0:00:02 > 0:00:05Hello. In today's market, it can be difficult to get
0:00:05 > 0:00:06your own piece of house heaven.
0:00:06 > 0:00:09Whether it's large or small, auctions are a great place to start.
0:00:09 > 0:00:13So, follow us now as we meet three brave buyers
0:00:13 > 0:00:16who bought their homes under the hammer.
0:00:41 > 0:00:44If you choose to gamble and place a bet on property,
0:00:44 > 0:00:46you may want to go to the auctions.
0:00:46 > 0:00:50The atmosphere is electric and the action, well, it's fast and furious.
0:00:50 > 0:00:54Here are the properties we're featuring today.
0:00:54 > 0:00:58'This tiny Carlisle terrace leaves me a little lost.'
0:00:58 > 0:00:59What's this?
0:01:01 > 0:01:03Where am I now, then?
0:01:04 > 0:01:06'And I'm also trying to find my bearings
0:01:06 > 0:01:08'at this seaside cottage in Kent.'
0:01:08 > 0:01:10Slightly bewildering.
0:01:10 > 0:01:12Is this the front?
0:01:12 > 0:01:14The back? I don't know!
0:01:14 > 0:01:17'And could a very low guide price on this three bed semi in Derby
0:01:17 > 0:01:19'mean trouble ahead?'
0:01:19 > 0:01:22Could it be just the location on this road that's the problem?
0:01:22 > 0:01:24Or is there more?
0:01:25 > 0:01:27All these properties have been sold at auction.
0:01:27 > 0:01:30We'll find out who bought them and what they paid for them
0:01:30 > 0:01:32when they went under the hammer.
0:01:32 > 0:01:34It's going to be sold...
0:01:36 > 0:01:38# Come with me
0:01:38 > 0:01:42# My love
0:01:42 > 0:01:44# Into the sea
0:01:44 > 0:01:47# The sea of love... #
0:01:47 > 0:01:51I do like to be beside the seaside and this lovely stretch
0:01:51 > 0:01:56of sandy beach is Minnis Bay in the village of Birchington in Kent.
0:01:56 > 0:01:59Just up the coast from Margate,
0:01:59 > 0:02:02it's a popular place for pensioners and families alike.
0:02:02 > 0:02:08I wonder if today's auction lot will be a similarly sunny proposition.
0:02:08 > 0:02:12The property I am here to see is just a five-minute drive to the
0:02:12 > 0:02:16beach, so already I am excited and I know it's worth a look.
0:02:16 > 0:02:21First impressions, though, slightly bewildering. Is this the front?
0:02:21 > 0:02:24The back? There's off-street parking here,
0:02:24 > 0:02:26which is fantastic,
0:02:26 > 0:02:28but is this also your garden?
0:02:28 > 0:02:29I don't know!
0:02:29 > 0:02:31What I do know is there's two bedrooms
0:02:31 > 0:02:35and it had a guide price of £75,000-£80,000.
0:02:36 > 0:02:40Apparently, this used to be the rear of the property, until it
0:02:40 > 0:02:42became commonplace to have a car,
0:02:42 > 0:02:44and the frontages were switched.
0:02:44 > 0:02:46Useful to have the parking, for sure,
0:02:46 > 0:02:49particularly as this cul-de-sac is a tight squeeze.
0:02:51 > 0:02:54It's a bit of a luxury to have a downstairs loo
0:02:54 > 0:02:56in a two-bedroom property,
0:02:56 > 0:03:00but my guess is this would have been the outside toilet originally,
0:03:00 > 0:03:01because this is an add-on.
0:03:01 > 0:03:04But I'd keep that. I mean, that is a bonus.
0:03:04 > 0:03:07And look at this lovely kitchen! A great space.
0:03:07 > 0:03:11These old-fashioned '50s units are fantastic, I love them.
0:03:11 > 0:03:14And, over here, you've got this sort of fireplace area.
0:03:14 > 0:03:16It's been utilised and made into a cupboard.
0:03:16 > 0:03:20Storage heaters, so there's no gas central heating here.
0:03:20 > 0:03:22Whoever takes this on might want to change that.
0:03:22 > 0:03:25But there's certainly enough room to have a little table to eat in.
0:03:25 > 0:03:29And, disappointingly, this lounge is on the small side.
0:03:29 > 0:03:30Could do with being bigger.
0:03:30 > 0:03:32But, there's a way you can get around that.
0:03:32 > 0:03:35I'm just wondering, if this wall isn't a supporting wall,
0:03:35 > 0:03:38it would be well worth knocking down,
0:03:38 > 0:03:41because then you could eat into all the lovely hallway space
0:03:41 > 0:03:43and really, really utilise that.
0:03:43 > 0:03:47Rumpled carpets. What does that mean?
0:03:47 > 0:03:50Somebody's obviously been having a little bit of investigating time.
0:03:50 > 0:03:53Let's have a look and see what's going on.
0:03:53 > 0:03:56Now, look. You can see one of the floorboards is cracked.
0:03:56 > 0:03:58It looks like signs of woodworm.
0:03:58 > 0:04:00I'd certainly get that checked out.
0:04:00 > 0:04:04And it's worth noting whether or not these floorboards are salvageable.
0:04:04 > 0:04:06But back to my original question -
0:04:06 > 0:04:08is there a back garden?
0:04:10 > 0:04:13Well, I'm pleased to say yes, there is.
0:04:13 > 0:04:18And look - a really pretty garden too. It's not terribly private,
0:04:18 > 0:04:20but it wasn't ever meant to be,
0:04:20 > 0:04:22because, originally, this was the front garden.
0:04:22 > 0:04:24You can see because the lane is along there
0:04:24 > 0:04:26and you'd walk up your pathway,
0:04:26 > 0:04:29but it's great to have any amount of outside space, and look -
0:04:29 > 0:04:32some really pretty little flowers over there too.
0:04:32 > 0:04:37# If I woke up in the morning and the world was back to front
0:04:37 > 0:04:42# There was sunshine in the evening and the moon came out for lunch... #
0:04:42 > 0:04:45Off-street parking and a pretty cottage garden -
0:04:45 > 0:04:47both good selling points.
0:04:47 > 0:04:48Things are looking up.
0:04:48 > 0:04:52And, er, talking of up, upstairs the two bedrooms
0:04:52 > 0:04:56are a pretty decent size and there's a family bathroom.
0:04:56 > 0:05:01All of it is looking tatty, tired and a little bit dated,
0:05:01 > 0:05:05but as we know, not all old features should be dismissed out of hand.
0:05:05 > 0:05:07This is the smaller bedroom of the two,
0:05:07 > 0:05:11but it's what's behind here that I'm really excited about.
0:05:11 > 0:05:13Ta-da-da! The big reveal.
0:05:13 > 0:05:14Oh!
0:05:14 > 0:05:16Now look at that.
0:05:16 > 0:05:19To pull back a piece of hardboard and see such a lovely,
0:05:19 > 0:05:22cute little fireplace like that.
0:05:22 > 0:05:27You know what - period features in any property make such a difference.
0:05:27 > 0:05:29That's a really nice surprise.
0:05:29 > 0:05:32So far, we have a bit of period character,
0:05:32 > 0:05:35a pretty garden and parking,
0:05:35 > 0:05:38but I think this house needs a lot of work -
0:05:38 > 0:05:41central heating, a total rewire,
0:05:41 > 0:05:43a new kitchen, bathroom, windows
0:05:43 > 0:05:47and that's before you think about knocking down walls and so on.
0:05:47 > 0:05:51I reckon you'd need to get it for something around the guide price
0:05:51 > 0:05:55of 75-80,000, because the work is going to cost a pretty penny.
0:05:55 > 0:05:56On the plus side,
0:05:56 > 0:06:01I really think this house has a lot of potential and I like it.
0:06:01 > 0:06:03Does the local estate agent agree with me?
0:06:05 > 0:06:08I think with this type of property, looking at its condition,
0:06:08 > 0:06:12it would be a case of modernising kitchens and bathrooms,
0:06:12 > 0:06:14making the most of the original features
0:06:14 > 0:06:17and bringing it back cosmetically.
0:06:17 > 0:06:19I wouldn't start doing any major works to it, because I think
0:06:19 > 0:06:24then you're over-capitalising on the type of property that it is.
0:06:24 > 0:06:28With that in mind, what would its potential resale value be?
0:06:28 > 0:06:30I think with renovation carried out,
0:06:30 > 0:06:33you're going to be looking at round about £120,000.
0:06:35 > 0:06:38Well, as I thought, if you were looking to resell,
0:06:38 > 0:06:41that valuation means you'd definitely need to get it
0:06:41 > 0:06:43for around the guide price of 75-80,000,
0:06:43 > 0:06:45because I reckon you'd not see much change
0:06:45 > 0:06:48out of 20,000 for the renovations.
0:06:50 > 0:06:52Would a rental see a better return?
0:06:52 > 0:06:55I think this property would rent out very easily
0:06:55 > 0:06:57and I think you're going to be looking at round about
0:06:57 > 0:06:59£600 per calendar month.
0:07:02 > 0:07:05Not a big money maker, but a lovely home a stone's throw
0:07:05 > 0:07:09from a beautiful beach in an affordable part of the world.
0:07:09 > 0:07:11Let's see who went for it at the auction.
0:07:13 > 0:07:17Lot 64 is the house for updating in a good location.
0:07:17 > 0:07:19Where do you want to start me? Start me at 70?
0:07:19 > 0:07:23£70,000 straight up. At 70, I'm on the way. And 2.
0:07:23 > 0:07:2472.
0:07:24 > 0:07:25And 4. 74.
0:07:25 > 0:07:27And 6 at the back. 76.
0:07:27 > 0:07:29And 80.
0:07:29 > 0:07:3080, and 2.
0:07:30 > 0:07:33- And 4...- This lot was in high demand
0:07:33 > 0:07:38and we rejoin the auction as bidding reached £113,000.
0:07:38 > 0:07:41113, and another fresh place. 114.
0:07:41 > 0:07:42And 15.
0:07:42 > 0:07:44And 16.
0:07:44 > 0:07:46116? 116 he has.
0:07:46 > 0:07:48And 17, it's against you.
0:07:48 > 0:07:49Keep with it. 117.
0:07:49 > 0:07:51118.
0:07:52 > 0:07:55At £117,000, make no mistake, it's going to be sold
0:07:55 > 0:07:56if you don't bid again.
0:07:56 > 0:07:59For the first time, then, at £117,000.
0:07:59 > 0:08:03If you're sure you're all done, third and final time at £117,000.
0:08:03 > 0:08:06It's yours, madam, at 117,
0:08:06 > 0:08:10- and that's F462... - The final bid of £117,000,
0:08:10 > 0:08:13£37,000 over the top end of the guide price,
0:08:13 > 0:08:15was placed by Michelle.
0:08:15 > 0:08:18# Michelle
0:08:18 > 0:08:19# Ma belle
0:08:19 > 0:08:24# These are words that go together well
0:08:24 > 0:08:26# Ma Michelle... #
0:08:26 > 0:08:29She's already had a lot of DIY expertise,
0:08:29 > 0:08:33having renovated her own houses, and now she's decided to try
0:08:33 > 0:08:36building a career in property development.
0:08:36 > 0:08:39I met her at what will be her second development project
0:08:39 > 0:08:40to find out more.
0:08:40 > 0:08:42Michelle, congratulations.
0:08:42 > 0:08:45You must be so pleased, because this is a lovely little cottage.
0:08:45 > 0:08:46Yes, thank you very much.
0:08:46 > 0:08:48I'm really looking forward to starting work on it.
0:08:48 > 0:08:51What took your eye? Why did you want to buy this?
0:08:51 > 0:08:52I just thought it was a very nice property.
0:08:52 > 0:08:55It wasn't your standard two up, two down.
0:08:55 > 0:08:58I saw lots of scope, lots of areas that would be interesting.
0:08:58 > 0:09:01OK, let's talk about how much you paid for it on auction day
0:09:01 > 0:09:02and what you think this house is worth.
0:09:02 > 0:09:05It went quite a way over the guide price, really.
0:09:05 > 0:09:07And were you prepared for that on auction day?
0:09:07 > 0:09:09Yes, two minutes before the bidding started,
0:09:09 > 0:09:11I wrote a very shaky top price on the image...
0:09:11 > 0:09:14- Which was?- 115.- OK!
0:09:14 > 0:09:18So I nearly stopped there and I think it was a lady
0:09:18 > 0:09:20that was bidding against me went up to 116
0:09:20 > 0:09:22and I thought, "Oh, it's only 2,000,"
0:09:22 > 0:09:24so I just went for it.
0:09:24 > 0:09:29I think the top value of it is 150-155,
0:09:29 > 0:09:32so it is quite tight in there,
0:09:32 > 0:09:36and if I discovered something pretty awful, we could run up to that limit.
0:09:36 > 0:09:38In which case I'd just keep it as a holiday home!
0:09:38 > 0:09:41No, no, no, that's not the idea of you doing this, is it?!
0:09:41 > 0:09:42I know, I know.
0:09:42 > 0:09:43So why are you doing this?
0:09:43 > 0:09:46Well, a bit of a...
0:09:46 > 0:09:48Bit of a career change, if you want to call it that,
0:09:48 > 0:09:51and I had two part-time jobs.
0:09:51 > 0:09:54The three-day-a-week job was not a fantastic payer,
0:09:54 > 0:09:59so I decided to give that up and go into property development
0:09:59 > 0:10:04by buying properties at auction, doing the work, which I really enjoy,
0:10:04 > 0:10:07and having my own business, effectively, plus, hopefully,
0:10:07 > 0:10:09making some money along the way.
0:10:09 > 0:10:14# I've made up my mind
0:10:14 > 0:10:18# It's time for a new beginning
0:10:18 > 0:10:20# A new beginning now... #
0:10:20 > 0:10:23'Michelle is hoping to make some money,
0:10:23 > 0:10:26'but she knows that even though it's a great house and a lovely location,
0:10:26 > 0:10:30'the margins could be tight after what she paid at auction.'
0:10:31 > 0:10:35The estate agent thought this could be worth 120,000 if done up
0:10:35 > 0:10:40and the average price around here is £137,000.
0:10:40 > 0:10:43So, what is she planning to do and most importantly,
0:10:43 > 0:10:45how much does she think she'll spend?
0:10:46 > 0:10:51I'm hoping to have about a £15,000 spend on it.
0:10:51 > 0:10:53It's going to be very tight.
0:10:53 > 0:10:55I'm seriously going to have to shop around.
0:10:55 > 0:10:58So where are you going to start spending the money?
0:10:58 > 0:11:00Well, there's things that have got to be done immediately.
0:11:00 > 0:11:03We have no central heating here, it needs a complete rewire.
0:11:03 > 0:11:05The roof is in serious need of attention.
0:11:05 > 0:11:09Let's talk about improvements, I mean, this is quite a small room.
0:11:09 > 0:11:12Is there anything in here you can do to make it better?
0:11:12 > 0:11:13Yes, absolutely.
0:11:13 > 0:11:15Because of the changearound and this now being
0:11:15 > 0:11:17the back of the house as opposed to the front,
0:11:17 > 0:11:20there's no need for the hall that exists at the moment
0:11:20 > 0:11:21or the front door,
0:11:21 > 0:11:27so this wall will be coming down to make this into a living-room diner.
0:11:27 > 0:11:30That will make such a huge difference to this room.
0:11:30 > 0:11:33- Yes, absolutely.- I'm just really worried about your £15,000 budget.
0:11:33 > 0:11:35I love your ideas, I think it's going to be super.
0:11:35 > 0:11:38I think you're going to fall in love with the place,
0:11:38 > 0:11:40- you might not want to sell it, but for £15,000...- Mm.
0:11:40 > 0:11:43..hopefully you've got a lot of friends in the trade
0:11:43 > 0:11:45and a lot of people that can help you out?
0:11:45 > 0:11:47I have, I have got a lot of help.
0:11:47 > 0:11:51It's just a case of getting down to it.
0:11:51 > 0:11:52There's areas that I have no choice,
0:11:52 > 0:11:55I have to have the professionals in to do it, there's no option,
0:11:55 > 0:11:59but the rest of it is down to me, me and my friends.
0:11:59 > 0:12:01- Are you excited? - Yes, I can't wait...
0:12:01 > 0:12:04Well, tomorrow, we will be starting, so I can't wait to get going.
0:12:04 > 0:12:07- How long do you think it's going to take you?- I hope three months.
0:12:07 > 0:12:10- Really?- Yes, that's right.
0:12:10 > 0:12:13- Michelle, good luck, it's been lovely meeting you. - Thank you very much.- Thanks.
0:12:14 > 0:12:19Mm, Michelle is right - the profit margin is tight,
0:12:19 > 0:12:22but it doesn't mean this won't be a great project for her
0:12:22 > 0:12:24to cut her teeth on,
0:12:24 > 0:12:26even if there aren't buckets of cash at the end.
0:12:26 > 0:12:30You can find out how it all goes later in the show.
0:12:33 > 0:12:38Today, I'm in Carlisle, hub city for Cumbria and the north of England.
0:12:38 > 0:12:41Famous for lots of things - the castle, the railway station,
0:12:41 > 0:12:45lots of connections with Romans, but it was also a really important
0:12:45 > 0:12:48manufacturing base for cotton, and Shaddon Mills here
0:12:48 > 0:12:51was one of the biggest mills, and that chimney,
0:12:51 > 0:12:57at 305 feet tall, was once the tallest in the world.
0:12:57 > 0:13:00# You can't make a living in a cotton mill... #
0:13:00 > 0:13:04This mill was built in 1836 and the luxury flats that
0:13:04 > 0:13:08it currently houses are a far cry from the factory floor
0:13:08 > 0:13:12that once saw 8,000 people employed in the cotton trade
0:13:12 > 0:13:15and all these people needed somewhere to live.
0:13:15 > 0:13:18Well, these properties would have been built to house the mill workers
0:13:18 > 0:13:21and it's obviously not a very long commute.
0:13:21 > 0:13:23Mostly two-up, two-down terraces,
0:13:23 > 0:13:27but in this case I am here to see a one-bedroomed property.
0:13:27 > 0:13:32The guide price was £20,000 to £25,000, which is really low.
0:13:32 > 0:13:34Let's find out why.
0:13:34 > 0:13:39- DOOR SQUEAKS - Oh, just a bit of post then!
0:13:39 > 0:13:41So, through the door, a little entrance area there.
0:13:41 > 0:13:42Somewhere to hang your coats -
0:13:42 > 0:13:44always good - and then into the front room.
0:13:44 > 0:13:47A slightly dated sort of fireplace area
0:13:47 > 0:13:51with a gas fire that'll obviously want to be checked out.
0:13:51 > 0:13:53We've obviously got some kind of central heating,
0:13:53 > 0:13:56which is good, and...
0:13:56 > 0:13:57Right, then.
0:13:58 > 0:14:00- That's it for the downstairs! - HE LAUGHS
0:14:00 > 0:14:02One up...one down, perhaps.
0:14:04 > 0:14:08Well, that's about the fastest tour of a downstairs I've ever done,
0:14:08 > 0:14:11but behind me is a good-sized front room.
0:14:11 > 0:14:13Lose the '70s brickwork fire feature
0:14:13 > 0:14:16and there's even more space to play with.
0:14:16 > 0:14:19If the double glazing and that porch do their job,
0:14:19 > 0:14:22the room should be well protected from street noise,
0:14:22 > 0:14:25the question is - where are the rest of the rooms?
0:14:25 > 0:14:29# I'm going to ask and you're going to tell... #
0:14:33 > 0:14:36- Right. - HE LAUGHS
0:14:36 > 0:14:40Upstairs you've got a very big landing and then, presumably,
0:14:40 > 0:14:43through here is...
0:14:43 > 0:14:44the bedroom.
0:14:47 > 0:14:48What's this?
0:14:51 > 0:14:53Where am I now, then? Cos this is...
0:14:53 > 0:14:55That's where that room downstairs ends
0:14:55 > 0:14:58and then you've got this bit here, which has got a loo
0:14:58 > 0:15:02and continuing on through here into...
0:15:03 > 0:15:05..the kitchen...
0:15:05 > 0:15:07I mean, it's all a bit shoddy, but more importantly than that,
0:15:07 > 0:15:10I feel like I've entered The Twilight Zone.
0:15:10 > 0:15:13TWILIGHT ZONE THEME PLAYS
0:15:13 > 0:15:16Clearly half of the downstairs is missing...
0:15:17 > 0:15:19..perhaps in another dimension.
0:15:21 > 0:15:24And speaking of dimensions, the layout is very awkward
0:15:24 > 0:15:26and you could say pokey.
0:15:26 > 0:15:30A good-sized bedroom at the front, plus a family bathroom
0:15:30 > 0:15:33and an ample kitchen, but rather a lot of room taken up
0:15:33 > 0:15:37by the landing and stairs, which feels a bit of a waste.
0:15:37 > 0:15:40There's also seemingly some attic space to consider.
0:15:40 > 0:15:42If the downstairs has been stolen,
0:15:42 > 0:15:46maybe there's a chance to pinch more space up top.
0:15:46 > 0:15:47I think I need to go outside
0:15:47 > 0:15:50and try to get my head around this one.
0:15:50 > 0:15:52Now, I've been walking around the rear of the property here
0:15:52 > 0:15:54for about five minutes,
0:15:54 > 0:15:57trying to see where the rear of the property is
0:15:57 > 0:15:59because this is a road which goes up the back.
0:15:59 > 0:16:01You can see the row of the terraces over there,
0:16:01 > 0:16:04but there's this construction - some commercial units,
0:16:04 > 0:16:07looks to me like a hairdressers there and all these other buildings,
0:16:07 > 0:16:10which means you can't actually see the back of our property,
0:16:10 > 0:16:13but over there somewhere there must be what's known as
0:16:13 > 0:16:16a flying freehold. Literally, our house extends over
0:16:16 > 0:16:19some of the rear of some of these buildings here.
0:16:19 > 0:16:22Well, OK, that brings up all sorts of issues.
0:16:22 > 0:16:24Who owns the rights to that flying freehold?
0:16:24 > 0:16:26Can you develop that flying freehold?
0:16:26 > 0:16:28Do you own the space above the flying freehold?
0:16:28 > 0:16:30It's something which may not be a problem,
0:16:30 > 0:16:34but something you definitely need to check...and check again.
0:16:34 > 0:16:37Hmmm, flying freeholds don't always mean trouble,
0:16:37 > 0:16:40but in this case, I'd be especially wary.
0:16:40 > 0:16:43If the commercial unit below were to lie empty
0:16:43 > 0:16:47and fall into disrepair, you could find yourselves
0:16:47 > 0:16:49hovering over a horror story.
0:16:52 > 0:16:55# Panic on the streets of Carlisle... #
0:16:55 > 0:16:58'Well, let's not panic JUST yet, a local property expert
0:16:58 > 0:17:02'has come to offer a cool eye over the prospects here.'
0:17:02 > 0:17:05My first impression of this property...
0:17:05 > 0:17:07It's quite unusual, it's a different layout.
0:17:07 > 0:17:10Certainly, it was probably one house at one time,
0:17:10 > 0:17:12now there's a commercial element downstairs,
0:17:12 > 0:17:14which isn't part of the property any more.
0:17:14 > 0:17:16So, it's over two levels, but it's big,
0:17:16 > 0:17:18it's spacious and it's got lots of potential.
0:17:18 > 0:17:22The only downside I can see to this property is the fact that there's only one bedroom.
0:17:22 > 0:17:24Your lounge is downstairs as well,
0:17:24 > 0:17:27so it kind of turns it into a bit of a maisonette, really.
0:17:27 > 0:17:30So with the right kind of planning and, you know, imagination,
0:17:30 > 0:17:32you might be able to rejig this property
0:17:32 > 0:17:35and perhaps even turn it into a two-bed.
0:17:35 > 0:17:36'That's an interesting option
0:17:36 > 0:17:40'and certainly one worth considering if you can find some space.
0:17:40 > 0:17:44'Would it be worth the effort? What does he think it would sell for?'
0:17:45 > 0:17:48As a resale value, once the property's been refurbished
0:17:48 > 0:17:53to a high standard, if it was left as a one-bed property,
0:17:53 > 0:17:56I would expect it to achieve between £50,000 and £55,000
0:17:56 > 0:18:00and if it was redone into a two-bed property, I should expect it
0:18:00 > 0:18:04to achieve probably between £70,000 and £75,000.
0:18:04 > 0:18:06'And how about rental values?'
0:18:06 > 0:18:09If this property came to the rental market as a one-bed house
0:18:09 > 0:18:11or maisonette,
0:18:11 > 0:18:14it should achieve £375 per calendar month approximately
0:18:14 > 0:18:16and as a two-bed,
0:18:16 > 0:18:21you should hopefully achieve around £425 per calendar month.
0:18:21 > 0:18:26Well, it's a quirky property that definitely needs some thinking about
0:18:26 > 0:18:30and some legal issues you certainly need to consider,
0:18:30 > 0:18:34but think about the guide price, the location and the potential...yeah.
0:18:34 > 0:18:36It's a good one, let's see who agreed
0:18:36 > 0:18:38when it went under the hammer.
0:18:40 > 0:18:43One-bedroomed terrace property with combi gas central heating,
0:18:43 > 0:18:46PVC double glazing... Who's here for this?
0:18:46 > 0:18:48Got to be 15 here, 15 at the back.
0:18:48 > 0:18:50At £15,000, stood.
0:18:50 > 0:18:54And one, 16. 17, 18, 19, 20.
0:18:54 > 0:18:5820 I've got. 21, 22, 23, 24.
0:18:58 > 0:19:02New position, 24, seated at the back. 25.
0:19:04 > 0:19:07Bit early for halves, give me 25, you might get it. 25.
0:19:07 > 0:19:1126. 26 I've got, 27.
0:19:11 > 0:19:1527 I have, 28. Half.
0:19:15 > 0:19:1728 and a half. 29.
0:19:19 > 0:19:21Half. 29 with you.
0:19:21 > 0:19:24First time... 29 the second time.
0:19:25 > 0:19:29At £29,000 then... Third and final time, all done, all out?
0:19:31 > 0:19:33Well done, sir, can I have your paddle number, please?
0:19:33 > 0:19:37'Sticking with it all the way to that successful £29,000 bid
0:19:37 > 0:19:38'was Keith.'
0:19:39 > 0:19:43'Now retired, Keith has a small rental portfolio
0:19:43 > 0:19:45'and this one was bought jointly with his son.
0:19:45 > 0:19:48'I met him at his new property to find out more.'
0:19:51 > 0:19:53- Keith, great to meet you. - Hello, Martin.
0:19:53 > 0:19:55Congratulations.
0:19:55 > 0:19:57Tell me why you wanted to buy the place?
0:19:57 > 0:20:02The price interested me at the start of it and so I came
0:20:02 > 0:20:05and I had a look, and I was intrigued with the possibilities.
0:20:05 > 0:20:08- INTRIGUED by the possibilities? - Absolutely, yeah.
0:20:08 > 0:20:10There was two options.
0:20:10 > 0:20:12One - it could be developed as it is,
0:20:12 > 0:20:16renovated, spruced up, getting rid of all of this sort of stuff
0:20:16 > 0:20:19and a new kitchen, bathroom, and so on...
0:20:19 > 0:20:22That's boring and I tend not to do boring, so, I thought,
0:20:22 > 0:20:24"Well, how can we...
0:20:24 > 0:20:27"First of all, how can we develop it as a two-bedroom?"
0:20:27 > 0:20:28Right.
0:20:28 > 0:20:32We'll shuffle things around upstairs so that what is now the kitchen
0:20:32 > 0:20:37at the back, at the extended flying freehold, will become a bedroom.
0:20:37 > 0:20:40- Ah. - This down here becomes a bedroom.
0:20:40 > 0:20:41Right.
0:20:41 > 0:20:46I'll turn the stairs 180 degrees round, leading straight up,
0:20:46 > 0:20:49that frees up the whole of the upstairs.
0:20:49 > 0:20:51It's all studding, so it will knock out
0:20:51 > 0:20:54and that will become an open-plan living area.
0:20:54 > 0:20:57There's plenty of windows, so there'd be plenty of light.
0:20:57 > 0:21:00Where the bathroom is now we'll put the kitchen,
0:21:00 > 0:21:02knock that wall out
0:21:02 > 0:21:06and it'll be completely open-plan with the stairs leading up.
0:21:06 > 0:21:09MARTIN LAUGHS
0:21:09 > 0:21:11Quite a plan, yes?
0:21:11 > 0:21:13Huh! Let's just run through that again!
0:21:13 > 0:21:16He's going to turn the stairs round...
0:21:16 > 0:21:19use the downstairs as a bedroom...
0:21:19 > 0:21:22open up the top floor and form a kitchen-diner...
0:21:24 > 0:21:27And he's going to make the old kitchen a second bedroom!
0:21:27 > 0:21:30Oof, I'm exhausted just thinking about it!
0:21:31 > 0:21:35Not a lot of people would think THAT through in the way you have.
0:21:35 > 0:21:39I've developed quite a number of properties.
0:21:39 > 0:21:43Myself and me wife have been enthusiastic self-builders
0:21:43 > 0:21:45- since the 1980s.- Right.
0:21:45 > 0:21:50We've now self-built our own house three times.
0:21:50 > 0:21:52Not the same house, you understand?
0:21:52 > 0:21:57Three different houses, which gave us something of an asset base
0:21:57 > 0:22:02and then when things collapsed in 2007-2008,
0:22:02 > 0:22:07there was a lot of fire sales around and so we took advantage
0:22:07 > 0:22:11and renovated them and rented them out.
0:22:11 > 0:22:13- This is now number nine.- Right.
0:22:15 > 0:22:17'Over the last four or five years,
0:22:17 > 0:22:20'Keith has focused on building up a rental portfolio,
0:22:20 > 0:22:22'but he feels this property
0:22:22 > 0:22:24'might be more suited to the resale market.
0:22:24 > 0:22:28'He plans to be on-site all the time and hopes to have the work done
0:22:28 > 0:22:34'in 10 to 12 weeks and on a budget of £10,000 to £12,000.'
0:22:35 > 0:22:37So who's going to do the work?
0:22:37 > 0:22:45I have a number of guys that I use for the heavyweight work.
0:22:45 > 0:22:50I am a qualified electrical engineer.
0:22:50 > 0:22:52And you will be monitoring it as it goes along, will you?
0:22:52 > 0:22:57- I'll be here every day, ten hours a day...- Right, wow.
0:22:57 > 0:22:58..I'll be here.
0:22:58 > 0:23:00- Listen, congratulations. - Thank you.
0:23:00 > 0:23:02Good luck and I'm looking forward to see how you get on.
0:23:02 > 0:23:05Right, thank you.
0:23:06 > 0:23:10Well, it's a quirky property that really needed someone
0:23:10 > 0:23:14with Keith's kind of imagination to make the most of it
0:23:14 > 0:23:17and I think he's come up with some really good ideas.
0:23:17 > 0:23:20How will he get on and what will it be like when it's done?
0:23:20 > 0:23:23You can find out later in the show.
0:23:23 > 0:23:28Coming up, you'll be amazed at how this house in Derby
0:23:28 > 0:23:31is transformed from black... to bright.
0:23:33 > 0:23:35Back in Cumbria,
0:23:35 > 0:23:39have Keith's complicated plans come crashing down?
0:23:39 > 0:23:41When we took it out... Actually it collapsed
0:23:41 > 0:23:43and it was the wall holding the roof up.
0:23:47 > 0:23:50But first, we return to Minnis Bay on the Kent coast
0:23:50 > 0:23:54and the nearby seaside village of Birchington-on-Sea.
0:23:56 > 0:23:59It was here we found a two-bedroom end of terrace house
0:23:59 > 0:24:03filled with hidden charm and character features.
0:24:03 > 0:24:06Dun-dun-dun-da! The big reveal! Oh!
0:24:06 > 0:24:10'But with an outdated kitchen, bathroom, decor,
0:24:10 > 0:24:14'no central heating and signs of woodworm in the floor,
0:24:14 > 0:24:16'it was going to need
0:24:16 > 0:24:19'a comprehensive renovation throughout.'
0:24:20 > 0:24:24'It was bought by Michelle for £117,000
0:24:24 > 0:24:27'as her second property development project.'
0:24:27 > 0:24:30- Why are you doing this? - Well, a bit of a...
0:24:30 > 0:24:33A bit of a career change, if you want to call it that
0:24:33 > 0:24:35and I had two part-time jobs
0:24:35 > 0:24:39and the three-day-a-week job was not a fantastic payer
0:24:39 > 0:24:44so I decided to give that up and go into property development
0:24:44 > 0:24:48by buying properties at auction, doing the work which I really,
0:24:48 > 0:24:51really enjoy and having my own business, effectively,
0:24:51 > 0:24:54plus hopefully making some money along the way!
0:24:54 > 0:24:57'Yes, making money. That was the bit that concerned me.
0:24:57 > 0:25:01'Michelle paid £37,000 over the top end of the guide price
0:25:01 > 0:25:07'and was hoping to complete a radical renovation for £15,000.'
0:25:08 > 0:25:12Armed with her DIY skills and help from a builder,
0:25:12 > 0:25:15she planned to transform this tired two-bed terrace
0:25:15 > 0:25:17into a lovely home in just three months.
0:25:19 > 0:25:23Five months later, we are back with Michelle to catch up
0:25:23 > 0:25:25on progress at her little house by the sea.
0:25:28 > 0:25:30Well, I do like what I see.
0:25:30 > 0:25:36Gravel drive, new double glazing, it's been reroofed,
0:25:36 > 0:25:38there's a proper porch area.
0:25:40 > 0:25:42That's more like it, Michelle!
0:25:42 > 0:25:46This is the living room and we did make a big change here.
0:25:46 > 0:25:48We took the old front door out
0:25:48 > 0:25:51and put a little window in there to let more light in.
0:25:51 > 0:25:56It has made it into a really nice, big living room and dining room.
0:25:56 > 0:25:58Plus we opened up the fireplace, which is open.
0:25:58 > 0:26:02It's ready either for a wood burner or an open fire.
0:26:02 > 0:26:05Where the old...the original sash window was, French doors have
0:26:05 > 0:26:08gone in but we've kept the height with the window at the top
0:26:08 > 0:26:10and as you can see, it is sunny today and it is a very,
0:26:10 > 0:26:12very nice, comfortable end room.
0:26:12 > 0:26:15Which, thanks to those French doors,
0:26:15 > 0:26:19leads directly out onto the newly fenced, tidied-up garden.
0:26:20 > 0:26:24And what about the other downstairs room, the kitchen?
0:26:27 > 0:26:30The kitchen, of course, needed completely replacing.
0:26:32 > 0:26:35It had a 1950s' kitchen in it. Everything was rotten.
0:26:35 > 0:26:39Everything had to go and we needed a new functional kitchen in here.
0:26:39 > 0:26:42I really wanted to keep the old fireplace here
0:26:42 > 0:26:45and we've managed to fit in a unit into the base
0:26:45 > 0:26:49and once it's tiled round I think that will look really, really nice.
0:26:49 > 0:26:52We took out the cupboards that were under the stairs here to make
0:26:52 > 0:26:55more space and more room.
0:26:55 > 0:26:59We all need storage, of course, so it made sense to do that as well.
0:27:02 > 0:27:06And with the downstairs cloakroom completely reinvigorated,
0:27:06 > 0:27:09Michelle's definitely maximised space downstairs.
0:27:11 > 0:27:13And upstairs?
0:27:18 > 0:27:20The two bedrooms are looking great
0:27:20 > 0:27:24and you can now see that period fireplace in all its glory.
0:27:27 > 0:27:29Gone are the old storage heaters,
0:27:29 > 0:27:32to be replaced by central heating throughout.
0:27:36 > 0:27:39The bathroom may be short of a tile or two
0:27:39 > 0:27:43but it's not far off from being finished so someone has been busy.
0:27:44 > 0:27:46I had a local builder
0:27:46 > 0:27:49that I came across whilst going to get fish and chips, actually.
0:27:49 > 0:27:52The house opposite had scaffold up and I asked them
0:27:52 > 0:27:56who the builder was so he and his team came in
0:27:56 > 0:27:59and did the major work, the roof and the driveway
0:27:59 > 0:28:02and some of the internal walls coming down as well.
0:28:02 > 0:28:06I had three days a week to work here, which I was very strict about.
0:28:06 > 0:28:08I had very, very long days here.
0:28:08 > 0:28:12Learned very quickly what I'm capable of and what I'm not capable of.
0:28:12 > 0:28:16I was definitely the builders' navvy for most of it.
0:28:16 > 0:28:21And there was a lot more navvying to be done than Michelle first thought.
0:28:21 > 0:28:24The timbers on the downstairs of the house needed replacing
0:28:24 > 0:28:27at the back of the house and the front of the house,
0:28:27 > 0:28:30mainly because there had been damp issues which had led to woodworm.
0:28:30 > 0:28:32It was one of those big jobs that needed doing.
0:28:32 > 0:28:35A lot of timber to come out but once the new timber had gone back in,
0:28:35 > 0:28:39fresh timber, and the woodworm had been treated, that was job done,
0:28:39 > 0:28:42new floors down and we moved on with the rest of the house.
0:28:42 > 0:28:44Now, I loved this house
0:28:44 > 0:28:47but I did think renovations here would not be cheap.
0:28:47 > 0:28:49Along with the flooring there was a new roof,
0:28:49 > 0:28:52chimney pots, guttering, a rewire, a replumb
0:28:52 > 0:28:57and I'm wondering how did Michelle's budget hold-up?
0:28:58 > 0:29:04My £15,000 original budget is probably the cosmetic budget
0:29:04 > 0:29:06and then there was the building budget that went on top,
0:29:06 > 0:29:08which practically doubled it.
0:29:08 > 0:29:12So really, I had a final budget of the purchase price and all
0:29:12 > 0:29:15of the building works and materials of £150,000 and that was it.
0:29:15 > 0:29:18I was not going to go above that at all.
0:29:19 > 0:29:23Well, I'm glad to see she set a limit on her spend.
0:29:23 > 0:29:27Even at £150,000 all in, she might be close to the ceiling price
0:29:27 > 0:29:29for this type of house in this area.
0:29:30 > 0:29:32What did two local estate agents think about
0:29:32 > 0:29:35what she has achieved here?
0:29:38 > 0:29:41The look of the property is in keeping with the cottage.
0:29:41 > 0:29:44They have really worked hard to maintain the details
0:29:44 > 0:29:48such as the cottage kitchen and the front of the property,
0:29:48 > 0:29:49with a gravelled front drive.
0:29:49 > 0:29:51I think it's a really nice job.
0:29:51 > 0:29:54It's done to a reasonable standard.
0:29:54 > 0:29:57I don't think there is a great deal more you could do
0:29:57 > 0:29:59to a cottage of this size and style.
0:29:59 > 0:30:03Yes, Michelle might have maximised the potential of the property
0:30:03 > 0:30:07but with a total investment of £150,000,
0:30:07 > 0:30:09has she breached the ceiling price for the house?
0:30:11 > 0:30:14I would recommend marketing this property at £140,000.
0:30:14 > 0:30:16I think, in the current climate,
0:30:16 > 0:30:21we would be looking to achieve between £145,000 and £150,000.
0:30:21 > 0:30:26Hm. It's very low. Very low. I was pretty disappointed.
0:30:28 > 0:30:31Oh. Originally Michelle had hoped to sell this on
0:30:31 > 0:30:36but it looks like plan B might be the order of the day here.
0:30:37 > 0:30:41I would rent this property for £625 per calendar month.
0:30:41 > 0:30:45Rental value on a property like this is between 590
0:30:45 > 0:30:48and £615 per calendar month.
0:30:48 > 0:30:50I know rents are very high at the moment
0:30:50 > 0:30:52so we will probably put it out for rental
0:30:52 > 0:30:55because I need to recoup some money to bring it back
0:30:55 > 0:30:57to what I actually spent
0:30:57 > 0:31:02and when we actually get to that level then it will go on the market.
0:31:02 > 0:31:07Even a monthly rental income of £590 per calendar month would see
0:31:07 > 0:31:11an annual yield just below 5% so that's not bad.
0:31:11 > 0:31:13But since we visited,
0:31:13 > 0:31:17Michelle has finished the house and put it on the market at £170,000.
0:31:18 > 0:31:22A great first step in her property developing career.
0:31:23 > 0:31:28It's been as if I went on a building course, doing absolutely everything.
0:31:28 > 0:31:32And I'm very much the wiser. Looking at it from that point of view,
0:31:32 > 0:31:38with what I've actually learnt, I feel as if I've gained massively.
0:31:38 > 0:31:41Perhaps not in pennies but certainly in experience
0:31:41 > 0:31:44and when this is eventually sold, we will move onto the next one.
0:31:49 > 0:31:53From a seaside getaway to a centre of industry.
0:31:53 > 0:31:55The car industry, to be precise.
0:31:55 > 0:31:58Here in Osmaston, about a mile and a half from Derby,
0:31:58 > 0:32:02the Rolls-Royce factory employed generations of families.
0:32:02 > 0:32:06Now there are regeneration plans for that iconic site
0:32:06 > 0:32:10while the car manufacturer itself has moved to a new premises nearby.
0:32:10 > 0:32:14An industrial town it may be but you wouldn't know it
0:32:14 > 0:32:17strolling here in the park known locally as Top Park.
0:32:17 > 0:32:22Well, it's lovely to have this park on your doorstep,
0:32:22 > 0:32:26especially when you are also quite close to Derby city centre.
0:32:26 > 0:32:29Maybe that's what tempted someone at the auction
0:32:29 > 0:32:32because the property I'm here to see is close by.
0:32:34 > 0:32:37It's just as well you have got the park nearby
0:32:37 > 0:32:41because as you can see, the property sits on a very busy main road.
0:32:41 > 0:32:47Still, the guide price was very attractive. £38,000 plus for this.
0:32:47 > 0:32:51A three-bedroom semidetached. That seems very low.
0:32:51 > 0:32:54Could it be just the location on this road that's the problem
0:32:54 > 0:32:55or is there more?
0:33:02 > 0:33:05You know the answer already, don't you?
0:33:05 > 0:33:07If something is too good to be true, it generally is.
0:33:11 > 0:33:14And in this case, this house has been, sadly,
0:33:14 > 0:33:16very badly fire-damaged.
0:33:16 > 0:33:18You walk through the front door and it is just...
0:33:18 > 0:33:20That is not the wallpaper, it is black.
0:33:20 > 0:33:22Everything is black, there is soot everywhere
0:33:22 > 0:33:25and it has actually been cleaned so you can imagine
0:33:25 > 0:33:28what sort of a state it was in before that happened.
0:33:28 > 0:33:30Let's try and look at the layout. It's nice.
0:33:30 > 0:33:32A big entrance area there.
0:33:32 > 0:33:35Stairs up to the bedrooms there, a nice sized front living room.
0:33:35 > 0:33:38These are nice properties when they are not like this.
0:33:38 > 0:33:40Kitchen at the back. That's already been stripped out.
0:33:40 > 0:33:45That was obviously damaged. All the ceilings. The door frames.
0:33:45 > 0:33:48This was obviously a very serious fire when it happened
0:33:48 > 0:33:51but again, it is a good sized space.
0:33:51 > 0:33:54Through to your rear living room area
0:33:54 > 0:33:59and most fires have a sort of epicentre, if you like, and I think,
0:33:59 > 0:34:01judging by the state in here, this is it.
0:34:01 > 0:34:06A lot more damage and in fact, not only the floor... Oh, my word!
0:34:06 > 0:34:11Not only the floorboards been very badly damaged, there,
0:34:11 > 0:34:14but look up there at those joists.
0:34:14 > 0:34:16That's the issue with fire damage.
0:34:16 > 0:34:21It can be superficial but it can be quite seriously structural.
0:34:21 > 0:34:25The walls can even buckle and until you start ripping things off
0:34:25 > 0:34:29and getting rid of what's here, you're not really going to know.
0:34:29 > 0:34:32It's sad to think this was once someone's pride and joy.
0:34:32 > 0:34:35Let's hope someone can transform it back into a home
0:34:35 > 0:34:37but it's not going to be easy.
0:34:39 > 0:34:41I recommend getting in a specialist
0:34:41 > 0:34:43with knowledge of fire-damaged properties.
0:34:43 > 0:34:45I don't think you can underestimate the problems
0:34:45 > 0:34:48that might be hiding here.
0:34:48 > 0:34:50Sometimes with fire-damaged properties,
0:34:50 > 0:34:52the damage is limited to one room.
0:34:52 > 0:34:55That often happens with chip pan fires,
0:34:55 > 0:34:58as long as they are caught quickly, it's just the kitchen that's damaged
0:34:58 > 0:35:00and the rest of it is smoke damage.
0:35:00 > 0:35:02In this house you get the impression that
0:35:02 > 0:35:05it's a bit of a miracle that it's still standing at all.
0:35:05 > 0:35:09For instance, come into the bathroom here and look at this.
0:35:09 > 0:35:13Wow! The fact it is a white suite probably makes it more pronounced,
0:35:13 > 0:35:17and white tiles, but that is extraordinary.
0:35:17 > 0:35:19As we said before, it's not only what you can see,
0:35:19 > 0:35:21it's what you can't see.
0:35:21 > 0:35:24For instance, in here, one of the bedrooms...
0:35:24 > 0:35:26And there are three bedrooms that are a good size.
0:35:26 > 0:35:28You can't criticise the layout of the house.
0:35:28 > 0:35:30But in this bedroom here,
0:35:30 > 0:35:33in that corner, that's above the worst of the damage downstairs
0:35:33 > 0:35:36and from here you can think that's fine,
0:35:36 > 0:35:40but I bet if I put my weight on it - and I won't - I would go through.
0:35:40 > 0:35:43So again, it comes back
0:35:43 > 0:35:46to not really being sure how bad things are.
0:35:46 > 0:35:49So it's not a project for the unwary.
0:35:52 > 0:35:55It's not just the fabric of the building
0:35:55 > 0:35:59like the lath and plaster, you do have to think about the utilities
0:35:59 > 0:36:02and how the wiring and plumbing have been affected.
0:36:02 > 0:36:05I'm hoping the outside at least might be unscathed.
0:36:06 > 0:36:08Well, the rear of the property,
0:36:08 > 0:36:10the good news is there is a half decent sized garden
0:36:10 > 0:36:13but you can't get to it because this huge great pile of rubbish,
0:36:13 > 0:36:15which is a shame
0:36:15 > 0:36:17because I would like to go down there so I could take a look
0:36:17 > 0:36:21at the roof and see if that has been damaged by the fire.
0:36:21 > 0:36:23Really, with this kind of property,
0:36:23 > 0:36:25unless you absolutely know what you're doing,
0:36:25 > 0:36:29you do need to employ the services of a proper structural engineer
0:36:29 > 0:36:33who can give you a report on its condition.
0:36:33 > 0:36:36So this house, with a guide price of £38,000,
0:36:36 > 0:36:39does come loaded with issues and problems.
0:36:43 > 0:36:46We asked the agent who sold it what he thought of it.
0:36:51 > 0:36:54You know, the more I look at this house in its present condition,
0:36:54 > 0:36:57the more I think you are dealing with just a shell of a property.
0:36:57 > 0:37:00I think it's a wholesale renovation project.
0:37:00 > 0:37:03I don't think there is anything, really,
0:37:03 > 0:37:05you can salvage from what is here.
0:37:05 > 0:37:07And that would mean having to factor in
0:37:07 > 0:37:09a considerable refurbishment budget.
0:37:09 > 0:37:14Even if you got it for anything like that guide price of £38,000,
0:37:14 > 0:37:18the question is could you ever get your money back?
0:37:18 > 0:37:20Whatever, ultimately, is spent on it,
0:37:20 > 0:37:22let's just assume it has been brought up to a good standard,
0:37:22 > 0:37:25on today's market, it is highly unlikely
0:37:25 > 0:37:29to have a value of more than 85,000 to £90,000.
0:37:31 > 0:37:35Rental value, about £525 a calendar month.
0:37:37 > 0:37:42Well, every property has a value, no matter what state it's in
0:37:42 > 0:37:44and that's certainly the case here.
0:37:44 > 0:37:46If you can get this at the right price,
0:37:46 > 0:37:48there would still be money to be made
0:37:48 > 0:37:51but a lot of people, I'm sure, would have been put off
0:37:51 > 0:37:54by their first reactions.
0:37:54 > 0:37:57Let's see who wasn't when it went under the hammer.
0:38:00 > 0:38:03Lot number three, 38 on the guide price.
0:38:03 > 0:38:0638 is bid on the telephone, thank you.
0:38:06 > 0:38:09At £38,000. 39? 39 is bid.
0:38:09 > 0:38:1440,000? 41, 42, 43,
0:38:14 > 0:38:1744, 45, 46...
0:38:17 > 0:38:22'This problem property was certainly attracting a lot of interest
0:38:22 > 0:38:27'and we rejoin the auction as bidding reaches £59,000.'
0:38:27 > 0:38:30At 59,000... 500?
0:38:30 > 0:38:3359,500. 60, Sir? 60,000.
0:38:33 > 0:38:37500, again? 60,500. 61?
0:38:37 > 0:38:3961.
0:38:39 > 0:38:41500? 61,500.
0:38:41 > 0:38:4562, sir? Now or not?
0:38:45 > 0:38:4862,000, once, twice, third opportunity.
0:38:48 > 0:38:49GAVEL FALLS
0:38:49 > 0:38:52Sold to the lady, 62,000, thank you.
0:38:52 > 0:38:53Sorry 61,500.
0:38:53 > 0:38:56'The auctioneer's not the only one to be confused.
0:38:56 > 0:39:00'Although it looks like the 61,500 bid was made by Beebee,
0:39:00 > 0:39:03'she was actually being prompted by her son, Taj,
0:39:03 > 0:39:05'who was hidden from view.
0:39:08 > 0:39:11'And it was construction student, Taj, here on the right,
0:39:11 > 0:39:15'who met us at the property with his friend, Hassan,
0:39:15 > 0:39:17'who is a quantity surveyor.'
0:39:19 > 0:39:23- Hassan, Taj, good to meet you both. - You too.- Congratulations.
0:39:23 > 0:39:26- Thank you very much.- Right, how are you with a paintbrush?
0:39:26 > 0:39:29- Not very good. - Not very good, to be honest.
0:39:29 > 0:39:31Tell me why you wanted to buy this place.
0:39:31 > 0:39:35- To be honest, the reason we bought it was because of how badly damaged it was.- Right.
0:39:35 > 0:39:37The fact that it was so damaged,
0:39:37 > 0:39:40we thought, "Yeah, it will be a project for us."
0:39:40 > 0:39:42We could learn in the future, as well.
0:39:42 > 0:39:44We thought we'd get it cheap, as well.
0:39:44 > 0:39:47The more damage the property has got, we'd pay a cheap price.
0:39:47 > 0:39:50That's one of the reasons why we purchased it.
0:39:50 > 0:39:53'Well, I wouldn't exactly say this was cheap.
0:39:53 > 0:39:56'He ended paying £23,500 over the guide price.
0:39:56 > 0:39:59'So why did he pay so much?'
0:40:01 > 0:40:03The auction is very nervous because
0:40:03 > 0:40:06I, initially, wanted to go 10,000 below
0:40:06 > 0:40:08and then when it came down to it,
0:40:08 > 0:40:11I got excited and started bidding even more and more and more.
0:40:11 > 0:40:15At that point I didn't use my head. I thought, you know, I just want it.
0:40:15 > 0:40:17You got auction fever.
0:40:17 > 0:40:19- Basically, yeah.- I just wanted it.
0:40:19 > 0:40:23- I got worried.- After I thought, "Did I get the right price, or not?"
0:40:23 > 0:40:25Then I factored in all the prices and thought,
0:40:25 > 0:40:26"Yeah, it should be all right."
0:40:26 > 0:40:30'Oh, dear, I do hope Taj is right about the numbers.
0:40:30 > 0:40:32'We've seen people go too far in auctions before
0:40:32 > 0:40:35'and this is a classic way of getting into trouble.
0:40:35 > 0:40:41'This is his first project and Taj has paid £61,500 for this house.
0:40:41 > 0:40:46'The top price the agents thought he could make on resale is £90,000.
0:40:46 > 0:40:48'Given the state of this house,
0:40:48 > 0:40:51'and the need for specialist expertise, I'm worried.
0:40:51 > 0:40:53'He has at least got Hassan to advise him
0:40:53 > 0:40:56'and he knows a builder who will carry out the work
0:40:56 > 0:40:59'but they haven't actually finalised those all-important costings.'
0:41:01 > 0:41:03So did he give you a ballpark what it's going to cost?
0:41:03 > 0:41:05He was saying around the 15,000 mark.
0:41:05 > 0:41:08- 10 to 15,000 we're talking here. - To do what?
0:41:08 > 0:41:11Brand-new gas central heating system, rewiring as well.
0:41:11 > 0:41:15Partially plastered, especially the main room where it caught fire,
0:41:15 > 0:41:18and the majority of the house skimming
0:41:18 > 0:41:20but, ultimately, before we can even do that
0:41:20 > 0:41:22there is no gas meter, or electric meter.
0:41:22 > 0:41:24We do not know how long that's going to take.
0:41:24 > 0:41:27The reason why we're saying that much only because...
0:41:27 > 0:41:30What do you mean "that much"? What about "that little"?
0:41:30 > 0:41:32That little.
0:41:32 > 0:41:34If you'd paid a builder, that you didn't know,
0:41:34 > 0:41:36they would definitely go in the 20 to 25 range.
0:41:36 > 0:41:40- We've got our own builders. - The builders are our friends...
0:41:40 > 0:41:42You know, we help each other out.
0:41:42 > 0:41:44- Mates rates?- Exactly. - Absolutely, yes.
0:41:44 > 0:41:47That's the reason why we went further into it.
0:41:47 > 0:41:49If we had not had our business,
0:41:49 > 0:41:51I would have backed out a long time ago.
0:41:51 > 0:41:53I wouldn't even have considered it.
0:41:53 > 0:41:55- Congratulations, a few challenges ahead.- Absolutely.
0:41:55 > 0:41:59- But well done, you. We look forward to seeing how you get on.- Thank you very much.
0:41:59 > 0:42:02- Good to see you.- You too.
0:42:04 > 0:42:08Well, for anybody this would be one heck of a challenge
0:42:08 > 0:42:14and, despite his enthusiasm, I wonder if Taj is maybe wondering
0:42:14 > 0:42:18whether he's taken on a little bit too much here.
0:42:18 > 0:42:22Even with the help of Hassan, mates rates and friends,
0:42:22 > 0:42:26I still worry that £10-£15,000 budget ain't going to be enough.
0:42:26 > 0:42:30You can find out how he gets on later in the show.
0:42:33 > 0:42:35Well, the moment of reckoning has arrived.
0:42:35 > 0:42:39Have those property gambles paid off or have our buyers backed the wrong horse?
0:42:39 > 0:42:41Let's go back and find out.
0:42:46 > 0:42:49'It was in the Cumbrian city of Carlisle
0:42:49 > 0:42:53'where we first saw a rather intriguing one bedroomed terraced house.
0:42:53 > 0:42:56'On the outside it looked no different from any other property in the street
0:42:56 > 0:43:00'but step over the threshold and you were greeted
0:43:00 > 0:43:03'with just a single downstairs room.
0:43:03 > 0:43:06'Whereas, upstairs was twice the width and had a bathroom,
0:43:06 > 0:43:09'kitchen and bedroom.
0:43:09 > 0:43:11'Mm, yes, this was a case of a flying freehold
0:43:11 > 0:43:13'where half the downstairs space
0:43:13 > 0:43:16'was owned by a commercial property next door,
0:43:16 > 0:43:20'leaving half the second floor floating in freehold space.
0:43:23 > 0:43:26'Even so, this upside down "L" of a place
0:43:26 > 0:43:29'was bought for £29,000 as a joint venture
0:43:29 > 0:43:32'between former science teacher, Keith, and his son, Alex.
0:43:32 > 0:43:36'With several properties under his belt,
0:43:36 > 0:43:38'it was down to Keith to organise the work
0:43:38 > 0:43:40'and project manage the renovation
0:43:40 > 0:43:42'and Keith was a man with a plan.
0:43:44 > 0:43:48We'll shuffle things around upstairs so that what is now the kitchen
0:43:48 > 0:43:51at the back of the extended flying freehold
0:43:51 > 0:43:54- will become a bedroom.- Oh...
0:43:54 > 0:43:56- This down here becomes a bedroom. - Right.
0:43:56 > 0:44:00I'll turn the stairs 180 degrees around,
0:44:00 > 0:44:02leading straight up.
0:44:02 > 0:44:06That frees up the whole of the upstairs where the bathroom is now.
0:44:06 > 0:44:10We'll put the kitchen, knock that wall out
0:44:10 > 0:44:14and it'll be completely open plan with the stairs leading up.
0:44:16 > 0:44:18Quite a plan, yes?
0:44:19 > 0:44:21'Yeah, quite a plan!
0:44:21 > 0:44:24'And Keith hoped he'd complete his mission to totally reform this
0:44:24 > 0:44:28'into a two bedroomed open plan swish pad
0:44:28 > 0:44:32'for just 10 to 12,000 and in a timescale of just ten weeks.
0:44:36 > 0:44:38'Well, now 12 weeks later, we're back with Keith
0:44:38 > 0:44:41'to see if he's realised his plans.
0:44:48 > 0:44:51'Well, the outside's looking smart.
0:44:51 > 0:44:53'New double glazing and reroofed.
0:44:55 > 0:44:58'Inside...
0:44:58 > 0:45:00'Yep, the downstairs living room is a bedroom
0:45:00 > 0:45:03'and not only that it's en suite, to boot.
0:45:08 > 0:45:12'But what will we find climbing up the newly positioned stairs?
0:45:24 > 0:45:28'Yes, it looks like Keith's got that open plan living he was hoping for.
0:45:29 > 0:45:33'Although it's not completely finished, it's well on its way.
0:45:37 > 0:45:41'And with the kitchen turned into the second bedroom,
0:45:41 > 0:45:44'he's made amazing use of the space.
0:45:49 > 0:45:50'And that's not all,
0:45:50 > 0:45:54look what he's done in the loft space.
0:46:03 > 0:46:06'Oh, I do like it when a plan comes together.'
0:46:07 > 0:46:10There was one little wrinkle that I came across
0:46:10 > 0:46:15and it was that when you have these odd stairs
0:46:15 > 0:46:18that you see behind, what's called alternate stairs
0:46:18 > 0:46:20where you step alternately,
0:46:20 > 0:46:22if that leads up to a toilet
0:46:22 > 0:46:27then the building regs say that that must not be the only toilet in the property.
0:46:27 > 0:46:32That really then meant I had to put an en suite downstairs.
0:46:32 > 0:46:35We've done that, I've then been able to put a small laundry room
0:46:35 > 0:46:40downstairs so that was the one thing that changed, really.
0:46:40 > 0:46:43'So not only did he solve the toilet dilemma,
0:46:43 > 0:46:45'he found a way of turning it into a plus
0:46:45 > 0:46:48'but one thing Keith couldn't do anything about
0:46:48 > 0:46:50was the flying freehold which wasn't described properly
0:46:50 > 0:46:52on the title deeds and had to be resolved
0:46:52 > 0:46:55before the sale of the house went through,
0:46:55 > 0:46:59which delayed Keith's start time by nearly a month.
0:47:01 > 0:47:03It's taken two months to do this.
0:47:03 > 0:47:07That's been two months of seven days a week,
0:47:07 > 0:47:1010-12 hours a day,
0:47:10 > 0:47:13with myself and a great team of guys that I've got to mention -
0:47:13 > 0:47:16Al, Dan, Mike, Stewie and Tom.
0:47:16 > 0:47:18We wouldn't have been able to make this work without them.
0:47:18 > 0:47:20Thanks to them.
0:47:20 > 0:47:24Two months to do all these changes is pretty impressive,
0:47:24 > 0:47:26but it wasn't without the odd hitch or two.
0:47:28 > 0:47:32We had some interesting times, because this here behind me
0:47:32 > 0:47:34was a structural wall.
0:47:34 > 0:47:38We had to remove that and put a three-metre steel beam in.
0:47:38 > 0:47:41The day we did that, the wall above it,
0:47:41 > 0:47:43when we took it out, actually collapsed.
0:47:43 > 0:47:47It was the wall holding the roof up, so that was an interesting morning.
0:47:47 > 0:47:48Ooh.
0:47:48 > 0:47:51Luckily Keith was already planning to reroof the house,
0:47:51 > 0:47:53so apart from creating a lot of mess,
0:47:53 > 0:47:57this slight mishap didn't lead to any additional expenses.
0:47:57 > 0:48:00But with all the changes, did he really keep to his budget?
0:48:03 > 0:48:07We were initially going to spend 10-12.
0:48:07 > 0:48:09It's come in at 21.
0:48:09 > 0:48:13Keith made a calculated decision to spend £21,000 on the house,
0:48:13 > 0:48:17but having originally bought it with son Alex for 29,000,
0:48:17 > 0:48:22has a total spend of £50,000 plus taxes and fees been value for money?
0:48:24 > 0:48:28What do two local estate agents make of this now two-bed property?
0:48:29 > 0:48:31It's been a very clever conversion.
0:48:31 > 0:48:35The open-plan aspect of the property's a really good idea.
0:48:35 > 0:48:40Of course, in creating the bathroom space up in the loft area,
0:48:40 > 0:48:45as it were, actually gives it that nice loft feel to the property.
0:48:45 > 0:48:46It's all good.
0:48:46 > 0:48:50My first impression of the property is it's nice and light throughout.
0:48:50 > 0:48:53It's modern - lovely modern kitchen been put in.
0:48:53 > 0:48:57Also, the bathroom and the toilet downstairs,
0:48:57 > 0:49:00which is good with the second bedroom as well.
0:49:00 > 0:49:03Keith and his son are keen to sell this one on,
0:49:03 > 0:49:08so what might they get for the house they've invested £50,000 in?
0:49:08 > 0:49:12My advice would be to put it on at an asking price of £70,000.
0:49:12 > 0:49:17I think the resale value of this property will be £65,000.
0:49:17 > 0:49:21That's about what I expected. Yes, I would have...
0:49:21 > 0:49:24I like the sound of the 70,000 one, obviously.
0:49:24 > 0:49:30Yes, £70,000 would see a nice pre-tax profit of £20,000.
0:49:30 > 0:49:34The agents also thought rental values in the order
0:49:34 > 0:49:38of £400-450 per calendar month should be possible,
0:49:38 > 0:49:43which would generate a healthy annual yield above 9%.
0:49:43 > 0:49:45so what does Keith plan to do next?
0:49:46 > 0:49:48To sell this, obviously.
0:49:48 > 0:49:51We already have the next project lined up,
0:49:51 > 0:49:54so we can't rest on our laurels.
0:49:54 > 0:49:58We've got to move on to the next project. Onward and upward.
0:50:01 > 0:50:04And there wasn't going to be any resting on laurels or
0:50:04 > 0:50:07otherwise here in Derby, where we first saw a three-bed semi.
0:50:11 > 0:50:13From the outside, it looked OK.
0:50:14 > 0:50:17But inside, there were clear signs as to why this was
0:50:17 > 0:50:20guided at £38,000 plus.
0:50:29 > 0:50:32Yes, this property was badly fire damaged,
0:50:32 > 0:50:35but how badly was quite hard to tell,
0:50:35 > 0:50:37with layers of black soot covering everywhere.
0:50:40 > 0:50:43It was bought by Taj, seen here on the right,
0:50:43 > 0:50:47a university student studying property construction.
0:50:47 > 0:50:49As this was his first development project,
0:50:49 > 0:50:54he had sensibly roped in his friend Hassan, who is a quantity surveyor.
0:50:55 > 0:50:59Perhaps less sensibly, Taj hadn't seen inside the house,
0:50:59 > 0:51:02and so got a little carried away on auction day.
0:51:04 > 0:51:09The auction is really nervous, cos I initially wanted to go 10,000 below.
0:51:09 > 0:51:11Then when it came down to it,
0:51:11 > 0:51:14I got excited and started bidding even more and more and more.
0:51:14 > 0:51:18At that point, I didn't use my head. I just wanted it.
0:51:18 > 0:51:20You got auction fever, we call it.
0:51:20 > 0:51:23MUSIC: "Fever" by Peggy Lee
0:51:23 > 0:51:28And that auction fever meant he went £23,500 over the guide price,
0:51:28 > 0:51:33and paid £61,500 for the fire damaged house.
0:51:33 > 0:51:36But he hoped he could renovate the house on a budget of just
0:51:36 > 0:51:39£15,000 and a three-month timescale.
0:51:42 > 0:51:45Now, bang on three months later, we're back with Taj to see
0:51:45 > 0:51:48if he's brought this house back to life.
0:51:49 > 0:51:51MUSIC: "Phoenix From The Flames" by Robbie Williams
0:51:58 > 0:52:01That's more like it. This house certainly lives again.
0:52:08 > 0:52:11There's a new soot-free kitchen and front lounge.
0:52:11 > 0:52:14But what about the room that was the source of the fire?
0:52:24 > 0:52:28When we came three months ago, all this was black. The ceiling was...
0:52:28 > 0:52:33The joists were sinking down, they were black and they were burnt.
0:52:33 > 0:52:36We had the impression that the fire had gone elsewhere
0:52:36 > 0:52:39and damaged the rest of the joists.
0:52:39 > 0:52:41We thought we had to do a lot of work.
0:52:41 > 0:52:43We actually got really lucky at the end,
0:52:43 > 0:52:46cos we only had to change the joists.
0:52:46 > 0:52:50It didn't affect the walls, it didn't affect anywhere else structurally,
0:52:50 > 0:52:55so all we had to do was change the joists, plaster it and paint it.
0:52:56 > 0:53:00Taj also got certificates for all the plumbing and electrical work,
0:53:00 > 0:53:04and was advised on the structural changes by his friend Hassan,
0:53:04 > 0:53:06who is a qualified quantity surveyor.
0:53:08 > 0:53:09In a case like this,
0:53:09 > 0:53:13I'd always recommend you seek professional help and advice.
0:53:15 > 0:53:18Assessing fire damage is definitely one for the experts.
0:53:18 > 0:53:19In this house,
0:53:19 > 0:53:23once Taj and his team were happy the house was structurally sound,
0:53:23 > 0:53:26it was full steam ahead with the renovation -
0:53:26 > 0:53:28with new electrics, plumbing, plasterwork
0:53:28 > 0:53:32and a cosmetic refurb from bottom to top of the three-bed house.
0:53:50 > 0:53:54Remember the state of that bathroom? Well, just look at it now.
0:53:56 > 0:53:59Taj used tradesmen where necessary,
0:53:59 > 0:54:02but most of the work was done by friends and family.
0:54:02 > 0:54:04While they concentrated on the inside,
0:54:04 > 0:54:06it was down to Taj to tackle the garden.
0:54:09 > 0:54:11A lot of my time went on this actual project
0:54:11 > 0:54:13of getting this garden cleaned up.
0:54:13 > 0:54:18I'd say around about two weeks of nonstop taking all the rubbish out.
0:54:18 > 0:54:22We had to use shovels, we had to use a gardening machine.
0:54:22 > 0:54:25I would say most of my time actually went into that, yeah.
0:54:26 > 0:54:29Well, I wouldn't say the garden's quite the finished article,
0:54:29 > 0:54:30but it's greatly improved.
0:54:30 > 0:54:34While Taj laboured inside and out, how much help was Hassan?
0:54:37 > 0:54:42I relied on Hassan mainly on the main work, like the plastering.
0:54:42 > 0:54:46Although it cost me way less to change the joist support,
0:54:46 > 0:54:49that's because only Hassan gave me the thumbs up.
0:54:49 > 0:54:52Without him, I would have ended up spending £1,000 not knowing.
0:54:52 > 0:54:55I was just OK-ing things with him.
0:54:55 > 0:54:56He did play a major part in it.
0:54:57 > 0:55:01So Hassan mentored Taj through his first development.
0:55:01 > 0:55:04With university studies and doing up the house,
0:55:04 > 0:55:07I'm sure he appreciated any help he could get.
0:55:07 > 0:55:10Having paid slightly over the odds to buy the house,
0:55:10 > 0:55:15it was imperative that he stuck to his proposed £15,000 budget.
0:55:15 > 0:55:17Because we got our friends and family involved,
0:55:17 > 0:55:20it was more of a subsidised cost.
0:55:20 > 0:55:21They did the work for me,
0:55:21 > 0:55:25so I in return, in the future, will do something for them.
0:55:25 > 0:55:29They still got paid, but it was just a lot cheaper.
0:55:29 > 0:55:32Because of that, it cost us 13,500.
0:55:32 > 0:55:37A £13,500 spend on top of his £61,500 purchase price
0:55:37 > 0:55:42takes his total cost to £75,000 before taxes and fees,
0:55:42 > 0:55:46but using family and friends to do the finishing off work
0:55:46 > 0:55:49to save money doesn't always pay dividends.
0:55:49 > 0:55:51What do two local estate agents think?
0:55:52 > 0:55:55My overall view of the renovation programme,
0:55:55 > 0:55:57the makeover on this property is that
0:55:57 > 0:56:00it's probably the most economic make over I've ever seen.
0:56:00 > 0:56:04I think it's been done on a very tight budget,
0:56:04 > 0:56:08which perhaps makes sense for this type of property in the market
0:56:08 > 0:56:09that it's going to go into.
0:56:09 > 0:56:12First impressions of the property would be a little shabby.
0:56:12 > 0:56:14I think it would have to go to the rental market,
0:56:14 > 0:56:18because the finish isn't really good enough for the sales market.
0:56:18 > 0:56:21That would detract from the value quite considerably.
0:56:21 > 0:56:25Ah. Well, when it comes to getting a really good, slick finish
0:56:25 > 0:56:29on a property, it's often worth getting it done professionally.
0:56:29 > 0:56:34So in this case with all Taj's hard work, as it stands,
0:56:34 > 0:56:38unless he accepts a lower price, rental might be the only option.
0:56:38 > 0:56:41So what kind of rental values could it achieve?
0:56:43 > 0:56:47I think this property would let overnight at £495 per calendar month.
0:56:47 > 0:56:49If this property was put on the rental market,
0:56:49 > 0:56:52we'd be looking at £450 per calendar month.
0:56:52 > 0:56:53That's not bad.
0:56:53 > 0:56:58£450 per calendar month would generate a 7% annual yield,
0:56:58 > 0:56:59so that would be OK.
0:56:59 > 0:57:03But what does Taj think about those rental figures?
0:57:03 > 0:57:06I don't think we'll be renting it, because we can get
0:57:06 > 0:57:09the money from the profit and we can just move on to the next project.
0:57:09 > 0:57:13If we put it on rent, it's a more slow process.
0:57:14 > 0:57:17Yes, but unless he does some additional work
0:57:17 > 0:57:20on the finish of the house, in the current resale market,
0:57:20 > 0:57:24his £75,000 investment is unlikely to sell.
0:57:24 > 0:57:26If he could find a buyer, at best,
0:57:26 > 0:57:29one of the agents thought he might break even.
0:57:29 > 0:57:33So where does that leave Taj and his property developing career?
0:57:35 > 0:57:38This won't be a full-time career, if you know what I mean.
0:57:38 > 0:57:43I've only got X amount of money. I wouldn't be able to do it full-time.
0:57:43 > 0:57:45This would definitely be a part-time career.
0:57:48 > 0:57:51Well, whether you're a seasoned property professional
0:57:51 > 0:57:52or a complete novice,
0:57:52 > 0:57:55join us next time for more stories from the auctions.
0:57:55 > 0:57:57Yes, make sure you tune into Homes Under The Hammer.
0:57:57 > 0:57:59- Goodbye for now.- Goodbye.