0:00:02 > 0:00:05- Hello and welcome.- For many, buying at auction offers the chance
0:00:05 > 0:00:08to get hold of properties that need a lot of work.
0:00:08 > 0:00:10People like to put their own stamp on what they buy
0:00:10 > 0:00:13and hopefully make a bit of a profit along the way.
0:00:13 > 0:00:17And you can often manage that if you buy your home under the hammer.
0:00:42 > 0:00:45We love the thrill and the excitement of an auction room.
0:00:45 > 0:00:48You can sometimes sense the hope and frustration in the air.
0:00:48 > 0:00:52You never know quite how it's going to go until the very last second,
0:00:52 > 0:00:56so let's see what tempted the buyers on today's show.
0:00:57 > 0:01:01In Lewisham, south-east London, there's a battle to combat
0:01:01 > 0:01:05the mould creeping through this top-floor two-bedroom flat...
0:01:07 > 0:01:10And another battle, this time against the elements.
0:01:10 > 0:01:12Could the weather be getting the better of this
0:01:12 > 0:01:15mid-terrace in Gilesgate, County Durham?
0:01:17 > 0:01:21And the hard-won fight to redevelop this ambulance hall in Wales.
0:01:21 > 0:01:24It even went before the Welsh Assembly to get approval.
0:01:24 > 0:01:26Five and a half years on, was it worth it?
0:01:29 > 0:01:31All these properties went to auction.
0:01:31 > 0:01:34We'll find out who bought them and what they paid for them
0:01:34 > 0:01:35when they went under the hammer.
0:01:35 > 0:01:37GAVEL BANGS Sold.
0:01:41 > 0:01:43This is Lewisham in south-east London.
0:01:43 > 0:01:46It's an area that could be described as up and coming.
0:01:46 > 0:01:48That means it's still more affordable than
0:01:48 > 0:01:51some of its neighbours such as New Cross and Blackheath,
0:01:51 > 0:01:54and there are regeneration plans aplenty.
0:01:54 > 0:01:58So, investing your money in Lewisham before prices start to escalate
0:01:58 > 0:02:00could be a wise move.
0:02:00 > 0:02:03Now, the property I'm here to see is on this tree-lined
0:02:03 > 0:02:06residential street and it's a two-bedroom first-floor flat
0:02:06 > 0:02:10which had a guide price of 130,000.
0:02:10 > 0:02:14Let's head up those steps and see what we've got to greet us inside.
0:02:17 > 0:02:19There are two other flats in the property
0:02:19 > 0:02:22and the big back garden has been divided into three,
0:02:22 > 0:02:25so that each flat has some valuable outside space.
0:02:26 > 0:02:28Once through the front door, a second door gives
0:02:28 > 0:02:32access to the flat I'm here to see at the top of the property.
0:02:33 > 0:02:36What I love about these properties is the feeling of space.
0:02:36 > 0:02:40Look, that's double, triple, quadruple height.
0:02:40 > 0:02:44You really have got a lot of space all around you.
0:02:44 > 0:02:48It needs a lot of work, though. Bathroom, a complete refit.
0:02:48 > 0:02:50Same goes with the kitchen.
0:02:50 > 0:02:54You've got a little window over here with a nice view of the garden.
0:02:54 > 0:02:57But looking around, you know, you are going to need to spend
0:02:57 > 0:03:00some time and energy, and there is mould, damp...
0:03:00 > 0:03:02I'm not sure what it is.
0:03:02 > 0:03:04It's not looking fantastic and it is worrying me.
0:03:04 > 0:03:06I'm going to investigate further.
0:03:07 > 0:03:10Well, there's me thinking the mould in the kitchen was bad -
0:03:10 > 0:03:14have a look at this! It is everywhere.
0:03:14 > 0:03:16All over the walls and the ceiling,
0:03:16 > 0:03:19even the back wall. It's dripping down.
0:03:19 > 0:03:21Now, I'm not sure whether there's been a big leak.
0:03:21 > 0:03:23I think it's condensation,
0:03:23 > 0:03:27but it's definitely worth getting in a specialist to sort that out
0:03:27 > 0:03:30because you wouldn't want to buy this at auction to later on
0:03:30 > 0:03:33find there are whole heaps of problems with this property.
0:03:33 > 0:03:36Now, if you try to wash it off and paint it,
0:03:36 > 0:03:40mould and its accompanying aroma will come back to haunt you,
0:03:40 > 0:03:44and it's not just the fabric of the building you need to worry about.
0:03:44 > 0:03:47Mould spores settle on your clothes and in your wardrobe, too.
0:03:47 > 0:03:51It can also trigger chest problems and allergies.
0:03:51 > 0:03:54It's a classic sign of poor ventilation,
0:03:54 > 0:03:56which I think may be the problem here.
0:03:56 > 0:03:59But you need to ensure it's not the roof.
0:03:59 > 0:04:01If so, that could be a much more expensive cause.
0:04:01 > 0:04:04# You got to crack that mould... #
0:04:04 > 0:04:08But whatever you do, you've got to crack that problem.
0:04:08 > 0:04:11# Crack that mould, yeah. #
0:04:11 > 0:04:14The two bedrooms don't seem quite as badly affected.
0:04:14 > 0:04:18The large double and the single both have high ceilings that I love,
0:04:18 > 0:04:22and I love that original woodwork that remains in both the rooms.
0:04:22 > 0:04:25The only downside is that both bedrooms overlook the road,
0:04:25 > 0:04:27so that could be noisy.
0:04:28 > 0:04:31I think I've found the solution and it involves
0:04:31 > 0:04:34the living room, which is currently serving as a third bedroom.
0:04:36 > 0:04:39Through here, we've got a fantastic space. Look at this.
0:04:39 > 0:04:41It really is a wonderful room.
0:04:41 > 0:04:46Again, one of the bonuses with this flat is the space you have.
0:04:46 > 0:04:51I'm just wondering, is it worth moving that kitchen into this room,
0:04:51 > 0:04:55and having a kitchen, little dining area, sitting room,
0:04:55 > 0:04:58and then you could call that bedroom number three?
0:04:58 > 0:04:59That is food for thought.
0:05:01 > 0:05:05Another ingredient that might be worth thinking about is the loft.
0:05:05 > 0:05:08This is a leasehold property, so it's vital to know
0:05:08 > 0:05:10whether you would own this as well.
0:05:10 > 0:05:14If it is included for that guide price of 130,000,
0:05:14 > 0:05:18you could really add value if you get a room up there.
0:05:18 > 0:05:21Outside, the property looks to be in pretty good condition.
0:05:21 > 0:05:23The bit of garden allocated for this flat is overgrown
0:05:23 > 0:05:26and hidden right behind the shed.
0:05:26 > 0:05:30Be prepared to get your boots on to clear it before you can sit
0:05:30 > 0:05:32and enjoy the lovely sunshine.
0:05:32 > 0:05:34Look what I have found.
0:05:34 > 0:05:38It's not often you find these little, original, hidden features
0:05:38 > 0:05:41like these. What a gem, have a look.
0:05:41 > 0:05:48Bit of a boot clean for me? No, no mud on my boots. That is brilliant.
0:05:48 > 0:05:51Could the new owner of the flat be about to clean up,
0:05:51 > 0:05:54or will they end up stuck in the mud with this lot?
0:05:54 > 0:05:56We asked a local estate agent to come and have a look
0:05:56 > 0:05:58and get his opinion on the flat.
0:05:58 > 0:06:02I think the property needs a lot of work, it's got a lot of damp.
0:06:02 > 0:06:07Needs a new bathroom, a new kitchen, new flooring, quite a lot to be done.
0:06:08 > 0:06:11Once the mould has been treated and a new bathroom
0:06:11 > 0:06:15and kitchen installed, would the agent try to add a third bedroom?
0:06:15 > 0:06:18In the hallway, it's got quite a lot of space
0:06:18 > 0:06:20to lead a stairway up into the loft,
0:06:20 > 0:06:23so you could quite easily convert another room up there,
0:06:23 > 0:06:24and possibly a bathroom.
0:06:24 > 0:06:26OK, so let's talk figures.
0:06:26 > 0:06:29How much could the flat be worth after a refurbishment
0:06:29 > 0:06:31if it remained a two-bedder?
0:06:31 > 0:06:34When this property is renovated, I think it could reach
0:06:34 > 0:06:38- a maximum of around £230,000. - And with a third bedroom?
0:06:38 > 0:06:40If you extended up into the loft,
0:06:40 > 0:06:45I think this property could sell for £285,000.
0:06:45 > 0:06:48Wow. Even if you take into account the building costs,
0:06:48 > 0:06:50this could be worthwhile.
0:06:50 > 0:06:53Would it make any difference if you were going to rent the property?
0:06:53 > 0:06:55I think this property could rent between £1,000
0:06:55 > 0:06:58and £1,100 per calendar month.
0:06:58 > 0:07:01And the effect a third bedroom could have?
0:07:01 > 0:07:04If you were to extend into the loft, I think this property,
0:07:04 > 0:07:10as a three-bedroom, could rent for up to £1,300-£1,400 per calendar month.
0:07:12 > 0:07:13This flat is a great size
0:07:13 > 0:07:17and you might even be able to squeeze in a third bedroom.
0:07:17 > 0:07:21However, I still have my concerns, as it needs plenty of updating
0:07:21 > 0:07:24and there's that worrying mould to consider.
0:07:24 > 0:07:28Let's head to the auction and find out who was prepared to take it on.
0:07:28 > 0:07:30I move on now to Lot 133.
0:07:30 > 0:07:35It's a two-bedroom raised ground floor flat, in need of updating.
0:07:35 > 0:07:37It's got its own section of garden.
0:07:37 > 0:07:41Who'd like to get me started on this? What about 150?
0:07:41 > 0:07:44OK, we'll start there, 150 I've got. Thank you.
0:07:44 > 0:07:49151, 152, 153, 154, 155.
0:07:49 > 0:07:52Considerable interest at the auction,
0:07:52 > 0:07:56and we rejoin the bids at £180,000.
0:07:56 > 0:08:01180, 181, 182, 183, 184.
0:08:01 > 0:08:05185? Yeah? 185, 186?
0:08:07 > 0:08:09LAUGHTER
0:08:11 > 0:08:16Anybody else? If not, 185 for the first,
0:08:16 > 0:08:19185 for the second,
0:08:19 > 0:08:21185 for the third and final time. Are we all done?
0:08:21 > 0:08:24- GAVEL BANGS - Sold, 185, well bought.
0:08:25 > 0:08:30That successful bidder, paying £185,000, was Grant.
0:08:30 > 0:08:33He and his partner Dawn have bought the flat as an investment.
0:08:33 > 0:08:36The couple have recently had a lifestyle change
0:08:36 > 0:08:41after Grant decided it was time to quit his job in the City.
0:08:41 > 0:08:45# But all-all-all
0:08:45 > 0:08:48# All things must change
0:08:48 > 0:08:53# So don't look back
0:08:53 > 0:08:56# Just walk away. #
0:08:56 > 0:08:59I met them back at the flat to find out more.
0:09:01 > 0:09:05Dawn and Grant, congratulations. I want to know the whole story
0:09:05 > 0:09:09- and how you've ended up with this property.- It was our first auction.
0:09:09 > 0:09:13- Yep.- Which was interesting. We'd had about five properties on the go
0:09:13 > 0:09:17that we were looking at on the day. This one ended up
0:09:17 > 0:09:21a lot more over guide, but it had potential and I liked it.
0:09:21 > 0:09:23Are you a property developer?
0:09:23 > 0:09:26Is this something you've been doing for a long time?
0:09:26 > 0:09:30We started this a year ago, finished a place down in Hampshire
0:09:30 > 0:09:34in Liss Forest, which is just under offer now.
0:09:34 > 0:09:37A lot of work. Moved kitchens, bathrooms, the lot, so...
0:09:37 > 0:09:40What was it that you did before you started the houses?
0:09:40 > 0:09:44It's always been project management but in banking and insurance
0:09:44 > 0:09:45and financial services.
0:09:45 > 0:09:47Why did you want to stop that and move into this?
0:09:47 > 0:09:52- Just a complete lifestyle change. - Yeah, just a complete change
0:09:52 > 0:09:54and just potentially do something different.
0:09:54 > 0:09:58He's much happier. Although he's using the same skills,
0:09:58 > 0:10:01if you will, project management, but it's obviously a different area.
0:10:01 > 0:10:03Plus, you are your own boss.
0:10:03 > 0:10:05It's also planning, and having a proper plan,
0:10:05 > 0:10:08whether it's finding new people if someone doesn't turn up...
0:10:08 > 0:10:11What's it like living with him? Because project-managing,
0:10:11 > 0:10:14making sure you're on time... I mean, is he quite strict?
0:10:14 > 0:10:16- Spreadsheets! - SHE LAUGHS
0:10:17 > 0:10:19- There are spreadsheets.- Yes.
0:10:20 > 0:10:22You've got to laugh. Poor Grant!
0:10:22 > 0:10:24He doesn't stand a chance between us, does he?
0:10:24 > 0:10:28But he will have the last laugh, because being organised
0:10:28 > 0:10:31and keeping tabs on everyone, well, that's the way to go.
0:10:31 > 0:10:39# I go my own way... #
0:10:39 > 0:10:41I wonder WHY the couple have bought the flat.
0:10:41 > 0:10:44Is the intention to sell or rent?
0:10:44 > 0:10:47To...as a long-term investment.
0:10:47 > 0:10:51So the intention is to... having bought it and renovated it,
0:10:51 > 0:10:53we'll put it onto the rental market. That's the plan.
0:10:53 > 0:10:56So are you going to try and reconfigure the space,
0:10:56 > 0:10:57or leave it as it is?
0:10:57 > 0:10:59The bathroom is quite small.
0:10:59 > 0:11:02There is a partition wall between that and the kitchen
0:11:02 > 0:11:04which we'll take down anyway cos it's rotten,
0:11:04 > 0:11:07so there might be configuring to be done there,
0:11:07 > 0:11:10but I like the landing space and I just like the size of it.
0:11:10 > 0:11:12Potentially there could be other changes.
0:11:12 > 0:11:15I've seen people move the kitchen into the lounge,
0:11:15 > 0:11:18and then create a third bedroom. You could have that at the back.
0:11:18 > 0:11:21- That could work, yes. - That could work, just...yeah.
0:11:21 > 0:11:24Hopefully the plumber can work the pipes.
0:11:24 > 0:11:25We'll have a think about it.
0:11:25 > 0:11:28Grant intends to take on a lot of the work himself
0:11:28 > 0:11:31using the skills he learned on his previous project.
0:11:31 > 0:11:33Dawn will provide crucial backup,
0:11:33 > 0:11:36helping to source materials and tradesmen.
0:11:36 > 0:11:40Now to tackle the problem that could scupper all those well-laid plans.
0:11:40 > 0:11:44I have noticed a lot of black mould all over the walls.
0:11:44 > 0:11:45What do you know about it?
0:11:45 > 0:11:47We had a surveyor come in recently
0:11:47 > 0:11:50and he confirmed it was just condensation.
0:11:50 > 0:11:54He tested it with a damp meter and the walls aren't damp.
0:11:54 > 0:11:58So it's just a bad case of condensation.
0:11:58 > 0:12:02Hopefully nothing to get too steamed up about, then!
0:12:02 > 0:12:05And one less expense for that spreadsheet.
0:12:05 > 0:12:08How much does Grant think the work is going to cost?
0:12:10 > 0:12:13We've said 20,000 to do it,
0:12:13 > 0:12:16which incorporates new windows, new kitchen, bathroom,
0:12:16 > 0:12:19new heating. 20,000 should be enough.
0:12:19 > 0:12:22How long do you think this project, start to finish, will take you?
0:12:22 > 0:12:25- Erring on caution, probably three months.- Yeah.
0:12:25 > 0:12:27Guys, congratulations. It's been lovely talking to you both
0:12:27 > 0:12:31- and I can't wait to see what you do with it!- Thanks.- Thank you.
0:12:31 > 0:12:34Grant has his spreadsheets at the ready!
0:12:34 > 0:12:37And with the help of Dawn, I hope they can transform this flat
0:12:37 > 0:12:40without too many issues along the way.
0:12:40 > 0:12:43Will we come back and see a spacious two-bed,
0:12:43 > 0:12:47or will they have squeezed in that third bedroom?
0:12:47 > 0:12:50You can join me later on in the programme to find out.
0:12:54 > 0:12:57There's certainly all the space you could want here,
0:12:57 > 0:13:01taking to the water and paddling down a peaceful river.
0:13:01 > 0:13:05# In a one-seat canoe You're the skipper and crew
0:13:05 > 0:13:09# Messing about on the river. #
0:13:09 > 0:13:13We're in the lively and historic university city of Durham
0:13:13 > 0:13:15in the North-East of England.
0:13:15 > 0:13:18The property I'm here to see is a 15-minute walk away
0:13:18 > 0:13:22from the city centre, in a suburb that retains a lovely village feel.
0:13:25 > 0:13:30So this is Gilesgate, very close to Durham city centre.
0:13:30 > 0:13:34And more importantly, to its student population.
0:13:34 > 0:13:37Yes, we are in Studentland, which makes this property
0:13:37 > 0:13:41potentially very interesting. It's got three bedrooms,
0:13:41 > 0:13:44it's terraced - let's take a look.
0:13:44 > 0:13:50The guide price in the auction catalogue was £49,950-plus.
0:13:50 > 0:13:52OK. Well, through the front door
0:13:52 > 0:13:56and straightaway I'm thinking "Mmm, yes, bit of work required."
0:13:56 > 0:13:59Look at that fuse board. The old fuses...not good.
0:13:59 > 0:14:03So apart from electrics, what else is required?
0:14:03 > 0:14:07Well, down here, glancing into that downstairs room
0:14:07 > 0:14:10which would have originally been the lounge, you can see
0:14:10 > 0:14:13that it has already been used, I think, as some kind of a let,
0:14:13 > 0:14:15because that is laid out as a bedroom.
0:14:15 > 0:14:16A fairly untidy one,
0:14:16 > 0:14:19but a bedroom nevertheless.
0:14:19 > 0:14:23But this room, suddenly, I'm thinking is ideal.
0:14:23 > 0:14:27This is a very large kitchen/living area.
0:14:27 > 0:14:30Now, if you're thinking about using this as a student let,
0:14:30 > 0:14:33this is an ideal room as a kind of common room -
0:14:33 > 0:14:36it has a cooker in here. You'll have to look at lots of things,
0:14:36 > 0:14:38depending on the number of people you have in here,
0:14:38 > 0:14:40in terms of things like fridges and cookers.
0:14:40 > 0:14:44You need a certain ratio for the number of people who are in here,
0:14:44 > 0:14:45but it's a good-sized space.
0:14:45 > 0:14:47I can see this as a really nice communal area.
0:14:47 > 0:14:50It carries on through the back - a bit of a utility area
0:14:50 > 0:14:53and on to the loo, and then upstairs to the bedrooms.
0:14:53 > 0:14:55Erm... Oh, that's nasty.
0:14:57 > 0:14:59Yes. It was all looking quite good until that.
0:14:59 > 0:15:02Moving swiftly on. It's great.
0:15:02 > 0:15:06Well, maybe not. But I'm prepared to give it time to grow on me.
0:15:06 > 0:15:07The mould certainly has.
0:15:07 > 0:15:10There is significant damp here.
0:15:10 > 0:15:14I think our old friend the flat-roof extension is at fault.
0:15:14 > 0:15:16I need to check outside.
0:15:16 > 0:15:18Well, when you're looking at properties,
0:15:18 > 0:15:22it's really important to look at them from all angles -
0:15:22 > 0:15:25literally, in some cases, to take a step back.
0:15:25 > 0:15:28If you head out the front here, and take a look at the roof,
0:15:28 > 0:15:31you can see something which could be a problem.
0:15:31 > 0:15:33The joint in between the two houses there,
0:15:33 > 0:15:35this one and the one next door,
0:15:35 > 0:15:38you can see the tiles look like they've got some problems with them.
0:15:38 > 0:15:40The ridge, to me, looks like
0:15:40 > 0:15:42it could have a few problems with the cement,
0:15:42 > 0:15:45and if you look at the chimney stack,
0:15:45 > 0:15:50again, the pointing on that looks like it's in need of some attention.
0:15:50 > 0:15:53Now, any work on the roof is going to need scaffolding
0:15:53 > 0:15:56if it's to be done safely, and that is going to be expensive.
0:15:56 > 0:15:59So, as I said, whenever you view a property,
0:15:59 > 0:16:02make sure you come outside and give it a good look.
0:16:03 > 0:16:06And while we're talking about maintenance, at the back
0:16:06 > 0:16:10you can see on this unusual elevation more signs of trouble.
0:16:10 > 0:16:12Look at those missing tiles.
0:16:13 > 0:16:17Back inside, on the first floor, there are three bedrooms.
0:16:17 > 0:16:20We've established already that downstairs is let as a bedroom,
0:16:20 > 0:16:24so a student let does look like a possible option.
0:16:24 > 0:16:27However, if you're going to rent this out as an HMO
0:16:27 > 0:16:29- that's a house of multiple occupancy -
0:16:29 > 0:16:33then among a lot of other regulated issues, like fire alarms,
0:16:33 > 0:16:35gas certificates and so on,
0:16:35 > 0:16:38HMO inspectors would look at the suitability of the rooms.
0:16:40 > 0:16:43At the front of the house, there is a good-sized double,
0:16:43 > 0:16:45but the single room is small.
0:16:45 > 0:16:48The third at the back is very small,
0:16:48 > 0:16:50and only has this skylight.
0:16:51 > 0:16:55Would they all qualify as habitable, lettable rooms? I'm not sure.
0:16:55 > 0:16:59This work to comply is something you should research
0:16:59 > 0:17:02and cost out when you're totting up your figures.
0:17:02 > 0:17:06We invited a local estate agent along to find out what
0:17:06 > 0:17:08he would advise for this property
0:17:08 > 0:17:12that was guided at £49,950.
0:17:12 > 0:17:14If it were my own property, I'd take it from a three-bedroom,
0:17:14 > 0:17:17as it is currently upstairs, to a two-bedroom property,
0:17:17 > 0:17:20purely for the reasons that the three bedrooms that we have
0:17:20 > 0:17:23are too small, to my mind, for appealing to a rental market.
0:17:23 > 0:17:26Knocking down walls and so on would cost a bit of money,
0:17:26 > 0:17:28but would it be worth it?
0:17:28 > 0:17:31What if we left the configuration just as it is?
0:17:31 > 0:17:33Under the HMO licensing laws,
0:17:33 > 0:17:36you can still have the three letting rooms within a property,
0:17:36 > 0:17:40utilising what would otherwise be used as a lounge as a third bedroom.
0:17:40 > 0:17:43Any developer buying this would need to weigh up the best returns
0:17:43 > 0:17:47before deciding which way to go - family or student rental.
0:17:47 > 0:17:49Two bedrooms or three? Or sell on?
0:17:49 > 0:17:52How do the figures look for all options?
0:17:53 > 0:17:57If you were to look at owner-occupier values, a resale price could be
0:17:57 > 0:18:01somewhere in the region of £90,000 as a two-bedroom property.
0:18:01 > 0:18:05If it were to go on the open student market for sale, you would be able
0:18:05 > 0:18:08to achieve somewhere in the region of £110-£115,000.
0:18:08 > 0:18:10On a family rental basis,
0:18:10 > 0:18:13I would suggest somewhere in the region of £500 per calendar month.
0:18:13 > 0:18:18On a student market, we rent on the basis of £80 per room per week,
0:18:18 > 0:18:20which would equate to £240 per week,
0:18:20 > 0:18:24a total of £960 per calendar month.
0:18:24 > 0:18:27Don't forget that although this might sound like a no-brainer,
0:18:27 > 0:18:31you have all those regulations to comply with for an HMO let,
0:18:31 > 0:18:35and also, students don't rent for 52 weeks a year.
0:18:35 > 0:18:39Well, this is a good-sized house with masses of potential.
0:18:39 > 0:18:42Yes, there is work to be done,
0:18:42 > 0:18:46but get it right and this really could be a bit of a gold mine.
0:18:46 > 0:18:49Let's see who spotted it when it went under the hammer.
0:18:49 > 0:18:52We're going to go to a three-bedroom mid-terraced property.
0:18:52 > 0:18:56It's got the gas-fired central heating, it's got the double glazing.
0:18:56 > 0:18:59We've got it advertised with a price guide of 49,950 plus.
0:18:59 > 0:19:01Can I ask for 50,000?
0:19:02 > 0:19:10I'll take £46,000. 47 anywhere else. One bid on the left-hand side of 46. Do I have 47?
0:19:10 > 0:19:1647 on the telephone. 48. 48.
0:19:16 > 0:19:1949. 50.
0:19:19 > 0:19:21Shaking your head.
0:19:21 > 0:19:25I'll take 500 if it will help.
0:19:25 > 0:19:3249 and a half. Do I have 50,000? 50,000 on the telephone. 50,500.
0:19:32 > 0:19:37Definitely shaking. Going once at 50,000.
0:19:39 > 0:19:43Sorry. 50,500. 51.
0:19:43 > 0:19:4751 bid. 51 and a half. 52.
0:19:47 > 0:19:5252 and a half bid. 53. 54.
0:19:52 > 0:19:5754 bid. 55.
0:19:57 > 0:19:5955 bid.
0:19:59 > 0:20:0255 and a half. 56. 56 bid.
0:20:02 > 0:20:0856 and a half. 57. Do I have 57 anywhere else?
0:20:08 > 0:20:14Going once at 56 and a half, going for the second time at £56,500.
0:20:14 > 0:20:17Sold to the gentleman standing.
0:20:17 > 0:20:22That final bid of £56,500 was made by Andre
0:20:22 > 0:20:25and Hillary here with daughter Sophie.
0:20:25 > 0:20:27They are both art and design tutors
0:20:27 > 0:20:31and already have a small property portfolio. They are from Halifax.
0:20:31 > 0:20:35They were persuaded to buy this property in Durham by Sophie.
0:20:35 > 0:20:37I met them to find out more.
0:20:39 > 0:20:43- Hillary, Andre, lovely to meet you both. Congratulations.- Thank you.
0:20:43 > 0:20:49- Good place.- It's got character. - Tell me why you wanted to buy it.
0:20:49 > 0:20:55Sophie is studying philosophy at Durham University and is
0:20:55 > 0:20:59renting a house a couple of streets away.
0:20:59 > 0:21:03She thought this might be a good area to buy in. We have let out houses before.
0:21:03 > 0:21:07We have done them up and let them out, but not to students.
0:21:07 > 0:21:11- Right. You bought it for your daughter?- I want more rent than that!
0:21:11 > 0:21:16- You are going to be ruthless, are you?- We're not ruthless.
0:21:16 > 0:21:22What we've done in the past is bought a couple of houses
0:21:22 > 0:21:27to do up in Wales because we like the Gower Peninsula, and it is as an excuse
0:21:27 > 0:21:32for going down and spending time down there. And Durham I really like
0:21:32 > 0:21:34and it would be an excuse to spend more time in Durham.
0:21:34 > 0:21:36And Sophie could help us do this up.
0:21:36 > 0:21:40- It's more than just a property? It's a lifestyle decision.- Yes.
0:21:40 > 0:21:44- Tell me about you two. What do you do?- We teach at York College.- Great.
0:21:44 > 0:21:49- Art and Design.- Fantastic. - We've been teaching life drawing the last couple of days.
0:21:49 > 0:21:54- Life?- Life drawing. Nude model.- This is something different, doing up properties.
0:21:54 > 0:21:57I would have thought you'd be able to bring some of your art
0:21:57 > 0:21:58and design into this.
0:21:58 > 0:22:01- Do you want a mural on the walls? - That would be good.
0:22:01 > 0:22:06In our house at home he has painted lilies on doors and on the walls.
0:22:06 > 0:22:10Good. I'd be disappointed if you don't. Make a feature of it.
0:22:10 > 0:22:15It makes a change from magnolia. But no life drawing please, we're British.
0:22:22 > 0:22:25The couple already rent five properties in Wales
0:22:25 > 0:22:29and Yorkshire, but with Sophie studying here at university
0:22:29 > 0:22:31maybe this could be her next student pad.
0:22:31 > 0:22:35- She could be living in this next year?- She could. She could.
0:22:35 > 0:22:41- If she pays us enough rent.- Come on. It's your daughter.- This is business.
0:22:41 > 0:22:44I think he's joking.
0:22:44 > 0:22:48They have a budget of £7,000 set aside for the project
0:22:48 > 0:22:51and they've got a local management company to take
0:22:51 > 0:22:55care of the letting side of things for a 10% commission.
0:22:55 > 0:22:58But given the condition of the place, there's a lot of work to
0:22:58 > 0:23:01do before this property can be rented out.
0:23:03 > 0:23:07- What are the plans for it?- The roof at the back probably needs replacing.
0:23:07 > 0:23:11- The roof needs a good looking at. - Roofs can be expensive.
0:23:11 > 0:23:14- You could blow seven grand on the roof.- I don't think so.
0:23:14 > 0:23:17We have actually got some quotes and it won't be that much.
0:23:17 > 0:23:21- Don't worry.- We need to check the boiler out. We need to check the electrics.- Yes.
0:23:21 > 0:23:24We're hoping you're not going to come back and say, "They said seven
0:23:24 > 0:23:26"and now it's 20."
0:23:26 > 0:23:28No, no.
0:23:28 > 0:23:31The last house we did a heck of a lot of work.
0:23:31 > 0:23:34But I wouldn't want to get up on a roof.
0:23:34 > 0:23:39A wise decision. Some jobs should be left to the professionals.
0:23:39 > 0:23:42I'm glad to see that these two creative people have a sensible
0:23:42 > 0:23:43and practical approach.
0:23:43 > 0:23:47As property development goes, this could be a work of art.
0:23:47 > 0:23:49MUSIC PLAYS
0:24:08 > 0:24:11The couple are hoping to have the house ready in about six
0:24:11 > 0:24:14months, in time for the next student academic year.
0:24:14 > 0:24:18As they both teach, they'll have time off in the summer to do some
0:24:18 > 0:24:19finishing touches.
0:24:19 > 0:24:21It could work out just fine.
0:24:21 > 0:24:24What are you most looking forward to?
0:24:24 > 0:24:28The point where the roof is done and all the major stuff's done
0:24:28 > 0:24:32and we can just paint and make it look nicer.
0:24:32 > 0:24:35Listen, lovely to meet you both.
0:24:35 > 0:24:39I'm exhausted after that interview. But it's fantastic.
0:24:39 > 0:24:44- Sorry. We can talk for England. You can cut a lot out.- We can cut a lot out.
0:24:44 > 0:24:48But we won't want to. It's all charming. Brilliant. Good luck.
0:24:48 > 0:24:50- Thank you.- Thank you.
0:24:50 > 0:24:53And breathe.
0:24:53 > 0:24:55Wonderful.
0:24:55 > 0:25:00Andre and Hillary have got themselves a great buy here.
0:25:00 > 0:25:04The charming thing is, I kind of don't think they really realise
0:25:04 > 0:25:07quite what a fantastic investment it is.
0:25:07 > 0:25:10I can't wait to see how they go on sorting it out.
0:25:10 > 0:25:14Will there be a special mural painted when we get back?
0:25:14 > 0:25:17Oh, yeah, and will she end up on the roof? Hopefully not.
0:25:17 > 0:25:19You can find out later in the show.
0:25:21 > 0:25:22Coming up...
0:25:22 > 0:25:26What has finally been the fate of this ambulance hall in Wales,
0:25:26 > 0:25:29since we first visited in 2007?
0:25:30 > 0:25:34Our creative couple in Durham didn't have anywhere near that much
0:25:34 > 0:25:38time, but did they manage to dash off a mural, or even a Muriel?
0:25:42 > 0:25:43- LUCY:- But first, in Lewisham,
0:25:43 > 0:25:46did Grant get to the bottom of those black walls?
0:25:46 > 0:25:48All the windows probably had been locked up
0:25:48 > 0:25:50so there was just moisture everywhere.
0:25:54 > 0:25:58Lewisham in south-east London has begun attracting buyers who have
0:25:58 > 0:26:01spotted that it's still a little more affordable than its neighbours,
0:26:01 > 0:26:05even though it has good train access to Docklands and Central London.
0:26:06 > 0:26:09Earlier in the programme, on this tree-lined street,
0:26:09 > 0:26:12the two-bed first-floor flat in this property was
0:26:12 > 0:26:16bought for 185,000 by Grant and his partner Dawn.
0:26:16 > 0:26:19They were about to sell another property they'd already
0:26:19 > 0:26:23refurbished after Grant gave up a job in the city a year ago to
0:26:23 > 0:26:26go into property developing full-time.
0:26:26 > 0:26:28But for this flat, they had other plans.
0:26:30 > 0:26:33The intention is to, having bought it and renovated it,
0:26:33 > 0:26:36put it onto the rental market. That's the plan.
0:26:36 > 0:26:40The most obvious issue about this property was that horrible, black
0:26:40 > 0:26:43mould everywhere, but I wondered what else they were going to tackle.
0:26:43 > 0:26:46So, are you going to try to reconfigure this space
0:26:46 > 0:26:49- or leave it as it is? - The bathroom is quite small.
0:26:49 > 0:26:51There is a partition wall between that
0:26:51 > 0:26:54and the kitchen which we'll take down anyway because it's currently
0:26:54 > 0:26:57rotten, so there might be some configuring to be done there.
0:26:57 > 0:27:00But I like the landing space, and the size of it.
0:27:00 > 0:27:03Potentially there could be other changes. I don't know.
0:27:03 > 0:27:06They'd set a budget of 20,000 and hoped to have the flat ready
0:27:06 > 0:27:08to let in three months.
0:27:09 > 0:27:12It is now four and a half months later and we're back.
0:27:14 > 0:27:18Wow. The flat has really undergone some major changes.
0:27:25 > 0:27:28The staircase now welcomes you into this flat and the beautiful
0:27:28 > 0:27:32open-plan kitchen/living area is at the front of the property.
0:27:36 > 0:27:39They removed the walls that had formed the two front bedrooms
0:27:39 > 0:27:42and this lush, light room is the result.
0:27:43 > 0:27:45But where did the two bedrooms go?
0:27:45 > 0:27:49Well, the former kitchen has become one, as I suggested, and with
0:27:49 > 0:27:52the kitchen relocated to the very front of the flat, the middle
0:27:52 > 0:27:56room that I thought would make a kitchen-diner is now also a bedroom.
0:27:58 > 0:28:00This is the master bedroom.
0:28:00 > 0:28:04Originally, this was one large bedroom, and we decided that
0:28:04 > 0:28:07we wanted to have an en suite in this main bedroom.
0:28:07 > 0:28:10Very happy with the shower, with the tiling.
0:28:10 > 0:28:13The other good thing about this is the pocket doors,
0:28:13 > 0:28:15which I'd never heard of before.
0:28:15 > 0:28:19They save a lot of space because you can just slide them in and out.
0:28:19 > 0:28:22And I think it looks really good.
0:28:22 > 0:28:26It's been a case of change and change about for the flat.
0:28:26 > 0:28:29The only room that remained where it was is the bathroom.
0:28:29 > 0:28:32Same location, but totally refurbished.
0:28:32 > 0:28:36But weren't Grant and Dawn planning to create that third bedroom?
0:28:36 > 0:28:40There was no way we could have had a third bedroom.
0:28:40 > 0:28:42If we'd put in a third bedroom, we would've had to put in another
0:28:42 > 0:28:45window and we didn't go for planning permission for that.
0:28:45 > 0:28:50So we just kept it at two bedrooms, added an en suite and went open-plan.
0:28:50 > 0:28:54And what about that black mould? Was there any damp? What was the cause?
0:28:54 > 0:28:56It was literally just condensation.
0:28:56 > 0:28:59All the rooms were locked up, all the windows were locked up,
0:28:59 > 0:29:01so there was just moisture everywhere.
0:29:01 > 0:29:02It was pure condensation.
0:29:05 > 0:29:09Following the expert's report, they cleaned the mould with bleach
0:29:09 > 0:29:12and white vinegar, and then replaced a lot of the ceilings anyway.
0:29:12 > 0:29:16The flat had new fire doors installed, plus a replacement
0:29:16 > 0:29:19boiler, and the flat roof over the dormer window's been fixed.
0:29:21 > 0:29:23Grant has been on site every day,
0:29:23 > 0:29:25project-managing the team that he's employed, and
0:29:25 > 0:29:30he's been doing a lot of the hard work himself to reduce the costs.
0:29:30 > 0:29:34The loft space is jointly owned by all the flats in the property,
0:29:34 > 0:29:37so Grant and Dawn couldn't make use of it for a third bedroom.
0:29:40 > 0:29:42Although we have lost a bedroom, I think the space works
0:29:42 > 0:29:44a lot better - really open it all up,
0:29:44 > 0:29:47use the double width of the house to make a really huge space
0:29:47 > 0:29:48for living and dining,
0:29:48 > 0:29:52and we've got all the light coming in through both of the windows.
0:29:58 > 0:30:00All the windows in the flat have been replaced,
0:30:00 > 0:30:04and energy-saving lights have been installed throughout.
0:30:04 > 0:30:07Outside, the overgrown garden has been partially cleared,
0:30:07 > 0:30:11and money is being included in the budget to finish the job.
0:30:11 > 0:30:17Talking of funding, how did the initial 20-grand budget fare?
0:30:17 > 0:30:19We've run over - we're ready 4,000 over,
0:30:19 > 0:30:21so we're looking at 24,000.
0:30:21 > 0:30:25The overspend is largely down to adding an en suite
0:30:25 > 0:30:28and relocating the boiler from the original kitchen,
0:30:28 > 0:30:31and with the 185,000 they paid at auction,
0:30:31 > 0:30:35it takes the total investment to £209,000.
0:30:35 > 0:30:39And it sounds like the original plan to rent the property
0:30:39 > 0:30:43- has now changed. - We ideally want to sell it.
0:30:43 > 0:30:45We don't want to keep it as a rental property.
0:30:45 > 0:30:50We would like to just take the profit and then move on to the next one.
0:30:50 > 0:30:51But will there be a profit?
0:30:51 > 0:30:55Don't forget, they paid 55 grand over the guide price,
0:30:55 > 0:30:58and they've gone over the renovation budget.
0:30:58 > 0:31:01Not by a drastic amount, though, but it all adds up.
0:31:01 > 0:31:04We asked two local estate agents what they thought
0:31:04 > 0:31:05of the new configuration.
0:31:05 > 0:31:09Changing the layout has dramatically improved the property.
0:31:09 > 0:31:12They've made a big open space here now, a living space,
0:31:12 > 0:31:15two good-sized bedrooms, and, yes, it's a good improvement.
0:31:15 > 0:31:18What I like about the property, it's light and airy,
0:31:18 > 0:31:21he's kept the original features, the windows he's changed -
0:31:21 > 0:31:24double glazed - keeps the flat nice and warm,
0:31:24 > 0:31:27and he's added a nice en suite bathroom.
0:31:27 > 0:31:30How much do the experts think the flat could now be worth?
0:31:30 > 0:31:34More than the total 209,000 that Grant and Dawn have invested?
0:31:34 > 0:31:38If I was to put this property on the market, I'd hope to achieve
0:31:38 > 0:31:42£255,000 to £260,000.
0:31:42 > 0:31:45If I was to put this property on the market today,
0:31:45 > 0:31:47I would put it on for £260,000.
0:31:47 > 0:31:53Well, a possible profit of £46,000 to £51,000 before taxes
0:31:53 > 0:31:55and expenses, if they were to sell.
0:31:55 > 0:31:59That's roughly fine. I mean, obviously, the garden needs work,
0:31:59 > 0:32:00and we're not in any rush.
0:32:00 > 0:32:02The next place will be somewhere at auction,
0:32:02 > 0:32:05so we'll hold off to the most... maximum value you can get.
0:32:05 > 0:32:08- Or rent it for a year and let it appreciate.- Yeah.
0:32:08 > 0:32:11Well, if there just isn't enough profit for them yet,
0:32:11 > 0:32:15could those rental values prove more attractive?
0:32:15 > 0:32:17If I was to put this property up to rent,
0:32:17 > 0:32:21I would expect it to achieve £1,200 per calendar month.
0:32:21 > 0:32:23If I was to put this property on the market today,
0:32:23 > 0:32:26it would achieve £1,200 per calendar month.
0:32:27 > 0:32:32And that would generate a yield of nearly 7% if they do decide to rent.
0:32:34 > 0:32:37This has been the second property that the couple
0:32:37 > 0:32:40have invested in, after Grant's career change.
0:32:40 > 0:32:43So do they see this as a sustainable business model?
0:32:44 > 0:32:48We need to be pushing three a year.
0:32:48 > 0:32:51I think the next project we'll probably hand over to a builder.
0:32:51 > 0:32:53I'll take far less of a role.
0:32:53 > 0:32:56We'll lose more profit, but we'll turn more...
0:32:56 > 0:32:59- ..per year, and then we will... - Yeah, more properties.
0:32:59 > 0:33:03More properties will be done a year, so... Right now, it's one to two.
0:33:03 > 0:33:06If we can do three to four, that'd be great.
0:33:08 > 0:33:12Yes, with property, it can pay to take the long view,
0:33:12 > 0:33:15like this one we first saw back in 2007.
0:33:15 > 0:33:19I'm in Skewen, just outside Neath in South Wales.
0:33:19 > 0:33:24The area around Neath is famous as the birthplace of, amongst others,
0:33:24 > 0:33:28Richard Burton and Anthony Hopkins, but more specifically,
0:33:28 > 0:33:31Bonnie Tyler was born just a few streets away from here.
0:33:31 > 0:33:34The big question is, will the property I'm here to see
0:33:34 > 0:33:37cause the future purchaser any heartache?
0:33:37 > 0:33:41# It's a heartache
0:33:41 > 0:33:45# Nothing but a heartache... #
0:33:45 > 0:33:47The property's in the middle of a residential street.
0:33:47 > 0:33:50For years, it's been at the heart of village life,
0:33:50 > 0:33:53but it now needs someone to give it some attention.
0:33:57 > 0:34:02What's on offer is this, the former St John Ambulance hall in Skewen.
0:34:02 > 0:34:07Interesting project, potentially. Guide price - 32 grand.
0:34:07 > 0:34:09Let's take a look inside.
0:34:14 > 0:34:17So, through the front door, small foyer there.
0:34:17 > 0:34:21Gents' and ladies' loo, and then through into what is basically
0:34:21 > 0:34:23the primary part of the building, one big room.
0:34:23 > 0:34:25Presumably this is where the St John Ambulance would hold
0:34:25 > 0:34:27their events and do their training.
0:34:27 > 0:34:31There's all sorts of mementos of the time when they did that -
0:34:31 > 0:34:32the old screen there.
0:34:32 > 0:34:35But primarily, this is what you've got.
0:34:35 > 0:34:39Sadly, this building has been out of use for over a year,
0:34:39 > 0:34:43but it has played a vital part in the community, not only as a venue
0:34:43 > 0:34:46for St John Ambulance, which trains people in both first aid
0:34:46 > 0:34:50and health and safety, but it also served as a community hall
0:34:50 > 0:34:52in more recent years - a valuable centre
0:34:52 > 0:34:55for lots of local get-togethers and activities.
0:35:05 > 0:35:08It's always sad to see a community facility disappear,
0:35:08 > 0:35:12but buildings like this often become eyesores when they're left empty,
0:35:12 > 0:35:15and this site offered interesting possibilities.
0:35:16 > 0:35:19At the rear of the property, two really nice bonuses -
0:35:19 > 0:35:23the first is the amount of land that the property comes with.
0:35:23 > 0:35:26It's almost double the size of the actual building itself,
0:35:26 > 0:35:29and it's reasonably flat, which makes development quite easy.
0:35:29 > 0:35:32The next bit of good news is that on either side you've got residential
0:35:32 > 0:35:35development, so when it comes to getting planning permission,
0:35:35 > 0:35:37a precedent has been set.
0:35:37 > 0:35:40But the second bit of really good news is the fact that at the rear
0:35:40 > 0:35:44of the property there, behind that hedge, is a small alleyway.
0:35:44 > 0:35:48That gives you really vital rear access to the property.
0:35:48 > 0:35:51That's great when it comes to redevelopment. You can get
0:35:51 > 0:35:54the building materials in and the rubbish out, but when
0:35:54 > 0:35:57it comes to what you build here, you'll be able to offer somebody,
0:35:57 > 0:36:00say, a way of getting the car into a garage or something like that.
0:36:00 > 0:36:01Really good news.
0:36:03 > 0:36:06I thought it was prime development material.
0:36:06 > 0:36:09With a guide price of just £32,000, there was
0:36:09 > 0:36:12a chance of spinning it into a moneymaking venture.
0:36:12 > 0:36:16Well, sad though it is to say it, I'm afraid that
0:36:16 > 0:36:19the old St John Ambulance hall in Skewen
0:36:19 > 0:36:24is probably destined for the portfolio of a property developer.
0:36:24 > 0:36:26Let's find out who bought it at the auction.
0:36:26 > 0:36:30Lot 28, ladies and gentlemen is the former ambulance hall,
0:36:30 > 0:36:35with redevelopment potential now. Who has got 50 for it to start?
0:36:35 > 0:36:41Can I see 50, anybody? Can I see 40? Well, bid me 35. Let's start.
0:36:41 > 0:36:46Who has got 35? 30 then? 30, thank you, sir. 30,000, I am bid.
0:36:46 > 0:36:5232 I'm bid. At 32. Four. At 34. Half then. 34 and a half.
0:36:52 > 0:36:56- Five if you like now. At 35.- 35.
0:36:56 > 0:36:58Lots of interest on the auction day,
0:36:58 > 0:37:01and we rejoin the bidding at 54,000.
0:37:01 > 0:37:08At 54. 55. 55 and again, 56. At 56. Can I make it eight, sir? 58.
0:37:08 > 0:37:13Thank you. And 60 if you like, please. 60 bid. And two. 62.
0:37:13 > 0:37:17Four, will you? Four is bid. 64. 66.
0:37:17 > 0:37:21At 66, he's going to get it, then. At 66. 68.
0:37:21 > 0:37:23At 68, 70 on the aisle.
0:37:23 > 0:37:28Two I'm bid. At 72, 74, at 74, and again, please.
0:37:28 > 0:37:32Are you all done at £74,000?
0:37:32 > 0:37:36Five, thank you. At 75. 76. 76,000.
0:37:36 > 0:37:40The hammer is up. I'm not going to take all day. Seven. 77. 78.
0:37:40 > 0:37:45And again, sir. 78, please. Nine if you like. Nine. 79. 80 I'm bid.
0:37:45 > 0:37:50I will take one more if you're quick. At 81. 81, 82.
0:37:50 > 0:37:54At 82, three, can I? At £82,000.
0:37:54 > 0:37:57Yes or no? At £82,000.
0:37:57 > 0:38:01- GAVEL DROPS - Yours, sir, thank you very much. 82,000.
0:38:02 > 0:38:04And after that hard-fought auction,
0:38:04 > 0:38:09the successful bidder paying £82,000 was Gethin, a former builder
0:38:09 > 0:38:12and now an enthusiastic property developer.
0:38:12 > 0:38:15Will he rescue this building? I met him to find out.
0:38:15 > 0:38:17# Rescue me
0:38:17 > 0:38:19# Or take me in your arms... #
0:38:19 > 0:38:21All of my family are in the building trade.
0:38:21 > 0:38:23I've grown up through the building trade.
0:38:23 > 0:38:25Decided to take the jump and bought my first property eight,
0:38:25 > 0:38:27nine years ago.
0:38:27 > 0:38:31Renovated it, rented it out. That worked well. Moved on to the next.
0:38:31 > 0:38:32Moved on to the next.
0:38:32 > 0:38:36Just as everyone else seemed to be getting to grips with buy-to-let,
0:38:36 > 0:38:39and the competition started getting a bit more fierce,
0:38:39 > 0:38:41we looked at land.
0:38:41 > 0:38:45And the first development went well, the second went well.
0:38:45 > 0:38:48And now, where everyone is looking at land, we are
0:38:48 > 0:38:52looking at something else. But what it is, I don't know yet.
0:38:57 > 0:39:00Not only do Gethin and his wife Sally run a property business,
0:39:00 > 0:39:02they also own a shop fitting company
0:39:02 > 0:39:04which funds their development projects.
0:39:04 > 0:39:08And Gethin has spotted the potential here straightaway.
0:39:10 > 0:39:13As soon as I saw the property coming up for sale, I came down
0:39:13 > 0:39:17and kind of measured the area to see what we could do with it, so we
0:39:17 > 0:39:21had a good plan of what we were going to do before we purchased it.
0:39:21 > 0:39:22Which is what?
0:39:22 > 0:39:25We're going to put on a pair of semidetached houses,
0:39:25 > 0:39:29quite like a pair I have built in another area of Swansea.
0:39:29 > 0:39:33Hopefully, subject to planning, we should get it through.
0:39:33 > 0:39:35We literally put the planning application in a couple of days
0:39:35 > 0:39:39after the auction, before we completed, just to get the heads up.
0:39:39 > 0:39:42That's how confident we are in getting something on here.
0:39:42 > 0:39:44Using his building background,
0:39:44 > 0:39:47Gethin had planned to build the semis himself with
0:39:47 > 0:39:50the help of several employees to get the costs down.
0:39:50 > 0:39:55We're looking at 180, £190,000 total outlay for two semidetached houses
0:39:55 > 0:39:59hopefully that we're going to retain and rent out as a return.
0:39:59 > 0:40:01Now, this obviously was a fairly important
0:40:01 > 0:40:04part of the community at some stage. The whole St John Ambulance
0:40:04 > 0:40:07and everything they do is marvellous, obviously.
0:40:07 > 0:40:09- Is there any sort of sense of sadness at that?- Yes, there is.
0:40:09 > 0:40:13It's not realistic to keep it running as a community centre.
0:40:13 > 0:40:16Someone has got to come in and do something with it,
0:40:16 > 0:40:19otherwise it is just going to be boarded up and will go into disarray.
0:40:19 > 0:40:23If I provide two new homes for people, from the area, hopefully,
0:40:23 > 0:40:27then I think we will have made good use of the land.
0:40:27 > 0:40:30# Rescue me Rescue me. #
0:40:33 > 0:40:35When we returned five months later, there was
0:40:35 > 0:40:37no sign of two semis thus far,
0:40:37 > 0:40:41despite Gethin 's initial confidence about getting planning permission.
0:40:41 > 0:40:45The council turned us down on the basis that they think
0:40:45 > 0:40:50we were over-developing and a cramped development of the site.
0:40:50 > 0:40:52That wasn't the only issue. The council also had reservations
0:40:52 > 0:40:57about how the semis looked and how they fitted into the streetscape.
0:40:57 > 0:41:01It's very hard to blend a property into a street that has predominantly
0:41:01 > 0:41:08terraced houses, detached dwellings, detached single-storey bungalows.
0:41:08 > 0:41:12We thought that a pair of semis fits in just right.
0:41:12 > 0:41:15Buildings like these have been a focal point for the local
0:41:15 > 0:41:18community and arouse strong feeling,
0:41:18 > 0:41:21so maybe you can understand the local resistance.
0:41:21 > 0:41:25But Gethin was keen to show us the plans that had so far been rejected.
0:41:26 > 0:41:30This is an artistic impression of what we intend to put here,
0:41:30 > 0:41:33and this went in with our original application.
0:41:33 > 0:41:36It's basically two three-bedroom semidetached
0:41:36 > 0:41:40houses, utilising the attic for the third bedroom.
0:41:40 > 0:41:44We kept it back off the road to allow for a car-park spacing,
0:41:44 > 0:41:47as well as a detached garage to the rear of the property.
0:41:47 > 0:41:51I think this is the design that should be sat in the street.
0:41:51 > 0:41:54Gethin was so sure that it was the right property to replace
0:41:54 > 0:41:58the old ambulance hall, that he had appealed to the Welsh Assembly.
0:41:58 > 0:42:01What if it was bad news?
0:42:01 > 0:42:04# I don't want to wait in vain. #
0:42:04 > 0:42:09Plan B, if we lose our appeal, is to develop this into one property,
0:42:09 > 0:42:11reflecting more or less the property to the right of us,
0:42:11 > 0:42:15a large, 4/5 bedroom property. However, it is
0:42:15 > 0:42:18not a property that we would want to keep on our stock for rental.
0:42:18 > 0:42:20For that reason,
0:42:20 > 0:42:24Gethin was determined to pursue his plan A, through the appeal
0:42:24 > 0:42:28process, and he had other reasons to believe he was on the right track.
0:42:30 > 0:42:33The development that we intend to put here, basically,
0:42:33 > 0:42:37it sits on the footprint of the original building behind me.
0:42:37 > 0:42:42The garages will be at the back of the property and then we have
0:42:42 > 0:42:44two long, private gardens
0:42:44 > 0:42:49with two feather-edge-fence retained walls.
0:42:49 > 0:42:52It should give a nice kind of privacy to each dwelling.
0:42:55 > 0:42:57Gethin had already spent several thousand
0:42:57 > 0:43:00pounds on his planning application and appeal over
0:43:00 > 0:43:04and above the original £82,000 purchase price.
0:43:04 > 0:43:08But his build costs had come down from what he first anticipated.
0:43:09 > 0:43:12If we win the appeal and we get the two dwellings that we want,
0:43:12 > 0:43:14we're looking at construction costs
0:43:14 > 0:43:18in the region of £100,000-£120,000 for the pair of semidetached.
0:43:18 > 0:43:22If we do not win the appeal and we subsequently then apply for one
0:43:22 > 0:43:27dwelling, then we would be looking at £80,000-£90,000 in costs.
0:43:27 > 0:43:29It meant Gethin was looking at a total
0:43:29 > 0:43:35investment of around £170,000 for a single property and £200,000
0:43:35 > 0:43:39for the semidetached properties that he really wanted to build.
0:43:39 > 0:43:44Join us later in the programme, five and half years later, to find
0:43:44 > 0:43:47out what, if anything, Gethin did build.
0:43:50 > 0:43:53Now, finding good tradesmen is often the key to getting a property
0:43:53 > 0:43:56done up well and on time.
0:43:56 > 0:44:00But some people choose to do it themselves to keep the budget down.
0:44:00 > 0:44:04So, have our buyers been getting stuck in or just stuck?
0:44:04 > 0:44:06Let's find out.
0:44:08 > 0:44:11We're now returning to the city of Durham in the north-east
0:44:11 > 0:44:13of England where, earlier in the programme,
0:44:13 > 0:44:17in the suburb of Gilesgate, this three-bed semi was
0:44:17 > 0:44:22bought for £56,500 by arts tutors Andre and Hillary.
0:44:22 > 0:44:25They already have properties in Wales, which they love,
0:44:25 > 0:44:28and in Yorkshire where they come from.
0:44:28 > 0:44:31Their daughter, Sophie, is a student in Durham,
0:44:31 > 0:44:34and she persuaded her parents that this would be a good place to
0:44:34 > 0:44:36add to their portfolio.
0:44:37 > 0:44:40We have let out houses before, done them up and let them out,
0:44:40 > 0:44:43- but not to students.- You bought it for your daughter then, or...?
0:44:43 > 0:44:46Well, I want more rent than that, so...
0:44:46 > 0:44:50- Oh, you're going to be ruthless, are you?!- No, we're not ruthless!
0:44:50 > 0:44:53The couple had a budget of £7,000 and hoped to have the property
0:44:53 > 0:44:56ready for the next academic year in about six months.
0:44:59 > 0:45:01Well, it's now ten and half months after our first visit
0:45:01 > 0:45:05and we return to meet the family again.
0:45:08 > 0:45:10The former kitchen at the back has been cleared
0:45:10 > 0:45:13and the room is now a living area once again, because the
0:45:13 > 0:45:17kitchen has been relocated into the utility room
0:45:17 > 0:45:19in the rear extension.
0:45:19 > 0:45:23You still have to go through the kitchen to get to the bathroom
0:45:23 > 0:45:27where the suite has been retained and new flooring laid.
0:45:30 > 0:45:33But the plans for the property have taken a detour.
0:45:33 > 0:45:35Well, when we originally bought the property
0:45:35 > 0:45:38we planned to rent it to four students,
0:45:38 > 0:45:41and that all looked great, and then, we found
0:45:41 > 0:45:45out that there are HMO regulations which mean room sizes have to
0:45:45 > 0:45:49be a specific size in communal areas, so, in the end,
0:45:49 > 0:45:53we realised that we couldn't do it, even if we shifted walls
0:45:53 > 0:45:55and sorted things out.
0:45:55 > 0:45:59We ended up having to keep it as more of a family home,
0:45:59 > 0:46:02and we're actually renting it out to a couple now, which is great.
0:46:02 > 0:46:05Yeah, and they are lovely, so, I feel good about that.
0:46:05 > 0:46:10# Gonna make you feel Gonna make you feel good. #
0:46:12 > 0:46:13It means upstairs
0:46:13 > 0:46:18the three bedrooms have remained in their original configurations,
0:46:18 > 0:46:21decorated, and the damp doors dealt with.
0:46:23 > 0:46:28Downstairs, the living room has been returned to its original use.
0:46:28 > 0:46:31So, originally, this was going to be a bedroom,
0:46:31 > 0:46:33but now, we have turned it into a family house,
0:46:33 > 0:46:37and we have made this a cosy sitting area,
0:46:37 > 0:46:41put a nice settee in, got a coffee table, cleaned the fireplace up,
0:46:41 > 0:46:43and we hope that the tenants really enjoy it.
0:46:43 > 0:46:46But treating the damp in the former kitchen threw up some
0:46:46 > 0:46:48unexpected problems.
0:46:49 > 0:46:54Well, when we came to this wall, we had real problems with the damp.
0:46:54 > 0:46:58There was poor guttering and it was letting in a lot of water,
0:46:58 > 0:47:01the slates on the roof needed sorting.
0:47:01 > 0:47:04There was also another problem - there were some units here
0:47:04 > 0:47:07and when they took them out, they found some dry rot.
0:47:07 > 0:47:11That had to be sorted and that was quite costly and time-consuming.
0:47:11 > 0:47:15Now it's been plastered and redecorated, I think it's got
0:47:15 > 0:47:18a much homelier feel. I just hope the tenants enjoy it.
0:47:20 > 0:47:24The work took longer than expected. A replacement builder
0:47:24 > 0:47:26had to be found and the couple didn't have much time
0:47:26 > 0:47:31to travel up from Halifax as Andre had extra work commitments.
0:47:31 > 0:47:35But with Sophie's help, they did a lot of the decorating themselves.
0:47:35 > 0:47:37Unfortunately they didn't get
0:47:37 > 0:47:40a "wet paint" sign up in time for their viewings.
0:47:40 > 0:47:42Oh, it was really funny. We got a lovely couple
0:47:42 > 0:47:47that came to have a look at the property and they're going to take the property on.
0:47:47 > 0:47:51And it was so funny because we'd just recently painted the door frames,
0:47:51 > 0:47:56and the chap walked through the door frame, got paint on his shoes
0:47:56 > 0:47:59and we were so desperate that we were knelt on the floor wiping his shoes.
0:47:59 > 0:48:01He was going, "No, no, don't, you're the landlord."
0:48:01 > 0:48:04We were both running and getting cloths and rubbing his shoes madly.
0:48:04 > 0:48:07- They were laughing their heads off. - I don't know, it just seems...
0:48:07 > 0:48:10It's probably really odd. Especially when you don't know people.
0:48:10 > 0:48:12# Didn't want to leave you with the wrong impression
0:48:12 > 0:48:16# Didn't want to leave you with my last confession, yeah... #
0:48:16 > 0:48:20Well, let's just gloss over that. Time to "brush up" on the budget.
0:48:20 > 0:48:23Did that stick to what it said on the tin?
0:48:23 > 0:48:26Well, I think we originally estimated about 7,000,
0:48:26 > 0:48:32but with solicitors' costs, auction fees, unexpected things that happened like the dry rot, the roof,
0:48:32 > 0:48:35it ran to about 11,000 at the end.
0:48:36 > 0:48:38With the 56,500 they spent at auction,
0:48:38 > 0:48:43it takes the total investment to 67,500.
0:48:43 > 0:48:47Time to see what two local estate agents think of the finish
0:48:47 > 0:48:50- they've achieved.- I think it was a good idea not to pursue
0:48:50 > 0:48:52the student route for this property.
0:48:52 > 0:48:54The sizes of the three bedrooms upstairs would always
0:48:54 > 0:48:56make it difficult for student occupation.
0:48:56 > 0:48:58Overall, the property is deceptively spacious.
0:48:58 > 0:49:01I think the property could be improved
0:49:01 > 0:49:03by refitting the kitchen and also the bathroom.
0:49:03 > 0:49:07Before marketing, I'd definitely recommend that the owner would spend money on improving the outside,
0:49:07 > 0:49:09so people have some outside space to enjoy.
0:49:09 > 0:49:13For both rental and sale, downstairs is now a very good size, creating two
0:49:13 > 0:49:16good-sized reception rooms and moving the kitchen into the utility room.
0:49:16 > 0:49:19However, I still fear there's an issue upstairs
0:49:19 > 0:49:20with the sizes of the bedrooms.
0:49:20 > 0:49:23OK, let's see if that could impact on the valuation.
0:49:23 > 0:49:29Could the property be worth more than the £67,500 invested?
0:49:29 > 0:49:32In the current configuration for the property, I'd recommend
0:49:32 > 0:49:35an asking price in the region of 80-£85,000.
0:49:35 > 0:49:38If the upstairs was to be reconfigured into two good-sized bedrooms,
0:49:38 > 0:49:41then I would recommend an asking price in the region of £90,000.
0:49:41 > 0:49:44I'd currently value the property at £75,000.
0:49:44 > 0:49:48If the owner were to improve the upstairs layout to create two bigger bedrooms,
0:49:48 > 0:49:52this would increase the valuation to £85,000.
0:49:52 > 0:49:57That valuation range for the current three-bedroom configuration
0:49:57 > 0:50:00would generate a profit of £7,500-£17,500
0:50:00 > 0:50:05before taxes and expenses, with the potential to increase it
0:50:05 > 0:50:10to £22,500 if the bedrooms were changed to two large rooms.
0:50:11 > 0:50:15I'd be happier with the kind of 80-85 estimate and looking at maybe
0:50:15 > 0:50:20- doing things to add...- Work towards, you know, sort of like
0:50:20 > 0:50:24achieving the 90,000 figure.
0:50:24 > 0:50:27Interestingly, both agents agreed the rental income would be
0:50:27 > 0:50:31£450 per calendar month in its current configuration
0:50:31 > 0:50:35or with two large bedrooms - a yield of 8%.
0:50:35 > 0:50:39And Hillary and Andre are achieving a slightly higher figure.
0:50:39 > 0:50:43It's very unusual that you find out a two-bedroom gets the same rent
0:50:43 > 0:50:47as a three bed, but this demonstrates that sometimes
0:50:47 > 0:50:49people do value just space.
0:50:49 > 0:50:52They haven't added a student let to their portfolio.
0:50:52 > 0:50:55I wonder if they'll be trying again.
0:50:55 > 0:50:58I think we'll maybe do another one, but give it a bit of time.
0:50:58 > 0:51:03Yes. All the complications have made us think it is perhaps a little
0:51:03 > 0:51:07bit harder renting to students than you actually first think.
0:51:12 > 0:51:17It's true. Things rarely are quite as easy as they look in this game,
0:51:17 > 0:51:22as we discovered in Skewen, South Wales, when back in 2007
0:51:22 > 0:51:27this former St John Ambulance Hall was bought for £82,000
0:51:27 > 0:51:30by Gethin, who comes from a family of builders.
0:51:30 > 0:51:34He and his wife run a business building new properties.
0:51:34 > 0:51:38He submitted a planning application for a pair of three bedroom semidetached houses.
0:51:38 > 0:51:42Unfortunately, when we returned five months later,
0:51:42 > 0:51:44there was bad news.
0:51:44 > 0:51:47The council turned us down on the basis that
0:51:47 > 0:51:51they think we're over-developing and a cramped development of the site.
0:51:51 > 0:51:55There had been strong local objections to the two houses
0:51:55 > 0:51:57and the change of use of the hall.
0:52:00 > 0:52:03Gethin had appealed to the Welsh Assembly and was considering
0:52:03 > 0:52:09submitting a revised plan for one detached house if the appeal was unsuccessful.
0:52:09 > 0:52:12If we win the appeal and we get the two dwellings that we want,
0:52:12 > 0:52:16we're looking at construction costs in the region of 100, 120,000.
0:52:16 > 0:52:21If we don't win the appeal and we subsequently then apply for one dwelling, then we'd be looking at
0:52:21 > 0:52:24about 80 to £90,000 in costs.
0:52:24 > 0:52:31So, was it one house, was it two? In fact, did Gethin manage to build anything at all?
0:52:31 > 0:52:35# It's been a long time But now we've come home... #
0:52:35 > 0:52:39It's now five and a half years since we last met him
0:52:39 > 0:52:45and back in Skewen, there are now two semis where the former St John Ambulance hall once stood.
0:52:49 > 0:52:56# It's been a long time But now we've come home... #
0:52:56 > 0:52:58Even allowing for the appeal process,
0:52:58 > 0:53:02this has obviously been a protracted building project for Gethin.
0:53:02 > 0:53:03So, why the delay?
0:53:03 > 0:53:08We successfully won the appeal. Just when we were gearing up to start with the build,
0:53:08 > 0:53:11there was a big economic downturn in the housing market
0:53:11 > 0:53:14and we basically put it on the back burner
0:53:14 > 0:53:17until the timing was right, which we felt about 18 months ago,
0:53:17 > 0:53:19and now we're at completion.
0:53:20 > 0:53:24The two semis are mirror images of each other, each one having
0:53:24 > 0:53:26a rear bedroom on the first floor,
0:53:26 > 0:53:28plus a family bathroom in the middle of the house
0:53:28 > 0:53:30and a smaller second bedroom at the front.
0:53:30 > 0:53:35My favourite is bedroom three up in the attic area.
0:53:38 > 0:53:42Back on the ground floor, the living room feels surprisingly spacious
0:53:42 > 0:53:45and they've even squeezed in a downstairs loo.
0:53:45 > 0:53:51Feeding off the lounge is a kitchen, with a small area for a kitchen table and chairs.
0:53:51 > 0:53:55We have an area here for the dishwasher or washing machine,
0:53:55 > 0:53:57the fitted appliances. I'm very pleased with
0:53:57 > 0:53:59the way the kitchen's come out.
0:53:59 > 0:54:02We haven't got a lot of room to play with to start with.
0:54:02 > 0:54:06Quite a workable kitchen really for the size of the property.
0:54:06 > 0:54:09One change to Gethin's original planning application
0:54:09 > 0:54:10was to bring the houses forward
0:54:10 > 0:54:13to be in line with the neighbouring properties.
0:54:13 > 0:54:16But there was no leeway on the side of the build.
0:54:18 > 0:54:23We couldn't really maximise anything on the width of the plot. The only thing
0:54:23 > 0:54:29we had to play with was length and the aided benefit of the back access to the back of the property.
0:54:29 > 0:54:31So we put in a reasonable-sized garden,
0:54:31 > 0:54:34a decking area which is block paved
0:54:34 > 0:54:39and a very nice detached garage to complement the property.
0:54:39 > 0:54:43# It's been a long time coming
0:54:43 > 0:54:47# It's been a long time coming... #
0:54:47 > 0:54:51After waiting for the property market to show signs of recovery,
0:54:51 > 0:54:53how long did the build actually take?
0:54:53 > 0:54:56We've done it as a bit of a gap-fill between projects.
0:54:56 > 0:54:59So 18 months to two years' development,
0:54:59 > 0:55:03where we could normally turn these round in about five to six months.
0:55:03 > 0:55:07What effect did all that have on Gethin's build costs?
0:55:07 > 0:55:14He had anticipated a spend of around 100-£120,000 for the two semis.
0:55:14 > 0:55:19The total cost of the build came in approximately about £100,000
0:55:19 > 0:55:21for the two properties including the garages.
0:55:21 > 0:55:23With the £82,000 he paid at auction,
0:55:23 > 0:55:27it takes Gethin's total investment to £182,000.
0:55:27 > 0:55:30I'm not tempted to sell these properties at all.
0:55:30 > 0:55:33They're purposely designed for the rental market.
0:55:33 > 0:55:36I'm just looking for the right tenants now to move in.
0:55:38 > 0:55:42We asked two local estate agents to cast their eyes over the properties.
0:55:42 > 0:55:47- What's their verdict on this pair of semis?- Very nice. It's nice to see
0:55:47 > 0:55:50something's been done here after all these years.
0:55:50 > 0:55:53Lovely finish on the outside. Very attractive.
0:55:53 > 0:55:57I think the size and shape of the property is desirable for the area.
0:55:57 > 0:56:01It's well laid out and there's a nice flow to the property.
0:56:01 > 0:56:04They seem very spacious. They've managed to include a cloakroom
0:56:04 > 0:56:06and a lovely kitchen-breakfast area,
0:56:06 > 0:56:09and the standard of finish seems excellent.
0:56:09 > 0:56:13There's a good-size rear garden, and the off-road parking to the rear
0:56:13 > 0:56:15is a bonus as the road is quite narrow.
0:56:15 > 0:56:18The outside space here is tremendous.
0:56:18 > 0:56:22The garden's a great size and finished to a very high standard.
0:56:22 > 0:56:24A positive response, then, from the agents.
0:56:24 > 0:56:29But how much rental income do they envisage the properties achieving?
0:56:29 > 0:56:32For rental, each property could achieve between
0:56:32 > 0:56:36500 up to £525 per calendar month.
0:56:36 > 0:56:40For rental purposes, we would look to achieve £525 per calendar month
0:56:40 > 0:56:41for each property.
0:56:41 > 0:56:46If both houses were let at £525 per calendar month,
0:56:46 > 0:56:49that would produce a yield of almost 7%.
0:56:49 > 0:56:53I think 525 I'm quite happy with. I would rather push for 550.
0:56:53 > 0:56:57Given that they're new properties, I think there's a little bit of a premium to be had,
0:56:57 > 0:57:00but I'm comfortable with 525.
0:57:00 > 0:57:02And do the agents value the houses
0:57:02 > 0:57:06at more than the £182,000 Gethin has invested?
0:57:06 > 0:57:09If we were to put these properties up for sale,
0:57:09 > 0:57:12we would look to achieve £125,000 per property.
0:57:12 > 0:57:16Each individual property, I would put on the market
0:57:16 > 0:57:19for between 120 and £125,000.
0:57:19 > 0:57:24That top value of £125,000
0:57:24 > 0:57:28would give Gethin a profit of £68,000,
0:57:28 > 0:57:32minus, of course, the usual taxes and expenses.
0:57:35 > 0:57:39Spot on to what I think to the property prices. 125,000 ballpark.
0:57:39 > 0:57:43It's now almost six years since our first visit. What with
0:57:43 > 0:57:47the planning appeal and the delayed start following the recession,
0:57:47 > 0:57:51does Gethin think that the project has been worthwhile?
0:57:51 > 0:57:55Yes, definitely. I'm able to give two nice properties to the locality.
0:57:55 > 0:57:58I know the locality very well.
0:57:58 > 0:58:01And I think I'm happy to move on to the next one.
0:58:01 > 0:58:04And might he now sell?
0:58:04 > 0:58:08No. Not tempted to sell at all.
0:58:10 > 0:58:11Well, that's it for today.
0:58:11 > 0:58:14Join us next time for more Homes Under the Hammer.
0:58:14 > 0:58:16- We'll look forward to seeing- you then. BOTH: Goodbye.