0:00:02 > 0:00:05- Hello.- Lucy and I find property completely absorbing.
0:00:05 > 0:00:09To do well, you've got to make sure that you buy at the right price.
0:00:09 > 0:00:15And one way that you could do that perhaps is to buy your next home under the hammer.
0:00:40 > 0:00:46You need to do your homework if you buy at auction and if you do it well, you could nab a real bargain.
0:00:46 > 0:00:50I wonder if any of the properties we're featuring will be great deals?
0:00:50 > 0:00:53Here's what we're featuring on today's show.
0:00:54 > 0:00:59'In Lydd-on-Sea in Kent, I find a large house where appearances are deceptive.'
0:00:59 > 0:01:03Hold on. Two bedrooms? That can't be right.
0:01:03 > 0:01:08'In West London, I try to get my head round the capital's property prices.'
0:01:08 > 0:01:13Believe it or not, a property on this street sold for three million pounds!
0:01:13 > 0:01:18'Finally, to Stoke-on-Trent where things are a little different.'
0:01:18 > 0:01:24Let me just tell you the guide price first - £25,000. Yeah, 25.
0:01:24 > 0:01:28'All these properties have been sold at auction.
0:01:28 > 0:01:34- 'We'll find out who bought them and what they paid when they went under the hammer.'- Your lot. Well done.
0:01:43 > 0:01:46This is Lydd-on-Sea on the south Kent coast.
0:01:46 > 0:01:50Now, these days, it's just a Mecca for holidaymakers,
0:01:50 > 0:01:55but go back a few hundred years and it was a pretty fair bet that if you lived in these parts,
0:01:55 > 0:02:01you were involved in the local fishing industry or the smuggling that was rife in the area.
0:02:01 > 0:02:04Lydd's image is somewhat cleaner these days,
0:02:04 > 0:02:09but the question is, did the local auction house smuggle in a bargain for me to uncover?
0:02:09 > 0:02:12Let's find out.
0:02:12 > 0:02:16Built post-war for holidaymakers from nearby towns,
0:02:16 > 0:02:20Lydd-on-Sea sits on a vast expanse of pebbly beach overlooking the water.
0:02:20 > 0:02:25With the shadow of Dungeness power station looming in the background,
0:02:25 > 0:02:29on a sunny day like today, it seems almost otherworldly.
0:02:30 > 0:02:34Lydd-on-Sea is not really a town or a village with a centre as such.
0:02:34 > 0:02:39It's more a development lined up facing its best asset - the sea views.
0:02:39 > 0:02:44And the property I'm here to see takes full advantage of the outlook.
0:02:44 > 0:02:51It's this two-bedroomed house. It had a guide price of 135,000 to 145,000.
0:02:51 > 0:02:55Hold on. Two bedrooms? That can't be right.
0:02:55 > 0:02:59# You can't judge a book by looking at the cover... #
0:02:59 > 0:03:02Either it's an honest mistake in the catalogue
0:03:02 > 0:03:06or they must be two of the biggest bedrooms I'll ever see in my life
0:03:06 > 0:03:11because from the outside at least, this looks like a large house, so what's going on?
0:03:11 > 0:03:13Time to step inside.
0:03:13 > 0:03:17- RINGS BELL - Anybody home? I just had to do that.
0:03:17 > 0:03:20What a fabulous bell and look at this front door!
0:03:20 > 0:03:25You've got a big archway as soon as you walk in and a huge reception room.
0:03:25 > 0:03:28Wow, this is a mighty old space!
0:03:28 > 0:03:35You've got double doors leading out to a wasted bit of conservatory. I'm not quite sure that works.
0:03:35 > 0:03:40You've got a fireplace here. Not to my taste, but you could change that.
0:03:40 > 0:03:46Patio door leading out to a nice bit of hard standing outside, so a bit of outside space already,
0:03:46 > 0:03:51then we're through to a little hallway with a downstairs loo and a shower room.
0:03:51 > 0:03:56Fantastic bonus. And I'm not quite sure, really, what this is.
0:03:56 > 0:04:00You've got a fireplace over here, so that's two fireplaces.
0:04:00 > 0:04:05It might be a little dining area, but it feels quite walled in and dark.
0:04:05 > 0:04:08And through here is the kitchen.
0:04:08 > 0:04:12Now, this is a fantastic space.
0:04:12 > 0:04:16Is it salvageable? I'm not sure. You could think about painting it.
0:04:16 > 0:04:21Probably not worth it. You might want to buy a nice, bright, shiny new kitchen.
0:04:21 > 0:04:25But the best thing is, you've got an amazing garden out there.
0:04:25 > 0:04:30I think the thing that strikes me is this house sits on an incredibly large plot,
0:04:30 > 0:04:35but I want to feel like I can see the garden, I can see the dining room,
0:04:35 > 0:04:38I know I've got the sea outside.
0:04:38 > 0:04:44It's not quite working. I think we'd need to knock a couple of walls down and just bring the outside in.
0:04:44 > 0:04:47Then I think it might work for me.
0:04:47 > 0:04:49# And let the sunshine in
0:04:49 > 0:04:52# Come over right away
0:04:52 > 0:04:54# Let the sunshine in
0:04:54 > 0:04:56# And brighten up my day
0:04:56 > 0:05:01# Send those clouds away Let the sunshine in... #
0:05:01 > 0:05:06This is a big house without that all-important feeling of space and light.
0:05:06 > 0:05:11It really needs to be opened up and the somewhat dark and muddled rooms joined together.
0:05:11 > 0:05:17There's a sun room at the back, but again it feels like it's been tacked on with no natural flow to it.
0:05:17 > 0:05:22There's even a summer room in the garden which is yet another box.
0:05:22 > 0:05:27It makes this place seem almost like a series of different boxes stacked together.
0:05:27 > 0:05:33Upstairs, there are two bedrooms - one very large master bedroom and a smaller double bedroom,
0:05:33 > 0:05:35but there are also two bathrooms.
0:05:35 > 0:05:39I've heard of clean living, but that's ridiculous.
0:05:39 > 0:05:45I really think one of those bathrooms would be much better converted into a third bedroom,
0:05:45 > 0:05:48but there's one layout feature that I do like.
0:05:48 > 0:05:52What you've got leading off both of these bedrooms is this balcony.
0:05:52 > 0:05:56I would have loved this as a kid. I love it as an adult.
0:05:56 > 0:05:58It really is quite spectacular.
0:05:58 > 0:06:03The coast, the sea, a beautiful day like today... Marvellous.
0:06:03 > 0:06:07# And I love to live so pleasantly
0:06:07 > 0:06:11# Live this life of luxury
0:06:11 > 0:06:18# Lazing on a sunny afternoon
0:06:18 > 0:06:20# In the summertime... #
0:06:20 > 0:06:22The views from the balcony might be great,
0:06:22 > 0:06:26but the height of the railing around the balcony is much less pleasing.
0:06:26 > 0:06:31It would need to be addressed to meet modern health and safety standards.
0:06:31 > 0:06:36There's no doubt you're in a great spot here, but how to make the house match up?
0:06:36 > 0:06:39Time for a bit of blue sky thinking.
0:06:39 > 0:06:43Just say you think having two bathrooms upstairs is a luxury worth keeping,
0:06:43 > 0:06:50you could easily turn the garage into an extra bedroom, a study and occasional sleeping area for guests
0:06:50 > 0:06:53or maybe think even bigger which you could do with this plot
0:06:53 > 0:06:59and build a double-storey extension on the back and add perhaps another two bedrooms upstairs,
0:06:59 > 0:07:03or flip the property round, put the bedroom space on the ground floor
0:07:03 > 0:07:09and have a lovely, big, open-plan living space upstairs with a balcony overlooking the sea.
0:07:09 > 0:07:15The property is in a great position and while there is a ceiling price you should be careful not to breach,
0:07:15 > 0:07:20the location warrants someone splashing a bit of cash here just to make it bigger and better.
0:07:22 > 0:07:25But just how deep will you have to dig in those pockets
0:07:25 > 0:07:29to make this house as fabulous as I think it could be?
0:07:29 > 0:07:32And where to start?
0:07:33 > 0:07:37Time for some advice from a local estate agent.
0:07:40 > 0:07:44They should certainly convert it to at least a three-bedroom house.
0:07:44 > 0:07:47There's plenty of scope for an extension upstairs.
0:07:47 > 0:07:53Downstairs, there's some good living accommodation, but it needs an extra bedroom at least on the first floor.
0:07:53 > 0:07:57Yes, there's no doubt it could do with an extra bedroom or two.
0:07:57 > 0:08:03But would it be worth spending money on a house that was guided at 135,000 to 145,000?
0:08:03 > 0:08:10Completely renovated, by adding a fourth bedroom perhaps into the garage and an extra bedroom upstairs,
0:08:10 > 0:08:13you could be looking in the region of £250,000.
0:08:13 > 0:08:18I think if we were to put this up for rent as a four-bedroom property,
0:08:18 > 0:08:22you could be looking in the region of £850 to £900 per calendar month.
0:08:22 > 0:08:27With its location so close to the sea, this property could also be a holiday let.
0:08:27 > 0:08:31What kind of weekly rent might it achieve for that?
0:08:31 > 0:08:35If you use it as a holiday let, you could be looking at £350 a week.
0:08:39 > 0:08:43Options for sure and views that make it worth the effort.
0:08:43 > 0:08:48Let's see who went for this lovely house in Lydd-on-Sea at the auction.
0:08:50 > 0:08:54Lot 12, detached seafront house.
0:08:54 > 0:08:58Good-sized plot. Two bedrooms and two bathrooms upstairs.
0:08:58 > 0:09:04It's got absolutely fantastic views, fabulous views right across the beach there to the sea.
0:09:04 > 0:09:06What may I say? Start me at 145?
0:09:06 > 0:09:08145 I'm bid. 150?
0:09:08 > 0:09:11150. 155? 155.
0:09:11 > 0:09:14157? 157. 160?
0:09:14 > 0:09:16160. 162?
0:09:16 > 0:09:19£160,000 I'm bid.
0:09:19 > 0:09:22Raid the kids' piggy-bank. £160,000 I'm bid.
0:09:22 > 0:09:25162 do I see? 162.
0:09:25 > 0:09:27165. 168?
0:09:27 > 0:09:30168. And 170? 170.
0:09:30 > 0:09:33172? 172.
0:09:33 > 0:09:36175. 176? No.
0:09:36 > 0:09:40At 175,000... 176.
0:09:40 > 0:09:42177...
0:09:42 > 0:09:45180. 182?
0:09:45 > 0:09:47182.
0:09:47 > 0:09:49190?
0:09:50 > 0:09:52Yeah, 190?
0:09:52 > 0:09:56190. 192. 194?
0:09:56 > 0:09:58194. 196?
0:09:58 > 0:10:03No. At £194,000 I have in the front row.
0:10:03 > 0:10:06At £194,000 then for the first time...
0:10:06 > 0:10:10£194,000 for the second time...
0:10:10 > 0:10:13194,000 for the third and final time.
0:10:13 > 0:10:18At 194,000, are you all done? Sold at 194...
0:10:18 > 0:10:22'For 194,000, nearly 50 grand over the guide price,
0:10:22 > 0:10:28'the successful bidders for the Lydd beach house were Roy and his aptly named wife Sandy.
0:10:29 > 0:10:33'Roy used to run a property developing company
0:10:33 > 0:10:38'whilst wife Sandy took charge of the administrative side of the business.
0:10:38 > 0:10:41'He retired just three years ago at the age of 71.
0:10:41 > 0:10:48'With six grown-up children to call on, they shouldn't be short of a hand or two.'
0:10:48 > 0:10:51Roy and Sandy, congratulations. Who have you bought this house for?
0:10:51 > 0:10:57It's a joint venture between us and two of our children for a holiday home.
0:10:57 > 0:10:59We had a place here before.
0:10:59 > 0:11:04- You've been looking for something new?- Yes.- Tell me about the kids and why they're involved.
0:11:04 > 0:11:07I've got a son-in-law who we call The Destroyer,
0:11:07 > 0:11:12so he will be here and he'll take anything down I want in seconds.
0:11:12 > 0:11:15I've got a grandson who's a carpenter.
0:11:15 > 0:11:20I've been in the game all my life and so have a lot of my family.
0:11:20 > 0:11:24I've got 11 grandchildren and four great-grandchildren,
0:11:24 > 0:11:27so I think it's going to get plenty of use.
0:11:27 > 0:11:32'It sure is, but before it gets invaded by the whole family,
0:11:32 > 0:11:36'it will need a little bit of work and some of Roy's know-how.'
0:11:37 > 0:11:40So, now, Roy, you've been in the game all your life.
0:11:40 > 0:11:42- Yes.- Tell me about that.
0:11:42 > 0:11:45I'm actually a speculative builder.
0:11:45 > 0:11:50I started my first house when I was 21 and I've done quite a few ever since.
0:11:50 > 0:11:55I haven't done much of this refurb work. It's been normally new stuff.
0:11:55 > 0:12:01Sandy doesn't normally have a lot to do with it, being new work, but this is of great interest to her.
0:12:01 > 0:12:08I'm hoping she'll take... She will. ..a very great interest in the inside and I shall look after the outside.
0:12:08 > 0:12:11What are you going to do to the inside to turn it around
0:12:11 > 0:12:16- because at the moment, two bedrooms, two bathrooms?- Yes, it's strange.
0:12:16 > 0:12:19It's all a bit... Inside it doesn't take in the views outside.
0:12:19 > 0:12:25The idea is to turn what is now the pink bathroom and the pink bedroom into a bedroom and en-suite
0:12:25 > 0:12:28and the other bedroom upstairs will have the other bathroom.
0:12:28 > 0:12:34- OK.- Then we're going to turn the garage into a bedroom. - Three bedrooms in total?- Yes.
0:12:34 > 0:12:39- Do you not think you could even squeeze another bedroom in? - I don't want to!
0:12:39 > 0:12:44- You've got so many kids, you've got so many grandchildren. - I don't want them all here together.
0:12:44 > 0:12:47What about The Destroyer? How excited is he?
0:12:47 > 0:12:50Tell me what he's going to destroy.
0:12:50 > 0:12:55I would like to walk round with him and say, "Get rid of that, take that down, move that."
0:12:55 > 0:13:00He'll be starting with the balcony. That'll be the first thing to get rid of.
0:13:00 > 0:13:04I'm still not entirely sure that we shouldn't knock down the wall
0:13:04 > 0:13:11between what is a conservatory at the back and the kitchen and make that into one big room through there.
0:13:11 > 0:13:16I think so. Roy, I think you should do that because at the moment, you're so cut off.
0:13:16 > 0:13:20You come in here and you can just about see the sea,
0:13:20 > 0:13:26then you go through there and it's not terribly exciting, but when you see that garden, it's amazing.
0:13:26 > 0:13:32That's a fantastic garden, but you don't see it until you get to the end of your kitchen.
0:13:32 > 0:13:35- That's the area to concentrate on. - Yeah.- What's your budget?
0:13:35 > 0:13:39I'm allowing at least 25 with a contingency of another five,
0:13:39 > 0:13:41so I'm looking for 30,000.
0:13:41 > 0:13:46'I think that £25,000 to £30,000 budget should go a long way
0:13:46 > 0:13:50'with the amount of potential free labour they have to hand.
0:13:50 > 0:13:57'They're hoping to complete the work in six months, so that all the family can enjoy some summer sun.'
0:13:57 > 0:14:03- What do you think the kids are going to make of this?- I think we shall see quite a lot of the kids.
0:14:03 > 0:14:08I think we'll see more of them here than us. They're very much looking forward to it.
0:14:08 > 0:14:13I'm so excited for you and really pleased you'll have a wonderful family time here. Well done.
0:14:13 > 0:14:16- Thank you. Well done. - Thank you.- Thank you.
0:14:16 > 0:14:21So, a holiday home for Roy and Sandy and all the family.
0:14:21 > 0:14:26I think they'll enjoy the renovation process as much as the views.
0:14:26 > 0:14:29Find out how it all goes later in the show.
0:14:38 > 0:14:45Well, yeah, you guessed it. I'm in central London today, Maida Vale to be precise.
0:14:45 > 0:14:48It's a very smart part of west London.
0:14:48 > 0:14:51The properties are like the famous people who live here -
0:14:51 > 0:14:56attractive, sought after and commanding huge sums of money.
0:14:56 > 0:15:01Now, who's the most famous person you've had in your cab? Apart from me, of course.
0:15:01 > 0:15:06- Barbara Windsor.- Barbara Windsor? Oh, right. Hugh Grant? Really?
0:15:06 > 0:15:10# Like the talk of the town
0:15:12 > 0:15:14# You've changed, you've changed
0:15:14 > 0:15:17# Your place in this world... #
0:15:17 > 0:15:22'This is an area that's changed over the years and is increasingly in demand.
0:15:22 > 0:15:27'Even by London standards, it's considered one where deep pockets are generally required.'
0:15:27 > 0:15:29Cheers. See you again.
0:15:30 > 0:15:36Here I am. Believe it or not, a property on this street sold for three million pounds.
0:15:36 > 0:15:41No, you did hear me right - three million. It's not even detached!
0:15:41 > 0:15:45The property I'm here to see is slightly more affordable.
0:15:45 > 0:15:50The guide price was 390,000 quid. It's a two-bedroom flat in this building. Let's take a look.
0:15:53 > 0:15:59The flat is on the lower ground floor and has a healthy 999-year lease.
0:15:59 > 0:16:02It also has its own separate entrance at the side,
0:16:02 > 0:16:06but will the inside be as rosy as the outside?
0:16:06 > 0:16:10Well, of all kinds of properties, basement flats are one of the ones
0:16:10 > 0:16:16that you really just don't know what you're going to find until you walk through the door
0:16:16 > 0:16:19and this is a bit of a pleasant surprise.
0:16:19 > 0:16:22The first thing to notice, great head height,
0:16:22 > 0:16:26and the second thing to notice is somebody has been doing a lot of work.
0:16:26 > 0:16:32It's had a new floor put in. I'm not sure whether the damp-proofing is up to standard.
0:16:32 > 0:16:37I'd want to have a specialist engineer or maybe a builder to check that out,
0:16:37 > 0:16:42but even if you added a few inches on here for the floor, you've still got a lot of head height.
0:16:42 > 0:16:46Two bedrooms, which is good news, one there, one towards the back.
0:16:46 > 0:16:49And then, um...
0:16:50 > 0:16:53Obviously, a bit of work in progress.
0:16:53 > 0:16:55# You might need somebody
0:16:55 > 0:17:00# You might need somebody too
0:17:00 > 0:17:03# You might need somebody too... #
0:17:03 > 0:17:06This looks like a job for the professionals.
0:17:06 > 0:17:10It needs absolutely everything. There's no bathroom, no kitchen.
0:17:10 > 0:17:16The electrics look hazardous, the walls are in a state and it needs a damp-proof course.
0:17:16 > 0:17:18It's a pile of serious work,
0:17:18 > 0:17:22but it's a two-bedroom flat with plenty of space.
0:17:22 > 0:17:26It also comes with a shared garden and another potential bonus too.
0:17:28 > 0:17:32Well, space in London properties is obviously at a premium
0:17:32 > 0:17:36and with a basement flat like this, you might not be able to go up,
0:17:36 > 0:17:39but what you might be able to do is go down.
0:17:39 > 0:17:43Turning left as you come through the front door, you find this area.
0:17:43 > 0:17:47My guess is it was originally a coal cellar or something like that,
0:17:47 > 0:17:51but as you can see, somebody has started digging out.
0:17:51 > 0:17:55So, what could this be? Well, maybe an extra room, possibly even a bedroom.
0:17:55 > 0:18:00A few things to consider - one, I'm not sure there's enough support for the roof
0:18:00 > 0:18:03and I wouldn't dig down any further
0:18:03 > 0:18:08before getting a structural engineer in to check you won't undermine the foundations,
0:18:08 > 0:18:11but as potential, wow, how exciting is this!
0:18:11 > 0:18:16- # Down, down, deeper and down... # - You need to get professional advice here
0:18:16 > 0:18:21or you could be digging a very big hole for yourself if the work went wrong.
0:18:21 > 0:18:25A third bedroom would significantly hike up the flat's value.
0:18:25 > 0:18:30There's no getting away from the fact that there may have been a fair amount of work done,
0:18:30 > 0:18:33but there is still an awful lot to do.
0:18:33 > 0:18:37What does a local estate agent make of this basement flat
0:18:37 > 0:18:40that was guided at £390,000?
0:18:40 > 0:18:42It's great. It's got the potential.
0:18:42 > 0:18:45You can add value. It's a good location, nice road.
0:18:45 > 0:18:49It's got a garden. I reckon it could be a real winner.
0:18:49 > 0:18:55What would you need to do to make it a winner in the very competitive Maida Vale property market?
0:18:55 > 0:19:00I did notice a cellar area there. That has the potential to become another bedroom.
0:19:00 > 0:19:04You could make it a three-bedroom, but you have to get that right.
0:19:04 > 0:19:07If it's too dark and damp, buyers won't like it.
0:19:07 > 0:19:10OK, it's only worth doing if it's done well,
0:19:10 > 0:19:14so what sort of prices could be achieved if kept as a two-bed?
0:19:14 > 0:19:19As a two-bedroom flat, I'd expect to put it on the market for £535,000
0:19:19 > 0:19:24and expect to receive offers in the region of £525,000.
0:19:24 > 0:19:29And if you squeezed in that third bedroom, what values might you achieve then?
0:19:29 > 0:19:35As a three-bedroom flat, I'd expect to put this on the market for somewhere in the region of £585,000.
0:19:36 > 0:19:42With a potential rent of £2,000 a month for a two-bedroom and £2,400 for a three-bed,
0:19:42 > 0:19:48even at that £390,000 guide price, this could still be a reasonable investment.
0:19:48 > 0:19:54What you've got here is a flat in an undeniably great location and yes, there is work to be done,
0:19:54 > 0:19:58but do that work and it would be a really fantastic property
0:19:58 > 0:20:01with the added advantage of a potential extra room.
0:20:01 > 0:20:05Let's see who spotted it when it went under the hammer.
0:20:07 > 0:20:12Lot 46B is a lower ground floor flat.
0:20:12 > 0:20:16It's presented in shell condition, so it needs some attention.
0:20:16 > 0:20:18Great location, Maida Vale.
0:20:18 > 0:20:23350 anywhere? 350 outside...sort of aisle. 350.
0:20:25 > 0:20:27355. 360?
0:20:28 > 0:20:31360. 365.
0:20:31 > 0:20:33370.
0:20:33 > 0:20:35375.
0:20:36 > 0:20:38380?
0:20:38 > 0:20:40380. 385?
0:20:41 > 0:20:43385. 390.
0:20:45 > 0:20:47395.
0:20:47 > 0:20:49400? 400.
0:20:49 > 0:20:52405. 410?
0:20:52 > 0:20:55410. 415?
0:20:55 > 0:20:57420.
0:20:57 > 0:20:59425.
0:20:59 > 0:21:02430? 425 with you.
0:21:02 > 0:21:04426?
0:21:06 > 0:21:11425 first time, second time, third and last time, are you all done?
0:21:11 > 0:21:14BANGS GAVEL Sold, 425.
0:21:14 > 0:21:19'So, for £35,000 over the guide price at £425,000,
0:21:19 > 0:21:22'the successful bidder was Chantana.
0:21:22 > 0:21:27'She's an office manager and property development is a side-line venture.
0:21:27 > 0:21:32'She joined me with her son Edward to explain why she's still keen to buy more properties.'
0:21:32 > 0:21:35# You keep me coming, coming back for more
0:21:35 > 0:21:38# Coming back, coming back... #
0:21:38 > 0:21:44Edward, Chantana, lovely to meet you both. Congratulations. Chantana, Lucy's met you before.
0:21:44 > 0:21:46Tell me more about that.
0:21:46 > 0:21:48Yes, in 2007.
0:21:48 > 0:21:52- Right. And where was that property? - On Edgware Road.
0:21:52 > 0:21:57But that one was a bit of a "close my eyes" type of thing.
0:21:57 > 0:22:01- I didn't see the property much. - How did that turn out?
0:22:01 > 0:22:05I'm renting it out now and, touch wood, it's been going smoothly.
0:22:05 > 0:22:09It obviously hasn't put you off because here you are in your new place.
0:22:09 > 0:22:14- No, it hasn't. Definitely not. - So, tell me why you wanted to buy this place.
0:22:14 > 0:22:18Well, the family money in the bank doesn't earn too much,
0:22:18 > 0:22:21so the thing to look for is property
0:22:21 > 0:22:27and I have always been in my blood... My family in Thailand are all developers.
0:22:27 > 0:22:29# It's in the blood
0:22:30 > 0:22:33# All about the family... #
0:22:33 > 0:22:39'Let's hope it's in the blood because this development will be down to son Edward to sort out.
0:22:39 > 0:22:45'They're keen to continue the renovation to make it a three-bed flat, so he's got his work cut out.'
0:22:45 > 0:22:49What kind of experience do you have in building and restoration?
0:22:49 > 0:22:51Just bits and bobs, really.
0:22:51 > 0:22:55My parents own a few flats around London,
0:22:55 > 0:22:57but this really is jumping in.
0:22:57 > 0:22:59It's a learning experience.
0:22:59 > 0:23:05With all our properties, if I can do a lot of the jobs myself, it will be a good investment to learn.
0:23:05 > 0:23:10Talk me through exactly what you'll do to turn it into a lovely apartment.
0:23:10 > 0:23:12Just keeping it basic, really.
0:23:12 > 0:23:18We want to open this up completely, so it's a kitchen/living room.
0:23:18 > 0:23:22- That's basic?- Well, it's not a supporting wall.- Right, OK.
0:23:22 > 0:23:24I've already checked that out.
0:23:24 > 0:23:28And then a new bathroom, a new kitchen.
0:23:28 > 0:23:33The bedrooms are pretty well done. You know, just a bit of touching up.
0:23:33 > 0:23:39The big work will be the third bedroom where we'll need a structural engineer and whatnot.
0:23:39 > 0:23:42With that work, we'll probably bring someone in,
0:23:42 > 0:23:49- but flooring, painting, maybe putting the kitchen together and tiling, I want to do myself.- Wow!
0:23:49 > 0:23:54'Edward is looking to gain a rapid apprenticeship in the building trade
0:23:54 > 0:24:00'and hopefully, with his input, they can keep the renovation costs down.'
0:24:00 > 0:24:04- So, what's the budget for the work? - Raymond is our architect.
0:24:04 > 0:24:07Yesterday, he mentioned
0:24:07 > 0:24:13- that he reckoned I could get away with 25 to 35 on the top end.- Mm-hm.
0:24:13 > 0:24:16And what's the timescale?
0:24:16 > 0:24:19We'd like to get it finished as soon as possible,
0:24:19 > 0:24:23but my mum appreciates I'm trying to learn on the job as well.
0:24:24 > 0:24:27You know, she's giving me a nice...
0:24:27 > 0:24:30- End of the year, essentially.- Yeah.
0:24:30 > 0:24:32- So, four or five months?- Yeah.
0:24:32 > 0:24:38- You'll not be cracking the whip too much?- Not too much, but he booked a holiday in December,
0:24:38 > 0:24:43- so he has to complete before his holiday.- Does he? Otherwise, he can't go?
0:24:43 > 0:24:45Exactly!
0:24:45 > 0:24:49Congratulations. Good luck with it. You've got a few jobs to do.
0:24:49 > 0:24:51- And good to see you again.- OK.
0:24:51 > 0:24:57It seems like Edward is going to have a bit of a steep learning curve over the next few months.
0:24:57 > 0:25:01Some lessons to learn, but what a great project to practise on!
0:25:01 > 0:25:07The big question is, will Mum be satisfied with the quality of the plasterwork and everything else?
0:25:07 > 0:25:09You can find out later in the show.
0:25:11 > 0:25:17'Coming up, in Staffordshire, is this a case of getting what you pay for?'
0:25:17 > 0:25:20That's one thing that could explain the cheap price.
0:25:20 > 0:25:26'Back in West London, we check Edward's progress on his first development project.'
0:25:26 > 0:25:30It's been a challenge. It has been a bit of a headache.
0:25:32 > 0:25:36'But first, have Roy and Sandy brought harmony to their holiday home?'
0:25:36 > 0:25:40No, we never agree on anything, do we?
0:25:44 > 0:25:50Lydd-on-Sea on the south Kent coast may not have classical seaside beauty,
0:25:50 > 0:25:55but its miles of coastline and vast expanse of shingle beach have an undoubted charm,
0:25:55 > 0:25:59which I'm not sure can be said of the auction lot we saw there.
0:26:00 > 0:26:03Quirky perhaps, maybe slightly unusual,
0:26:03 > 0:26:07but what charm it may have had had long since faded.
0:26:09 > 0:26:13Although fairly spacious, it boasted just two bedrooms
0:26:13 > 0:26:15and yet also had two bathrooms.
0:26:16 > 0:26:22Despite these issues, the lure of the sea drew Rochester-based retired couple Sandy and Roy
0:26:22 > 0:26:26to purchase the house at auction for 194,000,
0:26:26 > 0:26:29nearly 50 grand over the guide price.
0:26:31 > 0:26:34Who have you bought this house for?
0:26:34 > 0:26:39It's a joint venture between us and two of our children for a holiday home.
0:26:39 > 0:26:41We had a place here before.
0:26:41 > 0:26:43Sandy and Roy may be retired now,
0:26:43 > 0:26:48but previously, Roy ran a property developing company, so he has the know-how.
0:26:48 > 0:26:52With the help of tradesmen, family and friends,
0:26:52 > 0:26:55plus a budget of 25,000 to 30,000,
0:26:55 > 0:27:00they hoped to turn it into an updated holiday home in just six months.
0:27:00 > 0:27:04Now, nearly eight months later, we're back.
0:27:07 > 0:27:12It's certainly looking more holiday villa than sad seaside retreat now
0:27:12 > 0:27:16with fresh, sandy-coloured paintwork and an arched veranda...
0:27:17 > 0:27:21..new doors and fascias and a much safer balcony.
0:27:21 > 0:27:25I think I do like to be beside the seaside here now.
0:27:26 > 0:27:33While inside, the dark and dated reception room has been completely transformed.
0:27:39 > 0:27:44With an updated dining area which now leads on to the rejuvenated sun room,
0:27:44 > 0:27:48they've definitely brightened up the whole place.
0:27:53 > 0:27:56And the kitchen?
0:27:57 > 0:28:00Well, the layout might not have changed,
0:28:00 > 0:28:04but with the units re-sprayed and new flooring and decoration,
0:28:04 > 0:28:06well, what a difference!
0:28:06 > 0:28:12But what about the upstairs? Are there now more bedrooms than bathrooms?
0:28:12 > 0:28:16Well, originally, this was one passageway through here.
0:28:16 > 0:28:20That door didn't exist and this door didn't exist,
0:28:20 > 0:28:25so we had one bedroom there, one bedroom here and two bathrooms.
0:28:25 > 0:28:28This room was so big that we've been able to divide it into two
0:28:28 > 0:28:35and by inserting this door in here, we've created the situation where this bedroom has got its own suite.
0:28:35 > 0:28:39Hopefully, it'll add a few pence to the value of the property,
0:28:39 > 0:28:42but it's certainly added to our convenience
0:28:42 > 0:28:45because we now have three double bedrooms,
0:28:45 > 0:28:49a bathroom serving those two and an en-suite for this one here.
0:28:49 > 0:28:55So, a clever split of the large bedroom has given them that extra bedroom
0:28:55 > 0:28:58without losing their two bathrooms.
0:28:58 > 0:29:01As well as ready access to bathrooms,
0:29:01 > 0:29:05two of the rooms have access to the new, improved balcony.
0:29:09 > 0:29:12So it certainly seems they've been busy.
0:29:15 > 0:29:19We've got my son-in-law and we call him The Destroyer.
0:29:19 > 0:29:25Give him a hammer and he'll knock anything down! He's been extremely good, extremely helpful.
0:29:25 > 0:29:30He's not a tradesman, but he's a very handy sort of a chap.
0:29:30 > 0:29:35I've a grandson who is a carpenter. He's been extremely helpful.
0:29:35 > 0:29:40And of course my other daughter, Susan, she's helped Sandy tremendously.
0:29:40 > 0:29:44We've had an awful lot of help from the family.
0:29:44 > 0:29:50Both poor weather and some ill health have prolonged the length of the project,
0:29:50 > 0:29:55but it sounds like family and friends rallied round to finish it
0:29:55 > 0:30:01and with the plans for this to be a holiday home, not just for Roy and Sandy, but for their six children
0:30:01 > 0:30:06and their families, it might become a rather popular destination.
0:30:06 > 0:30:13- I think we might have trouble getting here ourselves.- Now they know it's finished and there's no work to do!
0:30:14 > 0:30:19So the couple might have to fight to get any time holidaying here!
0:30:19 > 0:30:23So is it all sweetness and light when THEY work together?
0:30:23 > 0:30:27No! We never agree on anything. Do we?
0:30:27 > 0:30:32- I do. I agree with Sandy. - He doesn't!
0:30:32 > 0:30:36But whoever was in charge has done a good job.
0:30:36 > 0:30:42Originally, they had a budget of £25,000. How much did it actually cost to refurbish?
0:30:46 > 0:30:48Approximately, £28,000.
0:30:48 > 0:30:56I think we would have managed a little bit closer had we had more personal supervision down here,
0:30:56 > 0:30:59but the problem is with coming so far
0:30:59 > 0:31:05and when we get here we find people haven't done quite what we wanted and we have it done again.
0:31:05 > 0:31:08£28,000 is not bad at all.
0:31:08 > 0:31:12Added to their £194,000 purchase price,
0:31:12 > 0:31:16that takes their total outlay to £222,000.
0:31:16 > 0:31:21But what sort of returns might this beachside pad see?
0:31:21 > 0:31:25What do two local estate agents think?
0:31:26 > 0:31:30The property is absolutely beautiful. It's in a glorious position,
0:31:30 > 0:31:34directly opposite the beach. They've done very well.
0:31:34 > 0:31:39It's been very nicely presented. The accommodation is good.
0:31:39 > 0:31:44There's nice features in the kitchen and I love the balcony
0:31:44 > 0:31:48Sit there on a summer's evening, enjoy that view. Lovely.
0:31:48 > 0:31:52Quite encouraging. But let's put some numbers on this house
0:31:52 > 0:31:56on which they have so far spent £222,000.
0:31:56 > 0:32:00You've got to look at a value in the region of £250,000,
0:32:00 > 0:32:08although for marketing purposes, it would be worth trying in the region of £275,000 and be open to offers.
0:32:08 > 0:32:14In the current market climate and the demand for this property, I would suggest £250,000-£275,000.
0:32:14 > 0:32:21That's about what I expected. I'd have liked a little bit more, but I'm not unhappy about that.
0:32:21 > 0:32:26We did discuss it the other day and we both asked what we thought. We both said 280.
0:32:26 > 0:32:31So the valuations were slightly less than they had hoped.
0:32:31 > 0:32:36Nevertheless, that's a potential pre-tax profit of £28,000-£53,000.
0:32:36 > 0:32:43So although they currently have no plans to let it, does it have healthy rental potential?
0:32:43 > 0:32:49On an unfurnished basis, you'd be looking at around about £850 per calendar month.
0:32:49 > 0:32:53This property would rent for £850-£900 per calendar month.
0:32:53 > 0:32:58- You happy with that?- I am happy. - All right. OK.
0:32:58 > 0:33:05Rent of about £850 per calendar month would generate an annual yield of just over 4%
0:33:05 > 0:33:09and should they decide at a later stage to let it as a holiday home,
0:33:09 > 0:33:14the estate agents reckon they could get £400 per week in the high season.
0:33:14 > 0:33:18But that's all in the future. What are they looking forward to now?
0:33:18 > 0:33:25I'm looking forward to coming down here because I want to, not because I've got to.
0:33:25 > 0:33:31- That's going to make a lot of difference. I'm very happy to come. - If the weather improves!
0:33:31 > 0:33:34It's not very good at the moment!
0:33:36 > 0:33:44Hanley, Stoke-on-Trent, is a busy town, home to a museum, a theatre and a large shopping centre.
0:33:44 > 0:33:48The lot I'm here to see is just a mile away from all that.
0:33:48 > 0:33:51So what was on offer at the auction?
0:33:51 > 0:33:56Well, let me just tell you the guide price first. £25,000.
0:33:56 > 0:33:59Yep, 25. Not much for this -
0:33:59 > 0:34:03an end of terrace, two bedrooms. In we go.
0:34:06 > 0:34:10You know, in nearly 10 years of doing Homes Under The Hammer
0:34:10 > 0:34:16and visiting probably hundreds of terraced houses, it never ceases to amaze me
0:34:16 > 0:34:20what you find behind the door of some of them.
0:34:20 > 0:34:22Ta-da!
0:34:22 > 0:34:27We've got a real mix of styles here. '60s over there, a bit of '70s, '80s here.
0:34:27 > 0:34:34A bit of Tudor here. More serious than the way it looks, something really strange is going on.
0:34:34 > 0:34:38As you walk towards this corner, it definitely starts to... Goodness!
0:34:38 > 0:34:45As you stand here and look back, the whole house is dropping down to this area. But it's a nice size.
0:34:45 > 0:34:50I love the high ceilings. It feels nice and open
0:34:50 > 0:34:54with these stairs being open plan like that. So that's good.
0:34:54 > 0:34:58Em...but, yeah, that drop certainly concerns me.
0:34:58 > 0:35:05Very classic layout, though. Come back to the rear and this really narrow kitchen area.
0:35:05 > 0:35:09Nice feature arch into it. Loo, bathroom, at the back.
0:35:09 > 0:35:13This bit really lets it down.
0:35:13 > 0:35:15So, all in all...
0:35:17 > 0:35:19Wow.
0:35:21 > 0:35:24# We built this city
0:35:25 > 0:35:29# We built this city on rock and roll... #
0:35:29 > 0:35:35This house seems to have plenty of rock in it, but unfortunately some roll as well,
0:35:35 > 0:35:38all of which needs to be sorted.
0:35:38 > 0:35:44The decor is certainly eclectic and with a small bathroom beyond that narrow galley kitchen,
0:35:44 > 0:35:51the layout's far from ideal. So it's only that relatively low guide price that's music to my ears.
0:35:51 > 0:35:58Upstairs, there's a good sized double at the front with yet more rock, but less sign of roll.
0:36:00 > 0:36:03Whereas the back bedroom... Oh, dear.
0:36:03 > 0:36:09You know, you have to trust your first instincts when you go into a property.
0:36:09 > 0:36:16Downstairs, that sloping floor is obviously a problem. Come up here to the rear bedroom and it's worse.
0:36:16 > 0:36:23You've got a crack there and there, some major damp from the water coming in through the cracked walls.
0:36:23 > 0:36:28And, again, this corner of the house is really suffering some major problems.
0:36:28 > 0:36:33That's one thing that could explain the cheap price.
0:36:33 > 0:36:36# Oh, the price you pay
0:36:36 > 0:36:39# You can't walk away
0:36:39 > 0:36:43# From the price you pay... #
0:36:46 > 0:36:50Well, this might be a case of "you get what you pay for",
0:36:50 > 0:36:56but even with some potential problems you do get a lot of house for your money.
0:36:56 > 0:37:02There's a gated area at the side that leads to a back alleyway. As it's had a couple of extensions
0:37:02 > 0:37:08to accommodate the kitchen and downstairs bathroom, there's no outside space to speak of.
0:37:08 > 0:37:16So it's not really an ideal family house, but as a potential rental property it has its merits.
0:37:17 > 0:37:22What does a local estate agent make of this "cracking" house?
0:37:22 > 0:37:29The property requires general modernisation throughout - new kitchen, bathroom, windows.
0:37:29 > 0:37:37There are some signs of structural movement which it would be advisable to investigate further.
0:37:37 > 0:37:43Clearly there are some issues that need to be addressed, but what would be the best approach
0:37:43 > 0:37:47- for this two-bed semi guided at £25,000.- In the current market,
0:37:47 > 0:37:51it's an excellent investment property for a landlord.
0:37:51 > 0:37:56It will offer an excellent yield and that's the likely way to go.
0:37:56 > 0:38:02If rental's the best approach, what kind of values are we looking at?
0:38:02 > 0:38:07After renovation, I would suggest a rental figure in the region of £400 per calendar month.
0:38:07 > 0:38:14And that's a decent rental value, particularly for a house that was guided at just £25,000.
0:38:14 > 0:38:20- What about resale?- I would anticipate a marketing price in the region of £50,000-£55,000.
0:38:22 > 0:38:28Well, at first glance you might think, "Avoid this place like the plague."
0:38:28 > 0:38:32However, it's all about the price you pay. If it's cheap enough,
0:38:32 > 0:38:36you can build in the costs of having to put any problems right
0:38:36 > 0:38:41and still end up with something that delivers an incredible yield.
0:38:41 > 0:38:45Let's see who wasn't put off when it went under the hammer.
0:38:48 > 0:38:52Lot 17. An end terraced house.
0:38:52 > 0:38:58uPVC double glazing, two bedrooms, bathroom downstairs. Let's get it going at 12.
0:38:58 > 0:39:03We really want to sell this. 12 bid. At £12,000. Looking for 15 now.
0:39:03 > 0:39:06£15,000. Do you want to go ones?
0:39:06 > 0:39:0816. Yeah.
0:39:08 > 0:39:1017.
0:39:10 > 0:39:1218? 18.
0:39:12 > 0:39:1519. 20.
0:39:16 > 0:39:19Right on the back. 21.
0:39:19 > 0:39:2122?
0:39:21 > 0:39:2522. Shaking his head. Still with you, sir.
0:39:25 > 0:39:28£22,000. Another one anywhere else?
0:39:28 > 0:39:32If not, £22,000 for the first time. Bid's seated right, no mistake.
0:39:32 > 0:39:39£22,000 for the second time. Third and final time, then, at £22,000.
0:39:39 > 0:39:42Are we all done? Well done.
0:39:42 > 0:39:47So for £22,000 - £3,000 less than the guide price -
0:39:47 > 0:39:53the successful bid was made by Wayne for his brother Stuart and sister-in-law Carmen.
0:39:53 > 0:39:59They live in Shropshire and have run a car repair garage and done some holiday lettings in the past,
0:39:59 > 0:40:03but this is their first venture into property development.
0:40:03 > 0:40:09I met Carmen back at the two-bed end-of-terraced house to find out their plans.
0:40:09 > 0:40:14- Carmen, great to meet you.- And you. - Tell me why you wanted to buy this place?
0:40:14 > 0:40:21Well, we were looking for somewhere in the area and we viewed several properties.
0:40:21 > 0:40:28Went along to the auction. This wasn't our top priority, but it came early on in the list
0:40:28 > 0:40:32and it went for such a good price that we went for it and got it.
0:40:32 > 0:40:37- What did you think about that price? - Well, it was...yeah.
0:40:37 > 0:40:40Everything else we were looking at was high 30s, really,
0:40:40 > 0:40:48so it's got such a good margin and return on it. Hopefully, we can't go too far wrong with it.
0:40:48 > 0:40:52So tell me more about you. What do you do?
0:40:52 > 0:40:57- Been running a small village repair garage.- Ah.- And some holiday lets up in Shropshire.
0:40:57 > 0:41:02- So what's tempted you here? - Investment, really.
0:41:02 > 0:41:08The price, what you can get, hopefully, in rental return for what you're outlaying.
0:41:09 > 0:41:16'Carmen's brother-in-law Wayne already owns a few houses in the area, so they had some idea
0:41:16 > 0:41:22'of potential rental returns and yields, which was the driving force behind buying in Hanley.
0:41:22 > 0:41:26'But a decent investment doesn't just depend on the return you get.
0:41:26 > 0:41:33'It also depends on how much you have to spend to get those returns and this one has a few problems.'
0:41:33 > 0:41:36- Tell me what you think of the house. - Yeah...!
0:41:36 > 0:41:42Well, yeah, it's rather a mixture, isn't it, of cottage and dated
0:41:42 > 0:41:49and '80s and '70s and everything thrown in together. It just needs some upgrading.
0:41:49 > 0:41:57We've got a new boiler, bathroom, kitchen that we want to do, then some plastering and decor.
0:41:57 > 0:42:01There does seem to be a sort of slope towards where I'm standing,
0:42:01 > 0:42:07- towards this corner of the property. Are you aware of that? - Not too much, no.
0:42:07 > 0:42:11- I don't think anything's shown up. - No subsidence or anything?- No.
0:42:11 > 0:42:16'So Carmen's not overly concerned with the structural issues
0:42:16 > 0:42:22'as she's confident that husband Stuart and brother-in-law Wayne can sort them out.
0:42:22 > 0:42:27'They hope to finish and have a tenant in place in just two months.'
0:42:27 > 0:42:29So what's the budget for the work?
0:42:29 > 0:42:32Probably around £4,000.
0:42:32 > 0:42:37- Doing a lot of work yourself?- Yes. Well, my husband and brother-in-law.
0:42:37 > 0:42:45- So your total investment in this is going to be what? - It'll be about...26, 27.
0:42:45 > 0:42:51- For £27,000, you'll have a pretty up together house.- Yeah. - Generating what rental returns?
0:42:51 > 0:42:55There are some as low as 325, but there are some up around 400.
0:42:55 > 0:42:59So I think anything in-between that.
0:42:59 > 0:43:06- But if you could get something towards 400, that would be £4,800 a year?- Yeah.
0:43:06 > 0:43:10- On a £27,000 investment!- Yeah.
0:43:10 > 0:43:15- That's a phenomenal yield, isn't it? - Yeah, absolutely.- Congratulations. - Thank you.
0:43:15 > 0:43:19- Good luck with it. Look forward to seeing how you get on.- Lovely.
0:43:19 > 0:43:25Well, you can't argue with the fact that Carmen got this place at a pretty incredible price
0:43:25 > 0:43:29and she doesn't seem too fazed by the work needed to sort it out,
0:43:29 > 0:43:34although £4,000 will not stretch to major structural work
0:43:34 > 0:43:42and I have to say I think it needs it. So how will she get on? You can find out later in the show.
0:43:44 > 0:43:48It's been many months now since we last saw those properties.
0:43:48 > 0:43:53Do they look any different and has the time and money been well spent?
0:43:53 > 0:43:56- I think we should go back and reveal all.- Let's do that.
0:44:01 > 0:44:05In Maida Vale, West London, a two-bedroom, lower ground floor flat
0:44:05 > 0:44:09went to auction in what was described as "shell condition".
0:44:09 > 0:44:14That's stripped right back to the walls to me and you.
0:44:16 > 0:44:22To experienced property developer Chantana, none of this was particularly daunting.
0:44:22 > 0:44:25It was just another renovation.
0:44:25 > 0:44:30After buying it for £425,000, she was hoping it would be
0:44:30 > 0:44:36the perfect opportunity for her son, Edward, to learn about project managing a development.
0:44:36 > 0:44:42So, armed with a £25,000-£35,000 budget, it was going to be down to him.
0:44:44 > 0:44:46And what's the timescale?
0:44:46 > 0:44:51You know, she's given me a nice end of the year, essentially.
0:44:51 > 0:44:54- So four or five months.- Yeah.- Great.
0:44:54 > 0:45:01- You're not going to be cracking the whip too much?- Not too much, but he's going on holiday in December,
0:45:01 > 0:45:07- so he has to complete before his holiday! - Otherwise he can't go?- Exactly!
0:45:07 > 0:45:14Well, 4-5 months may seem a reasonable amount of time, but there was an awful lot to do here.
0:45:14 > 0:45:19With the hope of also converting the basement into a third bedroom,
0:45:19 > 0:45:25Edward certainly had his work cut out to get his first renovation project ready to let.
0:45:29 > 0:45:36Now a full 11 months have flown by and Edward's holiday has been and gone.
0:45:36 > 0:45:38How is the flat looking?
0:45:44 > 0:45:49Well, it's certainly less shell and more chic.
0:45:49 > 0:45:55With a new, open-plan layout, this lower ground floor flat is anything but dark and dingy.
0:45:55 > 0:46:00So how has Edward coped with his first-ever development project?
0:46:00 > 0:46:05It has been a challenge. It has been a bit of a headache,
0:46:05 > 0:46:12but, if I'm being honest, being here to see it now and seeing the photos of how it was before,
0:46:12 > 0:46:14I'm very happy with the job.
0:46:19 > 0:46:26Yes, it's certainly a big improvement with new plasterwork, flooring, central heating, electrics
0:46:26 > 0:46:28and decoration.
0:46:28 > 0:46:33The two-bedroom flat has been completely overhauled
0:46:35 > 0:46:41And now that it's got a good-size family bathroom, it's nearly finished.
0:46:42 > 0:46:44But not quite.
0:46:47 > 0:46:54This is the last bit. We have to put in the double door, which is folded back.
0:46:54 > 0:46:59It's made of glass, so they can get some light through in the kitchen.
0:46:59 > 0:47:05Hopefully, it should be done within the next couple of days, then everything is finished.
0:47:05 > 0:47:12So the kitchen area is just missing some doors, but the flat is missing one other thing -
0:47:12 > 0:47:17the potential third bedroom in the cellar. Work on that is on hold.
0:47:17 > 0:47:24But they have had the plans drawn up and a structural survey done, which contributed to the delay
0:47:24 > 0:47:29in finishing the rest of the flat. So who's been the boss so far?
0:47:29 > 0:47:33Well, my mum was very good, actually.
0:47:33 > 0:47:35She left it mainly to me.
0:47:35 > 0:47:40She completely handed the reins over to me
0:47:40 > 0:47:44and I hope she's happy. You can ask her that.
0:47:44 > 0:47:49He's done a lot of work. The credit has to be given to my son, Ed.
0:47:49 > 0:47:55He put in a lot of effort and he's gone through a lot of good and bad points.
0:47:55 > 0:48:02I had to keep holding his hand and, you know, telling him that he's doing a good job!
0:48:02 > 0:48:06Well, Chantana may be happy with what has finally been achieved here,
0:48:06 > 0:48:14but the time taken has significantly increased. Did the same happen with the £25,000-£35,000 budget?
0:48:15 > 0:48:21The budget came out at £40,000 for building works
0:48:21 > 0:48:29and probably another £10,000 for all the architects, structural engineer,
0:48:29 > 0:48:32building regulator, building licence.
0:48:32 > 0:48:34So £50,000 altogether.
0:48:35 > 0:48:40A £50,000 spend on top of their £425,000 purchase price
0:48:40 > 0:48:43will take their total outlay to £475,000,
0:48:43 > 0:48:49to get this two-bedroom, lower ground floor flat ready for the market.
0:48:49 > 0:48:55Have Edward's endeavours paid off? What do two local estate agents think?
0:48:55 > 0:49:00They've done a very good job. The challenge with the lower level is creating light.
0:49:00 > 0:49:08They've done that very well by opening up the kitchen, taking the wall down, bringing light through.
0:49:08 > 0:49:11So, overall, not a bad job.
0:49:11 > 0:49:18For a garden flat, nice and bright. The rooms are proportioned nicely - two double bedrooms, big bathroom.
0:49:18 > 0:49:23Nice-sized kitchen for a breakfast table, breakfast bar. It's lovely.
0:49:23 > 0:49:28This flat was always aimed at the rental market,
0:49:28 > 0:49:32but have Chantana and Edward invested their £475,000 wisely?
0:49:33 > 0:49:37I would put it on the market somewhere in the region of £550,000.
0:49:37 > 0:49:41You should be looking to achieve in the region of £550,000.
0:49:41 > 0:49:44Fantastic. Very happy with that.
0:49:44 > 0:49:48That's very good. A potential pre-tax profit of £75,000.
0:49:48 > 0:49:53Will the rental figures be as impressive?
0:49:53 > 0:49:58For rentals, a monthly rent as a two-bed would be somewhere in the region of £2,000.
0:49:58 > 0:50:03As a two-bedroom flat, you should be getting £1,800-£2,000 a month.
0:50:03 > 0:50:09- Around about what we thought. - That's right, yes.- 500 a week, yeah.
0:50:10 > 0:50:12I could live with that.
0:50:12 > 0:50:17Those kind of rental rates would see an annual yield of 4-5%.
0:50:17 > 0:50:20Not spectacular, but OK.
0:50:20 > 0:50:25And certainly as a long-term investment this should be fine.
0:50:25 > 0:50:31So after this rather protracted development, will they do any more property projects?
0:50:32 > 0:50:35I would, but might...take a break!
0:50:36 > 0:50:38Not so soon!
0:50:38 > 0:50:41I completely agree.
0:50:41 > 0:50:45Yes, we would, but have a little breather first
0:50:45 > 0:50:51and, you know, catch up on all the other work I've been putting on the sidelines.
0:50:53 > 0:50:58In the Hanley area of Stoke-on-Trent, I came across
0:50:58 > 0:51:05an end of terrace that was bought for an astonishing £22,000. That's £3,000 under the guide price?
0:51:05 > 0:51:11From the outside it seems too good to be true, but the cracking interior seems to suggest
0:51:11 > 0:51:14it might not be a bargain after all.
0:51:14 > 0:51:18Along with tilted floors, boarded-up windows
0:51:18 > 0:51:25and an eclectic mix of decades in the decor, this property was needing a little bit of attention.
0:51:28 > 0:51:35Despite all this, the property was bought by Shropshire-based husband and wife Carmen and Stuart,
0:51:35 > 0:51:40thanks to a winning bid by Stuart's brother, Wayne.
0:51:40 > 0:51:45Carmen and her husband Stuart have run a garage and have some holiday lets.
0:51:45 > 0:51:50The plan was that Stuart and Wayne would do the work while Carmen project managed.
0:51:50 > 0:51:56- What do you think about that price? - Well, it's got such a good margin and return.
0:51:56 > 0:51:58Hopefully, we can't go too far wrong.
0:51:58 > 0:52:05And with the property aimed at the rental market, the figures seemed to add up.
0:52:05 > 0:52:10But with a proposed £4,000 budget and hopes to have it finished in just two months,
0:52:10 > 0:52:16this was going to be quite a challenge. Now just under three months later, we're back
0:52:16 > 0:52:21with Carmen's brother-in-law Wayne, to see how they got on.
0:52:25 > 0:52:27Well, it looks like the answer is...
0:52:29 > 0:52:36..pretty well. Not only has the patchwork of design styles all been brought up to date,
0:52:36 > 0:52:41but this is clearly now not just a house, it's a home.
0:52:41 > 0:52:47A tenant has moved in to this replastered, redecorated, centrally-heated property
0:52:47 > 0:52:50with a completely revamped kitchen.
0:52:50 > 0:52:54The kitchen, as you can see, we fitted it quite well.
0:52:54 > 0:52:58It was a second-hand one we bought on the internet.
0:52:58 > 0:53:02We sourced new worktops and the boiler is in the corner,
0:53:02 > 0:53:07which we sourced second-hand again on the internet, but it was new.
0:53:07 > 0:53:13The lino we bought as a job lot. And, believe it or not, the actual leg here
0:53:13 > 0:53:17we found in a local skip, which finishes it off quite well.
0:53:17 > 0:53:19All in all, it looks quite well.
0:53:19 > 0:53:25It still leads to a downstairs bathroom, but, boy, is it much improved!
0:53:36 > 0:53:40Upstairs, the large front bedroom is now bright and modern.
0:53:48 > 0:53:56While the back bedroom is looking in a pretty fit state without a crack or a sign of damp in sight.
0:53:56 > 0:54:01Upstairs, all the floorboards we ripped up. They were rotten.
0:54:01 > 0:54:07Then we kind of tried to level it out as good as we could, put new floorboards down.
0:54:07 > 0:54:12The crack, we just got it back to bare bricks and rebuilt that area,
0:54:12 > 0:54:15and it looks better than it was before.
0:54:15 > 0:54:23It's over a 100-year-old house so we'd expect it to be a little bit not totally square.
0:54:25 > 0:54:30That sloping floor downstairs was resolved by laying a concrete base.
0:54:30 > 0:54:36As you can see, we've replaced the windows. Double-glazed windows in the kitchen and bathroom.
0:54:36 > 0:54:43And also put a new back door on. We didn't replace the actual window, just the double-glazing units.
0:54:43 > 0:54:46I think they've done a remarkable job here.
0:54:46 > 0:54:51Wayne and his brother Stuart just worked at weekends and stayed over,
0:54:51 > 0:54:58but why has Wayne put so much time and effort into a property that isn't even his?
0:54:58 > 0:55:05The idea behind it is I helped him free of charge and next property he'll help me free of charge.
0:55:05 > 0:55:10That sounds like a great way of working. It's paid dividends for Carmen and Stuart.
0:55:10 > 0:55:15They've not only got a fully renovated house, but also a tenant.
0:55:15 > 0:55:22We sourced a tenant through the local paper. We had a few and just got the best one out of the bunch.
0:55:22 > 0:55:28It worked out at £395 rent per month. Hopefully, the tenant stays a long time
0:55:28 > 0:55:30and we don't get redecoration fees!
0:55:30 > 0:55:38£395 a month seems like a healthy rent and a potential long-term tenant is a bonus.
0:55:38 > 0:55:44But how much did it cost to get this two-bed, end-of-terrace house up to scratch?
0:55:46 > 0:55:49The original budget would have been £4,000.
0:55:49 > 0:55:53And we spent just under £5,000.
0:55:53 > 0:55:59So a £5,000 spend on top of their £22,000 purchase price
0:55:59 > 0:56:05will take Carmen and Stuart's total outlay to a remarkable £27,000 without costs and fees.
0:56:05 > 0:56:10But is it really as good value as it sounds?
0:56:10 > 0:56:15What do two local estate agents make of their investment?
0:56:15 > 0:56:19It's obviously been refurbished. An excellent property for renting.
0:56:19 > 0:56:24It's certainly been improved. New kitchen, new bathroom, rewire.
0:56:24 > 0:56:28It's a lot fresher than when I saw it and it's ready to live in.
0:56:28 > 0:56:35This was clearly done as a rental property, but what sort of return could they get
0:56:35 > 0:56:39if they sold their £27,000 investment?
0:56:39 > 0:56:43I would anticipate a resale value in the region of £50,000.
0:56:43 > 0:56:46I'd put it on the market for £45,000.
0:56:46 > 0:56:52Absolutely fantastic. Really good for what we spent on it. That's a great return.
0:56:53 > 0:56:58That's a potential pre-tax profit of £18,000-£23,000.
0:56:58 > 0:57:03But it's the rental yield that was likely to be the most impressive.
0:57:03 > 0:57:07So is their current rental income of £395 per calendar month
0:57:07 > 0:57:11as healthy a return as they could get?
0:57:11 > 0:57:15Rental income I'd anticipate in the region of £400 per calendar month.
0:57:15 > 0:57:19I'd rent this for £350 per month.
0:57:19 > 0:57:25So with £395 per calendar month being at the higher end of those rental values,
0:57:25 > 0:57:31it sounds like they are getting the best rental return and the yield that delivers?
0:57:31 > 0:57:33It's a whopping 16%.
0:57:34 > 0:57:39That means the house could pay for itself in under six years.
0:57:39 > 0:57:44So I think we should call this a success, shouldn't we, Wayne?
0:57:44 > 0:57:48It's been different. It's been hard, highs and lows, but great fun.
0:57:48 > 0:57:54And spending time with my brother has been great over the last 12 weeks. We'll be doing it again.
0:57:56 > 0:58:01We hope you've enjoyed watching and perhaps learned some lessons.
0:58:01 > 0:58:05- Make sure you join us next time. - We'll see you then.- Goodbye.
0:58:21 > 0:58:24Subtitles by Red Bee Media Ltd