0:00:01 > 0:00:06Hello. Like many people, Lucy and I are extremely interested in property.
0:00:06 > 0:00:09And that means every aspect of it.
0:00:09 > 0:00:11I'm always on the look-out for a bargain.
0:00:11 > 0:00:13So where can you get hold of one?
0:00:13 > 0:00:16One option might be to go to your local auction.
0:00:41 > 0:00:45There are property auctions all over the country throughout the year
0:00:45 > 0:00:46so you really are spoilt for choice.
0:00:46 > 0:00:51So what properties made our buyers part with their cash on today's show?
0:00:51 > 0:00:53Let's find out.
0:00:54 > 0:00:57In Cumbria, I get my hands on quite a pair!
0:00:57 > 0:01:00This is the chimney breast from the two chimneys downstairs.
0:01:00 > 0:01:03One there, one there, coming up into a central chimney here.
0:01:04 > 0:01:09In east London, I bang the drum for fixing the peculiar layout
0:01:09 > 0:01:11of this first-floor flat.
0:01:11 > 0:01:12Ta-da!
0:01:14 > 0:01:18And in Derbyshire, who could ask for more than this?
0:01:18 > 0:01:24What you have here is just a really straightforward nice family house.
0:01:25 > 0:01:27All of these properties have been sold at auction.
0:01:27 > 0:01:32We'll find out who bought them and what they paid for them when they went under the hammer.
0:01:32 > 0:01:34Sold at 52,000.
0:01:38 > 0:01:43The town of Whitehaven is a popular place for Cumbrian commuters
0:01:43 > 0:01:45who want to live within easy reach of Carlisle.
0:01:45 > 0:01:48There are villages and small towns nearby
0:01:48 > 0:01:50that are definitely worth a look,
0:01:50 > 0:01:53not least because they're in such a beautiful landscape.
0:01:56 > 0:02:02Just outside Whitehaven is the small rural town of Cleator Moor.
0:02:02 > 0:02:04Absolutely stunning location,
0:02:04 > 0:02:07right on the edge of the Lake District fells.
0:02:07 > 0:02:12It's also got passing through it this, the coast-to-coast cycle route
0:02:12 > 0:02:16which takes you all the way from Whitehaven to the north-east coastline.
0:02:18 > 0:02:22Cleator Moor's skyline is dominated by the Dent Fell.
0:02:22 > 0:02:24So if you like the great outdoors,
0:02:24 > 0:02:26this is the place for you.
0:02:26 > 0:02:28If you prefer the great indoors,
0:02:28 > 0:02:30there's also a decent selection of shops.
0:02:32 > 0:02:35Just a few minutes' walk outside the centre
0:02:35 > 0:02:36is the property I'm here to see.
0:02:36 > 0:02:41Two-bedroomed mid-terrace. Had a guide price of 35,000 quid.
0:02:41 > 0:02:43Take a look!
0:02:46 > 0:02:48Not a lot of money, then. Do you get much property?
0:02:48 > 0:02:50Well, let's find out.
0:02:50 > 0:02:53Through the front door, straight into your living room.
0:02:53 > 0:02:54Yeah, it's OK.
0:02:54 > 0:02:58It doesn't smell damp. It looks like it's in half-decent condition.
0:02:58 > 0:03:01Stairs here up to the bedrooms.
0:03:01 > 0:03:04Then through to your rear sitting room.
0:03:04 > 0:03:07Originally that would be where the property would have ended.
0:03:07 > 0:03:10Basically this would have been the kitchen, et cetera.
0:03:10 > 0:03:13I notice there's a bit of damp going on in the corner here.
0:03:15 > 0:03:17That definitely needs to be checked out.
0:03:17 > 0:03:20But at some point, somebody has extended the property out here.
0:03:20 > 0:03:22And this now creates your kitchen.
0:03:22 > 0:03:25My guess is it's a single-storey extension.
0:03:25 > 0:03:28You're always dubious about whether it's been built properly,
0:03:28 > 0:03:31has it got cavity walls, but they look reasonably thick so hopefully they are.
0:03:31 > 0:03:34If you're going to find damp, you're more likely to find it here.
0:03:34 > 0:03:36But so far, so good.
0:03:36 > 0:03:39There's certainly accommodation on the ground floor
0:03:39 > 0:03:41thanks to the extension.
0:03:41 > 0:03:43And the kitchen looks to be in good condition.
0:03:43 > 0:03:45Apart from the damp in the rear reception room,
0:03:45 > 0:03:49the window's rotten, so that will need replacing.
0:03:49 > 0:03:52But there are some lovely original features.
0:03:52 > 0:03:56Upstairs, there's a bathroom suite in fair condition,
0:03:56 > 0:04:00which, given the colour, is a shame, really!
0:04:08 > 0:04:11The bedroom at the front of the house is a good-sized double.
0:04:11 > 0:04:18But hang on - we appear to be missing a bedroom in this allegedly two-bed mid-terrace!
0:04:20 > 0:04:22A-ha! This is where it is!
0:04:23 > 0:04:28Up here in what I imagine was originally the attic or loft space.
0:04:28 > 0:04:30It's described in the catalogue as having two bedrooms
0:04:30 > 0:04:33So it's obviously got the required planning permissions et cetera.
0:04:33 > 0:04:37You'd want to check whether or not it meets current building regulations
0:04:37 > 0:04:39but in terms of a space, I really like it.
0:04:39 > 0:04:42You've got a roof light throwing lots of light in here.
0:04:42 > 0:04:45It's reasonably lofty, which is good news,
0:04:45 > 0:04:47and then you've got this absolutely fantastic feature.
0:04:47 > 0:04:51This is actually the chimney breast from the two chimneys downstairs.
0:04:51 > 0:04:54One there, one there, coming up into a central chimney here.
0:04:54 > 0:04:57This is a real nice additional bonus to the property!
0:04:57 > 0:05:02It's a welcome surprise you could easily miss from the front of this house
0:05:02 > 0:05:06that went to auction guided at £35,000 plus.
0:05:06 > 0:05:09The pebble dash and windows appear OK,
0:05:09 > 0:05:11but the roof looks as though it's original.
0:05:11 > 0:05:14And it's a similar story at the rear of the property.
0:05:14 > 0:05:17But check it out, because as we saw inside,
0:05:17 > 0:05:19at least one window is rotten.
0:05:20 > 0:05:25Inside, the property pretty much like most two-bed terraces
0:05:25 > 0:05:27that you come across.
0:05:27 > 0:05:30But when you come out the back here, it all goes horribly right!
0:05:30 > 0:05:32There's a garden, which is quite long,
0:05:32 > 0:05:36but then at the end of it there is this.
0:05:36 > 0:05:40A most magnificent view of the Lake District fells.
0:05:40 > 0:05:42Fantastic!
0:05:55 > 0:05:57With its huge garden and fantastic views,
0:05:57 > 0:06:00at a guide price of £35,000 plus,
0:06:00 > 0:06:02this place ticks a lot of boxes.
0:06:02 > 0:06:06We invited a local estate agent to come and have a look at it
0:06:06 > 0:06:09and tell us where it sits in the local property market.
0:06:11 > 0:06:15The area's nice. There's quite a lot of families and older people.
0:06:15 > 0:06:19The property itself has got lovely views from the rear.
0:06:19 > 0:06:22Downstairs is quite sizeable.
0:06:22 > 0:06:24The upstairs is on the smaller side.
0:06:24 > 0:06:26Just having the one bedroom and an attic room.
0:06:27 > 0:06:31There's definitely potential to make more of the attic space.
0:06:31 > 0:06:36But is there any way of making the space more family friendly?
0:06:36 > 0:06:41You could actually put in a double extension so it gives you enough bedroom
0:06:41 > 0:06:44and also an extension of living accommodation downstairs.
0:06:44 > 0:06:46An extension's a possibility.
0:06:46 > 0:06:50But would it be worth spending the money on it if you were an investor?
0:06:50 > 0:06:52Let's crunch some numbers.
0:06:52 > 0:06:58What if this two-bed terrace guided at £35,000 plus was just renovated?
0:06:58 > 0:07:01What could it sell for, and what rent could it achieve?
0:07:01 > 0:07:07Once renovated, I imagine it would get somewhere in the region of £85,000.
0:07:07 > 0:07:13And for rental, you're talking probably round about £350 per calendar month.
0:07:13 > 0:07:17What impact would an extension have on those valuations?
0:07:17 > 0:07:22If you were to extend the property and put a two-storey extension on,
0:07:22 > 0:07:27you're probably talking about £95,000 for the re-sale
0:07:27 > 0:07:31and for rental probably round about 400 to £450 per calendar month.
0:07:33 > 0:07:37Hmm. Might be a bit tricky to make an extension work if you're an investor.
0:07:37 > 0:07:39But if you're buying to move in,
0:07:39 > 0:07:41you might just go for it.
0:07:42 > 0:07:47Well, it's a good-sized house in a really lovely location.
0:07:47 > 0:07:49There's work to be done inside,
0:07:49 > 0:07:51but all in all, I think a good one to go for.
0:07:51 > 0:07:54Let's see who agreed when it went under the hammer.
0:07:54 > 0:07:56Let's move on at 27.
0:07:56 > 0:07:59Two receptions, two-bedroomed mid-terraced property.
0:07:59 > 0:08:01Bedroom and bathroom to the first floor,
0:08:01 > 0:08:03second attic bedroom.
0:08:03 > 0:08:06Right. 35-plus. Let's get this one away.
0:08:06 > 0:08:0835, anyone?
0:08:08 > 0:08:09At 30, then?
0:08:09 > 0:08:1130 I've got seated.
0:08:11 > 0:08:13At £30,000 we're in.
0:08:13 > 0:08:1632? 32 I've got. 34.
0:08:16 > 0:08:2034. 36?
0:08:21 > 0:08:2336 I'm bid. And 38.
0:08:23 > 0:08:24And 40?
0:08:27 > 0:08:2839. And 40?
0:08:28 > 0:08:30And 41.
0:08:30 > 0:08:3242. 43.
0:08:32 > 0:08:34Shaking her head at 43.
0:08:34 > 0:08:38With you, sir, at 42. You've been with me all the way.
0:08:38 > 0:08:40At £42,000. Are you out, sir?
0:08:40 > 0:08:43At £42,000. First time.
0:08:43 > 0:08:4542 second time.
0:08:45 > 0:08:49And £42,000, then. Third and final time.
0:08:49 > 0:08:51All gone, all out. Selling away.
0:08:51 > 0:08:53You sir. Well done.
0:08:53 > 0:08:57That successful bid of £42,000 came from Neil
0:08:57 > 0:09:00who was at the auction with his wife, Joyce.
0:09:00 > 0:09:05Neil's a printer, and he and his wife live a quarter of a mile up the road.
0:09:05 > 0:09:08I met up with him at the two-bed mid-terrace
0:09:08 > 0:09:10to find out his plans for the property.
0:09:11 > 0:09:14- Neil, great to meet you.- You. - Congratulations.
0:09:14 > 0:09:17- Thanks very much.- Why did you want to buy this place?
0:09:17 > 0:09:22We've been looking for a cottage, a bit further, sort of semi-rural.
0:09:22 > 0:09:25Rather than being stuck in the middle of a town,
0:09:25 > 0:09:30more semi-rural, nice views from the front, back and side.
0:09:30 > 0:09:34So I was driving past it one day on the way to my mother-in-law's
0:09:34 > 0:09:37and I thought, "There's a house there. Shall we have a look?"
0:09:37 > 0:09:39So it just went from there, really.
0:09:39 > 0:09:42- Right.- Yeah, and we come up trumps with it.
0:09:42 > 0:09:44Apart from the views, what was it about the house you liked?
0:09:44 > 0:09:49When I first came to look at it, the estate agent showed us through
0:09:49 > 0:09:50and I didn't get to that door.
0:09:50 > 0:09:56I looked through, looked upstairs and walked back out and thought, "There's no potential in this."
0:09:56 > 0:09:59So I went back and I went for a bike ride.
0:09:59 > 0:10:01Then all of a sudden, I seen the potential.
0:10:01 > 0:10:05For some reason, I don't know why, I could see the potential and I could see it finished.
0:10:05 > 0:10:08So I came back and done another look at the house.
0:10:08 > 0:10:12Then I seen it in a totally and utterly different light.
0:10:17 > 0:10:21'I'm really pleased Neil's bike ride got him thinking
0:10:21 > 0:10:24'and that he decided to come back and take a second look.
0:10:24 > 0:10:30'Otherwise he could have missed out on this. What's he got planned for the inside?'
0:10:30 > 0:10:31What are you going to do to sort it out?
0:10:31 > 0:10:35My first impressions were open plan.
0:10:35 > 0:10:38I think we'll take away that wall
0:10:38 > 0:10:40which is the staircase,
0:10:40 > 0:10:42put another staircase in its place,
0:10:42 > 0:10:46open that fireplace up with a natural log burner.
0:10:46 > 0:10:51And I'll make a kitchen area through there and a nice utility.
0:10:51 > 0:10:56The bathroom, as it is now, I'm going to open all that up
0:10:56 > 0:10:58and put a new bathroom suite in.
0:10:58 > 0:11:01At the moment it's run off a header tank.
0:11:01 > 0:11:03So I'd be going combi-boiler.
0:11:03 > 0:11:06New radiators. Maybe replaster the walls.
0:11:08 > 0:11:10That's quite a long list of jobs,
0:11:10 > 0:11:13but Neil won't do all of it himself.
0:11:13 > 0:11:17His nephew, who's a builder, will be doing the structural work
0:11:17 > 0:11:20and he'll hire plasterers, electricians and other trades.
0:11:20 > 0:11:24Neil has already sold his own house to a work colleague
0:11:24 > 0:11:27so whilst he and his wife are waiting for this place to be finished,
0:11:27 > 0:11:31they're living in their holiday caravan on the Solway coast.
0:11:31 > 0:11:35Naturally, he's keen to get this finished before winter sets in.
0:11:35 > 0:11:39- And what's the budget?- I'm looking for no change out of £12,000.
0:11:39 > 0:11:46If it goes beyond that, I'm looking at 13, something like that.
0:11:46 > 0:11:50What about the top floor? There's an interesting attic room, isn't there?
0:11:50 > 0:11:52- Yeah.- What are you going to do with that?
0:11:52 > 0:11:58It's got a fantastic feature. The two chimney breasts running into one.
0:11:58 > 0:12:01I could just see a bed going in between it and a headboard.
0:12:01 > 0:12:04It'll be a second bedroom, definitely.
0:12:04 > 0:12:08Have you checked out if it's building regulation compliant?
0:12:08 > 0:12:11Not at the moment, no, but I'm hoping it is.
0:12:11 > 0:12:13It was sold as a two-bedroomed house.
0:12:13 > 0:12:16What about outside, at the back? There's a bit of space.
0:12:16 > 0:12:20There's a long narrow garden. It's overgrown.
0:12:20 > 0:12:22It needs doing.
0:12:22 > 0:12:24It'll be very, very low maintenance.
0:12:24 > 0:12:28Maybe a bit of decking. But definitely a lot of paving.
0:12:28 > 0:12:31- Great. Congratulations. - Thanks very much.
0:12:31 > 0:12:33- Good luck. Look forward to seeing how you get on.- No problem.
0:12:33 > 0:12:39A spontaneous purchase from Neil after a sudden change of heart about the place.
0:12:39 > 0:12:42But he certainly seems happy with it now, especially those views.
0:12:42 > 0:12:45Lot of internal walls coming out, though!
0:12:45 > 0:12:49Hope it's still here when we come back later in the show!
0:12:53 > 0:12:56This is Canning Town in east London.
0:12:56 > 0:13:01A place that seems to have suffered more than its fair share of lows over the years.
0:13:01 > 0:13:04Developed as an industrial area,
0:13:04 > 0:13:08it gained the reputation as one of the worst Victorian slums.
0:13:08 > 0:13:14Attempts to revamp it in the 1930s were thwarted by bombs in World War II.
0:13:14 > 0:13:19And in the 1960s, high-rises loomed over the landscape.
0:13:19 > 0:13:22But now, regeneration is on its way
0:13:22 > 0:13:25with nearly £4 billion of planned investment
0:13:25 > 0:13:29and a feeling things can change in Canning Town.
0:13:34 > 0:13:36They certainly can, can, can.
0:13:36 > 0:13:40There are really good transport links to the City and to Canary Wharf
0:13:40 > 0:13:44and the Olympics have brought nearby suburbs along in leaps and bounds.
0:13:44 > 0:13:46Now it's Canning Town's turn.
0:13:46 > 0:13:48High kicks all round.
0:13:50 > 0:13:53When it comes to housing stock in London,
0:13:53 > 0:13:56Victorian terraces are always best sellers.
0:13:56 > 0:14:00So I'm pretty pleased the property I'm here to see is at the end of this road.
0:14:00 > 0:14:03It's a top-floor flat and it had a guide price
0:14:03 > 0:14:07of 120,000 and three bedrooms.
0:14:07 > 0:14:10Seems a lot for a house of this size? Just check it out.
0:14:15 > 0:14:18Now, you might expect three beds if this was one whole house,
0:14:18 > 0:14:21But a three-bed first-floor flat?
0:14:21 > 0:14:23I've got to see this to believe it!
0:14:24 > 0:14:26I'm not going to be polite about this.
0:14:26 > 0:14:31Because it absolutely stinks of damp in this flat.
0:14:31 > 0:14:33So a bit worrying straightaway.
0:14:33 > 0:14:36You can see it's been neglected.
0:14:36 > 0:14:37All the plaster peeling off the wall.
0:14:37 > 0:14:43And the kitchen! Normally, you'd expect this room to be the bathroom.
0:14:43 > 0:14:44I've seen hundreds of these flats.
0:14:44 > 0:14:48And that's a really unusual place to put the kitchen.
0:14:48 > 0:14:53Here is the bathroom. Probably one of the smallest bathrooms I've ever seen.
0:14:53 > 0:14:56Very small bath. But I could live with that.
0:14:56 > 0:14:59And then right at the back of the property,
0:14:59 > 0:15:02is the tiniest of bedrooms!
0:15:02 > 0:15:05Look, that's the culprit. That's where the damp's coming in.
0:15:05 > 0:15:10Total neglect. It absolutely really does stink!
0:15:10 > 0:15:14And I know I'm always going on about "bring the outside in", but not literally!
0:15:14 > 0:15:17I mean, look. Really, really not a good start.
0:15:21 > 0:15:26The place is riddled with damp, so a full survey wouldn't go amiss here.
0:15:26 > 0:15:31Back past that teeny-weeny bathroom, past the titchy-witchy kitchen,
0:15:31 > 0:15:35towards the front of the house, where things start looking up a bit.
0:15:35 > 0:15:37At least this room is a decent size
0:15:37 > 0:15:39but what is it?
0:15:39 > 0:15:43One of the three bedrooms? I think this is probably the sitting room
0:15:43 > 0:15:47so there must be two more bedrooms above the front door.
0:15:47 > 0:15:49Oi-oi, that's a bit strange.
0:15:49 > 0:15:53This is where I expect to see two lovely sashed windows,
0:15:53 > 0:15:55the room bathed in sunlight.
0:15:55 > 0:15:57And this might be a bit of a clue.
0:15:57 > 0:15:59Ta-da!
0:15:59 > 0:16:03Yes, somebody has just shoved two walls up
0:16:03 > 0:16:05to create two separate rooms.
0:16:05 > 0:16:08You've got one here. Again, it's tiny.
0:16:08 > 0:16:10And this is poky!
0:16:10 > 0:16:12You would hardly get a single bed in here.
0:16:12 > 0:16:15It really isn't working for me.
0:16:15 > 0:16:17I would like to take all these walls down,
0:16:17 > 0:16:21open this space up and have a really nice living room.
0:16:21 > 0:16:25So that's sorted. Where's the kitchen going to go?
0:16:27 > 0:16:28Hmm. A bit of a puzzler.
0:16:28 > 0:16:33But I think the best bet is to re-jig the current kitchen/bathroom area
0:16:33 > 0:16:35and make a decent-sized bathroom there.
0:16:35 > 0:16:37Keep this room as the master bedroom,
0:16:37 > 0:16:42and make the front of the flat into an open plan kitchen/ dining room/living room.
0:16:42 > 0:16:46That would mean turning a three-bed flat into a two-bed.
0:16:46 > 0:16:49But the layout would work so much better!
0:16:49 > 0:16:51What does a local estate agent think?
0:16:53 > 0:16:55The number of bedrooms should be reduced to two.
0:16:55 > 0:16:57The three bedrooms are very small
0:16:57 > 0:16:58and they just don't work.
0:16:58 > 0:17:02It's been done for a rental purpose and it just doesn't suit the property.
0:17:02 > 0:17:04A man after my own heart!
0:17:04 > 0:17:08Bearing in mind the guide price of 120,000,
0:17:08 > 0:17:12what impact would re-jigging the flat have on the re-sale value?
0:17:14 > 0:17:18Converted back into a normal, a proper two bedroom
0:17:18 > 0:17:21should be around 230, £240,000.
0:17:21 > 0:17:24So still a very tidy potential profit there
0:17:24 > 0:17:26on that re-sale valuation.
0:17:26 > 0:17:28What about the rental market?
0:17:28 > 0:17:31The rental for this property
0:17:31 > 0:17:35as a two-bedroom would be between 1,100 and £1,200 per calendar month.
0:17:35 > 0:17:39This could be an attractive two-bedroomed flat
0:17:39 > 0:17:41in an area due for an uplift.
0:17:41 > 0:17:43Which may take values with it.
0:17:43 > 0:17:46Let's find out who fancied it at the auction.
0:17:48 > 0:17:51Move on now to 213.
0:17:51 > 0:17:53Three-bedroomed first-floor flat.
0:17:53 > 0:17:55140, anywhere?
0:17:56 > 0:17:58Somebody like to start me off?
0:17:58 > 0:18:01OK. We'll start there. 120 I've got.
0:18:01 > 0:18:03121 anywhere?
0:18:05 > 0:18:06121. Thank you. 122.
0:18:06 > 0:18:10123. 124. 125.
0:18:10 > 0:18:13126. 127. 128.
0:18:13 > 0:18:15129.
0:18:15 > 0:18:18129. 130. 131.
0:18:21 > 0:18:24131. Thank you. 132.
0:18:24 > 0:18:26133. 134.
0:18:26 > 0:18:28135.
0:18:30 > 0:18:34Have a think about it. It's with you, sir. Bid's at 134. 135.
0:18:34 > 0:18:38136. 137.
0:18:38 > 0:18:40137. 138.
0:18:40 > 0:18:42139. 140.
0:18:42 > 0:18:45141. 142. 143.
0:18:45 > 0:18:47144. 145.
0:18:47 > 0:18:50146. 147.
0:18:50 > 0:18:51148.
0:18:51 > 0:18:53149. 150.
0:18:53 > 0:18:55151.
0:18:56 > 0:18:58151, sir? No? OK.
0:18:58 > 0:18:59Leave you to it.
0:18:59 > 0:19:02The bid's with you, sir. £150,000.
0:19:02 > 0:19:04Against the gentleman in the middle.
0:19:04 > 0:19:06Anybody else for lot 113?
0:19:06 > 0:19:09If not, 150 for the first,
0:19:09 > 0:19:12150 for the second.
0:19:12 > 0:19:14151. Nearly.
0:19:14 > 0:19:16151. Sorry! 152.
0:19:16 > 0:19:19153. 154.
0:19:19 > 0:19:21155. 156.
0:19:22 > 0:19:24157.
0:19:25 > 0:19:27157. 158.
0:19:27 > 0:19:29159.
0:19:29 > 0:19:30No?
0:19:30 > 0:19:33Back with you. Bid's £158,000.
0:19:33 > 0:19:34Against the gentleman at the back there.
0:19:34 > 0:19:36Anybody else?
0:19:36 > 0:19:39If not, 158 for the first.
0:19:39 > 0:19:41158 for the second.
0:19:41 > 0:19:44158 for the third and final time. Are we all done?
0:19:44 > 0:19:47Sold. 158. Well done, sir.
0:19:48 > 0:19:52That successful bid of 158,000 was placed by Jason,
0:19:52 > 0:19:54who's a property developer.
0:19:54 > 0:19:59I met Jason's business partners, Adam and Trevor, back at the flat.
0:19:59 > 0:20:03Trevor spilled the beans on exactly what happened on auction day.
0:20:06 > 0:20:09I was there that day. When I turned up, it was very busy.
0:20:09 > 0:20:13And I looked at it and the lot number was 100 and something
0:20:13 > 0:20:18so I thought, "I don't want to stay here all day", but Jason stayed. He was bidding on a few lots.
0:20:18 > 0:20:21The ones he went to buy, he didn't get.
0:20:21 > 0:20:24So he stayed around. I went back to the office.
0:20:24 > 0:20:27He phoned me and said he'd seen a particular property,
0:20:27 > 0:20:31and I thought, "OK." And he told me what it was, a three bed.
0:20:31 > 0:20:34I thought, "OK. Sounds good." And he said he'd bid on it.
0:20:34 > 0:20:37Did some figures on it, told him, he went back to the auction.
0:20:37 > 0:20:39He phoned back ten minutes later and said, "I've got it."
0:20:39 > 0:20:41I thought, "Fine. Fantastic."
0:20:41 > 0:20:44So you hadn't even planned to buy this flat on the day?
0:20:44 > 0:20:46No. We hadn't seen it, either.
0:20:46 > 0:20:48You didn't want to walk away empty-handed.
0:20:48 > 0:20:50He didn't. He's very determined.
0:20:50 > 0:20:52He's that kind of character.
0:20:52 > 0:20:56But when we checked the documents, ten minutes later when I looked at it,
0:20:56 > 0:20:59I thought it was a three-bed house.
0:20:59 > 0:21:04So we had it in mind it was a house. Well, I had it in my mind it was a three-bed house.
0:21:04 > 0:21:06And it turned out to be a three-bed flat.
0:21:06 > 0:21:08So it was quite funny at the time.
0:21:08 > 0:21:12That's not really something to laugh at. There's quite a difference there in price.
0:21:12 > 0:21:15Three-bed house or three-bed flat. So you must have thought you had a bargain!
0:21:15 > 0:21:17- Yes!- Yeah.- But...
0:21:17 > 0:21:20So what's your involvement going to be in this project?
0:21:20 > 0:21:23Basically, I'll look after all the construction works
0:21:23 > 0:21:26that take place within this flat-not-house!
0:21:26 > 0:21:30OK. You've got a couple of walls that you can literally push down!
0:21:30 > 0:21:33Exactly. We shall be doing so.
0:21:33 > 0:21:37The figures actually still stack up even though it is a flat.
0:21:37 > 0:21:39So we were actually quite lucky!
0:21:42 > 0:21:45'I don't know if lucky is the word I'd choose!
0:21:45 > 0:21:50'Remember the golden rules? Do your homework, view the property and don't buy blind.
0:21:50 > 0:21:53'You could end up in a world of pain
0:21:53 > 0:21:56'or at the very least in a rather damp and dingy flat.
0:21:56 > 0:21:58'But these guys are seasoned property developers
0:21:58 > 0:22:02'and have the contacts to investigate the source of the damp.
0:22:02 > 0:22:05'So what are they going to do about the dodgy layout?'
0:22:07 > 0:22:11With your professional hat on, how do you see this property?
0:22:11 > 0:22:16Obviously whoever was here before has tried to cram in as many bedrooms as possible.
0:22:16 > 0:22:18How do you see it?
0:22:18 > 0:22:23Basically, we've applied for planning to turn it into a four-bed flat.
0:22:23 > 0:22:25- If it doesn't go through... - A four-bed flat?!
0:22:25 > 0:22:29- We can go up.- What?! I am so surprised you said that.
0:22:29 > 0:22:32- A four-bed flat?!- Yes. - It's bad enough as a three!
0:22:32 > 0:22:37We're going up. It's not out of what's existing. It'll go up a little.
0:22:37 > 0:22:41Otherwise, it'll be two-bed. So I'd knock down the wall next door
0:22:41 > 0:22:43and join both those rooms,
0:22:43 > 0:22:49bring it out a bit and have an open-plan living room / diner / kitchen area.
0:22:49 > 0:22:54- So you're going to move that kitchen.- Yes.- Good. It doesn't work there at the moment.
0:22:54 > 0:22:56And the bathroom will move into the kitchen space.
0:22:56 > 0:23:00And it'll open up that back bedroom a bit further as well.
0:23:00 > 0:23:02- Absolutely.- So that increases the size there.
0:23:02 > 0:23:05So you've got two good-sized bedrooms as opposed to lots of small ones.
0:23:05 > 0:23:08Do you think you'll get permission to go into the loft?
0:23:08 > 0:23:10We don't know till we try!
0:23:10 > 0:23:13Do you not think that might be overdevelopment of this flat?
0:23:13 > 0:23:15Possibly. But the thing is,
0:23:15 > 0:23:20if we can purchase the freehold, then we can look at our options from there.
0:23:20 > 0:23:22Whether we're going to rent it, we haven't decided.
0:23:22 > 0:23:25Whether we'll get the option to have planning on there
0:23:25 > 0:23:28and not do the work, just do it as a two-bed and then sell it on with the planning.
0:23:28 > 0:23:31We'll just decide what's best for us.
0:23:31 > 0:23:35What sort of budget have you got to do the work here if you go with the two-bed flat?
0:23:36 > 0:23:40Optimistically, we were coming out around £15,000.
0:23:40 > 0:23:42£15,000 to do the work.
0:23:44 > 0:23:45'They're giving their team three months
0:23:45 > 0:23:48'to turn the place back into a two-bed.
0:23:48 > 0:23:52'During that period, they'll look into their options for buying the freehold to the loft
0:23:52 > 0:23:54'and creating more space up there.
0:23:54 > 0:23:58'But these busy boys are in no real hurry to get this one finished
0:23:58 > 0:24:00'as they have other property irons in the fire.'
0:24:03 > 0:24:06How many projects have you got ticking over at the moment?
0:24:06 > 0:24:08Probably got seven or eight projects currently running.
0:24:08 > 0:24:11- So you are really busy.- Yes.- Yes. - You're flat out.
0:24:11 > 0:24:15Sounds like you might need to take somebody else on to do a bit of viewing for you!
0:24:15 > 0:24:19- What do you think?- Yep!- Good idea? - Yeah, great idea!
0:24:19 > 0:24:22Guys, congratulations. It's been great talking to you today.
0:24:22 > 0:24:25- Quite an exciting project. Well done.- Thank you.- Cheers.
0:24:25 > 0:24:28That is a bit of a big shock.
0:24:28 > 0:24:31Thinking you've bought a house and you end up with a ropey three-bed flat!
0:24:31 > 0:24:34Their plans are better thought out, though, I'm glad to say.
0:24:34 > 0:24:38Although a four-bed flat may be overkill.
0:24:38 > 0:24:41You can find out what they do later in the show.
0:24:42 > 0:24:47'Coming up: this property's garden tests my horticultural knowledge.'
0:24:47 > 0:24:50Trees and...stuff at the back there.
0:24:50 > 0:24:51It's lovely.
0:24:52 > 0:24:56'In east London, the transformation of this first floor flat
0:24:56 > 0:24:59'has to be seen to be believed.'
0:24:59 > 0:25:02It's fresh, it's clean, it's inspiring.
0:25:03 > 0:25:09'But first, in Cumbria, Neil's chuffed to bits with his refurbished attic space.'
0:25:09 > 0:25:12This room, definitely, is the room of the house.
0:25:15 > 0:25:20The Cumbrian town of Cleator Moor sits in spectacular countryside.
0:25:20 > 0:25:27This two-bed terraced house on the outskirts had a grandstand view of the Lake District fells.
0:25:27 > 0:25:30That was what attracted Neil and his wife, Joyce,
0:25:30 > 0:25:34who decided to move a quarter of a mile just to get a peaceful spot
0:25:34 > 0:25:37and boy, had they got one here!
0:25:37 > 0:25:40However, it wasn't love at first sight for Neil.
0:25:41 > 0:25:45When I first came to look at it, the estate agent showed us through
0:25:45 > 0:25:47and I didn't get to that door.
0:25:47 > 0:25:51I looked through, looked up the stairs and walked back out.
0:25:51 > 0:25:53I thought, "There's no potential in this."
0:25:53 > 0:25:57I went for a bike ride. Then all of a sudden, I saw the potential.
0:25:57 > 0:26:00For some reason, I could see the potential and I could see it finished.
0:26:00 > 0:26:02Bit of a back pedal, there.
0:26:02 > 0:26:06But Neil was intent on chasing this one down.
0:26:13 > 0:26:17He paid £42,000 at auction for the mid-terrace
0:26:17 > 0:26:21and planned some serious demolition work with the help of his nephew.
0:26:21 > 0:26:24He intended to remove the walls either side of the stairs
0:26:24 > 0:26:26to create an open-plan kitchen/diner.
0:26:26 > 0:26:29He'd set a budget of £12,000
0:26:29 > 0:26:32with an extra £1,000 contingency.
0:26:32 > 0:26:35He hoped to get the work completed in about three months.
0:26:36 > 0:26:39Seven months after our first visit,
0:26:39 > 0:26:42we're back to see how the mid-terrace is looking now.
0:27:02 > 0:27:04Wow! What a transformation!
0:27:04 > 0:27:07Opening up the downstairs has worked really well here.
0:27:08 > 0:27:11This room now is our new kitchen.
0:27:11 > 0:27:14It used to be the old parlour.
0:27:14 > 0:27:18We took the kitchen from the old utility area
0:27:18 > 0:27:21and we brought it into here.
0:27:21 > 0:27:25We took this wall out. This was basically a chimney breast.
0:27:25 > 0:27:29We took that out and decided to build, with the bricks that were left,
0:27:29 > 0:27:31a brick feature
0:27:31 > 0:27:33We've put nice drop lights in
0:27:33 > 0:27:37we've coved it and fully centrally heated.
0:27:38 > 0:27:41The original back door of the extension has been blocked up
0:27:41 > 0:27:44and new French doors installed.
0:27:45 > 0:27:49The stairs needed a 90-degree turn to provide head height
0:27:49 > 0:27:53and two steel joists now support the ceiling where the walls were removed.
0:27:54 > 0:27:57There were also layout changes in the bathroom.
0:27:58 > 0:28:01In the corner there was basically a big large cupboard,
0:28:01 > 0:28:03an airing cupboard. We pulled that out,
0:28:03 > 0:28:05made it a lot more spacious
0:28:05 > 0:28:09which enabled us to put a 1400mm walk-in shower
0:28:09 > 0:28:11and a free-standing bath.
0:28:11 > 0:28:13What a lovely room.
0:28:13 > 0:28:16Neil's really got the styling spot-on here.
0:28:21 > 0:28:24In the front bedroom, the colour choice is perfect.
0:28:24 > 0:28:28And just take a look at bedroom two up in the attic.
0:28:30 > 0:28:34This is the room that took the most time.
0:28:34 > 0:28:36We decided to put a dormer window in.
0:28:36 > 0:28:40To be able to do that, we had to put two steels in.
0:28:40 > 0:28:42These both held the weight of the dormer.
0:28:42 > 0:28:46This here, we chipped all the original plaster off
0:28:46 > 0:28:49and exposed the original brickwork.
0:28:49 > 0:28:51We repointed it.
0:28:51 > 0:28:54And then we're left with that feature there.
0:28:54 > 0:28:58This room, definitely, is the room of the house.
0:28:59 > 0:29:01Adding the dormer was a great move.
0:29:01 > 0:29:04Even on a winter's day, what a view of those fells!
0:29:11 > 0:29:13With this vista at the bottom of his garden,
0:29:13 > 0:29:17I can see why Neil's gone for the no-grass low-maintenance option.
0:29:17 > 0:29:21The house has new pebble dash, tiles on the roof
0:29:21 > 0:29:23and stone surrounds on the windows.
0:29:23 > 0:29:26Neil works full-time as a printer
0:29:26 > 0:29:30and employed his nephew, who owns a building company, to manage the project,
0:29:30 > 0:29:34although Neil's been on site three or four times a week.
0:29:34 > 0:29:36It's been a big refurbishment.
0:29:36 > 0:29:41All the interior doors have been replaced and a new combi boiler's been installed.
0:29:41 > 0:29:46Neil had a very long list of works for his rather tight budget.
0:29:46 > 0:29:48So how did that work out?
0:29:48 > 0:29:51I originally said 12 to £13,000.
0:29:51 > 0:29:54But with the dormer window, that wasn't in the budget,
0:29:54 > 0:29:57the French windows to the back added to the budget.
0:29:57 > 0:30:0212 to 13,000 soon turned into something like 19.
0:30:02 > 0:30:06With the £42,000 Neil paid at auction,
0:30:06 > 0:30:09that takes his total investment to 61,000.
0:30:09 > 0:30:11There's still work to do.
0:30:11 > 0:30:14Some tiles to go up in the kitchen and balustrades to add to the stairs
0:30:14 > 0:30:17then the house will be ready to move into.
0:30:20 > 0:30:22We invited two local estate agents
0:30:22 > 0:30:23to the refurbished house
0:30:23 > 0:30:25to hear what impression it makes on them.
0:30:27 > 0:30:29The actual finish is quite contemporary.
0:30:29 > 0:30:30The colours are neutral.
0:30:30 > 0:30:34But downstairs particularly with the woodburner and the country kitchen,
0:30:34 > 0:30:36it does retain that cottage feel.
0:30:36 > 0:30:38It really does suit the market,
0:30:38 > 0:30:41particularly for the location, the cottagey feel is really nice.
0:30:41 > 0:30:45I really like the kitchen in particular,
0:30:45 > 0:30:48and the bathroom is lovely. Really immaculate.
0:30:48 > 0:30:51The changes to the attic have made a massive difference to that room.
0:30:51 > 0:30:55But most importantly, it's opened up the views to the Ennerdale Fells.
0:30:55 > 0:30:59Neil and his wife Joyce are about to move in and make it their home.
0:30:59 > 0:31:02But how much rental income could the property generate
0:31:02 > 0:31:04if they had been looking to let?
0:31:04 > 0:31:09In the current market, I could get £375 per calendar month.
0:31:09 > 0:31:14I would rent this for 400 to £425 per calendar month.
0:31:14 > 0:31:18Those valuations would give a yield in the region of eight per cent.
0:31:19 > 0:31:21Very acceptable, really.
0:31:21 > 0:31:23But unfortunately,
0:31:23 > 0:31:28I'm not really interested in the rental business.
0:31:29 > 0:31:33Neil has invested £61,000 in this property.
0:31:33 > 0:31:35If he was looking to sell,
0:31:35 > 0:31:39both estate agents suggested he puts on the market for an initial asking price
0:31:39 > 0:31:42of £75,000.
0:31:42 > 0:31:45But to be prepared to accept slightly below that.
0:31:45 > 0:31:50So a potential profit of £14,000 before tax and expenses.
0:31:50 > 0:31:53But it doesn't sound like Neil's planning to move any time soon.
0:31:54 > 0:31:57It's going to be my home for quite a long time, I think.
0:31:57 > 0:32:01Unless another project comes up which lures me away from it.
0:32:01 > 0:32:04But at the moment, the sight of the Cumbrian Fells,
0:32:04 > 0:32:08I'm quite happy here. I'm quite happy here for the moment.
0:32:16 > 0:32:19I'm on the edge of the Peak District
0:32:19 > 0:32:20in the village of Ambergate.
0:32:20 > 0:32:24It's about a mile from Belper where the River Amber meets the River Derwent.
0:32:24 > 0:32:29The property I'm here to see is just in a little estate over there.
0:32:29 > 0:32:32But before you even get there, there's this lovely kids' park.
0:32:32 > 0:32:33It's all looking good so far.
0:32:41 > 0:32:46I've come to this lovely elevated spot above some stunning Derbyshire countryside
0:32:46 > 0:32:49to see a property that sold under the hammer.
0:32:50 > 0:32:53It was a three-bedroomed semi-detached
0:32:53 > 0:32:57with a guide price of £69,000 plus, and it's just here.
0:32:57 > 0:33:00The garden needs a bit of a tidy up
0:33:00 > 0:33:02but the house looks pretty well cared for.
0:33:03 > 0:33:05So, what do you get for your money?
0:33:05 > 0:33:07A little entrance area here.
0:33:07 > 0:33:09Stairs up to your bedrooms
0:33:09 > 0:33:11and then through into the lounge.
0:33:11 > 0:33:13First thing to notice is it's in quite nice condition.
0:33:13 > 0:33:17The carpet's reasonably good, the walls have been painted recently.
0:33:17 > 0:33:19It's got double glazing although it is quite old.
0:33:19 > 0:33:22No central heating by the look of it.
0:33:22 > 0:33:25They're storage or electric radiators so not ideal.
0:33:25 > 0:33:28You'd have to factor in the cost of putting in central heating.
0:33:28 > 0:33:31But in terms of layout, through the lounge into the kitchen.
0:33:31 > 0:33:33This is a bit of a disappointment.
0:33:33 > 0:33:36For a start, you've got this protrusion here
0:33:36 > 0:33:40which is taking away a lot of space, so that's not ideal.
0:33:40 > 0:33:44And then the kitchen units. They're serviceable, I suppose,
0:33:44 > 0:33:47but I'm more concerned about the layout.
0:33:47 > 0:33:49It just... It isn't working.
0:33:50 > 0:33:56There's something not quite right about accessing your kitchen off the sitting room.
0:33:56 > 0:33:59It's not ideal when you've got armfuls of shopping bags.
0:33:59 > 0:34:02But I think there is a solution in the front hall.
0:34:04 > 0:34:07I reckon that isn't a proper wall.
0:34:07 > 0:34:09That's been put in at some stage after the house was built.
0:34:09 > 0:34:12It's blocked off what the natural corridor would be into the kitchen.
0:34:12 > 0:34:17Take that out, and suddenly you've got a much better feel for this property.
0:34:22 > 0:34:24Change the layout,
0:34:24 > 0:34:28and the flow of this house that went to auction guided at £69,000 plus,
0:34:28 > 0:34:30would only be improved.
0:34:30 > 0:34:33I wonder if upstairs has any issues?
0:34:35 > 0:34:38So, up here, any nasties to discover?
0:34:38 > 0:34:40Probably not, but you never know.
0:34:40 > 0:34:42Got the bathroom at the top of the stairs.
0:34:42 > 0:34:45It's a bit old-fashioned!
0:34:45 > 0:34:48A white suite in there would make a big difference.
0:34:48 > 0:34:50But that's something to consider anyway.
0:34:50 > 0:34:52A box room there.
0:34:52 > 0:34:57Another sort of slightly small bedroom there which isn't ideal,
0:34:57 > 0:35:00but it's compensated for by the fact that the front bedroom, the master bedroom,
0:35:00 > 0:35:02is a really nice size.
0:35:02 > 0:35:06Nice window with views out over the hills and stuff there.
0:35:06 > 0:35:10And possibly enough space to put in an en-suite. I don't know if you'd bother.
0:35:10 > 0:35:17All in all, what you've got is just a really straightforward nice family house.
0:35:19 > 0:35:22But there is still room for improvement.
0:35:22 > 0:35:25The second bedroom is a small double.
0:35:25 > 0:35:28You could move the wall between it and the master bedroom
0:35:28 > 0:35:30which is plenty big enough.
0:35:31 > 0:35:34But whatever you do, the views from up here to the front
0:35:34 > 0:35:37and the back are just fantastic.
0:35:39 > 0:35:41A really nice bit of news.
0:35:41 > 0:35:43A good garden. It's quite hilly
0:35:43 > 0:35:45but it's just lovely.
0:35:45 > 0:35:48It's got great character, this little bit here.
0:35:48 > 0:35:53You've got this rockery bit and brilliantly, trees and stuff at the back there.
0:35:53 > 0:35:55It's lovely.
0:35:57 > 0:36:00To learn a little bit about the local property market,
0:36:00 > 0:36:03we invited an estate agent to come and have a look around.
0:36:06 > 0:36:10The property itself is one of those very solid ex-local authority houses.
0:36:10 > 0:36:13It's had some basic modernisation. It's quite presentable.
0:36:13 > 0:36:17But it does need a bit of TLC to make it just right for moving in.
0:36:17 > 0:36:20It's ticking boxes, then.
0:36:20 > 0:36:22After a refurbishment,
0:36:22 > 0:36:24how much could it be worth on the open market?
0:36:25 > 0:36:28When renovated, this property could achieve £110,000
0:36:28 > 0:36:30maybe a little bit more in really good order.
0:36:30 > 0:36:33What effect would a good refurbishment have
0:36:33 > 0:36:35on the potential rental income here?
0:36:37 > 0:36:39The rental market for this type of property is very strong.
0:36:39 > 0:36:44There's very little rental accommodation available in this area so it would let almost overnight.
0:36:44 > 0:36:46I would think around £525 per calendar month.
0:36:48 > 0:36:51What is there not to like about this property?
0:36:51 > 0:36:55It needs a bit of work to modernise it, but I think it's a real auction find.
0:36:55 > 0:36:57Let's see who agreed when it went under the hammer.
0:36:59 > 0:37:01Lot number 16.
0:37:01 > 0:37:03An improved three-bedroomed semi-detached house
0:37:03 > 0:37:06in a cul-de-sac location.
0:37:06 > 0:37:08A proxy bid in on this property.
0:37:08 > 0:37:11I'll start the bidding at £70,000 on a proxy bid.
0:37:11 > 0:37:1471 at the back. 72 with me.
0:37:14 > 0:37:1872. 73? 73. 74.
0:37:18 > 0:37:2175 somewhere else?
0:37:21 > 0:37:24Commission bid at 74. 75.
0:37:24 > 0:37:2576.
0:37:25 > 0:37:2777. 78.
0:37:28 > 0:37:3178. Commission bid at 78,000.
0:37:31 > 0:37:3379.
0:37:33 > 0:37:3480,000.
0:37:35 > 0:37:3681?
0:37:37 > 0:37:40£80,000. The bid's with me. It's in the market.
0:37:40 > 0:37:4280,000 for the first time.
0:37:42 > 0:37:4580 and a half. 81 with me.
0:37:45 > 0:37:4881,500, sir? 81,500.
0:37:48 > 0:37:51The proxy's out. 81,500. The bid's in the room.
0:37:51 > 0:37:54At 81,500. 82, quickly, somewhere else?
0:37:54 > 0:37:57At £81,500 once.
0:37:57 > 0:37:59Twice. Third time.
0:37:59 > 0:38:02Sold at 81,500. Thank you.
0:38:03 > 0:38:06That successful final bid of 81,500
0:38:06 > 0:38:10was made by Paul, a full-time developer.
0:38:10 > 0:38:14Apart from this house, he owns ten other properties plus his own home.
0:38:14 > 0:38:17I met him back at his latest purchase
0:38:17 > 0:38:19to hear about his plans.
0:38:20 > 0:38:24- Paul, pleased to meet you.- Pleased to meet you, Martin, I really am.
0:38:24 > 0:38:28- Congratulations on this place. - Thank you.- Tell me why you wanted to buy it.
0:38:28 > 0:38:30It ticks all the boxes.
0:38:30 > 0:38:32It's where I want to be at the moment.
0:38:32 > 0:38:37I think that it's a house in a place that's family orientated.
0:38:37 > 0:38:40I think, yes, it needs things to do. It's tired.
0:38:40 > 0:38:44But I think I can do it justice and I think I can do something with it
0:38:44 > 0:38:47and turn it round and make a rough diamond into a shiny diamond.
0:38:47 > 0:38:50Well done. Is this something you do, or have done before?
0:38:50 > 0:38:52Yes, I've been doing this for 12 years.
0:38:52 > 0:38:56I started off looking after my parents' properties.
0:38:56 > 0:38:58Learnt the business.
0:38:58 > 0:39:00Still look after my parents' properties.
0:39:00 > 0:39:03And wanted to do my own thing.
0:39:03 > 0:39:06So with that, I bought a few properties myself
0:39:06 > 0:39:08and carried on and carried on
0:39:08 > 0:39:11and built up to where I am now.
0:39:11 > 0:39:15Right. Obviously the last 12 years have been an interesting period in the property world!
0:39:15 > 0:39:18- Yes.- Have you sort of ridden the rollercoaster?
0:39:18 > 0:39:20You have to do your research.
0:39:20 > 0:39:23You have to have the right team of people around you.
0:39:23 > 0:39:25But there are bargains out there to be got.
0:39:25 > 0:39:28If you've got a passion for what you do,
0:39:28 > 0:39:31you'll find them and you'll make something out of it.
0:39:31 > 0:39:33- You obviously have the passion. - Oh, I love it.
0:39:33 > 0:39:35I love it. People say I'm a workaholic.
0:39:35 > 0:39:39"Haven't you got time to do anything else, Paul?"
0:39:39 > 0:39:43But I think you've got to do that to be successful.
0:39:43 > 0:39:45You've got to live it, you've got to want it and you've got to love it.
0:39:45 > 0:39:49Brilliant. Let's talk about this house. Why this particular one?
0:39:49 > 0:39:55I've been looking for a while. I'm on one at the moment, which is when you tend to look for the next one.
0:39:55 > 0:39:57This was one I was interested in.
0:39:57 > 0:40:02I felt that it would be a nice family home and that's why I bought it.
0:40:02 > 0:40:04Tell me what you're going to do to it.
0:40:04 > 0:40:07The usual things. I see central heating, I see double glazing.
0:40:07 > 0:40:09I see kitchen, I see bathroom.
0:40:09 > 0:40:13I don't particularly like the flow of the property as you walk in.
0:40:13 > 0:40:16I feel we need to open up in the hallway
0:40:16 > 0:40:18and make the passageway through into the kitchen.
0:40:18 > 0:40:22Behind the wall of the lounge there's outhouses.
0:40:22 > 0:40:25- So I hope to break into there.- Oh.
0:40:25 > 0:40:29One, to give a bit of light and bring the garden into the lounge.
0:40:29 > 0:40:31And also a bit more room.
0:40:31 > 0:40:35- And also take a corner off to add to the kitchen.- Right.
0:40:35 > 0:40:37- You know?- Sounds like a great plan.
0:40:44 > 0:40:47Paul is certainly taking this rough diamond in hand.
0:40:47 > 0:40:51I really think the changes he's planning for downstairs sound great.
0:40:51 > 0:40:53He's had a think about the first floor
0:40:53 > 0:40:56and is opting to refurbish that totally
0:40:56 > 0:40:58but will keep the existing layout.
0:40:58 > 0:41:01So what does he intend to do with the renovated property?
0:41:01 > 0:41:04My A plan is to sell it.
0:41:04 > 0:41:08And my B plan, if the market isn't right,
0:41:08 > 0:41:13then to rent it and re-borrow on it and carry on in the same vein.
0:41:13 > 0:41:15What's the budget for sorting it out?
0:41:15 > 0:41:1915,000. There is a contingency for more.
0:41:19 > 0:41:22You get a feeling when you go round and you've done a few properties,
0:41:22 > 0:41:27if a couple of rooms need replastering, you know how much because you've had it done before.
0:41:27 > 0:41:32So when you go to auction, you're always totting these figures up.
0:41:32 > 0:41:36Which helps to give you a guide of how far to go with it.
0:41:36 > 0:41:38I would have gone up to 85.
0:41:38 > 0:41:42But I got it for 81,500. There is £1,000 I have to pay towards costs as well.
0:41:42 > 0:41:47But I did look at the legal pack so I knew that.
0:41:47 > 0:41:50- One rule I did break, I didn't come into the house.- Ahh!
0:41:50 > 0:41:52I know. But I did look through the windows
0:41:52 > 0:41:58and went next door to see the house next door and talk to the people about the area.
0:41:59 > 0:42:01Paul's a big Homes Under The Hammer fan,
0:42:01 > 0:42:04so well knows it's one of our golden rules
0:42:04 > 0:42:06to view a property inside.
0:42:06 > 0:42:10But in this case at least he did do some other sensible research
0:42:10 > 0:42:14and, of course, he does have 12 years' experience under his belt.
0:42:14 > 0:42:17So what's the timescale for sorting this one out?
0:42:17 > 0:42:22I'm going to say four to five months and you'll probably say that's a bit of a time,
0:42:22 > 0:42:24but I'm saying that because we're on a property already.
0:42:24 > 0:42:28So we'll finish that which is a month or just over a month to do
0:42:28 > 0:42:30and then we'll be on here.
0:42:30 > 0:42:33If it all goes to plan you'll make a reasonable profit
0:42:33 > 0:42:34- and move on to the next one.- Yeah.
0:42:34 > 0:42:41I love what I do anyway. With houses, unless you really make a lot of mistakes,
0:42:41 > 0:42:44you'll do OK.
0:42:44 > 0:42:48It might not be straightaway, it might be a few years down the line,
0:42:48 > 0:42:50but generally, you should do OK.
0:42:50 > 0:42:53Will it be you doing most of the work, or at least overseeing it?
0:42:53 > 0:42:56I'll source all the things I want.
0:42:56 > 0:42:58I've got a team of people that work with me
0:42:58 > 0:43:02and basically know how I like things to be done. And go from there.
0:43:02 > 0:43:04Congratulations. Good to meet you.
0:43:04 > 0:43:07- I look forward to seeing how you get on.- Thank you, Martin.
0:43:07 > 0:43:09Really glad to see you. OK. Thank you.
0:43:10 > 0:43:16Well, Paul giving an almost textbook account of how to be a proper property developer.
0:43:16 > 0:43:18I don't think he'll have any issues with this one.
0:43:18 > 0:43:24The only thing will be will he manage to sell it in these still quite tough market conditions.
0:43:24 > 0:43:26Find out how he gets on later in the show.
0:43:29 > 0:43:33There's been plenty of time for our buyers to have started work on their properties.
0:43:33 > 0:43:37But have they been beset by disasters?
0:43:37 > 0:43:40Who knows? Time is money, so have they made it or lost it?
0:43:40 > 0:43:44Let's go back and find out what's been happening.
0:43:46 > 0:43:48Back now to Canning Town, east London
0:43:48 > 0:43:51and this three-bed flat with a very peculiar layout.
0:43:54 > 0:43:59Property developer Jason had bought it at auction for 158,000
0:43:59 > 0:44:03but it soon became clear that Jason and his business partners Adam, on the left here,
0:44:03 > 0:44:07and Trevor, on the right, were not all on the same page!
0:44:09 > 0:44:12I had it in my mind I was buying a three-bed house
0:44:12 > 0:44:14and it turned out to be a three-bed flat!
0:44:14 > 0:44:16So I phoned him up. It was quite funny at the time.
0:44:16 > 0:44:19That's not something to laugh at! There's quite a difference in price.
0:44:19 > 0:44:21Three-bed house or three-bed flat?
0:44:21 > 0:44:25- You must have thought you had a bargain.- Yes!- But a flat...- Yeah.
0:44:27 > 0:44:29The boys had designs on the loft space
0:44:29 > 0:44:34but first they were planning to spend 15,000 and three months converting the flat back
0:44:34 > 0:44:35to a two-bed.
0:44:35 > 0:44:40Three and a half months later, it's time to check up on the Canning Town flat.
0:44:40 > 0:44:43MUSIC: Can You Feel The Love by Elton John
0:45:11 > 0:45:13Yes, I think we're all feeling the love here.
0:45:13 > 0:45:18The flat is transformed and the new layout works so much better than before.
0:45:18 > 0:45:21Over to you, Adam.
0:45:21 > 0:45:24Here in the kitchen it was actually two bedrooms.
0:45:24 > 0:45:28We had a partition wall that ran across the middle, with a doorway.
0:45:28 > 0:45:31That all needed to come out to create this living area
0:45:31 > 0:45:33along with the kitchen space.
0:45:33 > 0:45:36When we took the partition down, the ceiling came down
0:45:36 > 0:45:38so we had to re-board it.
0:45:38 > 0:45:44We had to move the boiler from the kitchen, which is now the bathroom, into here.
0:45:44 > 0:45:49And we've had to put a vent through to the exterior wall.
0:45:49 > 0:45:51To create this open living space.
0:45:54 > 0:45:56The changes at the back of the flat,
0:45:56 > 0:45:59moving the bathroom to where the tiny kitchen was,
0:45:59 > 0:46:01and enlarging the second bedroom
0:46:01 > 0:46:05mean the flat now has a layout which actually makes sense.
0:46:05 > 0:46:07Yeah, the layout is fine.
0:46:07 > 0:46:11It works in a nice way. It flows.
0:46:11 > 0:46:16It's contemporary, it's fresh, it's clean. It's inspiring.
0:46:16 > 0:46:19It's very bright so it works well.
0:46:21 > 0:46:25Nice one, Trevor. And boy, am I glad to see they've sorted out the damp problem.
0:46:25 > 0:46:29It was toe-curlingly bad on my first visit.
0:46:31 > 0:46:33The main problem with the damp was in the hall area.
0:46:33 > 0:46:36We had a bit of ingress down by the front door.
0:46:36 > 0:46:39We injected by the front in the hallway
0:46:39 > 0:46:43and up in these bedrooms cos it was quite bad and smelly in here as well.
0:46:43 > 0:46:46Once we took back the plaster and had it all inspected,
0:46:46 > 0:46:48it turns out it was just real serious condensation.
0:46:48 > 0:46:50So we lit the boiler. Once it was up and running,
0:46:50 > 0:46:53for a good couple of days to dry out the place,
0:46:53 > 0:46:55replastered and it's all absolutely fine now.
0:46:57 > 0:47:00What about their plans to go up into the loft
0:47:00 > 0:47:03and create two more bedrooms and an en-suite?
0:47:03 > 0:47:09A planning application's going in to put an extra floor above this one here to create more space.
0:47:09 > 0:47:14We've got designs, we've done the drawings and the layout and it looks fantastic.
0:47:15 > 0:47:18The boys are not yet sure if they'll sell the flat on
0:47:18 > 0:47:20or keep it and rent it out.
0:47:20 > 0:47:22As and when they get permission to go up into the loft,
0:47:22 > 0:47:24they'll make a call as to whether they do the work
0:47:24 > 0:47:28or maybe sell on with that planning permission in place.
0:47:30 > 0:47:32They've pretty much kept to their three month timescale.
0:47:32 > 0:47:36But what about their rather optimistic 15 grand budget?
0:47:37 > 0:47:41It was 19 to £20,000 but we did keep it reasonable
0:47:41 > 0:47:46despite the fact that we've got what appear to be high-end fixtures and fittings.
0:47:46 > 0:47:48So we've done quite well
0:47:48 > 0:47:50but lost a bit of hair over it, as you can see!
0:47:50 > 0:47:52But no, it's all gone well.
0:47:55 > 0:47:58A £20,000 spend would bring the total outlay here
0:47:58 > 0:48:00to 178,000.
0:48:00 > 0:48:03We asked two local estate agents for their thoughts on this renovation.
0:48:07 > 0:48:09It looks really nice. They've done a really nice job.
0:48:09 > 0:48:13They've done it aesthetically with the age of the building.
0:48:13 > 0:48:19It works really well and there's certainly a market for this type of conversion.
0:48:19 > 0:48:22It's definitely going to appeal to a first-time buyer.
0:48:22 > 0:48:24Someone getting on to the property ladder for the first time.
0:48:24 > 0:48:27Or maybe even an investor in this area
0:48:27 > 0:48:30because you'll get a very good rental return for a two-bed here.
0:48:30 > 0:48:33So if the boys do go down that rental route,
0:48:33 > 0:48:38what kind of income do the experts think this refurbished flat might achieve?
0:48:40 > 0:48:44We would expect it to achieve £1,300 per calendar month.
0:48:44 > 0:48:48I would expect to achieve somewhere around 1,300 to £1,500.
0:48:49 > 0:48:55Those rental valuations would mean a yield of between 10 and 11.5 per cent
0:48:55 > 0:48:56which is not bad at all.
0:48:56 > 0:48:58What about selling the place on?
0:49:00 > 0:49:06I would expect the property to achieve somewhere in the region of 250,000, at the stamp duty level.
0:49:06 > 0:49:09We'd probably market it slightly over, just to see what the market says.
0:49:09 > 0:49:15We would expect it to achieve anything between £250,000 to £260,000.
0:49:15 > 0:49:18- Hmm. That's not bad.- Yeah. I'm all right with that.
0:49:18 > 0:49:20250 to 260 is fantastic.
0:49:20 > 0:49:22- Yep.- Especially for a property we hadn't even seen!
0:49:22 > 0:49:26- So it's happy days. - We've done all right there.
0:49:27 > 0:49:33A profit before tax and expenses of between 72 and 82,000
0:49:33 > 0:49:35really is very happy days!
0:49:35 > 0:49:39But will they let their business partner buy blind for them next time?
0:49:40 > 0:49:42No, certainly not.
0:49:42 > 0:49:45But again, the price was enough that we could take a risk.
0:49:45 > 0:49:49Anything higher than what this was, no we wouldn't do it.
0:49:52 > 0:49:55Back now to Ambergate on the edge of the Derbyshire Peak District.
0:49:55 > 0:49:58Full-time property developer Paul
0:49:58 > 0:50:02had bought this three-bedroomed semi in an elevated position
0:50:02 > 0:50:07with wonderful open views for £81,500.
0:50:08 > 0:50:11He currently owns ten other properties that he lets out.
0:50:11 > 0:50:15The dated decor in this place needed updating
0:50:15 > 0:50:19and Paul planned some structural changes to the downstairs layout.
0:50:20 > 0:50:24I don't particularly like the flow of the property as you walk in.
0:50:24 > 0:50:27I feel we need to open up in the hallway
0:50:27 > 0:50:29and make the passageway through into the kitchen.
0:50:29 > 0:50:34Behind the wall of the lounge there are outhouses.
0:50:34 > 0:50:36So I hope to break into there,
0:50:36 > 0:50:40one to give a bit of light into the lounge
0:50:40 > 0:50:43and also take a bit of a corner off to add to the kitchen.
0:50:44 > 0:50:50Paul had set a budget of £15,000 with a contingency fund and allowed four to five months for the work
0:50:50 > 0:50:53as he had another property to finish first.
0:50:55 > 0:50:57Well, it's now seven months later
0:50:57 > 0:51:01and back in Ambergate, he's keen to show off the finished results.
0:51:01 > 0:51:05And the wait's been well worth it.
0:51:17 > 0:51:20The hall now does lead through to the kitchen.
0:51:25 > 0:51:28And the former coal stores have gone,
0:51:28 > 0:51:35replaced with French doors which gives valuable extra space in the living room.
0:51:35 > 0:51:38There's new double glazing throughout
0:51:38 > 0:51:42plus central heating, and a new combi-boiler in the kitchen.
0:51:42 > 0:51:48Quite a bit's changed in here because I felt it was a bit small
0:51:48 > 0:51:51but you can't do too much about doing extensions.
0:51:51 > 0:51:57So I decided to open the kitchen up by reinstating the door
0:51:57 > 0:52:01but doing that meant that I took all the units away.
0:52:01 > 0:52:03What I decided to do then
0:52:03 > 0:52:06was to take the pantry out
0:52:06 > 0:52:09just so you could get like a nice turn round
0:52:09 > 0:52:11and use the pantry space.
0:52:11 > 0:52:14So we had to put the RSJ in.
0:52:14 > 0:52:17I wondered then where to put the cooker
0:52:17 > 0:52:21so I decided to take a corner out of the outbuildings
0:52:21 > 0:52:22from where the lounge is,
0:52:22 > 0:52:26put the cooker in there in its own personal space,
0:52:26 > 0:52:28and I'm happy with how it's gone.
0:52:29 > 0:52:33Utilising the space from the former coal stores has made such a difference.
0:52:33 > 0:52:35Obviously this is the lounge.
0:52:35 > 0:52:39What we had here was a wall going straight across
0:52:39 > 0:52:45which we knocked out and brought through with the French doors at the end.
0:52:45 > 0:52:48Beyond the French doors we had a retaining wall
0:52:48 > 0:52:51which was about two foot away from where the French doors are now.
0:52:51 > 0:52:56So I felt that we had to go back with that and make a patio area
0:52:56 > 0:53:00cos if you didn't, you'd have a walk out with nowhere to go, really.
0:53:00 > 0:53:03So we excavated out there and we did that.
0:53:03 > 0:53:07And I think it's made a nice lovely room.
0:53:08 > 0:53:11Upstairs, the layout of the three bedrooms hasn't changed.
0:53:13 > 0:53:15Just the decor.
0:53:15 > 0:53:20Including this floral feature wall in the main bedroom,
0:53:20 > 0:53:22er, which makes quite a bold statement!
0:53:22 > 0:53:25But the peach bathroom suite has gone.
0:53:27 > 0:53:30Bad weather delayed the completion on Paul's other property,
0:53:30 > 0:53:33so work on this house did take five months.
0:53:33 > 0:53:37Good going considering what his builders had to do outside
0:53:37 > 0:53:40to make the most of the elevated position.
0:53:41 > 0:53:44When I first came to view the property,
0:53:44 > 0:53:46I noticed it was a very sunny area
0:53:46 > 0:53:48with nice views.
0:53:48 > 0:53:52So I thought this would be spot on for a decking area
0:53:52 > 0:53:53which obviously we've made it into.
0:53:55 > 0:53:58Paul had budgeted £15,000 for the refurbishment, with a contingency.
0:53:58 > 0:54:01Did he need that extra money?
0:54:02 > 0:54:05Yes, 15,000, I said.
0:54:05 > 0:54:08It has took five more. It has been 20,000.
0:54:08 > 0:54:10But I feel I've got value for my money.
0:54:10 > 0:54:13With the 81,500 he paid at auction,
0:54:13 > 0:54:16plus the £1,000 in costs mentioned in the legal pack,
0:54:16 > 0:54:19that takes his total investment here
0:54:19 > 0:54:21to £102,500.
0:54:24 > 0:54:27We invited two local estate agents to view the property.
0:54:27 > 0:54:31What does the agent who saw it originally think of the finish
0:54:31 > 0:54:33that Paul's achieved here?
0:54:33 > 0:54:36I think taking the outbuildings down was a good move.
0:54:36 > 0:54:39It's made the property a bit bigger and also brighter.
0:54:39 > 0:54:42I like the property. I think the location is absolutely superb.
0:54:42 > 0:54:45It's been presented very nicely.
0:54:45 > 0:54:50Tastefully. And all in all, a very good property. Very saleable.
0:54:50 > 0:54:53I thin there are certain aspects to the decor.
0:54:53 > 0:54:55Particularly the floral patterns
0:54:55 > 0:54:57that might marginalise some people.
0:54:57 > 0:55:00But the overall look is very homely and feels warm.
0:55:00 > 0:55:04Paul is looking to sell, but there is a healthy rental demand locally.
0:55:05 > 0:55:08If we put this property within our rental portfolio,
0:55:08 > 0:55:12I would say around the £550 a month mark.
0:55:12 > 0:55:16There's very little rental property available in this location.
0:55:16 > 0:55:18The property would let almost overnight.
0:55:18 > 0:55:22I would expect it to achieve around £550 per calendar month.
0:55:22 > 0:55:25A potential yield of over six per cent, then.
0:55:25 > 0:55:27But what about the resale value?
0:55:27 > 0:55:32Is the house worth more than the £102,500 Paul has invested?
0:55:32 > 0:55:35I think a realistic asking price for this property on the open market
0:55:35 > 0:55:38would be £109,950.
0:55:38 > 0:55:41I'd put this on the market at 125,000,
0:55:41 > 0:55:44with a view to receive offers around the 120,000 area.
0:55:44 > 0:55:52That valuation range from a shade under 110 to the stamp duty threshold of 125,000
0:55:52 > 0:55:56would produce a gross profit of between 7,500 and £22,500
0:55:56 > 0:55:58before tax and expenses.
0:56:02 > 0:56:04Well, we're round about the sort of region I thought.
0:56:04 > 0:56:08Obviously the stamp duty threshold is 125.
0:56:08 > 0:56:10If I can get it for round about that sort of figure,
0:56:10 > 0:56:15what I've paid for it to the return, I've got to be happy at that.
0:56:15 > 0:56:18Paul's love for property developing is infectious.
0:56:18 > 0:56:21And after 12 years, he's rather good at it.
0:56:27 > 0:56:30Daft question, I expect, but what's next for Paul?
0:56:30 > 0:56:32Onwards and upwards, really.
0:56:32 > 0:56:34I like the challenge.
0:56:34 > 0:56:37As you can see, I have a passion for the job.
0:56:37 > 0:56:39It's what I do. It's what I love
0:56:39 > 0:56:42and it's what I want to carry on doing.
0:56:44 > 0:56:48That's it for now. We'll have more auction stories for you next time
0:56:48 > 0:56:51to inspire or possibly scare you away!
0:56:51 > 0:56:55- Yes, on Homes Under The Hammer. See you then.- Goodbye!- Goodbye!
0:57:17 > 0:57:19Subtitles by Red Bee Media Ltd