0:00:01 > 0:00:03More and more people are buying property,
0:00:03 > 0:00:07not just as a place to live, but as an investment.
0:00:07 > 0:00:09It's a great way to save for the future
0:00:09 > 0:00:13but you have to make sure you buy at the right price first.
0:00:13 > 0:00:17One way to do that is to buy your next home under the hammer.
0:00:42 > 0:00:45The three properties on today's show are all very different.
0:00:45 > 0:00:50The three owners will all be hoping for the same thing to make some money.
0:00:50 > 0:00:51Let's see what they bought.
0:00:52 > 0:00:56It's three years since we last visited this property in Ripon
0:00:56 > 0:00:58but the progress had been slow.
0:00:58 > 0:01:02Stay with us to find out how it finally turned out.
0:01:02 > 0:01:04In southwest London,
0:01:04 > 0:01:07the guide price of this maisonette seems too good to be true.
0:01:07 > 0:01:12There's definitely something wrong with it. The question is, what?
0:01:12 > 0:01:18There's a lot of work needed to bring this cracking house in Derbyshire up-to-date.
0:01:18 > 0:01:19Before you start any of that,
0:01:19 > 0:01:23you've got to check that the house is actually structurally OK.
0:01:25 > 0:01:27All of these properties went to auction.
0:01:27 > 0:01:30We'll find out who bought them and what they paid for them
0:01:30 > 0:01:32when they went under the hammer.
0:01:36 > 0:01:41We're returning to a property we first showed you in August 2009.
0:01:41 > 0:01:44It was in the beautiful city of Ripon in North Yorkshire,
0:01:44 > 0:01:47founded over 1,300 years ago.
0:01:47 > 0:01:51Some buildings have stood here since the 7th century.
0:01:51 > 0:01:56I'm here to see another historic property, this one built in 1750.
0:01:56 > 0:01:59It's a part commercial, part residential unit
0:01:59 > 0:02:01with a double frontage onto this road.
0:02:01 > 0:02:06The first thing I'm noticing is that it is on one of the main routes into the centre of Ripon
0:02:06 > 0:02:13and it's right by this set of traffic lights which could explain the £50,000 guide price.
0:02:13 > 0:02:15Let's take a look inside.
0:02:15 > 0:02:20This roadside position is definitely a big negative.
0:02:20 > 0:02:24With narrow streets and pavements, the house seems to shake and rattle
0:02:24 > 0:02:26every time large vehicles pass by.
0:02:28 > 0:02:31It's hard to imagine this as a shop really, apart from the fact
0:02:31 > 0:02:35you have these huge great windows looking onto the street.
0:02:35 > 0:02:38Given this is listed, that could be a good thing or a bad thing
0:02:38 > 0:02:44because one of the things the planners would not want you to do is change the windows.
0:02:44 > 0:02:46If this was going to be a residential place,
0:02:46 > 0:02:50windows like that looking onto the main road might not be ideal.
0:02:50 > 0:02:54But at the moment, throwing lots of natural light in here which we really like.
0:02:54 > 0:02:56Original features you have the fireplace there,
0:02:56 > 0:02:58through to a second front room.
0:02:58 > 0:03:01Again, not ideal that the room is right on that road,
0:03:01 > 0:03:04right by the set of traffic lights.
0:03:04 > 0:03:06Not really brilliant.
0:03:06 > 0:03:11Of course there's nothing you can do about the proximity of the road.
0:03:11 > 0:03:12Owing to its listed status,
0:03:12 > 0:03:15UPVC double glazing would be out of the question.
0:03:15 > 0:03:18Replica windows will have to be made.
0:03:18 > 0:03:22Is there anything else that should make buyers hesitate to buy this?
0:03:22 > 0:03:25None of the door frames are standard height.
0:03:25 > 0:03:28I think if you're a tall person, you would be banging your head
0:03:28 > 0:03:30quite regularly, but it does give a certain sense of charm.
0:03:30 > 0:03:34As does things like this, the floor.
0:03:34 > 0:03:37Yorkshire stone, absolutely beautiful.
0:03:37 > 0:03:39The only issue is, it doesn't have a damp-proof course,
0:03:39 > 0:03:42I would guess, and it would be expensive to do something about that.
0:03:42 > 0:03:45Maybe take it up, which would be a real shame, but that is the only way
0:03:45 > 0:03:48you're going to get that important damp-proof course in.
0:03:48 > 0:03:50This, I imagine, at some stage was the kitchen.
0:03:50 > 0:03:54At the moment, it's pretty much like the rest of the house,
0:03:54 > 0:03:58a bit higgledy-piggledy. The window is out onto a small courtyard.
0:03:58 > 0:04:03It is the natural place for the kitchen in the house to be.
0:04:03 > 0:04:06But there's a lot of work before you get to that stage.
0:04:06 > 0:04:11So, there's flooring to be sorted, along with damp proofing.
0:04:11 > 0:04:15The walls need to be skimmed and plastered.
0:04:15 > 0:04:16The ceiling has seen better days
0:04:16 > 0:04:20and there's probably wood treatment to be done, too, and that's just downstairs.
0:04:20 > 0:04:25Upstairs, my guess is that this was the flat associated with the shop downstairs.
0:04:25 > 0:04:29You've got a little room there, a bedroom there,
0:04:29 > 0:04:30stairs up to the attic room.
0:04:30 > 0:04:36A living room area there and through to, judging by the fact there's a sink,
0:04:36 > 0:04:39I'm guessing this was where the kitchen was.
0:04:39 > 0:04:41As you can see, it's extremely basic and it gets worse
0:04:41 > 0:04:45because there's also a door that leads into the bathroom.
0:04:45 > 0:04:48So not ideal whatsoever.
0:04:48 > 0:04:52However, what this property does offer is options.
0:04:52 > 0:04:56You can keep the unit downstairs as a commercial unit,
0:04:56 > 0:04:59you could convert upstairs into a much better presented flat,
0:04:59 > 0:05:02you could convert downstairs to a flat.
0:05:02 > 0:05:05But don't forget this is a listed buildings so all those things
0:05:05 > 0:05:09would not only have to have building regulations approval, planning permission,
0:05:09 > 0:05:11it will also need listed buildings approval
0:05:11 > 0:05:14so there's a lot of hoops to jump through.
0:05:14 > 0:05:16But there's a lot of property here
0:05:16 > 0:05:20when you bear in mind it was guided at just £50,000.
0:05:20 > 0:05:22In addition to the first floor,
0:05:22 > 0:05:25there's also an attic space which could be converted.
0:05:25 > 0:05:27That would take a lot of work.
0:05:27 > 0:05:30I'm not sure why there are concrete floors here.
0:05:30 > 0:05:31They definitely need to go.
0:05:31 > 0:05:36With the large bathroom, if you converted this into living accommodation
0:05:36 > 0:05:38and move the kitchen downstairs,
0:05:38 > 0:05:43you could comfortably make a four bed house with bags of character.
0:05:43 > 0:05:47Well, an interesting property for sure,
0:05:47 > 0:05:51but not one for the faint-hearted or inexperienced.
0:05:51 > 0:05:54This place could swallow money up like there's no tomorrow.
0:05:54 > 0:05:58One thing is for certain, because of the complications of the commercial unit,
0:05:58 > 0:06:02the fact it's listed, it's well worth getting a solicitor
0:06:02 > 0:06:04to check with the legal pack before you buy.
0:06:04 > 0:06:07Let's see who went for it when it went to the auction.
0:06:12 > 0:06:14OK, moving on, we come to Ripon now.
0:06:14 > 0:06:16We're skirting around North Yorkshire a bit, aren't we?
0:06:16 > 0:06:21Two-storey with a very, very useful attic.
0:06:21 > 0:06:24Somebody give me £40,000 for it? 40 bid straight away, thank you.
0:06:24 > 0:06:27At £40,000. Two at the back, 42,000. 44 with you.
0:06:27 > 0:06:2844, 46, may I now?
0:06:28 > 0:06:31At 46, will you make it 49?
0:06:31 > 0:06:3548 bid, I'll take nine. A new bidder.
0:06:35 > 0:06:4049 against you, sir. 50 is now bid against you.
0:06:40 > 0:06:4451, 52, may I now? At 52.
0:06:44 > 0:06:4653, 54, will you?
0:06:46 > 0:06:5055, 56 is it now?
0:06:50 > 0:06:5457, may I? 58, will you now?
0:06:54 > 0:06:5858 bid. 59, may I? 60,000. 61? 62?
0:06:58 > 0:07:0663? Will you make it four? 64, 65 is bid.
0:07:06 > 0:07:1166,500.
0:07:11 > 0:07:1567. 67,500.
0:07:15 > 0:07:2067,500. 68, may I now? 68 is bid.
0:07:20 > 0:07:22Nine, may I?
0:07:22 > 0:07:26£68,500, the gentleman standing.
0:07:26 > 0:07:30All out seated at £68,500. All done?
0:07:32 > 0:07:36It is yours, sir, thank you very much. The price is £68,500.
0:07:36 > 0:07:45So for £68,500, the new owners of the grade two listed corner shop in Ripon are Giles and Claire.
0:07:45 > 0:07:48I met them back at the property to hear about their plans.
0:07:50 > 0:07:53Giles, Claire, congratulations!
0:07:53 > 0:07:58- Thank you.- A big property? - A big property for the price, yes.
0:07:58 > 0:08:02Absolutely for the price. Why did you want to buy it?
0:08:02 > 0:08:08Well, it was really to get on the market in the UK first of all.
0:08:08 > 0:08:12- This is the first property that we own.- You talk about in the UK?
0:08:12 > 0:08:14We have a property in the French Alps.
0:08:14 > 0:08:19- Wow!- It was just something that we've got as a base here as well.
0:08:19 > 0:08:24- How come you have a property in the French Alps? - We run a business there.
0:08:24 > 0:08:29- We run a catered chalet. - Great. Whereabouts?- La Plagne.
0:08:29 > 0:08:31Giles and Claire met in the French Alps.
0:08:31 > 0:08:34They had always dreamt of running a chalet in France
0:08:34 > 0:08:37and achieved that in 2004.
0:08:37 > 0:08:39But with that work being very seasonal,
0:08:39 > 0:08:43they decided they needed another project and an investment
0:08:43 > 0:08:46in the UK which they could work on for part of the year.
0:08:49 > 0:08:52With family and friends in the local area,
0:08:52 > 0:08:54Ripon seemed the ideal spot,
0:08:54 > 0:08:58but boy, what a project they've taken on.
0:08:58 > 0:09:00What sort of experience have you got?
0:09:00 > 0:09:04I can paint! I'm a painter and decorator.
0:09:04 > 0:09:07- Oh, are you? - And Giles is a plasterer.
0:09:07 > 0:09:12- I'm a general builder by trade but plastering is my skill.- Great.
0:09:12 > 0:09:15So that will keep me busy.
0:09:15 > 0:09:18I had this image that you were going to say, I'm excellent at snowboarding
0:09:18 > 0:09:21and you were going to say, I can do fantastic parallel turns!
0:09:21 > 0:09:25You can plaster and you can paint and decorate? That's brilliant.
0:09:25 > 0:09:30- Can you both ski?- Yes, we can ski quite well.- How well?
0:09:30 > 0:09:37- I represented England. - Oh, that well, then?
0:09:37 > 0:09:39You represented England in what?
0:09:39 > 0:09:42- In the slalom.- Did you?
0:09:42 > 0:09:45Well, I think Giles's plastering skills
0:09:45 > 0:09:49and Claire's decorating ability might be more useful here.
0:09:49 > 0:09:52It's going to be an uphill struggle to turn this property around.
0:09:52 > 0:09:54What are you going to do to the place?
0:09:54 > 0:09:57We're going to have the kitchen downstairs, of course.
0:09:57 > 0:10:01The shopfront will be the living area, lounge.
0:10:01 > 0:10:06Then upstairs, three or four double bedrooms
0:10:06 > 0:10:09and going into the attic then,
0:10:09 > 0:10:14we will renovate that as well into maybe office space or bedroom.
0:10:14 > 0:10:17How much have you planned to spend?
0:10:17 > 0:10:21Erm, probably 20, 25. A lot of the work...
0:10:21 > 0:10:22It's going to be self-built.
0:10:22 > 0:10:25It's going to be done between us
0:10:25 > 0:10:29and family and a few friends, so hopefully we can keep it quite low.
0:10:31 > 0:10:34Giles and Claire's plans to convert the old shop and flat
0:10:34 > 0:10:37into one large house sounded very impressive.
0:10:37 > 0:10:42When we went back after 14 months to see the results...
0:10:44 > 0:10:47Well, the outside was a big improvement,
0:10:47 > 0:10:52with snowy white rendered walls and a new black front door.
0:10:55 > 0:10:56While inside?
0:10:56 > 0:11:00Well, on the face of it it's not quite so impressive,
0:11:00 > 0:11:05but as with any assault on a mountain, the key to success is preparation.
0:11:06 > 0:11:11As you can see, one of the major changes was opening up this wall,
0:11:11 > 0:11:17and then the other change was we had to take up the old floor.
0:11:17 > 0:11:21We took out about five tons of rubble.
0:11:21 > 0:11:24DPC'd and insulated it and put the Indian slate down
0:11:24 > 0:11:28and now it's just waiting to be plastered and finished.
0:11:28 > 0:11:32So, in fact, the amount of work done here is deceptive.
0:11:32 > 0:11:34They've made structural changes, rewired,
0:11:34 > 0:11:37replumbed and damp-proofed throughout.
0:11:37 > 0:11:40By moving the kitchen downstairs, they've altered the layout
0:11:40 > 0:11:42so there are now four bedrooms upstairs,
0:11:42 > 0:11:47but owing to the grade two listing there were some things they couldn't change.
0:11:47 > 0:11:50With the windows, we decided to make them good ourselves
0:11:50 > 0:11:52cos they were going to be too expensive
0:11:52 > 0:11:56if we got brand-new ones, and then we got somebody to help us
0:11:56 > 0:12:02to re-weight them and re-cord them and they've come up pretty good.
0:12:02 > 0:12:04Giles and Claire tackled other jobs.
0:12:04 > 0:12:06They'd stripped out the bathroom
0:12:06 > 0:12:09and removed the concrete from the attic floor.
0:12:09 > 0:12:13But they did have a chalet business to run.
0:12:13 > 0:12:15That meant they were only able to spend four or five months
0:12:15 > 0:12:18working on the house at this stage.
0:12:18 > 0:12:21They'd employed a specialist team to lay the floor
0:12:21 > 0:12:24but the rest of the work was done with help from family and friends.
0:12:24 > 0:12:29Claire's dad actually dropped in to lend the electrician a hand.
0:12:29 > 0:12:33But unfortunately my father fell through the floorboards
0:12:33 > 0:12:35in the bathroom, but he was OK.
0:12:35 > 0:12:39He didn't actually end up in the kitchen!
0:12:39 > 0:12:41# We're falling
0:12:41 > 0:12:42# Through a hole. #
0:12:42 > 0:12:45But with all that help from friends and family,
0:12:45 > 0:12:47at least their budget hadn't gone through the roof.
0:12:49 > 0:12:53I think, at the moment, we're up to £11,000.
0:12:54 > 0:12:58I would like to say that we won't go over 25,000.
0:12:58 > 0:13:02As the ski season approached, the two were ready to down tools
0:13:02 > 0:13:07and up sticks, or rather ski poles, and head for France.
0:13:07 > 0:13:09# You know the nearer your destination
0:13:09 > 0:13:12# The more you're slip-slidin' away. #
0:13:12 > 0:13:16You can find out later in the programme whether Giles and Claire
0:13:16 > 0:13:20finally reached the peak of this challenge almost three years
0:13:20 > 0:13:22after they bought the property.
0:13:27 > 0:13:32Brixton and surrounding areas such as Tulse Hill are busy and bustling.
0:13:32 > 0:13:37# We're gonna rock down to Electric Avenue. #
0:13:37 > 0:13:40With a multicultural creative vibe,
0:13:40 > 0:13:44in recent years, this part of southwest London has become trendy
0:13:44 > 0:13:48so it's no surprise that demand around here is strong.
0:13:48 > 0:13:53The property I'm here to see is not in the vibrant beating heart
0:13:53 > 0:13:56of Brixton but much nearer Tulse Hill.
0:13:56 > 0:14:00It's an area probably due a price rise in the coming years,
0:14:00 > 0:14:03which still doesn't explain the guide price
0:14:03 > 0:14:06of this two-bedroom garden maisonette.
0:14:06 > 0:14:10150,000? There's definitely something wrong with it.
0:14:10 > 0:14:13The question is, what?
0:14:13 > 0:14:17# It was too good to be true. #
0:14:17 > 0:14:19I know that sounds a substantial sum
0:14:19 > 0:14:24but two beds regularly go for about £250,000 around here.
0:14:25 > 0:14:29Trains get you into London Bridge in just 17 minutes so it's not like
0:14:29 > 0:14:34you're out in the sticks and you have the outside space to the side.
0:14:34 > 0:14:37Admittedly you have to share the path with the other maisonettes
0:14:37 > 0:14:40so it's not all private, but you do have your own entrance
0:14:40 > 0:14:44and that's what makes it a maisonette rather than a flat.
0:14:44 > 0:14:46Hmm. That guide price makes me wonder
0:14:46 > 0:14:49if some things really are too good to be true.
0:14:49 > 0:14:52# It was too good to be true. #
0:14:53 > 0:14:56Well, what a marvellous space.
0:14:56 > 0:14:58You know, I always go on about a nice hallway.
0:14:58 > 0:15:01I love to have natural light coming through,
0:15:01 > 0:15:02so you've got a window there,
0:15:02 > 0:15:06lovely big window in the kitchen, the kitchen will need replacing.
0:15:06 > 0:15:11It's not looking terribly good. So will the bathroom. Green! Got to go.
0:15:11 > 0:15:14You've got a nice big bedroom there, a second bedroom there,
0:15:14 > 0:15:18and into the sitting room. This really is a great space.
0:15:18 > 0:15:21You've got a fire, a little fireplace there.
0:15:21 > 0:15:24I'm not sure about all the mouldings everywhere.
0:15:24 > 0:15:25I think they might have to go.
0:15:25 > 0:15:28And I also think you might need to look at these windows,
0:15:28 > 0:15:31possibly replace them, all the leaded lights come away.
0:15:31 > 0:15:34They're single-glazed. They probably do need changing.
0:15:34 > 0:15:38But you can see there is a great space here to put your sofa there,
0:15:38 > 0:15:39one here, the TV.
0:15:39 > 0:15:43I don't know, I think this flat just works.
0:15:43 > 0:15:47But why the guide price of just 150,000?
0:15:47 > 0:15:51OK, the kitchen isn't massive, but you could possibly take some space
0:15:51 > 0:15:54from the corner cupboard that houses the boiler.
0:15:56 > 0:16:00There are signs of a possible leak on the ceiling.
0:16:00 > 0:16:03And in the main bedroom, there's a whopping hole in the ceiling
0:16:03 > 0:16:06where there's obviously been a major leak.
0:16:06 > 0:16:08That will need investigating,
0:16:08 > 0:16:12but surely there must be another explanation for this reasonable guide price.
0:16:12 > 0:16:17Now, I'm not saying you can't find a bargain at auction. Far from it.
0:16:17 > 0:16:21But this property is guided at £100,000 less than it's worth.
0:16:21 > 0:16:24A lucky find? Uh-uh.
0:16:24 > 0:16:27This maisonette has issues galore.
0:16:27 > 0:16:30First, an absentee freeholder.
0:16:30 > 0:16:34The lease isn't short at 114 years so that is a blessing,
0:16:34 > 0:16:38but an absentee freeholder means no-one will be collecting
0:16:38 > 0:16:41the service charge, probably maintaining the building,
0:16:41 > 0:16:43organising the insurance,
0:16:43 > 0:16:46and mortgage lenders, they will hate it.
0:16:46 > 0:16:52# I'm telling you baby You and my landlord's got to go. #
0:16:52 > 0:16:56And with mortgages still a struggle to obtain in many cases,
0:16:56 > 0:17:00taking on a property that will be hard to finance is risky indeed.
0:17:01 > 0:17:04At the front of the property, I've spotted a crack
0:17:04 > 0:17:07between the ground floor and first floor windows.
0:17:07 > 0:17:11I'd want to get that professionally checked out in case it's a serious
0:17:11 > 0:17:14structural problem that could have affected the guide price as well.
0:17:16 > 0:17:19We invited a local estate agent to come and have a look
0:17:19 > 0:17:22at the maisonette. What are his first impressions?
0:17:22 > 0:17:25It's a good-sized property. There's a lot of potential.
0:17:25 > 0:17:27It would appeal to an investor.
0:17:27 > 0:17:29It needs a lot of work to be done.
0:17:29 > 0:17:32But it's a nice, decent-sized property in a good location.
0:17:32 > 0:17:34Assuming there are no major structural problems,
0:17:34 > 0:17:38how much could the maisonette be worth after a full makeover?
0:17:38 > 0:17:41The property's probably worth around 250,000,
0:17:41 > 0:17:44but with the right care and attention, you'd be looking at
0:17:44 > 0:17:46270, 280,000.
0:17:46 > 0:17:49And the income potential for a buy-to-let investor?
0:17:49 > 0:17:50With regards to rental,
0:17:50 > 0:17:54you'd probably be looking to achieve around 1,300 per calendar month.
0:17:54 > 0:17:57This maisonette could go one of two ways.
0:17:57 > 0:18:01It can make somebody a fortune or it could suck up your money
0:18:01 > 0:18:04and still be unmortgageable.
0:18:04 > 0:18:07Let's find out who thought they could make it work at the auction.
0:18:07 > 0:18:11Lot 124.
0:18:11 > 0:18:14Nice two-bedroom maisonette, this, with its own garden.
0:18:14 > 0:18:18I've seen this one myself. Looking for 150,000 anywhere.
0:18:18 > 0:18:20Yep, 150.
0:18:20 > 0:18:22OK 150. 155 anywhere?
0:18:23 > 0:18:25155. 160?
0:18:25 > 0:18:28Yep. 160. 165?
0:18:29 > 0:18:31170?
0:18:31 > 0:18:33No?
0:18:33 > 0:18:34166?
0:18:34 > 0:18:38OK. 166. 167. 168?
0:18:38 > 0:18:41169. 170?
0:18:44 > 0:18:46No? Bids on my right. £169,000.
0:18:46 > 0:18:49Looking for 170,000 anywhere else?
0:18:49 > 0:18:55If not 169,000 for the first, 169,000 for the second,
0:18:55 > 0:18:59and 169,000 for the third and final time. All done.
0:18:59 > 0:19:02Sold, 169,000. Well-bought.
0:19:02 > 0:19:07That successful bidder who paid 169,000 was Shafiq.
0:19:08 > 0:19:12He's originally from Algeria, but moved to the UK to study accountancy.
0:19:12 > 0:19:14He now lives in Clapham Junction
0:19:14 > 0:19:18and owns an Italian restaurant in nearby Battersea.
0:19:18 > 0:19:20This was his first auction purchase,
0:19:20 > 0:19:23although he does own another buy-to-let property.
0:19:23 > 0:19:27I met up with him back at the maisonette to find out his plans.
0:19:27 > 0:19:29- Shafiq, congratulations.- Thank you.
0:19:29 > 0:19:31- You must be really pleased. - Yes, I am. Yeah.
0:19:31 > 0:19:34Did you feel you got yourself a bargain on auction day?
0:19:34 > 0:19:36I think, yes. Yes.
0:19:36 > 0:19:39Even if it went a lot over the guide price
0:19:39 > 0:19:41but I think it's still a bargain.
0:19:41 > 0:19:44- Did you view this flat prior to auction?- Oh, yes.
0:19:44 > 0:19:48I did a lot of research. We read all the legal documents.
0:19:48 > 0:19:52I even sent it to my solicitor just to look at it beforehand.
0:19:52 > 0:19:56I brought the builders in here on the viewing day,
0:19:56 > 0:19:58so I did all the research before.
0:19:58 > 0:20:01Something that might have put you off is the absentee freeholder.
0:20:01 > 0:20:03How do you feel about that?
0:20:03 > 0:20:04Before I bought the flat I know about it.
0:20:04 > 0:20:07Did it bother you buying this property knowing that?
0:20:07 > 0:20:09It's quite a daunting thing.
0:20:09 > 0:20:12It is because you've got two things,
0:20:12 > 0:20:14which are a bad thing and a good thing.
0:20:14 > 0:20:17The bad thing is if you've got any problems with the roof,
0:20:17 > 0:20:21with the structure, you have to get on with the neighbours downstairs.
0:20:21 > 0:20:24You have to sort it out yourself. That is something quite worrying.
0:20:24 > 0:20:26So what's the good thing?
0:20:26 > 0:20:30The good is in about two years' time if they stay absent,
0:20:30 > 0:20:34you can apply to Lambeth Council, you can show them that
0:20:34 > 0:20:38you sent letters, you tried to get in contact with them.
0:20:38 > 0:20:43If not, you have to go to court, and quite a long process.
0:20:43 > 0:20:44And you can then buy the freehold?
0:20:44 > 0:20:46You can buy the freehold from Lambeth Council.
0:20:46 > 0:20:49I don't know if I buy the whole freehold or if they give us
0:20:49 > 0:20:51just a share of the freehold.
0:20:51 > 0:20:53It's something to see in two years' time.
0:20:53 > 0:20:55I don't want to worry about that.
0:20:55 > 0:20:59I want to get this flat ready and worry about that in two years' time.
0:20:59 > 0:21:01So what are your immediate plans?
0:21:01 > 0:21:04When I first came to see the property, I wanted to buy it,
0:21:04 > 0:21:06do it up and resell it straight away.
0:21:06 > 0:21:10For the moment, I'll probably move in or get it rented ASAP,
0:21:10 > 0:21:13and sell it in about two or three years' time.
0:21:13 > 0:21:15So you don't know if you'll move in yourself
0:21:15 > 0:21:17or you're going to let it?
0:21:17 > 0:21:21I don't know really because I live in Clapham Junction at the moment.
0:21:21 > 0:21:25I like it. I like the design of it. It feels quite homey.
0:21:25 > 0:21:26So, we'll see.
0:21:26 > 0:21:29It depends on how well you do it, doesn't it!
0:21:29 > 0:21:30Probably, yes.
0:21:30 > 0:21:33# You've got the love You've got the love. #
0:21:33 > 0:21:37Falling in love with a property during the renovations.
0:21:37 > 0:21:40It's not unheard of and Shafiq's right - this is a great flat -
0:21:40 > 0:21:44and he's not uncovered any structural issues.
0:21:44 > 0:21:47The mortgage company asked for a full survey because of the crack
0:21:47 > 0:21:50at the front, but it came back with a clean bill of health,
0:21:50 > 0:21:53and despite the absent freeholder, he managed to secure finance
0:21:53 > 0:21:57from his bank, so what does he intend doing here?
0:21:57 > 0:22:00I'll probably take off every single thing what you see in here,
0:22:00 > 0:22:04double glazing, everything, get a new kitchen, new bathroom.
0:22:04 > 0:22:06Every single thing will be brand-new.
0:22:06 > 0:22:08Even if it will be for a tenant or myself,
0:22:08 > 0:22:10I will do it the same standard.
0:22:10 > 0:22:12Are you going to make any changes to the outside?
0:22:12 > 0:22:14It's something to think about as well.
0:22:14 > 0:22:19We'll probably get the consent of the council to do a carport
0:22:19 > 0:22:23in there, and we'll just clean it up, do a bit of grass.
0:22:23 > 0:22:27So ultimately you'll be able to drive almost up to your front door?
0:22:27 > 0:22:30Drop the curb and have a nice driveway?
0:22:30 > 0:22:33Correct. Yes. That's what we want to do.
0:22:33 > 0:22:37The lack of the freeholder could prove to be a sticking point.
0:22:37 > 0:22:41Shafiq has spotted the potential to go up into the loft one day as well
0:22:41 > 0:22:46to add an extra bedroom, so the issue will have to be sorted out by then.
0:22:46 > 0:22:49In the meantime, what budget has he set?
0:22:49 > 0:22:53The whole flat, I've got a budget of £10,000.
0:22:53 > 0:22:55- Yeah.- £10,000?- Yeah.
0:22:55 > 0:22:57Are you going to do a lot of the work yourself?
0:22:57 > 0:22:59No, I won't be doing anything here.
0:22:59 > 0:23:03So that's for materials, the kitchen, bathroom and labourers?
0:23:03 > 0:23:06- Yeah.- And one more thing?
0:23:06 > 0:23:08What is that?
0:23:08 > 0:23:12Before, they had a tank on the loft. They had a leak.
0:23:12 > 0:23:14We thought that was a leak on the roof.
0:23:14 > 0:23:17We came a second time with a builder, we've gone up to the loft
0:23:17 > 0:23:20and it was definitely the tank that was leaking.
0:23:20 > 0:23:22That will be replaced, new ceiling.
0:23:22 > 0:23:25All within your £10,000 budget?
0:23:25 > 0:23:27Hopefully. I'm quite positive today!
0:23:27 > 0:23:29Shafiq, good luck.
0:23:29 > 0:23:33You've got a long road ahead of you and I will be interested to see
0:23:33 > 0:23:34if you stick to that budget.
0:23:34 > 0:23:36Hopefully I will do that.
0:23:36 > 0:23:38- Well done. - Thank you very much.
0:23:38 > 0:23:42Shafiq's ten grand budget is optimistic!
0:23:42 > 0:23:44I think he'll go over that,
0:23:44 > 0:23:46especially if he decides to move in himself.
0:23:46 > 0:23:48You can find out how it all goes
0:23:48 > 0:23:52and if he's found the freeholder later on in the programme.
0:23:53 > 0:23:57Coming up, this house in Heanor, Derbyshire is no joker.
0:23:57 > 0:24:00Upstairs and the house plays its trump card.
0:24:00 > 0:24:02A bit of a surprise in store.
0:24:03 > 0:24:07We go back to southwest London, where Shafiq's bigging it up.
0:24:09 > 0:24:12I think it looks nice and airy and bigger, I think.
0:24:14 > 0:24:18But first, we're returning to Ripon to see how this property
0:24:18 > 0:24:21we first featured three years ago turned out.
0:24:27 > 0:24:29Back now to Ripon in North Yorkshire,
0:24:29 > 0:24:31where earlier in the programme,
0:24:31 > 0:24:36we showed you how in August 2009, this grade two listed former shop
0:24:36 > 0:24:42with living accommodation above was bought for 68,500 by Giles,
0:24:42 > 0:24:46a former slalom skier for England, and his wife Claire.
0:24:48 > 0:24:53The couple live in the French Alps and rent out a ski chalet.
0:24:53 > 0:24:57Claire's a painter and decorator and Giles is a qualified plasterer.
0:24:57 > 0:25:01With the help of family and friends, they planned to convert the property
0:25:01 > 0:25:02into a house.
0:25:02 > 0:25:05So what exactly are you going to do to the place?
0:25:05 > 0:25:08We're going to have the kitchen downstairs, of course.
0:25:08 > 0:25:12The shop front will be living area, lounge,
0:25:12 > 0:25:17and then upstairs, three, four double bedrooms and of course
0:25:17 > 0:25:21going into the attic, then we'll just renovate that as well
0:25:21 > 0:25:25into maybe office space/bedroom.
0:25:26 > 0:25:31When we first went back in October 2010, they'd rewired and replumbed
0:25:31 > 0:25:33the property.
0:25:33 > 0:25:37They'd also made some structural changes, opening up the ground floor
0:25:37 > 0:25:40in preparation for a new kitchen.
0:25:40 > 0:25:43They'd also had to dig up tons of rubble
0:25:43 > 0:25:47and the stone floor to get the damp course installed,
0:25:47 > 0:25:50but there was still a lot of work to do and the property was
0:25:50 > 0:25:53obviously going to need more time and money.
0:25:53 > 0:25:57I think at the moment we're up to £11,000.
0:25:59 > 0:26:02I'd like to say that we won't go over 25,000.
0:26:05 > 0:26:10It's now two years later and a whole three years since the couple began.
0:26:11 > 0:26:14The property is looking superb.
0:26:19 > 0:26:22Just look at what Giles and Claire have achieved
0:26:22 > 0:26:23at the top of the house.
0:26:25 > 0:26:28In that once derelict attic...
0:26:29 > 0:26:32..this is now a lovely master bedroom.
0:26:34 > 0:26:35With its own en-suite facility.
0:26:38 > 0:26:41Down on the middle floor, there are three further bedrooms.
0:26:45 > 0:26:49The one at the back has its own sumptuous en-suite.
0:26:53 > 0:26:58Originally there was only the one bathroom when we bought the property
0:26:58 > 0:27:01that was an en-suite into the bedroom,
0:27:01 > 0:27:06and then there was an empty room where we've actually turned it
0:27:06 > 0:27:07into the house bathroom.
0:27:09 > 0:27:14It means the house now has three bathrooms and four bedrooms.
0:27:17 > 0:27:18On the ground floor,
0:27:18 > 0:27:22the kitchen has been equipped to a very high standard.
0:27:22 > 0:27:27It's an unusually shaped room but it feels so spacious.
0:27:27 > 0:27:31The flow between all the rooms down here works really well.
0:27:31 > 0:27:34So, what did it take to transform this place?
0:27:34 > 0:27:39The major things are plastering throughout, of course decorating,
0:27:39 > 0:27:43central heating systems, and upstairs in the attic here,
0:27:43 > 0:27:46replastering, new ceilings and revealing all the beams,
0:27:46 > 0:27:48which is a nice feature.
0:27:48 > 0:27:52Which my mum and dad did while we were working in France.
0:27:52 > 0:27:54They came and stripped everything for us.
0:27:54 > 0:27:58So many people, our family and friends, have put a lot of time
0:27:58 > 0:28:00- into this with us, haven't they? - Yeah.
0:28:00 > 0:28:02We couldn't have done it without them.
0:28:05 > 0:28:08At the rear of the property, Giles and Claire have added steps
0:28:08 > 0:28:12down to the patio area, which is the only outside space.
0:28:13 > 0:28:17The couple have been careful to keep the character of this grade two
0:28:17 > 0:28:19listed property as much as possible.
0:28:21 > 0:28:24We wanted to have these features cos it is an old property.
0:28:24 > 0:28:26It was built in the 1700s.
0:28:26 > 0:28:31And especially cos it is old, we've tried to keep the character,
0:28:31 > 0:28:33cos it is so olde-worlde.
0:28:33 > 0:28:37How lovely to see that the original staircase banisters
0:28:37 > 0:28:38were retained.
0:28:38 > 0:28:40So was that a big refurbishment job?
0:28:40 > 0:28:43Well actually, it was in quite good condition.
0:28:43 > 0:28:46There was no broken spindles.
0:28:46 > 0:28:50Just really sanded them down and painted them.
0:28:50 > 0:28:55Slalom skier Giles had intended to replaster the property himself,
0:28:55 > 0:29:00but last year needed knee surgery so had to employ a plasterer instead.
0:29:00 > 0:29:04What effect did that have on their £25,000 budget?
0:29:04 > 0:29:06We actually spent in all,
0:29:06 > 0:29:10putting in the few extras we've got to finish,
0:29:10 > 0:29:13it's about 32,500.
0:29:13 > 0:29:15With the 68,500 they paid at auction,
0:29:15 > 0:29:19it takes their total investment to £101,000.
0:29:19 > 0:29:23Apart from letting out their ski chalet in France,
0:29:23 > 0:29:25Giles and Claire work together as decorators,
0:29:25 > 0:29:27so they're obviously a good team.
0:29:28 > 0:29:33We seem to bounce off each other and get ideas and things like that,
0:29:33 > 0:29:35which, we're very lucky really, aren't we?
0:29:35 > 0:29:40Don't get us wrong, we do argue, but the majority of the time,
0:29:40 > 0:29:46I think cos we enjoy the same things, we just get on with it and do it.
0:29:47 > 0:29:52The downstairs loo, the family bathroom and the attic en-suite
0:29:52 > 0:29:55need finishing off, and then the house will be ready to sell
0:29:55 > 0:29:57or possibly rent out.
0:29:58 > 0:30:02We invited two property experts to come and give their opinions
0:30:02 > 0:30:04on all the hard work done here.
0:30:04 > 0:30:08It's a nice conversion. Bright and airy. Rooms are a good size.
0:30:08 > 0:30:10Four very nice bedrooms.
0:30:10 > 0:30:13It should provide to be a fantastic family home.
0:30:13 > 0:30:16My overall impression of the property is that it's finished
0:30:16 > 0:30:17to a very high standard.
0:30:17 > 0:30:21I think that the accommodation is really a great size.
0:30:21 > 0:30:25If you buy a property of this type, it's vital that you retain
0:30:25 > 0:30:28some of the character features, and that's what they've done
0:30:28 > 0:30:30to a very good standard.
0:30:31 > 0:30:34If Giles and Claire are tempted to let the property whilst
0:30:34 > 0:30:39they're back in France, how much rental income could it generate?
0:30:39 > 0:30:41The rental market in this area is very good.
0:30:41 > 0:30:45You'd be looking at a figure in the region of £1,000 per calendar month.
0:30:45 > 0:30:51The property would achieve £950 per calendar month on the rental market.
0:30:51 > 0:30:54So a rental yield over 11%,
0:30:54 > 0:30:57but how much could Giles and Claire sell it for?
0:30:57 > 0:31:00More than the £101,000 they've invested here?
0:31:02 > 0:31:06I would value the property at £215,000.
0:31:06 > 0:31:11It is slightly less than similar size properties because of the lack
0:31:11 > 0:31:13of parking and proximity to the road.
0:31:13 > 0:31:16If I were to put this property on the market at the present time,
0:31:16 > 0:31:20I would be looking to ask for a figure in the region of £250,000.
0:31:20 > 0:31:25After three years and a lot of hard work, that's a potential profit
0:31:25 > 0:31:31of 114 to £149,000 before tax and expenses,
0:31:31 > 0:31:36but it seems this house isn't going to be for sale any time soon.
0:31:36 > 0:31:40I think to begin with we're going to rent it cos we're going back
0:31:40 > 0:31:44to France, and hopefully eventually we'll live in it.
0:31:44 > 0:31:48Yeah, absolutely. Benefit from all the hard work we've put into it.
0:31:48 > 0:31:51Yes, yeah. It'll be nice to live in it.
0:31:55 > 0:32:00Today I'm in Heanor in Derbyshire, a small hilltop market town
0:32:00 > 0:32:02in the southern region of the Pennines.
0:32:02 > 0:32:05It's about ten miles from Nottingham and Derby,
0:32:05 > 0:32:10so both these East Midlands cities are within easy reach.
0:32:10 > 0:32:13Not far from the market square is the property I'm here to see.
0:32:13 > 0:32:15No surprises it's a terrace.
0:32:15 > 0:32:20The guide price was £50,000 plus, but actually before I even go in,
0:32:20 > 0:32:22look at the outside, look at the bricks.
0:32:22 > 0:32:27They really are giving a clue to some potential problems
0:32:27 > 0:32:28to say the least.
0:32:28 > 0:32:31They've been replaced in various places,
0:32:31 > 0:32:32they're all out of line.
0:32:32 > 0:32:37They should be nice, straight joints all, like, parallel. They're not.
0:32:37 > 0:32:39That could be quite serious.
0:32:39 > 0:32:44The word in my mind is of course "subsidence".
0:32:45 > 0:32:48# We've got to patch it up baby Before we fall apart at the seams. #
0:32:48 > 0:32:53Whether this house has been patched up successfully remains to be seen.
0:32:53 > 0:32:56The roof looks fairly new and there are some lovely features,
0:32:56 > 0:32:59but the guttering looks like it needs more than a patch-up job.
0:32:59 > 0:33:03# We can patch it up baby
0:33:03 > 0:33:05# We can patch it up baby. #
0:33:06 > 0:33:09Well, in through the front door.
0:33:09 > 0:33:14You don't have to go too far before you see some signs inside as well.
0:33:14 > 0:33:16Look at that door frame.
0:33:16 > 0:33:18See how it's all off at a strange angle at the top.
0:33:18 > 0:33:21The big question is, is it historical or not?
0:33:21 > 0:33:23The only way to do that is to monitor it
0:33:23 > 0:33:26with special devices that monitor movement.
0:33:26 > 0:33:28My guess is that it is historical so we'll try
0:33:28 > 0:33:30and brush over that for now.
0:33:30 > 0:33:32Front sitting room here.
0:33:32 > 0:33:36That is a fire breast without a fire so I'd like to get that sorted.
0:33:36 > 0:33:39Stairs, really useful under-stairs cupboard.
0:33:39 > 0:33:43That could almost be a little study or maybe a downstairs loo.
0:33:43 > 0:33:45Rear sitting room. You've got a fire in here.
0:33:45 > 0:33:49Very old, very dated. But it is what it is.
0:33:49 > 0:33:52Traditionally the house would have ended at this point,
0:33:52 > 0:33:55but somebody has done what a lot of people do and built an extension on.
0:33:55 > 0:33:58This is where the kitchen is, and through the kitchen to
0:33:58 > 0:34:01the bathroom - a very traditional layout.
0:34:01 > 0:34:03The kitchen itself is not a bad size.
0:34:03 > 0:34:06Clearly needs complete refurbishment.
0:34:06 > 0:34:09But this is all superficial. Before you start any of that,
0:34:09 > 0:34:12you've got to check that the house is structurally OK.
0:34:12 > 0:34:16Before I spent any money on this house, I'd want to be reassured
0:34:16 > 0:34:19by an expert that it's not going to fall down.
0:34:19 > 0:34:21# I'm falling
0:34:23 > 0:34:27# Falling down. #
0:34:27 > 0:34:29But that small matter aside,
0:34:29 > 0:34:33there is work to do to this terrace to bring it up to scratch.
0:34:33 > 0:34:37The bathroom needs a total refit and the kitchen is a galley shape.
0:34:37 > 0:34:41I guess you'd have to work with that unless you went the whole way
0:34:41 > 0:34:44and extended out into the side return.
0:34:44 > 0:34:46On the plus side, there's that new roof,
0:34:46 > 0:34:48new windows and central heating.
0:34:48 > 0:34:52So it's beginning to look as though there are some positive points
0:34:52 > 0:34:53to this place.
0:34:53 > 0:34:56Upstairs, the house plays its trump card.
0:34:56 > 0:34:58A bit of a surprise in store.
0:34:58 > 0:35:01Double bedroom there, single bedroom there,
0:35:01 > 0:35:05but then we've got this, which I know is not exactly that surprising,
0:35:05 > 0:35:08it's basically a landing, but in this kind of property
0:35:08 > 0:35:12I wouldn't have expected it and it gives a lovely open feel
0:35:12 > 0:35:15to the centre of the house - and there's more.
0:35:15 > 0:35:20It's the third bedroom and it's a really nice size.
0:35:20 > 0:35:25A cupboard here containing a boiler, that looks terribly old and dated.
0:35:25 > 0:35:29So you'll probably need to factor in a replacement of that at some point.
0:35:29 > 0:35:32But if you can just sort out whether or not that subsidence is really
0:35:32 > 0:35:36an issue, then you've got the makings of a really nice house here.
0:35:36 > 0:35:39This was clearly a much loved home
0:35:39 > 0:35:42and hasn't changed hands much over the years.
0:35:42 > 0:35:46This means there are some features remaining which do lend it charm.
0:35:46 > 0:35:48The floorboards could sand up very nicely
0:35:48 > 0:35:52and the original doors could be lovely if restored.
0:35:53 > 0:35:57However, there are some remnants of the past that have to go.
0:35:57 > 0:35:59Polystyrene tiles.
0:35:59 > 0:36:02Not only are they rather ugly, they can sometimes present
0:36:02 > 0:36:04a fire risk.
0:36:04 > 0:36:07Out to the rear of the property, and you can see this extension
0:36:07 > 0:36:10that the kitchen and the bathroom have been built in.
0:36:10 > 0:36:15It's quite large although I question what state of repair it's in.
0:36:15 > 0:36:19Simple things, like the guttering here is coming off
0:36:19 > 0:36:23and this rendering on the outside could be leading to a few
0:36:23 > 0:36:26damp issues, but a real positive thing out here - this garden.
0:36:26 > 0:36:29It goes all the way back to that lilac tree in the distance.
0:36:29 > 0:36:33A really nice sized space and not something you would have expected.
0:36:34 > 0:36:37The challenge here is to bring this house up to date
0:36:37 > 0:36:40and keep some of its more charming features.
0:36:42 > 0:36:44We invited the auctioneer who sold it to come
0:36:44 > 0:36:47and give his opinion on its potential.
0:36:47 > 0:36:51This is a larger terraced house than you would probably normally find.
0:36:51 > 0:36:52It's in quite good condition.
0:36:52 > 0:36:55We've got new windows, a modern central heating system.
0:36:55 > 0:36:57We've got a new roof covering on it already.
0:36:57 > 0:37:00So we're looking at internals really.
0:37:00 > 0:37:02It's decorating, taking out old fireplaces,
0:37:02 > 0:37:03a lot of superficial stuff.
0:37:03 > 0:37:06Given the generous proportions here, what does he think
0:37:06 > 0:37:09the house could be worth once renovated?
0:37:09 > 0:37:12I think once renovated on the current market, you could probably
0:37:12 > 0:37:16enhance its value up to about £90,000.
0:37:16 > 0:37:22This would have a rental value of about £450-£475 a calendar month.
0:37:22 > 0:37:26From a few initial concerns, this house has redeemed itself,
0:37:26 > 0:37:29and I think it could make quite a good investment.
0:37:29 > 0:37:31But you'd definitely need to have it checked out by somebody
0:37:31 > 0:37:33who knows what they're talking about.
0:37:33 > 0:37:36Let's see who went for it when it went under their hammer.
0:37:36 > 0:37:38Lot 37.
0:37:38 > 0:37:41It's a three-bedroom terraced house with a new roof covering,
0:37:41 > 0:37:43gas central heating,
0:37:43 > 0:37:46double glazed, probably a tad old-fashioned inside
0:37:46 > 0:37:49but doesn't need loads of money to upgrade and renovate it.
0:37:49 > 0:37:52Guide is 50 plus. 48 to start me.
0:37:52 > 0:37:5348. 45?
0:37:53 > 0:37:5545,000. Thank you.
0:37:55 > 0:37:58At 45,000, opening bid.
0:37:58 > 0:38:0145, 46? 46. 47?
0:38:01 > 0:38:0448 is bid. 49.
0:38:04 > 0:38:06'There was a lot of interest on auction day.
0:38:06 > 0:38:08'We rejoin the bidding at £60,000.'
0:38:08 > 0:38:11At 60. 60,000.
0:38:11 > 0:38:1260,500?
0:38:14 > 0:38:1560,500.
0:38:15 > 0:38:1761? 61.
0:38:17 > 0:38:2061? It's hard work, isn't it?
0:38:20 > 0:38:2361,500. You want to be here!
0:38:23 > 0:38:2562? 62.
0:38:25 > 0:38:28500. 63.
0:38:28 > 0:38:29500.
0:38:29 > 0:38:31It's always better with a smile on your face.
0:38:31 > 0:38:3463,500. 64.
0:38:34 > 0:38:3564,500.
0:38:35 > 0:38:3765.
0:38:37 > 0:38:39Throw the towel in?
0:38:39 > 0:38:44At 65,000. Once, twice, third time.
0:38:44 > 0:38:46It's yours, sir. Well-fought. 65,000.
0:38:46 > 0:38:50That successful bid of 65,000 was made by Bob, who was at the auction
0:38:50 > 0:38:52with his daughter, Harriet.
0:38:52 > 0:38:54They live locally and Harriet works in a jeweller's shop,
0:38:54 > 0:38:56while Bob's a chiropodist.
0:38:56 > 0:39:00# Tonight I gotta cut loose Footloose
0:39:00 > 0:39:02# Kick off your Sunday shoes. #
0:39:04 > 0:39:08To discover if they plan to RING the changes or TOE the line
0:39:08 > 0:39:12with this house, I met them both back at their new purchase.
0:39:13 > 0:39:16Bob, Harriet, great to meet you both. Congratulations.
0:39:16 > 0:39:18Thank you.
0:39:18 > 0:39:20Tell me why you wanted to buy this place.
0:39:20 > 0:39:23Harriet's saved up a little bit of money from work.
0:39:23 > 0:39:26She still lives at home. So she wants to buy some property.
0:39:26 > 0:39:30- She's not quite sure whether she wants to move out yet or not.- OK.
0:39:30 > 0:39:32So we thought we'd buy a property together,
0:39:32 > 0:39:35- modernise it and see how she felt. - Right.
0:39:35 > 0:39:37You're currently living at home.
0:39:37 > 0:39:40Any temptation to maybe do this up and live here?
0:39:40 > 0:39:43No, I thought about it to start off with
0:39:43 > 0:39:47but it's a good idea to do it up and sell it on, really.
0:39:47 > 0:39:49What do you do when you're not doing this?
0:39:49 > 0:39:51I'm a private chiropodist.
0:39:51 > 0:39:52Great! What do you do?
0:39:52 > 0:39:55I work in a jewellery shop part-time
0:39:55 > 0:39:58so I've got plenty of time in my spare time.
0:39:58 > 0:40:00Why did you choose this particular house?
0:40:00 > 0:40:04It's very close to where we live. We live about five minutes away.
0:40:04 > 0:40:07I can ride up on the bike. We wanted one fairly close.
0:40:07 > 0:40:12I'll do most of the work myself and Harriet will do some decorating.
0:40:12 > 0:40:17An ideal location, even if this is a major job to take on.
0:40:19 > 0:40:21# Oh Harriet
0:40:21 > 0:40:25# Why did I say I would do this for Harriet?
0:40:25 > 0:40:27# Harriet. #
0:40:28 > 0:40:32Well, Bob seems more than happy to do this for 21-year-old Harriet.
0:40:32 > 0:40:36He may spend his days toiling over toes, but he does already have
0:40:36 > 0:40:38a foothold in DIY skills!
0:40:38 > 0:40:42He's renovated his own family home, including plumbing, and converting
0:40:42 > 0:40:45a garage into living space. So I'm keen to find out
0:40:45 > 0:40:47what he and his daughter Harriet
0:40:47 > 0:40:49plan to do with this investment property.
0:40:49 > 0:40:52We're going to put in a new kitchen.
0:40:52 > 0:40:55We're probably going to put the bathroom upstairs
0:40:55 > 0:40:58- and possibly leave the one downstairs as well.- At the expense of a bedroom?
0:40:58 > 0:41:01- No.- So how are you going to achieve that?
0:41:01 > 0:41:04Well, the master bedroom above where we are now is quite large.
0:41:04 > 0:41:08And we think we can get a reasonably sized bathroom by dividing that up.
0:41:08 > 0:41:12There is a way to do it by using the landing as a bathroom, but we'd have
0:41:12 > 0:41:16to bring the stairs up from in here and lose a bit of the living area.
0:41:16 > 0:41:19Although there are two living rooms, so that is a possibility.
0:41:19 > 0:41:21But that would be more expensive.
0:41:21 > 0:41:24It sounds like Bob has thought this through, which is great.
0:41:24 > 0:41:27However, installing a bathroom involves a great deal
0:41:27 > 0:41:29of construction and pipe work.
0:41:29 > 0:41:33Even if Bob does that himself, it could eat into any profit.
0:41:34 > 0:41:36What's the budget for the work?
0:41:36 > 0:41:38- I think I'd be able to do most of it for about five.- Right.
0:41:38 > 0:41:40- If I do it myself.- Are you going to get involved, Harriet?
0:41:40 > 0:41:43Yes, I'm going to be doing some of the decorating.
0:41:43 > 0:41:46We're going to do it quite plain, really, aren't we? Light colours.
0:41:46 > 0:41:49And are you going to be doing it on a daily basis?
0:41:49 > 0:41:53I'm available two or three days a week and Harriet...
0:41:53 > 0:41:55Yeah, a couple of days off a week.
0:41:55 > 0:41:59- So we'll manage between us.- So with that in mind, what's the timescale?
0:41:59 > 0:42:03- We think six months should do it. - OK. Well, listen, congratulations.
0:42:03 > 0:42:05- Thank you.- Good luck with it. - Thanks very much, Martin.
0:42:05 > 0:42:08I look forward to seeing how you get on.
0:42:09 > 0:42:13Well, I was going to say, chiropodist Bob and daughter Harriet
0:42:13 > 0:42:16dipping a TOE into the world of property investment!
0:42:16 > 0:42:19But I decided it was a bit CORN-y!
0:42:19 > 0:42:20HE WINCES
0:42:20 > 0:42:22How will they get on?
0:42:22 > 0:42:24You can find out later in the show!
0:42:27 > 0:42:31Doing up property can be time-consuming and very expensive.
0:42:31 > 0:42:36So have our new owners managed to stick to their timescales and budgets?
0:42:36 > 0:42:37Let's find out.
0:42:37 > 0:42:42# We're gonna rock down to Electric Avenue... #
0:42:42 > 0:42:45Brixton in southwest London is a sought-after area
0:42:45 > 0:42:48and property prices reflect that.
0:42:48 > 0:42:52Neighbouring Tulse Hill is slightly more affordable.
0:42:52 > 0:42:55Even so, two-bed flats regularly achieve over £200,000.
0:42:55 > 0:42:59So when this two-bedroom first floor maisonette with a garden
0:42:59 > 0:43:04in Tulse Hill went to auction, guided at £150,000,
0:43:04 > 0:43:07well, it seemed a bargain.
0:43:07 > 0:43:10But the property had an absentee freeholder and a crack
0:43:10 > 0:43:14on the front wall that could explain that relatively low guide price.
0:43:15 > 0:43:17Shafiq, who lives in Clapham Junction,
0:43:17 > 0:43:22and owns a restaurant, bought it for £169,000.
0:43:22 > 0:43:24His mortgage company had asked for a full survey
0:43:24 > 0:43:26because of the crack at the front.
0:43:26 > 0:43:30But it came back with a satisfactory report.
0:43:30 > 0:43:33He also got finance, despite the freeholder issues.
0:43:33 > 0:43:37But he wasn't sure what he wanted to do with the place.
0:43:37 > 0:43:41When I first came to see the property it was a buy to resell.
0:43:41 > 0:43:45For the moment, I'll probably move in or get it rented ASAP.
0:43:45 > 0:43:48And sell in about two or three years' time.
0:43:48 > 0:43:50So you don't know if you're going to move in yourself,
0:43:50 > 0:43:53- or you're going to let it? - I don't know, really.
0:43:53 > 0:43:55I live in Clapham Junction at the moment.
0:43:55 > 0:43:59I like it, you know, I like the design of it. It feels quite homey.
0:43:59 > 0:44:03- So, we'll see.- It depends on how well you do it, doesn't it?!
0:44:03 > 0:44:05Probably, yes!
0:44:05 > 0:44:08I thought he'd set a pretty tight budget of 10,000 to change
0:44:08 > 0:44:11the bathroom and kitchen and sort the major leak
0:44:11 > 0:44:14that had brought down the ceiling in the bedroom.
0:44:14 > 0:44:16So, there was plenty to do.
0:44:17 > 0:44:19Six weeks later,
0:44:19 > 0:44:22we've come back to find out what Shafiq's team have achieved.
0:44:24 > 0:44:27From the front, you can see the windows have been replaced.
0:44:29 > 0:44:32And inside, it looks like this maisonette has certainly had
0:44:32 > 0:44:34some money spent on it.
0:44:37 > 0:44:40The absentee freeholder hasn't been tracked down.
0:44:40 > 0:44:42They don't know what they're missing!
0:44:44 > 0:44:47Originally, we wanted to put two units in here.
0:44:47 > 0:44:51But we found out that was too much so we kept it quite nice and tidy
0:44:51 > 0:44:53and simple. We put tiles around.
0:44:53 > 0:44:57They originally were all black tiles, but we did two lines of white.
0:44:57 > 0:44:59I love the worktop, which is proper wood.
0:44:59 > 0:45:01We've got a breakfast bar in here.
0:45:01 > 0:45:05All the appliances, the washing machine and dishwasher,
0:45:05 > 0:45:08which are all in here. The boiler is all covered up.
0:45:08 > 0:45:13Originally, we had a door here, but I think it looks nice and airy
0:45:13 > 0:45:14and bigger, I think.
0:45:16 > 0:45:18Opting for the tried and trusted
0:45:18 > 0:45:21neutral colour scheme has again come up trumps here.
0:45:23 > 0:45:27And losing that faux-Victoriana in the living room was a good move!
0:45:30 > 0:45:34Shafiq's had new windows installed throughout the maisonette.
0:45:34 > 0:45:36I wonder if his builder hit any problems with that
0:45:36 > 0:45:38crack on the front wall?
0:45:38 > 0:45:43Not really. I mean, the front cracks, it wasn't a major problem.
0:45:43 > 0:45:46The people downstairs, when they did the double glazing,
0:45:46 > 0:45:51they didn't change the beam on the top of the double glazing.
0:45:51 > 0:45:55So that's why it dropped a little bit. But it's all been fixed now.
0:45:55 > 0:45:58It's all wind and water-tight on the outside,
0:45:58 > 0:46:01but the real downpour had been on the inside here.
0:46:01 > 0:46:04# You can put me away for a rainy day
0:46:04 > 0:46:08# But the clouds just burst on you! #
0:46:08 > 0:46:11The leak that had caused the ceiling to come down has been resolved.
0:46:13 > 0:46:17The leaks, really, they were caused by the tank upstairs.
0:46:17 > 0:46:19This is a very old system that they used to use.
0:46:19 > 0:46:22But now we are connected in directly to the mains water.
0:46:24 > 0:46:28Shafiq's choice of wood flooring and oatmeal carpets is good and opting
0:46:28 > 0:46:33for stylish sockets and switches always improves the overall look.
0:46:33 > 0:46:36Come on, Shafiq, I want to know, did you do this place up
0:46:36 > 0:46:39to this level with an eye on it for yourself?
0:46:39 > 0:46:42Well, the plan is now, certainly, is I will be moving in.
0:46:42 > 0:46:46I like the finish of it, so I fell in love with this.
0:46:46 > 0:46:49I will definitely be moving in.
0:46:49 > 0:46:51Knowing he was going to move in,
0:46:51 > 0:46:54Shafiq upped the spec of the bathroom and kitchen.
0:46:56 > 0:46:58Outside, a shed is about to go up
0:46:58 > 0:47:00and a parking place has been prepared.
0:47:00 > 0:47:02So, he'll have off-street parking.
0:47:04 > 0:47:08Opting to move in has certainly made an impact on Shafiq's choices.
0:47:08 > 0:47:11But what I'm really itching to know is, what happened
0:47:11 > 0:47:17to that £10,000 budget, which I thought was a tad on the optimistic side?
0:47:17 > 0:47:20And that was when it wasn't even a personal project!
0:47:21 > 0:47:23Originally, we wanted to spend about £10,000.
0:47:23 > 0:47:27But that wasn't including the garden, it didn't include the double glazing.
0:47:27 > 0:47:32Now we are about £18,000 spent. But that's absolutely everything.
0:47:32 > 0:47:35With the £169,000 he paid at auction,
0:47:35 > 0:47:40that takes the total investment here to £187,000.
0:47:40 > 0:47:44Time to hear what two local estate agents think of the finished
0:47:44 > 0:47:47maisonette and its potential for selling or letting.
0:47:47 > 0:47:51It's very nicely done. As you walk in you get a nice feel for it.
0:47:51 > 0:47:53It's a very modern, contemporary finish.
0:47:53 > 0:47:55You've got nice hardwood floors, you've got a nice, modern,
0:47:55 > 0:47:57high-gloss white kitchen
0:47:57 > 0:47:59and all those modern things that people like at the moment.
0:47:59 > 0:48:02He's brought it right up to that spec, which is great.
0:48:02 > 0:48:04My first impressions of the property are that it's a very bright,
0:48:04 > 0:48:06good space.
0:48:06 > 0:48:09The kitchen is of a contemporary style with white fitted units,
0:48:09 > 0:48:12which is complemented by the oak wood flooring
0:48:12 > 0:48:14and the integrated appliances.
0:48:14 > 0:48:17The bathroom is very, very contemporary. Very, very modern.
0:48:17 > 0:48:21Very nicely done. Somebody obviously likes their interior design!
0:48:21 > 0:48:24Definitely! That's why he's moving in!
0:48:24 > 0:48:27But how much rent could the property generate
0:48:27 > 0:48:30if Shafiq had decided to let it?
0:48:30 > 0:48:33If the property was to be rented, I believe the property
0:48:33 > 0:48:36would be worth in the region of £1,200 per calendar month.
0:48:36 > 0:48:38If I was looking to rent this property,
0:48:38 > 0:48:40I think rental-wise, where it is located,
0:48:40 > 0:48:44it will achieve somewhere around the £1,400 per calendar month mark.
0:48:44 > 0:48:47Goodness! Shafiq might have second thoughts!
0:48:47 > 0:48:52That's a potential rental yield of between about seven and nine percent.
0:48:52 > 0:48:55I think 1,400 is a little bit high.
0:48:55 > 0:48:591,200, I think you would achieve something in the middle.
0:48:59 > 0:49:00In a couple of years,
0:49:00 > 0:49:03if the absentee freeholder hasn't been tracked down,
0:49:03 > 0:49:07Shafiq might be able to obtain all or part of the freehold himself.
0:49:07 > 0:49:09But with the freeholder still missing,
0:49:09 > 0:49:12how much could the maisonette now be worth?
0:49:12 > 0:49:16More than the £187,000 he invested here?
0:49:16 > 0:49:19Once the absentee freehold situation has been dealt with,
0:49:19 > 0:49:22I believe the property would be worth £250,000.
0:49:22 > 0:49:24If I was putting this up for sale,
0:49:24 > 0:49:30I would expect to achieve somewhere between £235,000 and £250,000.
0:49:30 > 0:49:32Limited only because of the stamp duty.
0:49:32 > 0:49:37So a potential profit of £48,000-£63,000,
0:49:37 > 0:49:39before tax and expenses.
0:49:39 > 0:49:43After just six weeks work, that's pretty impressive!
0:49:43 > 0:49:45What does Shafiq think of that?
0:49:45 > 0:49:46250, I would be happy with it.
0:49:46 > 0:49:49But for now, as I said, I'll keep it for a year or two,
0:49:49 > 0:49:50I'll be living in it here.
0:49:50 > 0:49:53And in a year or two, we'll see what the valuation will be.
0:49:57 > 0:50:01Back now to the hilltop market town of Heanor in Derbyshire.
0:50:01 > 0:50:02Earlier in the programme,
0:50:02 > 0:50:05local chiropodist Bob had bought this three-bedroom
0:50:05 > 0:50:08mid-terrace with some additional investment from his daughter,
0:50:08 > 0:50:10Harriet, who works in a jeweller's shop.
0:50:12 > 0:50:15I was concerned about the cracks in the uneven brickwork
0:50:15 > 0:50:19and hoped they were just cosmetic, not structural.
0:50:20 > 0:50:24It had a classic terraced house layout with the bathroom
0:50:24 > 0:50:26downstairs behind the kitchen.
0:50:26 > 0:50:28But Bob had a plan.
0:50:28 > 0:50:30We are probably going to put the bathroom upstairs
0:50:30 > 0:50:33and possibly leave the one downstairs as well.
0:50:33 > 0:50:35So how are you going to achieve that?
0:50:35 > 0:50:38Well, the master bedroom is quite large and we think we can get
0:50:38 > 0:50:41a reasonably sized bathroom by dividing that up a little bit.
0:50:41 > 0:50:42Are you going to get involved, Harriet?
0:50:42 > 0:50:45Yes, I'm going to be doing some of the decorating.
0:50:45 > 0:50:49They weren't sure whether to sell or let the house.
0:50:49 > 0:50:53Six months on, bang on their timescale, we've come back.
0:50:54 > 0:50:56The uneven brickwork has been straightened
0:50:56 > 0:50:59and the place has been painted and the guttering fixed.
0:51:02 > 0:51:05Inside, just look at the kitchen!
0:51:07 > 0:51:08What a stunning change!
0:51:09 > 0:51:12Galley style, as I'd hoped for, with units
0:51:12 > 0:51:14and appliances down both sides.
0:51:14 > 0:51:18It looks so much bigger with those white tiles.
0:51:20 > 0:51:24Behind the kitchen, the bathroom has remained as well.
0:51:25 > 0:51:29With a bath instead of the shower and tasteful new tiles.
0:51:30 > 0:51:34But now it's not the only bathroom in the house.
0:51:34 > 0:51:37One of the major decisions we had to take in renovating this house
0:51:37 > 0:51:39was what to do about the bathrooms.
0:51:39 > 0:51:44So we decided to take the trouble and expense to create this shower room.
0:51:44 > 0:51:48We've taken a small area off the main bedroom, but it's a small corner,
0:51:48 > 0:51:51and we managed to fit all the utilities into there.
0:51:51 > 0:51:55We managed to create this shower room for only £1,250 out of the total
0:51:55 > 0:52:00budget of £6,500. So I think it was worthwhile in the end.
0:52:00 > 0:52:04It takes their total investment here to £71,500.
0:52:06 > 0:52:09Although Bob's sacrificed space from the front bedroom,
0:52:09 > 0:52:12I reckon you could just about squeeze in a double bed.
0:52:14 > 0:52:17And there are still two other bedrooms.
0:52:19 > 0:52:21Harriet's neutral colours are working well.
0:52:23 > 0:52:27Downstairs, laminate flooring links the two reception rooms.
0:52:29 > 0:52:34Losing the fireplace from the former dining room was a good call.
0:52:34 > 0:52:37I'm very pleased with the result. A lot of hard work went into it.
0:52:37 > 0:52:40So now that it's finished, I'm very happy.
0:52:40 > 0:52:42OK, can't resist it!
0:52:42 > 0:52:46Bob's been the builder! But what role did Harriet play?
0:52:46 > 0:52:50I did more of the decorating, stripping the wallpaper,
0:52:50 > 0:52:55- painting, and then you did... - Everything else!- Yes!
0:52:55 > 0:52:59And they gained some more accommodation downstairs, as well.
0:52:59 > 0:53:02There was a little pantry downstairs with the gas
0:53:02 > 0:53:04and electricity meters in there.
0:53:04 > 0:53:08We out gutted that out and made it into a little study or computer room.
0:53:10 > 0:53:13Bob had the property re-plastered throughout.
0:53:13 > 0:53:16Fortunately, there were no damp issues,
0:53:16 > 0:53:19as it had been properly damp-proofed some time ago.
0:53:19 > 0:53:22What about my concerns about possible subsidence?
0:53:23 > 0:53:27The house had moved, but as the building control inspector says,
0:53:27 > 0:53:30every house in Heanor has moved at some point because of the mining.
0:53:30 > 0:53:33There is no movement at all now. The house is fine.
0:53:33 > 0:53:35There are no structural issues.
0:53:35 > 0:53:38The little bit at the front, above the front door,
0:53:38 > 0:53:40was just an old bodged job and that's perfectly straight now.
0:53:40 > 0:53:43So no structural issues.
0:53:43 > 0:53:45Out the back looks so much smarter
0:53:45 > 0:53:48now that the kitchen extension wall has been painted
0:53:48 > 0:53:50and the old cobbles removed.
0:53:50 > 0:53:54Bob's an expert DIYer. He rewired the house himself
0:53:54 > 0:53:59and then got a qualified electrician to check and certify the work.
0:53:59 > 0:54:03Now the work's all finished, have they decided on its future?
0:54:03 > 0:54:06Is it going to be an investment, or are there other possibilities?
0:54:06 > 0:54:09Depending on the valuations, depending on whether we decide
0:54:09 > 0:54:14to sell it or rent it, or there is a possibility that I could move in.
0:54:15 > 0:54:20To discover if the house is now worth more than the £71,500 invested
0:54:20 > 0:54:23here, we invited two property experts to come and look around.
0:54:23 > 0:54:29What does the auctioneer who sold it and viewed it originally think now?
0:54:29 > 0:54:32You know, when you come into a place where you saw it as it was
0:54:32 > 0:54:35and then you see it transformed, you think, wow, it's clean,
0:54:35 > 0:54:39it's tidy, it's well-fitted. And yes, I'm impressed.
0:54:39 > 0:54:41My overall impression of the property is they've done
0:54:41 > 0:54:45a very good job. It's modern, contemporary,
0:54:45 > 0:54:48and the fact that the garden's been finished as well, which is great.
0:54:48 > 0:54:50I think the introduction of a toilet
0:54:50 > 0:54:52and shower room upstairs is actually a very good move.
0:54:52 > 0:54:55For some buyers, they might say, well,
0:54:55 > 0:54:58I'd rather have had a nice-sized double bedroom.
0:54:58 > 0:55:01But other people might say, actually, it doesn't really
0:55:01 > 0:55:04bother me, I'm quite happy because it has got the upstairs facility.
0:55:04 > 0:55:06It's great there's a shower room in there,
0:55:06 > 0:55:10but unfortunately the space is less than it was.
0:55:10 > 0:55:13And that might cause people to look at it and think,
0:55:13 > 0:55:16do I get a double bed in there, do I not get a double bed in there?
0:55:16 > 0:55:19I wonder if the rental valuations will convince Bob
0:55:19 > 0:55:21and Harriet to get a tenant in here?
0:55:21 > 0:55:24On the rental market, I would expect this property
0:55:24 > 0:55:29to achieve between £450 and £475 per calendar month.
0:55:29 > 0:55:31It's at least £450 per calendar month.
0:55:31 > 0:55:35I think you actually might get £475 for it.
0:55:35 > 0:55:39So, a yield of 7.5 percent if they decide to let.
0:55:39 > 0:55:40What about selling it?
0:55:40 > 0:55:44Could it get more than the £71,500 they have invested here?
0:55:44 > 0:55:48I would market this property between £85,000 and £90,000,
0:55:48 > 0:55:53hoping to achieve around the sort of £87-£88,000 mark.
0:55:53 > 0:55:56I think this property would go on the market at a price
0:55:56 > 0:55:59of between £90,000 and £95,000.
0:55:59 > 0:56:02I would expect to achieve £90,000 for it.
0:56:03 > 0:56:08A gross profit range of between £13,500 and £23,500 then,
0:56:08 > 0:56:12based on that very top estimate of 95,000.
0:56:12 > 0:56:16Those profits don't take into account tax and expenses, of course.
0:56:16 > 0:56:20So now Bob and Harriet know the figures, what's their verdict?
0:56:21 > 0:56:25I think we should try and put it for sale first
0:56:25 > 0:56:29and then see what happens. If not, consider me moving in.
0:56:29 > 0:56:32Harriet invested some of her own savings in the property and
0:56:32 > 0:56:36will get a corresponding percentage of any profit if they sell.
0:56:36 > 0:56:40I wonder if it could be the start of a family developing business?
0:56:40 > 0:56:43Well, we might do it again! If we can find something suitable,
0:56:43 > 0:56:47we'd definitely consider doing another one.
0:56:47 > 0:56:51- Painter and decorator!- Yes! - Handyman! Sorted.
0:56:53 > 0:56:55We'll have more interesting properties for you to see
0:56:55 > 0:56:56next time.
0:56:56 > 0:56:59So make sure you join us then for more Homes Under The Hammer.
0:56:59 > 0:57:01- Goodbye.- Goodbye.
0:57:08 > 0:57:10Subtitles by Red Bee Media Ltd