0:00:02 > 0:00:04Buying property can have its highs and lows.
0:00:04 > 0:00:08But there is one element of the process that you can eliminate.
0:00:08 > 0:00:10That dreaded property chain.
0:00:10 > 0:00:12How do you do that? By buying at auction.
0:00:37 > 0:00:42There are all sorts of properties that come up on auctions these days.
0:00:42 > 0:00:46There certainly are. It's that variety that keeps us all interested.
0:00:46 > 0:00:49So here are the three properties that we're featuring on today's show.
0:00:51 > 0:00:54In Chatham, Kent, I view a real find.
0:00:54 > 0:00:57A three-bed detached property with bags of potential,
0:00:57 > 0:00:59plus a possible building plot.
0:01:01 > 0:01:05In the north-east, this terrace has three floors, two flats,
0:01:05 > 0:01:07features and space.
0:01:07 > 0:01:10It is a whopper!
0:01:11 > 0:01:14And we head back to south-east London.
0:01:14 > 0:01:18Two years ago, Charles and Tima bought this Grade II listed building.
0:01:18 > 0:01:21Have their grand plans come to fruition?
0:01:22 > 0:01:25All these properties have been sold at auction.
0:01:25 > 0:01:28We'll find out who bought them and what they paid for them
0:01:28 > 0:01:30when they went under the hammer.
0:01:30 > 0:01:31Sold.
0:01:34 > 0:01:38I'm in Chatham, which started life as a small village.
0:01:38 > 0:01:41It has since developed in size around a busy dockyard
0:01:41 > 0:01:44that is now a major tourist attraction.
0:01:44 > 0:01:47Chatham's less than an hour from London by rail,
0:01:47 > 0:01:49making it attractive to commuters.
0:01:49 > 0:01:53The street I am on today is mainly made up of terraced houses.
0:01:53 > 0:01:54However...
0:01:54 > 0:01:57The property I'm here to see is actually detached.
0:01:57 > 0:01:59A real bonus.
0:01:59 > 0:02:00It's got three bedrooms
0:02:00 > 0:02:05and a guide price of 165,000-175,000.
0:02:05 > 0:02:08That doesn't sound like a lot of property for the money yet,
0:02:08 > 0:02:12but let's not judge it too quickly. Here it is.
0:02:12 > 0:02:16A rather attractive house popping up over this hedge.
0:02:16 > 0:02:19I reckon there's a decent sized garden to the side.
0:02:19 > 0:02:22Well, let's start by heading inside first.
0:02:22 > 0:02:27There's no off-street parking but that may not be a deal-breaker
0:02:27 > 0:02:29and the outside bodes well.
0:02:29 > 0:02:33With this property there's a little bit more than meets the eye.
0:02:33 > 0:02:36But first of all, let's talk about what we can see.
0:02:36 > 0:02:39That is a very nice hallway.
0:02:39 > 0:02:42It feels solid, it feels well built, this house.
0:02:42 > 0:02:47Yes, it is dated, it needs new carpets, lots of wallpaper stripping off
0:02:47 > 0:02:49but it is a beautiful and bright sunny space.
0:02:49 > 0:02:52You've got a double aspect window, one at either end.
0:02:52 > 0:02:55The walls have already been knocked down.
0:02:55 > 0:02:59You've got the kitchen, so you can have a chat with your friends whilst you're cooking supper.
0:02:59 > 0:03:03I'd go as far as saying this is a really sociable house.
0:03:04 > 0:03:08I do like an open-plan layout and this one works a treat.
0:03:10 > 0:03:13Upstairs, there are two double bedrooms and a single
0:03:13 > 0:03:15all in need of a bit of a makeover.
0:03:17 > 0:03:20The bathroom's also up here and it is rather tired
0:03:20 > 0:03:24but you don't need to do any structural work on this floor.
0:03:26 > 0:03:29There's a massive basement full of possibilities
0:03:29 > 0:03:31with the appropriate planning permission.
0:03:31 > 0:03:35There's something else about this house that's got me thinking.
0:03:35 > 0:03:36Aye-aye!
0:03:36 > 0:03:41You might be wondering why I was giving you a bit of a cheeky wink earlier.
0:03:41 > 0:03:45That's because I've not been telling you the whole truth.
0:03:45 > 0:03:48Come outside and I can reveal all.
0:03:48 > 0:03:51# I know a secret
0:03:51 > 0:03:54# It's about you... #
0:03:54 > 0:03:57Just look at this large garden at the back.
0:03:57 > 0:03:59But no, that's not the most exciting news.
0:04:01 > 0:04:05Not only do you have this rather pleasant house.
0:04:05 > 0:04:07Have you guessed yet?
0:04:07 > 0:04:11Well, it also comes with planning permission for a three-bedroom house
0:04:11 > 0:04:16to be built here next door, creating two semidetached houses overall.
0:04:16 > 0:04:20This auction lot suddenly seems much more lucrative.
0:04:20 > 0:04:23Yes, you would have to spend money building a new house here
0:04:23 > 0:04:27but I think the return would far outweigh the initial outlay
0:04:27 > 0:04:31and, personally, I can imagine two properties sitting here
0:04:31 > 0:04:33in this residential spot.
0:04:33 > 0:04:36There is more to this lot than it first appeared.
0:04:36 > 0:04:38Have I got your attention now?
0:04:38 > 0:04:41# Give a little bit of attention to me
0:04:41 > 0:04:44# Yeah, baby, baby... #
0:04:44 > 0:04:46It only has outline planning at this stage
0:04:46 > 0:04:50so you'd still need to submit full plans to the local council.
0:04:50 > 0:04:53There's also some work to do before you can start building
0:04:53 > 0:04:56but, in principle, the planners are happy for a new semi
0:04:56 > 0:04:58to be built on this land.
0:04:58 > 0:05:01I'm still not finished with the plus points here.
0:05:01 > 0:05:05I've told you about the building plot, here are the garages.
0:05:05 > 0:05:07Not one, but two.
0:05:07 > 0:05:09And they come with their own access.
0:05:10 > 0:05:12That means even more potential income
0:05:12 > 0:05:15as you can rent these out separately.
0:05:16 > 0:05:19Time to hear what a local estate agent thinks of this
0:05:19 > 0:05:21ever-expanding auction lot,
0:05:21 > 0:05:26guided at 165,000-175,000.
0:05:26 > 0:05:28I think there's a lot of work that needs to be done.
0:05:28 > 0:05:31Decor, kitchen, bathroom.
0:05:31 > 0:05:34I think the whole house would benefit from a refurb.
0:05:34 > 0:05:37What about adding another semi to the side?
0:05:38 > 0:05:42I think in any other area I wouldn't change a property
0:05:42 > 0:05:46that's detached to a semidetached because it would lose value.
0:05:46 > 0:05:50However, I definitely think that a three-bedroom semidetached would be
0:05:50 > 0:05:54more saleable in this area because of the house styles around it.
0:05:55 > 0:05:57Let's turn to figures then.
0:05:57 > 0:06:00If the house was done up but left as a single property,
0:06:00 > 0:06:02what could it sell on for?
0:06:02 > 0:06:04If this was renovated as a detached house
0:06:04 > 0:06:10I would expect to achieve £175,000-£180,000.
0:06:10 > 0:06:12What if it was let?
0:06:13 > 0:06:16If this house was renovated and rented out,
0:06:16 > 0:06:21I think we'd be able to achieve £850-£900 per calendar month.
0:06:21 > 0:06:24What if the owner did build a semi at the side?
0:06:24 > 0:06:27Each semidetached house on this plot would achieve
0:06:27 > 0:06:30£140,000-£150,000.
0:06:30 > 0:06:34So, if it was built, what could they both rent out for?
0:06:34 > 0:06:38Each semidetached house would rent for approximately £700-£750
0:06:38 > 0:06:40per calendar month.
0:06:41 > 0:06:46Well, this auction lot suddenly got a whole lot more exciting
0:06:46 > 0:06:48with the addition of that building plot.
0:06:48 > 0:06:51I always say the best way to make money with property
0:06:51 > 0:06:53is to increase the square footage
0:06:53 > 0:06:58and on this occasion you could build yourself a whole second house.
0:06:58 > 0:07:00That screams out potential to me.
0:07:00 > 0:07:03Let's see who agreed when we went to the auction.
0:07:03 > 0:07:07It's an existing detached house on a corner plot
0:07:07 > 0:07:11with planning for an additional unit next door, adjoining.
0:07:11 > 0:07:12Start at 150,000.
0:07:12 > 0:07:14150, I'm on the way. I should think so too.
0:07:14 > 0:07:17Lots of interest in this property at the auction
0:07:17 > 0:07:21and the bidding was quick to get up to that £180,000 mark
0:07:21 > 0:07:23where we rejoin it.
0:07:23 > 0:07:26Shall we say 180? 180.
0:07:26 > 0:07:28180 and two. 182.
0:07:28 > 0:07:30182 anywhere?
0:07:30 > 0:07:33At £180,000 then, I've got for the first time.
0:07:33 > 0:07:35If I don't get another two...
0:07:35 > 0:07:37£180,000 for the second time...
0:07:37 > 0:07:39182, I'm obliged.
0:07:39 > 0:07:41184.
0:07:41 > 0:07:42184.
0:07:42 > 0:07:46184. 184 and six.
0:07:46 > 0:07:47186?
0:07:47 > 0:07:51£184,000. Again, for the first time.
0:07:51 > 0:07:54184,000 for the second time.
0:07:54 > 0:07:56Second row in, it is. Make no mistake.
0:07:56 > 0:08:00Third and final time. Put your hand in the air sir, for the £184,000,
0:08:00 > 0:08:02so we know it's you because you're both sitting in front...
0:08:02 > 0:08:05That's the bid I've got. £184,000. Are we all done?
0:08:05 > 0:08:06Yours.
0:08:08 > 0:08:13That mystery bidder who secured the property for 184,000 was Dev.
0:08:14 > 0:08:18He's bought this detached house along with his brother, Rohit.
0:08:18 > 0:08:22Sadly, that tantalising glimpse of Dev is all we'll see of him
0:08:22 > 0:08:25as he couldn't meet me at their new purchase.
0:08:25 > 0:08:27So, it was Rohit that I met there.
0:08:28 > 0:08:32Congratulations, let's talk about this property.
0:08:32 > 0:08:35You have got yourselves a great, solid house.
0:08:35 > 0:08:36Yes, it looks in pretty good nick.
0:08:36 > 0:08:40There are one or two things, some repointing to be done outside,
0:08:40 > 0:08:41particularly the back.
0:08:41 > 0:08:45We would need to redecorate and obviously modernise things
0:08:45 > 0:08:47like the bathroom, toilet, kitchen.
0:08:47 > 0:08:50But apart from that, there isn't much structural work to be done.
0:08:50 > 0:08:53Prior to the auction, did you or your brother get a chance
0:08:53 > 0:08:55to have a look around?
0:08:55 > 0:08:57No, we didn't have a look at this property inside
0:08:57 > 0:08:59but the builder did have a look around.
0:08:59 > 0:09:03He's someone we've employed for various other things.
0:09:03 > 0:09:06He felt it was worth taking a risk, not a risk,
0:09:06 > 0:09:09- taking a chance at the property. - Are you pleased?
0:09:09 > 0:09:13Now you've had a chance with your brother to come along
0:09:13 > 0:09:15- and have a look at the property. - Yes, we are very pleased.
0:09:15 > 0:09:19Hopefully we can let it out fairly soon for rental.
0:09:19 > 0:09:22We will need full planning permission
0:09:22 > 0:09:25for the next property to be built.
0:09:25 > 0:09:29When we got here, we looked at the two garages at the back
0:09:29 > 0:09:33which we hope we can actually keep separate
0:09:33 > 0:09:35and let those out as well. There's some income there.
0:09:35 > 0:09:37It does come with outline planning permission.
0:09:37 > 0:09:39Do you intend to build a house on the site?
0:09:39 > 0:09:43We're not entirely sure yet. We've got two choices.
0:09:43 > 0:09:45Obviously, we could get the full planning permission
0:09:45 > 0:09:49and sell it off as a building plot to a builder
0:09:49 > 0:09:52or build ourselves and then we'd have two properties on the site.
0:09:52 > 0:09:56Rohit is a retired dentist and his brother, Dev, runs a pharmacy.
0:09:56 > 0:10:00Hopefully, they could make filling this garden gap
0:10:00 > 0:10:01as painless as possible.
0:10:02 > 0:10:05Rohit already looks after the tenants
0:10:05 > 0:10:07and does the paperwork for their portfolio.
0:10:07 > 0:10:10However, if the brothers decide to go ahead and build
0:10:10 > 0:10:11it would be quite a departure.
0:10:13 > 0:10:16- Have you ever built a house before? - No, that would be a new venture.
0:10:16 > 0:10:19What's it going to be like, the house next door?
0:10:19 > 0:10:21Very much similar to this, a three-bedroom property.
0:10:24 > 0:10:26With a lounge-diner and a kitchen.
0:10:26 > 0:10:29Hopefully, it might be a mirror image of this property.
0:10:29 > 0:10:31I think that'll attract so many buyers.
0:10:31 > 0:10:33A lovely new house on the road.
0:10:33 > 0:10:37Yes, I think so. The houses are all very different in this road.
0:10:37 > 0:10:40If you could have two that look similar, then hopefully
0:10:40 > 0:10:43there'll be more interest in that particular house as well.
0:10:43 > 0:10:46What sort of budget have you got in mind?
0:10:46 > 0:10:48We think the inside could be done,
0:10:48 > 0:10:53with replacing the central heating system as well,
0:10:53 > 0:10:57which does needs replacing, for probably under £30,000.
0:10:57 > 0:11:00I think that's probably the top figure.
0:11:00 > 0:11:04Do you think it's going to be quite an undertaking, this project?
0:11:04 > 0:11:07Yes, we are not do-it-yourselfers!
0:11:07 > 0:11:11So we would get somebody else to do all the work.
0:11:11 > 0:11:15Unlike some people who buy houses and do the hard work themselves,
0:11:15 > 0:11:19obviously there is a greater profit in that.
0:11:19 > 0:11:22But we neither have the time or energy to do that sort of work.
0:11:22 > 0:11:25We would get somebody in to do it.
0:11:25 > 0:11:27Once we hand it over to the builders and architects,
0:11:27 > 0:11:32- we just stand back and watch. - Silent partners.- Hopefully, yes.
0:11:32 > 0:11:34It's been lovely meeting you today.
0:11:34 > 0:11:36Good luck with this project and I hope it goes well.
0:11:36 > 0:11:39- Thanks very much indeed.- Well done. - Thank you.
0:11:39 > 0:11:42As a bit of a spontaneous purchase, I think retired dentist, Rohit,
0:11:42 > 0:11:46and brother, Dev, have bought really well here.
0:11:46 > 0:11:49However, now the hard work really starts
0:11:49 > 0:11:52and the decision-making begins.
0:11:52 > 0:11:56They have a lot of ideas and it is really exciting times.
0:11:56 > 0:12:01But will they get that full planning permission without a hitch?
0:12:01 > 0:12:03Or will it be like pulling teeth?
0:12:03 > 0:12:08Join me later in the show to find out which route they'll choose to take.
0:12:13 > 0:12:16# I'm pickin' up good vibrations
0:12:16 > 0:12:19# She's giving me excitations... #
0:12:19 > 0:12:24One of the gems of Britain is the beautiful Northumberland coastline
0:12:24 > 0:12:27in the north-east of England.
0:12:27 > 0:12:32I'm in Blyth, which has benefited from a £3 million investment
0:12:32 > 0:12:36over recent years, including the regeneration of the beach front here.
0:12:38 > 0:12:39# Good vibrations... #
0:12:39 > 0:12:42These wonderful beach huts have been spruced up
0:12:42 > 0:12:45and you can hire them for £21 a day or £850 a year.
0:12:47 > 0:12:50I wonder if the local rental market could tempt investors
0:12:50 > 0:12:53to dip their toe in the water?
0:12:54 > 0:12:56# Good, good vibrations...#
0:12:59 > 0:13:02Lots of new housing is springing up in Blyth,
0:13:02 > 0:13:05a sure sign of a place that's on the up.
0:13:05 > 0:13:10Newcastle's only 30 miles away, but for me this is the main attraction.
0:13:12 > 0:13:15The property I'm here to see is very close to that beach
0:13:15 > 0:13:17so in a very popular part of Blyth.
0:13:17 > 0:13:22Unfortunately, right by the side of this fairly busy main road, which isn't ideal.
0:13:22 > 0:13:26The property itself, though, is this handsome mid-terrace.
0:13:26 > 0:13:31It's over three floors, two flats, guide price was £90,000-plus.
0:13:31 > 0:13:33In we go.
0:13:36 > 0:13:39So, first of all into flat number one.
0:13:39 > 0:13:41Nice high ceilings, we like that.
0:13:41 > 0:13:44Look at the size of that front room. Absolutely fantastic.
0:13:44 > 0:13:46Lovely, original features too.
0:13:46 > 0:13:51That thing on the ceiling there looks to be in half decent condition.
0:13:51 > 0:13:53Small bedroom, which is a bit of a disappointment.
0:13:53 > 0:13:56And then through to the rear of the property.
0:13:56 > 0:13:58It really has got me a bit perplexed
0:13:58 > 0:14:02because the property is described as a one-bedroom flat.
0:14:02 > 0:14:04Is that the bedroom?
0:14:04 > 0:14:08I mean, I would, if it was my flat,
0:14:08 > 0:14:10make that big front room the bedroom
0:14:10 > 0:14:14and have that as a second bedroom or a study.
0:14:14 > 0:14:17The only problem you've got is noise from the road.
0:14:17 > 0:14:20You wouldn't lose living space because look at this.
0:14:20 > 0:14:23You would lose living space, but I don't think you need it
0:14:23 > 0:14:27because you've got this really nice-sized rear living room here.
0:14:27 > 0:14:29Off that, the kitchen.
0:14:29 > 0:14:32It is all in pretty good nick, look at this.
0:14:32 > 0:14:35It hasn't got a cooker and a cooker hood and stuff
0:14:35 > 0:14:38but slap a couple of those in and perfectly serviceable.
0:14:38 > 0:14:40Good start.
0:14:40 > 0:14:43# Oh, what a result
0:14:43 > 0:14:46# Top of the league
0:14:46 > 0:14:48# On a winning streak... #
0:14:48 > 0:14:52The bathroom is off the kitchen but again it's in pretty decent condition.
0:14:52 > 0:14:56I think this is a very spacious ground floor flat.
0:14:58 > 0:15:01# R-E-S-U-L-T now... #
0:15:02 > 0:15:04This is only the start.
0:15:04 > 0:15:08There is still a three-bedroom maisonette on the upper floors to explore.
0:15:10 > 0:15:13So, up these stairs into the second flat.
0:15:13 > 0:15:17And it is a whopper!
0:15:17 > 0:15:21Honestly, I don't think I've seen a flat this big ever.
0:15:21 > 0:15:23You've got some stairs leading to the top floor there
0:15:23 > 0:15:27but that's just one of three floors. We're on the middle floor here.
0:15:27 > 0:15:30Bedroom there, that's not massive, but come in here.
0:15:30 > 0:15:35Absolutely ginormous living space. I absolutely love it.
0:15:35 > 0:15:38Lots of light flooding in through the windows, high ceilings.
0:15:38 > 0:15:43Then come through here into, I think, an extension bit on the back,
0:15:43 > 0:15:48where you've got your lower floor there, which has got utility bits and pieces.
0:15:48 > 0:15:50Then the kitchen here.
0:15:50 > 0:15:53Again, the double aspect gives it loads of light
0:15:53 > 0:15:56and makes it a lovely space to work in.
0:15:56 > 0:15:58In terms of quality of the units and the condition it's in,
0:15:58 > 0:16:01it's not brilliant, but it is perfectly serviceable.
0:16:01 > 0:16:05So... SURPRISED GASP
0:16:05 > 0:16:08The flat has another small bedroom on this floor
0:16:08 > 0:16:14but I can live with that given the surprising size of that vast living space.
0:16:14 > 0:16:16The place has loads of character.
0:16:16 > 0:16:19I'm just loving the banisters.
0:16:19 > 0:16:23And so on up the stairs of this house, which is fast becoming a deceptive delight.
0:16:27 > 0:16:31Up here on the top floor, it carries on impressing.
0:16:31 > 0:16:36Really nice sized bathroom with a separate shower and a bath and a loo.
0:16:36 > 0:16:41Then, slightly odd, but you've got another loo there.
0:16:41 > 0:16:43Then through into this room here,
0:16:43 > 0:16:46I love attic rooms, so this ticks my boxes.
0:16:46 > 0:16:49A bit of a dormer there, lots of light again.
0:16:49 > 0:16:55There is absolutely nothing flat about this flat.
0:16:55 > 0:16:59Nope, these flats definitely have a fizz.
0:16:59 > 0:17:02# In a champagne supernova
0:17:02 > 0:17:06# A champagne supernova in the sky...#
0:17:08 > 0:17:11I'm not so sure about the champagne bathroom suite
0:17:11 > 0:17:14but at least it's not avocado.
0:17:14 > 0:17:17I reckon if the new owner picked up this up for anywhere near
0:17:17 > 0:17:20the guide price of £90,000-plus, they'd have got a real bargain.
0:17:23 > 0:17:25To get more information about this pair of properties,
0:17:25 > 0:17:28we spoke to a local property expert
0:17:28 > 0:17:31who's familiar with the housing market in Blyth.
0:17:34 > 0:17:36I think in the ground floor flat, the front reception room
0:17:36 > 0:17:40needs to be the double bedroom because the other bedroom isn't very big.
0:17:40 > 0:17:42In the maisonette upstairs, there's a huge bathroom
0:17:42 > 0:17:45which you could possibly convert into another bedroom
0:17:45 > 0:17:48but it would be up to the new owner to decide whether they need that
0:17:48 > 0:17:51because there is a lot of space up there already.
0:17:51 > 0:17:54I like the fact the properties have retained some original features.
0:17:54 > 0:17:56Both properties have a separate yard each.
0:17:56 > 0:17:59It means, when we do get the sun, there's somewhere to sit on an evening.
0:17:59 > 0:18:02OK, the yards are small but they are private
0:18:02 > 0:18:04and each have their own gate.
0:18:04 > 0:18:07A definite bonus which could appeal to tenants.
0:18:07 > 0:18:10How much rental income could these flats generate?
0:18:10 > 0:18:14I would recommend around about £425 per month for the ground floor one
0:18:14 > 0:18:18and the maisonette, £475 for that one.
0:18:18 > 0:18:22That combined rental income of £900 per calendar month
0:18:22 > 0:18:25would produce a very impressive 12% yield.
0:18:25 > 0:18:29What resale valuation could the two flats achieve after refurbishment?
0:18:31 > 0:18:35For the ground floor flat I would recommend an asking price of around £60,000.
0:18:35 > 0:18:38It doesn't really need a lot of work doing at all.
0:18:38 > 0:18:40The maisonette, depending on what standard that would be up to,
0:18:40 > 0:18:43I would expect an asking price of around £75,000.
0:18:43 > 0:18:47Well, it is a lot of property, or rather properties,
0:18:47 > 0:18:49for that 90,000-plus guide price.
0:18:49 > 0:18:54Some potentially very impressive rental yield.
0:18:54 > 0:18:58What's not to like? Let's see who agreed when it went under the hammer.
0:18:59 > 0:19:01Lot number 18.
0:19:01 > 0:19:05I'm going to move up into Northumberland now and into Blyth.
0:19:05 > 0:19:0680,000 anywhere?
0:19:06 > 0:19:09Left-hand side, gentleman standing, at £80,000.
0:19:09 > 0:19:11Do I have 81 anywhere else?
0:19:11 > 0:19:1381 sitting. 82. 83.
0:19:13 > 0:19:1684. 85. 86.
0:19:16 > 0:19:1987. 88. 89. 90.
0:19:19 > 0:19:2191. 92.
0:19:21 > 0:19:24Three. Four. Five. Six. Seven.
0:19:24 > 0:19:25Eight. Nine.
0:19:25 > 0:19:2898,000 on the left. 99.
0:19:29 > 0:19:32No? I'll take 500, 98,500.
0:19:32 > 0:19:3498,500 bid. 500, 99.
0:19:34 > 0:19:3699,500. 100.
0:19:36 > 0:19:38100,500.
0:19:38 > 0:19:40I'm here, left-hand side at £100,000.
0:19:40 > 0:19:43500 anywhere else?
0:19:43 > 0:19:45I'm here once at 100,000.
0:19:45 > 0:19:49I'm going for the second time at £100,000.
0:19:49 > 0:19:52Sold, gentleman on the left-hand side.
0:19:52 > 0:19:57The successful bidders who paid £100,000 were Carol and Anthony.
0:19:57 > 0:20:00They have a rental portfolio across a number of properties
0:20:00 > 0:20:03in north Tyneside and Northumberland.
0:20:03 > 0:20:06They're particularly keen on coastal towns
0:20:06 > 0:20:08and Blyth certainly has a lot to offer.
0:20:08 > 0:20:11I met up with them to hear about their plans.
0:20:13 > 0:20:16- Anthony, Carol, great to meet you both.- Likewise.
0:20:16 > 0:20:19- Congratulations.- Thank you.
0:20:19 > 0:20:21- Good property.- Very nice.
0:20:21 > 0:20:24What particularly attracted you to this place, Carol?
0:20:24 > 0:20:29We own the flat that's next door on the ground floor.
0:20:29 > 0:20:32We came to do a repair, noticed it was up for sale
0:20:32 > 0:20:35and decided to look into it,
0:20:35 > 0:20:39see how much it was up for and then attended the auction
0:20:39 > 0:20:41and were lucky enough to buy it.
0:20:42 > 0:20:46Carol and Anthony have been in the property game for 20 years now.
0:20:46 > 0:20:49They've certainly been able to make it work.
0:20:49 > 0:20:52Carol works full-time for the couple's property business
0:20:52 > 0:20:55and while Anthony works for a large IT company,
0:20:55 > 0:21:00he's now part-time, allowing him to concentrate more energy on property development.
0:21:00 > 0:21:03The couple's experience has certainly paid off with this one.
0:21:03 > 0:21:06They did their homework, for one thing, which is essential
0:21:06 > 0:21:08when you're bidding at auction.
0:21:08 > 0:21:10We did a lot of research on this one before we bought it
0:21:10 > 0:21:14because there were a few issues, legal issues, because although
0:21:14 > 0:21:16they're two separate flats, on the Land Registry,
0:21:16 > 0:21:20they are separate flats but there's no leases.
0:21:20 > 0:21:23So the properties couldn't be sold as separate entities.
0:21:23 > 0:21:26They'd become unmortgageable as two properties,
0:21:26 > 0:21:28they had to be bought as one.
0:21:28 > 0:21:31We knew, if we found out this before the auction,
0:21:31 > 0:21:35so I sent a legal pack to our solicitor, spoke to my financial adviser,
0:21:35 > 0:21:37everything was fairly straightforward.
0:21:37 > 0:21:40Just a little bit of work once we bought them and that's it.
0:21:40 > 0:21:44Now they're going to be split legally into two separate entities
0:21:44 > 0:21:47for future refinancing or selling.
0:21:47 > 0:21:50- It was obviously clear in the legal pack.- Yes.
0:21:50 > 0:21:52But if you didn't read the legal pack...
0:21:52 > 0:21:54You wouldn't have been aware of it.
0:21:54 > 0:21:58This experienced duo made sure to go to a specialist mortgage company
0:21:58 > 0:22:03who provided them with a mortgage across the freehold of the two flats.
0:22:03 > 0:22:07With a tight deadline of 21 days to complete, arrange finance and get a survey,
0:22:07 > 0:22:12these two were prepared because they read the legal pack.
0:22:12 > 0:22:15They could have lost their deposit and property if they hadn't.
0:22:15 > 0:22:18What are their plans for this promising pair of pads?
0:22:20 > 0:22:22Downstairs flat, we'll have the electrics upgraded
0:22:22 > 0:22:26and then there's about ten metres of rising damp to cure.
0:22:26 > 0:22:28That work's going to start on Monday, take two days.
0:22:28 > 0:22:32After that, there will just be decorating, carpets,
0:22:32 > 0:22:34and then get that rented.
0:22:34 > 0:22:38In the bigger flat, this one, it is going to have the electrics done.
0:22:38 > 0:22:42We're going to convert one of the rooms into the master bedroom.
0:22:42 > 0:22:45You can still have the option of having this as the dining room
0:22:45 > 0:22:48and that as a lounge, but there'll be a wall up.
0:22:48 > 0:22:50It gives you a better option for bedrooms.
0:22:50 > 0:22:54- What about kitchens and bathrooms? - They're all in good repair.
0:22:54 > 0:22:57Nothing wrong with them whatsoever. Freshen them up and that's it.
0:22:58 > 0:23:02The couple have set a modest budget of £4,000-£5,000.
0:23:02 > 0:23:04The guys who work for them are currently renovating another
0:23:04 > 0:23:08of their properties and will then spend three to four weeks
0:23:08 > 0:23:12on these two flats, getting them ready to let and generate some income.
0:23:13 > 0:23:18So, another property for Anthony and Carol to add to their portfolio.
0:23:18 > 0:23:21And a jolly good one it is too.
0:23:21 > 0:23:25I'm glad they spotted those potential issues in the legal pack
0:23:25 > 0:23:27and have got them sorted.
0:23:27 > 0:23:32Still, can they really do this place up within that timescale
0:23:32 > 0:23:34and that fairly limited budget?
0:23:34 > 0:23:36You can find out later in the show.
0:23:38 > 0:23:41Still to come, we go back to a stunning listed house
0:23:41 > 0:23:42we first saw two years ago.
0:23:42 > 0:23:45I only had one word...
0:23:45 > 0:23:47perfection!
0:23:48 > 0:23:53Back in Northumberland, these two flats turn in a decent profit for Anthony and Carol.
0:23:53 > 0:23:57- That's really good.- Higher than I thought.- Higher than I thought too.
0:24:00 > 0:24:02But first, in Chatham, Kent,
0:24:02 > 0:24:06we find out if one house has become two.
0:24:11 > 0:24:13Back now to Chatham in Kent.
0:24:13 > 0:24:16Earlier, this three-bedroom detached property
0:24:16 > 0:24:18had sold for 184,000 at auction
0:24:18 > 0:24:23to Rohit, a retired dentist, and his pharmacist brother, Dev.
0:24:23 > 0:24:27Their plan was to renovate and rent it out.
0:24:27 > 0:24:30But there was more to this place than first met the eye.
0:24:30 > 0:24:33It came with this plot of land to the side,
0:24:33 > 0:24:36perfect for building on, perhaps.
0:24:37 > 0:24:40Do you intend to build a house on the site?
0:24:40 > 0:24:43We're not entirely sure yet. We've got two choices.
0:24:43 > 0:24:45Obviously, we could get the full planning permission
0:24:45 > 0:24:48and sell it off as a building plot to a builder,
0:24:48 > 0:24:52or perhaps build ourselves and then we'd have two properties on the site.
0:24:52 > 0:24:56- Have you ever built a house before? - No, that would be a new venture.
0:24:56 > 0:24:59It would certainly add to the value of the property,
0:24:59 > 0:25:01but it is a major undertaking.
0:25:01 > 0:25:03So let's return now, four months later,
0:25:03 > 0:25:07and it's pretty clear they haven't built on it yet.
0:25:07 > 0:25:10They've kept things simple and concentrated on bringing
0:25:10 > 0:25:14the inside of the existing property up to scratch.
0:25:14 > 0:25:17# Wherever you go, I want to be there
0:25:17 > 0:25:20# Whatever you do You know I'm going to be there
0:25:20 > 0:25:24# It's pure and simple I'll be there for you
0:25:24 > 0:25:27# Pure and simple Going to be there... #
0:25:27 > 0:25:30Remember, they plan to let it out
0:25:30 > 0:25:34so they have very much left it as a blank canvas for whoever moves in.
0:25:34 > 0:25:39Rohit couldn't come along, but Dev talks us through the work in the front room.
0:25:39 > 0:25:41In the living room, basically, what we decided to do
0:25:41 > 0:25:45was leave the ceiling as it was and just paint over it.
0:25:45 > 0:25:48There was a fireplace, gas fire in the chimney breast,
0:25:48 > 0:25:49which we felt was quite old.
0:25:49 > 0:25:52We had the gas fire removed, plastered over
0:25:52 > 0:25:56and basically the whole room was redecorated and re-carpeted.
0:25:58 > 0:26:02Although nothing too fancy has been done, it's fit for purpose.
0:26:02 > 0:26:06The whole place has been rewired, replumbed
0:26:06 > 0:26:08and a new boiler's been fitted.
0:26:08 > 0:26:11They've also replaced the roof but not everything needed doing.
0:26:11 > 0:26:13The windows were in good condition
0:26:13 > 0:26:16so they didn't have to be replaced, that was a major saving.
0:26:16 > 0:26:18Behind the wallpaper when it was stripped,
0:26:18 > 0:26:20was in very good condition.
0:26:20 > 0:26:25We did expect some problems but actually, quite minor problems.
0:26:25 > 0:26:29All it needed was a little bit of filling and sanding down and repainting.
0:26:29 > 0:26:31Overall, very pleased with what we found.
0:26:31 > 0:26:34They opted not to replace the kitchen
0:26:34 > 0:26:38which surely helped their £30,000 budget.
0:26:39 > 0:26:42The kitchen, we did think about replacing
0:26:42 > 0:26:47but we decided that the current kitchen was sufficient for this purpose.
0:26:47 > 0:26:49It's all good so far.
0:26:49 > 0:26:53Have they had any thoughts about that plot of land and what they're going to do with it?
0:26:53 > 0:26:56Originally, it came with outline planning permission
0:26:56 > 0:26:58but the diagrams were very poor.
0:26:58 > 0:27:01We resubmitted the diagrams and we're hoping
0:27:01 > 0:27:04to get planning permission for a three-bedroom property.
0:27:04 > 0:27:07We have a choice of either building it or dividing the land
0:27:07 > 0:27:11and selling the plot off as a potential self build.
0:27:13 > 0:27:14It's a valuable asset
0:27:14 > 0:27:18and the potential return on the property didn't stop there.
0:27:18 > 0:27:21They've also decided to rent out the two garages as well
0:27:21 > 0:27:25and reckon they can get £15 a week per garage.
0:27:26 > 0:27:30Obviously, building a brand-new house will be a huge cost
0:27:30 > 0:27:32but for the work on the existing property,
0:27:32 > 0:27:34they'd hoped to spend less than 30,000.
0:27:34 > 0:27:36Did they stick to that?
0:27:37 > 0:27:40We came in at 21,000.
0:27:40 > 0:27:45That includes finishing the garages off, preparing the garage roof,
0:27:45 > 0:27:49dividing the plot, so the fencing goes in between.
0:27:49 > 0:27:52That was considerably less than we expected.
0:27:52 > 0:27:55The architect fees came to 3,500.
0:27:55 > 0:27:58We had budgeted for 5,000, but it came in as 3,500
0:27:58 > 0:28:00so we're well under budget.
0:28:01 > 0:28:05We asked two local property experts, including the one
0:28:05 > 0:28:08who viewed it last time, to give us their opinions of the work here.
0:28:08 > 0:28:12Feels very fresh, there's obviously been quite a lot of work done here.
0:28:12 > 0:28:14I can see there are nice new ceilings.
0:28:14 > 0:28:15The paintwork's clean and tidy.
0:28:15 > 0:28:18I've seen quite a few changes from what it was before
0:28:18 > 0:28:20and he's done a lovely job, made it all neutral
0:28:20 > 0:28:24and something somebody can come in and put their own print on.
0:28:24 > 0:28:25On to values, then.
0:28:25 > 0:28:30As it is now, how much could it fetch on the resale markets?
0:28:30 > 0:28:33Remember, the brothers paid 184,000 at auction
0:28:33 > 0:28:36and have spent £21,000 on the work,
0:28:36 > 0:28:41making a total outlay of £205,000.
0:28:41 > 0:28:44If I had to value this property as I see it today,
0:28:44 > 0:28:48I would be estimating the valuation to be around the £200,000 mark.
0:28:48 > 0:28:51If I was to put this property on the market for sale today,
0:28:51 > 0:28:56I would expected it to achieve anywhere between £200,000-£225,000.
0:28:56 > 0:28:58A lot more than I expected, I have to say,
0:28:58 > 0:29:00so I'm very pleased with that.
0:29:01 > 0:29:07That top figure of 225,000 would net them a twenty grand profit,
0:29:07 > 0:29:09minus the usual tax and fees.
0:29:09 > 0:29:15But they also have the potential of the land next to it.
0:29:15 > 0:29:19So what could that be worth with planning permission granted
0:29:19 > 0:29:21or even with another house built?
0:29:21 > 0:29:25If I had to value the land by itself as a potential building plot,
0:29:25 > 0:29:28I'd suggest a valuation around £90,000.
0:29:28 > 0:29:30A dwelling built on that piece of land,
0:29:30 > 0:29:33a semidetached to this property here, I would say
0:29:33 > 0:29:36would probably be not too far from the valuation of this property.
0:29:36 > 0:29:37Around the £200,000 mark.
0:29:37 > 0:29:40I would think that if the full planning permission was agreed
0:29:40 > 0:29:43on the land, we would be looking at around £80,000-£100,000.
0:29:43 > 0:29:46If they put a three-bedroom semidetached house on there,
0:29:46 > 0:29:50I would expect that to achieve £225,000.
0:29:50 > 0:29:52On the land, I'm quite surprised with the valuation.
0:29:52 > 0:29:56I would have expected something in the region of £50,000, possibly 60,000,
0:29:56 > 0:29:58so I'm absolutely delighted with the valuation.
0:29:58 > 0:30:02They've already had some estimates of around 75,000
0:30:02 > 0:30:04to build the property,
0:30:04 > 0:30:07so potentially another 150,000 worth of profit,
0:30:07 > 0:30:10again, minus fees and tax.
0:30:10 > 0:30:12But that's all in the future.
0:30:12 > 0:30:16For now, Dev and his brother Rohit plan to rent this place out.
0:30:16 > 0:30:18What income could that generate?
0:30:18 > 0:30:21A three-bedroom semidetached house in this area
0:30:21 > 0:30:24would rent for £800-£900 per calendar month.
0:30:24 > 0:30:26A three-bedroom property around here
0:30:26 > 0:30:30would rent for around £825 per calendar month
0:30:30 > 0:30:32to £850 per calendar month.
0:30:32 > 0:30:34Fortunately, we've already got a tenant
0:30:34 > 0:30:37and we are going to get £850 a month.
0:30:37 > 0:30:42So they've got their figures spot on, with a yield of nearly 5%,
0:30:42 > 0:30:46and if they ever do sell or even build that other house,
0:30:46 > 0:30:50they can rest assured they're sitting on a nice little nest egg.
0:30:53 > 0:31:00Back in 2011, I visited an intriguing Grade II property in Camberwell,
0:31:00 > 0:31:01south-east London.
0:31:01 > 0:31:05With the lovely park nearby undergoing massive regeneration,
0:31:05 > 0:31:07the location was certainly promising.
0:31:10 > 0:31:12The park is undergoing a transformation.
0:31:12 > 0:31:14How far do you have to go
0:31:14 > 0:31:17to find a property that's in need of much the same?
0:31:17 > 0:31:19Not very far at all.
0:31:19 > 0:31:22In fact, the property I'm here to see is just here.
0:31:22 > 0:31:26It's a grand Georgian semidetached and a guide price of £330,000.
0:31:26 > 0:31:30Straight away, we know no matter what it's like inside,
0:31:30 > 0:31:32it's got great views.
0:31:34 > 0:31:36Great views but not a great entrance.
0:31:36 > 0:31:39These semidetached Georgian houses have their main door
0:31:39 > 0:31:42upstairs on the side.
0:31:42 > 0:31:45In this case, it's blocked off so I'm heading for the current front door,
0:31:45 > 0:31:50which is in a rather dingy-looking ground floor extension.
0:31:51 > 0:31:53The house is spread over three floors.
0:31:53 > 0:31:56It has a characterful but tatty facade
0:31:56 > 0:32:00and on the face of it seems like a lot of London property for £330,000.
0:32:02 > 0:32:05Bit of a shame, for such a grand house,
0:32:05 > 0:32:07that you have to gain access, at the moment,
0:32:07 > 0:32:11through this downstairs and fairly unpleasant rear entrance.
0:32:11 > 0:32:14It doesn't get any better when you get in because this,
0:32:14 > 0:32:18believe it or not, is the kitchen. It's just horrible.
0:32:18 > 0:32:20Very low ceilings.
0:32:20 > 0:32:23You've got a strange roof light thing going on there.
0:32:23 > 0:32:25And then down into the living room... And this head height thing -
0:32:25 > 0:32:27what is going on here?
0:32:29 > 0:32:33There must be about two inches above my head so about six foot.
0:32:33 > 0:32:38Not good at all. And it continues all the way over this ground floor.
0:32:38 > 0:32:42The good news is there is a reasonable amount of floor space.
0:32:42 > 0:32:45I wonder if there is a way of raising this ceiling
0:32:45 > 0:32:47because then it would give it a much better feel.
0:32:47 > 0:32:50Also, maybe there's some playing around with layout you could do
0:32:50 > 0:32:54and I think one of the keys to that is what we find in the garden.
0:32:56 > 0:32:57So what have we got?
0:32:57 > 0:33:00We've got this strange corrugated roof, lean-to affair,
0:33:00 > 0:33:04which is definitely ready for demolition, but then good news -
0:33:04 > 0:33:07this fairly flat area, which has got a concrete base,
0:33:07 > 0:33:11which would be the ideal spot for some kind of extension,
0:33:11 > 0:33:14extending the kitchen and living room to create something,
0:33:14 > 0:33:18maybe with a glass roof - really make the most of the location.
0:33:18 > 0:33:20That may well be within permitted development rules.
0:33:20 > 0:33:24However, the house is listed and therefore you're going to have
0:33:24 > 0:33:27to go through listed building consent before you do anything.
0:33:27 > 0:33:31The downside could be that it's going to eat away into the garden.
0:33:33 > 0:33:36Actually, it's not going to be too much of an issue.
0:33:36 > 0:33:38It's ginormous.
0:33:38 > 0:33:40No, really.
0:33:43 > 0:33:46I mean, can you see how far it is? Fantastic space!
0:33:46 > 0:33:52And for a sort of property in a location like this,
0:33:52 > 0:33:54the garden - perfection!
0:33:56 > 0:33:59# This could be a perfect place
0:34:04 > 0:34:07# This could be a perfect place. #
0:34:08 > 0:34:11Back inside, there are two more floors to explore.
0:34:11 > 0:34:14First, the upper ground floor.
0:34:17 > 0:34:20So, upstairs and the first thing, I'm delighted to say,
0:34:20 > 0:34:23finally, we get a bit of head height
0:34:23 > 0:34:27and also some hints to the house's Georgian past.
0:34:27 > 0:34:31This staircase here, classic Georgian design.
0:34:31 > 0:34:34And space starts to get really exciting.
0:34:34 > 0:34:36You've got a big front bedroom there.
0:34:36 > 0:34:40That actually, believe it or not, is the original front door
0:34:40 > 0:34:43and the original front doors themselves are here.
0:34:43 > 0:34:46I'm sure listing people would want you to put that kind of thing back
0:34:46 > 0:34:50to recreate the grand entrance this place once had.
0:34:50 > 0:34:53Both these rooms are being used as bedrooms
0:34:53 > 0:34:55but would have been impressive reception rooms
0:34:55 > 0:34:57when the house was built.
0:34:57 > 0:35:00On the top floor of this three-storey building
0:35:00 > 0:35:04there are two bedrooms - one at the front and the other at the back.
0:35:04 > 0:35:06Both are packed with period details,
0:35:06 > 0:35:10although lurking under dingy decor and hardboard.
0:35:10 > 0:35:14Squeezed in between them is the only bathroom, so where is the loo?
0:35:14 > 0:35:17Well, that's back down on the lower ground floor.
0:35:17 > 0:35:21It's pretty obvious that a major reconfiguration is needed
0:35:21 > 0:35:24but the sloping floors and bulging ceiling
0:35:24 > 0:35:26will undoubtedly be more pressing.
0:35:26 > 0:35:30Even if it was bought for anything like the guide price £330,000,
0:35:30 > 0:35:34in a listed building renovation, costs can quickly spiral.
0:35:37 > 0:35:41Well, there are clearly some structural issues with this place
0:35:41 > 0:35:44but you know what? Allow yourself a decent enough budget
0:35:44 > 0:35:46and you can sort out any problems there may be.
0:35:46 > 0:35:50And what you would end up with is a pretty fantastic house
0:35:50 > 0:35:52in, I think, a lovely location.
0:35:53 > 0:35:57Can't go wrong. Let's see who agreed when it went under the hammer.
0:35:59 > 0:36:01Move on now to lot 65.
0:36:01 > 0:36:04Who would like to give me a start on this?
0:36:04 > 0:36:07350 anywhere? How much?
0:36:07 > 0:36:10- 330.- OK. 330, down here.
0:36:10 > 0:36:12335 anywhere? Thank you.
0:36:12 > 0:36:14335. 340.
0:36:14 > 0:36:17345. 350. Yes. 355.
0:36:17 > 0:36:19360. 365.
0:36:19 > 0:36:22370. 375.
0:36:22 > 0:36:25380, sir? 385.
0:36:25 > 0:36:28390. It's against the gentleman in the middle.
0:36:28 > 0:36:32Bids at £391,000.
0:36:32 > 0:36:38Anybody else? 392, back in. 393. 394, more competition. 395.
0:36:39 > 0:36:41396. 397.
0:36:43 > 0:36:47No? 396 for the first... 397, back in the room.
0:36:47 > 0:36:50398. Where is he? 398.
0:36:50 > 0:36:52399. 400,000, sir?
0:36:54 > 0:36:58401. 402. 403.
0:36:58 > 0:37:02404. 405. No?
0:37:02 > 0:37:06404 for the first, 404 for the second,
0:37:06 > 0:37:09404 for the third and final time. All done?
0:37:09 > 0:37:12- GAVEL BANGS - Sold. 404. Well bid.
0:37:12 > 0:37:17That hard-won bid of 404,000, 74,000 over the guide price,
0:37:17 > 0:37:21was made by restaurateur and caterer Charles
0:37:21 > 0:37:25and his wife Tima, a hotel reception manager.
0:37:25 > 0:37:27They are looking forward to their first baby's arrival
0:37:27 > 0:37:30and are currently renting in Notting Hill,
0:37:30 > 0:37:33so this will be a new home for their new family.
0:37:33 > 0:37:35I caught up with them at the property.
0:37:35 > 0:37:39Charles, Tima. Lovely to meet you both. Congratulations.
0:37:39 > 0:37:42- Thank you very much.- Tell me why you wanted to buy this house?
0:37:42 > 0:37:44When I saw a picture of a lake...
0:37:45 > 0:37:49..I thought, "That can't be right!" Because I knew the area.
0:37:49 > 0:37:53We drove down here and I just thought it's astounding.
0:37:53 > 0:37:56Got a lake outside the front and parkland down the side and the back.
0:37:56 > 0:37:59Why were you so passionate about buying it?
0:37:59 > 0:38:01Because it's our first home.
0:38:01 > 0:38:04And it's really hard to find something like this in London.
0:38:04 > 0:38:07I mean, there's quite a bit of...
0:38:07 > 0:38:10What shall we say... slope in the floor.
0:38:10 > 0:38:13- Yes. Yes.- Not a problem?- Well, no.
0:38:13 > 0:38:16If there was a problem there would be great big cracks up the wall,
0:38:16 > 0:38:18wouldn't there?
0:38:18 > 0:38:21Charles may seem blase about the bowed ceilings
0:38:21 > 0:38:25but this is not the first period property he's renovated
0:38:25 > 0:38:28and he's built up good contacts for restoration work.
0:38:28 > 0:38:31So, tell me what you're going to do to sort it out?
0:38:31 > 0:38:36We haven't quite made up our minds how to use the rooms.
0:38:36 > 0:38:38Being a caterer, restaurateur,
0:38:38 > 0:38:40the kitchen's the centre of the universe.
0:38:40 > 0:38:44I'd like to spill out from the kitchen into the garden.
0:38:44 > 0:38:47So that requires permission to open the window,
0:38:47 > 0:38:50which we may or may not get.
0:38:50 > 0:38:53And then do we have this as a reception room?
0:38:53 > 0:38:55Do we have an extra bedroom downstairs?
0:38:55 > 0:38:58Where's your main bathroom going to be, then?
0:38:58 > 0:39:00There will be... We don't know yet.
0:39:00 > 0:39:04Sometimes you can have too much choice.
0:39:04 > 0:39:08I do hope they get the layout right when they finally decide on one.
0:39:09 > 0:39:12What will influence what you do, Tima?
0:39:13 > 0:39:16Well, the amount of people that are going to live here!
0:39:17 > 0:39:21- I'm not sure what she means by that! - THEY LAUGH
0:39:21 > 0:39:25I think, Charles, how big your family is going to get!
0:39:26 > 0:39:28A four-bed might be a good plan.
0:39:28 > 0:39:32He was hoping £100,000 and six months would do it
0:39:32 > 0:39:35but I felt there might be an issue with that schedule.
0:39:37 > 0:39:42There is also one small thing - you are actually having a baby!
0:39:42 > 0:39:45Which might kind of divert attention for a little while, perhaps?
0:39:45 > 0:39:47- Perhaps.- Perhaps.
0:39:49 > 0:39:5212 months later, when we first return to see it,
0:39:52 > 0:39:56the house had undergone a remarkable transformation.
0:39:59 > 0:40:01The scaffolding was still outside
0:40:01 > 0:40:05but it was now most definitely a superb family home.
0:40:17 > 0:40:20Charles and Tima's daughter, Valentina,
0:40:20 > 0:40:22was already nine months old.
0:40:22 > 0:40:26Being both new parents and having a whole new house to fix up
0:40:26 > 0:40:30was quite a demanding combination, and this was no ordinary house.
0:40:32 > 0:40:36I've done buildings like this before, and from this period.
0:40:36 > 0:40:38With hindsight, I was too confident.
0:40:38 > 0:40:45This particular building is far more fragile than I'd appreciated.
0:40:45 > 0:40:49Although plenty of the problems were visible when they bought it,
0:40:49 > 0:40:52they soon discovered the drains needed replacing,
0:40:52 > 0:40:54which only added to the cost.
0:40:54 > 0:40:57Don't forget, this house is Grade II listed,
0:40:57 > 0:41:00which added a whole new dimension to the renovation.
0:41:02 > 0:41:08If 75% of the original exists, you must restore it.
0:41:08 > 0:41:11It was time, it was money, it was frustration.
0:41:14 > 0:41:17The care and attention to period detail might have taken more time
0:41:17 > 0:41:19but the results were simply stunning.
0:41:21 > 0:41:24The top floor was now two beautiful bedrooms.
0:41:24 > 0:41:28Valentina's looked out over the park at the front of house.
0:41:31 > 0:41:35Charles and Tima's bedroom is at the back, overlooking the garden.
0:41:37 > 0:41:40Between them is a brand-new family shower room.
0:41:42 > 0:41:44Really, every room has a special thing.
0:41:44 > 0:41:47Sometimes I think myself that - what's the best in this place?
0:41:47 > 0:41:51And every time I find every room has its own character.
0:41:51 > 0:41:55On the ground floor, the bedsit-style front room had been transformed
0:41:55 > 0:41:59into a glorious sitting-room that was full of character.
0:42:00 > 0:42:04At the back Charles decided to put his all-important kitchen
0:42:04 > 0:42:07on this level rather than in the basement.
0:42:10 > 0:42:14He'd waited seven months for planning consent to convert the basement
0:42:14 > 0:42:19that was now going to have a revised layout.
0:42:19 > 0:42:22It will be a bedroom at the front and a large bathroom at the back,
0:42:22 > 0:42:26a utility room and then you will go into what will be a day room,
0:42:26 > 0:42:32an office or another bedroom and that will open out into the garden.
0:42:32 > 0:42:35Charles's initial £100,000 budget had disappeared fast
0:42:35 > 0:42:38and was only set to increase.
0:42:38 > 0:42:43By the time the extension has been built, the budget will have doubled
0:42:43 > 0:42:47and I'm hoping that the value will show through. We shall see.
0:42:47 > 0:42:51And so will you if you stay tuned for our return,
0:42:51 > 0:42:54a full two years after they purchased it,
0:42:54 > 0:42:59to see how magnificent the completed house is now.
0:43:02 > 0:43:05It's been a while since we saw those properties.
0:43:05 > 0:43:07Have the new owners been busy bees?
0:43:07 > 0:43:10Or have they stopped dead in their tracks?
0:43:10 > 0:43:11Let's go back and find out.
0:43:13 > 0:43:16Blyth on the Northumberland coast is currently undergoing major
0:43:16 > 0:43:20regeneration, with lots of new residential properties,
0:43:20 > 0:43:22plus refurbishment of the seafront and harbour.
0:43:26 > 0:43:29Earlier in the programme the two flats in this mid-terrace were
0:43:29 > 0:43:35bought for £100,000 by local property developers Anthony
0:43:35 > 0:43:37and his wife Carol.
0:43:37 > 0:43:41The couple already own the neighbouring ground-floor flat.
0:43:41 > 0:43:44This experienced duo had a very clear idea of what needed
0:43:44 > 0:43:47to be done to the two new acquisitions.
0:43:50 > 0:43:53The downstairs flat, we will have the electrics upgraded.
0:43:53 > 0:43:56Then there was about 10 metres of rising damp to cure.
0:43:56 > 0:44:00Then there is the decorating, carpets, and the bigger flat,
0:44:00 > 0:44:04this one, again it's going to have the electrics done.
0:44:04 > 0:44:07We are going to convert one of the rooms into the master bedroom.
0:44:07 > 0:44:11- What about kitchens and bathrooms? - No. They are all in good repair.
0:44:11 > 0:44:14Nothing wrong with them whatsoever. Freshen them up and that's it.
0:44:14 > 0:44:20They had set a budget of £5,000, which included £1,000 as contingency.
0:44:21 > 0:44:24Five weeks later, we return to Blyth.
0:44:24 > 0:44:26The two flats are now finished
0:44:26 > 0:44:28and tenants are set to move in in a few weeks.
0:44:30 > 0:44:33The flats have been decorated and carpet laid.
0:44:36 > 0:44:40There are just some new kitchen appliances in the ground floor flat
0:44:40 > 0:44:42but that was about all it needed.
0:44:44 > 0:44:47The upstairs flat is on two floors.
0:44:47 > 0:44:50I'm delighted the landing on the lower level has retained
0:44:50 > 0:44:52this fabulous staircase.
0:44:58 > 0:45:02- And there is a new bedroom. - This wall is new.
0:45:02 > 0:45:04This used to be one huge room.
0:45:04 > 0:45:08We decided to reinstate the wall to make a huge master bedroom
0:45:08 > 0:45:11and we also had to reinstate the doorway into the bedroom
0:45:11 > 0:45:15and by doing that, it makes the property into a four-bedroom property,
0:45:15 > 0:45:18which is a better use of the space than what it currently had.
0:45:19 > 0:45:23On this floor, there is a new bedroom and the two smaller originals.
0:45:23 > 0:45:27Whilst up in the attic, that bedroom has been redecorated
0:45:27 > 0:45:30and the dormer windows restored.
0:45:30 > 0:45:33Anthony and Carol thought they would have to install
0:45:33 > 0:45:35a new damp-proof course on the ground floor,
0:45:35 > 0:45:38but just when they thought they were on top of everything,
0:45:38 > 0:45:40the unexpected happened.
0:45:40 > 0:45:43The big challenge, once the damp-proofing work was done,
0:45:43 > 0:45:47the skirting boards were taken up and the hardboard covering
0:45:47 > 0:45:50the floorboards, that's when we discovered there was woodworm.
0:45:50 > 0:45:54So half of the floor in the lounge downstairs had to be replaced.
0:45:54 > 0:45:57Half of the floor in one of the bedrooms had to be replaced
0:45:57 > 0:45:59and the rest of the woodwork had to be sprayed
0:45:59 > 0:46:03to make sure that was free of woodworm as well.
0:46:03 > 0:46:07And there was another cost they didn't see coming
0:46:07 > 0:46:09in the entrance to the first-floor kitchen.
0:46:11 > 0:46:13We replaced the doors.
0:46:13 > 0:46:17Some of the doors of the property, in some places,
0:46:17 > 0:46:22like here, there was a total height glass panel door
0:46:22 > 0:46:25that didn't contain safety glass.
0:46:25 > 0:46:27I probably would have changed that anyway
0:46:27 > 0:46:29but it was also a requirement of the mortgage company.
0:46:29 > 0:46:32It's peace of mind, really, to have a safety glass door
0:46:32 > 0:46:34because in a property of this size,
0:46:34 > 0:46:36there's probably going to be children
0:46:36 > 0:46:39and we want to make sure that everything is safe.
0:46:39 > 0:46:44No question about it. I'm always very concerned when I spot any glass.
0:46:44 > 0:46:47Do always check that it's safety glass.
0:46:47 > 0:46:51They'd set a budget of £5,000, which included £1,000 contingency.
0:46:51 > 0:46:55What effect did the unexpected woodworm have on the budget
0:46:55 > 0:46:59- and time scale? - The budget went up a little bit.
0:46:59 > 0:47:01Didn't really affect the timescale
0:47:01 > 0:47:05because we had plenty of time to renovate the property anyway.
0:47:05 > 0:47:10The budget ended up at £4,600, so with the £100,000
0:47:10 > 0:47:15they had paid at auction, that takes their total investment to £104,600.
0:47:15 > 0:47:19Separate leases have been drawn up for each flat
0:47:19 > 0:47:22and the couple have tenants lined up for them both.
0:47:23 > 0:47:26We invited two local estate agents along.
0:47:26 > 0:47:30What do they think of the finish and the potential for the two flats?
0:47:30 > 0:47:32First impressions of the property,
0:47:32 > 0:47:34it's been decorated to a high standard.
0:47:34 > 0:47:36Nice neutral colours throughout.
0:47:36 > 0:47:39This would fit into the local market very well.
0:47:39 > 0:47:42It's got a lot of space, a lot of contemporary living space.
0:47:42 > 0:47:44Obviously, extra bedrooms with a new wall
0:47:44 > 0:47:47being put up in the upper floor flat.
0:47:47 > 0:47:50What resale valuations could these flats achieve?
0:47:50 > 0:47:52Let's start with the ground-floor flat.
0:47:52 > 0:47:54For the ground-floor flat,
0:47:54 > 0:47:59we would look for a resale value of £65,000 to achieve around £60,000.
0:47:59 > 0:48:02I would say the ground floor
0:48:02 > 0:48:04to go on the market for a resale of £75,000
0:48:04 > 0:48:10to try and achieve between the £75,000 and the £70,000.
0:48:10 > 0:48:14We thought about £65,000. I think realistically that's its money.
0:48:14 > 0:48:16I don't think 75 would be achievable.
0:48:16 > 0:48:19And for the maisonette flat?
0:48:19 > 0:48:22For the first floor flat, we would look to market
0:48:22 > 0:48:27the property at £89,950 to achieve around £85,000.
0:48:27 > 0:48:30I would consider marketing this property at around about
0:48:30 > 0:48:38the £95,000 to try and achieve between the £95,000 and £85,000.
0:48:38 > 0:48:4385 and 95 for the maisonette, that's really good.
0:48:43 > 0:48:46- Higher than I thought. - Higher than I thought, too.
0:48:46 > 0:48:52If the ground floor flat were to sell for the £65,000 that Anthony suggests
0:48:52 > 0:48:56and the upper flat were to achieve the higher figure
0:48:56 > 0:49:02of £95,000, there would be a profit of £55,400 before tax and expenses.
0:49:02 > 0:49:06The estate agents thought the ground floor flat would rent out
0:49:06 > 0:49:10for between £400 and £425 per calendar month.
0:49:10 > 0:49:15- 400, 425 is what we thought. - We're getting 425.- We got 425, yes.
0:49:15 > 0:49:19The first-floor flat I would look to rent for £450
0:49:19 > 0:49:21to £475 per calendar month.
0:49:21 > 0:49:27The upper floor flat I would try for the £500 per calendar month.
0:49:27 > 0:49:29Again, we are at the top end with 495.
0:49:29 > 0:49:32£495 is what it's being rented at.
0:49:32 > 0:49:34Which is what we thought would be the market rate.
0:49:34 > 0:49:36Once both flats are let,
0:49:36 > 0:49:40they should generate a yield of around 10.5%.
0:49:40 > 0:49:42That is an impressive return
0:49:42 > 0:49:45and another property to add to the couple's growing portfolio.
0:49:45 > 0:49:47They are highly experienced,
0:49:47 > 0:49:51so what advice would they give to a rookie developer?
0:49:51 > 0:49:53There is always something that will crop up,
0:49:53 > 0:49:56especially on an older property. The woodworm came up on this one.
0:49:56 > 0:49:59It wasn't a major job, but it still had a cost to it
0:49:59 > 0:50:02which stopped us doing a few other little things.
0:50:02 > 0:50:06But if anyone wants to do it, especially on older property,
0:50:06 > 0:50:09just be aware and have a contingency plan.
0:50:13 > 0:50:16We return now to Camberwell in south-east London,
0:50:16 > 0:50:19to a property that overlooked this park and lake
0:50:19 > 0:50:23which we first showed you back in 2011.
0:50:23 > 0:50:29This grand Georgian semi was bought for £404,000 by restaurateur
0:50:29 > 0:50:34and caterer Charles and his wife Tima, a hotel reception manager.
0:50:34 > 0:50:38The couple were expecting their first child and Tima thought
0:50:38 > 0:50:42this three-storey property would be an ideal place to live.
0:50:42 > 0:50:45Why were you so passionate about buying it?
0:50:45 > 0:50:47Because it is our first home
0:50:47 > 0:50:50and it's really hard to find something like this in London.
0:50:50 > 0:50:52Tell me what you are going to do to sort it out?
0:50:52 > 0:50:57We haven't quite made up our minds how to use the rooms.
0:50:57 > 0:50:59Being a caterer, restaurateur,
0:50:59 > 0:51:01the kitchen is the centre of the universe.
0:51:01 > 0:51:05I would like to spill out from the kitchen into the garden.
0:51:05 > 0:51:09They had set a budget of £100,000 and when we first returned
0:51:09 > 0:51:14one year later, their baby Valentina was already nine months old
0:51:14 > 0:51:17and the top two floors had been beautifully restored.
0:51:22 > 0:51:26It had taken seven months to get planning consent
0:51:26 > 0:51:28for the basement conversion.
0:51:28 > 0:51:32Charles had decided to put the kitchen on the first floor
0:51:32 > 0:51:37rather than in the basement and he'd also revised plans for down there.
0:51:38 > 0:51:41It will be a bedroom at the front, a large bathroom at the back,
0:51:41 > 0:51:46a utility room and then you will go into what will be a day room,
0:51:46 > 0:51:51an office or another bedroom and that will open out into the garden.
0:51:51 > 0:51:53It sounded fantastic
0:51:53 > 0:51:58but Charles's initial £100,000 budget was set to double.
0:51:58 > 0:52:02Now, nine and-a-half months later, the rear extension is built.
0:52:02 > 0:52:04The basement now provides
0:52:04 > 0:52:09all the extra accommodation the family require.
0:52:09 > 0:52:12# It's amazing
0:52:12 > 0:52:17# It's amazing All that you can do... #
0:52:18 > 0:52:21Amazing indeed.
0:52:21 > 0:52:24The lack of head height in the basement has been resolved.
0:52:27 > 0:52:30# Now it's up to you. #
0:52:30 > 0:52:33The new bathroom is elegant
0:52:33 > 0:52:37and captures a period feel just right for the house.
0:52:37 > 0:52:42The changes we've made have been mainly concentrated downstairs.
0:52:42 > 0:52:47We have tweaked upstairs but mainly downstairs and outside.
0:52:47 > 0:52:50We have demolished the old extension,
0:52:50 > 0:52:53apart from the original front wall,
0:52:53 > 0:52:55and built a new extension on the back of it.
0:52:55 > 0:53:00We now have a serviceable bedroom and a nice bathroom.
0:53:00 > 0:53:05We have a utility room and a second reception room,
0:53:05 > 0:53:08which is...garden room is what we call it.
0:53:08 > 0:53:11It is a narrow room that runs from the door that once
0:53:11 > 0:53:16led into the basement right the way round into the garden.
0:53:16 > 0:53:20It could be configured as a study or even a fourth bedroom.
0:53:20 > 0:53:22Restaurateur Charles has even got a wine store.
0:53:22 > 0:53:25Just as well, because there is now plenty to toast
0:53:25 > 0:53:27throughout the house.
0:53:28 > 0:53:31A garden of this size in London is a real bonus.
0:53:31 > 0:53:34It looks like Valentina is enjoying it
0:53:34 > 0:53:37and Charles was keen for his kitchen on the first floor
0:53:37 > 0:53:40to benefit from the outside space as well.
0:53:42 > 0:53:45We have put a balcony off the kitchen,
0:53:45 > 0:53:48so you now step out from the kitchen
0:53:48 > 0:53:55into the garden and that means that activity is all on this floor.
0:53:55 > 0:53:59It means that from the front door on this floor
0:53:59 > 0:54:01there is the living room and the kitchen.
0:54:02 > 0:54:04While upstairs on the top floor
0:54:04 > 0:54:06are the two family bedrooms and the bathroom.
0:54:08 > 0:54:10The top two floors haven't dramatically changed
0:54:10 > 0:54:13since our last visit and they didn't need to.
0:54:13 > 0:54:17However, Charles has added this impressive new fireplace
0:54:17 > 0:54:21in the lounge which, like the house, he bought at auction.
0:54:21 > 0:54:25Restoring a Grade II listed property of this size can't have been cheap
0:54:25 > 0:54:29and Charles's initial budget of £100,000 had already doubled.
0:54:29 > 0:54:33So what's the final figure looking set to be?
0:54:33 > 0:54:36We were going to approach 200,000, which we did,
0:54:36 > 0:54:39and I managed to spend some more.
0:54:39 > 0:54:42We are looking at about £250,000 now.
0:54:44 > 0:54:47With the purchase price of 404,000,
0:54:47 > 0:54:51that takes the total investment here to £654,000.
0:54:53 > 0:54:55Apart from the extension and patio area,
0:54:55 > 0:54:59there is now a new driveway and a specialist blacksmith
0:54:59 > 0:55:03has made railings true to the period of the property.
0:55:03 > 0:55:06Charles discovered that buried in the garden
0:55:06 > 0:55:08there were lots of original bricks
0:55:08 > 0:55:10from when the house was damaged in the war.
0:55:10 > 0:55:13His builders used them in the extension.
0:55:16 > 0:55:21What did two local property experts make of this lovely restoration?
0:55:21 > 0:55:24The extension adds great value to this property.
0:55:24 > 0:55:27It provides the extra rooms and the extra space.
0:55:27 > 0:55:30It could be used as a three-bedroomed house with a study
0:55:30 > 0:55:33leading on to the garden or as a four-bedroom with a study
0:55:33 > 0:55:35now turned into a bedroom.
0:55:35 > 0:55:37The layout and the size of the property is amazing.
0:55:37 > 0:55:41Very, very big property. The way that it's a 3/4-bedroomed house,
0:55:41 > 0:55:43ideal for a family.
0:55:43 > 0:55:45I think the changes have been great.
0:55:45 > 0:55:48The features they've put on help restore it to its former glory.
0:55:48 > 0:55:51For this type of property, character features are essential.
0:55:51 > 0:55:53It's what everyone looks for in this type of house.
0:55:53 > 0:55:57I wonder if there's much rental demand for such a magnificent house.
0:55:57 > 0:56:00Just how much income could it generate if let?
0:56:00 > 0:56:04This property could rent out for around £2,000 per calendar month.
0:56:04 > 0:56:08This property could rent for £3,500 per calendar month.
0:56:08 > 0:56:13A potential yield of between 3.5% and 6.5%.
0:56:13 > 0:56:16The lower figure surprises me.
0:56:16 > 0:56:19Because, obviously, we had to rent before we moved in and we were
0:56:19 > 0:56:23paying that for something not much bigger than the basement.
0:56:23 > 0:56:26The higher figure is OK, not that we are renting, of course.
0:56:26 > 0:56:32Could the property be worth over the £654,000 that Charles has invested?
0:56:33 > 0:56:36This property could expect to achieve
0:56:36 > 0:56:39anything around £800,000 to £850,000.
0:56:39 > 0:56:42This property could resell for £950,000.
0:56:42 > 0:56:49So a potential profit of £146,000 to £296,000
0:56:49 > 0:56:53before tax and expenses. Is Charles pleased with that?
0:56:53 > 0:56:55I would have been disappointed
0:56:55 > 0:56:57if they'd said much different from 800 to 850.
0:56:57 > 0:57:00I thought that was a reasonable value.
0:57:00 > 0:57:02If we got 950, I'd be absolutely delighted.
0:57:02 > 0:57:05That extra money spent has been worthwhile.
0:57:06 > 0:57:08I'm really blown away by the look
0:57:08 > 0:57:11Charles has created with this restoration.
0:57:11 > 0:57:13It's never easy with a listed property
0:57:13 > 0:57:17but he has pulled it off absolutely magnificently whilst retaining
0:57:17 > 0:57:20that all-important homely feel.
0:57:20 > 0:57:26It was a key driver in the whole thing, to create a home.
0:57:26 > 0:57:27And I think we've done that.
0:57:27 > 0:57:31And the way Valentina responds to the lake
0:57:31 > 0:57:33and the park and the garden is great.
0:57:35 > 0:57:37We tried to be honest to the period
0:57:37 > 0:57:40and I hope people feel we've succeeded in that.
0:57:40 > 0:57:43It is a really nice cottagey feel.
0:57:43 > 0:57:47You move very comfortably within the floors, within the rooms,
0:57:47 > 0:57:51and that is the sign of a good building, for me.
0:57:55 > 0:57:58Join us next time for more amazing auction highs and lows.
0:57:58 > 0:58:02Will the buyers make huge profits or a loss?
0:58:02 > 0:58:08- Will you be jealous or relieved you didn't bother?- See- you then. Goodbye.