0:00:02 > 0:00:04Hello. Now, people buy property for all sorts of different reasons.
0:00:04 > 0:00:06Sometimes it's to live in.
0:00:06 > 0:00:09Other times, it's to do up and then either let out or sell on.
0:00:09 > 0:00:13But whatever the reason, the main concern is getting value for money
0:00:13 > 0:00:15so at the end of the day you can make a profit.
0:00:15 > 0:00:17But how do you do that?
0:00:17 > 0:00:19One way could be to buy your home under the hammer.
0:00:45 > 0:00:49You have to do your homework before you buy at auction
0:00:49 > 0:00:52so that you are prepared for any potential problems.
0:00:52 > 0:00:57So if it all checks out fine, you could bag yourself a real bargain.
0:00:57 > 0:01:00Let's take a look at the money-spinners or potential money pits
0:01:00 > 0:01:03that inspired people on today's show.
0:01:05 > 0:01:08This property in Stockton-on-Tees has worked its magic on me.
0:01:08 > 0:01:13Hey, presto! Look what we've got here. Exactly that. Fantastic!
0:01:14 > 0:01:18While in Bexleyheath, Kent, it may just take three magic words
0:01:18 > 0:01:21to make potential buyers of this house disappear.
0:01:21 > 0:01:23Non-traditional construction.
0:01:24 > 0:01:26And in Dartmouth, Devon,
0:01:26 > 0:01:30this ground floor commercial unit used to be a cocktail bar.
0:01:30 > 0:01:33Will its £45,000 to £65,000 guide price appeal?
0:01:35 > 0:01:38All these properties are being sold at auction
0:01:38 > 0:01:42and we'll find out who bought them and what they paid for them when they went under the hammer.
0:01:42 > 0:01:44Sold!
0:01:52 > 0:01:55I'm in Norton on Teesside.
0:01:55 > 0:02:00It's a village that dates back to Anglo-Saxon times and it really
0:02:00 > 0:02:05is charming with a village green, a duck pond and some lovely houses.
0:02:06 > 0:02:09# We are the village green
0:02:09 > 0:02:11# Preservation Society
0:02:11 > 0:02:13# God save Donald Duck
0:02:13 > 0:02:16# Vaudeville and variety
0:02:16 > 0:02:21# God save the village green. #
0:02:21 > 0:02:25It really is a lovely place and it looks as though we're not
0:02:25 > 0:02:29the first to be indulging in a spot of refurbishment around here.
0:02:31 > 0:02:37Well, just behind the green in Norton is the property I'm here to see.
0:02:37 > 0:02:41It's this. A two-bedroom cottage.
0:02:41 > 0:02:45The guide price was £99,950,
0:02:45 > 0:02:49but on auction day it was reduced to 70,000.
0:02:50 > 0:02:53So what's it like inside? Well, through the front door.
0:02:53 > 0:02:56Stairs facing you, leading up to the bedrooms.
0:02:56 > 0:02:58A living room over that side.
0:02:58 > 0:03:03It has already got a bit of a quaint olde-worlde feel to it,
0:03:03 > 0:03:08although very high ceilings which give a nice sense of space.
0:03:08 > 0:03:13Another living area over this side. Again, a good size.
0:03:13 > 0:03:14I imagine at that point in the past,
0:03:14 > 0:03:17that's where the cottage would have finished.
0:03:17 > 0:03:21There's a little room there that at some stage possibly even contained the kitchen.
0:03:21 > 0:03:24That's all lovely. Then you come here.
0:03:24 > 0:03:29This is a kitchen that has been built into this kind of extension right at the back.
0:03:29 > 0:03:31It's got this strange sloping roof
0:03:31 > 0:03:34which is just too low at that far end there.
0:03:34 > 0:03:38And it's just totally out of character with the rest of the place.
0:03:38 > 0:03:41So you definitely need to spend some money in this bit
0:03:41 > 0:03:44but in terms of the rest, yes, I still love it.
0:03:46 > 0:03:49Upstairs, the bathroom needs something of an overhaul.
0:03:49 > 0:03:51Then there are two bedrooms.
0:03:51 > 0:03:55They are not huge but are well proportioned doubles.
0:03:55 > 0:03:58None of this detracts from my initial good feeling about this place.
0:03:59 > 0:04:03# Loving you is easy
0:04:03 > 0:04:07# Cos you're beautiful
0:04:07 > 0:04:11# Do-do-do-do
0:04:11 > 0:04:14# Ah-ah-ah. #
0:04:14 > 0:04:17At the back of the property there is this little courtyard here
0:04:17 > 0:04:22and you get to see that extension which houses the kitchen.
0:04:22 > 0:04:24Yes, it is not ideal at all.
0:04:24 > 0:04:26But to make this place perfect,
0:04:26 > 0:04:29what you would want really is a bit more garden space.
0:04:29 > 0:04:31A little bit of a cottagey garden perhaps.
0:04:31 > 0:04:33And hey presto!
0:04:33 > 0:04:37Look what we've got here. Exactly that. Fantastic!
0:04:38 > 0:04:40The garden needs a bit of a tidy up,
0:04:40 > 0:04:43but for me it's the icing on a pretty scrummy cake.
0:04:49 > 0:04:53So, it's all great and then... Whoopsie!
0:04:53 > 0:04:55A potential fly in the ointment.
0:04:55 > 0:05:00Because come out of the rear of the property out of this side gate
0:05:00 > 0:05:04and you have the access, or the rear access, to the house.
0:05:04 > 0:05:07It's through this garage door here
0:05:07 > 0:05:12and I believe you've got shared access of this bit of driveway.
0:05:12 > 0:05:16You've also got that garage which is attached to that garage.
0:05:18 > 0:05:21This is the kind of thing that on the face of it is OK
0:05:21 > 0:05:25but when it comes to rights of access, it is potentially
0:05:25 > 0:05:28a legal nightmare and your solicitor needs to check exactly what
0:05:28 > 0:05:32rights you have to drive your car to get access to your garage
0:05:32 > 0:05:35and also to get access via foot to the side of your house.
0:05:35 > 0:05:38It's just one of those messy complicated things that nobody
0:05:38 > 0:05:42really likes and it will definitely affect the value of this place.
0:05:42 > 0:05:47# Tell me why do you have to go and make things so complicated
0:05:47 > 0:05:50# No, no, no. #
0:05:50 > 0:05:53Shared access may not be ideal but as long as you get
0:05:53 > 0:05:56a solicitor to check it out, it needn't be a deal-breaker.
0:05:57 > 0:06:02We asked a local estate agent for his thoughts on this place.
0:06:02 > 0:06:06First impressions are, it's a decent size for two bedrooms
0:06:06 > 0:06:09but it does need a bit of modernisation.
0:06:12 > 0:06:16Fair enough, but bearing in mind the auction guide price of 70,000,
0:06:16 > 0:06:18what might it sell on for once done up?
0:06:20 > 0:06:25I would think it would achieve £110,000 to £115,000.
0:06:26 > 0:06:28And on the rental market?
0:06:28 > 0:06:32I would expect to achieve a rent of £550 per calendar month.
0:06:34 > 0:06:37Well, apart from the possible issues with the shared access here,
0:06:37 > 0:06:42I think this is a really good property to go for.
0:06:42 > 0:06:44Lovely location, charming little house.
0:06:44 > 0:06:46Let's see who agreed when it went under the hammer.
0:06:48 > 0:06:51We are going to move now to lot number 36.
0:06:51 > 0:06:55It is a charming two bed property. Do I dare ask for 75,000 anywhere?
0:06:56 > 0:06:59We will take 70 if it helps to start. I need 70,000.
0:06:59 > 0:07:05Front row at £70,000. Do I have 71 anywhere else? 71, I can see.
0:07:05 > 0:07:1071,000. 72. 73. 74. 75.
0:07:11 > 0:07:1674,000 in the front row. I want to sell. I'll take 500.
0:07:16 > 0:07:23500 bid. 74 and a half. 75. 75 and a half? 76. 76 and a half?
0:07:23 > 0:07:2776 and a half bid. 77. 77 and a half? No.
0:07:27 > 0:07:32I'm at 77,000 in the front row. Do I have five anywhere else?
0:07:32 > 0:07:34This is your last chance. Going once at 77.
0:07:34 > 0:07:38I'm going for the second time. That's £77,000.
0:07:38 > 0:07:43Sold to the gentleman in the front row at £77,000.
0:07:43 > 0:07:48That successful bid of £77,000 was made by Ken who attended
0:07:48 > 0:07:50the auction with his wife, Kath.
0:07:50 > 0:07:53The couple both work for the family haulage business.
0:07:55 > 0:07:57# Away, haul away
0:07:57 > 0:07:59# We'll haul away together
0:07:59 > 0:08:01# Away, haul away
0:08:01 > 0:08:03# We'll haul away. #
0:08:03 > 0:08:06And they live locally. Very locally.
0:08:07 > 0:08:12Kath, Ken, great to meet you both. Congratulations.
0:08:12 > 0:08:16- Tell me why you wanted to buy the place.- Go on, Kath.
0:08:16 > 0:08:20- It backs on to the property we've just bought out there.- Right.
0:08:20 > 0:08:23- So your house is on the other side of the garden?- That's right.
0:08:23 > 0:08:24What about the garages?
0:08:24 > 0:08:27The single garage belongs to this property
0:08:27 > 0:08:30which is another reason why we bought it, so we can take that back.
0:08:30 > 0:08:33It was all a bit of a shared access, which we wanted to get rid of.
0:08:33 > 0:08:35- But the other part of that garage building is yours.- Yes.
0:08:35 > 0:08:40The shared access issue, which I thought could have been a potential problem.
0:08:40 > 0:08:43That was the main reason we bought the house, really,
0:08:43 > 0:08:46because if anybody moved in or if somebody bought it
0:08:46 > 0:08:49and rented it, it could have been an issue with other people.
0:08:49 > 0:08:52So we thought we'd have a go at it and we went to the auction
0:08:52 > 0:08:55and stuck our hands up and were successful.
0:08:55 > 0:08:59- You must have been really keen to get it.- Yes.
0:08:59 > 0:09:05I mean, almost, not at any price, but what would you have gone to?
0:09:05 > 0:09:08- We would have gone a bit more than what we paid, I think.- How much?
0:09:08 > 0:09:12- We decided that we would go to 110,000.- He's being very coy!
0:09:12 > 0:09:15We got our surveyor to come and see it before we went to the auction.
0:09:15 > 0:09:17Good. What did he point out?
0:09:17 > 0:09:21He did say that because of where it was in relation to our own property,
0:09:21 > 0:09:26there was a 10% or 20% value for that for us
0:09:26 > 0:09:30- that obviously other people wouldn't have.- OK.
0:09:30 > 0:09:33So it was worth more to us than it would be to any other
0:09:33 > 0:09:35- prospective buyer because of its position.- Right.
0:09:35 > 0:09:38That's an interesting way of looking at it.
0:09:38 > 0:09:41You have the property as well and we're going to rent it out
0:09:41 > 0:09:44and it's an investment for us as well at the same time.
0:09:44 > 0:09:46Wow. Gosh, you must be absolutely delighted.
0:09:46 > 0:09:49We were on the night, yes.
0:09:49 > 0:09:52# We're going to have a good time tonight
0:09:52 > 0:09:54# Let's celebrate
0:09:54 > 0:09:56# It's all right. #
0:09:56 > 0:10:01Prior to the auction, the cottage was on the market for £140,000,
0:10:01 > 0:10:03double the adjusted guide price.
0:10:03 > 0:10:06So they've done very well indeed.
0:10:06 > 0:10:09They want to raise the roof of the existing kitchen extension
0:10:09 > 0:10:11and that's not all they want to do here.
0:10:11 > 0:10:14What exactly are we going to do? We're not 100% sure at the moment.
0:10:14 > 0:10:16It depends what the architect comes back with.
0:10:16 > 0:10:19He's talking to the council currently.
0:10:19 > 0:10:21It's not listed but it's in a conservation area
0:10:21 > 0:10:25so it's a question of what we need to do to get planning permission
0:10:25 > 0:10:27for the kitchen bit at the back.
0:10:27 > 0:10:31We probably want to replace the windows at the front. We haven't quite decided yet.
0:10:31 > 0:10:34We're going to replace the bathroom and kitchen,
0:10:34 > 0:10:37replace the heating and decoration, really. That's about it.
0:10:37 > 0:10:41What do you know about the history of the house in terms of your relationship with it?
0:10:41 > 0:10:46We know that about 20-odd years ago there was a deal done with
0:10:46 > 0:10:48the people that owned our house
0:10:48 > 0:10:52and they gave this house a little bit of garden in exchange
0:10:52 > 0:10:55for a bit of land so they could get vehicle access on to their site.
0:10:55 > 0:10:58- That explains... - The garages, yes.- Right.
0:10:58 > 0:11:02We are going to take the garden back for the other property
0:11:02 > 0:11:05and I'm going to make that into a vegetable plot.
0:11:05 > 0:11:10We are also going to take the garage and move the gate a bit
0:11:10 > 0:11:14further forward so this will just have a lovely yard to it.
0:11:14 > 0:11:16Then, like Ken says, do the kitchen up, do the bathroom up,
0:11:16 > 0:11:22decorate it, give it a good spruce up and then rent it out.
0:11:22 > 0:11:24So what is the budget for the work?
0:11:24 > 0:11:28We have not really thought about budget, have we? I don't know.
0:11:28 > 0:11:32- I have.- Kath has. Dear me, I hadn't thought about budget but Kath has. Go on, then, Kath.
0:11:32 > 0:11:36- I would say, hopefully, no more than about £5,000.- Right.
0:11:36 > 0:11:40- For the kitchen and bathroom? - I think she's a bit, you know...
0:11:40 > 0:11:43- Ambitious?- Yes. A bit. - All right, 10.
0:11:43 > 0:11:49- I've told you that.- Right. Did you? Sorry. It depends what we've got to do with the kitchen.
0:11:49 > 0:11:51No, you have your squabbles. That's fine. Nobody's looking!
0:11:51 > 0:11:55- It depends what we've got to do with the kitchen, really.- Right.
0:11:56 > 0:11:59Kath and Ken are currently having their own house done up
0:11:59 > 0:12:02and will be using the same builders to renovate this place.
0:12:02 > 0:12:05They may chip in on the decorating inside themselves
0:12:05 > 0:12:08and hope to have it ready in six months.
0:12:08 > 0:12:11What's next on the horizon for you two after you've done this?
0:12:11 > 0:12:13- After we've done this? - We'll have a rest after this.
0:12:13 > 0:12:15Yes. I think we'll put our feet up.
0:12:15 > 0:12:18We'll be sick of the sight of builders and picking paint
0:12:18 > 0:12:21- and things like that. - Definitely a feet up job.
0:12:21 > 0:12:25We'll make the most of what we've done and enjoy what we've done.
0:12:25 > 0:12:29- Listen, congratulations.- Thanks very much.- Good luck with it.- Thank you.
0:12:29 > 0:12:32- We'll look forward to seeing how you get on.- Cheers. Thank you.
0:12:34 > 0:12:39Well, Kath and Ken were the obvious people to buy this place and as
0:12:39 > 0:12:43they say, it's worth a lot more to them than any other potential buyer.
0:12:43 > 0:12:45In terms of their plans for it,
0:12:45 > 0:12:48I think it's possibly a shame they are losing some of the garden
0:12:48 > 0:12:53but the rest of it, yes, it makes perfect sense on so many levels.
0:12:53 > 0:12:56You can see how they get on sorting it out later in the show.
0:13:02 > 0:13:04This is Bexleyheath in Kent.
0:13:06 > 0:13:09In its time, this town on the outskirts of London has been
0:13:09 > 0:13:11home to former James Bond, Roger Moore.
0:13:13 > 0:13:17So will I be shaken or stirred by the property I am about to see?
0:13:19 > 0:13:21The train station is over a mile away.
0:13:21 > 0:13:26Once you've actually made your way there, you can be in central London in around 40 minutes.
0:13:26 > 0:13:29So that is a selling point for today's auction property.
0:13:29 > 0:13:32I thought it was best for me to start with a positive
0:13:32 > 0:13:36because...it is not great, is it?
0:13:36 > 0:13:38But then, look at that.
0:13:38 > 0:13:41Fantastic open parkland to the side.
0:13:41 > 0:13:44That really does put a smile on my face.
0:13:44 > 0:13:47The guide price was set at just £85,000
0:13:47 > 0:13:51and for this area, that represents really good value.
0:13:55 > 0:13:59Right. Do not be put off by the decor in this property.
0:13:59 > 0:14:01Polystyrene tiles everywhere.
0:14:01 > 0:14:04You've even got ceiling rows made out of the stuff up there.
0:14:04 > 0:14:06But a great space.
0:14:06 > 0:14:09Very dated indeed but there is so much you can do about that.
0:14:09 > 0:14:12What I love is this wonderful flow.
0:14:12 > 0:14:14You've got a nice sitting room, a lovely dining space,
0:14:14 > 0:14:17you walk straight into the kitchen.
0:14:17 > 0:14:20A good size as well. Obviously, all the units need updating
0:14:20 > 0:14:26but what I would like to see would be a nice big picture window there to take in the most of those views.
0:14:26 > 0:14:29Of course, you would have to apply for planning permission.
0:14:29 > 0:14:32Failing that, you could think about putting on a little
0:14:32 > 0:14:35conservatory because to look out there at that lovely big,
0:14:35 > 0:14:40green, wide open parkland is what this property needs.
0:14:41 > 0:14:45# I'm in a wide open space
0:14:45 > 0:14:47# It's freezing
0:14:47 > 0:14:50# You'll never get to heaven
0:14:50 > 0:14:54# With a smile on your face from me. #
0:14:54 > 0:14:57Or you could even do both.
0:14:57 > 0:15:00There is plenty of space at the back here to accommodate
0:15:00 > 0:15:03a conservatory and have a lovely garden once you've got
0:15:03 > 0:15:06rid of the concrete slabs and weeds.
0:15:07 > 0:15:11Also in need of some serious TLC is the upstairs.
0:15:11 > 0:15:15Each of the three bedrooms is slumbering in decades-old decor.
0:15:16 > 0:15:20A '70s avocado bathroom suite is likely to be a shade too
0:15:20 > 0:15:24dated for even the keenest retro aficionado.
0:15:24 > 0:15:26All of this is cosmetic, however,
0:15:26 > 0:15:29and could be really good fun to change, especially when compared
0:15:29 > 0:15:32to some of the more troublesome tasks you need to tackle here.
0:15:34 > 0:15:39Unfortunately, this house is hiding a murky secret.
0:15:39 > 0:15:43It was built in the 1960s and it was made out of concrete.
0:15:43 > 0:15:47Now, it's not the concrete that causes the real issues.
0:15:47 > 0:15:52It's the metal rods that are inside the concrete holding the structure together.
0:15:52 > 0:15:53Over time they can rust,
0:15:53 > 0:15:56they can break down and the concrete can start to crack.
0:15:56 > 0:15:59That is when the real issues start.
0:15:59 > 0:16:02It's known as non-traditional construction
0:16:02 > 0:16:05and that label can put off some lenders.
0:16:05 > 0:16:08Luckily, there is something you can do to rectify the problem.
0:16:08 > 0:16:12One way of treating houses of non-traditional construction
0:16:12 > 0:16:17would be to remove or treat the offending concrete and put a brick skin on.
0:16:17 > 0:16:20In some instances, the entire concrete structure might have
0:16:20 > 0:16:24to be removed and replaced with traditional brick and block.
0:16:24 > 0:16:29Now, the outcome is a repaired mortgageable property of traditional construction.
0:16:29 > 0:16:32However, this isn't a cheap exercise
0:16:32 > 0:16:35and could easily end up costing £30,000 to £40,000.
0:16:35 > 0:16:38So be warned.
0:16:40 > 0:16:43Doing the work to make it a traditional construction
0:16:43 > 0:16:47could add around 50 grand to the end value but the mortgage itself,
0:16:47 > 0:16:51if you can secure one, legal fees and the all-important
0:16:51 > 0:16:55surveyor's fees, will most likely cost more than average.
0:16:55 > 0:17:00So for this place, you really need to plan every penny and pound.
0:17:00 > 0:17:03# When you are broke go and get a loan
0:17:03 > 0:17:05# Take out another mortgage on your home
0:17:05 > 0:17:08# Consolidate so you can afford
0:17:08 > 0:17:12# To go and spend some more when you get bored
0:17:15 > 0:17:17# Ka-ching. #
0:17:19 > 0:17:20Ka-ching indeed!
0:17:20 > 0:17:24But the guide price for this house was £85,000
0:17:24 > 0:17:27and in a sought after area that is not bad value for money.
0:17:27 > 0:17:30If the survey deemed it safe for habitation,
0:17:30 > 0:17:33you could always think about a light renovation.
0:17:33 > 0:17:38The fact it's non-traditional construction will have zero impact on rental figures.
0:17:39 > 0:17:41We invited a local estate agent along
0:17:41 > 0:17:44to ask him about the potential returns.
0:17:45 > 0:17:49The rental market currently is extremely buoyant.
0:17:49 > 0:17:52Something like this would be fetching a 6% to 8% yield.
0:17:52 > 0:17:56I would rent this out for £900 to £950 per calendar month.
0:17:58 > 0:18:00And if a refurbishment was done throughout the inside,
0:18:00 > 0:18:03how much could it sell on for?
0:18:03 > 0:18:05As a non-traditional construction,
0:18:05 > 0:18:08I would put the property on the market for £170,000.
0:18:10 > 0:18:11But if the buyer went the whole hog
0:18:11 > 0:18:15and as well as doing an internal refurbishment, made this into
0:18:15 > 0:18:19a traditional construction, what would that do to its sales value?
0:18:21 > 0:18:23As a traditional construction,
0:18:23 > 0:18:27I would put the property on the market for £200,000 to £210,000.
0:18:28 > 0:18:32A non-traditional construction will not be for everyone.
0:18:32 > 0:18:36Securing the structure and turning this into a traditional house
0:18:36 > 0:18:38will prove costly and time-consuming.
0:18:38 > 0:18:42But once you've done all that, this could be sold on for a profit.
0:18:42 > 0:18:45Alternatively, it could be a great rental machine.
0:18:45 > 0:18:48Let's find out who fancied this one when it went under the hammer.
0:18:50 > 0:18:53Lot 134. Who wants to start me? 100,000 on this.
0:18:54 > 0:19:01What about 80? 80, I've got. 85. 90. 95. 100,000.
0:19:01 > 0:19:03105 at the back. 105.
0:19:03 > 0:19:08110. Are you bidding? How much? 106? OK, 106.
0:19:08 > 0:19:12107. 108. 109 at the back.
0:19:12 > 0:19:16110. 111. 111, back in.
0:19:16 > 0:19:21112. 113. 114. 115.
0:19:22 > 0:19:24116. 117.
0:19:25 > 0:19:27118.
0:19:27 > 0:19:30118. One more? Yes? No.
0:19:30 > 0:19:33It is with you, sir, sitting down with the glasses.
0:19:33 > 0:19:38The bid is £117,000. It is against you standing up. Anybody else?
0:19:38 > 0:19:42If not, 117 for the first, 117 for the second,
0:19:42 > 0:19:45117 for the third and final time.
0:19:45 > 0:19:48Are we all done? Sold. 117.
0:19:49 > 0:19:54With his £117,000, the successful bidder was Kevin.
0:19:54 > 0:19:57He's a dentist who doesn't live around here but is hoping
0:19:57 > 0:20:01his new home and location will give him something to smile about.
0:20:03 > 0:20:06- Kevin, lovely to meet you today. - Hello.- Well done.- Thanks very much.
0:20:06 > 0:20:09- Are you originally from Bexleyheath? - No.
0:20:09 > 0:20:10I have never lived in Bexleyheath.
0:20:10 > 0:20:14It's just that Bexleyheath... I'd been drinking with my friend
0:20:14 > 0:20:17about 10 years ago in Bexleyheath and I knew it was quite nice and green.
0:20:17 > 0:20:21It is all I could afford as well. So that's the reason I bought it.
0:20:21 > 0:20:23I saw where it was and I went to the auction.
0:20:23 > 0:20:27I didn't think I could really afford the house but I put my hand up anyway.
0:20:27 > 0:20:28What was your budget initially?
0:20:28 > 0:20:31I really didn't want to spend more than about 100,000
0:20:31 > 0:20:35but because I like the plot, where it is, next to the big park,
0:20:35 > 0:20:37I kept putting my hand up and I couldn't stop myself.
0:20:37 > 0:20:40You paid £117,000 which meant that you had to find £17,000
0:20:40 > 0:20:44- because obviously you have just told me you only had 100.- That's right.
0:20:44 > 0:20:46How did you manage to come up with the money?
0:20:46 > 0:20:48I took out £15,000 on credit cards.
0:20:48 > 0:20:52I went to the hole in the wall about 100 times and then I sold a few things.
0:20:52 > 0:20:55So I spent about three or four weeks panicking, selling things.
0:20:55 > 0:20:59I managed to get it all together just for that two days to spare.
0:20:59 > 0:21:01Did you sell anything you didn't really want to sell?
0:21:01 > 0:21:04- Yes.- Like?- I sold the kit car I started working on
0:21:04 > 0:21:05because I wanted to finish that.
0:21:05 > 0:21:09But I had to sell bits and pieces of that like the headlights and the carcass.
0:21:09 > 0:21:12I had to sell this bit of dental equipment which
0:21:12 > 0:21:14I bought for 60,000 about six years ago.
0:21:14 > 0:21:16I had to sell that for 15 so that was a big loss.
0:21:16 > 0:21:19I would never recommend raising finance on credit cards
0:21:19 > 0:21:24to purchase property as that is a very expensive way of borrowing.
0:21:24 > 0:21:27The bottom line is, don't borrow more than you can afford.
0:21:27 > 0:21:31But for someone who's had to say goodbye to some of his worldly possessions,
0:21:31 > 0:21:34Kevin sure is philosophical about it.
0:21:34 > 0:21:40He must have felt this place was worth that and going 32 grand over the guide price for.
0:21:40 > 0:21:44Getting auction fever, it can be a risky business,
0:21:44 > 0:21:48but not as risky as buying sight unseen. Kevin!
0:21:48 > 0:21:52I didn't actually go inside. I walked around the area and I looked at the outside,
0:21:52 > 0:21:55- but I didn't come to any viewings because I thought it might put me off.- What?!
0:21:55 > 0:21:58No, wait a minute. Hold on, most people like to look inside
0:21:58 > 0:22:01and hopefully that is what spurs them on.
0:22:01 > 0:22:02But you didn't want to be put off?
0:22:02 > 0:22:05It wasn't the house I was interested in, it is where the land is.
0:22:05 > 0:22:10I like the fact it is at the end of this cul-de-sac and right next to this huge piece of green.
0:22:10 > 0:22:13- And that was enough for you? - The location was good enough for me.
0:22:13 > 0:22:15- So you didn't want the interior to put you off?- No.
0:22:15 > 0:22:19I didn't want to go in and find out it was so awful I couldn't possibly live there.
0:22:19 > 0:22:23What about the fact it is non-traditional construction? Surely, that must have put you off.
0:22:23 > 0:22:25That was a bit of a worry.
0:22:25 > 0:22:29I did a bit of research on the internet to see how much it would cost to fix and it's quite pricey.
0:22:29 > 0:22:31About 40,000 plus.
0:22:31 > 0:22:35But I was hoping that the structure will stay up for two or three years more
0:22:35 > 0:22:37and I can save up the money towards fixing that.
0:22:37 > 0:22:41I have a structural engineer coming in tomorrow to just make sure it is safe to live in for a bit
0:22:41 > 0:22:45but I'm going to do up the interior to a standard where I can actually live here.
0:22:45 > 0:22:48Put a different bathroom suite in, do the kitchen, that kind of thing.
0:22:48 > 0:22:52Then I'll save up the money and rebuild the walls in traditional construction later.
0:22:52 > 0:22:56I'm not going to extend it because for me, it's plenty big enough.
0:22:56 > 0:23:00Do you not think it's worth biting the bullet now while you are doing all the other work?
0:23:00 > 0:23:02You know, the kitchen, replacing the bathroom.
0:23:02 > 0:23:06I just want to do a few minimal things just to make it liveable.
0:23:06 > 0:23:09I am not going to put a flash kitchen in. Just a basic one.
0:23:09 > 0:23:13A few different cabinets and a different bathroom suite. It's not going to cost a lot of money.
0:23:13 > 0:23:16I'll probably only spend 2,000 on the whole thing.
0:23:16 > 0:23:18And do a lick of paint and make it liveable, that's all.
0:23:18 > 0:23:21It is quite expensive to do this kind of work
0:23:21 > 0:23:25and it will definitely take me two or three years to save it up, I think.
0:23:25 > 0:23:27# You didn't look round
0:23:27 > 0:23:31# When I knew it was you. #
0:23:32 > 0:23:35Despite never setting foot in his new home before buying it,
0:23:35 > 0:23:39Kevin seems happy with his purchase, its perfect location
0:23:39 > 0:23:44and the prospect of getting his teeth into some cosmetic work.
0:23:44 > 0:23:47Providing the surveyor declares the property habitable,
0:23:47 > 0:23:50let's hope there are no nasties, structurally speaking.
0:23:50 > 0:23:54For a budget of just 3,000, he plans to make this his home
0:23:54 > 0:23:56while saving up to tackle the structural issue.
0:23:56 > 0:23:59I'd like to do a little bit of remodelling
0:23:59 > 0:24:03and part of that will be putting a couple of extra windows on that side of the house
0:24:03 > 0:24:04so I can enjoy the view more.
0:24:04 > 0:24:06It would be nice to put a garage on the side
0:24:06 > 0:24:10and make the top of the garage a little terrace, so you can sit out there
0:24:10 > 0:24:12and have a cup of tea looking out over the green.
0:24:12 > 0:24:15That would be the kind of remodelling I would like to do.
0:24:15 > 0:24:18- Do you go with your heart a lot? - Yes. Much to my financial detriment.
0:24:18 > 0:24:22But that's OK, it's not the end of the world. I'd rather be happy than rich.
0:24:22 > 0:24:24But obviously, both at the same time would be nice!
0:24:24 > 0:24:28Listen, it's been lovely meeting you today. I'm so excited to see what you do.
0:24:28 > 0:24:30- Good luck with this. - Thanks very much.
0:24:30 > 0:24:34I thought I'd heard it all before and then I met Kevin.
0:24:34 > 0:24:37Not viewing a property before the auction
0:24:37 > 0:24:39because you don't want to be put off the purchase?!
0:24:39 > 0:24:42I know it was all about this location for him
0:24:42 > 0:24:44but really, do not follow his lead, viewers.
0:24:44 > 0:24:48Try before you buy. That is my motto and I'm sticking to it.
0:24:48 > 0:24:51I just hope the survey says you can go ahead
0:24:51 > 0:24:55and live here for now and it doesn't need immediate attention.
0:24:55 > 0:24:59Join us later in the programme and you can find out what happens.
0:25:00 > 0:25:04Coming up, a ground floor commercial unit in Dartmouth, Devon.
0:25:04 > 0:25:06It may look ready for business
0:25:06 > 0:25:09but perhaps its future could be more residential.
0:25:10 > 0:25:12And at this house in Kent,
0:25:12 > 0:25:15did dentist Kevin get his teeth into the work
0:25:15 > 0:25:20and put his money where his mouth is with his £3,000 renovation budget?
0:25:22 > 0:25:26But first, did Stockton-on-Tees couple Kath and Ken bicker their way
0:25:26 > 0:25:29through the renovation or was it a case of happy families all the way?
0:25:34 > 0:25:37Back now to Teesside and the lovely village of Norton,
0:25:37 > 0:25:41where this charming two-bedroom cottage was bought at auction
0:25:41 > 0:25:45for £77,000 by Kath and Ken, who live next door.
0:25:47 > 0:25:50The couple planned to spend six months totally refurbishing
0:25:50 > 0:25:51the cottage for the rental market.
0:25:51 > 0:25:54But agreeing on a budget was proving difficult.
0:25:55 > 0:25:59- We haven't really thought about budget, have we?- I have.- Have you?
0:25:59 > 0:26:03Kath has. Dear me, I hadn't thought about the budget but Kath has. Go on then, Kath.
0:26:03 > 0:26:07- I would say, hopefully, no more than about £5,000.- Right.
0:26:07 > 0:26:11- For the kitchen and bathroom? - I think she's a bit, you know...
0:26:11 > 0:26:13- Ambitious?- Yes.- All right, 10.
0:26:15 > 0:26:19- I've told you that.- Did you? Sorry. It depends on what we've got to do with the kitchen.
0:26:19 > 0:26:22No, you have your squabble. That's fine. Nobody's looking!
0:26:22 > 0:26:25- It depends what we've got to do with the kitchen, really.- Right.
0:26:27 > 0:26:32But Kath and Ken could agree on the need to sort out the shared access issues.
0:26:32 > 0:26:37They also wanted to reclaim some of the garden for their own property.
0:26:37 > 0:26:4110 months after our first visit, we are back and the good news is,
0:26:41 > 0:26:43they are still talking to each other!
0:26:45 > 0:26:49# A compromise will surely help the situation
0:26:49 > 0:26:54# Agree to disagree but disagree to part
0:26:54 > 0:26:56# When after all it's just a compromise
0:26:56 > 0:26:59# Of the things we do for love
0:26:59 > 0:27:01# The things we do for love
0:27:01 > 0:27:04# Like walking in the rain and the snow
0:27:04 > 0:27:06# When there's nowhere to go
0:27:06 > 0:27:10# When you're feeling like a part of you is dying
0:27:11 > 0:27:14# And you're looking for the answer in her eyes
0:27:16 > 0:27:18# You think you're going to break up
0:27:18 > 0:27:21# Then she says she wants to make up. #
0:27:23 > 0:27:28Congratulations to them. The cottage is looking fabulous.
0:27:28 > 0:27:31So has it all come together smoothly and without too many squabbles?
0:27:32 > 0:27:38It was really damp, dark. We didn't realise the extent of the damp.
0:27:39 > 0:27:43Therefore, it needed a complete new damp proof course.
0:27:43 > 0:27:45Replaced all the glass.
0:27:45 > 0:27:49The window frames were solid but we replaced the glass.
0:27:49 > 0:27:52Complete new central heating system.
0:27:52 > 0:27:56Also, we had to have the walls all lined for insulation.
0:27:56 > 0:27:58- And insulated plasterboard. - Insulated plasterboard.
0:27:58 > 0:28:02That all came through when we got the planning permission eventually.
0:28:02 > 0:28:05After we'd spent two weeks taking all the wallpaper off,
0:28:05 > 0:28:09then we decided to cover the walls anyway with insulated plasterboard.
0:28:09 > 0:28:12- But never mind.- No, we didn't. That was... See, we are arguing now.
0:28:12 > 0:28:14That was the instruction from the council.
0:28:14 > 0:28:17We wouldn't have spent all that money on that plasterboard.
0:28:17 > 0:28:21- We would have just had the walls skimmed, wouldn't we? - No, they needed insulating.
0:28:21 > 0:28:25- I know but we didn't just decide to do that, did we? - It's on camera this, Kath!
0:28:28 > 0:28:29Sorry.
0:28:31 > 0:28:34Despite the extra work and the bickering,
0:28:34 > 0:28:38the transformation here is top notch, especially in the kitchen.
0:28:42 > 0:28:45This is the kitchen.
0:28:45 > 0:28:47When we bought the house, the roof was collapsing
0:28:47 > 0:28:49so we had to put a new roof on.
0:28:49 > 0:28:53Raised it up a little bit. Put a window in for some light.
0:28:53 > 0:28:56Put some French doors in to make a nice outlook into the patio.
0:28:56 > 0:28:59We made some nice new kitchen furniture and put some nice
0:28:59 > 0:29:02stone tiles down just to hopefully make it a nice kitchen.
0:29:06 > 0:29:10Kath and Ken have also managed to increase the size of their own garden,
0:29:10 > 0:29:13which their dog, Mack, is clearly delighted about.
0:29:15 > 0:29:18And the cottage still retains a decent outside space.
0:29:21 > 0:29:23The reason we bought the property in the first place
0:29:23 > 0:29:27was so we could get the garden back and sort the shared access out.
0:29:27 > 0:29:31But what we've done here is, we've made a lovely little private area,
0:29:31 > 0:29:34lovely little sun trap, still kept some of the greenery
0:29:34 > 0:29:36and it's just really nice and private.
0:29:37 > 0:29:43Applying for planning permission to alter the kitchen roof took longer than expected.
0:29:43 > 0:29:48So what with the damp proofing, insulation and installing a new central heating system,
0:29:48 > 0:29:51this has been a bigger job than anticipated.
0:29:53 > 0:29:56What effect has that had on their budget?
0:29:56 > 0:29:59Now, was it 10 or was it 5,000?
0:30:00 > 0:30:04We spent about 20,000, which before we started we thought,
0:30:04 > 0:30:08it's going to be, by the time we added things up, that's what we thought.
0:30:08 > 0:30:11We have finished it to quite a high spec as well
0:30:11 > 0:30:14because that was important to us to do that.
0:30:14 > 0:30:17But I think that's fair, the amount. We have come in on just about £20,000.
0:30:19 > 0:30:24The renovation spend of 20,000 added to their purchase price of 77,000
0:30:24 > 0:30:28brings Kath and Ken's total outlay here to £97,000.
0:30:28 > 0:30:32We asked two local estate agents for their thoughts
0:30:32 > 0:30:34on the refurbished property.
0:30:34 > 0:30:37First up, the estate agent who saw the cottage before work began.
0:30:39 > 0:30:43Now, it is absolutely superb. The finish is excellent throughout.
0:30:44 > 0:30:46Re-skimmed, redecorated, good carpets,
0:30:46 > 0:30:48I like the kitchen and the bathroom.
0:30:48 > 0:30:51And of course, this little courtyard in the back
0:30:51 > 0:30:53with its stone paving and flower border is lovely.
0:30:53 > 0:30:56I think the property has been done to an exceptional standard.
0:30:56 > 0:30:59The deep skirting boards, the original doors, the kitchen,
0:30:59 > 0:31:02all make this a very sellable or rentable property.
0:31:03 > 0:31:06Kath and Ken plan to hold on to this one and let it,
0:31:06 > 0:31:12but if they were to sell, what might the cottage fetch on the resale market?
0:31:12 > 0:31:15If I were placing the property on the market today, I would put
0:31:15 > 0:31:19the property on the market for between £150,000 and £160,000.
0:31:19 > 0:31:22I would suggest an asking price of around £160,000.
0:31:24 > 0:31:28Those resale valuations would give the couple a profit before tax
0:31:28 > 0:31:32and expenses of between £53,000 and £63,000.
0:31:32 > 0:31:34Not to be sniffed at.
0:31:34 > 0:31:36What about rental valuations?
0:31:37 > 0:31:40A property of this quality would be very popular indeed.
0:31:40 > 0:31:45I would expect to achieve a rent of around £550 per calendar month.
0:31:45 > 0:31:49Because the property has been done to such an exceptional standard,
0:31:49 > 0:31:53I would rent this property out at £575 per calendar month.
0:31:55 > 0:31:57Those rental valuations would give them
0:31:57 > 0:32:00a yield of around 7%, which is pretty healthy.
0:32:00 > 0:32:04But more importantly for them, they have sorted out the access issues
0:32:04 > 0:32:09for their own home and can now have control over who rents the cottage.
0:32:09 > 0:32:12So what with all the bickering and squabbling,
0:32:12 > 0:32:15call it what you will, will they be doing this again?
0:32:16 > 0:32:18- No, thanks.- No.
0:32:19 > 0:32:22- We want to stay together, don't we?- We do, yes.
0:32:24 > 0:32:26# You know we made a vow
0:32:26 > 0:32:30# To leave one another never. #
0:32:39 > 0:32:43I'm in Dartmouth in Devon and what can I say?
0:32:43 > 0:32:47It doesn't get much more picturesque than this.
0:32:47 > 0:32:50Situated at the mouth of the River Dart,
0:32:50 > 0:32:54steeped in naval history, it really is absolutely charming.
0:32:54 > 0:32:57What a fantastic place to own a property.
0:33:05 > 0:33:08Dartmouth is in the most beautiful setting
0:33:08 > 0:33:13and for the past thousand years has made its mark on history
0:33:13 > 0:33:15as the base from which explorers and merchants
0:33:15 > 0:33:18sailed for destinations around the globe.
0:33:19 > 0:33:23Many of the narrow streets and historic buildings in the town remain,
0:33:23 > 0:33:27transporting the many tourists who come here back in time.
0:33:28 > 0:33:30And for all boating enthusiasts,
0:33:30 > 0:33:34the annual Dartmouth Regatta every August is a popular event.
0:33:37 > 0:33:41Well, just a short seagull's flap from the front on one of the main roads in Dartmouth
0:33:41 > 0:33:43is the property I am here to see.
0:33:43 > 0:33:46The guide price, £45,000 to £65,000.
0:33:46 > 0:33:50In Dartmouth, that really doesn't get you a lot. So what was on offer?
0:33:50 > 0:33:55Well, it's this former bar and the freehold of the building.
0:33:55 > 0:33:56Let's take a look inside.
0:33:57 > 0:34:01Well, a good starting point if you are thinking about operating this
0:34:01 > 0:34:04as some kind of commercial business, because what you want to do is
0:34:04 > 0:34:07maximise the amount of frontage, and that is exactly what this does.
0:34:07 > 0:34:11This big set of double glazed windows right along the front.
0:34:11 > 0:34:15Then into the basically small bar area. The front area here.
0:34:15 > 0:34:17The floor looks like it's been recently redone.
0:34:17 > 0:34:20That is actually quite nice to have that slate effect.
0:34:20 > 0:34:22Then here is the bar.
0:34:22 > 0:34:27I mean, pretty much, apart from a few bits and pieces,
0:34:27 > 0:34:30it could just have been operated last night.
0:34:30 > 0:34:33- HORN SOUNDS - Time, ladies and gentlemen, please.
0:34:34 > 0:34:38Bottles of water, old equipment, stuff like that.
0:34:38 > 0:34:41It is always a bit strange to wander into these kinds of places when they
0:34:41 > 0:34:46are actually not operating but when it comes to actually using it again,
0:34:46 > 0:34:49well, it looks like it would not take much to get it going.
0:34:52 > 0:34:56It does seem as though all that's needed here to raise the bar
0:34:56 > 0:35:00on this bar is a basic refurbishment.
0:35:00 > 0:35:03Everything seems generally in good condition.
0:35:03 > 0:35:08The toilet and basin fittings are reasonably modern, so wouldn't need replacing.
0:35:08 > 0:35:10And with that wide glass frontage,
0:35:10 > 0:35:13the place would certainly have kerb appeal.
0:35:13 > 0:35:17So, hopefully, it is more a Tequila Sunrise than a sundowner.
0:35:18 > 0:35:21# It's another tequila sunrise
0:35:22 > 0:35:27# Staring slowly across the sky
0:35:29 > 0:35:31# Said goodbye. #
0:35:32 > 0:35:36But remember, the guide price of £45,000 to £65,000
0:35:36 > 0:35:39offers the freehold of the entire building
0:35:39 > 0:35:43and as the other three floors are a long-term lease,
0:35:43 > 0:35:46this ground floor area is all you have to play with.
0:35:46 > 0:35:49At the rear of the bar, you have got this little area here.
0:35:49 > 0:35:54Now, it has currently got the loos in it and this roof.
0:35:54 > 0:35:57My guess is that at some point this was a courtyard.
0:35:57 > 0:36:00It has actually been covered and it's got this glass roof
0:36:00 > 0:36:03and it is a useful space.
0:36:03 > 0:36:06In terms of a bar, it is pretty much what you need.
0:36:06 > 0:36:09But maybe there are other options for this building.
0:36:09 > 0:36:14Properties in Dartmouth are, as I've said, quite expensive.
0:36:14 > 0:36:18Even a flat here would be worth a lot more than that guide price.
0:36:18 > 0:36:22So could you consider converting this to residential use?
0:36:22 > 0:36:25It would all be about getting the right planning application in
0:36:25 > 0:36:28and that change of use from a commercial premises to residential
0:36:28 > 0:36:32and then doing the conversion and just working out the numbers.
0:36:32 > 0:36:35But as an option, I think it is definitely worth considering.
0:36:35 > 0:36:37Something else to bear in mind is that
0:36:37 > 0:36:40given we are in delightful Dartmouth,
0:36:40 > 0:36:43the possibilities of converting it to residential use
0:36:43 > 0:36:47and turning this place into a high spec ground floor flat
0:36:47 > 0:36:51could also open it up to the lucrative holiday let market.
0:36:51 > 0:36:54So for this property guided at £45,000 to £65,000,
0:36:54 > 0:36:57there are quite a few options to consider.
0:36:57 > 0:37:01Time to get a second opinion from a local property expert.
0:37:02 > 0:37:06The property was a bar and of course it could be a bar again.
0:37:06 > 0:37:09I would just be slightly nervous that the main concentration of footfall
0:37:09 > 0:37:11is a couple of hundred metres away
0:37:11 > 0:37:14and doesn't drift up this particular road.
0:37:14 > 0:37:18It's a potential problem that could affect the income generated by the bar.
0:37:18 > 0:37:22But once updated, what could it sell for?
0:37:22 > 0:37:25Commercial property can be slightly trickier to sell than everyday
0:37:25 > 0:37:28residential but nevertheless I would expect the unit
0:37:28 > 0:37:32when it is fully refurbished as a jazzy and boutique sort of bar
0:37:32 > 0:37:37to be on the market at around £115,000 to £220,000.
0:37:37 > 0:37:43Graham also reckons the rental returns could add up to £10,000 per year.
0:37:43 > 0:37:47But would turning this place into a residential unit be a more profitable option?
0:37:47 > 0:37:51As a one-bedroom flat, refurbished and lovely,
0:37:51 > 0:37:58I would expect it to be on the market for around £110,000 or £115,000.
0:37:58 > 0:38:02Renting out a one-bed flat could bring in an income of £500 per
0:38:02 > 0:38:08calendar month but as a holiday let could generate up to £375 per week.
0:38:08 > 0:38:11So there is plenty of food for thought for the new owner.
0:38:12 > 0:38:16So, do you keep it as a bar? Do you convert it into a flat?
0:38:16 > 0:38:21Either way, it's an opportunity to get into the Dartmouth property market for not much money
0:38:21 > 0:38:24and I guess it is down to whoever bought it.
0:38:24 > 0:38:26Let's find out who that was when it went under the hammer.
0:38:30 > 0:38:33Down to sunny Dartmouth. We've had plenty of interest.
0:38:33 > 0:38:38We've seen the cars turn up. We know you are here to bid on this one so what shall we say? 40.
0:38:38 > 0:38:42Straight down the aisle at the very back. 40. At 40.
0:38:42 > 0:38:45At 42. 42. 43.
0:38:45 > 0:38:49At 43. 44. 45 against you.
0:38:49 > 0:38:5446. 47. 47,000. At 47.
0:38:54 > 0:38:5648. A fresh bid.
0:38:56 > 0:39:01It is against you, sir. 48. Back right has it at 48. At 48,000. 49.
0:39:01 > 0:39:0649. 50, I'll take. At 50. At 51.
0:39:06 > 0:39:09At 51 she goes. 51.
0:39:09 > 0:39:14There was some confusion towards the end of the auction as someone who appeared to be bidding wasn't.
0:39:14 > 0:39:16At 52, you are in.
0:39:16 > 0:39:22For the first time. Second time. And selling at £52,000 to you.
0:39:22 > 0:39:23Congratulations.
0:39:23 > 0:39:26However, at the end of the auction, what was clear
0:39:26 > 0:39:31was that the final successful bid of £52,000 was made by Lorna.
0:39:32 > 0:39:37She was born and bred in Dartmouth and used to run an art gallery.
0:39:37 > 0:39:39So what drew her to buying this property?
0:39:39 > 0:39:41I met up with her to find out more.
0:39:43 > 0:39:46- Lorna, lovely to meet you.- Good to meet you too.- Congratulations.
0:39:46 > 0:39:49- Thank you.- So, why did you want to buy this place?
0:39:49 > 0:39:52Not lots of thought before.
0:39:52 > 0:39:56It came up at auction and it was the first time I had ever been to an auction.
0:39:56 > 0:40:02So I went down to see how it all operated and I decided to buy it.
0:40:02 > 0:40:06Now, maybe a two-up two-down terrace or a little bungalow
0:40:06 > 0:40:09or something you would buy possibly a bit randomly,
0:40:09 > 0:40:12but not a business and stuff like this.
0:40:12 > 0:40:15You don't just randomly buy a business!
0:40:15 > 0:40:19There was a little bit of prior thought to it, obviously.
0:40:19 > 0:40:20But not lots.
0:40:20 > 0:40:25It all sort of happened quite quickly. But I'm pleased with it.
0:40:25 > 0:40:30- Is this something you have hankered to do for a while?- No.
0:40:30 > 0:40:33It is a new venture and it's kind of off-the-cuff.
0:40:34 > 0:40:38I used to know it as a bar and it used to be quite popular back in the day.
0:40:38 > 0:40:42So hopefully we can get things going and have a nice social environment.
0:40:42 > 0:40:45So what was it that appealed about running a bar?
0:40:46 > 0:40:50There is history to it, really. A good friend of mine used to run it.
0:40:51 > 0:40:55So I have been this side of the bar quite a lot, really.
0:40:55 > 0:40:58It is just a nice opportunity to be the other side of the bar.
0:40:58 > 0:41:04It's going to be just a really nice, chilled out, start to your evening kind of bar.
0:41:04 > 0:41:07You can have some cocktails, come and have some champagne or a beer
0:41:07 > 0:41:10or whatever you fancy and then carry on from there.
0:41:10 > 0:41:13- There are a lot of bars in Dartmouth.- There are.
0:41:13 > 0:41:16How are you going to make yourself stand out?
0:41:16 > 0:41:20I think just by trying to provide a really nice atmosphere and keeping it local.
0:41:20 > 0:41:24Lots of promotions and fun evenings.
0:41:24 > 0:41:27Then, hopefully, it'll get people in.
0:41:27 > 0:41:33Lorna seems quite relaxed about a business that is totally new to her.
0:41:33 > 0:41:35But there are still legal issues to deal with
0:41:35 > 0:41:39before she can open the doors to her first customers.
0:41:39 > 0:41:41I have to do a licensing course.
0:41:41 > 0:41:44You have to pass an exam and then you have to have a police check.
0:41:44 > 0:41:46Once you've got that, you can have a personal licence
0:41:46 > 0:41:49and once you have a personal licence you can have a premise licence.
0:41:49 > 0:41:52- And it is not a given that you will get that?- No.
0:41:52 > 0:41:54It is up to the town council.
0:41:54 > 0:41:57And would they potentially look and say, there are a lot of bars
0:41:57 > 0:42:00already, we don't need another one? Could they say that or not?
0:42:00 > 0:42:03I think because it has previously been a bar and it exists as a bar,
0:42:03 > 0:42:06then hopefully it should go through fine.
0:42:06 > 0:42:10In terms of staff, are you going to take the staff on?
0:42:10 > 0:42:14There aren't any existing staff. So I will be on the lookout for new staff.
0:42:14 > 0:42:17But I've put some feelers out
0:42:17 > 0:42:19and hopefully we will get a good team together.
0:42:19 > 0:42:22Lorna has a good friend who also runs a bar
0:42:22 > 0:42:26and will be showing her how to kit out her new venture from installing
0:42:26 > 0:42:30items such as fridges, an ice-maker, dishwasher and bar furniture.
0:42:30 > 0:42:34Lorna does have a budget of around 10 grand
0:42:34 > 0:42:39but knows it will take whatever it takes to get this bar buzzing again,
0:42:39 > 0:42:42and, hopefully, in the space of a couple of months.
0:42:42 > 0:42:45As a moneymaking venture, she is aware this could be risky.
0:42:49 > 0:42:54Initially, my first thought was to make it into a little flat.
0:42:55 > 0:42:59But then having come in and seen how ready it is to go as a bar,
0:42:59 > 0:43:03it feels like we should have a go at running a bar.
0:43:03 > 0:43:06If it doesn't work, turn it into a flat after that.
0:43:06 > 0:43:10Are you like this in all your life in terms of your spontaneity?
0:43:10 > 0:43:14I am quite spontaneous, yes, and fairly erratic.
0:43:14 > 0:43:16I kind of like to go with things that come up.
0:43:16 > 0:43:19If you'd have asked me a couple of months ago,
0:43:19 > 0:43:23I would have had no clue any of this was going to be in my life.
0:43:23 > 0:43:26- Good on you.- Kind of think on your feet and keep going.
0:43:26 > 0:43:30- And open-minded to new opportunities.- Absolutely, yes.
0:43:30 > 0:43:32Listen, genuinely, good luck with this.
0:43:32 > 0:43:35- We will be back to see how you get on.- Thank you.
0:43:37 > 0:43:41Well, you've certainly got to admire Lorna, but there are a few
0:43:41 > 0:43:45challenges ahead before she is serving her first cocktail.
0:43:45 > 0:43:50Sorting the place out, training staff, getting her licence. Wow!
0:43:50 > 0:43:55How is she going to get on? Find out later in the show.
0:43:59 > 0:44:02It's been a while since we last saw those properties.
0:44:02 > 0:44:06Do they look any different? Has the money and time been well spent?
0:44:06 > 0:44:08Let's go back and find out.
0:44:10 > 0:44:14Now, back to Kent where earlier we saw Kevin, a dentist,
0:44:14 > 0:44:18buy this three-bedroom semi for 117,000.
0:44:19 > 0:44:24# I want a little sugar in my bowl. #
0:44:24 > 0:44:27He bought the house to move in himself,
0:44:27 > 0:44:31although he had a very peculiar approach to viewing it.
0:44:31 > 0:44:34I didn't come to any of the viewings because I thought it might put me off.
0:44:34 > 0:44:36What?! Wait a minute. Hold on.
0:44:36 > 0:44:40Most people like to look inside and, hopefully, that is what spurs them on.
0:44:40 > 0:44:41But you didn't want to be put off?
0:44:41 > 0:44:44It wasn't the house I was interested in, it's where the land is.
0:44:44 > 0:44:49I like the fact it's at the end of this cul-de-sac and is right next to this huge piece of green.
0:44:49 > 0:44:52- And that was enough? - The location was good enough for me.
0:44:52 > 0:44:54- So you didn't want the interior to put you off?- No.
0:44:54 > 0:44:58I didn't want to go in and find out it was so awful that I couldn't possibly live there.
0:44:58 > 0:45:01OK, it was certainly unconventional,
0:45:01 > 0:45:03especially when the house in question
0:45:03 > 0:45:05was of non-traditional construction.
0:45:05 > 0:45:10Kevin planned to put off dealing with that particular problem for a couple of years.
0:45:10 > 0:45:14He aimed to just update throughout with a budget of 2,000.
0:45:14 > 0:45:18So 14 months later, we dropped in to see the progress.
0:45:18 > 0:45:21# Can't you see
0:45:21 > 0:45:24# What I am thinking
0:45:24 > 0:45:27# Can't you see
0:45:27 > 0:45:30# What's in the stars?
0:45:31 > 0:45:34# No, it's not too late
0:45:34 > 0:45:36# To change your way of living. #
0:45:36 > 0:45:39OK, so it's not quite finished
0:45:39 > 0:45:42but that doesn't mean Kevin's not been very busy.
0:45:42 > 0:45:45I've completely re-plumbed the building from scratch.
0:45:45 > 0:45:47There is no old plumbing at all.
0:45:47 > 0:45:51I then put a new bathroom in at the same time and also replaced the boiler with a new boiler.
0:45:51 > 0:45:55And replaced most of the heating system, the bits that needed replacing.
0:45:55 > 0:46:00Then I replaced all the electrics because the wiring was very bad.
0:46:00 > 0:46:04I thought hopefully I could replace a bit of it but it turned out I had to replace all the wiring
0:46:04 > 0:46:08and that meant ripping out loads and loads and some of it was quite hard to get to.
0:46:08 > 0:46:12But in the end, I managed it all right and I've got the certificates to prove it so it's safe.
0:46:12 > 0:46:15So we're not going to get electrified during this interview!
0:46:15 > 0:46:17# Ain't that good news
0:46:17 > 0:46:19# Yeah, ain't that news? #
0:46:19 > 0:46:20Glad to hear it!
0:46:20 > 0:46:24I'm impressed by Kevin's enthusiasm for getting stuck into the work here.
0:46:24 > 0:46:27He got professionals in to oversee all the electrical side
0:46:27 > 0:46:31and the gas installation but he's done a fair bit of labouring work himself.
0:46:31 > 0:46:35And as you would expect from a dentist, he's handy with a drill!
0:46:35 > 0:46:37It's much easier drilling holes in walls
0:46:37 > 0:46:40because they stay where they are and they don't move and complain.
0:46:40 > 0:46:44It's really good. You just drill the hole and that's it. They don't scream or anything!
0:46:44 > 0:46:48And Kevin's list of jobs just goes on and on.
0:46:48 > 0:46:51The next stage was to replace the roof
0:46:51 > 0:46:54because the old roof was like this sort of aluminium sheet type material
0:46:54 > 0:46:57so I replaced that with a completely new roof.
0:46:57 > 0:47:01After that I had to re-clad in this fibreglass material that needs no maintenance.
0:47:01 > 0:47:06I also replaced all the windows with double glazing.
0:47:06 > 0:47:08After that, I did the bedroom.
0:47:08 > 0:47:11Completely redid that from scratch with a new ceiling.
0:47:13 > 0:47:16But what about those structural concerns?
0:47:16 > 0:47:19There were initial worries about its type of construction and he was
0:47:19 > 0:47:23rather concerned he might even have to knock it down and start again.
0:47:23 > 0:47:27Happily, however, the property is sound and requires no rebuilding.
0:47:27 > 0:47:31The survey revealed the fabric of the building was in good condition.
0:47:31 > 0:47:35Kevin bought this house without even viewing it. So it was a huge gamble.
0:47:35 > 0:47:37It would appear that he's got away with it
0:47:37 > 0:47:40but please don't try this at home.
0:47:40 > 0:47:44Anyway, with a huge stack of work under his belt, what's next?
0:47:45 > 0:47:49I have to do the room I'm sitting in which is the dining room
0:47:49 > 0:47:51and then the living room.
0:47:51 > 0:47:54Then I'm going to go upstairs and sort out the other two bedrooms.
0:47:54 > 0:47:57After that, I'm going to sort out the garden,
0:47:57 > 0:48:00back and front and actually put up a fence. That will be quite handy.
0:48:00 > 0:48:02To stop dogs coming in!
0:48:02 > 0:48:05All this work sounds like a budget buster.
0:48:05 > 0:48:08Kevin was originally going to spend just two grand on making
0:48:08 > 0:48:11the place habitable, but that plan is now out of date?
0:48:11 > 0:48:15I've probably spent about 40,000 so far
0:48:15 > 0:48:17and I think another 10 should finish it.
0:48:17 > 0:48:20So I think about 50,000 to complete everything.
0:48:20 > 0:48:23Which is less than I thought.
0:48:23 > 0:48:26Not bad then, especially considering that buying it blind could have
0:48:26 > 0:48:30left him with serious problems he would need to throw money at.
0:48:30 > 0:48:33He reckons he's got another nine months of work left to do
0:48:33 > 0:48:35but he's in no great hurry.
0:48:36 > 0:48:38I'm living in the house.
0:48:38 > 0:48:41I haven't got a mortgage so there is no financial pressure
0:48:41 > 0:48:43to do it up to rent or anything like that.
0:48:43 > 0:48:45It is my main residence.
0:48:45 > 0:48:47Also, I wanted to do it as and when I could afford it.
0:48:47 > 0:48:52One of the most important stages was to get the kitchen finished
0:48:52 > 0:48:55because Kevin lived here while the work was being done.
0:48:55 > 0:48:57Well, it is really nice to have a kitchen.
0:48:57 > 0:49:00I only finished it yesterday so it's a novelty for me.
0:49:00 > 0:49:03I had to replace the whole thing. There was nothing worth saving in it.
0:49:03 > 0:49:06I had to sort out all the walls and ceilings.
0:49:06 > 0:49:09New ceiling, new walls and none of the walls were straight.
0:49:09 > 0:49:11They were like rippling all over the place.
0:49:11 > 0:49:14I sorted that out and decided to put a fairly neutral
0:49:14 > 0:49:16and modern kitchen in, as you can see.
0:49:16 > 0:49:18It's all creamy, gloss, slab type doors.
0:49:18 > 0:49:22And I wanted everything integrated so the fridge and washer dryer
0:49:22 > 0:49:24and washing machine are all integrated.
0:49:24 > 0:49:28I kept all the colours more relaxing so it's like a Zen-like atmosphere,
0:49:28 > 0:49:31so I might fall asleep while frying an egg!
0:49:32 > 0:49:34Let's hope not!
0:49:34 > 0:49:37But will two property experts find Kevin's work as relaxing
0:49:37 > 0:49:40and tranquil, or will he end up with egg on his face?
0:49:40 > 0:49:44Having had a look around the property, I think what he's done so far has been great.
0:49:44 > 0:49:46I saw it in its original condition
0:49:46 > 0:49:51and certainly the progression from that to now has been fantastic.
0:49:51 > 0:49:54I think if the property is finished to the same sort of standard
0:49:54 > 0:49:56as the kitchen and bathroom have been finished to,
0:49:56 > 0:50:00the property should be easy to sell for a family or to rent.
0:50:00 > 0:50:03The standard of the finish so far in the kitchen,
0:50:03 > 0:50:06bathroom and bedroom show a great attention to detail and you can
0:50:06 > 0:50:10see the finished product of the whole house is going to be phenomenal.
0:50:10 > 0:50:12So what about values then?
0:50:12 > 0:50:15What do they think it could sell on for once it's all finished?
0:50:15 > 0:50:18Remember, Kevin thinks he'll spend 50 grand on the work
0:50:18 > 0:50:26so added to the 117,000 he paid, that is a total outlay of £167,000.
0:50:26 > 0:50:29This property, I think, could re-sale, once all finished,
0:50:29 > 0:50:31in the region of £190,000.
0:50:31 > 0:50:34A property like this would re-sale in the open market
0:50:34 > 0:50:38for £180,000 to £190,000.
0:50:38 > 0:50:42That sounds pretty good. I didn't expect to make a profit because I bought it to live in.
0:50:42 > 0:50:46Obviously, it would be nice if I made a small one. That's pretty good news.
0:50:46 > 0:50:49No wonder he's impressed because those figures could give him
0:50:49 > 0:50:54a possible profit of 23,000, minus the usual tax and fees.
0:50:54 > 0:50:56Of course, he's living in the property already
0:50:56 > 0:51:00and he always aimed to keep this as his new home.
0:51:00 > 0:51:02But could those figures tempt him to consider selling?
0:51:02 > 0:51:05I was intending to live here a long time
0:51:05 > 0:51:07but I might possibly sell it next year.
0:51:07 > 0:51:11I'll just have to see how things go. It depends on circumstances.
0:51:11 > 0:51:14You can't predict those, can you? That's good news, though.
0:51:17 > 0:51:20Back now to the beautiful south coast of Devon and the historic
0:51:20 > 0:51:24town of Dartmouth where earlier we met local lady, Lorna.
0:51:24 > 0:51:27She had gone to her first ever auction
0:51:27 > 0:51:31and bought her first ever auction property for £52,000
0:51:31 > 0:51:35and it wasn't just a normal two-up two-down terraced house.
0:51:35 > 0:51:40Lorna now owns a commercial unit which had until recently been a bar.
0:51:40 > 0:51:45Plus the freehold of this huge building with the upper three floor maisonette already rented out.
0:51:45 > 0:51:48Despite having no previous experience,
0:51:48 > 0:51:51Lorna had plans to make downstairs a bar again.
0:51:51 > 0:51:55What was it that appealed about running a bar?
0:51:55 > 0:51:57I think there is history to it, really.
0:51:57 > 0:52:00A good friend of mine used to run it.
0:52:00 > 0:52:04So I've been this side of the bar quite a lot, really.
0:52:04 > 0:52:08It is just a nice opportunity to be the other side of the bar.
0:52:08 > 0:52:12For an approximate renovation budget of £10,000, Lorna planned
0:52:12 > 0:52:16to have the doors open for her first customers in two months.
0:52:16 > 0:52:18But before she could serve those first drinks,
0:52:18 > 0:52:20she would have to jump through the various hoops
0:52:20 > 0:52:24involved in the legal applications to run a licensed business.
0:52:26 > 0:52:30It was not for another 18 months that we finally caught up with Lorna
0:52:30 > 0:52:34to find out just what has happened to her plans for this former bar.
0:52:36 > 0:52:39Well, there is no rekindled bar here
0:52:39 > 0:52:43but there are a few clues as to what Lorna has done with the place.
0:52:47 > 0:52:51Yes. She has now gone into the eatery business,
0:52:51 > 0:52:53with pizzas top of the bill.
0:52:53 > 0:52:55There is a seating area at the front
0:52:55 > 0:52:58while behind the counter there's a new kitchen.
0:52:58 > 0:53:01The back has been re-tiled and is now the storage area
0:53:01 > 0:53:04and it all looks clean, bright and modern.
0:53:04 > 0:53:08Over to Lorna now to find out why the plans for a new bar
0:53:08 > 0:53:11did not, in this case, deep pan out!
0:53:11 > 0:53:14I am from Dartmouth originally and I've been here a long time and I had
0:53:14 > 0:53:18got to a point where I just wanted to be somewhere else for a little while.
0:53:18 > 0:53:20So I moved to Bristol.
0:53:20 > 0:53:24So I wasn't going to be here, really, so it was more a case of having
0:53:24 > 0:53:28to have a change of heart due to personal circumstances.
0:53:28 > 0:53:32But with Lorna now living just under 90 miles away,
0:53:32 > 0:53:35she decided the former bar needed a change of use
0:53:35 > 0:53:40and that's where the new lease holder for the restaurant, Deano, came in.
0:53:40 > 0:53:44I was approached by Deano and he was quite keen to put together
0:53:44 > 0:53:48a food outlet so that is how it came about, really.
0:53:48 > 0:53:52Ever since, we have been working together in order to get it off the ground.
0:53:52 > 0:53:56Lorna's leased the place out to Deano on the basis that he would do the refit.
0:53:56 > 0:54:01But it seems the takeaway business wasn't the first option to spring to mind.
0:54:01 > 0:54:04We kind of thought we would get some food involved
0:54:04 > 0:54:08and run a very restaurant based establishment with a bar.
0:54:08 > 0:54:13Obviously, we had to go through licensing and re-establishing the licence on the place.
0:54:13 > 0:54:14And then it evolved from there.
0:54:14 > 0:54:18We wanted to do more food and combine it with takeaway as well,
0:54:18 > 0:54:21up until what we've got today.
0:54:21 > 0:54:23The layout here has been changed
0:54:23 > 0:54:26but the counter is from the original bar.
0:54:26 > 0:54:29Deano paid for and oversaw the fitting out.
0:54:29 > 0:54:31Now the work is completed, the eatery
0:54:31 > 0:54:34and takeaway is already open for business.
0:54:34 > 0:54:36The change of plans from the bar to a restaurant
0:54:36 > 0:54:40and then to a combined eat in and hot food takeaway has meant
0:54:40 > 0:54:44having to resubmit the planning applications on each occasion.
0:54:44 > 0:54:47This caused a delay of over a year.
0:54:47 > 0:54:50The hardest part of the process, I think,
0:54:50 > 0:54:54has been dealing with local authorities in order to get the right
0:54:54 > 0:54:59planning applications in and the right licences
0:54:59 > 0:55:04and all the Ts crossed and the Is dotted has been quite a long slog.
0:55:04 > 0:55:09Applying for a licence cost Lorna in the region of £2,000, so added
0:55:09 > 0:55:14to her purchase price of £52,000, her outlay is around £54,000.
0:55:14 > 0:55:18Despite being leased to Deano, Lorna's paying for the upkeep,
0:55:18 > 0:55:21repairs and insurance for the pizza parlour.
0:55:21 > 0:55:23Quite favourable terms for him.
0:55:23 > 0:55:28Lorna is happy with the outcome and reckons selling pizza will be a good way to make some dough!
0:55:28 > 0:55:32She plans to stick with this setup through thick...crust, or thin!
0:55:33 > 0:55:36I think this is definitely a long-term investment.
0:55:36 > 0:55:39I have formed good working relationships
0:55:39 > 0:55:43and I'm happy with how it's worked out and I hope
0:55:43 > 0:55:48we can run a good viable business for the town for a long time to come.
0:55:48 > 0:55:50Lorna has spent £54,000 on the business
0:55:50 > 0:55:54so has it been a good investment of her time and money?
0:55:55 > 0:55:59Time to find out what two local property experts think,
0:55:59 > 0:56:02beginning with the one who saw the place first time round.
0:56:03 > 0:56:07First impressions walking in today are that it is a nice-sized tidy unit
0:56:07 > 0:56:11with the essentials in the right place,
0:56:11 > 0:56:14working nicely and flowing well.
0:56:16 > 0:56:18It has certainly been renovated to a very high standard.
0:56:18 > 0:56:21It has been improved a great deal.
0:56:21 > 0:56:24The property has been fitted out to include a kitchen area
0:56:24 > 0:56:27and obviously a seating area at the front which offers
0:56:27 > 0:56:30the best of both worlds, both takeaway and eat in.
0:56:30 > 0:56:33Lorna sees this as a long-term investment
0:56:33 > 0:56:37so what sort of rental returns can she expect?
0:56:37 > 0:56:41I happen to know that this particular lease is quite tenant friendly.
0:56:41 > 0:56:47Therefore, the rent is likely to be the better part of £1,000 per calendar month.
0:56:47 > 0:56:49My rental valuation of the unit
0:56:49 > 0:56:52would be approximately £850 per calendar month.
0:56:52 > 0:56:54Obviously, subject to lease terms.
0:56:54 > 0:56:57Yes, I think 875 to about 1,000 a month
0:56:57 > 0:56:59is probably what I was expecting.
0:56:59 > 0:57:01So that's good to hear.
0:57:01 > 0:57:04The valuations mean there is a possible rental return
0:57:04 > 0:57:08of between £10,000 and £212,000 per year,
0:57:08 > 0:57:13giving her a stunning potential yield of 18% to 22%.
0:57:13 > 0:57:17But remember, Lorna will be paying for the general maintenance of the shop.
0:57:17 > 0:57:20What if she decided to sell the business on?
0:57:20 > 0:57:24I think the capital worth would be in the region of about £100,000.
0:57:24 > 0:57:27If the property were to be sold in today's market,
0:57:27 > 0:57:30I would expect it to achieve somewhere in the region of £100,000.
0:57:30 > 0:57:32I am happy to hear that.
0:57:32 > 0:57:36It is nice to know that my investment is fairly safe.
0:57:36 > 0:57:42So selling the business on could generate a healthy £46,000 pre-tax profit.
0:57:42 > 0:57:46Although organising this restaurant and takeaway business may have been a long haul,
0:57:46 > 0:57:50Lorna can already see the perks this venture might bring in.
0:57:50 > 0:57:55My hopes for this project are in the short term, lots of free pizzas!
0:57:55 > 0:57:59And in the long-term, a good viable business.
0:58:02 > 0:58:05Well, we hope you've enjoyed watching Homes Under The Hammer
0:58:05 > 0:58:07and learned a few lessons along the way.
0:58:07 > 0:58:10We'll see you next time for some more hot properties
0:58:10 > 0:58:12and maybe some that aren't quite so hot.
0:58:12 > 0:58:14- Bye for now.- Goodbye.