0:00:02 > 0:00:04Now, if you're looking for variety and good value,
0:00:04 > 0:00:05then the auction may be for you.
0:00:05 > 0:00:09So here are the properties that lured our buyers on today's show.
0:00:34 > 0:00:37Well, there are some really interesting tales that come
0:00:37 > 0:00:39out of the auction rooms.
0:00:39 > 0:00:42Some success stories and some real dramas!
0:00:42 > 0:00:46We've found some more interesting properties that have been sold,
0:00:46 > 0:00:49so let's see what stories they have to tell!
0:00:51 > 0:00:53I'll be in a two-bedroomed house in Stoke,
0:00:53 > 0:00:54where things seem a bit rushed!
0:00:54 > 0:00:56What's the time scale?
0:00:56 > 0:00:59- We're looking about two and a half to three weeks.- Weeks?!
0:01:00 > 0:01:03The bidders for a London property find the competition
0:01:03 > 0:01:05very close indeed...
0:01:05 > 0:01:10It's a hot row, this one! 241.
0:01:10 > 0:01:13In Cumbria, there's an open plan two-bed terrace
0:01:13 > 0:01:16and a very naughty purchaser!
0:01:16 > 0:01:20Lloyd breaking the cardinal rule of buying property at auction.
0:01:22 > 0:01:24All these properties have been sold at auction.
0:01:24 > 0:01:26We'll find out who bought them
0:01:26 > 0:01:29and what they paid for them when they went under the hammer.
0:01:29 > 0:01:31Sold.
0:01:32 > 0:01:38# Ooh, my love
0:01:40 > 0:01:43# My darling
0:01:43 > 0:01:49# I've hungered for your touch
0:01:51 > 0:01:54# A long, lonely time... #
0:01:54 > 0:01:55I'm in The Potteries,
0:01:55 > 0:02:00coal canals and clay made this the epicentre of the ceramic industry.
0:02:00 > 0:02:03And while the industry is a ghost of its former self,
0:02:03 > 0:02:06it hasn't entirely disappeared.
0:02:08 > 0:02:13Well, today I'm in Meir Hay, a suburb of Longton in Stoke-on-Trent.
0:02:13 > 0:02:17About half a mile from Longton itself, with a cluster of shops,
0:02:17 > 0:02:21it's a perfectly pleasant place to have a home.
0:02:21 > 0:02:24Good news, because one was up for auction.
0:02:24 > 0:02:27£85,000 plus was the guide price. Two-bedroomed semidetached.
0:02:27 > 0:02:30Looks pretty good from the outside. In we go.
0:02:32 > 0:02:35And so, any startling discoveries in store
0:02:35 > 0:02:39when you walk through the front door? Eh, don't think so!
0:02:39 > 0:02:43Stairs up to your bedrooms there, into the living room.
0:02:43 > 0:02:46Nice that there is an open fire but obviously you need to have
0:02:46 > 0:02:49some kind of a fireplace on the front there.
0:02:49 > 0:02:52It looks to me like somebody's done a bit of the work,
0:02:52 > 0:02:55stripping off walls, taking out the fireplace, for instance.
0:02:55 > 0:02:58It's a nice-sized space. You've got double-glazing, which is good.
0:02:58 > 0:03:00But actually the house, I think,
0:03:00 > 0:03:02gets better the further you go into it.
0:03:02 > 0:03:05Because at the back here, a good-sized kitchen.
0:03:05 > 0:03:07It's a kitchen-dining room.
0:03:07 > 0:03:11Obviously lacking a few basics like units!
0:03:11 > 0:03:14But at least, again, you don't have to struggle trying to get
0:03:14 > 0:03:17rid of the rubbish that was in here before, perhaps.
0:03:17 > 0:03:21But the best thing, for me, lovely sliding patio doors.
0:03:21 > 0:03:24Out onto, strangely enough, a patio. Brilliant!
0:03:25 > 0:03:27I'll investigate that further in a bit.
0:03:27 > 0:03:30The good news is you'll certainly be saving on skips
0:03:30 > 0:03:32and on elbow grease.
0:03:32 > 0:03:35# Something got me started... #
0:03:35 > 0:03:37But I've spotted one other feature that you might be tempted
0:03:37 > 0:03:39to remove as well.
0:03:40 > 0:03:44Nice to see a few references to the local pottery tradition.
0:03:44 > 0:03:47A nice frieze there.
0:03:47 > 0:03:49It might go, depending on your tastes.
0:03:49 > 0:03:51But upstairs here, a good-sized bathroom.
0:03:51 > 0:03:54It doesn't actually have a bath in it, which is slightly inconvenient.
0:03:54 > 0:03:57It has a loo, though, and again somebody's cleared it out,
0:03:57 > 0:03:59so you can start from scratch if you like.
0:03:59 > 0:04:03The absence of a kitchen or bathroom can make finding a mortgage tricky,
0:04:03 > 0:04:05but it's not completely impossible.
0:04:05 > 0:04:08However, that difficulty will possibly make this more
0:04:08 > 0:04:11attractive to a cash buyer.
0:04:11 > 0:04:13Two bedrooms, one at the back not so huge.
0:04:13 > 0:04:15Front bedroom, a nice size and again,
0:04:15 > 0:04:18looks like these were built-in cupboards that have been taken out.
0:04:18 > 0:04:21Somebody's halfway through installing a boiler there.
0:04:21 > 0:04:25So it's really one of those houses, lots of work needed to be done,
0:04:25 > 0:04:28but somebody's actually given you a pretty good leg up
0:04:28 > 0:04:30to get you started.
0:04:30 > 0:04:34Inheriting unfinished projects is not always straightforward.
0:04:34 > 0:04:35But the good thing is that here,
0:04:35 > 0:04:39there's no obviously dodgy work to undo or have checked.
0:04:39 > 0:04:42Though there are still some things I'd get rid of.
0:04:44 > 0:04:46# Little fluffy clouds...
0:04:46 > 0:04:48# Little fluffy clouds... #
0:04:50 > 0:04:53Plus, there's the warm welcome. Woof, woof!
0:04:53 > 0:04:55Off-street parking, and a garage.
0:04:55 > 0:04:59And the property is in a really lovely area.
0:04:59 > 0:05:04Time for me to take a closer look at what's on offer outside.
0:05:04 > 0:05:08Well, at the back of the property, a really good-sized terrace garden.
0:05:08 > 0:05:10And once again,
0:05:10 > 0:05:12somebody's gone to quite a lot of trouble to sort things out for you.
0:05:12 > 0:05:17At some stage in the past there was obviously a conifer hedge here.
0:05:17 > 0:05:19Now, those things are a real devil of a job.
0:05:19 > 0:05:21Not necessarily to chop down, that's the easy bit.
0:05:21 > 0:05:24It's getting rid of the stuff when you've chopped it down.
0:05:24 > 0:05:25But somebody's done it for you.
0:05:25 > 0:05:29Along with these various shrubs and bushes. Which is good.
0:05:29 > 0:05:32And as you work your way up towards the house,
0:05:32 > 0:05:35a few more intriguing things. What do you reckon this is?
0:05:35 > 0:05:40Looks like the sort of half-started, I don't know,
0:05:40 > 0:05:44foundations and first or second course of some kind of building.
0:05:44 > 0:05:47A summer house, maybe, a pretty elaborate shed. I don't know.
0:05:47 > 0:05:50What are you going to do with it? That's the question.
0:05:50 > 0:05:52You could, I guess, try and complete it.
0:05:52 > 0:05:54Create something here, a bit of extra space.
0:05:54 > 0:05:58Or put this back to a nice bit of garden.
0:05:58 > 0:06:00I'd probably go with the second option.
0:06:02 > 0:06:05If you decide to go green, then it would definitely be
0:06:05 > 0:06:08major skip time, as there's lots of rubble to go.
0:06:08 > 0:06:12However, this is a big outside space and on three levels,
0:06:12 > 0:06:15so I'd be looking for low-maintenance solutions,
0:06:15 > 0:06:18whether I was living here or renting it out.
0:06:21 > 0:06:23This house was essentially a shell,
0:06:23 > 0:06:28so did its guide price of £85,000 plus reflect its true value?
0:06:28 > 0:06:30What did a local estate agent think?
0:06:32 > 0:06:36Positives of this property are it's not too old.
0:06:36 > 0:06:39Built early to mid '80s.
0:06:39 > 0:06:44So from a development point of view, there's nothing too challenging here.
0:06:44 > 0:06:50It's a property that will rent very, very easily once it's modernised.
0:06:50 > 0:06:53The agent said this was a popular rental area.
0:06:53 > 0:06:56But what kind of rent could this two-bed semi achieve here?
0:06:59 > 0:07:03Once the renovation has taken place, for the rental market,
0:07:03 > 0:07:07you'd be looking at a figure of around about £500 per calendar month.
0:07:07 > 0:07:11And if we were destined for a resale?
0:07:11 > 0:07:12Once renovated,
0:07:12 > 0:07:15this property would have an asking price in the region of £100,000.
0:07:17 > 0:07:20Well, this is one of those properties that just does
0:07:20 > 0:07:23what it's supposed to, doesn't it? It's a great family home.
0:07:23 > 0:07:26So, exactly what you need, big garden, garage,
0:07:26 > 0:07:29lots of space inside. Just needs a bit of updating.
0:07:29 > 0:07:30Fantastic one to go for.
0:07:30 > 0:07:32Let's see who agreed when it went under the hammer.
0:07:36 > 0:07:40So, lot 34 in Meir Hay, Stoke-on-Trent.
0:07:40 > 0:07:4175 to start me?
0:07:44 > 0:07:4868, then. It's got to be worth that, surely. 68 bid. In the middle.
0:07:48 > 0:07:55£68,000. 70 can I say, now? 70 bid. 70. At 70,000. 72? 72.
0:07:55 > 0:08:0174? 76? 78? 79, seated at the back.
0:08:01 > 0:08:0579. 80? 500, you're saying. 79,500.
0:08:05 > 0:08:08500 to you, sir, 80.
0:08:08 > 0:08:13No? At 79,500 then, standing right. 80 anywhere else?
0:08:14 > 0:08:18At £79,500 then for the first time.
0:08:18 > 0:08:22At £79,500 for the second time.
0:08:22 > 0:08:26Third and final time at £79,500.
0:08:26 > 0:08:27Can't sell at that price.
0:08:27 > 0:08:29If the bidders would like to come and talk to us.
0:08:29 > 0:08:31The hammer didn't fall as the property failed
0:08:31 > 0:08:33to meet its reserve price.
0:08:33 > 0:08:38But the deal was struck for £79,250 after the auction.
0:08:38 > 0:08:42It was bought by Giuseppe and his wife Margaret.
0:08:42 > 0:08:45They run a recruitment company with their son, Nino.
0:08:45 > 0:08:49But they and their daughter Katrina, who is an equine vet,
0:08:49 > 0:08:52all have buy-to-let properties.
0:08:52 > 0:08:55Margaret came along with Nino to tell me more.
0:08:55 > 0:08:58- Nino and Margaret, great to meet you both.- Thank you.- Congratulations.
0:08:58 > 0:09:01- Thank you.- Tell me why you wanted to buy this place?
0:09:01 > 0:09:04Really we decided to have a change in a couple of properties that we had.
0:09:04 > 0:09:08So decided to sell a larger property that wasn't really working.
0:09:08 > 0:09:11- And swap that for two smaller ones. - OK, so you've sold a big one?- Yes.
0:09:11 > 0:09:14- And bought two little ones?- Yes. - Yes.- So, let's talk specifics, then.
0:09:14 > 0:09:17The house you had, how much was it? How much was it worth?
0:09:17 > 0:09:19- We managed to complete at 180.- 180.
0:09:19 > 0:09:21And how much rent were you getting for it?
0:09:21 > 0:09:24- You could only get about 650 a month from that.- Right.
0:09:24 > 0:09:27So with that 180, what are you in the process of buying?
0:09:27 > 0:09:32The first property, total cost has come in at about 70,000, completed.
0:09:32 > 0:09:39- Right.- And that's with a rent of 525.- Well, big difference. Striking.
0:09:39 > 0:09:42- Half the price, but only 10% less rent.- Yes.
0:09:42 > 0:09:44Just goes to show, doesn't it?
0:09:44 > 0:09:46Mmm, two for the price of one!
0:09:46 > 0:09:50It seems to have been a smart financial move in this instance.
0:09:50 > 0:09:54Spending the £180,000 they made from selling the big house
0:09:54 > 0:09:57has given them two sources of rent instead of one.
0:09:57 > 0:10:00However, two properties can mean twice the work
0:10:00 > 0:10:02and twice the maintenance costs.
0:10:02 > 0:10:05The recruitment business focuses on the education sector.
0:10:05 > 0:10:08So that means Margaret, Giuseppe
0:10:08 > 0:10:11and Nino have school holidays to develop their portfolios.
0:10:11 > 0:10:15Husband Giuseppe will be involved, but it looks like the majority
0:10:15 > 0:10:18of the work here will be down to these two.
0:10:20 > 0:10:22So tell me what you're going to do to sort it out?
0:10:22 > 0:10:24Well, you coordinate.
0:10:24 > 0:10:26I'll be coordinating, doing a fair bit of the work myself.
0:10:26 > 0:10:30- We're going to remove the fireplace, have it skimmed.- Take it away?
0:10:30 > 0:10:33- Take it away.- Really? - Just to give some more space, really.
0:10:33 > 0:10:38And just paint through, new carpets, and that's about it for in here.
0:10:38 > 0:10:39Right. Rest of the house?
0:10:39 > 0:10:42Rest of the house, obviously new kitchen,
0:10:42 > 0:10:46- new flooring, new bathroom, shower. Get rid of the Artex!- Mmm!
0:10:46 > 0:10:48And the same with the landing.
0:10:48 > 0:10:51- And outside? It's quite pleasant, isn't it?- Yes.- It is.
0:10:51 > 0:10:55At the back there'll be a gravel garden and the rest laid to lawn.
0:10:55 > 0:10:59- A lawn area.- Great. What's the budget, then?
0:10:59 > 0:11:02We're looking at round about 6,500-7,000.
0:11:02 > 0:11:04- That's factoring in you doing a lot of the work?- Yes.
0:11:04 > 0:11:06And are you going to get involved at all, Margaret?
0:11:06 > 0:11:10- Yes, I do the painting!- Oh, do you? Dab hand with the paint brush!
0:11:10 > 0:11:12- No, not really, but I do the painting!- You enjoy it?
0:11:12 > 0:11:16- And I choose the tiles.- Right. - And the kitchen and the bathroom.
0:11:16 > 0:11:19- Oh, terrific.- Yes, I do the spending!- Yes? Oh, right, OK.
0:11:19 > 0:11:21No, important job! What's the timescale?
0:11:21 > 0:11:25- We're looking about two and a half to three weeks.- Weeks?!- Yes.
0:11:25 > 0:11:29We have a tenant that's interested already.
0:11:29 > 0:11:31- And it's just a matter of letting it when we're done.- Wow!
0:11:31 > 0:11:33- So that's a result, then.- Yes.- Yes.
0:11:33 > 0:11:35- The money can be pouring in pretty quick!- Yes.
0:11:35 > 0:11:38- Well, listen, congratulations. - Thank you.- Good luck with it.
0:11:38 > 0:11:42- Thanks very much.- And look forward to seeing how you get on. - Thank you very much.
0:11:42 > 0:11:46So, Nino and Margaret and their family making the, I think, very
0:11:46 > 0:11:50sensible decision to sell one house and buy two others with the profit.
0:11:50 > 0:11:53This is one of them, it's going to do very well for them.
0:11:53 > 0:11:55Perfect, they've already got a tenant lined up.
0:11:55 > 0:12:00All they've got to do now is sort it out in a fairly frantic timescale.
0:12:00 > 0:12:03How will they get on? You can find out later in the show.
0:12:06 > 0:12:08And from Stoke-on-Trent
0:12:08 > 0:12:12to Catford in the Southeast Lewisham Borough of London.
0:12:12 > 0:12:15In its time, the area has been home to comedians Ben Elton
0:12:15 > 0:12:19and Spike Milligan and the aptly-named musician Cat Stevens!
0:12:19 > 0:12:21But they're not the only ones
0:12:21 > 0:12:23who thought this was a good place to settle.
0:12:25 > 0:12:29This part of Catford is known as the Corbett housing estate.
0:12:29 > 0:12:33It was built by Quakers in the 1900s and was developed to house
0:12:33 > 0:12:36only respectable families.
0:12:36 > 0:12:39So it was originally designed with plenty of places of worship,
0:12:39 > 0:12:42but not a single pub.
0:12:42 > 0:12:46Let's hope the house I'm here to see is suitably honest and worthy!
0:12:48 > 0:12:50The estate was laid out in a rigid grid pattern.
0:12:50 > 0:12:54And is still very popular with families today.
0:12:54 > 0:12:55So, here's the property.
0:12:55 > 0:12:59It's a three-bedroom Victorian terrace which had a guide price
0:12:59 > 0:13:02at auction of £185,000 plus.
0:13:02 > 0:13:06Now, my first impressions are I like that bay window and the fact
0:13:06 > 0:13:10that it's set back from the road with a good front garden here.
0:13:10 > 0:13:14So, so far it's all looking pretty decent and upstanding.
0:13:14 > 0:13:17I think the Quakers would approve.
0:13:22 > 0:13:26I can see straightaway this house needs a lot of work.
0:13:26 > 0:13:30It is dated, you've got bare floorboards.
0:13:30 > 0:13:32A wonky radiator here, oh.
0:13:32 > 0:13:36But there are also some nice period features in here which makes me
0:13:36 > 0:13:37smile, of course.
0:13:37 > 0:13:41The front reception here has got a lovely original fireplace.
0:13:41 > 0:13:45You've got a very small kitchen over here. Bit of a cupboard in there.
0:13:45 > 0:13:48You will definitely have to change that because it doesn't work.
0:13:48 > 0:13:53And then right at the back this huge extended living room
0:13:53 > 0:13:56and another period fireplace which is fabulous.
0:13:56 > 0:14:00But I'm spotting missing floorboards, there's signs of damp.
0:14:00 > 0:14:02Rot by the looks of it.
0:14:02 > 0:14:05I'm not even sure the floor over there is safe to walk on.
0:14:05 > 0:14:07It feels a bit spongy.
0:14:07 > 0:14:10This is really where the refurb costs could start to mount up.
0:14:10 > 0:14:12MUSIC: "If I Had A Million Dollars" by Barenaked Ladies
0:14:12 > 0:14:14# If I had a million dollars
0:14:14 > 0:14:17# If I had a million dollars
0:14:17 > 0:14:19# Well, I'd buy you a house
0:14:19 > 0:14:23# I would buy you a house. #
0:14:23 > 0:14:27OK, maybe not as much as 1 million but it would be easy to spend
0:14:27 > 0:14:30a lot of money here, unless you're careful.
0:14:30 > 0:14:32I do think a large kitchen is essential
0:14:32 > 0:14:35so moving it into here and using the old one as a utility room
0:14:35 > 0:14:39would be a much more modern way of working the space that you have.
0:14:41 > 0:14:45Outside, the garden is messy and overgrown but cut it back
0:14:45 > 0:14:48and tidy it up and it's a decent size.
0:14:48 > 0:14:50But what does upstairs have to offer?
0:14:53 > 0:14:57Upstairs we've got three bedrooms. A very small single bedroom there.
0:14:57 > 0:15:01There's a double there, another single through there.
0:15:01 > 0:15:04But this bathroom, it certainly needs replacing
0:15:04 > 0:15:07but compared to the bedrooms this is quite large.
0:15:07 > 0:15:11But this here is a stud wall so you could think about taking this out
0:15:11 > 0:15:16and completely rejigging the space up here to make it work for you.
0:15:18 > 0:15:22But, personally, I quite like a large, luxurious bathroom.
0:15:23 > 0:15:26What do you do in the bath?
0:15:27 > 0:15:30At the moment it's not really a setting for those scented
0:15:30 > 0:15:32bubbles and fluffy towels.
0:15:32 > 0:15:35Nice tiles and a new bathroom suite are a must.
0:15:37 > 0:15:39You can add to that the list of things that need doing in this
0:15:39 > 0:15:42house which so far consists of clearing the garden,
0:15:42 > 0:15:46sorting the electrics, fixing the damp, mending the floors,
0:15:46 > 0:15:49installing a heating system and moving the kitchen.
0:15:51 > 0:15:55The house came guided at 185,000.
0:15:55 > 0:16:01So, we invited a local estate to cast his eye and ask his opinion.
0:16:01 > 0:16:04Firstly, does he agree with me about switching the kitchen?
0:16:06 > 0:16:08The current property is already extended
0:16:08 > 0:16:12and in this area where we're standing at the moment would make a fantastic
0:16:12 > 0:16:15kitchen/diner which is very popular with buyers' at the moment.
0:16:15 > 0:16:18So that's what I would personally recommend would add to the
0:16:18 > 0:16:20saleability of the property.
0:16:21 > 0:16:24So, we're agreed on that kitchen move.
0:16:24 > 0:16:27Now, what does the agent think this house is worth on the market
0:16:27 > 0:16:29if that lengthy list of fixes were done?
0:16:31 > 0:16:34The property market is extremely buoyant and is rising.
0:16:34 > 0:16:38We would estimate at this current time £300-320,000.
0:16:40 > 0:16:43And if it were to be rented, post renovation, of course?
0:16:43 > 0:16:46How much would he suggest it would go for per calendar month?
0:16:47 > 0:16:50The type of rental you should be expecting to achieve
0:16:50 > 0:16:57on a property of this size, in good standard, would be £1,500-1,600.
0:16:58 > 0:17:01This Catford house certainly has a few problems.
0:17:01 > 0:17:03The floorboards are rotten and there's damp
0:17:03 > 0:17:07but I think it's got great potential.
0:17:07 > 0:17:09Who was brave enough to take on this terrace?
0:17:09 > 0:17:12Let's find out who bid for this one at auction.
0:17:15 > 0:17:19To Catford now. Lot 33. Three-bed end-of-terrace house.
0:17:19 > 0:17:20Start around 180.
0:17:22 > 0:17:27Right, 180. Sorry. 185 with you. 190?
0:17:27 > 0:17:30195, sir? 200?
0:17:32 > 0:17:36With you 200. New spot, 200. 205.
0:17:36 > 0:17:40That guide price of 185,000 was quickly forgotten
0:17:40 > 0:17:44and after bidding from all around the room the battle for this
0:17:44 > 0:17:49property was fought out between three bidders in the same row.
0:17:49 > 0:17:53We rejoin at a bid of 241,000.
0:17:53 > 0:17:55It's a hot row, this one.
0:17:55 > 0:17:58241? 242?
0:17:58 > 0:18:04243? 244? 245? 246?
0:18:06 > 0:18:11247? 248? 249?
0:18:11 > 0:18:17No, 248. Green shirt. First time, second time, third and last time.
0:18:17 > 0:18:18Are you all done?
0:18:19 > 0:18:21Sold 248. Well done, green shirt.
0:18:22 > 0:18:27Green shirt or, as he's usually known, Dennis, was the final bidder.
0:18:27 > 0:18:30Paying £248,000 for the property.
0:18:30 > 0:18:34A substantial 63 grand over the guide price.
0:18:35 > 0:18:39Dennis is originally from Canada but has lived in the UK for the past
0:18:39 > 0:18:4312 years and this Catford end-of- terrace will be his fourth project.
0:18:43 > 0:18:45Although it's a far cry from what he's done before.
0:18:45 > 0:18:48MUSIC: "Canada" by Pilot
0:18:48 > 0:18:52# Canada, you got an open door
0:18:52 > 0:18:59# You got so many things I swear I never saw them before. #
0:18:59 > 0:19:01Dennis, lovely to meet you today.
0:19:01 > 0:19:04Tell me what you're going to do with this house and why you wanted to buy it.
0:19:04 > 0:19:07This is the first property I've ever bought at auction.
0:19:07 > 0:19:10And funnily enough all my previous ones were new builds.
0:19:10 > 0:19:13Now, I'm going to have to stop you there because this is funny for me.
0:19:13 > 0:19:16Most people start off with a little refurbishment like this
0:19:16 > 0:19:19and they move on to a new build.
0:19:19 > 0:19:22Well, what attracted me
0:19:22 > 0:19:25to do a refurbishment is with a new build typically
0:19:25 > 0:19:28you are looking at a year to 16 months turn around time.
0:19:28 > 0:19:31By the time you've got your financing in place, by the time you've
0:19:31 > 0:19:35sorted out the planning... I'm an NHBC registered builder
0:19:35 > 0:19:38but you still have to get all the warranties whereas with
0:19:38 > 0:19:41a little refurbishment like this it was a way to keep my crew busy.
0:19:41 > 0:19:44I have really good people and I didn't want to lose them.
0:19:44 > 0:19:45And I thought, "You know what,
0:19:45 > 0:19:48"I should be able to turn this around in three to four months."
0:19:48 > 0:19:51Excellent, so you've got a fantastic team on stand-by.
0:19:51 > 0:19:54Yeah, I like to use the same people over and over again
0:19:54 > 0:19:59because we know how we work together. You can trust them.
0:19:59 > 0:20:01I know that pricing wise it will be right.
0:20:01 > 0:20:05It's just easier to work with people you've worked with before.
0:20:05 > 0:20:08This house has got the bones of being something beautiful.
0:20:08 > 0:20:12It's traditional, it's charming. But it does need a lot of work.
0:20:12 > 0:20:14And I know a lot of people would have been
0:20:14 > 0:20:15put off by this on auction day.
0:20:15 > 0:20:18So, how are you going to change it?
0:20:18 > 0:20:21Downstairs, more or less, the layout will stay the same.
0:20:21 > 0:20:23The only thing we are going to do is for some reason
0:20:23 > 0:20:28they put the kitchen in what should be a bathroom.
0:20:28 > 0:20:31Which doesn't make any sense to me. It's ridiculous.
0:20:31 > 0:20:35- Why is the kitchen in the cupboard? - Don't know.
0:20:35 > 0:20:41But the kitchen needs to go into the lounge off the wonderful back
0:20:41 > 0:20:46garden with a deck, with a big folding bi-fold doors onto that deck.
0:20:46 > 0:20:48How about knocking through this wall or do you
0:20:48 > 0:20:49think that will be too big?
0:20:49 > 0:20:53I think that there is value in keeping this as a separate
0:20:53 > 0:20:59reception or possibly a bedroom because a lot of people have
0:20:59 > 0:21:02ageing relatives and not everyone wants to go upstairs.
0:21:02 > 0:21:08So by turning that tiny kitchen into a WC and shower room,
0:21:08 > 0:21:11keeping this, it gives the potential buyer or renter
0:21:11 > 0:21:15the flexibility of using this as an extra bedroom.
0:21:15 > 0:21:18And they've still got a massive private lounge,
0:21:18 > 0:21:20kitchen/diner in the back.
0:21:20 > 0:21:23Are you going to extend any more or leave the footprint as it is?
0:21:23 > 0:21:24That's a good question.
0:21:24 > 0:21:29There is the possibility of doing a first floor small extension to
0:21:29 > 0:21:31extend one of the bedrooms.
0:21:31 > 0:21:34Now, that is a great idea.
0:21:34 > 0:21:37And I'm liking the fact that I do feel the upstairs is
0:21:37 > 0:21:39a little on the small side.
0:21:39 > 0:21:44- But do you think that is money well spent?- Here's the thing.
0:21:44 > 0:21:45I'm from Canada originally
0:21:45 > 0:21:47and when I first came over to this country
0:21:47 > 0:21:52I was amazed how people in the UK based the value of houses
0:21:52 > 0:21:57on the number of bedrooms but not necessarily the size of the bedrooms.
0:21:57 > 0:21:58Someone will say it's a five-bedroom house
0:21:58 > 0:22:02but there's barely enough room to swing a cat in some of these rooms.
0:22:04 > 0:22:08And keeping room sizes front of mind with or without the extension
0:22:08 > 0:22:11Dennis is planning on moving the bathroom to the small single
0:22:11 > 0:22:14bedroom and making the current bedroom into a larger
0:22:14 > 0:22:17bedroom by stealing some space from the landing.
0:22:17 > 0:22:20He's already had an architect draw up plans.
0:22:20 > 0:22:25One set without the upstairs extension and one set with it.
0:22:25 > 0:22:27So, how much does he think his budget will be?
0:22:29 > 0:22:34£25,000 which is going to be tight but I think we can do it.
0:22:34 > 0:22:39And with the extension, if we do that, another 7-8.
0:22:39 > 0:22:42I was just afraid with my first refurbishment that
0:22:42 > 0:22:46I may overspend because most of my other projects have
0:22:46 > 0:22:50been in more expensive areas of London
0:22:50 > 0:22:54so I tend to do a really high quality finish and spend lots of money.
0:22:54 > 0:22:56So the challenge for me
0:22:56 > 0:23:01with this one is to keep within what I think is a very reasonable budget.
0:23:01 > 0:23:06But don't go over the top because I don't think the area can support it.
0:23:06 > 0:23:08You call yourself the new build guy.
0:23:08 > 0:23:10You're a bit scared of the refurb
0:23:10 > 0:23:13so I'm quite looking forward to seeing what you do here.
0:23:13 > 0:23:15- Are you a little nervous? - Always nervous.
0:23:15 > 0:23:17Whenever you do these things it's a risk.
0:23:17 > 0:23:19You never know how it's going to turn out.
0:23:19 > 0:23:21But you just do your best
0:23:21 > 0:23:24and at the end of the day there is an element of luck.
0:23:24 > 0:23:26But you do have a passion and that shows.
0:23:26 > 0:23:29I love doing this because it's creative.
0:23:29 > 0:23:33It's exciting, it's fun and also I think I'm doing something worthwhile.
0:23:33 > 0:23:35Someone's going to live here,
0:23:35 > 0:23:37someone's going to have a family here.
0:23:37 > 0:23:40And I hope I'm going to build something apart from making me some
0:23:40 > 0:23:43money, hopefully, is going to give someone a really nice place to live.
0:23:43 > 0:23:47- Good luck with this.- Thank you. - Can't wait to see what you've done.
0:23:47 > 0:23:48- Thank you.- Thank you.
0:23:50 > 0:23:52So this three-bedroom house is Dennis's first
0:23:52 > 0:23:57experience of renovation rather than building from scratch.
0:23:57 > 0:24:01Once this property is finished what will he end up preferring, I wonder?
0:24:01 > 0:24:04Building from new or making good the old?
0:24:04 > 0:24:08And will he end up adding the first floor extension or not?
0:24:09 > 0:24:12You can find out how he gets on later on in the programme.
0:24:14 > 0:24:18Coming up, in Cumbria will it pay to take a risk with this two-bed
0:24:18 > 0:24:19property?
0:24:20 > 0:24:23- You hadn't seen it? - No. I bought it blind.
0:24:25 > 0:24:28And in Catford Dennis has transformed his garden
0:24:28 > 0:24:29from this to this.
0:24:29 > 0:24:32So just imagine what he's done to the house.
0:24:37 > 0:24:41But first we're back in Meir Hay. A pleasant suburb of Stoke-on-Trent.
0:24:42 > 0:24:46This two-bedroom semidetached property was bought for
0:24:46 > 0:24:50£79,250 as a family project by
0:24:50 > 0:24:52Giuseppe, Margaret and their son Nino.
0:24:53 > 0:24:55Margaret came along with Nino to tell us
0:24:55 > 0:24:59about their savvy move in selling a larger property to fund
0:24:59 > 0:25:02the purchase of two smaller ones for a bigger yield.
0:25:02 > 0:25:05And while we were talking scale there was something else that
0:25:05 > 0:25:06was minuscule.
0:25:07 > 0:25:09What's the timescale?
0:25:09 > 0:25:12We're looking at about two and a half to three weeks.
0:25:12 > 0:25:16- Weeks?- Yes, we have a tenant that is interested already.
0:25:16 > 0:25:20- It's just a matter of letting the work be done.- That's a result then.
0:25:20 > 0:25:22- The money can be pouring in pretty quick.- Yes.
0:25:24 > 0:25:26And as the previous owner had already done
0:25:26 > 0:25:29a lot of the stripping out, they did have a head start.
0:25:29 > 0:25:31But still, two and a half to three weeks?
0:25:32 > 0:25:35Well, this lot meant business because three weeks
0:25:35 > 0:25:37later on the dot we're back.
0:26:17 > 0:26:19A vast improvement for sure.
0:26:19 > 0:26:23And other than a few bits and pieces left to finish off outside,
0:26:23 > 0:26:26Nino has met the tight deadline.
0:26:26 > 0:26:31In fact, from when they started, the job has taken two weeks.
0:26:31 > 0:26:34It just goes to show what a bit of hard work and determination
0:26:34 > 0:26:38and the pressure of a tenant waiting in the wings can do.
0:26:38 > 0:26:41However, just because it's been done in double quick time doesn't
0:26:41 > 0:26:43mean it's been problem free.
0:26:45 > 0:26:48When we first bought the house we had a little issue with
0:26:48 > 0:26:49the dividing fence.
0:26:49 > 0:26:53We weren't sure who it belonged to or who was responsible for it.
0:26:53 > 0:26:57After a chat with the friendly neighbours we decided we'd go 50/50
0:26:57 > 0:27:01and we've renewed the whole length and it really smartened the garden up now.
0:27:01 > 0:27:04And it's not only been reaching a fair compromise over
0:27:04 > 0:27:07the fence that has kept neighbourly relations in good health.
0:27:09 > 0:27:12When developing property it's always good to be able to get on with
0:27:12 > 0:27:13the neighbours.
0:27:13 > 0:27:16A bit of respect for them in terms of making sure that...
0:27:16 > 0:27:18making noise, putting the kitchen in, bashing the tiles off.
0:27:18 > 0:27:21We've tried to do it when they've been at work.
0:27:21 > 0:27:23Worked around their shifts
0:27:23 > 0:27:27and it's always good to get on with your neighbours.
0:27:27 > 0:27:31# With fiends and neighbours
0:27:31 > 0:27:35# You're the richest man in town. #
0:27:35 > 0:27:38Well, they do say everybody needs good ones.
0:27:38 > 0:27:41Something which wasn't so good here was the garden.
0:27:41 > 0:27:45So, how did Nino make it more appealing?
0:27:45 > 0:27:47Garden was originally on three levels in the back.
0:27:47 > 0:27:52It had been a bit of a mix of uses so what I've decided to do is
0:27:52 > 0:27:55turf the bottom area, make a nice little garden area.
0:27:55 > 0:27:57Turn the middle into a gravel garden
0:27:57 > 0:28:01and we're going to clean up the slabs that are here
0:28:01 > 0:28:06and finish painting the fencing that we've put up and finish it off.
0:28:06 > 0:28:08Although they made it much more user friendly,
0:28:08 > 0:28:12costs were kept down by keeping the layout the same.
0:28:12 > 0:28:14Something that certainly didn't stay
0:28:14 > 0:28:18though was that striking hallway decoration.
0:28:21 > 0:28:23What happened to that? That's an interesting story.
0:28:23 > 0:28:25We did have to take that off.
0:28:25 > 0:28:28We didn't think it would be to everybody's taste as a rental property.
0:28:28 > 0:28:30It turned out that the lady that lived here had
0:28:30 > 0:28:31worked for Wedgewood in the past.
0:28:31 > 0:28:36- Hence the inspired colours.- The frieze was definitely a statement.
0:28:36 > 0:28:38Was Nino able to rescue it for posterity?
0:28:38 > 0:28:41Unfortunately, it was chipped off with a chisel.
0:28:42 > 0:28:43Shame.
0:28:43 > 0:28:47Nino has impressed me by doing a lot of the work here himself,
0:28:47 > 0:28:48along with the rest of the family.
0:28:48 > 0:28:52However, a plasterer did the whole house including the ceilings.
0:28:52 > 0:28:54Thankfully, no more Artex.
0:28:56 > 0:28:58And a gas engineer checked the safety of the heating
0:28:58 > 0:29:01and an electrician came to upgrade the electrics.
0:29:01 > 0:29:04So there really has been a lot covered in a short space of time.
0:29:07 > 0:29:12The budget was going to be £6,500 stretching to £7,000
0:29:12 > 0:29:14if absolutely necessary.
0:29:14 > 0:29:16How did it turn out in the end?
0:29:17 > 0:29:19We've done pretty well with the budget.
0:29:19 > 0:29:22Considering we've spent a little bit more than planned on the garden.
0:29:22 > 0:29:27We've come in at 6,800, about £50 or thereabouts.
0:29:27 > 0:29:31Adding to the purchase price of £79,250,
0:29:31 > 0:29:35that brings the total spend here to £86,100.
0:29:38 > 0:29:42Time to get two local property experts round to the house
0:29:42 > 0:29:45to see if they're as impressed as I am.
0:29:45 > 0:29:48It is clear the owners of this property have redecorated,
0:29:48 > 0:29:50recarpeted the property and changed the kitchen
0:29:50 > 0:29:53and bathroom. The most appealing features of this property is
0:29:53 > 0:29:56it has a single garage and an amply sized plot.
0:29:56 > 0:29:58I feel the refurbishment has gone well.
0:29:58 > 0:30:01The bathroom and the kitchen have been particularly pleasing.
0:30:01 > 0:30:05And I think this would be a big bonus for the property.
0:30:05 > 0:30:08'So, they can see this place appealing, but for what price?'
0:30:10 > 0:30:13'As Nino and his family bought this as a rental investment,
0:30:13 > 0:30:16'let's hear those figures first.'
0:30:16 > 0:30:20The rental price for this property is £495 per calendar month.
0:30:20 > 0:30:23If I was looking to rent the property, I'd expect to achieve
0:30:23 > 0:30:26in the region of £500 per calendar month.
0:30:26 > 0:30:29Erm, not bad, pretty much where we expected it to be,
0:30:29 > 0:30:32although we have managed to achieve slightly higher rental than that.
0:30:32 > 0:30:36'In fact, their new tenant, who was planning to move in
0:30:36 > 0:30:41'the following weekend, will be paying £525 per calendar month.
0:30:41 > 0:30:44'That's a yield of just over 7%.
0:30:44 > 0:30:46'However, out of curiosity,
0:30:46 > 0:30:49'if the property were to go on the sales market,
0:30:49 > 0:30:52'would it see a rosy return?'
0:30:52 > 0:30:55I would put this property on the market for sale at £95,000.
0:30:55 > 0:30:57If I was marketing the property,
0:30:57 > 0:31:00I'd be putting the property on the market at £100,000.
0:31:00 > 0:31:02We think that's a fair price.
0:31:02 > 0:31:05Looking at what's on the market in the area,
0:31:05 > 0:31:09that seems to be the going rate for this size of property.
0:31:09 > 0:31:15'The top valuation of 100,000 would give a profit of around £14,000,
0:31:15 > 0:31:17'minus the usual taxes and expenses.
0:31:17 > 0:31:20'Not a bad result in just three weeks.
0:31:20 > 0:31:23'So, with all the selling, buying and renovating,
0:31:23 > 0:31:26'is it time for this family to take a break?'
0:31:28 > 0:31:31Yes! We've had a busy couple of years,
0:31:31 > 0:31:34we've been renovating all that property portfolio,
0:31:34 > 0:31:36changing things about,
0:31:36 > 0:31:40so now it's time to have a bit of time off and relax.
0:31:44 > 0:31:49'So, while Nino takes a break, I'm swanning off to our next location.'
0:31:49 > 0:31:52I'm in Workington on the Cumbrian coast.
0:31:52 > 0:31:57Back in 2009, this was the scene of some absolutely terrible flooding,
0:31:57 > 0:32:01when the Derwent and the Cocker burst their banks in Cockermouth,
0:32:01 > 0:32:04upstream, devastating that town
0:32:04 > 0:32:08and destroying the bridge that linked north and south Workington.
0:32:08 > 0:32:10Well, the bridge has been rebuilt
0:32:10 > 0:32:13and Workington is rebuilding itself, too.
0:32:24 > 0:32:30'With rebuilding comes regeneration and investment.'
0:32:33 > 0:32:37I'm in a very popular residential part of town
0:32:37 > 0:32:40to see the kind of property that's...
0:32:40 > 0:32:43oh, quite ubiquitous in this area.
0:32:43 > 0:32:46It's a two-bedroomed mid-terrace.
0:32:46 > 0:32:49At a guide price of £50-£60,000, though...
0:32:49 > 0:32:52That's quite a big difference, isn't it, 50, 60?
0:32:52 > 0:32:55Is it going to be good, bad...or ugly?
0:32:56 > 0:33:00Well, fingers crossed for the first. And a quite good start, actually.
0:33:00 > 0:33:03You've got this little entrance area, keeps the draughts out,
0:33:03 > 0:33:07and, the moment you walk in, a really nice feel, open space,
0:33:07 > 0:33:10partly due to the sort of open plan design.
0:33:10 > 0:33:12You've got double glazing, which is good,
0:33:12 > 0:33:14a gas fire which looks like it's seen better days
0:33:14 > 0:33:16so you definitely want to have that checked out.
0:33:16 > 0:33:20Into the sort of rear living room area, which is a nice space,
0:33:20 > 0:33:23lots and lots of light, that really strikes you about this house.
0:33:23 > 0:33:28A few potential issues with, eurgh, damp there, which is...
0:33:28 > 0:33:31Hmm, yeah, that definitely needs to be looked at,
0:33:31 > 0:33:33possibly something going wrong with the sill there
0:33:33 > 0:33:35or check out the guttering.
0:33:35 > 0:33:37A few other signs of something similar.
0:33:37 > 0:33:40That's probably more likely to be the fact that the house
0:33:40 > 0:33:43hasn't been lived in for a little while, perhaps.
0:33:43 > 0:33:45But then a nice surprise through into the kitchen,
0:33:45 > 0:33:48a fairly classic design, galley-style, not in bad condition,
0:33:48 > 0:33:51and then very classic design through to the very rear
0:33:51 > 0:33:55of the property, where your bathroom and loo are. It's not ideal,
0:33:55 > 0:33:57but it's kind of what you come to expect from this sort of house.
0:33:57 > 0:34:00So, is it worth the effort of moving it? Probably not.
0:34:00 > 0:34:03All in all, definitely erring towards the good.
0:34:04 > 0:34:08'Yes, there's nothing too bad or too ugly here, either.
0:34:08 > 0:34:10'It could do with a bit of smartening up
0:34:10 > 0:34:12'and definitely need some cleaning.'
0:34:13 > 0:34:16'It's a shame the bathroom's downstairs,
0:34:16 > 0:34:19'but that's pretty standard around here.
0:34:19 > 0:34:22'Sort out the damp, redecorate and re-carpet, perhaps,
0:34:22 > 0:34:25'and this house could be good to go.'
0:34:26 > 0:34:29So, let's come back to these open-plan stairs.
0:34:29 > 0:34:31I think they're a really nice feature of the property
0:34:31 > 0:34:35and they give a really lovely open-plan feeling
0:34:35 > 0:34:37to this particular room.
0:34:37 > 0:34:41They're already here, so issues about building regulations...
0:34:41 > 0:34:44strictly speaking, you don't have to worry about too much.
0:34:44 > 0:34:48However, I think, from a safety point of view, you really need to address the problems here
0:34:48 > 0:34:51because any open stars like this are a potential danger,
0:34:51 > 0:34:53because children could fall through that gap.
0:34:53 > 0:34:55The current regulations say that the gap distance there
0:34:55 > 0:34:58needs to be less than four inches, or you need a bar across.
0:34:58 > 0:35:01Similarly on these edge bits here,
0:35:01 > 0:35:03to stop children falling through here.
0:35:03 > 0:35:06If you've got kids of your own, if you were moving in, that's something you'd want to do.
0:35:06 > 0:35:09But if you're looking at renting this place out,
0:35:09 > 0:35:11as a landlord, you have an obligation
0:35:11 > 0:35:14to make sure the property is fit for purpose and safe.
0:35:14 > 0:35:17So that's something I would do as a matter of course.
0:35:20 > 0:35:22Well, up here the good news continues.
0:35:22 > 0:35:24Two bedrooms, one at the front slightly smaller
0:35:24 > 0:35:28than the one at the back, which is a really nice size.
0:35:28 > 0:35:31From the front, you wouldn't guess how lovely and spacious
0:35:31 > 0:35:33this property is once you come inside.
0:35:33 > 0:35:36From here, though, as I always say, when you're up here
0:35:36 > 0:35:40make the most of the views out onto other parts of the property.
0:35:40 > 0:35:42Look at roofs, guttering, etc.
0:35:42 > 0:35:45In this case, a flat roof over the top of the kitchen and loo there,
0:35:45 > 0:35:49doesn't look to be in too bad condition. It really is...
0:35:49 > 0:35:51a great house.
0:35:52 > 0:35:55'It's a shame there isn't much outside space,
0:35:55 > 0:35:58'but at least there is enough room to put washing out
0:35:58 > 0:36:00'and somewhere to sit.
0:36:00 > 0:36:02'As a two-bedroomed house,
0:36:02 > 0:36:05'this is less likely to appeal to a larger family,
0:36:05 > 0:36:09'and is probably more suited to couples and first-time buyers,
0:36:09 > 0:36:13'a market, generally, where gardens are not a priority.
0:36:13 > 0:36:18'That guide price of between 50 and 60,000 makes it seem affordable.'
0:36:20 > 0:36:24'So, what does the auctioneer who sold it think of the house?'
0:36:26 > 0:36:31It's obviously had some sort of modernisation at some point in time.
0:36:31 > 0:36:34Maybe upgrade the kitchen, upgrade the bathroom, maybe.
0:36:34 > 0:36:36Not too much work to be done.
0:36:36 > 0:36:39Certainly leave the footprint as it is.
0:36:40 > 0:36:42'Yep, all pretty straightforward,
0:36:42 > 0:36:45'and if all those bits and pieces were carried out,
0:36:45 > 0:36:47'would a buyer see a potential return
0:36:47 > 0:36:50'on the resale or rental markets?'
0:36:50 > 0:36:52'Yeah, if it was done up to a reasonable standard,'
0:36:52 > 0:36:56I think you'd achieve a figure around £75,000.
0:36:56 > 0:36:58'If it was exposed to the rental market,
0:36:58 > 0:37:00'I think you'd achieve a figure'
0:37:00 > 0:37:03in the region of £400 per calendar month.
0:37:03 > 0:37:06'So, potentially a decent uplift on resale,
0:37:06 > 0:37:10'and a very healthy rental yield.
0:37:10 > 0:37:13'That all sounds very promising to me.'
0:37:14 > 0:37:17Well, a bit of work to be done to sort this one out,
0:37:17 > 0:37:19but, intrinsically, a pleasant little house
0:37:19 > 0:37:22in a good location close to Workington town centre.
0:37:22 > 0:37:24Good one to go for.
0:37:24 > 0:37:26Let's see who agreed when it went under the hammer.
0:37:30 > 0:37:32Lot 13, lucky for some.
0:37:32 > 0:37:34Two-bedroom mid-terrace property,
0:37:34 > 0:37:37benefiting from gas central heating, double glazing.
0:37:37 > 0:37:40Accommodation briefly comprises entrance, lounge, dining room,
0:37:40 > 0:37:43kitchen and bathroom to the ground floor.
0:37:43 > 0:37:44Two bedrooms on the first floor.
0:37:44 > 0:37:47Externally, there's a yard to the rear of the property.
0:37:47 > 0:37:49Ideal investment.
0:37:49 > 0:37:5145?
0:37:51 > 0:37:5240, then?
0:37:52 > 0:37:5640 here. 40 I'm bid. In ones.
0:37:56 > 0:37:59At £40,000. 41. 41 I've got.
0:37:59 > 0:38:0342. 43. 44.
0:38:03 > 0:38:06Five? Thinking about it. With you at £44,000.
0:38:06 > 0:38:09Back in at 45. 46.
0:38:09 > 0:38:1247, 48, 49,
0:38:12 > 0:38:1450. 50, I've got. 51.
0:38:14 > 0:38:17Back in at 51. 52, 53,
0:38:17 > 0:38:1954...
0:38:19 > 0:38:2254, I've got. 55.
0:38:22 > 0:38:25Shake of the head. With you at £54,000.
0:38:25 > 0:38:28At £54,000, then.
0:38:28 > 0:38:30Are you done? Are you sure?
0:38:32 > 0:38:34I can't sell it at that.
0:38:35 > 0:38:37Come and see us. We know who we are.
0:38:39 > 0:38:42The two-bed house failed to reach its reserve price,
0:38:42 > 0:38:45but after the auction, Lloyd, who bid £54,000,
0:38:45 > 0:38:49was able to buy it for exactly the same sum.
0:38:53 > 0:38:55Lloyd lives in nearby Cockermouth,
0:38:55 > 0:38:58and he runs a light haulage and courier company.
0:38:58 > 0:39:00- Lloyd, good to meet you. - Hi.- Congratulations.
0:39:00 > 0:39:03- Yep.- Tell me why you wanted to buy this place.
0:39:03 > 0:39:06When I went to the auction, I was going for another property.
0:39:06 > 0:39:07I didn't even look at this one.
0:39:07 > 0:39:09The other one was a three-bed with a garden.
0:39:09 > 0:39:13Lost it - it went £20,000 over what I was willing to pay for it.
0:39:13 > 0:39:16Erm, this one came along, and I know the area,
0:39:16 > 0:39:18because I was brought up the next street along.
0:39:18 > 0:39:21And I know they're good little properties and good investments.
0:39:21 > 0:39:24- I hadn't seen it or anything. - You hadn't seen it?
0:39:24 > 0:39:26No. I bought it blind.
0:39:26 > 0:39:29- Well, I think you might have lucked out here.- Yeah.
0:39:29 > 0:39:31When you walked through the door, what did you think?
0:39:31 > 0:39:34I was very pleasantly surprised. The kitchen's great,
0:39:34 > 0:39:37the bathroom - yeah, it wants a good clean and that,
0:39:37 > 0:39:39- but it's serviceable. - What's the plan for it?
0:39:39 > 0:39:41Is it to rent it out or to sell it on?
0:39:41 > 0:39:43Well, it's an investment for my daughters.
0:39:43 > 0:39:47It is going to be their property. It is bought for them for the future.
0:39:47 > 0:39:49- Oh, great.- They're 17 now, so they're going to be
0:39:49 > 0:39:51hopefully moving in a few years' time, but up till then,
0:39:51 > 0:39:54it'll be a rental property - just see how it goes,
0:39:54 > 0:39:57and then, if they want to move in, when it comes empty,
0:39:57 > 0:40:00then they can move in - it's theirs.
0:40:00 > 0:40:03Because they won't get on the property ladder any other way.
0:40:03 > 0:40:06Er, I've got twin girls, so, room each,
0:40:06 > 0:40:09and then they can... leave me in peace!
0:40:10 > 0:40:12Yes! It's increasingly hard to find
0:40:12 > 0:40:15that first step on the property ladder,
0:40:15 > 0:40:18so Lloyd buying this house as an investment
0:40:18 > 0:40:22or stepping stone for his two daughters is a great move.
0:40:22 > 0:40:26This will be his second step into property development,
0:40:26 > 0:40:29having previously bought a five-bed house which,
0:40:29 > 0:40:33after a two-year process, he eventually converted into two flats.
0:40:33 > 0:40:37I think this one will be a bit more straightforward.
0:40:37 > 0:40:40Tell me what you're going to do to it, then.
0:40:40 > 0:40:42Remove the back boiler out of the fire,
0:40:42 > 0:40:45get rid of the fire, put an electric fire in as a focal point.
0:40:45 > 0:40:47New combi boiler.
0:40:47 > 0:40:49General decorating right through, clean the carpets.
0:40:49 > 0:40:53- If they'll clean, great - if they don't, it's not massive.- Mm-hmm.
0:40:53 > 0:40:56Upstairs, same again - just a general tidy-up,
0:40:56 > 0:40:58general paint through, and that's it.
0:40:58 > 0:41:00Any plans for the stairs? I think it works quite well,
0:41:00 > 0:41:03to have them open-plan like that - would you consider moving them?
0:41:03 > 0:41:06Erm, I don't think you can really move them as such,
0:41:06 > 0:41:09not without losing a lot of the living space down here.
0:41:09 > 0:41:13And all the houses here along this street are the same.
0:41:13 > 0:41:14What's the budget for this?
0:41:14 > 0:41:18Well, originally it was between five and ten,
0:41:18 > 0:41:20but looking at it now, it's going to be...
0:41:20 > 0:41:22- maybe three grand.- Mmm.
0:41:22 > 0:41:24- And that'll be absolutely tops. - And the timescale?
0:41:24 > 0:41:273-4 weeks tops.
0:41:27 > 0:41:30I have people wanting to move in,
0:41:30 > 0:41:32- very urgently.- Oh, already?
0:41:32 > 0:41:35Yeah, yeah. I've had a phone call this morning - "Have you got the
0:41:35 > 0:41:38"property? Have you got the keys? When can I have a look and move in?"
0:41:38 > 0:41:40- Oh, wow!- I've said, "Whoa, hold on a minute!
0:41:40 > 0:41:43"It wants a bit of work and that!"
0:41:43 > 0:41:46I mean, the girl's desperate to move in, from where she's at.
0:41:46 > 0:41:49- And what kind of rent have you agreed?- £400 a month.
0:41:49 > 0:41:51- Right.- Which is giving us a good return.
0:41:51 > 0:41:54- So, you can't complain.- Well, listen, congratulations, good luck with it.
0:41:54 > 0:41:56Thank you. Bye-bye. Thanks.
0:41:59 > 0:42:03Well, Lloyd, breaking the cardinal rule of buying property at auction
0:42:03 > 0:42:05and not visiting it beforehand.
0:42:05 > 0:42:08However, in this instance, it does seem...
0:42:08 > 0:42:10that he's been very, very lucky.
0:42:10 > 0:42:12It's a great house, he paid a good price for it,
0:42:12 > 0:42:15but, er - three weeks to get it sorted?
0:42:15 > 0:42:17It's ticking on!
0:42:17 > 0:42:20We'll see you very shortly when we come back!
0:42:23 > 0:42:26Well, time and tide wait for no man,
0:42:26 > 0:42:30and in property terms, time usually means money.
0:42:30 > 0:42:34So, let's go back and see how that time - and money - has been spent.
0:42:37 > 0:42:40Earlier, I was in Catford in south-east London.
0:42:40 > 0:42:43I viewed this three-bedroomed Victorian terrace
0:42:43 > 0:42:47that had a lot of potential but needed a lot of work to fulfil it.
0:42:49 > 0:42:54Enter Dennis, who purchased it at the auction for £248,000,
0:42:54 > 0:42:57a whopping 63 grand over the guide price.
0:42:57 > 0:43:00Although he was an old hand at the property game,
0:43:00 > 0:43:03this place presented a new kind of challenge.
0:43:05 > 0:43:08This is the first property I ever bought at auction
0:43:08 > 0:43:10and, funnily enough, all my previous ones were new-builds.
0:43:10 > 0:43:13I'm going to have to stop you, because this is funny for me.
0:43:13 > 0:43:17Most start off with a little refurbishment like this,
0:43:17 > 0:43:20and they move on to a new-build.
0:43:20 > 0:43:22With a new-build, typically, you're looking at
0:43:22 > 0:43:25a year to 16 months' turnaround time -
0:43:25 > 0:43:27by the time you've got your financing in place,
0:43:27 > 0:43:29and you've sorted out the planning...
0:43:29 > 0:43:31Whereas with a little refurbishment like this,
0:43:31 > 0:43:33it was a way to keep my crew busy, and I thought,
0:43:33 > 0:43:37you know what? I should be able to turn this around in 3-4 months.
0:43:37 > 0:43:40Dennis was undaunted by the prospect of taking on this project,
0:43:40 > 0:43:44and it's now 15 weeks since he and I had that conversation.
0:43:46 > 0:43:48How does it look now?
0:43:48 > 0:43:50Is it even finished?
0:44:18 > 0:44:20It's finished all right, and it looks pretty amazing -
0:44:20 > 0:44:22and fully-furnished!
0:44:24 > 0:44:26I'm delighted he got rid of that titchy kitchen,
0:44:26 > 0:44:30and has created a fabulous open-plan kitchen-diner and living room,
0:44:30 > 0:44:34as well as sticking to his plan of keeping the front room,
0:44:34 > 0:44:36which is currently laid out as a lounge,
0:44:36 > 0:44:38but could be used as a bedroom.
0:44:39 > 0:44:43And upstairs has seen some equally impressive changes.
0:44:58 > 0:45:02And the problem we had upstairs, the bedrooms were in the wrong place
0:45:02 > 0:45:04and they were just too small.
0:45:04 > 0:45:08So, this bedroom here, that has become one of the masters,
0:45:08 > 0:45:11was originally two small rooms - you had a dividing wall here.
0:45:11 > 0:45:15Where we put the bathroom is where the smaller bedroom was.
0:45:15 > 0:45:18And then this room, you had a chimney breast taking up
0:45:18 > 0:45:21almost the entire space.
0:45:21 > 0:45:24So, we had to find a way that we could get more space
0:45:24 > 0:45:26into the house, into the bedrooms.
0:45:26 > 0:45:28And the way we did that originally
0:45:28 > 0:45:31was with a plan to extend over the kitchen.
0:45:31 > 0:45:33Now, the problem with that is, it would have required
0:45:33 > 0:45:36planning permission, which could have taken several months,
0:45:36 > 0:45:39and we weren't sure whether the structure,
0:45:39 > 0:45:41the weight of that structure,
0:45:41 > 0:45:44would be supported by the existing kitchen roof.
0:45:44 > 0:45:47So, we came up with another plan instead.
0:45:47 > 0:45:51The plan was, take the smallest of the poky bedrooms,
0:45:51 > 0:45:54turn it into a family bathroom,
0:45:54 > 0:45:57and then, taking advantage of the permitted development rights,
0:45:57 > 0:46:01do a loft extension upstairs, which is exactly what we did
0:46:01 > 0:46:04and we put a new staircase as part of that.
0:46:07 > 0:46:10And this is the loft. As you can see, it's a bright, big space,
0:46:10 > 0:46:12lots of windows.
0:46:12 > 0:46:15A little constrained with the ceiling height because, obviously,
0:46:15 > 0:46:18we had to keep within the permitted development rules but flexible room.
0:46:18 > 0:46:21Someone wants an office space here, they can have it.
0:46:21 > 0:46:24Someone wants to put a wardrobe, we can do a wardrobe.
0:46:24 > 0:46:26But I also like it
0:46:26 > 0:46:30because what we've done with this house is created flexible space.
0:46:30 > 0:46:32This could be bought by two sharers
0:46:32 > 0:46:36and they would both have two lovely master bedrooms.
0:46:36 > 0:46:40Well, I didn't see that coming but I'm sold. Dennis has found a hugely
0:46:40 > 0:46:44effective way of working the space available,
0:46:44 > 0:46:47which helped to keep him within his three month timescale.
0:46:47 > 0:46:51His budget was originally 33,000, with an extension out back
0:46:51 > 0:46:54and he'd been worried that he would get carried away
0:46:54 > 0:46:56and overspend on this refurbishment.
0:46:56 > 0:46:59So, has he?
0:46:59 > 0:47:02We've gone over-budget but it was a conscious decision.
0:47:02 > 0:47:05Once we decided to do the loft extension,
0:47:05 > 0:47:07we knew we would be looking at spending more money.
0:47:07 > 0:47:11So, we ended up spending another, I would say, about £20,000.
0:47:11 > 0:47:15So, all in, we're about 52.
0:47:16 > 0:47:20Add that to his purchase price of £248,000
0:47:20 > 0:47:23and Dennis has spent 300,000 here.
0:47:23 > 0:47:25He wants to sell the property
0:47:25 > 0:47:28and to do that he's done something a little different.
0:47:30 > 0:47:34My experience in selling homes is that's a lot of potential
0:47:34 > 0:47:38buyers need a bit of help to visualise the space.
0:47:38 > 0:47:42So, long ago, I made the decision to actually stage or dress
0:47:42 > 0:47:45the properties, almost like a show flat.
0:47:45 > 0:47:48And, in a way, you're selling a lifestyle as well.
0:47:48 > 0:47:52In my experience, it also helps to sell the homes faster
0:47:52 > 0:47:55and also helps achieve the highest price.
0:47:57 > 0:47:59This is a great selling tip.
0:47:59 > 0:48:02If it's something you're able to do, even if you just put in the basics.
0:48:02 > 0:48:05There are companies out there that will rent furniture out,
0:48:05 > 0:48:08so you don't have to actually spend huge sums of money.
0:48:11 > 0:48:15I've got to hand it to Dennis, he's dressed this place beautifully.
0:48:15 > 0:48:16It looks good as new.
0:48:19 > 0:48:22Speaking of which, he and his team usually do new-builds,
0:48:22 > 0:48:24so how dos he feel about this?
0:48:26 > 0:48:30It's a real sense of accomplishment just to see it finished,
0:48:30 > 0:48:32to see what we've been able to achieve,
0:48:32 > 0:48:34to bring this house back to life.
0:48:34 > 0:48:38We all mucked in and just did it and it was fun.
0:48:38 > 0:48:40# Oh, yes, it's fun time
0:48:40 > 0:48:41# Fun time
0:48:41 > 0:48:42# Fun time
0:48:42 > 0:48:43# Fun time
0:48:43 > 0:48:46# Let yourself be happy It's fun time! #
0:48:48 > 0:48:50That's what I like to hear!
0:48:50 > 0:48:53Someone who loves properties and the process.
0:48:57 > 0:49:00I wonder what two local property experts will think
0:49:00 > 0:49:03of all that hard work.
0:49:03 > 0:49:05I'm very impressed with this property.
0:49:05 > 0:49:08It's great, it's a period property, which everyone loves.
0:49:08 > 0:49:10It's in really good condition, which is lovely.
0:49:10 > 0:49:11Three good sized bedrooms
0:49:11 > 0:49:14and I think the standard of this property is so high, that I don't
0:49:14 > 0:49:17think the owner of this property will have any trouble selling it.
0:49:17 > 0:49:20I love the fact that we still have a formal living room,
0:49:20 > 0:49:22with nice period fire place.
0:49:22 > 0:49:25But also we have what I would call the heart of the home now,
0:49:25 > 0:49:29which many buyers are looking for, which is an extended dining room,
0:49:29 > 0:49:32lounge and open-plan kitchen with doors to the garden.
0:49:32 > 0:49:35It really is the heart of the home.
0:49:35 > 0:49:37So, let's get to the heart of the finances.
0:49:37 > 0:49:41Remember that Dennis has spent a total of 300,000 here
0:49:41 > 0:49:43and he intends to sell.
0:49:46 > 0:49:50I would be happy to value this property for £375,000 and I'm
0:49:50 > 0:49:53more than confident in myself that I can get the full asking price.
0:49:53 > 0:49:56I would currently put this property on the market at 385,000
0:49:56 > 0:49:58and with the demand for stock at the moment,
0:49:58 > 0:50:01I would expect to achieve that, if not more.
0:50:01 > 0:50:04Wow! I'm really happy!
0:50:04 > 0:50:06Really, really happy.
0:50:06 > 0:50:11Yeah, erm, it's great. I think for three months' work,
0:50:11 > 0:50:12I'm over the moon.
0:50:14 > 0:50:17I think any developer would be happy with that valuation.
0:50:17 > 0:50:23It would give Dennis a pre-tax profit of between 75 and 85,000.
0:50:23 > 0:50:26That is fantastic!
0:50:26 > 0:50:32But that was bettered when Dennis accepted an offer of £415,00.
0:50:32 > 0:50:35Leaving him £115,000 better off,
0:50:35 > 0:50:38minus the usual fees and expenses.
0:50:38 > 0:50:40A job very well done!
0:50:40 > 0:50:43And it's no surprise that Dennis plans to go to more auctions
0:50:43 > 0:50:46and do more refurbishments in the future.
0:50:46 > 0:50:49So, has he any hints for the intrepid property purchaser?
0:50:52 > 0:50:58The best tip I could give is do your homework, muck in and try
0:50:58 > 0:51:02and think creatively because sometimes, as I found out,
0:51:02 > 0:51:07what you think the original solution is not your best one.
0:51:07 > 0:51:12So, be prepared to change as the circumstances dictate.
0:51:16 > 0:51:18Well, earlier in the programme,
0:51:18 > 0:51:21a change was the order of the day, for sure.
0:51:21 > 0:51:24We were in Workington, on the Cumbrian coast.
0:51:24 > 0:51:27This two bed mid-terrace failed to meet its reserve
0:51:27 > 0:51:30price at auction and was withdrawn.
0:51:30 > 0:51:33But Lloyd then agreed to pay £54,000 for the property
0:51:33 > 0:51:37as an investment for his two teenage daughters.
0:51:37 > 0:51:41The plan was for them to move in after university if they wanted to.
0:51:41 > 0:51:43Haulage company owner Lloyd
0:51:43 > 0:51:45initially was going to refurbish it and rent
0:51:45 > 0:51:50it out and therefore didn't plan any major reconfiguration work.
0:51:50 > 0:51:52The bathroom would stay downstairs
0:51:52 > 0:51:55and he wasn't going to move the staircase.
0:51:56 > 0:51:58Tell me what are you going to do to it then?
0:51:58 > 0:52:00Remove the back boiler out of the fire, get rid of the fire,
0:52:00 > 0:52:02put an electric fire in.
0:52:02 > 0:52:05New combi boiler, general decorating right through.
0:52:05 > 0:52:06What's the budget for this?
0:52:06 > 0:52:09Originally, it was between five and ten but looking at it now,
0:52:09 > 0:52:12it's going to be, maybe, three grand.
0:52:12 > 0:52:14And the timescale?
0:52:14 > 0:52:16Three to four weeks tops.
0:52:16 > 0:52:20I have people wanting to move in very urgently.
0:52:20 > 0:52:25My concern was that he would have to tackle the open-tread staircase,
0:52:25 > 0:52:28which could present a hazard for tenants.
0:52:28 > 0:52:31There's guidance for landlords on these health and safety issues.
0:52:31 > 0:52:34For instance, the gap openings on stairs
0:52:34 > 0:52:37and banisters should be less than 100mm.
0:52:37 > 0:52:40They shouldn't be too shallow or too deep
0:52:40 > 0:52:42and there's guidance on banisters and so on.
0:52:44 > 0:52:47It's now four months later and we've returned.
0:52:47 > 0:52:52I'm intrigued why Lloyd's three to four week timescale has expanded.
0:52:54 > 0:52:56Well, he has replaced all the windows.
0:52:58 > 0:53:00Hang on, where are the stairs?
0:53:00 > 0:53:04They've been moved completely. That explains the extended schedule.
0:53:08 > 0:53:10Redesigning the layout has created this large,
0:53:10 > 0:53:13uncluttered open-plan living room.
0:53:16 > 0:53:19Lloyd decided to replace the bathroom.
0:53:23 > 0:53:25It's still at the back of the property
0:53:25 > 0:53:28and is reached through the kitchen, which has lost the black tiles
0:53:28 > 0:53:32but gained a boiler for the central heating system.
0:53:33 > 0:53:38As Lloyd was going to have to make safe the open-plan staircase
0:53:38 > 0:53:41anyway, he decided to rebuild and relocate it, which benefits
0:53:41 > 0:53:44the two upstairs bedrooms.
0:53:44 > 0:53:48Originally, the staircase was coming up through there, there was
0:53:48 > 0:53:50a door here, with the wall here.
0:53:50 > 0:53:53Obviously, on the other bedroom but
0:53:53 > 0:53:56we've had to knock these walls down and reconfigure them and that's
0:53:56 > 0:54:00given us the benefical...there'll be wardrobes in both bedrooms.
0:54:00 > 0:54:03It would give you two equal rooms
0:54:03 > 0:54:06and extra storage upstairs and downstairs,
0:54:06 > 0:54:09cos under the stairs is a cupboard as well now.
0:54:09 > 0:54:11Both bedrooms can accommodate a double bed
0:54:11 > 0:54:13and with the built-in wardrobe,
0:54:13 > 0:54:16the floor space will be far less cluttered.
0:54:17 > 0:54:20The fascias on the flat roof have been repaired
0:54:20 > 0:54:22and new guttering and down pipes installed.
0:54:24 > 0:54:26As I thought, the possible damp problem
0:54:26 > 0:54:31was just a result of the house being empty, so no problem there.
0:54:31 > 0:54:33So who's been doing the work?
0:54:33 > 0:54:38One firm did all the building work, one firm did all the plumbing,
0:54:38 > 0:54:42one firm did all the electrics and that was it.
0:54:42 > 0:54:44The house has been rewired throughout.
0:54:44 > 0:54:46Lloyd intends to replace the doors on the kitchen units
0:54:46 > 0:54:49and he might put in a new hob and oven.
0:54:52 > 0:54:56Originally, Lloyd planned to just clean the carpets, but in fact
0:54:56 > 0:55:00he's changed his mind and now plans to recarpet throughout.
0:55:01 > 0:55:04He's certainly changed a lot more than he intended to
0:55:04 > 0:55:07so I'm wondering how this longer timescale has affected
0:55:07 > 0:55:12- the tenant he had lined up to move in.- I lost that tenant.
0:55:12 > 0:55:13She's found somewhere else,
0:55:13 > 0:55:16but I have got someone to move in, the first of next month.
0:55:16 > 0:55:17We're nearly at the end now.
0:55:17 > 0:55:20Another week, week and a half and it will be finished.
0:55:20 > 0:55:23Relocating the stairs was a good idea,
0:55:23 > 0:55:26but I wonder how this affected the budget.
0:55:26 > 0:55:28That went out of the window when we knew
0:55:28 > 0:55:32we had to move the staircase for safety reasons for children.
0:55:32 > 0:55:35We've spent £11,000, which is 8,000 over budget,
0:55:35 > 0:55:37but it was well worth it, I think.
0:55:37 > 0:55:40With the £54,000 he paid for the property,
0:55:40 > 0:55:45it takes his total investment to £65,000.
0:55:45 > 0:55:47We invited two local estate agents to come
0:55:47 > 0:55:49and have a look at the property to get their opinion
0:55:49 > 0:55:53on its potential in the local housing market.
0:55:53 > 0:55:57We're 90% there with the refurbishment at the moment,
0:55:57 > 0:56:00but what has been done so far has been done to a good standard.
0:56:00 > 0:56:03This one's going to make a good little house.
0:56:03 > 0:56:05It's been replastered, rewired.
0:56:05 > 0:56:07The stairs have been moved and that's created
0:56:07 > 0:56:10quite an open-plan living space downstairs which is great.
0:56:12 > 0:56:16Any potential purchaser could keep the room, this room as it is.
0:56:16 > 0:56:20Or split it into two, so I would certainly think that
0:56:20 > 0:56:23the movement of the staircase has been a positive.
0:56:23 > 0:56:26How much do the agents think the property's now worth?
0:56:26 > 0:56:29More than the £65,000 Lloyd has invested here?
0:56:31 > 0:56:35I'd expect to ask £82,000 and achieve £80,000 easily.
0:56:35 > 0:56:40We certainly think we could market this property in the region of £85,000.
0:56:40 > 0:56:45Well, with £85,000 that would generate a £20,000 profit before
0:56:45 > 0:56:50- taxes and expenses.- 85 is what I was expecting, there or thereabouts.
0:56:51 > 0:56:54At 82, I think I would just keep it as a rental.
0:56:54 > 0:56:56I wouldn't consider selling it.
0:56:56 > 0:56:59Lloyd's got a tenant lined up but how much do the agents think
0:56:59 > 0:57:01he should be charging?
0:57:01 > 0:57:03What rental income could the property generate?
0:57:04 > 0:57:06The rental market is buoyant in this town
0:57:06 > 0:57:09and he should achieve £425 per calendar month.
0:57:09 > 0:57:12An achievable rental figure would be between 400
0:57:12 > 0:57:14and £450 per calendar month.
0:57:14 > 0:57:18For what the property owes me, approximately 65,000,
0:57:18 > 0:57:21I'm quite happy with £400 a month. It's a good return.
0:57:22 > 0:57:25£400 per calendar month would give Lloyd
0:57:25 > 0:57:28over 8% yield in the short term.
0:57:28 > 0:57:31And in the longer term, the house could still be available
0:57:31 > 0:57:34for his daughters when they leave university.
0:57:34 > 0:57:36I wonder if he's got his eye out
0:57:36 > 0:57:41for another investment property like this or something different.
0:57:41 > 0:57:43If the right property comes along, I'll have a look at it.
0:57:43 > 0:57:47It doesn't matter what it is, whether it's a two, three, four-bedroomed
0:57:47 > 0:57:51house, or a flat, it's just the right property at the right price.
0:57:54 > 0:57:58Well, we hope you have enjoyed seeing today's property portfolio.
0:57:58 > 0:58:01Make sure you join us next time for more brave buyers' experiences
0:58:01 > 0:58:03on Homes Under The hammer.
0:58:03 > 0:58:06- We'll see you then. - Goodbye.- Goodbye.