0:00:02 > 0:00:06- Hello and welcome to the show.- Now, buying a property can be a long,
0:00:06 > 0:00:08drawn-out process, but not at auction.
0:00:08 > 0:00:12Now, imagine getting the keys to your dream property in just 28 days?
0:00:12 > 0:00:15Sound too good to be true?
0:00:15 > 0:00:18Well, it's not, if you buy your home under the hammer!
0:00:43 > 0:00:46Sometimes buying at auction can be a bit of a gamble,
0:00:46 > 0:00:48but not if you do your research first.
0:00:48 > 0:00:52So, are today's buyers on a winning streak?
0:00:52 > 0:00:55Here's what they bought.
0:00:55 > 0:00:59In Chiswick, London, there's a flat in this building I adore
0:00:59 > 0:01:01from the outside and may fall for the inside, too,
0:01:01 > 0:01:05once the work is done.
0:01:05 > 0:01:08I'll be looking around a five-bed house of multiple occupation
0:01:08 > 0:01:11in Derby, which could make big bucks.
0:01:11 > 0:01:15Get it right and it could be a great little earner.
0:01:15 > 0:01:18And I will be in Blyth, Northumberland,
0:01:18 > 0:01:20checking out a real option rarity,
0:01:20 > 0:01:23a property that needs virtually no work.
0:01:23 > 0:01:25Well, maybe a little.
0:01:26 > 0:01:29All these properties are being sold at auction,
0:01:29 > 0:01:31we'll find out who bought them, and what they paid for them
0:01:31 > 0:01:34when they went under the hammer.
0:01:34 > 0:01:35Sold.
0:01:44 > 0:01:47There's no nicer place to stroll on a sunny day
0:01:47 > 0:01:50than the banks of the River Thames and this part of Chiswick,
0:01:50 > 0:01:54known as Strand-on-the-Green, is particularly picturesque.
0:01:54 > 0:01:58A short walk from Kew Gardens and lined with gorgeous homes,
0:01:58 > 0:02:01well, it's been described as one of London's last remaining villages
0:02:01 > 0:02:05and it really is a very special place to live.
0:02:05 > 0:02:09You're a 20-minute walk from the nearest Tube station,
0:02:09 > 0:02:11which isn't perhaps ideal,
0:02:11 > 0:02:16but that doesn't seem to have held back property prices!
0:02:16 > 0:02:19The lot that went to auction was a flat, but around here,
0:02:19 > 0:02:24some really big houses can sell for several million pounds.
0:02:24 > 0:02:27A couple of minutes from the river and we're here, yes,
0:02:27 > 0:02:31it just keeps getting better, because the flat we're here to see
0:02:31 > 0:02:34is in this impressive Regency-style building.
0:02:34 > 0:02:36It's a one-bed, it's on the third floor
0:02:36 > 0:02:40and it had a guide price of £240,000.
0:02:40 > 0:02:42Isn't it gorgeous?
0:02:43 > 0:02:48Now, I know that sounds like a lot of money for a one-bedroom flat,
0:02:48 > 0:02:50because it is!
0:02:50 > 0:02:54But this is a prime location and similar flats regularly go
0:02:54 > 0:02:57for half a million pounds and, with its great facade,
0:02:57 > 0:03:00well-kept communal gardens, from the outside,
0:03:00 > 0:03:03this place looks impressive.
0:03:04 > 0:03:07Hmm-mmm! Calf muscles, ready for the burn!
0:03:10 > 0:03:13# To the left, to the right,
0:03:13 > 0:03:17# Step it up, step it up, it's all right
0:03:17 > 0:03:19# To the left... #
0:03:19 > 0:03:20LUCY LAUGHS
0:03:20 > 0:03:23That's a serious amount of steps to climb!
0:03:23 > 0:03:28Well, before we go any further, this flat is for the young and fit.
0:03:28 > 0:03:30Phew! Right, let us have a little look around,
0:03:30 > 0:03:33we've got a fantastic space behind me, that really is lovely,
0:03:33 > 0:03:35loads of views over there,
0:03:35 > 0:03:38a nice bathroom, the thing that I am noticing
0:03:38 > 0:03:42is the eaves, but you don't feel like you're shoved upstairs
0:03:42 > 0:03:46in an attic space, the rooms have got fantastic proportions,
0:03:46 > 0:03:48through here we've got a little kitchen,
0:03:48 > 0:03:51I think you could actually try and enlarge that in some way.
0:03:51 > 0:03:54You've got a nice little window area and you can fit a table in,
0:03:54 > 0:03:56so you could have supper in there.
0:03:56 > 0:04:00Little fireplace, over here, you've got a beautiful window.
0:04:00 > 0:04:05Another thing, it's incredibly light and what I like, again,
0:04:05 > 0:04:08is you just don't feel squashed in, you've got far-reaching views,
0:04:08 > 0:04:11you feel a world away from everything.
0:04:11 > 0:04:15So, the positives. Great space. The negatives. The stairs.
0:04:15 > 0:04:18All in all, I think it's a brilliant little flat.
0:04:18 > 0:04:20# Yeah, yeah, yeah... #
0:04:20 > 0:04:23OK, I say little, actually, in London terms,
0:04:23 > 0:04:26this place is pretty spacious and being in the roof
0:04:26 > 0:04:28gives it a lot of character and light.
0:04:28 > 0:04:33But it's undoubtedly dated and lacking any sense of "Wow!"
0:04:35 > 0:04:37# Yeah, yeah, yeah... #
0:04:37 > 0:04:40So, it's definitely a case of splashing some cash.
0:04:40 > 0:04:43The question is, how much?
0:04:43 > 0:04:45# Yeah, yeah, yeah... #
0:04:45 > 0:04:49There's no doubt the flat needs to be high spec when it's done,
0:04:49 > 0:04:52I am talking marble worktops, high-end appliances,
0:04:52 > 0:04:56a hotel-style bathroom, it's what buyers around here want
0:04:56 > 0:05:00and expect from a home, let me tell you, and renters aren't far behind.
0:05:00 > 0:05:02You need to make the place sparkle
0:05:02 > 0:05:05to help people get over the fact that the service charge
0:05:05 > 0:05:08is a whopping two grand a year!
0:05:08 > 0:05:13That's £166 a month, enough to put your average buyer off,
0:05:13 > 0:05:18which is another reason you need to appeal to the really rather rich.
0:05:18 > 0:05:21# Bang, bang
0:05:21 > 0:05:26- # We're beautiful and dirty rich - Dirty rich, dirty, dirty rich
0:05:26 > 0:05:27# Bang, bang... #
0:05:27 > 0:05:31You could certainly see where some of that high service charge goes,
0:05:31 > 0:05:34with the beautifully-maintained garden and exterior
0:05:34 > 0:05:39and with the top floor flat, you want the roof to be in good order.
0:05:39 > 0:05:42But with high costs, come high expectations,
0:05:42 > 0:05:46which, at present, the flat simply doesn't match.
0:05:49 > 0:05:52The property came with a £240,000 guide price
0:05:52 > 0:05:54and the local estate agent we invited along
0:05:54 > 0:05:57loved the outside as much as I did.
0:06:00 > 0:06:02It really is a stunning property,
0:06:02 > 0:06:07stucco-fronted, beautiful, really, it's a major statement piece.
0:06:07 > 0:06:11When you eventually get into it, it's got some wonderful views.
0:06:11 > 0:06:12Without a doubt,
0:06:12 > 0:06:16some people may find the amount of stairs a little off-putting,
0:06:16 > 0:06:20but, in my opinion, when you get to the top, it's well worth it.
0:06:20 > 0:06:23Yes, it's an effort to get inside the flat,
0:06:23 > 0:06:27but what efforts are needed to make that hike upstairs worthwhile?
0:06:27 > 0:06:30In my professional opinion,
0:06:30 > 0:06:33you're going to be looking to spend around about £45,000
0:06:33 > 0:06:35to take it to the standard of finish
0:06:35 > 0:06:40that you need to, to get maximum price when selling.
0:06:40 > 0:06:44So, with that guide price of £240,000,
0:06:44 > 0:06:47could this one-bed flat really show any financial returns?
0:06:49 > 0:06:55Once fully renovated, we could be looking anything as high as £450,000.
0:06:55 > 0:06:59Wow! So, there's no doubt there could be some decent profit here,
0:06:59 > 0:07:02but what about rental returns?
0:07:02 > 0:07:06I'd expect to obtain around about £1,700 per calendar month.
0:07:09 > 0:07:14This is a stunning location in a very special part of the capital,
0:07:14 > 0:07:17a million miles away from the hustle and bustle of London.
0:07:17 > 0:07:21And the flat itself, well, it could be a really lovely place to live,
0:07:21 > 0:07:23if you've the money to spend.
0:07:23 > 0:07:27Find out who did at the auction.
0:07:31 > 0:07:36So, move on to Lot 48. I have seen this one, nice property.
0:07:36 > 0:07:39Very appealing, one-bed flat, it needs some upgrading.
0:07:39 > 0:07:41Er, I don't know. Start low,
0:07:41 > 0:07:44start at 200, go upwards from there.
0:07:44 > 0:07:46200 with you,
0:07:46 > 0:07:48205,
0:07:48 > 0:07:49210,
0:07:49 > 0:07:52215, 220,
0:07:52 > 0:07:55225, 230,
0:07:55 > 0:07:58235, 240.
0:07:58 > 0:08:01245, 250,
0:08:01 > 0:08:03255,
0:08:03 > 0:08:04260,
0:08:04 > 0:08:06265...
0:08:06 > 0:08:10With the bidding heating up, we rejoin at 300,000.
0:08:10 > 0:08:12300, 301,
0:08:12 > 0:08:14302,
0:08:14 > 0:08:16302, 303,
0:08:16 > 0:08:19304, 305,
0:08:19 > 0:08:21306, 307,
0:08:21 > 0:08:24308, 309,
0:08:24 > 0:08:27310, 311,
0:08:27 > 0:08:29312, 313,
0:08:29 > 0:08:32314, 315,
0:08:32 > 0:08:35316, 317,
0:08:35 > 0:08:38318, 319,
0:08:38 > 0:08:40back to you, 318,
0:08:40 > 0:08:42319, elsewhere?
0:08:42 > 0:08:45318, first time...
0:08:45 > 0:08:47second time...
0:08:47 > 0:08:49third and last time...
0:08:49 > 0:08:53sold, 318.
0:08:53 > 0:08:55So, after a hard-fought battle,
0:08:55 > 0:09:00the one-bed top floor Chiswick flat was bought for £318,000
0:09:00 > 0:09:03by Orvis.
0:09:03 > 0:09:05Orvis is an accountant based in West London
0:09:05 > 0:09:09and he bought this flat with his wife, Farima.
0:09:09 > 0:09:13I met them back at the flat to find out more.
0:09:13 > 0:09:16Guys, congratulations, this is great news for you.
0:09:16 > 0:09:20I mean, what a fabulous part of London this is!
0:09:20 > 0:09:23- It is, actually, yes. - It's a lovely area.
0:09:23 > 0:09:26And a great property as well, so who found it?
0:09:26 > 0:09:28Well, actually, we have a friend.
0:09:28 > 0:09:30THEY LAUGH
0:09:30 > 0:09:32He did all the hard work!
0:09:32 > 0:09:34Really, and you've just swanned in at the end?
0:09:34 > 0:09:36We did it together.
0:09:36 > 0:09:41We have a friend, a good friend, and he was really helping us.
0:09:41 > 0:09:47He basically did a lot of research and he picked this property.
0:09:47 > 0:09:52Actually, I saw it, you didn't see the property before going, did you?
0:09:52 > 0:09:56- No.- It was only me seeing it before. - I trust you!
0:09:56 > 0:09:58So why have you bought this flat?
0:09:58 > 0:10:00For investment purposes, basically, yeah.
0:10:00 > 0:10:04We're not going to live in it, we're going to make it nice and resell.
0:10:05 > 0:10:08This is their first development together
0:10:08 > 0:10:11and they've been looking for some time for the right property
0:10:11 > 0:10:13at the right price and now with this flat,
0:10:13 > 0:10:16I hope they've finally found it.
0:10:16 > 0:10:21# I'm so glad I finally found you
0:10:21 > 0:10:25# Yes, that one... #
0:10:25 > 0:10:28So now you've got the property, what is your vision for a flat
0:10:28 > 0:10:31like this, because I really think by the time you've climbed all
0:10:31 > 0:10:37those stairs, you've got to open the door and be faced with a wow factor.
0:10:37 > 0:10:39Well, basically, we're going to do everything.
0:10:39 > 0:10:42We're going to knock everything down and
0:10:42 > 0:10:46do everything from scratch and we're thinking of doing it to
0:10:46 > 0:10:50a high standard, sort of, because of the area and the location.
0:10:50 > 0:10:51I think that's a great idea.
0:10:51 > 0:10:54I really think you need to be giving it top spec because it is
0:10:54 > 0:10:58going to be some city worker, some very professional person.
0:10:58 > 0:11:02- That's what we had in our mind, yeah. - So what's your budget for the work?
0:11:02 > 0:11:08We've put a limit of £40,000 plus about £5,000 as contingency,
0:11:08 > 0:11:13basically, which probably we're going to use because we initially
0:11:13 > 0:11:17thought it was a little bit of wiring and plumbing but now I've seen it...
0:11:17 > 0:11:19- We think there's more to it.- Yes.
0:11:20 > 0:11:24Stricter rules by mortgage lenders now mean it is much trickier
0:11:24 > 0:11:27to flip a property, with many insisting it's to be owned for
0:11:27 > 0:11:32six months, so unless you can find a wealthy cash buyer, beware.
0:11:32 > 0:11:35Orvis has taken this into account
0:11:35 > 0:11:38and plans on an 8 to 12 week renovation schedule.
0:11:40 > 0:11:44- Who's going to do this job for you? - We have a friend. He's a builder.
0:11:44 > 0:11:49He's got a company and his own team, basically.
0:11:49 > 0:11:53- He'll be the one...- Carrying out the work.- Carrying out the work.
0:11:53 > 0:11:56So who's going to be choosing all the fun bits?
0:11:56 > 0:12:00How involved are you going to get? Ah, there you go, a little smile.
0:12:01 > 0:12:04What part are you going to play?
0:12:04 > 0:12:09I'll be looking for kitchens, bath tiles, that kind of stuff,
0:12:09 > 0:12:11- I'll be choosing that. - And are you happy with that?
0:12:11 > 0:12:14- Yeah, sure, I have no other option. - You've got no option?
0:12:14 > 0:12:17No, I was just kidding. We're going to choose it together. Definitely.
0:12:17 > 0:12:21Yeah, we'll probably go with Farima's taste because she's really
0:12:21 > 0:12:25- good at choosing the right stuff. - Thank you.
0:12:25 > 0:12:28Well, I'm so excited to see the outcome and see what you do here.
0:12:28 > 0:12:30I'm sure it's going to look amazing. Lovely to meet you.
0:12:30 > 0:12:32- Thank you, you too.- Thank you.
0:12:34 > 0:12:39So Orvis and Farima have wonderful plans for this place and I am just
0:12:39 > 0:12:42so glad they're not going to scrimp and save.
0:12:42 > 0:12:45They need to stun those potential buyers.
0:12:45 > 0:12:47Find out if they do, later in the show.
0:12:50 > 0:12:54MUSIC: Greensleeves
0:12:59 > 0:13:02This is the Friar Gate area in the city of Derby.
0:13:04 > 0:13:07Its name comes from a Dominican friary that existed here
0:13:07 > 0:13:10until King Henry VIII saw fit to abolish it
0:13:10 > 0:13:13during his dissolution of the monasteries.
0:13:13 > 0:13:14But, by the 18th century,
0:13:14 > 0:13:17this was the place to be for the well-to-do and many
0:13:17 > 0:13:22of the magnificent Georgian streets and houses built then remain today.
0:13:23 > 0:13:27Friar Gate is populated with plenty of bars, restaurants and nightclubs
0:13:27 > 0:13:31so is proving popular with students and young professionals alike.
0:13:32 > 0:13:36The property I'm here to see is walking distance from both
0:13:36 > 0:13:37Derby city centre and Friar Gate
0:13:37 > 0:13:41and it's certainly eye-catching from the outside.
0:13:41 > 0:13:44It's this three-storey Edwardian town house.
0:13:44 > 0:13:48Had a guide price of £78,000 plus. Let's take a look.
0:13:52 > 0:13:56Well, one of the first things I'd want to check for is double glazing,
0:13:56 > 0:14:00otherwise noise from a busy main road could be a bit of an issue,
0:14:00 > 0:14:02but you've this entrance area here
0:14:02 > 0:14:05and a front room there and through to a rear sitting-room.
0:14:07 > 0:14:10Now, I say rear sitting-room but that immediately begs a question
0:14:10 > 0:14:15because this house has previously been used as a house
0:14:15 > 0:14:19of multiple occupation, as in more than one room rented out.
0:14:19 > 0:14:21That front room was one room, this,
0:14:21 > 0:14:26I believe, was a living room area and then it carries on.
0:14:26 > 0:14:30But, you need to decide fairly early on what you're going to do with
0:14:30 > 0:14:33this because if you wanted to maximise your return,
0:14:33 > 0:14:36then possibly you'd make this into another bedroom.
0:14:36 > 0:14:39The things you need to consider though, is the number of people
0:14:39 > 0:14:41and the number of facilities that they require.
0:14:41 > 0:14:43There's some fairly strict guidelines on this
0:14:43 > 0:14:46and even comes down to things like the number of cookers,
0:14:46 > 0:14:50the numbers of refrigerators, etc and the amount of space.
0:14:50 > 0:14:53This is the kitchen. As you can see, it's not exactly ideal.
0:14:53 > 0:14:56It's all wiggly woggly to get to it then you get here,
0:14:56 > 0:14:58it's a bit cramped and horrible.
0:14:58 > 0:15:01I think you could enhance this dramatically by taking out
0:15:01 > 0:15:04this wall which currently separates the kitchen from this little
0:15:04 > 0:15:06utility area where the boiler is.
0:15:06 > 0:15:09A bit of jiggery-pokery you could do but I think you'd then create
0:15:09 > 0:15:12a really nice sized kitchen here which could then compensate possibly
0:15:12 > 0:15:19for turning that into a bedroom and losing that sort of communal area.
0:15:19 > 0:15:20Something to consider.
0:15:20 > 0:15:21Look at the numbers,
0:15:21 > 0:15:25get your architect to check about taking out things like this wall.
0:15:25 > 0:15:28Then just mull it over.
0:15:28 > 0:15:29# Let me think about it
0:15:32 > 0:15:35# Let me think about it... #
0:15:37 > 0:15:40And having mulled it over, I've concluded that you won't, in fact,
0:15:40 > 0:15:44be able to turn that rear sitting room into a bedroom after all.
0:15:44 > 0:15:48The position of the stairwell means this communal area
0:15:48 > 0:15:51is your only feasible access route to the kitchen, so you're going to
0:15:51 > 0:15:56have to keep that as a sitting room so your tenants will appreciate it.
0:15:56 > 0:15:59Let's see what's on offer upstairs.
0:15:59 > 0:16:02Well, whatever you do with this property,
0:16:02 > 0:16:05one thing you are going to have to focus on is the bathroom
0:16:05 > 0:16:07situation because there is currently only one.
0:16:07 > 0:16:11Clearly if you're renting out as an HMO, you're going
0:16:11 > 0:16:13to have to have more than one toilet and bathroom.
0:16:13 > 0:16:17Some of the options you might want to consider though, could be
0:16:17 > 0:16:20converting it back into one house, maybe converting it into flats.
0:16:20 > 0:16:23The HMO option is definitely worth pursuing
0:16:23 > 0:16:25because in terms of potential return on investment,
0:16:25 > 0:16:30getting £50, £60 a week per room if you went that route,
0:16:30 > 0:16:35£300 a week, £1,200 a month, sounds pretty good to me.
0:16:35 > 0:16:39On this floor, you've got two reasonable sized bedrooms then
0:16:39 > 0:16:41up that little staircase to the top floor,
0:16:41 > 0:16:44where you've got two additional attic bedrooms
0:16:44 > 0:16:47and all these upper rooms have basins plumbed in.
0:16:47 > 0:16:49Very handy for an HMO.
0:16:49 > 0:16:53Added to the front room downstairs, that gives you five rooms
0:16:53 > 0:16:56you could rent out separately and I think, if done to a good standard
0:16:56 > 0:17:00and after turning the sitting, kitchen and utility area
0:17:00 > 0:17:02into a much more friendly communal space,
0:17:02 > 0:17:06you could ask £65 per week per room.
0:17:06 > 0:17:10But before getting carried away with the numbers, there's work to do.
0:17:13 > 0:17:15Well, one thing which is really important
0:17:15 > 0:17:18when you take on a project like this, is to engage the professionals
0:17:18 > 0:17:22and also the local authorities at the earliest possible stage.
0:17:22 > 0:17:25And by that I don't only mean builders
0:17:25 > 0:17:28and architects or the local planners, I also mean
0:17:28 > 0:17:31the local fire department because they'll come along and give an
0:17:31 > 0:17:34assessment of what you need to do to make this building fire compliant.
0:17:34 > 0:17:36- That's very... - FIRE ENGINE SIREN WAILS
0:17:36 > 0:17:38I think they're on the way now!
0:17:38 > 0:17:42That's very important when it comes to an HMO.
0:17:42 > 0:17:45You'll need things like fire alarms, fire extinguishers
0:17:45 > 0:17:47and in this case, maybe even a separate fire escape
0:17:47 > 0:17:49from the upper parts of the building.
0:17:49 > 0:17:51Engage them early on.
0:17:51 > 0:17:54They'll give you that advice and then you can do it right.
0:17:54 > 0:17:56# Come on baby make it right
0:17:56 > 0:18:02# So we can make this groove swing... #
0:18:02 > 0:18:05There is plenty to consider here but if you were to bag it
0:18:05 > 0:18:10for anything near the £78,000 guide price, you could be laughing.
0:18:10 > 0:18:14Oh, and did I mention the building won a civic award for its design?
0:18:14 > 0:18:18It's all sounding and looking mighty promising for this place
0:18:18 > 0:18:21but what did the auctioneer who sold it think?
0:18:21 > 0:18:23We invited him round to find out.
0:18:25 > 0:18:28This particular block of property, it is not your normal
0:18:28 > 0:18:30terraced type house.
0:18:30 > 0:18:31It's got a very striking elevation
0:18:31 > 0:18:34and facade to it which is rather pleasant.
0:18:34 > 0:18:38I suppose the negatives of the property are now where it is
0:18:38 > 0:18:40located because the street that we're on, has now become
0:18:40 > 0:18:45part of Derby's inner ring road, so it's very heavily trafficked
0:18:45 > 0:18:48and parking is at a premium.
0:18:48 > 0:18:52So, positives and negatives but how about this property's history
0:18:52 > 0:18:53and its future?
0:18:55 > 0:18:59The property was built in 1907 so it's a genuine Edwardian house
0:18:59 > 0:19:01and, of course, in its heyday, it would
0:19:01 > 0:19:03have been a fashionable town house as a single residence.
0:19:03 > 0:19:08It's not going to be that again so in later history, it's become
0:19:08 > 0:19:10a house in multiple occupation.
0:19:10 > 0:19:15Every room here has got a washbasin in it, so it's been let out
0:19:15 > 0:19:19as a shared house, separate rooms, for a variety of different purposes.
0:19:19 > 0:19:25I suppose now it would be suited ideally to student accommodation.
0:19:25 > 0:19:28The auctioneer felt that by turning it back into a home or
0:19:28 > 0:19:30converting it into flats,
0:19:30 > 0:19:34your outlay would negate any additional profit, so sticking
0:19:34 > 0:19:37with the HMO usage once the property had been upgraded
0:19:37 > 0:19:39and all regulations met,
0:19:39 > 0:19:43what did he think the potential financial returns would be?
0:19:43 > 0:19:47You'd have a gross income of somewhere around £17,000 a year.
0:19:47 > 0:19:53Take off your bills, 2,000, 2,500, 14,500, £15,000 net income.
0:19:53 > 0:19:56On an investment basis,
0:19:56 > 0:20:01the property would have a value of between 140 and £150,000.
0:20:01 > 0:20:06The £70,000 figure is based on full-year occupancy
0:20:06 > 0:20:08so if you want to do this properly,
0:20:08 > 0:20:13you have to think about how rooms lying empty may affect your sums.
0:20:13 > 0:20:16Well, there's a little bit of work required to sort this place out
0:20:16 > 0:20:19but definitely worth it because, get it right,
0:20:19 > 0:20:22and it could be a great little earner.
0:20:22 > 0:20:24Let's see who fancies it when it went under the hammer.
0:20:27 > 0:20:30Lot number seven is freehold and vacant.
0:20:30 > 0:20:34Start me on this where you will at 80,000 for it. £80,000.
0:20:34 > 0:20:3875, 75, I have in the centre. Thank you.
0:20:38 > 0:20:40At £75,000, the opening bid.
0:20:40 > 0:20:4575,000, 76 is bid. At 76, 77?
0:20:45 > 0:20:49The auction became a battle of wills between two bidders
0:20:49 > 0:20:53and we rejoin them as the price hits £98,000.
0:20:53 > 0:21:0198,500, 99,500, 100,500,
0:21:01 > 0:21:06101? 101,500 at the back of the room.
0:21:06 > 0:21:14102. 102. Out against you at the back. 500. 103. 500.
0:21:14 > 0:21:18103,500, £103,500 once,
0:21:18 > 0:21:24£103,500 twice, all done at 103,500.
0:21:24 > 0:21:27Sold at the back. 278. Thank you.
0:21:29 > 0:21:34That successful bid of £103,500 was made by Graham
0:21:34 > 0:21:37who was at the auction with daughter-in-law, Louise.
0:21:37 > 0:21:42She's sharing the good news with Graham's son, Simon, but it was his
0:21:42 > 0:21:46other son, Andy, who joined him at the property to meet me for a chat.
0:21:48 > 0:21:51Graham, Andy, great to meet you both. Congratulations.
0:21:52 > 0:21:57Well, a place with possibilities. Tell me why you wanted to buy it?
0:21:57 > 0:22:01- Well, looking now, not entirely sure.- Oh, dear.
0:22:01 > 0:22:08Just the prospect of, you know, it's a good earner really. Five bedrooms.
0:22:08 > 0:22:11This will be the fifth property we've undertaken.
0:22:11 > 0:22:14There's a bit more to do here to get to HMO standards
0:22:14 > 0:22:17and probably looking at a fire escape out of the kitchen etc,
0:22:17 > 0:22:18but it'll be done.
0:22:18 > 0:22:22Is this something which you do together and have done so before?
0:22:22 > 0:22:24Tell me about the relationship here.
0:22:24 > 0:22:29Well, it's normally myself and my brother that do all the graft.
0:22:29 > 0:22:32- My dad can't help himself. He usually comes...- Interfering.
0:22:32 > 0:22:37- Yes, interfering.- Charming, that is, isn't it?- It's a family turnout.
0:22:37 > 0:22:40- The women turn out. - They come along. And the kids.
0:22:40 > 0:22:43- Literally get stuck in. - Is it harmonious?
0:22:43 > 0:22:46Yes, 90% of the time.
0:22:47 > 0:22:49Well, 90% beats most.
0:22:49 > 0:22:52Graham's other son, Simon, also does the paperwork
0:22:52 > 0:22:54and property management side of things.
0:22:54 > 0:22:58Graham used to work in the railway industry but has since built
0:22:58 > 0:23:01up an extensive background in construction and renovation.
0:23:01 > 0:23:05Andy runs his own door and window fitting business
0:23:05 > 0:23:08so they are well prepared for the job at hand here.
0:23:09 > 0:23:13- So, tell me what you're going to do to it then.- Fire away.
0:23:13 > 0:23:16Well, obviously needs...
0:23:16 > 0:23:18The windows are all right but we'll rip all of them out,
0:23:18 > 0:23:24- put new in, wood chip off. See what we find.- Ha!- It's everywhere.
0:23:24 > 0:23:25All go back to neutral colours,
0:23:25 > 0:23:28- new carpets.- Skim up as required.
0:23:28 > 0:23:32New kitchen, new boiler, check the electrics out, possibly...
0:23:32 > 0:23:38Fire alarm system seems to be in place but check it all out.
0:23:38 > 0:23:40And so a full and thorough job lies ahead
0:23:40 > 0:23:44and they are planning a spend of £15,000.
0:23:44 > 0:23:48Best of all, their top limit at the auction was 120,000
0:23:48 > 0:23:53and since they got it for 103,500, their renovation money is
0:23:53 > 0:23:57already taken care of with a little room for manoeuvre. Result.
0:23:57 > 0:24:01They want to get the place ready for renting in three months.
0:24:03 > 0:24:06- Listen, congratulations. - Thank you.- Good luck with it.
0:24:06 > 0:24:10- Look forward to seeing how you get on.- Thank you very much, yeah.
0:24:10 > 0:24:14So, Andy and Graham recognising the potential of this place
0:24:14 > 0:24:18and they have a plan. Will they stick to it?
0:24:18 > 0:24:21You can find out later in the show.
0:24:21 > 0:24:24Still to come, a Northumberland property that could make you
0:24:24 > 0:24:26happy or blue.
0:24:26 > 0:24:30It might not be to everyone's taste but it makes you smile.
0:24:32 > 0:24:33Back in Derby,
0:24:33 > 0:24:37how are family ties faring under the pressure of turning a profit?
0:24:37 > 0:24:41- There's moments.- We had a few heated debates.- As you do.
0:24:44 > 0:24:46But first to Chiswick, London. Did Orvis and Farima
0:24:46 > 0:24:50inject this one bed with wow?
0:24:50 > 0:24:51I love it, we love it.
0:24:58 > 0:25:01It was in the exclusive West London area of Chiswick that we
0:25:01 > 0:25:03first saw a one bedroomed flat.
0:25:05 > 0:25:09Situated in a rather elegant building, this top floor flat lacked
0:25:09 > 0:25:13the wow and pizzazz that was needed to draw in the local clientele
0:25:13 > 0:25:16and make them want to climb the stairs to reach the flat's door.
0:25:20 > 0:25:23Even though it had a pleasant communal garden,
0:25:23 > 0:25:28it also had a whopping two grand service charge.
0:25:28 > 0:25:31But with light, airy, spacious rooms, the flat also had
0:25:31 > 0:25:33the framework to potentially dazzle
0:25:33 > 0:25:37and that is what London-based couple Orvis and Farima thought
0:25:37 > 0:25:42when they bought it at auction for £318,000
0:25:42 > 0:25:45as their first property developing project together.
0:25:47 > 0:25:50So who's going to be choosing all the fun bits?
0:25:50 > 0:25:55How involved are you going to get? Ah, there you go, a little smile.
0:25:55 > 0:25:57So what part are you going to play?
0:25:57 > 0:26:02I'll be looking for kitchens, bath tiles, you know, that kind of stuff.
0:26:02 > 0:26:04- I'll be choosing that. - Are you happy with that?
0:26:04 > 0:26:06Yeah, sure, I have no other option.
0:26:06 > 0:26:09So with Farima in charge of providing the wow factor
0:26:09 > 0:26:15and Orvis overseeing the building team and a budget of 40 to 45,000,
0:26:15 > 0:26:17they were hoping in 8 to 12 weeks
0:26:17 > 0:26:20to make this upper floor flat top notch.
0:26:24 > 0:26:28And now, just under three months later,
0:26:28 > 0:26:30we're back with Orvis and Farima to see how they got on.
0:26:35 > 0:26:38Wow, pretty well I'd say.
0:26:56 > 0:27:00As you see, the whole thing has changed and it looks spacious,
0:27:00 > 0:27:04bright, lovely. I love it. We love it.
0:27:04 > 0:27:05Yes, I agree.
0:27:05 > 0:27:09I like what I see too, but how is the key selling point,
0:27:09 > 0:27:10the kitchen, looking?
0:27:13 > 0:27:17Wow, that's more like it. Hi spec and smooth, super chic.
0:27:20 > 0:27:26We love the kitchen. The colour, we love it. The worktop is great.
0:27:26 > 0:27:28The best part of the flat is the kitchen.
0:27:33 > 0:27:35Well, I'm so impressed.
0:27:35 > 0:27:40They really moved this flat up a notch or two and then some.
0:27:40 > 0:27:44They've also found clever ways of maximising the space.
0:27:44 > 0:27:48One side of the bedroom, there was basically a false wall
0:27:48 > 0:27:51which had an entrance through the bathroom
0:27:51 > 0:27:54and there was a huge water tank inside it.
0:27:54 > 0:27:57We removed that wall and that created a really big
0:27:57 > 0:27:59space in the bedroom.
0:27:59 > 0:28:02The end result was definitely smooth and sophisticated,
0:28:02 > 0:28:06but getting there wasn't quite so smooth with floors, ceilings
0:28:06 > 0:28:10and pipe works proving to be fiddly to work on in the roof space.
0:28:10 > 0:28:14What about working together? Did that go smoothly?
0:28:14 > 0:28:20Farima chose the bathroom so it's basically her selection.
0:28:21 > 0:28:23That's why it's beautiful.
0:28:23 > 0:28:25The kitchen also was both of us
0:28:25 > 0:28:29but it was mainly again I went with her decision.
0:28:29 > 0:28:33We have tried to go for top quality on everything.
0:28:35 > 0:28:39Not hugely expensive but top quality in a reasonable way.
0:28:41 > 0:28:44Ah, but did that approach keep the budget in check?
0:28:46 > 0:28:48We wanted to spend about £45,000.
0:28:48 > 0:28:51We were happy to go up to £60,000 just simply
0:28:51 > 0:28:58because we knew the areas that might need extra attention.
0:28:58 > 0:29:03It did actually cost just under £60,000, 59,000 or 59,500.
0:29:06 > 0:29:12Well, a £60,000 spend on top of their 318,000 purchase price
0:29:12 > 0:29:18takes their total investment to 378,000 without costs and fees.
0:29:18 > 0:29:21So will their high spec renovation pay dividends?
0:29:21 > 0:29:24What did two local estate agents think?
0:29:25 > 0:29:27Coming back to this flat today,
0:29:27 > 0:29:31I am absolutely overwhelmed with the progress that has been made.
0:29:31 > 0:29:33Everything is high quality.
0:29:33 > 0:29:36The kitchen, the bath, the shower, the tiles, the flooring,
0:29:36 > 0:29:38the lighting.
0:29:38 > 0:29:40This really is a magnificent property and something
0:29:40 > 0:29:44that they should be very, very proud of what they've achieved.
0:29:44 > 0:29:46My first impressions of the property is that it's done to a very
0:29:46 > 0:29:47high standard.
0:29:47 > 0:29:51The condition is very good and I like the contemporary finish that
0:29:51 > 0:29:54they've put into the property. The kitchen is very stylish, very nice.
0:29:54 > 0:29:57The appliances are all integrated, very clean lines,
0:29:57 > 0:29:59lovely views over the communal gardens.
0:29:59 > 0:30:00It's a very nice kitchen indeed.
0:30:02 > 0:30:06They really want to sell the flat on. In fact, they've already got it
0:30:06 > 0:30:10on the market but if it didn't sell, what rental returns might they see?
0:30:12 > 0:30:15If I was to place this on the market for rental,
0:30:15 > 0:30:19I would expect to achieve a rental of around £1,700 per calendar month.
0:30:19 > 0:30:22If I was to put the property on the market for rental,
0:30:22 > 0:30:23I would put it on for £1,700,
0:30:23 > 0:30:27to achieve between £1,650 and £1,700 per calendar month.
0:30:27 > 0:30:31The rental figure, around £1,650 per calendar month,
0:30:31 > 0:30:34would achieve a yield of around 5%.
0:30:34 > 0:30:36So what do they make of that?
0:30:37 > 0:30:41- It's always good to know because just in case it doesn't sell...- Yeah.
0:30:42 > 0:30:45..there's a second option but we very much doubt it.
0:30:45 > 0:30:49We just want to sell it and move on.
0:30:50 > 0:30:56Yep, resale is the name of the game so, having spent £378,000,
0:30:56 > 0:30:59can this flat achieve sky-high values?
0:30:59 > 0:31:02I would market it for £520,000,
0:31:02 > 0:31:05with a view to achieving around the £500,000 level.
0:31:05 > 0:31:09Purely above that, you're going to the next level of stamp duty.
0:31:09 > 0:31:13I would put this property on the market for around £520,000,
0:31:13 > 0:31:14to achieve around that figure.
0:31:14 > 0:31:20- Oh. 520.- That is great.- Oh, yeah. - Even better than what we thought.
0:31:22 > 0:31:26Yes, anywhere around the £500,000 mark would see a fantastic
0:31:26 > 0:31:30potential pre-tax profit in excess of £100,000.
0:31:32 > 0:31:36So, sky-high indeed. Not bad for their first joint effort.
0:31:36 > 0:31:38They've done a great job!
0:31:38 > 0:31:40So, I'm guessing they might want to do more...?
0:31:42 > 0:31:45- Can you work with me again? - Definitely, yes.
0:31:46 > 0:31:49- That's the plan for the future. - It is the plan for the future.
0:31:49 > 0:31:53So, very soon... We've already started looking for another one
0:31:53 > 0:31:55because we think this will sell very soon.
0:31:55 > 0:31:59I think neither of us would have been able to do it on our own,
0:31:59 > 0:32:02so it was something between us.
0:32:02 > 0:32:06- Yes.- Definitely do it again. - Definitely, yes
0:32:09 > 0:32:13I'm in the bustling port town of Blyth on the stunning
0:32:13 > 0:32:16Northumberland coast.
0:32:16 > 0:32:19Now, since the demise of the coal and shipbuilding industries,
0:32:19 > 0:32:23things around here have been tough but the port itself is still
0:32:23 > 0:32:28very active, handling over 1.5 million tonnes of cargo every year.
0:32:30 > 0:32:33Goods such as paper and pulp from Scandinavia,
0:32:33 > 0:32:37which goes on to supply the newspaper industry, lands here.
0:32:37 > 0:32:41In recent years, a £3 million investment in the port
0:32:41 > 0:32:45and the town of Blyth have given the whole place a new lease of life
0:32:45 > 0:32:49and wherever you have this sort of regeneration going on, you can
0:32:49 > 0:32:52usually be sure it's a good place to invest in property.
0:32:54 > 0:32:58Well, the property I'm here to see could leave you purring with delight.
0:32:58 > 0:33:02It's described in the auction catalogue as a substantial
0:33:02 > 0:33:07mid-terrace with three spacious bedrooms. Is it the cat's whiskers?
0:33:08 > 0:33:13That guide price of £54,950 could be purr-fect for someone.
0:33:15 > 0:33:20Well, looks like it might be. Yeah, nice entrance area here.
0:33:20 > 0:33:23Stairs up to your bedrooms there and immediately,
0:33:23 > 0:33:26it seems a lot bigger than it does from the outside.
0:33:28 > 0:33:31Through into your front lounge.
0:33:31 > 0:33:35Look at this. A really nice sized space...
0:33:35 > 0:33:37definitely. Whoa!
0:33:39 > 0:33:42The fire might be a candidate for modernisation.
0:33:42 > 0:33:46It's a personal taste thing and the decor the same.
0:33:46 > 0:33:49But this place looks as though it has been well cared for and wouldn't
0:33:49 > 0:33:53require too much work if you wanted to turn the property around quickly.
0:33:55 > 0:33:58Well, the kitchen, that looks fantastic.
0:33:58 > 0:34:00You could move into that tomorrow.
0:34:00 > 0:34:03As pretty much you could all of the house I've seen so far.
0:34:03 > 0:34:06This is the rear, sort of living area.
0:34:06 > 0:34:09You know, I've been in properties that have been done up
0:34:09 > 0:34:13which are in worse condition than this. Ah!
0:34:13 > 0:34:15Onwards and upwards.
0:34:16 > 0:34:19Upstairs, there are three bedrooms.
0:34:19 > 0:34:20Two are very spacious.
0:34:20 > 0:34:24One at the back and one at the front, both with good storage.
0:34:27 > 0:34:30The third is smaller but I think this is an ideal house for a family.
0:34:32 > 0:34:37# Well, I've got blue music on the old jukebox
0:34:39 > 0:34:43# Blue teardrops on the table top
0:34:44 > 0:34:50# Blue whisky in every glass I pour
0:34:50 > 0:34:54# Lord, I've never been this blue before... #
0:34:55 > 0:34:58I feel like one of those Greek statues sitting here.
0:34:59 > 0:35:06It was all so sort of normal until I came into the bathroom here.
0:35:06 > 0:35:08What can you say?
0:35:08 > 0:35:14Well, it might not be to everyone's taste but it makes you smile.
0:35:15 > 0:35:17Indeed it does.
0:35:17 > 0:35:21It's all a bit, well, blue but it is big and perfectly serviceable
0:35:21 > 0:35:22if you plan to rent out.
0:35:22 > 0:35:25Why bother to fix something that ain't actually broke?
0:35:25 > 0:35:29In terms of auction properties, I would say this deserves a gold star.
0:35:31 > 0:35:33# She's a star. #
0:35:35 > 0:35:39Now, so often when you come out to the rear of these properties,
0:35:39 > 0:35:41you find a complete disaster.
0:35:41 > 0:35:46However, in this case, absolutely not. Looks pretty good to me.
0:35:46 > 0:35:47Yeah, that's great news.
0:35:47 > 0:35:50The other bit of good news is this little courtyard area.
0:35:50 > 0:35:53It's quite large but even better than that,
0:35:53 > 0:35:56you've got a set of double gates leading out onto an access road
0:35:56 > 0:36:00at the back, so this is car parking or whatever you wanted to be.
0:36:00 > 0:36:02Brilliant.
0:36:04 > 0:36:07This property could be a really nice investment, especially
0:36:07 > 0:36:12if you were to get it for anywhere near that £54,950 guide price.
0:36:13 > 0:36:17We asked along a local property expert for her opinion.
0:36:18 > 0:36:21To be honest, the property doesn't need much work at all.
0:36:21 > 0:36:23It's got double glazing. It does have gas central heating.
0:36:23 > 0:36:27It would depend on whoever the buyer is whether they change the boiler or not.
0:36:27 > 0:36:31It's got some nice features such as the deep skirting boards
0:36:31 > 0:36:35coving, ceiling roses, so it is quite an attractive property.
0:36:35 > 0:36:36So, a decent first impression,
0:36:36 > 0:36:39and what are her thoughts on the resale value?
0:36:39 > 0:36:42I think there's not a lot you can do with this property to add value.
0:36:42 > 0:36:45However, I think with a lick of paint, brightening it up,
0:36:45 > 0:36:49the most you will achieve the area is going to be around the £65,000.
0:36:49 > 0:36:53What does she reckon the property would fetch on the rental market?
0:36:53 > 0:36:57Three-bedroom, nice condition in this area, you're probably
0:36:57 > 0:36:59looking at around £450 per month rental.
0:37:00 > 0:37:04Well, what a fantastic house this is. What a find.
0:37:04 > 0:37:08One of those auction nuggets that if you search hard enough for,
0:37:08 > 0:37:10you will find every now and then.
0:37:10 > 0:37:14Let's see who was panning for the right bit of gold in this
0:37:14 > 0:37:16instance when it went to auction.
0:37:20 > 0:37:23Substantial mid-terrace, close to the town centre amenities.
0:37:23 > 0:37:24Any bids for 50?
0:37:24 > 0:37:28The auctioneer reduces the guide price in order to entice
0:37:28 > 0:37:31a bid for those who have stayed towards the end of the auction.
0:37:31 > 0:37:34How about 48? No bids?
0:37:35 > 0:37:3848 on one of the telephones. £48,000.
0:37:38 > 0:37:41We are off and going. 49 anywhere else?
0:37:41 > 0:37:43I've one telephone bid of £48,000.
0:37:43 > 0:37:4649, the person in the tracksuit at 49. 50?
0:37:48 > 0:37:51Gentlemen in the hoodie at 49,000.
0:37:51 > 0:37:5350,000? I'm in the room at 49.
0:37:53 > 0:37:5850,000 on the telephone. 51? 51 bid. 52?
0:37:59 > 0:38:02I am in the room at... 52 bid on the telephone.
0:38:02 > 0:38:0553? 53 bid. 54?
0:38:06 > 0:38:11I am in the room at 54,000. I am here at £54,000.
0:38:11 > 0:38:15Try another one? 500? 500 bid.
0:38:15 > 0:38:1854,500. 500 from you.
0:38:19 > 0:38:21500. 55. I'm here and selling at 55.
0:38:21 > 0:38:2355,000 on the telephone.
0:38:23 > 0:38:26Do I have 500 anywhere else?
0:38:26 > 0:38:31I'm selling at once at 55, for the second time at £55,000...
0:38:31 > 0:38:33Sold on the telephone.
0:38:34 > 0:38:37Zoe was the successful bidder at the other end of the line
0:38:37 > 0:38:42who got this for £55,000, just a smidgen over the guide price.
0:38:42 > 0:38:46Unfortunately, she was unable to meet me but luckily, her family
0:38:46 > 0:38:50are very much to the fore on this project, so her dad, Trevor, and
0:38:50 > 0:38:54her aunt, Mandy, came along to tell us about Zoe and her new property.
0:38:56 > 0:38:59- Trevor, Mandy, great to meet you both.- Nice to meet you, Martin.
0:38:59 > 0:39:02Now listen, you have to start off by explaining what is going on here
0:39:02 > 0:39:06- because this is a major family thing, isn't it?- It is, yes.
0:39:06 > 0:39:09It's a project of my daughter, Zoe.
0:39:10 > 0:39:15- She... In 2010, she had an accident on Christmas Day.- No!
0:39:15 > 0:39:20She was knocked down by another vehicle, put on life support.
0:39:20 > 0:39:23She has come through it. She had a fractured pelvis.
0:39:23 > 0:39:28She's still got some...disabilities but this has helped her to...
0:39:29 > 0:39:31..kick-start her life again.
0:39:31 > 0:39:34Sounds like she's lucky to be alive.
0:39:34 > 0:39:40- Yes, she is lucky. Even the doctors said that. But...- But she is!
0:39:40 > 0:39:44Every cloud has... This is her silver lining.
0:39:44 > 0:39:46This is something which she can...
0:39:46 > 0:39:50- This is going to be her career and her future.- Terrific.
0:39:50 > 0:39:53Zoe and her family are clearly really positive
0:39:53 > 0:39:56and I think this is a great project to tackle.
0:39:56 > 0:40:00West Sussex-based Zoe is a former contracts manager
0:40:00 > 0:40:01and is putting up most of the money
0:40:01 > 0:40:05and will manage the project with family lending a helping hand.
0:40:07 > 0:40:11My daughter used to live next door and when Zoe mentioned it,
0:40:11 > 0:40:15I was shocked and I said, "Yeah, it's absolutely gorgeous."
0:40:15 > 0:40:19I said it's, you know... The outside and obviously seeing from my
0:40:19 > 0:40:23daughter's bedroom and the garden, you couldn't really see inside.
0:40:23 > 0:40:28I said it was lovely. And then Zoe asked me to come and have a look.
0:40:28 > 0:40:32- And, yeah, really fell in love with it.- It's a great house indeed.
0:40:32 > 0:40:34What happens now?
0:40:34 > 0:40:37What is the project plan and how is all that going to work?
0:40:37 > 0:40:41It's to give it a make over.
0:40:41 > 0:40:45There's nothing structural that needs to be done to it.
0:40:45 > 0:40:49Get the electrics checked, the gas checked and just brighten
0:40:49 > 0:40:53the place up and then put it out there for the rental market.
0:40:53 > 0:40:56What kind of budget have you got then to do what you are going to do?
0:40:56 > 0:41:00Zoe's budget was £3,000-£4,000 but I think
0:41:00 > 0:41:02she will probably do it for less.
0:41:02 > 0:41:05That sounds like a fair budget and hopefully, they will not feel
0:41:05 > 0:41:08the need to change this little gem of a property.
0:41:08 > 0:41:11Well, actually, having said that...
0:41:11 > 0:41:13What about the bathroom?
0:41:13 > 0:41:19She said she had considered possibly taking that back to just
0:41:19 > 0:41:23- a freestanding bath.- Yeah. - But she's going to see how it goes.
0:41:23 > 0:41:25Who will do the work?
0:41:25 > 0:41:26The sprucing up, we'll do.
0:41:26 > 0:41:31We are up here for a few days so we will do as much as we can.
0:41:31 > 0:41:34Zoe is hoping to come up in a few weeks' time.
0:41:34 > 0:41:38Spend a week up here with a friend of hers and finish off.
0:41:38 > 0:41:41- What's the timescale then? - A month or two.
0:41:41 > 0:41:44As there is no structural work, just sprucing it up
0:41:44 > 0:41:46and hopefully it can all be done within that time.
0:41:46 > 0:41:48Will you have a hand in the renovations?
0:41:48 > 0:41:52Yes, I will be coming down and helping out
0:41:52 > 0:41:57and workmen... She's got people coming in for the gas and electric
0:41:57 > 0:42:01and all that, she's got professionals coming for that.
0:42:01 > 0:42:05I'll be here to let them in and do what they've got to do.
0:42:05 > 0:42:09What about the ongoing management of the property - tenants
0:42:09 > 0:42:12- and stuff like that? Will you get involved in that?- Yes.
0:42:12 > 0:42:17Yeah. I did with her last property, we done the same.
0:42:17 > 0:42:22People come in and you introduce yourself and speak to them,
0:42:22 > 0:42:24see what they are like.
0:42:24 > 0:42:28Zoe has the last say, obviously, with what it's all about.
0:42:28 > 0:42:31But you vet them as well.
0:42:31 > 0:42:34It's great to hear that everyone is pitching in to help Zoe
0:42:34 > 0:42:36with her new property portfolio,
0:42:36 > 0:42:41as it's not just her career she's having to start from scratch.
0:42:41 > 0:42:43It's her whole life.
0:42:43 > 0:42:47She always used to do horse riding. She used to compete.
0:42:47 > 0:42:51Unfortunately, after her accident, she couldn't...
0:42:52 > 0:42:55..compete for the cup she won the previous year.
0:42:55 > 0:42:59She tried to go back, helping people ride horses and that,
0:42:59 > 0:43:03but she found it very, very difficult to be around horses...
0:43:03 > 0:43:06and not being able to ride.
0:43:06 > 0:43:11What she did, she went to a local place near to where we live, and she
0:43:11 > 0:43:16did volunteer work, helping children, schoolchildren, children with special needs
0:43:16 > 0:43:20- and that to do various activities, outdoor activities.- Oh, right.
0:43:20 > 0:43:23And she got certain qualifications in the various things,
0:43:23 > 0:43:28archery and things like that, to help these kids. She enjoyed that.
0:43:28 > 0:43:32- How do you think she has done here? - Amazing, really. Really has.
0:43:32 > 0:43:35I love the place. It's just lovely.
0:43:35 > 0:43:38As I say, what she paid for it was brilliant.
0:43:40 > 0:43:46We are hoping that it will be done, sorted and rented out very quick.
0:43:46 > 0:43:49Congratulations. Good luck with it.
0:43:49 > 0:43:52Thank you very much. Thank you.
0:43:53 > 0:43:57Well, it's a fairly shocking story and obviously Zoe will have
0:43:57 > 0:43:59been through some fairly tough times of late,
0:43:59 > 0:44:03but thankfully, property, in particular this one,
0:44:03 > 0:44:07is helping her through and onwards to her recovery.
0:44:07 > 0:44:09It is a great house and I'm delighted for her.
0:44:09 > 0:44:13You can find out how she gets on and meet her later in the show.
0:44:17 > 0:44:19Well, time has passed.
0:44:19 > 0:44:22Let's return to find out what's happened to those properties.
0:44:22 > 0:44:25- Are we confident they will look brand-new?- Let's find out.
0:44:26 > 0:44:29We are darting back over to Derby now where earlier,
0:44:29 > 0:44:30I took a look at this -
0:44:30 > 0:44:34a striking and attractive property from the outside,
0:44:34 > 0:44:36but inside was slightly tatty and tired.
0:44:36 > 0:44:40And that tiny kitchen was in desperate need of expansion,
0:44:40 > 0:44:43particularly as this house of multiple occupation
0:44:43 > 0:44:45had five bedrooms.
0:44:45 > 0:44:50Nabbing it for £103,500 was Graham, and it was his sons,
0:44:50 > 0:44:53Andy and Simon, who are going to bring it up to standard.
0:44:53 > 0:44:56Although Simon couldn't come along, Andy did, to tell me
0:44:56 > 0:44:59how this family work like a team, or maybe not.
0:45:03 > 0:45:05Is this something which you do together?
0:45:05 > 0:45:08Have you done so before? Tell me about the relationship here.
0:45:08 > 0:45:12Well, it is normally myself and my brother do all the graft.
0:45:12 > 0:45:17- My dad can't help himself. He usually comes...- Interfering.
0:45:17 > 0:45:20- Yeah, interfering.- That's charming, that is, isn't it?
0:45:20 > 0:45:23It's a family turnout, the women turnout, everybody turns out.
0:45:23 > 0:45:26The wives come along, the kids, everybody, really.
0:45:26 > 0:45:28Is it harmonious?
0:45:28 > 0:45:29Yes, 90% of the time.
0:45:29 > 0:45:31THEY LAUGH
0:45:31 > 0:45:33Well, let's hope they're still laughing
0:45:33 > 0:45:36and that the work's 100% complete.
0:45:36 > 0:45:38It's been a mere four months since I met them,
0:45:38 > 0:45:42and we're back to find out if this HMO is good to go.
0:45:52 > 0:45:55Well, the kitchen is a million miles from what it was.
0:45:55 > 0:45:58You wouldn't know you were in the same place,
0:45:58 > 0:46:02and it's just as well, because this communal kitchen and living room
0:46:02 > 0:46:05is now going to be shared between not five, but six bedrooms.
0:46:07 > 0:46:08The front bedroom's been made over,
0:46:08 > 0:46:11and now has an en suite bathroom.
0:46:14 > 0:46:18Up to the first floor, and what was the main bathroom is now a bedroom.
0:46:18 > 0:46:22And there are still two other bedrooms on this floor, as well,
0:46:22 > 0:46:25one with en suite and a communal shower room
0:46:25 > 0:46:27thanks to a bit of layout rejigging.
0:46:29 > 0:46:31And, lastly, on to the top floor.
0:46:31 > 0:46:34Redecoration throughout, not a bit of wood chip to be seen
0:46:34 > 0:46:38and an additional separate communal shower room.
0:46:38 > 0:46:41And there's been even more to this refurbishment
0:46:41 > 0:46:44than a reshuffle and a lick of paint.
0:46:44 > 0:46:47We renewed the roof on the dormer roof here,
0:46:47 > 0:46:50which was a major problem with the leak,
0:46:50 > 0:46:53which also opened up the wall here.
0:46:53 > 0:46:57A new balustrade, new windows throughout,
0:46:57 > 0:47:01new architrave skirtings, fire doors,
0:47:01 > 0:47:04and there was originally a walkway through
0:47:04 > 0:47:07where we created a shower bathroom,
0:47:07 > 0:47:10which was the entry into the old bedroom there.
0:47:10 > 0:47:14New carpets up here, and that's this floor wrapped up.
0:47:15 > 0:47:18Also wrapped up is the back garden, which has been tidied
0:47:18 > 0:47:22and is now low-maintenance and ideal for tenants.
0:47:22 > 0:47:25The boys have done good and have met all the regulations
0:47:25 > 0:47:29necessary for HMO, and apart from a small snagging list to get
0:47:29 > 0:47:33through in the next couple of days, the rooms are ready to rent.
0:47:33 > 0:47:36What has been the best part of the project?
0:47:36 > 0:47:38- Seeing it completed.- Yeah.
0:47:38 > 0:47:40What we've achieved in the time, it's fantastic.
0:47:40 > 0:47:43Their original timescale was three months
0:47:43 > 0:47:46and has stretched to four, but they have done a lot more
0:47:46 > 0:47:49than they planned, and they put in 14 hour days
0:47:49 > 0:47:51sometimes to get it finished.
0:47:51 > 0:47:54And it seems like everyone and his wife pitched in.
0:47:55 > 0:47:57Well, most of the time it was me,
0:47:57 > 0:48:01Andrew and Simon, my other son, followed up by the wives
0:48:01 > 0:48:04backing us up, painting and decorating,
0:48:04 > 0:48:06and a lot of friends, really.
0:48:06 > 0:48:10We have taken the odd tradesman on, like a plasterer, electrician
0:48:10 > 0:48:14and plumbers, but down to a minimum, really, to keep the expense down.
0:48:14 > 0:48:18Their original budget for the work was £15,000,
0:48:18 > 0:48:21but they've spent £18,200.
0:48:21 > 0:48:24However, they've got a lot of bang for their buck
0:48:24 > 0:48:26and, as the project took a little longer than expected,
0:48:26 > 0:48:30they've missed the current student market, so they're aiming
0:48:30 > 0:48:33for professionals, which could equal better returns.
0:48:33 > 0:48:37And, best of all, family harmony was - mostly - preserved.
0:48:39 > 0:48:43- There were moments.- A few heated debates, but...- As you do.
0:48:44 > 0:48:46And they're still smiling.
0:48:46 > 0:48:49The property cost £103,500,
0:48:49 > 0:48:52and with an £18,200 spend on the work,
0:48:52 > 0:48:57the total spend here has been £121,700.
0:48:59 > 0:49:04We invited a local estate agent and the auctioneer who sold the house
0:49:04 > 0:49:06to check out its new look and layout.
0:49:06 > 0:49:08When I walked in here, I was absolutely bowled over,
0:49:08 > 0:49:11really impressed by the transformation
0:49:11 > 0:49:13these guys have done to it.
0:49:13 > 0:49:15It's so different to what it was before.
0:49:15 > 0:49:19First impressions of the property are it's very nice and modern,
0:49:19 > 0:49:20well designed and well laid out,
0:49:20 > 0:49:24and I'm very impressed with the decor of the property, also.
0:49:24 > 0:49:28There's nothing I would have done differently to what they've achieved
0:49:28 > 0:49:29if the intention from day one
0:49:29 > 0:49:31was always to rent it out as a shared house.
0:49:31 > 0:49:34Because, let's remember, that's the way it was used
0:49:34 > 0:49:37before they bought it, so it was logical in a way.
0:49:37 > 0:49:41And, potentially, it's going to earn good income,
0:49:41 > 0:49:44so I think what they've achieved is actually the best,
0:49:44 > 0:49:46the ultimate out of what was here.
0:49:46 > 0:49:49And now he's mentioned income, let's get some figures.
0:49:49 > 0:49:51How much do the experts think
0:49:51 > 0:49:54Graham and family could rent the rooms here out for?
0:49:55 > 0:49:59This property has massive potential with it having six rooms,
0:49:59 > 0:50:05and I think this property would fetch around the 85 per week, per room,
0:50:05 > 0:50:09fetching in around £25,000 for the whole property.
0:50:09 > 0:50:11I think this would rent out extremely well.
0:50:11 > 0:50:13It's in the right location.
0:50:13 > 0:50:15As always with these city centre fringe properties,
0:50:15 > 0:50:18parking is a bit of an issue.
0:50:18 > 0:50:19You could rent it to students,
0:50:19 > 0:50:23although there's plenty of student accommodation in Derby.
0:50:23 > 0:50:26And you'd get a better income, actually,
0:50:26 > 0:50:28if you let it to professional people,
0:50:28 > 0:50:33and I would think there'd be quite a demand for professionals.
0:50:33 > 0:50:36I suppose you'd rent them out at something like an average
0:50:36 > 0:50:42of £85 per week, per room, including all your bills.
0:50:42 > 0:50:47We'd valued it and got tenants in with the en suites at £100 per week,
0:50:47 > 0:50:51the plain rooms at 85, and we're actually receiving rent
0:50:51 > 0:50:54and we've got people waiting for rooms when they leave, basically.
0:50:56 > 0:50:59So, yeah, they're not that far out, quite pleased with that.
0:50:59 > 0:51:00"Quite pleased!"
0:51:00 > 0:51:03Wait until you hear this - the rooms are in demand
0:51:03 > 0:51:07and going on the assumption they'll all be rented all year round,
0:51:07 > 0:51:11there's a total income of £28,080 per year,
0:51:11 > 0:51:16making an almost unbelievable yield of 27% -
0:51:16 > 0:51:20one of the highest I've ever heard on Homes Under The Hammer.
0:51:20 > 0:51:24There's no wonder Graham has no interest in selling for now,
0:51:24 > 0:51:28although if he was, the experts suggested prices
0:51:28 > 0:51:32of between £135,000 and £155,000.
0:51:32 > 0:51:36That top valuation would give them a profit
0:51:36 > 0:51:39of £33,300 before tax and expenses.
0:51:39 > 0:51:40So, what's next?
0:51:41 > 0:51:44We're going to sit down for a week and discuss it.
0:51:44 > 0:51:46But I'm sure we'll all come to the conclusion that, yes,
0:51:46 > 0:51:49we're going to get another property and continue doing it.
0:51:52 > 0:51:54From pads for professionals
0:51:54 > 0:51:57to a family home here in Blyth in Northumberland.
0:51:57 > 0:52:00This three-bedroom mid-terrace property
0:52:00 > 0:52:03was purchased for £55,000 by Zoe.
0:52:03 > 0:52:06As she wasn't able to meet us when we first visited,
0:52:06 > 0:52:09her father and aunt came along instead.
0:52:09 > 0:52:12Mandy and Trevor explained that Zoe had changed career
0:52:12 > 0:52:16to property development after a serious car accident.
0:52:16 > 0:52:20- In 2010, she had an accident Christmas Day.- No!
0:52:20 > 0:52:25She was knocked down by another vehicle, put on life support.
0:52:25 > 0:52:28She's come through it, she had a fractured pelvis.
0:52:28 > 0:52:31She's still got some...disabilities,
0:52:31 > 0:52:36but this has helped her to kick-start her life again.
0:52:36 > 0:52:38Sounds like she's lucky to be alive.
0:52:38 > 0:52:41Yes, she is, very lucky, even the doctors said that.
0:52:43 > 0:52:45But from...
0:52:45 > 0:52:48every cloud... And this is her silver lining.
0:52:49 > 0:52:52This terrace was in pretty good condition
0:52:52 > 0:52:55and really didn't require a lot of work to get it rental ready.
0:52:55 > 0:52:59Having seen the property via a webcam thanks to Aunt Mandy,
0:52:59 > 0:53:03Zoe was still determined to give the place a bit of zhuzh.
0:53:03 > 0:53:05With the help of family and friends,
0:53:05 > 0:53:07she hoped to do the work within a month or two.
0:53:07 > 0:53:11And it's just four weeks later that we've returned.
0:53:11 > 0:53:14Zoe and Mandy have come along to show us their handiwork.
0:53:21 > 0:53:24OK, not much change here.
0:53:26 > 0:53:27Or here.
0:53:30 > 0:53:33But it does little whiter and brighter.
0:53:33 > 0:53:35There wasn't much to do in this house,
0:53:35 > 0:53:39so I'm keen to find out what Zoe and her family have tackled.
0:53:39 > 0:53:41The bathroom, I hope?
0:53:41 > 0:53:43Oh, yes.
0:53:43 > 0:53:46This room is one of my favourite rooms, it's had the most change.
0:53:46 > 0:53:50It's been lightened, brightened, new floor, bath panel...
0:53:50 > 0:53:54It just does look a lot nicer in here now you've got
0:53:54 > 0:53:57the light reflecting off the white, rather than the dark ceiling,
0:53:57 > 0:54:01and all the blue on the garish side has now gone.
0:54:01 > 0:54:06It's had new flooring, bath panel - I'm really pleased with this room.
0:54:06 > 0:54:09Zoe knew she would have to get the electrics and central heating
0:54:09 > 0:54:14checked out, but the boiler turned out to be an unforeseen expense.
0:54:14 > 0:54:18We only had one complication, which was the boiler.
0:54:18 > 0:54:22That had to be removed and we've updated it with a new combi-boiler.
0:54:22 > 0:54:25The installation of a new boiler means that this fireplace
0:54:25 > 0:54:28does look more appealing, even with no fire.
0:54:28 > 0:54:32This room's had a lick of paint, just to brighten it up again.
0:54:32 > 0:54:36We have removed the gas fire because it had the back boiler.
0:54:36 > 0:54:38Now we've got the new combi-boiler that's not necessary,
0:54:38 > 0:54:42so we've just made it into an ornamental feature place,
0:54:42 > 0:54:44and I'm really, really happy with it.
0:54:44 > 0:54:47It certainly seems brighter and nicer.
0:54:47 > 0:54:51Installing a new boiler took a large chunk out of her budget -
0:54:51 > 0:54:53£2,500, to be precise.
0:54:53 > 0:54:56Luckily, Zoe is taking it all in her stride.
0:54:58 > 0:55:01We have spent 4,500 on the property,
0:55:01 > 0:55:04and that was with the unexpected boiler change.
0:55:04 > 0:55:07There's little changes happened in every single room,
0:55:07 > 0:55:09but it's basically just brightening up and lightening
0:55:09 > 0:55:12and giving it a fresh coat of paint to look a bit nicer.
0:55:12 > 0:55:16The timescale has been only approximately three weeks,
0:55:16 > 0:55:19three to four weeks, so we've been able to get it all done.
0:55:19 > 0:55:21Organisation was key.
0:55:21 > 0:55:23It sure was!
0:55:23 > 0:55:27And, from her base in West Sussex, Zoe managed to find
0:55:27 > 0:55:30and interview tradesmen using video calls and e-mail.
0:55:30 > 0:55:32And she had a bit of help.
0:55:32 > 0:55:35There was lots of people involved, mainly friends and family,
0:55:35 > 0:55:40my auntie, my mum, my dad, my brother, my sister, my cousins...
0:55:40 > 0:55:42and a few friends of mine.
0:55:42 > 0:55:46The house was initially recommended by Zoe's Aunt Mandy,
0:55:46 > 0:55:48who is definitely hands-on.
0:55:48 > 0:55:50I've really enjoyed it.
0:55:50 > 0:55:53Painting, stripping walls, decorating, everything.
0:55:53 > 0:55:56We all mucked in and got as much done.
0:55:56 > 0:55:59I love it, it's a real lovely family home,
0:55:59 > 0:56:04and I just hope, you know, people will be happy here when they move in.
0:56:04 > 0:56:08Was the £4,500 budget on top of the £55,000 purchase price
0:56:08 > 0:56:10money well spent?
0:56:10 > 0:56:14We asked along two local property experts to hear their thoughts.
0:56:14 > 0:56:16I saw this property about a month ago
0:56:16 > 0:56:19and it didn't really need a lot of work at the time.
0:56:19 > 0:56:22It has been freshened up with a fresh lick of paint
0:56:22 > 0:56:25and some little jobs here and there, and it's nice, bright and airy,
0:56:25 > 0:56:27and it's a good standard.
0:56:27 > 0:56:29The look of the finish of the property is very good,
0:56:29 > 0:56:31will appeal to the rental market
0:56:31 > 0:56:34as it is ready for immediate occupation.
0:56:34 > 0:56:36Although she isn't selling just now,
0:56:36 > 0:56:39if Zoe did decide to try the resale market,
0:56:39 > 0:56:41what do the experts think it would get?
0:56:42 > 0:56:46I think if the property was offered for the sale market,
0:56:46 > 0:56:50again, it's in very nice, presentable order,
0:56:50 > 0:56:54I would be recommending an asking price of around £65,000.
0:56:54 > 0:56:58I think, realistically, it's about 60-65. 65 would be the maximum.
0:56:58 > 0:57:02We're happy with that, but that's not really what I'm doing it for,
0:57:02 > 0:57:04it's to go in the portfolio for the rentals.
0:57:04 > 0:57:07That maximum value of £65,000
0:57:07 > 0:57:11set against her total spend of 59,500
0:57:11 > 0:57:17could see Zoe reaching a profit of £5,500 minus taxes and expenses.
0:57:17 > 0:57:20What do the experts think of the rental value?
0:57:20 > 0:57:22I think for a property of this size in this particular area,
0:57:22 > 0:57:25they usually go for around £450 per month.
0:57:25 > 0:57:27I would be recommending
0:57:27 > 0:57:31a rental figure of £450-£475 per calendar month.
0:57:31 > 0:57:34Yeah, that's about right, I think.
0:57:34 > 0:57:38We've got it advertised for 450, so that's what people are on.
0:57:38 > 0:57:42£450 per calendar month would give her a 9% yield.
0:57:42 > 0:57:43That's a pretty decent return
0:57:43 > 0:57:47and a great addition to Zoe's growing portfolio.
0:57:47 > 0:57:49It seems that this new career suits her.
0:57:50 > 0:57:53After the accident, it was a life-changing experience,
0:57:53 > 0:57:56it turned my world upside down, and it made me realise what's
0:57:56 > 0:57:59important in life, and that's doing what makes you happy.
0:57:59 > 0:58:01Cos I really enjoy it, I love what I do now.
0:58:04 > 0:58:07We will have more auction properties for you next time
0:58:07 > 0:58:08to whet your appetite.
0:58:08 > 0:58:11Yes, we hope we've inspired you and given you an insight
0:58:11 > 0:58:14into the auction world here on Homes Under The Hammer.
0:58:14 > 0:58:16- See- you then. Goodbye.- Goodbye.