0:00:02 > 0:00:06- Welcome to the programme.- Buying a property can be a long process,
0:00:06 > 0:00:08but not when you buy at auction.
0:00:08 > 0:00:13Imagine having the keys to your dream property in less than a month, depending on where you buy.
0:00:13 > 0:00:17Sound too good to be true? Not if you buy your home under the hammer.
0:00:42 > 0:00:48Sometimes buying at auction can be a bit of a gamble, but not if you do your research first.
0:00:48 > 0:00:53So are today's buyers on a winning streak? Here's what they bought.
0:00:54 > 0:00:58'This Grade Two listed cottage in Devon leaves me speechless.'
0:00:58 > 0:01:00Uhhh...
0:01:00 > 0:01:03Wow! 'Well, almost.'
0:01:04 > 0:01:09'In Kent, this lovely Victorian cottage seems to have lost some of its charm.'
0:01:09 > 0:01:13They've tried to make this look and feel like it's a new house.
0:01:14 > 0:01:21'And is the reason this three-bed house in Stoke has a low guide price the bathroom or the kitchen?'
0:01:21 > 0:01:24No, something a bit more serious.
0:01:25 > 0:01:29'All these properties have been sold at auction. We'll find out
0:01:29 > 0:01:32'who bought them when they went under the hammer.'
0:01:32 > 0:01:34Your lot, madam.
0:01:37 > 0:01:39I'm in Crediton in Devon.
0:01:39 > 0:01:45The town is divided into two parts - the east, or old part, and the west, or new part.
0:01:45 > 0:01:52Sadly, that came about because a large portion of the town was destroyed by a fire in 1743,
0:01:52 > 0:01:56but luckily for us, the property I'm here to see is in the old part.
0:01:56 > 0:01:59# Darling, won't you meet me
0:01:59 > 0:02:03# In the old part of town? #
0:02:03 > 0:02:06Crediton is a popular Devon market town.
0:02:06 > 0:02:11Property prices are a bit cheaper here than nearby Exeter, seven miles away,
0:02:11 > 0:02:15making Crediton attractive to first-time buyers and families.
0:02:15 > 0:02:21And here it is, a character, Grade Two listed, one-bedroomed, mid-terrace cottage.
0:02:21 > 0:02:27Now, I know that ten years ago, this place sold for £50,500.
0:02:27 > 0:02:31The guide price at auction was 55 to 65.
0:02:31 > 0:02:36Even given the current downturn in the property market, that sounds like it could be a bargain.
0:02:36 > 0:02:40However, the clue might be the description in the auction catalogue
0:02:40 > 0:02:44which says, "It's a renovation project." How bad can it be?
0:02:48 > 0:02:51Hmm...
0:02:51 > 0:02:53Pretty bad.
0:02:53 > 0:02:56Gosh, well, um...
0:02:56 > 0:03:01It's not what I expected. This is not your common or garden mid-terrace, that's for sure.
0:03:01 > 0:03:04Look at these floorboards and these...
0:03:04 > 0:03:06Look at these beams!
0:03:08 > 0:03:12That is oak. It looks like it's had woodworm in its time,
0:03:12 > 0:03:16but how much character can a small, little place possibly have?
0:03:16 > 0:03:18Let's try and describe this.
0:03:18 > 0:03:23It's got solid stone walls, judging by the depth of that reveal there.
0:03:23 > 0:03:29You've got this front area here with a wooden floor and probably some kind of cellar underneath there,
0:03:29 > 0:03:35then this sort of amazingly characterful bit of step leading to the rear of the property
0:03:35 > 0:03:41where you've got this sort of, I don't know, amazing wood-burning cooker,
0:03:41 > 0:03:44more beams set into the plaster.
0:03:44 > 0:03:46Uhhh...
0:03:47 > 0:03:49Wow!
0:03:49 > 0:03:52# Speechless, speechless
0:03:52 > 0:03:54# That's how you make me feel... #
0:03:54 > 0:03:58It feels like you're stepping back in time with this cottage.
0:03:58 > 0:04:02There's no central heating, there's just a dirt floor at the back
0:04:02 > 0:04:06and at the moment, it feels rather dark and cramped.
0:04:06 > 0:04:12Surprisingly, upstairs, there seems to be more space than there is downstairs.
0:04:12 > 0:04:16You've got a fairly decent-sized loo and bathroom there,
0:04:16 > 0:04:20a little set of stairs which leads up to an attic area up there
0:04:20 > 0:04:26and then this is your one bedroom, but the fact that somebody has stripped away the ceiling in here,
0:04:26 > 0:04:31it gives it a real feeling of... I never thought I'd use this word, but space.
0:04:31 > 0:04:33Now, what would I do?
0:04:33 > 0:04:39Straight away, I'm thinking maybe you could create a sort of open-plan, mezzanine floor there,
0:04:39 > 0:04:42galleried perhaps, looking down on to this area?
0:04:42 > 0:04:48Create a bit of an extra bedroom there if you like, but not one that's separated out.
0:04:48 > 0:04:52And you've got yourself one heck of a charming property here, really.
0:04:52 > 0:04:58Yes, lots of work, yes, it's Grade Two listed, so you'll have to get approval for all sorts of things,
0:04:58 > 0:05:02but worth it? Oh, I think so!
0:05:03 > 0:05:09On second glance, I don't think there's enough ceiling height to make the attic a second bedroom
0:05:09 > 0:05:13and the attic stairs are too steep to meet building regulations.
0:05:13 > 0:05:20Also, you'd need to put in a roof light, something the Listed Building Officers might not be happy with.
0:05:20 > 0:05:25Well, at the rear of the property, the challenge is... They don't get any less to be honest.
0:05:25 > 0:05:30This is actually the rear door of the house. That little window, that's it.
0:05:30 > 0:05:35The rest of the stuff in this courtyard is other's people property.
0:05:35 > 0:05:39This is a shared courtyard, so you have access out the back,
0:05:39 > 0:05:45but when it comes to things like party walls, doing renovation work and not upsetting the neighbours,
0:05:45 > 0:05:51when it comes to just defining, when it comes to being a solicitor, who owns what,
0:05:51 > 0:05:53it's a nightmare!
0:05:53 > 0:05:57# Yeah, welcome to my nightmare Yea-eah... #
0:05:57 > 0:06:04So there are many calculations and a lot of work to do to this listed freehold cottage.
0:06:04 > 0:06:07With no kitchen in place, it's not going to be mortgageable either.
0:06:07 > 0:06:14But what is a nightmare and best avoided for one person can be a dream investment for another,
0:06:14 > 0:06:18especially at that relatively low guide price of 55,000 to 65,000.
0:06:18 > 0:06:21What does a local estate agent make of it?
0:06:21 > 0:06:23With it being Grade Two listed,
0:06:23 > 0:06:27there will be a need to speak to the conservation department,
0:06:27 > 0:06:30making sure that all works do comply.
0:06:30 > 0:06:35Structurally, we don't know. That would need to be looked at, but certainly a lot of work to be done.
0:06:35 > 0:06:39Once renovated, what could this let for?
0:06:39 > 0:06:43The rental income you could achieve once the house was finished
0:06:43 > 0:06:49would be between £475 per calendar month and maybe up to £550 per calendar month.
0:06:49 > 0:06:52And once done up to a good standard, what could it sell for?
0:06:52 > 0:06:58I do think it would be between £110,000 to £125,000.
0:06:58 > 0:07:04Let's be realistic. The fact it's falling to pieces inside will cause you problems.
0:07:04 > 0:07:07The fact it's Grade Two listed will cause you problems.
0:07:07 > 0:07:12No space on the road to stick a skip will cause you problems. I don't care. I love it!
0:07:12 > 0:07:16And I'm sure somebody loved it when it went under the hammer.
0:07:16 > 0:07:20Charming, mid-terrace, Grade Two listed house.
0:07:20 > 0:07:25Guide price here is 55 to 60. To start at 50,000 would be very nice.
0:07:25 > 0:07:29Straight away at 50. And 1? 50,000.
0:07:29 > 0:07:3251 I'm looking for... 51. And 52?
0:07:32 > 0:07:34And 52,000. And 53?
0:07:34 > 0:07:3853. And 54? 54. And 55...
0:07:38 > 0:07:4256. 56,000. 57, yeah?
0:07:42 > 0:07:4657. 58? 58,000. 59 now?
0:07:46 > 0:07:51I'll take a half if it helps you. Yeah, 58 and a half. 59 now?
0:07:51 > 0:07:54£59,000. 60 for knockout?
0:07:54 > 0:07:58It's with you at £59,000. Any advance on 59?
0:07:58 > 0:08:02Are we sure we're all done at £59,000?
0:08:02 > 0:08:04Are we quite sure we're all done?
0:08:05 > 0:08:08It's sold to you, £59,000.
0:08:08 > 0:08:11# You bought it, you bought it... #
0:08:11 > 0:08:16'That final bid of 59,000 came from Devon-based Charlotte.
0:08:16 > 0:08:19'She works part-time in a primary school
0:08:19 > 0:08:21'and is mum to George and Lily.
0:08:21 > 0:08:27'While the kids played, I found out more about her plans for this, her first property investment.'
0:08:28 > 0:08:32- Charlotte...- Hi. - Congratulations.- Thank you.
0:08:32 > 0:08:38- Wow! It's not your average house, is it?- No, no. I wasn't expecting to buy it, but I'm glad I have.
0:08:38 > 0:08:44- What do you mean?- I'd never been to an auction before and I was only going along to see what happened.
0:08:44 > 0:08:50But the bidding carried on and whizzed up and then came to a point and stopped just under my limit.
0:08:50 > 0:08:55- Oh.- So I put my hand up, knowing that if anybody else bid, that was me out, and nobody did.
0:08:55 > 0:08:57'That is how it works at auctions.
0:08:57 > 0:09:02'If you put your hand up, you've got to be prepared for the fact you might buy it.
0:09:02 > 0:09:08'Charlotte had viewed this cottage before the auction, but was in fact more interested in another,
0:09:08 > 0:09:12'but the low guide price for this one just proved too tempting.'
0:09:12 > 0:09:16- Have you done anything like this before?- Not on my own.
0:09:16 > 0:09:23I've done up an old cob farmhouse before and my parents have been in property renovation for a while.
0:09:23 > 0:09:28- But this is your first renovation project?- It is.- And your first auction purchase?- Yes.
0:09:28 > 0:09:32The expression "in at the deep end" springs to mind.
0:09:32 > 0:09:37A little bit, but at least I haven't got to do any ripping out in there. It's all done for me.
0:09:37 > 0:09:40- Blank canvas. - Looking on the bright side.
0:09:40 > 0:09:44Tell me what you're going to do with it, how you're going to sort it out.
0:09:44 > 0:09:49I'm not doing any major works in there. I want to leave the layout as it is.
0:09:49 > 0:09:53I'll put a ceiling back in the bedroom, just board that out.
0:09:53 > 0:09:57There is a second staircase up to the attic, so it would be an attic room,
0:09:57 > 0:10:02- but not an official second bedroom. - But you will open up the attic room?- Yes.
0:10:02 > 0:10:05New kitchen, obviously.
0:10:05 > 0:10:07Where is it going to go?
0:10:07 > 0:10:13The kitchen will fit in at the front there. I've already worked out we can squeeze everything in.
0:10:13 > 0:10:17One of the amazing things is all the wooden beams.
0:10:17 > 0:10:22- Will you retain those as much as possible?- Yes. They have already been treated for woodworm.
0:10:22 > 0:10:26It's all pretty sound in there. Structurally, it's fairly safe.
0:10:26 > 0:10:33'Charlotte has got a substantial budget of up to £20,000, including legal fees,
0:10:33 > 0:10:36'and a sensible timescale of six months.
0:10:36 > 0:10:41'She plans to do as much of the work herself as possible, bringing in trades for the skilled jobs.
0:10:41 > 0:10:48'She's also got two willing helpers in her children George and Lily, as I discovered.'
0:10:48 > 0:10:52- Lily, George, what do you think of the house?- It's good.
0:10:53 > 0:10:56We still think there needs work to be done.
0:10:56 > 0:11:00- Right.- It needs work done, but it's a nice house.
0:11:00 > 0:11:04- So tell me what you're going to do. - We are going to do quite a lot.
0:11:04 > 0:11:07We get to use a lot of tools, which will be quite fun.
0:11:07 > 0:11:10Lily, what are you going to do?
0:11:10 > 0:11:15Well, I might just help with putting some slate in the living room floor.
0:11:15 > 0:11:20She'll probably do a lot of the painting because girls are better at that.
0:11:20 > 0:11:24I'm better at the heavy jobs like lifting all the stones and digging out.
0:11:24 > 0:11:26# I can help
0:11:26 > 0:11:29# I've got two strong arms
0:11:29 > 0:11:31# I can help... #
0:11:32 > 0:11:36Well, for Charlotte's first auction purchase
0:11:36 > 0:11:39and first property renovation project,
0:11:39 > 0:11:43she could have chosen something slightly easier.
0:11:43 > 0:11:48Still, like me, she fell in love with the place and who can blame her?
0:11:48 > 0:11:51Hopefully, it'll all turn out all right.
0:11:51 > 0:11:53You can find out a little later in the show.
0:11:58 > 0:12:04This is Cranbrook, a gorgeous little town in Kent, half an hour from Royal Tunbridge Wells.
0:12:04 > 0:12:08Like many towns around the country, it used to have a train station
0:12:08 > 0:12:11and the property I'm here to see, just outside Cranbrook,
0:12:11 > 0:12:16owes its existence to the heady days of steam trains and branch lines.
0:12:16 > 0:12:22Back in the Victorian era, for every person who was excited about train travel,
0:12:22 > 0:12:28there were others who were sceptical about the noisy, dirty machines belching out smoke
0:12:28 > 0:12:32and so Cranbrook station ended up here in Hartley,
0:12:32 > 0:12:37a more isolated location, an impractical couple of miles down the road.
0:12:37 > 0:12:44It served a purpose for a number of years before sadly closing in the early 1960s
0:12:44 > 0:12:49and the property I'm here to see is a little piece of that industrial past,
0:12:49 > 0:12:53a railway worker's cottage in this lovely little terrace
0:12:53 > 0:12:57with three bedrooms and a guide price of 100,000 to 110,000.
0:12:57 > 0:12:59# Skip to my Lou, my darling... #
0:12:59 > 0:13:02If I've got a spring in my step,
0:13:02 > 0:13:06it's because the cottage itself looks a treat from the outside,
0:13:06 > 0:13:11but that lane I've just come down is full of potholes and in a really bad way.
0:13:11 > 0:13:16More on that later. Let's see what this place has to offer inside.
0:13:16 > 0:13:19First impressions are good.
0:13:19 > 0:13:23Clean, magnolia walls, new ceilings.
0:13:23 > 0:13:26Sadly, there's no features in here.
0:13:26 > 0:13:31It feels as though they've tried to make this look and feel like it's a new house.
0:13:31 > 0:13:34There could have been a few fireplaces dotted around.
0:13:34 > 0:13:37You can see here there's storage heaters.
0:13:37 > 0:13:41My guess is, because this house is so far down that lane,
0:13:41 > 0:13:44there isn't any gas mains here to connect up to,
0:13:44 > 0:13:46so I think that will put some people off.
0:13:46 > 0:13:50Quite a small kitchen, although there is the potential to go across.
0:13:50 > 0:13:55You could expand that, even open it out and bring it into this little room,
0:13:55 > 0:13:59but above all, I've got to say, not a bad start.
0:13:59 > 0:14:06The cottage used to belong to a housing association which explains the modern, serviceable look,
0:14:06 > 0:14:11so reinstating a few period features here and there wouldn't go amiss.
0:14:11 > 0:14:15Up the stairs and there are two good-sized double bedrooms
0:14:15 > 0:14:19and a bathroom which also could do with a spruce-up.
0:14:19 > 0:14:22Then upstairs again to the crowning glory -
0:14:22 > 0:14:26another great-sized double room with lovely views.
0:14:26 > 0:14:30Add in the decent-sized, if a tad overgrown, garden
0:14:30 > 0:14:36and I reckon you've got a lot of property for that 100,000 to 110,000 guide price.
0:14:37 > 0:14:39So I love this cottage,
0:14:39 > 0:14:43I love the guide price, but I'm less keen on this lane.
0:14:43 > 0:14:47OK, so you could argue it's a very rural location
0:14:47 > 0:14:52and some people may think it's nice not to arrive home on a piece of Tarmacked road.
0:14:52 > 0:14:55But this lane is bumpy, look. There's potholes.
0:14:55 > 0:15:01It would be very impractical in the harsh winters we've been having over the last few years.
0:15:01 > 0:15:05But worse than that, even if you are ready with your four by four
0:15:05 > 0:15:09and you love the idea of off-roading to get home, legally, you can't
0:15:09 > 0:15:14as the owner of the property doesn't actually have right of way along this track.
0:15:14 > 0:15:19Now, some of the houses do, but our lot doesn't. Bizarre!
0:15:19 > 0:15:25And since it's a bridleway, unless you're walking or you're riding your horse home after work,
0:15:25 > 0:15:28I would get this legal quirk sorted and fast.
0:15:33 > 0:15:39I would be trotting straight off to see a solicitor to get the access issue sorted out.
0:15:39 > 0:15:43If you don't, it could come back to bite you when you try and sell the cottage on.
0:15:46 > 0:15:50We asked an estate agent to tell us what he makes of the cottage,
0:15:50 > 0:15:52muddy, holey lane and all.
0:15:53 > 0:15:55I think it's a good property.
0:15:55 > 0:15:58I think it's got a lot of potential. It's a great spot
0:15:58 > 0:16:01and it's got more accommodation than I thought when I drove up.
0:16:01 > 0:16:04What about the access issues?
0:16:04 > 0:16:11It depends, actually, if there's a legal problem with maintenance, if you have to spend money on the lane.
0:16:11 > 0:16:14But if you spent the right money, it would be improved.
0:16:14 > 0:16:20Fair enough, but at the moment, you can't legally drive up it in your car, let alone maintain it.
0:16:20 > 0:16:25So what could the cottage sell for, once renovated?
0:16:25 > 0:16:30Without too much spent on it, it could well be worth 175,000.
0:16:30 > 0:16:32How about as a rental?
0:16:32 > 0:16:35In good condition,
0:16:35 > 0:16:38I would have thought £550, £600 a month.
0:16:40 > 0:16:44This old station worker's cottage is an extremely exciting lot -
0:16:44 > 0:16:51a Victorian house in a very desirable, rural location with a low, low guide price.
0:16:51 > 0:16:55I can't wait to see who spotted this at the auction.
0:16:56 > 0:16:59What are you going to say for this one to start me?
0:16:59 > 0:17:02Coming in at £100,000? £100,000 I'm looking for.
0:17:02 > 0:17:05Give me 90 then? 90,000?
0:17:05 > 0:17:10£90,000, right in the middle. 92 I want. 92 bid, I've got on my right.
0:17:10 > 0:17:1494 to the original bidder. And 6 now? 96. And 8 if you like?
0:17:14 > 0:17:1898 I have. Put it up to 100?
0:17:18 > 0:17:2199 I'm bid. Now 100.
0:17:21 > 0:17:23And 101 if you like?
0:17:23 > 0:17:26101 do I see? 1, I've got.
0:17:26 > 0:17:28And 2. 102. And 3?
0:17:28 > 0:17:33No? At £102,000 bid, I've got. And 3 I'm looking for now...
0:17:33 > 0:17:36At 102 then on the back line for the first time...
0:17:36 > 0:17:38102 for the second time...
0:17:38 > 0:17:42Third and final time at £102,000 bid, all done?
0:17:42 > 0:17:46Sold at 102 and it's D201. Thank you.
0:17:46 > 0:17:51'That successful bid of 102,000 came from Matt.
0:17:51 > 0:17:57'Matt and his dad Peter live locally. And like father, like son, they're both carpenters.'
0:17:57 > 0:18:01# I'm on the top of the world, looking
0:18:01 > 0:18:07# Down on creation and the only explanation I can find... #
0:18:07 > 0:18:10'I met the two of them back at the cottage
0:18:10 > 0:18:14'to see what this chippy off the old block has in store for it.'
0:18:14 > 0:18:17Matt and Peter, lovely to meet you both today.
0:18:17 > 0:18:22- And you, Lucy.- I'd like to call this house "bargain of the century".
0:18:22 > 0:18:28- It's pretty good. I quite like this one.- £102,000? What's the story behind you wanting to bid for this?
0:18:28 > 0:18:34I really like the area and there was the two of them, this one and next door, I was going to go for.
0:18:34 > 0:18:37At the last minute, the finances fell through,
0:18:37 > 0:18:42so I ended up getting this one at what I thought to be a bargain price
0:18:42 > 0:18:45and yeah, it really paid off.
0:18:45 > 0:18:49Matt's your son. Peter, what will your involvement be and what has it been?
0:18:49 > 0:18:52I've guided him through his life so far, so...
0:18:52 > 0:18:55No, he's his own man.
0:18:55 > 0:19:00We've got a bit of finance involved in the property, like,
0:19:00 > 0:19:02but it's mainly Matt's project,
0:19:02 > 0:19:05so he'll be doing the majority of the work.
0:19:05 > 0:19:08- Do you still live at home? - I do, actually.
0:19:08 > 0:19:14Dad owns a farm, so it's a bit like a playground for me. I've got a load of space to do as and what I please.
0:19:14 > 0:19:17So it makes sense to stay there, really.
0:19:17 > 0:19:19- You're not silly!- Not silly at all.
0:19:19 > 0:19:23'It sounds as though Matt has his head screwed on.
0:19:23 > 0:19:28'He has recently sold one property and plans to build up a portfolio and rent them out.
0:19:28 > 0:19:32'And this cottage, well, settling on it was plain sailing.'
0:19:32 > 0:19:38I like this one in particular cos I sold my other one and that was a Victorian house as well.
0:19:38 > 0:19:41This is built within the same five years of that one.
0:19:41 > 0:19:46I really like the build of Victorian houses. They look good, they're built well.
0:19:46 > 0:19:53It's in a nice country location, so there's not really anything that's a downside on it. I love it.
0:19:53 > 0:19:57It doesn't have that much character, considering it's Victorian.
0:19:57 > 0:20:02- No.- It seems as though somebody has come in and tried to make it look and feel like a new build.
0:20:02 > 0:20:09Yeah, very much so with the very neutral colours, the bland doors, and all the double glazing, the UPVC.
0:20:09 > 0:20:11Yeah, it takes the edge off it.
0:20:11 > 0:20:16We was hoping to introduce a bit of hardwood, give it a bit of character.
0:20:16 > 0:20:18Guys, that's your thing, isn't it?
0:20:18 > 0:20:25- It's what we do.- If you had a wish list, what would you like to do to this to give it some character?
0:20:25 > 0:20:28Perhaps open the doorway behind you,
0:20:28 > 0:20:30perhaps we could enlarge that.
0:20:30 > 0:20:34Hardwood hand-rails, newel posts.
0:20:34 > 0:20:39And of course, reopen the fireplace in the other room, put a new fireplace in.
0:20:39 > 0:20:43Just make it a lot more character than it is now.
0:20:43 > 0:20:48'Sounds promising. Let's hope that Peter can keep his son's feet on the ground here
0:20:48 > 0:20:51'because Matt went to town on his last renovation.
0:20:51 > 0:20:57'He planned to keep it for a long time, but ended up selling it sooner than he had expected.'
0:20:57 > 0:21:00So are you going to learn from your previous mistake?
0:21:00 > 0:21:05Yeah, the last one I invested heavily in and really went to town on it
0:21:05 > 0:21:10cos I thought I was going to keep it for 20 years, but in the end, I had it for five years
0:21:10 > 0:21:12and then let her go.
0:21:12 > 0:21:16I fancy doing another project. I like the project side of things.
0:21:16 > 0:21:22This one's cheap enough, I can buy it, keep it and I plan to buy the others at a later stage,
0:21:22 > 0:21:26so I've got my projects, yet I still get to retain this one.
0:21:26 > 0:21:30Hold on. Are you planning on buying this whole row of terraces?
0:21:30 > 0:21:32In an ideal world, yeah.
0:21:32 > 0:21:40'Well, good on Matt for aiming high, but he's starting off quite modestly with a 10,000 budget
0:21:40 > 0:21:44'and a one-to-two-month schedule to bring the cottage up to scratch,
0:21:44 > 0:21:50'but there is still one muddy issue that could be a stumbling block - that lane and all those potholes.'
0:21:50 > 0:21:56The main thing came down to the access. We read through the legal packs, viewed it a couple of times,
0:21:56 > 0:22:00and just went to town on that side. The only thing is the access.
0:22:00 > 0:22:04Hopefully, by the time we're done, everything will be smoothed out.
0:22:04 > 0:22:09- But you would be trespassing if you came down this road? - With a vehicle, I would be.
0:22:09 > 0:22:14If I come on a horse, because it's a byway, I'm allowed to come by horse.
0:22:14 > 0:22:17And I think there's even something in there by boat.
0:22:17 > 0:22:22I bet you your new owners or tenants will not turn up on horseback or even on a bike!
0:22:22 > 0:22:27You don't know, the way the euro's going. We might all be on horseback!
0:22:27 > 0:22:32You have bought this with a bit of a risk attached. That's why it went to auction.
0:22:32 > 0:22:36My advice would be to get on the case, get all the paperwork you need
0:22:36 > 0:22:39and if you get all those ticks in the right boxes,
0:22:39 > 0:22:43for £102,000, you would have done incredibly well on this property.
0:22:43 > 0:22:47Yeah, I really do. The solicitors have no problem.
0:22:47 > 0:22:54They see it being a bit of a walk in the park, to be honest, so I can't see it being too much of a problem.
0:22:54 > 0:22:58It'll be interesting to see what you do. Good luck with it.
0:22:58 > 0:23:03- Thank you.- Lovely to meet you, Peter. - And you, Lucy.- Good luck. - Cheers.- Thanks.
0:23:03 > 0:23:09So Matt wants to get his teeth into a new project and a great project this is too if you ask me.
0:23:09 > 0:23:12That lane is a real worry when you come to sell,
0:23:12 > 0:23:17but clear up the muddy access issues and this house could be a genuine bargain.
0:23:17 > 0:23:22Find out how it goes and if he owns more of the lane later in the show.
0:23:23 > 0:23:29'Coming up, with a history of mining in the area, it's best to tread carefully in this Stoke house.'
0:23:29 > 0:23:32The house could be sitting right on the top of it.
0:23:33 > 0:23:39'In Kent, did Matt and Peter get competitive with their carpentry during the renovation?'
0:23:39 > 0:23:44He's catching me up. I don't know if I'm getting worse or he's getting better.
0:23:44 > 0:23:51'But first in Devon, has work on Charlotte's two-bed cottage taken longer than expected?'
0:23:51 > 0:23:54Working on my own, it has taken a lot longer.
0:23:56 > 0:24:00'Let's make our way back to Crediton in Devon
0:24:00 > 0:24:04'and this centuries-old Grade Two listed cottage.
0:24:05 > 0:24:09'Inside, you might have expected a little rural charm,
0:24:09 > 0:24:12'but unfortunately, it was more run-down than rustic.
0:24:18 > 0:24:23'The one-bedroom property had a guide price of between £55,000 and £65,000.
0:24:23 > 0:24:28'It was purchased at auction by Charlotte for 59,000.
0:24:31 > 0:24:37'She works part-time at a local school and is mum to Lily and George.
0:24:38 > 0:24:42'This was to be her first investment property development.'
0:24:42 > 0:24:47- This is your first renovation project and your first auction purchase?- Yes.
0:24:47 > 0:24:51- The expression "in at the deep end" springs to mind.- A little bit.
0:24:51 > 0:24:55But at least I haven't got to do any ripping out in there.
0:24:56 > 0:25:00Charlotte planned to carry out the majority of the work herself
0:25:00 > 0:25:03with some small helping hands from George and Lily.
0:25:03 > 0:25:08But this little cottage was a steep learning curve for Charlotte.
0:25:09 > 0:25:14Nearly eight and a half months later, we're back.
0:25:14 > 0:25:17# But there's a first time for everything
0:25:17 > 0:25:23# Since you said goodby-y-ye
0:25:23 > 0:25:26# There's not much of anything
0:25:26 > 0:25:31# I haven't tri-i-ied... #
0:25:31 > 0:25:37It's progressed slower than I hoped it would, but it has been a big learning curve.
0:25:37 > 0:25:43I'm pleased I'm getting to a stage where every day I spend here, I can see a difference at the end of it,
0:25:43 > 0:25:45so I'm on the final bit.
0:25:49 > 0:25:53She is slowly but surely bringing this cottage back to life.
0:25:54 > 0:25:57I've been doing an awful lot of work myself.
0:25:57 > 0:26:01I've had electricians, plumbers and a plasterer in,
0:26:01 > 0:26:05but beyond that, all the work I've done has been me.
0:26:05 > 0:26:09# She's a hard-working woman
0:26:09 > 0:26:12# If you only knew... #
0:26:13 > 0:26:19This has been no quick lick of paint makeover. It's been hard labour.
0:26:21 > 0:26:25Trying to put the ceiling joists in, just me by myself,
0:26:25 > 0:26:30it would have been quite a quick job if I had somebody holding the other end of the timbers,
0:26:30 > 0:26:34but working on my own, it has taken a lot longer.
0:26:34 > 0:26:39# What I like about that woman, she won't quit until the job is through... #
0:26:39 > 0:26:44Charlotte has done the renovations when not working or caring for her children.
0:26:45 > 0:26:51And so far, I'm really impressed. What about the bedroom without the ceiling?
0:26:53 > 0:26:56It seems she has taken that in her stride too.
0:26:56 > 0:27:02This is the room probably with the biggest change because, if you recall, there was no ceiling in here.
0:27:02 > 0:27:06You were looking up to the underside of the slate tiles.
0:27:06 > 0:27:11So, putting the ceiling in, stripping all the wallpaper off, redecorating,
0:27:11 > 0:27:15I'm really pleased with the size of the room, now it's all cleared out.
0:27:15 > 0:27:18I just need a carpet in here and this one's nearly finished.
0:27:18 > 0:27:22Charlotte decided not to go through building regulations
0:27:22 > 0:27:25to convert the mezzanine level in the roof space,
0:27:25 > 0:27:30but to keep things simple and use it as a handy storage area.
0:27:31 > 0:27:35I love the texture and rolling lines of the plasterwork
0:27:35 > 0:27:40and how Charlotte has kept the odd little treasure from the original property.
0:27:40 > 0:27:47The doors, like the rest of the woodwork, will look stunning scrubbed and sanded as she intends.
0:27:48 > 0:27:53She had a £20,000 budget, so has she managed to stay within that?
0:27:53 > 0:27:57So far I've spent just over 10,000.
0:27:57 > 0:28:04There's still a few bills to come in, but I'm pretty confident I'm going to come in under a budget.
0:28:04 > 0:28:06I think my budget was quite high
0:28:06 > 0:28:11because I included in that the purchase of all my tools.
0:28:11 > 0:28:15I had no tools. I had a hammer and a screwdriver when I started this,
0:28:15 > 0:28:19so I've amassed more of a collection now.
0:28:19 > 0:28:23Charlotte has no foreseeable further big outlays
0:28:23 > 0:28:28as she has already purchased the kitchen units which are still to be fitted.
0:28:28 > 0:28:34Add her spend so far of just over £10,000 to her purchase price of £59,000
0:28:34 > 0:28:40and Charlotte's likely to have a total investment of around £70,000 once she's finished.
0:28:40 > 0:28:44What about her kids? Did they lend a hand?
0:28:44 > 0:28:48They haven't been down here as much as they originally hoped.
0:28:48 > 0:28:53But they did come down on Saturday and paint the bathroom wall so they have done their bit now.
0:28:53 > 0:28:57And a great job they made of it, too.
0:29:02 > 0:29:06We asked two local estate agents for their opinion on this cottage.
0:29:06 > 0:29:10It's a really nice little cottage. Lots of character to it.
0:29:10 > 0:29:13Lots of exposed beams and timbers.
0:29:13 > 0:29:17Obviously downstairs is a little small,
0:29:17 > 0:29:20but the upstairs is nice and the bathroom.
0:29:20 > 0:29:26The things I like are the original stonework and a lot of exposed woodwork within the property,
0:29:26 > 0:29:29which all add extra detail to it.
0:29:29 > 0:29:35When the renovation's complete, how much could this property achieve on the rental market?
0:29:37 > 0:29:40It's likely to rent for £550 per calendar month.
0:29:40 > 0:29:48I believe a realistic and achievable rental figure for the house would be £500-£550 per calendar month.
0:29:48 > 0:29:55Those valuations, if realised, would give Charlotte a rental yield of between 8½% and 9½%.
0:29:56 > 0:30:01However, she intends to sell the cottage when complete,
0:30:01 > 0:30:05so bearing in mind her total investment of around £70,000,
0:30:05 > 0:30:09what sale valuation would the estate agents give?
0:30:09 > 0:30:14The marketing price would be between £100,000 and £110,000.
0:30:14 > 0:30:20We'd probably market the property at about £110,000 and would achieve probably £100,000-£105,000.
0:30:20 > 0:30:27That's a potential pre-tax profit of between £30,000 and £40,000, minus the usual selling expenses.
0:30:27 > 0:30:31- Is Charlotte happy with that? - That's very good.
0:30:31 > 0:30:34Really pleased with those valuations.
0:30:36 > 0:30:41Charlotte was a property developing novice when she started this renovation,
0:30:41 > 0:30:47but I'm sure the skills she's learnt will stand her in good stead for future projects.
0:30:47 > 0:30:53I really admire the determination and optimism she's retained throughout the process,
0:30:53 > 0:30:57but will she be so hard on herself next time round?
0:30:57 > 0:31:03Perhaps the next property I buy will be redecoration and a new kitchen and bathroom.
0:31:03 > 0:31:07And not quite such a major project as this.
0:31:07 > 0:31:13But I've learnt a lot of lessons along the way and I still really love this little house.
0:31:17 > 0:31:21I'm in Stoke on Trent in Staffordshire,
0:31:21 > 0:31:24famous for its ceramic heritage.
0:31:24 > 0:31:29But it's also the birthplace of Reginald Mitchell, who designed the Spitfire,
0:31:29 > 0:31:34the plane which helped win the Battle of Britain. The city have erected a statue in his honour
0:31:34 > 0:31:36and quite rightly so.
0:31:38 > 0:31:42So let's hope today's property is also a high flyer.
0:31:42 > 0:31:46The property I'm here to see sounds really interesting.
0:31:46 > 0:31:48It's a three-bedroom mid-terrace.
0:31:48 > 0:31:53What's interesting is the guide price - £29,000.
0:31:53 > 0:31:58Now, similar properties around these parts have sold recently for around £50,000,
0:31:58 > 0:32:02so what's the catch? Let's find out.
0:32:02 > 0:32:06Double-glazed front door, double-glazed throughout. Good news.
0:32:06 > 0:32:11Fairly standard layout. Through the front door up to your bedrooms. Three bedrooms, as I said.
0:32:11 > 0:32:16Nothing untoward yet. Into your front living room area.
0:32:16 > 0:32:20It's nice that you've got a door in-between the front door and this.
0:32:20 > 0:32:27A feature fireplace. You'd probably want to replace that with something a little 2012.
0:32:27 > 0:32:33Then through to the rear of the property is a kitchen and, yes, it's used, isn't it?
0:32:33 > 0:32:35Very well used.
0:32:35 > 0:32:40Yes, a bit of money spent in here, that would be money well spent.
0:32:40 > 0:32:45One slight downside. Off there is the only loo and bathroom in the property.
0:32:45 > 0:32:50So is that the reason why it's so cheap? No. The kitchen?
0:32:50 > 0:32:51Nope.
0:32:51 > 0:32:58Something a bit more serious because the legal pack contains information on the mining report.
0:32:58 > 0:33:03This whole area of Stoke on Trent obviously has a history of mining
0:33:03 > 0:33:08and it's really important if you're buying a house in this area that you check out that mining report.
0:33:08 > 0:33:16It turns out that there is a mineshaft in this vicinity and the house could be on top of it.
0:33:16 > 0:33:22Now that may not concern you, but it would certainly concern somebody who was going to lend money on it,
0:33:22 > 0:33:26like a mortgage. So you'd basically have to buy this place with cash.
0:33:26 > 0:33:32And if you only found out at the auction or after you'd bought it, it could be a real problem.
0:33:32 > 0:33:35Now I think we should move swiftly on.
0:33:38 > 0:33:41Yes, I'm going to have to tread carefully around this house,
0:33:41 > 0:33:48though not as carefully as any future purchaser will have to, considering that mining report.
0:33:48 > 0:33:54But putting that huge sticking point to one side, the property as it goes has a good layout.
0:33:54 > 0:33:58'Upstairs, there are three standard-sized bedrooms.
0:33:58 > 0:34:04'And could you move that bathroom upstairs? Well, perhaps not, 'unless you want to lose a bedroom.
0:34:04 > 0:34:10'So it's best to keep it on the ground floor. What has the back garden got to offer?'
0:34:10 > 0:34:15So great excitement as you come out of the rear of the property and this lean-to affair.
0:34:15 > 0:34:21And then the garden... but there's something in the way. This brick building is right here.
0:34:21 > 0:34:26It means it's terribly cramped so this has to go.
0:34:26 > 0:34:28Oh, yes.
0:34:28 > 0:34:35'Really, this block of bricks is the stumbling block to a good view to the garden. So get rid of it,
0:34:35 > 0:34:39'have a general tidy up and you could create a pleasant little space out the back.
0:34:39 > 0:34:45'So with that low guide price explained by the mining in the area,
0:34:45 > 0:34:49'what does a local estate agent think are the prospects here?'
0:34:49 > 0:34:54Stoke on Trent is a mining area and we do understand that there are two mine entries
0:34:54 > 0:35:01within quite close proximity, which can affect mortgageability and the eventual sell-on price.
0:35:01 > 0:35:06How would a negative mining report affect the resale value?
0:35:06 > 0:35:10On the basis that the property may not be mortgageable,
0:35:10 > 0:35:15I would advise the ceiling price would be in the region of £45,000-£50,000.
0:35:15 > 0:35:22If the mining report was positive and the property mortgageable, what would the value be then?
0:35:22 > 0:35:26We can see resale value in the region of £60,000-£65,000.
0:35:26 > 0:35:29What could the place let for?
0:35:30 > 0:35:36Rental income for this property would be in the region of £400 per calendar month.
0:35:36 > 0:35:40Well, potentially double-digit returns on the rental,
0:35:40 > 0:35:45but you've got to overcome that whole issue of the mining report.
0:35:45 > 0:35:51And if you stumbled into the auction and didn't read the legal pack, and then tried to get a mortgage,
0:35:51 > 0:35:56you would be in big trouble. So hopefully whoever bought it did read the legal pack.
0:35:56 > 0:36:00Let's find out who that was when it went under the hammer.
0:36:03 > 0:36:06Lot 56. What's this? 25?
0:36:06 > 0:36:11Can we start it at 20? 20 bid, seated at the back. £20,000.
0:36:11 > 0:36:1421, anywhere? At 20,000. 21.
0:36:14 > 0:36:1722.
0:36:17 > 0:36:2023. 24, sir? 24.
0:36:20 > 0:36:2125.
0:36:21 > 0:36:2426. 27.
0:36:25 > 0:36:2728. 29.
0:36:27 > 0:36:2930.
0:36:29 > 0:36:3130 and a half.
0:36:31 > 0:36:3531. 31 and a half.
0:36:35 > 0:36:3732? 32.
0:36:38 > 0:36:43No? At 32,000. Still on the back row at £32,000.
0:36:43 > 0:36:47All done now? First time at 32, then.
0:36:47 > 0:36:4932 and a half. 33, sir?
0:36:49 > 0:36:52Yep. 33.
0:36:52 > 0:36:57Sure? You're out? OK, 33. Not going to linger. For the first time.
0:36:57 > 0:37:0333,000 for the second time. Third and final time, £33,000. Your lot, sir.
0:37:03 > 0:37:07- Well done.- It was Shaz who bought this lot for £33,000.
0:37:07 > 0:37:12His parents bid on his behalf as he couldn't make it to the auction.
0:37:12 > 0:37:17Shaz is 22 years old and in his second year at Manchester Business School
0:37:17 > 0:37:23studying Business Management. Property developing is a sideline venture for him and his family.
0:37:23 > 0:37:28I met him back at his purchase to find out what he planned for it.
0:37:28 > 0:37:33- Shaz, good to meet you.- And you. - Congratulations. Tell me why you wanted this place.
0:37:33 > 0:37:37We've got other properties around this area
0:37:37 > 0:37:41- and we thought this would add value to our existing portfolio.- Great.
0:37:41 > 0:37:46- Why have you invested around here? - Tenants are pretty easy to find
0:37:46 > 0:37:52and with the price that we've paid, hopefully the work we will do, it's going to net a good yield.
0:37:52 > 0:37:58- So is this a family business?- Yes. - How long have you been doing it? - My father's done it a good few years
0:37:58 > 0:38:06- and hopefully I can follow in his footsteps.- In terms of your involvement?- A few years as well.
0:38:06 > 0:38:10'Well, Shaz is nothing if not busy. Not only is he studying,
0:38:10 > 0:38:16'but he also finds time to manage a fast food outlet and run a marketing company.
0:38:16 > 0:38:21'I hope he actually has time to get this place sorted out.'
0:38:21 > 0:38:26There's quite a lot of things to be done. We'll have the kitchen redone.
0:38:26 > 0:38:30All paint, paper, everywhere decoration, sort out the garden.
0:38:30 > 0:38:34New slabs in the front. We'll do the bathroom as well.
0:38:34 > 0:38:38The property just requires a bit of love and affection.
0:38:38 > 0:38:44- So it'll get that. Now there is a bit of an issue regarding the mines.- Yes.
0:38:44 > 0:38:51- What do you know about that? - We found there's two mineshafts pretty much directly under it.
0:38:51 > 0:38:53- Ooh!- Yeah, exactly.
0:38:53 > 0:38:59So hopefully we shall be all right. I was thinking... We only took the keys yesterday.
0:38:59 > 0:39:05So tomorrow I'm going to ring the solicitor and see if we can get an interpretive report
0:39:05 > 0:39:09from the Coal Authority and if it's been capped off in the proper way
0:39:09 > 0:39:15we might be able to remortgage it or, if we go to sell the property, someone else can get a mortgage.
0:39:15 > 0:39:20- Were you aware of the issues before you bought it?- To be honest, no.
0:39:20 > 0:39:26- Eeew!- But it was OK because, if the worst comes to the worst, we'll end up renting it out.
0:39:26 > 0:39:28If I'm getting a 10%-12% yield, I'm happy.
0:39:28 > 0:39:34- But had you been relying on getting mortgage finance...- Yes, had we. - ..you'd have been in a pickle.
0:39:34 > 0:39:41Yes, in a bit of a bother. But hopefully we had the resources to get it, so we're fine.
0:39:41 > 0:39:47- I wouldn't buy from auction if I was relying on that.- Do you think that's why you got a fairly decent price?
0:39:47 > 0:39:53Exactly, yeah. We were, I think, another £2,000 I would have gone, but nothing more than that.
0:39:53 > 0:39:59I think it's worth what we paid and if we can stick to our budget we'll be all right.
0:39:59 > 0:40:05- So how much are you going to spend sorting it out?- Hopefully, we're looking to spend £6,000-£8,000
0:40:05 > 0:40:10and that includes quite a lot of work. We won't do anything cheap.
0:40:10 > 0:40:17We'll make sure we stick to good quality. It's happy faces we like to see when tenants are moving in.
0:40:17 > 0:40:22# Shiny happy people holding hands
0:40:22 > 0:40:26- #- Shiny happy people holding hands
0:40:26 > 0:40:29# Shiny happy people laughing... #
0:40:29 > 0:40:34And Shaz will be smiling if he manages to turn this property round in four weeks.
0:40:34 > 0:40:37What he does may depend on the mining report.
0:40:37 > 0:40:45If it's positive and the mines have been capped, then Shaz may sell on, if someone makes him a good offer.
0:40:45 > 0:40:50Otherwise it will join his portfolio of rental properties, but whatever he decides
0:40:50 > 0:40:56will be run past his parents because his hard work ethic and the decisions he makes in life
0:40:56 > 0:41:03- are inspired by them.- My father said, "You've two choices - work hard now and relax later in life
0:41:03 > 0:41:10"or relax now, do what your friends are doing, and have a hard life later on working all the time."
0:41:10 > 0:41:14- So I thought I'd pick the first option.- Great. How's it going?
0:41:14 > 0:41:19- Yeah, it's all right. Hopefully we'll see what happens.- Good advice.
0:41:19 > 0:41:21What's next on the agenda for you?
0:41:21 > 0:41:28Hopefully we'll be back in the auction and see what happens. Or if there's anything privately.
0:41:28 > 0:41:32- Brilliant. Congratulations. Good luck with it.- Thanks, Martin.
0:41:32 > 0:41:34Cheers. Thank you.
0:41:34 > 0:41:38Well, Shaz getting some good advice from his dad there.
0:41:38 > 0:41:43In terms of this property, well, yes, £6,000-£8,000 is tight,
0:41:43 > 0:41:48but the biggest thing by far is that whole mining report issue.
0:41:48 > 0:41:53You stand here very gingerly wondering will it be here when we come back.
0:41:53 > 0:41:55You can find out later in the show.
0:41:57 > 0:42:02Now time has passed, let's see what has happened to those properties.
0:42:02 > 0:42:08- Are we confident they will look brand-new or at least radically different?- Let's find out!
0:42:10 > 0:42:17We return to Cranbrook in Kent now where earlier this Victorian cottage sold at auction for £102,000.
0:42:17 > 0:42:23It was bought by Matt, a carpenter, along with his father, Peter, also a chippy.
0:42:23 > 0:42:27He planned to give the place a major overhaul.
0:42:27 > 0:42:34Despite everything being presentable, it lacked one important ingredient - charm.
0:42:34 > 0:42:38Somebody's tried to make it look and feel like a new-build.
0:42:38 > 0:42:43- Very much so. Very neutral colours, the bland doors.- Yeah.
0:42:43 > 0:42:48It takes the edge off it. We'll introduce some hardwood.
0:42:48 > 0:42:51Just make it a lot more character than it is now.
0:42:51 > 0:42:58The property was formerly a railway worker's cottage, so Matt and Peter planned to steam in
0:42:58 > 0:43:05and get this place back on track in two months. But it was 6½ months later when we returned
0:43:05 > 0:43:09to see if they'd done a first-class renovation or had hit the buffers.
0:43:09 > 0:43:14Well, the property is looking very good from the outside
0:43:14 > 0:43:18with a new drive, but how is it shaping up inside?
0:43:30 > 0:43:32What an incredible difference!
0:43:32 > 0:43:37No longer bland and boring, but gorgeous and grand.
0:43:43 > 0:43:48We met up with Matt and Peter who took us through the big changes.
0:43:52 > 0:43:56The kitchen used to be in a small room tucked away,
0:43:56 > 0:44:02but now we've brought it out, integrated it into the rest of the house, nice and open-plan.
0:44:02 > 0:44:07It was quite small, but now where the kitchen was we have the shower room and downstairs WC.
0:44:07 > 0:44:14And next to it, the utility. Back here, we've opened it up, lost the Artex off the ceiling.
0:44:14 > 0:44:18We've put the cornice up. We've used hardwood for the worktops, the skirting.
0:44:18 > 0:44:23Open the doors and you've got a nice family room flowing through.
0:44:23 > 0:44:30Everything's worked out pretty nice. The floors keep the continuity throughout, inside and outside.
0:44:30 > 0:44:33So I'm really impressed.
0:44:33 > 0:44:36And there's more to be impressed by upstairs.
0:44:36 > 0:44:44The main bedroom was decorated and renovated in soft, neutral tones. Look at those gorgeous floorboards!
0:44:44 > 0:44:49And it's been given a new fireplace, a very attractive focal point.
0:44:50 > 0:44:56Meanwhile, the small bedroom and bathroom have both been renovated to a good standard.
0:44:59 > 0:45:06And at the top, the loft room has been stripped out, insulated and brought up to fire regulations.
0:45:06 > 0:45:09On top of that, it also looks pretty good, too.
0:45:09 > 0:45:13Everything's trying to keep that Victorian feel flowing through
0:45:13 > 0:45:19because it was a very good era, they built things very well and it works.
0:45:19 > 0:45:24- If we can bring that back, all the better. - I'd say you've been successful!
0:45:24 > 0:45:29But what really stands out for me is the quality and finish of the woodwork.
0:45:29 > 0:45:34Matt and Peter's carpentry skills have added an extra layer of craftsmanship.
0:45:34 > 0:45:41We introduced quite a bit of hardwood. The skirting and handrail and the double doors and that.
0:45:41 > 0:45:44I reckon it shows the place up quite nice.
0:45:44 > 0:45:49But it's not just the inside that's been given a new lease of life.
0:45:49 > 0:45:54- The outside also has its own particular charm. - I really like the garden.
0:45:54 > 0:45:59Keeping the Victorian feel, cottage garden. It's not much to work with,
0:45:59 > 0:46:03but it was so bad that anything that was done made it look better.
0:46:05 > 0:46:09I like this room, actually. It's nice and cosy.
0:46:09 > 0:46:13You can see yourself sitting here with the log fire going,
0:46:13 > 0:46:19a few books and a glass of port. Feet up. It would be quite cosy.
0:46:19 > 0:46:24It's bee a great job all round, but there's still one nagging issue -
0:46:24 > 0:46:30- the right of access to the front door.- This property didn't come in the title deeds with access
0:46:30 > 0:46:36because it's a bridle way, so what we've done is get a piece of legal documentation
0:46:36 > 0:46:43that allows us to still use it. If there are any problems, they can take hold of it from their side.
0:46:43 > 0:46:50Matt now feels confident that this will sort out any future problems with the owners of the lane.
0:46:50 > 0:46:57Their two-month schedule overran by 4½ months, but that was down to being involved in another job.
0:46:57 > 0:47:00The house itself was completed in 3½ months
0:47:00 > 0:47:05with plasterers called in to do the entire house and electricians when needed.
0:47:05 > 0:47:11Matt did 90% of the work with Peter chipping in and Mum painting.
0:47:11 > 0:47:17Still, with the future of the property undecided and Matt's determination to do a top-notch job,
0:47:17 > 0:47:20time wasn't a consideration.
0:47:20 > 0:47:24- The same can't be said for the ten grand budget. - We've gone over that.
0:47:24 > 0:47:31We're probably up around the 22 mark, 23, including the labourers and all the legal fees.
0:47:31 > 0:47:35It's gone over, but I'm still happy we got a better product at the end.
0:47:37 > 0:47:43Add that possible outlay of £23,000 to their £102,000 purchase price
0:47:43 > 0:47:48and Matt's total spend is around £125,000, all included.
0:47:48 > 0:47:51But is it money well spent?
0:47:51 > 0:47:57Time to ask two local estate agents what they think of Matt and Peter's hard work.
0:47:57 > 0:48:01I can't believe it. They've done a fantastic job.
0:48:01 > 0:48:05Inside and out. Brilliant.
0:48:05 > 0:48:10My first impressions of this property are really good. They've done a terrific job.
0:48:10 > 0:48:15It's full of character. It's a delightful property.
0:48:15 > 0:48:19But would the possible returns and profit delight Matt?
0:48:19 > 0:48:25Bearing in mind his total investment of around £125,000, what could a resale achieve?
0:48:25 > 0:48:30I would expect to achieve somewhere between £170,000 and £180,000.
0:48:30 > 0:48:36We'd expect to achieve in the region of £175,000. Maybe more, maybe £180,000.
0:48:36 > 0:48:41I think that's about right. A little low, but about right. Not too far off, really.
0:48:41 > 0:48:48Those valuations of between £170,000 and £180,000 could see a potential pre-tax profit,
0:48:48 > 0:48:53minus expenses, of around £45,000-£55,000.
0:48:53 > 0:48:56But would the rental returns be a better bet?
0:48:56 > 0:48:59If I were to seek a tenant for this property,
0:48:59 > 0:49:04I would expect them to pay in the region of £750-£800 per calendar month.
0:49:04 > 0:49:10Rental, I would have thought... £750, £800 a month.
0:49:10 > 0:49:16Those rental valuations could give Matt an attractive annual yield of 7%-8%.
0:49:16 > 0:49:22Not bad. And the future for this place? Well, having worked so hard on it, Matt's decided
0:49:22 > 0:49:27to move in for the next few months before deciding what to do next.
0:49:27 > 0:49:30One thing's for sure - Matt and Peter will be working together,
0:49:30 > 0:49:35though who will be the boss is open to debate.
0:49:35 > 0:49:41I say he's catching me up, but I don't know if I'm getting worse or he's getting better.
0:49:41 > 0:49:43We'll see.
0:49:45 > 0:49:51We head back now to Stoke on Trent and this three-bedroom terraced house,
0:49:51 > 0:49:56bought at auction for £33,000 by Shaz.
0:49:56 > 0:50:01He's 22 years old and is stepping into the family business of property developing
0:50:01 > 0:50:04after some wise advice from his dad.
0:50:04 > 0:50:10"You've got two choices - work hard now and relax later on in life,
0:50:10 > 0:50:16"or relax now, do what your friends are doing, and have a hard life later on, working all the time."
0:50:16 > 0:50:18I thought I'd pick the first option!
0:50:18 > 0:50:25Well, Shaz listened and acted. He's also studying at business school and runs a fast-food outlet.
0:50:25 > 0:50:30Busy boy! But it's this house that is giving him food for thought.
0:50:30 > 0:50:35With a history of mining in the area, the house is directly above two mineshafts.
0:50:35 > 0:50:42Shaz was hoping to get a Coal Authority interpretive report to see if they've been capped off.
0:50:42 > 0:50:47With plans to get this on the rental market ASAP, we've returned just five weeks later
0:50:47 > 0:50:50to see what Shaz has done.
0:50:52 > 0:50:57Well, that's a change. The brightly-painted exterior is certainly eye-catching
0:50:57 > 0:51:03and the front garden has been given a comprehensive tidy-up.
0:51:03 > 0:51:08Inside, the living room has had the fireplace removed and with new decoration
0:51:08 > 0:51:12and carpets laid, everything looks more homely.
0:51:12 > 0:51:19The kitchen has been totally replaced and with new floor coverings and a breakfast bar,
0:51:19 > 0:51:21it appears much fresher.
0:51:22 > 0:51:28The bathroom units are the same, but new tiling and redecoration has revitalised it.
0:51:30 > 0:51:34So let's hope it's the same in the garden.
0:51:34 > 0:51:38We've had a dramatic makeover here in the garden.
0:51:38 > 0:51:42The gardeners have done their fantastic magic over here.
0:51:42 > 0:51:45We've had new grass put in, new pebbles,
0:51:45 > 0:51:51jet washed all the slabs, cut the trees so more sunlight can come in
0:51:51 > 0:51:57and this outbuilding - we had the option of removing it, but due to the potential tenants we've had in,
0:51:57 > 0:52:03they said they prefer to keep this so they can store their garden equipment, et cetera.
0:52:03 > 0:52:08And we've also put a new frame on it as well.
0:52:08 > 0:52:15The work out here has improved the garden no end and the brick block is not such an eyesore now.
0:52:15 > 0:52:22I never thought I'd say that! Back inside and upstairs, all the bedrooms have had a makeover
0:52:22 > 0:52:25with complete redecoration and new carpeting.
0:52:25 > 0:52:31Shaz has added feature wallpapers to add colour and contrast to the decor.
0:52:31 > 0:52:36With little really wrong with the house and Shaz wanting a quick turnaround,
0:52:36 > 0:52:40this renovation has been a mainly cosmetic exercise,
0:52:40 > 0:52:46- except for the kitchen. - It's a second-hand kitchen which I sourced myself on the web.
0:52:46 > 0:52:51We got a really good deal. We got quite a lot of worktops with it which I've also used
0:52:51 > 0:52:55in other places in the property. It's worked out really well.
0:52:55 > 0:52:58# I call it a bargain
0:52:58 > 0:53:01# The best I ever had... #
0:53:01 > 0:53:07Shaz has already understood a basic rule in property developing - not spending more than necessary.
0:53:07 > 0:53:10But what about those mineshafts?
0:53:10 > 0:53:17He's already set the wheels in motion to get an interpretive report from the Coal Authority.
0:53:17 > 0:53:23If the result is positive, it becomes mortgageable and more attractive on the resale market.
0:53:23 > 0:53:27However, for now Shaz is letting the place out.
0:53:27 > 0:53:31But either way, the aim here is to make money.
0:53:31 > 0:53:35Earning a tidy income will depend on how much the refurbishment cost.
0:53:35 > 0:53:42Originally I planned for £6,000-£8,000, with contingencies in case we didn't forecast something.
0:53:42 > 0:53:48However, luckily and thank goodness, we have come well within our budget.
0:53:48 > 0:53:51We ended up spending £4,500.
0:53:51 > 0:53:57That's good news for Shaz. Add the £4,500 spent to his purchase price of £33,000
0:53:57 > 0:54:02and his total outlay is £37,500.
0:54:02 > 0:54:07The job was actually completed in a cracking four weeks,
0:54:07 > 0:54:11but it must have been all hands to the pump and frenetic.
0:54:11 > 0:54:16It's a big relief. Everyone involved in this project I'm really proud of,
0:54:16 > 0:54:20from the gardener to the tiler and, most importantly,
0:54:20 > 0:54:24my project manager who is, coincidentally, my mum.
0:54:24 > 0:54:31She's done a fantastic job with her input and making sure everyone is on track with their work.
0:54:31 > 0:54:34I'll take them out for a meal!
0:54:34 > 0:54:39But will the local property market be equally happy with the result?
0:54:39 > 0:54:41We asked two local estate agents
0:54:41 > 0:54:45what they thought of Shaz's £37,500 investment.
0:54:45 > 0:54:49I think the owner's made quite a good job. New kitchen,
0:54:49 > 0:54:53recarpeted. First impression is they've made a good job of it.
0:54:53 > 0:54:58It's a nice-sized property. It's got a good layout and flow to it.
0:54:58 > 0:55:03It's been decorated very nice, but they could have done a bit more.
0:55:03 > 0:55:08Well, Shaz has always had the rental route in mind, so what could the place achieve if let?
0:55:10 > 0:55:14I would imagine this could achieve £350 per calendar month.
0:55:14 > 0:55:19In its current condition, we'd expect to achieve £350 per month.
0:55:19 > 0:55:26That sounds quite reasonable, but luckily I've got a tenant who will be moving in tomorrow morning
0:55:26 > 0:55:33and he's agreed £425 per calendar month. Just a touch higher than the estate agents have valued it at.
0:55:33 > 0:55:36I'm really happy with that.
0:55:36 > 0:55:42That income could give Shaz a whopping annual rental yield of 13.5%,
0:55:42 > 0:55:49but bearing in mind that £37,500 total investment, how much might a resale achieve?
0:55:49 > 0:55:52I'd place this on the market at around £45,000.
0:55:52 > 0:55:55We'd recommend an asking price of £45,000.
0:55:55 > 0:56:01The estate agents reckon the presence of the two mineshafts has forced these valuations
0:56:01 > 0:56:04of £45,000 as a ceiling price.
0:56:04 > 0:56:11But that would still leave Shaz with a potential pre-tax profit of £7,500.
0:56:11 > 0:56:16While he is content with that, he knows the most valuable thing here is the experience gained,
0:56:16 > 0:56:22- which he's already put to good use. - Since the last time I bought this property at auction,
0:56:22 > 0:56:27I've purchased another one and I'm going into the commercial market.
0:56:27 > 0:56:32With the support I've got with my family, I don't think anything can stop me now.
0:56:32 > 0:56:40Hopefully, we can pick up more bargains and carry on and grow the portfolio even more.
0:56:42 > 0:56:46We'll be back with more auction properties next time.
0:56:46 > 0:56:54- We hope we've inspired you and given you an insight into the auction world.- See you then.- Goodbye.
0:57:09 > 0:57:12Subtitles by Red Bee Media Ltd