0:00:02 > 0:00:06Buying at auction doesn't mean you're guaranteed a bargain,
0:00:06 > 0:00:10but when the hammer falls, that is the price you're going to pay.
0:00:10 > 0:00:15Whatever sum's reached on the day, that's the value the buyer hopes to improve on.
0:00:15 > 0:00:21Settle down as we bring you more scintillating stories from the auction on Homes Under The Hammer.
0:00:45 > 0:00:49Buying property is one of the biggest commitments you'll ever make
0:00:49 > 0:00:52and in today's market it's vital to do your research.
0:00:52 > 0:00:55Exactly. Buying at auction,
0:00:55 > 0:00:59you are spending thousands of pounds in the blink of an eye.
0:00:59 > 0:01:03- It's important to get it right. - Preparation is the key.
0:01:03 > 0:01:06Let's see if today's bidders were prepared.
0:01:07 > 0:01:11'I'll look round this property in Kent - once I've found my way out of the garden!'
0:01:11 > 0:01:16Clear this up and you'll have the most magical little hideaway.
0:01:17 > 0:01:19'There are some delights for me in London.'
0:01:19 > 0:01:23It really is a treasure when you find a space like this.
0:01:23 > 0:01:26So far, so good. I really like this flat.
0:01:27 > 0:01:31'Then it's off to Cumbria and an old pub with room to manoeuvre.'
0:01:31 > 0:01:34You HAVE got a good space.
0:01:34 > 0:01:37It is on course to be an award-winning development.
0:01:38 > 0:01:40'These properties have been sold at auction.
0:01:40 > 0:01:45'We'll find out who bought them and what they paid when they went under the hammer.'
0:01:45 > 0:01:46Sold.
0:01:50 > 0:01:53I'm in Kent, in the village of Upnor.
0:01:53 > 0:01:57The property I'm here to see is actually in Upper Upnor.
0:01:57 > 0:02:01That's Lower Upnor. Both of them lie on the banks of the Medway.
0:02:01 > 0:02:04It's a conservation area and, you know what?
0:02:04 > 0:02:09It really is absolutely gorgeous!
0:02:11 > 0:02:16# Come to this place The bend in the river
0:02:16 > 0:02:20# Saw in the water The circle of magic
0:02:20 > 0:02:22# Circle of magic
0:02:22 > 0:02:27# A blanket of lilies covered your head... #
0:02:27 > 0:02:29This little village certainly is magical
0:02:29 > 0:02:33and maintains a true sense of old-world charm.
0:02:33 > 0:02:36It's popular with yachting enthusiasts and bird watchers alike,
0:02:36 > 0:02:42and it's easy to see why it's a highly sought-after area to live.
0:02:43 > 0:02:48This place just oozes character. It's got a cobblestone street.
0:02:48 > 0:02:51They still deliver milk bottles on the doorstep. It's glorious.
0:02:51 > 0:02:56Properties here don't come up for auction that often. So, what did?
0:02:56 > 0:02:58It was a Grade II listed mid-terrace
0:02:58 > 0:03:03at a guide price of £95,000 to £100,000 and this is it.
0:03:03 > 0:03:06If you can see behind this huge great bush or tree,
0:03:06 > 0:03:08there's a very pretty house lurking.
0:03:08 > 0:03:12White Kentish wooden boards on the outside.
0:03:12 > 0:03:16What's it going to be like inside? There's only one way to find out.
0:03:18 > 0:03:21Oh! That's interesting! Nice stable door to start off.
0:03:21 > 0:03:24They're quite practical. I like that. Then, wow!
0:03:24 > 0:03:28Fantastic wood-burning stove in a lovely old brick fireplace.
0:03:28 > 0:03:31Original floorboards. It's looking cute.
0:03:31 > 0:03:34What have we got here? Oh, I see.
0:03:34 > 0:03:38A serving hatch through to the kitchen. That looks nice.
0:03:38 > 0:03:42I love this place. Lots of little corridors, nooks and crannies.
0:03:42 > 0:03:45The kitchen, well, it's a bit dated.
0:03:45 > 0:03:48You'd like to see something with lots of character.
0:03:48 > 0:03:51I suppose, in a hotchpotch way, it's got character.
0:03:51 > 0:03:55I don't know. I forgive this. Let's carry on.
0:03:56 > 0:04:02'Something harder to forgive is the layout and how the space is used.
0:04:02 > 0:04:05'The conservatory... Is that even a conservatory?
0:04:05 > 0:04:07'Is it a utility room? What is it?
0:04:07 > 0:04:11'You might want to replace it, but that'll be subject to the red tape
0:04:11 > 0:04:14'that goes with a Grade II building in a conservation area.
0:04:14 > 0:04:17'It might be more user-friendly as a dining room.
0:04:17 > 0:04:21'As it's next to the kitchen, that would make sense.
0:04:21 > 0:04:23'What doesn't make much sense
0:04:23 > 0:04:26'is that the main bathroom is a few steps down from here.
0:04:26 > 0:04:30'So it's not perfect, but I'm still smitten.'
0:04:35 > 0:04:38Before you get carried away with the charm of this place,
0:04:38 > 0:04:40it is useful to take a bit of a reality check.
0:04:40 > 0:04:44Restoring it is going to throw up its fair share of problems
0:04:44 > 0:04:47and we've got the Grade II listed status to contend with,
0:04:47 > 0:04:50which is going to limit what you can do.
0:04:50 > 0:04:53But you have got a property that is very quirky -
0:04:53 > 0:04:55the staircase, for instance.
0:04:55 > 0:04:59There's another staircase leading to the bedroom on the top floor.
0:04:59 > 0:05:03You've got lots of drops to the floor height and low ceilings.
0:05:03 > 0:05:07In terms of structure, you don't know what you'll unearth
0:05:07 > 0:05:09once you start lifting up floorboards.
0:05:09 > 0:05:12Then you've got the windows. They're all fairly shot.
0:05:12 > 0:05:17Because it's listed, you can't just replace them with whatever you want.
0:05:17 > 0:05:20So, lots to consider, but it's one of those houses
0:05:20 > 0:05:25that I think it'd be worth whatever the hassles were.
0:05:27 > 0:05:30'And hassles there will be, no doubt about it.
0:05:30 > 0:05:32'That's practically guaranteed.
0:05:32 > 0:05:36'But what you'll also be guaranteed is a unique characterful property.
0:05:36 > 0:05:41'Conserving character costs money, so you'll need a healthy budget,
0:05:41 > 0:05:44'lots of patience and willingness to work closely
0:05:44 > 0:05:47'with the planning and conservation departments.
0:05:47 > 0:05:51'You'll have to get permission for work on the outside and the inside.
0:05:51 > 0:05:54'The upstairs layout is not without challenges.
0:05:54 > 0:05:56'The top floor bedroom IS big.
0:05:56 > 0:05:59'On the first floor, there are two good-sized bedrooms,
0:05:59 > 0:06:03'one of which has a shower and a loo, but no sink or bath.
0:06:03 > 0:06:08'This could possibly be the family bathroom, so that's welcome news.
0:06:08 > 0:06:10'So much for the inside.'
0:06:13 > 0:06:18You're probably thinking that the only thing this property lacks is a bit of garden.
0:06:18 > 0:06:20Here's an additional surprise!
0:06:20 > 0:06:25Across a shared access area, you come to this.
0:06:25 > 0:06:29Though it's a bit of a jungle, it's a classic secret garden.
0:06:29 > 0:06:32Very typical for properties in this area.
0:06:32 > 0:06:36It goes on and on. I don't know how long it is. At least over 100 feet.
0:06:36 > 0:06:41Clear this up and you'll have the most magical little hideaway,
0:06:41 > 0:06:44just to add... Oh, amazing!
0:06:46 > 0:06:50# There's a petal that isn't torn
0:06:50 > 0:06:54# A heart that will not harden
0:06:54 > 0:06:58# A place that I can be born
0:06:58 > 0:07:02# In my secret garden... #
0:07:03 > 0:07:06'This place has truly won me over.
0:07:06 > 0:07:11'If purchased for anywhere near its £95,000 to £100,000 guide price,
0:07:11 > 0:07:14'I think it would be a bit of a steal.
0:07:14 > 0:07:17'But what does a local estate agent think?'
0:07:17 > 0:07:20The property has been left for so many years,
0:07:20 > 0:07:24but it is a great opportunity cos you've got a blank canvas.
0:07:24 > 0:07:27With that, you can keep its features.
0:07:27 > 0:07:31You can do all sorts of things to bring it back to its original state,
0:07:31 > 0:07:36which would be lovely and would give it such a wealth of character.
0:07:36 > 0:07:42'Once the necessary works have been carried out, what's the likely sale value?'
0:07:42 > 0:07:46With a property like this, it doesn't have a "value" as such.
0:07:46 > 0:07:48It's what somebody is prepared to pay for it.
0:07:48 > 0:07:52Because it's so sought-after and there's so much charm to it,
0:07:52 > 0:07:55it will fetch a lot more than we would expect.
0:07:55 > 0:07:59I would envisage that we would be looking at 200-plus on this,
0:07:59 > 0:08:04but until the work is done, it's difficult to estimate it.
0:08:04 > 0:08:07'Are rental values easier to estimate?'
0:08:09 > 0:08:11You're going to be looking, probably,
0:08:11 > 0:08:16at around about £750 to £800 per calendar month.
0:08:16 > 0:08:18What can you say?
0:08:18 > 0:08:22A house that has SO much character I don't know where to start,
0:08:22 > 0:08:24and at a really good guide price.
0:08:24 > 0:08:27Somebody will definitely have fallen in love with this.
0:08:27 > 0:08:31Let's find out who that was when it went under the hammer.
0:08:32 > 0:08:35'There was a lot of interest in this property.
0:08:35 > 0:08:39'Let's join the bidding when it hotted up at 140,000.'
0:08:39 > 0:08:43140 I've got. And two? 142. And five? 145.
0:08:43 > 0:08:45150? 150.
0:08:45 > 0:08:49And five? 160 I'm looking for. 160 I'm looking for.
0:08:49 > 0:08:52158, if it helps you. Doesn't really.
0:08:52 > 0:08:56156? 156. 158.
0:08:56 > 0:09:01It's back with you, madam, at £158,000 for the first time.
0:09:01 > 0:09:04At 158 for the second.
0:09:04 > 0:09:06If you're sure you're all done.
0:09:06 > 0:09:09158 for the third and final time... BANGS GAVEL
0:09:09 > 0:09:12It's yours for 158,000.
0:09:12 > 0:09:16'Making that successful £158,000 bid,
0:09:16 > 0:09:21'way above the £95,000 to £100,000 guide price, was Paula.
0:09:21 > 0:09:24'If anyone's cut out for restoring this beautiful old place,
0:09:24 > 0:09:27'it should be her, as she's an architect.'
0:09:27 > 0:09:30# Lines like these
0:09:31 > 0:09:34# Have got to be
0:09:37 > 0:09:42# An architect's dream... #
0:09:42 > 0:09:46'I met her at the cottage to hear about her plans.'
0:09:46 > 0:09:49- Paula, lovely to meet you. - Hello. Lovely to meet you.
0:09:49 > 0:09:52- What a great place! - Yeah. It's fantastic.
0:09:52 > 0:09:56- You obviously paid a lot over the guide price.- I did. Yes.
0:09:56 > 0:09:58I had my limit. LAUGHS
0:09:58 > 0:10:02- Which was?- 160.- Right. Tell me why you wanted to buy it.
0:10:02 > 0:10:06I've had a bit of experience with listed buildings.
0:10:06 > 0:10:11My house is listed and I've done quite a bit of work on it, so it's a project I can take on.
0:10:11 > 0:10:15I'm just going back to work after quite a long career break.
0:10:15 > 0:10:17I've just had two children.
0:10:17 > 0:10:20So this is quite a nice project for me to take on.
0:10:20 > 0:10:25'I can completely understand why Paula was drawn to this project.
0:10:25 > 0:10:27'It will allow her to be her own boss
0:10:27 > 0:10:30'and give her time with her children.
0:10:30 > 0:10:33'She's not sure what she'll do with it once it's complete,
0:10:33 > 0:10:36'but in the meantime, what will she do to renovate it?'
0:10:39 > 0:10:44I want to do an environmentally friendly renovation of it.
0:10:44 > 0:10:49I'm probably going to try to insulate the external walls,
0:10:49 > 0:10:51put secondary glazing, possibly shutters in.
0:10:51 > 0:10:54A lot of this is subject to listed building consent.
0:10:54 > 0:10:59Obviously, the lean-to has got to go and I'll replace that.
0:10:59 > 0:11:02Possibly put the kitchen in there.
0:11:02 > 0:11:06Put a little shower room where the existing bathroom is.
0:11:06 > 0:11:11Then I'm hoping to be able to put a little bathroom
0:11:11 > 0:11:14in between two rooms on the first floor.
0:11:14 > 0:11:17It's going to be sympathetic to the existing building.
0:11:17 > 0:11:20What kind of money have you set aside?
0:11:20 > 0:11:22There's a lot of work to be done.
0:11:22 > 0:11:25If I could get it under 40, that would be all right.
0:11:25 > 0:11:29'A £40,000 budget and Paula's professional expertise
0:11:29 > 0:11:32'should be the perfect match for this property.
0:11:32 > 0:11:35'Like me, she loves the character of the building,
0:11:35 > 0:11:38'and I'm really pleased she's going to try and preserve it.
0:11:38 > 0:11:40'She's set a timescale of six months,
0:11:40 > 0:11:43'including drawing up the plans herself.
0:11:43 > 0:11:45'Given how long listed building consent can take,
0:11:45 > 0:11:48'I hope this isn't too optimistic.
0:11:48 > 0:11:50'Paula's feeling pretty positive.'
0:11:50 > 0:11:53- What are you most excited about? - Everything.
0:11:53 > 0:11:57I can sort of see where this building could go.
0:11:57 > 0:12:00It's going to be lovely to see it right at the end.
0:12:00 > 0:12:03I'm really excited about that - but it's everything.
0:12:03 > 0:12:09- Congratulations. Can't wait to see how it turns out.- Thank you very much.- Good luck with it.
0:12:09 > 0:12:12Not surprisingly, Paula has fallen in love with this place.
0:12:12 > 0:12:15She's certainly qualified to sort it out.
0:12:15 > 0:12:20Getting plans drawn up properly is even more important when it comes to restoring a listed building.
0:12:20 > 0:12:25Still, a property like this is going to throw up all sorts of hidden problems.
0:12:25 > 0:12:30You can find out how she gets on with the restoration later in the show.
0:12:33 > 0:12:36'What do you think of when you see the word "Peckham"?
0:12:36 > 0:12:39'Bustling street markets, wheeler-dealers,
0:12:39 > 0:12:43'a diverse high street that's a little rough around the edges?
0:12:43 > 0:12:48'Well, times have changed since Del Boy's days.
0:12:48 > 0:12:51'Look carefully and you will find...'
0:12:51 > 0:12:55beautiful tree-lined streets, gorgeous Victorian housing stock
0:12:55 > 0:12:58and oodles of charm - but this IS Peckham.
0:12:58 > 0:13:03After years spent riding on the coat tails of fashionable East Dulwich,
0:13:03 > 0:13:05it's now desirable in its own right,
0:13:05 > 0:13:08and this road is one of the most sought-after.
0:13:08 > 0:13:11The property I'm here to see is right here.
0:13:11 > 0:13:17It's the upstairs one-bedroom flat and it had a guide price of 185,000.
0:13:17 > 0:13:22'This road is described by the estate agents as being on the border of East Dulwich.
0:13:22 > 0:13:25'So, it's next on the cafe culture hit list.
0:13:25 > 0:13:29'This bit of Peckham is on the up, and so am I.'
0:13:29 > 0:13:32# I'm on the up and there's no coming down
0:13:32 > 0:13:35# Just as long as I'm where you are... #
0:13:35 > 0:13:39My first impressions of this property - a little tired and dated.
0:13:39 > 0:13:42You've got exposed pipework. It needs a bit of a spruce-up.
0:13:42 > 0:13:46But a lovely big kitchen. You've got the bathroom out back.
0:13:46 > 0:13:49Not ideal, but I could live with that.
0:13:49 > 0:13:51A wonderful bedroom space there,
0:13:51 > 0:13:54views outside from the big window.
0:13:54 > 0:13:57But this is what really sells the property. Look!
0:13:57 > 0:14:01A fantastic, original, uncarved-up room!
0:14:01 > 0:14:05Beautiful big windows, loads of lovely light.
0:14:05 > 0:14:09It really is a treasure when you find a space like this.
0:14:09 > 0:14:12So far, so good. I really like this flat.
0:14:12 > 0:14:15'All too often in London, you'll find rooms like this
0:14:15 > 0:14:17'with a kitchen squeezed in,
0:14:17 > 0:14:20'partitioned off to create another room.
0:14:20 > 0:14:23'So this untouched space is a find,
0:14:23 > 0:14:26'because space is always at such a premium in the capital.
0:14:26 > 0:14:29'This flat gets the thumbs-up so far.
0:14:30 > 0:14:35'I'm pleased to see that the kitchen has even got room for a table.
0:14:35 > 0:14:38'Maybe just a table for two, but nonetheless...'
0:14:38 > 0:14:42Having space for a table is important, I think, in a kitchen.
0:14:42 > 0:14:46Seems an obvious thing to say, but it can double up as work space,
0:14:46 > 0:14:50somewhere to entertain your friends and, at its most basic,
0:14:50 > 0:14:52it means you don't have to eat on your knee
0:14:52 > 0:14:55or squeeze a table into your lounge.
0:14:55 > 0:14:58It's only, maybe, four foot square, this little area,
0:14:58 > 0:15:02but in a small inner-city flat, it makes a massive difference.
0:15:02 > 0:15:04And it's a huge selling point.
0:15:09 > 0:15:11'While we're on the subject of space,
0:15:11 > 0:15:15'a smidgen can be utilised between the kitchen and bathroom.
0:15:15 > 0:15:19'You could take out these cupboards and perhaps enlarge the bathroom.
0:15:19 > 0:15:24'Just a thought. What I like about this flat is that it has potential.
0:15:24 > 0:15:28'It has scope for someone to come in, add value and sell on.
0:15:28 > 0:15:30'Or has it?'
0:15:30 > 0:15:35You're a local developer on the lookout for your next hot property in Peckham.
0:15:35 > 0:15:38Could this flat be for you? Well, perhaps not.
0:15:38 > 0:15:43A clause in the legal pack stipulates that the property could not be sold to someone
0:15:43 > 0:15:48who had bought another property in the borough in the past year!
0:15:48 > 0:15:50That is a first on me, that one.
0:15:50 > 0:15:55What isn't, is that the buyer has to pay the seller's auction fees at 2%.
0:15:55 > 0:16:00While not a deal-breaker, to walk away with a profit,
0:16:00 > 0:16:02that could be more than a little annoying.
0:16:02 > 0:16:06'The seller's fee and the stipulation about who can buy it
0:16:06 > 0:16:10'is enough to put many developers off. Which is, of course, the point.
0:16:10 > 0:16:13'However, even if you want a home to live in
0:16:13 > 0:16:15'and are not concerned about profit,
0:16:15 > 0:16:18'you could be looking at several thousands out of your budget
0:16:18 > 0:16:22'before you even start stripping the wallpaper.
0:16:22 > 0:16:25'What effect, if any, will these factors have
0:16:25 > 0:16:27'on the value of this property?
0:16:27 > 0:16:31'We asked a local expert for his thoughts on this one-bedroom flat,
0:16:31 > 0:16:34'guided at 185,000-plus.'
0:16:34 > 0:16:36First impressions of the flat
0:16:36 > 0:16:39is that it has some mod cons - gas central heating -
0:16:39 > 0:16:43but it needs going through, ripping everything out and redoing it all.
0:16:43 > 0:16:46A fair bit of work, but a great one to work on.
0:16:46 > 0:16:49'And it'll be even better when it's done up,
0:16:49 > 0:16:53'but how will that affect the resale value?'
0:16:53 > 0:16:57If its done up, its value, depending what you do and how well you do it,
0:16:57 > 0:17:01will go somewhere between £280,000 to £300,000.
0:17:01 > 0:17:04'What if the new owner decided to let it?'
0:17:04 > 0:17:06In a good condition, rental-wise,
0:17:06 > 0:17:10you'd be looking at about £1,200 per calendar month.
0:17:10 > 0:17:14I really believe in this area. It's Peckham, but it's pretty.
0:17:14 > 0:17:20This flat was a great chance for perhaps a young professional to buy a pad of their own.
0:17:20 > 0:17:23Let's see what happened when it went to auction.
0:17:23 > 0:17:26One-bed flat, requires upgrading.
0:17:26 > 0:17:28Nice lot, this. Where do you want to start?
0:17:30 > 0:17:35180. We've got 180 down here. 185 anywhere?
0:17:35 > 0:17:39185. 190. 195?
0:17:39 > 0:17:42200. 205?
0:17:42 > 0:17:45210. 215?
0:17:45 > 0:17:49220? Yeah? 225?
0:17:49 > 0:17:52220 down here. 225 elsewhere?
0:17:54 > 0:17:58220. 221 at the back? Try and help.
0:17:59 > 0:18:01221. 222?
0:18:02 > 0:18:04223?
0:18:04 > 0:18:06224?
0:18:06 > 0:18:10225 at the back. 226? Sorry.
0:18:10 > 0:18:12227?
0:18:13 > 0:18:16226 in the aisle. First time.
0:18:16 > 0:18:20Second time. Third and last time, if you're all done...
0:18:22 > 0:18:24BANGS GAVEL Sold. 226 in the aisle.
0:18:24 > 0:18:26'And a beaming smile from Pete.
0:18:26 > 0:18:30'He secured the one-bedroom flat for 226,000
0:18:30 > 0:18:34'plus, of course, that seller's fee of around £4,500.
0:18:34 > 0:18:37'He took the plunge to become a property developer a year ago.
0:18:37 > 0:18:40'He bought it with his girlfriend Rachel,
0:18:40 > 0:18:42'who works as an events organiser.
0:18:42 > 0:18:46'I met them at their new purchase to find out more.'
0:18:46 > 0:18:50- Why have you bought this property? - We bought a property last year.
0:18:50 > 0:18:54We did that up and made a nice profit from it.
0:18:54 > 0:18:59This was our next project so I'm looking to do the same this time.
0:18:59 > 0:19:05- Rachel, you weren't there on the day. Where were you?- I was at work, watching it on the internet.
0:19:05 > 0:19:09- Had to trust you a little bit. - You did.- I'd seen some photos.
0:19:09 > 0:19:14- Yeah, that was as much as I had. - You hadn't seen inside the flat?
0:19:14 > 0:19:19- I hadn't seen inside the flat. - You trusted Pete completely with all your money!- Yeah.
0:19:19 > 0:19:23We'd seen a few flats before so we know the sort of things we like.
0:19:23 > 0:19:29This flat's got period features, bay windows, high ceilings. I knew it would be Rachel's taste.
0:19:29 > 0:19:34When you were bidding, were you worried? "Rachel hasn't seen it. I've got to bid for this."
0:19:34 > 0:19:38No. I wasn't particularly worried. I was confident about this one.
0:19:38 > 0:19:41- This was one of my favourite flats I'd seen.- We like the area.
0:19:41 > 0:19:46I really didn't think we'd got it. I'd missed out on a few previously.
0:19:46 > 0:19:50For 226, do you feel it's the flat you want and you got a bargain?
0:19:50 > 0:19:53I don't think we feel we got a bargain.
0:19:53 > 0:19:55It's going to be tight.
0:19:55 > 0:20:00The last one we did, we kind of spent probably more than we should.
0:20:00 > 0:20:04We wanted it to be the best that we could do, within reason.
0:20:04 > 0:20:07- We don't want to cut corners, do we? - No.- It's such a beautiful flat.
0:20:07 > 0:20:12- It's got such beautiful features. - We want a very high-quality finish.
0:20:12 > 0:20:16We feel that the kind of person we'd want to sell it to
0:20:16 > 0:20:20would appreciate those kind of features.
0:20:20 > 0:20:24- We want it to reach the maximum value we think a one-bed can.- Yes.
0:20:24 > 0:20:27Wait a minute. You're already talking about selling this on.
0:20:27 > 0:20:31- What is the plan here? - We're going to be quite flexible.
0:20:31 > 0:20:34I'm going to do all the work as quickly as I can.
0:20:34 > 0:20:39Then get it valued. If we could make some profit on it, that'd be great.
0:20:39 > 0:20:42Sell it on and move on.
0:20:42 > 0:20:47If not, then we're happy to live in this area. It's such a nice area and a nice house.
0:20:47 > 0:20:51'The couple's other property is outside the borough,
0:20:51 > 0:20:54'so they had no problem buying this place.
0:20:54 > 0:20:58'Even if they don't sell it, they can always move in themselves.
0:20:58 > 0:21:01'What's their budget for the work?'
0:21:01 > 0:21:04We're hoping to spend no more than about £17,000.
0:21:04 > 0:21:08- Which we think is going to be tight, don't we?- Yeah.
0:21:08 > 0:21:12We've looked into the things that we want to have, a few extra touches
0:21:12 > 0:21:16to make it really a cut above other one-bedroom flats in the area.
0:21:16 > 0:21:19So it's going to be tight but, hopefully,
0:21:19 > 0:21:23by myself doing a lot of the work, we won't have to spend too much.
0:21:23 > 0:21:27'The more he saves on labour, the more profit they'll make.
0:21:27 > 0:21:31'Pete sounds pretty confident about his handyman skills.'
0:21:31 > 0:21:34I do everything myself. I'm completely self-taught.
0:21:34 > 0:21:40My dad's very good at DIY, so hopefully it's in my genes!
0:21:40 > 0:21:43I'll ask you, Rachel. Is he as good as he says he is?
0:21:43 > 0:21:47I have to give him credit where it's due. He definitely is.
0:21:47 > 0:21:50- I did help with the painting, didn't I? But...- Yeah.
0:21:50 > 0:21:54I reckon on the whole of the last project, you saved me five minutes!
0:21:54 > 0:21:56- LAUGHS - That is not nice!
0:21:56 > 0:22:00- She's out at work all day, getting up early.- Thank you.
0:22:00 > 0:22:03She's the designated skirting board painter.
0:22:03 > 0:22:07Even that, I'm not really up to scratch, apparently.
0:22:07 > 0:22:10Yeah. I re-do it at night when she's asleep!
0:22:10 > 0:22:12'Surely not THAT bad, Pete!
0:22:12 > 0:22:17'The two make a great team. Rachel's job allows her to raise a mortgage.
0:22:17 > 0:22:21'And Pete's able to spend the time to get the place up to scratch.
0:22:21 > 0:22:26'They're prepared to adapt their living situation to take this step up the property ladder.
0:22:26 > 0:22:30'They lived in their last property while they worked on it, putting up with all the mess.
0:22:30 > 0:22:32'But not this time round.'
0:22:32 > 0:22:35Where are you currently living?
0:22:35 > 0:22:38We're actually living with Pete's mum and dad, temporarily.
0:22:38 > 0:22:41When we sold the last property, we had nowhere to go.
0:22:41 > 0:22:44You're not in a chain when you buy at auction.
0:22:44 > 0:22:46- We're temporarily living there, aren't we?- Yeah.
0:22:46 > 0:22:49So, when are you going to start the work, Pete?
0:22:49 > 0:22:56I should start in the next few days, start stripping the wallpaper and getting everything out.
0:22:56 > 0:22:58- So are you excited? - Very excited, yes.
0:22:58 > 0:23:04We hope to get it done within the next...six to eight months.
0:23:04 > 0:23:08- Well done. I'm so excited for you both. Rachel, Pete.- Thank you.
0:23:10 > 0:23:14Rachel and Pete have an exciting, if dusty, time ahead of them.
0:23:14 > 0:23:18I'm sure they're going to make this flat absolutely beautiful.
0:23:18 > 0:23:21But am I sure there's going to be a big profit here?
0:23:21 > 0:23:23Hm, not quite so confident there.
0:23:23 > 0:23:26You can find out how it all goes later in the show.
0:23:27 > 0:23:30'Coming up, I've had a change of plan in Cumbria.'
0:23:30 > 0:23:34My initial thoughts of knocking the place down and starting again -
0:23:34 > 0:23:36maybe that was a little hasty.
0:23:37 > 0:23:42'In London, Rachel's in charge of the decor, but what about Pete?'
0:23:42 > 0:23:45I'm more the practical person.
0:23:45 > 0:23:47- Match made in heaven. - BOTH LAUGH
0:23:48 > 0:23:53'First, will it be hard for the owner of this Kent property to let it go?'
0:23:53 > 0:23:57It's going to be really easy - if I sell it to someone I like.
0:24:01 > 0:24:04'Time to return to Kent.
0:24:04 > 0:24:06'Here, I met architect Paula,
0:24:06 > 0:24:10'who purchased this characterful Grade II listed terrace at auction
0:24:10 > 0:24:13'for £158,000.
0:24:13 > 0:24:16'As I did, Paula fell in love with this place
0:24:16 > 0:24:20'and couldn't wait to get cracking with the work.'
0:24:20 > 0:24:23- What are you most excited about? - Everything.
0:24:23 > 0:24:26I can see where this building could go.
0:24:26 > 0:24:29It's going to be lovely to see it right at the end.
0:24:29 > 0:24:33I'm really excited about that - but it's everything.
0:24:34 > 0:24:38'That "everything" was going to get done in around six months.
0:24:38 > 0:24:43'However, it's now three years and two months since I first met Paula,
0:24:43 > 0:24:47'and we've come back to see the fruits of her labour.
0:25:02 > 0:25:06'What was the kitchen is now additional living space,
0:25:06 > 0:25:09'which could be used as a dining room.
0:25:09 > 0:25:11'As per her original plan,
0:25:11 > 0:25:15'the decrepit-looking conservatory is a goner.
0:25:17 > 0:25:20'In its place is this lovely new kitchen.'
0:25:29 > 0:25:33Well, a lot's happened in this bit of the building.
0:25:33 > 0:25:36It was a conservatory. It was all rotten.
0:25:36 > 0:25:40The first thing we did was take out all of that.
0:25:40 > 0:25:43Then we exposed the back wall of the house.
0:25:43 > 0:25:47You can still see some of the timbers
0:25:47 > 0:25:51and the doors are as they originally were.
0:25:51 > 0:25:54Then we just put a very simple kitchen in.
0:25:54 > 0:25:57It gets lots of sunlight.
0:25:57 > 0:26:00And... It's almost a bit more modern than I'd envisaged it.
0:26:00 > 0:26:03But that's OK. That's fine.
0:26:03 > 0:26:07'This project was more about restoration than renovation.
0:26:07 > 0:26:10'Paula has combined the two really well,
0:26:10 > 0:26:12'not least up on the first floor,
0:26:12 > 0:26:15'which now has two good-sized bedrooms
0:26:15 > 0:26:18'and a family bathroom in between them - ideal!
0:26:18 > 0:26:20'There's still a loo on the ground floor,
0:26:20 > 0:26:25'but without the bath there was room to make it a utility space.
0:26:25 > 0:26:27'As for up top...
0:26:31 > 0:26:34'..the room has been completely redecorated,
0:26:34 > 0:26:37'turning it from ramshackle to ravishing.
0:26:37 > 0:26:40'The biggest difference is an additional window,
0:26:40 > 0:26:42'so this area is now flooded with light.
0:26:42 > 0:26:46'Along with builder Barry, Paula has done a wonderful job.
0:26:46 > 0:26:49'That's not to say it was easy.'
0:26:49 > 0:26:53There are a lot of issues with how to repair a house
0:26:53 > 0:26:55and bring it up to modern standards,
0:26:55 > 0:27:00yet retain the character and not ruin it.
0:27:00 > 0:27:03So we've tried to be sympathetic, wherever we can.
0:27:03 > 0:27:08Actually, by going forward, we've also gone back.
0:27:08 > 0:27:14But I think, in general, it works. It was hard work, but it did work.
0:27:14 > 0:27:18'It has meant they've had time to re-landscape the garden as well -
0:27:18 > 0:27:22'after over three years of time, energy, love
0:27:22 > 0:27:27'and some lengthy discussions to get the listed building consents.'
0:27:27 > 0:27:30The listed building consent took 18 months.
0:27:30 > 0:27:35You have to negotiate down to skirting boards,
0:27:35 > 0:27:38everything you want to do.
0:27:38 > 0:27:41It's a long process.
0:27:41 > 0:27:46But I found it absolutely fantastically helpful.
0:27:46 > 0:27:51'Never underestimate the effort involved to take on a listed building.
0:27:51 > 0:27:54'If you can commit to it in the way that Paula has,
0:27:54 > 0:27:58'there's no comparison with doing a standard conversion
0:27:58 > 0:28:02'to the satisfaction of making a house as homely as she has.
0:28:02 > 0:28:07'So homely, in fact, that I don't think Paula wants to let it go!'
0:28:07 > 0:28:11I'd love to keep this house, but I can't afford to.
0:28:11 > 0:28:15It's going to be really easy - if I sell it to someone I like!
0:28:15 > 0:28:19'As well as the purchase price of 158,000,
0:28:19 > 0:28:22'Paula's spent around £60,000 on the work.
0:28:22 > 0:28:26'That's more than her original budget of 40,000,
0:28:26 > 0:28:28'but look at the results!
0:28:30 > 0:28:33'We asked two local property experts to tell us what they make
0:28:33 > 0:28:36'of her £218,000 investment.
0:28:37 > 0:28:40'First, the one who saw it before the renovation.'
0:28:40 > 0:28:44They have restored it in a really sympathetic way.
0:28:44 > 0:28:49They've taken a lot of time and effort to really keep its character.
0:28:49 > 0:28:53You can see yourself on a cosy night sitting in and enjoying it.
0:28:53 > 0:28:55A lot of people would feel the same.
0:28:55 > 0:29:00My first impression is, "Wow! It's a really nice property."
0:29:00 > 0:29:06Full of character. It looks like it's been done to a very good standard, so I'm very impressed.
0:29:06 > 0:29:09'I think they are just as smitten as Paula.
0:29:09 > 0:29:14'Much as it pains her, she's keen on a sale rather than rental.
0:29:14 > 0:29:19'However, both agents agree that £800 to £850 per calendar month
0:29:19 > 0:29:21'would be about right.
0:29:21 > 0:29:24'This was bought to sell on, as Paula wanted to create
0:29:24 > 0:29:28'a development career that would give her time with her children.
0:29:28 > 0:29:32'So, how has she fared with that £218,000 investment
0:29:32 > 0:29:35'and three years of hard graft?'
0:29:35 > 0:29:39Price-wise, it's very difficult, because it is unique.
0:29:39 > 0:29:43It's always down to what somebody is prepared to pay for it.
0:29:43 > 0:29:48But the feel I have for it is somewhere around the £225,000
0:29:48 > 0:29:53to probably about £250,000 for it, as is.
0:29:53 > 0:29:55If I had to put this property up for sale,
0:29:55 > 0:30:03I would expect to put it up for a price in the region of £225,000 to £250,000.
0:30:03 > 0:30:07Yeah. That's about what I thought it would be, something like that.
0:30:07 > 0:30:10Which is good, in a way, cos I think that's affordable.
0:30:10 > 0:30:14It's nice to do an affordable house, basically.
0:30:14 > 0:30:16So, yeah, I'm happy with that.
0:30:18 > 0:30:23'So, Paula's potential profit lies between £7,000 and £32,000,
0:30:23 > 0:30:25'before tax and costs.
0:30:25 > 0:30:27'I have no doubt that she'll find a buyer
0:30:27 > 0:30:31'who loves this place just as much as she does.'
0:30:31 > 0:30:35Houses like this, they've got personality.
0:30:35 > 0:30:39They sort of become a friend...
0:30:39 > 0:30:43You know, you find them in a terrible state of disrepair,
0:30:43 > 0:30:48and a friend in need is a friend indeed.
0:30:48 > 0:30:51It's just got personality everywhere!
0:30:51 > 0:30:56So, yeah. I love it. I love the house. Beautiful.
0:30:59 > 0:31:01I'm in Whitehaven.
0:31:01 > 0:31:04This once small Lakeland fishing port
0:31:04 > 0:31:09grew on the back of rum, coal and ship-building to become what it is today.
0:31:09 > 0:31:14The marina behind me is testament to the good stuff going on in the town.
0:31:14 > 0:31:17# Down by the seaside
0:31:18 > 0:31:22# See the boats go sailing... #
0:31:23 > 0:31:26'Over £11 million has been spent here,
0:31:26 > 0:31:31'including 100 more moorings in the marina, and the future looks bright.
0:31:31 > 0:31:35'However, if you want to delve into Whitehaven's dark side,
0:31:35 > 0:31:39'then the town's museum, The Rum Story, is the place to go.'
0:31:39 > 0:31:44Quite fitting, given the port's rum-based boozy heritage,
0:31:44 > 0:31:49the property that was up for auction is this former pub.
0:31:49 > 0:31:53Grubby from the outside, it's a very interesting development opportunity.
0:31:53 > 0:31:57You've got the pub itself, then a three-bedroom flat above.
0:31:57 > 0:32:00The guide price was 35,000 quid.
0:32:00 > 0:32:05Big question is, is it as grubby on the inside as it is on the outside?
0:32:08 > 0:32:11Uh-oh. I think this answers my question.
0:32:11 > 0:32:15It's always strange walking into places like this.
0:32:15 > 0:32:19It's almost like they've just been abandoned.
0:32:19 > 0:32:23You've got the glasses on the bar and all the bar bits and pieces.
0:32:23 > 0:32:26Very strange. Let's look at the space we've got here.
0:32:26 > 0:32:28It's a really good sized room.
0:32:28 > 0:32:31You're probably not going to keep it, are you?
0:32:31 > 0:32:34We're looking at the square footage.
0:32:34 > 0:32:37I'm not bothered about the state of it cos it's probably going to go.
0:32:37 > 0:32:40Let's see what else there is.
0:32:40 > 0:32:45# Don't let my glass run dry Please fill it up again... #
0:32:45 > 0:32:50'There's lots of square footage but, unfortunately, lots of damp as well.
0:32:50 > 0:32:53'This building needs some drastic measures.
0:32:53 > 0:32:56'Maybe a conversion to residential might work.
0:32:56 > 0:32:59'But I'm thinking, "Bring in the bulldozers!"
0:32:59 > 0:33:02'My glass is half full rather than half empty
0:33:02 > 0:33:06'because there's a good plot under here somewhere.'
0:33:06 > 0:33:11We're here in what was the old snooker room - yet more space.
0:33:11 > 0:33:14That is, really, what you're looking at here.
0:33:14 > 0:33:17And also, how much stuff there is to demolish.
0:33:17 > 0:33:20I'm on the lookout for things like asbestos,
0:33:20 > 0:33:24anything which impedes that demolition process,
0:33:24 > 0:33:26which we are contemplating.
0:33:26 > 0:33:29But at first glance, you have got a good space,
0:33:29 > 0:33:33so I think it is on course to be an award-winning development.
0:33:33 > 0:33:37# Tonight in a bar alone I'm sitting
0:33:39 > 0:33:42# Watching the bubbles in my beer... #
0:33:42 > 0:33:48'Underneath the bar there's a cellar, and behind it a snooker room, the pub's toilet
0:33:48 > 0:33:51'and stairs to the first-floor flat.
0:33:51 > 0:33:55'Up here, there's a maze of rooms on different levels.
0:33:55 > 0:33:57'But...'
0:33:57 > 0:34:01I am having a rethink, in terms of what I might do with this place.
0:34:01 > 0:34:04It's surprisingly all right.
0:34:04 > 0:34:08The layout screams out to me - flats!
0:34:08 > 0:34:11I mean, pretty much as it is. Imagine a door here.
0:34:11 > 0:34:15That would lead into a fairly reasonable one or two-bed flat.
0:34:15 > 0:34:19You've got the shared access here and the stairs there.
0:34:19 > 0:34:22Another door here, leading down to,
0:34:22 > 0:34:26again, a half-decent one-bedroom studio flat, if you like.
0:34:26 > 0:34:31Beautiful views out that way, so that would be fairly good.
0:34:31 > 0:34:36The thing that makes me say this could work is this really good-sized kitchen here.
0:34:36 > 0:34:42Maybe my initial thoughts of knocking the place down - maybe that was a little bit hasty.
0:34:42 > 0:34:45'On reflection, this pub guided at 35 grand
0:34:45 > 0:34:49'could make a characterful development, maybe even two houses.
0:34:49 > 0:34:52'The outside could lend itself to that
0:34:52 > 0:34:55'and it has a great position, high above Whitehaven.'
0:34:55 > 0:34:57# Going up to the spirit in the sky... #
0:34:57 > 0:35:00'Maybe someone would keep it as a pub,
0:35:00 > 0:35:03'although I'd be rethinking my drinking establishment
0:35:03 > 0:35:05'if I had to climb up here!
0:35:05 > 0:35:10'There are houses next door, so residential looks like a good option.
0:35:10 > 0:35:13'What does a local estate agent think would be best?'
0:35:13 > 0:35:15I don't think it should stay as a pub.
0:35:15 > 0:35:19It's a good idea to convert it, say, into two properties.
0:35:19 > 0:35:22'How much could those properties be worth?'
0:35:22 > 0:35:24For a three-bedroomed house,
0:35:24 > 0:35:29I would say in the region of £145,000 to £150,000.
0:35:29 > 0:35:34For your two-bedroomed house, about £130,000.
0:35:34 > 0:35:36'What about flats?'
0:35:36 > 0:35:38You could convert it into flats.
0:35:38 > 0:35:41Whether that would be viable, I don't know.
0:35:41 > 0:35:45Because the council have got a lot of flats in the town centre
0:35:45 > 0:35:48and this area is mostly houses.
0:35:48 > 0:35:53'Sticking with houses, what sort of rental income could they generate for a buy-to-let investor?'
0:35:53 > 0:35:56For the three-bedroomed house,
0:35:56 > 0:36:01rental would be in the region of £425 per calendar month.
0:36:01 > 0:36:05And for the two-bedroomed house, about £400 per calendar month.
0:36:05 > 0:36:12So, for a £35,000 guide price, you get a lot of property with this one.
0:36:12 > 0:36:17Money to be spent, clearly, but I think, yeah, money to be made.
0:36:17 > 0:36:19Let's see who agreed, when it went under the hammer.
0:36:19 > 0:36:24Lot number 20, then. I've got a telephone bid. Are we connected?
0:36:24 > 0:36:27We are, indeed. 35,000, anyone?
0:36:27 > 0:36:3230? 30 I've got, seated, on the aisle.
0:36:32 > 0:36:34At £30,000. We're away.
0:36:34 > 0:36:3631 I've got. 32, madam?
0:36:36 > 0:36:3932 I've got. 33?
0:36:39 > 0:36:4233 at the back. 34?
0:36:42 > 0:36:4534 I've got. 35?
0:36:45 > 0:36:48Half. 34 and a half. 35?
0:36:48 > 0:36:5135 I've got. And a half?
0:36:51 > 0:36:55Shake of the head. It's with you again, at £35,000.
0:36:55 > 0:36:5835 and a half on the phone. 36, madam?
0:36:58 > 0:37:0236 I've got. 36 and a half on the phone, may I say?
0:37:02 > 0:37:07Shake of the head at 36 and a half. At £36,000.
0:37:07 > 0:37:1036 and a half. 37, madam?
0:37:10 > 0:37:1337 I've got. Determined.
0:37:13 > 0:37:17Have to hurry you along on the phone. 37 and a half. 38?
0:37:19 > 0:37:2338 I've got. At £38,000 I'm bid.
0:37:24 > 0:37:26First time.
0:37:26 > 0:37:28At 38 second time.
0:37:28 > 0:37:33Are you out? £38,000, ladies and gentlemen. Third and final time.
0:37:34 > 0:37:37'Well, for only three grand over the guide price,
0:37:37 > 0:37:43'Heather and husband Brian have bought a pub with no beer for £38,000.
0:37:43 > 0:37:48'Heather recently gave up her career as a technology teacher at a secondary school.
0:37:48 > 0:37:51'Brian's a quantity surveyor, which should be handy.
0:37:51 > 0:37:56'I met them to find out if it was brown ale or bulldozers for this pub.'
0:37:56 > 0:37:59# Look what I found in my beer
0:37:59 > 0:38:03# A couple of dancing ladies and a ticket outta here... #
0:38:03 > 0:38:07- Heather, Brian, lovely to meet you. - Hello.- Hello.- Congratulations.
0:38:07 > 0:38:09Tell me what you've bought it for.
0:38:09 > 0:38:14- Hopefully, we're going to be able to split it into two buildings.- Oh!
0:38:14 > 0:38:18- So we're going to have the house, which is the old pub side.- Wow!
0:38:18 > 0:38:21Then the other side, we'll revert back to a cottage.
0:38:21 > 0:38:25So, hopefully, a two-bedroomed cottage and a three-bedroomed house.
0:38:25 > 0:38:29What do you know about the history? Was that how it was at one stage?
0:38:29 > 0:38:32We think so, yeah.
0:38:32 > 0:38:37If you look at where the wall division is between what became the pool room,
0:38:37 > 0:38:41it looks as if there was a natural division there originally,
0:38:41 > 0:38:43so it shouldn't be too bad.
0:38:43 > 0:38:47So why have you gone down the route of two houses rather than flats?
0:38:47 > 0:38:49One is cost for us.
0:38:49 > 0:38:53The other thing is that this residential area that we've got,
0:38:53 > 0:39:00we felt that it would be more appropriate to have a family house
0:39:00 > 0:39:05and a cottage that was maybe for a retired couple
0:39:05 > 0:39:08- or starter home or something like that.- Right.
0:39:08 > 0:39:13For flats, we've got a lot of flats in town already.
0:39:13 > 0:39:18So we felt let's try and keep it in keeping with the area itself.
0:39:18 > 0:39:22'The couple seem to have done their research.
0:39:22 > 0:39:25'But regardless of what type of conversion they do,
0:39:25 > 0:39:28'it's most definitely a very big undertaking.'
0:39:28 > 0:39:31What attracted you to it, then?
0:39:31 > 0:39:33- The price, initially, I think.- Mm!
0:39:33 > 0:39:37When we came to have a look around on the open day,
0:39:37 > 0:39:42we sat in the car and identified that it's two buildings, not one.
0:39:42 > 0:39:45So there was lots of potential here.
0:39:45 > 0:39:50- Tell me what you're going to do to sort it out. - We're going to strip everything out.
0:39:50 > 0:39:53We're going to turn this into the living area,
0:39:53 > 0:40:00walking through to a semi open-plan kitchen area and utility room.
0:40:00 > 0:40:05Then have the dining room encompassed within this living area.
0:40:05 > 0:40:08- And upstairs? - Upstairs, we've got three bedrooms.
0:40:08 > 0:40:12They're going to stay as they are but get refurbished,
0:40:12 > 0:40:17and turn one of the bedrooms into a master with an en suite.
0:40:17 > 0:40:22We'll be taking a little off the bathroom, which is a big bathroom.
0:40:22 > 0:40:25- It'll be a huge property. - It will be, yes.
0:40:25 > 0:40:28Is there a market for that? Will that fit in with the area?
0:40:28 > 0:40:32By the time we've separated it into two properties, it will be,
0:40:32 > 0:40:35because the adjoining property will be more of a cottage.
0:40:35 > 0:40:38That'll have two bedrooms and bathroom.
0:40:38 > 0:40:40We'll have to put in a staircase.
0:40:40 > 0:40:45Then downstairs, it will be a living and kitchen area
0:40:45 > 0:40:48with a small utility combined, hopefully.
0:40:48 > 0:40:51'Their architect has measured up the property.
0:40:51 > 0:40:55'Once the plans have been agreed, they'll hope to get planning permission,
0:40:55 > 0:40:58'but it doesn't sound like a cheap conversion to me.
0:40:58 > 0:41:00'How much will it all cost?'
0:41:00 > 0:41:06- Our budget at the minute is about £100,000 for both properties.- Right.
0:41:06 > 0:41:09We'll be re-plumbing, re-electrics.
0:41:09 > 0:41:13- There's a roof garden, possibly, to go on this extension.- Wow.
0:41:13 > 0:41:17We're going to keep as many of the features as we can.
0:41:17 > 0:41:21If we can take the doors and bring them back to life, we will.
0:41:21 > 0:41:24Some of the floors, if they're recoverable, sand and varnish them.
0:41:24 > 0:41:27All the work will be done by proper tradesmen.
0:41:27 > 0:41:31'With his quantity surveying job, Brian will take a back seat,
0:41:31 > 0:41:34'just coming down on weekends and evenings,
0:41:34 > 0:41:36'but he knows the tradesmen well.'
0:41:36 > 0:41:40# Tonight in a bar alone I'm sitting
0:41:42 > 0:41:45# Apart from the laughter and the tears... #
0:41:45 > 0:41:49How much involvement on a day-to-day basis will you have?
0:41:49 > 0:41:52Um... Quite heavy, really.
0:41:52 > 0:41:55Although I'm not going to be doing any major works,
0:41:55 > 0:41:59because that's not my forte, I'll be overseeing it.
0:41:59 > 0:42:05- What's the timescale?- We're looking at six to eight months, with planning on top of that.
0:42:05 > 0:42:08- I'm very excited to see what you do to it.- OK.
0:42:08 > 0:42:11- I'm sure we'll see some big changes when we come back.- Hopefully.
0:42:11 > 0:42:13- Good luck.- Thank you. Lovely.
0:42:13 > 0:42:18So, it seems like it's last orders for the old pub -
0:42:18 > 0:42:20but I think we knew that, didn't we?
0:42:20 > 0:42:24But not converting to flats, building two houses here,
0:42:24 > 0:42:27have Heather and Brian made the right decision?
0:42:27 > 0:42:32Um... Not so sure. You can find out how it goes later in the show.
0:42:35 > 0:42:37It's hard to predict how things will have gone.
0:42:37 > 0:42:43Will the renovations have been a coat of paint and a new carpet or a full-blown rebuild?
0:42:43 > 0:42:49Which one will it be today? A lick and a promise or back to square one? Let's find out.
0:42:50 > 0:42:54'Now back to Peckham in south-east London,
0:42:54 > 0:42:59'where earlier we saw this one-bed flat sell at auction for 226,000.
0:42:59 > 0:43:03'It was Pete and Rachel who snapped it up.
0:43:03 > 0:43:05'Pete's a property developer
0:43:05 > 0:43:09'and it's his business to make money out of his renovations.
0:43:09 > 0:43:12'Rachel does lend a hand when it comes to decorating.'
0:43:12 > 0:43:15I did help with the painting, didn't I?
0:43:15 > 0:43:19I reckon on the whole of the last project you saved me five minutes!
0:43:19 > 0:43:21- LAUGHS - That is not nice.
0:43:21 > 0:43:24- She's out at work all day! - Thank you.
0:43:24 > 0:43:28She's the designated skirting board painter.
0:43:28 > 0:43:32I am, but even that I'm not up to scratch, apparently.
0:43:32 > 0:43:35I re-do it at night when she's asleep.
0:43:35 > 0:43:39'Hopefully, Pete hasn't had to double-check her work this time.
0:43:39 > 0:43:42'Let's catch up with them almost a year later,
0:43:42 > 0:43:44'to see what they've been up to.
0:43:55 > 0:43:59'As you can see, they've done such a fantastic job
0:43:59 > 0:44:02'that they've decided to move in themselves.
0:44:06 > 0:44:10'And who can blame them? It's gorgeous!'
0:44:10 > 0:44:15You can see that the renovations have been throughout the whole flat.
0:44:15 > 0:44:19Completely renovated the kitchen, the bathroom, the bedroom.
0:44:19 > 0:44:21We've just got the hall to finish.
0:44:21 > 0:44:26We've laid solid parquet floor throughout.
0:44:26 > 0:44:28We've got a roll top bath in the bathroom.
0:44:28 > 0:44:34We've finished it, we think, to a very high standard, so we're very happy.
0:44:34 > 0:44:37'Not only is it of a high standard,
0:44:37 > 0:44:39'but I think it's a brilliantly bold colour scheme.
0:44:39 > 0:44:42'They've also reinstated Victorian touches
0:44:42 > 0:44:45'like this wonderful fireplace.'
0:44:45 > 0:44:49We tried to stick with Victorian features everywhere.
0:44:49 > 0:44:52We've put in the ceiling rose in the lounge.
0:44:52 > 0:44:56The roll top bath is obviously a Victorian feature as well.
0:44:56 > 0:45:00So tried to keep it in keeping with the style of the house.
0:45:00 > 0:45:05'The couple decided to move in a few days after I met them last year.
0:45:05 > 0:45:09'They wanted the flat to be an even higher spec than they envisaged.
0:45:09 > 0:45:12'They were able to avoid the mess
0:45:12 > 0:45:15'by moving in with Pete's mum for the duration.
0:45:15 > 0:45:18'And it's a stunning result - particularly the kitchen!'
0:45:18 > 0:45:22We sourced a lot of very high-quality material.
0:45:22 > 0:45:24We've got solid wood cabinets
0:45:24 > 0:45:27that have been sprayed the colour that we wanted.
0:45:27 > 0:45:32We've got an earthstone work top, which is very durable.
0:45:32 > 0:45:35We've got a nice linear hob that's very modern.
0:45:35 > 0:45:40We wanted to make it a functional, but also appealing to the eye, room.
0:45:40 > 0:45:45'Rachel was in charge of the decor. What an exceptional job she's done!
0:45:54 > 0:45:57'But almost all the labour was down to Pete.'
0:45:57 > 0:46:02Everything you can see, I've pretty much done everything.
0:46:02 > 0:46:06From fitting a new kitchen to fitting a new bathroom,
0:46:06 > 0:46:10fitting the parquet floor throughout, tiling.
0:46:10 > 0:46:17Absolutely everything, apart from the plastering in the lounge and the hall and the gas works.
0:46:17 > 0:46:21We had a boiler replaced, so obviously I couldn't do that.
0:46:21 > 0:46:22Everything else, I've done.
0:46:22 > 0:46:25'And he does mean everything else!
0:46:25 > 0:46:28'He is certainly a man who takes on a challenge,
0:46:28 > 0:46:32'even digging out the soil pipe all on his own
0:46:32 > 0:46:34'in order to rejig the bathroom.
0:46:34 > 0:46:36'Rather him than me!
0:46:36 > 0:46:39'The down side is that it's taken a few months longer.
0:46:39 > 0:46:41'Since they're living here, that's not an issue.
0:46:41 > 0:46:44'Has the budget changed along with the plans?'
0:46:44 > 0:46:47The budget was originally £17,000.
0:46:47 > 0:46:53At that stage, we wanted to do the project as a buy-to-sell.
0:46:53 > 0:46:58Now that we're living in the property, we thought we'd spend a little bit more,
0:46:58 > 0:47:02to add a few nicer touches that we probably wouldn't have done.
0:47:02 > 0:47:06So the budget has gone up to around £20,000.
0:47:06 > 0:47:10'An overspend of only £3,000 seems pretty tame,
0:47:10 > 0:47:12'given the standard of the finish.
0:47:12 > 0:47:15'Remember, that total doesn't include any furnishings,
0:47:15 > 0:47:19'and it sounds like they're willing to spend even more money here.'
0:47:19 > 0:47:23We have the potential to turn it from a one-bed into a two-bed,
0:47:23 > 0:47:26through a loft conversion.
0:47:26 > 0:47:29We're looking to do that towards the end of this year.
0:47:29 > 0:47:33With that, we'd have a second bedroom and a second bathroom,
0:47:33 > 0:47:37which would really add real value on to the house.
0:47:37 > 0:47:39'Talking future values, then.
0:47:39 > 0:47:44'Let's ask two local property experts what they think of the work,
0:47:44 > 0:47:48'and what Pete and Rachel could achieve if they put it up for sale.'
0:47:48 > 0:47:51I've had a good look round the flat.
0:47:51 > 0:47:56It's in fantastic condition. Everything's been meticulously done.
0:47:56 > 0:47:58Expense has not been spared.
0:47:58 > 0:48:01My first impressions is that it's beautiful!
0:48:01 > 0:48:03They've done an amazing job.
0:48:03 > 0:48:07The finish is brilliant. The choice of surfaces is amazing.
0:48:07 > 0:48:13The style is incredible. They've obviously got very good taste and they do a very good job.
0:48:14 > 0:48:17'You can't get a more glowing report than that!
0:48:17 > 0:48:21'Hopefully, the estimated resale value will reflect that, then.
0:48:21 > 0:48:24'Remember, they spent 20,000 on the work,
0:48:24 > 0:48:28'so added to the 226,000 they paid at auction
0:48:28 > 0:48:31'plus that seller's fee of 4,500,
0:48:31 > 0:48:35'that's a total investment of £250,500.'
0:48:37 > 0:48:41The property would resale between £285,000 and £290,000.
0:48:41 > 0:48:45We'd put this property on the market for £299,000
0:48:45 > 0:48:47and we'd expect to achieve that.
0:48:47 > 0:48:50That's roughly what we were thinking, wasn't it?
0:48:50 > 0:48:53But maybe a little bit higher as well, so that's good news.
0:48:53 > 0:49:00'That top valuation of 299,000 would mean a profit of £48,500,
0:49:00 > 0:49:02'minus the usual tax and fees, of course.
0:49:02 > 0:49:05'Not only have they got a lovely new home,
0:49:05 > 0:49:09'but they're sitting on a great return, which could climb higher
0:49:09 > 0:49:11'if they decide to do that loft extension.
0:49:11 > 0:49:16'And they've learnt about each other's strengths when it comes to property make-overs.'
0:49:16 > 0:49:19I think Rach is more the creative one,
0:49:19 > 0:49:22likes to source different things from all over the place.
0:49:22 > 0:49:26I'm more the practical person who puts it all together.
0:49:26 > 0:49:30- A match made in heaven! - BOTH LAUGH
0:49:33 > 0:49:38'Earlier in the programme, we visited an old pub in the Cumbrian town of Whitehaven
0:49:38 > 0:49:40'and met Heather and her husband, Brian.
0:49:40 > 0:49:43'This was a new venture for the couple
0:49:43 > 0:49:46'and Heather was going to be hands-on as project manager,
0:49:46 > 0:49:50'since she'd given up her job as a technology teacher.
0:49:50 > 0:49:52'Brian was planning to take a back seat,
0:49:52 > 0:49:57'but his quantity surveying skills were definitely going to be useful.'
0:49:57 > 0:49:59Tell me what you've bought it for.
0:49:59 > 0:50:03Well, hopefully, we're going to be able to split it into two buildings.
0:50:03 > 0:50:08- So we're going to have the house, which is the old pub side.- Wow.
0:50:08 > 0:50:11Then the other side we'll revert back to an old cottage.
0:50:11 > 0:50:16'Heather had taken time out from her teaching career to consider other options.
0:50:16 > 0:50:21'She chose this project to see whether she might prefer property developing to teaching.
0:50:21 > 0:50:23'Although Brian was hands-off,
0:50:23 > 0:50:27'he was keen to retain as much of the character as possible.'
0:50:27 > 0:50:29We're going to keep as many features as we can.
0:50:29 > 0:50:33If we can take the doors and bring them back to life, we will.
0:50:33 > 0:50:37Some of the floors, if they're recoverable, sand and varnish them.
0:50:37 > 0:50:39All the work will be done by proper tradesmen.
0:50:39 > 0:50:43'The couple had set a £100,000 budget for both properties,
0:50:43 > 0:50:46'and a six to eight month timescale.
0:50:46 > 0:50:49'Well, it's now 13 months later
0:50:49 > 0:50:53'and some Cumbrian character has been restored to this building.
0:50:56 > 0:50:59'The former pub is now a house.
0:51:02 > 0:51:07'The main bar area is now this open-plan dining and living area.
0:51:10 > 0:51:14'With the former snug becoming the kitchen
0:51:14 > 0:51:17'with this separate utility area.
0:51:18 > 0:51:23'Upstairs, the layout of the three bedrooms hasn't changed.
0:51:25 > 0:51:29'But the master bedroom has gained an en suite.
0:51:31 > 0:51:35'The bathroom that lost space to the en suite is still a good size.
0:51:35 > 0:51:41'As Heather explains, there have, inevitably, been delays.'
0:51:41 > 0:51:45First of all, because it was originally a commercial building,
0:51:45 > 0:51:48we had to put in for planning permission for residential.
0:51:48 > 0:51:50That took longer than we expected.
0:51:50 > 0:51:56The longest thing to wait for was we had to do a mining report that we hadn't anticipated.
0:51:56 > 0:52:00'The planned extension hinged on the report,
0:52:00 > 0:52:02'which involved three test boreholes
0:52:02 > 0:52:06'and a six-month wait to see if there was movement -
0:52:06 > 0:52:08'expensive and long drawn out.'
0:52:08 > 0:52:12So we felt that converting the cottage into three storeys
0:52:12 > 0:52:15going into the loft was the answer.
0:52:15 > 0:52:19'Work on the cottage is well advanced.
0:52:19 > 0:52:22'The former snooker room and lounge on the ground floor
0:52:22 > 0:52:26'will be an open-plan kitchen and living area, as in the house.'
0:52:26 > 0:52:30We've put a staircase in, so it leads up to a master bedroom.
0:52:30 > 0:52:32We've got a family sized bathroom.
0:52:32 > 0:52:37Leading up again into what was originally the loft,
0:52:37 > 0:52:41we've got another bedroom and a reasonably good sized shower room,
0:52:41 > 0:52:43plus storage area as well.
0:52:43 > 0:52:47'They've reinstalled two original windows at the top of the building.
0:52:47 > 0:52:51'Both properties have new windows throughout.
0:52:51 > 0:52:56'In the house, two useful storage spaces have been made in its attic.
0:52:56 > 0:53:00'But with only a ladder, it can't be classified as a bedroom.
0:53:01 > 0:53:04'Outside, the pub toilets have been demolished.
0:53:04 > 0:53:09'That's created a small garden and patio area for both properties.
0:53:09 > 0:53:12'How much has the project cost so far?'
0:53:12 > 0:53:17Our original budget was based on a figure of £100,000.
0:53:17 > 0:53:19We've currently spent £108,000
0:53:19 > 0:53:23and we anticipate when the project's totally finished,
0:53:23 > 0:53:25we'll probably spend about £140,000.
0:53:25 > 0:53:28'With the £38,000 they paid at auction,
0:53:28 > 0:53:32'that takes their total investment to £178,000.
0:53:32 > 0:53:37'The delay in finishing the work was only because they didn't cut corners
0:53:37 > 0:53:40'and wanted to make sure it was perfect.
0:53:40 > 0:53:43'It wasn't just their builders who've been involved.'
0:53:43 > 0:53:45Other than the professional builders we employed,
0:53:45 > 0:53:50my brother gave us a hand a few times knocking render off walls.
0:53:50 > 0:53:53My cousin came up and gave us a hand.
0:53:53 > 0:53:56Everybody local has took an interest in the project, so it's been nice.
0:53:56 > 0:54:00Everybody's been very generous. We've really appreciated it.
0:54:02 > 0:54:06'We asked two local property experts for their opinions on the house
0:54:06 > 0:54:08'and prospects for the cottage.
0:54:08 > 0:54:10'First, the auctioneer who sold it.'
0:54:10 > 0:54:15It's been a huge transformation from being a pub.
0:54:15 > 0:54:17The bar area's now the lounge.
0:54:17 > 0:54:21The snug is now the kitchen. It's a functional house.
0:54:21 > 0:54:25I think the house is very spacious, done to a high standard.
0:54:25 > 0:54:28The cottage, I think, because it's on three floors,
0:54:28 > 0:54:31when that's finished, it will be very nice.
0:54:31 > 0:54:33The cottage next door,
0:54:33 > 0:54:37which is work in progress, I think it'll be very appealing
0:54:37 > 0:54:39and I'm looking forward to the finished product.
0:54:39 > 0:54:42I think the loft accommodation in the house,
0:54:42 > 0:54:45although you can't class it as a bedroom,
0:54:45 > 0:54:48once you're up there, it's quite spacey
0:54:48 > 0:54:51and I like the exposed brick on both ends.
0:54:51 > 0:54:53'Once both properties are finished,
0:54:53 > 0:54:55'how much rental income could they earn?'
0:54:57 > 0:55:01The house would achieve in the region of £500 per calendar month,
0:55:01 > 0:55:05with the cottage achieving more in the region of £400 per calendar month.
0:55:05 > 0:55:10The cottage, when it's renovated, could achieve £450 per calendar month.
0:55:10 > 0:55:15The rental valuation for the house would be £550 per calendar month.
0:55:15 > 0:55:17'If both were let,
0:55:17 > 0:55:22'those rental valuations would produce a yield of 6%.'
0:55:22 > 0:55:26I think that's very good for this area, for rental,
0:55:26 > 0:55:28though we'd really like a sale.
0:55:28 > 0:55:34'Heather and Brian will have invested around £178,000 in both properties.
0:55:34 > 0:55:38'How much are they worth on the market now?'
0:55:38 > 0:55:40Dealing with the house first of all,
0:55:40 > 0:55:43I think you would get in the region of £145,000.
0:55:43 > 0:55:48I think the house could be put on the market at £145,000.
0:55:48 > 0:55:52The cottage, when it's fully renovated, could be put on the market at £110,000.
0:55:52 > 0:55:57The cottage, when finished, you could get in the region of £100,000.
0:55:58 > 0:56:03'Those valuations could produce a profit of £67,000 to £77,000,
0:56:03 > 0:56:06'before tax and expenses.'
0:56:06 > 0:56:09The cottage valuation is as we expected.
0:56:09 > 0:56:13- We think the valuation on the house is, to be honest...- A bit low.
0:56:13 > 0:56:17- ..is low.- Considering this is more of a character property,
0:56:17 > 0:56:21I think we can afford to put it in a little bit higher.
0:56:21 > 0:56:24I think we'll achieve higher than that.
0:56:24 > 0:56:28'How close are they to putting the house on the market?'
0:56:28 > 0:56:32Our builder's gone off on another project for a month.
0:56:32 > 0:56:34What we'll do in that month is come into here
0:56:34 > 0:56:38- and carry out the final clean. - And we'll do the snagging.
0:56:38 > 0:56:41And the general bits and pieces that need doing.
0:56:41 > 0:56:44Then when Albert comes back in about four weeks' time,
0:56:44 > 0:56:46we can start on the cottage again.
0:56:46 > 0:56:49- Still plenty to do. - And a little rest.
0:56:49 > 0:56:52Well, yeah, that will be nice.
0:56:55 > 0:57:00That's it for today's show. Join us for another ride on the renovation roller coaster.
0:57:00 > 0:57:03- Look forward to seeing you then. Goodbye.- Goodbye.
0:57:21 > 0:57:24Subtitles by Red Bee Media Ltd
0:57:24 > 0:57:27E-mail subtitling@bbc.co.uk