0:00:02 > 0:00:04Even with the property market struggling,
0:00:04 > 0:00:07those glamorous houses we see in newspapers and magazines,
0:00:07 > 0:00:08they still tempt us.
0:00:08 > 0:00:13They may have become even more unaffordable for some of us now.
0:00:13 > 0:00:18However, if you're trying to bag a bargain and find an interesting property at the same time,
0:00:18 > 0:00:21you could do worse than head down to your local auction.
0:00:47 > 0:00:51There are a vast array of properties that come up for auction
0:00:51 > 0:00:54every month in the UK, from bungalows to flats,
0:00:54 > 0:00:56to plots of land ripe for development.
0:00:56 > 0:01:00That's right. Whatever you're looking for you can usually find something that fits the bill.
0:01:00 > 0:01:03Here are the properties that got our buyers' arms waving
0:01:03 > 0:01:05in the auction rooms today.
0:01:08 > 0:01:11In Northumberland, this bungalow is trying to start a new trend
0:01:11 > 0:01:14with patio doors inside the property.
0:01:14 > 0:01:15What on earth is going on here?
0:01:16 > 0:01:22In this top floor flat in Fulham, London, I've got a case of cupboard love.
0:01:22 > 0:01:26Oh, and a bit of cheeky space to play with in that cupboard!
0:01:28 > 0:01:31I think this pet shop with a flat above in Devon is a great bet,
0:01:31 > 0:01:34but you better ask the residents.
0:01:34 > 0:01:36What do you think?
0:01:38 > 0:01:41All these properties are being sold at auction.
0:01:41 > 0:01:44We'll find out who bought them and what they paid for them
0:01:44 > 0:01:46- when they went Under The Hammer. - Sir, yours.
0:01:51 > 0:01:54This is Cramlington in Northumberland,
0:01:54 > 0:01:56just ten miles from Newcastle.
0:01:56 > 0:02:01Cramlington is, in fact, a new town laid out in the 1960s,
0:02:01 > 0:02:05but today's auction lot has an interesting history,
0:02:05 > 0:02:07which predates that by some 50 years.
0:02:07 > 0:02:11I'm here about a mile from the centre of Cramlington
0:02:11 > 0:02:17to see a semi-detached bungalow that was built around 1910 by the RAF
0:02:17 > 0:02:20in connection with a local airship base.
0:02:23 > 0:02:27The guide price was a very specific £54,950
0:02:27 > 0:02:29and for that there's an added bonus.
0:02:29 > 0:02:31You do get a bomb-proof roof.
0:02:33 > 0:02:36More on that particular bombshell later.
0:02:36 > 0:02:39But it does all look neat and tidy from the outside,
0:02:39 > 0:02:43with UPVC double glazing, tick! There's a new door, tick!
0:02:43 > 0:02:48Out back, there's plenty of off-street parking under a car port, tick!
0:02:48 > 0:02:51And a bit of outside space, too, so that's a...
0:02:51 > 0:02:53# Tick, tick, tick, tick, boom
0:02:53 > 0:02:56# Yo, are y'all ready for me yet? Pump it up, Chris
0:02:56 > 0:02:58# Yo, are y'all ready for me yet? Pump it up, Chris
0:02:58 > 0:03:01# Yo, are y'all ready for me yet? Pump it up, Chris
0:03:01 > 0:03:04# Well here I go, here I go, here I here I here I go, yo. #
0:03:04 > 0:03:07So, what is on offer?
0:03:07 > 0:03:11Is it a bombsite or not?
0:03:11 > 0:03:13Actually, no not too bad.
0:03:13 > 0:03:15There's a dining area over that way
0:03:15 > 0:03:18and this nice-sized living room, very dated fireplace,
0:03:18 > 0:03:20but actually quite pleasant,
0:03:20 > 0:03:23it's an open fire, which is always nice to have.
0:03:23 > 0:03:25But then, what on earth is going on here?
0:03:25 > 0:03:32You've got this internal divide which is basically made from French doors!
0:03:32 > 0:03:37It actually separates that room out from this corridor area here.
0:03:37 > 0:03:39You go that way to a loo and bedrooms
0:03:39 > 0:03:43and this way through to the kitchen.
0:03:43 > 0:03:44Very odd indeed.
0:03:44 > 0:03:47The kitchen itself is a really nice size,
0:03:47 > 0:03:50loads of space for having a kitchen table in there
0:03:50 > 0:03:53so it becomes a living space, as well.
0:03:53 > 0:03:56Obviously, you need to replace the unit.
0:03:56 > 0:03:59But you've got to go that way to the dining room, excellent.
0:03:59 > 0:04:03So far, it's all seen better days.
0:04:03 > 0:04:06But a pleasant surprise along the corridor...
0:04:07 > 0:04:09..is the bathroom,
0:04:09 > 0:04:13and a bedroom, which is not quite as bonny a lass.
0:04:13 > 0:04:16Through to the bedroom.
0:04:16 > 0:04:19It's interesting because it was described in the auction catalogue
0:04:19 > 0:04:23as being a two-bedroom property, so I guess they're classing that dining room,
0:04:23 > 0:04:25or what I call the dining room, as the second bedroom,
0:04:25 > 0:04:29and you could theoretically have that as a second bedroom.
0:04:29 > 0:04:32Or you'll have it as a one-bedroom place and this is your bedroom.
0:04:32 > 0:04:34Nice size, got some built in cupboards,
0:04:34 > 0:04:35and real nice extra feature,
0:04:35 > 0:04:39another one of those lovely, old period fireplaces.
0:04:39 > 0:04:43# I will survive Hey, hey... #
0:04:43 > 0:04:47At least, I hope it will survive because despite its unusual layout,
0:04:47 > 0:04:50I quite like this quirky, little bungalow.
0:04:50 > 0:04:55But what about that roof, which was built to survive a World War I bomb blast?
0:04:57 > 0:05:01Having heard there was a bomb-proof roof, I couldn't resist having a look.
0:05:01 > 0:05:03Sure enough, there are steel reinforcements
0:05:03 > 0:05:07and concrete slabs on the roof.
0:05:07 > 0:05:09But as a general rule, it is always worth checking
0:05:09 > 0:05:12into the roof space of a house when you're looking round it.
0:05:12 > 0:05:16Some people carry a set of step ladders for that purpose.
0:05:20 > 0:05:25But will a local estate agent be blown away by this bomb-proof bungalow,
0:05:25 > 0:05:29which went to auction with a guide price of £54,950.
0:05:31 > 0:05:32The house appears
0:05:32 > 0:05:36to be of solid construction, fairly well built, quite tough,
0:05:36 > 0:05:40and there are some original features which are attractive to some people.
0:05:40 > 0:05:43But there's still work to do here.
0:05:43 > 0:05:48Could it achieve an earth-shattering rental income?
0:05:49 > 0:05:54I think the rent probably would be around £450 a calendar month.
0:05:55 > 0:05:57No great shakes there
0:05:57 > 0:06:00but could it make an impression on the re-sell market?
0:06:00 > 0:06:04If it was to be put into good order we could probably market
0:06:04 > 0:06:08the property somewhere like £95-£99,000.
0:06:09 > 0:06:14Bungalows do tend to hold their value well and they don't make so many of them any more,
0:06:14 > 0:06:17so they are perennially popular.
0:06:17 > 0:06:19Despite the layout inside,
0:06:19 > 0:06:21I still think this one's a good one to go for.
0:06:21 > 0:06:25So, who fancied this place? Let's find out when it went Under The Hammer.
0:06:27 > 0:06:32Semi-detached bungalow, corner site, well established residential area.
0:06:32 > 0:06:36We've got this in with a price guide of £54,950 plus. Can I ask for 55?
0:06:37 > 0:06:4153? Someone want to start me at 50?
0:06:42 > 0:06:44- Nobody?- 45.
0:06:44 > 0:06:4645 bid left-hand side.
0:06:47 > 0:06:4947 right in the centre. 49
0:06:49 > 0:06:5251. 51 bid. 53.
0:06:52 > 0:06:57It's in the centre at £51,000. 52.
0:06:57 > 0:07:01No. It's in the centre at £51,000. Anybody else? I'm in at £51,000.
0:07:01 > 0:07:0452 anyone?
0:07:04 > 0:07:0751½ gentleman standing in the far corner.
0:07:07 > 0:07:10I'll offer half to you as well. 52. 52 bid.
0:07:10 > 0:07:1452½. 53. 53½.
0:07:14 > 0:07:1754. 54½.
0:07:17 > 0:07:1955.
0:07:19 > 0:07:24No. Gentleman in the back row at £54,500. I'll take 55.
0:07:24 > 0:07:2655 bid. 55½.
0:07:29 > 0:07:33Sorry? £55,750. 56?
0:07:35 > 0:07:37What's 250?
0:07:37 > 0:07:4056 bid gone. 56 bid.
0:07:40 > 0:07:42£56,250?
0:07:42 > 0:07:45No?
0:07:45 > 0:07:49I can't quarter it again. £56,250. No?
0:07:49 > 0:07:52I'm in the centre at £56,000.
0:07:52 > 0:07:54Anything further on 56?
0:07:56 > 0:08:01No? £56,250 is back in.
0:08:01 > 0:08:0356½? No?
0:08:03 > 0:08:05I'm at £56,250.
0:08:05 > 0:08:10You don't want to try again? Anybody else? I'm at £56,250.
0:08:12 > 0:08:16It's just below at £56,250.
0:08:16 > 0:08:19It's close, but unfortunately just below.
0:08:19 > 0:08:23So, the lot failed to reach its reserve at the auction,
0:08:23 > 0:08:26but the former RAF bungalow didn't crash and burn there.
0:08:26 > 0:08:30It was snapped up afterwards for £59,000
0:08:30 > 0:08:34by local lass Sandra and her husband, Barry.
0:08:40 > 0:08:44Barry drives heavy goods vehicles and Sandra works in accounts.
0:08:44 > 0:08:48This was their very first time at auction.
0:08:48 > 0:08:52- Sandra, Barry, good to meet you both.- Hiya.- Congratulations.
0:08:52 > 0:08:55Sandra, tell me, why did you want to buy this house?
0:08:55 > 0:08:59We'd seen it, but we thought it would go for a lot more than it did at the auction,
0:08:59 > 0:09:01so we just went to the auction by chance.
0:09:01 > 0:09:06But we like the area, it's very quiet and it's a lovely bungalow,
0:09:06 > 0:09:08just the right size, really, to live in it.
0:09:11 > 0:09:14But this isn't for Barry and Sandra to live in, no, no, no.
0:09:14 > 0:09:18Having recently done up one property, they see the bungalow as a buy-to-let investment.
0:09:18 > 0:09:22'They plan to go on and build up something of a portfolio.'
0:09:24 > 0:09:28Tell me about you two, how long have you been together for?
0:09:28 > 0:09:30- 23 years.- 23, yeah.
0:09:30 > 0:09:32How did you meet?
0:09:32 > 0:09:36- Barry was a doorman.- I was a doorman in Newcastle.- A doorman?
0:09:36 > 0:09:40- In a nightclub?- Yeah. She was giving us loads of lip.
0:09:40 > 0:09:42I was on a girls' night out, so...
0:09:42 > 0:09:44And she was giving you lots of lip?
0:09:44 > 0:09:48- Loads of it, plenty.- Can you remember what you said to him?
0:09:48 > 0:09:52- You don't want to know.- He said some rotten things to me but I eventually
0:09:52 > 0:09:55told him that he was good looking, so that sealed the deal.
0:09:56 > 0:09:59Then she took her sunglasses off and jumped backwards.
0:09:59 > 0:10:01LAUGHTER
0:10:01 > 0:10:05# That's really saying something
0:10:05 > 0:10:08# Bop-bop, shoo-be-do-wah
0:10:08 > 0:10:12# Bop-bop, shoo-be-do-wah... #
0:10:12 > 0:10:1523 years later and Sandra and Barry are starting to think about
0:10:15 > 0:10:19making their hard-earned cash work even harder for them.
0:10:19 > 0:10:23So, they've sashayed their way on to the buy-to-let market.
0:10:24 > 0:10:26What are the plans for the place?
0:10:26 > 0:10:30Get it sorted, it's basically cosmetic
0:10:30 > 0:10:33and I think it's let straight away, anyway.
0:10:33 > 0:10:37Somebody come to see it the other day and loved it.
0:10:37 > 0:10:39There's a kitchen to go in, bits and pieces,
0:10:39 > 0:10:42and as far as I'm concerned, it's gone.
0:10:42 > 0:10:44- You've already got someone lined up to rent it?- Yeah.
0:10:44 > 0:10:46That's got to spur you on a bit, hasn't it?
0:10:46 > 0:10:48Yeah, it's nice...
0:10:48 > 0:10:51What are you going to do to the place?
0:10:51 > 0:10:54New kitchen, full redec,
0:10:54 > 0:10:58quite a bit of plastering cos the walls are poor.
0:10:58 > 0:11:02We were going to take these out but the tenant moving in
0:11:02 > 0:11:06wanted them left in, so...we'll just leave them.
0:11:06 > 0:11:10It is a quirky layout, isn't it?
0:11:10 > 0:11:15With these internal patio doors. Are you going to address that or not?
0:11:15 > 0:11:20I don't think there's any need. Basically, if I move in, yes,
0:11:20 > 0:11:23but not at the minute, no.
0:11:23 > 0:11:26I think it's just to keep the warmth in for the winter,
0:11:26 > 0:11:31because the glass is so cold, and it makes a passageway.
0:11:31 > 0:11:33But initially if we were living in it then we would
0:11:33 > 0:11:37take this wall out and make it more spacious for the living room.
0:11:37 > 0:11:41- But you're not going to bother doing that?- Not at the moment, no.
0:11:42 > 0:11:45Barry and Sandra are super organised and plan to get the work done
0:11:45 > 0:11:51in just four weeks because their tenant is chomping at the bit to move in.
0:11:51 > 0:11:53Their team is ready to start straight away
0:11:53 > 0:11:58and they have a modest budget of £5-10,000 to make the house comfortable.
0:11:58 > 0:12:01- What next for you two, then? - Just move onwards, I think.
0:12:01 > 0:12:06Once this is done, find another one, and crack on.
0:12:06 > 0:12:10Congratulations, lovely to meet you both, good luck with it and look forward to seeing how you get on.
0:12:10 > 0:12:12- Thank you.- Cheers.
0:12:12 > 0:12:17Things really have turned out pretty well for Sandra and Barry.
0:12:17 > 0:12:21Somebody already lined up to rent the place out.
0:12:21 > 0:12:25Of course, that does put the pressure on getting those renovations done in time.
0:12:25 > 0:12:28How will they get on? You can find out later in the show.
0:12:34 > 0:12:39SW6 is one of the prime postcodes in London.
0:12:40 > 0:12:44Two premiership football clubs, period properties
0:12:44 > 0:12:48and pucker penthouses. It would seem to have it all.
0:12:48 > 0:12:51But if I told you that you could still pick up a bargain in SW6,
0:12:51 > 0:12:54would you believe me?
0:12:54 > 0:12:56Well, welcome to Sands End.
0:12:56 > 0:13:00Just around the corner from those impressive penthouse apartments
0:13:00 > 0:13:03is the property I'm here to see.
0:13:03 > 0:13:08It's a more traditional street, with lines of Victorian terraces,
0:13:08 > 0:13:12a fraction of the height of the new builds and a fraction of the price.
0:13:12 > 0:13:17So, while a one-bed in a modern block goes for around £600,000,
0:13:17 > 0:13:23I am here to see a one-bed which had a guide price of £245,000.
0:13:23 > 0:13:26Between you and me, I know which one I'd prefer.
0:13:26 > 0:13:29# You're just too good to be true
0:13:29 > 0:13:33# Can't take my eyes off of you... #
0:13:33 > 0:13:38Did you know Frankie Valli was a Fulham fan? No, me neither.
0:13:38 > 0:13:39But that's by the by.
0:13:39 > 0:13:41We're here to look at this top floor,
0:13:41 > 0:13:44three-roomed flat in a really lovely terrace.
0:13:44 > 0:13:47The road outside does get quite busy but fingers crossed
0:13:47 > 0:13:50there are enough plus points inside to make up for that.
0:13:50 > 0:13:54# I love you, baby, and if it's quite all right
0:13:54 > 0:13:57# I need you baby... #
0:13:57 > 0:14:02I really do like these split-level flats. You get the feeling of space.
0:14:02 > 0:14:05You've got lots of rooms up there,
0:14:05 > 0:14:07loads of light coming in that skylight,
0:14:07 > 0:14:10so a very positive start for me.
0:14:10 > 0:14:12The bathroom just off the corridor... Oh!
0:14:12 > 0:14:15And a bit of cheeky space to play with in that cupboard.
0:14:15 > 0:14:18I'd like to knock all this through,
0:14:18 > 0:14:21you could really open up that bathroom area. But my!
0:14:21 > 0:14:25Now this is what you call a big kitchen! And we're in London, so imagine!
0:14:25 > 0:14:29Look at all this space, it's incredible.
0:14:29 > 0:14:32You could change these units, they're very dated.
0:14:32 > 0:14:36But I like the way you could have your breakfast bar here.
0:14:36 > 0:14:40Sit down and eat, bit of a negative though, big beautiful window,
0:14:40 > 0:14:43but the other side of that is a busy main road,
0:14:43 > 0:14:47lots of juggernauts haring past at all hours of the night and the day.
0:14:47 > 0:14:50But behind that building is the river.
0:14:50 > 0:14:53You've got your pluses and minuses.
0:14:53 > 0:14:58By London standards, this is a great kitchen, so a really good start.
0:14:59 > 0:15:03Beyond the massive kitchen, this flat gets better.
0:15:03 > 0:15:08Upstairs is a really good sized double bedroom, a large sitting room
0:15:08 > 0:15:12with a lovely bay window looking out onto the quieter side street.
0:15:12 > 0:15:15Beside that, a single/box room.
0:15:15 > 0:15:19So, what is this flat? A one-bed?
0:15:19 > 0:15:23A one and a half-bed? Two-bed? Or could it be even more?
0:15:24 > 0:15:29This is a big flat. Really, too big as a one-bed.
0:15:29 > 0:15:33But is it big enough to get a proper second bedroom in there?
0:15:33 > 0:15:35I think that would be a little bit tight.
0:15:35 > 0:15:38The best way to convert it into a two-bedder
0:15:38 > 0:15:42and make some decent cash is to do a loft conversion,
0:15:42 > 0:15:44as plenty of other people have done in this area.
0:15:44 > 0:15:49And there seem to be a number of ways in which you can lay these conversions out.
0:15:49 > 0:15:51Some put a bedroom and an ensuite up there,
0:15:51 > 0:15:57some, a couple of bedrooms, and I've even seen one or two laid out
0:15:57 > 0:16:01with a nice big kitchen-diner in the loft. Interesting.
0:16:01 > 0:16:04But before you get too excited about layouts,
0:16:04 > 0:16:06you have to buy the loft space first.
0:16:06 > 0:16:08Yes, buy it!
0:16:08 > 0:16:12Because although you're on the top floor, the vendors still own the freehold
0:16:12 > 0:16:16and with that, the roof space itself,
0:16:16 > 0:16:19and that could cost you big time.
0:16:22 > 0:16:27I know of a property where it cost the owners £30,000 to buy the loft space.
0:16:27 > 0:16:31But if the purchaser can buy the loft space from the freeholder
0:16:31 > 0:16:34it would transform this flat and life it into a whole new price bracket.
0:16:38 > 0:16:40We asked along a local estate agent
0:16:40 > 0:16:42to see what he makes of the property.
0:16:42 > 0:16:44First, what about the area, Sands End?
0:16:46 > 0:16:49I think the area's a very safe bet. It's in Zone 2,
0:16:49 > 0:16:51it's an excellent part of London,
0:16:51 > 0:16:53I think it's probably one of the rare,
0:16:53 > 0:16:56last places left for serious capital growth.
0:16:57 > 0:16:59That's what I like to hear.
0:16:59 > 0:17:03What about the flat with its guide price of £245,000?
0:17:05 > 0:17:09Obviously, it needs a little bit of work, it's good proportions,
0:17:09 > 0:17:12it's good light, it's well located, fantastic development property.
0:17:15 > 0:17:18What might be the best way forward, here?
0:17:18 > 0:17:21I think the maximum potential would be to extend into the loft.
0:17:21 > 0:17:24The current market would dictate that you aim for a very opulent two-bedroom.
0:17:24 > 0:17:27It is possible to make three bedrooms out of these
0:17:27 > 0:17:30but we've achieved phenomenal prices in the two-bedroom market
0:17:30 > 0:17:33because the buyers at present are very affluent.
0:17:33 > 0:17:36They have a high net worth and therefore they are wanting what they want,
0:17:36 > 0:17:38and you should appeal to that market.
0:17:41 > 0:17:44What could it sell for as a swish two-bed flat?
0:17:44 > 0:17:47If the right money was spent on the property,
0:17:47 > 0:17:50I have evidence to support a price of £600,000.
0:17:52 > 0:17:55And rental income?
0:17:55 > 0:18:00As a two-bedroom property, I would look to achieve £2,150 per calendar month.
0:18:01 > 0:18:04This property is a bit of a double whammy.
0:18:04 > 0:18:08A flat with scope to extend in an area that's increasing
0:18:08 > 0:18:12in value and desirability. Of course it's not all simple.
0:18:12 > 0:18:15You have to buy that loft space first.
0:18:15 > 0:18:17But I still reckon at the right price,
0:18:17 > 0:18:20this was a good one to go for at the auction.
0:18:22 > 0:18:26Shall I kick off on this? Er...
0:18:26 > 0:18:28250?
0:18:28 > 0:18:31250. 255.
0:18:33 > 0:18:35260. 265.
0:18:35 > 0:18:38270.
0:18:38 > 0:18:40275.
0:18:40 > 0:18:42280.
0:18:42 > 0:18:45285. 290.
0:18:45 > 0:18:47295.
0:18:48 > 0:18:51300.
0:18:51 > 0:18:53305.
0:18:53 > 0:18:55310. 315.
0:18:55 > 0:19:00Or, 311. 311? 311 anywhere?
0:19:00 > 0:19:02311. 312.
0:19:02 > 0:19:04313.
0:19:05 > 0:19:10If not, 312, first time, second time 313...
0:19:10 > 0:19:12314.
0:19:12 > 0:19:15315, new spot. 316.
0:19:15 > 0:19:18317. 318.
0:19:19 > 0:19:20319.
0:19:22 > 0:19:24318 first time, second time,
0:19:24 > 0:19:26third and last time.
0:19:26 > 0:19:28319. Another spot.
0:19:28 > 0:19:33320. 321, madam.
0:19:33 > 0:19:35322.
0:19:39 > 0:19:41Fulham, you can't go wrong in Fulham.
0:19:41 > 0:19:42323.
0:19:43 > 0:19:47323. 322.
0:19:47 > 0:19:50First time, second time,
0:19:50 > 0:19:52third and last time, if you're done.
0:19:54 > 0:19:57Sold 322.
0:19:57 > 0:20:02That successful bid of £322,000 came from Jamie, a local estate agent,
0:20:02 > 0:20:06who attended the auction with his business partner.
0:20:06 > 0:20:08Now, Jamie has appeared on this programme before,
0:20:08 > 0:20:10wearing his estate agent's hat,
0:20:10 > 0:20:14but you may recognise him from somewhere else.
0:20:14 > 0:20:17# Strange
0:20:17 > 0:20:19# I've seen that face before... #
0:20:21 > 0:20:24- Jamie, it's lovely to meet you. - Very nice to meet you as well.
0:20:24 > 0:20:27Now, I know I know that face and I know where from.
0:20:27 > 0:20:30- Absolutely, The Apprentice. - Tell me all about it.
0:20:30 > 0:20:35Amazing experience, really, the whole thing, very intense.
0:20:35 > 0:20:39Very, very difficult. People now come up to me, "Was it that difficult?"
0:20:39 > 0:20:43Absolutely, but times it by ten. Difficult but brilliant all the same.
0:20:44 > 0:20:48You've got back to work, you're back into property, you've been a busy boy, recently.
0:20:48 > 0:20:50Yeah, absolutely.
0:20:50 > 0:20:54My whole life and career has been in property, sales, lettings,
0:20:54 > 0:20:57which I'm still doing, got my own agency,
0:20:57 > 0:21:00but also now doing a bit of property development, as well.
0:21:00 > 0:21:02On the front end and back end.
0:21:02 > 0:21:05How many years have you been involved in property?
0:21:05 > 0:21:09I started property when I was 15 years old as a Saturday boy.
0:21:09 > 0:21:11- Did you?- Yea, yeah.
0:21:11 > 0:21:14So I can now say, 16 years.
0:21:14 > 0:21:17I don't look old enough to have been in property for 16 years!
0:21:17 > 0:21:20- Are you that old?- Yeah, 31.
0:21:20 > 0:21:23And anything else that's taken a lot of your time, recently?
0:21:23 > 0:21:28Yeah, my beautiful wife gave birth to our baby son ten weeks ago.
0:21:28 > 0:21:33New business, new family, full on. Very, very busy at the moment.
0:21:35 > 0:21:39Busy as he is, Jamie's not shirking from making a difference to this flat.
0:21:39 > 0:21:42Oh, no, he's going large on this one.
0:21:45 > 0:21:48It's pretty much a first floor flat, slightly split-levelled.
0:21:48 > 0:21:51Two bedrooms, more like one and a half bedrooms,
0:21:51 > 0:21:54but where the real value is going to be is adding square footage.
0:21:54 > 0:21:56Going into the loft.
0:21:56 > 0:22:01We've put in some big plans to go into the loft and we're going to get it.
0:22:01 > 0:22:05- You're so confident. - We're going to get it.- Too confident?
0:22:05 > 0:22:08What if you don't get it? Have you got a plan B to fall back on?
0:22:08 > 0:22:11There's always plan B, plan A is going to be going into the loft,
0:22:11 > 0:22:16two rooms upstairs, about 1,500-1,600 square foot. Big plans,
0:22:16 > 0:22:18probably doubling its size.
0:22:18 > 0:22:20That would be plan A, brilliant.
0:22:20 > 0:22:23Plan B, only one room upstairs.
0:22:23 > 0:22:28If these plans are rejected then we should be able to get one room upstairs.
0:22:28 > 0:22:33Plan C would be to renovate and sell,
0:22:33 > 0:22:37and plan D would be renovate and rent.
0:22:39 > 0:22:41Jamie's plan A is pretty ambitious.
0:22:41 > 0:22:43Two big new bedrooms in the loft space,
0:22:43 > 0:22:47the existing kitchen becomes a bedroom. The current sitting room
0:22:47 > 0:22:52becomes the kitchen/living room, and the box room stays as it is.
0:22:52 > 0:22:56Sounds great, but I think we might have overlooked something rather important.
0:22:58 > 0:23:01You say you have the loft but you don't actually own the loft.
0:23:01 > 0:23:04- I don't own the loft.- Tell me more, because that frightens me
0:23:04 > 0:23:08and I know it frightens a world of people because you don't know
0:23:08 > 0:23:12- how much you're going to have to pay for the loft space.- Absolutely.
0:23:12 > 0:23:16Listen, when you buy in auction you have small time to due diligence,
0:23:16 > 0:23:21but then you buy it on the proviso that you can buy the loft area and you can extend.
0:23:21 > 0:23:26We have experience in buying the loft space in the past
0:23:26 > 0:23:28so we know the process and we feel comfortable doing it.
0:23:28 > 0:23:31How much do you reckon you'll have to fork out for that loft space?
0:23:31 > 0:23:34- I reckon £12,000.- I'm going to tell you a little story.
0:23:34 > 0:23:39I know somebody that ended up forking out £30,000 for their loft space.
0:23:39 > 0:23:42Negotiate. Everyone knows I can negotiate.
0:23:42 > 0:23:44Negotiate, negotiate, negotiate.
0:23:47 > 0:23:51This wannabe apprentice sure if fired up over the task ahead.
0:23:51 > 0:23:55Jamie plans to spend £50,000 on the building work,
0:23:55 > 0:23:59£20-25,000 on fitting the flat out,
0:23:59 > 0:24:03plus his estimated £12,00 to buy the loft space.
0:24:03 > 0:24:07So, with his total budget around the £87,000 mark,
0:24:07 > 0:24:10Jamie's not holding back. There's planning permission still to get,
0:24:10 > 0:24:14but he will give his builders four to five months to finish the work.
0:24:14 > 0:24:18- Jamie, it's been so lovely meeting you.- Very nice meeting you, as well.
0:24:18 > 0:24:20I'm excited about this project
0:24:20 > 0:24:22- and are you glad how things have turned out?- Love it.- Love it.
0:24:22 > 0:24:24- Well done, brilliant.- Thank you.
0:24:26 > 0:24:31New business, new family, new developments. Oh, full on!
0:24:31 > 0:24:33But I think that's how Jamie likes it.
0:24:33 > 0:24:37And he's being sensible with plans A, B, C and D,
0:24:37 > 0:24:41in case the risk doesn't return the necessary rewards.
0:24:41 > 0:24:43Find out if this former Apprentice
0:24:43 > 0:24:47wins big on this Sands End flat later on in the show.
0:24:48 > 0:24:50Coming up in Devon,
0:24:50 > 0:24:53this pet shop with flat above looks a solid investment.
0:24:53 > 0:24:57That's over 8% yield? Nothing too slimy about that.
0:24:59 > 0:25:02It seems all's well with Jamie's renovation
0:25:02 > 0:25:04in this split-level flat in South West London.
0:25:04 > 0:25:07We buy well, we renovate well and we sell well.
0:25:09 > 0:25:11But first, in Northumberland
0:25:11 > 0:25:14Sandra and Barry are making things neat and tidy.
0:25:14 > 0:25:17There's still a few snagging bits to do and then it's finished.
0:25:21 > 0:25:24'Back now to Cramlington in Northumberland
0:25:24 > 0:25:28'to check on progress at this bomb-proof, semi-detached bungalow,
0:25:28 > 0:25:33'which Barry and Sandra bought at auction for £59,000.
0:25:33 > 0:25:36'HGV driver and former doorman, Barry,
0:25:36 > 0:25:38'was quite clear about their plans for the property.'
0:25:40 > 0:25:42It's basically cosmetic.
0:25:42 > 0:25:45Somebody come to see it the other day and loved it,
0:25:45 > 0:25:48as far as I'm concerned it's gone.
0:25:48 > 0:25:51- You've already got somebody lined up to rent it?- Yeah.
0:25:51 > 0:25:54- That's got to spur you on a bit, hasn't it?- Yeah.
0:25:54 > 0:25:58And spur them on it did, with a budget of between £5-£10,000
0:25:58 > 0:26:01and a four week timescale, it was all systems go.
0:26:03 > 0:26:06Just four weeks and two days after our first visit,
0:26:06 > 0:26:10we're back to see if Sandra and Barry have put their heart and soul
0:26:10 > 0:26:12into this northern property.
0:26:12 > 0:26:15# Like a sound you hear that lingers in your ear
0:26:15 > 0:26:20# But you can't forget from sundown to sunset, now, now
0:26:21 > 0:26:26# California soul
0:26:26 > 0:26:32# California soul. #
0:26:34 > 0:26:38Bearing in mind it's a mere four weeks since our first visit,
0:26:38 > 0:26:42Barry and Sandra have made a pretty good job of this one.
0:26:44 > 0:26:48Basically, we've got into place ceilings, walls,
0:26:48 > 0:26:51we had a good decorator and he's put stuff right.
0:26:51 > 0:26:54It was in a bit of a state when we first got it,
0:26:54 > 0:26:56but it's getting there.
0:26:56 > 0:27:00There's a few snagging bits to do and then it's finished.
0:27:01 > 0:27:04The biggest changes are in the former dining room,
0:27:04 > 0:27:07which is now more clearly a bedroom.
0:27:07 > 0:27:10We took the door out between the kitchen and the dining room
0:27:10 > 0:27:13to make the dining room a bedroom.
0:27:13 > 0:27:15Barry took the gas fire out and the fireplace.
0:27:15 > 0:27:19We had to take it right back to the brick and that was replastered.
0:27:22 > 0:27:25And the kitchen itself is transformed.
0:27:25 > 0:27:29We took the whole kitchen out, replastered the ceiling,
0:27:29 > 0:27:35took the door out there, put all new units in, all new electrics,
0:27:35 > 0:27:38made enough room so you can have a kitchen/diner,
0:27:38 > 0:27:40as opposed to having a separate dining room.
0:27:43 > 0:27:46As well as a new fence all the way around the property,
0:27:46 > 0:27:49former doorman Barry has been busy outside the back door.
0:27:53 > 0:27:57Basically, out here there was a car port where I'm standing,
0:27:57 > 0:28:02which was flexing in the wind, which was pulling the wall down.
0:28:02 > 0:28:05So, we took that down, got it all strengthened.
0:28:05 > 0:28:09All the gutters taken off, the soffits painted up cos they were OK.
0:28:09 > 0:28:13Painted the bottom end and flagstoned
0:28:13 > 0:28:17this little bit to tidy it up.
0:28:17 > 0:28:20And that's what it is today.
0:28:21 > 0:28:25Barry and Sandra felt they were let down by their plasterer,
0:28:25 > 0:28:27and although their painter saved the day for them,
0:28:27 > 0:28:30they went slightly over their four week timescale
0:28:30 > 0:28:33with just a bit of snagging still to sort out.
0:28:33 > 0:28:39The couple did a lot of the work themselves, so what has that done for their £5-10,000 budget?
0:28:40 > 0:28:43With solicitor's fees it's gone to £6,600.
0:28:44 > 0:28:46That's pretty impressive.
0:28:46 > 0:28:50Sandra and Barry have spend a total of £65,600 on the property,
0:28:50 > 0:28:53including their purchase price of £59,000.
0:28:55 > 0:28:58We asked along two local estate agents
0:28:58 > 0:29:00to hear their thoughts on the renovation.
0:29:00 > 0:29:03The property is done to a really good high standard.
0:29:03 > 0:29:06They've kept some original features
0:29:06 > 0:29:09with the cove and the lodge skirting, and the two fireplaces.
0:29:09 > 0:29:12They've done a reasonable job,
0:29:12 > 0:29:16compared to the original state it's much improved.
0:29:16 > 0:29:20While Barry and Sandra have already let the bungalow,
0:29:20 > 0:29:23what do the experts think it might fetch on the resale market?
0:29:23 > 0:29:26I think if we were putting this on the market at the moment
0:29:26 > 0:29:29we'd probably ask for something between £80,000 and £85,000,
0:29:29 > 0:29:33and hopefully achieve something at tops £70-£80,000.
0:29:33 > 0:29:37I would value this property at £85,000.
0:29:37 > 0:29:39Well, I'm pleased at that cos I would have thought
0:29:39 > 0:29:43- it would be around £70-75,000. - Especially in this climate.
0:29:43 > 0:29:46- I'm pleased with that. Exceptionally pleased with it.- Yes, very good.
0:29:48 > 0:29:50In fact, it's going up for sale.
0:29:53 > 0:29:57I think your tenant might have something to say about that, Barry.
0:29:57 > 0:29:59But if they did sell at £80-£85,000,
0:29:59 > 0:30:04Barry and Sandra would be looking at a pre-tax profit of between
0:30:04 > 0:30:09£14,400 and £19,400 which is pretty good for a month's work.
0:30:09 > 0:30:12What do the experts think the bungalow could fetch on the rental market?
0:30:15 > 0:30:21In this current market the rental would be £450 per calendar month.
0:30:21 > 0:30:24I think with this one on the market at the moment something
0:30:24 > 0:30:26approaching £500 a calendar month.
0:30:27 > 0:30:30It's about where we were, we're getting £495 for it
0:30:30 > 0:30:31so it's about right.
0:30:36 > 0:30:40Renting the bungalow out for £495 per month would give
0:30:40 > 0:30:44Sandra and Barry a well deserved yield of just over 9%,
0:30:44 > 0:30:45so what's next for this pair?
0:30:47 > 0:30:48On to the next one.
0:30:48 > 0:30:49Move on to the next one now
0:30:49 > 0:30:53and see what comes up onto the auctions, auction sites.
0:30:54 > 0:30:57I've got estate agents ringing us all the time with properties,
0:30:57 > 0:31:00it's choosing the right one, you know.
0:31:00 > 0:31:01We'll get there.
0:31:07 > 0:31:10I'm in Torquay in Devon, famed for its sandy beaches,
0:31:10 > 0:31:14mild climate and Torbay palms.
0:31:14 > 0:31:19The property I'm here to see is a couple of miles inland.
0:31:19 > 0:31:24Well up for auction with a guide price of £120-130,000
0:31:24 > 0:31:26was a shop with a flat above it.
0:31:27 > 0:31:29Now, the shop's currently tenanted
0:31:29 > 0:31:33but we've got permission to have a look round and if you don't like things
0:31:33 > 0:31:37that creep, crawl, slime and slither...
0:31:37 > 0:31:39look away.
0:31:53 > 0:31:57Well, as you can see this place is let out as a pet shop
0:31:57 > 0:32:00selling a variety of reptiles, snakes and fish
0:32:00 > 0:32:03and a fantastic collection it is, too.
0:32:03 > 0:32:05But what's really interesting is the rent.
0:32:05 > 0:32:10£11,000 a year and there's a ten year lease in place.
0:32:10 > 0:32:13So if you got this for around about the guide price, that's over
0:32:13 > 0:32:16an 8% yield, nothing too slimy about that.
0:32:20 > 0:32:24So, with a tenant and lease in situ you don't have to do anything
0:32:24 > 0:32:25with this part of the building.
0:32:25 > 0:32:29But there's more to this property than just these business premises.
0:32:31 > 0:32:35You also get a three-bedroom flat and it's up these stairs round the back.
0:32:37 > 0:32:40Well, judging from the outside, we've got a few problems going on.
0:32:40 > 0:32:44That is really ancient guttering, it's obviously been leaking,
0:32:44 > 0:32:48all the fascias and soffits have gone, that's not good,
0:32:48 > 0:32:50let's hope it's better inside.
0:32:52 > 0:32:55Well, first thing you have to get is a new door,
0:32:55 > 0:32:57that's not very good, is it?
0:32:57 > 0:33:02And straight away, look, dreadful signs of damp,
0:33:02 > 0:33:05probably caused by that gutter.
0:33:05 > 0:33:08Just a simple bit of plastic guttering in good condition
0:33:08 > 0:33:10would have saved all that.
0:33:10 > 0:33:13But it looks like a half decent flat in terms of size.
0:33:13 > 0:33:15Through the front door a little corridor,
0:33:15 > 0:33:19off into your first bedroom here, and again look at that, not good at all.
0:33:19 > 0:33:22All along this front wall
0:33:22 > 0:33:26are really bad signs of damp.
0:33:26 > 0:33:29Still, not too big a problem to sort out. Let's carry on.
0:33:32 > 0:33:36Unfortunately there are signs of damp throughout this flat.
0:33:36 > 0:33:38No room escapes.
0:33:40 > 0:33:45The bathroom suite looks OK but the flooring and the tiles will definitely need changing.
0:33:47 > 0:33:50Across the corridor of this two-storey property that went
0:33:50 > 0:33:53to auction guided at £120-130,000,
0:33:53 > 0:33:56the large bedrooms are a decent size.
0:33:56 > 0:33:58But again, there are more signs of damp.
0:34:01 > 0:34:04Bedroom three, like the rest of the flat,
0:34:04 > 0:34:06will need a complete refurbishment.
0:34:06 > 0:34:09I like the kitchen, it's a fair size and really light.
0:34:09 > 0:34:14It could make a great room once the units have been replaced.
0:34:17 > 0:34:20Look at this, a really nice-sized lounge.
0:34:20 > 0:34:23I know the flat isn't in the best of conditions but there's
0:34:23 > 0:34:29a lot of space and it certainly feels like a lovely place to live.
0:34:29 > 0:34:31Lots of light through the windows, bit of noise from the road,
0:34:31 > 0:34:33perhaps, but all in all, I really like it,
0:34:33 > 0:34:38and don't forget, you've already got the income from the shop downstairs.
0:34:38 > 0:34:42Any money you get from rental here is just a bonus.
0:34:42 > 0:34:46But would it be easy to let out this flat?
0:34:46 > 0:34:48We invited a local estate agent to look around.
0:34:48 > 0:34:50So, what's the verdict here?
0:34:53 > 0:34:55The flat itself is actually quite spacious.
0:34:55 > 0:34:59There are obviously one or two issues that need to be put right.
0:34:59 > 0:35:03There are some major damp issues from the looks of things which need to be sorted out.
0:35:03 > 0:35:05The gutters need to be replaced.
0:35:05 > 0:35:10I certainly would recommend that the vendor not spend too much on refurbishment.
0:35:10 > 0:35:12The bathroom suite is actually not too bad
0:35:12 > 0:35:16so maybe some retiling and just a cheap kitchen.
0:35:17 > 0:35:21After refurbishment, how much rent could be earned here?
0:35:22 > 0:35:26Once renovated to a reasonable standard I'd probably expect
0:35:26 > 0:35:29to achieve between £450 and £475 per calendar month.
0:35:29 > 0:35:32And if you could separate the flat from the business,
0:35:32 > 0:35:35what sort of valuation could it fetch?
0:35:35 > 0:35:40I would recommend putting it onto the market at between £70-£75,000.
0:35:41 > 0:35:44Well the thing with this one is not to get too distracted
0:35:44 > 0:35:47by the amazing reptiles, just look at the numbers.
0:35:47 > 0:35:50You've got a long term tenant here paying you a good rent
0:35:50 > 0:35:52and the bonus of the flat upstairs.
0:35:52 > 0:35:54A great, solid investment. What do you think?
0:35:54 > 0:35:58Let's see what happened when it went under the hammer.
0:35:58 > 0:36:00165 is next.
0:36:01 > 0:36:04This lot came up towards the end of the day but there was still
0:36:04 > 0:36:08plenty of interest in the retail unit with a flat above.
0:36:08 > 0:36:10So, £100,000.
0:36:10 > 0:36:15One I've got, at 100. At one.
0:36:15 > 0:36:16102. 102?
0:36:16 > 0:36:19104. At 104. 104.
0:36:19 > 0:36:22106.
0:36:22 > 0:36:26108. 110. 112.
0:36:26 > 0:36:28112.
0:36:28 > 0:36:29114.
0:36:29 > 0:36:30116.
0:36:30 > 0:36:34118, 118, 118.
0:36:34 > 0:36:37At 118.
0:36:37 > 0:36:41Once. 120. 122. 122.
0:36:41 > 0:36:43124. 124.
0:36:43 > 0:36:47126. 126. At 126.
0:36:47 > 0:36:48128.
0:36:48 > 0:36:54130. Hello, right, that was obviously the key point.
0:36:54 > 0:36:57130 is the nice lady here who's been pushed up
0:36:57 > 0:36:59all the way by one chap, and now two more join in.
0:36:59 > 0:37:05But you're in at 130. At 130. On my left it is. Once.
0:37:05 > 0:37:08132. 132, 134.
0:37:08 > 0:37:11134, 135.
0:37:11 > 0:37:13Thank you front row. 135.
0:37:13 > 0:37:18136. Someone's listening.
0:37:18 > 0:37:21At 136. Here. At 136.
0:37:21 > 0:37:23At 136, the lady.
0:37:23 > 0:37:27On my left, first, second time. 136. It's going, make no mistake,
0:37:27 > 0:37:29the two components at 136.
0:37:30 > 0:37:32Madame, it's yours, well done.
0:37:32 > 0:37:38That final successful bid of £136,000 was made by Fran, who's based in Torquay.
0:37:40 > 0:37:45She's only recently relocated back to Devon from Wales and there's
0:37:45 > 0:37:50a good reason why she attended her first auction to buy this property.
0:37:50 > 0:37:55# Karma, karma, karma, karma, karma chameleon
0:37:55 > 0:38:01# You come and go, you come and go You come and go... #
0:38:01 > 0:38:03I met up with her in the flat to find out more.
0:38:05 > 0:38:10- Fran, good to meet you. - And you.- Congratulations.
0:38:10 > 0:38:13- That was an interesting auction purchase, isn't it?- Hmmm.
0:38:13 > 0:38:15Tell me why you wanted to buy the flat and the shop.
0:38:15 > 0:38:19Mainly the shop. This is where we buy all our reptile
0:38:19 > 0:38:24and snake food, cos I keep reptiles and snakes.
0:38:24 > 0:38:28Wow! So you knew about this shop beforehand, did you?
0:38:28 > 0:38:33I only live five minutes away so it's the ideal purchase, I thought.
0:38:33 > 0:38:37- So, you like the shop so much you decided to buy it?- That's the one.
0:38:37 > 0:38:39What sort of things do you keep?
0:38:39 > 0:38:43Royal pythons, bearded dragons, water dragons, chameleons.
0:38:43 > 0:38:46- I love chameleons, aren't they great?- Well, I've got five.
0:38:46 > 0:38:49Oh, have you? I love their eyes going all over the place.
0:38:49 > 0:38:54I've got five just waiting for a female to go with the other one then I can breed those.
0:38:54 > 0:38:56Wow. How big is your biggest snake?
0:38:56 > 0:39:00- Oh, the biggest one is our Burmese python.- Right. - He's only 18 months old.
0:39:00 > 0:39:04- He is going to end up between 18 and 20 feet long.- 18 and 20 feet?!- Yes.
0:39:04 > 0:39:07So what go you into snakes and reptiles?
0:39:07 > 0:39:10I've always liked them, and then I met up with somebody
0:39:10 > 0:39:14who actually was keeping them and my interest just sort of escalated.
0:39:15 > 0:39:19With such an interest in breeding reptiles, it's no wonder Fran
0:39:19 > 0:39:22was interested in making this her first investment property.
0:39:22 > 0:39:26It's a venture she hopes will benefit her two kids
0:39:26 > 0:39:30in the long term, but her primary focus seems to have been the shop.
0:39:30 > 0:39:32'She knows the current tenant,
0:39:32 > 0:39:35'Sue, who runs it, but of course there's more to this property.'
0:39:36 > 0:39:40So was the flat a significant part of the reason for buying it?
0:39:40 > 0:39:44- I'm not sure what I'm doing with this part, yet.- OK.
0:39:44 > 0:39:48Sue from the shop might be taking it over and extending the shop up here.
0:39:48 > 0:39:53- Oh.- If she doesn't I'm going to turn it into a really nice three-bed flat and then rent it out.
0:39:53 > 0:39:57The current lease is what's known as a repairing lease,
0:39:57 > 0:40:00meaning that it's the tenant who is responsible for the repair
0:40:00 > 0:40:02and maintenance of the building.
0:40:03 > 0:40:06Fran is the freeholder, but she's decided she'll share
0:40:06 > 0:40:09the initial renovation costs with the tenant,
0:40:09 > 0:40:14because it seems fairer when there's so much work to be done.
0:40:14 > 0:40:17Apart from damp and decor, if Sue does decide to extend the shop upstairs
0:40:17 > 0:40:22they'll build an internal staircase to connect the two floors.
0:40:22 > 0:40:24That's dependent on getting change of use
0:40:24 > 0:40:28and building regulations approval from the council, of course.
0:40:28 > 0:40:32So, any idea how much this is going to cost to do the restoration
0:40:32 > 0:40:33you need to do immediately?
0:40:33 > 0:40:37Probably what I'm going to be spending is going to be around the £5000 or £6000 mark.
0:40:37 > 0:40:41- Right, and how quickly are you going to get that sorted? - Within the next month.- Right.
0:40:41 > 0:40:46- And then the budget for any other work, it really depends on what happens?- Yeah.
0:40:47 > 0:40:50Personally, I'd opt to refurbish and let the flat
0:40:50 > 0:40:53but then I think Fran's love of all things reptilian
0:40:53 > 0:40:55is definitely the main driving force here.
0:40:57 > 0:41:00Although Sue is likely to be the tenant for the whole building,
0:41:00 > 0:41:04Fran's not bothered about changing the financial terms of the tenancy.
0:41:07 > 0:41:10# It's not about the money, money, money
0:41:10 > 0:41:12# We don't need your money, money, money
0:41:12 > 0:41:15# We just wanna make the world dance
0:41:15 > 0:41:18# Forget about the price tag... #
0:41:18 > 0:41:21So if you rented it you'd get a few hundred a month
0:41:21 > 0:41:23for the flat but are you willing to forego that?
0:41:25 > 0:41:29Yes. I'd rather forego that and have somebody in here I know that's not going to wreck it,
0:41:29 > 0:41:32and will look after it.
0:41:32 > 0:41:34I hope you get free reptile food for life!
0:41:34 > 0:41:36I expect so.
0:41:36 > 0:41:42- Well, congratulations, it's a surreal end to the story.- I know.
0:41:42 > 0:41:46- I know, amazing.- Lovely to meet you. - And you.- Good luck with it all.
0:41:46 > 0:41:48Thank you.
0:41:48 > 0:41:50What an amazing turn up for the books!
0:41:52 > 0:41:57Fran, a reptile lover and snake owner buys
0:41:57 > 0:41:59a reptile, snake and fish shop.
0:41:59 > 0:42:00Fantastic.
0:42:00 > 0:42:04When we return, will this place be an extension of the shop?
0:42:04 > 0:42:09Will there be snakes and things all over the place or will there be a person living in here?
0:42:09 > 0:42:11Well, you can find out later in the show.
0:42:14 > 0:42:18Well, after some work has been done those properties could be
0:42:18 > 0:42:20worth a lot more money.
0:42:20 > 0:42:23Have our buyers started, or have there been delays?
0:42:23 > 0:42:24Let's go back and find out.
0:42:33 > 0:42:38We've come full circle back to Sands End in Fulham, London, to check
0:42:38 > 0:42:41on progress at this first-floor, split-level flat.
0:42:41 > 0:42:46It was bought at auction for £322,000 by estate agent,
0:42:46 > 0:42:51and wannabe Apprentice Jamie and a business partner.
0:42:51 > 0:42:57With his 16 years in the property business, Jamie can certainly walk the walk and talk the talk.
0:42:57 > 0:43:00He was taking no chances when it came to plans for the flat.
0:43:02 > 0:43:05Plan A is going to into the loft, two rooms upstairs,
0:43:05 > 0:43:09big plans, probably doubling its size.
0:43:09 > 0:43:11Plan B, only one room upstairs.
0:43:11 > 0:43:17Plan C will be to just renovate and sell
0:43:17 > 0:43:21and Plan D would be renovate and rent.
0:43:22 > 0:43:26Sounds like he's covered all the bases there.
0:43:26 > 0:43:29Jamie had a total renovation budget of around £87,000,
0:43:29 > 0:43:34including an estimated £12,000 to buy the loft space from
0:43:34 > 0:43:37the freeholder and a timescale of four to five months to do the work.
0:43:39 > 0:43:41We're back seven months later to see
0:43:41 > 0:43:46if new dad Jamie has sweetened the blow of being fired by Lord Sugar.
0:43:49 > 0:43:54# Woah, oh, sweet child of mine
0:43:56 > 0:44:02# Woah, oh-oh Sweet child of mine... #
0:44:03 > 0:44:06The first thing to note is that Jamie hasn't gone
0:44:06 > 0:44:10up into the loft, but he has made some big changes here.
0:44:10 > 0:44:13The former kitchen has been divided up to create
0:44:13 > 0:44:17a double bedroom and where the dining area was is now the bathroom.
0:44:18 > 0:44:22The old bathroom has been opened up to create an airy, open-plan kitchen.
0:44:24 > 0:44:27Up the stairs and the original double bedroom is still there,
0:44:27 > 0:44:32but the sitting room and box bedroom have been knocked together to create a lovely bright space.
0:44:32 > 0:44:35Pretty sweet in fact.
0:44:37 > 0:44:40When we first bought this property there was a long corridor
0:44:40 > 0:44:42which was a complete waste of space in this flat,
0:44:42 > 0:44:45so we've got rid of the corridor, pushed the bathroom a bit further
0:44:45 > 0:44:47back into where the old kitchen was, so now
0:44:47 > 0:44:53what we have is a nice open-plan kitchen which doesn't eat into
0:44:53 > 0:44:56the main living space, so you can cook and still be involved
0:44:56 > 0:44:59with your guests but you've got your own space here.
0:44:59 > 0:45:03Inside the kitchen itself, it's all modern, it's all contemporary,
0:45:03 > 0:45:08exactly what people want around here, so anything from the soft-closing cabinets to gas cooking,
0:45:08 > 0:45:15people love gas cooking round here, and of course your dishwasher.
0:45:15 > 0:45:19I personally love this kitchen, it's really airy, it's really bright.
0:45:19 > 0:45:23Something we've found which we didn't know was the vaulted ceiling
0:45:23 > 0:45:28so actually now what we have is a really high, airy flat
0:45:28 > 0:45:32and everyone who walks in here, from the builders to our buyers,
0:45:32 > 0:45:36love this area. It's a nice welcome as soon as you come up from the stairs.
0:45:38 > 0:45:41What about plan A and plan B and going up into the loft?
0:45:44 > 0:45:47First of all we went for the big ask of two rooms upstairs.
0:45:47 > 0:45:50We knew that was a big ask and unfortunately that didn't go through,
0:45:50 > 0:45:53but that really was pushing the boat out.
0:45:53 > 0:45:55We got our usual planning permission of a bedroom
0:45:55 > 0:45:58and bathroom upstairs and if the new owner wants to do it,
0:45:58 > 0:46:01they can do it and they'll be able to add value to their property as well.
0:46:01 > 0:46:06So although they did eventually get permission for an amended plan
0:46:06 > 0:46:10to put one en-suite bedroom in the loft space, they decided
0:46:10 > 0:46:14to save themselves the time and cost of actually doing the work.
0:46:14 > 0:46:16Any future owner will know the permission is in place
0:46:16 > 0:46:19and it will be up to them to buy the loft from the freeholder
0:46:19 > 0:46:22and convert the attic themselves.
0:46:22 > 0:46:25But hold the presses, there's some exciting news.
0:46:25 > 0:46:29They've already sold the property to a cash buyer who's keen
0:46:29 > 0:46:31to move in as soon as possible.
0:46:35 > 0:46:40This project was no different to any others. We buy well, we renovate well and we sell well.
0:46:40 > 0:46:42We've done very well on this one.
0:46:43 > 0:46:45Well, well, well.
0:46:45 > 0:46:48Toing and froing with the planners over the loft conversion
0:46:48 > 0:46:51did take several months, but once they got started Jamie's team
0:46:51 > 0:46:54were in and out within ten weeks and because he hasn't gone up
0:46:54 > 0:47:00into the loft he's only spent £50,000 of his total pot of £87,000.
0:47:03 > 0:47:07So, Jamie has spent a total of £372,000 on the flat,
0:47:07 > 0:47:13including his purchase price of £322,000. He loves it, we love it.
0:47:13 > 0:47:15But what do two local estate agents make of it?
0:47:18 > 0:47:21My first impression of the property is the total change.
0:47:21 > 0:47:23The finish, the light, the style -
0:47:23 > 0:47:27everything is absolutely perfect. Great wood flooring, I love it.
0:47:27 > 0:47:29I think the way they've laid the space out,
0:47:29 > 0:47:33the floor plan is probably about as well as you can do it.
0:47:33 > 0:47:38It's a good balance, all in all, you have got two double bedrooms.
0:47:38 > 0:47:39You've got enough living space
0:47:39 > 0:47:43and the kitchen is a bit off the living room so a bit fiddly perhaps,
0:47:43 > 0:47:48but no big deal, I mean it works pretty well.
0:47:49 > 0:47:52So was it a good idea to go straight for resale?
0:47:52 > 0:47:55What kind of rental income might the flat achieve?
0:47:57 > 0:48:01If this property was on the rental market I could see it achieving £1,700 per calendar month.
0:48:01 > 0:48:07If you were renting you'd be looking for maybe £1,600-£1,800 a month.
0:48:08 > 0:48:12That would be a yield of between 5%-6%.
0:48:12 > 0:48:15Is that enough to tempt Jamie down the rental route?
0:48:15 > 0:48:20Absolutely not, it's not in our business model.
0:48:20 > 0:48:21Buy, renovate, sell.
0:48:23 > 0:48:25Fair enough, so what about those resale valuations?
0:48:25 > 0:48:28Bearing in mind the total investment here is £372,000.
0:48:33 > 0:48:38If this property was to come on to the market today I could see it fetching no less than £465,000.
0:48:38 > 0:48:40For resale I would expect it to achieve
0:48:40 > 0:48:46somewhere between £460,000 and £480,000.
0:48:48 > 0:48:51That would mean a pre-tax profit before fees
0:48:51 > 0:48:54and expenses of between £88,000 and £108,000.
0:48:54 > 0:48:58How does that tally with the price Jamie's purchaser paid?
0:49:00 > 0:49:04We sold for £465,000 so we knew it was a fair price,
0:49:04 > 0:49:08it wasn't a high price, it definitely wasn't a low price.
0:49:08 > 0:49:13And they've confirmed exactly what we're doing so yeah, 10/10.
0:49:16 > 0:49:18Surely even Lord Sugar would be happy with that?
0:49:18 > 0:49:19So, final words, Jamie.
0:49:21 > 0:49:23It's all about buying.
0:49:23 > 0:49:27You buy well and we sold at market price so perfect, I'm very happy.
0:49:31 > 0:49:34Back now to Torquay in Devon where, earlier in the programme, Fran,
0:49:34 > 0:49:39who lives locally, paid £136,000 for this three-bedroom flat
0:49:39 > 0:49:41plus the commercial property below.
0:49:43 > 0:49:48She breeds dogs, reptiles, fish and snakes and knew the shop very well.
0:49:51 > 0:49:54Tell me why you wanted to buy the flat with the shop.
0:49:54 > 0:50:01Mainly the shop, because this is where we buy all our reptile and snake food from.
0:50:01 > 0:50:03Wow! So you knew about this shop beforehand, did you?
0:50:03 > 0:50:05I only live five minutes away.
0:50:05 > 0:50:09So was the flat a significant part of the reason for buying it?
0:50:09 > 0:50:12- I'm not sure what I'm doing with this part yet?- OK.
0:50:12 > 0:50:15Sue from the shop might be taking it over and extending the shop up here.
0:50:15 > 0:50:21- Oh!- If she doesn't, I'm going to turn it into a really nice three-bed flat and then rent it out.
0:50:21 > 0:50:25Well, it's now six months later and we meet Fran again.
0:50:27 > 0:50:30The appearance of the property has really improved
0:50:30 > 0:50:33with new guttering and a repainted front and back.
0:50:36 > 0:50:39Inside the flat the layout has totally changed.
0:50:41 > 0:50:44Walls have come down and the damp has been sorted because Fran and Sue
0:50:44 > 0:50:49are converting it into a new home for reptiles from the shop below.
0:50:52 > 0:50:55Space has to be found for a new staircase to accommodate
0:50:55 > 0:50:58access from the shop, as Fran explains.
0:51:00 > 0:51:04We've actually taken this wall down, this part used to be the kitchen,
0:51:04 > 0:51:07that was the lounge, we've opened it up totally.
0:51:07 > 0:51:09We've lost a bit of space at the end where we had to run
0:51:09 > 0:51:13the staircase but it made it much more spacious and light now.
0:51:13 > 0:51:18With many walls removed the new layout of the former flat
0:51:18 > 0:51:20is now going to be home to the reptiles from the shop below
0:51:20 > 0:51:24and downstairs will house the fish and aquatic equipment.
0:51:24 > 0:51:26# Every little fish can swim
0:51:26 > 0:51:28# Every little bird can fly... #
0:51:30 > 0:51:33Before Fran could change the use for the first floor
0:51:33 > 0:51:34she needed permission.
0:51:36 > 0:51:41It was commercial use downstairs, residential up here. I had to apply
0:51:41 > 0:51:45for change of use which has taken a lot longer to get than we thought.
0:51:47 > 0:51:50This former three-bedroom flat has already had a lot of rewiring
0:51:50 > 0:51:54ready for the new reptile residence and it's lucky the fish are staying downstairs
0:51:54 > 0:52:00because Fran's seen more than enough water up here already.
0:52:00 > 0:52:04The damp was absolutely horrendous, it was the wall over here,
0:52:04 > 0:52:08it was that wall, that room there, it was just floor to ceiling black.
0:52:08 > 0:52:11Basically we stripped it all back pretty much to brickwork
0:52:11 > 0:52:14and hopefully, fingers crossed, problem solved.
0:52:14 > 0:52:17According to the lease, the tenant is responsible for repair
0:52:17 > 0:52:23and maintenance costs but Fran decided she would share
0:52:23 > 0:52:27the burden, anticipating putting between £5000-£6000 into the renovation.
0:52:27 > 0:52:31She knew that would increase if she decided to keep the three-bedroom flat
0:52:31 > 0:52:35as living accommodation, but how much has she spent on the conversion?
0:52:36 > 0:52:38I've probably spent about £8,000 on it.
0:52:40 > 0:52:44But Sue spent some as well, so we're probably around £15,000.
0:52:44 > 0:52:47So including the purchase price, Fran has spent
0:52:47 > 0:52:51a total of £144,000 so far.
0:52:51 > 0:52:53That will inevitably increase
0:52:53 > 0:52:57when the final work is done according to building regulations.
0:52:57 > 0:52:59# I don't like spiders and snakes
0:52:59 > 0:53:04# And that ain't what it takes to love me... #
0:53:04 > 0:53:11So how long will it be before Fran and daughter Rhiannon can get supplies for their pet snake, Fred?
0:53:11 > 0:53:16As soon as we get the full planning permission this will all be fitted out and be done,
0:53:16 > 0:53:20so we're looking at probably a couple of months, maybe, if that.
0:53:20 > 0:53:26Time to hear what two local estate agents think of the conversion
0:53:26 > 0:53:28and the financial prospects
0:53:28 > 0:53:30for the new commercial property.
0:53:30 > 0:53:33Yeah, obviously a bit different to what we were expecting them to do
0:53:33 > 0:53:36but I think the major issues were the damp and the guttering
0:53:36 > 0:53:41and that has been sorted out and everything looks clean and tidy.
0:53:41 > 0:53:46If I was converting upstairs to be an extension to my business
0:53:46 > 0:53:49premises downstairs I'd still keep in the back of my head that
0:53:49 > 0:53:54one day this is going to be a flat, so I'm going to be thoughtful about where my plumbing's
0:53:54 > 0:53:59going to go, where my electrics, where my inter-connecting doors, where my windows are.
0:53:59 > 0:54:02At the moment it is going to be used as an extension to the business
0:54:02 > 0:54:05which is a great idea, it works for the owners, but in the future
0:54:05 > 0:54:08it would be quite easy to turn this back in to a residential flat.
0:54:08 > 0:54:11Obviously you'd apply for a change of lease again.
0:54:11 > 0:54:13There's quite a large balcony area out the back,
0:54:13 > 0:54:17it would be fairly straight forward to build out onto there
0:54:17 > 0:54:22so if you're needing more commercial space, or one day when it's a flat you can build out there
0:54:22 > 0:54:26and give an extra room or so on, so it's quite a valuable asset.
0:54:27 > 0:54:32Fran has spent £144,000 so far but how much do the experts think
0:54:32 > 0:54:36the whole property will be worth once the former flat is finished?
0:54:37 > 0:54:40Taking into account the work they've done upstairs
0:54:40 > 0:54:43and how that's going to look when it's finished
0:54:43 > 0:54:47you're probably looking at achieving around £150-£170,000.
0:54:47 > 0:54:50If the entirety of the property was being sold on it really
0:54:50 > 0:54:53wouldn't make a lot of difference whether it was tenanted
0:54:53 > 0:54:56at the regular rate round here or actually if it was empty,
0:54:56 > 0:55:00it's still going to make about £160,000, give or take a bit either way.
0:55:01 > 0:55:06That valuation range, from £150-£170,000 would produce
0:55:06 > 0:55:11a gross profit of between £6,000 and £26,000, minus tax,
0:55:11 > 0:55:15expenses and any additional costs to complete the work.
0:55:15 > 0:55:18Is she pleased with that?
0:55:18 > 0:55:20Yeah. Very.
0:55:20 > 0:55:23What commercial income could the property produce
0:55:23 > 0:55:26if Fran decided to renegotiate the rent
0:55:26 > 0:55:31which stands at around £11,000 a year for the ground floor shop alone?
0:55:31 > 0:55:34If we were to rent it out on the commercial market
0:55:34 > 0:55:36as a commercial unit with the extension to the business
0:55:36 > 0:55:40we're probably looking at achieving around £14,000 per annum.
0:55:40 > 0:55:44When upstairs is in apple pie order, as nice as it could possibly be,
0:55:44 > 0:55:46you're looking at about £15,000 per annum.
0:55:48 > 0:55:55There's a potential yield there of between 9.5-10.5% should Fran choose to raise Sue's rent.
0:55:55 > 0:55:59The property experts reckoned that if sold as a separate entity
0:55:59 > 0:56:04the first floor flat could achieve between £75-£90,000.
0:56:04 > 0:56:07Is that an option Fran might consider?
0:56:07 > 0:56:11Well, while Sue's got it I'm happy as it is, but if she wanted
0:56:11 > 0:56:15to just have the shop then I would turn it back into a three-bed flat again.
0:56:17 > 0:56:21Well, Fran already knew the property before she bought it.
0:56:21 > 0:56:23It's one of the places she buys her reptile food
0:56:23 > 0:56:27but did she bite off more than she could chew with this venture?
0:56:28 > 0:56:30I'd definitely do it again.
0:56:30 > 0:56:34It's been really good, a bit hard work at times, bit frustrating
0:56:34 > 0:56:37but I would definitely do it again.
0:56:39 > 0:56:41Well that's it for today's show,
0:56:41 > 0:56:44we'll have plenty more property auction stories for you next time,
0:56:44 > 0:56:47some with happy endings, others, hmmm, maybe not so.
0:56:47 > 0:56:50And you won't want to miss out so make sure you join us for more
0:56:50 > 0:56:51Homes Under The Hammer.
0:56:51 > 0:56:53- We'll see you then.- Goodbye. - Goodbye.
0:57:05 > 0:57:08Subtitles by Red Bee Media Ltd