0:00:00 > 0:00:04Hello. Lucy and I find property completely absorbing.
0:00:04 > 0:00:06But in order to do well,
0:00:06 > 0:00:08you must make sure you buy at the right price.
0:00:08 > 0:00:13One way you may be able to do that is to buy your next home under the hammer.
0:00:38 > 0:00:41You do need to do your homework before you buy at auction
0:00:41 > 0:00:43but once you're sure of what you want,
0:00:43 > 0:00:45you could bag yourself a bargain.
0:00:45 > 0:00:49I wonder if any of today's properties turned out to be great deals.
0:00:49 > 0:00:50Here's what was bought.
0:00:51 > 0:00:54There are no complaints from me
0:00:54 > 0:00:57about the cleanliness of this house in Warrington, Cheshire.
0:00:57 > 0:01:00Look, you could eat your dinner off of there!
0:01:01 > 0:01:07Whereas in Workington, Cumbria, it's not food but drink that interests me.
0:01:07 > 0:01:10You've got your own bar - fantastic!
0:01:13 > 0:01:17Having found the location of this property in Tunbridge Wells in Kent,
0:01:17 > 0:01:21all I have to do is try and find a way in.
0:01:23 > 0:01:26All of these properties went to auction and we'll find out
0:01:26 > 0:01:28who bought them and what they paid for them
0:01:28 > 0:01:30when they went under the hammer.
0:01:30 > 0:01:31There you go!
0:01:36 > 0:01:39I'm in Cheshire today. Warrington, to be exact.
0:01:39 > 0:01:42It has a fabulous grade one listed town hall,
0:01:42 > 0:01:45the famous River Mersey passes through it
0:01:45 > 0:01:48and there are great transport links to Liverpool and Manchester.
0:01:48 > 0:01:52It's also home of the rugby league team known as the Warrington Wolves
0:01:52 > 0:01:56and I'm here to hunt down a property that was snapped up at auction.
0:02:01 > 0:02:03And here it is.
0:02:03 > 0:02:08It's a three bedroomed terraced property and the guide - £55,000.
0:02:08 > 0:02:13There's a house on this road on the market for just under £85,000.
0:02:13 > 0:02:15Money to be made? Hopefully.
0:02:16 > 0:02:19Initial signs are promising.
0:02:19 > 0:02:23Decent roof, double glazing and a good position.
0:02:23 > 0:02:26It could do with a little tidy up but that's fine.
0:02:26 > 0:02:29We don't want it perfect, we need to be able to add value.
0:02:31 > 0:02:35The first thing that strikes me is the feeling of space.
0:02:35 > 0:02:39It's really big in here, but it's terribly dated.
0:02:39 > 0:02:41You have polystyrene tiles, old-fashioned wallpaper.
0:02:41 > 0:02:44You may want to replace this with something a little more modern.
0:02:44 > 0:02:47The good news is, I can't smell damp,
0:02:47 > 0:02:50it's clean as a whistle in here.
0:02:50 > 0:02:53Look at the size of this kitchen.
0:02:53 > 0:02:57Again, look, you could eat your dinner off of there!
0:02:57 > 0:03:01It's a fabulous little house but I'd like to think about rearranging it
0:03:01 > 0:03:05because I'd like to get a table in here so you could sit down and eat.
0:03:05 > 0:03:08I'd probably want to move this doorway along,
0:03:08 > 0:03:11get rid of some of this because then you can close the door
0:03:11 > 0:03:14and there's enough space in the corner
0:03:14 > 0:03:16for a family to sit down and enjoy their meal.
0:03:16 > 0:03:19All in all, a fantastic little house for the guide price.
0:03:20 > 0:03:25Yes, at what was a £55,000 guide price, this really could be a gem.
0:03:25 > 0:03:28Potentially a nice project for someone.
0:03:32 > 0:03:36Upstairs, the three bedrooms just need redecorating,
0:03:36 > 0:03:40re-carpeting and maybe a bit of plastering here and there.
0:03:46 > 0:03:49As for the bathroom, as far as I'm concerned,
0:03:49 > 0:03:52it should always be a white suite.
0:03:52 > 0:03:55Mind you, I'd like to see a bit more green outside.
0:03:55 > 0:03:56If you love the house
0:03:56 > 0:03:59but you're a bit disappointed with the concrete paving slabs,
0:03:59 > 0:04:02don't be, because the other side of this fence
0:04:02 > 0:04:05is a pretty little green garden.
0:04:06 > 0:04:09Though it's not a thrilling space, it's pretty low maintenance
0:04:09 > 0:04:13and it's always lovely to have somewhere to sit outside and chill.
0:04:15 > 0:04:17It was all so tranquil.
0:04:17 > 0:04:18TRAIN THUNDERS PAST
0:04:18 > 0:04:21That shattered the illusion, didn't it?
0:04:25 > 0:04:28Oh no, not so great.
0:04:28 > 0:04:30Thank goodness the house has double glazing.
0:04:32 > 0:04:35I'm afraid there's another fly in the ointment
0:04:35 > 0:04:39and it comes in the form of a flying freehold.
0:04:39 > 0:04:42This alleyway is supposed to run to this property's garden
0:04:42 > 0:04:45and the neighbouring garden but at the moment,
0:04:45 > 0:04:48it only runs to the neighbouring property.
0:04:48 > 0:04:52This means that this part of the house is in legal limbo
0:04:52 > 0:04:55and worryingly, it can scare mortgage companies off
0:04:55 > 0:04:59so I would definitely make sure my solicitor looked into this
0:04:59 > 0:05:01before going to the auction.
0:05:01 > 0:05:04It's worth making some noise about this issue.
0:05:04 > 0:05:08It's not uncommon but it can be a bit of a legal tangle.
0:05:12 > 0:05:16What does the local estate agent make of this property?
0:05:17 > 0:05:19First impressions of the property are good,
0:05:19 > 0:05:21it's a reasonable sized family home.
0:05:21 > 0:05:24Definitely needs some work but it's a good solid family home.
0:05:24 > 0:05:26What about the flying freehold
0:05:26 > 0:05:29and the full-sized train set at the bottom of the garden?
0:05:29 > 0:05:34The train line is not going to help but it shouldn't hold up any sale.
0:05:34 > 0:05:36There is a flying freehold with the property,
0:05:36 > 0:05:40a ginnel that's shared with the next door property.
0:05:40 > 0:05:44It does pose some slight drawbacks, when you come to get finance,
0:05:44 > 0:05:47but that is something you would factor in with the cost.
0:05:47 > 0:05:51So with regard to prices, what kind of value could this achieve
0:05:51 > 0:05:56if fully refurbished and put on the rental or resale market?
0:05:56 > 0:05:57Once this property is renovated,
0:05:57 > 0:06:01I'd look to put this property on the market at around £80,000.
0:06:01 > 0:06:05If we were going to rent this property out, once renovated,
0:06:05 > 0:06:07I'd expect to achieve £550 per calendar month.
0:06:08 > 0:06:12Some will be put off by the train track at the end of the garden
0:06:12 > 0:06:15and others will view that flying freehold with suspicion.
0:06:15 > 0:06:20Someone wasn't deterred. Let's find out who that was as we go to auction.
0:06:23 > 0:06:26Three bedroom, what's this one worth?
0:06:26 > 0:06:30Who's going to give me £50,000? That's too high for you.
0:06:30 > 0:06:32Start me off at £40,000. We're away.
0:06:32 > 0:06:37£40,000, do we see 42? 42,000.
0:06:37 > 0:06:39At 44,000 seated. 46?
0:06:41 > 0:06:4548,000. Round it up to £50,000.
0:06:47 > 0:06:49Yes, that's your bid at 50,000.
0:06:49 > 0:06:5252, 54?
0:06:54 > 0:06:5753? 52,500.
0:06:57 > 0:07:01I'll do the same for you, 53? 53,500.
0:07:01 > 0:07:0354. 54,500.
0:07:03 > 0:07:07At 54,500, are we done?
0:07:07 > 0:07:09No, at 55.
0:07:09 > 0:07:1255,500, you're shaking your head.
0:07:12 > 0:07:15At £55,000, it's the guide at 55.
0:07:15 > 0:07:1755,500, new bid.
0:07:17 > 0:07:2156. 56 at the front.
0:07:21 > 0:07:2656,500, sir? 56,500.
0:07:26 > 0:07:2957? Your choice. 57,500? You're shaking your head.
0:07:29 > 0:07:33At £57,000 for the first time, second time
0:07:33 > 0:07:36the third and final time at £57,000.
0:07:36 > 0:07:38There you go.
0:07:38 > 0:07:41At 57,000, just £2,000 over the guide price,
0:07:41 > 0:07:44the three-bedroom terrace in Warrington
0:07:44 > 0:07:46was bought by local man, Mark.
0:07:46 > 0:07:48He's married with three young kids.
0:07:48 > 0:07:51After leaving his job as a cabin crew manager for an airline,
0:07:51 > 0:07:53he's now looking for a change in career,
0:07:53 > 0:07:55back on terra firma.
0:08:05 > 0:08:08Did you ever think you'd get this on auction day?
0:08:08 > 0:08:10I didn't, I was so nervous.
0:08:10 > 0:08:13I've done an awful lot of things before
0:08:13 > 0:08:17but going along to the auction was like nothing I'd ever experienced.
0:08:17 > 0:08:18It really wasn't.
0:08:18 > 0:08:21I only actually viewed this property on the morning of the auction
0:08:21 > 0:08:24so at 11.00 I was here having a look
0:08:24 > 0:08:26and at 1.00, I was bidding on it. Wow!
0:08:26 > 0:08:29It almost felt like it was fated
0:08:29 > 0:08:32because when I went to the auction, I had paddle number 18
0:08:32 > 0:08:36and this was lost 18 and I thought, it has got to happen.
0:08:36 > 0:08:39So, when the hammer went down and it was yours, how did you feel?
0:08:39 > 0:08:42I was elated and I was little bit nervous beforehand
0:08:42 > 0:08:46because I thought, I'm going to have to restrain myself
0:08:46 > 0:08:49because as soon as he goes, third and final time, it's yours,
0:08:49 > 0:08:51I was going to jump up and go, yes, yes, fantastic!
0:08:51 > 0:08:55People have done that and people do do that.
0:08:55 > 0:08:57I managed to restrain myself, obviously.
0:09:05 > 0:09:07It's great that he's got it
0:09:07 > 0:09:11but why was he so excited about buying this particular house?
0:09:13 > 0:09:15We only live about ten minutes away from here
0:09:15 > 0:09:17so it's nice and easy and convenient for me to get to
0:09:17 > 0:09:20and to monitor and keep an eye on.
0:09:20 > 0:09:22The actual house itself, it's looking tired, definitely
0:09:22 > 0:09:26but it has the cavity walls, the double glazing and the boiler.
0:09:26 > 0:09:30It just has everything about it. It needs a tidy up.
0:09:30 > 0:09:33The kitchen's looking really tired.
0:09:33 > 0:09:35The bathroom, very dated, will need replacing,
0:09:35 > 0:09:37but the basics are there and that's what I thought.
0:09:37 > 0:09:39What's your budget for the work?
0:09:39 > 0:09:43In total, I'm looking at spending around £6,000.
0:09:43 > 0:09:47There might not be an enormous amount to do to this place
0:09:47 > 0:09:49but £6,000 is still quite tight.
0:09:49 > 0:09:54I think it will need a fair amount of input from Mark to keep that budget in check
0:09:54 > 0:09:57and he hopes to get it all finished in just 6-8 weeks.
0:09:57 > 0:10:00Have you ever done anything like this before and are you handy?
0:10:00 > 0:10:02I am quite a handy chap, to be honest.
0:10:02 > 0:10:06In this house, I'm looking at doing everything as much as I can,
0:10:06 > 0:10:08really, to be honest. If it needs any plastering, I can do that.
0:10:08 > 0:10:12I can certainly do all the legwork and the painting, decorating.
0:10:12 > 0:10:15I can fit the kitchen, the bathroom, but it's not anything
0:10:15 > 0:10:20that I've done before on this type of level, to be perfectly honest.
0:10:20 > 0:10:24My background, I used to work for an airline, that's what I did.
0:10:24 > 0:10:27- I was a cabin crew manager for an airlines.- Really, for how many years?
0:10:27 > 0:10:31I did that for 12 years in total so it was quite a long time.
0:10:31 > 0:10:35Then this year... I've got quite a big birthday coming up this year.
0:10:35 > 0:10:38- Ah, have you?- Turning 40.- 40!
0:10:38 > 0:10:40It just felt time
0:10:40 > 0:10:43for me to do something different, really, to be honest.
0:10:47 > 0:10:50So it's a big change of direction for Mark
0:10:50 > 0:10:52but something he's obviously looking forward to.
0:10:52 > 0:10:55He plans to let the house, so for the moment,
0:10:55 > 0:10:59he's not overly concerned about the flying freehold or the trains,
0:10:59 > 0:11:03but he has a young family so does need to make this venture work.
0:11:07 > 0:11:09What did the family think of this venture?
0:11:09 > 0:11:12My wife hasn't even seen inside the house, to be honest.
0:11:12 > 0:11:16It was me that went along and decided to buy it
0:11:16 > 0:11:18and I sort of phoned her up while she was at work and said,
0:11:18 > 0:11:21"You'll never guess what? "What?" "I've just bought a house."
0:11:21 > 0:11:23She didn't know anything about it!
0:11:23 > 0:11:25She knew that I'd been looking at it
0:11:25 > 0:11:27and she knew that I was thinking about it
0:11:27 > 0:11:29but when I actually went along and bought it,
0:11:29 > 0:11:32it was a bit of a shock to her, to be honest.
0:11:32 > 0:11:36But it's been nice because I've been so focused on my career
0:11:36 > 0:11:39and working long hours and everything for the last 12 years or so,
0:11:39 > 0:11:41and it's been nice to be able to spend
0:11:41 > 0:11:43that little bit more time with the family.
0:11:43 > 0:11:46The ideal thing about this is I can work on this during the day,
0:11:46 > 0:11:50maybe the odd weekend, but I'm still coming home every night to the family
0:11:50 > 0:11:53and to the kids, so it's ideal.
0:11:53 > 0:11:56Well, good luck with this venture. I really hope it works out for you
0:11:56 > 0:11:58and it's been great meeting you today.
0:11:58 > 0:12:00It's really nice meeting you. Thank you.
0:12:00 > 0:12:03Ex-cabin crew manager Mark purchased a property
0:12:03 > 0:12:06with a flying freehold. What are the chances of that?
0:12:06 > 0:12:08I hope he manages to resolve that issue
0:12:08 > 0:12:12and I also hope he successfully renovates this house.
0:12:12 > 0:12:15Will that modest budget see this house take off
0:12:15 > 0:12:18or will it be a series of delays and cancellations?
0:12:18 > 0:12:21You can find out how he gets on later in the programme.
0:12:25 > 0:12:2722 miles south-west of Carlisle in Cumbria
0:12:27 > 0:12:31is the former industrial town of Workington.
0:12:31 > 0:12:35It used to be the biggest railway track manufacturer in the world
0:12:35 > 0:12:40and it was said that Workington rails held the world together.
0:12:40 > 0:12:45So let's hope I'm on the right track to find a property bargain.
0:12:45 > 0:12:48Today, I'm in the north side of Workington
0:12:48 > 0:12:51in a really close-knit community.
0:12:51 > 0:12:56Great local amenities, good school, perfect. What am I here to see?
0:12:56 > 0:12:58It's this. A three-bedroom semi-detached.
0:12:58 > 0:13:01Great news, it's actually a corner plot so good sized gardens.
0:13:01 > 0:13:04Guide price was 40 to 50,000 quid, let's take a look.
0:13:04 > 0:13:08MUSIC: "Down On The Corner" by Creedence Clearwater Revival
0:13:12 > 0:13:14This three-bed semi-detached
0:13:14 > 0:13:17not only benefits from being the corner plot
0:13:17 > 0:13:21with front, side and rear gardens, but there's also double glazing.
0:13:21 > 0:13:25Considering its guide price of 40 to 50,000,
0:13:25 > 0:13:27the signs are encouraging.
0:13:27 > 0:13:29So what have we got?
0:13:29 > 0:13:32That's a nice surprise, a really nice, big entrance hall area.
0:13:32 > 0:13:35Loads of places to hang your coats or put your bikes,
0:13:35 > 0:13:37stairs up to the bedrooms.
0:13:37 > 0:13:39Through into the lounge.
0:13:39 > 0:13:42This has been knocked through to create a really good sized space.
0:13:42 > 0:13:46You'd probably want to do something about this fireplace surround.
0:13:46 > 0:13:48Get rid of that and you can give yourself even more room
0:13:48 > 0:13:50but intrinsically, it's good.
0:13:50 > 0:13:52Look at this.
0:13:52 > 0:13:58For the Del Boys amongst you, your own bar. Fantastic.
0:13:58 > 0:14:03MUSIC: "Have A Drink On Me" by AC/DC
0:14:03 > 0:14:08OK, that might be one of the first things to go,
0:14:08 > 0:14:11and the next I'd suggest might be the kitchen
0:14:11 > 0:14:14which appears to be on its last legs.
0:14:16 > 0:14:20But in fact, so far, there's nothing that unduly worries me yet.
0:14:20 > 0:14:24Upstairs, lots of light coming into the stairwell
0:14:24 > 0:14:26from that nice big window and the landing here.
0:14:26 > 0:14:28Small bedroom on that side at the front,
0:14:28 > 0:14:31a larger double on the left-hand side at the front.
0:14:31 > 0:14:33Good news, your bathroom is upstairs
0:14:33 > 0:14:36and it's a good family size, which is great.
0:14:36 > 0:14:41Then through into the third bedroom, views out over the garden.
0:14:41 > 0:14:44Again, good size, double with some storage.
0:14:44 > 0:14:47This is a really good family house, isn't it?
0:14:50 > 0:14:53Yes, the bathroom's a tad ropey
0:14:53 > 0:14:56and the suite will need replacing but it's a great size.
0:14:56 > 0:14:59Along with those three bedrooms, the layout is simple and works well.
0:14:59 > 0:15:03This place just shouts family home at me.
0:15:06 > 0:15:09So we like the potential for the inside. What about outside?
0:15:09 > 0:15:13Thankfully, it's a similar story.
0:15:13 > 0:15:16Clearly, this little extension conservatory bit here is not ideal
0:15:16 > 0:15:19but render it, stick a new roof on and some new windows
0:15:19 > 0:15:21and you might be able to retrieve that.
0:15:21 > 0:15:23Similarly, these outbuildings, they're not the prettiest
0:15:23 > 0:15:25but they do have an outside loo.
0:15:25 > 0:15:28Again, you might want to restore that.
0:15:28 > 0:15:31The shed, definitely a coat of paint!
0:15:31 > 0:15:35The garden itself, you've got a really good sized plot.
0:15:35 > 0:15:38That's one of the benefits of being on the end here.
0:15:38 > 0:15:41Flagged at the moment, it needs a bit of work
0:15:41 > 0:15:45but in terms of potential, just a big tick.
0:15:48 > 0:15:50This really has so many plus points.
0:15:50 > 0:15:55It's a decent size but could be made bigger if desired.
0:15:55 > 0:15:58It could be a family home but also work as a rental,
0:15:58 > 0:16:00so what's not to like?
0:16:00 > 0:16:05This house benefits from this most wonderful corner plot.
0:16:05 > 0:16:08Look at the garden and this is just at the front!
0:16:08 > 0:16:11The first thing you might think is a perfect spot for a garage.
0:16:11 > 0:16:16Unfortunately, the plot is less than 12 metres away
0:16:16 > 0:16:19from a major junction, so the planners,
0:16:19 > 0:16:23if you ask them for a garage here, would say no.
0:16:23 > 0:16:27So that's definitely one box that doesn't get a tick
0:16:27 > 0:16:31but you could create some off-street parking at the front.
0:16:31 > 0:16:34Overall, this three-bed semi-detached house
0:16:34 > 0:16:38with what was a 40 to £50,000 guide price looks pretty enticing to me.
0:16:42 > 0:16:45What does the auctioneer who sold it think?
0:16:48 > 0:16:51I think it's a good, sound, well-built property.
0:16:51 > 0:16:54Probably needs decoration, new kitchen, new bathroom.
0:16:54 > 0:16:58It's a generous plot, generous sized rooms, a good family home.
0:16:58 > 0:17:02Remembering that 40 to £50,000 guide price,
0:17:02 > 0:17:06once it was renovated, what sort of resale price could this place get?
0:17:06 > 0:17:09On this existing footprint, I think you would achieve
0:17:09 > 0:17:11in the region of £80,000.
0:17:11 > 0:17:16That's not bad. What about rental values?
0:17:16 > 0:17:20If this property was renovated, it would probably achieve
0:17:20 > 0:17:25a rental income of approximately £400 per calendar month.
0:17:32 > 0:17:36Well, you know what, I reckon this is a perfect auction purchase.
0:17:36 > 0:17:41Yes, it's in need of some sorting out but nothing too major.
0:17:41 > 0:17:43What you've got here is a house in a good location
0:17:43 > 0:17:46with nice gardens and lots of accommodation
0:17:46 > 0:17:47at a really good guide price.
0:17:47 > 0:17:50Let's see who went for it when it went under the hammer.
0:17:54 > 0:17:58Moving on to lot number four, it's a three-bedroom end link property
0:17:58 > 0:18:02on the corner plot that is in need of some upgrading throughout.
0:18:02 > 0:18:0835 start? 35 we've got, back of the room. At £35,000, I'm bid.
0:18:08 > 0:18:11I'll take it in ones, nice and easy.
0:18:11 > 0:18:1536, anyone? 36 I have. Can I see 37?
0:18:15 > 0:18:19Madam, just beat you. 38 at the back, sir. 38 I've got, 39.
0:18:19 > 0:18:2339 and a half, 40. Shake of the head, 40 with you then, sir.
0:18:23 > 0:18:2840 I've got. 41 may I see, madam? 42, 43.
0:18:28 > 0:18:3544, 5, 6, 7, 8, 9.
0:18:35 > 0:18:4050, 1, 2, 3, 4, 5.
0:18:40 > 0:18:43Shake of the head at 55.
0:18:43 > 0:18:46At £54,000, you've been with me all the way.
0:18:46 > 0:18:49At £54,000, are we done? All out.
0:18:49 > 0:18:5755, thought there might have been a bit more. 56, and seven. Eight, 59.
0:18:57 > 0:19:0260. 60 I've got. One? Shake of the head at one.
0:19:02 > 0:19:04£60,000 with the gentleman stood to the rear.
0:19:04 > 0:19:08Take a half. Half I've got.
0:19:08 > 0:19:1461. Shake of the head. 60,500 then, first time.
0:19:14 > 0:19:1560,500 second time.
0:19:15 > 0:19:2160,500, selling this, here she goes. First, second, third time.
0:19:21 > 0:19:23Sold seated, well done.
0:19:28 > 0:19:34So, for £60,500, it was Cathy who bought the three-bed semi.
0:19:34 > 0:19:36She's a youth and community worker
0:19:36 > 0:19:38and she joined me back at the property
0:19:38 > 0:19:43with eldest daughter Carla to tell me why she really wanted it.
0:19:43 > 0:19:47MUSIC: "I've Been Wanting You" by Vagabond
0:19:50 > 0:19:53- Cathy, Carla, lovely to meet you both.- Lovely to meet you too.
0:19:53 > 0:19:57Congratulations. Tell me why you wanted to buy the house.
0:19:57 > 0:19:59Wanted to buy the house for Carla
0:19:59 > 0:20:02because she's in a two-bedroom house now.
0:20:02 > 0:20:05She's got a little boy, she's having a little girl
0:20:05 > 0:20:08and just thought it'd be nice to give her a family home.
0:20:08 > 0:20:12- Wow, so when's the baby due? - Six weeks.- Fantastic.
0:20:12 > 0:20:15So, is it all a scramble to get it all sorted out by then?
0:20:15 > 0:20:17No, I think it's going to take a bit longer
0:20:17 > 0:20:20because we're off on holiday on Friday for a couple of weeks
0:20:20 > 0:20:22so it's going to be delayed a little bit.
0:20:22 > 0:20:25Right, but the idea is it's somewhere for you to live?
0:20:25 > 0:20:30- So what you think about that?- Yeah, I'm dead excited, dead nervous.
0:20:30 > 0:20:32Can't wait to get stuck into it.
0:20:32 > 0:20:36- So how was the auction? - Terrifying.- Why?
0:20:36 > 0:20:38We got into trouble, didn't we?
0:20:38 > 0:20:41- First of all, I spent more than I should have.- Tell me.
0:20:41 > 0:20:43I was given a budget of 50,000.
0:20:43 > 0:20:4450? And you spent?
0:20:44 > 0:20:4860,500, because we desperately wanted it.
0:20:48 > 0:20:50I still thought it was a bargain.
0:20:55 > 0:20:59Let's hope it is a bargain because it's been bought as an investment
0:20:59 > 0:21:02as well as a new home for Carla,
0:21:02 > 0:21:05her partner Jay, son Jamil and the new baby.
0:21:05 > 0:21:09Carla will pay rent though and some of the refurbishment costs too,
0:21:09 > 0:21:10but when it comes to the hard graft,
0:21:10 > 0:21:15dad Peter who's in the building trade with his own roofing business
0:21:15 > 0:21:17will definitely be roped in.
0:21:17 > 0:21:20- Tell me what you're going to do to it.- We are going
0:21:20 > 0:21:22to replace the bathroom, replace the kitchen,
0:21:22 > 0:21:24strip all the walls back.
0:21:24 > 0:21:28Have it all plastered, new skirting boards, new door casings,
0:21:28 > 0:21:32then sort the garden out as well.
0:21:32 > 0:21:35So what about the cocktail bar?
0:21:35 > 0:21:37Well, my partner actually wanted to keep it!
0:21:37 > 0:21:42- I don't think it's our cup of tea. - It's going to be gone.
0:21:42 > 0:21:46What about this extension at the back because it's obviously a bit unsightly.
0:21:46 > 0:21:49I think we're going to keep it, aren't we?
0:21:49 > 0:21:53- My dad's going to put a new roof on it.- Needs rendered and stuff.
0:21:53 > 0:21:55Looks like it's got a bit of damp in it.
0:21:55 > 0:21:57So what kind of budget is there for that?
0:21:57 > 0:22:01We're looking, I think, between five and 10,000.
0:22:01 > 0:22:06Depends how much Carla decides to spend.
0:22:06 > 0:22:08So what could blow the budget?
0:22:08 > 0:22:13I don't think my dad knows but I've been thinking new patio doors
0:22:13 > 0:22:15and things like that.
0:22:15 > 0:22:17Just nice bits. Bits that look good.
0:22:17 > 0:22:20Let's hope that's not just wishful thinking on Carla's part
0:22:20 > 0:22:23because it's going to be quite a challenge to carry out
0:22:23 > 0:22:28all the hoped-for plans on a budget of just five to 10,000.
0:22:28 > 0:22:30So who's going to be doing the work?
0:22:30 > 0:22:32My brother-in-law will be tiling,
0:22:32 > 0:22:35he'll be doing the kitchen and the bathroom.
0:22:35 > 0:22:38Got a lot of family help, haven't we?
0:22:38 > 0:22:41Mostly her dad, he'll be coming in and banging about.
0:22:41 > 0:22:46He'll be looking at the roof. He's a roofer, so mostly him and his crew.
0:22:46 > 0:22:49OK, so you two are going on holiday
0:22:49 > 0:22:52and leaving him at home to get on with the work.
0:22:52 > 0:22:54- Is he happy with that?- Yeah, he is.
0:22:54 > 0:22:58- Sounds like it's a great family purchase.- It is, it's an investment.
0:22:58 > 0:23:00We look forward to seeing how you get on.
0:23:00 > 0:23:02Good luck. Hope the birth and everything goes well.
0:23:02 > 0:23:04- Thank you very much. - Have a nice holiday.
0:23:04 > 0:23:09- We will see you in a few months' time.- All right then, thank you.
0:23:10 > 0:23:13Well, Carla's got herself a great property here
0:23:13 > 0:23:17for her expanding family and her and her mum are off on holiday
0:23:17 > 0:23:19leaving dad to sort it out. Fantastic.
0:23:19 > 0:23:22How will he and the rest of the family get on with the renovation,
0:23:22 > 0:23:25you can find out later in the show.
0:23:25 > 0:23:28We might even get to see the baby.
0:23:28 > 0:23:30Coming up - in Tunbridge Wells, Kent,
0:23:30 > 0:23:34there's a property that looks small from the outside
0:23:34 > 0:23:38but strangely enough, when you walk in, it's massive!
0:23:38 > 0:23:43Back in Workington, we check on progress at Carla's new family home.
0:23:44 > 0:23:49It's gone a bit slow, hasn't it? It could have been quicker.
0:23:49 > 0:23:51But first, we return to Warrington
0:23:51 > 0:23:55to find out how Mark is getting on with his new venture.
0:23:55 > 0:23:57I have loved every single second of it. I would do it again.
0:24:03 > 0:24:07Back in the Cheshire town of Warrington, we came across
0:24:07 > 0:24:11a three-bed terraced property which was just starting to show its age.
0:24:11 > 0:24:15It needed a thorough update and refurbishment, but seemed fundamentally sound.
0:24:15 > 0:24:19So, for first-time developer and local man Mark,
0:24:19 > 0:24:21it appeared an excellent place
0:24:21 > 0:24:25to get his fledgling property career off the ground.
0:24:25 > 0:24:28Have you ever done anything like this before?
0:24:28 > 0:24:32It's not anything that I've done before on this type of level, really.
0:24:32 > 0:24:35I used to work for an airline. I was a cabin crew manager for an airline.
0:24:35 > 0:24:37- Really, how many years? - I did that for 12 years in total.
0:24:37 > 0:24:41It felt time for me to do something different really, to be honest.
0:24:41 > 0:24:44This change of direction didn't come cheap
0:24:44 > 0:24:46as Mark paid 57,000 for the house.
0:24:46 > 0:24:49He was hoping to find a new career path
0:24:49 > 0:24:51but also had a family to support meanwhile
0:24:51 > 0:24:54so couldn't afford for this to go wrong.
0:24:54 > 0:24:58His property came with some potential pitfalls.
0:24:58 > 0:25:00A train line at the end of the garden
0:25:00 > 0:25:02and an area of flying freehold,
0:25:02 > 0:25:06all of which could potentially affect the end value.
0:25:06 > 0:25:09With a budget of £6,000 set aside,
0:25:09 > 0:25:12he hoped to turn it around as soon as possible.
0:25:12 > 0:25:16Just seven weeks have flown by and we're back with Mark
0:25:16 > 0:25:20and his six year-old daughter Ellie to catch up on progress.
0:25:21 > 0:25:25The outside - it's been given a lick of paint
0:25:25 > 0:25:27and the door has gone from white to black.
0:25:30 > 0:25:34But it's inside where the refurbishment has really taken off.
0:25:34 > 0:25:37In the front reception room, there's now laminate flooring,
0:25:37 > 0:25:40those polystyrene tiles have now gone
0:25:40 > 0:25:43and the ceiling's been replastered.
0:25:43 > 0:25:46There's a modern gas fireplace and that old kitchen,
0:25:46 > 0:25:49that's now a thing of the past.
0:25:49 > 0:25:51In this particular room,
0:25:51 > 0:25:54I think it's changed an absolutely massive amount.
0:25:54 > 0:25:56The kitchen units have all been replaced,
0:25:56 > 0:25:59we've put new flooring down, all of the walls have been painted.
0:25:59 > 0:26:02The ceiling's been skinned and repainted as well.
0:26:02 > 0:26:06The kitchen I bought off an internet auction site so it came second hand
0:26:06 > 0:26:09and it came with all the units and the hob and everything else.
0:26:09 > 0:26:12It's got a built-in dishwasher. I think it's come out really well.
0:26:12 > 0:26:16Not only has Mark improved the kitchen but he did it
0:26:16 > 0:26:21with his property developer's hat on and kept the costs down.
0:26:26 > 0:26:29Upstairs, the three bedrooms are also finished
0:26:29 > 0:26:33and ready for a tenant who's moving in in just a couple of days' time.
0:26:39 > 0:26:42However, work on the main bedroom wasn't trouble-free.
0:26:42 > 0:26:46This room and the upstairs probably caused me the most problems of all,
0:26:46 > 0:26:47to be perfectly honest.
0:26:47 > 0:26:50We started knocking out for the electrical socket boxes
0:26:50 > 0:26:53and the entire wall fell down.
0:26:53 > 0:26:56We ended up replacing and rebuilding the entire wall.
0:26:56 > 0:26:59Things got rather messier than he'd hoped
0:26:59 > 0:27:04but with a full refurbishment of the bathroom, apart from some small snagging jobs,
0:27:04 > 0:27:06the house is just about ready to go.
0:27:06 > 0:27:10Mark did use professional tradesmen where required, but even so,
0:27:10 > 0:27:15to get to this stage in just six weeks is some going.
0:27:15 > 0:27:17I've done virtually all of the work myself
0:27:17 > 0:27:20with help from friends and family really, to be honest.
0:27:20 > 0:27:23My dad has come up from South Wales, he's helped me a few times.
0:27:23 > 0:27:26My wife has painted virtually of upstairs.
0:27:26 > 0:27:28Even my young daughter Ellie,
0:27:28 > 0:27:30she's been stripping wallpaper off and painting walls.
0:27:33 > 0:27:35Ah, yes. Six-year-old Ellie.
0:27:35 > 0:27:38How did she find the refurbishment work?
0:27:38 > 0:27:45- Any top tips?- I've been stripping wallpaper by getting this tool.
0:27:45 > 0:27:50It's sharp and put it where I could
0:27:50 > 0:27:52as I lifted it up like that
0:27:52 > 0:27:55and then quite a lot comes off and then peel it.
0:27:55 > 0:27:59That definitely sounds like a top tip to me
0:27:59 > 0:28:02but what's been the bestest bit?
0:28:02 > 0:28:07The best thing is how good it's turned out to look now.
0:28:07 > 0:28:13Does that mean she's keen to follow dad along his new career path?
0:28:13 > 0:28:17I'd like to have quite a quiet job like an author.
0:28:17 > 0:28:19That's what I want to be.
0:28:19 > 0:28:22Hmm. In this house, things could get a bit noisy
0:28:22 > 0:28:25with those trains running past.
0:28:25 > 0:28:29Perhaps it's not quite the right career for her at present,
0:28:29 > 0:28:34but for dad Mark, to become a big noise in the property world,
0:28:34 > 0:28:38it's vital to keep expenditure under control.
0:28:38 > 0:28:41Was initially £6,000. I've gone a little bit over that
0:28:41 > 0:28:44and I think that was mainly due to the extra plastering
0:28:44 > 0:28:46and the full electrical rewire, so in total,
0:28:46 > 0:28:48it's been about £6,500 now.
0:28:50 > 0:28:54That pretty impressive 6,500 spend
0:28:54 > 0:28:57on top of Mark's £57,000 purchase price for the house
0:28:57 > 0:29:02will take his total outlay to around £63,500.
0:29:02 > 0:29:06So, has his first property development got off to a flying start?
0:29:06 > 0:29:10What do two local estate agents think?
0:29:10 > 0:29:13First impressions are that it's got three good-sized bedrooms.
0:29:13 > 0:29:16Downstairs combination is particularly light.
0:29:16 > 0:29:20Finished to a good standard throughout and will be of interest to a lot of people.
0:29:20 > 0:29:22Property is in good condition.
0:29:22 > 0:29:24There's still some finishing off work to complete
0:29:24 > 0:29:27but overall, there's a new floor and coverings, all the walls are smooth.
0:29:27 > 0:29:29The kitchen's had some improvements as well
0:29:29 > 0:29:31so generally a result.
0:29:31 > 0:29:34This property was always meant for the rental market
0:29:34 > 0:29:38and Mark's already got a tenant confirmed,
0:29:38 > 0:29:40but what sort of rental income should he get?
0:29:40 > 0:29:43Sensible rental value for a property of this style would be somewhere
0:29:43 > 0:29:47between £525 per calendar month and £575 per calendar month.
0:29:47 > 0:29:52This property would bring around 500 to £525 per calendar month.
0:29:52 > 0:29:56I've already got a tenant lined up and the tenant moves in in two days.
0:29:56 > 0:29:59I've rented it for £500 a month so I'm delighted by that.
0:29:59 > 0:30:00Absolutely delighted.
0:30:00 > 0:30:02That's fantastic.
0:30:02 > 0:30:07A six week turnaround and he's already let it for £500 a month,
0:30:07 > 0:30:09representing a yield of around 9.5%,
0:30:09 > 0:30:16but has he also added value to his £63,500 investment?
0:30:16 > 0:30:19I would suggest a sale price of between £80-85,000.
0:30:19 > 0:30:23We would expect it to be worth in the region of £80-85,000.
0:30:23 > 0:30:27That is fantastic. That is really amazing.
0:30:29 > 0:30:32It's been a big gamble
0:30:32 > 0:30:37and that's a potential £21,000.
0:30:37 > 0:30:39Ka-ching! Fantastic.
0:30:41 > 0:30:42Even after tax and fees,
0:30:42 > 0:30:45there's still potentially a decent profit here
0:30:45 > 0:30:49but most importantly for Mark, it shows him he's on the right track
0:30:49 > 0:30:54in could have a future as a property developer.
0:30:54 > 0:30:57I have loved every single second of it.
0:30:57 > 0:30:59I would do it again so if at all possible,
0:30:59 > 0:31:00if I can find the finance,
0:31:00 > 0:31:03I'm going back to the auction hopefully next week
0:31:03 > 0:31:05and see if I can pick up anything else.
0:31:05 > 0:31:07That might mean daughter Ellie
0:31:07 > 0:31:10will have to put that writing career on hold a little longer
0:31:10 > 0:31:12and pick up that wallpaper stripper instead
0:31:12 > 0:31:16so the family can continue working together.
0:31:16 > 0:31:19Music: "You And Me Song" by The Wannadies
0:31:31 > 0:31:33Tunbridge Wells deserves its royal moniker.
0:31:33 > 0:31:36It's extremely charming and really rather posh.
0:31:36 > 0:31:38The former spa town is attractive, affluent
0:31:38 > 0:31:42and with a much lower crime rate than the national average
0:31:42 > 0:31:44so it's no wonder that property around here
0:31:44 > 0:31:47costs rather more than your average detached home.
0:31:47 > 0:31:51In fact, they go for over half a million quid!
0:31:54 > 0:31:57A short stroll around the centre and you can see
0:31:57 > 0:31:59why Tunbridge Wells is so desirable,
0:31:59 > 0:32:03but that is a rather large wodge of cash for a family house
0:32:03 > 0:32:05and well out of many people's reach.
0:32:05 > 0:32:09But I have something up my sleeve that may be rather more affordable.
0:32:11 > 0:32:14Typically, the property I'm here to see has dragged me
0:32:14 > 0:32:16to the slightly less posh part of the high street
0:32:16 > 0:32:19but I really can't complain. It's not exactly far
0:32:19 > 0:32:23to drag all those lovely boutique shopping bags now, is it?
0:32:23 > 0:32:26You might be expecting me to pitch up at a commercial premises
0:32:26 > 0:32:29but you would be wrong. In fact, the lot I'm here to see,
0:32:29 > 0:32:32it's a three-bedroom maisonette above this shop.
0:32:32 > 0:32:37It had a guide price of 120-125,000.
0:32:37 > 0:32:40All I have to do is try and find a way in.
0:32:41 > 0:32:45At that guide price, it's certainly worth the slight difficulty
0:32:45 > 0:32:50of finding the access which is round the side of the property.
0:32:50 > 0:32:53Well, hurrah! I have found it!
0:32:53 > 0:32:57This is what you call a roof terrace. Wow!
0:32:57 > 0:33:01Not exactly private, and the property I'm here to see
0:33:01 > 0:33:05is that little maisonette squashed over in the corner.
0:33:05 > 0:33:08I'm going to have a look around.
0:33:08 > 0:33:12So, sitting on top and around the back of a commercial premises
0:33:12 > 0:33:14is the three-bed Victorian maisonette
0:33:14 > 0:33:16with a large flat roof in front.
0:33:16 > 0:33:19It's worth remembering that being above a commercial unit
0:33:19 > 0:33:21can make it difficult to get a mortgage
0:33:21 > 0:33:25but the terrace is well tucked away from the traffic here.
0:33:25 > 0:33:29Gosh, you feel so squashed in the corner here,
0:33:29 > 0:33:34but strangely enough, when you walk in, it's massive!
0:33:34 > 0:33:39This is a really fantastic welcoming hallway with beautiful...
0:33:39 > 0:33:40Look at these floors!
0:33:40 > 0:33:44They may look hideous at the moment, they're absolutely trashed,
0:33:44 > 0:33:48but I know for a fact that once these have been sanded and treated,
0:33:48 > 0:33:52they will look fabulous. Herringbone hardwood floors.
0:33:52 > 0:33:54They are going to come up a treat.
0:33:54 > 0:33:56Gosh, you can see that there's so much work to do.
0:33:56 > 0:33:59We'll come back to that ceiling a little bit later on
0:33:59 > 0:34:01but there's just loads of character in here.
0:34:01 > 0:34:05Beautiful old little '20s tiles in the kitchen. That's really spacious.
0:34:05 > 0:34:08Through into the lounge. Wow!
0:34:08 > 0:34:11Now it is an odd shape but I like to think it's quirky.
0:34:11 > 0:34:15It's definitely the sort of place I think I'd like to live.
0:34:15 > 0:34:18I'm now thinking, what about taking this wall out
0:34:18 > 0:34:20and really opening the hallway and this room up,
0:34:20 > 0:34:23because you'd get that instant wow factor.
0:34:23 > 0:34:25You'd be able to see both windows in here.
0:34:25 > 0:34:27You've got this little fireplace.
0:34:27 > 0:34:30I'm not sure that this really goes with the character of the property
0:34:30 > 0:34:33but you could definitely do something with this
0:34:33 > 0:34:35to give it a bit of oomph.
0:34:35 > 0:34:39I really, really like it. In fact, I can't wait to see what's upstairs.
0:34:43 > 0:34:47Upstairs are the bedrooms, a rather elongated single
0:34:47 > 0:34:49and two good-sized doubles.
0:34:49 > 0:34:53The larger double has oddly angled walls which could be seen as quirky
0:34:53 > 0:34:58or irritating, depending on whether you're fitting wardrobes, I guess!
0:34:58 > 0:35:02The bathroom is a fair size but needs some attention.
0:35:02 > 0:35:06The landing really adds to the feeling of open space.
0:35:06 > 0:35:10Talking of big open spaces, let's return to that ceiling.
0:35:16 > 0:35:19Now, you know I said I would get back to you about the ceiling, well,
0:35:19 > 0:35:24having a good old look at this, my guess is dry rot.
0:35:24 > 0:35:28You can really tell by that feathery pattern that's left on the ceiling.
0:35:28 > 0:35:33I'm just hoping that the dry rot has now gone, it's been removed.
0:35:33 > 0:35:37It looks as though it has but whoever takes this on,
0:35:37 > 0:35:40I would get somebody round ASAP to have a look
0:35:40 > 0:35:44and to check that it has been treated because if it hasn't been,
0:35:44 > 0:35:46oh, boy, that can be a nightmare.
0:35:51 > 0:35:54So, who is this pad going to suit?
0:35:54 > 0:35:59Roof terrace, centre of town, steps from bars and restaurants,
0:35:59 > 0:36:01you guessed it! It's young professionals.
0:36:01 > 0:36:04You can forget families, this place is crying out
0:36:04 > 0:36:06for a young people or some sharers
0:36:06 > 0:36:08who want to walk to work or the train station
0:36:08 > 0:36:12and not worry about a garden or a car, which is just as well
0:36:12 > 0:36:15because there's no parking space with this property.
0:36:15 > 0:36:18Your market may not be a wide one but there are plenty of people
0:36:18 > 0:36:22who do fit the bill and would rent this place in a flash.
0:36:22 > 0:36:25Music: "Flash's Theme" by Queen
0:36:25 > 0:36:28With three good-sized bedrooms, a well-proportioned lounge
0:36:28 > 0:36:30and a very central location,
0:36:30 > 0:36:34I don't think you'd have any trouble finding tenants for this property.
0:36:34 > 0:36:37Does a local estate agent agree?
0:36:37 > 0:36:40We invited one along to get all the gen on this maisonette
0:36:40 > 0:36:44guided at 120-125,000.
0:36:44 > 0:36:46First impressions of the flat, fantastic.
0:36:46 > 0:36:49Loads of potential, lots you could do
0:36:49 > 0:36:53either as a three bedroom or as splitting it into two flats.
0:36:53 > 0:36:55Interesting.
0:36:55 > 0:36:58Let's compare what the resale value difference would be
0:36:58 > 0:37:03between renovating as a three-bed or converting into two one-bed flats.
0:37:03 > 0:37:09I put a value of around about £135-140,000.
0:37:09 > 0:37:14If I had it fully renovated already as a three-bedroom maisonette,
0:37:14 > 0:37:19we'd be looking at towards £190-195,000.
0:37:19 > 0:37:23Splitting it into two separate one-bedroom flats,
0:37:23 > 0:37:27I think you'd get around about £115,000 each.
0:37:27 > 0:37:30Could be more money in a conversion then.
0:37:30 > 0:37:33Let's test the waters as a buy to let.
0:37:33 > 0:37:36If you're renting as a three-bedroom maisonette,
0:37:36 > 0:37:40you're looking at around about £850 per calendar month.
0:37:40 > 0:37:42If you split it into two one-bedroom flats,
0:37:42 > 0:37:47interestingly, you're getting around about 550 per calendar month, each.
0:37:47 > 0:37:49This flat is not exactly pretty
0:37:49 > 0:37:52but it's perfect for a landlord's portfolio.
0:37:52 > 0:37:56It needs dolling up, but once you've done that, I think it's destined
0:37:56 > 0:38:00for young renters who aren't interested in suburban living and front lawns.
0:38:00 > 0:38:05Right now, they want bars and boutiques and busy town life.
0:38:05 > 0:38:07Let's see who thought it was worth a go at the auction.
0:38:07 > 0:38:10Three-bedroom maisonette for improvement.
0:38:10 > 0:38:13It's at the centre of Royal Tunbridge Wells, no less.
0:38:13 > 0:38:16Give me 95 because I'm not going below 95.
0:38:16 > 0:38:1995, I'm obliged. In Tunbridge Wells, I would think so too.
0:38:19 > 0:38:2395,000 I have, 100,000 I'm looking for.
0:38:23 > 0:38:25Are we all done at £95,000?
0:38:25 > 0:38:28100 I've got, 105, 110, thank you.
0:38:28 > 0:38:34115, 115, do I see? 115, and 20.
0:38:34 > 0:38:38120 and 5, 122.
0:38:38 > 0:38:41124, and 6, 126.
0:38:41 > 0:38:45And 8, 128 can I say? 128 in a fresh place.
0:38:45 > 0:38:48130, 130 and 2.
0:38:48 > 0:38:53132, may I say? If not, at £130,000 on my right for the first time.
0:38:53 > 0:38:57£130,000 for the second time,
0:38:57 > 0:38:58third and final time,
0:38:58 > 0:39:03at £130,000, all of you are out of it and we're all done.
0:39:03 > 0:39:04Yours at 130, sir.
0:39:04 > 0:39:09That successful bid of 130,000 came from David.
0:39:09 > 0:39:12He lives 15 miles away in the village of Osham
0:39:12 > 0:39:15and ran his own computer company for 20 years.
0:39:15 > 0:39:18Since retiring a year ago, he's dipped his toe into developing
0:39:18 > 0:39:22and has bought this one as a joint investment with a friend.
0:39:22 > 0:39:25I met him back at the property to find out more.
0:39:25 > 0:39:28- David, it's really nice to meet you. - Hi, there.
0:39:28 > 0:39:30Tell me about this flat, why did you want to buy this?
0:39:30 > 0:39:36Well, a friend of mine from our village, we're both retired
0:39:36 > 0:39:40and we're playing golf a lot but we thought we'd have another interest.
0:39:40 > 0:39:42We're starting with this one.
0:39:42 > 0:39:45What was it about this flat you liked enough to want to bid for it?
0:39:45 > 0:39:50Location clearly is a part of it. Tunbridge Wells is a good area.
0:39:50 > 0:39:55It's not completely recession-proof but it's not bad. It rents very well.
0:39:55 > 0:39:56David's right.
0:39:56 > 0:40:00At the moment, rental does look like the key to unlocking the best value
0:40:00 > 0:40:03in this property and, of course, there is even more potential here.
0:40:03 > 0:40:06So what are his plans?
0:40:06 > 0:40:08Plan A and plan B.
0:40:08 > 0:40:13- Plan A is to convert it into two one-bedroom flats.- Wow.
0:40:13 > 0:40:18Out in the hallway, it's quite easy to have a communal area
0:40:18 > 0:40:21and have two doors and two one-bedroom flats.
0:40:21 > 0:40:25Upstairs is already laid out for that, then down here,
0:40:25 > 0:40:28we'll just move one of the doorways and put a wall in here
0:40:28 > 0:40:31so this will be a living room then a bedroom.
0:40:31 > 0:40:35That's plan A and plan B is just we do a straightforward renovation
0:40:35 > 0:40:38and leave it as a nice three-bedroom flat.
0:40:38 > 0:40:42Put another bathroom in so one of the bedrooms will have an en-suite
0:40:42 > 0:40:44and a family bathroom and two other rooms.
0:40:44 > 0:40:47How much budget are you going to have if it's a three-bedder?
0:40:47 > 0:40:49We've got a maximum budget of 20.
0:40:49 > 0:40:52Have you still got 20 grand if you convert it?
0:40:52 > 0:40:56- No, we'd then probably look at 35-40. - OK, so you could up your budget.
0:40:56 > 0:40:57Oh, quite considerably.
0:40:57 > 0:41:01With a flexible budget and a time scale of three to six months,
0:41:01 > 0:41:04depending on whether he converts or not,
0:41:04 > 0:41:09it all seems well worked out but what's the long-term intention here?
0:41:09 > 0:41:11We'll probably rent to start with
0:41:11 > 0:41:14and then sit on it for a couple of years and see what happens.
0:41:14 > 0:41:16David, it's been lovely to meet you.
0:41:16 > 0:41:20I can't wait to find out what the option is, A or B? Good luck.
0:41:20 > 0:41:23We'll soon see, won't we?
0:41:23 > 0:41:27David's plan A isn't a lavish restoration
0:41:27 > 0:41:31but two flats could be a great way to make money.
0:41:31 > 0:41:35I have to admit, my heart is with plan B but my developer's head
0:41:35 > 0:41:37so hopes he gets the result he wants.
0:41:37 > 0:41:40Find out how it all goes later in the programme.
0:41:43 > 0:41:46Many months have gone by since we last saw those properties.
0:41:46 > 0:41:50Will we recognise them? Will it have been time and money well spent?
0:41:50 > 0:41:52Let's find out.
0:41:53 > 0:41:56In the Cumbrian town of Workington,
0:41:56 > 0:41:59this three-bed semi-detached house was sold at auction.
0:41:59 > 0:42:05- Local lady Cathy bought it for 60,500.- Sold seated, well done.
0:42:05 > 0:42:09Cathy was so determined to get it that she paid £10,500
0:42:09 > 0:42:12over the agreed bidding limit set by her partner
0:42:12 > 0:42:17but then this wasn't bought as an out-and-out property development
0:42:17 > 0:42:20but as a family home for her daughter, Carla.
0:42:20 > 0:42:24MUSIC: "Venus" by Bananarama
0:42:24 > 0:42:27Wanted to buy the house for Carla
0:42:27 > 0:42:29because she's in a two-bedroom house just now.
0:42:29 > 0:42:32She's got a little boy, she's having a little girl
0:42:32 > 0:42:35and just thought it'd be nice to give her a family home.
0:42:35 > 0:42:39- What do you think about that?- Yeah, I'm dead excited, dead nervous.
0:42:39 > 0:42:41Can't wait to get stuck into it.
0:42:41 > 0:42:44- Wow, so when's the baby due? - Six weeks.- Fantastic!
0:42:44 > 0:42:46And though Carla didn't need to move
0:42:46 > 0:42:49from her current rental accommodation immediately,
0:42:49 > 0:42:53the sooner the house could be finished, the better.
0:42:53 > 0:42:56Having given her roofer dad Peter a long list of tasks,
0:42:56 > 0:42:59she jetted off with mum Cathy on holiday
0:42:59 > 0:43:03leaving him with the proposed £5-10,000 budget to do the work.
0:43:03 > 0:43:06With a new kitchen and bathroom plus a complete overhaul
0:43:06 > 0:43:08both inside and out on the to-do list,
0:43:08 > 0:43:11Carla's dad was going to be a busy man.
0:43:13 > 0:43:16Well, just over nine months later,
0:43:16 > 0:43:19we're back and the first bit of good news is the safe arrival
0:43:19 > 0:43:21of Carla's baby daughter, Cassie,
0:43:21 > 0:43:24a little sister for Jamil and now eight months old.
0:43:24 > 0:43:28But is their new home ready for them?
0:43:28 > 0:43:30Well, not quite.
0:43:30 > 0:43:34The outside is still looking a little spartan and bare
0:43:34 > 0:43:36and inside...
0:43:39 > 0:43:41Well, they are getting there
0:43:41 > 0:43:44but it's just reached the first fix stage
0:43:44 > 0:43:48so it looks like Carla and her family may have to wait
0:43:48 > 0:43:51a little bit longer before they can move into their new home.
0:43:51 > 0:43:54It's gone a bit slow, hasn't it? It could have been quicker
0:43:54 > 0:43:56but we're pleased with the result we've got so far.
0:43:58 > 0:44:02Carla's dad was hoping to do this in between jobs, but recently,
0:44:02 > 0:44:06he's been really busy and wasn't able to spend as much time here
0:44:06 > 0:44:08as he would have liked.
0:44:08 > 0:44:12MUSIC: "Give Me Just A Little More Time" by Kylie Minogue
0:44:19 > 0:44:23So, baby Cassie we'll have to hold out a little longer
0:44:23 > 0:44:26to move into her nursery.
0:44:26 > 0:44:30It will also be some time before her mum, dad and big brother
0:44:30 > 0:44:34have their own finished rooms.
0:44:34 > 0:44:37But it is all taking shape and it certainly looks as though
0:44:37 > 0:44:41Carla's definitely going to get the new bathroom and kitchen she was hoping for.
0:44:45 > 0:44:48We've knocked this wall down, made it all open-plan
0:44:48 > 0:44:51so we can fit a nice open-plan kitchen.
0:44:51 > 0:44:54There was a great big boiler over there that wasn't in use
0:44:54 > 0:44:56and pipes all on show.
0:44:56 > 0:44:59We've integrated all the pipes, put in new central heating
0:44:59 > 0:45:01and just made it all nice and flush
0:45:01 > 0:45:04so we can have the nice kitchen fitted.
0:45:04 > 0:45:08This looks like it's going to be a great family kitchen.
0:45:08 > 0:45:12They really seem to be making the most of the space they have here.
0:45:12 > 0:45:15This extension, it was a bit of a lean-to in the beginning.
0:45:15 > 0:45:19We were going to knock it down but then Carla decided that she needed
0:45:19 > 0:45:23more space for the children to play so we put a roof on,
0:45:23 > 0:45:25took the windows out and put patio doors in
0:45:25 > 0:45:28so it'd be easy to come out and the kids can play in the garden.
0:45:28 > 0:45:34Those patio doors provide access to what will be a large family garden
0:45:34 > 0:45:38but there are certainly still a few more jobs to do.
0:45:46 > 0:45:48The patio doors still need fixed and then obviously,
0:45:48 > 0:45:51the roof finished off and then in there can be finished.
0:45:51 > 0:45:56I'm waiting for the new fire to be fitted and that can be finished.
0:45:56 > 0:46:00- The kitchen's coming tomorrow. - Then really it can be painted.
0:46:00 > 0:46:04The bathroom finished, front door on and then that can be finished,
0:46:04 > 0:46:07plastered and then flooring throughout.
0:46:07 > 0:46:11- Hopefully then it will be finished, won't it?- Not too much then!
0:46:11 > 0:46:15That's just the inside, what about the outside?
0:46:15 > 0:46:18We are going to have set bricks on as a drive,
0:46:18 > 0:46:21a nice big drive on the front and up the side.
0:46:21 > 0:46:24Carry them round to make a nice patio area.
0:46:24 > 0:46:25A nice bit of grass for the kids
0:46:25 > 0:46:28and maybe a nice bit of decking at the back if I'm allowed.
0:46:31 > 0:46:35I'll probably pay for that myself.
0:46:36 > 0:46:39I think you might have to pay for that, Carla.
0:46:39 > 0:46:43Let's hope the budget isn't rather more than they'd hoped for.
0:46:43 > 0:46:46The budget was originally 10,000 but we have gone over that.
0:46:46 > 0:46:50We've gone up to 15,000 and I think it will cost about another 5,000
0:46:50 > 0:46:54by the time the flooring's down and for the outside as well.
0:46:54 > 0:46:58So, if their budget does reach 20,000,
0:46:58 > 0:47:02that would bring their total outlay including the purchase price
0:47:02 > 0:47:06to £80,500 plus all their costs and fees.
0:47:06 > 0:47:10It's been bought as a home for Carla but it's still an investment
0:47:10 > 0:47:13so let's hope they haven't smashed through
0:47:13 > 0:47:15the ceiling price for the area.
0:47:15 > 0:47:17What do two local property experts reckon?
0:47:20 > 0:47:24First impressions, yes, there's ongoing work on this property.
0:47:24 > 0:47:30Looking inside, most of it has been finished to a very high standard.
0:47:30 > 0:47:32What has surprised me the most is the garden.
0:47:32 > 0:47:36Those outbuildings, obviously they've taken them all down
0:47:36 > 0:47:38and there's still work to continue
0:47:38 > 0:47:41but it's really a good size family garden.
0:47:41 > 0:47:43My first impression of the property
0:47:43 > 0:47:45is it provides good sized family accommodation
0:47:45 > 0:47:47although it is work in progress at the moment,
0:47:47 > 0:47:52but it does offer potential for extension of either
0:47:52 > 0:47:55extra accommodation or a garage on the side of the property.
0:47:55 > 0:47:58Obviously, this house has some way to go before completion
0:47:58 > 0:48:03but they hope to have it all done and dusted for a total expenditure
0:48:03 > 0:48:06of 80,500. Will that be money well spent?
0:48:06 > 0:48:11My selling figure for this on the open-market would be 75,000.
0:48:11 > 0:48:13Once the property has been completed,
0:48:13 > 0:48:16I would value this property at £70,000.
0:48:16 > 0:48:17That sounds about right to me.
0:48:17 > 0:48:20- It's more of an investment, isn't it?- It is, yeah.
0:48:20 > 0:48:23We're not wanting to sell, it's a place for Carla to live
0:48:23 > 0:48:25so, future home.
0:48:25 > 0:48:30So if sold on, they could be looking at a loss of around £5-10,000,
0:48:30 > 0:48:34but as they say, Cathy bought this Carla's family home
0:48:34 > 0:48:38and a long-term investment.
0:48:38 > 0:48:41Carla will be paying rent so what might she expect to pay?
0:48:41 > 0:48:44The rental on this property when it's finished
0:48:44 > 0:48:46would be £375 per calendar month.
0:48:46 > 0:48:50Once the works have been completed, I would advertise this property
0:48:50 > 0:48:53on the rental market at £400 per calendar month.
0:48:53 > 0:48:57Yeah, that sounds good. It sounds fair to me.
0:48:57 > 0:48:58On the open market,
0:48:58 > 0:49:03the house could then achieve an annual yield of between 5 and 6%,
0:49:03 > 0:49:07so as a rental investment, they haven't done too badly.
0:49:07 > 0:49:10But what are they looking forward to most of all?
0:49:10 > 0:49:14Most looking forward to getting some time back, for Carla to be settled
0:49:14 > 0:49:18in a nice three-bedroom house where I know she's going to be happy.
0:49:18 > 0:49:21Well, they may still have a little way to go
0:49:21 > 0:49:24but they're certainly transforming this house for the better.
0:49:24 > 0:49:28We wish Carla and family all the best in their lovely new home
0:49:28 > 0:49:31when it's finally finished.
0:49:34 > 0:49:39MUSIC: "Sultans of Swing" by Dire Straits
0:49:39 > 0:49:42It was in Royal Tunbridge Wells in Kent set among the rooftops
0:49:42 > 0:49:46that we came across a rather quirky three-bed maisonette.
0:49:46 > 0:49:47Although dated and tired,
0:49:47 > 0:49:50it had bags of charm along with a town centre location.
0:49:50 > 0:49:53It certainly wasn't short of potential
0:49:53 > 0:49:58and retired computer company owner David bought it for 130,000
0:49:58 > 0:50:02in partnership with another retired friend, Paul.
0:50:02 > 0:50:04After chatting on a golf course,
0:50:04 > 0:50:07they thought it might be fun to have a go at property developing.
0:50:07 > 0:50:10They thought this would be the ideal property
0:50:10 > 0:50:12to get into the swing of things.
0:50:12 > 0:50:15The only question was, what to do with it?
0:50:15 > 0:50:17There's plan A and Plan B.
0:50:17 > 0:50:20Plan A is to convert it to two one-bedroom flats.
0:50:20 > 0:50:25Plan B is we do a straightforward renovation
0:50:25 > 0:50:27and leave it as a nice three-bedroom flat.
0:50:27 > 0:50:30So David and business partner Paul had a tricky decision to make.
0:50:30 > 0:50:35The two flat option needed planning permission and a proposed budget
0:50:35 > 0:50:36of 35 to 40,000,
0:50:36 > 0:50:40or there could be a more straightforward refurbishment
0:50:40 > 0:50:45to keep it as a single maisonette which would cost around 20,000.
0:50:45 > 0:50:50So, what was it to be? A full 13 months later we're back.
0:50:52 > 0:50:56At last, the scaffolding has gone from the adjacent building
0:50:56 > 0:50:58and there are new windows and doors.
0:50:58 > 0:51:00Stepping inside...
0:51:03 > 0:51:05..I only see one entrance.
0:51:05 > 0:51:09It looks like they've retained it as a maisonette.
0:51:12 > 0:51:16Yes, the large lounge is a giveaway. Not a bed in sight.
0:51:16 > 0:51:18Instead, a fabulous refurbishment
0:51:18 > 0:51:21with revived parquet flooring and rooms with ceilings.
0:51:21 > 0:51:24There's a novelty!
0:51:24 > 0:51:26There's also a more contemporary look to the fireplace,
0:51:26 > 0:51:28and the kitchen space...
0:51:30 > 0:51:33Wow, that's almost unrecognisable!
0:51:35 > 0:51:39When we bought the property, the kitchen had a big larder,
0:51:39 > 0:51:41brick-built, here. The units were grim
0:51:41 > 0:51:44so we took the larder down
0:51:44 > 0:51:46and we went to go for a white and black finish
0:51:46 > 0:51:50so black floor, white and black units, metro tiles.
0:51:50 > 0:51:54We put plinth lighting in, undercover lighting.
0:51:54 > 0:51:57We're really pleased with the finish of the kitchen.
0:51:57 > 0:52:01They have opted for a refurbishment instead of the flat conversion
0:52:01 > 0:52:04but they've not only gone for high-spec fittings but have also
0:52:04 > 0:52:06made the most of all the space they had here.
0:52:06 > 0:52:09The wall between the two bedrooms upstairs,
0:52:09 > 0:52:13we took that out and put a new one and with a dog leg
0:52:13 > 0:52:16so we now have three double bedrooms as well.
0:52:16 > 0:52:19That neat solution has improved the middle bedroom
0:52:19 > 0:52:22without unduly affecting the second bedroom.
0:52:26 > 0:52:30The master bedroom's also got a little bit extra.
0:52:30 > 0:52:33We put an en-suite in the main bedroom.
0:52:33 > 0:52:36That was a challenge as we didn't want to be too intrusive in the room
0:52:36 > 0:52:38so we put a slight angle on the front
0:52:38 > 0:52:42and we put a smaller shower in but it's still perfectly adequate.
0:52:42 > 0:52:45I've tried it so you can shower and dry in there.
0:52:46 > 0:52:49That en-suite shower room is complemented
0:52:49 > 0:52:52by a fully refurbished bathroom suite.
0:52:56 > 0:52:59All in all, I think this is a pretty impressive change throughout
0:52:59 > 0:53:02but why did they decide to choose plan B over plan A?
0:53:06 > 0:53:09We did apply for planning permission. It took us a while to get it
0:53:09 > 0:53:12but we actually got full planning for the conversion.
0:53:12 > 0:53:15The development we had next door had been very intrusive
0:53:15 > 0:53:18and it became clear that we wouldn't be able to sell or rent the property
0:53:18 > 0:53:21until the development next door was finished
0:53:21 > 0:53:24so we put the whole development on hold
0:53:24 > 0:53:27and we also bought another one in Maidstone.
0:53:27 > 0:53:30We concentrated on that development
0:53:30 > 0:53:34and then it became just too expensive and too difficult, really,
0:53:34 > 0:53:36to do the conversion here so we decided to opt
0:53:36 > 0:53:40for just a straight renovation to do three bedrooms.
0:53:45 > 0:53:48So the delays with the next door made them feel
0:53:48 > 0:53:51they had no option but to go with plan B.
0:53:51 > 0:53:55However, despite it being over a year since we first saw it,
0:53:55 > 0:53:59the work was carried out over just three months.
0:53:59 > 0:54:00The builder did the bulk of it
0:54:00 > 0:54:04and David and his business partner Paul finished off the cosmetic bits
0:54:04 > 0:54:07hoping that would keep their budget in check.
0:54:07 > 0:54:10We originally planned about 20,000 for the renovation
0:54:10 > 0:54:15of the property but we decided to put an en-suite in
0:54:15 > 0:54:19and we put some extra features in.
0:54:19 > 0:54:22Also, because we applied for planning permission with drawings
0:54:22 > 0:54:24and everything else, that put it up,
0:54:24 > 0:54:27so we probably spent a fraction over 22.
0:54:27 > 0:54:32A £22,000 spend on top of the £130,000 purchase price
0:54:32 > 0:54:38will take their total outlay without costs and fees to £152,000.
0:54:38 > 0:54:43So, has opting to keep this as a single dwelling paid off?
0:54:43 > 0:54:45What do two local estate agents think?
0:54:48 > 0:54:51My first impressions of this property are
0:54:51 > 0:54:55it has been exceptionally well renovated to a very high standard.
0:54:55 > 0:54:57I think the standard is excellent.
0:54:57 > 0:55:01Little touches like the nickel on the switches.
0:55:01 > 0:55:04I loved the parquet floor. What he's done with the bedrooms
0:55:04 > 0:55:07with the dog leg in the second bedroom is clever.
0:55:07 > 0:55:10Creating a third double bedroom rather than a third single,
0:55:10 > 0:55:12that should improve his marketability.
0:55:12 > 0:55:14David and business partner Paul haven't decided
0:55:14 > 0:55:19whether to let or sell so hopefully some numbers might help.
0:55:21 > 0:55:23Rental market, I think it will achieve
0:55:23 > 0:55:26approximately £1,000 per calendar month.
0:55:26 > 0:55:27If I put it up for rent,
0:55:27 > 0:55:32it would achieve between 850 and £900 per calendar month.
0:55:32 > 0:55:35I think that's fine, it's about what we would have expected.
0:55:35 > 0:55:39I think we've already got interest at 900,
0:55:39 > 0:55:41so if we get 1,000, that would be great.
0:55:41 > 0:55:45The experts' valuation range would give them a rental yield
0:55:45 > 0:55:51of between 6.5 to 8%, but how might their £152,000 investment fare
0:55:51 > 0:55:54if put up for sale?
0:55:54 > 0:55:57If we were marketing this I would expect it to achieve
0:55:57 > 0:55:59in the region of £200,000.
0:55:59 > 0:56:01If it were to come to the market today,
0:56:01 > 0:56:05I would see it achieving in the region of £200-210,000.
0:56:05 > 0:56:09That would be fantastic because our view was about 180.
0:56:09 > 0:56:12If we can get anything in excess of that, that would be fantastic.
0:56:12 > 0:56:16Well, certainly the resale values are impressive
0:56:16 > 0:56:21with a potential pre-tax profit of between 48 and 58,000.
0:56:21 > 0:56:25With those possible returns, plan A now is to sell,
0:56:25 > 0:56:27but if they don't sell it within a couple of months,
0:56:27 > 0:56:29plan B for rental will be invoked.
0:56:29 > 0:56:33So has David enjoyed this change from the golf course?
0:56:36 > 0:56:37Yes, it's great fun.
0:56:37 > 0:56:41We started this because we both retired and we wanted some projects
0:56:41 > 0:56:44so we've done this one, we've done a property in Maidstone
0:56:44 > 0:56:47and we've had great fun with it. It's been good.
0:56:49 > 0:56:52Well, we hope you enjoyed watching the show
0:56:52 > 0:56:55and perhaps learned a few hints and tips along the way.
0:56:55 > 0:56:58Make sure you join us next time for more Homes Under The Hammer.
0:56:58 > 0:57:00- See you then.- Goodbye.
0:57:03 > 0:57:06Subtitles by Red Bee Media Ltd