0:00:02 > 0:00:06- Hello and welcome.- Auctions are very interesting places to buy property.
0:00:06 > 0:00:13- Maybe that's why they've become so popular.- Thousands of lots are sold each year under the hammer.
0:00:38 > 0:00:43People who buy regularly at auction know all the tricks of the trade.
0:00:43 > 0:00:50One way to make sure you're not inheriting a whole load of problems is to read the legal pack.
0:00:50 > 0:00:56Yes, it is better to be safe than sorry, so what got the buyers going on today's programme?
0:00:57 > 0:01:02In Staffordshire, I come across something a little different.
0:01:02 > 0:01:07It could be a money pit, but it'll be a really interesting property.
0:01:07 > 0:01:13In Upminster, Essex, this house is almost ready to rent out.
0:01:13 > 0:01:18How often do I say that on this programme? Not often.
0:01:18 > 0:01:25Whereas in Barrow-in-Furness in Cumbria, you could make so much more of this bungalow.
0:01:25 > 0:01:28Is it worth doing? Up to you.
0:01:28 > 0:01:34All these properties have been sold at auction. We'll find out who bought them and what they paid
0:01:34 > 0:01:37when they went under the hammer.
0:01:39 > 0:01:46This is Newcastle-under-Lyme in Staffordshire, home to North Staffordshire University Hospital,
0:01:46 > 0:01:51which these days also houses the Keele University Medical School.
0:01:51 > 0:01:55That means this is a good location to think about investing in property
0:01:55 > 0:01:59as where there are medical students, there's a wealth of tenants.
0:01:59 > 0:02:06Well, the property I'm here to see does not disappoint from the outside at all. Just look at it.
0:02:06 > 0:02:11Fantastic sort of Gothic style. It's very Addams Family, isn't it?
0:02:11 > 0:02:14What could possibly be wrong?
0:02:14 > 0:02:18Well, it's an ex-council property, but not in the way you might think.
0:02:19 > 0:02:22Yes...it's the cemetery lodge.
0:02:22 > 0:02:25# It's so quiet in here
0:02:26 > 0:02:28# It's so peaceful in here
0:02:29 > 0:02:33# It's so quiet in here It's so peaceful... #
0:02:33 > 0:02:38This certainly meets the criteria for those looking for peace and quiet.
0:02:38 > 0:02:46Undoubtedly, its position by the cemetery will put some people off, but guided at £100,000 plus,
0:02:46 > 0:02:53this is an opportunity to acquire a rather splendid-looking property with a large plot - garden plot!
0:02:53 > 0:02:55# It's so quiet in here
0:02:56 > 0:02:59# It's so peaceful in here
0:02:59 > 0:03:02# It's so quiet in here... #
0:03:02 > 0:03:06Despite its quiet location, it's a short walk to the town centre.
0:03:09 > 0:03:13Now this building was previously the cemetery administration offices,
0:03:13 > 0:03:18so when you walk through the front door, you get that office feeling.
0:03:18 > 0:03:22What have we got? Through here a hatchway,
0:03:22 > 0:03:27rooms, it all feels very solid. The brick's exposed in certain places.
0:03:27 > 0:03:32All these doorways with their mullions, it's all really solid.
0:03:32 > 0:03:39But the biggest issue straight away is the fact that it was offices, so it has planning permission for that.
0:03:39 > 0:03:46The good news is that it has been applied to be changed and this can now be used as residential.
0:03:46 > 0:03:49That's a really good starting point.
0:03:49 > 0:03:51The next job...
0:03:51 > 0:03:55is just converting it into something you'd want to live in.
0:03:56 > 0:03:59It does feel a bit, well, municipal.
0:03:59 > 0:04:06The council-style colours and office look does make it feel rather unwelcoming. On the other hand,
0:04:06 > 0:04:10you could really use your imagination with this one.
0:04:10 > 0:04:14It's not just office space. There's also a kitchen and toilet,
0:04:14 > 0:04:22but as the lodge has been unoccupied for a while and there's a defunct boiler, the place has got cold
0:04:22 > 0:04:25and it's starting to show signs of damp.
0:04:25 > 0:04:31So up a fairly narrow staircase to your three bedrooms.
0:04:31 > 0:04:37They're all good sizes. That one there, another through this dogleg, and another one here.
0:04:37 > 0:04:42What you haven't got is a toilet or a bathroom,
0:04:42 > 0:04:47so clearly that is a) a bit of a surprise and b) a bit of a disappointment,
0:04:47 > 0:04:52but it comes back to this not being a house someone was living in.
0:04:52 > 0:04:56It's more commercial premises, so maybe it isn't so surprising,
0:04:56 > 0:05:01but it has to be addressed. The rooms have really nice, high ceilings.
0:05:01 > 0:05:08Small windows. Adds character, doesn't bring in a lot of light. A few nice fireplaces left.
0:05:08 > 0:05:12It's... It's going to need work. It could potentially be a money pit,
0:05:12 > 0:05:16but it would be a really interesting property when it's done.
0:05:16 > 0:05:20# I'm special, so special
0:05:20 > 0:05:26# I gotta have some of your attention Give it to me... #
0:05:26 > 0:05:32This is a special and unique property and deserves some attention.
0:05:32 > 0:05:36I think it needs to be viewed as not just a blank canvas,
0:05:36 > 0:05:42but as a blank shell, because it will need a lot of rejigging and moving of internal walls
0:05:42 > 0:05:48to make the most of the space here. It's going to cost, but if you've got the brass in your pocket,
0:05:48 > 0:05:52I think the end result could be well worth it.
0:05:52 > 0:05:56It's not just the house. There's also the land it sits on.
0:05:56 > 0:06:03Well, as you might have imagined, the property comes with a really nice plot of land.
0:06:03 > 0:06:07This is it. Lots of trees, mature shrubs. It'd be lovely cleared up.
0:06:07 > 0:06:13You might actually think perhaps this also does have the potential to be possibly a building plot.
0:06:13 > 0:06:19This is where you must read the legal pack. There is a covenant that says specifically
0:06:19 > 0:06:23that you can't turn this into anything other than a garden,
0:06:23 > 0:06:28so forget about building something. It's not going to happen.
0:06:28 > 0:06:33One person likely to have an inkling of what to do with this property given its unusual location
0:06:33 > 0:06:36is a local estate agent.
0:06:36 > 0:06:39We asked for an opinion on this place,
0:06:39 > 0:06:42guided at £100,000 plus.
0:06:42 > 0:06:48Sitting on the entrance to the local cemetery, any redevelopment to the property
0:06:48 > 0:06:52needs to be in keeping with the setting.
0:06:52 > 0:06:58Subject to planning permission, I'd recommend redeveloping the property into a unique
0:06:58 > 0:07:04detached family home, keeping the character and original features.
0:07:04 > 0:07:08What could it be worth once you've done all that work?
0:07:08 > 0:07:13Obviously dependent on the finish and the conversion taken,
0:07:13 > 0:07:20I'd be looking to achieve in the region of £225,000 to £275,000.
0:07:20 > 0:07:22What about renting it out?
0:07:22 > 0:07:29On the rental market, you can look between £750 and £900 per calendar month.
0:07:29 > 0:07:34Well, all sorts of properties end up at the auction
0:07:34 > 0:07:38and this is certainly one of the more unusual ones.
0:07:38 > 0:07:44It's not quite as simple as it seems and a solicitor should check out the legal pack,
0:07:44 > 0:07:50but apart from that, I'm sure it got them going when it went under the hammer.
0:07:52 > 0:07:56Lot number one. Attractive, Gothic-style detached property.
0:07:56 > 0:07:5990,000. Start me at 90.
0:07:59 > 0:08:0190 bid. Thank you. At £90,000.
0:08:01 > 0:08:06At 100, can I say now? £100,000, seated. 110. Do you want to go 115, sir?
0:08:06 > 0:08:09115 standing now.
0:08:09 > 0:08:12120. 125.
0:08:12 > 0:08:15130. 135 at the front.
0:08:15 > 0:08:20Standing. Took it. At the front, 135.
0:08:20 > 0:08:22140.
0:08:22 > 0:08:24145. 150?
0:08:24 > 0:08:26150.
0:08:26 > 0:08:28155.
0:08:28 > 0:08:29160?
0:08:29 > 0:08:35New bidder. 160. At 160. Do you want to go one, sir? 161?
0:08:35 > 0:08:36162.
0:08:38 > 0:08:42No. Shaking your head. 162, still with you, sir. Seated.
0:08:42 > 0:08:45At £162,000 the first time.
0:08:45 > 0:08:50At £162,000 for the second time. Third and final time, bid's there.
0:08:50 > 0:08:56£162,000. Are we all done? You've bought it, sir. Well done.
0:08:57 > 0:09:04So for £162,000, the successful bidders were Jill and Alan.
0:09:04 > 0:09:08They're both retired teachers and live 30 minutes away.
0:09:08 > 0:09:14I met them at the cemetery lodge to find out their plans for this rather unusual property.
0:09:15 > 0:09:21- Jill, Alan, great to meet you both. - Thank you.- Congratulations. Interesting property!
0:09:21 > 0:09:26- Glad you think so! - Tell me why you wanted to buy it.
0:09:26 > 0:09:31Its location, mainly. When I came to the property for the first time, I just loved the building.
0:09:31 > 0:09:38It's certainly unusual. Very grand. So what did you buy it for? What was the driving force?
0:09:38 > 0:09:46We are student landlords in the area and we look after a number of students, so we decided
0:09:46 > 0:09:50- to expand. - What got you into student lets?
0:09:50 > 0:09:56Many years ago, when our son was going to university, we went to Nottingham to look for property
0:09:56 > 0:10:02and some of the ones we saw were just so horrible, you know, that when time came
0:10:02 > 0:10:06for us to think about this, we thought, "We'll go for high end.
0:10:06 > 0:10:10"We'll go for really nice home from home properties."
0:10:10 > 0:10:14They started doing student lets five years ago.
0:10:14 > 0:10:20Since then, they've built up a successful business with four other properties
0:10:20 > 0:10:23which they maintain and let on 11-month short leases.
0:10:23 > 0:10:27The plan is to do the same with this building.
0:10:27 > 0:10:34- Why this place?- It's near to Newcastle. It's literally a 10-15 minute walk to the hospital.
0:10:34 > 0:10:40And even if we don't attract medical students, which are the main type of student we have,
0:10:40 > 0:10:44it's about a 10-minute bus ride to Keele itself.
0:10:44 > 0:10:46Right. But it's a cemetery lodge.
0:10:46 > 0:10:51- It's a very quiet location, yes. - We're going to change the name!
0:10:51 > 0:10:53Drop the word "cemetery".
0:10:53 > 0:10:57- Call it The Lodge!- Yes! - But it's still by the cemetery.
0:10:57 > 0:11:02- I think its quirkiness will give it an added attraction.- OK.
0:11:02 > 0:11:08- So what are you planning to do to it, then?- It's going to be six bedrooms, two en suite.
0:11:08 > 0:11:12There will be two main bathrooms, one upstairs, one downstairs,
0:11:12 > 0:11:17- and one communal area and a fully-fitted kitchen.- Right. - And a utility area.
0:11:17 > 0:11:24- What's the kind of budget? - We've got a figure in mind of £30,000-£40,000.- Seems realistic.
0:11:24 > 0:11:27You know the auction price. We purchased it at 162.
0:11:27 > 0:11:30Overall, we're looking around £200,000.
0:11:30 > 0:11:35In order to achieve their six student rooms, two en suite,
0:11:35 > 0:11:39along with two bathrooms and a fully-fitted kitchen,
0:11:39 > 0:11:46they'll gut the house. They'll employ a building team to do the work.
0:11:46 > 0:11:50They hope to get it ready for the student rental market in 5 months
0:11:50 > 0:11:54and hope for a total monthly rental income of around £2,300.
0:11:56 > 0:12:02- Were there any nasty clauses in the purchase contract?- We had one little bit that was unusual,
0:12:02 > 0:12:07in terms of the actual legal document itself that we questioned.
0:12:07 > 0:12:13- Really? What was that about?- It was the wording about the property itself, that if it was resold,
0:12:13 > 0:12:19the council had the right to rebuy it at the selling price.
0:12:19 > 0:12:26- Which is the price we paid at auction.- What?!- 20 years' time, how could you possibly have that right?
0:12:26 > 0:12:32- So they had to rejig the wording so it was the land itself outside.- OK.
0:12:32 > 0:12:36- The property is different. - You spotted it and got it changed? - Oh, yes.
0:12:36 > 0:12:39Well done for spotting it.
0:12:39 > 0:12:45- So are you excited about it? - Yes, I am.- Absolutely. - Yes, I'm really, really enthused.
0:12:45 > 0:12:50I hope it comes to meet your expectations. Good luck with it.
0:12:50 > 0:12:54- I look forward to seeing how you get on.- Thank you.- Thank you.
0:12:55 > 0:12:59Well, clearly Alan and Jill are delighted to have got this place
0:12:59 > 0:13:04and they certainly seem to have a potentially lucrative plan for it,
0:13:04 > 0:13:11but there's lots of conversion to be done and any more nasties in terms of the legal pack?
0:13:11 > 0:13:14Hopefully not. Find out how they get on later in the show.
0:13:16 > 0:13:21When buying property, everyone has their own tick list,
0:13:21 > 0:13:27the things that are vitally important to them. Each person will have a unique wish list,
0:13:27 > 0:13:30a criteria that their chosen property must meet.
0:13:30 > 0:13:37Here in Upminster, Essex, transport links are fantastic, there's an Underground and train station,
0:13:37 > 0:13:42property values aren't sky high and it's home to a windmill.
0:13:42 > 0:13:48Not something on most people's checklist, but it's certainly a local attraction.
0:13:49 > 0:13:53Built in 1803, flour was produced here until 1910.
0:13:53 > 0:14:00The question is will today's auction lot get me in a spin or just, well, grind me down?
0:14:00 > 0:14:05With wind in my sales, I set off in search of today's auction property.
0:14:05 > 0:14:10A 20-minute walk or a 10-minute bus ride from the Tube station
0:14:10 > 0:14:14and I'm here to see today's auction lot. It's a semi-detached house.
0:14:14 > 0:14:19It has three bedrooms and a guide price was set at £240,000.
0:14:19 > 0:14:27What I can see of the outside looks promising, but you'll need to get busy with the strimmer and shears
0:14:27 > 0:14:31to improve its kerb appeal. ..It's quite overgrown out there,
0:14:31 > 0:14:34but neat and tidy in here. What a contrast!
0:14:34 > 0:14:40This is a lovely hallway. Look, somewhere to put a console table, hang your coats,
0:14:40 > 0:14:46put a nice mirror up there. It's got a very welcoming feeling the minute you walk through the door.
0:14:46 > 0:14:50Nice sitting room. A second reception room is bright and sunny.
0:14:50 > 0:14:54And this is the kitchen at the back of the property. Look at it!
0:14:54 > 0:15:00You wouldn't have to do much in here at all. The units are in good condition, this is tiled.
0:15:00 > 0:15:04Maybe I would change the lino for nice, big tiles.
0:15:04 > 0:15:11Get rid of the strip lighting. But this house is the sort of property you could move into straight away
0:15:11 > 0:15:15and how often do I say that on this programme? Not often.
0:15:15 > 0:15:23# How often have I told you that I love you
0:15:23 > 0:15:29# How often have I told you that I care? #
0:15:29 > 0:15:34I know what this property is saying to me - rental opportunity.
0:15:34 > 0:15:39I can see many buy to let investors falling over themselves for this.
0:15:39 > 0:15:45Buy it and let it. There doesn't appear to be any major work required so far.
0:15:45 > 0:15:50With a guide price of £240,000, this house looks very interesting.
0:15:50 > 0:15:55Let's hope I'm not in for a big shock up on the first floor.
0:15:55 > 0:16:00Well, I am just as excited upstairs as I was downstairs.
0:16:00 > 0:16:04Much of the same. Two fabulous rooms there for bedrooms.
0:16:04 > 0:16:08A little box room there and through here is the bathroom.
0:16:08 > 0:16:14But look at all this space. You could get rid of that and have a really nice L-shaped bathroom.
0:16:14 > 0:16:18This house is just a bit too good to be true, really.
0:16:18 > 0:16:22# Too good to be true... #
0:16:22 > 0:16:27This three-bed semi doesn't seem to need much work. If you were short on funds,
0:16:27 > 0:16:32the water tank could stay where it is and my viewing isn't finished.
0:16:32 > 0:16:36There could be even more accommodation to rent out.
0:16:36 > 0:16:42Another bedroom? Maybe in central London. Not here in Essex.
0:16:43 > 0:16:48So a walk-in wardrobe, perhaps? Now you're talking.
0:16:48 > 0:16:53Outside, and the good times show no sign of abating.
0:16:53 > 0:16:59OK, like the front it's a tad overgrown, but this garden is truly fabulous.
0:16:59 > 0:17:05Many buyers have on their wish list a garage and, yes, you guessed it, this house has its own garage!
0:17:05 > 0:17:11However, experience has taught me that people do like one more thing to seal the deal.
0:17:11 > 0:17:15If you're looking around a property and you're feeling uninspired,
0:17:15 > 0:17:20just do what I do - take a peek next door to see what's possible.
0:17:20 > 0:17:24Now this is what it could look like. Fantastic!
0:17:24 > 0:17:30And it's a great way to just pinch ideas. After all, imitation is the highest form of flattery.
0:17:30 > 0:17:34How about some off-road parking? That's what I'm talking about.
0:17:34 > 0:17:40It's a super way of adding value and making a property much, much more saleable.
0:17:41 > 0:17:46We invited a local estate agent along to ask for his thoughts.
0:17:46 > 0:17:49This property is guided at £240,000.
0:17:53 > 0:17:56I'd stick with the existing layout,
0:17:56 > 0:18:02purely because for long-term saleability, there isn't much to be gained by extending.
0:18:02 > 0:18:08So leave the layout as it is, but how much could it sell for after a full refurbishment?
0:18:08 > 0:18:14Once renovated, I believe we could sell it on for something in the region of £300,000-£315,000?
0:18:14 > 0:18:18The all-important figure for a buy to let investor is the rent,
0:18:18 > 0:18:21so how much could it generate?
0:18:21 > 0:18:28Once renovated, we could rent this out for somewhere in the region of £1,100-£1,150 per calendar month.
0:18:28 > 0:18:33There's money to be made here so this is a great one to go for, in my opinion.
0:18:33 > 0:18:39Pay the right price, carry out a simple refurbishment and you could sell on for a profit
0:18:39 > 0:18:43or rent this out and achieve a good yield. It's win/win.
0:18:43 > 0:18:46Let's see who else thought so when it went under the hammer.
0:18:46 > 0:18:51Right, move on to Lot 54. A three-bed, semi-detached house.
0:18:51 > 0:18:55Who'd like to kick off on this? 230?
0:18:55 > 0:18:58230. 235, sitting down.
0:18:58 > 0:19:00235.
0:19:00 > 0:19:02240?
0:19:02 > 0:19:04240. 245.
0:19:04 > 0:19:07250. 250. 255.
0:19:07 > 0:19:10260.
0:19:10 > 0:19:11265?
0:19:11 > 0:19:13261.
0:19:13 > 0:19:14262.
0:19:14 > 0:19:17263, yeah?
0:19:17 > 0:19:19264?
0:19:19 > 0:19:23264, elsewhere? 264? If not, 263.
0:19:23 > 0:19:29First time. Second time. Third and last time.
0:19:29 > 0:19:32Have you all done? 263.
0:19:32 > 0:19:37The new owner of this three-bed semi in Upminster is Keith.
0:19:37 > 0:19:43The hammer fell at £263,000. He was at the auction with his son, Justin.
0:19:43 > 0:19:48Keith lives in Billericay, Essex, and runs a chain of tanning salons.
0:19:48 > 0:19:54# I'm Billericay Dickie and I'm doing very well... #
0:19:55 > 0:19:59Congratulations, guys. What's the story behind wanting to buy this?
0:19:59 > 0:20:06Well, we develop properties. I've been buying properties for the last 10 years on a buy to let basis
0:20:06 > 0:20:12and Justin said to me last year that he'd like to be refurbing and developing.
0:20:12 > 0:20:18- So here we are.- Your dad's given you the opportunity for a taster. Dipping your toe in the water.- Yeah.
0:20:18 > 0:20:23- Is he ready for this?- Yeah. Basically, my life's quite easy.
0:20:23 > 0:20:28- I write the cheques and he has all the aggravation. - Exactly how it should be!
0:20:28 > 0:20:34After 10 years of developing, Keith has earned the right to relax, take things easy
0:20:34 > 0:20:39and hand the stress down to his son, Justin.
0:20:39 > 0:20:45He's already had to put his trust in his son because he hadn't viewed the house before the auction
0:20:45 > 0:20:51and Justin only had time to see it from the outside. So Keith took a punt on this one.
0:20:51 > 0:20:56Tell me what it was like when you came inside and saw this.
0:20:56 > 0:21:02Really pleased seeing the good condition. There's not too much that needs doing.
0:21:02 > 0:21:05Basically, it needs a bit of modernisation, good decoration.
0:21:05 > 0:21:09There's things we might change - the kitchen and the bathroom.
0:21:09 > 0:21:13But basically I think it's a pretty bog standard refurb.
0:21:13 > 0:21:20Yes, I agree. Keep it simple, guys. But I'm not sure about replacing the kitchen.
0:21:20 > 0:21:24They plan to sell the house. ..Why do you want to sell this on?
0:21:24 > 0:21:30This is obviously the venture for Justin. It's to turn it round, make a profit and move on to the next.
0:21:30 > 0:21:36- Justin, are you nervous? It all rests on your head.- To be honest, I'm all right. We've done stuff,
0:21:36 > 0:21:41maybe not down this road, but other things with him in business before.
0:21:41 > 0:21:43So I'm not too nervous about it.
0:21:43 > 0:21:49- Do you work with your dad a lot? - Yeah, we work together quite a bit. - So you are a father/son team.
0:21:49 > 0:21:52What else do you two do?
0:21:52 > 0:21:57My main business, which I've been in since 1984, is tanning salons.
0:21:57 > 0:22:00I've got a chain of salons through Essex, London and Hertfordshire.
0:22:00 > 0:22:08About 10 years ago, I diversified and went into property and now I work with Justin on developing.
0:22:17 > 0:22:23They also produce their own tanning products and it's a business that keeps Keith busy,
0:22:23 > 0:22:30but property has also proved to be lucrative. Did they know what it would cost to get this in order?
0:22:30 > 0:22:33What sort of budget have you got to change things here?
0:22:33 > 0:22:38We're looking probably about £15,000, £20,000 on this one.
0:22:38 > 0:22:43- So how long's it going to take? - I would say maximum 8 weeks. - Can you stick to that?
0:22:43 > 0:22:46I'd say hopefully a month.
0:22:46 > 0:22:52You're saying a month, you say double that. It's going to be interesting to see who's right!
0:22:52 > 0:22:55It might be in the middle!
0:22:55 > 0:23:02- Guys, it's been fantastic meeting you. Good luck with this.- Thank you. - I hope it really does work out.
0:23:03 > 0:23:05The pressure is on for Justin!
0:23:05 > 0:23:09Keith has decided to take a very hands-off approach here.
0:23:09 > 0:23:15He wants this to be a learning experience for his son and with very little work to do,
0:23:15 > 0:23:21it's a great one to start with. Having said that, houses can throw up all sorts of problems
0:23:21 > 0:23:26when you start the work. Is it going to take Justin's optimistic four weeks to do?
0:23:26 > 0:23:29Or realistic Dad's eight weeks?
0:23:29 > 0:23:33You can find out how they get on later on in the programme.
0:23:34 > 0:23:41Coming up: in Barrow-in-Furness, Cumbria, this bungalow could be changed in, oh, so many ways.
0:23:41 > 0:23:44Options to consider.
0:23:45 > 0:23:50We return to Upminster in Essex to get dad Keith's verdict on his son's work.
0:23:50 > 0:23:55Justin's done fantastically well. He's overlooked the whole project.
0:23:56 > 0:24:01But first it's back to Staffordshire to see Alan and Jill's unusual student digs.
0:24:01 > 0:24:04The actual restoration worked well.
0:24:09 > 0:24:14In Newcastle-under-Lyme, Staffordshire, I came across a remarkable building
0:24:14 > 0:24:18with Gothic towers, quirky windows and a slate roof.
0:24:18 > 0:24:22This 1860s detached property was anything but the norm.
0:24:22 > 0:24:28Along with a decent-sized garden and plenty of parking, it was also in a great location
0:24:28 > 0:24:34for the nearby hospital and university. Yet it was in very quiet surroundings
0:24:34 > 0:24:39where the neighbours were unlikely to cause too many problems.
0:24:39 > 0:24:44For a start, it's an ex-council property, but not how you might think.
0:24:44 > 0:24:46Yes, it's the cemetery lodge.
0:24:48 > 0:24:53And if its position in the cemetery grounds didn't put some people off,
0:24:53 > 0:24:56the amount of internal work might.
0:24:56 > 0:25:02This former council office building had lain empty for a couple of years. There were signs of damp
0:25:02 > 0:25:08and with a layout that was perhaps fine for office work, but not so great for a residential building,
0:25:08 > 0:25:12this was going to be a tricky refurbishment.
0:25:12 > 0:25:19But for retired teachers Jill and Alan, this looked ideal for their student let business.
0:25:20 > 0:25:25So they paid £162,000 to buy this rather quirky lot.
0:25:26 > 0:25:29What got you into student lets?
0:25:29 > 0:25:35Many years ago, when our son was going to university, we looked for property for him to stay in.
0:25:35 > 0:25:42Some of the ones we saw were so horrible, we thought we'd go for high-end, home from home properties.
0:25:42 > 0:25:47So with a budget of £30,000-£40,000, Alan and Jill were hoping to turn this
0:25:47 > 0:25:55into student accommodation by creating six bedrooms with a shared common area, kitchen and bathrooms.
0:25:55 > 0:26:03But the clock was ticking and they needed to get the work done in five months for the student year.
0:26:03 > 0:26:07So having employed a local building team, they cracked on with the work.
0:26:07 > 0:26:11Now, just four months later, we're back.
0:26:13 > 0:26:18Perhaps not surprisingly, the outside hasn't changed much, though there is a new front door.
0:26:18 > 0:26:21But what lies behind?
0:26:23 > 0:26:27Well, it's certainly a more welcoming hallway.
0:26:27 > 0:26:30No more hatches, just smooth plastered walls.
0:26:30 > 0:26:35And those old office rooms? They're now three downstairs bedrooms.
0:26:35 > 0:26:39One at the front and one behind it.
0:26:41 > 0:26:46Then there's a third en suite bedroom also at the front.
0:26:46 > 0:26:50This is one of the original rooms in the property, dating back to 1860.
0:26:50 > 0:26:54It was then latterly used as an office for the council.
0:26:54 > 0:26:57It had an open doorway through into the room next door.
0:26:57 > 0:27:03We wanted to block it off to make an independent room for students, as well as having an en suite.
0:27:03 > 0:27:09It's bigger than some rooms, but smaller than others. We're pleased with the outcome.
0:27:09 > 0:27:17Putting in a dividing wall has allowed them to create a communal lounge out of the back office area.
0:27:27 > 0:27:33And off this communal lounge there's now a shared bathroom and kitchen.
0:27:34 > 0:27:38Originally in here there was very little you'd call a kitchen.
0:27:38 > 0:27:45We started increasing the space by knocking down the pantry wall to enlarge the space available.
0:27:45 > 0:27:52We then rebuilt it with all the new units and new appliances to make a lovely kitchen area.
0:27:52 > 0:27:57And with a nice colour scheme, too. I'm sure they'll enjoy cooking here.
0:27:57 > 0:28:03So the kitchen's greatly improved. And with the old toilet area converted into a utility space
0:28:03 > 0:28:09and a new boiler fitted, the downstairs area is ready to go.
0:28:09 > 0:28:14Upstairs, the three main rooms have been converted into three more bedrooms,
0:28:16 > 0:28:18one with a fantastic en suite.
0:28:23 > 0:28:27And two other good-sized, fully-furnished rooms.
0:28:29 > 0:28:33So with six bedrooms and high quality communal spaces,
0:28:33 > 0:28:39this former office building looks as though it has a lot to offer as student accommodation.
0:28:39 > 0:28:43And it seems the internal work wasn't finished a minute too soon.
0:28:43 > 0:28:45Absolutely staggered.
0:28:45 > 0:28:49When we took it to market, it was in a back-to-brick state
0:28:49 > 0:28:53and we had three sets of students around within 24 hours.
0:28:53 > 0:28:59- We had promised it would be ready in time.- They took a leap of faith and believed us and signed up.
0:28:59 > 0:29:01# Take a leap of faith
0:29:02 > 0:29:05# Take a leap of faith... #
0:29:05 > 0:29:10They certainly did take a leap of faith, but Alan and Jill have also delivered.
0:29:10 > 0:29:14It's fantastic. They've managed to rent out all the rooms.
0:29:14 > 0:29:20But did they have to throw more money at it to get everything done in time?
0:29:20 > 0:29:24Originally, we suggested a budget of 35,000 to 40,000.
0:29:24 > 0:29:29We then made the decision to upgrade on top of that,
0:29:29 > 0:29:34so the bathroom fitments, we decided to move away from just a plain, standard fitment.
0:29:34 > 0:29:40The lights above, the Velux windows above, we wanted more light in the house as you enter it,
0:29:40 > 0:29:42so we changed those,
0:29:42 > 0:29:45which has taken us up to 43,000.
0:29:46 > 0:29:51A £43,000 spend on top of a £162,000 purchase price
0:29:51 > 0:29:57takes their total outlay without costs or fees to 205,000.
0:29:57 > 0:30:00Having dug deep to make this a great place for students,
0:30:00 > 0:30:03have they also made a solid investment?
0:30:03 > 0:30:06What do two local estate agents think?
0:30:06 > 0:30:11They've done a fantastic renovation to this property, inside and out.
0:30:11 > 0:30:15It's a lovely character building and they've restored it very nicely.
0:30:15 > 0:30:18It will stand out as a student residence.
0:30:18 > 0:30:22This is definitely high quality student accommodation,
0:30:22 > 0:30:28but as a resale property, have the couple added any value to their £205,000 investment?
0:30:29 > 0:30:34In the current market, we would hope to achieve in the region of £250,000.
0:30:34 > 0:30:39In its current condition, this property would fetch in the region of £240,000.
0:30:39 > 0:30:45- That's on the low side of our expectations.- That's a bit low. - But we're not selling.
0:30:45 > 0:30:50That's a potential pre-tax profit of between £35,000 and £45,000,
0:30:50 > 0:30:53but as Alan said, this is a rental vehicle,
0:30:53 > 0:30:57so having already let the lodge to a group of students,
0:30:57 > 0:31:01what total monthly income are they getting for the six rooms?
0:31:01 > 0:31:04This year, we're going to have just under two-one,
0:31:04 > 0:31:09but we've made it a loss leader this year because we came to the market late
0:31:09 > 0:31:14and as I said, the students took it in good faith. They saw it as a back-to-brick restoration.
0:31:14 > 0:31:18So, in subsequent years, they may aim for a higher figure.
0:31:18 > 0:31:23But for now, they're happy with their £2,100 a month rental income.
0:31:23 > 0:31:28Alan and Jill work on 11-month short-term leases,
0:31:28 > 0:31:33so £2,100 per calendar month will bring in £23,100 a year
0:31:33 > 0:31:35or a yield of around 11%,
0:31:35 > 0:31:40so it certainly seems that reviving the lodge has paid dividends.
0:31:40 > 0:31:42What next?
0:31:42 > 0:31:44- Have a holiday.- Yeah.
0:31:44 > 0:31:47- Maintain and manage all the properties we do have.- Yeah.
0:31:47 > 0:31:52And possibly look at doing a project again. We've enjoyed it.
0:31:52 > 0:31:55The actual restoration has worked well.
0:31:59 > 0:32:04I'm in Barrow-in-Furness, Cumbria, often referred to as the Gateway to the Lake District.
0:32:04 > 0:32:11This industrial town thrived on its coastal location and the steel and shipbuilding industry.
0:32:11 > 0:32:16The property I'm here to see is pretty well located.
0:32:16 > 0:32:22Not far from the town centre, schools, a hospital and shops nearby,
0:32:22 > 0:32:24it's looking good, this nice estate.
0:32:24 > 0:32:30I'm here to see a bungalow. It went up for auction with a guide price of £100,000-plus. Let's take a look.
0:32:34 > 0:32:40So, useful little entrance porch here, keeps the draughts out, then into the main body of the bungalow.
0:32:40 > 0:32:45Fairly traditional layout - one large area in the middle off which all the rooms go.
0:32:45 > 0:32:52You've got a bedroom at the front, a fairly decent-sized lounge there with a reasonably modern fireplace,
0:32:52 > 0:32:56and in fact, the whole bungalow seems to be in reasonable nick.
0:32:56 > 0:33:01Toilet and bathroom, bit of a dated suite - you'd want to change that.
0:33:01 > 0:33:07Through to the kitchen, then through to the second bedroom, but what on earth is this?
0:33:07 > 0:33:12It's almost like it's an upside-down dormer and then below it, the window.
0:33:12 > 0:33:17Obviously, out there, there's another room, but that, clearly, was an extension.
0:33:17 > 0:33:22It's left you with this window between rooms which always doesn't work.
0:33:22 > 0:33:27So either take that wall out completely to make one huge room
0:33:27 > 0:33:30or maybe there's other things we can do with the layout.
0:33:30 > 0:33:34# Upside down you're turning me You're giving love instinctively
0:33:34 > 0:33:37# Around and round you're turning me... #
0:33:39 > 0:33:43Not only is this all back to front, upside down and a bit odd,
0:33:43 > 0:33:47the extension room doesn't even have an exit out into the back garden,
0:33:47 > 0:33:52so I think I'd knock down the dividing wall, stick in a couple of French or patio doors
0:33:52 > 0:33:58and hey, presto, you'd have one decent-sized room instead of two slightly odd ones.
0:33:58 > 0:34:05Well, through to the kitchen and your first impression might be to just rip it out and start again.
0:34:05 > 0:34:09That's certainly one option, but if you're renting this place out,
0:34:09 > 0:34:15maybe with a few bits of...I don't know, bits of titillation, maybe you could just live with this as it is.
0:34:15 > 0:34:19So what could you do, rather than just ripping the whole thing out?
0:34:19 > 0:34:25Just replacing the work surface with something more modern would give a lift to the whole thing.
0:34:25 > 0:34:27Maybe painting the tiles, similarly.
0:34:27 > 0:34:32Over here, a very dated and old-looking gas hob. Replace that with a halogen perhaps?
0:34:32 > 0:34:38Again it would give a lift to the whole place. You could rip out all of these units, take them all out.
0:34:38 > 0:34:45But why not just keep the carcasses and replace the doors with something a bit more modern?
0:34:45 > 0:34:49Changing the lighting from this, which isn't to everyone's taste,
0:34:49 > 0:34:52to halogen downlighters, that's quite a sexy thing to do.
0:34:52 > 0:34:54All options to consider.
0:34:54 > 0:34:56# We can think about it
0:34:56 > 0:34:58# Think about it
0:34:58 > 0:35:01# Think about it, baby
0:35:01 > 0:35:04# Come on, sit down here Think about it... #
0:35:04 > 0:35:08If there are things to consider about inside the property,
0:35:08 > 0:35:11there are also a few to think about outside.
0:35:11 > 0:35:16Well, at the rear of the property, a decent-sized garage, a small shed,
0:35:16 > 0:35:20an area largely laid to flagstones
0:35:20 > 0:35:24and it's clear now that is an extension, as you can see.
0:35:24 > 0:35:28The other thing you might want to consider is going up into the roof
0:35:28 > 0:35:32to create a proper dormer, as opposed to the thing which is there.
0:35:32 > 0:35:37Is it worth doing? It will come down to how much it will cost and how much value it will add
0:35:37 > 0:35:41and also what it will add to the quality of life of living here.
0:35:41 > 0:35:45It's possible. Is it worth doing? That's up to you if you bought it.
0:35:45 > 0:35:47# It's all up to you now
0:35:50 > 0:35:53# It's all up to you now... #
0:35:53 > 0:35:56There are a number of things you could do here
0:35:56 > 0:36:02from a loft conversion to losing the carport and garage and building a side extension,
0:36:02 > 0:36:05but it all boils down to what you want the bungalow for.
0:36:05 > 0:36:10If it's as an investment, it's weighing up the costs versus the returns.
0:36:10 > 0:36:13# It's all up to you now... #
0:36:17 > 0:36:21So what does a local estate agent think about what's on offer here
0:36:21 > 0:36:24and what kinds of returns it could generate?
0:36:24 > 0:36:27You could go into the loft to make a third bedroom.
0:36:27 > 0:36:33There is an extension already at the back which could be used as a dining room or a bedroom also.
0:36:33 > 0:36:39How much more value could extending add to this bungalow, guided at £100,000-plus?
0:36:39 > 0:36:43Once renovated, I'd see this propert achieving £135,000 to £140,000.
0:36:43 > 0:36:48Once extended, a three-bedroom property, this back room as a dining room,
0:36:48 > 0:36:51I'd expect it to achieve round about £175,000.
0:36:51 > 0:36:56With bill costs to do an extension, that's not a massive mark-up.
0:36:56 > 0:36:59What about as a rental?
0:36:59 > 0:37:03I can see it achieving about £550 to £600 per calendar month.
0:37:03 > 0:37:09With all the extensions and into a three-bedroom, I'd expect it to achieve £700 to £750 per month.
0:37:09 > 0:37:15Well, a bit of modernisation required and certainly the internal layout needs to be sorted,
0:37:15 > 0:37:18but it's a nice little bungalow in a good location,
0:37:18 > 0:37:23so who was steely enough to buy it when it went under the hammer?
0:37:24 > 0:37:27Lot number 13 is an extended, two-bedroom bungalow
0:37:27 > 0:37:30in the sought-after area of Barrow.
0:37:30 > 0:37:3495 I've got on the phone and we're away. At £95,000.
0:37:34 > 0:37:38I'm looking for 100. I'll take it in fives. Can I say...? 100 I've got
0:37:38 > 0:37:40Looking for 105 on the phone.
0:37:40 > 0:37:42105. 110.
0:37:42 > 0:37:44112.
0:37:44 > 0:37:46114? 114.
0:37:46 > 0:37:48May I say 116, sir?
0:37:48 > 0:37:50Yes, 116.
0:37:50 > 0:37:53May I say 118 behind...? 120 in front.
0:37:53 > 0:37:56120. At £120,000 I'm bid.
0:37:56 > 0:37:59122? 122 I have.
0:37:59 > 0:38:01124?
0:38:01 > 0:38:03124 I've got. 126.
0:38:03 > 0:38:07I'll take one off you, sir. 127. 128.
0:38:07 > 0:38:09129.
0:38:09 > 0:38:11At £129,000.
0:38:11 > 0:38:14130 behind? 130 I've got.
0:38:14 > 0:38:17131? 131 behind.
0:38:17 > 0:38:20At £131,000 for the first time.
0:38:20 > 0:38:24At 131,000 for the second time.
0:38:24 > 0:38:30At £131,000 then, selling away, all done, all out... Sold.
0:38:30 > 0:38:32Well done, sir.
0:38:32 > 0:38:37'That successful bid of £131,000 was made by Martin.
0:38:37 > 0:38:40'His partner Lorna couldn't make it to the auction.
0:38:40 > 0:38:47'Martin is retired now, having worked in IT, while Lorna is a client service manager at a gym.
0:38:47 > 0:38:53'I met them back at the bungalow to find out what they planned for their purchase.'
0:38:53 > 0:38:58- Lorna, Martin, lovely to meet you both.- And you. - Congratulations.- Thank you.
0:38:58 > 0:39:01Tell me why you wanted to buy the bungalow.
0:39:01 > 0:39:04An investment, really. As simple as that.
0:39:04 > 0:39:07And we had a legacy to spend, so...
0:39:07 > 0:39:10- Right. So decided to put it into property?- Yeah.
0:39:10 > 0:39:14Even in these times when people down the pub say, "Whoa, property..."
0:39:14 > 0:39:20Well, actually, I heard about the property in a pub.
0:39:20 > 0:39:22- Oh, did you? - LAUGHTER
0:39:22 > 0:39:27A friend mentioned that it was up for auction, so I thought I'd give it a go.
0:39:29 > 0:39:33'Getting local information on the grapevine is always useful.
0:39:33 > 0:39:37'Martin has previously renovated one other property,
0:39:37 > 0:39:40'so they're not complete beginners,
0:39:40 > 0:39:45'but even so, they've now got to turn this pub dream into a sound investment.'
0:39:45 > 0:39:49So tell me what you're going to do to transform it.
0:39:49 > 0:39:52Well, a new bathroom, new kitchen,
0:39:52 > 0:39:55take the wall down in the kitchen,
0:39:55 > 0:39:58make it a kitchen-diner.
0:39:58 > 0:40:03- Oh, right.- Block up that rather silly-looking window in the...
0:40:03 > 0:40:06That's about it, really, and re-decorate.
0:40:06 > 0:40:10- Possibly a loft conversion if we can?- Possibly, if we can afford it.
0:40:10 > 0:40:16- Who's going to do the work? - Martin will do a lot, unless it gets a bit complicated for him,
0:40:16 > 0:40:19then we'll just get contractors in.
0:40:19 > 0:40:24So what's your background, Martin? Is this something you've done before?
0:40:24 > 0:40:27I've done this before, but it's not my background at all.
0:40:27 > 0:40:32I was a finance IT director for a pharmaceutical company.
0:40:32 > 0:40:35- Right. - So it's a bit of a difference.
0:40:36 > 0:40:42But I retired a few years ago and this is just something to do, really
0:40:42 > 0:40:47So when he's not doing my cooking and ironing, he can be up here decorating.
0:40:47 > 0:40:50- That works quite well then? - Yeah, definitely.
0:40:50 > 0:40:54'Martin has given himself a £10,000 budget
0:40:54 > 0:40:57'and a relaxed timescale of six months to get the job done.'
0:40:57 > 0:41:02So is there anything that might sort of delay the process at all?
0:41:02 > 0:41:06- Football?- Yeah, probably. - Football?- Football.
0:41:06 > 0:41:12- Why?- I'm just mad about football. I go all over sort of watching teams play.
0:41:12 > 0:41:15- Any particular team you support? - Motherwell.
0:41:15 > 0:41:20- The odd Saturday here and there might be out of the equation? - Could be.
0:41:20 > 0:41:26And any football that's on the telly, any game, any team, Martin will watch.
0:41:26 > 0:41:28- That much of a fanatic about football?- Yeah.
0:41:28 > 0:41:34- One of the first things we can expect to see is a portable television in the corner?- Yeah.
0:41:34 > 0:41:40- Congratulations. Good luck with it. We look forward to seeing how you get on.- Thank you very much.
0:41:40 > 0:41:44So an interesting little project for Martin and Lorna.
0:41:44 > 0:41:49The big question is, will Martin get the job finished within six months?
0:41:49 > 0:41:54I guess it all comes down to whether it's an interesting football season or not.
0:41:54 > 0:41:57Find out how he gets on later in the show.
0:41:59 > 0:42:05I wonder if our intrepid buyers' plans have worked out or have there been problems?
0:42:05 > 0:42:10Well, time has gone by and it's the day of reckoning. Let's go back and find out.
0:42:10 > 0:42:15We're now heading back to the Essex town of Upminster
0:42:15 > 0:42:20where earlier in the programme, this three-bed semi went under the hammer.
0:42:20 > 0:42:23Keith bought it for 263,000.
0:42:23 > 0:42:27His son Justin was going to manage the refurbishment as his first property project.
0:42:27 > 0:42:33Keith owns a chain of 18 tanning salons and has a buy-to-let portfolio as well.
0:42:33 > 0:42:37But the plan was for Justin to do it up and then sell on.
0:42:37 > 0:42:41Keith hadn't seen the house before he bought it.
0:42:41 > 0:42:47He went on Justin's recommendation judging by what he had seen only from the outside.
0:42:47 > 0:42:54But luckily, it appeared to be in remarkably good order and needed very little work.
0:42:55 > 0:42:58- How long will it take you? - A maximum of eight weeks.
0:42:58 > 0:43:03- Can you stick to that? - I'd say, hopefully, we can have it done in a month.
0:43:03 > 0:43:10- So you're saying a month and you're saying double that?- Yeah.- It'll be interesting to see who's right.
0:43:14 > 0:43:17Justin and Keith have finished the work here.
0:43:17 > 0:43:21I think it's a shame they haven't gone for my off-street parking idea,
0:43:21 > 0:43:26but the hedge has been trimmed and you can now see the house much better.
0:43:26 > 0:43:29There have been some unexpected major changes.
0:43:29 > 0:43:34They decided to take the wall down between the two reception rooms.
0:43:37 > 0:43:40A new patio door has been installed.
0:43:40 > 0:43:44No need to go to the tanning salon - the sunshine floods in!
0:43:44 > 0:43:50I'm really impressed with the transformation that has taken place in the kitchen.
0:43:50 > 0:43:52Justin has kept the original units,
0:43:52 > 0:43:57but replacing the work-top and tiles have given this room a brand-new feel.
0:43:57 > 0:44:02And removing the door has integrated the utility room much better.
0:44:02 > 0:44:08But as Justin explains, it was really just a case of filling in the missing pieces.
0:44:08 > 0:44:13The first thing, when we came here, we had a big gap over there
0:44:13 > 0:44:16where they previously had the hob and cooker.
0:44:16 > 0:44:20So we've just patched that in - new hob, new cooker there.
0:44:20 > 0:44:24New sink, new tiles on the wall, lick of paint all round.
0:44:24 > 0:44:27There was a big, horrible door here,
0:44:27 > 0:44:33so we've opened it all up nicely into the new utility room and bathroom.
0:44:33 > 0:44:37We brought the floor up a level, so it wasn't such a big drop down.
0:44:37 > 0:44:43There was a big concrete step going down, which didn't look nice, so we got rid of that, tiled it through.
0:44:43 > 0:44:48It's a lot more modern and up-to-date with the downlighters,
0:44:48 > 0:44:51the new tiles... I think it looks really good.
0:44:51 > 0:44:57I'm desperate to know how long the work took. Justin predicted one month and dad Keith two months.
0:44:57 > 0:44:59So, come on, who won?
0:45:00 > 0:45:02Well, luckily, I was right.
0:45:02 > 0:45:05It would have probably taken a couple of weeks less,
0:45:05 > 0:45:11but we had other projects the builders were working on and a coupl of builders were away on holiday.
0:45:11 > 0:45:15Hang on, guys. This is a bit more than you'd initially planned.
0:45:15 > 0:45:19You never mentioned knocking down the wall between the living rooms.
0:45:19 > 0:45:25We weren't going to. The builders suggested it and we thought it was a good idea.
0:45:25 > 0:45:29It's made two small rooms into a nice, big family living area.
0:45:29 > 0:45:35And with those French doors at the back overlooking that garden, you know, it's ideal.
0:45:37 > 0:45:42Upstairs, the fitted wardrobes have been removed from the two main bedrooms.
0:45:42 > 0:45:46All three bedrooms have been decorated in the house style
0:45:46 > 0:45:49using beige, brown and magnolia.
0:45:51 > 0:45:56And what about that cupboard that I fancied as a walk-in wardrobe?
0:45:56 > 0:45:59They don't seem to have used it for anything.
0:45:59 > 0:46:04We were going to knock through, make the bathroom bigger and make maybe like a wetroom or a shower.
0:46:04 > 0:46:11We got rid of that idea and just put the shower in the bath and renewed everything in there, the tiles...
0:46:11 > 0:46:13And we think that looks nice.
0:46:13 > 0:46:16Justin's got an eye for refurbishment.
0:46:16 > 0:46:21He has concentrated on the two most important rooms in any house -
0:46:21 > 0:46:24the kitchen and bathroom. Keith must be pleased.
0:46:24 > 0:46:26Justin's done fantastically well.
0:46:26 > 0:46:32He's overlooked the whole project. He's been here regularly, made sure everything runs to schedule.
0:46:32 > 0:46:37So with no structural changes upstairs and no off-street parking,
0:46:37 > 0:46:39how much has the project cost?
0:46:39 > 0:46:46We originally set the budget at abou 15,000. By not doing the shower room and the wetroom upstairs
0:46:46 > 0:46:50and the minimum amount of work in th kitchen, it's kept the budget down.
0:46:50 > 0:46:55I think we've come in just under about 10,000, so pretty good.
0:46:56 > 0:46:59With the £263,000 they paid at auction,
0:46:59 > 0:47:05that takes Keith's total investment to 273,000.
0:47:05 > 0:47:09Time to see what two local estate agents think
0:47:09 > 0:47:11of Justin's first development project.
0:47:11 > 0:47:14First, the returning agent.
0:47:14 > 0:47:18First impression, having seen the property before the work was done,
0:47:18 > 0:47:21certainly very clean, tidy, modern inside.
0:47:21 > 0:47:27It's a shame no off-street parking was added, but what they've done to the property complements it nicely.
0:47:27 > 0:47:30What they've done to it is really, really nice.
0:47:30 > 0:47:32It's all been redone throughout,
0:47:32 > 0:47:36new carpets, refitted kitchen and the bathroom's really nice.
0:47:36 > 0:47:40So generally positive views from the estate agents,
0:47:40 > 0:47:44but will that be reflected in their valuations?
0:47:44 > 0:47:48Do they think the house is worth more than the 273,000 Keith has invested here?
0:47:48 > 0:47:54We expect the property to achieve somewhere in the region of £295,000 to £300,000.
0:47:54 > 0:47:58Resale value - to put on the market between £290,000 and £300,000.
0:47:58 > 0:48:02If those valuations were achieved, they would generate a gross profit
0:48:02 > 0:48:07of between 17,000 and 27,000 before taxes and expenses.
0:48:07 > 0:48:10Is that what Keith had expected?
0:48:10 > 0:48:15I think it's a little bit low. Obviously, we'd like to obtain a bit more than that.
0:48:15 > 0:48:19Keith already has a portfolio of buy-to-let properties,
0:48:19 > 0:48:24so if he wanted to let this house rather than sell, how much could it earn?
0:48:24 > 0:48:30The property would achieve somewhere in the region of £1,150 to £1,200 per calendar month.
0:48:30 > 0:48:36Rental-wise, I think it would achieve £1,150 per calendar month.
0:48:36 > 0:48:40So the property could generate a rental yield of over 5%.
0:48:40 > 0:48:44Does Keith think that might be the route to take?
0:48:44 > 0:48:48Yeah, put it on the market, leave it up for sale for, say, two months,
0:48:48 > 0:48:52and if we don't have any buyers, we'll look at the rental market.
0:48:52 > 0:48:54Will they be working together again?
0:48:54 > 0:48:56- Definitely.- Yeah.
0:49:01 > 0:49:07'Located in the Cumbrian town of Barrow-in-Furness was this two-bedroom, semi-detached bungalow.
0:49:07 > 0:49:13'With rooms off a central corridor, it comprised a dated kitchen and bathroom, a decent-sized lounge
0:49:13 > 0:49:16'and a reasonable back bedroom.
0:49:16 > 0:49:23'Then things turned strange with a second bedroom looking out into, well, the rear reception room.
0:49:23 > 0:49:26'But despite this rather odd layout,
0:49:26 > 0:49:31'local couple Martin and Lorna saw enough in it to splash the cash
0:49:31 > 0:49:34'and buy it for £131,000 at auction.'
0:49:34 > 0:49:37Tell me why you wanted to buy the bungalow.
0:49:37 > 0:49:39An investment, really.
0:49:39 > 0:49:42As simple as that.
0:49:42 > 0:49:44And we had a legacy to spend, so...
0:49:44 > 0:49:47- So decided to put it into property? - Yeah.
0:49:47 > 0:49:51Even in these times when people down the pub say, "Whoa, property..."?
0:49:51 > 0:49:57Well, actually, I heard about the property in a pub.
0:49:57 > 0:49:59- Oh, did you? - LAUGHTER
0:49:59 > 0:50:04A friend mentioned that it was up for auction and I thought I'd give it a go.
0:50:04 > 0:50:11Martin is a retired IT finance manager and Lorna works as a client services manager at a gym.
0:50:11 > 0:50:15It was going to be down to Martin to do the majority of the hard graft.
0:50:15 > 0:50:20And with ambitious plans to open up the kitchen and perhaps do a loft conversion,
0:50:20 > 0:50:22all on a budget of £25,000
0:50:22 > 0:50:24and in just six months,
0:50:24 > 0:50:28it was going to be quite a challenge.
0:50:28 > 0:50:32Now, nearly one year later, we're back and, from the outside,
0:50:32 > 0:50:35it's not looking very different at all.
0:50:35 > 0:50:39It's still got the carport and the garage.
0:50:39 > 0:50:45It's still grassed at the front and the windows and doors look the same.
0:50:45 > 0:50:48So what about inside?
0:50:48 > 0:50:53Let's hope at least that rather odd layout of the two rooms has changed.
0:50:54 > 0:50:57Wow, they sure have!
0:50:57 > 0:51:02The dividing wall has been knocked down and the back area made into a dining space.
0:51:02 > 0:51:07The front area is now a fabulous kitchen, as Lorna explains.
0:51:08 > 0:51:12This is the new kitchen-diner, a space we're very, very happy with.
0:51:12 > 0:51:16There used to be an external wall here with a strange window in
0:51:16 > 0:51:19that didn't work in the flow of the house at all,
0:51:19 > 0:51:25so we've knocked that through and made it into a lovely kitchen-diner, a nice family space.
0:51:25 > 0:51:28Martin had a builder in to do the exterior bits,
0:51:28 > 0:51:34but once the builder had gone, Martin did all the kitchen himself. He's done a really good job.
0:51:34 > 0:51:37This really does make a great kitchen space.
0:51:41 > 0:51:44But what about those stairs?
0:51:44 > 0:51:46Where do they lead to?
0:51:46 > 0:51:49Well, here we are in the loft.
0:51:49 > 0:51:53There was a bit of doubt whether we' actually do this loft conversion,
0:51:53 > 0:51:56but in the end, we decided to go for it
0:51:56 > 0:52:01because one of my friends, who's a builder, said he'd do it for a fixed price.
0:52:01 > 0:52:06But I had to do the labouring. In the end, this loft conversion cost £15,000.
0:52:06 > 0:52:11That was the budget, that's what my friend said it would cost and that's what it was
0:52:13 > 0:52:20Along with this bedroom in the loft, what was the old kitchen has been turned into a bedroom.
0:52:20 > 0:52:23And there's a bedroom at the far end of the corridor,
0:52:23 > 0:52:26making this now a three-bed property.
0:52:26 > 0:52:29And to go with the bedrooms,
0:52:29 > 0:52:33there's a completely modernised and revamped family bathroom
0:52:33 > 0:52:36and a large reception room.
0:52:36 > 0:52:40Clearly, there is still some work to be done
0:52:40 > 0:52:43before this is all finished and ready for the rental market.
0:52:43 > 0:52:47Even so, Martin has clearly been pretty busy.
0:52:47 > 0:52:53He's done absolutely fantastic. He's been here nine to five, at weekends, learnt a few tricks of the trade.
0:52:53 > 0:52:59- Yeah.- Made a few mistakes along the way, but he's learning as he goes. Yeah, I'm really proud of him.
0:52:59 > 0:53:03The decision to do the loft conversion was the key reason
0:53:03 > 0:53:07for this project taking longer than they had first hoped.
0:53:07 > 0:53:12Along with some decoration inside, they still had to tackle the dog-friendly area at the back
0:53:12 > 0:53:16where they planned to tidy up and add some decking.
0:53:16 > 0:53:22So with quite a few big decisions to make on the layout, were Martin and Lorna always in agreement?
0:53:22 > 0:53:24I think we work really well as a team.
0:53:24 > 0:53:30There's the odd barney here and there and discussions because of our different views.
0:53:30 > 0:53:34I think we do work well as a team and we can see different angles.
0:53:34 > 0:53:38- We probably get to the right answer in the end.- Eventually.
0:53:38 > 0:53:41I hope the neighbours haven't heard too many barneys.
0:53:41 > 0:53:46Well, they certainly now have a place to shout about.
0:53:49 > 0:53:53But how much has it cost to transform this tired, dated bungalow
0:53:53 > 0:53:56into a modern, three-bedroom property?
0:53:58 > 0:54:04The original budget was £10,000 for converting the house downstairs and refurbishing it.
0:54:04 > 0:54:11There was a £15,000 budget for doing the loft conversion, so that made 25,000.
0:54:11 > 0:54:13We're on 23,000 at the moment,
0:54:13 > 0:54:16so I'm fairly happy with that.
0:54:16 > 0:54:22There's a few things like the back door's still to do, so we'll be in and around the budget.
0:54:22 > 0:54:25With them sticking to their £25,000 budget,
0:54:25 > 0:54:28plus their £131,000 purchase price,
0:54:28 > 0:54:34that's a total outlay of £156,000 before costs and fees.
0:54:34 > 0:54:39But this renovation will have taken nearly a year before it's finished,
0:54:39 > 0:54:43so has all the time and effort been worth it?
0:54:43 > 0:54:45The progress has gone well.
0:54:45 > 0:54:49Very nice. New kitchen, new bathroom central heating, double glazing.
0:54:49 > 0:54:52The market is very strong for bungalows
0:54:52 > 0:54:56that are completely finished and they bring a premium in price
0:54:56 > 0:54:58as they attract the retired client.
0:54:58 > 0:55:01The fact that they've put a loft conversion in
0:55:01 > 0:55:06and made it into a family, three-bedroom house, as opposed to a ground floor bungalow,
0:55:06 > 0:55:09to sell it, it's giving a bit more variety of buyers.
0:55:09 > 0:55:15They've spent £156,000 to create their three-bedroom property,
0:55:15 > 0:55:18so will this prove to be a good investment?
0:55:18 > 0:55:23Since they have added the third bedroom, I'd expect offers in the region of £195,000.
0:55:23 > 0:55:27We would now expect to ask a price of £190,000.
0:55:27 > 0:55:30That's pretty good.
0:55:30 > 0:55:33We'd be very pleased with that.
0:55:33 > 0:55:38So a potential pre-tax profit of between £34,000 and £39,000.
0:55:38 > 0:55:44But the estate agents also said the loft conversion had only added 15,000 in value
0:55:44 > 0:55:47which is the same as it cost to build.
0:55:47 > 0:55:53However, if it didn't increase the potential resale profit, it should increase its rental prospects.
0:55:53 > 0:55:59As a three-bedroom family property, I would expect on the rental market £750 to £800 per calendar month.
0:55:59 > 0:56:04As a three-bedroomed house, if the property was on the rental market,
0:56:04 > 0:56:07we would expect to achieve £750 per calendar month.
0:56:07 > 0:56:10- Quite happy with that.- Very pleased.
0:56:10 > 0:56:15I would say it's probably around the region you would expect to get from this area.
0:56:15 > 0:56:21Even the lower £750 per calendar month would generate a yield above 5% which isn't bad,
0:56:21 > 0:56:25so this is looking like a decent long-term investment.
0:56:25 > 0:56:28Has it whetted their appetite for more?
0:56:29 > 0:56:35- No plans at the moment for doing another one.- And it would be nice to take a bit of a break as well,
0:56:35 > 0:56:39get my tea on the table for five o'clock coming home!
0:56:40 > 0:56:45We hope you've enjoyed watching the homes that went under the hammer today.
0:56:45 > 0:56:51- We'll have more thrills and spills from the auction rooms for you next time.- Goodbye.- Goodbye.
0:57:12 > 0:57:15Subtitles by Red Bee Media Ltd