Episode 68

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0:00:02 > 0:00:05- Hello and welcome to the programme. - They say every house tells a story

0:00:05 > 0:00:07and we have certainly found that to be true.

0:00:07 > 0:00:10There are always tales to tell and secrets to uncover

0:00:10 > 0:00:13when you buy your home under the hammer.

0:00:38 > 0:00:41At auction, properties are bought on a buyer beware basis,

0:00:41 > 0:00:46so it's up to you to check everything out before you bid.

0:00:46 > 0:00:49So, did today's buyers get lucky with their purchases

0:00:49 > 0:00:54or were they in for some nasty surprises? Here's what they bought.

0:00:55 > 0:00:59I'm in a Cardiff maisonette that's not got much up top.

0:00:59 > 0:01:02Oops! The ceiling's down in the bedroom.

0:01:02 > 0:01:04A lot of rubble on the floor.

0:01:05 > 0:01:10In this mixed use property in Lanark, I'm thinking, if the shoe fits...?

0:01:10 > 0:01:13There you go. Size six, if you're interested. They are available.

0:01:15 > 0:01:17And in this mews house in Devon,

0:01:17 > 0:01:20a relaxing break is the order of the day.

0:01:21 > 0:01:25A towel and a Devon cream tea, please.

0:01:26 > 0:01:28All these properties were sold at auction.

0:01:28 > 0:01:32We'll find out who bought them and what they paid for them

0:01:32 > 0:01:34when they went under the hammer.

0:01:37 > 0:01:40I'm in Cardiff, in an area called Lakeside

0:01:40 > 0:01:43and no prizes for guessing why.

0:01:43 > 0:01:45You're only three miles from the city centre here

0:01:45 > 0:01:49but it's got more of a suburban, almost countryside feel,

0:01:49 > 0:01:52with beautiful Roath Park at its heart.

0:01:52 > 0:01:55Perfect for enjoying the slightly sunnier days!

0:01:55 > 0:01:59The question is, will property in Lakeside be a bright prospect?

0:01:59 > 0:02:02# Didn't it rain children?

0:02:02 > 0:02:05# Rain, oh my Lord. #

0:02:05 > 0:02:09Roath Park in this Cardiff suburb really is fantastic,

0:02:09 > 0:02:12despite today's weather.

0:02:12 > 0:02:15The area is home to the Metropolitan University campus

0:02:15 > 0:02:18and the Lakeside is a popular area for families

0:02:18 > 0:02:20with all these open spaces.

0:02:27 > 0:02:30To be honest, anywhere within striking distance of that beautiful park

0:02:30 > 0:02:34and all those facilities would get me reaching for my wallet.

0:02:34 > 0:02:37And here, you are only a ten-minute walk away.

0:02:37 > 0:02:41The property in this area is undoubtedly less attractive on first glance

0:02:41 > 0:02:43but the road, it's nice enough,

0:02:43 > 0:02:49and the guide price for this two-bedroom maisonette, well, £89,000.

0:02:49 > 0:02:51I think it's looking lovely.

0:02:51 > 0:02:53What makes a flat a maisonette?

0:02:53 > 0:02:56Usually, it's split over two floors or as in this case,

0:02:56 > 0:02:59it has its own private stairs and access.

0:02:59 > 0:03:03This maisonette was built when flares were big and so were platform shoes.

0:03:03 > 0:03:05The 1970s.

0:03:05 > 0:03:09# Get it on, bang a gong Get it on. #

0:03:09 > 0:03:14The property occupies all the first floor on the right-hand side of the building

0:03:14 > 0:03:17and does have its own little bit of garden.

0:03:17 > 0:03:20It doesn't offer much privacy but with any flat,

0:03:20 > 0:03:23outside space is a bonus.

0:03:23 > 0:03:28Not the warmest of welcomes. It is in a bit of a state. It really is.

0:03:28 > 0:03:32You can see somebody has started to take the tiles off in the bathroom.

0:03:32 > 0:03:34All of that will need to be completely redone.

0:03:34 > 0:03:38You have got a lot of space. It is quite airy.

0:03:38 > 0:03:42Oops! The ceiling is down in the bedroom. A lot of rubble on the floor.

0:03:42 > 0:03:45But again, lots of light and a nice big room. But a storage heater.

0:03:45 > 0:03:48Make sure you note that when you do viewings

0:03:48 > 0:03:51because to install central heating in a property like this

0:03:51 > 0:03:54really can be costly, and it depends

0:03:54 > 0:03:57whether whoever buys this wants to have storage heaters

0:03:57 > 0:04:01and whether there is even gas central heating in this building.

0:04:01 > 0:04:03So that is something to think about.

0:04:03 > 0:04:06Kitchen. Not a huge space but plenty.

0:04:06 > 0:04:08Really nice size second bedroom there.

0:04:08 > 0:04:12And the lounge through here. Now, I've just had an idea.

0:04:12 > 0:04:15I can hear the old brain whirring. Come with me.

0:04:15 > 0:04:19What about if you swap these two rooms over?

0:04:19 > 0:04:24So you have that as your second bedroom and you have this room here as the kitchen.

0:04:24 > 0:04:27You could put all the units down one end,

0:04:27 > 0:04:31you could take this wall out and then you would have an amazing,

0:04:31 > 0:04:34really big, double aspect windows, loads of space,

0:04:34 > 0:04:38loads of light, sofas down here, telly, nice big table,

0:04:38 > 0:04:41all your units down the other end. I think that would really work.

0:04:41 > 0:04:43Wouldn't that be a better way to live?

0:04:43 > 0:04:46# Baby please, please

0:04:46 > 0:04:48# Don't leave me this way. #

0:04:48 > 0:04:52That's how I see this property but then again,

0:04:52 > 0:04:55not everyone likes open plan with cooking smells

0:04:55 > 0:04:58and dirty dishes in the living areas.

0:04:58 > 0:05:00More importantly, would it make financial sense?

0:05:00 > 0:05:03Some flats on the estate have gone up into the loft

0:05:03 > 0:05:07and in this case, access has been made easy for a quick peek.

0:05:07 > 0:05:11I don't think there would be masses of headroom so again,

0:05:11 > 0:05:15it may not be worth the cost. Another note of caution.

0:05:15 > 0:05:19The maisonette is leasehold so you might not even be allowed to use it.

0:05:21 > 0:05:23It's an interesting one, this.

0:05:23 > 0:05:27Maisonettes often appeal to first-time buyers,

0:05:27 > 0:05:30young couples, sharers even.

0:05:30 > 0:05:33But here in Lakeside, it's fully family-fied.

0:05:33 > 0:05:36So could selling or renting this place be a problem?

0:05:36 > 0:05:38No, I don't think you need to worry.

0:05:38 > 0:05:43I still think it would suit a small family just starting out

0:05:43 > 0:05:45who are prepared to sacrifice the space of a house

0:05:45 > 0:05:48for the desirable and toddler friendly location.

0:05:48 > 0:05:50A compromise maybe,

0:05:50 > 0:05:54and inevitably they would have to move on as the family grew.

0:05:54 > 0:05:56But always remember, when viewing property,

0:05:56 > 0:05:59if you've got the location right, it's hard to go wrong

0:05:59 > 0:06:03and never underestimate the power of a postcode.

0:06:04 > 0:06:08If families want to live in an area for schools or amenities,

0:06:08 > 0:06:10they will compromise on space.

0:06:10 > 0:06:14What does a local estate agent make of this first floor maisonette,

0:06:14 > 0:06:16guided at £89,000?

0:06:16 > 0:06:19It's a very spacious apartment.

0:06:19 > 0:06:22My first impression is that you can do a lot with the design.

0:06:22 > 0:06:25In my opinion, the amount of money that you would need to spend

0:06:25 > 0:06:28to refurbish this apartment is probably in the region

0:06:28 > 0:06:30of 20 to 25,000.

0:06:30 > 0:06:35It is in a particularly good zone so it's probably worthwhile spending that little bit more,

0:06:35 > 0:06:39getting the quality, which will then get a good enhancement in price on resale value.

0:06:39 > 0:06:43Knowing the area so well, what does he think the resale value might be?

0:06:43 > 0:06:47In my opinion, the property fully renovated to a good standard

0:06:47 > 0:06:50would be worth in the region of £145,000.

0:06:50 > 0:06:54With that school up the road and university around the corner,

0:06:54 > 0:06:58what could the property attract if it was put on the rental market?

0:06:58 > 0:07:04In my opinion, the amount of rent this could achieve per calendar month is £625 to £650.

0:07:06 > 0:07:10Small, yes, but practical, and in a highly desirable location.

0:07:10 > 0:07:12For that reason alone,

0:07:12 > 0:07:15I am sure there was plenty of interest at the auction.

0:07:18 > 0:07:21On to lot number 38.

0:07:21 > 0:07:24Looking for 85 to get things started, ladies and gentlemen.

0:07:24 > 0:07:28Who's got 80 then? 80, thank you. 80,000 is bid. I've got 80.

0:07:28 > 0:07:32And one, I am looking for. One, thank you. 81,000, I've got. Two?

0:07:32 > 0:07:3882,000? 82,000. I'm looking for three. 83,000. Four. 84,000.

0:07:38 > 0:07:44Who's going to put me at 85? Five. 85,000 is bid. 86, thank you. 86,000.

0:07:44 > 0:07:48I'm looking for seven. 86,000 I have, thank you very much. 87.

0:07:48 > 0:07:5388, thank you. I'm looking for 89. 89. 90, sir.

0:07:53 > 0:07:58I'm looking for 90 and one. And two. 92 is behind you, madam.

0:07:58 > 0:08:03So 93, thank you. 94, sir. 94. 95, I'm looking for off you, madam.

0:08:03 > 0:08:0795, thank you. 96, I'm looking for off you, sir.

0:08:07 > 0:08:1195, madam, I have off you. 95 is in the market. Any advance? 96.

0:08:11 > 0:08:13Thank you, madam. 96.

0:08:14 > 0:08:2197. 97,000. 97,000. Any increase? Be quick. 97,000.

0:08:21 > 0:08:24Madam, 97,000.

0:08:24 > 0:08:30That successful bid of 97,000, £8,000 over the guide price,

0:08:30 > 0:08:32was made by Cardiff local, Rhian.

0:08:32 > 0:08:34# Art for art's sake

0:08:36 > 0:08:39# Money for God's sake. #

0:08:39 > 0:08:43She runs an art gallery in Cardiff and renovates properties as a sideline.

0:08:43 > 0:08:46Rhian, congratulations. Well done.

0:08:46 > 0:08:51Tell me, did you desperately want to buy this at auction? Were you happy when the hammer went down?

0:08:51 > 0:08:53I was thrilled.

0:08:53 > 0:08:56I had only actually come back from holiday the day before

0:08:56 > 0:09:00so I hadn't actually been inside the property.

0:09:00 > 0:09:02But I did a bit of research when I was away on holiday.

0:09:02 > 0:09:05I had my computer with me.

0:09:05 > 0:09:08I had set a ceiling price for the property

0:09:08 > 0:09:11and I got it just underneath the price.

0:09:11 > 0:09:15Tell me your experience. How many times have you done this?

0:09:15 > 0:09:18- I've probably done it about 30 times, I would think.- Really?- Yes.

0:09:18 > 0:09:22- So you're an old hand. You've bought and sold many times.- Yes.

0:09:22 > 0:09:26I've bought and done up and kept and I've bought and done up and sold.

0:09:26 > 0:09:29- What else to you do?- I've actually got an art gallery.- Have you?- Yes.

0:09:29 > 0:09:33A fine art gallery in the centre of Cardiff.

0:09:33 > 0:09:35# Art for art's sake

0:09:35 > 0:09:37# Money for God's sake. #

0:09:38 > 0:09:42From fine art to finding the beauty in a rundown flat,

0:09:42 > 0:09:45I'm sure her day job gives her an eye for renovations and the

0:09:45 > 0:09:49confidence just to go for it, even though she didn't see it pre-auction.

0:09:49 > 0:09:52You did all that research on your computer

0:09:52 > 0:09:56but you didn't have a chance to come in and have a look around.

0:09:56 > 0:09:59- Did that worry you?- Not really, no.

0:09:59 > 0:10:03When I set a budget for the work that I thought would need to be done,

0:10:03 > 0:10:06I set a budget that really covered all potential eventualities

0:10:06 > 0:10:10and as it turned out, I'm probably going to need the full budget.

0:10:10 > 0:10:15Absolutely. What about the fact that it doesn't have gas central heating?

0:10:15 > 0:10:19- Straight away, that takes such a big chunk of your budget.- It's heating.

0:10:19 > 0:10:24It's going to have to be rewired. Totally new kitchen, new bathroom.

0:10:24 > 0:10:27Floors and ceilings as well.

0:10:27 > 0:10:31That was the other surprise when I when came to see the property

0:10:31 > 0:10:33on the day, after I'd bought it, there were no ceilings.

0:10:33 > 0:10:35They've all gone!

0:10:35 > 0:10:37The thing I've learnt along the way,

0:10:37 > 0:10:40if you do up a two-bedroom flat or a four-bedroom flat

0:10:40 > 0:10:43or even a very small house, it can cost the same as a two-bedroom flat

0:10:43 > 0:10:46because you've still got to put in a new kitchen, new bathroom,

0:10:46 > 0:10:49all the heating, all the bits and pieces.

0:10:49 > 0:10:51What's good about this place is that it's solid.

0:10:51 > 0:10:55An older property, and I have done older properties in the past,

0:10:55 > 0:10:59you can potentially have problems with the quality of the plaster

0:10:59 > 0:11:02and then you're looking at replastering a lot of the rooms as well.

0:11:02 > 0:11:06- There is no problem with damp here either.- So you have got good walls.

0:11:06 > 0:11:09Yes. Very solid and very solid floors as well.

0:11:09 > 0:11:12So how much have you set aside in total?

0:11:12 > 0:11:15- In total, I would like to bring it in at about 15,000.- Really?

0:11:15 > 0:11:17I don't know what you think of this idea,

0:11:17 > 0:11:20but while I was here, I was thinking, how would I like to live?

0:11:20 > 0:11:23What about if you knock this wall down

0:11:23 > 0:11:25and swap the kitchen for the second bedroom

0:11:25 > 0:11:30so you have a nice, big, open plan kitchen, dining, living area.

0:11:30 > 0:11:34I know you get a smaller second bedroom but you could still get a double bed in there.

0:11:34 > 0:11:38Then you've just got the double aspect, big, light, spacious room.

0:11:38 > 0:11:41That sounds really interesting, actually.

0:11:41 > 0:11:46I think a couple of considerations is about what kind of people

0:11:46 > 0:11:50are actually going to be interested in buying a property here.

0:11:50 > 0:11:54So I need to factor that in as well.

0:11:54 > 0:11:57Is this kind of location going to appeal to a very young couple?

0:11:57 > 0:12:00I don't think it's going to appeal to an older couple

0:12:00 > 0:12:03- because you've got a lot of stairs. - Maybe.

0:12:03 > 0:12:08The other consideration as well is... That is a supporting wall.

0:12:08 > 0:12:13So I'd have to put in a beam there and that would add considerably to the cost.

0:12:13 > 0:12:16It would, but I really believe it would give you the wow factor.

0:12:16 > 0:12:19You have given me something to think about, actually.

0:12:19 > 0:12:23Maybe there is a way around, by not knocking the whole wall down

0:12:23 > 0:12:25but we might be able to do something.

0:12:25 > 0:12:28I quite like the idea of swapping the two around.

0:12:28 > 0:12:31So you've got that artistic, creative flair,

0:12:31 > 0:12:34so what are we going to expect to see when we come back?

0:12:34 > 0:12:37It certainly won't be plain white walls.

0:12:37 > 0:12:40I don't mean very loud colours

0:12:40 > 0:12:44but something subtle that accentuates the space.

0:12:44 > 0:12:49I'm excited to see the outcome. Good luck with this property. I know you know what you're doing.

0:12:49 > 0:12:51Thanks ever so much. I appreciate it.

0:12:52 > 0:12:56So no plain white walls for Rhian. That is music to my ears.

0:12:56 > 0:13:00A bit of creativity goes a long way when you are renovating property.

0:13:00 > 0:13:03But will she swap the kitchen and the second bedroom?

0:13:03 > 0:13:05And will she stick to 15 grand?

0:13:05 > 0:13:09You can find out what she does later on in the programme.

0:13:11 > 0:13:15I'm in Lanark, situated between the tranquillity

0:13:15 > 0:13:17of the Southern Uplands

0:13:17 > 0:13:20and the more frenetic industrial belt of Scotland.

0:13:20 > 0:13:24It's been an important market town since David I

0:13:24 > 0:13:27made it a royal burgh in 1140.

0:13:27 > 0:13:30Nowadays, its main focus is agriculture,

0:13:30 > 0:13:33with regular livestock auctions on the outskirts of town.

0:13:33 > 0:13:36Well, the property's right on the high street

0:13:36 > 0:13:38in one of these wonderful old buildings.

0:13:38 > 0:13:42100 years ago, it was a draper's and general outfitter's,

0:13:42 > 0:13:45which, according to an advert, in 1898,

0:13:45 > 0:13:47was under most efficient management.

0:13:47 > 0:13:50Well, after 40 years as a shoe shop,

0:13:50 > 0:13:53it closed and it was obviously recently up for auction

0:13:53 > 0:13:57with a guide price of £75-80,000,

0:13:57 > 0:14:00which given that it includes a two-bedroom flat upstairs,

0:14:00 > 0:14:03sounds worthy of investigation.

0:14:03 > 0:14:06The maisonette flat on the first and second floor

0:14:06 > 0:14:10has been let since the 1970s, so we can't gain access today.

0:14:10 > 0:14:14If the tired and tatty appearance of the ground floor frontage

0:14:14 > 0:14:19is anything to go by, this is retail in need of some therapy.

0:14:20 > 0:14:23Oh, wow!

0:14:23 > 0:14:26A creaky door, to boot. This is wonderful.

0:14:26 > 0:14:29It's got a real olde-worlde feel to it

0:14:29 > 0:14:32and look at the height of the ceilings!

0:14:32 > 0:14:34You've got cornicing... very unusual.

0:14:34 > 0:14:36Yes, you can imagine, in days gone by,

0:14:36 > 0:14:40these shelves stacked high with shoes, or jumpers or whatever.

0:14:40 > 0:14:44But in terms of a commercial space, a good-sized floor area

0:14:44 > 0:14:46and that's what you need. Great stuff!

0:14:48 > 0:14:51# You're window shopping

0:14:51 > 0:14:55# Just window shopping... #

0:14:55 > 0:14:59I can't see that this shop has changed much since it was built.

0:14:59 > 0:15:02As far as the ground floor goes, this is pretty much it,

0:15:02 > 0:15:05with a small storage area at the back.

0:15:06 > 0:15:09And a solid-looking safe for the day's takings.

0:15:09 > 0:15:13The first floor is split, with the back of the building

0:15:13 > 0:15:16belonging to that flat on the top floor,

0:15:16 > 0:15:19which has been let to the same tenant since the 1970s.

0:15:19 > 0:15:22We can access the front portion of the building, though.

0:15:22 > 0:15:24Well, upstairs there are staff facilities.

0:15:24 > 0:15:27You've got a loo, a kitchen and a storage area,

0:15:27 > 0:15:31a few remnants of what the shop once was, a shoe shop.

0:15:31 > 0:15:33There you go, a pair of size 6, if you're interested.

0:15:33 > 0:15:35They are available.

0:15:35 > 0:15:38But here, a really nice room, look at this,

0:15:38 > 0:15:39lots of light pouring in through the window.

0:15:39 > 0:15:42Now we are on a road, obviously the high street there,

0:15:42 > 0:15:45so, there's quite a bit of noise, but it's a nice-sized space.

0:15:45 > 0:15:49On the face of it, the property's not in terrible condition. However,

0:15:49 > 0:15:53I have discovered some signs of potential problems.

0:15:53 > 0:15:56There's a bit of a damp patch on the ceiling there.

0:15:56 > 0:15:59This wall has got all sorts of problems, and it's caused

0:15:59 > 0:16:02real issues with the surrounds of the window there.

0:16:02 > 0:16:06It's become rotten. My thoughts are, a problem with the roof,

0:16:06 > 0:16:08either historic or current.

0:16:08 > 0:16:09Whatever, it needs to be checked out.

0:16:09 > 0:16:13I love this space, it's got a really great feeling to it,

0:16:13 > 0:16:16but this accommodation and the old shoe shop

0:16:16 > 0:16:18are in a conservation area,

0:16:18 > 0:16:21so, any work will be monitored by the council

0:16:21 > 0:16:24and will definitely not be a..."shoe-in".

0:16:24 > 0:16:28Restoration and replication will be the name of the game,

0:16:28 > 0:16:30not rip out and replace.

0:16:30 > 0:16:33That will get the tills ringing, as will the roof repair

0:16:33 > 0:16:37and then the refurbishment. Then there's that rented flat

0:16:37 > 0:16:40which has the back of this first floor and the top floor.

0:16:40 > 0:16:44It does raise a few issues like access.

0:16:44 > 0:16:46The tenants use this rear stairway,

0:16:46 > 0:16:48rather than traipsing through the shop.

0:16:48 > 0:16:51At the top of the stairs, the flat's front door

0:16:51 > 0:16:54is next to another storage area.

0:16:54 > 0:16:57The layout across the floors is not ideal for either party,

0:16:57 > 0:16:58I would have thought.

0:16:58 > 0:17:01However, in these days of trouble on the high street,

0:17:01 > 0:17:03this flat does yield an income.

0:17:03 > 0:17:07Right, so a sitting tenant, conservation area,

0:17:07 > 0:17:12roof problems, access difficulties, lack of parking and a weird layout.

0:17:12 > 0:17:15Does that guide price of £75-80,000

0:17:15 > 0:17:17start to look a little less attractive?

0:17:17 > 0:17:20We asked a local estate agent along for his opinion.

0:17:20 > 0:17:23It is difficult to get planning permission in Lanark at times

0:17:23 > 0:17:25because we're in a conservation area.

0:17:25 > 0:17:27You can only do certain things to the property.

0:17:27 > 0:17:30Although for sale in one lot, I'd like to find out

0:17:30 > 0:17:34what it's worth if it was refurbished and split into the shop and the flat.

0:17:34 > 0:17:37Splitting the property down, we've got the retail outlet down below

0:17:37 > 0:17:40and part of the second floor. That in itself would be worth

0:17:40 > 0:17:43about £60,000 in the current climate.

0:17:43 > 0:17:45The flat above, depending again on the condition of the flat,

0:17:45 > 0:17:48that should go for around about £50-60,000.

0:17:49 > 0:17:54What about rental values for this hot spot on the high street?

0:17:54 > 0:17:57Rental values on the properties, a commercial unit would get

0:17:57 > 0:17:59somewhere in the region of £9-10,000 per annum.

0:17:59 > 0:18:01The flat itself upstairs for residential purposes,

0:18:01 > 0:18:05you're looking at something about £350 per month.

0:18:05 > 0:18:07Well, with Scotland, like everywhere else,

0:18:07 > 0:18:10being affected by the recession and small businesses more so,

0:18:10 > 0:18:16is now the time to invest in a place like this that needs work?

0:18:16 > 0:18:17Well, it's got a good location,

0:18:17 > 0:18:21but that didn't help the business that was here before survive.

0:18:21 > 0:18:23So, I'm not so sure. However,

0:18:23 > 0:18:27I think the flat upstairs, well, that reduces the risk

0:18:27 > 0:18:30and I think, on balance, makes it a good one to go for.

0:18:30 > 0:18:33Let's see who agreed with me at the auction...

0:18:35 > 0:18:36Lot 21.

0:18:36 > 0:18:40This is retail premises on the ground and part of the first floor.

0:18:40 > 0:18:4240, to get me going.

0:18:42 > 0:18:45Thank you, sir, standing up at the back. £40,000.

0:18:45 > 0:18:4842 anywhere? 42,

0:18:48 > 0:18:4944, 44,

0:18:49 > 0:18:5246, 46, 48, 48, 50. 2?

0:18:52 > 0:18:55The bids came thick and fast

0:18:55 > 0:19:00- and we rejoined the auction at £90,000.- 90.

0:19:00 > 0:19:0390, sir? 90. 92. 94.

0:19:03 > 0:19:0696.

0:19:06 > 0:19:08Take one if it helps you, 95.

0:19:08 > 0:19:1095 down the front, 96, sir,

0:19:10 > 0:19:1296, 97,

0:19:12 > 0:19:1498, 99,

0:19:14 > 0:19:16100.

0:19:16 > 0:19:21Shaking his head, it's with you, sir, at 99,000, down at the front.

0:19:21 > 0:19:23100. Oh, he's back in again. At 100.

0:19:23 > 0:19:28101. 101. 102, 102.

0:19:28 > 0:19:31I've got 102 with the gentleman in the pink shirt,

0:19:31 > 0:19:32looking for 103, are we all done?

0:19:32 > 0:19:37At £102,000, going once,

0:19:37 > 0:19:41twice, third and final time, £102,000.

0:19:41 > 0:19:43Gentleman on the aisle...

0:19:43 > 0:19:46The successful purchaser in that long bidding bout was Robert.

0:19:46 > 0:19:50His daughter, Gill, who's hidden from view, was with him.

0:19:50 > 0:19:55They paid £102,000 to add this to their family business premises.

0:19:55 > 0:19:59The two clothing shops they already own on Lanark High Street,

0:19:59 > 0:20:01flank this auction property.

0:20:01 > 0:20:05# We'll go shopping not too far... #

0:20:05 > 0:20:08So, why did the family want another shop?

0:20:08 > 0:20:14I went back to the property, to meet brother and sister Gill and Alistair, to find out.

0:20:14 > 0:20:16- Gill, Alistair, lovely to meet you both.- You too.

0:20:16 > 0:20:18- Congratulations. - Thank you very much.

0:20:18 > 0:20:21Tell me why you wanted to buy this old shop, and the flat?

0:20:21 > 0:20:23Well, we've got both a menswear shop on one side,

0:20:23 > 0:20:25a ladies' wear shop on the other side,

0:20:25 > 0:20:27so it made sense to buy the one in the middle.

0:20:27 > 0:20:29We own property at the back as well,

0:20:29 > 0:20:33- so it felt right that this had to be ours.- You own Lanark, basically!

0:20:33 > 0:20:34Not quite own Lanark,

0:20:34 > 0:20:39but it made sense to go to auction to see what price it went for.

0:20:39 > 0:20:41Tell me more about your shops, how long have they been here?

0:20:41 > 0:20:44We've been in Lanark since 1970.

0:20:44 > 0:20:46But we're actually a Carluke-based company,

0:20:46 > 0:20:50- we've been on the go since the 1870s.- Wow.

0:20:50 > 0:20:52- It was you and was it your father at the auction?- Yeah.

0:20:52 > 0:20:54He was doing the bidding.

0:20:54 > 0:20:57- Very nerve-wracking.- Was it?

0:20:57 > 0:20:58When my dad was doing the bidding,

0:20:58 > 0:21:01I was sitting, kind of looking around.

0:21:01 > 0:21:03And I thought, "We've got to get it, got to get it."

0:21:03 > 0:21:05And got that twitchy way, got to get it.

0:21:05 > 0:21:08So, when the hammer went down, I really felt like, whoo!

0:21:08 > 0:21:13# Let's go shopping... #

0:21:13 > 0:21:15No wonder Gill was excited.

0:21:15 > 0:21:19This is an opportunity for them to secure their business' future.

0:21:19 > 0:21:24It's just lovely that a family-run business is helping to keep the high street going in this town.

0:21:24 > 0:21:28Presumably, one of the big things is you now have control over what goes on here?

0:21:28 > 0:21:31Aye, that's what we felt. With having shops either side,

0:21:31 > 0:21:35it just gives us a degree of certainty, looking into the future, we could then plan out.

0:21:35 > 0:21:39It gives us more options in terms of what type of shop to open here.

0:21:39 > 0:21:41Do we expand from next door?

0:21:41 > 0:21:45It gives us options that perhaps we might not have had before.

0:21:45 > 0:21:47Obviously, these are tough times.

0:21:47 > 0:21:51- Are you confident you can make a success of it?- We certainly hope so.

0:21:51 > 0:21:53Recently, we have closed down a number of shops.

0:21:53 > 0:21:56But what we are trying to do is concentrate where we feel there is a future.

0:21:56 > 0:21:58And Lanark being a market town,

0:21:58 > 0:22:01we feel there's hopefully enough customers here to make a go of it.

0:22:01 > 0:22:04So what we're trying to do is invest for the future.

0:22:04 > 0:22:06Tell me about the plans you've got for the place.

0:22:06 > 0:22:08We have a few options.

0:22:08 > 0:22:12We can knock in the wall to our other property,

0:22:12 > 0:22:14and extend the menswear.

0:22:14 > 0:22:20Or, we can keep it as a separate shop, and maybe do shoes.

0:22:20 > 0:22:25We have been asked quite a lot, both menswear and ladies' wear, if we do shoes.

0:22:25 > 0:22:27- So...- That's one option anyway.

0:22:27 > 0:22:29What are the other options?

0:22:29 > 0:22:31We've got a classic side next door

0:22:31 > 0:22:34so perhaps we could have a more directional shop, maybe for the younger man.

0:22:34 > 0:22:36Perhaps, with the ladies' wear shop next door,

0:22:36 > 0:22:39we could even have a younger ladies side.

0:22:39 > 0:22:41So it could be a store for our younger customer.

0:22:41 > 0:22:43There isn't an option in those options

0:22:43 > 0:22:46for somebody else to come in here and run the shop?

0:22:46 > 0:22:50No, whatever we're going to do, we'll do it ourselves.

0:22:50 > 0:22:53- You're definite about that, aren't you?- Absolutely!

0:22:53 > 0:22:56So, from outside, how long is it going to be before we see

0:22:56 > 0:22:59your name above the door, and a restoration, I presume, outside?

0:22:59 > 0:23:02We've already had a chap looking at the roof,

0:23:02 > 0:23:04there's problems with water coming in just now.

0:23:04 > 0:23:06- That is what's created the damp upstairs?- Yeah.

0:23:06 > 0:23:08There's a problem with the flat roof,

0:23:08 > 0:23:11Scotland's not really the best climate for flat roofs, as you know.

0:23:11 > 0:23:12So it's created its own problems.

0:23:12 > 0:23:15Water finds its way in. But hopefully we'll have that re-roofed,

0:23:15 > 0:23:17and that should sort out the damp problem.

0:23:17 > 0:23:20How much do you think it will cost to get it into a place

0:23:20 > 0:23:21where I can come in here and buy my shoes?

0:23:21 > 0:23:24Well... Through experience...

0:23:24 > 0:23:26We did a conversion five years ago.

0:23:26 > 0:23:28Whatever we set down, it cost twice as much,

0:23:28 > 0:23:30it took twice as long. MARTIN LAUGHS

0:23:30 > 0:23:34So we're not actually anticipating, we've not got a ballpark in mind.

0:23:34 > 0:23:37What we do anticipate is that, with an old property,

0:23:37 > 0:23:40when you start taking things off the wall, you discover more problems.

0:23:40 > 0:23:43We wouldn't like to pinpoint what it will cost, but we know it'll be a lot.

0:23:43 > 0:23:47- Somewhere between £20,000 and £50,000 probably.- Yeah.

0:23:47 > 0:23:50Listen, good luck. I realise this is not just a property,

0:23:50 > 0:23:53- it's a milestone in the business for you.- It is, yeah.

0:23:53 > 0:23:56The very best, we look forward to seeing how you get on.

0:23:56 > 0:23:58- Thank you.- Thank you.

0:23:58 > 0:24:01I'm delighted that this place has fallen into the hands of

0:24:01 > 0:24:06a small, family-run business, as it was all those years ago.

0:24:06 > 0:24:08I hope it doesn't cost twice as much

0:24:08 > 0:24:11and take twice as long to sort it out.

0:24:11 > 0:24:16But then, actually, starting any new business is not easy.

0:24:16 > 0:24:20So, you can find out how they get on, later in the show.

0:24:21 > 0:24:26Coming up, this mews house in Devon exceeds all expectations.

0:24:26 > 0:24:27A bit of a find, this one.

0:24:27 > 0:24:30See, not all auction properties are in a right old state.

0:24:31 > 0:24:34Has Alistair's learning experience

0:24:34 > 0:24:37on this renovation project in Lanark been a fun one?

0:24:37 > 0:24:39There's been parts of this I've really enjoyed.

0:24:39 > 0:24:43I've certainly made plenty of mistakes along the way.

0:24:43 > 0:24:47But first, in Cardiff, could Rhian be set to sell?

0:24:47 > 0:24:51Anything above £140,000 would certainly tempt me.

0:24:57 > 0:25:02Earlier we were in Cardiff, where we met gallery owner Rhian.

0:25:02 > 0:25:05She's bought and done up around 30 properties before,

0:25:05 > 0:25:08so is no stranger to renovation.

0:25:08 > 0:25:13This time, she purchased this maisonette at auction for £97,000.

0:25:13 > 0:25:16Did you desperately want to buy this at auction?

0:25:16 > 0:25:19- Were you happy when the hammer went down?- I was thrilled.

0:25:19 > 0:25:23I'd come back from holiday the day before, so I hadn't actually been inside the property.

0:25:23 > 0:25:26But, I did a bit of research when I was away on holiday.

0:25:26 > 0:25:29I had my computer with me.

0:25:29 > 0:25:32I'd set a ceiling price for the property,

0:25:32 > 0:25:34and I got it just underneath the price.

0:25:34 > 0:25:37So her ceiling price wasn't an issue.

0:25:37 > 0:25:39But the ceilings were.

0:25:39 > 0:25:42Or, should I say, lack of them?

0:25:42 > 0:25:45The property was pretty run-down last time I saw it.

0:25:45 > 0:25:47Now, we're back, 15 weeks later,

0:25:47 > 0:25:51to see if Rhian's taken it from messy, to marvellous.

0:26:20 > 0:26:23Rhian's artistic eye has certainly come into play here.

0:26:23 > 0:26:27Even the front door looks a lot more welcoming.

0:26:27 > 0:26:30I'd been keen to see the layout changed here,

0:26:30 > 0:26:32turning the kitchen into the bedroom,

0:26:32 > 0:26:35and making an open-plan kitchen-living area.

0:26:35 > 0:26:38But Rhian decided to keep the rooms as they were.

0:26:39 > 0:26:41Lucy came up with some great ideas,

0:26:41 > 0:26:44and I did give some thought to her suggestions.

0:26:44 > 0:26:47There were some issues in terms of structural changes.

0:26:47 > 0:26:51And the cost of actually implementing those,

0:26:51 > 0:26:53it was actually quite prohibitive, really.

0:26:53 > 0:26:56As Rhian essentially had to start from scratch,

0:26:56 > 0:26:59changing the rooms around wouldn't have been cheap, I admit.

0:26:59 > 0:27:03And perhaps better suited to someone who planned to live here.

0:27:03 > 0:27:05So, how did her budget pan out?

0:27:05 > 0:27:08I set it at around £15,000.

0:27:08 > 0:27:14The reality is that we did probably spend about £3,000-4,000 more.

0:27:14 > 0:27:16A few thousand over,

0:27:16 > 0:27:18but I think the money has been well spent,

0:27:18 > 0:27:24particularly the £4,500 she spent on this stunning new kitchen.

0:27:25 > 0:27:28I'm really pleased with the way the kitchen has turned out.

0:27:28 > 0:27:33My initial plans were just to put in basic appliances.

0:27:33 > 0:27:36We have put in a washing machine.

0:27:36 > 0:27:39There's an integrated dishwasher.

0:27:39 > 0:27:42And we've also put a fridge-freezer in as well.

0:27:42 > 0:27:45It was a bit of a challenge really, deciding the look for the kitchen.

0:27:45 > 0:27:48Part of that challenge was really about trying to decide

0:27:48 > 0:27:53what type of person would want to buy this property.

0:27:53 > 0:27:55It was important to choose a style

0:27:55 > 0:27:58that would appeal to a wide range of people.

0:27:58 > 0:28:01When you renovate a property with a view to selling or letting,

0:28:01 > 0:28:06it's important to try and make it appeal to as wide an audience as possible.

0:28:06 > 0:28:09It's amazing how many people can be turned off

0:28:09 > 0:28:11just by the colour of a wall.

0:28:11 > 0:28:14I think Rhian has struck a great balance here.

0:28:14 > 0:28:19It's not the standard magnolia you find in newly-decorated properties,

0:28:19 > 0:28:24but feels homely, without feeling like it's already done to somebody else's taste.

0:28:24 > 0:28:27And I'm not the only one who's happy here.

0:28:27 > 0:28:30I am really pleased with the way it's turned out.

0:28:30 > 0:28:32Obviously, along the way,

0:28:32 > 0:28:35I've probably changed my mind on a couple of things.

0:28:35 > 0:28:38But it's essentially how I imagined it would look.

0:28:38 > 0:28:41Rhian had aimed to do the work here in less than six weeks.

0:28:41 > 0:28:45But the job took closer to ten, mostly thanks to some bad weather

0:28:45 > 0:28:49interfering with essential work needed to the roof.

0:28:49 > 0:28:53Now the project is complete, what next?

0:28:53 > 0:28:56Initially, my thoughts had been that we would rent the property out,

0:28:56 > 0:28:59though I will be interested to hear what the agents have got to say

0:28:59 > 0:29:01in terms of valuation.

0:29:01 > 0:29:03To be tempted to sell it,

0:29:03 > 0:29:07I think anything above £140,000 would certainly tempt me.

0:29:07 > 0:29:12The property cost £97,000 at the auction.

0:29:12 > 0:29:15Then about £19,000 has been spent on the work,

0:29:15 > 0:29:20bringing Rhian's total outlay to £116,000.

0:29:20 > 0:29:23She's unsure which way to go with it.

0:29:23 > 0:29:25We've invited two local estate agents round

0:29:25 > 0:29:27to see what they reckon.

0:29:28 > 0:29:31First impressions, coming back, is what a transformation.

0:29:31 > 0:29:34It's got a lovely wow factor as it were,

0:29:34 > 0:29:36and we've got ceilings this time, which is great.

0:29:36 > 0:29:40The presentation is to a high standard.

0:29:40 > 0:29:42Good quality carpets,

0:29:42 > 0:29:46refurbished kitchen and bathroom, again, to high standards.

0:29:46 > 0:29:49The overall feel is, yep, I want this one.

0:29:49 > 0:29:51First impressions of the property are very good.

0:29:51 > 0:29:53It's a light, airy flat.

0:29:53 > 0:29:55A very nice kitchen done to a very high standard.

0:29:55 > 0:29:58They've obviously spent quite a bit of money on it.

0:29:58 > 0:30:01But I think it will pay dividends when it comes to resale.

0:30:01 > 0:30:05If she opts to go with her original plan of renting this out,

0:30:05 > 0:30:07what sort of return could she expect?

0:30:07 > 0:30:09In my opinion, this particular property, rented,

0:30:09 > 0:30:13would achieve £650 per calendar month.

0:30:13 > 0:30:15Rental income on this property would be

0:30:15 > 0:30:18between £650-£700 per calendar month.

0:30:18 > 0:30:22Oh, gosh! Now, that does sound really good.

0:30:22 > 0:30:26Very good indeed. I was expecting more the £600 mark, actually.

0:30:26 > 0:30:31Those estimates would give a rental yield of between 6-7%.

0:30:31 > 0:30:34Rhian did say she might be tempted to sell

0:30:34 > 0:30:38if the property could reach over £140,000.

0:30:38 > 0:30:40The burning question is,

0:30:40 > 0:30:43do these estate agents think it can?

0:30:43 > 0:30:46I would suggest asking £150,000

0:30:46 > 0:30:51with a view of achieving offers over £145,000.

0:30:51 > 0:30:55We'd look to achieve between £145,000-150,000.

0:30:55 > 0:30:57Gosh, that's fantastic.

0:30:57 > 0:31:01I was hoping that it might reach £140,000,

0:31:01 > 0:31:04but to exceed that, that now gives me a bit of a dilemma in terms of

0:31:04 > 0:31:07whether I rent, or whether I actually go for the sale.

0:31:07 > 0:31:09Gosh, that's fantastic.

0:31:09 > 0:31:13With her £116,000 spend on the property,

0:31:13 > 0:31:19she could be looking at a sale profit of between £29,000-34,000,

0:31:19 > 0:31:21minus tax and expenses.

0:31:21 > 0:31:26So, Rhian has a lot to think about, and the potential returns here

0:31:26 > 0:31:29aren't the only thing making her smile about this renovation.

0:31:31 > 0:31:34It's been great. I have done a few before.

0:31:34 > 0:31:38And each one is different, and you learn something new each time.

0:31:38 > 0:31:40So, yeah, I have enjoyed it.

0:31:40 > 0:31:41A few challenges along the way,

0:31:41 > 0:31:44but it hasn't put me off doing another one.

0:31:46 > 0:31:48Welcome to Kennford,

0:31:48 > 0:31:53or as it's nicknamed, the Happy Valley of Kenn, in Devon.

0:31:53 > 0:31:57It offers a very tasty slice of country life,

0:31:57 > 0:31:58with gorgeous fields,

0:31:58 > 0:32:00local pubs, shops,

0:32:00 > 0:32:03and some beautiful thatched cottages.

0:32:03 > 0:32:07Plus, if you want country life, with a slice of city on the side,

0:32:07 > 0:32:10it's not far from the city of Exeter.

0:32:10 > 0:32:12It's all pretty idyllic,

0:32:12 > 0:32:16and would be even more so if not for today's weather.

0:32:16 > 0:32:18It would take more than rain

0:32:18 > 0:32:20to dampen my spirits about this place, though.

0:32:21 > 0:32:24It's a bit of a rainy day, but ten minutes outside Exeter,

0:32:24 > 0:32:28and you're in real Devon countryside.

0:32:28 > 0:32:29And very lovely it is too.

0:32:29 > 0:32:32Kennford has got pretty much everything you need.

0:32:32 > 0:32:35A pub, a school, a farm shop, there's even an ice cream parlour

0:32:35 > 0:32:38but maybe that's just on my list of must-haves!

0:32:38 > 0:32:41The house itself, tucked away in this little mews,

0:32:41 > 0:32:44two bedrooms, at a guide price of £125,000.

0:32:44 > 0:32:45Let's take a look.

0:32:47 > 0:32:49- HE EXHALES - Into the dry.

0:32:49 > 0:32:51Let's hope that continues throughout the house,

0:32:51 > 0:32:52no damp, always a good thing.

0:32:52 > 0:32:54Other than the wet on the floor from me.

0:32:54 > 0:32:59Erm, but, straightaway, a little interesting entrance area,

0:32:59 > 0:33:01especially because you've got this sort of serving hatch.

0:33:01 > 0:33:07Now, clearly, this is to throw light into this part of this ground floor.

0:33:07 > 0:33:09It's kind of unusual, isn't it?

0:33:09 > 0:33:13Er... Towel, and a Devon cream tea, please!

0:33:13 > 0:33:15But...

0:33:15 > 0:33:16moving into this side.

0:33:16 > 0:33:19I'm beginning to think this is actually in quite good condition.

0:33:19 > 0:33:21The kitchen, not exactly brand new,

0:33:21 > 0:33:23but it's a nice space, pretty well-equipped.

0:33:23 > 0:33:26White goods have been left, which is good.

0:33:26 > 0:33:28And it's pretty serviceable as it is.

0:33:28 > 0:33:31A bit of space there for your kitchen table.

0:33:31 > 0:33:36Then, back through here, into the main living area.

0:33:36 > 0:33:41You've got this open-plan design, with the kitchen there,

0:33:41 > 0:33:43then this large living area.

0:33:43 > 0:33:44Nice to have the open fire.

0:33:44 > 0:33:47In terms of this design, you've got this corridor

0:33:47 > 0:33:50which will be naturally created from the door,

0:33:50 > 0:33:53into and up through the bedrooms.

0:33:53 > 0:33:56That gives you a problem when it comes to furniture.

0:33:56 > 0:33:58So, it's not ideal.

0:33:58 > 0:34:01But, at least the fact it's open-plan

0:34:01 > 0:34:03does give it a really nice, open feel.

0:34:03 > 0:34:06So, yeah, you certainly can't complain about the condition.

0:34:07 > 0:34:10Upstairs, you can't complain about the character either,

0:34:10 > 0:34:13with all these lovely beams.

0:34:13 > 0:34:15There's a decent-sized double bedroom,

0:34:15 > 0:34:19with some, love them or loathe them, built-in wardrobes.

0:34:19 > 0:34:22Unfortunately, there's a tiny single at the back,

0:34:22 > 0:34:25which I think is impossibly small, especially if, call me crazy,

0:34:25 > 0:34:28you want to fit a bed in the bedroom.

0:34:28 > 0:34:31# Size matters Size matters... #

0:34:39 > 0:34:42However, the landing is probably bigger than it needs to be,

0:34:42 > 0:34:45so there's some potential for rejigging here.

0:34:45 > 0:34:50Or, I've got another idea to address size issues up here.

0:34:50 > 0:34:53So that second bedroom, a real disappointment then.

0:34:53 > 0:34:55What could you possibly do?

0:34:55 > 0:35:00The bathroom, conversely, is actually a really nice size.

0:35:00 > 0:35:01And I think you could

0:35:01 > 0:35:04quite legitimately steal a little bit of space from in here.

0:35:04 > 0:35:06This is only a stud partition wall.

0:35:06 > 0:35:08So that could come out.

0:35:08 > 0:35:11Move it even just a few feet, maybe half a metre this way.

0:35:11 > 0:35:14You'd still have a half-decent-sized bathroom,

0:35:14 > 0:35:16get a bath in there instead of a walk-in shower.

0:35:16 > 0:35:19Up here, there's also a very large cupboard

0:35:19 > 0:35:21with the water storage tank there.

0:35:21 > 0:35:24Maybe consider putting a combination boiler in.

0:35:24 > 0:35:26At the moment, it's just got storage radiators,

0:35:26 > 0:35:29and obviously an immersion heater to create your water.

0:35:29 > 0:35:31That would then free up this space.

0:35:31 > 0:35:33So your bathroom would still be a decent size.

0:35:33 > 0:35:36And you would increase the size of that second bedroom. Job done!

0:35:36 > 0:35:41So that's a couple of my favourite options for upstairs.

0:35:41 > 0:35:44Although the proportions do suggest a limited market

0:35:44 > 0:35:46for this little mews house.

0:35:47 > 0:35:51Downside number two, the only outside space is communal.

0:35:51 > 0:35:55But none of that means it doesn't have investment potential.

0:35:55 > 0:35:58One thing you might want to consider for this place

0:35:58 > 0:36:01is renting it out for holiday lets. You're at the bottom of the M5,

0:36:01 > 0:36:02so you've got good transport links.

0:36:02 > 0:36:05A nice little village surrounded by countryside, that's good.

0:36:05 > 0:36:06You're not on the coast,

0:36:06 > 0:36:10so you won't get the same rental figures you would on the coast.

0:36:10 > 0:36:15But still, £550 a week or so, something worth considering.

0:36:18 > 0:36:21It's always a good idea to mull over every option.

0:36:21 > 0:36:25We asked a local estate agent what she thought of this country pad,

0:36:25 > 0:36:28guided at £125,000.

0:36:30 > 0:36:34My first impression of the property was probably, a little bit rundown,

0:36:34 > 0:36:35needs a bit of work doing to it.

0:36:35 > 0:36:37But I think it's got quite good space here.

0:36:37 > 0:36:39You've got a good-sized bathroom.

0:36:39 > 0:36:42The bedrooms are probably a little bit on the small side.

0:36:42 > 0:36:45But you've got a good living area downstairs.

0:36:45 > 0:36:48Could it appeal to holidaymakers?

0:36:48 > 0:36:51I think it could work as a holiday let.

0:36:51 > 0:36:56It's a really good location. A lot of people aspire to be in this area.

0:36:56 > 0:36:58So yeah, it would work definitely.

0:36:58 > 0:37:02What about the sales and rental values?

0:37:03 > 0:37:06If you were to do it up and bring it into the 21st century,

0:37:06 > 0:37:12probably be worth between £140,000-150,000.

0:37:12 > 0:37:16If you were to rent it out, it would achieve £800 per calendar month.

0:37:18 > 0:37:20Well, a bit of a find this one.

0:37:20 > 0:37:23See, not all auction properties are in a right old state.

0:37:23 > 0:37:25Pretty much move into this one as it is.

0:37:25 > 0:37:29As a rental, as a place to live or for short-term holiday lets.

0:37:29 > 0:37:32Let's see who fancied it when it went under the hammer.

0:37:33 > 0:37:36Lot 303, ladies and gentlemen.

0:37:36 > 0:37:39Anyone like to start at guide, at 125?

0:37:39 > 0:37:41125, thank you.

0:37:41 > 0:37:43127, can we say?

0:37:43 > 0:37:45125, 127, now?

0:37:45 > 0:37:48127. 129?

0:37:48 > 0:37:50127 here. 129?

0:37:50 > 0:37:52129. 130?

0:37:53 > 0:37:56130 here. 131?

0:37:56 > 0:37:58Yeah, 131. 132?

0:37:58 > 0:38:00One more? 132?

0:38:00 > 0:38:03I'm going to call that for the first time, then.

0:38:03 > 0:38:05£131,000.

0:38:05 > 0:38:07We're very close, I can't sell it there.

0:38:07 > 0:38:09Perhaps you'd like to have a quick chat with us afterwards,

0:38:09 > 0:38:11or now if you wish?

0:38:12 > 0:38:15Well, this is a little unusual.

0:38:15 > 0:38:18The reserve wasn't met, so it didn't sell in the room.

0:38:18 > 0:38:21However, the property was purchased afterwards by one of the bidders,

0:38:21 > 0:38:27Robert, who bought the mews house for £130,000, with wife Sarah.

0:38:27 > 0:38:30I met her and daughter Vicky, who was also at the auction,

0:38:30 > 0:38:33to get the full story.

0:38:34 > 0:38:39- Vicky, Sarah, great to meet you both. Congratulations.- Thank you.

0:38:39 > 0:38:43Tell me what happened there then, what happened after the auction?

0:38:43 > 0:38:48Well, basically, we went as high as we could on our bidding up to 130.

0:38:48 > 0:38:51But it didn't meet the reserve.

0:38:51 > 0:38:53So, afterwards, they called us back into the back room,

0:38:53 > 0:38:55we came to an agreement

0:38:55 > 0:38:58and managed to get it for our highest bid basically, so 130.

0:38:58 > 0:39:00- So you got it for what you would have bid...?- Yeah.

0:39:00 > 0:39:04- That was a bit of unnecessary messing around!- Yes!

0:39:04 > 0:39:06But quite a good result.

0:39:06 > 0:39:08Yeah, definitely, yes. Very happy, yeah.

0:39:08 > 0:39:10Brilliant. So tell me why you wanted to buy it.

0:39:10 > 0:39:13- It was basically you and dad buying it.- Yes.

0:39:13 > 0:39:16It's local to us, we live just down the road.

0:39:16 > 0:39:18We thought we could rent it out

0:39:18 > 0:39:20- and have it as an investment for the future.- OK.

0:39:20 > 0:39:23What's your involvement in the whole thing, Vicky?

0:39:23 > 0:39:28Really, just here to help out really with decorating it, that sort of thing.

0:39:28 > 0:39:32I only work part-time at the moment, so I'm around to help out, really.

0:39:32 > 0:39:34You were interested in the auction?

0:39:34 > 0:39:36Yes, I've never been to an auction before,

0:39:36 > 0:39:38so I thought, it's a bit different.

0:39:38 > 0:39:40Keep her dad under control!

0:39:40 > 0:39:42Definitely, yeah, stop him going over the budget.

0:39:42 > 0:39:45At the auction, there was a little boy with you, your little boy?

0:39:45 > 0:39:48- Yes, my little boy, yeah. - What's his name?- He's Jack.

0:39:48 > 0:39:49He was getting very excited.

0:39:49 > 0:39:52He was, he was actually bidding for us at one point, I think.

0:39:52 > 0:39:56Luckily, the auctioneer didn't take his bid, thankfully!

0:39:56 > 0:39:58But yeah, he was getting very involved.

0:39:58 > 0:40:00Will you get him involved in some of the restoration?

0:40:00 > 0:40:03- I'm hoping to get him to do some painting.- Wow, how old is he?

0:40:03 > 0:40:07He's a year and a half. So... It might be quite messy!

0:40:14 > 0:40:20I'm all for getting into property at a young age but one and a half might be pushing it.

0:40:20 > 0:40:25Although Jack seems to be enjoying investigating this place.

0:40:25 > 0:40:30Robert and Sarah have purchased this as their first foray into the buy-to-let game.

0:40:30 > 0:40:34Apart from being local to the area, what was it about the house that you liked?

0:40:34 > 0:40:40It's a really sweet cottage and we love the beams and the way it has been done.

0:40:40 > 0:40:44- And what tempted you into the world of buy-to-let?- That's my husband.

0:40:44 > 0:40:49He is always looking for something to do. He retired just over a year ago.

0:40:49 > 0:40:53I think it's a project that he's keen to do.

0:40:53 > 0:40:58- What are you going to do to the place? What's the plan? - Decorate throughout.

0:40:58 > 0:41:03Everything needs painting, the kitchen, the cabinets. We're hoping to just do the doors.

0:41:03 > 0:41:09We need to do something with the bathroom. There's a couple of things upstairs we want to sort out.

0:41:09 > 0:41:15- There's built-in cupboards that we'll probably take out.- Right. - Apart from that, just decorating.

0:41:15 > 0:41:18The second bedroom is quite small

0:41:18 > 0:41:24and it looks to me like somebody stole a bit of room to increase the size of the bathroom.

0:41:24 > 0:41:26Is that something you're going to change?

0:41:26 > 0:41:32Probably not. We want to spend as little as possible on work.

0:41:32 > 0:41:36We just have to hope that it will be all right as a study or something like that.

0:41:36 > 0:41:41I can't help thinking that they may be missing a trick in the rental market

0:41:41 > 0:41:43if the second bedroom is only to be a study.

0:41:43 > 0:41:49But the work required here is minimal so they can maximise their potential profit

0:41:49 > 0:41:53by keeping costs as low as they can.

0:41:53 > 0:41:56Although they'll do most of the cosmetic work themselves,

0:41:56 > 0:42:00they'll bring in a plumber and electrician where necessary.

0:42:00 > 0:42:06They aim to get everything done for £4,000 then let it out as soon as possible.

0:42:06 > 0:42:09Robert needs to get cracking.

0:42:09 > 0:42:15- My husband's retired so he's on a tight schedule, a month.- A month?

0:42:15 > 0:42:20- Is this the first of many or what? - Who knows?

0:42:20 > 0:42:24Hopefully not, but knowing her dad, it might be!

0:42:24 > 0:42:27- Depends how successful this one is. - Congratulations. Good luck with it.

0:42:27 > 0:42:32- We look forward to seeing how you get on.- Thank you.

0:42:32 > 0:42:37It looks like this could be the start of a new family business for three generations,

0:42:37 > 0:42:42although something tells me little Jack may be better at painting himself rather than the walls.

0:42:42 > 0:42:46You can find out how it all turns out later in the show.

0:42:49 > 0:42:55Transforming a property from a worn out shell into a home can been rewarding and profitable.

0:42:55 > 0:42:59Did everything go to plan for our buyers today?

0:42:59 > 0:43:00Let's go back and find out.

0:43:04 > 0:43:06We're back in Lanark in Scotland.

0:43:06 > 0:43:12Alistair and his sister, Gill, are the sixth generation in this family retail business.

0:43:12 > 0:43:16Their father bought the shop that separated their ladies'

0:43:16 > 0:43:18from their gents' wear on the town's high street.

0:43:18 > 0:43:22This three-storey property consisted of shop space

0:43:22 > 0:43:26and storage on the ground floor, then things got messy.

0:43:26 > 0:43:30The building had a maisonette flat with first-floor living quarters

0:43:30 > 0:43:32and bedrooms on the top floor.

0:43:32 > 0:43:37The front of the first floor was storage for the shop below.

0:43:37 > 0:43:41The building was in poor condition and in a conservation area

0:43:41 > 0:43:45so the new owners were prepared for the worst, budget-wise.

0:43:45 > 0:43:49How much do you think it'll cost to get it into a place where I can come in and buy shoes?

0:43:49 > 0:43:54With an old property, when you start taking things off the wall, you discover more problems.

0:43:54 > 0:44:01Nothing will be straightforward so we wouldn't like to pinpoint how much it will cost.

0:44:01 > 0:44:03- So, somewhere between £20,000-50,000?- Aye.

0:44:03 > 0:44:09The family bought the property over three years ago for £102,000.

0:44:09 > 0:44:17We've come back to see if it is high hopes on the high street or heaps of heartache for the family.

0:44:18 > 0:44:24I might not be about to try on any shoes just yet

0:44:24 > 0:44:28but they have managed to put their stamp on it.

0:44:28 > 0:44:31As you can see, it is a work in progress.

0:44:31 > 0:44:33So far, we have plastered the walls.

0:44:33 > 0:44:36We've kept the original features of the cornicing.

0:44:36 > 0:44:40It's an old building and we wanted to reflect that character. We are going to replace the windows

0:44:40 > 0:44:44and through the back we've created a store.

0:44:44 > 0:44:49The back area has been extended into the old pub, which the family also owns.

0:44:49 > 0:44:52More on that later.

0:44:52 > 0:44:55Although there's been minimal work to the shop,

0:44:55 > 0:44:57their efforts have gone into the flat above.

0:44:57 > 0:45:02That bay windowed room is now the living room of a smart new maisonette flat.

0:45:02 > 0:45:05The storage room is now a smart kitchen.

0:45:07 > 0:45:14The new flat has the upstairs bedrooms that have been switched from the original flat.

0:45:14 > 0:45:16We couldn't get access when we were first here

0:45:16 > 0:45:21but the tenants have moved out and the rooms in the flat have been given a new lease of life.

0:45:21 > 0:45:26There's a master bedroom with a fabulous view of the high street from the balcony.

0:45:26 > 0:45:31A good-sized second bedroom and a bathroom.

0:45:31 > 0:45:34But getting to this stage has taken time and money.

0:45:34 > 0:45:38At the front, we had a flat roof and water had got in over the years

0:45:38 > 0:45:42so we took everything back to the bare bones, re-roofed it

0:45:42 > 0:45:46and the result is we have had to replace a lot of wood internally.

0:45:46 > 0:45:52We've worked from the top to the bottom, joists replaced, everything stripped back to the bare stone.

0:45:52 > 0:45:53It's been a big job.

0:45:53 > 0:45:59One of the most awkward things about this place was the lack of a proper entrance.

0:45:59 > 0:46:05This has been solved by going around the side into the close and making a door there.

0:46:05 > 0:46:11The business already owns this huge building which had originally been a pub.

0:46:11 > 0:46:16The back of the auction property will now extend across into the pub,

0:46:16 > 0:46:20creating a second two-bedroom flat with Velux windows to the rear.

0:46:20 > 0:46:26The pub building will also provide much-needed storage space for the ground floor shop.

0:46:26 > 0:46:31This project has become so big, I'd almost forgotten about that.

0:46:31 > 0:46:36We expect the shop to be ready in the next couple of months. We've got the shopfront to replace.

0:46:36 > 0:46:40We've got one or two things still to do with the storeroom at the back.

0:46:40 > 0:46:44It's going to be a while yet before anyone's stepping out in new stilettos here.

0:46:44 > 0:46:49And don't forget, we are three years on.

0:46:49 > 0:46:53Developing two flats as well as business and storage space,

0:46:53 > 0:46:57whilst also running a business, is a huge undertaking.

0:46:57 > 0:47:02Initially, the budget was vague, the timescale even more so.

0:47:02 > 0:47:06What has that meant for the pounds and pence on this project?

0:47:06 > 0:47:10When asked how much it was going to take, I thought at the time

0:47:10 > 0:47:13it was going to cost twice as much and take twice as long.

0:47:13 > 0:47:17Three years later, we have spent in the region of about £128,000.

0:47:17 > 0:47:22The family bought the property for £102,000.

0:47:22 > 0:47:29Add it to the £128,000 for renovation so far, that makes an outlay £230,000.

0:47:29 > 0:47:35Valuing an unfinished shop in the current retail market is not an exact science.

0:47:35 > 0:47:39However, a local commercial property agent valued the shop

0:47:39 > 0:47:44when renovations are done at £9,000 per annum for rental.

0:47:44 > 0:47:51And at offers over £90,000 if it was sold. So, what about those flats?

0:47:51 > 0:47:56We asked two local estate agents to tell us what they make of them.

0:47:56 > 0:47:59The property has obviously been a substantial building

0:47:59 > 0:48:03when they purchased it and they've done well to have the current layout

0:48:03 > 0:48:05as such that they can get

0:48:05 > 0:48:09two two-bedroom flats out of what was originally one large two-bedroom flat.

0:48:09 > 0:48:12They have done a really good job with the refurbishment,

0:48:12 > 0:48:13split over two levels now.

0:48:13 > 0:48:16Two double bedrooms upstairs and this lovely big living area.

0:48:16 > 0:48:21Nice modern kitchen and bathroom. It's a good job, high spec, lovely finish.

0:48:21 > 0:48:26Let's hear about rental returns.

0:48:26 > 0:48:30I would expect this property to get about £450 per calendar month.

0:48:30 > 0:48:34In the current rental market, I'd expect a two-bedroom property in this location

0:48:34 > 0:48:41of this size and nature to command about £400-425 per calendar month.

0:48:41 > 0:48:43Given the standard of finish in this front flat,

0:48:43 > 0:48:49I would expect this property to rent nearer the £450 per calendar month.

0:48:49 > 0:48:53I certainly feel the front flat is a more attractive flat.

0:48:53 > 0:48:58The rear flat is going to be very nice but I can get more of a premium price

0:48:58 > 0:49:01here at the front so I would expect more than 400, about 450.

0:49:01 > 0:49:06What could this front maisonette flat sell for?

0:49:06 > 0:49:10I would expect this flat to value somewhere around £100,000.

0:49:10 > 0:49:14I'm of the opinion that the front flat, that we're in at the moment,

0:49:14 > 0:49:17given its standard of finish and layout,

0:49:17 > 0:49:22would command a price of £95,000-100,000.

0:49:22 > 0:49:25The rear flat is not finished yet so it is hard to put a value on it.

0:49:25 > 0:49:29I'm pleased with this front flat. I believe we'll get more than the valuation suggests.

0:49:29 > 0:49:35In fact, Alistair likes the flat so much, he plans to move in.

0:49:35 > 0:49:42Both estate agents think the back flat, once completed, could be worth up to £100,000.

0:49:42 > 0:49:48With a £90,000 value on the shop and two flats valued at £100,000,

0:49:48 > 0:49:55that outlay of £230,000 leaves them ahead by £60,000.

0:49:55 > 0:49:57There has been parts of this that I've enjoyed.

0:49:57 > 0:50:02I've made plenty of mistakes along the way but it hasn't put me off.

0:50:02 > 0:50:06We've got one or two projects lined up for the future.

0:50:08 > 0:50:10Kennford's calling.

0:50:10 > 0:50:14It is here we previously met Vicky and her mother Sarah,

0:50:14 > 0:50:20who, along with husband Robert, purchased this cute mews house for £130,000.

0:50:20 > 0:50:26The renovation job was going to be one which every member of the family could get involved with.

0:50:29 > 0:50:32- At the auction, there was a boy. Was that your little boy?- Yes.

0:50:32 > 0:50:36- What's his name?- He's Jack.- He was getting very excited, wasn't he?

0:50:36 > 0:50:39He was, he was actually bidding for us at one point.

0:50:39 > 0:50:42Luckily, the auctioneer didn't take his bid!

0:50:42 > 0:50:46- Yes, he was getting involved. - Are you going to get him involved in some of the restoration?

0:50:46 > 0:50:49- I'm hoping he can do some painting. - Wow! How old is he?

0:50:49 > 0:50:54He is a year and a half. It might be quite messy!

0:50:55 > 0:51:01Let's just hope there's no mess here just over five weeks later.

0:51:15 > 0:51:18Quite the opposite, in fact.

0:51:18 > 0:51:22The mews house wasn't in a bad way when Sarah and Robert purchased it,

0:51:22 > 0:51:26but it has benefited from some sprucing up throughout.

0:51:26 > 0:51:30Most noticeably in the kitchen.

0:51:35 > 0:51:40The main thing we've done in the kitchen is changed the doors on the unit.

0:51:40 > 0:51:43The carcasses were fine, it just wanted the doors changing.

0:51:43 > 0:51:48They were tatty ones with a brown handle at the bottom. We've changed all these.

0:51:48 > 0:51:52A few problems, because something like this is a three door unit now,

0:51:52 > 0:51:53that was a four drawer unit.

0:51:53 > 0:51:57We had to juggle where the shelves go for the runners.

0:51:57 > 0:52:02It has come out very well. There was a four-inch gap down here.

0:52:02 > 0:52:06We've built a little wine rack, which we are very pleased with,

0:52:06 > 0:52:09with a drawer for your bottle openers and straws.

0:52:09 > 0:52:12It has filled that gap so you don't get food going down there.

0:52:12 > 0:52:17We are very pleased with the kitchen. It's a lot brighter, airier. It has come up well.

0:52:17 > 0:52:20The kitchen and the whole house, we are very pleased with.

0:52:20 > 0:52:22As well they should be.

0:52:22 > 0:52:27Whilst I would have liked them to extend that tiny second bedroom,

0:52:27 > 0:52:32choosing not to has really helped keep them under budget.

0:52:32 > 0:52:36£4,000 was what we had. It has come in at £2,400.

0:52:36 > 0:52:39Maybe a little bit more because we are still waiting

0:52:39 > 0:52:43for some of the invoices from the workers, the electrician and the plumber.

0:52:43 > 0:52:47We reckon about £2,400, which is great.

0:52:47 > 0:52:51We found 20p under one of the storage heaters

0:52:51 > 0:52:53so, that's gone a little way towards it as well!

0:52:53 > 0:52:57You know what they say, every little helps.

0:52:57 > 0:53:03- How did their little helper get on? - Jack wasn't particularly helpful.

0:53:03 > 0:53:07On one of the days, he helped to clean a little bit.

0:53:07 > 0:53:11But he was more a source of entertainment throughout.

0:53:18 > 0:53:22There's a lot to be said for being kept entertained on the job,

0:53:22 > 0:53:28although the plan was for most of the graft to be done by Robert.

0:53:28 > 0:53:32I've done the bulk of it, Victoria has done a little bit of painting.

0:53:32 > 0:53:35She's helped by releasing me by doing work at home,

0:53:35 > 0:53:38washing-up and that sort of thing. Sarah has done a lot.

0:53:38 > 0:53:43She did an awful lot of cleaning yesterday, she was here until 10.

0:53:43 > 0:53:47She has also helped with choosing the kitchen doors and other bits and pieces.

0:53:47 > 0:53:53So everybody has played their part in getting this place ready to rent out.

0:53:53 > 0:53:59They've done it in five weeks, just one week over their planned timescale.

0:53:59 > 0:54:05With the £130,000 they paid for the property, added to the £2,400 spent on the work,

0:54:05 > 0:54:10the total outlay comes to £132,400.

0:54:12 > 0:54:17We invited two local property experts to see

0:54:17 > 0:54:22the new and improved mews house and find out if they were impressed.

0:54:22 > 0:54:27My first impressions are that it has been renovated in a tasteful and attractive manner.

0:54:27 > 0:54:30The size of the second bedroom is going to restrict the market.

0:54:30 > 0:54:32If they pinched a little bit from the bathroom,

0:54:32 > 0:54:34it could've made a difference.

0:54:34 > 0:54:38In my opinion, I might have just been tempted to steal a bit from the bathroom.

0:54:38 > 0:54:43It is a good-sized little cottage. It is nice and light.

0:54:43 > 0:54:47In the kitchen, I think it is a good size.

0:54:47 > 0:54:50It's nice that it has got a dining area.

0:54:50 > 0:54:55It's got new worktops and doors. It has got a nice outlook overlooking the communal gardens.

0:54:55 > 0:55:00If Robert and Sarah decided to sell, what would these estate agents suggest they market it at?

0:55:00 > 0:55:03If we were putting the property on the market in the current climate,

0:55:03 > 0:55:06we you would be looking to ask a figure in the region of £150,000.

0:55:06 > 0:55:10In the current market, I would expect it to achieve

0:55:10 > 0:55:12in the region of £135,000-140,000.

0:55:12 > 0:55:15In some respects it's immaterial if we're not going to sell,

0:55:15 > 0:55:21- but it's good to know that it's worth more than we bought and put into it.- Definitely.

0:55:21 > 0:55:23Yes, we are pleased with that.

0:55:23 > 0:55:30The pre-tax profit here would be between £2,600-17,600

0:55:30 > 0:55:33minus the usual tax and expenses.

0:55:33 > 0:55:38The plan for the property was always to let it.

0:55:38 > 0:55:43Robert and Sarah already have tenants lined up, who move in tomorrow.

0:55:43 > 0:55:47How much do the estate agents think they could charge in rent?

0:55:47 > 0:55:50If we're looking to rent the property in the current climate,

0:55:50 > 0:55:54we'd be looking at something around £650-700 per calendar month on an unfurnished basis.

0:55:54 > 0:55:59For rental, I'd expect it to achieve between £650 and £700 per calendar month.

0:55:59 > 0:56:05650-700 is brilliant. The tenant's in that ballpark figure.

0:56:05 > 0:56:08- That's about the ballpark figure we've got for it.- Brilliant.

0:56:08 > 0:56:11Based on the estate agents' suggestions,

0:56:11 > 0:56:16the ballpark rental yield would be around 6%, which is great.

0:56:16 > 0:56:22I think Robert picked up an ideal property for his first renovation job.

0:56:22 > 0:56:26It's lovely that it has been such a team effort by the whole family.

0:56:26 > 0:56:29We work together really well.

0:56:29 > 0:56:34Different attributes and we all pulled together and it came in and within time.

0:56:34 > 0:56:40- If you've got a tenant lined up, you need to get it completed by that time.- Yes.

0:56:42 > 0:56:46Whether you're a seasoned professional or a property novice,

0:56:46 > 0:56:48there are always lessons to be learnt.

0:56:48 > 0:56:52Join us next time for more auction action here on Homes Under The Hammer.

0:56:52 > 0:56:54- We'll see you then.- Goodbye. - Goodbye.

0:57:16 > 0:57:18Subtitles by Red Bee Media Ltd