0:00:02 > 0:00:04Welcome to Homes Under The Hammer.
0:00:04 > 0:00:07Buying at auction has become increasingly popular.
0:00:07 > 0:00:12It could be the place to bag yourself a bargain and exchange contracts quickly.
0:00:12 > 0:00:17But it can be risky, so we're here to show you how other people have got on and guide you through.
0:00:42 > 0:00:47The profits are still there to be had for the savvy property developer,
0:00:47 > 0:00:52but it's really important to keep a tight rein on the budget and not get carried away.
0:00:52 > 0:00:58It's worth sticking to the rules, keep it neutral and don't spend more than you can recoup.
0:00:58 > 0:01:01So here are the projects we're featuring today.
0:01:02 > 0:01:06'In East London, this mid-terrace may be hiding some secrets.'
0:01:06 > 0:01:11Hidden behind...there, I hope, a nice fireplace.
0:01:12 > 0:01:18'This two-bed house in Sevenoaks, Kent, makes me pine for some neutral decor.'
0:01:18 > 0:01:21Look at all that wood cladding in there!
0:01:22 > 0:01:28'And in Stoke-onTrent, this shabby, run-down bungalow may be on its last legs, but step out back...'
0:01:28 > 0:01:32And it all changes. Look at this plot of land!
0:01:32 > 0:01:36'All these properties have been sold at auction.
0:01:36 > 0:01:42- 'We'll find out who bought them and what they paid when they went under the hammer.'- Your lot. Well done.
0:01:45 > 0:01:48This is Walthamstow to the east of London,
0:01:48 > 0:01:52an area well served by transport links to the centre of the city,
0:01:52 > 0:01:55making it a handy base for commuters.
0:01:56 > 0:02:01This is Lloyd Park and this part of Walthamstow is named after it.
0:02:01 > 0:02:04It's a lovely recreational area
0:02:04 > 0:02:11and in fact, William Morris, the Victorian designer and champion of the Arts and Crafts Movement,
0:02:11 > 0:02:13had a house in here.
0:02:13 > 0:02:16The property I'm here to see is just round the corner.
0:02:16 > 0:02:21It's a lovely part of the borough to live in and is a very popular area with renters
0:02:21 > 0:02:24as it's a good blend of value and convenience,
0:02:24 > 0:02:29so it could be an ideal area if you were thinking of investing some of your money.
0:02:29 > 0:02:32So, what property delight am I about to see today?
0:02:32 > 0:02:36Well, up for auction was a three-bedroomed mid-terrace.
0:02:36 > 0:02:39The guide price was 175,000.
0:02:39 > 0:02:42The front garden could do with a bit of trimming back
0:02:42 > 0:02:47and the house itself looks like it needs a bit of tender, loving care. Let's take a look.
0:02:47 > 0:02:49# Better run through the jungle
0:02:49 > 0:02:52# Better run through the jungle... #
0:02:53 > 0:02:55So, what have we got?
0:02:55 > 0:03:00It looks like a fairly standard layout for this kind of property.
0:03:00 > 0:03:02A little entrance area here,
0:03:02 > 0:03:06stairs up to the bedrooms and then, basically, two sitting rooms,
0:03:06 > 0:03:09one at the front and one at the back.
0:03:09 > 0:03:14Now, you can see straight away it's not in the best of condition.
0:03:14 > 0:03:18However...it's all right.
0:03:18 > 0:03:22But when it comes to the state of this place, we're not out of the woods yet.
0:03:22 > 0:03:29There are signs of damp on the back wall and the kitchen has very dated units. And worse, it's pretty small.
0:03:29 > 0:03:33But there is potential here and when it comes to finding space,
0:03:33 > 0:03:38there are never problems, just solutions waiting to be found, and this one is outside.
0:03:38 > 0:03:44At the rear of the property, at the moment, this rather unsightly sort of lean-to, conservatory bit.
0:03:44 > 0:03:48You want to get rid of that, but what do you replace it with?
0:03:48 > 0:03:54Current planning regulations say that you could put a single-storey extension three metres long on here
0:03:54 > 0:03:57and that's what some neighbours have done.
0:03:57 > 0:04:01It would give you much needed extra space at the rear of the property.
0:04:01 > 0:04:04Whether you do it comes down to financials.
0:04:04 > 0:04:08If you're looking to rent it out, how much more would you get back?
0:04:08 > 0:04:14If you're looking to sell it, how much would you get back compared to how much it will cost to do it?
0:04:14 > 0:04:20But one thing which is not in dispute is the fact that the back garden is absolutely massive.
0:04:20 > 0:04:24# Jungle boogie, jungle boogie... #
0:04:24 > 0:04:30It's going to take more than a pair of secateurs and a weekend to tame this garden.
0:04:30 > 0:04:32Who knows what's lurking in there?
0:04:34 > 0:04:37But I can tell you that at the front of the house,
0:04:37 > 0:04:42that rampant shrub was hiding some lovely features,
0:04:42 > 0:04:47such as the original sash windows and this period front door.
0:04:47 > 0:04:51So, upstairs, three bedrooms and a bathroom which is good news.
0:04:51 > 0:04:57Whenever you see an old door which has got a panel that has obviously been stuck on the front like this,
0:04:57 > 0:05:03it's likely to be covering up an original door behind there and that can give real character to a house,
0:05:03 > 0:05:07so take the doors off, have them dip-stripped and beautiful.
0:05:07 > 0:05:13Again hidden behind...there, I hope, a nice fireplace.
0:05:13 > 0:05:15I can't actually take it off.
0:05:15 > 0:05:18Again original features hidden away, just waiting to be uncovered,
0:05:18 > 0:05:23and I bet, if you take up all these carpets, a nice wooden floor you could strip back to.
0:05:23 > 0:05:28It would certainly go some way to restoring a bit of character back here.
0:05:28 > 0:05:31Aside from the refurbishment needed downstairs,
0:05:31 > 0:05:36it won't surprise you that the bathroom needs a complete overhaul,
0:05:36 > 0:05:42but with its three bedrooms, two doubles and a single, plus that sizeable garden,
0:05:42 > 0:05:46this place would be perfect to attract a family buyer.
0:05:47 > 0:05:52Time to ask a local estate agent for his opinion
0:05:52 > 0:05:58on this three-bed terraced house in Walthamstow with its guide price of 175,000.
0:05:58 > 0:06:01The property is in need of full refurbishment.
0:06:01 > 0:06:06It would need full re-decoration throughout, including new carpets, new plastering.
0:06:06 > 0:06:10It would need a new gas central heating system and bathroom suite,
0:06:10 > 0:06:16and if we're going to be aimed at the family market, I would go for a lower ground extension.
0:06:16 > 0:06:19What could this house be sold on for once renovated?
0:06:19 > 0:06:24If this property was refurbished to a reasonable standard without the extension,
0:06:24 > 0:06:27I believe it would be on the market for £300,000.
0:06:27 > 0:06:33If the extension was added to the rear, I believe we could achieve £330,000.
0:06:33 > 0:06:38If you bought this as a buy-to-let, would there be a healthy demand in the area?
0:06:38 > 0:06:42Three and four-bedroom houses are very rare on the rental market
0:06:42 > 0:06:46and this would rent for £1,400 to £1,500 per calendar month.
0:06:48 > 0:06:54Well, it's a good-sized house in a popular location close to the school and the park
0:06:54 > 0:07:00and I think there's money to be made on this one. Let's see who fancied it when it went under the hammer.
0:07:04 > 0:07:07Lot 2. I've got a proxy bid on it,
0:07:07 > 0:07:10but let's see if I've got to use it or not.
0:07:10 > 0:07:13Right, I'll start. 200 with me on my proxy.
0:07:13 > 0:07:16200. 201 anywhere?
0:07:16 > 0:07:18201.
0:07:18 > 0:07:21202 with me.
0:07:21 > 0:07:22203, yeah?
0:07:22 > 0:07:25204 with me. 205?
0:07:25 > 0:07:27I'll go to 211.
0:07:27 > 0:07:29212? 212 with you.
0:07:29 > 0:07:31213 elsewhere?
0:07:31 > 0:07:33213 with you...
0:07:33 > 0:07:37'This property attracted a lot of interest at the auction.
0:07:37 > 0:07:41'We pick it up when the bidding reached 238,000.'
0:07:41 > 0:07:44238, sir.
0:07:44 > 0:07:47239. And 240.
0:07:47 > 0:07:49241?
0:07:49 > 0:07:50241.
0:07:50 > 0:07:52242?
0:07:52 > 0:07:53242?
0:07:53 > 0:07:56241, back to you, might have it.
0:07:56 > 0:07:58242?
0:07:58 > 0:08:03241, first time, second time, third and last time. Are you all done?
0:08:03 > 0:08:05BANGS GAVEL Sold, 241.
0:08:05 > 0:08:09'That successful bidder was Jonathan.
0:08:09 > 0:08:15'He lives in Essex and already has two properties in his rental portfolio,
0:08:15 > 0:08:20'but he and his girlfriend Charisse plan to sell this terraced house on.
0:08:20 > 0:08:22'I met him to find out more.'
0:08:22 > 0:08:28- Jonathan, great to meet you. Congratulations.- Thank you.- How was the auction?- Nerve-wracking.
0:08:28 > 0:08:33It was the first one I've ever been to, so I made sure I got there on time.
0:08:33 > 0:08:39Luckily, it was quite an early lot, so I got there, got a good position, so I could be seen
0:08:39 > 0:08:41and sat there sweating for a bit.
0:08:41 > 0:08:45- We got into a good bidding war and, luckily, I got it.- Yeah.
0:08:45 > 0:08:49- Tell me why you wanted to buy this place.- We saw it in the brochure.
0:08:49 > 0:08:54I've got friends in the local area. One of them is a rental agent locally as well.
0:08:54 > 0:08:58From that point of view, it looked like a good opportunity to go for
0:08:58 > 0:09:03and knowing about the Lloyd Park area, we thought it was a good investment.
0:09:03 > 0:09:09- What did your friend who's a rental agent say?- Excellent opportunity if we went down the rental route.
0:09:09 > 0:09:13He gave me some good figures, but hopefully, we'll sell it on.
0:09:13 > 0:09:17- Is this what you do?- No, I work for a dental equipment company.
0:09:17 > 0:09:21Right. What do you mean, "dental equipment"? What kind of stuff?
0:09:21 > 0:09:27We manufacture ultrasonic units and things like that for the dental surgery.
0:09:27 > 0:09:30Not like toothbrushes or anything like that!
0:09:30 > 0:09:35I cover the south of England, so this is completely different to my day job.
0:09:35 > 0:09:38- Just filling in the time? - Yeah, absolutely.
0:09:38 > 0:09:42'He must be fed up to the back teeth with puns like that,
0:09:42 > 0:09:46'but moving from selling dental equipment to buying property
0:09:46 > 0:09:49'isn't as huge a leap into the dark as it might seem.'
0:09:50 > 0:09:55A long time ago, I used to be an estate agent, when I started off working.
0:09:55 > 0:09:58Then I went to manage a rental office as well
0:09:58 > 0:10:03and I have done one project similar to this about ten or eleven years ago
0:10:03 > 0:10:05which was back up in Cambridgeshire,
0:10:05 > 0:10:10which was a smaller, little refurb that I did, so I've had a small taste of it,
0:10:10 > 0:10:14but I like it and this is something that I'd like to hopefully move into
0:10:14 > 0:10:18if everything goes right with this one and we find a suitable next one.
0:10:18 > 0:10:23'It looks like Jonathan knows the drill when it comes to property.
0:10:23 > 0:10:28'With his girlfriend Charisse, he's hoping to establish a sideline business in development.
0:10:28 > 0:10:31'As for the development of this particular place,
0:10:31 > 0:10:35'the house will have a complete refurbishment from top to bottom.
0:10:35 > 0:10:41'The walls separating the kitchen and the dining room will be knocked down to create a kitchen/diner.
0:10:41 > 0:10:43'He plans to add space internally.'
0:10:43 > 0:10:47The chimney breasts are coming out in the lounge, dining room and upstairs.
0:10:47 > 0:10:53I thought about keeping it in here and I want to keep as many original features as I can,
0:10:53 > 0:10:57but I think the modern-day buyer is looking for the space more
0:10:57 > 0:11:00and that will give you a lot more space in this room.
0:11:00 > 0:11:03That opens it up for the bedrooms upstairs as well.
0:11:03 > 0:11:08I'm always a bit unsure about chimney breast removal because it's quite...
0:11:08 > 0:11:12It's not a difficult job, but it's got lots of skips...
0:11:12 > 0:11:16It's lots of labour which probably means lots of money.
0:11:16 > 0:11:21- Have you been given an idea of what it's going to cost? - We've got an idea on our budget.
0:11:21 > 0:11:24- We work it out at around 30,000 for everything.- Right.
0:11:24 > 0:11:28A building firm have done the quotes. I'm just getting those back now.
0:11:28 > 0:11:32I don't think we'll be too far wrong with that sort of budget.
0:11:32 > 0:11:35'£30,000 sounds a fairly healthy budget,
0:11:35 > 0:11:40'although Jonathan is also considering adding an extension at the back.
0:11:40 > 0:11:44'That would increase his outlay by £15,000.
0:11:44 > 0:11:50'With a 12-week timescale, he's taking a very considered view of this renovation,
0:11:50 > 0:11:55'weighing up the costs and taking advice from the estate agents before deciding what to do.'
0:11:55 > 0:11:57What's next on the agenda?
0:11:57 > 0:12:03We'll keep our eye on the next auctions coming up, just to see if there's anything suitable in there.
0:12:03 > 0:12:06Anything in this area would be good. It's a great area.
0:12:06 > 0:12:11- Yes, see what the future brings in the auctions. - Congratulations. Good luck with it.
0:12:11 > 0:12:13Thanks very much. Thanks.
0:12:15 > 0:12:19So, will Jonathan's latest denture...sorry, venture go well
0:12:19 > 0:12:22and will it be his crowning achievement?
0:12:22 > 0:12:26Does he have the palate for it? How will it all turn out?
0:12:26 > 0:12:29- HE LAUGHS - You can find out later in the show.
0:12:34 > 0:12:41Sevenoaks in Kent is an attractive, historic dormitory town, only 13 minutes from London by train.
0:12:42 > 0:12:48That accessibility means house prices here are hot and some of the most expensive in the country
0:12:48 > 0:12:52with the average detached home coming in at over £500,000.
0:12:52 > 0:12:57However, just a short drive away is Dunton Green,
0:12:57 > 0:13:00an area that may suit lighter wallets.
0:13:00 > 0:13:08The detached house I'm here to see had a guide price of 195,000 to 205,000
0:13:08 > 0:13:14which seems much more in line with what you'd expect from a two-bedroomed home in need of work.
0:13:14 > 0:13:18The house itself though looks more Scandinavian than Kentish.
0:13:18 > 0:13:21I wonder if inside is quite so Nordic?
0:13:21 > 0:13:24Yes, more Nordic than North Kent
0:13:24 > 0:13:29and it's not just the wood cladding on the outside as the building is timber-framed too.
0:13:29 > 0:13:35I think it's charming, but not the concrete garage right outside the front door.
0:13:35 > 0:13:39Yes, a little bit flimsy is my first impression of this property.
0:13:39 > 0:13:43You know, it feels a little bit boxy.
0:13:43 > 0:13:49A-ha, the alpine theme continues! It doesn't disappoint. Look at all that wood cladding in there!
0:13:49 > 0:13:54It needs to be a bit modernised, but you have got double glazing, so that's really good.
0:13:54 > 0:13:58You have storage heaters. This house doesn't have gas central heating.
0:13:58 > 0:14:03Second reception room, great for eating, a big family space.
0:14:03 > 0:14:09A dark corridor leading to the back of the property where you've got a nice, bright, sunny kitchen,
0:14:09 > 0:14:14so it's clean, it's neat, it's tidy, but it needs a lot of work.
0:14:14 > 0:14:20But with that neat and tidy look, it's fair to say that the house appears well maintained.
0:14:20 > 0:14:22It just hasn't been updated.
0:14:22 > 0:14:28Anyone taking it on will want to rip out the cladding, slap on modern colours and re-fit the kitchen.
0:14:28 > 0:14:34Outside, there's a fantastic, long back garden, but it's also a bit shed-tastic.
0:14:34 > 0:14:37I know a man likes to have a shed, but three?!
0:14:37 > 0:14:42Back indoors, there are two bedrooms. They're a good size, but again rather dated,
0:14:42 > 0:14:46though we seem to have reached the end of the cladding.
0:14:46 > 0:14:49# I'm feeling glad all over
0:14:49 > 0:14:53# Yes, I'm glad all over
0:14:53 > 0:14:56# Baby, I'm glad all over
0:14:56 > 0:14:59# So glad you're mine... #
0:14:59 > 0:15:03Cladding all over a room like that is best suited to just saunas,
0:15:03 > 0:15:07but what's getting me steamed up is the layout.
0:15:07 > 0:15:12To sum up, you've got a wonderfully large bathroom, but only two bedrooms.
0:15:12 > 0:15:14It's not really working for me.
0:15:14 > 0:15:20That bathroom's got lovely views over the garden. I would like to use that as a bedroom.
0:15:20 > 0:15:25You'd have three wonderful bedrooms upstairs, but where's the bathroom going to go?
0:15:25 > 0:15:29You could slot it in between these two bedrooms here.
0:15:29 > 0:15:33Now, it's a good idea, but the only problem with that
0:15:33 > 0:15:38is the only bit of brickwork in the whole house is that chimney breast
0:15:38 > 0:15:41and you'd have to knock it down.
0:15:41 > 0:15:45It may seem ludicrous, but it would make this house so much more saleable.
0:15:46 > 0:15:50I know taking out the chimney breast would be complicated,
0:15:50 > 0:15:55but I really think it's the best way to improve this house, its layout and value.
0:15:55 > 0:15:59However, it's not the only complication here.
0:15:59 > 0:16:06We're not very used to timber-framed buildings here in the UK, but there are plenty of them dotted around
0:16:06 > 0:16:09and they can make very good, solid homes.
0:16:09 > 0:16:13It's when it comes to securing a mortgage, things get a bit tricky.
0:16:13 > 0:16:18Banks aren't keen on lending on anything that's not bricks and mortar
0:16:18 > 0:16:22and you can find your options are limited when it comes to finance.
0:16:22 > 0:16:28Houses of non-typical or non-standard construction can be hard to finance, but not impossible.
0:16:28 > 0:16:32"Non-typical" simply means not typical for the area
0:16:32 > 0:16:35and lenders tend to stick to building materials they know.
0:16:35 > 0:16:41However, timber-framed houses are environmentally sound and warm in winter and cool in the summer.
0:16:41 > 0:16:48There are plenty of them around in Scotland, Scandinavia and parts of the USA just for starters.
0:16:48 > 0:16:50We asked a local estate agent
0:16:50 > 0:16:54what he made of this two-bed timbered house, guided at 195
0:16:54 > 0:16:56to 205,000.
0:16:57 > 0:17:01It's unusual as a house. It's not a traditional build.
0:17:01 > 0:17:05With that it brings some attractiveness. It's got a lovely plot.
0:17:05 > 0:17:09And apart from the stigma attached to timber-framed houses within the UK,
0:17:09 > 0:17:12it's a super little house.
0:17:12 > 0:17:17Considering all the issues with the mortgages on this kind of property,
0:17:17 > 0:17:19would it be worth taking a punt and refurbishing it?
0:17:19 > 0:17:25If it was refurbished, it would probably be up to £275,000, maybe a little bit more.
0:17:25 > 0:17:28Very difficult because of its construction.
0:17:28 > 0:17:33- As a rental?- The rental value, once refurbished, would be just under a £1,000 per month.
0:17:33 > 0:17:36If you made this space into that third bedroom,
0:17:36 > 0:17:41moving the bathroom to between the two bedrooms, what could it sell for then?
0:17:41 > 0:17:46To add a third bedroom could increase the value. I think £300,000 would be the maximum.
0:17:46 > 0:17:51If you forget the fact it's made out of wood, this house is a great home.
0:17:51 > 0:17:57Tons of space in the garden, room to extend, a lovely location, scope to add value...
0:17:57 > 0:18:01It's just that timber frame will always make it a tricky sell.
0:18:01 > 0:18:04Let's see who wanted it at the auction.
0:18:07 > 0:18:10And on to Lot number 37.
0:18:10 > 0:18:12£200,000 to start me? At 200?
0:18:12 > 0:18:17Start me at 180? 180, I'm on the way. £180,000.
0:18:17 > 0:18:21- 185 I'm looking for... Sorry, I didn't hear that.- 181.- 181.
0:18:21 > 0:18:24181. And 2? 182.
0:18:24 > 0:18:28Can I say 184 perhaps, get it going a little bit? 184.
0:18:28 > 0:18:30And 6.
0:18:30 > 0:18:33And 8. 189 I've got. 190 if you like.
0:18:33 > 0:18:38190 I have. 191 with you, madam? 191...
0:18:38 > 0:18:41'Two very interested parties were battling for this lot.
0:18:41 > 0:18:45'We rejoin the auction when the bidding reached 210,000.'
0:18:45 > 0:18:50At £210,000 to the lady sitting down. 212 I'm looking for.
0:18:50 > 0:18:54It's in the room to sell it. 212 if you want? 212 I've got.
0:18:54 > 0:18:56214,000? 214?
0:18:56 > 0:19:00Is that yes? 214. And 16? 216?
0:19:00 > 0:19:06At £214,000... He said "no". At 214 then for the first time sitting down.
0:19:06 > 0:19:10214 for the second time. 214, third and final time...
0:19:10 > 0:19:13It's yours, madam, at 214,000. Well done.
0:19:13 > 0:19:16'That successful bidder was Louise.
0:19:16 > 0:19:20'She's a mother of three from nearby Beckenham in Kent.
0:19:20 > 0:19:25'Louise and her brother Ray, a builder, bought this house for 214,000.
0:19:25 > 0:19:29'They already have one property renovation under their belts.
0:19:29 > 0:19:33'I met them at their purchase to hear about the plans for this one.'
0:19:33 > 0:19:39- Louise and Ray, congratulations. It all worked out. You've got the house you wanted.- We have.
0:19:39 > 0:19:42So what was it about this house you liked so much to want to buy it?
0:19:42 > 0:19:47Well, we had looked at a couple and I just fell in love with this to start with.
0:19:47 > 0:19:50It just had a really nice feel about it,
0:19:50 > 0:19:56- then I said to my brother, "Come and have a look, see what you think," and we both agreed.- Yeah.
0:19:56 > 0:20:01So, Ray, through the eyes of a builder, what could you see here, what were the good points?
0:20:01 > 0:20:05It's unusual. It's a timber-framed house, so obviously...
0:20:05 > 0:20:11Selling it, it won't be a problem, but it's going to take more time than a normal house.
0:20:11 > 0:20:16- Let's not beat around the bush. A timber-framed house is a drawback. - Yeah.
0:20:16 > 0:20:19Have you done much research about timber-framed houses?
0:20:19 > 0:20:25I've done a bit. More and more companies are building timber houses. America's built on timber.
0:20:25 > 0:20:30I don't think it'll be a problem. I think it's in good condition.
0:20:30 > 0:20:33No rot anywhere. So I think we'll be OK.
0:20:33 > 0:20:35You're right, it is in good condition.
0:20:35 > 0:20:42My only concern is whoever wants to buy this off you guys when you sell it, they'll have to get a mortgage.
0:20:42 > 0:20:45It's the mortgage lenders. You can get mortgages.
0:20:45 > 0:20:48But it will put probably half the people off that want
0:20:48 > 0:20:52- to walk through the door.- If someone really wants it, they'll buy it.
0:20:52 > 0:20:57# You can get it if you really want
0:20:57 > 0:20:59# You can get it if you really want
0:20:59 > 0:21:03# But you must try, try and try
0:21:03 > 0:21:06# Try and try
0:21:06 > 0:21:08# You'll succeed at last... #
0:21:08 > 0:21:11'Louise and Ray plan to sell the house on,
0:21:11 > 0:21:17'although Louise does have a plan that one of her three daughters might move in.
0:21:17 > 0:21:23'Either way, though clean and tidy, it needs a thorough refurbishment to bring it up to date.'
0:21:23 > 0:21:28We're thinking about opening this all up and having a great, big kitchen-diner
0:21:28 > 0:21:32- and just keeping the front room... - As a little chill room.- Yeah.
0:21:32 > 0:21:37And putting in French doors. Yeah, I've got lots of ideas. I'm very excited.
0:21:37 > 0:21:42- What about upstairs? Big negative, it's only two bedrooms.- It is.
0:21:42 > 0:21:46You could squeeze three bedrooms in, but would it be worth it?
0:21:46 > 0:21:49- We're not going to. - We'll stick to two bedrooms.
0:21:49 > 0:21:55I don't think you can SQUEEZE another bedroom in. You've got a bedroom looking at you in the face.
0:21:55 > 0:21:59I think it's "squeeze in a bathroom" time. I think that would really work.
0:21:59 > 0:22:04Yeah, it probably would, but would it be worth the expense of going that far?
0:22:04 > 0:22:08I know in a timber-framed building it's easy to move walls...
0:22:08 > 0:22:12We have talked about it a lot over the last couple of days.
0:22:12 > 0:22:14Yeah, since we had it.
0:22:14 > 0:22:18Costings and things like that, my brother does, Ray does all that,
0:22:18 > 0:22:22and I have to go with... "I'm on a tight budget sometimes".
0:22:22 > 0:22:26It's so boring being on a tight budget!
0:22:26 > 0:22:29What is a budget?
0:22:29 > 0:22:33'What IS a budget indeed, a question often asked by developers.
0:22:33 > 0:22:40'Their budget is 18 grand, but they're not planning to do anything major in terms of reconfiguration.
0:22:40 > 0:22:45'They're going to explore sorting a gas supply and getting rid of the storage heaters.
0:22:45 > 0:22:51'They also plan to give the garage the heave-ho which should definitely improve the kerb appeal.
0:22:51 > 0:22:57'18,000 for all that should be enough, but it definitely helps when your brother's a builder.'
0:22:57 > 0:23:02He's so precise, he does this all the time and his work is excellent.
0:23:02 > 0:23:06We haven't got to get other people in. We only get people to help us.
0:23:06 > 0:23:10Friends and family to help, no other trades. I do all that myself.
0:23:10 > 0:23:16- What about stuff outside your lives? - I do a lot of running, ultra-marathons, marathons.
0:23:16 > 0:23:22- I'm training to run London to Brighton in four weeks' time. - Wow! What's an ultra-marathon?
0:23:22 > 0:23:24- More than one in one go.- Really?
0:23:24 > 0:23:30I've just completed the Jungle Marathon which was six marathons in six days in Brazil.
0:23:30 > 0:23:35- It's absolutely crazy.- So this is nothing for you?- No.- No, it's not.
0:23:35 > 0:23:39- You need to expend that energy. This is the project for you.- Yeah.
0:23:39 > 0:23:44- Good luck. Lovely to meet you. - And you too.- Thank you. - Thank you.- Cheers.
0:23:44 > 0:23:50So, Louise and Ray are planning to wow with the renovation of this wooden house
0:23:50 > 0:23:54and they will need to to get those hesitant buyers through the door.
0:23:54 > 0:24:00I like their plans, but will they make this a three-bedder and widen the market that bit further?
0:24:00 > 0:24:02You can find out later in the programme.
0:24:03 > 0:24:09'Still to come, in Penkhull, Stoke, this worn-out bungalow gives me a wobbly moment.'
0:24:09 > 0:24:12As you walk around, the floors seem to give way.
0:24:13 > 0:24:18'In Sevenoaks, Kent, builder Ray discovers the true beauty of wood.'
0:24:18 > 0:24:23If you find a bit of rot in timber, you can cut the timber out and replace it.
0:24:24 > 0:24:29'But first, in East London, did Jonathan's renovations stay within budget?'
0:24:29 > 0:24:33We spent more on the bathroom than we anticipated, more on the kitchen.
0:24:37 > 0:24:42Earlier, we were in the Lloyd Park area of Walthamstow in East London
0:24:42 > 0:24:49where we saw Jonathan buy this three-bedroomed, terraced house at auction for £241,000.
0:24:49 > 0:24:54He works for a dental equipment company, but hopes by renovating this house and selling it,
0:24:54 > 0:24:58he'll kick-start a new career in property developing.
0:24:58 > 0:25:04He also owns two properties which he currently lets out, so he's not a complete novice.
0:25:04 > 0:25:07A long time ago, I used to be an estate agent,
0:25:07 > 0:25:11then I went to manage a rental office as well
0:25:11 > 0:25:16and I have done one project similar to this about ten or eleven years ago,
0:25:16 > 0:25:19- so I've had a small taste of it. - Right.
0:25:19 > 0:25:22I like it and this is something I'd like to move into
0:25:22 > 0:25:26if everything goes right with this one and we find a suitable next one.
0:25:26 > 0:25:32Jonathan's plans for the house included removing the chimney breast upstairs and downstairs
0:25:32 > 0:25:35and knocking through the two rear ground floor rooms.
0:25:35 > 0:25:41He had a healthy £30,000 for this and an additional £15,000 for a possible back extension,
0:25:41 > 0:25:44so how has that and the 12-week timescale fared?
0:25:44 > 0:25:50When we returned three and a half months later, the large shrub had been cut down to size,
0:25:50 > 0:25:53showing off a bright new face to the house,
0:25:53 > 0:25:56but it's the inside that counts.
0:25:57 > 0:25:59And this is much better.
0:25:59 > 0:26:03The front room has had a wonderful-looking facelift
0:26:03 > 0:26:07and I'm happy to see that the chimney breast is still intact
0:26:07 > 0:26:10with a beautiful, original fireplace exposed.
0:26:10 > 0:26:16The warm tones of the new flooring flow into a welcoming hallway
0:26:16 > 0:26:18while at the back...
0:26:18 > 0:26:20Jonathan has had the wall taken down
0:26:20 > 0:26:24to create a new, spacious kitchen-dining area.
0:26:27 > 0:26:33What we did in the kitchen... The original kitchen had a wall up here, so that was the kitchen in there.
0:26:33 > 0:26:36We've opened that up into the dining room.
0:26:36 > 0:26:41We've bricked up the doorway from the hallway into the kitchen as well.
0:26:41 > 0:26:45There was a big window here, a large window here,
0:26:45 > 0:26:50which we've opened up at the bottom and put in double doors, so we've got good access outside.
0:26:50 > 0:26:53We moved this window from its position to the left.
0:26:53 > 0:26:57We moved it here to make way for the boiler in there and bricked up that.
0:26:57 > 0:27:03We installed a brand-new kitchen with the oven and hob and nice under-cupboard lighting.
0:27:03 > 0:27:06We've kept a neutral tile throughout the kitchen and dining room
0:27:06 > 0:27:11and we've put new doors in here, as we have done throughout as well.
0:27:11 > 0:27:17Removing that downstairs chimney breast has also led to the removal of the one in the bedroom above,
0:27:17 > 0:27:20but luckily, the front bedroom has retained its stack
0:27:20 > 0:27:25and again with the bonus of a beautifully restored, original fireplace.
0:27:25 > 0:27:30All the bedrooms have been carpeted and refurbished to a good standard,
0:27:30 > 0:27:34but it's the bathroom that really takes pride of place up here.
0:27:38 > 0:27:42Originally, the bathroom was the other way around,
0:27:42 > 0:27:49so the bath was down this wall here, the toilet under the window and the sink was on the wall over there.
0:27:49 > 0:27:55We took out a small chimney stack in the corner of the room to allow us to get this slightly larger bath in.
0:27:55 > 0:27:59We put in a new shower, new toilet and basin and a heated towel rail.
0:27:59 > 0:28:03We fitted nice, grey tiling which we feel gives it a high-end look.
0:28:03 > 0:28:06We also finished that along on the floor
0:28:06 > 0:28:09and on the panel of the bath as well.
0:28:09 > 0:28:14The bathroom has definitely come out better than we thought, so we're very, very happy.
0:28:14 > 0:28:18There's a pleasing blend of old and new here
0:28:18 > 0:28:22and I'm glad that Jonathan decided to keep the original fireplaces,
0:28:22 > 0:28:26but the desire to maintain character didn't stop with the interiors.
0:28:26 > 0:28:30Once we took all the carpets up, we found there was original floorboards.
0:28:30 > 0:28:33Obviously, we uncovered the fireplaces as well.
0:28:33 > 0:28:40On that basis, we decided to keep the original sash windows and the original front door.
0:28:40 > 0:28:45It certainly gives the house some charm from the front,
0:28:45 > 0:28:51however, unfortunately the original floorboards were too damaged, hence new flooring throughout,
0:28:51 > 0:28:55but it's not just the house that Jonathan revived.
0:28:55 > 0:28:59The garden has been given a new lease of life by tidying up the shrubs and laying new turf.
0:28:59 > 0:29:06The lean-to was wisely consigned to the tip to be replaced not by an extension, but a tiled patio.
0:29:06 > 0:29:13We considered putting the extension on. It probably wasn't worth us doing it from a monetary point of view.
0:29:13 > 0:29:18And we looked at potentially extending into the loft space,
0:29:18 > 0:29:25but again we decided it wasn't worth us doing it. We feel leaving it like this gives a buyer a chance
0:29:25 > 0:29:28to put their own stamp on it.
0:29:28 > 0:29:34There were no major problems during the renovation, which Jonathan left to a local building firm.
0:29:34 > 0:29:37They carried out a full refurbishment.
0:29:37 > 0:29:43It was done within the 12-week schedule, but was it done within Jonathan's £30,000 budget?
0:29:43 > 0:29:49We spent more on the bathroom than we anticipated, and the kitchen.
0:29:49 > 0:29:55We probably went to about £35,000. We're waiting for a couple of bills, but we think that's it.
0:29:55 > 0:30:00Add that to Jonathan's original purchase price of £241,000
0:30:00 > 0:30:02and his total outlay is £276,000.
0:30:02 > 0:30:05So was it money well spent?
0:30:08 > 0:30:15Time to ask two local estate agents what they think of Jonathan's entry in the Walthamstow property market.
0:30:15 > 0:30:19First impressions are excellent.
0:30:19 > 0:30:23It's been decorated very tastefully with a lot of thought.
0:30:23 > 0:30:28You've got lovely wood flooring in keeping with the age of the property.
0:30:28 > 0:30:32It makes you think, "Hey, let's look at the rest of it."
0:30:32 > 0:30:37The property has been very nicely renovated. It's a compact property,
0:30:37 > 0:30:44but offers spacious accommodation and is finished to a good standard with nice retained features.
0:30:44 > 0:30:52Jonathan plans to sell this one, so bearing in mind his £276,000 outlay, will he turn a profit?
0:30:52 > 0:30:57If I had to put this on the market to sell, I'd expect it to achieve around £300,000.
0:30:57 > 0:31:02We would expect it to achieve between £330,000 and £340,000.
0:31:02 > 0:31:08A big difference between the two. We are going to market it at the higher end of those valuations.
0:31:08 > 0:31:13If Jonathan were to get the highest figure of 340 grand,
0:31:13 > 0:31:19that would give him a profit of around £64,000 minus tax and expenses.
0:31:19 > 0:31:26But could he be tempted by a possible rental return of £1,400-£1,500 per calendar month,
0:31:26 > 0:31:30meaning an annual yield of around 6%?
0:31:30 > 0:31:35Selling's our first option, but that's good to know.
0:31:37 > 0:31:41This renovation has gone well for Jonathan. No problems or delays
0:31:41 > 0:31:45and a potentially good profit when he sells the property on.
0:31:45 > 0:31:51So after this success will he give his dental career the brush off?
0:31:51 > 0:31:56Hopefully, one day, yeah. It would be nice to give up the day job,
0:31:56 > 0:31:59but we have to see what happens in the future.
0:32:05 > 0:32:13I'm in Stoke on Trent and the area of Penkhull. It's a conservation area and became a Royal Manor
0:32:13 > 0:32:18under William the Conqueror. I hope the property wins me over as well.
0:32:18 > 0:32:23Well, Penkhull is still considered a highly desirable area
0:32:23 > 0:32:29with lots of large Victorian and Edwardian properties and people making the most
0:32:29 > 0:32:34of the really good transport links. The property I'm here to see could attract all sorts of buyers.
0:32:34 > 0:32:39Not the most attractive building. It's this bungalow, guide price £125,000.
0:32:39 > 0:32:41Let's explore.
0:32:41 > 0:32:46'From the road, the bungalow may look imposing and grand,
0:32:46 > 0:32:49'but get up close and there are signs its best days are behind it.
0:32:49 > 0:32:53'I just hope the interior tells a different story.'
0:32:53 > 0:32:59It really is the oddest design. Not the prettiest of houses, you have to say.
0:32:59 > 0:33:04For instance, this is a massive porch on the front.
0:33:04 > 0:33:09I'm sure it gets lots of sunshine, but you're overlooking the road.
0:33:09 > 0:33:15Into the main body of the bungalow and it's almost like it's a small bungalow that's got wet
0:33:15 > 0:33:21and expanded dramatically. Everything is disproportionately large. Look at this entrance area!
0:33:21 > 0:33:26It's absolutely huge! And then off it you've got the rooms.
0:33:26 > 0:33:30They all look in a fairly poor state, so take your pick.
0:33:30 > 0:33:33Let's go that way.
0:33:33 > 0:33:39It's interesting. It's almost like someone's had a go at trying to renovate it.
0:33:39 > 0:33:45The electrics have been replaced in part, but it is in a dreadful state.
0:33:45 > 0:33:48As you walk around, the floors seem to give way
0:33:48 > 0:33:53and some floorboards have been taken. It's a suspended floor.
0:33:53 > 0:34:00The issue with that, well, the good news is that it's a long way for the damp to get up,
0:34:00 > 0:34:06but the bad news is if there is any damp, who knows what's happened to the joists?
0:34:06 > 0:34:11And I don't normally say this, but it's tending towards
0:34:11 > 0:34:15the...knock it down and start again camp.
0:34:17 > 0:34:22There are two front bedrooms and a back sitting room,
0:34:22 > 0:34:27but given its shabby, decaying state, demolishing the whole lot might be the best thing for it.
0:34:31 > 0:34:37Thankfully, you've got the semblance of a bathroom, but you can't say the same for the kitchen.
0:34:37 > 0:34:43This is where the kitchen was. Apart from one large cupboard, there is very little.
0:34:43 > 0:34:47Boiler, clearly that needs to be thrown away. It's a start again job.
0:34:47 > 0:34:53'Getting a mortgage for a property without a working kitchen or bathroom can be tricky.
0:34:53 > 0:34:58'There are specialist companies who will lend on development projects but you'd have to do some research.'
0:34:58 > 0:35:05Now you might think it's all looking a bit dismal in terms of this as a potential purchase.
0:35:05 > 0:35:09However, come to the rear of the property and it all changes.
0:35:09 > 0:35:12Look at this plot of land.
0:35:12 > 0:35:16A big garden? Well, it's much more than that.
0:35:16 > 0:35:20The potential here is huge. Firstly, you've got an access road.
0:35:20 > 0:35:27That means there's potential for bringing cars into another property down at the bottom, perhaps.
0:35:27 > 0:35:32You've also got, surrounding this property, lots of new builds.
0:35:32 > 0:35:37So the planners are probably going to look fairly favourably on the idea of building
0:35:37 > 0:35:41one, two, three - who knows? - properties here.
0:35:41 > 0:35:47So do we care about the state of that bungalow any more? No, we don't!
0:35:47 > 0:35:52The options here are a) total refurbishment, b) demolish and build the house of your dreams
0:35:52 > 0:35:57on a fantastic plot or c) build more than one house.
0:35:57 > 0:36:03What does a local estate agent think of this bungalow, guided at 125,000?
0:36:03 > 0:36:07First impressions are that it is in a run-down, derelict state.
0:36:07 > 0:36:13Generally would be appealing to a professional developer,
0:36:13 > 0:36:15due to the amount of work needed.
0:36:17 > 0:36:24Although you could actually refurbish this property, we would recommend to demolish and rebuild
0:36:24 > 0:36:26a detached executive home.
0:36:26 > 0:36:30But how would the returns look after developing the property?
0:36:30 > 0:36:37If this bungalow was totally renovated using the existing footprint, what's the resale value?
0:36:37 > 0:36:42We would be looking to achieve in the region of £220,000.
0:36:44 > 0:36:50And that second option, if the bungalow was demolished and a new 4-5 bedroom house
0:36:50 > 0:36:53put in its place?
0:36:53 > 0:36:57Figures could range anywhere between £300,000
0:36:57 > 0:37:00and £450,000,
0:37:00 > 0:37:04obviously depending on the planning permissions gained and the finish.
0:37:04 > 0:37:12There's certainly lots of options with this one and one of them should be to seriously consider
0:37:12 > 0:37:16knocking it down. Money to be made? All depends on that planning issue.
0:37:16 > 0:37:21Let's see who fancied a challenge when it went under the hammer.
0:37:24 > 0:37:28Lot number 32. 110, then. Can we start it at 110?
0:37:28 > 0:37:34110 bid, thank you. At £110,000.
0:37:34 > 0:37:37115, can I say now? 115.
0:37:37 > 0:37:39At 120? 120.
0:37:39 > 0:37:41125?
0:37:41 > 0:37:43122. At 122.
0:37:43 > 0:37:48To you, sir. 124. 126. 128.
0:37:48 > 0:37:53130. Right on the back wall. At 130.
0:37:53 > 0:37:56New bidder. 131.
0:37:56 > 0:37:59132. 133.
0:37:59 > 0:38:01134.
0:38:01 > 0:38:02135?
0:38:02 > 0:38:09Shaking his head. 134,000 on the back row standing. 134 for the first time.
0:38:09 > 0:38:12134 for the second time.
0:38:12 > 0:38:15134 for the third and last time. You've bought it, sir.
0:38:15 > 0:38:21- Well done.- The successful bidders were hidden from our cameras at the back,
0:38:21 > 0:38:28but we caught up with them at the bungalow. They're brothers Tom, on the left, and Ben.
0:38:28 > 0:38:32They live locally and this purchase of £134,000
0:38:32 > 0:38:37is their first development project. And what a large one to take on.
0:38:38 > 0:38:44- Great to meet you both. Congratulations. Why did you want to buy this?- Big place, good area.
0:38:44 > 0:38:47And we just really liked it.
0:38:47 > 0:38:50What prompted this sort of purchase?
0:38:50 > 0:38:57Been looking for somewhere for a while, didn't want the usual find a place, renovate, rent or sell it.
0:38:57 > 0:39:02I wanted something that has land. A bigger project, really.
0:39:02 > 0:39:08'Tom's a plumber and Ben's just returned from working abroad as a ski guide.
0:39:08 > 0:39:15'They're working together as a way of getting closer as it's not always been brotherly love.'
0:39:15 > 0:39:20My dad's involved. He's a peacemaker, really. He's trying to keep it all together.
0:39:20 > 0:39:24He wants us to have a future, so we're doing this.
0:39:24 > 0:39:31- Growing up, you two scrapped a bit? - You could say that.- A lot?- Every day. But we'll put that behind us.
0:39:31 > 0:39:33Move on.
0:39:35 > 0:39:39'Well, teamwork will be required to get this off the ground.
0:39:39 > 0:39:44'The brothers and their dad have been looking for the right property for several months
0:39:44 > 0:39:50'and while their father runs his own pottery business, he's always had a hand in developing
0:39:50 > 0:39:56'so has experience to share.' What was it about this place that you thought "Yes"?
0:39:56 > 0:40:00I just think the size of the plot. It's a very good plot.
0:40:00 > 0:40:03The area's very nice.
0:40:03 > 0:40:06Good links with schools and roads.
0:40:06 > 0:40:08What are you going to do?
0:40:08 > 0:40:15If we could get planning, we'd like to knock this down, have a five-bedroom detached house.
0:40:15 > 0:40:22We've spoken informally with the local planner who assures us if we can get access at the bottom,
0:40:22 > 0:40:26- he would grant us maybe a bungalow down there.- Oh, wow.
0:40:26 > 0:40:32Or we could build four townhouses at the front of the property, have the back as parking.
0:40:32 > 0:40:38Plenty of options. We may just renovate it as is. One of us would live here, if it didn't work out.
0:40:38 > 0:40:42'Their budget will depend on what they finally decide to do.
0:40:42 > 0:40:46'They estimate that renovating the bungalow will cost £40,000
0:40:46 > 0:40:52'while a demolition and new build would set them back around £140,000-£150,000.
0:40:52 > 0:40:58'Of course, the timescale would depend on which course of action they take,
0:40:58 > 0:41:03'but getting this build done might be the easiest aspect.'
0:41:03 > 0:41:09I'm interested in this working together. What do you think the points of contention will be?
0:41:09 > 0:41:13Just decisions on what to do with it, what to build
0:41:13 > 0:41:15and where to build.
0:41:15 > 0:41:19- That's it, really.- Time. I like everything done today.
0:41:19 > 0:41:23He's more tomorrow, if you don't mind me saying.
0:41:23 > 0:41:28So great. And once you've done this, is this a bit of a test case for you working together?
0:41:28 > 0:41:34- Yeah.- I think so. - We're looking for others as well. - Yeah, at the moment.
0:41:34 > 0:41:39- If it works out, we can do another one.- Yeah.
0:41:39 > 0:41:44- Congratulations. Good luck. We look forward to seeing what you do.- Cheers.
0:41:46 > 0:41:50Well, so many options and possibilities for this one,
0:41:50 > 0:41:54but it all comes down to that planning permission.
0:41:54 > 0:41:58Will the planners let Tom and Ben do what they'd ideally like to
0:41:58 > 0:42:05and will they complete the project without falling out? You can find out later in the show.
0:42:08 > 0:42:14So did it all go swimmingly? Did our buyers go in with their eyes wide open or tight shut?
0:42:14 > 0:42:17There's no escape now. We're coming back, ready or not.
0:42:17 > 0:42:24Back now to Sevenoaks in Kent where we saw this two-bedroom timber frame house
0:42:24 > 0:42:26sell at auction for £214,000.
0:42:27 > 0:42:32Louise is a mother of three and bought it with her brother, Ray.
0:42:32 > 0:42:38He's a builder, which is always handy when you're developing. He better watch for splinters!
0:42:38 > 0:42:45I was worried that its present layout might make it too difficult to sell on.
0:42:45 > 0:42:49- What about upstairs? Big negative. It's only two bedrooms.- It is.
0:42:49 > 0:42:56- I think you could squeeze three in, but would it be worth it?- No. - We'll stick to two bedrooms.
0:42:56 > 0:43:03'I really thought a third bedroom would give this house a fighting chance.
0:43:03 > 0:43:09'However, Ray thought it wouldn't be a problem because timber frame houses are the norm in the USA.
0:43:09 > 0:43:14'So the pair allocated 18 grand and four months to do the work.
0:43:14 > 0:43:18'Eight months later and it seems Ray has followed that American dream
0:43:18 > 0:43:23'by creating his own little White House.'
0:43:23 > 0:43:28# Turn a whiter shade of pale... #
0:43:29 > 0:43:35Straight away it's more appealing now that they've got rid of the garage at the front,
0:43:35 > 0:43:39so let's take a look inside. The first big change is downstairs
0:43:39 > 0:43:45where one reception room has been opened up into the kitchen, creating a very appealing living/dining room.
0:43:45 > 0:43:50A complete change. Completely opened the kitchen and living room
0:43:50 > 0:43:55into a big kitchen/diner with bi-fold doors opening it to the massive patio.
0:43:55 > 0:43:58It's completely transformed.
0:43:58 > 0:44:02The kitchen is a lovely family room. I love the bi-folding doors.
0:44:02 > 0:44:07When we do get a bit of sunshine, it'll be lovely folding them back
0:44:07 > 0:44:12and enjoying the kitchen and going outside to the garden.
0:44:12 > 0:44:18# Turn a white shade of pale... #
0:44:18 > 0:44:24It's a high spec kitchen, too, with granite worktops, stone flooring
0:44:24 > 0:44:28and stylish gloss units. The front room layout remains the same,
0:44:28 > 0:44:31but now has a lovely wood-burning fire.
0:44:31 > 0:44:33Upstairs is where it gets interesting.
0:44:33 > 0:44:39I thought a third bedroom was crucial, but they didn't want to go there.
0:44:39 > 0:44:42So did they change their minds? Yes, they did.
0:44:42 > 0:44:49And they came up with a very clever idea which meant they didn't have to knock down that chimney breast.
0:44:49 > 0:44:52When we bought the property,
0:44:52 > 0:44:57there was a wall here and here and this made the second bedroom.
0:44:57 > 0:45:01This was the hallway down into the bathroom at the back of the house,
0:45:01 > 0:45:06which we've now brought forward and taken a bit of the second bedroom.
0:45:06 > 0:45:11The bathroom is now the third bedroom, so now it's three bedrooms.
0:45:11 > 0:45:16Lucy said change it to a three bedroom. We listened in the end.
0:45:16 > 0:45:20# And that was good advice Good advice
0:45:20 > 0:45:24# Good advice costs nothing and it's worth the price! #
0:45:24 > 0:45:31Well, I'm glad they took my advice and hats off to them for that very clever solution.
0:45:31 > 0:45:38We had some agents round and everybody said that's going to help sell it,
0:45:38 > 0:45:40so we decided to do it.
0:45:40 > 0:45:47A three-bedroom house is always going to be more appealing and that new bathroom is very stylish.
0:45:47 > 0:45:54The finished result will appeal to any buyer, but did the timber frame cause any problems
0:45:54 > 0:45:57when it came to the renovation?
0:45:57 > 0:46:01I've not done work on one before, but it was quite simple.
0:46:01 > 0:46:05If you find a bit of rot, you just cut the timber out and replace it.
0:46:05 > 0:46:10The only major problem was taking walls down. We had to put steel in,
0:46:10 > 0:46:14which I found a bit odd, but that's what building regs required.
0:46:14 > 0:46:20The schedule has only gone over by a month, which included delays in getting the gas supply in
0:46:20 > 0:46:25and some holidays, not to mention some marathon running.
0:46:25 > 0:46:30Ray did most of the work himself, with his partner and his sister.
0:46:30 > 0:46:34What about that budget they'd set at £18,000?
0:46:34 > 0:46:40The budget was slightly over as well because of the high-end kitchen and changing it to three-bedroom,
0:46:40 > 0:46:46plus the natural stone on the patio. We were a tad under 25 when we last added it up.
0:46:46 > 0:46:50We've got a couple of little bills to come in, but it'll be about 26.
0:46:50 > 0:46:57That's about £8,000 over, but they've put some passion in here and done it to a high standard.
0:46:57 > 0:47:04And they didn't just improve inside. Remember that shedtastic garden with not one, but three sheds?
0:47:04 > 0:47:09The garden was hard work, but I think we've done a good job.
0:47:09 > 0:47:12The patio looks amazing
0:47:12 > 0:47:16and anybody else coming in can make it more their own.
0:47:16 > 0:47:22But, yes, it was very hard work to get it looking like it does now.
0:47:22 > 0:47:26Hard work indeed, but let's find out how much value they've added
0:47:26 > 0:47:29to their investment of £240,000.
0:47:29 > 0:47:33What do two local property experts reckon?
0:47:33 > 0:47:39The kitchen/dining area is a great space, the heart of the kitchen, and it's a lovely job.
0:47:39 > 0:47:43Adding a third bedroom was a very good use of space and will help them achieve a higher rental.
0:47:43 > 0:47:51It's very impressive. They've done a tremendous job. It's a complete transformation.
0:47:51 > 0:47:57I think the property will appeal to quite a wide audience. It's probably out of the first-time buyer market,
0:47:57 > 0:48:02but certainly a young family and possibly an older couple looking to downsize
0:48:02 > 0:48:08because it's got all the right ingredients and is in good condition.
0:48:08 > 0:48:13They bought the place for £214,000 and spent £26,000 on the work,
0:48:13 > 0:48:17making a total outlay of £240,000.
0:48:17 > 0:48:23They definitely want to sell it on, so what could they expect for that?
0:48:23 > 0:48:26I'd recommend a marketing price of £325,000.
0:48:26 > 0:48:29I'd expect it to achieve around £300,000.
0:48:29 > 0:48:35I think we were expecting around the 300 figure. If we can sell it at that, we'd be happy. 325 is good.
0:48:35 > 0:48:39- Very good. - Yeah, we'd be very happy with that.
0:48:39 > 0:48:46And no wonder. There's a fabulous profit of £85,000, minus the usual tax and expenses,
0:48:46 > 0:48:50if it sells for that top price of £325,000.
0:48:50 > 0:48:54And with a possible rental income of up to £1,200 per calendar month,
0:48:54 > 0:49:00giving the pair an annual yield of around 6%, I reckon this brother and sister team
0:49:00 > 0:49:06- make a solid business partnership. Will they work together again soon? - Definitely.- Yeah.
0:49:06 > 0:49:13- This is our second one now and everything's going fine, so we'll do another.- He does as he's told.
0:49:13 > 0:49:16- No, that's not true.- Yeah?
0:49:23 > 0:49:29We now return to the Penkhull area of Stoke on Trent where earlier we saw this rundown, shabby bungalow
0:49:29 > 0:49:33that had little going for it in its present state.
0:49:34 > 0:49:41But set on a huge plot of land, the property still attracted the interest of Tom on the left
0:49:41 > 0:49:45and his brother Ben, along with their father Douglas,
0:49:45 > 0:49:47who paid £134,000 for it.
0:49:47 > 0:49:53Their plan was either to renovate the bungalow or knock it down for a larger house,
0:49:53 > 0:49:59plus a possible bungalow at the bottom of the garden, a venture needing teamwork,
0:49:59 > 0:50:06- which might be in short supply. - My dad's involved as a peacemaker, really, trying to keep it together.
0:50:06 > 0:50:09He wants us to have a future, so we're doing this.
0:50:09 > 0:50:14- You two used to scrap a bit? - You could say that.- Like a lot?
0:50:14 > 0:50:17Every day! We'll put that behind us.
0:50:17 > 0:50:22'The lads couldn't have picked a tougher first project for their teambuilding skills.
0:50:22 > 0:50:29'They'd set aside £40,000 to renovate the bungalow or £150,000 for a new four-bedroom house.
0:50:32 > 0:50:37'When we returned 11 months later, the bungalow was still standing.
0:50:37 > 0:50:43'There's a new roof with the chimney stacks removed and the front garden looks like it's been landscaped.
0:50:43 > 0:50:50'However, the exterior still looks like work in progress. Let's hope there's better news on the interior.
0:50:51 > 0:50:56'Ah, that's more like it. The porch has been renovated,
0:50:56 > 0:51:00'while inside, gone is the sense of rundown decay.
0:51:00 > 0:51:05'Instead, the hallway and two front reception rooms are replastered and redecorated,
0:51:05 > 0:51:09'all lighter, airier and with a greater sense of space,
0:51:09 > 0:51:13'despite the windows onto the porch being bricked up for more privacy.
0:51:13 > 0:51:19'At the back, the lounge has had the same treatment with new patio doors added,
0:51:19 > 0:51:23'while the chimney breasts have been removed to add more room.
0:51:23 > 0:51:27'Down the hall and the bathroom is a more inviting place
0:51:27 > 0:51:33'to enjoy a relaxing soak, while at the back that room with no evidence of being a kitchen
0:51:33 > 0:51:38'now has new units and a cooker installed.
0:51:40 > 0:51:44'So far, it looks like Tom and Ben have done a grand job,
0:51:44 > 0:51:48'but what happened to their plans for the new build?'
0:51:48 > 0:51:53We decided not to flatten it, not to extend for the time being, just to do a full renovation.
0:51:53 > 0:51:59As you can see, everything's been re-done - rewired, new heating, courtesy of Tom,
0:51:59 > 0:52:02and now we're moving to the outside.
0:52:02 > 0:52:10The lads have done a great job of renovating here. Tom put in most of the labour, installing the heating,
0:52:10 > 0:52:14with friends in the building trade doing the more skilled jobs.
0:52:14 > 0:52:18And Tom managed it all while juggling a full-time job.
0:52:18 > 0:52:22It's very difficult trying to juggle work and trying to fit this in.
0:52:22 > 0:52:28That's been the main issue. When you think you've got time to do it, something will crop up
0:52:28 > 0:52:31and you get put behind schedule.
0:52:31 > 0:52:37Ben helped to project manage it, but with a new job making demands on his time,
0:52:37 > 0:52:42he was only able to get his hands dirty in the evenings and weekends.
0:52:42 > 0:52:48Their dad, Douglas, helped to get the front garden into shape, but recent developments have put
0:52:48 > 0:52:51developing that huge rear garden on hold.
0:52:51 > 0:52:56We put in for planning permission and got it passed for a detached house.
0:52:56 > 0:53:03So we'll see where it goes from there, whether we sell it with the permission or build on it.
0:53:03 > 0:53:09It's a decision we'll have to make, the three of us. And then we'll see from there.
0:53:09 > 0:53:15Although they have obtained planning permission to build a detached property,
0:53:15 > 0:53:21the brothers discovered a clause in the deeds preventing more than one house being built on the plot.
0:53:21 > 0:53:27They are trying to overturn that, but just because you have planning permission
0:53:27 > 0:53:33doesn't mean it's all plain sailing. As for the bungalow, the lads are undecided whether to sell on,
0:53:33 > 0:53:39rent out or move in themselves. Whatever, it seems they've landed on their feet with this,
0:53:39 > 0:53:44their first-ever joint venture. So was it all harmony?
0:53:44 > 0:53:49The best bit about working with Tom and my dad is that it's brought us closer together.
0:53:49 > 0:53:56We see much more of each other, which is a good thing really, although we've had odd disagreements.
0:53:56 > 0:54:01But it's been great to spend time together and crack on with it.
0:54:01 > 0:54:07It seems working on this project together may have extinguished their fiery relationship,
0:54:07 > 0:54:14but with the bungalow completely renovated, did the team get burned on their £40,000 budget?
0:54:14 > 0:54:20To do the inside of the property so far, as you see it now, is £28,000.
0:54:22 > 0:54:29Add that to their purchase price of £134,000 and the team have so far spent £162,000.
0:54:29 > 0:54:35Time to find out what two local estate agents make of the renovation and their plans for the land.
0:54:36 > 0:54:42They've really made the most of the bungalow, taking advantage of the raised plot they had,
0:54:42 > 0:54:48finishing it to this modern standard, particularly the bathroom and kitchen. It makes the most of it.
0:54:48 > 0:54:52I'm very impressed with what they've done to the property internally.
0:54:52 > 0:54:56It's just ready and waiting for a family.
0:54:56 > 0:55:03Bearing in mind their £162,000 outlay, what sort of profit could they make if they sold it on?
0:55:03 > 0:55:10If I was to place this bungalow on the market as a single dwelling, with the entire garden intact,
0:55:10 > 0:55:15I would confidently place it on the market at £195,000.
0:55:15 > 0:55:20The bungalow and the plot as a whole we'd value in the region of £200,000.
0:55:20 > 0:55:26- Quite surprised at that, really. It's quite good. - Yeah, I think that's reasonable.
0:55:27 > 0:55:32That would give the team a pre-tax profit of £33,000-£38,000.
0:55:32 > 0:55:37Then there's a possible rental income of £650 per calendar month,
0:55:37 > 0:55:41giving the lads an annual yield of just under 5%.
0:55:41 > 0:55:45But the real potential here lies with developing that huge garden.
0:55:45 > 0:55:50The estate agents reckon the sale of the land with plans could make up to £75,000,
0:55:50 > 0:55:54but what sort of profit is there in the new build?
0:55:54 > 0:56:00Building a four-bed detached family home on the sub-divided plot would fetch in the region of £250,000.
0:56:00 > 0:56:04I would place that on the market for £250,000.
0:56:04 > 0:56:08We think we could build the house for 140, 150,
0:56:08 > 0:56:11so it would be a great profit.
0:56:11 > 0:56:18It's just, perhaps, the stress and finding the money to complete it.
0:56:18 > 0:56:23Of course, that all depends on them being able to change that restrictive clause in the deeds.
0:56:23 > 0:56:31If they do, there's real potential here. Ben, Tom and their father are weighing it up carefully,
0:56:31 > 0:56:36but one thing that's in no doubt is that this joint venture is here to stay.
0:56:37 > 0:56:45Yeah, we'll definitely look for another one now. I enjoy finding properties, looking at properties.
0:56:45 > 0:56:50And knowing what I know now, I think the next one will be much easier.
0:56:53 > 0:57:00- That's all we have time for on today's programme, but there's plenty more. Goodbye.- Goodbye.
0:57:20 > 0:57:23Subtitles by Red Bee Media Ltd