0:00:02 > 0:00:05- Hello and welcome!- Now we all know that the value of properties
0:00:05 > 0:00:06can go down as well as up.
0:00:06 > 0:00:09So it pays to buy at the right price in the first place.
0:00:09 > 0:00:11Yes and one way you can do that
0:00:11 > 0:00:14is by buying your home under the hammer.
0:00:39 > 0:00:42If you're sitting at home, thinking you'd like to have a go
0:00:42 > 0:00:45at bidding at auction, maybe now is the time to do it.
0:00:45 > 0:00:48The market is always changing so you have to judge
0:00:48 > 0:00:50when is the right time to buy.
0:00:50 > 0:00:53Today's bidders have already put their money on the line.
0:00:53 > 0:00:55Here's what they bought.
0:00:56 > 0:00:59I'll be discovering that this three-bedroom house in Derby
0:00:59 > 0:01:01has a surprise out the back.
0:01:01 > 0:01:05You have got space and that is great news.
0:01:06 > 0:01:09Talking of surprises, I'm taken aback by the electrics
0:01:09 > 0:01:11at this place in Kent.
0:01:11 > 0:01:13Look, a lovely old Bakelite switch.
0:01:13 > 0:01:16Gosh, these are so old!
0:01:16 > 0:01:20And this Cumbrian property is pretty dated from the outside
0:01:20 > 0:01:22but is there potential inside?
0:01:22 > 0:01:25Phew! All in all,
0:01:25 > 0:01:27I think it's great!
0:01:27 > 0:01:30All these properties went to auction.
0:01:30 > 0:01:33We'll find out who bought them and what they paid
0:01:33 > 0:01:35- when they went under the hammer. - Sold!
0:01:40 > 0:01:43This is Derby, the city that sits right in the middle
0:01:43 > 0:01:46of England on the banks of the River Derwent.
0:01:48 > 0:01:51I'm about two miles outside Derby city centre
0:01:51 > 0:01:53in an area known as Mackworth.
0:01:53 > 0:01:56In the 1950s this estate was built
0:01:56 > 0:01:58and it is now one of the biggest in the country.
0:01:58 > 0:02:01But it's quite well-designed, there's lots of facilities
0:02:01 > 0:02:03for local residents and lots of nice open spaces,
0:02:03 > 0:02:06so a good place to live.
0:02:12 > 0:02:13This estate has a pleasant feel to it.
0:02:13 > 0:02:16It's a very popular area of Derby
0:02:16 > 0:02:20with most of the houses being owner-occupied.
0:02:20 > 0:02:23One thing you have to be aware of in an estate like this,
0:02:23 > 0:02:26is that there's a possibility of the houses being
0:02:26 > 0:02:30made of non-standard construction, that's basically concrete blocks.
0:02:30 > 0:02:34Intrinsically, not necessarily a problem but the problem occurs
0:02:34 > 0:02:37when you come to get a mortgage because a lot of mortgage lenders
0:02:37 > 0:02:40will not lend on non-standard construction properties.
0:02:40 > 0:02:43The good news is the property that was auctioned on the right here
0:02:43 > 0:02:46has had remedial work done -
0:02:46 > 0:02:49basically bricks to replace the non-standard construction.
0:02:49 > 0:02:51The trouble is, the one attached to it
0:02:51 > 0:02:53is still the original non-standard construction.
0:02:53 > 0:02:55You can see the concrete blocks.
0:02:55 > 0:02:57Not sure if that's an issue or not.
0:02:57 > 0:03:00But for now, it's very good news. This one is OK.
0:03:00 > 0:03:04# I got some good news and some bad news
0:03:04 > 0:03:07# For you today. #
0:03:09 > 0:03:12The local authority bricked around the properties as part
0:03:12 > 0:03:15of improvement work carried out around the area.
0:03:15 > 0:03:18But the house next door was privately owned at the time
0:03:18 > 0:03:22so did not benefit from the work, although, of course,
0:03:22 > 0:03:24this may not cause any problems.
0:03:24 > 0:03:28With a guide price auction of 65,000, I'm keen to see more.
0:03:30 > 0:03:32Let's hope the inside
0:03:32 > 0:03:35has had its problems sorted out as well.
0:03:35 > 0:03:38Through the front door, into a little, sort of, entrance area.
0:03:38 > 0:03:40It's quite nice.
0:03:40 > 0:03:43You're struck by this amazingly red carpet the moment you walk through
0:03:43 > 0:03:46the door but in general it looks to be in pretty good condition.
0:03:46 > 0:03:49It doesn't smell damp or anything like that, so that's good.
0:03:49 > 0:03:52Fairly standard layout, passageway down through to the kitchen
0:03:52 > 0:03:57into a lounge/living room area
0:03:57 > 0:03:59that's obviously been knocked through at some point
0:03:59 > 0:04:01to create a really nice open space.
0:04:01 > 0:04:05The only thing I would want to do is to put some huge great
0:04:05 > 0:04:09doors on there, maybe one of those sliding bi-fold door scenarios.
0:04:09 > 0:04:10That would be spectacular.
0:04:10 > 0:04:13Apart from that, I'm straight away thinking,
0:04:13 > 0:04:15"This is a good property!"
0:04:15 > 0:04:18# Good news - it'll stay with you All of your days
0:04:18 > 0:04:21# Good news - it'll keep you In all of your ways. #
0:04:21 > 0:04:24Upstairs there are two decent bedrooms at the back and front
0:04:24 > 0:04:28of the property and another much smaller bedroom over the stairs.
0:04:28 > 0:04:31The bathroom has been adapted
0:04:31 > 0:04:34into an accessible wet room
0:04:34 > 0:04:37and other than it being a little on the small side,
0:04:37 > 0:04:40the kitchen is usable in its current state.
0:04:40 > 0:04:42However, like much of the house,
0:04:42 > 0:04:46a bit of money spent upgrading it would make a huge difference.
0:04:48 > 0:04:50So, at the rear of the property, and joy of joys,
0:04:50 > 0:04:53something which turns this from a fairly nice
0:04:53 > 0:04:55but typical three-bedroom semi
0:04:55 > 0:04:59into a really lovely family home.
0:04:59 > 0:05:01Look at the size of this garden. Absolutely superb.
0:05:01 > 0:05:05You've got an aviary if you want to keep birds, little shed.
0:05:05 > 0:05:08You've got a pond, more, sort of, sheds at the bottom,
0:05:08 > 0:05:10space for growing your own vegetables.
0:05:10 > 0:05:12You might want to put this to lawn, knock it down,
0:05:12 > 0:05:15get rid of the pond, but either way
0:05:15 > 0:05:19you have got space and that is great news!
0:05:19 > 0:05:23But the garden's an expected bonus and a real selling point.
0:05:23 > 0:05:26Some French doors leading out from the living room would be
0:05:26 > 0:05:29a great addition and an improvement I'd certainly want to do.
0:05:29 > 0:05:31With an auction guide price of 65,000,
0:05:31 > 0:05:34I think this place is potentially great value.
0:05:34 > 0:05:35To see if he agreed,
0:05:35 > 0:05:39we asked the auctioneer who sold the property for his opinion.
0:05:39 > 0:05:41This will be a good buy for somebody.
0:05:41 > 0:05:43You'd probably look at refitting
0:05:43 > 0:05:45kitchen and bathroom,
0:05:45 > 0:05:47you'd look at central heating,
0:05:47 > 0:05:51you may have to look at the wiring, you'd look at decorating
0:05:51 > 0:05:52and some of the windows.
0:05:52 > 0:05:57How much is the house worth in its current state?
0:05:57 > 0:05:59I would value this property at £70,000.
0:05:59 > 0:06:03And with some work done to bring it up to scratch?
0:06:03 > 0:06:05I'd say that once renovated,
0:06:05 > 0:06:08it would have a value of probably late 80,000,
0:06:08 > 0:06:11maybe 87, £88,000.
0:06:11 > 0:06:15What about renting it out after those improvements?
0:06:15 > 0:06:17The sort of price you'd achieve
0:06:17 > 0:06:22when the work is done, would be in the order of £525 a calendar month.
0:06:23 > 0:06:27This is a really great house that just needs a bit of effort to
0:06:27 > 0:06:30turn it into a potentially lovely home.
0:06:30 > 0:06:34A good price too, in a nice location. What's not to like?
0:06:34 > 0:06:37Let's see who bought when it went under the hammer.
0:06:37 > 0:06:3860,000 to start.
0:06:38 > 0:06:4260. Who's got 58? 58? He has. Thank you.
0:06:42 > 0:06:4359 is bid.
0:06:43 > 0:06:45At 59. 60,000. At 60.
0:06:45 > 0:06:4861, I've got. 61.
0:06:48 > 0:06:5162? 62 is bid.
0:06:51 > 0:06:5563. 63, 64. 65.
0:06:55 > 0:06:59At £65,000, it's in the market, 66...
0:06:59 > 0:07:0467, 67, 68. 68?
0:07:04 > 0:07:07500? No?
0:07:07 > 0:07:10At 68,000 on the right, 500 somewhere else?
0:07:10 > 0:07:14It's in the market, we're selling it. The bid is £68,000.
0:07:14 > 0:07:18For the first time, for the second time,
0:07:18 > 0:07:20third and last opportunity.
0:07:20 > 0:07:22Sold at 68,000. Thank you.
0:07:22 > 0:07:25It was husband and wife team, Ed and Vicky
0:07:25 > 0:07:29who made the successful bid of £68,000.
0:07:30 > 0:07:34Ed's a self-employed electrician and Vicky helps him
0:07:34 > 0:07:36with the running of the business.
0:07:36 > 0:07:38This is their first investment property
0:07:38 > 0:07:41and I met up with them to find out more about it.
0:07:41 > 0:07:43# We'll always be together
0:07:43 > 0:07:49# Together in Electric Dreams. #
0:07:51 > 0:07:53- Ed, Vicky, lovely to meet you both. - And you.
0:07:53 > 0:07:55- Congratulations.- Thank you.
0:07:55 > 0:07:57Tell me why you wanted to buy this place.
0:07:57 > 0:08:01We were looking for some rental investments.
0:08:01 > 0:08:02We liked the area, so we thought
0:08:02 > 0:08:05if it was in our price bracket we'd go for it.
0:08:05 > 0:08:07Is this something you've done before?
0:08:07 > 0:08:10No, we've not done a rental investment before
0:08:10 > 0:08:12so we're new to it.
0:08:12 > 0:08:15So what was the driving decision? Why now?
0:08:15 > 0:08:18That's down to me really.
0:08:18 > 0:08:21My little boy started school in September.
0:08:21 > 0:08:23So I was looking for something to occupy my time,
0:08:23 > 0:08:26keep me out of trouble and this was it.
0:08:26 > 0:08:28- Yeah, it's all down to me!- Right!
0:08:28 > 0:08:31And the idea then, Vicky, tell me more, is what?
0:08:31 > 0:08:34You're going to be at work, Ed, and you're doing the project?
0:08:34 > 0:08:37Yeah. My background is architectural
0:08:37 > 0:08:40so I'm used to houses and property,
0:08:40 > 0:08:44so yeah, I'll be doing as much work as I physically can,
0:08:44 > 0:08:49keeping me out of trouble, organising, buying things, doing...
0:08:49 > 0:08:51yeah, occupying my time that way.
0:08:51 > 0:08:54They're taking the plunge into the world of property developing.
0:08:54 > 0:08:58As Ed's an electrician they're off to a good start so far.
0:08:58 > 0:09:00However, this was a last-minute purchase
0:09:00 > 0:09:04as the only decided to go to the auction a few hours before.
0:09:08 > 0:09:11- So had you seen it before the auction?- No.- No?
0:09:11 > 0:09:15- We'd had a drive past.- We drove past on the Sunday before.
0:09:15 > 0:09:18Put the kids in the car, drove past, wound down the window and said,
0:09:18 > 0:09:22- "Yeah, that looks good."- That was the extent of your survey?- Yeah.
0:09:22 > 0:09:24Tsk tsk.
0:09:24 > 0:09:28- Had you actually seen inside? - No.- Wow!
0:09:28 > 0:09:32We drove past another one but that was too much money!
0:09:32 > 0:09:35This isn't, sort of, the most thorough thing you could have
0:09:35 > 0:09:37done in preparation for buying, is it?
0:09:37 > 0:09:41We looked on the internet on Sunday night to see values.
0:09:41 > 0:09:45- See what they'd rent for. - What about the legal pack?
0:09:45 > 0:09:48We didn't consider that, really.
0:09:48 > 0:09:50No, we didn't read that!
0:09:50 > 0:09:53You know this is breaking all the rules, don't you?
0:09:53 > 0:09:55But it's more fun that way!
0:09:55 > 0:09:57More fun and potentially disastrous!
0:09:57 > 0:10:02It could have turned horribly wrong, you could have found there was a covenant on it,
0:10:02 > 0:10:06or it was leasehold instead of freehold, all sorts of things.
0:10:06 > 0:10:09We took the view there's hundreds of houses very similar in the area
0:10:09 > 0:10:12and if it applies to one, it'll apply to them all
0:10:12 > 0:10:16and we would have probably heard of any problems.
0:10:16 > 0:10:18Without doing the research on this place,
0:10:18 > 0:10:21Ed and Vicky could be in a spot of bother,
0:10:21 > 0:10:23if they weren't quite so lucky.
0:10:23 > 0:10:28So now they've got it, what are they going to do with it?
0:10:28 > 0:10:31So, what's the plan for it?
0:10:31 > 0:10:34We're in for a look around, probably a bit of a refurb.
0:10:34 > 0:10:37The kitchen and bathroom probably need changing.
0:10:37 > 0:10:39Obviously a rewire if it needs doing.
0:10:39 > 0:10:41It looks like it needs central heating,
0:10:41 > 0:10:43perhaps new windows if we can afford it.
0:10:43 > 0:10:45Patio doors out to the garden or anything like that?
0:10:45 > 0:10:50- Yeah, we had considered putting patio doors in.- If it's in the budget.- Yeah.
0:10:50 > 0:10:55What about outside? You've got a very large, impressive garden at the back, haven't you?
0:10:55 > 0:10:59- If you say so. - Have you seen the garden yet?- No.
0:10:59 > 0:11:03I'll take you there in a bit. I'll show you the house you bought, shall I?
0:11:03 > 0:11:06So, with that new information in mind,
0:11:06 > 0:11:08what do you think you might do with the garden?
0:11:08 > 0:11:11Clear it and try and make it low maintenance
0:11:11 > 0:11:15so if you've got tenants in, then it's not so much work to do.
0:11:15 > 0:11:19Just come in and do the basics and rent it straight back out again.
0:11:19 > 0:11:23Ed and Vicky intend to spend three months renovating this house before renting it out.
0:11:23 > 0:11:27In the future they'd like to do another three properties
0:11:27 > 0:11:29that will eventually be their pension plan.
0:11:29 > 0:11:32As this is the start of an investment portfolio
0:11:32 > 0:11:36I'm glad to hear they've worked out a budget, well, sort of.
0:11:39 > 0:11:43- OK, what's the budget? - Between 8 and 12.- Right.
0:11:43 > 0:11:45Four grand contingency, what's that for?
0:11:45 > 0:11:46We haven't actually seen it.
0:11:46 > 0:11:49- We don't know what there is to do. - We don't know what there is to do.
0:11:49 > 0:11:52There is always that, yeah!
0:11:53 > 0:11:58Once we've decided what there is to do, then we'll have a better idea.
0:11:58 > 0:12:01Having seen it now a bit,
0:12:01 > 0:12:04where are we in the 8 to 12 range?
0:12:04 > 0:12:09I think we'll be able to afford new windows and hopefully get it in at ten grand.
0:12:09 > 0:12:12Congratulations, good luck. I'm looking forward to seeing how you get on.
0:12:12 > 0:12:14- Thank you.- Thank you.
0:12:14 > 0:12:19Now, look, I know things may have turned out OK for Ed and Vicky in this property,
0:12:19 > 0:12:23which not only they didn't see before they bought it, but they didn't read the legal pack.
0:12:23 > 0:12:26But for every one person who it turns out OK for,
0:12:26 > 0:12:30there are ten people who wish they'd taken the trouble to see the property
0:12:30 > 0:12:32and read that all-important legal pack.
0:12:32 > 0:12:35Just don't buy a property without doing it, OK?
0:12:35 > 0:12:39In the meantime, they'll probably get on quite well sorting this place out.
0:12:39 > 0:12:42You can find out how it turns out later in the show.
0:12:45 > 0:12:49The next place that went under the hammer
0:12:49 > 0:12:51is in Kent in the town of Rainham.
0:12:52 > 0:12:57Here's today's offering. It's a bay-fronted, 1930s, semi-detached house.
0:12:57 > 0:13:00It's got three bedrooms and three reception rooms
0:13:00 > 0:13:03and the guide price is 130-135,000.
0:13:03 > 0:13:06Not bad from the outside.
0:13:06 > 0:13:09If you look closely next door up there on the roof,
0:13:09 > 0:13:13you can also see there is the potential to extend upwards.
0:13:13 > 0:13:17But will you need to? Let's go inside and find out.
0:13:20 > 0:13:24The property is in classic 1930s style,
0:13:24 > 0:13:28bay-fronted with a brick bottom, a rendered top half
0:13:28 > 0:13:30and wooden window frames that look original.
0:13:32 > 0:13:35I really like 1930s houses.
0:13:35 > 0:13:38And this one has got so much character.
0:13:38 > 0:13:41You can see it hasn't been touched in many years.
0:13:41 > 0:13:43Really old-fashioned wallpaper,
0:13:43 > 0:13:47but look at these lovely features like this post and this panelling.
0:13:47 > 0:13:51And look, a lovely, old Bakelite switch.
0:13:51 > 0:13:53Gosh, these are so old.
0:13:53 > 0:13:56That tells me this house probably needs completely rewiring,
0:13:56 > 0:13:59so money to be spent there.
0:13:59 > 0:14:01There's a really cosy sitting room,
0:14:01 > 0:14:06a lovely old fireplace that's tiled - not to everybody's case, but I quite like that.
0:14:06 > 0:14:10You've got typical of the 30s era that lovely, bay fronted window.
0:14:10 > 0:14:14Got another sitting room towards the back of the property.
0:14:14 > 0:14:18The good thing about this kitchen is you've got a lovely view of the garden.
0:14:18 > 0:14:22It's not a bad space, but I wouldn't call the units in here a kitchen.
0:14:22 > 0:14:25You've got to think about installing something new.
0:14:25 > 0:14:28There are quite a lot of things to think about.
0:14:28 > 0:14:32This house reminds me of my childhood home.
0:14:32 > 0:14:34I grew up in a house just like this.
0:14:34 > 0:14:38It's got quite a nice feeling this place, I like it.
0:14:38 > 0:14:43# Yeah, I like it... #
0:14:43 > 0:14:47The house had a guide price of 130-135,000.
0:14:47 > 0:14:52Whoever bought it will need to budget for a complete refit of the kitchen,
0:14:52 > 0:14:55plus a potential rewire and replumb.
0:14:55 > 0:15:02There's no central heating either and I'm concerned about some cracks I've noticed downstairs.
0:15:02 > 0:15:06The second reception room, next to the kitchen, is well proportioned.
0:15:06 > 0:15:10'It looks out onto the garden which, like a lot of 1930s properties,
0:15:10 > 0:15:11'is a good size.'
0:15:13 > 0:15:17What is on offer on the first floor?
0:15:18 > 0:15:21Most people today are making the most of their space
0:15:21 > 0:15:25in their houses and one way to do that is by having a loft conversion.
0:15:25 > 0:15:28It will certainly add value to your home.
0:15:28 > 0:15:31We can see the next-door neighbours have already done that.
0:15:31 > 0:15:35Judging by this space up here, I think it would be a good idea.
0:15:35 > 0:15:38You have not got the biggest bathroom in the world. Three small bedrooms here.
0:15:38 > 0:15:40Do you know what?
0:15:40 > 0:15:44Before I start going on about loft conversions, look at this,
0:15:44 > 0:15:511, 2, 3, 4 huge cracks.
0:15:51 > 0:15:57Alarm bells are ringing in my head. Dare I say the dreaded S word?
0:15:57 > 0:15:59Subsidence.
0:15:59 > 0:16:03I would certainly get that looked at. Get a structural survey
0:16:03 > 0:16:05done before anything happens.
0:16:06 > 0:16:10Outside, there are more worrying signs that there could be
0:16:10 > 0:16:11some serious problems here.
0:16:11 > 0:16:16'If they are as bad as I suspect, this house may require underpinning.
0:16:16 > 0:16:18'That could present big problems as mortgage companies
0:16:18 > 0:16:22'are reluctant to lend on properties with a history of subsidence.'
0:16:22 > 0:16:26That means this one would only appeal to a cash purchaser.
0:16:28 > 0:16:30It is not all bad news.
0:16:30 > 0:16:34I found a note which gives an interesting insight into this place.
0:16:34 > 0:16:38Walking around this property,
0:16:38 > 0:16:41you can tell this house has just frozen in time.
0:16:41 > 0:16:43You can feel the history here.
0:16:43 > 0:16:49This is the story of the previous owner. Her name was Mary.
0:16:49 > 0:16:53This was left here by her granddaughter for the new owner to find.
0:16:53 > 0:16:56Mary lived in this house for 56 years
0:16:56 > 0:17:00until she passed away at the ripe old age of 106.
0:17:00 > 0:17:02It says it all down here.
0:17:02 > 0:17:05She remembered the Titanic sinking when she was 10 years old.
0:17:05 > 0:17:06When she was a teenager,
0:17:06 > 0:17:09she waved the young soldiers off to the Great War.
0:17:09 > 0:17:14It says she had seven children, 22 grandchildren,
0:17:14 > 0:17:2014 great grandchildren, 2 great-great grandchildren.
0:17:20 > 0:17:25That is 101 descendants at the last count. Wow!
0:17:25 > 0:17:30Mary was loved and this house was also well loved.
0:17:30 > 0:17:33I knew it had that nice happy feeling.
0:17:40 > 0:17:43Will this be a happy home for the person who bought it at auction?
0:17:43 > 0:17:46We invited a local estate agent to come and have a look
0:17:46 > 0:17:51at the house which had an auction guide price of £130-135,000.
0:17:51 > 0:17:53What does she make of the place?
0:17:57 > 0:18:00The biggest concern is the cracks and there is an awful lot of them.
0:18:00 > 0:18:03Whoever decides to buy this really must have a structural survey
0:18:03 > 0:18:05and be very careful.
0:18:05 > 0:18:07'It looks as though probably the drains have gone
0:18:07 > 0:18:09'and it is still moving.'
0:18:12 > 0:18:15The size and layout here is typical 1930s
0:18:15 > 0:18:19so would an extension or a loft conversion be desirable?
0:18:20 > 0:18:22It would be a great idea if you could go into the loft
0:18:22 > 0:18:23and give it that bigger bedroom.
0:18:23 > 0:18:27And go out to the back to give it a bigger kitchen and maybe conservatory.
0:18:27 > 0:18:31Assuming the structural issues were sorted out,
0:18:31 > 0:18:34how much could the house be worth after a full refurbishment?
0:18:36 > 0:18:38I would look at selling the property
0:18:38 > 0:18:42somewhere between £200-220,000 in the current market.
0:18:42 > 0:18:45With a bedroom in the loft and the extension on the back,
0:18:45 > 0:18:50we could be looking at £250-275,000.
0:18:50 > 0:18:53Maybe more as the market improves.
0:18:53 > 0:18:54I think this house is lovely.
0:18:54 > 0:18:56It has got charm, character features
0:18:56 > 0:19:00and loads of extending potential, but it has also got some
0:19:00 > 0:19:05subsidence issues which will have serious budget implications.
0:19:05 > 0:19:09Who was brave enough to tackle this cracking property?
0:19:09 > 0:19:11Let's find out in the auction room.
0:19:12 > 0:19:15The last lot of the day is a bay-fronted semi.
0:19:15 > 0:19:22120 to start me. At 120, I'm on the way. 120, thank you. 125 now.
0:19:22 > 0:19:26125 at the back. Thank you. 130, on the left.
0:19:26 > 0:19:30135? 132, I've got sitting.
0:19:30 > 0:19:33It's clearly a popular lot with a lot of interest in the auction room.
0:19:33 > 0:19:37We rejoin the bidding at £160,000.
0:19:37 > 0:19:41£160,000 with the gentleman with the dark checked jumper on.
0:19:41 > 0:19:46161. I've got him first at 162.
0:19:46 > 0:19:49I'll take 163 from you.
0:19:49 > 0:19:57164, 164 I've got. 165 I've got. 166. 167.
0:19:57 > 0:20:00If you want to bid again, it is still there. 168.
0:20:00 > 0:20:03168, he does. 170, what does that mean?
0:20:04 > 0:20:07168 then again sitting, for the first time.
0:20:08 > 0:20:12Half?! 168,500.
0:20:12 > 0:20:17170? 170. £170,000, it will be sold to the gentleman.
0:20:17 > 0:20:21For the first time, second time, if you're sure you're all done,
0:20:21 > 0:20:24Third and final time, no other chances to buy it.
0:20:24 > 0:20:28It is yours for £170,000. Well done.
0:20:28 > 0:20:32After that lengthy auction, the final successful bid of 170,000
0:20:32 > 0:20:37came from Paul who currently lives in Gillingham with his wife Bev.
0:20:37 > 0:20:41It was Paul and his son Gavin who I met at the house.
0:20:41 > 0:20:44# Get your motor running... #
0:20:44 > 0:20:48Paul is a Hells Angel who used to have a small building company
0:20:48 > 0:20:50but he now spends his time representing his motorcycle club
0:20:50 > 0:20:54at rallies all over Europe.
0:20:59 > 0:21:01- Congratulations, guys.- Thank you.
0:21:01 > 0:21:04- Paul, you were at the auction.- Yes, I was.
0:21:04 > 0:21:09- Why did you want to buy this on auction day? - I got married last year to Bev
0:21:09 > 0:21:14and we wanted to buy a place for our own home together.
0:21:14 > 0:21:17For both of us, it is the third time getting married.
0:21:17 > 0:21:20We preferred to buy somewhere that didn't need any work
0:21:20 > 0:21:23doing on it, just move in, but because this one has got a lot
0:21:23 > 0:21:26more potential, for the money, it was a better buy in the end.
0:21:26 > 0:21:30- Gavin, you weren't there, were you?- No, I wasn't.
0:21:30 > 0:21:34Are you going to be helping your dad out with all the renovations here?
0:21:34 > 0:21:39I'm going to be helping people do bits wherever I can for experience when I'm going to college.
0:21:39 > 0:21:41What are you going to college to do?
0:21:41 > 0:21:44I'm going to train in carpentry.
0:21:44 > 0:21:48I used to work in carpentry before I built summerhouses and log cabins.
0:21:48 > 0:21:50I've got some experience.
0:21:50 > 0:21:53I'm going to go to college so I can get the qualifications I need
0:21:53 > 0:21:55so I can hopefully start my own business
0:21:55 > 0:21:58and take after my dad owning my own business.
0:21:58 > 0:22:01Paul, when you walked in here for the first time and you viewed it,
0:22:01 > 0:22:02what did you think?
0:22:02 > 0:22:06I was a bit stunned when I first walked in. It's like a time capsule.
0:22:06 > 0:22:11It's like a museum because of the age and style of everything.
0:22:11 > 0:22:16When I found out the history, it was great. That explains a lot of it.
0:22:16 > 0:22:20It's a touching story and it's beautiful that the granddaughter
0:22:20 > 0:22:25wanted whoever took on this property to know all about her grandmother.
0:22:25 > 0:22:27What I find amazing is that it is in such good condition
0:22:27 > 0:22:30apart from the cracks.
0:22:30 > 0:22:33What do you know about the cracks in this property?
0:22:33 > 0:22:37The cracks, when I came to see what the problem was,
0:22:37 > 0:22:41I looked in the drain and saw it was broken.
0:22:41 > 0:22:45I will fix the drains, but, as far as the subsidence goes,
0:22:45 > 0:22:46I will underpin the corner.
0:22:46 > 0:22:49I'd like to put an extension out the back.
0:22:49 > 0:22:54When we put the concrete in the foundations, we would be underpinning the back half as well.
0:22:55 > 0:22:59Paul will have to get the work inspected and certified
0:22:59 > 0:23:02to satisfy any mortgage lender that it has been carried out.
0:23:02 > 0:23:06He has funded this purchase with some inheritance money.
0:23:07 > 0:23:10To do all those cracks, it is about two or three days.
0:23:11 > 0:23:15He plans to install underfloor heating in the new extension
0:23:15 > 0:23:18and throughout the ground floor.
0:23:18 > 0:23:20Outside, he is going to reduce the front garden by half to
0:23:20 > 0:23:23provide some off-road parking.
0:23:23 > 0:23:28At the back, Bev is planning a vegetable plot and pond.
0:23:28 > 0:23:30What else are you going to be doing to this property?
0:23:30 > 0:23:33An extension out the back as we have said.
0:23:33 > 0:23:35I want to extend the roof
0:23:35 > 0:23:38because I want to put a loft conversion into a room up there.
0:23:38 > 0:23:41Are you going to be doing a lot of this work yourself?
0:23:41 > 0:23:43Some of the work myself.
0:23:43 > 0:23:46Most of the time, I'll be overseeing the work that is done.
0:23:46 > 0:23:50How much do you think all this work is going to cost you?
0:23:50 > 0:23:54That is a fair bit of work to be getting on with.
0:23:54 > 0:23:59It will cost round about... 25,000, maybe 30,000.
0:23:59 > 0:24:04There will be other bits to be put on because you want a nice bathroom and kitchen.
0:24:04 > 0:24:06That will put another 10 or 15 on it.
0:24:06 > 0:24:09Paul will have to await planning permission for the extension,
0:24:09 > 0:24:13but he intends to start the other work straight away.
0:24:14 > 0:24:17When do you guys see yourselves moving in?
0:24:17 > 0:24:20I would think, if we get stuck into the work,
0:24:20 > 0:24:23I think it is going to take four or five months.
0:24:23 > 0:24:25Guys, good luck with this project.
0:24:25 > 0:24:29- Thank you.- You've got a lot of hard work ahead of you.
0:24:29 > 0:24:33- I think it's going to be great. Well done.- Thank you.- Good to meet you.
0:24:33 > 0:24:37Paul and Gavin have got their hands full with this house.
0:24:37 > 0:24:40Every single room needs renovating,
0:24:40 > 0:24:42there is structural work that needs doing.
0:24:42 > 0:24:46I think he is underestimating that subsidence problem.
0:24:46 > 0:24:49The budget, what is it? 25, 30, 50,000?
0:24:49 > 0:24:53I think it could go even higher.
0:24:53 > 0:24:57Find out later in the programme what is really behind those cracks.
0:24:59 > 0:25:03Coming up, has this Cumbrian house got any nasty surprises for me?
0:25:03 > 0:25:07I'm not seeing anything I don't like so far. In fact, it's pretty good.
0:25:07 > 0:25:09Let's hope it carries on.
0:25:10 > 0:25:14Back in Kent, there have been problems with the renovation.
0:25:14 > 0:25:16We had already done the underpinning by the time
0:25:16 > 0:25:18we put the extension out the back.
0:25:18 > 0:25:21Otherwise, we would not have bothered.
0:25:21 > 0:25:25In Derby, an unexpectedly keen tenant slashed the deadline.
0:25:25 > 0:25:29We had to get the whole thing done and completed within four weeks.
0:25:34 > 0:25:37Back to the Mackworth area of Derby where electrician Ed and wife Vicky
0:25:37 > 0:25:42purchased this three-bedroom semi at auction for 68,000.
0:25:42 > 0:25:45In that line of work, Ed may be used to the odd shock,
0:25:45 > 0:25:48but he certainly gave me one
0:25:48 > 0:25:52when I discovered they had not viewed the house prior to buying it.
0:25:52 > 0:25:56You've got a very large and impressive garden at the back, haven't you?
0:25:56 > 0:25:58- If you say so.- What do you mean? Have you seen the garden yet?
0:25:58 > 0:26:02- No.- I'll take you there in a bit and show you the house you bought.
0:26:02 > 0:26:04That would be nice.
0:26:04 > 0:26:09# Ah, it's shocking it's electric...#
0:26:09 > 0:26:11Once we have finally had a look around,
0:26:11 > 0:26:14they were pleased to find there was nothing more suspect than
0:26:14 > 0:26:19dated decor and a kitchen and toilet crying out to be brought up to date.
0:26:20 > 0:26:23Two months later, we returned to the house to find out if, by buying it,
0:26:23 > 0:26:29Ed and Vicky were two bright sparks or did they have a few loose wires?
0:26:29 > 0:26:31I am pleased to say it is the former.
0:26:48 > 0:26:50We have done quite a lot to the house.
0:26:50 > 0:26:56It has been rewired, central heating, plumbing. Most major things.
0:26:56 > 0:27:00One of the biggest changes is the new modernised kitchen which
0:27:00 > 0:27:03is a much more open and bright space.
0:27:04 > 0:27:07We have done a lot of work in the kitchen.
0:27:07 > 0:27:10We took out the cupboard with the water cylinder in.
0:27:10 > 0:27:12That has made some fridge freezer space.
0:27:12 > 0:27:15We have put new units throughout.
0:27:15 > 0:27:20We have a new cooker and hob, new tiling and new floor.
0:27:20 > 0:27:21I am really pleased with it.
0:27:21 > 0:27:23I think it has come together really well in here.
0:27:23 > 0:27:27I think she can safely say that about the new bathroom upstairs as well.
0:27:30 > 0:27:32We did the bathroom.
0:27:32 > 0:27:36We took out the disabled suite and it's completely retiled,
0:27:36 > 0:27:40put in a new bathroom suite and that all looks very smart now.
0:27:40 > 0:27:44The bedrooms, it was cosmetic. We took out the old gas heaters.
0:27:44 > 0:27:46The central heating has gone in.
0:27:46 > 0:27:50We decorated it in magnolia and the tenant has made it lovely.
0:27:50 > 0:27:52She has put her own stamp on it and made it her own.
0:27:52 > 0:27:53It looks really great.
0:27:53 > 0:27:58You did hear Vicky right. A tenant has already moved in.
0:27:58 > 0:28:01How did that come about so quickly?
0:28:01 > 0:28:03It was the day we got the keys.
0:28:03 > 0:28:05Her father came across, knocked on the door and asked
0:28:05 > 0:28:08if we wanted to let it. I said we did.
0:28:08 > 0:28:11They came back round the next day and said they would have it there
0:28:11 > 0:28:13and then so that was great.
0:28:13 > 0:28:18We had to get the whole thing done, completed within four weeks.
0:28:18 > 0:28:20We did it in three and a half weeks.
0:28:20 > 0:28:21We had the carpets laid
0:28:21 > 0:28:25and left a day or two for the tenant to start moving in.
0:28:25 > 0:28:30Opportunity really did come knocking for Ed and Vicky.
0:28:33 > 0:28:34Securing a tenant so quickly was ideal,
0:28:34 > 0:28:38but bringing the schedule forward did have an impact on the budget.
0:28:41 > 0:28:45We wanted to do it for closer to eight, but because it was
0:28:45 > 0:28:50on such a tight timescale, we had to have extra people in to help.
0:28:50 > 0:28:55The extra cost was down to labour. We have come in just under 10,000.
0:28:55 > 0:28:57We are pleased with that.
0:28:58 > 0:29:00Has the work been worthwhile?
0:29:00 > 0:29:03We asked two local property experts to give us
0:29:03 > 0:29:07their thoughts on the work and the new value of the place.
0:29:07 > 0:29:10I particularly like the fact that the kitchen and bathroom have been
0:29:10 > 0:29:16replaced with something modern, clean and easy to use.
0:29:16 > 0:29:19This was a fairly straightforward renovation
0:29:19 > 0:29:24project in terms of improving what was here already.
0:29:24 > 0:29:26A fairly quick job but it seems to be a good standard.
0:29:26 > 0:29:30The contemporary neutral look is what tenants and buyers both want
0:29:30 > 0:29:33so they can move in and bring in whatever soft furnishings
0:29:33 > 0:29:35they have to make the property their own.
0:29:35 > 0:29:38The couple's work has already attracted a tenant,
0:29:38 > 0:29:40but are they charging the right amount of rent?
0:29:40 > 0:29:45What do the experts think?
0:29:45 > 0:29:47I would say this property has got a rental value
0:29:47 > 0:29:52of around 575-595 per calendar month.
0:29:52 > 0:29:57Rental value, I would estimate at up to £500 per calendar month.
0:29:57 > 0:30:00At the moment, our tenant pays 500.
0:30:00 > 0:30:06I originally thought 525 and accept around the 500 mark.
0:30:06 > 0:30:09The higher one seemed a little bit high,
0:30:09 > 0:30:13but, yes, we are pleased with what we're getting.
0:30:13 > 0:30:15I think it's a good price.
0:30:15 > 0:30:18They're happy with the figure they are charging,
0:30:18 > 0:30:21but what will they make of the resale value of the property?
0:30:21 > 0:30:24Remember, they purchased the house at auction for 68,000
0:30:24 > 0:30:27and spent around £10,000 renovating it.
0:30:27 > 0:30:30That makes a total outlay of around £78,000.
0:30:32 > 0:30:35If the owners opt to sell the property, I would imagine they would
0:30:35 > 0:30:39be looking in the region of putting it on the market at around £90,000.
0:30:39 > 0:30:46Sale value, as it stands, it would be about £85,000.
0:30:46 > 0:30:48Your asking price would be a bit more than that.
0:30:48 > 0:30:52- That's not too bad at all. - It's more or less what we expected.
0:30:52 > 0:30:56- For the current market, I think that's fine.- Yes.
0:30:56 > 0:31:04That's a potential pre-tax profit of between 7-12,000 before the usual selling expenses of course.
0:31:04 > 0:31:06Does that change their plans here?
0:31:06 > 0:31:08I think we would rent it again,
0:31:08 > 0:31:11although we might get some valuations just out of interest,
0:31:11 > 0:31:14but yes, the plan is to keep it long-term.
0:31:14 > 0:31:18Ed and Vicky already worked closely on Ed's electrical business.
0:31:18 > 0:31:21How did they get on with property managing on top of that?
0:31:32 > 0:31:36We are a good team and it was nice to spend a bit of time together.
0:31:36 > 0:31:39It was so much fun, I don't think I've ever had so much fun, to be honest.
0:31:39 > 0:31:44With this property brought up to date and filled with a happy tenant,
0:31:44 > 0:31:48will Ed and Vicky be looking to buy more properties?
0:31:48 > 0:31:52At the moment, we can't afford it financially.
0:31:52 > 0:31:55If I won the lottery, I would do it all the time.
0:31:55 > 0:31:59Yeah, we've definitely got the bug and would like to go again.
0:32:06 > 0:32:11This is the small Cumbrian town of Frizington,
0:32:11 > 0:32:13the main road between Cockermouth and Sellafield.
0:32:13 > 0:32:16The town consists of one main street,
0:32:16 > 0:32:20originally built to house coal and iron industry workers and,
0:32:20 > 0:32:23more recently, Sellafield employees.
0:32:23 > 0:32:27The one main street is made up of terraced houses.
0:32:27 > 0:32:32The property that was up for auction has something to celebrate.
0:32:32 > 0:32:37It was 100 years old just a few weeks ago.
0:32:37 > 0:32:40Guide price was £25-35,000
0:32:40 > 0:32:42for a two bed mid-terrace.
0:32:42 > 0:32:45Let's hope the years have been kind to her.
0:32:45 > 0:32:48# Happy birthday to ya
0:32:48 > 0:32:51# Happy birthday... #
0:32:51 > 0:32:55All these little houses look fairly sturdy, but on closer inspection,
0:32:55 > 0:32:59you can see a bit of wear and tear, especially round the windows.
0:32:59 > 0:33:02The paintwork needs some attention, too.
0:33:02 > 0:33:06Nice double-glazed front door which is a good start.
0:33:06 > 0:33:09The porch keeps the draughts and the noise from the road out.
0:33:09 > 0:33:14Front sitting room doesn't look to be in too bad condition.
0:33:14 > 0:33:16You've got an open fire which is lovely.
0:33:16 > 0:33:19Stairs up to your bedroom then through to the rear sitting room.
0:33:19 > 0:33:23I'm not seeing anything I don't like so far. In fact, it's pretty good.
0:33:23 > 0:33:24Let's hope it carries on.
0:33:24 > 0:33:29This is looking promising with both sitting rooms a good size, too.
0:33:29 > 0:33:32Will the kitchen continue the trend?
0:33:32 > 0:33:35The kitchen where you have a door to the back garden there
0:33:35 > 0:33:39and then through to this long and narrow space.
0:33:40 > 0:33:43It is not in too bad condition.
0:33:43 > 0:33:48You might want to change the doors and the work surfaces. It is perfectly serviceable.
0:33:48 > 0:33:54One thing I would do is take these walls out.
0:33:54 > 0:33:55You have a utility area here.
0:33:55 > 0:33:58This would have been put in because the building regulations
0:33:58 > 0:34:00used to state you had to have two doors
0:34:00 > 0:34:02in between the kitchen and bathroom.
0:34:02 > 0:34:05That changed a few years ago so you now only need one door.
0:34:05 > 0:34:08Take this all out and expand the kitchen.
0:34:08 > 0:34:10I think that would be a big improvement.
0:34:10 > 0:34:14The bathroom is a bit disappointing. The units are very tired and dated.
0:34:15 > 0:34:19This needs to be improved. Would you move it upstairs?
0:34:19 > 0:34:22For this style of property, I don't think it is worth it.
0:34:25 > 0:34:26All in all, I think it is great.
0:34:32 > 0:34:37But do great things await me on the first floor?
0:34:39 > 0:34:42Upstairs, there are two fairly decent sized
0:34:42 > 0:34:45bedrooms in need of some stripping back and redecorating.
0:34:45 > 0:34:48The one thing that is lacking in this property
0:34:48 > 0:34:51is central heating which I would definitely install.
0:34:55 > 0:34:59The view from the back bedroom looks out over the Lake District,
0:34:59 > 0:35:01which is quite stunning.
0:35:01 > 0:35:03DOOR SQUEAKS LOUDLY
0:35:03 > 0:35:06Ooh, squeaky door! But at the rear of the property,
0:35:06 > 0:35:10this really interesting little sort of porch/lean-to area,
0:35:10 > 0:35:13which leads into a courtyard, and out here,
0:35:13 > 0:35:17the extension, which houses the kitchen and the bathroom.
0:35:17 > 0:35:19Now, if you notice, that's got a flat roof.
0:35:19 > 0:35:23Notoriously bad for leaks, so, if I was having this place surveyed,
0:35:23 > 0:35:25or at least if I was looking round, I'd be up
0:35:25 > 0:35:28on the ladders checking what kind of condition that is in,
0:35:28 > 0:35:31because you don't want leaks in that.
0:35:31 > 0:35:33All in all, I'm not seeing much evidence of
0:35:33 > 0:35:36anything going particularly wrong with this place.
0:35:36 > 0:35:40That long passageway to the back gives a real sense of space,
0:35:40 > 0:35:43for what looks like a smallish property from the outside.
0:35:48 > 0:35:51Well, from the front of the property, or when you're inside,
0:35:51 > 0:35:55sometimes you forget quite where you are located in the country.
0:35:55 > 0:35:59Literally step out the back gate here, down that lane
0:35:59 > 0:36:04and you are into the most beautiful lakeland scenery.
0:36:10 > 0:36:14So, in a small village on the edge of the Lake District,
0:36:14 > 0:36:18a two-bedroom property with that very tempting guide price
0:36:18 > 0:36:21of £25,000-£35,000. Was it a good one to go for?
0:36:21 > 0:36:24We asked the auctioneer who sold it what he thought.
0:36:24 > 0:36:29Yeah, I think it's typical of all the surrounding properties in this town.
0:36:29 > 0:36:31It's slightly dated,
0:36:31 > 0:36:35it needs a programme of modernisation to bring it up to today's standards,
0:36:35 > 0:36:37but it's a good-sized property.
0:36:37 > 0:36:40What sort of rental figure could this property earn?
0:36:42 > 0:36:44Once this property's been refurbished,
0:36:44 > 0:36:48it would achieve a rent of £350 per calendar month.
0:36:49 > 0:36:52What does he think it could achieve if sold on?
0:36:52 > 0:36:59Once refurbished, this property would sell for between £45,000-£50,000.
0:37:00 > 0:37:03Well, for a guide price of £25,000-£35,000,
0:37:03 > 0:37:06you might not have expected much, but you know what,
0:37:06 > 0:37:08I reckon this place stacks up pretty well.
0:37:08 > 0:37:11Let's see who agreed when it went under the hammer.
0:37:11 > 0:37:14£30,000 for this.
0:37:15 > 0:37:1725?
0:37:17 > 0:37:2225, I've got, stood to the rear. At £25,000, we're away.
0:37:22 > 0:37:26I'll take it in ones, if I may. £25,000, I'm bid.
0:37:26 > 0:37:32At 26, anyone? 26, I've got. 27. 28. 29.
0:37:32 > 0:37:34And 30?
0:37:34 > 0:37:38Thinking about it at 30? £29,000 to the rear.
0:37:38 > 0:37:41At 29,000, are we done?
0:37:41 > 0:37:44£29,000, then, first time.
0:37:44 > 0:37:48At £29,000, second time. Third and final time, then.
0:37:48 > 0:37:50All out? All done?
0:37:50 > 0:37:53With his successful bid of £29,000,
0:37:53 > 0:37:57it was a rather anxious-looking Nick who became the new owner.
0:37:57 > 0:37:59# So anxious! It makes me anxious... #
0:37:59 > 0:38:02He's a self-employed computer engineer who lives in London.
0:38:02 > 0:38:05'I met up with him at the property to find out what prompted him
0:38:05 > 0:38:08'to buy a terraced house in Cumbria.'
0:38:08 > 0:38:12- Congratulations.- Thank you. - You got quite a lot of house for quite a little money.
0:38:12 > 0:38:15Yeah. I was... I didn't actually come in beforehand
0:38:15 > 0:38:17and I've been pleased to see what I got there.
0:38:17 > 0:38:22- You didn't come in beforehand? - I didn't, no, I wasn't all that well organised, to be honest.- Right.
0:38:22 > 0:38:25But in the end of the day, it seems to have worked out all right.
0:38:25 > 0:38:27- Hmm?- Mm-hm.
0:38:27 > 0:38:29- You know that's naughty, don't you?- I do.
0:38:29 > 0:38:32I'm very naughty. LAUGHTER
0:38:32 > 0:38:35- Cos it could've been a complete disaster!- Well, when I bid on it,
0:38:35 > 0:38:40I was imagining it being in quite a state, with blown plasterwork
0:38:40 > 0:38:43and rotten floors and probably needing a new kitchen and bathroom.
0:38:43 > 0:38:47As it stands, it's not too bad, it's not any worse than I'd have imagined,
0:38:47 > 0:38:51but that's really luck, I think. I had a look through the window, looked from the outside,
0:38:51 > 0:38:54so I had some sort of idea, but I hadn't been inside.
0:38:54 > 0:38:56How was the auction?
0:38:56 > 0:39:00I'd never actually been to a house auction before.
0:39:00 > 0:39:04Er, it was rather nerve-wracking. Afterwards,
0:39:04 > 0:39:07I had to fill out these forms when my hands were just shaking so much,
0:39:07 > 0:39:09I'm sure that nobody could understand what I'd written.
0:39:09 > 0:39:14- Partly because you didn't really expect that you were going to be buying anything?- I didn't, no.
0:39:14 > 0:39:17I went up to the auction with the intention
0:39:17 > 0:39:21of not buying anything, so I just felt that urge to buy it.
0:39:21 > 0:39:25# I got the urge... Woo!
0:39:25 > 0:39:28# ..to love you! #
0:39:28 > 0:39:33'So Nick just went for it, but he didn't follow one of my golden rules.'
0:39:33 > 0:39:37- You'd read the legal pack, of course?- Oh, yes, yes.- Really?- I did.
0:39:37 > 0:39:41- Really?- Just before the auction, I did, yes.
0:39:41 > 0:39:43- For how long?- Five minutes. - Oh, right. OK, then.
0:39:43 > 0:39:47- LAUGHTER - That'll be all right, then.
0:39:47 > 0:39:51- You know you've been a little bit rash, don't you?- I do. I do. Just a little bit.
0:39:51 > 0:39:54Tell me more about you. What do you do when you're not doing this?
0:39:54 > 0:39:57I'm a computer engineer. Some time ago,
0:39:57 > 0:40:00I was into plumbing and heating, I was a plumber,
0:40:00 > 0:40:04- but then I moved into computers about 20-25 years ago.- Wow!
0:40:04 > 0:40:08I've been into that, you know, and I've been enjoying
0:40:08 > 0:40:12that sort of work, with computers, um, but I just thought that
0:40:12 > 0:40:16I'd like to really, you know, have a property up here and rent it out.
0:40:16 > 0:40:18I thought that might be a nice little investment.
0:40:18 > 0:40:21# Computer world... #
0:40:21 > 0:40:25Plumber-turned-computer expert Nick lives in London,
0:40:25 > 0:40:28but has friends in the area who he visits regularly.
0:40:28 > 0:40:32When he saw that the property prices locally were within his budget,
0:40:32 > 0:40:35he chose this facility for his first development project.
0:40:35 > 0:40:39'There are a few things to be sorted out to turn this place around.
0:40:39 > 0:40:42'They include the obviously needed redecoration
0:40:42 > 0:40:46'and updating of the facilities, including installing central heating.'
0:40:46 > 0:40:49So all that work's going to be done by you?
0:40:49 > 0:40:50Yeah, the house I have in London,
0:40:50 > 0:40:53I've pretty much done all the work in there.
0:40:53 > 0:40:56When I was involved in plumbing, say 25-30 years ago,
0:40:56 > 0:41:00I also had done some building with my brother's building company,
0:41:00 > 0:41:02so I've had some experience there too.
0:41:02 > 0:41:04In terms of the budget for all the work?
0:41:05 > 0:41:08I'm estimating it up to £5,000.
0:41:08 > 0:41:12That's with heating, possibly replacing the bathroom,
0:41:12 > 0:41:14smartening the kitchen up.
0:41:14 > 0:41:19- Not replacing the kitchen? Just smartening it?- I'll see how it goes.
0:41:19 > 0:41:21I'm in two minds about that, so I might replace it,
0:41:21 > 0:41:24I might smarten it, I'll see how well it freshens up
0:41:24 > 0:41:26once it's cleaned and scrubbed.
0:41:26 > 0:41:29If it looks good, then I'll probably keep that
0:41:29 > 0:41:33- and maybe move the units slightly, otherwise I'll replace it.- Right.
0:41:33 > 0:41:37'Nick plans to come up and do the work in three two-week stints,
0:41:37 > 0:41:39'spread over a few months.
0:41:39 > 0:41:41'However, that might change depending on factors
0:41:41 > 0:41:43'such as whether he needs to replace the kitchen.'
0:41:43 > 0:41:48- That'll obviously affect the budget and the timescales.- It does, yes.
0:41:48 > 0:41:50But hopefully not too greatly.
0:41:50 > 0:41:55If I'm starting at eight o'clock in the morning and work around into,
0:41:55 > 0:41:59you know, mid-evening, then I can get a good number of hours in a day
0:41:59 > 0:42:01and get the work done in reasonable time.
0:42:01 > 0:42:06Talk me through the numbers in terms of what you're hoping it might achieve when you rent it out.
0:42:07 > 0:42:14Houses in this area generally £300-£350 per calendar month.
0:42:14 > 0:42:17That is a sort of reasonable estimate from other houses that I've seen.
0:42:17 > 0:42:22So that's...the sort of target I'm looking for.
0:42:22 > 0:42:27'So rental seems the best way to go, but there's a fair amount
0:42:27 > 0:42:31'of work to do, which will require Nick to juggle his schedule.'
0:42:31 > 0:42:35- But carrying on your day job all this time?- I will be, yes.
0:42:35 > 0:42:37I've been arranging things.
0:42:37 > 0:42:41I can bring a computer up with me, I can work from around here
0:42:41 > 0:42:45and just keep things ticking over whilst doing some work here.
0:42:45 > 0:42:49It gives me a change of scenery, a change of environment, you know,
0:42:49 > 0:42:52I'll get to see my friends who are around here
0:42:52 > 0:42:55and then go to London, so I'll get a sort of change.
0:42:55 > 0:43:00- Cumbria and London - a nice little contrast.- Yeah, definitely.
0:43:00 > 0:43:03Listen, congratulations. We look forward to seeing how you get on.
0:43:03 > 0:43:05Great, thank you.
0:43:05 > 0:43:08Well, Nick broke all the rules buying this place.
0:43:08 > 0:43:10He didn't look at it beforehand.
0:43:10 > 0:43:12I don't really think he read the legal pack.
0:43:12 > 0:43:15Still, he was lucky on this occasion
0:43:15 > 0:43:17and I think he'll end up making some money here.
0:43:17 > 0:43:20You can find out how he gets on later in the show.
0:43:23 > 0:43:27They say time is a great healer, but it can also be the enemy
0:43:27 > 0:43:29if you're up against a deadline.
0:43:29 > 0:43:32So what has happened to those properties?
0:43:32 > 0:43:35Ha-ha! The moment of truth! Let's find out.
0:43:35 > 0:43:40Back now to Rainham in Kent, where, earlier in the programme,
0:43:40 > 0:43:45Paul bought this 1930s semi for 170,000. He's a keen motorcyclist
0:43:45 > 0:43:49and Hells Angel who lives nearby in Gillingham.
0:43:49 > 0:43:53# Motorcycle emptiness... #
0:43:55 > 0:44:00The house had serious subsidence and needed a lot of work.
0:44:00 > 0:44:02But with the help of his son, Gavin, Paul was going
0:44:02 > 0:44:07to renovate the house and make it home for himself and his wife Bev.
0:44:09 > 0:44:12Paul used to run a small building company,
0:44:12 > 0:44:16so he's got lots of contacts and he had big plans for the place.
0:44:18 > 0:44:20Obviously, I'm going to fix the drains,
0:44:20 > 0:44:23but as far as the subsidence goes, I'm going to underpin the corner,
0:44:23 > 0:44:27but I'd like to put an extension out the back. When we're out the back and putting the concrete
0:44:27 > 0:44:31and foundations in for that, obviously, we'd be underpinning the back half as well.
0:44:31 > 0:44:34So when do you guys see yourselves moving in?
0:44:34 > 0:44:36If I get stuck right into the work,
0:44:36 > 0:44:39I think it's going to take four or five months.
0:44:39 > 0:44:42Well, there have been some delays,
0:44:42 > 0:44:46because it's now one year and nine months later.
0:44:48 > 0:44:50Replacement windows have been installed,
0:44:50 > 0:44:54plus a new window up in the loft conversion.
0:44:55 > 0:45:00This is where Paul has created their new bedroom.
0:45:02 > 0:45:04Complete with en-suite bathroom.
0:45:06 > 0:45:09The loft isn't the only addition to the property.
0:45:09 > 0:45:14On the ground floor, an extension runs the width of the house,
0:45:14 > 0:45:17where a new kitchen is waiting to be installed.
0:45:18 > 0:45:22This is the kitchen here, which is in the new extension as such.
0:45:22 > 0:45:26Tried to expand it and make it as big a kitchen as we can,
0:45:26 > 0:45:30cos that hole into the old kitchen used to be the kitchen window,
0:45:30 > 0:45:32but now, that's the big doorway in,
0:45:32 > 0:45:35so it's a small part, like a utility room, washing machine, everything.
0:45:35 > 0:45:39I think the kitchen'll look very nice when it's done, because we've got
0:45:39 > 0:45:42some really nice units all being made, with the oak tops and probably
0:45:42 > 0:45:46oak skirting boards and everything like that, so it'll look very nice indeed.
0:45:46 > 0:45:48And we've got a breakfast bar being fitted in here,
0:45:48 > 0:45:52which has the same oak top on it and everything.
0:45:52 > 0:45:55And that big hole there used to be the French windows,
0:45:55 > 0:45:59which goes into the old sitting room dining room at the back there,
0:45:59 > 0:46:02but we've knocked it through, so it goes right through
0:46:02 > 0:46:06into the front room now, so it's a nice, big long room all the way through.
0:46:09 > 0:46:11Removing the dividing wall between the two rooms
0:46:11 > 0:46:15and creating the through-lounge was straightforward.
0:46:15 > 0:46:18The hold-up came when Paul's original plan for an extension
0:46:18 > 0:46:22at the side was turned down on several occasions.
0:46:22 > 0:46:26So, during the long delays, he underpinned the property,
0:46:26 > 0:46:29which cured the subsidence problems.
0:46:31 > 0:46:34We were going to do it at the same time as the extension,
0:46:34 > 0:46:36because we were going to get a sideways extension,
0:46:36 > 0:46:40but that was refused, so because the extension had to go out the back,
0:46:40 > 0:46:42we'd already done the underpinning by the time
0:46:42 > 0:46:45we put the extension out the back, or we wouldn't have bothered,
0:46:45 > 0:46:48because the extension out the back meant underpinning wasn't necessary
0:46:48 > 0:46:51and it would've all been done at the same time.
0:46:51 > 0:46:53So, time and money
0:46:53 > 0:46:56went down the same drain that had caused the subsidence.
0:46:56 > 0:47:01Upstairs, work on the three bedrooms is progressing well.
0:47:07 > 0:47:12The house now has central heating and has been rewired and replumbed.
0:47:16 > 0:47:19To retain some of the character,
0:47:19 > 0:47:22Paul's keeping the original doors and some of the fireplaces.
0:47:22 > 0:47:27The door from the hallway to the former kitchen has been blocked off
0:47:27 > 0:47:30and a new toilet is being installed under the stairs.
0:47:30 > 0:47:34Paul's worked on the house almost every day.
0:47:34 > 0:47:37He's brought in his building contacts
0:47:37 > 0:47:40and passed on tips to his son Gavin.
0:47:40 > 0:47:42It's been really good working with Gavin over all this.
0:47:42 > 0:47:46Gavin's one of the people doing the underpinning work with me, which is great.
0:47:46 > 0:47:50We had to dig down nearly 2 metres and then dig under the house.
0:47:50 > 0:47:51Yeah, it was good fun, though,
0:47:51 > 0:47:55you know, getting underneath the house, filling it up with concrete.
0:47:55 > 0:47:58A lot of hard work, but it was good, good fun.
0:47:58 > 0:48:01'We make a good team. We always have a laugh
0:48:01 > 0:48:04'and who do I know better than my dad to be working with?
0:48:04 > 0:48:06'Yeah, it's brilliant. Hopefully, in the future,
0:48:06 > 0:48:09'I can get a place and he can help me do it up.'
0:48:09 > 0:48:13Paul has clearly done a lot of work on the house. He purchased it
0:48:13 > 0:48:17for 170,000 and estimates renovation costs will be around 70,000,
0:48:17 > 0:48:22giving him an overall outlay of £240,000.
0:48:23 > 0:48:29We asked two local estate agents for their views on this 1930s semi,
0:48:29 > 0:48:31with its new loft conversion and extension.
0:48:31 > 0:48:33I like the rear extension, because
0:48:33 > 0:48:37the original kitchen is so small, you can't do very much with it.
0:48:37 > 0:48:40So now, it's going to be lovely, you've got a lovely
0:48:40 > 0:48:42through-lounge dining room and a really nice kitchen
0:48:42 > 0:48:45with a utility room, so it's going to be great.
0:48:45 > 0:48:49The loft conversion is an excellent touch, adds the extra space.
0:48:49 > 0:48:50The master bedroom and en-suite.
0:48:50 > 0:48:55I like the standard of work that's been done. Up in the top bedroom,
0:48:55 > 0:48:58the tile are lovely in the en-suite. Very, very nice.
0:48:58 > 0:49:02The experts reckon it could be let out for between 950
0:49:02 > 0:49:07and 1,100 per month, but what do they think about a resale value?
0:49:07 > 0:49:11Will it be more than Paul's overall spend of 240,000?
0:49:11 > 0:49:15Once fully finished, I would expect to achieve
0:49:15 > 0:49:19something in the region of £250,000-£275,000.
0:49:19 > 0:49:24I would expect to achieve in the region of £275,000 for the property.
0:49:24 > 0:49:28That range of valuations would generate a gross profit
0:49:28 > 0:49:33of between 10,000 and 35,000 if Paul was to sell.
0:49:33 > 0:49:35- It sounds very good indeed. - Yeah, excellent.
0:49:35 > 0:49:40Considering what I paid for the property and how much I spent on it.
0:49:40 > 0:49:43Yeah, I think it'd be a shame to let it go after all the work we've put into it now.
0:49:43 > 0:49:45How magnificent it's going to turn out at the very end.
0:49:45 > 0:49:50The project's taken Paul over a year and a half
0:49:50 > 0:49:53and is still ongoing, so has it all been worth it?
0:49:53 > 0:49:57- I think so, yes. It's been very good. - Yeah, definitely.
0:49:57 > 0:50:00As long as my dad's happy, that's all that matters.
0:50:02 > 0:50:05Back now to Frizington in Cumbria,
0:50:05 > 0:50:07where this two-bedroomed mid-terrace property
0:50:07 > 0:50:10sold for £29,000 at auction.
0:50:10 > 0:50:13It was snapped up by computer engineer Nick.
0:50:13 > 0:50:15# Till I find the righteous one!
0:50:15 > 0:50:17# Computer blue! #
0:50:17 > 0:50:19He lives in London,
0:50:19 > 0:50:23but wanted to invest in cheaper property outside the city.
0:50:23 > 0:50:27I've been enjoying that sort of work with computers, um,
0:50:27 > 0:50:29but I just thought that I'd like to, really,
0:50:29 > 0:50:32you know, have a property up here and rent it out.
0:50:32 > 0:50:34I thought that might be a nice little investment.
0:50:34 > 0:50:37This property was a great opportunity for Nick.
0:50:37 > 0:50:40Inside, the place desperately needed modernising,
0:50:40 > 0:50:43but there were no nasty surprises for him
0:50:43 > 0:50:45when he eventually did see inside the property.
0:50:46 > 0:50:50But did the renovation work go just as smoothly?
0:50:50 > 0:50:53We caught up with him six months later to find out.
0:50:56 > 0:51:00Well, it certainly looks like he's given the place an overhaul.
0:51:00 > 0:51:03Every room has been redecorated and freshened up.
0:51:03 > 0:51:08New carpets and replastering have really brightened this property up.
0:51:09 > 0:51:13But he hasn't stopped there. He's completely renovated the kitchen
0:51:13 > 0:51:16and installed brand-new fixtures and fittings.
0:51:17 > 0:51:20The bathroom's had a complete overhaul as well.
0:51:22 > 0:51:25I've ripped the kitchen out, ripped the bathroom out.
0:51:25 > 0:51:28It freshens it up, makes it look more modern,
0:51:28 > 0:51:33so it brings it up to date and makes it liveable by modern standards.
0:51:33 > 0:51:37And Nick's taken my advice and got rid of that wasted space
0:51:37 > 0:51:39between the kitchen and the bathroom.
0:51:39 > 0:51:42# When the walls came tumbling down
0:51:42 > 0:51:46# When the walls came tumbling down... #
0:51:46 > 0:51:49So what made him do all this extra work?
0:51:49 > 0:51:52Originally, I was thinking of just not doing very much in the house.
0:51:52 > 0:51:55I suppose, as I got into the job, I decided just to do
0:51:55 > 0:52:00that bit more and that bit more and replaced the kitchen and bathroom
0:52:00 > 0:52:04and I thought it'd be nice to have a bigger kitchen and I think that's really important in a house
0:52:04 > 0:52:08and, if I'm going to put in the shower and a boiler in the bathroom,
0:52:08 > 0:52:12then I thought I might as well go ahead and replace that too.
0:52:12 > 0:52:14But the renovation wasn't all plain sailing.
0:52:14 > 0:52:19There was plumbing of a different kind to sort out in the living room.
0:52:19 > 0:52:22The living room here was rather damp. There was a certain amount of water
0:52:22 > 0:52:26coming up through the carpet from the flagstone flooring underneath.
0:52:26 > 0:52:29So the subsoil here has been
0:52:29 > 0:52:32saturated by a hole from the drain coming through.
0:52:32 > 0:52:36The drain itself has been blocked, so any rainwater has been
0:52:36 > 0:52:40forming a pool and running from the hole into the subsoil of the house.
0:52:40 > 0:52:44Now that's been fixed, it's had a chance to dry off
0:52:44 > 0:52:47and it's now a clean and fresh and dry house.
0:52:47 > 0:52:51With all the extra work in the living room, kitchen and bathroom,
0:52:51 > 0:52:55surely that must have drastically affected Nick's original budget?
0:52:57 > 0:53:02My initial budget was £5,000, which I considered on the generous side.
0:53:02 > 0:53:05I think the amount I spent is around £7,000,
0:53:05 > 0:53:08which I think is pretty good going,
0:53:08 > 0:53:11given that it's got a new kitchen and bathroom as well.
0:53:11 > 0:53:16So that over-estimated original budget cushioned the blow,
0:53:16 > 0:53:18but what about the timescale?
0:53:18 > 0:53:22Probably spent about one day in three to one day in four
0:53:22 > 0:53:25actually working on the property. I've been up here for six months,
0:53:25 > 0:53:27so it's a bit like putting
0:53:27 > 0:53:32probably a month and a half's full work into the property.
0:53:32 > 0:53:35Over the last six months, Nick's been living between here
0:53:35 > 0:53:39and London, working on the property in stints between his computing job
0:53:39 > 0:53:43and, as if that didn't keep him busy enough, he's also picked up
0:53:43 > 0:53:46two more Cumbrian properties while he's been there,
0:53:46 > 0:53:48so what's his next step?
0:53:48 > 0:53:51I may either let it out or sell it,
0:53:51 > 0:53:55depending on what the rental or sale relative value is.
0:53:55 > 0:53:58Let's find out what those values could be.
0:53:58 > 0:54:01We've asked along two local property experts
0:54:01 > 0:54:04to hear their thoughts.
0:54:04 > 0:54:09'I think it's been done to a good standard generally speaking and it's'
0:54:09 > 0:54:12quite tidy and neutral. The kitchen and the bathroom have been replaced,
0:54:12 > 0:54:15which is a good thing and it benefits from lovely views
0:54:15 > 0:54:18of the Western Lake District Fells, which is also a bonus.
0:54:18 > 0:54:20I think the house is done up to a very high standard.
0:54:20 > 0:54:24It has a good kitchen and bathroom and is a good first-time buyer home
0:54:24 > 0:54:27and he's done it up properly throughout.
0:54:27 > 0:54:32I think that the bathroom is particularly good in terms of size
0:54:32 > 0:54:34and, from the kitchen's point of view,
0:54:34 > 0:54:38it's got plenty of space for all relevant appliances.
0:54:38 > 0:54:40So the work seems to be getting the thumbs up.
0:54:40 > 0:54:43In its current condition, what could it rent for,
0:54:43 > 0:54:45should Nick decide to let it out?
0:54:45 > 0:54:48If I was to rent the property out today,
0:54:48 > 0:54:52I would expect to achieve £350 per calendar month.
0:54:52 > 0:54:57I think, in the current rental market, the property could achieve £350 per calendar month.
0:54:57 > 0:55:00That would be a nice income and, for the investment that I've made
0:55:00 > 0:55:03in terms of the money refurbishing the house
0:55:03 > 0:55:06and the original purchase of the house,
0:55:06 > 0:55:09that is a good rate of return, so I'm happy with that.
0:55:09 > 0:55:14Nick bought it for £29,000 and has spent £7,000 or more on it,
0:55:14 > 0:55:18so will its estimated resale value now be more than
0:55:18 > 0:55:21his total outlay of around £36,000?
0:55:21 > 0:55:25The property could go on the residential sales market for £60,000.
0:55:25 > 0:55:30On the resale market today, I would expect to achieve £60,000.
0:55:30 > 0:55:35Wow! That's a surprise. That's, er... That's a nice surprise.
0:55:35 > 0:55:40Um, so that would be, what, 23...
0:55:40 > 0:55:44£24,000 on top of the money spent,
0:55:44 > 0:55:47so yeah, that's brilliant. HE LAUGHS
0:55:47 > 0:55:49# I'm over the moon!
0:55:49 > 0:55:52# Doing my thing Doing my thing... #
0:55:52 > 0:55:54That IS brilliant.
0:55:54 > 0:55:58A potential pre-tax profit of £24,000
0:55:58 > 0:56:02before the usual selling expenses in just six months
0:56:02 > 0:56:04is not too shabby at all.
0:56:04 > 0:56:07But will this news affect his plans here?
0:56:07 > 0:56:11At £60,000, I'd be tempted to sell and buy another one.
0:56:11 > 0:56:14# I'm over the moon... #
0:56:14 > 0:56:20Another one?! So would he ever consider concentrating on his Cumbrian portfolio full time?
0:56:22 > 0:56:25Moving up here from London is something that I had thought about
0:56:25 > 0:56:28from time to time and friends have regularly brought this up
0:56:28 > 0:56:30and presumed that I would be, I believe,
0:56:30 > 0:56:36but I haven't made a decision to do that, although it's a possibility.
0:56:38 > 0:56:41Well, that's it for today. We'll be back with more action
0:56:41 > 0:56:43from auction rooms all over the country next time.
0:56:43 > 0:56:47- So join us then for more Homes Under The Hammer.- Goodbye.- Goodbye.
0:56:55 > 0:56:59Subtitles by Red Bee Media Ltd