0:00:02 > 0:00:04Hello. Now, in today's challenging market,
0:00:04 > 0:00:06do you think you could hack it in the world of property?
0:00:06 > 0:00:09If you get it right, it can be an exciting way to earn money,
0:00:09 > 0:00:11but you've got to be aware of the risks.
0:00:11 > 0:00:13But if you do decide to take the plunge,
0:00:13 > 0:00:17then auctions can be a great way to buy - under the hammer!
0:00:42 > 0:00:45There are tense moments in the auction room -
0:00:45 > 0:00:48who will make the right bid at the right time?
0:00:48 > 0:00:52Yes, properties can change people's fortune for better or worse.
0:00:52 > 0:00:57So, what inspired the buyers on today's show? Let's find out.
0:00:58 > 0:01:01In Whitehaven, Cumbria, I discovered that it's fairly easy
0:01:01 > 0:01:02to get to and from this house.
0:01:02 > 0:01:04In terms of those transport links,
0:01:04 > 0:01:08well, there's a train station right there!
0:01:08 > 0:01:10I take the fast train to Ramsgate,
0:01:10 > 0:01:13where this kitchen completely derails me.
0:01:13 > 0:01:18Come back in here and have a look at this. How disappointing is that?
0:01:18 > 0:01:22And in Stoke, I'm worried planning permission could hit the buffers.
0:01:22 > 0:01:25Any changes of use or changes to the building itself
0:01:25 > 0:01:29are going to be looked at very carefully by the planners.
0:01:29 > 0:01:33These properties were sold at auction. We'll find out who bought them,
0:01:33 > 0:01:36and what they paid for them when they went under the hammer.
0:01:36 > 0:01:37You bought it, sir, well done.
0:01:40 > 0:01:44Now, here's a good pub quiz question for you.
0:01:44 > 0:01:47Where in the UK, d'you think,
0:01:47 > 0:01:53has more listed buildings per square mile than anywhere else?
0:01:53 > 0:01:56London? Edinburgh, perhaps?
0:01:56 > 0:01:58Cardiff? York?
0:01:59 > 0:02:01Bath? No?
0:02:02 > 0:02:06It's Whitehaven in Cumbria. That's got you thinking, hasn't it?
0:02:06 > 0:02:11# Tell me if the sky is blue How old are you? #
0:02:11 > 0:02:14And if you're on a roll in the pub quiz,
0:02:14 > 0:02:17you could also add that Whitehaven's street grid might even have been
0:02:17 > 0:02:20the blueprint for New York.
0:02:20 > 0:02:25During the 18th and 19th century, Whitehaven was one of Cumbria's major ports,
0:02:25 > 0:02:28mainly due to the coal industry, and it's got a lot going for it today.
0:02:28 > 0:02:33So, not far from the centre of Whitehaven is the property I'm here to see.
0:02:33 > 0:02:36So, you've got good bus routes and railway links,
0:02:36 > 0:02:39pretty little seaside town and Carlisle and the Lake District
0:02:39 > 0:02:41on your doorstep - what more could you want?
0:02:41 > 0:02:45This is the property. It's a three-bedroomed ex-local authority house.
0:02:45 > 0:02:48It had a guide price of £50,000-60,000. Let's take a look.
0:02:50 > 0:02:52So, let's see what you get for your money.
0:02:54 > 0:02:59A bit of double-glazing - a good start, keep the noise and the cold out.
0:02:59 > 0:03:03Into this really useful entrance area. Lots of places to store your bits and pieces.
0:03:03 > 0:03:05Stairs up to your bedrooms.
0:03:05 > 0:03:08And straight away, I'm getting the feeling that it's a solid house.
0:03:08 > 0:03:10Ex-local authority, they usually are.
0:03:10 > 0:03:16Walls - yeah, no stud partition there. That's solid - I love that.
0:03:16 > 0:03:19Through into your, I guess, front lounge area.
0:03:19 > 0:03:24Fireplace - an open fire in there would be a nice touch.
0:03:24 > 0:03:26Ceiling - not to everyone's taste, this wood-look!
0:03:26 > 0:03:30More like a sauna than a house, but not to worry - soon have that down!
0:03:30 > 0:03:33Into the rear of the property where you've got this really,
0:03:33 > 0:03:36really practical kitchen/dining area.
0:03:36 > 0:03:39If's obviously in need of some updating,
0:03:39 > 0:03:42but I'm really excited because, just a bit of time and effort
0:03:42 > 0:03:45spent on this place, putting a new kitchen in,
0:03:45 > 0:03:47sorting it out, painting the walls,
0:03:47 > 0:03:48doing something with the ceiling,
0:03:48 > 0:03:53and you are going to dramatically change what is intrinsically a really good house.
0:03:53 > 0:03:57The house feels roomy and solid but does need a lot of work
0:03:57 > 0:04:00to bring it up to standard.
0:04:00 > 0:04:03And you'd have to be careful how much you spent on that work.
0:04:03 > 0:04:07Ex-local authority houses do usually have a ceiling price
0:04:07 > 0:04:11when it comes to the resale market.
0:04:11 > 0:04:14Well, upstairs - no great surprises in terms of the layout.
0:04:14 > 0:04:17Good landing area, three decent-sized bedrooms,
0:04:17 > 0:04:21a really nice family bathroom. Yes, it needs a new suite in there ideally,
0:04:21 > 0:04:23although you could probably get away with what there is.
0:04:23 > 0:04:26All in all, I'm not seeing anything that worries me.
0:04:26 > 0:04:32Yes, in some ways it's a really good first-timer project. Just a bit of paint on the walls,
0:04:32 > 0:04:35a bit of tender loving care, and your house would be really improved.
0:04:35 > 0:04:40And one fantastic thing about the property - really lovely open views.
0:04:40 > 0:04:46# What a beautiful view you are
0:04:46 > 0:04:49# Don't change. #
0:04:49 > 0:04:52And it's not just the view that's fantastic.
0:04:52 > 0:04:55It's the garden space, too. There's loads of room here.
0:04:55 > 0:04:59Perfect for kids playing, family barbecues, or just a stroll around.
0:04:59 > 0:05:02# Don't change. #
0:05:03 > 0:05:08Well, another real advantage of ex-local authority properties
0:05:08 > 0:05:11is that more often than not, they have reasonable-sized gardens.
0:05:11 > 0:05:14That's certainly the case here.
0:05:14 > 0:05:17As you can see, it stretches all the way down. You've got a bit of lawn.
0:05:17 > 0:05:18This area at the bottom here
0:05:18 > 0:05:22would be ideal for growing your own vegetables, a bit of an allotment.
0:05:22 > 0:05:24And then in terms of those transport links,
0:05:24 > 0:05:26well there's a train station right there!
0:05:26 > 0:05:30It does mean there's a train passing the bottom of the garden every now and then again,
0:05:30 > 0:05:35but in terms of convenience, and space - phew, big ticks in the boxes!
0:05:35 > 0:05:39# Pardon me, boy, is that the Chattanooga Choo Choo?
0:05:39 > 0:05:41# Yes, yes. #
0:05:41 > 0:05:45Despite the local railway network being, well, very local,
0:05:45 > 0:05:49it's a house full of potential.
0:05:49 > 0:05:52So with a huge garden and a guide price of £50,000-60,000,
0:05:52 > 0:05:54what's not to like?
0:05:54 > 0:05:59Let's find out what a local property expert thinks of it.
0:05:59 > 0:06:01There's plenty of room out towards the rear garden,
0:06:01 > 0:06:07for further extension, to create a conservatory.
0:06:07 > 0:06:11The kitchen itself is, you know, ample size,
0:06:11 > 0:06:15but a conservatory would provide another downstairs room as well.
0:06:15 > 0:06:18Obviously, if it was a growing family, there's room to move upstairs as well
0:06:18 > 0:06:21and extend into a fourth bedroom and perhaps an extra bathroom as well.
0:06:21 > 0:06:24Definitely lots of possibilities, then.
0:06:24 > 0:06:27But would there be much demand for this place?
0:06:27 > 0:06:30Most certainly. Yes, there's a high demand for...
0:06:30 > 0:06:32Especially with the first-time buyers,
0:06:32 > 0:06:36they're now looking for the extra bedroom space as well,
0:06:36 > 0:06:40which a lot of the two-bedrooms are quite compact properties. So, yes.
0:06:40 > 0:06:46How much could a renovation add to that £50-60,000 guide price?
0:06:46 > 0:06:51Once renovated, we could be looking between £85,000-£90,000.
0:06:51 > 0:06:54And if the buyer decided to let it?
0:06:54 > 0:06:57Then I would expect to achieve between £400 per calendar month
0:06:57 > 0:07:00and £450 per calendar month.
0:07:01 > 0:07:04Well, some cosmetic work needed to sort this one out
0:07:04 > 0:07:06but intrinsically a great little property.
0:07:06 > 0:07:10Love the views, good, popular location, close to Whitehaven,
0:07:10 > 0:07:11and a great guide price.
0:07:11 > 0:07:14Let's see who agreed when it went under the hammer.
0:07:14 > 0:07:17£50,000-£60,000 in the catalogue.
0:07:17 > 0:07:19Last quoted guide, start me off,
0:07:19 > 0:07:22top of the guide, shall we say on this, 60?
0:07:22 > 0:07:27Kill it dead with one bid, anybody? £60,000. 55, then.
0:07:27 > 0:07:29Get me away at 50.
0:07:29 > 0:07:34£50,000 seated. At £50,000, then.
0:07:34 > 0:07:39I'll take it in ones. And £50,000 I'm bid. At £50,000.
0:07:39 > 0:07:44£51, I've got. 52, may I say? 53, sir. 54.
0:07:44 > 0:07:4754, I've got. 55. 56.
0:07:47 > 0:07:4957. 58.
0:07:50 > 0:07:5258, I've got. 59.
0:07:55 > 0:07:5958 with you, madam. Can I say 59, sir? Thinking about it.
0:07:59 > 0:08:02It's with you, madam, seated at £58,000.
0:08:02 > 0:08:06At £58,000. Where's the men to compete with these women?
0:08:06 > 0:08:08At £58,000.
0:08:08 > 0:08:12Take a half, sir. Half, I've got. 59.
0:08:13 > 0:08:1659, I've got. And a half. And 60.
0:08:16 > 0:08:1960, I have. 60 and a half. Shake of the head at that. It's with you.
0:08:19 > 0:08:22It's £60,000, madam.
0:08:22 > 0:08:27At £60,000 are we done? First time... 60 and a half seated.
0:08:27 > 0:08:3161, may I say? And a half. 62.
0:08:33 > 0:08:34And a half. 63.
0:08:36 > 0:08:3863, I've got. And a half.
0:08:40 > 0:08:4563 and a half. 64, may I say? 64, I've got. 64,500.
0:08:48 > 0:08:5064 and a half, I've got.
0:08:50 > 0:08:5565. 65 and a half. A shake of the head at 65,500.
0:08:55 > 0:08:57At £65,000...
0:08:57 > 0:09:01First time... At 65, second time.
0:09:01 > 0:09:07At £65,000, then, third and final time, selling away, all done.
0:09:07 > 0:09:09Well done, madam, back row seated. Thank you.
0:09:09 > 0:09:12The rather surprised buyer was Karen,
0:09:12 > 0:09:17whose bid of £65,000 secured her the property.
0:09:17 > 0:09:20She works as a support worker for people with learning difficulties
0:09:20 > 0:09:24and bought it with her partner Peter, a scaffolder.
0:09:24 > 0:09:27They both have children from previous relationships,
0:09:27 > 0:09:29and are looking to this house to bring them
0:09:29 > 0:09:31all together in a new family home.
0:09:33 > 0:09:38# All together now, all together All together now. #
0:09:38 > 0:09:41I met up with them back there to hear about their plans for it.
0:09:41 > 0:09:45- Karen, Peter. Lovely to meet you both!- Nice to meet you, too.
0:09:45 > 0:09:48- Congratulations!- Thank you.- Tell me why you wanted to buy this place.
0:09:48 > 0:09:51I just seen it, and I was wanting to buy a property.
0:09:51 > 0:09:53So I just... I fancied this one
0:09:53 > 0:09:56because this is where my family and that live
0:09:56 > 0:10:01so I wanted to be close to family. When it came up, I just thought, "Oh, I'll just go for this one."
0:10:01 > 0:10:04- Luckily enough I got it.- So how was the auction?- I was nervous.
0:10:04 > 0:10:07It was really nerve-racking, I thought,
0:10:07 > 0:10:09cos I'd never been to one before and I thought,
0:10:09 > 0:10:13"Oh, I'll have a look and sort of see what the craic is with it."
0:10:13 > 0:10:17But then my lot came up second. So I was like, "Oh!"
0:10:17 > 0:10:22And it was my turn and I was like, "Oh!" I didn't know what to do.
0:10:22 > 0:10:26So I just kept going. And then... I had a set price in my mind I wasn't going past,
0:10:26 > 0:10:30but then I didn't know where it was, because I kept sort of doing this!
0:10:30 > 0:10:34And in the end I didn't know who got it, and it was me! And then I was shocked then,
0:10:34 > 0:10:37and I just thought, "I've just bought a house! Can't believe it!"
0:10:37 > 0:10:41I would normally recommend a BIT more preparation for an auction.
0:10:41 > 0:10:44But never mind - in this case, it seems to have paid off for Karen.
0:10:44 > 0:10:47So what are her plans here?
0:10:47 > 0:10:52We're going to get a new kitchen.
0:10:52 > 0:10:56- Just strip it right down, really, and just start again.- Yes.
0:10:56 > 0:10:58So any plans for any major structural work,
0:10:58 > 0:11:00or knocking walls out, or anything like that?
0:11:00 > 0:11:05Just might open up a door behind us, make it a double door.
0:11:05 > 0:11:07- A bit more light in there. - A bit more light,
0:11:07 > 0:11:12- and just that little wall in the kitchen. Just give it more space so we can have a breakfast bar.- Nice.
0:11:12 > 0:11:15- And who's going to be doing the work?- Mainly ourselves really.- Yeah.
0:11:15 > 0:11:19And then obviously professionals to put the kitchen in and stuff,
0:11:19 > 0:11:21but most of just the taking down, stripping walls
0:11:21 > 0:11:23and decorating ourselves.
0:11:23 > 0:11:26Great! And have you got much experience in this kind of stuff?
0:11:26 > 0:11:28Not really, no!
0:11:28 > 0:11:31Well, you've got to start somewhere getting experience, haven't you?
0:11:31 > 0:11:34As Peter's a scaffolder by trade,
0:11:34 > 0:11:38he knows a few handy pals who can help him with that work.
0:11:38 > 0:11:42He reckons they can get it all done in four months.
0:11:42 > 0:11:44But what do they think it will cost?
0:11:44 > 0:11:48We've got £10,000 to do it,
0:11:48 > 0:11:51but we don't know if we'll need any more or not.
0:11:51 > 0:11:54- I think we might need a bit more! - I don't know.
0:11:54 > 0:11:56Depends how much internal structure and stuff...
0:11:56 > 0:11:59I would have thought you'd be able to do it for that.
0:11:59 > 0:12:03Yes - it's just we've seen a nice kitchen and that was about six.
0:12:03 > 0:12:07- Six what?- Thousand. And... - Oh, OK(!)
0:12:07 > 0:12:08That was a good start.
0:12:08 > 0:12:11That was a good start, so we're like, "Oh!"
0:12:11 > 0:12:13You'll blow your whole budget on the kitchen!
0:12:13 > 0:12:16- I know!- Does she have expensive tastes in everything?
0:12:16 > 0:12:18Yeah, just a bit, like!
0:12:18 > 0:12:22But hopefully Karen's expensive tastes won't leave them short
0:12:22 > 0:12:25for the rest of the renovation.
0:12:25 > 0:12:29# Empty pockets But a heart full of love... #
0:12:32 > 0:12:37Because it sounds like she's got grand plans for the bathroom too!
0:12:39 > 0:12:43- I will want a Jacuzzi bath. - THEY LAUGH
0:12:43 > 0:12:45Well, they're cheap(!)
0:12:45 > 0:12:48And I'm going to knock out the cupboard and put a shower cubicle in.
0:12:48 > 0:12:52- I wish you luck with that. Good luck in general.- Thank you very much.
0:12:52 > 0:12:56- And try not to spend too much on the kitchen!- I won't!
0:12:56 > 0:13:01Well, I think Karen and Peter have done well with this property and it'll make them a great family home.
0:13:01 > 0:13:04Obviously, I'm a little bit concerned about the over-indulgences
0:13:04 > 0:13:07when it comes to doing up the kitchen.
0:13:07 > 0:13:10If you were doing this place up just to make a profit,
0:13:10 > 0:13:15then spending £6,000 on sorting out your kitchen is probably not the best move.
0:13:15 > 0:13:17But if you're going to live in it, well, what the heck!
0:13:17 > 0:13:21You can find out how beautiful it looks later in the show.
0:13:27 > 0:13:33Ramsgate in Kent is a lovely coastal town with a beautiful marina and bustling community.
0:13:33 > 0:13:37It's a great holiday destination and a vibrant place to live.
0:13:40 > 0:13:44The house I'm here to see today is on this busy A road, I'm afraid,
0:13:44 > 0:13:47so it's not ideal.
0:13:47 > 0:13:49But it's not a deal-breaker, I would say.
0:13:49 > 0:13:53Now, the guide price was £110,000-£120,000,
0:13:53 > 0:13:55so what have we got?
0:13:55 > 0:13:58Well, it's semi-detached, there's three bedrooms,
0:13:58 > 0:14:01and it looks good from the outside, so - positive!
0:14:01 > 0:14:05There's off-road parking, you've got double-glazing, and a sound-looking roof.
0:14:05 > 0:14:11So, so far so good, but will the good-looking outside match the inside?
0:14:11 > 0:14:14Only one way to find out!
0:14:14 > 0:14:21# I really think that we could make it, girl. #
0:14:23 > 0:14:26Oh, well, it certainly wouldn't win first prize in a beauty contest.
0:14:26 > 0:14:28It does need renovating.
0:14:28 > 0:14:29A little bit tatty,
0:14:29 > 0:14:33but you know, you could work wonders with the old paint, new carpet,
0:14:33 > 0:14:37got a really nice-sized lounge and an incredibly small kitchen.
0:14:37 > 0:14:39Come back in here. Now, have a look at this.
0:14:39 > 0:14:42How disappointing is that?
0:14:42 > 0:14:47But I think there may be a way to resolve that by simply knocking down this wall.
0:14:47 > 0:14:52Then you can have a really nice open plan kitchen there,
0:14:52 > 0:14:55diner here, big lovely family table.
0:14:55 > 0:15:00I don't know what that is - I think it's some kind of cobbled-together lean-to.
0:15:00 > 0:15:03Knock that down, big double doors here leading out to the garden,
0:15:03 > 0:15:07then you've got yourselves a really nice family space.
0:15:07 > 0:15:10That's what you've got to do to improve this floor plan.
0:15:10 > 0:15:16# We all need somebody to lean on Lean on me... #
0:15:16 > 0:15:21Mm! This lean-to is definitely for the heave-ho. Cheerio!
0:15:21 > 0:15:26But with a bit of rejig, the ground floor here could work so much better.
0:15:26 > 0:15:29Upstairs, there are three decent-sized bedrooms.
0:15:29 > 0:15:31They could all do with a bit of a freshen-up,
0:15:31 > 0:15:34and there's a family bathroom too.
0:15:34 > 0:15:39If that's not enough space for you, come with me into the garden, as I have a cunning plan!
0:15:40 > 0:15:44It's always worth taking a look at the neighbouring property.
0:15:44 > 0:15:48Snooping on them can really pay off! What am I talking about?
0:15:48 > 0:15:50Well, extensions!
0:15:50 > 0:15:54As you can see, people along here have added extensions.
0:15:54 > 0:15:58And so the all-important precedent has been set. Brilliant!
0:15:58 > 0:16:01Now, will that involve submitting plans
0:16:01 > 0:16:04and waiting weeks for the authorities to make a decision?
0:16:04 > 0:16:06Well, you can avoid all that
0:16:06 > 0:16:09if you keep within your permitted development rights.
0:16:09 > 0:16:12You can extend a dwelling by four metres to the rear
0:16:12 > 0:16:17if it's single-storey, or three metres if you do a double storey.
0:16:17 > 0:16:21So no need for planning permission, which is great news.
0:16:21 > 0:16:23There are height restrictions, of course,
0:16:23 > 0:16:26so my advice is check with your local council
0:16:26 > 0:16:30to make doubly sure you are within your permitted development rights
0:16:30 > 0:16:32before starting any work.
0:16:33 > 0:16:37You'd have to weigh up the costs the costs of extending
0:16:37 > 0:16:40against the value you'd actually add, and that will come down
0:16:40 > 0:16:45to what you're going to do with the place - let, sell, or move in.
0:16:45 > 0:16:47But before you make this your forever home,
0:16:47 > 0:16:49there's one more thing to consider.
0:16:49 > 0:16:53Whenever I buy property, I always like to draw up a little list -
0:16:53 > 0:16:57positives on one side of the page, negatives on the other.
0:16:57 > 0:17:00Now the positive here is the station.
0:17:00 > 0:17:04It's literally - look - just around the corner, so that is brilliant.
0:17:04 > 0:17:08But a big negative - you're right opposite a builder's yard!
0:17:11 > 0:17:14Handy if you're a roofer by trade.
0:17:14 > 0:17:17MUSIC: "Roofing Tiles" by Galliano
0:17:17 > 0:17:21The noise from lorries isn't ideal,
0:17:21 > 0:17:24but otherwise this place has got plenty going for it.
0:17:24 > 0:17:30Will a local property expert agree, though? Let's find out.
0:17:30 > 0:17:32At the moment, in the current market,
0:17:32 > 0:17:35I don't think it's advisable to extend the property.
0:17:35 > 0:17:39What I would do is refurbish the property to a nice standard,
0:17:39 > 0:17:41and then rent it out for a period of about a year,
0:17:41 > 0:17:45then look at maybe doing some extensions once you've got some money back.
0:17:45 > 0:17:49What could it fetch on the rental market?
0:17:50 > 0:17:54With this property, it's ideal for rental, and I would expect it
0:17:54 > 0:17:59to achieve round about £750-£800 per calendar month.
0:17:59 > 0:18:03And if sold on?
0:18:03 > 0:18:06I think if you were to modernise this house,
0:18:06 > 0:18:12you should get in the region of about £160,000-£170,000.
0:18:12 > 0:18:15And so it would seem creating an extension here
0:18:15 > 0:18:17isn't really the way to go.
0:18:17 > 0:18:19If you're looking to make money on this property,
0:18:19 > 0:18:23the advice I would give is to spend as little as possible
0:18:23 > 0:18:27and work within the confines of the current floor plan.
0:18:27 > 0:18:30Let's see who fancied this one as we go to auction.
0:18:30 > 0:18:34Lot 46, semi-detached, three bedrooms,
0:18:34 > 0:18:38off-road parking to the front.
0:18:38 > 0:18:41And what may I say? We've got a guide of 110 to 120. Start me at 110.
0:18:43 > 0:18:47Thank you at £110,000, I have. And £110,000, I'm bid.
0:18:47 > 0:18:50112, I'm bid and 14.
0:18:50 > 0:18:52115. 115, don't mind. 118.
0:18:52 > 0:18:56118, I'm bid. £118,000,
0:18:56 > 0:18:58lady's bid. £118,000.
0:18:58 > 0:19:02120, I'm bid. 122.
0:19:02 > 0:19:04122, I have. 124.
0:19:04 > 0:19:07124 is bid and 126. 125.
0:19:07 > 0:19:10125 is bid and 126.
0:19:10 > 0:19:17126, I have, and 127? No. 126, I am bid. 127, do I see?
0:19:17 > 0:19:21127 in a fresh place. 128. And 129.
0:19:21 > 0:19:24And 130. 132.
0:19:24 > 0:19:29132, 134. 134 is bid. 135?
0:19:31 > 0:19:33135. 36, if you're quick.
0:19:34 > 0:19:39Selling for the first time at £135,000. You have seconds to decide.
0:19:39 > 0:19:44For the second time at £135,000. Third and final... 136.
0:19:44 > 0:19:47137. 137.
0:19:47 > 0:19:52That's a definite no. I could even feel the vibrations up here!
0:19:52 > 0:19:59At £137,000, then, for the first time, £137,000 for the second time.
0:19:59 > 0:20:05£137,000. Third and final time. Are you all done? Sold at £137,000.
0:20:05 > 0:20:08And your bidder's number, sir?
0:20:08 > 0:20:13That successful bid of £137,000 came from Graham and his uncle Vic.
0:20:13 > 0:20:17They both live 115 miles away in Berkshire.
0:20:19 > 0:20:22Graham's a heating engineer, and his uncle Vic's a builder.
0:20:22 > 0:20:25They bought this house along with Graham's wife, Kathy.
0:20:25 > 0:20:27So what have they got planned here?
0:20:28 > 0:20:30- Graham, congratulations.- Thank you.
0:20:30 > 0:20:34So tell me the story behind you purchasing this at auction.
0:20:34 > 0:20:39I went there with myself and my uncle Vic, in partnership, and my wife as well,
0:20:39 > 0:20:43sat down, the auction started, 44 properties got by
0:20:43 > 0:20:47and on the 44th one we bought a property.
0:20:47 > 0:20:51Missed out on one, of course, and bought the 46th property as well.
0:20:51 > 0:20:55So hold on a minute - this was number 46 in the auction?
0:20:55 > 0:20:59- This was 46, yes.- But you bought number 44 as well?- We did, yeah.
0:20:59 > 0:21:03- What? Did you plan on buying two properties?- Not really. - What happened?
0:21:03 > 0:21:06You bought number 44, loved it so much, you thought, "We'll do that again"?
0:21:06 > 0:21:10We thought we'd got the hang of it, so we'd have another go, yeah!
0:21:10 > 0:21:14So d'you think 137 is a bargain, or about the right price,
0:21:14 > 0:21:16or you might have paid too much?
0:21:16 > 0:21:18I think it's probably about right.
0:21:18 > 0:21:22There's enough in it, I hope, for us to make a little bit of money on it.
0:21:22 > 0:21:25We're not looking to make a big killing, because as you can see the property's...
0:21:25 > 0:21:27there's not that much in it, but there's enough, I think.
0:21:29 > 0:21:33But that said, Graham is still thinking about an extension.
0:21:33 > 0:21:37On top of a new kitchen, bathroom, central heating system
0:21:37 > 0:21:40and new double glazing, that's quite a lot to take on.
0:21:40 > 0:21:42How are you going to improve the kitchen?
0:21:42 > 0:21:45That is a bit of a negative. It's very small, very boxy.
0:21:45 > 0:21:48How can you really make something of that?
0:21:48 > 0:21:52We hope to make this room and the kitchen, take the wall out,
0:21:52 > 0:21:54a kitchen diner.
0:21:54 > 0:21:58It'll be so much nicer, and then you'll have a lot more light. What about the little conservatory?
0:21:58 > 0:22:02If you don't extend, d'you think you'll just knock that down?
0:22:02 > 0:22:05We might knock it down and open the doors up
0:22:05 > 0:22:09to a nice sort of French doors going into the garden.
0:22:09 > 0:22:12Uncle Vic will do the building work and Graham the plumbing.
0:22:12 > 0:22:16What kind of budget do they have in mind for the whole renovation?
0:22:19 > 0:22:23Well, we're sort of thinking of around, sort of like 20,
0:22:23 > 0:22:25maybe 25 tops, on the budget for it.
0:22:25 > 0:22:27So, should be OK, I think, yes.
0:22:29 > 0:22:32So you think you'll be able to get an extension, and a new kitchen
0:22:32 > 0:22:36and a new bathroom and the new windows and a new boiler, all for £20,000?
0:22:36 > 0:22:38- I think, with my contacts, yes.- Really?
0:22:38 > 0:22:42So you think you can come in under 20 grand?
0:22:42 > 0:22:48- 20, 25.- OK. 20, 25, 30!- Maybe not.
0:22:48 > 0:22:52This could be the right house just to come in, do a fantastic job,
0:22:52 > 0:22:55structurally, leave it as it is, you know, tidy it up,
0:22:55 > 0:23:01maybe just take a wall out, and I think maybe that might be sufficient for a property like this.
0:23:01 > 0:23:05That might be exactly what we'll do. Could well be exactly what we'll do.
0:23:05 > 0:23:08And like you say, maybe just a general tidy-up, decorate,
0:23:08 > 0:23:12outside as well, tidy the gardens a little bit.
0:23:12 > 0:23:16I mean, my boys do gardening, so I'm all right on that.
0:23:16 > 0:23:18What d'you mean, your boys do gardening?
0:23:18 > 0:23:20I've got three sons. Two are landscape gardeners.
0:23:20 > 0:23:25Fantastic! Gosh, you know everyone! Everyone's going to be helping you out!
0:23:25 > 0:23:27When you were saying about could we do it at that budget,
0:23:27 > 0:23:32that's what I mean - I've got contacts. So we're very lucky.
0:23:32 > 0:23:33So what about your timescale?
0:23:33 > 0:23:37How long d'you think it's going to take you guys to really turn it around?
0:23:37 > 0:23:42- In honesty, you're looking probably 6-8 weeks for this job.- 6-8 weeks!
0:23:42 > 0:23:45I thought you was going to say months!
0:23:45 > 0:23:49I'm in the building game myself. I do plumbing, heating and gas fitting.
0:23:49 > 0:23:53Vic does everything else, probably.
0:23:53 > 0:23:57And what we don't do ourselves, we just get people in, like the electrician.
0:23:57 > 0:24:01And basically, that's why we thought this property will be
0:24:01 > 0:24:03a nice little project for us.
0:24:03 > 0:24:04Graham, good luck with this project.
0:24:04 > 0:24:08I cannot wait to see what you do here. I hope it all goes really well.
0:24:08 > 0:24:10- Thank you.- Thank you.
0:24:10 > 0:24:14To extend or not to extend - that is the question!
0:24:14 > 0:24:18And it's a question even Graham isn't prepared to answer!
0:24:18 > 0:24:24A 6-8 week timescale and a £20,000-£25,000 budget?
0:24:24 > 0:24:27He's really going to be calling in some favours to achieve that!
0:24:27 > 0:24:28But he seems confident.
0:24:28 > 0:24:32Join me later in the programme to find out what happened.
0:24:33 > 0:24:39Coming up - I'll be in Stoke getting into a spin over this staircase.
0:24:39 > 0:24:42And boy, oh, boy! What a staircase it is.
0:24:43 > 0:24:47Back in Ramsgate, there's been some friendly family rivalry.
0:24:47 > 0:24:50Graham did this all on his own. No help from me.
0:24:50 > 0:24:53- You can tell, can't you? - HE LAUGHS
0:24:54 > 0:24:58And in Whitehaven, has Karen's spending been kept under control?
0:24:58 > 0:25:03I tried my best, but when she wants something, she really wants it, so I couldn't stop her getting it!
0:25:07 > 0:25:09Let's return to Whitehaven in Cumbria
0:25:09 > 0:25:14where this 3-bedroom house sold at auction for £65,000.
0:25:14 > 0:25:16# Happy family... #
0:25:16 > 0:25:20It was bought by Karen and her partner Peter who intended to make it their new family home.
0:25:20 > 0:25:26# One big happy family, family... #
0:25:26 > 0:25:28The house needed a lot of work
0:25:28 > 0:25:33and Karen was already planning a high-end transformation.
0:25:33 > 0:25:38- We've seen a nice kitchen and that was about six.- Six what?- Thousand.
0:25:38 > 0:25:42- Oh, OK(!)- That wasn't a good start!
0:25:42 > 0:25:44That wasn't a good start so, we're like, "Oh!"
0:25:44 > 0:25:47- You're going to blow your whole budget on the blooming kitchen! - I know.
0:25:47 > 0:25:51- Does she have expensive taste in everything?- Just a bit, like!
0:25:51 > 0:25:55Karen and Peter each have a child from previous relationships,
0:25:55 > 0:25:59so they hoped this place, with its well-sized rooms
0:25:59 > 0:26:02and fantastic garden, would make a child-friendly home.
0:26:02 > 0:26:05But what have they done to it since we last saw them?
0:26:05 > 0:26:09We caught up with them six months later to find out.
0:26:16 > 0:26:20Although not quite finished, Karen's wish list has come good.
0:26:21 > 0:26:25First, that budget-busting kitchen is looking very smart.
0:26:25 > 0:26:28They've laid laminate flooring and opened up the door
0:26:28 > 0:26:32between the lounge and the kitchen creating a bright and open space.
0:26:34 > 0:26:37The bedroom walls have been replastered and painted
0:26:37 > 0:26:40and there's just the carpeting to lay.
0:26:40 > 0:26:44And Karen's wish list is complete with that whirlpool bath.
0:26:46 > 0:26:49I've changed it around and took a cupboard out
0:26:49 > 0:26:52and replaced it with a shower cubicle. I got the Jacuzzi bath I wanted.
0:26:54 > 0:27:00A new toilet and sink that I wanted as well. Just redecorated it.
0:27:00 > 0:27:05I'm pretty pleased with the outcome of the bathroom. I've happy I've got my bath that I wanted.
0:27:05 > 0:27:08Of course, there are finishing touches in here to be done as well,
0:27:08 > 0:27:12but it's already looking fresher and more modern.
0:27:12 > 0:27:15As is the kitchen downstairs.
0:27:17 > 0:27:20We've ripped all the ceilings down, ripped all the kitchen out.
0:27:20 > 0:27:24We've basically just started from scratch, really,
0:27:24 > 0:27:27and in the new kitchen the laminate flooring's down now,
0:27:27 > 0:27:30and really happy with the result that we've got, to be honest.
0:27:30 > 0:27:33This was the best kitchen that we could find.
0:27:33 > 0:27:35It was Karen's choice, to be fair, like,
0:27:35 > 0:27:39That's what she wanted, and I'm pleased with the effect of it
0:27:39 > 0:27:43and how it looks now, so I'm very happy with it.
0:27:43 > 0:27:47It will look even better down here when the final touches are added.
0:27:47 > 0:27:51So will the new door through to the lounge, which is benefiting
0:27:51 > 0:27:55from the extra space now that they've removed the fire and the shelves.
0:27:55 > 0:28:02# Open up the door And let the good times in... #
0:28:02 > 0:28:07Karen and Peter have used professional tradesmen for the electrics and plumbing.
0:28:07 > 0:28:12But it's been all-hands-on-deck for them, their friends and family.
0:28:12 > 0:28:16Well, to be honest, Peter's mam and stepdad's done most of it.
0:28:16 > 0:28:20Yes, they have really, but we've done a lot of the painting, haven't we?
0:28:20 > 0:28:21And our friends have helped.
0:28:21 > 0:28:26- Our friends have come down and give us a hand painting. - And helped Peter's family.
0:28:26 > 0:28:30They've got a few weeks' work left before it's complete,
0:28:30 > 0:28:34but it's still taken six months - two months longer than they originally thought.
0:28:34 > 0:28:38The delay was caused by a plasterer letting them down.
0:28:38 > 0:28:42That left us back a long time to get somebody else to finish the job really, to be fair.
0:28:42 > 0:28:45We couldn't really do anything until that was done,
0:28:45 > 0:28:48because we'd moved everything out to get it all done,
0:28:48 > 0:28:51then that why we're just at this level now but since
0:28:51 > 0:28:55we've got it finished plastered, it's come along a long way.
0:28:55 > 0:28:59We haven't obviously managed to finish it but we're hoping in the next couple of weeks it will be.
0:28:59 > 0:29:01We should be in really, to be honest.
0:29:01 > 0:29:03- So we need to get moved in, don't we?- Yeah!
0:29:05 > 0:29:09So they didn't stick to their schedule, but what about the budget?
0:29:09 > 0:29:13Originally they planned to spend £10,000 on all the work.
0:29:13 > 0:29:17# Don't say that it's over... #
0:29:18 > 0:29:22I'd say I've spent... I don't know!
0:29:22 > 0:29:25- A bit over. - About four grand over the budget.
0:29:25 > 0:29:30- And I've still got a bit to spend, but...- We're getting there. - We'll get there!
0:29:30 > 0:29:33Karen did warn us that she has expensive taste.
0:29:33 > 0:29:36They've put a real effort into making this their perfect home,
0:29:36 > 0:29:40even if all the little extras cost a bit more.
0:29:40 > 0:29:43But did Peter ever try to keep her under control?
0:29:43 > 0:29:45I tried my best, but when she wants something,
0:29:45 > 0:29:50she really wants it, so I couldn't really stop her getting it.
0:29:50 > 0:29:56What will two local property experts make of it? Let's find out!
0:29:58 > 0:30:02I think the changes have been made to this property are very, very good
0:30:02 > 0:30:03and very effective.
0:30:03 > 0:30:08It's been modernised throughout now to a very good standard.
0:30:08 > 0:30:11Work in progress, of course but I think so far, so good.
0:30:11 > 0:30:13I think when they've finished the property,
0:30:13 > 0:30:16it will be quite nice and done to quite a high standard.
0:30:16 > 0:30:19There's good quality bathroom and kitchen fittings
0:30:19 > 0:30:23and it's also ideally located for Whitehaven town centre.
0:30:23 > 0:30:26The open-plan layout is very much in at the moment
0:30:26 > 0:30:30for both houses and flats in the Whitehaven area.
0:30:30 > 0:30:32These buyers are obviously doing it to live in
0:30:32 > 0:30:36because the spec is much higher than perhaps an investor would...
0:30:36 > 0:30:40the work an investor would carry out if he was buying it
0:30:40 > 0:30:42to expose it to the rental market
0:30:42 > 0:30:46so it's fairly obvious it's a home owner that's bought it.
0:30:46 > 0:30:50Once the work's been finished in the house, what kind of price
0:30:50 > 0:30:53do the experts think this property would resell for?
0:30:53 > 0:30:57Remember, they bought it for £65,000
0:30:57 > 0:31:00and will spend around 14,000 on the renovation.
0:31:00 > 0:31:05So that's a total outlay here of approximately £79,000.
0:31:06 > 0:31:10I think it would probably achieve a sales figure
0:31:10 > 0:31:12in the region of £95,000.
0:31:12 > 0:31:15Once the property is finished to a high standard,
0:31:15 > 0:31:19I think they could achieve between £90,000-£95,000.
0:31:19 > 0:31:22- Yeah, happy with that.- Very happy with that.- Yeah, I am, are you?
0:31:22 > 0:31:24- Yeah, definitely.- Yeah.
0:31:24 > 0:31:28No wonder they're pleased. That would give them a fabulous profit
0:31:28 > 0:31:32of £16,000, minus any fees and taxes, of course.
0:31:34 > 0:31:39This may be a family home but would the success of this project
0:31:39 > 0:31:42tempt them into buying, renovating and selling other properties?
0:31:42 > 0:31:45- Yeah, it would tempt you. - Possibly tempting, yes.
0:31:45 > 0:31:47- Very tempting in fact. - BOTH CHUCKLE
0:31:47 > 0:31:50We'll get this one off the ground first I think before we do it.
0:31:50 > 0:31:53Chill out a few years before I think of anything else like that.
0:31:56 > 0:32:00Stoke-on-Trent is often simply known as Stoke
0:32:00 > 0:32:04but its full name derives from an Old English word used to describe
0:32:04 > 0:32:08a location for a meeting and sometimes worship.
0:32:08 > 0:32:12So "Stoke-on-Trent" means "meeting place on the River Trent."
0:32:13 > 0:32:18It's quite appropriate that I'm at that first place of meeting
0:32:18 > 0:32:19and worship here.
0:32:19 > 0:32:22This was where the first church in the area was built
0:32:22 > 0:32:27by missionaries from Lindisfarne in 670.
0:32:27 > 0:32:29That was originally built from wood.
0:32:29 > 0:32:34In more recent times, this stone church was built in its place.
0:32:34 > 0:32:40It's so significant that actually it's been made a minster.
0:32:40 > 0:32:46Well, the property I'm here to see couldn't be much closer, really.
0:32:46 > 0:32:47Literally just over there.
0:32:49 > 0:32:50CHORAL SINGING
0:32:50 > 0:32:52And this is it.
0:32:52 > 0:32:56A three-storey office and retail premises right next to
0:32:56 > 0:32:59the minster and in a great spot in the town centre.
0:33:01 > 0:33:04So will this property ring my bell?
0:33:07 > 0:33:10Well, it is certainly a substantial building.
0:33:10 > 0:33:13And right in the centre of Stoke.
0:33:13 > 0:33:18The guide price for the whole of this was just 50,000 quid,
0:33:18 > 0:33:21so what have we got and why was it so cheap?
0:33:21 > 0:33:23Well, here are the issues.
0:33:23 > 0:33:26It's a commercial and office building at the moment
0:33:26 > 0:33:29and we are in a conservation area which means that it has been
0:33:29 > 0:33:33designated of significant historical or architectural interest.
0:33:33 > 0:33:36Therefore any change of use or changes to the building itself
0:33:36 > 0:33:39are going to be looked at very carefully by the planners.
0:33:39 > 0:33:41So on the face of it, a great opportunity.
0:33:41 > 0:33:45There might be some caveats to that but let's take a look round anyway.
0:33:45 > 0:33:48Big, main area here. Obviously this was the main shop.
0:33:48 > 0:33:51Let's look around the rest of the building.
0:33:51 > 0:33:55Aside from this impressive, bright shop front downstairs,
0:33:55 > 0:33:58there's also a kitchen and a large storeroom.
0:33:58 > 0:34:03And remember there are also another two storeys above this one.
0:34:03 > 0:34:06Let's hope you don't suffer from vertigo
0:34:06 > 0:34:10because there's this amazing staircase to climb to get up there.
0:34:10 > 0:34:14# Spiral staircase going down
0:34:14 > 0:34:18# Paint your body red and brown. #
0:34:18 > 0:34:23Well, by far the most exciting opportunity for me is found
0:34:23 > 0:34:28when you go upstairs and boy, oh, boy, what a staircase it is.
0:34:28 > 0:34:33This incredible spiral staircase right through the building here
0:34:33 > 0:34:36linking the ground with the first and the second floors.
0:34:36 > 0:34:40Now, this obviously throws up the opportunity of potentially
0:34:40 > 0:34:42converting the whole building into flats.
0:34:42 > 0:34:45If you could get the planning permission for that
0:34:45 > 0:34:48and the conservation area approval and that kind of stuff,
0:34:48 > 0:34:50would it be worth doing?
0:34:50 > 0:34:54Well, you've certainly got the AREA to do it in terms of space.
0:34:54 > 0:34:57They would be spectacular. But it's not cheap. These days,
0:34:57 > 0:35:01building regulations, things like fireproofing,
0:35:01 > 0:35:04soundproofing between the different flats...
0:35:04 > 0:35:08It's an expensive process and before you even embark on it,
0:35:08 > 0:35:10you need to do market research.
0:35:10 > 0:35:14Is it worth it in this area? Is there a demand for it?
0:35:14 > 0:35:18Figure those things out and then decide whether you'll do it or not
0:35:18 > 0:35:24but in terms of space to do it in, fantastic.
0:35:24 > 0:35:27There's obviously plenty of potential.
0:35:27 > 0:35:32But is it as flats, offices or as a shop?
0:35:32 > 0:35:35Let's see what the top floor has to offer.
0:35:35 > 0:35:38# And I'm running up a spiral staircase
0:35:38 > 0:35:40# I can't reach the top
0:35:40 > 0:35:42# And there's nothing anybody can do
0:35:42 > 0:35:45# To stop the staircase Like a giant corkscrew
0:35:45 > 0:35:48# From spinning around
0:35:48 > 0:35:50# And around and around. #
0:35:50 > 0:35:54I still can't get over this staircase, it really is spectacular.
0:35:54 > 0:35:58It'd make such a wonderful feature in any development
0:35:58 > 0:36:01but it brings me to the top floor here.
0:36:01 > 0:36:03Again, loads and loads of space.
0:36:03 > 0:36:08I'd say enough for at least another two apartments here.
0:36:08 > 0:36:13Not quite as good in terms of head height up here so there's probably
0:36:13 > 0:36:16a bit more structural stuff you'll have to do
0:36:16 > 0:36:18but really nice aspect. Probably put double glazing in
0:36:18 > 0:36:21because there's going to be lots of noise from the road.
0:36:21 > 0:36:25But, yeah, in terms of square footage, bangs for your buck.
0:36:26 > 0:36:31£50,000 plus. A lot of property.
0:36:32 > 0:36:34'What does a local property expert think?
0:36:34 > 0:36:37'We asked one along to give us his opinion.'
0:36:44 > 0:36:46It's a well located property,
0:36:46 > 0:36:50in as much as it's on a very busy main road, it's a prominent location.
0:36:50 > 0:36:52It has got versatility,
0:36:52 > 0:36:55and can be used for a different number of commercial uses.
0:36:55 > 0:36:59It's going to need, obviously, some reconfiguration of
0:36:59 > 0:37:02the first and second floor,
0:37:02 > 0:37:04but there is potential, certainly,
0:37:04 > 0:37:07to create one or two bedroom apartments within the building.
0:37:09 > 0:37:12'If the owner did convert the two upper stories into flats,
0:37:12 > 0:37:15'and left the ground floor shop-front as is,
0:37:15 > 0:37:18'what kind of rental return could they yield?'
0:37:20 > 0:37:24The upper parts, where they've been converted into one or two bedroom
0:37:24 > 0:37:27apartments, probably somewhere in the region between
0:37:27 > 0:37:31£350-£375 per calendar month, something in that region.
0:37:31 > 0:37:34'So, those are the rental prices.
0:37:34 > 0:37:40'But what if the owner decided to sell it on, once the work was done?'
0:37:40 > 0:37:41If it was all fully let,
0:37:41 > 0:37:45and generating an income that was probably something in the region of
0:37:45 > 0:37:48about £15,000 per year,
0:37:48 > 0:37:54it should command a sale price of about £150,000 to £160,000.
0:37:54 > 0:37:57Well, this place certainly has potential,
0:37:57 > 0:37:59but a lot of effort to get it sorted out.
0:37:59 > 0:38:02Is it going to be commercial, is it going to be flats? Who knows?
0:38:02 > 0:38:05Well, it depends who bought it, let's find out who that was
0:38:05 > 0:38:06when it went under the hammer.
0:38:06 > 0:38:08What's this? 40 on this one.
0:38:11 > 0:38:1335 then. 35 bid, thank you.
0:38:13 > 0:38:15£35,000.
0:38:15 > 0:38:1640, going to say now.
0:38:16 > 0:38:2040, at £40,000.
0:38:20 > 0:38:2145? At 40,000. 45.
0:38:21 > 0:38:24Here go, 46. Yep, 46.
0:38:24 > 0:38:27New bidder. £47,000.
0:38:27 > 0:38:3048. 49.
0:38:30 > 0:38:34At £49,000, seated.
0:38:34 > 0:38:3749 and a half. 50.
0:38:37 > 0:38:39Half.
0:38:40 > 0:38:42At £50,000, and seated on the second row.
0:38:42 > 0:38:46£50,000 seated, first time.
0:38:46 > 0:38:50At £50,000, second time.
0:38:50 > 0:38:52£50,000, third and final time.
0:38:52 > 0:38:54Are we all done?
0:38:55 > 0:38:57You bought it, sir. Well done.
0:38:57 > 0:39:01'That final bid of £50,000 was made by Khaleem,
0:39:01 > 0:39:04'on behalf of himself and his friend, Khurram.'
0:39:04 > 0:39:10# It's just a little street
0:39:10 > 0:39:15# Where old friends meet... #
0:39:15 > 0:39:18'Khaleem owns and runs his own pharmacy.
0:39:18 > 0:39:21'While Khurram is an estate agent.
0:39:21 > 0:39:24'This is their first property venture together.
0:39:24 > 0:39:27'I met up with them, to hear what they've got planned.'
0:39:27 > 0:39:30- Khaleem, Khurram, lovely to meet you both.- And yourself.
0:39:30 > 0:39:32- Congratulations. - Thank you very much.
0:39:32 > 0:39:34Tell me why you wanted to buy this place.
0:39:34 > 0:39:36The opportunity came up.
0:39:36 > 0:39:38We've seen the guide price at £50,000,
0:39:38 > 0:39:40done a bit of due diligence, and I thought,
0:39:40 > 0:39:42"Well, it's got a huge amount of potential."
0:39:42 > 0:39:45So, have you got experience of this kind of project?
0:39:45 > 0:39:48Nothing to this scale. Done a couple of conversions already.
0:39:48 > 0:39:50Luckily, my brother's an architect,
0:39:50 > 0:39:53so we've got the right people to help guide me along the way.
0:39:53 > 0:39:55Erm, we've done a couple of properties whereby
0:39:55 > 0:39:58we've converted the houses into flats itself,
0:39:58 > 0:40:00so this is the same sort of thing, just on a grander scale.
0:40:00 > 0:40:02Right. OK.
0:40:02 > 0:40:07So, what was it really that appealed about this building, then?
0:40:07 > 0:40:10It was the opportunity of utilising both the office space,
0:40:10 > 0:40:12so we've got some commercial there,
0:40:12 > 0:40:16but we've also got the opportunity to convert three apartments.
0:40:16 > 0:40:18Effectively gives us a nice little rental income really.
0:40:18 > 0:40:22We're not looking to sell. More of a long-term investment for us.
0:40:22 > 0:40:25So, tell me what you're going to do to the place.
0:40:25 > 0:40:27On the ground floor, we're looking to,
0:40:27 > 0:40:29obviously subject to planning permission,
0:40:29 > 0:40:33looking to convert that into a one-bedroom apartment,
0:40:33 > 0:40:35and retain the office space.
0:40:35 > 0:40:38And on the first and second floor, two bed apartments.
0:40:38 > 0:40:42Right, great, great size, they'll be at two beds, won't they?
0:40:42 > 0:40:44- Yeah.- Fantastic space.
0:40:45 > 0:40:47And you talk about planning there, in passing,
0:40:47 > 0:40:49but obviously that's going to be a big thing.
0:40:49 > 0:40:50Yes, it is.
0:40:50 > 0:40:53Have you made some preliminary enquiries?
0:40:53 > 0:40:56- We are actually in the planning process at the moment.- Oh, wow.
0:40:56 > 0:40:59We should get a decision hopefully within the next 2-3 weeks.
0:40:59 > 0:41:01Fingers crossed, that should go through.
0:41:01 > 0:41:03Then hopefully within the next six months
0:41:03 > 0:41:04this project should be completed.
0:41:04 > 0:41:07'The friends have been quick off the mark to get
0:41:07 > 0:41:09'the planning application in,
0:41:09 > 0:41:11'so let's hope they don't have any trouble with it.
0:41:13 > 0:41:15'They think the work will cost 35,000,
0:41:15 > 0:41:17'which doesn't sound a lot,
0:41:17 > 0:41:20'given that there are three flats to build here.'
0:41:20 > 0:41:23Tell me exactly what you're going to get for your £35,000?
0:41:23 > 0:41:27- You're looking at three kitchens, three bathrooms.- Right.
0:41:27 > 0:41:30You're looking at electrics, to be fair,
0:41:30 > 0:41:32most of the electrics are up to regs.
0:41:32 > 0:41:37- What about the staircase? - It's a nice staircase, isn't it?
0:41:37 > 0:41:41In all fairness, we're not sure if that's protected at the moment.
0:41:41 > 0:41:43- You wouldn't want to change it anyway?- Not really, no.
0:41:43 > 0:41:44In all fairness.
0:41:44 > 0:41:48- Our only concern is the fire regs.- Ah.
0:41:48 > 0:41:50That's our only issue. Other than that, it should be fine.
0:41:50 > 0:41:53What kind of a look and feel are you going for the flats?
0:41:53 > 0:41:54Relatively modern.
0:41:54 > 0:41:59The kitchen, bathrooms, going to be nice and tidily...
0:41:59 > 0:42:03We're going to be utilising the space, shall we say.
0:42:03 > 0:42:06So what kind of involvement do you have sort of on an ongoing basis?
0:42:06 > 0:42:08I am possibly going to be doing the day-to-day management,
0:42:08 > 0:42:10getting all the tradespeople in, and so forth.
0:42:10 > 0:42:13Making sure we drive the budget down as much as possible,
0:42:13 > 0:42:15it would be nice to get down to 20,000 from that 35!
0:42:15 > 0:42:18Pffff!
0:42:18 > 0:42:19But we can try. We can try.
0:42:19 > 0:42:23But no, I'll be doing the day-to-day management on the property.
0:42:23 > 0:42:25What will your involvement be?
0:42:25 > 0:42:28I'll just make sure he does the job properly!
0:42:28 > 0:42:31- Congratulations to you. Good luck with it.- Thank you very much.
0:42:31 > 0:42:33Good luck with it. And in six months' time we will be back.
0:42:33 > 0:42:35- Fingers crossed. - Yeah, we should be done and dusted
0:42:35 > 0:42:38and then hopefully got some tenants in place. That would be good.
0:42:38 > 0:42:42- Something tells me you'll be successful. Well done.- Thank you.
0:42:42 > 0:42:45Well, it looks like the staircase is safe
0:42:45 > 0:42:49as Khaleem and Khurrum start their plans,
0:42:49 > 0:42:52or even continue their plans that have already started
0:42:52 > 0:42:55to convert this place into flats with that shop at the front.
0:42:55 > 0:43:00Still, can they really do this for just £35,000?
0:43:00 > 0:43:04And will they get that all-important planning permission
0:43:04 > 0:43:07and change of use? You can find out later in the show.
0:43:10 > 0:43:13Well, if you want to profit from property, timing is crucial.
0:43:13 > 0:43:16And you have to be flexible with your plans.
0:43:16 > 0:43:21And not let time pass you by. Let's see how today's buyers got on.
0:43:21 > 0:43:25Welcome back to Kent. Ramsgate, to be precise.
0:43:25 > 0:43:33Earlier we saw Graham and his uncle Vic snap up this three-bedroom house at auction for 137,000.
0:43:35 > 0:43:38# And no matter if we win or lose
0:43:38 > 0:43:41# Gonna keep the family groove. #
0:43:41 > 0:43:44'The pair both work in the building trade.
0:43:44 > 0:43:47'But this was their first property venture together.
0:43:47 > 0:43:50'They were certainly packing a lot into it.'
0:43:50 > 0:43:54So you think you'd be able to get an extension and a new kitchen,
0:43:54 > 0:43:58and a new bathroom, and the new windows and the new boiler, all for 20,000?
0:43:58 > 0:44:01I think, eh, with my contacts, yeah, yeah.
0:44:01 > 0:44:04Really? So you think you can come in under 20 grand?
0:44:04 > 0:44:07- I'd...20, 25.- OK.- Yeah.
0:44:07 > 0:44:10'And if keeping within that budget wasn't pressure enough,
0:44:10 > 0:44:14'they gave themselves just eight weeks to do all the work.
0:44:14 > 0:44:16'In fact, it's taken almost a year.'
0:44:20 > 0:44:23# If you take your time
0:44:23 > 0:44:26# You'll get what you want
0:44:26 > 0:44:29# If you take your time
0:44:29 > 0:44:33# Honey, you'll get just what you want
0:44:34 > 0:44:37# So don't a-hurry me, worry me,
0:44:37 > 0:44:40# Hurry me, take it easy, baby. #
0:44:40 > 0:44:42Starting off, obviously we've redecorated.
0:44:42 > 0:44:48We took the kitchen wall down, opened it up, made it open space.
0:44:48 > 0:44:53Fitted a new kitchen. Re-tiled the bathroom.
0:44:53 > 0:44:56And just generally tidied up everywhere.
0:44:56 > 0:44:58New doors, lights, fittings and things like that.
0:44:58 > 0:45:01# Take it easy, honey. #
0:45:01 > 0:45:04OK, so the renovation is fairly standard,
0:45:04 > 0:45:09but it's a clean, fresh makeover. Simple yet effective.
0:45:12 > 0:45:16They've also given the garden a makeover.
0:45:16 > 0:45:19Hm. But something seems to be missing out here.
0:45:19 > 0:45:21Where's that extension they were going to build?
0:45:23 > 0:45:25We had advice from an estate agent locally,
0:45:25 > 0:45:32and, eh, basically we would have put it on and got no profit out of it at all. So we left that.
0:45:32 > 0:45:35We just tidied up the little lean-to that's there now, basically.
0:45:35 > 0:45:39New bits of glass, a coat of paint and a bit of a roof.
0:45:39 > 0:45:43A wise move, then. Why spend money on an extension
0:45:43 > 0:45:45that won't add any value to the property?
0:45:45 > 0:45:47This is a business venture, after all.
0:45:47 > 0:45:52And talking of money, how did they get on with that 20 grand budget?
0:45:52 > 0:45:58Oh, yeah, the budget. Well, we would have gone up to about 20,000.
0:45:58 > 0:46:01But we're scraping around the 16 mark at the moment,
0:46:01 > 0:46:05which we're very happy with. You could spend 20.
0:46:05 > 0:46:10You good put in better fitments, kitchens and things like that.
0:46:10 > 0:46:12You know, there's not the money there for a conservatory,
0:46:12 > 0:46:17so we doctored - I hate to say it, doctored - the old thing out there.
0:46:17 > 0:46:22Not having to build that extension certainly helped to keep the budget under control.
0:46:22 > 0:46:25But this uncle and nephew team also managed
0:46:25 > 0:46:29to keep the labour costs to an absolute minimum.
0:46:29 > 0:46:35Myself and Vic done all the work apart from fitting the new PC board.
0:46:35 > 0:46:38We're not qualified electricians,
0:46:38 > 0:46:41so we had a qualified electrician in to do that part.
0:46:41 > 0:46:44A local guy, very good. Erm...
0:46:44 > 0:46:47The rest of it we did ourselves, yeah.
0:46:47 > 0:46:51I love doing kitchens as well, but Graham fitted all this on his own. No help from me.
0:46:51 > 0:46:55You can tell, can't you?!
0:46:55 > 0:46:58So, under budget.
0:46:58 > 0:47:01But what happened to that eight-week timescale?
0:47:01 > 0:47:04It sounds as though the 230-mile round trip from here
0:47:04 > 0:47:07back to their homes in Berkshire, took its toll.
0:47:10 > 0:47:12It's killed us a bit, like. You know, the time we get here,
0:47:12 > 0:47:15er, do the day's work and then travel home,
0:47:15 > 0:47:22er, it's a long day. That's probably why we've had quite a lot of holidays in between doing the work!
0:47:22 > 0:47:25It is just an hour and three quarters, you know, minimum.
0:47:25 > 0:47:28And that's leaving at...
0:47:28 > 0:47:32..seven in the morning and getting here sort of quarter to nine.
0:47:32 > 0:47:37You know, you're ready to eat by then. It is not good. Not good.
0:47:37 > 0:47:41The time spent travelling between the house, their families
0:47:41 > 0:47:44and other work commitments, may have prevented them
0:47:44 > 0:47:47from being as full on with the work as they'd originally hoped.
0:47:47 > 0:47:51But Graham reckons they weren't far off their original target.
0:47:51 > 0:47:55Actual working time, yes, we have sort of done it.
0:47:55 > 0:47:58I'd say two and a half months, three months, I suppose,
0:47:58 > 0:48:00if you're going to count the actual days, yeah.
0:48:00 > 0:48:04Now all that hard graft's done and the long drives are over,
0:48:04 > 0:48:06does Vic think it's been worth it?
0:48:09 > 0:48:10We reckon we will make a profit.
0:48:10 > 0:48:15It won't be... There won't be no Rolls-Royces outside or anything
0:48:15 > 0:48:19but I do think we could come out of it with a reasonable profit.
0:48:21 > 0:48:25So let's find out whether two local property experts agree with him.
0:48:28 > 0:48:30Wow, it's quite a transformation.
0:48:30 > 0:48:31The chaps who were doing it
0:48:31 > 0:48:33have obviously spent a lot of time and money
0:48:33 > 0:48:36really bringing it up to a good standard.
0:48:36 > 0:48:38They've put in really neutral decor which is excellent,
0:48:38 > 0:48:41and of course, the new kitchens and bathrooms,
0:48:41 > 0:48:43which are really both very good quality.
0:48:43 > 0:48:45First impressions -
0:48:45 > 0:48:47it's been refurbished to a good standard.
0:48:47 > 0:48:48I like the downstairs,
0:48:48 > 0:48:50the way the accommodation flows.
0:48:50 > 0:48:52I would imagine it would be
0:48:52 > 0:48:55of great interest to those that are looking in this area.
0:48:55 > 0:48:58Good schools locally, good range of shops,
0:48:58 > 0:48:59grammar school's particularly strong
0:48:59 > 0:49:02so I'd think there'd be quite a lot of interest in the property.
0:49:02 > 0:49:05I think this property's going to appeal to a family,
0:49:05 > 0:49:07perhaps with two children.
0:49:07 > 0:49:09It's got a nice garden with it
0:49:09 > 0:49:12and it's close to all the local conveniences and all the local shops
0:49:12 > 0:49:14so it's good for a family, I think.
0:49:16 > 0:49:19Now it's all finished, how much could it be worth?
0:49:19 > 0:49:20Remember,
0:49:20 > 0:49:22they've spent £16,000 on the work
0:49:22 > 0:49:27so including the £137,000 they paid for it at auction,
0:49:27 > 0:49:30that's a total outlay of £153,000.
0:49:33 > 0:49:35I think this property in current condition,
0:49:35 > 0:49:37the way the market is at the moment,
0:49:37 > 0:49:41you're probably going to be looking at around about £170,000.
0:49:41 > 0:49:44I would think that we would be looking to achieve
0:49:44 > 0:49:46offers in the region of £160,000-£165,000,
0:49:46 > 0:49:50and I would suggest probably marketing just under the 170,000.
0:49:50 > 0:49:53Well, I think that's low myself.
0:49:53 > 0:49:56I think it's low. We've had somebody else.
0:49:57 > 0:50:00They're...5,000, 10,000 higher than that.
0:50:00 > 0:50:04- Yeah.- And they're pretty confident, so we're quite happy with that.
0:50:04 > 0:50:07The boys are hoping to get around 180,000 for the property
0:50:07 > 0:50:11when they resell. They've already got another one lined up
0:50:11 > 0:50:12for their next project
0:50:12 > 0:50:16but this time round, they've made sure it's closer to home.
0:50:23 > 0:50:26Now we travel back to Stoke-on-Trent,
0:50:26 > 0:50:28where in the shadow of Stoke Minster
0:50:28 > 0:50:31lay this three-storey office and retail premises.
0:50:32 > 0:50:36It sold at auction for just £50,000 to Khurram and Khaleem,
0:50:36 > 0:50:40two friends teaming up together for their first property venture.
0:50:40 > 0:50:45# You and me, we are friends
0:50:45 > 0:50:48# Friends right up till the end... #
0:50:48 > 0:50:53What was it really that appealed about this building, then?
0:50:53 > 0:50:56It was the opportunity of utilising both the office space,
0:50:56 > 0:50:58so we've got some commercial there,
0:50:58 > 0:51:01but also the opportunity to convert three apartments
0:51:01 > 0:51:03effectively gives us a nice little rental income.
0:51:03 > 0:51:06We're not looking to sell. It's more of a long-term investment for us.
0:51:06 > 0:51:10This duo certainly had a clear plan in mind
0:51:10 > 0:51:12but had challenges to face.
0:51:12 > 0:51:15The front of the building was listed, so they knew
0:51:15 > 0:51:19that any changes to the shop would be subject to planning approval
0:51:19 > 0:51:21and of course, the £35,000 budget
0:51:21 > 0:51:24for the three flats over the three storeys
0:51:24 > 0:51:25was always going to be a challenge.
0:51:27 > 0:51:30Let's catch up with them and see how they've fared.
0:51:44 > 0:51:47A lot has happened since you were last here.
0:51:47 > 0:51:49We've converted this commercial building
0:51:49 > 0:51:51into three self-contained flats
0:51:51 > 0:51:54and we're still going to retain the office space.
0:51:56 > 0:51:59It's a simple but bright and modern conversion,
0:51:59 > 0:52:01making great use of the floors
0:52:01 > 0:52:04to create stylish living spaces.
0:52:04 > 0:52:07But don't worry - even though that is a new staircase,
0:52:07 > 0:52:11they haven't got rid of the beautiful old one.
0:52:11 > 0:52:14It's still curling its way through the property.
0:52:14 > 0:52:18So it looks like planning permission wasn't much of a problem, then -
0:52:18 > 0:52:20or was it?
0:52:20 > 0:52:22Planning was a slight issue.
0:52:22 > 0:52:27There were a number of objections, mainly around the ground-floor flat.
0:52:27 > 0:52:29We wanted to create, like, a studio apartment
0:52:29 > 0:52:31but the planning wanted a bedroom on this
0:52:31 > 0:52:33so Khurram decided in talks with the architect
0:52:33 > 0:52:35to create a bedroom upstairs.
0:52:36 > 0:52:40They didn't want to eat into the retail space on the ground floor,
0:52:40 > 0:52:43so with some clever rejigging,
0:52:43 > 0:52:46they managed to give the flat a bedroom.
0:52:46 > 0:52:48We managed to form a creative solution
0:52:48 > 0:52:51by creating this little stairway which leads upstairs. Basically,
0:52:51 > 0:52:53we took a bedroom from the first-floor flat
0:52:53 > 0:52:56and gave it to the ground-floor flat, which satisfies the planners' needs
0:52:56 > 0:52:58and it's turned out quite well, in all honesty.
0:52:58 > 0:53:01They've given it a fairly simple finish
0:53:01 > 0:53:04but that's because they intend to let it all out
0:53:04 > 0:53:07so they want to leave a blank canvas.
0:53:07 > 0:53:11In fact, it won't be very long until the rooms are full.
0:53:11 > 0:53:13As soon as the work started
0:53:13 > 0:53:15we advertised the property available to let,
0:53:15 > 0:53:17and we've already got two professionals
0:53:17 > 0:53:20ready to occupy the top flat and the ground-floor flat.
0:53:25 > 0:53:28There's still a lot of work to complete here,
0:53:28 > 0:53:31especially on the ground-floor retail space.
0:53:31 > 0:53:34It's still a bit of a building site at the moment,
0:53:34 > 0:53:38but they hope to get this occupied soon too.
0:53:38 > 0:53:40The intention is either for myself to come in
0:53:40 > 0:53:42and utilise it as an estate agency
0:53:42 > 0:53:45or second to that, we have had an offer
0:53:45 > 0:53:47for a third party to come and use it.
0:53:49 > 0:53:51They'd set aside 35 grand for all the work
0:53:51 > 0:53:53but that still wasn't enough.
0:53:55 > 0:53:57We've slightly gone over the budget
0:53:57 > 0:54:00but that's mainly due to the building regulation side of things
0:54:00 > 0:54:03and the way we've had to amend our initial plans
0:54:03 > 0:54:04for planning permission.
0:54:04 > 0:54:09However, we will be approximately £5,000 or £7,000 above budget.
0:54:09 > 0:54:12# Hey, big spender... #
0:54:12 > 0:54:15That's a total spend of around £40,000-£42,000
0:54:15 > 0:54:18so bearing in mind that the place cost them 50,000,
0:54:18 > 0:54:21that's quite a lot. Mind you,
0:54:21 > 0:54:23there was a great deal to do here.
0:54:25 > 0:54:27So to help decide whether it's been worth it,
0:54:27 > 0:54:29we asked two local property experts
0:54:29 > 0:54:31to take a look and give us their thoughts.
0:54:33 > 0:54:35It's a very big place.
0:54:35 > 0:54:38The owner's definitely had his work cut out refurbishing this property
0:54:38 > 0:54:39and the finishes are OK.
0:54:39 > 0:54:41'Each property has really good-sized rooms
0:54:41 > 0:54:44'and this will help when trying to market an apartment
0:54:44 > 0:54:46'because a lot of apartments have small rooms.
0:54:46 > 0:54:48'The layout's quite good. It works.'
0:54:48 > 0:54:51There's a central stairwell for all three apartments
0:54:51 > 0:54:52and it does its job.
0:54:52 > 0:54:55There's been quite a bit of work that's been done,
0:54:55 > 0:54:57but there's obviously quite a bit of work left to do.
0:54:57 > 0:54:59The standard of finish
0:54:59 > 0:55:01is what I would expect for a property of this calibre
0:55:01 > 0:55:03and this type of location.
0:55:03 > 0:55:07The ground-floor shop obviously still needs a considerable amount of work
0:55:07 > 0:55:11before that's going to be ready to be put on the open market to let.
0:55:11 > 0:55:12Let's talk figures.
0:55:12 > 0:55:16Once all the work's complete, what rental could they achieve?
0:55:16 > 0:55:19First, for the two one-bedroom flats...
0:55:21 > 0:55:24The one-bedroom apartments would rent at £350 per calendar month.
0:55:24 > 0:55:27I would expect the one-bedroom apartment to be offered
0:55:27 > 0:55:30for about £375 per calendar month.
0:55:30 > 0:55:34And what about the one two-bedroom apartment upstairs?
0:55:35 > 0:55:39The two-bedroom apartment would rent out for £395 per calendar month.
0:55:39 > 0:55:42I would expect the two-bedroom apartment to be offered to the market
0:55:42 > 0:55:46for somewhere between £395 per calendar month
0:55:46 > 0:55:48to £425 per calendar month.
0:55:48 > 0:55:51They're a lot lower than what we've actually achieved.
0:55:51 > 0:55:55We've achieved a ceiling price of 425 on the top-floor flat,
0:55:55 > 0:55:57which is the two-bedroom,
0:55:57 > 0:56:00and the ground-floor flat, we're at 410,
0:56:00 > 0:56:01so we've done well there.
0:56:01 > 0:56:06And finally, what could they get for the retail space?
0:56:06 > 0:56:10Having looked at the space, the location and what it can be used for,
0:56:10 > 0:56:14I would expect that to be offered at around about £4,000 per annum.
0:56:14 > 0:56:18The commercial premises would rent out at £5,000 per annum.
0:56:18 > 0:56:22Basically, having done our sums beforehand, it's what we'd expected,
0:56:22 > 0:56:23between the figure of 4,000, 5,000,
0:56:23 > 0:56:25so we're happy with that.
0:56:27 > 0:56:29Based on the experts' top figures,
0:56:29 > 0:56:33that's an annual income of £19,700 -
0:56:33 > 0:56:36an impressive yield of around 15%.
0:56:36 > 0:56:39So a great return for the boys.
0:56:39 > 0:56:43But have they enjoyed working on this project together?
0:56:43 > 0:56:47It's been great, in all fairness. We've learned lots. We've enjoyed it.
0:56:47 > 0:56:50Bit of a challenge here and there, but overall, I'd love to do it again.
0:56:52 > 0:56:56Well, we'll have lots more great stories for you next time
0:56:56 > 0:56:58here on Homes Under The Hammer.
0:56:58 > 0:57:00- So join us then.- Goodbye.- Goodbye.
0:57:22 > 0:57:24Subtitles by Red Bee Media Ltd