0:00:02 > 0:00:04- Hello. Welcome to the show. - We've been dealing in property
0:00:04 > 0:00:06for many years now, and we've witnessed
0:00:06 > 0:00:07the fluctuations in the market.
0:00:07 > 0:00:10But through it all, one thing you can be certain of is you can
0:00:10 > 0:00:14always get some intriguing properties at the auction!
0:00:14 > 0:00:19MUSIC: "Homes Under The Hammer Theme"
0:00:40 > 0:00:42Well, we've always been fascinated by buying properties
0:00:42 > 0:00:44under the hammer.
0:00:44 > 0:00:46Yes, the speed, the excitement,
0:00:46 > 0:00:49and the potential to bag a bargain are really attractive.
0:00:49 > 0:00:53So, what's got people hot under the collar on today's show?
0:00:54 > 0:00:57How do you fancy a commercial property
0:00:57 > 0:01:01in trendy Battersea, London? Auction guide price, £190,000.
0:01:01 > 0:01:03Could it be someone's home?
0:01:04 > 0:01:06What about this three-bed
0:01:06 > 0:01:09end-of-terrace in County Durham for around 35 grand?
0:01:09 > 0:01:12Bear in mind, there's a strong rental market in the area!
0:01:14 > 0:01:19Or this development opportunity in South Wales, guided at 110 grand.
0:01:19 > 0:01:23We first visited the site six years ago. But what's there now?
0:01:25 > 0:01:27All of these properties have been sold at auction.
0:01:27 > 0:01:30We'll find out who bought them and what they paid for them
0:01:30 > 0:01:31when they went under the hammer!
0:01:31 > 0:01:33It's yours, Sir, thank you very much.
0:01:36 > 0:01:40Battersea is one of the most popular areas in South West London, so
0:01:40 > 0:01:43not the kind of place you'd usually expect to find a property bargain.
0:01:48 > 0:01:50But amongst all this loveliness, I think
0:01:50 > 0:01:54we may have lucked out and found something rather tantalising!
0:01:55 > 0:01:58You might think I'm in a residential spot
0:01:58 > 0:02:00due to the properties around me but, actually,
0:02:00 > 0:02:03at the end of this road you've got a lovely row
0:02:03 > 0:02:05of independent shops and cafes.
0:02:05 > 0:02:08Today, I'm not viewing a house or a flat.
0:02:08 > 0:02:12No, the property I'm here to see is on the corner here.
0:02:12 > 0:02:18It's a former office premises which had a guide price of £190,000.
0:02:18 > 0:02:22Intrigued? And interested? I am! I'm going to have a look inside.
0:02:25 > 0:02:29Well, this is a really bright, light, pleasant space to walk into.
0:02:29 > 0:02:34And what lovely balustrades. Look! How gorgeous!
0:02:34 > 0:02:36There's a certain amount of character in here.
0:02:36 > 0:02:40You've got that wonderful big window which lets in so much light.
0:02:40 > 0:02:42All of this space here.
0:02:42 > 0:02:45It looks like it's been recently painted as well.
0:02:45 > 0:02:50A bit of storage space. Oh, every bit of space in London counts!
0:02:50 > 0:02:52So, you know, it's good you've got that!
0:02:52 > 0:02:55Downstairs, you've got a little loo and a sink area.
0:02:55 > 0:02:58So once you've got over the fact that you're in a fantastic area,
0:02:58 > 0:03:02you've got a lovely space to work in. I'm now going to tell you,
0:03:02 > 0:03:05ha-ha, there's a basement downstairs as well!
0:03:07 > 0:03:10On this floor, there are almost 200 square feet of space.
0:03:10 > 0:03:15Not huge, but it will certainly make a bright and pleasant place to work.
0:03:17 > 0:03:21Downstairs is a bit bigger. Almost 300 square feet.
0:03:21 > 0:03:23And while not all of it is full height,
0:03:23 > 0:03:26it's a very attractive space.
0:03:26 > 0:03:29One potential stumbling block here is that the property is
0:03:29 > 0:03:33leasehold and there are only 74 years left on the lease.
0:03:33 > 0:03:36That may cause problems if you want to take out a mortgage.
0:03:36 > 0:03:40So, it might not be cheap, but I'd look into extending that lease
0:03:40 > 0:03:45if possible. On the outside, well, it looks as though it could do with
0:03:45 > 0:03:48a bit of a freshen up if it's to be an eye-catching shop front.
0:03:48 > 0:03:52But there is parking allocated for two cars here and the fact that
0:03:52 > 0:03:55there's a flat above, which is not part of the auction lot,
0:03:55 > 0:03:57has set my mind racing.
0:03:59 > 0:04:02So, what are our options here?
0:04:02 > 0:04:06Well, this might not be the busiest Battersea spot,
0:04:06 > 0:04:08but there's certainly passing footfall
0:04:08 > 0:04:12and I think it could appeal to a more independent niche market.
0:04:12 > 0:04:14Perhaps a gift shop, a clothing store,
0:04:14 > 0:04:17or a sandwich bar would work well here.
0:04:17 > 0:04:20Or, now, what about applying for planning permission
0:04:20 > 0:04:22and creating a one-bedroom flat here?
0:04:22 > 0:04:25You could have the lounge, kitchen and bathroom up there,
0:04:25 > 0:04:28with this basement as a bedroom.
0:04:28 > 0:04:30There's already a flat above us in this building,
0:04:30 > 0:04:34and plenty of residential accommodation all around us.
0:04:34 > 0:04:38So I don't think this would be out of place, or out of the question.
0:04:38 > 0:04:40Now that is exciting me!
0:04:42 > 0:04:44There certainly are options here.
0:04:44 > 0:04:47We asked a local expert for his thoughts on this property
0:04:47 > 0:04:50and its £190,000 plus guide price.
0:04:50 > 0:04:52What would HE do with the place?
0:04:55 > 0:04:56As a long-term investment, I'd convert it
0:04:56 > 0:04:59into a one-bedroom flat. It will rent all day long.
0:04:59 > 0:05:02Ha! A man after my own heart!
0:05:02 > 0:05:04And if you did convert it into a one-bedroom flat?
0:05:04 > 0:05:07What might it be worth then?
0:05:07 > 0:05:10Converting into a one-bedroom flat, it would be a quite quirky one-bedroom flat.
0:05:10 > 0:05:12I think that would work for it where it's located.
0:05:12 > 0:05:16So I think you would be looking to achieve around £300,000.
0:05:16 > 0:05:19And if you rented it out as a flat?
0:05:19 > 0:05:23I believe it will achieve between £1,000 per calendar month
0:05:23 > 0:05:25to £1,200 per calendar month.
0:05:26 > 0:05:29If you kept it as a commercial premises,
0:05:29 > 0:05:32what kind of rent might it achieve then?
0:05:32 > 0:05:37I think you'd be looking somewhere between the £1,500 to £2,000
0:05:37 > 0:05:39per annum, in terms of rent.
0:05:41 > 0:05:43This property is situated on a corner spot,
0:05:43 > 0:05:46which straddles both a residential and a commercial road.
0:05:46 > 0:05:48Which route do you take?
0:05:48 > 0:05:51Well, there's certainly a couple of options to consider here.
0:05:51 > 0:05:52Let's head to the auction
0:05:52 > 0:05:56and find out who was ready to take on this dilemma!
0:05:58 > 0:06:03Move on now to lot 114. Office premises with car parking.
0:06:03 > 0:06:08200 anywhere? If not, you tell me.
0:06:08 > 0:06:11What about 170, then? 170 I've got.
0:06:11 > 0:06:14Thank you. £170,000.
0:06:14 > 0:06:17On my left. Anybody else?
0:06:17 > 0:06:20171. 172.
0:06:20 > 0:06:23173. 174.
0:06:23 > 0:06:26- The bidding started slowly...- 185.
0:06:26 > 0:06:30..but it did keep on creeping up past the guide price...
0:06:30 > 0:06:33190. 190.
0:06:33 > 0:06:36191. 191.
0:06:36 > 0:06:38..and it kept going.
0:06:38 > 0:06:43- 216. - We rejoin the action at £250,000.
0:06:43 > 0:06:48Bid's £250,000. It's against the gentleman standing up.
0:06:48 > 0:06:53So lot 114, bid's £250,000. Anybody else?
0:06:54 > 0:06:57If not, 250 for the first...
0:06:57 > 0:07:00250 for the second... I knew you'd be back!
0:07:00 > 0:07:03251. Back in, nearly.
0:07:03 > 0:07:06252. 253.
0:07:06 > 0:07:09254. 255.
0:07:09 > 0:07:11256. 257.
0:07:14 > 0:07:19No? OK. It's with you, sir. Bid's £256,000.
0:07:19 > 0:07:23It's against the lady and gentleman in the front. Anybody else?
0:07:23 > 0:07:28If not, 256 for the first... 256 for the second...
0:07:28 > 0:07:31256 for the third and final time...
0:07:31 > 0:07:35All done? Sold! 256,000.
0:07:35 > 0:07:41That successful bid of 256,000 was placed by Louis, who lives locally.
0:07:43 > 0:07:46He runs a company which designs and manufactures furniture
0:07:46 > 0:07:48and other objects made of metal.
0:07:48 > 0:07:50His wife Maggie works in publishing
0:07:50 > 0:07:55and their son James has shown an interest in working with jewellery.
0:07:55 > 0:07:58I met them at the property to hear about their plans.
0:07:58 > 0:07:59First up, Mum and Dad.
0:08:02 > 0:08:05Louis and Maggie, it's great you could join me today here. Well done.
0:08:05 > 0:08:09Congratulations. Are you thrilled that you got this on auction day?
0:08:09 > 0:08:11Yeah. A little bit surprised as well.
0:08:11 > 0:08:14I've never bought a property at auction before! It's very...
0:08:14 > 0:08:18- My heart was sort of pounding away! - So, you really wanted this?- Yes.
0:08:18 > 0:08:19Who spotted it?
0:08:19 > 0:08:22- Well, the hairdresser over the road! - Oh, what's the story?
0:08:22 > 0:08:25Yeah, well, she basically has been looking for somewhere for us and
0:08:25 > 0:08:27a place came up before and she said,
0:08:27 > 0:08:29"Well, you know, this place is up for auction." This was on Saturday.
0:08:29 > 0:08:33So I rang the estate agent. There was a viewing in 15 minutes!
0:08:33 > 0:08:35Amazing, I know! And then the auction was on Monday.
0:08:35 > 0:08:37So, you'd literally popped over there for a set of highlights
0:08:37 > 0:08:40- and that was it?! - Yeah, that was it! Absolutely, yeah.
0:08:40 > 0:08:43So, the big question is, what are you going to do with it?
0:08:43 > 0:08:44Why have you bought it?
0:08:44 > 0:08:47We're going to make it a jewellery shop upstairs and furniture
0:08:47 > 0:08:49and other things downstairs. That's the idea.
0:08:49 > 0:08:51So, what's your involvement with this?
0:08:51 > 0:08:55Well, I make metal furniture anyway, so as the space is quite big,
0:08:55 > 0:08:58it sort of made sense for me to put some pieces in there.
0:08:58 > 0:09:00It started off as a jewellery shop concept,
0:09:00 > 0:09:04but we've got a whole downstairs area, so I'm going to be
0:09:04 > 0:09:07putting in tables, chairs, lamps, one-off pieces.
0:09:07 > 0:09:09We'll have to see!
0:09:09 > 0:09:11# There will be tables and chairs
0:09:11 > 0:09:13# There'll be pony rides and dancing bears
0:09:13 > 0:09:15# There'll even be a band... #
0:09:17 > 0:09:20So Louis's furniture and metal pieces will grace the basement,
0:09:20 > 0:09:24and upstairs will become a jewellery shop.
0:09:24 > 0:09:26Louis will design and make some of the jewellery,
0:09:26 > 0:09:29but most of the decisions about those creations will be
0:09:29 > 0:09:32made by their 23-year-old son, James.
0:09:32 > 0:09:34He'll run the shop.
0:09:34 > 0:09:35I mean, he didn't know what he wanted to do.
0:09:35 > 0:09:38He got a job in sales and marketing.
0:09:38 > 0:09:41That sort of went pear-shaped and he said, "Oh, I'm really..."
0:09:41 > 0:09:43Actually, I took him to Birmingham Spring Fair.
0:09:43 > 0:09:45And he had a look around and the only thing
0:09:45 > 0:09:47he was interested in was jewellery. So that's how it started.
0:09:47 > 0:09:50How do you think James is going to feel running this business?
0:09:50 > 0:09:53Getting up every day, stock-taking, being in charge of the shop?
0:09:53 > 0:09:55Think it's going to be a bit of a shock to the system?
0:09:55 > 0:09:57It is going to be a wake-up call, I think!
0:09:57 > 0:09:59It should be very interesting to see how he copes with it.
0:09:59 > 0:10:01He does three days a week, at the moment,
0:10:01 > 0:10:04in our little workshop where we make the jewellery.
0:10:04 > 0:10:06And he finds that, you know, a lot!
0:10:06 > 0:10:08- Oh, he'll be fine. - He'll be fine, yeah.
0:10:08 > 0:10:10I mean, it's a wonderful thing you've done for him
0:10:10 > 0:10:11and it really is...
0:10:11 > 0:10:14I love this place as a shop, I think it's fabulous.
0:10:14 > 0:10:15Are you going to make any changes?
0:10:15 > 0:10:19One thing I'm going to do is get rid of this hideous wooden banister.
0:10:19 > 0:10:22- Oh, I quite like that!- You don't?! - Do you think that's hideous?
0:10:22 > 0:10:24- Say that again! - I don't mind that. I think that's...
0:10:24 > 0:10:26you know, got lots of character. I quite like it!
0:10:26 > 0:10:28- Trust me, it's hideous.- Really?
0:10:28 > 0:10:30It is fake old, though, it's not really...
0:10:30 > 0:10:32You could turn it into something beautiful.
0:10:32 > 0:10:34I'm sure that is a speciality of yours, isn't it?
0:10:34 > 0:10:36Well, I do do staircases.
0:10:36 > 0:10:40I don't do as many as I used to, but I obviously can do.
0:10:40 > 0:10:44I just did a bronze handrail staircase in North London recently.
0:10:44 > 0:10:46Which I said I'd never do again, but anyway...
0:10:46 > 0:10:48And having done that, I thought it would be lovely
0:10:48 > 0:10:50if we had a brass handrail and everything.
0:10:50 > 0:10:53Anyway, I was looking around the factory
0:10:53 > 0:10:56and there's this bit of old, reclaimed brass which I'd
0:10:56 > 0:10:58completely forgotten where it came from.
0:10:58 > 0:11:00And it's absolutely perfect, you'll see.
0:11:00 > 0:11:04It's a great big thick, chunky, brass handrail from...
0:11:04 > 0:11:05- So, that's going?- That's going.
0:11:05 > 0:11:08- And a beautiful brass handrail will be in its place?- It will.
0:11:08 > 0:11:10- Oh, I can't wait to see that! - And glass finials.
0:11:10 > 0:11:12Oh, I can't wait to see that!
0:11:12 > 0:11:13And someone's going to have to polish it!
0:11:13 > 0:11:16OK, yeah, that is hideous, yeah! OK! So, what's the budget, then?
0:11:16 > 0:11:18How much are you going to spend?
0:11:18 > 0:11:21- Our target is £20,000, but we don't know if that's realistic or not.- OK.
0:11:21 > 0:11:23- Of course the brass handrail is free.- OK!
0:11:23 > 0:11:25And that's going to be the best bit of the whole shop!
0:11:25 > 0:11:28And all the metal stock is free and...
0:11:31 > 0:11:33Louis and Maggie hope to have the shop up and running,
0:11:33 > 0:11:37complete with the new balustrade, in just ten weeks' time.
0:11:37 > 0:11:40Hopefully, there won't be too many obstacles in the way!
0:11:40 > 0:11:43So, have you read the legal pack? Have you got any issues with this?
0:11:43 > 0:11:46Yes, there was a weird thing, actually, when we saw it,
0:11:46 > 0:11:48that basically there were service charges,
0:11:48 > 0:11:50and the lawyer asked for clarification,
0:11:50 > 0:11:51but we haven't received it yet.
0:11:51 > 0:11:54So there is an annual service charge and repairs.
0:11:54 > 0:11:56OK, so there could be a bit of a black cloud looming
0:11:56 > 0:11:58over your heads with the unpaid service charges?
0:11:58 > 0:12:01- Well, that's right.- Is that something that's worrying you?
0:12:01 > 0:12:02Well, a little bit.
0:12:02 > 0:12:05Because I said to her, "Well, you know, presumably if it's already been
0:12:05 > 0:12:08"done, we wouldn't be liable." And she said, "Well, no, not necessarily.
0:12:08 > 0:12:11"It depends on the period of, you know, charges on the lease."
0:12:11 > 0:12:13It's an old property here, so the roof, for example.
0:12:13 > 0:12:15Yeah. And the outside's just been done.
0:12:15 > 0:12:17- So, you've yet to find out? - Yes.- Yeah.
0:12:19 > 0:12:22Well, fingers crossed it all checks out OK
0:12:22 > 0:12:25and they're not stung for a big bill.
0:12:25 > 0:12:28So, if dad Louis is going to be working downstairs, what
0:12:28 > 0:12:32about their son James, who'll be running the jewellery shop upstairs?
0:12:34 > 0:12:36- James, congratulations!- Thank you.
0:12:36 > 0:12:38- This is exciting times ahead for you!- It is, it's really good.
0:12:38 > 0:12:42- Very exciting.- So, how do you feel about running your own shop?
0:12:42 > 0:12:44- Your own business?- It's going to be a lot more responsibility.
0:12:44 > 0:12:47I'm really excited, though. Going to give it my all.
0:12:47 > 0:12:49So, what's the feel of the shop going to be like?
0:12:49 > 0:12:50Well, round at the back,
0:12:50 > 0:12:53it's going to be sort of a very old-fashioned, I think.
0:12:53 > 0:12:55It's going to have some really cool little things, you know,
0:12:55 > 0:12:58like mannequins with the jewellery being showcased on.
0:12:58 > 0:13:00It's going to have a nice vibe to it, you know.
0:13:00 > 0:13:02It's not going to be really flashy and in-your-face.
0:13:02 > 0:13:04So I think it's going to be really cool.
0:13:04 > 0:13:06Are you actually going to be designing the jewellery?
0:13:06 > 0:13:08Or just choosing the pieces?
0:13:08 > 0:13:09I think I will have some design input,
0:13:09 > 0:13:11but I think mainly I'm just going to be the sales.
0:13:11 > 0:13:14So, anything I can think of that might help, you know.
0:13:14 > 0:13:15What are you most looking forward to?
0:13:15 > 0:13:18Yeah, just getting used to a bit more independence, you know.
0:13:18 > 0:13:19More responsibility.
0:13:19 > 0:13:21James, good luck with this project
0:13:21 > 0:13:24- and I'm sure it's going to be a winner. Well done.- Thank you.
0:13:24 > 0:13:26Well, I think this really is a priceless
0:13:26 > 0:13:30opportunity for Maggie, Louis and son James.
0:13:30 > 0:13:33What a worthwhile, if expensive, haircut that was for Maggie!
0:13:33 > 0:13:35I've got everything crossed for the family
0:13:35 > 0:13:39and I hope they make a real "gem" of their business here!
0:13:39 > 0:13:41But I am concerned that their experience may be
0:13:41 > 0:13:45tarnished by those unpaid service charges.
0:13:45 > 0:13:49You can join me later on in the show to find out how they all get on.
0:13:52 > 0:13:57I'm in Beamish in Country Durham, halfway between Durham itself
0:13:57 > 0:14:01and Newcastle. A great spot, lovely surroundings.
0:14:01 > 0:14:05And this is the Beamish Open Air Museum, a testament to
0:14:05 > 0:14:10a bygone age of manufacturing, farming, and British artisanship.
0:14:12 > 0:14:15Well, the Beamish Museum may be all about what life
0:14:15 > 0:14:18was like in the past...
0:14:18 > 0:14:21# Life in a northern town... #
0:14:22 > 0:14:24..but I'm more interested in the present today.
0:14:24 > 0:14:28And just three miles away in the town of Stanley is the house
0:14:28 > 0:14:29I've come to see.
0:14:31 > 0:14:36Well, walk down any terraced street and before long,
0:14:36 > 0:14:38you come to the end-of-terrace. No surprises there.
0:14:38 > 0:14:39This one, however,
0:14:39 > 0:14:43had the most precise guide price I've ever heard in an auction.
0:14:43 > 0:14:46£34,950.
0:14:48 > 0:14:51It's nice to see the little porch there.
0:14:51 > 0:14:54Keeps the cold and the weather out.
0:14:54 > 0:14:58And then through into a surprisingly big front room.
0:14:58 > 0:14:59Stairs up to your bedrooms
0:14:59 > 0:15:02and then through into a rear sitting room and kitchen.
0:15:02 > 0:15:03Looks good!
0:15:05 > 0:15:07Well, that is, at first glance.
0:15:07 > 0:15:11It's one of those things, you sort of start probing around a bit
0:15:11 > 0:15:14and things like the laminate flooring coming up.
0:15:14 > 0:15:17A bit of an alternative... Oops, hello!
0:15:17 > 0:15:18HE COUGHS
0:15:18 > 0:15:22Yeah... Erm, having said that,
0:15:22 > 0:15:24it's not in bad condition.
0:15:24 > 0:15:27I mean, obviously, reasonably new units.
0:15:27 > 0:15:31But a good-sized space, through to your bathroom and loo
0:15:31 > 0:15:32at the end there.
0:15:32 > 0:15:34You know what? I'm not going to be put off by this.
0:15:34 > 0:15:37It's still a really great start and a lot of house for the money.
0:15:39 > 0:15:41If your budget's tight,
0:15:41 > 0:15:44you could probably hold on to the suite in the bathroom downstairs.
0:15:44 > 0:15:47But it would be a good idea to tidy up the tiling, flooring
0:15:47 > 0:15:48and overall finish.
0:15:50 > 0:15:53In the kitchen, the boiler looks to be quite new.
0:15:53 > 0:15:55And again, rather than ripping it all out,
0:15:55 > 0:15:59just a few finishing touches would work wonders.
0:15:59 > 0:16:02# Come back and finish what you started!
0:16:02 > 0:16:04# Uh huh
0:16:04 > 0:16:05# Don't leave me hanging on
0:16:05 > 0:16:07- # Hanging on - Hanging on
0:16:07 > 0:16:10# Come back and finish what you started!
0:16:10 > 0:16:11# No, no, no, no
0:16:11 > 0:16:13# Don't leave me hanging on.. #
0:16:13 > 0:16:17So upstairs, and am I about to discover something which
0:16:17 > 0:16:18makes me go, "Oh, no!
0:16:18 > 0:16:21"Don't touch this with a bargepole!"?
0:16:21 > 0:16:22INHALES SHARPLY
0:16:22 > 0:16:26No! Actually, it carries on being really, really nice.
0:16:26 > 0:16:27I mean, it's not a big property,
0:16:27 > 0:16:30so the bedrooms aren't absolutely massive. But pretty decent.
0:16:30 > 0:16:33One at the back there and then two at the front.
0:16:33 > 0:16:37And that's it. It's in half-decent condition.
0:16:37 > 0:16:40You could, if you wanted to, rent it out pretty much as it is.
0:16:40 > 0:16:45That guide price is so low. Rents around here pretty good.
0:16:45 > 0:16:47It's a no-brainer!
0:16:47 > 0:16:50Yes, unless there really is something horrible lurking under
0:16:50 > 0:16:54the floorboards, this has all the makings of a terrific buy-to-let.
0:16:54 > 0:16:58MUSIC: "Daddy Cool" Boney M
0:17:00 > 0:17:01As it doesn't need much work,
0:17:01 > 0:17:05just a little expenditure on an upgrade, then with its rather
0:17:05 > 0:17:12exact guide price of £34,950, this seems a perfect investment property.
0:17:12 > 0:17:14Well, come round to the back
0:17:14 > 0:17:17and it suddenly starts to make sense why the property feels
0:17:17 > 0:17:20so much bigger inside than you might expect from its frontage.
0:17:20 > 0:17:23This big single-storey extension at the back here,
0:17:23 > 0:17:25which houses the kitchen and the bathroom and the toilet.
0:17:25 > 0:17:27Now, it is single-storey.
0:17:27 > 0:17:30It has got a flat roof, which might be an issue.
0:17:30 > 0:17:34However, it looks like that's been recently redone, which is good news.
0:17:34 > 0:17:37In fact, it's all good news!
0:17:37 > 0:17:38# Give me some good news!
0:17:38 > 0:17:40# Good, good, good
0:17:40 > 0:17:41# Give me some good news... #
0:17:41 > 0:17:43So, it just keeps getting better.
0:17:43 > 0:17:44# ..Good, good, good news! #
0:17:46 > 0:17:49Perhaps the one disappointment is the lack of outside space
0:17:49 > 0:17:52and I would prefer the bathroom upstairs.
0:17:52 > 0:17:55But, all in all, this has a lot going for it.
0:18:00 > 0:18:04What does a local estate agent make of what's on offer here?
0:18:06 > 0:18:07It's a decent house.
0:18:07 > 0:18:10There's not really a great deal of work to do here, I think,
0:18:10 > 0:18:12to get it to a good standard,
0:18:12 > 0:18:13either for resale or to let.
0:18:13 > 0:18:18There are one or two areas that need to be looked at, I think.
0:18:18 > 0:18:20Such as perhaps renewing the bathroom,
0:18:20 > 0:18:23some of the double-glazed windows need to be replaced.
0:18:23 > 0:18:25And there's a little bit of work to do externally on the back
0:18:25 > 0:18:26of the property.
0:18:26 > 0:18:30A bit of pointing and the coping stones I think on the corner.
0:18:30 > 0:18:33But overall, it's a decent house, a nice end-terrace.
0:18:33 > 0:18:35And I think it should be a good buy for somebody.
0:18:37 > 0:18:41Yes, my thoughts exactly. Well, what about the numbers?
0:18:41 > 0:18:46Could you see much of a return on a house guided at £34,950?
0:18:49 > 0:18:52Once the few minor repairs are made to the property,
0:18:52 > 0:18:55I would then consider putting it back onto the market for resale.
0:18:55 > 0:18:58Somewhere in the region of £50-£55,000.
0:18:59 > 0:19:01So, potentially some profit, if sold on.
0:19:01 > 0:19:06But it's on the rental market where I think this house will score well.
0:19:06 > 0:19:09If somebody were to look to buy this to rent out, I would expect to
0:19:09 > 0:19:13achieve somewhere in the region of £400-£425 a calendar month.
0:19:15 > 0:19:16Well, on so many levels,
0:19:16 > 0:19:20this little terraced house in the Northeast stacks up.
0:19:20 > 0:19:22Let's see who agreed when it went under the hammer.
0:19:24 > 0:19:25Lot number seven.
0:19:25 > 0:19:28Three-bed end-terrace house.
0:19:28 > 0:19:30Any bid at 30,000?
0:19:30 > 0:19:33Gentleman standing, £30,000.
0:19:33 > 0:19:36We're up and going at 30,000, right in the centre. 31 anywhere else?
0:19:36 > 0:19:4131,000 bid. 32? 32 bid. 33?
0:19:41 > 0:19:4633 bid. 34? 43 bid. 35? 35 bid.
0:19:46 > 0:19:4836? 36 bid.
0:19:48 > 0:19:5337? The gentleman in the centre, standing. At £36,000.
0:19:53 > 0:19:56I'm selling at 36,000. I'm going once at 36.
0:19:56 > 0:20:01I'm selling for the second time at £36,000.
0:20:01 > 0:20:03Sold, the gentleman in the centre of the room.
0:20:03 > 0:20:05He was obscured from view there,
0:20:05 > 0:20:10but that successful bid of £36,000 was placed by Les.
0:20:10 > 0:20:12He and his wife Jackie are based in Newcastle
0:20:12 > 0:20:15and have a small portfolio of properties.
0:20:15 > 0:20:18I met them at their new purchase to find out more.
0:20:21 > 0:20:25- Jackie, Les, great to meet you both. Congratulations!- Thanks.
0:20:25 > 0:20:27Tell me why you wanted to buy this place?
0:20:27 > 0:20:31- It was just the opportunity at the auction at the time.- Right.
0:20:31 > 0:20:35It was a good price, reasonable rent income.
0:20:35 > 0:20:39Is this something then you've done a lot of before?
0:20:39 > 0:20:43- Yes. Yeah, I'm a builder to trade. - Oh, OK.- Mostly other people's stuff,
0:20:43 > 0:20:48that's what my living is. But I've done quite a few projects myself.
0:20:48 > 0:20:49Right.
0:20:49 > 0:20:52And what's your involvement in the whole thing, Jackie?
0:20:52 > 0:20:56I came to help out in the business with admin and things like that.
0:20:56 > 0:21:00And I quite often help out with colour schemes and choosing
0:21:00 > 0:21:05different bits and pieces, depending on if it's furnished or unfurnished.
0:21:05 > 0:21:08- Yeah.- And what's the idea for it? Is it to do it up and sell it on?
0:21:08 > 0:21:11- Or are you going to rent it out? - Purely to rent it out, yeah.
0:21:11 > 0:21:14Have you had any indication of what you might get, rental-wise?
0:21:14 > 0:21:19I spoke to... A couple of signs up round the streets, so...
0:21:19 > 0:21:21I spoke to a couple.
0:21:21 > 0:21:26For a three-bedroomed, they say about 450, 475.
0:21:26 > 0:21:28I'd be quite happy to get about 400 a month for it.
0:21:28 > 0:21:33- That's an amazing return.- Yeah. Yeah.- Isn't it? Phenomenal return.
0:21:33 > 0:21:36So, Les and Jackie have done their research.
0:21:36 > 0:21:40They knew that, provided they didn't pay too much for it at auction,
0:21:40 > 0:21:43this house would be a very healthy rental vehicle,
0:21:43 > 0:21:46with yields well in excess of 10%.
0:21:47 > 0:21:49So, with Les's experience as a builder,
0:21:49 > 0:21:53finishing off the work here should be pretty straightforward.
0:21:53 > 0:21:55# Easy as pie!
0:21:55 > 0:21:58# There is nothing to it, baby... #
0:21:58 > 0:22:01What are you planning to do to the house?
0:22:01 > 0:22:07Well, first of all, the bathroom needs changing. Tiling.
0:22:07 > 0:22:10I've measured it, and I'd get a shower in there as well.
0:22:10 > 0:22:14Then there's a bit of structural work up on the top wall,
0:22:14 > 0:22:16which isn't a lot,
0:22:16 > 0:22:18but the parapet's peeling away a little bit from the roof.
0:22:18 > 0:22:20So that needs sorted.
0:22:20 > 0:22:23Rebuilding. The floors are...
0:22:23 > 0:22:26There's laminate's been put down on the floors.
0:22:26 > 0:22:29So I just need to check the floors.
0:22:29 > 0:22:31And the central heating, check that out.
0:22:31 > 0:22:34And there's a boiler and stuff, just get that all checked out.
0:22:34 > 0:22:37Decoration's pretty good.
0:22:37 > 0:22:41- Put a wood-burning stove maybe in this dining area.- Oh, nice.
0:22:41 > 0:22:44- But no major changes to the layout? - No, I don't see anything like that.
0:22:44 > 0:22:47So, what's the budget for the renovations?
0:22:47 > 0:22:51- £4,000 to £5,000.- Mm-hm. And that's with you doing most of it yourself?
0:22:51 > 0:22:54- Yeah.- And what about a timescale? - About four to five weeks.
0:22:56 > 0:22:59It's great to hear that they're going to spend some money on it.
0:22:59 > 0:23:02It would have been so, so tempting just to tidy it up,
0:23:02 > 0:23:06sort a few problems, and get it let.
0:23:06 > 0:23:10But these two are no strangers to buying property at auction,
0:23:10 > 0:23:11and not just in the UK.
0:23:13 > 0:23:17- A couple of properties I've bought online at auction.- Online?!
0:23:17 > 0:23:22- In Bulgaria. Just recently.- Right. You bought properties in Bulgaria?
0:23:22 > 0:23:27- Yes.- Online? In auction?- Yes. - So, have you seen them?
0:23:27 > 0:23:31- We have friends out there who went and visited for us.- Right.
0:23:31 > 0:23:33What kind of places are they?
0:23:33 > 0:23:35One's quite a big house, with outbuildings
0:23:35 > 0:23:41- and half an acre of land.- Right. - In quite a nice rural area.- Wow.
0:23:41 > 0:23:44- The other one's a cottage.- Right. - Just under half an acre.
0:23:44 > 0:23:47So, what are you going to do with houses in Bulgaria?!
0:23:47 > 0:23:51Well, the plan is in the future, is for holidays for the family.
0:23:51 > 0:23:56- And do a bit of work there.- Right. - With a bit better weather!
0:23:56 > 0:23:59Well, yes, it's a beautiful country!
0:23:59 > 0:24:00THEY LAUGH
0:24:00 > 0:24:02How much were they, if you don't mind me asking?
0:24:02 > 0:24:06- Erm, the big house was 5,700.- Pounds?
0:24:06 > 0:24:07Pounds.
0:24:07 > 0:24:10And the cottage was £2,000.
0:24:10 > 0:24:13- Right. OK, so if it all went horribly wrong...- Yeah.
0:24:13 > 0:24:17- ..you're not going to lose a fortune.- Mm.
0:24:17 > 0:24:19Well, listen, congratulations. Good luck with it.
0:24:19 > 0:24:21- Thank you very much.- I look forward to seeing how you get on.
0:24:21 > 0:24:23Cheers.
0:24:23 > 0:24:28Well, I think Les and Jackie have done extremely well with this place.
0:24:28 > 0:24:31A good little property, nice location and for that price,
0:24:31 > 0:24:32with that yield...ha!
0:24:32 > 0:24:35You can see how they get on later in the show.
0:24:37 > 0:24:40Coming up, find out how this development opportunity in South Wales
0:24:40 > 0:24:45could become worth almost £900,000.
0:24:47 > 0:24:51We catch up on Les and Jackie's renovation in County Durham.
0:24:51 > 0:24:53Do they realise the full rental potential
0:24:53 > 0:24:55of their three-bed end-terrace?
0:24:58 > 0:24:59But first, to Battersea,
0:24:59 > 0:25:03to see if Louis, Maggie and son James are ready for business.
0:25:03 > 0:25:06Anxious to start, which is a very, you know, very good sign I think.
0:25:09 > 0:25:13We return to Battersea now, and this commercial property.
0:25:13 > 0:25:15Sold.
0:25:15 > 0:25:18It was bought by Louis, for 256,000.
0:25:19 > 0:25:23The plan was for Louis, his wife Maggie and their son James
0:25:23 > 0:25:26all to work together on turning the premises
0:25:26 > 0:25:29into a showcase for Louis's metalwork downstairs,
0:25:29 > 0:25:33whilst upstairs would be a jewellery shop run by James.
0:25:33 > 0:25:36But the piece de resistance would be a balustrade,
0:25:36 > 0:25:37or should that be...
0:25:37 > 0:25:40- FRENCH ACCENT:- ..balustrade, designed by Louis himself.
0:25:41 > 0:25:44I love this place as a shop. I think it's fabulous.
0:25:44 > 0:25:46Are you going to make any changes?
0:25:46 > 0:25:49The one thing I'm going to do is get rid of this hideous wooden...
0:25:49 > 0:25:52- Oh, I quite like that!- You don't?! - Do you think that's hideous?
0:25:52 > 0:25:54- Say that again.- I don't mind that!
0:25:54 > 0:25:56I think that's got lots of character. I quite like it.
0:25:56 > 0:25:59- Trust me, it's hideous. - So, that's going?- That's going.
0:25:59 > 0:26:02- And a beautiful brass handrail will be in its place?- It will.
0:26:02 > 0:26:04- Oh, I can't wait to see that. - With glass finials.
0:26:04 > 0:26:06Oh, I can't wait to see that!
0:26:06 > 0:26:10With an optimistic budget of 20,000, excluding the stair,
0:26:10 > 0:26:12and a ten week timescale,
0:26:12 > 0:26:16it was all systems go to get the shop up and running.
0:26:16 > 0:26:17Three months after our visit,
0:26:17 > 0:26:20we're back to see how they fared.
0:26:22 > 0:26:25# Stop and stare
0:26:25 > 0:26:30# I think I'm moving but I go nowhere
0:26:30 > 0:26:35# Yeah, I know that everyone gets scared
0:26:35 > 0:26:40# But I'll become what I can't be
0:26:40 > 0:26:43# Oh, oh
0:26:43 > 0:26:45# Stop and stare
0:26:45 > 0:26:51# You start to wonder why you're here not there
0:26:51 > 0:26:56# And you'd give anything to get what's fair
0:26:56 > 0:27:00# But fair ain't what you really need
0:27:00 > 0:27:05# Oh, oh, can you see what I've seen? #
0:27:05 > 0:27:10And there it is, staring at you as you walk into the shop,
0:27:10 > 0:27:14the stair that puts the lustre into balustrade.
0:27:14 > 0:27:17Originally, we were just going to take out the wooden balustrades.
0:27:17 > 0:27:19But when we took them out,
0:27:19 > 0:27:21it turned out that it was pretty rotten underneath
0:27:21 > 0:27:23so the whole thing came out.
0:27:23 > 0:27:27And as a metalworker, I put in a metal staircase.
0:27:27 > 0:27:32But I've always liked the brass and stainless steel combination
0:27:32 > 0:27:34but never had a chance to do it before,
0:27:34 > 0:27:36so this was my chance!
0:27:36 > 0:27:37I think it's come out quite well.
0:27:37 > 0:27:40- And the little glass finial? - Ah, yes.
0:27:40 > 0:27:42- The truth about that?- Yeah, go on.
0:27:42 > 0:27:45It's our curtain rod from our bedroom!
0:27:45 > 0:27:47# Bring down the curtain
0:27:47 > 0:27:49# We'll be moving on... #
0:27:52 > 0:27:56It may be curtains for the symmetry of their curtain rod at home
0:27:56 > 0:28:00but the glass finial certainly finishes of the stair beautifully.
0:28:00 > 0:28:02And there's been a certain amount of curtain twitching
0:28:02 > 0:28:03in the neighbourhood
0:28:03 > 0:28:05while the work's been going on.
0:28:05 > 0:28:09The locals have been very interested in what's happening.
0:28:09 > 0:28:11All the time, every day when we're in here and the lights are on,
0:28:11 > 0:28:13they come over and people come in.
0:28:13 > 0:28:15I think that they are absolutely thrilled
0:28:15 > 0:28:17and they can't wait for us to open.
0:28:17 > 0:28:19So lots of interest, lots of support locally.
0:28:19 > 0:28:21And I think there's a feeling
0:28:21 > 0:28:23that it will make a difference to the street,
0:28:23 > 0:28:26to have one more shop actually open and selling things
0:28:26 > 0:28:29as opposed to being converted into a flat or empty,
0:28:29 > 0:28:31which some of them are.
0:28:34 > 0:28:36As for what the shop will actually sell,
0:28:36 > 0:28:38it'll be a mixture of Louis's metal furniture
0:28:38 > 0:28:41and other handmade craft pieces
0:28:41 > 0:28:45made by contacts Louis and Maggie have met at trade fairs.
0:28:45 > 0:28:47Then of course, James will be on hand with the jewellery,
0:28:47 > 0:28:49which he hopes will be a big hit.
0:28:51 > 0:28:53I'm feeling very excited. A bit nervous.
0:28:53 > 0:28:55Confident as well, though.
0:28:55 > 0:28:56You know, I think we can do it
0:28:56 > 0:29:00if we put the same enthusiasm that we've done so far.
0:29:00 > 0:29:02So, yeah, anxious to start, which is a very, you know,
0:29:02 > 0:29:04very good sign I think.
0:29:06 > 0:29:07James will manage the shop
0:29:07 > 0:29:10but there will be help close by if he needs it.
0:29:11 > 0:29:14We're going to have me and my brother.
0:29:14 > 0:29:15We're going to do separate days
0:29:15 > 0:29:19but it's going to alternate as a rota for, you know, each week.
0:29:19 > 0:29:22My mum and dad are going to be there initially helping out, you know.
0:29:22 > 0:29:24And they're absolutely fantastic, of course.
0:29:24 > 0:29:27Daisy the jewellery designer, she's going to be there.
0:29:27 > 0:29:29She's going to be working at the previous premises as well
0:29:29 > 0:29:31so it's all going to be a bit, you know,
0:29:31 > 0:29:33finding our stride, as it were.
0:29:33 > 0:29:35So once we get it, it'll be great.
0:29:38 > 0:29:40There's more stock to gather in before the grand opening
0:29:40 > 0:29:43but the building work itself is complete
0:29:43 > 0:29:46and they very nearly stuck to their ten week schedule.
0:29:46 > 0:29:50The good news is that the unpaid service charges Maggie was worried about
0:29:50 > 0:29:52only came to a few hundred pounds,
0:29:52 > 0:29:54rather than thousands.
0:29:54 > 0:29:58But what about their optimistic £20,000 budget?
0:29:59 > 0:30:04Budget-wise, it was always a range, with 20 being the lowest estimate.
0:30:04 > 0:30:05But actually, it's been...
0:30:05 > 0:30:08it is spot-on the top end of our estimate.
0:30:08 > 0:30:1140,000 is what the whole thing has cost.
0:30:11 > 0:30:14Which is more than we wanted to spend but, fortunately,
0:30:14 > 0:30:16- we did have that money set aside. - And that's without the staircase.
0:30:16 > 0:30:19- That's without the staircase. - So we should add another ten, really.
0:30:19 > 0:30:22- So...- Well, fortunately we don't have to.- Yeah.- So...!
0:30:22 > 0:30:25If we did take the stair out of the equation for now,
0:30:25 > 0:30:27a renovation cost of 40,000
0:30:27 > 0:30:32on top of their purchase price of 256,000
0:30:32 > 0:30:36brings their total outlay here to £296,000.
0:30:36 > 0:30:40We asked two local property experts to give us their take
0:30:40 > 0:30:42on the refurbished property.
0:30:42 > 0:30:46First up, the estate agent who saw the shop before work began.
0:30:46 > 0:30:48I think the changes are amazing.
0:30:48 > 0:30:50I mean, a property that was quite rundown
0:30:50 > 0:30:52and you really didn't know what you would do with it
0:30:52 > 0:30:54has now been turned into a very, very nice shop.
0:30:54 > 0:30:56The finish is fantastic.
0:30:56 > 0:30:58The finish is very, very good.
0:30:58 > 0:31:00Someone could in theory move in tomorrow
0:31:00 > 0:31:01and not have to do anything at all.
0:31:01 > 0:31:03The basement is very, very usable
0:31:03 > 0:31:05and I think it's done to a very high standard.
0:31:05 > 0:31:09Clearly Louis, Maggie and James have a plan for the shop
0:31:09 > 0:31:11but if they did want to let the premises,
0:31:11 > 0:31:13what kind of rent could they achieve?
0:31:15 > 0:31:17Rental wise, it would achieve
0:31:17 > 0:31:20between £20,000 and £25,000 per annum.
0:31:20 > 0:31:22I think the value of this property would be
0:31:22 > 0:31:24close to £20,000 a year.
0:31:24 > 0:31:26Given the local area and comparable evidence
0:31:26 > 0:31:28that we've actually been looking at recently,
0:31:28 > 0:31:32£20,000 a year does seem like a good rate you could achieve here.
0:31:32 > 0:31:36Those rental figures would give a yield of around 7 or 8%,
0:31:36 > 0:31:37which is pretty healthy.
0:31:37 > 0:31:41But what if they decided to put the shop back on the resale market?
0:31:42 > 0:31:44I think the current market value for this,
0:31:44 > 0:31:47if this was to come to the market on a for sale basis,
0:31:47 > 0:31:50would be £175,000.
0:31:50 > 0:31:51Ouch!
0:31:51 > 0:31:54That valuation could see Louis and Maggie
0:31:54 > 0:31:56making a substantial loss on the property.
0:31:56 > 0:32:00Commercial valuations are hard to pin down
0:32:00 > 0:32:03but the estate agent was clear that the value should increase
0:32:03 > 0:32:06as and when they start trading and making profit.
0:32:06 > 0:32:09All the more reason for the whole family to pull together
0:32:09 > 0:32:12and turn this into a successful business.
0:32:12 > 0:32:14Definitely.
0:32:14 > 0:32:16Definitely.
0:32:16 > 0:32:17- Good.- Yes.
0:32:22 > 0:32:26It was on a grey autumn day back in 2007
0:32:26 > 0:32:29when I first travelled to Mid Glamorgan
0:32:29 > 0:32:31to see a rather intriguing auction lot.
0:32:33 > 0:32:37Property investment opportunities come in all shapes and sizes.
0:32:37 > 0:32:39You could buy a two-up, two-down terrace
0:32:39 > 0:32:41and do it up and then sell it on.
0:32:41 > 0:32:44You could buy a commercial property, do it up and then rent it out.
0:32:44 > 0:32:45Or, how do you like the idea
0:32:45 > 0:32:49of buying a ramshackle old building, knocking it down
0:32:49 > 0:32:51and then building a block of flats on it?
0:32:51 > 0:32:55Well, that is one option in the place where I am now,
0:32:55 > 0:32:58Treorchy in the Rhondda Valley in South Wales.
0:33:04 > 0:33:08It is the former Treorchy Workingmens Club.
0:33:08 > 0:33:11Looks like it's now a car park.
0:33:11 > 0:33:13But you can tell straightaway
0:33:13 > 0:33:15this is a knock-down and rebuild job.
0:33:15 > 0:33:17Guide price 110 grand?
0:33:17 > 0:33:19Sounds like it could be a goer.
0:33:19 > 0:33:23- CAR HORN TOOTS - Oh, now there is one slight problem,
0:33:23 > 0:33:25you can't actually get into the building
0:33:25 > 0:33:26because it's pretty derelict.
0:33:26 > 0:33:30So I'm going to have to make do with walking round the outside.
0:33:30 > 0:33:32With the decline of the coal mines in this area
0:33:32 > 0:33:34came the loss of the miner's lifestyle.
0:33:34 > 0:33:39And this former social club is now sadly looking pretty anti-social.
0:33:40 > 0:33:43However, with 1,500 square metres to offer,
0:33:43 > 0:33:46this plot could get a whole new lease of life.
0:33:48 > 0:33:51Now, first impressions aren't always right but in this case,
0:33:51 > 0:33:54I'm pretty sure that they are.
0:33:54 > 0:33:56What we've got here is a huge plot of land,
0:33:56 > 0:33:59you know, pretty much in the centre of the town.
0:33:59 > 0:34:03Obviously, we've got a hodgepodge of buildings going on.
0:34:03 > 0:34:04The facade at the front, well,
0:34:04 > 0:34:07bits of that you could probably think about keeping.
0:34:07 > 0:34:10But what we do like about this is the size of the land.
0:34:10 > 0:34:13It's huge and it goes right back over there.
0:34:13 > 0:34:15Thing to consider though, it's only 110,000 quid
0:34:15 > 0:34:18and that's because it hasn't got planning permission.
0:34:18 > 0:34:20So you can have all the wild ideas in the world
0:34:20 > 0:34:22about what you might do with this place
0:34:22 > 0:34:23but until you get planning permission,
0:34:23 > 0:34:24it ain't worth diddly squat.
0:34:24 > 0:34:29It's a very interesting opportunity in PRINCIPLE, therefore.
0:34:29 > 0:34:32Whoever buys this is taking a punt with the planners.
0:34:32 > 0:34:35The only certainty is that nothing can be built
0:34:35 > 0:34:38until they make their decision.
0:34:38 > 0:34:39In the meantime,
0:34:39 > 0:34:43this imposing property is a reminder of the past.
0:34:43 > 0:34:45Well, I always like to try and find out a bit
0:34:45 > 0:34:47about the history of the properties that I look at for the show.
0:34:47 > 0:34:52This particular place was once owned by a local doctor, apparently.
0:34:52 > 0:34:56But the thing which people most remember about it nowadays
0:34:56 > 0:34:58is the fact that it is so yellow.
0:35:00 > 0:35:02I don't think it'll be yellow for much longer!
0:35:02 > 0:35:06# Oh, you had better go now
0:35:07 > 0:35:10# Go now, go now
0:35:10 > 0:35:11# Go now... #
0:35:13 > 0:35:15I'm pretty certain this building's a goner
0:35:15 > 0:35:19but what to build in its place?
0:35:19 > 0:35:21Well, its prominent position in the town
0:35:21 > 0:35:25means any planning application needs to be sympathetic to the area.
0:35:25 > 0:35:28I think maybe flats or a small housing development
0:35:28 > 0:35:31might be looked on pretty favourably by planners.
0:35:31 > 0:35:34But I'd want to do some research to make sure.
0:35:34 > 0:35:36So there you have it, it's a big plot,
0:35:36 > 0:35:39it's got a fairly low guide price of 110 grand.
0:35:39 > 0:35:42However, it doesn't have planning permission
0:35:42 > 0:35:44and it is going to be one shed-load of work
0:35:44 > 0:35:45for whoever takes it on.
0:35:45 > 0:35:48It's not a project for the first-time developer.
0:35:48 > 0:35:51Let's find out who did buy it when it went to auction.
0:35:52 > 0:35:55I go on now to a very interesting lot.
0:35:55 > 0:36:00Potential development site, now. Who's got 150,000?
0:36:00 > 0:36:02Or 120, if you like?
0:36:02 > 0:36:04100? 90? 90, I'm bid, sir.
0:36:04 > 0:36:08Thank you, I should think so. At 90,000. And 5 bid, thank you.
0:36:08 > 0:36:10There was a lot of interest in this lot.
0:36:10 > 0:36:16So we rejoin the auction when the bidding reached £150,000.
0:36:16 > 0:36:22At 150, I'm selling it, 150. And 5 more, can I? 5. 155.
0:36:22 > 0:36:24Make it 160, it's still very cheap.
0:36:24 > 0:36:28At 150... 160, standing in the back.
0:36:28 > 0:36:32At 160. Give him a nudge, madam. Five. 165.
0:36:32 > 0:36:35165. You're out, sir, and behind. 170.
0:36:35 > 0:36:38At 170. And 5 more, if you like?
0:36:38 > 0:36:42At 170,000, standing in the back, yes or no? 5.
0:36:42 > 0:36:48175. 180, please, sir? Quick, if you want it, the hammer's up, then.
0:36:48 > 0:36:52At... 80. 180. I'll take them two-by-two, if it helps you, sir.
0:36:52 > 0:36:56At 180. "No," he says. The bid's in the back at 180.
0:36:56 > 0:37:00Anybody else coming in at £180,000?
0:37:00 > 0:37:03Standing in the back. Hammer's up. Done. It's against you, sir.
0:37:03 > 0:37:08At £180,000, it's yours in the back, sir.
0:37:08 > 0:37:10That successful bid of 180,000
0:37:10 > 0:37:13was made by Vaughan and his business partner Julian.
0:37:14 > 0:37:18Julian's brother Alex is also a part of the Treorchy trio,
0:37:18 > 0:37:21and he's come along to tell me more.
0:37:21 > 0:37:22- Lovely to meet you.- And you.
0:37:22 > 0:37:24Thank you for joining me on this rainy day.
0:37:24 > 0:37:27- MARTIN LAUGHS Welcome to Wales!- Thank you.
0:37:27 > 0:37:30I don't recognise you from the auction.
0:37:30 > 0:37:34No, my brother was there. And the other business partner, Vaughan.
0:37:34 > 0:37:36I was unfortunately tied up.
0:37:36 > 0:37:39So, it's a business? Tell me more.
0:37:39 > 0:37:42Myself and my brother started the groundworks building business
0:37:42 > 0:37:46a number of years ago, when he first left school.
0:37:46 > 0:37:50So, we kind of got into that, got stuck into it, kept us quite busy.
0:37:50 > 0:37:54We decided to take it a step further and start to develop a little bit.
0:37:54 > 0:37:57- Is this the first big development project you've taken on?- It is.
0:37:57 > 0:38:00This size, anyway.
0:38:00 > 0:38:05We've done single properties before. But not multiple units.
0:38:05 > 0:38:06What's the plan?
0:38:06 > 0:38:10- Demolish.- I kind of knew that. - It's got to go, unfortunately.
0:38:10 > 0:38:13It is not the most appealing building at the moment,
0:38:13 > 0:38:16the state it's in. So, that's got to go.
0:38:16 > 0:38:22- And, possibly, put 10, maybe 12 apartments.- Oh, flats.- Yeah, yeah.
0:38:22 > 0:38:24- There's no planning permission at the moment.- No.
0:38:24 > 0:38:27How hopeful are you of getting that?
0:38:27 > 0:38:30I don't think there'll be that much of a problem,
0:38:30 > 0:38:34simply because the site is developed anyway. It's got a property on it.
0:38:34 > 0:38:38It's not greenfield, so we're not starting totally from scratch.
0:38:38 > 0:38:40Do you have any design ideas at this point?
0:38:40 > 0:38:42Nothing at all.
0:38:42 > 0:38:46Once it's demolished, it'll be a nice, blank canvas to start with.
0:38:46 > 0:38:48So, the decision to demolish is unanimous.
0:38:48 > 0:38:54It seems a shame not to keep a small memento from the building.
0:38:54 > 0:38:57What about saving any bits of it? Like, the facade at the front?
0:38:57 > 0:39:01- The stone on there, it's yellow, but it's nice stone.- It is.
0:39:01 > 0:39:02The dressed stone is hard to come by.
0:39:02 > 0:39:06But, then, you've got to take into account the time and the cost,
0:39:06 > 0:39:08labour-wise, to get it cleaned up.
0:39:08 > 0:39:10And there's not a massive amount there.
0:39:10 > 0:39:13If the property was dressed stone complete,
0:39:13 > 0:39:15then it's definitely worth doing.
0:39:15 > 0:39:18So, what's the timescales for the whole thing?
0:39:18 > 0:39:20We've given ourselves a year from when planning's gone in
0:39:20 > 0:39:24and we've kicked off. So, I would say,
0:39:24 > 0:39:28possibly, 18 months from now.
0:39:28 > 0:39:33And the biggest challenges you face, you think?
0:39:33 > 0:39:35- Money, normally!- As usual. - MARTIN LAUGHS
0:39:35 > 0:39:38Starting off and ending up with some.
0:39:41 > 0:39:44No, I don't think there is any. It seems reasonably straightforward.
0:39:44 > 0:39:46Planning is the main issue.
0:39:46 > 0:39:49Obviously, the locals are going to want their input,
0:39:49 > 0:39:53they're not going to want a power station here or something stupid.
0:39:53 > 0:39:56They're going to want something that will brighten up the area
0:39:56 > 0:39:58and something that's needed for the area.
0:39:58 > 0:40:02They estimate each flat will cost £40,000 to build,
0:40:02 > 0:40:05and hope to sell them at £80,000.
0:40:05 > 0:40:06That sounds very promising
0:40:06 > 0:40:09but, of course, there are plenty of potential pitfalls.
0:40:09 > 0:40:13Something this lot in the building trade are well aware of.
0:40:13 > 0:40:17Bound to have little hiccups on the way. Nothing runs smooth.
0:40:17 > 0:40:20- MARTIN LAUGHS - It makes the day more entertaining.
0:40:20 > 0:40:24- The weather provides that. - Yeah, lovely(!)
0:40:24 > 0:40:28Yeah, I think it could be a good, little project to kick off with.
0:40:28 > 0:40:32And, obviously, profit-wise, we'll just push it into the next project,
0:40:32 > 0:40:37and hopefully go up the scale, and do more and more.
0:40:37 > 0:40:40Thank you so much for standing in the pouring rain
0:40:40 > 0:40:42in the Welsh Valleys with me.
0:40:42 > 0:40:46- I hope the project goes well.- Yeah. And, good luck with it all.
0:40:46 > 0:40:47- Thank you very much. - Nice to meet you.
0:40:47 > 0:40:49Thank you. MARTIN LAUGHS
0:40:51 > 0:40:54Well, that was back in 2007.
0:40:54 > 0:40:58When we first returned just under one year later, well,
0:40:58 > 0:41:00it hadn't moved on much.
0:41:00 > 0:41:04But workers were on site, painstakingly picking apart
0:41:04 > 0:41:08the buildings before the big machinery could move in.
0:41:08 > 0:41:10The biggest challenge at the moment is
0:41:10 > 0:41:13just getting the building down and getting it safe.
0:41:13 > 0:41:16And then, the site is clean and secure then.
0:41:16 > 0:41:19The boys had submitted plans to the council,
0:41:19 > 0:41:23and they were hoping to raise the number of flats to 14.
0:41:25 > 0:41:31Main road coming down. A complete row of two-bed flats.
0:41:31 > 0:41:35An underpass coming through, with parking,
0:41:35 > 0:41:38and garden areas out the back.
0:41:38 > 0:41:41Which would enable us to get 14 flats in there.
0:41:43 > 0:41:47Clearly, there was plenty to do to get to that stage.
0:41:47 > 0:41:49We can see how it went from destruction
0:41:49 > 0:41:54to a very impressive construction later in the programme.
0:42:00 > 0:42:04Doing up property can be a very time-consuming undertaking.
0:42:04 > 0:42:07Especially if things don't go according to plan.
0:42:07 > 0:42:09So, did our buyers get things moving,
0:42:09 > 0:42:12or actually get stuck on first base? Let's find out.
0:42:15 > 0:42:20It was in the County Durham town of Stanley that we first saw
0:42:20 > 0:42:23this three-bed end-of-terrace house which, quite frankly,
0:42:23 > 0:42:25just needed to be finished.
0:42:28 > 0:42:30Yes, the bathroom needed some work.
0:42:30 > 0:42:32Yes, there were some snagging issues.
0:42:32 > 0:42:34Start prodding around a bit,
0:42:34 > 0:42:38and things like the laminate flooring coming up.
0:42:38 > 0:42:41- A bit of an alternative... Hello! - HE COUGHS
0:42:41 > 0:42:44And, yes, there were some areas where the general finish
0:42:44 > 0:42:46needed to be improved.
0:42:46 > 0:42:49But, otherwise, this place was fairly tickety-boo.
0:42:50 > 0:42:54It was bought for £36,000 at auction by Les and Jackie.
0:42:56 > 0:42:59Is this something you've done a lot of before?
0:42:59 > 0:43:01- Yes, I'm a builder by trade.- Oh, OK.
0:43:01 > 0:43:03Mostly, other people's stuff.
0:43:03 > 0:43:06That's where my living is.
0:43:06 > 0:43:09But I've done quite a few projects myself.
0:43:09 > 0:43:13So, making good this house was going to be as easy as pie
0:43:13 > 0:43:15for as experienced a builder as Les.
0:43:15 > 0:43:20# Easy as pie There is nothing to it, baby... #
0:43:22 > 0:43:26With Jackie's help, a £4,000 to £5,000 budget,
0:43:26 > 0:43:27and four to five week timescale,
0:43:27 > 0:43:30they hoped they could do the relatively minor work
0:43:30 > 0:43:32and prepare it for the rental market.
0:43:32 > 0:43:35# ..As easy as pie! #
0:43:40 > 0:43:42Now, eight weeks later,
0:43:42 > 0:43:45we're back to see if it's completely ready to go.
0:43:47 > 0:43:52# I'm ready for you I hope you're ready for me. #
0:43:54 > 0:43:57The most notable change is the flooring in the front reception.
0:43:57 > 0:44:02While the rear reception room has acquired a wood-burning stove.
0:44:02 > 0:44:04And the kitchen?
0:44:04 > 0:44:09With the kitchen, we decided that we were going to put a range in.
0:44:09 > 0:44:13What we've done was we've brought our range from home
0:44:13 > 0:44:16and installed that here, and we got a new one.
0:44:16 > 0:44:18So that was rather nice!
0:44:18 > 0:44:20So, a definite upgrade in the kitchen,
0:44:20 > 0:44:23whilst retaining most of the original kitchen units.
0:44:23 > 0:44:27What about that rather sad-looking bathroom?
0:44:27 > 0:44:31We took all the old bathroom equipment out, and the flooring up.
0:44:31 > 0:44:34We put underfloor heating in.
0:44:34 > 0:44:36New tiles right through.
0:44:36 > 0:44:39New shower-bath. I was going to put a separate shower in,
0:44:39 > 0:44:41but it was a little bit of a squeeze
0:44:41 > 0:44:43so everything was in the same place but new stuff.
0:44:43 > 0:44:47Yes, that really is so much better.
0:44:47 > 0:44:49And upstairs?
0:44:49 > 0:44:52Well, the three bedrooms have just had a tidy-up
0:44:52 > 0:44:55but, then, that's all they really needed.
0:44:57 > 0:45:00They've put some fencing at the back of the house,
0:45:00 > 0:45:04and the pointing issue on the roof has been sorted.
0:45:04 > 0:45:06So it does seem this place is now good to go.
0:45:12 > 0:45:15But, was it as straightforward as it appears?
0:45:15 > 0:45:17The biggest challenge was the floor.
0:45:17 > 0:45:20We took the laminate up,
0:45:20 > 0:45:24which was new laminate which had been covered over.
0:45:24 > 0:45:29And there was quite significant fungus right across the floor.
0:45:30 > 0:45:33So, we had to lift the floors up as well.
0:45:33 > 0:45:35The air bricks had been covered over.
0:45:35 > 0:45:38So we had to clean them out, and we put new air bricks in as well.
0:45:38 > 0:45:41We treated the floors, put a membrane down,
0:45:41 > 0:45:45and then put the new engineered oak flooring down.
0:45:46 > 0:45:49The issues with the flooring, and a two-week trip to Bulgaria
0:45:49 > 0:45:53to see the two properties they'd bought at an online auction
0:45:53 > 0:45:56delayed the renovation by a few weeks.
0:45:57 > 0:45:59But how was it working together?
0:45:59 > 0:46:02Do they get on like a house on fire?
0:46:02 > 0:46:04THEY LAUGH
0:46:04 > 0:46:06Oh, he's good.
0:46:06 > 0:46:09We get on well together, working. We get plenty done, don't we?
0:46:09 > 0:46:10- Yeah.- We get lots done.
0:46:10 > 0:46:14- I get more cups of tea than when I'm working on my own.- Yeah.
0:46:16 > 0:46:22And it seems the finished house is also someone else's cup of tea too.
0:46:22 > 0:46:25A couple of the neighbours, we had been chatting to them,
0:46:25 > 0:46:28and they told somebody very locally,
0:46:28 > 0:46:32so it's already going to be rented out very soon, within two weeks.
0:46:32 > 0:46:34And they absolutely love the flooring,
0:46:34 > 0:46:36they love the new bathroom,
0:46:36 > 0:46:42and they really love the log-burning stove, the log-burning fire.
0:46:42 > 0:46:45That will mean it was finished and rented out
0:46:45 > 0:46:48in a total of ten weeks. Not bad!
0:46:50 > 0:46:54But, did they keep to their £4,000-£5000 budget?
0:46:54 > 0:46:57It's actually, I totted it all up, it's come to £4,000
0:46:57 > 0:47:02including the labour, that's excluding two weeks of my time.
0:47:02 > 0:47:05So it's not far away from what we originally expected.
0:47:08 > 0:47:12Well, a £4,000 spend on top of that £36,000 purchase price,
0:47:12 > 0:47:17takes their total to £40,000 before tax and fees.
0:47:17 > 0:47:20So, have they done enough tweaks and upgrades
0:47:20 > 0:47:23to maximise this house's potential?
0:47:23 > 0:47:25What do two local estate agents think?
0:47:27 > 0:47:29Overall, I think the refurbishment has been done
0:47:29 > 0:47:32to a reasonable standard, although I think it's been a fairly quick job.
0:47:32 > 0:47:34Some of the highlights of the property, I think,
0:47:34 > 0:47:36maybe the wood-burning stove in the dining room,
0:47:36 > 0:47:39and the new cooker in the kitchen is quite a nice touch as well.
0:47:39 > 0:47:40I think it's very deceiving.
0:47:40 > 0:47:42When you approach it from the outside,
0:47:42 > 0:47:45it looks a very small, two-bedroomed house.
0:47:45 > 0:47:48You come inside, it's a spacious, well-proportioned house.
0:47:48 > 0:47:52They've put sensible floor coverings down, for practical purposes.
0:47:52 > 0:47:55So, yes, there's a lot of nice points about it.
0:47:56 > 0:47:58Sounds encouraging.
0:47:58 > 0:48:01Although this was always bought as a rental property.
0:48:01 > 0:48:04Have they invested their £40,000 wisely?
0:48:04 > 0:48:07On the current market, I would expect it to achieve
0:48:07 > 0:48:08somewhere in the region of £50,000.
0:48:08 > 0:48:11The property would sell for £50,000,
0:48:11 > 0:48:16but we'd suggest an asking price of offers in the region of £55,000.
0:48:16 > 0:48:20- Great.- OK. Yeah.- That's OK. - Yeah.- Yeah.
0:48:20 > 0:48:26So, a potential pre-tax profit of £10,000. Good news.
0:48:26 > 0:48:30But what about the all-important rental values?
0:48:30 > 0:48:33On the rental market, I think this property would achieve
0:48:33 > 0:48:36somewhere in the region of £400 to £425 per calendar month.
0:48:36 > 0:48:38In the region of £425 per calendar month,
0:48:38 > 0:48:41with a view to settling at £400 per calendar month.
0:48:41 > 0:48:48- I think that's right.- Uh-huh.- That's, er, pretty accurate.- Yes.- Yes.
0:48:48 > 0:48:51- Very accurate, really. - Which is great.- Yeah.
0:48:51 > 0:48:57Yes, Les and Jackie are getting that £400 per calendar month mark
0:48:57 > 0:49:00which would generate a very healthy yield of 12%.
0:49:00 > 0:49:03So, what's up next for them?
0:49:03 > 0:49:06- We looked at five properties this morning, didn't we?- We did.
0:49:06 > 0:49:10One of which seems particularly interesting.
0:49:10 > 0:49:12It was quite a large terraced house
0:49:12 > 0:49:16which we think could be converted into two one-bedroom flats.
0:49:16 > 0:49:20I'll be able to use my skills a lot more than I did here.
0:49:20 > 0:49:23A huge amount of cleaning for Jackie to do.
0:49:23 > 0:49:25SHE GIGGLES
0:49:25 > 0:49:27- And you.- Yes!
0:49:27 > 0:49:28THEY LAUGH
0:49:31 > 0:49:35It was back in 2007 when we first took a trip
0:49:35 > 0:49:40to the Rhondda Valley to see the Treorchy Workingmens Social Club.
0:49:42 > 0:49:45Derelict and neglected, unfortunately,
0:49:45 > 0:49:49there wasn't much future for the club in its current condition.
0:49:50 > 0:49:53But, as it sat on a prominent and good-sized plot,
0:49:53 > 0:49:56it had development potential written all over it.
0:50:00 > 0:50:04Despite having no planning permission for development,
0:50:04 > 0:50:07it was bought at auction for £180,000
0:50:07 > 0:50:09by property developer Vaughan,
0:50:09 > 0:50:12and brothers Julian and Alex, who are builders.
0:50:12 > 0:50:15It was left to Alex to tell me their plans.
0:50:17 > 0:50:19Do you have any design ideas at this point?
0:50:19 > 0:50:21Nothing at all.
0:50:21 > 0:50:24Once it's demolished, it'll be a nice, blank canvas to start on.
0:50:24 > 0:50:26Due to their other work commitments,
0:50:26 > 0:50:29when we first returned over a year later,
0:50:29 > 0:50:32they weren't even at the blank canvas stage.
0:50:34 > 0:50:37They had, at least, submitted plans to build 14 two-bedroomed flats.
0:50:37 > 0:50:42But this project was still very embryonic.
0:50:42 > 0:50:45The biggest challenge, at the moment, is just getting the building down
0:50:45 > 0:50:47and getting it safe.
0:50:47 > 0:50:49And then, the site is clean and secure then.
0:50:49 > 0:50:53Well, it's taken some time, and some planning
0:50:53 > 0:50:57but, nearly six years since we first saw the site, we're back.
0:50:59 > 0:51:04# I came, I saw Tore down these walls. #
0:51:05 > 0:51:08It doesn't look like 14 flats.
0:51:08 > 0:51:11What has been going on here in the intervening years?
0:51:13 > 0:51:18We've had offers put to us from housing associations
0:51:18 > 0:51:22that wanted to buy the job, or the site, as a complete package.
0:51:25 > 0:51:32Because of the needs for specific disability requirements,
0:51:32 > 0:51:36they wanted to change from flats to single properties
0:51:36 > 0:51:39with a couple of specific bungalows at the back.
0:51:39 > 0:51:43And we ended up coming out with six properties.
0:51:45 > 0:51:47Four semi-detached,
0:51:47 > 0:51:50and two detached bungalows.
0:51:55 > 0:51:58And they vary in size.
0:51:58 > 0:52:00Two of the semi-detached properties have two bedrooms,
0:52:00 > 0:52:02and the other two have four bedrooms.
0:52:04 > 0:52:08Then, there are the two bungalows, one of which has three bedrooms,
0:52:08 > 0:52:11and has been adapted for disabled use.
0:52:11 > 0:52:13The other has two bedrooms,
0:52:13 > 0:52:17and could be adapted for disabled use at a later date.
0:52:17 > 0:52:20So, what do the properties look like inside?
0:52:20 > 0:52:26This is the kitchen of the four-bed, one of the semi-detached houses.
0:52:26 > 0:52:30We're nearly there with finishing.
0:52:30 > 0:52:34Obviously, cleaning is the biggest thing to do.
0:52:34 > 0:52:39It's not a bad-sized kitchen.
0:52:39 > 0:52:41Good central heating, combi boiler.
0:52:41 > 0:52:44Pretty much the same specs throughout each property as well.
0:52:44 > 0:52:48So, both four-bedroomed semis have a decent-sized lounge,
0:52:48 > 0:52:50a wet room,
0:52:50 > 0:52:52and a downstairs bedroom.
0:52:56 > 0:53:00With three more bedrooms upstairs.
0:53:03 > 0:53:05And a family bathroom.
0:53:05 > 0:53:07What about outside?
0:53:07 > 0:53:12This is the rear garden of one of the houses.
0:53:12 > 0:53:14It's a good-sized garden.
0:53:14 > 0:53:17Patioed area.
0:53:17 > 0:53:21We're trying to re-use water from storm water coming down,
0:53:21 > 0:53:23and to collect it for watering plants and so on.
0:53:23 > 0:53:26And it's reasonably flat, which is quite rare for up the Valleys.
0:53:26 > 0:53:30The entire development has taken about a year to build,
0:53:30 > 0:53:34and was done mainly by Alex and his brother Julian
0:53:34 > 0:53:37with help from a team of subcontractors.
0:53:37 > 0:53:39There's a little snagging to sort out in the houses,
0:53:39 > 0:53:43and the driveways and parking areas need to be finished off.
0:53:43 > 0:53:46But, overall, the six properties are almost ready.
0:53:46 > 0:53:51So, have they met the brief given to them by the housing association?
0:53:51 > 0:53:54Delighted with the end product. The properties are really great.
0:53:54 > 0:53:56They'll meet the needs of
0:53:56 > 0:53:57the tenants we're putting in.
0:53:57 > 0:54:00Most of them are from very local areas
0:54:00 > 0:54:02so they're looking forward to moving in.
0:54:02 > 0:54:07And we're going to arrange a day so they can all get to know each other,
0:54:07 > 0:54:09they can move in together, we'll have a big bang approach,
0:54:09 > 0:54:13then we'll probably have some kind of celebration afterwards.
0:54:13 > 0:54:15And one of those tenants is Lindsay.
0:54:15 > 0:54:19She'll be moving in to a three-bedroomed adapted bungalow
0:54:19 > 0:54:24with her son, Kaydar, and her four-year-old daughter Kendra.
0:54:24 > 0:54:27What does she make of her new home?
0:54:27 > 0:54:3231st of July I'm moving in, and I'm ecstatic. I can't wait.
0:54:32 > 0:54:35This is going to be Kendra's room, because she'll have the hoists,
0:54:35 > 0:54:37And then I'm opposite her.
0:54:37 > 0:54:40Then, my little boy is further up.
0:54:40 > 0:54:42Then, we've got the living room,
0:54:42 > 0:54:44with hoists in there for when she gets older.
0:54:44 > 0:54:47There's patio doors in the living room,
0:54:47 > 0:54:49so it's easy access for Kendra to get out in the garden.
0:54:49 > 0:54:51That's just great.
0:54:51 > 0:54:53Although it may have taken time to get there,
0:54:53 > 0:54:58for Lindsay and Kendra, it's certainly been well worth the wait.
0:54:58 > 0:55:01But has this development been financially worthwhile,
0:55:01 > 0:55:05as they've sold the development to the housing association?
0:55:05 > 0:55:06But for how much?
0:55:06 > 0:55:10We've got a package coming off, obviously, for the complete build,
0:55:10 > 0:55:15which is coming in at 890.
0:55:15 > 0:55:19We are probably going to end up with around
0:55:19 > 0:55:2480, 85,000 profit.
0:55:25 > 0:55:29This development was originally a joint investment between Alex
0:55:29 > 0:55:32his brother Julian, and property developer Vaughan.
0:55:32 > 0:55:34However, the brothers bought Vaughan out 18 months ago,
0:55:34 > 0:55:40so that £85,000 profit needs only to be split two ways.
0:55:40 > 0:55:43But, could this site have been more rewarding for them
0:55:43 > 0:55:45if they had sold the houses separately?
0:55:45 > 0:55:49What do two local estate agents think?
0:55:49 > 0:55:52Really, really pleased. I didn't expect this.
0:55:52 > 0:55:57I think the builders here have done a really, really lovely job.
0:55:57 > 0:56:01The spec and finish is done to a very good standard. Good-sized rooms,
0:56:01 > 0:56:03well spec'd kitchens and bathrooms
0:56:03 > 0:56:04in all of the builds.
0:56:04 > 0:56:07All in all, a very good development indeed.
0:56:09 > 0:56:12So, what about an approximate market value for the properties
0:56:12 > 0:56:15that Alex and his brother Julian have built and sold
0:56:15 > 0:56:19to the housing association for a total of £890,000?
0:56:21 > 0:56:23I would say the two-bedroomed properties,
0:56:23 > 0:56:26you'd be looking round about £60,000.
0:56:26 > 0:56:31The two-bedroomed semi, £95 to £100,000.
0:56:31 > 0:56:35The four bedrooms, about £100,000.
0:56:35 > 0:56:39The four-bedroomed semis, I think, would realise
0:56:39 > 0:56:41somewhere between 140 and 150.
0:56:41 > 0:56:45The two-bed bungalow, maybe, 75, 80,000.
0:56:45 > 0:56:49And, pushed, maybe 90, 95,000 for the larger three-bedroomed bungalow.
0:56:49 > 0:56:55We would be looking at around £150,000 for this bungalow alone.
0:56:55 > 0:56:58Estate agent Maria thought the two-bedroomed bungalow
0:56:58 > 0:57:01would be worth around £120,000.
0:57:01 > 0:57:04There's a big difference between the valuations here.
0:57:04 > 0:57:07Maria valued the whole site at £770,000.
0:57:07 > 0:57:12While the other agent, Mark's valuation was only £485,000.
0:57:12 > 0:57:15It just goes to show that valuing property is not an exact science.
0:57:15 > 0:57:18But in this case it's all academic,
0:57:18 > 0:57:21as the brothers have already sold the entire development
0:57:21 > 0:57:27to a local housing association for £890,000. A fantastic result.
0:57:29 > 0:57:33It's been a win-win for both the housing association -
0:57:33 > 0:57:36so they can provide much-needed amenity dwellings -
0:57:36 > 0:57:41and for Alex and Julian, meaning the end of a six-year saga.
0:57:41 > 0:57:46I feel very proud because it's people who really need properties like this.
0:57:46 > 0:57:50So, in that sense, I'm quite pleased and proud
0:57:50 > 0:57:52that it is going out to tenants like that.
0:57:54 > 0:57:56Well, that's it for this show.
0:57:56 > 0:57:57We'll have more tales
0:57:57 > 0:58:00from the front line of property development for you next time.
0:58:00 > 0:58:03So make sure you join us for more Homes Under The Hammer.
0:58:03 > 0:58:04- Goodbye.- Goodbye.