0:00:02 > 0:00:03The weather's not too bad today,
0:00:03 > 0:00:06but can you tell the temperature of the property market?
0:00:06 > 0:00:10Sometimes it's difficult to judge whether it's blowing hot or cold.
0:00:10 > 0:00:14One way to suss it out is to visit your local auction house.
0:00:39 > 0:00:42When you go to an auction, you can tell if there's confidence in the room
0:00:42 > 0:00:45or if everyone's playing a cautious game.
0:00:45 > 0:00:48Yes. It's a real barometer of the property market.
0:00:48 > 0:00:49So let's see how the land lies
0:00:49 > 0:00:52with the properties that went to auction on today's show.
0:00:54 > 0:00:57In Callington, Cornwall, there's no question about it,
0:00:57 > 0:00:59this cottage needs work.
0:00:59 > 0:01:02It's never going to be easy with a house like this.
0:01:03 > 0:01:07This 1930s Shepherd's Bush flat has me floored.
0:01:07 > 0:01:10It's really, really in good nick.
0:01:10 > 0:01:13That, to me, just stands out.
0:01:14 > 0:01:16And in Denton, Manchester,
0:01:16 > 0:01:19this former jeweller's shop may have lost its sparkle.
0:01:19 > 0:01:21What you have got here, which I really do like,
0:01:21 > 0:01:23is flexibility and options.
0:01:24 > 0:01:27All of these properties went to auction.
0:01:27 > 0:01:30We'll find out who bought them and what they paid for them
0:01:30 > 0:01:32when they went under the hammer.
0:01:32 > 0:01:34Congratulations.
0:01:37 > 0:01:43# California dreaming on such a winter's day... #
0:01:46 > 0:01:48On a damp and dreary day like today,
0:01:48 > 0:01:52you can be forgiven for longing for some West Coast sunshine.
0:01:52 > 0:01:55But this just ain't California, I'm afraid.
0:01:55 > 0:01:59It's Callington in Cornwall, within striking distance of Plymouth
0:01:59 > 0:02:01and the Dartmoor National Park.
0:02:03 > 0:02:05So, what am I here to see? Well, it's a little cottage.
0:02:05 > 0:02:07Double storey, double bedrooms
0:02:07 > 0:02:10and I had to do a bit of a double take when I saw the guide price.
0:02:10 > 0:02:13£40,000-£60,000.
0:02:13 > 0:02:14Oooh!
0:02:15 > 0:02:18Well, first thing to note, no parking,
0:02:18 > 0:02:19which is a bit of a disadvantage.
0:02:19 > 0:02:23Through the front door, off the little courtyard area there,
0:02:23 > 0:02:25into your front sitting room.
0:02:25 > 0:02:27Fairly low ceilings,
0:02:27 > 0:02:29so it feels a bit claustrophobic as you walk through the door,
0:02:29 > 0:02:33but it's nice to see that traditional stone, open fire there.
0:02:33 > 0:02:34So that's quite nice.
0:02:34 > 0:02:37And you're going to have to look through the current state
0:02:37 > 0:02:41because it's all a bit dark and browns and stains and things.
0:02:41 > 0:02:43But you have to see through that.
0:02:43 > 0:02:45So not a bad start.
0:02:48 > 0:02:50Through to the kitchen.
0:02:50 > 0:02:52Again, you need to see through the current state.
0:02:52 > 0:02:54Great looking over towards that window.
0:02:54 > 0:02:57Look at the thickness of those walls.
0:02:57 > 0:03:02That also means you're probably going to be into damp issues
0:03:02 > 0:03:04because I doubt there's a damp-proof course in the floor,
0:03:04 > 0:03:08I doubt the walls have got any kind of damp-proof cavity,
0:03:08 > 0:03:10so something to bear in mind.
0:03:10 > 0:03:11But let's carry on.
0:03:14 > 0:03:18In addition to the kitchen and sitting room on the ground floor,
0:03:18 > 0:03:22there's the bathroom and a funny kind of lean-to utility room thing
0:03:22 > 0:03:25with access to the backyard.
0:03:25 > 0:03:30Now, both that backyard and utility area need a bit of work for sure.
0:03:32 > 0:03:35At the front, the property sits right on the road
0:03:35 > 0:03:38and the rendering's dirty from the traffic.
0:03:38 > 0:03:42I would want to check that it's sound and doesn't need repairing.
0:03:44 > 0:03:48Upstairs, there are two bedrooms, neither of which is huge.
0:03:48 > 0:03:50But I think if you're really clever,
0:03:50 > 0:03:53you could squeeze the bathroom in upstairs
0:03:53 > 0:03:55and free up some space on the ground floor.
0:03:57 > 0:04:01So, what does the auctioneer who sold the property
0:04:01 > 0:04:04see as the way forward for this Callington cottage
0:04:04 > 0:04:08with its guide price of £40,000-£60,000?
0:04:08 > 0:04:12By moving the bathroom upstairs, the saleability factor would go upwards.
0:04:12 > 0:04:14People like the conventional layout
0:04:14 > 0:04:16and being able to go from a bedroom to a bathroom.
0:04:16 > 0:04:19But actually, the cost of doing it may not actually be worthwhile.
0:04:19 > 0:04:21Fair enough.
0:04:21 > 0:04:26But once done up, what kind of rental income might you expect?
0:04:26 > 0:04:28For the rental market,
0:04:28 > 0:04:31you could probably achieve probably £500 per calendar month.
0:04:32 > 0:04:36What about selling the property once it's finished?
0:04:37 > 0:04:39If you're placing the property on the open market once refurbed,
0:04:39 > 0:04:44I expect it would fetch somewhere in the region of £100,000-£110,000.
0:04:44 > 0:04:47Well, it's in a good location in a friendly village,
0:04:47 > 0:04:52but there is one heck of a lot of work to do to sort this place out.
0:04:52 > 0:04:54You almost want to take all the internal walls down
0:04:54 > 0:04:57and start again because everything's sort of in the wrong place
0:04:57 > 0:05:01and it just feels like there's a lot of work to be done.
0:05:01 > 0:05:04Let's see who fancied a challenge taking this one on
0:05:04 > 0:05:06when it went under the hammer.
0:05:06 > 0:05:11This property was one of the last auction lots of the day.
0:05:11 > 0:05:13It's a two-bed, end-of-terrace cottage.
0:05:13 > 0:05:16Who's going to kick us off at 50? Straight in at 50.
0:05:16 > 0:05:18I'm asking for 50. I look around the room for 50.
0:05:20 > 0:05:22OK, bottom end of the guide at 40. 40, you're away, at 40.
0:05:22 > 0:05:2542. 42.
0:05:25 > 0:05:26At 43.
0:05:26 > 0:05:2944. 45.
0:05:29 > 0:05:3246.
0:05:32 > 0:05:3447. 48.
0:05:34 > 0:05:3749 and 50.
0:05:37 > 0:05:40Shake of the head, looking at the floor. Not a good sign.
0:05:40 > 0:05:42So you've hit his round number, I expect. You're in at 50, sir.
0:05:42 > 0:05:44You're in at 50. At 50, then.
0:05:44 > 0:05:46At 50 for the first time.
0:05:48 > 0:05:50At 50 for the second... 51.
0:05:50 > 0:05:5251 off the phone. 52.
0:05:54 > 0:05:5652. So I'm asking 53.
0:05:56 > 0:05:5853 goes, yeah. 54, I'll take.
0:05:58 > 0:06:00At 53, it's on the phone.
0:06:00 > 0:06:0153 on the phone.
0:06:01 > 0:06:03At 53,000, then.
0:06:03 > 0:06:0653 for the first time, then.
0:06:06 > 0:06:0953 for the second time.
0:06:09 > 0:06:11On the phone has it for 53,000.
0:06:11 > 0:06:15We're all out, so... Oh! 54. That was close.
0:06:15 > 0:06:1954. At 54. At 55. Straight back at you.
0:06:19 > 0:06:2160? Blow him out.
0:06:22 > 0:06:2555. 55 is on the phone. At 55.
0:06:25 > 0:06:28You're out, sir. 55 for the first time.
0:06:28 > 0:06:3055 for the second time.
0:06:30 > 0:06:32At 55,000.
0:06:32 > 0:06:35All selling at 55,000 and out.
0:06:35 > 0:06:37Congratulations.
0:06:38 > 0:06:41So, that final bid of £55,000
0:06:41 > 0:06:44was made over the phone by John and Julie.
0:06:44 > 0:06:46As keen sailors, they're more used to being
0:06:46 > 0:06:49on the end of a different kind of line.
0:06:50 > 0:06:53# It's raining more than ever
0:06:53 > 0:06:55# Know that we'll still have each other
0:06:55 > 0:06:58# You can stand under my umbrella...#
0:06:58 > 0:07:01I've come to meet them at the cottage,
0:07:01 > 0:07:06where it was a case of water, water everywhere and not a drop to drink.
0:07:06 > 0:07:10Julie, John, great to meet you both. Congratulations.
0:07:10 > 0:07:12- BOTH: Thank you.- Tell me why you wanted to buy this place.
0:07:12 > 0:07:15We love a challenge.
0:07:15 > 0:07:17That's all right, then.
0:07:17 > 0:07:22If...you count the 20 apartments we had at one time,
0:07:22 > 0:07:24this is our 43rd property.
0:07:24 > 0:07:26- Right.- So we do enjoy it.
0:07:26 > 0:07:30- Are you property developers, then? - No.- No.- What do you mean, no?
0:07:30 > 0:07:32We wouldn't class ourselves as such.
0:07:32 > 0:07:34How many do you have to have to be a developer?
0:07:34 > 0:07:3643 sounds like quite a lot to me.
0:07:36 > 0:07:38We just rather like properties, you know.
0:07:38 > 0:07:44And, er...it's the challenge of doing them up and improving them.
0:07:44 > 0:07:47Wow! And doing them up to sell on and move on, or...?
0:07:47 > 0:07:52This one in particular is going to be our own house
0:07:52 > 0:07:55- because my son lives nearby.- Right.
0:07:55 > 0:08:00- Um...so we're going to do a really good job, I hope.- OK.
0:08:00 > 0:08:02So, why this one, then?
0:08:02 > 0:08:05- It was cheap.- Yes.
0:08:05 > 0:08:09And it was appealing from the outside.
0:08:09 > 0:08:11I think it's got some character to it.
0:08:11 > 0:08:14But mainly, I think, because I love it
0:08:14 > 0:08:19when a place is so bad that anything you do to it is going to improve it.
0:08:19 > 0:08:23- It will be done to as high a standard as we can afford.- OK.
0:08:23 > 0:08:27So, then, what happens now? What's the plan for it?
0:08:27 > 0:08:29- Do you want me to? - Yes, you'd better.
0:08:29 > 0:08:31You're going to be starting on it.
0:08:31 > 0:08:33- That wall will go.- Right.
0:08:33 > 0:08:35This will be a lounge diner.
0:08:35 > 0:08:39It has a downstairs bathroom at present, which I don't like.
0:08:39 > 0:08:42That will be gone and that made into a new kitchen
0:08:42 > 0:08:47with an outside rough area made into an utility room.
0:08:47 > 0:08:50Upstairs will be a new bathroom,
0:08:50 > 0:08:53but with a shower rather than a bath tub.
0:08:53 > 0:08:56And so what we'll end up with, I hope,
0:08:56 > 0:08:58is a decent-sized kitchen,
0:08:58 > 0:09:02a decent-sized living dining room,
0:09:02 > 0:09:06um...and two double bedrooms and a bathroom upstairs.
0:09:09 > 0:09:12Sounds like what this couple are planning
0:09:12 > 0:09:14is just what this cottage needs.
0:09:14 > 0:09:17Good on John for wanting to roll up his sleeves and get stuck in.
0:09:18 > 0:09:21- So quite a lot of effort, then. - Oh, a lot.
0:09:21 > 0:09:24But I love knocking down things.
0:09:24 > 0:09:28Are you a background builder, or what?
0:09:28 > 0:09:30No, just an enthusiastic amateur.
0:09:30 > 0:09:38Um...I was, or still am, I suppose, a paediatric nurse specialist.
0:09:38 > 0:09:41- Oh, wow!- But I've been a policeman and a customs officer
0:09:41 > 0:09:43- and a hotelier and...- Wow!
0:09:43 > 0:09:44A man of many varied careers.
0:09:44 > 0:09:47Not much talent, but a lot of experience.
0:09:47 > 0:09:50How about you, Julie? What's your involvement going to be?
0:09:50 > 0:09:54I'm going to be dealing with the decorating
0:09:54 > 0:09:56and pulling down wallpaper,
0:09:56 > 0:09:59helping out with the design of the place,
0:09:59 > 0:10:02especially in the kitchen area and the bathroom.
0:10:02 > 0:10:05But I'm not going to be pulling walls down.
0:10:05 > 0:10:08I'm going to leave that to John. It'll keep him out of mischief.
0:10:08 > 0:10:10- But actively involved. - Oh, yes, yes, yes.
0:10:10 > 0:10:12And why take on a project like this?
0:10:12 > 0:10:14Why not get something that's already been done?
0:10:14 > 0:10:16Oh, that's boring.
0:10:16 > 0:10:19I don't want something that's been done.
0:10:19 > 0:10:24Because we're retired now, so we want things to keep us busy.
0:10:24 > 0:10:27- Yeah. We don't like retirement. - Right.
0:10:27 > 0:10:30- Well, we do, but...- I don't.- Right.
0:10:30 > 0:10:34- You need something to keep you going, don't you?- Mm-hm.- Projects.
0:10:34 > 0:10:37- It'll keep me off the street.- Right.
0:10:38 > 0:10:42Well, I don't think there's much chance of John being idle here.
0:10:42 > 0:10:47Just clearing the whole place out is a big enough job in itself.
0:10:47 > 0:10:50In fact, these two aren't going to waste any time at all
0:10:50 > 0:10:53as they're keen to get cracking on the renovation pronto.
0:10:54 > 0:10:59- What's the timescale? - Three to four months at the most.
0:10:59 > 0:11:00We're thinking.
0:11:00 > 0:11:03Maybe a bit longer. We'll see.
0:11:03 > 0:11:07- Will you work on it pretty full-time?- Oh, yeah.
0:11:07 > 0:11:09- We have nothing else to do. - Nothing else to do. Wow.
0:11:09 > 0:11:10Except sailing.
0:11:10 > 0:11:12What kind of sailing do you do?
0:11:12 > 0:11:17- Well, I've crossed the Atlantic under sail three times.- Wow!
0:11:17 > 0:11:23- And we have a boat in the Southampton area at the moment.- Right. Your boat?
0:11:23 > 0:11:25- Yes.- Wow.
0:11:25 > 0:11:28And we lived on our boat for nearly four years in the Med.
0:11:28 > 0:11:31- Right. How was that? - It was fun. It was fun.
0:11:31 > 0:11:34Then our son outgrew his cabin, so we had to sell the boat.
0:11:34 > 0:11:38Oh, dear! How were your Atlantic crossings, then?
0:11:38 > 0:11:42Scary, the first one. I wouldn't do it again.
0:11:42 > 0:11:47I did it subsequently twice, so I just love it.
0:11:47 > 0:11:49I just love sailing.
0:11:49 > 0:11:52- Right.- Yes.- You're not too far away from the water here.
0:11:52 > 0:11:56No. But it's too cold in these parts.
0:11:56 > 0:12:01- You're not a salty seadog? - Oh, salty enough, but not cold.
0:12:01 > 0:12:03MARTIN LAUGHS
0:12:03 > 0:12:05So, what's the budget for the work?
0:12:05 > 0:12:10- We think we're being pretty generous, 20-25.- Mm.
0:12:10 > 0:12:12- Yeah, if you do a lot of work for yourself, yeah.- Yes.
0:12:12 > 0:12:15And are you going to go for hand-built kitchens
0:12:15 > 0:12:17and posh bathrooms and stuff?
0:12:17 > 0:12:22Probably not. We're just going to put gold leaf on old ones.
0:12:22 > 0:12:25But as far as making it as nice as we can, yes, we're going to do that.
0:12:25 > 0:12:28Great. Well, congratulations to both of you.
0:12:28 > 0:12:30- Thank you.- Thank you. - Good luck with it.
0:12:30 > 0:12:33I'm really looking forward to seeing how you convert your home.
0:12:33 > 0:12:35Thank you.
0:12:36 > 0:12:40So, are there choppy waters ahead for sailors John and Julie
0:12:40 > 0:12:42when it comes to restoring this place?
0:12:42 > 0:12:45I have to be honest, I have got a bit of a sinking feeling
0:12:45 > 0:12:48about some of the problems they will encounter.
0:12:48 > 0:12:51It's never going to be easy with a house like this
0:12:51 > 0:12:53with so many nooks and crannies and thick walls
0:12:53 > 0:12:56and no damp and blah-blah-blah. It goes on.
0:12:56 > 0:12:59You can find out how they get on later in the show.
0:13:03 > 0:13:07I'm in West London today in a place called Shepherd's Bush.
0:13:07 > 0:13:10Now, it may not be the glitziest part of the capital,
0:13:10 > 0:13:14but it rubs shoulders with some pretty swanky neighbours.
0:13:14 > 0:13:17Chiswick and Notting Hill are both so close by.
0:13:17 > 0:13:19But if your funds won't stretch
0:13:19 > 0:13:23and you can't afford to live in the more desirable spots,
0:13:23 > 0:13:26then maybe it's time to start considering this part of the city.
0:13:28 > 0:13:31With a multimillion-pound shopping complex on the doorstep,
0:13:31 > 0:13:34your swanky neighbours may well head in this direction
0:13:34 > 0:13:36to spend their time and money.
0:13:36 > 0:13:40It also has fantastic transport links and a popular music venue
0:13:40 > 0:13:43that attracts people to this part of West London.
0:13:43 > 0:13:47# There's a thousand things I want to say to you... #
0:13:48 > 0:13:51A short walk from all that Shepherd's Bush has to offer
0:13:51 > 0:13:54and I'm here to see today's auction lot.
0:13:54 > 0:13:56Well, it's a purpose-built, one-bedroom flat
0:13:56 > 0:13:59in this rather attractive, in fact,
0:13:59 > 0:14:05gorgeous 1930s block with a guide price set at £180,000.
0:14:05 > 0:14:07And luckily for me, it's on the ground floor.
0:14:12 > 0:14:16This is a step into an area of elegance and good design.
0:14:16 > 0:14:19Fortunately, this property's good looks have been protected
0:14:19 > 0:14:21as the building is listed.
0:14:23 > 0:14:25And not just on the outside.
0:14:25 > 0:14:28The communal inside areas show plenty of character
0:14:28 > 0:14:29with their Art Deco style.
0:14:35 > 0:14:37I wonder if this one-bedroom flat
0:14:37 > 0:14:40will live up to my rather raised expectations?
0:14:40 > 0:14:45You certainly don't expect to walk into all this space.
0:14:45 > 0:14:49When you think this is just somewhere to hang coats and put shoes, it's just wasted.
0:14:49 > 0:14:52You've got the bathroom through there. Really tired, really old.
0:14:52 > 0:14:56It all needs a complete makeover.
0:14:56 > 0:14:58Very, very drab indeed.
0:14:58 > 0:15:00You could think about knocking through here,
0:15:00 > 0:15:02but these walls are pretty thick
0:15:02 > 0:15:04and I'm not sure you'd even get permission.
0:15:04 > 0:15:07But a lovely bright, sunny sitting area.
0:15:07 > 0:15:10Look at these old original Crittall windows.
0:15:10 > 0:15:13Now, I know this building's listed so you'll have to keep these,
0:15:13 > 0:15:17but I will say you can hear a lot of the noise outside
0:15:17 > 0:15:20and they're not fabulous at keeping the cold out.
0:15:20 > 0:15:22Maybe you could think about some secondary glazing,
0:15:22 > 0:15:24although that's not too attractive.
0:15:24 > 0:15:27You've got some outside space here, a little balcony.
0:15:27 > 0:15:31But what I absolutely love, and it gets me really excited, is this.
0:15:31 > 0:15:35And this runs right the way through the flat. You ready?
0:15:35 > 0:15:37Come and have a look at this. Look.
0:15:37 > 0:15:41Original, beautiful parquet flooring.
0:15:41 > 0:15:43How stunning is that?
0:15:43 > 0:15:46And it's really, really in good nick.
0:15:46 > 0:15:49That, to me, just stands out.
0:15:49 > 0:15:52And that's probably why I'd want to buy this flat.
0:15:52 > 0:15:56It's a great find and once this is sanded back and oiled,
0:15:56 > 0:15:58it'll be even more impressive.
0:15:58 > 0:16:01The bijou balcony may be a little snug for some,
0:16:01 > 0:16:04but having outside space, however small,
0:16:04 > 0:16:07is a fantastic asset in London.
0:16:07 > 0:16:09Back inside and the bedroom's a good size.
0:16:09 > 0:16:11And once that pink carpet is removed,
0:16:11 > 0:16:15that parquet flooring will really set the room off.
0:16:15 > 0:16:18They say all the best parties are in the kitchen.
0:16:18 > 0:16:21I don't think you'd catch me in here drinking my cocktail.
0:16:21 > 0:16:23It's a little bit on the down side.
0:16:23 > 0:16:26It needs to be ripped out and you need to start again.
0:16:26 > 0:16:29New worktops, new cabinets, new flooring.
0:16:29 > 0:16:33But the bit I love, it's the disco dance floor on the ceiling.
0:16:33 > 0:16:36# Oh, what a feeling
0:16:36 > 0:16:40# When you're dancing on the ceiling... #
0:16:40 > 0:16:44There is news about the flat that brings us right back down to earth.
0:16:45 > 0:16:47This is a leasehold flat.
0:16:47 > 0:16:50Now, the good news, the lease is nice and long
0:16:50 > 0:16:52with 150 years left to run.
0:16:52 > 0:16:55The bad news - there is a service charge.
0:16:55 > 0:16:57Are you sitting down?
0:16:57 > 0:17:05The service charge is a whopping £4,248.46 a year!
0:17:05 > 0:17:11Now, that works out at just over £354 a month.
0:17:13 > 0:17:15Wow! That's a lot of money to find
0:17:15 > 0:17:18on top of your mortgage and council tax.
0:17:18 > 0:17:21On the plus side, that mind-blowing amount does cover water,
0:17:21 > 0:17:25heating and 24-hour porter service.
0:17:28 > 0:17:32On the minus side, it could put off a lot of buyers.
0:17:32 > 0:17:37Who knows? It could be one possible reason why it went to auction.
0:17:37 > 0:17:40I wonder what a local estate agent thinks of this Art Deco style
0:17:40 > 0:17:45ground floor flat guided at £180,000.
0:17:45 > 0:17:46This property's got great potential.
0:17:46 > 0:17:50It's quite small, but you can do lots of things with it.
0:17:50 > 0:17:51It's quite a nice property.
0:17:51 > 0:17:53Light and bright, which is nice.
0:17:53 > 0:17:56I like the fact that you've got your own private balcony.
0:17:56 > 0:18:00So a bit of outside space, which is obviously at a premium in London.
0:18:00 > 0:18:04Let's talk figures. Once renovated, how much could someone make here?
0:18:04 > 0:18:06First, the resale valuations.
0:18:06 > 0:18:09I would imagine you're going to put it on the market
0:18:09 > 0:18:14for anything from £250,000, maybe as much as £275,000.
0:18:14 > 0:18:17But it would have to be an excellent standard of finish
0:18:17 > 0:18:21and high specification to command that price.
0:18:21 > 0:18:23How do the rental returns look?
0:18:23 > 0:18:27I would expect to rent this out for around about £1,200 a month.
0:18:28 > 0:18:33A well-proportioned flat moments away from the fabulous transport links,
0:18:33 > 0:18:35all the restaurants and the buzz of London
0:18:35 > 0:18:37that's literally outside your door.
0:18:37 > 0:18:42The only real issue I can see is that astronomical service charge.
0:18:42 > 0:18:45It's scary. I think that'll definitely put some people off.
0:18:45 > 0:18:49Who wanted this flat? Let's find out when it went to auction.
0:18:52 > 0:18:56Shepherd's Bush W6. Purpose-built one-bed flat requires modernisation.
0:18:57 > 0:19:02I don't know, start low. 150. Not going to go below 150.
0:19:02 > 0:19:05150 in the aisle. 155.
0:19:05 > 0:19:07155. 160.
0:19:07 > 0:19:11165. 170.
0:19:11 > 0:19:12175.
0:19:12 > 0:19:15180. 185.
0:19:15 > 0:19:17190.
0:19:17 > 0:19:19195.
0:19:19 > 0:19:23190 with you, sir. 195?
0:19:23 > 0:19:26Anywhere else? 195.
0:19:26 > 0:19:28200. 205?
0:19:28 > 0:19:32201. 202, sir.
0:19:32 > 0:19:34203. 204.
0:19:34 > 0:19:36205.
0:19:36 > 0:19:38206.
0:19:38 > 0:19:40207.
0:19:40 > 0:19:43Yep. 208. 209.
0:19:44 > 0:19:46208, back to you. 209 elsewhere?
0:19:48 > 0:19:53208 first time, second time, third and last time, if we're all done.
0:19:53 > 0:19:56Where? You've got to scream and shout, madam.
0:19:56 > 0:19:57209.
0:19:57 > 0:19:59210.
0:19:59 > 0:20:00211.
0:20:00 > 0:20:02212.
0:20:02 > 0:20:03213.
0:20:04 > 0:20:07212 with you, sir. 213 anywhere else?
0:20:07 > 0:20:10If not, 212 first time, second time,
0:20:10 > 0:20:13third and last time, if you're all done.
0:20:13 > 0:20:15Sold. 212. Well done.
0:20:18 > 0:20:22The successful bidders for that very popular and first lot of the day
0:20:22 > 0:20:24were married couple Fran and Paul.
0:20:27 > 0:20:29This was their first auction purchase.
0:20:29 > 0:20:33I met them at the flat to find out what they were planning for it.
0:20:33 > 0:20:37- Fran and Paul, congratulations. - Thank you.- Was this always the plan?
0:20:37 > 0:20:41- Is this the one you wanted to buy on auction day?- Yeah.
0:20:41 > 0:20:44We only live around the corner. We pass this building almost every day.
0:20:44 > 0:20:47We always have a glance over and think, that's really nice.
0:20:47 > 0:20:51So when we saw there was a flat in this block coming up at auction,
0:20:51 > 0:20:53we thought, "We have to go for that."
0:20:53 > 0:20:56And so we was looking for something that wasn't going to be
0:20:56 > 0:20:59too structurally difficult to do.
0:20:59 > 0:21:01Something that we could just come in and really just tidy up.
0:21:01 > 0:21:05Maybe a new kitchen, new bathroom. This ticked all the boxes, really.
0:21:05 > 0:21:07You're both Londoners, so you know the area very well.
0:21:07 > 0:21:11What is it that appeals to you about this part of Shepherd's Bush, Fran?
0:21:11 > 0:21:13I've lived in the area all my life.
0:21:13 > 0:21:15- I've never been out of the area. - Really?- Yeah.
0:21:15 > 0:21:17So I know it tremendously well.
0:21:17 > 0:21:20There was four properties we looked at. This was the main one we wanted,
0:21:20 > 0:21:22but we didn't think we'd get it on budget.
0:21:22 > 0:21:26So when we did, it was lot one of the day, it was fantastic.
0:21:26 > 0:21:28- And you got it for £212,000. - Correct.
0:21:28 > 0:21:30So, what was your upper limit?
0:21:30 > 0:21:32We were going to go to about 218.
0:21:32 > 0:21:35So we were quite pleased to get it underneath that.
0:21:38 > 0:21:40This auction went like a dream for them.
0:21:40 > 0:21:44Not only because they got their property for less than they were prepared to pay,
0:21:44 > 0:21:47but also because by getting the first lot to come up,
0:21:47 > 0:21:49they didn't have to spend the whole day wondering
0:21:49 > 0:21:52if they'd get any of the ones they wanted.
0:21:52 > 0:21:53Job done.
0:21:53 > 0:21:55Well, at least that's one job done.
0:21:55 > 0:21:57There are plenty of others to get on with.
0:21:57 > 0:22:00- So, you're quite excited? - Yeah.- Are you a busy guy?
0:22:00 > 0:22:02- Do you have another job? - Yeah. I'm an accountant.
0:22:02 > 0:22:06I work for the English Tourist Board in their finance department,
0:22:06 > 0:22:08which is a full-time job.
0:22:08 > 0:22:11So, yeah, this will mostly be weekends and evenings for me.
0:22:11 > 0:22:13- Are you going to be helping out? - Absolutely.
0:22:13 > 0:22:15Wherever I can, I will, yeah.
0:22:15 > 0:22:18- So you're both happy to get your teeth stuck into this.- Yeah.- Yeah.
0:22:18 > 0:22:20What are you planning on doing with this property?
0:22:20 > 0:22:22One of the plans we're thinking of doing
0:22:22 > 0:22:25is moving the kitchen from where it is at the moment into the hallway,
0:22:25 > 0:22:27because we've got quite a large hallway
0:22:27 > 0:22:29and a few flats in this block have actually done that.
0:22:29 > 0:22:31So it makes it a small kitchen,
0:22:31 > 0:22:33but that's sort of expected in this block.
0:22:33 > 0:22:35And that will give us an extra bedroom.
0:22:35 > 0:22:38So we'll make a one-bedroom flat into a two bedroom.
0:22:38 > 0:22:40Do you think the kitchen will be too small?
0:22:40 > 0:22:42I mean, have you actually seen some of these flats
0:22:42 > 0:22:45with the kitchens in the hallway? Have you had a look?
0:22:45 > 0:22:48No. I've seen photos, but I haven't actually physically seen them.
0:22:48 > 0:22:51And that is a worry. Is it going to be too small?
0:22:51 > 0:22:54So we're not 100% decided that is what we're going to do.
0:22:54 > 0:22:55Have you done any research?
0:22:55 > 0:22:58Have you worked out how much you could sell it for as a one-bedder,
0:22:58 > 0:23:00how much you could sell it for as a two-bedder?
0:23:00 > 0:23:03Yeah. It isn't really that much difference.
0:23:03 > 0:23:06We're going to get a few quotes in
0:23:06 > 0:23:11and see how much it would cost us to move the kitchen into the hallway
0:23:11 > 0:23:12before we make that final decision,
0:23:12 > 0:23:15whether we're going to do that or not.
0:23:15 > 0:23:17# So move it on over
0:23:17 > 0:23:18# Move it on over
0:23:18 > 0:23:20# Move it on over
0:23:20 > 0:23:21# Move it on over
0:23:21 > 0:23:25# Move over, little dog cos the big dog's moving in. #
0:23:26 > 0:23:29As Paul and Fran plan to sell the flat on,
0:23:29 > 0:23:31they're doing the right thing by researching
0:23:31 > 0:23:34how a layout change could affect their profit margin.
0:23:34 > 0:23:36They want to make the property look as good as possible,
0:23:36 > 0:23:40but also know that nothing can make that hefty service charge
0:23:40 > 0:23:42of £4,000 attractive.
0:23:44 > 0:23:47Do you think it'll put somebody off when they come to buy this property?
0:23:47 > 0:23:50Yeah. I think it is a bit of a gamble.
0:23:50 > 0:23:53But I think for the area we're in and being in a listed building
0:23:53 > 0:23:55that does look as nice as this one does,
0:23:55 > 0:23:57I think you have to pay the price for that.
0:23:57 > 0:24:01It will undoubtedly become a drawback when it comes to selling.
0:24:01 > 0:24:04But it is a beautiful building and hopefully,
0:24:04 > 0:24:07someone will be prepared to pay that hefty £4,000 service charge
0:24:07 > 0:24:11on top of the mortgage and rent payments.
0:24:11 > 0:24:13Paul and Fran have a £10,000 budget
0:24:13 > 0:24:16and a schedule of four months for this job.
0:24:16 > 0:24:19Fran and Paul, good luck with this project.
0:24:19 > 0:24:21I wonder if we will come back to a kitchen in the hallway.
0:24:21 > 0:24:24- Thank you very much.- Congratulations. Thank you.- Thank you.
0:24:24 > 0:24:28Buying on home turf is always something I recommend
0:24:28 > 0:24:32and Fran and Paul know this part of London like the back of their hand.
0:24:32 > 0:24:35But how will they get on moving that kitchen
0:24:35 > 0:24:37and will they be able to turn this
0:24:37 > 0:24:41into a two-bedroom flat to see the real return?
0:24:41 > 0:24:44The big question is, will that service charge
0:24:44 > 0:24:47become a sticking point when it comes to sell?
0:24:47 > 0:24:51You can find out how they get on later in the programme.
0:24:51 > 0:24:53Coming up - in Manchester,
0:24:53 > 0:24:57polishing this former jeweller's will be back-breaking work.
0:24:57 > 0:25:00Well, an interesting opportunity here for somebody.
0:25:02 > 0:25:05In Shepherd's Bush, Paul and Fran went flat out to finish.
0:25:05 > 0:25:08We spent most of our time going out, getting materials
0:25:08 > 0:25:11and making sure the builders had everything they needed.
0:25:12 > 0:25:15But first, we return to Cornwall.
0:25:15 > 0:25:17Has this refurbishment been plain sailing?
0:25:17 > 0:25:19It's been fun. It has been.
0:25:19 > 0:25:21For the most part.
0:25:25 > 0:25:27Back now to Callington, Cornwall,
0:25:27 > 0:25:31and this two-bed cottage which was... Hmm, how shall I put this?
0:25:31 > 0:25:34A bit worse for wear.
0:25:34 > 0:25:37It was bought at auction for £55,000
0:25:37 > 0:25:41by enthusiastic amateur property developers John and Julie,
0:25:41 > 0:25:44who were unfazed by the state of the place.
0:25:46 > 0:25:48I love it when a place is so bad
0:25:48 > 0:25:51that anything you do to it is going to improve it.
0:25:51 > 0:25:55It will be done to as high a standard as we can afford.
0:25:58 > 0:26:00The couple were planning to roll up their sleeves
0:26:00 > 0:26:05and spend three to four months and £20,000-£25,000
0:26:05 > 0:26:07turning the cottage into their new home.
0:26:07 > 0:26:10Five months after our first visit,
0:26:10 > 0:26:13we're back to see if they've brought some sunshine
0:26:13 > 0:26:16to this little bit of the West Country.
0:26:20 > 0:26:23# I can see clearly now the rain has gone
0:26:24 > 0:26:29# I can see all obstacles in my way
0:26:31 > 0:26:36# Gone are the dark clouds that had me blind
0:26:36 > 0:26:40# It's going to be a bright Bright sunshiny day
0:26:43 > 0:26:47# Look around there's nothing but blue skies
0:26:48 > 0:26:54# Look straight ahead nothing but blue
0:26:54 > 0:26:56# Skies. #
0:27:02 > 0:27:04Well done, John and Julie.
0:27:04 > 0:27:08The cottage has been transformed from dark and dingy
0:27:08 > 0:27:12to bright and airy. It's almost unrecognisable.
0:27:14 > 0:27:17What we've done is everything.
0:27:17 > 0:27:19Everything you see, virtually, is brand new.
0:27:19 > 0:27:22Brand-new plumbing throughout,
0:27:22 > 0:27:24electricity supply throughout.
0:27:24 > 0:27:29Every square inch of outside and inside has been painted,
0:27:29 > 0:27:31varnished, lacquered.
0:27:31 > 0:27:35We've taken out the old bathroom, relocated it upstairs
0:27:35 > 0:27:38and put a kitchen where the bathroom was.
0:27:38 > 0:27:43And we've created a utility room out of the lean-to.
0:27:44 > 0:27:47John and Julie really have been busy.
0:27:47 > 0:27:50They still need to do something with the backyard,
0:27:50 > 0:27:53but once they'd cleared the cottage out,
0:27:53 > 0:27:56they were able to sort out any potential damp issues
0:27:56 > 0:27:58and start putting things back together.
0:27:58 > 0:28:02They were particularly keen to get the bathroom in upstairs
0:28:02 > 0:28:05and are chuffed with the way that has come together.
0:28:06 > 0:28:09We were worried that it wouldn't work out,
0:28:09 > 0:28:11because it is a small bathroom
0:28:11 > 0:28:14without a bath, but it has a shower.
0:28:14 > 0:28:16But it really did work well.
0:28:18 > 0:28:20Moving the bathroom has allowed them
0:28:20 > 0:28:25to create a lovely open-plan living dining room downstairs
0:28:25 > 0:28:29and a good-sized kitchen.
0:28:29 > 0:28:33This was the old bathroom.
0:28:33 > 0:28:36We just tore the whole place apart
0:28:36 > 0:28:38and then put in the kitchen.
0:28:38 > 0:28:43We used decent materials and I think it looks good.
0:28:43 > 0:28:45We're pleased with it, anyway.
0:28:47 > 0:28:49And so they should be.
0:28:49 > 0:28:52Despite all their experience in renovating property,
0:28:52 > 0:28:56was there ever a moment when this project just seemed overwhelming?
0:28:58 > 0:29:04It was daunting because we had never taken on a property like this
0:29:04 > 0:29:08with so much to do. But we knew that we could do it.
0:29:08 > 0:29:13In the end, it was just...hard graft.
0:29:17 > 0:29:18Thanks to all that hard graft,
0:29:18 > 0:29:22the couple have managed to stick more or less to their timescale.
0:29:22 > 0:29:27But what about their £20,000-£25,000 budget?
0:29:28 > 0:29:30Blew it.
0:29:31 > 0:29:35- Yes. It was over. - Went zooming past it. Um...
0:29:35 > 0:29:3737.
0:29:39 > 0:29:40That is quite an overspend,
0:29:40 > 0:29:43but John and Julie think it's all been worthwhile
0:29:43 > 0:29:46and are enjoying their new home.
0:29:46 > 0:29:51Their total spend, including the purchase price, is £92,000.
0:29:51 > 0:29:55So, what do two local property experts make of the transformation?
0:29:55 > 0:29:58First up, the auctioneer who sold the place.
0:29:58 > 0:30:01When I knocked on the front door to come to the property today,
0:30:01 > 0:30:05I thought I was at the wrong place in comparison to what it was before.
0:30:05 > 0:30:09What they have done is a massive uplift to the property and the area.
0:30:09 > 0:30:11First impression is just a country cottage feel.
0:30:11 > 0:30:13The character of the beam ceilings
0:30:13 > 0:30:16and just the quaint cosiness of the property.
0:30:16 > 0:30:21What do they reckon the property could fetch if it was let out?
0:30:22 > 0:30:28Rental, I would suggest between £550 and £575 per calendar month.
0:30:28 > 0:30:33On the rental market, you could achieve somewhere in the region of £550 to £600 per calendar month.
0:30:33 > 0:30:36- If we were doing it, that seems OK.- Yeah.
0:30:36 > 0:30:40Those rental valuations could bring in a healthy yield
0:30:40 > 0:30:42of between seven and eight percent.
0:30:42 > 0:30:45What about selling the cottage on?
0:30:47 > 0:30:50If I was to put the property on the market today, I would put
0:30:50 > 0:30:55it on the market for somewhere in the region of £120,000 to £125,000.
0:30:55 > 0:30:58I would certainly put it between £120,000 and £125,000.
0:30:58 > 0:31:02That sounds fine but I think once we've done
0:31:02 > 0:31:05the landscaping in the garden, it will be worth a bit more.
0:31:08 > 0:31:11Those resale valuations could mean a profit before tax and expenses
0:31:11 > 0:31:17of between £28,000 and £33,000, which is really pretty impressive.
0:31:17 > 0:31:21Now John and Julie bought this property to be near to their son
0:31:21 > 0:31:24but he has decided to move to Portugal,
0:31:24 > 0:31:28so will they be sailing off into the sunset to join him?
0:31:30 > 0:31:33We can always base ourselves here and do something somewhere else.
0:31:33 > 0:31:35We will just see.
0:31:35 > 0:31:38This has been a major renovation by any standards
0:31:38 > 0:31:42and the results are gratifying. How would they sum it up?
0:31:42 > 0:31:45- We are glad to have it finished.- Yes.
0:31:45 > 0:31:48- I think...- But it's been tough.
0:31:48 > 0:31:52It has been fun, it has been, for the most part.
0:31:52 > 0:31:56But I'm glad it is over with now.
0:32:01 > 0:32:04Manchester is a major centre for the arts, media and commerce.
0:32:07 > 0:32:10And on the edge of the city, there are many characterful suburbs
0:32:10 > 0:32:13and villages which are well worth a look.
0:32:13 > 0:32:17Today, I'm in the residential suburb of Denton.
0:32:17 > 0:32:20A popular place to live with good transport links and amenities
0:32:20 > 0:32:25but it also has some other really interesting claims to fame.
0:32:25 > 0:32:29It was famous for the hat making industry and in its heyday,
0:32:29 > 0:32:35in the 1840s, over 24,000 felt hats were made here every week.
0:32:36 > 0:32:40# Wherever I lay my hat
0:32:40 > 0:32:43# That's my home. #
0:32:43 > 0:32:48In the busy heart of Denton, there are still a few clues to the area's distinctive past.
0:32:50 > 0:32:55Let's hope that wherever I lay my hat could become someone's home.
0:32:55 > 0:32:58Actually, maybe not. Because up for auction was this.
0:32:58 > 0:33:03It's a former shop with some rooms above and a guide price of £30,000.
0:33:03 > 0:33:05Let's take a look inside.
0:33:08 > 0:33:12OK. Little entrance area here and then into the main part of the shop.
0:33:12 > 0:33:15Clearly, it is a bit dark and dingy,
0:33:15 > 0:33:18partly because the rollers on the front there.
0:33:18 > 0:33:20In terms of space, it's not too bad.
0:33:20 > 0:33:24Needs a bit of work but when you look at a commercial premises,
0:33:24 > 0:33:27it is square-footage that matters, so not a bad start.
0:33:30 > 0:33:33This premises has had other incarnations.
0:33:33 > 0:33:35It was a terraced house and a butcher's.
0:33:35 > 0:33:41Latterly, it was a jeweller's, so presumably had more sparkle than it does now.
0:33:41 > 0:33:43# Gold and diamonds Gold and diamonds
0:33:43 > 0:33:45# Diamonds... #
0:33:45 > 0:33:47It is hard to imagine it now, though.
0:33:47 > 0:33:50In the years since this was a thriving business,
0:33:50 > 0:33:53the shine has definitely come off this little gem.
0:33:54 > 0:33:58The previous use of this shop explains the heavy security window,
0:33:58 > 0:34:01which unfortunately, we couldn't budge on the day I visited.
0:34:01 > 0:34:03# Don't shut me out
0:34:03 > 0:34:07# Shut me out Out of your life. #
0:34:07 > 0:34:10I'm sure once it's opened, it will seem much brighter.
0:34:12 > 0:34:14Through here into the back shop and again,
0:34:14 > 0:34:18there's quite a sizeable space to work with,
0:34:18 > 0:34:20as well as a really useful utility room.
0:34:20 > 0:34:22That creates all sorts of possibilities
0:34:22 > 0:34:26for any new business you might want to run here.
0:34:26 > 0:34:31An added bonus is that there's that all-important heavy safe.
0:34:31 > 0:34:34If upstairs turns out to be as good as this,
0:34:34 > 0:34:38then for that £30,000 guide price, it might be a steal.
0:34:40 > 0:34:42The upper floor is accessed by a staircase
0:34:42 > 0:34:45between the office and shop.
0:34:45 > 0:34:49Upstairs and there is a bathroom and two rooms.
0:34:49 > 0:34:51Definitely a useful space.
0:34:51 > 0:34:54That brings me on to say what could you use this building for?
0:34:54 > 0:34:57You could keep it like it is, run downstairs as a shop
0:34:57 > 0:35:03and this as accommodation for whoever ran the shop or possibly storage space.
0:35:03 > 0:35:09It is quite easy to get planning permission for a conversion from a shop premises to residential,
0:35:09 > 0:35:11slightly easier than the other way round,
0:35:11 > 0:35:16unless the authorities deem the shop to provide an important local amenity.
0:35:16 > 0:35:18In which case you could convert this space
0:35:18 > 0:35:21possibly into one house or, I think a better way to go, two flats.
0:35:21 > 0:35:23A set of access stairs at the back
0:35:23 > 0:35:27and you've got the entrance at the front for the other flat.
0:35:27 > 0:35:28That, I think, would be the way to go.
0:35:28 > 0:35:33What you have got here, which I really do like, is flexibility and options.
0:35:33 > 0:35:38That said, there is a lot of work required on this former jeweller's shop.
0:35:38 > 0:35:43# All that glitters
0:35:43 > 0:35:46# It ain't gold... #
0:35:46 > 0:35:48No matter which option you choose,
0:35:48 > 0:35:51it's going to involve a lot of effort to bring it up to scratch.
0:35:53 > 0:35:56At the rear of the property, some fairly heavy security measures.
0:35:56 > 0:35:58You've got razor wire, bars on the windows
0:35:58 > 0:36:00and, of course, the shutters.
0:36:00 > 0:36:04This could have something to do with the shop's previous use as a jeweller's.
0:36:04 > 0:36:08You have got shared access so although it's not ideal,
0:36:08 > 0:36:12at least it does provide that all-important second route in and out of the property.
0:36:13 > 0:36:17With a guide price of £30,000, this auction lot
0:36:17 > 0:36:20offered plenty of property and potential on auction day.
0:36:22 > 0:36:24We invited the auctioneer who sold it to come
0:36:24 > 0:36:28and have a look around and size up the various opportunities here.
0:36:28 > 0:36:30What would he advise?
0:36:30 > 0:36:32Personally I think the main option
0:36:32 > 0:36:37would be to continue as it is, as a commercial property on both floors.
0:36:37 > 0:36:40The other option is perhaps putting a single commercial unit downstairs
0:36:40 > 0:36:43and turning the upstairs into a lettable flat.
0:36:43 > 0:36:45Or a third option,
0:36:45 > 0:36:49there is a possibility to turn this back into a residential property as a two bedroom terrace.
0:36:49 > 0:36:54Of course, those alternative options would be dependant on getting appropriate planning permission.
0:36:54 > 0:36:57If the property was renovated on much the same lines
0:36:57 > 0:37:01as it is now, that's the whole building as one commercial unit,
0:37:01 > 0:37:08the auctioneer thinks it could produce £5,500 to £6,000 per year.
0:37:08 > 0:37:12And it could be worth £60,000 to £65,000 if sold.
0:37:12 > 0:37:16But what if you were to go for the mixed commercial and residential option?
0:37:16 > 0:37:18What income could be produced then?
0:37:18 > 0:37:22We would anticipate a rental value on the shop
0:37:22 > 0:37:25probably around £4,500-£5,500 per annum
0:37:25 > 0:37:28and the one bedroom flat, we would anticipate you would get
0:37:28 > 0:37:32between £250 and £350 per calendar month for it.
0:37:32 > 0:37:37If you were successful in getting planning permission to convert the whole place back into one house,
0:37:37 > 0:37:41how much could it then be let for and what could it sell for?
0:37:41 > 0:37:46If the property were renovated and reinstated as a two bedroom mid-terrace,
0:37:46 > 0:37:49we would expect a resale value of between £75,000 and £85,000
0:37:49 > 0:37:51and if the property were to be rented out,
0:37:51 > 0:37:57we would anticipate a rental value in the region of £450-£475 per calendar month.
0:37:57 > 0:38:00Well, an interesting opportunity here for somebody.
0:38:00 > 0:38:04Bit of work to be done, not least sorting out the access issues
0:38:04 > 0:38:08but let's see who fancied it when it went under the hammer.
0:38:08 > 0:38:11This is a shop on a busy main road, this one.
0:38:11 > 0:38:14A lot of interest in this one.
0:38:14 > 0:38:17Who is going to give me £30,000?
0:38:17 > 0:38:2030,000? 25? 25 in the back. 25, I have. 26?
0:38:20 > 0:38:2226,000? 27?
0:38:22 > 0:38:2527,000. 28?
0:38:25 > 0:38:29At 28. 29. £29,000 at the back.
0:38:29 > 0:38:33Do you want to come in at 30? 30. 31?
0:38:33 > 0:38:35There are two of you in it. 31.
0:38:35 > 0:38:3832? 32. 33? At £33,000. 34?
0:38:38 > 0:38:4134,000. 35?
0:38:41 > 0:38:42At £35,000.
0:38:42 > 0:38:4536, I'm looking for now. 36.
0:38:45 > 0:38:4937? 37. 37? At 37. 38?
0:38:49 > 0:38:51What about half?
0:38:51 > 0:38:5338,500. 39?
0:38:53 > 0:38:5639. At £39,000.
0:38:56 > 0:39:0039,500. 40. At £40,000.
0:39:00 > 0:39:0340,500. 40,500. 41?
0:39:03 > 0:39:06No. At £40,500 on my right.
0:39:06 > 0:39:10At 40,500 for the first time.
0:39:10 > 0:39:12Second time.
0:39:12 > 0:39:15Third and final time at £40,500.
0:39:15 > 0:39:18It's your property on the right.
0:39:18 > 0:39:24The successful bidder who paid £40,500 for the former jeweller's shop in Denton was Mark.
0:39:24 > 0:39:27He is a self-employed gas fitter who attended the auction
0:39:27 > 0:39:30with his eldest daughter, Rebecca.
0:39:32 > 0:39:34Mark and his wife Nicky live in Denton.
0:39:34 > 0:39:37Nicky runs an internet retail business,
0:39:37 > 0:39:40as well as working part-time as a DJ in local pubs and clubs.
0:39:40 > 0:39:44She is also currently training to be a nutritional coach.
0:39:46 > 0:39:52I met with both of them at the property to find out their plans for this former jeweller's shop.
0:39:54 > 0:39:59- Nicky, Mark, great to meet you both. Congratulations.- Thank you.
0:39:59 > 0:40:02- Tell me why you wanted to buy this place.- We drove past one day.
0:40:02 > 0:40:04- We only live local and... - Saw the sign.
0:40:04 > 0:40:06Saw the price.
0:40:06 > 0:40:11The price attracted us so we come for a viewing and decided to go for it.
0:40:11 > 0:40:14I can imagine you just deciding to go for a terraced house
0:40:14 > 0:40:16but this is like a really interesting property
0:40:16 > 0:40:19with a shop downstairs and a flat upstairs.
0:40:19 > 0:40:22Why was it the sort of thing you drove past and thought, yeah?
0:40:22 > 0:40:26We was looking or thinking of a place anyway, weren't we?
0:40:26 > 0:40:30- For Nicky's business.- OK. - So see what happens.
0:40:30 > 0:40:32Tell me about your business.
0:40:32 > 0:40:39I work in the sort of health industry so it's nutrition, sports, energy levels, things like that.
0:40:39 > 0:40:41- And where do you work from at the moment?- From home.
0:40:41 > 0:40:46I go to people's houses. I'll have a clinic and do it from there.
0:40:46 > 0:40:48Oh, gosh. So this whole building would be it?
0:40:48 > 0:40:50Upstairs will do beauty and clinic downstairs.
0:40:50 > 0:40:53- And what treatments will you have? Will it all be you?- No, no.
0:40:53 > 0:40:56It will be obviously beauticians upstairs.
0:40:56 > 0:40:59Obviously I will be downstairs in the clinic.
0:41:01 > 0:41:04So Mark and Nicky spotted the enterprise opportunity here.
0:41:04 > 0:41:07Being local to where they live, it's ideal.
0:41:07 > 0:41:11They plan to turn the whole place into a health and beauty clinic.
0:41:12 > 0:41:18# You are so beautiful to me. #
0:41:20 > 0:41:23Luckily, since Mark's a gas fitter by trade,
0:41:23 > 0:41:27that should help save money as that is usually one of the services
0:41:27 > 0:41:30people have to call in when renovating a property.
0:41:30 > 0:41:33Obviously, the place needs a full and thorough rewiring,
0:41:33 > 0:41:36so that will require a qualified electrician
0:41:36 > 0:41:40but apart from that, the couple plan to do most of the work themselves.
0:41:41 > 0:41:44So tell me what you're going to do to sort it out?
0:41:44 > 0:41:46- THEY LAUGH - A full refurb.- Everything.
0:41:46 > 0:41:51Looking at it, I think we need to go back to brickwork,
0:41:51 > 0:41:53new electrics, new heating
0:41:53 > 0:41:57and possibly a few new walls here and there and take it from there.
0:41:57 > 0:41:59So what is the budget for the work?
0:41:59 > 0:42:03- We are hoping to do it for around about 10,000.- Wow.- Yeah.
0:42:03 > 0:42:06Obviously, that's a lot of our own labour.
0:42:06 > 0:42:10And downstairs, lots of shop fitting which can be expensive.
0:42:10 > 0:42:13- For the moment, we can't even get the shutters up.- Shutters up, yeah.
0:42:13 > 0:42:18- So that will be the first point. - Yeah.- And what kind of timescale?
0:42:18 > 0:42:21- Hopefully about four to five months. - But doing a lot of stuff yourselves?
0:42:21 > 0:42:23BOTH: Yeah.
0:42:23 > 0:42:27- Good luck. Nice to meet you both. - Thank you.- Cheers.- Thank you.
0:42:29 > 0:42:32There's a lot of work for Mark and Nicky to do
0:42:32 > 0:42:34before this place is open for business.
0:42:34 > 0:42:37You can find out how they get on later in the show.
0:42:40 > 0:42:42Well, it's time to go back to those properties
0:42:42 > 0:42:44and see how the new owners have got on.
0:42:44 > 0:42:49Did they stick to their timescales and their budgets? Let's find out.
0:42:51 > 0:42:53Shepherd's Bush, West London.
0:42:53 > 0:42:56A massive high-end shopping centre, great transport links
0:42:56 > 0:43:02and a popular music venue have made this an increasingly attractive area to live,
0:43:02 > 0:43:04and in this beautiful 1930s apartment block,
0:43:04 > 0:43:08we came to see this one bed flat which unfortunately
0:43:08 > 0:43:11looked like it hadn't been decorated since then.
0:43:11 > 0:43:15But that didn't deter first-time developers Paul, an accountant,
0:43:15 > 0:43:16and his wife Fran.
0:43:16 > 0:43:19They paid £212,000 for it because,
0:43:19 > 0:43:24despite the shabby, run-down appearance, they could see there was loads of potential here.
0:43:24 > 0:43:27One of the plans that we're thinking of doing is moving the kitchen
0:43:27 > 0:43:33from where it is at the moment into the hallway, because we've got quite a large hallway.
0:43:33 > 0:43:37That will give us an extra bedroom so will make a one bedroom flat into a two bedroom.
0:43:37 > 0:43:39Do you think the kitchen will be too small?
0:43:39 > 0:43:43- Have you actually seen some of these flats with the kitchens in the hallway?- No.
0:43:43 > 0:43:47I've seen photos of them but I haven't been in and seen them. That is a worry.
0:43:47 > 0:43:49Is it going to be too small?
0:43:49 > 0:43:51We're not 100% decided that is what we are going to do.
0:43:51 > 0:43:55Paul and Fran's intention was to refurbish and sell it on.
0:43:55 > 0:43:59However, I was really worried that a major factor,
0:43:59 > 0:44:02which might put buyers off, was the enormous service charge
0:44:02 > 0:44:05for this leasehold flat - over £4,000 a year.
0:44:05 > 0:44:12But undaunted, they steamed ahead with their ten grand budget and four month schedule.
0:44:13 > 0:44:16Five months on, we've returned to see if Fran and Paul
0:44:16 > 0:44:19have managed to jazz up this property.
0:44:22 > 0:44:24Wow!
0:44:24 > 0:44:28That lounge has been brought back to its former '30s glory.
0:44:28 > 0:44:30The parquet floor has been restored and oiled.
0:44:33 > 0:44:37The bedroom's had the same treatment and the result is just amazing.
0:44:39 > 0:44:44The new bathroom is very much in keeping with the style and tone of the flat.
0:44:47 > 0:44:50I was a little dubious about that rather tentative plan
0:44:50 > 0:44:53to move the kitchen into the hall and create a second bedroom,
0:44:53 > 0:44:56so have they gone for it?
0:44:57 > 0:44:59No, I'm glad to say they haven't!
0:45:00 > 0:45:02The kitchen stayed where it was,
0:45:06 > 0:45:07But look at it now!
0:45:07 > 0:45:10So why did they leave the layout as it was before?
0:45:12 > 0:45:14We took some advice on this and we was told that
0:45:14 > 0:45:17because it's a listed building, we would have to go through quite
0:45:17 > 0:45:20a rigorous planning application to get that done.
0:45:20 > 0:45:22It would take quite a long time, it would take a few months
0:45:22 > 0:45:26and it would actually be very likely to be turned down due to fire restrictions.
0:45:26 > 0:45:29So we quickly came to the decision that that wasn't for us,
0:45:29 > 0:45:31we would keep the hallway as it is.
0:45:33 > 0:45:35As first-time developers,
0:45:35 > 0:45:37I reckon Paul and Fran have done the right thing by not
0:45:37 > 0:45:42taking on a long and possibly doomed attempt to change the layout.
0:45:42 > 0:45:45Keeping it simple is usually the safest course of action,
0:45:45 > 0:45:49which they've done here and restored some character.
0:45:49 > 0:45:51Paul's actually restored the original Bakelite handles,
0:45:51 > 0:45:53as he used to be an antique restorer.
0:45:53 > 0:45:55And, also, the hinges on the cupboards,
0:45:55 > 0:45:58he's tried to get them to the original effect as possible
0:45:58 > 0:46:01by sourcing stuff on the Internet.
0:46:01 > 0:46:03He's done a very good job on both parts, actually.
0:46:03 > 0:46:05I'm really pleased with how the floor's come out.
0:46:05 > 0:46:07It was quite a task to get the right blocks in place
0:46:07 > 0:46:09and to get it sanded down and to get it vanished.
0:46:09 > 0:46:12It looks fantastic and it's one of the first things that people notice
0:46:12 > 0:46:15when they walk in here. They say how nice the floor's looking.
0:46:15 > 0:46:17I'm pleased with how it's come out.
0:46:19 > 0:46:22The couple had planned to do quite a bit of refurbishment together
0:46:22 > 0:46:24after work and at weekends.
0:46:26 > 0:46:29We originally intended to do a lot of the work ourselves
0:46:29 > 0:46:34but this block actually has restrictions on the timings of when you can do noisy work.
0:46:34 > 0:46:37So we employed someone to come in and actually do the work for us,
0:46:37 > 0:46:40while me and Fran took on more of a project manager's role.
0:46:40 > 0:46:43We spent most of our time going out and getting materials
0:46:43 > 0:46:46and making sure that the builders had everything that they needed.
0:46:47 > 0:46:51So the renovation didn't go as smoothly as the couple would have liked
0:46:51 > 0:46:55but they do view it as essential experience for future projects.
0:46:55 > 0:46:59I would say to anybody in property developing, you really don't know what to expect.
0:46:59 > 0:47:01It's a rollercoaster and what I would say is,
0:47:01 > 0:47:04chuck yourself in and deal with each situation as it occurs.
0:47:04 > 0:47:09As newbie developers, I reckon Paul and Fran have done a good job on this flat.
0:47:09 > 0:47:11It's got freshness, warmth and style.
0:47:13 > 0:47:16Having to use contractors meant they did finish just
0:47:16 > 0:47:19within their four-month schedule but, of course,
0:47:19 > 0:47:22getting tradesmen in must have affected their budget.
0:47:22 > 0:47:27Well, originally we was going to spend 10,000 on the budget. We only had a £5,000 contingency.
0:47:27 > 0:47:32Luckily we did have that because as we had to get other people in to do that work,
0:47:32 > 0:47:34we had to eat into the contingency.
0:47:34 > 0:47:37We ended up spending 14,000 on the job.
0:47:41 > 0:47:44That £14,000 spend on the renovation would take their total outlay
0:47:44 > 0:47:47to 226,000.
0:47:47 > 0:47:50Time to find out from two local estate agents, including
0:47:50 > 0:47:54the one who saw it before, if they think it's money well spent.
0:47:54 > 0:47:58Obviously, coming back for the second time to see the property
0:47:58 > 0:48:00renovated, complete transformation.
0:48:00 > 0:48:03It doesn't look anything like it used to.
0:48:03 > 0:48:04It's a nice surprise.
0:48:04 > 0:48:07My first impressions of the flat are that it's a good refurbishment,
0:48:07 > 0:48:09good attention to detail
0:48:09 > 0:48:13and would make an ideal pied-a-terre for somebody.
0:48:13 > 0:48:17So far, so good, but are there any negatives?
0:48:17 > 0:48:19The service charge is high.
0:48:19 > 0:48:21There are other properties in the area with lower service charges
0:48:21 > 0:48:23that have more facilities.
0:48:23 > 0:48:26It's good that the heating and hot water is included
0:48:26 > 0:48:29and there's a porter, as well, but it is at the very upper end of the service charges
0:48:29 > 0:48:32that would be expected in this area.
0:48:32 > 0:48:36Paul and Fran's total outlay is 226,000,
0:48:36 > 0:48:40so would they make any profit by selling the flat?
0:48:40 > 0:48:43I would put the flat on the market at £255,000,
0:48:43 > 0:48:48with a view to achieving just below the stamp duty threshold at £250,000.
0:48:48 > 0:48:51I would market it at £259,000.
0:48:51 > 0:48:54Those valuations could give them a profit
0:48:54 > 0:48:59of between £24,000 and £33,000, minus tax and expenses.
0:48:59 > 0:49:02- Yeah, that's about what we thought, isn't it?- Yeah.
0:49:02 > 0:49:06We've had a couple of estate agents in that have given us valuations of 265, 275
0:49:06 > 0:49:09with looking at a resale of around about the 250 mark.
0:49:09 > 0:49:11It's exactly what we thought, to be honest with you, yeah.
0:49:11 > 0:49:15It's a good start for the first-timers and Paul and Fran plan to sell,
0:49:15 > 0:49:21but the estate agents reckon the flat could rent for £1,300 per calendar month,
0:49:21 > 0:49:25which could earn them an annual yield of just under 7%.
0:49:25 > 0:49:26How does that sound?
0:49:26 > 0:49:28- That's more than what we thought, actually.- Yeah.
0:49:28 > 0:49:34We was looking between 11, 1,150, so 1,300, yeah, very pleased with that.
0:49:35 > 0:49:39The couple should be pleased with how this flat has finally turned out.
0:49:39 > 0:49:41They were also hoping that the sale of this place will fund
0:49:41 > 0:49:46their next renovation development, which hopefully will be soon.
0:49:46 > 0:49:47- We would do it again, yeah.- Yeah.
0:49:47 > 0:49:51We've learnt a hell of a lot from doing this and it would just be a shame
0:49:51 > 0:49:53- not to put that knowledge into another project.- Yeah.
0:49:53 > 0:49:54Yeah, I've enjoyed it.
0:49:54 > 0:49:58Ups and downs, but overall, I want to crack on with the next one now.
0:50:04 > 0:50:06Back now to the Manchester suburb of Denton,
0:50:06 > 0:50:08an area once famous for hat making.
0:50:08 > 0:50:11# You can leave your hat on... #
0:50:12 > 0:50:14And it was hats off to Mark and his wife, Nicky,
0:50:14 > 0:50:19who paid £40,500 for this former jeweller's shop.
0:50:19 > 0:50:22# ..You can leave your hat on. #
0:50:22 > 0:50:24Mark's a self-employed gas fitter
0:50:24 > 0:50:28and Nicky's training to be a nutritional coach.
0:50:28 > 0:50:31They plan to ring the changes on the former jeweller's
0:50:31 > 0:50:33and convert it into a health and beauty business
0:50:33 > 0:50:37so Nicky wouldn't have to spend so much time travelling.
0:50:37 > 0:50:39Tell me about your business.
0:50:39 > 0:50:44I work in the health industry, nutrition, sports...
0:50:44 > 0:50:48- Oh.- ..energy levels, things like that.
0:50:48 > 0:50:50Where do you work from at the moment?
0:50:50 > 0:50:53- From home, I go to people's houses.- Right.
0:50:53 > 0:50:55But I'll have a clinic and do it from there.
0:50:55 > 0:50:58The sparkle had definitely gone from the former jeweller's.
0:50:58 > 0:51:02The couple reckoned four to five months would be necessary
0:51:02 > 0:51:04for the work and a budget of £10,000.
0:51:06 > 0:51:09It's now just over five months later.
0:51:09 > 0:51:12The shutters have gone and the tarnished jeweller's shop
0:51:12 > 0:51:13has polished up beautifully.
0:51:15 > 0:51:19The only CARATS now are in health drinks.
0:51:19 > 0:51:22Upstairs, the former front living room has been divided
0:51:22 > 0:51:26into two treatment rooms - one for a tanning bed,
0:51:26 > 0:51:28the other for spray tans.
0:51:31 > 0:51:35There is another treatment room at the back of the first floor.
0:51:36 > 0:51:39The property needed a lot of building work before it could
0:51:39 > 0:51:41have any cosmetic treatment.
0:51:41 > 0:51:43We really started with the major stuff,
0:51:43 > 0:51:48the chimney's come down and then we realised this floor that we're on,
0:51:48 > 0:51:50that had to come out, a new joist go in.
0:51:50 > 0:51:52The same with the ceilings.
0:51:52 > 0:51:56It took us an extra six weeks, I think, than what we first planned.
0:51:56 > 0:51:59Originally, it was a living room. It was a flat up here.
0:51:59 > 0:52:03I've got a sunbed room and a stand-up so, obviously,
0:52:03 > 0:52:07it needs privacy and, obviously, a waiting area out here as well.
0:52:08 > 0:52:10Turn left at the top of the stairs...
0:52:12 > 0:52:15..and the former bathroom, at the back of the house,
0:52:15 > 0:52:16is now a loo and shower room.
0:52:18 > 0:52:21Down on the ground floor, behind the staircase, there's an office
0:52:21 > 0:52:23and more storage.
0:52:24 > 0:52:28Mark's a qualified gas fitter and has done a lot of the work himself,
0:52:28 > 0:52:30bringing in tradespeople when required.
0:52:31 > 0:52:34The windows have been replaced throughout
0:52:34 > 0:52:37but the rear of the property still needs tidying up.
0:52:37 > 0:52:39It's a safe bet that will be done very soon.
0:52:41 > 0:52:45How has the budget fared? Did they stick to their predicted £10,000?
0:52:46 > 0:52:49We have gone slightly over on the budget
0:52:49 > 0:52:54but there was a fair bit more work than we had initially anticipated.
0:52:54 > 0:52:58So, all in all, we have spent around about 13,700.
0:52:58 > 0:53:02With the £40,500 they spent at auction,
0:53:02 > 0:53:06that takes their total investment to £54,200.
0:53:06 > 0:53:09# Now that you've gone
0:53:09 > 0:53:14# All that's left is a band of gold... #
0:53:14 > 0:53:17Now, be honest, guys, did you find any old rings or watches
0:53:17 > 0:53:20- when you were doing the refurbishment?- No, we didn't.
0:53:20 > 0:53:24- Absolutely nothing.- No, unfortunately.- Not a thing.
0:53:24 > 0:53:26No, we did look hard though!
0:53:26 > 0:53:30Even under the floor.
0:53:30 > 0:53:33Well, no gold or silver found but this property has been
0:53:33 > 0:53:36turned around into a real sparkler.
0:53:36 > 0:53:41Now it's finished, what benefits does Nicky see her new premises bringing her?
0:53:41 > 0:53:46I think, obviously, it's a lot more professional working actually from a premises
0:53:46 > 0:53:50rather than going to people's houses and creating a nice atmosphere to do it in,
0:53:50 > 0:53:55which helps when, obviously, you're dealing with customers.
0:53:55 > 0:53:58Time to get advice from two local property experts.
0:53:58 > 0:54:00What will they think of Nicky and Mark's
0:54:00 > 0:54:02re-energised property?
0:54:02 > 0:54:04First impressions are good.
0:54:04 > 0:54:06They've made a nice job of the refurbishment.
0:54:06 > 0:54:09There are one or two small bits and bobs of finishing touches required.
0:54:09 > 0:54:12I'm sure they're going to take care of them but I think they made a nice job of it.
0:54:12 > 0:54:15The owners have made a really good job of the refurbishment.
0:54:15 > 0:54:18It's clean, modern and suitable for a variety of uses
0:54:18 > 0:54:23but particularly useful and attractive for anyone in the hairdressing or beauty industry.
0:54:24 > 0:54:27How much could the place now be worth?
0:54:27 > 0:54:32More than the £54,200 Nicky and Mark have invested?
0:54:32 > 0:54:35If I was putting this property on the market for sale in its current condition,
0:54:35 > 0:54:39I would expect to achieve in the region of £75,000.
0:54:39 > 0:54:42I believe if the property was to be sold for someone for their own business use,
0:54:42 > 0:54:46it would have a value in the region of £75,000.
0:54:46 > 0:54:51So a profit of £20,800 before tax and expenses.
0:54:54 > 0:54:58- Probably a little bit low. - Than we thought, it's fine.
0:54:58 > 0:55:00- I'm quite pleased with that.- Yeah.
0:55:01 > 0:55:06What rental income could it generate in its current commercial configuration?
0:55:06 > 0:55:09As a commercial property for rental, I would expect to achieve
0:55:09 > 0:55:13between £650 and £700 a month for the whole property.
0:55:13 > 0:55:17That's a healthy rental yield of 14%
0:55:17 > 0:55:19but these are tough times for everyone
0:55:19 > 0:55:22so if Nicky finds the beauty business isn't booming,
0:55:22 > 0:55:25could that upstairs area offer an alternative income to
0:55:25 > 0:55:28supplement her nutritional business?
0:55:30 > 0:55:33If the property was rented as a shop on the ground floor
0:55:33 > 0:55:35and as an apartment on the first floor,
0:55:35 > 0:55:38the rental income would be potentially higher.
0:55:38 > 0:55:41It would be in the region of £800 per calendar month
0:55:41 > 0:55:45and the value of the property would be as much as £90,000.
0:55:45 > 0:55:48If the ground floor was commercial and the first floor was residential,
0:55:48 > 0:55:53the income would probably increase to something in the region of £800-£850 per calendar month.
0:55:53 > 0:55:56That combined commercial and residential income
0:55:56 > 0:55:59would generate a yield of 17 to over 18.5%,
0:55:59 > 0:56:04something for Nicky and Mark to consider?
0:56:04 > 0:56:07- Yeah, it might be worth... - At least we know what we are doing!
0:56:07 > 0:56:10At least we know what we're doing if it doesn't work out.
0:56:10 > 0:56:14- It'll probably be a small conversion to do that.- Quite easy.
0:56:14 > 0:56:16But we'll give the business a go first.
0:56:16 > 0:56:19THEY LAUGH
0:56:19 > 0:56:21There's less than a day to go until the premises
0:56:21 > 0:56:24have their official opening, so how's Nicky feeling?
0:56:26 > 0:56:28Tired, but excited.
0:56:28 > 0:56:30Obviously, I've a lot to do business wise,
0:56:30 > 0:56:35a lot of organising and advertising, things like that, to get my customers in.
0:56:35 > 0:56:38- But yeah, full steam ahead.- Mmm.
0:56:38 > 0:56:40And what's next for Mark?
0:56:40 > 0:56:45Go back to work! Full-time and start getting some money back in.
0:56:49 > 0:56:53We'll have plenty more tales from the auction rooms for you next time.
0:56:53 > 0:56:56Make sure you join us then for the stories, the highs and the lows.
0:56:56 > 0:56:58- See you.- Goodbye.- Goodbye.
0:57:19 > 0:57:22Subtitles by Red Bee Media Ltd