0:00:02 > 0:00:07Hello. Property markets go up and down, but we all need a roof over our heads.
0:00:07 > 0:00:12Not only that. If you buy wisely you can watch your money grow.
0:00:12 > 0:00:19So if it's a home or an investment, one place you could look is at the auctions.
0:00:42 > 0:00:48Before you buy at auction, it's really important you've got the time to dedicate to the project.
0:00:48 > 0:00:53You might be surprised at how much renovating a property takes over your life.
0:00:53 > 0:00:58So here are the properties that inspired the buyers today.
0:00:58 > 0:01:05It's time to raise a glass to this Wiltshire pub I first saw four years ago.
0:01:05 > 0:01:07It's going to be a lot of work.
0:01:08 > 0:01:14An apartment in Kent takes my breath away...as it's up four flights of stairs!
0:01:14 > 0:01:18Time now for a bit of a breather! I got her.
0:01:18 > 0:01:23And in Newcastle, occasionally I know I babble on a bit,
0:01:23 > 0:01:26but sometimes one word will suffice.
0:01:26 > 0:01:28Wow!
0:01:29 > 0:01:35All these properties have been sold at auction. We'll find out who bought them and what they paid
0:01:35 > 0:01:38when they went under the hammer.
0:01:40 > 0:01:45Welcome to the medieval city of Salisbury in Wiltshire.
0:01:45 > 0:01:51Visible from miles around is Salisbury Cathedral with the country's tallest spire.
0:01:51 > 0:01:58Today we're catching up with the renovation of a listed property I first saw in 2009.
0:01:58 > 0:02:02The property I'm here to see is just two minutes from the city centre.
0:02:02 > 0:02:05Admittedly, over the bypass,
0:02:05 > 0:02:07but it sounds really interesting.
0:02:07 > 0:02:12Built over 500 years ago, it was a former pub.
0:02:12 > 0:02:16Looks pretty impressive. OK, it needs tarting up for sure,
0:02:16 > 0:02:19but look at that roof. Fantastic.
0:02:19 > 0:02:26It had a guide price of 150,000 quid. Is it last orders or will it get an extended licence?
0:02:26 > 0:02:30# We're going down the pub... #
0:02:32 > 0:02:37The bad news is that this pub's days of pulling pints are long gone.
0:02:37 > 0:02:43The good news is that this lot comes complete with detailed planning permission to convert it
0:02:43 > 0:02:45into four separate dwellings.
0:02:45 > 0:02:50The property is divided into three sections. Behind the pub is a larger building
0:02:50 > 0:02:55that was presumably accommodation in the past. Plus, there's a separate coach house.
0:02:55 > 0:02:58So what has the inside got to offer?
0:02:58 > 0:03:02So what have we got? A sort of kitchen area there.
0:03:02 > 0:03:09Stairs up to one of the higgledy piggledy bits going there, then through to what was the main bar.
0:03:09 > 0:03:15It's always a bit strange coming into places like this with no punters, no beer,
0:03:15 > 0:03:19but it's certainly got character. The low beams, that fireplace.
0:03:19 > 0:03:24I bet that has an inglenook. That's absolutely glorious.
0:03:24 > 0:03:28A lot of work to do straight away, but you have got planning permission.
0:03:28 > 0:03:33But I can see straight away it's going to be a lot of work.
0:03:33 > 0:03:39'This place is huge. The pub has two bar areas, plus the kitchen we saw to start with.
0:03:39 > 0:03:44'Upstairs, there are several bedrooms and numerous passageways linking the two buildings.
0:03:44 > 0:03:50'It's not going to be easy dividing this place up into separate units,
0:03:50 > 0:03:55'but it's looking well worth that guide price of £150,000.'
0:03:55 > 0:03:59So how would you go about maximising the investment potential?
0:03:59 > 0:04:06A lot of the work has already been done. Plans have been passed for converting the whole place
0:04:06 > 0:04:10into separate units. Basically, three flats in this bit
0:04:10 > 0:04:14and then the coach house as a separate unit.
0:04:14 > 0:04:20'So you could have three flats in the two main buildings and another in the outbuilding.
0:04:20 > 0:04:23'The upside is that there's lots of history as this was built in 1500.
0:04:23 > 0:04:29'The downside? It's listed and there's no grassy garden, just the parking area.
0:04:29 > 0:04:32'So would this make financial sense?
0:04:32 > 0:04:36'Say this was snapped up for around the guide price of £150,000
0:04:36 > 0:04:43'and had around £300,000 spent on it to convert it into four separate dwellings.
0:04:43 > 0:04:47'You'd spend around £450,000, a lot of money,
0:04:47 > 0:04:51'but even with that outlay, there could still be a healthy profit.'
0:04:51 > 0:04:56Worth doing. Certainly, the drinks would be on you.
0:04:56 > 0:05:00Well, not a five-minute job to sort this one out,
0:05:00 > 0:05:04but the hard work's been done in getting the planning permission
0:05:04 > 0:05:08and get the figures right and there's a lot of money to be made.
0:05:08 > 0:05:11So let's see who bought the old pub.
0:05:12 > 0:05:18Lot 18. Grade 2-listed public house. Our guide is £150,000.
0:05:18 > 0:05:20Straight in at 150?
0:05:20 > 0:05:24150, right at the back. 155, on the aisle. 160.
0:05:24 > 0:05:27165, by the door.
0:05:27 > 0:05:33- There was a lot of interest and we rejoin the bidding at £216,000.- At 216.
0:05:33 > 0:05:37218. 218. 220.
0:05:37 > 0:05:40At 220. 222.
0:05:40 > 0:05:42224. 224.
0:05:42 > 0:05:44226. 228.
0:05:44 > 0:05:47228. 230.
0:05:47 > 0:05:53232, sir? 232. I'll take one if it helps, sir. 233. On the aisle.
0:05:53 > 0:05:56234. 235.
0:05:56 > 0:05:59On the aisle. At 235,000.
0:05:59 > 0:06:02236, sir? 236. For the first time, then.
0:06:02 > 0:06:04At 237.
0:06:04 > 0:06:07237. 237.
0:06:07 > 0:06:09238. 238.
0:06:09 > 0:06:13At 238,000. Standing tall.
0:06:13 > 0:06:16239. 239.
0:06:16 > 0:06:17240.
0:06:17 > 0:06:23240. First time at 240. For the second time at 240.
0:06:23 > 0:06:27Third and last time, then. At 240.
0:06:27 > 0:06:30Congratulations in red.
0:06:30 > 0:06:34The new owners of the former inn are Jim and his wife Pam.
0:06:34 > 0:06:40They have six children between them, three of whom have come to see what they've bought.
0:06:40 > 0:06:45Pam's background is in business banking and Jim's a carpenter by trade.
0:06:45 > 0:06:52They live on a farm and have two other properties they rent out. I was keen to find out their plans.
0:06:52 > 0:06:56- Jim, Pam, lovely to meet you both. Congratulations.- Thank you.
0:06:56 > 0:07:02- Got yourself an old pub.- We have. - Tell me why you wanted to buy it. - I'm a Salisbury boy.
0:07:02 > 0:07:08I'm a carpenter. I've worked on a number of old projects in Salisbury.
0:07:08 > 0:07:12Normally, clients buy old buildings that I'll do up for them.
0:07:12 > 0:07:17And Pam has said to me, "Wake up, Jimbo. We could do this ourselves."
0:07:17 > 0:07:21Why were you so keen to push Jim into doing this for yourselves?
0:07:21 > 0:07:27Probably because we've spent a long time doing this for other people.
0:07:27 > 0:07:32I said, "We've got a little bit of spare money. Let's try it for ourselves."
0:07:32 > 0:07:39We didn't like the scheme that had been presented, the new units, so we met the conservation officer,
0:07:39 > 0:07:43had a meeting with the planners prior to the auction.
0:07:43 > 0:07:47We've presented a new scheme which doesn't split it into flats.
0:07:47 > 0:07:50It keeps it in block buildings.
0:07:50 > 0:07:56'The couple are putting their knowledge and experience to good use.
0:07:56 > 0:07:59'They've decided to change the plans.'
0:07:59 > 0:08:04- Talk me through what we've got. Start with the blue one. - It's the standalone unit.
0:08:04 > 0:08:10We'll do the orange, pink and green units - the front three - simultaneously,
0:08:10 > 0:08:13with the standalone unit being done last.
0:08:13 > 0:08:18Let's talk about the three you're going to start with.
0:08:18 > 0:08:23This is the tallest unit. We've got a kitchen, a study and then a dressing room.
0:08:23 > 0:08:28- The orange one, a bit more simple. Just two storeys.- A one-bed unit.
0:08:28 > 0:08:33Finally, the pink unit, which is where we are now.
0:08:33 > 0:08:36- Bar and everything's going. - Unfortunately.
0:08:36 > 0:08:40- Keeping the fireplace?- It's staying. It's been here forever.
0:08:40 > 0:08:45- It's utilising the space. - It will just make life much easier to block them.
0:08:45 > 0:08:51Instead of having flying freeholds and flats, we have four houses, which makes far more sense.
0:08:51 > 0:08:57'Before they could start on it, the revised planning application would have to be approved.
0:08:57 > 0:09:01'They anticipated the four conversions would cost around £250,000
0:09:01 > 0:09:06'and Jim planned to do a lot of the work himself.
0:09:06 > 0:09:13'In 2011, we returned to catch up on the progress of this huge undertaking.
0:09:18 > 0:09:25'Outside, there have been some big changes to the former pub and the building directly behind it.
0:09:25 > 0:09:31'But the work on the separate coach house at the back has yet to start.
0:09:32 > 0:09:36'Inside, the work is completely finished in the former pub,
0:09:36 > 0:09:43'where two new houses were built. The first, a two-bedroom home, has a large, open-plan living area
0:09:43 > 0:09:45'where the former bar was.
0:09:45 > 0:09:50'All the timber's been restored, as well as the fireplace.
0:09:50 > 0:09:56'On the other side of the chimney breast, a lovely kitchen's been built.
0:09:56 > 0:10:01'And they made a great discovery when they started to remove the old fireplace.'
0:10:02 > 0:10:08When we bought the pub, there was a planted-on fireplace at the front.
0:10:08 > 0:10:12We thought we'd remove that. We didn't expect anything behind it.
0:10:12 > 0:10:16We took out three fireplaces before we got to this inglenook,
0:10:16 > 0:10:24which unfortunately was not in a good state this side, so we've had to reconstruct that,
0:10:24 > 0:10:29but I think it looks really lovely now. We're really pleased with it.
0:10:30 > 0:10:35'Upstairs there are two bedrooms, both lovingly restored
0:10:35 > 0:10:39'and full of original character and charm.
0:10:45 > 0:10:51'The bathroom remains in the same location, but is completely refitted.
0:10:53 > 0:10:58'The real bonus is up in the attic where two more rooms have been created.
0:10:58 > 0:11:04'Getting access to the attic required a new staircase, as Jim explains.'
0:11:04 > 0:11:08We've had headroom issues, as you can see.
0:11:08 > 0:11:14You've just got to mind your head. However, it's much safer than what we did have.
0:11:14 > 0:11:18I tried to light the staircase with an old-fashioned skylight,
0:11:18 > 0:11:21so there's plenty of natural light.
0:11:21 > 0:11:25This was one of the hardest bits, getting the staircase to work.
0:11:28 > 0:11:33'The second property they've completed is a smaller one-bedroom cottage,
0:11:33 > 0:11:39'built on the right-hand side of the former pub. The living area and kitchen are really delightful.
0:11:43 > 0:11:50'Up on the first floor, there may be only one bedroom, but it's also beautifully finished
0:11:50 > 0:11:54'and they've managed to fit in a separate bathroom.
0:11:57 > 0:12:02'The property's over 500 years old and has listed status,
0:12:02 > 0:12:07'so any work had to meet stringent conservation regulations.'
0:12:07 > 0:12:13Almost enjoyed every day here. I enjoy a challenge and this building has been a real challenge!
0:12:13 > 0:12:19'The roof needed serious attention to stop the leaks and the bricks in the chimney were removed,
0:12:19 > 0:12:22'repaired and rebuilt.
0:12:22 > 0:12:27'But how much have they had to spend getting these two houses completed?'
0:12:27 > 0:12:33We've spent about £140,000 so far, but for that we've done two-and-a-half of the buildings.
0:12:33 > 0:12:37You know, the roofs have been done on both buildings.
0:12:37 > 0:12:41The building behind has already been plastered and first fixed, mainly.
0:12:41 > 0:12:47'They anticipate it'll take another year to finish the two-bed house behind the former pub
0:12:47 > 0:12:52'and the two-bedroom coach house. For now the plan is to rent the two furnished properties out
0:12:52 > 0:12:58'with Jim's two daughters, Rosie and Catherine, moving in to the two-bedroom house.
0:13:00 > 0:13:06'Join us later in the show to find out how Jim and Pam got on with the rest of the renovation.'
0:13:18 > 0:13:23# There'll be blue birds over
0:13:24 > 0:13:28# The white cliffs of Dover... #
0:13:28 > 0:13:34I am in Dover, but there's no sightseeing trip to the White Cliffs for me.
0:13:34 > 0:13:36Today it's all about business.
0:13:38 > 0:13:43Property prices in Dover aren't exactly skyrocketing at the moment,
0:13:43 > 0:13:47but rental is still very strong. So what does that equal?
0:13:47 > 0:13:53The chance to pick up a property for your portfolio, which is what I have in mind with this lot.
0:13:53 > 0:13:58Two bedrooms, top floor, £50,000-£55,000.
0:14:01 > 0:14:03So far, so good.
0:14:03 > 0:14:07And talking of far, I'm heading four floors up.
0:14:07 > 0:14:12# Going up the winding stair
0:14:12 > 0:14:17# I hope that I'll see you there... #
0:14:18 > 0:14:22So before we've even got in, there's something to bear in mind.
0:14:22 > 0:14:26There's no lift! The flat is on the top floor.
0:14:26 > 0:14:31If you are a mum with a buggy, this one is not going to be first on your list.
0:14:31 > 0:14:33Excuse me. Another floor to climb.
0:14:33 > 0:14:41# Climbing to the top I'll tell you anything you want... #
0:14:41 > 0:14:45'The good news is that the communal areas are clean and well-maintained,
0:14:45 > 0:14:49'although you may be short of volunteers come moving day!'
0:14:49 > 0:14:54Time now for a bit of a breather. Phew! I got here.
0:14:54 > 0:14:55OK.
0:14:55 > 0:15:00It's not quite to my taste. I'd say this flat is very dated,
0:15:00 > 0:15:07but you do have fantastic space. A lovely square kitchen with a little area for a utility room.
0:15:07 > 0:15:13Lots of different styles of wood going on in there. Very clashy.
0:15:13 > 0:15:17Lovely lounge space again. Two windows with great views.
0:15:17 > 0:15:22Everything in this property has amazing attention to detail.
0:15:22 > 0:15:28Look at this - you've got wood effect stickers around the doors on the frames. Look at that.
0:15:28 > 0:15:32(It doesn't look like real wood, though.)
0:15:32 > 0:15:36You've got a loo, a bathroom, again loads going on in there.
0:15:36 > 0:15:40I'd like to rip the tiles off. Really good-sized double bedroom.
0:15:40 > 0:15:47And here is the second double bedroom. Really nice to think you've got two rooms for big beds.
0:15:47 > 0:15:50This room is fantastic. You have views over Dover.
0:15:50 > 0:15:55So I don't need to tell you. It's dated, it needs doing again,
0:15:55 > 0:16:00but you've got a wonderful space, a great guide price and it could be a fantastic yield.
0:16:00 > 0:16:06# It all starts adding up, baby After a while... #
0:16:09 > 0:16:13This really is adding up to be a potentially great buy.
0:16:13 > 0:16:19You may not be a fan of purpose-built flats, but these look clean and tidy
0:16:19 > 0:16:25with fabulous views, even including, on clearer days, Dover Castle.
0:16:31 > 0:16:38We asked a local estate agent for his opinion on the flat with a guide price of £50,000-£55,000.
0:16:39 > 0:16:43The main selling point is its proximity to the town.
0:16:43 > 0:16:46That will help sell or let it.
0:16:46 > 0:16:53It needs a complete overhaul and refresh, changing kitchen, bathroom and redecorating.
0:16:53 > 0:16:57It has got replacement windows and central heating.
0:16:57 > 0:17:02It's really redecoration and replacing the fittings.
0:17:02 > 0:17:04How well set is it for a sale?
0:17:04 > 0:17:09The current value here is probably in the order of £60,000-£65,000.
0:17:09 > 0:17:15Once improved, that will be enhanced to £75,000, maybe towards £80,000.
0:17:15 > 0:17:23- And rental valuation?- I think the rent of this property at the moment is £450 per calendar month.
0:17:24 > 0:17:29A good little home with lovely views and a yield that's better than the bank.
0:17:29 > 0:17:33Let's see who went for it at the auction.
0:17:33 > 0:17:37Lot 5. Got a guide of £50,000-£55,000.
0:17:37 > 0:17:41£50,000 I have. 52? 52 I am bid.
0:17:41 > 0:17:4454 is bid. And 56?
0:17:44 > 0:17:48£55,500 I am bid. 58 do I see?
0:17:48 > 0:17:5258 I have. 59 I'm bid. And 60? And 60.
0:17:52 > 0:17:55And 61. And 2. And 3?
0:17:55 > 0:17:5863.
0:17:58 > 0:18:0064. And 65?
0:18:00 > 0:18:0264 and a half.
0:18:02 > 0:18:05And 65? And 65. And a half?
0:18:05 > 0:18:10At £65,000, the bid is still sitting.
0:18:10 > 0:18:12At 65,000 for the first time.
0:18:12 > 0:18:15£65,000, second time.
0:18:15 > 0:18:21Gentleman's bid, sitting. 65,000, third and final time. At 65,000. Are you all done?
0:18:21 > 0:18:25- Sold at 65,000. - That successful £65,000 bid,
0:18:25 > 0:18:30£10,000 over the top end of the guide price, was made by Axel.
0:18:32 > 0:18:36He's from Germany, but moved here with work five years ago.
0:18:36 > 0:18:41That's where he met his partner Janet, who's also investing in this.
0:18:41 > 0:18:45I went to meet them to hear their story.
0:18:45 > 0:18:50Janet and Axel, congratulations. What was it like at the auction for you?
0:18:50 > 0:18:54- Very nerve-racking.- Yeah. - What budget had you set?
0:18:54 > 0:18:57Maximum 65,000.
0:18:57 > 0:19:03- So you paid your top whack, then! - Yeah.- Yeah.- Have you bought this to add to your rental portfolio?
0:19:03 > 0:19:07Not really. Plan A is to do it up and then sell it on.
0:19:07 > 0:19:12- So you want to flip it.- Yes.- I'm quite surprised. You paid £65,000.
0:19:12 > 0:19:17Is there that much in it to flip it? These are good rental machines.
0:19:17 > 0:19:21- Would that be Plan B for you? - Yeah, definitely.
0:19:21 > 0:19:25What is it about property developing? Why go down this road?
0:19:25 > 0:19:29- I don't know.- It's more like a hobby.- Something to do.
0:19:29 > 0:19:36Something to do in your free time and to test it for our house, which needs refurbishing as well.
0:19:36 > 0:19:40- So it's a bit of an experiment. - Yeah.- Do you get a lot of free time?
0:19:40 > 0:19:41No!
0:19:41 > 0:19:45- Do you both work together?- Yep. - What do you do?
0:19:45 > 0:19:50I work as a project manager in Dover for a logistics company.
0:19:50 > 0:19:53And I work as a credit controller.
0:19:53 > 0:19:58- Do you work five days a week?- Yes. - Every day for a full day. When will you do this?!
0:19:58 > 0:20:03- Weekends.- Every weekend, you'll put your heart and soul into this flat? - Yeah.
0:20:03 > 0:20:07'And that heart and soul had better be on full throttle
0:20:07 > 0:20:14'as Axel and Janet want the work completed in three months and for a budget of £6,000.'
0:20:14 > 0:20:20So what do you think you're going to do to turn it around and make it saleable?
0:20:20 > 0:20:26- First of all, getting rid of all the Artex in all the rooms. - Yippee!
0:20:26 > 0:20:30- Every room is nearly artexed. - Let's move on to the kitchen.
0:20:30 > 0:20:35- You are going to replace the kitchen?- Yes.- It'll be replaced.
0:20:35 > 0:20:42- Brand new kitchen?- Yeah. - It's all coming down between the little room with the boiler
0:20:42 > 0:20:45- and the kitchen, to open it up. - You're not keeping it?
0:20:45 > 0:20:50I quite like that space. It's good to hide away some utility bits.
0:20:50 > 0:20:57The flat downstairs did it and it looks beautiful. You can use it as a small dining area as well.
0:20:57 > 0:21:01- It opens the space right up. - Bathroom, Axel?
0:21:01 > 0:21:05The bathroom will be all tiled, new bathroom.
0:21:05 > 0:21:07The new bath comes tomorrow.
0:21:07 > 0:21:12New toilet, tiled from floor to ceiling.
0:21:12 > 0:21:15And the floors will be tiled as well.
0:21:15 > 0:21:19- Wow. So you're going for it. You are doing everything.- Yeah.
0:21:19 > 0:21:24Please tell me it's you two who will do a lot of the work.
0:21:24 > 0:21:29- We're doing all the donkey work. - You are?- Yeah.- As in...?
0:21:29 > 0:21:33Stripping the wallpaper, ripping the kitchen out, bathroom out.
0:21:33 > 0:21:36Who's going to put the kitchen in?
0:21:36 > 0:21:41We'll get a kitchen fitter, once we build the kitchen units.
0:21:41 > 0:21:46We have a plumber ready to put the bathroom in, an electrician to do all the electrics.
0:21:46 > 0:21:50It'll all be flat, not surface.
0:21:50 > 0:21:54Have you thought about having four flights of stairs?!
0:21:54 > 0:21:58I even got out of breath coming through the front door!
0:21:58 > 0:22:02- We've had practice with emptying it. - Yeah.
0:22:02 > 0:22:06How do you think it will be with other buyers? Will it put some off?
0:22:06 > 0:22:10- Probably.- It probably will, because of being so high.
0:22:10 > 0:22:17- If we make it really nice it should be OK, I think.- On the other hand, you have the views,
0:22:17 > 0:22:21- to the castle and the sea. - That's what to tell the buyers!
0:22:21 > 0:22:25Because of that you get the amazing views.
0:22:25 > 0:22:30Good luck. I can't wait to see it. I hope you stick to the budget. It'll be brilliant.
0:22:30 > 0:22:33- Well done.- Thank you.
0:22:33 > 0:22:37Axel and Janet have a good little flat here,
0:22:37 > 0:22:43but really I think it's a good little renter, not one to flip in the near future.
0:22:43 > 0:22:48Still, I can't wait to see it finished. Find out how it goes later on.
0:22:48 > 0:22:55Coming up: in Newcastle, I hope the period features in this place remain after it is renovated.
0:22:55 > 0:22:59I guess it'll come down to personal preference.
0:22:59 > 0:23:04Are Axel and Janet jumping for joy about their renovation in Dover?
0:23:04 > 0:23:09We are quite pleased the project is finished. Hooray, hooray!
0:23:10 > 0:23:14But first we catch up with Jim and Pam in Wiltshire.
0:23:14 > 0:23:18It's been a challenge. Hard work, but it's been good.
0:23:21 > 0:23:27We return now to Salisbury in Wiltshire where, back in 2009,
0:23:27 > 0:23:31Jim and his wife Pam bought this 500-year-old inn
0:23:31 > 0:23:35and two further buildings for £240,000.
0:23:35 > 0:23:41Between them, they have six children. Jim's a carpenter who restores old buildings,
0:23:41 > 0:23:45but this time it was going to be a little different.
0:23:45 > 0:23:49Normally, clients buy old buildings that I do up for them.
0:23:49 > 0:23:54And Pam has said to me, "Come on, wake up, Jimbo. We could do this."
0:23:54 > 0:23:58The building had planning permission for conversion into flats,
0:23:58 > 0:24:03but the couple obtained revised plans to convert to four houses.
0:24:04 > 0:24:09When we first returned in 2011, the pub had been divided
0:24:09 > 0:24:14into two lovely homes that were let to Jim's daughters,
0:24:14 > 0:24:21but work on Tollgate House was only just beginning and the coach house was still a wreck.
0:24:21 > 0:24:24It's now one year and 10 months later
0:24:24 > 0:24:28and the restoration of both properties is finally complete.
0:24:31 > 0:24:37And what a wonderful finish Jim has achieved in both houses
0:24:37 > 0:24:40even though they have very different characters.
0:24:40 > 0:24:46The coach house with the blue exterior paintwork is absolutely beautiful.
0:24:46 > 0:24:51Jim has taken old materials and merged them seamlessly with the new.
0:24:51 > 0:24:57The timbers have been lovingly restored from a building riddled with woodworm and collapsing floors.
0:24:59 > 0:25:03Remember, this coach house has never been a home before.
0:25:03 > 0:25:08OK, well, we're in the coach house. and what we've done here is...
0:25:08 > 0:25:12The room that I'm in is obviously the kitchen. The wall was here.
0:25:12 > 0:25:17We've taken the wall out to make the kitchen a little bigger.
0:25:17 > 0:25:23We've introduced a new wall that we've put in here, trying to follow the theme
0:25:23 > 0:25:28to avoid spoiling its character. This new floor warms up the building.
0:25:28 > 0:25:32It's a suspended timber floor with all the insulation.
0:25:32 > 0:25:37'The open-plan kitchen incorporates the bright and airy living area,
0:25:37 > 0:25:41'not something you usually associate with an old beamed property.
0:25:41 > 0:25:48'Then beyond that is a second, smaller space with a utility room and a staircase leading to
0:25:48 > 0:25:50'this study area and en suite.
0:25:52 > 0:25:58'And more restored timbers. The conservation officer insisted on another staircase
0:25:58 > 0:26:05'to access the other end of the first floor where there are two bedrooms and a bathroom.'
0:26:05 > 0:26:07We've had to put two staircases in.
0:26:07 > 0:26:12The beamed wall you see behind me. We weren't allowed to cut a hole through that
0:26:12 > 0:26:15to get access to that bedroom.
0:26:15 > 0:26:18And we've had to put in new walls to create bedrooms.
0:26:18 > 0:26:24This was a completely open area. I spent a lot of time sourcing the timber for here.
0:26:24 > 0:26:29'Jim's love for this property is clear to see.'
0:26:29 > 0:26:36Yeah. He has a real passion for listed and historic buildings and he loves the job he does.
0:26:36 > 0:26:40He's say he's enjoyed every minute. Well, almost, I would say!
0:26:40 > 0:26:44'Next to the blue coach house is the red-painted Tollgate House,
0:26:44 > 0:26:50'which you enter through the kitchen. But you go up a flight of stairs into the sitting room.'
0:26:50 > 0:26:55Something that's a bit complicated is it's split-level.
0:26:55 > 0:27:00It's up and down. You go up a small flight of stairs and go into a study
0:27:00 > 0:27:03where there's a little shower room.
0:27:03 > 0:27:09Going down from the sitting room, down through a little landing area, we go down into a new area.
0:27:09 > 0:27:15We call that the games room and it has another little downstairs loo.
0:27:15 > 0:27:21'Heading up the stairs you reach the first floor where there are two bedrooms.
0:27:21 > 0:27:29'There's also a dressing room and, right at the end of the corridor, the main family bathroom.
0:27:29 > 0:27:35'Currently, Jim's daughters Rosie and Catherine are renting the old tollgate and stable cottage
0:27:35 > 0:27:40'and have added their own personal touches.
0:27:42 > 0:27:47'Back in 2009, Pam and Jim paid £240,000 for the three buildings.
0:27:47 > 0:27:52'Now all the properties have been finished, how much have they spent?'
0:27:52 > 0:27:57When we'd done the first two, I think we'd spent 140,
0:27:57 > 0:28:01which was two and half of this one. We'd first fixed this.
0:28:01 > 0:28:06We've spent another 100 on top of that, so 240, and I think our budget was 250,
0:28:06 > 0:28:11so we have managed to keep the lid on it, which is no mean feat!
0:28:11 > 0:28:19'Added to their initial purchase price, that takes their total investment here to £480,000
0:28:19 > 0:28:23'and there's a lasting record of all their hard graft.'
0:28:23 > 0:28:27The conservation officer wanted some reference to the pub.
0:28:27 > 0:28:31We already had the existing sign, so we had a long chat about it
0:28:31 > 0:28:35and decided that it would be nice to re-create the sign
0:28:35 > 0:28:38and put that up as an acknowledgement that it was a pub.
0:28:38 > 0:28:44So, they commissioned a local artist, Robin Budden, who has included everyone.
0:28:44 > 0:28:47All our dogs are in the scene.
0:28:47 > 0:28:50My pigeons are here, my chickens are here.
0:28:50 > 0:28:53This is me. I'm taking the money.
0:28:53 > 0:28:59And the guys that you can see on the coach are all guys who helped me re-create these buildings.
0:29:01 > 0:29:05What will two local estate agents think of the two finished properties
0:29:05 > 0:29:08that are now as pretty as a picture?
0:29:10 > 0:29:15I think they've done a fabulous job, particularly with the coach house.
0:29:15 > 0:29:17The house is very interesting.
0:29:17 > 0:29:20It's split-level which is always popular with buyers
0:29:20 > 0:29:26with the games room downstairs, but also with some period features still, including the sash windows.
0:29:26 > 0:29:30I particularly like how they've exposed the period features
0:29:30 > 0:29:33and also how cleverly they've put the bathrooms in.
0:29:33 > 0:29:40Jim and Pam plan to let both properties, so how much do the experts think they could achieve?
0:29:40 > 0:29:44For the coach house, I would expect a rental of about £1,000 per month
0:29:44 > 0:29:47and for the townhouse, £1,100.
0:29:47 > 0:29:51I would put the coach house on the market for £1,100 per calendar month
0:29:51 > 0:29:55and I would put the townhouse on the market for £900 per month.
0:29:55 > 0:29:57That's strange that they should be...
0:29:57 > 0:30:02But if you take the middle ground on both, then we're happy with that.
0:30:02 > 0:30:06- Yeah, that's probably somewhere where we'd want it to be.- Yeah.
0:30:06 > 0:30:09What about re-sale valuations for the two houses?
0:30:09 > 0:30:15For the coach house, I'd expect that to achieve around £275,000.
0:30:15 > 0:30:18For the townhouse, approximately £240,000.
0:30:18 > 0:30:22I would put the coach house on the market for £300,000
0:30:22 > 0:30:27and I would put the townhouse on the market for £250,000.
0:30:27 > 0:30:32- Roughly where we thought they'd be. Coach house, probably a bit more than we thought.- Yeah.
0:30:32 > 0:30:36The whole project cost a total of £480,000.
0:30:36 > 0:30:42The combined sale value of the four dwellings comes to around £950,000,
0:30:42 > 0:30:46giving Pam and Jim a potential profit
0:30:46 > 0:30:48of around £470,000,
0:30:48 > 0:30:52minus the usual taxes and costs.
0:30:54 > 0:30:57Yeah, we are pleased. It's been a challenge,
0:30:57 > 0:31:03but it's been interesting and I think we've learnt a lot of lessons together.
0:31:04 > 0:31:08Jim's eldest son Andrew is keen to learn restoration skills,
0:31:08 > 0:31:11so he's going to be his next apprentice.
0:31:11 > 0:31:15Would they consider another restoration as challenging as this?
0:31:15 > 0:31:21Inevitably, I'm going to start following auctions and look for another opportunity.
0:31:21 > 0:31:27Whether it would be on this scale or not, it depends what comes along and what we think is viable, really.
0:31:27 > 0:31:29So wait and see, I think.
0:31:32 > 0:31:34Up to the north-east of England now
0:31:34 > 0:31:37to Newcastle upon Tyne.
0:31:37 > 0:31:42From its architecture to its nightlife, it's easy to fall in love with this city.
0:31:42 > 0:31:47I'm heading ten minutes out from the centre in search of a profitable property prospect.
0:31:47 > 0:31:51I'm in the suburb of Kenton, a really lovely residential area,
0:31:51 > 0:31:56so I'm already very excited to see the property that was up for auction -
0:31:56 > 0:32:02a three-bed semi-detached, had a guide price of 95,000 quid and that's it, look at it.
0:32:02 > 0:32:04It looks absolutely lovely.
0:32:04 > 0:32:08Double glazing, looks to be in reasonable condition, got a garage,
0:32:08 > 0:32:14and what's more exciting, similar properties around here go for almost double that guide price.
0:32:14 > 0:32:16What's not to love?
0:32:18 > 0:32:22Well, I don't love the big tree blocking out all the light
0:32:22 > 0:32:28and it's a shame the original stained glass has been in part replaced,
0:32:28 > 0:32:33but there is a lovely front door and I definitely feel good vibes from this property.
0:32:34 > 0:32:37Oh, wow!
0:32:38 > 0:32:40Look at that,
0:32:40 > 0:32:45a beautiful, wood-panelled entrance!
0:32:45 > 0:32:51That probably means the rest of the house hasn't been messed about with in a bad way since it was built.
0:32:51 > 0:32:53I love it. Fantastic, fantastic!
0:32:53 > 0:32:57Through the front door into this gorgeous area here,
0:32:57 > 0:33:00stairs up to the bedrooms there.
0:33:00 > 0:33:04A nice storage cupboard. I'm sorry, this is just brilliant.
0:33:04 > 0:33:08The lounge is over there. Slightly disappointed there's no fireplace.
0:33:08 > 0:33:11Clearly, you need to put something back,
0:33:11 > 0:33:14but onwards and through to the kitchen...
0:33:17 > 0:33:22Well, clearly, this is in need of a bit of sorting out.
0:33:22 > 0:33:28I love the tiles. I don't know if you can keep these, but this black and white with this pattern in it,
0:33:28 > 0:33:32it's so 19... What do you reckon? 1930s or so?
0:33:32 > 0:33:36I absolutely love it. Is it going to stay? Probably not.
0:33:36 > 0:33:42A slightly more dramatic change that I would contemplate making is taking out this wall
0:33:42 > 0:33:45because the kitchen should be the focal point of a house,
0:33:45 > 0:33:50so maybe take this wall out, open out between here and the room next door,
0:33:50 > 0:33:52but nice views out to the garden
0:33:52 > 0:33:56and I'm still sort of biased about this place.
0:33:56 > 0:34:00I don't think I can find anything that will put me off.
0:34:00 > 0:34:06# And all the love I have is especially for you... #
0:34:06 > 0:34:09Not many properties make me weak at the knees,
0:34:09 > 0:34:11but this one has such charm
0:34:11 > 0:34:17and beautifully preserved original features that I can't help falling in love with it.
0:34:17 > 0:34:21And the icing on the cake is that there's room for improvement.
0:34:21 > 0:34:26Creating that large kitchen-diner would be perfect for the back of the house
0:34:26 > 0:34:29and you would still have a separate lounge area at the front.
0:34:29 > 0:34:34You'd need to check if the wall was load-bearing before you could knock it down,
0:34:34 > 0:34:40but it's worth looking into because I think this place deserves someone's love and attention.
0:34:40 > 0:34:44And a little stroll up the stairs makes me feel very nostalgic.
0:34:44 > 0:34:50You half-expect to hear the music from the 1930s playing on an old gramophone downstairs
0:34:50 > 0:34:53and drifting up this amazing staircase.
0:34:53 > 0:34:57Not that I'm getting too romantic about this place!
0:34:57 > 0:35:02But lovely stained-glass windows in there and the wood panelling continues up here.
0:35:02 > 0:35:07One thing you might want to play around with is the bathroom, separate loo.
0:35:07 > 0:35:13Again these white tiles. It'd be lovely to save those. Whether or not you could, I don't know.
0:35:13 > 0:35:18Usually, I am a big fan of keeping the loo separate from the bathroom.
0:35:18 > 0:35:21Here, though, there are a lot of bits and pieces
0:35:21 > 0:35:24to do with the heating system and the hot water in the bathroom.
0:35:24 > 0:35:29If you played around with the central heating, put in a combi boiler,
0:35:29 > 0:35:33took all that woodwork and cupboards out, creating a lot of extra space,
0:35:33 > 0:35:39it may well in this instance be worth thinking about integrating the loo into the bathroom.
0:35:39 > 0:35:42It will come down to the personal preference of whoever bought it.
0:35:42 > 0:35:46There are three good-sized bedrooms up here as well
0:35:46 > 0:35:49and I adore the quirky windows.
0:35:49 > 0:35:52Of course, everything needs to be re-decorated,
0:35:52 > 0:35:58but I just hope it's done with a loving eye and in keeping with the character here.
0:35:58 > 0:36:01On top of that, out the back is a large garden.
0:36:01 > 0:36:08After some weeding and landscaping, just imagine how this could look on a summer's evening. Bliss!
0:36:08 > 0:36:11As much as I adore the period features,
0:36:11 > 0:36:16I suspect the roof may be original too, which is not such good news.
0:36:16 > 0:36:18It could be costly to remedy.
0:36:19 > 0:36:24We invited a local estate agent to share his opinion on this place
0:36:24 > 0:36:28which had a guide price of £95,000.
0:36:28 > 0:36:31I think the good thing about these properties,
0:36:31 > 0:36:34in this inconsistent market that we're in,
0:36:34 > 0:36:38is the combination of those nice, traditional features,
0:36:38 > 0:36:44panelled walls, lovely south-facing garden and the good potential here to create a very nice family home.
0:36:44 > 0:36:50My guess is it'll probably need a re-wire, a new central heating system and then re-decoration.
0:36:50 > 0:36:53That'll bring it up to a decent standard.
0:36:53 > 0:36:56Once renovated, what could it sell on for?
0:36:58 > 0:37:01Once renovated, with its current footprint,
0:37:01 > 0:37:07I would put a price on this property of between £200,000 and £210,000.
0:37:07 > 0:37:09And if they chose to let it?
0:37:09 > 0:37:11I would suggest a rental value
0:37:11 > 0:37:16of £650 to £700 per calendar month.
0:37:16 > 0:37:22Well, it's good to have a healthy suspicion of any property that you're thinking of buying
0:37:22 > 0:37:24by normal routes or by the auction.
0:37:24 > 0:37:29But in some instances, a real belter just comes out of the woodwork
0:37:29 > 0:37:32and that's exactly what this is.
0:37:32 > 0:37:36A cracking property, but not in the bad sense of the word.
0:37:36 > 0:37:39Let's see who spotted it when it went under the hammer.
0:37:39 > 0:37:43We've got this in with a price guide of £95,000-plus.
0:37:43 > 0:37:45Do I have 95 anywhere?
0:37:45 > 0:37:48Right at the back at 95.
0:37:48 > 0:37:4997?
0:37:49 > 0:37:5197 bid.
0:37:51 > 0:37:5399... 101?
0:37:55 > 0:37:58It's at 99,000. Is there anybody else?
0:37:58 > 0:38:00101 right on the back wall. 103?
0:38:00 > 0:38:02No?
0:38:02 > 0:38:04101 right on the back wall.
0:38:04 > 0:38:08I'll take one from either of you. A new bidder in, 103. 105.
0:38:08 > 0:38:11107. Gentleman in the cap at 107.
0:38:11 > 0:38:14109? 109 bid. 111.
0:38:15 > 0:38:17113. 115.
0:38:17 > 0:38:20117. 119.
0:38:20 > 0:38:22121...
0:38:22 > 0:38:25Gentleman in the baseball cap at 123?
0:38:25 > 0:38:26123 bid.
0:38:26 > 0:38:29125. 127.
0:38:29 > 0:38:31129. 131.
0:38:31 > 0:38:34133. 135.
0:38:34 > 0:38:37137. 139.
0:38:37 > 0:38:40Gentleman in the blue cap at 139...?
0:38:41 > 0:38:45Are you bidding in the blue baseball cap at 139?
0:38:45 > 0:38:47139 bid. 141.
0:38:47 > 0:38:50Back wall at 141. 143? 143 bid.
0:38:50 > 0:38:53145. 147.
0:38:53 > 0:38:54149.
0:38:54 > 0:38:55151.
0:38:55 > 0:38:58153. 155.
0:38:59 > 0:39:02157...? No?
0:39:02 > 0:39:08Gentleman in the blue baseball cap... You're both close together. Gentleman in the blue baseball cap at 155.
0:39:08 > 0:39:10I'll take one if it helps at 156?
0:39:11 > 0:39:15I'm selling to the gentleman in the blue baseball cap at £155,000.
0:39:15 > 0:39:18It's your last chance. It's going once at 155...
0:39:18 > 0:39:21For the second time at £155,000...
0:39:21 > 0:39:25Sold. Congratulations to the gentleman in the blue baseball cap.
0:39:25 > 0:39:27'Hiding under the brim of that hat was Graham.
0:39:27 > 0:39:35'He bid £60,000 over the guide price to acquire the property for £155,000.
0:39:36 > 0:39:42'He bought it with his girlfriend Lauren. She's a teacher while Graham is an electrician.
0:39:42 > 0:39:46'He has renovated three properties before this one.
0:39:46 > 0:39:50'I met up with the couple to hear what they had planned here.'
0:39:51 > 0:39:58- Lauren, Graham, lovely to meet you. - Nice to meet you. - Tell me why you wanted to buy it.
0:39:58 > 0:40:02We were looking for an investment property, somewhere we'd rent out,
0:40:02 > 0:40:05and if it failed to rent out or sell, we'd be happy moving into.
0:40:05 > 0:40:13- Right, OK.- Then we came here and decided that we wanted this house to live in.
0:40:13 > 0:40:18- So the whole plan has changed, has it?- Yeah, from the night before the auction.
0:40:18 > 0:40:22So, tell me what it was that you loved when you walked in.
0:40:22 > 0:40:26Just the size and the space. It's got a wow factor when you walk in.
0:40:26 > 0:40:32We love the original features and the area's really nice as well, so all round, really.
0:40:32 > 0:40:35# And all I wanna do
0:40:35 > 0:40:41# Is make you mine, mine, mine... #
0:40:41 > 0:40:47'It's great that they loved it so much that they decided to change their plans, but I'm not surprised.
0:40:47 > 0:40:50'There really is something about this place.
0:40:50 > 0:40:54'What do they intend to do to make it their ideal home?'
0:40:54 > 0:40:59The first thing we'll do is knock the wall down between the kitchen and the dining room
0:40:59 > 0:41:02and make a large, open-plan kitchen/diner.
0:41:02 > 0:41:04I think it'll be quite a social room.
0:41:04 > 0:41:10Just get everything stripped off, see what the walls are like. Apart from that, just generally update it,
0:41:10 > 0:41:13but try and keep anything that's original.
0:41:13 > 0:41:17So, tell me what it was that you loved when you walked in.
0:41:17 > 0:41:23I loved the apple tree in the garden. Not a lot really that's spectacular, but I loved that.
0:41:23 > 0:41:29And I liked all the original tiles and things, but looking at them now, they'll probably have to go.
0:41:29 > 0:41:35- So who's going to do the work? - Initially, I'll be doing a lot of the donkey work, stripping out.
0:41:35 > 0:41:39I'll be re-wiring it. Lauren, I'm sure, can come and help.
0:41:39 > 0:41:43Wallpaper-stripping and things like that I can definitely help with.
0:41:43 > 0:41:46'They'll also be getting help from friends and family.
0:41:46 > 0:41:52'They have a budget of 25 grand to play with and have given themselves eight months to do the work.
0:41:52 > 0:41:56'Being an electrician and doing a lot of the labour himself
0:41:56 > 0:42:00'will help Graham keep costs down, but will take more time.
0:42:00 > 0:42:04'But property developing wasn't his first choice of career.'
0:42:04 > 0:42:09- I left school, played football for a couple of years.- What level?
0:42:09 > 0:42:15I was a youth team player for Leicester City, then I signed professional with Swindon Town.
0:42:15 > 0:42:19- Oh, great.- But it didn't work out. - Right. It wasn't the life for you?
0:42:19 > 0:42:23Well, I didn't exactly live an athlete's lifestyle, so...
0:42:23 > 0:42:29'However, Graham does have a healthy attitude when it comes to gaining qualifications.
0:42:29 > 0:42:35'He is a qualified electrician and currently studying for a degree in Building Services Engineering.
0:42:35 > 0:42:39'At present, he is also renovating another property,
0:42:39 > 0:42:43'hence the eight months he has set himself to develop this one.'
0:42:43 > 0:42:50I've got another house that I have to finish. We're relying on finance from that to do work on this as well.
0:42:50 > 0:42:55We're going to have to move to my mother's house and we're renting our current place out,
0:42:55 > 0:42:59so she'll not want us there for too long.
0:42:59 > 0:43:01Congratulations to both of you.
0:43:01 > 0:43:06- I'm really happy for you. Great place.- Thanks.- Thanks very much.
0:43:08 > 0:43:14Well, no surprises, I guess, that Lauren and Graham had a complete change of heart
0:43:14 > 0:43:17when it comes to what they'll use this property for.
0:43:17 > 0:43:22They have, just as I did, fallen in love with it, and it's now going to be their home,
0:43:22 > 0:43:24complete with their own apple tree.
0:43:24 > 0:43:29How will they get on sorting it out? You can find out later in the show.
0:43:32 > 0:43:36It's time to return to the properties and find out how they have got on.
0:43:36 > 0:43:40- Has it been a developer's dream or a living nightmare?- Let's find out.
0:43:40 > 0:43:45'We're back in Dover now where, earlier, I met Axel and Janet.
0:43:45 > 0:43:50'They paid £65,000 at auction to purchase this top floor, two-bedroom flat.
0:43:50 > 0:43:56'It had fabulous views, but it took several flights of stairs to reach them.
0:43:56 > 0:43:59'This was to be their first renovation project
0:43:59 > 0:44:03'and they hoped it would keep them out of mischief for a while.'
0:44:03 > 0:44:07Why did you decide to go down the property developing road?
0:44:07 > 0:44:11- It's more or less like a hobby and... - Yeah, something to do.
0:44:11 > 0:44:17Something to do in your free time and to test it out for our own house which needs refurbishing as well.
0:44:17 > 0:44:24- So, it's a bit of an experiment for you both?- Yeah.- Yeah. - Do you get a lot of free time?- No.
0:44:24 > 0:44:26Just to make it a tad more challenging,
0:44:26 > 0:44:33the couple set themselves a terribly tight £6,000 budget and a timescale of three months.
0:44:33 > 0:44:36It's now been four months since I met them,
0:44:36 > 0:44:41so have they managed to take this dated pad and make it modern?
0:45:09 > 0:45:14As per their original plan, the wall in the kitchen has been knocked through to increase the space
0:45:14 > 0:45:16and new units put in.
0:45:16 > 0:45:21The bathroom and separate loo have been re-tiled with new suites added
0:45:21 > 0:45:24and it was adios to the Artex throughout.
0:45:24 > 0:45:28Not exactly a fun job, according to Janet.
0:45:28 > 0:45:33Horrendous. There was Artex in every room and it was awful to remove
0:45:33 > 0:45:35and to re-plaster.
0:45:35 > 0:45:40It was so expensive, it took so long and it was so messy, it was awful.
0:45:40 > 0:45:42It's over now.
0:45:42 > 0:45:47And when she says "expensive", she means £5,000
0:45:47 > 0:45:52which also included the tiling in the kitchen, bathroom and loo.
0:45:52 > 0:45:55What impact did that have on the budget overall?
0:45:55 > 0:45:59Well, we ended up spending 14,500,
0:45:59 > 0:46:04which is more than double the original budget.
0:46:04 > 0:46:08We said round about 6,000, but it went completely out of the window.
0:46:08 > 0:46:14This was new plastering and you can't stop in the middle. You have to finish it.
0:46:14 > 0:46:19They finished it in four months, just one month over their original timescale,
0:46:19 > 0:46:25but I think that was very impressive, given that they didn't just have this project on the go.
0:46:25 > 0:46:29To combine a full-time job and renovate a property is quite tough.
0:46:29 > 0:46:34We've been here every weekend, all weekend and there has been no breaks.
0:46:34 > 0:46:38# I can't wait for the weekend to begin... #
0:46:39 > 0:46:44If you want to get a refurbishment or renovation done and done quickly,
0:46:44 > 0:46:48you may need to be willing to wave goodbye to your weekends for a while.
0:46:48 > 0:46:54Axel and Janet also had to contend with getting rubble out and building materials in
0:46:54 > 0:46:56without the aid of a lift.
0:46:56 > 0:47:02To renovate a flat on the top floor of this block, well, the stairs are troublesome,
0:47:02 > 0:47:07only because you're just going up and down all the time. We don't need any exercise.
0:47:07 > 0:47:11It's money saved on gym membership, I suppose,
0:47:11 > 0:47:15but it sounds like they might be putting their feet up now for a while.
0:47:15 > 0:47:19We are actually quite pleased that we took it on
0:47:19 > 0:47:24and we are also quite pleased that the project is finished. Hooray, hooray!
0:47:27 > 0:47:33The property cost them 65,000 at auction and they paid 14,500 for the works,
0:47:33 > 0:47:36bringing their total outlay to £79,500.
0:47:39 > 0:47:42We invited two local property experts to take a look
0:47:42 > 0:47:45around this top floor flat.
0:47:45 > 0:47:48They've done it to a really nice, high standard. The finish is lovely.
0:47:48 > 0:47:51They've done a really nice job
0:47:51 > 0:47:54with the kitchen and bathroom and they have lovely views.
0:47:54 > 0:47:57I think it's been renovated to a very good standard.
0:47:57 > 0:47:59It's got everything you'd want -
0:47:59 > 0:48:05double glazing, central heating, newly decorated and it's been done to a good standard.
0:48:05 > 0:48:09Which brings me neatly on to my next subject - financial returns.
0:48:09 > 0:48:12What could this property sell for?
0:48:12 > 0:48:16I would recommend putting it on the open market at £95,000
0:48:16 > 0:48:19and accepting somewhere between £85,000 and £90,000.
0:48:19 > 0:48:24If we were to offer this flat for sale, we would market it at £95,000.
0:48:24 > 0:48:30- We are quite pleased that it is round about the 90 mark, yeah.- Yeah.
0:48:30 > 0:48:37If sold for 90,000, Janet and Axel could stand to make a pre-tax profit of 10,500
0:48:37 > 0:48:43and 15,500 if they manage to get that top valuation of £95,000.
0:48:43 > 0:48:49Even though it's definitely their plan B, I thought this would be an ideal flat for rental
0:48:49 > 0:48:52and I'm not the only one.
0:48:52 > 0:48:55The current market for sales is still pretty quiet,
0:48:55 > 0:48:58but the rental market is very buoyant in this area
0:48:58 > 0:49:02and this flat being in this location would rent very easily,
0:49:02 > 0:49:05so I would recommend to go down the rental route.
0:49:05 > 0:49:11With that in mind, how much would these estate agents put this on the rental market for?
0:49:11 > 0:49:14If we were to offer this flat for rent,
0:49:14 > 0:49:17we could achieve £575 per calendar month.
0:49:17 > 0:49:21As the flat's in very good condition and in a very nice location,
0:49:21 > 0:49:25I think you should market this at £600 per calendar month.
0:49:25 > 0:49:30- That's really good. I wouldn't have thought it would have gone for that much.- No.
0:49:30 > 0:49:35We thought round about the 500, 525 mark, but we're quite pleased with the rental values as well.
0:49:36 > 0:49:41If they did opt for letting it and got £600 per calendar month,
0:49:41 > 0:49:45they'd be looking at an impressive yield of over 9%,
0:49:45 > 0:49:52but Janet and Axel's plan was always to sell to free up funds and time to work on their own property,
0:49:52 > 0:49:57although with such a great result here, might they see themselves moving in?
0:49:58 > 0:50:00It's a lovely flat. I'm very tempted.
0:50:00 > 0:50:04That would be plan C - move in and do our property up.
0:50:09 > 0:50:13Back to Newcastle upon Tyne and the suburb of Kenton
0:50:13 > 0:50:16where this three-bedroomed semi sold for 155,000.
0:50:16 > 0:50:19I loved it and I wasn't the only one.
0:50:19 > 0:50:23Graham and girlfriend Lauren were looking for an investment property,
0:50:23 > 0:50:29but as soon as they saw this house with its lovely original features, they were smitten.
0:50:30 > 0:50:35We came here and decided that we wanted this house to live in.
0:50:35 > 0:50:40- So the whole plan has changed, has it?- Yeah, from the night before the auction.
0:50:40 > 0:50:4413 months later, I'm glad to see that tree has been removed,
0:50:44 > 0:50:48but how much love have they put into the inside?
0:50:48 > 0:50:52# Well, I can't give you anything but love
0:50:54 > 0:50:56# Baby
0:50:56 > 0:50:59# That's the only thing
0:50:59 > 0:51:02# I've plenty of... #
0:51:02 > 0:51:06It's a high-end finish from top to bottom and what I love most
0:51:06 > 0:51:11is the fact that they've managed to keep all the original features
0:51:11 > 0:51:14and blend them into a new and stylish modern decor.
0:51:16 > 0:51:22I'm so glad to see they've knocked down that kitchen wall as it's given them so much more room to play with.
0:51:22 > 0:51:25We wanted a bit of an open-plan feel,
0:51:25 > 0:51:31so that we could have dining tables, as well as kitchen and cooking space. We're really pleased with it.
0:51:31 > 0:51:34They've been knocking walls down upstairs too,
0:51:34 > 0:51:39joining the bathroom and toilet together, and what a beautiful finish!
0:51:39 > 0:51:43If it looks like the standard you'd find in a five-star hotel,
0:51:43 > 0:51:46well, there's a reason for that.
0:51:46 > 0:51:49On our travels we've been in a lot of nice hotels
0:51:49 > 0:51:55and every bathroom we admire and we think, "We'd love to have something like this in our house,"
0:51:55 > 0:52:00so we went for the natural stone and nice fittings to make it feel more luxurious.
0:52:00 > 0:52:03We're really pleased with it. It looks beautiful.
0:52:03 > 0:52:09Because they wanted to make this their perfect home, they've gone for a high-end spec all over the house.
0:52:09 > 0:52:12I just love this wood-burning stove.
0:52:12 > 0:52:15Right, well, what we found here,
0:52:15 > 0:52:18there was a '70s fireplace originally,
0:52:18 > 0:52:23so we had to do a little bit of investigative work, take that out.
0:52:23 > 0:52:27We noticed that a lot of the plasterwork was crumbling away,
0:52:27 > 0:52:33so we just kept hacking at it until we found this arch which holds up the structure of the chimney breast,
0:52:33 > 0:52:37so we just exposed the whole thing and got someone in to finish it off.
0:52:37 > 0:52:40I think it looks great. Really pleased with it.
0:52:40 > 0:52:44I couldn't agree more and while the fireplace was a hidden gem,
0:52:44 > 0:52:49one of the obvious original features was what remained of the stained-glass windows.
0:52:49 > 0:52:55Even though they now have new double glazing, the couple have worked hard to retain the period look.
0:52:58 > 0:53:02We had a glazier come and do rubbings on the original windows
0:53:02 > 0:53:05and get them exactly matched to the colours and style
0:53:05 > 0:53:11and we had the lead in the stained glass replaced in the double-glazed version, so it's warmer,
0:53:11 > 0:53:14but it looks as effective as the original windows did.
0:53:14 > 0:53:18The combination of period and contemporary works beautifully,
0:53:18 > 0:53:25but the restoration of the original features, as well as a high-end, modern finish doesn't come cheap.
0:53:25 > 0:53:28How did their £25,000 budget hold up?
0:53:28 > 0:53:35We spent just under 35,000 all in, including all the fees, but that does include the appliances as well,
0:53:35 > 0:53:41so I think we've got value for money in what we've spent, so we're quite pleased with it.
0:53:43 > 0:53:45It's clear where the money's been spent,
0:53:45 > 0:53:49not only on fundamentals such as fixing the roof,
0:53:49 > 0:53:54but also on the details that make this house Graham and Lauren's ideal home.
0:53:54 > 0:54:00Yes, they have gone over budget and the eight-month timescale now stands at 13 months and counting,
0:54:00 > 0:54:07but they want the place to be perfect and they are happy to stay with Graham's mum a little longer.
0:54:07 > 0:54:11Graham's mum has been an absolute star to have us for quite so long
0:54:11 > 0:54:16and I think she'll be glad to see all of our stuff out of her house, so she can have it back.
0:54:16 > 0:54:21That's something that we'll all look forward to, especially Graham's mum.
0:54:21 > 0:54:27Graham and Lauren clearly love their new home. I can't imagine they'll be selling it any time soon,
0:54:27 > 0:54:31but let's find out if this three-bed semi captures the heart
0:54:31 > 0:54:34of two property experts.
0:54:34 > 0:54:38I think it's a very nice property. It will appeal to a lot of buyers.
0:54:38 > 0:54:42The owners managed to retain the character of the property
0:54:42 > 0:54:44and yet give it a really nice feel,
0:54:44 > 0:54:47keeping it neutral, good quality fixtures and fittings.
0:54:47 > 0:54:51The property here has been refurbished to a very high spec,
0:54:51 > 0:54:53the flooring, the light fittings,
0:54:53 > 0:54:59bathroom fittings, kitchen appliances. Everything has been done to that high standard.
0:54:59 > 0:55:03Very impressive, very appealing and it will suit a range of different buyers.
0:55:03 > 0:55:07The kitchen, nice family room, keeping it open to the dining area.
0:55:07 > 0:55:11It's a place to socialise and it's a really good quality.
0:55:11 > 0:55:17And the bathroom also, a very good standard of fixtures and fittings in there as well. Really nice.
0:55:17 > 0:55:24The couple bought the house for £155,000 and have spent £35,000 doing it up,
0:55:24 > 0:55:27making a total outlay of £190,000,
0:55:27 > 0:55:32so let's find out how much it could achieve if they decided to put it up for sale.
0:55:32 > 0:55:37If I was putting the property on the market today, I'd recommend an asking price of £220,000.
0:55:37 > 0:55:43I think an average three-bedroom semi in this area, you're normally looking round about the 200,000 mark.
0:55:43 > 0:55:47I definitely think this one needs to be priced higher than that.
0:55:47 > 0:55:52It's nicer than the normal. It's got a lot of potential and you're looking about the 225 mark.
0:55:52 > 0:55:57- That's pretty good.- Yeah.- Probably a little bit more than we expected.
0:55:57 > 0:56:00- That's good to know. - It makes it worthwhile, I think.
0:56:00 > 0:56:06Obviously, we've got no plans to move, but it's nice to know that the money's been well spent.
0:56:07 > 0:56:12That top price would reap them a gratifying profit of 35,000,
0:56:12 > 0:56:14minus tax and expenses, of course.
0:56:14 > 0:56:19It's always welcome news to hear that any work done has proved fruitful,
0:56:19 > 0:56:21even if they're staying put for now,
0:56:21 > 0:56:25and they certainly seem very happy that it's almost complete.
0:56:25 > 0:56:28We're delighted with how the house has turned out
0:56:28 > 0:56:32and we're looking forward to moving in. Hopefully, that'll be very soon.
0:56:35 > 0:56:37Well, that's it for today's show.
0:56:37 > 0:56:43Have we inspired you to do the groundwork and lay the foundations for your own property portfolio?
0:56:43 > 0:56:49Or even if you prefer to watch other people do it, join us next time for more Homes Under The Hammer.
0:56:49 > 0:56:51- Goodbye for now.- Goodbye.
0:57:12 > 0:57:15Subtitles by Red Bee Media Ltd