0:00:02 > 0:00:03Hello, Lucy I have witnessed
0:00:03 > 0:00:06the ups and the downs of the property market.
0:00:06 > 0:00:08Whether you're looking for a property as an investment or
0:00:08 > 0:00:11a home, you want to see its value rise, not fall.
0:00:11 > 0:00:14Yes, so it's important you do your research,
0:00:14 > 0:00:17and maybe grab yourself a bargain by visiting the auctions.
0:00:43 > 0:00:47Well, we've all read about the ever-changing property market,
0:00:47 > 0:00:49and the delays when some properties are sold.
0:00:49 > 0:00:52But buying at auction is one of the simplest processes.
0:00:52 > 0:00:55Your hand goes up, the hammer goes down, and you've bought it.
0:00:55 > 0:00:58And that's what happened to the three properties on today's show.
0:01:00 > 0:01:02In Cumbria, I find a beach bungalow that makes me
0:01:02 > 0:01:05want to wax rather lyrical.
0:01:05 > 0:01:08A rural, tranquil retreat overlooking the Irish Sea.
0:01:10 > 0:01:14I explore this Surrey property's potential from every angle.
0:01:14 > 0:01:18How do you add space to a property without extending it?
0:01:19 > 0:01:23And the garden of this house in Stoke-on-Trent may just be
0:01:23 > 0:01:24the place for a footie fan.
0:01:24 > 0:01:27Absolutely huge, and big enough for a football pitch?
0:01:27 > 0:01:29Well, perhaps, a small one.
0:01:31 > 0:01:34All these properties have been sold at auction, and we'll find out
0:01:34 > 0:01:36who bought them and what they paid for them
0:01:36 > 0:01:38when they went under the hammer.
0:01:38 > 0:01:39It's yours. Well done.
0:01:49 > 0:01:55We are so lucky in the British Isles that we have so much coastline
0:01:55 > 0:01:58and beautiful beaches such as this one,
0:01:58 > 0:02:03South Braystones in Cumbria, between Whitehaven and Sellafield.
0:02:03 > 0:02:05It really is a lovely spot.
0:02:05 > 0:02:09A rural and tranquil retreat overlooking the Irish Sea.
0:02:11 > 0:02:14Those stunning stretches of beach really do give you
0:02:14 > 0:02:16a wonderful sense of calm and quiet.
0:02:19 > 0:02:21There are a couple of caravan sites and some unique
0:02:21 > 0:02:25and very individual dwellings along the beachfront.
0:02:25 > 0:02:27Some of them were originally built for the navvies
0:02:27 > 0:02:29who built the railway.
0:02:29 > 0:02:30The nearest village is a few miles away,
0:02:30 > 0:02:34so you don't have any local amenities on your doorstep.
0:02:34 > 0:02:37There is a railway station here, so you're not completely cut off,
0:02:37 > 0:02:41but it really does feel like a hideaway, well off the beaten track.
0:02:45 > 0:02:51And what a fantastic place to sit and watch the sun go down.
0:02:51 > 0:02:54A house on the beach.
0:02:54 > 0:02:58I mean, literally, a stone's throw from the beach.
0:02:58 > 0:03:01This is it.
0:03:01 > 0:03:03Yes, guided at £30,000 plus,
0:03:03 > 0:03:06you too could have your very own beach shack.
0:03:06 > 0:03:08# When you're through swimming
0:03:08 > 0:03:11# I'll dry your back
0:03:11 > 0:03:14# Come and relax, girl in my little beach shack
0:03:14 > 0:03:17# What are you saying now... #
0:03:17 > 0:03:22Expectations weren't very high, um, and...
0:03:25 > 0:03:26Well, you know what,
0:03:26 > 0:03:28it's got lots of character, I'll say that for it.
0:03:28 > 0:03:33A big, central room here, lovely to see the little stove.
0:03:33 > 0:03:35That is a delight, actually.
0:03:35 > 0:03:37Views out that way, roaring fire that way,
0:03:37 > 0:03:38doesn't get much better.
0:03:38 > 0:03:41You've got a little bedroom there, bathroom there,
0:03:41 > 0:03:44a second bedroom here.
0:03:44 > 0:03:49It's got that feeling of homemade about it with the wooden floors
0:03:49 > 0:03:52and everything. A few issues here and there.
0:03:52 > 0:03:55The kitchen, it fits in perfectly.
0:03:55 > 0:03:57It's never going to be a show home, is it?
0:03:57 > 0:04:01But what it is is extraordinarily characterful and,
0:04:01 > 0:04:04believe it or not, I love it.
0:04:04 > 0:04:08Yes, if you look at this less as a full-time home and more of
0:04:08 > 0:04:12a weekend retreat, then you realise what a great place it could be.
0:04:14 > 0:04:17The stove in the kitchen is not only used for cooking,
0:04:17 > 0:04:19but also heats the house.
0:04:20 > 0:04:23Electricity is provided by a generator in the garage,
0:04:23 > 0:04:27and there's mains water and a septic tank.
0:04:27 > 0:04:30The previous occupier is still in the process of moving out,
0:04:30 > 0:04:35but you can see how it could be a lovely home from home.
0:04:35 > 0:04:37So, we absolutely love the charm.
0:04:37 > 0:04:40We do want to be fairly confident that the property itself
0:04:40 > 0:04:42is actually fairly solid.
0:04:42 > 0:04:43On a day like this, it's not too bad,
0:04:43 > 0:04:45but in the middle of the winter,
0:04:45 > 0:04:47I imagine this bit of coast gets a bit of a battering.
0:04:47 > 0:04:50It's certainly non-standard construction,
0:04:50 > 0:04:53so if you're thinking about getting a mortgage on this place, forget it.
0:04:53 > 0:04:58OK? The roof, again, it's not what you'd would ideally like,
0:04:58 > 0:05:00but get a builder to check that out
0:05:00 > 0:05:03and see if it's at least watertight.
0:05:03 > 0:05:05I would want to spend a bit of time and effort
0:05:05 > 0:05:07out here sorting out this sort of front area.
0:05:07 > 0:05:10That could be improved quite well.
0:05:10 > 0:05:15But what you can't take away from this place is the location.
0:05:15 > 0:05:18Because you walk out the door, you sit on your seat,
0:05:18 > 0:05:23have your cup of coffee or tea, and you look at that view,
0:05:23 > 0:05:26and you go, "Yes!"
0:05:26 > 0:05:29# I'm sitting on the dock of the bay
0:05:29 > 0:05:34# Watching the tide roll away
0:05:35 > 0:05:38# Just sitting on the dock of the bay wasting time. #
0:05:38 > 0:05:40So it is a great location,
0:05:40 > 0:05:45and fabulous views as far as the front of the property is concerned.
0:05:45 > 0:05:48However, things aren't quite so appealing at the back.
0:05:48 > 0:05:54Well, just behind the property there's good and bad news.
0:05:54 > 0:05:59Basically, this is the railway line that links Barrow and Carlisle.
0:05:59 > 0:06:01The trains don't come along that frequently.
0:06:05 > 0:06:07And when they do, they're not exactly THAT noisy.
0:06:07 > 0:06:11The bad news is that the land itself is owned by Network Rail.
0:06:11 > 0:06:15I say bad news, because even if you do own this beach bungalow,
0:06:15 > 0:06:17the landowner, Network Rail, have the power
0:06:17 > 0:06:22to ask you to vacate with just three months' notice.
0:06:22 > 0:06:23And, not only that,
0:06:23 > 0:06:26any prospective buyer has to make an application
0:06:26 > 0:06:28to continue the lease.
0:06:28 > 0:06:29Should that application fail,
0:06:29 > 0:06:32the sale of the property would fall through.
0:06:33 > 0:06:35# I've got the power... #
0:06:37 > 0:06:40And power of another kind might also be a factor for some would-be
0:06:40 > 0:06:45purchasers, as Sellafield nuclear power station is just a few
0:06:45 > 0:06:47hundred yards down the beach.
0:06:47 > 0:06:49# ..I've got the power... #
0:06:49 > 0:06:53With all these factors, this is one to consider carefully.
0:06:53 > 0:06:56I'm wondering about that power of approval of the purchaser,
0:06:56 > 0:06:59held by the landowner in this case.
0:06:59 > 0:07:02Where would that leave a buyer at auction,
0:07:02 > 0:07:04where transactions are normally unconditional
0:07:04 > 0:07:06and completion normally takes place
0:07:06 > 0:07:08within a month of the hammer falling?
0:07:08 > 0:07:12We asked the man who wielded the gavel on this sale to explain.
0:07:12 > 0:07:15The method of sale is going to be slightly different with this
0:07:15 > 0:07:17one at auction, in that
0:07:17 > 0:07:21it's going to be offered not unconditionally.
0:07:21 > 0:07:23But it will have to be offered conditional
0:07:23 > 0:07:26upon a Network Rail receiving an application
0:07:26 > 0:07:29and passing that application for a prospective buyer.
0:07:29 > 0:07:33So there will be a period allowed for that application process.
0:07:33 > 0:07:36Should the application process fail,
0:07:36 > 0:07:41and Network Rail refuse the application, then the sale is off.
0:07:41 > 0:07:45The buyer gets his deposit back, and the vendor will probably
0:07:45 > 0:07:49decide whether it will be re-offered at the next auction.
0:07:49 > 0:07:51That's some reassurance, anyway.
0:07:51 > 0:07:53The guide price was £30,000 plus.
0:07:53 > 0:07:58So, what are the potential returns for this beach bungalow?
0:07:58 > 0:08:01If this property was exposed to the sales market after you
0:08:01 > 0:08:04refurbished it, then the property would probably achieve
0:08:04 > 0:08:06a figure in the region of £40,000.
0:08:07 > 0:08:10The auctioneer also believes it has limited rental potential.
0:08:10 > 0:08:14It's not in an area traditionally associated with holiday lets,
0:08:14 > 0:08:16so perhaps this is one that investors
0:08:16 > 0:08:18wouldn't be fighting over.
0:08:18 > 0:08:21But as a beach bolt-hole, I still find it pretty attractive.
0:08:24 > 0:08:26Well, there are clearly problems with this place,
0:08:26 > 0:08:29and no, it's not the building itself,
0:08:29 > 0:08:32or the roof, or the floor, it's that whole thing with the lease.
0:08:32 > 0:08:35That is an uncertainty I don't like.
0:08:35 > 0:08:39That said, I'd still take a gamble on it.
0:08:39 > 0:08:42I love the location and it's got charm.
0:08:42 > 0:08:44Let's see who fell for that charm when it went under the hammer.
0:08:49 > 0:08:53We're off to the seaside, lot number 38. Anybody here for this?
0:08:53 > 0:08:5415?
0:08:55 > 0:08:5815 here. At £15,000 we're away.
0:08:58 > 0:09:0216 anywhere? 16 seated. 17, may I say?
0:09:02 > 0:09:0518. 19. 20.
0:09:06 > 0:09:1020, I've got. 21. 22.
0:09:10 > 0:09:1323. 24. 25.
0:09:13 > 0:09:1625. 26.
0:09:16 > 0:09:2126. New position. 27. 27 I've got. 28.
0:09:23 > 0:09:2429.
0:09:24 > 0:09:2729 I've got. 30, may I say?
0:09:27 > 0:09:2830 I've got. 31?
0:09:30 > 0:09:3231 I'm bid. 32.
0:09:32 > 0:09:34Shake of the head at 32.
0:09:34 > 0:09:36With you, madam, at 31.
0:09:36 > 0:09:39At £31,000, and for the first time.
0:09:39 > 0:09:41At £31,000 for the second time.
0:09:41 > 0:09:46At £31,000 then, for the third and final time.
0:09:46 > 0:09:48With you, madam.
0:09:48 > 0:09:52So, for £31,000, a successful bidder for the greystone,
0:09:52 > 0:09:56two-bedroom bungalow is local lady, Marge.
0:09:56 > 0:10:00She works in an operational support role for a local employer.
0:10:00 > 0:10:03She and her sister Kath joined me down at the beach.
0:10:05 > 0:10:08- Kath, Marge, good to meet you both. - Nice to meet you, too.
0:10:08 > 0:10:12Congratulations. Tell me why you wanted to buy this place.
0:10:12 > 0:10:14I've bought it for a holiday home for me and my kids.
0:10:14 > 0:10:16What an amazing place to have as a holiday home.
0:10:16 > 0:10:19- It is, it's a lovely place. - How old are your children?
0:10:19 > 0:10:22I got a 16-year-old and a 12-year-old.
0:10:22 > 0:10:25- Megan's 16, and Sam's 12. - So, what do they think about it?
0:10:26 > 0:10:30- Erm, looking forward to it! - Yeah.- Yes.- Yeah.
0:10:30 > 0:10:32Do you have family as well?
0:10:32 > 0:10:34I do, yes.
0:10:34 > 0:10:36- Are they excited about coming down here?- They are. We are.
0:10:36 > 0:10:41My husband and I actually have a caravan on one of the sites locally.
0:10:41 > 0:10:44- Oh, great.- We spend most weekends in the summer down here anyway.
0:10:44 > 0:10:46Oh, right. So that's really worked out well.
0:10:46 > 0:10:49- And I'm renting one at the moment next door to her.- Oh, right.
0:10:49 > 0:10:53So, did you know about these little sort of houses?
0:10:53 > 0:10:56My husband and I came down just shy of 30 years ago,
0:10:56 > 0:10:59and we were looking at buying on the front.
0:10:59 > 0:11:02Not this one, but these were here then.
0:11:02 > 0:11:05Actually, the one we were interested in isn't there any more.
0:11:08 > 0:11:12Sadly, Marge's husband died suddenly two years ago.
0:11:12 > 0:11:15This area had been a place they both loved to visit,
0:11:15 > 0:11:16so this is clearly going to be
0:11:16 > 0:11:19an important, emotional purchase for her.
0:11:19 > 0:11:21So that lease approval is vital.
0:11:23 > 0:11:26Let's go on to some of the legal sides of the property.
0:11:26 > 0:11:29One of the issues, of course, is the land, isn't it?
0:11:29 > 0:11:32You now own the property outright, but the land is leased.
0:11:32 > 0:11:35What kind of term of lease have you got?
0:11:35 > 0:11:38It's a 12-month rolling contract, but one of the clauses in the lease
0:11:38 > 0:11:41- is that they can give me three months.- At any stage?
0:11:41 > 0:11:44- At any stage, yes. - Presumably you can have the house.
0:11:44 > 0:11:48- Yes, I can. Just got to move it! - How does that make you feel?
0:11:48 > 0:11:50A little bit nervous, but it was here 30 years ago,
0:11:50 > 0:11:52so I don't feel that bad.
0:11:53 > 0:11:54I could have paid £2,000 more
0:11:54 > 0:11:57and got a two-bedroomed terraced house up the road
0:11:57 > 0:12:01from my property, but it hasn't quite got the same kerb appeal.
0:12:01 > 0:12:03No, well, there is that.
0:12:03 > 0:12:07This is a great opportunity for Marge to make some really happy
0:12:07 > 0:12:09new memories with her family.
0:12:09 > 0:12:13She aims to have the beach bungalow holiday ready in a couple of months.
0:12:13 > 0:12:16So what are you going to do then to sort it out?
0:12:16 > 0:12:19I'm going just chip back the door frames and put in new reveals.
0:12:19 > 0:12:22I'll probably paint it a different colour.
0:12:22 > 0:12:25A new kitchen inside, and a new back door, really.
0:12:25 > 0:12:28What's the budget for doing what you're planning?
0:12:28 > 0:12:33- Probably £2,000-£3,000. - And who's going to do the work?
0:12:33 > 0:12:36- Friends and family. - A joint effort, you know?
0:12:36 > 0:12:41Anybody that's got a couple of hours to spare can wield a paintbrush,
0:12:41 > 0:12:42- that kind of thing. - Or a screwdriver.
0:12:42 > 0:12:46Are the kids going to get involved in doing some of the work?
0:12:46 > 0:12:47- Oh, yeah.- Yeah.
0:12:47 > 0:12:49Well, listen, congratulations. I'm really happy for you.
0:12:49 > 0:12:51- Good luck with it.- Thank you.
0:12:51 > 0:12:53- Looking forward to seeing how you get on.- Yep.- Good.
0:12:54 > 0:12:58Well, Marge is clearly delighted with this place,
0:12:58 > 0:13:00and it will be a wonderful place for her
0:13:00 > 0:13:03and her family to enjoy summer holidays and the like.
0:13:03 > 0:13:05And with sister Kath's help they should be able to get it
0:13:05 > 0:13:08sorted for that £2,000-£3,000 budget.
0:13:08 > 0:13:13The big cloud on the horizon is the lease, or lack of it,
0:13:13 > 0:13:16and the fact they could be kicked out of here any stage with just
0:13:16 > 0:13:19three months' notice, but if you can live with that, then, heck,
0:13:19 > 0:13:22there are hopefully some good times ahead.
0:13:22 > 0:13:23Join us later in the show
0:13:23 > 0:13:26when we find out how they sort this place out.
0:13:34 > 0:13:39This is Carshalton in Surrey, and very pretty it is too.
0:13:39 > 0:13:43Now, the old part of town is centred around the ponds and a traditional
0:13:43 > 0:13:46high street, with the station just literally up the road,
0:13:46 > 0:13:49so you can nip into town in just under half an hour.
0:13:49 > 0:13:52Carshalton was in fact once a centre of
0:13:52 > 0:13:56lavender growing before housing took the place of fields.
0:13:56 > 0:13:57The question is,
0:13:57 > 0:14:01will the property we're here to see have that sweet smell of success?
0:14:03 > 0:14:06# Lavender blue, dilly dilly
0:14:06 > 0:14:10# Lavender green... #
0:14:10 > 0:14:13You can imagine Carshalton was once a little waterside town,
0:14:13 > 0:14:17nestled in the Surrey countryside, but its quaint shops
0:14:17 > 0:14:19and leafy location has contributed
0:14:19 > 0:14:22to its popularity as a commuter hot spot.
0:14:22 > 0:14:26Unfortunately, that brings with it a lot of traffic, which seems to
0:14:26 > 0:14:29be one of the drawbacks of the property I'm here to see.
0:14:30 > 0:14:34So, we'd left the pretty ponds and cute high street behind us, sadly,
0:14:34 > 0:14:38and just on the edge of town is the property we're here to see today.
0:14:38 > 0:14:40It's much more of a suburban feel round here,
0:14:40 > 0:14:43but you're still only ten minutes walk or so
0:14:43 > 0:14:44to the train station,
0:14:44 > 0:14:47which has got to be one of the main attractions.
0:14:47 > 0:14:50Now, the house itself has got three bedrooms and a guide price
0:14:50 > 0:14:53of £160,000, and it's screaming out
0:14:53 > 0:14:55for some off-road parking.
0:14:55 > 0:14:57I'm going to have a look around.
0:14:58 > 0:15:01It would be worth getting permission to lower that kerb,
0:15:01 > 0:15:04then you could park your car away from the busy road.
0:15:04 > 0:15:09Not great for the outside view, though, so how about the one inside?
0:15:09 > 0:15:11The first thing I would do would be to get a new,
0:15:11 > 0:15:13efficient, double-glazed door,
0:15:13 > 0:15:16so you don't hear any of the road noise.
0:15:16 > 0:15:17But what a welcoming hallway.
0:15:17 > 0:15:20Loads of room for storage, your coats,
0:15:20 > 0:15:23lots of under-the-stairs storage, and you can even think about
0:15:23 > 0:15:25knocking these through too, to have a loo.
0:15:25 > 0:15:28You've got a lovely space through there for your lounge,
0:15:28 > 0:15:31and in here, what a fabulous area.
0:15:31 > 0:15:35It's bright and sunny, somewhere for the kids to sit up -
0:15:35 > 0:15:37a little breakfast bar. The kitchen,
0:15:37 > 0:15:39I really like this sort of U-shaped design.
0:15:39 > 0:15:41Obviously, it's all very dated.
0:15:41 > 0:15:43It needs ripping out and starting again.
0:15:43 > 0:15:48What's through here? What a nice surprise, check out the garden.
0:15:49 > 0:15:52This space is possibly three times the length and, at present,
0:15:52 > 0:15:56also the height of your average semi-detached garden.
0:15:56 > 0:15:59So it looks like it's going to need a combine harvester rather than
0:15:59 > 0:16:02a strimmer to deal with this wilderness.
0:16:02 > 0:16:06Some of the local residents might not be pleased to be moved on.
0:16:06 > 0:16:10But look at the house. It's easy to see the potential here.
0:16:10 > 0:16:13There's plenty of room for a single-storey extension,
0:16:13 > 0:16:17just like the neighbour's, or moving up into the loft.
0:16:17 > 0:16:19Again, just like next door.
0:16:19 > 0:16:23Back inside, and upstairs there are three bedrooms, two doubles
0:16:23 > 0:16:24and a small single.
0:16:26 > 0:16:29And a bathroom suite that's just starting to show its age.
0:16:29 > 0:16:33In general, though, it all feels a little compact up here,
0:16:33 > 0:16:36so if money's tight and you're looking to create some space,
0:16:36 > 0:16:39then I think I might just have a sneaky solution for that.
0:16:42 > 0:16:46So, how do you add space to a property without extending it?
0:16:46 > 0:16:51Sounds like a trick question? Well, it's not, you just remove this baby.
0:16:51 > 0:16:55Now, gaining that extra couple of feet can make all the difference
0:16:55 > 0:16:57to the feel of a room, and suddenly, well,
0:16:57 > 0:17:00you're not restricted to where you can fit in your furniture.
0:17:00 > 0:17:03It's a reasonably big job since you have to continue to support
0:17:03 > 0:17:07the chimney stack above the bit you're removing with steels,
0:17:07 > 0:17:09and it must be done properly and with care.
0:17:09 > 0:17:13But if you're struggling for space, all the muck and mess
0:17:13 > 0:17:17and extra cost could be well worth the effort.
0:17:17 > 0:17:20Removing those chimney breasts would certainly be cheaper
0:17:20 > 0:17:23than adding a new extension or converting your loft.
0:17:23 > 0:17:28But it's no weekend DIY job, it's a task best left to professionals.
0:17:28 > 0:17:31So loads of potential and, despite the traffic,
0:17:31 > 0:17:33a good location in Carshalton.
0:17:35 > 0:17:38But bearing in mind its guide price of £160,000 plus,
0:17:38 > 0:17:40does a local estate agent
0:17:40 > 0:17:44think it would be worth spending a substantial sum here?
0:17:44 > 0:17:47The golden rule in sort of refurbishing a property is to
0:17:47 > 0:17:50spend the least amount for the maximum effect.
0:17:50 > 0:17:53With this property, I do think it leads uplifting.
0:17:53 > 0:17:55I don't think it's going to take that much, really.
0:17:55 > 0:17:59You would probably get away with spending about 15 or 20,000 maybe.
0:17:59 > 0:18:01And if you're more prudent, less.
0:18:01 > 0:18:05So with that guide price of £160,000 plus,
0:18:05 > 0:18:09what sort of returns could the new owner expect?
0:18:09 > 0:18:13Once it's refurbished, probably around £250,000.
0:18:13 > 0:18:15What could you let it for?
0:18:15 > 0:18:18This property would probably achieve around £1,250
0:18:18 > 0:18:19per calendar month.
0:18:20 > 0:18:24This is a decent house in an excellent area with scope to
0:18:24 > 0:18:28improve and add value, which is what everybody wants from an investment.
0:18:28 > 0:18:30Let's see who went for it at the auction.
0:18:34 > 0:18:39Lot 21, Carshalton, not too far from Sutton.
0:18:39 > 0:18:42I think it's worth 190? 190?
0:18:42 > 0:18:44Let's start the other way. 150?
0:18:44 > 0:18:46Bidding at the back, 150.
0:18:47 > 0:18:50155? 155. I see you.
0:18:50 > 0:18:52160 at the back.
0:18:52 > 0:18:55161.
0:18:55 > 0:18:56162.
0:18:56 > 0:18:57163.
0:18:57 > 0:18:58164?
0:19:00 > 0:19:03163 with you. New bidder, 164.
0:19:03 > 0:19:06There were several interested bidders for this lot.
0:19:06 > 0:19:09We rejoin the bidding when it reached 188,000.
0:19:09 > 0:19:10187.
0:19:10 > 0:19:12188? 188.
0:19:12 > 0:19:14189. 190 on the phone?
0:19:16 > 0:19:17189 in the room.
0:19:17 > 0:19:20First time, second time, third and last time. Are we all...
0:19:20 > 0:19:23190, yeah? 191.
0:19:23 > 0:19:26192. 193.
0:19:26 > 0:19:28194. 195.
0:19:28 > 0:19:29196?
0:19:30 > 0:19:33195, first time, second time,
0:19:33 > 0:19:35third and last time. Are you all done?
0:19:37 > 0:19:39Sold, 195. Well done, sir.
0:19:40 > 0:19:45That successful bidder who bought it for £195,000 was Trevor.
0:19:45 > 0:19:48He's purchased the house along with his friend Mark,
0:19:48 > 0:19:50who owns a double-glazing company
0:19:50 > 0:19:52and has bought properties in the past.
0:19:52 > 0:19:53They decided to team up
0:19:53 > 0:19:57after Trevor sold his reinforced concrete business.
0:19:57 > 0:19:59I met up with him to find out more.
0:20:00 > 0:20:02- Trevor, congratulations. - Thank you very much indeed.
0:20:02 > 0:20:04Tell me why you wanted to buy this on auction day.
0:20:04 > 0:20:06How much research had you done?
0:20:06 > 0:20:08We don't actually do a lot of research,
0:20:08 > 0:20:13we know what the area is worth and we have a figure in our brain.
0:20:13 > 0:20:15If we get it at that figure, we get it,
0:20:15 > 0:20:18if not, we walk away from the auction, simple as that.
0:20:18 > 0:20:21- So, who is we?- Mark, my partner.
0:20:21 > 0:20:24He has a double-glazing firm local to here
0:20:24 > 0:20:27and we've known each other 15 years.
0:20:27 > 0:20:29We've got on very well together
0:20:29 > 0:20:31and we are going into the property market now.
0:20:31 > 0:20:34So, what did you like about this property in particular?
0:20:34 > 0:20:38It's basically the location, we don't like travelling far
0:20:38 > 0:20:40because the older you get...
0:20:40 > 0:20:44We have done all the long-distance when I had my own firm,
0:20:44 > 0:20:47we was up London everyday and we like local stuff
0:20:47 > 0:20:49and it's easier to keep an eye on.
0:20:49 > 0:20:51A lot of our tenants are very good
0:20:51 > 0:20:53and we like local stuff.
0:20:53 > 0:20:56So, it sounds like you're developing full-time at the moment.
0:20:56 > 0:20:58Half and half.
0:20:58 > 0:21:02Mark still keeps his business going, I keep my building going,
0:21:02 > 0:21:06and we would like to do this full-time eventually.
0:21:06 > 0:21:09What's it like being a landlord?
0:21:09 > 0:21:10It's quite nice.
0:21:10 > 0:21:13I should have done this years ago, to be truthful.
0:21:13 > 0:21:17But you get so busy at work with the paperwork but I enjoy it.
0:21:17 > 0:21:21I don't enjoy the paperwork side and I think Mark doesn't either.
0:21:21 > 0:21:25That's why he's shot off on holiday while we are down here.
0:21:25 > 0:21:28- He's left you to it today! - That's my Mark.
0:21:28 > 0:21:31We have our rows but we always come to an agreement.
0:21:31 > 0:21:34We are quite flexible.
0:21:34 > 0:21:39Ah, yes. Flexibility is the key to a successful partnership.
0:21:39 > 0:21:41Trevor and Mark have been friends for 15 years
0:21:41 > 0:21:45and have spent the last 18 months buying and renovating properties.
0:21:45 > 0:21:49They plan to get this place up and earning in just six weeks
0:21:49 > 0:21:53and hope their budget of 20,000 will be adequate for the job.
0:21:54 > 0:21:57Any extensions for that, going into the loft?
0:21:57 > 0:22:01No, we purely buy these for rent at the moment.
0:22:01 > 0:22:04In future, we would more than likely think about an extension
0:22:04 > 0:22:06out the back if we got round to selling it
0:22:06 > 0:22:09but these are long-term investments
0:22:09 > 0:22:13so more than likely the children will have the benefit of all this.
0:22:13 > 0:22:15Are you thinking about knocking any walls down
0:22:15 > 0:22:18because at the moment I quite like the layout?
0:22:18 > 0:22:21I rarely say that when I walk into a property like this.
0:22:21 > 0:22:23Funnily enough, this works for me.
0:22:23 > 0:22:27It's not the biggest three-bedroom semi you will find in England
0:22:27 > 0:22:30but I like the layout here.
0:22:30 > 0:22:35I know it's old but this will all be new worktops and it works for us.
0:22:35 > 0:22:38In my ideal world, I would probably like some doors here
0:22:38 > 0:22:40but you have a back door there.
0:22:40 > 0:22:43At the moment it's all boarded up
0:22:43 > 0:22:45but when it's glazed it will let more light in
0:22:45 > 0:22:49and we might think about doing French doors but we will see how the budget
0:22:49 > 0:22:54goes and if we are under budget then we will put some French doors in.
0:22:54 > 0:22:57Yeah, if your partner has a double-glazing company,
0:22:57 > 0:23:01why not fit those doors there, bring the outside in?
0:23:01 > 0:23:04- I can bend my head around that one. - Mull it over, Trevor.
0:23:04 > 0:23:05I think it's a great idea.
0:23:09 > 0:23:10But since an extension
0:23:10 > 0:23:14and loft conversion are not presently on the cards, I'm going to
0:23:14 > 0:23:18play my last card and ask what he thinks about those chimney breasts.
0:23:19 > 0:23:23Trevor, just to get a little bit more space in here, there is enough
0:23:23 > 0:23:27room for a table but there could be more room for my liking.
0:23:27 > 0:23:29What do you think about taking out the chimney stack
0:23:29 > 0:23:32while you've got the builders in?
0:23:32 > 0:23:35We have thought about it, to be truthful.
0:23:35 > 0:23:41I'm very pro-removing them, I think it will give it more space but Mark,
0:23:41 > 0:23:44my partner, is more pounds, shillings and pence wise
0:23:44 > 0:23:47and he thinks the cost involved doesn't warrant it.
0:23:47 > 0:23:54So, it's quite a bit of work but long-term it would pay off.
0:23:54 > 0:23:58We will see. As they say, we will get back to you on that one.
0:23:58 > 0:24:01- So, you are quietly confident, aren't you?- Very confident.
0:24:01 > 0:24:04- We are always confident. - Trevor, good luck with the project.
0:24:04 > 0:24:09- I can't wait to see how it looks. Well done.- Thank you very much.
0:24:09 > 0:24:11Always confident, I love that.
0:24:11 > 0:24:16Six weeks, tenants in, get the rent flowing, bosh, done.
0:24:16 > 0:24:19Find out if it's that simple later on in the show!
0:24:20 > 0:24:21Coming up in Stoke,
0:24:21 > 0:24:25will this former council house passe my quality control test?
0:24:25 > 0:24:28It's solidly built, listen to that,
0:24:28 > 0:24:30the stud partition wall.
0:24:30 > 0:24:34This three-bed semi in Surrey had a great layout
0:24:34 > 0:24:37but will the budget add up and make Trevor clever?
0:24:37 > 0:24:40You've got to be a clever person to get it dead on budget.
0:24:41 > 0:24:45But first, Marge's Cumbrian coastal retreat hasn't been all that
0:24:45 > 0:24:46relaxing so far.
0:24:46 > 0:24:48I was down nearly every night and all weekends
0:24:48 > 0:24:49doing the painting, et cetera.
0:24:53 > 0:24:57It was on the Cumbrian coast between Whitehaven and Sellafield
0:24:57 > 0:25:01that we first encountered a very interesting auction lot.
0:25:01 > 0:25:04# Down on the beach... #
0:25:07 > 0:25:10Described as a two-bedroom beach bungalow,
0:25:10 > 0:25:13its location was both a plus and a negative.
0:25:13 > 0:25:15The beach was at the front
0:25:15 > 0:25:19and the train tracks at the back on land owned by Network Rail.
0:25:20 > 0:25:24However, it came with a rolling lease that meant the new
0:25:24 > 0:25:29buyers could be asked to vacate with just three months' notice.
0:25:29 > 0:25:32But since the beach bungalow had been here for over 30 years,
0:25:32 > 0:25:37local lady Marge, encouraged by her sister, Kath, decided after
0:25:37 > 0:25:42taking advice that it was worth the risk and bought it for 31,000.
0:25:42 > 0:25:44I have bought it for a holiday home for me and my kids.
0:25:44 > 0:25:48- What an amazing place to have as a holiday home.- It's lovely.
0:25:48 > 0:25:51- How old are your children?- I have a 16-year-old and a 12-year-old.
0:25:51 > 0:25:56This area had long been a favourite for Marge and her late husband
0:25:56 > 0:26:00and with Kath's family having a caravan nearby this bungalow looked
0:26:00 > 0:26:04the perfect place for a holiday home for Marge and her son and daughter.
0:26:04 > 0:26:08# ..Takes me back to the place
0:26:08 > 0:26:10# That I know
0:26:11 > 0:26:14# Down on the beach... #
0:26:14 > 0:26:18So, armed with a £2-£3,000 budget,
0:26:18 > 0:26:20Marge was hoping that with the help of family
0:26:20 > 0:26:24and friends she could get the beach bungalow ready in around two months.
0:26:29 > 0:26:31Well, three-and-a-half months later
0:26:31 > 0:26:33its time to grab our bucket and spade
0:26:33 > 0:26:35and go back to the beach.
0:26:35 > 0:26:38MUSIC: "Echo Beach" Martha And The Muffins
0:26:39 > 0:26:42On the outside, there's fresh paintwork
0:26:42 > 0:26:45and a new decked area which is well under construction.
0:26:45 > 0:26:48It will be a lovely spot on a sunny day to sit
0:26:48 > 0:26:49and watch the tide rolling in.
0:26:52 > 0:26:53While inside,
0:26:53 > 0:26:58the central lounge is now a welcome retreat from the grey skies.
0:26:58 > 0:26:59There's new laminate flooring,
0:26:59 > 0:27:03and heating and it's completely refurbished throughout.
0:27:06 > 0:27:09As are the two bedrooms which are now modern and bright.
0:27:14 > 0:27:17But perhaps the biggest change is in the kitchen.
0:27:21 > 0:27:25We've put a complete new kitchen in, there was nothing, originally
0:27:25 > 0:27:30but a sink unit, a Rayburn cooker and a large boiler in the corner.
0:27:30 > 0:27:32So we've taken out the Rayburn, tiled the back of the wall,
0:27:32 > 0:27:36put a free-standing cooker in and a combi-boiler that works really well.
0:27:38 > 0:27:42The kitchen is looking great and with the bathroom given
0:27:42 > 0:27:45a full makeover, complete with electric shower,
0:27:45 > 0:27:49this has been a comprehensive refurbishment from ceiling to floor.
0:27:51 > 0:27:53When I got the property three months ago,
0:27:53 > 0:27:56all the floors needed to be changed,
0:27:56 > 0:27:58the floors have gone up by four inches,
0:27:58 > 0:28:02the original people decided, after a period of time,
0:28:02 > 0:28:04they would put central heating in.
0:28:04 > 0:28:06What they did was lay the pipes
0:28:06 > 0:28:10over the top of the original floor and put a false floor over the top.
0:28:10 > 0:28:13So we have changed that because we had a step going into the kitchen
0:28:13 > 0:28:15which is not there any more.
0:28:15 > 0:28:18I changed the patio doors which I didn't intend doing
0:28:18 > 0:28:21but after I got the property realised one of the doors was jammed solid.
0:28:21 > 0:28:25The dining room table and chairs in, the two sofas.
0:28:25 > 0:28:27I'm pleased with the finish.
0:28:27 > 0:28:32I think all of the greens set it off and finish it off nicely.
0:28:33 > 0:28:37Well, Marge has certainly made this house very green.
0:28:37 > 0:28:41It's now a pleasant environment just to relax in and enjoy the scenery.
0:28:41 > 0:28:42So, who did all the work?
0:28:44 > 0:28:47I had a contractor in doing the work and he's been brilliant.
0:28:47 > 0:28:49He's done everything for me.
0:28:49 > 0:28:53I was down every night and weekends doing the painting et cetera.
0:28:53 > 0:28:56The previous occupier had bright red walls in here
0:28:56 > 0:28:58so it took a bit of covering.
0:28:58 > 0:29:02There are still a few external jobs to finish off which,
0:29:02 > 0:29:05for the time being, the weather has prevented.
0:29:05 > 0:29:09But, as she bought this as a holiday home for herself and her family,
0:29:09 > 0:29:13what do her two children make of their beach bungalow?
0:29:13 > 0:29:16# We're all going on a summer holiday
0:29:16 > 0:29:20# No more workin' for a week or two... #
0:29:20 > 0:29:23They love it. My sister has a caravan
0:29:23 > 0:29:27and when we were children we had a caravan on the other caravan site.
0:29:27 > 0:29:29So, yeah, born to it.
0:29:29 > 0:29:34When the sun does shine brightly you can see it's a great holiday
0:29:34 > 0:29:37location and it's now a great holiday home too.
0:29:37 > 0:29:41But did her proposed £2-£3,000 budget survive the changes?
0:29:41 > 0:29:45Including the decking, it's coming in just under £5,000.
0:29:45 > 0:29:47So I'm still quite happy with that.
0:29:51 > 0:29:56Well, her £5,000 spend on top of her £31,000 purchase price takes
0:29:56 > 0:30:01the total outlay to 36,000, not including tax and other costs.
0:30:01 > 0:30:04What do two local property experts, including the auctioneer
0:30:04 > 0:30:08who sold the property, make of her refreshed seaside retreat?
0:30:08 > 0:30:13When I saw this property a few months ago it was completely
0:30:13 > 0:30:15different to what it is now. What a transformation!
0:30:15 > 0:30:17Very, very impressed with the result.
0:30:17 > 0:30:21The most important thing is the lady has put heart
0:30:21 > 0:30:25and soul into trying to make this a homely place for herself
0:30:25 > 0:30:29but, to be fair, this property isn't about the dwelling,
0:30:29 > 0:30:30it's about the location.
0:30:30 > 0:30:34And with that in mind, dependent upon your point of view,
0:30:34 > 0:30:36it's either heaven or it's hell.
0:30:36 > 0:30:39The lease for the land that the bungalow sits on is
0:30:39 > 0:30:42owned by Network Rail who have the right to give three months'
0:30:42 > 0:30:46notice to leave, that inevitably affects the value of the property.
0:30:46 > 0:30:50So, having spent £36,000 on it, was it a good investment for Marge?
0:30:52 > 0:30:58I think you would achieve in the region of £45-£50,000.
0:30:58 > 0:31:01If we found the right buyer, on the right day with the sun
0:31:01 > 0:31:06shining I would anticipate getting somewhere between 45 and £50,000.
0:31:06 > 0:31:09Those valuations could mean a potential pre-tax
0:31:09 > 0:31:12profit of between £9,000 and £14,000.
0:31:12 > 0:31:15So, what does Marge make of those resale figures?
0:31:15 > 0:31:18They're probably right.
0:31:18 > 0:31:21A property is only worth what somebody is prepared to pay for it.
0:31:21 > 0:31:22So, yeah.
0:31:24 > 0:31:27This type of property is not traditionally rented out
0:31:27 > 0:31:32but the estate agents said rental values in the region of £350
0:31:32 > 0:31:35per calendar month might be possible for a long-term tenancy
0:31:35 > 0:31:37and an annual income of around
0:31:37 > 0:31:40£5,000 on the holiday letting market.
0:31:40 > 0:31:42Both of these would generate a healthy yield.
0:31:42 > 0:31:46But, for Marge, buying this place was less about the money
0:31:46 > 0:31:51and more about having a family holiday home in a place she loves.
0:31:51 > 0:31:54I think it's very tranquil. I sit and look out the patio doors
0:31:54 > 0:31:57most of the time watching,
0:31:57 > 0:31:59just watching the tide.
0:31:59 > 0:32:02Yeah, looking at the Isle of Man on a good day.
0:32:02 > 0:32:05# I left my soul there
0:32:05 > 0:32:07# Down by the sea
0:32:09 > 0:32:12# I lost control here
0:32:12 > 0:32:15# Livin' free... #
0:32:22 > 0:32:26This is Blurton - once a small rural community.
0:32:26 > 0:32:29It's now a suburb of Stoke-on-Trent in Staffordshire.
0:32:29 > 0:32:34Up until the mid-1900s, most of this area was farmland
0:32:34 > 0:32:37used for growing crops for the nearby pottery towns.
0:32:37 > 0:32:40From 1945 onwards,
0:32:40 > 0:32:44large areas of it were bought up by the local council to build housing.
0:32:44 > 0:32:45So, not surprisingly,
0:32:45 > 0:32:49the property I am here to see is an ex-local authority property.
0:32:49 > 0:32:52This is it, three bedrooms on a nice corner plot.
0:32:52 > 0:32:56A guide price of 67,500 quid. Let's go inside.
0:32:56 > 0:32:59It actually looks pretty good from the outside,
0:32:59 > 0:33:03there's plenty of off-road parking made of modern block paving
0:33:03 > 0:33:06which would look great after some weeding.
0:33:06 > 0:33:10What have we got? Nice little porch area, keep the cold out.
0:33:10 > 0:33:13Hallway here and into your front room.
0:33:13 > 0:33:14If you watch the show a lot,
0:33:14 > 0:33:18you will know I am a huge fan of ex-local authority housing.
0:33:18 > 0:33:20Generally it is solidly built...
0:33:21 > 0:33:24That is the stud partition wall, that's brick.
0:33:24 > 0:33:27The rooms are a good size. Take for instance this,
0:33:27 > 0:33:30the front living room. Really nice.
0:33:30 > 0:33:33They are built to last and that's great.
0:33:33 > 0:33:35Look at this kitchen for instance.
0:33:35 > 0:33:37Through here, a really nice size
0:33:37 > 0:33:40kitchen/family dining area as well.
0:33:40 > 0:33:44Out the back there, utility space, downstairs loo.
0:33:44 > 0:33:46Yes, it needs some work,
0:33:46 > 0:33:49new units in here and it needs tidying up
0:33:49 > 0:33:53but the space you have to play with is fantastic.
0:33:53 > 0:33:56Upstairs, there are three good-sized bedrooms.
0:33:56 > 0:33:59All three could do with a bit of redecorating
0:33:59 > 0:34:01but everything is in good condition.
0:34:02 > 0:34:06The bathroom might be a little dated but it's perfectly functional
0:34:06 > 0:34:10so you could leave the suite as it is.
0:34:10 > 0:34:14As for the loft, it's all boarded out and there's even a roof window.
0:34:14 > 0:34:17It's not suitable to be used as a habitable room
0:34:17 > 0:34:22and there's only ladder access for a start but it's ideal for storage.
0:34:22 > 0:34:25All in all, a very good solid semi.
0:34:25 > 0:34:28At the rear of the property, this conservatory which is a nice
0:34:28 > 0:34:31additional thing and you step out into the back garden.
0:34:31 > 0:34:35So, what kind of a garden would you expect?
0:34:35 > 0:34:38Well, probably something to end about here.
0:34:40 > 0:34:45Well, no, actually you've got double that. Look at that.
0:34:45 > 0:34:47Absolutely unbelievable.
0:34:47 > 0:34:50The garden stretching another... oh, however far that is.
0:34:50 > 0:34:53Absolutely huge, big enough for a football pitch, perhaps,
0:34:53 > 0:34:54a small one.
0:34:54 > 0:34:59This is an added bonus, a perfect haven for a family to enjoy.
0:34:59 > 0:35:01But I'm afraid it's not all good news.
0:35:01 > 0:35:03There is one possible hidden problem.
0:35:03 > 0:35:09# I just heard some real bad news... #
0:35:09 > 0:35:12Now there is one potential fly in the ointment with this property
0:35:12 > 0:35:15and it's really not that obvious.
0:35:15 > 0:35:18It's all about having local knowledge,
0:35:18 > 0:35:20an example of where you really need to do your research
0:35:20 > 0:35:24because around these parts, especially this housing estate,
0:35:24 > 0:35:29and other areas like it, they used stuff called red ash -
0:35:29 > 0:35:35it's basically the mining residue, the slag from the mining industry -
0:35:35 > 0:35:40and they use that for hard core to go underneath floors.
0:35:40 > 0:35:42They then put concrete floors on top.
0:35:42 > 0:35:46Over time, some of that mining waste contains chemicals which
0:35:46 > 0:35:50reacts with the concrete and that can have all sorts of complications.
0:35:50 > 0:35:52It can cause the floor to bubble
0:35:52 > 0:35:53In the worst case scenario
0:35:53 > 0:35:56it can damage the foundations of the property.
0:35:56 > 0:36:00It's easy to get a survey done to check the state of the red ash
0:36:00 > 0:36:03and to give you the all clear or the beware.
0:36:03 > 0:36:04It's something you need to know about
0:36:04 > 0:36:07because when it comes to getting the mortgage,
0:36:07 > 0:36:09if a mortgage company finds out there is red ash
0:36:09 > 0:36:12and it turns out to be the nasty stuff, you won't get a mortgage.
0:36:12 > 0:36:16So a potentially big drawback for a property with a lot of potential.
0:36:16 > 0:36:20We invited a local estate agent to tell us about the options
0:36:20 > 0:36:24for this house, guided at £67,500. Is there room
0:36:24 > 0:36:28to add value to this already quite sizeable semi?
0:36:28 > 0:36:31The first thing that strikes you is the size of the property,
0:36:31 > 0:36:33three good bedrooms,
0:36:33 > 0:36:36plenty of reception room space and what is
0:36:36 > 0:36:38an extremely large garden.
0:36:38 > 0:36:42You could extend to the ground floor without really overdeveloping
0:36:42 > 0:36:44the site.
0:36:44 > 0:36:48The loft, although it's had a Velux window put in,
0:36:48 > 0:36:51I would not suggest that that is further developed.
0:36:51 > 0:36:55You can spend a lot of money and really gain little.
0:36:56 > 0:37:00The guide price was £67,500, what sort of returns could
0:37:00 > 0:37:04the house make on the resell and rental markets?
0:37:04 > 0:37:07The value of this property, with little improvement, somewhere
0:37:07 > 0:37:14in the region of £80,000, maybe 85 if you spend that little bit more money.
0:37:14 > 0:37:17Looking at the rental possibilities, you are going to be
0:37:17 > 0:37:23looking at somewhere 450, £475 per calendar month.
0:37:25 > 0:37:29Well, as is often the case with ex-local authority housing,
0:37:29 > 0:37:32a lot of property for the money and it's solidly built.
0:37:32 > 0:37:35Good sized rooms and, boy, oh, boy,
0:37:35 > 0:37:40a massive garden that you could potentially do some things with.
0:37:40 > 0:37:42Let's see who fancied the opportunity
0:37:42 > 0:37:43when it went under the hammer.
0:37:46 > 0:37:50Lot 71. 60, can I say?
0:37:50 > 0:37:5455, then? 55. Took it there. 55. 60? 60. At £60,000.
0:37:54 > 0:38:0065? 65,000. 70?
0:38:01 > 0:38:05No, take one if it helps. It does. 66.
0:38:05 > 0:38:0967. 68. 69. 70.
0:38:10 > 0:38:1471.
0:38:14 > 0:38:16No, at 71,000 in the blue shirt.
0:38:16 > 0:38:21At £71,000. 72, anywhere else? 72.
0:38:21 > 0:38:27No. 72, the lady's bid on the front row. At £72,000 then.
0:38:27 > 0:38:31For the first time, at £72,000. For the second time,
0:38:31 > 0:38:33third and final time. At £72,000.
0:38:36 > 0:38:38Your lot, madam, well done.
0:38:38 > 0:38:40That bidding was a bit of a roller coaster but it was
0:38:40 > 0:38:46bought for £72,000 by Donna Marie who lives in Staffordshire.
0:38:49 > 0:38:52She works as a freelance lettings manager
0:38:52 > 0:38:55and is building up her own property portfolio.
0:38:55 > 0:38:59Her mum, Chris, has been developing property for 25 years
0:38:59 > 0:39:02and Donna Marie now looks after her portfolio.
0:39:02 > 0:39:06I met up with them both to hear about their plans.
0:39:06 > 0:39:09Chris, Donna Marie, lovely to meet you both. Congratulations.
0:39:09 > 0:39:12- Thank you.- Tell me about why you wanted to buy the house.
0:39:12 > 0:39:15It fits the bill for a rental, really.
0:39:15 > 0:39:19It's got a few extras with conservatory, porch,
0:39:19 > 0:39:21large garden, and the figures stacked up.
0:39:21 > 0:39:24- Is this something you've done before?- Yes.- Many times?
0:39:24 > 0:39:26This is number 13.
0:39:26 > 0:39:30- Oh, wow!- Yeah.- She looks after my properties, as well.- Right.
0:39:30 > 0:39:34- Because I've been in the business for about 25 years.- Oh, well done.
0:39:34 > 0:39:37But I've got deteriorating health and, two years ago, I had a stroke.
0:39:37 > 0:39:40And since then, she's been looking after my portfolio for me
0:39:40 > 0:39:43- and everything.- Right. But you taught her how to do it, did you?
0:39:43 > 0:39:46- I give her a lot of help and support, don't I?- Yeah.
0:39:46 > 0:39:50I was in IT and telecoms, worked for the same firm for 15 years or
0:39:50 > 0:39:56so before I left work 18 months ago, and decided to go into it full-time.
0:39:56 > 0:39:59With her deteriorating health, I couldn't work in the industry
0:39:59 > 0:40:02I was in and look after her property, so it was...
0:40:02 > 0:40:05So is it working well for you? After you left a sort of normal
0:40:05 > 0:40:07nine-to-five job and you're doing this now?
0:40:07 > 0:40:09Yeah. No regrets, really.
0:40:09 > 0:40:12It wasn't so much a nine-to-five job, I was a corporate account manager and
0:40:12 > 0:40:16all over the place, working all sorts of hours, but for somebody else.
0:40:16 > 0:40:19So no regrets whatsoever.
0:40:19 > 0:40:23But it was just slightly ironic that a couple of months after
0:40:23 > 0:40:26leaving my job and having private health care with that,
0:40:26 > 0:40:28I was diagnosed with cancer.
0:40:28 > 0:40:30HE GASPS
0:40:31 > 0:40:35All clear now. But it did slow me down slightly.
0:40:35 > 0:40:40So I had to stop buying, because I couldn't risk being out of action
0:40:40 > 0:40:43and not being able to get the houses done and mortgages to pay, et cetera.
0:40:43 > 0:40:47- No regrets, but just a bit...- Very stressful, wasn't it?- For everyone.
0:40:47 > 0:40:48- Yeah.- Yeah, no kidding.
0:40:48 > 0:40:50Well, I'm glad to hear that your health is back on track.
0:40:50 > 0:40:53- Yeah, yeah, all great now, thanks.- Good.
0:40:53 > 0:40:56Well, the last few years have certainly seen tough times
0:40:56 > 0:40:58for Donna Marie - change of career,
0:40:58 > 0:41:03recovering from cancer and her mum Chris's poor health.
0:41:03 > 0:41:07But she still found time to build a growing rental portfolio.
0:41:07 > 0:41:10How many do you think you might actually end up going for?
0:41:10 > 0:41:13- We bought three at this auction.- Gosh.
0:41:13 > 0:41:16One was for my mum, which we turned over in two weeks
0:41:16 > 0:41:19- and the tenant's moved in just recently.- Oh, my word.
0:41:19 > 0:41:22This one's going to be a short turnover, and then the other
0:41:22 > 0:41:24one is sat waiting for me to start as soon as this is finished.
0:41:24 > 0:41:27What's your prediction on how long this is going to take?
0:41:27 > 0:41:30I've had a few applications already from people who want to live here.
0:41:30 > 0:41:31Oh, right.
0:41:31 > 0:41:34And one, ideally, would like to move in, in about eight days.
0:41:34 > 0:41:36- Eight days? From today?- Yeah.
0:41:36 > 0:41:39I think to two to three weeks, realistically, to get it spot-on.
0:41:39 > 0:41:42I'm allowing that, but if I want that particular tenant,
0:41:42 > 0:41:45it's possible, it's easily... There isn't a lot to do.
0:41:45 > 0:41:49All the tradesmen are scheduled in, all the materials have been ordered
0:41:49 > 0:41:53so there's no reason why it couldn't be done in eight days to two weeks.
0:41:53 > 0:41:55Eight days?!
0:41:55 > 0:41:58Well, apart from a new worktop and some re-tiling in the kitchen,
0:41:58 > 0:42:03the main aim here is just to spruce the place up for the rental market.
0:42:03 > 0:42:06Mum, Chris, can't be hands-on with the renovation.
0:42:06 > 0:42:09In fact, she and her husband are heading off to
0:42:09 > 0:42:12Spain for the winter, leaving Donna Marie to it.
0:42:12 > 0:42:16She's now built up a team of good tradespeople she can call on,
0:42:16 > 0:42:19and hopefully, all on her £2,000 budget.
0:42:19 > 0:42:22The only upcoming cost that may affect this
0:42:22 > 0:42:25property in the future is it's got red ash. The chemical reaction hasn't
0:42:25 > 0:42:28actually happened yet, so there's no damage and there's no concerns,
0:42:28 > 0:42:32- and it is mortgageable, because I got a mortgage on it.- Right.
0:42:32 > 0:42:34At what point did you get involved in this one?
0:42:34 > 0:42:37And do you get involved in your daughter's business any more?
0:42:37 > 0:42:40- I go to view nearly all of them with you, don't I?- Yeah.- Great.
0:42:40 > 0:42:42Two sets of eyes are better than one. So when we get to the stage
0:42:42 > 0:42:46where we're working out the budgetary requirements, it's always
0:42:46 > 0:42:48nice for us both to put our heads together and she helps me along.
0:42:48 > 0:42:51Great. Congratulations, lovely to meet you both,
0:42:51 > 0:42:53- look forward to seeing how you get on.- Thank you.
0:42:53 > 0:42:54- Thank you.- Yes, we'll be back.
0:42:54 > 0:42:56Thank you very much.
0:42:57 > 0:42:59So Donna Marie learning some
0:42:59 > 0:43:02fantastic skills from her mum, Chris.
0:43:02 > 0:43:06Property number 13, will it be lucky or a bit of a burden?
0:43:06 > 0:43:10Well, certainly, it's a tight schedule and budget.
0:43:10 > 0:43:12Something tells me she'll be just fine.
0:43:12 > 0:43:15You can find out how it all goes later in the show.
0:43:18 > 0:43:21We always hope our buyers set themselves realistic timescales
0:43:21 > 0:43:22and budgets.
0:43:22 > 0:43:25Well, there's only one way to find out,
0:43:25 > 0:43:27and that's to catch up with them after they've done the work.
0:43:30 > 0:43:34We're back in Carshalton in Surrey, where earlier, we saw this three-bed
0:43:34 > 0:43:39semi-detached house, which sold at auction for 195,000.
0:43:39 > 0:43:41It was bought by builder Trevor,
0:43:41 > 0:43:45who had sold his reinforced concrete company and teamed up
0:43:45 > 0:43:49with his friend of 15 years, double-glazing businessman, Mark.
0:43:49 > 0:43:52They were developing a portfolio of rental properties.
0:43:52 > 0:43:55Mark couldn't be there when we first visited,
0:43:55 > 0:43:58but Trevor was certainly open to my suggestions for this semi.
0:43:58 > 0:44:01Just to get a little bit more space in here,
0:44:01 > 0:44:03would you think about taking out the chimney stack?
0:44:03 > 0:44:06We have thought about it, to be truthful.
0:44:06 > 0:44:12I'm very pro-removing them, I think it will give it more space. But Mark,
0:44:12 > 0:44:15my partner, he's a little bit more pounds, shillings and pence wise,
0:44:15 > 0:44:19and he thinks the cost involved doesn't warrant it.
0:44:19 > 0:44:23I also thought French windows here would be a great idea.
0:44:23 > 0:44:27Trevor and Mark had a budget of 20,000, which seemed adequate.
0:44:27 > 0:44:30But their six-week timescale could prove a bit of a challenge.
0:44:30 > 0:44:34It was, in fact, five months later that we returned to see just
0:44:34 > 0:44:36what had finally happened.
0:44:38 > 0:44:41Well, it might not be so sunny today
0:44:41 > 0:44:45but the house definitely looks brighter and more welcoming.
0:44:45 > 0:44:49With new windows installed, that garden has now been opened up
0:44:49 > 0:44:54for a much-needed driveway, but is the inside just as improved?
0:44:54 > 0:44:57Well, the hallway's looking good, but go straight through to
0:44:57 > 0:45:01the back, and it's the kitchen that has been given a great new look.
0:45:07 > 0:45:12And I'm delighted to see that new French windows are in.
0:45:13 > 0:45:16I'm not sure if you can remember last time we were down here,
0:45:16 > 0:45:20we had a window over there, and there was a doorway over there.
0:45:20 > 0:45:25Blocked the old window up, we've put the new French doors in,
0:45:25 > 0:45:29ripped the old kitchen out, as you can see, with a breakfast bar here
0:45:29 > 0:45:31and, basically, refitted the whole lot and jiggled it to,
0:45:31 > 0:45:34you know, so it's a lot more manageable in here now.
0:45:34 > 0:45:38Fire breast behind you has been removed, new laminate flooring,
0:45:38 > 0:45:42that's about it, really. Makes it sounds simple, doesn't it?
0:45:43 > 0:45:46I'm glad the budget did stretch to those French windows,
0:45:46 > 0:45:50it really helps bring light back into the kitchen.
0:45:50 > 0:45:53I'm also pleased to see another bit of my advice was taken on here -
0:45:53 > 0:45:57those space-grabbing chimney breasts are gone.
0:45:57 > 0:45:58And I think it is a great result.
0:46:01 > 0:46:04For self-confessed penny-pinching Mark,
0:46:04 > 0:46:07it must have been a hard decision to make.
0:46:07 > 0:46:11I wasn't too sure, but it cost £1,200 to £1,500, so...
0:46:11 > 0:46:13And it gives a lot more room, so.
0:46:14 > 0:46:17I reckon it's money well spent on creating a nice new home.
0:46:17 > 0:46:20From a brand-new bathroom suite...
0:46:21 > 0:46:26..to new gas central heating, new doors, new electrics,
0:46:26 > 0:46:29there's new almost everything.
0:46:29 > 0:46:33We like quiet lives. We give people a nice start,
0:46:33 > 0:46:36and all our tenants are more like friends, now, rather than tenants.
0:46:36 > 0:46:39They get a good start with the kitchen,
0:46:39 > 0:46:42everything's new and we don't get any phone calls in the evening.
0:46:42 > 0:46:44We might get the odd one, "Something's just broken," but
0:46:44 > 0:46:47we'll get that fixed within a couple of days or something like that.
0:46:49 > 0:46:56# And I got a peaceful, easy feeling
0:46:56 > 0:47:02# And I know you won't Let me down... #
0:47:02 > 0:47:06Do the work upfront and it all leads, hopefully, to a quiet life.
0:47:06 > 0:47:09Although Mark may have a reputation for being tight with
0:47:09 > 0:47:13the pennies, he's certainly generous when handing out the praise.
0:47:13 > 0:47:17I think Trevor's done most of the work, all the work, more or less.
0:47:17 > 0:47:19I've just done bits of plastering, but I think it is fantastic.
0:47:19 > 0:47:22I think the decorator's done brilliant, I think it's brilliant.
0:47:22 > 0:47:25What's also looking much improved is the garden.
0:47:25 > 0:47:28It took its share of hard work and graft to clear up,
0:47:28 > 0:47:31but now it's a perfect complement to the house.
0:47:31 > 0:47:34If you look closer, the garden appears to have shrunk a bit,
0:47:34 > 0:47:37which could prove good news for Trevor and Mark.
0:47:38 > 0:47:41Basically, the garden is too long at the moment, and one of
0:47:41 > 0:47:43the neighbours is interested in purchasing it
0:47:43 > 0:47:45because he likes his allotments and stuff,
0:47:45 > 0:47:49so a bit of land at the bottom of the garden is always hard to put a figure
0:47:49 > 0:47:53on, so I'm sure we'll come to an agreement somewhere along the line.
0:47:53 > 0:47:57That could certainly help to recoup some of the money spent here.
0:47:57 > 0:48:00Trevor's work as a builder often took him onto other jobs,
0:48:00 > 0:48:03which meant this renovation was put on the back burner.
0:48:03 > 0:48:06That stretched its turnaround from the scheduled six weeks
0:48:06 > 0:48:08to five months.
0:48:08 > 0:48:11So, with those new French windows and those chimney breasts removed,
0:48:11 > 0:48:15how did their original 20,000 hold up?
0:48:15 > 0:48:20I think we worked out about 20, 23, 24 but...we always...
0:48:20 > 0:48:23I mean, it's never going to be dead on budget, so...
0:48:23 > 0:48:26You've got to be a very clever person to get it dead on budget,
0:48:26 > 0:48:29but, no, we're quite happy on 23, 24,000.
0:48:29 > 0:48:33So, add that likely 24,000 spent to their purchase price
0:48:33 > 0:48:39of £195,000 and their total outlay comes to about 219,000.
0:48:42 > 0:48:46Time to find out what two local estate agents think of Trevor
0:48:46 > 0:48:49and Mark's new entry onto the property market.
0:48:50 > 0:48:54Excellent, a complete transformation of this property.
0:48:54 > 0:48:57The last time we saw it, it was really bedraggled.
0:48:57 > 0:49:00You know, it's really presented well,
0:49:00 > 0:49:03nice and neutrally decorated, it's looking really good.
0:49:04 > 0:49:06my first impressions of the property are that
0:49:06 > 0:49:08I think it's been done really rather well,
0:49:08 > 0:49:12they've obviously put double glazing in, gas central heating,
0:49:12 > 0:49:15and they've put, obviously, the new kitchen and bathroom.
0:49:15 > 0:49:18They've finished off the garden well and they've even finished off
0:49:18 > 0:49:20the driveway, giving parking for two, maybe three cars,
0:49:20 > 0:49:23and that's a real bonus with a property like this.
0:49:23 > 0:49:26So far, so good, but with them aiming to put this house
0:49:26 > 0:49:29onto the rental market, what sort of returns could they expect?
0:49:31 > 0:49:32For rental, per calendar month,
0:49:32 > 0:49:34I would expect to achieve about £1,200.
0:49:34 > 0:49:38I would put this property on market at around £1,300 per calendar month.
0:49:38 > 0:49:43- Rent was very good, actually, I thought.- Yeah. Rental, 13, 12, 13.
0:49:43 > 0:49:46Yeah, no, it's very good, the rental on that.
0:49:46 > 0:49:50- That's what we hoped to do, so... - So that's what it will be.
0:49:51 > 0:49:53Those sort of figures could give Trevor
0:49:53 > 0:49:56and Mark an annual rental yield of around 7%.
0:49:56 > 0:50:00But should they change their minds on their 219,000 investment,
0:50:00 > 0:50:05then the estate agents reckon a resale could achieve 250,000,
0:50:05 > 0:50:10giving them a profit of £31,000, minus the usual tax and expenses.
0:50:13 > 0:50:17But with the rental market the preferred option, this is
0:50:17 > 0:50:20going to stay in their portfolio for the foreseeable future.
0:50:20 > 0:50:25- So will they work together again soon?- Yes.- Yeah.
0:50:27 > 0:50:30We get on very well together. We get on very well together, actually.
0:50:30 > 0:50:34- He does all the work.- Mark sits back and collects the money.
0:50:39 > 0:50:41Back now to Blurton in Staffordshire.
0:50:41 > 0:50:45Earlier in the programme, Donna Marie paid £72,000 for this
0:50:45 > 0:50:48three-bedroom former local authority property.
0:50:48 > 0:50:52And mum, Chris, has been developing properties for 25 years
0:50:52 > 0:50:56but ill-health means she now has to take a back seat.
0:50:56 > 0:51:01Donna Marie's also had a tumultuous time - having changed her
0:51:01 > 0:51:04career to property, she then had to undergo cancer treatment.
0:51:04 > 0:51:09Now fully recovered, she's not one to let the grass grow under
0:51:09 > 0:51:12her feet and has a few properties under her belt.
0:51:12 > 0:51:18- This is number 13.- Oh, wow!- Yeah.- She looks after my properties, as well.
0:51:18 > 0:51:21- Right.- Because I've been in the business for about 25 years.
0:51:21 > 0:51:22Oh, well done.
0:51:22 > 0:51:26But I've got deteriorating health and, two years ago, I had a stroke.
0:51:26 > 0:51:28And since then, she's been looking after my portfolio for me
0:51:28 > 0:51:31- and everything.- Right, you taught her how to do it, did you?
0:51:31 > 0:51:34- I give her a lot of help and support, don't I?- Yeah.
0:51:34 > 0:51:36She bought two others at the same auction.
0:51:36 > 0:51:40She planned to have this one ready in just eight days for tenants
0:51:40 > 0:51:41who were waiting in the wings.
0:51:41 > 0:51:44Mum, Chris, thought two to three weeks was more realistic.
0:51:44 > 0:51:49So, who was right? Four weeks later, we're back in Blurton to find out.
0:51:52 > 0:51:56At the front, the weeds have been pulled from the paved parking area.
0:51:57 > 0:52:01Donna Marie has successfully brought out the best in this house.
0:52:04 > 0:52:07The living room now looks fresh and inviting.
0:52:08 > 0:52:11And the conservatory has also been spruced up.
0:52:13 > 0:52:16Upstairs, those multicoloured bedrooms have been muted
0:52:16 > 0:52:19and there's now matching carpet throughout.
0:52:25 > 0:52:29Downstairs, work is well advanced in the replastered cloakroom
0:52:29 > 0:52:33and the kitchen has benefited from some subtle changes, too.
0:52:34 > 0:52:38In the kitchen, there were some old tiles around this area here
0:52:38 > 0:52:41and an old worktop. They've now been replaced.
0:52:41 > 0:52:45A good clean and tidy, freshen up of the paintwork, and that's about it.
0:52:45 > 0:52:50# I'm the cleaning woman Here to clean up your mess... #
0:52:50 > 0:52:52With her growing property portfolio,
0:52:52 > 0:52:57Donna Marie is very focused on the auction lots that she targets.
0:52:57 > 0:52:58When I look for a property,
0:52:58 > 0:53:02I'm either looking for a larger project, which I normally buy cash
0:53:02 > 0:53:05and then look to increase the value on it quite substantially,
0:53:05 > 0:53:08or I look for a property like this that needs very little work,
0:53:08 > 0:53:12it's mainly cosmetic, so a very small budget needed, a fast turnover,
0:53:12 > 0:53:15and, obviously, get tenants in as soon as possible.
0:53:15 > 0:53:18She normally allows around £5,000
0:53:18 > 0:53:20to refurbish the kitchen and the bathroom.
0:53:23 > 0:53:26But the bathroom in this property hasn't changed,
0:53:26 > 0:53:28so that's money she's saved.
0:53:28 > 0:53:30There was a lot of local interest in the house.
0:53:30 > 0:53:34Finding a tenant wasn't difficult at all.
0:53:34 > 0:53:37I actually advertised it before any of the work had even been done,
0:53:37 > 0:53:40and the response I got was really high.
0:53:40 > 0:53:43So the family that are moving in have got three kids,
0:53:43 > 0:53:46a couple of dogs, ideal for this property.
0:53:46 > 0:53:49That massive garden has been tamed a bit. It all sounds
0:53:49 > 0:53:54ideal for the new tenants, who will be paying £500 per calendar month.
0:53:54 > 0:53:58It's been a fast turnaround, with the job completed in just ten days.
0:53:58 > 0:54:01So, how much has Donna Marie herself been responsible for?
0:54:03 > 0:54:06I had the tradespeople in to do the skilled tasks and, pretty much,
0:54:06 > 0:54:09I did everything else with the help of a couple of my cousins
0:54:09 > 0:54:10for a couple of days.
0:54:10 > 0:54:16So everything that you see, I've done, apart from the worktops,
0:54:16 > 0:54:18the tiling, the gas work and electrical work.
0:54:18 > 0:54:21There's a lot of DIY jobs that have been done throughout the house
0:54:21 > 0:54:24that didn't meet safety standards, so they had to be rectified.
0:54:24 > 0:54:28What about her mum, Chris? Has she had any input?
0:54:28 > 0:54:30Yeah, I mean, my mum's pretty much semi-retired now,
0:54:30 > 0:54:33but she's always an ear on the end of the phone, "What should I do?
0:54:33 > 0:54:36"Is this a good idea, is that a good idea?"
0:54:36 > 0:54:40Well, changing the bedroom carpet was, and I wonder what Mum thought
0:54:40 > 0:54:44of that £2,000 budget? Did Donna Marie keep to it?
0:54:44 > 0:54:46Yeah, I've come in at just under the 2,000.
0:54:46 > 0:54:48I think my mum was saying two to five,
0:54:48 > 0:54:51and most of that budget has gone on trade work,
0:54:51 > 0:54:54and a little bit on materials, and the rest has been manpower.
0:54:54 > 0:54:57# Takes a little more than manpower... #
0:54:57 > 0:55:01With the £72,000 Donna Marie paid at auction, takes her total
0:55:01 > 0:55:03outlay here to 74,000.
0:55:03 > 0:55:08This is the 13th property in her growing buy-to-let portfolio.
0:55:08 > 0:55:09So, will it be lucky?
0:55:12 > 0:55:13Time to find out what two local
0:55:13 > 0:55:16estate agents think of the quick turnaround
0:55:16 > 0:55:18of this place and its current market valuation.
0:55:18 > 0:55:20Having seen the property before,
0:55:20 > 0:55:22coming back to the property,
0:55:22 > 0:55:26they've made a good job of kind of freshening the property up,
0:55:26 > 0:55:29aimed quite specifically at the rental market.
0:55:29 > 0:55:32I think the main selling point of this property is the outside space.
0:55:32 > 0:55:34It's rare to get a garden of that kind of size
0:55:34 > 0:55:37and also to have ample off-road parking.
0:55:37 > 0:55:41Donna Marie has let the house for £500 per calendar month, giving her
0:55:41 > 0:55:46a yield of over 8%. Is that in line with the estate agents' valuations?
0:55:46 > 0:55:50I'd put this property on the market to rent for £495 per calendar month.
0:55:50 > 0:55:52For the rental market,
0:55:52 > 0:55:55you'd be looking at a figure of £500 per calendar month.
0:55:55 > 0:55:58How much could the house now sell for?
0:55:58 > 0:56:01More than the £74,000 that Donna Marie's invested?
0:56:03 > 0:56:05If we were putting this property on the market at the moment,
0:56:05 > 0:56:09we would set an asking price of £80,000.
0:56:09 > 0:56:13I would put this property on the market for £84,950.
0:56:13 > 0:56:16Those valuations would produce a gross profit of between
0:56:16 > 0:56:20- £6,000 and £11,000 before tax and expenses.- Good.
0:56:20 > 0:56:22Yeah, a little higher than I thought,
0:56:22 > 0:56:24but the market's starting to pick up, so that's good.
0:56:24 > 0:56:27Nice tenants moving in, so, great.
0:56:27 > 0:56:30It's been a very efficient, tidy little refurbishment
0:56:30 > 0:56:34and a very good example of, "If it ain't broke, don't fix it."
0:56:34 > 0:56:38And Donna Marie has gained a lot of experience from mum, Chris.
0:56:38 > 0:56:41I didn't know how much I knew till I started doing it
0:56:41 > 0:56:43and you've just picked things up as you go along, really.
0:56:43 > 0:56:48Yeah, she's been a great help and influence for me, yeah.
0:56:51 > 0:56:55So there you have another three stories to add to our archive.
0:56:55 > 0:56:57Yes, there are plenty more where they came from,
0:56:57 > 0:57:00as you'll find out the next time you join us on Homes Under The Hammer.
0:57:00 > 0:57:01See you then.
0:57:21 > 0:57:25Subtitles by Red Bee Media Ltd