0:00:02 > 0:00:04Despite slightly confused market conditions,
0:00:04 > 0:00:07people still want to grab a slice of the property action.
0:00:07 > 0:00:09And if you are prepared to take the plunge,
0:00:09 > 0:00:11auctions are a great place to start.
0:00:11 > 0:00:13It can be fast, it can be frantic,
0:00:13 > 0:00:16but it's interesting to buy your home under the hammer.
0:00:42 > 0:00:46Now, this show isn't just about bricks and mortar,
0:00:46 > 0:00:49it's about real people with real stories to tell
0:00:49 > 0:00:52- and we never know how things are going to turn out.- Is it a dream?
0:00:52 > 0:00:54Is it a nightmare?
0:00:54 > 0:00:57Stay with us as we follow more lots which sold at auction.
0:00:59 > 0:01:00In Stratford, east London,
0:01:00 > 0:01:04the third bedroom in this flat is just a bit on the tight side.
0:01:04 > 0:01:07Look, I can touch either side.
0:01:08 > 0:01:10In the north-east, near Gateshead,
0:01:10 > 0:01:13this semidetached house appears to have a pressing problem.
0:01:13 > 0:01:15I've just noticed this on the carpet.
0:01:15 > 0:01:17Somebody having a bad day with an iron.
0:01:19 > 0:01:21These properties have been sold at auction.
0:01:21 > 0:01:24We'll find out who bought them and what they paid for them
0:01:24 > 0:01:26when they went under the hammer.
0:01:26 > 0:01:27Sold!
0:01:34 > 0:01:36This is Stratford in east London,
0:01:36 > 0:01:39home to the 2012 Olympic and Paralympic Stadium
0:01:39 > 0:01:42and now an area with thousands of new homes,
0:01:42 > 0:01:45fabulous transport links and a mega shopping centre.
0:01:45 > 0:01:48In fact, it sort of has the feeling of a new town
0:01:48 > 0:01:50rather than an old one.
0:01:50 > 0:01:52Well, if you were after urban,
0:01:52 > 0:01:54you will be happy with this location.
0:01:54 > 0:01:56Railway line just over that wall,
0:01:56 > 0:02:01busy road in-between and Stratford itself only 15 minutes that way.
0:02:01 > 0:02:05Now, it's undoubtedly going to be noisy at times but, hey,
0:02:05 > 0:02:08you'll know that before you even walk in the door.
0:02:08 > 0:02:09So, the property itself is this.
0:02:09 > 0:02:11It's a first floor three-bedroom flat
0:02:11 > 0:02:15and it had a guide price of £140,000.
0:02:20 > 0:02:23Well, what a nice surprise. Loads of space up here.
0:02:23 > 0:02:25You've got three rooms to the front of the property,
0:02:25 > 0:02:27this nice little corridor,
0:02:27 > 0:02:31and then at the back, I'm presuming this is a reception room.
0:02:31 > 0:02:34What have we got through here? Little bathroom.
0:02:34 > 0:02:37A bit disappointing, it's a bit on the small side,
0:02:37 > 0:02:40but it's nice and quiet, nice big window as well,
0:02:40 > 0:02:43and then right at the back, you've got the kitchen.
0:02:43 > 0:02:48Now, this certainly needs some redesigning. What have we got here?
0:02:48 > 0:02:52Oh, a bonus room, everybody likes to see this.
0:02:52 > 0:02:55Now, that gets me a bit excited because potentially,
0:02:55 > 0:02:58you could think about opening this space up
0:02:58 > 0:03:01and having a much nicer kitchen, little utility area,
0:03:01 > 0:03:04you could even think about going through into there.
0:03:04 > 0:03:07So, what you thought was a very poky, small reception room
0:03:07 > 0:03:12has now turned into a nice big kitchen/dining/entertaining space.
0:03:13 > 0:03:15This surprise room also has some stairs
0:03:15 > 0:03:19which leads down to a small garden at the rear.
0:03:19 > 0:03:22The three front bedrooms all seem to have a fair bit of wear and tear
0:03:22 > 0:03:26while one of the larger rooms looks like it's got a damp problem.
0:03:26 > 0:03:31Now, this is a teeny weenie third bedroom by anyone's standards.
0:03:31 > 0:03:35A single bed measures three foot by six footish
0:03:35 > 0:03:39and if you think your arm span is the same as your height,
0:03:39 > 0:03:43well, I'm five foot five, and look, I can touch either side.
0:03:43 > 0:03:46You will not get a bed in here.
0:03:46 > 0:03:50I reckon this is a study or a cot room at best
0:03:50 > 0:03:54and you would struggle to rent this out to a separate individual.
0:03:56 > 0:04:00I'd say it's more of a 2.5 than a three-bedder. So, the solution?
0:04:00 > 0:04:02Well, you could reconfigure the layout,
0:04:02 > 0:04:05have the living room and kitchen at the front
0:04:05 > 0:04:09and turn the rear rooms into two decent-sized bedrooms.
0:04:09 > 0:04:10Or you could think bigger.
0:04:10 > 0:04:15I've been told that the loft space comes with this flat -
0:04:15 > 0:04:17ie, it's included in the deeds -
0:04:17 > 0:04:20and you own the roof and the void space above.
0:04:20 > 0:04:24Great, if that is the case, although I would check thoroughly,
0:04:24 > 0:04:28as some vendors have been known to assume they own it
0:04:28 > 0:04:31just because it's only them who have access.
0:04:31 > 0:04:35But if you do, there's a clear opportunity to extend up there,
0:04:35 > 0:04:39make this a proper three-bedroom and increase the value.
0:04:39 > 0:04:41Loft conversions of course, well, they don't come cheap.
0:04:41 > 0:04:45So, would it be worth splashing the cash on this one?
0:04:45 > 0:04:49A local estate agent came along to give us his opinion.
0:04:49 > 0:04:52Realistically, can you call this a three-bed flat?
0:04:52 > 0:04:55You can class it as three bed because it's got its own window
0:04:55 > 0:04:58but realistically, it's two bedroom plus a study.
0:04:58 > 0:05:02So, with that 140,000 guide price,
0:05:02 > 0:05:04what sort of returns could the flat make?
0:05:04 > 0:05:06If it was fully renovated,
0:05:06 > 0:05:10I'd personally value it between £200,000-£205,000.
0:05:10 > 0:05:14The agent also reckons that rental returns
0:05:14 > 0:05:17of £1,300-£1,350 pcm are possible,
0:05:17 > 0:05:21but how much value could a loft conversion add to this property?
0:05:21 > 0:05:25If it was just a loft extension, with a loft room, with an en-suite,
0:05:25 > 0:05:29potentially around 10, 15,000, whereas, if it was a dormer,
0:05:29 > 0:05:31which would cost a little bit more money,
0:05:31 > 0:05:33you can potentially add another 25,000.
0:05:33 > 0:05:35And the rentals?
0:05:35 > 0:05:37Per calendar month with an extra bedroom,
0:05:37 > 0:05:40you're looking at around another £300 extra.
0:05:41 > 0:05:44A reasonably priced flat in an affordable area
0:05:44 > 0:05:46with heaps of scope to improve.
0:05:46 > 0:05:48Let's see who went for it at the auction.
0:05:52 > 0:05:57Lot 89, invite your bids on this, 170 anywhere?
0:05:57 > 0:05:59If not, you tell me.
0:05:59 > 0:06:05Thank you. 150 I've got. 151 anywhere? Thank you. 151, 152.
0:06:05 > 0:06:11153, 154, 155. 156.
0:06:11 > 0:06:16157. 158. 159. More competition.
0:06:16 > 0:06:23159. 160. 161. 162. 163.
0:06:23 > 0:06:28164. 165. One more?
0:06:28 > 0:06:32Rounded off, 166, £165,000.
0:06:32 > 0:06:37Anybody else? If not, 165 for the first.
0:06:37 > 0:06:39165 for the second.
0:06:39 > 0:06:42165 for the third and final time.
0:06:42 > 0:06:45All done? Sold. 165. Well done.
0:06:46 > 0:06:50And the successful bidders were married couple Ilie and Joanna.
0:06:51 > 0:06:55Joanna is from Lithuania while her husband Ilie is Albanian
0:06:55 > 0:06:57and together, they help run a restaurant
0:06:57 > 0:06:59and Ilie's building company.
0:06:59 > 0:07:02I met them back at the flat to find out exactly what they had planned
0:07:02 > 0:07:04to serve up with this property.
0:07:04 > 0:07:06Guys, congratulations, lovely to meet you today.
0:07:06 > 0:07:08How much did you want this flat, Joanna?
0:07:08 > 0:07:11Well, we had a few properties in mind
0:07:11 > 0:07:13and this one was one of our favourites
0:07:13 > 0:07:16so, we came to see it twice which was,
0:07:16 > 0:07:19which was only one property that we went to see twice
0:07:19 > 0:07:21so we went for it.
0:07:21 > 0:07:24So, what is it about the flat that you like so much? Tell me.
0:07:24 > 0:07:28First, it is the location. Second, it's the size.
0:07:28 > 0:07:31Third is the roof which is massive, like, really good height.
0:07:31 > 0:07:35You can get...you can convert into a loft conversion. And that's it.
0:07:35 > 0:07:38So, interestingly, you've spotted the potential straight away
0:07:38 > 0:07:42which would be to go up into the loft but my next question,
0:07:42 > 0:07:44guys, do you know that you own the loft space?
0:07:44 > 0:07:46Have you checked it out?
0:07:46 > 0:07:49We did. We checked with the neighbour.
0:07:49 > 0:07:52We've checked with the solicitor and they said it belongs to us
0:07:52 > 0:07:56- so, hopefully, it's all good. - So, Ilie, tell me what you do.
0:07:56 > 0:07:59- I've got a building company, loft conversion company.- I love it!
0:07:59 > 0:08:01You've got a loft conversion company!
0:08:01 > 0:08:04I hope you can do the loft. Why wouldn't you want to do that?
0:08:04 > 0:08:07Ah, now it all makes sense.
0:08:07 > 0:08:10What about any structural work down here?
0:08:10 > 0:08:13You've got a kitchen that doesn't really work very well.
0:08:13 > 0:08:14Little odd utility room.
0:08:14 > 0:08:16How are you going to make the best of this space at the back?
0:08:16 > 0:08:18Well, I've looked at the chimney.
0:08:18 > 0:08:20It seems not to be doing anything at the moment.
0:08:20 > 0:08:23I have to check with the people downstairs as well,
0:08:23 > 0:08:26but I think that we can possibly remove it all off
0:08:26 > 0:08:30- and just have an open, like, a big open space there.- Wow.
0:08:30 > 0:08:32That is going to be fantastic
0:08:32 > 0:08:34because this isn't the biggest of rooms.
0:08:34 > 0:08:36If you can open it up, it will be fantastic.
0:08:36 > 0:08:38And what about the front rooms?
0:08:38 > 0:08:40Basically, rewiring has got to be done
0:08:40 > 0:08:41and some of the plumbing bits,
0:08:41 > 0:08:43but I think in terms of opening them up,
0:08:43 > 0:08:46I'm not sure we're going to do that, probably keep it the way it is.
0:08:46 > 0:08:49They aim to spend £10,000 renovating the flat
0:08:49 > 0:08:52with £20,000 ready for the loft conversion.
0:08:52 > 0:08:56While Ilie will be getting his hands dirty and project managing,
0:08:56 > 0:08:59qualified professionals will be called in for any plumbing
0:08:59 > 0:09:02and electrics that needs seeing to.
0:09:02 > 0:09:04How involved are you going to be, Joanna?
0:09:04 > 0:09:06Well, I'll just look for cheap materials.
0:09:06 > 0:09:10That's going to be my job, to find the best prices in the market.
0:09:10 > 0:09:14But he's going to be managing the team and that's going to
0:09:14 > 0:09:18- be his responsibility, to do a good job on that.- Probably colours.
0:09:18 > 0:09:20Yeah, colours and design is going to be mine, definitely.
0:09:20 > 0:09:23- Is that what you enjoy doing? - Yeah, I love it, I love it, so...
0:09:23 > 0:09:26Guys, good luck with this. I can wait to see the outcome.
0:09:26 > 0:09:29- Congratulations. Well done. - Thank you very much.
0:09:29 > 0:09:31So, a restaurant, a building company
0:09:31 > 0:09:34and a development on the side.
0:09:34 > 0:09:36Joanna and Ilie have a busy time ahead
0:09:36 > 0:09:41and a real opportunity to make the most of this tired flat.
0:09:41 > 0:09:43Find out how it all goes
0:09:43 > 0:09:46and if they do own the loft space later in the show.
0:09:49 > 0:09:51I'm in the northeast of England.
0:09:51 > 0:09:56Three miles from Gateshead, four miles from Newcastle upon Tyne.
0:09:56 > 0:09:58This is Whickham - what's on offer?
0:09:58 > 0:09:59Let's find out.
0:10:00 > 0:10:03This area is situated in a high position which,
0:10:03 > 0:10:06on a fog-free day, overlooks the Tyne
0:10:06 > 0:10:09and I wonder while I'm on the lookout
0:10:09 > 0:10:11if I'll find a property bargain.
0:10:11 > 0:10:16So, I am in this well-liked and desirable residential area
0:10:16 > 0:10:20and sitting on this corner plot is the property I'm here to see.
0:10:20 > 0:10:24It's a 1940s/1950s semidetached, three bedrooms,
0:10:24 > 0:10:28guide price was £124,950.
0:10:28 > 0:10:30Bit precise that, isn't it?
0:10:30 > 0:10:35But look, great kerb appeal, nice driveway, manicured borders.
0:10:35 > 0:10:39Nice flowers and shrubs. Let's hope the inside matches up.
0:10:39 > 0:10:43A bit of flaking paint and some maintenance to do,
0:10:43 > 0:10:46but first impressions, very promising.
0:10:48 > 0:10:51Well...yeah, good start.
0:10:51 > 0:10:54Nice sort of open feel the moment you walk through the door.
0:10:54 > 0:10:56You got your stairs leading up to the bedrooms.
0:10:56 > 0:10:59Bit of storage there, but nice feeling of space.
0:10:59 > 0:11:03Very classic layout for this era and style of property.
0:11:03 > 0:11:07A door there leading through into your front lounge area.
0:11:07 > 0:11:09Through to your kitchen. Now, this is classic.
0:11:09 > 0:11:12This often lets this style of property down.
0:11:12 > 0:11:14It is too small for the size of the house,
0:11:14 > 0:11:17especially for today's modern living.
0:11:17 > 0:11:19So I'm thinking, immediately, taking out a few walls to
0:11:19 > 0:11:22open that really out into the dining room area there.
0:11:22 > 0:11:25Then through into the dining room. I'm laughing.
0:11:25 > 0:11:27Just noticed this on the carpet.
0:11:27 > 0:11:29Somebody having a bad day with an iron.
0:11:29 > 0:11:31Don't ever iron on the carpet!
0:11:31 > 0:11:34But more clues for the era of the property...yeah.
0:11:36 > 0:11:40Lovely, dividing doors in-between the rear dining area
0:11:40 > 0:11:42and the front living room.
0:11:42 > 0:11:44They probably want to come out, don't they?
0:11:44 > 0:11:46As does this fire.
0:11:46 > 0:11:47But what I'm seeing straightaway
0:11:47 > 0:11:51is this is just a really nice, solid house.
0:11:51 > 0:11:53Just needs a little bit of updating.
0:11:57 > 0:12:00So, upstairs and the bathroom where it should be,
0:12:00 > 0:12:02a combined bathroom and loo which is good,
0:12:02 > 0:12:04and you've got your three bedrooms.
0:12:04 > 0:12:07One at the back, a smaller one there at that front
0:12:07 > 0:12:11and this really nice-sized big double with the bay there.
0:12:11 > 0:12:14I'm laughing again because...
0:12:15 > 0:12:17Bedroom wardrobes - hm.
0:12:18 > 0:12:19Lovely.
0:12:19 > 0:12:23# Baby, let's be forgiving
0:12:23 > 0:12:25# And try to be willing
0:12:25 > 0:12:29# To listen and just let it slide. #
0:12:29 > 0:12:33What doesn't ever date, though, is space.
0:12:34 > 0:12:38Now, this is where it all gets a bit weird,
0:12:38 > 0:12:43because through this slightly small door, you come into this area.
0:12:43 > 0:12:47Now, I am actually above the garage
0:12:47 > 0:12:49and the little utility area.
0:12:49 > 0:12:52And there is this... Well, how would you describe it?
0:12:52 > 0:12:55It's a conservatory, it's a workshop,
0:12:55 > 0:12:57laid out for at the moment.
0:12:57 > 0:13:01A greenhouse? But, you know, it's space.
0:13:01 > 0:13:04Aesthetically, it's not going to win any design awards,
0:13:04 > 0:13:08and the unusual features don't stop there.
0:13:08 > 0:13:14Well, at the rear of the property, it does get very, very weird.
0:13:14 > 0:13:20Because you come out of the rear door onto this sort of decking area.
0:13:20 > 0:13:22I mean, there's a shed, there's this fence,
0:13:22 > 0:13:24and that's the neighbour's garden.
0:13:24 > 0:13:26I don't know what the history here is,
0:13:26 > 0:13:29whether this property sold its garden to build these houses,
0:13:29 > 0:13:31or the other way round, I just don't know.
0:13:31 > 0:13:36But whatever happened, it's not what you expect, is it?
0:13:36 > 0:13:38Yes, it's all a bit baffling.
0:13:38 > 0:13:41Can a local estate agent straighten me out
0:13:41 > 0:13:45on this property, guided at £124,950?
0:13:45 > 0:13:48I think this property would benefit greatly
0:13:48 > 0:13:50from an extension to the side.
0:13:50 > 0:13:54Perhaps take off the workshop on top of the garage
0:13:54 > 0:13:56and build up to make it more spacious.
0:13:56 > 0:13:59That's a fairly big job, and costly.
0:13:59 > 0:14:01So, we should think about the numbers.
0:14:01 > 0:14:04What if the buyer just went for a straight refurbishment?
0:14:04 > 0:14:07I think if this property was done to a reasonable standard,
0:14:07 > 0:14:12then you could expect to achieve about £175,000-£180,000.
0:14:12 > 0:14:16And the agent reckons that extending over the garage and adding
0:14:16 > 0:14:20another bedroom could take the resale value up to £200,000.
0:14:20 > 0:14:23But how did rental sound without an extension?
0:14:23 > 0:14:25If this property was to go onto the rental market, I would expect
0:14:25 > 0:14:30to achieve approximately £750 per calendar month.
0:14:30 > 0:14:33What do we think of this solid little house
0:14:33 > 0:14:35with its quirky little workshop?
0:14:35 > 0:14:37D'you know what? We like it a lot.
0:14:37 > 0:14:39Let's see who agreed when it went under the hammer.
0:14:39 > 0:14:44We are going to go to lot number 53. Any bid at £125,000?
0:14:44 > 0:14:48I'll take 120 to start, or we will withdraw.
0:14:48 > 0:14:52Thank you, the gentleman sitting down, at £120,000.
0:14:52 > 0:14:53122 standing.
0:14:53 > 0:14:56124? 124.
0:14:56 > 0:14:57126?
0:14:57 > 0:14:59128?
0:14:59 > 0:15:01130. 132.
0:15:01 > 0:15:04I'll take one if it will help. 1 bid, 131.
0:15:04 > 0:15:06132. 132 bid.
0:15:06 > 0:15:08133. No?
0:15:08 > 0:15:10I'll take 500. 132½.
0:15:10 > 0:15:12132½ bid.
0:15:12 > 0:15:14500 as well? 133.
0:15:14 > 0:15:16133½. No?
0:15:16 > 0:15:18New bidder at 133½.
0:15:18 > 0:15:20134.
0:15:20 > 0:15:22134½.
0:15:23 > 0:15:26134½ bid. 135?
0:15:26 > 0:15:28135½?
0:15:28 > 0:15:32No? We're going one to the 135.
0:15:32 > 0:15:35I'm going for the second time at £135,000.
0:15:35 > 0:15:41Sold to the gentleman on the back wall at £135,000.
0:15:41 > 0:15:45The bidder who looked as pleased as Punch is Paul,
0:15:45 > 0:15:47at the auction with his girlfriend Michelle.
0:15:47 > 0:15:52He got the house for £135,000 and Paul is a local lad.
0:15:52 > 0:15:54He's been buying and selling
0:15:54 > 0:15:58and refurbishing property for around 12 years.
0:15:58 > 0:16:01Prior to that, he worked in computer-aided design,
0:16:01 > 0:16:04designing and installing industrial doors.
0:16:05 > 0:16:07'I met him to find out his plans for the house.'
0:16:07 > 0:16:09- Paul, good to meet you. - Nice to meet you.
0:16:09 > 0:16:11- Congratulations. - Thank you very much.
0:16:11 > 0:16:13Tell me why you wanted to buy the house.
0:16:13 > 0:16:16Er, basically the price that I paid for it was, er,
0:16:16 > 0:16:20it was a decent price. Erm, and the location as well.
0:16:20 > 0:16:22What are you going to do with it? Is it to rent out or what?
0:16:22 > 0:16:24It's for me and my girlfriend to move into.
0:16:24 > 0:16:27What was it about this particular house that you really liked?
0:16:27 > 0:16:30I think the size, and just the potential, really.
0:16:30 > 0:16:34I think it's been well kept but it's outdated, it needs doing up.
0:16:34 > 0:16:36So tell me what you're going to do to it
0:16:36 > 0:16:38to bring it up to scratch in your eyes.
0:16:38 > 0:16:41Well, what we're going to do is, obviously, first take everything out,
0:16:41 > 0:16:43like the old wardrobes, er,
0:16:43 > 0:16:46- take the wall out between the kitchen and the dining room...- OK.
0:16:46 > 0:16:49..and then it'll be a case of getting the electricians in, getting them
0:16:49 > 0:16:53to redo the electrics, cos I think the electrics are on the way out.
0:16:53 > 0:16:56Er, it's got a new boiler in, but it's upstairs in the bathroom,
0:16:56 > 0:16:59so I want to take it down into the utility room, out of the way,
0:16:59 > 0:17:02and then the new kitchen in, new bathroom suite in.
0:17:02 > 0:17:05What kind of money have you got set aside for doing the work?
0:17:05 > 0:17:07We've got 15,000 set aside.
0:17:07 > 0:17:10Er, that's just for materials, that's not for labour,
0:17:10 > 0:17:13but, er...I'll be doing most of the work myself anyway.
0:17:13 > 0:17:14Paul's a qualified tiler
0:17:14 > 0:17:18and he can plaster and fit kitchens and bathrooms.
0:17:18 > 0:17:22But he will use a certified electrician and employ a plumber.
0:17:22 > 0:17:24He thinks the work will take around six months,
0:17:24 > 0:17:27and both he and his girlfriend Michelle have properties that they
0:17:27 > 0:17:29have to sell before they move in
0:17:29 > 0:17:31and make this their first home together.
0:17:33 > 0:17:35It seems like you've done well for sure. Congratulations.
0:17:35 > 0:17:37- Thank you very much. - Good luck with it.
0:17:37 > 0:17:40- Look forward to seeing how you get on.- Thank you very much.
0:17:40 > 0:17:43Well, I think Paul's done really well with this place.
0:17:43 > 0:17:46It's a lovely house and it just needs a little bit of modernisation.
0:17:46 > 0:17:47One thing's for sure -
0:17:47 > 0:17:51I think his tiling experience will come in very handy.
0:17:51 > 0:17:54How will he get on? You can find out later in the show.
0:17:56 > 0:18:00Well, I'm sure all our buyers hope their journey has been worth it -
0:18:00 > 0:18:02they took the right turns and avoided the pitfalls.
0:18:02 > 0:18:06Decisions, decisions, have they made the right ones?
0:18:06 > 0:18:07Let's go back and find out.
0:18:12 > 0:18:16We now head back to Stratford in East London,
0:18:16 > 0:18:19where earlier we saw this three-bedroom first floor flat,
0:18:19 > 0:18:21sold at auction for 165,000.
0:18:21 > 0:18:25It was bought by Ilie and Joanna, a busy husband and wife team
0:18:25 > 0:18:28who help to run a restaurant and Ilie's building company.
0:18:29 > 0:18:32This shabby place needed a total makeover,
0:18:32 > 0:18:35and with one of the bedrooms barely big enough for a single bed,
0:18:35 > 0:18:38Ilie and Joanna aim to convert the loft
0:18:38 > 0:18:41to create a large en-suite bedroom.
0:18:41 > 0:18:43Grand plans, indeed!
0:18:43 > 0:18:46Do you know that you own the loft space? Have you checked it out?
0:18:46 > 0:18:47Well, we checked with the neighbour,
0:18:47 > 0:18:51we've checked with the solicitor, and they said it belongs to us.
0:18:51 > 0:18:53Three-and-a-half months later,
0:18:53 > 0:18:57we are back to see what Joanna and Ilie have done with this flat.
0:18:59 > 0:19:01Well, it's certainly an impressive start.
0:19:01 > 0:19:05Ilie has taken out that chimney to open out this space beautifully
0:19:05 > 0:19:10to create a new kitchen dining room, complete with stylish new units.
0:19:10 > 0:19:13The rear reception room has been made over
0:19:13 > 0:19:15into a more relaxing space...
0:19:17 > 0:19:20..while just along the landing, a new bathroom suite
0:19:20 > 0:19:23and tiles have a real touch of class and style about them.
0:19:31 > 0:19:35And as for the three bedrooms, all made over to a high standard,
0:19:35 > 0:19:37and with the same decor,
0:19:37 > 0:19:39and with laminated flooring throughout.
0:19:41 > 0:19:44But as great as all this looks, there's one thing missing -
0:19:44 > 0:19:46there's no loft conversion.
0:19:46 > 0:19:50So does that mean that the question of who owns what
0:19:50 > 0:19:51is still up in the air?
0:19:51 > 0:19:54We do know we owned our loft space.
0:19:54 > 0:19:56We applied for planning permission,
0:19:56 > 0:20:00er, which we are due to get in the next week or so.
0:20:02 > 0:20:06With Ilie and Joanna finally securing the loft, work will
0:20:06 > 0:20:09hopefully begin soon on the second phase of transforming this flat.
0:20:09 > 0:20:13But the negotiations for the freehold also led to another
0:20:13 > 0:20:15big change to the layout.
0:20:15 > 0:20:18So when we bought the property, the kitchen was tiny.
0:20:18 > 0:20:22It had a funny room at the back, and small kitchen here,
0:20:22 > 0:20:27so we knocked the wall down and make it nice and spacious.
0:20:27 > 0:20:32We installed a new kitchen, new tiling, decoration, lighting,
0:20:32 > 0:20:34everything was done from scratch.
0:20:35 > 0:20:39And as Ilie and Joanna still plan to rent the flat out,
0:20:39 > 0:20:41the garden, which we now have access to,
0:20:41 > 0:20:44has been given the low-maintenance approach,
0:20:44 > 0:20:48with fence-to-fence, wall-to-wall decking.
0:20:48 > 0:20:52Back inside, and the flat has a great contemporary feel about it.
0:20:52 > 0:20:56But having gone to all the effort of bringing the flat back to life
0:20:56 > 0:20:58and giving it that impressive finish,
0:20:58 > 0:21:01Ilie doesn't aim to undo all the hard work
0:21:01 > 0:21:03when the loft conversion starts.
0:21:03 > 0:21:06Usually, we do most of the work from outside,
0:21:06 > 0:21:11so it doesn't really do much till the stage when we install the stairs.
0:21:11 > 0:21:14So, by that time, they will only have cut the ceiling here
0:21:14 > 0:21:19to install the stairs and then there won't be any disruption here.
0:21:19 > 0:21:21Project managing the renovation was down to Ilie,
0:21:21 > 0:21:24who didn't get his hands dirty as much as he'd anticipated,
0:21:24 > 0:21:28while Joanna contributed by digging out the best bargains
0:21:28 > 0:21:32for materials and furnishings, and decided on the final decor.'
0:21:34 > 0:21:37We wanted to put a bit of style in the property,
0:21:37 > 0:21:41because I think people are a bit tired of just magnolia walls in
0:21:41 > 0:21:44their rented properties, so we put a bit of vintage,
0:21:44 > 0:21:48retro style, which is very nowadays.
0:21:48 > 0:21:52The couple took a month's holiday before getting started
0:21:52 > 0:21:55on the flat, and managed to get it done in six weeks,
0:21:55 > 0:21:56two weeks longer than planned.
0:21:56 > 0:22:00They still anticipate the budget for the loft conversion
0:22:00 > 0:22:01to come to 20,000,
0:22:01 > 0:22:04but did the original 10 grand budget for this flat hold up?
0:22:06 > 0:22:10So far, we've spent about £15,000,
0:22:10 > 0:22:13that's including the furnishing and decoration and everything.
0:22:15 > 0:22:18Add that to their purchase price of 165,000,
0:22:18 > 0:22:23and the couple have spent £180,000 on the flat.
0:22:23 > 0:22:26Should the flat be sold, the agents reckon that this
0:22:26 > 0:22:32£180,000 investment could be sold for between 180 to 200,000.
0:22:32 > 0:22:35However, Joanna and Ilie set off on this project with
0:22:35 > 0:22:38the aim of adding it to their rental portfolio.
0:22:38 > 0:22:40They hope to get £1,400 per calendar month
0:22:40 > 0:22:42without the loft conversion,
0:22:42 > 0:22:46so I'm sure they'll be more interested in the rental values.
0:22:46 > 0:22:49As it is now, I would say 1,300 per calendar month.
0:22:49 > 0:22:54I would say in the region of £1,300 to £1,400 per calendar month.
0:22:54 > 0:22:57In fact, the good news is that, since we filmed them,
0:22:57 > 0:23:01they've managed to rent the flat out for £1,500 per calendar month,
0:23:01 > 0:23:04giving them an annual yield of 10%.
0:23:04 > 0:23:08So will this entrepreneurial couple be dishing up some more properties?
0:23:08 > 0:23:10We know we can do this, and that's...
0:23:10 > 0:23:12These are the things we like to do.
0:23:12 > 0:23:15We've just purchased one, just two or three days ago,
0:23:15 > 0:23:18but, yeah, I think this is what we'll be doing.
0:23:18 > 0:23:19Yeah.
0:23:23 > 0:23:25We now head back to the northeast of England,
0:23:25 > 0:23:29and to Whickham near Gateshead, where earlier we met Paul,
0:23:29 > 0:23:34who bought this semidetached house for £135,000.
0:23:34 > 0:23:37He has already bought, sold and refurbished several properties,
0:23:37 > 0:23:41and this one was the next in line, except for the selling part,
0:23:41 > 0:23:43because once done up, he aimed to move in
0:23:43 > 0:23:46and live in it with his girlfriend Michelle.
0:23:47 > 0:23:49The couple had a budget of £15,000,
0:23:49 > 0:23:53which hopefully should have been enough, and a six-month schedule.
0:23:53 > 0:23:57It was six-and-a-half months later that we returned to Whickham
0:23:57 > 0:23:59to catch up with Paul to find out
0:23:59 > 0:24:01if they had finally made this their home.
0:24:10 > 0:24:13Well, if home is where the heart is, Paul has certainly
0:24:13 > 0:24:18put his into this wonderful, fresh and spacious new downstairs layout.
0:24:20 > 0:24:23And it's farewell to that tiny kitchen
0:24:23 > 0:24:27and hello to a spacious open-plan kitchen-dining room,
0:24:27 > 0:24:29perfect for modern living.
0:24:31 > 0:24:34And upstairs the bedrooms have been given the same treatment.
0:24:34 > 0:24:38Those sliding wardrobes have slid off into history to be
0:24:38 > 0:24:42replaced by contemporary units much more suited to the 21st century.
0:24:47 > 0:24:49And overall, I think Paul's got
0:24:49 > 0:24:53a lot to be pleased about with this renovation.
0:24:53 > 0:24:54Over the moon.
0:24:54 > 0:24:57Very rarely do you buy a property
0:24:57 > 0:24:59and it works out exactly how you want,
0:24:59 > 0:25:01but for this property, it's just...
0:25:01 > 0:25:03Yeah, I'm absolutely over the moon with it.
0:25:03 > 0:25:05Quite right, too.
0:25:05 > 0:25:07He's certainly added a lot of space down here
0:25:07 > 0:25:10by creating a new downstairs layout.
0:25:11 > 0:25:14For the hallway, we got rid of this entrance
0:25:14 > 0:25:17from the hallway to the kitchen, made that a cupboard.
0:25:17 > 0:25:21As a consequence, you've got to walk through the living room.
0:25:21 > 0:25:23We got rid of the sliding doors,
0:25:23 > 0:25:26opened this area up, which is a nice open space.
0:25:26 > 0:25:30We took the wall between the dining room and the kitchen out
0:25:30 > 0:25:34and now we've a lovely entertaining area,
0:25:34 > 0:25:36which we've already had a couple of parties in
0:25:36 > 0:25:38and it is great for entertainment.
0:25:38 > 0:25:40The workshop was finally taken down.
0:25:40 > 0:25:44But that meant the garage had to have a sloping roof installed
0:25:44 > 0:25:47and the newly exposed wall rendered.
0:25:47 > 0:25:50At the back, the garden has had a decking overhaul,
0:25:50 > 0:25:54but its limited size means that what you see is what you get.
0:25:54 > 0:25:58For the house, Paul got his usual team of certified professionals in
0:25:58 > 0:26:00for the electrics and plumbing
0:26:00 > 0:26:03with the remainder of the work being done by himself.
0:26:03 > 0:26:05And since this was going to be their new home together,
0:26:05 > 0:26:09girlfriend Michelle gave Paul a helping hand.
0:26:09 > 0:26:12Michelle did a lot of the painting and decorating.
0:26:12 > 0:26:15To be fair, her input was a massive help to me
0:26:15 > 0:26:18because any job that I gave her, she was brilliant.
0:26:18 > 0:26:22She's never picked up a paintbrush in her life until this house.
0:26:22 > 0:26:25To be fair, she was absolutely fantastic.
0:26:25 > 0:26:27You'd expect a house that would be their own
0:26:27 > 0:26:32to have a high standard of finish, and this place does not disappoint.
0:26:32 > 0:26:34But would that come at a cost to their budget
0:26:34 > 0:26:36and their six-month timescale?
0:26:36 > 0:26:40We hit the target in moving in. However, for the budget,
0:26:40 > 0:26:43I said originally I thought it was going to be about 15,000.
0:26:43 > 0:26:45It ended up being about 18,000.
0:26:45 > 0:26:50With that renovation cost added to their purchase price of 135,000,
0:26:50 > 0:26:54the total outlay for the house is now £153,000.
0:26:56 > 0:26:58So, time to find out from two local estate agents
0:26:58 > 0:27:00if it's money well spent.
0:27:00 > 0:27:03We start off with the agent who visited the property
0:27:03 > 0:27:05before Paul got his hands on it.
0:27:07 > 0:27:09If I was to put this property onto the market,
0:27:09 > 0:27:12I would recommend an asking price of £185,000.
0:27:12 > 0:27:15I think the property could be worth somewhere in the region
0:27:15 > 0:27:18of £175,000-£185,000.
0:27:18 > 0:27:21Those valuations mean that Paul and Michelle
0:27:21 > 0:27:23could stand to make a pre-tax profit
0:27:23 > 0:27:26of between £22,000-£32,000.
0:27:27 > 0:27:30Over the moon with that. That means that everything is covered anyway.
0:27:30 > 0:27:34So all the hard work was worth it. So, yeah, happy with that.
0:27:34 > 0:27:38Paul has carried out a really fantastic refurbishment
0:27:38 > 0:27:42to this house and created a lovely, cosy family home.
0:27:42 > 0:27:44But with those possible profits,
0:27:44 > 0:27:48is he tempted to treat it like his other projects and sell it on?
0:27:48 > 0:27:50As far as the figures are concerned, fantastic price.
0:27:50 > 0:27:54I mean 185 at the top.
0:27:54 > 0:27:57But it's irrelevant, we're going to stay here,
0:27:57 > 0:28:02hopefully for a long time, and maybe start a family.
0:28:08 > 0:28:12That's it from the plucky buyers on today's programme,
0:28:12 > 0:28:14but there's plenty more where they came from.
0:28:14 > 0:28:17So join us next time for more Homes Under The Hammer.
0:28:17 > 0:28:18- Goodbye.- Bye.