0:00:02 > 0:00:04Hello. Have you ever thought about changing career
0:00:04 > 0:00:07and having a go at something a bit different?
0:00:07 > 0:00:09Property developing appeals to many people
0:00:09 > 0:00:12especially if you're looking for a change of lifestyle.
0:00:12 > 0:00:15But it is not always easy to get going.
0:00:15 > 0:00:20One way to get yourself off to a flying start is to visit your local property auction.
0:00:45 > 0:00:50Well, the lure of the auction room is very strong. What should you spend your money on?
0:00:50 > 0:00:52You may set your heart on a property
0:00:52 > 0:00:54only to find out that somebody outbids you.
0:00:54 > 0:00:58It's best to do your research on several properties to keep your options open.
0:00:58 > 0:01:03Let's see what grabbed the attention of our buyers on today's show.
0:01:03 > 0:01:09In South London, I am perplexed by a large house built for tiny people.
0:01:09 > 0:01:13This head height thing. Wow! What is going on here?
0:01:15 > 0:01:19Beside the seaside in Blackpool, I am beside myself with excitement.
0:01:19 > 0:01:23It doesn't feel at all like a flat. It feels like a grand house.
0:01:24 > 0:01:29And in Amble on the Northumberland coast, I can see clearly now.
0:01:29 > 0:01:34So, basically, this wall has to go.
0:01:34 > 0:01:37All of these properties have been sold at auctions
0:01:37 > 0:01:38and we'll find out who bought them
0:01:38 > 0:01:41and what they paid for them when they went under the hammer.
0:01:41 > 0:01:43Lady on the second row.
0:01:45 > 0:01:49MUSIC PLAYS
0:01:58 > 0:02:05Unlikely as it may seem, this wide open space is in South East London, in Camberwell.
0:02:05 > 0:02:08An area on the verge of gentrification.
0:02:08 > 0:02:12It's surprisingly close to the city centre, yet has lovely parks and greenery
0:02:12 > 0:02:17as in Burgess Park which is undergoing a £6 million regeneration.
0:02:17 > 0:02:21All good news for developers or someone looking for a family home.
0:02:21 > 0:02:24So, the park is undergoing a transformation.
0:02:24 > 0:02:29How far do you have to go to find a property that's in need of much the same?
0:02:29 > 0:02:34Not very far at all. The property I'm here to see is just here.
0:02:34 > 0:02:40It's a grand Georgian semi-detached with a guide price of £330,000.
0:02:40 > 0:02:44Straight away we know no matter what it's like inside, it's got great views.
0:02:44 > 0:02:46Great views but not a great entrance.
0:02:46 > 0:02:52These semi-detached Georgian properties have their main door upstairs on the side.
0:02:52 > 0:02:56In this case, it's blocked off so I'm heading for the current front door
0:02:56 > 0:03:01which is in a rather dingy looking ground floor extension.
0:03:01 > 0:03:06The house is spread over three floors and it has a Grade II listing.
0:03:06 > 0:03:10It has a characterful but tatty facade.
0:03:10 > 0:03:14On the face of it, this seems like a lot of London property for £330,000.
0:03:14 > 0:03:19Bit of a shame for such a grand house that you have to go and access it
0:03:19 > 0:03:25through this downstairs and fairly unpleasant rear entrance.
0:03:25 > 0:03:29It doesn't get any better when you come in. This is the kitchen.
0:03:29 > 0:03:34Really, it is! It's just horrible. Very low ceilings.
0:03:34 > 0:03:36Got a strange roof-like thing going on there.
0:03:36 > 0:03:40Down into the living room and this head height thing.
0:03:40 > 0:03:42Wow! What is going on here?
0:03:42 > 0:03:47It must be about two inches above my head. About six foot.
0:03:47 > 0:03:52Not good at all. It continues all the way over this ground floor.
0:03:52 > 0:03:56The good news is there is a reasonable amount of floor space.
0:03:56 > 0:04:00I wonder if there's a way of raising this ceiling, then it would give a much better feel.
0:04:00 > 0:04:05Also maybe there's some playing around with the layout you could do.
0:04:05 > 0:04:08One of the keys to that is what we found in the garden.
0:04:10 > 0:04:15What have we got? We've got this strange corrugated roof lean-to affair
0:04:15 > 0:04:17which is ready for demolition.
0:04:17 > 0:04:21The good news, this fairly flat area which has got a concrete base
0:04:21 > 0:04:25which would be the ideal spot for an extension.
0:04:25 > 0:04:30You could extend the kitchen and the living room to create something maybe with a glass roof,
0:04:30 > 0:04:32really make the most of the location.
0:04:32 > 0:04:34That may well be within permitted development rules
0:04:34 > 0:04:40however, the house is listed and therefore you'll have to go through listed building consent
0:04:40 > 0:04:42before you do anything.
0:04:42 > 0:04:46The downside could be that it's going to eat away into the garden.
0:04:46 > 0:04:50Actually, that's not going to be too much of an issue.
0:04:50 > 0:04:53It's ginormous!
0:04:53 > 0:04:55Really!
0:04:57 > 0:05:02I mean, can you see how far it is? Fantastic space.
0:05:02 > 0:05:07For a property in a location like this, the garden?
0:05:07 > 0:05:10Perfection.
0:05:10 > 0:05:13MUSIC PLAYS
0:05:22 > 0:05:25Open spaces at the front of the house
0:05:25 > 0:05:29and now this amazing park size back garden. It's 100 feet long.
0:05:29 > 0:05:33It's a dream to find a garden like this in London
0:05:33 > 0:05:36especially with real fruit included.
0:05:36 > 0:05:41The lower ground floor is huge and has the only loo
0:05:41 > 0:05:44but this space could be made to feel light and airy.
0:05:44 > 0:05:47What more could you want? What about the rest of the house?
0:05:47 > 0:05:51Another two floors to go. First, the upper ground floor.
0:05:51 > 0:05:58Upstairs I'm delighted to say, finally we get a bit of head height
0:05:58 > 0:06:02and also some hints to the house's Georgian past.
0:06:02 > 0:06:07This staircase here, classic Georgian design.
0:06:07 > 0:06:10The space starts to get really exciting.
0:06:10 > 0:06:16You've got a big front bedroom. That is the original front door.
0:06:16 > 0:06:18The original front doors themselves are here.
0:06:18 > 0:06:23I'm sure the listing people would want you to put that kind of thing back
0:06:23 > 0:06:27to recreate the grand entrance this place once had.
0:06:27 > 0:06:29Both these rooms are being used as bedrooms
0:06:29 > 0:06:33but they would have been impressive reception rooms when the house was built.
0:06:33 > 0:06:36On the top floor of this three storey house,
0:06:36 > 0:06:40there are two bedrooms, one at the front and one at the back.
0:06:40 > 0:06:46Both are packed with period details lurking under dingy decoration and hardboard.
0:06:46 > 0:06:49Squeezed in between them is the only bathroom and there is no loo there.
0:06:49 > 0:06:53It's pretty obvious that rethinking the layout of the rooms
0:06:53 > 0:06:56will be a priority for anyone buying this place.
0:06:56 > 0:06:59But remember, it's Grade II listed.
0:06:59 > 0:07:02For London, this is a whole heap of house and garden
0:07:02 > 0:07:05for the £330,000 guide price.
0:07:05 > 0:07:08We asked a local estate agent for his opinion.
0:07:08 > 0:07:11When I saw the garden, I was quite surprised.
0:07:11 > 0:07:13Normally, you'd get postage stamp gardens.
0:07:13 > 0:07:20When I walked out there, there's a massive 100 foot garden. Looks fantastic.
0:07:20 > 0:07:24With so much space and the option of reconfiguring to make another bedroom,
0:07:24 > 0:07:26how would that affect the sales price?
0:07:26 > 0:07:31If it was a three-bed, it would be somewhere between £450,000 and £500,000.
0:07:31 > 0:07:35If it was done as a four-bedroom property,
0:07:35 > 0:07:38it could get anywhere up to £600,000.
0:07:38 > 0:07:40What about the rental market?
0:07:40 > 0:07:44If you are looking to rent the property out as a three-bedroom,
0:07:44 > 0:07:48you could achieve around £1,700 per calendar month.
0:07:48 > 0:07:50If you rented it out as a four-bedroom,
0:07:50 > 0:07:53you could achieve £2,300 per calendar month.
0:07:53 > 0:07:58There are clearly some structural issues with this place.
0:07:58 > 0:08:01Allow yourself a decent enough budget
0:08:01 > 0:08:04and you can sort out any problems there may be.
0:08:04 > 0:08:10What you would end up with is a fantastic house in a lovely location.
0:08:10 > 0:08:13Can't go wrong. Let's see who agreed when it went under the hammer.
0:08:16 > 0:08:19We move on now to Lot 65.
0:08:19 > 0:08:22Who would like to give me a start on this?
0:08:22 > 0:08:28- 350 anywhere? How much?- 330. - OK, We've got 330 down here.
0:08:28 > 0:08:34335 anywhere? Thank you. 335, 340, 345, 350, yes, 355.
0:08:34 > 0:08:40360, 365, 370, 375, 380, sir.
0:08:40 > 0:08:44385, 390.
0:08:44 > 0:08:49It's against the gentleman in the middle. Bid's at £391,000.
0:08:49 > 0:08:55Anybody else? 392 back in. 393, 394, more competition. 395.
0:08:57 > 0:09:02396. 397. No? 396 for the first...
0:09:02 > 0:09:04397, back in the room.
0:09:04 > 0:09:09398, where is he? 398, 399.
0:09:09 > 0:09:13£400,000, sir. 401.
0:09:13 > 0:09:19402, 403, 404, 405. No?
0:09:19 > 0:09:26404 for the first, 404 for the second, 404 for the third and final time.
0:09:26 > 0:09:29All done? Sold. 404. Well bid.
0:09:29 > 0:09:34That hard won bid of £404,000, £74,000 over the guide pride
0:09:34 > 0:09:39was made by restaurant owner and caterer Charles, and his wife, Tima, a hotel reception manager.
0:09:39 > 0:09:43They are looking forward to their first baby's arrival.
0:09:43 > 0:09:48They're renting in Notting Hill so this will be a new home for their new family.
0:09:48 > 0:09:53I caught up with them back there.
0:09:53 > 0:09:57- Charles, Tima, lovely to meet you both. Congratulations. - Thank you very much.
0:09:57 > 0:09:59Tell me why you wanted to buy this house.
0:09:59 > 0:10:05When I saw a picture of a lake, I thought, that can't be right.
0:10:05 > 0:10:10I knew the area and we drove down here and I thought it's astounding.
0:10:10 > 0:10:13It's got a late outside the front and parkland outside the back.
0:10:13 > 0:10:16Why were you so passionate about buying it?
0:10:16 > 0:10:19Because it is our first home.
0:10:19 > 0:10:23It is really hard to find something like this in London.
0:10:23 > 0:10:29- There is quite a bit of slope in the floors.- Yes.
0:10:29 > 0:10:33- Not a problem?- No. If there was a problem like great big cracks up the wall,
0:10:33 > 0:10:36but there aren't.
0:10:36 > 0:10:39Charles may seem blase about the bowed ceilings
0:10:39 > 0:10:43but this is not the first period property he's renovated.
0:10:43 > 0:10:46He has built up good contacts for restoration work.
0:10:46 > 0:10:48Tell me what are you going to do?
0:10:48 > 0:10:52- We have got about £100,000. - So, a nice budget. - We've got a nice budget.
0:10:52 > 0:10:57I don't want to spend it but we've got it.
0:10:57 > 0:11:03We haven't made up our minds how to use the rooms.
0:11:03 > 0:11:07It would depend on listed building consent as well.
0:11:07 > 0:11:13Being a caterer, restaurateur, the kitchen is the centre of the universe.
0:11:13 > 0:11:17I'd like to spill out from the kitchen into the garden.
0:11:17 > 0:11:22That requires permission to open the window, which we may or may not get.
0:11:22 > 0:11:28The fact it has been extensively repaired and there's out buildings should be helpful
0:11:28 > 0:11:30but I am in the hands of the gods.
0:11:30 > 0:11:33- Or the planners!- Or the planners! Yes.
0:11:33 > 0:11:40Then, do we have this as a reception room, do we have an extra bedroom downstairs?
0:11:40 > 0:11:42Where is your main bathroom going to be?
0:11:44 > 0:11:46We don't know yet.
0:11:47 > 0:11:50Sometimes you can have too much choice.
0:11:50 > 0:11:55I hope they get the layout right when they finally decide on one.
0:11:55 > 0:11:57What will influence what you do?
0:11:57 > 0:12:02The amount of people that are going to live here.
0:12:02 > 0:12:07I am not sure what she means by that.
0:12:10 > 0:12:14I think Charles that she means how big your family's going to get.
0:12:14 > 0:12:16A four-bed might be a good plan.
0:12:18 > 0:12:23- What's the timescale for this? - Six months.- Good question.
0:12:23 > 0:12:26Six months, I don't know. Six months would be nice.
0:12:26 > 0:12:31There is also one small thing, that you are having a baby
0:12:31 > 0:12:38- which might divert attention for a little while perhaps.- Perhaps. - Perhaps.
0:12:38 > 0:12:40I have no doubt she will.
0:12:40 > 0:12:46- You say she, do you know it's a girl already?- We are 98%...- 98% sure.
0:12:46 > 0:12:49Congratulations, good luck and I really look forward to seeing
0:12:49 > 0:12:52how you transform this into a home in lots of ways.
0:12:52 > 0:12:54- Thank you very much.- Thank you.
0:12:54 > 0:13:00What a wonderful family home this will make for Charles, Tima and their newborn.
0:13:00 > 0:13:03I know he doesn't want to spend all his £100,000 budget
0:13:03 > 0:13:06but something tells me with the listed building status
0:13:06 > 0:13:09and that kitchen he wants to put in, it will soon get eaten up.
0:13:09 > 0:13:12But rarely does a house give so many possibilities.
0:13:12 > 0:13:17Find out how they get on and meet their daughter later in the show.
0:13:19 > 0:13:23MUSIC PLAYS
0:13:29 > 0:13:32Today, I am in Blackpool, the playground of the North,
0:13:32 > 0:13:38home of the illuminations, the North Pier, the amusements
0:13:38 > 0:13:40and kiss me quick hats and sticks of rock.
0:13:40 > 0:13:44It became the first working class holiday destination in the UK
0:13:44 > 0:13:50when a railway line was built linking it to the industrialised regions of the North of England.
0:13:50 > 0:13:56It's got a fascinating history and it's still alive and kicking today.
0:14:01 > 0:14:04Even after all these years, people still flock to Blackpool
0:14:04 > 0:14:07drawn by the mixture of seaside fun and entertainment,
0:14:07 > 0:14:11whether it's on land or sea.
0:14:11 > 0:14:15They are even building a Las Vegas style chapel
0:14:15 > 0:14:21so along with a kiss me quick hat, you could also have a marry me quick.
0:14:21 > 0:14:28Just one and a half miles from the town centre, and a short walk from Blackpool South Railway Station,
0:14:28 > 0:14:31is the property I'm here to see today.
0:14:31 > 0:14:33My goodness, look, it's massive!
0:14:33 > 0:14:35It's a corner terrace.
0:14:35 > 0:14:38At the moment it's laid out as three separate flats.
0:14:38 > 0:14:42You have got a little garden to the front, and the guide price?
0:14:42 > 0:14:44£55,000 for all of that!
0:14:44 > 0:14:47I'm going to take a look.
0:14:47 > 0:14:53This grand old lady suggests faded elegance, in this case very faded.
0:14:53 > 0:14:55Let's check out the ground floor flat.
0:14:58 > 0:15:03Flat number one is massive. Goodness gracious!
0:15:03 > 0:15:06The interesting thing is, it doesn't feel at all like a flat.
0:15:06 > 0:15:12It feels like a grand house. You've got lots of room to play with.
0:15:12 > 0:15:14You are on the main road but it is double glazed
0:15:14 > 0:15:17so you can't hear too much of that. There's central heating.
0:15:17 > 0:15:21Bit of a feature fire there and overall, not bad.
0:15:21 > 0:15:25I like that Swedish sauna effect on the ceiling.
0:15:25 > 0:15:28This is the long and windy part of the flat.
0:15:28 > 0:15:31In complete contrast to the bright sunny room at the end.
0:15:31 > 0:15:38I think a little bit of work needs to be done on that wall.
0:15:38 > 0:15:43You've got bedroom one here, a kitchen right at the back.
0:15:43 > 0:15:45There's a lot you could do with this space.
0:15:45 > 0:15:49Imagine living in this flat, once it's done up. You're in Blackpool,
0:15:49 > 0:15:52you can even smell the sea from here. How exciting!
0:15:54 > 0:15:57But what I can see is a load of work.
0:15:57 > 0:16:01Off the kitchen is another room classed as a study.
0:16:01 > 0:16:06Or it could be a second bedroom. Off that room is the only bathroom.
0:16:06 > 0:16:09Not only do you have to go through the kitchen to reach it,
0:16:09 > 0:16:13you have to go through this room as well. Not ideal.
0:16:13 > 0:16:18And with the other bedroom and sitting room off a corridor,
0:16:18 > 0:16:20the place has no natural flow.
0:16:20 > 0:16:24The bonus of the flat is not just its size,
0:16:24 > 0:16:28it also comes with outside space, albeit more of a yard.
0:16:28 > 0:16:34What about the other two flats on the upper floors, what are they like?
0:16:34 > 0:16:39Let's dash round the side of the building and find out. You've got to be fit for this job.
0:16:39 > 0:16:44Apparently, there's another two flats. I think they're going to be quite large.
0:16:44 > 0:16:50The two flats that share this entrance are a one-bed studio flat on the top floor,
0:16:50 > 0:16:55which has a tenant in, so we can't access it and a two bedroom first-floor flat,
0:16:55 > 0:16:58which is a decent size too.
0:16:58 > 0:17:00This space is just incredible.
0:17:00 > 0:17:05You've got a kitchen and a bathroom, a really nice big lounge,
0:17:05 > 0:17:07not sure about the mid brown it's painted.
0:17:07 > 0:17:12I think I'd like to get rid of that, but I am going to take you on a tour.
0:17:12 > 0:17:16You've got all these rooms that don't actually do anything. Little lobby area.
0:17:16 > 0:17:19You have to curve all the way round. You've got a single bedroom there.
0:17:19 > 0:17:24In here, another double room. Quite a big space.
0:17:24 > 0:17:29You've got to go all the way back here to get to the lounge. It's a bit of a maze.
0:17:29 > 0:17:32I don't know what I'd do with a lot of these spaces.
0:17:32 > 0:17:38If this were my property, I would take all the walls down that aren't supporting and start again.
0:17:38 > 0:17:41For me, the property is not quite working.
0:17:50 > 0:17:55Knocking walls down aside, there is a great deal of refurbishment work needed.
0:17:55 > 0:17:59But this is a great substantial property for not a lot of money.
0:17:59 > 0:18:04Three flats for that amazing guide price of £55,000.
0:18:04 > 0:18:08Before I get my strongman hammer out,
0:18:08 > 0:18:11we asked along an estate agent, local to the Blackpool area,
0:18:11 > 0:18:14to see what she thought of the potential here.
0:18:14 > 0:18:20I think the layout lends itself to be a good rental property.
0:18:20 > 0:18:26There is demand for rental properties especially with multiple properties in one block.
0:18:26 > 0:18:29We have investors waiting for properties like this.
0:18:29 > 0:18:37So, demand is good but does that mean there is value in this building that was guided at £55,000?
0:18:38 > 0:18:41I would say if the building was sold as a whole,
0:18:41 > 0:18:45you would be looking to market it for about £125,000.
0:18:45 > 0:18:51That is encouraging. How much income could you earn with the three flats?
0:18:51 > 0:18:53For rental, for the whole building,
0:18:53 > 0:18:59you should be able to achieve around £1,300 per calendar month once renovated.
0:18:59 > 0:19:06That means, the three flats could bring in a healthy rental income of £15,600 per annum.
0:19:08 > 0:19:11What a place and what potential!
0:19:11 > 0:19:16Can this old traditional Blackpool lady be turned into the lovely vision
0:19:16 > 0:19:19that she was or is she all too tattered and torn?
0:19:19 > 0:19:22And someone is living in one of the flats at the moment
0:19:22 > 0:19:25which could be a problem for any potential purchaser.
0:19:25 > 0:19:31Let's see who fancied this Blackpool attraction when it went under the hammer.
0:19:32 > 0:19:35Lot 146 is a corner terrace house in need of refurbishment.
0:19:35 > 0:19:38Looking for £40,000 to start.
0:19:38 > 0:19:42£40,000 do we see? 40 straight in on the far left, seated.
0:19:42 > 0:19:48At 40,000, 42 then? 42 anywhere? 42 here, 44, 46 yes.
0:19:48 > 0:19:4948, I am looking for.
0:19:49 > 0:19:54Yes, got it. You waved your paddle. At 48, 50 then. Yes, 52. There we go.
0:19:54 > 0:20:0254,000. 56, 58, yes. A new bidder on my right. 60, then? 62.
0:20:03 > 0:20:08Yes, 62. 64, 66, 68,
0:20:08 > 0:20:1570, 72, 74, 76, 78. Shaking your head.
0:20:15 > 0:20:19At £76,000, gentleman on my left. Take one if it helps you.
0:20:19 > 0:20:2477, I have got. 78, I've got. 79, 80.
0:20:24 > 0:20:28Yes, £80,000, gentleman on my left.
0:20:28 > 0:20:31At 80,000, are we all done at £80,000?
0:20:31 > 0:20:35First time at 80,000, second time at £80,000. We are all done.
0:20:35 > 0:20:38Yes, we are. Well done. Your paddle number, please?
0:20:38 > 0:20:43For £80,000, the successful bidder for the three flats was Mark.
0:20:43 > 0:20:45He's done some house renovations in the past
0:20:45 > 0:20:49but has been living abroad for the last couple of years.
0:20:49 > 0:20:52He has returned to try his hand once more at the property game.
0:20:52 > 0:20:56I met him at his latest purchase to find out more.
0:20:58 > 0:21:00- Mark, fantastic meeting you today. - Hi.
0:21:00 > 0:21:03Tell me why you wanted to buy this house?
0:21:03 > 0:21:06Because it has already been split into three flats and it is a big property,
0:21:06 > 0:21:12so there's plenty of scope to change things round and get a good return on any money.
0:21:12 > 0:21:14When you first viewed this, what did you think?
0:21:14 > 0:21:16I hadn't seen inside when I bought it.
0:21:16 > 0:21:21- I'd only seen it from the outside. - When you came inside, what did you think?- Not as bad as I thought.
0:21:21 > 0:21:26There's a few issues with the floors but the rooms are big.
0:21:26 > 0:21:33Once you start ripping it back to the basics, take some of the walls down, it's not too bad.
0:21:33 > 0:21:37Without seeing inside before auction,
0:21:37 > 0:21:41Mark was unaware the one-bed top floor studio flat had a tenant in it.
0:21:41 > 0:21:46Luckily, he has managed to negotiate for them to leave in the next few months.
0:21:46 > 0:21:50This was fortunate because that could have really held up his plans.
0:21:50 > 0:21:53It does highlight the risk of buying sight unseen.
0:21:53 > 0:21:58Let's hope there are no more surprises lurking in the structure itself.
0:21:58 > 0:22:01Tell me a little about you. Where are you from? What do you do?
0:22:01 > 0:22:04I have lived in Blackpool most of my life.
0:22:04 > 0:22:06I used to run a hotel here for quite a few years.
0:22:06 > 0:22:11Got fed up doing that and that's when I came into buying properties
0:22:11 > 0:22:13and renovating them and renting them out.
0:22:13 > 0:22:15When the credit crunch hit,
0:22:15 > 0:22:19it started getting hard trying to get finance,
0:22:19 > 0:22:25so we decided, me and my partner, to try something new and that involved buying a bar in Gran Canaria.
0:22:25 > 0:22:27Wow, that must've been fun!
0:22:27 > 0:22:31Yes, it was fun. We had a drag theme because my partner does drag.
0:22:31 > 0:22:35- We had a good laugh.- Did you have to do all the dressing up as well?
0:22:35 > 0:22:39No, I don't do the dressing up. I leave that to Peter.
0:22:39 > 0:22:44It strikes me that his three flats may need a touch more than a little dressing up
0:22:44 > 0:22:47before they are ready for the rental market.
0:22:47 > 0:22:53- Are you going to start rearranging it? - Yes, especially the bottom floor.
0:22:53 > 0:22:57The kitchen at the back and the lounge, we're going to put the two together
0:22:57 > 0:23:00and then move the bedroom at the back and the kitchen and the bathroom.
0:23:00 > 0:23:05It's a bit of an awkward situation at the back, so we're going to move those around.
0:23:05 > 0:23:07What's your timescale?
0:23:07 > 0:23:11Probably three to four months, probably more on the four months.
0:23:11 > 0:23:14I should say so. Your budget?
0:23:14 > 0:23:20I think we'll start off with about £24,000, that's 8,000 per flat.
0:23:20 > 0:23:25Then, up to a maximum of £30,000. Give £6,000 for any hidden costs
0:23:25 > 0:23:28and anything that needs doing outside.
0:23:28 > 0:23:33- Who have you got to help you do this?- Just me and my nephew.
0:23:33 > 0:23:37Apart from the electrics - I use an electrician. The plumber does the central heating
0:23:37 > 0:23:39and I've got a lad that does the plastering.
0:23:39 > 0:23:41Everything else me and my nephew will do.
0:23:41 > 0:23:46- Are you excited by this? - Once we start ripping it down, yes.
0:23:46 > 0:23:50- It's been lovely meeting you today, good luck.- Thank you.
0:23:52 > 0:23:54Mark is such a character.
0:23:54 > 0:23:57He's got so much planned for the building,
0:23:57 > 0:24:00but will he stumble across any problems
0:24:00 > 0:24:03when he starts changing the layout?
0:24:03 > 0:24:05Will he stick to his timeframe and budget?
0:24:05 > 0:24:09You can find out what happens later in the programme.
0:24:09 > 0:24:14Coming up in Amble, Northumberland, I find there's not much room to grow out there.
0:24:14 > 0:24:17If you are entering your garden here,
0:24:17 > 0:24:20you are going to be a bit disappointed.
0:24:20 > 0:24:25In Blackpool, did former hotelier Mark find himself on a rollercoaster?
0:24:25 > 0:24:30Two weeks into stripping it out we realised there was some kind of issue with the structure.
0:24:30 > 0:24:35First, back to South London to see what restoration meant for Charles and Tima.
0:24:35 > 0:24:39It was time, it was money, it was frustration.
0:24:41 > 0:24:46We're back in Camberwell, South London to see how caterer and restaurant owner, Charles,
0:24:46 > 0:24:50and his wife got on with that massive semi-detached Georgian townhouse.
0:24:50 > 0:24:53With Tima expecting a baby,
0:24:53 > 0:24:55they fell head over heels for this property.
0:24:55 > 0:24:59It sat in a fantastic location across from a park with a lake
0:24:59 > 0:25:02and came with its very own park size back garden.
0:25:02 > 0:25:08Inside the property was spread over three floors with two rooms on each.
0:25:08 > 0:25:11It was packed with period features, cast-iron fireplaces,
0:25:11 > 0:25:14beautiful banisters, alcoves and a few period features
0:25:14 > 0:25:18you wouldn't want, like sloping floors and badly bowed ceilings.
0:25:18 > 0:25:21But Charles wasn't unduly concerned.
0:25:22 > 0:25:25No, if there was a problem there'd be great big cracks up the walls.
0:25:25 > 0:25:27But there aren't.
0:25:27 > 0:25:30He planed to strip the house back to its bones
0:25:30 > 0:25:32and find a place for the kitchen.
0:25:32 > 0:25:34But one of the biggest puzzles
0:25:34 > 0:25:38was just how to use all this space inside and out.
0:25:38 > 0:25:43We haven't quite made up our minds how to use the rooms.
0:25:43 > 0:25:47It would depend on listed building consent as well.
0:25:48 > 0:25:51The couple paid £404,000 for the house
0:25:51 > 0:25:55and had a budget of £100,000 to turn it into a home.
0:25:55 > 0:25:59They hope to turn it around in six months.
0:25:59 > 0:26:01Well, we've come back one year later to see
0:26:01 > 0:26:05if they have managed to resurrect this classic Georgian house.
0:26:07 > 0:26:12Well, the scaffolding is still up outside but don't let that fool you.
0:26:12 > 0:26:16The house is most definitely now a superb family home.
0:26:28 > 0:26:31Clearly, Charles and Tima have been extremely busy
0:26:31 > 0:26:33on much more than the house.
0:26:33 > 0:26:36For starters, there is the arrival of their daughter, Valentina.
0:26:36 > 0:26:40Valentina was born nine months ago.
0:26:40 > 0:26:43She's so beautiful. What a treat.
0:26:43 > 0:26:45I'm very lucky.
0:26:46 > 0:26:49Looking after a baby as well as fixing up a house
0:26:49 > 0:26:54is quite a demanding combination and this is no ordinary house.
0:26:56 > 0:27:00I've done buildings like this before and from this period.
0:27:00 > 0:27:02With hindsight I was too confident.
0:27:02 > 0:27:07This particular building is far more fragile
0:27:07 > 0:27:09than I'd appreciated.
0:27:09 > 0:27:13Although plenty of the problems were on show when they bought it
0:27:13 > 0:27:16even more were lurking out of sight.
0:27:16 > 0:27:20We discovered that we had to have new drains,
0:27:20 > 0:27:22which is very expensive.
0:27:22 > 0:27:25We did a lot of investigative work
0:27:25 > 0:27:29under floorboards, behind plaster
0:27:29 > 0:27:34and discovered some horrors and some actually not so bad at all.
0:27:34 > 0:27:37Let's not forget this house was Grade II listed
0:27:37 > 0:27:40which added a whole new dimension to the renovation.
0:27:42 > 0:27:47If 75% of the original exists you must restore it.
0:27:47 > 0:27:51It was time, it was money, it was frustration.
0:27:51 > 0:27:56The care and attention to period detail might have taken more time
0:27:56 > 0:27:58but the results are simply stunning.
0:28:01 > 0:28:04The top floor is now two beautiful bedrooms.
0:28:04 > 0:28:08Valentina's looks out over the park at the front of the house.
0:28:13 > 0:28:17And Charles and Tima's is at the back overlooking the garden.
0:28:20 > 0:28:24Between them, there's a brand new family shower room.
0:28:24 > 0:28:27Really, every room has a special thing.
0:28:27 > 0:28:30Sometimes I think to myself what is the best thing in this place?
0:28:30 > 0:28:34Every time I find every room has its own character.
0:28:34 > 0:28:37On the upper ground floor the old bedsit-type front room
0:28:37 > 0:28:40has been transformed into a glorious sitting-room
0:28:40 > 0:28:42that's now full of character.
0:28:49 > 0:28:52At the back is the all-important kitchen.
0:28:57 > 0:29:00Charles had to wait seven months to get planning consent
0:29:00 > 0:29:02for the basement conversion.
0:29:02 > 0:29:05In the meantime he has re-thought his original plans
0:29:05 > 0:29:08to place the kitchen on the garden level.
0:29:08 > 0:29:12It'll be a bedroom at the front and a large bathroom at the back,
0:29:12 > 0:29:17a utility room and then you will go into what will be a day room,
0:29:17 > 0:29:19an office, or another bedroom.
0:29:19 > 0:29:21That will open out into the garden.
0:29:21 > 0:29:25Charles originally thought this refurbishment would take six months
0:29:25 > 0:29:29and they had allocated up £100,000 to do it.
0:29:29 > 0:29:32So, how did the budget fare given the costly
0:29:32 > 0:29:36and skilled restoration they had on their hands?
0:29:38 > 0:29:40The budget!
0:29:40 > 0:29:45Yes. I declared that we'd got a budget of £100,000 which we did.
0:29:45 > 0:29:48A pity we didn't keep to it.
0:29:48 > 0:29:54By the time the extension has been built the budget will have doubled.
0:29:54 > 0:29:58I'm hoping that the value will show through. We shall see.
0:29:59 > 0:30:00We shall indeed.
0:30:00 > 0:30:04Time to hear what two local property experts think of the work done here.
0:30:04 > 0:30:06In terms of the style of the house
0:30:06 > 0:30:08and the character I think they've done a really good job.
0:30:08 > 0:30:12They've used what's here but haven't tried to replace what's here
0:30:12 > 0:30:14and get it wrong which a lot of people do.
0:30:14 > 0:30:17You still get the period feel but it's done tastefully
0:30:17 > 0:30:19which is very important.
0:30:19 > 0:30:23The building, the location, the way it overlooks the park
0:30:23 > 0:30:28and the way it has been finished is absolutely fantastic.
0:30:28 > 0:30:31High praise indeed but will it translate into profit
0:30:31 > 0:30:35when the new extension's finished and the garden level is complete?
0:30:35 > 0:30:38I'd set the value somewhere around the £650,000 mark
0:30:38 > 0:30:43possibly up to £675,000 because it is a very unusual property.
0:30:43 > 0:30:47Once the extension is complete it should sell for £675,000 - £700,000.
0:30:47 > 0:30:54That would give the couple a profit of between £46,000 and £96,000 before fees and expenses.
0:30:54 > 0:30:57If we wanted to sell it then I suspect that'll be about the price.
0:31:00 > 0:31:04I'm disappointed but I suspect it's realistic.
0:31:06 > 0:31:09It can be hard to get an exact valuation
0:31:09 > 0:31:11when there is still a heap of work to do
0:31:11 > 0:31:15but Charles and Tima bought this house to be their long-term family home.
0:31:15 > 0:31:17# I come home
0:31:18 > 0:31:20# She lifted up her wings
0:31:20 > 0:31:23# I guess this must be her place. #
0:31:24 > 0:31:28I love the building. I am affected by tradition.
0:31:28 > 0:31:32I'm just a page in its book and I want it to be a good page.
0:31:35 > 0:31:38# You will have a fishy on a little dishy
0:31:38 > 0:31:40# You will have a fishy when the boat comes in
0:31:40 > 0:31:44# You will have a fishy on a little dishy
0:31:44 > 0:31:47# You will have a fishy when the boat comes in. #
0:31:47 > 0:31:50Today I am in the small fishing port of Amble
0:31:50 > 0:31:52on the Northumberland coast
0:31:52 > 0:31:55and even on a day like this it's still a charming spot.
0:31:56 > 0:31:59In fact, this little place has a poignant reputation
0:31:59 > 0:32:01for friendliness and charm.
0:32:01 > 0:32:06In the 1930s the steamship RMS Mauritania was heading out
0:32:06 > 0:32:09for the last time to the breaker's yard in Fife.
0:32:09 > 0:32:12The Amble town council at the time sent a telegram to the ship
0:32:12 > 0:32:16saying she was still, "The finest ship of the seas."
0:32:16 > 0:32:19The Mauritania replied with a greeting to,
0:32:19 > 0:32:21"The last and friendliest port in England"
0:32:21 > 0:32:24as she sailed into the distance on her final voyage.
0:32:24 > 0:32:28So, steaming ahead and only five minutes walk from the town centre
0:32:28 > 0:32:30is the property I am here to see.
0:32:30 > 0:32:34It's a traditional stone built terrace, three bedrooms,
0:32:34 > 0:32:38had a guide price of £74,950.
0:32:38 > 0:32:40What's it like inside?
0:32:40 > 0:32:43There is only one way to find out.
0:32:44 > 0:32:46That's a nice surprise.
0:32:46 > 0:32:50Through the front door and a really good size entrance hallway.
0:32:50 > 0:32:53Fantastic, somewhere to put your coats there.
0:32:53 > 0:32:57It gives, immediately, a nice feeling of openness which is great.
0:32:57 > 0:33:01Front sitting room there. Looks to be in pretty decent condition.
0:33:01 > 0:33:03Even the carpets could do you.
0:33:03 > 0:33:06Towards the back it starts to get a bit strange
0:33:06 > 0:33:11because that's the kitchen and then this is the rear sitting room area
0:33:11 > 0:33:15but you've got this window between here and the kitchen.
0:33:16 > 0:33:19Fantastic if you like watching other people do the work
0:33:19 > 0:33:23or you are a bit of a kitchen voyeur, but not ideal. So...
0:33:25 > 0:33:27Basically this wall has to go.
0:33:27 > 0:33:33Knock that down to create a really nice open plan kitchen/living area.
0:33:34 > 0:33:37In terms of what it is at the moment, the units are old.
0:33:37 > 0:33:41I wouldn't worry about that because you are going to redo this area.
0:33:41 > 0:33:45Do that and I think you've got a really great property here.
0:33:45 > 0:33:47# Steamy windows
0:33:49 > 0:33:52# Ain't nobody can see
0:33:53 > 0:33:55# Steamy windows... #
0:33:56 > 0:33:58Yes, that window really has to go.
0:33:58 > 0:34:01It must steam up every time the cooker goes on
0:34:01 > 0:34:03in that rather small galley kitchen.
0:34:03 > 0:34:06A kitchen diner would work so much better here
0:34:06 > 0:34:10and with a good-sized front reception room and open, airy hallway,
0:34:10 > 0:34:15this house is bigger than the outer appearance might lead you to believe.
0:34:15 > 0:34:20Upstairs, a bit more unusual glass, different kind of voyeurism here.
0:34:20 > 0:34:23It leads into the bathroom and the loo.
0:34:23 > 0:34:27Once again, when you come up here a really great feeling of space.
0:34:27 > 0:34:31I love this landing and it gives this whole property something
0:34:31 > 0:34:33I was not expecting.
0:34:33 > 0:34:37It feels really, really big and lovely.
0:34:37 > 0:34:40Three bedrooms and a good-sized bathroom.
0:34:40 > 0:34:44In terms of what you've got to work with in this property I just love it.
0:34:47 > 0:34:51If the prospect of three good-sized bedrooms, all of which are in decent order,
0:34:51 > 0:34:54centrally heated, looking structurally sound
0:34:54 > 0:34:58and a large bathroom weren't enough for you, you could also consider
0:34:58 > 0:35:00extending into the loft space
0:35:00 > 0:35:03with the right planning permission of course.
0:35:03 > 0:35:07So, this decent sized house has the potential to be even bigger.
0:35:07 > 0:35:11# Let it grow, let it grow
0:35:14 > 0:35:17# Let it blossom... #
0:35:17 > 0:35:21At the back of the property you've got this little rear yard.
0:35:21 > 0:35:24But as you can see it's very wet out there today
0:35:24 > 0:35:27so I will tell you all about it from in here.
0:35:27 > 0:35:30If you wanted a garden you are going to be disappointed
0:35:30 > 0:35:34but a couple of planters out there and you'd really improve it.
0:35:34 > 0:35:38A big bonus - two out-buildings including an outside loo.
0:35:40 > 0:35:43Well, it's looking good to me but let's hear from someone
0:35:43 > 0:35:46who knows the likely local appetite for it.
0:35:46 > 0:35:49We asked an estate agent for her opinion.
0:35:51 > 0:35:53This property is in a very popular area
0:35:53 > 0:35:56because it has a lot of local amenities
0:35:56 > 0:35:59that are within walking distance to it.
0:35:59 > 0:36:01It also is very spacious
0:36:01 > 0:36:04and has a lot of flexible accommodation inside the property.
0:36:04 > 0:36:07If you were hoping to sell this on and make a profit
0:36:07 > 0:36:10after you've done it up, what could you expect to get?
0:36:10 > 0:36:14In my opinion the value of the property is in the region
0:36:14 > 0:36:20of £125,000 - £130,000 if it was done up to a good standard.
0:36:21 > 0:36:22And as a rental?
0:36:22 > 0:36:25'The rental value, I'd be looking to achieve in the region
0:36:25 > 0:36:27'of the £500 per calendar month.'
0:36:31 > 0:36:34There are a few internal modifications you could make
0:36:34 > 0:36:39to this house but it is a fantastic little property in a lovely area.
0:36:39 > 0:36:40What is there not to like?
0:36:40 > 0:36:43Let's see who agreed when it went under the hammer.
0:36:44 > 0:36:47This lot came up at the end of the auction day.
0:36:47 > 0:36:49Move along to lot number 100.
0:36:49 > 0:36:52It's a traditional stone-built house
0:36:52 > 0:36:56in a popular street in the coastal town of Amble.
0:36:56 > 0:36:58Can I ask 75,000 anywhere?
0:36:58 > 0:37:00Thank you. Quickly.
0:37:00 > 0:37:03I've got one bid of £75,000.
0:37:03 > 0:37:07Can I have 76 anywhere else? 76,000 bid.
0:37:07 > 0:37:1077? 77 bid.
0:37:10 > 0:37:1378. 79.
0:37:13 > 0:37:16Yes? 79 bid. 80. 81.
0:37:16 > 0:37:1882. 83.
0:37:20 > 0:37:2383 bid. 84. 85.
0:37:23 > 0:37:2486.
0:37:24 > 0:37:2786 bid. 87.
0:37:27 > 0:37:29I'll take 500 if it helps.
0:37:29 > 0:37:3186,500. 86,500 bid.
0:37:31 > 0:37:33I will take 500 again.
0:37:33 > 0:37:3587. 87 bid.
0:37:35 > 0:37:3787,500.
0:37:37 > 0:37:39No? To the lady in the second row.
0:37:39 > 0:37:42£87,000.
0:37:42 > 0:37:45I am selling it, you are both out. I am selling for once, 87.
0:37:45 > 0:37:48I'm selling for the second time at £87,000.
0:37:48 > 0:37:54To the lady in the second row at £87,000.
0:37:54 > 0:37:59Those relieved bidders were Evelyn and her daughter Michelle.
0:38:02 > 0:38:05They each own stationery shops in the area.
0:38:05 > 0:38:10With their bid of 87,000, £7,500 over the guide price,
0:38:10 > 0:38:15they've secured a new home for Michelle and her 13-year-old son, Cain.
0:38:15 > 0:38:19Evelyn, Michelle, great to meet you both. Congratulations.
0:38:19 > 0:38:22- Thank you.- Tell me why you wanted to buy this place.
0:38:22 > 0:38:26Erm, we have lived in the area my whole life.
0:38:26 > 0:38:30I moved out of the area a few years ago.
0:38:30 > 0:38:32When I came back I couldn't afford a house
0:38:32 > 0:38:35so this year we started looking and this one became available.
0:38:35 > 0:38:39- Right.- We went to see if we could get it.
0:38:39 > 0:38:41And you did.
0:38:41 > 0:38:44'Michelle has been away for six or seven years
0:38:44 > 0:38:47'and getting on the local property market seemed out of her reach.
0:38:47 > 0:38:51'However, by securing this house at their first ever auction,
0:38:51 > 0:38:56'Michelle is now very handy for her mum who lives just a few streets away.'
0:38:56 > 0:38:59Evelyn, what is your involvement?
0:38:59 > 0:39:03It's very important, it's called a chequebook and a pen.
0:39:03 > 0:39:08- The bank of mum.- That's right. That is my involvement.
0:39:08 > 0:39:13- What are you going to do to sort it out?- New central heating.
0:39:13 > 0:39:15- Electrics.- New electrics.
0:39:16 > 0:39:18Apart from that, I'm not sure.
0:39:20 > 0:39:25- No, just your expensive bathroom you would like.- Well, yes.
0:39:25 > 0:39:27There is that.
0:39:27 > 0:39:30- And the kitchen of course. - My beautiful kitchen.
0:39:30 > 0:39:33Mam's got the purse strings so I will have to behave.
0:39:33 > 0:39:38- What is the budget? - Michelle's budget or my budget?
0:39:38 > 0:39:41Why? Are they different?
0:39:41 > 0:39:44There is a couple of noughts difference, isn't there, Michelle?
0:39:44 > 0:39:46- Yes.- 10 to 12.
0:39:46 > 0:39:4815 tops.
0:39:50 > 0:39:5110 to 12.
0:39:52 > 0:39:55'Well, I have a funny feeling the bank of mum
0:39:55 > 0:39:59'is going to be relieved at that higher £15,000 figure.
0:39:59 > 0:40:03'They're hoping to get the work done in just two to three months.'
0:40:03 > 0:40:05- Who's going to do the work? - Sadly, it's professionals.
0:40:05 > 0:40:08We've got builders and everybody coming
0:40:08 > 0:40:11because apart from stripping the wallpaper
0:40:11 > 0:40:14and painting of bits and bobs, I could do that with some friends,
0:40:14 > 0:40:17but as for the rest of it it will have to be people
0:40:17 > 0:40:19coming in from the outside, sadly.
0:40:19 > 0:40:21That is where the expense is.
0:40:21 > 0:40:25You are going to make sure you will get some good people involved,
0:40:25 > 0:40:28get lots of quotes. Three at least, but four possibly.
0:40:28 > 0:40:30What are you most looking forward to?
0:40:30 > 0:40:33Just having a home that is mine
0:40:33 > 0:40:38and having somewhere just to settle with me and the little ones.
0:40:38 > 0:40:41- Has Cain seen it yet? - Yes, he's been in.
0:40:41 > 0:40:43- Has he chosen his bedroom yet?- Yes.
0:40:43 > 0:40:45- And has he chosen the biggest bedroom?- Yes.
0:40:48 > 0:40:51- Is he going to get that as his room? - I think he will, yes.
0:40:51 > 0:40:55I hope this one works out well for you. I look forward to seeing how you get on.
0:40:55 > 0:40:57- We will be back.- Thank you.
0:40:57 > 0:41:00- Well done.- Thank you. - Good to meet you.
0:41:03 > 0:41:07That is lovely. Mum Evelyn helping Michelle return to Amble
0:41:07 > 0:41:09and to a great house.
0:41:09 > 0:41:11I really hope they take my advice
0:41:11 > 0:41:14and get lots of quotes for the work that needs to be done
0:41:14 > 0:41:18but with that done it will be a lovely home for her and her son.
0:41:18 > 0:41:21You can see how they all get on later in the show.
0:41:24 > 0:41:27We hope our buyers have been working away on their investments.
0:41:27 > 0:41:30Have they had time to make themselves a nice profit?
0:41:30 > 0:41:35Have they been busy or have things not turned out as they'd hoped?
0:41:35 > 0:41:37It's time to go back and find out.
0:41:38 > 0:41:42The Lancashire seaside town of Blackpool may epitomise
0:41:42 > 0:41:45a British seaside holiday resort with its famous tower,
0:41:45 > 0:41:48trams, lights and entertainment.
0:41:48 > 0:41:52But it is also a popular place to live, so when a very large,
0:41:52 > 0:41:57rather quirky building came up for auction it was certainly worth checking out
0:41:57 > 0:42:01especially since it had been subdivided into three flats.
0:42:01 > 0:42:04There was one two-bedroom ground floor flat with its own entrance.
0:42:04 > 0:42:07Then, a two-bed first floor flat
0:42:07 > 0:42:10and a one-bed studio flat at the top floor,
0:42:10 > 0:42:13both reached via a side entrance.
0:42:13 > 0:42:17But the layout was, to say the least, far from ideal.
0:42:17 > 0:42:20There were rooms off rooms and a maze of short corridors.
0:42:20 > 0:42:23But for ex-hotelier, Mark, it was an opportunity
0:42:23 > 0:42:28to return to property developing after two years away.
0:42:28 > 0:42:33When the credit crunch hit it started getting quite hard to get finance.
0:42:33 > 0:42:36So, we decided, me and my partner, to try something new
0:42:36 > 0:42:40and that involved buying a bar in Gran Canaria.
0:42:40 > 0:42:43- Wow, that must have been fun. - Yes, it was fun.
0:42:43 > 0:42:49We had the drag theme because my partner does drag, so it was a drag theme bar. We had a good laugh.
0:42:50 > 0:42:51But he's back in Blackpool
0:42:51 > 0:42:55and having paid £80,000 at auction for this large, muddled property
0:42:55 > 0:43:01Mark planed to retain the three flats and address the layout issues.
0:43:01 > 0:43:03He was hoping that with a £30,000 budget
0:43:03 > 0:43:06and a three to four months' timescale he and his nephew
0:43:06 > 0:43:11could do the changes necessary to make this suitable for the rental market.
0:43:11 > 0:43:14So, was this to be a happy return to property development?
0:43:14 > 0:43:19Now over 11 months later we're back to find out.
0:43:22 > 0:43:25The first noticeable thing is that the old faded lady
0:43:25 > 0:43:31has had a real makeover and not just a quick bit of slap either.
0:43:31 > 0:43:36A new roof, new windows, doors and the rendering is completely re-done.
0:43:36 > 0:43:38Why the total transformation?
0:43:38 > 0:43:42Two weeks into stripping it out we realised there was an issue
0:43:42 > 0:43:45with the structure of the brickwork, especially the main supporting wall
0:43:45 > 0:43:48in the centre of the building having dropped by nine inches.
0:43:48 > 0:43:52We had to move... Two thirds of the building had to be pulled down.
0:43:52 > 0:43:56Then we had to have new foundations, the walls to be rebuilt and that type of thing.
0:43:56 > 0:43:59It took us five months to get to the blank canvas
0:43:59 > 0:44:02before we could start putting the building back together again.
0:44:02 > 0:44:06Wow, it takes a lot to recover from this kind of rollercoaster ride
0:44:06 > 0:44:10but Mark's still here and the messy layout in the ground floor flat has gone.
0:44:14 > 0:44:16This flat saw the major change
0:44:16 > 0:44:19because the layout before was very awkward.
0:44:19 > 0:44:21We moved the kitchen from the back into the lounge
0:44:21 > 0:44:24because it was a fairly large lounge so we could take a piece off there.
0:44:24 > 0:44:28In doing so, we managed to move the back door to the other side
0:44:28 > 0:44:30allowing us to put a long corridor in,
0:44:30 > 0:44:34allowing to move the second bedroom and the bathroom off that corridor,
0:44:34 > 0:44:38completely altering the layout and making it easier to use.
0:44:39 > 0:44:42Off the new corridor there are now two bedrooms
0:44:42 > 0:44:45and a bathroom which still needs some work to finish it off
0:44:45 > 0:44:48to go alongside what is a good-sized kitchen/diner.
0:44:48 > 0:44:51The two-bed ground floor flat is well on its way
0:44:51 > 0:44:56but what about the other two flats reached via the side entrance?
0:44:58 > 0:45:02In this flat we moved the door from in this corner here
0:45:02 > 0:45:05and in doing so we've got a bit extra room in the lounge
0:45:05 > 0:45:09because we could move the corridor and also the bathroom and kitchen,
0:45:09 > 0:45:12we could get a bit bigger because there's no corridor in there either.
0:45:14 > 0:45:18With the kitchen and bathroom now accessed off the main lounge,
0:45:18 > 0:45:21Mark has got a more natural flow to the flat.
0:45:25 > 0:45:28And though the two bedrooms along the corridor
0:45:28 > 0:45:33have remained a similar shape and size they've been completely refurbished.
0:45:37 > 0:45:39But what about the top floor studio flat
0:45:39 > 0:45:43which we couldn't even access before because it had a tenant in it?
0:45:43 > 0:45:45It wasn't too bad actually.
0:45:45 > 0:45:47She managed to find somewhere else to move to
0:45:47 > 0:45:49and went within three or four weeks.
0:45:49 > 0:45:52It could have been a bit awkward if they were an awkward tenant
0:45:52 > 0:45:54but she was really, really nice.
0:45:54 > 0:45:57I even gave her a hand to move her stuff in the van. She was quite happy.
0:45:57 > 0:46:00Mark was lucky the tenant was so cooperative
0:46:00 > 0:46:05as a sitting tenant does have some legal rights. So, buyers beware.
0:46:05 > 0:46:08But at last we get to see the top floor studio flat.
0:46:08 > 0:46:11Quite quirky with an oddly angled lounge
0:46:11 > 0:46:17with one bedroom off a small galley kitchen and then a shower room.
0:46:17 > 0:46:22It seems Mark's grand old lady turned into a bit of a monster.
0:46:22 > 0:46:26With all but the electrics, plumbing and main structural building work
0:46:26 > 0:46:29done by Mark and his nephew, Ben, he's been here most days.
0:46:29 > 0:46:33It seems all the hard work may have been worth it.
0:46:33 > 0:46:35The flats are all tenanted.
0:46:35 > 0:46:38We've got people waiting to move into the bottom flat and the second flat
0:46:38 > 0:46:40as soon as they're done.
0:46:40 > 0:46:43The top flat needs a bit more work on it
0:46:43 > 0:46:45so probably another three to four weeks for them to move on.
0:46:45 > 0:46:50That's great news and a real incentive to finish off this protracted project.
0:46:50 > 0:46:54What impact have all the unforeseen problems had on the costs?
0:46:54 > 0:47:00The original budget was £24,000 with the contingency going to £30,000.
0:47:00 > 0:47:03Once we'd got to the point where we realised the structure
0:47:03 > 0:47:07needed to come down at the back, that budget got blown away
0:47:07 > 0:47:12and the 30,000 went instantly on trying to rebuild that.
0:47:12 > 0:47:14The budget has gone well out the window.
0:47:14 > 0:47:18Yes, the budget really did go out of the window
0:47:18 > 0:47:21and now stands at a whopping £75,000.
0:47:22 > 0:47:26Having purchased the building for £80,000 at auction,
0:47:26 > 0:47:30the total outlay here without cost and fees is £155,000.
0:47:30 > 0:47:36What do two local estate agents make of this three-in-one property?
0:47:36 > 0:47:38They've really worked with the personality of the house,
0:47:38 > 0:47:40brought out its light.
0:47:40 > 0:47:43It's got nice high ceilings and I think that really works.
0:47:43 > 0:47:46They've complemented it with the down lighting.
0:47:46 > 0:47:49I like the finish of the place and the size of the rooms.
0:47:49 > 0:47:52They're all bright, there's plenty of windows
0:47:52 > 0:47:55so it's a nice, bright place with a lovely feel to it.
0:47:55 > 0:47:58Mark is looking at this as a rental machine.
0:47:58 > 0:48:01If he were to put the whole building for sale
0:48:01 > 0:48:05could he see any return on his £155,000 investment?
0:48:05 > 0:48:09In today's market we are looking at £160,000.
0:48:09 > 0:48:14To sell the whole building I would imagine you'd be in the region of £150,000.
0:48:14 > 0:48:18Right. That's a lot lower than what I thought it would be.
0:48:20 > 0:48:26That could be a pre-tax profit of £5,000 or possibly a £5,000 loss.
0:48:26 > 0:48:28But rental's the name of the game here
0:48:28 > 0:48:30and Mark's already got tenants lined up.
0:48:30 > 0:48:34Has he got the best combined return on his three flats?
0:48:34 > 0:48:38As one proposition I think you would achieve
0:48:38 > 0:48:41approximately £18,000 a year.
0:48:41 > 0:48:44For the whole year, I would imagine you'd be renting the whole building
0:48:44 > 0:48:47in the region of £15,000 per annum.
0:48:47 > 0:48:50Yes, the 18,000 is about the right amount.
0:48:50 > 0:48:54That works out about right with what I'm getting on the rental
0:48:54 > 0:48:56with the tenants that are moving in.
0:48:56 > 0:49:00Mark's tenants are paying between £476 per calendar month
0:49:00 > 0:49:02for the one-bed flat,
0:49:02 > 0:49:06and £540 per calendar month for each of the two-bedroom flats.
0:49:06 > 0:49:10That reaps him a healthy yield of above 11%.
0:49:10 > 0:49:14Even after all the structural issues this appears to have been
0:49:14 > 0:49:18a very successful return to property developing for Mark.
0:49:18 > 0:49:21So, is it or more of the same or back to the bar?
0:49:21 > 0:49:24I'll look for another property, probably flats again,
0:49:24 > 0:49:28and do the same type of thing, not with as much structural work to do.
0:49:28 > 0:49:31Hopefully, just a refurb and quickly move on to the next one.
0:49:31 > 0:49:33Not as long on the next one.
0:49:37 > 0:49:40In the coastal town of Amble in Northumberland,
0:49:40 > 0:49:44a surprisingly spacious three-bedroom stone-built
0:49:44 > 0:49:46terraced house went to auction.
0:49:46 > 0:49:50First impressions were certainly favourable with decent sized rooms
0:49:50 > 0:49:53and no sign of damp or structural issues.
0:49:54 > 0:49:57It did have a slightly odd window between the smallest kitchen
0:49:57 > 0:50:01and the rear dining room but nothing that couldn't be easily sorted.
0:50:02 > 0:50:05So, for local mother and daughter, Evelyn and Michelle,
0:50:05 > 0:50:08this looked like it might be perfect as a new home for Michelle
0:50:08 > 0:50:10and her 13-year-old son, Cain.
0:50:10 > 0:50:13With Evelyn living just around the corner
0:50:13 > 0:50:16and both of them running card and stationery shops in the area
0:50:16 > 0:50:19their location was spot on.
0:50:20 > 0:50:24So, for £87,000 they bought the house at auction.
0:50:24 > 0:50:28Then it was just a case of working out how much to spend on it.
0:50:30 > 0:50:31What is the budget?
0:50:31 > 0:50:35Michelle's budget or my budget?
0:50:35 > 0:50:36Are they different?
0:50:36 > 0:50:40There's a couple of noughts difference, isn't there?
0:50:40 > 0:50:42- Yes.- 10 - 12.
0:50:42 > 0:50:4415 tops.
0:50:46 > 0:50:4710 - 12.
0:50:50 > 0:50:52Well, in theory Mum was holding the purse strings
0:50:52 > 0:50:58but in practice, let's see, as we return just four months later.
0:51:01 > 0:51:05Well, at the front, the main change is the addition of some air bricks
0:51:05 > 0:51:09to help circulation and inside...
0:51:11 > 0:51:15The front reception room certainly looks much more homely
0:51:15 > 0:51:18with modern fittings and furnishings.
0:51:18 > 0:51:22But what about the rear reception room with the odd window
0:51:22 > 0:51:24between it and the kitchen?
0:51:24 > 0:51:27# Open your window
0:51:27 > 0:51:29# Won't you let her out
0:51:29 > 0:51:33# Wave goodbye to the butterfly the one you can't be without
0:51:33 > 0:51:35# Open your window
0:51:35 > 0:51:38# Won't you set her free
0:51:38 > 0:51:42# Where you are isn't where she's at... #
0:51:43 > 0:51:44So, this is my kitchen.
0:51:45 > 0:51:51The wall used to be here and the door was about here.
0:51:51 > 0:51:54As you can see, they've gone.
0:51:54 > 0:51:57I'm left with this lovely kitchen
0:51:57 > 0:51:59with everything I could possibly want
0:51:59 > 0:52:02and my beautiful island with its sparkly tiles.
0:52:02 > 0:52:05Well, the kitchen certainly does sparkle.
0:52:05 > 0:52:07It's fantastic the way the space works now.
0:52:12 > 0:52:13But what about upstairs?
0:52:16 > 0:52:17# Open your window
0:52:19 > 0:52:21# Won't you let her out
0:52:21 > 0:52:24# Wave goodbye to the butterfly the one you can't be without... #
0:52:24 > 0:52:26The three bedrooms look very striking,
0:52:26 > 0:52:31or should that be striping, with modern lines throughout.
0:52:32 > 0:52:35And what about that luxury budget-busting bathroom
0:52:35 > 0:52:37Michelle had in mind?
0:52:39 > 0:52:43Well, this is the bathroom. There used to be a cupboard here
0:52:43 > 0:52:46which has obviously gone.
0:52:46 > 0:52:49With it being such a big space we decided to have
0:52:49 > 0:52:51the bath and shower separate.
0:52:51 > 0:52:53Then the cabinets just finish it off.
0:52:55 > 0:52:59So, what a transformation from a house into a home.
0:52:59 > 0:53:01As they employed a builder to do the work
0:53:01 > 0:53:05and did get a number of quotes, how hands-on were Evelyn and Michelle?
0:53:07 > 0:53:10We weren't on site that much, not at the beginning,
0:53:10 > 0:53:13but as it got closer to the deadline we realised
0:53:13 > 0:53:19that everything hadn't been done to the way it was supposed to be have been done.
0:53:19 > 0:53:22Mam came in with a clip board and told them
0:53:22 > 0:53:25exactly what they should have been doing.
0:53:27 > 0:53:29- I believe we still speak to them, don't we?- We do, yes.
0:53:29 > 0:53:31We had an understanding at that point
0:53:31 > 0:53:34that they were going to do what they were supposed to be doing.
0:53:34 > 0:53:37The only remaining task to be checked off Evelyn's clipboard
0:53:37 > 0:53:42is the patio area. That is taking the place of the old outside privy.
0:53:42 > 0:53:46Then it will be the lovely home Michelle was so keen to have
0:53:46 > 0:53:47for herself and her son.
0:53:47 > 0:53:50Did he get the biggest bedroom after all?
0:53:50 > 0:53:54With Cain it's quite comical because when he looked at the house,
0:53:54 > 0:53:57I said you're getting the little room. He went, "Oh, right."
0:53:59 > 0:54:02Me and Mam had talked about it and we have given him the big room.
0:54:02 > 0:54:06He has been barred from the house since the carpets went down
0:54:06 > 0:54:09because he knows what carpet he's getting.
0:54:09 > 0:54:12- He doesn't know any of it yet. - A lovely surprise for him.
0:54:16 > 0:54:17Where's my bed?
0:54:19 > 0:54:23- What?- Where's my bed?- Maybe you want to try the other room then.
0:54:28 > 0:54:29Oh, yes!
0:54:37 > 0:54:39- Does that meet with your approval? - Yes.
0:54:41 > 0:54:44Isn't that great? It seems everyone's happy with the outcome.
0:54:44 > 0:54:45Yes.
0:54:45 > 0:54:48Wait a minute. What about the battle of the budget. Who won?
0:54:48 > 0:54:51Was it Mum or did Michelle break the bank here?
0:54:51 > 0:54:54My original budget was 10 - 12.
0:54:54 > 0:54:58- My original budget was 15. - Michelle's.
0:55:00 > 0:55:01And sadly...
0:55:01 > 0:55:08we've probably spent between £17,000 and £18,000.
0:55:08 > 0:55:14An £18,000 spend on top of the £87,000 purchase price
0:55:14 > 0:55:20will take their total outlay to £105,000 without costs and fees.
0:55:21 > 0:55:24What do two local estate agents think of the property
0:55:24 > 0:55:26now it's been renovated?
0:55:30 > 0:55:33It's a lovely property and they have done a good job to it.
0:55:33 > 0:55:36Modernised throughout and it is beautiful.
0:55:36 > 0:55:38The property's fantastic.
0:55:38 > 0:55:41It's a popular street and I think people who've worked on the property
0:55:41 > 0:55:43have done a nice job.
0:55:43 > 0:55:47Yes, they have done a great job but have they invested their £105,000
0:55:47 > 0:55:51in this three-bed terraced house wisely?
0:55:51 > 0:55:57I would recommend a valuation in the region of £125,000 - £129,950.
0:55:57 > 0:56:01We would be looking to market the property for around £128,000.
0:56:01 > 0:56:04That's not bad. Not bad at all.
0:56:05 > 0:56:06That is a profit.
0:56:06 > 0:56:08It is indeed.
0:56:08 > 0:56:14A potential pre-tax profit of between £20,000 and £24,950.
0:56:14 > 0:56:15So, there is some money in it.
0:56:15 > 0:56:19Would that tempt them to try and do another property?
0:56:19 > 0:56:21Short-term, we're going to get back to work
0:56:21 > 0:56:25but long-term, I think we've possibly thought about
0:56:25 > 0:56:26doing a couple of more houses.
0:56:26 > 0:56:29It's a good way for you to earn money.
0:56:29 > 0:56:32- Early retirement for me.- Yes. - Sounds good. I like that.
0:56:36 > 0:56:39That is it for today's show. We'll have more properties
0:56:39 > 0:56:42and more enthusiastic buyers for you next time.
0:56:42 > 0:56:44Make sure you join us then for more Homes Under The Hammer.
0:56:44 > 0:56:46- Goodbye.- Goodbye.
0:56:57 > 0:56:59Subtitles by Red Bee Media Ltd