0:00:02 > 0:00:05Hello. Those glamorous houses that you see in newspapers and magazines
0:00:05 > 0:00:06are very tempting, aren't they?
0:00:06 > 0:00:09But do they always seem way out of your budget?
0:00:09 > 0:00:13For something a bit more affordable and possibly more interesting,
0:00:13 > 0:00:16why not head down to your local auction rooms?
0:00:42 > 0:00:45Well, there are literally thousands of properties
0:00:45 > 0:00:48that come up for auction every month in the UK.
0:00:48 > 0:00:52Everything from flats to bungalows to plots of land.
0:00:52 > 0:00:53So, whatever you're looking for,
0:00:53 > 0:00:56you can usually find something that fits the bill.
0:00:56 > 0:00:58Let's check out what got our buyers' arms waving
0:00:58 > 0:01:00in today's auction rooms.
0:01:01 > 0:01:05'I get up close and personal at this mid-terrace in Birmingham.'
0:01:05 > 0:01:09The lengths I go to exploring properties for this show.
0:01:11 > 0:01:13'I've seen some structural issues in my time
0:01:13 > 0:01:17'but the one in this London property could beat the lot.'
0:01:17 > 0:01:21That, my friends, is a crack and a half.
0:01:21 > 0:01:24'And I've always believed the old adage that it's far better to
0:01:24 > 0:01:27'give than receive, and this house in Cumbria seems to agree.'
0:01:27 > 0:01:30This really is a house that just keeps on giving.
0:01:32 > 0:01:34All these properties have been sold at auction.
0:01:34 > 0:01:37We'll find out who bought them and what they paid for them
0:01:37 > 0:01:40when they went under the hammer.
0:01:45 > 0:01:48This is the bustling Birmingham suburb of King's Heath.
0:01:48 > 0:01:51It has lovely parks, good transport links
0:01:51 > 0:01:54and is known as "the village" by locals.
0:01:54 > 0:01:57King's Heath came into being in the 18th century,
0:01:57 > 0:02:01thanks to improved road links between Alcester and Birmingham.
0:02:01 > 0:02:02Well, these days,
0:02:02 > 0:02:06King's Heath is a really popular place to live and shop.
0:02:06 > 0:02:09You've got local facilities, amenities
0:02:09 > 0:02:12and yet you're only four miles from Birmingham city centre.
0:02:15 > 0:02:19But will today's auction lot be the jewel in the King's Heath crown
0:02:19 > 0:02:23or will it require a king's ransom to save it from the chop?
0:02:24 > 0:02:28Well, the property I'm here to see is on a fairly busy road
0:02:28 > 0:02:33but it does benefit from also being on a bus route, which is great news.
0:02:33 > 0:02:36So, what was on offer at the auction?
0:02:36 > 0:02:38Well, it was a three-bedroom terrace,
0:02:38 > 0:02:43had a guide price of £120,000 to £125,000
0:02:43 > 0:02:45and the outside looks interesting.
0:02:50 > 0:02:53Oh, dear.
0:02:53 > 0:02:54That's not a good start, is it?
0:02:54 > 0:02:57The door's catching on the box to the electric meter.
0:02:57 > 0:03:00That's the sort of thing that really annoys me.
0:03:00 > 0:03:03How much effort does it take to make that box slightly different?
0:03:03 > 0:03:06Anyway, moving on from things that shouldn't wind me up but do,
0:03:06 > 0:03:08at least we've got a nice little entrance area here
0:03:08 > 0:03:11with a double-glazed door, so at least it's going to keep
0:03:11 > 0:03:15some of the noise from the road and the passing buses down.
0:03:15 > 0:03:17Into your front living room area...
0:03:17 > 0:03:19Look, by magic, there's a bus.
0:03:19 > 0:03:20Into your front living room,
0:03:20 > 0:03:23a nice-sized space, big, high ceilings.
0:03:23 > 0:03:27Quite like this fireplace too, actually, with the bricks and stuff.
0:03:27 > 0:03:31Open fires are always a big favourite. And the floor, too.
0:03:31 > 0:03:35Clean that off and you've got a really nice stripped-back floor.
0:03:35 > 0:03:38Obviously, two rooms have been knocked into one at some point
0:03:38 > 0:03:41and that gives the front and rear living room area here
0:03:41 > 0:03:43this really nice open-plan area
0:03:43 > 0:03:46and I'm feeling straight away this is not a small two-bedroom terrace.
0:03:46 > 0:03:48This is a three-bedroom terrace
0:03:48 > 0:03:50which has got lots and lots of opportunity.
0:03:50 > 0:03:52And, yeah, it's looking good.
0:03:54 > 0:03:56Yes, it's a pretty decent blank canvas really
0:03:56 > 0:03:58but if it's a blank canvas you're after,
0:03:58 > 0:04:02look no further than the kitchen.
0:04:02 > 0:04:05Or what was one once upon a time.
0:04:05 > 0:04:09Now, the lack of a kitchen may make taking out a mortgage trickier,
0:04:09 > 0:04:14so you might have to shop around, but this is a decent enough space.
0:04:14 > 0:04:16And beyond the soon-to-be kitchen?
0:04:18 > 0:04:23The lengths I go to exploring properties for this show,
0:04:23 > 0:04:26but I am sinking to new depths in this instance.
0:04:26 > 0:04:31Look at this, just off the kitchen, there is this sunken bath.
0:04:31 > 0:04:34Now, it would look fantastic
0:04:34 > 0:04:38in some Roman steam baths,
0:04:38 > 0:04:40but, really, in this property?
0:04:40 > 0:04:44I don't know quite what whoever put it in was planning,
0:04:44 > 0:04:47but I don't think it really works,
0:04:47 > 0:04:50so, yeah, it's got to go.
0:04:55 > 0:04:59Oh, dear. Toga party, anyone? No, let's not go there.
0:04:59 > 0:05:02Up the stairs and there are three bedrooms.
0:05:02 > 0:05:07They're all looking a bit worse for wear but they should scrub up OK.
0:05:07 > 0:05:10The largest one even has a little en suite which is a bonus.
0:05:17 > 0:05:20Well, there's clearly work to be done to sort those bedrooms out
0:05:20 > 0:05:23but they are at least a good size and those are the three bedrooms
0:05:23 > 0:05:26that are described in the auction catalogue.
0:05:26 > 0:05:29What isn't actually talked about is this room here, the attic room.
0:05:29 > 0:05:31It's certainly not described as a bedroom.
0:05:31 > 0:05:34That could be that it hasn't had building regulations approval
0:05:34 > 0:05:38for use as such, but actually, it's a really nice space.
0:05:38 > 0:05:40Not only have you got double aspect,
0:05:40 > 0:05:44you've also got a little en suite,
0:05:44 > 0:05:45so make sure that this is compliant,
0:05:45 > 0:05:48and this is a really lovely additional room.
0:05:49 > 0:05:52To sell this place on as a four-bed at the very least you'd have
0:05:52 > 0:05:56to make sure that the insulation is up to scratch
0:05:56 > 0:05:59and that the stairs comply with building regulations.
0:05:59 > 0:06:03At the back, there's a decent garden, if a tad overgrown,
0:06:03 > 0:06:07and the decking around the house has seen better days.
0:06:07 > 0:06:10But there's one aspect that troubles me more than anything else.
0:06:10 > 0:06:12It's something in the legal pack.
0:06:15 > 0:06:17Now, I'm always telling you that before you buy
0:06:17 > 0:06:20a property at auction, you must definitely,
0:06:20 > 0:06:25definitely read the legal pack and this particular property
0:06:25 > 0:06:28throws up a case in point because it says in the auction
0:06:28 > 0:06:33catalogue that this property is freehold with vacant possession.
0:06:33 > 0:06:35Well, there's clearly nobody in here
0:06:35 > 0:06:37and you might think it is, in fact, vacant possession.
0:06:37 > 0:06:42However, the legal pack reveals that there is, in fact,
0:06:42 > 0:06:43a lease on this property.
0:06:43 > 0:06:47Now, if you were applying for a mortgage, the mortgage company
0:06:47 > 0:06:51would not necessarily give you a mortgage under those circumstances
0:06:51 > 0:06:54because they'd want to know more about the lease etc.
0:06:54 > 0:06:56And if you are looking to move into the property and the leaseholder
0:06:56 > 0:06:59should happen to come back, you can imagine the complications.
0:06:59 > 0:07:03It needs to be looked over by a solicitor and, most importantly,
0:07:03 > 0:07:05forewarned is forearmed.
0:07:05 > 0:07:09If you've read the legal pack, you know the circumstances.
0:07:09 > 0:07:12If you haven't, you don't.
0:07:15 > 0:07:20So, do your homework, read the legal pack and don't buy blind.
0:07:20 > 0:07:23It's not rocket science but it's amazing how many people fail
0:07:23 > 0:07:25to follow these three simple rules.
0:07:25 > 0:07:28What does a local estate agent make of this mid-terrace
0:07:28 > 0:07:31and its Graeco-Roman feature bathroom?
0:07:34 > 0:07:36The property needs refurbishing from top to bottom.
0:07:36 > 0:07:39It needs a new bathroom. It needs a new kitchen.
0:07:39 > 0:07:43It needs wiring, new heating and decorating throughout.
0:07:46 > 0:07:50Bearing in mind the £120,000 to £125,000 guide price,
0:07:50 > 0:07:54what could the property, once renovated, fetch if sold on?
0:07:56 > 0:08:01Resale value, once refurbished, I would say around £170,000.
0:08:03 > 0:08:06And on the rental market?
0:08:06 > 0:08:11I would anticipate a rent around £675 per calendar month.
0:08:11 > 0:08:13Well, it's a nice enough property
0:08:13 > 0:08:16but it could fail at the most basic level
0:08:16 > 0:08:20when it comes to that whole issue of freehold or leasehold.
0:08:20 > 0:08:24Especially if you were to be looking to buy this with a mortgage.
0:08:24 > 0:08:28Let's find out who did buy it when it went under the hammer.
0:08:28 > 0:08:31Lot 144.
0:08:31 > 0:08:34This was the penultimate lot of the auction
0:08:34 > 0:08:36and did take a while to get going.
0:08:36 > 0:08:38Where shall we start, folks?
0:08:38 > 0:08:40£125,000 anywhere?
0:08:40 > 0:08:43115? 110, I don't mind.
0:08:43 > 0:08:4790, then, and I will not go lower and I will move on.
0:08:47 > 0:08:52Eventually, the bids did start coming and we pick it up at 110,000.
0:08:52 > 0:08:53Going to make me work, madam.
0:08:53 > 0:08:57At 111, I'm bid. At 111, I'm bid.
0:08:57 > 0:09:00At 111, I'm bid. Is it 115 now?
0:09:00 > 0:09:02It's been a long old day. At 115.
0:09:02 > 0:09:04At 115, thank you.
0:09:04 > 0:09:06At 115, I'm bid, madam.
0:09:06 > 0:09:09Is it 116 now? Thank you.
0:09:09 > 0:09:12At 116. 117.
0:09:12 > 0:09:15Is it 118 now? 118, and thank you.
0:09:15 > 0:09:17And 119, is it now?
0:09:17 > 0:09:21At 119, I'm bid. Thank you, madam. Will you fill that up for me?
0:09:21 > 0:09:23At 120?
0:09:23 > 0:09:26And thank you. At 120, I'm bid.
0:09:26 > 0:09:29At 120, I'm bid. Is it 121 now?
0:09:29 > 0:09:32At £120,000.
0:09:32 > 0:09:37I'm putting this on sale to you for £120,000.
0:09:37 > 0:09:40For the first time, 120,000,
0:09:40 > 0:09:44for the second time, for the third and last time,
0:09:44 > 0:09:47at £120,000.
0:09:49 > 0:09:53That successful bid of 120,000 came from Tanvir.
0:09:54 > 0:09:57She has a Masters in construction,
0:09:57 > 0:09:59has worked as a quantity surveyor
0:09:59 > 0:10:02and plans to fit this renovation in before starting a new job
0:10:02 > 0:10:06as a project engineer for a major car manufacturer.
0:10:06 > 0:10:08Go, Tanvir.
0:10:09 > 0:10:12- Tanvir, lovely to meet you.- Nice to meet you, too.- Congratulations.
0:10:12 > 0:10:15- Thank you.- Tell me why you wanted to buy this place.
0:10:15 > 0:10:19I was looking at getting into property developing
0:10:19 > 0:10:21and I saw this in the brochure.
0:10:21 > 0:10:24I was quite interested in it so it just went from there.
0:10:24 > 0:10:27So, why this particular house then?
0:10:27 > 0:10:28There was no particular reason really.
0:10:28 > 0:10:30I just went through the auction booklet
0:10:30 > 0:10:32and saw a few that I was interested in.
0:10:32 > 0:10:35And when I went to the auction, this was the one that I got.
0:10:35 > 0:10:36- And had you seen it beforehand? - No, I hadn't.
0:10:36 > 0:10:37HE GASPS
0:10:37 > 0:10:40- Why?- I just didn't get time, to be honest.
0:10:40 > 0:10:42I was at work. But my auntie came to see it.
0:10:42 > 0:10:46- OK, and what did she say about it? - Well, this was her favourite anyway.
0:10:46 > 0:10:49There was a couple she was interested in, but she liked this one.
0:10:49 > 0:10:52'Tanvir and her aunt, who's financing the purchase,
0:10:52 > 0:10:55'are hoping that this will be the first renovation of many
0:10:55 > 0:10:57'in a joint business venture
0:10:57 > 0:11:00'so it was good that one of them viewed the property.
0:11:00 > 0:11:05'However, there is that second Hammer golden rule.'
0:11:05 > 0:11:09- What about the legal pack? - A big no-no. We didn't read it.
0:11:09 > 0:11:10HE GASPS
0:11:10 > 0:11:12- You didn't read the legal pack?- No.
0:11:12 > 0:11:15- And we had a bit of a problem with that as well.- Tell me more.
0:11:15 > 0:11:17We bought the freehold on the property
0:11:17 > 0:11:21but there was an unregistered lease on it.
0:11:21 > 0:11:25Hmm, so what has your solicitor found out about that
0:11:25 > 0:11:27and what's your position right now?
0:11:27 > 0:11:30We put in an application to Land Registry to have the lease removed
0:11:30 > 0:11:33with all the evidence that they needed to show that the house
0:11:33 > 0:11:37is empty etc, but they've taken that off since, so we've been quite lucky.
0:11:37 > 0:11:40- So it's gone now?- It's gone now. - So everything is fine?- Yes.
0:11:40 > 0:11:43- Were you relying on a mortgage?- No. - Because if you had been...
0:11:43 > 0:11:44I would have been in trouble.
0:11:44 > 0:11:47- You'd have been in big trouble, wouldn't you?- Yes.
0:11:47 > 0:11:49So next time definitely read the legal pack.
0:11:51 > 0:11:54Well, a lucky escape for Tanvir this time.
0:11:54 > 0:11:56I do hope she's true to her word
0:11:56 > 0:12:00and makes any future auction purchases with her eyes wide open.
0:12:02 > 0:12:04So, tell me, what are you going to do to the place?
0:12:04 > 0:12:09Just the usual property developing stuff like full plaster,
0:12:09 > 0:12:13kitchen, bathroom, new floors, fireplaces.
0:12:13 > 0:12:15Possibly thinking of building the wall back in to make
0:12:15 > 0:12:18- it into a hallway and two separate rooms.- Right.
0:12:18 > 0:12:22- So that's the plan and maybe move the bathroom upstairs.- OK.
0:12:22 > 0:12:25And what about the very top floor?
0:12:25 > 0:12:27That's included within all of that.
0:12:27 > 0:12:29- I'm going to keep the en suite in there.- It's nice.
0:12:29 > 0:12:32- I like that top floor. - Yeah, it's nice.- Really pleasant.
0:12:32 > 0:12:36- And then the unusual sunken bath. - Yeah, that's going.
0:12:36 > 0:12:38I don't think anyone is really going to like that one.
0:12:38 > 0:12:40What's that room going to be then?
0:12:40 > 0:12:41I'm going to knock the wall through
0:12:41 > 0:12:45- and make that into a big sort of open-plan kitchen diner area.- Right.
0:12:45 > 0:12:48As long as it doesn't cost too much, that's the plan.
0:12:49 > 0:12:53Tanvir will project manage and her healthy budget of £25,000 to £30,000
0:12:53 > 0:12:56includes labour costs for the job.
0:12:57 > 0:13:00She hopes she can get this mid-terrace turnaround
0:13:00 > 0:13:02in eight to ten weeks.
0:13:02 > 0:13:04She plans to put it up for sale
0:13:04 > 0:13:07before starting her new full-time job.
0:13:07 > 0:13:10But it's not all work and no play for her.
0:13:11 > 0:13:14What about other stuff you've done outside of work?
0:13:14 > 0:13:17I've done a little bit of travelling.
0:13:17 > 0:13:19I've gone to Base Camp, Mount Everest.
0:13:19 > 0:13:22A little bit of travelling?
0:13:22 > 0:13:26"Majorca. I went to France. Oh, no, I went to Everest Base Camp."
0:13:26 > 0:13:28Yeah, it was tough. It was really good, though.
0:13:28 > 0:13:31I'd recommend it to everyone. Really good experience.
0:13:31 > 0:13:33You didn't go any further? Not tempted to climb the mountain?
0:13:33 > 0:13:37No, it was hard enough to Base Camp. Yeah, it was really good, though.
0:13:37 > 0:13:40- Listen, congratulations. Good luck with it.- Thank you very much.
0:13:40 > 0:13:43- I look forward to seeing how you get on.- Thank you.
0:13:43 > 0:13:48Well, things could have gone horribly wrong for Tanvir there
0:13:48 > 0:13:51regarding the legal status of this property,
0:13:51 > 0:13:55but, thankfully, the issues have been resolved
0:13:55 > 0:13:59but definitely lessons to be learned for all.
0:13:59 > 0:14:02Just a few mountains left to climb sorting this place out.
0:14:02 > 0:14:06You can find out how she gets on later in the show.
0:14:11 > 0:14:13Southfields in London, heard of it?
0:14:13 > 0:14:17Well, not many have but that's changing.
0:14:17 > 0:14:19People are falling for its charm and potential
0:14:19 > 0:14:23and property prices are rising in line with its popularity.
0:14:25 > 0:14:28It's easy to see why. Southfields is close to Wimbledon.
0:14:28 > 0:14:30There are some lovely houses
0:14:30 > 0:14:33and I think I may have stumbled upon a bargain here.
0:14:36 > 0:14:38The property I'm here to see
0:14:38 > 0:14:43is in the less expensive part of Southfields but am I disappointed?
0:14:43 > 0:14:45No, I am not, and you know why?
0:14:45 > 0:14:48Because this part of the area is much more likely to
0:14:48 > 0:14:52rise in value as families, priced out of the trendy part,
0:14:52 > 0:14:55look for cheaper homes and it's families that I have in mind
0:14:55 > 0:14:58because the property I'm here to see is a house.
0:14:58 > 0:15:01It had a guide price of 430,000.
0:15:01 > 0:15:06It's got three bedrooms and a rather bad case of pebble dash.
0:15:06 > 0:15:08Let's go and have a look around.
0:15:12 > 0:15:14Judging by the giant pile of rubble bags,
0:15:14 > 0:15:17I'm guessing the new owners have already started work.
0:15:21 > 0:15:24It is a dusty, dirty mess in here
0:15:24 > 0:15:27so I think we should just work through room by room
0:15:27 > 0:15:29in this building.
0:15:29 > 0:15:32Now, reception room here, if you can see through the bags of rubble
0:15:32 > 0:15:34and, believe me, there are so many of them,
0:15:34 > 0:15:36you've got quite a nice big space.
0:15:36 > 0:15:37A few features lurking.
0:15:37 > 0:15:39You've got a ceiling rose and some cornicing.
0:15:39 > 0:15:42Second reception room, again really good space.
0:15:42 > 0:15:47You've got lovely old spindles here, some under-stairs storage.
0:15:47 > 0:15:49This is a nice traditional terraced house
0:15:49 > 0:15:52and right at the back here, you've got this wonderful,
0:15:52 > 0:15:56wonderful space which could be incorporated as part of the kitchen.
0:15:56 > 0:15:57That's what I would do.
0:15:57 > 0:16:01Knock through here and have a nice, big, open-plan kitchen diner
0:16:01 > 0:16:03with access to the garden.
0:16:03 > 0:16:05I'm going to have a look.
0:16:06 > 0:16:09It's only a small garden, but it's all yours
0:16:09 > 0:16:13and, once cleared, would be perfect for a table, chairs and a barbecue.
0:16:13 > 0:16:17Any garden, whatever its size, is highly prized in London.
0:16:17 > 0:16:20Inside and out, you can tell that the place is tired and old
0:16:20 > 0:16:23and probably hasn't been updated in a number of years.
0:16:23 > 0:16:27But I think there's more space inside than you might expect.
0:16:27 > 0:16:30Follow me upstairs and you'll find that this property
0:16:30 > 0:16:33takes open-plan to a whole new level.
0:16:33 > 0:16:37So, upstairs becomes more open-plan than ever.
0:16:37 > 0:16:42And that, my friends, is a crack and a half. Now, look at it.
0:16:42 > 0:16:44The rule of thumb would be, if you can get your hand in it,
0:16:44 > 0:16:47this way, alarm bells should be ringing.
0:16:47 > 0:16:51But look, I can get my whole hand in there. It could be old movement.
0:16:51 > 0:16:56This is an old property, but I would certainly get that checked out.
0:16:56 > 0:17:00That would worry me. Now look at this property. It is incredible.
0:17:00 > 0:17:02Now, we've got quite a spacious room
0:17:02 > 0:17:06but the problematic bathroom at the other end of it,
0:17:06 > 0:17:10so straightaway I'm thinking how are we going to get from A to B?
0:17:10 > 0:17:14Well, the obvious thing here would be to put a corridor along here
0:17:14 > 0:17:18but look at the depth of this big old baby here.
0:17:18 > 0:17:20Now we are always going on about
0:17:20 > 0:17:22how hard it is to knock out a chimney breast.
0:17:22 > 0:17:25Look, you can see it goes right up and supports the roof.
0:17:25 > 0:17:29That's a big old job but, as far as I can see,
0:17:29 > 0:17:32this would be the only way to access the bathroom,
0:17:32 > 0:17:37so I think it's fair to say there's a fair bit of work to do upstairs.
0:17:38 > 0:17:42It really is a skeleton up here, so you have to use your imagination.
0:17:42 > 0:17:45A property developer with an eye for a big project would be
0:17:45 > 0:17:49in seventh heaven here as there's so much room to play with.
0:17:49 > 0:17:52The front bedroom spans the full width of the house.
0:17:52 > 0:17:55It would make a lovely space once you've put up some walls
0:17:55 > 0:17:59and the second bedroom behind it is also a good size.
0:17:59 > 0:18:02Sort that bathroom access out and you'd have a family-sized home
0:18:02 > 0:18:05with plenty of space for a growing family,
0:18:05 > 0:18:09as long as that crack doesn't cause too many problems, of course.
0:18:14 > 0:18:17The house has decent proportions, but, you know me,
0:18:17 > 0:18:21I'm always looking to push things a bit further
0:18:21 > 0:18:23and I think you could look at extending out at the back
0:18:23 > 0:18:29to make a big full-width kitchen diner and up into the loft
0:18:29 > 0:18:31and add an extra bedroom and an en suite
0:18:31 > 0:18:35but, before you get giddy with ideas, you've got to consider
0:18:35 > 0:18:38the figures and, although this area is up-and-coming,
0:18:38 > 0:18:40it's not there yet
0:18:40 > 0:18:43and you can't get top dollar for houses around here no matter
0:18:43 > 0:18:47what your sights are, so if you did all that work, you could be at
0:18:47 > 0:18:50risk of only getting back what you spent and there might be a better
0:18:50 > 0:18:54instant return in just renovating the property as it stands, selling
0:18:54 > 0:18:59on and letting the new owners fork out the big bucks in their own time.
0:18:59 > 0:19:02It's all food for thought but one thing's for certain,
0:19:02 > 0:19:06whoever bought this has got plenty more work on their plate.
0:19:06 > 0:19:09# Handful of dust
0:19:09 > 0:19:12# A handful of dust. #
0:19:12 > 0:19:16We asked a local estate agent to brave that dust and rubble
0:19:16 > 0:19:18to tell us what he thought.
0:19:19 > 0:19:23It's a perfect developer's property. It's completely un-modernised.
0:19:23 > 0:19:25You're buying the footprint, which is
0:19:25 > 0:19:26one of the largest footprints you can get.
0:19:26 > 0:19:30Scope to go out the sides, scope to go into the double loft conversion,
0:19:30 > 0:19:31the main loft and the rear loft,
0:19:31 > 0:19:35so it can be a very sizeable house when the developer's finished.
0:19:35 > 0:19:39He also reckons it would be worth doing that extension out the back.
0:19:39 > 0:19:42It would be criminal not to make two large bedrooms
0:19:42 > 0:19:44with a bathroom en suite.
0:19:44 > 0:19:46It would be far, far superior in floor space.
0:19:46 > 0:19:50You're almost going to add more than a third of floor space to the house.
0:19:50 > 0:19:53Therefore, the resale value is going to be a lot higher.
0:19:53 > 0:19:57What would the resale figures be with and without the extension?
0:19:57 > 0:20:01If the property was fully developed in its current shape, it would
0:20:01 > 0:20:03be something in the region of
0:20:03 > 0:20:06535,000 roughly.
0:20:06 > 0:20:09If you did the loft conversion, rear addition and went to town,
0:20:09 > 0:20:11especially with the finish,
0:20:11 > 0:20:14at the moment they're selling for around 620, which is a lot of money.
0:20:14 > 0:20:18And if the extension was done, how much could it let for?
0:20:18 > 0:20:20If it was fully modernised and fully extended,
0:20:20 > 0:20:26the reality is you're looking between £2,200 to £2,300 per calendar month.
0:20:26 > 0:20:29This house has buckets of potential
0:20:29 > 0:20:32and is really a very exciting proposition.
0:20:32 > 0:20:34I think it was a great one to go for.
0:20:34 > 0:20:36Let's see who agreed at the auction.
0:20:37 > 0:20:38Invite your bids, 400.
0:20:38 > 0:20:41Not going below 400. 400, thank you.
0:20:41 > 0:20:44405 anywhere?
0:20:44 > 0:20:46405.
0:20:46 > 0:20:50410, 415, 420.
0:20:50 > 0:20:54416, 417.
0:20:54 > 0:20:56418.
0:20:56 > 0:21:01419, 420.
0:21:01 > 0:21:04421, 422.
0:21:04 > 0:21:08423, 424.
0:21:08 > 0:21:12425, 426.
0:21:12 > 0:21:17427, 428.
0:21:17 > 0:21:23429, 430, 431.
0:21:23 > 0:21:26432.
0:21:26 > 0:21:30433, 434.
0:21:30 > 0:21:34435, 436.
0:21:34 > 0:21:36437.
0:21:36 > 0:21:41438, new spot. 439. 440.
0:21:41 > 0:21:43440?
0:21:43 > 0:21:46439. First time.
0:21:46 > 0:21:48Second time.
0:21:48 > 0:21:51Third and last time. Have you all done?
0:21:51 > 0:21:54Sold, 439. Well done.
0:21:54 > 0:21:58That successful bid of 439,000 was made by Charlie.
0:22:00 > 0:22:04He's a developer who currently has a portfolio of 13 properties.
0:22:04 > 0:22:07If he looks familiar, that's because he was on the show a while back
0:22:07 > 0:22:10when he bought this place in Streatham.
0:22:10 > 0:22:13# Oh, where could we have met before? #
0:22:13 > 0:22:17He told us then why he wanted to be a property developer.
0:22:17 > 0:22:19Hopefully gives you an early retirement and then you can go
0:22:19 > 0:22:22and sit on a boat somewhere. That's the motivation.
0:22:22 > 0:22:25'Well, he's not retired to a life on the seas just yet.
0:22:25 > 0:22:27'He's still going strong.
0:22:27 > 0:22:31'So let's find out his plan for this, his latest project.'
0:22:31 > 0:22:34- Charlie, we are not strangers. We've met before.- We have, yeah.
0:22:34 > 0:22:38- In Streatham.- We did, yes.- You're still developing, buying at auction.
0:22:38 > 0:22:39Yes, still buzzing.
0:22:39 > 0:22:41I think the market's... It's a good time at the moment, actually.
0:22:41 > 0:22:44I think things have slipped a bit and suddenly it's on the up again.
0:22:44 > 0:22:47So you're still there ready to pounce on the bargains.
0:22:47 > 0:22:49Any bargains. Cover the floor and see what you end up with.
0:22:49 > 0:22:53So tell me about this property. Why did this appeal to you?
0:22:53 > 0:22:55It's in an area I know.
0:22:55 > 0:22:58Really, it was a matter of viewing all the ones that
0:22:58 > 0:23:01seemed in the area I cover and then go to the auction
0:23:01 > 0:23:03and see which one came down to the hammer.
0:23:03 > 0:23:08No particular affiliation to this area, but it's a good house,
0:23:08 > 0:23:09a nice project.
0:23:09 > 0:23:12The last time we met, you weren't passionate about the properties.
0:23:12 > 0:23:14It's all a numbers game for you.
0:23:14 > 0:23:18You put your builders in, they crack on and you walk away with a profit.
0:23:18 > 0:23:21- How is it working these days for you?- Yeah, it's still working well.
0:23:21 > 0:23:22Same team.
0:23:22 > 0:23:25You get to trust them more and more, give them more of a leash
0:23:25 > 0:23:29- and let them go, really.- What's your intention with this property?
0:23:29 > 0:23:32To take it to a top-end house?
0:23:32 > 0:23:34It needs to be a good, cosy family house.
0:23:34 > 0:23:37I don't think we're going to go for the really modern
0:23:37 > 0:23:39sort of blank canvas of a house.
0:23:39 > 0:23:41We're going to add a bit more character to it
0:23:41 > 0:23:43because that's what people want now.
0:23:43 > 0:23:45- Now, you've started work, haven't you?- We have, yes.
0:23:45 > 0:23:48There's been a guy in here just filling his lungs with dust, really.
0:23:48 > 0:23:52- Tell me about it. Me also. - A joy to be here.
0:23:52 > 0:23:54'Charlie also has an estate agency to run
0:23:54 > 0:23:57'so I'm sure his builders won't see him for dust.
0:23:57 > 0:24:01'Actually, it is a joy to be here to see the bare bones of this
0:24:01 > 0:24:04'Victorian building but it makes it hard to imagine what it's
0:24:04 > 0:24:07'going to be like when it's finished.'
0:24:09 > 0:24:11What extent are you going to take this?
0:24:11 > 0:24:13You can go up in the loft, you can extend out the back.
0:24:13 > 0:24:15There is so much you could do here,
0:24:15 > 0:24:17but will it necessarily add the required value?
0:24:17 > 0:24:23For sure, I think in its current layout, it's a two/three-bed house.
0:24:23 > 0:24:26To get to the family market you need to have a big master bedroom,
0:24:26 > 0:24:28an extra bathroom, so definitely doing the loft.
0:24:28 > 0:24:31Probably not the extension over the back for the bathroom.
0:24:31 > 0:24:35We'll just keep it simple and then we'll have to get planning for a side
0:24:35 > 0:24:38extension, just make a lovely big kitchen/breakfast room at the back.
0:24:38 > 0:24:40Let's talk about the price and do some number crunching.
0:24:40 > 0:24:43So you paid 439,000 for this.
0:24:43 > 0:24:47439, I think we'll probably get away with about 90
0:24:47 > 0:24:49and then hopefully get just over six.
0:24:49 > 0:24:53We've got a good arrangement with the bank on interest so, yeah,
0:24:53 > 0:24:57- it should be a good one.- A big enough profit margin for you, do you think?
0:24:57 > 0:25:00Yeah, for sure, 100%.
0:25:00 > 0:25:02'Charlie seems to have a handle on the figures,
0:25:02 > 0:25:04'but that's only if it all goes to plan.
0:25:04 > 0:25:08'Could that nasty-looking crack cause him grief?'
0:25:08 > 0:25:10So what do you think that is, old movement?
0:25:10 > 0:25:13Old movement, it's definitely old movement.
0:25:13 > 0:25:15There is no sort of new cracks and really,
0:25:15 > 0:25:17it's in the middle of the building.
0:25:17 > 0:25:19The house can't fall out of the terrace. It's mid-terrace.
0:25:19 > 0:25:23I think it's something that can be healed and covered over.
0:25:23 > 0:25:26Charlie, lovely to see you again.
0:25:26 > 0:25:28I can't wait to see how you turn this place around because,
0:25:28 > 0:25:32at the moment, you need rose-coloured spectacles. Take care.
0:25:32 > 0:25:33Thank you.
0:25:33 > 0:25:37So, Charlie seems like a bit of a part-time developer
0:25:37 > 0:25:41but he reaps big-time rewards. That's the way to do it.
0:25:41 > 0:25:44Join me later in the show to see this house finished, developed,
0:25:44 > 0:25:47extended and, hopefully, with some walls.
0:25:48 > 0:25:50'Coming up in Cumbria, from the front,
0:25:50 > 0:25:53'this terrace looks tiny, but...'
0:25:53 > 0:25:55I'm slightly flabbergasted by this place.
0:25:55 > 0:25:57It's got this whole feeling of space.
0:25:59 > 0:26:01In London, we catch up with Charlie
0:26:01 > 0:26:05to find out if he enjoyed his latest property venture.
0:26:05 > 0:26:09Every project's good fun when they're finished and they're sold.
0:26:09 > 0:26:13But first, are the experts impressed with Tanvir's renovation?
0:26:13 > 0:26:16It's a great family house, this one, and they've done a very,
0:26:16 > 0:26:18very good job all the way through.
0:26:23 > 0:26:25Back now to the King's Heath area of Birmingham
0:26:25 > 0:26:29and the not-so-regal splendour of this three-bed mid-terrace.
0:26:31 > 0:26:34Tanvir bought it at auction for 120,000
0:26:34 > 0:26:36and planned to spend eight to ten weeks
0:26:36 > 0:26:39and £25,000 to £30,000 sorting the place out.
0:26:41 > 0:26:43She saw this as a step to becoming something
0:26:43 > 0:26:49of a property developer, assisted by her aunt, who financed the purchase.
0:26:49 > 0:26:52'But these wannabe developers very nearly came
0:26:52 > 0:26:56'unstuck at the first hurdle.'
0:26:56 > 0:26:58What about the legal pack?
0:26:58 > 0:26:59Big no-no, we didn't read it.
0:26:59 > 0:27:02- You didn't read the legal pack?- No.
0:27:02 > 0:27:05And we had a bit of a problem with that, as well.
0:27:05 > 0:27:08'They thought they'd bought the freehold to the property
0:27:08 > 0:27:12'but there turned out to be a lease in place.
0:27:12 > 0:27:15'Luckily for Tanvir, their solicitor managed to sort it all out
0:27:15 > 0:27:17'and work could start at the mid-terrace.'
0:27:19 > 0:27:22Four months after our first visit, we're back in King's Heath to see
0:27:22 > 0:27:26if this former quantity surveyor is now queen of all she surveys.
0:27:29 > 0:27:31# Don't stop me now
0:27:33 > 0:27:35# Don't stop me now
0:27:35 > 0:27:38# Cos I'm having a good time, I'm having a good time
0:27:38 > 0:27:43# I'm a shooting star leaping through the skies like a tiger
0:27:43 > 0:27:45# Defying the laws of gravity
0:27:46 > 0:27:51# A racing car passing by like Lady Godiva
0:27:51 > 0:27:56# I'm gonna go, go, go, there's no stopping me
0:27:56 > 0:27:59# I'm burning through the skies, yeah
0:27:59 > 0:28:03# 200 degrees, it's why they call me Mr Fahrenheit
0:28:03 > 0:28:06# I'm travelling at the speed of light
0:28:06 > 0:28:09# I'm gonna make a supersonic man outta you. #
0:28:10 > 0:28:14Well done, Tanvir. The place now sparkles like the Crown Jewels.
0:28:15 > 0:28:19The new kitchen diner looks really fantastic and, for me,
0:28:19 > 0:28:22it's a huge relief to see the Graeco-Roman sunken bath
0:28:22 > 0:28:24consigned to the annals of history.
0:28:25 > 0:28:29The way the kitchen now opens out onto a proper garden rather
0:28:29 > 0:28:33than an overgrown wilderness could be the icing on the cake.
0:28:33 > 0:28:37But the other changes on the ground floor work really well, too.
0:28:37 > 0:28:41So, in this room we've separated the front room from the hallway
0:28:41 > 0:28:43by building this wall.
0:28:43 > 0:28:48And over here we originally had a gap in the wall which now has been
0:28:48 > 0:28:51filled in and separated the front room to the back room.
0:28:51 > 0:28:55The main focus in this room is this new fireplace.
0:28:55 > 0:28:58I've kept the original hearth which I think is quite nice
0:28:58 > 0:29:03and I've got a new wooden mantelpiece and a central cast-iron piece.
0:29:03 > 0:29:07Overall, I'm really happy with the way this room has turned out.
0:29:08 > 0:29:11Up the stairs, and Tanvir's been busy here too,
0:29:11 > 0:29:14sacrificing half of one of the three bedrooms
0:29:14 > 0:29:17to create a new family bathroom.
0:29:18 > 0:29:21I don't personally like having the bathroom downstairs
0:29:21 > 0:29:23but I had a couple of agents in beforehand
0:29:23 > 0:29:27and they said it might be better to bring it up as well.
0:29:27 > 0:29:29And also I didn't want to lose a bedroom upstairs
0:29:29 > 0:29:34so, rather than converting a whole bedroom into a bathroom,
0:29:34 > 0:29:39quite a large bathroom, that's why I sectioned off one of the bedrooms
0:29:39 > 0:29:42and made it smaller, into a single room, and fitted the bathroom in.
0:29:44 > 0:29:47The old second bedroom is now just a single,
0:29:47 > 0:29:51but moving the bathroom upstairs works really well.
0:29:51 > 0:29:54Tanvir has also made changes to the layout of the master bedroom,
0:29:54 > 0:29:58removing the small en suite that was there.
0:29:58 > 0:30:01I think that was sensible as, when you take into account
0:30:01 > 0:30:03the refurbished en suite in the attic room,
0:30:03 > 0:30:07this mid-terrace is well equipped in the bathroom department.
0:30:08 > 0:30:11Tanvir's gone over her eight-to-ten-week timescale,
0:30:11 > 0:30:13but not by much.
0:30:13 > 0:30:16The slight delay was partly due to the theft of the gas meter
0:30:16 > 0:30:18from outside the front of the house.
0:30:18 > 0:30:23How has she fared with her £25,000-£30,000 budget?
0:30:23 > 0:30:25I haven't fully calculated at the moment,
0:30:25 > 0:30:30but it's come to about 32-33,000, which is a little bit over my budget,
0:30:30 > 0:30:33but I've gone for a higher-spec finish on it.
0:30:33 > 0:30:36I think hoping to make a profit on it,
0:30:36 > 0:30:39it's still within what I thought was reasonable.
0:30:41 > 0:30:45If we call Tanvir's spend here 33,000, that means her total
0:30:45 > 0:30:49outlay, including purchase price, comes to 153 grand.
0:30:51 > 0:30:53We asked two local property experts for their thoughts
0:30:53 > 0:30:56on the refurbished mid-terrace.
0:30:58 > 0:31:01It's clean, it's bright, it's very spacious.
0:31:01 > 0:31:03It's a great family house, this one,
0:31:03 > 0:31:06and they've done a very, very good job all the way through.
0:31:06 > 0:31:09There's high-quality fixtures in the kitchen and bathroom
0:31:09 > 0:31:11and it's a great family house.
0:31:11 > 0:31:15My first impressions of the property is that it's been completed
0:31:15 > 0:31:17to a very high standard.
0:31:17 > 0:31:20I'm impressed with the level of work that's been carried out.
0:31:20 > 0:31:24What could this place earn if rented out?
0:31:25 > 0:31:29This property would rent for around £800 per calendar month.
0:31:29 > 0:31:32This property could rent for approximately £850-£900
0:31:32 > 0:31:35per calendar month.
0:31:35 > 0:31:37Those rental values would give Tanvir
0:31:37 > 0:31:40a yield of between 6.5% and 7%,
0:31:40 > 0:31:43which is really pretty healthy.
0:31:43 > 0:31:46But what about her preferred option, selling the property on?
0:31:48 > 0:31:51I would put this property on the market for around £200,000.
0:31:51 > 0:31:55This property would resale for somewhere in the region of £225,000.
0:31:55 > 0:31:59Wow, that's great. That's more than I expected. So I'm happy with that.
0:32:02 > 0:32:04That really is great news.
0:32:04 > 0:32:06Tanvir could be looking at a profit before tax
0:32:06 > 0:32:10and expenses of between £47,000 and £72,000.
0:32:11 > 0:32:16Now, she's recently started a new job with a major car manufacturer,
0:32:16 > 0:32:20so will she and her aunt be heading back to an auction any time soon?
0:32:21 > 0:32:25I definitely would buy a property at auction again, however,
0:32:25 > 0:32:27on this occasion I'd definitely read the legal pack
0:32:27 > 0:32:29and have a look at the property beforehand.
0:32:29 > 0:32:34And since filming, she's sold it for 205,000, a profit of around 52,000.
0:32:38 > 0:32:43This is Longtown in Cumbria, just a few miles from the Scottish border.
0:32:43 > 0:32:46# South of the border. #
0:32:48 > 0:32:49It's farming country around here,
0:32:49 > 0:32:52but there's also lots of local industry
0:32:52 > 0:32:55and all the amenities you're likely to need right here in the town.
0:32:55 > 0:32:59Oh, and if you did fancy eloping with your sweetheart,
0:32:59 > 0:33:02it's only five miles from Gretna Green.
0:33:02 > 0:33:05So, will the property I'm here to see turn out to be a marriage
0:33:05 > 0:33:07made in heaven for the person who bought it?
0:33:07 > 0:33:10It certainly sounds all right from the auction catalogue.
0:33:10 > 0:33:14£40,000 was the guide price. Two-bedroomed, mid-terrace.
0:33:14 > 0:33:17Let's take a look.
0:33:17 > 0:33:19Nice double-glazed front door, which is a good start.
0:33:19 > 0:33:22Keep the cold out, and then as you walk inside,
0:33:22 > 0:33:24straightaway a really nice feeling about this house,
0:33:24 > 0:33:27I don't know why, but decent-sized corridor here.
0:33:27 > 0:33:30You've got this little archway above the stairs leading up to the
0:33:30 > 0:33:34bedrooms, which is good. Standard layout, in some ways.
0:33:34 > 0:33:36Living room there. Gas fire.
0:33:36 > 0:33:38I'd like to open it up into a real fire perhaps, or certainly
0:33:38 > 0:33:42improve that and maybe modify that whole fireplace surround a bit.
0:33:42 > 0:33:44Then through here to the kitchen.
0:33:44 > 0:33:48Before you get there, though, there's quite an interesting place.
0:33:48 > 0:33:50The loo is actually there, it's downstairs.
0:33:50 > 0:33:52It's got a bath in there,
0:33:52 > 0:33:55however, of all places it could be, I've seen worse.
0:33:57 > 0:34:00Ideally upstairs, obviously, but maybe we can live with that.
0:34:00 > 0:34:02Then through into this kitchen area.
0:34:02 > 0:34:05This is a really nice surprise cos not only have you got this bit,
0:34:05 > 0:34:08which I imagine was the original part of the kitchen,
0:34:08 > 0:34:11but this bit, which is in the extension and it gives
0:34:11 > 0:34:14a really nice open-plan area
0:34:14 > 0:34:17which is great for families or whatever.
0:34:17 > 0:34:19Yes, it need some new units and, yes, it need a bit of better
0:34:19 > 0:34:24lighting and, yes, this and that but, in general, it's great.
0:34:24 > 0:34:26Yes, I really like this place.
0:34:26 > 0:34:28There's a certain charm and character to it.
0:34:28 > 0:34:31Sometimes you do just get a good feeling
0:34:31 > 0:34:34when you walk into a property and this is one of those times.
0:34:34 > 0:34:38Obviously, it needs some love and attention but ignore those cosmetics
0:34:38 > 0:34:42and take it for what it is, and you've got a lovely little place.
0:34:42 > 0:34:46# Don't worry about it, take it as it comes. #
0:34:48 > 0:34:50I'm slightly flabbergasted by this place.
0:34:50 > 0:34:53It's just got this whole feeling of space, even when you just
0:34:53 > 0:34:56walk up the stairs there, it feels really nice and open.
0:34:56 > 0:34:58You've got this little landing area at the top.
0:34:58 > 0:35:01A small bedroom at the back with these built-in cupboards
0:35:01 > 0:35:04although, take those built-in cupboards out and I think that
0:35:04 > 0:35:07would give it even more space and then you come into the front
0:35:07 > 0:35:11of the property here and the master bedroom is absolutely huge.
0:35:11 > 0:35:14Again, built-in cupboards, strip those out and it would be even
0:35:14 > 0:35:17bigger and I'm thinking maybe there's enough space here to
0:35:17 > 0:35:21put in an en suite or move the bathroom from downstairs up here.
0:35:21 > 0:35:24You can do that and not lose too much of this room.
0:35:24 > 0:35:27This really is a house that just keeps on giving.
0:35:28 > 0:35:31An en suite or small family bathroom would be great here
0:35:31 > 0:35:34if this were being bought as a home.
0:35:34 > 0:35:35But, as a rental investment,
0:35:35 > 0:35:38it's unlikely to recoup the costs of doing that.
0:35:38 > 0:35:41There seems to be plenty of space to play with, and outside,
0:35:41 > 0:35:43it's the same story.
0:35:46 > 0:35:48Well, come all the way out through the kitchen
0:35:48 > 0:35:51and, as well as that flat-roof extension, you've got this
0:35:51 > 0:35:55little conservatory, somewhere to grow your tomato plants etc.
0:35:55 > 0:35:59Now, it doesn't look to me like it's been constructed that well
0:35:59 > 0:36:01and, as you can see, it's just sort of tacked onto
0:36:01 > 0:36:04the rear of the property so you may want to do something about that.
0:36:04 > 0:36:07Maybe consider a more sympathetic extension.
0:36:07 > 0:36:09Possibly even two storeys.
0:36:09 > 0:36:11What we have got, which is quite a surprise, is a really
0:36:11 > 0:36:16nice-sized rear garden and it's all enclosed in this big wall.
0:36:16 > 0:36:18It almost feels like one of those old-fashioned Victorian
0:36:18 > 0:36:19walled gardens.
0:36:19 > 0:36:23A couple of really useful, or even just one really useful
0:36:23 > 0:36:26outbuilding and lots of space to do stuff in.
0:36:26 > 0:36:29The real additional bonus that I wasn't expecting.
0:36:29 > 0:36:31There's so much potential here
0:36:31 > 0:36:35and this walled garden only adds to its charms for me.
0:36:37 > 0:36:40# I know a wall when I see one
0:36:40 > 0:36:44# And I'm looking at one right now. #
0:36:45 > 0:36:48At that guide price of £40,000 plus,
0:36:48 > 0:36:52I'm convinced that you're really getting a lot for your money here.
0:36:52 > 0:36:55But does a local property expert agree?
0:36:55 > 0:36:58We invited one along to find out.
0:36:58 > 0:37:01It's a good property. Perfect family home.
0:37:01 > 0:37:05If this was my property, I would strip it right back to the walls,
0:37:05 > 0:37:08take all the wood chip off the walls, kitchen out, bathroom out
0:37:08 > 0:37:09and basically start again.
0:37:09 > 0:37:14If I was a landlord, I would probably spend a little less
0:37:14 > 0:37:18and come in and give it a real good clean-up,
0:37:18 > 0:37:20redecorate and make sure everything was good
0:37:20 > 0:37:23and then you can turn it pretty much right round, new carpets,
0:37:23 > 0:37:25that sort of stuff and turn it right round
0:37:25 > 0:37:28and get a tenant in here and take it from there really.
0:37:30 > 0:37:33If it did get some interest on the rental market, how much,
0:37:33 > 0:37:36once renovated, could it fetch?
0:37:36 > 0:37:38If this property came to the rental market
0:37:38 > 0:37:40I could see it fetching
0:37:40 > 0:37:43about £450 per calendar month.
0:37:43 > 0:37:47What about if the new owner decided to sell it?
0:37:47 > 0:37:51If this property was refurbished to a high standard,
0:37:51 > 0:37:55I would market it somewhere between 95 and £100,000.
0:37:55 > 0:37:58You never know quite what you're going to find in a house like this.
0:37:58 > 0:38:01From the outside, a fairly standard terrace,
0:38:01 > 0:38:04but walk through that front door and it does have
0:38:04 > 0:38:08a lot of additional things going for it so, yeah, good one to go for.
0:38:08 > 0:38:12Let's see who agreed when it went under the hammer.
0:38:12 > 0:38:15Who's going to be the first? What shall we say for this one?
0:38:15 > 0:38:18Shall we start at 40?
0:38:18 > 0:38:2140. And one.
0:38:21 > 0:38:24One I've got. 42. 43.
0:38:24 > 0:38:26Yes, you're going to do it at £43,000.
0:38:26 > 0:38:2944, madam. 44, I've got.
0:38:29 > 0:38:3245. Can you at 45?
0:38:32 > 0:38:34Yes, you can. 46.
0:38:34 > 0:38:3747. 47, may I say?
0:38:37 > 0:38:39Is it too early for halves?
0:38:39 > 0:38:4146 and a half.
0:38:41 > 0:38:4347. And a half?
0:38:43 > 0:38:45Well, it may be a little early for halves
0:38:45 > 0:38:48because it went up slowly but surely for another few minutes.
0:38:48 > 0:38:53Let's join it £17,000 later. That's certainly a lot more halves.
0:38:53 > 0:38:55At £65,000, seated.
0:38:55 > 0:38:5865 and a half. 66.
0:38:59 > 0:39:0466, I've got. 66 and a half. 67. 67 and a half.
0:39:04 > 0:39:0868. And a half. 69.
0:39:08 > 0:39:1169 and a half. 70.
0:39:11 > 0:39:14And a half.
0:39:14 > 0:39:17Shake of the head. It's with you at 70.
0:39:17 > 0:39:18First time.
0:39:18 > 0:39:23£70,000, and a half. 71.
0:39:23 > 0:39:2771 and a half, back in. 72.
0:39:27 > 0:39:29And a half.
0:39:29 > 0:39:33Thinking about it. 72,000, back with you, madam.
0:39:33 > 0:39:3472 and a half.
0:39:36 > 0:39:40Shake of the head. With you, sir, at £72,500.
0:39:40 > 0:39:44At 72 and a half, first time.
0:39:44 > 0:39:47At 72 and a half, second time.
0:39:47 > 0:39:49All done, all out.
0:39:49 > 0:39:51Bid? 73.
0:39:52 > 0:39:55And a half? Shake of the head.
0:39:55 > 0:39:58At £72,500, then.
0:39:58 > 0:40:01Sorry, 73, my fault. Can't count.
0:40:01 > 0:40:05Going first time. 73, second time.
0:40:05 > 0:40:08At £73,000, then, and a half.
0:40:10 > 0:40:12Shake of the head. You are out now.
0:40:12 > 0:40:13First time, second time.
0:40:13 > 0:40:17At £73,500 then, first lot of the day,
0:40:17 > 0:40:20all gone, all-out, selling away.
0:40:20 > 0:40:23Well done, sir.
0:40:23 > 0:40:25That was a game of more than two halves
0:40:25 > 0:40:29and the man with the stamina to last into extra time was John.
0:40:29 > 0:40:33He paid £73,500 for the property,
0:40:33 > 0:40:37well over the £40,000-plus guide price.
0:40:37 > 0:40:38He's a plumbing and heating engineer
0:40:38 > 0:40:42and hopes that this purchase will help secure his future.
0:40:43 > 0:40:46# You got a beautiful future
0:40:46 > 0:40:49# A beautiful future. #
0:40:49 > 0:40:52'I met him at the property to find out more.'
0:40:52 > 0:40:56- John, good to meet you.- Hello. - Congratulations.- Thanks very much.
0:40:56 > 0:40:59Tell me why you wanted to buy this place.
0:40:59 > 0:41:02Basically just sort of, my pension is not very good
0:41:02 > 0:41:06and I thought it would be a good project to start.
0:41:06 > 0:41:10- Right, are you from this area? - Yes, I live four miles from here.
0:41:10 > 0:41:12- Right, so that's why you decided to invest locally?- Yes.
0:41:12 > 0:41:14So why this particular house?
0:41:14 > 0:41:17I just liked the look of the layout and I thought, with the
0:41:17 > 0:41:21condition it was in, I could do a lot for it
0:41:21 > 0:41:24but also keep the costs down.
0:41:24 > 0:41:26- So you can do all the central heating and stuff?- Yes.
0:41:26 > 0:41:29I can do most things. Probably the only thing I can't do is the wiring.
0:41:29 > 0:41:34- Right.- Obviously I'll get an electrician in to do that for us.
0:41:34 > 0:41:37Terrific. And what are the plans for the place then?
0:41:37 > 0:41:41Basically, strip all the wallpaper off
0:41:41 > 0:41:44and see what sort of condition the walls are in.
0:41:44 > 0:41:48If they need to be re-skimmed, re-skim them.
0:41:48 > 0:41:51Put extra sockets in where it's needed.
0:41:51 > 0:41:56Upstairs, create a bathroom out of the big bedroom at the front.
0:41:56 > 0:41:59- So make a slightly smaller large bedroom?- Yes.
0:41:59 > 0:42:01With a bathroom off it.
0:42:01 > 0:42:05- But still keep it at the same number of bedrooms?- Oh, yes.
0:42:05 > 0:42:07So nothing majorly structural them?
0:42:07 > 0:42:10The only part that, at the back of the kitchen there is like
0:42:10 > 0:42:15- a lean-to which I'm going to take down and make a patio area.- Right.
0:42:15 > 0:42:19Cos round the back, when we do get good weather,
0:42:19 > 0:42:21it's a really good sun trap.
0:42:22 > 0:42:24John will do the majority of the work himself
0:42:24 > 0:42:28except for the electrics because that's not a DIY job.
0:42:28 > 0:42:31You need a certified expert for that.
0:42:31 > 0:42:36He has a budget of between £7,000 and £8,000 which,
0:42:36 > 0:42:39given he'll do all the plumbing himself, sounds pretty reasonable.
0:42:41 > 0:42:44And what's the plan then, to keep it or sell it?
0:42:44 > 0:42:46Depends on what it's sort of valued at.
0:42:46 > 0:42:50I would have thought, more or less, I'll be renting it out.
0:42:52 > 0:42:57- And hopefully go from there and maybe even buy another one.- OK.
0:42:57 > 0:42:59Start a bit of a property portfolio.
0:42:59 > 0:43:04Yeah, just to see what workload this takes on and how it develops
0:43:04 > 0:43:07and then we can see what happens, basically.
0:43:07 > 0:43:09- Well, listen, congratulations. - Thank you.- Good luck with it.
0:43:09 > 0:43:12- OK, thank you.- I look forward to seeing how you get on.
0:43:12 > 0:43:13OK. Lovely.
0:43:13 > 0:43:18I think John's chosen well for his first property investment venture.
0:43:18 > 0:43:21He might be slightly underestimating the amount of work
0:43:21 > 0:43:24to be done, especially if he's only got the evenings and weekends
0:43:24 > 0:43:29to do it in, so will he make that timescale and do it within budget?
0:43:29 > 0:43:31You can find out later in the show.
0:43:34 > 0:43:35After those properties are done,
0:43:35 > 0:43:37they could be worth a lot more money.
0:43:37 > 0:43:40But have our buyers even got started?
0:43:40 > 0:43:44I hope so, because time is money. Let's go back and find out.
0:43:45 > 0:43:48Now it's back to the desirable area of Southfields
0:43:48 > 0:43:51in London where we saw a mid-terrace with three bedrooms
0:43:51 > 0:43:55and three public rooms with plenty of space for a loft conversion
0:43:55 > 0:43:58and a kitchen extension.
0:43:58 > 0:44:03Property developer Charlie bought it for 439,000 and it sounded as
0:44:03 > 0:44:07though he didn't have a minimalist look in mind for this house.
0:44:09 > 0:44:12So what's your intention with this property?
0:44:12 > 0:44:14To take it to a top-end house?
0:44:14 > 0:44:17It needs to be a good, cosy family house.
0:44:17 > 0:44:20I don't think we're going to go for the really modern
0:44:20 > 0:44:22blank canvas of a house.
0:44:22 > 0:44:23We're going to add a bit more character to it
0:44:23 > 0:44:25because I think that's what people want now.
0:44:25 > 0:44:28He gave himself a budget of around 90,000
0:44:28 > 0:44:32and hoped to get it done in four months ready to sell on.
0:44:32 > 0:44:35We met him a year later at the property to see how he'd got on.
0:44:39 > 0:44:41Well, the pebble dash has been dashed off
0:44:41 > 0:44:46but the rubble out front makes me think work is still going on.
0:44:46 > 0:44:50Let's take a look inside, beginning with the attic conversion.
0:44:57 > 0:44:58Fantastic!
0:44:58 > 0:45:01Charlie has conjured up a magnificent bedroom
0:45:01 > 0:45:05with en-suite shower room.
0:45:05 > 0:45:08The addition of a Juliet balcony brings natural light flooding in.
0:45:12 > 0:45:15On the first floor there are a further three bedrooms,
0:45:15 > 0:45:17with designer radiators and light fittings.
0:45:17 > 0:45:18A nice touch.
0:45:23 > 0:45:27The bathroom has equally stylish fixtures and fittings.
0:45:30 > 0:45:33On the ground level there is still a lot of work to be done
0:45:33 > 0:45:36but I am impressed with his side-return extension which will
0:45:36 > 0:45:39create a wonderful kitchen dining area.
0:45:41 > 0:45:44The extension has been a massive plus.
0:45:44 > 0:45:48Suddenly the space is transformed from being a pokey long corridor
0:45:48 > 0:45:52without light to suddenly feeling like an outside area
0:45:52 > 0:45:56blessed with light, heat and a good place to be.
0:45:57 > 0:46:00The new sloped roof windows are a fabulous touch.
0:46:00 > 0:46:03They certainly let in plenty of light which makes it feel
0:46:03 > 0:46:05even bigger in here.
0:46:05 > 0:46:09This was the only job that Charlie's own building team couldn't
0:46:09 > 0:46:11undertake but unfortunately the contractors
0:46:11 > 0:46:14he hired did not achieve the required results.
0:46:15 > 0:46:19A contract was agreed and they supplied and fitted it
0:46:19 > 0:46:21but they measured it wrong, the frame,
0:46:21 > 0:46:25and they measured the glass wrong and then they broke a piece of glass.
0:46:25 > 0:46:28And the weather has been terrible as well.
0:46:28 > 0:46:30To seal it they needed really fair weather.
0:46:30 > 0:46:35It has been the one delay and the one bit that is out of our control.
0:46:36 > 0:46:37Mm, the only delay?
0:46:44 > 0:46:47Remember, he thought it would take four months
0:46:47 > 0:46:51and here we are a YEAR later. So what happened?
0:46:51 > 0:46:55We didn't start here until I think October, November time,
0:46:55 > 0:46:58because we had other bits going on. And so...
0:46:58 > 0:47:02No, it has all gone well and everything is in-house
0:47:02 > 0:47:04apart from the glazed roof.
0:47:05 > 0:47:08So a late start and problems with the roof have meant
0:47:08 > 0:47:12he's not quite finished. But Charlie doesn't seem too fazed.
0:47:12 > 0:47:16Originally, he aimed to spend 90,000 on the work.
0:47:16 > 0:47:20So has that plan gone out of the window along with the schedule?
0:47:20 > 0:47:25We've already spent 85 so far but it will probably be 110,
0:47:25 > 0:47:27I expect, by the time we finish.
0:47:27 > 0:47:31Charlie was keen that this would be a family home, rather than
0:47:31 > 0:47:35a glossy showpiece, and I think he has gone some way to achieving that.
0:47:35 > 0:47:38It's certainly more practical for modern living.
0:47:39 > 0:47:43I think we've retained a little bit of character albeit by cheating.
0:47:43 > 0:47:47We put plastic sliding sashes in rather than wooden sashes.
0:47:47 > 0:47:49It saves money but still looks stylish.
0:47:49 > 0:47:53We've got a few fireplaces going in that aren't here yet.
0:47:53 > 0:47:57I think we've managed to put a bit of character into it. It's important.
0:47:57 > 0:48:01Charlie's planning to sell on when he eventually finishes the work
0:48:01 > 0:48:04so let's find out how much value has been added.
0:48:04 > 0:48:06We asked two local property experts
0:48:06 > 0:48:10to take a look and give us their thoughts.
0:48:10 > 0:48:12It's expanded to full potential.
0:48:12 > 0:48:13It's got four decent bedrooms.
0:48:13 > 0:48:16The standard of the bathrooms are very good.
0:48:16 > 0:48:18The kitchen will appeal to a lot of people
0:48:18 > 0:48:21because of the way he's opened up space. So he's done a good job.
0:48:21 > 0:48:24I think the house is a great house.
0:48:24 > 0:48:27I think the owner has done a great job in terms of the refurbishment.
0:48:27 > 0:48:30The quality of the finish is of a really good standard.
0:48:30 > 0:48:32I think the kitchen he's expanded to the side.
0:48:32 > 0:48:35He is going for modern, open-plan living,
0:48:35 > 0:48:37so the kitchen will be the style that people require.
0:48:37 > 0:48:39You bring the living area to the back of the house.
0:48:39 > 0:48:41That's what people are looking for nowadays.
0:48:41 > 0:48:45I think the loft space is great. It is really spacious up there.
0:48:45 > 0:48:49I also think with the added benefit of the en suite it really works.
0:48:49 > 0:48:51By the sound of it, perhaps taking a bit longer
0:48:51 > 0:48:54for the build hasn't been a bad thing.
0:48:54 > 0:48:57Since we came a year ago the market has been very busy.
0:48:57 > 0:49:00There's a lot of demand and very few properties to offer.
0:49:00 > 0:49:04So the prices have spiralled. It's gone up faster than before 2007.
0:49:04 > 0:49:07We are effectively looking at about almost a 15% increase
0:49:07 > 0:49:10on last year, even if nothing had been done to the house.
0:49:10 > 0:49:13That will help the client get his full profit on the end of the deal.
0:49:13 > 0:49:18Well, didn't I say this area was becoming increasingly popular?
0:49:18 > 0:49:21Charlie paid £439,000 for the property
0:49:21 > 0:49:25and reckons on a total refurbishment cost of 110,000,
0:49:25 > 0:49:28bringing his total outlay to £549,000.
0:49:31 > 0:49:35I think the house would definitely achieve an asking price
0:49:35 > 0:49:42of £725,000, with a view of taking anything sort of north of £700,000.
0:49:42 > 0:49:45I'd put it on for £735,000.
0:49:45 > 0:49:50That top figure of £735,000 means Charlie could take away
0:49:50 > 0:49:53a fantastic profit of 186,000,
0:49:53 > 0:49:58minus tax and expenses, of course.
0:49:58 > 0:50:02I was thinking in the region of 680-720, so spot-on.
0:50:02 > 0:50:04Probably a little bit more than I thought.
0:50:06 > 0:50:08So it is a great return for his year's work.
0:50:08 > 0:50:11Charlie's property-developing career is definitely
0:50:11 > 0:50:14going from strength to strength. Is he enjoying it?
0:50:14 > 0:50:18Every project is good fun when they are finished and they are sold!
0:50:23 > 0:50:25Back to Cumbria now where we saw this two-bed terrace
0:50:25 > 0:50:30sell at a lengthy auction for £73,500.
0:50:30 > 0:50:34John, a self-employed plumbing and heating engineer, was hoping
0:50:34 > 0:50:37the property might plug a hole in his pension.
0:50:37 > 0:50:41He was going to do the work in his spare time.
0:50:41 > 0:50:43So why this particular house?
0:50:43 > 0:50:47I just liked the look of the layout and I thought with the condition
0:50:47 > 0:50:52it was in, I could do a lot for it but also keep the cost down.
0:50:52 > 0:50:55So you can do all the central heating and stuff?
0:50:55 > 0:50:56I can do most things.
0:50:56 > 0:50:58Probably the only thing I can't do is the wiring
0:50:58 > 0:51:03so I would get an electrician in to do that for us.
0:51:04 > 0:51:08He had a long list of work to do to bring this house up to a good rental standard.
0:51:08 > 0:51:11Let's have a look nine months on to see what he has been up to.
0:51:16 > 0:51:19John has certainly achieved great things in the kitchen.
0:51:19 > 0:51:23Long gone is that shabby, dated one.
0:51:23 > 0:51:25Now say hello to a modern, stylish look.
0:51:27 > 0:51:29The front room has lost that '60s feeling
0:51:29 > 0:51:33and now has a trendy new wall-mounted fire.
0:51:36 > 0:51:39Upstairs, the two bedrooms have been re-plastered and decorated,
0:51:39 > 0:51:41resulting in a clean and fresh feel.
0:51:43 > 0:51:46A new combi boiler and radiators were fitted
0:51:46 > 0:51:50and John has put his skills to good use in the downstairs bathroom...
0:51:53 > 0:51:56..while upstairs, he has created a good-sized family bathroom.
0:51:58 > 0:52:02The reason I decided to move the bathroom
0:52:02 > 0:52:06was because you couldn't really accommodate a shower in the bath
0:52:06 > 0:52:09because the ceiling height was too low.
0:52:09 > 0:52:15And the big bedroom upstairs was basically waiting to be altered.
0:52:15 > 0:52:18So I took a part of the big bedroom off
0:52:18 > 0:52:21and put a new bathroom suite in with a built-in shower.
0:52:21 > 0:52:24It's a much more convenient convenience to have up here,
0:52:24 > 0:52:30but there was some structural work John decided not to go ahead with.
0:52:30 > 0:52:34Originally I was going to take the conservatory down.
0:52:34 > 0:52:35To me it was an eyesore.
0:52:35 > 0:52:39And I realised it was another room so I have renewed it in plastic.
0:52:39 > 0:52:42Haven't quite finished it yet.
0:52:42 > 0:52:46There's a new flat roof to go on and the ceiling has got to be boarded.
0:52:48 > 0:52:52One thing I loved about this house was the quirky walled garden
0:52:52 > 0:52:56and this little space is a great place to enjoy it.
0:52:56 > 0:52:59In the summer they could have their breakfast in here.
0:52:59 > 0:53:03Or they could just use it as an extra cloakroom or storage room.
0:53:03 > 0:53:07But I think it's just a nice, bright room that people will enjoy.
0:53:07 > 0:53:11Remember, this is John's first property venture,
0:53:11 > 0:53:14so he is on a bit of a learning curve.
0:53:14 > 0:53:16You certainly can't fault the workmanship here,
0:53:16 > 0:53:21but there has been one problematic area, that timescale.
0:53:21 > 0:53:26Originally, he had hoped to get this done in 12 to 14 weeks. However...
0:53:26 > 0:53:30It probably took us probably longer than what I had expected,
0:53:30 > 0:53:33because I was only doing it at weekends.
0:53:33 > 0:53:36It has took us just over nine months.
0:53:37 > 0:53:39Luckily, John hasn't had to rush
0:53:39 > 0:53:43but an over-running schedule can have a big impact financially.
0:53:43 > 0:53:47Not only are you shelling out money, you are not getting any income,
0:53:47 > 0:53:51so it is vital to be realistic about how long things might take.
0:53:52 > 0:53:53# Gee, ain't it funny
0:53:56 > 0:54:01# How time slips away... #
0:54:02 > 0:54:06So the timescale might have taken a hit but what about the budget?
0:54:08 > 0:54:13My original budget was round about, I think it was 8,500,
0:54:13 > 0:54:17which...it's gone up.
0:54:17 > 0:54:21I think at the moment it's round about 11,500.
0:54:22 > 0:54:24Even though he's not quite finished,
0:54:24 > 0:54:27he's already drummed up some interest.
0:54:27 > 0:54:31I've had a few people inquire about renting it.
0:54:31 > 0:54:35So once I get it all finished, I'll make a decision then
0:54:35 > 0:54:38whether I do rent it or sell it.
0:54:38 > 0:54:41At the moment, I think I will rent it for the time being.
0:54:42 > 0:54:45But will some figures change his mind?
0:54:45 > 0:54:48We invited two local estate agents to give us their opinions,
0:54:48 > 0:54:52including the one who saw the property before.
0:54:52 > 0:54:53He's done a really good job.
0:54:53 > 0:54:57It's very nice from top to bottom, so very well done out.
0:54:57 > 0:55:00I think the kitchen dining room works really well.
0:55:00 > 0:55:05It is a good-sized room which is what most buyers are now looking for.
0:55:05 > 0:55:06The whole layout is very good.
0:55:06 > 0:55:09He's brought the bathroom from downstairs to upstairs.
0:55:09 > 0:55:11Cut a piece off a very large bedroom he had before
0:55:11 > 0:55:13but that works very well.
0:55:13 > 0:55:17Still got two good-sized bathrooms and a four-piece bathroom suite.
0:55:17 > 0:55:21John bought this house for £73,500 and spent
0:55:21 > 0:55:27£11,500 on the renovation, bringing his total investment to 85,000.
0:55:28 > 0:55:30How much could it sell for?
0:55:31 > 0:55:36In the current market I would market this property for £94,995.
0:55:36 > 0:55:39I would suggest in the current market we would look to
0:55:39 > 0:55:44market at £95,000, looking to achieve offers in the region of £90,000.
0:55:47 > 0:55:52That top valuation of 95,000 would give John a profit of 10,000,
0:55:52 > 0:55:55before he pays any taxes, fees and expenses.
0:55:56 > 0:55:58What does he think of that?
0:55:58 > 0:56:03I thought it could be maybe slightly higher but it's OK, that.
0:56:03 > 0:56:06John was already favouring letting the house
0:56:06 > 0:56:09so how much could that achieve?
0:56:10 > 0:56:13I would expect this property to achieve between 400,
0:56:13 > 0:56:15about £450 per calendar month.
0:56:15 > 0:56:21I would recommend the property was rented at £425 per calendar month.
0:56:21 > 0:56:23Yeah, that's very good as well.
0:56:23 > 0:56:27I was thinking more in the 400 bracket but that is a bonus.
0:56:29 > 0:56:33The middle rental of £425 per calendar month would give John
0:56:33 > 0:56:37a very reasonable 6% return to add to his pension pot.
0:56:37 > 0:56:38Is he happy with that?
0:56:40 > 0:56:44I'm pleased that I've done it the way I have,
0:56:44 > 0:56:46because it was worth it in the end.
0:56:46 > 0:56:49Or it will be! Hopefully!
0:56:53 > 0:56:56We'll have plenty more auction stories for you next time.
0:56:56 > 0:56:59And you wouldn't want to miss any of them on Homes Under The Hammer.
0:56:59 > 0:57:02- So, from Martin and me, goodbye.- Goodbye.
0:57:23 > 0:57:26Subtitles by Red Bee Media Ltd