0:00:02 > 0:00:06If you fancy going to auction, now is the time to take the plunge.
0:00:06 > 0:00:09There is just so much variety in those glossy catalogues.
0:00:09 > 0:00:13Every month, thousands of lots are offered for sale all around the country.
0:00:13 > 0:00:18So why not get down to your local auction and check out the action?
0:00:44 > 0:00:50The lure of the auction is very strong, but what should you spend your hard-earned money on?
0:00:50 > 0:00:54You might have your heart set on one place, then somebody bids on it.
0:00:54 > 0:00:59It's best to research several properties and keep your options open.
0:00:59 > 0:01:03Let's see what our buyers set their hearts on on today's programme.
0:01:04 > 0:01:10'We revisit a property in Derbyshire we saw in 2008, when it had a serious problem.'
0:01:10 > 0:01:13The whole of this rear wall is actually bowing.
0:01:14 > 0:01:18'In Kent, this house may not be exciting to look at,
0:01:18 > 0:01:20'but the view certainly is.'
0:01:20 > 0:01:23I would never tire of looking out of that window.
0:01:24 > 0:01:30'And in Greater Manchester, this four-bedroom property has an eye-catching feature.'
0:01:30 > 0:01:33That is a fireplace and a half!
0:01:35 > 0:01:38'All these properties have been sold at auction.
0:01:38 > 0:01:41'We'll find out who bought them and what they paid for them
0:01:41 > 0:01:44- 'when they went under the hammer.' - Your property.
0:01:48 > 0:01:52'I'm in Belper, an attractive market town eight miles north of Derby,
0:01:52 > 0:01:56'to return to a property I first visited in 2008.
0:01:56 > 0:02:01'From the outside, this two-bedroom stone semi-detached cottage
0:02:01 > 0:02:05'that was guided at £85,000 looked an attractive proposition.
0:02:05 > 0:02:09'But as we all know, looks can be deceptive.'
0:02:10 > 0:02:15You never quite know what you're going to find in these places.
0:02:15 > 0:02:19- CHUCKLES - Well, "a mess", initial thought.
0:02:19 > 0:02:22But anyway, that's a bit weird.
0:02:22 > 0:02:24Bit of wood in the wall.
0:02:24 > 0:02:29Once you start stripping off old wallpaper, you find all sorts of things.
0:02:29 > 0:02:32You find doorways and bits of wood, very unusual.
0:02:32 > 0:02:35But not a bad size front room, and I like this.
0:02:35 > 0:02:39Big old fireplace. It's huge, compared to the size of the room.
0:02:39 > 0:02:42What a lovely feature that is. Not a bad start.
0:02:42 > 0:02:45Through to... Ooh, blimey! The kitchen!
0:02:45 > 0:02:51- LAUGHS - It's sort of a kitchen. It's got a sink! A good start!
0:02:51 > 0:02:54Little utility room area there. Again, not a bad size space.
0:02:54 > 0:02:58Love the fact that there's another fireplace there.
0:02:58 > 0:03:02But somebody's obviously stripped off a lot of the plaster
0:03:02 > 0:03:05and that has revealed something very nasty.
0:03:05 > 0:03:09I don't know if you can see this.
0:03:09 > 0:03:13The whole of this rear wall is actually bowing.
0:03:14 > 0:03:18Oh, my goodness! That is very serious indeed.
0:03:18 > 0:03:23'The best way to check HOW serious is to take a look from the outside.'
0:03:23 > 0:03:25If it wasn't obvious from inside,
0:03:25 > 0:03:30come out the back and you can really see the state of this wall.
0:03:30 > 0:03:33Look how bowed that is. And here's the reason.
0:03:33 > 0:03:36See the lintel above the door?
0:03:36 > 0:03:40That's sagging and caused the whole of that wall there to come out.
0:03:40 > 0:03:44Not good news. I reckon that's going to have to come down. So, bad news.
0:03:44 > 0:03:48Good news, though, the garden, 20 or 30 feet all the way back.
0:03:48 > 0:03:50A nice additional feature.
0:03:50 > 0:03:54I reckon before long, it's going to be filled with scaffolding.
0:03:55 > 0:03:59'Before we go upstairs, it's worth checking out the garage.
0:04:00 > 0:04:03'It needs some tender loving care, but it's a useful space
0:04:03 > 0:04:06'with its own WC.'
0:04:09 > 0:04:14Well, it's certainly in a bit of decorative disorder up here.
0:04:14 > 0:04:18But good sized rooms. Rear bedroom, good sized double.
0:04:18 > 0:04:21Bathroom, well, in need of a bit of refurbishment!
0:04:21 > 0:04:25But what is interesting, look at the size of that opening into the loft.
0:04:25 > 0:04:29I reckon that could be VERY good news. Worth investigating.
0:04:29 > 0:04:31But kind of narrow corridors,
0:04:31 > 0:04:35leading to another good sized double bedroom here at the front.
0:04:35 > 0:04:37But look at this!
0:04:37 > 0:04:41That is an opening into the next door neighbour's property.
0:04:41 > 0:04:44I reckon, at some stage, these two properties were joined.
0:04:44 > 0:04:46Interesting bit of history.
0:04:47 > 0:04:51'The separation into two has left some rather small spaces,
0:04:51 > 0:04:53'particularly with the bathroom.
0:04:53 > 0:04:58'Excitingly, though, that loft space is a good size.
0:04:58 > 0:05:04'There's no doubting the potential to make this cottage bigger and better.'
0:05:05 > 0:05:08Well, it's a cute cottage in a very desirable area,
0:05:08 > 0:05:12but don't underestimate the work involved in putting this right.
0:05:12 > 0:05:15That back wall is going to have to come down.
0:05:15 > 0:05:19Not a project for the faint-hearted. Let's see who bought it at auction.
0:05:22 > 0:05:25Lot 40. What must I say for this?
0:05:25 > 0:05:30Guide is 85. 85,000? 85 is bid at the back, thank you.
0:05:30 > 0:05:33At £85,000. 86? 86 is bid.
0:05:33 > 0:05:36At 86. 87.
0:05:36 > 0:05:3887,000. 88?
0:05:38 > 0:05:4188. 89? 89,000.
0:05:41 > 0:05:4390 now? £90,000?
0:05:43 > 0:05:47At 89,000... 90, thank you very much. At 90.
0:05:47 > 0:05:50At 90,000. 91.
0:05:50 > 0:05:5391. 92 is bid. 92. 93.
0:05:53 > 0:05:5894. 94 on that side. 95? 94 and a half, I don't mind.
0:05:58 > 0:06:0295? 95 is bid. And a half.
0:06:02 > 0:06:0695 and a half. 96. And a half. 97.
0:06:06 > 0:06:0897,500?
0:06:08 > 0:06:11£97,000 on my left.
0:06:11 > 0:06:16500? £97,000. It's going to be sold, ladies and gentlemen.
0:06:16 > 0:06:18At £97,000, going once.
0:06:18 > 0:06:21Twice. Third and last opportunity.
0:06:21 > 0:06:24And a half. 98?
0:06:24 > 0:06:2898. Try me again, wherever you are.
0:06:28 > 0:06:3198 and a half.
0:06:31 > 0:06:3399? 99. Wave at me again.
0:06:33 > 0:06:37Oh, and a half. 99 and a half. 100,000.
0:06:37 > 0:06:41Stick with it. You'll be OK at the end of the day. £100,000.
0:06:41 > 0:06:46500 again? No? Shakes the head. £100,000, then, once.
0:06:46 > 0:06:49Twice. Third and last time. We're selling at £100,000.
0:06:49 > 0:06:51Sold at 100,000. Thank you.
0:06:53 > 0:06:57'So, for £100,000, the successful bidder for the Belper cottage
0:06:57 > 0:07:01'was Wendy, who runs a family property business.
0:07:01 > 0:07:05'Along with her son, Duncan, a software salesman who's moved back home,
0:07:05 > 0:07:09'they plan to renovate the cottage as a new home for him.
0:07:09 > 0:07:13'I met with them at the cottage to find out more.'
0:07:13 > 0:07:17Why did you buy it? I think it's got something to do with Duncan here.
0:07:17 > 0:07:21Yes. Duncan was talking about moving out and renting a place.
0:07:21 > 0:07:27So we thought we might as well get the rent off him, so we bought a place for him to live in.
0:07:27 > 0:07:31- Explain a bit more, Duncan.- I had to move back to my parents' last year.
0:07:31 > 0:07:34I think I've been getting under their feet a bit,
0:07:34 > 0:07:37so it's nice for me to get somewhere of my own.
0:07:37 > 0:07:39I'm very fortunate to have them to help me out.
0:07:39 > 0:07:44I'm going to get some friends move in and help to pay the rent with me.
0:07:44 > 0:07:50- You're going to sub-let it out? - Yes. Originally, I was just going to make it two bedrooms.
0:07:50 > 0:07:53After seeing the loft, if I put a third bedroom up there,
0:07:53 > 0:07:56there's a possibility of having two tenants move in with me.
0:07:56 > 0:08:00One of them being a blacksmith who wants to use part of the garage
0:08:00 > 0:08:04- to do some of his welding and blacksmithing.- Oh, wow!
0:08:04 > 0:08:07- Not sure what the neighbours will think!- We'll see!
0:08:07 > 0:08:11- What did you think when you walked in?- Probably what you thought.
0:08:11 > 0:08:14How the hell is anyone going to live here?
0:08:14 > 0:08:18It was, er...interesting. My biggest worry was the back of the house.
0:08:18 > 0:08:22- The bowing, you mean?- Yeah, but it should be fixed fairly easily.
0:08:22 > 0:08:25- So that's one of the first jobs, presumably.- Yeah.
0:08:26 > 0:08:30'Since Duncan's going to be doing most of the project managing,
0:08:30 > 0:08:33'I wanted to know what his plans were.'
0:08:33 > 0:08:40- So, Duncan, somebody's obviously started doing a bit of the renovation works.- Yeah.
0:08:40 > 0:08:44Whoever bought it previously decided they wanted to start.
0:08:44 > 0:08:47I think maybe they found the fact of the back wall bowing
0:08:47 > 0:08:51to be too much of a job for them, so decided to sell it on.
0:08:51 > 0:08:55- Talk me through what you'll do up here.- We'll keep this as a bedroom.
0:08:55 > 0:09:00But I think I'm going to move the stairs over into the corner.
0:09:00 > 0:09:05- What about the stairs for the attic? - The stairs I'd like to fit in where the airing cupboard is.
0:09:05 > 0:09:07Have a master bedroom with en suite.
0:09:07 > 0:09:11It's quite a big project. Have you had any experience before?
0:09:11 > 0:09:14Well, previously, I was an estate agent.
0:09:14 > 0:09:18I've had quite a lot of dealings with property, and with Mum and Dad's properties as well.
0:09:18 > 0:09:22- I like to help them out when I can. - Quite a major job for your first...
0:09:22 > 0:09:25Huge! Yeah. Huge for my first one.
0:09:25 > 0:09:30# Looking back it's so bizarre, it runs in the family
0:09:31 > 0:09:33# All the things we are... #
0:09:33 > 0:09:37- Any idea of time scales? - We're hoping about three months.
0:09:37 > 0:09:40Reckoning about 20,000 for the building work.
0:09:40 > 0:09:45And then, hopefully, no more than about 15 for finishing off.
0:09:46 > 0:09:49'Well, that was back in 2008.
0:09:49 > 0:09:52'When we first returned, five months later,
0:09:52 > 0:09:55'the bowing wall was having a major impact,
0:09:55 > 0:09:59'not just on the renovation, but the structure of the cottage.'
0:09:59 > 0:10:01The main things that have happened,
0:10:01 > 0:10:05we've had to put a lot of internal and external scaffolding
0:10:05 > 0:10:10around the property to keep the house up while we take the back wall down.
0:10:10 > 0:10:15I was a bit shocked this morning when I saw all this scaffolding.
0:10:15 > 0:10:17It's rather major.
0:10:17 > 0:10:21MUSIC: "Steel Bars" by Michael Bolton
0:10:31 > 0:10:34The neighbour's house has the possibility to come down as well
0:10:34 > 0:10:38if the house was to fall down, so we had to put structural scaffolding up
0:10:38 > 0:10:42to keep their property up when ours is being taken down.
0:10:43 > 0:10:48'So, to keep the house standing, scaffolding and acrow props have gone up,
0:10:48 > 0:10:52'as has the budget, from £35,000 to £50,000.
0:10:52 > 0:10:55'With little more than the shell remaining,
0:10:55 > 0:10:58'this was now a back-to-basics rebuild.
0:10:58 > 0:11:01'Join us later to see how Wendy and Duncan have succeeded,
0:11:01 > 0:11:04'not only in putting the cottage together again,
0:11:04 > 0:11:09'but in creating a beautiful new home.'
0:11:13 > 0:11:17'This is the Kent village of Wrotham, between Sevenoaks and Maidstone.
0:11:17 > 0:11:21'It's close to three motorways, has rail links, and is in countryside
0:11:21 > 0:11:26'officially designated as an area of outstanding beauty.
0:11:26 > 0:11:30'This is a prize spot to live, so house prices in this postcode
0:11:30 > 0:11:33'push well above the national average.'
0:11:33 > 0:11:38This isn't the type of location you need to worry too much about stamp duty thresholds,
0:11:38 > 0:11:43about marketing over that £250,000 and putting people off.
0:11:43 > 0:11:48You always need to be careful about your spend, the sky is never really the limit,
0:11:48 > 0:11:52but here you can afford to up that budget a little bit higher.
0:11:52 > 0:11:56With that in mind, the guide price of this three-bedroomed house,
0:11:56 > 0:12:02well it doesn't seem all that bad at £340,000 to £360,000.
0:12:02 > 0:12:07A bit boxy and bland from the outside. Let's hope inside inspires.
0:12:11 > 0:12:16'Its boxy appearance may be due to its former existence as a police house.
0:12:16 > 0:12:20'It comes complete with a police office attached at the side.
0:12:20 > 0:12:24'I think some further investigation is required.'
0:12:25 > 0:12:29Ooh! Interesting! That's where the police office would have been.
0:12:29 > 0:12:32Very welcoming, once you walk through the door.
0:12:32 > 0:12:36Nice and light and bright and spacious. First reception room.
0:12:36 > 0:12:38Again, a really good size.
0:12:38 > 0:12:41A kitchen here, which is a very nice size.
0:12:41 > 0:12:45Although I'm just wondering, walking into the second reception room,
0:12:45 > 0:12:48whether it's worth thinking about taking this wall down.
0:12:48 > 0:12:52At the moment, it's lots of little spaces, but nothing's been done properly.
0:12:52 > 0:12:55It doesn't really seem to flow.
0:12:55 > 0:12:58I can imagine taking down this, having a big table here,
0:12:58 > 0:13:04eating your breakfast and looking out at this amazing view!
0:13:04 > 0:13:08I would never tire of looking out of that window!
0:13:09 > 0:13:12'I don't have any problem with the view outside,
0:13:12 > 0:13:16'but I'm not so keen on the view inside.
0:13:16 > 0:13:19'I think the layout needs a complete rethink.
0:13:19 > 0:13:23'The idea of a large kitchen-diner with, perhaps, a separate lounge
0:13:23 > 0:13:25'really appeals.
0:13:25 > 0:13:29'So, thought needs to be given to the downstairs layout.
0:13:29 > 0:13:33'Upstairs, it's a case of updating and overhauling what's already here.
0:13:33 > 0:13:35'The bedrooms are OK.
0:13:35 > 0:13:40'There are two good-sized doubles and a smaller single.
0:13:40 > 0:13:43'The bathroom isn't going to win a beauty contest,
0:13:43 > 0:13:47'but overall, I don't think this house is too bad.'
0:13:47 > 0:13:51So, the place needs work, but the question is, as always,
0:13:51 > 0:13:55if bought for around the guide price, is there money in it?
0:13:55 > 0:14:00Well, yes. A three-bedder round here could easily reach over 400,000.
0:14:00 > 0:14:06So, while it wouldn't be enough to retire on, there's some profit margin for sure.
0:14:06 > 0:14:10What would certainly pad out your pension pot is this plot of land.
0:14:10 > 0:14:14You note I said "plot", because this triangle of garden
0:14:14 > 0:14:18has planning permission for a three-bedroomed house.
0:14:18 > 0:14:21This is mega amazing exciting news.
0:14:21 > 0:14:24You would lose a bit of value from the existing property,
0:14:24 > 0:14:30but that pales into insignificance when you think about the money you'd make from a new house here.
0:14:30 > 0:14:32Great news!
0:14:36 > 0:14:42'Well, that suddenly takes this auction lot into a new ballpark.
0:14:42 > 0:14:47'That £340,000 to £360,000 guide price now looks great value
0:14:47 > 0:14:50'because the plot of land gives you two good options.
0:14:50 > 0:14:53'You could refurbish the house and tender the new-build,
0:14:53 > 0:14:57'or you could just sell the plot on with planning permission.
0:14:57 > 0:15:01'So, to sell or to build? Ha! Well, that's the question.
0:15:01 > 0:15:04'A bit of digging around has turned up some evidence
0:15:04 > 0:15:06'which might sway the verdict.'
0:15:06 > 0:15:09- GUSHING WATER - Can you hear that gushing water?
0:15:09 > 0:15:11It's coming from under there.
0:15:11 > 0:15:16What if there's sewage pipes running underneath this plot?
0:15:16 > 0:15:20That could be a lot of ground work, and that could cost a lot of cash.
0:15:21 > 0:15:24'The drain isn't an insurmountable problem,
0:15:24 > 0:15:26'just potentially an added cost.
0:15:26 > 0:15:30'Overall, I think this is a blockbuster of an auction lot.
0:15:30 > 0:15:34'At that £340,000 to £360,000 guide price,
0:15:34 > 0:15:37'it looks like a potential steal.
0:15:38 > 0:15:43'What does a local estate agent make of what's on offer here?'
0:15:43 > 0:15:45The major selling point
0:15:45 > 0:15:48is a great detached house in a fantastic location,
0:15:48 > 0:15:51with the benefit of a plot to build a three-bedroom detached house,
0:15:51 > 0:15:54which rarely in a village like this come available.
0:15:54 > 0:15:56'Let's talk numbers.
0:15:56 > 0:16:00'What would the plot be worth if you sold it with planning permission?'
0:16:00 > 0:16:06In current market conditions, I'd set the plot between £150,000 to £175,000.
0:16:06 > 0:16:08'That's not bad.
0:16:08 > 0:16:14'What if you followed the plans and built a three-bed detached house on this site?'
0:16:14 > 0:16:18There's a lack of properties around, so it would be a very good proposition.
0:16:18 > 0:16:23I would think you'd look to market it between £390,000 to £400,000.
0:16:23 > 0:16:26'What about the existing house done up and refurbished?'
0:16:26 > 0:16:33Once renovated, the existing property would be worth in the region of £360,000 to £370,000.
0:16:33 > 0:16:38'With rental values around £1,000 per calendar month predicted for both properties,
0:16:38 > 0:16:43'this lot looks like it scores, whichever route is chosen.'
0:16:44 > 0:16:49This is an amazing opportunity. It gets me so excited.
0:16:49 > 0:16:53A chance to buy a family home in a fantastic area
0:16:53 > 0:16:57and then make most of your money back in profit from the new-build.
0:16:57 > 0:16:59It sounds like a corking deal to me.
0:16:59 > 0:17:01Let's find out who agreed at the auction.
0:17:05 > 0:17:09Lot number 68. I'd really like to start at £350,000.
0:17:09 > 0:17:11Bid me 350 to start?
0:17:11 > 0:17:14350, it's with you standing at the back.
0:17:14 > 0:17:16355, it's with you, if you like.
0:17:16 > 0:17:19355, he says yes. Now 360.
0:17:19 > 0:17:23360. And 365, sitting down, it's against you?
0:17:23 > 0:17:26365? I'll take two if it helps you. 362.
0:17:26 > 0:17:29362. 364.
0:17:29 > 0:17:31And six. And eight. 368.
0:17:32 > 0:17:36And 70. 370. And two. 372.
0:17:36 > 0:17:39And four. And six. 376.
0:17:39 > 0:17:42378. It's back with you. And 380, now?
0:17:42 > 0:17:44380 I have.
0:17:44 > 0:17:46And two? 382.
0:17:46 > 0:17:48And four? 384?
0:17:48 > 0:17:51384. And six? 386.
0:17:51 > 0:17:54And eight, back to you two at the back. 388?
0:17:54 > 0:17:58390 now. And two. You all want it, don't you? 392.
0:17:58 > 0:18:01And four? 394?
0:18:01 > 0:18:05At 392, then. I think it's the first time with you, sir.
0:18:05 > 0:18:11At 392, for the second. If you're sure you're all done.
0:18:11 > 0:18:14392, third and final time.
0:18:14 > 0:18:18- BANGS GAVEL - It's yours, sir, at £392,000.
0:18:19 > 0:18:22'So, for £392,000,
0:18:22 > 0:18:25'the new owner of the former police house, office and plot in Wrotham
0:18:25 > 0:18:31'is local man Bill, who's retired, but used to run a plumbing and heating business.
0:18:31 > 0:18:32'I met him at the property
0:18:32 > 0:18:37'to find out how he felt about getting his hands on this hot lot.'
0:18:39 > 0:18:43Bill, congratulations. That was an incredible deal, wasn't it?
0:18:43 > 0:18:47Well, it was for me. I think I can make it work.
0:18:47 > 0:18:52I'll play about with this one, and it'll give me time to get working on that one there.
0:18:52 > 0:18:55It's not often opportunities like this come up.
0:18:55 > 0:18:59No. I've probably been looking for a year, at least.
0:18:59 > 0:19:01What is your background? Are you a builder?
0:19:01 > 0:19:07I've done lots of extensions over the years. I've been in the building trade 35 years.
0:19:07 > 0:19:09I know a little bit about building.
0:19:09 > 0:19:12There's not many people that would buy a property
0:19:12 > 0:19:16who would then be able to build a house on a plot, like you're doing.
0:19:16 > 0:19:19No, but I think it's a challenge.
0:19:19 > 0:19:23It's going to keep me busy for a year, which is what I want.
0:19:23 > 0:19:29'Bill has renovated a number of properties and has a portfolio of rentals,
0:19:29 > 0:19:32'but has never built a house from scratch.
0:19:32 > 0:19:38'He's excited by the prospect and also happy with the existing plans,
0:19:38 > 0:19:41'so both parts of the project are ready to go.'
0:19:41 > 0:19:44What are you going to start with? This house or that house?
0:19:44 > 0:19:47This house. Work on it for two or three months, maximum.
0:19:47 > 0:19:50Then it'll be ready, and move over to that one.
0:19:50 > 0:19:54What are you going to do to this to make it amazing and turn it around?
0:19:54 > 0:19:56This will be extended.
0:19:56 > 0:19:59There'll be RSJs going in to make a big lounge-diner.
0:19:59 > 0:20:02You've not thought about keeping these walls
0:20:02 > 0:20:07but knocking the wall down between the kitchen and this reception room?
0:20:07 > 0:20:11No, I hadn't. I think most people want a separate lounge-diner,
0:20:11 > 0:20:13as opposed to a kitchen-diner.
0:20:13 > 0:20:17The kitchen, there's a lot to be knocked out in there.
0:20:17 > 0:20:21Plastered walls. Yeah, there's going to be a lot to do.
0:20:21 > 0:20:23Tell me what you're going to do with that police office!
0:20:23 > 0:20:26I'm going to turn it into a garage.
0:20:26 > 0:20:30- Right.- There's planning permission for that. It's been passed.
0:20:30 > 0:20:33But my grandson wants the sign.
0:20:33 > 0:20:35Wants to put it in his bedroom!
0:20:37 > 0:20:40'Bill's got a budget of £32,000 for this house,
0:20:40 > 0:20:43'and hopes to get it done in 12 to 14 weeks.
0:20:43 > 0:20:45'With all his experience and contacts in the trade,
0:20:45 > 0:20:51'that shouldn't pose many problems, but what about the new-build?'
0:20:51 > 0:20:54- Are you in a hurry to get that one started?- No. Well, I am.
0:20:54 > 0:20:59And what is the budget for property number two, for the new house?
0:20:59 > 0:21:01My budget for that is 120.
0:21:01 > 0:21:04How much would you hope to market that property for?
0:21:04 > 0:21:07Probably...380.
0:21:07 > 0:21:12So, hang on, Bill. That is £260,000 profit.
0:21:12 > 0:21:15Basically, you got that for free, really, didn't you?
0:21:15 > 0:21:19- It was buy one, get one! - It was buy one, get one free.
0:21:19 > 0:21:23If 260 profit is made on it, it'll be fantastic.
0:21:23 > 0:21:27What happens at the end of the road? Are you going to keep them? Sell them?
0:21:27 > 0:21:31I shall probably use this one as an office for a while,
0:21:31 > 0:21:33but sell both of them in the end,
0:21:33 > 0:21:37and move on and try another one, if it works.
0:21:37 > 0:21:40- There is no stopping you now, Bill! - Touch wood! Hopefully not.
0:21:40 > 0:21:44It's been wonderful meeting you. I cannot wait to see what you do.
0:21:44 > 0:21:49- I think you're going to do a grand job. Well done.- Thank you. Thanks.
0:21:49 > 0:21:53Bill has bought a blinder of a property here -
0:21:53 > 0:21:55with a plot thrown in!
0:21:55 > 0:22:00And if he can do the build for 120,000 and see that lovely profit,
0:22:00 > 0:22:06well, this will be one of the best auction buys I've seen in ages.
0:22:06 > 0:22:08You can find out how it goes later in the show.
0:22:09 > 0:22:12'Still to come, in Greater Manchester,
0:22:12 > 0:22:15'are the boarded-up windows a clue to the interior?'
0:22:15 > 0:22:18As you can see, it needs a bit of work!
0:22:19 > 0:22:24'In Kent, did the renovation go smoothly for Bill?'
0:22:24 > 0:22:29The true state of the property was worse than what we thought.
0:22:31 > 0:22:36'But first, in Derbyshire, how did Duncan's parents get on with the renovation?'
0:22:36 > 0:22:39They've been fantastic. They've helped out no end.
0:22:43 > 0:22:47'Earlier in the programme, we returned to Belper in Derbyshire,
0:22:47 > 0:22:51'to see a two-bedroom semi-detached cottage we first saw in 2008.
0:22:51 > 0:22:53'Although lovely from the outside,
0:22:53 > 0:22:57'this old stone-built cottage was daunting inside,
0:22:57 > 0:23:00'with crumbling ceilings, it was damp and dilapidated.
0:23:00 > 0:23:05'Most worrying of all was the bowed back wall.
0:23:05 > 0:23:08'Despite all these issues, it was bought for £100,000
0:23:08 > 0:23:12'by property business owner Wendy for her son, Duncan.
0:23:12 > 0:23:15'They hoped to turn this into his new home
0:23:15 > 0:23:18'on a budget of 35,000.
0:23:19 > 0:23:24'When we first went back, there had been some dramatic changes.
0:23:26 > 0:23:30'With the cottage supported by a framework of scaffolding and props,
0:23:30 > 0:23:33'and the walls stripped back to the original stone,
0:23:33 > 0:23:39'the process of putting it all back together again was just about to start.
0:23:39 > 0:23:42'That was over three years ago,
0:23:42 > 0:23:46'and with a budget that had risen from £35,000 to £50,000,
0:23:46 > 0:23:49'they certainly had their work cut out.
0:23:49 > 0:23:52'Now, four years after buying the property,
0:23:52 > 0:23:56'has Duncan finally got the house he wanted?
0:23:58 > 0:24:01'Without a scaffolding pole in sight,
0:24:01 > 0:24:05'a fantastic cottage has emerged. What about inside?
0:24:06 > 0:24:10'There wasn't much more than a shell when we last saw it.
0:24:12 > 0:24:17'Whoa! Out of the dust and rubble there's a fantastic new lounge,
0:24:17 > 0:24:19'complete with wood-burning stove.
0:24:23 > 0:24:27'That grotty back door has been replaced by new patio doors,
0:24:27 > 0:24:31'which throw plenty of light on the adjacent kitchen.
0:24:33 > 0:24:36'And all this area has been totally opened up.'
0:24:36 > 0:24:42Well, the staircase we've had manufactured to go into the corner.
0:24:42 > 0:24:45The stairs used to start here and went up at an angle.
0:24:45 > 0:24:48So we've changed the layout completely.
0:24:48 > 0:24:51We've managed to make it a nice big dining kitchen.
0:24:51 > 0:24:55'The downstairs space is a stunning success.
0:24:59 > 0:25:01'So what about upstairs?
0:25:03 > 0:25:05'Wow! What a difference!
0:25:07 > 0:25:10'There are now two good-size bedrooms,
0:25:10 > 0:25:14'one of which Duncan is using as a study and work-out room.
0:25:14 > 0:25:17'And remember that small bathroom?
0:25:19 > 0:25:23'That's not so small any more.
0:25:23 > 0:25:27'As if that wasn't impressive enough, there's the loft space...
0:25:33 > 0:25:39'..which is now a master bedroom, complete with en suite shower room.
0:25:39 > 0:25:44'What an amazing transformation! And there's more outside.'
0:25:48 > 0:25:53The garage we managed to build from the stone left over from the house.
0:25:53 > 0:25:57A lot of stone we found in the garden, just buried.
0:25:57 > 0:25:59We had so much left over,
0:25:59 > 0:26:04we managed to also build the flower garden and my nice barbecue here.
0:26:05 > 0:26:10'So it's a complete change since we last saw it nearly four years ago.
0:26:10 > 0:26:14'In fact, Duncan has been living here for nearly three years.
0:26:14 > 0:26:19'Most of the work was carried out in a six-month period, with his mum, Wendy, very much involved.
0:26:19 > 0:26:23'So, which tasks did she take on?'
0:26:23 > 0:26:26Paperwork, to start with,
0:26:26 > 0:26:30and then we left it to the builder and the plumber and electrician.
0:26:30 > 0:26:35After that, I came in and fitted the kitchen,
0:26:35 > 0:26:39tiled all the floors, painting, decorating,
0:26:39 > 0:26:45soft furnishings, all that kind of thing - all the fun stuff!
0:26:45 > 0:26:48'So, Wendy and her husband Ashley have worked tirelessly
0:26:48 > 0:26:51'to get a roof over their son's head - literally.
0:26:53 > 0:26:57'Although they own the cottage, it's very much Duncan's home.
0:26:57 > 0:27:00'How does he feel about their input?'
0:27:00 > 0:27:04They've been fantastic. They've helped out no end.
0:27:04 > 0:27:10Getting everything sorted, obviously, the money side of it was a big plus point for me.
0:27:10 > 0:27:13They've been fantastic and helped all the way along.
0:27:13 > 0:27:17'Duncan was considering taking in lodgers to help with the rent,
0:27:17 > 0:27:22'but for the moment, he's happy to have the fridge space to himself.
0:27:22 > 0:27:26'How much has it cost to create this three-bedroom cottage with family bathroom,
0:27:26 > 0:27:31'en suite shower room, fitted kitchen, rejuvenated lounge and a garage?
0:27:32 > 0:27:38'The last we heard was that the budget had risen from £35,000 to £50,000.
0:27:38 > 0:27:41'Was that blown out of the water?'
0:27:42 > 0:27:48We did go over, probably around 80,000, not counting the little bits and bobs.
0:27:48 > 0:27:52But the 50,000 didn't include building the garage.
0:27:52 > 0:27:54So I don't think we did too badly.
0:27:57 > 0:28:00'Yes, £80,000 for what they've done here is pretty good,
0:28:00 > 0:28:05'but it's a big overspend on even their revised £50,000 budget.
0:28:05 > 0:28:08'As it cost £100,000 to purchase in the first place,
0:28:08 > 0:28:14'their total investment will be £180,000, plus costs and fees.
0:28:14 > 0:28:19'What do two local estate agents think of this comprehensive renovation?'
0:28:19 > 0:28:23It's got a lovely old feel to it, all the old details,
0:28:23 > 0:28:25but a very modern finish, too.
0:28:25 > 0:28:31The conversion of the attic, the big bedroom with the en suite, has made the property what it is.
0:28:31 > 0:28:34The accommodation's great. It's quite bright,
0:28:34 > 0:28:37which is unusual for a cottage.
0:28:37 > 0:28:40It's got windows on the side and nice patio doors onto the garden.
0:28:40 > 0:28:43I think the parking facilities are quite unusual.
0:28:43 > 0:28:46They've got a big drive. You can get two or three cars on there
0:28:46 > 0:28:49and a big garage you could two cars in again.
0:28:49 > 0:28:53That's something that will make it stand out from the rest and make it sell, I'm sure.
0:28:53 > 0:28:57'The drive and the garage are a definite plus
0:28:57 > 0:29:00'but will the values be equally positive as a resale or rental?'
0:29:02 > 0:29:06I would expect this property to achieve in the region of £600 per calendar month.
0:29:06 > 0:29:09If you put this property on the market for rent,
0:29:09 > 0:29:13you'd be looking at achieving £600 per calendar month.
0:29:13 > 0:29:17I think that's what I would expect if it was put to rent to somebody else.
0:29:17 > 0:29:24'£600 per calendar month would see a yield of four per cent. Not stunning, but OK.
0:29:24 > 0:29:30'How would their £180,000 investment fare on the resale market?'
0:29:30 > 0:29:33I would put this on the market in the region of £180,000.
0:29:33 > 0:29:36If you put this property on the market for sale,
0:29:36 > 0:29:38I'd expect to achieve £180,000.
0:29:38 > 0:29:42That would mean more or less breaking even, wouldn't it?
0:29:42 > 0:29:47But we'll hang on to it for a few years and see what happens then.
0:29:47 > 0:29:49'So maybe it wouldn't make a pretty penny quite yet.
0:29:49 > 0:29:52'but it certainly is a beautiful cottage,
0:29:52 > 0:29:54'and, more importantly, a lovely home for Duncan.
0:29:54 > 0:29:58'It's been quite a long journey bringing the property back to life.
0:29:58 > 0:30:02'So, on reflection, how do they feel about the whole project?'
0:30:03 > 0:30:07Quite enjoyable. Hard work, but I've learned a lot from it.
0:30:07 > 0:30:09And now I get to enjoy it.
0:30:09 > 0:30:11It's just been very enjoyable.
0:30:11 > 0:30:16Rather than making money, to do something for your son is very rewarding.
0:30:25 > 0:30:29'The next property is in Greater Manchester, Radcliffe, to be exact.
0:30:29 > 0:30:35'Those with an eye to investing in the area will find there's plenty to look at here,
0:30:35 > 0:30:38'with some new developments and some traditional back-to-backs.
0:30:38 > 0:30:42'But what I'm here to see is this four-bed end-of-terrace.'
0:30:43 > 0:30:49The red brick terraced properties that dominate the area are very popular with renters.
0:30:49 > 0:30:51But there is increased competition,
0:30:51 > 0:30:55not only from a new housing development, but also a shared equity scheme.
0:30:55 > 0:30:57So it's the numbers that are going to be important.
0:30:57 > 0:31:03It started well, because the guide price was just 25 to 30,000 quid.
0:31:03 > 0:31:07These boards don't exactly scream kerb appeal.
0:31:12 > 0:31:16But they're easily removed, and from the outside at least,
0:31:16 > 0:31:18this property looks pretty solid.
0:31:19 > 0:31:23So what have we got? Well, it's an end terrace,
0:31:23 > 0:31:26which always means you've got a bit more room, which is good news.
0:31:26 > 0:31:29Will this place be any exception? Let's find out.
0:31:29 > 0:31:33First sitting room area here. And wow, in through the door!
0:31:33 > 0:31:37That is a fireplace and a half!
0:31:37 > 0:31:39Might not be to your tastes,
0:31:39 > 0:31:44so it might end up being removed! A lot of light coming in, so that's good news.
0:31:44 > 0:31:46This is sitting room number one.
0:31:46 > 0:31:48Sitting room two is over this way.
0:31:48 > 0:31:51Again a good size, lots of light coming in.
0:31:51 > 0:31:55Everything's in a bit of a state at the moment, but I'm looking at the fabric of the building.
0:31:55 > 0:31:58You've got an open fire, lots of storage space.
0:31:58 > 0:32:00Reasonably high ceilings, so good news.
0:32:00 > 0:32:03But the thing that isn't working for me is this,
0:32:03 > 0:32:04the kitchen.
0:32:04 > 0:32:08Maybe you could consider knocking one of these walls through,
0:32:08 > 0:32:11because at the moment it just feels a little bit wrong.
0:32:11 > 0:32:13As you can see, it needs a bit of work!
0:32:13 > 0:32:17All the units need ripping out. The whole thing is going to be refurbished.
0:32:17 > 0:32:20But, yes, true to form, lots of space.
0:32:20 > 0:32:23And for that price? Woo!
0:32:24 > 0:32:27Yes, for that 25 to £30,000 guide price,
0:32:27 > 0:32:29there's a lot of house here.
0:32:31 > 0:32:35I'm pleased to see the windows behind the boards are double-glazed and look fairly new.
0:32:37 > 0:32:41Upstairs, the bathroom is going to need a complete refit.
0:32:41 > 0:32:44There's hardly any of it left.
0:32:46 > 0:32:48There's a single bedroom at the end of the corridor,
0:32:48 > 0:32:52while in the middle there's a decent-sized double bedroom.
0:32:54 > 0:32:58But lots of pipework and the tank had been removed
0:32:58 > 0:32:59and the place has been trashed.
0:32:59 > 0:33:03I'd definitely advise getting the damp investigated.
0:33:03 > 0:33:08So, into the last bedroom, and it's a kind of medium size.
0:33:08 > 0:33:13But it would be a lot bigger if somebody hadn't put a stud partition wall here
0:33:13 > 0:33:16to create... Well, what's that?
0:33:16 > 0:33:19It's not a bedroom. It could have been a walk-in closet, if you like.
0:33:19 > 0:33:21But either way, take this out.
0:33:21 > 0:33:25Have a few large bedrooms rather than lots of small ones.
0:33:25 > 0:33:27Nowadays, that's what people want.
0:33:27 > 0:33:32But it's not too much work to take that out, and overall, you have the space to play with.
0:33:32 > 0:33:35So the property's not in the best physical condition,
0:33:35 > 0:33:37but it is a good size with loads of potential.
0:33:37 > 0:33:41However, everywhere needs attention, inside and out,
0:33:41 > 0:33:46so you'd need plenty of resolve, time and know-how to get stuck in to this one.
0:33:50 > 0:33:54To get another opinion, we asked a local property expert
0:33:54 > 0:33:56to take a look at the property.
0:33:56 > 0:33:59Does this end-of-terrace get his thumbs up?
0:33:59 > 0:34:02The house is an unusual one with it being on the end of the row.
0:34:02 > 0:34:05It sort of fits on to the end.
0:34:05 > 0:34:08The layout's long and narrow, rather than any other way.
0:34:08 > 0:34:11But it's a good size, three bedrooms and obviously needs some work.
0:34:11 > 0:34:13But it's got quite a nice feel to it.
0:34:13 > 0:34:17'Let's talk figures. How much is the house worth in this condition
0:34:17 > 0:34:20'and how much could it be worth after a refurbishment?'
0:34:20 > 0:34:22I think in the current condition,
0:34:22 > 0:34:25it's probably worth somewhere around £30,000.
0:34:25 > 0:34:30Once the work's done, I'd say the ceiling price in the area is around £70,000
0:34:30 > 0:34:33for a three-bedroom terraced house. So that will be the maximum.
0:34:33 > 0:34:37'How much income could the house generate for a buy to let investor?'
0:34:37 > 0:34:40Rental demand for the area is going to be strong
0:34:40 > 0:34:44and looking at what others seem to be renting at for a three bedroom,
0:34:44 > 0:34:49you'd expect somewhere in the region of 425 to £450 per calendar month.
0:34:49 > 0:34:52So, a good-sized property, either for an owner occupier
0:34:52 > 0:34:54or a buy to let investor.
0:34:54 > 0:34:55It's all about the price that's paid.
0:34:55 > 0:34:58Let's find out what that was when it went under the hammer.
0:35:00 > 0:35:03Vacant end-terraced house. Needs renovation.
0:35:03 > 0:35:05I'm asking for £10,000.
0:35:05 > 0:35:0810,000? Ten there.
0:35:08 > 0:35:1115 I need. I've got ten.
0:35:11 > 0:35:1315 here. 20, sir?
0:35:13 > 0:35:1520 I have. 25?
0:35:15 > 0:35:1725 here. Give me 30?
0:35:17 > 0:35:19No? 26?
0:35:19 > 0:35:2126 OK?
0:35:21 > 0:35:22Yep? 27?
0:35:24 > 0:35:2627. 27, new bidder,
0:35:26 > 0:35:28further at the back.
0:35:28 > 0:35:3028. 29?
0:35:30 > 0:35:3330? 30 on the phone. I'll take it.
0:35:33 > 0:35:3631, now. 32 on the phone.
0:35:36 > 0:35:39Behind you, do you want to come back in at 33?
0:35:39 > 0:35:42He does. 34 on the phone.
0:35:42 > 0:35:4535. 36 on the phone?
0:35:46 > 0:35:4837?
0:35:48 > 0:35:4937.
0:35:49 > 0:35:53Can I say 38 on the phone? I can. 39 behind you.
0:35:53 > 0:35:55I've got it. 40 I need.
0:35:55 > 0:35:5740. He's back. 41, sir?
0:35:57 > 0:35:5940 and a half.
0:35:59 > 0:36:0241 on the phone? It is.
0:36:02 > 0:36:06Another 500 behind you? 41 and a half. 42?
0:36:06 > 0:36:09Shaking the head. It's with you, sir, at 41 and a half.
0:36:09 > 0:36:12First time. Second time at 41 and a half. All done?
0:36:12 > 0:36:16It is now. It's your property, sir. Can I see your paddle number, please?
0:36:17 > 0:36:24'That successful bid of £41,500 was made by Paul and his wife Susan,
0:36:24 > 0:36:25'who live in Manchester.
0:36:25 > 0:36:29'Paul is a road haulage maintenance manager
0:36:29 > 0:36:33'and works part time since suffering a stroke last year.
0:36:33 > 0:36:36'Susan was a computer programmer for 30 years,
0:36:36 > 0:36:38'but now works part time in a jeweller's.
0:36:38 > 0:36:42'Paul has three rental properties in the area
0:36:42 > 0:36:45'as well as 21 garages he built and rents out.
0:36:45 > 0:36:49'I met the couple back at the house to find out more.'
0:36:49 > 0:36:52- Paul, lovely to meet you both. Congratulations.- Thank you.
0:36:52 > 0:36:54Tell me why you wanted to buy this.
0:36:54 > 0:36:59I'm fond of the area. I grew up round here and left when I was eight years old.
0:36:59 > 0:37:04- Did you?- It's coming back to where I spent my youth, really.
0:37:04 > 0:37:09- That was the main reason to buy here?- It's not a million miles from where we live.
0:37:09 > 0:37:14- I've also got another property in the local area.- Right.
0:37:14 > 0:37:19- Is this something you've done a lot of, Susan?- We have a couple of other properties that we've renovated
0:37:19 > 0:37:21and we rent out.
0:37:21 > 0:37:23This will be the first terraced.
0:37:23 > 0:37:26We seem to be doing a different type each time!
0:37:26 > 0:37:29That's all right, isn't it? Diversity in the portfolio.
0:37:29 > 0:37:34And it's in a regeneration area as well, which again will help.
0:37:34 > 0:37:38It improves the area, so it would make letting possibly easier as well.
0:37:38 > 0:37:41So why this particular house?
0:37:41 > 0:37:43Right price. Saw the potential.
0:37:43 > 0:37:45Decent-sized property. End terrace.
0:37:45 > 0:37:48It's not overlooked. It's got fields at the side.
0:37:48 > 0:37:51What about the internal state. It's obviously in a bit of a mess.
0:37:51 > 0:37:55- Did that put you off at all?- It's the first time I've seen it, today!
0:37:55 > 0:37:56- No!- It is!
0:37:56 > 0:37:59Whoa!
0:37:59 > 0:38:00- We've seen the outside.- Right!
0:38:02 > 0:38:05- How come you didn't see inside? - A bit last-minute, really.
0:38:05 > 0:38:09You could see the bones of the structure. It all looked OK.
0:38:09 > 0:38:12Took a flier and thought, "It can't be that bad inside."
0:38:12 > 0:38:15And I don't think it is, really.
0:38:15 > 0:38:19You know, it doesn't faze me. I'm sure it's fixable.
0:38:19 > 0:38:21It's fortunate Paul does feel that way,
0:38:21 > 0:38:25because not viewing a property before buying it is far from advisable.
0:38:25 > 0:38:29But now they've had a look around, what's the game plan?
0:38:29 > 0:38:31Talk me through it, room by room.
0:38:31 > 0:38:35I think the biggest change will probably be the back living room and kitchen.
0:38:35 > 0:38:39I want to open it up into a big dining/kitchen area.
0:38:39 > 0:38:44- Nice.- If I can. That will make it a bit more marketable, in my eyes.
0:38:44 > 0:38:47And obviously the front bedroom, which is divided into two,
0:38:47 > 0:38:52I'll open that back up to one single bedroom. Central heating,
0:38:52 > 0:38:55- rewired.- What about the fireplace?
0:38:55 > 0:38:57- Oh, yes!- It's staying there!
0:38:58 > 0:39:00Well, some people might like it!
0:39:00 > 0:39:02I'm sure there's a market for that!
0:39:05 > 0:39:08'I won't be sad to see the back of that fireplace!
0:39:08 > 0:39:12'I think Paul and Susan have the experience to make the right changes to the house.
0:39:12 > 0:39:15'On previous renovations, Paul did most of the work himself.
0:39:15 > 0:39:19'But since his stroke, his left arm has been badly affected,
0:39:19 > 0:39:22'which means changing the way they do this project.'
0:39:23 > 0:39:27It turns your life upside-down, but you pick yourself up and get on.
0:39:27 > 0:39:31- What will you be doing? Directing Susan and other people? - Basically, yes.
0:39:31 > 0:39:35I'm going to hopefully get my son involved
0:39:35 > 0:39:39and my father's been in the property business all his life.
0:39:39 > 0:39:44Then we need to draw up on some trades. Not an issue. Just get it done.
0:39:44 > 0:39:48- But you're still going to be very actively involved.- Every day. Yes.
0:39:48 > 0:39:54Are you looking forward to the challenge, learning some new skills under Paul's expert tuition?
0:39:54 > 0:39:58- It should be fun!- As long as we don't fall out!
0:40:06 > 0:40:10'With Paul's experience and Susan's willingness to get stuck in,
0:40:10 > 0:40:15'they plan to finish the work in three months on a budget of ten to £15,000
0:40:15 > 0:40:17'before putting it on the rental market.'
0:40:17 > 0:40:21Is there anything in particular worrying you about this project?
0:40:21 > 0:40:23My physical ability.
0:40:23 > 0:40:26My restriction upon what I can do.
0:40:26 > 0:40:30But I'll just have to call up all the people to replace my left arm.
0:40:30 > 0:40:33Is this the first project you've done since you had your stroke?
0:40:33 > 0:40:39- Yeah. But we will overcome. - Congratulations. Well done.
0:40:39 > 0:40:41- We look forward to seeing how you get on.- Thank you.
0:40:41 > 0:40:45Well, Paul picking himself up admirably
0:40:45 > 0:40:48after what has obviously been a very traumatic time for him and Susan.
0:40:48 > 0:40:51But it hasn't diminished his passion for property.
0:40:51 > 0:40:56Susan has a few things to learn, though. How will they get on sorting this place out?
0:40:56 > 0:40:58Find out later in the show.
0:41:01 > 0:41:04Work can sometimes take longer when you're doing up property.
0:41:04 > 0:41:07So you need to factor in those delays when you do your calculations.
0:41:07 > 0:41:11So, did today's buyers hit their timescales and budget?
0:41:11 > 0:41:13Let's go back for an update.
0:41:13 > 0:41:16In the village of Wrotham in Kent,
0:41:16 > 0:41:19I came across what seemed like bargain of the year!
0:41:19 > 0:41:23Not only did you get a three-bed detached house with arresting views,
0:41:23 > 0:41:26you also got a former police office.
0:41:28 > 0:41:31And if that wasn't enough, it also came with a plot of land
0:41:31 > 0:41:36with planning permission granted to build a three-bed detached property.
0:41:36 > 0:41:42Wow! This lot was snapped up at auction by local man Bill, for 392,000.
0:41:44 > 0:41:47He's retired now, but owned his own plumbing and heating business
0:41:47 > 0:41:51and had worked in the building trade for over 25 years.
0:41:51 > 0:41:54With plans to tackle first the renovation of the house
0:41:54 > 0:41:55then do the new build,
0:41:55 > 0:41:57Bill was going to be very busy.
0:41:58 > 0:42:02What happens at the end? Are you going to keep them? Sell them?
0:42:02 > 0:42:06I shall probably use this one as a bit of an office for a while,
0:42:06 > 0:42:07but sell both of them in the end.
0:42:07 > 0:42:11Then move on and try another one. If it works!
0:42:11 > 0:42:13There's no stopping you now, Bill, is there?
0:42:13 > 0:42:15Touch wood, hopefully not!
0:42:21 > 0:42:24So Bill was definitely on a roll,
0:42:24 > 0:42:29and with a proposed £32,000 budget for Phase One, renovation of the house,
0:42:29 > 0:42:32he hoped that along with friends he knew in the trade
0:42:32 > 0:42:35he could get it ready for market in three to four months.
0:42:37 > 0:42:39And just under four months later,
0:42:39 > 0:42:43we're back to see what Bill has done to the house and former police office.
0:42:46 > 0:42:49Well, outside hasn't significantly changed.
0:42:49 > 0:42:52A window has replaced the door in the former police office,
0:42:52 > 0:42:54but otherwise it's fairly similar.
0:42:55 > 0:42:59But it was inside where Bill really hoped to make his mark.
0:43:04 > 0:43:07And wow! What a mark!
0:43:07 > 0:43:12It looks like he took my advice and opened up the kitchen and old dining room
0:43:12 > 0:43:15to make one fantastic kitchen/diner.
0:43:17 > 0:43:19Originally, there was a wall here
0:43:19 > 0:43:21and this was the dining room.
0:43:21 > 0:43:24The kitchen was very tatty.
0:43:24 > 0:43:29So what we did, we took the wall down, put a new RSJ in,
0:43:29 > 0:43:30rebuilt that wall there,
0:43:30 > 0:43:35and put new tiles, work surfaces, new flooring, new ceiling,
0:43:35 > 0:43:39new lighting, the complete schmozzle, right the way through.
0:43:39 > 0:43:43I am so pleased he's done that. It looks great!
0:43:46 > 0:43:50And by blocking up the wall between what was the lounge and dining room,
0:43:50 > 0:43:52he's now created a warm and welcoming lounge.
0:43:55 > 0:43:59Upstairs, the transformation continues.
0:43:59 > 0:44:04The three bedrooms re-plastered, rewired, fully decorated and carpeted.
0:44:10 > 0:44:14The bathroom has also undergone a comprehensive refurbishment.
0:44:19 > 0:44:22This place really is now looking as good as new.
0:44:27 > 0:44:32The true state of the property, once we started uncovering things, it was worse than we thought.
0:44:32 > 0:44:36They put a lot of work in. I've had a couple of guys here all the time,
0:44:36 > 0:44:38Richard and Gary, who have been really good.
0:44:38 > 0:44:44They worked like Trojans and brought it back. We're all really pleased with the results.
0:44:44 > 0:44:47So Bill and some friends in the trade
0:44:47 > 0:44:49have done the old place proud.
0:44:49 > 0:44:54But what about the former police office that was attached to the side?
0:44:54 > 0:44:56Is that now as captivating as the house?
0:44:57 > 0:45:01The old police office is still in the process of being done.
0:45:01 > 0:45:04We put windows in the front, windows in the back.
0:45:04 > 0:45:08We're still working on that. There was a police sign which my grandson wanted.
0:45:08 > 0:45:11So he's looking after that at the moment.
0:45:11 > 0:45:12There's clearly still a bit to do here,
0:45:12 > 0:45:17but he's hoping to turn this into a family room eventually.
0:45:17 > 0:45:21And this isn't the only area that still needs some work.
0:45:21 > 0:45:24The flat roof extension at the side has been removed
0:45:24 > 0:45:26and certainly needs tidying up.
0:45:26 > 0:45:29But look around and there's no sign of that new second home.
0:45:29 > 0:45:32Spill the beans, Bill!
0:45:34 > 0:45:38Someone's made me an offer for the plot of land, so I'm um-ing and ah-ing over that.
0:45:38 > 0:45:40The offer I've had is 140K,
0:45:40 > 0:45:42which I think I'll probably take.
0:45:42 > 0:45:46It'll release me to get on with other stuff.
0:45:52 > 0:45:56With a potential £140,000 on the table,
0:45:56 > 0:45:59I think I'd probably take the money and run.
0:45:59 > 0:46:03But if things look promising from a financial point of view with the land,
0:46:03 > 0:46:05how are things shaping up with the house?
0:46:05 > 0:46:08My original budget was 32K.
0:46:08 > 0:46:11Luckily I'm under budget. I'm about 29K
0:46:11 > 0:46:15because I called a few favours in from different people in the industry
0:46:15 > 0:46:17and it's worked out well.
0:46:17 > 0:46:23A £29,000 spend on top of the purchase price of 392,000
0:46:23 > 0:46:26would see a total investment without costs and fees
0:46:26 > 0:46:29of 421,000.
0:46:29 > 0:46:34But with Bill having an offer of £140,000 for the plot of land,
0:46:34 > 0:46:40anything above 281,000 for the house will see him in profit.
0:46:40 > 0:46:42What do two local estate agents make of it all?
0:46:44 > 0:46:46First impressions, he's done a really good job.
0:46:46 > 0:46:48Lovely feeling in the kitchen/breakfast room.
0:46:48 > 0:46:50Nice quality finish to it, as well.
0:46:50 > 0:46:53Other rooms are really good along with the bathroom.
0:46:53 > 0:46:55The first impressions were quite good.
0:46:55 > 0:46:58A bit disappointed coming up to see the kerb appeal of the house.
0:46:58 > 0:47:01He could have done a bit with the garden, maybe climbing plants
0:47:01 > 0:47:03or some herbaceous borders or something.
0:47:03 > 0:47:06But when first coming in to the house, the finish is pretty good.
0:47:06 > 0:47:10And I like all the light, bright space that they've left.
0:47:10 > 0:47:12Ideally, Bill wants to sell and move on,
0:47:12 > 0:47:16but in the current market, he might have to consider a rental.
0:47:16 > 0:47:20In the present market, you'd look at £1,200 per calendar month.
0:47:20 > 0:47:24It would rent in the current market between 1,000 and 1,100 per calendar month.
0:47:24 > 0:47:26I think that's very good. I wasn't expecting that.
0:47:26 > 0:47:28Probably eight to nine.
0:47:28 > 0:47:31But yeah, I'm very pleased with that one.
0:47:31 > 0:47:33Taking into account the potential value of the plot,
0:47:33 > 0:47:37those rental estimates could see a yield of around four to five per cent.
0:47:37 > 0:47:40But could he do better on the resale market?
0:47:40 > 0:47:45Bill's total investment is 421,000
0:47:45 > 0:47:48and he's been offered 140,000 for the plot.
0:47:48 > 0:47:54So if he can get over £281,000, he'll definitely be in profit.
0:47:54 > 0:47:58If I was to put the property on the market, I would look in the region of 375 to 395.
0:47:58 > 0:48:00In respect of the building plot next door,
0:48:00 > 0:48:04I'd look at a guide price in the region of £150,000.
0:48:04 > 0:48:09I would value the property as it currently stands between 360 and £380,000.
0:48:09 > 0:48:13I would value the plot somewhere between 120 and £150,000.
0:48:13 > 0:48:15Those figures I'm more than happy with.
0:48:15 > 0:48:18It will leave me a nice profit.
0:48:18 > 0:48:22So I'll probably sell them both and move on to the next project.
0:48:23 > 0:48:25No wonder he's pleased!
0:48:25 > 0:48:30With a £140,000 offer for the land already on the table,
0:48:30 > 0:48:34the valuation on the house could see a potentially whopping pre-tax profit
0:48:34 > 0:48:38of between 79 and £114,000.
0:48:38 > 0:48:41That's not bad for three to four months' work.
0:48:41 > 0:48:45So presumably there isn't any stopping Bill now.
0:48:47 > 0:48:49It's been good. Stressful here and there.
0:48:49 > 0:48:53Even now, learning curves after all these years.
0:48:53 > 0:48:56But I'll move on and do another one later on.
0:49:00 > 0:49:04We're heading back to Radcliffe, Greater Manchester, now,
0:49:04 > 0:49:06where earlier in the programme, Paul and his wife Susan
0:49:06 > 0:49:09had bought this badly-damaged end of terrace
0:49:09 > 0:49:12for £41,500.
0:49:13 > 0:49:17Paul's a part-time road haulage maintenance manager,
0:49:17 > 0:49:21while Susan works part time in a jeweller's.
0:49:21 > 0:49:23They have three other investment properties locally
0:49:23 > 0:49:26and 21 garages.
0:49:26 > 0:49:29Last year, Paul suffered a stroke
0:49:29 > 0:49:32and this was his first investment purchase since then.
0:49:32 > 0:49:35He'd taken on a bit of a challenge!
0:49:35 > 0:49:39So what about the internal state? It's in a bit of a mess.
0:49:39 > 0:49:41Did that put you off at all?
0:49:41 > 0:49:44- It's the first time we've seen it, today.- No!- It is!
0:49:44 > 0:49:47- We've seen the outside.- Right.
0:49:47 > 0:49:49How come you didn't see inside?
0:49:49 > 0:49:51A bit last-minute, really.
0:49:51 > 0:49:53You could see the bare bones of the structure.
0:49:53 > 0:49:56Took a flier and thought, "It can't be that bad inside."
0:49:56 > 0:49:58And I don't think it is, really.
0:49:58 > 0:50:03Paul was used to doing the majority of the renovation work himself.
0:50:03 > 0:50:08But this time was going to have to delegate some of that to get it ready to let.
0:50:08 > 0:50:10So, how have the couple got on?
0:50:10 > 0:50:14It's now six and a half months later and we're back to find out.
0:50:17 > 0:50:20The exterior has had quite a facelift
0:50:20 > 0:50:25and that rain should prove no problem because the leaky roof has been well and truly fixed.
0:50:28 > 0:50:32In the reception room to the right of the front door,
0:50:32 > 0:50:35the chimney breast has been opened up to create a feature fireplace.
0:50:39 > 0:50:44And the wall to the kitchen is now gone, creating a much better flow between the two rooms.
0:50:48 > 0:50:53Now the former derelict kitchen is kitted out and ready for tenants and Paul is very pleased.
0:50:53 > 0:50:56First of all in here, we had to pull it all apart,
0:50:56 > 0:51:01which entailed taking the ceilings down in both this room and the kitchen.
0:51:01 > 0:51:05We had some new windows to put in, a new back door.
0:51:05 > 0:51:07We opened the fireplace up.
0:51:07 > 0:51:12We took this wall down to turn it into one kitchen/diner.
0:51:13 > 0:51:16It's all been replastered, central heating, rewired.
0:51:16 > 0:51:21But the main thing that's really changed it is to take this wall down
0:51:21 > 0:51:25which has turned it into a large kitchen/modern diner.
0:51:25 > 0:51:28In the living room, remember that fireplace with the crazy paving effect?
0:51:28 > 0:51:31Well, thankfully it's been banished,
0:51:31 > 0:51:33only to live on in our memories!
0:51:33 > 0:51:36But it's much easier on the eye now!
0:51:36 > 0:51:40Upstairs, the cupboard in the first bedroom has gone
0:51:40 > 0:51:42and it's all been painted pink.
0:51:42 > 0:51:47Again, the fireplace has been opened up to create a lovely feature in the corner.
0:51:47 > 0:51:50Along the corridor and the smashed-up bathroom
0:51:50 > 0:51:53is now, well, smashing!
0:51:57 > 0:52:01The front bedroom has been divided to create a fourth bedroom.
0:52:02 > 0:52:06But Paul has sensibly removed the stud wall and reverted it
0:52:06 > 0:52:08to being the master bedroom.
0:52:10 > 0:52:12So this room has been transformed.
0:52:12 > 0:52:14There used to be a wall across here
0:52:14 > 0:52:18which was dividing it into two rooms.
0:52:18 > 0:52:23The wall was taken out and it was converted back to its original large bedroom.
0:52:23 > 0:52:25We've opened the fireplace up as a feature.
0:52:25 > 0:52:31It's turned into a nice room, I think. It's a credit, really, compared to what it was.
0:52:31 > 0:52:33So the house is back to three bedrooms.
0:52:33 > 0:52:37It's been replastered from top to bottom and rewired
0:52:37 > 0:52:41so it's no surprise that Paul's three-month schedule slipped.
0:52:41 > 0:52:45But there were also unexpected damp issues
0:52:45 > 0:52:47as Susan explains.
0:52:48 > 0:52:51The biggest problem was the roof. It had been leaking.
0:52:51 > 0:52:58We got a roofer in who fixed the missing slates, but the damp kept coming through.
0:52:58 > 0:53:01It took a while for them to find out it was one of the chimneys,
0:53:01 > 0:53:04which then had to be taken down.
0:53:04 > 0:53:08So the chimney has gone, and so have the leaks.
0:53:08 > 0:53:11A bigger problem to fix than anticipated,
0:53:11 > 0:53:13but that's the world of property renovation for you.
0:53:13 > 0:53:17The rear yard has been smartened up as well.
0:53:17 > 0:53:20Because it was his first development since his stroke,
0:53:20 > 0:53:23the whole family and Susan have pulled together here.
0:53:23 > 0:53:29But Paul also had the bright idea of advertising for some extra help!
0:53:29 > 0:53:31I found a young chap, lives round the corner,
0:53:31 > 0:53:35who's come along and gained a lot of experience
0:53:35 > 0:53:41and has been very willing to assist just for the experience of doing something like this.
0:53:42 > 0:53:46And that young chap was Devon, who was worth his weight in gold,
0:53:46 > 0:53:50helping Paul and learning a variety of renovation skills into the bargain.
0:53:50 > 0:53:54So, how much did this renovation cost?
0:53:54 > 0:53:57The original budget was 15 to £20,000
0:53:57 > 0:54:00and it ended up at 20,000.
0:54:00 > 0:54:04That would take their total investment to 61,500.
0:54:05 > 0:54:08They've certainly transformed the look of the house,
0:54:08 > 0:54:11but have they transformed its rental and re-sale value?
0:54:11 > 0:54:15Time to hear from two local estate agents.
0:54:15 > 0:54:18First impressions, the house is lovely. It's been newly modernised,
0:54:18 > 0:54:22recently refurbished, with brand-new kitchen, bathroom and heating system.
0:54:22 > 0:54:24It's double-glazed. It's got everything going for it.
0:54:24 > 0:54:30Some very excellent work has been done, especially in the kitchen/ reception room.
0:54:30 > 0:54:32Doing a very good job.
0:54:32 > 0:54:36The fashion very much these days is open plan living space,
0:54:36 > 0:54:38knocking it through, opening it up is the right thing to do.
0:54:38 > 0:54:43Paul and Susan have done this property up to a good standard for the rental market
0:54:43 > 0:54:46and already have a tenant lined up.
0:54:46 > 0:54:48So what kind of rent should they be asking for?
0:54:48 > 0:54:54Property normally like this would command a rent of about £450 per calendar month.
0:54:54 > 0:54:57This one's in very nice condition, it's brand-newly done.
0:54:57 > 0:55:01It may command a little bit more, probably £475 per calendar month.
0:55:01 > 0:55:07I think you can easily achieve 500 to £600 per calendar month.
0:55:07 > 0:55:10The second one sounds more reasonable.
0:55:10 > 0:55:17I have let it out. I've got a tenant moving in today who's going to pay £550 a month.
0:55:17 > 0:55:21That's great news. They certainly don't mess about.
0:55:21 > 0:55:24With that rental income of £550 per month,
0:55:24 > 0:55:29they'll get a more than tidy yield of 10 to 11%.
0:55:29 > 0:55:33But is the property worth more than the £61,500 invested here?
0:55:33 > 0:55:38If I'm going to sell, it's not less than £60,000.
0:55:38 > 0:55:42And the maximum I hope to go up to £75,000.
0:55:42 > 0:55:44Prices are still quite tough in the area.
0:55:44 > 0:55:47I'd expect to price in the region of £70,000.
0:55:47 > 0:55:52That valuation range from 60 to 75,000
0:55:52 > 0:55:55could produce anything from a £1,500 loss
0:55:55 > 0:56:00to a £13,500 gross profit, before the usual deductions.
0:56:02 > 0:56:04A little bit disappointed in the end valuation.
0:56:04 > 0:56:08But I think I knew from the onset it was going to be a rental property
0:56:08 > 0:56:14and I think it should return good money over the years to come.
0:56:14 > 0:56:17Paul's already bought his next property at auction
0:56:17 > 0:56:20and plans another refurbishment in the near future.
0:56:20 > 0:56:25It's great to see him doing so well, despite such a tough time since his stroke.
0:56:25 > 0:56:30It's been enjoyable. I think in the long run it'll be worthwhile.
0:56:30 > 0:56:35And it's been good for Paul to get him out and doing things.
0:56:38 > 0:56:42Well, that's what happened with the buyers on today's programme.
0:56:42 > 0:56:46As you know, anything can and does happen on Planet Property!
0:56:46 > 0:56:49So make sure you join us next time for more Homes under the Hammer.
0:56:49 > 0:56:52- See you then.- Goodbye!- Goodbye!
0:57:13 > 0:57:15Subtitles by Red Bee Media Ltd