0:00:02 > 0:00:05- Hello, and welcome to the show.- For many, buying and doing up property
0:00:05 > 0:00:09is just a dream, but for others it's a wonderful reality.
0:00:09 > 0:00:13So are you a doer or a dreamer when it comes to homes under the hammer?
0:00:38 > 0:00:42Well, buying at auction is exciting but it can be stressful.
0:00:42 > 0:00:46The hammer goes down and, in a second, you've bought a house.
0:00:46 > 0:00:49So if you are planning to buy at auction, make sure you're prepared.
0:00:49 > 0:00:52So let's take a look at the auction properties
0:00:52 > 0:00:54that were up for sale on today's show.
0:00:55 > 0:00:59In Stoke-on-Trent, are things looking up for this two-bed house?
0:00:59 > 0:01:04Just check the roof, cos I can't see what kind of state it's in.
0:01:06 > 0:01:11And talking of roofs...you've got this, a London roof terrace.
0:01:11 > 0:01:14It's just fantastic. I love it.
0:01:15 > 0:01:17These properties have been sold at auction.
0:01:17 > 0:01:20We'll find out who bought them and what they paid for them
0:01:20 > 0:01:22when they went under the hammer.
0:01:22 > 0:01:24Your lot, sir. Well done.
0:01:28 > 0:01:31Vauxhall in south-west London has changed massively
0:01:31 > 0:01:32over the past 15 years.
0:01:32 > 0:01:36It used to be an area dominated by offices and factories.
0:01:36 > 0:01:39Now it's a popular, sought-after destination
0:01:39 > 0:01:43with lots of new housing developments, cafes, bars
0:01:43 > 0:01:46and incredible transport links.
0:01:46 > 0:01:49100 yards from the hustle and bustle
0:01:49 > 0:01:51and I'm here to see today's auction lot
0:01:51 > 0:01:54tucked away on this beautiful little square.
0:01:54 > 0:01:58You know, it feels a world away from busy, bustling Vauxhall.
0:01:58 > 0:01:59And here it is.
0:01:59 > 0:02:04Now, it's detached but I'm afraid it's not the entire building.
0:02:04 > 0:02:06I'm here to see the two top flats.
0:02:06 > 0:02:10Now, the average one-bed flat in this area can command
0:02:10 > 0:02:12as much as 350 grand,
0:02:12 > 0:02:18so I was very excited to hear the guide price on this, just £310,000.
0:02:18 > 0:02:19I'm going to get inside.
0:02:24 > 0:02:28Now, this is interesting because the flats are described in the auction
0:02:28 > 0:02:31catalogue as being non-self-contained.
0:02:31 > 0:02:34That means they've not legally been converted.
0:02:34 > 0:02:38So what you're really buying here is one property across two levels.
0:02:38 > 0:02:41What you've got to decide is whether you want to keep it as one
0:02:41 > 0:02:44or take the time and trouble to get planning permission
0:02:44 > 0:02:47to turn it officially into two flats.
0:02:50 > 0:02:54On this floor, you have a lounge and a bedroom with a bathroom leading
0:02:54 > 0:02:56off it, and the kitchen is on the floor below,
0:02:56 > 0:02:59along with another toilet.
0:02:59 > 0:03:03The second flat has a kitchen but it's just as tatty as the other one.
0:03:03 > 0:03:06But fear not, when all seems doom and gloom,
0:03:06 > 0:03:08there is one glimmer of hope.
0:03:09 > 0:03:13Permission for conversion for two flats was granted eight years ago
0:03:13 > 0:03:15but that has now lapsed.
0:03:15 > 0:03:18This nugget of information, well, it may give you some sway with
0:03:18 > 0:03:20the planners but, as we know,
0:03:20 > 0:03:24planning restrictions can change from year to year.
0:03:24 > 0:03:28The thing that made them happy eight years ago may not prove popular now.
0:03:28 > 0:03:33On the top floor alongside the kitchen, there are two more
0:03:33 > 0:03:38good-sized bedrooms, a very dirty bathroom and a separate loo.
0:03:38 > 0:03:40And if you still aren't quite convinced,
0:03:40 > 0:03:42there's one more set of stairs I haven't tackled yet.
0:03:42 > 0:03:45I wonder where they could possibly lead.
0:03:45 > 0:03:48Well, if you're wowed by all the greenery
0:03:48 > 0:03:50and pretty little spaces outside,
0:03:50 > 0:03:53look, you've got this, a London roof terrace.
0:03:53 > 0:03:57It's just fantastic. I love it.
0:03:57 > 0:03:58Brilliant!
0:03:58 > 0:04:01So, it's nice to end on a positive.
0:04:01 > 0:04:04The roof garden is this property's crowning glory.
0:04:04 > 0:04:08So with a guide price of 310,000,
0:04:08 > 0:04:10it seems like a lot of property for the money
0:04:10 > 0:04:13but is it worth all the hard work?
0:04:13 > 0:04:16I asked along a local property expert to give his views.
0:04:17 > 0:04:20It would probably turn out to be a spacious one-bedroom flat
0:04:20 > 0:04:24so you could possibly get up to the ranges of £325,000 to £350,000.
0:04:24 > 0:04:27A two-bedroom flat in this building with a roof terrace,
0:04:27 > 0:04:30you probably would achieve around about, let's say £400,000.
0:04:30 > 0:04:35If it was stripped out and converted to just one large flat,
0:04:35 > 0:04:37how much would it be worth then?
0:04:37 > 0:04:42You could expect to get up to around about £600,000, possibly.
0:04:42 > 0:04:47With one-bedroom flats achieving £1,300 per calendar month
0:04:47 > 0:04:52and two-bedroom properties fetching £1,700 per calendar month,
0:04:52 > 0:04:55it seems like a great investment for buy-to-let.
0:04:55 > 0:05:00There is an awful lot of work to do in this confused house.
0:05:00 > 0:05:04But if planning goes your way and you manage to separate these flats,
0:05:04 > 0:05:06the rewards will be high.
0:05:06 > 0:05:08Let's see who wanted this property
0:05:08 > 0:05:11and its beautiful setting as we go to auction.
0:05:15 > 0:05:19Three floors. You've got two non-self-contained flats.
0:05:19 > 0:05:22Start low at 300. Not going to go below three.
0:05:22 > 0:05:25300? In the ar... Yeah, 300.
0:05:25 > 0:05:28305. 305.
0:05:28 > 0:05:31you310. 315.
0:05:31 > 0:05:35320. 325.
0:05:35 > 0:05:37330?
0:05:37 > 0:05:40- 330.- 330.
0:05:40 > 0:05:45- 331? 332.- 335.- 335.
0:05:45 > 0:05:48336. 337.
0:05:48 > 0:05:51340. 341?
0:05:53 > 0:05:55341.
0:05:55 > 0:05:58- 3...- 345.- 345.
0:05:58 > 0:06:02346. 3... 350.
0:06:02 > 0:06:05351.
0:06:05 > 0:06:09351. Another spot on the right. 351.
0:06:09 > 0:06:13- 352.- 355.- 355.
0:06:13 > 0:06:153...
0:06:15 > 0:06:18360. 365?
0:06:20 > 0:06:23360. Standing up. Anyone else? 360.
0:06:23 > 0:06:26First time, second time,
0:06:26 > 0:06:29third and last time. Have you all done?
0:06:29 > 0:06:31HE BANGS GAVEL Sold 360.
0:06:32 > 0:06:35That one and only bid made by Bill
0:06:35 > 0:06:39secured the two flats for 360,000.
0:06:39 > 0:06:41His wife Kumi seemed rather excited,
0:06:41 > 0:06:43and I think she has every right to be.
0:06:43 > 0:06:47I met them back at the property to find out their plans.
0:06:47 > 0:06:50Congratulations. This really is a gem of a property
0:06:50 > 0:06:52and you got it on auction day.
0:06:52 > 0:06:56So how much had you, in your minds, intended to spend on the day?
0:06:56 > 0:07:02- Well, it was your money. - 400. 400,000 was our budget.
0:07:02 > 0:07:06It's a fantastic building but it's just a bit confused on the inside.
0:07:06 > 0:07:11So what are you two going to do to get the most out of it?
0:07:11 > 0:07:14Well, um, the possibility is one property,
0:07:14 > 0:07:16two floors with a roof garden,
0:07:16 > 0:07:20or two flats, so one floor each.
0:07:20 > 0:07:21We haven't decided on that yet.
0:07:21 > 0:07:25We've got to start immediately now with getting electricity
0:07:25 > 0:07:27and water into the place.
0:07:27 > 0:07:30And then we'll do a strip-out, first phase demolition,
0:07:30 > 0:07:34and start obviously building up, plastering, services,
0:07:34 > 0:07:37without still knowing whether it's going to be permission
0:07:37 > 0:07:39for two properties or one property.
0:07:39 > 0:07:42We'll get the result of that within three months, hopefully.
0:07:42 > 0:07:44Kumi wants me to finish it in three months after that.
0:07:44 > 0:07:45I'm telling her six.
0:07:45 > 0:07:50- So nine months in total.- So, come on, roughly how much have you got
0:07:50 > 0:07:54- to spend on this?- 150.- £150,000 to really bring it up to scratch.- Yeah.
0:07:54 > 0:07:57So not only is this property sitting in a beautiful area,
0:07:57 > 0:08:02but Kumi and Bill plan a real luxury finish which could entice
0:08:02 > 0:08:04no end of interested renters.
0:08:04 > 0:08:07But once all the hard work is done, I really wouldn't be surprised
0:08:07 > 0:08:12if we return and find these two have fallen under the property's spell.
0:08:14 > 0:08:17Guys, I'm so excited to see the outcome of this property.
0:08:17 > 0:08:20And I've got a cheeky suspicion that I think you might be moving in here.
0:08:20 > 0:08:25- Bill, I can see the twinkle in your eye.- I don't know what to say.
0:08:25 > 0:08:28- Just wait and see.- Wait and see. Good luck with it.
0:08:28 > 0:08:31- So nice to meet you, Kumi. Thank you.- Thank you.
0:08:31 > 0:08:35Something tells me Bill and Kumi are going to end up moving into
0:08:35 > 0:08:37one of these flats. I just know it.
0:08:37 > 0:08:41They are so taken with this square. I can see why.
0:08:41 > 0:08:45But, as ever, everything is subject to planning.
0:08:45 > 0:08:48Will they get the go-ahead for the two flats?
0:08:48 > 0:08:51You can find out what happens later on in the program.
0:08:54 > 0:08:58I'm in the dynamic conurbation that is Stoke-on-Trent.
0:08:58 > 0:09:02I'm here to see a very traditional mid terrace
0:09:02 > 0:09:05in this row of similar properties.
0:09:05 > 0:09:09Good, solid housing stock. Make great homes or investment properties.
0:09:09 > 0:09:12This is it. The guide price was £45,000.
0:09:12 > 0:09:13Let's take a look inside.
0:09:15 > 0:09:19Well, you're certainly protected from the elements by a variety of doors.
0:09:19 > 0:09:22You've got this porch thing going on then through to the main door,
0:09:22 > 0:09:25but it doesn't half make getting in a bit of a struggle.
0:09:25 > 0:09:27And squeaks like you wouldn't believe.
0:09:27 > 0:09:30And I just know if this is going to be a running theme of this house,
0:09:30 > 0:09:32because you come into this little corridor
0:09:32 > 0:09:34and there's this stud partition.
0:09:34 > 0:09:38I would've expected to walk straight in from there into the front room.
0:09:38 > 0:09:41And certainly with the addition of that porch, you don't need
0:09:41 > 0:09:46to have this wall here, but it is only a bit of wood and plasterboard,
0:09:46 > 0:09:49so get rid of that, open this up.
0:09:49 > 0:09:51Because at the moment, what could potentially be
0:09:51 > 0:09:55a nice little front room is actually horribly claustrophobic.
0:09:57 > 0:10:01Not only is it light on space, the decor isn't what
0:10:01 > 0:10:05you would expect either - black and white tiles and that parquet floor.
0:10:05 > 0:10:07It's got a bit of a '30s theme going on
0:10:07 > 0:10:12and there's definitely a door theme going on too - here's yet another.
0:10:12 > 0:10:15I've never seen anything like that before. How very strange.
0:10:15 > 0:10:20It's like a semi-cellar. It's not really, is it? How odd.
0:10:20 > 0:10:25Strange things, properties, but through to the rear sitting room.
0:10:25 > 0:10:28Actually, this room at last feels a little bit more open.
0:10:28 > 0:10:31Chance to breathe. Another very interesting fireplace.
0:10:31 > 0:10:35Stairs up to your bedrooms and then, very traditional layout, through
0:10:35 > 0:10:38to the rear of the property where you've got the kitchen.
0:10:38 > 0:10:43Um, well, you know, it could be nice. At the moment, er...
0:10:46 > 0:10:50Why on earth would you do that - paint the ceiling gloss brown?
0:10:50 > 0:10:56Anyway, kitchen, yes, it could be nice, and then through to the loo
0:10:56 > 0:11:00and the bathroom. Just all needs a bit of work.
0:11:00 > 0:11:04Basically, this house looks pretty sound and pretty standard,
0:11:04 > 0:11:09despite the fact that the decor seems to have come from the era that style
0:11:09 > 0:11:12forgot, when brown ceilings were all the rage.
0:11:12 > 0:11:17When was that exactly? Will upstairs be pretty standard too?
0:11:17 > 0:11:20Yep. Two bedrooms.
0:11:20 > 0:11:23# And that's typical... #
0:11:23 > 0:11:28Just as you would expect - two decent-sized bedrooms, no bathroom
0:11:28 > 0:11:30and some tired decor.
0:11:30 > 0:11:34Well, out the back of the property and what would have originally been
0:11:34 > 0:11:37a yard area of a two-up two-down terrace
0:11:37 > 0:11:41has been filled with probably the most popular and typical
0:11:41 > 0:11:44extension in the country - single storey,
0:11:44 > 0:11:47which houses the kitchen and the bathroom.
0:11:47 > 0:11:51Um, yes, it makes perfect sense. This out here, not in bad nick.
0:11:51 > 0:11:53Nice that you've got the alleyway at the back there.
0:11:53 > 0:11:57While you're up there, by the way, just check the roof,
0:11:57 > 0:12:00cos I can't see what kind of state it's in.
0:12:00 > 0:12:01# And that's typical... #
0:12:01 > 0:12:05And an initial look at the roof shows it might need some work,
0:12:05 > 0:12:07so best get someone to look at it.
0:12:07 > 0:12:09# And that's typical... #
0:12:09 > 0:12:13The backyard, like the inside, also needs a bit of sprucing up,
0:12:13 > 0:12:16but I think it's all pretty straightforward.
0:12:16 > 0:12:19If you were to buy this to let, you might keep the layout as is
0:12:19 > 0:12:20and just renovate it.
0:12:20 > 0:12:23If you wanted to make it your home,
0:12:23 > 0:12:25you might think about some layout changes.
0:12:25 > 0:12:27# And that's typical... #
0:12:30 > 0:12:34But what does a local estate agent thing about this two-up two-down?
0:12:35 > 0:12:39The main challenge of this property is to bring it to an up-to-date
0:12:39 > 0:12:43standard which would certainly require new kitchen, new bathroom,
0:12:43 > 0:12:45decor throughout.
0:12:45 > 0:12:47There does seem to be some signs of damp as well,
0:12:47 > 0:12:51so it possibly needs a damp-proof course and possibly a rewire.
0:12:51 > 0:12:56And after all that had been carried out, what could this house,
0:12:56 > 0:12:59that was guided at £40,000, be worth?
0:13:01 > 0:13:06I would anticipate a resale value in the region of £75,000.
0:13:06 > 0:13:10That sounds encouraging. What about rental?
0:13:10 > 0:13:13I would anticipate a rental income in the region
0:13:13 > 0:13:15of £450 per calendar month.
0:13:17 > 0:13:19So not too many surprises with this one.
0:13:19 > 0:13:25A fairly standard terraced house just in need of some sorting out.
0:13:25 > 0:13:28Let's see who fancied it when it went under the hammer.
0:13:29 > 0:13:33Mid terraced house, two bed, popular spot, double glazing,
0:13:33 > 0:13:36two reception rooms. So can we start the bid at 32?
0:13:36 > 0:13:3932 right at the back of the room. £32,000.
0:13:39 > 0:13:43Right at the back of the room. Have we got 34? 34 bid now.
0:13:43 > 0:13:4734. 36? £36,000.
0:13:47 > 0:13:5038? £38,000. I'll go in ones if it helps.
0:13:50 > 0:13:53Can we say 39? At...
0:13:53 > 0:13:5539, new bidder. 39,000.
0:13:55 > 0:14:0040? £40,000. 41?
0:14:00 > 0:14:04£41,000. 42?
0:14:04 > 0:14:08Somebody in the aisle. 42? 42 at the back. 43?
0:14:08 > 0:14:1344. 45. 46.
0:14:13 > 0:14:1547. 48.
0:14:16 > 0:14:19No? 48 still seated. Somebody at the back?
0:14:19 > 0:14:23No. 48 still with you seated. At £48,000.
0:14:23 > 0:14:27Another one anywhere else? If not, selling it at £48,000.
0:14:27 > 0:14:30For the first time at £48,000.
0:14:30 > 0:14:33For the second time. Third and final time.
0:14:33 > 0:14:35Bid seated. No mistake at 48,000...
0:14:35 > 0:14:37You bought it, sir. Well done.
0:14:37 > 0:14:40£48,000 secured the Birches Head terrace,
0:14:40 > 0:14:42which was bought by Nick and Cloge.
0:14:45 > 0:14:47I met them at the house to find out
0:14:47 > 0:14:49what drew them to a property in Stoke.
0:14:50 > 0:14:54- Nick, Cloge, great to meet you both. - Nice to meet you.- Nice to meet you.
0:14:54 > 0:14:57- Congratulations.- Thank you.- Tell me why you wanted to buy this place.
0:14:57 > 0:15:01As an investment. We just want to try, you know.
0:15:01 > 0:15:03Nick's always wanted to do something like this.
0:15:03 > 0:15:07I wanted to do it. So we went ahead and bought it.
0:15:07 > 0:15:12- Are you mates or what?- Son-in-law. - Oh, right.- Son-in-law.- Got it.
0:15:12 > 0:15:16And did that come about over a Sunday family gathering or something?
0:15:16 > 0:15:17- Yeah, it did. Yeah. - Yeah, pretty much.
0:15:17 > 0:15:20- Oh, great.- It was kind of more or less me that wanted to do it.
0:15:20 > 0:15:23- He didn't really want to. - Right, but you've drafted him in.
0:15:23 > 0:15:26- Yep, drafted him in. Yep. - Kicking and screaming.- Yeah.
0:15:26 > 0:15:29Cloge has started to build a portfolio
0:15:29 > 0:15:31for some income and for a retirement fund.
0:15:31 > 0:15:36He used to work in a car body repair shop but is now focusing on property.
0:15:36 > 0:15:39With one already in this street under his belt,
0:15:39 > 0:15:42he must know what to expect with these houses.
0:15:42 > 0:15:46- So, have you got a builder's type DIY background?- No.
0:15:46 > 0:15:48DIY background, but obviously for the major stuff -
0:15:48 > 0:15:51electrics, damp course, anything like that - I'll get a tradesman in.
0:15:51 > 0:15:53The central heating, I'll get people in.
0:15:53 > 0:15:55Checking the electrics, I'll get people in to do that.
0:15:55 > 0:15:58With the rest, I'll be knocking down, the painting,
0:15:58 > 0:16:01the decorating and bits and pieces, you know, I can do that myself.
0:16:01 > 0:16:05- Do you both have jobs when you're not doing this?- I do. I do.
0:16:05 > 0:16:10- He's semi-retired.- Right. What do you do?- I work for a local bookmaker.
0:16:10 > 0:16:13So are you betting on this being a success, are you?
0:16:13 > 0:16:14It should be, yeah.
0:16:14 > 0:16:17- What's the first thing you're going to do?- Get these nice carpets up.
0:16:17 > 0:16:20Right. What's the budget for the work?
0:16:20 > 0:16:22- 10,000 to 12,000. - Right. And timescale?
0:16:22 > 0:16:25- Three to four months. Probably the four months.- Right.
0:16:25 > 0:16:28- Well, all interesting stuff. Congratulations.- Thank you.
0:16:28 > 0:16:30- Good luck to you both. - Thanks very much.
0:16:30 > 0:16:33- Look forward to seeing how you get on.- Thank you very much. Thank you.
0:16:33 > 0:16:37So what odds would you give Nick and Cloge
0:16:37 > 0:16:39on making a success of this place?
0:16:39 > 0:16:41Oh, I think fairly good ones.
0:16:41 > 0:16:43Find out how they get on later in the show.
0:16:47 > 0:16:50Well, making the right design decisions when it comes to doing up
0:16:50 > 0:16:53a property isn't just about choosing the paint colour.
0:16:53 > 0:16:55It can actually seriously affect your profits.
0:16:55 > 0:17:00Transforming your ideas into a reality can be a thrill,
0:17:00 > 0:17:02but did our buyers get it right?
0:17:02 > 0:17:04Let's go back and find out.
0:17:05 > 0:17:08We're off to the south-west London area of Vauxhall.
0:17:10 > 0:17:13Described as two non-self-contained flats,
0:17:13 > 0:17:15it was a number of higgledy-piggledy rooms
0:17:15 > 0:17:19spread over the first, second and third floors
0:17:19 > 0:17:22of a lovely old brick-fronted building.
0:17:22 > 0:17:28And it was bought at auction for 360,000 by Bill and his wife Kumi
0:17:28 > 0:17:30as part of their property development sideline.
0:17:30 > 0:17:35It's a fantastic building but it's just a bit confused on the inside.
0:17:35 > 0:17:40So what are you two going to do to get the most out of it?
0:17:40 > 0:17:42Well, the possibility is
0:17:42 > 0:17:45one property, two floors, with the roof garden,
0:17:45 > 0:17:48or two flats, so one floor each.
0:17:48 > 0:17:51We haven't decided on that yet.
0:17:51 > 0:17:53Despite having no definite plans,
0:17:53 > 0:17:56they hope to complete the full renovation in nine months
0:17:56 > 0:18:00and on a budget of £150,000.
0:18:02 > 0:18:06Now, over two years and three months later,
0:18:06 > 0:18:11we're back with Bill and Kumi to see what they ended up with.
0:18:13 > 0:18:19Wow. Wow! They've certainly upped the whole building's kerb appeal.
0:18:20 > 0:18:22So let's go through the communal entrance
0:18:22 > 0:18:25and see what they've done upstairs.
0:18:25 > 0:18:29Well, we got planning permission to make it official - two flats,
0:18:29 > 0:18:31which is really what we wanted to do,
0:18:31 > 0:18:34which obviously gives a better return on the project.
0:18:35 > 0:18:39So now on the first floor there's a one-bedroom self-contained flat.
0:18:45 > 0:18:48Well, that is impressive,
0:18:48 > 0:18:52with fantastic period features and high-quality flooring.
0:18:52 > 0:18:56But in the corner of the room, there are steps. Where are they going to?
0:19:00 > 0:19:04Now, that's an amazing kitchen space.
0:19:05 > 0:19:07This is the first-floor kitchen,
0:19:07 > 0:19:10coming from the first-floor lounge area.
0:19:10 > 0:19:15And this is quite a big kitchen for a one-bedroom flat.
0:19:15 > 0:19:19Because I love cooking, I really like space here.
0:19:23 > 0:19:26There's a small cloakroom off Kumi's spacious kitchen
0:19:26 > 0:19:30and then onto a fab bedroom.
0:19:36 > 0:19:39There's an impressive ensuite bathroom.
0:19:39 > 0:19:41And it's up a flight of stairs to what is now
0:19:41 > 0:19:44the two-bedroom flat on the upper floor.
0:19:46 > 0:19:49Remember that rather sorry rundown living area?
0:19:50 > 0:19:53Well, just take a look at it now.
0:19:55 > 0:19:59Well, this is the living area for the top flat.
0:19:59 > 0:20:01And I think the most obvious thing we've done here
0:20:01 > 0:20:04is we've taken the ceiling out and we've got a vaulted ceiling now.
0:20:05 > 0:20:08To go with that fabulous kitchen-diner,
0:20:08 > 0:20:11there's the two bedrooms and both are ensuite.
0:20:12 > 0:20:15There's even a storage room in the loft space.
0:20:15 > 0:20:19Kumi and Bill have really eked out every inch of this building.
0:20:19 > 0:20:24But why has it taken over a year and a half longer than planned?
0:20:24 > 0:20:26I think the main problem is that
0:20:26 > 0:20:27it took us a year and three-quarters
0:20:27 > 0:20:30to actually get power into the building.
0:20:30 > 0:20:33It wasn't just the power that caused some problems.
0:20:33 > 0:20:35They were also delayed by planning issues
0:20:35 > 0:20:40and whether the roof terrace was a terrace or just a roof.
0:20:41 > 0:20:43Having finally resolved all the issues,
0:20:43 > 0:20:45they've ended up with two great properties.
0:20:45 > 0:20:48So what's the plan now?
0:20:48 > 0:20:51Originally the idea was about investment.
0:20:51 > 0:20:54But since we started doing this project,
0:20:54 > 0:20:58we really started falling in love with the square, the house.
0:20:58 > 0:21:03So we would like to move in into one of the flats.
0:21:03 > 0:21:07But we have so much stuff. I have a grand piano.
0:21:07 > 0:21:11So one of the flats would not be big enough for us for long-term.
0:21:11 > 0:21:14So what we would like to do is, having moved here,
0:21:14 > 0:21:17we look for another property in the square
0:21:17 > 0:21:20and when there is a nice house, we move in there.
0:21:21 > 0:21:25Yes, I always thought they just might be tempted.
0:21:25 > 0:21:29While Kumi might not feel there's enough space for a grand piano,
0:21:29 > 0:21:32I would guess this conversion has cost a grand or two.
0:21:32 > 0:21:35So does Bill know what the total bill is?
0:21:36 > 0:21:38I know exactly how much we spent, down to the penny,
0:21:38 > 0:21:40because I keep a log of it.
0:21:40 > 0:21:46And it's, uh, by the time we've paid the bills, it'll be 300,000.
0:21:46 > 0:21:51£300,000 is a doubling of their original £150,000 budget.
0:21:51 > 0:21:55And with the £360,000 purchase price,
0:21:55 > 0:22:00their total investment without taxes and fees is now 660,000.
0:22:00 > 0:22:03Has it been worth going for that high-end finish?
0:22:03 > 0:22:06What do two local estate agents think?
0:22:07 > 0:22:09Well, for this flat, from a value point of view,
0:22:09 > 0:22:13I'd be suggesting putting it onto the market at about £450,000.
0:22:13 > 0:22:18I'd say you would push it to go onto the market at £450,000.
0:22:18 > 0:22:21And what about the upper two-bed flat?
0:22:21 > 0:22:25You'd probably have to put that property on the market for £650,000.
0:22:25 > 0:22:28The two-bed flat upstairs with that roof terrace is exceptional
0:22:28 > 0:22:30and I'd sort of stick my neck out
0:22:30 > 0:22:35and suggest £650,000-£660,000 in the asking price on that one.
0:22:36 > 0:22:39Well, those figures could potentially see
0:22:39 > 0:22:43a combined value for the two flats of over a million pounds!
0:22:43 > 0:22:48That's a pre-tax profit of up to £450,000. Wow!
0:22:48 > 0:22:52I think the flats are gorgeous, and I'm so impressed.
0:22:52 > 0:22:54What do they think about that?
0:22:54 > 0:22:57- Good news.- Yeah, I think we'll sleep well tonight.
0:23:00 > 0:23:03It was in Stoke-on-Trent in Staffordshire where
0:23:03 > 0:23:08we first saw a two-bedroom mid-terrace house.
0:23:08 > 0:23:13And though there was less than an ideal downstairs bathroom,
0:23:13 > 0:23:16the two bedrooms really didn't lend themselves to any layout changes,
0:23:16 > 0:23:21so in essence, the place just needed a full refurbishment.
0:23:21 > 0:23:26That suited Cloge and his American son-in-law, Nick.
0:23:26 > 0:23:28Tell me why you wanted to buy this place?
0:23:28 > 0:23:31Um, as an investment. We just want to try, you know.
0:23:31 > 0:23:35Nick's always wanted to do something like this, I've wanted to do it,
0:23:35 > 0:23:38so we went ahead and bought it.
0:23:38 > 0:23:42And did that come about over a Sunday family gathering or something?
0:23:42 > 0:23:44- Yeah, it did. - Yeah, yeah, pretty much.
0:23:44 > 0:23:46# Well, I talk about it Talk about it
0:23:46 > 0:23:48# Talk about it Talk about it... #
0:23:48 > 0:23:49Well, they say talk is cheap,
0:23:49 > 0:23:54but in this case, their little chat cost Cloge and Nick £48,000 to buy
0:23:54 > 0:23:57the house at auction, and then there was going to be
0:23:57 > 0:24:00an additional £10,000 to £12,000 to do the refurbishment.
0:24:00 > 0:24:04The plan was to complete the work in three to four months,
0:24:04 > 0:24:07with Cloge doing most of the work himself,
0:24:07 > 0:24:09while rookie Nick helped out where he could.
0:24:13 > 0:24:18And now, five and a half months later, we're back with Cloge, Nick
0:24:18 > 0:24:22and Nick's young son, Phoenix, to check on progress.
0:24:25 > 0:24:29Well, no real changes outside, but it was the inside that needed them
0:24:29 > 0:24:32to roll up their sleeves and crack on.
0:24:34 > 0:24:36Hey, and talk about changes.
0:24:36 > 0:24:39Removing the hallway has really opened up the front room.
0:24:42 > 0:24:44And the rear reception room's not bad, either.
0:24:44 > 0:24:47But what about that all-important kitchen?
0:24:52 > 0:24:54And bathroom?
0:24:58 > 0:24:59Great job, lads.
0:24:59 > 0:25:03The two upstairs bedrooms have been spruced up and are ready to go.
0:25:05 > 0:25:08So, how has it been?
0:25:08 > 0:25:11We spent...we must have spent about a month just cleaning everything out.
0:25:11 > 0:25:14We didn't order a skip straightaway, we just got some bags,
0:25:14 > 0:25:17- some rubble bags, and we put all the rubbish in the rubble bags, didn't we?- Yeah.
0:25:17 > 0:25:20And we put them outside, so we got about 50, 60 rubble bags outside.
0:25:20 > 0:25:23Then we ordered the skip and went to pick up the rubble bags
0:25:23 > 0:25:26and didn't realise they were biodegradable and we couldn't lift
0:25:26 > 0:25:29- nothing up, so it was like double the job, weren't it?- That was, yeah.
0:25:29 > 0:25:31That was a bit of a laugh, but apart from that,
0:25:31 > 0:25:33everything else has gone pretty OK.
0:25:33 > 0:25:37Bit of a laugh? Yeah. That sounds like bags of fun.
0:25:37 > 0:25:41But I think they've done a top job, particularly in the kitchen
0:25:41 > 0:25:43and in the bathroom.
0:25:43 > 0:25:45Well, the bathroom and the kitchen,
0:25:45 > 0:25:47it was actually all designed by my wife.
0:25:47 > 0:25:49What she did is she drew it down and says,
0:25:49 > 0:25:52"I want you to do it this way," and I have to do exactly what
0:25:52 > 0:25:55she tells me to do, because inevitably I'll get it wrong.
0:25:55 > 0:25:57I would come down and just crack the whip
0:25:57 > 0:26:01when he wasn't doing what he was meant to be doing, so, uh...
0:26:02 > 0:26:04All right. Crikey.
0:26:04 > 0:26:08Poor old Cloge sounds like he was having to take orders from all sides.
0:26:08 > 0:26:12When he wasn't doing the work on the house, he was babysitting one of his
0:26:12 > 0:26:17seven grandchildren, and it seems THAT role might be getting even busier.
0:26:17 > 0:26:19My wife's expecting our second child,
0:26:19 > 0:26:22so, six months and she'll have the baby.
0:26:22 > 0:26:25We don't know what it is yet, so...but as soon as it's born,
0:26:25 > 0:26:28we'll have it down to the next property and earning its keep.
0:26:28 > 0:26:29BOTH LAUGH
0:26:29 > 0:26:32Yep, that's it, start them young.
0:26:32 > 0:26:36So, has getting the whole family involved kept costs down?
0:26:36 > 0:26:38- We have actually spent £12,000 on it.- £12,000, yeah.
0:26:38 > 0:26:41Got probably a bit more to spend, maybe another £500, £600,
0:26:41 > 0:26:47maybe £1,000, but we...I'm pleased, really, with the budget, because, you know, we're very close to it.
0:26:47 > 0:26:52Assuming a final budget of around £13,000,
0:26:52 > 0:26:54with a £48,000 purchase price,
0:26:54 > 0:27:00their total costs, without taxes and fees, would be £61,000.
0:27:00 > 0:27:05Does that add up to a successful start for this family team?
0:27:05 > 0:27:08What did two local estate agents think?
0:27:08 > 0:27:12The likely rental income for the property would be in the region
0:27:12 > 0:27:14of £425 per calendar month.
0:27:14 > 0:27:18I'd put this property on the market for £395 per calendar month.
0:27:18 > 0:27:24Even the lower £395 per calendar month would generate a rental
0:27:24 > 0:27:26yield above 7%. Not bad.
0:27:26 > 0:27:29Now, more importantly, how would the house Cloge
0:27:29 > 0:27:34and Nick have invested £61,000 in fare on the resale market?
0:27:34 > 0:27:36I would place this property on the open
0:27:36 > 0:27:39market in the region of £75,000.
0:27:39 > 0:27:43I would put this property on the market at £73,000.
0:27:43 > 0:27:45Well, that's roughly what we expected, yeah.
0:27:45 > 0:27:47That's about right, yeah. We're happy at that.
0:27:47 > 0:27:52So, potential pre-tax profit between £12,000 and £14,000.
0:27:52 > 0:27:55Not bad for starters.
0:27:55 > 0:27:57So, is that enough encouragement for them
0:27:57 > 0:27:59to continue with property developing?
0:28:01 > 0:28:05Definitely, yeah, we've enjoyed it. I've had some good fun. Nick's enjoyed it.
0:28:05 > 0:28:07He's learned a few things, so I'd definitely do it again.
0:28:10 > 0:28:13We hope you've enjoyed our insight into the world of auctions.
0:28:13 > 0:28:17Yes, make sure you join us for more, next time on Homes Under the Hammer.
0:28:17 > 0:28:18- See you then.- Goodbye.- Goodbye.