Episode 78 Homes Under the Hammer


Episode 78

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Despite changing market conditions,

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people still want a slice of the property action.

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If you're prepared to take the plunge, auctions can be a great place to start.

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It can be fast and frantic, but it can also be brilliant buying your home under the hammer.

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Some properties are popular at auction, others go unsold.

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So the auction room can be a difficult place to conquer.

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So let's take a look at today's lots that won the hearts of our buyers.

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'In rural Cornwall, I spy huge potential in a shed!'

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Could you possibly get planning permission for a separate dwelling?

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'While in Edmonton, north London, I take a walk on the wild side.'

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I'm already laughing. Look at pretty Polly on the door.

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'And in the village of Ludworth, County Durham,

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'there's a house which leaves me lost for words.'

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I'm speechless, really.

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'All these properties have been sold at auction.

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'We'll find out who bought them and what they paid when they went under the hammer.'

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Today, I'm in the little hamlet of St Newlyn East,

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just outside Newquay in Cornwall.

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Absolutely glorious place to live.

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That's convenient cos there's a property up for auction.

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'Yes, if you fancy a rural retreat and a little piece of heaven,

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'you could do a lot worse than here.

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'There are country pubs, open fields, amazing scenery

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'and a convenient bus route, all on your doorstep.

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'It might be a little too remote for some people,

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'but others, myself included, would relish the quiet village lifestyle.'

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So, what does a guide price of £160,000 to £180,000 get you round here?

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Well, I'll come to the house in a minute.

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First of all, it got you a very large amount of...

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well, sort of parking area, this outbuilding.

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-CHUCKLING:

-But hey...!

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By far the most impressive thing so far is THAT view!

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Absolutely spectacular! Do we really care what the house is like?

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As it happens, it looks pretty good, too!

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# It's a perfect view... #

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'With far distant views from the back,

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'this feels a wonderfully peaceful location.

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'This semi-detached country cottage has a large front garden

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'and an even bigger one at the rear.

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'Time to check out the INside.'

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Oh, OK!

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Well, unless that's the second toilet,

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I don't like the location, as you come in through back door.

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Hopefully, there will be another one upstairs,

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but first impressions, mmm, jury's out.

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Not a bad size kitchen, and you have got lots of windows

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looking out onto the view - that's what I want to see in this place!

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Massive windows making the most of the location.

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Through into the lounge and not bad.

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Dual aspect, a nice big open fireplace with this stone,

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which I think works quite well.

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And in terms of general condition, not too bad!

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Oh. An alternative door for you. Let's take a look upstairs.

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'So, the main front door opens on to the lounge and stairs.'

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One thing that strikes you about this house, lots of natural light. I really love that.

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Up here, three bedrooms and...

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Well, there isn't a bathroom but at least there is a loo.

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I wonder if there's some reconfiguration you could do here.

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The three bedrooms are a bit small. One there, one there and one there!

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I think, take some of these partition walls down,

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create a bigger bathroom, maybe even lose one of the bedrooms.

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Then you end up with a really nicely proportioned upstairs.

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'Whatever the new owner decides,

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'I'd be keen decorate these rooms sympathetically

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'and preserve that cosy cottage style.

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'As for those views,

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'they certainly make up for the cramped feeling in the bedrooms.

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'Downstairs in this property that was guided at £160,000 to £180,000,

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'I think I'd keep the fireplace, as it adds to the character.

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'Maybe install a wood-burning stove.

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'We always advise getting a safety check on the chimney by an expert.

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'And if the bathroom was relocated upstairs,

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'there could be great potential to redesign the kitchen

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'to incorporate just a loo down here.

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'So, apart from the lovely views, what else is on offer outside?'

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So at the side of the property, you've got these outbuildings.

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They're currently used as storage.

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You've also got quite a lot of space.

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So I'm wondering what the options are.

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You could keep it as it is

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or could you possibly try and get planning permission for a separate dwelling here?

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I'm sure that the Local Authority would be very sensitive about that.

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A way round it might be to do something which has been inspired by what I've seen here.

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This is called The Studio.

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In the past, this might have been used for a pottery or craft studio.

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Council planners are very, very supportive

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of live-work units in rural communities.

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If you apply to convert this as somewhere where somebody could live

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and maybe have some kind of a craft business,

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I think you might be on to a bit of a winner.

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With that could come a healthy profit.

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'To discover more about potential for this place,

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'we invited the auctioneer who sold it to come and explain

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'what he thinks are the merits of this auction lot.'

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This property is fantastic.

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It's got the raw ingredients to be a wonderful family home.

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It's very basic. It does require modernisation from top to bottom,

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which would include the classic kitchen-bathroom decoration

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and possible extension to the side.

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'But this auction lot has much more than the property going for it.'

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A really exciting factor is, of course, the quarter acre of gardens and ground,

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but more so is the detached annexe workshop/store,

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which offers a vast scope of possibilities for the owner.

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Is it developable into something that could be either lived in

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or used for holiday uses?

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'Assuming it was left as it is,

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'how much could it be worth after a full refurbishment?'

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Once refurbished, the property should be worth somewhere in the region of £225,000.

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'What if it was rented out?'

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You could expect to achieve in the region of £650 to £700 per calendar month.

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Well, it's clearly in need of a bit of modernisation,

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but what a fantastic property!

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It just has that feel about it.

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Then you come outside or look through the windows

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and you've got that in front of you and Newquay...

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-SIGHS

-..within a stone's throw.

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Let's see who spotted it when it went under the hammer.

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We move on to lot 188.

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A stunning spot, beautiful cottage.

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You've got the compound to the right-hand side, a single-storey building.

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What could that be? It's a great games room or something for the children.

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Who's going to kick us off for 180? Straight in. 180 do I see anywhere?

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OK, 170, I'll ask.

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160? 160, we're away. At 160.

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Is that a wave from the blue jumper? 162.

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At 162,000. 164 just in front.

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164 is in the room. 165 I'll take. 165.

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At 165. At 165,000.

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At 165,000 for the first time.

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At 165,000...for the second time.

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To the lady in the blue, for the third and final time.

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At 165,00.

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It's selling at £165,000...

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BANGS GAVEL Congratulations. Well done!

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'That final successful bid of £165,000 was made by Mary in the blue jumper.

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'She was at the auction with her friend, Blanca,

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'who was holding Mary's new baby, Solomon, during the bidding.

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'Mary and her husband, Steve, both teach locally.'

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# Teacher, teacher

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# There's so much I'm longing to know... #

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'I met up with them back at the property to find out their plans.'

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-Steve, Mary, great to meet you both.

-You too.

-Congratulations!

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Lovely house. Why did you want to buy it?

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We were firstly attracted to the space, the outbuildings,

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this area - it's obviously great being so close to the coast.

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Having the countryside around us is just amazing!

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-Right. Where do you live at the moment?

-We live in Newquay.

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-We've got a flat there.

-Right.

-We've been there for four years.

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We're looking to get somewhere bigger.

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It's a nice maisonette, beautiful view, right by the river.

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But we've got a little one now.

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We want him to have space outside to be able to run around when he's a bit bigger.

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-What an amazing place to grow up!

-It's fantastic!

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Just a bit out of Newquay, where our community is,

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but not too far - about ten minutes' drive, so it's ideal for us.

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-And the views are just outstanding.

-Yeah. They are amazing.

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'The family plan to continue living in their flat for about four months,

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'until they've done the initial work on their new house

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'to make it OK to move in.'

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So, what are the plans for it?

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Well, downstairs, we're just going to put a wood-burner and redecorate.

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-Ooh, nice!

-We've designed a new kitchen.

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And then the current bathroom, we're turning into a utility room

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with just a single toilet.

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We're hoping, at some point, to extend out. That'll give us four bedrooms.

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But for the minute, it's got three very small bedrooms.

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We're going to get rid of the toilet and make one of the small bedrooms

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into a really nice family bathroom, then have two decent sized rooms.

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-The extension can come later.

-Budgets, stuff like that?

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We were really pleased to get it at the price we did. That's given us a bit more.

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We were looking to go up to 180,

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so that's given us 18,000, 20,000 to play with, as long as we're careful.

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# ..Make me, make me, make me the teacher's pet. #

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'Steve teaches maths, so I'm sure he'll keep a tight rein on the budget.

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'They're going to have a combi boiler and radiators installed,

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'plus a possible rewire.

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'What about the outbuildings?'

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We've got lots of ideas, but nothing concrete at the minute.

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It's just a great storage space.

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Maybe play a bit of table tennis in the meantime!

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What about outside? The garden's a bit overgrown at the moment.

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Yeah, we'll try and neaten the garden up.

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We'll probably dig most of it up and lay new grass eventually,

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but not sure that'll be within four months.

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-Anything you're worried about?

-Just that we'll go over budget.

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-Yeah, it's new to us.

-Yeah.

-We've never had a project like this.

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So it's all an unknown, I suppose.

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At the minute, plans are coming together but, yeah...

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That's the concern. You never really know how it's going to turn out.

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-But hopefully it'll turn out well!

-Hopefully!

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Listen, congratulations. Good luck with it.

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-And really look forward to seeing how you get on.

-Yeah. Thank you.

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Well, a great result for Mary and Steve.

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What a fantastic family home this will make for them and little baby Solomon.

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Work to be done, but I think they'll enjoy doing it.

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You can find out how they get on later in the show.

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I've travelled to north London, to a place called Edmonton.

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It's roughly 12 miles from the centre of the city

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and the property I'm here to see is minutes away from this -

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the North Middlesex University Hospital.

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Two years ago, it was given a major revamp

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costing over £120 million.

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It's one of the major employers in the area.

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And what do employees need?

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That's right! Accommodation!

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This auction lot could be a perfect buy-to-let opportunity - and it's just there!

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# Doctor, my eyes! Tell me what is wrong

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# Was I unwise

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# To leave them open for so long...? #

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'Here's, hopefully, just what the doctor ordered -

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'a three-bedroom semi-detached house with a guide price of 175,000.

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'You might think this is a fairly standard semi, but you'd be wrong.

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'Inside, it's a small gothic mansion-ette.'

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-CHUCKLING

-I'm already laughing. Look at pretty Polly on the door!

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I love that! This house has character.

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The first thing that strikes you when you walk in the door

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is the fact that this wall has been taken out.

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I love it because lots of light's coming through

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and you really feel the benefit of this wonderful open space.

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Again, through here, second reception room.

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Bits of fitted furniture like this, that don't really work.

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But if you can see beyond all this, it's a fabulous space!

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Again, look, this is the kitchen - enormous! Perfect for a family!

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With a bit of thought and effort and love put into this place,

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I think it could be a great house.

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'Taking a closer look at the decor in the lounge,

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'it's clear to see the previous owner had some wild tastes.'

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# In the jungle, the mighty jungle the lion sleeps tonight... #

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'I love the way this house flows. The open-plan layout really works.

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'But you'll need rose-tinted glasses when you look around upstairs!

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'It's, well, not quite a ROARING success.

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'It looks as if somebody has started the work but left halfway through.

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'Oh, dear! But once again, the space is good.

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'So you need to try and look past the brick dust and dodgy wiring,

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'and see how great these three bedrooms could be.

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'The master bedroom has been replastered and just needs a final push to finish it off.

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'There's a small, box-like single bedroom to the rear

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'and a much better sized single next door to it,

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'to which the previous owner has decided to add a wash basin.

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'As for the bathroom,

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'well, you can see where the budget's gone here!

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'Outside, there may be a really decent garden,

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'but it's hard to tell with this huge shed - it's got to go.

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'The garage at the bottom could be a keeper,

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'especially if you're the sort of person who fills a garage

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'with everything except a car.

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'The garage is accessed from a rear lane.

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'If that garage is stuffed full, there are possibilities out front.'

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There's plenty of scope to create off-street parking,

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and let's be honest, this is the place you want to park your car, if at all possible.

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You only need to look at the neighbours to see it's a popular choice.

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Don't be fooled into thinking your application will get the green light

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because your neighbours have set a precedent.

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It will almost definitely strengthen your case with the council,

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but don't bank on it.

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# Ain't it kind of funny Boils down to money... #

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'Dropping the kerb may not add pound signs to the end value,

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'but will ultimately make it much more saleable.

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'What does a local estate agent make of this property

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'that was guided at 175,000?'

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My first impression is the house needs a bit of work inside.

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The space is good and the location's very good.

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The reason this is such a good area is it's an up-and-coming area,

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a lot of first-time buyers

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and high rental figures achieved for these properties.

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'So, let's talk figures.'

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Once the house is renovated, it would go on the market for £280,000.

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'What does he think it could achieve on the rental market?'

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This would go on the rental market for £1,350 per calendar month.

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You can't argue with those figures!

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This property's proximity to the hospital makes it an ideal buy-to-let.

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Let's find out who wanted this one when it went under the hammer.

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Lot 30 is a three-bed semi-detached house. 200?

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If not, you tell me.

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150 in the front. 150. 155?

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160. 161?

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162. 163? 164...

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'There was a lot of interest in this property.

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'We rejoin the auction at 218,000.'

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..218. Had a feeling that you were there.

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218. 219?

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220, madam? Yeah?

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221? 222?

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221 with you first time.

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Sec... 222. 223?

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Yeah? 224?

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225? 226?

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227? 228?

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229?

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230?

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231? 232?

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233?

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234?

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235? 236?

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235 with you.

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236? If not, 235 first time.

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Second time...

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2... Again? 236.

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237?

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236 with you. First time. Second time.

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Third and last time...

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Sold, 236.

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'That successful bid of 236,000,

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'a whopping 61,000 over the guide price, came from Sharuz.

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'Originally from Iran, he runs a carpet-fitting business,

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'so he's ideal to work some magic on this property.'

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# On a magic carpet ride

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# We can touch the sky And like a bird we'll fly

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# There's no end to what we'll do Me and you... #

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'I went back to the house to meet him and find out his plans.'

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-Sharuz, congratulations.

-Thank you very much.

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-What was it like for you on auction day? Did you expect to get this?

-Yes, I went to auction to buy it.

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-But it was a bit high price I paid.

-You paid 236,000.

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Plus the legal cost of the other solicitors, which is almost £6,000, which I was not expecting.

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-So did you still want the property?

-I did want it, but I was in doubt.

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-Did you think about getting out of it?

-I did.

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-It's a legally binding contract. The hammer goes down and the property's yours.

-Yeah.

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When you found out that you couldn't back-pedal,

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you had to keep it, how did you feel then?

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You know, I just tried to forget what was happening.

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Just look forward for future.

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'With extra costs and getting carried away at the auction,

0:19:380:19:41

'Sharuz hasn't got off to the best of starts,

0:19:410:19:44

'but he's taking a long-term view of this development, which he plans to let in the short term.

0:19:440:19:49

'But as he says, he's looking to the future.'

0:19:490:19:52

When I know I am going to get the money I spent plus auction fees, I'm going to sell it.

0:19:520:19:57

So you're going to sit on it for a while until you feel you can sell it at a good profit?

0:19:570:20:02

Probably not profit. Just I get my money back.

0:20:020:20:05

-You really don't feel you're going to make a profit?

-I don't think so.

0:20:050:20:08

'Now Sharuz wants out of this property as soon as he can do so

0:20:080:20:12

'without losing any money.

0:20:120:20:14

'However, depending on how much he spends on renovation,

0:20:140:20:17

'he could still make a rental yield of around 7%, so all is not lost.

0:20:170:20:21

'But he bid a huge 61,000 over the guide price,

0:20:210:20:25

'so must have really wanted it at some point.'

0:20:250:20:29

Why did this house appeal to you in the first place?

0:20:290:20:33

Because of garage, you know. I love the garage.

0:20:330:20:36

I was looking for the house with a garage.

0:20:360:20:39

This one was a big one. I could park my van, my car.

0:20:390:20:44

That's why I went to auction because of this house and I bought it.

0:20:440:20:48

You bought it because you like the garage to park YOUR van in.

0:20:480:20:51

-But you're not going to live here!

-But we are not living far away.

0:20:510:20:55

And I can walk from the other house to here.

0:20:550:20:59

-So you bought the house so you can keep the garage?

-Yeah. I'm gonna keep the garage.

0:20:590:21:04

'Sharuz has already contacted the council regarding dropping the kerb.

0:21:040:21:08

'He hopes his new tenants will be happy with front off-street parking

0:21:080:21:12

'and that he will retain the use of the garage.'

0:21:120:21:15

Is property something you've just decided to get into?

0:21:150:21:18

Yes, because I was thinking we could make some money out of the properties

0:21:180:21:23

and also keep them for retirement.

0:21:230:21:27

That's what we decided to do.

0:21:270:21:29

So tell me what you're going to do to really make this place look fabulous?

0:21:290:21:34

A new kitchen, new boiler and new wiring.

0:21:340:21:39

I think these two major things, when it's done,

0:21:390:21:43

just leave us for painting and decorating.

0:21:430:21:46

We're going to paint it inside and outside.

0:21:460:21:49

I think, when it's finished, I hope it will be nice.

0:21:490:21:52

-What sort of budget are you looking at, Sharuz?

-I think we will have to spend about £30,000.

-Yeah.

0:21:520:21:58

Absolutely. £30,000, and how long is it going to take you?

0:21:580:22:02

It's going to take two or three months.

0:22:020:22:04

Is there anything you're worried about, apart from the fact that you paid too much

0:22:040:22:08

and you've got to fork out six grand for seller's fees?

0:22:080:22:11

Is there anything else that you are worried about, having bought this?

0:22:110:22:15

Find the right people to do the job. Most of the jobs, I'm going to do.

0:22:150:22:19

The rest of them, I'm going to get a contractor.

0:22:190:22:22

-Good luck.

-Thanks very much.

-I can't wait to see what it turns out like.

0:22:220:22:25

-And whether or not you're lucky enough to keep that garage.

-Let's see!

0:22:250:22:29

This garage sealed the deal for Sharuz, although it's going to take him a while

0:22:300:22:34

to get over the shock of over-paying for this house on auction day.

0:22:340:22:38

But it's not all bad news. He'll have a steady stream of tenants racking up a 7% yield.

0:22:380:22:44

How's he going to turn this place around? Will he find builders?

0:22:440:22:48

Join me later in the programme and you can find out.

0:22:480:22:51

'Coming up, I try and look on the bright side in County Durham.'

0:22:520:22:56

Even in this state, there could be money in it.

0:22:560:22:59

'While in north London, Sharuz has found it hard to make a decision.'

0:23:020:23:06

In the kitchen, we done so much plans.

0:23:060:23:09

More than 20 people came to do the design.

0:23:090:23:12

'First, it's back to rural Cornwall to see if the teachers have learned any valuable lessons.'

0:23:140:23:18

We've done a few things but we haven't had a single solution.

0:23:180:23:22

'We return, now, to the Cornish hamlet of St Newlyn East,

0:23:260:23:29

'about ten minutes' drive from Newquay.

0:23:290:23:32

'This three-bedroom semi with stunning views

0:23:320:23:35

'was bought for £165,000 by Steve and his wife Mary.

0:23:350:23:40

'They are teachers currently living in Newquay.

0:23:400:23:43

'They were going to refurbish and make it a family home for themselves

0:23:430:23:47

'and their baby Solomon.

0:23:470:23:49

'It had the potential to become fabulous!'

0:23:490:23:51

So, what are the plans for it, then?

0:23:510:23:54

-First of all, downstairs, we're going to put a wood-burner and redecorate.

-Ooh, nice.

0:23:540:23:59

-Design a new kitchen.

-We're hoping to extend out.

0:23:590:24:02

That will give us, hopefully, four bedrooms. For the minute, it's got three small bedrooms.

0:24:020:24:07

We're going to get rid of the toilet,

0:24:070:24:09

make one of the small bedrooms into a really nice family bathroom.

0:24:090:24:13

'They'd set a budget of £18,000 to £20,000

0:24:130:24:17

'and were hoping to get the work completed in three to four months.

0:24:170:24:21

'It's now six months later and we've come back

0:24:210:24:24

'to see what Mary and Steve have achieved.

0:24:240:24:27

'Inside, the house has been transformed.

0:24:270:24:30

'The family moved in about four weeks ago.

0:24:340:24:37

'The living room has a lovely cottagey feel.

0:24:380:24:40

'The wood-burning stove looks an absolute treat.

0:24:400:24:44

'Those red units in the kitchen made you stop in your tracks.

0:24:460:24:50

'Now they're green for go.

0:24:500:24:52

'The downstairs bathroom has been converted into a utility and loo.

0:24:560:25:01

'Upstairs, the front bedroom is now this wonderful family bathroom.

0:25:020:25:07

'It gained extra space from the former loo,

0:25:070:25:10

'as did Mary and Steve's bedroom,

0:25:100:25:12

'which has this attractive exposed fireplace.'

0:25:120:25:16

This wasn't a doorway, originally.

0:25:160:25:19

The original doorway was here and there was no door on here.

0:25:210:25:25

There was a toilet in this corner. We've knocked this wall right out.

0:25:250:25:29

We made it into a nice big bedroom. I think it works really well.

0:25:290:25:33

We've got two decent bedrooms now that we can use.

0:25:330:25:36

We're really pleased with the space.

0:25:360:25:39

'On the other side of the chimney breast,

0:25:390:25:41

'the second bedroom is baby Solomon's.

0:25:410:25:44

'Apart from the plumbing, electrics and plastering,

0:25:450:25:47

'Mary and Steve have tackled a lot of work themselves.'

0:25:470:25:51

We both worked really hard on the house.

0:25:510:25:53

We've done everything we can. We've learnt to tile.

0:25:530:25:57

We've done the skirting, cut that to the right size.

0:25:570:26:00

Steve did a lot of work on the fireplace downstairs.

0:26:000:26:03

That took quite a few days

0:26:030:26:05

and also a lot of trailer trips of rubble to the tip!

0:26:050:26:09

A builder friend said if we kept opening it up,

0:26:090:26:12

we'd get to this brick archway, which we're really pleased with.

0:26:120:26:16

The floor, we completely sanded that down.

0:26:160:26:19

Found a bit of woodworm, so that needed some treatment.

0:26:190:26:22

I'm really pleased. It's a great place for Solomon to play.

0:26:220:26:25

Yeah, we're really pleased with it.

0:26:250:26:27

'It's lovely, but not the only source of heat.

0:26:270:26:29

'Central heating and new radiators have been installed,

0:26:290:26:33

'heated by this eco boiler installed outside.

0:26:330:26:36

'No work has been done to the outbuilding.

0:26:380:26:40

'They've just pushed the boat out INSIDE the house.

0:26:400:26:43

'But it hasn't all been plain sailing.'

0:26:430:26:46

Our main concern has been

0:26:480:26:50

when we removed the plaster from the chimney.

0:26:500:26:53

On both sides, there's the area of damp.

0:26:530:26:56

We've had various people look at it.

0:26:560:26:58

We've done a few things, but haven't had a single solution.

0:26:580:27:03

However, we do know from the smoke test that the chimney

0:27:030:27:06

on this side of the house comes from an old range in the kitchen.

0:27:060:27:11

So we're just going to have to give it time

0:27:110:27:13

to try and get the bricks to dry out.

0:27:130:27:16

'Work inside is almost complete.

0:27:170:27:20

'There are a couple of doors to hang and an airing cupboard to build.

0:27:200:27:24

'So, how much have they spent so far?

0:27:240:27:26

'Are they keeping within their £18,000 to £20,000 budget?'

0:27:260:27:31

I think we're probably coming in 19 and a half, 20,000.

0:27:310:27:34

Having done a lot of the work ourselves,

0:27:340:27:36

some good friends have helped us out with various skills and trades.

0:27:360:27:40

I'm fairly happy with what we've got for the money we've spent.

0:27:400:27:45

'That'll take their total investment to 185,000.

0:27:450:27:48

'What will two local property experts think of the refurbishment?

0:27:500:27:54

'First, the auctioneer who sold it.'

0:27:540:27:56

They've done a wonderful job to the finish of the property.

0:27:560:27:58

From top to bottom. The kitchen is to a reasonable standard.

0:27:580:28:02

The living room is to an extremely high standard.

0:28:020:28:05

Upstairs, I was pleased they've done away with the WC

0:28:050:28:07

and created two good sized bedrooms.

0:28:070:28:10

What stands out is the living room, opening up the fireplace

0:28:100:28:13

and exposing the brickwork.

0:28:130:28:15

It's made it a real feature of the property.

0:28:150:28:18

The extension plans sound fantastic.

0:28:180:28:20

If I was going to be living here it's really worth doing.

0:28:200:28:23

'What effect could an extension have on the rental income,

0:28:240:28:28

'if the house increased its bedrooms to four?'

0:28:280:28:31

On the rental market, you should achieve in the region of £675 per calendar month.

0:28:310:28:36

If the property was the four-bedroom variety,

0:28:360:28:38

you could expect in the region of £850 per calendar month.

0:28:380:28:41

Current rental, I would predict a rental income of £750 per calendar month.

0:28:410:28:46

As a four-bed, it's going to be around £900 per calendar month.

0:28:460:28:50

'Remaining as a two-bedroom property,

0:28:510:28:53

'those valuations would produce a yield of about 4.5%.

0:28:530:28:57

'But with four bedrooms, the yield rises to over 5.5%.'

0:28:570:29:02

It's not something we were looking to do.

0:29:040:29:06

We're not interested in renting it, but it's nice to know that that's an option and a very good price.

0:29:060:29:12

'How much is the house now worth in its current configuration?

0:29:120:29:16

'More than the £185,000 they've invested in here?'

0:29:160:29:20

In current market conditions, we'd value the property between £225,000 to £235,000.

0:29:210:29:27

Once completed, I would expect the property to fetch in the region of £220,000 to £230,000.

0:29:270:29:32

'So, a potential gross profit of £35,000 to £50,000

0:29:320:29:37

'before taxes and expenses.'

0:29:370:29:39

-That's fantastic.

-Yeah. Not unhappy with that at all.

0:29:400:29:43

That's really good news.

0:29:430:29:45

'And if they were to spend around £35,000 on an extension,

0:29:470:29:50

'taking them to four bedrooms, the experts reckon they could generate

0:29:500:29:54

'a gross profit of around £30,000 to £50,000.'

0:29:540:29:57

I suppose, again, if we were going to extend it,

0:29:590:30:02

it would be for us to enjoy it, wouldn't it?

0:30:020:30:04

-Yeah.

-But it's good to know that it would be adding value.

0:30:040:30:07

'But I suspect Steve and Mary are just delighted

0:30:070:30:10

'that their property homework has paid off

0:30:100:30:13

'and they've learnt one of the main lessons of buying a property that you want to make your home.'

0:30:130:30:18

Overall, we've really enjoyed the project.

0:30:180:30:20

It's been hard work at times, but it's an amazing experience to have.

0:30:200:30:25

It is hard work, but as long as you're prepared to make a few sacrifices, it's really worthwhile.

0:30:250:30:30

'I'm in the rural community of Ludworth, in County Durham,

0:30:340:30:38

'a village tucked amongst rolling hills and lush countryside

0:30:380:30:41

'in the north of England.

0:30:410:30:43

'The town has history, as the remains of Ludworth Tower,

0:30:430:30:46

'a mediaeval manor house show.

0:30:460:30:49

'Lovely though it is, I'd rather see a property that's not from the dark ages.'

0:30:490:30:54

Well, they say that beauty is in the eye of the beholder.

0:30:550:30:58

If the auction catalogue is anything to go by,

0:30:580:31:01

today's property is a real shocker!

0:31:010:31:04

Doesn't look too bad from the outside, but there are tell-tale signs.

0:31:040:31:08

See the black coming up from the window there? This property has been extensively fire-damaged.

0:31:080:31:14

Still, it had a guide price of just 25,000 quid.

0:31:140:31:18

So how...bad can it be?

0:31:180:31:21

'Aside from the devastating human and emotional toll of fires,

0:31:230:31:27

'the fire-damage can mean structural, electrical and plumbing issues.

0:31:270:31:31

'So this large rear garden and off-street parking out front

0:31:310:31:35

'might not be enough to make this a must-have for a portfolio.'

0:31:350:31:40

I've been in fire-damaged properties before...

0:31:470:31:50

..but I've never seen anything like this.

0:31:520:31:54

You know those instructional videos that fire crews give out,

0:31:540:32:00

that they show to children in schools as to what can happen?

0:32:000:32:04

It's just like one of those.

0:32:040:32:06

It's really, really eerie.

0:32:060:32:09

The singed, melted television.

0:32:090:32:12

The only thing that's moving is the pendulum of a clock on the wall.

0:32:120:32:16

Books, ornaments...

0:32:160:32:19

I'm speechless, really.

0:32:210:32:23

'Thankfully, no-one was seriously injured in this fire.

0:32:320:32:35

'While house fires are statistically fewer than they used to be,

0:32:350:32:39

'each one has a terrible personal cost.

0:32:390:32:42

'Causes can range from chip pans, electrical faults, candles,

0:32:420:32:46

'Christmas lights - you name it.

0:32:460:32:49

'Whatever the cause, the effects are plain to see.

0:32:490:32:52

'Total devastation.

0:32:520:32:54

'The destruction continues throughout.

0:32:540:32:56

'Upstairs, the three bedrooms are lurking somewhere

0:32:560:33:00

'behind each of these doors.

0:33:000:33:02

'The bathroom is just as bad as the rest of the house.'

0:33:060:33:09

Let's think about what this place COULD be for a second.

0:33:130:33:17

We know it's got three bedrooms and an upstairs bathroom, so that's a good start.

0:33:170:33:21

If you could get this for around the guide price of £25,000

0:33:210:33:25

and allowed yourself a fairly generous budget.

0:33:250:33:27

What do you reckon? 20,000? 25,000? Let's say 25,000 to sort it out.

0:33:270:33:32

New windows, new boiler, new electrics, sort out the flooring, repaint, replaster.

0:33:320:33:37

25 grand. Bit of roof work. That'll probably do it.

0:33:370:33:40

£50,000 is your total investment.

0:33:400:33:42

Similar properties round here are selling for 60,000 to 70,000.

0:33:420:33:46

So, even in this state, there could be money in it.

0:33:460:33:50

'It's time to meet a local estate agent

0:33:560:33:58

'to find out what she thinks of this place that was guided at £25,000.'

0:33:580:34:04

This property is in the worst condition I've ever seen a property

0:34:070:34:11

in the whole time I've been an estate agent.

0:34:110:34:13

The property itself would have a good size lounge,

0:34:130:34:16

a decent size kitchen-dining room, three good size bedrooms

0:34:160:34:20

and a family bathroom.

0:34:200:34:22

One thing that would make this property stand out is its garden.

0:34:220:34:25

It has a very large garden and lovely views over open countryside.

0:34:250:34:29

Seeing what work needs doing to the property,

0:34:290:34:32

you can see why the property would be going for £25,000.

0:34:320:34:36

'Looking beyond the blackened building,

0:34:360:34:38

'once refurbished and reclaimed, what might this house be worth?'

0:34:380:34:43

The resale price for this property would be approximately £75,000.

0:34:440:34:49

'What could it achieve if it was rented out?'

0:34:490:34:52

Once renovated, this property would achieve approximately £375 per calendar month.

0:34:530:34:58

Huh! Well, a cautionary tale indeed, this one.

0:35:010:35:05

But switching to the thing of is it worth buying as a property investment?

0:35:050:35:09

You'd need to have it checked out by a specialist,

0:35:090:35:12

to make sure there wasn't any major structural damage as a result of the fire.

0:35:120:35:16

But it's in a good area. Once it's done up, it would be a great place to live.

0:35:160:35:21

So if you can see through the mess, it's worth going for.

0:35:210:35:24

Not one for the faint-hearted. Let's see what happened at the auction.

0:35:240:35:27

We move straight on to our next available lot.

0:35:270:35:31

Guide price is £25,000.

0:35:310:35:33

I'll either start here on the phone

0:35:330:35:35

or in the room, ladies and gentlemen.

0:35:350:35:37

18,000? I'll start at 15 if it helps.

0:35:370:35:41

15.

0:35:420:35:43

At £15,000. You're going to let him have it? £16,000...

0:35:430:35:48

'Although this was the last lot of the day,

0:35:480:35:50

'bidding was fierce between a telephone bid

0:35:500:35:53

'and the mystery man at the back of the room behind a pillar.

0:35:530:35:57

'We pick up the auction again at £20,000.'

0:35:570:36:00

20, sir? £20,000.

0:36:000:36:03

I'll go 500, Adam. 20,500.

0:36:040:36:07

21, sir?

0:36:070:36:10

Yours at the moment. Right at the back of the room. 21. 500.

0:36:100:36:13

22.

0:36:130:36:15

£23,000. 500.

0:36:150:36:17

24. And a half.

0:36:170:36:19

25, sir? Taken 25.

0:36:190:36:21

£25,000.

0:36:210:36:23

In the room. Yours at £25,000. Anybody else coming in?

0:36:230:36:27

£25,000. Standing at the back of the room.

0:36:270:36:30

Out on the phone? At £25,000, it's your bid, sir.

0:36:300:36:33

Congratulations!

0:36:340:36:35

'The successful bid of £25,000, bang on the guide price,

0:36:350:36:39

'was paid by banker turned property developer, Campbell.'

0:36:390:36:43

# Open your account with me

0:36:430:36:45

# Cos I'll give you security, my love

0:36:450:36:48

# Take that to the bank... #

0:36:480:36:50

'Bored with doing up flats, Campbell had travelled from home in Glasgow

0:36:500:36:54

'in search of a different kind of property.

0:36:540:36:57

'This is his first auction purchase.'

0:36:570:36:59

-Campbell, good to meet you.

-Pleased to meet you.

0:36:590:37:03

I'm not sure whether to say congratulations or not.

0:37:030:37:05

-You're obviously a man who likes a challenge!

-Yes, I think this'll be an interesting project.

0:37:050:37:10

-Tell me why you wanted to buy the house.

-The first attractive thing about it was the price.

0:37:100:37:17

And I think, having researched it a bit,

0:37:170:37:20

there's a profit to be made and obviously, that's why I'm taking it on.

0:37:200:37:25

The auction catalogue said that, because of the state,

0:37:250:37:29

you couldn't do internal viewings, so you didn't get to see it inside.

0:37:290:37:34

No. I could see in slightly through the front window,

0:37:340:37:37

but even that, there was smoke on the window.

0:37:370:37:40

So that was a bit of a mystery.

0:37:400:37:42

-When was the first time you saw it inside?

-Earlier today.

0:37:420:37:46

Oh, wow! So, what do you think?

0:37:460:37:49

Um... There's good points and there's bad points.

0:37:500:37:53

There's possibly less fire-damage than I thought

0:37:530:37:58

and less water-damage than I thought.

0:37:580:38:00

My concern is because there's a hole in the roof,

0:38:000:38:04

because of that, the water would be channelled down inside.

0:38:040:38:08

But I think there's actually so many clothes and things in that room,

0:38:080:38:12

it'll have soaked up a lot of the water.

0:38:120:38:15

Hopefully, the structure is better.

0:38:150:38:18

How ironic! The actual fact that there's so much stuff in there

0:38:180:38:22

could have helped preserve the fabric of the building?

0:38:220:38:25

I'm hoping that's the case, but I won't know until I start removing the contents.

0:38:250:38:31

That was the good bit, then. What was the bad bit?

0:38:310:38:33

Just the huge amount of stuff that's there.

0:38:330:38:36

I was hoping one skip would do it. That's obviously optimistic.

0:38:360:38:39

So I'll need to put that back in my budget.

0:38:390:38:42

# ..Take that to the bank! #

0:38:420:38:44

'This is a two-skip house if ever I saw one.

0:38:440:38:48

'The worry for Campbell is that, although the contents absorbed a lot of the water,

0:38:480:38:52

'they could also be covering up a multitude of structural sins.'

0:38:520:38:56

Talk me through what you're going to do, where you're going to start.

0:38:560:39:00

The first thing is going to be clearing the house.

0:39:000:39:04

I've got a friend coming down with me in a couple of weeks for a couple of days. We'll get skips organised.

0:39:040:39:10

After that, my main priority

0:39:100:39:12

is to get the bathroom working and to get a shower working.

0:39:120:39:16

Once I've got those in, then I've got my caravan for the evening

0:39:160:39:20

and to keep my stuff clean and tidy.

0:39:200:39:22

And I've got the shower for the end of the day to get washed up.

0:39:220:39:26

That's before the roof!

0:39:260:39:28

You can leave the roof as it is and you've got a natural shower!

0:39:280:39:31

When we're down for those couple of days, I'll carry out some basic roof repairs.

0:39:310:39:37

This is your first project like this?

0:39:370:39:39

It's my first stand-alone development

0:39:390:39:42

but I've done a lot of development

0:39:420:39:44

on the flats I've owned in Glasgow over the years.

0:39:440:39:48

Invariably, I've gutted them.

0:39:480:39:49

This might be frightening, but it's a different type of project.

0:39:490:39:53

I'm quite excited at the prospect.

0:39:530:39:57

What damage could have been done to the structure and how have you checked that out?

0:39:570:40:02

Effectively, I can't check it out until I start ripping up floorboards and taking down ceilings.

0:40:020:40:09

The joists could have been fire-damaged

0:40:090:40:12

or subsequently water-damaged cos the roof's been damaged for a year.

0:40:120:40:17

I won't know that until I get in,

0:40:170:40:19

but I think there's enough leeway in my figures

0:40:190:40:22

that if there is some structural work, then it can be covered.

0:40:220:40:27

Let's talk through your budget then. What's the budget for the work?

0:40:270:40:31

17,000 is the figure I've got in mind.

0:40:310:40:34

-Right.

-It's mainly materials. I will be doing most of the work myself.

0:40:340:40:39

What's the plan? What are you going to do with it once it's done?

0:40:390:40:43

Once it's finished, which I'm hoping will be spring next year...

0:40:430:40:46

So about, what? Six, nine months?

0:40:460:40:50

Yeah. I'm not putting myself under any time pressure.

0:40:500:40:54

In fact, I'm not doing anything for the next couple of months

0:40:540:40:57

cos I've got work to do in my own flat.

0:40:570:41:00

But spring next year, have it finished.

0:41:000:41:03

Either to sell or I would consider renting it out.

0:41:030:41:07

What do you think your biggest challenge is?

0:41:070:41:09

I think the whole project, generally, is a challenge.

0:41:090:41:12

It's just a case of breaking it down into stages, taking on the stages,

0:41:120:41:17

getting them finished and being convinced that I'm making progress.

0:41:170:41:22

-For the majority, is it just going to be you?

-Yes.

0:41:220:41:25

'This is a huge project to take on by yourself.

0:41:290:41:32

'Plus, Campbell has a 150-mile commute

0:41:320:41:35

'between Glasgow and Ludworth.

0:41:350:41:37

'He'll be leaving behind his wife and their 15-month-old daughter.

0:41:370:41:41

'But living in a caravan should make sure he knuckles down to the hard graft here.'

0:41:410:41:47

What do the family think about what you've bought or haven't they, presumably, seen it yet?

0:41:470:41:51

My wife hasn't seen it yet. She's seen a couple of photos.

0:41:510:41:57

I'm not sure when she's coming down to visit!

0:41:570:42:00

-Get it cleaned up a bit first!

-BOTH LAUGH

0:42:000:42:03

But she's very supportive.

0:42:030:42:06

She knows it's a project that I'm interested in taking on,

0:42:060:42:09

-so she's very supportive.

-Fantastic.

0:42:090:42:12

Well, congratulations and the very best of luck.

0:42:120:42:16

-Really look forward to seeing how you get on.

-Thanks very much.

0:42:160:42:19

Be honest. Would YOU want to take on a project like this?

0:42:200:42:24

There may well be money in it, but there are so many unknowns.

0:42:240:42:28

It's not until you start clearing this place out, you'll know if there's been structural damage,

0:42:280:42:33

quite how much work and, therefore, money, there is to spend.

0:42:330:42:38

Campbell's got some challenges ahead.

0:42:380:42:40

Find out how he gets on later in the show.

0:42:400:42:44

Have our fearless developers emerged victorious?

0:42:470:42:50

Or have they floundered in the shallow end?

0:42:500:42:53

Let's go back and find out.

0:42:530:42:55

'We're back in Edmonton, in the north London borough of Enfield,

0:42:570:43:00

'to see how first-time property developer Sharuz got on with this three-bedroom semi.

0:43:000:43:05

'The place was tired and dated,

0:43:050:43:08

'but was ideally located for the rental market,

0:43:080:43:11

'since it was almost within sight of a huge local hospital.'

0:43:110:43:15

# Doctor, my eyes!

0:43:150:43:18

# Tell me what is wrong... #

0:43:180:43:21

'The house itself looked like a suburban semi,

0:43:210:43:25

'but inside it felt more like a mini gothic mansion

0:43:250:43:28

'with panelled staircase and carved wood.

0:43:280:43:30

'Previous owners had knocked through the sitting room to the kitchen.

0:43:300:43:34

'The open-plan layout floods the downstairs with light, which is good.

0:43:340:43:38

'I didn't love upstairs quite so much.

0:43:380:43:40

'It would be fair to describe it as "patchy".

0:43:400:43:44

'At least the work had been started.

0:43:440:43:46

'Outside, there was a ramshackle shed and a spacious garage,

0:43:460:43:51

'which Sharuz had his eye on for himself.'

0:43:510:43:54

Why did this house appeal to you in the first place?

0:43:540:43:57

Because of garage, you know. I love the garage.

0:43:570:44:00

I was looking for the house with the garage.

0:44:000:44:03

This one was a big one and I could park my van, my car.

0:44:030:44:09

'Sharuz bought the property to rent out,

0:44:090:44:11

'so he was hoping to add off-street parking at the front

0:44:110:44:15

'to satisfy the needs of his future tenants.

0:44:150:44:17

'He'd got carried away at auction and paid more than he intended.

0:44:200:44:24

'He bought it for 236,000

0:44:240:44:27

'and planned to spend 30,000 on the renovations.

0:44:270:44:30

'He also wanted to have tenants in within about three months.

0:44:300:44:35

'We've come back just over four months later,

0:44:360:44:39

'to see if Sharuz's wildest dreams have come true

0:44:390:44:42

'and he's managed to keep his garage AND find tenants.

0:44:420:44:46

'In those mere four months, Sharuz has transformed this house

0:44:590:45:03

'from dilapidated to delightful.'

0:45:030:45:05

We've done a lot of work. I was not expecting that much work.

0:45:070:45:12

Also, the one thing is changing your mind as well.

0:45:120:45:15

Sometimes, when you do something, "This is not right."

0:45:150:45:18

You do it again because you want to finish it nice.

0:45:180:45:22

# A change of heart can take you unaware... #

0:45:220:45:28

'Changing your plans can be costly and time-consuming,

0:45:280:45:32

'but it looks like these were all changes for the better.'

0:45:320:45:36

# ..A change of heart. #

0:45:360:45:39

Oh, yes. In the kitchen we done so much plan.

0:45:390:45:43

More than 20 people they came to design it.

0:45:430:45:47

Eventually, we just tried to go for the cheapest possible.

0:45:470:45:50

It's come nice.

0:45:500:45:52

'Upstairs, the two single bedrooms have been finished

0:45:520:45:55

'and painted in neutral light colours.

0:45:550:45:58

'The master double bedroom is unrecognisable

0:46:010:46:05

'from the dusty shell we first saw.

0:46:050:46:08

'The old bathroom had an over-sized and overly fancy bath.

0:46:110:46:14

'But this, too, has been ripped out and replaced.

0:46:140:46:18

'Out back, the collapsing old shed

0:46:230:46:26

'has been replaced by a brand new extension,

0:46:260:46:28

'which has become a cosy extra living space.

0:46:280:46:31

'When Sharuz bought this place,

0:46:310:46:33

'he was much more interested in the garage than the house itself.'

0:46:330:46:38

The garage fooled me to buy the property, otherwise I wouldn't buy it.

0:46:380:46:43

But I haven't done nothing for the garage

0:46:430:46:46

because I got the front driveway which is more handy.

0:46:460:46:51

Just going to use it as a storage.

0:46:510:46:53

'Sharuz has also had a change of heart about another aspect,

0:46:580:47:02

'although maybe it's more accurate to say his wife Maria changed it for him.'

0:47:020:47:07

My wife says she wants to move in here and after we changed our mind.

0:47:070:47:11

We done the job to live here, not for the rent.

0:47:110:47:15

'Since Sharuz and Maria were refurbishing a home,

0:47:160:47:19

'not an investment property,

0:47:190:47:21

'they didn't scrimp on the quality of the fixtures and fittings.'

0:47:210:47:25

The budget was about 30,000, but after that we decided we're going to live in here

0:47:250:47:31

and actually completely changed our plan.

0:47:310:47:34

We tried to spend as much on good quality stuff in the house.

0:47:340:47:38

'Sharuz already thought he paid too much for the house,

0:47:410:47:44

'£236,000.

0:47:440:47:47

'Along with the fee of £6,000 he had to pay the vendor,

0:47:470:47:51

'plus the £46,000 he spent on renovations.

0:47:510:47:54

'That brings his investment to £288,000.

0:47:540:47:58

'So, do two local estate agents reckon it was money well spent?'

0:48:030:48:08

I like the finish of the property.

0:48:080:48:10

No bold colours. I like the dark flooring, the contrast.

0:48:100:48:15

Bathrooms and kitchens always sell well.

0:48:150:48:17

I think it's finished to a nice standard.

0:48:170:48:19

This property would appeal to a large family.

0:48:190:48:22

You've got parking at the front of the house, large garage at the back,

0:48:220:48:26

two receptions and a spacious kitchen.

0:48:260:48:28

'The decoration and refurbishment certainly meet with their approval,

0:48:280:48:32

'but will that translate into value added onto the house?

0:48:320:48:36

'It's time to find out what the experts think it's now worth.'

0:48:360:48:40

If I put the property on the market for sale,

0:48:400:48:43

I'd expect it to achieve in the region of £290,000 to £300,000.

0:48:430:48:46

Looking to achieve in the region of between £290,000 and £300,000.

0:48:460:48:50

'Based on those figures, that would mean a profit of between £2,000 and £12,000,

0:48:510:48:56

'minus expenses and legal fees - so not a loss, after all.'

0:48:560:49:00

Not bad. I'm pleased, you know.

0:49:010:49:04

We are pleased we have the house, anyway.

0:49:040:49:06

'Initially, Sharuz had planned to let this house out.

0:49:060:49:10

'According to the estate agents,

0:49:100:49:12

'this high-standard finish would get him a rent

0:49:120:49:15

'of between £1,400 and £1,500 per calendar month.'

0:49:150:49:19

We're happy. Gonna keep it.

0:49:190:49:21

'We're back in the countryside near Durham, in Ludworth,

0:49:240:49:28

'to see how ex-bank worker Campbell got on with his burnt-out house.

0:49:280:49:32

'This was the first auction property he'd ever bought

0:49:320:49:35

'and, boy, was it a corker?!

0:49:350:49:38

'It didn't look too bad from the outside,

0:49:380:49:40

'but behind the front door, it was eerie and surreal.

0:49:400:49:45

'Everything - and I do mean everything - had melted and burnt

0:49:450:49:48

'or been smoke-damaged.'

0:49:480:49:51

Because of the state, you couldn't do internal viewings,

0:49:510:49:54

-so you didn't get to see it inside.

-No.

0:49:540:49:57

I could see in slightly through the front window,

0:49:570:50:00

but even that, there was smoke on the window.

0:50:000:50:02

The inside was a bit of a mystery.

0:50:020:50:05

'But Campbell didn't seem fazed when he saw the amount of clearing-up

0:50:050:50:09

'he had to do before he'd even be able to find out what structural shape the property was in.

0:50:090:50:14

'But it didn't look good.

0:50:140:50:17

'Upstairs, it was hard even to pick out the three bedrooms.

0:50:170:50:22

'While downstairs, the kitchen and sitting room did bear a faint resemblance to their past use.

0:50:220:50:27

'There was clearly a massive amount of renovation to do here.'

0:50:270:50:32

What do you think your biggest challenge is going to be?

0:50:320:50:34

I think the whole project, generally, is a challenge.

0:50:340:50:37

It's just a case of breaking it down into stages

0:50:370:50:40

and being convinced that I'm making progress.

0:50:400:50:43

'Campbell bought the three-bedroom semi for £25,000.

0:50:440:50:49

'He planned to do most of the work himself, armed with a £17,000 budget for materials.

0:50:490:50:54

'He was pretty laid-back about the time scale,

0:50:540:50:57

'but thought it would take six to nine months to get the place ready.

0:50:570:51:02

'We've come back just over three YEARS later,

0:51:020:51:06

'to see if Campbell has helped this property come back to life.'

0:51:060:51:10

# Back to life Back to the present time

0:51:100:51:15

# Back from a fantasy, yes

0:51:150:51:19

# Tell me now Take the initiative

0:51:200:51:24

# I'll leave it in your hands until you're ready

0:51:240:51:31

# However do you want me However do you need me... #

0:51:310:51:35

'Well, as you can see, it's not yet finished, but it's well on the way.'

0:51:350:51:39

It's been over three years I've had it now.

0:51:390:51:42

So obviously, it should be finished.

0:51:420:51:44

When I first bought it, I was doing another project.

0:51:440:51:47

It took me almost a year to get that finished.

0:51:470:51:50

So when I first bought the property, I wasn't here for a year,

0:51:500:51:53

after getting it wind and water-tight.

0:51:530:51:56

Then, unfortunately, my mother took ill after that.

0:51:560:51:59

I'm her main carer, so I'm spending a lot of time at my mother's,

0:51:590:52:04

looking after her, which has left me very little time to get down here

0:52:040:52:08

and get the project progressed.

0:52:080:52:11

'Being a full-time carer as well as doing up such a demanding house,

0:52:110:52:16

'meant that it quite understandably took second place to his mother's needs.

0:52:160:52:21

'But this old property had some not-so-pleasant surprises in store.'

0:52:240:52:30

A major problem that was nothing to do with the fire was damp.

0:52:300:52:35

I had re-laid the timbers in this living room,

0:52:350:52:39

re-laid all the joists, replaced a lot of them.

0:52:390:52:42

As I was laying the floorboards during very heavy rain,

0:52:420:52:47

I noticed water coming up through the sub-floor area.

0:52:470:52:51

It's obviously been like that for a number of years.

0:52:510:52:55

I then had to seal the sub-floor area to prevent that.

0:52:550:52:59

That was a major task that was absolutely nothing to do with the fire-damage to the property.

0:52:590:53:05

'Upstairs, we can actually see the bedrooms for the first time.

0:53:050:53:11

'There's a double bedroom.

0:53:110:53:14

'Oh, look! Another double bedroom!

0:53:170:53:20

'But I'm afraid that third bedroom will have to remain a mystery

0:53:200:53:24

'as it's still being used as a store room.

0:53:240:53:27

'Upstairs is virtually unrecognisable,

0:53:270:53:30

'particularly the bathroom.'

0:53:300:53:32

I've been doing most of the work myself.

0:53:320:53:35

I don't think my wife fully appreciates

0:53:350:53:39

the amount of work I'm having to do.

0:53:390:53:42

And the fact I'm living on site,

0:53:420:53:44

it's not a particularly pleasant experience.

0:53:440:53:47

She sees me disappear for a few days and she thinks I'm away on my holidays or something!

0:53:470:53:52

'I'm pretty sure Campbell's wife will realise he's not been skiving

0:53:520:53:56

'when she sees the transformation in this house.

0:53:560:53:59

'But all the travelling from Glasgow plus demands from family and home

0:53:590:54:03

'have made it very tough.'

0:54:030:54:05

It is, actually, quite difficult.

0:54:050:54:08

I now realise, it's almost a three-hour journey to get down here,

0:54:080:54:13

so any visit, that's six hours out my working day just travelling.

0:54:130:54:18

I've got a four-year-old daughter, so I'm not seeing as much of her as I would like to.

0:54:180:54:23

It's proving harder than I thought it would, initially.

0:54:230:54:26

'Still, at least Campbell was able to avoid the caravan life

0:54:270:54:30

'by getting the house water-tight, and camping inside while the work progressed.

0:54:300:54:35

'So, as the end of the project looms into view, how's the budget holding up?'

0:54:350:54:41

So far, I think I've spent about £12,000.

0:54:410:54:46

It'll be another £2,500, maybe £3,000 for me to finish it.

0:54:460:54:49

Because I've owned the property so long,

0:54:490:54:52

we're now into council tax payments and such like.

0:54:520:54:55

'Campbell bought it for £25,000

0:54:550:54:58

'and expects to spend a total of £15,000 to complete the refurbishment,

0:54:580:55:03

'bringing his total investment to £40,000.

0:55:030:55:06

'It's time to find out what two local estate agents think

0:55:060:55:09

'of this reclaimed house.'

0:55:090:55:11

Given the condition of the property when the owner bought it,

0:55:110:55:15

he's certainly making good strides towards making the property good.

0:55:150:55:18

Unfortunately, it is some way off.

0:55:180:55:20

The work he has done so far looks to be of a good standard.

0:55:200:55:23

The property should be really nice.

0:55:230:55:25

Once finished internally, I'd advise the owner

0:55:250:55:28

to spend time doing some work outside the property -

0:55:280:55:31

the garden and the off-street parking.

0:55:310:55:33

These will both help the property when it comes to selling.

0:55:330:55:37

'What do they think it might sell for when Campbell finishes the work?'

0:55:370:55:41

When the refurbishment work is completed,

0:55:410:55:43

I would anticipate an asking price in the region of £65,000.

0:55:430:55:47

Once the property's completed, I'd advise a sale price of £65,000.

0:55:470:55:52

'That would mean a profit of 25,000 before costs and expenses.'

0:55:530:55:58

I'm very happy with that.

0:55:580:56:00

The fact that I bought it at such a low figure,

0:56:000:56:03

there was always going to be a profit there.

0:56:030:56:06

'And what could this place attract on the rental market?'

0:56:060:56:10

I anticipate a monthly rental income of around £350 per calendar month.

0:56:100:56:16

I'd advise a rental price for the property of £400 a calendar month.

0:56:160:56:20

Yes, they're quite healthy figures.

0:56:200:56:23

Once I've finished the house, which hopefully won't take too much longer,

0:56:230:56:27

I can make a decision as to whether I want to rent out or try and sell.

0:56:270:56:32

'I'm guessing Campbell's not rushing back to an auction to buy his next property. Or is he?'

0:56:320:56:39

I'm looking forward to some quality time with my family.

0:56:390:56:42

Perhaps we'll get away on a holiday and spend some good time together.

0:56:420:56:47

Not enough for you? Well, there's plenty more.

0:56:490:56:52

Yes, make sure you join us next time for more Homes Under The Hammer.

0:56:520:56:56

-See you then.

-Goodbye.

-Goodbye.

0:56:560:56:58

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0:56:580:57:00

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0:57:000:57:02

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