0:00:02 > 0:00:04Hello. Over the years, Martin and I have witnessed the ups
0:00:04 > 0:00:07- and the downs of the housing market. - But whether it's a home or
0:00:07 > 0:00:09an investment property you're buying,
0:00:09 > 0:00:11you want to see its value go up, not down.
0:00:11 > 0:00:12So, if you do your research,
0:00:12 > 0:00:16you may stand a better chance by buying your home under the hammer.
0:00:41 > 0:00:44Now, we've all heard about the ever-changing property market
0:00:44 > 0:00:46and delays in buying.
0:00:46 > 0:00:49Now, buying at auction really is one of the simplest processes.
0:00:49 > 0:00:53Your hand goes up, the hammer goes down, and you've bought it.
0:00:53 > 0:00:57That is what happened when today's three lots went under the hammer.
0:00:59 > 0:01:02Getting permission to extend this Southwark property
0:01:02 > 0:01:04could prove problematic!
0:01:04 > 0:01:07This is a conservation area, so nothing is guaranteed.
0:01:08 > 0:01:11I love this beautiful Cornish cottage.
0:01:11 > 0:01:13Have I wandered into Bargain Hunt by mistake?
0:01:13 > 0:01:17This is an absolutely beautiful Georgian fireplace.
0:01:19 > 0:01:20Ilkeston, Derbyshire.
0:01:20 > 0:01:23There are three to four bedrooms in this property,
0:01:23 > 0:01:25which has got me puzzled.
0:01:25 > 0:01:27What's a "to four" bedroom?
0:01:30 > 0:01:33- All these properties went to auction.- 434...
0:01:33 > 0:01:34We find out who bought them
0:01:34 > 0:01:38- and what they paid when they went under the hammer.- Sold.
0:01:41 > 0:01:46This is Bermondsey in southeast London in the borough of Southwark.
0:01:46 > 0:01:49Historically, a working class area,
0:01:49 > 0:01:52it developed in the Victorian era due to the thriving trade
0:01:52 > 0:01:56in industry based around the dockyards on the Thames.
0:01:56 > 0:01:59Today, this area is still home to families who grew up here
0:01:59 > 0:02:03and it's also feeling the effect of the South Bank's popularity
0:02:03 > 0:02:07and property here is becoming that bit more attractive to new buyers.
0:02:09 > 0:02:13This oft forgotten corner of London still offers decent value for money.
0:02:13 > 0:02:17Well, bearing in mind we're in the capital, but for how long?
0:02:17 > 0:02:19Cafes, boutiques, bars
0:02:19 > 0:02:23and converted warehouses all add to this area's appeal.
0:02:23 > 0:02:26I'd better get to the property pronto.
0:02:26 > 0:02:28I feel price is rising by the second.
0:02:28 > 0:02:31# One for the money and the free rides
0:02:31 > 0:02:33# It's two for the lie that you denied
0:02:33 > 0:02:35# All rise
0:02:35 > 0:02:37# All rise... #
0:02:39 > 0:02:42This road is one of the later Victorian developments in
0:02:42 > 0:02:47the Bermondsey area, a street spread out to house the dockyard workers.
0:02:47 > 0:02:51It's a lovely spot with neat period terraces, nice little front gardens,
0:02:51 > 0:02:54and the house I'm here to see today is this one.
0:02:54 > 0:02:59It's a three-bedder which had a guide price of £320,000.
0:03:03 > 0:03:05This is a brilliant blank canvas to work with.
0:03:05 > 0:03:07It's already been completely stripped.
0:03:07 > 0:03:12Let's have a little look in here. So this is the first reception room.
0:03:12 > 0:03:14I'm glad to see that somebody's already taken the care to
0:03:14 > 0:03:16open up into the second reception room,
0:03:16 > 0:03:20but there's little bits and pieces in here that I love.
0:03:20 > 0:03:23You've got the arched window, a fireplace here,
0:03:23 > 0:03:26once you pull that back, you never know what you're going to find.
0:03:26 > 0:03:30You've got nice cornicing. The hallway along here...
0:03:30 > 0:03:31Now, when you take these off,
0:03:31 > 0:03:35you'll probably find some lovely spindles underneath,
0:03:35 > 0:03:38and right the way through to the back of the property... Wow!
0:03:38 > 0:03:40Didn't expect to see this.
0:03:40 > 0:03:43A really nice-sized kitchen with a bay window there,
0:03:43 > 0:03:49fantastic space and, right at the back...oh, no!
0:03:49 > 0:03:52The bathroom...but, what a big bathroom.
0:03:52 > 0:03:55Now, I'm hoping that we could get that upstairs,
0:03:55 > 0:03:59get rid of this and then really open up this downstairs living space.
0:03:59 > 0:04:02You could have a dining area, some potential doors put in to
0:04:02 > 0:04:07go out into the garden. So, for me, first impressions...very exciting.
0:04:08 > 0:04:10When you're dealing with a freehold property rather than
0:04:10 > 0:04:14a leasehold one, it's always easier to get excited about potential,
0:04:14 > 0:04:19because the house is all yours to do with what you will, within reason.
0:04:19 > 0:04:22However, keep in mind that we're in a conservation area,
0:04:22 > 0:04:26so any major works will need to be approved by the local council.
0:04:28 > 0:04:31The apple tree in the garden is a case in point.
0:04:31 > 0:04:34It really blocks out light and could spell trouble for the drains
0:04:34 > 0:04:38and foundations, but there could be a tree preservation order or
0:04:38 > 0:04:43the conservation regulations might restrict what you can do about it.
0:04:43 > 0:04:45# Don't sit under the apple tree
0:04:45 > 0:04:48# With anyone else but me
0:04:48 > 0:04:51# Anyone else but me
0:04:51 > 0:04:53# Anyone else but me
0:04:53 > 0:04:55# No, no, no! #
0:04:55 > 0:04:57Upstairs, there's a wonderful bedroom to the front
0:04:57 > 0:05:00spanning the full width of the house.
0:05:00 > 0:05:02Another good-sized double in the middle
0:05:02 > 0:05:04and a dinky double at the back.
0:05:04 > 0:05:07So, what options are there for getting the facilities
0:05:07 > 0:05:08moved up here?
0:05:10 > 0:05:13Well, you've got to put the bathroom up here somewhere
0:05:13 > 0:05:17and this small bedroom at the back, I think, is the perfect size,
0:05:17 > 0:05:22but, by doing that, you would be turning the house into a two-bedder.
0:05:22 > 0:05:25Now, I don't necessarily think that is a major issue
0:05:25 > 0:05:26and it's certainly better than leaving
0:05:26 > 0:05:28the bathroom off the kitchen,
0:05:28 > 0:05:32but I'd like to see if there was a chance you could extend out
0:05:32 > 0:05:33over the back here
0:05:33 > 0:05:37and then you could put the third bedroom in the new extension,
0:05:37 > 0:05:41you could put your bathroom in here with a corridor right along here.
0:05:41 > 0:05:44Now, you could fit a little skylight in the bathroom or you could
0:05:44 > 0:05:45punch a window in this wall,
0:05:45 > 0:05:48but there's no point getting carried away with all this
0:05:48 > 0:05:50because you'll need planning permission first
0:05:50 > 0:05:54and this is a conservation area, so nothing is guaranteed.
0:05:54 > 0:05:56If you did manage to extend,
0:05:56 > 0:05:59that would solve your bathroom issue and increase your property's value
0:05:59 > 0:06:03all in one go, but, by how much and would it be worth it?
0:06:06 > 0:06:10This property came with a guide price of 320,000
0:06:10 > 0:06:13and we asked a local estate agent along to get some more advice.
0:06:16 > 0:06:19The house is in a beautiful location which is now favoured by
0:06:19 > 0:06:21young professionals looking to stay close to the city.
0:06:21 > 0:06:23A great opportunity,
0:06:23 > 0:06:25obviously, wood flooring throughout...
0:06:25 > 0:06:27pretty minor work, really, required other than, you know,
0:06:27 > 0:06:30potentially having to move the bathroom.
0:06:30 > 0:06:33Other than that, absolutely has the basics...beautiful period property.
0:06:33 > 0:06:34Great potential.
0:06:36 > 0:06:37We're both agreed then.
0:06:37 > 0:06:39Nice house, and moving that bathroom upstairs
0:06:39 > 0:06:41would definitely improve it.
0:06:42 > 0:06:46So, what about that possible extension to keep the third bedroom?
0:06:46 > 0:06:50Would spending the time, money and effort doing it give you
0:06:50 > 0:06:53a decent return if you were to sell the house on?
0:06:53 > 0:06:56If you were to move the bathroom upstairs and finish the property
0:06:56 > 0:07:01to a very high standard, we would market the property around £550,000.
0:07:01 > 0:07:03If there was a possibility of extending the property further
0:07:03 > 0:07:06and maintaining three bedrooms plus a bathroom,
0:07:06 > 0:07:08they'd comfortably be looking to market at 575,000.
0:07:11 > 0:07:14Buying into this area would not just mean living super close to
0:07:14 > 0:07:18the centre of town, it's also about owning a little piece of London's
0:07:18 > 0:07:23industrial past in an area that the locals are still very proud of.
0:07:23 > 0:07:26Let's see who went for it at the auction.
0:07:29 > 0:07:30Southwark.
0:07:30 > 0:07:34I really like this one. I think it's a great buy. I've seen this one.
0:07:34 > 0:07:36It's a good area to invest in.
0:07:36 > 0:07:37Where'd you wish to start?
0:07:39 > 0:07:41350 on the phone, 350...
0:07:41 > 0:07:43355 in the room.
0:07:43 > 0:07:44360.
0:07:46 > 0:07:48Too late. 360.
0:07:48 > 0:07:49365.
0:07:49 > 0:07:52370. 375.
0:07:52 > 0:07:54380 on my left.
0:07:54 > 0:07:55390.
0:07:55 > 0:07:57395...
0:07:57 > 0:07:58'Bidding continued to escalate at pace
0:07:58 > 0:08:03'and we rejoin the auction at a bid of 430,000.'
0:08:03 > 0:08:04430.
0:08:05 > 0:08:07431.
0:08:07 > 0:08:09432.
0:08:09 > 0:08:12Back in, 433, yeah?
0:08:12 > 0:08:14434.
0:08:14 > 0:08:16435.
0:08:16 > 0:08:18436.
0:08:18 > 0:08:20437.
0:08:20 > 0:08:23Back to you, 436. It's first time...
0:08:25 > 0:08:26..second time...
0:08:27 > 0:08:29..third and last time. Have you all done?
0:08:31 > 0:08:34Sold 436 to you, sir. Sorry, the other bidders.
0:08:34 > 0:08:39Coming in at a whopping £116,000 over the guide price with
0:08:39 > 0:08:43that bid of 436,000 was David.
0:08:43 > 0:08:46He purchased the house with brother James.
0:08:46 > 0:08:48The pair run an estate agency in north London
0:08:48 > 0:08:51and have a portfolio of properties.
0:08:51 > 0:08:54I met them to find out what's brought them south of the river
0:08:54 > 0:08:58and why they wanted to invest a rather sizeable chunk of money here.
0:08:58 > 0:09:00# Gotta friend, my brother
0:09:00 > 0:09:02# Be my brother... #
0:09:03 > 0:09:06- David and James, so lovely to meet you today.- Thanks.
0:09:06 > 0:09:09So, you're brothers, you work together, you invest together,
0:09:09 > 0:09:11you're going to do this development project together...
0:09:11 > 0:09:15- Yeah, it's good that we get on, yeah. - Do you get on?- Yeah, we do.- Luckily.
0:09:15 > 0:09:18There's the odd fight, but, yeah, generally, generally good.
0:09:18 > 0:09:20I love your house that you've bought at auction.
0:09:20 > 0:09:23What I want to know is, what are you going to do with it?
0:09:23 > 0:09:26Uh, we're going to do a general refurbishment.
0:09:26 > 0:09:30We're probably going to relocate the bathroom at the back upstairs.
0:09:30 > 0:09:32- Great.- Because, um, we've seen a lot of people have done it
0:09:32 > 0:09:35in the street already and, these days, people would prefer
0:09:35 > 0:09:37a bathroom upstairs. Um, and that would probably mean
0:09:37 > 0:09:39extending the kitchen.
0:09:39 > 0:09:43The survey came back with no problems, so...you know,
0:09:43 > 0:09:44it's just cosmetic, really.
0:09:44 > 0:09:47In your opinion, where's the best place for that bathroom to go?
0:09:47 > 0:09:50- We're going to put it in-between the hallway and the back bedroom.- OK.
0:09:50 > 0:09:53So, it's going to be small, it's going to make that bedroom
0:09:53 > 0:09:56smaller, but it's the only way round the problem.
0:09:56 > 0:09:59Or you could just put it in one of the bedrooms as you come up
0:09:59 > 0:10:01the flight of stairs. Right in front of you,
0:10:01 > 0:10:03you've got the bedroom with the window looking out onto
0:10:03 > 0:10:05the apple tree. You could put it in there.
0:10:05 > 0:10:07You could just literally have a two-bedroom
0:10:07 > 0:10:10property as opposed to a three, and speaking to some of
0:10:10 > 0:10:13the agents locally, they seem to think that it won't damage the value
0:10:13 > 0:10:15too much to do that.
0:10:15 > 0:10:18You won't get a whole lot more money by having a third bedroom here.
0:10:18 > 0:10:20Yeah, it's definitely a possibility.
0:10:20 > 0:10:24It's something that we'll think about, but I do believe you would
0:10:24 > 0:10:29get slightly more value if you were looking to sell it as a three-bed.
0:10:29 > 0:10:32So, what about then extending out over the top of the kitchen area and
0:10:32 > 0:10:36having your third bedroom up there with a little walkway.
0:10:36 > 0:10:39That is a possibility, but that involves planning permission and a
0:10:39 > 0:10:43longer time to do it and we want to get this rented as soon as possible.
0:10:43 > 0:10:45We don't want to go too far with this,
0:10:45 > 0:10:49we just want to do a general do it up, make it really good, rent it out.
0:10:49 > 0:10:52So, you're definitely looking to rent it, not to sell it,
0:10:52 > 0:10:55it's going to be slotted into your portfolio of...how many now?
0:10:55 > 0:10:57This would be number 11.
0:10:57 > 0:11:00And they've accumulated those 11 properties in seven years,
0:11:00 > 0:11:03so they're clearly doing something right.
0:11:03 > 0:11:08'Not to tempt fate, but it sounds to me that they have the ideal balance
0:11:08 > 0:11:10'of giving due consideration to all the options, but,'
0:11:10 > 0:11:12without going OTT.
0:11:14 > 0:11:16They have a healthy £25,000 budget
0:11:16 > 0:11:20and want to keep as many of the original features as possible.
0:11:20 > 0:11:23Always music to my ears.
0:11:23 > 0:11:26One feature they're hoping to get rid of is the tree and they
0:11:26 > 0:11:28don't think that's going to be a problem.
0:11:28 > 0:11:31With their team of builders, the only other teamwork is
0:11:31 > 0:11:35that between the brothers, so, I wondered what that was like.
0:11:36 > 0:11:39We're brothers, good mates and we've got a business together,
0:11:39 > 0:11:41so we are lucky in that way, you know.
0:11:41 > 0:11:44- At weekends, we'll go for a beer together, so...- Oh, my gosh!
0:11:44 > 0:11:45Weekends too!
0:11:45 > 0:11:47Weekdays as well as weekends!
0:11:47 > 0:11:49It does get... No, I'm joking. It's all right.
0:11:49 > 0:11:52Listen, boys, it's been lovely meeting you today. I can't wait to
0:11:52 > 0:11:55see what you do and see the outcome of this lovely house.
0:11:55 > 0:11:58- Thank you.- Thanks.- Really nice to meet you.- Cheers.- Thank you.
0:11:58 > 0:12:01Well, I am genuinely intrigued to see what happens with
0:12:01 > 0:12:05the upstairs layout and I think James and David really need to
0:12:05 > 0:12:09decide who their target market is before they make any decisions.
0:12:09 > 0:12:12You can find out what happens later in the show.
0:12:15 > 0:12:17Fancy another layout conundrum?
0:12:17 > 0:12:21Well, look no further than here in Ilkeston, Derbyshire,
0:12:21 > 0:12:25a location popular with commuters working in Nottingham or Derby.
0:12:26 > 0:12:29Well, just half a mile outside the town centre
0:12:29 > 0:12:31is the property I'm here to see.
0:12:31 > 0:12:35£58,000 plus, was the guide price, end terrace,
0:12:35 > 0:12:39but a three to four bedroomed one.
0:12:39 > 0:12:41What's a "to four" bedroom?
0:12:43 > 0:12:47I am sure that all will be revealed in good time.
0:12:47 > 0:12:49Meanwhile, what's it like inside?
0:12:51 > 0:12:52Looks pretty good at first glance.
0:12:52 > 0:12:56Certainly in nice condition decoration-wise. Doesn't smell.
0:12:56 > 0:12:57Half decent carpet.
0:12:57 > 0:13:00Front living room area here. You've got a gas fire,
0:13:00 > 0:13:03even that looks relatively new, and then it looks like it continues
0:13:03 > 0:13:05as you come into the rear sitting room.
0:13:05 > 0:13:09Again, half decent gas fire. Stairs up to your bedrooms...
0:13:09 > 0:13:11HE CHUCKLES
0:13:11 > 0:13:15And maybe the "to fourth" bedroom. Yeah. Lovely. Lovely, lovely!
0:13:15 > 0:13:17And, yes, it continues in here. Look at this kitchen.
0:13:17 > 0:13:19OK, it might not be particularly modern.
0:13:19 > 0:13:24It would definitely benefit from some new units, it's not huge, but
0:13:24 > 0:13:29perfectly serviceable, and so far, I'm liking everything I'm seeing.
0:13:31 > 0:13:33What about that bedroom though?
0:13:33 > 0:13:37From the outside, this end terrace looks to be in fair condition.
0:13:37 > 0:13:41It's quite narrow, which could go some way to explaining that
0:13:41 > 0:13:44odd description of the number of bedrooms.
0:13:44 > 0:13:48And so upstairs, where we will hopefully solve
0:13:48 > 0:13:51the mystery of the number of bedrooms. Well, let's count them.
0:13:51 > 0:13:53At the front there is one.
0:13:53 > 0:13:56Upstairs in the attic there is number two.
0:13:56 > 0:14:00A third one there, which is a good size and then down this corridor...
0:14:00 > 0:14:02to...
0:14:03 > 0:14:05..the answer. This is...
0:14:05 > 0:14:09the "to fourth" bedroom! Look!
0:14:09 > 0:14:12The reason it's a "to fourth" is because...
0:14:12 > 0:14:14tacked on the end of it is the only loo
0:14:14 > 0:14:17and bathroom in the property, well, apart from the toilet that's
0:14:17 > 0:14:20outside, and I suppose that's not ideal, is it?
0:14:20 > 0:14:22You don't really want to access this via a bedroom,
0:14:22 > 0:14:24so, I guess you could get a bed in there,
0:14:24 > 0:14:28but more than likely you'd have it as a study or a workroom.
0:14:28 > 0:14:32So, now you know what a "to fourth" bedroom is.
0:14:32 > 0:14:35# Is there room enough Still room enough
0:14:35 > 0:14:37# For me?
0:14:39 > 0:14:43# Is there room enough Still room enough
0:14:43 > 0:14:44# For me? #
0:14:46 > 0:14:48Well, when it comes to that attic bedroom,
0:14:48 > 0:14:50there is one cautionary note
0:14:50 > 0:14:53and that is to always check that the loft conversion
0:14:53 > 0:14:56meets the strict planning requirements for access,
0:14:56 > 0:14:58head height and escape route.
0:14:58 > 0:15:01Well, at the back of the property, it's really rather pleasant.
0:15:01 > 0:15:03I love this red brick.
0:15:03 > 0:15:06You've got an outside loo there, a bit of a storage area,
0:15:06 > 0:15:08and then the garden.
0:15:08 > 0:15:10Well, with these kind of properties, terraces like this,
0:15:10 > 0:15:13you never quite know what the garden's going to be like.
0:15:13 > 0:15:17But in this case, it's fantastic and it's big.
0:15:17 > 0:15:19The other good thing is it's fairly low-maintenance,
0:15:19 > 0:15:22lots of gravel, and, certainly if you're looking at
0:15:22 > 0:15:25renting this place out, people who rent sometimes
0:15:25 > 0:15:28don't look after gardens, so, it's absolutely ideal.
0:15:28 > 0:15:31But if you were to live here, loads and loads of lovely little
0:15:31 > 0:15:36spaces to sit in the summer, a greenhouse to grow your seedlings.
0:15:36 > 0:15:40A shed, a little interesting area at the back here, I mean,
0:15:40 > 0:15:42what more could you possibly want?
0:15:42 > 0:15:45# No, not much... #
0:15:45 > 0:15:48Well, at the guide price of £58,000 plus,
0:15:48 > 0:15:49I wouldn't be surprised
0:15:49 > 0:15:53if there was stiff competition on auction day for this house
0:15:53 > 0:15:58that's in such good nick and in the handy commuter-ville of Ilkeston.
0:15:59 > 0:16:04What does a local estate agent think of the plus points of this property?
0:16:04 > 0:16:06'As I walk round, I think it's a good-sized property.
0:16:06 > 0:16:07'It's quite spacious.'
0:16:07 > 0:16:09Two good-sized reception rooms,
0:16:09 > 0:16:11three double bedrooms upstairs
0:16:11 > 0:16:15and the addition of the fourth bedroom/study.
0:16:15 > 0:16:17Well, it's a nice all-round property, this,
0:16:17 > 0:16:20and it doesn't need a great deal doing to it.
0:16:20 > 0:16:22How much does the agent think it could be worth after
0:16:22 > 0:16:26a bit of a spruce up, if it came back on the sales market?
0:16:26 > 0:16:29If the property was modernised, I would expect this property to
0:16:29 > 0:16:33achieve anywhere within the region of £80,000 to £85,000.
0:16:33 > 0:16:37And, assuming the bedroom layout remains as it is, how much
0:16:37 > 0:16:40rental income does the agent think it could produce?
0:16:40 > 0:16:42If the property was to be rented out,
0:16:42 > 0:16:45I would hope that the property would be able to achieve anywhere
0:16:45 > 0:16:47within the region of £450 to £500 per calendar month.
0:16:49 > 0:16:53Well, what a great property this turned out to be.
0:16:53 > 0:16:55And I love that "to four" bedroom.
0:16:55 > 0:16:58- HE SIGHS - Who went for it? Let's find out...
0:16:58 > 0:17:00when it went to the auction.
0:17:00 > 0:17:02Lot 45,
0:17:02 > 0:17:07an extremely well-presented end terraced house, uh, that's got
0:17:07 > 0:17:11three/four bedroomed accommodation. £55,000,
0:17:11 > 0:17:1255.
0:17:12 > 0:17:1654. Bid me where you like. 54,000 I have.
0:17:16 > 0:17:1754, 55,
0:17:17 > 0:17:2055, 56,
0:17:20 > 0:17:2457 at the back. 58. 58. At 58...
0:17:24 > 0:17:2959, sir? 59. 60,000.
0:17:29 > 0:17:30Seated bid at 60,000.
0:17:30 > 0:17:34It's in the market, you're not bidding against me. At £60,000.
0:17:34 > 0:17:3761. 61. 62.
0:17:37 > 0:17:3963.
0:17:39 > 0:17:4164. 500?
0:17:41 > 0:17:4463 and a half. 64.
0:17:44 > 0:17:4864,500. 65,000.
0:17:48 > 0:17:4965 and a half.
0:17:50 > 0:17:53500. 66.
0:17:53 > 0:17:56At 66,500.
0:17:56 > 0:18:00At £66,000 once... 500.
0:18:01 > 0:18:0566 and a half there. 67? 67.
0:18:05 > 0:18:085 again? 67,500.
0:18:08 > 0:18:1068 and 5.
0:18:10 > 0:18:1269 and 5.
0:18:12 > 0:18:1570,000.
0:18:15 > 0:18:18£70,000. Done? Sure?
0:18:18 > 0:18:20At 70,000 once...
0:18:20 > 0:18:21twice, third time.
0:18:22 > 0:18:24Sold at 70,000. Thank you.
0:18:24 > 0:18:29Not surprisingly, the house went for £12,000 over the guide price and
0:18:29 > 0:18:31was bought for 70,000 by Jay,
0:18:31 > 0:18:35who was at the auction with his dad, Rob.
0:18:35 > 0:18:38I met them both back at the property to find out more.
0:18:38 > 0:18:40- Jay, Rob, great to meet you both. - Yes, and you.- And you.
0:18:40 > 0:18:44- Congratulations.- Thank you, yeah. - Good house.- Spot on. It really is,
0:18:44 > 0:18:47yeah. Spot on. It's exactly what we wanted, I think, wasn't it?
0:18:47 > 0:18:49Tell me about the partnership then. What's going on there?
0:18:49 > 0:18:51I've always been passionate about property,
0:18:51 > 0:18:54and you wanted to get on board with it, so.
0:18:54 > 0:18:58Well, I think Jay's always had this passion for property and I think
0:18:58 > 0:19:01he's watched every Homes Under The Hammer over the last ten years...
0:19:01 > 0:19:02Really?!
0:19:02 > 0:19:05The last couple of years doing his A levels,
0:19:05 > 0:19:07he decided he wanted to do something with property
0:19:07 > 0:19:10and we knew he was serious in the summer when we went on holiday,
0:19:10 > 0:19:14um, and all he did was read about property and kept coming out
0:19:14 > 0:19:18with buy-to-lets and below market values and everything else.
0:19:18 > 0:19:21So, I knew that's what he wanted to do and, fortunately,
0:19:21 > 0:19:23I'm in a position where I can help to sort of give him
0:19:23 > 0:19:26some business acumen and a bit of experience
0:19:26 > 0:19:31- and a bit of cash as well to follow his dream, really.- Oh, good on you.
0:19:31 > 0:19:35- What's your background? What do you do?- Um, healthcare.- OK.
0:19:35 > 0:19:38But, I suppose it's following on like 25 years ago,
0:19:38 > 0:19:43my parents sort of helped me set up to run our business.
0:19:43 > 0:19:44- They sold their properties. - Fantastic.
0:19:44 > 0:19:49- So, you're helping your son now? - Yes, yeah, yeah, hopefully.
0:19:49 > 0:19:50I've got the privilege of being able
0:19:50 > 0:19:53to work alongside my boy, I suppose, eh?
0:19:53 > 0:19:55# Teach...
0:19:55 > 0:19:58# The children well
0:19:58 > 0:20:00# Their father's hell
0:20:01 > 0:20:05# Did slowly go by... #
0:20:05 > 0:20:08- How old are you? - 18.- 18!- Yes.- Fantastic!
0:20:08 > 0:20:10I think it started in my last year of school, actually,
0:20:10 > 0:20:12and I finished in June this year
0:20:12 > 0:20:15so I think I purchased a first property back in my school days,
0:20:15 > 0:20:19so this is my second one, hopefully, the second and more to come.
0:20:20 > 0:20:23'Jay's dad, Rob, only does property as a sideline.
0:20:23 > 0:20:27'His full-time job is owning and running local care homes,
0:20:27 > 0:20:31'which Jay's mum, Rose, is also involved in.
0:20:31 > 0:20:32'Jay is a keen rugby player
0:20:32 > 0:20:36'and plays semi-professionally for Ilkeston, but it's
0:20:36 > 0:20:38'the local football club that he and his dad, Rob,
0:20:38 > 0:20:41'hope will score for them.'
0:20:41 > 0:20:43Going back to Ilkeston, I think it's got a perfect link to
0:20:43 > 0:20:45the football club down the road,
0:20:45 > 0:20:47which I've got a very good connection with as in,
0:20:47 > 0:20:48like, the chairman, we know him well
0:20:48 > 0:20:51and we've got a good connection with the club and, um,
0:20:51 > 0:20:52they have said that, um,
0:20:52 > 0:20:55they're willing to bring some of their boys and live in here for...
0:20:55 > 0:20:58- Oh!- ..as, like, a multiple occupation kind of thing,
0:20:58 > 0:21:01- a sideline to look at.- So, a tenant lined up already then.- Yeah.
0:21:01 > 0:21:03- That's one option, isn't it? - And the house itself is
0:21:03 > 0:21:06- pretty spot on, isn't it? - I don't think we could have picked
0:21:06 > 0:21:08- a better one, really, could we? - No, we looked round it,
0:21:08 > 0:21:10we didn't think it needed a lot doing to it, um,
0:21:10 > 0:21:12it has got a back boiler,
0:21:12 > 0:21:14it needs a combi putting in and the electrics just looking at
0:21:14 > 0:21:18and then the safety aspects, doing the smoke detectors and things,
0:21:18 > 0:21:21so, I don't know, we've got a budget, haven't we, of...?
0:21:21 > 0:21:24- About two and a half grand, I think, or three grand.- Right.
0:21:24 > 0:21:27- We might turn it around in a week or two weeks, probably, so.- Oh, wow!
0:21:27 > 0:21:29- Yeah.- If you were to stick it back on the market,
0:21:29 > 0:21:31what do you think you'd get for it?
0:21:31 > 0:21:33Not significantly more at the moment. I think
0:21:33 > 0:21:36if we did revamp it completely, there's a room leading onto
0:21:36 > 0:21:38the bathroom upstairs, which is like a study area.
0:21:38 > 0:21:41That's a three-bed at the moment, make it a four-bed.
0:21:41 > 0:21:44- Potentially get a bit more...- So, you've finished your A levels?
0:21:44 > 0:21:46- Just finished my A levels.- Are you planning to go on to university?
0:21:46 > 0:21:48Well, I'm just having a gap year out to begin with,
0:21:48 > 0:21:52having a look around property, see if I can get a portfolio started,
0:21:52 > 0:21:54and then come back and re-evaluate at the end of the year.
0:21:54 > 0:21:56If it's picking up and going really well,
0:21:56 > 0:21:58I'll most likely stick with doing this.
0:21:58 > 0:22:01I think it's more attractive than going to university at the moment.
0:22:01 > 0:22:03So, let's set some expectations then.
0:22:03 > 0:22:07- By 25, how many properties are you going to have?- 25...
0:22:07 > 0:22:09Um...how many is that? Six, seven years...
0:22:09 > 0:22:11- Pushing ten, probably! - THEY LAUGH
0:22:11 > 0:22:13Wow! Go for it, Jay!
0:22:13 > 0:22:15- # Get back!- Heads up!- Go for it!
0:22:15 > 0:22:17- # Get back!- Heads up!
0:22:17 > 0:22:19- # Get back!- Heads up!- Go for it!
0:22:19 > 0:22:20- # Get back!- Heads up! #
0:22:20 > 0:22:24Robin tends to help a little, along with Jay's two brothers.
0:22:24 > 0:22:27One of them is an electrician, which is pretty handy.
0:22:28 > 0:22:31What do the rest of the family think about what you're doing?
0:22:31 > 0:22:34His two younger sisters, who I've said I'll invest
0:22:34 > 0:22:37their...rather than put their little bit of savings in a bond or
0:22:37 > 0:22:40anything, if they want to put it into some property.
0:22:40 > 0:22:42- They both said no at the minute. - How old are they?
0:22:42 > 0:22:4414 and 16.
0:22:44 > 0:22:45I think that would be ideal,
0:22:45 > 0:22:48probably in two or three years' time, so that they've got
0:22:48 > 0:22:51some property as well then to go on with if they're going to go to uni.
0:22:51 > 0:22:53- You setting the whole family up there?- Yes.
0:22:53 > 0:22:54I'm really delighted for you
0:22:54 > 0:22:57and I'm delighted that we had some part to play in the whole thing.
0:22:57 > 0:22:59- Good.- Thank you very much. - Congratulations.
0:22:59 > 0:23:02We look forward to seeing how you get on.
0:23:03 > 0:23:07Well, Jay's certainly started young and with help of dad Rob,
0:23:07 > 0:23:09has got himself a cracking little property here.
0:23:09 > 0:23:12Still, a very tight turnaround to get it sorted out.
0:23:12 > 0:23:16How will he get on? You can find out later in the show.
0:23:16 > 0:23:18Coming up, there's a father and daughter team
0:23:18 > 0:23:23taking on a challenge in this gorgeous Cornish cottage.
0:23:23 > 0:23:25Let's just hope we're on speaking terms when you come back!
0:23:28 > 0:23:32We return to Ilkeston where teenage developer Jay has been given
0:23:32 > 0:23:36a start in business just like his dad was 25 years ago.
0:23:40 > 0:23:42But, first, we're still keeping it all in the family here
0:23:42 > 0:23:45in Southwark, southeast London.
0:23:45 > 0:23:50This three-bedroom terrace went for £116,000 over its guide price
0:23:50 > 0:23:56at the auction and sold for £436,000 to brothers James and David.
0:23:57 > 0:23:59They own an estate agency in north London,
0:23:59 > 0:24:03but decided to head south of the river to take on this project.
0:24:06 > 0:24:09So, you're brothers, you work together, you invest together,
0:24:09 > 0:24:12you're going to do this development project together...
0:24:12 > 0:24:15- Yeah, it's good that get on, yeah. - Do you get on?- Yeah, we do, luckily.
0:24:15 > 0:24:17- So...- There's the odd fight, but, yeah, generally...
0:24:17 > 0:24:19Generally good.
0:24:19 > 0:24:22So, how did they get on with the renovation here?
0:24:22 > 0:24:26They had a budget of 25 grand, but were hard to pin down on how
0:24:26 > 0:24:28soon they'd be ready for their first tenant.
0:24:30 > 0:24:34We're here 16 weeks after we first met them, to see
0:24:34 > 0:24:35how it's taken shape.
0:24:55 > 0:24:58David and James hadn't planned to do anything too radical to this
0:24:58 > 0:25:02house, but it certainly looks clean and fresh.
0:25:02 > 0:25:05However, their plan to keep it simple was thwarted
0:25:05 > 0:25:08when they discovered the house had signs of subsidence that had
0:25:08 > 0:25:11not shown up in the lending survey.
0:25:11 > 0:25:14The only thing to do was bite the bullet and get the work done.
0:25:15 > 0:25:16We've done quite a lot.
0:25:16 > 0:25:18We've ripped out a lot of the walls, because,
0:25:18 > 0:25:22when we took the wallpaper off, they were...you could just push them over.
0:25:22 > 0:25:24They were completely deteriorated.
0:25:24 > 0:25:27So, a lot of the internal walls are now stud walls,
0:25:27 > 0:25:29so they're better insulated and stronger
0:25:29 > 0:25:31and we even had to do some underpinning at the front
0:25:31 > 0:25:34of the house, but now the house is stable and a full refurb,
0:25:34 > 0:25:37really, a new kitchen, bathroom... everything.
0:25:37 > 0:25:40Added to all that, the roof had to be redone,
0:25:40 > 0:25:43they got permission to remove the apple tree as it was dying and
0:25:43 > 0:25:47there were issues with the floors and new joists had to be installed.
0:25:47 > 0:25:50So, they really did have a fair whack to contend with.
0:25:53 > 0:25:56This was probably one of the rooms that had the most work done in it.
0:25:56 > 0:25:58The floor was very bowed because it had subsided, the front
0:25:58 > 0:26:01of the house had dipped, so, obviously, that's been brought up.
0:26:01 > 0:26:03Um, the fireplaces,
0:26:03 > 0:26:07when we finished it off we'll put cast-iron Victorian fireplaces
0:26:07 > 0:26:10in here and in here to give it a bit of character
0:26:10 > 0:26:12and, generally, we're very happy with it,
0:26:12 > 0:26:16so, whoever rents it or buys it off of us should be happy.
0:26:16 > 0:26:19I reckon they have every right to be pleased with this job, especially
0:26:19 > 0:26:22when they've had to contend with so many unexpected issues.
0:26:24 > 0:26:26Upstairs things look pretty good too.
0:26:41 > 0:26:43Having invested all this money in getting the house
0:26:43 > 0:26:48structurally sound, I'm wondering if the original plan has changed too.
0:26:48 > 0:26:51Well, at the moment, we're going to leave it with the current layout,
0:26:51 > 0:26:54probably rent it out for six months or a year
0:26:54 > 0:26:56in its current state and then, we've already been speaking to
0:26:56 > 0:27:00a planning consultant to do a side return and then extend upstairs
0:27:00 > 0:27:02and then we could move the bathroom upstairs,
0:27:02 > 0:27:06another bedroom upstairs, and then have a huge kitchen downstairs.
0:27:06 > 0:27:09Brilliant. I was hoping they'd go for that extension upstairs,
0:27:09 > 0:27:12but it's a really good idea to get the house in rental condition
0:27:12 > 0:27:14so they can be making money
0:27:14 > 0:27:18while the long process of planning permission takes its course.
0:27:18 > 0:27:21Money-wise, they had planned to spend 25,000,
0:27:21 > 0:27:24but that included moving the bathroom upstairs,
0:27:24 > 0:27:29and didn't include resolving a lot of the underlying issues they fixed.
0:27:29 > 0:27:32So, I'm interested to hear, how did their budget pan out?
0:27:34 > 0:27:38Quite a bit higher than that, yeah, about...nearer to 40.
0:27:38 > 0:27:40That is quite a significant overspend,
0:27:40 > 0:27:44but not only have they had to do all that structural work, they've
0:27:44 > 0:27:49also had to re-plaster the walls and ceilings, and redo the plumbing.
0:27:49 > 0:27:53On a plus note, they have managed to get a new loo under the stairs.
0:27:53 > 0:27:55This hasn't been a straightforward job for
0:27:55 > 0:27:58the two estate agent brothers so, after all that,
0:27:58 > 0:27:59do they still get on?
0:27:59 > 0:28:02Generally, yes, but there's been a few things where...
0:28:02 > 0:28:05- But we don't argue, we sort of discuss it.- Yeah.
0:28:05 > 0:28:08So, it's...there's no fists involved.
0:28:09 > 0:28:13Well, I'm certainly glad this didn't prove to be a "Rocky" experience!
0:28:13 > 0:28:15MUSIC: "Eye of the Tiger" by Survivor
0:28:15 > 0:28:20And before we invite two more estate agents to the property,
0:28:20 > 0:28:23did the brothers get involved with doing the work here?
0:28:23 > 0:28:26'We're more of a supervisory role, but we do...we are here quite
0:28:26 > 0:28:30'often, so we'll come in sort of every other day to check.'
0:28:30 > 0:28:34Regarding hands-on, I barely know how to pick a screwdriver up, so...
0:28:35 > 0:28:39Well, he wouldn't want to, um, screw it up, would he?
0:28:39 > 0:28:43Building skills aside, have the pair of siblings proved themselves
0:28:43 > 0:28:46up to scratch with the property development side of things?
0:28:46 > 0:28:50That larger than expected renovation cost of 40,000 added to
0:28:50 > 0:28:56the purchase price of 436,000 brings their total spend to £476,000.
0:28:59 > 0:29:02We asked two local property experts for their opinion.
0:29:02 > 0:29:06First up, the agent who viewed it with us last time.
0:29:06 > 0:29:09I think, for the rental market, it's done perfectly, very neutral,
0:29:09 > 0:29:12very simple, nice finish
0:29:12 > 0:29:13in terms of basic finish.
0:29:13 > 0:29:16Tenants can imagine themselves living in the property
0:29:16 > 0:29:17and bringing their own furniture
0:29:17 > 0:29:20and putting a bit of a spin on it for themselves.
0:29:20 > 0:29:23First impressions are very nice property. The owners have
0:29:23 > 0:29:26refurbished it to a good standard and I don't think they could
0:29:26 > 0:29:29have done anything different to make the price increase.
0:29:29 > 0:29:30As for now, the plan is rental,
0:29:30 > 0:29:34so what do these experts think the brothers could charge?
0:29:34 > 0:29:38I'd look to market this at £2,100 per calendar month.
0:29:38 > 0:29:40The rental figure that this could achieve is
0:29:40 > 0:29:42around £2,000 per calendar month.
0:29:42 > 0:29:45That's sort of £500 a week, so...
0:29:45 > 0:29:47more or less, yeah, that sounds about right.
0:29:47 > 0:29:53That £2,000 per calendar month would give them a yield of 5%, but what
0:29:53 > 0:29:57if they did an about turn and decided to sell it here and now.
0:29:57 > 0:29:59What price could they fetch?
0:29:59 > 0:30:02I believe they could sell this property for £600,000.
0:30:02 > 0:30:06If I was to market this property now, I'd market it around £600,000.
0:30:06 > 0:30:09We were saying 575 to 600, so...
0:30:09 > 0:30:13Yeah, and taking into consideration the sales market's gone a bit
0:30:13 > 0:30:16crazy over the last...
0:30:16 > 0:30:18four to six months, everything's going for asking
0:30:18 > 0:30:20and over asking price.
0:30:20 > 0:30:25If the property sold now at 600,000, the boys could make
0:30:25 > 0:30:29a whopping £124,000 pre-tax and expenses profit.
0:30:29 > 0:30:35However, they have decided to try and sell the house for £625,000,
0:30:35 > 0:30:39so they could be looking at a potentially even larger return,
0:30:39 > 0:30:42and I think I can guess the answer to my next question.
0:30:42 > 0:30:45Will they be doing this sort of thing together again?
0:30:46 > 0:30:47- Yeah.- Yeah.- I think so.
0:30:47 > 0:30:50I think we're stuck with each other for life now.
0:30:58 > 0:31:00Well, head across the Tamar Bridge or
0:31:00 > 0:31:02the Torpoint Ferry from Plymouth in Devon
0:31:02 > 0:31:06and you find yourself somewhere they call the forgotten Cornwall.
0:31:06 > 0:31:09Oh! I tell you what, it's a bit...
0:31:09 > 0:31:11Forget it! Forget the weather!
0:31:11 > 0:31:13# Waves...
0:31:15 > 0:31:18# And goodbyes...
0:31:19 > 0:31:24Plymouth is only ten miles away as the crow flies, or is blown on a day
0:31:24 > 0:31:27like today, but, with the winding country roads
0:31:27 > 0:31:31and a chain-link ferry, the journey can take up to an hour.
0:31:31 > 0:31:34It was in this Cornish corner, south of Torpoint,
0:31:34 > 0:31:37that I found the pretty village of Kingsand.
0:31:37 > 0:31:41Steep, narrow streets lined with charming period houses, where even
0:31:41 > 0:31:46a two-bedroom property will set you back between £240,000 and £250,000.
0:31:46 > 0:31:50Not cheap for Cornwall, but the area is surrounded by a breathtaking
0:31:50 > 0:31:53coastline often drenched in beautiful Cornish sunshine.
0:31:53 > 0:31:57Well, if you're lucky. I'm not, I've had to get a new brolly!
0:31:57 > 0:31:58Well, on a day like today,
0:31:58 > 0:32:02you are really not seeing Kingsand at its best, because,
0:32:02 > 0:32:08when the sun's shining, this is an absolutely charming little spot.
0:32:08 > 0:32:1117th century traditional Cornish fishing village with
0:32:11 > 0:32:15meandering streets, charming houses, and, huh...
0:32:15 > 0:32:19You know, as much character as you could ever wish for and, joy
0:32:19 > 0:32:23of joys, the property I'm here to see is actually a traditional home.
0:32:23 > 0:32:29It's a two-bedroomed cottage at a guide price of £120,000 to £140,000,
0:32:29 > 0:32:32which, for Kingsand, I reckon, could be extremely good value for money.
0:32:32 > 0:32:36The only one way to find out is to take a look inside.
0:32:36 > 0:32:38- FOGHORN BLOWS - Oh! There's a foghorn.
0:32:38 > 0:32:40It really is a ropey day.
0:32:41 > 0:32:43Oof! Glad to get out of that.
0:32:43 > 0:32:46Well, here's a big bonus, especially on a day like today.
0:32:46 > 0:32:49Straight off the road into, not a living room, as you might have
0:32:49 > 0:32:52expected for this kind of cottage here,
0:32:52 > 0:32:56but into a hallway, which means, at least on a day like today, as
0:32:56 > 0:32:59I said, you've got somewhere to put your brolly, your coats or whatever.
0:32:59 > 0:33:00Your lounge is there.
0:33:00 > 0:33:04Um, it's looking a little bit in need of some tender loving care,
0:33:04 > 0:33:06but some really nice original features.
0:33:06 > 0:33:09That fireplace, you know, probably going back to the 1920s or
0:33:09 > 0:33:11whatever, but a nice-sized front lounge.
0:33:11 > 0:33:17Down this fairly narrow corridor and then into your kitchen area.
0:33:17 > 0:33:19Off it, the stairs up to your bedrooms, I mean, it's a
0:33:19 > 0:33:23fairly traditional layout and this wood, again, very traditional
0:33:23 > 0:33:26for this type of property and looks lovely stripped back.
0:33:26 > 0:33:29It's probably got some pitch pine underneath there,
0:33:29 > 0:33:30but the kitchen itself...
0:33:30 > 0:33:34A bit lacking in units, but it's a nice size and, again, you know,
0:33:34 > 0:33:39given the facade of the property, quite a surprisingly large space.
0:33:39 > 0:33:42Something which won't be to everyone's liking, that is
0:33:42 > 0:33:46the only bathroom and toilet in the property. Could you live with that?
0:33:46 > 0:33:49I think you probably could. There might be space for it upstairs.
0:33:49 > 0:33:51Only one way to find out.
0:33:51 > 0:33:55It's a fairly traditional two-up, two-down cottage with lots of period
0:33:55 > 0:33:58features and potentially bags of character waiting to be unearthed.
0:33:58 > 0:34:02With some loving renovation and redecoration in this cottage,
0:34:02 > 0:34:07you could certainly bring new life to this old salty seadog.
0:34:07 > 0:34:10Well, even just walking up the stairs where the carpet is
0:34:10 > 0:34:13very threadbare, you can see the wood underneath.
0:34:13 > 0:34:15I reckon that might be elm, which they
0:34:15 > 0:34:17often used for staircases,
0:34:17 > 0:34:20and up here I'd like to see these floors stripped back.
0:34:20 > 0:34:23I bet there's absolutely gorgeous floorboards under here
0:34:23 > 0:34:26and you get that sense with this place that it's just waiting
0:34:26 > 0:34:30to be unearthed in lots of ways. Look at this...
0:34:30 > 0:34:34years of horrible white paint on this door. Have it dip-stripped.
0:34:34 > 0:34:37You just get so much character back into the place. What have we got
0:34:37 > 0:34:39up here? A good-sized double bedroom at the front.
0:34:39 > 0:34:44Smaller sized single bedroom at the back, but, you know, again, it's not
0:34:44 > 0:34:49a huge cottage, and yet, it doesn't feel too claustrophobic inside.
0:34:49 > 0:34:52That whole bathroom question, is there space to move it up here?
0:34:52 > 0:34:53I don't think so.
0:34:53 > 0:34:56I mean, possibly, but, for the sake of it,
0:34:56 > 0:35:01I'd pretty much leave it where it is and, again, a really nice thing.
0:35:01 > 0:35:04Some of the original windows and views, not of the sea,
0:35:04 > 0:35:08but at least some interesting rooftops of Kingsand.
0:35:08 > 0:35:11And I think that's the real appeal of this place.
0:35:11 > 0:35:15Kingsand is wonderful even on the wettest, windiest day of the year.
0:35:15 > 0:35:18This cottage just needs to be warm, cosy, full of character
0:35:18 > 0:35:21and loved all over again.
0:35:21 > 0:35:23However, the cottage's idyllic location also brings
0:35:23 > 0:35:27a burden of responsibility for the new owners.
0:35:27 > 0:35:29The house is in a conservation area,
0:35:29 > 0:35:31so what does that mean in terms of what you can do with it?
0:35:31 > 0:35:34Well, it's not quite as restrictive, say,
0:35:34 > 0:35:36as if it was a listed building,
0:35:36 > 0:35:40but what it's basically saying is that the area is of interest
0:35:40 > 0:35:43in some way - historical, traditional, whatever it might be.
0:35:43 > 0:35:44So, in general,
0:35:44 > 0:35:47it's the exterior of the property that the planners are going
0:35:47 > 0:35:49to be most concerned about,
0:35:49 > 0:35:53and so things like changing the windows is going to be a big no-no.
0:35:53 > 0:35:56Inside, you can do pretty much what you want.
0:35:56 > 0:35:58One thing you might want to do for sure inside is...
0:35:59 > 0:36:02..change the heating system.
0:36:02 > 0:36:03I love this!
0:36:03 > 0:36:07This is an absolutely fantastically beautiful, original,
0:36:07 > 0:36:11I think probably Georgian, fireplace and, in front of it,
0:36:11 > 0:36:17this charming 1970s, 1980s storage heater.
0:36:18 > 0:36:21(Brilliant. The fact that they put it in front of that!)
0:36:23 > 0:36:30# Why...why...why... #
0:36:30 > 0:36:36Why indeed! Some features like this fireplace are timeless.
0:36:36 > 0:36:40The interior period features are part of the overall appeal
0:36:40 > 0:36:41and need to be preserved,
0:36:41 > 0:36:45so it's not just the outside of the property that needs care.
0:36:45 > 0:36:48I think this is a charming house packed with potential
0:36:48 > 0:36:53for a very reasonable guide price of 120,000 to 140,000, and I love it!
0:36:54 > 0:36:57# I get misty
0:36:57 > 0:37:01# The moment you're near... #
0:37:01 > 0:37:05Does the local property expert who helps sell it agree with me?
0:37:05 > 0:37:07This is a stunning cottage in the making.
0:37:07 > 0:37:10It needs everything doing to it from a kitchen to bathroom
0:37:10 > 0:37:12redecoration, etc, but its location,
0:37:12 > 0:37:15and being so close to the sea, is wonderful.
0:37:15 > 0:37:18Being in a conservation area, it's going to be tricky to go
0:37:18 > 0:37:21knocking down walls, moving staircases, etc, so you'll have to
0:37:21 > 0:37:24work very closely with the conservation officer if you decide
0:37:24 > 0:37:26to do a lot of things to the property.
0:37:27 > 0:37:29Yup, there's going to be a few hoops to jump through,
0:37:29 > 0:37:34but once the work is done, what does he think it could be worth?
0:37:34 > 0:37:37If the property was to be marketed in a finished state, it would
0:37:37 > 0:37:41fetch somewhere in the region of £225,000 to probably £250,000.
0:37:43 > 0:37:46So, what would you do with this cottage in Kingsand?
0:37:46 > 0:37:48Well, it obviously needs a bit of tender loving care,
0:37:48 > 0:37:52but you cannot criticise the location.
0:37:52 > 0:37:56This is a fantastic place, either as maybe a holiday home,
0:37:56 > 0:37:58a holiday let or somewhere to live.
0:37:58 > 0:38:02Lots of options and I'm sure it was a hugely popular lot
0:38:02 > 0:38:04when it went under the hammer.
0:38:04 > 0:38:08Who's going to do the whole room a favour and bid 130 to get it going?
0:38:08 > 0:38:11'Not surprisingly, bidders were quick off the mark
0:38:11 > 0:38:14'with this property and there was a lot of interest.
0:38:14 > 0:38:17'Let's join the bidding at 172,000.'
0:38:17 > 0:38:18172 I've got.
0:38:18 > 0:38:20And a half. Don't look at me like that.
0:38:20 > 0:38:22173.
0:38:23 > 0:38:25Half. 173 and a half.
0:38:25 > 0:38:27174. 174.
0:38:27 > 0:38:31175. Fresh face!
0:38:31 > 0:38:33175 and a half.
0:38:33 > 0:38:36176. Another new face.
0:38:36 > 0:38:37176 and a half.
0:38:37 > 0:38:41177. 177 and a half on my right now.
0:38:41 > 0:38:43178.
0:38:43 > 0:38:45At 178.
0:38:45 > 0:38:47179. 179.
0:38:47 > 0:38:51180. Let's find out at 180. At 180. At 180.
0:38:51 > 0:38:56181. 181. At 182. 183. 183.
0:38:56 > 0:39:01184. I'm looking for 5. We'll take a half, but at 184 first time,
0:39:01 > 0:39:03184 second time,
0:39:03 > 0:39:06at 184 and done.
0:39:06 > 0:39:08Sir, yours.
0:39:08 > 0:39:13And fending off the competition with that final bid of 184,000 was Mike.
0:39:13 > 0:39:16His excited daughter Justine was just visible.
0:39:16 > 0:39:22# Somewhere beyond the sea
0:39:22 > 0:39:25# Somewhere waiting for me... #
0:39:25 > 0:39:28Mike was accompanied by Justine and his other daughter
0:39:28 > 0:39:29Sarah to the auction,
0:39:29 > 0:39:34but it was Sarah who came along with her dad to the property to meet us.
0:39:34 > 0:39:37Mike is retired from the building supplies business
0:39:37 > 0:39:40and lives with his wife in Somerset.
0:39:40 > 0:39:44- Sarah, Mike, great to meet you both. - Hi.- Hello.- Congratulations!
0:39:44 > 0:39:46Tell me why you wanted to buy it.
0:39:46 > 0:39:50Well, Sarah lives in the village and this is really bought
0:39:50 > 0:39:52so that my wife and I can come down
0:39:52 > 0:39:56and spend some time in the village with the grandson, but, also,
0:39:56 > 0:39:58our youngest daughter, Justine, used to work in the village
0:39:58 > 0:40:01and she's keen to come back here at some stage, so...
0:40:01 > 0:40:05- Right.- It may well be some time in the future she will move in.
0:40:05 > 0:40:08So, there's a strong family history with Kingsand then,
0:40:08 > 0:40:11- is there?- Yes.- Well, we've been here about 20 years.- Wow.- Yeah.
0:40:11 > 0:40:15- The idea of this then is keep it in the family...- Yes.
0:40:15 > 0:40:18..and a bit of flexibility in what you're going to do with it.
0:40:18 > 0:40:21Whether my wife and myself come down here to live permanently some
0:40:21 > 0:40:24time in the future, that may be a possibility, but not at this stage.
0:40:24 > 0:40:27But also Just is desperate to move back
0:40:27 > 0:40:30and it's really difficult to get an affordable house in this area.
0:40:30 > 0:40:33- Right.- So, when it came up for auction, it was just like,
0:40:33 > 0:40:36- "Oh, my God, I've got to go for this!"- Right, so,
0:40:36 > 0:40:38how are you going to decide what's going to happen?
0:40:38 > 0:40:41I mean, it sounds like Justine's going to have the first...
0:40:41 > 0:40:43the most powerful influence on what happens! Is it?
0:40:43 > 0:40:45We have a committee.
0:40:46 > 0:40:49So, it could be a holiday home, or a new house for Justine,
0:40:49 > 0:40:51or for Mike and his wife. Huh!
0:40:51 > 0:40:54I'd love to be a fly on the wall for those committee meetings!
0:40:54 > 0:40:57One thing is for sure, they're going to turn it into a family
0:40:57 > 0:41:01friendly home and Mike has already worked out his top priority.
0:41:03 > 0:41:06The plan is...the EPC certificate for this property is quite poor.
0:41:06 > 0:41:09- It's an F.- So, that's the energy performance certificate.
0:41:09 > 0:41:12That's right, it's an F, which is just one step up above from the
0:41:12 > 0:41:16bottom, so, the plan is to obviously make it more energy efficient.
0:41:16 > 0:41:18I'm looking to replace the windows as well.
0:41:18 > 0:41:22Currently, they are a single glaze sash windows.
0:41:22 > 0:41:24I'm looking to replace them with double glaze sash windows.
0:41:24 > 0:41:26How difficult are they to source these days?
0:41:26 > 0:41:30Well, I did contact the local authorities to see what the
0:41:30 > 0:41:34rules and regs were, whether I could replace the windows under
0:41:34 > 0:41:37building regs, or whether I would need full planning.
0:41:37 > 0:41:40So, it may well be, if it's going to be difficult,
0:41:40 > 0:41:43- I'll actually use secondary glazing...- Right.
0:41:43 > 0:41:46..on the inside, which is normally used in conservation areas
0:41:46 > 0:41:47and on listed buildings.
0:41:49 > 0:41:51When the weather's like this,
0:41:51 > 0:41:53an energy performance certificate seems like a priority
0:41:53 > 0:41:58and it's something you must have for a potential buyer or tenant.
0:41:58 > 0:42:02A is, not surprisingly, the best rating, while G is at the bottom.
0:42:02 > 0:42:06The rating tells you how energy efficient the house is and in these
0:42:06 > 0:42:10days of high energy costs, an energy efficient property is a must,
0:42:10 > 0:42:14so I'm glad Mike is thinking about making the place well-insulated.
0:42:14 > 0:42:19He plans to totally renovate the property in two to three months,
0:42:19 > 0:42:23so, what kind of money does he hope to spend?
0:42:23 > 0:42:26It would say it would cost 20,000 to 25,000 to, um...
0:42:27 > 0:42:29- ..to renovate it. - What about floor coverings then?
0:42:29 > 0:42:32Because I'd love to see what's underneath the carpets.
0:42:32 > 0:42:35- I bet that's beautiful floorboards. - I'm going to take the carpets up,
0:42:35 > 0:42:39obviously, upstairs and down the stairs as well.
0:42:39 > 0:42:41If they're in good condition, then,
0:42:41 > 0:42:44- obviously, we may well buff them up. - Yeah.
0:42:44 > 0:42:48Downstairs, probably a wood floor in the lounge, a wood floor in
0:42:48 > 0:42:52the hall, ceramic tiles here in the kitchen leading out to the bathroom.
0:42:52 > 0:42:54Sounds good. Is that going to meet with
0:42:54 > 0:42:57the committee's approval, do you think?
0:42:57 > 0:42:58Yes!
0:42:58 > 0:42:59It will, it will, it will.
0:42:59 > 0:43:03Let's just hope that we're on speaking terms when you come back!
0:43:03 > 0:43:06- Congratulations!- Thank you. - I can't wait to see how you get on.
0:43:06 > 0:43:07Well done.
0:43:07 > 0:43:08Thank you.
0:43:10 > 0:43:12Well, it sounds like an absolutely ideal
0:43:12 > 0:43:16purchase for Sarah, Mike, Justine, and the whole family.
0:43:16 > 0:43:19And it will be keeping the whole family in Kingsand,
0:43:19 > 0:43:20a beautiful place too.
0:43:20 > 0:43:23Lots of work to be done, glad to hear Mike talking
0:43:23 > 0:43:26all about insulation, but the rest of the house, the character,
0:43:26 > 0:43:27the feel, how will it be?
0:43:27 > 0:43:29Well, you can find out later in the show.
0:43:33 > 0:43:36Well, we always hope that the buyers have set themselves realistic
0:43:36 > 0:43:40- timescales and budgets. - There's only one way to find out.
0:43:40 > 0:43:43Let's catch up with them and see what they've done.
0:43:43 > 0:43:46Earlier in the programme, this three-to-four bedroom terrace
0:43:46 > 0:43:50was bought for £70,000 by Jay and his dad, Bob.
0:43:51 > 0:43:56He and Jay, who is just 18-years-old, own three properties
0:43:56 > 0:44:00between them and Jay bought his first in his final year at school.
0:44:00 > 0:44:02I've always had a passion about property
0:44:02 > 0:44:05and you wanted to get on board with it, didn't you?
0:44:05 > 0:44:07I knew he was serious in the summer when we went on holiday
0:44:07 > 0:44:11and all he did was read about property and kept coming out
0:44:11 > 0:44:15with buy-to-lets and below market values and everything else.
0:44:15 > 0:44:17So, I knew that's what he wanted to do.
0:44:17 > 0:44:20Jay and his dad were in discussions with a family
0:44:20 > 0:44:23friend at the local football club who were keen to rent
0:44:23 > 0:44:26the property to house some of their players.
0:44:26 > 0:44:27# Football! Football!
0:44:27 > 0:44:30# That's a bunch that go in places
0:44:30 > 0:44:33# They got some guys with the cutest faces... #
0:44:33 > 0:44:35But they didn't want to wait for extra time,
0:44:35 > 0:44:38so, Jay and his dad hoped to complete the work in two weeks
0:44:38 > 0:44:42and set a budget of just £2,500.
0:44:43 > 0:44:45So, you've just finished your A levels?
0:44:45 > 0:44:46Just finished my A levels, yeah.
0:44:46 > 0:44:48So, are you planning to go on to university?
0:44:48 > 0:44:51I'm having a gap year out to begin with, having a look round property,
0:44:51 > 0:44:54see if I can get a portfolio started, and then
0:44:54 > 0:44:56come back and re-evaluate at the end of the year.
0:44:58 > 0:45:01And now, just three weeks later, this father and son team
0:45:01 > 0:45:04are running out again for the second half of the story.
0:45:07 > 0:45:09During our half-time break,
0:45:09 > 0:45:12the property needed no major treatments from the physio,
0:45:12 > 0:45:14but, on advice of the kit man,
0:45:14 > 0:45:17a washing machine has been installed in the kitchen, and a cooker.
0:45:21 > 0:45:23The first floor bedrooms have been decorated
0:45:23 > 0:45:26and the vibrant coloured carpets have been replaced.
0:45:30 > 0:45:33When we bought the house, the kitchen was ready to go, so we didn't make
0:45:33 > 0:45:36any changes to it whatsoever. Due to the contract we agreed with
0:45:36 > 0:45:39Ilkeston Football Club, I had to fit a cooker and washing machine
0:45:39 > 0:45:42to suit them. The other snag we hit was the boiler we had to fit.
0:45:42 > 0:45:45As you can see in the kitchen, there's not much room at all.
0:45:45 > 0:45:47So, we had to think of another idea.
0:45:47 > 0:45:50And that was outside, at the back of the property.
0:45:50 > 0:45:54This is the solution as to where we decided to fit the boiler.
0:45:56 > 0:45:58Originally, the property was fitted with a back boiler.
0:45:58 > 0:46:01After close inspection, looking at it, it was found out that it
0:46:01 > 0:46:03was more cost-efficient to go for the combi boiler.
0:46:03 > 0:46:06If we did try to change the layout of the property internally
0:46:06 > 0:46:08in the future, having the boiler here in the outhouse
0:46:08 > 0:46:10means that it would give us space to work with
0:46:10 > 0:46:12so it wouldn't inhibit what we did decide to do.
0:46:12 > 0:46:15A property housing more than three unrelated people needs
0:46:15 > 0:46:19a licence, and there are regulations regarding fire-proofing doors
0:46:19 > 0:46:23and so on, as well as regulations about facilities that need to
0:46:23 > 0:46:25be met, so you do need to bear that in mind.
0:46:25 > 0:46:28It's always worth checking with your local council
0:46:28 > 0:46:31whether you need a licence for a house of multiple occupancy.
0:46:32 > 0:46:35Two lads from the football academy are moving in,
0:46:35 > 0:46:38in the next few days, and it's definitely a handy location.
0:46:40 > 0:46:42It's just the proximity of the ground to here.
0:46:42 > 0:46:46It's only 200 or 300 yards and that would mean the club would be
0:46:46 > 0:46:50able to keep a close eye on them and make sure everything is going well.
0:46:50 > 0:46:54And how does Rob think Jay has got on with this property?
0:46:54 > 0:46:58The first one he's taken on since leaving school.
0:46:58 > 0:47:01Well, up to now, everything seems to have gone pretty well,
0:47:01 > 0:47:04like, he's done all the hands-on work, helping the plumbers and the
0:47:04 > 0:47:07electricians, which are my brother and my nephew that have been
0:47:07 > 0:47:11working on the property. My nephew's a professional electrician,
0:47:11 > 0:47:13he came in, looked at everything for us.
0:47:13 > 0:47:15We did have a new consumer unit
0:47:15 > 0:47:20and then he's wired in all the smoke detectors for us as well.
0:47:20 > 0:47:24What effect did the combi boiler installation, the electrical work,
0:47:24 > 0:47:28and the white goods in the kitchen have on their budget?
0:47:28 > 0:47:31Budget wise, it seems to be sort of pretty on track what
0:47:31 > 0:47:35we thought we'd spend initially. We said 2,500.
0:47:35 > 0:47:37It's been a little bit more than that,
0:47:37 > 0:47:40but, yeah, we're very pleased with what we've spent up till now.
0:47:40 > 0:47:44Well, sticking with the spend of 2,500, with the £70,000
0:47:44 > 0:47:47they paid at auction, it takes their total investment to £72,500.
0:47:51 > 0:47:54We invited two local estate agents to come and have a look
0:47:54 > 0:47:56at the property, to find out what they think
0:47:56 > 0:47:57of the finished product.
0:47:57 > 0:47:59Since I last visited the property,
0:47:59 > 0:48:01I noticed the owners have put a new boiler in
0:48:01 > 0:48:05and re-carpeted the property upstairs.
0:48:05 > 0:48:07The property, in all fairness, was in good condition
0:48:07 > 0:48:08when they purchased it
0:48:08 > 0:48:11and not much was really needed to be done.
0:48:11 > 0:48:13I think this property will appeal
0:48:13 > 0:48:16to the rental market with its three bedrooms maximising with
0:48:16 > 0:48:18the third bedroom in the attic,
0:48:18 > 0:48:20as well as a separate office area.
0:48:20 > 0:48:24The property is in perfect condition for letting out or reselling,
0:48:24 > 0:48:27however, if the owner wanted to achieve a maximum
0:48:27 > 0:48:32price for selling, we would recommend fitting a new kitchen and bathroom.
0:48:32 > 0:48:35And what about rental income?
0:48:35 > 0:48:39If this property was to be placed on the rental market, I would expect
0:48:39 > 0:48:44to achieve anywhere within the region of £400 to £450 per calendar month.
0:48:44 > 0:48:45I would put this property on
0:48:45 > 0:48:49the rental market for £400 to £450 per calendar month.
0:48:49 > 0:48:50BOB: We were advised sort of
0:48:50 > 0:48:52450 to 550.
0:48:52 > 0:48:55Um, and we've managed to get top end of that already
0:48:55 > 0:48:59- and we've let it out within three weeks.- Yeah, it's already confirmed.
0:48:59 > 0:49:01We're ready to go at that top-end price, so...
0:49:01 > 0:49:04525 per month is very good for us.
0:49:04 > 0:49:08Yes, that is good, especially given how little work was carried out.
0:49:08 > 0:49:12That rental figure of 525 per calendar month will give
0:49:12 > 0:49:16this young entrepreneur and his dad a yield of 9%,
0:49:16 > 0:49:18a very handsome return.
0:49:18 > 0:49:20What about resale values?
0:49:20 > 0:49:25Is it worth more than the £72,500 invested so far?
0:49:26 > 0:49:30With the amount of refurbishments that have been done, you'd look
0:49:30 > 0:49:33to hopefully achieve anywhere within the region of £70,000 to £75,000.
0:49:33 > 0:49:36If I was to put this property on the market,
0:49:36 > 0:49:39I would put it on the market at £78,000.
0:49:39 > 0:49:42And it means that the property in its current condition would
0:49:42 > 0:49:45generate a potential loss of £2,500 to
0:49:45 > 0:49:50a profit of £5,500 before taxes and expenses.
0:49:50 > 0:49:53But if a new bathroom and the kitchen had been installed,
0:49:53 > 0:49:56the agents think the valuation could then reach between
0:49:56 > 0:49:58£80,000 and £87,000.
0:50:00 > 0:50:02I mean, we haven't done any major work to overhaul it to get it
0:50:02 > 0:50:05back on to the top-end, but if we were to come in and sell it,
0:50:05 > 0:50:08I'd need things like the kitchen and the bathroom to be redone
0:50:08 > 0:50:10and then, hopefully, achieve that top-end price.
0:50:10 > 0:50:14And judging from the properties Jay is hoping to add to his portfolio,
0:50:14 > 0:50:19it sounds like he might have put university on the backburner.
0:50:19 > 0:50:21Hopefully, four or five in the next year, year and a half,
0:50:21 > 0:50:22and then, hopefully,
0:50:22 > 0:50:26forecasting going forward it's going to be replicating that year on year.
0:50:26 > 0:50:28You're going to view another one this afternoon.
0:50:28 > 0:50:29- Yeah, yeah.- See how that goes.
0:50:33 > 0:50:37So, a very successful father and son partnership there.
0:50:37 > 0:50:40How did our father and daughter's do here in the
0:50:40 > 0:50:45beautiful Cornish village of Kingsand? Earlier in the programme,
0:50:45 > 0:50:50this two-bed cottage was bought for £184,000 by Mike
0:50:50 > 0:50:52and his daughter Sarah, who lives in the village,
0:50:52 > 0:50:55and her sister, Justine, who used to live there.
0:50:55 > 0:50:59Mike has recently retired from work in the building supplies industry.
0:50:59 > 0:51:02He lives in Somerset with his wife Janet.
0:51:02 > 0:51:04This is really bought so that my wife
0:51:04 > 0:51:07and I can come down and spend some time in the village with
0:51:07 > 0:51:10the grandson, but also our youngest daughter, Justine,
0:51:10 > 0:51:14used to work in the village and she's keen to come back here at some stage.
0:51:14 > 0:51:17- Right.- So, it may well be some time in the future she will move in.
0:51:17 > 0:51:20The idea of this then is keep it in the family...
0:51:20 > 0:51:21- Yes.- And a bit of flexibility
0:51:21 > 0:51:24and you don't know quite what you're going to do with it.
0:51:24 > 0:51:27He'd set a timescale for the work of two to three months
0:51:27 > 0:51:31and budgeted £20,000 to £25,000.
0:51:31 > 0:51:36It was going to be a very democratic refurbishment, as Mike and Sarah and
0:51:36 > 0:51:39Justine were going to have family committee meetings to
0:51:39 > 0:51:42determine the look and who could use the cottage.
0:51:45 > 0:51:47It's now eight months later.
0:51:47 > 0:51:49Inside, it's not quite finished.
0:51:49 > 0:51:51The structural work has been done
0:51:51 > 0:51:55and the public areas are still to be floored and decorated.
0:51:57 > 0:52:01But, when the floor has been completed, like in the not one,
0:52:01 > 0:52:04but two en suite bathrooms, it's simply lovely.
0:52:08 > 0:52:10At the back, the storage sheds have gone.
0:52:12 > 0:52:15Bi-fold doors have replaced the former kitchen sink
0:52:15 > 0:52:17and the new kitchen has been created.
0:52:25 > 0:52:29This was originally the bathroom, we've extended it behind me about
0:52:29 > 0:52:32a metre, and put this new kitchen in which will have
0:52:32 > 0:52:35integrated appliances shortly.
0:52:35 > 0:52:38Then through here, this originally was the kitchen,
0:52:38 > 0:52:42we've knocked a hole through between the kitchen and the lounge,
0:52:42 > 0:52:43to make it a lounge/diner,
0:52:43 > 0:52:46so I think this now complements the property very well.
0:52:46 > 0:52:48Originally, there were two windows here,
0:52:48 > 0:52:51but now we've put a sliding, folding patio door.
0:52:51 > 0:52:54It's much lighter, we've got a cloakroom downstairs,
0:52:54 > 0:52:57which we didn't have before, and we've got two en suites upstairs
0:52:57 > 0:53:01so I think it really...it really finishes the property quite nicely.
0:53:01 > 0:53:04One of the issues about this house was that the bathroom was
0:53:04 > 0:53:07off the kitchen and I didn't think there was anywhere else to put it!
0:53:10 > 0:53:14But Mike has managed to get two en suites up here. Amazing!
0:53:18 > 0:53:20And, while they've managed to get all the mod cons you could
0:53:20 > 0:53:25ask for, they have retained the cottage's old world charm.
0:53:25 > 0:53:27From the outside, it's a pretty little cottage
0:53:27 > 0:53:29and it's just going to be really nice.
0:53:29 > 0:53:31It's going to be lovely and warm and cosy.
0:53:31 > 0:53:33It's just going to be a really nice house to live in.
0:53:35 > 0:53:39The cottage had almost the worst energy performance rating
0:53:39 > 0:53:42possible, and I was delighted Mike intended to make the property
0:53:42 > 0:53:45much more energy efficient.
0:53:45 > 0:53:48The building's been completely replastered.
0:53:48 > 0:53:52New ceilings, the floors have been repaired, insulated,
0:53:52 > 0:53:56the external walls have also been insulated internally as well.
0:53:57 > 0:54:00Mike had hoped to install new double-glazed windows, but
0:54:00 > 0:54:05the conservation officer insisted on the original sash windows remaining.
0:54:05 > 0:54:06Mike's had them refurbished.
0:54:06 > 0:54:09He's going to install new storage heaters
0:54:09 > 0:54:13and a log burning stove and, with the new insulation,
0:54:13 > 0:54:18he's hoping the energy efficiency should rise from F to C.
0:54:19 > 0:54:22Mike employed local builders and an electrician,
0:54:22 > 0:54:25but I wonder how much time he's spent on the project.
0:54:25 > 0:54:28Oh, I've been quite involved. I've knocked the plaster off the walls.
0:54:28 > 0:54:29I've taken down ceilings.
0:54:29 > 0:54:32I've been underneath the floor to woodworm treat them.
0:54:32 > 0:54:36I've actually spent three or four days a week here on site.
0:54:37 > 0:54:39And... Come on, Mike! Spill the beans!
0:54:39 > 0:54:43Has the family committee been a model of democracy?
0:54:43 > 0:54:47I think the committee worked quite well, which comprised of myself,
0:54:47 > 0:54:50my wife, Justine, my youngest daughter, and Sarah,
0:54:50 > 0:54:53but, at the end of the day, I had the casting vote.
0:54:54 > 0:54:57Yeah, we said how we liked it and then he went ahead
0:54:57 > 0:54:58and did what he wanted!
0:54:59 > 0:55:03Ah, well, I reckon it was a good call whoever made the decisions.
0:55:03 > 0:55:07'The family committee had agreed on a £20,000 to £25,000 budget,
0:55:07 > 0:55:11'but that wasn't allowing for any layout changes,
0:55:11 > 0:55:14'so what's that meant for their sums?'
0:55:14 > 0:55:17When we decided to change the layout, then, obviously,
0:55:17 > 0:55:21the cost went up, so we're looking now at spending around 34,000.
0:55:21 > 0:55:25With the £184,000 Mike paid at auction,
0:55:25 > 0:55:28it takes the total investment to £218,000.
0:55:30 > 0:55:33Time to find out what impressed two property experts
0:55:33 > 0:55:35in this seaside cottage.
0:55:35 > 0:55:38First, the auctioneer who sold it and viewed it originally.
0:55:38 > 0:55:40What I'm noticing with the work they've done so far
0:55:40 > 0:55:41is that the current owners
0:55:41 > 0:55:45are looking to keep a wealth of character within the property
0:55:45 > 0:55:47but installing a lot of the modern cons as well, so,
0:55:47 > 0:55:50that works really well and if they keep going along the same veins,
0:55:50 > 0:55:53this is going to be a stunning property when it's finished.
0:55:53 > 0:55:55I think the ground floor layout's very nice.
0:55:55 > 0:55:58They've done a very good job with opening it up. It's made the area
0:55:58 > 0:56:01much more sociable. By adding the kitchen on the back,
0:56:01 > 0:56:02it's given it more space as well.
0:56:02 > 0:56:05I was looking for a bathroom, couldn't find it and behind the
0:56:05 > 0:56:08louvred doors were two en suites, and the that works fantastically well.
0:56:08 > 0:56:11But have those features added value?
0:56:11 > 0:56:15Is the cottage worth more than the £218,000 invested?
0:56:15 > 0:56:18I would put this property on the market in the price region
0:56:18 > 0:56:20of £280,000 to £300,000.
0:56:20 > 0:56:23Once the property is totally refurbished, it should fetch
0:56:23 > 0:56:28somewhere in the region of £250,000, maybe up towards £300,000.
0:56:28 > 0:56:30Well, quite a range of valuations there,
0:56:30 > 0:56:34but, as it's not complete, easy to understand.
0:56:34 > 0:56:37The top valuation of 300,000 would generate
0:56:37 > 0:56:42a profit of 82,000 minus taxes and expenses.
0:56:42 > 0:56:45It's nice to know that you have added some value cos that's
0:56:45 > 0:56:49a positive thing, but I wonder also if Dad's maybe got a bit of a
0:56:49 > 0:56:53property developer bug, but I don't know if he's got any money left!
0:56:54 > 0:56:56Well, if he's looking for income,
0:56:56 > 0:57:00how much rental return could the cottage achieve?
0:57:00 > 0:57:02If the property was placed on the rental market, it could fetch
0:57:02 > 0:57:06somewhere in the region of £850 to £900 per calendar month.
0:57:06 > 0:57:10This property would rent for £800 to £900 per calendar month.
0:57:10 > 0:57:14If Mike did want to rent, that would give him a yield of around 5%.
0:57:14 > 0:57:18This is a lovely spot and although it's not Mike's plan,
0:57:18 > 0:57:21I'm betting this could make a good investment as a holiday let.
0:57:21 > 0:57:23Does the auctioneer agree?
0:57:24 > 0:57:27This property, in peak holiday season, could fetch
0:57:27 > 0:57:31somewhere in the region of, I reckon, £1,200 to £1,300 per calendar week.
0:57:31 > 0:57:32That sounds very encouraging
0:57:32 > 0:57:34if we do decide to let it during the holiday period.
0:57:36 > 0:57:40Somehow, I suspect Mike and his wife and their daughter, Justine,
0:57:40 > 0:57:43won't leave many weeks free, or will they?
0:57:43 > 0:57:46- MIKE:- I wouldn't say we'd be down here every week,
0:57:46 > 0:57:48but certainly reasonably frequently and, obviously, during the
0:57:48 > 0:57:52spring and summer, we'd spend even more time down here.
0:57:52 > 0:57:55One of our problems is we have four dogs and three chickens,
0:57:55 > 0:57:58so, we can't accommodate all four dogs here and we can't bring
0:57:58 > 0:58:01the chickens, so somebody will have to look after those at home.
0:58:05 > 0:58:08So, there you have it, another three properties to add to the archive.
0:58:08 > 0:58:11Yes, and there are always plenty more where they came
0:58:11 > 0:58:14from, as you'll see if you join us next time on Homes Under The Hammer.
0:58:14 > 0:58:15- Goodbye.- Goodbye.