0:00:02 > 0:00:05Property auctions used to be just the territory
0:00:05 > 0:00:08of builders and developers, but not any more.
0:00:08 > 0:00:12- All kinds of people go to property auctions these days.- Yes.
0:00:12 > 0:00:15Even in these difficult market conditions,
0:00:15 > 0:00:18people manage to find a bargain when they buy under the hammer.
0:00:43 > 0:00:46Even for the most experienced buyers,
0:00:46 > 0:00:50auctions can be exciting and nerve-racking places.
0:00:50 > 0:00:53You have to make sure you don't get carried away.
0:00:53 > 0:00:58Did today's buyers keep a cool head and get some great deals? Here's what they bid for.
0:01:00 > 0:01:03'In Liverpool, this place requires drastic measures.'
0:01:03 > 0:01:06You want to get rid of every single internal wall,
0:01:06 > 0:01:09leave yourself a shell and start again!
0:01:10 > 0:01:13'Whereas, in a maisonette in the London area of Bow,
0:01:13 > 0:01:16'I do a bit of sight-seeing.'
0:01:17 > 0:01:19Got a great view of the kitchen.
0:01:21 > 0:01:25'And I visit a house in Packmoor, Staffordshire,
0:01:25 > 0:01:27'for my next TRIP.'
0:01:27 > 0:01:30Oh, crikey! There's a very nasty step!
0:01:31 > 0:01:33'All these properties have been sold at auction.
0:01:33 > 0:01:36'We'll find out who bought them and what they paid
0:01:36 > 0:01:39- 'when they went under the hammer.' - Thank you very much.
0:01:45 > 0:01:49'I'm in the highly desirable suburb of Woolton in Liverpool,
0:01:49 > 0:01:52'a place with some very iconic connections.
0:01:54 > 0:01:58'Well, it has to be the Beatles, doesn't it?'
0:01:59 > 0:02:02And this is St Peter's Church.
0:02:02 > 0:02:07Not only is it the place where John Lennon and Paul McCartney met
0:02:07 > 0:02:10at a church hall dance in 1957,
0:02:10 > 0:02:13it also houses the grave of John Lennon's uncle
0:02:13 > 0:02:16and a certain Eleanor Rigby.
0:02:17 > 0:02:22# One by one they will find you
0:02:24 > 0:02:29# Life goes on behind you... #
0:02:29 > 0:02:35The land round here would at one time been part of one of the many manor estates in the area.
0:02:35 > 0:02:39Over time, it's been sold off and you now have a mixture
0:02:39 > 0:02:42of houses built in the 1970s, '60s,
0:02:42 > 0:02:44dating back to the '30s and '40s over here.
0:02:44 > 0:02:47The one I'm here to see dates back much further.
0:02:47 > 0:02:51It's 150 years old, probably the oldest house on the street.
0:02:51 > 0:02:53It's a cottage, guide price 175,000 quid.
0:02:53 > 0:02:55Let's take a look.
0:02:55 > 0:02:58'This building has lots of character,
0:02:58 > 0:03:04'although some may take exception to those unsympathetic uPVC windows.'
0:03:04 > 0:03:07Love the brickwork!
0:03:09 > 0:03:12But what about inside? Well, um...
0:03:14 > 0:03:17I don't like this. This is the entrance to the property.
0:03:17 > 0:03:20You've got a loo with too much space.
0:03:20 > 0:03:22You could put washing machines in.
0:03:22 > 0:03:25This door scenario going on here just doesn't work
0:03:25 > 0:03:28because this is the kitchen.
0:03:28 > 0:03:31It gets better once you come in here,
0:03:31 > 0:03:34because this is actually quite an appealing room.
0:03:34 > 0:03:38Feels a bit cramped because of the low ceilings, but it is a cottage.
0:03:38 > 0:03:42In terms of the units, they're fairly old-fashioned
0:03:42 > 0:03:44but probably serviceable.
0:03:44 > 0:03:49You can think about sticking new fronts on rather than replace the whole thing.
0:03:49 > 0:03:53Then through to this, which is... I don't know how to describe it.
0:03:53 > 0:03:56It's like a transit room. You come through the kitchen.
0:03:56 > 0:03:58There's another door there,
0:03:58 > 0:04:01another door there, doors up to the stairs.
0:04:01 > 0:04:03As a layout, it's not working.
0:04:03 > 0:04:07Low ceilings with polystyrene tiles, which you've got to get rid of.
0:04:07 > 0:04:10A few positives - you've got a fireplace, gas fire.
0:04:10 > 0:04:14Get rid of that and put something a bit more characterful.
0:04:14 > 0:04:17It's not working yet, grrr!
0:04:18 > 0:04:22'Every time you walk into a room, it seems to lead on to another one,
0:04:22 > 0:04:25'which makes it all appear rather narrow.
0:04:26 > 0:04:32'There's a second downstairs living room with patio doors to the garden
0:04:32 > 0:04:36'and an adjoining lobby with another door to the outside world.
0:04:36 > 0:04:38'And that's the ground floor.'
0:04:38 > 0:04:42Upstairs, if you were hoping for a dramatic improvement in the layout
0:04:42 > 0:04:45you are going to be sadly disappointed.
0:04:45 > 0:04:48Bedroom there. You've got a bathroom here.
0:04:48 > 0:04:50You've got this corridor,
0:04:50 > 0:04:54which runs the whole length of the property, and off it are the rooms.
0:04:54 > 0:04:56Strange little bedroom.
0:04:56 > 0:05:00I'm wondering if at some point it was the bathroom. It's very odd.
0:05:00 > 0:05:03Then down that way to the final bedroom.
0:05:03 > 0:05:07You've got the right number of bedrooms, it's just this layout.
0:05:07 > 0:05:11There is, however, hope when you look out the back window.
0:05:11 > 0:05:14There's clearly space to extend the property.
0:05:14 > 0:05:18If you did that, you could get rid of all the problems here.
0:05:18 > 0:05:21In terms of this bit, what I'm thinking,
0:05:21 > 0:05:24in a way, you want to get rid of every single internal wall,
0:05:24 > 0:05:27leave yourself a shell and start again.
0:05:27 > 0:05:31# Even though it's complicated
0:05:31 > 0:05:35# We've got time to start again... #
0:05:35 > 0:05:39'A radical rethink would be just what this poor old property needs.
0:05:39 > 0:05:43'With all this land and a guide price of 175,000,
0:05:43 > 0:05:48'I'm excited about the potential for extending this lovely cottage.
0:05:48 > 0:05:51'I wonder if the planners would be equally keen.
0:05:53 > 0:05:56'We asked a local estate agent for her thoughts
0:05:56 > 0:05:59'on the prospects for this place.'
0:06:02 > 0:06:06This is a lovely character property on a really nice plot.
0:06:06 > 0:06:08It does need renovating throughout.
0:06:08 > 0:06:13To add value to the property, there's the option of extending,
0:06:13 > 0:06:15subject to planning permission.
0:06:15 > 0:06:19'After a refurbishment, how much could the cottage be worth,
0:06:19 > 0:06:22'compared to its current valuation?'
0:06:22 > 0:06:26In its current state, I estimate the valuation of the property to around £210,000.
0:06:26 > 0:06:31Once the property has been refurbished, I would estimate the value to be around £330,000.
0:06:31 > 0:06:35If they did an extension, this could be considerably more.
0:06:35 > 0:06:37'With no extension but a full refurbishment,
0:06:37 > 0:06:41'how much rental income could the cottage generate?'
0:06:41 > 0:06:48I would estimate the monthly rental, once refurbished, to be £750 to £800 per calendar month.
0:06:48 > 0:06:51Well, it's certainly a characterful cottage
0:06:51 > 0:06:54in a very desirable location,
0:06:54 > 0:06:59but one of those properties that is going to soak up a lot of money.
0:06:59 > 0:07:03I'm sure it was incredibly popular when it went under the hammer.
0:07:03 > 0:07:06Pass over to lot 30, excellent location.
0:07:06 > 0:07:09Three-bedroom detached property in the Woolton area.
0:07:09 > 0:07:11I think there's the scope
0:07:11 > 0:07:15for further expansion with this property, too.
0:07:15 > 0:07:18Start me at 150, then? Let's see a bid of 150.
0:07:18 > 0:07:21150 second row. 150 bid.
0:07:21 > 0:07:25Five next? At 150. Surely worth more. 155?
0:07:25 > 0:07:27Bid. 160?
0:07:27 > 0:07:29160. And five?
0:07:29 > 0:07:33170 next. 175 now? 175 here...
0:07:33 > 0:07:35'There was considerable interest at auction.
0:07:35 > 0:07:38'We rejoin it at 200,000.'
0:07:38 > 0:07:41..200,000 is bid. And two.
0:07:41 > 0:07:43202 with the finger. Thank you.
0:07:43 > 0:07:45204? 204.
0:07:46 > 0:07:48205?
0:07:48 > 0:07:51206? 207?
0:07:51 > 0:07:53208? Yes. 209?
0:07:55 > 0:07:57210? 211?
0:07:58 > 0:07:59212?
0:07:59 > 0:08:01213?
0:08:01 > 0:08:03214?
0:08:03 > 0:08:05215? 216?
0:08:06 > 0:08:08217?
0:08:09 > 0:08:11217.
0:08:11 > 0:08:13218? 218.
0:08:13 > 0:08:15219? 219.
0:08:15 > 0:08:17220?
0:08:17 > 0:08:19220. 221?
0:08:20 > 0:08:23On my right, going once at 220.
0:08:23 > 0:08:27Going twice at 220... And one, new money. 221.
0:08:27 > 0:08:29222? 222.
0:08:30 > 0:08:32223? 224?
0:08:33 > 0:08:35224.
0:08:35 > 0:08:37225? 226.
0:08:37 > 0:08:41Is that a yes or were you agreeing with what he said? 226.
0:08:41 > 0:08:43227?
0:08:43 > 0:08:44228 now?
0:08:44 > 0:08:47229?
0:08:47 > 0:08:48230?
0:08:48 > 0:08:50231?
0:08:51 > 0:08:53231. 232?
0:08:53 > 0:08:57231 now. At 231 still this side.
0:08:57 > 0:09:01Are you all finished? Hammer's up. Coming down. 231, we sell.
0:09:01 > 0:09:04Thank you very much. 231,000.
0:09:04 > 0:09:08'That final bid of £231,000 was made by John,
0:09:08 > 0:09:11'who's a transport consultant.
0:09:11 > 0:09:14'He's bought at auction before and that property is rented out.
0:09:14 > 0:09:17'This is his second investment purchase.
0:09:17 > 0:09:21'I met him at the cottage to find out more.'
0:09:21 > 0:09:24- John, great to meet you.- Hello. - Congratulations.- Thank you.
0:09:24 > 0:09:28- Tell me why you wanted to buy this place.- We saw it a few weeks back.
0:09:28 > 0:09:34We were looking for a property to renovate and this fitted the bill.
0:09:34 > 0:09:38- "We"? Who's that?- Me and my wife. - Why this particular house, then?
0:09:38 > 0:09:42When we looked at it, it just stuck out as having the most potential,
0:09:42 > 0:09:45something we could do a lot with, that's what we're after.
0:09:45 > 0:09:49- What are you going to do to it? - Ideally, double the size of it.
0:09:49 > 0:09:54- Double the size?- Approximately - obviously subject to planning.
0:09:54 > 0:10:00- And if we could do, we'd split it into two houses and make it into a pair of semi-detached.- Wow!
0:10:00 > 0:10:02Talk me through how that works.
0:10:02 > 0:10:05It's a long thin property at the moment.
0:10:05 > 0:10:10If we extend backwards to make it twice the size, we can split it in half down the middle.
0:10:10 > 0:10:14Each would have an old part and a new part and frontage onto the road.
0:10:16 > 0:10:22'John's adventurous plans would convert this into two three-bedroom semi-detached properties,
0:10:22 > 0:10:24'each with a drive and garden.
0:10:24 > 0:10:26'It sounds great if he can do it,
0:10:26 > 0:10:30'but it will all depend on that vital planning permission.'
0:10:30 > 0:10:34A lot of this is down to what the planners say, obviously.
0:10:34 > 0:10:37- Have you made any preliminary enquiries with them?- Yeah.
0:10:37 > 0:10:41Before I went to auction, I had a chat, a pre-application chat.
0:10:41 > 0:10:43They seemed fairly confident,
0:10:43 > 0:10:48given other works that properties in the street have seen done.
0:10:48 > 0:10:51The general message was that they were positive towards extension,
0:10:51 > 0:10:54- a fairly sizeable extension. - Good news.
0:10:54 > 0:10:58What's the costs for doing that? Do you have any idea at this point?
0:10:58 > 0:11:02Yeah. We've got a budget set aside, probably about 130,000.
0:11:02 > 0:11:04But that's very tentative
0:11:04 > 0:11:08- and subject to raising finance from various areas.- Right, OK.
0:11:08 > 0:11:12You're spending 360-odd grand. You've got to be pretty confident
0:11:12 > 0:11:15you'll sell them at least for 180,000 each.
0:11:15 > 0:11:17I think that's achievable.
0:11:17 > 0:11:20We do have various fall-back options.
0:11:20 > 0:11:24We could extend it substantially and keep it as a single dwelling,
0:11:24 > 0:11:28which wouldn't be out of character with properties in the road.
0:11:28 > 0:11:31And failing that, we could just renovate the property
0:11:31 > 0:11:34and I think we'd still make a small return.
0:11:34 > 0:11:37- So you've got a plan A, plan B and plan C?- Absolutely.
0:11:37 > 0:11:41It's such a big commitment, I wouldn't restrict my options.
0:11:41 > 0:11:43- The idea would be to sell them? - Ideally, yes.
0:11:43 > 0:11:47I'd be happy to put them on the rental market, if necessary.
0:11:47 > 0:11:51With a growing family, I may even move into one as a fall-back.
0:11:51 > 0:11:55# Something to fall back on
0:11:55 > 0:11:58# Something to fall back... #
0:11:58 > 0:12:02'I'm impressed that John's being sensible having a back-up plan
0:12:02 > 0:12:05'and being so flexible about the project.
0:12:05 > 0:12:08'He's renovated his own homes before, so he's got experience,
0:12:08 > 0:12:12'but this is a big step up from what he's done in the past.
0:12:12 > 0:12:15'He hopes to have it finished in six to nine months.
0:12:15 > 0:12:18'If he doesn't get the planning permission in a couple of months,
0:12:18 > 0:12:21'then he'll put plan B or C into action,
0:12:21 > 0:12:26'spending six to eight weeks on the refurbishment as it is.'
0:12:26 > 0:12:31- Who's going to do the work? - I've got a builder who worked on my previous project.
0:12:31 > 0:12:35He'll be taking on the lion's share, but given the uncertain jobs market,
0:12:35 > 0:12:40- I may end up working on it a bit more myself.- Oh, right! OK!
0:12:40 > 0:12:45The first few houses I did up whilst we were living in them were all hands-on.
0:12:45 > 0:12:47I did all the work myself, give or take.
0:12:47 > 0:12:51So I'm no stranger to renovating properties.
0:12:51 > 0:12:56The idea is to take a step back to free up more time. If necessary, I'll work on it myself.
0:12:56 > 0:12:59- Congratulations.- Thank you. - Good luck with it.
0:12:59 > 0:13:02- I'll look forward to seeing what you do.- Great.
0:13:02 > 0:13:05Well, if John's ideas come to fruition,
0:13:05 > 0:13:09then there'll be a house up to this point when we return.
0:13:09 > 0:13:13Still, there are lots of hoops to jump through before then -
0:13:13 > 0:13:16finances, planners, oh, all sorts of things!
0:13:16 > 0:13:20How will he get on? Will it be garden or property?
0:13:20 > 0:13:22Find out later in the show.
0:13:25 > 0:13:28'Today, I'm in the East End of London,
0:13:28 > 0:13:32'in Bow, the area associated with the term "Cockney".
0:13:32 > 0:13:34'Indeed, to be a true Cockney,
0:13:34 > 0:13:38'tradition goes that you must be born in the sound of the Bow bells.
0:13:38 > 0:13:41'And just a short journey into the centre of the city,
0:13:41 > 0:13:45'it's a place worth having a butchers at.'
0:13:45 > 0:13:51A 15-minute walk from Bow Road Tube station and I'm en route to see today's auction lot.
0:13:51 > 0:13:55It's located in one of these purpose-built blocks of flats.
0:13:55 > 0:13:57And can you Adam and Eve it?
0:13:57 > 0:14:03The two-bedroom maisonette that I'm here to see has a guide price of only £130,000.
0:14:03 > 0:14:06That is a lot of flat for the money in London.
0:14:06 > 0:14:10Our property is located up there on the second floor.
0:14:10 > 0:14:14I'm going to go inside and see what you can buy in Bow.
0:14:14 > 0:14:18'This 1950s block may not be everyone's Gypsy Rose Lee,
0:14:18 > 0:14:23'but it looks well maintained with double glazing and security doors.
0:14:23 > 0:14:26'The two-bed maisonette flat that went to auction
0:14:26 > 0:14:29'came with a healthy 125-year-lease.
0:14:29 > 0:14:37'For 2012 to 2013, the annual service charge was £1,163.'
0:14:37 > 0:14:40This one is certainly security conscious. We've got grilles here.
0:14:40 > 0:14:44There are bars on the window, so that's a good sign.
0:14:44 > 0:14:48A little bit out of breath from all those stairs I just climbed.
0:14:48 > 0:14:51Kitchen, fantastic size, but it's incredibly dated.
0:14:51 > 0:14:54Downstairs loo, which is a bonus.
0:14:54 > 0:14:56Stairs leading up because it's split level.
0:14:56 > 0:15:00What you lack in character - which is a lot - you make up for in space!
0:15:00 > 0:15:03A really good sized room.
0:15:03 > 0:15:06Bit of a negative - not the best view I've seen.
0:15:06 > 0:15:10Something that's a blast from the past. Have a look at this.
0:15:10 > 0:15:13A serving hatch! I love it!
0:15:13 > 0:15:15Well, you've got a great view of the kitchen.
0:15:15 > 0:15:18You might want to think about covering this up.
0:15:18 > 0:15:22# I've seen enough I don't wanna see any more
0:15:22 > 0:15:25# Cover me Come on and cover me... #
0:15:25 > 0:15:27'Some things are beyond recovery.
0:15:27 > 0:15:30'The kitchen units really need replacing
0:15:30 > 0:15:34'and the paintwork and floors could do with a fresh layer
0:15:34 > 0:15:36'to bring them back to life.
0:15:36 > 0:15:40'Cover your eyes now, because this is the downstairs toilet.
0:15:40 > 0:15:44'Upstairs, and the bathroom has a tub but no loo,
0:15:44 > 0:15:46'so that needs to be addressed.
0:15:46 > 0:15:49'The main bedroom is a good size
0:15:49 > 0:15:53'and has decent cupboard space and airing facilities.
0:15:53 > 0:15:56'The second smaller bedroom is perfectly adequate.
0:15:56 > 0:16:00'And while there may be no garden, there IS a balcony.'
0:16:00 > 0:16:03Any kind of outside space is a bonus in London.
0:16:03 > 0:16:07Although it may be small, this balcony provides the opportunity
0:16:07 > 0:16:10to step outside for a bit of fresh air.
0:16:10 > 0:16:14It's a shame there aren't any scenic views, but with a few pot plants
0:16:14 > 0:16:16and perhaps a little table and chairs,
0:16:16 > 0:16:21you could maximise the appeal of this little bonus area.
0:16:21 > 0:16:31# Look at the view from your balcony London through your eyes... #
0:16:31 > 0:16:34'My view of this place is that with a bit of elbow grease,
0:16:34 > 0:16:38'a few bob to spend and some love and care,
0:16:38 > 0:16:42'this tired old girl could easily be transformed into a Pearly Queen.
0:16:42 > 0:16:45'But would it be worth investing the time and money?
0:16:47 > 0:16:52'What can a local estate agent tell us about the maisonette's potential
0:16:52 > 0:16:54'and the area it's located in?'
0:16:56 > 0:17:00The property's situated in a very up-and-coming area, a part of Bow.
0:17:00 > 0:17:03It has access to several forms of public transport
0:17:03 > 0:17:07and there is a lot of rejuvenation going on in the area.
0:17:07 > 0:17:10'So the Bow cash register bells are ringing.
0:17:10 > 0:17:14'What's his advice for making the most of this place?'
0:17:14 > 0:17:21The property does require refurbishment, specifically a new bathroom and a kitchen.
0:17:21 > 0:17:24The bathroom could be redone to accommodate a toilet.
0:17:24 > 0:17:28I would also suggest that the walls need to be stripped down, painted,
0:17:28 > 0:17:32and certainly wood laminate flooring should be introduced.
0:17:32 > 0:17:37'But if this property guided at 130,000 was fully refurbished,
0:17:37 > 0:17:41'what could it be worth on the resale market?'
0:17:42 > 0:17:46Once the property has undergone a certain level of renovation,
0:17:46 > 0:17:49I would imagine it would sell for around £220,000.
0:17:49 > 0:17:52'Mm, encouraging. What about rental?'
0:17:54 > 0:17:58It should go on the market for £1,300 to £1,400 per calendar month.
0:18:00 > 0:18:03Now, it may be a bit of an ugly duckling from the outside,
0:18:03 > 0:18:09but this flat could be a great investment for someone in this up-and-coming area.
0:18:09 > 0:18:12Yes, it does need a bit of modernisation,
0:18:12 > 0:18:15but with its fantastic transport links,
0:18:15 > 0:18:20it could make a convenient and affordable base for a young professional or City worker.
0:18:20 > 0:18:23Let's see who agreed when we went to auction.
0:18:26 > 0:18:29Lot seven is a two-bed maisonette. You're near Bow and Mile End.
0:18:29 > 0:18:32We've got proxy bids sitting down here.
0:18:32 > 0:18:35Who'd like to kick off on this? 100,000?
0:18:35 > 0:18:39100,000 at the back. 105?
0:18:40 > 0:18:42110?
0:18:42 > 0:18:44115? 120?
0:18:44 > 0:18:47125? 130?
0:18:47 > 0:18:49135? 140?
0:18:49 > 0:18:53140, new spot. 145?
0:18:53 > 0:18:55150?
0:18:55 > 0:18:57155?
0:18:57 > 0:18:59160?
0:18:59 > 0:19:02165? 170?
0:19:02 > 0:19:04175?
0:19:04 > 0:19:06180? 180?
0:19:06 > 0:19:09186, try and help?
0:19:09 > 0:19:12186? Just for 1,000.
0:19:12 > 0:19:16186? The whole room, Greg, and you're right next door.
0:19:16 > 0:19:18186? You're bidding, madam?
0:19:18 > 0:19:20186. 187?
0:19:20 > 0:19:23186 with you. Might get it on your first bid.
0:19:23 > 0:19:24187?
0:19:24 > 0:19:27If not, 186. Going to get it on her first bid.
0:19:27 > 0:19:29187?
0:19:29 > 0:19:32186 first time. Second time.
0:19:32 > 0:19:34Third and last time. Have you all done...?
0:19:34 > 0:19:36Sold 186.
0:19:38 > 0:19:43'So, for £186,000, 56,000 over the guide price,
0:19:43 > 0:19:49'that successful single bid was made by Turkish-born chartered accountant Betul.
0:19:49 > 0:19:52'I met her at the two-bed maisonette to hear her plans.'
0:19:54 > 0:19:59- Betul, congratulations. You must be so pleased you got this on auction day.- I am.
0:19:59 > 0:20:03- Was it the price you expected to pay?- No.
0:20:03 > 0:20:06I was expecting 170, 175k at max.
0:20:06 > 0:20:09- So you feel you overpaid for this? - Yeah.
0:20:09 > 0:20:15- Why do you feel this is right for you? - I needed somewhere close to work.
0:20:15 > 0:20:19I work at Canary Wharf. My home is in north London, Woodside Park.
0:20:19 > 0:20:25It takes an hour and 15 minutes for me to travel from my place.
0:20:25 > 0:20:29I needed somewhere to stay close to work.
0:20:29 > 0:20:33I thought this is perfect. It's an upper floor maisonette.
0:20:33 > 0:20:37I'm used to living in a house, rather than a flat.
0:20:37 > 0:20:42There is no garden but it gives me the impression of a house.
0:20:42 > 0:20:44I quite like it. It's a split floor.
0:20:44 > 0:20:47So, have you bought this for yourself to live in?
0:20:47 > 0:20:49Yes.
0:20:49 > 0:20:53- Did you view the property before the auction?- Yeah.- How many times?
0:20:53 > 0:20:56Twice. The first time, I was literally here ten seconds.
0:20:56 > 0:20:59As soon as I walked in, I came out of the door!
0:20:59 > 0:21:03- You didn't like it? - There was a terrible smell.
0:21:03 > 0:21:06When I walked into the living room, it was so disappointing.
0:21:06 > 0:21:10Everything looked extremely daunting.
0:21:10 > 0:21:13Second time round, had you got your head in the right place?
0:21:13 > 0:21:17I actually got my head round to it straight after,
0:21:17 > 0:21:21when I was walking back after the first one.
0:21:21 > 0:21:25In my mind, I imagined that it could be quite nice.
0:21:25 > 0:21:29- When I do it up, it could be quite a nice property.- Yeah.
0:21:29 > 0:21:33I could have seen it. I could have pictured it.
0:21:33 > 0:21:37How well do you know this area of Bow? Did you do much research?
0:21:38 > 0:21:41Er... I don't know the area at all! LAUGHS
0:21:41 > 0:21:43That is a big gamble!
0:21:43 > 0:21:49But when I came the second... yeah, the second time round,
0:21:49 > 0:21:53I did speak to the shopkeepers round the corner.
0:21:53 > 0:21:57There's a couple of shops, a coffee shop and an off licence.
0:21:57 > 0:22:00He's been running the off licence for ten years, I believe,
0:22:00 > 0:22:04and he did assure me it's a very safe area.
0:22:04 > 0:22:09The prices are going up... so I was confident.
0:22:09 > 0:22:13'It's always difficult buying in a location you're not familiar with,
0:22:13 > 0:22:18'though Betul definitely did the sensible thing asking local people.
0:22:18 > 0:22:21'However, she is still taking a step into the unknown.
0:22:21 > 0:22:27'With her work just 15 minutes away, you can understand why the location attracted her.
0:22:27 > 0:22:31'She just has to get the maisonette to match with how she pictured it.'
0:22:31 > 0:22:33What's it going to look like when we come back?
0:22:33 > 0:22:37It will look - keep fingers crossed - all brand new.
0:22:37 > 0:22:39Everything fresh.
0:22:39 > 0:22:44I'm going with colour scheme of white and blue, all modern.
0:22:44 > 0:22:47I actually ordered the furniture already.
0:22:47 > 0:22:52The kitchen, bathroom, everything I have in mind what to do with it.
0:22:52 > 0:22:57- The walls, doors.- Wow! You really are ready to go.- I am.
0:22:57 > 0:23:02- I love that you're so organised. Everything will be brand new?- Yeah.
0:23:02 > 0:23:08- Absolutely everything. - Have you got in place the people you want to work for you?
0:23:08 > 0:23:11Yeah, I have a builder who's been recommended.
0:23:11 > 0:23:15He did give me a quotation. I took him round on Monday.
0:23:15 > 0:23:20He gave me a quotation for 17,700, I believe,
0:23:20 > 0:23:22but we did agree on 15,000.
0:23:22 > 0:23:27- He's going to do all the work for you? Everything for £15,000?- Yeah.
0:23:27 > 0:23:30That's not including any of the units or bathroom suite?
0:23:30 > 0:23:33- It is including everything. - Wow! That's incredible!
0:23:33 > 0:23:36You're going to be choosing them or he's going just to install?
0:23:36 > 0:23:38Kind of together.
0:23:38 > 0:23:45He will let me know what he's buying and that sort of thing and I will decide. Kind of together, yeah.
0:23:45 > 0:23:49- How long is it going to take? - Three weeks.- Wow! Has he promised that as well?
0:23:49 > 0:23:52- Yeah.- £15,000, three weeks, job done!- Yeah.
0:23:52 > 0:23:54- Do you feel confident?- I am.
0:23:54 > 0:23:56Yeah, definitely.
0:23:56 > 0:23:59And are you itching to get in here now?
0:23:59 > 0:24:03I am, actually, because right now I'm staying with my friend.
0:24:03 > 0:24:08- So, yeah, I need my own place. - Betul, congratulations.
0:24:08 > 0:24:15- I cannot wait to see it. It's going to be crisp and white and gleaming and gorgeous!- Thank you so much.
0:24:19 > 0:24:23Betul might have paid more for this flat than she originally intended,
0:24:23 > 0:24:26but she finally has a home that she can call her own.
0:24:26 > 0:24:29And what a great way for her to make a fresh start.
0:24:29 > 0:24:35You can find out whether she sticks to that ambitious three-week timescale later on in the show.
0:24:36 > 0:24:41'Coming up, I find myself in a tight spot at this house in Staffordshire.'
0:24:41 > 0:24:46It all feels very, very cramped and that's not good.
0:24:46 > 0:24:53'Back in London, we see if Betul managed to ring the changes in her Bow maisonette.'
0:24:53 > 0:24:57I wanted a fresh look and I'm very pleased with it.
0:24:57 > 0:25:02'But first, in Liverpool, we say goodbye to the past.'
0:25:02 > 0:25:06This house comprises one-quarter old building, three-quarters new-build.
0:25:10 > 0:25:13'Back now to the Liverpool suburb of Woolton.
0:25:13 > 0:25:17'It's been a popular residential area for hundreds of years.
0:25:17 > 0:25:21'The property we came to see dates back to the mid 19th century.
0:25:21 > 0:25:25'It was bought by John, a transport consultant,
0:25:25 > 0:25:28'who paid £231,000 for it at auction.
0:25:28 > 0:25:31'He already had one buy-to-let property,
0:25:31 > 0:25:35'but planned to sell this cottage after a major refurbishment.'
0:25:35 > 0:25:37We'd like to double the size of it.
0:25:37 > 0:25:42If we could do, we'd split it into two halves and make it into a pair of semi-detached.
0:25:42 > 0:25:46- Talk me through how that would work. - If we extend to make it twice the size,
0:25:46 > 0:25:48we can split it down the middle,
0:25:48 > 0:25:51so each would have an old part and a new part.
0:25:51 > 0:25:56- What's the costs for doing that? Do you have any idea?- About 130,000.
0:25:56 > 0:26:00But that's very tentative, but we have various fall-back options.
0:26:00 > 0:26:02We could extend it as a single dwelling.
0:26:02 > 0:26:07Failing that, we could just renovate the property and I think we'd still make a small return.
0:26:07 > 0:26:11- Right, so you've got a plan A, plan B and plan C?- Absolutely.
0:26:11 > 0:26:13'One year and nine months later,
0:26:13 > 0:26:17'this is what this 150-year-old cottage looks like now.
0:26:23 > 0:26:27'So, there's a significant extension on the side
0:26:27 > 0:26:29'and, oh, just a bit at the back.
0:26:34 > 0:26:36'This contemporary new-build extension
0:26:36 > 0:26:41'has created the two stunning semis for John's plan A.
0:26:46 > 0:26:51'And in the left-hand semi a new kitchen is taking shape.
0:26:51 > 0:26:56'It will flow into the living room and dining area in the extension.'
0:26:58 > 0:27:01So after a long wait, we finally got planning consent for the extension.
0:27:01 > 0:27:03This is the new part.
0:27:03 > 0:27:07This is the original back wall and this is the old part.
0:27:07 > 0:27:11It was really important to keep as much original character of the old building as possible
0:27:11 > 0:27:14whilst creating a contemporary building.
0:27:14 > 0:27:16'I'm loving the look!
0:27:16 > 0:27:19'Liverpool City Council have nominated it
0:27:19 > 0:27:23'for a Best Domestic Extension or Alteration award.
0:27:23 > 0:27:26'You could be walking up the red carpet, John.'
0:27:26 > 0:27:28# I've come for my reward
0:27:29 > 0:27:31# I've come for my reward... #
0:27:32 > 0:27:36'The clever design has transformed the small three-bed cottage
0:27:36 > 0:27:40'into two contemporary semi-detached properties.
0:27:40 > 0:27:43'The wrap-around extension will have four bedrooms.
0:27:43 > 0:27:46'Two are at the front of the original cottage.
0:27:46 > 0:27:48'There's a family bathroom in the middle.
0:27:48 > 0:27:52'Two more bedrooms are at the rear in the new extension.
0:27:52 > 0:27:56'The main bedroom has lovely views over the garden.'
0:27:56 > 0:28:00Here we have the master bedroom with en suite, dual aspect windows.
0:28:00 > 0:28:03It was important to make the most of the natural light.
0:28:04 > 0:28:08'Liaising with the architects and planners took around ten months.
0:28:08 > 0:28:13'Once the plans were approved, the build to date has taken 11 months.
0:28:13 > 0:28:17'The second semi next door is a three-bed.
0:28:17 > 0:28:21'It's not yet at second fix stage.
0:28:21 > 0:28:24'The ground floor layout will be similar to its neighbour,
0:28:24 > 0:28:27'with 50% of it made up from the old cottage.
0:28:27 > 0:28:30'It won't have as much new square footage as the four-bed,
0:28:30 > 0:28:32'as John explains.'
0:28:32 > 0:28:37This house comprises one quarter old building, three quarters new-build.
0:28:37 > 0:28:40The old part contains the kitchen and one bedroom.
0:28:40 > 0:28:43The new part, a further three bedrooms, master bathroom,
0:28:43 > 0:28:46en suite and the open lounge-dining room,
0:28:46 > 0:28:49downstairs toilet and study.
0:28:49 > 0:28:53'These really are going to be two impressive semis.
0:28:53 > 0:28:57'But as if taking on such a massive project wasn't enough,
0:28:57 > 0:29:01'John had some other family matters to contend with.'
0:29:01 > 0:29:05A month into the build our second daughter was born, Grace.
0:29:05 > 0:29:07That was a real challenge.
0:29:07 > 0:29:10It was tricky to juggle the home life and work life,
0:29:10 > 0:29:14but it just meant a lot less sleep than normal.
0:29:14 > 0:29:20'To concentrate fully on it, John gave up his job so he could project manage the work with his dad.'
0:29:20 > 0:29:23We've been renovating houses for about ten years now.
0:29:23 > 0:29:29This was the first opportunity to work full time together, so it's been really good fun.
0:29:29 > 0:29:32'The pair have done most of the building work themselves
0:29:32 > 0:29:36'to keep the costs down, but hired trades people where necessary.
0:29:36 > 0:29:39'John paid his dad a wage to work on the project,
0:29:39 > 0:29:43'but hopes to get his reward from the profit at the end.
0:29:43 > 0:29:46'The four-bed house is ready for second fix.
0:29:46 > 0:29:48'Next door's further behind.
0:29:49 > 0:29:53'The brickwork of the original cottage requires sand blasting.
0:29:53 > 0:29:58'I'm wondering just how accurate was John's tentative £130,000 budget?'
0:29:58 > 0:30:01I think we've spent about £160,000 so far.
0:30:01 > 0:30:05At a guess, I think we'll still need to spend about £50,000 or £60,000.
0:30:05 > 0:30:08'Well, if it does peak out at 220,000,
0:30:08 > 0:30:12'then with the £231,000 he paid at auction,
0:30:12 > 0:30:16'it would take his total investment to £451,000.
0:30:20 > 0:30:23'Time to hear what two local property experts think
0:30:23 > 0:30:28'of this potentially award-winning and radical development project.'
0:30:30 > 0:30:35He's done a great job to create a three-bed and a four-bed house.
0:30:35 > 0:30:39It has a really nice contemporary feel, which is quite a surprise.
0:30:39 > 0:30:45The quality of the work appears to be really good, although it's only at first fix stage.
0:30:45 > 0:30:49I think, once finished, it will have a great look and a great feel to it.
0:30:50 > 0:30:54He's thought it through and taken advice from the architect.
0:30:54 > 0:30:55Both the properties
0:30:55 > 0:31:01have been thought through to be suitable for single occupation or family occupation.
0:31:01 > 0:31:05'Like me, the estate agents are impressed and can picture the finished houses.
0:31:05 > 0:31:07'Will there be a profit?
0:31:07 > 0:31:12'Remember, John will have invested around £451,000 here.'
0:31:12 > 0:31:16I would value the four-bedroom property at £330,000
0:31:16 > 0:31:19and the three-bedroom property at 300,000.
0:31:19 > 0:31:24I would suggest the three-bedroom house to be worth £290,000
0:31:24 > 0:31:27and the four-bedroom house to be worth £310,000.
0:31:27 > 0:31:31'If both houses were sold at those valuations,
0:31:31 > 0:31:35'there'd be a profit of between £149,000 and £179,000
0:31:35 > 0:31:37'before tax and expenses.'
0:31:37 > 0:31:41It's difficult to tell what they'd be worth in their current state,
0:31:41 > 0:31:45but that's broadly in line with what we're hoping for.
0:31:45 > 0:31:49'What about rental? Could the houses provide a good return?'
0:31:49 > 0:31:52The four-bedroom house should fetch £850 per month
0:31:52 > 0:31:56and the three-bedroom house would fetch £800 per month.
0:31:56 > 0:32:00I would look to rent this four-bedroom property at £900 per calendar month,
0:32:00 > 0:32:04and the three-bedroom property at £850 per calendar month.
0:32:04 > 0:32:10'With both houses let, those rents would produce a yield of around 4.5%.'
0:32:10 > 0:32:15If the houses weren't to sell, for whatever reason, it is our fall-back to rent them.
0:32:15 > 0:32:17Those figures are about what we're expecting.
0:32:17 > 0:32:20'I'm impressed that throughout this project,
0:32:20 > 0:32:24'John has kept his options open - very sensible -
0:32:24 > 0:32:28'but he's got one plan he's not going to change.'
0:32:28 > 0:32:31I'm really looking forward to spending some time
0:32:31 > 0:32:36with my two girls and my wife after such a long hard project.
0:32:40 > 0:32:45'I'm near Stoke-on-Trent, home of the ceramics industry
0:32:45 > 0:32:48'since the 17th century.
0:32:48 > 0:32:54'Names like Wedgwood, Royal Doulton and Spode were all created here.
0:32:54 > 0:32:57'Now from pottery to property
0:32:57 > 0:33:00'and to one I'm, well, potty about.
0:33:00 > 0:33:04'It's a classic Victorian terrace just north of Stoke-on-Trent.'
0:33:04 > 0:33:10I'm in the village of Packmoor, here to see a very traditional type property for the area.
0:33:10 > 0:33:12It's a two-bedroom mid-terrace.
0:33:12 > 0:33:15Had a guide price of £40,000.
0:33:15 > 0:33:19Nice brick-built exterior. Let's take a look inside.
0:33:23 > 0:33:27'The village of Packmoor is about four miles from Stoke-on-Trent.
0:33:27 > 0:33:29'It offers affordable housing
0:33:29 > 0:33:32'with good commutable links into the city centre.'
0:33:32 > 0:33:35So, very traditional layout.
0:33:35 > 0:33:38Straight through the front door into your lounge.
0:33:38 > 0:33:41Um, first impressions? Not too bad.
0:33:41 > 0:33:45- CHUCKLING:- Through into your rear living area.
0:33:45 > 0:33:49Obviously, somebody has started working here.
0:33:49 > 0:33:53The layout continuing through here into the kitchen area.
0:33:53 > 0:33:57It's exactly as you might have expected.
0:33:57 > 0:33:59Definitely in need of some work.
0:33:59 > 0:34:02The thing that worries me most, though,
0:34:02 > 0:34:06is the very traditional, again, position for the loo.
0:34:06 > 0:34:09But it seems... Ooh!
0:34:09 > 0:34:12Ooh, crikey! Ow! There's a very nasty step for a start.
0:34:12 > 0:34:15All there is, no bath, just a shower.
0:34:15 > 0:34:19It all feels very, very cramped, and that's not good.
0:34:20 > 0:34:25'Ugh! Imagine coming out of the shower in your towel at the same time as someone else in the loo
0:34:25 > 0:34:30'and you both have to shuffle past the person cooking in the kitchen.
0:34:30 > 0:34:33'Not family friendly and definitely awkward.
0:34:33 > 0:34:38'This is not compact - it's claustrophobic.'
0:34:43 > 0:34:48'I'm not so sure the tiled floor would keep my tootsies warm, either.
0:34:48 > 0:34:51'That's one period feature I'd happily say goodbye to,
0:34:51 > 0:34:55'although it is a shame that the fireplace has been ripped out.'
0:34:59 > 0:35:03Upstairs, exactly what you might expect - two good-sized bedrooms.
0:35:03 > 0:35:08That throws up the question of whether you move the bathroom up here.
0:35:08 > 0:35:10It's the age-old question with these properties.
0:35:10 > 0:35:13The bedroom is certainly big enough.
0:35:13 > 0:35:16You could think about moving the stairs by 90 degrees,
0:35:16 > 0:35:21over to that side, that would give you even more space up here.
0:35:21 > 0:35:24You could steal some space from this bedroom
0:35:24 > 0:35:26to create some kind of upstairs bathroom.
0:35:26 > 0:35:30It all comes down to cost and what you plan to use the house for.
0:35:30 > 0:35:33If you plan to live here, if it's important, it may be worth doing.
0:35:33 > 0:35:37In terms of renting this place out, talk to the estate agents,
0:35:37 > 0:35:42find out if it really makes any difference and use that to make your decision.
0:35:42 > 0:35:46Another possible decision to make could be outside.
0:35:48 > 0:35:50You currently can't get out the back door.
0:35:50 > 0:35:54You have to come down a little alleyway to the rear.
0:35:54 > 0:35:58You do find, when you get here, something worth discovering.
0:35:58 > 0:36:02This little courtyard. That's the kitchen, and I love this bit.
0:36:02 > 0:36:04What it gives is the option
0:36:04 > 0:36:08for a much-needed extension to that kitchen and bathroom area.
0:36:08 > 0:36:12It's what neighbouring properties have done and what you need to do.
0:36:12 > 0:36:17It's not complicated. Raise the roof slightly, bring it out this way.
0:36:17 > 0:36:23You wouldn't need planning permission, then you'd get that extra space - fantastic!
0:36:25 > 0:36:27'It's the approach I would favour,
0:36:27 > 0:36:32'but it does add to your renovation time and your initial outlay.
0:36:36 > 0:36:39'We invited a local estate agent to give us his opinion
0:36:39 > 0:36:41'on this property
0:36:41 > 0:36:44'that had a guide price of £40,000.'
0:36:44 > 0:36:48The positives are two great sized bedrooms upstairs
0:36:48 > 0:36:50and two excellent reception rooms.
0:36:50 > 0:36:53There's excellent potential to extend the property,
0:36:53 > 0:36:57do a first-floor extension to create room for a bathroom upstairs.
0:36:57 > 0:37:01'There are a lot of possibilities with this two-up, two-down,
0:37:01 > 0:37:04'but most of them are expensive. Would it be worth it?
0:37:04 > 0:37:07'What kind of resale value could the house achieve?'
0:37:07 > 0:37:11If the property was to be renovated to a reasonable standard,
0:37:11 > 0:37:15you'd expect to achieve a figure of somewhere in the region of £75,000.
0:37:15 > 0:37:19If the property was to be extended to offer a bathroom upstairs,
0:37:19 > 0:37:23you would expect to achieve a figure in the region of £80,000.
0:37:23 > 0:37:29'I'm not so sure the financial rewards are worth the investment of a two-storey extension.
0:37:29 > 0:37:32'Maybe it would work better as a rental.'
0:37:32 > 0:37:34Renovated to a reasonable standard,
0:37:34 > 0:37:38you'd expect a rental in the region of £400 per calendar month.
0:37:38 > 0:37:42If the property was to be extended to create a first-floor bathroom,
0:37:42 > 0:37:47it wouldn't make much difference, it would still be up to £400 per calendar month.
0:37:47 > 0:37:51I think simplicity will be the key to this renovation.
0:37:52 > 0:37:55It's a good solid little property
0:37:55 > 0:37:57and it'll become either a nice place to live
0:37:57 > 0:38:00or a good little rental earner.
0:38:00 > 0:38:02Let's see who bought it when it went under the hammer.
0:38:04 > 0:38:08Lot 98 is a two-bedroom terraced house.
0:38:08 > 0:38:10Does need refurbishment.
0:38:10 > 0:38:1340,000 start me here? 40,000?
0:38:13 > 0:38:1535, then?
0:38:16 > 0:38:20Lot 98. 35 bid, thank you. At £35,000.
0:38:20 > 0:38:2440 can I say now? At £35,000.
0:38:24 > 0:38:28I'll go in twos. Can we say 37? At 35... 37.
0:38:28 > 0:38:3139? £39,000.
0:38:31 > 0:38:3341?
0:38:33 > 0:38:36At £39,000. Make it 40, then.
0:38:37 > 0:38:41£40,000. At 40. 40,000. 41.
0:38:41 > 0:38:4442? 42. At £42,000.
0:38:44 > 0:38:4643?
0:38:47 > 0:38:49No. At £42,000, then.
0:38:49 > 0:38:5343 anywhere else? £43,000. At 43.
0:38:53 > 0:38:5544?
0:38:56 > 0:38:59£44,000. 45?
0:38:59 > 0:39:02No. At £44,000.
0:39:02 > 0:39:06Are we all done? At £44,000.
0:39:06 > 0:39:10Half, you're saying? Back in at 44 and a half. 45?
0:39:11 > 0:39:14At £44,500, then. Are we all done?
0:39:14 > 0:39:1645 anywhere else?
0:39:16 > 0:39:20At 44,500 for the first time.
0:39:20 > 0:39:24At 44,500 for the second time.
0:39:24 > 0:39:27For the third and final time at £44,500...
0:39:27 > 0:39:29It's not quite enough.
0:39:29 > 0:39:35'The hammer failed to fall, but after the auction, a deal was done for £43,000 -
0:39:35 > 0:39:38'£2,000 less than the guide price.
0:39:39 > 0:39:44'The new owners of this two-bedroom terrace are Chris and her son Ben.
0:39:44 > 0:39:47'Chris and Ben already own two other properties.
0:39:47 > 0:39:52'I met them at their latest acquisition to find out more.'
0:39:54 > 0:39:57- Chris, Ben, great to meet you. Congratulations.- Thank you.
0:39:57 > 0:40:03- Tell me why you wanted to buy this place.- Hopefully, trying to do it up and make a bit of a profit.
0:40:03 > 0:40:06OK, great. Chris, is it a family business?
0:40:06 > 0:40:11My husband, Pete, is a builder and he helps us out, doesn't he?
0:40:11 > 0:40:16- He does, yeah.- I do most of the sweeping up and going to the tip!
0:40:16 > 0:40:20We're coming to pensionable age, but money's not doing anything in the banks
0:40:20 > 0:40:24so we're putting it into property and hoping it'll make more money.
0:40:24 > 0:40:29'This family formula seems to be a winner with their other two properties rented out.
0:40:29 > 0:40:35'Mum and Dad are investing for a pension, while Ben, who runs his own IT business,
0:40:35 > 0:40:40'can use the income to tide him over when there's a lull in business.
0:40:40 > 0:40:45'I was curious about the auction, as they didn't get it with their final bid.'
0:40:45 > 0:40:50Third and final time at £44,500... It's just not quite enough.
0:40:50 > 0:40:53You didn't actually get it in the auction. What happened?
0:40:53 > 0:41:00We bid up to 43,000 for it, but the reserve price was actually 45.
0:41:00 > 0:41:04- Luckily, the guy who actually owns the house was there.- Oh.
0:41:04 > 0:41:08- He said that we could have it for 43.- Right.- It was signed afterwards.
0:41:08 > 0:41:14- That was negotiated afterwards? Lucky he was there.- It was, yeah.
0:41:14 > 0:41:19'You can't be shy in coming forward and as the old adage goes,
0:41:19 > 0:41:21'if you don't ask, you don't get.
0:41:21 > 0:41:25'Chris and Ben may have bagged themselves a bargain.'
0:41:25 > 0:41:28# If there's something you'd like to try
0:41:28 > 0:41:30# Ask me I won't say no
0:41:30 > 0:41:32# How could I...? #
0:41:33 > 0:41:37- How is it working as a family on these projects?- It's OK, isn't it?
0:41:37 > 0:41:41- Yeah, it's fine. We usually get on most of the time.- Yes.
0:41:41 > 0:41:44A few minor little scuffles. MARTIN LAUGHS
0:41:44 > 0:41:47- It's not come to blows yet.- No, no!
0:41:47 > 0:41:49Is it a joint family venture, financially?
0:41:49 > 0:41:52Er, yes. We've gone halves on the property.
0:41:52 > 0:41:56- Tell me what you're going to do to sort it out?- It needs a new kitchen.
0:41:56 > 0:42:02Bathroom sorting out - there isn't a specific bathroom at the moment.
0:42:02 > 0:42:06We need to sort that out. Probably going to plaster throughout.
0:42:08 > 0:42:12Put new carpets in. Needs a new boiler as well.
0:42:12 > 0:42:17How much work will you do yourself, Chris, or how much will you get people in?
0:42:17 > 0:42:23We'll have to get a CORGI registered for the gas and an electrician.
0:42:23 > 0:42:27Pretty much everything else, husband and Ben will be doing between them.
0:42:27 > 0:42:30- Right. And you'll be supervising? - Oh, yes.
0:42:30 > 0:42:33- I'll make the sandwiches and tea. - LAUGHTER
0:42:33 > 0:42:37# When the clock strikes four Everything stops for tea... #
0:42:37 > 0:42:40'Well, crossing the Is and the Ts,
0:42:40 > 0:42:44'we should say CORGI registered engineers, as they were known,
0:42:44 > 0:42:47'are now Gas Safe engineers.
0:42:47 > 0:42:52'Chris and Ben have a budget of between £7,000 and £8,000
0:42:52 > 0:42:55'and hope to complete the renovation in six months,
0:42:55 > 0:42:58'as the work will mainly be done at weekends.
0:42:58 > 0:43:03'That six-month schedule also includes plenty of time for tea breaks.
0:43:03 > 0:43:07'Although Chris and Ben have let their other properties,
0:43:07 > 0:43:10'they intend to sell this one on.'
0:43:10 > 0:43:15- You paid 43 for it and you're hoping to spend six or seven, so around £50,000 plus costs.- Yes.
0:43:15 > 0:43:21- What are you hoping you might sell it for?- We've seen a few in the street going for 60 to 64.
0:43:21 > 0:43:25Hopefully, they might creep up a bit, somewhere around the 65 mark.
0:43:25 > 0:43:29From the other things you've bought, is it a good one?
0:43:29 > 0:43:34Yes. The last one was a three-bed terrace with three reception rooms
0:43:34 > 0:43:37and it was far too big a project to go into.
0:43:37 > 0:43:42We kept finding jobs that needed to be done before we could do the job you wanted to do.
0:43:42 > 0:43:46Hopefully, there won't be too many of those this time.
0:43:46 > 0:43:49- Congratulations. Good luck. - Thank you very much.
0:43:49 > 0:43:52- I look forward to seeing how you get on.- Thank you.
0:43:54 > 0:44:00So, Chris and Ben adding a very solid property to their portfolio.
0:44:00 > 0:44:03Not too much to unearth on this one,
0:44:03 > 0:44:05you wouldn't have thought, but you never know.
0:44:05 > 0:44:08Find out how they get on later in the show.
0:44:11 > 0:44:13When you've bought your property,
0:44:13 > 0:44:17be prepared for some hard work and some surprises along the way -
0:44:17 > 0:44:19some welcome, some not so much.
0:44:19 > 0:44:24So have our buyers uncovered hidden treasures or unearthed...
0:44:24 > 0:44:28- CHUCKLES - ..hidden problems? Let's go back and find out.
0:44:30 > 0:44:32'It was in the London borough of Bow
0:44:32 > 0:44:36'that we came across this two-bedroom split-level maisonette.
0:44:36 > 0:44:39'Situated in this 1950s block,
0:44:39 > 0:44:42'although a little tired, it had a decent layout.
0:44:42 > 0:44:47'There was a kitchen, lounge and a neglected toilet on one floor.
0:44:47 > 0:44:52'Then upstairs, two bedrooms - one good-sized double
0:44:52 > 0:44:54'and one somewhat smaller room.
0:44:54 > 0:44:56'Then there was the bathroom.
0:44:56 > 0:45:01'Although a reasonable size, strangely, it had no loo.
0:45:02 > 0:45:07'It was bought by Turkish-born chartered accountant Betul
0:45:07 > 0:45:10'as her new home, despite some initial reservations.'
0:45:14 > 0:45:18- Did you view the property before the auction?- Yeah.- How many times?
0:45:18 > 0:45:21Twice. On the first time, I was literally here ten seconds.
0:45:21 > 0:45:25As soon as I walked in, I came out of the door!
0:45:25 > 0:45:28- You didn't like it? - There was a terrible smell.
0:45:28 > 0:45:32When I walked into the living room, it was so disappointing.
0:45:32 > 0:45:35Everything looked extremely daunting.
0:45:35 > 0:45:38'After returning a second time,
0:45:38 > 0:45:42'Betul felt that, in fact, she could make something of this maisonette.
0:45:42 > 0:45:45'So she paid 186,000 at auction
0:45:45 > 0:45:48'and hoped that on a budget of 15,000
0:45:48 > 0:45:50'and a timescale of just three weeks
0:45:50 > 0:45:54'she could make her new home ready to move into.
0:45:59 > 0:46:03'Just over 11 weeks later, we're back to see how she got on.'
0:46:11 > 0:46:15'First impressions are now certainly more favourable,
0:46:15 > 0:46:17'with the lounge modern and sleek.'
0:46:17 > 0:46:21It's a total refurbishment, literally going through everything.
0:46:21 > 0:46:23Everything has been touched and redone.
0:46:24 > 0:46:27'And the kitchen?
0:46:27 > 0:46:30'Well, that's now bang up to date.
0:46:33 > 0:46:37'Remember that serving hatch? Well, that's gone, too.
0:46:37 > 0:46:41'And with the dilapidated cloakroom completely overhauled,
0:46:41 > 0:46:45'this floor is looking the business, but what about the upper floor?
0:46:45 > 0:46:49'Has Betul managed to find room in the bathroom for a loo?
0:46:51 > 0:46:54'She sure has!'
0:46:55 > 0:46:59The bathroom is my favourite place. I changed the place for the bath.
0:46:59 > 0:47:02I put a new toilet in,
0:47:02 > 0:47:06the wash basin and lovely illuminated mirrors.
0:47:06 > 0:47:08I picked the tiles.
0:47:08 > 0:47:11I wanted these blue mosaic tiles
0:47:11 > 0:47:16because they are very Turkish looking and I'm from Turkey.
0:47:16 > 0:47:21And overall, I wanted a fresh look and I'm very pleased with it.
0:47:23 > 0:47:27'With the two bedrooms finished to an equally high standard,
0:47:27 > 0:47:32'it seems it WAS worth her having a second look, but did it go to plan?'
0:47:34 > 0:47:37I moved in a few weeks ago.
0:47:37 > 0:47:40However, the builders left two days ago.
0:47:40 > 0:47:44So I'm really pleased with it when I come home from work.
0:47:44 > 0:47:49Last couple of days have been very busy. It was very tiring.
0:47:49 > 0:47:53A number of challenges - especially around the builders.
0:47:53 > 0:47:58Well, only around the builders, really, because working full time,
0:47:58 > 0:48:03not being able to be here all the time, it was hard.
0:48:03 > 0:48:07'In fact, Betul had to find a second set of builders
0:48:07 > 0:48:10'after her first one let her down.
0:48:10 > 0:48:13'That delayed the process and stretched the timescale
0:48:13 > 0:48:17'from the planned three weeks to the 11 weeks we're at now.
0:48:17 > 0:48:20'Did that also cause her £15,000 budget to grow?'
0:48:22 > 0:48:27I spent 16 grand, slightly over the budget, for labour and materials.
0:48:27 > 0:48:30But overall, I'm pleased with it
0:48:30 > 0:48:34because I sourced high-quality materials
0:48:34 > 0:48:37and got high-quality finish.
0:48:39 > 0:48:44'A £16,000 spend on top of her £186,000 purchase price
0:48:44 > 0:48:50'will take her total outlay to 202,000 before tax and fees.
0:48:50 > 0:48:54'So, did going for a higher quality finish pay off?
0:48:54 > 0:48:57'What do two local estate agents reckon?'
0:48:58 > 0:49:04I think the flat has gotten amazing improvements done to it.
0:49:04 > 0:49:06It shows really, really nice.
0:49:06 > 0:49:09A lot of work has been put into it,
0:49:09 > 0:49:14but it still retains a neutral aspect, which will certainly appeal
0:49:14 > 0:49:17to people that would look to either buy or rent to live in it.
0:49:17 > 0:49:20It's been done to a good standard.
0:49:20 > 0:49:23There's only so much you can do with these properties,
0:49:23 > 0:49:27being ex Local Authority, but the owner's done it to a reasonable standard.
0:49:28 > 0:49:32'There have certainly been impressive changes made here,
0:49:32 > 0:49:35'but how much has that changed the value of this maisonette,
0:49:35 > 0:49:39'on which Betul has spent 202,000?'
0:49:39 > 0:49:44We would look to market the property between £230,000 and £240,000,
0:49:44 > 0:49:47and hope to achieve offers very close to that.
0:49:47 > 0:49:53In regards to resale value, I'd put a valuation on this property of between £220,000 and £230,000.
0:49:53 > 0:49:56I guess they're average numbers.
0:49:56 > 0:50:02Because I'm not thinking of selling, you know...it doesn't mean much!
0:50:04 > 0:50:07'Well, those kind of valuations could see a pre-tax profit
0:50:07 > 0:50:10'of between 18,000 and 38,000.
0:50:10 > 0:50:13'How would it fare on the rental market?'
0:50:13 > 0:50:17The flat would rent at around £1,400 per calendar month,
0:50:17 > 0:50:19as it presents very nicely.
0:50:19 > 0:50:24I would estimate that this property would get around £1,300 per calendar month.
0:50:24 > 0:50:29'Even £1,300 per calendar month would generate an annual yield
0:50:29 > 0:50:32'of just under 8%.
0:50:32 > 0:50:36'So, this property purchase has worked out well for Betul.
0:50:36 > 0:50:38'And with it finished,
0:50:38 > 0:50:42'she can now look forward to living in her new home.'
0:50:43 > 0:50:46I have my friends coming round tonight.
0:50:46 > 0:50:49We are going to have some drinks, have something to eat
0:50:49 > 0:50:52and enjoy ourselves.
0:50:57 > 0:51:00'Let's take a trip back to this terrace in Packmoor,
0:51:00 > 0:51:04'near Stoke-on-Trent, which had a guide price of £40,000.
0:51:04 > 0:51:10'It was snapped up by IT technician Ben and his mum, Chris, for £43,000.
0:51:10 > 0:51:13'While they thought they'd bagged a bargain,
0:51:13 > 0:51:18'I wondered if they'd maybe got more than they'd bargained for.
0:51:18 > 0:51:24'The property was in a right old mess and in dire need of not only a cosmetic refurbishment,
0:51:24 > 0:51:27'but also a little layout jiggery pokery
0:51:27 > 0:51:30'to reconfigure the warren of rooms at the back
0:51:30 > 0:51:35'that made up the kitchen, shower room and loo.
0:51:35 > 0:51:38'But Ben and Chris had help at hand.
0:51:38 > 0:51:42'Chris's husband and Ben's dad, Pete, is a builder.'
0:51:44 > 0:51:48- How is it working as a family on these projects?- It's OK.
0:51:48 > 0:51:52- Yeah, it's fine. We usually get on most of the time.- Yes.
0:51:52 > 0:51:55Just a few minor little scuffles. MARTIN LAUGHS
0:51:55 > 0:51:58- It's not come to blows yet.- No!
0:51:59 > 0:52:03'I hope there were no fallings out while doing up this property
0:52:03 > 0:52:05'and arguments were kept to a minimum.
0:52:05 > 0:52:08'Eight months later and we're back.
0:52:08 > 0:52:13'I wonder if we'll find a happy, rather than a snappy family.'
0:52:14 > 0:52:18# So happy together... #
0:52:37 > 0:52:41'The terrace has been transformed and is now warm and welcoming,
0:52:41 > 0:52:43'rather than dark and dingy.
0:52:43 > 0:52:48'But are the family still friends? Let's hear from Dad, Pete.'
0:52:49 > 0:52:52I think we've got on pretty well, really.
0:52:52 > 0:52:56We do have the ups and downs, but we get by with it
0:52:56 > 0:53:00- and on the whole, we make a good team, I think.- Yeah.
0:53:01 > 0:53:04'I'm happy to hear that, but I wonder,
0:53:04 > 0:53:06'have they learnt anything new about each other
0:53:06 > 0:53:09'while working, it would seem, happily together?'
0:53:11 > 0:53:14- Pete's got a short fuse! - ALL LAUGH
0:53:14 > 0:53:17- Thank you(!) - But I've known that for a long time.
0:53:17 > 0:53:20- And Ben's a miserable devil! - LAUGHTER
0:53:20 > 0:53:23- Not always.- No. We're all right.
0:53:23 > 0:53:25And I have a lot to put up with.
0:53:25 > 0:53:31# Happy together For ever and ever we'll be... #
0:53:33 > 0:53:36'The kitchen is still at the back, which is far from ideal,
0:53:36 > 0:53:41'but it does now lead to a bigger bathroom with an actual bath in it.
0:53:41 > 0:53:45'However, the family decided it wasn't financially viable to extend
0:53:45 > 0:53:48'or to create a bathroom upstairs.
0:53:48 > 0:53:51'But they have cleverly maximised the space available,
0:53:51 > 0:53:55'and it's certainly a vast improvement.'
0:53:55 > 0:53:59When we first got here, there was a separate shower and toilet.
0:53:59 > 0:54:03We've knocked the walls down to create a small L-shaped bathroom,
0:54:03 > 0:54:05so you can actually get a bath fitted in.
0:54:05 > 0:54:09And in the kitchen, we bricked the back door up
0:54:09 > 0:54:11so we could create a space for the cooker.
0:54:11 > 0:54:14We've managed to fit down both sides of the kitchen
0:54:14 > 0:54:17with smaller units on one side.
0:54:17 > 0:54:21'It's a tight fit, but I like Ben's idea
0:54:21 > 0:54:24'of reducing the depth of the kitchen cabinets.
0:54:24 > 0:54:28'Best of all was moving the back door to the rear reception room.'
0:54:28 > 0:54:33I think it's made quite a good addition to the room, brings quite a bit of light in as well.
0:54:33 > 0:54:37'Ben and his mum and dad
0:54:37 > 0:54:40'have carried out the majority of the work by themselves.
0:54:40 > 0:54:43'Ben took the lead, fitting the kitchen units, flooring
0:54:43 > 0:54:46'and skirting, architrave and doors.
0:54:46 > 0:54:48'They hired qualified tradesmen
0:54:48 > 0:54:52'only for the fitting of a new boiler and electrical work.
0:54:52 > 0:54:55'Ben also challenged himself by taking on a new skill,
0:54:55 > 0:54:58'plastering all the internal walls,
0:54:58 > 0:55:01'and I think he's achieved a smooth finish.
0:55:01 > 0:55:04'So, how much has the renovation cost?'
0:55:04 > 0:55:07We spent about £7,500.
0:55:07 > 0:55:11That's with all the materials and legal costs,
0:55:11 > 0:55:13which isn't too bad, really.
0:55:14 > 0:55:16'Added to the purchase price of 43,000,
0:55:16 > 0:55:20'that gives the family a total outlay of 50,500.
0:55:20 > 0:55:22'What about the timescale?
0:55:22 > 0:55:25'Working on the property mainly at weekends,
0:55:25 > 0:55:29'they had hoped to have the renovation complete in five months,
0:55:29 > 0:55:32'but there's still work to be done in the back yard.
0:55:32 > 0:55:34'However, this hasn't stopped them
0:55:34 > 0:55:38'from lining up a tenant for this terrace.'
0:55:38 > 0:55:42We thought about selling but the market isn't fantastic.
0:55:42 > 0:55:48We have found a tenant who's ready to move in more or less straight away,
0:55:48 > 0:55:52so we're going to rent it for a while and see how the market goes.
0:55:54 > 0:55:58'We invited two local property experts to give us their opinion
0:55:58 > 0:56:03'on the terrace house on which this family have spent £50,500 so far.'
0:56:05 > 0:56:07What makes this property stand out
0:56:07 > 0:56:11is a nice double-glazed door on the rear reception room.
0:56:11 > 0:56:14On a typical terrace, you've got a small window.
0:56:14 > 0:56:16That will appeal to buyers.
0:56:16 > 0:56:19I would suggest that the owners extend the property
0:56:19 > 0:56:21to create a larger bathroom.
0:56:21 > 0:56:25I feel that people wanting to buy the property would favour that.
0:56:25 > 0:56:31'Bearing in mind that Ben and his parents' investment was 50,500,
0:56:31 > 0:56:35'how much do the estate agents think this property could sell for?'
0:56:35 > 0:56:39I'd put this property on the market for sale for £70,000.
0:56:39 > 0:56:44If I were to put the property on the market today, the price would be £70,000.
0:56:44 > 0:56:47Ooh, very nice! That's lovely, that is.
0:56:47 > 0:56:50- Yes.- It's pretty much what I was thinking.
0:56:50 > 0:56:53I'm pleased with it.
0:56:53 > 0:56:57It's not bad for a few months' work. ALL LAUGH
0:56:57 > 0:57:00'At last, they've agreed on something.
0:57:00 > 0:57:03'But the terrace was destined for the rental market
0:57:03 > 0:57:07'so how much could the family ask for that?'
0:57:07 > 0:57:10I'd put this up for rent for £400 per calendar month.
0:57:10 > 0:57:16If the owners put the property on the market for rent, I would suggest a rent of £400 per calendar month.
0:57:16 > 0:57:21- That's exactly what we've got. - That's what we're getting, yeah.
0:57:21 > 0:57:24'£400 per calendar month gives them
0:57:24 > 0:57:29'a respectable rental yield of around 9.5%.
0:57:32 > 0:57:36'This renovation has been a fantastic team effort
0:57:36 > 0:57:39'by Ben and his mum and dad, Chris and Pete.
0:57:39 > 0:57:43'All their hard work has earned them their financial reward.
0:57:43 > 0:57:46'Will they return to buy at another auction?'
0:57:46 > 0:57:50- Oh, yeah.- Definitely.- Yes. We'll do another one, but not yet.
0:57:50 > 0:57:54- As long as they keep paying! - ALL LAUGH
0:57:57 > 0:58:01That's it for now. We hope you've enjoyed Homes Under The Hammer.
0:58:01 > 0:58:06- We'll see you next time, when we hear more fascinating stories from the auction room.- Goodbye.