0:00:02 > 0:00:04Hello. Now, we are always being told to save for our future.
0:00:04 > 0:00:09Yes, people are searching for ways to add to their pensions.
0:00:09 > 0:00:14Property could be one option and the auction rooms are the place to head for.
0:00:39 > 0:00:45If, like us, you're hoping that property will be a safe investment, you need to buy wisely.
0:00:45 > 0:00:49That means doing your research and sniffing out those deals.
0:00:49 > 0:00:53So did the buyers on today's show do just that? Let's find out.
0:00:53 > 0:00:56In Cumbria, this two-bed terrace doesn't give me
0:00:56 > 0:00:59any lofty ideas until I get to the top.
0:00:59 > 0:01:03This would almost be my favourite room in the house.
0:01:04 > 0:01:09This three-bed semi in Middlesex has plenty going for it, but it's not all adorable.
0:01:09 > 0:01:14Look, cupboards here, doors, sliding action, it is all going on.
0:01:14 > 0:01:21The real joy of this place in Lincolnshire isn't the tired bungalow, but its huge garden.
0:01:21 > 0:01:25If somebody wanted a bit of space in the country here, it doesn't get much better than this.
0:01:25 > 0:01:28All these properties have been sold at auction
0:01:28 > 0:01:32and we'll find out who bought them and what they paid for them when they went under the hammer.
0:01:32 > 0:01:34You, sir, well done.
0:01:37 > 0:01:41This lovely rural setting in Cumbria is a place
0:01:41 > 0:01:44that owes its existence and name to Isaac William Fletcher,
0:01:44 > 0:01:48who started a coal mine here in the 1870s.
0:01:48 > 0:01:54Today, I'm in the small rural hamlet of Fletchertown near Wigton in Cumbria.
0:01:54 > 0:02:01Not much more than a couple of streets of houses built to house workers in the local mine.
0:02:01 > 0:02:04The property I'm here to see is an end terrace.
0:02:04 > 0:02:07It has a guide price of £30,000-£40,000.
0:02:07 > 0:02:11Do you know what? From the outside, it doesn't look half bad.
0:02:14 > 0:02:19There's a bit of a porch area to keep out the Cumbrian weather,
0:02:19 > 0:02:23then it's into your front living room.
0:02:23 > 0:02:29It looks OK. There are doors lying around all over the place. Somebody has started renovation.
0:02:29 > 0:02:34Stairs in the middle here leading up to your bedrooms and through to the rear of the property,
0:02:34 > 0:02:38where somebody has relocated the kitchen.
0:02:38 > 0:02:45It works. I like the breakfast bar area and although the units are tired and dated,
0:02:45 > 0:02:51I would keep the layout as it is. New units in here and it will make all the difference in the world.
0:02:51 > 0:02:53And there's more.
0:02:53 > 0:02:55The layout of this kitchen does work
0:02:55 > 0:02:57so it's ten out of ten for that.
0:02:57 > 0:03:03Unfortunately, there are plenty of signs of work begun but not completed.
0:03:03 > 0:03:05The downstairs bathroom gets no points for layout
0:03:05 > 0:03:10and how many marks out of ten would you give the avocado suite?
0:03:10 > 0:03:15Upstairs, there are two reasonable sized bedrooms
0:03:15 > 0:03:17and more signs of work started.
0:03:17 > 0:03:22There is a lot still to do like tackling some of the rotten floorboards.
0:03:22 > 0:03:25However, the cast-iron fireplaces are a real bonus.
0:03:25 > 0:03:30So far, this place seems like a good buy for that guide price of £30,000-£40,000.
0:03:30 > 0:03:33And there's more. There's a well-worn staircase.
0:03:33 > 0:03:38It looks a bit rickety to me, but just for you, I will tread carefully.
0:03:38 > 0:03:44The stairs may be a bit dodgy, but what they lead to certainly isn't.
0:03:44 > 0:03:46It's a real find.
0:03:46 > 0:03:53A window, for a start, which is throwing light into a surprisingly nice attic room
0:03:53 > 0:03:56obviously been created at some point.
0:03:56 > 0:03:58I doubt it was originally here in the property,
0:03:58 > 0:04:01but somebody has done a nice job of turning this into a really useable space.
0:04:01 > 0:04:07You've got the roof light, you've got the window there. Get the stairs sorted out
0:04:07 > 0:04:11and then this would be one of my favourite rooms in the house.
0:04:11 > 0:04:16The auction catalogue describes the house has been laid out over three floors
0:04:16 > 0:04:21with two bedrooms and a "useful" attic room, which would suggest that the loft conversion
0:04:21 > 0:04:26doesn't meet the strict building regulations to qualify as a third bedroom.
0:04:26 > 0:04:30But even if you didn't want to spend a vast amount of time or money
0:04:30 > 0:04:34making it regulation compliant, it's still a terrific indoor space.
0:04:34 > 0:04:40Outside, at the front, the pebble dash seems OK and there are double glazed windows.
0:04:40 > 0:04:43What is the situation around the back?
0:04:43 > 0:04:47At the rear of the property, it is a bit shabby.
0:04:47 > 0:04:50You have this lean-to and this extension,
0:04:50 > 0:04:54which houses the bathroom and loo, and this dog kennel.
0:04:54 > 0:04:59It looks like it could do with knocking down, but it is functional.
0:04:59 > 0:05:02You could put up with it.
0:05:02 > 0:05:10Through the little courtyard there onto this back alley area and open countryside at both ends.
0:05:10 > 0:05:13That's why you're going to buy this place.
0:05:13 > 0:05:15The rural location is great,
0:05:15 > 0:05:18but Fletchertown doesn't have a DIY store.
0:05:18 > 0:05:23So you would need transport to get to the nearby town of Wigton for your supplies.
0:05:23 > 0:05:26# If you are working on your house or working on a shed
0:05:26 > 0:05:29# If you are building up a rock or flower bed
0:05:29 > 0:05:32# Whatever you need and a whole lot more
0:05:32 > 0:05:37# They've got it all over at the hardware store. #
0:05:37 > 0:05:40To investigate the potential once a refurbishment has been done,
0:05:40 > 0:05:43we asked the auctioneer who sold the property
0:05:43 > 0:05:44to come and have a look at it.
0:05:44 > 0:05:51What are his thoughts on this two-bed house that went to auction guided at £30,000-£40,000?
0:05:51 > 0:05:55The positives with this property is that it's priced well
0:05:55 > 0:05:57therefore it's very affordable.
0:05:57 > 0:06:00Good-sized rooms and good number of rooms, well proportioned.
0:06:00 > 0:06:06If there is a downside to this property, it's where it is situated
0:06:06 > 0:06:09in this small hamlet where you would need a car.
0:06:09 > 0:06:15There are bus routes, but it's not walking distance to any larger conurbation.
0:06:15 > 0:06:21And if you have got a car, across the road is a very useful parking space.
0:06:21 > 0:06:25Once the house has been refurbished, how much could it sell for?
0:06:25 > 0:06:31Once renovated, this property could achieve a figure approaching £80,000
0:06:31 > 0:06:35If the new owner's a buy-to-let investor and looking to rent it out,
0:06:35 > 0:06:38what sort of income could the place generate?
0:06:38 > 0:06:41Once renovated and exposed to the rental market,
0:06:41 > 0:06:45it would achieve a figure of around £400 per calendar month.
0:06:45 > 0:06:49It needs a bit of work, but nothing too taxing
0:06:49 > 0:06:54and you can't knock the location, so a good project for somebody.
0:06:54 > 0:06:57Let's find out who that was when it went under the hammer.
0:06:57 > 0:07:02Right, we're off to Fletchertown now. Let's get it away nice and quickly.
0:07:02 > 0:07:06Do I see a hand at £30,000? It must be worth 30 to somebody.
0:07:06 > 0:07:0930? 30 here. At 30 we're away.
0:07:09 > 0:07:1230, I am bid. 31 over here.
0:07:12 > 0:07:1432 may I see?
0:07:14 > 0:07:1833, 34, 35, 36,
0:07:18 > 0:07:2337, 38, 39 and 40.
0:07:23 > 0:07:26One, two, shaking your head at two.
0:07:26 > 0:07:32With you at 41. Take a half? And two. And a half.
0:07:32 > 0:07:36Shake of the head at that. With you at 42.
0:07:36 > 0:07:3943, 43 shall I say?
0:07:39 > 0:07:4444, 45, 46, 47.
0:07:44 > 0:07:50With you at 46, first-time, second time, put you out of your misery.
0:07:50 > 0:07:52All done. All out.
0:07:52 > 0:07:55Third and final time to you, sir. Well done.
0:07:55 > 0:08:02That final bid of £46,000 was made by Paul who was at the auction with his girlfriend, Abby.
0:08:02 > 0:08:08Paul's a self-employed electrician who lives about ten miles away in Aldoth.
0:08:08 > 0:08:13I met him at the two-bed terrace to hear about his plans.
0:08:13 > 0:08:16- Paul, great to meet you. Congratulations.- Thank you very much.
0:08:16 > 0:08:19Tell me why you wanted to buy this place.
0:08:19 > 0:08:22Just seen it as a real investment opportunity.
0:08:22 > 0:08:27I went to auction hoping it would go for the right price and I believe I got it for the right price.
0:08:27 > 0:08:31Is this something you've done before?
0:08:31 > 0:08:34No, this is the first one and hopefully of many. I'll keep going.
0:08:34 > 0:08:37Is this your first house purchase per se?
0:08:37 > 0:08:41No, I live at home with my father, but I bought this house
0:08:41 > 0:08:44as an investment opportunity, not to live in myself.
0:08:44 > 0:08:47Why this particular house?
0:08:47 > 0:08:50I know the area. A lot of my friends live local to here
0:08:50 > 0:08:53and they'll be doing quite a bulk of the work,
0:08:53 > 0:08:58so it made sense to get somewhere quite close and it saves a lot of travelling.
0:08:58 > 0:09:01It'll cut down on the cost.
0:09:01 > 0:09:07Paul may only be 21, but this young electrician sounds pretty switched on as a developer.
0:09:07 > 0:09:13He has thought about the extra costs that the inexperienced often forget to factor in,
0:09:13 > 0:09:18like travel, and he has also carefully considered the long-term.
0:09:18 > 0:09:23He plans to sell eventually, but in the short term, he's renovating for the rental market.
0:09:23 > 0:09:25What are you going to do to sort it out?
0:09:25 > 0:09:28I'm going to install a new kitchen, new bathroom.
0:09:28 > 0:09:31There's quite a bit of plastering work to do.
0:09:31 > 0:09:36A new floor on the first floor. It's rotten. It's not really safe.
0:09:36 > 0:09:43There's quite a bit of work to the steps going up into the attic room.
0:09:43 > 0:09:48- Who's going to do the work? - I'll do as much work as I can as I am a qualified electrician.
0:09:48 > 0:09:51I'll be in amongst quite a few other trades as well.
0:09:51 > 0:09:54And also some of my good friends...
0:09:54 > 0:09:57I've got someone in every line of work. It's ideal.
0:09:57 > 0:10:02- That makes a difference, having a team in place.- Yes, it does.
0:10:02 > 0:10:06What work will you be able to do? You'll be doing the rewiring?
0:10:06 > 0:10:09Yes, rewiring. I will run the central heating pipes.
0:10:09 > 0:10:11Any decorating.
0:10:11 > 0:10:16My brother's a joiner, hopefully he'll set us off and I'll be able to take over from that.
0:10:16 > 0:10:20I want to have a go at everything. I'll be alongside the tradesmen throughout,
0:10:20 > 0:10:24so I get a feel for it myself and learn as much as I can.
0:10:24 > 0:10:28- Doing it alongside another job? - Yes, I am self-employed.
0:10:28 > 0:10:34I've got a job subcontracting for a couple of days and I'm taking a step back from that
0:10:34 > 0:10:39to focus on the property and try and get it turned around as fast as I can.
0:10:39 > 0:10:41Impressive stuff.
0:10:41 > 0:10:45It sounds like Paul has all the get up and go required to build himself a great portfolio.
0:10:45 > 0:10:50He wants to turn it over quickly. What does that mean?
0:10:50 > 0:10:55Originally, I was thinking no more than three months, but I have just booked a holiday
0:10:55 > 0:10:57so that'll put us back a couple of weeks.
0:10:57 > 0:11:00It shouldn't be far off target.
0:11:00 > 0:11:04- What about the budget?- Hoping to come in about £14,000.
0:11:04 > 0:11:08I'm not going to scrimp on things. I want it to be nicely finished off.
0:11:08 > 0:11:13- What are you going to do with the lean-to conservatory?- I'm undecided.
0:11:13 > 0:11:18One option is to take it down and open it up as a yard.
0:11:18 > 0:11:24The other option is to build up to it and extend, which some houses further down the street have done.
0:11:24 > 0:11:28Planning should be quite easy to gain.
0:11:28 > 0:11:31What about the future, what's next on the agenda?
0:11:31 > 0:11:34Buy another as soon as possible.
0:11:34 > 0:11:36I'll be going straight back to auction.
0:11:36 > 0:11:41In an ideal world, how many properties would you like in five years' time?
0:11:41 > 0:11:44My business plan is to have at least ten properties in the next five years.
0:11:44 > 0:11:50Obviously, they'll be on mortgages, but, hopefully, I'll have folk renting to cover them.
0:11:50 > 0:11:52- Good. Congratulations.- Thank you very much.- Good luck with it.
0:11:52 > 0:11:55- Cheers.- We'll look forward to seeing how you get on.- Thank you.
0:11:55 > 0:11:58What a great project for Paul's first foray
0:11:58 > 0:12:02into the world of property investing and developing.
0:12:02 > 0:12:07I'm sure he'll do just great, especially with the help of friends and colleagues.
0:12:07 > 0:12:11Will this little lean-to area be here when we come back?
0:12:11 > 0:12:12You can find out later in the show.
0:12:17 > 0:12:21This is Hampton in Middlesex near Richmond upon Thames,
0:12:21 > 0:12:24an old village which is a village no more.
0:12:24 > 0:12:29It has a cool urban vibe with plenty of shops, eateries and some pretty good schools.
0:12:29 > 0:12:33In fact, all that commuters could desire.
0:12:33 > 0:12:37When Londoners move to the suburbs for that better quality of life,
0:12:37 > 0:12:41they console themselves by thinking that the train journey
0:12:41 > 0:12:45into town is short enough, it won't make much difference.
0:12:45 > 0:12:47But they forget the schlep to the station,
0:12:47 > 0:12:51which eats into valuable sleep time, but not in this case,
0:12:51 > 0:12:57because Hampton Station is a brisk two-minute walk that way and the house is here.
0:12:57 > 0:13:03It's got three bedrooms and had a guide price of £380,000.
0:13:04 > 0:13:09That nearby station will whisk you to Waterloo in just 40 minutes, or 40 winks,
0:13:09 > 0:13:15from this lovely quiet street and this charming Victorian semi.
0:13:15 > 0:13:18I do like to walk into a nice reception area.
0:13:18 > 0:13:22Wow! High ceilings, love it.
0:13:22 > 0:13:27A bit dated, but you could really wow this place up.
0:13:27 > 0:13:32Nice reception room. Not sure about those grey bricks, they might have to go.
0:13:32 > 0:13:35Second reception room,
0:13:35 > 0:13:39there could be a nice fireplace lurking underneath that board.
0:13:39 > 0:13:42Corridor leading to the kitchen.
0:13:42 > 0:13:46Loads of storage space. You could even fit a downstairs loo in.
0:13:46 > 0:13:48A little cupboard. Oh, no, that is a downstairs loo!
0:13:48 > 0:13:52Fantastic! It's always nice to have a loo downstairs.
0:13:52 > 0:13:56You have got great space in the kitchen. All terribly dated, this needs to come out.
0:13:56 > 0:14:02A bright new kitchen should go in. Look at these sashes. They are in great nick.
0:14:02 > 0:14:05You could make this property spectacular.
0:14:05 > 0:14:06I really like it.
0:14:06 > 0:14:08It's a good start with the interior.
0:14:08 > 0:14:12Outside, the garden is a decent size for a house like this.
0:14:12 > 0:14:16With a bit of work, it could be made a welcoming haven on a summer's evening.
0:14:16 > 0:14:23There is a lean-to, which I think would be better rebuilt as a part of an extended kitchen.
0:14:23 > 0:14:26Upstairs is also dated, but far from disastrous.
0:14:26 > 0:14:30The front bedroom is the full width of the house, nice and bright.
0:14:30 > 0:14:33The second bedroom is also a lovely size and at the rear,
0:14:33 > 0:14:37the third bedroom is small although usable.
0:14:37 > 0:14:40But, and there is always a but...
0:14:40 > 0:14:42This is the bit I don't like.
0:14:42 > 0:14:46It's incredibly narrow, it's a bit dull, low ceilings.
0:14:46 > 0:14:50Look, cupboards here, doors, slidey action. It's all going on.
0:14:50 > 0:14:54What I think you need to do is get rid of this cupboard
0:14:54 > 0:14:58because you've got a big water tank. Get rid of that. Have a combi boiler.
0:14:58 > 0:15:03Take this away and you'll get a much nicer outlook as you come up the stairs.
0:15:03 > 0:15:08Then you can afford to have a proper bathroom door, not this slidey old thing.
0:15:08 > 0:15:11It would really improve this space.
0:15:11 > 0:15:16Once you've done that, you can afford to knock the toilet and the bathroom together
0:15:16 > 0:15:20to make a lovely big family bathroom. I think that would work.
0:15:20 > 0:15:23That's a simple change to make in the grand scheme of things,
0:15:23 > 0:15:27but is there a possibility of bigger changes?
0:15:27 > 0:15:33You're expecting me to say extend to the side, go up into the loft,
0:15:33 > 0:15:37spend the cash and push this place to the limits of its value.
0:15:37 > 0:15:39But I am going to play devil's advocate.
0:15:39 > 0:15:41What if you didn't do that?
0:15:41 > 0:15:45There's an argument that says lots of buyers are reluctant
0:15:45 > 0:15:48to buy a house that has reached its full potential.
0:15:48 > 0:15:52They want to stamp their mark and do some of the graft themselves.
0:15:52 > 0:15:56I'd speak to a number of local agents, but for a quick sale,
0:15:56 > 0:16:01I think it might be worth doing the basics and walking away with a swifter, easier profit
0:16:01 > 0:16:04and leaving the building work for someone else.
0:16:04 > 0:16:11# And make it easy on yourself
0:16:11 > 0:16:16# Make it easy on yourself. #
0:16:16 > 0:16:19If you kept the changes to a straightforward refurbishment,
0:16:19 > 0:16:24leaving scope for the new purchaser, it could make your renovation quicker and cheaper,
0:16:24 > 0:16:29but still leave you with profit plus potential for your buyer to make a profit too.
0:16:29 > 0:16:32But what does a local estate agent think
0:16:32 > 0:16:37are the best options for this Hampton house guided at £380,000?
0:16:37 > 0:16:44First impressions are pretty good. The overall condition is not bad.
0:16:44 > 0:16:46It could do with some improvements, but I don't think
0:16:46 > 0:16:49it's going to cost that much to bring it up to a good standard.
0:16:49 > 0:16:55My recommendations would be to do a loft conversion. It is crying out for one.
0:16:55 > 0:17:00The third bedroom is small so you would benefit
0:17:00 > 0:17:05from converting the loft to create a nice master bedroom with an en suite.
0:17:05 > 0:17:08You also have potential of adding on a side return
0:17:08 > 0:17:14to create a really nice kitchen/breakfast room which is in demand at the moment.
0:17:14 > 0:17:17So there seems to be a need for extended properties,
0:17:17 > 0:17:20but would the returns justify the financial outlay?
0:17:20 > 0:17:25What sort of resale value could an enlarged house achieve?
0:17:25 > 0:17:29If the work was done with the side return and the loft conversion,
0:17:29 > 0:17:36I would be suggesting an asking price of anywhere from £590,000 and £600,000.
0:17:36 > 0:17:41If there was no extension and it was brought up to a really good standard,
0:17:41 > 0:17:45I would suggest an asking price of around £500,000.
0:17:45 > 0:17:50By doing a straightforward refurbishment it seems there's a decent profit to be made.
0:17:50 > 0:17:55But that top price of £600,000 sounds even more attractive.
0:17:55 > 0:17:59To get that, you'd have to get planning permissions, pay building costs and cope with the hassle.
0:17:59 > 0:18:05I'm definitely for taking the easy route here. What about the rental options?
0:18:05 > 0:18:10The rental income in its current condition would be around £1,400 per calendar month.
0:18:10 > 0:18:12If you were to bring it up to a good standard
0:18:12 > 0:18:15and extend the side return and do the loft conversion,
0:18:15 > 0:18:19you could be looking at anything up to £1,800.
0:18:19 > 0:18:24A lovely neat and tidy house and a neat and tidy investment.
0:18:24 > 0:18:28I think so. Let's see who agreed at the auction.
0:18:31 > 0:18:34Lots 88. £400,000 anywhere? How much?
0:18:34 > 0:18:37OK, we'll start there. It is a good bid.
0:18:37 > 0:18:41£380,000 I've got. Anybody else?
0:18:41 > 0:18:47Thank you. 385. 390. How much? 392. OK.
0:18:47 > 0:18:53392, 393, 394, 395, 396.
0:18:53 > 0:18:57Yes, OK. New place 396. 397, 398.
0:18:57 > 0:19:02The two interested parties were really batting for this lot.
0:19:02 > 0:19:05We rejoin when the bidding reached £418,000.
0:19:05 > 0:19:09418, 419,
0:19:09 > 0:19:12£420,000.
0:19:12 > 0:19:18420, 421, 422, 422? No, OK.
0:19:18 > 0:19:21Bids for £421,000. Anybody else?
0:19:22 > 0:19:27If not, 421,000 for the first time, 421 for the second,
0:19:27 > 0:19:30421 for the third and final time. We all done?
0:19:30 > 0:19:33Sold 421. Well done.
0:19:33 > 0:19:37And those happy successful bidders who secured the lot for £421,000
0:19:37 > 0:19:40were Heather and her husband David.
0:19:40 > 0:19:44They live in Surrey where Heather works as a childminder
0:19:44 > 0:19:46and David is a retired surveyor.
0:19:46 > 0:19:50He wasn't available today, but I met Heather at the house
0:19:50 > 0:19:54to discover their plans for what is her first ever renovation project,
0:19:54 > 0:19:56though David has done some before.
0:19:56 > 0:20:00- Heather, congratulations.- Thank you. - I really do like this house.
0:20:00 > 0:20:04It's got such a welcoming feeling. How much research did you do?
0:20:04 > 0:20:07Quite a lot. We have been here quite a few times.
0:20:07 > 0:20:13We looked at it and planned it and found out what we would benefit by the schools,
0:20:13 > 0:20:15the train, the lovely green, the river.
0:20:15 > 0:20:19We thought it would be a good project for me to start on for the first time.
0:20:19 > 0:20:24Tell me a bit more about you wanting to conquer the world of property developing?
0:20:24 > 0:20:28I wanted to do something different and get involved in something I can do on my own
0:20:28 > 0:20:34and make decisions and go through it all and see what the outcome is.
0:20:34 > 0:20:38Do you feel confident doing it on your own without any help at all?
0:20:38 > 0:20:41I will probably get advice from David, but it will be my say in the end.
0:20:41 > 0:20:47We work well together anyway so it should be an exciting thing to do.
0:20:47 > 0:20:49Tell me about David.
0:20:49 > 0:20:52I've known David for 42 years and we've got a daughter, Gemma,
0:20:52 > 0:20:57we got married last year after 42 years together,
0:20:57 > 0:21:01so we had a very exciting wedding and that was it. That was last year.
0:21:01 > 0:21:07It's our first anniversary and this has all happened on our first year together as man and wife.
0:21:07 > 0:21:09# Love and marriage
0:21:09 > 0:21:12# Love and marriage
0:21:12 > 0:21:16# Go together like a horse and carriage. #
0:21:16 > 0:21:20Congratulations to Heather and David on their wedding bells
0:21:20 > 0:21:23however, I'm listening out for alarm bells.
0:21:23 > 0:21:27As a first-time developer, might Heather be tempted to over develop?
0:21:27 > 0:21:29How far are you going to take it?
0:21:29 > 0:21:33There's quite a few options, you can go out to the side return,
0:21:33 > 0:21:39you can go up into the loft, leave it as it is or knock out and try and extend out that way.
0:21:39 > 0:21:41What are you going to do?
0:21:41 > 0:21:47We're going to knock out the kitchen all the way back to the end of the shed.
0:21:47 > 0:21:51We might do this. We're not going to doing a loft extension.
0:21:51 > 0:21:55New bathroom, new toilets upstairs.
0:21:55 > 0:21:58All wood flooring all the way through.
0:21:58 > 0:22:02We're going to knock down the inner wall in there to make it a completely through lounge,
0:22:02 > 0:22:07so you can see outside, that should be quite nice.
0:22:07 > 0:22:09I thought you were going to say you were going to be knocking through here
0:22:09 > 0:22:12because you got the side return.
0:22:12 > 0:22:17My only thoughts with that would be that you might be a little close to the neighbours' wall.
0:22:17 > 0:22:22We could get permission for that, but it will take longer for planning to go through
0:22:22 > 0:22:28and we want to run this through in three months to see it to the end.
0:22:29 > 0:22:34A three-month timescale and a budget of £35,000 is the aim.
0:22:34 > 0:22:36I reckon they've made a sensible decision,
0:22:36 > 0:22:40helping the saleability factor by creating a great living space
0:22:40 > 0:22:43whilst still leaving scope for development by the next owner.
0:22:43 > 0:22:50You do have another option, have you thought about selling it on as it is?
0:22:50 > 0:22:54Not doing a thing, just turning a profit that way.
0:22:54 > 0:22:58We were approached by someone to do that right after the auction,
0:22:58 > 0:23:01but we decided that we would turn it down and do it ourselves.
0:23:01 > 0:23:05- Somebody made you a private offer after the auction?- The next day.
0:23:05 > 0:23:11- Really? Do you mind asking how much more they offered you?- 475.
0:23:11 > 0:23:16- £50,000 extra?- Yes.- £50,000 for doing nothing and you said no? Why?
0:23:16 > 0:23:22- Because you think you could make more?- Yes, maybe she was thinking the same as well.
0:23:22 > 0:23:26- You thought I'm going to hold onto this one.- Hold onto that one, yes.
0:23:26 > 0:23:28We did our paperwork, worked it out and we thought no,
0:23:28 > 0:23:32we'll go ahead and do it because we wanted to do this as a project.
0:23:32 > 0:23:37- Good for you for sticking to your guns. Congratulations. - Thank you very much, Lucy.
0:23:37 > 0:23:42So Heather turned down 50 grand to take on this project.
0:23:42 > 0:23:45I'm not sure I could have managed to do the same.
0:23:45 > 0:23:48Still, I'm sure the house will be fab when she's finished.
0:23:48 > 0:23:51You can find out how it goes later in the show.
0:23:51 > 0:23:57Coming up in Lincolnshire, this tired bungalow may be small, but it is rather confusing.
0:23:57 > 0:24:01I think it must be the kitchen because there's a sink here, but there's nothing else.
0:24:01 > 0:24:07In Hampton, Middlesex, how did Heather and David get on with their renovation?
0:24:07 > 0:24:11We're very proud of each other that we have succeeded in doing what we've done.
0:24:13 > 0:24:18In Cumbria, it seems this renovation's taught Paul the most important lesson.
0:24:18 > 0:24:21I have learnt a lot. I've learnt how much things costs for instance.
0:24:24 > 0:24:29We're back in the Cumbrian countryside in the hamlet of Fletchertown.
0:24:29 > 0:24:3421-year-old Paul, an electrician by trade, had bought this two-bedroom terrace
0:24:34 > 0:24:37with an attic for £46,000.
0:24:37 > 0:24:42He was hoping for a future in property developing.
0:24:42 > 0:24:45Is this your first house purchase per se or have you got your own home?
0:24:45 > 0:24:51No, I live at home with my father but this is an investment opportunity.
0:24:51 > 0:24:54What are you going to do to sort it out?
0:24:54 > 0:24:57I'm going to install a new kitchen, new bathroom,
0:24:57 > 0:25:02a new floor on the first floor as it's rotten and it's not safe.
0:25:02 > 0:25:07There's quite bit of work to do on the steps going up into the attic room.
0:25:07 > 0:25:09What about the budget?
0:25:09 > 0:25:11I'm hoping to come in about £14,000.
0:25:11 > 0:25:16I'm not going to scrimp on things, I want it to be nicely finished off.
0:25:16 > 0:25:19With help from his family and friends, Paul planned to refurbish
0:25:19 > 0:25:24the place in three months and would then be looking for tenants.
0:25:24 > 0:25:29It's now seven months later and back in Fletchertown,
0:25:29 > 0:25:34Paul's keen to show us the finished house that his close team have helped to transform.
0:25:44 > 0:25:51The finish is absolutely fantastic on all three floors.
0:25:56 > 0:25:59I'm glad to see the downstairs bathroom has gone
0:25:59 > 0:26:04and is now a smart utility room that matches the stylish kitchen.
0:26:06 > 0:26:11In here, we skimmed the whole place, brand-new kitchen
0:26:11 > 0:26:16and next door there was a dividing wall to what used to be the bathroom,
0:26:16 > 0:26:20ripped that out, re-plastered again and made that into a utility space,
0:26:20 > 0:26:23which I think works well.
0:26:23 > 0:26:27The old lean-to has been demolished,
0:26:27 > 0:26:31the back door and all the windows have been replaced too.
0:26:31 > 0:26:35Paul's kept a cottage feel in the living room
0:26:35 > 0:26:39with a log burner and oak beam. Very nice indeed.
0:26:40 > 0:26:44Upstairs, the floorboards needed replacing in the two bedrooms.
0:26:48 > 0:26:51But that's not the main difference up here.
0:26:51 > 0:26:54The main changes is we brought the bathroom upstairs.
0:26:54 > 0:26:57Originally, there was just two bedrooms.
0:26:57 > 0:27:02We took the largest of the bedrooms, divided into two
0:27:02 > 0:27:07and used the space really well to make one small bedroom and a decent sized bathroom.
0:27:07 > 0:27:12Paul discovered that the attic complied with regulations and could be classed as a bedroom.
0:27:12 > 0:27:16But he still relocated the door to improve access
0:27:16 > 0:27:20and moved some overhead trusses to increase the head height plus he added a radiator.
0:27:20 > 0:27:25Paul's a qualified electrician and, with help from friends in other trades,
0:27:25 > 0:27:29he's done an impressive refurbishment here.
0:27:29 > 0:27:33He paid £46,000 at the auction and had set a budget for £14,000
0:27:33 > 0:27:39He was keen to learn from the various tradesmen who were going to help out.
0:27:39 > 0:27:43I have learnt a lot, how much things cost for instance.
0:27:43 > 0:27:47Also, halfway through the project, I decided to move in myself
0:27:47 > 0:27:52which meant the finish was to a higher standard.
0:27:52 > 0:27:58I went over substantially maybe £28,000.
0:27:58 > 0:28:02That means Paul spent double his initial £14,000.
0:28:02 > 0:28:05It brings his total investment to £74,000,
0:28:05 > 0:28:10but he's about to move in and make it his new home with girlfriend Abby.
0:28:10 > 0:28:15They've taken some time to have the odd holiday and give this stylish house the personal touch.
0:28:15 > 0:28:20I've put colour change and mood lighting in the kitchen,
0:28:20 > 0:28:26plinth lights and unit lights just to give it that finishing touch.
0:28:26 > 0:28:31It's a great location and with views like this from the front bedroom,
0:28:31 > 0:28:34I can see why Paul's decided to move in and make it home.
0:28:34 > 0:28:40I just love the area, the neighbours, great views, handy for the Lake District.
0:28:40 > 0:28:44It seems the perfect house to move into.
0:28:46 > 0:28:48We invited two local estate agents
0:28:48 > 0:28:50to come and have a look at the finished result.
0:28:50 > 0:28:53What will they make of Paul's refurbishment?
0:28:53 > 0:28:56When I walked through the door today, I was pleasantly surprised
0:28:56 > 0:28:59by the work that has been done on the property.
0:28:59 > 0:29:06The quality of the fixtures and fittings is outstanding and the attention to detail is high.
0:29:06 > 0:29:08My first impressions when I walked in
0:29:08 > 0:29:11were it was quite a large, bright, airy property.
0:29:11 > 0:29:14It has got a really high spec bathroom and kitchen.
0:29:14 > 0:29:18On the saleable market, it would do very well.
0:29:18 > 0:29:21Paul's initial intention was to let the property
0:29:21 > 0:29:24and have this as his first buy-to-let investment.
0:29:24 > 0:29:26How much income could that have earned?
0:29:26 > 0:29:31I think the property would rent easily given its three bedrooms.
0:29:31 > 0:29:34I would be looking to achieve £400 per calendar month.
0:29:34 > 0:29:40I would expect to achieve £375 to £400 per calendar month.
0:29:40 > 0:29:44Those valuations would have generated a yield of over six percent.
0:29:44 > 0:29:48Originally, when I was going to rent it out, I did have a tenant lined up.
0:29:48 > 0:29:50Unfortunately, I had to let him down.
0:29:50 > 0:29:53That was what he would have been paying so I'm happy with that.
0:29:53 > 0:29:56How is the sale value of the house now looking?
0:29:56 > 0:30:00Is it worth more than the £74,000 Paul's invested?
0:30:00 > 0:30:05I would value this property at £75,000
0:30:05 > 0:30:09possibly with the quality of the fixtures and fittings, £80,000.
0:30:09 > 0:30:13I would be looking at marketing the property at about £90,000.
0:30:13 > 0:30:20A potential profit of between £1,000 and £16,000 before taxes and expenses.
0:30:20 > 0:30:23Figures Paul was expecting?
0:30:23 > 0:30:26I'd be looking for a bit more than that,
0:30:26 > 0:30:30but hopefully that's when the market picks up. We'll see how it goes.
0:30:30 > 0:30:33Paul's refurbishment has brought the best out of this house
0:30:33 > 0:30:36and it is good to know that along with his girlfriend,
0:30:36 > 0:30:39he'll be enjoying all the benefits of his hard work.
0:30:39 > 0:30:44But what about his ambitious portfolio plans? Are they on hold?
0:30:44 > 0:30:46I'm looking for another property to rent
0:30:46 > 0:30:53so I will be continuing in property, but this one's mine.
0:30:53 > 0:30:55I'm staying here.
0:30:57 > 0:31:02What are the ingredients for the perfect village life?
0:31:02 > 0:31:04Peace, but with a lively sense of community?
0:31:04 > 0:31:08Good, independent shops, even a quaint old English pub.
0:31:08 > 0:31:12If that's your idea of perfection,
0:31:12 > 0:31:17Welton in Lincolnshire could be just the place for you.
0:31:17 > 0:31:22So what am I here to see in this village that has it all?
0:31:22 > 0:31:24It's one of my favourites, a 1930s bungalow.
0:31:24 > 0:31:26They often have great scope for improvements
0:31:26 > 0:31:31and they are a great place to live more often than not. This is it.
0:31:31 > 0:31:36At a guide price of £95,000, two bedrooms. Let's take a look.
0:31:36 > 0:31:39It is not instantly attractive,
0:31:39 > 0:31:43I don't think the exterior has changed much over the past 80 years.
0:31:43 > 0:31:46A splash of paint would fix that.
0:31:46 > 0:31:51It's got off-street parking and a good sized front garden.
0:31:51 > 0:31:57So what's on offer? A fairly tight entrance.
0:31:57 > 0:32:00Let's see if it gets any better.
0:32:00 > 0:32:04Lounge over to that side, that's a reasonable size.
0:32:04 > 0:32:09Second lounge area there, then through to the rear bedroom.
0:32:09 > 0:32:15Hang on a minute! That must be the other bedroom.
0:32:15 > 0:32:16Erm...OK.
0:32:16 > 0:32:19This internal layout is getting very strange.
0:32:19 > 0:32:23This rear area here, which I think it must be the kitchen
0:32:23 > 0:32:26cos there is a sink here, but nothing else.
0:32:26 > 0:32:31There is an annexe at the back. You've got a bathroom there.
0:32:31 > 0:32:33A separate loo over there.
0:32:33 > 0:32:37Come on, what's going on with this internal layout?
0:32:37 > 0:32:41It's as if you'd want to remove all the internal walls and start again.
0:32:41 > 0:32:44It's small, but it's not perfectly formed.
0:32:44 > 0:32:46Small and badly laid out.
0:32:46 > 0:32:50It doesn't have the same ring to it, does it?
0:32:50 > 0:32:56But it is a 1930s bungalow and I don't think it has seen many changes since then.
0:32:58 > 0:33:02Plenty of work to do, but don't write it off as all doom and gloom.
0:33:02 > 0:33:06One of the wonderful things about this house is this garden. Look at it! Absolutely huge.
0:33:06 > 0:33:10Why don't they build houses with gardens like this any more?
0:33:10 > 0:33:17Because space is at a premium. You've got apple trees, a vegetable plot. It's fantastic.
0:33:17 > 0:33:21You might think it ends here, but it doesn't.
0:33:21 > 0:33:26This little orchard at the back is absolutely fantastic for a garden enthusiast
0:33:26 > 0:33:29or somebody who wants a bit of space in the country.
0:33:29 > 0:33:31It doesn't get much better than this.
0:33:31 > 0:33:37A huge garden, a small two-bedroom house with a guide price of £95,000.
0:33:37 > 0:33:43Is there a development opportunity here? A way of building another house on this huge plot?
0:33:43 > 0:33:47Well, no, there's no access for starters.
0:33:47 > 0:33:52Sometimes, you've got to hang up your developer's hat and sit back and enjoy the scenery.
0:33:52 > 0:33:55Wait! Who am I kidding? Of course there's an opportunity.
0:33:55 > 0:33:58So, listen carefully.
0:33:58 > 0:34:03Do you want to know how to treble your money on this place?
0:34:03 > 0:34:07Add about £30,000 onto your renovation budget, add a couple of bedrooms
0:34:07 > 0:34:12and an extension on the back and you've got a family home.
0:34:12 > 0:34:16The family market here is extremely good.
0:34:16 > 0:34:20People want to live in this area. Who wouldn't?
0:34:20 > 0:34:24Maybe this 1930s property can make some 21st-century profits.
0:34:24 > 0:34:29# Happy days are here again
0:34:29 > 0:34:32# The skies above are clear again. #
0:34:32 > 0:34:37I think this 1930s bungalow guided at £95,000 has great potential.
0:34:37 > 0:34:40But what does a local estate agent reckon?
0:34:40 > 0:34:45It does require quite a lot of modernisation.
0:34:45 > 0:34:47Kitchen, bathroom, re-dec throughout
0:34:47 > 0:34:50just to bring it up to modern day standards.
0:34:50 > 0:34:53Upgrading the bungalow might do for those on a limited budget,
0:34:53 > 0:34:57but could value be added here?
0:34:57 > 0:34:59A lot of properties in this area have extended
0:34:59 > 0:35:01and I think, potentially,
0:35:01 > 0:35:04going out the back or even up into the roof space would certainly
0:35:04 > 0:35:10make it a much more valuable, and probably saleable, property.
0:35:10 > 0:35:13'So, if you stick with the floor plan or add an extension,
0:35:13 > 0:35:16'what sort of resale figures could be achieved?'
0:35:16 > 0:35:18I think if you literally just refurbed
0:35:18 > 0:35:21the property as it is in square footage terms,
0:35:21 > 0:35:26you'd be looking at around about 125, maybe £130,000.
0:35:26 > 0:35:29I think if you actually did the full-on extension...
0:35:29 > 0:35:31the sky's your limit, a bit.
0:35:31 > 0:35:36It could be 200,000, it could even get up to 250,000.
0:35:36 > 0:35:38- 'And rental?' - If it was extended,
0:35:38 > 0:35:44I think you could ask something in the region of £550-£600 per calendar month.
0:35:44 > 0:35:47Well, this property really is a bit of developer's dream.
0:35:47 > 0:35:49Very desirable area.
0:35:49 > 0:35:52It does need updating, but all that space at the back means
0:35:52 > 0:35:56you can build on an extension and increase the value quite dramatically.
0:35:56 > 0:35:59Let's see who spotted it when it went under the hammer.
0:36:01 > 0:36:03Lot Number 21.
0:36:03 > 0:36:07Who would like to start me at the guide price for this property?
0:36:07 > 0:36:10Thank you, sir, straight in at £95,000.
0:36:10 > 0:36:1496. 96. At 97. 97. 98. 99.
0:36:15 > 0:36:17At 99.
0:36:17 > 0:36:24100. At 100. At 101. Fresh face, 101, 102. 102, 103, 104, 104.
0:36:26 > 0:36:28At 105, at 106...
0:36:28 > 0:36:31'The bungalow had attracted several interested parties
0:36:31 > 0:36:35'and we rejoin the auction when the bidding reached 117,000.'
0:36:37 > 0:36:41At 117, at £117,500,
0:36:41 > 0:36:45£118,000. 500, sir? 118,500.
0:36:47 > 0:36:51At £118,500, my eyes are all on you, sir, now.
0:36:51 > 0:36:55At £118,500, once.
0:36:56 > 0:37:02At £118,500, twice. The third and last time I'm asking at £118,500...
0:37:04 > 0:37:06..sold!
0:37:06 > 0:37:12'The successful bidders who got the lot for 118,500 were John and Pam.
0:37:13 > 0:37:16'John used to look after the electronics department
0:37:16 > 0:37:20'at the local technical college, while Pam was formerly a secretary.
0:37:20 > 0:37:23'Now, they are both retired and live in Welton itself,
0:37:23 > 0:37:27'and it turns out you can't get any more local than them.'
0:37:27 > 0:37:29- John, Pam, lovely to meet you both. - Nice to meet you, Martin.
0:37:29 > 0:37:32- Nice to meet you.- Congratulations! - Thank you!- Well...
0:37:32 > 0:37:36- What do you mean, "well"?- Well... Apprehension, coming in there.
0:37:36 > 0:37:37Apprehension?! Why?
0:37:37 > 0:37:41Well, it's the first time we've bought a property at auction
0:37:41 > 0:37:43and the first time we've actually...
0:37:43 > 0:37:46Well, it's the second property I've ever bought.
0:37:46 > 0:37:49- Because I bought the first one when we got married 30...- 33.
0:37:49 > 0:37:5233 years ago and this is only the second time we've
0:37:52 > 0:37:54looked at buying a property.
0:37:54 > 0:37:58- Wow. So why did you want to buy it? - Basically, a combination of reasons.
0:37:58 > 0:38:03One, the bank rate being low and we had the money the bank,
0:38:03 > 0:38:08- so it came up and it butts onto our property.- Where?- Just at the back.
0:38:08 > 0:38:10- It's at 90 degrees to our property. - Oh, right!
0:38:10 > 0:38:13- So your house is sort of over there-ish?- That's right.
0:38:13 > 0:38:16And we've used the orchard for our geese
0:38:16 > 0:38:19and sometimes we have sheep, young lambs, in it.
0:38:19 > 0:38:21It was coming up for auction, so we thought, "We'll have a go".
0:38:21 > 0:38:24- You knew the owner then, obviously?- Very much, yes.
0:38:24 > 0:38:26Old Pam lived next door, actually.
0:38:26 > 0:38:28I did, for 21 years I lived next door,
0:38:28 > 0:38:31so I've sort of grown up with this property.
0:38:31 > 0:38:35- Ah, fantastic! So, you were friends with the lady who lived here? - That's right.
0:38:35 > 0:38:39Yes, it was actually built in 1933 and it's only had two owners,
0:38:39 > 0:38:40and we're the third.
0:38:40 > 0:38:42And I've known both sets of owners,
0:38:42 > 0:38:46I used to spend quite a bit of time round here as a child.
0:38:46 > 0:38:49So was there a large element of not wanting it to go into somebody else's hands,
0:38:49 > 0:38:51- coming to the purchase?- To a degree.
0:38:51 > 0:38:56We were a bit concerned because we've just something developed on the other side of us,
0:38:56 > 0:39:00you can see the new buildings there, and somebody could have bought it,
0:39:00 > 0:39:04I suppose, knocked it down, and put two more bungalows on here.
0:39:04 > 0:39:06So, yes, an element of that.
0:39:07 > 0:39:09We're not totally sure,
0:39:09 > 0:39:12but it's a combination of all of those things, why we've done it.
0:39:12 > 0:39:15But what kind of property developing experience do you have?
0:39:16 > 0:39:21Hey? Property developing? What, what's all that? None!
0:39:21 > 0:39:24'Well, despite this being their first and possibly last foray
0:39:24 > 0:39:28'into property renovation, John and Pam have done very well here.
0:39:28 > 0:39:31'They did put in an offer pre-auction which was rejected
0:39:31 > 0:39:34'and ended up paying more than they had originally wanted.
0:39:34 > 0:39:37'But there's still money to be made if they do the right things.'
0:39:37 > 0:39:40The main idea is to put an extension on the back.
0:39:40 > 0:39:44We thought it would be nice to have a living-dining kitchen
0:39:44 > 0:39:47with double patio doors out the back looking down the garden.
0:39:47 > 0:39:53Probably an extra bedroom-cum-study, and obviously, toilets and bathroom.
0:39:53 > 0:39:56Then, the front, we're going to remove the two chimneys
0:39:56 > 0:40:01and chimney breasts in the bedrooms and then, take it from there.
0:40:01 > 0:40:04But, basically, that will be the main extent.
0:40:04 > 0:40:07It depends how much it costs and where we run out of money.
0:40:07 > 0:40:10To be fair, if we can get our money back and then only sell
0:40:10 > 0:40:15off half the garden with the bungalow, that would be the eventual idea.
0:40:15 > 0:40:17Right, so then you get to keep the bit that...
0:40:17 > 0:40:19We get to keep the bit that we've been using.
0:40:19 > 0:40:22So have you got any idea of the kind of numbers involved here?
0:40:22 > 0:40:25You know you paid for it, what about the budget, stuff like that?
0:40:25 > 0:40:28We might be slightly limited because we've no particular income now
0:40:28 > 0:40:33with not working, but a guesstimate would be about 40.
0:40:33 > 0:40:36'A 40 grand budget sounds a bit tight for the work they've planned,
0:40:36 > 0:40:40'but they're not going to rush it, giving themselves a year to do it.
0:40:40 > 0:40:43'The couple are confident of getting their money back.
0:40:43 > 0:40:45'They hope that by the time it's ready to sell,
0:40:45 > 0:40:48'property prices will have risen enough to make them
0:40:48 > 0:40:50'a healthy little profit on top of their investment.
0:40:50 > 0:40:54'I hope these geese appreciate all the effort.'
0:40:54 > 0:40:57Are you excited about taking the project on?
0:40:57 > 0:41:01It'll obviously keep the old grey cells working!
0:41:01 > 0:41:04Now we're retired, you need something, I think, so...
0:41:04 > 0:41:08It's another stage of our lives, something different to do.
0:41:08 > 0:41:10You know, you've got to have challenges, haven't you?
0:41:10 > 0:41:13To keep the, as Pam said, the grey matter going.
0:41:13 > 0:41:16That is our next challenge, I suppose, yes.
0:41:16 > 0:41:18- We're looking forward to it? - We are, yes.
0:41:18 > 0:41:21Well, congratulations, we look forward to seeing how you get on.
0:41:21 > 0:41:26- Thank you.- Thank you very much! Watch this space.- Yes.
0:41:27 > 0:41:31Well, it's one thing to buy a property to keep the old
0:41:31 > 0:41:32little grey cells active,
0:41:32 > 0:41:38but I think that Pam and John have stumbled on a fantastic investment opportunity here,
0:41:38 > 0:41:41and I don't think they quite realise it yet.
0:41:41 > 0:41:45And it all started because they wanted a little bit of land for their geese.
0:41:45 > 0:41:48How are they going to get on? Find out later in the show.
0:41:52 > 0:41:55- Doing up property always takes longer than you think.- Yes.
0:41:55 > 0:41:57There are always reasons for delays,
0:41:57 > 0:42:01so have our buyers been held up or raced ahead?
0:42:01 > 0:42:02Time to find out.
0:42:04 > 0:42:06'We head back now to Hampton in Middlesex.
0:42:06 > 0:42:10'It was here we met Heather who, along with her husband David,
0:42:10 > 0:42:14'had bought this handsome three-bedroom semi for 421,000.
0:42:15 > 0:42:18'Heather's day job is as a childminder
0:42:18 > 0:42:21'and this was going to be her first renovation development,
0:42:21 > 0:42:24'a "do up quick and sell on fast" project.
0:42:24 > 0:42:27'But with the house in such a good state,
0:42:27 > 0:42:29'there was another tempting option.'
0:42:29 > 0:42:32Have you thought about selling it on as it is?
0:42:32 > 0:42:35We were approached by someone to do that right after the auction,
0:42:35 > 0:42:39but we decided that we would turn it down and do it ourselves.
0:42:39 > 0:42:42Really? Do you mind me asking how much more they offered you?
0:42:42 > 0:42:44475, it would have been, in total.
0:42:44 > 0:42:48- £50,000 for doing nothing, and you said no?- We said no.- Why?
0:42:48 > 0:42:51- Did you think you could make more? - Because we can make more, yeah.
0:42:51 > 0:42:56'To help her get more, Heather planned to spend 35 grand to add an extension on the rear
0:42:56 > 0:43:00'plus create an open-plan through lounge, all in three months.
0:43:00 > 0:43:04'But it was five months later that we returned to find out
0:43:04 > 0:43:07'if she'd regretted not taking up that offer.
0:43:07 > 0:43:12'From the outside, the house still has that appealing character,
0:43:12 > 0:43:14'this time with freshly painted windows.
0:43:14 > 0:43:16'And inside?
0:43:18 > 0:43:21'As promised, the dividing wall has gone
0:43:21 > 0:43:24'and Heather and David have opened up the rooms to create that
0:43:24 > 0:43:27'spacious and light through lounge.
0:43:27 > 0:43:31'The effect is complemented with the warm tones of the new oak flooring.
0:43:32 > 0:43:36'And there's character here, in the shape of a new fireplace.
0:43:36 > 0:43:38'That's one big change. And the other?
0:43:40 > 0:43:45'Well, Heather has got her extension, transforming the old shed and kitchen
0:43:45 > 0:43:48'into one fabulous kitchen-dining area.
0:43:48 > 0:43:50'Spacious, with beautiful units and tiles,
0:43:50 > 0:43:54'creating a wonderful space for any family.'
0:43:54 > 0:43:57As you can see, we've created really a lovely kitchen here
0:43:57 > 0:44:04with a fridge-freezer and freezers here, washing machine and dishwasher, lovely cooker here.
0:44:04 > 0:44:08And this is where the kitchen ended, originally, was just here.
0:44:08 > 0:44:10So, it was kind of really small and tight.
0:44:10 > 0:44:14Now, we've expanded it, lovely, with the patio doors which open up
0:44:14 > 0:44:18onto the garden, ideal space for a table, if you wish to have one here.
0:44:18 > 0:44:20Everything's here that one would want in the kitchen,
0:44:20 > 0:44:25the space, the garden, lovely and fresh, and, yeah, I love it.
0:44:26 > 0:44:28'It's easy to see why.
0:44:28 > 0:44:31'Everything on the ground floor has been done to a high standard.
0:44:34 > 0:44:35'And it's the same upstairs.
0:44:35 > 0:44:38'The master bedroom and second bedroom have been renovated
0:44:38 > 0:44:41'and redecorated, with new carpets...
0:44:43 > 0:44:45'..as has the third rear bedroom.
0:44:47 > 0:44:50'The cupboard that was in the cramped corridor has been removed to
0:44:50 > 0:44:52'make it user-friendly.
0:44:52 > 0:44:56'The separate toilet and bathroom have been combined to create a larger bathroom.
0:44:56 > 0:45:00'There's even space for a shower cubicle. Perfect for a family.
0:45:02 > 0:45:04'There's lots to like about this house,
0:45:04 > 0:45:06'and Heather likes one area in particular.'
0:45:07 > 0:45:09I love this room, I love the lounge.
0:45:09 > 0:45:11I've always liked open-plan and I think it really works,
0:45:11 > 0:45:14and the windows are beautiful as well,
0:45:14 > 0:45:18and it looks out onto nice property at the other side and that's good.
0:45:18 > 0:45:22'Just as they look onto your nice-looking home as well, Heather.
0:45:22 > 0:45:24'But it's not just the front that looks good,
0:45:24 > 0:45:27'with the spruced-up garden providing a pleasant,
0:45:27 > 0:45:29'low-maintenance space to relax in.
0:45:29 > 0:45:31'But looking at this side raises the question
0:45:31 > 0:45:37'of whether Heather and David regret not extending into the side return and loft.'
0:45:37 > 0:45:40We decided not to do that, because we thought just to leave it
0:45:40 > 0:45:44the way it is and give the option to people that want to buy
0:45:44 > 0:45:46the property, they'll do that if they wish to.
0:45:46 > 0:45:50So we just felt that we could just do it the way it is and hope for the best.
0:45:51 > 0:45:56'I reckon Heather did the right thing by not overextending herself on her first project.
0:45:56 > 0:45:59'Applying for planning permission for the extension
0:45:59 > 0:46:02'and the Christmas break meant their timescale was
0:46:02 > 0:46:05'extended from three months to four.
0:46:05 > 0:46:08'But in general, the renovation was pretty trouble-free,
0:46:08 > 0:46:10'with everything going smoothly for the couple.'
0:46:10 > 0:46:13My husband and myself have been both very involved with it
0:46:13 > 0:46:17and we've worked very well together, deciding and choosing,
0:46:17 > 0:46:20and it's worked very well with our team of builders as well,
0:46:20 > 0:46:22so it's been an excellent job.
0:46:22 > 0:46:26And we're both very proud of each other, that we've succeeded
0:46:26 > 0:46:29in doing what we've done, especially with this being my first project.
0:46:29 > 0:46:32I've thoroughly enjoyed it and can't wait to do the next one.
0:46:32 > 0:46:35'In fact, it's already up for sale, but making a decent
0:46:35 > 0:46:39'profit will be down to how much the renovation costs.
0:46:39 > 0:46:42'Did they manage to do it within their 35 grand budget?'
0:46:42 > 0:46:47Well, it didn't actually, because we put the oak flooring down and throughout downstairs
0:46:47 > 0:46:51and also the extension to the kitchen and spec of the kitchen units, etc,
0:46:51 > 0:46:54so we spent 45 in the end, in total.
0:46:56 > 0:46:59'With their purchase price of 421,000,
0:46:59 > 0:47:04'their total spent on the property adds up to 466,000.
0:47:04 > 0:47:07'So time now to find out what two local estate agents
0:47:07 > 0:47:10'think of this first-time renovation.
0:47:10 > 0:47:13'First up, the agent who saw it before.'
0:47:13 > 0:47:17Coming back today, it's absolutely fantastic, it's really lovely,
0:47:17 > 0:47:18lovely family home.
0:47:18 > 0:47:20They've done a fantastic job to it.
0:47:21 > 0:47:23The property is a very nice property indeed.
0:47:23 > 0:47:27I like the kitchen and the extended part of the back of the kitchen.
0:47:27 > 0:47:30There's a nice kitchen-dining area now, it's a nice, light, airy
0:47:30 > 0:47:34and bright room, it also opens up onto the back garden, which is
0:47:34 > 0:47:35also paved, which looks very nice.
0:47:37 > 0:47:40I think the standard of work has been done to a very good level.
0:47:40 > 0:47:44I think it is what a Hampton buyer would look for.
0:47:44 > 0:47:46'So the estate agents reckon the house is just
0:47:46 > 0:47:48'right for the local property market.
0:47:48 > 0:47:53'But could it sell for more than Heather and David's 466,000 investment?'
0:47:53 > 0:47:57I think in the current market conditions I would expect to achieve
0:47:57 > 0:47:59somewhere in the region of £600,000.
0:47:59 > 0:48:03I'd expect this property to achieve around £590,000.
0:48:03 > 0:48:07'Well, those valuations could see Heather achieve an incredible
0:48:07 > 0:48:14'potential profit of £124,000-£134,000, minus the usual taxes and expenses.'
0:48:14 > 0:48:17They're very good and that's probably what we expected anyway,
0:48:17 > 0:48:19but, yeah, really, really pleased at that.
0:48:19 > 0:48:22'But if Heather decided to let the property,
0:48:22 > 0:48:25'the estate agents estimate a possible return of up to
0:48:25 > 0:48:30'1,600 per calendar month, a yearly yield of just over four percent.
0:48:30 > 0:48:33'Do these sort of figures appeal?'
0:48:33 > 0:48:34No. I don't think so.
0:48:34 > 0:48:37I mean, you never know, if the worst comes to the worst
0:48:37 > 0:48:40and we couldn't sell for a long time,
0:48:40 > 0:48:43then it is another option to do so, but I should think the house
0:48:43 > 0:48:47will sell really quickly and we're going to sell it.
0:48:48 > 0:48:52'With those possible returns and the success of the project,
0:48:52 > 0:48:55'it looks like Heather could be a natural-born renovator.
0:48:55 > 0:48:58'She spotted a good property in a desirable area
0:48:58 > 0:49:01'and didn't get carried away with over-developing it.
0:49:01 > 0:49:05'More importantly, she and David had a good time transforming it.
0:49:05 > 0:49:08'Does that mean another renovation could be on the cards soon?'
0:49:09 > 0:49:12We've enjoyed it tremendously and, yes, we will, indeed,
0:49:12 > 0:49:14be doing this again. Very soon.
0:49:17 > 0:49:19'When it comes to buying property,
0:49:19 > 0:49:22'it's always important to know the area and do your research,
0:49:22 > 0:49:25'and when it came to this 1930s bungalow
0:49:25 > 0:49:29'in Welton, Lincolnshire, which the new owners, retired couple John and Pam,
0:49:29 > 0:49:34'paid £118,500 for, all the information they needed
0:49:34 > 0:49:37'was on their doorstep, or rather at the bottom of their garden,
0:49:37 > 0:49:40'because the garden of their current home is connected to the
0:49:40 > 0:49:43'rear of this bungalow's huge garden.
0:49:43 > 0:49:47'This was only the second house they'd bought in their 33 years together.
0:49:47 > 0:49:50'They weren't so much motivated by developing the land
0:49:50 > 0:49:53'and making money, they saw it more as a way of
0:49:53 > 0:49:57'keeping their grey matter ticking over and maintaining their standard of living.'
0:49:57 > 0:49:59So why did you want to buy it?
0:49:59 > 0:50:03We've used the orchard for our geese and sometimes we have sheep,
0:50:03 > 0:50:07young lambs, in it. And it coming up for auction, so we thought,
0:50:07 > 0:50:09"Well, we'll have a go."
0:50:09 > 0:50:12'Spreading their wings into full-time property development was not
0:50:12 > 0:50:15'the plan, but they wanted to renovate and extend the bungalow
0:50:15 > 0:50:19'and sell it on while retaining the orchard for their animals.
0:50:19 > 0:50:23'They'd set a realistic £40,000 budget and a relaxed 12-month timescale.
0:50:23 > 0:50:26'I had high hopes that with that extension at the back,
0:50:26 > 0:50:30'this goose was definitely going to lay a golden egg.
0:50:30 > 0:50:33'However, it was two years and eight months later
0:50:33 > 0:50:37'when we returned to see if the couple's plan had finally hatched.
0:50:38 > 0:50:42'Outside, the lovely, sparkling new exterior has really
0:50:42 > 0:50:45'lifted that dowdy old frontage.
0:50:45 > 0:50:47'But can the same be said for the back?
0:50:49 > 0:50:52'Well, as promised, a great-looking extension has been added,
0:50:52 > 0:50:56'with huge patio doors letting lots of light into this spacious
0:50:56 > 0:51:01'kitchen area, with a vaulted ceiling and Shaker-style units.
0:51:01 > 0:51:04'But best of all with amazing views of that huge garden.
0:51:06 > 0:51:10'But this extension isn't just about cooking and admiring the scenery.
0:51:10 > 0:51:14'Tucked behind the kitchen are a utility room and new bedroom, with
0:51:14 > 0:51:19'en suite facilities, though a shower cubicle still needs to be added.
0:51:19 > 0:51:22'Overall, it looks like the renovation's nearing completion,
0:51:22 > 0:51:25'and for Pam, it's not a moment too soon.'
0:51:25 > 0:51:29We're really pleased, I think, that it's beginning to come to an end
0:51:29 > 0:51:31because it has started to drag on a little bit.
0:51:33 > 0:51:35We've enjoyed doing it,
0:51:35 > 0:51:40but now is about the time that I think it needs to come to an end.
0:51:40 > 0:51:42'But we haven't come to the end of our tour yet.
0:51:42 > 0:51:45'Back in the old part of the bungalow, the original hall,
0:51:45 > 0:51:49'which ran down the centre, still exists, but is now refurbished.
0:51:51 > 0:51:55'And the original living room and two bedrooms have been gutted,
0:51:55 > 0:51:58'rewired, replastered, and redecorated.
0:52:00 > 0:52:03'And the two bedrooms have had their chimney breasts removed,
0:52:03 > 0:52:05'creating more space.
0:52:07 > 0:52:10'And the old kitchen and bathroom?
0:52:10 > 0:52:14'Well, the wall has come down, which has created a new family bathroom.
0:52:15 > 0:52:19'It's now a good-looking, family property, but it took John and Pam
0:52:19 > 0:52:22'longer than they anticipated to reach this stage,
0:52:22 > 0:52:25'with ten months alone dedicated to getting planning permission
0:52:25 > 0:52:28'and building regulations for the extension.
0:52:28 > 0:52:31'But it wasn't just the paperwork that held them up.'
0:52:31 > 0:52:35When we were taking the conservatory down,
0:52:35 > 0:52:38we saw the manhole cover we knew was there, but when we looked in,
0:52:38 > 0:52:43it was eight feet deep, not just a shallow draining.
0:52:43 > 0:52:45It wasn't till we really pumped it out
0:52:45 > 0:52:49and realised it was the soft water off the roofs was collecting,
0:52:49 > 0:52:54and we had to drain that out, dig it all out,
0:52:54 > 0:52:56and, obviously, fill it all in.
0:52:57 > 0:53:00'Professional contractors sorted out that particular problem
0:53:00 > 0:53:03'and skilled tradesmen were called in for the electrical work,
0:53:03 > 0:53:06'bricklaying and plastering.
0:53:06 > 0:53:10'But being a retired couple with budget constraints meant that
0:53:10 > 0:53:12'John, after learning some skills on the internet,
0:53:12 > 0:53:15'decided to get stuck in himself.'
0:53:15 > 0:53:19The only thing I'd built before this, really, was pigsties,
0:53:19 > 0:53:21when I used to keep pigs.
0:53:22 > 0:53:26- Hopefully, this hasn't turned out to be a pigsty.- It certainly hasn't, no.
0:53:27 > 0:53:29'I agree with Pam, there.
0:53:29 > 0:53:32'But let's not forget, the reason for this venture was to acquire
0:53:32 > 0:53:35'that massive garden for their beloved geese, goats,
0:53:35 > 0:53:39'and sheep, so is that now part of their property?'
0:53:39 > 0:53:42Basically, we'll put a fence part of the way down the garden
0:53:42 > 0:53:45and when we sell, we'll say, "Well, the garden ends here,
0:53:45 > 0:53:47"but if you want a little bit more..."
0:53:47 > 0:53:52A little bit by negotiation, as to how much garden the new owner would want.
0:53:52 > 0:53:55'Not that selling the property is a foregone conclusion.
0:53:55 > 0:53:59'They may let the bungalow out, or may even move in themselves
0:53:59 > 0:54:01'when the work is complete.
0:54:01 > 0:54:04'Apart from the finishing touches, they plan to build a new garage
0:54:04 > 0:54:08'to match the new extension. That will add to their budget.
0:54:08 > 0:54:11'So how did the original £40,000 estimate hold-up?'
0:54:13 > 0:54:16Overall, by the time we've finished, once we've done
0:54:16 > 0:54:22the showers and the fireplace and everything, we certainly won't have gone over 53.
0:54:24 > 0:54:28- How much?- 53,000. - I didn't know it was that much!
0:54:30 > 0:54:36'Well, add that to their purchase price of £118,500,
0:54:36 > 0:54:40'and John and Pam have spent £171,500 here.
0:54:40 > 0:54:42'Time for two local estate agents to tell us
0:54:42 > 0:54:46'what they think of this new, improved and enlarged bungalow.
0:54:46 > 0:54:49'First, the one who saw it before the renovation.'
0:54:50 > 0:54:53I think my overall impression of this full refurbishment
0:54:53 > 0:54:55and extension is, "Wow."
0:54:55 > 0:55:00I think the kitchen is a stunning piece and the fixtures and fittings
0:55:00 > 0:55:03are excellent, and to have squeezed
0:55:03 > 0:55:06an en suite into the master was a stroke of genius.
0:55:06 > 0:55:09The property's been renovated to a high standard throughout,
0:55:09 > 0:55:12the size and the standard of the kitchen will prove to be a real
0:55:12 > 0:55:15selling point for this property, as well as the en suite master bedroom.
0:55:17 > 0:55:22'So, could the couple make any profit from their £171,500 investment?
0:55:22 > 0:55:24'First, on resale.'
0:55:24 > 0:55:27In my opinion, in current market conditions,
0:55:27 > 0:55:31the property would be valued between £215,000-£225,000.
0:55:31 > 0:55:35I would value this property at £215,000.
0:55:35 > 0:55:40'Those valuations mean they could realise a possible pre-tax
0:55:40 > 0:55:44'profit of between £43,500 and £53,500.'
0:55:45 > 0:55:48Not bad, I suppose, in the present climate, is it?
0:55:48 > 0:55:52Yeah, I was hoping, 225 was the one I was hoping for,
0:55:52 > 0:55:55but that's before the market started to come down.
0:55:55 > 0:55:58So it's in the region we thought it would be.
0:55:58 > 0:56:00'If they do decide to let the extended bungalow,
0:56:00 > 0:56:04'then the estate agents reckon they could achieve a rental
0:56:04 > 0:56:08return of £650-£675 per calendar month.
0:56:08 > 0:56:11'The upper valuation would mean
0:56:11 > 0:56:14'a yearly yield of just under five percent.'
0:56:14 > 0:56:16Slightly lower than I thought it would be, actually,
0:56:16 > 0:56:19the rental value. But not too bad.
0:56:20 > 0:56:25'Those valuations don't appear to have ruffled Pam and John's feathers.
0:56:25 > 0:56:28'In fact, I think, given that they were winging their first
0:56:28 > 0:56:31'property development project, they've done well to make a profit
0:56:31 > 0:56:34'and still get what they wanted - that orchard.
0:56:34 > 0:56:38'Plus, of course, they wanted to keep the grey matter working. So, did they?'
0:56:39 > 0:56:42It has, yes, it's certainly been an interesting project.
0:56:42 > 0:56:46Bit of a nightmare at times, various things have cropped up,
0:56:46 > 0:56:51but we've overcome everything and it certainly turned out pretty well.
0:56:54 > 0:56:57Well, we'll have more tales of thrills
0:56:57 > 0:57:00and spills from the auction room for you next time.
0:57:00 > 0:57:03- And we look forward to seeing you then. Goodbye.- Goodbye.
0:57:04 > 0:57:08Subtitles by Red Bee Media Ltd