Episode 52 Homes Under the Hammer


Episode 52

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Transcript


LineFromTo

-Hello and welcome.

-For many people, buying at auction

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gives the chance to buy properties which are in need of renovation.

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Yes, people like to put their own stamp and style on a property

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and hopefully make a profit along the way.

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You might be able to do that by buying your home under the hammer.

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We love the buzz and the excitement of the auction room.

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You can really sense the hope and frustration in the air.

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Yes, and you never know how it's going to go until the final second.

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So, what tempted the buyers on today's show?

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Who fancied this rather compact Cornish cottage?

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Look at this corridor!

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It's so narrow and cramped, it's horrible.

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This London flat really accentuated the positive,

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but it's not all good news.

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The big negative for me here is that second bedroom.

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While this quirky Yorkshire terrace conceals lots of surprises.

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Then here, more storage?

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Oh, no...stairs!

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All these properties went to auction.

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We'll find out who bought them and what they paid for them

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when they went under the hammer.

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Congratulations.

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Today, I'm in Redruth, in Cornwall.

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And here, just off the high street, is Murdoch House,

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named after William Murdoch, who, around 200 years ago,

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pioneered the production and storage of gas.

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And in fact,

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this was probably the first house ever in the world

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to be lit by coal gas -

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a shining example of man's ingenuity.

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# I see your lamplight

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# Shining from your window

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# Babe, I see your lamplight... #

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Redruth is a busy town with a deep sense of history and lots

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of artistic flair.

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And who would've thought you could have made

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such good use of Welly boots?

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Well, it seems that Redruth is quite the place for creative types.

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Mick Fleetwood, the drummer from Fleetwood Mac, was born here.

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So, will the property I'm here to see inspire Big Love,

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will it be a place of my Dreams or full of Little Lies?

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Well, this is it. It's a three-bedroom mid-terrace.

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Now, the guide price is 70,000 quid.

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Let's go inside, or should I say, Go My Own Way.

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# You can go your own way

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# Go your own way! #

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Built in 1899, this stone-built mid-terrace

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reflects the history of the area.

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Unfortunately, so does that roof, which looks like

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it could become an Albatross round a buyer's neck.

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Oh, well.

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And you could have a Long Way To Go to find your car.

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This is a busy road with double yellow lines right outside,

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so with no outside parking, that could be an issue.

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Look at this corridor!

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It's so narrow and cramped, it's horrible. But anyway,

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over to the left, a front sitting room.

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It's nice it's got an open fire, but it does look to be in a fairly

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sort of old and in need of love and attention kind of state.

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Rear area here. This actually looks quite nice.

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You've got the beams

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and it looks like it's been recently decorated,

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which is quite good.

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The stairs leading to upstairs, we'll explore that in a minute.

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But again, it's just really, really cramped.

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Through to the rear of the property.

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Some kind of extension, single storey here.

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This is the kitchen.

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And worse than that, this is the bathroom.

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Now, your kitchen and your bathroom, your two really important rooms

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in a house.

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And they're both a little bit...lacking.

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# You're no good, good, good You're no good. #

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It's all about space.

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There's been no lack of effort in some of the cosmetic work

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with a brand-new toilet and walk-in shower.

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So, it's more like a wet room than a bathroom.

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But it can't disguise the fact

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that this is a very cramped house

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and the layout just does not work.

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The kitchen units are fine as far as they go, but there's still

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a lot to do to this house that was guided at £70,000 plus.

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Well, upstairs,

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desperately hoping for some improvements.

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And straightaway those hopes are dashed.

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This is one of your bedrooms.

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It's a nice size, but it has a low ceiling

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and it has a bow in it, as well.

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And I don't like the fact that on the staircase,

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you've got all these little semi-landing areas,

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very dangerous.

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Come out, step down, don't know what's coming.

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In the middle of the night, going to the loo, quite disastrous.

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Bedroom over there looks to be all over the place.

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This is not looking good.

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And this is the final bedroom up here.

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And straightaway, again, I mean, just look everywhere.

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Look at the ceiling, there's stuff going on there.

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It's got a bow in it. And... Oh, wow, what's going on here?

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In this corner, the floor looks like it's...

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Oh, right.

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Tread carefully here,

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for there are serious problems.

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Look at this crack.

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This really is not looking good, dear property lovers.

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In fact, I think it's about time I left.

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# I think I better leave right now

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# Before I fall any deeper

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# I think I better leave right now. #

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A good clue to the problems of this property lie

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in that statue of a miner in the town.

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Where there are mines, there will be

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the dreaded mining works lurking underneath.

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I would seek expert advice and obtain a mining report,

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otherwise you could be facing a Landslide.

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OK, that's my last Fleetwood Mac reference, I promise!

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Out the back, apart from the extension,

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the walls look OK and the walled garden is a nice surprise.

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We've invited a local estate agent

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to come and look around this mid-terrace that was guided

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at £70,000 plus to discover a bit more about the potential for it.

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Just what are the problems visible here?

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It's a downside, really, that the bathroom is downstairs.

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Potentially, it would be better to go upstairs.

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You know, definitely parking to the front would be a big benefit.

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If changes were made to the house

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and it was given a full refurbishment,

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how much could it achieve on the rental market?

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Rental for the property, I would be looking

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at between £650 to £700 per calendar month.

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And the potential resale figure?

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I would like to market it

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at approximately £135,000.

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Well, not one for the faint hearted, this.

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Structural issues and internal layout problems galore.

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Still, if you get it at the right price,

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it could still be worth taking on.

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Let's find out what that price was when it went under the hammer.

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So, this is a two-storey, three-bedroom mid-terrace cottage.

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Needing improvement.

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We start at 70,000 on the phone.

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65,000 here. 65. 66 now. At 66.

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67? 67. 68?

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68. 69. 70,000 on the phone.

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71.

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71 here, seated.

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And two. 73.

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A half? It is a half.

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72.5. 73 now.

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73. 75? 74, then.

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74.5?

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I took a half from you, I have to take a half from them. 75. Yes?

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75 here. 75.5. And 76.

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Right, £76,000 seated.

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Half here or no? Are we done? No.

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At £76,000.

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Final time, the bid is with you. Are we sure we're all done?

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Yours at £76,000.

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That final bid of 76,000 was made by Peter.

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He's been a full-time property developer for the last ten years

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and has owned a hotel in the past.

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I met up with him to hear about his plans for this place.

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-Peter, good to meet you.

-Morning, Martin.

-Congratulations.

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-Thank you very much.

-I hope you're a man that likes a challenge, then.

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Yeah, I think we're going to have to rise to this one.

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There's a bit of work to do.

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Which bit of work are you aware of?

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Well, we're pretty sure that we're going to have to move the stairs,

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which means we're going to have the flight

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going in the opposite direction,

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so that we can then move

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the rec room, which is now in part of the kitchen,

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upstairs and still retain the three bedrooms.

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And then we need to sort out the kitchen

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and get that better organised.

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And then we've got to decorate, obviously.

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You haven't mentioned the sort of saggy,

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subsidence-y, sort of cracky, bitty things.

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We'll take down the stud walls on the inside

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and we're hoping to raise the roof upstairs

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and, at the same time,

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get rid of the sagging bit, shall we say.

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Wow, Peter's plan sounds like an ambitious project -

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to move the staircase, relocate the bathroom and keep three bedrooms.

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But he's not as concerned as me about the sagging roof.

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According to him, a just needs a lot of attention.

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Tell me more about you, then. Are you a builder?

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Well, our company is a development company.

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-OK.

-But we've, over the last two or three years, with the recession,

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gone towards restoration of older properties,

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either for a client or we buy it ourselves,

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redo it up and resell it,

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which is what we're doing in this case.

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-OK.

-We always research the property first, that's a must.

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We won't buy blind at auction.

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You say you do research, have you had a mining report?

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-Yes, we have a mining report.

-And?

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One says that originally there might have been mine shafts down this road.

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Right.

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But the other one says they probably weren't under this property,

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they were further south or north.

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-Huh.

-Now, this property, we know, has been built over 100 years.

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-We've already got an original deed from 1899.

-Wow.

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In parchment. If it was standing that long,

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-there isn't too many issues to worry about.

-Right.

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But you have to secure that knowledge,

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ready for a mortgage company.

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For any investor looking for funds, that's imperative.

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Outside, Peter plans to add off-street parking,

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but what changes will his builders make to the downstairs layout

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of this three-bedroom terrace?

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At the front,

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we're going to take down all the doors

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-that you've come through.

-Right.

-And, obviously,

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the stairs will go.

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We'll widen the stairs, bring them down into the hallway,

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-further up towards the door.

-Right.

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Down here, we're hoping to put a pair of French doors in

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-behind where you're standing.

-Oh, right.

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And then we'll extend the kitchen to the left,

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where the wet room is at the moment, and block up the original door.

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How much is all that going to cost, then?

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-We're budgeting on 30,000.

-Wow.

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That's working on the costings that we've already done on the property.

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So, we think we're safe on that, but we'll see.

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Well, listen, there are a few challenges ahead,

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-but good luck.

-Thank you very much.

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-We'll see how you get on.

-Nice to meet you.

-You, too.

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Well, I'm delighted that Peter is smiling about the whole thing,

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because there are some challenges ahead with this one, aren't there?

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Not least whether or not it's actually built on a mineshaft.

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That would be bad.

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In terms of inside, it's going to be a complete rip-out job.

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Luckily, he's got the experience,

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otherwise that 30-grand budget, no chance.

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You can find out how he transforms this place later in the show.

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For the next property that's sold under the hammer,

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I'm in a London suburb south of the river.

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Ten years ago exactly,

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there was an article in the Evening Standard

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that called Balham

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one of the fastest-improving neighbourhoods in the capital.

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They weren't wrong.

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Balham became popular with London City bankers

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who grew out of their bachelor pads in Clapham, became dads

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and bought houses here for the growing family.

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Now, the high street just transformed and filled

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with boutiques, bars and bistros and the prices...

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Well, as you can imagine, they skyrocketed.

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# Just lift off

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# Up, up and away Just lift off! #

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And right through the roof of those houses.

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They've nearly doubled in value and gone into orbit,

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with three- or four-bedroom houses costing nearly a million.

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So, could the property I'm here to see be about to shoot up

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in value, as well?

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A ten-minute walk from the tube station

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and I am on a lovely, leafy street,

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exactly what young professional Balhamites are after.

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Good start!

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The property itself is this -

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a purpose-built, ground-floor, two-bedroom flat,

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which had a guide price of £225,000.

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Now, I know that's a huge amount of cash for a smallish home,

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but when you consider two beds in Balham can go for double that,

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I am entitled to be excited.

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# I'm so excited

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# I'm a detective I'm all over you. #

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This flat looks really smart and inviting from the outside, but

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that guide price hints that I may feel a little deflated once inside.

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As I expected, very dated. In fact, it's a pale yellow,

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woodchip haze everywhere.

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So, a lot of stripping back to do, but super proportions in this room.

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I mean, what a lovely lounge.

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Good-sized bedroom, as well. Sadly, no beautiful features to speak of.

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You can see they've all been covered up.

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You've got a really long, long corridor here.

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Nice storage space under the stairs, I like to see that.

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You've got a bathroom.

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A little bit on the small side, but you could work with that.

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Oh! Bedroom number two, really disappointing.

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Small. Not only that, it's a rather odd shape,

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so I'm not quite sure how you would even fit a bed in there.

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A bit awkward. And at the back of the property...

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Now, I really like this. You've got a nice dining area and a kitchen.

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Now, this is absolutely fantastic.

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The big negative for me here is that second bedroom.

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It's an odd shape, it's small.

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What I have seen other people do is convert the front room,

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the lounge, into a bedroom, but I think that would be a waste

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and I don't think you need to do that here.

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I would concentrate on that second bedroom,

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probably pinch a bit of space from the bathroom to make it

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a bit bigger, and then I think it would work.

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That's what you'll need to do with this property.

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# Sweet like chocolate

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# You bring me so much joy

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# You're sweet like chocolate. #

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Well, this full-fat chocolate suite might have been the sweetest thing

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in the '70s, but it's time it melted away

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into something a little more up-to-date.

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Talking of sweets,

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let's have some pastel colours in here.

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I reckon the loo could go over to the other wall

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and this space could go to the bedroom.

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There's a challenge in the teeny-weeny kitchen, as well.

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You'd need new units, definitely, and to lose the panelling.

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That's a no-brainer.

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And also get the boiler moved

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and a large window installed to enjoy the view at the back.

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Why should this fox family have all the fun?

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And I've got another question.

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When is a garden not a garden?

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When it's a communal space, of course.

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I come across this time and time again in London.

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You assume the ground-floor flat has the garden,

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but actually it's shared with upstairs.

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So, do you leave it all open and risk having

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your upstairs neighbour sitting with you on a sunny weekend?

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Do you fence it off so you have half each?

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Then, you have to work out who gets which side.

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There is never an easy answer here.

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But like any property, people want to know what they own

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and where it starts and ends.

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So, personally, I would take advice from a local agent,

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chat to your neighbour and see if you can come to a compromise.

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So, what does a local property expert think of this two-bedroom

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flat with its 125-year lease

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and auction guide price of £225,000?

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My first impression of this property is that it is

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one of the most popular sort of flats, a garden flat.

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It's got the two bedrooms, which is great,

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but the second bedroom is not a great double.

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Needs a lot of work, but it will be lovely when it's finished.

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What about the garden? How should that be divided up?

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In this case, I would advise it being split horizontally,

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with the upstairs flat having the rear part of the garden.

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They'd come down their stairs, have a little path at the side.

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And it means the people on the ground floor

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would be able to open their kitchen door

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straight out onto their own section of garden.

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That seems a good idea.

0:17:390:17:40

How much could the flat achieve in resale or rental

0:17:400:17:43

after a full refurbishment?

0:17:430:17:45

When it's finished, these properties

0:17:470:17:49

go for 450,000 to 460,000.

0:17:490:17:52

I would expect it to achieve between 1,500 and 1,600 per calendar month.

0:17:520:17:57

A cracking flat in a fantastic area with a staggering guide price.

0:17:570:18:03

Let's see who snapped this one up at the auction.

0:18:030:18:06

Right, lot one is a good-sized

0:18:060:18:08

four-room, purpose-built flat.

0:18:080:18:10

Obviously, Balham, hot area. 250?

0:18:100:18:13

Well done, 250. 255?

0:18:130:18:16

255. 260.

0:18:180:18:20

265. 270. 275. 280.

0:18:200:18:24

285. 290. 295.

0:18:240:18:30

300. 305.

0:18:300:18:32

Well, this was a very popular lot which attracted several bidders.

0:18:320:18:36

We rejoin the auction a little later.

0:18:360:18:38

337, don't be shy. 337. 338?

0:18:380:18:42

338. 339? Yeah?

0:18:420:18:45

340? Yeah? 340. 341?

0:18:450:18:49

342.

0:18:500:18:51

343.

0:18:510:18:54

343, another spot. 344.

0:18:540:18:56

It's a good lot, yeah?

0:18:560:18:58

345. 346.

0:18:580:19:01

347. 348.

0:19:010:19:04

349. 350.

0:19:040:19:07

351, sir. 352.

0:19:070:19:10

351, standing up. Anyone else?

0:19:100:19:14

351, first time. Second time.

0:19:140:19:16

Third and last time. Are we all done?

0:19:160:19:19

Sold, 351. Well done.

0:19:200:19:22

Clearly, I wasn't the only one to be excited.

0:19:230:19:26

A thumbs-up from Dirk.

0:19:260:19:28

He must be pleased with the 351,000 he paid.

0:19:280:19:32

Dirk's originally from Berlin and is a climate change consultant.

0:19:340:19:38

# Let me be your wet-weather man. #

0:19:380:19:41

Although he's currently on a career break.

0:19:430:19:46

He's bought investment properties in the past, but this

0:19:460:19:49

is his first purchase since the recession.

0:19:490:19:51

I met up with him back at the flat

0:19:510:19:53

to hear about his plans.

0:19:530:19:55

-Dirk, congratulations.

-Hi, thanks.

0:19:570:20:00

This is a super flat. Tell me why you wanted to buy it.

0:20:000:20:03

Well, I was very attracted to this flat.

0:20:030:20:06

I lived in the area

0:20:060:20:08

when I moved to the UK, so I know it very well.

0:20:080:20:10

I did some property development in the past when I came to the UK,

0:20:100:20:15

and was straightaway infected by the property bug

0:20:150:20:17

that's going on here.

0:20:170:20:19

So, yeah, I was keen to invest in London.

0:20:190:20:21

You've bought this obviously not to live in.

0:20:210:20:24

No, no, it is a pure investment, basically, to do it up

0:20:240:20:29

and either rent it out, get some equity out of it,

0:20:290:20:31

or just sell it on.

0:20:310:20:32

So, it's timed quite nicely for you that you happen to be

0:20:320:20:35

on a career break and this has come up just at the right time.

0:20:350:20:37

Yes.

0:20:370:20:38

Well, you know, things don't happen just by chance,

0:20:380:20:41

so end of last year, personal life took a little bit of a dip,

0:20:410:20:45

so I thought I have to re-inject a bit of passion into my life.

0:20:450:20:49

So, I decided to do a bit of property development and travelling.

0:20:490:20:55

So, I asked my management

0:20:550:20:58

for a career break and they were very supportive.

0:20:580:21:00

-So, what is it that you do?

-I'm a meteorologist, originally,

0:21:000:21:04

and I'm working for a big consultancy in the Midlands

0:21:040:21:08

as a climate change analyst and environmental consultant.

0:21:080:21:12

Well, maybe meteorologist Dirk will be able

0:21:130:21:16

to predict where the sunny side of the garden will be.

0:21:160:21:19

# I want to be your wet-weather man. #

0:21:200:21:23

But he's going to leave that for the new owners to negotiate

0:21:250:21:28

with the upstairs neighbours.

0:21:280:21:30

I definitely don't want to rain on his parade,

0:21:300:21:32

but he has quite a challenge on his hands to bring

0:21:320:21:35

this ground-floor, two-bedroom flat into the present.

0:21:350:21:38

What are you going to do to turn this space around?

0:21:400:21:42

First of all, some basic renovation,

0:21:420:21:44

so really take down these PVC tiles, which are pretty ugly,

0:21:440:21:47

skim the walls.

0:21:470:21:49

There are nice floorboards, actually, below these carpets,

0:21:490:21:52

so sand that, lacquer it.

0:21:520:21:55

Rip down this wall here and open that up to a big kitchen-diner.

0:21:550:22:00

Double doors here and make that very desirable and a nice family flat.

0:22:000:22:05

I think that would look great. It's wonderful

0:22:050:22:07

to walk into a space and be able to see that beautiful garden.

0:22:070:22:10

-Exactly.

-Now, all you see is an ugly boiler

0:22:100:22:12

hanging off the wall, and it definitely needs

0:22:120:22:14

-some rearrangement in here.

-Yeah.

0:22:140:22:16

Also, a negative for me is the second bedroom.

0:22:160:22:18

-It's incredibly small. It's just a bit too small.

-That's right.

0:22:180:22:21

It's not really a bedroom at the moment.

0:22:210:22:23

So, what we're going to do is to actually take

0:22:230:22:26

that corner that is there,

0:22:260:22:28

which belongs to the bathroom,

0:22:280:22:30

take that out and then move the toilet.

0:22:300:22:33

That should all fit quite nicely.

0:22:330:22:35

Well, I'm going to give Dirk the thumbs up now.

0:22:350:22:39

I reckon he's made the right call to leave

0:22:390:22:41

the lounge as it is and concentrate on maximising the potential

0:22:410:22:43

of the second bedroom.

0:22:430:22:45

And I'm getting all excited again about the prospects

0:22:450:22:48

for that kitchen.

0:22:480:22:49

I can't wait to see how that one turns out.

0:22:490:22:52

How much has he set aside to spend here?

0:22:520:22:54

I hope to come in within 20K for the whole project.

0:22:560:23:01

So, the whole project, £20,000?

0:23:010:23:03

£20,000 in six weeks, yeah.

0:23:030:23:05

I would like to think you could do it for £20,000. In fact,

0:23:050:23:08

if you could do it for £20,000,

0:23:080:23:09

-you could add a lot of value to this property.

-I agree.

-Good luck.

0:23:090:23:13

-It'll be really exciting seeing how you turn this place around.

-Yeah.

0:23:130:23:16

-Congratulations.

-I can't wait.

-Thank you.

-Thanks.

0:23:160:23:20

So, our English property obsession has infected native German Dirk.

0:23:210:23:26

It's inevitable, I'm afraid.

0:23:260:23:27

And what a great property to reignite the passion in his life.

0:23:270:23:31

But six weeks and 20 grand? I hope he manages it.

0:23:310:23:34

You can see if he does later in the show.

0:23:340:23:38

Coming up, there are so many options in this Yorkshire terrace

0:23:380:23:42

and so much space.

0:23:420:23:44

Why not think about actually bringing the kitchen down here?

0:23:440:23:48

We return to Balham

0:23:480:23:50

to see if Dirk's plans have gone off the straight and narrow.

0:23:500:23:54

It's a great learning curve,

0:23:540:23:56

and I'm going to use that knowledge to do my next project.

0:23:560:23:58

And talking of narrow,

0:24:000:24:01

how did Peter get so many builders in a cramped Cornish cottage?

0:24:010:24:04

We have a team... Probably about 20 guys in total.

0:24:040:24:08

# You can go your own way

0:24:110:24:15

# Go your own way! #

0:24:150:24:17

Back now to Redruth, in Cornwall,

0:24:170:24:19

a town with a rich seam of mining history

0:24:190:24:22

and some well-heeled modern sculptures.

0:24:220:24:25

It's where earlier in the programme we met Peter,

0:24:260:24:29

a full-time property developer.

0:24:290:24:31

He paid £76,000 for this stone cottage.

0:24:310:24:36

He wasn't looking to let it, but before he could sell it,

0:24:360:24:40

he and his builders had a lot of work to do.

0:24:400:24:43

I hope you're a man that likes a challenge, then.

0:24:430:24:47

Yeah, I think we're going to have to rise to this one.

0:24:470:24:51

There's a bit of work to do.

0:24:510:24:52

Mm, yeah, just a bit.

0:24:520:24:54

I love a developer who doesn't get fazed.

0:24:540:24:58

Peter planned to move the stairs,

0:24:580:25:00

relocate the bathroom upstairs and keep the three bedrooms.

0:25:000:25:05

Three and a half months later, we met Peter back at the cottage.

0:25:070:25:12

The sagging roof has lost its chimney.

0:25:120:25:15

And the garden has lost the wall, so there's now space for a car.

0:25:150:25:21

The staircase has been turned around - 180 degrees, in fact.

0:25:210:25:25

And the narrow corridor is gone.

0:25:250:25:27

So, I'm delighted.

0:25:270:25:29

Look at this corridor!

0:25:290:25:31

It's so narrow and cramped, it's horrible!

0:25:310:25:33

The ground floor has really been opened up.

0:25:330:25:36

Just look what a difference it's made to the former dining room

0:25:360:25:40

at the back.

0:25:400:25:41

Peter's created an archway in the thick rear wall

0:25:430:25:46

of the house, straight out into the refurbished extension,

0:25:460:25:51

where a stunning new kitchen has been installed with extra

0:25:510:25:54

space gained by removing the wall to the former wet room.

0:25:540:25:59

And there's been an added benefit to losing the original entrance,

0:26:010:26:05

as Peter explains.

0:26:050:26:09

Well, in the kitchen area, it used to have a door to the right,

0:26:090:26:12

which led you into a partly finished kitchen.

0:26:120:26:16

There was then a stud wall across and you had a wet room downstairs.

0:26:160:26:21

We've ripped all of that out to give us a utility room

0:26:210:26:24

for the boiler, dishwasher and tumble dryer

0:26:240:26:28

and a downstairs toilet for the people that are living here.

0:26:280:26:31

On top of that, we've got the kitchen finished.

0:26:310:26:34

It is now ready for somebody to move in

0:26:340:26:38

and add their own freezer and fridge.

0:26:380:26:41

What an incredible effect just relocating the stairs

0:26:410:26:44

has had on this property.

0:26:440:26:46

The ground floor now flows seamlessly from one room to another.

0:26:460:26:50

The front living room is just as impressive.

0:26:530:26:56

Well, this room wasn't quite as big as it is now.

0:26:560:27:01

There was a narrow hallway here, which we've totally got rid of.

0:27:010:27:04

And, of course, you've got the stairs this side,

0:27:040:27:07

whereas before they were the other side.

0:27:070:27:10

Upstairs has a new layout, too.

0:27:100:27:14

Removing the corridor between the small front bedroom

0:27:140:27:17

and the larger double has created extra space.

0:27:170:27:21

And with the stairs moved,

0:27:210:27:23

Peter was able to relocate the bathroom upstairs, as promised.

0:27:230:27:28

It's small and there's only a shower, but, hey, it is upstairs.

0:27:280:27:33

And there are still three bedrooms.

0:27:350:27:37

The back bedroom lost some space to the bathroom,

0:27:370:27:41

but it's still a decent size.

0:27:410:27:43

How involved has Peter been here?

0:27:430:27:45

I was on site every day.

0:27:450:27:47

We have a team... Probably about 20 guys in total.

0:27:470:27:52

And we've replaced all of the plumbing.

0:27:520:27:55

We've replaced all of the electrics.

0:27:550:27:57

And, obviously, we've had to replace the floors and the ceilings.

0:27:570:28:02

Peter's team have only just started to tackle outside,

0:28:040:28:07

but the sagging roof has been sorted

0:28:070:28:10

and Peter got two further mining reports,

0:28:100:28:13

which stated the house was safe.

0:28:130:28:15

Phew! So, those original deeds were a good omen.

0:28:150:28:18

How much has it all cost? Did he keep to the 30 grand he budgeted?

0:28:190:28:24

We are, at this point, and we still have some bills to come in,

0:28:260:28:30

around 42 to 45,000.

0:28:300:28:32

Well, if it does top out at 45,000, added to the £76,000 he paid,

0:28:320:28:38

that will take Peter's total investment to £121,000.

0:28:380:28:43

What will two local estate agents think of the place?

0:28:430:28:47

It's time to find out.

0:28:470:28:50

My first impression of the property

0:28:500:28:52

is it's been well refurbished

0:28:520:28:55

to a quite high standard. The kitchen works really well

0:28:550:28:58

and it's in keeping with the age of the property.

0:28:580:29:00

And also that they've put the shower room upstairs.

0:29:000:29:03

I think the developer has done an excellent job on the renovation.

0:29:030:29:05

I think there's three

0:29:050:29:07

real benefits that he's brought into the property.

0:29:070:29:09

Firstly, removing the wet room from the ground floor,

0:29:090:29:11

installing a shower room upstairs.

0:29:110:29:13

Secondly, he's provided an off-road parking area to the front.

0:29:130:29:17

And lastly, really removing the inner hallway has brought

0:29:170:29:20

a lot more light and space to the living accommodation.

0:29:200:29:22

Peter says he'll sell,

0:29:220:29:24

but I wonder how much the rental income could be.

0:29:240:29:27

It might persuade him to keep it.

0:29:270:29:29

I would suggest marketing it at £650 per calendar month.

0:29:290:29:33

I think the rental income we could possibly achieve

0:29:330:29:35

on this property would be in the region of £650

0:29:350:29:37

per calendar month.

0:29:370:29:39

So, there could be a yield here of over 6.5%.

0:29:390:29:42

Could Peter be tempted by that?

0:29:420:29:44

That's interesting, but we tend to steer away from the rental market,

0:29:440:29:49

purely because of the amount of management costs involved.

0:29:490:29:52

OK, so what's the house worth?

0:29:520:29:54

More than the £121,000 that Peter's invested here?

0:29:540:29:59

I would suggest a marketing price of £135,000.

0:29:590:30:02

I'd estimate a sale in the region of £140,000 to £145,000.

0:30:020:30:07

That's £14,000 to £24,000 gross profit

0:30:070:30:11

before expenses and taxes.

0:30:110:30:12

Is that the sort of margin he had in mind?

0:30:120:30:15

We know that probably the market is around 140,

0:30:150:30:20

but with the amount of work we've done, we would hope to get 150.

0:30:200:30:25

Well, fingers crossed, because Peter and his team have invested

0:30:250:30:29

a lot of time and effort in turning this house around.

0:30:290:30:33

And the results are cracking.

0:30:330:30:35

So, what's next for Peter, a new build or a renovation?

0:30:350:30:39

Well, one we're about to start next week, which is a new build.

0:30:400:30:44

And then we're looking at another renovation project

0:30:440:30:47

to follow on from that.

0:30:470:30:48

This mid-terrace certainly presented a challenge or two,

0:30:480:30:51

so did Peter rise to it?

0:30:510:30:53

I think we can safely say he did.

0:30:530:30:56

This is Sowerby Bridge,

0:31:050:31:08

in West Yorkshire, close to Halifax.

0:31:080:31:11

Before the Industrial Revolution, this was just a marshy hamlet,

0:31:110:31:16

but the arrival of the water mills changed that

0:31:160:31:19

and Sowerby Bridge became a centre for the textile industry.

0:31:190:31:24

Well, throw in the arrival of the canals and railways,

0:31:240:31:27

and what you've got yourself here is a thriving Victorian town.

0:31:270:31:31

The prosperity of the town continued long into the 20th century,

0:31:320:31:36

although the canals are now just used for pleasure.

0:31:360:31:40

So, will I find a prosperous property market or

0:31:400:31:42

one that's out for a duck?

0:31:420:31:44

# It's a kind of magic Magic, magic! #

0:31:450:31:49

Now, I'm no conjuror,

0:31:490:31:51

but I am going to show you something a little bit magic.

0:31:510:31:54

How, dear viewer, do you squeeze four bedrooms into what,

0:31:540:31:59

on the outside, looks like a pretty standard two-bedroom terrace?

0:31:590:32:02

Follow me and find out.

0:32:020:32:04

It's not a trick of the light, it's not two houses knocked into one

0:32:060:32:09

and, no, it's not a typo in the auction catalogue either.

0:32:090:32:14

This house had a guide price of £70,000

0:32:140:32:16

to £80,000 and looks in pretty good condition.

0:32:160:32:18

Like the neighbouring properties, it's on a very steep hill,

0:32:180:32:22

with an interesting elevation,

0:32:220:32:24

so maybe that explains the number of bedrooms.

0:32:240:32:28

Through the front door, stairs up to the bedrooms there,

0:32:290:32:33

and then down this corridor to a front sitting room,

0:32:330:32:36

really nicely decorated.

0:32:360:32:38

It's got a gas fire. You may want to take that away and see

0:32:380:32:40

if there's an opportunity to have a real fire there.

0:32:400:32:43

And then, joy of joys, towards the rear of the property,

0:32:430:32:46

in fact, out the back, this amazing kitchen, a really nice-sized space.

0:32:460:32:51

Not particularly well laid out here,

0:32:510:32:52

with just this one long line of cupboards and stuff,

0:32:520:32:55

but a really big window with views out cross the hills. We like that.

0:32:550:32:59

And here, more storage?

0:32:590:33:01

Oh, no...stairs!

0:33:010:33:05

# I'm going deeper underground. #

0:33:060:33:09

Down here, a kind of cellar/basement.

0:33:090:33:14

Pretty much underutilised at the moment, I think.

0:33:140:33:17

You've got some of these features, like this flagstone floor there.

0:33:170:33:21

At the moment, it's a bit of a sort of utility area.

0:33:210:33:24

You've got the boiler, a fridge, but you've got an open fire there

0:33:240:33:27

which you could work with.

0:33:270:33:28

But I'm thinking about something more dramatic.

0:33:280:33:30

Out through that door, you've got a patio, so why not think about

0:33:300:33:33

bringing in the kitchen down here,

0:33:330:33:36

putting in some lovely patio doors there, opening out onto the patio?

0:33:360:33:40

And that would be a really great use of this space.

0:33:400:33:43

So far, we've seen two floors of this house,

0:33:430:33:46

but don't forget there are four bedrooms still to find.

0:33:460:33:50

This place is starting to remind me of a certain time traveller's

0:33:500:33:53

phone box.

0:33:530:33:54

How on earth can all those rooms fit in this space?

0:33:540:33:58

So, up here maybe the mystery will be revealed.

0:33:580:34:02

A bathroom there. It is quite small for this size of property.

0:34:020:34:06

So, not ideal, but it's

0:34:060:34:08

in good condition. Big double bedroom there.

0:34:080:34:11

Another big double bedroom there.

0:34:110:34:14

And then up these stairs to a third double bedroom

0:34:140:34:18

and, finally, that fourth bedroom, how is it squeezed in?

0:34:180:34:21

Well, it's here.

0:34:210:34:22

It is small, though.

0:34:220:34:23

A single, or possibly bordering on a box, room.

0:34:230:34:26

Now, it is a lot of bedrooms for this size of property,

0:34:260:34:30

so what are your options?

0:34:300:34:31

Well, I'm a bit concerned about that bathroom, so maybe

0:34:310:34:34

one option is actually to get rid of this bedroom

0:34:340:34:38

and to turn this into a big family bathroom.

0:34:380:34:40

It would then leave you with three nice-sized double bedrooms

0:34:400:34:43

and two bathrooms.

0:34:430:34:44

That might make this place more saleable,

0:34:440:34:47

but if you're renting it out, maybe four bedrooms is worth having.

0:34:470:34:50

It all comes down to what you're planning to do with the place.

0:34:500:34:53

There is plenty of room to play with here, and of course, there is

0:34:540:34:57

the added bonus of lots of exercise going up and down all those stairs.

0:34:570:35:01

If you make it up to the top bedroom without the aid of an oxygen mask,

0:35:030:35:07

you'll need to watch you don't bump your head on the eaves.

0:35:070:35:10

But the mad angles are hardly a surprise

0:35:100:35:14

when you look at the crazy roof.

0:35:140:35:16

With a guide price of £70,000 to £80,000,

0:35:160:35:18

this is a property well worth

0:35:180:35:20

getting exercised about.

0:35:200:35:22

What does a local estate agent make of it?

0:35:220:35:26

When I got inside,

0:35:260:35:27

I thought, "Yeah, it's a good size."

0:35:270:35:29

A little bit tatty and neglected,

0:35:290:35:31

but, basically, it looks sound. So, it should just be

0:35:310:35:35

a case of doing a little bit of a refurb to make it pleasant

0:35:350:35:39

to occupy again.

0:35:390:35:41

What's the best use of that cellar space?

0:35:410:35:44

If you were going to live in it,

0:35:450:35:48

you would tank it out and make it

0:35:480:35:50

into a dining kitchen, without a doubt.

0:35:500:35:52

But tanking is expensive.

0:35:520:35:54

So, as an investment property or to do a quick return,

0:35:540:35:57

it probably isn't an option.

0:35:570:36:00

Tanking, in this case, might mean laying membranes or a cement-based

0:36:000:36:04

waterproof coating to prevent damp and water penetration.

0:36:040:36:08

On top of the re-plumbing and electrics and patio windows,

0:36:080:36:12

moving the kitchen wouldn't come cheap, that's for sure.

0:36:120:36:16

So, how much is this house worth in its current condition

0:36:160:36:19

and what could it achieve after a refurbishment?

0:36:190:36:22

The value today I consider in the region of £75,000.

0:36:220:36:27

And when refurbished, I would say in the region

0:36:270:36:30

of £90,000 to £95,000.

0:36:300:36:33

What about the rental potential?

0:36:330:36:36

The property, in good condition, would rent out

0:36:370:36:39

at £450 to £495 per calendar month.

0:36:390:36:44

Well, deceptively spacious, yes, but lots of work to be done.

0:36:470:36:52

Yes, lots of room, so it stacks up from a rental point of view,

0:36:520:36:55

but all those stairs?

0:36:550:36:56

Well, who fancied it? Let's find out when it went under the hammer.

0:36:560:36:59

So, moving on to lot 21.

0:36:590:37:02

Four-storey property, this one.

0:37:020:37:03

Four bedrooms, two receptions, £70,000, ladies and gentlemen.

0:37:030:37:07

60 then.

0:37:070:37:09

Thank you. 60, we're in.

0:37:090:37:10

At 60,000. Looking for 61 now. 61.

0:37:100:37:13

62? 62. 63?

0:37:130:37:16

63. 64?

0:37:160:37:18

64 here. 65 now? 65. 66.

0:37:180:37:22

It's going to be difficult, you're in line. 67.

0:37:220:37:24

67, sir. 68. 69.

0:37:240:37:28

At 69,000 with you.

0:37:280:37:30

69.5. And 70.

0:37:300:37:34

And 70.5.

0:37:340:37:35

Shake of the head. £70,000 standing up.

0:37:350:37:37

At £70,000. I'm going to sell for the first time. At 70,

0:37:370:37:42

for the second time. At £70,000,

0:37:420:37:45

third and final time.

0:37:450:37:46

Congratulations, well done, sir.

0:37:460:37:48

That final successful bid of £70,000, at the bottom end

0:37:480:37:52

of the guide price range, was made by Malcolm, who lives in Halifax.

0:37:520:37:57

He's worked in the motor trade for 20 years, but last year

0:37:570:38:01

decided on a change of career.

0:38:010:38:03

He's now started up as a property developer,

0:38:030:38:06

and this is his second investment.

0:38:060:38:09

# A change

0:38:090:38:10

# A change will do you good

0:38:100:38:12

# Will do you good... #

0:38:120:38:15

I met up with him back at the house to hear about his plans.

0:38:150:38:18

-Malcolm, great to meet you. Congratulations.

-Thank you.

0:38:200:38:22

£70,000, sounds like a bit of a deal for this place.

0:38:220:38:26

Yeah, that's the first thing that attracted me to it,

0:38:260:38:28

it seems like a lot of house for the money.

0:38:280:38:30

And why did you want to buy it?

0:38:300:38:32

Well, I wanted to have a go at returning the property

0:38:320:38:35

to the market after redeveloping it, make some profit on it.

0:38:350:38:38

If that doesn't work, send it out to rent,

0:38:380:38:40

move onto the next project.

0:38:400:38:42

-Right. Is this something you do?

-It is. About 12 months ago,

0:38:420:38:45

-I fancied a change in my career, so I gave up work.

-Oh, wow.

0:38:450:38:48

Started looking for my first project. Got one last year.

0:38:480:38:51

Bought it, modernised it, put it back on the market, made a small profit.

0:38:510:38:56

But learned a lot about the job.

0:38:560:38:59

-But this is my first house I bought at auction.

-Right.

0:38:590:39:01

So, this was new ground for me.

0:39:010:39:02

Tell me more about this lifestyle change, what happened?

0:39:020:39:05

I just got bored of being in the motor industry all my life.

0:39:050:39:08

What were you doing?

0:39:080:39:09

I worked my way through from dealerships to manufacturers.

0:39:090:39:13

I worked for some fancy car companies.

0:39:130:39:17

And it was all the same game, really, so I just wanted a big change.

0:39:170:39:20

Right. Have you got family, dependants?

0:39:200:39:22

I've got a partner,

0:39:220:39:24

-she's about a month and a half due on our first child.

-Congratulations!

0:39:240:39:28

Thank you very much. So, I've got a bit of pressure on, really.

0:39:280:39:31

So, I've got to get it all done in eight weeks.

0:39:310:39:34

-Gosh.

-That's what I'm gunning for, really.

0:39:340:39:37

Well, I admire Malcolm for being brave enough

0:39:370:39:39

to make a complete career change.

0:39:390:39:42

He clearly learnt a lot from his first project.

0:39:420:39:45

I'm assuming he's gone into this

0:39:450:39:47

because he's used to doing up his own houses and likes DIY.

0:39:470:39:50

-Have you got skills which you can utilise?

-No.

0:39:530:39:55

-No?

-None.

-None at all?

-None at all.

0:39:550:39:58

Well, banging things and taking things out?

0:39:580:40:00

Yeah, I can just about do that as long as somebody

0:40:000:40:02

keeps their eye on me.

0:40:020:40:03

-So, you don't get involved in any of the DIY kind of bit?

-Not really.

0:40:030:40:06

I mean, I'll do a bit of the labour side of things because

0:40:060:40:09

I need to know more about the job if I'm going to value houses better,

0:40:090:40:12

-but I have no skills.

-So, why this house in particular then?

0:40:120:40:17

Well, four-bedroom. It looked like a big house for the money.

0:40:170:40:20

I came and had a look at it, blown away by the size of it

0:40:200:40:23

and the condition of it.

0:40:230:40:24

And found that I could make some money out of it.

0:40:240:40:27

Under £110,000 there isn't another four-bedroom house

0:40:270:40:30

-on the market.

-Oh, wow.

-So, that's why

0:40:300:40:32

I want to develop it to a certain level

0:40:320:40:34

and get it on the market with no competition whatsoever.

0:40:340:40:37

Right. So, what are the plans for it?

0:40:370:40:38

Starting in the living room, I'm going to do a new fireplace.

0:40:380:40:42

A full new kitchen in here, new flooring.

0:40:420:40:45

Upstairs, in the bathroom, I'll re-tile,

0:40:450:40:47

keep the original suite that's in there.

0:40:470:40:49

And then go downstairs, make it more into a utility room.

0:40:490:40:54

There's a limit to what this house is worth.

0:40:540:40:55

# Take it to the limit

0:40:550:40:58

# One more time. #

0:40:580:41:01

Malcolm is sure he knows the top limit on this house,

0:41:010:41:04

so he's determined to keep to his budget of £7,500,

0:41:040:41:09

with a 10% contingency.

0:41:090:41:11

He does appear to have this sorted.

0:41:110:41:13

You seem, without being patronising,

0:41:130:41:15

extraordinarily well switched on and, bang, on the button with this,

0:41:150:41:19

-considering you just started out.

-You keep listening

0:41:190:41:21

and you learn from your mistakes. You know, paying £70,000

0:41:210:41:25

for a house is very small compared to the cars I was selling.

0:41:250:41:28

You were selling cars more expensive than the house?

0:41:280:41:30

-Oh, three, four times that.

-Really?

-Yeah, yeah. Three or four times that.

0:41:300:41:34

So, again, it doesn't really faze me.

0:41:340:41:36

I've bought and sold cars for far more than this.

0:41:360:41:38

-Listen, congratulations. Good luck.

-Thank you very much.

0:41:380:41:41

-We look forward to seeing how you get on.

-Absolutely.

0:41:410:41:44

Well, how funny that Malcolm's less fazed about buying a house

0:41:450:41:49

than he was about buying and selling cars.

0:41:490:41:51

It's not normally like that.

0:41:510:41:53

But the clock is now ticking for him with a new arrival on the way.

0:41:530:41:56

How will he get on sorting this place out on budget

0:41:560:41:59

and within that eight-week timeframe?

0:41:590:42:01

You can find out later in the show.

0:42:010:42:04

Finding good tradesmen is often the key to getting a project done up

0:42:060:42:10

on time and on budget, but sometimes people

0:42:100:42:13

take on the work themselves to maximise their profit.

0:42:130:42:16

So, have our buyers been getting stuck in or just stuck?

0:42:160:42:21

Let's find out.

0:42:210:42:22

There's a variety of reasons why people buy at auction.

0:42:220:42:26

But for meteorologist Dirk, who's originally from Berlin,

0:42:260:42:30

this ground-floor,

0:42:300:42:31

two-bedroom garden flat in Balham, south London, hit the mark,

0:42:310:42:35

for several reasons.

0:42:350:42:37

He knew the area, having worked in Balham

0:42:370:42:39

before moving to Nottingham to work

0:42:390:42:42

as a climate change analyst

0:42:420:42:43

and he is currently taking some time off from the office.

0:42:430:42:47

It's timed quite nicely for you that you happen to be

0:42:500:42:52

on a career break and this has come up just at the right time.

0:42:520:42:55

Yes. Well, you know, things don't happen just by chance.

0:42:550:42:58

So, end of last year, personal life took a little bit of a dip,

0:42:580:43:02

so I thought I had to re-inject a bit of passion into my life.

0:43:020:43:06

So, I'm on a career break.

0:43:060:43:07

It's now seven weeks later and back in Balham, it's not

0:43:090:43:13

just the climate that's changed.

0:43:130:43:16

Dirk has kicked up a storm with this previously rather dated flat.

0:43:160:43:21

Removing the wall to the kitchen

0:43:230:43:25

and adding an RSJ has created a fabulous L-shaped kitchen-diner.

0:43:250:43:30

There's still units to fit,

0:43:320:43:34

but this is a really impressive makeover already,

0:43:340:43:37

as Dirk explains.

0:43:370:43:40

Yeah, basically, this is obviously the space with the most changes.

0:43:400:43:43

We took out the dividing wall here.

0:43:430:43:45

And, yeah, put in...

0:43:450:43:47

The kitchen, was kind of the question

0:43:470:43:49

if we put it there or if the builder puts it in that corner.

0:43:490:43:52

So, we ended up putting it actually here in this corner

0:43:520:43:55

and to build additional units here, which makes it nice, open.

0:43:550:43:59

And, you know, you do your washing up, which nobody likes to do,

0:43:590:44:02

but at least you have a nice view to the garden, which is a nice asset.

0:44:020:44:06

So, it works quite nicely, I think.

0:44:060:44:08

You bet.

0:44:090:44:11

To save money, Dirk decided against bifold doors,

0:44:110:44:14

but this large window and separate door show off the garden just fine.

0:44:140:44:20

In the master bedroom, Dirk has opened up the chimney breast,

0:44:240:44:27

he sanded the floorboards and it's going to be a lovely room.

0:44:270:44:32

What I'm most excited about is that poky second bedroom.

0:44:320:44:37

Has he managed to change that?

0:44:370:44:39

Well, the answer is yes.

0:44:410:44:42

Stealing some space from the bathroom to make this room

0:44:420:44:45

a better shape has really worked well.

0:44:450:44:48

The lighter floorboards show where the loo was.

0:44:480:44:51

Amazingly, he's managed to get more bathroom into a smaller space.

0:44:540:44:58

He is a magician, because that can't have been easy.

0:44:580:45:02

Yes, the bathroom was a tricky decision because we didn't want

0:45:020:45:06

to lose the bath and there was no proper shower in it.

0:45:060:45:09

So, we really thought about a lot of layout options

0:45:090:45:12

before we then finally found this kind of layout to integrate

0:45:120:45:16

the shower and all the pipework and that dividing wall.

0:45:160:45:19

And that's the perfect bathroom for this kind of confined space

0:45:190:45:23

that you deal with here.

0:45:230:45:25

He's fitted more into this bathroom

0:45:250:45:27

than you'd think possible.

0:45:270:45:29

I'm really impressed with the whole flat. Retaining many

0:45:290:45:32

of the original features has resulted in

0:45:320:45:34

a really grand feel to the place.

0:45:340:45:36

I'm curious to know how much Dirk has managed to do

0:45:360:45:39

himself or who else has been involved.

0:45:390:45:42

Well, I had a couple of builders on-site.

0:45:430:45:46

My builders worked seven weeks straight

0:45:460:45:50

and sometimes on weekends, as well. Me included.

0:45:500:45:53

I was pretty much on-site every day, just to make decisions

0:45:530:45:57

or sand the floorboards myself to save some money.

0:45:570:46:01

But did his £20,000 budget lead him into stormy weather?

0:46:010:46:06

# Let me be your wet-weather man. #

0:46:060:46:09

How much has he had to splash out?

0:46:090:46:11

As things stand, I spent 23,300,

0:46:110:46:16

which, you know,

0:46:160:46:19

I had to fight hard to keep it within that budget, to keep it that way.

0:46:190:46:22

Dirk paid 351,000 at auction.

0:46:230:46:26

So, with his increased spend, that means he has

0:46:260:46:29

£374,300 invested here.

0:46:290:46:33

It seems being involved in this project

0:46:330:46:36

has helped him rediscover that passion he was looking for.

0:46:360:46:40

He's now thinking of making his career break more permanent.

0:46:400:46:43

Chances are that I fly solo and I'm probably not going back,

0:46:450:46:50

do a bit more of property development or start my own company once I

0:46:500:46:55

hopefully turn this around at a good price

0:46:550:46:58

and make enough money to actually afford my own career and my business.

0:46:580:47:04

Time to find out what two local estate agents

0:47:050:47:07

think of this two-bedroom flat.

0:47:070:47:10

Will Dirk's £374,300 investment get the thumbs up?

0:47:100:47:16

I like the kitchen.

0:47:180:47:19

It's very fresh, very contemporary feel,

0:47:190:47:21

with the integrated appliances. I particularly like the bathroom.

0:47:210:47:24

I think that the bathroom is a very good finish

0:47:240:47:26

and he's found a very good solution to where to put the shower.

0:47:260:47:30

It fits very well and it's got a good look, that bathroom.

0:47:300:47:33

I like the garden, although it's shared.

0:47:330:47:36

Perhaps there's the opportunity to petition

0:47:360:47:39

it off and make a private area.

0:47:390:47:41

I think that's quite a drawback,

0:47:410:47:43

and I think it's a great shame he didn't split it.

0:47:430:47:45

I wonder what effect that might have on the rental potential here.

0:47:450:47:50

I think we could rent the property out per calendar month for a figure

0:47:500:47:53

of between approximately £1,700 and £1,800.

0:47:530:47:55

You could put this on the rental market in the region

0:47:550:47:58

of £1,750 to £1,850 per calendar month.

0:47:580:48:02

I'm happy with that but obviously that's not the aim of this project.

0:48:020:48:05

This project, the aim is to actually sell it on.

0:48:050:48:08

Time now for the all-important sale valuations.

0:48:080:48:11

Is the flat now worth more than the £374,300

0:48:110:48:17

that Dirk has invested here?

0:48:170:48:19

Well, prices have moved a little bit since I first saw this property

0:48:190:48:22

and I would now recommend putting it on the market

0:48:220:48:25

in the region of £475,000.

0:48:250:48:27

I think we can put the property on the market for a figure of £475,000.

0:48:270:48:31

Wow, that could produce a gross profit of £100,700

0:48:310:48:38

before the usual selling expenses and taxes.

0:48:380:48:41

So, it sounds like it's all been worthwhile, Dirk.

0:48:410:48:44

You work very hard for it, so you want to achieve the highest price,

0:48:440:48:48

but, I mean, 475 is pretty much something I'm very happy about.

0:48:480:48:51

Dirk took this career break to try and re-ignite his passion.

0:48:530:48:56

He's certainly been bitten by the British property bug

0:48:560:48:59

and is already looking forward to doing up his next property.

0:48:590:49:04

It's a great learning curve

0:49:040:49:05

and I can use that knowledge to do my next project in Streatham

0:49:050:49:09

and I'm going to kick it even harder then and I will be bang on budget

0:49:090:49:13

this time around. Hopefully.

0:49:130:49:14

Back now to Sowerby Bridge, in West Yorkshire,

0:49:190:49:22

a pretty place with water and walks,

0:49:220:49:24

where earlier in the programme, this deceptive mid-terrace had a lot

0:49:240:49:29

more on offer inside than you'd guess from the street.

0:49:290:49:32

Four bedrooms to start with, but how did

0:49:320:49:35

all those rooms fit in this quirky terrace?

0:49:350:49:38

Up top there was a bedroom in the attic conversion.

0:49:380:49:41

And down below, there was a cellar.

0:49:410:49:44

And in the middle, three further bedrooms on the first floor.

0:49:440:49:49

Malcolm bought it for £70,000.

0:49:500:49:52

After 20 years in the motor trade, he decided that managing an Italian

0:49:520:49:57

supercar showroom wasn't driving him enough.

0:49:570:50:00

So, he'd taken a pit stop and moved into property developing.

0:50:000:50:05

This was his second property, but his first auction purchase.

0:50:060:50:11

-Have you got skills you can utilise?

-No.

0:50:110:50:13

-No?

-None.

-None at all?

-None at all.

0:50:130:50:16

Well, banging things and taking things out?

0:50:160:50:18

Yeah, I can just about do that

0:50:180:50:19

as long as somebody keeps their eye on me.

0:50:190:50:21

Well, that could come in handy, but Malcolm had done his homework,

0:50:210:50:25

so he knew this four-bedroom house had great potential.

0:50:250:50:29

Under £110,000,

0:50:290:50:31

there isn't another four-bedroom house on the market.

0:50:310:50:33

-Oh, wow.

-That's why I want to develop it to a certain level

0:50:330:50:37

and get it on the market with no competition whatsoever.

0:50:370:50:40

But he was going to need a fast lap to get it finished,

0:50:400:50:43

because he and his partner, Jo,

0:50:430:50:45

were expecting their first baby in just six and a half weeks.

0:50:450:50:49

# Fast car, slow traffic Fast car, slow traffic. #

0:50:490:50:54

Well, it's now three months later and back at the property,

0:50:540:50:57

all four of the floors have been refurbished.

0:50:570:51:00

But let's start in the kitchen, at the back of the ground floor.

0:51:000:51:04

Malcolm kept the floor plan the same, but replaced the units

0:51:060:51:09

and appliances.

0:51:090:51:10

Just practical mid-range equipment,

0:51:100:51:13

but I like how it looks

0:51:130:51:15

and Malcolm is pleased with the finish.

0:51:150:51:17

So, what we did is we took it back, re-skimmed,

0:51:170:51:20

put a new kitchen in using the same format, cos it's very functional.

0:51:200:51:23

New appliances went in. New flooring went down across.

0:51:230:51:27

And we painted.

0:51:270:51:29

And we've been left with a nice, bright, open, usable family kitchen.

0:51:290:51:33

Malcolm has kept his business head on here and not let

0:51:330:51:37

his heart overrule it.

0:51:370:51:38

Keeping reins on that tight budget meant he opted to keep

0:51:380:51:41

the kitchen layout the same.

0:51:410:51:43

And another thing that hasn't changed

0:51:430:51:45

is the great view across the hills.

0:51:450:51:47

But he's maintained a high finish throughout.

0:51:470:51:49

Just look at the living room.

0:51:490:51:52

Again, similar to the kitchen, we took this back to the brickwork,

0:51:520:51:56

replastered. We've decorated.

0:51:560:51:59

We've put new carpets in and we've replaced

0:51:590:52:02

the tired, old fireplace with an energy-efficient fire.

0:52:020:52:06

Kept it fresh. Nice, usable living room.

0:52:060:52:10

Up the two flights of stairs, at the very top of the house,

0:52:100:52:14

Malcolm has changed the formerly vibrant colours.

0:52:140:52:17

# Blue is the colour of the sky. #

0:52:170:52:23

These neutral shades will appeal to the widest market possible -

0:52:230:52:27

fresh and clean.

0:52:270:52:28

# Green is the colour of the sparkling corn. #

0:52:280:52:34

He's gone for a similar look in the three first-floor bedrooms.

0:52:340:52:38

As Lucy and I know - neutral, magnolia

0:52:380:52:42

and beige carpets can really open up a place.

0:52:420:52:45

Although I had reservations the bathroom was quite small,

0:52:470:52:50

using lighter tiles has definitely made it feel more spacious.

0:52:500:52:54

Ever conscious of his budget,

0:52:540:52:56

Malcolm has kept the original suite, which was good quality.

0:52:560:52:59

So, how did the timescale pan out for him and his partner, Jo?

0:52:590:53:03

Did they hit her delivery dates?

0:53:030:53:06

It went very well.

0:53:060:53:07

We sort of started at the top of the house

0:53:070:53:09

and worked our way down into finishing the property.

0:53:090:53:12

And we got as far as the door to the cellar,

0:53:120:53:14

when my beautiful, little daughter turned up.

0:53:140:53:17

I had three and a bit weeks off.

0:53:170:53:19

It was very difficult to peel myself away. So, we got back.

0:53:190:53:22

Although we said eight weeks, I think we've run over by about ten days.

0:53:220:53:27

When Malcolm returned, work on the cellar continued

0:53:270:53:30

and it's now a large utility and storage area.

0:53:300:53:34

Painting the wall and floor has made such a difference.

0:53:340:53:37

And to save money, he decided against putting in a patio door.

0:53:370:53:41

We didn't want to go to the extent of tanking out.

0:53:410:53:44

I had to resist the temptation to overdevelop this property,

0:53:440:53:47

as the price I would end up putting it on the market for would then be

0:53:470:53:51

into the competition.

0:53:510:53:53

Getting the right price point has been the main consideration

0:53:530:53:56

for Malcolm, and there have been some structural issues to deal with.

0:53:560:54:00

The joists in the kitchen and the hall needed replacing

0:54:000:54:03

and there has been some woodworm to treat.

0:54:030:54:05

But outside, there's been very little change.

0:54:050:54:08

The house had been recently rewired, so that was one saving.

0:54:080:54:13

But Malcolm decided to skim all the walls. So, did he stick

0:54:130:54:16

to his £7,500 budget?

0:54:160:54:19

I ended up over budget, about £850 over budget,

0:54:190:54:23

but I'm relatively pleased that it's come in within the 10% area.

0:54:230:54:28

With the £70,000 he paid at auction,

0:54:280:54:31

and his £8,350 spend,

0:54:310:54:34

that'll take his total outlay to £78,350.

0:54:340:54:39

We invited two local estate agents to come and tell us

0:54:390:54:43

what they think of the prospects for this property.

0:54:430:54:47

The property is good,

0:54:470:54:48

it's a traditional turn-of-the-century terraced house.

0:54:480:54:52

The bathroom is small, but the fittings are good.

0:54:520:54:55

The kitchen is bigger.

0:54:550:54:57

The changes to the property have been remarkable.

0:54:570:54:59

It's bright, modern, fresh and clean.

0:54:590:55:02

And the bathroom, again, is immaculate and fully tiled.

0:55:020:55:05

And the basement is going to be really useful.

0:55:050:55:08

Malcolm's already renting out his first investment property,

0:55:080:55:12

but he intends to sell this house.

0:55:120:55:13

So, do the estate agents think it will be worth more than

0:55:130:55:17

the £78,350 he's invested here?

0:55:170:55:20

We would estimate the sale value at approximately £100,000,

0:55:200:55:25

with a suggested asking price of 99,995.

0:55:250:55:30

I would value this property at £95,000.

0:55:300:55:33

Those valuations would mean a gross profit for Malcolm

0:55:330:55:36

of between £16,650

0:55:360:55:40

and £21,650 before taxes and expenses.

0:55:400:55:44

A little bit disappointed with it, a slightly lower figure.

0:55:440:55:47

I think I'll stick to my game plan, which is put it on the market at 110.

0:55:470:55:51

And if after 90 days it hasn't gone through,

0:55:510:55:55

we'll move it out into the rental market

0:55:550:55:57

and get a return on our investment that way.

0:55:570:55:59

What rental income could the house generate?

0:55:590:56:02

It makes a good rental property

0:56:020:56:04

and we would expect around about £500 per calendar month.

0:56:040:56:08

Renting for this, you are looking about £495 per calendar month.

0:56:080:56:13

Based on those valuations, that's a yield of over 7.5%.

0:56:130:56:18

Yeah, I think they're reasonable figures.

0:56:180:56:20

We're currently getting 495 on our two-bedroom property down the road.

0:56:200:56:23

I've certainly got interest from people paying

0:56:230:56:26

slightly more than that.

0:56:260:56:27

But it's in the ballpark, so I'm pretty happy with that.

0:56:270:56:30

Since filming, he's sold it for £108,500,

0:56:300:56:34

a pre-tax profit of over 30,000.

0:56:340:56:36

But which was more fun, cars or property?

0:56:360:56:40

Definitely houses, most evidently houses.

0:56:400:56:42

Although I was a bit disappointed in the figures, there's a good margin

0:56:420:56:45

in it for me, I'm my own boss and I keep...bar the tax,

0:56:450:56:49

I keep all the profit.

0:56:490:56:51

Well, that's it for now.

0:56:540:56:55

Join us next time for more properties

0:56:550:56:58

-that sold under the hammer.

-See you then.

-Goodbye.

-Goodbye.

0:56:580:57:01

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