0:00:02 > 0:00:06Hello. It's always really exciting opening up the auction catalogue
0:00:06 > 0:00:11and just seeing those properties just lined up for inspection.
0:00:11 > 0:00:16From bungalows to barns to beautiful cottages, they are all waiting for your bid.
0:00:16 > 0:00:21You can usually find what you're looking for when you buy under the hammer.
0:00:44 > 0:00:50These turbulent financial times don't mean you always have to put your dreams on hold.
0:00:50 > 0:00:56No, when "budget" and "save" are the watchwords, auctions could be just the place
0:00:56 > 0:01:03- to find the property you're looking for.- So let's see who's bagged a bargain on today's show.
0:01:03 > 0:01:08Whoever tackles this semi in Eccles has a mighty big job on their hands.
0:01:08 > 0:01:12It's a right old mess. It's more like a builder's yard.
0:01:13 > 0:01:19This land in Kent has plans for a three-bedroom property, which in summer becomes four bedrooms.
0:01:19 > 0:01:22Confused? Yes, I am.
0:01:23 > 0:01:27I like impressive frontage and this Stoke house certainly delivers.
0:01:27 > 0:01:33In terms of front gardens, it doesn't get much more manicured than this.
0:01:34 > 0:01:39All these properties have been sold at auction. We'll find out who bought them and what they paid
0:01:39 > 0:01:42when they went under the hammer.
0:01:45 > 0:01:49Today I'm in the town of Eccles in Greater Manchester.
0:01:50 > 0:01:56Home, of course, to the famous Eccles cake, the town is a mixture of old and new.
0:01:56 > 0:02:01And the auction lot is just five minutes' drive from the town centre.
0:02:01 > 0:02:07The property I'm here to see is on this estate of largely ex-local authority houses.
0:02:07 > 0:02:13They seem to be pretty well maintained, which is good news. Very close to Salford Royal Hospital
0:02:13 > 0:02:19so potential for rental and this is it - a three-bedroom, semi-detached. Guide price 60 grand.
0:02:19 > 0:02:22Let's take a look.
0:02:22 > 0:02:29'As it's on a corner plot, it has the advantage of land front and back and also to the side.
0:02:29 > 0:02:32'A promising start.'
0:02:32 > 0:02:36So what have we got? Oh, nice, big entrance. That's always good to see.
0:02:36 > 0:02:42Somewhere to hang your coats, put your bikes, whatever. I do like ex-local authority houses.
0:02:42 > 0:02:48They're solid. All the walls made of stone or brick. You can do a lot with these properties.
0:02:48 > 0:02:52Also, the rooms are generally well-proportioned, good sizes.
0:02:52 > 0:02:57Your front living room area with the bay window. Then the kitchen.
0:02:57 > 0:03:04Yeah, a decent enough size. You might want to consider taking out this wall
0:03:04 > 0:03:11and extending into the dining room area. Or just keep it as it is. It's a good, solid house.
0:03:13 > 0:03:17'It seems to have all the right rooms in all the right places.
0:03:17 > 0:03:23'There is quite a lot to do, though. The kitchen definitely needs replacing.'
0:03:23 > 0:03:28So upstairs, a nice, big landing here.
0:03:28 > 0:03:35Bathroom and toilet where you'd hope it would be. Needs a bit of a tidy up, but it's a decent size
0:03:35 > 0:03:39and would certainly add a bit of sparkle.
0:03:39 > 0:03:43And then three bedrooms. Two good-sized doubles and a single.
0:03:43 > 0:03:49So, yeah, what can you say? Nothing too untoward. It's all good news, really.
0:03:49 > 0:03:51# It's all good... #
0:03:53 > 0:03:56'So far, it's a perfect DIY project.
0:03:56 > 0:04:02'It would just be a case of rolling up your sleeves and scraping, rubbing, painting and fixing.
0:04:02 > 0:04:09'New flooring would be in order and the bathroom needs attention, but it's good...until you go outside.'
0:04:09 > 0:04:15Well, at the front and side, the garden, as you can see, is a right old mess.
0:04:15 > 0:04:20It's more like a builder's yard! With lots of...well, you can see.
0:04:20 > 0:04:24What we also have here is this - a half-completed extension.
0:04:24 > 0:04:28My guess is that this might not have planning permission.
0:04:28 > 0:04:32A simple call to the local planning office would sort that one out.
0:04:32 > 0:04:37Has it been constructed to building regulations? Don't know.
0:04:37 > 0:04:41It doesn't have a roof or even a rear wall here. Work to be done.
0:04:41 > 0:04:45But if that was completed, it would be useful extra space.
0:04:45 > 0:04:49But it's just adding to the list of to do jobs on this one, isn't it?
0:04:49 > 0:04:54# Why do all good things come to an end
0:04:54 > 0:04:57# Come to an end... #
0:04:57 > 0:05:04'What seemed like a straightforward but lengthy list of to dos just got a whole lot more complicated
0:05:04 > 0:05:08'and there's more. There's a series of old out houses.
0:05:08 > 0:05:12'They're in the process of being attached to the extension,
0:05:12 > 0:05:17'though currently they're more dog's breakfast than breakfasting room.
0:05:17 > 0:05:22'But getting the extension checked out would be my priority. Is it legal? Is it safe?
0:05:24 > 0:05:32'We asked a local property expert for his opinion on this place, which had a guide price of £60,000.'
0:05:32 > 0:05:37It's obviously a full renovation. I don't think there's any room
0:05:37 > 0:05:44that doesn't need work doing to it. So new kitchens, new bathrooms, replaster, possibly rewire it.
0:05:44 > 0:05:46But it would make a good home.
0:05:46 > 0:05:51'What would he do with that half-finished extension?'
0:05:51 > 0:05:55First impression is pull it down. It's not been a good job at all,
0:05:55 > 0:06:00but it gives you a chance to do something with that area out there.
0:06:00 > 0:06:06'So assuming that either the extension was finished or replaced with something new,
0:06:06 > 0:06:10'what could this house that was guided at £60,000 sell on for?'
0:06:12 > 0:06:18I think once renovated, if you put an extension on the side or a conservatory or extra room,
0:06:18 > 0:06:22would be able to achieve around about £115,000.
0:06:22 > 0:06:26'And on the rental market?'
0:06:26 > 0:06:33The rental value on this property, three bedrooms, nice area, we'd easily get £625 per calendar month.
0:06:39 > 0:06:43There's clearly work needed to turn this house back into a home,
0:06:43 > 0:06:49not least sorting out that extension, but it's a good, solid property in a great location.
0:06:49 > 0:06:53Let's see who fancied it when it went under the hammer.
0:06:53 > 0:06:56OK, this is lot 54.
0:06:56 > 0:06:58I went to see this property.
0:06:58 > 0:07:01It's quite a big property.
0:07:01 > 0:07:06Got to be worth £60,000 of somebody's money here today.
0:07:06 > 0:07:1060 bid. Thank you, sir. £60,000 I have.
0:07:10 > 0:07:1362, may I say? At 62. New bid.
0:07:13 > 0:07:15At 62,000. Do we see 64?
0:07:15 > 0:07:18At 64,000. 66 in the room.
0:07:18 > 0:07:2167. At 67. Where have we gone? 68?
0:07:21 > 0:07:26£68,000. The light's in the way. £68,000. 69.
0:07:26 > 0:07:30Put you in for 70. At £70,000.
0:07:30 > 0:07:34At 71. At 71. And there's a new bid at the back.
0:07:34 > 0:07:39I'll have to put you in for 73 at the back.
0:07:39 > 0:07:41At 73,000. The lady seated.
0:07:41 > 0:07:44May I say 74? 74,000.
0:07:44 > 0:07:46At 74,000.
0:07:46 > 0:07:5075. Firs option on the phone. And it's 75.
0:07:50 > 0:07:5576, madam, seated? You've driven off your competition behind you.
0:07:55 > 0:07:59At 76,000, seated. 77 I'm looking for.
0:07:59 > 0:08:0277,000. 78, madam?
0:08:02 > 0:08:05At 78,000, then. Do we see 79?
0:08:05 > 0:08:1178 and a half? Try. Go on. 78 and a half. Same to you, madam. No?
0:08:11 > 0:08:1578,500 for the first time on the telephone. What about another £250?
0:08:15 > 0:08:1878,750?
0:08:18 > 0:08:2478,750. There. At 78,750. Is he going to round it to 79?
0:08:24 > 0:08:28No. At 78,750, then, for the first time. Second time.
0:08:28 > 0:08:30The third and final time.
0:08:30 > 0:08:3378,750.
0:08:34 > 0:08:38'For that slightly unusual price of £78,750,
0:08:38 > 0:08:42'The successful bidders were married couple Bernie and Bill.
0:08:44 > 0:08:50'Bill's a landscape gardener, while Bernie is a senior administrative officer
0:08:50 > 0:08:52'for children's services.'
0:08:52 > 0:08:57- Lovely to meet you both. Congratulations.- Thank you.
0:08:57 > 0:09:02- Tell me why you wanted this place. - Maybe an investment.- Maybe? - Maybe, yeah.
0:09:02 > 0:09:06So is the idea then to do what? Rent it out?
0:09:06 > 0:09:13No, we're going to live here. And then five or six years down the line, either rent it
0:09:13 > 0:09:18or sell it. And then we move on to start something else again.
0:09:18 > 0:09:24'Bernie and Bill have been together for 14 years, but only married 14 months ago at Gretna Green.
0:09:24 > 0:09:30'They'd been looking for a property either to invest in or live in for a while.'
0:09:30 > 0:09:33So how was the auction?
0:09:33 > 0:09:37- It was a real emotional experience, wasn't it?- Yeah.
0:09:37 > 0:09:42We were one step ahead. We were buying it before the auction anyway.
0:09:42 > 0:09:46- Sorry?- We were buying this before. - Were you?- Oh, yeah.
0:09:46 > 0:09:53- What happened? - Well, we couldn't complete. Or somebody couldn't complete.
0:09:53 > 0:09:59- So you'd agreed a price.- Yeah. - Absolutely.- We agreed the price. - What price?- 85.- And you got it for?
0:09:59 > 0:10:05- 78.- So how do you feel, then? - Fantastic!- Over the moon! - I wanted to cry!
0:10:05 > 0:10:08We had everything done, surveys.
0:10:08 > 0:10:15'They paid £78,750, to be exact, making it a saving of just over six grand.
0:10:15 > 0:10:20'Even though they were disappointed they couldn't complete earlier,
0:10:20 > 0:10:24'following the house to auction really paid off.'
0:10:24 > 0:10:28- So tell me what you're going to do. - Well, new bathroom, new kitchen.
0:10:28 > 0:10:34- Obviously new roof on the outhouse. - What about that mixture of rooms and outbuildings
0:10:34 > 0:10:39and half-started extensions? What are you going to do with that?
0:10:39 > 0:10:43- Well, the far room is going to be a utility room.- Yes.
0:10:43 > 0:10:51The door next to it is going to be a toilet and we're working on the rest of the space.
0:10:51 > 0:10:53So what's the budget for the work?
0:10:53 > 0:10:57- You might laugh at this. - You probably are.
0:10:57 > 0:11:03- 15, but we want to spend about 10. - Why are you so convinced I'll laugh? You think it's quite low?
0:11:03 > 0:11:06- Yeah.- When you see the size of it!
0:11:06 > 0:11:12'£10,000 is no laughing matter and neither is a 3-4 month timescale.
0:11:12 > 0:11:16'The couple intend to tackle a lot of the work themselves
0:11:16 > 0:11:23'and will bring in tradespeople when needed.' How will you get on working together on this project?
0:11:23 > 0:11:27- We know who our project manager is, don't we, Bill?- Who?
0:11:27 > 0:11:30- There's only one! - Rottweiler B!
0:11:30 > 0:11:37We'll be fine. You'll be doing a lot of the things. I'll be like, "This needs to be done.
0:11:37 > 0:11:39"Go away and..."
0:11:39 > 0:11:42- Are you excited by the prospect? - Oh, God!- Love it!- Yeah.
0:11:42 > 0:11:49- Not afraid of any of the work. - No, it doesn't faze us at all. We like this.- Love it.
0:11:49 > 0:11:53- Why haven't you done it before? - Well, it's been timing, finances...
0:11:53 > 0:11:59You get to a time in your life when you think it's time to move on to something else now.
0:11:59 > 0:12:03- Something different. We always wanted a project.- We did.
0:12:03 > 0:12:06So we've got that now.
0:12:06 > 0:12:11- Listen, congratulations.- Thank you. - Look forward to seeing how you get on.- Oh...
0:12:11 > 0:12:18'Something tells me these two are going to get through this with their sense of humour and determination.'
0:12:18 > 0:12:22Still, lots of work to be done to sort it out.
0:12:22 > 0:12:28I'm particularly interested to see what they do with the outbuildings. You can find out later in the show.
0:12:36 > 0:12:42This is St Mary's Bay on the Kent coast. It's a proper English seaside town.
0:12:42 > 0:12:48The area really thrived in the '20s and '30s with holidaymakers drawn to the beach
0:12:48 > 0:12:53and a Hi-De-Hi-style holiday camp which, rather bizarrely, turned into a poultry farm in winter.
0:12:53 > 0:13:00The question is, will our lot today turn out to be a sunny proposition or a real turkey.
0:13:01 > 0:13:06# You are the wind beneath my wings... #
0:13:07 > 0:13:13'Plenty of scope to stretch your wings and legs on this "bootiful" beach,
0:13:13 > 0:13:19'but will the property pickings here be plump and juicy or on the "poultry" side?'
0:13:22 > 0:13:28Just minutes from the coastline is the lot I'm here to see. It's a very interesting one.
0:13:28 > 0:13:32It's actually a plot of land on this unmade road
0:13:32 > 0:13:36and it's got planning permission for two chalet bungalows.
0:13:36 > 0:13:40And it's got a guide of £80,000-£85,000.
0:13:40 > 0:13:47This is the plot. Sorry, viewers, I didn't pack the strimmer today so I'll let you take a look around.
0:13:47 > 0:13:52# Jungle boogie Jungle boogie, get it on
0:13:52 > 0:13:56# Jungle boogie Jungle boogie, shake it around... #
0:13:56 > 0:14:02'Hack all of this back and there's plenty of room here for two bungalows.
0:14:02 > 0:14:07'And all just a plastic disc throw from the beach, over that rise.
0:14:07 > 0:14:13'Surrounding the plot is an intriguing mix of properties from all eras,
0:14:13 > 0:14:17'so what about the plans that came with this parcel of land?'
0:14:18 > 0:14:25So here is where it gets a little bit confusing. These plans were originally submitted for this site
0:14:25 > 0:14:32back in 2005. What we've got here is essentially a one-bedroom bungalow with garage, utility, loo and hall
0:14:32 > 0:14:37all on the ground floor, and the bedroom, lounge, kitchen and bathroom upstairs.
0:14:37 > 0:14:45None of this is particularly good use of space, so it's no surprise the plans were resubmitted
0:14:45 > 0:14:51for a three-bedroom bungalow with the lounge downstairs and kitchen and third bedroom.
0:14:51 > 0:14:58More effective use of the square footage, yes, but also turned down by the local planners!
0:14:58 > 0:15:00So what do we have now? Well...
0:15:00 > 0:15:05The plans that have been passed and sold with this site are these.
0:15:05 > 0:15:09A sort of halfway house going back to the original downstairs floorplan
0:15:09 > 0:15:15with no actual living space at all and two bedrooms upstairs with the kitchen and lounge,
0:15:15 > 0:15:21which could be considered a third bedroom in summer. Confused? Yes, I am.
0:15:21 > 0:15:23What on earth is going on?!
0:15:23 > 0:15:28# I said, hey What's going on? #
0:15:31 > 0:15:36'Now, in principle, I'm not against the idea of an upside-down house
0:15:36 > 0:15:42'with the living accommodation on the first floor, but for the planners to insist on that layout,
0:15:42 > 0:15:45'well, that might sound peculiar.
0:15:45 > 0:15:52'But, as is often the case, there's a perfectly good explanation and you don't have to go far for it.'
0:15:55 > 0:16:00The reason for all this planning hoo-ha is just there. That's right - it's the sea!
0:16:00 > 0:16:06This area falls within a coastal floodplain. In fact, according to the Environment Agency,
0:16:06 > 0:16:12our lot is in a high-risk flood zone with a 1 in 200 chance of flooding each year.
0:16:12 > 0:16:16Now this alone makes a massive difference to the planning process.
0:16:16 > 0:16:20Not only won't the council allow bedrooms on the ground floor,
0:16:20 > 0:16:26in this case it won't allow living space of any kind, so these bungalows will always be top heavy.
0:16:26 > 0:16:31It's not ideal, but I'd just be grateful the plans have been passed
0:16:31 > 0:16:38and all the headache and hassle of planning have been done by someone else.
0:16:38 > 0:16:45'In fact, as it's taken almost six years for the plans to get here, I'd be very wary of tinkering.
0:16:45 > 0:16:48'So what have we got?
0:16:48 > 0:16:55'The plot and the plans went to auction with a guide price of £80,000-£85,000.
0:16:55 > 0:17:02'Now the two bungalows on the plans are not huge and I reckon if you're canny, you could build them
0:17:02 > 0:17:07'for around £60,000 per bungalow. So if you buy the land for, say, £80,000
0:17:07 > 0:17:13'and spend £120,000 on the build, you'd be looking at investing about £200,000 here.
0:17:13 > 0:17:17'We asked a local estate agent how those figures stack up.
0:17:17 > 0:17:22'What could each bungalow sell for?'
0:17:22 > 0:17:29I would expect a marketing price, when finished, of perhaps in the region of £150,000-£160,000.
0:17:29 > 0:17:33'So there's a very decent profit to be made on the resale market,
0:17:33 > 0:17:36'but what about if rented out?'
0:17:38 > 0:17:42We'd be looking at a figure of approximately £695 per calendar month
0:17:42 > 0:17:45to perhaps £725.
0:17:45 > 0:17:49'I think this is an interesting proposition.
0:17:49 > 0:17:54'If you can see past the fact that the plans are for upside-down houses
0:17:54 > 0:18:01'and you keep your build cost down, there's money to be made. Let's see who went for this at the auction.'
0:18:02 > 0:18:08Lot 120. It's got planning permission for two detached chalet bungalows
0:18:08 > 0:18:11with garages. £80,000 to start me?
0:18:11 > 0:18:1575,000, then? I don't mind. 70,000 if you're quick.
0:18:15 > 0:18:1870 I have. I should think so, too.
0:18:18 > 0:18:21At 70,000, maiden bid. 72 is bid.
0:18:21 > 0:18:24And 74? ..73, I don't mind.
0:18:24 > 0:18:27And 74. And 75.
0:18:27 > 0:18:30And 76. And 77.
0:18:30 > 0:18:33And 78? A very definite no, wasn't it?
0:18:33 > 0:18:3877 I have. At 77,000, gentleman on the right-hand side.
0:18:38 > 0:18:42At £77,000, his bid. 78 do I see?
0:18:42 > 0:18:47At £77,000. It's being sold for the first time at 77,000.
0:18:47 > 0:18:52Being sold for the second time at 77,000. Being sold for the third
0:18:52 > 0:18:56and final time at 77,000. Are you all done?
0:18:56 > 0:19:03'That successful bid of £77,000 - three grand under the guide price - was placed by Simon.
0:19:03 > 0:19:09'He runs a business supplying meat and vegetables to Indian restaurants.
0:19:18 > 0:19:23'But Simon and his bricklayer friend Lee are swapping naans for plans
0:19:23 > 0:19:26'and are all set to get going on this site.'
0:19:29 > 0:19:36Guys, congratulations. Great to meet you. How did you meet? And why take this venture on?
0:19:36 > 0:19:41Well, we met through football. I'm a few years older than Lee.
0:19:41 > 0:19:47He was a young boy coming into football and I was near the end of my career. We played in a local pub team
0:19:47 > 0:19:51for a little while. And Lee's done work for me in the past.
0:19:51 > 0:19:57- We just decided to do this as a joint venture.- Have you ever worked together before?
0:19:57 > 0:20:03What we did was Simon bought a bit of land about 18 months ago.
0:20:03 > 0:20:08It was a bit of land that I was going to buy. We live in the same village
0:20:08 > 0:20:10and have a pint from time to time.
0:20:10 > 0:20:17Eventually Simon bought this piece of land, I did the work on that and we developed it.
0:20:17 > 0:20:20- And it went really well?- Very well.
0:20:20 > 0:20:26And so, you know, this piece of land came up that Simon noticed
0:20:26 > 0:20:33and he asked me if I'd be interested and I think between us we should do OK.
0:20:33 > 0:20:38Where do you guys stand now? Are you going to go with the planning permission it has?
0:20:38 > 0:20:42We are really, I suppose, but we are altering it.
0:20:42 > 0:20:46We hope to make it bigger, slightly bigger.
0:20:46 > 0:20:52We have looked into it with the architect that has done two very near to here.
0:20:52 > 0:20:58We could probably appeal and contest to try to get living accommodation on the ground floor,
0:20:58 > 0:21:06but it's time. But the drawings that he's done, he's spoken to the planners
0:21:06 > 0:21:12and the signs look pretty good. But we've got to go back through planning, so it's not 100%.
0:21:12 > 0:21:17'Uh-oh. Alarm bells are ringing in my mind at least.
0:21:17 > 0:21:23'Going back to the planners with new drawings after all the toing and froing already?'
0:21:24 > 0:21:29Oh, look! Now I love the front elevation. That looks beautiful.
0:21:29 > 0:21:34- Is that going to be facing towards the sea?- No.- This way?- Yeah.
0:21:34 > 0:21:40So this is what you'll see as you drive in. So you have the same size accommodation downstairs
0:21:40 > 0:21:46- as upstairs.- Well, upstairs is a lot bigger, in actual fact.
0:21:46 > 0:21:50Because this is a car port, it's not living accommodation.
0:21:50 > 0:21:53- So you've sneaked a bit of extra space in here!- We hope so!
0:21:53 > 0:21:59You've increased the square footage upstairs by putting a car port on the side. Very clever.
0:21:59 > 0:22:04- Who came up with that idea? - The architect. He's done all this. - That's a good idea,
0:22:04 > 0:22:07a good way to get around that.
0:22:07 > 0:22:12So you've now got a much bigger lounge.
0:22:12 > 0:22:17'The new plans have all the living accommodation upstairs,
0:22:17 > 0:22:24'but will the planners approve the new exterior look? That said, if they get the new plans through,
0:22:24 > 0:22:30'Simon and Lee will have two larger and potentially more valuable properties on the plot.'
0:22:30 > 0:22:35So, guys, what's your budget for the build costs?
0:22:35 > 0:22:39We estimate roughly about £100,000 each house.
0:22:39 > 0:22:42We've done some homework and think it'll come out at that.
0:22:42 > 0:22:50We'll hit a few snags on the way, but round about £100,000, so £200,000 for the two houses.
0:22:50 > 0:22:55- What sort of timescale? - It'll probably be 6-9 months,
0:22:55 > 0:23:00all done and dusted from start to finish.
0:23:01 > 0:23:07'These two seem remarkably unfazed by the task ahead, but with more planning hoops to jump through
0:23:07 > 0:23:11'I do worry about their 6-9 month timescale, though.
0:23:11 > 0:23:16'Simon will hold the purse strings with Lee doing most of the work.
0:23:18 > 0:23:24'But all this does seem quite a long way from the pub football team where Simon and Lee first met.'
0:23:24 > 0:23:30How do you think you'll get on with this, as mates? Think you'll still have that pint up the pub?
0:23:30 > 0:23:37Lee will be in charge of it all. I'll only come down from time to time. It's Lee doing it all.
0:23:37 > 0:23:42- Simon, you've got the easy job. - Well, yeah, I have.- I'm so excited.
0:23:42 > 0:23:47It's going to be really interesting to see what it looks like. I hope you do well. Well done.
0:23:47 > 0:23:51- Thanks, Lucy.- Nice to meet you. - Thanks very much.
0:23:51 > 0:23:55Simon and Lee have got an exciting and busy time ahead,
0:23:55 > 0:23:59but their architect has come up trumps with those plans.
0:23:59 > 0:24:03A worry, though, that the site may still prove problematic
0:24:03 > 0:24:07and will going back to the planners be more hassle than its worth?
0:24:07 > 0:24:11You can find out how it goes later on in the show.
0:24:11 > 0:24:15Coming up: some people believe there are only wrecks in auctions.
0:24:15 > 0:24:20This is a classic case of one of those properties that blows away the sceptics.
0:24:21 > 0:24:27In Kent, Simon and Lee bought land with plans already in place, but they had other ideas.
0:24:27 > 0:24:32We literally started from the beginning again.
0:24:32 > 0:24:36But first, are the experts impressed with Bill and Bernie's renovation?
0:24:36 > 0:24:41The quality is exceptional. The attention to detail is brilliant.
0:24:43 > 0:24:49It was in the Greater Manchester town of Eccles where we first saw this three-bed, end of terrace
0:24:49 > 0:24:54that initially appeared to be a decent refurbishment project.
0:24:54 > 0:24:59Although in poor order inside, the layout and structure held promise.
0:25:00 > 0:25:05It also sat on a corner plot, so had land at the front, side and back.
0:25:05 > 0:25:09But it was here at the back where the problems started,
0:25:09 > 0:25:17with a half-finished extension attached to outhouses which made the area more of a building site.
0:25:17 > 0:25:21But this didn't put off married couple Bill and Bernie,
0:25:21 > 0:25:26who were determined to make it their new home.
0:25:26 > 0:25:29# With all your faults I love you still
0:25:29 > 0:25:34# It had to be you, wonderful you It had to be you... #
0:25:35 > 0:25:41- We were buying it before the auction. - Sorry?- We were buying this. - Oh, yeah. Yeah.
0:25:41 > 0:25:46- What happened?- We couldn't complete. Or somebody couldn't complete.
0:25:46 > 0:25:52They saved over £6,000 by following it to auction and plan to do it up and move in
0:25:52 > 0:25:55before selling it on or renting out.
0:25:56 > 0:26:04They hope to complete renovations in what I was worried was an over-optimistic 3-4 months,
0:26:04 > 0:26:07on a budget of £15,000.
0:26:07 > 0:26:14Now, a whole 14 months later, we finally catch up with Bernie and Bill.
0:26:17 > 0:26:23Well, it may have taken longer than planned, but from the front the house is looking much better,
0:26:23 > 0:26:27with new double glazing in the front porch.
0:26:27 > 0:26:29And inside...
0:26:31 > 0:26:39The house now definitely seems like a home and a recent one at that. When did they move in?
0:26:39 > 0:26:41Just on Saturday. Three days ago.
0:26:41 > 0:26:45- I know. Four days ago. - Couldn't wait.
0:26:45 > 0:26:48So what have they just moved into?
0:26:50 > 0:26:54Downstairs, the kitchen's modern and smart.
0:26:56 > 0:27:01The dining room off it has a really fresh, welcoming feel.
0:27:02 > 0:27:07While upstairs, the three bedrooms are unrecognisable from before,
0:27:07 > 0:27:11now fully decorated with new fixtures and fittings.
0:27:20 > 0:27:24The bathroom, well, it's not really a bathroom any more,
0:27:24 > 0:27:29with a modern shower replacing the tired old bath.
0:27:29 > 0:27:33So, yes, this certainly is a place ready to be lived in,
0:27:33 > 0:27:39- but remember the challenge wasn't so much the house. - The major trouble was the extension.
0:27:39 > 0:27:45It needed a roof, needed floors going in and obviously plastering,
0:27:45 > 0:27:48pipework, electrics, you name it.
0:27:58 > 0:28:01Now it's got all that and more.
0:28:03 > 0:28:06With a utility area,
0:28:09 > 0:28:13a cloakroom and also a fully-fitted bathroom,
0:28:13 > 0:28:16which does have a bath.
0:28:17 > 0:28:24And a bedroom. They've turned what seemed to be a negative into a real plus point.
0:28:24 > 0:28:28It's like a little self-contained area, really.
0:28:28 > 0:28:32You've got your own front door and back door entrance to it.
0:28:32 > 0:28:39They've done a great job. Although they got tradespeople for some jobs, they also did a lot themselves.
0:28:39 > 0:28:41So how did working together go?
0:28:42 > 0:28:46- We'd had our ups and downs.- We did. - Oh, yes, we did.
0:28:46 > 0:28:53We have fall outs every now and again. I put paint on the wall and thought, "I don't like that.
0:28:53 > 0:29:00"It's doing nothing for me." Painted it totally and thought, "Don't like that. Got to change."
0:29:00 > 0:29:06- So... Yeah, patience. You have got a lot of patience, haven't you? - I have, yeah.
0:29:06 > 0:29:10# Have a little patience
0:29:10 > 0:29:15# I really want to start all over again... #
0:29:15 > 0:29:22No wonder it took so long, but, you know, sometimes it just has to be right.
0:29:22 > 0:29:29However, time is money. So did their £10,000-£15,000 budget go the same way as their timescale?
0:29:33 > 0:29:35£24,000!
0:29:36 > 0:29:37Yes!
0:29:37 > 0:29:40That's quite a jump, that, really.
0:29:40 > 0:29:42Yeah, but...
0:29:42 > 0:29:48- It was worth it in the end.- It was. - Worth it, you know. - It was money well spent.
0:29:48 > 0:29:52£24,000 is a jump up from their original budget.
0:29:52 > 0:29:57Added to the £78,750 they paid at auction,
0:29:57 > 0:30:02their total outlay is about 102,750 quid.
0:30:02 > 0:30:09So is Bill right? Was it money well spent? What do two local estate agents think?
0:30:09 > 0:30:16The quality is exceptional. The attention to detail is brilliant and it just smacks of quality.
0:30:16 > 0:30:21It's been really nicely refurbished. uPVC windows, central heating,
0:30:21 > 0:30:27new flooring, new decorating, new kitchens, bathrooms. It really has had the works done.
0:30:29 > 0:30:34It certainly gets the thumbs up from the estate agents, but will that equate to good valuations
0:30:34 > 0:30:39on this house on which they've spent nearly £103,000?
0:30:39 > 0:30:43You could possibly get anywhere between £110,000,
0:30:43 > 0:30:49and possibly if you got the right purchaser maybe as high as £120,000, but that would be top end.
0:30:49 > 0:30:53I'd expect a current asking price in the region of £110,000.
0:30:53 > 0:30:59- That's really good, isn't it? That's very good. Do you think so?- Yeah.
0:30:59 > 0:31:04So perhaps a modest pre-tax profit of between £7,000 and £17,000.
0:31:05 > 0:31:12The estate agents also thought the property could achieve £550-£575 per calendar month in rent,
0:31:12 > 0:31:16which would mean a healthy yield of around 6%.
0:31:16 > 0:31:22But with no immediate plans to let or sell, what's next for Bill and Bernie?
0:31:23 > 0:31:28- We would love a holiday this year. - We would.- We forfeited that.
0:31:28 > 0:31:32So we thought, right, get a holiday. At least one!
0:31:32 > 0:31:36- A week would be nice. - Two week!
0:31:39 > 0:31:46This is Mow Cop Castle, a medieval fortress and tower in Staffordshire.
0:31:46 > 0:31:53It dates back to 1754 when it was thought to have been built as an elaborate summerhouse,
0:31:53 > 0:31:57rather than the mighty fortress it might suggest.
0:31:57 > 0:32:03You can see it from all of south Cheshire and from the property I'm here to see today,
0:32:03 > 0:32:06which is 18 miles north of Stoke on Trent.
0:32:07 > 0:32:12I'm in Brown Lees in Staffordshire moorlands
0:32:12 > 0:32:18and the property up for auction was a three-bedroom semi-detached with a guide price of £80,000
0:32:18 > 0:32:22but before I've even reached the front door, I'm impressed.
0:32:22 > 0:32:26You can tell a lot about how someone looks after their house by their garden
0:32:26 > 0:32:31and in terms of front gardens, it doesn't get much more manicured.
0:32:31 > 0:32:35'My expectations have been set high here, given this lovely garden
0:32:35 > 0:32:39'and the position of the house on an elevated plot.'
0:32:39 > 0:32:44Well, let's hope the inside is as immaculate.
0:32:44 > 0:32:48Through the front door. Traditional layout for this kind of property.
0:32:48 > 0:32:54Living room on the front, central stairs up to the bedrooms and then over this way to the kitchen.
0:32:54 > 0:32:59Now... the layout at this point starts... Well, there's nothing wrong with it,
0:32:59 > 0:33:06but it could definitely be improved. Kitchen area, storage cupboard there, then the bathroom and loo,
0:33:06 > 0:33:11the only one in the property. Clearly not an ideal place to have it at all.
0:33:11 > 0:33:18And it makes this a very small place. So take out that wall and increase the size of the kitchen.
0:33:18 > 0:33:22One real positive thing is you pass through into this area,
0:33:22 > 0:33:27which originally would have led into the rear courtyard area.
0:33:27 > 0:33:33It's got this conservatory on it. It might be a bit dated, but it adds valuable space.
0:33:33 > 0:33:36# Ooh ah, just a little bit A little bit more
0:33:36 > 0:33:40# Ooh ah, just a little bit You know what I'm looking for... #
0:33:40 > 0:33:44'You can't take issue with the condition the property's in.
0:33:44 > 0:33:48'Just as the front garden suggested, the place is well-maintained.
0:33:49 > 0:33:53'Guided at £80,000, it could make a great starter home
0:33:53 > 0:33:59'and wouldn't necessarily cost a fortune to do up.' Upstairs, any nasties to discover?
0:33:59 > 0:34:05Absolutely not. Just three decent-sized bedrooms and, yes, it could do with a lick of paint
0:34:05 > 0:34:10and a bit of modernisation. It's got some nice original features.
0:34:10 > 0:34:14This is a classic case of a property that blows away all the sceptics
0:34:14 > 0:34:21that say all auction properties are derelict wrecks. This one isn't. And lucky whoever spotted it!
0:34:21 > 0:34:24# You hit the spot
0:34:24 > 0:34:28# Like a balmy breeze On a night in May... #
0:34:28 > 0:34:35'Remember I told you that Mow Cop Castle could be spotted from all around here? There it is.
0:34:35 > 0:34:41'One of the bedrooms could be turned into a bathroom to move that upstairs. That would be a shame
0:34:41 > 0:34:46'as the three bedrooms are worth hanging onto. Maybe the solution is
0:34:46 > 0:34:52'to build a new single-storey extension, replacing the current structure, which may be a problem.'
0:34:52 > 0:34:58At the rear of the property, this flat-roof conservatory throws up a few issues
0:34:58 > 0:35:05when it comes to insurance. A lot of mortgage companies don't like flat roofs.
0:35:05 > 0:35:11So do you keep that? It creates a little bit of extra space. I don't think that's a problem,
0:35:11 > 0:35:16but it does lead you out into a really nice rear garden. It's all in good condition.
0:35:16 > 0:35:19There's nothing wrong with this house.
0:35:19 > 0:35:26'Nothing except for that downstairs bathroom off the kitchen. That's my only bugbear.
0:35:26 > 0:35:32'What will a local property expert make of this house, guided at £80,000?'
0:35:32 > 0:35:35If this was my property,
0:35:35 > 0:35:42I'd certainly consider moving the bathroom to the first floor. That would make a large difference.
0:35:42 > 0:35:48But would losing that third bedroom have a negative impact on its rentability?
0:35:48 > 0:35:55What it loses on the rental income, it will actually gain on the rentability or saleability.
0:35:55 > 0:36:00You're moving that bathroom from the ground floor and it would be a sticking point
0:36:00 > 0:36:02with a lot of buyers or tenants.
0:36:02 > 0:36:09Once the property has been upgraded, perhaps rewired and that bathroom sorted, what could it sell for?
0:36:09 > 0:36:15Once the property's renovated, I'd have no hesitation in putting it on at £125,000.
0:36:15 > 0:36:21- What about rental income? - Again, once renovated,
0:36:21 > 0:36:26on the rental market I don't see £525 per calendar month being a problem.
0:36:26 > 0:36:31So this house appears to be a solid investment and it's in great condition.
0:36:31 > 0:36:37But the property market is still tricky, so what condition is it in and what was someone willing to pay?
0:36:37 > 0:36:39Let's go to the auction.
0:36:39 > 0:36:42Lot 60. Three-bed, semi-detached.
0:36:42 > 0:36:45In need of modernising.
0:36:45 > 0:36:48What should we say for Lot 60? 70 to start me?
0:36:48 > 0:36:5265, then? 65 bid. Thank you.
0:36:52 > 0:36:54At 65,000. 70.
0:36:54 > 0:36:58At £70,000. I'll go in ones if it helps. 71.
0:36:58 > 0:37:0272. 73. 74. 75.
0:37:02 > 0:37:07At £75,000, then. New bidder. 76.
0:37:07 > 0:37:0977.
0:37:09 > 0:37:1178. 79.
0:37:11 > 0:37:1480. Another one?
0:37:14 > 0:37:20You're not looking at me. I'm assuming you're out. Another one anywhere else?
0:37:20 > 0:37:22£80,000 for the first time.
0:37:22 > 0:37:29£80,000 for the second time. Third and final time at 80,000. It's your lot, sir. Well done.
0:37:29 > 0:37:34'That relieved young lady was Sarah. Her boyfriend, Andy, was doing the bidding
0:37:34 > 0:37:40'and, accompanied by her dad Bill, they bought this for bang on the guide price of £80,000.'
0:37:41 > 0:37:47# No need to ask He's a smooth operator
0:37:47 > 0:37:51# Smooth operator... #
0:37:51 > 0:37:58'Andy's a plasterer and will be smoothing out any problems with the help of Bill, an electrician.
0:37:58 > 0:38:03'I met up with them to find out what they had planned.'
0:38:03 > 0:38:08- Andy, Bill, good to meet you both. - Hi.- Hi.- Congratulations.
0:38:08 > 0:38:14- Tell me why you wanted to buy this house.- Me and my girlfriend have been looking for about six months.
0:38:14 > 0:38:20We missed out on a couple, then we looked on the internet and we saw this.
0:38:20 > 0:38:27- So are you first-time buyers?- Yeah. - Great. Not many first-time buyers venture into the auction rooms,
0:38:27 > 0:38:34- but you did.- We did. We'd been offering on properties and missed out and we saw this one.
0:38:34 > 0:38:39We had two viewings before we bought it and we loved it.
0:38:39 > 0:38:44- So, Bill, what's your involvement? - I used to be an electrician years ago.- Right.
0:38:44 > 0:38:50- They asked me to come along and have a look.- Did you look at it before the auction as well?- Yeah.
0:38:50 > 0:38:55- And what did you think?- Too good to be true, really, for the price.
0:38:55 > 0:39:00I've worked in these kind of houses and they're solid.
0:39:02 > 0:39:06You might get a bit of damp or what have you, but it's curable.
0:39:06 > 0:39:10And looking round this, I don't think you'll get much better.
0:39:10 > 0:39:15- So you're father-in-law, then? - To be.- To be?- Yes.
0:39:15 > 0:39:17So you're going to get married soon?
0:39:18 > 0:39:20Maybe!
0:39:20 > 0:39:24# Maybe, baby, I'll have you
0:39:24 > 0:39:27# Maybe, baby, you'll be true
0:39:27 > 0:39:31# Maybe, baby, I'll have you for me... #
0:39:31 > 0:39:37'Well, no date set just yet. Andy and his girlfriend, Sarah, are living at her parents' house
0:39:37 > 0:39:42'and will move in here once this place is refurbished.'
0:39:42 > 0:39:47- What are you going to do to it? - Rewire, new central heating system, replaster throughout.
0:39:47 > 0:39:54Downstairs in the kitchen we're going to take out the dividing wall between the bathroom and kitchen
0:39:54 > 0:40:00- and take the bathroom upstairs. - And lose a bedroom?- Yeah. The kitchen's one of the main parts.
0:40:00 > 0:40:07- And the conservatory on the back? - We've not made no plans. We'll possibly put a toilet downstairs.
0:40:08 > 0:40:13'It all sounds like a perfect plan. Bill's experience as an electrician
0:40:13 > 0:40:20'plus Andy's dad Craig being a builder means he shouldn't have too much trouble sourcing help
0:40:20 > 0:40:24'to do the work in his timeframe of 4-6 months.'
0:40:24 > 0:40:31- What's the budget for the work? - Pretty much non-existent, really. It cleared us out at auction!
0:40:31 > 0:40:38It perhaps came a few months too early. We were saving for a deposit and all the other fees.
0:40:38 > 0:40:43- We've got at the moment about £2,000 to start the work.- Two?- Yeah.
0:40:43 > 0:40:48And then it'll be as and when what spare cash is available every month, really.
0:40:48 > 0:40:55- Doing it myself I can keep the costs down.- You've got to buy boilers and radiators
0:40:55 > 0:41:02- and kitchen units.- We've got friends and family who will help out, a few things already bought for us.
0:41:02 > 0:41:08- Well, congratulations.- Thank you. - Good luck. We look forward to seeing how you get on.- Thanks.
0:41:10 > 0:41:16Well, for whatever reason, a lot of first-time buyers don't consider the auctions,
0:41:16 > 0:41:21but they're definitely worth a look. I think he's got a cracking house
0:41:21 > 0:41:26and with almost-father-in-law Bill, I'm sure they'll do a great job.
0:41:26 > 0:41:31You can find out how they get on later in the show.
0:41:32 > 0:41:38Once you've bought your property at auction, you may think the hard work is over,
0:41:38 > 0:41:43- but believe me that is not the case. - Sometimes the purchasing is the calm before the storm,
0:41:43 > 0:41:49- so have today's buyers ridden the waves or sunk without trace? - Let's find out.
0:41:57 > 0:42:01Blue skies, crashing waves and a gorgeous stretch of beach.
0:42:01 > 0:42:08OK, so the Kent coast isn't quite Baywatch, but there was something here that needed saving -
0:42:08 > 0:42:12this plot of land, which was frowned in weeds.
0:42:12 > 0:42:18It was Simon and Lee who came to the rescue by buying the land for £77,000.
0:42:18 > 0:42:24They originally met in a local pub football team and this was their first business venture together.
0:42:27 > 0:42:32How do you think you'll get on? As mates. Still going to have a pint?
0:42:32 > 0:42:38- Yeah.- Lee will be in charge of it all. I'll only come down from time to time to have a look.
0:42:38 > 0:42:42- It's Lee doing it all. - Simon, you've got the easy job.
0:42:42 > 0:42:46- I have, really.- And you've got a lot of hard work ahead.- I have.
0:42:46 > 0:42:51- Mind you, you were the younger one in the football team.- That's right.
0:42:51 > 0:42:56'There was already planning permission for bungalows,
0:42:56 > 0:42:59'but with risk of flooding no living space was approved downstairs.
0:42:59 > 0:43:05'So the kitchen, living room and two bedrooms were to be upstairs above car ports,
0:43:05 > 0:43:11'but the guys wanted to re-apply for permission to build two three-bed properties with car ports,
0:43:11 > 0:43:18'allowing more living space on the upper floor. I was dubious about their 6-9 month timescale,
0:43:18 > 0:43:23'but surely three YEARS later they've finished?'
0:43:23 > 0:43:30# You raised me up to walk on stormy seas... #
0:43:30 > 0:43:37'Well, the houses are up and looking great. They're not quite finished, but they're getting there.
0:43:37 > 0:43:44'They're like bungalows on stilts as it's not possible to get approval for living space downstairs.
0:43:44 > 0:43:51'So what they've done instead is to go larger to the side, creating extra space for a third bedroom.
0:43:51 > 0:43:58'As I suspected, getting the plans amended is what ate up all their time.'
0:43:58 > 0:44:02We had lots of issues with the planning, re-applying,
0:44:02 > 0:44:09which takes a long time. We had lots of issues with the original architect that we used,
0:44:09 > 0:44:14so we transferred to a new architect that we've used before.
0:44:14 > 0:44:19It's just months and months on end and it's taken a long time to get the project underway.
0:44:19 > 0:44:26'As Lee and Simon found out, just because there's approved planning permission,
0:44:26 > 0:44:32'even if you don't amend the plans, starting the work is still not plain sailing.
0:44:32 > 0:44:35'You need to prepare for choppy waters.'
0:44:35 > 0:44:39Even though you buy the property with detailed planning,
0:44:39 > 0:44:44it has to start again. We had to get flood risk reports, badger reports,
0:44:44 > 0:44:51so we've literally started from the beginning again. That's why it was so time-consuming.
0:44:51 > 0:44:56I think it was over a year before we got the agreement from the council
0:44:56 > 0:45:01and then building regs hadn't been applied for. We thought they had.
0:45:01 > 0:45:07And it was another 8 or 10 months. So, all in all, it's been nearly two years,
0:45:07 > 0:45:11until we finally started the production of the buildings.
0:45:11 > 0:45:18'But all that waiting has been well worth it and I love that blue wooden cladding on the outside.
0:45:18 > 0:45:26'It may seem odd to have a property essentially upside down, but imagine the view on a clear, sunny day.'
0:45:26 > 0:45:30# I want to turn the whole thing upside down... #
0:45:30 > 0:45:37'It's still a bit of a building site here, with Simon managing the teams of workmen at each stage.
0:45:37 > 0:45:42'Bearing in mind it's been three years and they've still not finished,
0:45:42 > 0:45:47'how far off does Lee think they are from having them complete?'
0:45:47 > 0:45:51The electrician's just finishing off, the plumbers are finishing off.
0:45:51 > 0:45:56We've got to fit the kitchens and do all the carpentry.
0:45:56 > 0:46:00Em... which won't take much longer now.
0:46:00 > 0:46:04The rendering, we might have to wait another week before it's rendered.
0:46:04 > 0:46:08The weather's a little bit too cold at the moment,
0:46:08 > 0:46:13but apart from that we're probably only 6-8 weeks away from completion.
0:46:13 > 0:46:18'The timescale may have gone well over the estimate. Has the budget?
0:46:18 > 0:46:21'They hoped to spend about £100,000 per house,
0:46:21 > 0:46:27'so multiply that by two plus the £77,000 they paid at auction,
0:46:27 > 0:46:32'that would be a total spend of £277,000. How close to that are they now?'
0:46:32 > 0:46:39We think it will be in the region of just over £300,000 in total - buying the land and building the properties.
0:46:39 > 0:46:45We've still got a considerable amount of expense as you see for the area for parking
0:46:45 > 0:46:49and the patios out the back. That's the sort of region we reckon.
0:46:49 > 0:46:57'An overspend of £33,000 then? But when it's done, I think it will be amazing and worth every penny.
0:46:57 > 0:47:03'Any potential buyer or tenant should agree. They haven't decided what to do with them yet.
0:47:03 > 0:47:08'They could rent them out as holiday homes or sell them as beach-side properties.
0:47:09 > 0:47:15'Maybe some thoughts and figures from two local property experts will help.'
0:47:15 > 0:47:19I'm quite surprised. As you come in to the development, it opens up.
0:47:19 > 0:47:25They've got really nice cladding on the outside. It's going to be a really nice development.
0:47:25 > 0:47:30The size of the accommodation and general layout is very appealing.
0:47:30 > 0:47:34Having put the living accommodation off the ground floor,
0:47:34 > 0:47:40with the potential risk of flooding perhaps in the area, in the UK as a whole,
0:47:40 > 0:47:44people are looking for this kind of thing.
0:47:44 > 0:47:51'On to figures, then. Keeping in mind that total outlay of £300,000 for the land plus the two builds,
0:47:51 > 0:47:54'what could they each be worth?'
0:47:54 > 0:47:58I would market each property for £225,000.
0:47:58 > 0:48:04I feel they could sell for within the region of £215,000-£225,000.
0:48:04 > 0:48:11'That top figure of £225,000 could see Simon and Lee clear a profit of £150,000,
0:48:11 > 0:48:14'minus fees and taxes. What do they think of that?'
0:48:14 > 0:48:21Happy enough about those values. When these are completed, I think it'll be closer to 250, personally.
0:48:21 > 0:48:26I think once they're all landscaped and that, it may increase the value,
0:48:26 > 0:48:29but we're not disappointed at that.
0:48:30 > 0:48:35- 'What if they decided to let them?' - I'd say that each property would rent
0:48:35 > 0:48:39for £750 per calendar month.
0:48:39 > 0:48:43If we were looking to rent these properties in today's market,
0:48:43 > 0:48:47we'd be looking at a rental in the region of £750 per month.
0:48:47 > 0:48:54'That would give them a yield of around 6%. What if they decided to go down the holiday let route?'
0:48:54 > 0:49:01These properties could let for potentially within the region of £500-£700 per week.
0:49:01 > 0:49:07We did have that in mind, that sort of figure. That seems a fair valuation.
0:49:07 > 0:49:13'Plenty to think about then, but they'll wait until they finish to see how the market looks.
0:49:13 > 0:49:21'However, the holiday let option does seem the most tempting until the resale market picks up.
0:49:21 > 0:49:27'So it's been a successful venture for them and they've had some success on the pitch, too.'
0:49:27 > 0:49:31We're going to Wembley. Tunbridge Wells is not far away from us
0:49:31 > 0:49:38and I know a couple of lads who play for them. We're going to Wembley in May for the FA Vase final.
0:49:38 > 0:49:41We'll have a couple of beers that day.
0:49:44 > 0:49:51'Time now to return to Brown Lees near Stoke on Trent, where Andy bought this three-bed semi
0:49:51 > 0:49:57'for £80,000. He and his girlfriend, Sarah, plan to make it their first home together.
0:49:57 > 0:50:03'It was going to be a real family effort. Andy's a plasterer, his dad Craig a builder,
0:50:03 > 0:50:07'and Sarah's dad Bill is a retired electrician.
0:50:07 > 0:50:12'Bill was confident that this would be a great starter home.'
0:50:12 > 0:50:16I've worked in these kind of houses and they're solid.
0:50:16 > 0:50:21You might get a bit of damp and what have you, but it's curable.
0:50:21 > 0:50:26And looking round this, I don't think you'll get much better.
0:50:26 > 0:50:31'Downstairs, Andy was going to remove the wall between the bathroom and kitchen
0:50:31 > 0:50:36'and relocate the bathroom upstairs into the smallest of three bedrooms.
0:50:36 > 0:50:43'It was just as well the dads were going to be on hand to help, given the finances.'
0:50:43 > 0:50:46What's the budget for the work?
0:50:46 > 0:50:50Pretty much non-existent. They cleared us out at auction.
0:50:50 > 0:50:56It perhaps came a few months too early. We were saving for a deposit and all the other fees.
0:50:56 > 0:51:01- We've got, at the moment, about £2,000.- Two?- Yeah.
0:51:01 > 0:51:06And then it will be what cash is available at the end of every month.
0:51:06 > 0:51:13'With help from friends and family, Andy reckoned the work would take 4-6 months.
0:51:13 > 0:51:17'Well, six months after our first visit, we've come back.
0:51:18 > 0:51:24'There's "snow" sign of Bill. Just Andy to talk us through the progress.
0:51:25 > 0:51:30'But a shining start in the living room.
0:51:30 > 0:51:33'I really love the log burner and oak surround.
0:51:35 > 0:51:39'At the back of the house, did the wall to the bathroom come down?
0:51:39 > 0:51:41'Oh, yes!
0:51:44 > 0:51:49'And this large kitchen/diner is the result.
0:51:49 > 0:51:56'And a smart shower room has been installed upstairs. It means losing the smallest bedroom
0:51:56 > 0:52:04'but I think it's a price worth paying. How does Andy feel now he and Sarah have moved in?'
0:52:04 > 0:52:08Glad to be nearly at the end of the road. It's been a lot of hard work,
0:52:08 > 0:52:13- a lot of late nights. - 'The house looks good, but there were problems.'
0:52:13 > 0:52:17We found some woodworm so we had to treat all the timber floors.
0:52:17 > 0:52:20Luckily, it hadn't gone into the joists.
0:52:20 > 0:52:23And then the kitchen was a big job.
0:52:23 > 0:52:29We had to knock two walls down, cut a doorway out, put a window in. That was one of the biggest jobs.
0:52:29 > 0:52:32And moving the bathroom upstairs and getting the waste in.
0:52:32 > 0:52:38'The couple went for a traditional style in the kitchen, with a Belfast sink,
0:52:38 > 0:52:42'solid wood work surfaces, plus slate-effect flooring.
0:52:45 > 0:52:50'It's all looking lovely. This project may not have had a lot of money,
0:52:50 > 0:52:56- 'but it had a lot of heart put into it.'- My dad and Sarah's dad, we couldn't have done it without them.
0:52:56 > 0:53:02I did most of the plastering, Sarah's dad did the electrics, my dad did the building work
0:53:02 > 0:53:05and knocking the walls down.
0:53:05 > 0:53:11'Has Andy been busy with the colour charts and fabric swatches?'
0:53:11 > 0:53:16The colour and design are down to Sarah. She picked everything. I left it to her.
0:53:16 > 0:53:20She's done the decoration and furnishing.
0:53:20 > 0:53:24'I'm impressed by Andy and Sarah's makeover in the living room, too,
0:53:24 > 0:53:28'particularly that welcoming log burner and fire surround.'
0:53:28 > 0:53:31The fireplace was reclaimed from a pub.
0:53:31 > 0:53:39We got all the beams out of there and the York stone from work. All free, which is nice.
0:53:39 > 0:53:46'Very nice considering that after buying the house they only had about £2,000 left for the work.
0:53:46 > 0:53:49'They've added whatever was left at the end of each month's wages.
0:53:49 > 0:53:56- 'So how much have they spent?' - We spent about £9,500 in the end, a lot more than I first said.
0:53:56 > 0:54:02Apart from the kitchen, we only spent about £3,000. The kitchen was the main spend.
0:54:02 > 0:54:08'With the £80,000 they paid at auction, that takes their current total investment to around £89,500.
0:54:08 > 0:54:15'It's six months since we first visited the property. Were they snowed under by the work?'
0:54:15 > 0:54:21It's taken about four months, from start to finish and moving in.
0:54:21 > 0:54:28'There's still plenty to do including making good around the new windows and doors.
0:54:28 > 0:54:35'Long-term, Andy plans to divide the conservatory, creating a loo and a utility room.
0:54:35 > 0:54:41'I'm really impressed. They really are turning this house into their home.
0:54:43 > 0:54:49'Let's see how the numbers stack up. What do two local property experts make of the finish?
0:54:49 > 0:54:55'Will the house appeal to the rental and sales market? First, the estate agent who visited last time.'
0:54:55 > 0:55:00After being in the first time, they've done a lot of work. It's much better,
0:55:00 > 0:55:05the layout downstairs considerably better. Moving the shower room upstairs
0:55:05 > 0:55:11is going to create a lot more interest and be viewed a lot more favourably by potential buyers.
0:55:11 > 0:55:17They've done a very good job. They retained original features
0:55:17 > 0:55:21and it's not quite as sterile and bland as some refits.
0:55:21 > 0:55:23What rental income could it generate?
0:55:23 > 0:55:28I'd put this property on the market for rent for £550 per calendar month.
0:55:28 > 0:55:32Rental value, somewhere in the region of £600 per calendar month.
0:55:32 > 0:55:39Helpful to know. A potential yield of 7-8% if Sarah and Andy were temped to let.
0:55:39 > 0:55:44That's very nice. I'm pleased with that, definitely. Sarah will be as well.
0:55:44 > 0:55:49With the £89,500 the couple have invested here,
0:55:49 > 0:55:54will the sale valuations mean any profit?
0:55:54 > 0:55:56I'd put this on for £110,000.
0:55:56 > 0:56:01Once the property is finished, I'd expect a comfortable value of £115,000,
0:56:01 > 0:56:04maybe even pushing £120,000.
0:56:04 > 0:56:10More good news. A potential profit of £20,500 to £30,500
0:56:10 > 0:56:15before tax and expenses. Not bad after four months' work.
0:56:15 > 0:56:19That's nice. I'm pleased with that. It's quite a nice little profit.
0:56:19 > 0:56:25- I'm sure Sarah will be pleased. - She'll be happy with that. I don't think she'll be disappointed.
0:56:26 > 0:56:33Although it's finished now, I'm glad we're here. So, yeah, it's been a worthwhile adventure.
0:56:36 > 0:56:42Well, once again we've proved that even the smallest properties can end up with a tale to tell.
0:56:42 > 0:56:48- So join us next time for more surprising stories here on Homes Under The Hammer.- Goodbye.- Goodbye.
0:57:06 > 0:57:08Subtitles by Red Bee Media Ltd