0:00:02 > 0:00:05Hello. Buying property can have its highs and lows.
0:00:05 > 0:00:07It's not always as easy as it looks.
0:00:07 > 0:00:10There is one element in the process you can skip.
0:00:10 > 0:00:14You can avoid the dreaded property chain by buying at auction.
0:00:39 > 0:00:43There are all sorts of properties going to the auctions these days.
0:00:43 > 0:00:47There certainly are and it's all the variety that keeps us riveted.
0:00:47 > 0:00:52Yes, so here are the three properties that captivated the buyers on today's show.
0:00:53 > 0:00:59'This charming two-bed semi in Chatham, Kent, shows great potential.'
0:00:59 > 0:01:02There's so much you could do in this room.
0:01:03 > 0:01:07'This spacious Durham end terrace shows its age.'
0:01:07 > 0:01:12Well, the house certainly has some interesting period features.
0:01:13 > 0:01:18'And this Derbyshire mid-terrace shows its true colours.'
0:01:18 > 0:01:23What you have got at the back here which is absolutely extraordinary is a huge garden.
0:01:24 > 0:01:28'All these properties have been sold at auction. We'll find out
0:01:28 > 0:01:33- 'who bought them and what they paid when they went under the hammer.' - Sold at the back.
0:01:38 > 0:01:41Today, I'm on the Kent coast, Chatham to be precise,
0:01:41 > 0:01:45a town proud of its maritime heritage.
0:01:45 > 0:01:50It's now undergoing a resurgence thanks in part to a high-speed train link
0:01:50 > 0:01:54which can whisk you to London St Pancras in under 40 minutes.
0:01:55 > 0:01:59I'm here to see a property today on this busy main road,
0:01:59 > 0:02:06but on the plus side, you overlook this wonderful green space and there's a little park over there.
0:02:06 > 0:02:11Here it is, a large, two-bedroom detached house, quite handsome, I would say,
0:02:11 > 0:02:15and it had a guide price of £135,000 to £140,000.
0:02:17 > 0:02:20# He's my big, bad, handsome man... #
0:02:21 > 0:02:26Oh, I do love a broad-shouldered, double-fronted property.
0:02:26 > 0:02:28It gets me going every time!
0:02:28 > 0:02:32Now, parking on this busy road could be an issue,
0:02:32 > 0:02:36but for now, I can't see past the rugged good looks of this old charmer.
0:02:40 > 0:02:44Oh, so many stairs to negotiate and if you wanted to go upstairs,
0:02:44 > 0:02:47a load more and very steep indeed.
0:02:47 > 0:02:51Now, the inside of the property, well, it's gorgeous.
0:02:51 > 0:02:56What I love about this house is the symmetry and the proportions of the room,
0:02:56 > 0:02:58a beautiful, square room.
0:02:58 > 0:03:01A bit of worrying damp in this corner.
0:03:01 > 0:03:07It's definitely coming from downwards going up, so rising damp, I'd certainly get that looked at.
0:03:07 > 0:03:11But on the upside, look at this amazing, chunky fireplace.
0:03:11 > 0:03:14It's beautiful. You've got some lovely original tiles here.
0:03:14 > 0:03:17In fact, I think it's solid marble, really beautiful.
0:03:17 > 0:03:21I don't reckon much to the brick effect wallpaper.
0:03:21 > 0:03:26There's so much you could do in this room, so, so far, a very good start.
0:03:26 > 0:03:29# And it keeps getting better... #
0:03:30 > 0:03:36A chunky fireplace in a hunky house and there are two more reception rooms on this ground floor.
0:03:36 > 0:03:39I can feel my heart racing and then...
0:03:40 > 0:03:42..there's the kitchen!
0:03:43 > 0:03:48And there's me banging on about the wonderful proportions this house has!
0:03:48 > 0:03:51This kitchen is just too small.
0:03:51 > 0:03:53You have got a bit of a problem
0:03:53 > 0:03:57because this wall is an original exterior wall and it's about this thick.
0:03:57 > 0:04:01You've got a massive chimney breast on the other side to negotiate,
0:04:01 > 0:04:04so it would be quite a big job getting this down.
0:04:04 > 0:04:10I'm just wondering, if you wanted to make this kitchen larger, if there's another solution?
0:04:10 > 0:04:13THEME MUSIC: "2001 - A Space Odyssey"
0:04:16 > 0:04:20Another bonus with this property is the garden.
0:04:20 > 0:04:24You probably think it ends here where the fence is.
0:04:24 > 0:04:29Oh, no, it doesn't because look, you've got all that space over there!
0:04:34 > 0:04:38It's all a bit overgrown, but there's loads of potential out here.
0:04:38 > 0:04:44You could extend the kitchen into the old outside loo, spruce up the conservatory.
0:04:44 > 0:04:50You might even be able to squeeze in some off-street parking if you're really clever.
0:04:50 > 0:04:52But before I get carried away out here,
0:04:52 > 0:04:56there's more, um, SPACE to discover inside.
0:04:56 > 0:05:02Upstairs, there are two huge bedrooms, but only two, so a bit of a disappointment.
0:05:02 > 0:05:08You've got a massive bathroom here with a tiny little bath right in the middle of it.
0:05:08 > 0:05:11Originally, I don't think this was the bathroom.
0:05:11 > 0:05:16It would have been over there somewhere, probably where the outside toilet is now,
0:05:16 > 0:05:20but because this space is so big, you can move things around a little.
0:05:20 > 0:05:24I would put the bathroom here, a nice, big wall up here,
0:05:24 > 0:05:28put the entrance through here, so you can knock through.
0:05:28 > 0:05:34You don't need a window, so that could work perfectly, then I'd use this side of the room as a bedroom.
0:05:34 > 0:05:40You've got a big, sunny window there, so that means you've got three upstairs bedrooms.
0:05:40 > 0:05:44I think a third bedroom would be the making of this property,
0:05:44 > 0:05:50but if there's still not enough space for you here, how about an enormous basement?
0:05:56 > 0:06:02When you're looking at property, it's always the little extras that help clinch the deal,
0:06:02 > 0:06:06and in this case, well, look at the size of this cellar!
0:06:06 > 0:06:12You'd only need to tank it. It could possibly be a little bit damp, but it's a fantastic space.
0:06:12 > 0:06:17You could use this for so many things - a home cinema room, an office, extra storage.
0:06:17 > 0:06:22Once it's done, it will look great. It will certainly add value to the house.
0:06:22 > 0:06:28This is definitely something that would help clinch the deal for me if I were bidding for this.
0:06:29 > 0:06:32So, I love this place and its guide price
0:06:32 > 0:06:35of 135,000 to 140,000,
0:06:35 > 0:06:38but what does a local property expert make of it?
0:06:40 > 0:06:44The two main issues here are the two-bedroom and no parking.
0:06:44 > 0:06:46Parking is very hard down here.
0:06:46 > 0:06:48They've got a really big bathroom.
0:06:48 > 0:06:52If they could make a smaller bathroom and a third bedroom upstairs
0:06:52 > 0:06:55and do the off-road parking, it would make a fantastic home.
0:06:55 > 0:07:01Fair enough. But if you create that third bedroom, what kind of rental income might you achieve?
0:07:02 > 0:07:09If they put the third bedroom upstairs, I think they'd achieve £725 to £795 per calendar month.
0:07:11 > 0:07:14What about a resale valuation?
0:07:14 > 0:07:20If they made it into a three-bedroom, I think it'd achieve around £180,000 to £190,000.
0:07:20 > 0:07:25This is a lovely-looking house. There's no getting away from it.
0:07:25 > 0:07:27And it's got lovely views.
0:07:27 > 0:07:33But it needs lots of work, a bigger kitchen and you could definitely do with that third bedroom,
0:07:33 > 0:07:35but I really like it.
0:07:35 > 0:07:39Let's find out who felt the same way when we head to auction.
0:07:42 > 0:07:44Over the page then to lot number 30.
0:07:44 > 0:07:46Attractive detached house.
0:07:46 > 0:07:49135 to 140. Where do you want to start me on this?
0:07:49 > 0:07:53Start me at 130? £130,000 for a detached house?
0:07:53 > 0:07:57130 anywhere? 130, I'm on the way. 130.
0:07:57 > 0:08:00And 2? 132? 132, I have.
0:08:00 > 0:08:02And 4? 134?
0:08:02 > 0:08:04134. And 6?
0:08:04 > 0:08:07At £134,000 I've got... 136.
0:08:07 > 0:08:09And 8. 138.
0:08:09 > 0:08:12And 40. 140. At 140...
0:08:12 > 0:08:15And 2 now, it's against you? 142?
0:08:15 > 0:08:17At 142? It's with you at 140.
0:08:17 > 0:08:22At 142, I'm looking for. Are we all done at £140,000?
0:08:22 > 0:08:24142 anywhere? It's still worth this.
0:08:24 > 0:08:28A good property, good detached house at £140,000.
0:08:28 > 0:08:30I'm looking for 142.
0:08:30 > 0:08:33I'll sell it at 140 if you're not coming back again.
0:08:33 > 0:08:35It's against you at 140.
0:08:35 > 0:08:37142 anywhere?
0:08:37 > 0:08:42If you're all done then, for the first time at £140,000...
0:08:42 > 0:08:46If you're sure you're all done, second time at £140,000...
0:08:46 > 0:08:50Third and final time, if you're sure you're all done at £140,000...?
0:08:50 > 0:08:52GAVEL BANGS
0:08:52 > 0:08:59'That winning bid of £140,000 was placed by Doug, a retired pensions adviser.
0:08:59 > 0:09:03'He's bought the property with his good friend and sailing buddy Geoff,
0:09:03 > 0:09:05'a retired chartered building surveyor.'
0:09:06 > 0:09:09# We are sailing... #
0:09:11 > 0:09:16'Geoff and Doug have undertaken a couple of renovation projects together
0:09:16 > 0:09:21'which came about partly by chance and partly through Doug's persuasions.
0:09:21 > 0:09:27'The last project was no small beer either, turning an old maltings into 59 flats!
0:09:27 > 0:09:32'So what course have the sailing buddies charted to make this one ship-shape?'
0:09:33 > 0:09:36Congratulations. This is a handsome house.
0:09:36 > 0:09:41What did you like about it enough to want to buy this on auction day?
0:09:41 > 0:09:47It had so much going for it. There are so many things you can do above and beyond what we're going to do.
0:09:47 > 0:09:52It's a lovely family house. It's got a big garden. It's got potential, real potential.
0:09:52 > 0:09:56- And it has good investment potential as well.- Who was it that spotted it?
0:09:56 > 0:10:01- Geoff.- I did.- You spotted it. Did you have to talk Doug into this one?
0:10:01 > 0:10:05Well, yes and no. We've worked together for a long time,
0:10:05 > 0:10:10so he sort of listens to what I have to say, criticises and adds bits and argues.
0:10:10 > 0:10:13- That's a great partnership.- Quite.
0:10:13 > 0:10:20From what I told him, because he didn't see it before we bought it, he felt it was good as well.
0:10:20 > 0:10:22How did you guys meet?
0:10:22 > 0:10:28We've known each other since 1985. We joined the Medway Yacht Club about the same time.
0:10:28 > 0:10:31We had our own yachts to start with.
0:10:32 > 0:10:37And both Geoff's wife and my wife get along well, so it's just a long-standing relationship.
0:10:37 > 0:10:41Who's doing what here? How will you divide up the work?
0:10:42 > 0:10:44- Well...- I...- You answer that.
0:10:44 > 0:10:48Stop! OK, tell me how you're going to do it, Doug.
0:10:48 > 0:10:53I'm going to do very little except employ Geoff's skills to get everything organised.
0:10:53 > 0:10:59I essentially have organised the finance. Geoff is essentially doing everything else.
0:10:59 > 0:11:04- You both have your own sets of skills?- Yes, he writes cheques. - I have no skills at all.
0:11:04 > 0:11:06- You're the money man?- Yes.
0:11:08 > 0:11:12'Before retiring, Doug worked in company pension schemes
0:11:12 > 0:11:15'and he'll be looking after the pot on this one.
0:11:15 > 0:11:19'Geoff has recently retired from a career as a building surveyor,
0:11:19 > 0:11:22'working on large commercial properties.
0:11:22 > 0:11:26'Over the next four months, with Geoff at the helm project-managing,
0:11:26 > 0:11:29'they plan to hoist this place out of the doldrums.'
0:11:29 > 0:11:34There's some land at the side, a little part of the garden.
0:11:34 > 0:11:38We'll dig that out. That will create quite a large car park area.
0:11:38 > 0:11:44The application is in to Medway Council at the moment. We're waiting for them to say yes.
0:11:44 > 0:11:49We've got a cellar that we can convert into a media room, games room, whatever.
0:11:49 > 0:11:51You have two bonus areas in my opinion.
0:11:51 > 0:11:57You've got the lovely parking area that you can create, a nice, big basement downstairs.
0:11:57 > 0:12:02The big downside is you've only got two bedrooms upstairs. That was a bit of a surprise to me.
0:12:02 > 0:12:06- But that's a huge bathroom. - That's the situation now.
0:12:06 > 0:12:09What Geoff has in mind to do, in fact, what we ARE going to do,
0:12:09 > 0:12:14the large bathroom we'll convert into a bedroom and a bathroom,
0:12:14 > 0:12:18so it will become a three-bedroom property with a bathroom.
0:12:18 > 0:12:22'On top of that, there'll be a new kitchen, a revamped conservatory
0:12:22 > 0:12:25'and general updating throughout.
0:12:25 > 0:12:30'Geoff has already amassed three folders of paperwork on the build,
0:12:30 > 0:12:35'so how much is money man Doug going to allow his friend for the renovation?'
0:12:35 > 0:12:38We'll have to spend something in the order of £40,000.
0:12:38 > 0:12:43That's not bad. I was thinking you might have said a little bit more.
0:12:43 > 0:12:49- That's our budget.- Hold on a minute. You mentioned a media room to me. Is that included in the price?
0:12:49 > 0:12:54- Yeah, absolutely.- Wow!- I've got some good prices for tanking,
0:12:54 > 0:12:58plastering, floor, lights, new window.
0:12:58 > 0:13:03I've produced a whole load of packages. Each bit of work is a package.
0:13:03 > 0:13:05That's gone out to people to price,
0:13:05 > 0:13:12then my job is to sort out who I want doing the packages, bring it all together and make it happen.
0:13:12 > 0:13:17- Doug, this really is the man for the job.- Absolutely. - He is all over it. I love it.
0:13:17 > 0:13:22He spent his whole career in the construction industry as a successful building surveyor,
0:13:22 > 0:13:26- so we're very lucky to have his experience.- Absolutely.
0:13:26 > 0:13:31- Can I have a copy of that recording? - I've said it on the telly. What more do you want?
0:13:31 > 0:13:37- Guys, I cannot wait to see what you do here. Geoff, lovely to meet you. - And you.- Doug, thank you.
0:13:37 > 0:13:38What a team!
0:13:38 > 0:13:44Doug is the money man and Geoff will provide the expertise, packages and folders.
0:13:44 > 0:13:46Gosh, he's so thorough!
0:13:46 > 0:13:52It seems to me that all the pressure will mainly be on Geoff because he'll be project-managing.
0:13:52 > 0:13:55Will they get planning permission for the parking to the side
0:13:55 > 0:13:59and will Doug be pleased with his pal Geoff's work?
0:13:59 > 0:14:03You can find out how the chaps get on later in the programme.
0:14:08 > 0:14:13I'm a couple of miles south-west of Durham in the village of Meadowfield
0:14:13 > 0:14:15which has great transport links to the city,
0:14:15 > 0:14:20making it particularly attractive to first-time buyers and investors.
0:14:20 > 0:14:23This is the two-bedroom house I'm here to see.
0:14:23 > 0:14:30It has a tiny front garden, but that looks like new double-glazing. What's not to like?
0:14:30 > 0:14:33So you're on a bus route on a main road, so we quite like that.
0:14:33 > 0:14:36You've got an end of terrace, we like that,
0:14:36 > 0:14:39and a guide price of £39,950,
0:14:39 > 0:14:41so we like that!
0:14:41 > 0:14:43Looking good so far then.
0:14:46 > 0:14:51I'm not that keen when you come through a front door and there's a cupboard facing you.
0:14:51 > 0:14:57It gives you that wrong initial impression, but a decent-sized front living area on that side,
0:14:57 > 0:14:59then into the rear living room.
0:14:59 > 0:15:02A gas fire, I'd like to see that opened up,
0:15:02 > 0:15:05but then through here to a real...
0:15:05 > 0:15:08Oh, nearly bangs his head! ..a really nice surprise, a kitchen
0:15:08 > 0:15:12which looks like it's been pretty recently refurbished.
0:15:12 > 0:15:16It's clean, it works in the space, it's surprisingly big
0:15:16 > 0:15:20and it gets better because right towards the rear of the property...
0:15:20 > 0:15:24a bathroom which similarly looks like it's been recently refurbished.
0:15:24 > 0:15:28You've got panelling on the walls. The colours seem to work.
0:15:28 > 0:15:32I'm getting a really good feel about this place.
0:15:32 > 0:15:35This is a house that gets better and better.
0:15:35 > 0:15:41Downstairs, these two good-sized rooms, one each side of the front door, both obviously need updating,
0:15:41 > 0:15:45but sort out the wallpaper and carpets here and you're away.
0:15:46 > 0:15:49I'd want to look at the layout though.
0:15:49 > 0:15:54Those odd little stairs leading off the sitting room are the only access to the first floor.
0:15:54 > 0:15:59It might be too costly to re-locate them, but I'd definitely think about it.
0:15:59 > 0:16:05Often with a terraced house like this, your only bathroom is off the kitchen as it is here,
0:16:05 > 0:16:09but upstairs, this little house has a bit of a surprise.
0:16:11 > 0:16:15Well, the house certainly has some interesting period features,
0:16:15 > 0:16:19the period being, I think, the 1970s,
0:16:19 > 0:16:23especially when you come up here to the bathroom upstairs.
0:16:23 > 0:16:27As you can see, you've got wood panelling, you've got a pink suite
0:16:27 > 0:16:30and you've got this most extraordinary sunken bath.
0:16:30 > 0:16:33'What do you do in the bath?'
0:16:33 > 0:16:37Having two bathrooms is a real bonus in a property like this
0:16:37 > 0:16:41and even if this doesn't leave you feeling in the pink,
0:16:41 > 0:16:45the two decent-sized bedrooms certainly don't give me a sinking feeling.
0:16:49 > 0:16:53At the back, there's a little yard with a small extension
0:16:53 > 0:16:58which contains the downstairs bathroom and rear access to the property.
0:16:58 > 0:17:03All in all, I think this is a lot of house for not a lot of money.
0:17:03 > 0:17:06We asked a local estate agent for his opinion on this house
0:17:06 > 0:17:11which had a guide price of £39,950.
0:17:11 > 0:17:14It's a fairly standard layout
0:17:14 > 0:17:17with a couple of reception rooms, a kitchen, two bedrooms
0:17:17 > 0:17:20and interestingly, two bathrooms
0:17:20 > 0:17:23which is quite unusual in a terraced house of this nature.
0:17:23 > 0:17:27There is a bit of difficulty in finding first-time buyers.
0:17:27 > 0:17:30There are a lot of similar houses on the market currently,
0:17:30 > 0:17:34so it may be an investor who will rent the property out.
0:17:34 > 0:17:40But if you did find that buyer, what could this place sell for once updated?
0:17:40 > 0:17:43If the house were brought up to modern-day standards,
0:17:43 > 0:17:48I would anticipate it to be somewhere in the order of £80,000 to £90,000.
0:17:48 > 0:17:52And if it were to be let, what would a refurbished house rent out for?
0:17:52 > 0:17:59In terms of rental value, I would think it would bring somewhere in the order of £400 per calendar month.
0:17:59 > 0:18:04Well, a few issues to sort out, but intrinsically, this is a good house
0:18:04 > 0:18:10which you could rent out or live in pretty much as it is and for a great price too.
0:18:10 > 0:18:13Let's see who bought it when it went under the hammer.
0:18:13 > 0:18:16OK, we're up to lot number 81,
0:18:16 > 0:18:20a two-storey, end terrace house with central heating and double glazing.
0:18:20 > 0:18:25We've got this in with a price guide of 39,950. Somebody must for £36,000?
0:18:25 > 0:18:29Thank you very much, with the glasses at the back at 36,000.
0:18:29 > 0:18:3137? 37, the lady in the third row.
0:18:31 > 0:18:3438? 38 bid. 39? 39 bid.
0:18:34 > 0:18:37At £39,000. I'll take 500 if it helps.
0:18:37 > 0:18:41I'm going at 39. 39 and a half? 39 and a half bid.
0:18:41 > 0:18:4340? 40 bid.
0:18:43 > 0:18:47I'm selling at £40,000. I'm selling once at 40,000...
0:18:47 > 0:18:51I'm selling for the second time at £40,000...
0:18:51 > 0:18:57- Sold.- 'With that successful bid of £40,000, only £50 over the guide price,
0:18:57 > 0:19:00'the new owners are husband and wife team Ann and Paul.'
0:19:00 > 0:19:05# Well, I'm so tired of cryin', but I'm out on the road again
0:19:05 > 0:19:07# I'm on the road again... #
0:19:07 > 0:19:13'Paul is a technical analyst for a company which specialises in road surfaces
0:19:13 > 0:19:17'while Ann works as an administrator in a bank.'
0:19:17 > 0:19:21- Ann, Paul, great to meet you both. - Hello.- Congratulations.- Thank you.
0:19:21 > 0:19:24Tell me why you wanted to buy this place.
0:19:24 > 0:19:28As an investment, really. We're hoping to do it up and rent it out.
0:19:28 > 0:19:33- Right.- We've got two children that we want to set on the right footing, really.- Great.
0:19:33 > 0:19:36Hopefully, it'll be something for the future for them.
0:19:36 > 0:19:41- Great. What are their names? - Maria and Rob.- How old are they? - 20 and 18.
0:19:41 > 0:19:44Right. What do they think about this whole thing?
0:19:44 > 0:19:50Rob's quite keen. Maria's away at university, but Rob's at home and is keen to get his hands dirty,
0:19:50 > 0:19:53- so I'm going to hold him to it. - Right.- We've got a lot to do.
0:19:53 > 0:19:57Why now? Why this particular moment to do it?
0:19:57 > 0:20:01For about 20 years we've talked about buying a property,
0:20:01 > 0:20:05then a few months ago, my wife was off with a bad back for two weeks
0:20:05 > 0:20:10and she did basically nothing but watch Homes Under The Hammer.
0:20:10 > 0:20:11Oh, good.
0:20:11 > 0:20:15Basically, we decided... The mortgage was coming to an end.
0:20:15 > 0:20:18We'd never had the money, so we weren't going to miss it.
0:20:18 > 0:20:23We needed to do something with it, so that's what we've decided to do.
0:20:23 > 0:20:26So having made the leap, how does it feel?
0:20:26 > 0:20:28A bit scary.
0:20:28 > 0:20:31I'll tell you in a few months' time when it's all done.
0:20:31 > 0:20:37- So why this place?- It's really local to where we live. I pass it every night on my way home from work.
0:20:37 > 0:20:40And the price was right.
0:20:40 > 0:20:42The price was right.
0:20:42 > 0:20:47The property itself, there's nothing that I'd call major that needs doing to the house.
0:20:47 > 0:20:53Because it's our first attempt, we didn't want to get into the realms of having to pull walls down.
0:20:53 > 0:20:55- Yeah.- A lot of it is cosmetic.
0:20:55 > 0:21:00Have both of you got experience of doing your own places?
0:21:00 > 0:21:04Every house we've bought, I've fitted our own kitchens, own bathrooms.
0:21:04 > 0:21:12The only thing, obviously, we can't really do is the gas, electrics. It'll be a learning curve.
0:21:12 > 0:21:16'It sounds like Ann and Paul have been studying hard already.
0:21:16 > 0:21:21'With skills like kitchen and, more importantly, bathroom fitting under their belts,
0:21:21 > 0:21:27'they could renovate this house for very little cash, but that doesn't mean they'll do it on the cheap.'
0:21:27 > 0:21:30We intend doing as good a job as we can
0:21:30 > 0:21:34because we don't like doing anything that we wouldn't want to move into,
0:21:34 > 0:21:38- so we don't want any hidden... - We don't want to cut any corners.
0:21:38 > 0:21:43Do temper that with not overspending. No gold taps and stuff like that.
0:21:43 > 0:21:47That's my department, not overspending. He gets carried away.
0:21:47 > 0:21:49Really? Is that right?
0:21:49 > 0:21:52- Just say "yes".- Basically, yeah.
0:21:52 > 0:21:56'It's handy to have a financial whizz kid like Ann on your team
0:21:56 > 0:22:02'if you want to make your money go further and resist the temptation to...SPLASH out.
0:22:02 > 0:22:05'So what's the plan for this end terrace?'
0:22:05 > 0:22:11We'll change the upstairs bathroom. The downstairs bathroom we'll change into a utility room.
0:22:11 > 0:22:13I'm looking more at the structure side of it.
0:22:13 > 0:22:18We've had an initial survey done and we know we need damp courses put in,
0:22:18 > 0:22:24so I'll be looking more at the structural point and Ann will be looking more at the decor side.
0:22:24 > 0:22:29- Pretty things. - I'll be doing the big hammer work and Ann will have the paintbrushes.
0:22:29 > 0:22:31Any walls to come out or anything like that?
0:22:31 > 0:22:33No walls as such.
0:22:33 > 0:22:37The only structural thing we'll take out is the main fireplace.
0:22:37 > 0:22:42It's a bit dated. It was well built, but it's out of date.
0:22:42 > 0:22:46We don't know what will happen when we take the wallpaper off the walls.
0:22:46 > 0:22:50We've planned that, as a minimum, they're going to need re-skimming.
0:22:50 > 0:22:55- It may be a bit more once we get there.- You never know.- We don't know.
0:22:55 > 0:23:00- What kind of budget have you got? - 10,000 to 12,000. There is more scope if we need it.
0:23:00 > 0:23:05But obviously, we've set it at between 10 and 12 to stop us overspending.
0:23:05 > 0:23:08- Who's got their finger on the purse strings?- Me.
0:23:08 > 0:23:11Definitely me.
0:23:11 > 0:23:15'Time will tell if they need to prise open Ann's purse a little bit wider
0:23:15 > 0:23:19'when they strip those walls and lift those carpets.
0:23:19 > 0:23:22'Are they planning to sell or let it?'
0:23:22 > 0:23:27Clean it up just sort of for the rental market, really. Just have it quite neutral.
0:23:27 > 0:23:31So you have got rental in mind to a degree?
0:23:31 > 0:23:35- Yeah.- Yeah, that's where we are heading at the moment.
0:23:36 > 0:23:39And then time will tell.
0:23:39 > 0:23:45A lot of it will be judged as well by what our children want to do in the end.
0:23:45 > 0:23:51- Because ultimately, the reason we're doing this at this time in our life is for the children.- Right.
0:23:51 > 0:23:56We know they're going to have a hard time getting on the property ladder,
0:23:56 > 0:24:00so it's whatever realistically will be better for them in the long run.
0:24:00 > 0:24:05- Are you going to involve them in the process?- Yes. If they're going to benefit, they'll have to work.
0:24:05 > 0:24:12- They're going to get their hands dirty too?- Definitely.- Great. It'll turn into a nice family project.
0:24:12 > 0:24:17It's important for them to learn basic skills before they get a home of their own, so it's ideal.
0:24:17 > 0:24:21Fantastic. And no pressure particularly?
0:24:21 > 0:24:27- Yeah. I'm not letting them play with my house!- They can knock a wall down. It doesn't really matter(!)
0:24:27 > 0:24:32There's no major hurry for us to have to rent it out or sell it straight away.
0:24:32 > 0:24:35We're fortunate in that position,
0:24:35 > 0:24:39so it means if something overruns or we get held back a little bit,
0:24:39 > 0:24:42- it's not a major concern.- Great.
0:24:42 > 0:24:46I'm delighted we played some part in chivvying you on in the first place.
0:24:46 > 0:24:51- I really look forward to seeing how you get on. Congratulations. - Thank you.- Thank you.
0:24:51 > 0:24:55Well, it's lovely that Ann and Paul are so enthusiastic
0:24:55 > 0:24:59about their first venture into the property investment world.
0:24:59 > 0:25:02I'm delighted that we played some part in that.
0:25:02 > 0:25:08I'm concerned they will overspend because their enthusiasm might get the better of them. Hopefully not.
0:25:08 > 0:25:11Let's find out how they get on later in the show.
0:25:12 > 0:25:17'Coming up, this Derbyshire mid-terrace doesn't quite step up to the mark.'
0:25:17 > 0:25:21This is a patio door. However, a bit of a design flaw!
0:25:22 > 0:25:29'In Durham, Ann and Paul's renovation of this two-bed end terrace was messier than expected.'
0:25:29 > 0:25:32I've never seen as much dust and dirt in my life.
0:25:33 > 0:25:37'But first, Doug's very happy with the finished article.'
0:25:37 > 0:25:42The living area downstairs is absolutely excellent, particularly for a family.
0:25:47 > 0:25:51Back now to Chatham in Kent and this two-bed, detached house
0:25:51 > 0:25:56which good friends Geoff and Doug bought at auction for £140,000.
0:25:56 > 0:25:58Doug put up the money
0:25:58 > 0:26:04and Geoff was going to bring 30 years of experience as a building surveyor to the project.
0:26:05 > 0:26:10I've produced a whole load of packages. Each bit of work is a package.
0:26:10 > 0:26:12That's gone out to people to price,
0:26:12 > 0:26:19then my job is to sort out who I want doing the packages, bring it all together and make it happen.
0:26:19 > 0:26:24- Doug, this really is the man for the job.- Absolutely. - He is all over it. I love it.
0:26:24 > 0:26:29He spent his whole career in the construction industry as a successful building surveyor,
0:26:29 > 0:26:32- so we're very lucky to have his experience.- Absolutely.
0:26:32 > 0:26:37- Can I have a copy of that recording? - I said it on the telly. What more do you want?
0:26:37 > 0:26:40# Sail away with me
0:26:40 > 0:26:43# What will be, will be... #
0:26:44 > 0:26:50Sailing buddies Geoff and Doug were full of great ideas to turn this property around,
0:26:50 > 0:26:57but ten months after our first visit, Doug is back with some very sad news.
0:26:58 > 0:27:01Well, I'm afraid there's been some very sad circumstances.
0:27:01 > 0:27:06This was a project I was doing with a very good friend of mine, Geoff.
0:27:06 > 0:27:09He was the brains. I was providing the finance.
0:27:09 > 0:27:13He had everything set to go, went away on a skiing holiday for a week,
0:27:13 > 0:27:20and very sadly and unfortunately, he had a massive heart attack on the ski slopes and passed away.
0:27:20 > 0:27:24All our thoughts go out to Geoff's family.
0:27:24 > 0:27:30Doug had to think long and hard about whether to continue with the project without his friend.
0:27:30 > 0:27:33It was a difficult decision, but he did,
0:27:33 > 0:27:39and what a fitting tribute to Geoff's skills this house has turned out to be!
0:28:14 > 0:28:18Well, I for one love the transformation here.
0:28:18 > 0:28:22Doug hasn't done all of this single-handedly.
0:28:22 > 0:28:25Builder James, a friend of both Doug and Geoff,
0:28:25 > 0:28:30stepped in and took on the project management work that Geoff had started.
0:28:32 > 0:28:37I'd known Geoff since I was 16 so I knew him very well.
0:28:37 > 0:28:39And I knew Doug through Geoff.
0:28:39 > 0:28:43So I did feel it was an important thing to do
0:28:43 > 0:28:47and an interesting thing to be involved with,
0:28:47 > 0:28:55to see this run-down property given a new lease of life for hopefully many more years.
0:28:56 > 0:29:02Doug spends much of the year abroad so James has been on site getting through a mountain of work.
0:29:02 > 0:29:09They've cleverly divided up the old bathroom and created a third bedroom with a new window.
0:29:09 > 0:29:14They've made space for off-street parking, the conservatory's redone in uPVC,
0:29:14 > 0:29:19the basement can now be a fantastic media room or home office.
0:29:19 > 0:29:25The old kitchen has become a utility room and knocking the dining room and second sitting room together
0:29:25 > 0:29:27works really well.
0:29:27 > 0:29:35It's a wonderful piece of space. You've got the significant kitchen, a very nice living area with it
0:29:35 > 0:29:42and when you add that to the other downstairs living room, the living area downstairs is excellent,
0:29:42 > 0:29:45particularly for a family.
0:29:45 > 0:29:51Now on many levels this has turned out to be a much bigger job than Doug and Geoff envisaged.
0:29:51 > 0:29:57They had thought they could salvage the heating system, but James ended up having to replace the lot.
0:29:57 > 0:30:03What effect has that and the other extra work had on the planned £40,000 budget?
0:30:03 > 0:30:10We spent just about £75,000 on top of what we paid for it.
0:30:12 > 0:30:17That £75,000 spend brings the total outlay here to £215,000.
0:30:17 > 0:30:24We asked along two local property experts to get their take on the work done.
0:30:24 > 0:30:27I think it's been done to a really high standard.
0:30:27 > 0:30:32It's lovely inside. It's very neutral. A blank canvas for someone.
0:30:32 > 0:30:38First impressions, it's very nice. It's clean, tidy, it's crisp. It's very nice, yeah.
0:30:38 > 0:30:42What do they think the property could fetch if rented out?
0:30:44 > 0:30:50For rental purposes, I would anticipate getting something in the region of £950 per calendar month.
0:30:50 > 0:30:55You'd rent this property out between £950 and £975 per calendar month.
0:30:55 > 0:31:00Those rental valuations would mean a yield of just over 5%,
0:31:00 > 0:31:05which is OK, but what about Doug's preferred option, the resale market?
0:31:07 > 0:31:11If I had to put this property up for sale, I would expect it to achieve
0:31:11 > 0:31:16something in the region of £220,000-£225,000.
0:31:16 > 0:31:19I would sell this for in excess of £225,000.
0:31:19 > 0:31:25I'd be disappointed if we can't achieve 230. I'm probably prepared to stick out for that,
0:31:25 > 0:31:29even to the extent of renting out, rather than take less than that.
0:31:31 > 0:31:39A sale at £230,000 would mean a profit before tax and expenses of £15,000,
0:31:39 > 0:31:45but does Doug think his good friend Geoff would be happy with the transformation here?
0:31:45 > 0:31:49This entire design was Geoff
0:31:49 > 0:31:53and I'm sure he'd be absolutely delighted with what he's seeing.
0:31:53 > 0:31:59It's what he drew up, it's what he expected and we've achieved that.
0:32:04 > 0:32:09Today I'm looking for a bit of northern soul in the former mill town of Heanor,
0:32:09 > 0:32:13well placed to commute to Derby or Nottingham.
0:32:13 > 0:32:18Well, the property I'm here to see is on this really busy main road.
0:32:18 > 0:32:23It means you have good transport links, but noise could be an issue.
0:32:23 > 0:32:27This is the property I'm here to see. A traditional terrace.
0:32:27 > 0:32:32Two bedrooms and a guide price of £39,000 plus. In we go.
0:32:35 > 0:32:40Well, at least you've got double glazing in the door and the window,
0:32:40 > 0:32:46but I would be tempted to put triple glazing in to keep noise from that road down,
0:32:46 > 0:32:50especially for the bedroom that's on this side of the property.
0:32:50 > 0:32:53At night, that would be a problem.
0:32:53 > 0:32:56Very traditional layout. Through to the living room.
0:32:56 > 0:32:59Em, the...
0:32:59 > 0:33:06The decoration leaves a little bit to be desired, but it's only a few tins of paint, isn't it?
0:33:06 > 0:33:11Stairs up to your bedrooms there. And through into your rear living room area.
0:33:11 > 0:33:16You've got to love the people who put that on the ceiling.
0:33:16 > 0:33:21Fantastic for a wedding cake. But I can forgive that. This I cannot.
0:33:21 > 0:33:26This is a patio door. However, bit of a design flaw.
0:33:26 > 0:33:32You're not supposed to have to do that. What were the people thinking?!
0:33:34 > 0:33:37Steps are definitely in order here.
0:33:40 > 0:33:46Off the sitting room, you head through to the kitchen, the smallest room in the house.
0:33:46 > 0:33:50Now you might want to think about re-jigging things down here
0:33:50 > 0:33:54and making a larger kitchen, but that could get expensive.
0:33:54 > 0:34:00Upstairs, there are two well-proportioned bedrooms and - ta-da! - the bathroom.
0:34:00 > 0:34:06Now, traditionally, the bathroom and loo in this kind of property would have been downstairs,
0:34:06 > 0:34:11but someone's done the modifications and brought it upstairs. I really like it.
0:34:11 > 0:34:17A little corridor between the two bedrooms returns from the stairs, creating a nice-sized bathroom.
0:34:17 > 0:34:24You've lost a bit of space in the front bedroom there, but that's not much of a detriment
0:34:24 > 0:34:28compared with what you've got here. As a layout upstairs, it works well.
0:34:30 > 0:34:35It's all looking quite promising. It does need a bit of TLC,
0:34:35 > 0:34:41but there's a decent amount of internal space here and it's laid out sensibly. So far, so good,
0:34:41 > 0:34:43but what about the outside space?
0:34:45 > 0:34:49At the rear of the property, it is a bit of a hotch potch.
0:34:49 > 0:34:54You've got two little extensions, which form the kitchen area and a bit at the end.
0:34:54 > 0:34:59What you have got here, which is extraordinary, is a huge garden!
0:34:59 > 0:35:05If you did want to do some fairly impressive extensions, you'd still have a lovely family garden.
0:35:05 > 0:35:09It's almost too big in some ways.
0:35:10 > 0:35:16There's definitely scope to turn this into a lovely garden.
0:35:16 > 0:35:21I'd think hard about doing something fabulous with a new kitchen extension if you've got the budget.
0:35:21 > 0:35:26The alleyway that runs under part of the property is shared with the neighbours,
0:35:26 > 0:35:29giving them access to their garden.
0:35:29 > 0:35:33It's what's called a flying freehold.
0:35:33 > 0:35:35# One day I'll fly away... #
0:35:35 > 0:35:42You should get your solicitor to check put the paperwork to make sure that it's clear who's liable
0:35:42 > 0:35:48if anything needs doing, but a flying freehold is not that uncommon or a dealbreaker.
0:35:48 > 0:35:51# One day I'll fly away... #
0:35:51 > 0:35:56So a two-bed terrace on a busy road for a guide price of £39,000.
0:35:56 > 0:36:01What does a local property expert make of it?
0:36:03 > 0:36:10The positives are it's a good size, well located for the town centre and it has a nice-size garden.
0:36:10 > 0:36:15The kitchen needs to be reconfigured to make a large dining/kitchen.
0:36:15 > 0:36:20The bathroom just needs refitting and general refurbishment throughout.
0:36:23 > 0:36:27A bit to do then, but once it has been brought up to scratch,
0:36:27 > 0:36:30what does he think it might fetch if sold?
0:36:31 > 0:36:34If renovated to a good standard,
0:36:34 > 0:36:37this could achieve £65,000-£70,000.
0:36:38 > 0:36:41What about the rental market?
0:36:41 > 0:36:47In the rental market, I'd expect this to achieve £400 per calendar month.
0:36:47 > 0:36:51It's a bit of a house of two halves, this one.
0:36:51 > 0:36:56The front, with its noise and traffic, and the back with that incredible garden.
0:36:56 > 0:37:03The house itself, not too much that scares me. It could be a potentially good one to go for.
0:37:03 > 0:37:06Let's see who agreed when it went under the hammer.
0:37:06 > 0:37:10Lot 32. A good little investment property.
0:37:10 > 0:37:13Start me on this at 40,000.
0:37:13 > 0:37:1638? Under the guide price.
0:37:16 > 0:37:1838 for a two-bedroom terrace.
0:37:18 > 0:37:2138, thank you. On the far left.
0:37:21 > 0:37:25£38,000. At 38,000. 39, somewhere else?
0:37:25 > 0:37:3039. At 39,000. 40 is bid. At 40. 41?
0:37:30 > 0:37:34£40,000 I've got. 41?
0:37:34 > 0:37:3641. At 41.
0:37:36 > 0:37:3842?
0:37:38 > 0:37:40£41,000. All done?
0:37:40 > 0:37:42At 41... 42.
0:37:42 > 0:37:4642,000. Out standing against the wall.
0:37:46 > 0:37:50At £42,000. The bid's in the centre.
0:37:50 > 0:37:5342 and a half. 43.
0:37:53 > 0:37:56At 43. And a half again?
0:37:56 > 0:38:01At 43,000, we're going to sell. £43,000 once.
0:38:01 > 0:38:03Twice. Third opportunity.
0:38:03 > 0:38:07It's sold at 43. 150, thank you.
0:38:08 > 0:38:13It was local businessman Mark who snapped up this property for £43,000.
0:38:13 > 0:38:19He has a sizeable property portfolio which he runs alongside his business restoring properties
0:38:19 > 0:38:25damaged by flood and fire. I met Mark back at the house with his project manager, Paul.
0:38:27 > 0:38:32Mark, Paul, good to see you both. Tell me why you wanted to buy this.
0:38:32 > 0:38:38Just basically to add to the portfolio of houses I've got to rent out, basically.
0:38:38 > 0:38:44- When did you start building that portfolio?- About six years ago, but really in the last year.
0:38:44 > 0:38:48Why have you been driving it quite hard in the last year?
0:38:48 > 0:38:53Em, really just I've gotten older, I've got a daughter come along and my wife
0:38:53 > 0:38:59- and we're just trying to secure something for her future. - Is this your full-time job?
0:38:59 > 0:39:04Not full-time. It is becoming quite full-time, if that makes sense.
0:39:04 > 0:39:08But we have got another business as well as this one.
0:39:08 > 0:39:12- What does that do?- Insurance claims. Repairs, basically.- Right.
0:39:12 > 0:39:19- It falls hand in hand with what we do here.- So you have a team of people. That's where Paul comes in.
0:39:19 > 0:39:25- Paul, what's your role?- Basically, make sure everything falls into place, the tradesmen come on time.
0:39:25 > 0:39:30Get everything up and running, keep to schedule, get it all done.
0:39:30 > 0:39:36Mark viewed the property about eight months before the auction
0:39:36 > 0:39:40when it was on the open market, but decided against it at that stage.
0:39:41 > 0:39:47When he saw it in the catalogue at the auction, he decided there and then to go for it.
0:39:47 > 0:39:54- So what about things like the legal pack?- Basically, I've got my solicitor at that point in time
0:39:54 > 0:40:01- video conferencing on my computer. - At that point in time?- While I was physically bidding in the auction.
0:40:01 > 0:40:07Your solicitor is on a video conferencing link while you bid?!
0:40:07 > 0:40:13- Correct, yeah.- Wow! And you're having a forwards and backwards conversation?- Basically.
0:40:13 > 0:40:19Just checking the freehold's in place, other bits and bobs, making sure it all stacks up.
0:40:19 > 0:40:25- If she'd typed in, "Stop bidding!" - We would have stopped! Yeah.
0:40:25 > 0:40:30That all sounds a bit too seat of the pants for my liking,
0:40:30 > 0:40:38but they might just have got away with it. So what exactly is on Paul's schedule of works?
0:40:39 > 0:40:43Basically get everything back to plaster,
0:40:43 > 0:40:45plaster the Artex and everything.
0:40:45 > 0:40:50And then straightforward redecoration, knock a few walls about.
0:40:50 > 0:40:56- Right! Any particular walls? - The one upstairs in the bathroom. - Oh, right?
0:40:56 > 0:41:01- What are you going to do? - We'll make the property a three-bed.
0:41:01 > 0:41:06- A smaller bathroom, two smaller beds.- Oh, right.- Yep.
0:41:06 > 0:41:10- OK. And then redo the bathroom. - Yeah, yeah.
0:41:10 > 0:41:15- And the kitchen?- Er, well... We haven't had a look at that yet.
0:41:15 > 0:41:20- Right. Are you given carte blanche to do whatever you need?- Em...
0:41:20 > 0:41:22Sort of.
0:41:22 > 0:41:26- Within reason, within the budget. - Right, OK.
0:41:26 > 0:41:32- So what budget have you given Paul? - I'm kind of thinking somewhere along the lines of £15,000
0:41:32 > 0:41:37- would be adequate for something like this.- Yeah.- We'll try to keep a bit under if we can,
0:41:37 > 0:41:41but what's got to be done has got to be done at the end of the day.
0:41:41 > 0:41:47I quite like the large bathroom and the fact you've got two good-sized bedrooms.
0:41:47 > 0:41:53- Why decide to go down the three-bedroom route? Purely for rental return?- Absolutely.
0:41:53 > 0:41:57Through previous experience, we have a selection of two-beds.
0:41:57 > 0:42:02We do need a few more three-beds in our portfolio, if that makes sense.
0:42:02 > 0:42:08It's just basically down to that, just down to what we require at this moment in time.
0:42:08 > 0:42:11What difference does it make a month?
0:42:11 > 0:42:14- £40-£50, something like that. - Right.
0:42:14 > 0:42:19- There's a lot more demand for three-bed than two in the local area.- Right.
0:42:21 > 0:42:24They really do seem to have done their homework.
0:42:24 > 0:42:32£15,000 is a healthy budget, but there's one more part that they have to tackle - the jungle out the back.
0:42:32 > 0:42:36We'll get it all strimmed back and take it from there.
0:42:36 > 0:42:41- It's hard to see what's underneath. - There's a good size out there.
0:42:41 > 0:42:46- Yeah.- And I like the fact you've got the patio door out there.
0:42:46 > 0:42:50It's quite an unusual feature. Not quite patio doors, but kind of!
0:42:50 > 0:42:57- Yeah.- Patio doors, but the wrong height! It needs to be a bit lower.- Yeah.
0:42:57 > 0:43:01And then the issue of the little alleyway at the side
0:43:01 > 0:43:07or whatever you want to call it. Your property goes over it. What have you found out about that?
0:43:07 > 0:43:13Basically, just a flying freehold according to the solicitor. Doesn't really concern us.
0:43:13 > 0:43:19- We'll insure against it and we'll just let it be. - Great. What's the timescale?
0:43:19 > 0:43:25- Er, probably looking at 4-6 week, hopefully, to get it all completed. - With a team of how many people?
0:43:25 > 0:43:30- Probably 6, 7 of us.- Right. So you'll get stuck in.- Yeah.- Good.
0:43:30 > 0:43:35- Congratulations.- Thank you.- Good luck. I look forward to seeing it. - Thank you very much.
0:43:35 > 0:43:40I'm sure Mark and Paul will make an efficient job of sorting this place out,
0:43:40 > 0:43:46although I'm a little disappointed about losing those big rooms upstairs, although I can see why.
0:43:46 > 0:43:52However, the idea of being in communication with your solicitor about the legal pack
0:43:52 > 0:43:56while you are in the process of bidding, that's a new one on me
0:43:56 > 0:44:00and is an extraordinary risky thing to do. Do not try that at home.
0:44:00 > 0:44:05You can find out how they get on later in the show.
0:44:09 > 0:44:14It's been a while since we saw those properties. Have the new owners been busy bees?
0:44:14 > 0:44:18Or have they been stung? Let's return and find out.
0:44:18 > 0:44:25Back now to Durham and this two-bed end terrace which appeared to be caught in something of a time warp.
0:44:27 > 0:44:31# It was acceptable in the Eighties... #
0:44:34 > 0:44:39Complete with sunken whirlpool bath, this floated Ann and Paul's boat,
0:44:39 > 0:44:42so they snapped it up at auction for £40,000.
0:44:42 > 0:44:48This was going to be their first step towards building a property portfolio as an investment.
0:44:48 > 0:44:52And they weren't about to cut any corners, either.
0:44:52 > 0:44:56We intend doing as good a job as we can. At the end of the day,
0:44:56 > 0:45:01- we don't like doing anything that we wouldn't move into.- Yeah.
0:45:01 > 0:45:04So we don't want anything hidden from anybody.
0:45:04 > 0:45:09Do temper that with not overspending. No gold taps and stuff like that.
0:45:09 > 0:45:14That's my department. He gets carried away!
0:45:14 > 0:45:20Ann's aim was to keep to a budget of £10,000-£12,000 and a three-month timescale.
0:45:20 > 0:45:24Six months after our first visit, we're back...
0:45:24 > 0:45:28to see if the end terrace now has a slightly more contemporary feel.
0:45:30 > 0:45:32# Gangnam style... #
0:45:47 > 0:45:51That is pretty much bang up to date if you ask me.
0:45:51 > 0:45:57Ann and Paul have quite sensibly left the kitchen and downstairs bathroom as they were.
0:45:57 > 0:46:03They decided against putting in a utility room, though the rest of the house is very much on trend.
0:46:04 > 0:46:09But this hasn't quite been the simple cosmetic job they thought.
0:46:09 > 0:46:13Sorting out the damp-proof course turned out to be an enormous job.
0:46:15 > 0:46:20What we had to do was take the plaster off to 1.2 metres up.
0:46:20 > 0:46:27So you can imagine it was like a bomb had dropped in here. I've never seen as much dust and dirt.
0:46:27 > 0:46:33All the plaster was taken off all the way through the house and we injected a damp course.
0:46:33 > 0:46:38Then the walls are replastered. It was a lot bigger job than we thought.
0:46:38 > 0:46:46On top of that, they had the whole gable end repointed and sorted out a slight bow in the wall
0:46:46 > 0:46:51at the same time. With all the structural work done,
0:46:51 > 0:46:55they could deal with the inside. Top priority - that bathroom.
0:47:00 > 0:47:05Well, the sunken Jacuzzi bath we decided to change.
0:47:05 > 0:47:10It was a little bit of a challenge getting it out of the building. It was six foot round.
0:47:10 > 0:47:15There's no doors that big, so we had to cut it into three to get it out.
0:47:15 > 0:47:22We did consider just putting a bath in, but we worked out that we could get bath and shower.
0:47:22 > 0:47:26This has all been done by Paul. He's worked really, really hard
0:47:26 > 0:47:32and done it all himself, so I think it's a really, really good achievement.
0:47:35 > 0:47:40Well said, Ann. While Paul has turned his hand to almost every aspect of the renovation,
0:47:40 > 0:47:46the couple have been sure to get the electrics and gas signed off by certified installers.
0:47:46 > 0:47:50That was just as well when it came to this gas fire.
0:47:50 > 0:47:55We got a heating engineer in and within about 30 seconds he condemned it.
0:47:55 > 0:48:01Unfortunately, what had happened was the back boiler at some point had been changed.
0:48:01 > 0:48:04And the flue didn't meet up with the boiler.
0:48:04 > 0:48:10So all the fumes that were coming out of the boiler, some was going up the chimney,
0:48:10 > 0:48:14but some was going up here and venting into the second bedroom.
0:48:14 > 0:48:17We were so glad we got it checked.
0:48:17 > 0:48:25It was one of those things we'd considered leaving, but if we had it could have been disastrous.
0:48:26 > 0:48:34It really goes to show that you can't take any chances with gas or electricity when renovating.
0:48:34 > 0:48:40Delays at the start and the extra structural work doubled their timescale to six months,
0:48:40 > 0:48:43but what about their £10,000-£12,000 budget?
0:48:44 > 0:48:49We did go over budget. We're near enough £15,000,
0:48:49 > 0:48:53which is £3,000 over what we'd originally planned.
0:48:53 > 0:49:00Despite all the unforeseen problems, Ann's kept a pretty tight grip on the purse strings.
0:49:00 > 0:49:06That £15,000 spend brings the total outlay here to £55,000.
0:49:06 > 0:49:08We asked two local property experts
0:49:08 > 0:49:12to give us their thoughts on the couple's efforts.
0:49:12 > 0:49:16The property's been considerably refurbished since my last visit.
0:49:16 > 0:49:20The property's been replastered throughout and redecorated,
0:49:20 > 0:49:26along with some damp proofing work and repointing of the gable wall.
0:49:26 > 0:49:30I think the levels of work done are just right for the property
0:49:30 > 0:49:32and it presents well throughout.
0:49:32 > 0:49:37What could this property fetch on the rental market?
0:49:37 > 0:49:43I would recommend an asking price of £425 per calendar month.
0:49:43 > 0:49:49I would be suggesting a figure of somewhere in the order of £425-£450 per calendar month.
0:49:50 > 0:49:56Those rental valuations would give a yield of 9-10%, which is very good indeed.
0:49:56 > 0:50:02But Ann and Paul have decided to sell the end terrace on and buy another property,
0:50:02 > 0:50:04so what about resale values?
0:50:04 > 0:50:10I would bring this property to the market at £69,950.
0:50:10 > 0:50:16I would be suggesting an asking price of somewhere in the order of £70,000-£75,000 for the property.
0:50:16 > 0:50:22Those valuations would see Ann and Paul making a profit, before tax and expenses,
0:50:22 > 0:50:25of around £15,000-£20,000.
0:50:26 > 0:50:33Paul had to dash off to work, so we asked Ann what the future held. Another renovation project?
0:50:34 > 0:50:39The lessons we've learned need to be put to good use for the next one,
0:50:39 > 0:50:43so I'll definitely consider another one.
0:50:49 > 0:50:53Back now to Heanor in Derbyshire and this two-bed mid-terrace,
0:50:53 > 0:50:56which Mark bought at auction for £43,000.
0:50:56 > 0:51:03He has a portfolio of rental properties locally, on top of his day job doing insurance repairs.
0:51:04 > 0:51:10Mark gave his project manager Paul just 4-6 weeks to sort the place out,
0:51:10 > 0:51:16but with a £15,000 budget this was going to be more than just a little tidy-up.
0:51:17 > 0:51:20So, Paul, what are you going to do?
0:51:20 > 0:51:22We'll make the property a three-bed.
0:51:22 > 0:51:26- A smaller bathroom, two smaller beds.- Oh.
0:51:26 > 0:51:28Right.
0:51:28 > 0:51:33I wasn't convinced a third bedroom was strictly necessary,
0:51:33 > 0:51:36but Mark thought a three-bed would suit his portfolio better.
0:51:36 > 0:51:4212 weeks after our first visit we're back to see how Mark and Paul got on.
0:51:44 > 0:51:47MUSIC: "Love Plus One" by Haircut 100
0:52:06 > 0:52:10Well, the job's a good 'un. Not only have they created a third bedroom,
0:52:10 > 0:52:15but the whole place is shining like a new pin.
0:52:16 > 0:52:22We had the house totally replastered from top to bottom. Every single surface was replastered in the end.
0:52:22 > 0:52:27The kitchen's brand new, bathroom. Generally, everything you see is brand new.
0:52:27 > 0:52:33It just made more sense to go right the way through it, rather than patch up existing workmanship.
0:52:33 > 0:52:38They've worked within the confines of the existing layout downstairs.
0:52:38 > 0:52:44They even left the funny patio doors as they were, but it's all looking so much tidier.
0:52:44 > 0:52:51The garden does still need finishing off, but it's upstairs where things have really changed.
0:52:51 > 0:52:55The biggest thing we did was create three bedrooms out of the two.
0:52:55 > 0:52:59One of the biggest problems was taking out the brick wall.
0:52:59 > 0:53:06We had to put steel in to keep the roof up. Getting that into the property was the biggest challenge.
0:53:06 > 0:53:09We overcame it.
0:53:09 > 0:53:14Mark makes it all sound so easy, but Paul knows better than that.
0:53:14 > 0:53:20There was about seven or eight of us having to carry the steel round the back.
0:53:20 > 0:53:27Up through the bedroom window, which was a bit difficult, but we managed it.
0:53:27 > 0:53:31# Just keep passing the open windows... #
0:53:33 > 0:53:38And with everything done to their engineer's specifications,
0:53:38 > 0:53:43replacing that load-bearing wall with the RSJ shouldn't cause any structural issues.
0:53:43 > 0:53:47They haven't been working on this property full-time.
0:53:47 > 0:53:51In fact, Mark has good reason to be distracted.
0:53:51 > 0:53:56I've got my second child on the way. A baby boy, we've found out.
0:53:56 > 0:54:01So my wife tells me now I've got to work even harder.
0:54:01 > 0:54:03# Da-Daddy... #
0:54:04 > 0:54:09Congratulations. So how long has the work here actually taken?
0:54:09 > 0:54:13It's taken about 5-6 weeks to complete.
0:54:13 > 0:54:19Obviously, with the decorators, plumbers, electricians, plasterers,
0:54:19 > 0:54:26builders, we've had quite a bit of work on, but it has come out pretty good, to be fair.
0:54:27 > 0:54:33So they're within their timescale, but are they within their £10,000-£15,000 budget?
0:54:34 > 0:54:41Probably about £10,000 is the ballpark figure. I must admit I'm not 100% to the nearest penny,
0:54:41 > 0:54:45but we're around that figure. Somewhere around there.
0:54:46 > 0:54:51A £10,000 spend brings their total outlay to £53,000.
0:54:51 > 0:54:57We asked two local property experts to cast their eyes over the work.
0:54:57 > 0:55:02First up, the expert who saw this mid-terrace first time round.
0:55:02 > 0:55:06Overall, the impression is that it's been done to a budget, but done well.
0:55:06 > 0:55:08They've made a very nice job.
0:55:08 > 0:55:12Overall impression is that they've done a very good job.
0:55:12 > 0:55:18Changing it to a three-bedroom property is great. It enhances the market it's designed for.
0:55:18 > 0:55:23What could the property fetch on the resale market?
0:55:23 > 0:55:29If I was to put this property on the market, I would put it on for £75,000.
0:55:29 > 0:55:34If I put this on the market, I'd put it on at an asking price of £75,000.
0:55:34 > 0:55:38That's brilliant. That's where we expected it to be.
0:55:38 > 0:55:42- No problems with that whatsoever. Fantastic.- Very good.
0:55:43 > 0:55:50A sale at £75,000 would mean a profit before tax and expenses of £22,000,
0:55:50 > 0:55:54which is very healthy indeed, but Mark's plan is to rent this one out.
0:55:54 > 0:55:58In fact, he's already got a tenant lined up.
0:55:58 > 0:56:05If I was to put this property on the market to rent, I would expect it to achieve £450 per calendar month.
0:56:05 > 0:56:11If I was to place this on the market for rent, I would expect to achieve £450 per calendar month.
0:56:11 > 0:56:16We've got a tenant lined up at 475, so again we can't really complain.
0:56:18 > 0:56:25£475 per month gives Mark a yield of almost 11%, which is great news.
0:56:25 > 0:56:31So while he's about to become a dad for the second time, what's on the cards for Paul?
0:56:31 > 0:56:37- I'm going to ask Mark for a pay rise for all the hard work we've done. - And he can have one in 2020.
0:56:37 > 0:56:40Thank you very much(!)
0:56:45 > 0:56:50- Join us next time for more auction action.- Will the buyers make a profit or a loss?
0:56:50 > 0:56:53Will you be envious or glad you didn't do it?
0:56:53 > 0:56:57- Join us for more Homes Under The Hammer.- See you then.- Goodbye.
0:57:15 > 0:57:18Subtitles by Red Bee Media Ltd