Episode 25 Homes Under the Hammer

Hello and welcome to the show.

Even in the current more challenging market,

Martin and I still love to dabble in property.

We love the idea of getting a good deal but that is not always easy to do.

One way you still stand a good chance is

if you buy your property at auction.

Buying property under the hammer has become more popular.

Millions of pounds' worth of property is sold every month.

Here are the properties that sold at auction on today's show.

In Devon, it's important to keep the spending under control

because you are going to have to save some of your budget to sort this out.

This Victorian gatehouse in Dover gets my seal of approval

because I think it rocks!

And in Telford, Shropshire, the right answer proves illusive.

Six of one and half a dozen of the other...

All three of these properties went to auction.

We'll find out who bought them and how much they went for under the hammer.

I'm in Devon and Plymouth city centre

and Dartmoor National Park are both a few miles away.

This is Roborough, just outside Plymouth. Got a really nice village feel to it.

Good pub, what more could you want?

The property I'm here to see is a three-bed cottage.

Guide price was a £125,000-£135,000.

Looks all right from the outside, double glazing.

Let's take a look inside.

If you're tall, you will have to watch your head.

I guess you could call that charm.

Through the front door, stairs up to the bedrooms and bathroom

and I'm seeing that it's in need of a bit of attention.

Lots of interesting features. Sliding doors, terribly dated.

Don't care about that but what I do care about is...

HOLLOW POUNDING

..bit strange.

Clearly there is something obnoxious going on underneath there!

Dear, oh, dear! That feels really damp to me.

I never like to find dampness which hasn't got any air

flowing around it because that's when you get dry rot.

This is your front room. It's not a bad size. Low ceilings.

I suppose that's what you would expect. Let's carry on.

The damp is due to the front wall being below street level.

The wall may need to be tanked to stop the water penetrating.

Let's hope there are no problems at the back of the cottage.

The interesting thing is all the walls, they are not solid,

they're almost as if they were made of wood. They are stud partitions.

There's an opportunity to do something about it without spending too much money

because you will have to save some of your budget to sort this out.

It's at the back, the kitchen.

It's almost an extension, is it a lean-to?

It needs to be got rid of. There is a downstairs loo, which is good news.

More walls need to come down and this area needs attention.

There is a possible solution to the lack of space in the kitchen.

To see that, I have to head outside.

At the rear, you've got this garden and also a garage.

OK, that is potentially very good news

until you delve into the legalities of the land

when you discover, unfortunately, you only have pedestrian access

over this bit of land which is the entrance to the garage.

The reality is that it has been used for vehicle access over the years

because how else would you get cars into the garage

and access to this electricity sub-station?

If you could prove that you have had access,

you may be able to get this bit adopted as something you could have legal access to.

If that's not going to work, what's your options?

You could integrate the garage into the house to give you extra space.

Either way, food for thought.

You could move the garage door to the front roadside of the property

thereby circumventing the access issue.

But whatever you opt to do, the garage will need work as it's in a pretty poor state.

Let's hope the upstairs that went to auction

at a guide price of £125,000-£135,000 is a little better.

Bit strange, this. Upstairs, apart from a fairly wonky-feeling floor,

it feels like there's more space than there is downstairs.

You've got three bedrooms, two decent, one small.

Some signs of damp and I'm hoping that dip in the floor

is just because of the age of the property and not because of anything more serious.

In terms of space, the cottage has redeemed itself.

The bathroom is not left wanting on the size front either.

You'd probably want to put in a new suite but what's here is usable.

It looks as if there is a fairly new boiler here.

What does the auctioneer who sold the property think of it?

It's a classic cottage in a nice location

but it needs new kitchen, new bathroom.

What about integrating the garage into the house?

What effect could that have on the rental value after a full refurbishment?

If the cottage was done up and the garage remained as a garage,

I would expect to make towards £700 per calendar month.

If you incorporated the garage into the house,

it would give you a better chance of getting £675-£700. It won't make a material difference.

-And the sale value?

-If the garage was to remain as a garage,

I would expect the cottage to be worth in the region of about £170,000.

You turn the garage into a reception room,

you could be looking at £185-£190,000.

It's charming and it's in a good location

but there's a lot of work to sort it out.

Let's see who fancied the challenge when it went under the hammer.

This lot was late in the day, but although there are a few empty seats,

it still proved a popular property.

125, straight in. 120, 115, at 115, yeah?

Thank you, 115.

At 115, worth it for him. It's worth it to you, sir. 116. 116. 120. 120.

At 120, 121, 122, 123.

124, 124, 125, 125.

At 125, first time... Ooh!

126. 126. 127. 127. 128.

128. At 128, first time on my right. Is there a half?

128 second time.

At 128, are you sure and done? Here we go, at 128.

Sir, yours. 128.

That final bid of £128,000 was made by Dave

who was at the auction with his wife, Sue.

'This retired couple currently live about three miles from the cottage.

'Why did they want to buy it? I met up with them to find out.'

Sue, Dave, lovely to meet you both. Congratulations.

-Why do you raise your eyes?

-A lot of work but never mind.

Something must have appealed because you spent money on it.

Yes. We are trying to save fuel because my husband's local.

I don't know what it's going to cost us in beer

but it will save us on fuel.

We bought it to get nearer to Plymouth

-because I look after five grandchildren.

-Oh, wow!

-They live close by, do they?

-Yes, in Plymouth.

Let me get this exactly right, the pub across the road is your local.

-Yes, for 25 years.

-It was a bit of a crafty move.

What a dream for lots of people to buy a house so close to their local!

Exactly. Save on fuel but it's going to cost a lot in beer!

That's a first to me! Sue and Dave bought this place because it's near their local.

They plan to do it up and make it their new home.

What appealed about this place?

It needs all doing. I enjoy working anyway. It keeps me busy.

-I'm retired.

-What experience do you have?

-I was at Kelly Construction at Plymouth CFE.

-What's CFE?

-College for Further Education.

I am gas trained, plumbing trained, got a brickwork qualification.

-You should be doing more of this!

-Well, I'm retired.

-He's supposed to be!

-What? Retired or supposed to be doing more?

-I'd have him doing more!

Sue and Dave have developed properties before.

They've converted an old leisure centre into two houses and done three new builds over the years.

They were looking for a plot of land to build a new house

when they spotted this one and decided to go for it instead.

What are you going to do to sort it out?

Take all these walls down, all the ceilings down, all upstairs down, all new joists.

Turn the garage into a kitchen-cum-dining room. It's not used as an access.

What about the back because the kitchen is in a bit of a non-descript area.

Just as an utility room, I'll put a Velux window in to get more light -

a bigger window and a fresh downstairs toilet, a pretty big lounge with oak floor

and that will lead into the kitchen in there.

A breakfast bar with a butler sink and there will be French doors leading out to the garden.

-It will be nice.

-Wow! Upstairs?

-Refurbish all the bedrooms.

New lights. Raise the door heights. New bathroom suite upstairs.

-That's a lot of work!

-We don't mind.

By the time you've done the first bit, there's going to be nothing left apart from a shell.

Nothing at all, all the way up to the rafters.

-That's right, yes.

-Completely empty shell.

-The roof is all right.

-Come back next Friday!

# Speedy Gonzales Speedy Gonzales

# Why don't he come home?

# Speedy Gonzales

# The roof is leaking like a strainer

# We need some lino in the hall. #

'By the time Dave's finished demolishing,

'all that will be left will be the outside walls and the roof.

'So, just how fast is Dave going to work?'

-What's the timescale for this project?

-About 12-14 weeks.

-You are going to be hurtling into it.

-Push on.

-And cost?

Probably about £25,000 because the garage is going to cost a lot of money

to get it insulated properly for the building regs.

-Are you going to do it all?

-Yes.

-Apart from the tanking.

Just organise for someone to come in for plastering.

-The bathrooms and the kitchen...

-I'll do those myself.

-..Dave can do.

That's why I married him!

-A handy bloke to have around.

-Yes!

-Congratulations.

One of the most inspiring reasons for buying a property.

Not sure that's the right word!

-We wish you all the best! Good luck with it!

-Thank you.

-Pub's open!

It's the strangest things that guide you to properties.

In Dave and Sue's case, it was his local. The house is right opposite it.

Lots of work to be done on this one and he is being radical about his plans.

That is going to require time and for that, he needs to be out of the pub.

Find out how they get on sorting this place out later in the show.

This is Dover in Kent, famed for its iconic White Cliffs

which still resonates for many as an image of their homeland.

They say an Englishman's home is his castle.

Today, I might have one to show you

because this was the lot that went under the hammer.

It's only a little castle, a one-bedroom castle in fact,

but it's incredible! I love it!

It's the Gothic gatehouse designed to guard the imposing row of terraces here.

It really was a fortress of sorts.

I can't wait to get inside and see what our own little Dover castle has to offer.

I'm told this grand, classical terrace to build to house officers from the local garrison.

They stand in complete contrast to the over-the-top grandeur

of this little one-bedroom gatehouse built around 1850.

But while they enjoy views over Dover to the rear, our little lot guided at £55,000-£60,000

has to put up with this rather busy road.

# Come with me to my castle in the sky. #

I'm walking straight into the turret area of this little mini castle.

How fabulous it is too! Look at that front door!

Oh, I'm so excited. This is so unusual.

But the first thing that hits me is the smell of damp! It's not pleasant.

It's actually disappointing for me because there aren't many original features.

These beams are not real, that aertex wouldn't have been there.

The fireplace, that's not how it would have been.

You can see a lot of work needs to be done in here but it's not a bad size.

A snug little area here. You can walk into the dining room.

There is just enough room for a table and chairs.

Look at all this, tongue and groove wood. That needs to be ripped out.

You really need to think about reinstating some wonderful, old, original features.

Get rid of these ugly net curtains. Don't like those!

The kitchen, not bad! I like the way it's all open plan.

You could see your guests.

You could do with rearranging the space in here. New units.

The damp is worrying me but I would love to the owner of a castle like this

because, quite frankly, I think it rocks!

# I met her dancing to the castle rock. #

Up the stairs is the main bedroom,

emulating the medieval Gothic style in miniature

and there's a very cute bathroom with bags of character and a gorgeous bath.

It's a decent size which is more than can be said for the length of the lease

which has just 77.5 years left.

The tiny gatehouse oozes charm and personality.

It's typical of the Victorian fashion for grabbing a style

they like and just running with it and they've done a lovely job here.

It comes as no surprise that it's Grade II listed

which is something to consider for whoever takes this on.

I think it's great fun. If I think it's fun, others will too.

That is when you have to think,

is there a way this mini castle can make some big money?

Dover may not be like Brighton in terms of boutique-y weekends away

but the White Cliffs still draw the crowds.

Dover Castle is a major tourist attraction.

Why not think about offering holiday-makers

the chance to stay in their very own castle in Dover?

We asked a local estate agent for his thoughts.

This property is great. It's unique. It needs a lot of work.

It has got a lot of features and it would be lovely for someone.

What about holiday lets?

Could that be the key to unlocking the potential here?

It could be an idea.

There is no off-road parking which a lot of people like

but it is close to historical places.

It could be a good idea.

What could it make on the rental market?

On a normal tenancy, £450-£475 per calendar month.

I reckon it could make the same amount per week as a holiday let in peak season.

But what about re-sale?

If I was to value the property, it would be worth around £75,000.

Once the work has been carried out, you could go up to £100,000.

Not without its issues and not for everyone.

What an exciting property which could, given the right care and attention,

provide a reasonable return for someone.

Let's find out who fancied this Gothic gatehouse at the auction.

We start at 50. I've got you, sir, 50 I've got.

I've just seen you at the back.

52 if you like. At 52, 52. And 5. 55 and 8. 58.

58 and 60. 62 I've got and 4.

64. At 66 and 8, that's 68.

Already, £8,000 above the top guide price.

This unusual property is certainly generating a lot of interest.

We rejoin the action

when it's reached £33,000 over the top guide price.

-And it's still rising!

-93 and 4, 94. And 5 is against you again.

95. 96.

96. 96.

And 7. We are going with 97.

At 97, are you bidding? 97.

Shaking his head this time.

Back to you at 96 for the first time, 96 for the second,

third and final time. Sure you're all done. You've all had a fair chance.

£96,000 third and final time. Well done, sir.

# You're the keeper of the castle. #

The winning bidders were Michelle and Jez.

Jez works in IT for a pharmaceutical company. They have a few buy-to-lets

and a holiday cottage which Michelle manages.

I can see where this story is heading.

Guys, congratulations! You've bought yourselves a bit of history.

-We have, yes.

-Tell me why you wanted this gatehouse?

We'd been looking for another holiday let for such a long time

and nothing has fitted the bill.

Nothing has been unusual or would look right in the brochure.

We saw this and thought it was perfect.

It's different, it's unusual, quirky and it is in a good location

because of the castle and it looks like a miniature castle! Who wouldn't want to stay in a castle?

I have to say it's gorgeous. It's so attractive.

Jez, is that your line of business?

I work for the pharmaceutical industry as an IT contractor.

As well as that, we've got some rentals,

standard buy-to-let rentals and one holiday cottage.

How has the holiday cottage worked for you? Has it been easy to let?

We've let it out for two years and it's been pretty much fully booked.

It has done so well, rather than doing a bog-standard rental,

which is a bit boring, the holiday lets are really nice because you have contact with guests

and they chat about where to go and it's just something more interesting.

That's why we wanted to look for another one.

It's for our financial security for later on.

-When you saw this in the catalogue, what went through your minds?

-Wow! I want it.

-Really? Is that what she was like?

-Absolutely.

It didn't even stop until we won it in the bidding, she kept hitting me.

I was like, bid, bid!

# Hit me with your rhythm stick

# It's nice to be a lunatic

# Hit me, hit me, hit me. #

The pair know they have the lease to sort out

and there's a question about how much of the garden they own.

These are issues a solicitor should be able to deal with

and won't make a difference to the holiday-makers.

How are they going to sort out the inside, which is a mess?

It is at the moment. It won't be when we have finished with it.

What are you going to do with it?

Try and uncover some of the original features rather than this fireplace.

Proper flooring, tidied up, make the most of all the beams.

Luxury bathroom and kitchen.

We can't fit a four-poster bed in but we are going to get some sort of feature in there.

-Make the most of the turrets.

-What is the feel going to be inside?

Looking for warm and cosy.

Deep reds would be the way to go because of all the wood

and the fireplaces. A deep-red squishy sofa.

Deep-red curtains, that feel of warmth and luxury,

just make it comfortable so people want to stay here and want to come again.

What about the smell of damp? It's obvious it's lurking.

-Have you had time to investigate that?

-We had a quick look.

There are plants growth on the gullies.

All it is plants blocking the gullies

and the water is seeping through in a few places.

It all seems to fit. I don't think it's a major issue at all.

It might involve chipping off a bit of the plaster and patching

but I don't think it's a major problem.

Have you got a budget for the work you're going to do?

Erm, not really.

We tend to think about every expense and is it necessary?

Can we do it for less? And just do it that way.

When we've done developments in the past,

we've not let the budget spiral out of control

but we know we don't want to set an artificially low limit and not do it properly.

In fact, the couple reckon they have £15,000 to spend which might be a bit tight

but once they are done, what a return this place will give them!

How much would you achieve for a holiday let in peak season?

-£500.

-£500 to stay in the gatehouse. Yes. I think that's a good deal.

-I would quite like to stay here for a week.

-You know where we are.

Guys, it has been lovely meeting you.

I'm so excited to see how it all turns out. Good luck with this.

-Thank you.

-It's fantastic, I love it.

-Thank you.

-King and queen of the castle. You are that.

-Yes.

Damp, lease issues, I don't think anything would have put Michelle off this little gatehouse.

I can see why because it is a super opportunity as a holiday let.

They have got their work cut out to make it as impressive inside as it is on the outside.

Find out how this restoration goes later in the show.

Coming up in Telford, Shropshire, I find everything as it should be.

Straightaway, I'm seeing nothing that concerns me.

This mini castle in Dover has impressed one property expert.

It looks beautiful when you drive towards it.

As soon as you open the door, it just gets better.

Back in Roborough in Devon, Dave has something on his mind.

He wasn't thinking about me, he was thinking about the stairs and this place.

We return to Roborough near Plymouth in Devon where we saw

this run-down three-bedroom cottage bought for £128,000 by retired couple Sue and Dave.

He was formerly head of the construction department at Plymouth College

so was the perfect person to take on this project of renovating the entire house top to bottom.

It sounded like thirsty work and that's an excellent reason to buy the place.

Because my husband's local is over the road

but basically we bought it just to get nearer to Plymouth

because I look after five grandchildren.

-Let me get this right, the pub across the road is your local.

-Yes, for 25 years.

That was a bit of a crafty move.

What a dream that must be for lots to buy a house so close to their local.

Exactly. Save on fuel but it's going to cost a lot in beer!

A project like this should have been pretty easy to somebody like Dave.

Four-and-a-half months later, we returned to see

if this place will be something to raise a glass to.

The outside looks as little has changed but step inside...

Wow! All the partition walls are down to create one fantastic open-plan living area.

A new staircase has been installed

and there's a new kitchen area which Sue will talk us through.

We've opened up this part of the kitchen because it used to be a very narrow entrance.

There used to be a toilet here. We've knocked that down.

Dave was going to put one Velux in but he decided on two

which makes it really light and the sun just streams in.

We've managed to get all the appliances into the kitchen.

Washing machine, dishwasher.

I think I can see myself creating in this kitchen! I love it.

Up those new stairs and the three bedrooms have all been beautifully renovated

and finished off in a neutral but warm decor.

The bathroom has also been transformed

into something far more modern and relaxing.

All round, it's an excellent finish. But as Dave explains,

there were some issues to deal with at the very start.

There was dry rot, woodworm, asbestos in the walls,

damp coming through the front walls. I took out the pair of walls.

It was an open box. It's easier to start with an empty room than trying to work around it.

Dave and a friend gutted the house and with no designs on the final look,

started to put the place together.

There wasn't anything planned at all. We took the walls apart.

We thought, we'll just try this and that. That's how it is now.

This meant Dave and Sue would create higher ceilings in the open-plan living area

and map the rooms out in the best way.

Although getting the new stair layout didn't come easy.

He was lying in bed thinking about it and one morning, he said,

"I know what I'm going to do with those stairs.

"I think it will fit in, I'll try. But it's brilliant!"

It doesn't take a lot off the main living area.

But it gives us that extra room in that bedroom. He must have been thinking about it.

He wasn't thinking about me, he was thinking about stairs and this place.

Not only has removing the old staircase meant that the hall

now has a new downstairs loo but the small bedroom has benefited

from taking some of the old landing space.

Perfect for some little visitors that Sue is expecting.

The grand-kids have got their eye on the little one.

That has got to be a little pink, a bit of purple and blue for the boys and girls.

They've got their eye on that one.

But what about the garage?

Plans are on hold due to negotiations about access rights.

There are now structural issues to sort.

Sue and Dave still harbour long-term plans for this space.

But talking of space, there is a good reason why that kitchen is, well, on the small side.

Dave doesn't cook so it'll be in there anyway!

He don't even make a cup of tea.

So, it'll be me in there and that's room enough for me.

Sue and Dave, along with some help from their friend have certainly done an amazing job here.

The renovation has taken around four months,

a month more than anticipated.

Did that £25,000 budget get pushed as well?

We spent just under 23. £23,000.

We spent more than we should have done

because we bought oak flooring downstairs

and a gas fire and the kitchen units. It's worked out really well.

I'd say! All this for £23,000.

And if you add that to their purchase price of £128,000

the couple's total outlay is £151,000.

But is it money well spent?

Time to hear what two local property experts think

of Sue and Dave's work.

My first impressions of the property coming in -

it's crisp, it's clean, it flows beautifully.

It's very, very nicely presented.

The thing I most like about the cottage

is once you've dishevelled yourself

in the hall, the space opens up in front of you

and it's nicely zonal, horrible word, but it just is.

It really, really works well.

The standard of work is very, very, I would say, a very good quality.

They've done a really, really nice job.

Well, the experts seem to like the new house.

But if Sue and Dave ever decided to up and move,

would they make any profit on their £151,000 investment?

If I was putting the property up for sale now,

I would expect the property to achieve £185,000.

As I see it today, the cottage would go on the market at about £190,000.

So, a re-sale of the house could make a potential pre-tax profit

of between £34,000-£39,000.

Are they happy with that?

-Really pleased.

-Happy with it.

It is going to be our home

but it's still nice to know that we haven't lost by it.

And there's a potential rental income of between £700-£750 per calendar month in the offing,

should Dave and Sue's circumstances change.

But with the grand-kids nearby and their local over the road,

I think it's fair to say they're here to stay.

That's certainly something worth raising a glass to.

I'm in the town of Telford, the largest in Shropshire.

Named after civil engineer, Thomas Telford,

it was purpose built in the 1960s and '70s.

It boasts a busy commercial centre, shopping malls

and great transport links to further afield.

I'm just north of the town centre in an area called Ketley Bank,

an established residential and lettings area.

The property I'm here to see sounds ideal -

three bedroomed, ex-local authority, semi detached

at a guide price of £65,000.

These ex-local authority houses are generally well built

and this one seems in really good condition on the outside at least.

Not expecting too many surprises in terms of that lay out

and I would be right, actually.

Entrance foyer there.

I like the fact there's a bit of storage under the stairs,

somewhere to put your shopping or whatever when you come in.

Stairs up to the bedrooms. Through into your front living room.

Nice to see it's got double glazing which is good.

It certainly feels pretty nice and warm which is good.

The central heating seems to be working.

Layout - we've got the front living room are here.

This, obviously, opened up to reveal the rear living area.

The one that's screaming out to me, you want to open that up,

put some patio doors out into the garden.

That would open this room up.

And then, no surprises, through here into the kitchen.

Tired old units.

Needs replacing.

But straightaway I'm seeing nothing that concerns me.

It's a fairly standard renovation job,

a chance to put your mark on the place

but without too many major structural things to do.

Good start.

# Love me up

# You've gotta start me up. #

There are definitely cosmetic improvements to be made

like putting a lovely fireplace in this room which, I think,

would make a big difference.

Upstairs, and there's a separate toilet and bathroom

which raises the age-old question.

Up here the only other bit of structural work

you might want to consider is taking out this wall between the loo and the bathroom.

I hate to go on about this. It's one of those debates. Do you? Don't you?

I think having a separate loo works really well if it's a family house.

On the other hand, some people like a really nice, spacious bathroom.

Ow, it's six of one and half a dozen of the other.

Down to you, really, or down to whoever bought the place.

# I never seem to know what to do

# I just can't decide for myself... #

Whatever you decide, I think the suite could do with being replaced.

The bedrooms are also upstairs.

At the front, there's a rather small single

but the other two are well-proportioned doubles.

A lick of paint, some new floor covering

and you could be good to go.

And it gets better outside because the garden is a great size.

It's in a really good condition

and there are even a couple of handy sheds out here.

I think this place, guided at £65,000, could be ideal for a first time investor

as I can't see any major issues to deal with here.

Let's see what a local estate agent thinks.

First impressions of the property, it's in a good position,

centrally located in Telford.

Apart form one or two cosmetic improvements,

it seems to be in pretty good order.

But what about the numbers? How much is this worth?

Once renovated, erm, if it was done to a higher spec

with a conversion of the bathroom,

I would suggest an asking price of between £100,000-105,000.

So, money to be made then if put up for sale.

But this is also a good area for letting out

so what rental income could it earn?

If this was to go on the rental market,

I would suggest a rental value of £550 per calendar month.

Well, I hope you can see the potential for this place

either as a nice place to live or a great rental opportunity.

Not too much to do, it's mostly cosmetic. A good one to go for.

Let's see who spotted it when it went under the hammer.

£50,000 to start me on this.

Good looking semi-detached house, three bedrooms.

50 could we say to start.

50 bid seated right. At £50,000.

55 I'm going to say now.

At 55. At 55,000.

60. £60,000.

65? Do you want to go one now?

You do. 61.

62.

At...63.

64? 64.

Gotcha. £65,000.

66. 67.

This three-bedroom semi-detached house proved a popular lot

and bidding increased to well above the £65,000 guide price.

78, back in seated.

79.

80?

80 anywhere else?

That's 79 for the first time.

At 79 for the second time.

Third and final time. We're all done at £79,000.

Just in time, 80.

80,000. Seated then at £80,000.

All done now.

80 first time.

80 second time.

No mistake bid seated. 80 third and last time.

All done. Your lot, sir. Well done.

That successful bid of £80,000, 15,000 over the guide price,

was made by the nephew of Marion, here on the left,

with her daughter Sylvia.

Marion's a retired care worker and is originally from Shropshire.

She bought the property with her daughter as their first joint investment.

I met them there to find out more.

-Sylvia, Marion, lovely to meet you both.

-Thank you.

-Congratulations.

Tell me why you wanted to buy this place.

We were thinking about it for some time

and we thought the time might be right to make a possible investment.

We just heard from a relative that they went to the auctions

and bought a property.

We thought we'd give it a go.

How does the idea of working together and going into property come about?

Well, we're very close. We've always had a close relationship.

We've come to the point now we feel we want to make an investment and...

An investment at the moment.

And just see what we can do with the possibility

of getting a property and seeing what we can do to make a change.

So, why this one specifically?

I liked the look of it when it was advertised

but I wasn't sure about a few other ones,

but I did like this one.

And, er, we decided to come and see it first of all.

And then when I looked around I thought this may be the one.

# I want you, you, you You, you, you, you

# I, I, I, I, I want you... #

They both own their own homes in London

and live only ten minutes from each other.

But as Sylvia works in social work full time, it will up to Marion

and her husband Julius to come to Telford and oversee the renovation.

Tell me what you're going to do to sort it out.

We've got a person who's going to help us, a builder as well.

So, we're speaking with them

to see what possibilities can be done to improve the house.

We're likely to start on the upstairs first of all

and work our way downstairs.

It will be a case of redecorating.

The skirting and the flooring will be changed.

And the television aerial. Not television, the other.

Quite a bit of wires around so we'll probably clear all of that.

So, TVs in every room will be a thing of the past.

But as Marion thinks this is likely to rent to a family

they're going to keep the WC and bathroom separate with new fittings.

Downstairs, they think they might knock down a wall to create

an open-plan kitchen/diner.

Although they're not keen on my idea of patio doors out onto the garden,

they might go a step further in future and add a conservatory.

There are still quite a few ifs, buts and maybes

but one thing they need to work out is what's it all going cost.

# No matter, baby, what they're calling you... #

What is the budget for doing the work?

-About 6,000-7,000.

-Could be something like that.

And the timescale for it?

-Maybe, if we get on very well, maybe just two months.

-Right.

And then the plan for the future is to do more together or will you see how this goes?

See how this goes and if we're happy and it's a success

then we can certainly think about it in the future.

-Right.

-Yes, yes.

-Congratulations.

Good luck to you both and we look forward to seeing how you get on.

-Thank you very much.

-Thank you very much.

Mother and daughter, Marion and Sylvia,

seem to chosen well with this, their first property development project.

I think, possibly, Marion's got the short end of the straw

as she'll be administering most of the work

but she seems to be looking forward to that.

No particular firm plans as yet, it all seems pretty much in the air.

But you can find out what they end up doing later on in the show.

It's been a while since we saw those properties.

There should have been work done but you can't bank on it.

All sorts of problems can arise.

Let's find out what they've been up to.

Back now to Dover in Kent where Jez and Michelle

had snapped up a small piece of history at auction

by buying this one bedroom, Victorian Gothic-style gatehouse.

I think it's fair to say Michelle was dead keen.

When you saw this in the catalogue what went through your minds?

Wow! I want it!

-Really?

-Yes.

-Is that what she was like?

-Absolutely.

It didn't even stop until we'd won it in the bidding.

-She kept hitting me.

-Bid, bid!

They paid £96,000 for this property

which was a whopping £36,000 above the top guide price.

The plan was to run this as a business and rent it out as holiday accommodation.

They already have one property they successfully lease for holidays

and this mock fairy-tale castle has the eye-catching looks

to make it stand out in any holiday brochure.

The couple have invited us back almost four months

after our first visit to take a look at the property now.

They've created a sympathetic and cosy feel

to this castle in miniature.

On the ground floor warm colours have been introduced

to the soft furnishings.

The beams have been cleaned and restored and laminate flooring laid.

The kitchen's been replaced

and the partition removed for a more open and spacious look.

The fireplace is a beautiful feature in this Grade II listed building.

The fireplace that was in here was unusable

because there was no hearth or anything here.

We were a bit worried about removing something that might be original

but an expert told us it couldn't have been original to the building.

When we pulled it out we found all sorts of modern brickwork behind there

and it just fitted perfectly into the dining room.

# And I smile as I sit because I've found my perfect fit

# And it is you... #

It's lovely when things work out so beautifully.

Just take a look up the stairs.

The old bathroom has been banished

and the small window which is still there has been covered to protect it

from water damage and help create a more private and enclosed space.

They were disappointed to replace the stand-alone bath

but the other period style fittings and muted colours give it a warm and relaxing feel.

And the bedroom? It's loved-up and lush.

A perfect romantic hideaway.

I chose the decor in particular to feel sumptuous and comfortable and luxurious.

I wanted it to have a warm feeling

and to also fit in with the miniature castle feel of the building

with its turret and beams and fireplaces.

The bedroom, I wanted it to feel very unlike the sort of thing people would have at home with the canopy bed

and to feel a bit special for people coming on holiday.

Jez and Michelle have certainly stamped their mark here

but sorting out this room, which included the turret,

wasn't without its problems.

The biggest problem we had was the guttering round the turret was blocked

so all the rain that fell on the turret was overflowing the gutters

and it was pouring in through the walls.

We eventually cleared it by removing a piece of the glass here,

clearing a small hole and all the water drained through.

We just watched the gutters empty

and within minutes the water stopped running in

and then it was a case of getting dehumidifiers on all the walls

for the next few weeks.

# Some places they get mildew, and others get too hot

# Some places are so damp everything you got just rots... #

The electrics also needed major work and a potential future expense

will be extending the 77-year lease and perhaps even buying the freehold.

But for now with just a few bits

to finish the plan is to focus on letting this out.

They've already got their first let booked in three weeks time.

How much have they spent?

The building work has come in at about £12,500

and the additional furnishings and additional costs related to the cottage business

has come in at about six.

In practice, if we'd been doing something up for sale

it would have come in a lot cheaper than that

but we've tried to get a better quality finish.

Yes, what you spend and how you spend it

definitely depends upon your target market.

Let's tot up some figures.

Jez and Michelle have spent £18,500 on the renovation and refurbishment

plus £96,000 on the purchase, making a total of £114,500.

Has this been a good investment? Let's see what a local estate agent

and a holiday let expert think.

This property has a really unique appearance

and a lovely history to go with it.

I think it looks beautiful when you drive towards it

and as soon as you open the door, it gets better.

First impressions are very good. It's a nice Grade II listed property

and the renovation works they've carried out are to a good level.

Jez and Michelle have invested £114,500 here

but have they added value?

What could it be worth if sold on?

If I was putting this property on the market,

I'd place it on the market at around £100,000-110,000.

We always knew we probably paid too much for a house at the auction

but what we bought was a holiday rental businesses rather than a house.

Providing we get enough weeks booked, the numbers should still stack up.

At that top re-sale estimate of £110,000,

they're probably just about breaking even.

If you take into account the extra expense involved in renovating

this listed building as a holiday let,

that meant meeting all the inherent rules and regulations,

such as fire safety.

Time to get that all-important holiday let valuation

from a lady in the know.

This holiday home would generate a weekly income

of £500 during peak season.

Low season you'd be looking nearer £250-270 per week.

Mid-season would be somewhere between the two.

Those figures are about what we expected.

It's now a case of finding out how many weeks we're going to get booked throughout the year.

We've got quite a few bookings already

so that's a really good start. We've just got to build on that.

Michelle and Jez's aim was to bring out the charm

and personality that this fairy-tale gatehouse needed

to turn it into an attractive holiday let.

The rental valuations suggests that's the ideal use for the property

and it's good to hear that bookings are already starting to fill the calendar.

But is this where the tale ends?

We're always on the lookout for other cottages

or other rental properties or even places we can do up and sell on.

So, we're always on the lookout.

Time to return to Telford in Shropshire

where this three-bedroom, semi-detached property

was bought for £80,000 by Sylvia and her mother Marion

who was a retired care worker.

The house was in pretty good nick which was just as well

because this was their first investment property and their first time in auction too.

Tell me why you wanted to buy this place?

We were thinking about it for some time

and we thought the time might be right to make a possible investment.

We just, you know, heard from a relative

that they went to the auctions and bought a property.

We thought we'd give it a go.

# Time was right

# Right now. #

Mother and daughter live just ten minutes away from each other

but in London not Telford.

With a builder lined up there were no plans for them to be hands on with this project.

Sylvia works full time

so it would be up to Marion, who's originally from the area,

to oversee the refurbishment, albeit from a distance.

Two months after we first met them

we're back to give their first property project the once-over.

What's changed in this room is we've created a doorway here

so you walk straight in because that was blocked before.

In the kitchen we've changed the units.

We've completely changed them, new sink and everything.

Across here there was a wall with some units.

We've taken the wall down and there's an RSJ which is in the ceiling.

We've got an open dining room.

It's so much bigger and it would be ideal for a family.

It's perfect, it works so well.

Upstairs, the redecoration continues with each of the bedrooms

sporting a clean, fresh feel and there are new carpets throughout.

The toilet and bathroom have been kept separate

but a new suite has been installed including a new electric shower

and floor-to-ceiling tiling in the bathroom.

So this area has all gone to Marion's plan.

Of course, I do prefer a separate WC and bathroom for a family, as you probably know.

'So, who did they get to do the work in the end

'and how easy was it to project-manage from a distance?'

We got somebody locally that we know to do the building work.

We kept into touch with them by telephone

and we've been up a few times.

Luckily, it went quite smoothly.

# I'm glad that things worked out so well. #

Outside, the property looks to have changed little

although the idea of patio doors or even a conservatory

has not been ruled out for a later date.

But for a first property development, I'm impressed.

They've done the body of the refurbishment within the timescale they planned.

# But did it all go to plan? #

When we first said two months we thought that's being extra positive

but we were very fortunate that it took us two months.

-We've got a few little things to do, but overall, yeah, we're quite fortunate.

-Yes.

What about their £6,000-£7,000 budget?

I spent about £8,000-£9,000 on it.

We actually chose a different carpet that cost a bit more.

Also the kitchen as well.

We weren't sure whether we'd get to do the kitchen but we thought we'll change the kitchen.

When we did decide to do that, it obviously increased the expenditure.

Yes, it did.

'I think Sylvia and Marion chose very well with their first development project.

'It's been a pretty straightforward refurbishment for them

'to dip their toes into.

'But, come on, spill the beans you two.

'Was it really this easy or have there been any family squabbles?'

No, not at all.

No, we got on really well!

No, it was OK.

We discussed it in advance and we hoped it would go well and it did.

I can see it did. But what do two local estate agents think?

Sylvia and Marion have invested just under £90,000 on this property

including the £80,000 purchase price.

Was it money well spent? Time to find out.

I think the vendors have maintained it to a fantastic standard.

The kitchen is a great selling point for any perspective purchaser.

It's a large kitchen to be able to put a dining table in.

I believe families will like that when they come to either rent or purchase the property.

Decor is extremely modern which is a good factor for us when it comes to promoting it.

One thing I particularly like is they've opened up the kitchen

an made it into an open-plan kitchen/diner

which, when trying to sell a house, makes it more appealing.

That's good to know.

Since we're on the subject of re-sale,

have Marion and Sylvia's improvements added any value here?

What's the property worth now bearing in mind they've spent nearly £90,000 on it?

I would market this property for £100,000.

If you put this on the open market, the market is now moving a bit more

and I would suggest an asking price of around £100,000.

I would have thought it to be a bit under. I expected more.

Maybe 20,000 more, perhaps.

OK, a little disappointed.

The estate agents valuations would see the pair with a pre-tax profit

of just over £10,000.

But Marion and Sylvia always intended it as a buy-to-let.

So, could the property do better in the local rental market?

If I was to put this on the rental market,

I would recommend a rental value of £550 per calendar month.

If the vendors were to rent this property, I believe they'd get £575 per calendar month.

What I expected, really. I think, yeah, not surprised at all.

It's good.

The estate agents' estimate would give Marion and Sylvia

a well-deserved yield of somewhere

between 7.5%-8%, meaning rental is the best route here.

Overall, I reckon these fledgling property developers

are ready to fly the nest and try another on.

But what do they think?

Seeing how this is going first and venture out probably later or something.

We're not quite... We'll see how this goes first.

In the ever-changing world of property, there are always new things to learn

so we'll have more advice for you next time.

-Look forward to seeing you then, goodbye.

-Goodbye.

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