0:00:02 > 0:00:05Have you ever considered buying a property at auction
0:00:05 > 0:00:07but just don't know where to start?
0:00:07 > 0:00:10Well, perhaps we can show you some tricks of the trade.
0:00:10 > 0:00:12Join us now, as we follow some brave buyers,
0:00:12 > 0:00:14who bought their homes under the hammer.
0:00:39 > 0:00:42Auction houses aren't intimidating places -
0:00:42 > 0:00:43anyone can buy there.
0:00:43 > 0:00:47All you need is the money, but make sure it's ready.
0:00:47 > 0:00:51Today, we meet three intrepid buyers, who've taken the plunge.
0:00:51 > 0:00:55Will they sink or swim? Well, here's what they bought.
0:00:56 > 0:00:58In Canterbury, Kent,
0:00:58 > 0:01:00this teeny-weeny one-bedroomed house
0:01:00 > 0:01:04has a problem that might spiral out of control.
0:01:07 > 0:01:09In Chaddesden, Derby, with this three-bed semi,
0:01:09 > 0:01:11you have to take the rough with the smooth,
0:01:11 > 0:01:14as it's more Artex than artistic.
0:01:16 > 0:01:18In Rotherham, South Yorkshire,
0:01:18 > 0:01:21yet another British pub faces last orders.
0:01:21 > 0:01:24Can it be rescued or has its last pint been pulled?
0:01:27 > 0:01:29These properties were all bought at auction.
0:01:29 > 0:01:30One more?
0:01:30 > 0:01:32We find out who bought them and for how much...
0:01:32 > 0:01:34- 81... - ..when they went under the hammer.
0:01:34 > 0:01:36Sold, sir.
0:01:38 > 0:01:40For such a small city,
0:01:40 > 0:01:44Canterbury in Kent has masses of history oozing through its walls.
0:01:44 > 0:01:46Dominated by the oldest cathedral in England,
0:01:46 > 0:01:50the well-preserved medieval centre is a tourist's heaven
0:01:50 > 0:01:53and everywhere you look, there's an ancient building
0:01:53 > 0:01:55looking right back.
0:01:55 > 0:01:57# You want history... #
0:01:57 > 0:02:01Parts of the town centre are designated World Heritage Sites
0:02:01 > 0:02:03and the history doesn't end there.
0:02:03 > 0:02:06Playwright Christopher Marlowe hailed from these parts
0:02:06 > 0:02:09and some theorists contend he wrote his later plays
0:02:09 > 0:02:12under the pen name of William Shakespeare.
0:02:12 > 0:02:14# It's a mystery... #
0:02:16 > 0:02:18And the property I'm here to see
0:02:18 > 0:02:21has a few mysteries of its own that need solving.
0:02:22 > 0:02:23A minute's walk from the centre
0:02:23 > 0:02:27and we're in this busy, but charming, mid-19th century street.
0:02:27 > 0:02:31It shouldn't surprise you that we're in a conservation area here
0:02:31 > 0:02:33and much of this street is Grade II listed,
0:02:33 > 0:02:36as is the property we're here to see.
0:02:36 > 0:02:41It's this teeny-weeny one-bed house, squeezed into this corner.
0:02:41 > 0:02:43A little courtyard area
0:02:43 > 0:02:47and it had a guide price of £75,000-£80,000.
0:02:47 > 0:02:48Think small, everyone.
0:02:50 > 0:02:53As a Grade II listed building, it has a puzzling history
0:02:53 > 0:02:56which I'd love to get to the bottom of.
0:02:56 > 0:02:59I don't know if it was once part of the shop to one side
0:02:59 > 0:03:01or the coach house on the other.
0:03:01 > 0:03:05It's as intriguing as it is teeny.
0:03:05 > 0:03:07# Hey, darling
0:03:07 > 0:03:08# Squeeze me in... #
0:03:11 > 0:03:14It's not as tiny inside as you might think.
0:03:14 > 0:03:18Uh-oh...the staircase has landed!
0:03:18 > 0:03:21I wasn't expecting to see that.
0:03:21 > 0:03:24It's as if somebody has literally - uh-uh! -
0:03:24 > 0:03:26sawed a massive hole through here
0:03:26 > 0:03:29and just stuck a spiral staircase there.
0:03:29 > 0:03:31You can see where the original stairs would have been.
0:03:31 > 0:03:34A much better use of space, because here,
0:03:34 > 0:03:36the area's a little bit redundant.
0:03:36 > 0:03:39I don't think it goes with the character of the property.
0:03:39 > 0:03:42But this is fantastic - always love to see a wood-burning stove.
0:03:42 > 0:03:44Lovely little feature there.
0:03:44 > 0:03:48I think this is where the original kitchen would have been.
0:03:48 > 0:03:51Whoever bought this at auction probably would have paid in cash,
0:03:51 > 0:03:54because I know mortgage companies are not keen on lending
0:03:54 > 0:03:58if you don't have a kitchen in situ, but through here,
0:03:58 > 0:04:01a really pretty little conservatory, looking out onto the garden.
0:04:01 > 0:04:03It's got the makings of a great house -
0:04:03 > 0:04:06just a lot of work to do.
0:04:06 > 0:04:09# How many kinds of sweet flowers grow
0:04:09 > 0:04:12# In an English country garden? #
0:04:12 > 0:04:16The garden in the courtyard is delightful.
0:04:16 > 0:04:18However, while the pond and that cute little shed
0:04:18 > 0:04:21might have come straight out of the Canterbury Tales,
0:04:21 > 0:04:24perhaps the Brothers Grimm would be more appropriate
0:04:24 > 0:04:26for the guttering and window frames.
0:04:26 > 0:04:29But there are a couple of mysteries about the spiral staircase.
0:04:29 > 0:04:31What caused those cracks?
0:04:31 > 0:04:34Well, it would appear there are some structural issues.
0:04:34 > 0:04:36It will be well worth checking out
0:04:36 > 0:04:39if building regulations approval was obtained before this work,
0:04:39 > 0:04:40because if they weren't,
0:04:40 > 0:04:43the council could force you to put it all back.
0:04:43 > 0:04:46The other mystery, then, is how to negotiate them.
0:04:49 > 0:04:52You certainly wouldn't expect to pass anybody on these stairs.
0:04:52 > 0:04:54Incredibly tight.
0:04:54 > 0:04:57Now, once up here, it's a really good space,
0:04:57 > 0:04:59apart from the fact
0:04:59 > 0:05:02you've got a whacking, great big hole over there,
0:05:02 > 0:05:04which I think, now I'm up here,
0:05:04 > 0:05:07I'd like to reinstate the stairs along the back wall,
0:05:07 > 0:05:09cover that up, and then you've got a really good area.
0:05:09 > 0:05:12Enough room for a big bed, some bedroom furniture.
0:05:12 > 0:05:15You've got a lot of windows, as well,
0:05:15 > 0:05:18letting in lots of light - a brilliant space.
0:05:18 > 0:05:20I don't think it's going to be big enough
0:05:20 > 0:05:22to convert into two separate rooms.
0:05:22 > 0:05:23I think I'd leave it as it is.
0:05:23 > 0:05:26You've got a nice bathroom here, which is fantastic.
0:05:26 > 0:05:28You know, what you have is a great little house
0:05:28 > 0:05:30a stone's throw from the city centre -
0:05:30 > 0:05:32ideal for a couple.
0:05:34 > 0:05:35This could make a bijoux pad
0:05:35 > 0:05:38for anyone looking for easy access to local amenities
0:05:38 > 0:05:41and there's a lovely park, if that courtyard proved too small.
0:05:41 > 0:05:47# Madame, I will give you the keys of Canterbury... #
0:05:47 > 0:05:49The key to making more room inside
0:05:49 > 0:05:51might be by incorporating the conservatory
0:05:51 > 0:05:54into the living space, but you would need permission.
0:05:54 > 0:05:57All in all, though, I think this is a great find.
0:05:59 > 0:06:01We asked a local estate agent along
0:06:01 > 0:06:02to see if he agreed.
0:06:02 > 0:06:05This is a nice part of Canterbury. You're right along the line
0:06:05 > 0:06:08of the old city wall, so you're very close to everything
0:06:08 > 0:06:11and all the lovely parts of the city
0:06:11 > 0:06:13with a nice garden behind, as well.
0:06:13 > 0:06:15This is an interesting property.
0:06:15 > 0:06:18It probably was a store or ancillary to the house of the front,
0:06:18 > 0:06:20but now been made into a dwelling.
0:06:20 > 0:06:22It's not in a brilliant state of repair,
0:06:22 > 0:06:24so it needs quite a lot of money spent on it,
0:06:24 > 0:06:25to bring it up to standard.
0:06:25 > 0:06:27But it's very quaint.
0:06:27 > 0:06:29It's nice that it's set back from the road -
0:06:29 > 0:06:31it's got a lot of potential.
0:06:31 > 0:06:34Unlike me, the agent thinks there is mileage
0:06:34 > 0:06:36in turning this into a two-bedroom house.
0:06:36 > 0:06:38So, how would the figures stack up?
0:06:38 > 0:06:40Once renovated, as a one-bed,
0:06:40 > 0:06:43it's probably worth £140,000 to £150,000.
0:06:43 > 0:06:46Once renovated as a two-bed,
0:06:46 > 0:06:49it's probably worth £160,000 to £170,000.
0:06:49 > 0:06:53And how about the rental value of this property?
0:06:53 > 0:06:56On a rental basis, if it was let as a one-bed,
0:06:56 > 0:07:00the rent here would be about £650pcm.
0:07:00 > 0:07:04As a two-bed, £750pcm.
0:07:06 > 0:07:07A quirky, interesting little lot,
0:07:07 > 0:07:10in a lovely city with tons of charm -
0:07:10 > 0:07:12not without its issues,
0:07:12 > 0:07:15but you'd forgive a lot for this location.
0:07:15 > 0:07:17Let's see who wanted it at the auction.
0:07:20 > 0:07:23Got a guide of 75 to 80.
0:07:23 > 0:07:25Start me at 75 and see where we go. 75.
0:07:25 > 0:07:28Thank you, £75,000, the bid.
0:07:28 > 0:07:3177, I'm bid. And 79.
0:07:31 > 0:07:3379, and 81, 81.
0:07:33 > 0:07:3682, I have, and 84. 84, and 86.
0:07:36 > 0:07:39And 88. And 90.
0:07:39 > 0:07:4192. 94.
0:07:41 > 0:07:4396, madam. 96.
0:07:43 > 0:07:4498.
0:07:44 > 0:07:46100. 102.
0:07:46 > 0:07:49104. 106.
0:07:49 > 0:07:51106, gentleman's bid.
0:07:51 > 0:07:54At 106,000, then, for the first time.
0:07:54 > 0:07:58106,000 for the second time.
0:07:58 > 0:08:03106,000 for the third and final time - all done?
0:08:03 > 0:08:04Sold at 106,000.
0:08:04 > 0:08:08That successful bid of £106,000
0:08:08 > 0:08:11was placed by property developer Gary.
0:08:12 > 0:08:15Gary deals in property in the care home sector
0:08:15 > 0:08:17and purchased the house to help his son Chris
0:08:17 > 0:08:19develop his own portfolio.
0:08:19 > 0:08:22I met them both back at the house to find out more.
0:08:22 > 0:08:26Guys, congratulations. Good news, you got this on auction day.
0:08:26 > 0:08:28Why did you want to buy this?
0:08:28 > 0:08:33A while ago, Chris was training to be a plumber, doing his CORGI.
0:08:33 > 0:08:35Unfortunately, he had quite a serious accident
0:08:35 > 0:08:40and that left him without the sense of taste and smell,
0:08:40 > 0:08:41so he couldn't be...
0:08:41 > 0:08:43Well, he couldn't smell gas, etc.
0:08:43 > 0:08:45So that put paid to that career
0:08:45 > 0:08:48and he's been doing a couple of things since then.
0:08:48 > 0:08:50But this was a joint decision,
0:08:50 > 0:08:52that he would go into property developing
0:08:52 > 0:08:55and I thought I would give him a helping hand.
0:08:55 > 0:08:58How's it been for you, having such a life-changing thing happen to you
0:08:58 > 0:09:01and now also, you've got to change career?
0:09:01 > 0:09:03There's been... a lot going on, obviously,
0:09:03 > 0:09:07but, like I say, from one thing to another.
0:09:07 > 0:09:10Hopefully, this'll be what I want to do now and...stick to this.
0:09:10 > 0:09:13- Onwards and upwards for you. - Exactly.
0:09:13 > 0:09:16What a blow for Chris and very bad luck
0:09:16 > 0:09:18that his chosen career relied on the senses he lost.
0:09:18 > 0:09:22But sometimes opportunities appear from the darkest moments
0:09:22 > 0:09:26and this project with his father is a new beginning.
0:09:26 > 0:09:27So when you saw it for the first time,
0:09:27 > 0:09:29what did you think?
0:09:29 > 0:09:32Uh...bit of a job on our hands, really, but like I say,
0:09:32 > 0:09:34when it's finished, it'll be fantastic.
0:09:34 > 0:09:35Gary, why this property?
0:09:35 > 0:09:38Well, we know the location.
0:09:38 > 0:09:40Uh, it's...
0:09:40 > 0:09:42There weren't that many within the city wall -
0:09:42 > 0:09:45certainly not the type we were looking for Chris,
0:09:45 > 0:09:50a fixer-upper, one that would help him get his hands dirty.
0:09:50 > 0:09:54It may appear that it's, you know, quite a bit more
0:09:54 > 0:09:58than an initial or a first project might be, but we think -
0:09:58 > 0:10:02and our friends think - it's an easy, easy one.
0:10:02 > 0:10:04Your friend think it's an easy one? What do you think?
0:10:04 > 0:10:06More importantly, what do YOU think?
0:10:06 > 0:10:08We've got experienced builders who think it's easy,
0:10:08 > 0:10:10but I walk in and I don't think so, at all.
0:10:10 > 0:10:13No, I don't think it'll be easy. There's a lot to do.
0:10:13 > 0:10:15A big learning curve, but like I say,
0:10:15 > 0:10:17you've got to start somewhere.
0:10:17 > 0:10:20I need to ask this question - I want a "yes" or a "no".
0:10:20 > 0:10:23Are you going to get rid of that spiral staircase?
0:10:24 > 0:10:26Mm...yes.
0:10:26 > 0:10:27Is the right answer!
0:10:27 > 0:10:30Look, it's fine, I don't mind it, it doesn't really offend me,
0:10:30 > 0:10:32but it's really tight.
0:10:32 > 0:10:34If you get a few drinks and come down it, it'd be lethal.
0:10:34 > 0:10:37It's not fun, especially with that gaping big hole at the end.
0:10:37 > 0:10:39Exactly.
0:10:39 > 0:10:41What are your intentions with this place?
0:10:41 > 0:10:45Currently, it's just a big room down here and a big room up there.
0:10:45 > 0:10:48How are you going to carve up the space and use it?
0:10:48 > 0:10:51Um...yeah, we would like to get two bedrooms out of it.
0:10:51 > 0:10:52Obviously, if I do rent it out,
0:10:52 > 0:10:56I can get two people in instead of one.
0:10:56 > 0:10:58The way we'd do it is obviously alter the stairway,
0:10:58 > 0:11:01whether we bring it further over,
0:11:01 > 0:11:03so we can have a small bedroom over the back
0:11:03 > 0:11:05and just have the master bedroom upstairs.
0:11:05 > 0:11:09Um...that is the plan we've got in mind, anyway.
0:11:09 > 0:11:12But the wall behind me, which goes on to the conservatory,
0:11:12 > 0:11:13we're thinking of taking it down
0:11:13 > 0:11:18so we can open up the lounge and the dining area a bit more.
0:11:18 > 0:11:19- That would be lovely.- Yeah.
0:11:19 > 0:11:21If you were to convert it into a two-bedder,
0:11:21 > 0:11:23where would you out the bathroom?
0:11:23 > 0:11:25At the moment, it's almost like an en-suite.
0:11:25 > 0:11:30Yeah, but the plans we've got would be as it the stairs would come up
0:11:30 > 0:11:33above our heads and then you'd have a hallway at the top.
0:11:33 > 0:11:35The bedroom would be down that end,
0:11:35 > 0:11:37the bathroom would stay where it was.
0:11:37 > 0:11:38How about renting it out to a couple
0:11:38 > 0:11:40and having just one really nice bedroom upstairs?
0:11:40 > 0:11:43I think you're just going to get two really small bedrooms
0:11:43 > 0:11:46and probably damage the value of a property like this.
0:11:46 > 0:11:48Yeah, that could be another option, yeah.
0:11:48 > 0:11:50I think you're right, there.
0:11:50 > 0:11:53# I think it's gonna work out fine... #
0:11:53 > 0:11:55Either option could work out fine,
0:11:55 > 0:11:57but I think this little listed building
0:11:57 > 0:12:00would lose some of its quirky charm
0:12:00 > 0:12:03if the upstairs was split into two tiny bedrooms.
0:12:03 > 0:12:06It could create more profit or it could put people off.
0:12:06 > 0:12:09The next stage for the father-and-son team
0:12:09 > 0:12:13is to get the survey done, to determine what needs doing.
0:12:13 > 0:12:15What is the budget for the work here?
0:12:15 > 0:12:18Well, Chris and I have a difference of opinion there.
0:12:18 > 0:12:24Um...uh...me having some experience and Chris having not quite so much,
0:12:24 > 0:12:30we're ranging between £15,000 and £25,000 to complete the work.
0:12:30 > 0:12:34Um, depending how much he puts in to the project himself,
0:12:34 > 0:12:37we'll hopefully be somewhere in between.
0:12:37 > 0:12:41We've got that budget, but it's difficult when it's listed
0:12:41 > 0:12:46and if there are any prerequisites and requirements they come up with
0:12:46 > 0:12:49that we're not sure about, we weren't aware of,
0:12:49 > 0:12:51then it may impact on the budget,
0:12:51 > 0:12:53but he's pretty good at working out the yield
0:12:53 > 0:12:56all the sundries that'll be involved. He's pretty good at that.
0:12:56 > 0:12:59Chris, how long do you think a project like this will take?
0:12:59 > 0:13:01- Um...I'd say about eight weeks. - Eight weeks.- Hopefully.
0:13:01 > 0:13:05- £25,000 and eight weeks? - I've got a lot of tradesmen.
0:13:05 > 0:13:07- And lots of tradesmen - a lot of friends?- Yeah.
0:13:07 > 0:13:09Are you excited to get stuck into something like this?
0:13:09 > 0:13:12- Are you ready for this challenge? - Definitely, yeah.
0:13:12 > 0:13:15Will you make it so fantastic, you're going to want to stay?
0:13:15 > 0:13:18It's going to look lovely. I will be jealous if I do let it out.
0:13:18 > 0:13:19They're going to be very lucky people.
0:13:19 > 0:13:22Really nice meeting you today. Good luck with this project.
0:13:22 > 0:13:24Can't wait to see what you do here.
0:13:24 > 0:13:26- Thank you very much. - Gary, lovely to see you.
0:13:26 > 0:13:28- Chris, thanks a lot. - Thank you very much, cheers.
0:13:28 > 0:13:31I think this is a really interesting little house
0:13:31 > 0:13:34and a great first project for Chris.
0:13:34 > 0:13:37The big question is, one bedroom or two?
0:13:37 > 0:13:40You can see what they decide later on in the show.
0:13:44 > 0:13:47And there are more big decisions to be made at the next property,
0:13:47 > 0:13:51here in Chaddesden, one of Derby's largest suburbs.
0:13:52 > 0:13:54The city is less than three miles away
0:13:54 > 0:13:58and it has a mix of private and social housing,
0:13:58 > 0:14:01built from the 1950s onwards.
0:14:01 > 0:14:05Well, I'm here in Chaddesden, to see one of these, kind of, properties
0:14:05 > 0:14:07that I really, really love.
0:14:07 > 0:14:08It's an ex-local authority.
0:14:08 > 0:14:12They're big, they're well-made and they're good value for money.
0:14:12 > 0:14:16Case in point - three bedrooms, substantial semi-detached,
0:14:16 > 0:14:18guide price of £58,000.
0:14:18 > 0:14:20Let's take a look.
0:14:20 > 0:14:22# I hear you knocking... #
0:14:22 > 0:14:23Well...
0:14:23 > 0:14:26I would...if I could get in.
0:14:26 > 0:14:28Let's try the side.
0:14:28 > 0:14:32Luckily for me, there is another way in, through the back door
0:14:32 > 0:14:34It's looking a bit more hopeful.
0:14:34 > 0:14:36But before I actually even get into the house,
0:14:36 > 0:14:38there is something that's worrying me.
0:14:38 > 0:14:41There's a few trees which are very, very close to the house.
0:14:41 > 0:14:42That's a laburnum
0:14:42 > 0:14:45and you can see, it must be about a metre away from the house?
0:14:45 > 0:14:47That's not good -
0:14:47 > 0:14:49it could be doing all sorts of damage to the foundations -
0:14:49 > 0:14:51judging by the state of this driveway,
0:14:51 > 0:14:53it's already pushing up the concrete here.
0:14:53 > 0:14:56There's another one at the back, a lilac and other trees.
0:14:56 > 0:14:57You know, I love trees,
0:14:57 > 0:15:00but when they're close to a house, it's bad news.
0:15:00 > 0:15:01Anyway, in we go.
0:15:03 > 0:15:06Ah, it's good to see a few useful out-buildings
0:15:06 > 0:15:09before you get into the main body of the house - one there, one there.
0:15:09 > 0:15:12You can never have enough storage in a property
0:15:12 > 0:15:15and that's one great thing about ex-local authority houses -
0:15:15 > 0:15:18they generally have lots of space, along with solid walls,
0:15:18 > 0:15:20built-in cupboards, that kind of stuff.
0:15:20 > 0:15:23But straight into the kitchen here
0:15:23 > 0:15:26and it's almost like a catalogue of kitchen units across the ages.
0:15:26 > 0:15:31We've got a bit of 1950s there, '70s there, this is '80s, '90s...
0:15:31 > 0:15:35Basically, it all wants to come out and be brought bang up to date.
0:15:35 > 0:15:40But it's a good size and, as I said, it just feels solid.
0:15:40 > 0:15:42So, room number one - let's carry one.
0:15:43 > 0:15:46If I had got in through the front door,
0:15:46 > 0:15:48I could have got into the kitchen that way
0:15:48 > 0:15:50or turned right, in to the living room.
0:15:52 > 0:15:53So, room number two, and...
0:15:55 > 0:15:57It's a doozy(!)
0:15:58 > 0:16:05The lounge. I have NEVER seen a wall covering like this.
0:16:05 > 0:16:10It's kind of...Artex gone bananas.
0:16:10 > 0:16:15And it's on the walls, on the ceiling there...
0:16:15 > 0:16:17It's...extraordinary.
0:16:21 > 0:16:22And it's got to go!
0:16:23 > 0:16:25# The icing on the cake... #
0:16:25 > 0:16:27There's a less welcome icing on this cake.
0:16:27 > 0:16:31Not only is this textured surface pretty ugly,
0:16:31 > 0:16:33it's also likely that, if it was done before the mid-1980s,
0:16:33 > 0:16:36it may contain asbestos.
0:16:36 > 0:16:39It's only dangerous if you sand it, drill it or break it up
0:16:39 > 0:16:42and generally poses no risk, otherwise.
0:16:42 > 0:16:44# Icing on the cake... #
0:16:44 > 0:16:48However, if you want to get rid of this - and why wouldn't you? -
0:16:48 > 0:16:50you need to follow safety regulations,
0:16:50 > 0:16:51so do check those out.
0:16:51 > 0:16:54You could get professional advice or, alternatively,
0:16:54 > 0:16:56you could plaster over it.
0:16:56 > 0:16:59There are other decorative throwbacks, like the latch,
0:16:59 > 0:17:01and the light switch. Well, that's just weird.
0:17:03 > 0:17:05I'd also advise, as a matter of course,
0:17:05 > 0:17:08having the electrics checked by a professional.
0:17:08 > 0:17:10There are three bedrooms upstairs.
0:17:10 > 0:17:14All are a pretty good size, but each one is in need of an overhaul.
0:17:14 > 0:17:17The most modern bit of decor I've seen so far
0:17:17 > 0:17:20is the bathroom suite, which might well be serviceable.
0:17:22 > 0:17:25Back to the past, though, with the original metal Crittall windows.
0:17:25 > 0:17:29They'll have to go. So the list of to-dos is definitely totting up.
0:17:29 > 0:17:33# I got a lot of things to do... #
0:17:33 > 0:17:36And looking outside, that list doesn't get any shorter.
0:17:36 > 0:17:38The very substantial garden is pretty wild,
0:17:38 > 0:17:41but there might be room to extend out,
0:17:41 > 0:17:43once you've cleared the overgrowth.
0:17:43 > 0:17:47But would it be worth it when there is so much to spend already?
0:17:47 > 0:17:48And how much value would it add,
0:17:48 > 0:17:53even if you got it for anywhere near the 58,000 guide price?
0:17:53 > 0:17:55Hopefully, the local auctioneer who sold the property
0:17:55 > 0:17:58will help me to see the wood from the trees.
0:17:59 > 0:18:01It has got space for extensions,
0:18:01 > 0:18:04but extensions are not going to be cost-effective.
0:18:04 > 0:18:06So what do you do with what's here?
0:18:06 > 0:18:09Well, a lot of people have extended the kitchen
0:18:09 > 0:18:11or the living accommodation into the out-buildings
0:18:11 > 0:18:13that are attached at the side.
0:18:13 > 0:18:15The kitchen could be doubled in size
0:18:15 > 0:18:20or you could make just a dining area, a utility area, off the kitchen.
0:18:20 > 0:18:23So there are possibilities, but it's adapting what's here.
0:18:23 > 0:18:25And how much does he think the property could be worth
0:18:25 > 0:18:28if it was put back on the open market
0:18:28 > 0:18:33after it had been refurbished and those store rooms have been adapted?
0:18:33 > 0:18:38Improved, sale value here would be about £95,000.
0:18:38 > 0:18:42And the rental income the property could generate?
0:18:42 > 0:18:47When this is renovated, it would have a rental value of about £550pcm.
0:18:47 > 0:18:52Well, there's work to be done, particularly in that lounge.
0:18:52 > 0:18:56But what you've got here is a really solid house
0:18:56 > 0:18:58which I think works really well.
0:18:58 > 0:19:00Get rid of the trees, spend come time and money
0:19:00 > 0:19:02sorting out the kitchen, bathroom, etc,
0:19:02 > 0:19:05and a lovely family home or rental property.
0:19:05 > 0:19:08Let's see who agreed when it went under the hammer.
0:19:08 > 0:19:09Lot 19 -
0:19:09 > 0:19:11three-bedroomed semi
0:19:11 > 0:19:15in an established, popular residential location.
0:19:15 > 0:19:1658,000 - thank you.
0:19:16 > 0:19:1958, I have. 59, over by the pillar.
0:19:19 > 0:19:22At 59,000 - 60, I've got.
0:19:22 > 0:19:24At 60, 61.
0:19:24 > 0:19:2761, 62.
0:19:27 > 0:19:2862, thank you.
0:19:28 > 0:19:3163,000. One more, 64.
0:19:31 > 0:19:3565,000. 65,500.
0:19:35 > 0:19:3666.
0:19:36 > 0:19:38500.
0:19:38 > 0:19:3967. 67.
0:19:39 > 0:19:41500.
0:19:41 > 0:19:4268.
0:19:42 > 0:19:44500.
0:19:44 > 0:19:4569.
0:19:46 > 0:19:48At 68 - 69.
0:19:48 > 0:19:50500.
0:19:50 > 0:19:5370,000. 70,000.
0:19:53 > 0:19:54And a half.
0:19:54 > 0:19:5770,500. 71?
0:19:57 > 0:20:00At 70,500, once.
0:20:00 > 0:20:03Twice, third time...
0:20:03 > 0:20:05Sold at 70 and a half.
0:20:05 > 0:20:08Gavin was the successful bidder at the auction,
0:20:08 > 0:20:11there with his parents, because his wife, Nicki,
0:20:11 > 0:20:12was unable to get time off work.
0:20:12 > 0:20:14The couple live locally
0:20:14 > 0:20:17and met me at their new three-bed Chaddesden property
0:20:17 > 0:20:19to tell me their plans.
0:20:22 > 0:20:24Nicki, Gavin, great to meet you both.
0:20:24 > 0:20:26- Hi, Martin, you all right? - Great. Congratulations.
0:20:26 > 0:20:28- Thank you.- Thank you.
0:20:28 > 0:20:29Tell me why you wanted to buy the house.
0:20:29 > 0:20:34We wanted an investment property. I'm expecting a baby...
0:20:34 > 0:20:35- Congratulations.- Thank you.
0:20:35 > 0:20:39It'll be a nice income for us when the baby's born, hopefully,
0:20:39 > 0:20:41if we get it done by then, Gavin.
0:20:41 > 0:20:44- Yes, we're looking to rent it, really.- OK.
0:20:44 > 0:20:46Have you done anything like this before?
0:20:46 > 0:20:51Sort of - bought a house before, couldn't sell it,
0:20:51 > 0:20:52- we had a property crash.- Right.
0:20:52 > 0:20:56Decided to rent it, made a bit of income,
0:20:56 > 0:20:58thought we'd fall for it again.
0:20:58 > 0:21:02- Right.- Gavin does a lot of the work himself as well, so...
0:21:02 > 0:21:04It's quite good, from that perspective,
0:21:04 > 0:21:07that we don't have to pay loads of money out,
0:21:07 > 0:21:11although it does take him a bit of a long time, sometimes.
0:21:11 > 0:21:14What are your jobs, when you're not doing this?
0:21:14 > 0:21:18- We both work for a big energy company.- Oh, OK.
0:21:18 > 0:21:20- I'm on sales. - I work in customer service.
0:21:20 > 0:21:23# Energy, energy
0:21:23 > 0:21:25# Energy... #
0:21:27 > 0:21:30I hope Gavin and Nicki have got plenty of energy,
0:21:30 > 0:21:32because they have a lot on their plate right now -
0:21:32 > 0:21:35their first baby on the way and this property to do up.
0:21:35 > 0:21:37Not only that,
0:21:37 > 0:21:40Gavin spends most weekends renovating the house they live in,
0:21:40 > 0:21:41about five minutes away,
0:21:41 > 0:21:43which they bought a couple of years ago.
0:21:43 > 0:21:47He rents out his previous home, but it was Nicki who set her sights
0:21:47 > 0:21:51on the couple's first investment purchase as, unlike at the auction,
0:21:51 > 0:21:52it was Gavin who missed the viewing.
0:21:55 > 0:21:57Unfortunately, I couldn't get the time off,
0:21:57 > 0:21:59so Nicki came round.
0:21:59 > 0:22:01- I came round with a video camera. - Oh, did you? OK.
0:22:01 > 0:22:06I filmed it all for Gavin and I knew he'd love it.
0:22:06 > 0:22:08- So he fell for it, didn't you? - Yeah, I loved it.
0:22:08 > 0:22:12The living room is a piece...to behold.
0:22:12 > 0:22:15I've never seen anything like that before, I have to admit.
0:22:24 > 0:22:25What are you going to do to it, then?
0:22:25 > 0:22:30Basically, a new kitchen, new flooring, new doors,
0:22:30 > 0:22:33tile the bathroom, seems to have a new suite in there.
0:22:33 > 0:22:36What about outside? You've got these out buildings haven't you?
0:22:36 > 0:22:38I don't know, as yet.
0:22:38 > 0:22:39It depends, with it being a rental,
0:22:39 > 0:22:42it might cost more than what it might make.
0:22:42 > 0:22:44Might make it a utility, something like that.
0:22:44 > 0:22:48You're going to be doing it. Nicki, what are you going to do?
0:22:48 > 0:22:52- I'll be supervising. - Oh, right.- Chief tea maker.
0:22:52 > 0:22:54Especially with me being pregnant,
0:22:54 > 0:22:56- so I don't want to do too much, but...- Of course not.
0:22:56 > 0:23:00- How pregnant are you? - Four and a half months pregnant.- OK.
0:23:00 > 0:23:05Timescale for doing the job - is that going to fit in with the baby or before the baby, or what?
0:23:05 > 0:23:08We'd like to fit it in before the baby, but if we can't,
0:23:08 > 0:23:11- then we'll do it after. - After. Let me get this right,
0:23:11 > 0:23:14you'll have a new baby, you've both got full-time jobs,
0:23:14 > 0:23:16although you presumably will stop for a little while,
0:23:16 > 0:23:19and then, in the spare time, when you're not up at three o'clock
0:23:19 > 0:23:22- in the morning doing a feed, you're going to be restoring the house?- Yes, yes.- Right.
0:23:22 > 0:23:26- Can you do it in the time? - Hoping six months.
0:23:26 > 0:23:29- Well, that's too late, isn't it? - That is too late, yeah.
0:23:29 > 0:23:31So I'm going to need more time, really.
0:23:31 > 0:23:34- # No time- No time, no time at all
0:23:34 > 0:23:38- # No time for you - No time, no time at all... #
0:23:38 > 0:23:41What about the budget?
0:23:41 > 0:23:43- Hoping to get it all done for eight.- OK.
0:23:43 > 0:23:50Including fees. £1,000 has already gone on legal and buying fees.
0:23:50 > 0:23:52So we're already down to seven.
0:23:52 > 0:23:55- It's tight, but if you're doing a lot of the work yourself...- Exactly.
0:23:55 > 0:23:58- Well listen, good luck with the baby.- Thank you.
0:23:58 > 0:24:02- Good luck with the house, as well. - Thank you very much.- Look forward to seeing how you get on.
0:24:02 > 0:24:05Well, Gavin seems like a pretty handy guy and I'm sure
0:24:05 > 0:24:08that, in normal circumstances, he'd have no problem sorting this out.
0:24:08 > 0:24:10But he's trying to balance a full-time job
0:24:10 > 0:24:14and the arrival of a baby. Will he get it done in time?
0:24:14 > 0:24:17Well, you can find out later in the show.
0:24:17 > 0:24:20Oh, and maybe we get to meet new baby, too.
0:24:21 > 0:24:26Still to come, is time also running out for this pub in Rotherham, Yorkshire?
0:24:26 > 0:24:30Will we be raising a glass or ringing last orders?
0:24:31 > 0:24:36And in Derby, we find out if our expectant couple,
0:24:36 > 0:24:39Gavin and Nicki, have beaten that baby deadline.
0:24:42 > 0:24:46But first, we go back to Canterbury in Kent, to discover that
0:24:46 > 0:24:51this teeny house needed a stairlift, as well as a facelift!
0:24:55 > 0:24:59Here in Canterbury, this one-bedroom terraced house
0:24:59 > 0:25:03was purchased for 106,000 at auction by Gary,
0:25:03 > 0:25:05who deals in properties in the care home sector.
0:25:05 > 0:25:10Gary's son Chris was forced to give up his career as a gas engineer,
0:25:10 > 0:25:13after losing his sense of smell in a car accident.
0:25:13 > 0:25:16The house certainly needed a bit of work, not least
0:25:16 > 0:25:21because this listed house sported a rather awkward spiral staircase.
0:25:21 > 0:25:24I thought it was a challenge for a first time developer.
0:25:24 > 0:25:31Undeterred, Chris had firm ideas about how he was going to knock this quirky little house into shape.
0:25:31 > 0:25:34How you going to carve up the space and use it?
0:25:34 > 0:25:36I would like to get two bedrooms out of it. If I do rent it out,
0:25:36 > 0:25:39then I can get two people in, instead of one.
0:25:39 > 0:25:41I wasn't sure about the two tiny bedrooms.
0:25:41 > 0:25:45I thought a bijou one-bed was a better way to go.
0:25:45 > 0:25:49One thing Chris doesn't doubt is that this is not going to be easy.
0:25:49 > 0:25:52If I had 30 years' experience, I'd think it was easy,
0:25:52 > 0:25:54- but I walk in here and I don't think it's easy, at all.- No.
0:25:54 > 0:25:57I don't think it's going to be easy. There's a lot to do.
0:25:57 > 0:26:00Yeah, it will be a learning curve, but, like I say, you've got to start somewhere.
0:26:00 > 0:26:04Gary thought the work would cost about 15,000,
0:26:04 > 0:26:07but Chris could see it going to £25,000.
0:26:07 > 0:26:12And three months later, we're back to see if they have made it shine.
0:26:12 > 0:26:16# Shine
0:26:16 > 0:26:18# Let it shine.#
0:26:18 > 0:26:21The conservatory, just as Chris planned,
0:26:21 > 0:26:23has been incorporated into the living space.
0:26:25 > 0:26:29I'm glad to see one bedroom and not two.
0:26:29 > 0:26:31And that staircase is back where it should be.
0:26:35 > 0:26:39It's always been a bit of a conundrum as to why it was put in the middle of the room,
0:26:39 > 0:26:44which obviously affected or divided the lounge and the bedroom.
0:26:44 > 0:26:49We've removed the staircase. Initially, it was a thought whether
0:26:49 > 0:26:51we would keep it, reposition it, something like that,
0:26:51 > 0:26:56if we were going to go along the lines of two bedrooms upstairs.
0:26:56 > 0:26:59We decided against that and to keep the one bedroom
0:26:59 > 0:27:03and put the new staircase back into its original position.
0:27:03 > 0:27:06So we've made more space upstairs and down, in that respect.
0:27:06 > 0:27:09I think it was put on a certain website and sold,
0:27:09 > 0:27:12so it actually had come to some use.
0:27:12 > 0:27:17And we restored the... installed another staircase, where the old one had been.
0:27:17 > 0:27:21A smart move and part of any good developer's strategy -
0:27:21 > 0:27:23throw nothing out you can sell on.
0:27:23 > 0:27:26It helps prevent costs spiralling out of control.
0:27:26 > 0:27:29Another way of saving money was Chris working with the tradesmen
0:27:29 > 0:27:33and he used this as an opportunity to learn as much as possible
0:27:33 > 0:27:36- about his new career. - There was a lot involved.
0:27:36 > 0:27:40Obviously, masses involved, from start to finish.
0:27:40 > 0:27:44I kept finding myself coming back to doing different things every day.
0:27:44 > 0:27:47Completely ripped the garden out. All the kitchen,
0:27:47 > 0:27:50I did all the main ripping out and gutting of the work.
0:27:50 > 0:27:52And the bathroom, I've put that back together.
0:27:52 > 0:27:54Came along when I could to do all the bits and pieces
0:27:54 > 0:28:00with the builders. And, literally, as you see, it is...
0:28:00 > 0:28:02I've just tried getting in when I can, basically.
0:28:02 > 0:28:04I've picked up a lot of stuff.
0:28:04 > 0:28:07It's been a great learning curve and a good start.
0:28:09 > 0:28:11So, yeah, it's been really enjoyable.
0:28:11 > 0:28:13This building is Grade II listed,
0:28:13 > 0:28:18and that can often mean complicated conservation and planning issues.
0:28:18 > 0:28:20These can cost time and money.
0:28:20 > 0:28:24Because we decided not to make the second bedroom
0:28:24 > 0:28:27and just restore things back to its original -
0:28:27 > 0:28:30ie, the staircase back to where it was originally planned
0:28:30 > 0:28:33when the building was built -
0:28:33 > 0:28:38and the fact that we didn't need to put up the partitions
0:28:38 > 0:28:42and the sectioning as we might have done,
0:28:42 > 0:28:44we didn't need to go through planning.
0:28:44 > 0:28:47It was one benefit. The other benefit was the cost.
0:28:47 > 0:28:49It did save quite a bit on our budget.
0:28:49 > 0:28:51Relocating the staircase was a good move,
0:28:51 > 0:28:54but it also revealed something more worrying.
0:28:54 > 0:28:58The spiral staircase, it turned out, was not properly supported.
0:28:58 > 0:29:01Consequently, the roof had started to spread.
0:29:01 > 0:29:03That's when the roof frame is not properly tied
0:29:03 > 0:29:05and allows horizontal movement
0:29:05 > 0:29:08that can cause the walls to curve outwards.
0:29:08 > 0:29:10So remedial work had to be carried out
0:29:10 > 0:29:13and supporting joists reinstalled.
0:29:13 > 0:29:17Chris reckoned the renovation would cost £25,000. Was he right?
0:29:17 > 0:29:20- I think it... What was it, 24? - I think, 24.
0:29:20 > 0:29:23But obviously, there's a little bit of work needing done in the garden,
0:29:23 > 0:29:26so it'll probably be 25, once we've finished it completely.
0:29:26 > 0:29:29A survey found that a tree leaning against the wall
0:29:29 > 0:29:32and guttering was causing damp issues.
0:29:32 > 0:29:35This will have to be cut down, but Chris doesn't think this is
0:29:35 > 0:29:40too big an issue, as the walls have been injected and are reinforced.
0:29:40 > 0:29:43However, there have been some hairy moments.
0:29:46 > 0:29:49I hadn't shaved for three or four days before Chris started the
0:29:49 > 0:29:54work proper and decided I would keep it on until the work was finished.
0:29:54 > 0:29:56We're virtually there now. My wife hates it.
0:29:56 > 0:29:59Everybody in the family hates it, so it's a good incentive for him
0:29:59 > 0:30:01to get the work finished.
0:30:02 > 0:30:04It's not surprising with the additional work
0:30:04 > 0:30:08that they spent that £25,000 budget predicted by Chris.
0:30:08 > 0:30:12With the purchase price of £106,000,
0:30:12 > 0:30:15their total investment now is 131,000.
0:30:17 > 0:30:19We asked two local estate agents to tell us
0:30:19 > 0:30:21what they thought of the property.
0:30:21 > 0:30:27It's not a bad size for a house. It's been well decorated, well presented.
0:30:27 > 0:30:30I would probably advise letting it out, for the time being,
0:30:30 > 0:30:33and see where we are in two or three years' time.
0:30:33 > 0:30:35Layout-wise, the improvements are good.
0:30:35 > 0:30:38It's been kept as one bedroom upstairs, which works well,
0:30:38 > 0:30:39there's a lot of space in it.
0:30:39 > 0:30:42Downstairs - new staircase in a corner,
0:30:42 > 0:30:45which has created lots of open-plan living.
0:30:45 > 0:30:49You've got space for a sitting area, dining area and a study area.
0:30:50 > 0:30:53So, a favourable reception for Chris's first development.
0:30:53 > 0:30:55He decided against turning
0:30:55 > 0:30:59this property into a two-bed. How does this affect the valuation?
0:30:59 > 0:31:02One or two bedrooms is always a dilemma.
0:31:02 > 0:31:05I think here with the restricted head height that we've got, with
0:31:05 > 0:31:07the space that we've got downstairs,
0:31:07 > 0:31:11I think, realistically, one bedroom is going to be the optimum.
0:31:11 > 0:31:14Two would have been great from a letting point of view.
0:31:14 > 0:31:16I don't think you would have done the values any favour.
0:31:16 > 0:31:19I think one bedroom was the way forward.
0:31:19 > 0:31:22What were the agents estimate for a resale value?
0:31:22 > 0:31:28In terms of resale, I would put this property in at about £175,000.
0:31:28 > 0:31:33I think if this was resold now, it would be £185-190,000.
0:31:34 > 0:31:37That's a lot higher than what I thought. Definitely.
0:31:37 > 0:31:39Yeah. It's wonderful news.
0:31:39 > 0:31:43We were anticipating 150-plus,
0:31:43 > 0:31:46never knowing what the market's going to be doing at any time.
0:31:46 > 0:31:48That is really encouraging. Very good.
0:31:49 > 0:31:52With the combined expenditure of 131,000,
0:31:52 > 0:31:56that maximum evaluation of 190,000
0:31:56 > 0:31:59could make Chris a profit of £59,000,
0:31:59 > 0:32:01minus taxes and expenses.
0:32:01 > 0:32:06Both experts predict a rental income of £700 per calendar month.
0:32:06 > 0:32:09The yield Chris could achieve would be just under 6.5%.
0:32:11 > 0:32:13Pretty good price, as well.
0:32:13 > 0:32:16Slightly more than what I thought it was going to go for.
0:32:16 > 0:32:17I think it's been terrific.
0:32:17 > 0:32:21I think that is...way over what we were expecting.
0:32:21 > 0:32:22It's been a wonderful experience.
0:32:22 > 0:32:27Chris has got a lot to do with that success.
0:32:27 > 0:32:30- It's onward and upward, I think. - On to the next one.
0:32:33 > 0:32:34And from a tiny space
0:32:34 > 0:32:38to a property with masses of space to spare, in Rotherham -
0:32:38 > 0:32:40a city that, with the help of a 25-year plan...
0:32:40 > 0:32:42Oh, and £2 billion.
0:32:42 > 0:32:46..is set to see something of a renaissance.
0:32:46 > 0:32:52# Anything could change at any time... #
0:32:52 > 0:32:54Well, just a short walk from the town centre,
0:32:54 > 0:32:56through that little underpass there,
0:32:56 > 0:32:59brings you to the lot I'm here to see.
0:32:59 > 0:33:02If you've guessed that it's a commercial premises,
0:33:02 > 0:33:03then, you're right.
0:33:03 > 0:33:05Well, half right, anyway,
0:33:05 > 0:33:10because it's actually a pub with a flat above it, three bedrooms.
0:33:10 > 0:33:12£60,000 was the guide price. Let's see what it's like.
0:33:14 > 0:33:15From the outside,
0:33:15 > 0:33:19it looks very much like a traditional old-fashioned boozer.
0:33:19 > 0:33:24It's just like walking into a pub that's like a normal pub, really.
0:33:24 > 0:33:26What have we got? Lots of space around here.
0:33:26 > 0:33:30Table and chairs still left. Even a dart board round the corner.
0:33:30 > 0:33:33We've got the bar area there with all the optics
0:33:33 > 0:33:37and the bits and pieces for the beer being poured. Space here.
0:33:37 > 0:33:41Then...even more space over this way. It's quite strange.
0:33:41 > 0:33:44Actually, you could imagine this, literally, opening up
0:33:44 > 0:33:46and having people in here.
0:33:46 > 0:33:49Sometimes you go into these pubs and they're in a right old state.
0:33:49 > 0:33:50This one is looking good.
0:33:50 > 0:33:53It's tired and dated, but, you know, it's not bad.
0:33:55 > 0:33:57There's a kitchen to the right of the bar
0:33:57 > 0:34:01and it seems perfectly adequate for knocking up some decent pub grub.
0:34:02 > 0:34:05To the left of the bar are the loos, again, in decent condition.
0:34:05 > 0:34:09It wouldn't be a pub without a place to store the beer.
0:34:09 > 0:34:14There's also a significant bit of land that comes with this plot,
0:34:14 > 0:34:16including the beer garden.
0:34:16 > 0:34:20This area is currently used for parking and a storage building.
0:34:20 > 0:34:22So, what about upstairs?
0:34:22 > 0:34:26From my experience, flats above pubs tend to be fairly dingy
0:34:26 > 0:34:29and tiny affairs. Not in this instance, I have to say.
0:34:29 > 0:34:31This is fantastic. Three bedrooms.
0:34:31 > 0:34:34One bedroom there, a living room, you've got a kitchen.
0:34:34 > 0:34:38You've got a separate loo, there. A very large landing area.
0:34:38 > 0:34:41Down there you've got another bedroom, you've got the bathroom.
0:34:41 > 0:34:45Then, through to the third bedroom. A lot of space.
0:34:45 > 0:34:46It needs a bit of work.
0:34:47 > 0:34:50I've got to say the view out the window isn't that brilliant,
0:34:50 > 0:34:52but I would have thought that this flat alone
0:34:52 > 0:34:53was worth the guide price.
0:34:53 > 0:34:56Remember, it was guided at £60,000 plus.
0:34:56 > 0:34:58So a lot of property for the money.
0:34:58 > 0:35:01Of course, even if it had a separate entrance,
0:35:01 > 0:35:04it's unlikely anyone would want to buy a flat above a pub
0:35:04 > 0:35:07in the middle of an industrial estate on the edge of a busy road.
0:35:07 > 0:35:10Even if they did, if you kept the pub downstairs,
0:35:10 > 0:35:13you would be losing valuable staff accommodation.
0:35:14 > 0:35:16But would you keep the pub?
0:35:16 > 0:35:20It's unlikely to be a great business opportunity in this location.
0:35:20 > 0:35:25Sadly, I think this pub will share the same fate as many others.
0:35:25 > 0:35:27# Closing time
0:35:27 > 0:35:33# Open all the doors and let you out into the world... #
0:35:34 > 0:35:38Well, a staggering 40 pubs a week close in the UK
0:35:38 > 0:35:39due to lack of business.
0:35:39 > 0:35:42I think that's fair to assume that that's what's happened here.
0:35:42 > 0:35:44It's easy to see why.
0:35:44 > 0:35:47When this was built, there probably would have been houses around here,
0:35:47 > 0:35:48miners who would have used it,
0:35:48 > 0:35:50people who worked in the local factories.
0:35:50 > 0:35:54Now, it's actually surrounded by lots of commercial premises.
0:35:54 > 0:35:59It really is a bit like it's marooned in a fairly unfriendly sea.
0:36:00 > 0:36:01I know what it needs.
0:36:01 > 0:36:06It needs to send out a message in a bottle and the message is, "Help."
0:36:10 > 0:36:11Sadly, the days are gone
0:36:11 > 0:36:15when people popped into a local pub for a beer or two at lunchtime.
0:36:15 > 0:36:19Now, everyone's quite rightly aware of the dangers of drink-driving,
0:36:19 > 0:36:21few people nip in for a drink after work.
0:36:23 > 0:36:25What could you do with this place?
0:36:25 > 0:36:28Clearly, a pub has failed in the past,
0:36:28 > 0:36:31so maybe we need to be a bit more creative.
0:36:31 > 0:36:34There are quite a few workers around here still,
0:36:34 > 0:36:39so maybe something that served food at lunchtime would potentially work.
0:36:39 > 0:36:42You could think about knocking it down and building flats, perhaps.
0:36:42 > 0:36:44I don't think the location really works for that.
0:36:44 > 0:36:47How about a health centre or a creche?
0:36:47 > 0:36:50That's an option. Certainly, there's lots of office workers
0:36:50 > 0:36:55who might use a creche or something like that. I don't know.
0:36:55 > 0:36:56All in all, though, I think
0:36:56 > 0:37:00the days of pints being pulled in there are over.
0:37:02 > 0:37:07So, will an investor be scraping the barrel if they buy this property?
0:37:08 > 0:37:12To find out what other options the pub could be used for,
0:37:12 > 0:37:15we invited a local estate agent to come and have a look around.
0:37:18 > 0:37:21The property does have potential to be converted to office use.
0:37:21 > 0:37:23It would be ideal for an architect,
0:37:23 > 0:37:25quantity surveyor -
0:37:25 > 0:37:28a business which needs access to the town centre and motorway network,
0:37:28 > 0:37:31without necessarily having a town-centre profile.
0:37:31 > 0:37:33It does have potential for a restaurant,
0:37:33 > 0:37:36but, I think, as a public house, I think its days are gone.
0:37:36 > 0:37:39What about a complete change of use?
0:37:39 > 0:37:42Could the pub ever be changed into housing, for instance?
0:37:42 > 0:37:46It's difficult to see residential use ever being a long-term future here.
0:37:46 > 0:37:48This is a commercial area, primarily.
0:37:48 > 0:37:52How much commercial income could the property generate?
0:37:52 > 0:37:55I would anticipate the rental income you'd expect to receive from here
0:37:55 > 0:37:56would be around £10,000 a year,
0:37:56 > 0:38:00if it was improved to a reasonable standard for office use.
0:38:01 > 0:38:05What about the income from the living space up on the first floor?
0:38:06 > 0:38:09If the flat were to be let out separately, after improvement,
0:38:09 > 0:38:13I would think you could get a rental of about £75 a week for it.
0:38:15 > 0:38:19Well, it feels like the pub is a throwback to Rotherham's past.
0:38:19 > 0:38:23Whilst Rotherham itself has moved on, the pub hasn't.
0:38:23 > 0:38:26It's going to take somebody with big ideas to sort it out.
0:38:26 > 0:38:29Let's see who that was, when it went under the hammer.
0:38:29 > 0:38:32This substantial building, just off the ring road,
0:38:32 > 0:38:35fairly accessible position. Large, triangular-shaped site.
0:38:35 > 0:38:39Who'll start me at 50,000? Looking for £50,000.
0:38:39 > 0:38:42Thank you. £50,000. 52?
0:38:42 > 0:38:4352?
0:38:43 > 0:38:4454?
0:38:44 > 0:38:4656?
0:38:46 > 0:38:4958, sir? Stood up. 58, shall we say?
0:38:49 > 0:38:5160? 61. Thank you.
0:38:51 > 0:38:54£61,000. 62, stood up in front of the column.
0:38:54 > 0:38:56Thank you. 62. 63, sir?
0:38:56 > 0:39:00Stood up behind the column. 62, sir. 63. 64.
0:39:00 > 0:39:0265.
0:39:02 > 0:39:0366.
0:39:04 > 0:39:0867 behind the column. 68? 68.
0:39:08 > 0:39:1069? 70,000.
0:39:11 > 0:39:14Anywhere else? £69,000, the first time at 69,000.
0:39:16 > 0:39:18For the second time at 69,000.
0:39:19 > 0:39:21For the third and last time at £69,000.
0:39:21 > 0:39:23Are you sure you're done, sir?
0:39:23 > 0:39:27You are done. 69,000. Sold, sir, behind the column.
0:39:28 > 0:39:33Paying £69,000 for the pub are Carl, seen here on the left,
0:39:33 > 0:39:36and his business partner Rob. They met through work.
0:39:36 > 0:39:40Carl has been working at a building suppliers for the past five years.
0:39:40 > 0:39:42Rob had his own building company.
0:39:42 > 0:39:45This was a relatively speedy decision that they
0:39:45 > 0:39:48chatted about for a week, and, hey, presto.
0:39:48 > 0:39:51I'm curious to find out what their plans are for turning
0:39:51 > 0:39:53the fortunes of this pub around.
0:39:53 > 0:39:57Rob, Carl, lovely to meet you both. Congratulations.
0:39:57 > 0:39:59- You've got yourself a pub.- Yeah.
0:40:01 > 0:40:04Tell me the story behind you buying this place, then?
0:40:04 > 0:40:07Well, we were just looking at different investment opportunities
0:40:07 > 0:40:09that are available at the moment.
0:40:09 > 0:40:12We had a look at it and had a look at the potential for it,
0:40:12 > 0:40:16- and decided, "Yeah, go for it." - Potential for what in your eyes?
0:40:16 > 0:40:21- Cafe-wine bar downstairs. - A cafe and wine bar.
0:40:21 > 0:40:23So that's going to be more of the day trade.
0:40:23 > 0:40:26Try and build the business up in the evening.
0:40:26 > 0:40:28Upstairs was a living accommodation,
0:40:28 > 0:40:32but we're going to be looking to turn that into a function room.
0:40:32 > 0:40:34We've got plans for outside, as well.
0:40:34 > 0:40:37There are outbuildings that we're going to be
0:40:37 > 0:40:39looking into having as a snack bar, as well, out there.
0:40:39 > 0:40:42So, get the trade within the day.
0:40:42 > 0:40:47Obviously, nicer inside and the snack bar outside.
0:40:47 > 0:40:49Carl and Rob clearly hope that,
0:40:49 > 0:40:52by diversifying into different businesses,
0:40:52 > 0:40:55a combination of pints, paninis and parties, if you like,
0:40:55 > 0:40:57that they will be spreading their financial risk.
0:40:59 > 0:41:01It's all going to be pretty clean cut.
0:41:01 > 0:41:03It's going to be all revamped downstairs.
0:41:03 > 0:41:06Tile flooring all the way through.
0:41:06 > 0:41:09We'll move the bar area, probably about three foot,
0:41:09 > 0:41:12and give it a really clean-cut, modern image.
0:41:12 > 0:41:16Then upstairs, it's going to be knocking through upstairs
0:41:16 > 0:41:17and revamping that.
0:41:17 > 0:41:19Have you done any market research
0:41:19 > 0:41:21about what kind of demand there might be
0:41:21 > 0:41:23for the services you're going to provide?
0:41:23 > 0:41:25Yeah, we've just been...
0:41:25 > 0:41:28Around this area, there's quite a lot of people working around here
0:41:28 > 0:41:30through the day time.
0:41:30 > 0:41:32They're having to go further afield
0:41:32 > 0:41:35to get sandwiches and drinks and that.
0:41:35 > 0:41:40So the daytime custom, in all honesty, should be OK.
0:41:40 > 0:41:43It's more the evenings, how we take that further.
0:41:43 > 0:41:48If someone books a function, ideally, they'll bring 100-200 people in.
0:41:48 > 0:41:51The other thing to think about would be live music,
0:41:51 > 0:41:54cos people tend to travel to see live music, don't they?
0:41:54 > 0:41:57It's somewhere I think is going to be nice for people to come
0:41:57 > 0:42:00and have a quiet drink, relax and stop for the evening,
0:42:00 > 0:42:03instead of just coming for one drink and, then, off they go.
0:42:03 > 0:42:05Music... Yeah, there's plenty,
0:42:05 > 0:42:07obviously, in the town centre that do that kind of thing.
0:42:07 > 0:42:10I think we'd like to be something a little bit different.
0:42:10 > 0:42:13# If there was no music
0:42:13 > 0:42:16# If there was no music... #
0:42:16 > 0:42:19I would have thought that, with no neighbours to annoy at night,
0:42:19 > 0:42:22this could be an ideal place to make a noise.
0:42:22 > 0:42:25Well, Carl and Rob definitely have a lot of know-how.
0:42:25 > 0:42:28Carl with his building supplies contacts
0:42:28 > 0:42:31and Rob with his experience in construction, itself.
0:42:31 > 0:42:35Also, Rob's wife is in catering and Carl has, in the past,
0:42:35 > 0:42:38helped his dad out with his pub.
0:42:38 > 0:42:39They've set a budget of £40-50,000
0:42:39 > 0:42:42and hope to get it done in three to four months.
0:42:42 > 0:42:44But do they have a Plan B?
0:42:44 > 0:42:47The biggest investment's going to be in the building.
0:42:47 > 0:42:50So, if the cafe bar doesn't take on,
0:42:50 > 0:42:54then we could look at a change of use and maybe let it out or sell it on.
0:42:54 > 0:42:56Listen, it's a really exciting venture.
0:42:56 > 0:42:59- I wish you all the very best with it.- Thanks.- Thank you.
0:43:01 > 0:43:04Well, Carl and Rob certainly have ambitious plans.
0:43:04 > 0:43:06Not only are they restoring the building,
0:43:06 > 0:43:08they're starting, literally, three businesses.
0:43:08 > 0:43:10These are tough times, economically, though,
0:43:10 > 0:43:12and it is a new business venture,
0:43:12 > 0:43:15which is slightly unfamiliar to them.
0:43:15 > 0:43:17How are they going to get on?
0:43:17 > 0:43:19Well, you can find out later in the show.
0:43:23 > 0:43:26Well, it's been many months since we last saw those properties.
0:43:26 > 0:43:30Have the renovations been plain sailing or bumpy rides?
0:43:30 > 0:43:32Time to go back and find out.
0:43:33 > 0:43:37We're heading back to Derbyshire, where in the suburbs of Chaddesden,
0:43:37 > 0:43:40we found, tucked behind a very overgrown garden,
0:43:40 > 0:43:43a three-bed semi, which was bought as a buy-to-let
0:43:43 > 0:43:46by Gavin and his wife Nicki, for £70,500.
0:43:49 > 0:43:54The decor was a lexicon of fashion through the decades.
0:43:54 > 0:43:56The very thick, textured wall covering,
0:43:56 > 0:43:59every period of kitchen cabinet, a hatch,
0:43:59 > 0:44:02metal windows, dated wallpaper, dodgy wiring.
0:44:02 > 0:44:05Only the bathroom looked as if it might be OK.
0:44:05 > 0:44:07Gavin is a handy DIY-er
0:44:07 > 0:44:09and the couple intended he would do the work
0:44:09 > 0:44:11while they both worked full-time and -
0:44:11 > 0:44:13oh, yeah, small detail this -
0:44:13 > 0:44:17before the arrival of their first baby, in four and a half months.
0:44:19 > 0:44:21Just let me get this... You have a new baby.
0:44:21 > 0:44:23You've both got full-time jobs.
0:44:23 > 0:44:25Although you will stop working for a little while,
0:44:25 > 0:44:26and then, in the spare time,
0:44:26 > 0:44:29when you're not up at three o'clock in the morning doing a feed,
0:44:29 > 0:44:32- you're going to be restoring the house?- Yes.- Right.
0:44:32 > 0:44:33Can you do it in the time?
0:44:33 > 0:44:36Hoping six months. Mmm.
0:44:36 > 0:44:38- Well, that's too late, isn't it? - That is too late, yeah.
0:44:38 > 0:44:41I'm going to need more time, really.
0:44:41 > 0:44:43They'd already spent £1,000 on legal fees
0:44:43 > 0:44:47and hoped to spend no more than £7,000 on the refurbishment.
0:44:49 > 0:44:51So, did they make it?
0:44:51 > 0:44:55Well, ten months later, we're back to meet Nicki, Gavin and baby Ellie.
0:44:55 > 0:44:58MUSIC: "Smooth Operator" by Sade
0:45:00 > 0:45:04Gavin's been busy installing new windows and doors throughout.
0:45:07 > 0:45:12Time-wise and decor-wise, this might have been a bumpy road.
0:45:12 > 0:45:17# No need to ask He's a smooth operator
0:45:17 > 0:45:22# Smooth operator... #
0:45:22 > 0:45:26But no. Gavin has done nearly all this lovely work himself.
0:45:26 > 0:45:30This stylish kitchen is looking great. Nice touches here.
0:45:30 > 0:45:32# Smooth operator... #
0:45:34 > 0:45:38OK, here in the lounge was one of the hardest rooms to deal with.
0:45:38 > 0:45:43The amount of texture, plaster work, right the way from the floor,
0:45:43 > 0:45:45right the way through over the ceiling.
0:45:45 > 0:45:50It's probably two weeks of solid hammering and chiselling,
0:45:50 > 0:45:53just purely to get this room back to bare walls.
0:45:53 > 0:45:55Now, I think it's come up great,
0:45:55 > 0:45:59especially with the lovely wallpaper, nice fire, full patio doors.
0:45:59 > 0:46:02I'm really proud. This is a nice room to be in.
0:46:04 > 0:46:07Thank goodness the colour scheme upstairs has been muted,
0:46:07 > 0:46:09allowing Gavin and Nicki to make a statement with the wallpaper
0:46:09 > 0:46:12in the master bedroom.
0:46:12 > 0:46:15Gavin has installed new windows throughout,
0:46:15 > 0:46:18and the bathroom one is smaller than the original,
0:46:18 > 0:46:20allowing a shower to be installed.
0:46:20 > 0:46:22The original suite's remained,
0:46:22 > 0:46:25but new flooring and tiles do the job nicely.
0:46:25 > 0:46:27Gavin's re-plumbed throughout.
0:46:27 > 0:46:28What about the kitchen,
0:46:28 > 0:46:31which had every era of unit you could think of?
0:46:31 > 0:46:34So we've created so much more space in the kitchen.
0:46:34 > 0:46:37There was a wall here and here,
0:46:37 > 0:46:39so Gavin's knocked that out completely
0:46:39 > 0:46:41and we've created all this space
0:46:41 > 0:46:44so we could put the oven, the hob and the hood in.
0:46:44 > 0:46:46I think the finish in here is fantastic.
0:46:46 > 0:46:49I love the worktops, the black tiles with the white grout. I love that.
0:46:49 > 0:46:53The cupboards, as well. This is my favourite room in the house.
0:46:54 > 0:46:57I suspected the layout could be improved at the back here,
0:46:57 > 0:46:58when I first saw it.
0:46:58 > 0:47:01Gavin's converting the former storeroom into a utility room,
0:47:01 > 0:47:03which will be much better.
0:47:03 > 0:47:06But that old saying, "New house, new baby,"
0:47:06 > 0:47:08had to be swapped around in this case.
0:47:09 > 0:47:13Well, we wanted to get the house finished before I had Ellie.
0:47:13 > 0:47:16I was only four months pregnant at the time and we thought
0:47:16 > 0:47:19we'd be able to do it, but I didn't have the best pregnancy.
0:47:19 > 0:47:23I was quite tired, so I couldn't do a lot, at all.
0:47:23 > 0:47:26I wasn't able to put the time in that I wanted to here,
0:47:26 > 0:47:29so we decided we would have Ellie.
0:47:29 > 0:47:33A month into little Ellie, she started sleeping better,
0:47:33 > 0:47:36so I was able to come here and spend more time here.
0:47:37 > 0:47:39With very little work getting done before the birth,
0:47:39 > 0:47:42Gavin decided to take a career break from work
0:47:42 > 0:47:45so he could concentrate on getting the house finished.
0:47:47 > 0:47:49It was good to have a goal in mind, wasn't it?
0:47:49 > 0:47:52We'd already got tenants, so we knew that they were moving in.
0:47:52 > 0:47:54I think we thought it was going to be
0:47:54 > 0:47:56a pretty straightforward development.
0:47:56 > 0:47:58But with Gavin doing everything on his own,
0:47:58 > 0:48:00it took a lot longer than what we thought.
0:48:00 > 0:48:04Although it's been ten and a half months since our first visit,
0:48:04 > 0:48:07very little was done before baby Ellie was born,
0:48:07 > 0:48:10so the actual work has taken about four months.
0:48:10 > 0:48:13I wonder how the £7,000 budget has fared?
0:48:14 > 0:48:19We're well on track for that. I've spent about £5,000, so far.
0:48:19 > 0:48:24Got a little bit to go. Couple of rooms to finish off and a new boiler.
0:48:24 > 0:48:27But again, that should all be around about the 6,000 mark,
0:48:27 > 0:48:29so I'm really happy.
0:48:29 > 0:48:32I'm really impressed that Gavin has done all the work himself,
0:48:32 > 0:48:35apart from the electrics, which his dad is qualified to do.
0:48:35 > 0:48:38Of course, Gavin will get a qualified gas fitter
0:48:38 > 0:48:41to install the new boiler in the utility room.
0:48:41 > 0:48:45Providing they stick to £6,000, with the £70,500
0:48:45 > 0:48:50they paid at auction, it will take their total investment to £76,500.
0:48:53 > 0:48:55What will two property experts think of the house?
0:48:55 > 0:48:59First, the auctioneer who sold it and viewed it originally.
0:48:59 > 0:49:01Does the refurbished house reflect the money
0:49:01 > 0:49:02Gavin and Nicki have invested?
0:49:02 > 0:49:04I think, with the work that they've done here
0:49:04 > 0:49:08there is no doubt in my mind they are appealing to the rental market.
0:49:08 > 0:49:09But it's all fresh stuff.
0:49:09 > 0:49:11The property's been refitted out completely,
0:49:11 > 0:49:14it's been redecorated, it's been re-carpeted.
0:49:14 > 0:49:16This is a fairly standard property for the area.
0:49:16 > 0:49:20Nice big living rooms, three bedrooms, perfect for a family.
0:49:20 > 0:49:22If you're doing it to sell on to an owner-occupier,
0:49:22 > 0:49:25I think you would try and create a higher standard.
0:49:25 > 0:49:27Changing the kitchen to make it a larger family kitchen
0:49:27 > 0:49:29is always a good option.
0:49:29 > 0:49:32To improve the appeal to a more wider audience,
0:49:32 > 0:49:35this property needs to have a better finish.
0:49:35 > 0:49:38Will the resale value be more than the £76,500
0:49:38 > 0:49:41that Gavin and Nicki have spent?
0:49:41 > 0:49:47I would expect to achieve between 95 and £100,000.
0:49:47 > 0:49:51I think an appropriate asking price would be £99,950.
0:49:51 > 0:49:54I think you'd finish up taking about £95,000 for it.
0:49:55 > 0:49:58That £95,000 figure would give them
0:49:58 > 0:50:03a possible profit of £18,500 before taxes and expenses.
0:50:03 > 0:50:06I think I thought it would be a little bit more for the valuation,
0:50:06 > 0:50:08but it's still a decent profit.
0:50:08 > 0:50:10I'm still quite pleased with that.
0:50:10 > 0:50:13The couple, of course, always intended renting,
0:50:13 > 0:50:14and already have a tenant.
0:50:14 > 0:50:17So have they set the rent at the right level?
0:50:17 > 0:50:19Because of the quality of the finish,
0:50:19 > 0:50:23I would expect to achieve up to a value of £525 per calendar month.
0:50:23 > 0:50:25If this was on the rental market,
0:50:25 > 0:50:30it would command a value of about £550 a calendar month.
0:50:30 > 0:50:33That's a yield of 8.6% on that high rental figure
0:50:33 > 0:50:36of £550 per calendar month.
0:50:36 > 0:50:40I think for the rental value, that's spot-on where we are.
0:50:40 > 0:50:43- Where we're thinking.- Exactly what we're thinking, isn't it?
0:50:43 > 0:50:46- What we're hoping for. - Yeah, that's good.
0:50:46 > 0:50:49And how do Gavin and Nicki see the future shaping up?
0:50:49 > 0:50:52Do they see themselves developing another property?
0:50:52 > 0:50:53This is a long-term investment,
0:50:53 > 0:50:58so hopefully, the tenant will stay and we can keep renting it out.
0:50:58 > 0:50:59The older that Ellie gets,
0:50:59 > 0:51:02I think the easier it will be for me and you to...
0:51:02 > 0:51:03Yeah, to have a little helper.
0:51:03 > 0:51:05..start working on it again.
0:51:10 > 0:51:14So from a modest £7,000 refurbishment, back to Rotherham -
0:51:14 > 0:51:17a town that's undergoing a rather more lavish
0:51:17 > 0:51:20£2 billion transformation.
0:51:20 > 0:51:22Earlier in the programme, Rob and his business partner Carl
0:51:22 > 0:51:25bought this pub and three-bedroom flat for 69,000.
0:51:27 > 0:51:29The property was located on an industrial estate
0:51:29 > 0:51:33and options seemed limited, but not to this pair.
0:51:33 > 0:51:36Well, we were just looking at different investment opportunities
0:51:36 > 0:51:38that's available at the moment.
0:51:38 > 0:51:41We had a look at it and had a look at the potential for it
0:51:41 > 0:51:43and decided, "Yeah, go for it."
0:51:44 > 0:51:46They had ambitious plans to try
0:51:46 > 0:51:49and capture the day trade, by converting the ground floor
0:51:49 > 0:51:53into a wine bar and coffee shop, with a snack bar outside.
0:51:53 > 0:51:55They hoped to turn that three-bedroomed flat
0:51:55 > 0:52:00into a function room, which would take care of the evening trade.
0:52:00 > 0:52:02They had a pretty clear idea of what it would look like.
0:52:04 > 0:52:06It's all going to be pretty clean cut.
0:52:06 > 0:52:09It's just going to be all revamped downstairs,
0:52:09 > 0:52:11tiled flooring all the way through.
0:52:11 > 0:52:14We'll move the bar area and just give it a really clean-cut,
0:52:14 > 0:52:15modern image.
0:52:15 > 0:52:19They had a budget of 40 to £50,000
0:52:19 > 0:52:21and reckoned it would take about four months.
0:52:23 > 0:52:27Well, that was two years nine months ago and we've returned.
0:52:30 > 0:52:33Now, when Carl was describing the tiled flooring,
0:52:33 > 0:52:35this wasn't what I envisaged.
0:52:39 > 0:52:42As Rob explained, their initial plan got floored.
0:52:44 > 0:52:47After we got approval with planning permission and everything,
0:52:47 > 0:52:50just as we were about to start with the works,
0:52:50 > 0:52:53Carl had second thoughts and thought it weren't really for him.
0:52:55 > 0:53:00So he decided to pull out and I took it on on my own.
0:53:00 > 0:53:03# Better call the whole thing off... #
0:53:05 > 0:53:07It was an amicable split.
0:53:07 > 0:53:10Builder Rob bought out his business partner Carl,
0:53:10 > 0:53:13but it did further delay the start.
0:53:13 > 0:53:14Then, Rob had a change of plan
0:53:14 > 0:53:19and decided to let the refurbished ground floor to his friend Dave,
0:53:19 > 0:53:22who was looking to relocate his tile shop.
0:53:23 > 0:53:28This side over here was where the games area and the dance floor was.
0:53:28 > 0:53:31Above that area there was a double chimney breast and walls.
0:53:31 > 0:53:35That's come out through the roof. The bar was across here.
0:53:35 > 0:53:36All that's gone.
0:53:37 > 0:53:42There's walls and chimney breasts removed from over this side.
0:53:42 > 0:53:45It's all opened up. It's a lot brighter.
0:53:45 > 0:53:47The windows have been replaced.
0:53:47 > 0:53:50He's looking at opening the shop in a week's time,
0:53:50 > 0:53:55so we've got another week just to get all the finishing touches done.
0:53:57 > 0:53:59Blimey. A complete change of plan then.
0:53:59 > 0:54:03No wine bar and coffee shop, but a tile showroom.
0:54:03 > 0:54:07Before you completely glaze over, the good news is that Rob did
0:54:07 > 0:54:10continue with his plan for a snack bar in the outbuilding at the back.
0:54:12 > 0:54:13OK, so it's not outside
0:54:13 > 0:54:16and not the coffee shop he originally planned,
0:54:16 > 0:54:18but it is up and running.
0:54:18 > 0:54:20Well, the changes we've made in here...
0:54:20 > 0:54:24This, what we're standing in at the moment, was the garage.
0:54:24 > 0:54:27This was a solid brick wall into the other area, where they used
0:54:27 > 0:54:29to feed the dray horses.
0:54:29 > 0:54:34Refurbished it and it's now become the snack bar, cafe.
0:54:34 > 0:54:37# Good God, it's a snack attack...#
0:54:37 > 0:54:41Once he was going solo, Rob thought he would tackle the snack bar first,
0:54:41 > 0:54:43and that is now up and running.
0:54:44 > 0:54:45As a landlord,
0:54:45 > 0:54:49he now has the income from that as well as Dave's tile business.
0:54:49 > 0:54:52With the original plan for the wine bar and cafe gone,
0:54:52 > 0:54:55so has the idea for a function room in the flat above.
0:54:55 > 0:54:58So does Rob have any vision for that?
0:54:58 > 0:55:01At the moment, it's completely derelict.
0:55:01 > 0:55:04Stripped back to how it was down here.
0:55:04 > 0:55:07Dave's eventually looking at the possibility of having
0:55:07 > 0:55:10that as an extension to the downstairs floor.
0:55:10 > 0:55:13But...we've another six months to think about that yet.
0:55:13 > 0:55:15This was always going to be a tricky one.
0:55:15 > 0:55:17The flat had great proportions,
0:55:17 > 0:55:20but while it would most definitely be quieter living above a tile shop,
0:55:20 > 0:55:23rather than a pub, it's not exactly ideal.
0:55:23 > 0:55:27You would need to spend money making a separate entrance.
0:55:27 > 0:55:30So with the function room no longer viable, it seems to me
0:55:30 > 0:55:33like it has to be some kind of commercial or retail space.
0:55:33 > 0:55:36Rob has adapted his plan to fit the circumstances,
0:55:36 > 0:55:42but I'm wondering what that has meant for his 40 to £50,000 budget.
0:55:42 > 0:55:44Today, it's about 35,000.
0:55:45 > 0:55:49There's about another 5,000 upstairs.
0:55:49 > 0:55:54But the remaining 5 to 10,000, what we were looking at spending,
0:55:54 > 0:55:57was for the coffee machines, the seating area
0:55:57 > 0:56:00and everything for the coffee bar.
0:56:00 > 0:56:03Rob co-purchased this property for £69,000,
0:56:03 > 0:56:06and the eventual refurbishment spend looks like being 40,000.
0:56:06 > 0:56:10Altogether, that's £109,000.
0:56:10 > 0:56:13It's time to see if a local commercial agent thinks this has
0:56:13 > 0:56:16turned out to be a good investment and a smart business move.
0:56:16 > 0:56:18Pretty good. They've done a good overall job.
0:56:18 > 0:56:20I'd say they've improved the premises.
0:56:20 > 0:56:22They've given it a modern touch.
0:56:22 > 0:56:24I think it would have been difficult to really entice people,
0:56:24 > 0:56:27certainly for evening trade, if you had a tapas wine bar,
0:56:27 > 0:56:28so I think getting it open plan
0:56:28 > 0:56:32and getting a commercial business is the right thing to do.
0:56:33 > 0:56:36With the two commercial businesses standing alone,
0:56:36 > 0:56:38Rob could potentially sell them separately.
0:56:38 > 0:56:44What value could they achieve? More than the £109,000 invested?
0:56:44 > 0:56:49I would look at valuing the cafe at around 30 to £35,000.
0:56:49 > 0:56:52The frontal pub, with a commercial occupant,
0:56:52 > 0:56:55depending on lease and rental,
0:56:55 > 0:56:59would probably market for around 70 to £80,000.
0:57:00 > 0:57:03If both sold at the higher valuation,
0:57:03 > 0:57:06there would be a £6,000 profit, before tax and expenses.
0:57:06 > 0:57:08Would Rob consider selling?
0:57:10 > 0:57:14No, keep it. Keep it and carry on renting it, as we are.
0:57:15 > 0:57:19Rob is fortunate that he already has tenants for both areas,
0:57:19 > 0:57:22but is he getting the best possible returns?
0:57:22 > 0:57:25What I would suggest, as a rental figure for the combined businesses,
0:57:25 > 0:57:28which is the cafe and the commercial outlet at the front,
0:57:28 > 0:57:30would be around £9,000 per annum.
0:57:30 > 0:57:33In fact, Rob is doing considerably better than that.
0:57:33 > 0:57:36He has retained ownership of the cafe business
0:57:36 > 0:57:39and he rents the space, the furniture, fittings and goodwill
0:57:39 > 0:57:41for £150 a week.
0:57:41 > 0:57:45The tile shop space he rents, bringing him in £175 a week,
0:57:45 > 0:57:49so in total, he's making £15,600 a year.
0:57:49 > 0:57:51But it's not just about the money.
0:57:53 > 0:57:58It's never really been like this before. It's brought life back to it.
0:57:58 > 0:58:02There's people employed and it's an empty building that's being used.
0:58:06 > 0:58:08We'll be back next time, with more thrills and spills
0:58:08 > 0:58:11- from the auction room.- Yes. Make sure you join us then,
0:58:11 > 0:58:13- for more Homes Under The Hammer. - Goodbye.- Goodbye.