0:00:02 > 0:00:03Martin and I never cease to be amazed.
0:00:03 > 0:00:05Since we started making this programme,
0:00:05 > 0:00:08we have seen hundreds of people take the plunge and buy at auction.
0:00:08 > 0:00:14Yes, and we love bringing you the stories behind them, and there's more today.
0:00:14 > 0:00:19But it can be a bumpy ride, so fasten your seatbelts as we head for the auctions.
0:00:44 > 0:00:49This programme isn't just about bricks and mortar. It's about real people with a tale to tell.
0:00:49 > 0:00:52But we never quite know how their stories will turn out.
0:00:52 > 0:00:57No. So will today's properties be a nightmare or a dream?
0:00:57 > 0:01:00These are the ones we followed to the auction.
0:01:01 > 0:01:04This far from standard Stoke-on-Trent terrace
0:01:04 > 0:01:06makes me think big.
0:01:06 > 0:01:10The moment you walk in, it just has that extra element of grandeur.
0:01:11 > 0:01:17There's a lot of property for your money in Ramsgate, Kent, but don't expect to park nearby.
0:01:17 > 0:01:20Sorry - you'll just have to pay at the meter.
0:01:22 > 0:01:25And in South Wales, when it comes to this mid-terrace,
0:01:25 > 0:01:27it's Tigger time!
0:01:27 > 0:01:31You can kind of bounce off the walls in this house, literally!
0:01:33 > 0:01:35All of these properties went to auction.
0:01:35 > 0:01:39We'll find out who bought them and what they paid for them when they went under the hammer.
0:01:40 > 0:01:41Yours, sir.
0:01:44 > 0:01:48I'm visiting Stoke-on-Trent, also known as the Potteries, because of
0:01:48 > 0:01:51its connection with the ceramics industry.
0:01:51 > 0:01:53# Take a little clay Put it on the wheel
0:01:53 > 0:01:56# Make it in the shape you want it in... #
0:01:58 > 0:02:01This area of Stoke is called Smallthorne,
0:02:01 > 0:02:06a former mining community, although there are few signs of the industry left.
0:02:06 > 0:02:09It's about three miles from Stoke city centre,
0:02:09 > 0:02:12and the property I'm here to see is just round the corner.
0:02:12 > 0:02:14It's on a street of terraces,
0:02:14 > 0:02:16all built at the beginning of the 1900s.
0:02:18 > 0:02:21And here it is - three-bedroom end-of-terrace.
0:02:21 > 0:02:27Had a guide price of £35,000, and it looks like a pretty substantial property for that.
0:02:30 > 0:02:34That's interesting. This house seems to be much bigger
0:02:34 > 0:02:39than the other ones on the street, and my guess is that maybe this was the foreman's house
0:02:39 > 0:02:43for the local colliery, because the moment you walk in,
0:02:43 > 0:02:45it just has that extra element of grandeur,
0:02:45 > 0:02:49which maybe some of the other terraces on this street haven't got.
0:02:49 > 0:02:51This big archway, stuff like that.
0:02:51 > 0:02:54A front reception room. An interesting-looking fireplace there.
0:02:54 > 0:02:59Lots of light coming in, because you are this end-of-terrace, which is really nice.
0:02:59 > 0:03:02And then through into a central living room - again,
0:03:02 > 0:03:06with a fireplace, which is good, and an odd place for the stairs. It actually
0:03:06 > 0:03:09works OK, but it's not something I've seen that often.
0:03:09 > 0:03:12Staircase here leading to the bedrooms.
0:03:12 > 0:03:14Let's see if it continues in this light.
0:03:14 > 0:03:19A bit of cosmetic work and redecoration is needed
0:03:19 > 0:03:23to bring this place up to date. But it seems to be in reasonable condition
0:03:23 > 0:03:25so far, and it's certainly spacious.
0:03:26 > 0:03:28Well, the kitchen is a good size,
0:03:28 > 0:03:31but it obviously needs a bit of tender loving care.
0:03:31 > 0:03:34Well, actually ripping out and starting again. But at least
0:03:34 > 0:03:37you've got the space to play with. But then a very traditional design here -
0:03:37 > 0:03:41through the kitchen, a little bit of a utility area, which has got
0:03:41 > 0:03:45the hot water cylinder, and you come to the only bathroom. It's the loo,
0:03:45 > 0:03:47it's the bathroom - it's not ideal.
0:03:47 > 0:03:49A lot of the terraces round here will probably have this,
0:03:49 > 0:03:52but I wonder if there's a better place for it to be.
0:03:52 > 0:03:54Let's check upstairs.
0:03:54 > 0:03:59Downstairs bathrooms may be quite common in older terraces, but they
0:03:59 > 0:04:03can definitely put off some buyers. After all, who wants to go trudging
0:04:03 > 0:04:04downstairs in the middle of the night?
0:04:04 > 0:04:06# Move it up Move it
0:04:06 > 0:04:08# Move it up Move it up... #
0:04:08 > 0:04:11So let's hope there's a place of more convenience....
0:04:13 > 0:04:17So up here - front bedroom there. That might be one option.
0:04:17 > 0:04:19But I think a much more viable place for the bathroom is here,
0:04:19 > 0:04:25in this middle bedroom. It's big enough, I think, to divide, literally, in two.
0:04:25 > 0:04:28You've got two windows, so each room would have its own,
0:04:28 > 0:04:30and then make this area here
0:04:30 > 0:04:34the bathroom. The reason why I think that's even more
0:04:34 > 0:04:39of a positive thing to do is the fact that this is an exterior wall.
0:04:39 > 0:04:42It comes to about here. The rest of this is the rest of the house, but
0:04:42 > 0:04:46down there is the courtyard. So that's the exterior wall, so you've
0:04:46 > 0:04:49got somewhere where you can very easily get out your soil pipes,
0:04:49 > 0:04:51your drainage, etc. So that's something you need to consider.
0:04:51 > 0:04:55It would get the bathroom upstairs, you'd have more space in the kitchen,
0:04:55 > 0:04:57and I think it would be a very good thing to do.
0:04:59 > 0:05:02If you did divide the middle bedroom, you'd still be left with
0:05:02 > 0:05:04two good-sized doubles.
0:05:05 > 0:05:08Plus, there's the third single bedroom at the back.
0:05:09 > 0:05:12So, what does a local estate agent think of this house that went
0:05:12 > 0:05:16to auction guided at £35,000-plus?
0:05:16 > 0:05:19Is moving the bathroom a good idea?
0:05:20 > 0:05:22I would say putting the bathroom upstairs
0:05:22 > 0:05:25for this size of house would add value.
0:05:25 > 0:05:28Particularly due to the fact you can retain
0:05:28 > 0:05:33the three bedrooms, as opposed to losing a bedroom. It also gives the opportunity
0:05:33 > 0:05:36for a utility downstairs, so that would be the way to go.
0:05:38 > 0:05:41How much value would an upstairs bathroom add?
0:05:41 > 0:05:46Moving the bathroom upstairs alone, without the refurbishments, would add at least
0:05:46 > 0:05:49£5,000, in my opinion.
0:05:49 > 0:05:52Is there anything else that needs doing?
0:05:52 > 0:05:56The main thing is obviously decor, improvements to the kitchen.
0:05:56 > 0:05:59The central heating system looks dated, so possibly that needs
0:05:59 > 0:06:03to be replaced, and maybe a full rewire would also be needed.
0:06:04 > 0:06:07Once renovated, would this let easily?
0:06:07 > 0:06:13The rental market in this area is very strong. I would imagine rental income in he region of
0:06:13 > 0:06:15£450 per calendar month.
0:06:15 > 0:06:19So rental's a possibility. But how much could this house,
0:06:19 > 0:06:24that was guided at £35,000, sell for after a full refurbishment?
0:06:25 > 0:06:29With the bathroom upstairs, fully modernised, I would recommend
0:06:29 > 0:06:32an asking price in the region of £80-£85,000.
0:06:35 > 0:06:38Well, I think this is a great property, especially at that guide price.
0:06:38 > 0:06:40In fact, it's a bit of a gem.
0:06:40 > 0:06:45Let's see who spotted this particular treasure when it went under the hammer.
0:06:45 > 0:06:49Lot number 10. This is a traditional end-terrace house.
0:06:49 > 0:06:53What shall we say for lot number 10? So it's £25,000 to start me.
0:06:53 > 0:06:5420. Start me at 20, then.
0:06:54 > 0:06:5720 bid, standing left. £20,000.
0:06:57 > 0:07:0025, can I say now? £25,000.
0:07:00 > 0:07:04£30,000, standing. £30,000 standing at the front. 35?
0:07:04 > 0:07:05£35,000.
0:07:05 > 0:07:09There was a lot of interest on auction day.
0:07:09 > 0:07:11We rejoin the bidding at £49,000.
0:07:11 > 0:07:15£49,000. The bid's in the aisle at £49,000. Are we all done?
0:07:15 > 0:07:18£49,000.
0:07:18 > 0:07:21£50,000, seated. At £50,000. 51?
0:07:21 > 0:07:23Half, he's saying. £50,500.
0:07:23 > 0:07:2551.
0:07:25 > 0:07:26Half.
0:07:26 > 0:07:29Shaking his head. £51,500. Still with you in the aisle, sir.
0:07:29 > 0:07:33£51,500. Are we all done now?
0:07:33 > 0:07:35£51,500, then, first time.
0:07:35 > 0:07:38£51,500 second time.
0:07:38 > 0:07:41Third and final time at £51,500...
0:07:41 > 0:07:42It's your lot, sir. Well done.
0:07:43 > 0:07:47That final bid of £51,500 was made by local man Ian.
0:07:47 > 0:07:54He's roped in his son Neil to help him with the refurbishment. I met them both back
0:07:54 > 0:07:57in Smallthorne to find out their plans.
0:07:58 > 0:08:03- Ian, Neil, good to meet you both. - Hi.- Hi.- Congratulations.- Thank you very much.
0:08:03 > 0:08:06- I don't know whether it is.- Why? What are you concerned about?
0:08:06 > 0:08:10Well, we didn't actually look at it, so...
0:08:10 > 0:08:13Why? Why, why, why, why?!
0:08:13 > 0:08:15Well, I was looking at a house in Belper,
0:08:15 > 0:08:19where Neil lives, and that fell through. And we'd only got
0:08:19 > 0:08:24a couple of days before the auction, so we came round on the Sunday
0:08:24 > 0:08:27and had a look through the windows, and then bought it on the Monday.
0:08:27 > 0:08:31- So, what do you think now you've had a look?- It's not as bad... I was hoping
0:08:31 > 0:08:34I wasn't going to have to do anything, but you don't get that sort of luck, so...
0:08:34 > 0:08:38It's not as bad as I was expecting.
0:08:38 > 0:08:42- So, do you work together a lot?- No, first one.- Yeah.- And is this a joint venture?
0:08:42 > 0:08:46- No.- Not yet.- What?- What he needs to look at is...
0:08:46 > 0:08:50I love the way he's talking to you as if you're not here!
0:08:50 > 0:08:56- He still thinks you're four years old! Yes!- I sometimes feel like I'm four years old.
0:08:56 > 0:08:59What he needs to think about is that he's more than likely going to be
0:08:59 > 0:09:04- part of his inheritance, so you know...- Ah!- It's a bit of an incentive.
0:09:04 > 0:09:09- Right. But what will your involvement be, Neil?- Basically,
0:09:09 > 0:09:12I'm going to do most of the labour, put the central heating in,
0:09:12 > 0:09:16look at the electrics, get the plasterers in, bathrooms in, kitchens.
0:09:16 > 0:09:18- And what about you, Ian?- Me?
0:09:18 > 0:09:22- I shall be carrying on with my day job.- Which is what?
0:09:22 > 0:09:27I do the road traffic collision investigations for insurance companies.
0:09:27 > 0:09:31- So if somebody has an accident, you go along and...- Yeah. The majority of the stuff we do
0:09:31 > 0:09:34now is fraudulent claims. Keeps you busy.
0:09:34 > 0:09:37# Well, get busy, busy, busy, busy, baby
0:09:37 > 0:09:40# Busy, busy, busy as a bee... #
0:09:40 > 0:09:44It seems as though if his father has anything to do with it,
0:09:44 > 0:09:47Neil's the one who's going to be busy, combining work on the place
0:09:47 > 0:09:51along with his day job. He'll have his dad's experience to call on, though,
0:09:51 > 0:09:56as Ian dabbled in property some years ago, but sold up.
0:09:56 > 0:10:00Now, with his eye on retirement and beyond, he's ready, with his son's help,
0:10:00 > 0:10:01to get back to development.
0:10:01 > 0:10:04# Well, get busy, busy, busy, busy, baby... #
0:10:04 > 0:10:07So, Neil, you'll be picking up the pieces of this. What kind of
0:10:07 > 0:10:11- experience have you got?- I run my own business. I'm a heating engineer,
0:10:11 > 0:10:14- do air conditioning, oil-fired heating.- Air conditioning?
0:10:14 > 0:10:16- Do we need that a lot up in Stoke? - You'd be surprised!
0:10:16 > 0:10:21- It's got a fan.- It's got a fan - exactly!- Don't need air conditioning -
0:10:21 > 0:10:24- open the windows!- Open the windows. - It's mainly commercial properties
0:10:24 > 0:10:27- I put the air conditioning in.- Fantastic.
0:10:27 > 0:10:30So you're going to be doing the majority of the work. Will you get
0:10:30 > 0:10:32- people in to do it?- Yeah.
0:10:32 > 0:10:36I'll be physically hands-on, but we'll get plasterers in, and,
0:10:36 > 0:10:40as far as the plumbing goes, and decorating and doing the building work,
0:10:40 > 0:10:42there's not really much I've not done myself.
0:10:42 > 0:10:48But Ian and Neil aren't planning just to do a simple cosmetic refurb.
0:10:48 > 0:10:51They're also planning to rejig the layout.
0:10:51 > 0:10:54Moving the bathroom upstairs,
0:10:54 > 0:11:00new kitchen, damp-proof, obviously, cos it's a little bit iffy in places,
0:11:00 > 0:11:05- Erm...I'm going to split the middle bedroom.- Right.
0:11:05 > 0:11:10Put a bathroom in one side. Single bedroom on the other side.
0:11:10 > 0:11:12By the way, this is his idea.
0:11:12 > 0:11:15- It's not mine.- Right. And it's a good idea, so well done!
0:11:15 > 0:11:19I think the bathroom at the back, there's not many people, particularly families,
0:11:19 > 0:11:23that want a bathroom downstairs, so putting the bathroom upstairs will sort that problem.
0:11:23 > 0:11:26And it'll give us a bit of free space at the back of the property,
0:11:26 > 0:11:29- so we can make the kitchen into a kitchen-diner.- Nice idea.
0:11:29 > 0:11:33A utility room at the back, so all the white goods can go into the utility room.
0:11:33 > 0:11:36So talk me through the numbers. What kind of amount of money are you
0:11:36 > 0:11:40- going to have to plough into it? - £10-15,000, I would think.
0:11:40 > 0:11:43- What do you think?- I think he'd like it to be £10-15,000, but I think
0:11:43 > 0:11:48- realistically, it'll be around £20,000.- You're going to have to sharpen your pencil!
0:11:48 > 0:11:53- This is where the free labour comes in.- And timescale -
0:11:53 > 0:12:00- is that a contentious issue or not? - Not really. Erm...two, three months.
0:12:00 > 0:12:03- Something like that, realistically. - Well, congratulations and good luck
0:12:03 > 0:12:06- with it. Really nice to meet you both.- Thanks very much.
0:12:06 > 0:12:09I look forward to seeing how you get on.
0:12:09 > 0:12:13Well, being an accident investigator, Ian is pretty used to
0:12:13 > 0:12:16looking at disasters. Still, I am quite surprised that he bought
0:12:16 > 0:12:19this place without viewing it first. On this occasion, though, I think
0:12:19 > 0:12:23he might have got away with it. It's a good house, and with Neil's help,
0:12:23 > 0:12:25he should be able to put it back into some good condition.
0:12:25 > 0:12:29You can find out how he gets on - or THEY get on - later in the show.
0:12:34 > 0:12:38Today I'm on the south coast, in a seaside port with Royal credentials.
0:12:38 > 0:12:40# Somewhere
0:12:42 > 0:12:44# Beyond the sea... #
0:12:44 > 0:12:48Ramsgate became Royal Ramsgate when King George IV was impressed
0:12:48 > 0:12:53by the welcome he received there in 1820. Nowadays, the harbour area has been spruced up
0:12:53 > 0:12:58and the town's links to London - only an hour and a half by train -
0:12:58 > 0:13:00make it increasingly popular.
0:13:04 > 0:13:07Well, just a short walk from the Royal Harbour and I'm here today
0:13:07 > 0:13:11on Harbour Street to see the auction lot. Now, the question is,
0:13:11 > 0:13:17will the property be a port in a stormy economic climate, or will it be harbouring a secret?
0:13:17 > 0:13:21Well, this is it - 12 commercial units and eight flats on top.
0:13:21 > 0:13:26It's all in here, and the guide, £180-£200,000.
0:13:28 > 0:13:31Yes, it's a lot of property for the money, but the layout won't float
0:13:31 > 0:13:35everyone's boat. Not only is it all above a pub, the retail spaces
0:13:35 > 0:13:40are in the first floor - hardly ideal. However, they look in pretty good condition,
0:13:40 > 0:13:44and noise from the pub isn't going to be an issue for these businesses.
0:13:44 > 0:13:46So far, so good.
0:13:52 > 0:13:56Unfortunately, this is where things take a decidedly dark turn.
0:13:56 > 0:14:00Not one but two fires have ripped through the flats,
0:14:00 > 0:14:02and there's extensive damage.
0:14:04 > 0:14:07Fortunately, no-one was seriously injured, but they have been left
0:14:07 > 0:14:09in a sorry state.
0:14:11 > 0:14:14You can see it is completely fire-damaged.
0:14:14 > 0:14:17Now, it hasn't affected the structure, apparently,
0:14:17 > 0:14:21but to be safe, I would have a structural engineer in here to assess this damage.
0:14:21 > 0:14:25It'll also give you an idea of how much you need to spend renovating this place.
0:14:25 > 0:14:30If the building is structurally unsound, your budget could spiral out of control.
0:14:32 > 0:14:35It's not just the structure that needs checking by professionals.
0:14:35 > 0:14:39Fire and the accompanying water damage can mean compromised
0:14:39 > 0:14:43electrics and plumbing. It's easy to see how this fire spread.
0:14:43 > 0:14:48There are eight flats spread over three floors - four flats on the first floor,
0:14:48 > 0:14:52three flats on the second floor and a third-floor flat with a balcony.
0:14:52 > 0:14:57It's like a rabbit warren, with lots of little corridors. The layout is
0:14:57 > 0:15:01really confusing. This isn't just a renovation job,
0:15:01 > 0:15:04it's a reconfiguration one too. On the plus side,
0:15:04 > 0:15:07there are some very spacious rooms up here,
0:15:07 > 0:15:10and the flat on the very top floor has plenty of light
0:15:10 > 0:15:12and terrific views.
0:15:12 > 0:15:17Before I get too excited, though, there's one important consideration.
0:15:17 > 0:15:20This property is in a conservation area. That means you have to obtain
0:15:20 > 0:15:24permission before making any changes which would normally be permitted
0:15:24 > 0:15:29elsewhere to ensure alterations do not detract from the area's appearance.
0:15:29 > 0:15:33Now, these changes include certain types of cladding,
0:15:33 > 0:15:36inserting dormer windows, and putting up satellite dishes
0:15:36 > 0:15:40which are visible from the street. The local authorities can also make
0:15:40 > 0:15:43further restrictions, including painting the house a different colour,
0:15:43 > 0:15:46changing distinctive doors or windows.
0:15:46 > 0:15:51Conservation area designation is a means of recognising the importance
0:15:51 > 0:15:53of the quality of the area as whole,
0:15:53 > 0:15:57as well as protecting the individual buildings.
0:15:57 > 0:16:00Restoration rather than straightforward replacement
0:16:00 > 0:16:04can add a lot to your costs, so you really do need to do your homework
0:16:04 > 0:16:06when it comes to a conservation area.
0:16:06 > 0:16:09Much as this central location seems handy,
0:16:09 > 0:16:11I've spotted another drawback.
0:16:11 > 0:16:15So there'll be plenty of parking with this huge property, right?
0:16:15 > 0:16:19Parking for the residents, parking for the small businesses?
0:16:19 > 0:16:22Well, no, I'm afraid not. No parking spaces at all.
0:16:22 > 0:16:25Sorry - you'll just have to pay at the meter.
0:16:29 > 0:16:32To make something of this property is going to take a healthy dose
0:16:32 > 0:16:35of imagination, but I do think there's potential here.
0:16:37 > 0:16:40We asked a local estate agent to take a look around
0:16:40 > 0:16:42and see if he agreed.
0:16:42 > 0:16:46This property is in an absolutely excellent location,
0:16:46 > 0:16:47in a pedestrianised street.
0:16:47 > 0:16:51It's very close to the harbour, which is absolutely wonderful.
0:16:51 > 0:16:55Lots of bars and restaurants around, so it's really situated in a super location.
0:16:56 > 0:17:01I really do agree. The setting is fantastic. But beyond dealing
0:17:01 > 0:17:04with the fire damage, what does this property need?
0:17:04 > 0:17:06This property's quite unusual,
0:17:06 > 0:17:11in that it's got eight flats laid out in a higgledy-piggledy manner at the moment.
0:17:11 > 0:17:15And I think, realistically, you should be reducing that number down
0:17:15 > 0:17:19to maybe five, possibly six, and that would really improve the layout.
0:17:20 > 0:17:23Sounds like a good plan. And what might those flats fetch
0:17:23 > 0:17:25on the open market?
0:17:25 > 0:17:28It would be nice to get two-bedroom flats in here,
0:17:28 > 0:17:32and for that sort of property, you're going to be looking at around about
0:17:32 > 0:17:37£125,000. If the property was in slightly better condition,
0:17:37 > 0:17:41maybe more luxurious, you could push that up to maybe £135,000.
0:17:42 > 0:17:46- And if you rented those flats out? - You're going to be looking at
0:17:46 > 0:17:51a rental in the region of £550-£600 per calendar month.
0:17:51 > 0:17:55What about letting the commercial units on the first floor?
0:17:55 > 0:17:58The commercial units are quite unusual.
0:17:58 > 0:18:01They look to be arranged at the moment as small units,
0:18:01 > 0:18:04and ideally, you're probably going to be looking at about £100 per week
0:18:04 > 0:18:09for these properties. Maybe a little bit less, depending on the market conditions.
0:18:11 > 0:18:15This is a fantastic property, but its development potential could be
0:18:15 > 0:18:19slightly limited. There's not much parking around here -
0:18:19 > 0:18:23that's not good for commercial or residential premises.
0:18:23 > 0:18:28The fact that it's in a conservation area will also have implications for the new owner.
0:18:28 > 0:18:31It is a tough one to take on, in my opinion, but somebody wanted it.
0:18:31 > 0:18:33Let's see who that was as we head to auction.
0:18:36 > 0:18:41Lot 104. 12 commercial units and the eight fire-damaged flats.
0:18:41 > 0:18:45Lots of potential here. It's guided at 180-200.
0:18:45 > 0:18:48What may I say? £180,000 to start me?
0:18:48 > 0:18:50£180,000 I'm bid.
0:18:50 > 0:18:52185. And 190.
0:18:54 > 0:18:57£185,000 I'm bid. Gentleman in the white shirt.
0:18:57 > 0:19:01190. 195 is bid.
0:19:01 > 0:19:02And 200.
0:19:02 > 0:19:05205 is bid. And 210, sir.
0:19:05 > 0:19:07210 is bid. And 215.
0:19:07 > 0:19:09215. And 220.
0:19:10 > 0:19:13220 is bid. 225? No.
0:19:13 > 0:19:15Take £2,000 if you're quick.
0:19:15 > 0:19:18222. And 225.
0:19:18 > 0:19:21225. And 227? No.
0:19:21 > 0:19:26At £225,000 I have. 227 for anyone else?
0:19:27 > 0:19:33£225,000 for the first time, then. At £225,000, out in the white shirt.
0:19:33 > 0:19:36At £225,000 for the second time...
0:19:36 > 0:19:40£225,000 for the third and final time.
0:19:40 > 0:19:43£225,000, are you all done?
0:19:43 > 0:19:469957, thank you very much indeed.
0:19:50 > 0:19:55The successful bid of £225,000 was made by Chris and his Ukrainian wife Victoria.
0:19:55 > 0:19:59They're in partnership with Anna, who is Russian.
0:19:59 > 0:20:04Chris and Victoria currently run three pubs, but have lots of hands-on renovation experience.
0:20:04 > 0:20:07I met up with them to find out more.
0:20:10 > 0:20:15Chris and Victoria, congratulations. What was the inspiration
0:20:15 > 0:20:18- behind you wanting to have this? - Well, it's quite a project,
0:20:18 > 0:20:23and the uplift there's been in Ramsgate, that's one of the major reasons we liked the idea.
0:20:23 > 0:20:29We just came and we fell in love with the harbour, which is excellent.
0:20:29 > 0:20:33It is an amazing harbour. I've visited quite frequently,
0:20:33 > 0:20:37and I can't believe the changes. It's fantastic around here.
0:20:37 > 0:20:42The project will be financed by Anna and her husband Alexander, while Victoria and Chris project-manage.
0:20:42 > 0:20:45So, what is your background?
0:20:45 > 0:20:51Well, at the moment, we're running pubs. But I've had a building company before.
0:20:51 > 0:20:57Victoria was doing cakes. And we got together with some business colleagues of ours and took this.
0:20:57 > 0:21:00He actually was doing my shop.
0:21:00 > 0:21:04- Oh, really? Is that how you guys met?- Yeah.- Fantastic.
0:21:04 > 0:21:08- Yeah.- Yes, she bought a shop, and that needed refurbishing, and I got
0:21:08 > 0:21:13the quote and the price right, so... And from that day on, we've been together, really.
0:21:15 > 0:21:18So will this development be the icing on their cake?
0:21:18 > 0:21:23Chris and Victoria would like to turn the shops into office units,
0:21:23 > 0:21:26but they've got bigger plans for the fire-damaged flats.
0:21:28 > 0:21:33- What are you going to do?- The first project, we've got people coming in
0:21:33 > 0:21:36to just clear it out, and get rid of all of the rubbish and the burnt stains
0:21:36 > 0:21:40and all the problems. Then get the scaffolding up, start working on the front,
0:21:40 > 0:21:44cos we can't change the front, but that can be continuing while
0:21:44 > 0:21:47we're going for planning and all the rest of it. And get the architect involved.
0:21:47 > 0:21:49How many flats are you going to convert it into?
0:21:49 > 0:21:53Well, there's eight at the moment, and we want to keep it to about that number.
0:21:53 > 0:21:58But they just need chopping about slightly. But I think even if the fires hadn't happened,
0:21:58 > 0:22:01we'd have had to have done some alterations and refurb here anyway.
0:22:01 > 0:22:05So the fire has just caused us a few more problems, but it's made
0:22:05 > 0:22:08the price a lot better than it would be if this was an easy refurb.
0:22:08 > 0:22:11So what sort of budget are you looking at to change it and do the work?
0:22:11 > 0:22:18- We're hoping to, with the purchase price and all the fees and everything else, not to spend over £500,000.- OK.
0:22:18 > 0:22:21- How long is this project going to take you to complete?- I think
0:22:21 > 0:22:25from the time we start the works, it's going to be about eight months,
0:22:25 > 0:22:29but that's going to be relative to what the authorities come back with.
0:22:29 > 0:22:33- Planners and suchlike can take their own times.- And how are you going
0:22:33 > 0:22:36to fit all of this in with your other jobs?
0:22:37 > 0:22:42- Lot of support from my other half. - Victoria, you're going to have a lot going on!
0:22:42 > 0:22:45- I know! But I love it. - Most of this is going to be
0:22:45 > 0:22:50the project-manage side. I'm not going to get my tools out and start cutting bits of wood about.
0:22:50 > 0:22:53You're going to keep looking smart and turn up on the job.
0:22:53 > 0:22:55- And tell them what to do.- I like it!
0:22:57 > 0:23:01Guys, I can't wait to see what you do here, and good luck with the planners.
0:23:01 > 0:23:03- Thank you.- Thank you.- Thank you.
0:23:05 > 0:23:08They may be used to running three pubs, but how will they get on with
0:23:08 > 0:23:1312 commercial units and eight fire-damaged flats? You know,
0:23:13 > 0:23:17they really have got big plans for this place, but I worry that the lack of parking
0:23:17 > 0:23:19will not impress those planners.
0:23:19 > 0:23:23You can find out if they obtained that all-important planning permission
0:23:23 > 0:23:24later on in the programme.
0:23:27 > 0:23:31Coming up... This mid-terrace in South Wales has three levels,
0:23:31 > 0:23:33but it's all a bit...battered!
0:23:34 > 0:23:36Two cod and chips, please!
0:23:38 > 0:23:43It's back to Ramsgate, to see how the Russian and UK development team
0:23:43 > 0:23:46have been getting on with this vast property.
0:23:49 > 0:23:52But first, we return to Stoke-on-Trent, where some surprises
0:23:52 > 0:23:53have sprung up.
0:23:53 > 0:23:56The main problem was the damp, getting rid of the damp.
0:24:00 > 0:24:02The city of Stoke-on-Trent
0:24:02 > 0:24:06is made up of six different Staffordshire towns and several villages.
0:24:06 > 0:24:10Smallthorne, a former mining community about three miles from Stoke,
0:24:10 > 0:24:16is where we saw this three-bed end-of-terrace. It was bought for £51,500 by Ian,
0:24:16 > 0:24:19who roped in his son Neil to help with the renovations.
0:24:19 > 0:24:26Neil works in air conditioning installation and plumbing, so his skills were going to be handy.
0:24:26 > 0:24:30Dad Ian, an accident investigation officer for an insurance company,
0:24:30 > 0:24:35already had two buy-to-let properties, but Neil was a newbie.
0:24:35 > 0:24:39- Do you work together a lot?- No, first one.- And is this a joint venture?
0:24:39 > 0:24:46- No.- Not yet.- What?- What he needs to look at is...- I love the way
0:24:46 > 0:24:50he's talking to you as if you're not here! He still thinks you're four years old.
0:24:50 > 0:24:52Sometimes I feel like I'm four years old!
0:24:54 > 0:24:57Well, the refurbishment certainly wasn't going to be child's play.
0:24:57 > 0:25:00# So please don't treat me
0:25:01 > 0:25:04# Like a child... #
0:25:06 > 0:25:10They planned to move the bathroom upstairs into part of the middle bedroom,
0:25:10 > 0:25:15and had a budget of £10-20,000 and a two- to three-month timescale.
0:25:15 > 0:25:19Well, seven months have now passed, and back in Smallthorne,
0:25:19 > 0:25:21it's Ian we met at the property.
0:25:24 > 0:25:26There have been some impressive changes.
0:25:27 > 0:25:29But the kitchen is not quite complete.
0:25:30 > 0:25:33Let's head upstairs and see if son Neil
0:25:33 > 0:25:36won the day about moving the bathroom.
0:25:37 > 0:25:38The answer?
0:25:40 > 0:25:41Just look at the result.
0:25:45 > 0:25:48Splitting the former middle bedroom has worked a treat.
0:25:51 > 0:25:55There are still three bedrooms.
0:25:55 > 0:25:56This one's at the rear.
0:25:59 > 0:26:02And the double-aspect master at the front.
0:26:02 > 0:26:07This is a vast improvement, and so is the downstairs layout change,
0:26:07 > 0:26:09which is still in progress.
0:26:10 > 0:26:15This was the old kitchen, as it was - sink there.
0:26:15 > 0:26:18Absolute dreadful mess.
0:26:18 > 0:26:20The bathroom was up that end.
0:26:20 > 0:26:23So we thought we'd start with the bathroom first,
0:26:23 > 0:26:27but when we started doing that, the whole place was running with water.
0:26:27 > 0:26:31We decided we'd make that into a dining kitchen,
0:26:31 > 0:26:35so this wall here that was in before,
0:26:35 > 0:26:37we knocked it out -
0:26:37 > 0:26:39well, we had a builder in to do it -
0:26:39 > 0:26:43and made it into what it is now, the kitchen-dining room.
0:26:44 > 0:26:48The corridor linking the kitchen to the living room now has
0:26:48 > 0:26:52laminate flooring and a subtle colour scheme.
0:26:52 > 0:26:56Losing the fireplace in the dual-aspect reception was wise.
0:27:00 > 0:27:03It's been the same treatment for the middle reception room,
0:27:03 > 0:27:04where the staircase is.
0:27:04 > 0:27:07The property's looking good, but what issues did it present?
0:27:09 > 0:27:12Well, the main problem was the damp. Getting rid of the damp,
0:27:12 > 0:27:16because it was running, literally running, through the walls in places,
0:27:16 > 0:27:19and we didn't realise quite how bad it was.
0:27:19 > 0:27:22And then once we started getting through all the rubbish,
0:27:22 > 0:27:25we found it was a lot worse than we thought,
0:27:25 > 0:27:27especially what was the bathroom at the back.
0:27:29 > 0:27:32# Baby, what's so bad about it?
0:27:34 > 0:27:38# Baby, what's so bad about it? #
0:27:38 > 0:27:40The house was in a sorry state,
0:27:40 > 0:27:44and fixing the damp was a major unexpected job.
0:27:44 > 0:27:47The whole house has been plastered, everything.
0:27:47 > 0:27:49We had to chop off to a metre.
0:27:49 > 0:27:54Damp-proof course, tanked all the way round.
0:27:54 > 0:27:58And then it all had to be waterproof-rendered,
0:27:58 > 0:28:01and then we skimmed the whole lot.
0:28:01 > 0:28:06It didn't end there. The extension has been re-roofed, the flashing
0:28:06 > 0:28:10round the chimney's been replaced, and the whole house has been rewired
0:28:10 > 0:28:15and replumbed. Ian and Neil both work full-time and have been doing
0:28:15 > 0:28:19the refurbishment in their spare time. How's the work been divided up?
0:28:19 > 0:28:25He's done most of it. I've been helping him. He's done the bathroom.
0:28:25 > 0:28:30He's done all the plumbing. He's fitted the kitchen, done a lot of the labouring work.
0:28:30 > 0:28:33We got a plasterer in, electrician. But apart from that,
0:28:33 > 0:28:35he's done it all.
0:28:35 > 0:28:38Ian's wife has been responsible for the stylish bathroom,
0:28:38 > 0:28:43and the kitchen units - a good choice. With the unexpected damp problems
0:28:43 > 0:28:47to tackle, plus the plasterer and electrician to employ,
0:28:47 > 0:28:51how did the budget stack up? Did Ian keep to his £10-15,000?
0:28:51 > 0:28:54I think I budgeted 15,
0:28:54 > 0:28:58and my lad, who was with me, he said 20.
0:28:58 > 0:29:03It's probably... The whole lot has now cost us about £30,000.
0:29:04 > 0:29:07With the £51,500 Ian spent at auction,
0:29:07 > 0:29:11that takes his total investment here to £81,500.
0:29:11 > 0:29:15I wonder if Ian's decided to sell the house or let it?
0:29:18 > 0:29:23Not sure. See what it's worth. If it's worth enough, we'll sell it,
0:29:23 > 0:29:26or try and sell it. If not, we'll rent it.
0:29:26 > 0:29:28Let's see if two local estate agents
0:29:28 > 0:29:33we invited along can help Ian decide which option is best at the moment.
0:29:33 > 0:29:37There's quite a change since the first time this agent saw it.
0:29:37 > 0:29:42Moving the bathroom upstairs is definitely a good idea for this property.
0:29:42 > 0:29:45With three bedrooms, the size of the property here,
0:29:45 > 0:29:48people would expect a first-floor bathroom.
0:29:48 > 0:29:49The kitchen's lovely.
0:29:49 > 0:29:51They've spent a significant part of the budget there,
0:29:51 > 0:29:53but it's a light, airy and spacious room.
0:29:54 > 0:29:59Ian has £81,500 invested in the house, so how much could the place
0:29:59 > 0:30:03- be worth on the resale market?- If I was to put this property on sale,
0:30:03 > 0:30:06I would expect it to achieve in the region of £75,000 to £80,000.
0:30:06 > 0:30:10I would place this property on the open market
0:30:10 > 0:30:12in the region of £80-85,000.
0:30:12 > 0:30:16With that valuation range, Ian's facing a loss of £6,500
0:30:16 > 0:30:21or a profit of £3,500 before tax and expenses.
0:30:22 > 0:30:24It's about what I thought.
0:30:24 > 0:30:29We're within the parameters, so not a problem. I'm happy with that.
0:30:30 > 0:30:35If Ian decides to let it, what income could the house achieve?
0:30:35 > 0:30:40I would anticipate the rental income in the region of £450 to £500 per calendar month.
0:30:40 > 0:30:44Rental figure per calendar month, you'd be looking at £450.
0:30:44 > 0:30:49That potential rental spectrum from £450 to £500 per calendar month
0:30:49 > 0:30:54would produce a yield of 6.5 to over 7%. What does Ian think of that?
0:30:55 > 0:31:00We've already got somebody who wants it for £500, so we'll probably end up renting it.
0:31:02 > 0:31:06Ian's intention is to grow his buy-to-let portfolio, and this house
0:31:06 > 0:31:11takes his total to three. This one had some nasty surprises in store,
0:31:11 > 0:31:16so I hope he'll view the next property before he buys it.
0:31:16 > 0:31:19The question is, has this been a worthwhile project?
0:31:19 > 0:31:20Yeah. I thought...
0:31:20 > 0:31:24Well, I didn't expect to spend as much on it as we had.
0:31:24 > 0:31:28Um...so it's just taken us a little bit by surprise, but, yeah,
0:31:28 > 0:31:30it's been all right. Hard work, but OK.
0:31:35 > 0:31:39This is Mountain Ash, deep in the Welsh valleys, and a place
0:31:39 > 0:31:43with an interesting New Year's Eve tradition. Each December 31st,
0:31:43 > 0:31:47thousands of locals line the streets to watch a running race
0:31:47 > 0:31:50that goes twice round the town.
0:31:50 > 0:31:52# Now the race is on... #
0:31:54 > 0:31:57The race commemorates athlete Griffith Morgan, whose statue stands
0:31:57 > 0:32:02on the High Street. I'm not sure I'd fancy a cold winter's jog
0:32:02 > 0:32:06on New Year's Eve, but I am hot-footing it over to our property
0:32:06 > 0:32:08to see what the auction had to offer.
0:32:08 > 0:32:12So a mile from Mountain Ash is the village of Penrhiwceiber,
0:32:12 > 0:32:17with stunning views over the valleys. They never fail to take my breath away.
0:32:17 > 0:32:21And the property? Well, the guide price might make you gasp as well -
0:32:21 > 0:32:27£30,000 for a three-bedroom terrace. Sounds good.
0:32:27 > 0:32:32Hello, hello, what have we got here, then? Two cod and chips, please!
0:32:32 > 0:32:36I don't really think this works. It does allow a lot of light into the hallway.
0:32:36 > 0:32:38Just feels like a taxi cab waiting room.
0:32:38 > 0:32:44I think this has got to be boarded up, because you've got such a lovely big space here.
0:32:44 > 0:32:48Double-aspect windows. This has already been knocked through into one room,
0:32:48 > 0:32:49and it works.
0:32:49 > 0:32:53You've got this big old view to look at. I mean, how stunning,
0:32:53 > 0:32:57even on a misty day like today? Looks fabulous out there.
0:32:57 > 0:33:00One thing I would have to investigate further is this...
0:33:00 > 0:33:04Now, what is this about? Can you see? You can kind of, like,
0:33:04 > 0:33:08bounce off the walls in this house, literally!
0:33:08 > 0:33:12It's all been plasterboarded, so I think I'd investigate further,
0:33:12 > 0:33:15because they might be hiding a deep, murky secret.
0:33:15 > 0:33:20But as this space goes, it's wonderfully large, it's light and bright. It works.
0:33:23 > 0:33:28For starters, though, that hall hatch has got to go. And there's
0:33:28 > 0:33:31some dodgy do-it-yourself that you'll have to redo yourself.
0:33:31 > 0:33:35And I'd investigate those wobbly walls before I'd try to hang anything on them.
0:33:38 > 0:33:40# ..tumble and fall... #
0:33:40 > 0:33:44This house is on three floors. I'm going up first. There are three bedrooms,
0:33:44 > 0:33:48but note - no bathroom. Two of the bedrooms have been
0:33:48 > 0:33:52created from what would have been a large front room. The third room
0:33:52 > 0:33:55is small, so there's not much room to manoeuvre,
0:33:55 > 0:33:57or bathroom, for that matter.
0:34:00 > 0:34:04There's some work needed here, but nothing structural,
0:34:04 > 0:34:07by the looks of things. Let's see if the lower ground is the same.
0:34:09 > 0:34:12Well, it's a different story altogether downstairs.
0:34:12 > 0:34:15The first thing that hits you is the big smell of damp.
0:34:15 > 0:34:17Now, reception room through here.
0:34:17 > 0:34:21They've gone Artex-crazy - it looks like there's some Easter eggs
0:34:21 > 0:34:26on the ceiling. And through here is the kitchen - really disappointing.
0:34:26 > 0:34:30It's a bit small, it's dark, there's not much light coming through
0:34:30 > 0:34:34that window. The only bathroom is through there, with no loo.
0:34:34 > 0:34:39It just feels wrong. Now, where is the toilet, if it's not in there?
0:34:39 > 0:34:44Let's have a look through here... Of course! Here it is. Outside loo.
0:34:44 > 0:34:47It's really chilly out here. This is like a cobbled-together lean-to.
0:34:47 > 0:34:49Can you imagine, in the middle of the night,
0:34:49 > 0:34:54not only have you got to come down one flight of stairs, you've got to come down two flights of stairs,
0:34:54 > 0:34:59you've got to battle with this outside door, go to the loo...
0:34:59 > 0:35:01Uh-uh - it's just not working for me.
0:35:01 > 0:35:05I really think, to make this place flow, you need to think about
0:35:05 > 0:35:09moving this kitchen into this room. You'd have a nice open-plan,
0:35:09 > 0:35:14sort of kitchen-diner feel. You could have a fantastic utility room through there.
0:35:14 > 0:35:17Make the bathroom a bit bigger, move the loo, put it in there.
0:35:17 > 0:35:20Now, I'm not saying you're not going to have drainage problems.
0:35:20 > 0:35:24You've got to think about the plumbing, but I'm just thinking about how you want
0:35:24 > 0:35:27to live, and I think that's the way to do it.
0:35:27 > 0:35:30You've got to make this kitchen somewhere you actually want to cook,
0:35:30 > 0:35:34rather than a dingy, dark cave with the bathroom right next door.
0:35:34 > 0:35:38As for that toilet, well, the lean-to has got to go.
0:35:38 > 0:35:44Who exactly is this convenience convenient for? It's practically an outside toilet.
0:35:44 > 0:35:47And the thought of that makes me shiver!
0:35:47 > 0:35:51# Shiver
0:35:53 > 0:35:55# Shiver... #
0:35:55 > 0:35:59And while we're outside, the distant views may be great,
0:35:59 > 0:36:04but this auction lot that was guided at £30,000-plus isn't as pleasing on the eye.
0:36:04 > 0:36:10Back inside, and what's fast becoming my obsession in this property - loos!
0:36:10 > 0:36:14I'd try to squeeze one up on the landing on the top floor.
0:36:14 > 0:36:18It might just be do-able. All those changes cost money, and the local housing market
0:36:18 > 0:36:23has a ceiling price. So, what would a local estate agent advise here?
0:36:26 > 0:36:29The house here is a slightly awkward configuration,
0:36:29 > 0:36:34with the bedrooms to the second floor and the bathroom and kitchen both to the basement levels.
0:36:34 > 0:36:38So the new owner is probably wise to consider perhaps looking to put a loo
0:36:38 > 0:36:41somewhere upstairs in this property, and perhaps increasing the size
0:36:41 > 0:36:44of the kitchen, which, at the moment, is fairly small.
0:36:44 > 0:36:48What effect would losing a bedroom have on the resale value?
0:36:48 > 0:36:53The potential value here would be in the region of £50,000. If the property
0:36:53 > 0:36:57was converted into a two-bed property, the potential sales value
0:36:57 > 0:36:59would be in the region of £40,000.
0:37:00 > 0:37:04But if the loo was moved upstairs, keeping three bedrooms,
0:37:04 > 0:37:09- what effect would that have on the rent?- Fully renovated, this property is worth
0:37:09 > 0:37:12between £350 and £375 per calendar month.
0:37:14 > 0:37:17What if the bathroom was moved upstairs into one of the bedrooms?
0:37:19 > 0:37:23If it was converted to a two-bed with an upstairs bathroom, the rent would
0:37:23 > 0:37:26be reduced to in the region of £325 per calendar month.
0:37:27 > 0:37:33A great rental, pure and simple. Work to do, though, but perfect
0:37:33 > 0:37:36for those who appreciate a view and have strong legs for the stairs.
0:37:36 > 0:37:39Let's see who went for this at the auction.
0:37:39 > 0:37:40Moving on to lot number 18 -
0:37:40 > 0:37:44freehold, three-bed, mid-terrace house, close to local amenities,
0:37:44 > 0:37:49with uPVC double glazing and gas central heating. £28,000 to get things started? 28?
0:37:50 > 0:37:5325 then, ladies and gentlemen. 25 to get me started. There we are!
0:37:53 > 0:37:57£25,000 and the hands go up. £25,000 I've got. £25,000 is bid.
0:37:57 > 0:38:006? £26,000. 27. 8.
0:38:00 > 0:38:02£28,000 I've got.
0:38:02 > 0:38:05£28,000 I have. And 9.
0:38:05 > 0:38:06Thank you. £29,000 is bid.
0:38:06 > 0:38:1030? £30,000. Thank you. £30,000 is bid.
0:38:10 > 0:38:13£30,500, thank you. £30,500. 1?
0:38:13 > 0:38:161 I've got. £31,000 I have.
0:38:16 > 0:38:19Looking for £31,500, ladies and gentlemen.
0:38:19 > 0:38:24OK. £31,000. If there isn't any advance on £31,000...
0:38:24 > 0:38:27OK, ladies and gentlemen, I can't do anything on that level.
0:38:27 > 0:38:30I'm looking for £31,500 to do anything.
0:38:30 > 0:38:31£31,500. There we are, sir.
0:38:31 > 0:38:35Where was you when I was asking in the first place?
0:38:35 > 0:38:38There we are, then. £31,500.
0:38:38 > 0:38:40Sir, what's your bidder's number?
0:38:40 > 0:38:44That successful bidder, slightly hidden from view, was Dennis,
0:38:44 > 0:38:48who was at the auction with his business partner, Mark. Dennis comes from Cardiff,
0:38:48 > 0:38:51and they run a central heating, kitchen and bathroom company.
0:38:51 > 0:38:53Very handy!
0:38:54 > 0:38:59I met Dennis back at the house to find out why he wanted it.
0:38:59 > 0:39:04- Dennis, congratulations. The property is yours, sir.- I know. - Are you shocked?
0:39:04 > 0:39:09Very shocked. It was a bit of a surprise...but happy.
0:39:09 > 0:39:13- So why was it a surprise? Because you were actually bidding for this. - We weren't going
0:39:13 > 0:39:16to go for this one at first. We were going to go for another lot.
0:39:16 > 0:39:20But that one went for a bit more than what we can bid up to, so my business partner
0:39:20 > 0:39:23asked, "Why don't we go for this one?" We hadn't even seen
0:39:23 > 0:39:27the property yet. It was only just down the road from the other one, so he said, "Let's go for it!"
0:39:27 > 0:39:30So you took a bit of a gamble on auction day, didn't you?
0:39:30 > 0:39:33- A very big gamble.- Were you relieved to see it's actually in an OK state? - Yes.
0:39:33 > 0:39:38We'll have a look round and see what needs doing and what can be done to improve it a little bit.
0:39:38 > 0:39:40And why have you bought this?
0:39:40 > 0:39:44Well, just as an investment, really, for me and my business partner.
0:39:44 > 0:39:47- So, are you looking to sell this on or rent it out?- Um, probably rent it
0:39:47 > 0:39:50for the first couple of years and maybe sell it on. Or even just keep
0:39:50 > 0:39:54on paying off the mortgage, and then happy days later on. There'll be
0:39:54 > 0:39:58a little more scope to invest in another one.
0:39:58 > 0:40:01# Oh, happy, happy days
0:40:03 > 0:40:06# I wish for you... #
0:40:06 > 0:40:09Happy days indeed! Dennis and his business partner, Mark,
0:40:09 > 0:40:14plan to spend just £5,000 on this three-storey terrace,
0:40:14 > 0:40:17making a total outlay of £36,500.
0:40:17 > 0:40:21They hope to get about £5,000 rental income a year -
0:40:21 > 0:40:25a yield of over 12%. What are the plans?
0:40:26 > 0:40:30Well, we're going to change the kitchen, because that's a little bit
0:40:30 > 0:40:34run-down. Redo the bathroom and the toilet. We're thinking of
0:40:34 > 0:40:38- also putting a new toilet upstairs. - You say "change the kitchen" -
0:40:38 > 0:40:40do you mean move the kitchen, or just update the kitchen?
0:40:40 > 0:40:44Update the kitchen. Update it. Cos the one at the moment is run-down.
0:40:44 > 0:40:48See, I think that will be a great space for a utility area.
0:40:48 > 0:40:52A much bigger bathroom with a downstairs toilet, a utility area, and then
0:40:52 > 0:40:57you've got yourself a nice, bright kitchen, dining, sitting area.
0:40:57 > 0:41:00Sounds good. I'll just put a few figures together and we'll see what
0:41:00 > 0:41:04the expense is. But I'll consider it.
0:41:04 > 0:41:07Now, what about the lean-to downstairs? Because you've got
0:41:07 > 0:41:11- an outside toilet.- Yes. Again, it's down to the drainage areas. I think
0:41:11 > 0:41:15if we just do it up, replace the toilet. If we can move it, we will,
0:41:15 > 0:41:18- but if we can't, we'll just leave it there where it is.- Aargh!
0:41:18 > 0:41:21You might be leaving the toilet outside?! I actually had a bit
0:41:21 > 0:41:26of a shiver! I opened the door and it was like, "I can't imagine going to the toilet out here!"
0:41:26 > 0:41:28Like I said, we'll just do the figures and see
0:41:28 > 0:41:32what the costs are. But if we're going to rent it first, we'll just do that brush-up.
0:41:32 > 0:41:36Oh, Dennis, I think it'll take a bit more than a brush
0:41:36 > 0:41:38to get this place sparkling.
0:41:41 > 0:41:45But I think I've made my point. Dennis and his partner have set
0:41:45 > 0:41:49an eight-week deadline, which they do want to meet. That's partly why
0:41:49 > 0:41:54a more basic job is on the cards. Still, it's an exciting time for Dennis.
0:41:54 > 0:41:57- Is this your first time being a landlord?- It's the first time
0:41:57 > 0:42:00being a landlord, but I'm up for a challenge. I'll do anything.
0:42:00 > 0:42:04- And it's the first house you've renovated?- First house I've renovated.
0:42:04 > 0:42:07- Are you quite nervous? - Very nervous, but I just can't wait.
0:42:07 > 0:42:10- Just can't wait.- Dennis, good luck with this property. I really hope
0:42:10 > 0:42:14- it goes well. Stay confident. - OK, thanks. Thank you.
0:42:16 > 0:42:21Well, Dennis and I disagree on what to do here. It's one thing
0:42:21 > 0:42:26making the place tidy, but the layout at the moment - well, it's just not working for me at all.
0:42:26 > 0:42:28I know he needs to keep his costs down,
0:42:28 > 0:42:30but that outside loo?! Uh-uh! Has to go.
0:42:30 > 0:42:33You can see if it does later on in the programme.
0:42:36 > 0:42:39All our buyers hope their journey has been worth it. They took
0:42:39 > 0:42:44- the right turns and avoided those pitfalls.- Yes. Decisions, decisions.
0:42:44 > 0:42:47Did they make the right ones? Time to go back and find out.
0:42:49 > 0:42:53Back now to Ramsgate in Kent, and this rabbit warren of a property
0:42:53 > 0:42:59in a conservation area. It consisted of 12 commercial units and eight fire-damaged flats,
0:42:59 > 0:43:02which husband and wife team Chris and Victoria
0:43:02 > 0:43:07bought at auction for £225,000. There was plenty to do here,
0:43:07 > 0:43:11but the couple were approaching it with their eyes wide open.
0:43:11 > 0:43:15I think even if the fires hadn't happened, we'd had to have done
0:43:15 > 0:43:19some alterations and refurb here anyway. So the fire has just caused us
0:43:19 > 0:43:24a few more problems, but it's made the price a lot better than it would be if this was an easy refurb.
0:43:26 > 0:43:31The total budget of the purchase fees and the work of £500,000
0:43:31 > 0:43:35was being provided by Russian business partners Anna, on the left, and her husband,
0:43:35 > 0:43:38Alexander, who wasn't there when I visited the first time.
0:43:40 > 0:43:45That meant around £27,000 for the renovations, and an eight-month timescale was the aim.
0:43:48 > 0:43:52We're back two-and-a-half years later, but Chris and Victoria
0:43:52 > 0:43:55are not. They've moved on to another project,
0:43:55 > 0:43:58and Anna and her husband Alexander have taken over.
0:44:04 > 0:44:08The uninhabitable eight flats have been completely refurbished.
0:44:15 > 0:44:17Clearly, it's been a big job.
0:44:25 > 0:44:29Well, if I had a hat, I'd take it off to Alexander and Anna.
0:44:30 > 0:44:33The flats are looking spick and span.
0:44:33 > 0:44:36They may have lost some of their period features, but it's hard to
0:44:36 > 0:44:41believe this enormous undertaking is the couple's first foray
0:44:41 > 0:44:42into property development.
0:44:44 > 0:44:47As Alexander doesn't speak English, it's Anna who explains
0:44:47 > 0:44:50the challenges they faced.
0:44:50 > 0:44:55This was quite an ambitious and big project, but by the end...
0:44:55 > 0:45:01It did take quite a long time. It was more than two years,
0:45:01 > 0:45:05and by the end, we coped well, I think.
0:45:06 > 0:45:09So now it's almost done.
0:45:11 > 0:45:14Where once there were eight flats, now there are nine, thanks to
0:45:14 > 0:45:19a one-bed-flat-sized bit of space they found on the first floor.
0:45:19 > 0:45:21Well, I did say it was a bit of a rabbit warren!
0:45:24 > 0:45:27Alexander and Anna haven't tackled the commercial units yet, but they
0:45:27 > 0:45:30do have a cunning plan.
0:45:30 > 0:45:34We would like to apply to have these offices
0:45:34 > 0:45:39converted to flats, and now, at the moment, we are waiting for a decision.
0:45:42 > 0:45:45If they do get permission to create two more flats, that would give them
0:45:45 > 0:45:5211 flats in total. Some they'd sell, some they'd rent out.
0:45:52 > 0:45:54Of the nine flats they've almost completed,
0:45:54 > 0:45:56three of them are two-bedroom flats
0:45:56 > 0:45:58and six of them are one-beds.
0:46:02 > 0:46:04Some of those are more like studio flats,
0:46:04 > 0:46:06but Anna has a particular favourite.
0:46:08 > 0:46:10I think the top flat.
0:46:10 > 0:46:15It definitely looks very different
0:46:15 > 0:46:17and very lovely.
0:46:17 > 0:46:21It's my favourite, because you can see the sea front and harbour
0:46:21 > 0:46:26from this flat. I think people will be quite happy to live there.
0:46:30 > 0:46:32So it's taken them longer than they'd hoped -
0:46:32 > 0:46:33almost two years longer.
0:46:33 > 0:46:37The original budget was around £275,000.
0:46:37 > 0:46:40How much have they ended up spending?
0:46:42 > 0:46:45That was about £250,000.
0:46:45 > 0:46:48That brings the total outlay on the project,
0:46:48 > 0:46:54including the £225,000 purchase price, to £475,000.
0:46:54 > 0:46:59There's still a bit to do, and those commercial units to think about.
0:47:01 > 0:47:05But we asked two local property experts to cast an eye over the work
0:47:05 > 0:47:06they've done so far.
0:47:06 > 0:47:09Coming back today, I'm absolutely amazed
0:47:09 > 0:47:11at the transformation of this property.
0:47:11 > 0:47:14It really has gone from a burnt-out wreck
0:47:14 > 0:47:19into some really very nice flats, and I think it's very good for the area.
0:47:19 > 0:47:21The layout of the properties is very unusual.
0:47:21 > 0:47:25My experience tells me that won't be particularly popular
0:47:25 > 0:47:29with some buyers. But if they're priced to reflect that, then I'm sure they'll sell.
0:47:29 > 0:47:33So if Alexander and Anna do go down that resale route,
0:47:33 > 0:47:36what do the experts think the flats could fetch?
0:47:37 > 0:47:41There are some studios and one-bedrooms. I would value those
0:47:41 > 0:47:45between £55,000 and £65,000. The two-bedroom apartments I would say
0:47:45 > 0:47:48are going to be somewhere between £80-85,000.
0:47:48 > 0:47:50The one-bedroom flats
0:47:50 > 0:47:53would be worth around about £65,000.
0:47:53 > 0:47:57And the two-bedrooms, we'd be looking at around about £85,000.
0:48:00 > 0:48:06Those valuations could mean a pre-tax profit of between £95,000
0:48:06 > 0:48:08and £170,000, minus the usual expenses,
0:48:08 > 0:48:11if they sell all the nine flats created so far.
0:48:11 > 0:48:15That's a pretty healthy return, if you ask me.
0:48:15 > 0:48:20But what about the potential rental income from the flats?
0:48:20 > 0:48:22A one-bedroom flat in this area
0:48:22 > 0:48:26I would imagine would be in the region of about £400 per calendar month.
0:48:26 > 0:48:30If we're looking at the two-bedrooms, which are always in high demand,
0:48:30 > 0:48:33then you're going to be looking probably at around about
0:48:33 > 0:48:35£500 per calendar month.
0:48:35 > 0:48:38I think the studios and one-bedrooms
0:48:38 > 0:48:40will be circa £400 per calendar month.
0:48:40 > 0:48:44The two-bedrooms could get somewhere around £500 per calendar month.
0:48:48 > 0:48:52Letting the six one-bedroom flats at £400 per month,
0:48:52 > 0:48:55and three two-beds at £500 a month
0:48:55 > 0:48:59would give Alexander and Anna a yield of just under 10%.
0:48:59 > 0:49:03On top of that, there's the potential for more income,
0:49:03 > 0:49:07depending on what they end up doing with the commercial units.
0:49:07 > 0:49:10So it's win, win, win for these two first-time developers,
0:49:10 > 0:49:12whichever way you look at it.
0:49:14 > 0:49:19This was the first project for us, so, hopefully, not the last.
0:49:23 > 0:49:26Earlier in the programme, we were in South Wales,
0:49:26 > 0:49:29one mile from Mountain Ash in the village of Penrhiwceiber.
0:49:29 > 0:49:31That's where Dennis, a gas fitter
0:49:31 > 0:49:36from Cardiff, bought this three-bed mid-terrace for £31,500.
0:49:38 > 0:49:42He bought the house as a joint first investment purchase
0:49:42 > 0:49:45with his friend and colleague, Mark.
0:49:45 > 0:49:49I thought this house, spread over three levels, needed configuring,
0:49:49 > 0:49:52not least because the only loo was on the lower ground floor
0:49:52 > 0:49:53in a lean-to. Ugh!
0:49:53 > 0:49:59The dungeon kitchen definitely needed a rethink, and I hoped Dennis would see it my way.
0:49:59 > 0:50:05- You say "change the kitchen" - do you mean move the kitchen, or just update the kitchen?- Update it.
0:50:05 > 0:50:09See, I think that would be a great space for a utility area. You know,
0:50:09 > 0:50:13a much bigger bathroom with a downstairs toilet, a utility area,
0:50:13 > 0:50:17and then you've got yourself a nice, bright kitchen, dining, sort of sitting area.
0:50:17 > 0:50:23Sounds good. I'll just put a few figures together and then we'll see what the expense is.
0:50:23 > 0:50:27Would the numbers stack up to make the most of this house?
0:50:29 > 0:50:32Three and a half months later, we've come back to find out.
0:50:32 > 0:50:34This looks promising...
0:50:37 > 0:50:39Just look at the new appliances and units!
0:50:42 > 0:50:44That serving hatch in the hall has been filled in,
0:50:44 > 0:50:47and there's a new door to the living room.
0:50:53 > 0:50:56Down on the lower ground level, I'm glad to see Dennis took my advice.
0:50:56 > 0:50:59Look at this kitchen.
0:51:03 > 0:51:05The wall between the former kitchen and original bathroom
0:51:05 > 0:51:10has been removed, creating a much bigger space for the new bathroom.
0:51:10 > 0:51:13As you can see, we've taken Lucy's advice, and I've converted
0:51:13 > 0:51:16the old dining room into a kitchen-cum-diner,
0:51:16 > 0:51:20and we had to make good a wall where we took the old fireplace out,
0:51:20 > 0:51:22so we can fit the kitchen in and the services.
0:51:22 > 0:51:27So what we did with the old kitchen is make that into a luxury bathroom.
0:51:29 > 0:51:33As you can see, this is the bathroom. Took a couple of weeks to do.
0:51:33 > 0:51:37We had to redo all the walls, retile everything, top to bottom. We fitted
0:51:37 > 0:51:41a new toilet, bath, and the shower and wash-hand basin.
0:51:41 > 0:51:46With all this extra effort we've put into this house, we hope that it'll help to sell it.
0:51:49 > 0:51:51I think I might have gone for a bigger wash-hand basin
0:51:51 > 0:51:53in what is now a large bathroom.
0:51:53 > 0:51:56I don't think you really need an over-bath shower
0:51:56 > 0:52:00as well as a shower cubicle, but the new loo is 100% better
0:52:00 > 0:52:03than being in the lean-to. Talking of which...
0:52:04 > 0:52:08The outside toilet is no longer going to be there. It's going to be a little utility room,
0:52:08 > 0:52:13for the washing machine and dishwasher, but we have put a new toilet in the new bathroom,
0:52:13 > 0:52:17and we have put one upstairs, so if anybody does want to get up in the middle of the night
0:52:17 > 0:52:20to go to the toilet, they haven't got to go down two flights of stairs.
0:52:20 > 0:52:25It saves a long journey, and somebody falling downstairs in the middle of the night, half-asleep!
0:52:25 > 0:52:28The loo and wash basin have still to be installed. Mind you,
0:52:28 > 0:52:32Dennis and Mark did face a challenge getting all the pipework up there.
0:52:33 > 0:52:37But the fact they managed to keep the three original bedrooms
0:52:37 > 0:52:42the same size should have a positive impact on the sale value of this house.
0:52:42 > 0:52:45Back on the ground floor, remember that bouncing wall?
0:52:45 > 0:52:48You can kind of, like, bounce off the walls in this house, literally!
0:52:48 > 0:52:52That was caused by plasterboard that had not been fixed properly.
0:52:52 > 0:52:57Now it's all been replaced, so no-one will be bouncing off the walls in here now.
0:52:57 > 0:53:00Apart from the tiling and plastering, Dennis and Mark
0:53:00 > 0:53:02have done all the other work here.
0:53:02 > 0:53:04But finding time to work on the house
0:53:04 > 0:53:07had taken a bit longer than they anticipated.
0:53:07 > 0:53:11It is the first little venture we've done together, and, um...it's been
0:53:11 > 0:53:15a bit of an experience. Tackled it a little bit slower than
0:53:15 > 0:53:19what we should have, but I think it's going to turn out fine at the end.
0:53:19 > 0:53:23They've actually spent just three weeks on the project, fitting it in
0:53:23 > 0:53:26around their full-time businesses. The front of the house has been
0:53:26 > 0:53:30repainted, and they plan to put a couple of fence panels and some turf
0:53:30 > 0:53:33at the back. So how's the budget holding out?
0:53:34 > 0:53:37My budget at the moment is about £5,000, but we did say
0:53:37 > 0:53:40at the beginning that it's going to be about £5-6,000,
0:53:40 > 0:53:46so I've still got at least another £1,000 to spend, so I think I should be well within budget.
0:53:48 > 0:53:50Keeping the budget to £6,000
0:53:50 > 0:53:54on top of the £31,500 that Dennis and Mark paid at auction
0:53:54 > 0:53:58would take their total investment here to £37,500.
0:54:00 > 0:54:04We invited two local estate agents to have a look around
0:54:04 > 0:54:08and give us their opinion of the property and its potential resale figure,
0:54:08 > 0:54:10as Dennis and Mark are intending to sell.
0:54:12 > 0:54:16The overall progress of the property is coming along very, very nicely.
0:54:16 > 0:54:17There are some nice benefits,
0:54:17 > 0:54:19certainly to the first floor,
0:54:19 > 0:54:22with a toilet and wash-hand basin. Ideal for families.
0:54:22 > 0:54:24The decision by the owner
0:54:24 > 0:54:27to remove the kitchen from its original position
0:54:27 > 0:54:31and to place it towards the rear of the property has been an inspired choice.
0:54:31 > 0:54:33The main attraction to this property is certainly
0:54:33 > 0:54:34that it's over three tiers.
0:54:34 > 0:54:38You've got your lower ground floor, which is your nice kitchen and bathroom area,
0:54:38 > 0:54:42and certainly good living space to the ground floor and first floors.
0:54:42 > 0:54:46If Dennis and Mark decided to let rather than sell the property,
0:54:46 > 0:54:48what rental income could they earn?
0:54:48 > 0:54:51There's a large demand for rental properties in this location,
0:54:51 > 0:54:55and you'd look to achieve £325 per calendar month.
0:54:55 > 0:54:59Once the property's finished, I would advise a rental market value
0:54:59 > 0:55:03of £400 per calendar month. Slightly higher than the average for the street here,
0:55:03 > 0:55:07but the owner has endeavoured to create something a little bit different here,
0:55:07 > 0:55:09and it will fetch a slightly higher value.
0:55:10 > 0:55:14Those incomes could produce a yield of between 10 and 12%
0:55:14 > 0:55:17if the higher figure was achieved.
0:55:17 > 0:55:20I'd like the £400 a month, but we were expecting almost £380, to
0:55:20 > 0:55:22be honest with you.
0:55:22 > 0:55:26I don't like the sound of the other one, £325. No, that's a no-goer.
0:55:26 > 0:55:30Not for the amount of work that we've done in this property.
0:55:30 > 0:55:33How much would the house be marketed for -
0:55:33 > 0:55:37more than the £37,500 that Mark and Dennis have invested?
0:55:39 > 0:55:43On completion of the works, we'd suggest a market figure of £45,000,
0:55:43 > 0:55:47with a realistic figure of £42,000 being achieved.
0:55:47 > 0:55:49There is a ceiling price in this area.
0:55:49 > 0:55:53In my opinion, this house will probably break that ceiling price slightly.
0:55:53 > 0:55:55Once the property is finished, I would advise
0:55:55 > 0:55:59a market value of between £50-55,000.
0:55:59 > 0:56:04That wide valuation range could generate a gross profit for them
0:56:04 > 0:56:09of between £4,500 and £17,500 before taxes and expenses.
0:56:12 > 0:56:15The top valuation I think is the better one to have,
0:56:15 > 0:56:21but realistically, I think it might go for around £50,000 to £48,000.
0:56:21 > 0:56:24Finding the time to work on this first joint development project
0:56:24 > 0:56:26has proved a challenge for Dennis and Mark,
0:56:26 > 0:56:28and there's still more to do.
0:56:28 > 0:56:31So, in the end, what does Dennis think of my advice?
0:56:33 > 0:56:35Considering it's the first time we've done this,
0:56:35 > 0:56:39it's nice to take somebody else's advice on board who's used to doing it.
0:56:39 > 0:56:40100% brilliant.
0:56:44 > 0:56:48Well, it's the end of the road for the buyers on today's programme,
0:56:48 > 0:56:50but there are plenty more where they came from.
0:56:50 > 0:56:55So for a chance to follow what happens to them, join us next time for more Homes Under The Hammer.
0:56:55 > 0:56:57- See you then.- Goodbye.- Bye.
0:57:02 > 0:57:05Subtitles by Red Bee Media Ltd