0:00:02 > 0:00:04Despite changing market conditions,
0:00:04 > 0:00:07people still want a slice of the property action.
0:00:07 > 0:00:11If you're prepared to take the plunge, auctions can be a great place to start.
0:00:11 > 0:00:17It can be fast and frantic, but it can also be brilliant buying your home under the hammer.
0:00:41 > 0:00:45Some properties are popular at auction, others go unsold.
0:00:45 > 0:00:49So the auction room can be a difficult place to conquer.
0:00:49 > 0:00:53So let's take a look at today's lots that won the hearts of our buyers.
0:00:54 > 0:00:58'In rural Cornwall, I spy huge potential in a shed!'
0:00:58 > 0:01:03Could you possibly get planning permission for a separate dwelling?
0:01:04 > 0:01:08'While in Edmonton, north London, I take a walk on the wild side.'
0:01:08 > 0:01:12I'm already laughing. Look at pretty Polly on the door.
0:01:14 > 0:01:17'And in the village of Ludworth, County Durham,
0:01:17 > 0:01:20'there's a house which leaves me lost for words.'
0:01:20 > 0:01:22I'm speechless, really.
0:01:26 > 0:01:29'All these properties have been sold at auction.
0:01:29 > 0:01:34'We'll find out who bought them and what they paid when they went under the hammer.'
0:01:42 > 0:01:47Today, I'm in the little hamlet of St Newlyn East,
0:01:47 > 0:01:51just outside Newquay in Cornwall.
0:01:51 > 0:01:53Absolutely glorious place to live.
0:01:53 > 0:01:57That's convenient cos there's a property up for auction.
0:01:59 > 0:02:03'Yes, if you fancy a rural retreat and a little piece of heaven,
0:02:03 > 0:02:05'you could do a lot worse than here.
0:02:05 > 0:02:09'There are country pubs, open fields, amazing scenery
0:02:09 > 0:02:12'and a convenient bus route, all on your doorstep.
0:02:12 > 0:02:15'It might be a little too remote for some people,
0:02:15 > 0:02:21'but others, myself included, would relish the quiet village lifestyle.'
0:02:24 > 0:02:29So, what does a guide price of £160,000 to £180,000 get you round here?
0:02:29 > 0:02:32Well, I'll come to the house in a minute.
0:02:32 > 0:02:36First of all, it got you a very large amount of...
0:02:36 > 0:02:39well, sort of parking area, this outbuilding.
0:02:39 > 0:02:41- CHUCKLING:- But hey...!
0:02:41 > 0:02:45By far the most impressive thing so far is THAT view!
0:02:45 > 0:02:49Absolutely spectacular! Do we really care what the house is like?
0:02:49 > 0:02:52As it happens, it looks pretty good, too!
0:02:52 > 0:02:55# It's a perfect view... #
0:02:56 > 0:02:58'With far distant views from the back,
0:02:58 > 0:03:01'this feels a wonderfully peaceful location.
0:03:01 > 0:03:06'This semi-detached country cottage has a large front garden
0:03:06 > 0:03:08'and an even bigger one at the rear.
0:03:08 > 0:03:11'Time to check out the INside.'
0:03:13 > 0:03:15Oh, OK!
0:03:15 > 0:03:18Well, unless that's the second toilet,
0:03:18 > 0:03:21I don't like the location, as you come in through back door.
0:03:21 > 0:03:24Hopefully, there will be another one upstairs,
0:03:24 > 0:03:26but first impressions, mmm, jury's out.
0:03:26 > 0:03:30Not a bad size kitchen, and you have got lots of windows
0:03:30 > 0:03:34looking out onto the view - that's what I want to see in this place!
0:03:34 > 0:03:37Massive windows making the most of the location.
0:03:37 > 0:03:40Through into the lounge and not bad.
0:03:40 > 0:03:44Dual aspect, a nice big open fireplace with this stone,
0:03:44 > 0:03:46which I think works quite well.
0:03:46 > 0:03:50And in terms of general condition, not too bad!
0:03:50 > 0:03:54Oh. An alternative door for you. Let's take a look upstairs.
0:03:54 > 0:03:58'So, the main front door opens on to the lounge and stairs.'
0:04:00 > 0:04:05One thing that strikes you about this house, lots of natural light. I really love that.
0:04:05 > 0:04:08Up here, three bedrooms and...
0:04:08 > 0:04:11Well, there isn't a bathroom but at least there is a loo.
0:04:11 > 0:04:15I wonder if there's some reconfiguration you could do here.
0:04:15 > 0:04:20The three bedrooms are a bit small. One there, one there and one there!
0:04:20 > 0:04:24I think, take some of these partition walls down,
0:04:24 > 0:04:27create a bigger bathroom, maybe even lose one of the bedrooms.
0:04:27 > 0:04:31Then you end up with a really nicely proportioned upstairs.
0:04:31 > 0:04:33'Whatever the new owner decides,
0:04:33 > 0:04:36'I'd be keen decorate these rooms sympathetically
0:04:36 > 0:04:39'and preserve that cosy cottage style.
0:04:42 > 0:04:45'As for those views,
0:04:45 > 0:04:48'they certainly make up for the cramped feeling in the bedrooms.
0:04:48 > 0:04:53'Downstairs in this property that was guided at £160,000 to £180,000,
0:04:53 > 0:04:57'I think I'd keep the fireplace, as it adds to the character.
0:04:57 > 0:04:59'Maybe install a wood-burning stove.
0:04:59 > 0:05:03'We always advise getting a safety check on the chimney by an expert.
0:05:03 > 0:05:06'And if the bathroom was relocated upstairs,
0:05:06 > 0:05:09'there could be great potential to redesign the kitchen
0:05:09 > 0:05:12'to incorporate just a loo down here.
0:05:12 > 0:05:16'So, apart from the lovely views, what else is on offer outside?'
0:05:19 > 0:05:23So at the side of the property, you've got these outbuildings.
0:05:23 > 0:05:25They're currently used as storage.
0:05:25 > 0:05:27You've also got quite a lot of space.
0:05:27 > 0:05:30So I'm wondering what the options are.
0:05:30 > 0:05:32You could keep it as it is
0:05:32 > 0:05:37or could you possibly try and get planning permission for a separate dwelling here?
0:05:37 > 0:05:41I'm sure that the Local Authority would be very sensitive about that.
0:05:41 > 0:05:48A way round it might be to do something which has been inspired by what I've seen here.
0:05:48 > 0:05:50This is called The Studio.
0:05:50 > 0:05:55In the past, this might have been used for a pottery or craft studio.
0:05:55 > 0:05:58Council planners are very, very supportive
0:05:58 > 0:06:01of live-work units in rural communities.
0:06:01 > 0:06:05If you apply to convert this as somewhere where somebody could live
0:06:05 > 0:06:08and maybe have some kind of a craft business,
0:06:08 > 0:06:10I think you might be on to a bit of a winner.
0:06:10 > 0:06:13With that could come a healthy profit.
0:06:13 > 0:06:16'To discover more about potential for this place,
0:06:16 > 0:06:19'we invited the auctioneer who sold it to come and explain
0:06:19 > 0:06:23'what he thinks are the merits of this auction lot.'
0:06:23 > 0:06:25This property is fantastic.
0:06:25 > 0:06:28It's got the raw ingredients to be a wonderful family home.
0:06:28 > 0:06:31It's very basic. It does require modernisation from top to bottom,
0:06:31 > 0:06:35which would include the classic kitchen-bathroom decoration
0:06:35 > 0:06:37and possible extension to the side.
0:06:37 > 0:06:42'But this auction lot has much more than the property going for it.'
0:06:42 > 0:06:46A really exciting factor is, of course, the quarter acre of gardens and ground,
0:06:46 > 0:06:50but more so is the detached annexe workshop/store,
0:06:50 > 0:06:54which offers a vast scope of possibilities for the owner.
0:06:54 > 0:06:58Is it developable into something that could be either lived in
0:06:58 > 0:07:00or used for holiday uses?
0:07:00 > 0:07:02'Assuming it was left as it is,
0:07:02 > 0:07:05'how much could it be worth after a full refurbishment?'
0:07:05 > 0:07:10Once refurbished, the property should be worth somewhere in the region of £225,000.
0:07:10 > 0:07:13'What if it was rented out?'
0:07:14 > 0:07:18You could expect to achieve in the region of £650 to £700 per calendar month.
0:07:20 > 0:07:23Well, it's clearly in need of a bit of modernisation,
0:07:23 > 0:07:25but what a fantastic property!
0:07:25 > 0:07:27It just has that feel about it.
0:07:27 > 0:07:29Then you come outside or look through the windows
0:07:29 > 0:07:32and you've got that in front of you and Newquay...
0:07:32 > 0:07:34- SIGHS - ..within a stone's throw.
0:07:34 > 0:07:38Let's see who spotted it when it went under the hammer.
0:07:38 > 0:07:41We move on to lot 188.
0:07:41 > 0:07:45A stunning spot, beautiful cottage.
0:07:45 > 0:07:49You've got the compound to the right-hand side, a single-storey building.
0:07:49 > 0:07:54What could that be? It's a great games room or something for the children.
0:07:54 > 0:07:57Who's going to kick us off for 180? Straight in. 180 do I see anywhere?
0:07:57 > 0:07:59OK, 170, I'll ask.
0:08:00 > 0:08:03160? 160, we're away. At 160.
0:08:03 > 0:08:07Is that a wave from the blue jumper? 162.
0:08:07 > 0:08:10At 162,000. 164 just in front.
0:08:10 > 0:08:14164 is in the room. 165 I'll take. 165.
0:08:14 > 0:08:18At 165. At 165,000.
0:08:18 > 0:08:21At 165,000 for the first time.
0:08:22 > 0:08:26At 165,000...for the second time.
0:08:27 > 0:08:30To the lady in the blue, for the third and final time.
0:08:30 > 0:08:32At 165,00.
0:08:32 > 0:08:36It's selling at £165,000...
0:08:36 > 0:08:39BANGS GAVEL Congratulations. Well done!
0:08:39 > 0:08:46'That final successful bid of £165,000 was made by Mary in the blue jumper.
0:08:46 > 0:08:48'She was at the auction with her friend, Blanca,
0:08:48 > 0:08:52'who was holding Mary's new baby, Solomon, during the bidding.
0:08:52 > 0:08:56'Mary and her husband, Steve, both teach locally.'
0:08:58 > 0:09:01# Teacher, teacher
0:09:01 > 0:09:04# There's so much I'm longing to know... #
0:09:04 > 0:09:07'I met up with them back at the property to find out their plans.'
0:09:07 > 0:09:12- Steve, Mary, great to meet you both. - You too.- Congratulations!
0:09:12 > 0:09:14Lovely house. Why did you want to buy it?
0:09:14 > 0:09:18We were firstly attracted to the space, the outbuildings,
0:09:18 > 0:09:22this area - it's obviously great being so close to the coast.
0:09:22 > 0:09:25Having the countryside around us is just amazing!
0:09:25 > 0:09:28- Right. Where do you live at the moment?- We live in Newquay.
0:09:28 > 0:09:32- We've got a flat there.- Right. - We've been there for four years.
0:09:32 > 0:09:34We're looking to get somewhere bigger.
0:09:34 > 0:09:38It's a nice maisonette, beautiful view, right by the river.
0:09:38 > 0:09:40But we've got a little one now.
0:09:40 > 0:09:45We want him to have space outside to be able to run around when he's a bit bigger.
0:09:45 > 0:09:48- What an amazing place to grow up! - It's fantastic!
0:09:48 > 0:09:51Just a bit out of Newquay, where our community is,
0:09:51 > 0:09:56but not too far - about ten minutes' drive, so it's ideal for us.
0:09:56 > 0:09:59- And the views are just outstanding. - Yeah. They are amazing.
0:10:01 > 0:10:05'The family plan to continue living in their flat for about four months,
0:10:05 > 0:10:08'until they've done the initial work on their new house
0:10:08 > 0:10:10'to make it OK to move in.'
0:10:11 > 0:10:13So, what are the plans for it?
0:10:13 > 0:10:17Well, downstairs, we're just going to put a wood-burner and redecorate.
0:10:17 > 0:10:20- Ooh, nice! - We've designed a new kitchen.
0:10:20 > 0:10:25And then the current bathroom, we're turning into a utility room
0:10:25 > 0:10:27with just a single toilet.
0:10:27 > 0:10:31We're hoping, at some point, to extend out. That'll give us four bedrooms.
0:10:31 > 0:10:34But for the minute, it's got three very small bedrooms.
0:10:34 > 0:10:38We're going to get rid of the toilet and make one of the small bedrooms
0:10:38 > 0:10:42into a really nice family bathroom, then have two decent sized rooms.
0:10:42 > 0:10:46- The extension can come later. - Budgets, stuff like that?
0:10:46 > 0:10:50We were really pleased to get it at the price we did. That's given us a bit more.
0:10:50 > 0:10:53We were looking to go up to 180,
0:10:53 > 0:10:58so that's given us 18,000, 20,000 to play with, as long as we're careful.
0:10:58 > 0:11:02# ..Make me, make me, make me the teacher's pet. #
0:11:03 > 0:11:07'Steve teaches maths, so I'm sure he'll keep a tight rein on the budget.
0:11:07 > 0:11:11'They're going to have a combi boiler and radiators installed,
0:11:11 > 0:11:13'plus a possible rewire.
0:11:13 > 0:11:15'What about the outbuildings?'
0:11:15 > 0:11:19We've got lots of ideas, but nothing concrete at the minute.
0:11:19 > 0:11:21It's just a great storage space.
0:11:21 > 0:11:24Maybe play a bit of table tennis in the meantime!
0:11:24 > 0:11:28What about outside? The garden's a bit overgrown at the moment.
0:11:28 > 0:11:31Yeah, we'll try and neaten the garden up.
0:11:31 > 0:11:34We'll probably dig most of it up and lay new grass eventually,
0:11:34 > 0:11:37but not sure that'll be within four months.
0:11:37 > 0:11:41- Anything you're worried about? - Just that we'll go over budget.
0:11:41 > 0:11:45- Yeah, it's new to us.- Yeah. - We've never had a project like this.
0:11:45 > 0:11:47So it's all an unknown, I suppose.
0:11:47 > 0:11:51At the minute, plans are coming together but, yeah...
0:11:51 > 0:11:55That's the concern. You never really know how it's going to turn out.
0:11:55 > 0:11:57- But hopefully it'll turn out well! - Hopefully!
0:11:57 > 0:12:00Listen, congratulations. Good luck with it.
0:12:00 > 0:12:04- And really look forward to seeing how you get on.- Yeah. Thank you.
0:12:04 > 0:12:08Well, a great result for Mary and Steve.
0:12:08 > 0:12:13What a fantastic family home this will make for them and little baby Solomon.
0:12:13 > 0:12:16Work to be done, but I think they'll enjoy doing it.
0:12:16 > 0:12:20You can find out how they get on later in the show.
0:12:22 > 0:12:25I've travelled to north London, to a place called Edmonton.
0:12:25 > 0:12:28It's roughly 12 miles from the centre of the city
0:12:28 > 0:12:32and the property I'm here to see is minutes away from this -
0:12:32 > 0:12:35the North Middlesex University Hospital.
0:12:35 > 0:12:37Two years ago, it was given a major revamp
0:12:37 > 0:12:40costing over £120 million.
0:12:40 > 0:12:43It's one of the major employers in the area.
0:12:43 > 0:12:45And what do employees need?
0:12:45 > 0:12:47That's right! Accommodation!
0:12:47 > 0:12:53This auction lot could be a perfect buy-to-let opportunity - and it's just there!
0:12:53 > 0:12:59# Doctor, my eyes! Tell me what is wrong
0:12:59 > 0:13:02# Was I unwise
0:13:02 > 0:13:07# To leave them open for so long...? #
0:13:07 > 0:13:09'Here's, hopefully, just what the doctor ordered -
0:13:09 > 0:13:14'a three-bedroom semi-detached house with a guide price of 175,000.
0:13:14 > 0:13:18'You might think this is a fairly standard semi, but you'd be wrong.
0:13:18 > 0:13:22'Inside, it's a small gothic mansion-ette.'
0:13:22 > 0:13:26- CHUCKLING - I'm already laughing. Look at pretty Polly on the door!
0:13:26 > 0:13:30I love that! This house has character.
0:13:30 > 0:13:33The first thing that strikes you when you walk in the door
0:13:33 > 0:13:35is the fact that this wall has been taken out.
0:13:35 > 0:13:38I love it because lots of light's coming through
0:13:38 > 0:13:42and you really feel the benefit of this wonderful open space.
0:13:42 > 0:13:45Again, through here, second reception room.
0:13:45 > 0:13:49Bits of fitted furniture like this, that don't really work.
0:13:49 > 0:13:52But if you can see beyond all this, it's a fabulous space!
0:13:52 > 0:13:57Again, look, this is the kitchen - enormous! Perfect for a family!
0:13:57 > 0:14:01With a bit of thought and effort and love put into this place,
0:14:01 > 0:14:03I think it could be a great house.
0:14:03 > 0:14:06'Taking a closer look at the decor in the lounge,
0:14:06 > 0:14:11'it's clear to see the previous owner had some wild tastes.'
0:14:11 > 0:14:18# In the jungle, the mighty jungle the lion sleeps tonight... #
0:14:18 > 0:14:23'I love the way this house flows. The open-plan layout really works.
0:14:23 > 0:14:27'But you'll need rose-tinted glasses when you look around upstairs!
0:14:27 > 0:14:31'It's, well, not quite a ROARING success.
0:14:31 > 0:14:35'It looks as if somebody has started the work but left halfway through.
0:14:35 > 0:14:38'Oh, dear! But once again, the space is good.
0:14:38 > 0:14:42'So you need to try and look past the brick dust and dodgy wiring,
0:14:42 > 0:14:46'and see how great these three bedrooms could be.
0:14:46 > 0:14:51'The master bedroom has been replastered and just needs a final push to finish it off.
0:14:51 > 0:14:54'There's a small, box-like single bedroom to the rear
0:14:54 > 0:14:57'and a much better sized single next door to it,
0:14:57 > 0:15:00'to which the previous owner has decided to add a wash basin.
0:15:00 > 0:15:02'As for the bathroom,
0:15:02 > 0:15:05'well, you can see where the budget's gone here!
0:15:06 > 0:15:09'Outside, there may be a really decent garden,
0:15:09 > 0:15:13'but it's hard to tell with this huge shed - it's got to go.
0:15:13 > 0:15:16'The garage at the bottom could be a keeper,
0:15:16 > 0:15:19'especially if you're the sort of person who fills a garage
0:15:19 > 0:15:21'with everything except a car.
0:15:21 > 0:15:24'The garage is accessed from a rear lane.
0:15:24 > 0:15:28'If that garage is stuffed full, there are possibilities out front.'
0:15:28 > 0:15:31There's plenty of scope to create off-street parking,
0:15:31 > 0:15:37and let's be honest, this is the place you want to park your car, if at all possible.
0:15:37 > 0:15:42You only need to look at the neighbours to see it's a popular choice.
0:15:42 > 0:15:46Don't be fooled into thinking your application will get the green light
0:15:46 > 0:15:48because your neighbours have set a precedent.
0:15:48 > 0:15:52It will almost definitely strengthen your case with the council,
0:15:52 > 0:15:54but don't bank on it.
0:15:54 > 0:15:59# Ain't it kind of funny Boils down to money... #
0:15:59 > 0:16:02'Dropping the kerb may not add pound signs to the end value,
0:16:02 > 0:16:06'but will ultimately make it much more saleable.
0:16:06 > 0:16:08'What does a local estate agent make of this property
0:16:08 > 0:16:12'that was guided at 175,000?'
0:16:13 > 0:16:17My first impression is the house needs a bit of work inside.
0:16:17 > 0:16:19The space is good and the location's very good.
0:16:19 > 0:16:23The reason this is such a good area is it's an up-and-coming area,
0:16:23 > 0:16:25a lot of first-time buyers
0:16:25 > 0:16:28and high rental figures achieved for these properties.
0:16:28 > 0:16:30'So, let's talk figures.'
0:16:31 > 0:16:36Once the house is renovated, it would go on the market for £280,000.
0:16:37 > 0:16:41'What does he think it could achieve on the rental market?'
0:16:42 > 0:16:47This would go on the rental market for £1,350 per calendar month.
0:16:47 > 0:16:50You can't argue with those figures!
0:16:50 > 0:16:55This property's proximity to the hospital makes it an ideal buy-to-let.
0:16:55 > 0:16:58Let's find out who wanted this one when it went under the hammer.
0:16:59 > 0:17:04Lot 30 is a three-bed semi-detached house. 200?
0:17:04 > 0:17:06If not, you tell me.
0:17:07 > 0:17:10150 in the front. 150. 155?
0:17:11 > 0:17:13160. 161?
0:17:13 > 0:17:17162. 163? 164...
0:17:17 > 0:17:20'There was a lot of interest in this property.
0:17:20 > 0:17:24'We rejoin the auction at 218,000.'
0:17:24 > 0:17:27..218. Had a feeling that you were there.
0:17:27 > 0:17:29218. 219?
0:17:29 > 0:17:31220, madam? Yeah?
0:17:31 > 0:17:34221? 222?
0:17:34 > 0:17:37221 with you first time.
0:17:37 > 0:17:41Sec... 222. 223?
0:17:41 > 0:17:43Yeah? 224?
0:17:43 > 0:17:47225? 226?
0:17:47 > 0:17:50227? 228?
0:17:50 > 0:17:52229?
0:17:52 > 0:17:53230?
0:17:53 > 0:17:56231? 232?
0:17:56 > 0:17:58233?
0:17:58 > 0:17:59234?
0:18:00 > 0:18:04235? 236?
0:18:04 > 0:18:05235 with you.
0:18:05 > 0:18:09236? If not, 235 first time.
0:18:09 > 0:18:11Second time...
0:18:11 > 0:18:142... Again? 236.
0:18:14 > 0:18:16237?
0:18:16 > 0:18:20236 with you. First time. Second time.
0:18:20 > 0:18:22Third and last time...
0:18:22 > 0:18:24Sold, 236.
0:18:24 > 0:18:28'That successful bid of 236,000,
0:18:28 > 0:18:32'a whopping 61,000 over the guide price, came from Sharuz.
0:18:32 > 0:18:35'Originally from Iran, he runs a carpet-fitting business,
0:18:35 > 0:18:38'so he's ideal to work some magic on this property.'
0:18:38 > 0:18:42# On a magic carpet ride
0:18:42 > 0:18:45# We can touch the sky And like a bird we'll fly
0:18:45 > 0:18:49# There's no end to what we'll do Me and you... #
0:18:49 > 0:18:53'I went back to the house to meet him and find out his plans.'
0:18:55 > 0:18:57- Sharuz, congratulations. - Thank you very much.
0:18:57 > 0:19:03- What was it like for you on auction day? Did you expect to get this? - Yes, I went to auction to buy it.
0:19:03 > 0:19:08- But it was a bit high price I paid. - You paid 236,000.
0:19:08 > 0:19:15Plus the legal cost of the other solicitors, which is almost £6,000, which I was not expecting.
0:19:15 > 0:19:19- So did you still want the property? - I did want it, but I was in doubt.
0:19:19 > 0:19:22- Did you think about getting out of it?- I did.
0:19:22 > 0:19:27- It's a legally binding contract. The hammer goes down and the property's yours.- Yeah.
0:19:27 > 0:19:29When you found out that you couldn't back-pedal,
0:19:29 > 0:19:32you had to keep it, how did you feel then?
0:19:32 > 0:19:35You know, I just tried to forget what was happening.
0:19:35 > 0:19:38Just look forward for future.
0:19:38 > 0:19:41'With extra costs and getting carried away at the auction,
0:19:41 > 0:19:44'Sharuz hasn't got off to the best of starts,
0:19:44 > 0:19:49'but he's taking a long-term view of this development, which he plans to let in the short term.
0:19:49 > 0:19:52'But as he says, he's looking to the future.'
0:19:52 > 0:19:57When I know I am going to get the money I spent plus auction fees, I'm going to sell it.
0:19:57 > 0:20:02So you're going to sit on it for a while until you feel you can sell it at a good profit?
0:20:02 > 0:20:05Probably not profit. Just I get my money back.
0:20:05 > 0:20:08- You really don't feel you're going to make a profit?- I don't think so.
0:20:08 > 0:20:12'Now Sharuz wants out of this property as soon as he can do so
0:20:12 > 0:20:14'without losing any money.
0:20:14 > 0:20:17'However, depending on how much he spends on renovation,
0:20:17 > 0:20:21'he could still make a rental yield of around 7%, so all is not lost.
0:20:21 > 0:20:25'But he bid a huge 61,000 over the guide price,
0:20:25 > 0:20:29'so must have really wanted it at some point.'
0:20:29 > 0:20:33Why did this house appeal to you in the first place?
0:20:33 > 0:20:36Because of garage, you know. I love the garage.
0:20:36 > 0:20:39I was looking for the house with a garage.
0:20:39 > 0:20:44This one was a big one. I could park my van, my car.
0:20:44 > 0:20:48That's why I went to auction because of this house and I bought it.
0:20:48 > 0:20:51You bought it because you like the garage to park YOUR van in.
0:20:51 > 0:20:55- But you're not going to live here! - But we are not living far away.
0:20:55 > 0:20:59And I can walk from the other house to here.
0:20:59 > 0:21:04- So you bought the house so you can keep the garage?- Yeah. I'm gonna keep the garage.
0:21:04 > 0:21:08'Sharuz has already contacted the council regarding dropping the kerb.
0:21:08 > 0:21:12'He hopes his new tenants will be happy with front off-street parking
0:21:12 > 0:21:15'and that he will retain the use of the garage.'
0:21:15 > 0:21:18Is property something you've just decided to get into?
0:21:18 > 0:21:23Yes, because I was thinking we could make some money out of the properties
0:21:23 > 0:21:27and also keep them for retirement.
0:21:27 > 0:21:29That's what we decided to do.
0:21:29 > 0:21:34So tell me what you're going to do to really make this place look fabulous?
0:21:34 > 0:21:39A new kitchen, new boiler and new wiring.
0:21:39 > 0:21:43I think these two major things, when it's done,
0:21:43 > 0:21:46just leave us for painting and decorating.
0:21:46 > 0:21:49We're going to paint it inside and outside.
0:21:49 > 0:21:52I think, when it's finished, I hope it will be nice.
0:21:52 > 0:21:58- What sort of budget are you looking at, Sharuz?- I think we will have to spend about £30,000.- Yeah.
0:21:58 > 0:22:02Absolutely. £30,000, and how long is it going to take you?
0:22:02 > 0:22:04It's going to take two or three months.
0:22:04 > 0:22:08Is there anything you're worried about, apart from the fact that you paid too much
0:22:08 > 0:22:11and you've got to fork out six grand for seller's fees?
0:22:11 > 0:22:15Is there anything else that you are worried about, having bought this?
0:22:15 > 0:22:19Find the right people to do the job. Most of the jobs, I'm going to do.
0:22:19 > 0:22:22The rest of them, I'm going to get a contractor.
0:22:22 > 0:22:25- Good luck.- Thanks very much. - I can't wait to see what it turns out like.
0:22:25 > 0:22:29- And whether or not you're lucky enough to keep that garage. - Let's see!
0:22:30 > 0:22:34This garage sealed the deal for Sharuz, although it's going to take him a while
0:22:34 > 0:22:38to get over the shock of over-paying for this house on auction day.
0:22:38 > 0:22:44But it's not all bad news. He'll have a steady stream of tenants racking up a 7% yield.
0:22:44 > 0:22:48How's he going to turn this place around? Will he find builders?
0:22:48 > 0:22:51Join me later in the programme and you can find out.
0:22:52 > 0:22:56'Coming up, I try and look on the bright side in County Durham.'
0:22:56 > 0:22:59Even in this state, there could be money in it.
0:23:02 > 0:23:06'While in north London, Sharuz has found it hard to make a decision.'
0:23:06 > 0:23:09In the kitchen, we done so much plans.
0:23:09 > 0:23:12More than 20 people came to do the design.
0:23:14 > 0:23:18'First, it's back to rural Cornwall to see if the teachers have learned any valuable lessons.'
0:23:18 > 0:23:22We've done a few things but we haven't had a single solution.
0:23:26 > 0:23:29'We return, now, to the Cornish hamlet of St Newlyn East,
0:23:29 > 0:23:32'about ten minutes' drive from Newquay.
0:23:32 > 0:23:35'This three-bedroom semi with stunning views
0:23:35 > 0:23:40'was bought for £165,000 by Steve and his wife Mary.
0:23:40 > 0:23:43'They are teachers currently living in Newquay.
0:23:43 > 0:23:47'They were going to refurbish and make it a family home for themselves
0:23:47 > 0:23:49'and their baby Solomon.
0:23:49 > 0:23:51'It had the potential to become fabulous!'
0:23:51 > 0:23:54So, what are the plans for it, then?
0:23:54 > 0:23:59- First of all, downstairs, we're going to put a wood-burner and redecorate.- Ooh, nice.
0:23:59 > 0:24:02- Design a new kitchen. - We're hoping to extend out.
0:24:02 > 0:24:07That will give us, hopefully, four bedrooms. For the minute, it's got three small bedrooms.
0:24:07 > 0:24:09We're going to get rid of the toilet,
0:24:09 > 0:24:13make one of the small bedrooms into a really nice family bathroom.
0:24:13 > 0:24:17'They'd set a budget of £18,000 to £20,000
0:24:17 > 0:24:21'and were hoping to get the work completed in three to four months.
0:24:21 > 0:24:24'It's now six months later and we've come back
0:24:24 > 0:24:27'to see what Mary and Steve have achieved.
0:24:27 > 0:24:30'Inside, the house has been transformed.
0:24:34 > 0:24:37'The family moved in about four weeks ago.
0:24:38 > 0:24:40'The living room has a lovely cottagey feel.
0:24:40 > 0:24:44'The wood-burning stove looks an absolute treat.
0:24:46 > 0:24:50'Those red units in the kitchen made you stop in your tracks.
0:24:50 > 0:24:52'Now they're green for go.
0:24:56 > 0:25:01'The downstairs bathroom has been converted into a utility and loo.
0:25:02 > 0:25:07'Upstairs, the front bedroom is now this wonderful family bathroom.
0:25:07 > 0:25:10'It gained extra space from the former loo,
0:25:10 > 0:25:12'as did Mary and Steve's bedroom,
0:25:12 > 0:25:16'which has this attractive exposed fireplace.'
0:25:16 > 0:25:19This wasn't a doorway, originally.
0:25:21 > 0:25:25The original doorway was here and there was no door on here.
0:25:25 > 0:25:29There was a toilet in this corner. We've knocked this wall right out.
0:25:29 > 0:25:33We made it into a nice big bedroom. I think it works really well.
0:25:33 > 0:25:36We've got two decent bedrooms now that we can use.
0:25:36 > 0:25:39We're really pleased with the space.
0:25:39 > 0:25:41'On the other side of the chimney breast,
0:25:41 > 0:25:44'the second bedroom is baby Solomon's.
0:25:45 > 0:25:47'Apart from the plumbing, electrics and plastering,
0:25:47 > 0:25:51'Mary and Steve have tackled a lot of work themselves.'
0:25:51 > 0:25:53We both worked really hard on the house.
0:25:53 > 0:25:57We've done everything we can. We've learnt to tile.
0:25:57 > 0:26:00We've done the skirting, cut that to the right size.
0:26:00 > 0:26:03Steve did a lot of work on the fireplace downstairs.
0:26:03 > 0:26:05That took quite a few days
0:26:05 > 0:26:09and also a lot of trailer trips of rubble to the tip!
0:26:09 > 0:26:12A builder friend said if we kept opening it up,
0:26:12 > 0:26:16we'd get to this brick archway, which we're really pleased with.
0:26:16 > 0:26:19The floor, we completely sanded that down.
0:26:19 > 0:26:22Found a bit of woodworm, so that needed some treatment.
0:26:22 > 0:26:25I'm really pleased. It's a great place for Solomon to play.
0:26:25 > 0:26:27Yeah, we're really pleased with it.
0:26:27 > 0:26:29'It's lovely, but not the only source of heat.
0:26:29 > 0:26:33'Central heating and new radiators have been installed,
0:26:33 > 0:26:36'heated by this eco boiler installed outside.
0:26:38 > 0:26:40'No work has been done to the outbuilding.
0:26:40 > 0:26:43'They've just pushed the boat out INSIDE the house.
0:26:43 > 0:26:46'But it hasn't all been plain sailing.'
0:26:48 > 0:26:50Our main concern has been
0:26:50 > 0:26:53when we removed the plaster from the chimney.
0:26:53 > 0:26:56On both sides, there's the area of damp.
0:26:56 > 0:26:58We've had various people look at it.
0:26:58 > 0:27:03We've done a few things, but haven't had a single solution.
0:27:03 > 0:27:06However, we do know from the smoke test that the chimney
0:27:06 > 0:27:11on this side of the house comes from an old range in the kitchen.
0:27:11 > 0:27:13So we're just going to have to give it time
0:27:13 > 0:27:16to try and get the bricks to dry out.
0:27:17 > 0:27:20'Work inside is almost complete.
0:27:20 > 0:27:24'There are a couple of doors to hang and an airing cupboard to build.
0:27:24 > 0:27:26'So, how much have they spent so far?
0:27:26 > 0:27:31'Are they keeping within their £18,000 to £20,000 budget?'
0:27:31 > 0:27:34I think we're probably coming in 19 and a half, 20,000.
0:27:34 > 0:27:36Having done a lot of the work ourselves,
0:27:36 > 0:27:40some good friends have helped us out with various skills and trades.
0:27:40 > 0:27:45I'm fairly happy with what we've got for the money we've spent.
0:27:45 > 0:27:48'That'll take their total investment to 185,000.
0:27:50 > 0:27:54'What will two local property experts think of the refurbishment?
0:27:54 > 0:27:56'First, the auctioneer who sold it.'
0:27:56 > 0:27:58They've done a wonderful job to the finish of the property.
0:27:58 > 0:28:02From top to bottom. The kitchen is to a reasonable standard.
0:28:02 > 0:28:05The living room is to an extremely high standard.
0:28:05 > 0:28:07Upstairs, I was pleased they've done away with the WC
0:28:07 > 0:28:10and created two good sized bedrooms.
0:28:10 > 0:28:13What stands out is the living room, opening up the fireplace
0:28:13 > 0:28:15and exposing the brickwork.
0:28:15 > 0:28:18It's made it a real feature of the property.
0:28:18 > 0:28:20The extension plans sound fantastic.
0:28:20 > 0:28:23If I was going to be living here it's really worth doing.
0:28:24 > 0:28:28'What effect could an extension have on the rental income,
0:28:28 > 0:28:31'if the house increased its bedrooms to four?'
0:28:31 > 0:28:36On the rental market, you should achieve in the region of £675 per calendar month.
0:28:36 > 0:28:38If the property was the four-bedroom variety,
0:28:38 > 0:28:41you could expect in the region of £850 per calendar month.
0:28:41 > 0:28:46Current rental, I would predict a rental income of £750 per calendar month.
0:28:46 > 0:28:50As a four-bed, it's going to be around £900 per calendar month.
0:28:51 > 0:28:53'Remaining as a two-bedroom property,
0:28:53 > 0:28:57'those valuations would produce a yield of about 4.5%.
0:28:57 > 0:29:02'But with four bedrooms, the yield rises to over 5.5%.'
0:29:04 > 0:29:06It's not something we were looking to do.
0:29:06 > 0:29:12We're not interested in renting it, but it's nice to know that that's an option and a very good price.
0:29:12 > 0:29:16'How much is the house now worth in its current configuration?
0:29:16 > 0:29:20'More than the £185,000 they've invested in here?'
0:29:21 > 0:29:27In current market conditions, we'd value the property between £225,000 to £235,000.
0:29:27 > 0:29:32Once completed, I would expect the property to fetch in the region of £220,000 to £230,000.
0:29:32 > 0:29:37'So, a potential gross profit of £35,000 to £50,000
0:29:37 > 0:29:39'before taxes and expenses.'
0:29:40 > 0:29:43- That's fantastic.- Yeah. Not unhappy with that at all.
0:29:43 > 0:29:45That's really good news.
0:29:47 > 0:29:50'And if they were to spend around £35,000 on an extension,
0:29:50 > 0:29:54'taking them to four bedrooms, the experts reckon they could generate
0:29:54 > 0:29:57'a gross profit of around £30,000 to £50,000.'
0:29:59 > 0:30:02I suppose, again, if we were going to extend it,
0:30:02 > 0:30:04it would be for us to enjoy it, wouldn't it?
0:30:04 > 0:30:07- Yeah.- But it's good to know that it would be adding value.
0:30:07 > 0:30:10'But I suspect Steve and Mary are just delighted
0:30:10 > 0:30:13'that their property homework has paid off
0:30:13 > 0:30:18'and they've learnt one of the main lessons of buying a property that you want to make your home.'
0:30:18 > 0:30:20Overall, we've really enjoyed the project.
0:30:20 > 0:30:25It's been hard work at times, but it's an amazing experience to have.
0:30:25 > 0:30:30It is hard work, but as long as you're prepared to make a few sacrifices, it's really worthwhile.
0:30:34 > 0:30:38'I'm in the rural community of Ludworth, in County Durham,
0:30:38 > 0:30:41'a village tucked amongst rolling hills and lush countryside
0:30:41 > 0:30:43'in the north of England.
0:30:43 > 0:30:46'The town has history, as the remains of Ludworth Tower,
0:30:46 > 0:30:49'a mediaeval manor house show.
0:30:49 > 0:30:54'Lovely though it is, I'd rather see a property that's not from the dark ages.'
0:30:55 > 0:30:58Well, they say that beauty is in the eye of the beholder.
0:30:58 > 0:31:01If the auction catalogue is anything to go by,
0:31:01 > 0:31:04today's property is a real shocker!
0:31:04 > 0:31:08Doesn't look too bad from the outside, but there are tell-tale signs.
0:31:08 > 0:31:14See the black coming up from the window there? This property has been extensively fire-damaged.
0:31:14 > 0:31:18Still, it had a guide price of just 25,000 quid.
0:31:18 > 0:31:21So how...bad can it be?
0:31:23 > 0:31:27'Aside from the devastating human and emotional toll of fires,
0:31:27 > 0:31:31'the fire-damage can mean structural, electrical and plumbing issues.
0:31:31 > 0:31:35'So this large rear garden and off-street parking out front
0:31:35 > 0:31:40'might not be enough to make this a must-have for a portfolio.'
0:31:47 > 0:31:50I've been in fire-damaged properties before...
0:31:52 > 0:31:54..but I've never seen anything like this.
0:31:54 > 0:32:00You know those instructional videos that fire crews give out,
0:32:00 > 0:32:04that they show to children in schools as to what can happen?
0:32:04 > 0:32:06It's just like one of those.
0:32:06 > 0:32:09It's really, really eerie.
0:32:09 > 0:32:12The singed, melted television.
0:32:12 > 0:32:16The only thing that's moving is the pendulum of a clock on the wall.
0:32:16 > 0:32:19Books, ornaments...
0:32:21 > 0:32:23I'm speechless, really.
0:32:32 > 0:32:35'Thankfully, no-one was seriously injured in this fire.
0:32:35 > 0:32:39'While house fires are statistically fewer than they used to be,
0:32:39 > 0:32:42'each one has a terrible personal cost.
0:32:42 > 0:32:46'Causes can range from chip pans, electrical faults, candles,
0:32:46 > 0:32:49'Christmas lights - you name it.
0:32:49 > 0:32:52'Whatever the cause, the effects are plain to see.
0:32:52 > 0:32:54'Total devastation.
0:32:54 > 0:32:56'The destruction continues throughout.
0:32:56 > 0:33:00'Upstairs, the three bedrooms are lurking somewhere
0:33:00 > 0:33:02'behind each of these doors.
0:33:06 > 0:33:09'The bathroom is just as bad as the rest of the house.'
0:33:13 > 0:33:17Let's think about what this place COULD be for a second.
0:33:17 > 0:33:21We know it's got three bedrooms and an upstairs bathroom, so that's a good start.
0:33:21 > 0:33:25If you could get this for around the guide price of £25,000
0:33:25 > 0:33:27and allowed yourself a fairly generous budget.
0:33:27 > 0:33:32What do you reckon? 20,000? 25,000? Let's say 25,000 to sort it out.
0:33:32 > 0:33:37New windows, new boiler, new electrics, sort out the flooring, repaint, replaster.
0:33:37 > 0:33:4025 grand. Bit of roof work. That'll probably do it.
0:33:40 > 0:33:42£50,000 is your total investment.
0:33:42 > 0:33:46Similar properties round here are selling for 60,000 to 70,000.
0:33:46 > 0:33:50So, even in this state, there could be money in it.
0:33:56 > 0:33:58'It's time to meet a local estate agent
0:33:58 > 0:34:04'to find out what she thinks of this place that was guided at £25,000.'
0:34:07 > 0:34:11This property is in the worst condition I've ever seen a property
0:34:11 > 0:34:13in the whole time I've been an estate agent.
0:34:13 > 0:34:16The property itself would have a good size lounge,
0:34:16 > 0:34:20a decent size kitchen-dining room, three good size bedrooms
0:34:20 > 0:34:22and a family bathroom.
0:34:22 > 0:34:25One thing that would make this property stand out is its garden.
0:34:25 > 0:34:29It has a very large garden and lovely views over open countryside.
0:34:29 > 0:34:32Seeing what work needs doing to the property,
0:34:32 > 0:34:36you can see why the property would be going for £25,000.
0:34:36 > 0:34:38'Looking beyond the blackened building,
0:34:38 > 0:34:43'once refurbished and reclaimed, what might this house be worth?'
0:34:44 > 0:34:49The resale price for this property would be approximately £75,000.
0:34:49 > 0:34:52'What could it achieve if it was rented out?'
0:34:53 > 0:34:58Once renovated, this property would achieve approximately £375 per calendar month.
0:35:01 > 0:35:05Huh! Well, a cautionary tale indeed, this one.
0:35:05 > 0:35:09But switching to the thing of is it worth buying as a property investment?
0:35:09 > 0:35:12You'd need to have it checked out by a specialist,
0:35:12 > 0:35:16to make sure there wasn't any major structural damage as a result of the fire.
0:35:16 > 0:35:21But it's in a good area. Once it's done up, it would be a great place to live.
0:35:21 > 0:35:24So if you can see through the mess, it's worth going for.
0:35:24 > 0:35:27Not one for the faint-hearted. Let's see what happened at the auction.
0:35:27 > 0:35:31We move straight on to our next available lot.
0:35:31 > 0:35:33Guide price is £25,000.
0:35:33 > 0:35:35I'll either start here on the phone
0:35:35 > 0:35:37or in the room, ladies and gentlemen.
0:35:37 > 0:35:4118,000? I'll start at 15 if it helps.
0:35:42 > 0:35:4315.
0:35:43 > 0:35:48At £15,000. You're going to let him have it? £16,000...
0:35:48 > 0:35:50'Although this was the last lot of the day,
0:35:50 > 0:35:53'bidding was fierce between a telephone bid
0:35:53 > 0:35:57'and the mystery man at the back of the room behind a pillar.
0:35:57 > 0:36:00'We pick up the auction again at £20,000.'
0:36:00 > 0:36:0320, sir? £20,000.
0:36:04 > 0:36:07I'll go 500, Adam. 20,500.
0:36:07 > 0:36:1021, sir?
0:36:10 > 0:36:13Yours at the moment. Right at the back of the room. 21. 500.
0:36:13 > 0:36:1522.
0:36:15 > 0:36:17£23,000. 500.
0:36:17 > 0:36:1924. And a half.
0:36:19 > 0:36:2125, sir? Taken 25.
0:36:21 > 0:36:23£25,000.
0:36:23 > 0:36:27In the room. Yours at £25,000. Anybody else coming in?
0:36:27 > 0:36:30£25,000. Standing at the back of the room.
0:36:30 > 0:36:33Out on the phone? At £25,000, it's your bid, sir.
0:36:34 > 0:36:35Congratulations!
0:36:35 > 0:36:39'The successful bid of £25,000, bang on the guide price,
0:36:39 > 0:36:43'was paid by banker turned property developer, Campbell.'
0:36:43 > 0:36:45# Open your account with me
0:36:45 > 0:36:48# Cos I'll give you security, my love
0:36:48 > 0:36:50# Take that to the bank... #
0:36:50 > 0:36:54'Bored with doing up flats, Campbell had travelled from home in Glasgow
0:36:54 > 0:36:57'in search of a different kind of property.
0:36:57 > 0:36:59'This is his first auction purchase.'
0:36:59 > 0:37:03- Campbell, good to meet you. - Pleased to meet you.
0:37:03 > 0:37:05I'm not sure whether to say congratulations or not.
0:37:05 > 0:37:10- You're obviously a man who likes a challenge!- Yes, I think this'll be an interesting project.
0:37:10 > 0:37:17- Tell me why you wanted to buy the house.- The first attractive thing about it was the price.
0:37:17 > 0:37:20And I think, having researched it a bit,
0:37:20 > 0:37:25there's a profit to be made and obviously, that's why I'm taking it on.
0:37:25 > 0:37:29The auction catalogue said that, because of the state,
0:37:29 > 0:37:34you couldn't do internal viewings, so you didn't get to see it inside.
0:37:34 > 0:37:37No. I could see in slightly through the front window,
0:37:37 > 0:37:40but even that, there was smoke on the window.
0:37:40 > 0:37:42So that was a bit of a mystery.
0:37:42 > 0:37:46- When was the first time you saw it inside?- Earlier today.
0:37:46 > 0:37:49Oh, wow! So, what do you think?
0:37:50 > 0:37:53Um... There's good points and there's bad points.
0:37:53 > 0:37:58There's possibly less fire-damage than I thought
0:37:58 > 0:38:00and less water-damage than I thought.
0:38:00 > 0:38:04My concern is because there's a hole in the roof,
0:38:04 > 0:38:08because of that, the water would be channelled down inside.
0:38:08 > 0:38:12But I think there's actually so many clothes and things in that room,
0:38:12 > 0:38:15it'll have soaked up a lot of the water.
0:38:15 > 0:38:18Hopefully, the structure is better.
0:38:18 > 0:38:22How ironic! The actual fact that there's so much stuff in there
0:38:22 > 0:38:25could have helped preserve the fabric of the building?
0:38:25 > 0:38:31I'm hoping that's the case, but I won't know until I start removing the contents.
0:38:31 > 0:38:33That was the good bit, then. What was the bad bit?
0:38:33 > 0:38:36Just the huge amount of stuff that's there.
0:38:36 > 0:38:39I was hoping one skip would do it. That's obviously optimistic.
0:38:39 > 0:38:42So I'll need to put that back in my budget.
0:38:42 > 0:38:44# ..Take that to the bank! #
0:38:44 > 0:38:48'This is a two-skip house if ever I saw one.
0:38:48 > 0:38:52'The worry for Campbell is that, although the contents absorbed a lot of the water,
0:38:52 > 0:38:56'they could also be covering up a multitude of structural sins.'
0:38:56 > 0:39:00Talk me through what you're going to do, where you're going to start.
0:39:00 > 0:39:04The first thing is going to be clearing the house.
0:39:04 > 0:39:10I've got a friend coming down with me in a couple of weeks for a couple of days. We'll get skips organised.
0:39:10 > 0:39:12After that, my main priority
0:39:12 > 0:39:16is to get the bathroom working and to get a shower working.
0:39:16 > 0:39:20Once I've got those in, then I've got my caravan for the evening
0:39:20 > 0:39:22and to keep my stuff clean and tidy.
0:39:22 > 0:39:26And I've got the shower for the end of the day to get washed up.
0:39:26 > 0:39:28That's before the roof!
0:39:28 > 0:39:31You can leave the roof as it is and you've got a natural shower!
0:39:31 > 0:39:37When we're down for those couple of days, I'll carry out some basic roof repairs.
0:39:37 > 0:39:39This is your first project like this?
0:39:39 > 0:39:42It's my first stand-alone development
0:39:42 > 0:39:44but I've done a lot of development
0:39:44 > 0:39:48on the flats I've owned in Glasgow over the years.
0:39:48 > 0:39:49Invariably, I've gutted them.
0:39:49 > 0:39:53This might be frightening, but it's a different type of project.
0:39:53 > 0:39:57I'm quite excited at the prospect.
0:39:57 > 0:40:02What damage could have been done to the structure and how have you checked that out?
0:40:02 > 0:40:09Effectively, I can't check it out until I start ripping up floorboards and taking down ceilings.
0:40:09 > 0:40:12The joists could have been fire-damaged
0:40:12 > 0:40:17or subsequently water-damaged cos the roof's been damaged for a year.
0:40:17 > 0:40:19I won't know that until I get in,
0:40:19 > 0:40:22but I think there's enough leeway in my figures
0:40:22 > 0:40:27that if there is some structural work, then it can be covered.
0:40:27 > 0:40:31Let's talk through your budget then. What's the budget for the work?
0:40:31 > 0:40:3417,000 is the figure I've got in mind.
0:40:34 > 0:40:39- Right.- It's mainly materials. I will be doing most of the work myself.
0:40:39 > 0:40:43What's the plan? What are you going to do with it once it's done?
0:40:43 > 0:40:46Once it's finished, which I'm hoping will be spring next year...
0:40:46 > 0:40:50So about, what? Six, nine months?
0:40:50 > 0:40:54Yeah. I'm not putting myself under any time pressure.
0:40:54 > 0:40:57In fact, I'm not doing anything for the next couple of months
0:40:57 > 0:41:00cos I've got work to do in my own flat.
0:41:00 > 0:41:03But spring next year, have it finished.
0:41:03 > 0:41:07Either to sell or I would consider renting it out.
0:41:07 > 0:41:09What do you think your biggest challenge is?
0:41:09 > 0:41:12I think the whole project, generally, is a challenge.
0:41:12 > 0:41:17It's just a case of breaking it down into stages, taking on the stages,
0:41:17 > 0:41:22getting them finished and being convinced that I'm making progress.
0:41:22 > 0:41:25- For the majority, is it just going to be you?- Yes.
0:41:29 > 0:41:32'This is a huge project to take on by yourself.
0:41:32 > 0:41:35'Plus, Campbell has a 150-mile commute
0:41:35 > 0:41:37'between Glasgow and Ludworth.
0:41:37 > 0:41:41'He'll be leaving behind his wife and their 15-month-old daughter.
0:41:41 > 0:41:47'But living in a caravan should make sure he knuckles down to the hard graft here.'
0:41:47 > 0:41:51What do the family think about what you've bought or haven't they, presumably, seen it yet?
0:41:51 > 0:41:57My wife hasn't seen it yet. She's seen a couple of photos.
0:41:57 > 0:42:00I'm not sure when she's coming down to visit!
0:42:00 > 0:42:03- Get it cleaned up a bit first! - BOTH LAUGH
0:42:03 > 0:42:06But she's very supportive.
0:42:06 > 0:42:09She knows it's a project that I'm interested in taking on,
0:42:09 > 0:42:12- so she's very supportive.- Fantastic.
0:42:12 > 0:42:16Well, congratulations and the very best of luck.
0:42:16 > 0:42:19- Really look forward to seeing how you get on.- Thanks very much.
0:42:20 > 0:42:24Be honest. Would YOU want to take on a project like this?
0:42:24 > 0:42:28There may well be money in it, but there are so many unknowns.
0:42:28 > 0:42:33It's not until you start clearing this place out, you'll know if there's been structural damage,
0:42:33 > 0:42:38quite how much work and, therefore, money, there is to spend.
0:42:38 > 0:42:40Campbell's got some challenges ahead.
0:42:40 > 0:42:44Find out how he gets on later in the show.
0:42:47 > 0:42:50Have our fearless developers emerged victorious?
0:42:50 > 0:42:53Or have they floundered in the shallow end?
0:42:53 > 0:42:55Let's go back and find out.
0:42:57 > 0:43:00'We're back in Edmonton, in the north London borough of Enfield,
0:43:00 > 0:43:05'to see how first-time property developer Sharuz got on with this three-bedroom semi.
0:43:05 > 0:43:08'The place was tired and dated,
0:43:08 > 0:43:11'but was ideally located for the rental market,
0:43:11 > 0:43:15'since it was almost within sight of a huge local hospital.'
0:43:15 > 0:43:18# Doctor, my eyes!
0:43:18 > 0:43:21# Tell me what is wrong... #
0:43:21 > 0:43:25'The house itself looked like a suburban semi,
0:43:25 > 0:43:28'but inside it felt more like a mini gothic mansion
0:43:28 > 0:43:30'with panelled staircase and carved wood.
0:43:30 > 0:43:34'Previous owners had knocked through the sitting room to the kitchen.
0:43:34 > 0:43:38'The open-plan layout floods the downstairs with light, which is good.
0:43:38 > 0:43:40'I didn't love upstairs quite so much.
0:43:40 > 0:43:44'It would be fair to describe it as "patchy".
0:43:44 > 0:43:46'At least the work had been started.
0:43:46 > 0:43:51'Outside, there was a ramshackle shed and a spacious garage,
0:43:51 > 0:43:54'which Sharuz had his eye on for himself.'
0:43:54 > 0:43:57Why did this house appeal to you in the first place?
0:43:57 > 0:44:00Because of garage, you know. I love the garage.
0:44:00 > 0:44:03I was looking for the house with the garage.
0:44:03 > 0:44:09This one was a big one and I could park my van, my car.
0:44:09 > 0:44:11'Sharuz bought the property to rent out,
0:44:11 > 0:44:15'so he was hoping to add off-street parking at the front
0:44:15 > 0:44:17'to satisfy the needs of his future tenants.
0:44:20 > 0:44:24'He'd got carried away at auction and paid more than he intended.
0:44:24 > 0:44:27'He bought it for 236,000
0:44:27 > 0:44:30'and planned to spend 30,000 on the renovations.
0:44:30 > 0:44:35'He also wanted to have tenants in within about three months.
0:44:36 > 0:44:39'We've come back just over four months later,
0:44:39 > 0:44:42'to see if Sharuz's wildest dreams have come true
0:44:42 > 0:44:46'and he's managed to keep his garage AND find tenants.
0:44:59 > 0:45:03'In those mere four months, Sharuz has transformed this house
0:45:03 > 0:45:05'from dilapidated to delightful.'
0:45:07 > 0:45:12We've done a lot of work. I was not expecting that much work.
0:45:12 > 0:45:15Also, the one thing is changing your mind as well.
0:45:15 > 0:45:18Sometimes, when you do something, "This is not right."
0:45:18 > 0:45:22You do it again because you want to finish it nice.
0:45:22 > 0:45:28# A change of heart can take you unaware... #
0:45:28 > 0:45:32'Changing your plans can be costly and time-consuming,
0:45:32 > 0:45:36'but it looks like these were all changes for the better.'
0:45:36 > 0:45:39# ..A change of heart. #
0:45:39 > 0:45:43Oh, yes. In the kitchen we done so much plan.
0:45:43 > 0:45:47More than 20 people they came to design it.
0:45:47 > 0:45:50Eventually, we just tried to go for the cheapest possible.
0:45:50 > 0:45:52It's come nice.
0:45:52 > 0:45:55'Upstairs, the two single bedrooms have been finished
0:45:55 > 0:45:58'and painted in neutral light colours.
0:46:01 > 0:46:05'The master double bedroom is unrecognisable
0:46:05 > 0:46:08'from the dusty shell we first saw.
0:46:11 > 0:46:14'The old bathroom had an over-sized and overly fancy bath.
0:46:14 > 0:46:18'But this, too, has been ripped out and replaced.
0:46:23 > 0:46:26'Out back, the collapsing old shed
0:46:26 > 0:46:28'has been replaced by a brand new extension,
0:46:28 > 0:46:31'which has become a cosy extra living space.
0:46:31 > 0:46:33'When Sharuz bought this place,
0:46:33 > 0:46:38'he was much more interested in the garage than the house itself.'
0:46:38 > 0:46:43The garage fooled me to buy the property, otherwise I wouldn't buy it.
0:46:43 > 0:46:46But I haven't done nothing for the garage
0:46:46 > 0:46:51because I got the front driveway which is more handy.
0:46:51 > 0:46:53Just going to use it as a storage.
0:46:58 > 0:47:02'Sharuz has also had a change of heart about another aspect,
0:47:02 > 0:47:07'although maybe it's more accurate to say his wife Maria changed it for him.'
0:47:07 > 0:47:11My wife says she wants to move in here and after we changed our mind.
0:47:11 > 0:47:15We done the job to live here, not for the rent.
0:47:16 > 0:47:19'Since Sharuz and Maria were refurbishing a home,
0:47:19 > 0:47:21'not an investment property,
0:47:21 > 0:47:25'they didn't scrimp on the quality of the fixtures and fittings.'
0:47:25 > 0:47:31The budget was about 30,000, but after that we decided we're going to live in here
0:47:31 > 0:47:34and actually completely changed our plan.
0:47:34 > 0:47:38We tried to spend as much on good quality stuff in the house.
0:47:41 > 0:47:44'Sharuz already thought he paid too much for the house,
0:47:44 > 0:47:47'£236,000.
0:47:47 > 0:47:51'Along with the fee of £6,000 he had to pay the vendor,
0:47:51 > 0:47:54'plus the £46,000 he spent on renovations.
0:47:54 > 0:47:58'That brings his investment to £288,000.
0:48:03 > 0:48:08'So, do two local estate agents reckon it was money well spent?'
0:48:08 > 0:48:10I like the finish of the property.
0:48:10 > 0:48:15No bold colours. I like the dark flooring, the contrast.
0:48:15 > 0:48:17Bathrooms and kitchens always sell well.
0:48:17 > 0:48:19I think it's finished to a nice standard.
0:48:19 > 0:48:22This property would appeal to a large family.
0:48:22 > 0:48:26You've got parking at the front of the house, large garage at the back,
0:48:26 > 0:48:28two receptions and a spacious kitchen.
0:48:28 > 0:48:32'The decoration and refurbishment certainly meet with their approval,
0:48:32 > 0:48:36'but will that translate into value added onto the house?
0:48:36 > 0:48:40'It's time to find out what the experts think it's now worth.'
0:48:40 > 0:48:43If I put the property on the market for sale,
0:48:43 > 0:48:46I'd expect it to achieve in the region of £290,000 to £300,000.
0:48:46 > 0:48:50Looking to achieve in the region of between £290,000 and £300,000.
0:48:51 > 0:48:56'Based on those figures, that would mean a profit of between £2,000 and £12,000,
0:48:56 > 0:49:00'minus expenses and legal fees - so not a loss, after all.'
0:49:01 > 0:49:04Not bad. I'm pleased, you know.
0:49:04 > 0:49:06We are pleased we have the house, anyway.
0:49:06 > 0:49:10'Initially, Sharuz had planned to let this house out.
0:49:10 > 0:49:12'According to the estate agents,
0:49:12 > 0:49:15'this high-standard finish would get him a rent
0:49:15 > 0:49:19'of between £1,400 and £1,500 per calendar month.'
0:49:19 > 0:49:21We're happy. Gonna keep it.
0:49:24 > 0:49:28'We're back in the countryside near Durham, in Ludworth,
0:49:28 > 0:49:32'to see how ex-bank worker Campbell got on with his burnt-out house.
0:49:32 > 0:49:35'This was the first auction property he'd ever bought
0:49:35 > 0:49:38'and, boy, was it a corker?!
0:49:38 > 0:49:40'It didn't look too bad from the outside,
0:49:40 > 0:49:45'but behind the front door, it was eerie and surreal.
0:49:45 > 0:49:48'Everything - and I do mean everything - had melted and burnt
0:49:48 > 0:49:51'or been smoke-damaged.'
0:49:51 > 0:49:54Because of the state, you couldn't do internal viewings,
0:49:54 > 0:49:57- so you didn't get to see it inside. - No.
0:49:57 > 0:50:00I could see in slightly through the front window,
0:50:00 > 0:50:02but even that, there was smoke on the window.
0:50:02 > 0:50:05The inside was a bit of a mystery.
0:50:05 > 0:50:09'But Campbell didn't seem fazed when he saw the amount of clearing-up
0:50:09 > 0:50:14'he had to do before he'd even be able to find out what structural shape the property was in.
0:50:14 > 0:50:17'But it didn't look good.
0:50:17 > 0:50:22'Upstairs, it was hard even to pick out the three bedrooms.
0:50:22 > 0:50:27'While downstairs, the kitchen and sitting room did bear a faint resemblance to their past use.
0:50:27 > 0:50:32'There was clearly a massive amount of renovation to do here.'
0:50:32 > 0:50:34What do you think your biggest challenge is going to be?
0:50:34 > 0:50:37I think the whole project, generally, is a challenge.
0:50:37 > 0:50:40It's just a case of breaking it down into stages
0:50:40 > 0:50:43and being convinced that I'm making progress.
0:50:44 > 0:50:49'Campbell bought the three-bedroom semi for £25,000.
0:50:49 > 0:50:54'He planned to do most of the work himself, armed with a £17,000 budget for materials.
0:50:54 > 0:50:57'He was pretty laid-back about the time scale,
0:50:57 > 0:51:02'but thought it would take six to nine months to get the place ready.
0:51:02 > 0:51:06'We've come back just over three YEARS later,
0:51:06 > 0:51:10'to see if Campbell has helped this property come back to life.'
0:51:10 > 0:51:15# Back to life Back to the present time
0:51:15 > 0:51:19# Back from a fantasy, yes
0:51:20 > 0:51:24# Tell me now Take the initiative
0:51:24 > 0:51:31# I'll leave it in your hands until you're ready
0:51:31 > 0:51:35# However do you want me However do you need me... #
0:51:35 > 0:51:39'Well, as you can see, it's not yet finished, but it's well on the way.'
0:51:39 > 0:51:42It's been over three years I've had it now.
0:51:42 > 0:51:44So obviously, it should be finished.
0:51:44 > 0:51:47When I first bought it, I was doing another project.
0:51:47 > 0:51:50It took me almost a year to get that finished.
0:51:50 > 0:51:53So when I first bought the property, I wasn't here for a year,
0:51:53 > 0:51:56after getting it wind and water-tight.
0:51:56 > 0:51:59Then, unfortunately, my mother took ill after that.
0:51:59 > 0:52:04I'm her main carer, so I'm spending a lot of time at my mother's,
0:52:04 > 0:52:08looking after her, which has left me very little time to get down here
0:52:08 > 0:52:11and get the project progressed.
0:52:11 > 0:52:16'Being a full-time carer as well as doing up such a demanding house,
0:52:16 > 0:52:21'meant that it quite understandably took second place to his mother's needs.
0:52:24 > 0:52:30'But this old property had some not-so-pleasant surprises in store.'
0:52:30 > 0:52:35A major problem that was nothing to do with the fire was damp.
0:52:35 > 0:52:39I had re-laid the timbers in this living room,
0:52:39 > 0:52:42re-laid all the joists, replaced a lot of them.
0:52:42 > 0:52:47As I was laying the floorboards during very heavy rain,
0:52:47 > 0:52:51I noticed water coming up through the sub-floor area.
0:52:51 > 0:52:55It's obviously been like that for a number of years.
0:52:55 > 0:52:59I then had to seal the sub-floor area to prevent that.
0:52:59 > 0:53:05That was a major task that was absolutely nothing to do with the fire-damage to the property.
0:53:05 > 0:53:11'Upstairs, we can actually see the bedrooms for the first time.
0:53:11 > 0:53:14'There's a double bedroom.
0:53:17 > 0:53:20'Oh, look! Another double bedroom!
0:53:20 > 0:53:24'But I'm afraid that third bedroom will have to remain a mystery
0:53:24 > 0:53:27'as it's still being used as a store room.
0:53:27 > 0:53:30'Upstairs is virtually unrecognisable,
0:53:30 > 0:53:32'particularly the bathroom.'
0:53:32 > 0:53:35I've been doing most of the work myself.
0:53:35 > 0:53:39I don't think my wife fully appreciates
0:53:39 > 0:53:42the amount of work I'm having to do.
0:53:42 > 0:53:44And the fact I'm living on site,
0:53:44 > 0:53:47it's not a particularly pleasant experience.
0:53:47 > 0:53:52She sees me disappear for a few days and she thinks I'm away on my holidays or something!
0:53:52 > 0:53:56'I'm pretty sure Campbell's wife will realise he's not been skiving
0:53:56 > 0:53:59'when she sees the transformation in this house.
0:53:59 > 0:54:03'But all the travelling from Glasgow plus demands from family and home
0:54:03 > 0:54:05'have made it very tough.'
0:54:05 > 0:54:08It is, actually, quite difficult.
0:54:08 > 0:54:13I now realise, it's almost a three-hour journey to get down here,
0:54:13 > 0:54:18so any visit, that's six hours out my working day just travelling.
0:54:18 > 0:54:23I've got a four-year-old daughter, so I'm not seeing as much of her as I would like to.
0:54:23 > 0:54:26It's proving harder than I thought it would, initially.
0:54:27 > 0:54:30'Still, at least Campbell was able to avoid the caravan life
0:54:30 > 0:54:35'by getting the house water-tight, and camping inside while the work progressed.
0:54:35 > 0:54:41'So, as the end of the project looms into view, how's the budget holding up?'
0:54:41 > 0:54:46So far, I think I've spent about £12,000.
0:54:46 > 0:54:49It'll be another £2,500, maybe £3,000 for me to finish it.
0:54:49 > 0:54:52Because I've owned the property so long,
0:54:52 > 0:54:55we're now into council tax payments and such like.
0:54:55 > 0:54:58'Campbell bought it for £25,000
0:54:58 > 0:55:03'and expects to spend a total of £15,000 to complete the refurbishment,
0:55:03 > 0:55:06'bringing his total investment to £40,000.
0:55:06 > 0:55:09'It's time to find out what two local estate agents think
0:55:09 > 0:55:11'of this reclaimed house.'
0:55:11 > 0:55:15Given the condition of the property when the owner bought it,
0:55:15 > 0:55:18he's certainly making good strides towards making the property good.
0:55:18 > 0:55:20Unfortunately, it is some way off.
0:55:20 > 0:55:23The work he has done so far looks to be of a good standard.
0:55:23 > 0:55:25The property should be really nice.
0:55:25 > 0:55:28Once finished internally, I'd advise the owner
0:55:28 > 0:55:31to spend time doing some work outside the property -
0:55:31 > 0:55:33the garden and the off-street parking.
0:55:33 > 0:55:37These will both help the property when it comes to selling.
0:55:37 > 0:55:41'What do they think it might sell for when Campbell finishes the work?'
0:55:41 > 0:55:43When the refurbishment work is completed,
0:55:43 > 0:55:47I would anticipate an asking price in the region of £65,000.
0:55:47 > 0:55:52Once the property's completed, I'd advise a sale price of £65,000.
0:55:53 > 0:55:58'That would mean a profit of 25,000 before costs and expenses.'
0:55:58 > 0:56:00I'm very happy with that.
0:56:00 > 0:56:03The fact that I bought it at such a low figure,
0:56:03 > 0:56:06there was always going to be a profit there.
0:56:06 > 0:56:10'And what could this place attract on the rental market?'
0:56:10 > 0:56:16I anticipate a monthly rental income of around £350 per calendar month.
0:56:16 > 0:56:20I'd advise a rental price for the property of £400 a calendar month.
0:56:20 > 0:56:23Yes, they're quite healthy figures.
0:56:23 > 0:56:27Once I've finished the house, which hopefully won't take too much longer,
0:56:27 > 0:56:32I can make a decision as to whether I want to rent out or try and sell.
0:56:32 > 0:56:39'I'm guessing Campbell's not rushing back to an auction to buy his next property. Or is he?'
0:56:39 > 0:56:42I'm looking forward to some quality time with my family.
0:56:42 > 0:56:47Perhaps we'll get away on a holiday and spend some good time together.
0:56:49 > 0:56:52Not enough for you? Well, there's plenty more.
0:56:52 > 0:56:56Yes, make sure you join us next time for more Homes Under The Hammer.
0:56:56 > 0:56:58- See you then.- Goodbye.- Goodbye.
0:56:58 > 0:57:00Subtitles by Red Bee Media Ltd
0:57:00 > 0:57:02E-mail subtitling@bbc.co.uk