0:00:02 > 0:00:06- There are property auctions held all over the UK.- A thriving business
0:00:06 > 0:00:12- with billions of pounds' worth of properties sold every year. - So if you want to find out more
0:00:12 > 0:00:17about buying and selling under the hammer, you've come to the right place.
0:00:40 > 0:00:46We're always saying you should do your research before you buy at auction, but what does that mean?
0:00:46 > 0:00:52You should go and see the property if you can and find out as much about it as possible.
0:00:52 > 0:00:57That's a very good start. Let's see what tempted the buyers today.
0:00:58 > 0:01:02In Cumbria, I call for reinforcements.
0:01:02 > 0:01:04Hello. Equipment hire services?
0:01:04 > 0:01:07Can you send a very big skip?
0:01:08 > 0:01:12In London, I'm cooking up ideas to make this flat liveable.
0:01:12 > 0:01:17"I'll fry some eggs." Far too tight. It's not working for me at all.
0:01:17 > 0:01:21And this-baked bungalow in Derby needs creativity.
0:01:21 > 0:01:28Somebody's done some clearing up and you've got a very interesting canvas on which to paint your masterpiece.
0:01:29 > 0:01:34All these properties have been sold at auctions and we'll find out who bought them
0:01:34 > 0:01:38and what they paid for them when they went under the hammer.
0:01:42 > 0:01:46I'm in Cumbria and just 12 miles from the border with Scotland.
0:01:46 > 0:01:51The place I've come to see is in a hamlet on the outskirts of Carlisle,
0:01:51 > 0:01:55although it does seem to have some amenities of its own.
0:01:58 > 0:02:01Well, you'd be sorted for a pint.
0:02:01 > 0:02:06I'm in the semi-rural hamlet of Coathill on the east side of the town.
0:02:06 > 0:02:12You've easy access to Carlisle and the motorways and all this beautiful countryside.
0:02:12 > 0:02:14What more could you possibly want?
0:02:14 > 0:02:20There is a slight drawback in some people's eyes - no school or shop.
0:02:20 > 0:02:23But these can be found in neighbouring villages.
0:02:24 > 0:02:28So is the property I'm here to see picture-postcard perfect?
0:02:28 > 0:02:33Well, you can't knock the location, right on the edge of the village.
0:02:33 > 0:02:39Beautiful views all around. The house may not be to everyone's taste. Turn of the century.
0:02:39 > 0:02:44Looks a substantial size, though. Three bedrooms, semi-detached. A guide price of 95,000 quid.
0:02:44 > 0:02:47Let's take a look.
0:02:47 > 0:02:52'A quick look at the outside tells me there's a bit of re-rendering required
0:02:52 > 0:02:56'and the roof might need attention, too.'
0:02:56 > 0:02:58So what have we got?
0:02:58 > 0:03:02A double-glazed door. That'll keep the wind off the hills out.
0:03:02 > 0:03:07Stairs up to your bedrooms there and then through into your living room.
0:03:07 > 0:03:13Straight away, I know what's called for. Hello, equipment hire services?
0:03:13 > 0:03:17Can you send a very big skip? Thank you.
0:03:17 > 0:03:21I think it's one of those rip it out and start again jobs.
0:03:21 > 0:03:24Intrinsically, not a bad space.
0:03:24 > 0:03:29An open fire would be much nicer. Ceilings want to come down.
0:03:29 > 0:03:35But in terms of layout, a nice big room. Then through into your kitchen.
0:03:35 > 0:03:38Everything here wants dumped in that skip.
0:03:38 > 0:03:44Downstairs loo, maybe not ideal. Maybe think about converting that and sticking it upstairs.
0:03:44 > 0:03:48Other than that, yeah... it's a skip it job!
0:03:48 > 0:03:52# What does it get? It gets thrown in the bin... #
0:03:52 > 0:03:58In a property like this, you need to see past the faded decoration and worn-out fittings.
0:03:58 > 0:04:03There is potential here. You just have to look for it.
0:04:05 > 0:04:08So upstairs... What delights are in store?
0:04:08 > 0:04:13Well, a reasonable-sized bedroom to the left there.
0:04:13 > 0:04:19Smaller odd room to the right. And it doesn't get much better to the rear. You've got this room.
0:04:19 > 0:04:24Somebody has tried to make it a little bit more palatable by sticking in this dormer,
0:04:24 > 0:04:29but this isn't going to work. The ceiling height is unacceptable
0:04:29 > 0:04:32and these polystyrene tiles have got to go.
0:04:32 > 0:04:38Sort of Heath Robinson crazy stuff going on with the heating system there.
0:04:38 > 0:04:43And then a cupboard? Oh, no, it's not a cupboard. It's a toilet.
0:04:43 > 0:04:48Not really sure that works, but a nice view out the window.
0:04:48 > 0:04:55The low ceiling and miniature loo might do for a doll's house, but here they'd have to go.
0:04:55 > 0:05:01# With a hammer, nail and a hunk of wood I'll build a doll house... #
0:05:01 > 0:05:05Thankfully, the dinky dimensions end when you go outside.
0:05:05 > 0:05:10So the house itself a good-sized space,
0:05:10 > 0:05:14but walk outside and you find this incredible garden -
0:05:14 > 0:05:19but pretty much like the house itself, it needs a bit of work,
0:05:19 > 0:05:25but you can't complain about the setting. You've got open fields, sheep, hills in the distance.
0:05:25 > 0:05:31And just take a look at that. What a beautiful little church.
0:05:32 > 0:05:38A fabulous outlook like this certainly improves my view of this place,
0:05:38 > 0:05:46but the house needs some reconfiguration or, even better given the space, an extension.
0:05:46 > 0:05:50We asked the auctioneer who sold it for his opinion on this property,
0:05:50 > 0:05:52which had a £95,000 guide price.
0:05:52 > 0:05:58It's got great potential. It needs a full programme of modernisation.
0:05:58 > 0:06:02New kitchen, new bathroom and hopefully get the bathroom upstairs,
0:06:02 > 0:06:05whilst not losing any bedrooms.
0:06:05 > 0:06:12Possibly a small extension. There's plenty of room to extend either out the side or to the rear.
0:06:12 > 0:06:17Let's get some values, then. Firstly, how much rent could the new owner charge?
0:06:17 > 0:06:23Renovated, with an upstairs bathroom and possibly downstairs toilet and shower room, utility room,
0:06:23 > 0:06:31I think the property would rent in the current market for about £500-£525 per calendar month.
0:06:31 > 0:06:35What if the buyer decided to renovate and sell on?
0:06:35 > 0:06:40Sales-wise, if the property was done up to a good condition,
0:06:40 > 0:06:44and shifting the bathroom upstairs whilst retaining three bedrooms,
0:06:44 > 0:06:50a utility room and shower room downstairs, I think the property would achieve, in this market,
0:06:50 > 0:06:53in the region of £165,000.
0:06:53 > 0:06:58Well, more than a weekend's work to sort this place out,
0:06:58 > 0:07:04but for a rural lifestyle with easy access to good communication links like the motorway and Carlisle,
0:07:04 > 0:07:09I don't think you can go too wrong. Let's see who agreed.
0:07:09 > 0:07:14Is there 80 in the room for this? £80,00 for Lot 43?
0:07:14 > 0:07:1880 shall we say? Tempted? Yes, you are.
0:07:18 > 0:07:22At £80,000 I'm bid. 82 I've got.
0:07:22 > 0:07:2584 may I say? 86? 6 I have.
0:07:25 > 0:07:2888. And 90?
0:07:29 > 0:07:32No. Back with you at 88.
0:07:32 > 0:07:3590 anywhere? 90 I've got, stood to the rear.
0:07:35 > 0:07:3892. 93.
0:07:38 > 0:07:4094. 95?
0:07:43 > 0:07:4695 I've got. With you at the rear.
0:07:46 > 0:07:49It's against you, sir. You're out.
0:07:49 > 0:07:55Selling this at 95. You must be here for a reason. It's not to look at me.
0:07:55 > 0:07:58Now is the time to bid. At £95,000 I'm selling this.
0:07:58 > 0:08:01First time. 96.
0:08:01 > 0:08:04New position. 97, sir? Nearly got it.
0:08:04 > 0:08:06No.
0:08:06 > 0:08:1296. With you, sir. New position. Sat to the rear.
0:08:12 > 0:08:14Tempt you with a half? No?
0:08:14 > 0:08:18£96,000, then. For the first time.
0:08:18 > 0:08:25At £96,000 for the second time. Could be the last bid of the day. At £96,000. Are we all done?
0:08:25 > 0:08:31All out? Third and final time. Sold to the rear, sir. Can I have your paddle number?
0:08:33 > 0:08:38Sweeping in with that last-minute bid of £96,000 was Jim,
0:08:38 > 0:08:43who not only has a property portfolio, but also owns that local pub.
0:08:43 > 0:08:49His son, Stephen, a joiner by trade, will be taking charge of this project.
0:08:49 > 0:08:52# Father and son
0:08:52 > 0:08:55# Down the road they come... #
0:08:57 > 0:09:03I met the father and son team to find out what their plans were for this dilapidated three-bed semi.
0:09:04 > 0:09:08- Jim, Stephen, great to meet you. - Thank you.- Congratulations.
0:09:08 > 0:09:12- Why did you want this place? - It needs to be renovated.
0:09:12 > 0:09:17We've got a few of these properties. We thought we might get a bargain.
0:09:17 > 0:09:22- So what's the idea for it? Do it up to sell it on?- Buy to let.
0:09:22 > 0:09:26- It's a substantial property.- Yeah. - But not without its problems.
0:09:26 > 0:09:31Major problems. The roof has to come off, raised.
0:09:31 > 0:09:36All the plaster back down to bare brick, ceilings out,
0:09:36 > 0:09:40floors out. And then start from the beginning.
0:09:40 > 0:09:45Electrical, plumbing, bathroom, kitchen. The full works.
0:09:45 > 0:09:50- That sounds like it'll be expensive. - It's going to cost us roughly 30-40 to do it up.
0:09:50 > 0:09:56- But it should be a hell of a property afterwards.- Yeah, you bet.
0:09:56 > 0:09:59And what's your involvement, Stephen?
0:09:59 > 0:10:03Basically, from start to finish. Raising the roof,
0:10:03 > 0:10:06- floors, everything. - And you'll be doing it?- Yeah.
0:10:06 > 0:10:12'But for any work Stephen isn't able to do, he'll be bringing in local tradesmen to help.
0:10:12 > 0:10:17'As they both live and work nearby, they aren't short of contacts, which is lucky,
0:10:17 > 0:10:22'because this property is not short of jobs for them.'
0:10:22 > 0:10:28- Are there other properties that wouldn't have been so much work? - A lot. Lots of them.
0:10:28 > 0:10:32But there's no way you would find anywhere with a view like this.
0:10:32 > 0:10:36The potential for it is just fantastic.
0:10:36 > 0:10:41You might be falling into a trap. It's buy to let. You're not supposed to be so passionate.
0:10:41 > 0:10:47We'll really enjoy this property, I can assure you. And it'll be a good return, I'm sure.
0:10:47 > 0:10:51- What is the timescale for it? - Between 6 and 9 months.- Right.
0:10:51 > 0:10:54It'll take that, without doubt.
0:10:54 > 0:11:00In that time, they also plan to steal a bit of the garden for an extension.
0:11:01 > 0:11:08The extension comes out, the kitchen looks over the fields. There's a utility and downstairs toilet,
0:11:08 > 0:11:14then into the kitchen/diner. Then you've got your living room and a bathroom upstairs.
0:11:14 > 0:11:21- And lose a bedroom? - No, still keep three bedrooms. I've kind of designed it out.
0:11:21 > 0:11:27There will be one rather small bedroom, but it's a selling point for the future having that upstairs.
0:11:27 > 0:11:32Fantastic. It sounds extraordinary. 6-9 months, we'll be back.
0:11:32 > 0:11:37- Yep.- I look forward to seeing how you progress.- You'll see a big difference.- I'm sure we will.
0:11:37 > 0:11:39Thank you.
0:11:39 > 0:11:45Well, father and son team Jim and Stephen certainly seem aware of the challenges ahead,
0:11:45 > 0:11:51but I am a little bit concerned this is a buy to let property and that's a lot of money to spend.
0:11:51 > 0:11:55Find out how they get on restoring this rural house later in the show.
0:12:03 > 0:12:07This is beautiful Blackheath in south-east London.
0:12:07 > 0:12:11With bunting, boutiques and little independent eateries,
0:12:11 > 0:12:15it's a gorgeous inner-city village with a price tag to match.
0:12:16 > 0:12:23Just a mile south of all this loveliness is Leigh - less popular and not so pretty,
0:12:23 > 0:12:25but much, much cheaper.
0:12:25 > 0:12:31With its own fast rail link into the city, it's still convenient
0:12:31 > 0:12:34and with gentrification happening, it's worth a look.
0:12:34 > 0:12:38The lot I'm here to see is on this busy road,
0:12:38 > 0:12:44but you're only a 10-minute walk from Leigh train station and a 5-minute drive to Blackheath
0:12:44 > 0:12:47without its crazy prices.
0:12:47 > 0:12:51The property I'm here to see is a flat in this grand Victorian pile
0:12:51 > 0:12:55and it had a guide price of £110,000.
0:13:00 > 0:13:07Nowadays, it's hard to believe that in London houses like this were originally built for one family
0:13:07 > 0:13:13and that the now practical off-street parking would have been a grand driveway.
0:13:13 > 0:13:19Inside, the shared entrance hall is a tad tatty, but still retains some of its former grandeur,
0:13:19 > 0:13:25with cornicing, lovely high ceilings and some stained glass on the half-landing windows.
0:13:25 > 0:13:32I'm wondering if the second-floor two-bedroom flat I'm here to see will have any grandeur, too.
0:13:32 > 0:13:35So straight into the flat. What have we got, then?
0:13:35 > 0:13:41Well, bathroom to the left. I do like natural light in a bathroom
0:13:41 > 0:13:46and there's a lovely big window. Nothing nicer for doing your makeup.
0:13:46 > 0:13:50Bedroom to the right. I would call that a very small double.
0:13:50 > 0:13:55What have we got through here? I thought it was an airing cupboard.
0:13:55 > 0:14:02It would be a good idea to knock those two rooms through and have a much larger space.
0:14:02 > 0:14:05And in here the kitchen.
0:14:05 > 0:14:09All the units are against the back wall. Not ideal,
0:14:09 > 0:14:14especially if you want to do some cooking. Far too tight.
0:14:14 > 0:14:18It's not working for me at all. Bedroom through here.
0:14:18 > 0:14:23Nice space to the back of the property. So where is the lounge?
0:14:23 > 0:14:27Does that mean this is the kitchen/lounge area?
0:14:27 > 0:14:34As you can see, it's just not a big enough space. I don't usually say this,
0:14:34 > 0:14:39but in this instance - this is a one-bedroom flat.
0:14:39 > 0:14:44There are a few ways to reconfigure. What I would like to do is to either
0:14:44 > 0:14:50knock through this way along here and have these two bedrooms
0:14:50 > 0:14:54as a kitchen/dining area, living room.
0:14:54 > 0:15:00And this would be the bedroom because it's nice and big. But think about the road noise.
0:15:00 > 0:15:06You might hear lots of traffic in the evening. Or you could knock through this way here
0:15:06 > 0:15:12and have the kitchen/dining/living room this way, but that means you've got a rather small bedroom.
0:15:12 > 0:15:18I think I'd go for option number one. But if there's anything I'd take from this,
0:15:18 > 0:15:21it's that it's a one-bedroom flat. NOT two.
0:15:21 > 0:15:28The back of the property faces out over peaceful gardens and a playing field,
0:15:28 > 0:15:33so it's a shame to put the bedroom at the front, but it's the easiest way to reconfigure the space,
0:15:33 > 0:15:40unless you rip out all the walls and start again. That would eat into your budget
0:15:40 > 0:15:44when turning this from a two to a one-bed should be the priority.
0:15:44 > 0:15:50# It's the night When two become one... #
0:15:50 > 0:15:55This small flat hasn't quite lived up to the scale and grandeur of the outside,
0:15:55 > 0:16:00but I still like the feel of it. It's young professional territory.
0:16:00 > 0:16:06Out of the window you can even see Canary Wharf. However, there are some kinks in the paperwork,
0:16:06 > 0:16:09namely regarding the 91-year lease.
0:16:09 > 0:16:15The lease was extended 8 years ago. You won't have to do that for a while. Sorted!
0:16:15 > 0:16:22Not so. In fact, I've been told the freeholder is absent, which is a very bad thing for a leasehold flat.
0:16:22 > 0:16:28If there's no freeholder, who do you pay your service charge to? Who maintains the fabric?
0:16:28 > 0:16:35Who organises the insurance? And what happens when you need to extend the lease again, as you will?
0:16:35 > 0:16:37Problem!
0:16:37 > 0:16:42Problem indeed. And something which may make it trickier to get a mortgage on this.
0:16:42 > 0:16:47But there is always something with an auction property to give you the heebie jeebies.
0:16:47 > 0:16:52You just have to decide if you can handle the hassle of sorting it.
0:16:52 > 0:16:53# Problem! #
0:16:53 > 0:16:59The guide price for this pad was £110,000. We invited along
0:16:59 > 0:17:03a local estate agent to tell us more about up-and-coming Leigh.
0:17:05 > 0:17:07The area is young, vibrant, lively.
0:17:07 > 0:17:09Ideal for a first-time buyer.
0:17:09 > 0:17:14A lot of corporate professionals in the area from Central London.
0:17:14 > 0:17:19You have a lot of pubs, bars, clubs, restaurants. A nice area, generally.
0:17:19 > 0:17:25As for the property itself, the estate agent agrees it would only work as a one-bed,
0:17:25 > 0:17:27so let's talk values.
0:17:27 > 0:17:34The property in its current condition I would estimate at £130,000-£135,000.
0:17:34 > 0:17:38However, when the renovations are carried out,
0:17:38 > 0:17:43I'd say that I'd be able to obtain £160,000-£170,000 on the property.
0:17:43 > 0:17:45And rental?
0:17:45 > 0:17:50Once fully renovated, I'd say the property would achieve £850 per calendar month.
0:17:50 > 0:17:56A cute little flat in a decent area, but in fact it's a one-bed masquerading as a two-bed
0:17:56 > 0:18:00with freeholder issues that could cause you many a headache to solve.
0:18:00 > 0:18:03Let's see who went for this at the auction.
0:18:03 > 0:18:08Lot 26 is a two-bed flat. Requires a little bit of updating.
0:18:08 > 0:18:12100 anywhere? 100,000.
0:18:12 > 0:18:15105. 110. 115.
0:18:15 > 0:18:18120. 125?
0:18:19 > 0:18:21One more go? Have a think.
0:18:21 > 0:18:23125 elsewhere.
0:18:24 > 0:18:30Seems low, this one. 125. New spot. 126.
0:18:30 > 0:18:31127.
0:18:31 > 0:18:35128. 129?
0:18:35 > 0:18:37128 with you.
0:18:37 > 0:18:39129?
0:18:39 > 0:18:45If not, 128. Going. You're going to lose it. 128 first time.
0:18:45 > 0:18:49Second time. Third and last time. All done?
0:18:50 > 0:18:53Sold. 128. Well done.
0:18:53 > 0:18:59Slightly hidden from view, that successful £128,000 bid was made by Austin,
0:18:59 > 0:19:05who was purchasing the property with his colleague Imran. They're not your standard swish developers.
0:19:05 > 0:19:10These guys have a rather clever game they're playing.
0:19:10 > 0:19:13# I can't keep wasting my time
0:19:13 > 0:19:16# On your games... #
0:19:16 > 0:19:20- Austin, congratulations. Imran.- Lovely to meet you.
0:19:20 > 0:19:25- I bet you are absolutely thrilled. - Yeah, it's a nice little property.
0:19:25 > 0:19:28Tell me why you've bought this.
0:19:28 > 0:19:33We're part of a property company. We work on joint ventures with clients.
0:19:33 > 0:19:37So we buy them at auction to flip, turn around and split the profit.
0:19:37 > 0:19:43- So you've not bought this for yourselves.- No, we've bought this with two or three other clients.
0:19:43 > 0:19:49We've pooled their money and we find projects for them and we project manage it.
0:19:49 > 0:19:54So they see the project later on once we've bought it.
0:19:54 > 0:20:01- So you take all the hard work and stress out of buying property!- Yeah. - Fabulous.- Or take the stress on!
0:20:01 > 0:20:06Are there still people out there that need that hand-holding process to that extent?
0:20:06 > 0:20:11Yeah. A lot of our clients are successful business people working long hours.
0:20:11 > 0:20:17They want to get another investment and have yield coming in, but they don't have time to go to auctions,
0:20:17 > 0:20:23do the research. We take all that from them, all the stress, and they get a nice profit at the end.
0:20:23 > 0:20:30- You guys seem to know what you're talking about.- Hopefully! - What is your background?
0:20:30 > 0:20:37I'm an ex-agent. I ran an agency for six years, then set up on my own. And I work for these clients, too.
0:20:37 > 0:20:41- What's your background?- I've been in property for 2½-3 years.
0:20:41 > 0:20:47We've got some great people who have been doing it for 15 years. Austin was originally a client.
0:20:47 > 0:20:50We've just built that rapport.
0:20:50 > 0:20:56'By joining forces, funds and experience, I think Austin and Imran have come up with
0:20:56 > 0:21:03'a very interesting business model. It wouldn't be for everyone, as you hand over a chunk of your profits,
0:21:03 > 0:21:09'but it seems to be working well for these two. So what have they got in store to transform this place?'
0:21:11 > 0:21:17The aim is really to turn it back into a one-bedroom, which I think it was originally.
0:21:17 > 0:21:20So we'll turn it back.
0:21:20 > 0:21:25So we're knocking this through here into a nice through lounge and kitchen there,
0:21:25 > 0:21:29- then create the bedroom here with loads of light.- And budget?
0:21:29 > 0:21:35- We've budgeted for £20,000-£25,000. - It's quite a fair amount. You don't have to install central heating.
0:21:35 > 0:21:41- It really is kitchen, bathroom... - That's it.- Take down the stud partition wall, flooring.
0:21:41 > 0:21:45We take the worst case scenario and work back from there.
0:21:45 > 0:21:50Hopefully, we'll spend less than 20, but we like to do it up to a good standard.
0:21:50 > 0:21:57- We might get better kitchen units. - We'll upgrade certain things, maybe a nice work surface in,
0:21:57 > 0:22:03nicer floors. So that when people do walk in, it's not got a typical developer's stamp on it.
0:22:03 > 0:22:07They feel some love and care. We've got some lovely features,
0:22:07 > 0:22:11so it's making the most of those, adding a few more character things.
0:22:11 > 0:22:15That will push it over, say, another flat that's a little bit bigger.
0:22:15 > 0:22:20The key is getting someone who has seen something else and come here.
0:22:20 > 0:22:26I'm liking the sounds of their plans to turn this flat from flawed to fabulous.
0:22:26 > 0:22:32With their builders set and good to go, Imran and Austin think they could complete this in 8 weeks.
0:22:32 > 0:22:39They're not even fazed by some of the other problems that came with this particular pad.
0:22:39 > 0:22:43Imran, buying this at auction doesn't come without its problems.
0:22:43 > 0:22:46What have you stumbled across here?
0:22:46 > 0:22:51There's a few issues. There's an absent freeholder.
0:22:51 > 0:22:57Luckily, we're negotiating with the other leaseholders to hopefully take control of the freehold,
0:22:57 > 0:23:03so we can hopefully give someone a share of the freehold, so they have greater control of communals,
0:23:03 > 0:23:08the building. It gives them a sense of ownership. We're working now on that for the next few months.
0:23:08 > 0:23:11A challenge, but we'll get round it.
0:23:11 > 0:23:16- Well done again. I'm expecting great things here. Congratulations. - Thanks.- Thank you.
0:23:16 > 0:23:21Austin and Imran have really hit on a great business model here
0:23:21 > 0:23:25and I am sure they will make that tired flat shine.
0:23:25 > 0:23:29You can find out how it looks later in the show.
0:23:29 > 0:23:35Coming up: I visit a bungalow in Derby with some cons, but a big pro.
0:23:35 > 0:23:38One thing you certainly have got is space!
0:23:39 > 0:23:45In south-east London, has Austin and Imran's project been tough enough?
0:23:45 > 0:23:49- I'd like a challenge for the next one!- Don't say that!
0:23:50 > 0:23:56But first, in Cumbria, just how good a job did Jim and Stephen do here?
0:23:56 > 0:23:59I've decided to move into it.
0:24:02 > 0:24:05We've returned to Coathill, near Carlisle in Cumbria.
0:24:05 > 0:24:12The property purchased at auction here for £96,000 was this, a three-bed semi.
0:24:12 > 0:24:18It was bought by Jim and his son Stephen, a joiner, who was going to take on most of the work.
0:24:18 > 0:24:23And this house wasn't short on things to do.
0:24:23 > 0:24:28- It's a substantial property.- Yeah. - But not without its problems.
0:24:28 > 0:24:33Major problems. The roof has to come off, raised,
0:24:33 > 0:24:36all the plaster back down to bare brick.
0:24:36 > 0:24:40Floors out, and then start from the beginning.
0:24:40 > 0:24:45Electrical, plumbing, bathroom, kitchen. The full works.
0:24:45 > 0:24:52That was just over 13 months ago. So have they managed to give this the thorough overhaul it needed?
0:24:52 > 0:24:55We've come back to find out.
0:25:18 > 0:25:22Well, the boys promised the full works and they've delivered,
0:25:22 > 0:25:28particularly by adding a rear extension for a rather fabulous new kitchen.
0:25:30 > 0:25:37The kitchen was the biggest part of the project. We've taken out that external wall there,
0:25:37 > 0:25:40put on a lean-to extension.
0:25:40 > 0:25:46We were quite lucky with the extension. We didn't need planning permission for this size.
0:25:46 > 0:25:52We put in a high-spec kitchen and a utility room for selling points for the future.
0:25:52 > 0:25:58Although they didn't need planning permission, it's always the best course to take council advice
0:25:58 > 0:26:01on what is and isn't allowed.
0:26:01 > 0:26:06Selling isn't the only plan Stephen has for further down the line.
0:26:06 > 0:26:12Once external work has been done, he's considering adding a double garage with a bedroom above it.
0:26:16 > 0:26:23For now, from the roof right through to the ground floor, every inch of this place has been renovated
0:26:23 > 0:26:28and is as good as new. In fact, it looks so impressive...
0:26:28 > 0:26:34I've decided to move into it rather than see somebody else rent it out.
0:26:34 > 0:26:36It cuts back on the rental value!
0:26:36 > 0:26:43Initially it was for rental, but at the end of the day the quality and standards are there,
0:26:43 > 0:26:50so when Stephen said, "Dad, I really want to move in. I'd love to stay in the village," fantastic.
0:26:50 > 0:26:56And I don't blame Stephen. Although experts were called in for some work,
0:26:56 > 0:27:02Stephen did the bulk of it. He's put a lot of time, effort and skill into making this property
0:27:02 > 0:27:08something special. He had to fit doing it into evenings and weekends around his other jobs,
0:27:08 > 0:27:14so the original timescale of 6-9 months has stretched and there's still the garden,
0:27:14 > 0:27:18but if something's worth doing, it's worth doing right.
0:27:20 > 0:27:24Stephen's always been meticulous in the jobs that he's doing.
0:27:24 > 0:27:28If the job's not done right, it's not getting done at all.
0:27:28 > 0:27:36He's just so...hands-on. He's done a fantastic job here. Really, really proud of him.
0:27:36 > 0:27:38As well he should be.
0:27:38 > 0:27:42In addition to all the work that's been carried out,
0:27:42 > 0:27:47there's a brand-new and I thought necessary addition up here.
0:27:47 > 0:27:54There wasn't a bathroom upstairs at all in the house, so we've rejigged the walls upstairs
0:27:54 > 0:27:58to form three bedrooms, a bathroom and an en suite in the master.
0:27:58 > 0:28:03Here in the main bathroom, we had flexibility from the start.
0:28:03 > 0:28:07We re-aligned the walls to make the standard bath fit in lengthways
0:28:07 > 0:28:13and also managed to squeeze in quite a large shower with the toilet and sink as well.
0:28:13 > 0:28:15I'm delighted.
0:28:15 > 0:28:22The upstairs is certainly a far cry from the chaos, cracks and crazy ceilings that were here before.
0:28:23 > 0:28:28The original budget for the project was £30,000-£40,000.
0:28:28 > 0:28:33Once everything's finished, they reckon they'll be closer to the 40, so within budget.
0:28:33 > 0:28:38That's not the only thing Stephen's breathing a sigh of relief over.
0:28:38 > 0:28:42Finishing and moving in the house and moving out of my parents' house!
0:28:43 > 0:28:46- Aye.- Having my own space.
0:28:46 > 0:28:50Let's hope they're also left laughing when it comes to money.
0:28:50 > 0:28:54With their £96,000 purchase price added to the £40,000 for the work,
0:28:54 > 0:29:01their total outlay here is £136,000. We invited two local property experts
0:29:01 > 0:29:05to cast their eyes over this much-improved pad.
0:29:09 > 0:29:13They've done a very good job to a very high specification.
0:29:13 > 0:29:15The extension is really good.
0:29:15 > 0:29:20It gives them a sizeable kitchen and great views over the back over open fields.
0:29:20 > 0:29:22It's very nice.
0:29:22 > 0:29:27My overall impression on the property is absolutely lovely.
0:29:27 > 0:29:33They have done all the work to a very high specification and it's a beautiful property
0:29:33 > 0:29:38situated in a nice, quiet village with absolutely amazing views.
0:29:38 > 0:29:44Although Stephen has moved in to the house, if he did do an about turn and decided to sell,
0:29:44 > 0:29:48would he and his dad stand to make a healthy profit?
0:29:48 > 0:29:53If this was on the open market, I would recommend an asking price
0:29:53 > 0:29:56of £160,000-£165,000.
0:29:56 > 0:30:03I would put it in the region of £160,000-£165,000.
0:30:03 > 0:30:09Once the garden's finished, the outside, we'd expect about 170, so that's good.
0:30:09 > 0:30:12There's a bit of spare cash there. It's all right.
0:30:12 > 0:30:19A pre-tax profit of £24,000-£29,000, then, but what about if they went down the rental route?
0:30:19 > 0:30:22If this property came to the rental market,
0:30:22 > 0:30:27I would recommend in the region of £500-£550 per calendar month.
0:30:27 > 0:30:30If this property went on the rental market today,
0:30:30 > 0:30:37they would achieve in the region of £525-£550 per calendar month.
0:30:37 > 0:30:42Good. But we're not going to rent it out. We're going to keep it now.
0:30:42 > 0:30:46Stephen's going to stay in it. He's happy.
0:30:46 > 0:30:49And that makes me happy, too.
0:30:56 > 0:31:01I'm in Normanton, a suburb of Derby in the east Midlands.
0:31:01 > 0:31:07This charming arboretum is an important landmark as it was one of the very first public parks
0:31:07 > 0:31:14in the country. Parts of it were used in Ken Russell's film of the novel Women In Love.
0:31:19 > 0:31:24So will I fall in love with today's bricks and mortar?
0:31:24 > 0:31:30It's certainly looking appealing. £55,000 plus was the guide price for this -
0:31:30 > 0:31:35a two-bedroom, semi-detached bungalow. Let's take a look.
0:31:35 > 0:31:41A broken bathtub isn't really my idea of a pleasant garden water feature.
0:31:41 > 0:31:47The outside certainly needs a good tidy up, but the building itself looks in good shape.
0:31:47 > 0:31:50So what sort of layout is in store?
0:31:50 > 0:31:56There's a little entrance area here which is always useful, somewhere to hang your coats.
0:31:56 > 0:32:00And then a pretty standard layout for a bungalow.
0:32:00 > 0:32:03A main central area off which the rooms spread.
0:32:03 > 0:32:08Bedroom one at the front there, bedroom two, a nice size there.
0:32:08 > 0:32:14It looks like somebody's taken off some of the plaster. Yes, right.
0:32:15 > 0:32:22It looks like a renovation has been begun and not quite finished yet, but that can be not a bad thing,
0:32:22 > 0:32:28especially if it's all the hard manual work of stripping off what was on the walls.
0:32:28 > 0:32:33So not necessarily a bad thing, although it's off-putting to see it.
0:32:33 > 0:32:39But through into this room, your living room, not a bad size. And we're not finished yet.
0:32:39 > 0:32:45You've got a big set of patio doors leading out into this little conservatory area
0:32:45 > 0:32:51and onwards into the garden. It's only a single skin, so not really very damp-proof,
0:32:51 > 0:32:57but it's a useful little bit of space and then continuing our tour of this little bungalow
0:32:57 > 0:33:02we complete the circuit in the kitchen. Again, walls have been stripped.
0:33:02 > 0:33:07Units have been taken out. That does bring up one very important point.
0:33:07 > 0:33:09It's not a fully-functional kitchen.
0:33:09 > 0:33:16You'd have a devil of a job getting a mortgage on this place, but at least some work is done.
0:33:16 > 0:33:21And you've got a very interesting canvas on which to paint your masterpiece.
0:33:21 > 0:33:24Or rather plaster your masterpiece.
0:33:24 > 0:33:28# Faster, faster, plaster casters Are you wasting time
0:33:28 > 0:33:33# Faster, faster, plaster casters Who's the next in line? #
0:33:33 > 0:33:37If you're not a plasterer and most of us aren't,
0:33:37 > 0:33:42don't underestimate what a big job this will be or how much it'll cost.
0:33:42 > 0:33:48Make sure your budget covers that as well as the price of a new kitchen and bathroom.
0:33:48 > 0:33:52You also need to be careful that it is mortgageable.
0:33:52 > 0:33:59There are many conditions lenders can insist on and here it's not just the kitchen that may raise eyebrows.
0:33:59 > 0:34:05On the plus side, the property is already kitted out with central heating and double glazing,
0:34:05 > 0:34:09so you won't get too cold while reassembling the walls.
0:34:09 > 0:34:13That's inside covered, but what about out back?
0:34:13 > 0:34:19At the rear of the property, a bit of a hotch potch of buildings with a bit of an extension,
0:34:19 > 0:34:23but one thing you certainly have got is space!
0:34:23 > 0:34:28A really nice-sized garden and also, I think,
0:34:28 > 0:34:33enough room to do a bit more impressive an extension, coming out
0:34:33 > 0:34:37and maybe even going up into a dormer like a couple have done.
0:34:37 > 0:34:43With all this space and the attractive guide price of £55,000, there's a lot of potential
0:34:43 > 0:34:48to make this two-bedroom bungalow bigger and better.
0:34:48 > 0:34:53- # I've just got to make it better - Got to make it better...- #
0:34:54 > 0:35:01We invited the auctioneer who sold it along to give his opinion on the best option.
0:35:01 > 0:35:09This is a bungalow that's been occupied by somebody fairly elderly for quite some years.
0:35:09 > 0:35:16I think you need to be careful what you spend. Properties in this area have a limited ceiling value.
0:35:16 > 0:35:22But providing you don't pay too much for it, it's got the makings of giving you some return.
0:35:23 > 0:35:30But what is that ceiling price and could this property reach it if given a good renovation?
0:35:30 > 0:35:36Whatever you do to this property, it probably has a ceiling value of no more than about £100,000.
0:35:36 > 0:35:41That's pushing it to the limit. Probably 90-95 is nearer the mark.
0:35:41 > 0:35:46If you put three bedrooms into it, if it is feasible to go upstairs
0:35:46 > 0:35:49or somehow you configure a third bedroom on ground level,
0:35:49 > 0:35:53you could put another £15,000 or £20,000 potentially onto its value
0:35:53 > 0:36:01but you've got a lot of costs to achieve that, so the benefit may actually be almost nothing.
0:36:01 > 0:36:05How about if it was put on the lettings market?
0:36:05 > 0:36:09This would have a rental value of about £400 per calendar month.
0:36:13 > 0:36:18Well, somebody's done the preliminary work for you,
0:36:18 > 0:36:25but there is still a lot to be done to make this place habitable. Let's see who fancied the challenge.
0:36:27 > 0:36:32Lot number 7. 55 plus is the guide price. Very realistic.
0:36:32 > 0:36:36Who's got 50? He has. Thank you. 50,000 is the opening bid.
0:36:36 > 0:36:4051. 52. 53.
0:36:40 > 0:36:4454. New bidder. 55. 56.
0:36:44 > 0:36:4857. 58. 59.
0:36:48 > 0:36:5060. 61.
0:36:50 > 0:36:5362. 63. 64.
0:36:53 > 0:36:5865. 66. 67.
0:36:58 > 0:37:0167 thousand and a half.
0:37:01 > 0:37:0468. And a half.
0:37:04 > 0:37:0669. And a half.
0:37:06 > 0:37:0970,000.
0:37:09 > 0:37:1170,000. Is that definite?
0:37:11 > 0:37:16Do I take that as a "no"? £70,000, then. Once, twice, third time.
0:37:16 > 0:37:19It's yours, madam. Thank you.
0:37:23 > 0:37:30'So determination won the day and that successful £70,000 bid was placed by community worker Bev.
0:37:30 > 0:37:36'She purchased the bungalow on behalf of herself and husband John, a plumbing and gas engineer.
0:37:36 > 0:37:41'Those skills will come in handy and this isn't their first foray into property.'
0:37:43 > 0:37:49- Bev, John, good to meet you both. Congratulations.- Thank you.- Tell me why you wanted to buy this place.
0:37:49 > 0:37:55- We just wanted another property to add to our portfolio.- How many house have you got?- This is our sixth.
0:37:55 > 0:37:58- Are they rented out? - Yeah, they're all rented out.
0:37:58 > 0:38:03- So why this particular house? - It was just an opportunity. It was within our price range.
0:38:03 > 0:38:08- I thought, "Let's go for it." That's why.- What was it that you liked?
0:38:08 > 0:38:11The location. We've never had a bungalow,
0:38:11 > 0:38:15so we thought a two-bedroom bungalow would be a good property let.
0:38:15 > 0:38:18- I didn't actually look inside the property.- No!
0:38:18 > 0:38:20I should know better, shouldn't I?
0:38:20 > 0:38:24I thought with double glazing, a combi boiler, a wee snooch around,
0:38:24 > 0:38:28- we thought, "It's bound to be OK." - Yeah, of course(!)
0:38:28 > 0:38:31# Naughty, naughty
0:38:32 > 0:38:35# Oh, I like it that way... #
0:38:37 > 0:38:41'Naughty, naughty Bev! I've said it before, but I'll say it again.
0:38:41 > 0:38:47'Purchasing a property without having seen it is a very risky strategy and often doesn't pay off,
0:38:47 > 0:38:51'particularly when it starts to throw up financial hurdles.'
0:38:51 > 0:38:57We had a bit of difficulty with the mortgage because the mortgage we went for, they said "no",
0:38:57 > 0:39:02so we had to go for a light refurb mortgage which obviously cost us a bit more,
0:39:02 > 0:39:07an extra 10% on the deposit, so more money to find than we anticipated.
0:39:07 > 0:39:14And they have criteria that we have to do so much of the work within a specified time frame, so...
0:39:14 > 0:39:17You discovered you couldn't get this mortgage
0:39:17 > 0:39:22- in between the time when you've exchanged contracts and completion? - Yes.- Tick-tock!
0:39:22 > 0:39:26I was in a panic at the time and I was actually devastated
0:39:26 > 0:39:31when John came back home and showed me all the pictures that he took on his mobile phone.
0:39:31 > 0:39:37- I thought, "What have I done?" My heart sank.- Did you have to go to a different mortgage provider?
0:39:37 > 0:39:41Fortunately, the mortgage provider that we were with,
0:39:41 > 0:39:45they just told us that they would have to give us a different product,
0:39:45 > 0:39:48so subsequently, it just cost us more deposit
0:39:48 > 0:39:53- and obviously, the monthly repayment are much greater.- Right.
0:39:53 > 0:39:56- Yeah, so... - A few sleepless nights, I imagine?
0:39:56 > 0:39:59Very much so.
0:40:00 > 0:40:05'John and Bev seem OK about it now, but this could easily have gone the other way.
0:40:05 > 0:40:09'Refurbishment mortgages are not necessarily easy to come by,
0:40:09 > 0:40:14'but are provided by some companies, specifically for landlords.
0:40:14 > 0:40:19'They take into account what the value of the property will be once renovation is carried out.
0:40:19 > 0:40:25'Not only must the work be done in a specific time frame, but it must make the property's value rise
0:40:25 > 0:40:30'to what the mortgage company have estimated its refurbished price would be
0:40:30 > 0:40:33'or the full funding won't be released,
0:40:33 > 0:40:38'so all added pressure, particularly for John, as he'll be doing most of the work here.'
0:40:40 > 0:40:43John, what will you do to sort it out?
0:40:43 > 0:40:47The bathroom first, then I'll do all the plastering, the kitchen.
0:40:47 > 0:40:51I think I'm going to try and move the boiler into the loft
0:40:51 > 0:40:55to create a bit more room for cupboards and units and stuff like that.
0:40:55 > 0:40:57Yeah, just a complete renovation.
0:40:57 > 0:41:02- And are you going to help at all with the renovation?- No.
0:41:02 > 0:41:04- LAUGHTER - I hope so.
0:41:05 > 0:41:09I'll pick all the... I'll help with the cupboards and stuff.
0:41:09 > 0:41:14- And pick all the faults. - I'll do a bit of painting. I can do a paintbrush, but not much.
0:41:14 > 0:41:19- So how long is it going to take you to do the work? - Probably four to six weeks.
0:41:19 > 0:41:23Obviously, I'll be doing it between my work schedule,
0:41:23 > 0:41:29so hopefully, I'll be here till probably 12 o'clock at night to try and get it done within that time.
0:41:29 > 0:41:33What sort of budget have you put aside for the work?
0:41:33 > 0:41:37- Well, I'm thinking around 6,000 to 8,000.- Really?
0:41:37 > 0:41:40Or even... At the most, 10.
0:41:40 > 0:41:43Right. But you are doing most of the work yourself
0:41:43 > 0:41:50- and you are lucky that you've got one of those skills that normally people have to buy in.- Yeah.- Yes.
0:41:50 > 0:41:55- Congratulations.- Thank you. - Good luck.- Thank you.- We look forward to seeing how you get on.
0:41:55 > 0:41:57- Cheers.- OK, thank you.
0:41:59 > 0:42:04There you go, Bev and John experiencing another very clear reason
0:42:04 > 0:42:08why you must look at a property before you buy it at auction
0:42:08 > 0:42:13because it's not just a case of what YOU might find when you eventually look inside,
0:42:13 > 0:42:19it's what somebody who is lending you the money might find and they may well turn round and say "nope"
0:42:19 > 0:42:21which leaves you in a right mess.
0:42:21 > 0:42:26Luckily, they got it sorted. Just a small job of sorting out the property now!
0:42:26 > 0:42:29You can find out how they get on later in the show.
0:42:32 > 0:42:38This is the part of the programme where we go back to find out if all those promises have come true.
0:42:38 > 0:42:44- Did our buyers do everything they said they would?- I think we should go back and find out.
0:42:45 > 0:42:51'We're back in Lee, just a mile south of beautiful Blackheath in south-east London.
0:42:51 > 0:42:57'Here, Austin and Imran paid 128,000 at the auction for this -
0:42:57 > 0:43:04'a supposed two-bed flat in this stunning Victorian building that would work much better as a one-bed.
0:43:04 > 0:43:08'They bought it as part of an intriguing business model.'
0:43:08 > 0:43:11- So you've not bought this for yourselves?- No.
0:43:11 > 0:43:16We bought this with two or three other clients. They pooled their money together.
0:43:16 > 0:43:20We find projects for them, then we project-manage the refurbishment.
0:43:20 > 0:43:25They see the project once we've bought it. They saw it last week for the first time.
0:43:25 > 0:43:32- You take all the hard work and the stress out of buying property?- Yes. - Fabulous.- Or take the stress on!
0:43:32 > 0:43:37Here's hoping the renovation of this place was stress-free for all involved.
0:43:37 > 0:43:39We last met them 11 weeks ago.
0:43:39 > 0:43:45I can't wait to see if this truly tiny property has now been transformed.
0:43:49 > 0:43:55Unsurprisingly, they have delivered and turned this place into a wonderful one-bed
0:43:55 > 0:43:58by knocking the previous two bedrooms together
0:43:58 > 0:44:02to make a large and light, open-plan kitchen and living space...
0:44:06 > 0:44:09..and turning what was the kitchen into the bedroom.
0:44:10 > 0:44:17This was originally the kitchen, so there were kitchen units along there which were just disgusting
0:44:17 > 0:44:21and here there was a doorway going into one of the bedrooms.
0:44:21 > 0:44:27So we decided to make this the master bedroom just because of the size, the light's really nice.
0:44:27 > 0:44:30Although the road's there, we're set back from it a bit,
0:44:30 > 0:44:35but having a bigger bedroom was definitely the right way forward.
0:44:35 > 0:44:39We obviously blocked up this wall, moved the whole kitchen out.
0:44:39 > 0:44:44We built in some storage. There's still enough room for a double bed.
0:44:44 > 0:44:49The slopey ceiling actually makes it feel really cosy and I think that's important for a bedroom.
0:44:49 > 0:44:54With the carpet, in winter, it's going to be a really nice place to come and relax.
0:44:54 > 0:44:58Yeah, what we've done to it, I'm really pleased with it.
0:44:58 > 0:45:02There are a few things to finish off throughout,
0:45:02 > 0:45:07but the flat has been painted, re-carpeted, and has a new kitchen and bathroom suite.
0:45:07 > 0:45:12The loo is still separate from the bathroom, but now at least has its own basin.
0:45:12 > 0:45:16Overall, this now feels much more liveable and modern.
0:45:17 > 0:45:21The level of spec was important. The wooden floor was a key thing.
0:45:21 > 0:45:24Spots were a key thing, a nice, neutral kitchen,
0:45:24 > 0:45:30so we had to save some money some places and we spent the money on the wooden floors and the spotlights.
0:45:30 > 0:45:35And building the wardrobes was expensive. It's just give and take a little bit.
0:45:35 > 0:45:39There's little extras like the chrom fittings with the light switches.
0:45:39 > 0:45:42They're important just to try and add that value.
0:45:42 > 0:45:45It's just about trying not to overstretch the budget,
0:45:45 > 0:45:49but making sure the money coming through on the spend is realistic,
0:45:49 > 0:45:56spending where people see the value being added, but we did what we coul with the budget we had.
0:45:56 > 0:45:58# That's M-O-N-E-Y
0:45:58 > 0:46:00# So sexy... #
0:46:00 > 0:46:05Ah, yes, the all-important budget. How did that work out here?
0:46:05 > 0:46:10The budget went really well. We said before we'd spend between 20,000 and 25,000
0:46:10 > 0:46:15So far, we're at the 20,000-mark, so we're at the lower end of the budget
0:46:15 > 0:46:18Obviously, there's a few little finishing touches,
0:46:18 > 0:46:22but I think we'll come in at the £20,000-mark, so we're really happy with the spend.
0:46:22 > 0:46:26- We didn't want to go over. - We didn't have the money to go over.
0:46:26 > 0:46:30That was particularly important for these guys
0:46:30 > 0:46:33as it wasn't their money they were spending.
0:46:33 > 0:46:36They had hoped to complete the renovation in eight weeks,
0:46:36 > 0:46:40but 11 weeks in and there is still a little bit left to do.
0:46:40 > 0:46:45We are over the timescale, but we're under the budget, so it's not too bad.
0:46:45 > 0:46:50In a few days, we should be completely finished, then it'll be straight on the market.
0:46:50 > 0:46:54- What we've done to it, it should sell quite quickly.- Hmm.- Hopefully.
0:46:54 > 0:47:01With the cost of the property being 128,000, added to a £20,000 spend on the work,
0:47:01 > 0:47:05the total outlay here comes to £148,000.
0:47:07 > 0:47:12We invited two local estate agents to cast their eyes over the flat.
0:47:15 > 0:47:19It's a very nice property. It's not massive, but it's very well laid out
0:47:19 > 0:47:24They've done the right things to make it feel big and spacious.
0:47:24 > 0:47:27The property is done to a very high standard.
0:47:27 > 0:47:29It's nice, very clean, bright, airy.
0:47:29 > 0:47:33He's used good space here. He's made full use of good space.
0:47:33 > 0:47:35Yeah, very nice.
0:47:35 > 0:47:40Open-plan kitchen/living rooms are difficult. Some people like them some people don't.
0:47:40 > 0:47:44Years ago, they weren't popular at all. They've become more popular.
0:47:44 > 0:47:48The kitchen mustn't dominate the room. I think they've got that right
0:47:49 > 0:47:56So they think Austin and Imran have done a great job here, but will the finances prove fruitful?
0:47:56 > 0:48:01If they were to consider letting it, how much could they rent it out for?
0:48:01 > 0:48:03If I was renting this property,
0:48:03 > 0:48:07I believe I would get £800 to £850 per calendar month.
0:48:07 > 0:48:12I believe this property would achieve anywhere from £900 to £950 per calendar month.
0:48:12 > 0:48:16Yeah, 900 to 950 was my kind of guess on it.
0:48:16 > 0:48:20Yeah, if we got about £900 per month I'd be quite happy with that.
0:48:20 > 0:48:24A pretty good return on the investment, so that's good.
0:48:25 > 0:48:31Those suggestions would mean a rental yield of between 6 and 7.5% which would be very healthy,
0:48:31 > 0:48:35but with Austin and Imran ready to move on to their next project
0:48:35 > 0:48:40and as well as their clients set on selling, what could it sell for?
0:48:42 > 0:48:48If I was putting it on for sale, I'd be looking for it to achieve £180,000 to £185,000.
0:48:48 > 0:48:53I would say this property would achieve from £180,000 to £190,000.
0:48:53 > 0:48:56- That's good. - Exactly what we thought, yeah.
0:48:56 > 0:48:59We aimed for the 190-mark, so that's in line with what we wanted.
0:48:59 > 0:49:06So a potential £32,000 to £42,000 profit to be made after the usual taxes and expenses.
0:49:06 > 0:49:10It seems like this has all come together beautifully.
0:49:11 > 0:49:16Yeah, it has. It's been quite an easy project. There's only been a slight delay.
0:49:16 > 0:49:23- The costs have been good.- As there's not been too many problems with the project, it's been quite nice.
0:49:23 > 0:49:28- I wouldn't mind a bit of a challenge for the next one maybe. - Don't say that!
0:49:30 > 0:49:36'It's destination Derby now where, earlier, we met husband and wife team Bev and John.
0:49:36 > 0:49:40'They paid £70,000 at auction for this bungalow
0:49:40 > 0:49:44'which they hadn't even viewed prior to purchase. Tut-tut!
0:49:44 > 0:49:51'The place needed serious attention and it was up to plumbing and gas engineer John to get down to it.'
0:49:52 > 0:49:56So, John, tell me what you're going to do to sort it out.
0:49:56 > 0:50:01The bathroom first, then all the plastering, the kitchen. Just a complete renovation.
0:50:01 > 0:50:05- Are you going to help at all with the renovation?- No.
0:50:05 > 0:50:08- LAUGHTER - I hope so.
0:50:08 > 0:50:14- I'll pick all the... I'll help with the cupboards and stuff. - And pick all the faults.
0:50:14 > 0:50:18I'll do a bit of painting. I can do a paintbrush, but not much.
0:50:18 > 0:50:23It was going to take more than a spot of painting to get this place licked into shape.
0:50:23 > 0:50:26Because the property was predominantly bare brick,
0:50:26 > 0:50:30they had to take out a light refurbishment mortgage.
0:50:30 > 0:50:37One condition of that was that they complete the work in a set period of time, so the pressure was on.
0:50:37 > 0:50:43We've come back 12 weeks after we first met them to see if the house has gone from hopeless to homely.
0:51:07 > 0:51:09It looks great so far.
0:51:09 > 0:51:14Although there are a few finishing touches to be added in here, it's nearly done.
0:51:14 > 0:51:18And with it having needed so much work, that must be a huge relief.
0:51:18 > 0:51:22I'm glad that the project is now coming to a conclusion
0:51:22 > 0:51:25because it's taken a lot of time to actually do.
0:51:25 > 0:51:29It's been tough, but I enjoyed it, I totally enjoyed it.
0:51:29 > 0:51:35I could come in the evenings, put my ghetto-blaster on and lock into a zone. It was a pleasure to do it.
0:51:35 > 0:51:40It makes a world of difference when renovating that you enjoy what you're doing,
0:51:40 > 0:51:45otherwise the hard graft can feel like a real drag, rather than a labour of love.
0:51:45 > 0:51:50And here that wasn't the only advantage John and Bev had on their side.
0:51:50 > 0:51:55Being a Gas Safe engineer, it enabled me to do a lot with the central heating system,
0:51:55 > 0:51:57move things about, fit radiators.
0:51:57 > 0:52:00We made a lot of savings that way.
0:52:00 > 0:52:06The only thing we'll get an expert i to do is the garden because that in itself is time-consuming.
0:52:06 > 0:52:12It will be cheaper. The time I could go out working and earning, it'll be easier to pay someone to do it.
0:52:12 > 0:52:16- Employ the right people. - They'll do it in a week. I'd be there for a month!
0:52:16 > 0:52:20Ah, yes, the garden. It was always a good space with potential.
0:52:20 > 0:52:23Now it's been cleared and is ready for its makeover.
0:52:23 > 0:52:25At the front, not much has changed yet,
0:52:25 > 0:52:29but Bev and John are planning to make the most of it
0:52:29 > 0:52:33by adding off-street parking and tidying up the driveway.
0:52:33 > 0:52:37That will make all the difference, particularly to the end value.
0:52:37 > 0:52:42They expect, when they finish, to come in at around £10,000 for this renovation.
0:52:42 > 0:52:49That was their maximum budget, although they helped keep costs down by getting family members involved.
0:52:49 > 0:52:52Even Bev turned her hand to some of the work.
0:52:54 > 0:52:58I have actually done some covings myself.
0:52:58 > 0:53:00Well, filling in.
0:53:00 > 0:53:04- It took you two days, didn't it? - Yeah, but hey, I did my little bit.
0:53:04 > 0:53:08They had hoped to get it all completed in four to six weeks
0:53:08 > 0:53:11and we're 12 weeks in, so they have run over,
0:53:11 > 0:53:17but they're nearly there and have a pair of tenants lined up for when everything is finished.
0:53:17 > 0:53:23This had an impact on the design of particular aspects of the inside of the property.
0:53:23 > 0:53:26With this kitchen in mind for the elderly couple,
0:53:26 > 0:53:32we decided not to actually have a free-standing cooker with them bending down and everything else,
0:53:32 > 0:53:39so we've actually had the hob and we've done the built-in oven which is a nice feature as well.
0:53:39 > 0:53:44We've also got the splashback and that's about the only thing left to be done in the kitchen,
0:53:44 > 0:53:48then it'll be ready for them to move in in the next couple of weeks.
0:53:49 > 0:53:52Bev and John bought the bungalow for 70,000.
0:53:52 > 0:53:58When finished, they hope to have spent no more than 10,000 on the renovations,
0:53:58 > 0:54:00bringing their total to £80,000.
0:54:00 > 0:54:04We invited a local estate agent and the auctioneer who sold it
0:54:04 > 0:54:07to give us their opinions on it.
0:54:09 > 0:54:11I think it's fair to say
0:54:11 > 0:54:15that when you see a property in pretty derelict condition...
0:54:15 > 0:54:17That could be overstating it slightly.
0:54:17 > 0:54:22..and then you see it renovated, you always realise there's a huge change
0:54:22 > 0:54:26and the impression is always very good, so yes, I'm impressed.
0:54:26 > 0:54:28I've had a good look round the property.
0:54:28 > 0:54:32They've done remarkably well in the time that they've had.
0:54:32 > 0:54:37It presents very well. It's been extended at some time in the past, so it's a good size too.
0:54:37 > 0:54:42So it's all good so far, but how about the all-important figures?
0:54:42 > 0:54:48The couple bought this to let out and have tenants waiting in the wings.
0:54:48 > 0:54:50What rental can they expect?
0:54:50 > 0:54:54Very rentable, but I think its ceiling value would probably be
0:54:54 > 0:54:57something in the order of £525 a calendar month.
0:54:57 > 0:55:02500 seems more comfortable, but it's somewhere around those figures.
0:55:02 > 0:55:05I think you'd be looking at £550 per calendar month.
0:55:05 > 0:55:09I would have expected that sort of rent, to be honest.
0:55:09 > 0:55:13We've got a few other properties in the area and that's the sort of...
0:55:13 > 0:55:18That's the sort of rent, but this is a two-bedroom, so 500 is a very good rent.
0:55:18 > 0:55:26Even that lower figure of £500 per calendar month would yield a healthy 7.5%.
0:55:26 > 0:55:29John and Bev's prospective tenants have indicated
0:55:29 > 0:55:33they might be interested in buying the property eventually,
0:55:33 > 0:55:36so could this be a profitable option?
0:55:36 > 0:55:42I think if this went on the market with the outside work completed, and that's essential,
0:55:42 > 0:55:48it would have an asking price of probably around £115,000 and I would expect them to achieve close to that
0:55:48 > 0:55:53If you put this property on the market, you'd be looking at offers in the region of £110,000.
0:55:53 > 0:56:00So, a pre-tax and expenses profit of between £30,000 and £35,000. Sound good?
0:56:00 > 0:56:06- That's better than we thought.- Whoa! - A lot better than we thought.- Whoa!
0:56:06 > 0:56:11- We thought maybe 90, up there, but I'm pleased with that. - We're in the money.
0:56:11 > 0:56:14It'd certainly be worth considering at some point.
0:56:14 > 0:56:17What else does their future hold?
0:56:17 > 0:56:23We will try and go to the auction probably again nearer Christmas, so it's been quite good, really.
0:56:23 > 0:56:28- I must admit.- It's been really good. I mean, I'd do this all day long.
0:56:28 > 0:56:33Well, John, if you keep going the way you're going, you might just get to.
0:56:37 > 0:56:43See you next time with more auction buying stories, some successful, some not so.
0:56:43 > 0:56:48- To be continued here on Homes Under The Hammer. - See you then.- Goodbye.- Goodbye.
0:57:09 > 0:57:12Subtitles by Red Bee Media Ltd