0:00:02 > 0:00:05- Welcome to Homes Under The Hammer. - Property auctions used to be
0:00:05 > 0:00:07the territory of builders and developers, not any more -
0:00:07 > 0:00:10all sorts of people are realising their potential.
0:00:10 > 0:00:11Even in this difficult market,
0:00:11 > 0:00:14people are still buying their homes under the hammer.
0:00:40 > 0:00:43Even for the most experienced buyers,
0:00:43 > 0:00:46auctions can be exciting and nerve-racking places.
0:00:46 > 0:00:49You have to make sure you don't get carried away.
0:00:49 > 0:00:52Did today's buyers keep a cool head? Did they get some great deals?
0:00:52 > 0:00:53Here's what they bid for.
0:00:56 > 0:00:57Hallelujah.
0:00:57 > 0:01:00In the small village of Stanley in Derbyshire, I found
0:01:00 > 0:01:01a property worthy of praise.
0:01:04 > 0:01:08This house in Lancashire might not be quite so inspirational
0:01:08 > 0:01:13but with what was just a £20,000 guide price, it made my heart sing.
0:01:16 > 0:01:19Follow these three steps and this London flat could make
0:01:19 > 0:01:21a heavenly investment.
0:01:21 > 0:01:24Do it up quick, spend the minimum and let it out fast.
0:01:26 > 0:01:29All these properties have been sold at auction and we'll find out
0:01:29 > 0:01:32who bought them and what they paid for them when they went
0:01:32 > 0:01:33under the hammer.
0:01:33 > 0:01:34It's yours, sir.
0:01:40 > 0:01:43Today I'm in the pretty village of Stanley,
0:01:43 > 0:01:46halfway between Derby and Ilkeston in Derbyshire.
0:01:46 > 0:01:51It's got a pub, a village shop and post office, a primary school,
0:01:51 > 0:01:53everything you could want, really.
0:01:53 > 0:01:55And yet you're close to major road links
0:01:55 > 0:01:58and only 20 minutes away from Derby city centre.
0:02:01 > 0:02:05It's a bit of a soggy day but even on a day like this you can
0:02:05 > 0:02:09see why this is a really popular little place to live.
0:02:09 > 0:02:14The property I am here to see is a fantastic opportunity for somebody.
0:02:14 > 0:02:16It's the former Methodist chapel.
0:02:16 > 0:02:19It had a guide price of £100,000 plus.
0:02:19 > 0:02:21You've got the main chapel area there,
0:02:21 > 0:02:23this little building on the edge.
0:02:23 > 0:02:26Let's go and take a look.
0:02:26 > 0:02:30Built in 1882, this chapel certainly is a striking building
0:02:30 > 0:02:32on the outside.
0:02:32 > 0:02:35But with the only land being this tarmacked area,
0:02:35 > 0:02:37you'll need to get the diggers out if you want to make this
0:02:37 > 0:02:39into a garden.
0:02:41 > 0:02:44Ooh. One good thing about looking around properties in the rain
0:02:44 > 0:02:47is at least you get to see what kind of condition the roof
0:02:47 > 0:02:51and the rainwater goods are in. So far, so good.
0:02:51 > 0:02:53Before we go into the main Methodist chapel,
0:02:53 > 0:02:55let's take a look at this little area here.
0:02:55 > 0:03:00This is formerly a schoolroom. It's one big area.
0:03:00 > 0:03:01Toilet there.
0:03:01 > 0:03:02A little kitchen area.
0:03:02 > 0:03:05Lots of windows, including that nice one at the front there.
0:03:05 > 0:03:08So quite a useful extra space.
0:03:08 > 0:03:10But...the main event!
0:03:12 > 0:03:14This is what we want to see.
0:03:14 > 0:03:16Wow! How about this?
0:03:17 > 0:03:20Yes, it's the former chapel building and extraordinary.
0:03:20 > 0:03:24Lots of windows so lots of natural light. Massively high ceiling.
0:03:25 > 0:03:28Structurally, needs a closer inspection
0:03:28 > 0:03:31but at first glance it seems to be OK.
0:03:31 > 0:03:33No signs of dripping so, thank goodness,
0:03:33 > 0:03:35the roof seems to be in good condition.
0:03:35 > 0:03:38What you've got here is one big shell.
0:03:39 > 0:03:43All you've got to do is just decide what you're going to do with it.
0:03:44 > 0:03:47Nothing can be done without the involvement of the planners,
0:03:47 > 0:03:51as this currently has consent only to function as a place of worship.
0:03:51 > 0:03:53Any plans to turn it into flats,
0:03:53 > 0:03:57a home or commercial premises would be subject to planning consent.
0:03:57 > 0:04:00There is no guarantee that that would be granted.
0:04:02 > 0:04:06It's always sad when places of worship like this close
0:04:06 > 0:04:08or stop operating for whatever reason.
0:04:08 > 0:04:12The reality is somebody will turn this probably into a house or
0:04:12 > 0:04:14some kind of residential opportunity,
0:04:14 > 0:04:16flats maybe, I don't know.
0:04:16 > 0:04:21But with it, I suppose, will go memories of the church
0:04:21 > 0:04:22but hopefully not all of them.
0:04:22 > 0:04:25Look what I've found, this fantastic old Bible,
0:04:25 > 0:04:27which has probably seen
0:04:27 > 0:04:30years of sermons from up here or whatever.
0:04:30 > 0:04:32Look at the illustrations here.
0:04:32 > 0:04:34Absolutely enchanting.
0:04:36 > 0:04:40So...hopefully, whoever takes this place on
0:04:40 > 0:04:42will be sympathetic to what this place once was.
0:04:44 > 0:04:48This isn't a listed building but is in a conservation area
0:04:48 > 0:04:51and as I'm sure you can tell, I love this building.
0:04:51 > 0:04:53For me, it's got that special something.
0:04:55 > 0:04:58# Yeah, you got soul
0:04:58 > 0:05:01# You got soul
0:05:01 > 0:05:02# Yeah
0:05:02 > 0:05:04# You've got soul
0:05:04 > 0:05:07# You got soul... #
0:05:08 > 0:05:13But what does the auctioneer who sold this building think will be
0:05:13 > 0:05:18the best use for this chapel that was guided at £100,000 plus?
0:05:18 > 0:05:21I think its prime use is for conversion into
0:05:21 > 0:05:23a residential dwelling.
0:05:23 > 0:05:24We've got a roof here,
0:05:24 > 0:05:26which is high enough to accommodate
0:05:26 > 0:05:32a first floor, which is fairly key to conversion to a dwelling.
0:05:32 > 0:05:35You'd certainly make a four-bedroomed house out of it.
0:05:35 > 0:05:39A four-bedroomed house could be fantastic but it's not going to be
0:05:39 > 0:05:42an easy conversion and it will need planning permission.
0:05:44 > 0:05:46One of the lovely things about a building like this is
0:05:46 > 0:05:49you can make it into a very individual dwelling
0:05:49 > 0:05:53and pull out some fairly nice and appealing features about it.
0:05:54 > 0:05:56But what would this chapel,
0:05:56 > 0:06:01guided at £100,000 plus, get on the open market in its current state?
0:06:03 > 0:06:05Its value is what you see in its potential.
0:06:05 > 0:06:10It could fetch anywhere between £120,000 and £140,000.
0:06:17 > 0:06:20Well, it's a new chapter in the life of this former Methodist chapel.
0:06:20 > 0:06:25It's going to take someone with divine inspiration to take it on.
0:06:25 > 0:06:28Let's find out who that was when it went under the hammer.
0:06:33 > 0:06:39We move on to lot 49, the former Methodist chapel.
0:06:39 > 0:06:41Typical chapel architecture.
0:06:41 > 0:06:44You've got a large former chapel, meeting room,
0:06:44 > 0:06:47with an additional schoolroom at right angles to it.
0:06:47 > 0:06:51Who's got 100,000 to put into the bidding? 100.
0:06:51 > 0:06:57Thank you. £100,000 is the opening bid here. At £100,000.
0:06:57 > 0:07:00At 100. 102 somewhere?
0:07:00 > 0:07:02102. At 102.
0:07:02 > 0:07:04104 in front of me.
0:07:04 > 0:07:06106.
0:07:06 > 0:07:08106. £108,000.
0:07:08 > 0:07:12At 108. 110. 110.
0:07:12 > 0:07:16112. 112. 114.
0:07:17 > 0:07:20116. 117.
0:07:21 > 0:07:24118. 119.
0:07:25 > 0:07:28120. 121.
0:07:29 > 0:07:34121,000. 122. 123.
0:07:34 > 0:07:37123. 124.
0:07:37 > 0:07:38125.
0:07:38 > 0:07:42126. Where are we? 126.
0:07:42 > 0:07:45I've got you, sir. 127.
0:07:45 > 0:07:47128.
0:07:47 > 0:07:51129. 130. £130,000.
0:07:52 > 0:07:54131. 132.
0:07:54 > 0:07:57132. And three.
0:07:57 > 0:08:02133. 34. 135.
0:08:02 > 0:08:05136. Definite.
0:08:05 > 0:08:08£136,000, once.
0:08:08 > 0:08:12£136,000, twice.
0:08:12 > 0:08:14All done at £136,000.
0:08:14 > 0:08:15HE BANGS GAVEL
0:08:15 > 0:08:17Sold at the back. 136.
0:08:18 > 0:08:22So for 136,000, the new owners of the old Methodist chapel
0:08:22 > 0:08:25in Stanley, Derbyshire are Pat and his wife Janet.
0:08:30 > 0:08:32Pat and Janet live locally
0:08:32 > 0:08:34and I was intrigued to find out their plans
0:08:34 > 0:08:35for this unusual building.
0:08:37 > 0:08:40Janet, Pat, great to meet you both. Congratulations.
0:08:40 > 0:08:44Tell me why you wanted to buy this place.
0:08:44 > 0:08:47Well, we were looking to downsize from our current home
0:08:47 > 0:08:50- and we were looking for a house to move into.- Downsize?
0:08:50 > 0:08:52That was the initial idea, yeah.
0:08:53 > 0:08:55We were looking for somewhere...
0:08:55 > 0:08:58Initially we wanted a building plot or a house we could develop.
0:08:58 > 0:09:01We saw this quite by chance and I drove by just from the outside,
0:09:01 > 0:09:05saw it and thought, "Oh, that looks quite good. It's got some potential."
0:09:05 > 0:09:08Plus I grew up in the neighbouring village and I spent a lot of
0:09:08 > 0:09:13my childhood in this village so I've got ties with this area.
0:09:14 > 0:09:19What did you think when Pat first mooted the idea of this place?
0:09:19 > 0:09:25I was quite pleased because we were looking for somewhere else anyway.
0:09:25 > 0:09:27I like the area. I also grew up in a village
0:09:27 > 0:09:31so it's quite a nice feeling coming back to live in a village.
0:09:31 > 0:09:35Strangely enough, I went to chapel in the village
0:09:35 > 0:09:38so a lot of my childhood memories actually stem from
0:09:38 > 0:09:41spending time in a Methodist church.
0:09:41 > 0:09:45- Wow.- Quite a nice feeling. - It's all come full circle.
0:09:45 > 0:09:50- The idea is what, to convert this into a home?- Yeah.- The whole thing?
0:09:50 > 0:09:54- Including the adjoining bit and all that stuff?- Yeah.
0:09:54 > 0:09:56- Have you got any experience in this kind of thing?- Yeah.
0:09:56 > 0:10:00I've got my own company, which does home improvements.
0:10:00 > 0:10:03- OK.- Although we do specialise in garage and loft conversions,
0:10:03 > 0:10:08we do a lot of extensions and we do buildings so I'm in the know
0:10:08 > 0:10:10as you might say. I've got all the right guys around me.
0:10:11 > 0:10:15'Yes, Pat might have all the right contacts but this is a little more
0:10:15 > 0:10:18'lofty an ambition than a house improvement.
0:10:18 > 0:10:23'It's not even a house yet. How do they hope to turn this into a home?'
0:10:26 > 0:10:28The first thing, strip it out.
0:10:28 > 0:10:30We've got to get that ceiling out, get rid of that to discover
0:10:30 > 0:10:32just how much height we've got.
0:10:32 > 0:10:35Then we need a mezzanine floor in here, which is
0:10:35 > 0:10:38a steel structure to get an upstairs in.
0:10:38 > 0:10:40Staircase over there so once we've got the mezzanine floor in,
0:10:40 > 0:10:44we can look at subdividing partitions for rooms.
0:10:44 > 0:10:48The extension that is built on the side there, that is going to be
0:10:48 > 0:10:51the kitchen but we'll have a sort of family area
0:10:51 > 0:10:57- so we've got a kitchen and dining area there.- How many bedrooms?
0:10:57 > 0:11:01- Four.- What is the budget then? - I worked out budget of
0:11:01 > 0:11:03about £77,000 for it.
0:11:03 > 0:11:07- About 77,000? - Well, 77,000, yeah.
0:11:07 > 0:11:10- Very specific!- 77,358!
0:11:10 > 0:11:14Pat has gone into this thoroughly, budgeting down to the last penny.
0:11:14 > 0:11:17But then the whole project is dependent on them selling
0:11:17 > 0:11:22a property so it is not surprising he has done a detailed costing.
0:11:22 > 0:11:24What timescale are we looking at?
0:11:24 > 0:11:29We've got three months to get through planning, if that goes well.
0:11:29 > 0:11:33- At the moment it's got planning to be a church?- Yeah.
0:11:33 > 0:11:36- So you've got to apply for it to be changed to residential?- Yeah.
0:11:36 > 0:11:38How do you think that will go down?
0:11:38 > 0:11:42As part of the sale package, it had already been discussed
0:11:42 > 0:11:45with the local authority and they had indicated that they would look
0:11:45 > 0:11:48favourably upon such a development.
0:11:48 > 0:11:53I've had the council out here, in fact, just to get their feel for it.
0:11:53 > 0:11:57Also I was trying to find out if it was realistic.
0:11:57 > 0:12:00The feedback I'm getting is quite good,
0:12:00 > 0:12:02quite favourable that they will look favourably upon it.
0:12:02 > 0:12:06So three months for the planning and then the construction?
0:12:06 > 0:12:09I think the project will take about six months.
0:12:09 > 0:12:11The work is about six months.
0:12:11 > 0:12:13I'm working on a 12-month turnaround
0:12:13 > 0:12:16because you've got to allow for slippage, if the council takes
0:12:16 > 0:12:20a bit longer and I've got to get some money together to pay for it.
0:12:20 > 0:12:23There is always that, yeah. Wow. Well, very exciting indeed.
0:12:23 > 0:12:26Can't wait to see how you get on. Good luck with it.
0:12:26 > 0:12:29- Thank you very much indeed. Lovely. Cheers. Thank you.- Thank you.
0:12:31 > 0:12:35Well, it was always going to take someone with imagination
0:12:35 > 0:12:37and experience to take this place on.
0:12:37 > 0:12:43It seems that Janet and Pat have both. Still, it is ambitious.
0:12:43 > 0:12:47How will they get on? I can't wait! You can find out later in the show.
0:12:52 > 0:12:54Today I'm in the historic mill town of Bacup,
0:12:54 > 0:12:59which sits in the rural setting of the Forest of Rossendale.
0:12:59 > 0:13:02These days, it is popular with people looking for
0:13:02 > 0:13:04easy commuter access to Manchester
0:13:04 > 0:13:08but if you're interested in Great Britain's industrial past,
0:13:08 > 0:13:10you might want to pay a visit to Bacup
0:13:10 > 0:13:13because it's in a conservation area
0:13:13 > 0:13:16of special architectural and historical interest.
0:13:16 > 0:13:20And it holds the prestigious title of the best preserved
0:13:20 > 0:13:22cotton town in England.
0:13:26 > 0:13:28The town features large-scale mills
0:13:28 > 0:13:31and factories from the Industrial Revolution.
0:13:31 > 0:13:35But several hundred years before that, Bacup had its own
0:13:35 > 0:13:39cottage industry, producing flannel and woollen cloth.
0:13:39 > 0:13:41But will today's property be something special
0:13:41 > 0:13:43or just run-of-the-mill?
0:13:46 > 0:13:50The property I'm here to see is typical of the town.
0:13:50 > 0:13:52It's a two-bedroom terrace.
0:13:52 > 0:13:55You never know what you're going to find until you walk through
0:13:55 > 0:14:01the door but an extremely attractive guide price of just £20,000?!
0:14:02 > 0:14:04This has got to be worth a look.
0:14:08 > 0:14:12This is quite an interesting area to hang up your coats.
0:14:12 > 0:14:14It's a good use of space
0:14:14 > 0:14:17although I'm not so sure I like the leaded light effect.
0:14:17 > 0:14:20You might want to think about knocking that out
0:14:20 > 0:14:22and putting something more modern in its place.
0:14:22 > 0:14:24But what a great room. Wow.
0:14:24 > 0:14:26Loads of space inside.
0:14:26 > 0:14:29Somebody's already knocked through here, which is a real bonus.
0:14:29 > 0:14:32Enough room there for a big family dining table.
0:14:32 > 0:14:36You've got the kitchen right at the back of the property, needs a lot of
0:14:36 > 0:14:39upgrading, you could certainly spend a few quid in here
0:14:39 > 0:14:42but it's a really good family house.
0:14:42 > 0:14:45So far, so good.
0:14:45 > 0:14:49What's also looking rather special is that there's no bathroom down here,
0:14:49 > 0:14:52which can be par for the course in these types of properties,
0:14:52 > 0:14:55which means that at the top of a pretty tight staircase is
0:14:55 > 0:15:00this bathroom, albeit, with a pretty run-down suite.
0:15:00 > 0:15:04There are two bedrooms, one's a decent size and one, well,
0:15:04 > 0:15:06not such a decent size.
0:15:06 > 0:15:08But I'm also beginning to spot reasons why the house comes
0:15:08 > 0:15:11guided at £20,000.
0:15:11 > 0:15:15Upstairs and down, there are clear signs of damp on the walls,
0:15:15 > 0:15:17ceilings and floors.
0:15:17 > 0:15:21Fixing this lot means you'll have to factor in a good sum to that
0:15:21 > 0:15:23renovation budget.
0:15:23 > 0:15:26I think getting someone in to look at the roof is a must
0:15:26 > 0:15:28and talking of outside...
0:15:28 > 0:15:30So, if you're thinking of inviting your friends
0:15:30 > 0:15:34around in the summer for a bit of a barbecue, a glass of wine,
0:15:34 > 0:15:36you'd better invite them one at a time.
0:15:38 > 0:15:40This is your back garden.
0:15:41 > 0:15:47# Dinner for one, please, James
0:15:48 > 0:15:53# The madam will not be dining... #
0:15:53 > 0:15:55But look on the bright side,
0:15:55 > 0:15:57at least it'll be a low-maintenance area.
0:15:57 > 0:16:00The front of the house looks solid and tidy
0:16:00 > 0:16:03but with that low guide price of 20,000, I reckon there's
0:16:03 > 0:16:06plenty of work to be done here to get this place up to scratch.
0:16:09 > 0:16:11Time now for a second opinion.
0:16:11 > 0:16:13We asked a local property expert,
0:16:13 > 0:16:17her views on this two-bed terraced house in Bacup.
0:16:17 > 0:16:19The property will need some serious TLC.
0:16:19 > 0:16:22The majority of it is double glazed.
0:16:22 > 0:16:25Some of the seals may need some attention, though.
0:16:25 > 0:16:27Erm, it does look it's got gas central heating
0:16:27 > 0:16:30but obviously the boiler will need investigating, I would say.
0:16:30 > 0:16:33Erm, some of the floorboards are missing, erm,
0:16:33 > 0:16:35and will need some attention, definitely.
0:16:35 > 0:16:39You'll be looking new kitchen, new bathroom and basically,
0:16:39 > 0:16:42bringing it up to an overall modern, contemporary standard.
0:16:44 > 0:16:47So, is there any advantage in changing the downstairs layout?
0:16:47 > 0:16:51Ideally, you'd want to try and open that accommodation up,
0:16:51 > 0:16:53to make the most out of the kitchen space and obviously,
0:16:53 > 0:16:55the lounge that you've got to the front elevation,
0:16:55 > 0:16:58take that wall out, start bringing your kitchen in,
0:16:58 > 0:17:01so that you've got more of a open-plan living space.
0:17:01 > 0:17:04But it depends on budget and obviously,
0:17:04 > 0:17:07if you're even going to get that cost back in today's market.
0:17:07 > 0:17:10Bearing the tricky resale market in mind,
0:17:10 > 0:17:14what does the agent think this house could achieve if the work was done?
0:17:14 > 0:17:18Erm, you'd look to market it at £65,000
0:17:18 > 0:17:21and aiming to achieve around £60,000.
0:17:21 > 0:17:26So, there could be profit in this house if sold on but what about rental values?
0:17:26 > 0:17:29The rental market in this area is very strong.
0:17:29 > 0:17:32We'd have tenants ready to move in straightaway
0:17:32 > 0:17:36and aiming to achieve £395 per calendar month
0:17:36 > 0:17:39to maybe £425 per calendar month.
0:17:40 > 0:17:43Well, I think it's a fairly straightforward one, this.
0:17:43 > 0:17:47A traditional two-bed terrace in a historical town,
0:17:47 > 0:17:49with plenty of character.
0:17:49 > 0:17:53Let's see who cottoned on to it when it went under the hammer.
0:17:57 > 0:18:03Lots 146...nice and easy, straightforward. Give me 10,000.
0:18:03 > 0:18:05£10,000.
0:18:05 > 0:18:07Ten, straight in there.
0:18:07 > 0:18:10I've got ten looking for 15 and I've got it off you, sir, have I?
0:18:10 > 0:18:11I have.
0:18:11 > 0:18:1320? 25?
0:18:13 > 0:18:15No? 22?
0:18:15 > 0:18:17No. 21, then?
0:18:17 > 0:18:21No? On my left at 20. Looking for 21...
0:18:21 > 0:18:25At 20,000, it's going, first time, second time, we're all finished.
0:18:25 > 0:18:26HE BANGS GAVEL
0:18:26 > 0:18:29Sold, to paddle number 998.
0:18:29 > 0:18:32Well, that was short, sharp and sweet
0:18:32 > 0:18:36and the man getting the house for bang on its guide price of 20,000
0:18:36 > 0:18:38was Russ, seen here on the left,
0:18:38 > 0:18:42with his business partner and financial director, Andy.
0:18:42 > 0:18:45They've bought this house for their company, which buys,
0:18:45 > 0:18:47renovates and sells residential properties.
0:18:47 > 0:18:50And I met them at their latest purchase to find out
0:18:50 > 0:18:54if that's exactly what they've got planned for this place.
0:18:54 > 0:18:57Andy and Russ, congratulations!
0:18:57 > 0:19:00There are not that many properties on Homes Under The Hammer that
0:19:00 > 0:19:01sell for 20 grand.
0:19:01 > 0:19:03Were you surprised on the day?
0:19:03 > 0:19:07Yes, we always look pre-auction.
0:19:07 > 0:19:10- It was up for sale for around about 25,000, wasn't it?- It was, yeah.
0:19:10 > 0:19:15And, erm, initially Russ said, "Bid 19,000,"
0:19:15 > 0:19:18so we bid 19,000 and they came back and rejected it.
0:19:18 > 0:19:22We then bid 23,000, again came back rejected.
0:19:22 > 0:19:28So, the final day before the auction, we made a bid of 26,000.
0:19:28 > 0:19:31- Wow, that's quite a jump. - And they turned us down.
0:19:31 > 0:19:35He managed to get a couple of hours spare and went to the auction.
0:19:35 > 0:19:37So, tell me what happened on the day?
0:19:37 > 0:19:41Erm, he went 10, 15, 20,000, the hammer went down, that was it.
0:19:41 > 0:19:44- Bang, that easy! - Shortest auction ever!
0:19:44 > 0:19:46Well, Russ and Andy may have got lucky on the day
0:19:46 > 0:19:50but they've got the experience to turn this place around.
0:19:50 > 0:19:54'Russ was originally a chef before changing career 20 years ago,
0:19:54 > 0:19:57'working his way up in the construction industry
0:19:57 > 0:20:00'from labourer to builder and now to a developer,
0:20:00 > 0:20:05'while pal Andy had been a partner in an accountancy firm before
0:20:05 > 0:20:09'setting up a company with Russ and becoming the finance director.'
0:20:09 > 0:20:11So, tell me about your company, guys.
0:20:11 > 0:20:16Well, we tend to build portfolio. I mean, we asset manage.
0:20:16 > 0:20:17So, people come to us
0:20:17 > 0:20:21and we try and find individual properties for people
0:20:21 > 0:20:24and build their portfolio of properties up and then we tend to
0:20:24 > 0:20:28manage them, don't we? We have another section who manages them.
0:20:28 > 0:20:31And we do ourselves, as well. We buy for ourselves, like this one.
0:20:31 > 0:20:35Erm, we're going to do it up to a high standard and aim at the first-time-buyer market.
0:20:35 > 0:20:37With this one having so much profit, we thought we'd keep it.
0:20:37 > 0:20:40- SHE LAUGHS - You see, so you've bought this for yourselves.
0:20:40 > 0:20:42I mean, this is a great one for you two
0:20:42 > 0:20:45because there's not a lot you need to do to improve this.
0:20:45 > 0:20:47It just needs updating, really.
0:20:47 > 0:20:50Yeah, it was a nice find when we came through the front door.
0:20:50 > 0:20:54It was... You don't know what to expect and it wasn't bad.
0:20:56 > 0:21:00Russ, with his builder's know-how will project manage the renovation,
0:21:00 > 0:21:04while Andy, being the money man, will raise the funds for the job.
0:21:04 > 0:21:07They both know they have a bargain on their hands
0:21:07 > 0:21:10and have a team of builders ready to swing into action,
0:21:10 > 0:21:12hoping to have the place ready in six weeks
0:21:12 > 0:21:15but how much do they aim to spend on the house?
0:21:15 > 0:21:17And what do they plan to do?
0:21:17 > 0:21:21In the region of 15 grand, erm, renew everything, electrics,
0:21:21 > 0:21:25plumbing, taking the stack out of the roof, probably dropping the stack.
0:21:25 > 0:21:29New kitchen, bathroom, new floors, re-plastering,
0:21:29 > 0:21:31- neutral decor, carpets.- Wow!
0:21:31 > 0:21:33So, when you say "taking the stack out of the roof",
0:21:33 > 0:21:35- we're talking about the chimney stack?- Yes.
0:21:35 > 0:21:37You know, we're talking about that much space.
0:21:37 > 0:21:42I mean, that's quite a lot of work for not that much space.
0:21:42 > 0:21:45The second bedroom's quite small, as it is with a lot of properties.
0:21:45 > 0:21:49So, what we can do by doing that is utilise upstairs to make the second
0:21:49 > 0:21:52bedroom slightly bigger and still having a good size front bedroom.
0:21:52 > 0:21:55And you can do all that for a 15 grand budget?
0:21:55 > 0:21:59Yeah, cos again, cos we've got it so cheap, we have an energy saving
0:21:59 > 0:22:04company, so we're going to try and put solar energy in and also
0:22:04 > 0:22:08as many lighting and electric saving devices as possible, aren't we?
0:22:08 > 0:22:09- We are, yeah.- Fantastic!
0:22:09 > 0:22:12So, it's going to be an energy efficient, lovely terraced house?
0:22:12 > 0:22:14- Correct.- Tell me how you're going to upgrade the kitchen?
0:22:14 > 0:22:17Erm, we're going to take out the window
0:22:17 > 0:22:19and we're going to run a breakfast bar through an L-shaped kitchen,
0:22:19 > 0:22:23reset the boiler upstairs and maximise the space, really.
0:22:23 > 0:22:26Perfect, so it'll be ideal for a family, nice and modern.
0:22:26 > 0:22:28Yes, yeah, it would, we're aiming for the first-time buyers.
0:22:28 > 0:22:30A nice, clean finish.
0:22:30 > 0:22:32And Russ knows a damp problem when he sees one.
0:22:32 > 0:22:34And having done a bit of investigating,
0:22:34 > 0:22:39reckons the joints and timbers are fine, with no woodworm or dry rot.
0:22:39 > 0:22:42He plans to just replace the floorboards.
0:22:42 > 0:22:45So, well and good and as for that rear yard, well,
0:22:45 > 0:22:46if it can be called that!
0:22:48 > 0:22:50Do you think that's going to put potential buyers off
0:22:50 > 0:22:52because there isn't anything out back?
0:22:52 > 0:22:54There's plenty going on around, isn't there?
0:22:54 > 0:22:58I mean, there's obviously... there's the cricket pitch close by
0:22:58 > 0:23:00and there's plenty of places to walk, there's a park so...
0:23:00 > 0:23:03No, I mean, to be honest with you, in this day and age,
0:23:03 > 0:23:05people don't like doing the garden, it's as simple as that.
0:23:05 > 0:23:09I mean, most terrace houses only have a yard or a little cubbyhole, don't they?
0:23:09 > 0:23:12I don't think people like doing it, it's maintenance free...
0:23:12 > 0:23:14It's still good to have that bit of outside space -
0:23:14 > 0:23:18to be able to go out and have a barbecue or hang your washing or something.
0:23:18 > 0:23:20I mean, there isn't that at all here.
0:23:20 > 0:23:24But you've got a nice kitchen extension, you've got a big, open-aspect lounge, living room.
0:23:24 > 0:23:27So, with the weather that we get, you don't want to be spending too much time in the garden.
0:23:27 > 0:23:31Especially being in Bacup, you don't get your washing out very often.
0:23:31 > 0:23:33Guys, good luck with this project.
0:23:33 > 0:23:37- I can't wait to see the outcome, well done. Andy, Russ, thank you. - Thank you.- Thank you.
0:23:37 > 0:23:40Well, Andy and Russ certainly picked up the bargain of the day
0:23:40 > 0:23:42with this one.
0:23:42 > 0:23:44But will they get that first-time buyer
0:23:44 > 0:23:46they need to make the profit they're hoping for?
0:23:46 > 0:23:49Join us later in the programme and you can find out.
0:23:51 > 0:23:55Coming up, we find out how this flat in South West London
0:23:55 > 0:23:58goes from decent to desirable.
0:24:02 > 0:24:04Back in Lancashire, Russ and Andy tell us
0:24:04 > 0:24:07their secret to a successful partnership.
0:24:09 > 0:24:11Andy's not been here, so it's been perfect.
0:24:13 > 0:24:16But first, is it inspirational, is it magnificent?
0:24:16 > 0:24:19Have Pat and Janet made their Derbyshire chapel divine?
0:24:25 > 0:24:29It was in the quiet Derbyshire village of Stanley where we
0:24:29 > 0:24:33first came across one of the most unusual of auction lots.
0:24:34 > 0:24:38Built in 1882, this former Methodist chapel had an impressive
0:24:38 > 0:24:42facade and although, perhaps, less striking on the inside,
0:24:42 > 0:24:45consisting mainly of two large rooms,
0:24:45 > 0:24:48with a few smaller rooms off them, there was plenty of space
0:24:48 > 0:24:51and plenty of opportunity to make this something special.
0:24:55 > 0:24:58And despite the fact there was no planning permission in place,
0:24:58 > 0:25:04local couple Pat and Janet snapped it up at auction for £136,000
0:25:04 > 0:25:06and they had big plans for it.
0:25:06 > 0:25:10We've got to get that ceiling out, get rid of that completely.
0:25:10 > 0:25:13Then, we need a complete mezzanine floor in here, to get an upstairs in.
0:25:13 > 0:25:15Staircase over there.
0:25:15 > 0:25:18So, we're going to look at subdividing partitions for rooms.
0:25:18 > 0:25:22Erm, the extension that's built on the side there,
0:25:22 > 0:25:25that's going to be the kitchen but we're going to have a sort of
0:25:25 > 0:25:29family area so, you know, we've got the kitchen and dining area there.
0:25:29 > 0:25:33- How many bedrooms?- Four.- Four.
0:25:33 > 0:25:35Pat runs his own loft conversion company
0:25:35 > 0:25:38and he hopes this rather large conversion could make
0:25:38 > 0:25:44this into home, on a budget of £77,000 and he thought his team of
0:25:44 > 0:25:48builders could complete the work six months after planning was granted.
0:25:50 > 0:25:52Well, now, nearly 17 months later,
0:25:52 > 0:25:55we're back with Pat to see how they got on.
0:26:01 > 0:26:03Well, the sandblasters have been out
0:26:03 > 0:26:06and the exterior brick work's looking as good as new.
0:26:09 > 0:26:12The side extension has been extended to include a garage.
0:26:15 > 0:26:18They're not short of off-road parking space either.
0:26:21 > 0:26:23But how about inside?
0:26:23 > 0:26:27What will greet us through the new front door and porch area?
0:26:35 > 0:26:39Wow! It looks like it's gone from being a hall to a home,
0:26:39 > 0:26:42with new dividing walls, creating separate living spaces.
0:26:50 > 0:26:52And as for the side extension,
0:26:52 > 0:26:54has Janet got the kitchen space she hoped for?
0:26:57 > 0:26:59Oh, she sure has!
0:26:59 > 0:27:02It's now home to a fantastic, vaulted ceiling kitchen.
0:27:06 > 0:27:09What we did in here was, we wanted to get plenty of light,
0:27:09 > 0:27:13so the flat ceiling which ran above us here,
0:27:13 > 0:27:15we took out completely.
0:27:15 > 0:27:18And then what we did was we put in the roof lights to enable us
0:27:18 > 0:27:22to get lots of light to flood into the room to make it nice and light.
0:27:22 > 0:27:25Originally, the altar was here.
0:27:25 > 0:27:27We obviously had to remove the altar.
0:27:27 > 0:27:29None of these walls were here at all.
0:27:29 > 0:27:32Within these walls there's actually steel columns
0:27:32 > 0:27:37and also a complete steel structure, which created the floor for upstairs.
0:27:41 > 0:27:45And with cloakrooms and utility areas, downstairs is looking great!
0:27:50 > 0:27:55But what about that upper mezzanine level? What's up there?
0:27:55 > 0:27:59Having got the mezzanine floor in and the steel beams across,
0:27:59 > 0:28:02we were obviously able to cover the floor with our timber.
0:28:02 > 0:28:06So, having done that and having subdivided it into four bedrooms,
0:28:06 > 0:28:08we've actually got a master bedroom with a dressing room
0:28:08 > 0:28:12and an en suite and a family bathroom here.
0:28:12 > 0:28:15We've ended up with four bedrooms, one master en suite
0:28:15 > 0:28:20and one general family room and I think, a very substantial property.
0:28:22 > 0:28:26So, with four bedrooms, one of which is en suite
0:28:26 > 0:28:30and that family bathroom, this is very much now a home.
0:28:32 > 0:28:34But what are their plans for it?
0:28:34 > 0:28:38Initially, we thought we were going to move here ourselves
0:28:38 > 0:28:40and live here as a family ourselves.
0:28:40 > 0:28:42The more you think about it, the more you start
0:28:42 > 0:28:45thinking about the logistics of actually making the move.
0:28:45 > 0:28:48Cos where we live at the moment, we've been there 26 years.
0:28:48 > 0:28:50I run my business from there.
0:28:50 > 0:28:54We're so settled where we are, that the idea of moving just
0:28:54 > 0:28:56suddenly didn't appeal, to be perfectly honest.
0:28:56 > 0:28:59Well, moving can be a heart and head decision.
0:28:59 > 0:29:03In this case, it seems that head has ruled heart but nevertheless,
0:29:03 > 0:29:06they've created a wonderful home out of what was a landmark
0:29:06 > 0:29:08building in the village.
0:29:10 > 0:29:14So, has it met with local approval?
0:29:14 > 0:29:17We've had lots of people within the village who walk by,
0:29:17 > 0:29:20who knew the chapel when it was a chapel,
0:29:20 > 0:29:22and people that used to attend it
0:29:22 > 0:29:25and appreciate the fact that we've respected the building,
0:29:25 > 0:29:29you know, little touches like the Bible that we've kept.
0:29:29 > 0:29:31They thought that was a real nice touch
0:29:31 > 0:29:34and showing respect for what it was,
0:29:34 > 0:29:39but also making it into a home for somebody, whoever that might be.
0:29:39 > 0:29:42Pat and Janet tried to do this conversion by the book,
0:29:42 > 0:29:46but this has been a longer project than planned,
0:29:46 > 0:29:49with planning permission taking eight months to achieve.
0:29:49 > 0:29:52And then there was a further eight months to do the work,
0:29:52 > 0:29:56so what effect did this have on their £77,000 budget?
0:29:56 > 0:29:58I'm on budget.
0:29:58 > 0:30:01The granite might take me a tiny bit over
0:30:01 > 0:30:04but I'm more or less on my budget, which I set myself.
0:30:04 > 0:30:07I'm very chuffed with it. I think we've done really well.
0:30:07 > 0:30:09Well, a budget of £77,000
0:30:09 > 0:30:13on top of a £136,000 purchase price
0:30:13 > 0:30:18takes their total spend to £213,000 without costs and fees,
0:30:18 > 0:30:21and with the plan now to sell the chapel conversion,
0:30:21 > 0:30:25will this four-bedroom property appeal to the local market?
0:30:25 > 0:30:28What do two local estate agents think?
0:30:28 > 0:30:32The first thing that I would say is the look of it. I think it looks great.
0:30:32 > 0:30:36The only question mark I would have is going to be on the first floor.
0:30:36 > 0:30:38It's quite a modest first floor
0:30:38 > 0:30:40compared to the ground floor,
0:30:40 > 0:30:43and I think maybe if it was to be appealing to a couple,
0:30:43 > 0:30:46it might be better served as a three-bedroomed property.
0:30:46 > 0:30:49That would give the opportunity to have a large master bedroom.
0:30:49 > 0:30:52Certainly what catches my attention
0:30:52 > 0:30:54is the ground-floor space.
0:30:54 > 0:30:57Extremely well proportioned, very well appointed.
0:30:57 > 0:31:00Upstairs may be a little tight on accommodation
0:31:00 > 0:31:03but got all the mod cons, en suite family bathroom.
0:31:03 > 0:31:07But without a garden, this might not tick all the boxes
0:31:07 > 0:31:11as a family home. Even so, how will a building Pat and his wife Janet
0:31:11 > 0:31:13have invested £213,000 in
0:31:13 > 0:31:16fare on the resale market?
0:31:18 > 0:31:20I think if I was to put this on the market,
0:31:20 > 0:31:22I would start asking £395,000.
0:31:22 > 0:31:25If I had to place this on the open market,
0:31:25 > 0:31:29I'd initially suggest an asking price of £350,000.
0:31:29 > 0:31:34It's in the sort of region I'd hoped and half expected,
0:31:34 > 0:31:39but what people say it's worth and what somebody offers can differ.
0:31:39 > 0:31:42So I'm not going to get carried away with that, but, yes,
0:31:42 > 0:31:44it's in the sort of region I'd have expected.
0:31:44 > 0:31:47Well, this isn't your conventional property,
0:31:47 > 0:31:50so valuations are hard to make
0:31:50 > 0:31:55but, potentially, there could be a very, very healthy pre-tax profit
0:31:55 > 0:32:00of between £137,000 and £182,000,
0:32:00 > 0:32:03which - it goes without saying - makes this
0:32:03 > 0:32:06a very successful project, financially.
0:32:06 > 0:32:10So, is Pat pleased with the overall outcome?
0:32:10 > 0:32:14Generally speaking, I'm very satisfied with the project.
0:32:14 > 0:32:16I think it's gone really well.
0:32:16 > 0:32:19Everything that I expected to get from it, I think we've achieved,
0:32:19 > 0:32:22so I'm very satisfied. Ready now for the next project.
0:32:22 > 0:32:25We've got to move on to another one.
0:32:25 > 0:32:27Raring to go, basically.
0:32:31 > 0:32:34Well, while Pat's raring to go,
0:32:34 > 0:32:36I'm not quite so sure where I am.
0:32:36 > 0:32:38Somewhere in South London.
0:32:38 > 0:32:42This part of London is equidistant between Raynes Park and Wimbledon.
0:32:42 > 0:32:45Now, the auction catalogue said it's Raynes Park,
0:32:45 > 0:32:49but the local estate agents say it's Wimbledon.
0:32:49 > 0:32:51So, where exactly is it?
0:32:51 > 0:32:55Well, it's a popular and desirable location whatever.
0:32:55 > 0:32:58So the property I'm here to see is a one-bedroom flat -
0:32:58 > 0:33:01it's on the ground floor of this mid-terrace,
0:33:01 > 0:33:04it had a guide price of £180,000 plus,
0:33:04 > 0:33:07so let's go inside and take a closer look.
0:33:12 > 0:33:15OK, so the SW20 postcode
0:33:15 > 0:33:19does place this property thoroughly in the Raynes Park camp,
0:33:19 > 0:33:23but it really is just a difference of a few hundred yards
0:33:23 > 0:33:27as to which is closer - central Wimbledon or Raynes Park.
0:33:27 > 0:33:29So, what have we got?
0:33:29 > 0:33:33The entrance hall and all the rooms off here is quite nice.
0:33:33 > 0:33:36This room at the front, I suppose, is the bedroom.
0:33:36 > 0:33:39And it's really in quite good condition.
0:33:39 > 0:33:41I know it's ex-housing association
0:33:41 > 0:33:45so therefore, it'll be reasonably maintained over the years,
0:33:45 > 0:33:46but have a look at this.
0:33:46 > 0:33:49Look, the plaster really is in such good condition.
0:33:49 > 0:33:51The electrics are OK.
0:33:51 > 0:33:54You've got new double-glazing over here.
0:33:54 > 0:33:56So far, so good.
0:33:56 > 0:33:58If I was to be picky,
0:33:58 > 0:34:01I'd say this flat is a little characterless,
0:34:01 > 0:34:05and there's a bit of condensation around the front windows,
0:34:05 > 0:34:06but no signs of serious damp.
0:34:06 > 0:34:09I think the place just needs a good airing.
0:34:09 > 0:34:12The bathroom is quite small and needs a total refit.
0:34:12 > 0:34:15Sometimes, a bit more luxury wouldn't go amiss.
0:34:17 > 0:34:21The rear reception room is also a very good size
0:34:21 > 0:34:23and really just needs carpet,
0:34:23 > 0:34:26although a fireplace would make a nice additional feature
0:34:26 > 0:34:30and focal point here. I'm really struggling to find anything negative
0:34:30 > 0:34:32to say about this flat.
0:34:35 > 0:34:38Even the kitchen units aren't too bad,
0:34:38 > 0:34:41although I think I would suggest replacing them.
0:34:41 > 0:34:43But look out here.
0:34:43 > 0:34:46You've got your own private garden. It's brilliant!
0:34:46 > 0:34:49Which gives you the option, if you want,
0:34:49 > 0:34:52to extend just like the neighbours have done.
0:34:52 > 0:34:54And if you haven't guessed it yet,
0:34:54 > 0:34:58yes, there is a train track at the end of the garden. Not ideal.
0:35:04 > 0:35:07OK, there had to be something wrong with this flat.
0:35:07 > 0:35:09The passing trains might
0:35:09 > 0:35:11put some buyers off.
0:35:11 > 0:35:13What does a local estate agent think?
0:35:13 > 0:35:16The trains aren't really an issue.
0:35:16 > 0:35:19If you live in London, we all expect some noise from somewhere.
0:35:19 > 0:35:22So, we've got trains at the end of the garden?
0:35:22 > 0:35:24But we've got a garden.
0:35:24 > 0:35:26But what about the postcode question?
0:35:26 > 0:35:28Does that make a difference?
0:35:28 > 0:35:32It does make some financial difference between Raynes Park and Wimbledon.
0:35:32 > 0:35:35Wimbledon, generally, is more expensive than Raynes Park,
0:35:35 > 0:35:38although there are parts of Raynes Park that are extremely expensive,
0:35:38 > 0:35:42but I think that this property should definitely be classed as Wimbledon.
0:35:42 > 0:35:45But what about the flat itself?
0:35:45 > 0:35:49My thoughts of this property are, "What a fantastic purchase!"
0:35:49 > 0:35:51Absolutely great.
0:35:51 > 0:35:53It's a good size, one-bedroom ground-floor flat
0:35:53 > 0:35:55with its own private entrance.
0:35:55 > 0:35:58It's got a garden. What more could you ask for?
0:35:58 > 0:36:00I would be very surprised if it didn't sell,
0:36:00 > 0:36:02in its current condition,
0:36:02 > 0:36:06for around about £299,000.
0:36:06 > 0:36:09There's also the possibility of extending the property.
0:36:09 > 0:36:13I think you could easily get a second bedroom out of here.
0:36:13 > 0:36:15Remember that guide price?
0:36:15 > 0:36:17It's £180,000 plus,
0:36:17 > 0:36:20and if you got it anything near that,
0:36:20 > 0:36:22you could make a sizeable profit
0:36:22 > 0:36:24without even doing anything to it.
0:36:24 > 0:36:26That begs the question,
0:36:26 > 0:36:28would it be worth the hassle and expense
0:36:28 > 0:36:30of doing the renovation work?
0:36:30 > 0:36:33If the property was completely renovated throughout,
0:36:33 > 0:36:37given a little bit more character, a little bit more charm,
0:36:37 > 0:36:41I think that you would certainly be looking to achieve
0:36:41 > 0:36:45something in the region of around about £350,000.
0:36:45 > 0:36:47If you were able to extend this property,
0:36:47 > 0:36:51you would then make this into a very nice two-bedroomed ground floor.
0:36:51 > 0:36:54In that case, I would certainly be looking to market the property
0:36:54 > 0:36:56at around about £425,000.
0:36:56 > 0:36:58Wow!
0:36:58 > 0:37:02So, say you got this for anything like that £180,000 guide price,
0:37:02 > 0:37:06even if you spend £60,000 extending this flat,
0:37:06 > 0:37:09there could be a really substantial profit here.
0:37:09 > 0:37:13But if you opted to let, not sell, what then?
0:37:13 > 0:37:16As a one-bedroom ground-floor garden flat,
0:37:16 > 0:37:20I would definitely consider a rent of no less than
0:37:20 > 0:37:22£1,200 per calendar month.
0:37:22 > 0:37:25If this property became a two-bedroomed property,
0:37:25 > 0:37:28I would suggest that you would be looking around about £1,600
0:37:28 > 0:37:30per calendar month.
0:37:30 > 0:37:33So, this flat is in a very popular location,
0:37:33 > 0:37:35but it does have its downsides,
0:37:35 > 0:37:40the main one being the busy train track at the end of the garden.
0:37:40 > 0:37:42But did that put the bidders off?
0:37:42 > 0:37:45Let's find out when we head to auction.
0:37:45 > 0:37:49Who'd like to start off on this? I don't know. 200 anywhere?
0:37:49 > 0:37:52I'll start the other way. 150, then?
0:37:52 > 0:37:55Start at 150? 150 in the aisle. 155.
0:37:55 > 0:37:58155 straight ahead.
0:37:58 > 0:37:59160, sir.
0:37:59 > 0:38:01165.
0:38:01 > 0:38:04170. 175...
0:38:04 > 0:38:05Not surprisingly,
0:38:05 > 0:38:08this was a very keenly contested auction.
0:38:08 > 0:38:11We rejoin the bidding at 234,000.
0:38:11 > 0:38:15234 with you, sir, blue shirt.
0:38:15 > 0:38:17Anyone else? 234.
0:38:17 > 0:38:19235.
0:38:19 > 0:38:20236.
0:38:20 > 0:38:22237.
0:38:22 > 0:38:24238.
0:38:24 > 0:38:26239.
0:38:26 > 0:38:30239. 240.
0:38:30 > 0:38:33241. Yes? 241.
0:38:33 > 0:38:37242. 243. With you, sir, in the white cap.
0:38:37 > 0:38:39244.
0:38:39 > 0:38:40245.
0:38:40 > 0:38:43244, first time...
0:38:43 > 0:38:45Second time...
0:38:45 > 0:38:48Third and last time, are we all done?
0:38:48 > 0:38:50Sold 244. Well done.
0:38:50 > 0:38:53The final bid for that trackside Raynes Park flat
0:38:53 > 0:38:56was made by local couple Anita and Behar.
0:38:56 > 0:39:01These two have only just recently finished renovating their own home in Wimbledon,
0:39:01 > 0:39:04which took them 18 months to complete.
0:39:04 > 0:39:07So, was this Raynes Park flat the next property on their hit list?
0:39:07 > 0:39:11I met Anita and Behar at the flat to find out about their plans.
0:39:11 > 0:39:15- Behar and Anita, lovely to meet you today.- And you.
0:39:15 > 0:39:16What a fantastic little find.
0:39:16 > 0:39:20Tell me the story about the flat and how you got here.
0:39:20 > 0:39:25Well, um, we decided that we were going to start a new business
0:39:25 > 0:39:30because Anita has gone through a divorce
0:39:30 > 0:39:33and she just wants to start a business
0:39:33 > 0:39:36and we know a lot about property - at least we think we do.
0:39:36 > 0:39:38And we went along to an auction
0:39:38 > 0:39:40and here we are.
0:39:40 > 0:39:44Anita, what is the whole purpose of you having bought this flat?
0:39:44 > 0:39:47To create income. This is going to be my new income stream,
0:39:47 > 0:39:49so, yeah, that's it.
0:39:49 > 0:39:52- Are you looking at renting it out to somebody, potentially?- No.
0:39:52 > 0:39:55I think we're probably going to sell this on
0:39:55 > 0:39:57and then move on to another project.
0:39:57 > 0:40:00Both Anita and Behar have dabbled in property in the past,
0:40:00 > 0:40:02and Behar has even bought at auction before,
0:40:02 > 0:40:05but that was 20 years ago and a bit more unplanned.
0:40:05 > 0:40:09I went along to an auction, to do my due diligence, as you do,
0:40:09 > 0:40:12and I was with a friend
0:40:12 > 0:40:15who was an estate agent, and he said, "Look, just put your hand up."
0:40:15 > 0:40:18A little three-bedroom house came up
0:40:18 > 0:40:19and I went, "What? Are you sure?"
0:40:19 > 0:40:22And he went, "Yeah, yeah, it'll go for much more."
0:40:22 > 0:40:24I put my hand up
0:40:24 > 0:40:27and the auctioneer looked at me and he said, "Going once,
0:40:27 > 0:40:30"going twice...gone! Bargain of the century."
0:40:30 > 0:40:32And I'd bought a house.
0:40:32 > 0:40:35- So, had you put your hand up just for a little rehearsal?- Yeah.
0:40:35 > 0:40:38- That's right. - And you ended up buying it!
0:40:38 > 0:40:4035,000. I bought a house. Wow.
0:40:40 > 0:40:44- So that little rehearsal cost you 35 grand?- Yeah.
0:40:44 > 0:40:46But I made a lot of money on it.
0:40:46 > 0:40:49- That's what I like to hear. - Yeah.- Pure luck.
0:40:49 > 0:40:52# If practice makes perfect
0:40:52 > 0:40:55# Just close your eyes again
0:40:55 > 0:40:58# We'll try those sights again
0:40:58 > 0:41:00# And make them more sublime... #
0:41:00 > 0:41:03Yes, they say practice makes perfect
0:41:03 > 0:41:06and in this case, that's true. Behar was lucky.
0:41:06 > 0:41:11But making a bid as a rehearsal is a really risky thing to do.
0:41:11 > 0:41:13If you make that winning bid, it's yours,
0:41:13 > 0:41:16and if you don't come up with the money,
0:41:16 > 0:41:19you could get yourself into some very expensive trouble indeed.
0:41:19 > 0:41:22So who was it who spotted this property?
0:41:22 > 0:41:24I think I did, actually.
0:41:24 > 0:41:27- Yeah, you did.- We came and viewed it, we did two viewings,
0:41:27 > 0:41:30and did all the research, read the legal pack.
0:41:30 > 0:41:32We live five minutes round the corner
0:41:32 > 0:41:35so it's really useful for us, location-wise.
0:41:35 > 0:41:38And because it's our first one, we thought you can't take chances.
0:41:38 > 0:41:41Really close by. We were just delighted we got it.
0:41:41 > 0:41:45Absolutely. I think you've bought quite an easy development here.
0:41:45 > 0:41:47There's not that much you need to do.
0:41:47 > 0:41:50You've got new windows, it's already been really well maintained,
0:41:50 > 0:41:54- you just need to sort of tart it up. - Absolutely.- Posh it up.
0:41:54 > 0:41:57Well, Behar and Anita want to posh this place up,
0:41:57 > 0:42:00but what are their plans, exactly?
0:42:00 > 0:42:05Plan A was to extend fully, full width, into the garden.
0:42:05 > 0:42:06But we've since...
0:42:06 > 0:42:09We pretty much think we've changed our minds on that.
0:42:09 > 0:42:12It's so clean and it really doesn't need a lot doing to it.
0:42:12 > 0:42:15The walls are clean, new ceilings,
0:42:15 > 0:42:18so we're going to sort out the flooring,
0:42:18 > 0:42:21probably carpet... tiles in the kitchen,
0:42:21 > 0:42:24bathroom, just right the way through,
0:42:24 > 0:42:26to get continuity.
0:42:26 > 0:42:29- Nice and bright. We want it to be fresh...- Neutral.
0:42:29 > 0:42:32That lovely neutral, fresh look.
0:42:32 > 0:42:35- Blank canvas.- What budget have you got for the work?
0:42:35 > 0:42:37I think we...
0:42:37 > 0:42:40I'd be surprised if we spend more than £12,500.
0:42:40 > 0:42:44Are you quite excited, both of you? And have you got the time?
0:42:44 > 0:42:46- Oh, yeah.- Yes.- We've got the time. - I've got the time.
0:42:46 > 0:42:50- This is my job now.- Anita's got the time. It's not your job.
0:42:50 > 0:42:52I work two and a half days a week
0:42:52 > 0:42:54so I've got plenty of time.
0:42:57 > 0:43:01Behar's current work is as a part-time well-being consultant,
0:43:01 > 0:43:04dealing in nutrition, massage and psychotherapy.
0:43:04 > 0:43:07However, a new career in property developing
0:43:07 > 0:43:08can be very time-consuming
0:43:08 > 0:43:12but at least with this flat, there's the option of doing nothing.
0:43:12 > 0:43:15Anita, are you tempted - come on, be honest -
0:43:15 > 0:43:19to just sell it on as it is? To flip it, make some quick money?
0:43:19 > 0:43:23Yes. If the figures work out, then definitely. Yes.
0:43:23 > 0:43:25I think we'll put it out there and see
0:43:25 > 0:43:28if anyone's interested in buying it as a blank canvas
0:43:28 > 0:43:30to put their own touch on it,
0:43:30 > 0:43:32so I think we're going to definitely try that.
0:43:32 > 0:43:36We've got an agent coming round this afternoon, actually, so we're on it.
0:43:36 > 0:43:39So the big question is, what are we going to see when we come back?
0:43:39 > 0:43:42And how much are we going to spend?!
0:43:42 > 0:43:45- Will it already have sold? - I know. Exactly.
0:43:45 > 0:43:48- And how much are we going to make? - Watch this space.
0:43:48 > 0:43:51Guys, it's been fantastic meeting you both.
0:43:51 > 0:43:54I'm so happy, and I hope it goes really well for you, Anita.
0:43:54 > 0:43:56- Lovely to meet you.- Lovely to meet you.- Thanks, Lucy.- Thank you.
0:43:57 > 0:44:01Well, at least this time round Behar actually bought
0:44:01 > 0:44:03a property on purpose, and not by accident.
0:44:03 > 0:44:06Indeed, Behar and Anita, they've done their research.
0:44:06 > 0:44:08They've bought in an area they know well
0:44:08 > 0:44:12and they deliberately picked a property with not much work to do.
0:44:12 > 0:44:15But will they choose not to do anything
0:44:15 > 0:44:17and just sell it on as it is?
0:44:17 > 0:44:21Stay tuned and you can find out what happens later on in the programme.
0:44:24 > 0:44:28Well, once you've bought your new property, the hard work really
0:44:28 > 0:44:31starts and you have to be prepared for surprises along the way.
0:44:31 > 0:44:34Have our buyers uncovered any treasures,
0:44:34 > 0:44:36unearthed any hidden pitfalls?
0:44:36 > 0:44:37Let's find out.
0:44:41 > 0:44:45It was in the Lancashire cotton town of Bacup where we first saw
0:44:45 > 0:44:48a two-bed terraced house which really needed some love
0:44:48 > 0:44:50and attention.
0:44:50 > 0:44:53With signs of damp and rotting floorboards,
0:44:53 > 0:44:55it generally wasn't in a great state
0:44:55 > 0:44:59and the single-storey extension had left little room at the back.
0:44:59 > 0:45:02No barbecues or sun loungers here.
0:45:02 > 0:45:06It was called a yard and a yard was all you got.
0:45:07 > 0:45:11However, the extension did increase the living space.
0:45:11 > 0:45:15So there was a decent sized lounge, reasonable kitchen,
0:45:15 > 0:45:17and the bathroom was upstairs.
0:45:17 > 0:45:20And although the two bedrooms weren't massive,
0:45:20 > 0:45:24it had the potential to be a good first-time-buyer's property
0:45:24 > 0:45:26or an ideal rental investment.
0:45:26 > 0:45:30Particularly since the guide price was just £20,000.
0:45:31 > 0:45:35All of which made it perfect material for property developing
0:45:35 > 0:45:37Lancashire lads Russ and Andy,
0:45:37 > 0:45:41who having had a previous offer of 26,000 turned down
0:45:41 > 0:45:45prior to auction, were delighted when they got it spot on
0:45:45 > 0:45:48for that £20,000 guide price.
0:45:49 > 0:45:51So, tell me about your company, guys.
0:45:51 > 0:45:53We tend to build portfolio.
0:45:53 > 0:45:58We asset manage, so people come to us and we try and find
0:45:58 > 0:46:03individual properties for people and build a portfolio of properties up.
0:46:03 > 0:46:05And then we then tend to manage them,
0:46:05 > 0:46:07we have another section who manages them.
0:46:07 > 0:46:08We do it ourselves as well.
0:46:08 > 0:46:11We buy for ourselves, like this one, we are
0:46:11 > 0:46:12going to do it up to a high standard.
0:46:12 > 0:46:14And aim at the first-time-buyer market.
0:46:14 > 0:46:18With this one having such profit, we thought we'd keep it.
0:46:18 > 0:46:21Russ looked after the project management of the renovation,
0:46:21 > 0:46:25while Andy is the money man, sorting out the funding and looking
0:46:25 > 0:46:27to find potential investors or tenants,
0:46:27 > 0:46:32so having been armed with £15,000 and a timescale of around six weeks,
0:46:32 > 0:46:35it was down to Russ and his team to do the business
0:46:35 > 0:46:38on the house, while Andy did the business on the finances.
0:46:40 > 0:46:44And now, 12 weeks later, we're back to check on the progress.
0:46:46 > 0:46:50Well, the double glazing's in and there's a new front door.
0:46:50 > 0:46:51And inside...
0:46:56 > 0:47:00Oh, yes, I like it! Very smart.
0:47:08 > 0:47:10And to go along with the new fixtures and fittings,
0:47:10 > 0:47:12there's a revamped kitchen.
0:47:12 > 0:47:17What we did here is, the original door and window were
0:47:17 > 0:47:20part of the original property before they built the extension.
0:47:20 > 0:47:24We removed them to create more light and create a breakfast bar area
0:47:24 > 0:47:27so they've got somewhere to eat and the kids can eat.
0:47:27 > 0:47:29I think it worked out well.
0:47:29 > 0:47:31So, with a considerably improved kitchen area,
0:47:31 > 0:47:34it was just a matter of tackling upstairs.
0:47:37 > 0:47:40And the bathroom certainly looks a whole lot better.
0:47:46 > 0:47:50But did they manage to increase the size of the second bedroom,
0:47:50 > 0:47:51as they'd hoped?
0:47:54 > 0:47:57There was a retaining wall here,
0:47:57 > 0:48:02which we removed to drop this wall back approximately 18 inches,
0:48:02 > 0:48:05which opens up the room into a nice L-shape -
0:48:05 > 0:48:07ideal for two children.
0:48:07 > 0:48:12We also had a problem over there. There was a three foot hole
0:48:12 > 0:48:15when we opened up the plaster and we put a new lintel in.
0:48:15 > 0:48:17I think this room has worked out really well.
0:48:17 > 0:48:20Yes, clean, fresh, tidy.
0:48:20 > 0:48:22This is exactly what this house needed.
0:48:22 > 0:48:24And the walls might be magnolia,
0:48:24 > 0:48:26but they intend to make the house a little greener,
0:48:26 > 0:48:29with soon-to-be-installed solar panels
0:48:29 > 0:48:32to go alongside the low energy lighting,
0:48:32 > 0:48:34and although it's 12 weeks since we've been back,
0:48:34 > 0:48:38the work has actually been completed in six and a half weeks
0:48:38 > 0:48:40with another project in Blackpool,
0:48:40 > 0:48:44and a few holidays delaying the start-to-finish time.
0:48:44 > 0:48:47So, how did they divide up the work?
0:48:47 > 0:48:52I was on site every week - virtually every day, I was here.
0:48:52 > 0:48:54All the lads were here.
0:48:54 > 0:48:58Obviously, I was spitting my time between here and Blackpool.
0:48:58 > 0:49:01Andy's not been here, so it's been perfect.
0:49:01 > 0:49:03Well, Andy may not have been on site much,
0:49:03 > 0:49:07but he certainly seems to have been busy behind the scenes.
0:49:07 > 0:49:09Well, we've actually sold it to an investor.
0:49:09 > 0:49:15I believe he's already got tenants lined up, which is my more job.
0:49:15 > 0:49:19That's why he shouts at me for not being here, but I'm a vital cog.
0:49:19 > 0:49:22Yes, a vital cog indeed,
0:49:22 > 0:49:25but it's all very well having a buyer,
0:49:25 > 0:49:28provided they can make some sort of profit from it,
0:49:28 > 0:49:31and the key to that is sticking to the budget.
0:49:31 > 0:49:35Our original budget was £13,000-£15,000.
0:49:35 > 0:49:40To press, we've spent £13,800. So, we're in budget.
0:49:40 > 0:49:45There's no major expenses, there's just nagging little bits now.
0:49:45 > 0:49:48We still spent too much, though.
0:49:48 > 0:49:51Well, that Andy is a hard taskmaster.
0:49:51 > 0:49:55Let's call it a £15,000 spend to avoid any arguments,
0:49:55 > 0:49:59and add that up to the £20,000 purchase price.
0:49:59 > 0:50:04That brings their total investment, without fees, to £35,000.
0:50:04 > 0:50:07Sounds like a bargain to me. What do two local estate agents think?
0:50:09 > 0:50:12It is a lot better than last time I visited.
0:50:12 > 0:50:15Everything has been improved, and everything has been refurbished.
0:50:15 > 0:50:16A lot better.
0:50:16 > 0:50:19It's a nice, neat and tidy house.
0:50:19 > 0:50:22They've done a good job in terms of making it nice and neutral.
0:50:22 > 0:50:26It's your standard two-up two-down, but it has two good-sized
0:50:26 > 0:50:29bedrooms upstairs, and a nice little bathroom as well.
0:50:29 > 0:50:32There's certain things which maybe aren't up to spec.
0:50:32 > 0:50:35The kitchen is very basic.
0:50:35 > 0:50:38The shower in the bathroom, instead of it being self-contained
0:50:38 > 0:50:42running off electric, it's actually running off the taps in the bath.
0:50:42 > 0:50:44So, there are certain things which could be improved,
0:50:44 > 0:50:48but, although it is basic, it is right for the public market.
0:50:48 > 0:50:53So, maybe not top spec, but this is an investment property after all.
0:50:53 > 0:50:58So, how well have Russ and Andy done with their £35,000 investment?
0:50:58 > 0:51:03I think we'd aim to put the property on the market for £70,000.
0:51:03 > 0:51:08And aim to achieve around £65,000, maybe slightly less.
0:51:08 > 0:51:11If you're looking to put the property on the open market,
0:51:11 > 0:51:13I think you'd be looking in the region of £60,000.
0:51:14 > 0:51:17We thought around about 69,950
0:51:17 > 0:51:20but we've had an investor who has offered us 65,000,
0:51:20 > 0:51:25- so...- We're quite happy with that. - ..we're going to take that, we think.
0:51:25 > 0:51:31A £65,000 sale price would see a potential pre-tax profit of 30,000
0:51:31 > 0:51:36for the lads and the investor's not going to do badly out of it, either,
0:51:36 > 0:51:40with rental figures expected to be between £375 per calendar month
0:51:40 > 0:51:44and £400 per calendar month, generating a healthy yield
0:51:44 > 0:51:49of around 7%, so it looks like it's quids in all round.
0:51:51 > 0:51:53But what's next for Russ and Andy?
0:51:57 > 0:52:01Straight to the auction, buy another one and see you in a fortnight!
0:52:08 > 0:52:12So, will Anita and Behar also be heading back to the auction
0:52:12 > 0:52:18after spending 244,000 on this one-bed flat in Raynes Park,
0:52:18 > 0:52:22South London, which needed very little doing?
0:52:22 > 0:52:25I think you've bought quite an easy development here.
0:52:25 > 0:52:26There's not that much you need to do.
0:52:26 > 0:52:30You've got new windows, it's already been really well maintained,
0:52:30 > 0:52:35- you just need to sort of tart it up, as they say.- Exactly, absolutely. - Yep, posh it up.
0:52:36 > 0:52:40"Poshing up" this former housing association property with
0:52:40 > 0:52:42a £12,000 budget was one possibility,
0:52:42 > 0:52:46but another train of thought was just to flip it -
0:52:46 > 0:52:49that is, to sell it on without doing a thing.
0:52:52 > 0:52:56So two months later, and we're back to see which option they took.
0:53:03 > 0:53:06They've had the builders in for only three weeks
0:53:06 > 0:53:10and this property has now been transformed.
0:53:15 > 0:53:18The rooms are as they were originally,
0:53:18 > 0:53:21and we've basically renewed everything.
0:53:24 > 0:53:28Without trying to put too much of our own stamp on this,
0:53:28 > 0:53:30we wanted to keep it really simple, contemporary.
0:53:30 > 0:53:35My son is a designer so he had a big part in helping
0:53:35 > 0:53:39and just really, without putting a personal touch on this,
0:53:39 > 0:53:43it was a question of, "Well, what do people like now? What are they looking for?"
0:53:43 > 0:53:47One of the most important things was we wanted to keep the flat
0:53:47 > 0:53:48- as bright as possible.- Yeah.
0:53:48 > 0:53:53- Hence the floor. Obviously the feel in this room is one of just light. - Yeah.
0:53:53 > 0:53:55And they've managed to do it all
0:53:55 > 0:53:58without any major structural changes.
0:53:58 > 0:54:03So, the kitchen is very similar to the original layout.
0:54:03 > 0:54:07We moved the oven from this side over to that side of the room
0:54:07 > 0:54:14and we put in integrated washing machine and dishwasher.
0:54:14 > 0:54:20Just modernised it with your white gloss cupboards
0:54:20 > 0:54:25and the LEDs down below, which everybody likes.
0:54:25 > 0:54:28We've maximised the space with storage
0:54:28 > 0:54:33and we've put as much cupboard space in, above and below.
0:54:33 > 0:54:36We've put worktop all the way around the room
0:54:36 > 0:54:38so there's plenty of food preparation areas.
0:54:38 > 0:54:44Wait a minute, wasn't one of the options to add a second bedroom?
0:54:44 > 0:54:48We looked at the whole possibility of extending full width
0:54:48 > 0:54:53out through the back and turning this into bedroom number two
0:54:53 > 0:54:56and then having a nice, large, L-shaped lounge
0:54:56 > 0:54:59with bi-fold doors opening onto the decking,
0:54:59 > 0:55:04and when we looked at the figures, they just didn't stack up
0:55:04 > 0:55:08and the other advantage of not doing it was time,
0:55:08 > 0:55:09saving money
0:55:09 > 0:55:15and also just leaving something for somebody to do,
0:55:15 > 0:55:18cos often people buy things wanting to put their own
0:55:18 > 0:55:20kind of impression on it.
0:55:20 > 0:55:22But has that approach helped them
0:55:22 > 0:55:25keep their renovation costs down, I wonder?
0:55:25 > 0:55:29We talked about 15,000 up to about 20,
0:55:29 > 0:55:32and in fact we came in at 20 and a half, total...
0:55:32 > 0:55:35- 20 and a half, yeah. - ..including parking permits.
0:55:38 > 0:55:44A £20,500 spend on top of a £244,000 purchase price
0:55:44 > 0:55:49takes their total cost to £264,500.
0:55:49 > 0:55:51So have they spent that money wisely?
0:55:51 > 0:55:55What did two local estate agents think?
0:55:56 > 0:55:57Walking back in today,
0:55:57 > 0:56:00I was absolutely gobsmacked, really and truly.
0:56:00 > 0:56:03What a lovely, lovely job they've done
0:56:03 > 0:56:04and in such a short period of time.
0:56:04 > 0:56:07They've made the place look a lot bigger by painting everything white,
0:56:07 > 0:56:10using lots of modern units in the kitchen.
0:56:10 > 0:56:14The bathroom's beautiful. The heating facilities, the radiators,
0:56:14 > 0:56:16are absolutely hi-spec.
0:56:16 > 0:56:17Coming through the front door, you can
0:56:17 > 0:56:21see immediately the finish is to a very, very high standard.
0:56:21 > 0:56:22The flat's lovely and bright.
0:56:22 > 0:56:25It's a good aspect with a south-facing garden
0:56:25 > 0:56:27so you're on the right side of the road.
0:56:27 > 0:56:31I think it will attract people from the kerb appeal.
0:56:31 > 0:56:33Well, that sounds very positive
0:56:33 > 0:56:35but will the figures be equally as encouraging
0:56:35 > 0:56:38when it comes to selling the flat on?
0:56:40 > 0:56:43If I was to put the property on right now,
0:56:43 > 0:56:49I would certainly place it on the market at around about £365,000
0:56:49 > 0:56:51in the hope that offers would certainly come in
0:56:51 > 0:56:55over and above £340,000 to £345,000.
0:56:55 > 0:56:57As the flat currently stands,
0:56:57 > 0:57:03I would put a value of between £350,000 to £360,000
0:57:03 > 0:57:09with an estimated sale price in the region of £340,000 to £345,000.
0:57:11 > 0:57:15What did Behar and Anita make of those valuations?
0:57:15 > 0:57:20We have sold it and we've accepted an offer of 342,500
0:57:20 > 0:57:24which represents a 25% profit after all expenses.
0:57:24 > 0:57:28Well, that £342,500 offer
0:57:28 > 0:57:33will see them make a pretty pre-tax profit of £78,000.
0:57:33 > 0:57:34Not bad for three weeks' work,
0:57:34 > 0:57:37so will they do another property together?
0:57:39 > 0:57:42As a team, I think we work very well
0:57:42 > 0:57:48- and, yeah, delighted with the way we've dovetailed together.- Yeah.
0:57:48 > 0:57:52- Onwards and upwards. - Absolutely.- Yeah.
0:57:54 > 0:57:57We hope you've enjoyed watching Homes Under The Hammer.
0:57:57 > 0:57:59Join us next time for more fascinating stories
0:57:59 > 0:58:01from the auction rooms.
0:58:01 > 0:58:03- Look forward to seeing you then. - Goodbye.- Goodbye.