0:00:02 > 0:00:05- Hello. Welcome to the show.- We all know that the value of properties
0:00:05 > 0:00:06can go down as well as up.
0:00:06 > 0:00:09So it pays to buy at the right price in the first place.
0:00:09 > 0:00:12And one way you can do that is to buy your home under the hammer.
0:00:38 > 0:00:40If you're sitting at home thinking,
0:00:40 > 0:00:42is now the right time to buy property?
0:00:42 > 0:00:45The thing is, you'll never be quite sure.
0:00:45 > 0:00:47So sometimes, you've just got to go for it.
0:00:47 > 0:00:50On today's show, three bidders have already put their money on the line.
0:00:50 > 0:00:52Here's what they bought.
0:00:54 > 0:00:58This fabulous Folkestone flat finds a buyer who is willing to risk all.
0:01:00 > 0:01:02It was a dangerous decision.
0:01:04 > 0:01:06The question in Edmonton, London is,
0:01:06 > 0:01:12can a paramedic use his skills to resuscitate this tired two-bed terrace?
0:01:13 > 0:01:15In Willaston, Cheshire,
0:01:15 > 0:01:19a first-time buyer has a very demanding renovation schedule.
0:01:19 > 0:01:23- What is the sort of timescale for this?- I would like it done tomorrow.
0:01:25 > 0:01:27All these properties were bought at auction.
0:01:27 > 0:01:30We'll find out who bought them and for how much
0:01:30 > 0:01:31when they went under the hammer.
0:01:35 > 0:01:38# Underneath the sky
0:01:38 > 0:01:42# Underneath the sky again
0:01:45 > 0:01:49# Underneath the sky again. #
0:01:49 > 0:01:52This is Folkestone on the South Kent coast.
0:01:52 > 0:01:55Once a holiday resort and ferry port,
0:01:55 > 0:01:56now it's home to the Channel Tunnel
0:01:56 > 0:02:00and a regenerated town centre, which really lives up
0:02:00 > 0:02:03to its name as the cultural quarter and I reckon it's a perfect place
0:02:03 > 0:02:08to see if there are any property bargains bobbing around.
0:02:08 > 0:02:13The property I'm here to see is a flat right here on the seafront.
0:02:13 > 0:02:17As far as locations go, it's a winner!
0:02:17 > 0:02:22The building itself, well, it's a bit of a love or hate moment
0:02:22 > 0:02:25since it's this 1970s' tower block.
0:02:25 > 0:02:27Now, don't judge too soon.
0:02:27 > 0:02:30These concrete structures have their virtues.
0:02:30 > 0:02:32Lots of space, lots of light
0:02:32 > 0:02:35and I'm hoping a lot of property for the guide price
0:02:35 > 0:02:38of £110,000 to £115,000.
0:02:41 > 0:02:44If you think it looks more like an office block than somewhere
0:02:44 > 0:02:46to live, then you'd be right,
0:02:46 > 0:02:50since it was originally offices for an insurance company.
0:02:50 > 0:02:54Today, security is still paramount with key fobs and codes
0:02:54 > 0:02:58and multiple doors to get into the beautifully maintained lobby area.
0:02:58 > 0:02:59Going up...
0:02:59 > 0:03:02# Everything is going up. #
0:03:02 > 0:03:06..to the seventh floor, and already first impressions are pretty good.
0:03:07 > 0:03:09Just look at that view!
0:03:11 > 0:03:14I'm really impressed so far with the communal areas.
0:03:14 > 0:03:18So often, it's that that lets a property down. But, wow!
0:03:18 > 0:03:23The geography of this place. It goes that way, that way.
0:03:23 > 0:03:25It feels really spacious.
0:03:25 > 0:03:29Quite '80s in its decor, but really clean and tidy.
0:03:29 > 0:03:33The kitchen, I mean, you know, you could rent this out immediately.
0:03:33 > 0:03:38Clean as a whistle. It really is. Through into the lounge.
0:03:38 > 0:03:44You've got the most enormous room here. It is huge!
0:03:44 > 0:03:46I did think possibly you could move the kitchen into here,
0:03:46 > 0:03:49but why would you bother?
0:03:49 > 0:03:53Potentially, I might take that wall out, but look, you've got one, two,
0:03:53 > 0:03:59three, four huge windows with the most unbelievable view of the sea.
0:03:59 > 0:04:01I mean, it's breathtaking!
0:04:01 > 0:04:06What you have here is a panoramic view of Folkestone. It's awesome!
0:04:06 > 0:04:09# Ease your feet off in the sea
0:04:09 > 0:04:12# My darling it's the place to be. #
0:04:12 > 0:04:16A lovely townscape on your right, but fancy a sight of the sea?
0:04:16 > 0:04:18Just look to your left.
0:04:18 > 0:04:21Coming up here feels like you've escaped into another world.
0:04:21 > 0:04:24It would be almost like living in a plush hotel.
0:04:24 > 0:04:27Away from the crowds, but right in the heart of the town.
0:04:27 > 0:04:30On a practical note, next to the living room and kitchen,
0:04:30 > 0:04:32you've got a loo and utility area.
0:04:32 > 0:04:35And then a reasonable double bedroom down the corridor
0:04:35 > 0:04:40followed by another OK double and a family bathroom.
0:04:40 > 0:04:43So out of the three bedrooms that you get with this flat,
0:04:43 > 0:04:45this one is the largest. It's the master.
0:04:45 > 0:04:49It comes complete with bedroom furniture, if that's your kind of thing.
0:04:49 > 0:04:53And it's got a really nice little ensuite bathroom through here.
0:04:53 > 0:04:56Again, it's just so clean and tidy everywhere.
0:04:56 > 0:04:59But the best bit about this flat is the amazing view
0:04:59 > 0:05:02looking out on to Folkestone beach.
0:05:02 > 0:05:04It's just sensational. Have a look.
0:05:04 > 0:05:06Go on, out you go.
0:05:09 > 0:05:12The fantastic views and superb communal areas
0:05:12 > 0:05:14even include a roof terrace.
0:05:15 > 0:05:18This outside space is a little bit tired,
0:05:18 > 0:05:21which is the first downside I have found.
0:05:21 > 0:05:24The communal areas in this block are beautifully maintained
0:05:24 > 0:05:28and having a lift to the seventh floor is a must.
0:05:28 > 0:05:30But these things don't come for free
0:05:30 > 0:05:34and the service charge for this flat is staggeringly huge.
0:05:34 > 0:05:37In fact, it's £5,000 a year.
0:05:37 > 0:05:40Now, I couldn't quite believe that when I heard it
0:05:40 > 0:05:42because that is steep even for central London
0:05:42 > 0:05:45and will make this place so much harder to sell on
0:05:45 > 0:05:48and slash your profit if you are hoping to rent it out.
0:05:48 > 0:05:53The sun may be shining but I can see storm clouds ahead for whoever bought this one.
0:05:53 > 0:05:55# Warning
0:05:57 > 0:05:58# Danger. #
0:06:01 > 0:06:06As if the £400 a month service charge wasn't enough, there's no parking.
0:06:06 > 0:06:08That might put a lot of people off.
0:06:08 > 0:06:11What does a local agent make of this unusual lot?
0:06:13 > 0:06:16The building is very well located, close to town.
0:06:16 > 0:06:18It's very well maintained.
0:06:18 > 0:06:23The main selling point of this flat is its view, its location, its space.
0:06:24 > 0:06:26The service charge in this building is pretty high.
0:06:26 > 0:06:29In fact, it is certainly the highest in the area.
0:06:29 > 0:06:33It would make it very difficult to rent the property viably.
0:06:33 > 0:06:35How would he value the property?
0:06:35 > 0:06:37It's a lovely property and in another location
0:06:37 > 0:06:40with a lower service charge it would be worth a lot more.
0:06:40 > 0:06:43But as it stands, about £125,000.
0:06:44 > 0:06:47Could a make-over improve its value?
0:06:47 > 0:06:50If you ripped out the bathrooms and kitchen and put in
0:06:50 > 0:06:54state-of-the-art modern facilities, perhaps you could push to 140 or 145.
0:06:54 > 0:06:57But that would be the absolute limit.
0:06:57 > 0:07:01What rental could this property command?
0:07:01 > 0:07:04The rentals in this area for this sort of property,
0:07:04 > 0:07:10given the limitations of parking, would be around £725 a month.
0:07:10 > 0:07:15Amazing views, amazing location, amazing flat.
0:07:15 > 0:07:17It's just that service charge
0:07:17 > 0:07:20that's the fly in the property developer ointment.
0:07:20 > 0:07:24Let's find out who wanted it anyway at the auction.
0:07:24 > 0:07:27Lot 99, we go to now. A three-bedroom apartment.
0:07:27 > 0:07:31Excellent views from a landmark building. A stunning building.
0:07:31 > 0:07:33Do I see £110,000 anywhere just to start me off?
0:07:33 > 0:07:35£110,000. 110.
0:07:35 > 0:07:39It's in the room and it's going to be sold. 110, I've got.
0:07:39 > 0:07:43115 now do I see? 115. 115 and 120.
0:07:43 > 0:07:48120, do I see? At 115 I've got.
0:07:48 > 0:07:53118 I'll take, if it will help. Are we all done? £118,000 bid I've got.
0:07:53 > 0:07:55120 now. 120.
0:07:55 > 0:07:59120 and two. And four. 124.
0:07:59 > 0:08:04And six. And eight. 128. 128.
0:08:04 > 0:08:07126, I'm obliged.
0:08:07 > 0:08:10At £126,000, sitting down in the middle there.
0:08:10 > 0:08:12At 126 for the first time.
0:08:12 > 0:08:16126, unless I get another two, for the second time.
0:08:16 > 0:08:20Third and final time for £126,000, Are we all done?
0:08:20 > 0:08:22To the blonde lady at 126.
0:08:22 > 0:08:25Against you at the back. Are we all done?
0:08:25 > 0:08:27126, madam, it's yours. F947.
0:08:27 > 0:08:29Thank you.
0:08:29 > 0:08:32# Seaside woman. #
0:08:32 > 0:08:34And the successful bidder was Fiona,
0:08:34 > 0:08:37a part-time developer from the local area.
0:08:37 > 0:08:41Her successful bid was 126,000.
0:08:41 > 0:08:43Fiona, lovely to meet you today.
0:08:43 > 0:08:47I have got the biggest smile on my face. I love this flat.
0:08:47 > 0:08:49I think it's amazing.
0:08:49 > 0:08:51I know. We were very lucky, actually.
0:08:51 > 0:08:55When I went to auction, this was not a property I was looking at.
0:08:55 > 0:09:00- I had not viewed it at all. - So did you know the building?- No.
0:09:00 > 0:09:05You didn't even know the building. So there you were on auction day.
0:09:05 > 0:09:08- Had you read the legal pack? That means a no then?- That means no.
0:09:08 > 0:09:13Yes, no. Purely because I probably read six other legal packs.
0:09:13 > 0:09:16There were other properties I was interested in.
0:09:16 > 0:09:19My partner was looking at some things as well,
0:09:19 > 0:09:20which didn't come to anything.
0:09:20 > 0:09:24So I can't read all the legal packs.
0:09:24 > 0:09:26What happened next?
0:09:26 > 0:09:29I was quite disappointed because it was too nice.
0:09:29 > 0:09:31What?
0:09:31 > 0:09:33In a real crazy, warped way,
0:09:33 > 0:09:35I like to walk into a property that is absolute rubbish
0:09:35 > 0:09:38and know that I've actually bought something
0:09:38 > 0:09:40that's going to earn me some money.
0:09:40 > 0:09:43So, come on, tell me, the biggest downside
0:09:43 > 0:09:47to having not read the legal pack is?
0:09:47 > 0:09:51- The maintenance charges. - Go on, hit me with it.- 5,000.
0:09:51 > 0:09:54- That would make me cry. - Yes, it made me cry.- There you go.
0:09:54 > 0:09:56- You've been stung with that.- Yes.
0:09:56 > 0:10:00That is probably why this ended up going to an auction in the first place
0:10:00 > 0:10:03because not many people that own a three bed flat in Folkestone
0:10:03 > 0:10:05- would want to be paying five grand a year.- No.
0:10:07 > 0:10:12That £5,000 service charge certainly is a sting in the tail for Fiona
0:10:12 > 0:10:16and I'm concerned it will affect the property's value.
0:10:16 > 0:10:18How are you going to add value here?
0:10:18 > 0:10:23At the moment, as nice as it is, if it was going to be for rental
0:10:23 > 0:10:26purposes, I probably wouldn't do very much to it.
0:10:26 > 0:10:30But the situation in Folkestone is, we do have people
0:10:30 > 0:10:34coming down from London now and we have the fast train link.
0:10:34 > 0:10:37There are a lot of retired people
0:10:37 > 0:10:39that want to live in properties like this
0:10:39 > 0:10:42for the security and the views, obviously.
0:10:42 > 0:10:45There are quite a lot of properties out there
0:10:45 > 0:10:47so this one has to have an edge.
0:10:47 > 0:10:52It's going to be like a London flat, not a Folkestone flat.
0:10:52 > 0:10:55Everything will be done to a very high standard.
0:10:55 > 0:11:00So I hope when people walk in here, they don't want to go anywhere else.
0:11:00 > 0:11:04Everything will be brand-new. The kitchen will have all appliances.
0:11:04 > 0:11:07It will all be integrated. It will be high-end.
0:11:07 > 0:11:08I'm panicking already.
0:11:08 > 0:11:11- I'm panicking.- You're thinking, money, money, money.
0:11:11 > 0:11:14I really am panicking.
0:11:14 > 0:11:17Fiona has set a budget of £25,000 and I'm so worried
0:11:17 > 0:11:21that she will just simply not get her money back.
0:11:21 > 0:11:23# This is a warning
0:11:23 > 0:11:26# This is a warning. #
0:11:26 > 0:11:30This is the fourth property that has been renovated in Folkestone
0:11:30 > 0:11:33and each one has been done...
0:11:33 > 0:11:36It was a dangerous decision to make
0:11:36 > 0:11:40and each one was probably over renovated.
0:11:40 > 0:11:43But we did get the top price for them.
0:11:43 > 0:11:46Is there anything you are worried about now that you have bought it
0:11:46 > 0:11:49and you have to now put the labour in and the work and the funds?
0:11:49 > 0:11:53I'm worried about getting it done on time because obviously,
0:11:53 > 0:11:56each month we have the property, we are paying the maintenance anyway.
0:11:56 > 0:12:01This is a summer property. Are you going to have this ready by the end of this summer?
0:12:01 > 0:12:05- What do you think?- That was the other problem with the legal pack.
0:12:05 > 0:12:10Most properties, as you know, are 28 days completion, which suited us
0:12:10 > 0:12:15to the ground because this then would have been on the market now, really.
0:12:15 > 0:12:19The legal pack stated that the owners wanted a 60 day completion
0:12:19 > 0:12:24so that threw us out by another month, which was really important
0:12:24 > 0:12:26because of the weather.
0:12:26 > 0:12:31So hopefully, this gets back on the market by mid-September.
0:12:31 > 0:12:34But we need a real good Indian summer for that.
0:12:34 > 0:12:36Fiona, it's been lovely meeting you today.
0:12:36 > 0:12:40I cannot wait to see what you do here. It's a great property.
0:12:40 > 0:12:42- Well done.- Thank you.
0:12:44 > 0:12:49Can you believe it? Fiona was disappointed with this lovely flat!
0:12:49 > 0:12:51I do understand how she feels.
0:12:51 > 0:12:56I love to see a transformation but there is scope to improve here.
0:12:56 > 0:12:59She just needs to be careful not to overspend.
0:12:59 > 0:13:03You can find out how it all goes later in the show.
0:13:09 > 0:13:11Welcome to Willaston in Cheshire.
0:13:11 > 0:13:15An idyllic little village with links to nearby Nantwich and Crewe.
0:13:15 > 0:13:19An affluent area, popular with buyers and renters alike.
0:13:21 > 0:13:24On the surface, Willaston is like many other little villages
0:13:24 > 0:13:28but go digging around and there is a small difference.
0:13:30 > 0:13:35So why once a year do people from all over the globe
0:13:35 > 0:13:39descend on this normally peaceful Cheshire village?
0:13:39 > 0:13:42Well, that's because Willaston is the home
0:13:42 > 0:13:46to the annual World Worm Charming Championships.
0:13:47 > 0:13:49# Can you dig it. #
0:13:49 > 0:13:51What do you mean, you've never heard of it?
0:13:51 > 0:13:54The Worm Charming World Championships!
0:13:54 > 0:13:56If you haven't, you must be living under a rock.
0:13:56 > 0:13:59The mind boggles at what that might actually mean,
0:13:59 > 0:14:01but at least you can be sure that
0:14:01 > 0:14:04if you move to this village, you would be surrounded
0:14:04 > 0:14:07by down-to-earth neighbours with charming personalities.
0:14:07 > 0:14:09# Can you dig it. #
0:14:09 > 0:14:14And so I worm my way down the street to take a look at the property
0:14:14 > 0:14:18that was up for auction and it's this three-bedroom semidetached.
0:14:18 > 0:14:21It had a guide price of £115,000.
0:14:21 > 0:14:24It looks like quite a lot of property for the money.
0:14:24 > 0:14:26There's only one way to find out. Let's get a wiggle on!
0:14:33 > 0:14:36So, what's on offer? Well, fairly standard layout.
0:14:36 > 0:14:39Stairs up to your bedrooms there and then through into your living room.
0:14:39 > 0:14:42It's lovely that you've got this bay window.
0:14:42 > 0:14:46It looks like it needs a bit of work but lots of light flooding in here, which is nice to see.
0:14:46 > 0:14:50The fireplace could do with modernising
0:14:50 > 0:14:52but my eye isn't actually taken by that.
0:14:52 > 0:14:55It's taken straight down here.
0:14:55 > 0:14:58Look at this. Nasty.
0:14:59 > 0:15:03It doesn't feel particularly damp but something is seriously going on there
0:15:03 > 0:15:06that would need to be sorted out.
0:15:06 > 0:15:08Let's hope it doesn't carry on through.
0:15:09 > 0:15:16Possible signs of why the guide price is just £115,000 then.
0:15:16 > 0:15:18It is, however, a good-sized living room.
0:15:20 > 0:15:23And the bay window adds a little character.
0:15:25 > 0:15:28Well, it's not a bad size kitchen.
0:15:28 > 0:15:32Clearly in need of some updating for sure.
0:15:32 > 0:15:35Although, this brick look is very in fashion at the moment.
0:15:35 > 0:15:39Just...it's not normally just bricks that have been painted!
0:15:39 > 0:15:42A useful under stairs area there.
0:15:42 > 0:15:46So a bit of playing around here and that would be OK.
0:15:46 > 0:15:50Where it starts to go a bit wrong is the fact that off the kitchen
0:15:50 > 0:15:53is the only bathroom in the property.
0:15:53 > 0:15:56This here is the wall that had those problems.
0:15:56 > 0:16:01You come into this bathroom and, boy oh boy, are there some issues going on.
0:16:01 > 0:16:05The floor, if you can see, is actually really badly dipped.
0:16:05 > 0:16:10I don't know what's going on because it's obviously had some major issues
0:16:10 > 0:16:13and I wonder if this was the start of the problem
0:16:13 > 0:16:16and that's led to those problems next door.
0:16:16 > 0:16:20Either way, this needs to be investigated and I bet once you start digging down here,
0:16:20 > 0:16:24you are going to unearth yourself a whole heap of problems.
0:16:24 > 0:16:27# Welcome to my nightmare. #
0:16:30 > 0:16:34A sloping floor can certainly spell trouble and expense.
0:16:34 > 0:16:38Move upstairs though and things look brighter.
0:16:39 > 0:16:41A good-sized bedroom at the front.
0:16:42 > 0:16:46And two smaller bedrooms at the back mean that whoever buys this house
0:16:46 > 0:16:50might want to pinch some space for an upstairs bathroom.
0:16:52 > 0:16:55Well, at the rear of the property you've got this little outbuilding,
0:16:55 > 0:17:00which in itself is actually quite pretty with these bricks, but if you look at what next door have done,
0:17:00 > 0:17:04they've built an extension incorporating this, which is definitely a good way to go.
0:17:04 > 0:17:07You've certainly got enough space, not only with that,
0:17:07 > 0:17:10but at the rear here where there is this really nice sized garden.
0:17:10 > 0:17:15It needs a bit of tender love and care, but lots of space to be playing with.
0:17:16 > 0:17:20A house that is in need of some TLC then.
0:17:20 > 0:17:25But with a guide price of just £115,000 in such a popular area,
0:17:25 > 0:17:28this could be a real opportunity for the right person.
0:17:30 > 0:17:32Does a local estate agent agree?
0:17:33 > 0:17:35The property has got great potential.
0:17:35 > 0:17:38With a neat finish and good presentation, it would be perfect
0:17:38 > 0:17:41for young buyers or tenants looking to move into the area.
0:17:41 > 0:17:45The current layout of the property isn't ideal for the family buyer.
0:17:45 > 0:17:48But certainly, moving the bathroom from the ground level
0:17:48 > 0:17:51to the first floor would be an excellent change.
0:17:51 > 0:17:54So who would this property appeal to?
0:17:54 > 0:17:57Market conditions are very strong in this area.
0:17:57 > 0:17:59Very popular with local buyers
0:17:59 > 0:18:03and a number of couples and families are looking to move into the area.
0:18:03 > 0:18:08If the house went for anything like the guide price of 115,000,
0:18:08 > 0:18:12even with the work to be done, there could be a good profit here.
0:18:12 > 0:18:16What kind of rental could it achieve in this popular area?
0:18:16 > 0:18:21In my opinion, this property will rent for a figure of £695 per calendar month.
0:18:21 > 0:18:25Once the refurbishment is done, how much could we expect to sell for?
0:18:25 > 0:18:28Once this property has been refurbished and the bathroom
0:18:28 > 0:18:32has been moved, I would expect to achieve in the region of £175,000.
0:18:33 > 0:18:37So a good property? Oh, yes. I'd say a very good property, in fact.
0:18:37 > 0:18:41Yes, there are a few issues to sort out like the damp and that bathroom floor.
0:18:41 > 0:18:46But a really nice area and a lot of house for that guide price.
0:18:46 > 0:18:49Let's see who agreed when it went under the hammer.
0:18:53 > 0:18:58Lot 40. Three-bedroom semidetached house. It does require modernising.
0:18:58 > 0:19:02It's got a driveway and garden and a pleasant village location.
0:19:02 > 0:19:0695 then, to get it going? Lot number 40.
0:19:06 > 0:19:1095 bid, thank you. At 95,000. 100, can I say now?
0:19:10 > 0:19:13At £95,000. Yes, 100.
0:19:13 > 0:19:15At 100,000. 105?
0:19:16 > 0:19:19£105,000.
0:19:20 > 0:19:26106. 107. 108. 109.
0:19:26 > 0:19:30£109,000. 109.
0:19:30 > 0:19:34At £109,000, are we all done?
0:19:34 > 0:19:36110.
0:19:37 > 0:19:39111.
0:19:39 > 0:19:40112.
0:19:43 > 0:19:47At 112. Seated, against you, standing.
0:19:47 > 0:19:51At £112,000. Another one. Be quick.
0:19:51 > 0:19:55The bid is at 112 and I'm selling it at 112. Are we all done?
0:19:55 > 0:20:01113 anywhere else? If not, £112,000 for the first time.
0:20:01 > 0:20:04£112,000 for the second time.
0:20:04 > 0:20:07Third and final time at £112,000.
0:20:07 > 0:20:10You've bought it, sir. Well done.
0:20:13 > 0:20:16Sophie is looking a bit shell-shocked having bought this semi
0:20:16 > 0:20:22for £112,000 after her dad Anthony made that final bid on her behalf.
0:20:22 > 0:20:24And at the ripe old age of 22,
0:20:24 > 0:20:28she's got the key to the door of her first property.
0:20:28 > 0:20:30- Sophie, great to meet you. - Hi, Andrew.
0:20:30 > 0:20:32- Congratulations.- Thank you.
0:20:32 > 0:20:36- You look quite excited to have got this then?- Yeah, really excited.
0:20:36 > 0:20:38To be honest, we didn't think we were going to get it,
0:20:38 > 0:20:42- thought it would go for a lot more. - I wonder why it didn't?
0:20:42 > 0:20:45There is quite a lot of work that needs to be done
0:20:45 > 0:20:49and maybe there wasn't the right people at the auction, I'm not sure.
0:20:49 > 0:20:53- Right, but happy news for you. - Yeah, really good.
0:20:53 > 0:20:55So tell me why you wanted to buy it?
0:20:55 > 0:20:57Just to get on the property ladder, really.
0:20:57 > 0:21:00I've been looking at renting but I think I would prefer to start
0:21:00 > 0:21:02a mortgage and just get on the property ladder.
0:21:02 > 0:21:05- So this is going to be your home, is it?- Yeah, yeah.
0:21:05 > 0:21:08I wanted to put my own stamp on somewhere as well, really.
0:21:08 > 0:21:11My dad's going to help me do it up and a few friends and family.
0:21:11 > 0:21:13This sounds perfect for Sophie.
0:21:13 > 0:21:17With her job as an assistant manager at a golf club just up the road,
0:21:17 > 0:21:21and her family and friends nearby, she won't be short of helpers.
0:21:21 > 0:21:22And she'll need them.
0:21:22 > 0:21:24# Thinking about tomorrow... #
0:21:28 > 0:21:32- It's a big first house, isn't it? - Yeah, well.
0:21:32 > 0:21:36I'd like to add value and then maybe sell it on in a few years.
0:21:36 > 0:21:39So, tell me what you're going to do to put your stamp on this place?
0:21:39 > 0:21:42I'd like to keep the living room as it is, really.
0:21:42 > 0:21:46I think what we'll do is strip it back, dig the floors up,
0:21:46 > 0:21:48- put a damp proof course in.- Right.
0:21:48 > 0:21:52While everything is stripped back, rewire,
0:21:52 > 0:21:55it needs double glazing, central heating. So, the whole lot, really.
0:21:55 > 0:21:57Right, what about layout downstairs?
0:21:57 > 0:22:01Obviously you have the loo downstairs and the bathroom, that's not ideal,
0:22:01 > 0:22:02what's your plans for that?
0:22:02 > 0:22:05I was hoping to move the bathroom upstairs into the smaller bedroom.
0:22:05 > 0:22:08Obviously that will make it into a two-bedroom property.
0:22:08 > 0:22:12Maybe in time I can extend onto the outbuilding,
0:22:12 > 0:22:14but I don't think I'll do that just yet
0:22:14 > 0:22:16because two bedrooms is fine for myself.
0:22:16 > 0:22:19And probably knock through that wall downstairs
0:22:19 > 0:22:22and make it into a big kitchen with a dining table.
0:22:22 > 0:22:25Sophie is a girl with a plan and moving that bathroom
0:22:25 > 0:22:31and extending the kitchen are both the obvious and right things to do.
0:22:31 > 0:22:33# A change
0:22:33 > 0:22:36# Will do you good... #
0:22:36 > 0:22:38I have to admire her sensible approach.
0:22:38 > 0:22:41She's taking it in careful stages and is going to remain
0:22:41 > 0:22:44at her parents while the work is going on.
0:22:44 > 0:22:46And she's got plenty of help.
0:22:46 > 0:22:50Plus she's got a comfortable sounding £20-£25,000 budget.
0:22:52 > 0:22:55So what's the sort of timescale for this?
0:22:55 > 0:22:56I'd like it done tomorrow,
0:22:56 > 0:23:00but I think realistically probably five to six months.
0:23:00 > 0:23:03In the meantime you carry on living at home and then party and move in?
0:23:03 > 0:23:06Well...something like that.
0:23:06 > 0:23:09What's the most exciting thing for you?
0:23:09 > 0:23:11Having people round, I think.
0:23:11 > 0:23:13Like showing them, this is my house.
0:23:13 > 0:23:16Having a barbecue, that would be nice.
0:23:16 > 0:23:19- What do your mum and dad think about all this? - Yeah, they're pleased.
0:23:19 > 0:23:23Dad thinks it's a good idea and I think he's as excited as I am about it.
0:23:23 > 0:23:28Mum said let me know when I want some painting done so...yeah.
0:23:28 > 0:23:31- Good. Listen, congratulations. - Thank you.
0:23:31 > 0:23:33- Good luck with it. - Thanks very much.
0:23:33 > 0:23:36- We look forward to seeing how you get on.- Thank you.
0:23:36 > 0:23:41So, Sophie, not surprisingly really excited to have this as her first house.
0:23:41 > 0:23:45It just goes to show it's not just developers and property developers
0:23:45 > 0:23:49who get good things at the auction, it's first-time buyers too.
0:23:49 > 0:23:51You can find out how she gets on later in the show.
0:23:53 > 0:23:56Still to come, in Edmonton, London,
0:23:56 > 0:23:59a fantastic two-bed terrace with a garden
0:23:59 > 0:24:02is crying out for a make-over and a reshuffle.
0:24:04 > 0:24:07In Willaston, Cheshire, first-time buyer Sophie
0:24:07 > 0:24:10takes a gamble with her three-bed semidetached.
0:24:15 > 0:24:18But first, will this high-rise, seafront apartment
0:24:18 > 0:24:22overcome its big service charge with a suitably high-end finish?
0:24:29 > 0:24:32# Make it... #
0:24:32 > 0:24:36We now return to Folkestone in Kent where earlier I met Fiona,
0:24:36 > 0:24:39a property developer with nerves of steel.
0:24:41 > 0:24:44This three-bedroom apartment with sea views wasn't
0:24:44 > 0:24:48originally on her shopping list, but she took a risk and invested
0:24:48 > 0:24:55£126,000 with no time to read the all-important legal pack beforehand.
0:24:56 > 0:25:02So, come on tell me, the biggest downside to having not read the legal pack is...?
0:25:02 > 0:25:04The maintenance charges.
0:25:04 > 0:25:07- Go on, hit me with it.- 5,000.
0:25:07 > 0:25:10- That would make me cry. - Yes, it made me cry.
0:25:10 > 0:25:13- There you go, you've been stung with that.- Yes.
0:25:13 > 0:25:18Well, Fiona also found out there was no parking and the current vendors
0:25:18 > 0:25:22wanted a 60-day completion date as opposed to the recommended 28.
0:25:24 > 0:25:30She set a time frame of four to eight weeks and a budget of £25,000
0:25:30 > 0:25:34to ensure a high-end finish to pull in the buyers.
0:25:34 > 0:25:38We've returned three months later to see if her leap of faith paid off.
0:25:40 > 0:25:44The kitchen now looks sleek and modern with a fantastic
0:25:44 > 0:25:47American-style fridge freezer and a range cooker.
0:25:47 > 0:25:50MUSIC: "Sunday Shining" by Finley Quaye.
0:25:54 > 0:25:58The panoramic lounge has shaken off the 1980s' decor
0:25:58 > 0:26:00and the service hatch is no more.
0:26:03 > 0:26:06# As the morning gathers a rainbow
0:26:06 > 0:26:08# I want you to know now
0:26:08 > 0:26:10# That I'm a rainbow with you... #
0:26:10 > 0:26:12At the back of the apartments,
0:26:12 > 0:26:15the master bedroom has been modernised and painted
0:26:15 > 0:26:18and its ensuite has a much-needed make-over.
0:26:20 > 0:26:24The two smaller bedrooms to the centre of the property have been
0:26:24 > 0:26:28re-carpeted and repainted to that high standard Fiona wanted.
0:26:29 > 0:26:32# Woah, woah, yeah... #
0:26:38 > 0:26:42The main bathroom has a high-end finish too,
0:26:42 > 0:26:45with a rather lovely looking spa bath added and a chandelier.
0:26:47 > 0:26:51Fiona has transformed this once-dated apartment,
0:26:51 > 0:26:54turning it into a modern, chic, seaside pad.
0:26:55 > 0:27:00What really stands out for me though is that ultra-slick kitchen.
0:27:00 > 0:27:04This room I think has had quite a major change in the respect
0:27:04 > 0:27:12that the doorway, I've opened up so it gives it a feeling of space.
0:27:12 > 0:27:17Built-in microwave, the range oven and this amazing American
0:27:17 > 0:27:22fridge freezer which I absolutely love and lots of wine racks.
0:27:22 > 0:27:25So I'm really, really pleased with this
0:27:25 > 0:27:29and I think it's brought it up to 2013, whereas it was stuck in 1986.
0:27:31 > 0:27:33This former office space turned apartment
0:27:33 > 0:27:35has been dragged into the 21st century
0:27:35 > 0:27:38by Fiona and her team of builders.
0:27:38 > 0:27:41She project-managed from her holiday home in Spain,
0:27:41 > 0:27:44but it hasn't all been sun, sea and sangrias.
0:27:45 > 0:27:48I've had to change everything, to be honest.
0:27:48 > 0:27:51I don't think anything hasn't been changed,
0:27:51 > 0:27:56and there's been more changes than were initially anticipated.
0:27:56 > 0:27:59And because it was an office block originally,
0:27:59 > 0:28:02things like the electrics,
0:28:02 > 0:28:06as the guys were trying to feed through the walls,
0:28:06 > 0:28:08they were hitting steel girders.
0:28:08 > 0:28:12Just... It has been a nightmare, to be honest.
0:28:13 > 0:28:17Originally, Fiona was going to knock through to create a kitchen diner.
0:28:17 > 0:28:19What happened to THAT plan?
0:28:19 > 0:28:24Decided not to go for the open plan kitchen-dining.
0:28:24 > 0:28:26So, instead,
0:28:26 > 0:28:28I've filled the wall in
0:28:28 > 0:28:31to allow maybe for a flatscreen TV on that wall
0:28:31 > 0:28:36so that furnishings will then be forced towards the better view
0:28:36 > 0:28:39and it opens the doorway to the kitchen,
0:28:39 > 0:28:41which gives it that semi-open plan.
0:28:41 > 0:28:46So, we've gone 50/50 on that, but I'm pleased with the result.
0:28:46 > 0:28:48Originally, Fiona planned to spend
0:28:48 > 0:28:53what I thought was a worrying amount - £25,000 - on renovations.
0:28:53 > 0:28:55However, after doing the sums,
0:28:55 > 0:28:59she revised this down to between £15,000-20,000.
0:28:59 > 0:29:03Still generous. So, has she kept to it?
0:29:03 > 0:29:10I'd say the budget has reached 18,500. But I think it's worth it.
0:29:10 > 0:29:14There's things that we changed that we didn't plan on changing,
0:29:14 > 0:29:16and I think, if we hadn't,
0:29:16 > 0:29:19it wouldn't have had the finish that it has.
0:29:21 > 0:29:24It's taken Fiona ten weeks to get to this point,
0:29:24 > 0:29:27so is it time to sell, or would she consider renting?
0:29:29 > 0:29:31I would never rent it, because, to me,
0:29:31 > 0:29:34once it's rented, it's never going to be new again.
0:29:34 > 0:29:37However long it takes, it will just stay on the market
0:29:37 > 0:29:40until the right buyer comes along at the right price.
0:29:40 > 0:29:41And I will be patient.
0:29:41 > 0:29:45I always had a worry that Fiona would overspend on the finish
0:29:45 > 0:29:50in here, given that very off-putting service charge of £5,000.
0:29:50 > 0:29:53So far, her total spend, excluding legal fees and stamp duty,
0:29:53 > 0:29:56comes to 144,000.
0:29:56 > 0:29:59That's almost bang on what the agent who came to see it
0:29:59 > 0:30:02thought the flat could fetch at top spec.
0:30:02 > 0:30:03Yikes!
0:30:05 > 0:30:07We've invited two property experts along
0:30:07 > 0:30:09to judge just how much patience
0:30:09 > 0:30:11Fiona will need.
0:30:11 > 0:30:13I saw this property
0:30:13 > 0:30:15before the improvements were done,
0:30:15 > 0:30:17and I think the owner has made a fabulous job here,
0:30:17 > 0:30:21it's absolutely amazing what she's achieved here.
0:30:21 > 0:30:23I certainly like the view from the lounge.
0:30:23 > 0:30:25Having a double aspect
0:30:25 > 0:30:28and a view over the Channel is beautiful.
0:30:29 > 0:30:32There is no doubt this flat is in a fantastic position,
0:30:32 > 0:30:36and Fiona has made it her vision of a lovely high-end property
0:30:36 > 0:30:41with great appeal, but there are storm clouds still on the horizon.
0:30:41 > 0:30:43Major sticking points with this apartment are,
0:30:43 > 0:30:46one, there is no onsite parking,
0:30:46 > 0:30:49and two, the service charges are extremely high.
0:30:49 > 0:30:51Let's put it that way.
0:30:51 > 0:30:55I get why Fiona doesn't want to rent this apartment out.
0:30:55 > 0:30:58Having got it to this standard, she would have to spend money
0:30:58 > 0:31:00maintaining it if her tenants were to move on,
0:31:00 > 0:31:02which would eat into her profit.
0:31:02 > 0:31:05But if she ran out of patience waiting for a buyer,
0:31:05 > 0:31:08what would she achieve on the rental market?
0:31:09 > 0:31:11If she were to rent out this property, I think
0:31:11 > 0:31:15she would achieve around £950 per calendar month.
0:31:15 > 0:31:18I think this would achieve around £950 per calendar month.
0:31:18 > 0:31:22Giving a rental yield of between 7 and 8%.
0:31:22 > 0:31:26But it's only selling Fiona has her heart set on.
0:31:26 > 0:31:29To sell properly, I would say about 175,000.
0:31:29 > 0:31:33I would suggest a figure of around £165,000.
0:31:33 > 0:31:35I think it's quite laughable!
0:31:36 > 0:31:39But, hey, that's not a problem at all,
0:31:39 > 0:31:42because I actually had one of the residents here
0:31:42 > 0:31:45ask how much we wanted for it,
0:31:45 > 0:31:49and they were prepared to pay 195, which we turned down.
0:31:49 > 0:31:50So, that says it all.
0:31:52 > 0:31:58That top figure would give Fiona a pre-tax profit of £29,500.
0:31:58 > 0:32:02But she's now got it on the market at £249,000,
0:32:02 > 0:32:09which would mean a £103,500 profit before tax and expenses.
0:32:09 > 0:32:12So, taking that risk looks like it might pay off.
0:32:14 > 0:32:16If something comes up, jumps up,
0:32:16 > 0:32:18that you think on the face of it looks good,
0:32:18 > 0:32:20then maybe just take a chance.
0:32:20 > 0:32:21That's what life's all about.
0:32:31 > 0:32:33And someone else who took that chance
0:32:33 > 0:32:36did it here in Edmonton, North London,
0:32:36 > 0:32:39a bustling and vibrant area of the capital.
0:32:42 > 0:32:45It has a varied housing stock.
0:32:45 > 0:32:48'30s homes, modern blocks and charming terraced houses,
0:32:48 > 0:32:50and some open spaces.
0:32:50 > 0:32:51This is a part of the capital
0:32:51 > 0:32:54that could yield some interesting possibilities.
0:32:55 > 0:32:58In a city where the average price of a terrace is - wait for it -
0:32:58 > 0:33:00half a million quid,
0:33:00 > 0:33:05the property I'm here to see sounds like a bit of a steal.
0:33:05 > 0:33:07It's this two-bedroom Victorian house,
0:33:07 > 0:33:10and it had a guide price of £155,000.
0:33:10 > 0:33:12I'm going to check it out.
0:33:14 > 0:33:16In these tough financial times,
0:33:16 > 0:33:19places like Edmonton become a lot more attractive
0:33:19 > 0:33:22to first-time buyers and property investors alike.
0:33:22 > 0:33:24- # Money talks - Listen!
0:33:24 > 0:33:26- # Money talks - Get money
0:33:26 > 0:33:28# Dirty cash I want you
0:33:28 > 0:33:30# Dirty cash I need you, whoa-oh... #
0:33:31 > 0:33:34With a big money redevelopment scheme under way nearby,
0:33:34 > 0:33:38and train links into the city, this little two-bed terrace
0:33:38 > 0:33:41in the heart of Edmonton could be just the ticket.
0:33:42 > 0:33:46So, a little bit dated and tired, but that's how I like 'em.
0:33:46 > 0:33:48It quite excites me when you walk into a property
0:33:48 > 0:33:51and straightaway you know you can add something.
0:33:51 > 0:33:53I wonder what went there!
0:33:53 > 0:33:54So, here we have the lounge.
0:33:54 > 0:33:56What have we got that I like in there?
0:33:56 > 0:33:59Well, for starters, some lovely cornicing.
0:33:59 > 0:34:02I'd get rid of those ugly polystyrene tiles,
0:34:02 > 0:34:03they'll have to come down.
0:34:03 > 0:34:06The fireplace - not fabulous, so I'd probably get rid of that.
0:34:06 > 0:34:09Put something more traditional in its place.
0:34:09 > 0:34:12Second reception room - again, a great size.
0:34:12 > 0:34:14Bit of a woodchip nightmare.
0:34:14 > 0:34:18And, saying that, you could probably take this partition out
0:34:18 > 0:34:20and have an open staircase.
0:34:20 > 0:34:22I know under here there's a great big cupboard,
0:34:22 > 0:34:25so you could easily have a bit more space in the room.
0:34:25 > 0:34:28Also, if you wanted to, you could knock through here.
0:34:28 > 0:34:31You'd need to install some gas central heating,
0:34:31 > 0:34:33that wouldn't go amiss in the property.
0:34:33 > 0:34:34And then, down here, look -
0:34:34 > 0:34:37a really good-sized kitchen, square in size.
0:34:37 > 0:34:40It's practical. It's not massive, but you know what?
0:34:40 > 0:34:42So far, I think this house works.
0:34:44 > 0:34:46# Your love
0:34:46 > 0:34:48# Lifting me higher... #
0:34:49 > 0:34:51Not only does it have high ceilings
0:34:51 > 0:34:54and a nice compact kitchen downstairs...
0:34:54 > 0:34:57it also boasts a good-sized garden.
0:34:57 > 0:35:00In London!
0:35:00 > 0:35:03Upstairs you have a big double at the front...
0:35:05 > 0:35:07..a good-sized double in the middle...
0:35:09 > 0:35:13..and a large bathroom at the rear. Which gives me an idea...
0:35:15 > 0:35:18I reckon if you steal a bit of space from the front bedroom, here,
0:35:18 > 0:35:20and this middle bedroom,
0:35:20 > 0:35:22and you moved the doorway over
0:35:22 > 0:35:24and create an internal bathroom along here,
0:35:24 > 0:35:27then you can free up the existing bathroom space
0:35:27 > 0:35:29to be your third bedroom.
0:35:29 > 0:35:31It's not ideal,
0:35:31 > 0:35:33and I do like the layout as it is,
0:35:33 > 0:35:37but if you're thinking of maximising your rental and even resale profit,
0:35:37 > 0:35:39I think it's worth considering.
0:35:41 > 0:35:44There's no doubt that creating an extra bedroom would cost you,
0:35:44 > 0:35:48but as the saying goes, you've got to spend money to make money.
0:35:51 > 0:35:54With rental prices in London at an all-time high,
0:35:54 > 0:35:58it might be tempting to try and buy somewhere to let out.
0:35:58 > 0:36:02But here in the capital, unless you have several hundred thousand pounds
0:36:02 > 0:36:06in cash knocking around, you have to rely on a buy-to-let mortgage,
0:36:06 > 0:36:11and those are still not offering terribly good rates of interest.
0:36:11 > 0:36:15Here in Edmonton, however, the dream becomes a bit more of a reality.
0:36:15 > 0:36:19With prices not so terrifying and the rental market booming,
0:36:19 > 0:36:22you may be able to borrow that bit less
0:36:22 > 0:36:25and then reap that bit more in rental rewards.
0:36:26 > 0:36:29# Sweet dreams are made of this... #
0:36:31 > 0:36:36The guide price of 155,000, while still being a lot of money,
0:36:36 > 0:36:39almost makes the dream of entering London's property investment world
0:36:39 > 0:36:41a bit more of a reality.
0:36:41 > 0:36:45What did a local estate agent make of this two-bed terrace?
0:36:48 > 0:36:51My first impression of this property is it needs quite a bit of work,
0:36:51 > 0:36:54but it's in a good area and will give a good yield to the owner.
0:36:54 > 0:36:57In my opinion, the new owner should be aiming at the rental market.
0:36:57 > 0:37:01It's a great location, you're going to get a very high yield.
0:37:01 > 0:37:02After a refurbishment is done,
0:37:02 > 0:37:06what could be the potential value of the property?
0:37:06 > 0:37:10Once refurbished, it would go on the market for £230,000.
0:37:11 > 0:37:14And if the bathroom was moved and an extra bedroom was added?
0:37:14 > 0:37:16If you were to create the third bedroom
0:37:16 > 0:37:18and put the bathroom in the middle of the house,
0:37:18 > 0:37:21it would go on the market for £250,000.
0:37:21 > 0:37:23And what rental value could we expect?
0:37:23 > 0:37:26If it was a two-bedroom house, to go on the market for rental,
0:37:26 > 0:37:30it would go on for £1,250 per calendar month.
0:37:30 > 0:37:34And as a three-bedroom house, on the market for 1,400 per calendar month.
0:37:34 > 0:37:38This is a decent house, with scope to dramatically improve.
0:37:38 > 0:37:41Let's see who went for it, and why they wanted it, at the auction.
0:37:45 > 0:37:49It's an appealing two-bedroom bay-fronted mid-terraced house.
0:37:49 > 0:37:51Requires modernisation.
0:37:51 > 0:37:53Invite your bids. 190, anywhere?
0:37:54 > 0:37:57If not, you tell me. 190?
0:37:57 > 0:37:58150.
0:37:59 > 0:38:02155 anywhere?
0:38:02 > 0:38:05155, I'll come to 155. 160, where is it? 160.
0:38:05 > 0:38:10165. 170, sir.
0:38:10 > 0:38:12170, 175.
0:38:12 > 0:38:15180. 185.
0:38:15 > 0:38:16186?
0:38:18 > 0:38:20No?
0:38:20 > 0:38:22185, there. 186, new place.
0:38:22 > 0:38:25187. I'll come to you, 187.
0:38:25 > 0:38:26188.
0:38:26 > 0:38:28189.
0:38:28 > 0:38:35With bids overtaking the guide price, we rejoin at 201,000.
0:38:35 > 0:38:37Anybody else for lot 71?
0:38:37 > 0:38:40201 back here. 202.
0:38:40 > 0:38:42202, 203.
0:38:42 > 0:38:44204.
0:38:44 > 0:38:47205. 206. No?
0:38:47 > 0:38:52It's with you, sir, on my right. Bid's £205,000.
0:38:52 > 0:38:53Anybody else?
0:38:53 > 0:38:54It's against you on my left.
0:38:54 > 0:38:57Anybody else? If not, 205 for the first.
0:38:57 > 0:38:59205 for the second.
0:38:59 > 0:39:02205 for the...206, back in.
0:39:02 > 0:39:04207? No.
0:39:04 > 0:39:06You said that last time.
0:39:06 > 0:39:07206 for the first.
0:39:07 > 0:39:09206 for the second.
0:39:09 > 0:39:12206 for the third and final time.
0:39:12 > 0:39:14All done? Sold, 206.
0:39:14 > 0:39:18MUSIC: "Our House" by Madness
0:39:18 > 0:39:23And the successful bidder is paramedic and local boy Gary.
0:39:23 > 0:39:27He paid 51 grand over the guide price of 155,000,
0:39:27 > 0:39:30so will he be able to resuscitate this two-bed terrace?
0:39:30 > 0:39:32# Our house
0:39:32 > 0:39:35# In the middle of our street...
0:39:35 > 0:39:37- Gary, congratulations.- Thank you.
0:39:37 > 0:39:40You must be so pleased that you got this on auction day.
0:39:40 > 0:39:41Yes... Yeah, no.
0:39:41 > 0:39:44I'd like to have paid a little bit less, but I was quite happy.
0:39:44 > 0:39:47So, come on, then, how much did you want to pay?
0:39:47 > 0:39:52- Um, 205 was my limit. - OK, so you only went £1,000 over!
0:39:52 > 0:39:54This is about the third auction I've been to,
0:39:54 > 0:39:57and I've stuck to that limit all the time.
0:39:57 > 0:39:59This is the first time I've brought someone with me
0:39:59 > 0:40:02and I got a nudge, and he says, "Go for another thousand."
0:40:02 > 0:40:05- Yeah. - So, I put one more in and I got it.
0:40:05 > 0:40:09I wasn't too sure if I'd gone too much over, but I'm happy.
0:40:09 > 0:40:13While I don't think Gary's got himself a complete bargain here,
0:40:13 > 0:40:15there's so much potential in this house,
0:40:15 > 0:40:18I'm sure with this, his first property investment,
0:40:18 > 0:40:20he stands a good chance of making some profit.
0:40:20 > 0:40:23So, what is he planning to do?
0:40:24 > 0:40:27Don't intend to sell straightaway.
0:40:27 > 0:40:30I want to rent for at least two to five years.
0:40:30 > 0:40:33Hopefully make it into a three-bedroom
0:40:33 > 0:40:37and get as max rent as I can, really.
0:40:37 > 0:40:38So, tell me, how are you going to move forward
0:40:38 > 0:40:40and create that third bedroom?
0:40:40 > 0:40:42Um, I had a few ideas.
0:40:42 > 0:40:45I was thinking about extensions,
0:40:45 > 0:40:50but the cheapest idea I think I will go with is the middle bedroom,
0:40:50 > 0:40:54make that into a bathroom - unfortunately there'll be no light,
0:40:54 > 0:40:58it'll be a sealed internal bathroom, and have that small third bedroom.
0:40:58 > 0:41:00I think it'll be a small bathroom,
0:41:00 > 0:41:02but it'll be such a worthwhile exercise.
0:41:02 > 0:41:04Maybe a wet room or something like that.
0:41:04 > 0:41:05So, when did you come up with that idea?
0:41:05 > 0:41:07Um, after talking to an estate agent recently.
0:41:07 > 0:41:10What about knocking through these two rooms between the, er...
0:41:10 > 0:41:13- two reception rooms?- I think if I was going to be living here myself,
0:41:13 > 0:41:15it would be something I'd definitely like to do,
0:41:15 > 0:41:18but I thought, renting it, it would give them an option
0:41:18 > 0:41:21of keeping that room separate and doing what they want with it,
0:41:21 > 0:41:26whoever rents it, so...I probably will keep the separate room there.
0:41:26 > 0:41:29I think, to try and maximise a bit more space,
0:41:29 > 0:41:32have all the chimney breasts taken out throughout the house.
0:41:32 > 0:41:35One's already been taken out, from the kitchen.
0:41:35 > 0:41:38Oh, I don't know, that could be quite a costly exercise.
0:41:38 > 0:41:41- I mean, they're big, solid old beasts, some of those.- Yeah...
0:41:41 > 0:41:43And if you were to put a nice fireplace there,
0:41:43 > 0:41:46it can actually be a feature.
0:41:46 > 0:41:48I don't know. I think, maybe...
0:41:48 > 0:41:51see how much money you've got left at the end of the exercise.
0:41:51 > 0:41:55Gary has a modest budget of £10,000.
0:41:55 > 0:41:58He's given himself four to six weeks to complete the project,
0:41:58 > 0:42:03and has taken three weeks off work to get the ball rolling.
0:42:03 > 0:42:05Projects like this can be stressful,
0:42:05 > 0:42:07but after 25 years as a paramedic,
0:42:07 > 0:42:10it must be water off a duck's back for Gary.
0:42:12 > 0:42:14Is your job as a paramedic really stressful?
0:42:14 > 0:42:17Because I can imagine doing up property is going to be,
0:42:17 > 0:42:20a little bit. That's what worries me - how are you going to cope?
0:42:20 > 0:42:22It was definitely nowhere as stressful
0:42:22 > 0:42:24as waiting for the mortgage completion,
0:42:24 > 0:42:28the 28 days you had to buy, that was the most stressful, waiting for that.
0:42:28 > 0:42:30It all worked out fine...
0:42:30 > 0:42:31So, wait a minute,
0:42:31 > 0:42:35so the hammer went down and you didn't have a mortgage in place?
0:42:35 > 0:42:39- Um, I had a mortgage in principle, but the...- But when was that?
0:42:39 > 0:42:43How long before the actual auction was that mortgage in principle?
0:42:43 > 0:42:45You've got to be very careful, at the moment.
0:42:45 > 0:42:48It was well over six months ago I got that mortgage in principle.
0:42:48 > 0:42:50Things change so quickly!
0:42:50 > 0:42:55I found that out, and it did take a couple of sleepless nights
0:42:55 > 0:42:58to get things sorted, but it all worked out in the end.
0:42:58 > 0:43:00Brokers were telling me it was very tight,
0:43:00 > 0:43:02- and we didn't know we were going to make it...- Oh!
0:43:02 > 0:43:03But it all worked out.
0:43:03 > 0:43:07All right, next question. Are you confident, are you ready for this?
0:43:07 > 0:43:09Yeah, I don't...
0:43:09 > 0:43:11Hopefully, I can't go wrong
0:43:11 > 0:43:15if everything goes as it has done from the auction.
0:43:15 > 0:43:18- Um...- Come on, Gary, be a bit more confident!
0:43:18 > 0:43:19Is it going to be a good project?
0:43:19 > 0:43:22When you come back, hopefully you'll tell me it was all worthwhile.
0:43:22 > 0:43:24I'm so excited to see the end result.
0:43:24 > 0:43:26- Well done.- Thank you.- Thank you.
0:43:28 > 0:43:30I don't think anything will be as stressful for Gary
0:43:30 > 0:43:32as getting that mortgage.
0:43:32 > 0:43:36I'm sure, whatever this house throws at him, he's going to cope.
0:43:36 > 0:43:38I look forward to seeing how that third bedroom works.
0:43:38 > 0:43:41And you can see for yourself later on in the show.
0:43:45 > 0:43:49Well, they say time can be a healer, but it can also be an enemy
0:43:49 > 0:43:50if you're up against a deadline.
0:43:50 > 0:43:53What has happened to those properties?
0:43:53 > 0:43:55It's time to go back, to find out.
0:43:56 > 0:43:59We're back in Cheshire, to Willaston,
0:43:59 > 0:44:02home of the World Worm Charming Championships,
0:44:02 > 0:44:05and also home to first-time buyer Sophie.
0:44:05 > 0:44:11This three-bed semidetached house cost her £112,000 at auction.
0:44:12 > 0:44:14It's a big first house, isn't it?!
0:44:14 > 0:44:16Yeah, well...! SHE LAUGHS
0:44:16 > 0:44:19I'd like to add value, and then maybe sell it on in a few years.
0:44:19 > 0:44:22So, tell me what you're going to do to put your stamp on this place.
0:44:22 > 0:44:26I'd like to keep the living room as it is, really.
0:44:26 > 0:44:29I think, really, what we're going to do is strip it back,
0:44:29 > 0:44:32- dig the floors up, put a damp proof course in.- Right.
0:44:32 > 0:44:37Um...and while everything's stripped back, rewire.
0:44:37 > 0:44:39It needs double glazing, central heating.
0:44:39 > 0:44:42So, the whole lot, really.
0:44:43 > 0:44:45Yes, that sounds like the whole lot!
0:44:45 > 0:44:47But there was more.
0:44:47 > 0:44:50She was hoping to add value by moving the bathroom upstairs
0:44:50 > 0:44:53and making the kitchen bigger.
0:44:53 > 0:44:57She had hoped to get her first phase done within five to six months,
0:44:57 > 0:45:00so, spot on six months later, we're back.
0:45:04 > 0:45:07Initially, Sophie had no plans for an extension,
0:45:07 > 0:45:11but after a rethink, she decided to extend her kitchen space
0:45:11 > 0:45:13by knocking through to the old coal shed.
0:45:13 > 0:45:15And it looks great.
0:45:16 > 0:45:20Sophie has also extended into what was the old bathroom,
0:45:20 > 0:45:22creating yet more space for the kitchen.
0:45:34 > 0:45:36The living room has been stripped back,
0:45:36 > 0:45:39and a feature fireplace created.
0:45:43 > 0:45:46Upstairs, the work continues, with replastering
0:45:46 > 0:45:48and painting well under way.
0:45:53 > 0:45:58I think turning the third bedroom into a bathroom is a fantastic idea.
0:46:01 > 0:46:03Sophie clearly still has work to do here,
0:46:03 > 0:46:07but what she HAS done has already improved this property.
0:46:10 > 0:46:11For me, though,
0:46:11 > 0:46:15it's that kitchen extension that really has the wow factor.
0:46:18 > 0:46:20So, this is the old coal shed.
0:46:20 > 0:46:22Basically, what we've done is -
0:46:22 > 0:46:25it was already connected to the house by the roof,
0:46:25 > 0:46:30so we've knocked that through and made it into one nice, big area.
0:46:30 > 0:46:33And obviously we've got the nice patio doors, leading out.
0:46:33 > 0:46:35Hopefully, when we get some nice weather,
0:46:35 > 0:46:37we'll be able to have a barbecue.
0:46:38 > 0:46:40With the addition of skylights in the roof,
0:46:40 > 0:46:43and knocking through into the old bathroom space,
0:46:43 > 0:46:46Sophie has created a bright and spacious kitchen diner.
0:46:49 > 0:46:53She's also turned the old pantry into a downstairs cloakroom.
0:46:53 > 0:46:56So, what else has been undertaken here?
0:46:56 > 0:47:00Basically, from the start, everything was stripped back.
0:47:00 > 0:47:04The floors have been dug up, it's all been replastered.
0:47:04 > 0:47:06Completely redone, really.
0:47:06 > 0:47:08Moving the bathroom upstairs -
0:47:08 > 0:47:11I didn't really like the idea of having the bathroom downstairs.
0:47:11 > 0:47:15I know that I've lost one of the bedrooms, but I think nowadays
0:47:15 > 0:47:19in houses, bathrooms are generally upstairs, so, um...
0:47:19 > 0:47:23I wasn't too worried about compromising one of the bedrooms,
0:47:23 > 0:47:24and I'm hoping the value of the house
0:47:24 > 0:47:26hasn't changed too much with that.
0:47:26 > 0:47:29And we've also got the small toilet downstairs, anyway -
0:47:29 > 0:47:31so, yeah, the best of both worlds.
0:47:31 > 0:47:36Sophie originally had a budget of between £20,000 and £25,000.
0:47:36 > 0:47:39Has she been able to stick to that?
0:47:41 > 0:47:46I have stuck to the budget, roughly, and spent about 25,000-27,000,
0:47:46 > 0:47:50with all the flooring and everything included, so, yeah.
0:47:50 > 0:47:52Not too bad.
0:47:52 > 0:48:00The worst part has been trying to get all the tradesmen communicating!
0:48:00 > 0:48:05The plumber coming when he's supposed to, so they can plaster.
0:48:05 > 0:48:07Just them all talking to each other
0:48:07 > 0:48:09to make sure it all runs smoothly, really.
0:48:09 > 0:48:13But on the plus side, it's been nice seeing it all come together.
0:48:13 > 0:48:17It's taken Sophie six months to get to this point.
0:48:17 > 0:48:18What else is there to do,
0:48:18 > 0:48:22and how much longer does she think it will be before she can move in?
0:48:22 > 0:48:27What's left to do is to fit the rest of the bathroom upstairs,
0:48:27 > 0:48:30all the floors downstairs need to be fitted.
0:48:30 > 0:48:33I've ordered the carpet for the stairs today.
0:48:33 > 0:48:35I've got a new sofa,
0:48:35 > 0:48:38so...can't wait to see what that looks like in the room.
0:48:38 > 0:48:41At the moment, I'm planning to move in, hopefully,
0:48:41 > 0:48:42within the next couple of weeks.
0:48:42 > 0:48:45As I've chosen all the fixtures and fittings,
0:48:45 > 0:48:48the plan is to move in, really. Yeah.
0:48:48 > 0:48:49I think this is a lovely home
0:48:49 > 0:48:53that any first-time buyer would be chuffed to have.
0:48:53 > 0:48:55Good job, Sophie.
0:48:55 > 0:48:59What will two local estate agents make of this transformation?
0:48:59 > 0:49:02The current owners have done a very nice job
0:49:02 > 0:49:05with the open-plan family dining area
0:49:05 > 0:49:06and the French doors out to the garden.
0:49:06 > 0:49:08It seems to be coming along really well.
0:49:08 > 0:49:11Some great additions, really impressed with the finish.
0:49:11 > 0:49:13Certainly, in the time that we've been away, they've added
0:49:13 > 0:49:15some real character to the property,
0:49:15 > 0:49:18and it should soon make the perfect family home.
0:49:18 > 0:49:21Sophie plans to live in her first home for a while to come,
0:49:21 > 0:49:24but anyone who has done a job like this wants to know
0:49:24 > 0:49:27if they have spent their money wisely.
0:49:27 > 0:49:30She bought this house for £112,000,
0:49:30 > 0:49:34and has spent about £27,000 turning it into a lovely home.
0:49:36 > 0:49:38Sophie has sacrificed her third bedroom
0:49:38 > 0:49:41so she could get an upstairs bathroom,
0:49:41 > 0:49:44and she's worried that might impact on the value of the house.
0:49:44 > 0:49:48What do the agents think this house would fetch on the market?
0:49:48 > 0:49:52Anything like £139,000 investment?
0:49:52 > 0:49:54When the property's finally completed,
0:49:54 > 0:49:59I would expect to market this property for offers over £135,000.
0:49:59 > 0:50:01I would estimate the property to be marketed
0:50:01 > 0:50:07at the value of £135,000-145,000.
0:50:07 > 0:50:14I think 140 is sort of what we were expecting, anyway.
0:50:14 > 0:50:21Um...so we will have broke even, just about, I think.
0:50:21 > 0:50:24So, as I'm moving in anyway, I'm not too concerned.
0:50:24 > 0:50:29But hopefully, in time, the prices will go up.
0:50:29 > 0:50:31Interestingly, the estate agents
0:50:31 > 0:50:35thought the house could have achieved £150,000
0:50:35 > 0:50:37if it had been kept as a three-bed.
0:50:39 > 0:50:41It's all academic, though,
0:50:41 > 0:50:44as Sophie plans to move in and make this her home.
0:50:44 > 0:50:48How does she feel about leaving Mum and Dad's, though?
0:50:48 > 0:50:51I think it's all just become a bit more realistic, now.
0:50:51 > 0:50:52It's nearly finished,
0:50:52 > 0:50:55and I'm wondering if I've made the right choice.
0:50:55 > 0:50:58But I think, when I've moved in, I'll be quite happy.
0:51:01 > 0:51:03Now to another first-time investor
0:51:03 > 0:51:07here, in the hustle and bustle of Edmonton in North London.
0:51:07 > 0:51:10Paramedic Gary, who I met earlier in the programme.
0:51:12 > 0:51:17At £206,000, he paid 51,000 over the guide price,
0:51:17 > 0:51:21and to maximise his profit margin, Gary wasn't looking for a resale.
0:51:21 > 0:51:25He was going to hang onto it and rent it out.
0:51:25 > 0:51:28And he thought this two-bedroom house needed to become three.
0:51:31 > 0:51:33Um, I had a few ideas.
0:51:33 > 0:51:35I was thinking about extensions,
0:51:35 > 0:51:40but the cheapest idea I think I will go with is the middle bedroom,
0:51:40 > 0:51:42make that into a bathroom.
0:51:42 > 0:51:44Unfortunately there'll be no light,
0:51:44 > 0:51:47but it'll be a sealed, internal bathroom
0:51:47 > 0:51:50and have that small third bedroom.
0:51:50 > 0:51:53I totally agree this was a smart move.
0:51:53 > 0:51:58However, Gary's other plan wasn't one I thought really necessary.
0:51:58 > 0:52:00I think, to try and maximise a bit more space,
0:52:00 > 0:52:03have all the chimney breasts taken out throughout the house.
0:52:03 > 0:52:05One's already been taken out, from the kitchen.
0:52:05 > 0:52:07Oh, I don't know, that could be quite a costly exercise.
0:52:07 > 0:52:10- I mean, they're big, solid old beasts, some of those.- Yeah...
0:52:10 > 0:52:13And if you were to put a nice fireplace there,
0:52:13 > 0:52:17it can actually be a feature. I don't know. I think, maybe...
0:52:17 > 0:52:20see how much money you've got left at the end of the exercise.
0:52:22 > 0:52:27Gary planned to keep costs down by doing lots of the work himself.
0:52:27 > 0:52:29He had a four to six week timescale.
0:52:31 > 0:52:35Four months later, we're back to see how he got on.
0:52:35 > 0:52:37# Yeah
0:52:37 > 0:52:40# Gonna make it better
0:52:40 > 0:52:42# Ooh, yeah
0:52:42 > 0:52:45# Yeah
0:52:45 > 0:52:47# Gonna make it right
0:52:50 > 0:52:52# Here it is
0:52:52 > 0:52:55# There's no way to make it better
0:52:55 > 0:52:57# Gets you down
0:52:57 > 0:52:59- # It's pressure - Pressure... #
0:53:04 > 0:53:06The bathroom has been turned into an extra bedroom.
0:53:06 > 0:53:08# Yeah
0:53:08 > 0:53:10# Gonna make it better... #
0:53:11 > 0:53:16By splitting the middle bedroom, Gary has created a new bathroom.
0:53:20 > 0:53:22# Here it is
0:53:22 > 0:53:26# There's no way to make it better
0:53:26 > 0:53:28# Gets you down
0:53:28 > 0:53:31- # It's pressure - Pressure... #
0:53:31 > 0:53:33The terrace has been transformed
0:53:33 > 0:53:36from a two-bed to a three-bed property,
0:53:36 > 0:53:40but my favourite part is the surprise extension to the kitchen.
0:53:43 > 0:53:47The kitchen was a little square box kitchen. We had a door here.
0:53:47 > 0:53:52It ended around about here, so we extended it outwards,
0:53:52 > 0:53:56three metres out, under permitted development,
0:53:56 > 0:53:58and it's worked really well.
0:53:58 > 0:54:01French doors leading out to the patio area.
0:54:01 > 0:54:04We didn't plan to do an extension, but after we've done it,
0:54:04 > 0:54:07I think it's worked out really well,
0:54:07 > 0:54:09and I'm really pleased with the result.
0:54:12 > 0:54:16Not only did Gary add an extension, but he also opened up the stairs
0:54:16 > 0:54:20onto the dining room, and squeezed in a cloakroom underneath them.
0:54:21 > 0:54:23So, what else has he been up to?
0:54:25 > 0:54:28We decided to do a full renovation on the house, so...
0:54:28 > 0:54:30The first thing we done,
0:54:30 > 0:54:34we knocked down all the chimney breasts to create a bit more room.
0:54:34 > 0:54:38Upstairs, we took where the bathroom was, we made that into a bedroom,
0:54:38 > 0:54:43and now it's a three-bedroom house as opposed to a two-bedroom.
0:54:43 > 0:54:48And in the middle of two of the rooms we created a bathroom.
0:54:48 > 0:54:50It's small, but it's adequate.
0:54:51 > 0:54:55Moving the bathroom, building an extension
0:54:55 > 0:54:56and creating a third bedroom
0:54:56 > 0:55:00must have had an effect on his original budget of £10,000.
0:55:02 > 0:55:05Do you know what? The budget was... You know, it was...
0:55:05 > 0:55:10That 10,000 was just to do a quick renovation job,
0:55:10 > 0:55:13and we ended up doing a lot more.
0:55:13 > 0:55:16So, literally every wall has been replastered,
0:55:16 > 0:55:17rewired the whole house,
0:55:17 > 0:55:20plumbed the whole house, put central heating in.
0:55:20 > 0:55:24We had a bit of a delay waiting for the gas to be connected,
0:55:24 > 0:55:28but that was the only delay, really, that held the work up.
0:55:28 > 0:55:31All that extra work meant that Gary ended up
0:55:31 > 0:55:34spending between £14,000 and £15,000 on the house.
0:55:35 > 0:55:39He originally set himself a target of four to six weeks
0:55:39 > 0:55:43to complete the work, much of which he planned to do himself.
0:55:44 > 0:55:47However, he came up against an unexpected problem.
0:55:48 > 0:55:53I had an accident towards the end of the project.
0:55:53 > 0:55:54I came off a motorbike,
0:55:54 > 0:56:00so I had to ask my dad to help me a lot more with the finishing.
0:56:00 > 0:56:03Which I'm pleased he did, cos he's a perfectionist,
0:56:03 > 0:56:05and he's done a wonderful job, I think.
0:56:05 > 0:56:09So, Gary's timescale and his budget grew a bit.
0:56:09 > 0:56:14He's gone all out on this project, and he's now spent £221,000.
0:56:14 > 0:56:17But I reckon it was worth it - he's done a really nice job.
0:56:17 > 0:56:20Will two local estate agents agree?
0:56:24 > 0:56:26I think that adding a third bedroom to the property
0:56:26 > 0:56:28would enhance the property.
0:56:28 > 0:56:31Obviously, two to three bedrooms, the value of the property will go up.
0:56:31 > 0:56:34The fact that he's made two good-sized bedrooms, also,
0:56:34 > 0:56:37and not two small ones is a very good plus side to the property.
0:56:37 > 0:56:39I like the extended kitchen,
0:56:39 > 0:56:43especially with the doors opening into the garden.
0:56:43 > 0:56:46Very, very spacious, and bright colours, as well.
0:56:46 > 0:56:49But does the extra work equal extra profit?
0:56:49 > 0:56:51I would put this property on the market
0:56:51 > 0:56:55in the region of £265,000-£270,000.
0:56:55 > 0:56:57We would be able to achieve something
0:56:57 > 0:57:01between £270,000 and £275,000.
0:57:02 > 0:57:06With a top valuation of 275,000,
0:57:06 > 0:57:12Gary could expect to make a potential pre-tax profit of £54,000.
0:57:12 > 0:57:15But it's renting that Gary's interested in for now.
0:57:15 > 0:57:17So, what do the agents think he could charge?
0:57:19 > 0:57:23You would receive around £1,350 per calendar month on this property.
0:57:23 > 0:57:25We should be able to achieve something in the region
0:57:25 > 0:57:30of about £1,350-£1,400 per calendar month.
0:57:30 > 0:57:31Yeah, I'd be very happy with that.
0:57:31 > 0:57:35That's a good yield for the amount of money I've put in.
0:57:35 > 0:57:39I've already had an offer higher than that,
0:57:39 > 0:57:41but I would be happy with them sums.
0:57:41 > 0:57:44I think Gary has every right to be chuffed
0:57:44 > 0:57:46with his first investment project.
0:57:46 > 0:57:51That higher rent estimate would give him a yield of around 7.5%,
0:57:51 > 0:57:54and he has a good asset for the future.
0:57:54 > 0:58:00I've been looking at houses already, looking for the next project.
0:58:00 > 0:58:03It went so smoothly, apart from my accident,
0:58:03 > 0:58:06so I can't wait to buy another house.
0:58:08 > 0:58:10Well, that's it for now. We'll be back next time
0:58:10 > 0:58:13with more action from the auction rooms across the country.
0:58:13 > 0:58:15So make sure you're watching Homes Under The Hammer.
0:58:15 > 0:58:17- Goodbye for now.- Goodbye.