Episode 77

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0:00:02 > 0:00:05- Hello. Welcome to the programme. - Property auctions used to be

0:00:05 > 0:00:07the domain of builders and developers, but not any more.

0:00:07 > 0:00:10Loads of people are realising their potential.

0:00:10 > 0:00:12Even in this difficult market,

0:00:12 > 0:00:15people are still buying their homes under the hammer.

0:00:40 > 0:00:42Even for the most experienced buyers,

0:00:42 > 0:00:45auctions can be nerve-wracking and exciting

0:00:45 > 0:00:48but you've got to be careful not to get carried away.

0:00:48 > 0:00:51Did today's buyers keep a cool head and bag a bargain?

0:00:51 > 0:00:53Here's what they bid for.

0:00:54 > 0:00:59I serve up a garden flat in Wimbledon but it is not yet an ace.

0:01:01 > 0:01:03There's definitely room for improvement.

0:01:04 > 0:01:06In this two-bed bungalow

0:01:06 > 0:01:09in Borrowash, Derby, things take a dramatic turn!

0:01:09 > 0:01:13And then... # Dun, dun, da! #

0:01:15 > 0:01:18In Blackhall, Co Durham, it's worth remembering to look up

0:01:18 > 0:01:21in a property as well as around.

0:01:21 > 0:01:24I need to find out what's going on with the ceiling here.

0:01:25 > 0:01:27All these properties went to auction.

0:01:27 > 0:01:30255. And we'll find out who bought them...

0:01:30 > 0:01:34- 32.- and what they paid when they went under the hammer.

0:01:37 > 0:01:38I'm in a part of London

0:01:38 > 0:01:41that's famous for holding an annual sporting event.

0:01:41 > 0:01:45No, it is not football, cricket or rugby.

0:01:45 > 0:01:47If you are lucky enough to bag a ticket,

0:01:47 > 0:01:50you'll more than likely be eating strawberries and quaffing champagne.

0:01:50 > 0:01:54That's right, I'm in Wimbledon, south-west London.

0:01:54 > 0:01:57It's a truly fabulous part of the city.

0:02:00 > 0:02:02And a popular commuter suburb

0:02:02 > 0:02:07with both mainline and underground trains to central London.

0:02:07 > 0:02:11A very short walk from the tube and train station,

0:02:11 > 0:02:14and I'm here to see today's auction lot.

0:02:14 > 0:02:22The last property to sell on THIS road sold for a staggering £905,000.

0:02:22 > 0:02:26I'm here to see a property that went to auction

0:02:26 > 0:02:29with a much smaller price tag.

0:02:29 > 0:02:30Now, this is it.

0:02:30 > 0:02:36It's a ground floor flat with two bedrooms and the guide, £260,000.

0:02:38 > 0:02:43The garden flat is leasehold and has a healthy 125 years remaining.

0:02:43 > 0:02:45I think it's got plenty going for it.

0:02:45 > 0:02:50A welcoming front door and lovely ornate mouldings at the front.

0:02:50 > 0:02:54OK, it could do with a lick of paint buy I'm not put off just yet.

0:02:54 > 0:02:59Through the communal hall to its own front door.

0:02:59 > 0:03:02It's a bit of a squashed, awkward entrance.

0:03:02 > 0:03:06This wall is coming out too far, there is nowhere to go here.

0:03:06 > 0:03:09You have got a wonderful large room to the front of the property -

0:03:09 > 0:03:11that could be a bedroom.

0:03:11 > 0:03:15A nice sized bathroom, it's all tiled. Maybe a little dated.

0:03:15 > 0:03:18Second bedroom here, which is incredibly small.

0:03:18 > 0:03:21That is quite a disappointing size.

0:03:21 > 0:03:24Then, you walk through the flat to an open kitchen.

0:03:24 > 0:03:28There is a window, so it is nice and bright but it is small.

0:03:28 > 0:03:34Right at the back, thank goodness, you have got a lovely open space.

0:03:34 > 0:03:37You can almost forgive what's going on back there.

0:03:37 > 0:03:42This is a fantastic, light and bright space.

0:03:42 > 0:03:45But I am wondering why they haven't opened up this wall -

0:03:45 > 0:03:47it's only a partition.

0:03:47 > 0:03:51You could get this wall down and have a lovely open-plan kitchen.

0:03:51 > 0:03:54There is enough room for your table

0:03:54 > 0:03:57and there are lovely doors leading out to your garden.

0:03:57 > 0:04:01So this flat? Well, there's definitely room for improvement.

0:04:01 > 0:04:05# There ain't nothing wrong with this old house

0:04:05 > 0:04:07# It just needs a little home improvement. #

0:04:07 > 0:04:10I'm confident that with some minor tweaks,

0:04:10 > 0:04:13you could turn this ground floor, garden flat

0:04:13 > 0:04:18that went to auction guided at £260,000, into something special.

0:04:18 > 0:04:23Down these stairs in the hall, there's more space.

0:04:23 > 0:04:25Basements are in high demand in London. If you can't go up,

0:04:25 > 0:04:28everybody is going down.

0:04:28 > 0:04:29Dig out and add pounds.

0:04:29 > 0:04:32I'm not saying this should be a luxury home cinema,

0:04:32 > 0:04:35but you could utilise this space.

0:04:35 > 0:04:39An all-important utility area, - hide the washing machines -

0:04:39 > 0:04:41or how about a walk-in wardrobe?

0:04:41 > 0:04:45I know I've got enough pairs of shoes to fill THIS space.

0:04:45 > 0:04:47But tread carefully,

0:04:47 > 0:04:50footing the bill for basement conversions can be pricey.

0:04:52 > 0:04:54# Toe the line for sure

0:04:55 > 0:04:58# And toe the line for good. #

0:05:00 > 0:05:03If you plan to tank the walls and add plumbing and ventilation,

0:05:03 > 0:05:06you have to know where to toe the line.

0:05:06 > 0:05:10And there's more potential outside.

0:05:10 > 0:05:15You may think this flat is a little tired on the inside, you'd be right.

0:05:15 > 0:05:18It does have an awful lot going for it.

0:05:18 > 0:05:21Number one, it's got its own private garden.

0:05:21 > 0:05:23How lovely! What a selling point!

0:05:23 > 0:05:27Number two, there's off-road parking, another real asset.

0:05:27 > 0:05:33Number three, planning permission to create a single-storey extension.

0:05:33 > 0:05:38This auction lot comes with full planning permission.

0:05:38 > 0:05:41What it means is, you could utilise the side return there.

0:05:41 > 0:05:44You could come right out.

0:05:44 > 0:05:47Adding this extension would transform the flat.

0:05:47 > 0:05:49The kitchen would turn into the bathroom,

0:05:49 > 0:05:52the second bedroom would gain so much more space

0:05:52 > 0:05:55and the kitchen and living room,

0:05:55 > 0:05:58that would be one large open area at the back of the property

0:05:58 > 0:06:03with lovely big doors leading out to the garden. Fantastic!

0:06:03 > 0:06:06The best news is that the extension doesn't just give you more space

0:06:06 > 0:06:09it increases the value significantly.

0:06:09 > 0:06:14It could add as much as £50,000 to the sale price.

0:06:14 > 0:06:16So, I think, well worth doing.

0:06:16 > 0:06:19There is one flaw in the plan,

0:06:19 > 0:06:21while that tiny second bedroom

0:06:21 > 0:06:24would steal much-needed space from the original bathroom,

0:06:24 > 0:06:27the plans allow for the rear living area

0:06:27 > 0:06:30only to be extended into the side.

0:06:30 > 0:06:33The second bedroom's French doors would open out to

0:06:33 > 0:06:34a bit of dead space.

0:06:36 > 0:06:40We invited a local estate agent to have a look at the flat

0:06:40 > 0:06:43that went to auction guided at £260,000.

0:06:43 > 0:06:47How does she think it presents itself as it stands now?

0:06:47 > 0:06:50# First impressions are lasting impressions

0:06:50 > 0:06:54- # I know, I know, I know. # - First impressions of the property

0:06:54 > 0:06:55are a little tired,

0:06:55 > 0:06:59needs a little bit of help, a little bit of care and attention.

0:06:59 > 0:07:02What about the plans that came with a flat?

0:07:02 > 0:07:04The proposed plans are excellent

0:07:04 > 0:07:07either for the developer to do themselves,

0:07:07 > 0:07:12or to offer the property with those plans for future sales.

0:07:12 > 0:07:14Does she agree with me that the extension

0:07:14 > 0:07:17will add significant value to this property?

0:07:17 > 0:07:19With a little paint, I suggest that you could

0:07:19 > 0:07:23probably sell this property for around £375,000.

0:07:23 > 0:07:30Once developed, I would market the property around £425,000.

0:07:30 > 0:07:34I would seriously look at any offers over and above £410,000.

0:07:34 > 0:07:36Without the extension,

0:07:36 > 0:07:41the agent's rental valuation is £1,400 per calendar month.

0:07:41 > 0:07:44She suggests that could increase to £2,000 per month

0:07:44 > 0:07:47if the extension is built.

0:07:47 > 0:07:50A great little flat in a prime location

0:07:50 > 0:07:53with planning permission to extend and add value.

0:07:53 > 0:07:56This is a fantastic one to go for.

0:07:56 > 0:07:59Let's find out who fancied this Wimbledon winner

0:07:59 > 0:08:00when it went under the hammer.

0:08:00 > 0:08:05Lot 15, ground floor flat, Wimbledon SW19.

0:08:05 > 0:08:09Great location, you are just near the underground and shops.

0:08:09 > 0:08:14Let's start at 250 then. 250. 255.

0:08:14 > 0:08:22255, because I can see you. 260? 260. 265. 270. 275...

0:08:22 > 0:08:27Well, lots of interest in the auction room

0:08:27 > 0:08:30we rejoin the bidding at £350,000.

0:08:30 > 0:08:36..350. 351. 352? 352.

0:08:36 > 0:08:41353? 353 in the aisle. 354.

0:08:41 > 0:08:48It's Wimbledon! 355. Not far from the tennis courts. 356.

0:08:48 > 0:08:51356 standing up.

0:08:54 > 0:09:00357 sitting down. 358. 359.

0:09:00 > 0:09:04360? 360. 361.

0:09:04 > 0:09:12362? 361, first time, second time, third and last time.

0:09:12 > 0:09:18Are you all done? Sold! 361 sitting down. Sorry everyone else.

0:09:18 > 0:09:23That final successful bid of £361,000 was made by Frank.

0:09:25 > 0:09:28He owns a property developing and construction company

0:09:28 > 0:09:32with his son James.

0:09:32 > 0:09:37I met up with James at the flat to find out the plans for this place.

0:09:37 > 0:09:41James, congratulations. What a great flat.

0:09:41 > 0:09:43Yes, we're quite happy with it.

0:09:43 > 0:09:45Who spotted it in the auction catalogue?

0:09:45 > 0:09:49- My father.- Did he?- Yes.- Tell me about your dad and the business.

0:09:49 > 0:09:51Basically, it's a family business.

0:09:51 > 0:09:55My father goes round, he buys the properties.

0:09:55 > 0:10:01He finds them and I build them for him. We work as a family team.

0:10:01 > 0:10:03It's not just me and my father, my wife's involved.

0:10:03 > 0:10:05Can you lend your hand to most things,

0:10:05 > 0:10:07or do you have a specific trade?

0:10:07 > 0:10:11I am actually a qualified gas engineer.

0:10:11 > 0:10:15I have that behind me but I do know every man's trade.

0:10:15 > 0:10:17I can tell if any man's trying to pull the wool over my eyes,

0:10:17 > 0:10:19or not doing a good job.

0:10:19 > 0:10:22I make sure that the best job is done at all times.

0:10:22 > 0:10:25James started working with his dad when he was 17.

0:10:25 > 0:10:29He got his gas qualifications and has worked on their building sites.

0:10:29 > 0:10:32Over the years, they have made many different redevelopment projects

0:10:32 > 0:10:35and even built eight new properties.

0:10:35 > 0:10:39Now, they are turning their attention to this place.

0:10:39 > 0:10:42This flat definitely gets better as it goes on.

0:10:42 > 0:10:44You walk in the door, it's a bit disappointing,

0:10:44 > 0:10:49and then it gradually gets a bit better. What did you like about it?

0:10:49 > 0:10:52I think it's because with the plans that has come with it,

0:10:52 > 0:10:54we'll open it right out to the back.

0:10:54 > 0:10:58As you come in, it is going to get better.

0:10:58 > 0:11:02Our new plans, we'll try and make the front half better as well.

0:11:02 > 0:11:04Hold on! So, you've changed the plans?

0:11:04 > 0:11:07Yeah. We weren't too happy with what it came with,

0:11:07 > 0:11:10so we're going to try and put an amendment in with planning.

0:11:10 > 0:11:13It's got a funny little dogleg on it at the moment.

0:11:13 > 0:11:16We're going to go straight across which will give us slightly more room

0:11:16 > 0:11:20and, hopefully, with a bit of luck, we'll get that.

0:11:20 > 0:11:23What'll it cost you to do the build? To do the extension?

0:11:23 > 0:11:25Considering we own our own construction firm,

0:11:25 > 0:11:29I would say around the 30 mark.

0:11:29 > 0:11:32Is anything worrying you? Anything keeping you up at night?

0:11:32 > 0:11:35To be honest, no. We have been doing this for a long time.

0:11:35 > 0:11:39It's not a large project, so I've kind of seen it all before.

0:11:39 > 0:11:41Hopefully, it should all go smoothly.

0:11:41 > 0:11:43Depending on the time it takes

0:11:43 > 0:11:46to get the revised planning application through,

0:11:46 > 0:11:49James hopes to get the flat completed in three to four months.

0:11:49 > 0:11:54His intention is to convert the basement into a utility room.

0:11:54 > 0:11:56If his amended plans are approved,

0:11:56 > 0:12:00he'll extend out into the void space at the side of the kitchen

0:12:00 > 0:12:05and relocate the bathroom to the original kitchen space.

0:12:07 > 0:12:12But I can see that you've decided to call that void area, the kitchen.

0:12:12 > 0:12:15Surely, that's going to be the same size as THIS kitchen,

0:12:15 > 0:12:18which currently is a bit of a negative.

0:12:18 > 0:12:20It's not big enough for the property.

0:12:20 > 0:12:23Yeah, I would agree with you on that.

0:12:23 > 0:12:26What we're going to do is build the shell first.

0:12:26 > 0:12:29We are going to look at re-evaluating it.

0:12:29 > 0:12:31It might end up being a large bathroom, possibly an en suite

0:12:31 > 0:12:34for the second bedroom

0:12:34 > 0:12:35and we might do a kitchen-diner.

0:12:35 > 0:12:38We're going to get the shell up first and see where we go from there.

0:12:38 > 0:12:39James, good luck with this.

0:12:39 > 0:12:41I hope you are successful with the planners.

0:12:41 > 0:12:44Thank very much.

0:12:44 > 0:12:46So, James has encountered

0:12:46 > 0:12:49nearly every problem a property can throw up.

0:12:49 > 0:12:51In my experience, there's always something

0:12:51 > 0:12:53that surprises you when renovating.

0:12:53 > 0:12:57Will he find any? And how will he get on amending those plans?

0:12:57 > 0:12:59You can find out, if he does it all

0:12:59 > 0:13:02in three to four months, later in the show.

0:13:04 > 0:13:07Today, I'm in the East Midlands

0:13:07 > 0:13:11heading for the outskirts of the bustling city of Derby.

0:13:11 > 0:13:13I'm going to a little village

0:13:13 > 0:13:15that sits within chanting distance of the Rams -

0:13:15 > 0:13:18that's Derby County Football Club to you and me.

0:13:18 > 0:13:21Just three miles from Derby city centre,

0:13:21 > 0:13:23in the suburbs is the village of Borrowash -

0:13:23 > 0:13:27a very popular place with commuters and a nice residential area.

0:13:27 > 0:13:30You've got yourself a cul-de-sac here, that's great news

0:13:30 > 0:13:33because the property I'm here to see is this.

0:13:33 > 0:13:35It's a two-bedroom semi-detached bungalow

0:13:35 > 0:13:39at a guide price of £70,000 plus.

0:13:39 > 0:13:42It looks OK, tender loving care needed at the front.

0:13:42 > 0:13:45Let's see what it's like inside.

0:13:45 > 0:13:50So, a nice secluded location and a neat little bungalow.

0:13:50 > 0:13:54A great property for a down-sizer or for an investor.

0:13:54 > 0:13:59Unless there are any nasty surprises, it bodes rather well.

0:14:00 > 0:14:03So, what's the layout? Interesting...

0:14:03 > 0:14:06Through the front door and on the right hand side, the loo.

0:14:06 > 0:14:09It looks like that hasn't been replaced

0:14:09 > 0:14:11since the property was built.

0:14:11 > 0:14:13A bit of time and effort in there would pay dividends.

0:14:13 > 0:14:16Interesting location. I don't know why I didn't expect to find it

0:14:16 > 0:14:19right by the front door, but that's where it is.

0:14:19 > 0:14:23Cupboard there, fairly old looking water heating system.

0:14:23 > 0:14:25You could create some space in the bathroom

0:14:25 > 0:14:28by taking that out and putting a combi boiler in.

0:14:28 > 0:14:30That would give you a bigger size family bathroom.

0:14:30 > 0:14:32A small single bedroom there

0:14:32 > 0:14:36and, on the other side, a reasonable size double.

0:14:36 > 0:14:40And then, a bit of a saving grace here, into the main living area.

0:14:40 > 0:14:42As soon as you walk through the door,

0:14:42 > 0:14:46you're struck by the big patio doors looking out into the garden.

0:14:46 > 0:14:50Really nice to see that. It lets loads of light into this room.

0:14:50 > 0:14:53We like that. Here's a classic from that era -

0:14:53 > 0:14:57sliding door leading to the kitchen. Not a bad size.

0:14:57 > 0:15:01Again, looks like it hasn't been replaced for a very long time.

0:15:01 > 0:15:04Spend a bit of money in there and in the bathroom.

0:15:04 > 0:15:08It is what it is. It's a well-proportioned bungalow.

0:15:08 > 0:15:10But to get the most out of this bungalow,

0:15:10 > 0:15:13you would need to drag it out of the 1960s.

0:15:13 > 0:15:18# And it's all just a little bit of history repeating... #

0:15:23 > 0:15:27These sliding patio doors really are a lovely feature.

0:15:27 > 0:15:32They lead out onto a half decent size garden

0:15:32 > 0:15:35with some good shrubs. A great space.

0:15:35 > 0:15:39Nothing untoward until you come over this way and then...

0:15:39 > 0:15:42# Dun, dun, da! #

0:15:42 > 0:15:43..it's a garage.

0:15:43 > 0:15:49That would be OK but, unfortunately, it is an asbestos garage.

0:15:49 > 0:15:51It would probably be OK

0:15:51 > 0:15:54as long as you don't break any of the asbestos panels.

0:15:54 > 0:15:56If you do decide to get rid of it,

0:15:56 > 0:15:58it has got to be done by a specialist.

0:16:00 > 0:16:04# ..Yes, I've seen it before

0:16:05 > 0:16:08# Just a little bit of history repeating. #

0:16:08 > 0:16:12I did say this was a nice place IF there were no nasty surprises.

0:16:12 > 0:16:19This is IT. But, garage aside, this is a property with possibilities.

0:16:19 > 0:16:23At the rear of the property, let's talk extension options.

0:16:23 > 0:16:25If you look down the row of bungalows,

0:16:25 > 0:16:28you can see somebody has done a classic thing for a bungalow,

0:16:28 > 0:16:30stick on a dormer. That is one option.

0:16:30 > 0:16:32The planning people would be approving of that

0:16:32 > 0:16:34especially if it was on the rear.

0:16:34 > 0:16:38The other option is to do what the neighbour here has done

0:16:38 > 0:16:40which is to stick an extension on the back.

0:16:40 > 0:16:42Either of those options are available.

0:16:42 > 0:16:45That kind of extension you could get away with

0:16:45 > 0:16:47without getting planning permission,

0:16:47 > 0:16:49although you would need building regulations,

0:16:49 > 0:16:52as long as it was within permitted development rules.

0:16:52 > 0:16:55A dormer, you would have to apply for planning permission.

0:16:55 > 0:16:58It would come down to whether or not it was financially worth it,

0:16:58 > 0:17:00or, if you're looking to live here,

0:17:00 > 0:17:03whether it gave you that extra space that you can't live without.

0:17:03 > 0:17:07A little beaut of a bungalow with not too many issues to address.

0:17:07 > 0:17:09Guided at 70,000 plus,

0:17:09 > 0:17:15let's see what the auctioneer who sold it, thinks about it.

0:17:15 > 0:17:18First impressions are, we have got a clean and tidy bungalow.

0:17:18 > 0:17:22It is not large and not up-to-date but many of these places aren't.

0:17:22 > 0:17:27It wouldn't take a lot of money to bring it into the 21st century.

0:17:27 > 0:17:29The kitchen is quite small

0:17:29 > 0:17:32and this would benefit from being larger.

0:17:32 > 0:17:36Other than putting a conservatory on the back of the lounge,

0:17:36 > 0:17:38it cries out for that,

0:17:38 > 0:17:41there isn't a lot you can do other than upgrade what's here.

0:17:41 > 0:17:44Keeping a close watch on your spending will be the key

0:17:44 > 0:17:48to turning this bedraggled bungalow into a little belter.

0:17:48 > 0:17:50Once renovated what could it sell for?

0:17:50 > 0:17:53I think this might fetch quite a good price

0:17:53 > 0:17:58because you don't need a lot of money to renovate it.

0:17:58 > 0:18:01It's already got double glazing.

0:18:01 > 0:18:04The kitchen is old-fashioned, it would be easy to refit this.

0:18:04 > 0:18:09I would say if you spent modest money on it,

0:18:09 > 0:18:13it would probably be worth up to £125,000.

0:18:13 > 0:18:16What about the rental market in this area?

0:18:16 > 0:18:18Would that be a sensible option?

0:18:18 > 0:18:21Renovated, it's got a rental value in the order of

0:18:21 > 0:18:25£450 to £475 per calendar month.

0:18:25 > 0:18:27One of the tricks with auctions

0:18:27 > 0:18:31is to spot those little properties that are good and honest.

0:18:31 > 0:18:35Yes, they need a bit of sorting out but, primarily,

0:18:35 > 0:18:38do that and you've got yourself a great house.

0:18:38 > 0:18:40That's exactly the situation here.

0:18:40 > 0:18:43Let's see who wanted it when it went under the hammer.

0:18:44 > 0:18:48Lot 25, two bedrooms, semi-detached bungalow.

0:18:48 > 0:18:51Who's got 72 to start me?

0:18:51 > 0:18:5572 he has, thank you. £72,000.

0:18:55 > 0:19:0173 is bid. At 73. 74. 75.

0:19:01 > 0:19:0375. 76. 77...

0:19:03 > 0:19:06There was a great deal of interest in this bungalow

0:19:06 > 0:19:09with offers flying in from all over the room.

0:19:09 > 0:19:12We rejoined the bidding at £96,500.

0:19:12 > 0:19:18..96,500. 97. 97,500. 98.

0:19:18 > 0:19:2198. 500.

0:19:21 > 0:19:2699. 500, sir? 500.

0:19:26 > 0:19:2999,500 against you. No?

0:19:29 > 0:19:34At £99,500 once, going twice.

0:19:34 > 0:19:40100. 500. 100,500. It's against you. No?

0:19:42 > 0:19:46At £100,500. Sold at the back.

0:19:46 > 0:19:50# You can call me Mr Fix It whoa now... #

0:19:50 > 0:19:56That successful bid of £100,500 came from Rob.

0:19:56 > 0:19:58# ..They call me Mr Fix It. #

0:19:58 > 0:20:02He is a self-employed property maintenance expert.

0:20:02 > 0:20:06Rob plans to renovate the bungalow with help from his girlfriend,

0:20:06 > 0:20:09Camilla, who is an office administrator.

0:20:09 > 0:20:12I met with them to hear about their plans.

0:20:12 > 0:20:14- Camilla, Rob, good to meet you both.- Thank you.

0:20:14 > 0:20:17Tell me why you wanted to buy the bungalow?

0:20:17 > 0:20:18Basically, to make some money...

0:20:18 > 0:20:21- OK! - ..to refurbish it and make a profit.

0:20:21 > 0:20:23So why this particular place?

0:20:23 > 0:20:25I thought it seems a very innocent property,

0:20:25 > 0:20:28not been messed about with. You know, good area.

0:20:28 > 0:20:31- And I could make a profit on it. - What's your background, Rob?

0:20:31 > 0:20:34I actually work in property maintenance in Newport Pagnell,

0:20:34 > 0:20:35where I live.

0:20:35 > 0:20:37- Newport Pagnell?- Yes.

0:20:37 > 0:20:39Right, as in, quite a long way away.

0:20:39 > 0:20:4275 miles away, Newport Pagnell, yes, that's right.

0:20:42 > 0:20:45I advertise locally as property maintenance

0:20:45 > 0:20:48and I'm employed in people's private houses

0:20:48 > 0:20:51to do anything property maintenance -

0:20:51 > 0:20:53kitchens, bathrooms, decorating.

0:20:53 > 0:20:56So, you've got a bit of experience in the whole sort of property world?

0:20:56 > 0:20:59- Ten years, yes. - So what tempted you up to Derby?

0:20:59 > 0:21:03You couldn't afford things in Milton Keynes.

0:21:03 > 0:21:05Yes, it's mainly the prices in Derbyshire

0:21:05 > 0:21:06that brought me up this way.

0:21:06 > 0:21:09Tell me about your background, Camilla?

0:21:09 > 0:21:13I just do admin and I'm a mother with two kids.

0:21:13 > 0:21:16- And much property experience? - Not really.

0:21:16 > 0:21:19I've got a degree in architecture, so I like design.

0:21:19 > 0:21:21Tell me what you're going to do to this place to sort it out.

0:21:21 > 0:21:24Basically, a complete refurbishment from top to bottom.

0:21:24 > 0:21:28New kitchen, new bathroom. Central heating.

0:21:28 > 0:21:32Or change the boiler, it's got radiators. Decoration, carpets...

0:21:32 > 0:21:36What about outside? You've obviously got this slightly dubious garage.

0:21:36 > 0:21:38I think I'll keep the garage.

0:21:38 > 0:21:41I think it's OK, as long as you don't create dust from it by drilling holes

0:21:41 > 0:21:43in it or anything like that.

0:21:43 > 0:21:44Yes, it does look like asbestos.

0:21:44 > 0:21:47It's better to have a garage than not have one.

0:21:47 > 0:21:49And I'm just going to trim the trees, cut the grass,

0:21:49 > 0:21:50tidy up the flowerbeds.

0:21:50 > 0:21:54And how are you going to do that when you live 75 miles away?

0:21:54 > 0:21:57I'm going to be coming up here during the week, on Monday,

0:21:57 > 0:22:01- staying here until Friday and going back for weekends.- Right.

0:22:01 > 0:22:04# They call me Mr Fix It... #

0:22:04 > 0:22:07Sounds like Rob and Camilla have done their homework.

0:22:07 > 0:22:10Rob has really thought through the logistics

0:22:10 > 0:22:13of how he's going to work here. Top marks from me.

0:22:14 > 0:22:18- What is the timescale? - Four to six weeks.- Oh, wow.

0:22:18 > 0:22:21- So, what's the budget? - £8,000-£10,000.

0:22:21 > 0:22:22And if you do it for that,

0:22:22 > 0:22:25what kind of profit do you think you might be on for for this one?

0:22:25 > 0:22:28I'm hoping to make a £10,000 profit.

0:22:28 > 0:22:30Anything more than that would be a bonus.

0:22:30 > 0:22:32And what is the plan for the future, Camilla?

0:22:32 > 0:22:34Is it to sort of carry on with this whole thing?

0:22:34 > 0:22:37Yeah, I think just to keep buying properties

0:22:37 > 0:22:40and make the profit a little bit bigger every time. That's it.

0:22:40 > 0:22:42- So you're just right at the beginning, really.- Yes.

0:22:42 > 0:22:44- Just a year into it. - Property number two.

0:22:44 > 0:22:46So, with this second property,

0:22:46 > 0:22:50it might look like a fairly easy profit on the face of it.

0:22:50 > 0:22:53But there's a lot of time and money to be spent here.

0:22:53 > 0:22:57They looked at 24 properties before deciding on this one

0:22:57 > 0:23:01and if time is money, you can add that time to the real costs so far.

0:23:01 > 0:23:06Rob paid upfront for a broker fee and a mortgage arrangement fee,

0:23:06 > 0:23:08as he needed to borrow to buy this property.

0:23:08 > 0:23:12Add to that a valuation survey fee.

0:23:12 > 0:23:16So, how much is his outlay so far, before any work begins?

0:23:16 > 0:23:18I think about £800.

0:23:18 > 0:23:21So, had you not got it, then, that would have just been...?

0:23:21 > 0:23:22Absolutely. That's the gamble.

0:23:22 > 0:23:25- The previous auction, you did that for a different property.- Yes.

0:23:25 > 0:23:27And you didn't get it.

0:23:27 > 0:23:32Better to gamble wasting £800, than bidding on a property

0:23:32 > 0:23:36and paying a 10% deposit that I would lose if it was un-mortageable.

0:23:36 > 0:23:39- Well, congratulations. Good luck. - Thank you very much.

0:23:39 > 0:23:42- And I look forward to seeing how you get on.- Thank you very much.

0:23:43 > 0:23:48So, architectural experience and practical property experience,

0:23:48 > 0:23:49a very good combination.

0:23:49 > 0:23:53How will Camilla and Rob get on sorting this place out?

0:23:53 > 0:23:55You can find out later in the show.

0:23:57 > 0:23:59Coming up, in Blackhall, County Durham,

0:23:59 > 0:24:04this lean-to might make you worry about the inside of the house.

0:24:04 > 0:24:06It's actually really pleasant!

0:24:06 > 0:24:09We return to Derby, where Rob's refurbishment

0:24:09 > 0:24:13of this bungalow went down well with Camilla.

0:24:13 > 0:24:16I'm quite impressed, actually, with what he's done.

0:24:18 > 0:24:21And back in Wimbledon, James faced a dilemma.

0:24:21 > 0:24:23Do we go for a standard specification, or do we try

0:24:23 > 0:24:26and push the market a bit, go up on the spec?

0:24:29 > 0:24:33Wimbledon in south-west London is synonymous

0:24:33 > 0:24:34with the tennis championships.

0:24:34 > 0:24:36# Anyone for tennis?

0:24:36 > 0:24:39# Wouldn't that be nice? #

0:24:40 > 0:24:44But it's not just Andy Murray fans who love the area.

0:24:44 > 0:24:48With the station serving up good rail links to central London,

0:24:48 > 0:24:52local properties are in high demand.

0:24:52 > 0:24:54The two bedroom, garden flat in this property

0:24:54 > 0:24:59was bought for 361,000 by James and his father, Frank,

0:24:59 > 0:25:02who own a construction and property developing company.

0:25:04 > 0:25:07The flat had planning permission to add an extension at the rear,

0:25:07 > 0:25:10but James wanted to tweak that.

0:25:10 > 0:25:12Hold on a minute! So, you've changed the plans?

0:25:12 > 0:25:15Yeah, we're going to try to put in an amendment in with the planning.

0:25:15 > 0:25:16Hopefully we'll get it.

0:25:16 > 0:25:19It's just got a funny little dogleg on it at the moment -

0:25:19 > 0:25:21we're going to try to go straight across with it,

0:25:21 > 0:25:24which is going to give us slightly more room.

0:25:24 > 0:25:25But would the planning department

0:25:25 > 0:25:27say James was barking up the wrong tree?

0:25:29 > 0:25:32Well, eight-and-a-half months later, back in Wimbledon,

0:25:32 > 0:25:36it's game, set and match to James.

0:25:36 > 0:25:39Because, after a delay, the plans were approved.

0:25:49 > 0:25:51This super extension looks really great.

0:25:54 > 0:25:58I love this decking and those bi-fold doors.

0:26:02 > 0:26:04And look at the effect inside!

0:26:04 > 0:26:06In the extra space James has gained,

0:26:06 > 0:26:10this very high-tech kitchen has been installed.

0:26:16 > 0:26:20James is understandably delighted with it.

0:26:20 > 0:26:24Right, what we've done here is we've done this side return,

0:26:24 > 0:26:30the infill back over here. The extension, as you can see,

0:26:30 > 0:26:31the beam that comes all the way along here

0:26:31 > 0:26:34is the line of the original building.

0:26:34 > 0:26:37It stopped around about here, the existing building.

0:26:37 > 0:26:39So from there on is a rear extension.

0:26:39 > 0:26:42And then that's your site extension coming along there.

0:26:42 > 0:26:44So it's added considerable square footage to the property.

0:26:44 > 0:26:48We've got a very nice big open living area.

0:26:48 > 0:26:50A nice, luxurious apartment.

0:26:50 > 0:26:53Plenty of open space outside as well, once this is all opened up.

0:26:53 > 0:26:56Definitely have some good parties here, I would say!

0:26:57 > 0:27:00With the new kitchen located in the extension,

0:27:00 > 0:27:03the original kitchen is now this five-star bathroom.

0:27:11 > 0:27:17I'm really impressed with the finish in this flat. Top spec, for sure.

0:27:17 > 0:27:19The second bedroom benefited, too,

0:27:19 > 0:27:23expanding into the original bathroom and gaining two windows.

0:27:27 > 0:27:32The master bedroom at the front has kept the same dimensions.

0:27:32 > 0:27:34James had hoped to get this Wimbledon project

0:27:34 > 0:27:37completed in three sets.

0:27:37 > 0:27:41But it ran to a five set thriller, as he explains.

0:27:41 > 0:27:43We're now quite a few months down the line,

0:27:43 > 0:27:47but we lost coming up for four months due to party wall complications.

0:27:47 > 0:27:51At one point, we just completely had to stop here.

0:27:51 > 0:27:54James faced more delays and expense as the foundations

0:27:54 > 0:27:58had to be increased due to the clay subsoil.

0:27:58 > 0:28:00With the costs rising,

0:28:00 > 0:28:05he called a meeting to discuss the next move for the interior design.

0:28:05 > 0:28:07We sort of had to make a decision,

0:28:07 > 0:28:09do we go for a standard specification,

0:28:09 > 0:28:12or do we try and push the market a bit, go up on the spec?

0:28:12 > 0:28:15And that's what we decided to do.

0:28:15 > 0:28:16Well, a good call, I reckon.

0:28:23 > 0:28:26On the original planning, there was a pair of patio doors,

0:28:26 > 0:28:29as opposed to a set of sliding, folding doors.

0:28:29 > 0:28:32And I just thought if we could open that up as much as possible

0:28:32 > 0:28:33so, in the summertime,

0:28:33 > 0:28:36you can almost feel like you're sitting in the garden.

0:28:36 > 0:28:39So after the delayed start, once work began,

0:28:39 > 0:28:42how often has James been on site?

0:28:42 > 0:28:44Every day! Hands on, as well.

0:28:44 > 0:28:46I did the heating system myself.

0:28:46 > 0:28:49That's my trade, a heating engineer, along with my son.

0:28:49 > 0:28:52I run the team of guys myself, so, every day.

0:28:52 > 0:28:54The basement has been boarded

0:28:54 > 0:28:58and will be the utility room with valuable extra storage space.

0:28:58 > 0:29:01How much has the conversion cost?

0:29:01 > 0:29:04We were going to spend 30, and I'd say we're closer to 60 now.

0:29:04 > 0:29:07So quite a big increase, but hopefully worth it.

0:29:07 > 0:29:11With the 361,000 James's father paid at auction,

0:29:11 > 0:29:15that makes their total investment 421,000.

0:29:17 > 0:29:20We invited two local property experts to view the flat.

0:29:20 > 0:29:23What do they think of the finish James has achieved?

0:29:23 > 0:29:26The kitchen and the living area are superb.

0:29:26 > 0:29:29Nice, open-plan living, which is very common nowadays

0:29:29 > 0:29:31and very sort of desirable.

0:29:31 > 0:29:35The living space is very modern.

0:29:35 > 0:29:39Good natural light. Bi-fold windows, very popular these days.

0:29:39 > 0:29:41The bedrooms are both a very good size.

0:29:41 > 0:29:45The bathroom is really, really nice, modern, very clean finish.

0:29:45 > 0:29:48You can tell that there is good quality that has been

0:29:48 > 0:29:51used in the bathroom as well.

0:29:51 > 0:29:53How much could the flat sell for?

0:29:53 > 0:29:57More than the £421,000 invested here?

0:29:57 > 0:30:00I would market this property at £630,000

0:30:00 > 0:30:03and look to achieve between 600 and 630,000.

0:30:03 > 0:30:06If we were asked to market this property,

0:30:06 > 0:30:09I would be hopeful of achieving £575,000.

0:30:09 > 0:30:15That range of between 575 and 630,000 could mean a gross profit

0:30:15 > 0:30:21of between 154 and 209,000, before tax and expenses.

0:30:21 > 0:30:27OK. Yeah, we've actually turned down a figure over the six already.

0:30:27 > 0:30:29But, yeah, very happy.

0:30:29 > 0:30:31I mean the sort of 630-ish, or just below that,

0:30:31 > 0:30:34we'd be quite happy. If not, we'll go for rentals.

0:30:34 > 0:30:36OK, let's talk more figures.

0:30:36 > 0:30:39How much rental income could the flat earn?

0:30:39 > 0:30:40For rental per calendar month,

0:30:40 > 0:30:43I'd put this between £1,700 and £1,800 per month.

0:30:43 > 0:30:45If we were to let this property,

0:30:45 > 0:30:48I'd expect to achieve £1,600 per calendar month.

0:30:48 > 0:30:51Perhaps £1,700 per calendar month.

0:30:51 > 0:30:56So a potential yield of 4% to 5% on the 421,000

0:30:56 > 0:30:58they've invested here.

0:30:58 > 0:30:59I thought it might be a bit higher.

0:30:59 > 0:31:01I've had a couple of quotes around the 2,000 mark.

0:31:01 > 0:31:04But 1,700 to 1,800, we'd be quite happy with that, really.

0:31:04 > 0:31:06It's not bad at all.

0:31:06 > 0:31:08Clearly, James's hard work will pay off

0:31:08 > 0:31:11for the family development company.

0:31:11 > 0:31:14But is his dad Frank happy with the end result?

0:31:14 > 0:31:17He comes here all the time, has a little check up on what I'm up to.

0:31:17 > 0:31:21No, he's over the moon. Very happy. He thinks we've done a good job!

0:31:21 > 0:31:23And the latest news?

0:31:23 > 0:31:26The two bedroom flat is currently under offer

0:31:26 > 0:31:30at £591,500 from a cash buyer.

0:31:33 > 0:31:36Today, I'm near the beautiful north-east coast of England,

0:31:36 > 0:31:38in the village of Blackhall,

0:31:38 > 0:31:42which developed around the colliery there before it closed in 1981.

0:31:42 > 0:31:45It still has the hallmarks of a life built around the mines

0:31:45 > 0:31:48and a really strong community spirit.

0:31:48 > 0:31:50It's now a commuter village just off the A19

0:31:50 > 0:31:52within easy reach of Durham.

0:31:52 > 0:31:55# It's just a hop, skip and a jump

0:31:55 > 0:31:57# To where my baby's at! #

0:31:57 > 0:32:01Well, just a hop, skip and a jump from the centre of Blackhall,

0:32:01 > 0:32:07is a two bedroom, end-terraced house with one of those guide prices

0:32:07 > 0:32:10that just stops you in your tracks.

0:32:10 > 0:32:1519,950 quid.

0:32:15 > 0:32:17In 2012?!

0:32:17 > 0:32:21# Isn't it cheap?

0:32:21 > 0:32:24# Isn't it cheap? #

0:32:24 > 0:32:28So, for that amount of money, a good roof and four walls,

0:32:28 > 0:32:32and I think you'd be quids in. But, no, it's actually really pleasant.

0:32:32 > 0:32:35You've got a little porch area there, keep the cold out.

0:32:35 > 0:32:38And then through into a really decent-size living room.

0:32:38 > 0:32:43A bay window there, you've got an open fire. Nice high ceilings.

0:32:43 > 0:32:45Not seeing anything I don't like so far.

0:32:45 > 0:32:49Through to this slightly green middle part of the house.

0:32:49 > 0:32:52You've got a downstairs bathroom there. Upstairs to your bedrooms.

0:32:52 > 0:32:54And then through on into the kitchen.

0:32:54 > 0:32:57And again, nothing here I'm seeing I don't like.

0:32:57 > 0:33:00It's a little bit in need of tender loving care,

0:33:00 > 0:33:02but a half-decent size.

0:33:02 > 0:33:05Door out to a little sort of lean-to area there

0:33:05 > 0:33:06and on into the back garden.

0:33:06 > 0:33:10For that amount of money, this is great!

0:33:10 > 0:33:13# That is excellent!

0:33:13 > 0:33:16# Oh, yes, that's excellent! #

0:33:16 > 0:33:20For that guide price of 19,950,

0:33:20 > 0:33:23this really does look like an excellent buy.

0:33:23 > 0:33:26I hope I'm not going to be disappointed.

0:33:26 > 0:33:30The bathroom suite's in good condition. It just needs re-tiling.

0:33:30 > 0:33:34I wonder if the first floor's going to be excellent, too?

0:33:34 > 0:33:38So, upstairs and, sadly, no bathroom or loo here,

0:33:38 > 0:33:41it is just the one downstairs. So, would you move it? I don't know.

0:33:41 > 0:33:45It's certainly an interesting layout. Quite a small rear bedroom.

0:33:45 > 0:33:48And then a really big front bedroom.

0:33:48 > 0:33:51For a family, this might actually work quite well.

0:33:51 > 0:33:53But maybe you could think about playing around

0:33:53 > 0:33:54with some of the walls.

0:33:54 > 0:33:56Feels like it might be a stud partition.

0:33:56 > 0:33:58So something you could potentially do there.

0:33:58 > 0:34:00But before you do that,

0:34:00 > 0:34:03you need to find out what's going on with the ceiling here.

0:34:03 > 0:34:06Hopefully, it's just a bit of loose plaster.

0:34:06 > 0:34:10Worst case scenario, something going wrong with the roof.

0:34:10 > 0:34:12That could be expensive.

0:34:12 > 0:34:14Touch wood, it's nothing serious.

0:34:14 > 0:34:17Maybe not this wood, it might all come crashing down.

0:34:17 > 0:34:19But judging by a quick look from outside,

0:34:19 > 0:34:21the roof doesn't look too bad.

0:34:21 > 0:34:24Although I'd always advise getting it checked out.

0:34:24 > 0:34:26The front of the house has a very pleasant outlook

0:34:26 > 0:34:28across to this church.

0:34:30 > 0:34:33And the windows and rendering seem in good nick, too.

0:34:33 > 0:34:35Well, at the rear of the property,

0:34:35 > 0:34:39a bit of a mishmash of this sort of lean-to, conservatory thing,

0:34:39 > 0:34:43some outbuildings, some outdoor storage as well.

0:34:43 > 0:34:46You might consider doing what the next-door neighbours

0:34:46 > 0:34:49have done and put a really nice kind of extension on here.

0:34:49 > 0:34:51But you've got the space to do it,

0:34:51 > 0:34:53and the fact you've got these buildings here means

0:34:53 > 0:34:55that you wouldn't have to apply for planning permission.

0:34:55 > 0:34:58Building regulations, yes, but not planning permission.

0:34:58 > 0:35:01It is always wise to talk to your local planning department

0:35:01 > 0:35:03before you do anything.

0:35:03 > 0:35:06But with the neighbours' extension as a precedent

0:35:06 > 0:35:08and the buildings that are already here,

0:35:08 > 0:35:10''it's looking pretty promising.

0:35:10 > 0:35:15As does this whole house for that guide price of just under £20,000.

0:35:15 > 0:35:19We asked along a local property expert to tell us

0:35:19 > 0:35:21what he thought of this auction lot.

0:35:21 > 0:35:24What does he make of the upstairs layout?

0:35:24 > 0:35:27Would he recommend altering it?

0:35:27 > 0:35:31I suppose you could separate the two rooms to create three bedrooms.

0:35:31 > 0:35:36The bathroom is downstairs. A lot of people like a bathroom upstairs now,

0:35:36 > 0:35:38so you could move the bathroom up there.

0:35:38 > 0:35:42Assuming no major configuration but a new central heating system

0:35:42 > 0:35:45and a general refurbishment were carried out,

0:35:45 > 0:35:50what could this end of terrace fetch on the open market?

0:35:50 > 0:35:53I would expect it to achieve between £70,000 and £75,000.

0:35:53 > 0:35:57What rental return could it earn?

0:35:57 > 0:35:59In the current rental market,

0:35:59 > 0:36:03I would expect to achieve about £450 per calendar month.

0:36:03 > 0:36:06If you're looking for a property bargain,

0:36:06 > 0:36:08it's clear where you have got to come.

0:36:08 > 0:36:10Blackhall.

0:36:10 > 0:36:12Let's see if this place went for

0:36:12 > 0:36:15anything like that £19,950 plus guide price

0:36:15 > 0:36:17when it went under the hammer.

0:36:17 > 0:36:21We're going to move now down to Blackhall. This is lot number two.

0:36:21 > 0:36:24Two bed, end-terraced house.

0:36:24 > 0:36:27It's got the off street parking, solid fuel heating,

0:36:27 > 0:36:29enclosed garden and a yard.

0:36:29 > 0:36:34We've got this in with a price guide of £19,950 plus.

0:36:34 > 0:36:36Can I ask for £20,000 to start anywhere?

0:36:36 > 0:36:39£20,000 on the left-hand side. 22? 22 bid.

0:36:39 > 0:36:4524? 24 bid. 26? 26 far right.

0:36:45 > 0:36:4728? 28 bid. 30.

0:36:47 > 0:36:50No? I will take one if it'll help.

0:36:50 > 0:36:56Lady standing, £29,000. 30. 31? 31 bid.

0:36:57 > 0:37:0232? 32 bid. 33? I'll take 500.

0:37:02 > 0:37:0632,500 bid. 33 new bidder. 33,500? No?

0:37:06 > 0:37:1233,500 bid. 34? 34 bid. 34,500?

0:37:12 > 0:37:1334,500 bid on the telephone.

0:37:13 > 0:37:1635? 35 bid.

0:37:16 > 0:37:1835 in the room. Are you both out on the phone?

0:37:18 > 0:37:2135,500 from either? No?

0:37:21 > 0:37:24I am selling once at 35, and I am going quick.

0:37:24 > 0:37:27I'm selling for the second time at £35,000.

0:37:27 > 0:37:30Sold to the gentleman on the right-hand side.

0:37:30 > 0:37:32That final bid of £35,000 was made by Kami,

0:37:32 > 0:37:35who was at the auction with his daughter.

0:37:35 > 0:37:38High-fives all round.

0:37:38 > 0:37:44Kami is a property developer from Newcastle with a large portfolio.

0:37:44 > 0:37:45He has been on the programme before

0:37:45 > 0:37:48when he bought another property in Blackhall.

0:37:51 > 0:37:54I met up with him back at his latest purchase

0:37:54 > 0:37:57to hear about his plans for it.

0:37:57 > 0:38:02- Kami, great to see you...again! - Time flies.- It does indeed.

0:38:02 > 0:38:06- How did you get on with the last project? How did it go?- Good.

0:38:06 > 0:38:09It's done and dusted. The tenants have moved in and are happy.

0:38:09 > 0:38:12- So, you're obviously a fan of the area.- I love the area.

0:38:12 > 0:38:15Blackhall's the place to be, nice people. That's the main thing.

0:38:15 > 0:38:17Tell me why you wanted to buy this house?

0:38:17 > 0:38:19This is the posh end of Blackhall.

0:38:19 > 0:38:21Where you went last time was the colliery's.

0:38:21 > 0:38:25They were built for the men down the mines. This is the top end,

0:38:25 > 0:38:27this is the posh end.

0:38:27 > 0:38:30- Remind me how many properties do you have?- I've lost count.

0:38:30 > 0:38:34- More than 10, less than 100? - Something like that.

0:38:34 > 0:38:39Kami's been a property developer for over 10 years

0:38:39 > 0:38:40and frequently buys

0:38:40 > 0:38:43both commercial and residential properties at auction.

0:38:43 > 0:38:48He has a team of tradesmen he uses to carry out quick refurbishments.

0:38:48 > 0:38:52So, this one in the posh bit, apart from that, why this house?

0:38:52 > 0:38:57To be honest, I had never seen it. This is the first time I've seen it.

0:38:57 > 0:38:59I saw it advertised as a two-bedroom and freehold.

0:38:59 > 0:39:02Had you looked into it before the auction?

0:39:02 > 0:39:05- I got the papers, the magazine. - Had you read the legal pack?

0:39:05 > 0:39:08- I never read the legal pack.- Oh! - Isn't that bad?- Yes.

0:39:08 > 0:39:10But I buy them all in the same area,

0:39:10 > 0:39:13all legal packs are the same if you buy in the same area.

0:39:13 > 0:39:17- Not necessarily. - Is it not?- No.- Ah, well.

0:39:17 > 0:39:22Kami is pretty laid-back about buying property

0:39:22 > 0:39:26and doesn't seem to worry about taking a chance.

0:39:26 > 0:39:30# Breaking the rules

0:39:30 > 0:39:37# Reckless and taking chances just the same. #

0:39:37 > 0:39:40Essentially, this is a good basic house

0:39:40 > 0:39:42but you could change the layout.

0:39:42 > 0:39:46So, will Kami be getting his sledgehammer out?

0:39:46 > 0:39:48What are you going to do to sort it out?

0:39:48 > 0:39:52A total refurb. Windows, doors, kitchen, floor and bathroom.

0:39:52 > 0:39:55What about layout? Is that big wall behind me coming down?

0:39:55 > 0:39:58No, I never take any walls down. Keep them all in.

0:39:58 > 0:40:01Once you start taking walls out, you're talking major work.

0:40:01 > 0:40:03It's a strange situation with a very small

0:40:03 > 0:40:05bedroom and a big bedroom.

0:40:05 > 0:40:07Have you thought about equalising the sizes?

0:40:07 > 0:40:10No, I'm going go leave them the way they are.

0:40:10 > 0:40:12So, what sort of budget have you got for this one?

0:40:12 > 0:40:15I think 12 to 13,000 max.

0:40:15 > 0:40:18- Eight week turnaround.- Eight weeks?

0:40:18 > 0:40:19- So, a bit longer for this one?- Yeah.

0:40:19 > 0:40:22I think some of the back walls need taking out,

0:40:22 > 0:40:26- which might take a couple of weeks. - Right!

0:40:26 > 0:40:29Ah! So, some walls will be coming down after all.

0:40:29 > 0:40:34Kami's taking a cautious route here by not over-spending.

0:40:34 > 0:40:36After all - these ARE tough times.

0:40:36 > 0:40:39But that's not holding HIM back.

0:40:39 > 0:40:42Nobody's got any money, have they? And prices are dropping.

0:40:42 > 0:40:45If you can borrow money, it's time to buy really.

0:40:45 > 0:40:49- And rent's pretty good.- Rents are still the same. £400, 440 a month.

0:40:49 > 0:40:51And this one will get a little bit more rent?

0:40:51 > 0:40:53No, I'll charge the same.

0:40:53 > 0:40:56- Even though it's the posh bit? - Even though it's the posh bit!

0:40:56 > 0:41:00Kami has found a niche at the more affordable end of the housing market

0:41:00 > 0:41:03and it's a strategy that's served him well.

0:41:04 > 0:41:07So, how was the auction? Were you happy with what you paid for it?

0:41:07 > 0:41:09Yeah. I thought it was a really good price.

0:41:09 > 0:41:11I thought it might have gone for about 50.

0:41:11 > 0:41:13I was quite prepared to go to 50.

0:41:13 > 0:41:15And what do you put the low price down to?

0:41:15 > 0:41:17Cos it's a lot of house for the money, isn't it?

0:41:17 > 0:41:20I think it's just luck at the end of the day. Sometimes you can go to

0:41:20 > 0:41:23the auction and get nothing. The last one I bought was a proper bargain.

0:41:23 > 0:41:26As opposed to this, which is just a medium bargain?

0:41:26 > 0:41:28Last one was 27 grand for a two-bedroom house with a garden.

0:41:28 > 0:41:30- Right!- That's a bargain, isn't it?

0:41:30 > 0:41:32- A proper bargain. - A proper bargain, that!

0:41:32 > 0:41:35# I call that a bargain

0:41:35 > 0:41:39# The best I ever had. #

0:41:39 > 0:41:43Kami might believe that the £35,000 he paid for this house

0:41:43 > 0:41:46isn't such a bargain but, considering its condition,

0:41:46 > 0:41:48I reckon that's exactly how it looks.

0:41:50 > 0:41:55So, another property in Kami's property portfolio cap

0:41:55 > 0:41:57and, once again, breaking all the rules -

0:41:57 > 0:42:00not reading the legal pack, not visiting beforehand.

0:42:00 > 0:42:04You can get away with it but if it goes wrong, it goes wrong big time.

0:42:04 > 0:42:06How will he get on sorting this place out?

0:42:06 > 0:42:08You can find out later in the show.

0:42:11 > 0:42:15Once you've bought your property, the hard work really starts,

0:42:15 > 0:42:19and you have to be prepared for some surprises along the way.

0:42:19 > 0:42:22So, have our buyers unearthed any hidden treasures,

0:42:22 > 0:42:25or uncovered any pitfalls? Let's find out.

0:42:28 > 0:42:31We return now to the East Midlands village of Borrowash,

0:42:31 > 0:42:35a suburb of the city of Derby, where Rob had bought this two-bed,

0:42:35 > 0:42:39semi-detached bungalow for £100,500.

0:42:41 > 0:42:45He lives 75 miles away in Newport Pagnell near Milton Keynes,

0:42:45 > 0:42:48where he works, self-employed, doing property maintenance.

0:42:49 > 0:42:53But he was attracted to the property prices in Derby.

0:42:53 > 0:42:56His girlfriend Camilla is a trained architect and set designer,

0:42:56 > 0:42:59currently doing admin work.

0:42:59 > 0:43:02But her skills were going to come in handy for Rob

0:43:02 > 0:43:05as he planned to refurbish the bungalow.

0:43:05 > 0:43:07He hoped to make £10,000 profit,

0:43:07 > 0:43:11which he'd reinvest into another property.

0:43:11 > 0:43:13So, tell me what you're going to do to this place to sort it out.

0:43:13 > 0:43:16Basically, a complete refurbishment from top to bottom.

0:43:16 > 0:43:19New kitchen, new bathroom, central heating,

0:43:19 > 0:43:24change the boiler, it's got radiators, decoration, carpets.

0:43:24 > 0:43:26And how are you going to do that when you live 75 miles away?

0:43:26 > 0:43:30Cos I'm going to be up here during the weeks on a Monday,

0:43:30 > 0:43:33staying here till Friday, and going back for weekends.

0:43:33 > 0:43:36# I just stay

0:43:36 > 0:43:39# A long way from home. #

0:43:41 > 0:43:46Rob set a budget of £8-10,000 and was going to take a six-week break

0:43:46 > 0:43:49from his normal business to concentrate on the bungalow.

0:43:51 > 0:43:53Well, seven weeks later, we're back.

0:43:55 > 0:43:58The old paving slabs have been replaced by new shingle,

0:43:58 > 0:44:00which gives a much improved kerb appeal.

0:44:03 > 0:44:08I'm not sure if I like the bathroom being the first room that greets you

0:44:08 > 0:44:12in the hall, but I do approve of Rob's new suite and choice of tiles.

0:44:17 > 0:44:18At the front of the bungalow,

0:44:18 > 0:44:21Rob's gone for a classic, neutral colour scheme

0:44:21 > 0:44:22in the front bedroom.

0:44:25 > 0:44:29Replacing these dark doors has made such a difference throughout.

0:44:30 > 0:44:34The neutral tone continues in the master bedroom.

0:44:35 > 0:44:37It's no coincidence

0:44:37 > 0:44:40that so many new-builds go down that route as well.

0:44:43 > 0:44:46And it's the look Rob's chosen for the lounge as well.

0:44:48 > 0:44:52So in here, I stripped off all the wallpaper that was woodchip,

0:44:52 > 0:44:57painted magnolia walls, white ceiling, white doors, white skirting

0:44:57 > 0:44:59and had a neutral carpet fitted.

0:44:59 > 0:45:01The lounge and the whole house,

0:45:01 > 0:45:04I'm really pleased with how it's turned out. I really like it.

0:45:04 > 0:45:09The bungalow has been rewired and Rob's invested in quality sockets,

0:45:09 > 0:45:12which add to the overall polished effect.

0:45:12 > 0:45:15OK, so the kitchen is not massive but, again,

0:45:15 > 0:45:17he's maximised what was here.

0:45:19 > 0:45:23So, in the kitchen, all new cupboards, new tiles,

0:45:23 > 0:45:26new hob, new oven, new flooring,

0:45:26 > 0:45:31and this cupboard was a problem before because the worktop

0:45:31 > 0:45:36couldn't come across in front of it, and so I made the doors to suit.

0:45:36 > 0:45:39I'm very pleased with how the kitchen's turned out.

0:45:39 > 0:45:43Apart from the odd day off and a week's work back in Newport Pagnell,

0:45:43 > 0:45:47Rob and his friend, Ash, have worked five days a week on the bungalow.

0:45:47 > 0:45:51So he did only take six weeks as he'd planned.

0:45:51 > 0:45:53He had to employ a qualified electrician

0:45:53 > 0:45:55and gas fitter for the boiler.

0:45:55 > 0:45:58How much design input has Camilla been able to give?

0:45:58 > 0:46:01Well, I thought I might be able to have a bit of input with

0:46:01 > 0:46:03the design but, to be honest,

0:46:03 > 0:46:06I think you had that all sussed anyway.

0:46:08 > 0:46:10It seems Rob's got a good eye for design.

0:46:10 > 0:46:13He wants to dress the bungalow as a new-build show house.

0:46:15 > 0:46:17I thought when you buy a new house,

0:46:17 > 0:46:21the house is dressed as if you could move straight in, so I thought,

0:46:21 > 0:46:25without going too far, I wanted to give that look. So I bought

0:46:25 > 0:46:30some second-hand furniture and a few cushions and things to dress

0:46:30 > 0:46:33the house cos I thought that'd help make it sell.

0:46:33 > 0:46:36It has such a nice feeling to it. And I like all the colours.

0:46:36 > 0:46:38You've done purples and beiges and soft blues.

0:46:38 > 0:46:42I'm quite impressed actually with what he's done.

0:46:42 > 0:46:46Outside, Rob's tidied up the garden but has decided to leave

0:46:46 > 0:46:49the asbestos garage as it wasn't damaged

0:46:49 > 0:46:51and will be useful storage space.

0:46:53 > 0:46:55How much has the work cost?

0:46:55 > 0:46:59Did Rob manage to stick to his £8-10,000 budget?

0:46:59 > 0:47:03I've come in at 10,000. So on budget.

0:47:03 > 0:47:08That takes Rob's total investment here to £110,500.

0:47:10 > 0:47:14Time to hear what the auctioneer who sold it and viewed it originally

0:47:14 > 0:47:18and another local property expert think of the finished bungalow.

0:47:20 > 0:47:23The change is quite dramatic from when I last saw it.

0:47:23 > 0:47:26It's tidy, clean and very appealing.

0:47:26 > 0:47:30The look of it is pretty well what I expect. The finish looks good.

0:47:30 > 0:47:34It's obviously been done to appeal to a certain market,

0:47:34 > 0:47:38which is fine, and I think it's been pretty successfully done.

0:47:38 > 0:47:41This is a nice location. It's a quiet cul-de-sac.

0:47:41 > 0:47:44It would appeal to all markets but probably,

0:47:44 > 0:47:46because it's a bungalow, mainly older people.

0:47:46 > 0:47:51So what rental potential can these two local property experts

0:47:51 > 0:47:54predict for the bungalow? How much income could it generate?

0:47:54 > 0:47:56I think they would be able to rent it

0:47:56 > 0:47:59in the region of £550 per calendar month.

0:47:59 > 0:48:04The rental value would be about £525, £550 a calendar month.

0:48:04 > 0:48:10So a rental yield of over 5.5% if Rob decided to let

0:48:10 > 0:48:12but his plan has always been to sell.

0:48:12 > 0:48:14So, how much is the bungalow now worth?

0:48:14 > 0:48:18More than the £110,500 he's invested here?

0:48:20 > 0:48:25An appropriate asking price would be around £139,950.

0:48:25 > 0:48:29I would estimate selling it in the region of £140,000.

0:48:29 > 0:48:32The top valuation only differs by 50 quid,

0:48:32 > 0:48:38so Rob could make a profit of around £29,500 before taxes and expenses.

0:48:40 > 0:48:41Spot-on.

0:48:41 > 0:48:45That's what I thought, that's what I hoped for, so very pleased.

0:48:45 > 0:48:49Considering he was hoping to come out with a £10,000 gross profit

0:48:49 > 0:48:52to carry forward to his next project, it sounds like

0:48:52 > 0:48:56there could be another £19,500 to put into the equation.

0:48:56 > 0:49:00- This was a good scale project for you, wasn't it?- Yes.

0:49:00 > 0:49:03Not too big cos you've got other work to do and you can make a little

0:49:03 > 0:49:06bit more money every time, and it will just grow and grow.

0:49:06 > 0:49:10Like Camilla, I think Rob's being very sensible to start small

0:49:10 > 0:49:11and think big.

0:49:13 > 0:49:19I'd like to become a developer and I'd like to do three or four a year.

0:49:26 > 0:49:29Earlier in the programme we visited the north-east of England.

0:49:29 > 0:49:32With its beautiful beach, it's no surprise that the former

0:49:32 > 0:49:35mining village of Blackhall is popular with commuters,

0:49:35 > 0:49:38as it also offers good road links to the nearby A1.

0:49:40 > 0:49:45It was at this end-of-terrace that we met or rather re-met Kami,

0:49:45 > 0:49:47a property developer who has featured on

0:49:47 > 0:49:50Homes Under The Hammer previously.

0:49:50 > 0:49:54This time around, he'd paid £35,000 for this house

0:49:54 > 0:49:57to add to his growing buy-to-let portfolio.

0:49:57 > 0:50:02Kami likes to take a high-risk strategy approach to property.

0:50:02 > 0:50:05- Did you read the legal pack?- I never read the legal pack. Isn't that bad?

0:50:05 > 0:50:07Yes!

0:50:07 > 0:50:08But I buy them all the time in the area

0:50:08 > 0:50:11and all the legal facts are the same if you buy in the same area.

0:50:11 > 0:50:14- Not necessarily.- Isn't it?- No!

0:50:14 > 0:50:15Oh, well.

0:50:15 > 0:50:18Boy! Fortunately Kami does have expertise

0:50:18 > 0:50:22and a team of reliable builders to do all the work.

0:50:22 > 0:50:24His plan was to replace the kitchen and bathroom

0:50:24 > 0:50:28and decorate throughout, but not much else.

0:50:28 > 0:50:30What about layout?

0:50:30 > 0:50:32You've got a big wall behind me. Is that coming out?

0:50:32 > 0:50:34No, I never take any walls out.

0:50:34 > 0:50:38Once you start taking walls out, you're talking major work.

0:50:38 > 0:50:41Kami had set a budget of £12-£13,000

0:50:41 > 0:50:43and eight weeks to do the work.

0:50:45 > 0:50:47But it's now 17 weeks later,

0:50:47 > 0:50:51and we've returned to see the completed property.

0:50:53 > 0:50:56The house has a new front door and porch.

0:50:56 > 0:50:59The garden's had a tidy-up but is still work in progress.

0:51:03 > 0:51:07At the back, Kami's kitchen is a real eye-opener.

0:51:08 > 0:51:12He's chosen mid-range units and appliances, which look good.

0:51:14 > 0:51:18And losing units from one wall does make the room feel bigger.

0:51:19 > 0:51:25The laminate flooring through to the living room opens the house up too.

0:51:25 > 0:51:28And that dated fireplace went to the skip.

0:51:30 > 0:51:34The new bathroom suite includes a shower and it works well.

0:51:36 > 0:51:40Beside the kitchen was a timber extension known locally

0:51:40 > 0:51:44as an off-shot, but Kami decided there was only one type

0:51:44 > 0:51:47of timber he wanted outside the back door.

0:51:47 > 0:51:50The decking, we got in because we got rid of the off-shot

0:51:50 > 0:51:52and it was wasting time not doing anything.

0:51:52 > 0:51:54We knocked it down and we put the decking in.

0:51:54 > 0:51:58It was quick, it was easy. Took about three or four hours to put it in.

0:51:58 > 0:52:02In the summertime, it's really nice when the sun's shining,

0:52:02 > 0:52:05- you can get your deckchairs out and just chill.- Yes.

0:52:05 > 0:52:09Pop a few flowerpots out there, get the barbie on the go

0:52:09 > 0:52:10and it could be very nice.

0:52:12 > 0:52:15The work's taken around 12 weeks but the start was delayed

0:52:15 > 0:52:18as Kami needed to get the gas supply relocated.

0:52:18 > 0:52:21This is the gas meter which was originally in the kitchen.

0:52:21 > 0:52:23It took 12 weeks for the guys to come and change the gas meter

0:52:23 > 0:52:26from the kitchen to outside. Apart from that - no delays.

0:52:26 > 0:52:28That was the only thing that kept us back.

0:52:28 > 0:52:31As well as the new back door,

0:52:31 > 0:52:33the rear windows have also been replaced.

0:52:36 > 0:52:39And upstairs, the neutral colour scheme continues.

0:52:41 > 0:52:46Kami has installed new central heating and had a new combi boiler

0:52:46 > 0:52:47put in the big bedroom.

0:52:47 > 0:52:51However, I don't think that's an ideal position as, even if

0:52:51 > 0:52:54you follow all the regulations and have a carbon monoxide alarm,

0:52:54 > 0:52:57there's the noise issue.

0:52:57 > 0:52:58Also, apart from anything else,

0:52:58 > 0:53:01it's not the most attractive bedroom feature.

0:53:01 > 0:53:04I think he'd have been far better off putting it in the kitchen

0:53:04 > 0:53:06and after all, there is room now.

0:53:06 > 0:53:09But what about the problem with that hole in the ceiling

0:53:09 > 0:53:11in the front bedroom?

0:53:11 > 0:53:14There was a hole in the ceiling upstairs in the main bedroom.

0:53:14 > 0:53:17The guy I bought the house off did fix the hole but never skimmed

0:53:17 > 0:53:21the ceiling, so we skimmed the full room so we got rid of the hole.

0:53:21 > 0:53:23The house has been rewired throughout,

0:53:23 > 0:53:27and all the walls have been skimmed. But in the smaller rear bedroom,

0:53:27 > 0:53:32it's still going to be a challenge to squeeze in much more than a bed.

0:53:32 > 0:53:36Kami always uses local tradesmen on his property refurbishments,

0:53:36 > 0:53:40so what skills did his team bring to this project?

0:53:40 > 0:53:45I've got a plumber, electrician, a joiner, plasterer,

0:53:45 > 0:53:48and a painter as well. They're called the BBC - Bad Boy Crew.

0:53:48 > 0:53:52They're a good set of lads and they've been with us for a while.

0:53:52 > 0:53:54How much has the refurbishment cost?

0:53:54 > 0:53:57Did Kami stick to his initial budget of 12 to 13,000?

0:53:59 > 0:54:01The budget I had was 11 grand for the house.

0:54:01 > 0:54:05I think I went about 300, 400 quid more. That's it - tops.

0:54:05 > 0:54:07Well that Bad Boy Crew have done him proud.

0:54:07 > 0:54:12He's come in under his initial budget, and that £11,400 he's spent

0:54:12 > 0:54:17takes his total investment here to £46,400.

0:54:19 > 0:54:22We invited two local estate agents to come

0:54:22 > 0:54:26and have a look at the house and the work that Kami's team have done.

0:54:26 > 0:54:28What are their impressions of it?

0:54:28 > 0:54:31First impressions of the property are quite good.

0:54:31 > 0:54:33It's been done to a moderate standard.

0:54:33 > 0:54:34Kitchen's good, bathroom's good

0:54:34 > 0:54:36and I'd expect it to rent out straight away.

0:54:36 > 0:54:38I particularly like the kitchen area.

0:54:38 > 0:54:41It has been refurbished to a good standard. It's a good size.

0:54:41 > 0:54:43Because there isn't a separate dining area,

0:54:43 > 0:54:46it's good that the owner has put a breakfast bar in there.

0:54:46 > 0:54:49There's a ceiling price with these properties,

0:54:49 > 0:54:52you can't go over that. If they spend too much money,

0:54:52 > 0:54:54it would've been a white elephant.

0:54:54 > 0:54:57I feel there are still some works to be done externally.

0:54:57 > 0:55:00The front garden area would be nice if it was laid to lawn

0:55:00 > 0:55:02and just finished off.

0:55:02 > 0:55:07Kami has £46,400 invested in the property so how much do

0:55:07 > 0:55:10the estate agents think the house could sell for

0:55:10 > 0:55:11if it was put up for sale?

0:55:11 > 0:55:15I would advise to put it on the market for £65,000.

0:55:15 > 0:55:17If I was to place the property on the market currently,

0:55:17 > 0:55:20I would look to market it at offers around £70,000.

0:55:20 > 0:55:25That valuation range of 65 to 70,000 would generate a gross profit

0:55:25 > 0:55:31of between £18,600 and £23,600 before taxes and expenses.

0:55:31 > 0:55:34If you asked me before, that's exactly what I would've said.

0:55:34 > 0:55:3765 to 70. That's fair.

0:55:37 > 0:55:41But Kami's going to add this house to his growing buy-to-let portfolio.

0:55:41 > 0:55:43He's already got a tenant lined up,

0:55:43 > 0:55:45so what sort of rent could he be charging?

0:55:45 > 0:55:48If the owner's looking to put the property on the rental market,

0:55:48 > 0:55:52I'd hope for it to achieve somewhere around £450 per calendar month.

0:55:52 > 0:55:57I would suggest to put the property on for rental at around £450

0:55:57 > 0:55:59per calendar month.

0:55:59 > 0:56:04Those rentals would yield over 11.5% on Kami's investment.

0:56:04 > 0:56:08So, is his tenant paying over £450 a month?

0:56:08 > 0:56:12I've done it for 440, 110 quid a week. My tenant is nice, young lady.

0:56:12 > 0:56:16She's moving in later today. She is very, very happy with the property.

0:56:16 > 0:56:18And so is Kami.

0:56:18 > 0:56:21It looks as though his high-risk strategy of not looking

0:56:21 > 0:56:24at the property before purchasing it has paid off again,

0:56:24 > 0:56:27but, please, don't try this at home.

0:56:27 > 0:56:30Clearly he's going to continue in his own sweet way,

0:56:30 > 0:56:34and see a silver lining in today's tougher property market.

0:56:34 > 0:56:37Since filming, he's bought another three properties.

0:56:37 > 0:56:40While the properties are cheap, I can't help buying them.

0:56:40 > 0:56:43Even though I don't want to buy a property, the estate agent

0:56:43 > 0:56:46rings me up and says, "I've got this for sale," and I just can't say no.

0:56:46 > 0:56:47The Bad Boy Crew love it as well

0:56:47 > 0:56:50cos they've always got work to do, so it's all good.

0:56:52 > 0:56:55We hope you've enjoyed watching Homes Under The Hammer.

0:56:55 > 0:56:59We will have more stories from the auction rooms for you next time.

0:56:59 > 0:57:02- Look forward to seeing you then. - Goodbye.- Goodbye.

0:57:20 > 0:57:23Subtitles by Red Bee Media Ltd