0:00:02 > 0:00:08- Hello. Property has always been seen as a pretty safe place to put your money.- That's not always the case.
0:00:08 > 0:00:13It depends where you are, whether it's a long-term investment or for a quick return.
0:00:13 > 0:00:21However, there is one way to stack the odds in your favour and that's to buy your home under the hammer.
0:00:46 > 0:00:52Whether it's an investment or somewhere to live in, you still need a good deal.
0:00:52 > 0:00:57So the big question is did the buyers on today's show achieve that?
0:00:57 > 0:01:00Here's what they bought.
0:01:01 > 0:01:06In Chiswick, this retail unit with flats above it is a sight to behold.
0:01:06 > 0:01:10You always hear of a sunny aspect, but look at this room!
0:01:11 > 0:01:16I'm ready to make a booking at this holiday cottage in Cornwall.
0:01:16 > 0:01:20I'm already sold on this place before I've seen inside.
0:01:21 > 0:01:26And the second bedroom in this mid-terrace in Northumbria may be too cosy.
0:01:26 > 0:01:31There's a single bed - fine. And a boiler!
0:01:32 > 0:01:37All these properties have been sold at auction. We'll find out who bought them and what they paid
0:01:37 > 0:01:40when they went under the hammer.
0:01:43 > 0:01:47Why do people want to live in Chiswick, West London?
0:01:47 > 0:01:53Well, the high street is teeming with great shops, it maintains a villagey feel,
0:01:53 > 0:01:59even though we're minutes away from the train and Tube AND Colin Firth lives here.
0:01:59 > 0:02:04Reason enough to buy a property in this leafy capital? I'd say so.
0:02:05 > 0:02:12Now I can't promise you'll be rubbing shoulders with A-listers, but I can guarantee you'll enjoy it.
0:02:12 > 0:02:16It's one of the hottest areas around with great transport links to the city,
0:02:16 > 0:02:21but why would you want to escape all of this?
0:02:23 > 0:02:29Now it's not all good news, I'm afraid, because property isn't cheap in Chiswick.
0:02:29 > 0:02:34The average terraced house costs around £760,000.
0:02:34 > 0:02:39And semi-detached properties are £1 million plus.
0:02:39 > 0:02:45So what does an auction lot guided at £675,000 get you?
0:02:45 > 0:02:47A tenanted commercial unit.
0:02:47 > 0:02:50And two one-bedroom flats.
0:02:52 > 0:02:56The ground-floor shop and basement are occupied by a hairdresser's.
0:02:56 > 0:02:59# We will cut your hair... #
0:03:00 > 0:03:05It's been let on a 12-year lease, which expires in just two years.
0:03:05 > 0:03:09Sounds like a cut and blow-dried case to me!
0:03:10 > 0:03:17Now when it comes to flats, I'm a bit of a fusspot and I do like a nice communal area,
0:03:17 > 0:03:24but look at this. The carpet's in good condition, loads of space, a really lovely post and spindles,
0:03:24 > 0:03:29setting the tone of the property. So far, so good. Onwards and upwards!
0:03:30 > 0:03:35Up on the first floor, things continue to look positive.
0:03:35 > 0:03:41The first-floor flat has a bright living room/kitchen which is a pretty good size.
0:03:41 > 0:03:45There's a shower room, which is a bit on the compact side,
0:03:45 > 0:03:47but the bedroom is large and...
0:03:47 > 0:03:49# Sunny... #
0:03:51 > 0:03:57In agent speak, you always hear of a sunny aspect, but look at this room.
0:03:57 > 0:04:01You've got one, two, three really big windows,
0:04:01 > 0:04:08all with wonderful views over the park. And it's really, really sunny. The floors are good.
0:04:08 > 0:04:12The walls are good. You could rent this out straight away.
0:04:14 > 0:04:18This flat is in excellent condition and it doesn't stop there.
0:04:18 > 0:04:21Join me outside for more good news.
0:04:22 > 0:04:27Outside is this fab roof terrace. I love it!
0:04:27 > 0:04:32This property had a bit of history as far as planning applications are concerned.
0:04:32 > 0:04:36I've been doing a bit of digging and I've found out that in 2002
0:04:36 > 0:04:40permission was refused to convert the shop into a studio apartment.
0:04:40 > 0:04:46The council thought losing a business premises would be detrimental to the area,
0:04:46 > 0:04:52but more interestingly planning permission was granted for a two-storey extension there.
0:04:52 > 0:04:58Now the permission lapsed three years ago, but that's not to say you couldn't apply again
0:04:58 > 0:05:01to really increase your square footage right there.
0:05:03 > 0:05:08A two-storey extension could work wonders for the top-floor flat,
0:05:08 > 0:05:12which at the moment doesn't feel as bright and airy as the first floor.
0:05:12 > 0:05:17The kitchen/living room is a decent size,
0:05:17 > 0:05:23as is the bedroom, but a little more space wouldn't go amiss. It's all looking pretty positive here.
0:05:23 > 0:05:25Or is it?
0:05:26 > 0:05:31I hate to be the bearer of bad news, especially when it was all going so well,
0:05:31 > 0:05:35but I'm afraid this auction lot does have a murky secret.
0:05:35 > 0:05:38There's a flying freehold here.
0:05:38 > 0:05:42The freehold flats are partly situated over the adjacent shop
0:05:42 > 0:05:48and that shop doesn't come with the lot, I'm afraid. So the flats are in a state of legal limbo
0:05:48 > 0:05:52and it can cause difficulties when trying to secure a mortgage.
0:05:52 > 0:05:57At worst, a home lender will decide they're not prepared to lend at all.
0:05:57 > 0:06:04And you know what that means - yes, the new owner could have to dig deep and buy this for cash.
0:06:04 > 0:06:11And with a guide price of £675,000, that's no pocket change.
0:06:11 > 0:06:16What does a local property expert make of this auction lot,
0:06:16 > 0:06:22- comprising the downstairs shop and two one-bedroom flats? - 'Great. The location's fabulous.'
0:06:22 > 0:06:29That's what makes them. Having two good-size one beds in a central location is fabulous.
0:06:29 > 0:06:36Assuming the layout remains the same for now, what could the two one-bed flats rent out for
0:06:36 > 0:06:39once renovated?
0:06:39 > 0:06:42I would rent them for £1,400 each per calendar month.
0:06:42 > 0:06:49So combined with the rent from the downstairs commercial unit, which is just under £14,000 a year,
0:06:49 > 0:06:56this property stands to make someone a pretty penny in rent. But what about the resale market,
0:06:56 > 0:06:59again without adding an extension?
0:07:00 > 0:07:03I would sell the top-floor flat
0:07:03 > 0:07:06for £275,000.
0:07:06 > 0:07:09What about the first-floor flat?
0:07:09 > 0:07:14The one-bed flat with the roof terrace, I'd sell for £300,000.
0:07:16 > 0:07:22I think this is an incredible auction lot. A commercial unit with a longstanding tenant
0:07:22 > 0:07:26and two good-sized one-bed flats in a desirable location.
0:07:26 > 0:07:30You could rent these out as they stand or renovate them for sale.
0:07:30 > 0:07:34Whatever the choice, there is definitely money to be made here.
0:07:34 > 0:07:40The only downside - that flying freehold. It could cause some problems with the lender.
0:07:40 > 0:07:44Let's see who is up for taking this on as we go to auction.
0:07:47 > 0:07:51It's a corner building. You've got a retail unit,
0:07:51 > 0:07:57an upper part arranged as two flats. Who would like to kick off on this?
0:07:57 > 0:08:00Start at six. 600. Phone bidder.
0:08:00 > 0:08:05600,000. 605 with you. 610 on the phone.
0:08:06 > 0:08:08615.
0:08:09 > 0:08:10620.
0:08:11 > 0:08:14625. 630 on the phone.
0:08:14 > 0:08:16635.
0:08:18 > 0:08:21640 on the phone.
0:08:21 > 0:08:24650. 655.
0:08:25 > 0:08:28660 on the phone.
0:08:29 > 0:08:32Sorry? 670.
0:08:32 > 0:08:34675.
0:08:34 > 0:08:36680.
0:08:37 > 0:08:39690.
0:08:39 > 0:08:41695?
0:08:41 > 0:08:43695.
0:08:43 > 0:08:45700?
0:08:46 > 0:08:49At 695. Against the phone. First time.
0:08:49 > 0:08:54Second time. Third and last time. Have you all done?
0:08:55 > 0:08:58Sold. 695 to the lady.
0:08:58 > 0:09:04That successful bid of £695,000 was placed by Yvonne.
0:09:04 > 0:09:09She's a jewellery maker and is not originally from these shores.
0:09:09 > 0:09:13Yvonne is Danish, but has lived in the UK for 20 years.
0:09:13 > 0:09:18I went to meet her at the property and hear all about her plans for the place.
0:09:18 > 0:09:21- Yvonne, congratulations.- Thank you!
0:09:21 > 0:09:28I love Chiswick. I always have. Why did you feel you wanted to buy a property here?
0:09:28 > 0:09:34I live here and know the area really well. As an investment, I thought it was a very good location.
0:09:34 > 0:09:40- How did you get to hear about it? - A friend of mine is also looking to buy something.
0:09:40 > 0:09:46We exchange opinions and things. "Have you seen that?" She said, "Have you seen that property?"
0:09:46 > 0:09:50I wanted to have a shop as well, so I thought, "Very interesting."
0:09:50 > 0:09:56I then looked it up and realised I'm definitely interested. That day was viewing.
0:09:56 > 0:10:01Open house viewing. I looked at it and two days later was the auction.
0:10:01 > 0:10:05In two days I had to raise the funds and everything. It was a real...
0:10:05 > 0:10:08I knew I wanted it. I was dead keen.
0:10:08 > 0:10:14She must have been dead keen to arrange everything within two days!
0:10:14 > 0:10:18With a £695,000 price tag, this purchase was a significant one,
0:10:18 > 0:10:21so how did she manage it?
0:10:21 > 0:10:26Well, I'm an ex-banker. Raising funds is one of my specialities.
0:10:26 > 0:10:33I love doing that and I know a lot of people, having done many properties before or some properties before,
0:10:33 > 0:10:37helped friends. I know how to raise funds.
0:10:37 > 0:10:43I had to phone more than normal because it is quite hard to get mortgages, but from phoning
0:10:43 > 0:10:46and talking my good talk, I managed.
0:10:46 > 0:10:50# Money talks Dirty cash, I want you
0:10:50 > 0:10:53# Dirty cash, I need you... #
0:10:53 > 0:10:57Yvonne's banking knowledge has obviously helped this whole process along.
0:10:57 > 0:11:02Securing finance in these tricky economic times is no easy task,
0:11:02 > 0:11:07but I get the feeling she's a lady who gets what she wants.
0:11:07 > 0:11:11She also gets top marks for asking all the right questions.
0:11:11 > 0:11:16During the process of buying it, I found out it's only legally one flat.
0:11:16 > 0:11:22It's not difficult to get turned into two flats. However, I have found out since then
0:11:22 > 0:11:28that it has been two flats for more than four years so you legally have rights to have it as two flats.
0:11:28 > 0:11:33I phoned the electricity company who told me the meter was installed in 2006.
0:11:33 > 0:11:39They have sent me confirmation that it's been two flats for more than four years.
0:11:39 > 0:11:41- Bingo!- Bingo.
0:11:43 > 0:11:47Sounds like Yvonne has lucked out on the legalities there.
0:11:47 > 0:11:54She's also been looking into the flying freehold and thinks she's found a solution to make it easier
0:11:54 > 0:12:00to sell the flats in the future. And she hopes to use the planning permission for the extension.
0:12:05 > 0:12:10I'm going to extend out to the roof terrace, half of that,
0:12:10 > 0:12:14which is the premises I own below.
0:12:14 > 0:12:20And then the rest, the flying freehold, will be a roof terrace. I've got the airspace.
0:12:20 > 0:12:22It allows me to use it as a terrace.
0:12:22 > 0:12:28- It's not a given, is it, that you'll get the permission. - It's not a given at all.
0:12:28 > 0:12:31I said, "Does that mean I can have it?" No.
0:12:31 > 0:12:36- Tell me about your budget. What's the money you've got?- Well,
0:12:36 > 0:12:42I'd like to be able to do both for 100. However, I'm going to do high specs and I want it to feel...
0:12:42 > 0:12:47I want to kind of put a Danish environment into it
0:12:47 > 0:12:54and that will cost me quite a lot, so it might go up to 150. So between 100 and 150.
0:12:54 > 0:12:57# The very, very, very best
0:12:57 > 0:13:01# I want the best The very, very, very best... #
0:13:01 > 0:13:07A possible £150,000 spend on top of the almost 700 grand Yvonne paid at auction
0:13:07 > 0:13:11would add up to a sizeable investment here,
0:13:11 > 0:13:17nearly £850,000. But larger flats should mean higher returns.
0:13:20 > 0:13:26- So how much time have you got to do the work here? - I'm planning as soon as possible.
0:13:26 > 0:13:30I hope in two months I'll have scaffolding, skip, things pulled out.
0:13:30 > 0:13:37- I can't wait to see what you do. - Nor can I!- Congratulations and good luck.- Nice to meet you.
0:13:37 > 0:13:43Jewellery designer Yvonne has found a real gem here, but what will she end up doing to the flats?
0:13:43 > 0:13:49And, more importantly, will that flying freehold cause any problems further down the line?
0:13:49 > 0:13:53You can find out what happens later on in the show.
0:13:57 > 0:14:03# Coasting along The sun coming down
0:14:06 > 0:14:09# Easy on me... #
0:14:12 > 0:14:16How fantastic is this? I'm in Portmellon in Cornwall.
0:14:16 > 0:14:21Ten minutes' walk from Mevagissey, six miles from St Austell, it is idyllic.
0:14:21 > 0:14:27It's got a gorgeous sandy beach, but while you wait for the tide to go out,
0:14:27 > 0:14:30you've also got a pub.
0:14:31 > 0:14:35Fresh sea air and an enticing pub. Perfect!
0:14:35 > 0:14:41However, if it's groceries you require, you need to head for Mevagissey, about a mile away.
0:14:41 > 0:14:47But if it's a sensational seaside property you're after, look no further.
0:14:47 > 0:14:52So how much for a three-bedroomed apartment in this stunning place?
0:14:52 > 0:14:55£225,000?
0:14:55 > 0:14:59Well, sounds like a lot, but it's worth it for the view.
0:15:01 > 0:15:07There really is something magical about that view and it's one people will pay a premium for.
0:15:09 > 0:15:14Perched perfectly above, it is the property I'm here to see.
0:15:18 > 0:15:22I'm already sold on this place before I've seen inside!
0:15:22 > 0:15:28I mean, gosh. Love the elevated position. You're on top of this fairly big building
0:15:28 > 0:15:32and that's exactly where you want to be for these incredible views.
0:15:32 > 0:15:37Into the property itself and straight away you can see it's a working holiday let.
0:15:37 > 0:15:45There's DVDs, there's books, games. It's laid out to provide a wonderful summer holiday experience.
0:15:45 > 0:15:51Main room here. I like the beams. A fire there could do with being opened up.
0:15:51 > 0:15:59A big room, views out the windows. It's be nice to have a view at the end, but it's a bit too thick.
0:15:59 > 0:16:01You come into here, your kitchen.
0:16:01 > 0:16:08It's all a little bit tired, but your impression is created the moment you walk up the steps.
0:16:08 > 0:16:12It'll have to be pretty bad to put somebody off. It's not bad at all.
0:16:12 > 0:16:19Yes, it could do with a bit of refurbishment, but it's all nice to have and not essential.
0:16:19 > 0:16:24Some people would feel the need to rip everything out and start again,
0:16:24 > 0:16:30while others could live quite happily with this for the foreseeable future.
0:16:30 > 0:16:36Out the back is a long hallway. Off that is the master bathroom, which is perfectly serviceable,
0:16:36 > 0:16:38and the three bedrooms.
0:16:38 > 0:16:41One has bunk beds and a lovely beam.
0:16:41 > 0:16:46There's one twin room and the master at the end of the corridor,
0:16:46 > 0:16:49plus an extra loo and shower.
0:16:49 > 0:16:54A little decoration throughout could be a good idea, but not essential.
0:16:54 > 0:16:59Outside, the apartment enjoys a well-maintained, pretty garden and my favourite bit,
0:16:59 > 0:17:06this charming sun deck, which on a brighter day would be ideal to admire those views.
0:17:08 > 0:17:14Charming though a lot of these Cornish villages are, one of the big downsides is often parking.
0:17:14 > 0:17:18It's a complete nightmare. However, the good news for this apartment is
0:17:18 > 0:17:26that you've got two parking spaces. That's great if you're thinking of running this as a holiday let.
0:17:28 > 0:17:33Talking of holiday lets, this apartment, guided at £225,000, also has bookings
0:17:33 > 0:17:38and doesn't become vacant for another three months.
0:17:38 > 0:17:42So while that means you can't get immediate access to do any work,
0:17:42 > 0:17:47it also means an income straight away, so it's already making money.
0:17:47 > 0:17:51Is it a case of, "If it ain't broke, don't fix it"?
0:17:52 > 0:17:57We asked a local estate agent for her recommendations.
0:17:57 > 0:18:02This apartment needs new kitchen units which are modern and bespoke.
0:18:02 > 0:18:06It needs a new white suite in the bathroom,
0:18:06 > 0:18:12neutral colours throughout, so the natural light pouring in will lighten it even more.
0:18:12 > 0:18:17I do think that, although old-fashioned, some of the fittings are charming,
0:18:17 > 0:18:23but the property could benefit from anything that makes it lighter and brighter.
0:18:23 > 0:18:29If work was done, how does she think it would fare if sold?
0:18:29 > 0:18:35When this apartment is refurbished, we would look to achieve around £285,000.
0:18:35 > 0:18:38What about renting it out long-term?
0:18:38 > 0:18:44For rental value, this apartment would achieve about £1,000 per calendar month.
0:18:44 > 0:18:50But if it were kept as a holiday let, how much could the new owners charge per week
0:18:50 > 0:18:53at the height of the season?
0:18:53 > 0:18:59For holiday let with this apartment, we would look to achieve around £1,000-£1,200 per week.
0:19:02 > 0:19:07Well, I see literally hundreds of properties filing this show
0:19:07 > 0:19:12and it's not often that I'm jealous of the buyers, but in this case I most certainly am.
0:19:12 > 0:19:16Whoever bought this got themselves an absolute corking property.
0:19:16 > 0:19:21It's a business if you want it to be, it's an escape, it's a dream come true.
0:19:21 > 0:19:25Let's see who the lucky person was when it went under the hammer.
0:19:25 > 0:19:31Sadly, I didn't have the pleasure of seeing this, but if that's the view,
0:19:31 > 0:19:37it looks like a fabulous position. £225,000 is the guide price. Like to call me out a bid? Someone brave?
0:19:37 > 0:19:41- 225.- 225 off the phone is a great place to start. I'll take 225.
0:19:41 > 0:19:44Any advance on 225?
0:19:44 > 0:19:49230 if I can? No? I've got 225 standing here on the column.
0:19:49 > 0:19:54Funny place to stop. Opening bid on the phone at 225.
0:19:54 > 0:19:56There's no advance on 225?
0:19:56 > 0:19:59225, then. First time.
0:19:59 > 0:20:01Second. Third.
0:20:01 > 0:20:05It's 225 on the phone. Are you sure you're all done? Thank you.
0:20:05 > 0:20:10With just one bid, bang on that guide price of £225,000,
0:20:10 > 0:20:14the successful bidder at the other end of the phone was Kate.
0:20:14 > 0:20:18She and her husband Trevor live in a beautiful part of the country,
0:20:18 > 0:20:21Cheltenham, on the edge of the Cotswolds.
0:20:21 > 0:20:27I met them at their new coastal retreat to hear what brought them to Cornwall.
0:20:27 > 0:20:33# If I could escape And recreate a place as my own world... #
0:20:36 > 0:20:42- Kate, Trevor, great to meet you both. Congratulations.- Thank you. - Thank you very much.
0:20:42 > 0:20:47- What a great place.- You think so? - I'm very jealous! It's lovely. Tell me why you wanted to buy it.
0:20:47 > 0:20:53I think the key reason was that we had a property we managed to sell in Cheltenham.
0:20:53 > 0:20:58And we have some other friends that live not too far away
0:20:58 > 0:21:04and we just love being in Cornwall, by the sea. So maybe we could swap these two around
0:21:04 > 0:21:10and get the benefit of a wonderful Cotswold home and a lovely Cornish pad by the sea.
0:21:10 > 0:21:15- Wow. So this is going to be your place?- Not entirely. Holiday lets.
0:21:15 > 0:21:20- Right.- And we'll use it out of season. And I'm an artist, so I can paint here.
0:21:20 > 0:21:27- My word. What kind of painting? - Large canvases and lots of pictures of Mevagissey, this area.- My word.
0:21:27 > 0:21:33- So you'll decorate it with your canvases?- Definitely. It'll be painted white, very simple,
0:21:33 > 0:21:37get the lighting right and then I can use it as a showcase as well.
0:21:38 > 0:21:45This is an ideal spot to inspire Kate and hanging her pictures here is a savvy bit of marketing.
0:21:45 > 0:21:50And she's not the only one with an unusual occupation.
0:21:50 > 0:21:56- I work for a small airline, specialising in vintage aircraft. - You fly vintage aircraft? Like what?
0:21:56 > 0:22:02Chipmunks, Austers, I fly all the single-engine aircraft maybe you've never heard of
0:22:02 > 0:22:06from times of yore, which are great fun, around the country,
0:22:06 > 0:22:12and we have the largest collection of ex-military jets in Europe, probably the world,
0:22:12 > 0:22:18- that we do air displays with.- What's it like flying these?- Fantastic. Not a bigger thrill in the world.
0:22:18 > 0:22:21Apart from buying this property!
0:22:21 > 0:22:27- So it's all...- All shaking, juddering, by the seat of your pants.
0:22:27 > 0:22:33- Do you have the flying hat and goggles?- We flew to the Scilly Isles last year in his little Auster.
0:22:33 > 0:22:38- Oh, wow.- It was so exciting, he proposed to me on the way back.
0:22:38 > 0:22:44- He proposed to you... - On the way back from the Scilly Isles in this little old plane!
0:22:44 > 0:22:49- Were you sitting next to each other or one behind?- Next to each other.
0:22:49 > 0:22:55- Hope he didn't go down on one knee! - No. Air traffic control at Exeter were impressed when I announced it.
0:22:55 > 0:22:58"I just proposed and she said yes!"
0:23:01 > 0:23:09That's certainly a story to dine out on for a while. Something that didn't last long was the auction.
0:23:09 > 0:23:14How did it feel being on the other end of a phone?
0:23:16 > 0:23:20It was a bit strange when nobody else bid, you know.
0:23:20 > 0:23:24She said, "You need to bid now or they'll take this off.
0:23:24 > 0:23:29"They're not going to go any lower." So I had to trust that was the case.
0:23:29 > 0:23:33We had a budget in mind. We knew we couldn't go over 250.
0:23:33 > 0:23:37It just didn't make sense from a letting potential,
0:23:37 > 0:23:43- but 225 is pretty good.- Yeah. - It gives us some cash, potentially, to do some work on the property.
0:23:43 > 0:23:50- Tell me what you are going to do. - We have a start point... - We have to agree first.
0:23:50 > 0:23:55We need to replaster. We have to do that at either end of the property,
0:23:55 > 0:24:00the master bedroom and sitting room. Then it's the things we'd like to do.
0:24:00 > 0:24:06We'd like to take this wall out and open it up - sitting room/kitchen as one big room. That's really nice.
0:24:06 > 0:24:11- Any idea what the budget's going to be?- Well, there isn't a budget.
0:24:11 > 0:24:18The big expense will be changing the kitchen round and that depends on how much I can curtail Kate's thoughts.
0:24:18 > 0:24:20Why? It sounds like a great idea.
0:24:20 > 0:24:24We could spend £20,000, but you've got to keep some money back,
0:24:24 > 0:24:31- so we'll have to be careful with what we actually spend. Maybe £15,000 is more realistic.- Or five.
0:24:31 > 0:24:36- The man speaks(!) - But this is a business.- Yeah.
0:24:36 > 0:24:43So that's how we need to think about it and operate it. You need to work it through on that basis.
0:24:43 > 0:24:48What's affordable from the rent. The only way to increase that is to get more lettings,
0:24:48 > 0:24:54but you've got to make it more attractive to people to come in. That's our aim.
0:24:54 > 0:24:59So plenty of decisions to make about what to do and how much to spend,
0:24:59 > 0:25:06but as the property's already booked out for the next three months, they've got time to mull it over.
0:25:06 > 0:25:12Well, Trevor and Kate clearly delighted with this place and who can blame them?
0:25:12 > 0:25:19Flying high and living the dream. There may be a few arguments in terms of how much work they do,
0:25:19 > 0:25:26but I can't wait to see how it all turns out. You can find out later in the show.
0:25:26 > 0:25:32Coming up: the decor of this County Durham mid-terrace may need a rethink.
0:25:32 > 0:25:36Not so sure about the half-timbered look.
0:25:36 > 0:25:42In this cute Cornish holiday cottage, high-flying Trevor has a new favourite spot.
0:25:42 > 0:25:47Standing at the sink doing the washing up, looking out to sea.
0:25:47 > 0:25:52But first, in Chiswick, Yvonne's budget was a bit optimistic.
0:25:52 > 0:25:57When I went out to tender, I realised it was me, I was wrong.
0:25:58 > 0:26:05We're back in popular and prestigious Chiswick now. Earlier, I met jewellery designer Yvonne
0:26:05 > 0:26:10who, for £695,00, purchased three properties in one lot -
0:26:10 > 0:26:15a commercial premises with two one-bedroom flats above.
0:26:15 > 0:26:19The ground-floor commercial space was already let out
0:26:19 > 0:26:24so it was the flats upstairs that Yvonne had big plans for.
0:26:24 > 0:26:29I'm going to extend out to the roof terrace, half of that,
0:26:29 > 0:26:34which is the premises I own below.
0:26:34 > 0:26:39And then the flying freehold is going to be a roof terrace.
0:26:39 > 0:26:41I can use it as a roof terrace.
0:26:41 > 0:26:47The flats were in a good state already, but Yvonne was aiming to make them amazing
0:26:47 > 0:26:52by adding space plus a dash of her Danish designer flair.
0:26:52 > 0:26:56We're back over a year and a half later to see the result.
0:26:57 > 0:27:02# We're going to make it better
0:27:03 > 0:27:05# Ooh, yeah
0:27:05 > 0:27:09# Yeah, gonna make it right
0:27:13 > 0:27:17# Here it is There's no way to make it better
0:27:18 > 0:27:23- # Gets you down It's pressure- Pressure...- #
0:27:23 > 0:27:28So Yvonne did get permission for an extension, which goes upstairs, too.
0:27:29 > 0:27:34# Yeah, gonna make it better
0:27:34 > 0:27:36# Ooh, yeah
0:27:36 > 0:27:41# Yeah, gonna make it right
0:27:44 > 0:27:48# Here it is There's no way to make it better
0:27:50 > 0:27:54- # Gets you down It's pressure- Pressure...- #
0:27:54 > 0:27:58I absolutely love the grey wash on the oak floors.
0:27:58 > 0:28:04Talk about Scandi chic! And the new first-floor kitchen and living room is just fabulous.
0:28:04 > 0:28:07The space has been doubled in size.
0:28:07 > 0:28:12I think the space works amazingly well and the lights are hanging here
0:28:12 > 0:28:19not because they're too low, but I'm building here a bookshelf up to approximately here,
0:28:19 > 0:28:24which is also going to be a table. Then you separate the rooms a little bit.
0:28:24 > 0:28:30I think it works wonders. And with the sliding doors. It's just fantastic.
0:28:30 > 0:28:37Yvonne didn't have a set timescale, but had hoped to start the work within a couple of months,
0:28:37 > 0:28:40a plan that didn't quite work out!
0:28:41 > 0:28:47The planning was much longer than I anticipated, partly because it's considered shop front.
0:28:47 > 0:28:53I had to apply for them to approve the colour of my windows, the roof tiles and my bricks.
0:28:53 > 0:29:00Every time you do an application with the council, it's eight weeks. So the first plan was eight weeks.
0:29:00 > 0:29:06Then I had to re-apply for my dormer. Eight weeks again. Then my tiles, so that was another eight weeks.
0:29:06 > 0:29:12So the whole planning was much longer than I had hoped for, sadly, but that's how it goes.
0:29:12 > 0:29:18- But the weight may have been well worth it.- I want to jump with joy.
0:29:18 > 0:29:22It's fantastic. I always go, "Would I like to live there?" Yes.
0:29:22 > 0:29:27If I want to live there, I think a lot of people would, too. That's how I look at it.
0:29:27 > 0:29:32This is a quality project with real imagination and flair.
0:29:32 > 0:29:36From the dazzling tiles in the entrance hall to the dressing area
0:29:36 > 0:29:43and en suite attached to the bedroom, every stylish detail has been carefully chosen.
0:29:43 > 0:29:46The result is stunning, but at what cost?
0:29:46 > 0:29:52Yvonne originally reckoned on a maximum spend of £150,000 for the work,
0:29:52 > 0:29:56so what was her final renovation bill?
0:29:56 > 0:30:00Altogether, I've hit a budget of £247,000.
0:30:00 > 0:30:07And I underestimated that at the time. When I went out to tender, I realised it was me, I was wrong.
0:30:07 > 0:30:13But the end result is better than I hoped for. And I think the value of the flats is better.
0:30:13 > 0:30:15But we'll have to wait and see.
0:30:15 > 0:30:23When you add that £247,000 spend to the £695,000 she paid at auction,
0:30:23 > 0:30:27Yvonne's total outlay here is £942,000.
0:30:27 > 0:30:33So was it money well spent? We asked two local property experts to give us their thoughts.
0:30:37 > 0:30:41They're beautiful and the location is going to be very high in demand.
0:30:41 > 0:30:45I really like what she's done, extending parts,
0:30:45 > 0:30:50but the interesting angles in here are a really nice design feature.
0:30:50 > 0:30:55The terrace downstairs is obviously going to be very good. The finish is very good.
0:30:55 > 0:31:00What I particularly like about this one is the roof terrace.
0:31:00 > 0:31:06The second one is fantastic, with the windows in the roof that bring in so much light.
0:31:06 > 0:31:10They've both got individual qualities. Two fantastic properties.
0:31:10 > 0:31:15- But could they make a fantastic profit? - If they came on the market today,
0:31:15 > 0:31:20I'd expect the first-floor flat to come for £425,000-£450,000.
0:31:20 > 0:31:25If this one came to the market, I'd expect to achieve £400,000-£435,000.
0:31:25 > 0:31:30For this first-floor flat, I would put it on the market for £475,000.
0:31:30 > 0:31:35The second-floor property I would put on the market for £450,000.
0:31:35 > 0:31:40I would expect to obtain offers very close to the asking price.
0:31:41 > 0:31:46Both estate agents valued the commercial property at £250,000,
0:31:46 > 0:31:51so if Yvonne sold the shop and the two flats, at the very top of those valuations
0:31:51 > 0:31:58she'd make a profit of £233,000, minus tax and expenses, but the shop is let
0:31:58 > 0:32:04and she plans to rent out the flats, too. So what kind of rental income might she get from them?
0:32:06 > 0:32:12The first-floor flat I'd expect to achieve around £1,900 per calendar month
0:32:12 > 0:32:16and this top-floor flat I'd expect to achieve around £1,700.
0:32:16 > 0:32:21For the first-floor property, I'd expect around £1,950 per month.
0:32:21 > 0:32:27For the second-floor property, I'd expect to obtain a rental of around about £1,850 per month.
0:32:27 > 0:32:35My budget was always around 400, 425 a week, so this is slightly above, so it's what I had expected.
0:32:35 > 0:32:40With the commercial annual rent of around £14,000,
0:32:40 > 0:32:45if Yvonne were to let both flats for the high end of those values, she'd earn a yield of 5%.
0:32:45 > 0:32:52I hope that after all the time, work and money she's put in here, she's happy with the end result.
0:32:52 > 0:32:57Absolutely. I feel that I do what I love doing.
0:32:57 > 0:33:01Next time I can do it faster and I've got all the connections.
0:33:01 > 0:33:07I feel quite, you know, secure in doing the next project. Very good indeed.
0:33:12 > 0:33:18Today I'm in County Durham in a suburb of Bishop Auckland called Coundon.
0:33:18 > 0:33:24Coundon was once a mining village in its own right, but the mine is long gone
0:33:24 > 0:33:29and in terms of house sales the property market has struggled.
0:33:29 > 0:33:36Although the owner-occupied market has dropped significantly in the last few years,
0:33:36 > 0:33:42the rental market is particularly strong, which makes this auction lot very interesting indeed,
0:33:42 > 0:33:47especially when I tell you the guide price. It's a two-bedroomed mid-terrace.
0:33:47 > 0:33:52£19,950 plus. Let's take a look.
0:33:54 > 0:34:00Well, nice thing to see straight away is a porch. It keeps the cold and wet out on a day like today.
0:34:00 > 0:34:06Then through into your front living room. Well, it's the only living room.
0:34:06 > 0:34:12I like the fact the stairs are positioned there. It gives this a nice, open-plan feel.
0:34:12 > 0:34:17Not so sure about the half-timbered look. Not sure it quite works.
0:34:17 > 0:34:21And likewise that fireplace, although I quite like the surround.
0:34:21 > 0:34:28Take out that gas fire, replace it with an open fire there. That would give a real nice feel.
0:34:28 > 0:34:34Through, though, into the rear of the property where your kitchen is.
0:34:34 > 0:34:40It's not a bad size, but it's really made to feel quite claustrophobic by this bit here,
0:34:40 > 0:34:48but that is tiny in comparison to the problem on the ceiling. They are laminated floor bits.
0:34:48 > 0:34:53Doesn't work, does it? So clearly get rid of that.
0:34:53 > 0:34:56And try to do something in here.
0:34:56 > 0:34:59But, intrinsically, I like it.
0:35:00 > 0:35:07Off the kitchen, the back door currently leads straight into a greenhouse-cum-conservatory.
0:35:07 > 0:35:12And beyond that is a fairly large shed.
0:35:12 > 0:35:18Now I love a shed as much as the next man, but in this case I'd be tempted to clear this garden out,
0:35:18 > 0:35:22greenhouse, shed and all, to see exactly what you've got.
0:35:22 > 0:35:26Then you might even think about a proper small extension out here.
0:35:26 > 0:35:32Back inside and up the stairs you've got the shower room and two bedrooms -
0:35:32 > 0:35:38one double and one single. The wood effect ceilings appear here, too,
0:35:38 > 0:35:42but so does another rather unwelcome feature.
0:35:42 > 0:35:48Here in the second bedroom there's a single bed - fine. And a boiler.
0:35:48 > 0:35:55Not so fine. Why? Well, bedrooms and boilers is a really potentially lethal combination.
0:35:55 > 0:36:02If you watched the show, you'll know that I'm always going on about making sure gas appliances are
0:36:02 > 0:36:08properly serviced. The reason is if they start to burn inefficiently, they produce carbon monoxide.
0:36:08 > 0:36:15If it's in the bedroom, this goes straight in to where you're sleeping. Not good news.
0:36:15 > 0:36:22So always make sure your boiler is regularly serviced and, ideally, don't have it in the bedroom.
0:36:23 > 0:36:29Carbon monoxide poisoning claims more than 50 lives in the UK every year,
0:36:29 > 0:36:35so do please ensure that all gas appliances, including cookers and fires, are correctly installed
0:36:35 > 0:36:39and regularly serviced.
0:36:39 > 0:36:42But for now, onwards and upwards to the loft space.
0:36:42 > 0:36:46With a rather spectacular carpet!
0:36:46 > 0:36:51Now access via these stairs, it literally is just a storage space,
0:36:51 > 0:36:55but I wonder if you could be clever and get some more permanent access.
0:36:55 > 0:37:02It would require building regulation's approval and doing soundproofing, strengthening.
0:37:02 > 0:37:08On the other hand, there is going to be a ceiling price in properties here so it may not be worth it.
0:37:08 > 0:37:11Talk to an estate agent and find out.
0:37:12 > 0:37:15And as if by magic here is an estate agent
0:37:15 > 0:37:23to give us her thoughts on this mid-terrace house and its £19,950 guide price.
0:37:25 > 0:37:30It will need some extensive work doing to the property. Overall,
0:37:30 > 0:37:36it's a good size. Outsize space is the major thing with this property.
0:37:36 > 0:37:40The outside space is quite a good addition.
0:37:40 > 0:37:44What about going up into the loft space?
0:37:45 > 0:37:50I don't think I would recommend opening up the attic space
0:37:50 > 0:37:58because of the required building regulations that are needed. I don't think it will be cost-effective.
0:38:00 > 0:38:07Fair enough. So if you refurbish the property without extending it, what might it fetch if sold on?
0:38:08 > 0:38:15I would recommend this property was placed on the market at a value of £35,000-£40,000.
0:38:16 > 0:38:19What about the rental market?
0:38:20 > 0:38:26The property should achieve in the region of £375 per calendar month.
0:38:27 > 0:38:33Well, a few things to sort out, not least this rather unusual conservatory at the back.
0:38:33 > 0:38:40But do that and get this property for around the guide price and it could be a real moneyspinner.
0:38:40 > 0:38:43Let's see who agreed when it went under the hammer.
0:38:45 > 0:38:48Lot number 31. A conveniently situated terrace property.
0:38:48 > 0:38:53It's got gas central heating, double glazing.
0:38:53 > 0:38:57Anyone to start me at £20,000? Do I have £20,000 anywhere?
0:38:57 > 0:39:00How about 16?
0:39:00 > 0:39:04I need £16,000... In the doorway at 16. 17.
0:39:04 > 0:39:0618. 19.
0:39:06 > 0:39:1120? 19,000. Gentleman right at the front at £19,000.
0:39:11 > 0:39:1620,000 anywhere else? It's against you. It's here at £19,000.
0:39:16 > 0:39:20500? 500 bid. 19 and a half.
0:39:20 > 0:39:2220. 20 bid. 20 and a half?
0:39:22 > 0:39:26I'm here and I'm selling at £20,000. It's your last chance. 20 and a half?
0:39:26 > 0:39:33I will take a half elsewhere. I'm selling it at £20,000. I'm going once at 20,000.
0:39:33 > 0:39:37Going for the second time. At £20,000.
0:39:37 > 0:39:40Sold at £20,000.
0:39:40 > 0:39:44It was Tony who snapped this one up for 20,000.
0:39:44 > 0:39:50He was once a bricklayer, but gave that up and became a sergeant in the Royal Artillery.
0:39:50 > 0:39:56For the last six years he's been working around the world with a specialist security force,
0:39:56 > 0:40:03but Tony now has his sights trained on another kind of security - the world of property development.
0:40:03 > 0:40:05'Tony, great to meet you.'
0:40:05 > 0:40:11- Congratulations.- Thank you.- Tell me why you wanted to buy this place.
0:40:11 > 0:40:16I'd been after a project for quite a while. Saw it advertised for auction.
0:40:16 > 0:40:20At the guide price, I thought it was worth to come and have a look.
0:40:20 > 0:40:26- I had a look round and thought it was worth a punt, basically.- Right.
0:40:26 > 0:40:32- And you got it for £50 over the guide price!- I know. Robbed! - Yeah, terrific.
0:40:32 > 0:40:38- So why have you bought it? To do what with it?- I've done a property up previously, spent far too much,
0:40:38 > 0:40:42- didn't make us much as I wanted. - Why did you spend too much?
0:40:42 > 0:40:46I got trapped in the, "If I lived here, I would do that."
0:40:46 > 0:40:51- I probably did a lot more to it than I really should have done. - What did you put in?
0:40:51 > 0:40:58Just going into the kitchen. Instead of a plain, nice, new kitchen, little wine chillers and...
0:40:58 > 0:41:03- Oh, really? Wow.- Ridiculous. - Well, you say it's ridiculous...
0:41:03 > 0:41:09- I thought if somebody was looking, it would help to sell it.- How quickly did it sell?- About three months.
0:41:09 > 0:41:14- I was hoping you'd say it sold to the first person who came round! - It had a higher price.
0:41:14 > 0:41:17I finally got it at a lower price.
0:41:19 > 0:41:25'Well, here's hoping Tony can avoid the temptation to overspend on wine chillers and such like.
0:41:25 > 0:41:31'He has done his homework on the area and will try to sell the mid-terrace on,
0:41:31 > 0:41:37'but is open to the idea of letting it, too. This could even be the start of a property portfolio.'
0:41:39 > 0:41:44- So tell me what you're going to do. - Once I've got everything out of it,
0:41:44 > 0:41:48we'll obviously need a new kitchen.
0:41:48 > 0:41:53The bathroom, it needs changing. I'd like to get a bath back in to it,
0:41:53 > 0:41:58but it's very small. New bathroom suite, decorated throughout.
0:41:58 > 0:42:04- Shift the boiler that's currently taking up a lot of space in the second bedroom.- Not ideal.
0:42:04 > 0:42:08And just decor, carpet the place throughout.
0:42:08 > 0:42:14- And at the back you've got an interesting conservatory/greenhouse!- Yeah.
0:42:14 > 0:42:19- All that will be going. Clearing everything out the back.- Right.
0:42:19 > 0:42:25- What's the budget, then?- I'd like to get it all done for £7,500. 10 at the very most.
0:42:25 > 0:42:31- With you doing how much of the work? - I've got some guys who helped me out on that last place
0:42:31 > 0:42:36who have done rewiring and the kitchens and bathrooms.
0:42:36 > 0:42:42But all the manual donkey work, I'll do it myself. Decorating it, painting it. As much as I can
0:42:42 > 0:42:46- to try to keep the cost down. - And timescale?- As quick as I can.
0:42:46 > 0:42:50Two months at the very most, I hope. Depending on what we find.
0:42:50 > 0:42:55- Congratulations. Good luck. Look forward to seeing it.- Thank you.
0:42:55 > 0:43:01So Tony has spotted the potential for this place and his previous experience of overspending
0:43:01 > 0:43:07and not quite making as much as he'd hoped for clearly hasn't put him off. How will he get on?
0:43:07 > 0:43:12Will he bring his skills to bear? You can find out later in the show.
0:43:15 > 0:43:21Well, time waits for no man. Have our buyers managed to fulfil their promises?
0:43:21 > 0:43:25Has the hard work been done? Let's reveal all.
0:43:25 > 0:43:31# Ocean's replays
0:43:31 > 0:43:36# Slow motion waves... #
0:43:36 > 0:43:41We've returned to Portmellon on the Cornish coast.
0:43:41 > 0:43:48Perched on a high spot above the sea and sandy beach was this three-bedroomed holiday apartment.
0:43:48 > 0:43:55Kate and Trevor purchased it at auction for their first and only bid, dead on the guide price
0:43:55 > 0:44:01of £225,000. However, the finances regarding this place weren't so straightforward elsewhere.
0:44:02 > 0:44:06- Any idea what the budget's going to be?- There isn't a budget.
0:44:06 > 0:44:14- Hm?- The big expense will be changing the kitchen round. That depends how much I can curtail Kate's thoughts.
0:44:14 > 0:44:16Why? It sounds like a great idea.
0:44:16 > 0:44:20You've got to keep some money back for a rainy day.
0:44:20 > 0:44:28- So we'll have to be careful with what we actually spend. Maybe 15,000 is more realistic.- Or five.
0:44:29 > 0:44:35So would Trevor or Kate win the budget debate? We've come back to see them and their new purchase
0:44:35 > 0:44:37six months on.
0:44:39 > 0:44:45# But I am up Riding high amongst the waves
0:44:45 > 0:44:47# I can feel
0:44:47 > 0:44:53# Like I have a soul that has been saved
0:44:53 > 0:44:56# I can feel like I've
0:44:56 > 0:45:01# Put away my early grave... #
0:45:01 > 0:45:05Well, Kate clearly got her way when it came to the wall.
0:45:05 > 0:45:10This works much better as a large, light, open-plan living, kitchen and dining area.
0:45:10 > 0:45:15This was a closed-off kitchen, so it was quite dark.
0:45:15 > 0:45:19It did have a nice sea view, but most of it was lost in here.
0:45:19 > 0:45:24Taking the wall down now means we've got a nice, big eating area,
0:45:24 > 0:45:30a nice, modern, bright kitchen and it maximises the sea view. That's what I'm pleased with.
0:45:30 > 0:45:33As a holiday let, it's lovely.
0:45:33 > 0:45:38The living area in this room has seen some changes, too.
0:45:39 > 0:45:43The biggest change we've made here is putting in the Velux window,
0:45:43 > 0:45:50which has really opened up this end, brightened it and given us a fantastic view out to sea
0:45:50 > 0:45:52and the beach at Portmellon.
0:45:52 > 0:45:59And the second most important thing is our log burner, which has really brought some warmth to the place
0:45:59 > 0:46:03and made it very cosy, a delightful place to spend the evenings now.
0:46:05 > 0:46:11I'd love to come here on holiday at any time. It's ideal that Trevor and Kate will be able to enjoy it
0:46:11 > 0:46:17during the quieter months. Through the back of the property, the green in the hall is gone.
0:46:22 > 0:46:27Each of the bedrooms has been redecorated and the layout left as was,
0:46:27 > 0:46:32however, the couple do plan to do further work such as installing a new bathroom suite
0:46:32 > 0:46:38once the upcoming busy season has passed. Looks can be deceiving, though,
0:46:38 > 0:46:42and the refurbishments weren't straightforward.
0:46:42 > 0:46:45It's been pretty difficult.
0:46:45 > 0:46:50If you spoke to some of our skilled helpers here, they would say, "What a awkward place."
0:46:50 > 0:46:56It's in the loft space of a building that goes back before the Napoleonic Wars.
0:46:56 > 0:47:03It was never designed as a domestic dwelling, so everything has to be tailored to fit,
0:47:03 > 0:47:06everything was a challenge in that regard.
0:47:09 > 0:47:13But what may have been more challenging was their budget
0:47:13 > 0:47:18which when I met them was anywhere between £5,000 and £20,000.
0:47:18 > 0:47:24We decided in the end - it wasn't Trevor's choice - to knock the wall down and go the whole hog.
0:47:24 > 0:47:31- It meant new kitchen, new everything.- We went through every item. It came to £18,500.
0:47:31 > 0:47:37We said, "It's the right decision. If we don't do it now, we never will, so, Kate, as ever, you're right.
0:47:37 > 0:47:42"Let's get on and do it and we've got £1,500 contingency." We're now well into that.
0:47:42 > 0:47:49Remember that they couldn't do any work at the beginning as the property was rented for holiday lets
0:47:49 > 0:47:55but after three months they're nearly finished for now, with just some external roof work outstanding.
0:47:55 > 0:47:59Having been here getting their hands dirty over the last few weeks,
0:47:59 > 0:48:03Trevor's now enjoying cleaning up for various reasons.
0:48:03 > 0:48:09My favourite place of all, for once, is standing at the sink doing the washing up, looking out to sea.
0:48:11 > 0:48:15Well, let's see what two local property experts make of this place.
0:48:15 > 0:48:18It cost £225,000 at auction
0:48:18 > 0:48:25and they spent approximately £20,000 on the refurbishment, which brings the total to £245,000.
0:48:29 > 0:48:33This ticks a lot of boxes for the holiday market
0:48:33 > 0:48:39because there's lots of room for children, mum and dad have got a really nice bedroom,
0:48:39 > 0:48:43heave the children out onto the beach. Perfect.
0:48:43 > 0:48:48I think they've done everything they possibly can to modernise it
0:48:48 > 0:48:52and capitalise on the natural light.
0:48:52 > 0:48:59What do the experts think the refurbished apartment might fetch on the resale market?
0:49:00 > 0:49:06The remarket value for this property we would market at £265,000.
0:49:06 > 0:49:12I think they could put the property on the market at something towards £300,000, but probably not quite.
0:49:12 > 0:49:17- I feel pretty happy with that. - It's better than where we started.
0:49:17 > 0:49:23- Probably in line with what we thought we might have to pay for it originally at auction.- Yes.
0:49:23 > 0:49:28As they didn't have to pay that premium price in the auction,
0:49:28 > 0:49:34they could be looking at a pre-tax profit of £20,000-£55,000.
0:49:34 > 0:49:40However, this purchase was about Kate and Trevor creating a place by the sea to enjoy,
0:49:40 > 0:49:44while letting it out to holidaymakers the rest of the year.
0:49:44 > 0:49:49How much could they charge per week at the height of the season?
0:49:49 > 0:49:53Holiday letting this property, we could achieve £1,200 per week.
0:49:53 > 0:49:57As a holiday let, of course, it's going to fly
0:49:57 > 0:50:01and you could be looking at... £1,100, £1,200 a week
0:50:01 > 0:50:07- in those core, high-value weeks. - That's what it was letting for previously.
0:50:07 > 0:50:15For us, it's a great property to own and take advantage of. And to let others stay here and enjoy it, too.
0:50:18 > 0:50:24Back now to County Durham and this two-bed mid-terrace in Coundon.
0:50:24 > 0:50:31It was bought at auction for £20,000 by Tony, who's embarking on a new career as a property developer.
0:50:31 > 0:50:38This was to be his second renovation and he admitted to overspending on his last project.
0:50:38 > 0:50:43- What were the things you put in...? - Just going into the kitchen
0:50:43 > 0:50:49- and instead of a plain, nice, new kitchen, little wine chillers and... - Oh, really? Oh, wow!
0:50:49 > 0:50:54So is this going to be wine chillers and spa baths all round?
0:50:54 > 0:50:58Or will Tony have kept a tighter rein on his budget this time?
0:50:58 > 0:51:03Three months after our first visit, we're back to reveal all.
0:51:18 > 0:51:23Nice one. It looks like Tony has avoided the temptation to splash the cash on frivolous extras
0:51:23 > 0:51:29and the end result is a no-nonsense renovation which works really well.
0:51:29 > 0:51:33The biggest transformation, though, is out the back.
0:51:33 > 0:51:36Yeah, the conservatory,
0:51:36 > 0:51:41it had to go, unfortunately. Completely stripped out the back yard
0:51:41 > 0:51:47but that in itself revealed a few problems. It had some quite tall, old walls.
0:51:47 > 0:51:53I was going to reduce them, but the whole things were going over,
0:51:53 > 0:51:57so one was taken down and rebuilt completely. The other was made good.
0:51:58 > 0:52:05In a previous life, Tony was a brickie, so he enjoyed dusting off his trowel and rebuilding the wall.
0:52:05 > 0:52:11He also had to replace the wooden beam in the kitchen with a new structural wall,
0:52:11 > 0:52:19but I think this kitchen is still a good size. And the sitting room feels so much more spacious, too.
0:52:19 > 0:52:25Upstairs, the changes continue. There's still no bath in the bathroom,
0:52:25 > 0:52:29but it is a tight space and the shower is fine.
0:52:29 > 0:52:36The bedrooms are also looking good, but what about that boiler in the second bedroom conundrum?
0:52:36 > 0:52:40The boiler's still here, unfortunately.
0:52:40 > 0:52:44I got a gas fitter in to take a look at it.
0:52:44 > 0:52:50Unfortunately, because of building regulations, there wasn't enough space in the loft.
0:52:50 > 0:52:55It was all to do with having it on a party wall. It was the same story in the kitchen.
0:52:55 > 0:53:01There was nowhere to put it. I'm going to get a carbon monoxide detector fitted
0:53:01 > 0:53:04just to give any future tenants peace of mind.
0:53:04 > 0:53:10Having the boiler in a bedroom cupboard might not be ideal, but Tony took professional advice
0:53:10 > 0:53:16and it complies with safety regulations. That carbon monoxide detector is vital.
0:53:16 > 0:53:19He's left the loft as storage space
0:53:19 > 0:53:24and when the weather improves plans to put some decking in the back yard.
0:53:24 > 0:53:32Now I'm relieved to see that Tony's avoided the wine chiller excesses of his last renovation project,
0:53:32 > 0:53:36but he has had to spend more money than he hoped on this project.
0:53:36 > 0:53:42In the sitting room, there was quite a lot of fitted units and all the furniture.
0:53:42 > 0:53:48I didn't have a good impression of what the place was like, but I had quite a bad damp problem.
0:53:48 > 0:53:52So all the internal walls were quite damp.
0:53:52 > 0:53:57Once we got the wallpaper off! I couldn't see it initially, but it was quite damp.
0:53:58 > 0:54:05Sorting out the damp course and replastering has put Tony about a month over on his timescale,
0:54:05 > 0:54:11but what has it done to his budget, which was £7,500-£10,000 tops?
0:54:11 > 0:54:18By the time I've done the little bits in the yard, it's probably more like 12,000.
0:54:19 > 0:54:25A spend of £12,000 would bring Tony's total outlay here to £32,000,
0:54:25 > 0:54:30but is there still room for a bit of profit in this mid-terrace?
0:54:30 > 0:54:36We asked two local property experts, including the one from before, to give us their opinions.
0:54:38 > 0:54:41I think the refurbishment
0:54:41 > 0:54:47is very good. It's to a very high standard and he has made a massive difference with the property.
0:54:47 > 0:54:52It's very well refurbished. There's been an awful lot of work done.
0:54:52 > 0:54:57There was a problem with damp and that's been sorted out with a guarantee
0:54:57 > 0:55:00and a new kitchen, which is super.
0:55:00 > 0:55:06Tony's preferred option was to sell the property on, so what do the experts think
0:55:06 > 0:55:11this refurbished mid-terrace would fetch on the rather slow local market?
0:55:12 > 0:55:19In the current market, I'd recommend putting this property up for sale for a price in the region of £55,000
0:55:19 > 0:55:24but I do think you'd look at accepting around the £50,000 mark.
0:55:24 > 0:55:30The sale valuation I would put on this property would be £50,000-£55,000.
0:55:30 > 0:55:36Unbelievable. I can't believe it. I think that's well above what I was expecting.
0:55:36 > 0:55:40I was expecting mid-40s, so, yeah, that's fantastic.
0:55:41 > 0:55:47Those resale values would mean Tony could be looking at a profit, before tax and expenses,
0:55:47 > 0:55:51of between £18,000 and a max of £23,000 if he sells on.
0:55:51 > 0:55:54What about the rental market?
0:55:54 > 0:55:59In this area, a property like this, you'd be looking at a rental figure
0:55:59 > 0:56:03of in the region of £330-£335 per calendar month.
0:56:03 > 0:56:08I would suggest £395 per calendar month.
0:56:08 > 0:56:14I'd sort of thought of a rental figure somewhere in-between, maybe around 370,
0:56:14 > 0:56:16so that's encouraging as well.
0:56:18 > 0:56:23The experts' valuations would mean a yield of between 12% and almost 15%.
0:56:23 > 0:56:28Now that represents a seriously good return on Tony's investment.
0:56:28 > 0:56:32Enough to tempt him down the rental route perhaps?
0:56:32 > 0:56:36Well, I had originally decided that I was going to sell it,
0:56:36 > 0:56:42but with the additional costs of refurbishing the place, I'll look at renting it for a couple of years
0:56:42 > 0:56:45and recoup the money I've spent.
0:56:47 > 0:56:54So many different experiences of buying at auction and we'll have plenty more next time.
0:56:54 > 0:56:59- Make sure you join us then for more Homes Under The Hammer. - Goodbye for now.- Goodbye.
0:57:15 > 0:57:18Subtitles by Red Bee Media Ltd