0:00:02 > 0:00:05Hello. More and more people would love to have a property portfolio,
0:00:05 > 0:00:08and that doesn't have to be as grand as it sounds.
0:00:08 > 0:00:10No, if you can raise even a small sum,
0:00:10 > 0:00:13you can usually find something to buy.
0:00:13 > 0:00:16Then at least you've got your foot on the property ladder.
0:00:16 > 0:00:19And one good way to start is to go down to the auctions.
0:00:45 > 0:00:48Because of the variety of property available,
0:00:48 > 0:00:50auctions are a great place to buy.
0:00:50 > 0:00:53Yes, and if you've done your research
0:00:53 > 0:00:55and got your finances in place beforehand,
0:00:55 > 0:00:58then you should be able to make a success of your purchase.
0:00:58 > 0:01:00So let's take a look at what interested our buyers
0:01:00 > 0:01:02on today's programme.
0:01:03 > 0:01:08'This 100-year-old Devon barn wasn't quite what I was hoping for.'
0:01:09 > 0:01:12Maybe it will be better on the inside.
0:01:13 > 0:01:17'In Catford, London, I always think it's worth repeating myself.'
0:01:17 > 0:01:22I know, I'm always banging on about access out into the garden - voila!
0:01:23 > 0:01:25'And in Kidby, Lincolnshire,
0:01:25 > 0:01:28'some unwanted guests have wormed their way in.'
0:01:28 > 0:01:30It's got to be treated,
0:01:30 > 0:01:33because otherwise your whole house is going to turn to dust.
0:01:34 > 0:01:36All of these properties went to auction -
0:01:36 > 0:01:38we'll find out who bought them
0:01:38 > 0:01:41and what they paid for them when they went under the hammer.
0:01:46 > 0:01:49I'm in the picturesque village of Northlew
0:01:49 > 0:01:52on the edge of Dartmoor, about seven miles outside Okehampton.
0:01:52 > 0:01:57Let's just hope the property I'm here to see matches up...
0:01:57 > 0:01:59to that place.
0:01:59 > 0:02:01Wow!
0:02:01 > 0:02:05# A little village, baby
0:02:05 > 0:02:07# Ain't large enough to be a town. #
0:02:07 > 0:02:10So far, we have all the classic elements
0:02:10 > 0:02:13you'd expect to find in a quaint Devon village.
0:02:13 > 0:02:17It also has amenities, like a post office, a school and a church.
0:02:17 > 0:02:19Can it get any better?
0:02:19 > 0:02:22Well, the property I am here to see is up this quiet lane,
0:02:22 > 0:02:27right by the side of this little river. It's a barn for conversion,
0:02:27 > 0:02:29it had the guide price of £39,000.
0:02:29 > 0:02:32Oh, I'm getting so excited!
0:02:33 > 0:02:35It's round here somewhere.
0:02:35 > 0:02:37It...
0:02:40 > 0:02:41Oh.
0:02:43 > 0:02:46Maybe it will be better on the inside.
0:02:46 > 0:02:51MUSIC: "Boulevard Of Broken Dreams" by Green Day
0:02:51 > 0:02:55Hmm, well, it's definitely not the thatched, chocolate-box beauty
0:02:55 > 0:02:57I had in my mind's eye.
0:03:02 > 0:03:05Oh, thank goodness for that.
0:03:05 > 0:03:07I didn't know what I was going to find.
0:03:07 > 0:03:09I would have been so disappointed.
0:03:09 > 0:03:12But, thank goodness, you come through the door and suddenly,
0:03:12 > 0:03:15wow, you see the potential of this place. Love it.
0:03:15 > 0:03:19I love these beams going across there, and they feel pretty solid.
0:03:19 > 0:03:22Keep those in any renovation you might do.
0:03:22 > 0:03:23One big space is basically all you have got,
0:03:23 > 0:03:26but what I love is the fact that you have got this huge great height,
0:03:26 > 0:03:30and these beams in the roof, again, you can do so much with.
0:03:30 > 0:03:32Yes, it is a bit of a shell,
0:03:32 > 0:03:35but it's one that I think has massive potential.
0:03:35 > 0:03:38Oh, thank goodness for that.
0:03:38 > 0:03:42# If these old walls
0:03:42 > 0:03:46# If these old walls could speak
0:03:46 > 0:03:51# Of things that they remember well
0:03:51 > 0:03:53# If these walls could speak... #
0:03:55 > 0:03:59Refurbishing this 100-year-old barn won't be easy.
0:03:59 > 0:04:04Outside, the rendering is falling off, and the windows are rotten.
0:04:04 > 0:04:07But the potential here is so exciting...
0:04:09 > 0:04:12..with the challenge of bringing all those original timbers
0:04:12 > 0:04:14and walls back to life.
0:04:14 > 0:04:17Well, the lower part of the building is made of stone,
0:04:17 > 0:04:21but above that, it's what they call cob.
0:04:21 > 0:04:22In case you don't know,
0:04:22 > 0:04:25cob is basically whatever was lying around at the time,
0:04:25 > 0:04:29a mixture of straw, and animal droppings, and stone,
0:04:29 > 0:04:31and all sorts of stuff,
0:04:31 > 0:04:35but in general, it's good stuff, as long as it's kept dry.
0:04:35 > 0:04:36That's really important,
0:04:36 > 0:04:39because once this stuff gets wet, it just crumbles away, and it's a nightmare.
0:04:39 > 0:04:42Thankfully, the roof does look to be in reasonable condition,
0:04:42 > 0:04:45so my guess is that the cob wall is OK.
0:04:45 > 0:04:49The thing is, what do you do in terms of restoring this place?
0:04:49 > 0:04:51Do you keep it? Well, I think you're going to have to.
0:04:51 > 0:04:53You'd have to get specialists in to sort it out,
0:04:53 > 0:04:55and they can also sort out the stonework, which,
0:04:55 > 0:04:58as you can see, is literally held together by...
0:04:58 > 0:05:02Well, I don't know, it's probably limestone something or other.
0:05:02 > 0:05:05Again, it's all very loose. It needs a specialist.
0:05:05 > 0:05:07It's not insurmountable, but, of course,
0:05:07 > 0:05:09specialists are not going to be cheap,
0:05:09 > 0:05:12and you need to factor that into your renovation costs.
0:05:12 > 0:05:15You'd also need to factor in whatever it might cost
0:05:15 > 0:05:17to get utilities to the house.
0:05:17 > 0:05:20It currently has no electricity or plumbing.
0:05:20 > 0:05:24There is no mains water or sewerage and no septic tank, so,
0:05:24 > 0:05:26with a £39,000 guide price
0:05:26 > 0:05:30and these basic but expensive works to do,
0:05:30 > 0:05:32the meter is running, and sadly,
0:05:32 > 0:05:34it's just the money meter in this case.
0:05:34 > 0:05:37So you've probably worked out by now
0:05:37 > 0:05:40that this is going to be a challenge.
0:05:40 > 0:05:44But let me just throw up a few more complications into the mix.
0:05:44 > 0:05:49For a start, this is your only outdoor space.
0:05:49 > 0:05:52No garden, no nothing, only this small courtyard.
0:05:52 > 0:05:55And worse than that, currently,
0:05:55 > 0:05:59this does not have planning permission to be a residence.
0:05:59 > 0:06:00Oh, dear.
0:06:00 > 0:06:03So, then, Devon dream or Devon disaster?
0:06:03 > 0:06:06We asked a local estate agent to come and give us his advice.
0:06:06 > 0:06:11What would he suggest is the best plan for this 100-year-old barn
0:06:11 > 0:06:14in this picturesque village?
0:06:14 > 0:06:17The best plan would be to turn it into a two-bedroom character cottage,
0:06:17 > 0:06:19with the additional outside space it has already,
0:06:19 > 0:06:21with an outside seating area.
0:06:21 > 0:06:24If you wanted to change the property to residential use,
0:06:24 > 0:06:27you would have to submit a planning application to the local council.
0:06:27 > 0:06:30But what if you were to succeed in getting planning permission,
0:06:30 > 0:06:32is there a viable rental market?
0:06:32 > 0:06:35What returns could a buy-to-let investor achieve?
0:06:35 > 0:06:38As a rental two-bedroom character cottage, you would expect to achieve
0:06:38 > 0:06:43a rent in the region of £600-£650 per calendar month.
0:06:43 > 0:06:46What could the barn be worth after conversion?
0:06:46 > 0:06:50If the property was converted into residential use,
0:06:50 > 0:06:52a two-bedroom cottage, you'd be looking at a resale value
0:06:52 > 0:06:57in the region of around £180,000-£190,000.
0:06:57 > 0:07:01Oh, boy, this is one of those projects where it would be so easy
0:07:01 > 0:07:03to let your heart rule your head.
0:07:03 > 0:07:05This would make the most fantastic place to live -
0:07:05 > 0:07:07the location is wonderful.
0:07:07 > 0:07:10However, you are hampered by the lack of outdoor space,
0:07:10 > 0:07:13and the amount of effort it's going to take to sort this place out,
0:07:13 > 0:07:14oh, and by the way,
0:07:14 > 0:07:17the fact it hasn't got planning permission to actually be a house.
0:07:17 > 0:07:21Hurdles in the way. Who fancied vaulting over them
0:07:21 > 0:07:22when it went to the auction?
0:07:22 > 0:07:27OK, we move then to the barn at Okehampton. Lot 57,
0:07:27 > 0:07:30I know there has been quite bit of interest in it. 30,000, then?
0:07:30 > 0:07:3230,000 for the barn. 30,000?
0:07:32 > 0:07:3430,000, I have. thank you, sir.
0:07:34 > 0:07:3530,000.
0:07:35 > 0:07:3735,000, thank you.
0:07:37 > 0:07:3940,000?
0:07:39 > 0:07:4036?
0:07:40 > 0:07:4336,000. OK, I have 36,000.
0:07:43 > 0:07:4537? 37, I have.
0:07:45 > 0:07:4738? 38, I have.
0:07:47 > 0:07:4939,000. 39,000.
0:07:49 > 0:07:5140,000? 40,000.
0:07:51 > 0:07:5441,000. 42,000.
0:07:54 > 0:07:5742,000, the gentleman at the front there.
0:07:57 > 0:07:5943? 43,000, I have.
0:07:59 > 0:08:0144,000? Yes, 44,000.
0:08:01 > 0:08:04Looking at 45, then?
0:08:04 > 0:08:0745,000, I have. 45, so 46, then?
0:08:07 > 0:08:0945,500, I have.
0:08:09 > 0:08:1145,500? 45,500?
0:08:11 > 0:08:1346? 46, I've got.
0:08:13 > 0:08:1646,500? 46,500. 46,500.
0:08:16 > 0:08:2047? 47,500? 47,500.
0:08:20 > 0:08:2248? 48, I have.
0:08:22 > 0:08:24OK, 48,500?
0:08:24 > 0:08:2648,500. 49?
0:08:26 > 0:08:28He looks away.
0:08:28 > 0:08:32I'm going to be selling at £48,500.
0:08:32 > 0:08:34Selling for the first time...
0:08:34 > 0:08:39selling for the second time at £48,500...
0:08:40 > 0:08:44'That successful bid of £48,500 was made by Tony,
0:08:44 > 0:08:46'together with his wife Linda.
0:08:46 > 0:08:50'They own a development company, and he is also an electrical contractor.
0:08:50 > 0:08:55'I met up with Tony at the barn to discuss his plans.'
0:08:55 > 0:08:57- Tony, congratulations.- Thank you.
0:08:57 > 0:08:59Well done. Tell me why you wanted to buy this place?
0:08:59 > 0:09:03Well, we do small developments from time to time.
0:09:03 > 0:09:06Over the last three years, we have restored a bungalow,
0:09:06 > 0:09:08a flat and now this one.
0:09:08 > 0:09:11My main business is electrical contracting.
0:09:11 > 0:09:14- OK, and that is your business, is it?- Yes.
0:09:14 > 0:09:16So, of course, bungalows and the like
0:09:16 > 0:09:20- are very different to a barn like this.- Oh, yes.
0:09:20 > 0:09:21Does that worry you at all?
0:09:21 > 0:09:22No, not at all.
0:09:22 > 0:09:26The main building work, we'll let that out to a contractor,
0:09:26 > 0:09:28and then I will carry on with the electrical.
0:09:28 > 0:09:30We've got a plumber lined up,
0:09:30 > 0:09:32a planning consultant dealing with the planning,
0:09:32 > 0:09:35and a firm of architects who will do the internal design.
0:09:35 > 0:09:37The starting point for all that, of course,
0:09:37 > 0:09:39is getting planning permission,
0:09:39 > 0:09:41because it doesn't have planning permission, does it?
0:09:41 > 0:09:44Well, we have already approached a planning consultant,
0:09:44 > 0:09:48and the only thing he raised was the fact that we would probably have to have a flood survey.
0:09:48 > 0:09:50What happens if you don't get planning permission?
0:09:50 > 0:09:52Because you never know...
0:09:52 > 0:09:56Well, we will convert it to, hopefully, a store/workshop/studio,
0:09:56 > 0:09:59because there was a building next door that was demolished,
0:09:59 > 0:10:03and there is planning which has been approved for a workshop/store/studio.
0:10:03 > 0:10:06- Oh.- So no doubt the same would apply to this one.
0:10:06 > 0:10:08So where do you start on a project like this?
0:10:08 > 0:10:12The three main elements are the roof, doors and windows,
0:10:12 > 0:10:15and a sewerage plant, because there is no mains sewerage.
0:10:15 > 0:10:18'This property is very tight for outside space,
0:10:18 > 0:10:21'so where can that sewerage system go?
0:10:21 > 0:10:23'Well, it turns out that Tony has a cunning plan.
0:10:23 > 0:10:26'He's made a deal with the neighbour for a bit of their garden
0:10:26 > 0:10:29'at a cost of £45,000.'
0:10:29 > 0:10:31OK, which bit?
0:10:31 > 0:10:34The piece... The width of this house, the width of the barn,
0:10:34 > 0:10:39down to the River Lew, which is 34 metres by about nine metres across.
0:10:39 > 0:10:41So it will actually have a river frontage?
0:10:41 > 0:10:43Oh, river frontage, yes!
0:10:43 > 0:10:47'So the barn cost Tony £48,500,
0:10:47 > 0:10:51'and he has paid another £45,000 for the land.
0:10:51 > 0:10:56'But I reckon it is the crucial piece of the jigsaw that makes this project practical.'
0:10:56 > 0:10:58OK, let's come onto the actual building, then.
0:10:58 > 0:11:01You didn't mention the walls, in terms of what you're going to have to do.
0:11:01 > 0:11:04- We are going to timber-frame inside...- Oh?
0:11:04 > 0:11:06It will be like a timber-framed house.
0:11:06 > 0:11:09And then internal layout, what are you going to go for?
0:11:09 > 0:11:12Up in the air at the moment. My idea is an upside-down house,
0:11:12 > 0:11:15with the bedrooms down the bottom, and the lounge and kitchen upstairs.
0:11:15 > 0:11:19The architect has got the other way round, he wants to do it the other way.
0:11:19 > 0:11:21So what are the bill costs?
0:11:21 > 0:11:24We have estimated it between 50 and 60,000,
0:11:24 > 0:11:27but I think we've gone over a little bit.
0:11:27 > 0:11:30So what is the sort of timescale for all of this?
0:11:30 > 0:11:32Well, planning, we allow two months.
0:11:32 > 0:11:35And then I should think four months doing it up,
0:11:35 > 0:11:37seeing as we're right in the middle of the winter.
0:11:37 > 0:11:42- Congratulations. I hope it turns out well for you. - Thank you very much. I think it will.
0:11:42 > 0:11:44I really look forward to seeing how it is.
0:11:47 > 0:11:50Well, clearly negotiating with the neighbour to buy
0:11:50 > 0:11:53this bit of garden was Tony's masterstroke.
0:11:53 > 0:11:56It makes all the difference on this project.
0:11:56 > 0:11:58Still, he hasn't got that planning permission,
0:11:58 > 0:12:01and you never know what might happen.
0:12:01 > 0:12:04Well, you know what, you can find out later in the show.
0:12:14 > 0:12:18This is Catford in south-east London, famous for, well,
0:12:18 > 0:12:21that big, fibreglass cat for one,
0:12:21 > 0:12:24and also the massive concrete shopping centre
0:12:24 > 0:12:26which was built in the 1960s.
0:12:26 > 0:12:29This brutalist style of architecture is just that -
0:12:29 > 0:12:33big and unforgiving, and now very out of fashion.
0:12:33 > 0:12:35Many similar buildings are being demolished,
0:12:35 > 0:12:37and the sites regenerated,
0:12:37 > 0:12:41and the council here certainly have plans to redevelop this area.
0:12:41 > 0:12:44The question is, will our Catford property
0:12:44 > 0:12:48be ready for the wrecking ball or really rather purr-fect?
0:12:48 > 0:12:50Miaow!
0:12:52 > 0:12:53Well, love or hate these buildings,
0:12:53 > 0:12:56if the planned regeneration takes place,
0:12:56 > 0:12:59property prices could be set to rise.
0:12:59 > 0:13:03A mile from Catford train station, a mile from Hither Green,
0:13:03 > 0:13:06and in the middle you find the property I'm here to see.
0:13:06 > 0:13:08It's that great rarity in London -
0:13:08 > 0:13:13a whole house with a guide price of under £200,000.
0:13:13 > 0:13:19175 grand, in fact, and that is 110% worth a look.
0:13:23 > 0:13:26The numbers certainly stack up from outside,
0:13:26 > 0:13:28and the road the property is on also ticks some boxes.
0:13:28 > 0:13:31It is wide, and lined with lovely terraced houses,
0:13:31 > 0:13:34with a bit of a view - bonus.
0:13:34 > 0:13:37Oh, a much bigger hallway than I was expecting.
0:13:37 > 0:13:40I know I get a bit excited about hallways, but I really think
0:13:40 > 0:13:43they set the scene, and start you off for a good house tour.
0:13:43 > 0:13:46There's plenty of room here for a console table,
0:13:46 > 0:13:49a nice big mirror, loads of light coming in as well, which I like.
0:13:49 > 0:13:52You've got a lounge, it's nice and spacious.
0:13:52 > 0:13:55A bit of a wasted space through here with this rather odd little room.
0:13:55 > 0:13:59I think that might have housed the downstairs loo, but it's a bit big.
0:13:59 > 0:14:02I definitely would be thinking about taking this wall down,
0:14:02 > 0:14:06speaking to a structural engineer to see if you need an RSJ,
0:14:06 > 0:14:08and really opening the space up.
0:14:08 > 0:14:10It could be a wonderful kitchen-diner.
0:14:10 > 0:14:12The kitchen currently is through here,
0:14:12 > 0:14:14but you could, of course, bring it in here,
0:14:14 > 0:14:17use that as a utility room, but I think it works as it is.
0:14:17 > 0:14:21I know I am always banging on about access out to the garden - voila!
0:14:21 > 0:14:24Lovely double doors leading out to that garden.
0:14:24 > 0:14:28With a bit of careful thought, this could really work.
0:14:38 > 0:14:42A positive attitude will definitely be needed to tackle some of these jobs.
0:14:42 > 0:14:46Neither the front room, nor the back dining room are too bad,
0:14:46 > 0:14:49but the kitchen has definitely wiped the smile from my face.
0:14:49 > 0:14:52And there is something missing. Oh, dear.
0:14:52 > 0:14:54Let's see if you can spot what it is.
0:14:58 > 0:15:01Decent roof - check.
0:15:01 > 0:15:04Double glazing - check.
0:15:04 > 0:15:07Large Catford-sized garden - check.
0:15:07 > 0:15:13Have you clocked it yet? No? OK, let's have a look upstairs.
0:15:13 > 0:15:15Three decent bedrooms - check.
0:15:15 > 0:15:18And a bathroom - check.
0:15:18 > 0:15:20I must say, I am loving this layout.
0:15:20 > 0:15:22Three good-sized bedrooms
0:15:22 > 0:15:25and a decent family bathroom through there.
0:15:25 > 0:15:29Not massive and it all needs refurbishing, but the point is,
0:15:29 > 0:15:33it works, which is wonderful. So back to what we're lacking here.
0:15:33 > 0:15:35Have you worked it out yet?
0:15:35 > 0:15:37It is surprisingly easy to miss
0:15:37 > 0:15:41but there are no radiators at all in this house.
0:15:41 > 0:15:45In fact, I've been told there is no plumbing left in the house anywhere.
0:15:45 > 0:15:48The piping has just gone - vamoose.
0:15:48 > 0:15:52The sink looks like it's been fitted, but it hasn't been,
0:15:52 > 0:15:53the toilet through there, well,
0:15:53 > 0:15:56I wouldn't advise anybody to use it at the moment.
0:15:56 > 0:15:59It's all a bit bizarre, but, more importantly,
0:15:59 > 0:16:01you need to check if there's been any leaks anywhere, in case
0:16:01 > 0:16:03the pipes weren't properly drained
0:16:03 > 0:16:07and water is still running through, causing all sorts of damage here.
0:16:13 > 0:16:15Very bizarre.
0:16:15 > 0:16:17In fact, if you look closely,
0:16:17 > 0:16:20the loo isn't even connected to the soil pipe.
0:16:20 > 0:16:23None of the facilities are actually connected.
0:16:23 > 0:16:27My positive attitude is draining away.
0:16:27 > 0:16:30As all the radiators and pipe work have been removed,
0:16:30 > 0:16:34this is beginning to look like a big job, and an expensive one.
0:16:35 > 0:16:37We asked a local estate agent along
0:16:37 > 0:16:39to see if we were plumbing the depths
0:16:39 > 0:16:45with this property, that went to auction guided at 175,000.
0:16:45 > 0:16:48First impressions as I walked in - needs a bit of work.
0:16:48 > 0:16:52Could do with a new kitchen, new bathroom, re-plastering, etc, etc.
0:16:52 > 0:16:56Needs lots of attention but could look very nice once done.
0:16:56 > 0:16:59Once all the pipes are out back and the place is made habitable,
0:16:59 > 0:17:02how much could it be let for?
0:17:02 > 0:17:04Once the property has been refurbished to a good standard,
0:17:04 > 0:17:07it would rent for around £1,300 per calendar month.
0:17:07 > 0:17:09And a possible resale figure?
0:17:09 > 0:17:13Once the work is carried out, around £250,000.
0:17:14 > 0:17:19A good family home and it's a plumber's dream project.
0:17:19 > 0:17:23This house is good value for money in a London suburb often forgotten.
0:17:23 > 0:17:26Let's see who remembered it at the auction.
0:17:26 > 0:17:29This is lot 107.
0:17:29 > 0:17:31Three bed mid-terraced house in Catford.
0:17:31 > 0:17:34Requiring modernisation, it's a vacant possession.
0:17:34 > 0:17:37Who'd like to give me a start on this?
0:17:37 > 0:17:39Somebody want to give me a start at 180?
0:17:39 > 0:17:42Yes, got you, thank you, 180 I've got.
0:17:42 > 0:17:48180 on my left. 181, 182, 183, 184,
0:17:48 > 0:17:52185, 186, 187...
0:17:52 > 0:17:54With two bidders keen on the property,
0:17:54 > 0:17:58we rejoin the auction at £205,000.
0:17:58 > 0:18:00205? 205.
0:18:00 > 0:18:04206, 207...
0:18:05 > 0:18:09207, 208, 209...
0:18:11 > 0:18:14210, 211...
0:18:16 > 0:18:18212.
0:18:18 > 0:18:25212, 213. Yeah? 213. 214? No?
0:18:25 > 0:18:30With you, sir. The bid is £213,000. Anybody else?
0:18:30 > 0:18:33New bid. 214, 215.
0:18:35 > 0:18:40No? With you, sir, first bid, £214,000.
0:18:40 > 0:18:43It's against the gentleman on my left at the back.
0:18:43 > 0:18:45The bid is at £214,000.
0:18:45 > 0:18:47Anybody else?
0:18:47 > 0:18:52If not, 214 for the first, 214 for the second,
0:18:52 > 0:18:55214 for the third and final time.
0:18:55 > 0:18:58All done? Sold. 214. Well bought.
0:18:59 > 0:19:05The daring bidder who made that cheeky but successful single bid was Lloyd.
0:19:05 > 0:19:09He secured the property for 214,000 -
0:19:09 > 0:19:1139 grand over the guide price.
0:19:13 > 0:19:16With the help of his builder brother-in-law Ray,
0:19:16 > 0:19:17he's intending to refurbish it
0:19:17 > 0:19:21whilst on a break from his career in banking.
0:19:21 > 0:19:24The house is an investment for Lloyd's wife.
0:19:24 > 0:19:28I joined Lloyd and Ray back at the three-bedroomed house
0:19:28 > 0:19:30to find out more.
0:19:30 > 0:19:32Guys, congratulations.
0:19:32 > 0:19:35Ray, you weren't at the auction but you were there, Lloyd, bidding.
0:19:35 > 0:19:37Tell me, why have you bought this place?
0:19:37 > 0:19:42I bought this place primarily probably to live in for a short while,
0:19:42 > 0:19:44maybe a year or two.
0:19:44 > 0:19:49My wife has just had a baby so we're planning, at some point,
0:19:49 > 0:19:53moving out to the shires, moving out to Kent.
0:19:53 > 0:19:54So then we would rent this out.
0:19:54 > 0:19:59In terms of the work I'd be doing on it, it would be, not top spec,
0:19:59 > 0:20:02but good enough to live in and then to rent out following that.
0:20:02 > 0:20:05Did Ray come and have a look at this property
0:20:05 > 0:20:06prior to you bidding at auction?
0:20:06 > 0:20:10No, I did a property before and Ray actually helped me.
0:20:10 > 0:20:13I did talk to Ray about it, but he helped me with advice
0:20:13 > 0:20:16and came up from Brighton and helped me on the last property that I did.
0:20:16 > 0:20:18The intention is that he'll do the same here
0:20:18 > 0:20:21because he's got a lot of good knowledge that I don't have.
0:20:21 > 0:20:24I did come and see this, having watched Homes Under The Hammer
0:20:24 > 0:20:27- before, I did read the legal pack and view the property.- Big tick.
0:20:27 > 0:20:31But I didn't notice that all the pipe work under the floors
0:20:31 > 0:20:33had been ripped out.
0:20:33 > 0:20:36There is... In one sense, that's a bad thing, in another,
0:20:36 > 0:20:39it's a blank canvas because it will need plumbing throughout,
0:20:39 > 0:20:42new boiler plumbing throughout, new wiring throughout,
0:20:42 > 0:20:46some plastering and then flooring, cosmetic.
0:20:46 > 0:20:49Obviously, you must have noticed there weren't any radiators.
0:20:49 > 0:20:51- Yes, but...- That is obviously linked.
0:20:51 > 0:20:55The other thing, which you may have noticed, in the upstairs bathroom -
0:20:55 > 0:20:59I think the bathroom was downstairs - when you look at the soil stack,
0:20:59 > 0:21:01there's just wall behind there and the pipe has been made
0:21:01 > 0:21:04- to look like it was a bathroom... - And it's not!- And it is not there.
0:21:11 > 0:21:13Well, a word of caution here.
0:21:13 > 0:21:18Remember, any property bought at auction is sold as seen and although
0:21:18 > 0:21:21Lloyd did look around beforehand, I'd always recommend
0:21:21 > 0:21:24that if you're not that knowledgeable yourself,
0:21:24 > 0:21:27you bring along a friend who is.
0:21:27 > 0:21:31Had you brought Ray, he might have noticed things like that. Do you think you would have noticed,
0:21:31 > 0:21:33or would have checked for things like copper pipes?
0:21:33 > 0:21:35Yes, I would have noticed all that, definitely.
0:21:35 > 0:21:38Now you've seen it, what do you think the issues are?
0:21:38 > 0:21:40Is there anything structurally worrying with this property?
0:21:40 > 0:21:44Not really. A few of the floors are a little dipped here and there.
0:21:44 > 0:21:48The brickwork and roof is sound. Obviously, it's got issues
0:21:48 > 0:21:51but there's nothing that can't be done and put right, really.
0:21:51 > 0:21:54What are you going to do to improve this? Let's start with downstairs.
0:21:54 > 0:21:57You've got that lovely big hallway which, to me, is very welcoming.
0:21:57 > 0:21:59What about in here?
0:21:59 > 0:22:01Longer term, we could actually build out backwards
0:22:01 > 0:22:05and that would create a lot more space, but structurally, leave it
0:22:05 > 0:22:08as it is for the time being, possibly take out the chimney breast upstairs
0:22:08 > 0:22:11and downstairs to make more room, especially in the upstairs bedrooms.
0:22:11 > 0:22:14The first thing I would do is take that wall down.
0:22:14 > 0:22:15Forget the chimney breast -
0:22:15 > 0:22:17that's where you're going to get your space.
0:22:17 > 0:22:18I will bear that in mind, Lucy,
0:22:18 > 0:22:21and speak to my building advisor here who can, I'm sure, help me.
0:22:21 > 0:22:26- Ray, what do you think of that idea? - Exactly my sentiments as well.
0:22:26 > 0:22:27I've already told him that.
0:22:27 > 0:22:30I think we're going to have to gang up on you. Ray and I...
0:22:30 > 0:22:33- I'm outnumbered here, Lucy. - Ray and I are in the same camp.
0:22:33 > 0:22:36Yes, you are. I don't think I've got much option.
0:22:37 > 0:22:42I don't want to be pushy, but the former loo is just a waste of space.
0:22:42 > 0:22:44Lloyd's wife has funded the project.
0:22:44 > 0:22:47Lloyd will project manage and his brother-in-law Ray
0:22:47 > 0:22:52will be lending a hand. How long does he envisage the work taking?
0:22:52 > 0:22:55Probably two and a half to three months.
0:22:55 > 0:22:57I've already had a few early quotes.
0:22:57 > 0:23:01Ray, will be helping out but I will be getting some trades in -
0:23:01 > 0:23:04electrician, plumber - and we've already started on the quote process.
0:23:04 > 0:23:06Coming from a financial background,
0:23:06 > 0:23:09Lloyd has included everything in his costings.
0:23:09 > 0:23:13He's set a budget of 25 to 30,000 to get the house
0:23:13 > 0:23:16ready for his growing family to move into.
0:23:16 > 0:23:19My wife has just had a baby just two weeks ago.
0:23:19 > 0:23:21We were in the birthing centre there
0:23:21 > 0:23:24and we happened to have the television on as she was in the birthing pool,
0:23:24 > 0:23:27and I glanced up, baby Jack was just being born
0:23:27 > 0:23:30and the credits were rolling for Homes Under The Hammer.
0:23:30 > 0:23:32You have brought a tear to my eye.
0:23:32 > 0:23:36So maybe, Lucy, I should have called him Martin. I don't know.
0:23:36 > 0:23:38Baby Martin.
0:23:38 > 0:23:40Don't do that.
0:23:43 > 0:23:44I can't wait to see
0:23:44 > 0:23:47if Lloyd manages to deliver all he's planned here.
0:23:49 > 0:23:52Lloyd has got a good little house here.
0:23:52 > 0:23:54Not so little, in fact,
0:23:54 > 0:23:57but there is work to do and, most importantly,
0:23:57 > 0:24:00will he bow to pressure and open up the second reception room
0:24:00 > 0:24:02into the old loo?
0:24:02 > 0:24:05You can find out if he does later in the show.
0:24:06 > 0:24:11Coming up in Keadby, Lincolnshire, it's time for some detective work.
0:24:11 > 0:24:16That needs investigating and so does whatever is going on with the floor.
0:24:16 > 0:24:20We return to Devon where there has been a bit of a barney.
0:24:20 > 0:24:23On the conservation side, we weren't allowed to have tiles
0:24:23 > 0:24:26on the roof, we had to have slate.
0:24:27 > 0:24:29And we are going back to Catford
0:24:29 > 0:24:32where Santa might find this house a challenge.
0:24:32 > 0:24:36We've taken out both chimney breasts upstairs.
0:24:38 > 0:24:42Time now to return to the picturesque village of Northlew
0:24:42 > 0:24:45in Devon, about seven miles from Okehampton.
0:24:45 > 0:24:49Earlier in the programme, Tony, an electrical engineer,
0:24:49 > 0:24:52paid £48,500 for this dilapidated barn.
0:24:54 > 0:24:57He hoped to get planning permission to convert it into a luxury house.
0:24:59 > 0:25:03Tony and his wife Linda live around 50 miles away in Totnes
0:25:03 > 0:25:07and had a professional team standing by to do the work.
0:25:09 > 0:25:12The main building work, we will let that out to a contractor
0:25:12 > 0:25:14and then I'll carry on with the electrical.
0:25:14 > 0:25:16We've got a plumber lined up,
0:25:16 > 0:25:18a planning consultant dealing with the planning
0:25:18 > 0:25:21and a firm of architects who will do the internal design.
0:25:21 > 0:25:24Apart from all the structural issues to deal with,
0:25:24 > 0:25:27the barn had very little outside space,
0:25:27 > 0:25:30so Tony planned to do a private deal to buy some land
0:25:30 > 0:25:33from the neighbouring cottage which would give the new house
0:25:33 > 0:25:36access from the road and a garden down to the river.
0:25:36 > 0:25:38It sounded lovely.
0:25:38 > 0:25:41Well, it's been nearly two years since we first visited
0:25:41 > 0:25:44what was virtually a shell, so how does it look now?
0:25:47 > 0:25:49Whoa, what a transformation.
0:25:49 > 0:25:52Just look what has been achieved inside.
0:26:02 > 0:26:04Tony successfully purchased the land from his neighbour,
0:26:04 > 0:26:06giving the new house its own entrance.
0:26:08 > 0:26:12But the planners refused Tony's application for an extension,
0:26:12 > 0:26:16so he's had to work within the footprint of the original barn.
0:26:19 > 0:26:20At the rear of the house,
0:26:20 > 0:26:23this beautiful living room looks stunning.
0:26:31 > 0:26:35The walls, ceiling and staircase all look great.
0:26:38 > 0:26:41Apart from the planning delays, the Environment Agency had concerns
0:26:41 > 0:26:44about the local River Lew flooding.
0:26:44 > 0:26:49Tony had the added cost of employing engineers to predict the flood risk.
0:26:49 > 0:26:52But although their report said it seemed unlikely,
0:26:52 > 0:26:55the planners insisted the ground floor had to be raised.
0:26:56 > 0:26:59You can clearly see this at the living room end,
0:26:59 > 0:27:02where this window has had to replace the original door.
0:27:03 > 0:27:07With all that added expense, I'm surprised Tony didn't hit the roof.
0:27:07 > 0:27:10We started off by reducing the floor level
0:27:10 > 0:27:14and taking out all the mud, putting in a new concrete floor,
0:27:14 > 0:27:19and then increasing the floor level by another half a metre
0:27:19 > 0:27:22up to the floor level you see now.
0:27:22 > 0:27:26This was purely done to eliminate the flood risk.
0:27:26 > 0:27:29Upstairs, the level of craftsmanship
0:27:29 > 0:27:32and materials used is just as impressive.
0:27:37 > 0:27:41There are two bedrooms and this well-equipped bathroom.
0:27:41 > 0:27:44Tony has kept as many of the original timbers as possible.
0:27:44 > 0:27:47The planning office was very strict about the materials
0:27:47 > 0:27:49and the look of the property.
0:27:51 > 0:27:53On the conservation side,
0:27:53 > 0:27:59we weren't allowed to have tiles on the roof, we had to have slate.
0:27:59 > 0:28:02We were governed with the type of paint
0:28:02 > 0:28:04and the colours that we could use outside
0:28:04 > 0:28:07and we weren't allowed to have our extension.
0:28:07 > 0:28:10I'm impressed that, against all those constraints,
0:28:10 > 0:28:13Tony still managed to make a wonderful house here.
0:28:13 > 0:28:17Buying the land from the neighbour was a great thing to do.
0:28:17 > 0:28:19As you can see, a lot of work has been done
0:28:19 > 0:28:21on the exterior of the property -
0:28:21 > 0:28:24re-plastering, redecorating,
0:28:24 > 0:28:28new doors and windows made from reclaimed pitch pine.
0:28:28 > 0:28:30These were made by a local joinery works.
0:28:32 > 0:28:36Tony spotted an ad for a local timber yard that was closing.
0:28:37 > 0:28:41It had a large tree trunk that he had cut into planks for the floor,
0:28:41 > 0:28:44which complements the restored, original timbers very well.
0:28:46 > 0:28:50How much has the conversion cost? Did he stick to his budget?
0:28:50 > 0:28:54I think I said something between 50 and 60,000.
0:28:54 > 0:28:57We more or less kept to it.
0:28:57 > 0:28:59The only thing that pushed it over, say, a couple of thousand,
0:28:59 > 0:29:03would have been the additional cost from the planning consultants.
0:29:03 > 0:29:07All in all, Tony spent around 62,000, which,
0:29:07 > 0:29:10added to the £45,000 for the garden,
0:29:10 > 0:29:13plus the £48,500 he paid at auction
0:29:13 > 0:29:16takes his total investment to £155,500.
0:29:16 > 0:29:19What has been his role here?
0:29:19 > 0:29:22Obviously, the electrical installation
0:29:22 > 0:29:26and general building, labouring and a bit of plasterboard fixing.
0:29:26 > 0:29:29I did the carpentry in the bathroom.
0:29:32 > 0:29:33We've invited two local estate agents
0:29:33 > 0:29:35to come and give us their opinions
0:29:35 > 0:29:37of this lovely barn conversion.
0:29:39 > 0:29:42The finish is spectacular. I love the character of the beams.
0:29:42 > 0:29:46Beautiful decor inside, very spacious as well.
0:29:46 > 0:29:47Downstairs, open-plan layout.
0:29:47 > 0:29:51I love the property. It's obviously been done to quite a good standard.
0:29:51 > 0:29:54Slight downside, it is a bit on the small side
0:29:54 > 0:29:57but it's going to work perfectly from a second home point of view.
0:29:57 > 0:29:59Exterior, I wouldn't have chosen green,
0:29:59 > 0:30:02I would've painted the outside a more neutral colour of cream
0:30:02 > 0:30:06and maybe kept the stone brickwork as an original feature.
0:30:07 > 0:30:10How much could this house be worth on the local sales market?
0:30:10 > 0:30:14More than the £155,500 Tony has invested in it?
0:30:15 > 0:30:17In the current market,
0:30:17 > 0:30:21it is my opinion we should achieve somewhere in the region of £170,000.
0:30:21 > 0:30:22In the current sales market,
0:30:22 > 0:30:26we'd be happy to achieve in the region of 170 and £175,000.
0:30:26 > 0:30:30Those valuations would give Tony a gross profit,
0:30:30 > 0:30:33before the usual selling expenses and taxes,
0:30:33 > 0:30:37of between £14,500 and £19,500.
0:30:39 > 0:30:41Yes, a little bit on the low side.
0:30:41 > 0:30:43We'd hoped for a little bit more than that.
0:30:43 > 0:30:45We'll try and sell it to start with.
0:30:45 > 0:30:49If that's not a success, we will let it in the short term.
0:30:49 > 0:30:51How much rental income
0:30:51 > 0:30:54can the estate agents see the house producing?
0:30:54 > 0:30:57In the rental market, this property would achieve
0:30:57 > 0:31:00between £625 and £650 per calendar month.
0:31:00 > 0:31:03I'd expect to achieve £600 per calendar month.
0:31:03 > 0:31:07That is a potential yield of 4 to 5%
0:31:07 > 0:31:10if he decides to put the house on the rental market.
0:31:10 > 0:31:13But, after two years on this project,
0:31:13 > 0:31:1752 miles from his own home, what is next for Tony?
0:31:18 > 0:31:22Well, immediate plans, go back to doing my electrical contracting work
0:31:22 > 0:31:26and just keep an eye out at the auctions, see what's coming along.
0:31:29 > 0:31:32I'm in the Lincolnshire village of Keadby,
0:31:32 > 0:31:33three miles from Scunthorpe.
0:31:36 > 0:31:39I'm here to see a three-bedroomed semi-detached
0:31:39 > 0:31:42which had a guide price of £55,000.
0:31:42 > 0:31:44This is it, apparently built in the 1950s
0:31:44 > 0:31:48to house workers from nearby Keadby power station.
0:31:48 > 0:31:52So will the property have the capacity for transformation,
0:31:52 > 0:31:56or will its current condition leave the new owners lighter?
0:31:57 > 0:32:00Let's conduct our investigations.
0:32:01 > 0:32:05# We're going to rock down to Electric Avenue... #
0:32:05 > 0:32:08The exterior of the house looks pretty good.
0:32:08 > 0:32:10The garden, not so much.
0:32:10 > 0:32:14Will it be a light bulb moment as I come through the front door?
0:32:14 > 0:32:18Well, yes, not too bad. A nice big entrance hall here.
0:32:18 > 0:32:21I really like that in a property, somewhere to hang your coats,
0:32:21 > 0:32:24leave your shoes, kids' bikes, that kind of stuff.
0:32:24 > 0:32:28Stairs up to the bedrooms and through into the front room.
0:32:28 > 0:32:32Looks like the radiator is fairly new, which is good news.
0:32:32 > 0:32:34As a space, not bad.
0:32:34 > 0:32:38You have this bay window. But, having said all that good stuff,
0:32:38 > 0:32:43some very nasty cracks and clearly lots and lots of damp going on here.
0:32:43 > 0:32:45Seems like it's coming down.
0:32:45 > 0:32:49That needs investigating and so does whatever's going on with the floor.
0:32:49 > 0:32:52But I'll have a look round the house first and come back to that.
0:32:52 > 0:32:54So damp in the walls
0:32:54 > 0:32:57and the chimney breast, by the look of things. Not a good start.
0:32:59 > 0:33:02So rear reception room there and then through to the kitchen.
0:33:02 > 0:33:06This is a bit of a downside to this property, as far as I'm concerned,
0:33:06 > 0:33:09because it seems really small. But I think there's a simple solution.
0:33:09 > 0:33:13Take out this wall, put some sort of supporting beam across the top
0:33:13 > 0:33:17to create a lovely kitchen/family living area.
0:33:17 > 0:33:19That would totally transform the downstairs.
0:33:19 > 0:33:22Let's take a look upstairs.
0:33:22 > 0:33:25Off the kitchen, the former pantry could provide more valuable space,
0:33:25 > 0:33:28plus there's an outside loo and coal store.
0:33:30 > 0:33:34Meanwhile, upstairs, there are three bedrooms.
0:33:34 > 0:33:40Two are doubles and one is a single.
0:33:40 > 0:33:43The bathroom is on the compact and bijou side
0:33:43 > 0:33:47for a three-bed house, but if you could relocate the hot water tank,
0:33:47 > 0:33:50you might be able to move things around a bit.
0:33:50 > 0:33:52So, space-wise, not a bad property.
0:33:54 > 0:33:56Back down here in the lounge,
0:33:56 > 0:34:00and that problem with the floorboards I mentioned earlier.
0:34:00 > 0:34:02It looks to me like we might have a problem
0:34:02 > 0:34:07with...woodworm.
0:34:07 > 0:34:09Now, "woodworm" is actually an all-encompassing term
0:34:09 > 0:34:12for several types of wood-boring beetle,
0:34:12 > 0:34:17the most common being the common furniture beetle.
0:34:19 > 0:34:23You can see the damage it is doing to the wood here.
0:34:23 > 0:34:25This powder is a clear indication
0:34:25 > 0:34:30that there's work being carried out by the little blighters as we speak.
0:34:30 > 0:34:34There might even be some proof of it over here
0:34:34 > 0:34:36because they try to escape towards the light, and...
0:34:36 > 0:34:39Yeah. Look on the window ledge here.
0:34:39 > 0:34:43We've actually got... In fact, we have little beetles here.
0:34:43 > 0:34:46One of them here looks like he is still alive. OK.
0:34:46 > 0:34:48It is not difficult to treat.
0:34:48 > 0:34:50It's a simple pesticide that has to be sprayed down.
0:34:50 > 0:34:54You can do it yourself or you can get a proper firm in to do it,
0:34:54 > 0:34:56but, either way, it has to be treated
0:34:56 > 0:34:59because otherwise, your whole house will turn to dust.
0:35:02 > 0:35:06Get the professionals in and it could cost you about £1,000
0:35:06 > 0:35:08to get the house sprayed from top to bottom.
0:35:08 > 0:35:12But this is a problem you really can't ignore.
0:35:12 > 0:35:16The property went to auction with a guide price of £55,000.
0:35:16 > 0:35:18We asked a local estate agent to look around
0:35:18 > 0:35:21and give us his thoughts.
0:35:21 > 0:35:24I think the house requires a scheme of modernisation,
0:35:24 > 0:35:27probably a new kitchen and new bathroom as well,
0:35:27 > 0:35:28which would hopefully spruce it up
0:35:28 > 0:35:31and make a nice, modern, family property.
0:35:31 > 0:35:35Once it was done up, how could it fare on the rental market?
0:35:35 > 0:35:40We would expect to rent the property quite quickly
0:35:40 > 0:35:44and we would anticipate achieving a rental in the region of £450 per calendar month.
0:35:44 > 0:35:47What about the resale market?
0:35:49 > 0:35:51At the moment, judging on the current climate,
0:35:51 > 0:35:54if the property was refurbished to a good standard,
0:35:54 > 0:35:57we would expect to achieve in the region of £80,000.
0:35:59 > 0:36:02Well, a few issues to resolve on this one -
0:36:02 > 0:36:04the damp problem and those little beetles.
0:36:04 > 0:36:05Apart from that, it's a good house
0:36:05 > 0:36:08and I think it would make an excellent rental opportunity.
0:36:08 > 0:36:11Let's see who agreed when it went under the hammer.
0:36:12 > 0:36:14Lot number eight.
0:36:14 > 0:36:18A semi-detached three-bedroom property in need of refurbishment,
0:36:18 > 0:36:22brought to the market with a guide price of £55,000.
0:36:22 > 0:36:25Who will start me at 40,000 for this one?
0:36:25 > 0:36:29£40,000, I have. At 40,000. At 40,000.
0:36:29 > 0:36:3241, 41, 41, 42...
0:36:32 > 0:36:34There was lots of interest in this at the auction
0:36:34 > 0:36:38and we rejoin the bidding at £54,000.
0:36:38 > 0:36:44At £54,000, 55, fresh place. You are both out at the back of the room.
0:36:44 > 0:36:47At £55,000, at £55,000.
0:36:47 > 0:36:4956, on the telephone.
0:36:49 > 0:36:5457, 57, at 57,000, at 57,000,
0:36:54 > 0:36:5658, 59,
0:36:56 > 0:37:02at 59,000, at 59, 60, 61.
0:37:02 > 0:37:05Against you on the telephone. 62, 62, 63.
0:37:05 > 0:37:09At 63, at £63,000.
0:37:09 > 0:37:10Are you done?
0:37:10 > 0:37:16At £63,000, seated in the front here, at £63,000.
0:37:16 > 0:37:20Once, £63,000 twice,
0:37:20 > 0:37:22third, and the last time of asking, are we all done?
0:37:22 > 0:37:24Away it goes at £63,000.
0:37:24 > 0:37:26Thank you, sir, your number.
0:37:28 > 0:37:32'That successful bid of 63,000 was made by Rob,
0:37:32 > 0:37:34'who attended the auction with his wife Steph.
0:37:36 > 0:37:41'Rob is a joiner and Steph is a care assistant at a local hospital.
0:37:41 > 0:37:44'I met them back at the house to find out their plans.'
0:37:44 > 0:37:48- Steph, Rob, lovely to meet you both. - Thank you.- Congratulations.
0:37:48 > 0:37:51Tell me why you wanted to buy this place.
0:37:51 > 0:37:55We wanted somewhere to rent out and just to do it up.
0:37:55 > 0:37:58Right, is it something you've done before?
0:37:58 > 0:38:00We've done both our daughters' houses.
0:38:00 > 0:38:03They both bought a house and we've both... And they helped as well.
0:38:03 > 0:38:07- We've done quite a bit in there. - Why this particular house, then?
0:38:07 > 0:38:12- I've worked in it about 30 years ago. - You worked in it? Doing what?
0:38:12 > 0:38:16- A bit of joinery work, the old wooden windows.- How funny.
0:38:16 > 0:38:19At what point did you realise you remembered the house?
0:38:19 > 0:38:20When I saw it was for sale.
0:38:20 > 0:38:24It came back to me then that I'd done a few bits of jobs and pieces.
0:38:24 > 0:38:26I thought I may as well go for it.
0:38:26 > 0:38:31- What was it you liked about it, Steph?- I hadn't actually seen it.
0:38:31 > 0:38:37- You hadn't seen it?- No. - Until when?- Until a week ago.
0:38:37 > 0:38:39- After you'd bought it?- Yes.- Wow.
0:38:39 > 0:38:42How come you hadn't seen it?
0:38:42 > 0:38:43I didn't want it.
0:38:45 > 0:38:47I didn't want to do it at first.
0:38:47 > 0:38:49So what changed your mind?
0:38:49 > 0:38:51When did you switch from being fairly negative
0:38:51 > 0:38:52to being quite positive?
0:38:52 > 0:38:58Once I'd seen it and it doesn't need that much doing to it.
0:38:58 > 0:39:02- Right.- Our second daughter's that we did was a right mess
0:39:02 > 0:39:04and it was a lot of work.
0:39:04 > 0:39:09- Yeah. We had to take all the walls down, didn't we?- Yes.- All the walls?
0:39:09 > 0:39:12You walked through the front door, you could see the tiles on the roof.
0:39:12 > 0:39:16Right. It's no wonder that you were slightly put off by that!
0:39:16 > 0:39:18That sounds like a major job.
0:39:18 > 0:39:22Fingers crossed for Steph's sake that this doesn't become
0:39:22 > 0:39:24a much bigger job than it looks.
0:39:24 > 0:39:27Rob's joinery skills and help from his son,
0:39:27 > 0:39:30who is an electrician, should get them off to a good start.
0:39:31 > 0:39:33So moving forward from this point,
0:39:33 > 0:39:36tell me exactly what you're going to do to sort it out.
0:39:36 > 0:39:39Try and make a bit more room in the kitchen if we can.
0:39:39 > 0:39:43- Could even end up knocking this wall through.- Make it into a long...
0:39:43 > 0:39:47You've got a thing about houses with no walls, haven't you?
0:39:47 > 0:39:51Rob's penchant for removing walls might make Steph nervous,
0:39:51 > 0:39:54but what else has he got planned?
0:39:54 > 0:39:56- Definitely new kitchen, new bathroom. - New bathroom.
0:39:56 > 0:39:59The tank is in the bathroom. There is no room at the moment
0:39:59 > 0:40:02so that will either go in the loft or somewhere else.
0:40:02 > 0:40:05Just generally tidy up and modernise it.
0:40:05 > 0:40:07You've obviously got beetles, woodworm.
0:40:07 > 0:40:09I knew it was in the front room,
0:40:09 > 0:40:11so I assumed it would be all over downstairs.
0:40:11 > 0:40:14I couldn't see any signs of it upstairs when I had a look,
0:40:14 > 0:40:17so it's not a big job taking the floor out and replacing it.
0:40:17 > 0:40:19- Well, not when you're a joiner.- No.
0:40:19 > 0:40:21What's the costs of the work, to do it up?
0:40:21 > 0:40:26Rough estimate, between 6,000 and 7,000, I think, at tops.
0:40:26 > 0:40:29'With his purchase price of 63,000,
0:40:29 > 0:40:32'that would take his total spend to 70,000,
0:40:32 > 0:40:34'meaning a possible profit of £10,000
0:40:34 > 0:40:36'based on the estate agents' valuation,
0:40:36 > 0:40:39'before taxes and expenses.
0:40:39 > 0:40:42'Rob's giving himself six months to do the work,
0:40:42 > 0:40:44'fitting it around his day job.
0:40:44 > 0:40:46'He seems quietly confident about this one.
0:40:46 > 0:40:49'As long as the woodworm isn't throughout the whole house,
0:40:49 > 0:40:52'and that damp in the living room checks out OK,
0:40:52 > 0:40:55'I think that turning this property around
0:40:55 > 0:40:56'might be straightforward enough.
0:40:56 > 0:40:59'Rob just has to make sure,
0:40:59 > 0:41:01'and keep Steph on side.'
0:41:04 > 0:41:07And then what about plans for the future? Any more?
0:41:07 > 0:41:09Oh, wait and see.
0:41:09 > 0:41:12Well, listen, congratulations, good luck with it,
0:41:12 > 0:41:15- and we look forward to seeing how you get on.- Thank you very much.
0:41:17 > 0:41:21Well, it seems like Rob is going to be under quite a lot of pressure
0:41:21 > 0:41:24with this one, having bought it without Steph's approval.
0:41:24 > 0:41:27He's got to make sure he doesn't end up taking all the walls out
0:41:27 > 0:41:31and creating the same kind of chaos as he did last time.
0:41:31 > 0:41:33Will they still be on talking terms when we return?
0:41:33 > 0:41:35You can find out later in the show.
0:41:38 > 0:41:43The big question is, have our buyers made money from their investments?
0:41:43 > 0:41:46Have their efforts at improving them paid off?
0:41:46 > 0:41:49Well, time has passed, it's the moment of truth.
0:41:49 > 0:41:50Let's go back and find out.
0:41:50 > 0:41:53'Back now to Catford in south London,
0:41:53 > 0:41:56'where Lloyd bought this three-bed mid-terrace as an investment
0:41:56 > 0:41:58'on behalf of his wife.
0:41:58 > 0:42:00'While on a break from his banking career,
0:42:00 > 0:42:04'Lloyd enlisted the help of his builder brother-in-law, Ray,
0:42:04 > 0:42:07'to turn it into a short-term home for himself, his wife,
0:42:07 > 0:42:09'and their new baby,
0:42:09 > 0:42:12'but with the view of letting in the long term.
0:42:12 > 0:42:15'But he'd missed something vital when viewing the property
0:42:15 > 0:42:17'that made the colour drain from his cheeks.'
0:42:17 > 0:42:21I didn't notice all the pipe work under the floors had been ripped out.
0:42:21 > 0:42:23The other thing,
0:42:23 > 0:42:26which you may have noticed, up in the upstairs bathroom -
0:42:26 > 0:42:28I think the bathroom was downstairs -
0:42:28 > 0:42:31when you look at the soil stack, there's just wall behind there,
0:42:31 > 0:42:33and the pipe has been made to look like it was a bathroom...
0:42:33 > 0:42:35- And it's not!- And it's not there.
0:42:41 > 0:42:45'So the house was a bigger challenge than Lloyd had initially thought.
0:42:45 > 0:42:49'He planned to remove the chimney breasts upstairs and down,
0:42:49 > 0:42:52'but Ray and I could see a much simpler solution
0:42:52 > 0:42:54'to making some extra space.'
0:42:56 > 0:42:58The first thing I'd do is take that wall down.
0:42:58 > 0:43:01Forget the chimney breast - that's where you'll get your space.
0:43:01 > 0:43:04Exactly my sentiments as well. I've already told him that.
0:43:04 > 0:43:06Well, I think we'll have to gang up on you.
0:43:06 > 0:43:07I think I'm outnumbered here!
0:43:07 > 0:43:10Because Ray and I are in the same camp.
0:43:10 > 0:43:12Yes, you are, and I think I've not got much option.
0:43:12 > 0:43:15Well, no-one could accuse me of being subtle,
0:43:15 > 0:43:17but did he listen to us in the end?
0:43:20 > 0:43:22Over four months have passed,
0:43:22 > 0:43:25and we meet Lloyd again, back at the house...
0:43:25 > 0:43:28where the replacement windows and doors
0:43:28 > 0:43:30give a much better first impression.
0:43:34 > 0:43:36In the front living room...
0:43:36 > 0:43:39Yes! The chimney breast has disappeared...
0:43:42 > 0:43:45..and the rotten floors have been replaced.
0:43:46 > 0:43:49From the hall, you can see the door to the former toilet
0:43:49 > 0:43:51has been bricked up...
0:43:54 > 0:43:56..and, just as Ray and I had hoped,
0:43:56 > 0:44:00the wall in the dining room has been removed.
0:44:00 > 0:44:03Just look at what a difference that extra space has made!
0:44:09 > 0:44:13That small, damp, original kitchen has been extended
0:44:13 > 0:44:15into this fabulous kitchen/diner...
0:44:21 > 0:44:24..and the opening to the former kitchen has been removed.
0:44:24 > 0:44:26It's been win-win here.
0:44:26 > 0:44:29Lloyd's lost the chimney, and Ray and I lost the wall,
0:44:29 > 0:44:33and, luckily, Lloyd's delighted with the result.
0:44:35 > 0:44:38Obviously, the now-famous wall, stud wall,
0:44:38 > 0:44:42came down to open this area out, to give a much bigger area,
0:44:42 > 0:44:44maybe a seating area, or what have you.
0:44:44 > 0:44:47And then over here, by the sink,
0:44:47 > 0:44:50there used to be a step down into the kitchen.
0:44:50 > 0:44:54That's been opened up and raised as well, so it's all on one level,
0:44:54 > 0:44:57so you have this big, open-plan, sort of L-shaped kitchen/diner,
0:44:57 > 0:45:00which I'm really pleased with.
0:45:00 > 0:45:04This house, that Lloyd's wife Louisa paid £214,000 for,
0:45:04 > 0:45:08really needed a total refit.
0:45:08 > 0:45:11The three bedrooms now have new windows and radiators
0:45:11 > 0:45:14and a boiler's been installed up in the loft.
0:45:14 > 0:45:17That phantom bathroom now has new appliances,
0:45:17 > 0:45:21and has been connected to the waste and water pipes.
0:45:21 > 0:45:25It wasn't just downstairs that got some more floor space...
0:45:25 > 0:45:29Upstairs, if you remember, we had a doorway going through here,
0:45:29 > 0:45:33and it was a kind of redundant space which then led into this bedroom.
0:45:33 > 0:45:36And then, obviously, on this wall, you had the chimney breast.
0:45:36 > 0:45:40So we've taken out both chimney breasts upstairs as well,
0:45:40 > 0:45:43and used this space, moved the doorway,
0:45:43 > 0:45:46and then used the space that we've got here,
0:45:46 > 0:45:49so there's a cupboard/wardrobe on both sides, just for storage.
0:45:49 > 0:45:52Outside, the garden's taken a lot of work,
0:45:52 > 0:45:54but the new fencing and grass
0:45:54 > 0:45:57adds to an already impressive appearance here.
0:45:57 > 0:46:00Lloyd's done a lot of the work himself,
0:46:00 > 0:46:03so how big a part did Ray play?
0:46:03 > 0:46:05Ray came up and helped me on a few things
0:46:05 > 0:46:08where it needed specialist building knowledge,
0:46:08 > 0:46:11but he's guided me throughout. I've been on the phone to him a lot.
0:46:11 > 0:46:15And I've had my dad here working with me every day,
0:46:15 > 0:46:17pretty much for the last four months.
0:46:17 > 0:46:21So I've project managed it and had trades coming in and out...
0:46:21 > 0:46:27Lloyd, his wife Louisa, and baby Jack, who's now four months old,
0:46:27 > 0:46:30have now decided not to move in to make it their family home.
0:46:30 > 0:46:33They'll let the house instead.
0:46:33 > 0:46:35Lloyd's been involved with a lot of the refurbishment,
0:46:35 > 0:46:38and helped the builders install a steel beam up in the loft,
0:46:38 > 0:46:43in preparation for a loft conversion sometime in the future.
0:46:43 > 0:46:46So did he encounter any nasty surprises?
0:46:46 > 0:46:50There were, as you always get, some unexpected problems.
0:46:50 > 0:46:53The floor in the room we're standing in now, the lounge,
0:46:53 > 0:46:56the joists were all rotten, there was a bit of wet and dry rot,
0:46:56 > 0:46:59so I had to take all of that up and redo the floors,
0:46:59 > 0:47:02put in new joists and flooring.
0:47:02 > 0:47:03That's all extra money.
0:47:03 > 0:47:06So with a damp course injection at the front and back,
0:47:06 > 0:47:11plus the replacement windows and doors costing five and a half grand,
0:47:11 > 0:47:14how has Lloyd's £25,000-£30,000 budget fared?
0:47:14 > 0:47:19Probably at about sort of 28, 29 now.
0:47:19 > 0:47:22And I've included everything in that -
0:47:22 > 0:47:24interest payments, the works.
0:47:24 > 0:47:30That 29 grand budget takes the total investment here to 243,000.
0:47:32 > 0:47:37Time to get some expert property advice from two local estate agents.
0:47:37 > 0:47:40What do they think of the finish Lloyd's achieved here?
0:47:40 > 0:47:43Really good, actually. Done it up to a high standard.
0:47:43 > 0:47:46Bathroom and kitchen are fantastic, and I really like the garden.
0:47:46 > 0:47:48What a fantastic transformation!
0:47:48 > 0:47:51He's done a really good job, from start to stop.
0:47:51 > 0:47:53You can see he's put really good attention to detail.
0:47:53 > 0:47:56The thing that really stands out in this house is the kitchen/diner.
0:47:56 > 0:47:59I think that will really appeal to both sales and lettings.
0:47:59 > 0:48:01So, will the house be worth more
0:48:01 > 0:48:05than the £250,000 stamp duty threshold?
0:48:05 > 0:48:09Remember, they have £243,000 invested here.
0:48:09 > 0:48:12Worst case is obviously 250, because of that stamp duty.
0:48:12 > 0:48:17Best case scenario, we've just sold one at £270,000.
0:48:17 > 0:48:19We'd sell the property at £250,000.
0:48:19 > 0:48:22If this were sold for 270,000,
0:48:22 > 0:48:26it would generate a gross profit of £27,000.
0:48:26 > 0:48:31Even at 250,000, there's a seven grand gross profit.
0:48:32 > 0:48:36I knew that there is that sort of stickiness around the 250 threshold,
0:48:36 > 0:48:37but it's irrelevant, really,
0:48:37 > 0:48:39because we're not selling, we're going to rent.
0:48:39 > 0:48:43Lloyd's wife Louisa has let the house to an old friend
0:48:43 > 0:48:48for £1,250 per calendar month - a yield of over 6%.
0:48:48 > 0:48:52So now his career break from banking is coming to an end,
0:48:52 > 0:48:56is Lloyd happy with the result? Has it been worthwhile?
0:48:56 > 0:49:00It has. It's been incredibly rewarding personally,
0:49:00 > 0:49:02and I would definitely do it again.
0:49:02 > 0:49:05Probably, you know, back in a job,
0:49:05 > 0:49:07and then managing it more from the sidelines,
0:49:07 > 0:49:10but I've certainly got the bug for property,
0:49:10 > 0:49:13and once you've got the bug, I think you never stop wanting to do it,
0:49:13 > 0:49:16so there will definitely be more in the future years.
0:49:19 > 0:49:22'Back now to the Lincolnshire town of Keadby,
0:49:22 > 0:49:24'about three miles from Scunthorpe.
0:49:25 > 0:49:27'This 1950s three-bed semi
0:49:27 > 0:49:31'was originally built to house workers from Keadby power station.
0:49:33 > 0:49:38'Local joiner Rob and his wife Steph, a care assistant at a local hospital,
0:49:38 > 0:49:40'paid £63,000 for the house.
0:49:42 > 0:49:45'Rob planned to refurbish it as a bit of a hobby at weekends
0:49:45 > 0:49:47'and then rent it out.
0:49:47 > 0:49:49'They both had a little DIY experience...'
0:49:54 > 0:49:56We've done both our daughters' houses.
0:49:56 > 0:50:00They both bought a house and we've both... And they helped as well.
0:50:00 > 0:50:02- Right.- And we've done quite a bit in there.
0:50:02 > 0:50:06- We had to take all the walls down, didn't we?- Yeah.- All the walls?
0:50:06 > 0:50:10You walked through the front door, you could see titles on the roof.
0:50:10 > 0:50:14'This house had damp and woodworm that would need attention.
0:50:14 > 0:50:17'But, hopefully, the roof could stay in place.'
0:50:17 > 0:50:19Tell me, exactly, what you're going to do to sort it out.
0:50:19 > 0:50:22We'll try to make a bit more room in the kitchen, if we can.
0:50:22 > 0:50:27I don't know exactly how yet, unless we bring a bit of that wall down.
0:50:27 > 0:50:30We could even end up knocking this wall through.
0:50:30 > 0:50:32Making it into, like, a long...
0:50:32 > 0:50:35- You got a thing for houses with no walls, haven't you? - THEY LAUGH
0:50:38 > 0:50:41'Well, it's now 15 months later,
0:50:41 > 0:50:44'so the work hasn't exactly powered forward.
0:50:44 > 0:50:47'But I reckon the new fencing, driveway and gravel
0:50:47 > 0:50:49'has improved its kerb appeal.
0:50:54 > 0:50:57'Inside, Rob has removed the wall between the two reception rooms,
0:50:57 > 0:50:59'and it's a great improvement.
0:51:04 > 0:51:07'At the back of the house, the small kitchen has been extended.
0:51:10 > 0:51:12'Rob's removed the wall to the pantry
0:51:12 > 0:51:16'and knocked through to the former loo and coal store,
0:51:16 > 0:51:19'bricking up the outside doors and adding a new window.
0:51:23 > 0:51:24'But, as Rob explains,
0:51:24 > 0:51:29'the front room had some major problems that needed solving.'
0:51:29 > 0:51:32We had the big damp patch on the wall,
0:51:32 > 0:51:36but it was from a few years ago, it was from the lead flashing,
0:51:36 > 0:51:38which had already been repaired, so it was just a stain, really.
0:51:38 > 0:51:41It's been re-plastered over and covered up.
0:51:41 > 0:51:44The biggest problem was the woodworm in the floor.
0:51:44 > 0:51:50Once we'd stripped everything out, we sprayed for dry rot and woodworm.
0:51:50 > 0:51:53We did it ourselves to keep the costs down.
0:51:53 > 0:51:56Then, being a joiner, I replaced all the floors myself.
0:52:01 > 0:52:03'The cause of the damp in the chimney breast
0:52:03 > 0:52:07'was tracked down to damage around the flashing on the roof.
0:52:07 > 0:52:11'Once that was replaced, the house has started to dry out.
0:52:11 > 0:52:15'Upstairs, Rob left the chimney breasts in the two double bedrooms.
0:52:17 > 0:52:21'All three bedrooms have been decorated in neutral colours.
0:52:23 > 0:52:26'For once, Steph was happy to take out some wall,
0:52:26 > 0:52:28'even if it was just a little bit.'
0:52:30 > 0:52:32It did have a window here,
0:52:32 > 0:52:34so we thought it would be best to put patio doors in
0:52:34 > 0:52:38so that you can just walk straight out onto your garden.
0:52:39 > 0:52:43'It took three skips to clear all the clutter from the garden.
0:52:43 > 0:52:46'The new pathways and fencing look great.
0:52:46 > 0:52:49'There's still some cosmetic work to do, but the structure's there,
0:52:49 > 0:52:53'and there was even more rubbish produced up in the bathroom.'
0:52:53 > 0:52:56In the bathroom, there's an old tank in the corner,
0:52:56 > 0:53:00so we stripped that out, went right back to the brickwork.
0:53:00 > 0:53:04We finished off with some nice tiles and flooring,
0:53:04 > 0:53:07and I'm happy with the finish.
0:53:07 > 0:53:10'Rob originally thought it would take about six months
0:53:10 > 0:53:11'to refurbish the house,
0:53:11 > 0:53:14'as they'd be doing it at weekends and at night.
0:53:14 > 0:53:16'But it ended up taking 14 months.
0:53:16 > 0:53:19'They employed a plasterer to skim the walls,
0:53:19 > 0:53:22'and a bricklayer for a couple of days,
0:53:22 > 0:53:24'but apart from that, who else helped?'
0:53:24 > 0:53:26We've had our daughters in...
0:53:26 > 0:53:30- Our daughters have both helped, grandson...- Granddaughter.
0:53:30 > 0:53:33My son is an electrician, so it kept costs down.
0:53:33 > 0:53:35'It's Rob's son who is responsible
0:53:35 > 0:53:38'for the numerous power sockets throughout the house,
0:53:38 > 0:53:41'and there are TV connections in every bedroom.'
0:53:41 > 0:53:45# Television, new religion
0:53:45 > 0:53:49# Let everyone sing hallelujah... #
0:53:49 > 0:53:52'What about Steph? Has she been lending a hand?'
0:53:52 > 0:53:54Well, I usually get all the horrible jobs,
0:53:54 > 0:53:57like the sanding down and the washing down,
0:53:57 > 0:53:59but I did pick all the furnishings.
0:53:59 > 0:54:02Yeah, she made a good job with the choices.
0:54:02 > 0:54:03'How much has it all cost?'
0:54:03 > 0:54:06Sticking to the budget didn't go very well.
0:54:06 > 0:54:11I think I said 6,000 or 7,000, and we're about 11,500.
0:54:11 > 0:54:16By the time we've finished it, we'll be nearly 12,000.
0:54:16 > 0:54:19'Added to the £63,000 they paid at the auction,
0:54:19 > 0:54:22'that takes the total investment here to £75,000.
0:54:23 > 0:54:26'They're undecided whether to let the house or sell it.
0:54:28 > 0:54:32'So maybe two local estate agents' opinions and valuations
0:54:32 > 0:54:34'will help them decide.'
0:54:36 > 0:54:41The property has been finished to an excellent standard by the owners -
0:54:41 > 0:54:43kitchens, bathrooms, all to a high spec -
0:54:43 > 0:54:46and would suit tenants or first-time buyers,
0:54:46 > 0:54:48and would make an ideal home for either.
0:54:48 > 0:54:52I feel the developers have a good eye for detail.
0:54:52 > 0:54:55The amount of additional sockets that they've put in all the bedrooms
0:54:55 > 0:54:59and the fact that they've put a TV aerial socket in each bedroom
0:54:59 > 0:55:02obviously will be appealing to all ages and all families.
0:55:02 > 0:55:06'How much of rental income could the place generate?'
0:55:06 > 0:55:09If we were putting the property on the market to rent,
0:55:09 > 0:55:14I would advertise the property at £475 per calendar month.
0:55:14 > 0:55:17I would estimate we could ask a rental value
0:55:17 > 0:55:20of £485 per calendar month.
0:55:20 > 0:55:23'That's a rental yield of over 7.5%,
0:55:23 > 0:55:27'even at the lower valuation of £475 per calendar month.'
0:55:27 > 0:55:28It's a bit better than I thought.
0:55:28 > 0:55:32I was thinking about 450, so I'm happy with that.
0:55:32 > 0:55:36'Will the sell-on valuations be more than the £75,000
0:55:36 > 0:55:38'the couple have invested here?'
0:55:38 > 0:55:41The property has been completed to a very high standard.
0:55:41 > 0:55:46Because of that, I feel the property can go on the market up to £100,000.
0:55:46 > 0:55:49Within this area, there is a ceiling of what we can realistically ask
0:55:49 > 0:55:51for a property of this type,
0:55:51 > 0:55:54and my valuation of it would be around £100,000.
0:55:54 > 0:55:59'So a potential £25,000 gross profit before selling expenses.
0:56:00 > 0:56:02'How does that sound, guys?'
0:56:02 > 0:56:05- Well happy.- Wow!
0:56:05 > 0:56:07I was expecting about 90.
0:56:07 > 0:56:10Yeah, there's a little bit of profit there.
0:56:10 > 0:56:14'Always nice! So might Rob now consider selling?'
0:56:15 > 0:56:17If we could sell it quickly,
0:56:17 > 0:56:20if somebody could come up and make an offer and get rid of it quickly,
0:56:20 > 0:56:22I think I might be tempted then,
0:56:22 > 0:56:24but it could be, with the market the way it is,
0:56:24 > 0:56:25it could be renting it.
0:56:27 > 0:56:30'After 14 months' work, what's next for the couple?
0:56:30 > 0:56:33'Would they take on another property refurbishment?'
0:56:33 > 0:56:36Maybe at a later date, but the next year is going to be fishing.
0:56:36 > 0:56:38I've got a lot of catching up to do!
0:56:38 > 0:56:41And have a good holiday and rest.
0:56:45 > 0:56:47We hope you've enjoyed the programme
0:56:47 > 0:56:50and got some inspiration from our buyers and learned something useful.
0:56:50 > 0:56:52Yes, and we'll be back next time
0:56:52 > 0:56:54with more property auction stories for you.
0:56:54 > 0:56:56- See you then.- Goodbye.- Goodbye.
0:57:16 > 0:57:19Subtitles by Red Bee Media Ltd