0:00:02 > 0:00:04Despite all the uncertainty in the market,
0:00:04 > 0:00:06people still want to invest in property.
0:00:06 > 0:00:08And if you're prepared to take the plunge,
0:00:08 > 0:00:11auctions are a great place to start.
0:00:11 > 0:00:13Yes, it could be a bit nerve-shredding,
0:00:13 > 0:00:17but why don't you try your hand buying a home under the hammer?
0:00:42 > 0:00:45Some properties are very popular at auction,
0:00:45 > 0:00:47and others, well, they just go unsold.
0:00:47 > 0:00:51Yes, so the auction room can be a difficult place to master.
0:00:51 > 0:00:54So here's the lots that won the hearts of our buyers
0:00:54 > 0:00:55on today's programme.
0:00:56 > 0:01:00This place in Bootle is full of surprises, especially the kitchen.
0:01:00 > 0:01:05Is it going to be tiny?! No, no, no! Look at it! It's fantastic!
0:01:06 > 0:01:10The layout of this Twickenham mid-terrace perplexes me.
0:01:10 > 0:01:15A four bed with two singles. It doesn't make much sense to me!
0:01:16 > 0:01:18And at this property in Sunderland,
0:01:18 > 0:01:21the wallpaper is enough to make you cross-eyed!
0:01:21 > 0:01:24Honestly, it is! If you stare at that for a minute, then come back,
0:01:24 > 0:01:26it's like wooh, woozy!
0:01:27 > 0:01:30All these properties were sold at auction, and we'll find out
0:01:30 > 0:01:34who bought them and what they paid when they went under the hammer.
0:01:34 > 0:01:36Well done, sold, thank you very much.
0:01:41 > 0:01:44Think of Liverpool and what comes to mind?
0:01:44 > 0:01:47The Beatles, Ian Rush or Steven Gerrard, perhaps.
0:01:47 > 0:01:50Or maybe it's national treasure Cilla Black.
0:01:50 > 0:01:53But today, I'm here to look at a property
0:01:53 > 0:01:56which harks back to the city's industrial past.
0:01:56 > 0:02:01This is Bootle, about four miles outside Liverpool city centre.
0:02:01 > 0:02:05Once a thriving area, partly down to the shipbuilding industry.
0:02:05 > 0:02:10In fact, at one point, over 30,000 dockers had their homes here.
0:02:12 > 0:02:14About 90% of the properties in Bootle were damaged
0:02:14 > 0:02:16during heavy bombing in World War II.
0:02:16 > 0:02:21But this row of terraces appears to have stood the test of time.
0:02:21 > 0:02:24# I'm still standing Yeah, yeah, yeah... #
0:02:26 > 0:02:30Nowadays, the area is really popular with people looking to rent,
0:02:30 > 0:02:33so it's attracting lots of landlords and investors,
0:02:33 > 0:02:36and the property I'm here to see sounds like it might be ideal.
0:02:36 > 0:02:40Three bedrooms, mid-terrace and a guide price of just £39,000.
0:02:40 > 0:02:43This is it. Let's take a look.
0:02:45 > 0:02:49I know three-bedroomed houses here can go for twice that guide price.
0:02:49 > 0:02:52From the outside, it looks pretty solid,
0:02:52 > 0:02:56so what exactly might you get for 39,000?
0:02:56 > 0:03:00So for that amount of money, I have to say I am not expecting much,
0:03:00 > 0:03:02but straight through the front door,
0:03:02 > 0:03:07and I reckon this is a fantastic find. I love this kind of house.
0:03:07 > 0:03:10It's solid, it's got lots of space.
0:03:10 > 0:03:12You come in through the front door, a little corridor,
0:03:12 > 0:03:15this front living room area here with a big sort of semi-bay window
0:03:15 > 0:03:18throwing lots of light. Slightly less light at the back,
0:03:18 > 0:03:21cos the window has actually been boarded up.
0:03:21 > 0:03:23But you can imagine a really nice fireplace in here,
0:03:23 > 0:03:25and the open-plan feel you get
0:03:25 > 0:03:28from this being opened up to a large archway is superb.
0:03:28 > 0:03:31Under the stairs, a little cupboard. And through to another room -
0:03:31 > 0:03:34it's the kitchen. Will it be a disappointment?
0:03:34 > 0:03:37Is it going to be tiny? No, no, no! Look at it! It's fantastic!
0:03:37 > 0:03:40Yes, it needs complete refurbishment,
0:03:40 > 0:03:43but how much space have you got to play with here? I love it!
0:03:43 > 0:03:49# I'm in a wide-open space... #
0:03:51 > 0:03:54Clearly, there's work to do to freshen this place up,
0:03:54 > 0:03:55including double-glazing.
0:03:55 > 0:03:58I'd get rid of the polystyrene tiles on the ceiling too,
0:03:58 > 0:04:00not least because they're a fire hazard.
0:04:00 > 0:04:04But there are no major alarm bells ringing so far.
0:04:04 > 0:04:08Well, upstairs and the cavernous nature of the property continues.
0:04:08 > 0:04:11We've got a bedroom at the back of the property,
0:04:11 > 0:04:14a good-sized bathroom upstairs where it should be.
0:04:14 > 0:04:17Front bedroom is a really nice size.
0:04:17 > 0:04:19And through into the third bedroom.
0:04:19 > 0:04:24Now, the whole house is clearly in need of a bit of tender loving care.
0:04:24 > 0:04:26Bits and pieces of plaster falling off.
0:04:26 > 0:04:28So, when you're considering this kind of house,
0:04:28 > 0:04:31what do you have to do? Well, new electrics while you're on to it.
0:04:31 > 0:04:34You'll have to do the plasterwork, check for damp-proofing,
0:04:34 > 0:04:36check that the roof is OK.
0:04:36 > 0:04:39Add all of that together, I reckon refurbishment of this,
0:04:39 > 0:04:41about £10,000 to £12,000.
0:04:41 > 0:04:44And you'd end up with the most beautiful property.
0:04:44 > 0:04:46And as an added bonus, there's even a rear yard.
0:04:48 > 0:04:50OK, so the yard needs a good tidy,
0:04:50 > 0:04:54but I reckon there's a healthy profit to be made here
0:04:54 > 0:04:59if you could pick this one up for around that guide price of £39,000.
0:04:59 > 0:05:01We asked a local property expert
0:05:01 > 0:05:05to have a look around and give us his thoughts.
0:05:05 > 0:05:08It's a good-sized three-bedroomed terraced house.
0:05:08 > 0:05:11A little bit of damage to some of the windows,
0:05:11 > 0:05:13but just all superficial, cosmetic,
0:05:13 > 0:05:15so quite a cheap refurbishment project.
0:05:17 > 0:05:19Once done up, what kind of rental income
0:05:19 > 0:05:21might this mid-terrace achieve?
0:05:22 > 0:05:26I think the rental figure would be about £500 per calendar month.
0:05:26 > 0:05:30Maybe even up to £550, because the rental market is so buoyant.
0:05:32 > 0:05:35What if the purchaser were to do it up
0:05:35 > 0:05:37and put the property on the resale market?
0:05:37 > 0:05:41Once the property is refurbished,
0:05:41 > 0:05:44it's likely to achieve £75,000-£85,000.
0:05:44 > 0:05:45A great house.
0:05:45 > 0:05:48It needs a bit of refurbishment, but a great opportunity.
0:05:48 > 0:05:50Let's see who agreed when it went under the hammer.
0:05:54 > 0:05:5734. It's a large, vacant two-storey mid-terraced,
0:05:57 > 0:05:59that's a three-bedroom there, lot 34.
0:05:59 > 0:06:02Bid me 40,000. It's cheap. 40 straight in.
0:06:02 > 0:06:06I'll take 42 if you want. At 40,000.
0:06:06 > 0:06:0841 if you want. At 40,000.
0:06:08 > 0:06:11It's going to be sold at 40. Are you all finished at 40?
0:06:11 > 0:06:1341, 42.
0:06:13 > 0:06:1543, 44.
0:06:15 > 0:06:1943 then. 43 seated.
0:06:19 > 0:06:2243,000. Anyone else? At 43.
0:06:22 > 0:06:27Going once at 43,000. Going twice at 43,000.
0:06:27 > 0:06:3044 here. 45. 45, sir, with the smile.
0:06:30 > 0:06:32Nice to see you smiling as you're spending money!
0:06:32 > 0:06:3545, 46. 47 now.
0:06:35 > 0:06:3846 over here, 47 with you. 48, sir.
0:06:40 > 0:06:44It's 47 this side of the room. At 47, the bid's in front of me here.
0:06:44 > 0:06:48At 47,000, any advance on 47 for the first time?
0:06:49 > 0:06:5147,000 for the second time.
0:06:53 > 0:06:55All finished on this one at £47,000,
0:06:55 > 0:06:58the hammer is up now at £47,000.
0:07:01 > 0:07:03Thank you, sir.
0:07:03 > 0:07:08That successful bid of £47,000 was made by semi-retired Nigel,
0:07:08 > 0:07:12on behalf of his mother-in-law, Jo.
0:07:12 > 0:07:13# I know it's all in the family
0:07:16 > 0:07:18# Blood is thicker than water... #
0:07:19 > 0:07:21Their plan is to do the property up
0:07:21 > 0:07:24and use it to generate an income for Jo.
0:07:29 > 0:07:31I met them back at the mid-terrace to find out more.
0:07:33 > 0:07:36- Jo! Nigel! Lovely to meet you both. - Thank you, nice to meet you.
0:07:36 > 0:07:41Congratulations. Tell me why you wanted to buy this place.
0:07:41 > 0:07:47Well, I sold my house in Bowden... my husband died.
0:07:47 > 0:07:51And I decided, with my son-in-law's help,
0:07:51 > 0:07:55to put the money into property rather than into a bank.
0:07:55 > 0:07:58- Right. - So, it really was as simple as that.
0:07:58 > 0:08:01And Nigel was already doing property anyway.
0:08:01 > 0:08:03He bought...I think it was four houses
0:08:03 > 0:08:06and done them up very beautifully.
0:08:06 > 0:08:08So it seemed an exciting idea.
0:08:08 > 0:08:11That's how it all started.
0:08:11 > 0:08:13With a view to doing them up and selling them on
0:08:13 > 0:08:16- or with a view to renting them out? - I am intending to rent mine.
0:08:16 > 0:08:18I think, Nigel...
0:08:18 > 0:08:24I started out in this business with the idea of buying to do them up
0:08:24 > 0:08:25and sell the houses.
0:08:25 > 0:08:29But I ended up renting one house and found that it worked out
0:08:29 > 0:08:31- really quite well.- Right.
0:08:31 > 0:08:34I subsequently bought more and that's what I've done.
0:08:34 > 0:08:37So what about where you're living now, have you got a new house?
0:08:37 > 0:08:41No. No. Actually, when my husband died, he was in hospital
0:08:41 > 0:08:44- and he died in hospital... - I'm sorry. - ..and at that point, I was staying
0:08:44 > 0:08:50with my daughter and with Nigel, and it just, I just never went home!
0:08:50 > 0:08:53THEY LAUGH So she's moved in with us.
0:08:53 > 0:08:55That's excellent!
0:08:55 > 0:08:59That arrangement suits them all very well.
0:08:59 > 0:09:03With Jo's house let out, it soon became clear that if she sold
0:09:03 > 0:09:07her house instead, and invested in properties better suited to the rental market,
0:09:07 > 0:09:11she could get a much better return on her money.
0:09:11 > 0:09:13So, do you know this area?
0:09:13 > 0:09:15And if not, why pick this particular area?
0:09:15 > 0:09:18I don't know it at all. Nigel did, because...
0:09:18 > 0:09:22I know it well. I used to work not too far away from here and, in fact,
0:09:22 > 0:09:27I have one of my properties, it's just three roads away.
0:09:27 > 0:09:30- So it made perfect sense to look for more.- Right.
0:09:30 > 0:09:32And this is one of two,
0:09:32 > 0:09:36the other one being opposite that came up at auction at the same time.
0:09:36 > 0:09:38An absolutely perfect management situation -
0:09:38 > 0:09:40do them both up together, rent them both together,
0:09:40 > 0:09:43and then we've got three in very close proximity.
0:09:43 > 0:09:46- So you've bought another one across the road?!- Yes.- Right!- Indeed!
0:09:48 > 0:09:51Two properties on the same street bought by the same person
0:09:51 > 0:09:54at the same auction. All very efficient.
0:09:54 > 0:09:56If you're going to build a portfolio,
0:09:56 > 0:10:00keeping your properties close together does make a lot of sense.
0:10:01 > 0:10:05- So, tell me what you're going to do to the house.- Everything.
0:10:05 > 0:10:06THEY LAUGH
0:10:06 > 0:10:10Actually, this is the first time we've walked around
0:10:10 > 0:10:13and said we need to do this and we need to do that.
0:10:13 > 0:10:17But Nigel has already made plans. You've been here, haven't you?
0:10:17 > 0:10:19Yes, I've been a few times.
0:10:19 > 0:10:22The kitchen needs to be completely redone, as does the bathroom.
0:10:22 > 0:10:24All the wallpaper will be stripped.
0:10:24 > 0:10:27Where necessary, it'll be completely re-plastered.
0:10:27 > 0:10:31My philosophy has been to do it slightly better than the normal
0:10:31 > 0:10:36rental market demands, in order that we don't have any void periods.
0:10:36 > 0:10:40Keep the tenant happy, keep giving them something that they will
0:10:40 > 0:10:44- appreciate, and, in turn, hopefully they will appreciate us.- Right, OK,
0:10:44 > 0:10:47and make it a nice quality property that they will look after it.
0:10:47 > 0:10:51Yes, so we will probably spend more than you would think we ought to.
0:10:52 > 0:10:55In fact, they've got a generous budget of £16,000-£18,000
0:10:55 > 0:10:59and a timescale of around three months.
0:10:59 > 0:11:01They also hope to replicate the refurbishment with their other
0:11:01 > 0:11:07£43,000 purchase across the road which they bought sight unseen.
0:11:08 > 0:11:11We weren't actually able to look around it prior to the auction,
0:11:11 > 0:11:14because it had been boarded up and the agent couldn't give us access.
0:11:14 > 0:11:17How is it now you've had a look around?
0:11:17 > 0:11:21Well, actually, it will overall slightly cost us
0:11:21 > 0:11:24- less to do that property up than this.- Wow!
0:11:24 > 0:11:26And it cost us less at auction,
0:11:26 > 0:11:29because everybody was that little bit more nervous about it.
0:11:29 > 0:11:31- So...- That's interesting.
0:11:31 > 0:11:34We took a little bit of a gamble, but I think it's paid off well.
0:11:34 > 0:11:37Well, you're gambling with your mother-in-law's money!
0:11:37 > 0:11:40- This is true, yes!- That's the best gamble, isn't it?!
0:11:40 > 0:11:44Much easier than with your own! But I treated it as though it was my own.
0:11:44 > 0:11:45Yes.
0:11:45 > 0:11:49Let's hope that the gamble continues to pay off,
0:11:49 > 0:11:53because with Nigel's help, Jo hopes to build her portfolio
0:11:53 > 0:11:58up to five properties, giving her a steady rental income.
0:11:58 > 0:12:02And she doesn't intend to take a back seat with the renovation either.
0:12:02 > 0:12:07So what's your involvement in the ongoing restoration going to be?
0:12:07 > 0:12:13I shall come up with ideas. Nigel, I will say, well, are they workable
0:12:13 > 0:12:19or not? Nigel's the brains, I have to say that, and he manages it all.
0:12:19 > 0:12:22But you'll have an input for sure?
0:12:22 > 0:12:25Well, yes, because I love houses, and, you know, this is why
0:12:25 > 0:12:29I watch your programme so much, because I enjoy what's happening
0:12:29 > 0:12:32and seeing a sort of nothing situation
0:12:32 > 0:12:36and, at the end of it, a really lovely situation.
0:12:36 > 0:12:40- We're hoping to do that here. - We are indeed. I'm sure we will.
0:12:40 > 0:12:43Well, good luck with this and other ones you're
0:12:43 > 0:12:47embarking on, and we look forward to seeing how you transform the place.
0:12:47 > 0:12:48- Thank you. - Thank you very much indeed.
0:12:48 > 0:12:53Well, it is almost like Jo and Nigel have got two houses
0:12:53 > 0:12:55for the price of one - the one across the road and this one
0:12:55 > 0:12:58that we're going to look forward to seeing how they get on refurbishing.
0:12:58 > 0:13:01It's a superb property, and with a bit of tender loving care
0:13:01 > 0:13:05and that extra bit of cash they'll put into it, I can't wait.
0:13:05 > 0:13:08You can find out how they get on later in the show.
0:13:13 > 0:13:18This is Twickenham in Greater London, north of Royal Hampton Court
0:13:18 > 0:13:22and just a few minutes' drive from rather lovely Richmond-upon-Thames.
0:13:22 > 0:13:26This part of the world is all gloriously gentrified and full
0:13:26 > 0:13:30of families, as well as being home to English rugby at Twickenham Stadium.
0:13:30 > 0:13:31Question is, of course,
0:13:31 > 0:13:36will I have to TRY very hard to find a property bargain?!
0:13:37 > 0:13:40This part of Twickenham is called Strawberry Hill
0:13:40 > 0:13:44after Horace Walpole's Gothic mansion, Strawberry Hill House.
0:13:53 > 0:13:57But will today's auction lot there be worth a punnet
0:13:57 > 0:14:00or will it just get you in a jam?
0:14:00 > 0:14:05The property I'm here to see shares the castle's lovely location,
0:14:05 > 0:14:09but it was built in the 1970s and is a little less extravagant.
0:14:09 > 0:14:12It's a four-bed terrace on this nicely kept estate
0:14:12 > 0:14:17and it had a guide price of £375,000.
0:14:17 > 0:14:22It's an unusual property for this area, but the street as well kept.
0:14:22 > 0:14:25From the outside, the house appears very promising.
0:14:25 > 0:14:29There's an integral garage thrown in, so on first impressions,
0:14:29 > 0:14:30it's looking good.
0:14:34 > 0:14:37Doesn't really feel like a proper front door.
0:14:37 > 0:14:40It also doesn't feel very solid, this house.
0:14:40 > 0:14:46The kitchen is extremely disappointing, really small,
0:14:46 > 0:14:48even smaller downstairs loo, but at least you've got one,
0:14:48 > 0:14:53so I suppose that is a bonus. And just the one reception room.
0:14:53 > 0:14:58There's not too much going on in here, not bad for space.
0:14:58 > 0:15:02You've got some parquet flooring. Now, personally, I'm not a huge fan.
0:15:02 > 0:15:05It's got real sort of orangey overtones.
0:15:05 > 0:15:08But there is stuff you can do to it to bring it up-to-date
0:15:08 > 0:15:10a little bit more. I actually sanded mine
0:15:10 > 0:15:12and then whitewashed it and gave it
0:15:12 > 0:15:16that sort of Swedish feel, and it ended up really lifting the room.
0:15:16 > 0:15:18You've got double doors leading out to the garden.
0:15:18 > 0:15:20Not a terribly huge garden,
0:15:20 > 0:15:24but you have got extended living space in the summer months.
0:15:24 > 0:15:29That's all I can say, really. A bit characterless, but a great location.
0:15:30 > 0:15:35Upstairs in this house, guided at £375,000, there are four bedrooms -
0:15:35 > 0:15:39two doubles and two singles. The doubles are a decent size,
0:15:39 > 0:15:43but one of the singles at the rear, well, it's tiny.
0:15:43 > 0:15:47The bathroom needs a complete overhaul - it's small
0:15:47 > 0:15:50and an awkward shape.
0:15:50 > 0:15:55But that's not the only thing worrying me about this place.
0:15:55 > 0:15:58Now, I'm used to seeing three-bedroomed houses
0:15:58 > 0:16:01with two good-sized doubles and one smaller box room.
0:16:01 > 0:16:03That's kind of to be expected,
0:16:03 > 0:16:08but a four-bed with two singles, it doesn't make much sense to me,
0:16:08 > 0:16:12considering you're struggling for living space downstairs!
0:16:12 > 0:16:15I don't feel there's a need for four bedrooms up here.
0:16:15 > 0:16:18Half of them will look really quite tiny.
0:16:18 > 0:16:21Personally, I would look to do a bit of a rejig.
0:16:21 > 0:16:25For example, how about knocking down this wall here to make
0:16:25 > 0:16:28a lovely big master?
0:16:28 > 0:16:31Now, this might make for a roomier living situation,
0:16:31 > 0:16:33but I would check with the local agents first,
0:16:33 > 0:16:37because it might not be a case of the bigger the better here.
0:16:37 > 0:16:39And you don't want to rejig the whole layout,
0:16:39 > 0:16:42only to knock money off the value.
0:16:42 > 0:16:45# You and me and me and you
0:16:45 > 0:16:48# In my little room... #
0:16:48 > 0:16:52It shouldn't cost the earth to knock these two rooms together,
0:16:52 > 0:16:54if you want to go down that route.
0:16:54 > 0:16:57But if you'd like to change the layout downstairs,
0:16:57 > 0:17:00you've got to think outside the box.
0:17:00 > 0:17:02Right, so there's no room to extend,
0:17:02 > 0:17:05so how can we create space inside?
0:17:05 > 0:17:08Ah! This is your garage.
0:17:08 > 0:17:10Now, since there are no parking restrictions out here,
0:17:10 > 0:17:12I think sacrifice the garage,
0:17:12 > 0:17:14which most people use for storage anyway,
0:17:14 > 0:17:16and turn that space into your kitchen.
0:17:16 > 0:17:19Most houses on the terrace have done exactly that.
0:17:19 > 0:17:23And I can see why. It's a lot of wasted square footage,
0:17:23 > 0:17:26and while it might not add much value to your house,
0:17:26 > 0:17:30it would add a lot in terms of quality of your living space.
0:17:30 > 0:17:33So I reckon you should turn the existing kitchen
0:17:33 > 0:17:37into a utility area or a study, maybe.
0:17:37 > 0:17:40And knock the garage through to create a new kitchen.
0:17:40 > 0:17:44We asked a local estate agent to take a look around and tell us
0:17:44 > 0:17:49what he thought the options were for this mid-terrace in Twickenham.
0:17:49 > 0:17:53I'd open the kitchen up into the garage to make the kitchen larger.
0:17:53 > 0:17:55On the first floor, I'd definitely keep the bedrooms as they are.
0:17:55 > 0:17:58Four bedrooms are really hard to come by,
0:17:58 > 0:18:00so making it three would be a big mistake.
0:18:00 > 0:18:04Once the house has been refurbished with the new, bigger kitchen,
0:18:04 > 0:18:06how much rental income could it generate?
0:18:06 > 0:18:10For renting the property in good condition,
0:18:10 > 0:18:12it should be in the region of about £2,200 per calendar month
0:18:12 > 0:18:15to £2,300 per calendar month.
0:18:15 > 0:18:19What about the resale value of the refurbished property?
0:18:19 > 0:18:23If you've done a really, really good job, at least £500,000.
0:18:23 > 0:18:27And maybe £550,000 if it's particularly special.
0:18:27 > 0:18:30It's not a Strawberry Hill spectacular, but this house
0:18:30 > 0:18:34is a solid investment in an area that families are dying to move to.
0:18:34 > 0:18:37And while there's a bit to do to make the most of it,
0:18:37 > 0:18:39you've got scope to add value,
0:18:39 > 0:18:42and that really is what developing is all about.
0:18:42 > 0:18:45Let's see who went for it at the auction.
0:18:46 > 0:18:48Move over to Twickenham now,
0:18:48 > 0:18:50well-located four-bedroomed mid-terraced house.
0:18:50 > 0:18:52Anyone like to kick off on this?
0:18:53 > 0:18:54305.
0:18:54 > 0:18:59310. 310, 315. 315.
0:18:59 > 0:19:02320. 320. 325.
0:19:02 > 0:19:05330. 330.
0:19:05 > 0:19:08335. 340. 345.
0:19:08 > 0:19:13The bidding crept up over the 375,000 guide price and looked
0:19:13 > 0:19:17as if it had come down to being between two interested parties.
0:19:17 > 0:19:20392. 393.
0:19:21 > 0:19:24394. 395.
0:19:26 > 0:19:31396, 397. 398.
0:19:31 > 0:19:36399. 400. 401.
0:19:36 > 0:19:39402. Have a think.
0:19:39 > 0:19:42401. 402. Back in?
0:19:43 > 0:19:47402 at the back. Might be near their limit.
0:19:47 > 0:19:49402. 403, madam.
0:19:49 > 0:19:52404.
0:19:52 > 0:19:58403, with the lady. 403, first time, second time.
0:19:58 > 0:20:00Third and last time if you're all done.
0:20:01 > 0:20:05Sold, 403, to you, madam.
0:20:05 > 0:20:09That final successful bid of £403,000 was made by local couple
0:20:09 > 0:20:13Pamela and Bill, and I met them back at their new purchase,
0:20:13 > 0:20:16along with their very gorgeous dog, Georgie.
0:20:16 > 0:20:19# Hey there, Georgie girl... #
0:20:23 > 0:20:27Pamela works as a recruitment consultant and has done a course
0:20:27 > 0:20:31in interior design, and Bill has worked in the building trade for 40 years.
0:20:31 > 0:20:34I wanted to hear all about their plans.
0:20:35 > 0:20:37- Congratulations.- Thank you.
0:20:37 > 0:20:40- I bet you're chuffed to bits you've got this property!- Yes.
0:20:40 > 0:20:42Now, why did you want to buy this house?
0:20:42 > 0:20:46Well, couple of reasons... it's a really nice family house.
0:20:46 > 0:20:48It's a great area.
0:20:48 > 0:20:54And I think it's got a lot of potential for a really super house.
0:20:54 > 0:20:57So have you bought this as an investment or for you to live in?
0:20:57 > 0:20:59I think we've bought it as an investment.
0:20:59 > 0:21:02We're not sure whether to rent it or sell it.
0:21:02 > 0:21:04But there is also the option we might want to move in
0:21:04 > 0:21:08and rent our other house, because it's such a nice house.
0:21:08 > 0:21:11Terribly dated, but it's got potential.
0:21:11 > 0:21:14- So, Pamela, how well do you know the area?- Pretty well.
0:21:14 > 0:21:17We live in Teddington, so, yes, we know it.
0:21:17 > 0:21:19And in fact our niece lives about eight doors down.
0:21:19 > 0:21:22- So you actually know this close? - Yes! We do!
0:21:22 > 0:21:26So when we saw it in the catalogue, we thought, this is it.
0:21:26 > 0:21:29This is the one for us. It had the right vibe.
0:21:29 > 0:21:31# I'm picking up good vibrations... #
0:21:31 > 0:21:35Good vibrations are really important when you buy a house
0:21:35 > 0:21:38to live in yourself or to refurbish and sell on.
0:21:38 > 0:21:42Bill is an experienced builder and property developer and has already
0:21:42 > 0:21:46spotted the potential to convert the garage into a new bigger kitchen.
0:21:49 > 0:21:52There's going to be a utility room in the existing kitchen,
0:21:52 > 0:21:55plus a study area, because it's a family house.
0:21:55 > 0:21:58Double doors into the kitchen, so that'll open it up,
0:21:58 > 0:22:00and we'll get light from the kitchen window into the hallway,
0:22:00 > 0:22:02- so it'll seem bigger. - It'll really open it up.
0:22:02 > 0:22:04And you'll be able to see into other rooms.
0:22:04 > 0:22:06It'll give the illusion of a lot more space.
0:22:06 > 0:22:09Exactly, and the toilet, there's not much you can do about it,
0:22:09 > 0:22:14- the ground floor WC.- Mirrors.- Mirrors will enhance it.- Works wonders.
0:22:14 > 0:22:17What will you do with that parquet flooring? Some people love it,
0:22:17 > 0:22:19some hate it, it depends which camp you're in.
0:22:19 > 0:22:22Personally, the camp I'm in is that it dates it.
0:22:22 > 0:22:26This house was built in 1972, and I think it takes it right there.
0:22:26 > 0:22:28And some people, at the moment, that's really in,
0:22:28 > 0:22:31but I don't think that's the look we're going for.
0:22:31 > 0:22:34We're going to really base it on a more contemporary style,
0:22:34 > 0:22:35so I don't think it'll be staying.
0:22:37 > 0:22:40So, the parquet won't survive, although upstairs,
0:22:40 > 0:22:43they plan to leave the four bedrooms as they are, but they'll gain
0:22:43 > 0:22:48some valuable space in the bathroom by removing the airing cupboard.
0:22:48 > 0:22:50They've got a budget of £30,000-£35,000,
0:22:50 > 0:22:53and a team in place to do the work in 8 to 10 weeks.
0:22:53 > 0:22:57Pam will focus on the interior design, but what about Bill?
0:22:59 > 0:23:02- I used to be hands-on. I'm not hands-on any more.- A long time ago.
0:23:02 > 0:23:05You project-managed, but now he's going to project-manage me.
0:23:05 > 0:23:08- And you're going to be hands-on! - Yes!
0:23:08 > 0:23:10Yes, I've got Pamela a nice hardhat and a club hammer
0:23:10 > 0:23:13and some kneepads, and say go for it, girl.
0:23:13 > 0:23:16Well, good luck with that, Pam,
0:23:16 > 0:23:19but this duo do look set to add value here.
0:23:19 > 0:23:22I'm very excited to see what it's like at the end result.
0:23:22 > 0:23:23- Can't wait to see it.- Good.
0:23:23 > 0:23:26- Thank you for chatting with me today.- Our pleasure.
0:23:26 > 0:23:28It's been lovely meeting you both. Thank you.
0:23:28 > 0:23:30- Well done, congratulations. - Thank you very much.
0:23:30 > 0:23:35This is a project for Bill to indulge his passion for property,
0:23:35 > 0:23:38and I can't wait to see how they transform the house.
0:23:38 > 0:23:42Out with the parquet and in with the practical living space
0:23:42 > 0:23:44and very modern feel! Fantastic!
0:23:44 > 0:23:48Join us later in the programme to see this '70s house transformed.
0:23:49 > 0:23:52Coming up, in South Hylton, Sunderland,
0:23:52 > 0:23:56this auction lot proves much bigger than I anticipated.
0:23:56 > 0:23:58It's huge!
0:23:59 > 0:24:05In Twickenham, Bill has had heaps of clearing up to do.
0:24:05 > 0:24:09You end up doing six or seven skips, and the rubbish is never-ending.
0:24:12 > 0:24:15But first, in Bootle, Jo has been checking up on her son-in-law.
0:24:15 > 0:24:18We've had one visit so that she can make sure she was happy,
0:24:18 > 0:24:20which she was, thank goodness.
0:24:23 > 0:24:25Back now to Bootle on Merseyside,
0:24:25 > 0:24:29to see how things are going at this three bed mid-terrace which Nigel
0:24:29 > 0:24:36bought at auction on behalf of his mother-in-law, Jo, for £47,000.
0:24:36 > 0:24:40The plan was to generate a rental income to supplement Jo's pension.
0:24:40 > 0:24:45- So, tell me what you're going to do to the house?- Everything!- Right!
0:24:45 > 0:24:48Well, actually, this is the first time we walked around it
0:24:48 > 0:24:51and said we need to do this and we need to do that.
0:24:51 > 0:24:54My philosophy has been to do it slightly better than
0:24:54 > 0:24:58the normal rental market demands and keep the tenant happy,
0:24:58 > 0:25:02keep giving them something that they will appreciate.
0:25:03 > 0:25:06They gave themselves a budget of £16,000-£18,000
0:25:06 > 0:25:09and three months to turn things around.
0:25:09 > 0:25:12Well, five months after our first visit,
0:25:12 > 0:25:14we're back to see how it's all gone.
0:25:30 > 0:25:33Wow, Nigel said he was going to go the extra mile on this one
0:25:33 > 0:25:36and he certainly has.
0:25:36 > 0:25:41The whole place has been replastered and redecorated, and the new kitchen looks much better.
0:25:42 > 0:25:45We completely changed it.
0:25:45 > 0:25:49We've actually taken some space off the length of it in order
0:25:49 > 0:25:51to put a downstairs toilet.
0:25:51 > 0:25:53But we have changed the concept that here,
0:25:53 > 0:25:55we did have the door leading outside.
0:25:55 > 0:26:00We've instead put the window and made a galley-style kitchen
0:26:00 > 0:26:06and French doors out to the yard, which has yet to be enhanced.
0:26:06 > 0:26:11But we have tried to equip it completely in the modern style
0:26:11 > 0:26:14and we think it works quite well.
0:26:14 > 0:26:17The other change downstairs is that what was one big reception room
0:26:17 > 0:26:21has now become two rooms again. This is because Nigel
0:26:21 > 0:26:26and Jo have rethought how they're going to try and rent out the house.
0:26:26 > 0:26:31We started out with the idea of letting this as a family house,
0:26:31 > 0:26:36but we asked our lettings agent to come along and get a view,
0:26:36 > 0:26:39and he actually advised us to go instead for a four-bedroom
0:26:39 > 0:26:42professional let, so that's what we've done.
0:26:42 > 0:26:46The new layout, three bedrooms upstairs and one downstairs,
0:26:46 > 0:26:50works well for multiple occupancy,
0:26:50 > 0:26:52and because it's for fewer than five people in just
0:26:52 > 0:26:58a two-storey building, they don't need an HMO licence.
0:26:58 > 0:27:01The one big unforeseen was that the roof needed to be replaced.
0:27:01 > 0:27:05That meant that the three-month timescale slipped to five.
0:27:05 > 0:27:08Nigel has been here most days lending a hand.
0:27:08 > 0:27:13But what about his mother-in-law, Jo? Has she been hands-on too?
0:27:13 > 0:27:17We've had one visit so she could see it three-quarters done,
0:27:17 > 0:27:20to make sure she was happy, which she was, thank goodness.
0:27:20 > 0:27:22But, no, she's left it to me.
0:27:22 > 0:27:24Here we are.
0:27:24 > 0:27:27Good to hear that Nigel has met Jo's high standards.
0:27:27 > 0:27:31But how has all of the extra work, new roof, the fourth bedroom,
0:27:31 > 0:27:34affected their £16,000-£18,000 budget?
0:27:37 > 0:27:39We've increased the overall spend to about £25,000 -
0:27:39 > 0:27:41that includes legal fees, though.
0:27:41 > 0:27:46But that has allowed us to do the work that we have just talked about.
0:27:46 > 0:27:49And we believe it gives us a much better return.
0:27:49 > 0:27:53Well, it all comes down to how easily they can rent rooms out
0:27:53 > 0:27:56to professional tenants as planned.
0:27:56 > 0:28:00Their total spend on the project is £72,000.
0:28:00 > 0:28:03We asked along two local estate agents
0:28:03 > 0:28:05to get their take on the property.
0:28:05 > 0:28:08I think the property has been done to a very good standard.
0:28:08 > 0:28:10It's a good spacious property,
0:28:10 > 0:28:12and excellent that he's managed to get a downstairs toilet in
0:28:12 > 0:28:15and done a really nice job generally throughout the house.
0:28:15 > 0:28:18There would be two ways to actually rent this property,
0:28:18 > 0:28:22that would be the normal... to say one family,
0:28:22 > 0:28:24but you could always use the multi-let idea,
0:28:24 > 0:28:26which would be using four rooms.
0:28:26 > 0:28:28The problem with that is, you would make more money,
0:28:28 > 0:28:31but then it's a bit more difficult to let.
0:28:32 > 0:28:33That's an interesting point.
0:28:33 > 0:28:36If Jo and Nigel were to sell the property on,
0:28:36 > 0:28:39what might it fetch on the resale market?
0:28:39 > 0:28:43For sale, we would market this property at £84,950.
0:28:43 > 0:28:47And we would hope to achieve £80,000 plus.
0:28:47 > 0:28:48If you decide to sell the property,
0:28:48 > 0:28:52it would be in the region of £80,000-£85,000.
0:28:52 > 0:28:56A sale at 80,000 or 85,000 would give a gross profit
0:28:56 > 0:29:00of between £8,000 and £13,000, which isn't bad at all.
0:29:00 > 0:29:04Both estate agents agree that Nigel and Jo could rent the house out
0:29:04 > 0:29:08to a family for between £550 and £600 per month, but their plan
0:29:08 > 0:29:13is to let the four bedrooms to four separate professionals.
0:29:13 > 0:29:15What kind of income might that generate?
0:29:15 > 0:29:18If you did use the multi-let idea,
0:29:18 > 0:29:21you would probably get more in the region of £50 per week per room.
0:29:21 > 0:29:24Although I think it might be difficult around this area,
0:29:24 > 0:29:28you could possibly achieve £50-£60 per week per room.
0:29:28 > 0:29:32£50 per room per week equates to an income of £800 per month,
0:29:32 > 0:29:36which would be an amazing yield of 13%.
0:29:36 > 0:29:41And if they manage to get £60 per room per week, that would rise to 16%
0:29:41 > 0:29:45if they were able to fill the house with tenants all year round.
0:29:45 > 0:29:47But the rental market is strong here,
0:29:47 > 0:29:52so it does look like Nigel has invested Jo's money wisely.
0:29:52 > 0:29:55Those numbers stack perfectly with what we were hoping for,
0:29:55 > 0:29:57so I can go back very happily today.
0:29:57 > 0:30:00The house across the road is still a work in progress,
0:30:00 > 0:30:05but buoyed up by the success of this project, Nigel and Jo are planning
0:30:05 > 0:30:10to take on two more properties this year, so what is the secret
0:30:10 > 0:30:13to a smooth working relationship with your mother-in-law?
0:30:13 > 0:30:15Pick the right mother-in-law!
0:30:15 > 0:30:18I'm very, very fortunate that she is a bright lady
0:30:18 > 0:30:20and she likes a little bit of involvement,
0:30:20 > 0:30:24but nevertheless, lets me get on with it for the day-to-day running.
0:30:24 > 0:30:27I think that relationship would be very important.
0:30:30 > 0:30:34This is South Hylton, a suburb of Sunderland,
0:30:34 > 0:30:37situated on the banks of the Wear, as in Tyne and Wear.
0:30:37 > 0:30:39It's got its own Metro station,
0:30:39 > 0:30:43so you could be in the city centre within around 12 minutes.
0:30:43 > 0:30:46The property I'm here to see is actually two flats.
0:30:46 > 0:30:49The guide price was £30,000-£40,000. These are them.
0:30:49 > 0:30:53Let's start with the ground one first.
0:30:53 > 0:30:56£30,000-£40,000 doesn't sound like much for two properties,
0:30:56 > 0:31:00so that's either encouraging or a little worrying.
0:31:00 > 0:31:04The ground floor was once a shop, a facade clearly rebuilt
0:31:04 > 0:31:06and filled in at some point in the past.
0:31:06 > 0:31:10Well, two flats, but only one of me, so I better get cracking.
0:31:20 > 0:31:21Wow.
0:31:21 > 0:31:27That is WAY OUT THERE wallpaper, that's for sure!
0:31:27 > 0:31:28What have we got?
0:31:28 > 0:31:33Really nice sized space, if you can see through the interior decoration.
0:31:33 > 0:31:36I don't like the fact it's straight off the road into that.
0:31:36 > 0:31:39Probably think about putting a porch there of some sort,
0:31:39 > 0:31:43or at least a little entrance area, but it doesn't feel claustrophobic.
0:31:43 > 0:31:46A good-sized space, and then through here.
0:31:46 > 0:31:48But I have to say, don't adjust your sets.
0:31:48 > 0:31:50HE LAUGHS
0:31:50 > 0:31:54Look at this! Doesn't it make your eyes go all fuzzy!
0:31:54 > 0:31:58Who would put...? Honestly, it is, if you stare at that for a minute,
0:31:58 > 0:32:02then come back! Oh, woozy! Who would put that on the walls?!
0:32:02 > 0:32:06If you've got wallpaper like this on your walls, I apologise, but wow!
0:32:06 > 0:32:11Rear area here which is basically, I guess it's your sitting room,
0:32:11 > 0:32:14bedroom, bit of weird space. I don't know.
0:32:14 > 0:32:18There's a kitchen there, there's a loo - which doesn't half pong -
0:32:18 > 0:32:20and a little shower room there.
0:32:20 > 0:32:24And then this area here, which I suppose, is your bedroom.
0:32:24 > 0:32:27And that's what you've got, door out onto a little rear courtyard there.
0:32:27 > 0:32:33Apart from that, wow, yes, psychedelic, crazy, little flat.
0:32:34 > 0:32:38If the wallpaper doesn't give you a headache,
0:32:38 > 0:32:42trying to rethink the layout here probably will. For me,
0:32:42 > 0:32:44it's just not working at the moment.
0:32:44 > 0:32:46But one flat down and one to go.
0:32:46 > 0:32:49I wonder if the second one will also be a bit of a mindbender?!
0:32:51 > 0:32:55Oh, now, that's a bit more like it. Fantastic.
0:32:55 > 0:32:59Adjoining that flat is this property.
0:32:59 > 0:33:03Originally, linked via this door, which has now been blocked up.
0:33:03 > 0:33:05And a bit of the history, that was a commercial unit
0:33:05 > 0:33:08that was used by the people who lived in this part of the building.
0:33:08 > 0:33:11And this has a much nicer feel to it.
0:33:11 > 0:33:14Big, high ceilings, lots of original features.
0:33:14 > 0:33:17Yes, very tired and dated,
0:33:17 > 0:33:21but this is much more exciting.
0:33:21 > 0:33:24Sadly, the further into the property you get,
0:33:24 > 0:33:27the less exciting it becomes.
0:33:27 > 0:33:29This would have been the kitchen
0:33:29 > 0:33:32and, as you can see, it's not in a very good state at all.
0:33:32 > 0:33:34Although I do again like the really high ceilings
0:33:34 > 0:33:38and you could certainly do something with this space. Kitchen here,
0:33:38 > 0:33:40sort of an ancillary room towards the end of the property there.
0:33:40 > 0:33:42Any positives?
0:33:42 > 0:33:45Only positive as far as I can see is that, of course,
0:33:45 > 0:33:48once you've bought the place, you get all the contents,
0:33:48 > 0:33:51which does include this rather enticing looking fruit machine.
0:33:51 > 0:33:55Is it bad enough to cancel the project? Would you hold onto it?
0:33:55 > 0:33:57Gamble it'll pay off?
0:33:57 > 0:34:00But no, all in all, I think I'd still take it.
0:34:00 > 0:34:04A gamble it may be, but by the looks of it,
0:34:04 > 0:34:07there's quite a lot to this second flat,
0:34:07 > 0:34:10so onwards and upwards.
0:34:10 > 0:34:14Wow. This is incredible. Look at the height of the ceilings. Again!
0:34:14 > 0:34:17You've got a little roof light there
0:34:17 > 0:34:20to let lots of natural light down into the stairwell.
0:34:20 > 0:34:24But what have we got?! Lots of stairs going back here.
0:34:24 > 0:34:29A bathroom there and then that looks like it was used as the kitchen,
0:34:29 > 0:34:33which is a bit unusual. I'd probably want to put that back downstairs
0:34:33 > 0:34:34and have that as a bedroom,
0:34:34 > 0:34:38but I like all this quirkiness, all these different levels.
0:34:38 > 0:34:40You've got another loo there.
0:34:40 > 0:34:44And up the stairs to, well, another little annexe.
0:34:44 > 0:34:48An interesting quirky little staircase leading
0:34:48 > 0:34:52goodness knows where, and then more bedrooms here. It's huge!
0:34:53 > 0:34:58And the first bedroom is a good size, but the second is quite small.
0:35:00 > 0:35:02The living room could be a gorgeous space.
0:35:02 > 0:35:06It's still got the original fireplace with the surround intact,
0:35:06 > 0:35:08and that window is fabulous.
0:35:08 > 0:35:10Then up on the next floor,
0:35:10 > 0:35:14there's another great size room that is the attic area.
0:35:14 > 0:35:17Again, loads of space to play with.
0:35:17 > 0:35:20I think this two bed has got the potential to become
0:35:20 > 0:35:22a sizeable three-bedroom home
0:35:22 > 0:35:28with a separate little rental investment downstairs thrown in for luck.
0:35:28 > 0:35:31The flats also have shared outdoor space at the back
0:35:31 > 0:35:34which is a real bonus.
0:35:34 > 0:35:39At a guide price of £30,000-£40,000, it all seems like a great deal,
0:35:39 > 0:35:44but we asked a local property expert along to see if he agreed.
0:35:44 > 0:35:48Really big property, it does need extensive refurbishment throughout,
0:35:48 > 0:35:52but the potential is astounding, really, because of the size.
0:35:52 > 0:35:57Once renovated, what could the lower flat achieve on the current market?
0:35:57 > 0:36:00I could estimate that it would be valued
0:36:00 > 0:36:03in the region of £55,000-£60,000.
0:36:03 > 0:36:08- And the upper flat?- If we kept this unit, extensively redeveloped etc,
0:36:08 > 0:36:12good condition, I could imagine the price reaching around £90,000.
0:36:12 > 0:36:18In today's climate, how much do flats rent out for around here?
0:36:18 > 0:36:20Per calendar month,
0:36:20 > 0:36:25a one-bedroom apartment would reach a return of around £350-£375.
0:36:25 > 0:36:27For a two-bedroom apartment,
0:36:27 > 0:36:30you are looking to increase that up to about £450.
0:36:30 > 0:36:34Well, a bit of a turn up for the books this particular lot.
0:36:34 > 0:36:37Slightly disappointing when you go into that first flat,
0:36:37 > 0:36:40but come in here and wow, what a fantastic opportunity.
0:36:40 > 0:36:44And great to have two units so close by, it makes looking after them
0:36:44 > 0:36:47so much easier. Lots of money to be made on this one, I think.
0:36:47 > 0:36:50Let's see who spotted the opportunity
0:36:50 > 0:36:51when it went under the hammer.
0:36:53 > 0:36:57So, you've got a one-bedroom ground floor flat
0:36:57 > 0:36:58and a two-bedroom first floor.
0:36:58 > 0:37:01I'd like to really start this at £40,000.
0:37:01 > 0:37:04Oh, put your hands up, someone! 30 then. I've got 30.
0:37:04 > 0:37:06Yes, got to be worth 32 then.
0:37:06 > 0:37:0832. 34. 36.
0:37:08 > 0:37:1238. And 40. And 41.
0:37:12 > 0:37:1542. 43.
0:37:15 > 0:37:1744. 45. 46.
0:37:17 > 0:37:2147. 46,500. 47.
0:37:21 > 0:37:24No? At 46,500. 47.
0:37:24 > 0:37:2647 on the wall.
0:37:26 > 0:37:2947,500.
0:37:29 > 0:37:3248. 48,500.
0:37:32 > 0:37:3449. 49,500.
0:37:34 > 0:37:3750. At £50,000, with the gentleman on my left there.
0:37:37 > 0:37:3950,500.
0:37:39 > 0:37:4151. 51,500.
0:37:41 > 0:37:4352,000.
0:37:43 > 0:37:4552,500.
0:37:45 > 0:37:4753. 53,000.
0:37:47 > 0:37:4953,500. 54,000.
0:37:49 > 0:37:5254,500. 55.
0:37:52 > 0:37:5455,500.
0:37:54 > 0:37:5556.
0:37:55 > 0:37:5756,500. 56,500.
0:37:57 > 0:37:5957. 57,500.
0:37:59 > 0:38:01And 58. 58,500.
0:38:01 > 0:38:0559. 59,500. No?
0:38:05 > 0:38:07At £59,000 for the first time.
0:38:07 > 0:38:12At £59,000 for the second. £59,000 for the third and final time.
0:38:12 > 0:38:16Sold. Thank you very much indeed, sir.
0:38:16 > 0:38:19With their successful bid at £59,000,
0:38:19 > 0:38:24the new owners are friends and business partners Chris and Khiam.
0:38:24 > 0:38:28Chris is a joiner and Khiam works in the gaming industry,
0:38:28 > 0:38:32but together, they're building an impressive portfolio.
0:38:32 > 0:38:34I met them back at the property to find out
0:38:34 > 0:38:36why they wanted this lovely lot.
0:38:38 > 0:38:41Chris, Khiam, lovely to meet you both. Congratulations.
0:38:41 > 0:38:45- A big house for the money, or two flats!- Very big.
0:38:45 > 0:38:50- So tell me why you wanted to buy them?- We're quite local,
0:38:50 > 0:38:54and the strategy is to buy everything in this whole street.
0:38:54 > 0:38:58Great, so why the desire to buy this particular street, Chris?
0:38:58 > 0:39:00Me, personally, I was born and bred down in South Hylton.
0:39:00 > 0:39:04Khiam has lived down the village for a number of years,
0:39:04 > 0:39:0620 odd years, and we take great pride in the village itself
0:39:06 > 0:39:09and doing them up to that standard.
0:39:09 > 0:39:12So how does it work? How do you split roles and responsibilities?
0:39:12 > 0:39:13Other than my day job,
0:39:13 > 0:39:17I spend...basically one hour I dedicate to the property business
0:39:17 > 0:39:21and Chris basically takes care of...from beginning to the end.
0:39:21 > 0:39:24I just turn up at the auction, put my finger on the property,
0:39:24 > 0:39:27he bids for it, I just sign a few documents etc
0:39:27 > 0:39:28and admire his work at the end of it.
0:39:30 > 0:39:32I take my hat off to these guys
0:39:32 > 0:39:35and their bid to give something back to the local area.
0:39:36 > 0:39:41But first things first, what are their plans for this property?
0:39:41 > 0:39:45- The initial plan is to turn it from two flats into three.- Oh!
0:39:45 > 0:39:49So we'll be making an extra flat on the rear of the building,
0:39:49 > 0:39:52converting this one that we're currently standing in now,
0:39:52 > 0:39:55this will become a two bedroom flat with an ensuite bathroom
0:39:55 > 0:39:57and everything into that side of things.
0:39:57 > 0:40:01The full rear of the building will be a one-bedroom flat,
0:40:01 > 0:40:04sitting room downstairs, kitchen at the back end.
0:40:04 > 0:40:07Up the spiral staircase, or staircase leading to the upper floor
0:40:07 > 0:40:10to a single bedroom and a nice bathroom.
0:40:10 > 0:40:13And then what about the existing flat downstairs?
0:40:13 > 0:40:16The existing one, as you can see, there isn't a bedroom as such,
0:40:16 > 0:40:19so we've got to knock down a couple of walls, move the kitchen
0:40:19 > 0:40:23into the big front room which is currently used as a sitting room
0:40:23 > 0:40:26and divide that and make that into a bathroom with an ensuite.
0:40:26 > 0:40:28And bedroom and everything on that side.
0:40:28 > 0:40:31Are you going to get rid of the wallpaper?
0:40:31 > 0:40:34- Definitely! Definitely! - Keep a little patch just for...
0:40:34 > 0:40:36Probably frame a little piece just for memorabilia.
0:40:36 > 0:40:40And what a difference that alone will make to this flat.
0:40:40 > 0:40:44But all of this work certainly won't come cheap.
0:40:44 > 0:40:49- The budget is round about £35,000. - What about timescale?
0:40:49 > 0:40:51Round about four months.
0:40:51 > 0:40:54If we need planning permission, it could stretch to five or six.
0:40:54 > 0:40:58What's the plan once it's all done? Is it to rent them or sell them on?
0:40:58 > 0:41:00Add them to our rental portfolio. The plan is to do them
0:41:00 > 0:41:03at such a level that the quality of the finishing, that when the time
0:41:03 > 0:41:06does come to sell, we don't have to touch them, and just pass them on.
0:41:06 > 0:41:09But the market at the moment is not quite right.
0:41:09 > 0:41:12Congratulations, good luck. We look forward to seeing how you get on.
0:41:12 > 0:41:13Thank you.
0:41:13 > 0:41:15Well, it's wonderful
0:41:15 > 0:41:18that Chris and Khiam take such pride in the place where they live.
0:41:18 > 0:41:21I think they've certainly got themselves a great property here.
0:41:21 > 0:41:24It's going to be very interesting to see
0:41:24 > 0:41:27how they go on converting it into three flats.
0:41:27 > 0:41:29Will they get the planning permission they need
0:41:29 > 0:41:33and will it in fact go to plan? You can find out later in the show.
0:41:36 > 0:41:41So, have our fearless developers emerged victorious?
0:41:41 > 0:41:44Or have they floundered in the shallow end?
0:41:44 > 0:41:46Now is the time to find out.
0:41:49 > 0:41:51Time now to return to Twickenham
0:41:51 > 0:41:56where earlier in the programme, Bill and his wife Pamela
0:41:56 > 0:41:59bought this four bed, 1970s' mid-terrace for £403,000.
0:42:00 > 0:42:02Bill is a builder
0:42:02 > 0:42:05and Pamela is a recruitment consultant and interior designer.
0:42:05 > 0:42:11They live locally and were going to refurbish the house totally,
0:42:11 > 0:42:17converting the garage into a kitchen and redesigning the dark interior.
0:42:17 > 0:42:20There's going to be a utility room in the existing kitchen,
0:42:20 > 0:42:22plus a study area, because it's a family house.
0:42:22 > 0:42:26Double doors into the kitchen, so that will open that up.
0:42:26 > 0:42:30- The toilet, there isn't much you can do with a ground floor WC.- Mirrors.
0:42:30 > 0:42:32- Mirrors will enhance it. - Works wonders.
0:42:32 > 0:42:34Well, it's now three months later.
0:42:35 > 0:42:40Back at the property, Pamela and Bill are keen to show us around.
0:42:40 > 0:42:44The house has new windows throughout, and you instantly
0:42:44 > 0:42:47notice that the garage has been converted into the kitchen.
0:42:52 > 0:42:56It's all very well equipped with lovely French limestone tiles
0:42:56 > 0:43:00and a separate utility room opposite the refurbished loo.
0:43:03 > 0:43:07Across the hall, the former kitchen is now a study.
0:43:08 > 0:43:12The tiled flooring continues into the living room.
0:43:15 > 0:43:19The original French doors now open out onto a decked area
0:43:19 > 0:43:23and the refurbished garden, as Bill explains.
0:43:25 > 0:43:27The garden was really terribly overgrown.
0:43:27 > 0:43:30It had been neglected for over a year and a half, I should think.
0:43:30 > 0:43:35We turfed it, dug up everything, an amazing amount of rubbish came out.
0:43:35 > 0:43:37You think you'll get away with one skip,
0:43:37 > 0:43:39but invariably, there's so much stuff, that you end up doing
0:43:39 > 0:43:42six or seven skips and the rubbish is never-ending.
0:43:45 > 0:43:48Back inside, the new layout has really opened the house up
0:43:48 > 0:43:53and lets lots of light in. Pamela is delighted with the finish.
0:43:53 > 0:43:57As you can see, we've been extraordinarily busy
0:43:57 > 0:44:00from replacing windows to making a garage now the kitchen.
0:44:00 > 0:44:06We have a study, utility room, fantastic living dining room,
0:44:06 > 0:44:10and I absolutely love the French limestone. That's my favourite.
0:44:11 > 0:44:16Upstairs, the four bedrooms remain - tastefully decorated by Pamela.
0:44:22 > 0:44:25And the bathroom has been refitted to a very high spec.
0:44:30 > 0:44:34Bill has moved the water tank to the loft and installed
0:44:34 > 0:44:38a separate shower and he's managed to squeeze in a new airing cupboard.
0:44:38 > 0:44:42The space for the linen cupboard was stolen from a slight quirk
0:44:42 > 0:44:45in the smallest bedroom. Where the cupboard was before,
0:44:45 > 0:44:48then we've made that into a nice shower,
0:44:48 > 0:44:52so now we've got a proper shower, proper bath, it works very well.
0:44:52 > 0:44:56Bill discovered he'd have to strip out the original 1970s' plumbing,
0:44:56 > 0:45:00so what effect did that have on the budget?
0:45:01 > 0:45:04The original budget was £30,000-£35,000,
0:45:04 > 0:45:07but with the problems that we had in the old '70s build
0:45:07 > 0:45:12and making it comply and putting everything in, we went up to £39,000.
0:45:13 > 0:45:18A bit of an overspend, but these two have worked well together.
0:45:18 > 0:45:20Pamela does all the colours and the designs.
0:45:20 > 0:45:24I get to do the building and make the creative side of it work.
0:45:24 > 0:45:28I've come along and I hope I just complement what he does
0:45:28 > 0:45:32and just make it acceptable. Most people would come in and go,
0:45:32 > 0:45:34"This is really nice, I can make it my own."
0:45:34 > 0:45:37The refurbishment took 10 weeks in the end,
0:45:37 > 0:45:42and Pam and Bill have created a stylish and contemporary house.
0:45:42 > 0:45:45But they're both reeling from some recent very sad news
0:45:45 > 0:45:47that they had to cope with about their dog.
0:45:49 > 0:45:52Georgie had a heart condition
0:45:52 > 0:45:56and she's been poorly for just over a year,
0:45:56 > 0:45:59and she died five weeks ago.
0:45:59 > 0:46:02We've got some great memories of her here, actually, in this house,
0:46:02 > 0:46:05sitting in the grass, so it was very sad,
0:46:05 > 0:46:08but she decided she'd had enough.
0:46:08 > 0:46:09I'm so sorry to hear that.
0:46:09 > 0:46:12But glad to hear they have happy memories of her
0:46:12 > 0:46:14in this property they've worked so hard on.
0:46:16 > 0:46:20Well, time to find out what two local estate agents
0:46:20 > 0:46:22think of the house now it's finished.
0:46:22 > 0:46:25I think the property has been finished to a very high standard.
0:46:25 > 0:46:29The limestone floors and the nice modern white-style kitchen
0:46:29 > 0:46:32are finished to a very good standard indeed.
0:46:32 > 0:46:34I love the way they've brought more space to the property,
0:46:34 > 0:46:38the way they've extended the garage, so you do have
0:46:38 > 0:46:42an extra large kitchen and you have this really nice reception space.
0:46:42 > 0:46:45There isn't many four bedrooms on the market just now.
0:46:45 > 0:46:48Because this is finished to such a high standard,
0:46:48 > 0:46:51they could definitely set a precedent for the road.
0:46:51 > 0:46:54How much did the estate agents think the property could command
0:46:54 > 0:46:56on the open market?
0:46:56 > 0:46:58Bill paid £403,000 at auction
0:46:58 > 0:47:02and the budget has topped out at £39,000
0:47:02 > 0:47:04making a total of £442,000.
0:47:04 > 0:47:06In terms of a sales valuation,
0:47:06 > 0:47:14I would recommend putting this on the market for around £550,000-£575,000.
0:47:14 > 0:47:18I would market this property for £585,000.
0:47:18 > 0:47:24That valuation range of £550-£585,000 would mean
0:47:24 > 0:47:26a gross profit of £108,000-£143,000
0:47:26 > 0:47:29before the usual selling expenses.
0:47:32 > 0:47:37- Ooh!- Ooh!- Excellent.- That's good news.- Yeah. Very happy with that.
0:47:37 > 0:47:40The couple were toying with the idea of selling
0:47:40 > 0:47:43or even moving in themselves,
0:47:43 > 0:47:45but have decided to let it out to tenants,
0:47:45 > 0:47:47so how much income could they get?
0:47:47 > 0:47:50I would recommend putting this property on the lettings market
0:47:50 > 0:47:53for £2,800 per calendar month.
0:47:53 > 0:47:57We'd rent this property for £2,000 per calendar month.
0:47:57 > 0:47:59Quite a difference in opinion there.
0:47:59 > 0:48:02Meaning those rental values could give an annual yield
0:48:02 > 0:48:05of between 5.5% and 7.5%.
0:48:05 > 0:48:09That is a discrepancy, but we believe that it's the quality of the build
0:48:09 > 0:48:13and the location for the schools and everything,
0:48:13 > 0:48:16it's worth £2,800, approximately, a month.
0:48:16 > 0:48:18And since we filmed, they've secured a tenant who will be
0:48:18 > 0:48:23paying £2,380 per month, which is in between the two valuations.
0:48:23 > 0:48:27So, they can be very proud of what they have achieved here.
0:48:27 > 0:48:29We're really pleased with how it's gone,
0:48:29 > 0:48:33we really like the end product. It's a great family home now.
0:48:36 > 0:48:39We're back now in South Hylton, Sunderland,
0:48:39 > 0:48:44where this pair of flats sold at auction for £59,000.
0:48:44 > 0:48:47I met up with business partners, Chris and Khiam,
0:48:47 > 0:48:50who were planning to turn the two flats into three.
0:48:50 > 0:48:53They already owned several other properties on the same street
0:48:53 > 0:48:56and were doing their best to improve the housing stock
0:48:56 > 0:48:59in the village they grew up in, one property at a time.
0:49:02 > 0:49:05So why the desire to buy this particular street, Chris?
0:49:05 > 0:49:08Me, personally, I was born and bred down in South Hylton,
0:49:08 > 0:49:11Khiam has lived down the village for 20 odd years,
0:49:11 > 0:49:13and we take great pride in the village itself...
0:49:13 > 0:49:16- Right.- ..and doing them up to that standard.
0:49:16 > 0:49:20So, did they manage to polish up these properties enough
0:49:20 > 0:49:22to make the village proud?
0:49:22 > 0:49:25We're back just four months later to see how they got on.
0:49:29 > 0:49:32They have indeed managed to convert it into three flats.
0:49:32 > 0:49:34First up, let's check out
0:49:34 > 0:49:37the one-bedroom flat on the ground floor.
0:49:43 > 0:49:46The living room which was at the front of the property
0:49:46 > 0:49:50has been cut considerably in size to create this smaller bedroom.
0:49:50 > 0:49:54And thankfully, all that crazy wallpaper has gone.
0:49:55 > 0:49:57In the old configuration,
0:49:57 > 0:49:59the front door opened straight into the living room.
0:49:59 > 0:50:04But now, because of a new wall, you gain access through the kitchen,
0:50:04 > 0:50:08utilising the remaining part of the old sitting-room.
0:50:08 > 0:50:10Previously, there was a kitchen
0:50:10 > 0:50:14and this oddly shaped room at the back of the house,
0:50:14 > 0:50:16but a wall was removed and the kitchen ripped out,
0:50:16 > 0:50:20allowing for a much larger living room to be created
0:50:20 > 0:50:23with a toilet and shower off to the side.
0:50:23 > 0:50:26The flat may not be quite finished,
0:50:26 > 0:50:29but it's on its way to being a well-designed, one-bedroom property.
0:50:33 > 0:50:35This room here used to be the original flat
0:50:35 > 0:50:39which we put partitioning walls in to create...
0:50:39 > 0:50:41obviously, divide up the two rooms,
0:50:41 > 0:50:44put suspended ceilings into it, altered the gas supplies
0:50:44 > 0:50:48for the utilities for cookers and stuff like that,
0:50:48 > 0:50:51installed new sinks for the plumbing,
0:50:51 > 0:50:57so much bigger spaces throughout the flat, bigger lounge...
0:50:57 > 0:50:58created a decent sized bedroom,
0:50:58 > 0:51:02a decent sized wet room and shower which has in turn created
0:51:02 > 0:51:04a decent enough finish which we're really happy with.
0:51:04 > 0:51:09Obviously, good-sized kitchen as well as the rest of the size of the rooms.
0:51:09 > 0:51:13Back outside is the entrance to the other two flats.
0:51:13 > 0:51:16And the first is at the rear of the property.
0:51:27 > 0:51:29Downstairs are the living room and kitchen
0:51:29 > 0:51:32with access to the shared garden.
0:51:33 > 0:51:35And up the spiral staircase...
0:51:40 > 0:51:43..there's a bedroom and great sized bathroom.
0:51:46 > 0:51:49All in all, it's another good-sized property.
0:51:51 > 0:51:55So that brings us to the third flat which is a two bed,
0:51:55 > 0:51:58accessed from the front entrance through the door on the right.
0:52:14 > 0:52:16The single bedroom has been redecorated.
0:52:22 > 0:52:24The master bedroom has been divided
0:52:24 > 0:52:27to give a good-sized kitchen and bathroom.
0:52:34 > 0:52:37This room used to be a large double bedroom,
0:52:37 > 0:52:40and we've actually split it into two, converting half of it
0:52:40 > 0:52:44into a family sized bathroom and the kitchen on the other side.
0:52:44 > 0:52:46I think we've done a good job with it.
0:52:46 > 0:52:50But it's up the new spruced up staircase to the loft
0:52:50 > 0:52:53where you'll find the jewel in the crown -
0:52:53 > 0:52:56a spacious and light master bedroom.
0:53:01 > 0:53:05The place is looking amazing. Who would have thought
0:53:05 > 0:53:08that by making a third flat out of the original two properties,
0:53:08 > 0:53:11you could make them all feel better proportioned.
0:53:11 > 0:53:14So what works exactly have been done here?
0:53:15 > 0:53:18Rewiring, re-plumbing, replastering, damp coursing, new roofs,
0:53:18 > 0:53:21new windows. Basically, left the shell of the original
0:53:21 > 0:53:25and just built everything new from the inside.
0:53:25 > 0:53:29And what a great result. Chris and Khiam were fortunate enough
0:53:29 > 0:53:32not to need planning permission for the conversion.
0:53:32 > 0:53:35This was mainly done by adding or removing internal stud walls.
0:53:35 > 0:53:38As the building was already registered
0:53:38 > 0:53:40as a house of multiple occupancy,
0:53:40 > 0:53:44they discovered they could do it all within building regulations.
0:53:44 > 0:53:48The hardest jobs were the electrics and sorting out the plumbing
0:53:48 > 0:53:50to each individual flat,
0:53:50 > 0:53:53and that's where trusted trades stepped in.
0:53:53 > 0:53:55But there's still a bit to do.
0:53:55 > 0:53:56The project is almost 90 % done.
0:53:56 > 0:53:59What's left is basically the cosmetic stuff.
0:53:59 > 0:54:02Paintwork, joinery, the finishing of the bathrooms,
0:54:02 > 0:54:06just double-checking everything and skirting boards,
0:54:06 > 0:54:09and in about two weeks, I think we should be done.
0:54:10 > 0:54:13The boys were delayed in starting the project,
0:54:13 > 0:54:17so they will overshoot their 3 to 4 month timescale, but not by much.
0:54:17 > 0:54:21What about their £35,000 budget?
0:54:23 > 0:54:25The budget has kind of risen slightly.
0:54:25 > 0:54:28We originally estimated it to be around the area of £35,000,
0:54:28 > 0:54:31but we have already spent £37,000,
0:54:31 > 0:54:35and we think another three is required to finish the flat off
0:54:35 > 0:54:38and hand them over to the tenants.
0:54:38 > 0:54:41If they do end up spending their estimated £40,000
0:54:41 > 0:54:47on the restoration, that will take the total outlay here to £99,000.
0:54:47 > 0:54:50The big question is, was it all worth it?
0:54:50 > 0:54:55We invited along two local property experts to give us their views.
0:54:55 > 0:54:57I think the gentlemen have done a fantastic job
0:54:57 > 0:55:02with the properties, redeveloping them to a high standard.
0:55:02 > 0:55:05It looks like the kitchens, the bathrooms in all the actual flats
0:55:05 > 0:55:09are a decent quality and they should attract good tenants.
0:55:09 > 0:55:12They've been converted well.
0:55:12 > 0:55:16They've sort of used a lot of good materials, nice bathrooms,
0:55:16 > 0:55:19nice kitchens, been decorated to a good standard.
0:55:19 > 0:55:21Well, that's all really positive.
0:55:21 > 0:55:23Chris and Khiam should be very proud.
0:55:23 > 0:55:27But how much do they think this whole property could make
0:55:27 > 0:55:29collectively in rental income?
0:55:29 > 0:55:33As a rental income, I would estimate about £1,200 per calendar month.
0:55:33 > 0:55:37For all three flats, I would say that he could achieve
0:55:37 > 0:55:40a rental in the region of £1,200 per calendar month.
0:55:40 > 0:55:43Yep, that's higher than what we anticipated.
0:55:43 > 0:55:46Yeah, we estimated about £1,100, so that's good.
0:55:46 > 0:55:51It sure is good! That's a potential yield of 14.5%
0:55:51 > 0:55:54if they can rent out all three flats.
0:55:54 > 0:55:57If all three properties were sold as one job lot,
0:55:57 > 0:56:01what could they hope to achieve in today's market?
0:56:01 > 0:56:06In a resale, I would estimate a value of about £175,000.
0:56:06 > 0:56:08In terms of resale for all three flats,
0:56:08 > 0:56:12I think he's looking to achieve in the region of £155,000.
0:56:12 > 0:56:15- That's good.- It is. - We were expecting,
0:56:15 > 0:56:21we thought about £140,000 would be a good selling price in this market.
0:56:21 > 0:56:23They've done much better than they hoped.
0:56:23 > 0:56:27A potential gross profit of £56-£76,000
0:56:27 > 0:56:29minus the usual selling expenses.
0:56:29 > 0:56:33So with this successful development under their belts,
0:56:33 > 0:56:37what's next for these Sunderland property tycoons?
0:56:37 > 0:56:39We most definitely will keep on buying from auction.
0:56:39 > 0:56:42We've bought in the past, and especially with this property,
0:56:42 > 0:56:43we've had good success,
0:56:43 > 0:56:47and I think we'll continue down the auction route.
0:56:47 > 0:56:50For now, it's been the most successful route we've taken.
0:56:52 > 0:56:56Not enough for you? Well, there's plenty more where that came from!
0:56:56 > 0:56:58Yes, join us next time for more Homes Under The Hammer!
0:56:58 > 0:57:00- See you then.- Goodbye.- Goodbye.
0:57:15 > 0:57:19Subtitles by Red Bee Media Ltd