Episode 36

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0:00:02 > 0:00:05Welcome to the show. Buying property can have its highs and lows.

0:00:05 > 0:00:10It's not as easy as it seems, especially if you get stuck in a dreaded property chain.

0:00:10 > 0:00:14But you can eliminate that part if you buy at an auction.

0:00:39 > 0:00:43There are all sorts of properties coming up at auction these days.

0:00:43 > 0:00:46And their buyers have a wide variety of plans and budgets.

0:00:46 > 0:00:49So let's see what's on offer on today's show.

0:00:51 > 0:00:53'In Merthyr Tydfil, Mid-Glamorgan,

0:00:53 > 0:00:58'this house solves the question about heating two rooms with one radiator.'

0:00:58 > 0:00:59Just share the one, eh?

0:01:00 > 0:01:05'This semi-detached in London is in great nick and had a low guide price.'

0:01:05 > 0:01:08So far, so good.

0:01:08 > 0:01:10'Is it too good to be true?'

0:01:10 > 0:01:15'I'm near Durham where it takes more than cracked ceilings, dated decor

0:01:15 > 0:01:18'and tiny toilets to dampen my passion for property.'

0:01:18 > 0:01:20But all in all, I'm still excited.

0:01:21 > 0:01:24'All these properties are being sold at auction.

0:01:24 > 0:01:30'We'll find out who bought them and what they paid for them when they went under the hammer.'

0:01:35 > 0:01:40I'm in Mid-Glamorgan, Wales, in an area of Merthyr Tydfil known as the Quar.

0:01:40 > 0:01:46And while the weather may not be on our side today, the property prices most certainly are,

0:01:46 > 0:01:48as you'll see with this place.

0:01:50 > 0:01:57Now, you may know that Cardiff-born writer Terry Nation created the Daleks,

0:01:57 > 0:02:03but what you might not know is the man who actually built them, Bill Roberts, no relation,

0:02:03 > 0:02:05came from Merthyr Tydfil,

0:02:05 > 0:02:11so, the big question is, will today's property be worthy of extermination

0:02:11 > 0:02:13or Da-lek-table?

0:02:14 > 0:02:18This is it - two up, two down, 23 grand. Let's take a look inside.

0:02:22 > 0:02:28Fortunately, from the outside, it doesn't seem to need exterminating, just a bit of titivating.

0:02:28 > 0:02:31Oh, right. Well...

0:02:31 > 0:02:33Nice to get out of the rain, at least.

0:02:33 > 0:02:37So, a fairly narrow corridor into the property.

0:02:37 > 0:02:42Stairs up to your bedrooms and, I don't know what you were expecting here,

0:02:42 > 0:02:46but it is two up, two down, so not a huge amount of space.

0:02:46 > 0:02:51At least this area has been knocked through, so you've got this living room/dining room area.

0:02:51 > 0:02:55It's very dated and, obviously, in need of tender, loving care.

0:02:55 > 0:03:01That bit is fairly cramped, but it gets much worse when you come to the rear of the property

0:03:01 > 0:03:03where this is your kitchen.

0:03:03 > 0:03:06It's a real rabbit hutch

0:03:06 > 0:03:09and, clearly, it's going to have to be addressed.

0:03:09 > 0:03:14So, all in all, well, it's not huge, is it?

0:03:14 > 0:03:17# All the small things

0:03:17 > 0:03:20# True care truth brings... #

0:03:20 > 0:03:23"Cramped" would be an understatement here.

0:03:23 > 0:03:28Imagine throwing a dinner party! You'd have your work cut out with such limited space.

0:03:28 > 0:03:35But on the plus side, there seems to be a new boiler, so let's keep looking for other positives.

0:03:35 > 0:03:38Upstairs, originally, there would have been just two bedrooms.

0:03:38 > 0:03:43The good news is that one bedroom has been converted into a bathroom,

0:03:43 > 0:03:46so it's great to have the bathroom and loo upstairs,

0:03:46 > 0:03:52but in order to still retain this as a two-bedroomed house, they've come up with a rather ingenious solution.

0:03:52 > 0:03:56Stud partition wall and in terms of a radiator...

0:03:56 > 0:03:59Well, just share the one, eh?

0:03:59 > 0:04:02# I'll share my world with you... #

0:04:02 > 0:04:08Well, it's a creative way of cutting down your heating bills, I'll give you that!

0:04:08 > 0:04:14But it's all really impractical, especially since both bedrooms are small,

0:04:14 > 0:04:20so you could turn one of them into a bathroom and restore this good-sized bathroom back into a bedroom.

0:04:20 > 0:04:26Or you could just take out the stud wall and have a nice-sized bedroom up front.

0:04:26 > 0:04:29However, that would affect the value of the house.

0:04:29 > 0:04:32That just leaves the garden. It's not the largest,

0:04:32 > 0:04:36but at least, after the tight spaces inside, it does feel more open.

0:04:36 > 0:04:40You are getting as much as you could expect

0:04:40 > 0:04:42for that £23,000 guide price,

0:04:42 > 0:04:46so what would a local property expert make of it?

0:04:46 > 0:04:48We invited one along to find out.

0:04:48 > 0:04:50First impressions are not great here.

0:04:50 > 0:04:54It's a property that needs complete refurbishment from top to bottom.

0:04:54 > 0:04:59The kitchen needs some major overhaul work.

0:04:59 > 0:05:03The rest of the house is in pretty poor condition at the moment.

0:05:03 > 0:05:05There's damp coming through upstairs.

0:05:05 > 0:05:10It needs a rewire. New ceilings and floors I would advise as well.

0:05:10 > 0:05:12Don't forget the re-plumbing!

0:05:14 > 0:05:21He's right. A total overhaul is needed here, but is it a good area to invest your money in?

0:05:21 > 0:05:25The Quar is an area very close to Merthyr Tydfil town centre.

0:05:25 > 0:05:31It's predominantly ex-workers' cottages, mixed between one, two and three beds,

0:05:31 > 0:05:35but as I said, very close to the town centre.

0:05:35 > 0:05:38And that's always a good selling point.

0:05:38 > 0:05:43Having local amenities is a real plus as well, but let's talk figures.

0:05:43 > 0:05:49If the house was fully renovated, I think the end value would be in the region of £45,000.

0:05:49 > 0:05:53A rental value on here of 350 per calendar month.

0:05:56 > 0:06:02There is no getting away from the fact that this is definitely a house that will need work to sort it out,

0:06:02 > 0:06:04but remember that guide price.

0:06:04 > 0:06:09Spend a little bit of money and you could have yourself a great little home or a rental unit.

0:06:09 > 0:06:14Let's see who fancied it when it went under the hammer.

0:06:14 > 0:06:15Lot number two now,

0:06:15 > 0:06:20which is the mid-terraced house for renovation.

0:06:20 > 0:06:23What shall we say? Start me off, 25,000 for it?

0:06:23 > 0:06:28At 25, can I...? 25, I'm bid straight away. At 25 on the phone.

0:06:28 > 0:06:32At 25. 6 can I see? At 25. 26 standing in the back.

0:06:32 > 0:06:3626 there, out on the phone. 7, is it? Yes or no?

0:06:36 > 0:06:38At 27, thank you. At 27. You're out.

0:06:38 > 0:06:42At 27, it's the telephone bidder. 28 in the room.

0:06:42 > 0:06:46At 28. Tell them to be quicker, please. At 28,000.

0:06:46 > 0:06:48Is it 9? "No," he says.

0:06:48 > 0:06:52At £28,000... It's yours, sir. Thank you.

0:06:52 > 0:06:59'And that bid of £28,000 came from Liam who works as a crane operator for the railways.

0:06:59 > 0:07:06'Liam is a first-time buyer and, with his brother Luke, plans to renovate the place.

0:07:06 > 0:07:11'Luckily for Liam, Luke is a bricklayer by trade and all-round handyman,

0:07:11 > 0:07:14'so he's in good hands for the job ahead.

0:07:14 > 0:07:18'I met them both back at the house to find out more.'

0:07:18 > 0:07:23Liam, Luke, good to meet you both. Congratulations. Why did you want to buy it?

0:07:23 > 0:07:27- I've looked at it for a few years now.- How come?- I live opposite.

0:07:27 > 0:07:33- You live opposite?- Yeah, right opposite there.- Literally, you can see your house...?

0:07:33 > 0:07:37- You can see it through that window there now.- No way!- It's crazy, innit?

0:07:37 > 0:07:43- You've seen it over the last few years?- I've been living opposite for about 10, 15 years now.

0:07:43 > 0:07:49I've seen people coming and going here. It's never been updated. It needs updating, so...

0:07:49 > 0:07:55- How extraordinary that you live in the street! Who do you live with? - My grandparents and my two brothers.

0:07:55 > 0:08:01- A bit cramped then? - Yeah, that's why I'm moving out now, so I can give them a bit more space.

0:08:01 > 0:08:05'Well, this house hasn't exactly got wide-open spaces,

0:08:05 > 0:08:10'but at least for Liam, it will be his own space and a new home.

0:08:10 > 0:08:15'But for these brothers, it seems that it has been a focus of attention for some time.'

0:08:15 > 0:08:21We actually looked at it about three years ago when it was going for 50.

0:08:21 > 0:08:26We looked at it then, hoping to get it then, but it came up better now.

0:08:26 > 0:08:29No kidding, almost half price! How was the auction?

0:08:29 > 0:08:35- A bit nerve-wracking. Obviously, it was my first auction, first house. We didn't know what to expect.- No.

0:08:35 > 0:08:40I was shaking, bidding, but a good price in the end. I was ecstatic, to be honest with you.

0:08:40 > 0:08:44- You were both there and your nan was there as well.- Yeah.

0:08:44 > 0:08:46At the end, I think you gave her a bit of a tug on the cheek.

0:08:46 > 0:08:48That's love, innit.

0:08:48 > 0:08:52So did you get the finances and everything sorted out OK?

0:08:52 > 0:08:58Obviously, a bit of help from my grandparents, my nan especially, she helped with the funding.

0:08:58 > 0:09:00- Aw!- So I'm thankful to her.

0:09:00 > 0:09:05Obviously, she made this...buying this house a dream come true.

0:09:05 > 0:09:06Yeah, fantastic.

0:09:07 > 0:09:13'Liam's grandparents have helped him take his first steps on the property ladder

0:09:13 > 0:09:15'and he does plan to pay them back,

0:09:15 > 0:09:19'but first things first - this place needs some serious work.

0:09:19 > 0:09:21'What are the brothers' plans?'

0:09:21 > 0:09:25Get the house back to the bare bones, really.

0:09:25 > 0:09:27Knock walls down, open plan,

0:09:27 > 0:09:31the stairs will be moving. Basically, new house, really.

0:09:31 > 0:09:35- Are you going to be doing all the work?- Most of the work.

0:09:35 > 0:09:40I'll be overseeing the other trades like the electrician, plumber. That has to be certified.

0:09:40 > 0:09:42I'll do all the construction work,

0:09:42 > 0:09:45we've got to damp-proof this place.

0:09:45 > 0:09:51We've got to strip the back roof, so if I can't do something, then we'll get somebody in.

0:09:51 > 0:09:56But the only people we need in are the plumbers, plasterers and electricians.

0:09:56 > 0:10:01- Everything else, we'll sort that out.- You're doing it for free? - Yeah.- Aw!- It's good, isn't it?

0:10:01 > 0:10:03Yeah, it's fantastic.

0:10:03 > 0:10:09'Liam will still have to pay for materials and other tradesmen when needed,

0:10:09 > 0:10:13'but he has a healthy budget of £20,000.

0:10:13 > 0:10:17'He hopes to have the renovations done in three to four months,

0:10:17 > 0:10:22'but there's one huge bonus about living across the road with his gran.

0:10:22 > 0:10:25'The commute to work should be hassle-free.'

0:10:25 > 0:10:29# It's such a rush just being with you

0:10:29 > 0:10:32# We're driving in the rush hour... #

0:10:32 > 0:10:35What does your grandma think of everything you're doing here?

0:10:35 > 0:10:38- She's loving it. Ecstatic, isn't she?- Yeah.

0:10:38 > 0:10:42The fact you're so close, you'll be able to carry on seeing her.

0:10:42 > 0:10:46Yeah, hopefully. She'll still be making me dinners as well, hopefully!

0:10:46 > 0:10:50- She'll still be cooking you your dinner?!- Taking it across.

0:10:50 > 0:10:56- You could put the menu that you want in the window and she could look at it.- Turn it round.

0:10:56 > 0:11:01- Congratulations. Good luck. We look forward to seeing how you get on.- Thank you.

0:11:04 > 0:11:08Things really couldn't have turned out better for Liam,

0:11:08 > 0:11:14finding a property directly opposite where he's already living, so he can go over to his nan's for his tea.

0:11:14 > 0:11:18And having his brother to help him sort it out, that's great.

0:11:18 > 0:11:22How will he get on though? It's a big job. Find out later in the show.

0:11:28 > 0:11:33Welcome to Wembley in London, popular, of course, with football fans.

0:11:33 > 0:11:38But it's also popular with investors looking for the next property hot spot

0:11:38 > 0:11:41and it's the R-word that gets buyers interested.

0:11:41 > 0:11:43Yes, you've got it - regeneration.

0:11:43 > 0:11:50And with a staggering £90 million in the pot, Wembley is set for a major facelift.

0:11:50 > 0:11:52# But match of the day's

0:11:52 > 0:11:55# The only way

0:11:55 > 0:11:58# We spend our Saturday... #

0:11:58 > 0:12:01The regeneration is approaching the final whistle

0:12:01 > 0:12:06with a new public square, shopping complex and hotel being built.

0:12:06 > 0:12:11That's a hat-trick of development that can only increase property prices.

0:12:11 > 0:12:16The average price of a flat in the Wembley area costs over 195,000,

0:12:16 > 0:12:20so I was delighted to hear about today's auction lot.

0:12:20 > 0:12:27It's a three-bedroom, semi-detached house and it had a guide price of £190,000.

0:12:27 > 0:12:33That's right, I said "house", not "flat", and so that guide price sounds like great value.

0:12:33 > 0:12:40Now, from the outside, it looks freshly painted, so that is a huge bonus.

0:12:41 > 0:12:44Kicking off, we've made a good start.

0:12:44 > 0:12:48No sign of exterior damage and it's double-glazed. Back of the net!

0:12:51 > 0:12:53What a nice surprise!

0:12:53 > 0:12:58The interior has also been freshly painted, so, thumbs up!

0:12:58 > 0:13:04It's a great property, wonderful proportions, and it's got a certain amount of character.

0:13:04 > 0:13:10Look at this lovely door! You've got floorboards. These would look gorgeous once sanded.

0:13:10 > 0:13:16And this, sort of, '30s over-fire mantel, I really like this. So far, so good.

0:13:17 > 0:13:19To the rear is the kitchen.

0:13:19 > 0:13:23Hmm... Rip it out, chuck it and pop in a brand-new one.

0:13:23 > 0:13:27Perhaps you could knock through into the rear reception room.

0:13:27 > 0:13:30I like the French doors to the rear garden -

0:13:30 > 0:13:33brilliant, until you see the garden, that is!

0:13:33 > 0:13:39It's a great size though and it could be a great selling point if landscaped.

0:13:39 > 0:13:42Now, don't you go getting jealous of those neighbours.

0:13:42 > 0:13:46Your garden too could look like that if you've got green fingers.

0:13:46 > 0:13:50And while we're on the subject of neighbours, everybody needs them

0:13:50 > 0:13:54and it helps if those next door have extended

0:13:54 > 0:13:58because it means the council have already given the green light

0:13:58 > 0:14:01and it could help you extend too.

0:14:01 > 0:14:06That is brilliant news. It's also a cracking way to add value to your property

0:14:06 > 0:14:10and it could add as much as £15,000 to this house.

0:14:11 > 0:14:13Let's take a look upstairs.

0:14:15 > 0:14:20There are three fair-sized bedrooms with some period features in good condition

0:14:20 > 0:14:23if a potential purchaser wanted to keep them.

0:14:30 > 0:14:34The bathroom needs work and is separated from the loo.

0:14:34 > 0:14:39Perhaps they could be knocked together to make one larger bathroom.

0:14:39 > 0:14:43Then there's the attic. Could more space be created up there?

0:14:46 > 0:14:51And there's even more ways to add value out here - create some off-road parking.

0:14:51 > 0:14:54They have, they have, they have.

0:14:54 > 0:14:57You've got your neighbours to thank for setting a precedent.

0:14:57 > 0:15:02You won't automatically get approval. It will just strengthen your case.

0:15:02 > 0:15:07You will have to contact the local council and the highway authorities, so they can drop the kerb,

0:15:07 > 0:15:11and you will have a fee to pay, but it's well worth doing.

0:15:11 > 0:15:15Everybody else around here has and it will certainly add value.

0:15:15 > 0:15:18This is certainly a place with plenty of potential.

0:15:22 > 0:15:25We asked a local estate agent to give us his opinion

0:15:25 > 0:15:29on this property which had a guide price of 190,000.

0:15:32 > 0:15:37The accommodation is fairly spacious, typical for a three-bedroom house.

0:15:37 > 0:15:42The two separate reception rooms are normally popular and it's got a lovely, big garden.

0:15:42 > 0:15:44It has good scope to extend.

0:15:44 > 0:15:46Next door have done so on the ground floor.

0:15:46 > 0:15:50It will probably make a nice addition to the back of the house.

0:15:50 > 0:15:56If the house was renovated, keeping its current layout, how much rent could it achieve?

0:15:57 > 0:16:02You could rent the property out for something in the region of £1,450 per calendar month.

0:16:02 > 0:16:04And if sold?

0:16:04 > 0:16:08When the house is refurbished, I think you could probably market it

0:16:08 > 0:16:12at something in the region of £315,000 to £320,000.

0:16:12 > 0:16:18However, if a developer added a rear one-storey extension and an attic conversion,

0:16:18 > 0:16:25as nearby neighbours have done, the estate agent believes it could achieve 350,000.

0:16:25 > 0:16:29There's plenty to ponder with this property development.

0:16:33 > 0:16:36I like this property. It's as simple as that.

0:16:36 > 0:16:40I can't see any major issues and there's scope to add value.

0:16:40 > 0:16:45It's also in an area that's undergoing a real transformation, so that's very exciting.

0:16:45 > 0:16:50Let's see who fancied this opportunity when it went under the hammer.

0:16:52 > 0:16:54230?

0:16:54 > 0:16:58230 anywhere? You tell me. I think it's worth 230.

0:16:58 > 0:17:00One...

0:17:00 > 0:17:02180?

0:17:02 > 0:17:06180, sitting down. Two ladies, 185. 190.

0:17:07 > 0:17:09195.

0:17:09 > 0:17:11200. 205, madam.

0:17:11 > 0:17:14210.

0:17:14 > 0:17:16215.

0:17:16 > 0:17:18220.

0:17:18 > 0:17:20225.

0:17:20 > 0:17:22230.

0:17:22 > 0:17:24235.

0:17:24 > 0:17:26240.

0:17:26 > 0:17:29241? Try and help?

0:17:29 > 0:17:32242, new spot. 243.

0:17:32 > 0:17:35244.

0:17:35 > 0:17:36245.

0:17:36 > 0:17:38246.

0:17:38 > 0:17:39247.

0:17:39 > 0:17:41248.

0:17:41 > 0:17:43249.

0:17:43 > 0:17:45250.

0:17:45 > 0:17:47251. 252.

0:17:47 > 0:17:50Yeah? 253.

0:17:50 > 0:17:53254. 255.

0:17:53 > 0:17:55256.

0:17:55 > 0:17:57257?

0:17:57 > 0:18:00If not, 256 first time...

0:18:00 > 0:18:02Second time.

0:18:02 > 0:18:05Third and last time, are you all done...?

0:18:06 > 0:18:11'The successful bid of 256,000 came from David.

0:18:11 > 0:18:15'But he has just broken into the 3% Stamp Duty threshold,

0:18:15 > 0:18:19'so you can add on almost another 8,000.

0:18:19 > 0:18:24'David was bidding on behalf of his daughter Laura and her partner Alistair

0:18:24 > 0:18:27'who works for David's firm of builders.

0:18:27 > 0:18:31'Laura and Alistair are the proud new parents of five-month-old Colby

0:18:31 > 0:18:36'and while Mum looked after the baby, I chatted to Alistair.'

0:18:36 > 0:18:40- Congratulations.- Thanks.- It's been lovely meeting you and your family.

0:18:40 > 0:18:43So what's the story behind you wanting to buy this?

0:18:43 > 0:18:47Basically, it's a sound property. All the windows are in good nick.

0:18:47 > 0:18:52Everyone's done extensions, so there won't be a problem getting permission.

0:18:52 > 0:18:57Drop the kerbing out the front. There's a lot we can do, rearrange the bathrooms.

0:18:57 > 0:18:59It's quite a simple procedure.

0:18:59 > 0:19:05Absolutely. The good thing here is the precedent has been set in so many different arenas already,

0:19:05 > 0:19:07which is good news for you guys.

0:19:07 > 0:19:11What will you do to change the property internally?

0:19:11 > 0:19:16We might get the permission to put a loft in because it has been done in the other houses.

0:19:16 > 0:19:23We won't do the work. It might be just a selling point, so we'll get the planning permission done for it.

0:19:23 > 0:19:28So that gives whoever takes this property on the chance to do something if they want to.

0:19:28 > 0:19:32'Alistair will be working on the renovation full-time

0:19:32 > 0:19:35'with Laura's dad, David, helping out,

0:19:35 > 0:19:39'while Laura and her mother will be deciding on the decor.

0:19:39 > 0:19:43'Hmm, I wonder what Baby will be doing?'

0:19:43 > 0:19:45# Baby

0:19:45 > 0:19:49# I'm telling you, baby... #

0:19:51 > 0:19:54So, Alistair, tell me about the family being involved.

0:19:54 > 0:19:59- How many of you are there trying to make all these decisions? - There's about five of us.

0:19:59 > 0:20:02You see, too many cooks spoil the broth!

0:20:02 > 0:20:08What we're going to do is get all the decisions done and dusted before we start doing anything,

0:20:08 > 0:20:12so when we come in, we've made the final decision, we don't change back,

0:20:12 > 0:20:16otherwise, you end up spending more money on changing all the time.

0:20:16 > 0:20:19We'll have the final decision before we start.

0:20:19 > 0:20:23Will you be spending a lot of your time here in Wembley?

0:20:23 > 0:20:28I only live down the road, so we'll travel through every day. It'll be a lot easier.

0:20:28 > 0:20:31I've got to go home and see the baby and help change nappies.

0:20:31 > 0:20:37- He's the new addition to your lives. He's gorgeous.- Yes, he's brilliant. I can't complain.

0:20:37 > 0:20:42- He's a very good boy. - Do you hate having to go to work and leave him now?

0:20:42 > 0:20:47It can be a struggle. He seems to wake up every morning when I'm leaving and say goodbye.

0:20:47 > 0:20:53- But it's all good. We get home, have a bit of family time, then he's off to bed.- Fantastic.

0:20:53 > 0:20:56- And Laura will have an input in this project?- Definitely.

0:20:56 > 0:21:00'Alistair wants this property on the market by summer in three months' time.

0:21:00 > 0:21:04'Let's hope he gets the planning permission fast.'

0:21:04 > 0:21:08So what's your budget? How much have you got to spend?

0:21:08 > 0:21:11The family has said 20,000.

0:21:11 > 0:21:15I think we might be closer to 25, 27.

0:21:15 > 0:21:17I think we'll be a little bit into that area.

0:21:17 > 0:21:22- OK, I suppose with the extension, that's going to take a lot of your money up.- Yeah.

0:21:22 > 0:21:28- What would you like to sell this property for once you've put your magic touch on?- Good question.

0:21:28 > 0:21:35It's got to be in the plus 300s, doesn't it, really, by the time we finish what we want to do?

0:21:35 > 0:21:38I think, because you are adding an extension,

0:21:38 > 0:21:43you may go into the loft, you're dropping the kerb, you're doing so much to it,

0:21:43 > 0:21:47- you could probably take it up into the next echelon.- That's the aim.

0:21:47 > 0:21:52- Alistair, good luck. I can't wait to see what you do. Well done. - Thank you.- Thank you.

0:21:53 > 0:21:58Everyone knows their job. I love that. And they all seem confident taking it on.

0:21:58 > 0:22:02But will it be happy families when we return? Only time will tell.

0:22:02 > 0:22:06And how will they get on with that fairly modest budget?

0:22:06 > 0:22:09Will that cash be enough to turn the house around?

0:22:09 > 0:22:14You can find out how Laura and Alistair get on later in the show.

0:22:16 > 0:22:21'Coming up, I'm near Durham, and if you can't say something nice, don't say anything!'

0:22:21 > 0:22:24You can't complain about this property.

0:22:25 > 0:22:29'In Wembley, London, are proud new parents Laura and Alistair pleased

0:22:29 > 0:22:32'with the handiwork on their new property?'

0:22:32 > 0:22:34We're quite happy with the results.

0:22:36 > 0:22:40'First, in Mid-Glamorgan, are the experts impressed with Liam's new home?'

0:22:40 > 0:22:44The house has undergone an impressive transformation since my first visit.

0:22:48 > 0:22:52'It's time to return to Merthyr Tydfil and an area known as the Quar

0:22:52 > 0:22:59'where I viewed this two up, two down terrace which had a guide price of £23,000.

0:22:59 > 0:23:03'The interior decor was dated and the walls were dank and damp-ridden.

0:23:05 > 0:23:09'The property was bought at auction for £28,000 by local lad Liam,

0:23:09 > 0:23:12'and when I say local, I mean local!

0:23:12 > 0:23:16'He lived across the road with his brothers and grandparents.

0:23:19 > 0:23:22'With a helping hand financially from his grandparents

0:23:22 > 0:23:26'and with his brother Luke doing most of the work for free,

0:23:26 > 0:23:29'lucky Liam planned to renovate this as his new home.

0:23:29 > 0:23:34'But as every boy knows, you can't beat a bit of Granny's home cooking.'

0:23:34 > 0:23:38So what does your grandma think of everything you're doing here?

0:23:38 > 0:23:43She loves it. Ecstatic, isn't she? She'll still be making me dinners as well, hopefully!

0:23:43 > 0:23:45She'll still be cooking your dinner?

0:23:46 > 0:23:50'Liam had big plans for this little house,

0:23:50 > 0:23:54'so we're back a whopping one year and two months later.

0:23:54 > 0:23:57'Surely he's finished by now?'

0:24:00 > 0:24:03# Don't you know, don't you know?

0:24:04 > 0:24:06# You're beautiful, don't you know?

0:24:06 > 0:24:11# Oh-oh, don't you know, don't you know?

0:24:11 > 0:24:14# Oh-oh, you're beautiful, don't you know? #

0:24:19 > 0:24:22Wow, what an amazing transformation!

0:24:22 > 0:24:28Earlier, Liam had said he was going to create an all-new house and he's certainly been true to his word.

0:24:28 > 0:24:34It was a full gut, really. A new roof on the house, brand-new kitchen, brand-new bathroom.

0:24:34 > 0:24:36A lot of hard work, but it's gone really well.

0:24:36 > 0:24:39What's turned out best, I think, is the kitchen.

0:24:39 > 0:24:46Obviously, it's a good look, modern, stylish. I'm really happy with it.

0:24:46 > 0:24:52With the building expertise of his brother Luke, Liam created his open-plan kitchen and living area

0:24:52 > 0:24:55by knocking down the rear wall and installing a beam.

0:24:56 > 0:25:00At the back, they knocked down the old extension...

0:25:02 > 0:25:05..and built a new one to house the kitchen.

0:25:06 > 0:25:11We've done a full revamp, really, brand-new roof, guttering, windows.

0:25:11 > 0:25:17The old garden was right up against the old house, obviously causing damp throughout,

0:25:17 > 0:25:21so we've moved the garden back, re-slabbed it, drainage in,

0:25:21 > 0:25:24obviously, just to keep the water off the house.

0:25:24 > 0:25:26And it's gone quite well.

0:25:28 > 0:25:33QUITE well? I'm beginning to believe that Liam is a master of understatement.

0:25:33 > 0:25:36I'm really impressed with his home.

0:25:36 > 0:25:40I particularly like the exposed stone alongside the new staircase.

0:25:40 > 0:25:44It adds a hint of history to this modern makeover.

0:25:45 > 0:25:49Upstairs, a bedroom had been converted into the bathroom and,

0:25:49 > 0:25:54even though the master bedroom had been partitioned into two bedrooms,

0:25:54 > 0:25:56it still shared the one radiator.

0:26:01 > 0:26:08Those two rooms have been restored into one and it's now Liam's bedroom with built-in closet.

0:26:13 > 0:26:16The closet cut across the front left-hand window,

0:26:16 > 0:26:20so Liam bricked it up and rendered and painted the exterior.

0:26:23 > 0:26:27The bathroom has been returned to the second bedroom.

0:26:31 > 0:26:36By moving the staircase forward, Liam created space for his new bathroom.

0:26:39 > 0:26:42A fantastic layout design from Liam,

0:26:42 > 0:26:46but let's not forget his indispensable brother Luke.

0:26:46 > 0:26:50Myself and my brother Luke have done 90% of the work on the house.

0:26:50 > 0:26:54Another friend, Richard, did the other 10%.

0:26:54 > 0:26:56It was a good effort.

0:26:57 > 0:26:59And Luke did it all for...

0:27:00 > 0:27:03..brotherly love. It's a beautiful thing.

0:27:04 > 0:27:07Yeah, I just owe him a little favour.

0:27:10 > 0:27:14Liam had hoped to complete the work in three to four months

0:27:14 > 0:27:18as he and his brother were both working part-time for the railway,

0:27:18 > 0:27:21but their situation changed, causing the delay.

0:27:21 > 0:27:26We were going to be working full-time here and just doing weekend work on the railway,

0:27:26 > 0:27:31but a job became available, good money, so we couldn't turn it down and we just fitted this in.

0:27:31 > 0:27:36Which is why Liam spent £24,000 renovating the house,

0:27:36 > 0:27:43so added to the purchase price of 28,000, that's a total of £52,000.

0:27:46 > 0:27:51We invited two local property experts to see Liam's home.

0:27:52 > 0:27:56The house has undergone a very impressive transformation

0:27:56 > 0:27:58since my first visit.

0:27:58 > 0:28:03The owners have refurbished absolutely everything, top to toe.

0:28:03 > 0:28:07I think that they've done an absolutely fantastic job.

0:28:07 > 0:28:10They've enhanced it to its maximum potential.

0:28:11 > 0:28:16The experts are impressed with Liam and Luke's handiwork.

0:28:17 > 0:28:21Liam spent £52,000 purchasing and renovating his new home.

0:28:21 > 0:28:25What do the agents believe it could achieve if sold?

0:28:25 > 0:28:32If he was to sell this property, I would estimate the value to be in the region of £60,000 to £65,000.

0:28:32 > 0:28:37In today's market, a property in this location, in this type of condition,

0:28:37 > 0:28:39would sell in the region of £65,000.

0:28:40 > 0:28:48Those figures would give Liam a potential profit of up to £13,000, minus the usual selling expenses.

0:28:48 > 0:28:55On the rental market, the agents believe it could achieve as much as £450 per calendar month.

0:28:56 > 0:29:01That would give Liam a rental yield of just over 10%,

0:29:01 > 0:29:05a wise investment should he ever decide to sell or rent it out.

0:29:08 > 0:29:15All Liam needs to do now is move in. Let's hope he puts his fantastic kitchen to good use

0:29:15 > 0:29:19and gives Gran a break from cooking his meals.

0:29:19 > 0:29:21I feel really excited about moving in.

0:29:21 > 0:29:26Just last Friday I moved into this house. But part still over at my nan's house,

0:29:26 > 0:29:29but I'll be moving in full-time this weekend, hopefully.

0:29:29 > 0:29:33It's going to be a bit new, but I'm looking forward to it.

0:29:33 > 0:29:35And so he should be.

0:29:35 > 0:29:39After all his hard work, it's time to put his feet up.

0:29:39 > 0:29:42I wonder if there's anything good on TV.

0:29:42 > 0:29:45Ah, now there's a handsome rogue, if I ever saw one!

0:29:50 > 0:29:57Beautiful County Durham has a strong association with its coal-mining heritage.

0:29:57 > 0:30:01The location of today's auction lot is a part of that legacy.

0:30:01 > 0:30:06Well, just a few miles from Durham in the small former pit village of Bowburn

0:30:06 > 0:30:09is the property I'm here to see.

0:30:09 > 0:30:15Three-bedroom semi-detached. Looks a bit shabby from outside, but wait until you hear the guide price.

0:30:15 > 0:30:19£25,000 plus. It's got to be worth a look.

0:30:21 > 0:30:25'Shabby, but ripe for an injection of chic, I reckon.'

0:30:27 > 0:30:33'I'm not loving the look of those single-glazed windows, the crumbly doorstep's not great

0:30:33 > 0:30:37'and from here I can see that the gutters need a clean.

0:30:37 > 0:30:42'But it all looks solid enough. Maybe the chic is inside.'

0:30:44 > 0:30:46So what kind of condition is it in?

0:30:48 > 0:30:52Er...the jury's out for now, but an entrance hall here.

0:30:52 > 0:30:57That's a bit unusual! A few steps up to what I think is a little loo.

0:30:57 > 0:31:01I haven't seen anything like that before.

0:31:01 > 0:31:07But the more loos the better. Something I do not like is this on the staircase here.

0:31:07 > 0:31:12Look at the space. That is a real risk, especially if you've got kids.

0:31:12 > 0:31:15But through to the kitchen and...uh...

0:31:15 > 0:31:19That is another potential risk.

0:31:19 > 0:31:23I'm not certain, but I think they may be asbestos panels.

0:31:23 > 0:31:26It fits in with the kind of age of the house.

0:31:26 > 0:31:30If they are asbestos, they need to be disposed of very carefully by a specialist.

0:31:30 > 0:31:35You definitely shouldn't play around or touch them. But not a bad size.

0:31:35 > 0:31:39It could be bigger. You've got this little area here.

0:31:39 > 0:31:41A bit of a coal storage area.

0:31:41 > 0:31:47Think about taking out these walls. There's another little area there.

0:31:47 > 0:31:51That would give a bit more space, but, all in all, I'm still excited.

0:31:51 > 0:31:54# Ah, freak out... #

0:31:54 > 0:31:58If you suspect there is asbestos in your property,

0:31:58 > 0:32:02particularly if it was built pre-mid-1980s,

0:32:02 > 0:32:06you don't need to freak out, but you do need to get professional advice

0:32:06 > 0:32:12either from a specialist firm or your local council about its safe removal.

0:32:12 > 0:32:16And now into the sitting room.

0:32:16 > 0:32:21That fireplace is very grand. You might want to tone that down a bit,

0:32:21 > 0:32:26but there's plenty of room here for a dining table and sitting area.

0:32:26 > 0:32:30A potentially rather costly issue is the central heating system.

0:32:30 > 0:32:35It's coal-fired, which explains the coal store just off the kitchen.

0:32:35 > 0:32:39So I'd say a gas supply and a new combi boiler is a must.

0:32:39 > 0:32:43I don't think this is going to be a quick and easy renovation.

0:32:46 > 0:32:50Well, upstairs and more of this dreadful banister design.

0:32:50 > 0:32:52It really needs to be sorted.

0:32:52 > 0:32:55Apart from that up here, though, a good size.

0:32:55 > 0:32:57The bathroom and loo need to be refurbished,

0:32:57 > 0:33:01but it's not at all bad. It's where it should be.

0:33:01 > 0:33:06Front of the property, a small single bedroom and then two good-sized doubles.

0:33:06 > 0:33:12In terms of accommodation, well, you can't complain about this property.

0:33:12 > 0:33:16It needs a bit of work, but, hey, what do you expect?

0:33:18 > 0:33:21First thing I'd want to do is to put in new double-glazed windows

0:33:21 > 0:33:26to keep in the heat and block out passing traffic noises.

0:33:27 > 0:33:33But with a new bathroom suite and a freshen up of the bedrooms, you've got a fair amount of space.

0:33:33 > 0:33:37Back outside, there's a useful-looking shed behind the house,

0:33:37 > 0:33:40then you're through to the garden proper.

0:33:40 > 0:33:44In the rear garden there is a really good-sized space,

0:33:44 > 0:33:49so I'm immediately thinking family home, especially for pet lovers,

0:33:49 > 0:33:56but you also get an idea of the state of the fabric of some of this house, particularly under windows.

0:33:56 > 0:34:02Those sills need replacing, so that's going to add at least 200-300 quid

0:34:02 > 0:34:04to the price of replacing the windows.

0:34:06 > 0:34:08The to do list is getting pretty long,

0:34:08 > 0:34:10but I think there's money to be made here.

0:34:10 > 0:34:14We asked along a local estate agent to see what he thought

0:34:14 > 0:34:19of the potential of this semi with its guide price of £25,000 plus.

0:34:20 > 0:34:24It's a popular design of property, in need of updating,

0:34:24 > 0:34:27but it has always proved to be a popular property

0:34:27 > 0:34:29for first-time buyers.

0:34:29 > 0:34:34Once done up, what kind of rental could you earn here?

0:34:34 > 0:34:41Once completed, the property should be able to achieve somewhere in the region of £450 per calendar month.

0:34:41 > 0:34:49Bearing in mind that £25,000 guide price, what about putting the refurbished property up for sale?

0:34:50 > 0:34:57Once renovated, the property should be able to achieve somewhere in the region of £75,000-£80,000.

0:34:57 > 0:35:03# ..let's watch the flowers grow. #

0:35:06 > 0:35:12Well, there's work to be done to sort it out, but you're buying into an area that's on the up

0:35:12 > 0:35:18and the property's pretty substantial. Let's find out who fancied it under the hammer.

0:35:19 > 0:35:21Lot number 15.

0:35:21 > 0:35:26A three-bed semi-detached property. Can I have £25,000 to start?

0:35:26 > 0:35:29Any bid of 25 anywhere?

0:35:29 > 0:35:3023?

0:35:31 > 0:35:3421? I'm meant to be going up.

0:35:34 > 0:35:37Anyone at 21? Two of you. Back wall at 21.

0:35:37 > 0:35:4022? 22 bid. 23?

0:35:40 > 0:35:4424? 25. 26.

0:35:44 > 0:35:48A new bid at 27,000. It's against you.

0:35:48 > 0:35:4928?

0:35:50 > 0:35:5327 and a half bid.

0:35:53 > 0:35:5428?

0:35:54 > 0:35:5728 to the lady immediately behind you.

0:35:57 > 0:35:5929,000 at the front. 30,000?

0:35:59 > 0:36:0230,000 bid. 31?

0:36:02 > 0:36:0332?

0:36:03 > 0:36:0532 bid.

0:36:05 > 0:36:0733? 34?

0:36:07 > 0:36:12I'll be kind and take 500. 33 and a half?

0:36:12 > 0:36:1533 and a half bid. 34? 34 and a half?

0:36:15 > 0:36:17No?

0:36:17 > 0:36:1934 and a half. New bidder.

0:36:19 > 0:36:2235. 35 and a half? 36.

0:36:22 > 0:36:2636 and a half. 37. 37 and a half?

0:36:26 > 0:36:3038. 38 and a half? 39.

0:36:30 > 0:36:3239 and a half. 40.

0:36:32 > 0:36:3541. 42?

0:36:35 > 0:36:40At £41,000. Gentleman on the right-hand side. 41 and a half? 41 and a half bid.

0:36:40 > 0:36:4342? 42 bid. And a half.

0:36:43 > 0:36:4843. And a half? It's 43,000. The gentleman on the right-hand side.

0:36:48 > 0:36:53No? The gentleman at 43,000. We're here to sell. Last chance.

0:36:53 > 0:36:58Once at 43. For the second time at £43,000. Congratulations,

0:36:58 > 0:37:02the gentleman on the right-hand side at £43,000.

0:37:02 > 0:37:07That successful bid of £43,000, almost £20,000 over the guide price,

0:37:07 > 0:37:13was made by local mortgage consultant Ian, who attended the auction with his wife, Sandra.

0:37:13 > 0:37:17I met Sandra and daughter Lindsay to find out their plans.

0:37:20 > 0:37:26- Lovely to meet you. Congratulations.- Thank you.- Tell me why you wanted to buy this place.

0:37:26 > 0:37:30We just sold our house and we're in rented accommodation.

0:37:30 > 0:37:35Me and my husband decided we wanted to go into buying and selling property.

0:37:35 > 0:37:37- To do it up and sell it on? - Yes.

0:37:37 > 0:37:42- What's your involvement, Lindsay? - I'll help do up the house.

0:37:42 > 0:37:49I work most of the week in the city, in London. At the weekend, I'll be here Friday, Saturday, Sunday.

0:37:49 > 0:37:56Everything. So from taking out kitchens to smashing walls down! Everything.

0:37:56 > 0:38:02- Pretty hands on.- What do you think about them doing this stuff? - They're a bit crazy, to be honest!

0:38:02 > 0:38:09- Really?- No, it's always been their dream since I was little. They used to do houses out.

0:38:09 > 0:38:14'It looks like they'll all be pretty busy.

0:38:14 > 0:38:19'The first priority is new double-glazed windows.

0:38:19 > 0:38:22'Then it sounds like the whole house is going to be gutted

0:38:22 > 0:38:28'and there's good news about the kitchen ceiling - it's been checked and is not asbestos.'

0:38:30 > 0:38:35Upstairs, we're just going to strip back to the bare walls, plaster.

0:38:35 > 0:38:42The bathroom, we'll strip that out and put a new suite in, shower over the bath as there's no room.

0:38:42 > 0:38:47- Yep.- And, erm, I think we need to do the staircase

0:38:47 > 0:38:50- because the rails are too wide. - Definitely.

0:38:50 > 0:38:53For a child, it's not very safe.

0:38:53 > 0:38:58And there's that little toilet on the landing. I've never seen one in that way before.

0:38:58 > 0:39:01But we plan on keeping it in.

0:39:01 > 0:39:06We'll do it out with a new toilet and put a hand basin in there.

0:39:06 > 0:39:10Hopefully, in the kitchen we'll knock some walls out, if we can.

0:39:10 > 0:39:13- Oh, right.- To make it a bit bigger. - Great. Which walls?

0:39:13 > 0:39:16Well, there's the coal house and an old pantry,

0:39:16 > 0:39:19so that'll knock further back

0:39:19 > 0:39:21and then the chimney breast from the fireplace.

0:39:21 > 0:39:24It goes into the kitchen, so, hopefully

0:39:24 > 0:39:30- we might be able to block that off. - So big, big jobs, actually, some of the things you're contemplating.

0:39:30 > 0:39:33Any idea of a budget for it?

0:39:33 > 0:39:35We planned £15,000-£20,000,

0:39:35 > 0:39:38but we have a bit extra if it goes over.

0:39:38 > 0:39:40- But hopefully 20.- Right.

0:39:40 > 0:39:46- And in terms of timescales? - Hopefully, six months, within that.

0:39:47 > 0:39:52'That seems a sensible timescale for the amount of work to be done

0:39:52 > 0:39:56'and there's the central heating to be sorted, too.

0:39:56 > 0:39:58'Sandra and Ian plan to sell the house on,

0:39:58 > 0:40:01'but is there a back-up plan?'

0:40:01 > 0:40:05Tough times at the moment, you can never predict the property market.

0:40:05 > 0:40:10- What happens if you can't sell? - We haven't thought about that yet!

0:40:10 > 0:40:15Possibly just hold it, leave it on the market.

0:40:15 > 0:40:20We're not in no rush. The money was in the bank, so...

0:40:20 > 0:40:25- Would you rent it out, perhaps? - We'd have to think about that one. We haven't considered it.

0:40:25 > 0:40:29There's no harm in renting it out until the property sells.

0:40:29 > 0:40:33Do you see this being the re-start of your passion for property?

0:40:33 > 0:40:38Yes, we plan on using the money we make for the next project.

0:40:38 > 0:40:41And it'll continue, hopefully.

0:40:41 > 0:40:45- Congratulations.- Thank you.- We look forward to seeing how you get on.

0:40:45 > 0:40:46- Thank you.- Thank you.

0:40:48 > 0:40:54Well, the family have re-entered the property market in a good area that's certainly on the up.

0:40:54 > 0:41:00I am a little bit concerned that if they can't sell it, they're not sure about renting it.

0:41:00 > 0:41:04Find out how they get on later in the show.

0:41:07 > 0:41:13It's been a while now since we last saw our purchasers. Have they been racing on with the work?

0:41:13 > 0:41:17Or has the project ground to a complete halt? Let's find out.

0:41:18 > 0:41:22Let's make our way back to Wembley,

0:41:22 > 0:41:29where I viewed this three-bedroom semi-detached, which had a guide price of £190,000.

0:41:30 > 0:41:37The interior wasn't in bad nick, but had damp-ridden walls and crumbling, cracked plasterwork.

0:41:37 > 0:41:42However, the big bonus with this house was the ability to add value.

0:41:42 > 0:41:45Neighbours had added rear extensions and attic conversions.

0:41:47 > 0:41:52At the front, neighbours have also dropped the kerb to create off-road parking,

0:41:52 > 0:41:57another sought-after feature in busy suburbs where parking is at a premium.

0:41:58 > 0:42:06This property was bought at auction for £256,000, just hitting the 3% Stamp Duty threshold.

0:42:06 > 0:42:11It's a family investment with builder Alistair, his partner Laura

0:42:11 > 0:42:15and her mum and dad, who is also a builder, getting involved.

0:42:15 > 0:42:19So, what's the story behind you wanting to buy this at auction?

0:42:19 > 0:42:21Basically, it's a sound property.

0:42:21 > 0:42:24Everyone's done extensions, so we'll get permission.

0:42:24 > 0:42:27Dropped kerbing at the front.

0:42:27 > 0:42:34The good thing is the precedent has been set in so many different arenas already, which is good news for you.

0:42:36 > 0:42:43'Laura planned to do it up and sell it on, so after 3½ months, let's see if this property is a backbreaker

0:42:43 > 0:42:45'or a moneymaker.'

0:42:45 > 0:42:51# You've got the moneymaker You've got the moneymaker

0:42:51 > 0:42:54# You showed them what you can do

0:42:54 > 0:42:57# This is your chance to make it

0:43:00 > 0:43:02# Oh, yeah

0:43:05 > 0:43:07# Oh, yeah... #

0:43:08 > 0:43:13Alistair's added value has certainly added instant impact.

0:43:13 > 0:43:17Basically, this was just an old little dining room.

0:43:17 > 0:43:23So what we've done is, the building ended here, we've taken the door out and put the extension on through,

0:43:23 > 0:43:28which has given us an extra kitchen now, larger than what used to be here.

0:43:28 > 0:43:33And we're quite happy with how the results have turned out.

0:43:33 > 0:43:35The extension has worked wonders,

0:43:35 > 0:43:39creating a family-sized open-plan kitchen and dining room.

0:43:39 > 0:43:43Alistair has added what every family wants - a second toilet -

0:43:43 > 0:43:45by using the space under the stairs.

0:43:48 > 0:43:52New wood flooring has been added throughout the ground floor,

0:43:52 > 0:43:54integrating the new extension,

0:43:54 > 0:43:59rather than it feeling like an add-on.

0:44:02 > 0:44:06In the sitting room, I'd like to have seen more made of the fireplace

0:44:06 > 0:44:11to help create that all-important, eye-catching first impression.

0:44:13 > 0:44:18The walls are now whiter than white and while Alistair's been busy doing the heavy lifting,

0:44:18 > 0:44:24with help from Laura's dad, it's now time for Laura and her mum to design the interior.

0:44:24 > 0:44:29They will be coming in now putting the finishing touches on.

0:44:29 > 0:44:36The woman's touch that we don't have! Just to make it a bit more attractive and it'll sell faster.

0:44:36 > 0:44:44At the front, work is progressing with off-road parking, but permission's needed to drop the kerb

0:44:44 > 0:44:49and that's proving harder to get than they'd hoped.

0:44:49 > 0:44:52Off-road parking, we've had trouble with it.

0:44:52 > 0:44:58Apparently, my artwork's not good enough in the drawings. We've had it sent back three or four times now.

0:44:58 > 0:45:01It's just taking a bit longer than expected

0:45:01 > 0:45:05so we're basically trying to get that sorted out

0:45:05 > 0:45:09and once that's done we can drop the kerb and it's good to go.

0:45:10 > 0:45:13Let's take a look upstairs.

0:45:13 > 0:45:18The property has three bedrooms - a single and two good-sized doubles.

0:45:20 > 0:45:24The walls have been painted white and a new carpet laid.

0:45:25 > 0:45:30I'm sorry to see that the original fireplaces have been removed

0:45:30 > 0:45:34because I liked the period charm they gave the place.

0:45:36 > 0:45:39But Alistair has kept the original doors

0:45:39 > 0:45:41to retain some period character.

0:45:44 > 0:45:48The bathroom and separate toilet needed remodelling

0:45:48 > 0:45:50and a new suite.

0:45:51 > 0:45:55He has done well to combine the two rooms,

0:45:55 > 0:45:58creating a good-sized family bathroom.

0:45:58 > 0:46:02Alistair had hoped to have the renovation done in three months,

0:46:02 > 0:46:07but there's one thing no developer can control - the weather.

0:46:07 > 0:46:12It's taken a little bit longer than expected to.

0:46:12 > 0:46:17We had a couple of weather delays and cold snaps and we couldn't build the extension.

0:46:17 > 0:46:22And the last couple of weeks hasn't stopped raining, so we couldn't work outside.

0:46:22 > 0:46:26We've got about another two weeks' work and then we'll be ready to go.

0:46:29 > 0:46:32The bad weather caused the spending to increase

0:46:32 > 0:46:35as specialist trades, such as the electrician,

0:46:35 > 0:46:37took longer than budgeted to complete.

0:46:37 > 0:46:41Laura and her parents had hoped to have it all done for £20,000,

0:46:41 > 0:46:45but Alistair always felt that was on the low side.

0:46:45 > 0:46:48The budget, we're a little bit over.

0:46:48 > 0:46:52I'd say we're going to be in the vicinity of £28,000-£32,000

0:46:52 > 0:46:54once we've finished.

0:46:54 > 0:46:57The family decided to save money by not applying

0:46:57 > 0:47:00for planning permission to convert the attic.

0:47:00 > 0:47:06Alistair believes the total investment on this renovation will be around £310,000,

0:47:06 > 0:47:10including purchase price, Stamp Duty and all costs and fees.

0:47:13 > 0:47:17Alistair's quality craftsmanship can be seen throughout,

0:47:17 > 0:47:21but by not applying for planning permission for the attic conversion,

0:47:21 > 0:47:25has he maximised the potential to add value?

0:47:29 > 0:47:33We asked two local estate agents for their opinions.

0:47:33 > 0:47:38First impressions on the house are that he's done a lot of work,

0:47:38 > 0:47:40the downstairs extension is great.

0:47:40 > 0:47:45It's given him a nice-sized kitchen and also a breakfast eating area,

0:47:45 > 0:47:47which is very popular these days.

0:47:47 > 0:47:52It's a well-presented, three-bedroom semi-detached house.

0:47:52 > 0:47:55It's got modern fixtures and fittings in kitchen and bathroom

0:47:55 > 0:47:59and I'm sure it'll attract buyers.

0:48:00 > 0:48:06The property will be put up for sale. Remembering that investment of around £310,000,

0:48:06 > 0:48:12do the estate agents believe Alistair has added enough value to make a profit?

0:48:12 > 0:48:14I would ask £340,000 for the house

0:48:14 > 0:48:20and would expect to receive somewhere in the region of £325,000-£330,000.

0:48:20 > 0:48:25We would look to achieve, in the current market, £325,000.

0:48:26 > 0:48:31Those figures would mean a potential profit of £15,000-£20,000.

0:48:31 > 0:48:37Is Alistair pleased with those figures for his 4½ months hard graft?

0:48:37 > 0:48:41The resale figures are quite satisfactory. We're happy with that.

0:48:41 > 0:48:44As long as we achieve them, then all good.

0:48:46 > 0:48:50Since filming, Alistair has completed all the works,

0:48:50 > 0:48:52landscaped the rear garden,

0:48:52 > 0:48:56finished the drive and finally got permission to drop the kerb.

0:48:56 > 0:49:03The property's now up for sale for £335,000, so will he buy from an auction again?

0:49:03 > 0:49:08Definitely. As long as the property sells and we make some money,

0:49:08 > 0:49:10then, yeah, we'd love to do it.

0:49:16 > 0:49:19Back now to County Durham and this three-bed semi in Bowburn,

0:49:19 > 0:49:24bought at auction by Ian and his wife Sandra for £43,000.

0:49:24 > 0:49:28This renovation was going to be a real family affair

0:49:28 > 0:49:33with daughter Lindsay coming up from London on weekends to help out.

0:49:33 > 0:49:39- What do you think about them getting involved in this?- A bit crazy, to be honest!- Really?

0:49:39 > 0:49:41No, it's always been their dream.

0:49:41 > 0:49:45They used to do houses out, so it's getting back to that.

0:49:45 > 0:49:50- Do you see this being the restart of your passion for property?- Yes.

0:49:50 > 0:49:55We plan on using the money that we make from it in the next project.

0:49:57 > 0:50:02With a £15,000-£20,000 budget and a six-month timescale,

0:50:02 > 0:50:06there's quite a lot to sort out with new central heating

0:50:06 > 0:50:09and new windows and sills topping the list.

0:50:10 > 0:50:13Well, 5½ months later, we're back.

0:50:13 > 0:50:18It looks like Lindsay has a new hairstyle and a baby bump as well.

0:50:18 > 0:50:23Let's not forget about the house. That's undergone some changes, too.

0:50:24 > 0:50:27# Liz Taylor is not his style

0:50:29 > 0:50:32# And even Lana Turner's smile

0:50:34 > 0:50:36# Is something he can't see

0:50:40 > 0:50:46# My baby don't care who knows it

0:50:48 > 0:50:53# My baby just cares for me... #

0:50:59 > 0:51:03Well, I think things here are looking blooming wonderful,

0:51:03 > 0:51:07but has young Lindsay been as hands-on as she hoped she might be?

0:51:07 > 0:51:12Er, I tried to be here, but when I found out I was pregnant,

0:51:12 > 0:51:14I couldn't spend much time here,

0:51:14 > 0:51:18so I had to stay out of the way more.

0:51:18 > 0:51:19Quite right, too.

0:51:19 > 0:51:23But while Lindsay was preparing for a different kind of labour,

0:51:23 > 0:51:27Mum and Dad have been pretty busy here in the last few months.

0:51:27 > 0:51:29So what's changed exactly?

0:51:32 > 0:51:36Everything from bringing the gas into the house

0:51:36 > 0:51:41to doors and windows, stripping walls, plastering walls,

0:51:41 > 0:51:45ceiling, new kitchen, new bathroom, downstairs toilet and carpets.

0:51:47 > 0:51:51What have they been getting up to upstairs?

0:51:53 > 0:51:57A new bathroom's been put in, all the bedrooms were stripped down,

0:51:57 > 0:52:02new floorboards have been put in one of the bedrooms,

0:52:02 > 0:52:05carpets, everything you can think of, through to windows.

0:52:05 > 0:52:10Has the renovation gone nice and smoothly?

0:52:11 > 0:52:15There was one problem when Ian's foot went through the ceiling!

0:52:15 > 0:52:17He had to put a new ceiling up.

0:52:17 > 0:52:22He put his foot through one of the floorboards and came through the ceiling in the kitchen,

0:52:22 > 0:52:25but apart from that it's gone swimmingly!

0:52:27 > 0:52:32Thankfully, no lasting damage there to husband or house.

0:52:32 > 0:52:36The new kitchen is a big improvement on what was here before -

0:52:36 > 0:52:38bright, light and spacious.

0:52:40 > 0:52:44This was the kitchen, where we had the coal house and the pantry.

0:52:44 > 0:52:46We got all that knocked down.

0:52:46 > 0:52:51There was a chimney breast across that wall. That was knocked down.

0:52:51 > 0:52:58Then we had the walls and ceiling plastered, when my husband's foot knocked the ceiling down!

0:52:58 > 0:53:04Then there was central heating put in and we've had the floors and the kitchen put in.

0:53:04 > 0:53:08And this is where the combi boiler is, in this cupboard here.

0:53:08 > 0:53:13So it's out the way and I'm quite happy with the results.

0:53:16 > 0:53:20The new patio doors in the sitting room make this a lovely family space

0:53:20 > 0:53:22and if you ignore the pouring rain

0:53:22 > 0:53:27things are looking up on the outside, with new uPVC windows.

0:53:27 > 0:53:31And the wilderness that was the garden?

0:53:34 > 0:53:38Well, talk us through the changes here, Sandra.

0:53:38 > 0:53:45What we did in the garden was we actually gutted it all. It was quite a mess, overgrown with weeds.

0:53:45 > 0:53:51And we've had the tree surgeons in to cut a lot of trees down cos there was quite a lot.

0:53:51 > 0:53:56I'm quite pleased with the result. I'm really happy.

0:53:57 > 0:54:03Job well done, I'd say. And with the monoblock out front power-washed,

0:54:03 > 0:54:06the house really is looking the business now.

0:54:06 > 0:54:11And done in just under their six-month timescale, which is great.

0:54:11 > 0:54:17- But what about their £15,000-£20,000 budget?- We didn't stick to it! We went way over.

0:54:17 > 0:54:22It was 22 in the house and it cost 24 with the outside,

0:54:22 > 0:54:29but half of it was on the decking, so, you know, £24,000.

0:54:31 > 0:54:35I think that's still pretty good given how much they've had to do.

0:54:35 > 0:54:40Including the purchase price of £43,000, the total outlay is £67,000.

0:54:40 > 0:54:44We asked along two local estate agents to see what they make

0:54:44 > 0:54:47of the refurbished property.

0:54:47 > 0:54:49The refurbishment work

0:54:49 > 0:54:56is extremely good in terms of the quality of the finish and making more space in the kitchen area.

0:54:56 > 0:55:00It's a well-finished property. Good-size bedrooms,

0:55:00 > 0:55:03good-size garden, in a popular area.

0:55:05 > 0:55:08What could the semi fetch as a rental?

0:55:10 > 0:55:16On the rental market at the moment, it should achieve in the region of £450-£475 per calendar month.

0:55:16 > 0:55:21Potentially, we could expect to achieve a rental of about £500 per calendar month.

0:55:21 > 0:55:27I don't think we're looking to rent it out anyway. If we can sell it, that's what we aim to do.

0:55:27 > 0:55:34If they did let the property, they could be looking at a pretty healthy yield of around 8% or 9%,

0:55:34 > 0:55:40but the house is already on the market to sell, so what do the experts think it should fetch?

0:55:40 > 0:55:44In the current climate, I would reckon it would achieve somewhere

0:55:44 > 0:55:46in the region of £85,000-£90,000.

0:55:46 > 0:55:49I'd value this property at £90,000.

0:55:49 > 0:55:51That's about what we thought.

0:55:51 > 0:55:57As long as we make a little bit off it, it's more of a learning curve.

0:55:58 > 0:56:02Selling on for £85,000 or £90,000 could mean a pre-tax profit,

0:56:02 > 0:56:07before fees and expenses, of £18,000-£23,000,

0:56:07 > 0:56:11which is really pretty good for a learning curve.

0:56:11 > 0:56:13But have they enjoyed the process?

0:56:13 > 0:56:16It's been a good experience.

0:56:16 > 0:56:18I think I would do it again.

0:56:18 > 0:56:23Definitely, when you add the figures up, it's a healthy profit, so yeah.

0:56:23 > 0:56:29Well, good luck to them with the house and the baby when it comes along.

0:56:29 > 0:56:34# Baby, I love, I love you... #

0:56:37 > 0:56:40Well, the world of property is never boring,

0:56:40 > 0:56:44but you do need to know what you're doing and we can help.

0:56:44 > 0:56:47So see you next time for some more cautionary tales

0:56:47 > 0:56:51- and success stories on Homes Under The Hammer.- Goodbye!

0:57:07 > 0:57:10Subtitles by Red Bee Media Ltd