0:00:02 > 0:00:06- Welcome to the programme. - If you've ever tried to buy a property but been caught in a chain,
0:00:06 > 0:00:08you'll know what a nightmare it can be.
0:00:08 > 0:00:11So, how do you avoid that kind of situation?
0:00:11 > 0:00:13Well, one way to cut through the links in the chain
0:00:13 > 0:00:15is to buy your home under the hammer.
0:00:41 > 0:00:45Well, people go to the auction to buy all sorts of properties
0:00:45 > 0:00:46and they have all kinds of budgets.
0:00:46 > 0:00:48There's an enormous choice available,
0:00:48 > 0:00:51so what did our buyers decide to bid for?
0:00:54 > 0:00:59I have just one verdict on this property in Gillingham, Kent.
0:00:59 > 0:01:01Dated, dated, dated!
0:01:04 > 0:01:08In Maryport, Cumbria, I've made my mind up about this house.
0:01:08 > 0:01:12To be honest, I don't care about the rest of the house, I already love it.
0:01:12 > 0:01:14And in Wiltshire,
0:01:14 > 0:01:17sometimes it's not just plants you can grow in the garden.
0:01:17 > 0:01:20You've got to be a dedicated gardener to chose your roses
0:01:20 > 0:01:22over a rather large chunk of cash.
0:01:24 > 0:01:27All these properties went to auction -
0:01:27 > 0:01:30we'll find out who bought them and what they paid for them
0:01:30 > 0:01:32when they went under the hammer.
0:01:34 > 0:01:36Want to live in London,
0:01:36 > 0:01:39but can't afford the astronomical property prices?
0:01:39 > 0:01:42Well, Gillingham in Kent could be the place for you.
0:01:42 > 0:01:46Reaching the capital couldn't be easier, it takes an hour by train,
0:01:46 > 0:01:50and there are also strong road links, should you wish to drive.
0:01:50 > 0:01:54The average property price here is just under £200,000,
0:01:54 > 0:01:59so, you can see why it's a big hit with commuters.
0:02:00 > 0:02:02It's also a very popular area with students,
0:02:02 > 0:02:03with MidKent College nearby,
0:02:03 > 0:02:08an £86 million development which opened two years ago.
0:02:08 > 0:02:11Now with students around,
0:02:11 > 0:02:15there are two things they're bound to need - pubs and accommodation.
0:02:16 > 0:02:18# Everybody's got to learn sometime. #
0:02:20 > 0:02:24So, this area is an ideal buy-to-let opportunity.
0:02:27 > 0:02:30A short walk from the college and the train station
0:02:30 > 0:02:33and I'm here to see today's auction property.
0:02:33 > 0:02:36Now, the catalogue tells me it's in need of some improvement,
0:02:36 > 0:02:40and that is good news, because there could be scope to add value.
0:02:40 > 0:02:43It's here, looks OK from the outside,
0:02:43 > 0:02:48and the guide price, well, that was set at a very reasonable £85-90,000.
0:02:48 > 0:02:50I'm going in.
0:02:50 > 0:02:53This two bedroom, mid-terrace house sounds promising on paper,
0:02:53 > 0:02:55but what about inside?
0:02:55 > 0:02:58Dated, dated, dated!
0:02:58 > 0:03:01Look at this obscured glass, it's rather strange to have it there,
0:03:01 > 0:03:03but it is letting light into the hallway.
0:03:03 > 0:03:05Nevertheless, it's got to go.
0:03:05 > 0:03:08Wallpaper, that's all got to come off, you've got a good-sized lounge,
0:03:08 > 0:03:11but tongue-and-groove everywhere in there.
0:03:11 > 0:03:16It's not quite fitting the modern, 21st-century look, I don't think.
0:03:16 > 0:03:19Polystyrene tiles on the ceiling, the carpets have all got to come up,
0:03:19 > 0:03:24this has all got to go, it needs a complete rethink, this property.
0:03:24 > 0:03:26But the room sizes are good,
0:03:26 > 0:03:28and look at this for the back of the house.
0:03:28 > 0:03:31I think this was an extension that was added on at a later stage.
0:03:31 > 0:03:34A good sized kitchen, although the kitchen's out there,
0:03:34 > 0:03:36I'd like to bring it in here.
0:03:36 > 0:03:38Once you've done those alterations,
0:03:38 > 0:03:41you could have yourself a nice little house here.
0:03:41 > 0:03:45Well, I'm optimistic so far, but what's in store upstairs?
0:03:47 > 0:03:50So, we have two good-sized bedrooms upstairs,
0:03:50 > 0:03:56and we also have, which is good news, a bathroom of a fair size.
0:03:56 > 0:03:58Some rather jazzy pink and black tiles.
0:03:58 > 0:04:01The good thing is we have a cupboard space here,
0:04:01 > 0:04:04we have exactly the same next door,
0:04:04 > 0:04:07and I have seen this done so many times.
0:04:07 > 0:04:09You could create a corridor along here,
0:04:09 > 0:04:12this is all so bedroom number one can access this bathroom
0:04:12 > 0:04:15without having to walk through this bedroom.
0:04:15 > 0:04:18Partition wall here, doorway, so this allows this room
0:04:18 > 0:04:22and that room to have separate access to the bathroom.
0:04:22 > 0:04:24Fantastic, that all works out.
0:04:27 > 0:04:30A bathroom leading off one bedroom is never ideal,
0:04:30 > 0:04:31especially in a student let.
0:04:33 > 0:04:36And check out that design in the bathroom!
0:04:45 > 0:04:48It all depends on what you're going to do with the property.
0:04:48 > 0:04:49If it's a shared one,
0:04:49 > 0:04:51you'll want to move this bathroom to between the two bedrooms,
0:04:51 > 0:04:55but the bottom line is that I think rental is the way forward here.
0:04:59 > 0:05:03Personally, I don't think this house is a short-term money-making machine,
0:05:03 > 0:05:06the resale figures aren't amazing, so I would be inclined
0:05:06 > 0:05:10to take the long-term view and rent this property out.
0:05:10 > 0:05:12Let me show you why.
0:05:12 > 0:05:14Now, I'm going to crunch some numbers here.
0:05:14 > 0:05:16OK, so, a buyer picks this up at auction for,
0:05:16 > 0:05:18let's say £100,000,
0:05:18 > 0:05:22they spend a further ten grand in fees and renovation costs,
0:05:22 > 0:05:25and they secure a rent for £600 a month.
0:05:25 > 0:05:30So, that's 600 x 12,
0:05:30 > 0:05:33that equals £7,200.
0:05:33 > 0:05:37Then you divide that number by the total amount spent,
0:05:37 > 0:05:41in this case, £110,000.
0:05:41 > 0:05:43So, I've done some figures previously,
0:05:43 > 0:05:47now, that comes out at roughly 0.065.
0:05:47 > 0:05:50If you times that by 100,
0:05:50 > 0:05:54you have your figure of 6.5,
0:05:54 > 0:05:56and that is your yield.
0:05:56 > 0:05:58A great return on an investment, I think.
0:05:58 > 0:06:00Those are just my thoughts,
0:06:00 > 0:06:03but what does a local property expert reckon?
0:06:03 > 0:06:06We asked one along to hear his opinion on this place.
0:06:08 > 0:06:10First impressions, nicely surprised,
0:06:10 > 0:06:13it's really, a typical house for this area,
0:06:13 > 0:06:17needing a fairly basic and light renovation.
0:06:17 > 0:06:22This property as a rental would appeal to students and families alike.
0:06:23 > 0:06:26Once the property was renovated, how much could it rent out for?
0:06:28 > 0:06:32I would expect to achieve around £600 per calendar month.
0:06:32 > 0:06:34What if the buyer chose to sell it on?
0:06:36 > 0:06:40When completed, I'd put this house on the market for £120,000.
0:06:40 > 0:06:43Well, you know what I think by now,
0:06:43 > 0:06:45this is a perfect buy-to-let property,
0:06:45 > 0:06:47if you buy at the right price.
0:06:47 > 0:06:50You'll never be short of tenants, and the yield is high.
0:06:50 > 0:06:52It's a no-brainer to me,
0:06:52 > 0:06:56let's see who else fancied this one as we go to auction.
0:06:56 > 0:06:59Start me at 85,000, good value at 85,000.
0:06:59 > 0:07:02Start me at 80 then, at 80,
0:07:02 > 0:07:0480, I'm on the way. 80, I've got.
0:07:04 > 0:07:07With you at £80,000, and 82?
0:07:07 > 0:07:0982. And five?
0:07:09 > 0:07:1185? 85.
0:07:11 > 0:07:12And eight, 88,000.
0:07:12 > 0:07:1490 anywhere?
0:07:14 > 0:07:1990 in a fresh place, 92 it's against you, the 91 I've got, and two, 92?
0:07:19 > 0:07:23You know it's worth it, 92 I've got, and three, and four.
0:07:23 > 0:07:26It's in the room, its 94, it's with you again. 95 if you like now,
0:07:26 > 0:07:2895, and six?
0:07:28 > 0:07:31I've got 96 sitting in a fresh place in the aisle.
0:07:31 > 0:07:3497, it's against both of you 97, he's shaking his head.
0:07:34 > 0:07:37At 96, then, sitting in the aisle right in front of me for the first time.
0:07:37 > 0:07:42At £96,000 for the second, 96 and a half, I'll take once.
0:07:42 > 0:07:4697 it's against you. 97 and a half again?
0:07:46 > 0:07:4897 and a half. And 98?
0:07:48 > 0:07:5298? He says no. 97 and a half then, for the first,
0:07:52 > 0:07:55second, if you're sure you're all done,
0:07:55 > 0:07:58third and final time, £97,500, all done.
0:07:58 > 0:08:00It's yours at 97 and a half.
0:08:00 > 0:08:03And it's Craig who's the happy new owner of the property,
0:08:03 > 0:08:07with his triumphant bid of £97,500.
0:08:09 > 0:08:11He works for a sports distribution company
0:08:11 > 0:08:14whilst taking a break from his Business Studies degree.
0:08:14 > 0:08:18He's based in London, but knows this area well.
0:08:18 > 0:08:21At the age of 23, he's a young investor,
0:08:21 > 0:08:22I met him at the house
0:08:22 > 0:08:27to find out whether he was doing this refurbishment for business or for pleasure.
0:08:30 > 0:08:34Craig, congratulations, lovely to meet you today.
0:08:34 > 0:08:36- And you.- Well done.- Thank you.
0:08:36 > 0:08:38I want to know why you wanted to buy this property.
0:08:38 > 0:08:41Well, basically, my dad owns a property in the area as it is,
0:08:41 > 0:08:43and that's a student let,
0:08:43 > 0:08:46and I thought I could replicate that on my own.
0:08:46 > 0:08:48So, is it close to this house?
0:08:48 > 0:08:53- It literally two, two to three roads away, so yeah, five minutes' walk. - Oh, wow.
0:08:53 > 0:08:56Fantastic, you score points there, because you obviously know the area.
0:08:56 > 0:08:57Yes.
0:08:57 > 0:08:59What about this property?
0:08:59 > 0:09:02Um, good question. To me, it was meant to be,
0:09:02 > 0:09:04because I saved up the deposit,
0:09:04 > 0:09:07and literally, I finished that about a month ago,
0:09:07 > 0:09:09and then, lo and behold, I had a look on the auction,
0:09:09 > 0:09:11and the property came up.
0:09:11 > 0:09:14So I rung up my dad, and he was like, yeah, let's go for it.
0:09:14 > 0:09:17Has it been difficult trying to save that money over such a long period of time?
0:09:17 > 0:09:21Oh, absolutely, with the girlfriend wanting to go on holidays,
0:09:21 > 0:09:26and friends wanting to go out, it's been tempting to tuck into it.
0:09:26 > 0:09:29But, yeah, you've just got to have a lot of self-discipline, and just, yeah.
0:09:29 > 0:09:32Do you have any money left over for the work you need to do here?
0:09:32 > 0:09:35I do, I've got a very tight budget of £5,000,
0:09:35 > 0:09:38and Mum and Dad's bank account if I need it.
0:09:38 > 0:09:41Five grand does sound tight,
0:09:41 > 0:09:44so, what's he going to try and do with that?
0:09:44 > 0:09:47The plan is to move the bathroom into the conservatory room,
0:09:47 > 0:09:49cos at the moment, that's just dead space.
0:09:49 > 0:09:54And then, we're going to juggle the lounge upstairs,
0:09:54 > 0:09:56cos at the moment you have to walk through someone's bedroom
0:09:56 > 0:09:58to get to your room, and that's a no-no.
0:09:58 > 0:10:02So, therefore, we've decided to move the lounge up there instead.
0:10:02 > 0:10:04So, that's the communal area of the house
0:10:04 > 0:10:07and kitchen, bathroom down here.
0:10:07 > 0:10:10- What will this room be? - This will be a bedroom as well.
0:10:10 > 0:10:12Now, what sort of rental income can you get by doing that?
0:10:12 > 0:10:15Based on what my dad's got round the corner,
0:10:15 > 0:10:17anywhere between £60-£70 per week, per room.
0:10:17 > 0:10:21OK, now, how does that compare with a family let,
0:10:21 > 0:10:24because I've got numerous properties that I do the same thing,
0:10:24 > 0:10:26but a family let to me, you get longevity,
0:10:26 > 0:10:29you get a family that stay in it for quite a long time,
0:10:29 > 0:10:32and you wouldn't have to do so much partitioning and rearranging.
0:10:32 > 0:10:34Have you looked into that?
0:10:34 > 0:10:36Not at the moment, I am open to ideas,
0:10:36 > 0:10:39cos obviously, the project is at its starting point,
0:10:39 > 0:10:42so, yeah, maybe if you visit me again, I might have changed my mind,
0:10:42 > 0:10:44but I will definitely look into it.
0:10:53 > 0:10:56I'm worried that a multiple let will mean more work,
0:10:56 > 0:11:00and let's face it, Craig's five-grand budget will only stretch so far.
0:11:02 > 0:11:05How are you going to manage to do it on such a small budget?
0:11:05 > 0:11:08The good thing is, my mother and father will be living in the property and doing it up.
0:11:08 > 0:11:11My dad's a wizard with DIY,
0:11:11 > 0:11:13he's been doing it ever since he could stand up, basically.
0:11:13 > 0:11:18And, yeah, he basically done his house round the corner,
0:11:18 > 0:11:22so all the work was done there, so, yeah, we're going to save that way.
0:11:22 > 0:11:24And how are your DIY skills?
0:11:24 > 0:11:26You've talked about your dad's, what about yours?
0:11:26 > 0:11:28How much are YOU going to do here?!
0:11:28 > 0:11:30Yeah, they're very basic, to say the least.
0:11:30 > 0:11:34But I'm a quick learner, so hopefully this project will whip me into shape.
0:11:36 > 0:11:39Having such helpful and willing parents
0:11:39 > 0:11:41will save Craig a lot of money in the long run.
0:11:41 > 0:11:46But how long has he given them to do all the work on the property here?
0:11:48 > 0:11:50The deadline is four months' time,
0:11:50 > 0:11:53so, yeah, I've given my mum and dad up until that time to do it.
0:11:53 > 0:11:55And they're really happy,
0:11:55 > 0:11:58because that means my mum and dad can keep busy doing what they do,
0:11:58 > 0:12:00as well as looking at property in the area for themselves.
0:12:00 > 0:12:03Aren't they going to miss their creature comforts?
0:12:03 > 0:12:07I'm sure I can bring them some coffee, or come down on the weekend, keep them company.
0:12:07 > 0:12:10You think that cheeky little smile can get away with everything, don't you?
0:12:10 > 0:12:13Pretty much, it has done so far, so, yes!
0:12:19 > 0:12:22Craig, I'm really excited to see the end product, well done.
0:12:22 > 0:12:24- Thank you.- Thank you.
0:12:24 > 0:12:28Craig's mum and dad have certainly got their work cut out here,
0:12:28 > 0:12:32and they are working to a tight budget of £5,000.
0:12:32 > 0:12:37Something tells me they may need to dip into their own bank accounts.
0:12:37 > 0:12:41Will Craig manage to turn this house into a four-bed student let,
0:12:41 > 0:12:45or will he take my advice and opt for a family rental?
0:12:45 > 0:12:48You can find out which way he goes later in the programme.
0:12:53 > 0:12:58This is the busy harbour town of Maryport on the coast of Cumbria.
0:12:58 > 0:13:00Once famous for steel production,
0:13:00 > 0:13:03it now thrives on smaller industries,
0:13:03 > 0:13:07and the charming harbour with its bobbing fishing boats
0:13:07 > 0:13:09is also home to a famous blues festival.
0:13:10 > 0:13:14But I hope the property I'm here to see doesn't give ME the blues.
0:13:17 > 0:13:23So, with all that going on and good proximity to the town centre,
0:13:23 > 0:13:24and some good local schools,
0:13:24 > 0:13:28the property I'm here to see sounds like a real find.
0:13:28 > 0:13:31It's on this really interesting corner plot,
0:13:31 > 0:13:33so it's got this nice double aspect, looks in good condition.
0:13:33 > 0:13:38The guide price was just £80,000 for a large, three-bed house.
0:13:38 > 0:13:40Oh, let's have a look.
0:13:40 > 0:13:44From the outside, it looks like a fine, solid property
0:13:44 > 0:13:45over three floors.
0:13:45 > 0:13:48So, I can't help feeling this place has something going for it.
0:13:48 > 0:13:51Not quite sure what I'm going to find, actually -
0:13:51 > 0:13:55given the odd shape - but let's see what there is.
0:13:55 > 0:13:58So, the lounge area there, the bay window is nice,
0:13:58 > 0:14:01it looks to be in, oh, nice features, in good condition.
0:14:01 > 0:14:04And then through here, I am loving this, look at this room,
0:14:04 > 0:14:07a really nice, what would you call this,
0:14:07 > 0:14:10a family living area, I would say.
0:14:10 > 0:14:12You've got this wonderful, old range cooker.
0:14:12 > 0:14:15Unusual ceiling, but a really nice space,
0:14:15 > 0:14:18especially when you consider where it's located,
0:14:18 > 0:14:20it's literally off the kitchen area.
0:14:20 > 0:14:24Again, lots of light flooding into this part of the house,
0:14:24 > 0:14:29obviously it's a bit of an extension at some point, cos it's got this rather unusual ceiling.
0:14:29 > 0:14:31Maybe not ideal,
0:14:31 > 0:14:34but the positives of it are that you get all this light in here, which is fantastic.
0:14:34 > 0:14:36It's a good size.
0:14:36 > 0:14:39It's fairly old and in need of a bit of playing around with, for sure.
0:14:39 > 0:14:42But, all in all, this is fantastic.
0:14:42 > 0:14:45And I love the fact you've got these patio doors
0:14:45 > 0:14:46out onto the little yard area there.
0:14:46 > 0:14:50To be honest, I don't care about the rest of the house, I already love it.
0:14:54 > 0:14:56The space inside makes up for the small garden,
0:14:56 > 0:14:59most of it taken up by this fishpond.
0:14:59 > 0:15:05But on this I'm being a bit KOI, CARPING on about its only negative!
0:15:05 > 0:15:08So, I'll carry on upstairs - while you groan.
0:15:08 > 0:15:11On the way to the first floor there's a small landing with a loo.
0:15:11 > 0:15:14Up the next flight of steps there's a large bedroom,
0:15:14 > 0:15:18flooded with light from its dual-aspect windows.
0:15:20 > 0:15:25Across the landing, there's a smaller room, but with an ensuite toilet and shower.
0:15:25 > 0:15:27And you would really be happy with that,
0:15:27 > 0:15:30in terms of the house finishing there,
0:15:30 > 0:15:34but no, it continues on, up to this extra floor on the top.
0:15:34 > 0:15:37And, it's just little things, as you walk up here,
0:15:37 > 0:15:41you notice that somebody has gone to the trouble, and time,
0:15:41 > 0:15:43and effort, and painstaking...
0:15:43 > 0:15:48oh, whatever, of actually stripping the banisters back,
0:15:48 > 0:15:51the doors have been done as well, I mean, it's just lovely.
0:15:51 > 0:15:54Practicalities, things like you've got double glazing.
0:15:54 > 0:15:57Up here, two bedrooms, one on this side,
0:15:57 > 0:15:59it's got an ensuite as well,
0:15:59 > 0:16:02it's not the most modern, but it's perfectly usable.
0:16:02 > 0:16:05And then back across the landing,
0:16:05 > 0:16:09admiring for a moment the staircase and banister,
0:16:09 > 0:16:11to the last of your bedrooms.
0:16:11 > 0:16:15Interesting little area here, obviously some kind of store area.
0:16:15 > 0:16:19A few issues, you've got these roof supports, the purlins here.
0:16:19 > 0:16:22Could be a bit of an issue, possibly something you bang your head on.
0:16:22 > 0:16:24But I love attic rooms, it's got character,
0:16:24 > 0:16:28it's got lots of light flooding in from the windows,
0:16:28 > 0:16:29things like this lovely fireplace.
0:16:29 > 0:16:32What is there not to like about this house?
0:16:32 > 0:16:35It's one of those classic cases where if you came to see this
0:16:35 > 0:16:40prior to the auction, you would see what an amazing opportunity it is.
0:16:43 > 0:16:47Yes, an opportunity to grab with both hands.
0:16:47 > 0:16:52It's structurally sound, with everything in serviceable condition,
0:16:52 > 0:16:55and space aplenty, all for a guide price of just £80,000.
0:17:01 > 0:17:04For a second opinion, we asked the auctioneer who sold it
0:17:04 > 0:17:07about the pros and cons of this three-bed,
0:17:07 > 0:17:09three-storey house in Maryport.
0:17:09 > 0:17:11I think the positives of this property
0:17:11 > 0:17:13is its proximity to the town centre.
0:17:13 > 0:17:18You wouldn't necessarily need to own a car to either own the property,
0:17:18 > 0:17:19or rent the property.
0:17:19 > 0:17:22It's very easy walking distance to the town centre
0:17:22 > 0:17:23and all its amenities.
0:17:23 > 0:17:27But does the house itself have any drawbacks?
0:17:27 > 0:17:31I think this property does lack a family bathroom,
0:17:31 > 0:17:33and as part of the refurbishment works
0:17:33 > 0:17:36you might want to consider creating a family bathroom.
0:17:36 > 0:17:38So, how do the figures look?
0:17:38 > 0:17:40First, if resold.
0:17:40 > 0:17:42I think if this property was done up,
0:17:42 > 0:17:45I think you'd probably achieve
0:17:45 > 0:17:47a figure in the region of £110,000.
0:17:47 > 0:17:51And what sort of income could you expect if it was let?
0:17:51 > 0:17:56I think you may well achieve a figure in the region of £500 per calendar month.
0:17:56 > 0:17:59Well, in case you haven't guessed it by now,
0:17:59 > 0:18:02I absolutely love this place.
0:18:02 > 0:18:05A really great auction find.
0:18:05 > 0:18:08Let's see who agreed when it went under the hammer.
0:18:12 > 0:18:15OK, we're going down to Maryport,
0:18:15 > 0:18:17well presented, large, end terrace house,
0:18:17 > 0:18:19anybody start me off at 80?
0:18:19 > 0:18:2270 then? Not going lower,
0:18:22 > 0:18:24I need 70. £70,000 seated.
0:18:24 > 0:18:27At £70,000 we're away.
0:18:27 > 0:18:28Take it in twos, if I may.
0:18:28 > 0:18:3172 anywhere? 72 I've got.
0:18:31 > 0:18:3374?
0:18:33 > 0:18:3476?
0:18:34 > 0:18:3678?
0:18:36 > 0:18:38And 80?
0:18:38 > 0:18:3982?
0:18:39 > 0:18:4084?
0:18:40 > 0:18:4386? 88?
0:18:43 > 0:18:4590?
0:18:45 > 0:18:4992? 94? Shake of the head at 94.
0:18:49 > 0:18:54At £92,000, here, I'll take in ones. 93?
0:18:54 > 0:18:5694. 95?
0:18:56 > 0:18:59Shake of the head at 95.
0:18:59 > 0:19:02At £94,000 in the front.
0:19:02 > 0:19:05At £94,000 then, for the first time.
0:19:05 > 0:19:10At 94 for the second time. Take a half, madam.
0:19:10 > 0:19:13Shake of the head. At £94,000.
0:19:13 > 0:19:17Not quite there, ladies and gentlemen, come and see us afterwards.
0:19:17 > 0:19:19As the reserve price wasn't met at the auction,
0:19:19 > 0:19:21the property didn't sell.
0:19:21 > 0:19:25But it did eventually end up with Pauline and her daughter, Becky,
0:19:25 > 0:19:28two of the original bidders.
0:19:28 > 0:19:30Pauline works at a boarding school,
0:19:30 > 0:19:33while her daughter, Becky, works in a residential home for the elderly.
0:19:33 > 0:19:36I met them at their purchase to find out more.
0:19:43 > 0:19:46- Pauline, Becky, lovely to see you both.- You too.
0:19:46 > 0:19:48I have to say, I'm a little bit surprised to see you,
0:19:48 > 0:19:51what happened there, cos I didn't think you'd got it?
0:19:51 > 0:19:53Well, we hadn't got it.
0:19:53 > 0:19:56We set ourselves a limit of 92,000,
0:19:56 > 0:20:00and we went to 93, the hammer dropped at 94.
0:20:00 > 0:20:02It didn't meet its reserve,
0:20:02 > 0:20:04the other couple disappeared,
0:20:04 > 0:20:07within ten minutes, the auctioneer's assistant came along to us
0:20:07 > 0:20:09and said would we pay 94,000 for it?
0:20:09 > 0:20:12My husband and I were discussing it and started looking at each other,
0:20:12 > 0:20:14and Becky made the decision.
0:20:14 > 0:20:17Why were you so decisive at that moment?
0:20:17 > 0:20:20No-one could make a decision, so I thought I'll make it for them.
0:20:20 > 0:20:22- We're having it.- We're having it.
0:20:22 > 0:20:26You'd looked at this, didn't you, initially, and said, "I love it".
0:20:26 > 0:20:29So, just to take a step back, why you wanted to buy it.
0:20:29 > 0:20:32Basically, an investment property.
0:20:32 > 0:20:36We want to rent it out, and have got tenants interested already.
0:20:36 > 0:20:38We hope to turn it over really fast,
0:20:38 > 0:20:42and yeah, my money in the bank was doing nothing much at all.
0:20:42 > 0:20:44- Becky had a little bit of money. - Yeah.
0:20:44 > 0:20:47- So we decided our first venture, put it together.- Yeah, first one.
0:20:47 > 0:20:48Let's try it, didn't we?
0:20:48 > 0:20:54For £94,000, I think they've got themselves a good buy-to-let here.
0:20:54 > 0:20:59Pauline and her husband already have two properties they've renovated and currently rent out.
0:20:59 > 0:21:01While for Becky, this is her first project.
0:21:04 > 0:21:06Although they live a 1½-hour drive away,
0:21:06 > 0:21:09they were attracted to Maryport through Becky's partner
0:21:09 > 0:21:11who lives in the area,
0:21:11 > 0:21:14but is that the only reason it caught Becky's eye?
0:21:14 > 0:21:17Just making a bit more money.
0:21:17 > 0:21:20My mum and dad have done it so I thought I might as well give it a go,
0:21:20 > 0:21:23- see what happens. - She thinks it works.- Yeah.
0:21:23 > 0:21:24What was it you liked about the house?
0:21:24 > 0:21:28Just the character of it, um, it's quite big itself,
0:21:28 > 0:21:31but also the layout, it's different from many other homes.
0:21:31 > 0:21:35- It's not a boring house, is it? - No, it's not a boring house.
0:21:35 > 0:21:38What do you do when you're not doing this?
0:21:38 > 0:21:40Well, I work in a boarding house, a school,
0:21:40 > 0:21:45down in Cumbria, further down, I've been there nearly 30 years.
0:21:45 > 0:21:48- Oh, congratulations.- It's something I've enjoyed doing, and you.
0:21:48 > 0:21:52- I'm a carer for the elderly in a residential home.- Oh, great, OK.
0:21:52 > 0:21:56Pauline helped put the money up for the purchase,
0:21:56 > 0:21:59but any profits made will be shared between her and Becky.
0:21:59 > 0:22:03As far as the renovation goes, it seems it's going to be a family affair.
0:22:06 > 0:22:10Us two being very amateur, we can paint and that's about it.
0:22:10 > 0:22:13We've got a son who's an electrician, a son who's a plumber.
0:22:13 > 0:22:16- Wow!- So we're going to use them, aren't we?
0:22:16 > 0:22:21Yes, this one, I think because it didn't want a lot doing to it,
0:22:21 > 0:22:24we thought, let's try it.
0:22:24 > 0:22:25Because it was going up for auction,
0:22:25 > 0:22:28it was going to happen fast for us and that's what we like.
0:22:28 > 0:22:30So tell me what you are going to do to it.
0:22:30 > 0:22:33Initially, we're going to paint through, aren't we?
0:22:33 > 0:22:35- Put a new kitchen in. - Possibly the kitchen.
0:22:35 > 0:22:37That's going to be the biggest job.
0:22:37 > 0:22:42- On the bathroom issue, there isn't a bathroom per se, is there?- No.
0:22:42 > 0:22:45- It's a bit...- There are bathrooms, but they're attached to bedrooms.
0:22:45 > 0:22:48That's it and I think the previous owners had actually
0:22:48 > 0:22:54had the smaller one with the shower room attached to a laundry room.
0:22:54 > 0:22:58Which seemed a good idea at the time but it doesn't, when you look at it,
0:22:58 > 0:23:02that would be the one that I'd do for the bathroom if I was to do it.
0:23:02 > 0:23:06But I think as it is at the moment, for a rental property,
0:23:06 > 0:23:11it's got toilets on each level and it's got everything it needs
0:23:11 > 0:23:14without having to spend a lot of money on a bathroom.
0:23:14 > 0:23:17It's a wise move, because their budget for their planned works
0:23:17 > 0:23:22is only £5,000, so a new bathroom would push it to its limits.
0:23:22 > 0:23:25They want this place earning as soon as possible
0:23:25 > 0:23:28so need to get it turned round in just a month.
0:23:28 > 0:23:32As it's Becky's first project, she's gone for the role
0:23:32 > 0:23:36of head of the decor department, so what's her vision here?
0:23:38 > 0:23:40Just warm, neutral colours.
0:23:40 > 0:23:45I'm going to do the kitchen, try and tie it in with the Aga,
0:23:45 > 0:23:47a bit of a country theme going on
0:23:47 > 0:23:51and then keep the rest of the rooms all natural and neutral.
0:23:51 > 0:23:56Congratulations. You've got yourself a corker.
0:23:56 > 0:24:00- Look forward to seeing how you do whatever you do.- That's it.
0:24:00 > 0:24:01- Watch this space.- Yep!
0:24:05 > 0:24:09Well, apart from the pond, nothing fishy about this place whatsoever.
0:24:09 > 0:24:13Just a really good purchase for Pauline and Becky.
0:24:13 > 0:24:14How will they get on sorting it out?
0:24:14 > 0:24:18Not that they're going to do a lot, but find out later in the show.
0:24:19 > 0:24:21Coming up in Wiltshire...
0:24:21 > 0:24:24If renovating an old house doesn't appeal,
0:24:24 > 0:24:26what about taking it a step further
0:24:26 > 0:24:29and buying a plot of land and building your own?
0:24:29 > 0:24:33In Cumbria, it seems that property refurbishment can for some
0:24:33 > 0:24:35be the perfect family pursuit.
0:24:36 > 0:24:39It's a whole team effort and we all enjoy doing it.
0:24:40 > 0:24:42But first, we return to Kent
0:24:42 > 0:24:45to see if property development is a step too far for Craig.
0:24:45 > 0:24:49I just thought, "wow, what have I taken on?" to be honest!
0:24:52 > 0:24:56Earlier in the programme, we were in Gillingham in Kent
0:24:56 > 0:25:00to see this mid-terrace which sold for £97,500.
0:25:00 > 0:25:03It was bought by Craig who is working as a sales coordinator
0:25:03 > 0:25:05for a satellite sports channel
0:25:05 > 0:25:08whilst taking a break from his Business Studies degree.
0:25:08 > 0:25:12With his dad's help, Craig plans to renovate the house
0:25:12 > 0:25:14and let it out to students.
0:25:14 > 0:25:18The plan is to move the bathroom into the conservatory room there.
0:25:18 > 0:25:20At the moment, that's just dead space.
0:25:20 > 0:25:23Then we're going to juggle the lounge upstairs.
0:25:23 > 0:25:26At the moment, you have to walk through someone's bedroom
0:25:26 > 0:25:28to get to your room and that's a no-no.
0:25:28 > 0:25:30- What will this room be? - This will be a bedroom as well.
0:25:32 > 0:25:33Over four months have passed
0:25:33 > 0:25:37and we've returned to Gillingham to see how Craig is progressing
0:25:37 > 0:25:40with the business of turning this two-bedroomed mid-terraced house
0:25:40 > 0:25:43into the perfect student pad.
0:25:45 > 0:25:47At the back, the garden has been cleared
0:25:47 > 0:25:51and the outside toilet has gone.
0:25:51 > 0:25:53Inside, the extra space has been put to good use.
0:25:55 > 0:25:58A new bathroom has been installed
0:25:58 > 0:26:01and the former kitchen has been transformed
0:26:01 > 0:26:03with new units and appliances.
0:26:07 > 0:26:10Along the hall to the front of the house,
0:26:10 > 0:26:13the living room is now the first of four bedrooms.
0:26:13 > 0:26:18The glass partition wall has gone, as has the fire from the fireplace.
0:26:19 > 0:26:22In the rear living room, the wood panelling has been removed
0:26:22 > 0:26:26and it has become bedroom two, adjacent to the kitchen.
0:26:26 > 0:26:28The kitchen was, believe it or not,
0:26:28 > 0:26:31one of the rooms which didn't need much complex work done to it.
0:26:31 > 0:26:34It was literally gut out the old unit that was there,
0:26:34 > 0:26:36put a new one in.
0:26:36 > 0:26:38The aim of the game was to make it really light and airy
0:26:38 > 0:26:42and I think we've done that really well. It looks great.
0:26:42 > 0:26:45It does, but has Craig managed to achieve the same standard upstairs?
0:26:46 > 0:26:50Now that he's created a brand-new bathroom on the ground floor,
0:26:50 > 0:26:53that funky pink and black bathroom upstairs
0:26:53 > 0:26:56has become bedroom number three and there's now a communal area
0:26:56 > 0:26:59made out of the original back bedroom.
0:27:01 > 0:27:03There's a further bedroom at the front
0:27:03 > 0:27:05which brings the total number of bedrooms to four,
0:27:05 > 0:27:08increasing the property's rental potential.
0:27:08 > 0:27:11But how did Craig find the refurbishment?
0:27:13 > 0:27:16It was a blast from the past. It had everything needing doing to it.
0:27:16 > 0:27:19The walls were a nightmare.
0:27:19 > 0:27:21Every room had a wall that needed doing.
0:27:21 > 0:27:24I just thought, when all the wallpaper was down
0:27:24 > 0:27:27and the plaster was bare, I just thought,
0:27:27 > 0:27:30"wow, what have I taken on?" to be honest.
0:27:30 > 0:27:33Well, it was a mid-terrace that hadn't been touched for years.
0:27:33 > 0:27:37Lots of original features and lots of problems.
0:27:39 > 0:27:42With the help of his mum and dad, the property has been resurrected,
0:27:42 > 0:27:46although they weren't always enthusiastic.
0:27:46 > 0:27:50At first they thought it was a really good investment
0:27:50 > 0:27:53and as time got on, they hated it and hated it.
0:27:53 > 0:27:56Now, they've started to see the light at the end of the tunnel
0:27:56 > 0:27:58and they love it now.
0:27:58 > 0:28:01But at what cost? Did Craig stick to his budget?
0:28:02 > 0:28:07The original budget was 5,000 to 7,000. We ended up spending 5,800.
0:28:07 > 0:28:09There's a few jobs here and there
0:28:09 > 0:28:13so the total spend will come in about six.
0:28:13 > 0:28:17Craig's Business Studies degree course is paying off.
0:28:17 > 0:28:19So, what is his tip?
0:28:19 > 0:28:22The secret is to have a dad that knows all the trades
0:28:22 > 0:28:24and can do all the work.
0:28:24 > 0:28:25My mum and dad are heroes.
0:28:25 > 0:28:27They were living on-site, I was down here every weekend.
0:28:27 > 0:28:32It was a massive slog. We had to do it. That's what keeps costs down.
0:28:32 > 0:28:34That's what you've got to do.
0:28:34 > 0:28:38Time to hear what two local estate agents think of Craig's
0:28:38 > 0:28:40and his mum and dad's hard work.
0:28:43 > 0:28:46I think the four-bedroom configurations works very, very well
0:28:46 > 0:28:48if you're aiming at a room-let market.
0:28:48 > 0:28:52Personally, I think the property has been done to a reasonable standard.
0:28:52 > 0:28:55It's magnolia, it's neutralised, it's bright, clean,
0:28:55 > 0:28:57the ceilings are clean.
0:28:57 > 0:29:01It's very typical of what you see in this kind of property.
0:29:01 > 0:29:04The accommodation is a good size.
0:29:04 > 0:29:07The smallest bedroom is very clearly a single room
0:29:07 > 0:29:10but it works very well as a four-bedroom.
0:29:10 > 0:29:14How much parental income could it produce if let to four students?
0:29:16 > 0:29:19If the property was occupied by four students,
0:29:19 > 0:29:21I'd expect the monthly income
0:29:21 > 0:29:25to be approximately £1,400-£1,500 per calendar month.
0:29:25 > 0:29:28As a student let, I think, over the 12 months,
0:29:28 > 0:29:30you'd achieve around £1,000 a month.
0:29:30 > 0:29:34Craig has already started securing tenants for his property,
0:29:34 > 0:29:37so how much rent are they willing to pay?
0:29:37 > 0:29:41I managed to get £95 a week. The first one is in the door.
0:29:41 > 0:29:43It was off plan, so it wasn't finished.
0:29:43 > 0:29:46I showed them round, told them to use their imagination.
0:29:46 > 0:29:49They saw a couple of rooms, realised it was high-quality and loved it.
0:29:49 > 0:29:53That means the four rooms he is renting out should generate
0:29:53 > 0:29:57an income of £1,520 per calendar month.
0:29:57 > 0:29:58This would give him
0:29:58 > 0:30:04an amazing annual yield of around 17.5% - incredible.
0:30:04 > 0:30:07And with a total investment, not including fees,
0:30:07 > 0:30:13of £103,500, have the changes increased its resale value too?
0:30:13 > 0:30:16I believe I could sell this property on
0:30:16 > 0:30:20for a price in the region of £115-£120,000.
0:30:20 > 0:30:23As an investment property, room lets, students,
0:30:23 > 0:30:27I would expect an astute investor to pay upwards of £145,000.
0:30:28 > 0:30:34Well, those valuations of between 115 and 145,000
0:30:34 > 0:30:41would mean a gross profit of between 11.5 and a whopping £41,500.
0:30:42 > 0:30:45145, wow, that's, that's really impressive.
0:30:45 > 0:30:49The 115, 120, that's more or less what I had valued myself,
0:30:49 > 0:30:53but 145, my dad's going to be really happy with that knowing that
0:30:53 > 0:30:55he's put a lot more value onto it.
0:30:55 > 0:30:56Brilliant. Really happy.
0:30:57 > 0:31:01Craig's confident that he can achieve a high rental income again
0:31:01 > 0:31:06on the next property he buys to convert into student accommodation.
0:31:06 > 0:31:09I know the market. I know a lot of friends that lived in the area.
0:31:09 > 0:31:11I've seen the state of their student houses.
0:31:11 > 0:31:14Therefore, I'm like the inside man in what I know and, erm...
0:31:14 > 0:31:18therefore I can bring, put my own input into it and bring it up
0:31:18 > 0:31:21to what I've done to this one, so hopefully, fingers crossed,
0:31:21 > 0:31:23I can do it to the next and next and next
0:31:23 > 0:31:26and maintain those high rents, but we'll see.
0:31:32 > 0:31:35This is Corsham in North Wiltshire
0:31:35 > 0:31:37and like many of these little historic market towns,
0:31:37 > 0:31:40it's picture-perfect.
0:31:42 > 0:31:45Road links are good too, with Chippenham and Bath
0:31:45 > 0:31:48a few miles away, so it's very practical.
0:31:50 > 0:31:54For some people, the idea of renovating an old property
0:31:54 > 0:31:58and dealing with damp - it strikes fear into their hearts.
0:31:58 > 0:32:01For them, nothing could be nicer than a brand-new home.
0:32:01 > 0:32:03So what about taking it a step further
0:32:03 > 0:32:06and buying a plot of land and building your own?
0:32:06 > 0:32:07Well, that is what we've got today.
0:32:07 > 0:32:11It's land with planning permission for a two-bedroom house
0:32:11 > 0:32:13and a guide of just 40,000.
0:32:13 > 0:32:16Now all I can see right now is this garage.
0:32:16 > 0:32:18So it must be round the back.
0:32:22 > 0:32:24It's a pretty road, just moments from Corsham itself
0:32:24 > 0:32:27but it is busier than I would have liked
0:32:27 > 0:32:31and the factory next door is not exactly quiet.
0:32:34 > 0:32:37As they so often are, the plot was created from next door's garden
0:32:37 > 0:32:40and the access is still through their back gate.
0:32:40 > 0:32:41Hmmm...
0:32:41 > 0:32:43Not very convenient.
0:32:46 > 0:32:50The garden is split down the middle and the house will retain
0:32:50 > 0:32:53its own half of land with this side being developed.
0:32:53 > 0:32:57Now, it's not a very businesslike thing to say, I know, but my first
0:32:57 > 0:33:00thoughts are it's a bit of a shame this all has to go
0:33:00 > 0:33:02because it's just beautiful.
0:33:02 > 0:33:05It's like a little oasis tucked away from the road.
0:33:05 > 0:33:07But let's be honest here,
0:33:07 > 0:33:10you've got to be a dedicated gardener to choose your roses
0:33:10 > 0:33:13over a rather large chunk of cash!
0:33:18 > 0:33:22So, I'm afraid it's goodbye garden, sad, I know,
0:33:22 > 0:33:26but the vendor will still retain a long strip of land for themselves.
0:33:26 > 0:33:29What about plans for the new property? Are they as attractive?
0:33:31 > 0:33:34I'm glad to say the house that's going to be built looks really nice.
0:33:34 > 0:33:36It's in keeping with all the others along the terrace
0:33:36 > 0:33:39and I think one of the bonuses here is it's a nice stand-alone
0:33:39 > 0:33:41detached house.
0:33:41 > 0:33:44It's got an integral garage for parking for two cars
0:33:44 > 0:33:47but I'm going to come back to that a little bit later on.
0:33:47 > 0:33:49Now the floor space downstairs looks quite generous.
0:33:49 > 0:33:53You've got a kitchen going into an open-plan living/dining room.
0:33:53 > 0:33:57You've got two bedrooms upstairs on the first floor, really nice space,
0:33:57 > 0:34:00but you've got to remember you are upstairs in the eaves
0:34:00 > 0:34:02so you will have restricted head height.
0:34:02 > 0:34:07So, overall I would say it's small, but perfectly formed.
0:34:09 > 0:34:13Well, the best things are meant to come in small packages.
0:34:13 > 0:34:15The plans look good and this property has the potential
0:34:15 > 0:34:18to become a very attractive home.
0:34:18 > 0:34:21But back to that garage.
0:34:21 > 0:34:25So, the plans include an integral garage on the ground floor.
0:34:25 > 0:34:28Normally I would question whether this was really necessary
0:34:28 > 0:34:31because I think it can eat into your living space.
0:34:31 > 0:34:36Here, however, it's crucial and was key to getting these plans passed.
0:34:36 > 0:34:38You can see in the drawings that the planners have specified
0:34:38 > 0:34:42there must be two car parking spaces for this property
0:34:42 > 0:34:45and the one next door, whilst keeping a turning circle free
0:34:45 > 0:34:49at the front, which is here for both houses.
0:34:49 > 0:34:52You cannot park in this area.
0:34:52 > 0:34:54Now, that is fine, but whoever buys this plot has
0:34:54 > 0:34:57the responsibility for all of the ground works which, when you
0:34:57 > 0:35:01take into account the demolition of that garage, it could be fiddly
0:35:01 > 0:35:05and expensive and it certainly needs to be added
0:35:05 > 0:35:06to your pre-auction budget.
0:35:10 > 0:35:13Remembering that guide price of 40,000 and with a build cost
0:35:13 > 0:35:18in the region of £80,000, depending on the specification,
0:35:18 > 0:35:23the total spend to build the proposed house would be about 120,000.
0:35:25 > 0:35:28We asked a local estate agent along to tell us what he thinks.
0:35:32 > 0:35:36Looking at the plans, I think they've done a very good job in maximising
0:35:36 > 0:35:39how much accommodation they'd get on to what is a very narrow plot.
0:35:39 > 0:35:41They've done a very good job overall.
0:35:41 > 0:35:44It's crucial they've got off-road parking because
0:35:44 > 0:35:45even though you can park on the road
0:35:45 > 0:35:49at busy times, it's a very busy road and you don't really want to leave your car on there.
0:35:51 > 0:35:54OK, let's talk figures.
0:35:54 > 0:35:57What could this plot achieve on the resale market as it is?
0:35:59 > 0:36:03I think the plot is worth something in the region of £50,000-£55,000.
0:36:05 > 0:36:09And, once the new build is complete, what could the resale value be then?
0:36:09 > 0:36:12A completed, detached two-bed house would be worth
0:36:12 > 0:36:16something in the region of £160,000-£165,000.
0:36:19 > 0:36:21What about the rental market?
0:36:21 > 0:36:23Once completed, I think the property
0:36:23 > 0:36:26would rent for something in the region of £575 per calendar month.
0:36:27 > 0:36:31It's not a totally straightforward plot but, at that guide price,
0:36:31 > 0:36:34you can afford to factor in a few complications.
0:36:34 > 0:36:37And, for somebody who is careful with the pennies,
0:36:37 > 0:36:40this plot could turn you a tidy sum.
0:36:40 > 0:36:43Let's see who swung it at the auction.
0:36:47 > 0:36:51Lot three it is, a little building plot, will you start me,
0:36:51 > 0:36:53£40,000, somebody?
0:36:53 > 0:36:5635, then, OK, at £35,000, lot three,
0:36:56 > 0:36:58that's what I'm selling the building plot at, at 35.
0:36:58 > 0:37:01With detailed planning consent. 36, 37, 38.
0:37:01 > 0:37:0639, OK, at £39,000, over there at £40,000.
0:37:06 > 0:37:11Over there at 41, at two, may I say? 42, I've got it, OK at 42.
0:37:11 > 0:37:1543, 44, 45, 46,
0:37:15 > 0:37:2047, sir. 48. 49, 50,000.
0:37:21 > 0:37:2551, 52, 55.
0:37:25 > 0:37:29If you listen to other people, 56, 57.
0:37:29 > 0:37:3458. 59. 60.
0:37:34 > 0:37:36One. Two.
0:37:37 > 0:37:4361.5? 61.5? 62, to you, sir, and a half again, sir?
0:37:43 > 0:37:48And a half? And three, sir? And a half, 3.5, 64?
0:37:50 > 0:37:52No, 63.5 there, for the first time.
0:37:52 > 0:37:54£63,000 for the second time,
0:37:54 > 0:37:59and 63.5 for the third and last time, are you done at 63.5?
0:38:00 > 0:38:04That successful bid of £63,500 was made by Sue,
0:38:04 > 0:38:08with her partner Terry doing the bidding on her behalf.
0:38:09 > 0:38:14Sue has been looking for somewhere to live locally, but a plot of land?
0:38:14 > 0:38:17I met them on it to discover how this purchase came about.
0:38:27 > 0:38:32- Guys, congratulations. I bet you're really thrilled.- Quite excited.
0:38:32 > 0:38:36So, I want to know, what's the story behind you buying this plot of land?
0:38:36 > 0:38:41I walked into the estate agents to look at a one-bedroomed cottage
0:38:41 > 0:38:44and it was a real no-no, so I went back to the office
0:38:44 > 0:38:48and I spotted this plot of land up for auction,
0:38:48 > 0:38:53the same day. And I decided on the spot, I'd like to go for this.
0:38:54 > 0:38:58Luckily for Sue, her brother's a chartered surveyor,
0:38:58 > 0:39:00so she asked him for his advice.
0:39:00 > 0:39:02Unfortunately, he didn't receive the legal pack
0:39:02 > 0:39:04in advance of the auction,
0:39:04 > 0:39:08but was able to make a few enquiries and Sue decided to go for it anyway.
0:39:08 > 0:39:11Although she loves the plot,
0:39:11 > 0:39:13she's not so enamoured with the current plans.
0:39:13 > 0:39:16The front door is situated within the garage door.
0:39:16 > 0:39:19They would prefer a walkway leading up to the property
0:39:19 > 0:39:21with the front door on the side.
0:39:21 > 0:39:24But, is there enough space for this?
0:39:24 > 0:39:27Terry was thinking of pushing the property back a little
0:39:27 > 0:39:30and I know my brother is as well.
0:39:30 > 0:39:32How would this house would benefit from that?
0:39:32 > 0:39:34Push it back and I'd rather see a double,
0:39:34 > 0:39:38two storey rather than three-storey and do away with the bottom garage.
0:39:38 > 0:39:42- So you would be happy to park your car not outside your door?- I would.
0:39:45 > 0:39:48If Sue wishes to make these changes, she'll need to reapply
0:39:48 > 0:39:52for planning permission, which will cost both time and money.
0:39:52 > 0:39:55In this situation, I think if it ain't broke, don't fix it.
0:39:59 > 0:40:02The plans do work and have been approved, so I would leave them be.
0:40:02 > 0:40:04They have a timescale of 18 months
0:40:04 > 0:40:07so there's no heavy pressure for the build to be done quickly.
0:40:09 > 0:40:13- Are you guys planning to live in this house yourselves?- Well...- No.
0:40:13 > 0:40:16Oh! Wait a minute! So, a "well", and a "no"!
0:40:16 > 0:40:20So now are you doing this for the sake of a development project?
0:40:20 > 0:40:22- Yes, we're doing this as a business. - Probably, yes.
0:40:25 > 0:40:28Sue's funding the project from the proceeds of selling her property,
0:40:28 > 0:40:31but do they think there's much profit to be made here?
0:40:33 > 0:40:37If a one-bedroom flat in Corsham is selling for 130,
0:40:37 > 0:40:42she's spent 63 on this up to now and if the build comes to 100,
0:40:42 > 0:40:47that's 163 - houses are selling here for 210 up the road.
0:40:49 > 0:40:51Hmmm, I think those figures are a bit too high.
0:40:51 > 0:40:55More worryingly, Sue's not keen on renting the property out
0:40:55 > 0:40:57due to a bad experience in the past.
0:40:57 > 0:41:01So they don't have a plan B if they can't sell the property on.
0:41:03 > 0:41:06If Sue's intent on reapplying for planning,
0:41:06 > 0:41:10she'll have two add more to her 80,000-£100,000 budget.
0:41:10 > 0:41:14But, her brother and Terry will be working for free,
0:41:14 > 0:41:17which will certainly help.
0:41:17 > 0:41:20I've got to say, it's no laughing matter. She has spent £63,000 here.
0:41:20 > 0:41:23That's your life savings. You've put all the money you have into this.
0:41:23 > 0:41:26This has got to work out for you, Sue.
0:41:26 > 0:41:28It's got to work out,
0:41:28 > 0:41:30so we'll all pull together and make sure it works.
0:41:30 > 0:41:33- Good luck with this. - Thank you very much.
0:41:33 > 0:41:36And I hope you don't have any problems and it all works out.
0:41:36 > 0:41:39- Thank you, Lucy.- Thank you so much. - Cheers, Lucy, thank you.
0:41:41 > 0:41:44I've got to say, I am worried about this project.
0:41:44 > 0:41:47Sue and Terry have taken on a development that's unlikely
0:41:47 > 0:41:49to make any money, at least in the short term.
0:41:49 > 0:41:50And with no plan B,
0:41:50 > 0:41:54it means that my nails are going to be bitten down to the quick.
0:41:54 > 0:41:57You can find out how it all goes later on in the show.
0:42:00 > 0:42:05Well, time has passed. Let's hope that money has been well spent.
0:42:05 > 0:42:06It will be great
0:42:06 > 0:42:10if all those wonderful-sounding plans have worked out.
0:42:10 > 0:42:11Let's go back and find out.
0:42:13 > 0:42:19We head back now to the Cumbrian coastal town of Maryport,
0:42:19 > 0:42:22where mother-and-daughter team, Pauline and Becky,
0:42:22 > 0:42:27bought this imposing three-storey, three-bedroom house for £94,000.
0:42:27 > 0:42:31They didn't make a successful bid in the auction itself,
0:42:31 > 0:42:35as it didn't reach its reserve price, but acquired it afterwards.
0:42:35 > 0:42:37But, while Mum and Dad hummed and hah-ed about it,
0:42:37 > 0:42:40Becky plunged in and took up the offer.
0:42:41 > 0:42:43Why were you so decisive at that moment?
0:42:43 > 0:42:46No-one could make a decision so I thought, I'll make it for them.
0:42:46 > 0:42:48We're having it!
0:42:49 > 0:42:53You'd looked at it with us initially and said, "I love it".
0:42:53 > 0:42:56This was to be daughter Becky's first project,
0:42:56 > 0:43:00and she couldn't have picked a better one to start with.
0:43:00 > 0:43:03Everything was in good condition and full working order.
0:43:03 > 0:43:05All it needed was a bit of freshening up.
0:43:05 > 0:43:07Well, 2½ months later,
0:43:07 > 0:43:10we returned to see if that's what's been achieved.
0:43:15 > 0:43:19Inside, the biggest changes have been made to the kitchen,
0:43:19 > 0:43:21where the tired, outdated units have made way
0:43:21 > 0:43:24for something much more stylish and contemporary.
0:43:27 > 0:43:30Through to the dining room, which has been given a lick of paint
0:43:30 > 0:43:34and some accessories to make it look more homely.
0:43:35 > 0:43:38The main living room is still looking grand,
0:43:38 > 0:43:40but has been dressed to give it a more lived-in feel.
0:43:42 > 0:43:45Becky was unable to be there on the day, but Pauline was on hand
0:43:45 > 0:43:49to show us around, starting with the new kitchen.
0:43:50 > 0:43:53This is the room I'm most pleased with
0:43:53 > 0:43:56and the one we've done most work in, to be honest.
0:43:56 > 0:43:59It was a bit of a mismatch, not a pretty kitchen, and it's not
0:43:59 > 0:44:03a very square sort of kitchen, a lot of difficult angles
0:44:03 > 0:44:07and what have you, but there was a fridge-freezer over there
0:44:07 > 0:44:10which has gone, and some mismatched units round it,
0:44:10 > 0:44:14so we took the whole thing out and put a fresh, white kitchen in
0:44:14 > 0:44:17and I'm very pleased with how it's turned out.
0:44:17 > 0:44:21We finished it off with tiling it and, as I say, I like it very much.
0:44:21 > 0:44:23It's a good addition to the house.
0:44:26 > 0:44:29Upstairs on the middle floor, removing the mirrored wardrobes
0:44:29 > 0:44:34has opened up the main bedroom and revealed a lovely period fireplace.
0:44:35 > 0:44:37And, with the walls redecorated,
0:44:37 > 0:44:41this double-aspect room is just bathed in light.
0:44:41 > 0:44:44Across the landing, there's been little change
0:44:44 > 0:44:47apart from a coat of paint in the shower room.
0:44:47 > 0:44:49On the top floor, a spot of redecoration
0:44:49 > 0:44:51highlighted the period features,
0:44:51 > 0:44:54such as the fireplace and roof beams.
0:44:54 > 0:44:57But that's not all that came to light during the work.
0:44:58 > 0:45:01In here there's been quite a lot of changes, to be honest with you.
0:45:01 > 0:45:03There was a walk-in storage area.
0:45:03 > 0:45:07It was taking up too much room, so we took all that down.
0:45:07 > 0:45:10Once we took that down, we realised there was a damp area there,
0:45:10 > 0:45:11so we addressed that.
0:45:11 > 0:45:14And then we realised further on there was no insulation,
0:45:14 > 0:45:18so it was absolutely freezing, so we addressed that straight away.
0:45:18 > 0:45:22New plasterboard, new roofing, and painted it.
0:45:22 > 0:45:25And as you can see, it turned out really nice
0:45:25 > 0:45:27and I'm really pleased with it.
0:45:27 > 0:45:30That was the only surprise in the whole project.
0:45:30 > 0:45:32Once a roofer fixed the leak,
0:45:32 > 0:45:34Pauline got on with repairing the damage,
0:45:34 > 0:45:36which wasn't straightforward.
0:45:36 > 0:45:38They're not sort of square rooms.
0:45:38 > 0:45:42They're at awful angles, and I remember holding the plasterboard and what have you
0:45:42 > 0:45:46and struggling with my husband. A few choice words came out!
0:45:46 > 0:45:50But yes, we got there, and it's worth it in the end,
0:45:50 > 0:45:51when you look at it, yes.
0:45:51 > 0:45:56The other attic room was freshened up in exactly the same style.
0:45:56 > 0:45:58The changes here have all been for the better,
0:45:58 > 0:46:04and with the carpets cleaned throughout and the electrics and plumbing checking out fine,
0:46:04 > 0:46:08this has been a largely cosmetic exercise apart from the kitchen and attic room.
0:46:08 > 0:46:11Ideal for a first timer.
0:46:11 > 0:46:14Becky, she's been a big part of the project.
0:46:14 > 0:46:18It's been her first project. We've let her take control, if you will, of it.
0:46:18 > 0:46:20She could've soon got carried away with things that she likes
0:46:20 > 0:46:23and colours that she likes and real big changes,
0:46:23 > 0:46:26but we've had to sort of bring her back down to earth a little bit
0:46:26 > 0:46:29and say, you know, it is a rental property. But she's kept it on course,
0:46:29 > 0:46:32So she's been a big part of this project.
0:46:32 > 0:46:35It is always a temptation for first-time developers
0:46:35 > 0:46:37to splash the cash needlessly,
0:46:37 > 0:46:41though fortunately Becky has had Pauline on hand
0:46:41 > 0:46:43to guide her through the pitfalls.
0:46:43 > 0:46:45But it wasn't just down to the pair of them.
0:46:45 > 0:46:47So did other family members help?
0:46:47 > 0:46:49All the family has been in.
0:46:49 > 0:46:52My son's an electrician who's done the electrical work.
0:46:52 > 0:46:54My son that was home from Australia
0:46:54 > 0:46:57actually came and did some of the painting as well.
0:46:57 > 0:47:00And my daughter and myself have done the painting, the decoration,
0:47:00 > 0:47:04the bits of finishing off. The good bits!
0:47:04 > 0:47:06It's all helped to keep their costs down,
0:47:06 > 0:47:09with the spend on this renovation coming in
0:47:09 > 0:47:13under their £5,000 budget at £4,500.
0:47:15 > 0:47:18Add that to the £94,000 purchase price
0:47:18 > 0:47:21and their total outlay is 98,500,
0:47:21 > 0:47:26and it seems they're poised to earn some of that investment back.
0:47:26 > 0:47:30We have got tenants coming in two days' time,
0:47:30 > 0:47:34a lovely family, a Scottish family who want to move to Maryport,
0:47:34 > 0:47:37so yeah, a long-term let.
0:47:37 > 0:47:39That's the plans for it at the moment.
0:47:41 > 0:47:46But have Pauline and Becky got the best out of this house?
0:47:46 > 0:47:48We asked two local property experts
0:47:48 > 0:47:53what they think of this £98,500 investment.
0:47:54 > 0:47:56I'm delighted with the results of this property.
0:47:56 > 0:47:59I think they've brightened it up really well.
0:47:59 > 0:48:01I think the decoration they've carried out
0:48:01 > 0:48:02has made it light and airy.
0:48:02 > 0:48:07The biggest work they've carried out, of course, is in the kitchen area.
0:48:07 > 0:48:10It's now providing a great living space with a dining area
0:48:10 > 0:48:13which flows very well into the kitchen.
0:48:13 > 0:48:19I think it's a fabulous property. Nice big, light, bright, airy family home.
0:48:19 > 0:48:21I really love this kitchen.
0:48:21 > 0:48:22It suits my personal taste
0:48:22 > 0:48:25and I think it's really going to suit a lot of families.
0:48:25 > 0:48:26A really sociable living space.
0:48:28 > 0:48:31So the experts like the improvements.
0:48:31 > 0:48:33But with the property on a long-term let,
0:48:33 > 0:48:38have Pauline and Becky got the best rental return possible here?
0:48:38 > 0:48:41I think if this property was exposed to the rental market,
0:48:41 > 0:48:44you would achieve a figure of around £450 per calendar month.
0:48:44 > 0:48:49Rental-wise, probably in the region of £450 per calendar month.
0:48:49 > 0:48:52Yeah, about what we thought. Yeah, we're happy with that.
0:48:52 > 0:48:55We've actually got a little bit more, 475, on the top end of it.
0:48:55 > 0:49:00That rental income of £475 per calendar month
0:49:00 > 0:49:03would see the pair reap an annual yield of around 6%.
0:49:03 > 0:49:07And if they decide to sell,
0:49:07 > 0:49:10the experts reckon they could achieve between £110,000 and £115,000,
0:49:10 > 0:49:14giving themselves a potential pre-tax profit
0:49:14 > 0:49:19of between 11,500 and 16,500.
0:49:19 > 0:49:23But the plan for now is to have the property earning a steady income
0:49:23 > 0:49:27and keep this as a long-term investment.
0:49:27 > 0:49:32Pauline, Becky and the family are already eyeing up their next move.
0:49:36 > 0:49:40Going to the next option. I think we've got the bug.
0:49:40 > 0:49:42Yeah, we love it, all of us.
0:49:42 > 0:49:46It's a whole team effort, and we all enjoy doing it.
0:49:51 > 0:49:54Earlier in the programme, we were in the Wiltshire town of Corsham,
0:49:54 > 0:49:58where the garden behind this garage was sold as a building plot
0:49:58 > 0:50:00for £63,500.
0:50:01 > 0:50:07It wasn't just the land. There was planning permission to demolish the garage
0:50:07 > 0:50:10and build a three-storey, two-bedroom house.
0:50:10 > 0:50:14It was bought by Sue, and came as a surprise to her partner Terry,
0:50:14 > 0:50:18as she'd originally been seeking something else.
0:50:18 > 0:50:23I walked into the estate agents to look at a one-bedroomed cottage.
0:50:23 > 0:50:26It was a real no-no, so I went back to the office
0:50:26 > 0:50:29and I spotted this plot of land up for auction, the same day.
0:50:29 > 0:50:34And I decided on the spot I'd like to go for this.
0:50:34 > 0:50:39The plans that had been passed required the house to be built in 18 months,
0:50:39 > 0:50:45and stipulated there had to be parking for two cars and a turning area at the front.
0:50:46 > 0:50:51But Terry had a different idea and wanted to resubmit the plans.
0:50:51 > 0:50:55Terry's thinking of pushing the property back a little.
0:50:55 > 0:50:58So how do you think this house would benefit from that?
0:50:58 > 0:51:01Push it back and I'd rather see a double, a two-storey then a three-storey,
0:51:01 > 0:51:03and do away with the bottom garage.
0:51:03 > 0:51:06Well, it's now two years and five months later
0:51:06 > 0:51:11and we've come back to see how things have turned out.
0:51:13 > 0:51:16Well, the garage has been demolished
0:51:16 > 0:51:19and there are signs of some ground work.
0:51:21 > 0:51:24At the back, the garden has been cleared
0:51:24 > 0:51:28and a new fence separates the building plot from the neighbouring property.
0:51:28 > 0:51:33But there's no sign of a house at the front of the plot...
0:51:33 > 0:51:35..or the rear.
0:51:39 > 0:51:43But as Sue explains, there have been some unfortunate delays.
0:51:44 > 0:51:47In the original contract,
0:51:47 > 0:51:51it said that I had to build within 18 months of buying the plot.
0:51:51 > 0:51:54Unfortunately, I became very ill
0:51:54 > 0:51:58and everything was put on hold.
0:51:58 > 0:52:02A new build can be very difficult and challenging at the best of times.
0:52:02 > 0:52:08But Sue's illness meant that this one was an even bigger challenge.
0:52:08 > 0:52:12So what exactly have Sue and Terry managed to do?
0:52:12 > 0:52:17We've put all this fence in along here. We've removed different trees out.
0:52:17 > 0:52:20So we've done quite a bit of ground work ourselves,
0:52:20 > 0:52:24but we had main contractors in to come and clear this double garage.
0:52:24 > 0:52:30They sensibly employed experts to remove it, as it contained asbestos.
0:52:30 > 0:52:34But what about the proposed changes to the plans for the house?
0:52:34 > 0:52:37The plans were changed slightly.
0:52:37 > 0:52:41Not a great deal, because what we did was
0:52:41 > 0:52:44we tried to cut down on the timber,
0:52:44 > 0:52:46the amount of timber in the loft,
0:52:46 > 0:52:49because there was an excessive amount of timber.
0:52:49 > 0:52:53So what we've done is we've installed an A-frame on the plans,
0:52:53 > 0:52:57which cuts down on the costs of the timber.
0:52:57 > 0:53:01But sadly the only timber that's been bought so far
0:53:01 > 0:53:05has been for the fence, and the plot is without that planned A-frame.
0:53:05 > 0:53:08Parking also proved to be an issue,
0:53:08 > 0:53:13as they'd missed the fact that there had to be a turning area at the front.
0:53:13 > 0:53:15That was the main issue,
0:53:15 > 0:53:19but we tried to get that changed and regulated and we couldn't.
0:53:26 > 0:53:29Sue paid £63,500 for the plot.
0:53:31 > 0:53:35Her brother's a surveyor and has helped her with her planning appeals.
0:53:35 > 0:53:37How much has she had to spend?
0:53:39 > 0:53:45Roughly, including buying the plot, it's cost me about 87,000.
0:53:46 > 0:53:51That's a whopping £23,500 on top of the purchase price,
0:53:51 > 0:53:54and still no house to show for it.
0:53:54 > 0:53:56With her ill health
0:53:56 > 0:53:59and the difficulty she's faced trying to amend the plans,
0:53:59 > 0:54:04Sue's now decided to sell the plot on, with the planning permission.
0:54:04 > 0:54:06So how has that gone?
0:54:06 > 0:54:11I've sold it for 62,500, and it's cost me about 87.
0:54:11 > 0:54:13I just fell in love with the plot.
0:54:13 > 0:54:17It's a beautiful plot, and so, you know,
0:54:17 > 0:54:20me and my finer wisdom went ahead,
0:54:20 > 0:54:23much against Terry's better judgement.
0:54:24 > 0:54:30This has been an unhappy venture for Sue, with a loss of £24,500.
0:54:30 > 0:54:32So after this experience,
0:54:32 > 0:54:37what would Terry's advice be to anybody tempted to buy a plot of land?
0:54:37 > 0:54:42You've got to look and make sure you've gone through the plans
0:54:42 > 0:54:44and everything before you buy.
0:54:44 > 0:54:47The small print is very important on a plot.
0:54:47 > 0:54:49That's really good advice.
0:54:49 > 0:54:51But what's the future now for this land?
0:54:51 > 0:54:57We asked two local estate agents to give us their thoughts on the plot,
0:54:57 > 0:54:59first in its current condition.
0:54:59 > 0:55:02In the last 2½ years, a few things have changed,
0:55:02 > 0:55:04but obviously not a lot.
0:55:04 > 0:55:06The garage has come down, the fence has come up,
0:55:06 > 0:55:08but aside from that, it's still as is, really.
0:55:08 > 0:55:12I understand part of the planning provision was that there has to be parking allocated to a neighbour
0:55:12 > 0:55:15as well as turning space. But that will restrict, I think,
0:55:15 > 0:55:18space on the plot. And that won't be for everybody.
0:55:18 > 0:55:20Usually with building plots, they do tend to get on with it
0:55:20 > 0:55:23especially seeing as it's a lot of money involved
0:55:23 > 0:55:26and they'd like to get their money back, ideally. I think it's a difficult plot,
0:55:26 > 0:55:31'but I think it's the best she can do with the actual terrain and the layout of it.'
0:55:31 > 0:55:35How much could the house be worth once it's built?
0:55:35 > 0:55:38Once the property's built, in today's market,
0:55:38 > 0:55:43I would expect it would have sales figure of around £170,000 to £175,000.
0:55:43 > 0:55:48I would see the value being around about £200,000 to £205,000.
0:55:49 > 0:55:53If Sue had continued with the build, there could have been
0:55:53 > 0:55:54some profit here.
0:55:54 > 0:55:57But are they the figures she anticipated?
0:55:57 > 0:56:00I would've thought right from the beginning 205,000 to 210,000,
0:56:00 > 0:56:04because this is Corsham, and that has a premium on it.
0:56:04 > 0:56:07So I'm not surprised.
0:56:07 > 0:56:10What about the current value of the land?
0:56:10 > 0:56:16Is the £62,500 that Sue sold it for in line with market prices?
0:56:17 > 0:56:22I think the building plot at present is worth in the region of £60,000.
0:56:22 > 0:56:24If they were to sell the plot as it is,
0:56:24 > 0:56:27I would see the value being around about £60,000 to £65,000.
0:56:27 > 0:56:30Well, at least she sold at the right price.
0:56:30 > 0:56:34But overall, she still made a substantial loss.
0:56:34 > 0:56:36How does she feel about that?
0:56:37 > 0:56:41I mean, I have lost a lot of money. But hey-ho, you know.
0:56:42 > 0:56:45It's yesterday. Tomorrow's another day.
0:56:47 > 0:56:49Well, that's it for now.
0:56:49 > 0:56:53Did we inspire you or put you off trying it for yourself?
0:56:53 > 0:56:56We'll have more properties for you next time on Homes Under The Hammer.
0:56:56 > 0:56:58- We'll see you then.- Goodbye.
0:57:19 > 0:57:21Subtitles by Red Bee Media Ltd