0:00:02 > 0:00:04Hello. With the property market in a state of flux,
0:00:04 > 0:00:07you have to make your own decisions. You need to do your research,
0:00:07 > 0:00:10- and trust your instincts. - Yes, and you need to find out
0:00:10 > 0:00:12how the property market is performing.
0:00:12 > 0:00:15So, see for yourself. And one way you can do that
0:00:15 > 0:00:17is by visiting your local property auction.
0:00:42 > 0:00:45There's all sorts of property up for auction,
0:00:45 > 0:00:47thousands of lots available, every month.
0:00:47 > 0:00:51Yes, so why don't you go along to your local auction house and see what's for sale.
0:00:51 > 0:00:54Here's the properties we found for you on today's show.
0:00:56 > 0:01:01In Hertfordshire, this former police house brings on a fit of nostalgia.
0:01:01 > 0:01:04This serving hatch is so 1950s, isn't it?!
0:01:06 > 0:01:11In Ebbw Vale, Gwent, I uncover a new purpose for an old favourite.
0:01:11 > 0:01:16If you love bubblewrap like I do, you're going to love this lean-to.
0:01:16 > 0:01:21And in Derbyshire, the upstairs layout of this two bed house is, well, inconvenient.
0:01:21 > 0:01:27Basically the loo at that end and the bathroom at the front there.
0:01:27 > 0:01:29All these properties have been sold at auction.
0:01:29 > 0:01:32We'll find out who bought them, and what they paid for them,
0:01:32 > 0:01:35- when they went under the hammer. - Sold at the back!
0:01:39 > 0:01:42My property search brings me to Hertford,
0:01:42 > 0:01:45an affluent county town around 50 minutes by train from London.
0:01:45 > 0:01:49Its proximity to the capital makes it popular with commuters.
0:01:49 > 0:01:53And the average house price in this area is over £400,000.
0:01:53 > 0:01:57Is it really possible to find a bargain here?
0:01:57 > 0:02:00Well, the property I'm here to see was built in 1957
0:02:00 > 0:02:04when slinky springs and hula hoops were the toys of the day.
0:02:04 > 0:02:07When Elvis Presley was in the charts with All Shook Up.
0:02:07 > 0:02:12And Benny Hill hit our TV screens for the first time. This is it.
0:02:12 > 0:02:17The guide price was £250,000 for a three bed detached. Let's take a look.
0:02:17 > 0:02:21MUSIC: "Benny Hill Theme Tune"
0:02:23 > 0:02:26Well, it certainly seems pretty large from the outside.
0:02:26 > 0:02:29So what's the internal layout? Well, through the front door
0:02:29 > 0:02:33and a really nice large open sort of entrance area here,
0:02:33 > 0:02:35which is good news. A living room there.
0:02:35 > 0:02:41The stairs up to your bedrooms. Another living room/dining room to that side there.
0:02:41 > 0:02:44Down the corridor a bit further, a downstairs loo.
0:02:44 > 0:02:47I'm hoping there is one upstairs. So, a cloakroom area.
0:02:47 > 0:02:49Lots of places to hang your coats and everything.
0:02:49 > 0:02:53Immediately I'm getting the feeling this is a house with a lot of space.
0:02:53 > 0:02:59But also, I'm getting a feeling it's a house that hasn't really been touched very much since it was built.
0:02:59 > 0:03:01And nowhere more so than in the kitchen here.
0:03:01 > 0:03:06It definitely needs some new units. And whether or not you keep a few original features...
0:03:06 > 0:03:10This serving hatch is so 1950s, isn't it?!
0:03:10 > 0:03:15# Come on, pretty baby, let's a-move it and a-groove it... #
0:03:15 > 0:03:19There are definitely a few things to move along in this former police house.
0:03:19 > 0:03:23I wouldn't close up the hatch. I'd hammer down the whole wall.
0:03:23 > 0:03:27That might turn a small kitchen into a pleasant kitchen diner.
0:03:27 > 0:03:30And there's certainly plenty of space inside and outside,
0:03:30 > 0:03:32as it's built on a huge corner plot.
0:03:34 > 0:03:41The late 1950s may not have been a particular architectural highlight in the whole history of the world.
0:03:41 > 0:03:44Certainly you get that impression when you come out the back here.
0:03:44 > 0:03:47But what you have got is a really nice-sized garden.
0:03:47 > 0:03:51And I think ... creativity, that's what you need!
0:03:51 > 0:03:54Why not stick a conservatory on the back, a really big one?
0:03:54 > 0:03:59Open up those doors there from the living room, maybe into some great bifold doors.
0:03:59 > 0:04:01Really bring the garden into the house, the house into the garden.
0:04:01 > 0:04:06And suddenly, ponds, wildlife, trees in bloom, yeah, you're talking!
0:04:06 > 0:04:09# Oh, life could be a dream
0:04:09 > 0:04:13# If I could take you up in paradise up above... #
0:04:13 > 0:04:17This could be a fantastic home, but could also be a brilliant development opportunity,
0:04:17 > 0:04:20because it's on such a big chunk of land.
0:04:20 > 0:04:24To the side, this large slice of garden has been fenced off.
0:04:24 > 0:04:27And remember, this is a desirable area.
0:04:27 > 0:04:31The house is opposite a school, which might deter some,
0:04:31 > 0:04:35but it's set back from the road, so I don't think it's a dealbreaker by any means.
0:04:39 > 0:04:42Upstairs in this house that went to auction guided at 250,000,
0:04:42 > 0:04:46there's a large family bathroom and three good-sized bedrooms.
0:04:47 > 0:04:52Oh, look at that, lovely! More throwbacks to the 1950s.
0:04:52 > 0:04:55An old fireplace. No, actually, I don't think we'll turn it on,
0:04:55 > 0:04:58otherwise I think I might disappear into a big blue flash as it explodes.
0:04:58 > 0:05:03But you know what, here's a random idea - why not put like a picture frame around it and spray it?
0:05:03 > 0:05:07It just keeps an element of where the house originally came from.
0:05:07 > 0:05:10Oh, all right, don't then. But anyway, look, here is a bedroom.
0:05:10 > 0:05:13And it's like the other bedrooms up here, a really good size.
0:05:13 > 0:05:17Big enough, I think, to put some kind of an ensuite.
0:05:17 > 0:05:20You've got lots of space to play with. And that is good news.
0:05:20 > 0:05:23Right, I'm off to revisit my Elvis Presley collection.
0:05:23 > 0:05:28# I'm just a hunk, a hunk of burning love... #
0:05:28 > 0:05:32There's a lot to get hot under the collar about here.
0:05:32 > 0:05:34A big plot, big house and big potential.
0:05:36 > 0:05:40But with the guide price of 250,000, will a local estate agent
0:05:40 > 0:05:43think this '50s throwback is a viable proposition?
0:05:43 > 0:05:46I think it's got potential. It's a very good size.
0:05:46 > 0:05:49Nice good-sized rooms. You can extend on the back of it.
0:05:49 > 0:05:51You can extend on the side, going over the garage.
0:05:51 > 0:05:54So, yeah, it's a good blank canvas to work with, definitely.
0:05:54 > 0:05:58Well, this place is big enough for a 1950s big band.
0:05:58 > 0:06:00But once refurbished, in its current layout,
0:06:00 > 0:06:03will a resale be music to someone's ears?
0:06:03 > 0:06:07I think selling it as a three bed detached refurb, it's about £375,000.
0:06:07 > 0:06:11And if an extension were added, with one or two bedrooms,
0:06:11 > 0:06:13what effect might that have on the value?
0:06:13 > 0:06:18The ceiling price at the moment for this property is about £500,000 as a four or five bedroom detached.
0:06:18 > 0:06:22Would extra bedrooms mean a higher rent?
0:06:22 > 0:06:25As a three bedroom property, I would expect it to rent for about £1,200 a month.
0:06:25 > 0:06:28To rent it out as a four to five bed,
0:06:28 > 0:06:31it's got a maximum return of about £1,400-£1,500 a month.
0:06:31 > 0:06:36Well, it's a big house in a good area with lots of possibilities.
0:06:36 > 0:06:38Opposite the school, which might put some people off,
0:06:38 > 0:06:41but I don't think it's really a negative factor.
0:06:41 > 0:06:43Let's see who agreed when it went under the hammer.
0:06:43 > 0:06:46Lot 78 is attractive,
0:06:46 > 0:06:49well located, three bedroom detached house.
0:06:49 > 0:06:53I think we've got a telephone bid. 260 anywhere?
0:06:53 > 0:07:00If not, you tell me. 250, thank you very much. 255, anywhere?
0:07:00 > 0:07:04255. 260? 265.
0:07:04 > 0:07:07265, thank you. 270.
0:07:07 > 0:07:10275. 280.
0:07:10 > 0:07:13285, yeah? Thank you. 290.
0:07:13 > 0:07:16295.
0:07:16 > 0:07:20It's with a lady here on my right. The bid's at £290,000.
0:07:20 > 0:07:23Thank you, 300.
0:07:23 > 0:07:27With interest from a phone bidder continuing, we rejoin the auction a little later.
0:07:27 > 0:07:31It's with a lady, the bid's at £335,000.
0:07:31 > 0:07:34336. 337. 338.
0:07:34 > 0:07:40338? No? With the lady, been there all along, the bid's £337,000.
0:07:40 > 0:07:43337 for the first...
0:07:43 > 0:07:45337 for the second...
0:07:45 > 0:07:48337 for the third and final time.
0:07:48 > 0:07:51Are we all done? Sold! Well bought, 337.
0:07:51 > 0:07:55That final bid of £337,000 was made by Carolyn,
0:07:55 > 0:07:58who was at the auction with her partner, Alan.
0:07:58 > 0:08:01The couple live in Hertford and are both accountants.
0:08:01 > 0:08:03Carolyn recently took redundancy,
0:08:03 > 0:08:06so she'll be concentrating a lot of her efforts here.
0:08:06 > 0:08:12# There's a house on the corner... #
0:08:12 > 0:08:18I went to the property to meet her and find out what she had planned for this house on the corner.
0:08:18 > 0:08:21- Carolyn, good to meet you.- Thank you. - Congratulations.- Thank you.
0:08:21 > 0:08:23So tell me why you wanted to buy this place?
0:08:23 > 0:08:27My partner heard that somebody he works with
0:08:27 > 0:08:31had bought a place by auction, and he was very impressed.
0:08:31 > 0:08:34And so he started looking. And we went down to the auction.
0:08:34 > 0:08:38It's the first time we'd been to one. Having looked and viewed the property,
0:08:38 > 0:08:41we knew - we live in Hertford, so we know it's a nice town.
0:08:41 > 0:08:45And, you know, we know the area. So, um, we thought we'd give it a go.
0:08:45 > 0:08:47So have you ever done anything like this before?
0:08:47 > 0:08:52We've got a couple of properties that, um, we've refurbished,
0:08:52 > 0:08:56you know, sort of decorating and perhaps, new bathroom, kitchen,
0:08:56 > 0:09:01but nothing as big as this project, we're hoping this project will be.
0:09:01 > 0:09:04- In fact, he's even remortgaged our house to pay for it.- Wow!
0:09:04 > 0:09:09- So, why this particular house then? - The land, really.
0:09:09 > 0:09:15We're hoping to be able to split one big property into two three bedroom semis.
0:09:15 > 0:09:18- Wow! So what made you think of that? - Just land.
0:09:18 > 0:09:21I mean, there's a garage with nothing on top of it.
0:09:21 > 0:09:23We're bound to be able to put something on top of that.
0:09:23 > 0:09:25And there's semi-detached in the road and things.
0:09:25 > 0:09:28So we thought it might be worthwhile trying for that.
0:09:28 > 0:09:30Apart from those two other properties,
0:09:30 > 0:09:34Carolyn recently refurbished a flat, which she now lets out.
0:09:34 > 0:09:38Her son Adam is going to lend a hand on this.
0:09:38 > 0:09:44But there were some issues that threatened to arrest her ambitious plans for this development.
0:09:44 > 0:09:49When we looked at the legal pack, it did say the police had put something on there,
0:09:49 > 0:09:53cos it was an ex-police house, saying it could only be a one building residence.
0:09:53 > 0:09:56But we still bought it on that basis, but they were happy
0:09:56 > 0:10:00to drop that before we did the final transfer of monies.
0:10:00 > 0:10:03So at what point did you do negotiate that, after you'd agreed to buy it, like an exchange?
0:10:03 > 0:10:07Yes. Sort of between the auction and the final exchange.
0:10:07 > 0:10:11- Were you surprised they said yes? - We thought originally if it's got to go through planning,
0:10:11 > 0:10:14it doesn't really matter. But the solicitor says,
0:10:14 > 0:10:18"Look, ask them before we do that, and they might just remove it."
0:10:18 > 0:10:20And they were quite happy to do so.
0:10:20 > 0:10:25Result! So, a lesson there. If you don't ask, you don't get.
0:10:25 > 0:10:27And providing planning is granted,
0:10:27 > 0:10:31this house won't have to go through a trial separation.
0:10:31 > 0:10:33# Everything is twice as nice
0:10:33 > 0:10:36# Between me and you. #
0:10:39 > 0:10:42Carolyn's already had an architect draw up some draft plans
0:10:42 > 0:10:44to divide the house right down the middle,
0:10:44 > 0:10:48extending to the right for a kitchen and first floor bedroom.
0:10:48 > 0:10:52On the other side, an extension above the garage will provide bedroom accommodation.
0:10:52 > 0:10:55And the garage, more ground floor space.
0:10:57 > 0:11:00Having taken advice from some local estate agents,
0:11:00 > 0:11:05Carolyn's discovered that two houses could be more than twice as nice.
0:11:05 > 0:11:09They were saying that there's a cap of 500,000, more or less,
0:11:09 > 0:11:12on one house, one big house.
0:11:12 > 0:11:16With two three-bedroomed semi, you'd probably get about 300.
0:11:16 > 0:11:19- Each?- Each.- So there's an extra hundred grand in it, perhaps?
0:11:19 > 0:11:24- Fingers crossed.- And what kind of extra building costs, do you think, in terms of splitting it into two?
0:11:24 > 0:11:29Cos there's two lots of electricity, two lots of gas, two lots of whatever else you're going to need.
0:11:29 > 0:11:31That's a little bit of an unknown at the minute,
0:11:31 > 0:11:34so that's where we're going to need to get the builders in
0:11:34 > 0:11:36and get some tenders.
0:11:36 > 0:11:39In the meantime, Carolyn's set an initial budget
0:11:39 > 0:11:42with a small contingency of £80-£90,000.
0:11:42 > 0:11:46But that could change when she speaks to some builders.
0:11:46 > 0:11:51- And what's the timescale for this? - Six or seven months, we're thinking,
0:11:51 > 0:11:55by the time it goes through planning and then tendering.
0:11:55 > 0:11:58- Well, listen, congratulations. - Thank you!- Good luck with it.
0:11:58 > 0:12:01- Thank you. - Yeah, I hope it turns out all right.
0:12:01 > 0:12:03# Everything is twice as nice
0:12:03 > 0:12:06# Between me and you. #
0:12:06 > 0:12:11So, two for the price of one, if Carolyn gets her way.
0:12:11 > 0:12:16Thankfully, her solicitor was able to remove that restrictive clause.
0:12:16 > 0:12:19Will her luck continue? You can find out later in the show.
0:12:25 > 0:12:27This is the town of Ebbw Vale in Gwent.
0:12:27 > 0:12:31It has good transport links and has seen a fair amount of regeneration.
0:12:31 > 0:12:37I'm here to take a look at a property in a nearby village called Rassau.
0:12:37 > 0:12:39Now it's only ten minutes from the centre of town.
0:12:39 > 0:12:42And this area is popular with families.
0:12:42 > 0:12:45Properties around here, they get snapped up like that,
0:12:45 > 0:12:49particularly if they happen to be in a quiet cul-de-sac like this one.
0:12:49 > 0:12:52So, we've got a semi-detached house, it's got double glazing.
0:12:52 > 0:12:56And a nice big space here at the front. So far, so good.
0:12:56 > 0:12:59You could even do what some of the neighbours have done,
0:12:59 > 0:13:01dip down and put in some off-street parking,
0:13:01 > 0:13:04because parking is a little tight around here.
0:13:04 > 0:13:07I'm going to check the house out.
0:13:07 > 0:13:10One word of caution here. Before you put in off-street parking,
0:13:10 > 0:13:15you'll need the local council's permission to drop the curb and cross over the pavement.
0:13:15 > 0:13:18There are also rules about the materials you can use.
0:13:18 > 0:13:20So, park with care.
0:13:20 > 0:13:23These stairs are a bit of a climb, but bearing in mind
0:13:23 > 0:13:27that auction guide price of 59,000 for a three bedroom house,
0:13:27 > 0:13:30it might just be worth it.
0:13:31 > 0:13:35What a really nice surprise. This is in good condition.
0:13:35 > 0:13:40Now, I wouldn't get put off by the artex ceiling and flowery carpet.
0:13:40 > 0:13:43You know what? I'm sure we had that carpet in our house when I was about ten.
0:13:43 > 0:13:46You've got the lounge here, nice big bay window.
0:13:46 > 0:13:51There's central heating, which is something you can't always expect when you buy at auction.
0:13:51 > 0:13:54Now, here is the kitchen.
0:13:54 > 0:13:56I know I always go on about this,
0:13:56 > 0:13:59but it really is the hub of the house, isn't it?
0:13:59 > 0:14:01This will be ideal for families and entertaining,
0:14:01 > 0:14:05because it's open plan. Lots of light coming in.
0:14:05 > 0:14:08I think you could get away with keeping these units even,
0:14:08 > 0:14:10if you're thinking about letting the property.
0:14:10 > 0:14:14I think it's just cosmetic, general work that you need to do here.
0:14:14 > 0:14:19You've got a lovely view looking out to the garden, with these nice windows.
0:14:19 > 0:14:23Oh, what's this? This is a bit of a funny one. Come with me.
0:14:23 > 0:14:27A wobbly lean-to, that smells really, really musty.
0:14:27 > 0:14:30It's useless as it is. I would like to add a permanent structure here.
0:14:30 > 0:14:34You could have an extension. And then it would be a utility room,
0:14:34 > 0:14:37a space to hide that washer and tumble dryer.
0:14:37 > 0:14:40You could even put your boots and your coats out here.
0:14:40 > 0:14:42I think that would really work well.
0:14:43 > 0:14:47And what would also work really well is changing the rather,
0:14:47 > 0:14:50well, original approach to building materials.
0:14:51 > 0:14:56If you love bubblewrap like I do, you're going to love this lean-to
0:14:56 > 0:14:58because it's covered in it!
0:14:58 > 0:15:01# Pop, pop, pop, pop goes my mind
0:15:01 > 0:15:04# My mind... #
0:15:04 > 0:15:07I don't want to burst anyone's bubble,
0:15:07 > 0:15:09but that's just not going to do.
0:15:09 > 0:15:11However, a good extension, either a simple utility
0:15:11 > 0:15:13or a larger kitchen extension,
0:15:13 > 0:15:15could add value to this property.
0:15:15 > 0:15:19Upstairs, there are two decent-sized double bedrooms
0:15:19 > 0:15:23and at the front, there's a much smaller third single bedroom.
0:15:23 > 0:15:25The bathroom is in good condition too,
0:15:25 > 0:15:26although the shower might need changing
0:15:26 > 0:15:30as it's been adapted for somebody with a disability.
0:15:30 > 0:15:33The decor and carpets could do with a modern touch,
0:15:33 > 0:15:36but inside, this place is in pretty good condition.
0:15:36 > 0:15:38So on the face of it,
0:15:38 > 0:15:41this place seems a good buy without any catches
0:15:41 > 0:15:43until you go outside
0:15:43 > 0:15:46and there are definitely no fairies at the bottom of this garden.
0:15:50 > 0:15:53Outside, you've got some really lovely garden space here
0:15:53 > 0:15:56which is very pretty. Lovely roses.
0:15:56 > 0:16:01However, some people may be put off by this main road behind
0:16:01 > 0:16:04because it could certainly get noisy at times.
0:16:04 > 0:16:06Now, it services all the valleys.
0:16:06 > 0:16:08But don't let it put you off
0:16:08 > 0:16:13because this is about to be rerouted two miles that way.
0:16:13 > 0:16:14It's part of a big ten-year plan
0:16:14 > 0:16:18and that noisy road will not be there in the next few years.
0:16:20 > 0:16:24Martin and I are always nagging you about doing your research
0:16:24 > 0:16:26and this is the sort of thing we mean.
0:16:26 > 0:16:30This long-term plan will undoubtedly not only enhance the garden,
0:16:30 > 0:16:32but also the value of the house.
0:16:32 > 0:16:36However, you'd have to put up with the noise in the short term.
0:16:36 > 0:16:41But for the guide price of £59,000, I think it has a lot going for it.
0:16:41 > 0:16:44What does a local estate agent think?
0:16:45 > 0:16:48I like the location of the property.
0:16:48 > 0:16:50I like the bay windows, I like the nice high ceilings.
0:16:50 > 0:16:52Good-sized rooms.
0:16:52 > 0:16:56It obviously needs a bit of TLC and just general upgrading
0:16:56 > 0:16:58and some modernisation.
0:16:58 > 0:17:00The only major drawback is the parking issue,
0:17:00 > 0:17:03so I would suggest to any potential buyer
0:17:03 > 0:17:08to look into the possibility of putting off-road parking in
0:17:08 > 0:17:12as that would improve saleability and value on the property.
0:17:14 > 0:17:16So, what could the property sell for?
0:17:18 > 0:17:21Once all the work has been completed, in its current layout,
0:17:21 > 0:17:26I would suggest an asking price of around £90-£95,000.
0:17:26 > 0:17:29What about the rental market?
0:17:30 > 0:17:35I think this property would rent for £400-£450 per calendar month.
0:17:35 > 0:17:38This place has a lot of appeal.
0:17:38 > 0:17:39It's in a good location,
0:17:39 > 0:17:42it does need modernising, but nothing too drastic
0:17:42 > 0:17:45and there's even the option to make changes here.
0:17:45 > 0:17:47And you can extend the kitchen.
0:17:47 > 0:17:51You can always make money on property when you can add value.
0:17:51 > 0:17:53I'd say it's a pretty good one to go for.
0:17:53 > 0:17:56Let's see who snapped this up when it went to auction.
0:18:01 > 0:18:04Onto Lot 24, freehold semi-detached three-bedroom house.
0:18:04 > 0:18:07I'm going to come straight in with my proxy bid of £50,000.
0:18:07 > 0:18:09Looking for two to get things on.
0:18:09 > 0:18:13Two is standing at the back. Thank you. My proxy bid is 54.
0:18:13 > 0:18:1654. 56, thank you. 56 standing.
0:18:16 > 0:18:2056 is bid, my proxy is out. 58, looking for 60.
0:18:20 > 0:18:2258. I'll take ones if it helps.
0:18:22 > 0:18:2559. Thank you. 59,000 is bid.
0:18:25 > 0:18:29Very close to being in the market, but I can't quite do it at 59.
0:18:29 > 0:18:32Who's going to give me an advance to 60? Thank you. 60,000.
0:18:32 > 0:18:3560,000 is bid. Any advance on 60,000?
0:18:35 > 0:18:38Any advance on 60,000? I'm going to sell it.
0:18:38 > 0:18:40Last chance. No?
0:18:40 > 0:18:43OK, I'm going to sell it to you, madam. 60,000. Thank you.
0:18:43 > 0:18:47The successful buyer who made only one bid
0:18:47 > 0:18:49and a quick exit was Shannon.
0:18:49 > 0:18:51She's self-employed and runs her own business
0:18:51 > 0:18:56which helps social enterprises and not-for-profit organisations.
0:18:56 > 0:18:58She's never refurbished a property before,
0:18:58 > 0:19:02but hopes this purchase could be the start of a new career for her.
0:19:02 > 0:19:06I met up with Shannon at the semi to discuss her plans for it.
0:19:06 > 0:19:09# I'm back in business
0:19:09 > 0:19:12# I don't want to run again. #
0:19:12 > 0:19:15- Shannon, it's great to meet you. Congratulations.- Thank you.
0:19:15 > 0:19:18So, what's the story behind you wanting to buy this?
0:19:18 > 0:19:21I've been looking at properties with my son, who's a great enthusiast
0:19:21 > 0:19:26and we went to an auction, then saw this property at a second auction.
0:19:26 > 0:19:29But then last minute thought, no, I'm not going to bother.
0:19:29 > 0:19:30But literally did.
0:19:30 > 0:19:33Half an hour before the auction, jumped in the car, went down.
0:19:33 > 0:19:35Was the last one to sign in.
0:19:35 > 0:19:37Just got in by the skin of my teeth.
0:19:37 > 0:19:40But just really to see how much it was going to go for.
0:19:40 > 0:19:43But it stopped at 59 and I thought, it can't go for that.
0:19:43 > 0:19:45So I bid 60.
0:19:45 > 0:19:48And almost fell off my chair when they said, sold.
0:19:48 > 0:19:50I really didn't expect to buy it.
0:19:50 > 0:19:54- So you were just being nosey, really, weren't you?- I was, yes.
0:19:54 > 0:19:56That's the top and bottom of it. I was being nosey.
0:19:56 > 0:19:58I wanted to see who was buying it and for how much.
0:19:58 > 0:20:01When you viewed this property for the first time, what did you think?
0:20:01 > 0:20:04Why did you think, "Ooo, it's quite interesting?"
0:20:04 > 0:20:07Well, I think it's in pretty good condition. It needs updating.
0:20:07 > 0:20:09It's a bit old fashioned. But it's basically sound.
0:20:09 > 0:20:11I also know the area really well.
0:20:11 > 0:20:14My daughter lives just a mile or so away. My friends live down the road.
0:20:14 > 0:20:17So it was local knowledge, I suppose,
0:20:17 > 0:20:21because the one thing that would have put me off is the road.
0:20:21 > 0:20:24But I know that's being moved, so it sort of all fell into place, really.
0:20:24 > 0:20:26On the face of it,
0:20:26 > 0:20:30this is just a cosmetic upgrade with the possibility of adding value.
0:20:30 > 0:20:33So, is first-time property developer Shannon
0:20:33 > 0:20:36going to play it safe in her 12-week schedule?
0:20:36 > 0:20:39I think, obviously, the bathroom needs updating
0:20:39 > 0:20:41because that's been adapted.
0:20:41 > 0:20:45Um...it's the, I'm not sure what it is, it's the lean-to,
0:20:45 > 0:20:47the bubblewrap room.
0:20:47 > 0:20:50That's the major expenditure, I think,
0:20:50 > 0:20:53to turn that into a proper sort of, um...extension on the building.
0:20:53 > 0:20:56Those are the main areas, really.
0:20:56 > 0:20:58Just decorating afterwards and...
0:20:58 > 0:21:01maybe smartening up the staircase, that type of thing.
0:21:01 > 0:21:02So that it's a more attractive entrance.
0:21:02 > 0:21:05What kind of budget has she got for all this?
0:21:07 > 0:21:12At the moment, I've got a budget of about £7,000 which I've put aside.
0:21:12 > 0:21:15But it really depends on value for money.
0:21:15 > 0:21:17If it's a bit more, if it goes up to ten,
0:21:17 > 0:21:20but it adds value to the house, then I'm quite happy to do that.
0:21:20 > 0:21:24I'm fortunate that I have a nephew who's an electrician
0:21:24 > 0:21:26and my niece's partner is a bricklayer,
0:21:26 > 0:21:29so they've promised me good rates.
0:21:29 > 0:21:31So we'll...But I'm shopping around.
0:21:31 > 0:21:33Keeping it in the family first. I like it.
0:21:33 > 0:21:36Is anything worrying you about having bought this at auction?
0:21:36 > 0:21:40Um...I think it's probably not the best time to sell,
0:21:40 > 0:21:43so I'm obviously going to have to rent it or sit on it for a while.
0:21:45 > 0:21:47Shannon does have another option.
0:21:47 > 0:21:49If selling or renting doesn't work out,
0:21:49 > 0:21:52she might move in here herself and sell her current home.
0:21:52 > 0:21:54However, that's not Plan A,
0:21:54 > 0:21:58which is really to add property to her other business interests,
0:21:58 > 0:22:00or maybe even change careers.
0:22:00 > 0:22:05Do you think there's a chance that you may go full on into property?
0:22:05 > 0:22:07It's certainly something I'm interested in
0:22:07 > 0:22:10and my eldest son is certainly encouraging me that way
0:22:10 > 0:22:12because he's got an interest.
0:22:12 > 0:22:14But he's still in university at the moment,
0:22:14 > 0:22:17so it's encouraging me to spend my money, really,
0:22:17 > 0:22:19rather than his, you know.
0:22:19 > 0:22:22Shannon has started off in property with a good sound house
0:22:22 > 0:22:25and has secured mates' rates to do the work.
0:22:25 > 0:22:29So, given she's new to developing, how much is she going to do?
0:22:29 > 0:22:33Well, the decorating is something I'll do myself.
0:22:33 > 0:22:36The garden, my sister's a very enthusiastic gardener,
0:22:36 > 0:22:39so I think it needs a bit of taming, although it's a really nice space.
0:22:39 > 0:22:43So she can come down and give me a hand and some tips on that.
0:22:43 > 0:22:46But most of the building work will obviously be done by contractors.
0:22:46 > 0:22:49So it's just the decorating, really.
0:22:49 > 0:22:51Do you really think this was meant to be?
0:22:51 > 0:22:53Because there you were one day, just being a bit nosey,
0:22:53 > 0:22:55checking out the auctions, you bought it,
0:22:55 > 0:22:57you paid £1,000 over the guide price.
0:22:57 > 0:22:59You think you've got a bargain.
0:22:59 > 0:23:01Yeah. I think it was meant to be.
0:23:01 > 0:23:05I'm a great believer in fate and I so nearly didn't go to that auction
0:23:05 > 0:23:07and I so nearly didn't get in.
0:23:07 > 0:23:09So it was, yeah, I think it was meant to be.
0:23:09 > 0:23:13It's been so lovely meeting you today. Good luck with this project.
0:23:13 > 0:23:16- I can't wait to see what it turns out like.- Thanks very much.
0:23:16 > 0:23:19This project started out well for Shannon,
0:23:19 > 0:23:22considering she only paid £1,000 over the guide price
0:23:22 > 0:23:26and she wasn't even going to buy a house on auction day, anyway.
0:23:26 > 0:23:30I really hope those property gods continue to look kindly on her.
0:23:30 > 0:23:33But will this be the new career she's looking for?
0:23:33 > 0:23:37You can find out what happens later on in the programme.
0:23:38 > 0:23:42Still to come - in Derbyshire, a nice open staircase
0:23:42 > 0:23:44doesn't seem too much to ask for.
0:23:44 > 0:23:47Just a normal staircase with spindles and a rail.
0:23:48 > 0:23:52In Gwent, Shannon finds the lot of a newbie property developer
0:23:52 > 0:23:54is not an easy one.
0:23:54 > 0:23:58The condition of the house was not as good as we thought it was.
0:24:00 > 0:24:02But first, in Hertford,
0:24:02 > 0:24:05did Carolyn keep her accounting eye on the budget?
0:24:05 > 0:24:08And the rest. I think you can double that.
0:24:11 > 0:24:14We return now to Hertford, where earlier in the programme,
0:24:14 > 0:24:16accountant Carolyn and her partner Alan
0:24:16 > 0:24:22bought this house on a large corner plot for £337,000.
0:24:22 > 0:24:26In the past, they've renovated a couple of other properties
0:24:26 > 0:24:27and they rent out a flat,
0:24:27 > 0:24:32but as I discovered, this place had another attraction.
0:24:32 > 0:24:35So, why this particular house, then?
0:24:35 > 0:24:36The land, really.
0:24:36 > 0:24:40We're hoping to be able to split the one big property
0:24:40 > 0:24:43into two three-bedroom semis.
0:24:43 > 0:24:45I mean, there's a garage with nothing on top of it.
0:24:45 > 0:24:47Bound to be able to put something on top of that.
0:24:47 > 0:24:50And there's semi-detached in the road,
0:24:50 > 0:24:52so we thought it might be worthwhile trying for that.
0:24:52 > 0:24:57They set a budget of £80-90,000, but were waiting on building tenders
0:24:57 > 0:25:00as they weren't sure how much it was going to cost.
0:25:00 > 0:25:03They thought the work would take six to seven months
0:25:03 > 0:25:07and a lot depended on planning permission, too.
0:25:08 > 0:25:12It's now almost eleven months later
0:25:12 > 0:25:16and the detached property has been split down the middle
0:25:16 > 0:25:19and an extension been added to each side.
0:25:20 > 0:25:23Creating two three-bed semis.
0:25:25 > 0:25:29Inside both houses, the kitchens...
0:25:29 > 0:25:31bathrooms and en suites
0:25:31 > 0:25:34have been fitted to a very high standard.
0:25:35 > 0:25:40Carolyn is delighted with the curb appeal of the two houses.
0:25:40 > 0:25:44The original house was quite square with a door in the middle.
0:25:44 > 0:25:48We built the two-storey side extension where the garage was
0:25:48 > 0:25:53and that gave us the new front door, two bedrooms
0:25:53 > 0:25:56and the new kitchen for one of the houses.
0:25:56 > 0:26:00And then there was a second extension at the rear
0:26:00 > 0:26:04to give us a bedroom and a kitchen for the other house.
0:26:04 > 0:26:07The original hallway shows where the division took place.
0:26:11 > 0:26:13The original living room remains in the corner house,
0:26:13 > 0:26:15but no longer looks out onto the garden.
0:26:17 > 0:26:23Because behind it, in the new rear extension is this super kitchen.
0:26:23 > 0:26:28Tasteful cream units look great and there's also a downstairs cloakroom.
0:26:31 > 0:26:33In the left-hand semi, removing that hatch
0:26:33 > 0:26:37and the wall to the original kitchen created its living space.
0:26:40 > 0:26:42The new extension is home to the kitchen,
0:26:42 > 0:26:44black and white in this house.
0:26:46 > 0:26:49With great views out onto the garden.
0:26:49 > 0:26:52Very pleased with how it looks from the outside.
0:26:52 > 0:26:54We had to provide parking for two vehicles for each property.
0:26:54 > 0:26:59And the gravel works quite well for the parking for two vehicles.
0:26:59 > 0:27:01I'm really pleased with them.
0:27:01 > 0:27:05In fact, it's going to be hard parting with them, really.
0:27:05 > 0:27:08The house on the corner kept the original staircase.
0:27:11 > 0:27:14There are now three bedrooms and a family bathroom.
0:27:15 > 0:27:17They're all well proportioned
0:27:17 > 0:27:20and the large master has an en suite.
0:27:21 > 0:27:25Both houses have been completely rewired and replumbed.
0:27:25 > 0:27:29In the left-hand semi, a staircase has been built.
0:27:29 > 0:27:33Opposite the top of those stairs is this very smart family bathroom.
0:27:36 > 0:27:39There are three neutrally-decorated bedrooms.
0:27:39 > 0:27:43With an en suite for the master bedroom.
0:27:43 > 0:27:45As Carolyn explains,
0:27:45 > 0:27:48the actual building process has been relatively quick.
0:27:48 > 0:27:52Since you were last here, we put in planning permission,
0:27:52 > 0:27:56we managed to get planning permission to split it into two
0:27:56 > 0:28:01and then about six, seven months after we bought it,
0:28:01 > 0:28:03we started building
0:28:03 > 0:28:09and it's taken five months to get to a more-or-less finished product.
0:28:09 > 0:28:13Carolyn and Alan's builders have achieved a really good finish
0:28:13 > 0:28:15and with help from her son Adam,
0:28:15 > 0:28:18Carolyn's been busy painting the fences.
0:28:18 > 0:28:22The council were keen the character and look of the area be maintained,
0:28:22 > 0:28:26so new fences and landscaping have been added to the plans.
0:28:26 > 0:28:29Carolyn reckons this has added £10,000
0:28:29 > 0:28:32to their original budget of 80-90,000.
0:28:32 > 0:28:35So, have two houses cost twice as much?
0:28:35 > 0:28:38And the rest. I think you can double that.
0:28:38 > 0:28:40I mean, the two together,
0:28:40 > 0:28:44we're probably about between 560 and 570 all told.
0:28:44 > 0:28:47Based on the £570,000 figure,
0:28:47 > 0:28:50having paid £337,000 at the auction,
0:28:50 > 0:28:56that means a further £233,000 was required.
0:28:56 > 0:29:01It has been much more expensive, but we have got two good-quality houses.
0:29:01 > 0:29:04And if we were selling, I think we would've made some money,
0:29:04 > 0:29:06but we plan to rent them out.
0:29:06 > 0:29:12What do two local estate agents think of these two new semis?
0:29:12 > 0:29:14Each house is laid out slightly differently,
0:29:14 > 0:29:15so I think that's a nice thing.
0:29:15 > 0:29:18I think the fact that the kitchens are a good size
0:29:18 > 0:29:20and the living space is also really quite generous,
0:29:20 > 0:29:23that will go down really well with buyers and tenants.
0:29:23 > 0:29:25I think the houses have been done very, very well.
0:29:25 > 0:29:28Because it didn't look like it had the scope to make it into semis,
0:29:28 > 0:29:31but they've done that with two very good extensions.
0:29:31 > 0:29:33The fact that both properties have en suites
0:29:33 > 0:29:35really is going to go down very well with both tenants and buyers.
0:29:35 > 0:29:39The standard of work is high enough at this kind of level.
0:29:39 > 0:29:41The garden's a reasonable size, as well, for new builds,
0:29:41 > 0:29:44and there's generous parking, so it's got a lot of plusses.
0:29:44 > 0:29:48With the total investment standing at 570,000,
0:29:48 > 0:29:51how much could these two houses achieve on the resale market?
0:29:51 > 0:29:54If I had to put these up for sale,
0:29:54 > 0:29:56I think they'd both achieve around the same level.
0:29:56 > 0:30:00And my thoughts on price are around the £275,000 mark.
0:30:00 > 0:30:05I would expect the houses to achieve £275-285,000.
0:30:05 > 0:30:10Based on those valuations of £275-285,000,
0:30:10 > 0:30:12if both houses were sold,
0:30:12 > 0:30:17Carolyn's facing a loss of £20,000 or breaking even at best.
0:30:17 > 0:30:21That's a bit less than what we've been advised.
0:30:21 > 0:30:25We know there tends to be a bit of a ceiling on the area,
0:30:25 > 0:30:27but we were advised about 300.
0:30:27 > 0:30:31So we'd be hoping for 300 if we did sell.
0:30:31 > 0:30:33Initially, the plan is to let the properties.
0:30:33 > 0:30:37How much rental income could each house achieve?
0:30:37 > 0:30:42I think the rental values are around £1,100 per calendar month.
0:30:42 > 0:30:44I think if we put these on the rental market,
0:30:44 > 0:30:47we'd probably look to achieve around £1,300 a month.
0:30:47 > 0:30:49We've rented one of them at £1,350.
0:30:49 > 0:30:51That's on a first viewing.
0:30:51 > 0:30:54So hopefully, the other one will get something similar.
0:30:54 > 0:30:57If both houses are let at that income,
0:30:57 > 0:31:00it would produce a yield of 5.5%.
0:31:00 > 0:31:02But what about the future?
0:31:02 > 0:31:04Could they be tempted to move in themselves?
0:31:04 > 0:31:07In the long term, I think we'd certainly
0:31:07 > 0:31:10look to moving into one of the properties.
0:31:10 > 0:31:13I feel like we have put some creative work into it,
0:31:13 > 0:31:16so we're very pleased with what resulted.
0:31:16 > 0:31:20It has helped with the neighbours saying, "Oh, it looks really nice."
0:31:20 > 0:31:21They seem quite pleased
0:31:21 > 0:31:24that something's happened to the old house on the corner.
0:31:29 > 0:31:32This is the small market town of Belper
0:31:32 > 0:31:35in the beautiful hills of Derbyshire.
0:31:35 > 0:31:38I'm hoping to find, if not a beautiful property,
0:31:38 > 0:31:41then at least an attractive investment.
0:31:41 > 0:31:46Well, the property I'm here to see is in this nice little cul-de-sac.
0:31:46 > 0:31:48But straightaway, I'm seeing one improvement
0:31:48 > 0:31:50you could make to the property.
0:31:50 > 0:31:53Um...it's by creating off-street parking
0:31:53 > 0:31:55like other houses in the cul-de-sac have done.
0:31:55 > 0:31:58Because this is the house behind here.
0:31:58 > 0:32:00It's a two-bedroom semi-detached
0:32:00 > 0:32:03at a guide price of £56,000.
0:32:03 > 0:32:05Let's take a look.
0:32:06 > 0:32:08Off-street parking does add value,
0:32:08 > 0:32:12so, with your developer's head on, it's an option to consider.
0:32:12 > 0:32:15Of course, if you were going to live here, you might make
0:32:15 > 0:32:17the more environmentally-friendly choice
0:32:17 > 0:32:20and keep a nice garden to look out on.
0:32:20 > 0:32:23But if you are thinking of installing off-street parking,
0:32:23 > 0:32:25there are regulations about which materials you can use
0:32:25 > 0:32:29and you need to get permission for it from the council.
0:32:29 > 0:32:31The house was built in the 1950s
0:32:31 > 0:32:35and while it may not appear beautiful from the outside, it has potential.
0:32:35 > 0:32:39Nice double-glazed door. That's always a good start.
0:32:39 > 0:32:42Um...however, that's not good.
0:32:42 > 0:32:44You've got stairs up to the bedrooms there
0:32:44 > 0:32:48and then this little corridor with this wall.
0:32:48 > 0:32:50Now, to my mind, it would be so much better
0:32:50 > 0:32:52if that was open plan in some way.
0:32:52 > 0:32:54Just a normal staircase with spindles and a rail.
0:32:54 > 0:32:56You know what I mean? Oh!
0:32:56 > 0:33:00Anyway, you have got understair storage, which is one advantage,
0:33:00 > 0:33:02but you wouldn't lose that if you had a nice open-plan staircase
0:33:02 > 0:33:05and it would dramatically affect the feeling
0:33:05 > 0:33:08as you walked through the door into the property.
0:33:08 > 0:33:11But carrying on, you've got your front sitting room there
0:33:11 > 0:33:16and then basically through into the rear room, which is your kitchen.
0:33:16 > 0:33:20Obviously, you've got an open boiler kind of thing going on there
0:33:20 > 0:33:24which is very interesting, so you're going to have to factor in
0:33:24 > 0:33:26some kind of central heating for sure.
0:33:26 > 0:33:29And then again, it's just not working quite right.
0:33:29 > 0:33:33Because out the back there, you've got a couple of little storage areas.
0:33:33 > 0:33:35I think they're coal sheds kind of thing.
0:33:35 > 0:33:38But why not think about extending this into those
0:33:38 > 0:33:41to create a really big open-plan
0:33:41 > 0:33:43kitchen sort of family area
0:33:43 > 0:33:45with double doors on there out into the garden?
0:33:45 > 0:33:47Now you're talking!
0:33:47 > 0:33:49# Talk about it, talk about it
0:33:49 > 0:33:52# Talk about it, talk about it. #
0:33:52 > 0:33:54As this house has quite a small footprint,
0:33:54 > 0:33:57it's important to maximise every bit of it.
0:33:57 > 0:33:59And, well, at present, that's not the case.
0:33:59 > 0:34:01With pantries, corridors,
0:34:01 > 0:34:05cupboards all eating into what could be a decent-sized kitchen.
0:34:05 > 0:34:08There's not much wrong with the proportions of the front lounge,
0:34:08 > 0:34:12but the decor and fireplace need to be brought up to date.
0:34:15 > 0:34:18Well, upstairs, a slightly better layout.
0:34:18 > 0:34:21But still some improvements to be made here, too.
0:34:21 > 0:34:24Because you've got basically a loo at that end
0:34:24 > 0:34:29and the bathroom at the front there and then two bedrooms.
0:34:29 > 0:34:32So, um...it's odd, as you can see.
0:34:32 > 0:34:35Two good-sized double bedrooms, though, which is interesting.
0:34:35 > 0:34:39And I'm just wondering what you could do out there
0:34:39 > 0:34:42to maybe make a good-sized bathroom,
0:34:42 > 0:34:46but also possibly create if not another bedroom,
0:34:46 > 0:34:49maybe a little study or a computer room.
0:34:49 > 0:34:51Turning this into a three-bedroom house
0:34:51 > 0:34:53would not only make the house work better,
0:34:53 > 0:34:55but would increase its value.
0:34:55 > 0:34:57And it's not only the inside
0:34:57 > 0:35:01that perhaps isn't maximising its potential.
0:35:01 > 0:35:04At the back of the property, you've got a decent-sized garden.
0:35:04 > 0:35:08It's overgrown, but there's space for a greenhouse, which you've got,
0:35:08 > 0:35:11and space for some kind of a shed, which you haven't got yet,
0:35:11 > 0:35:13but that wouldn't be too much trouble to put that in.
0:35:13 > 0:35:17But while I'm out here, if you notice in the road behind the property,
0:35:17 > 0:35:20there's some new builds being put up.
0:35:20 > 0:35:22That is always a good sign.
0:35:22 > 0:35:24If you see new-build activity in an area,
0:35:24 > 0:35:26you know it's on the up
0:35:26 > 0:35:29or a popular place to buy a property.
0:35:29 > 0:35:31# I see opportunities
0:35:31 > 0:35:33# Brand-new possibilities
0:35:33 > 0:35:35# Looking out for something new
0:35:35 > 0:35:40# All my dreams are coming true. #
0:35:40 > 0:35:42So with ways to build more value into the house
0:35:42 > 0:35:44and with the area potentially on the up,
0:35:44 > 0:35:47this two-bed semi really appears to have a lot going for it.
0:35:51 > 0:35:57To find out more, we asked along the auctioneer who sold it.
0:35:57 > 0:35:59Belper is quite a popular location
0:35:59 > 0:36:03in terms of a commute to Derby and other centres.
0:36:03 > 0:36:05It's quite popular with first-time buyers.
0:36:05 > 0:36:10So this really has got good prospects. It's as simple as that.
0:36:10 > 0:36:13There's a good mix of housing and it would have good demand.
0:36:13 > 0:36:15Well, there may be a ready market for the house,
0:36:15 > 0:36:18but with what was a £56,000 guide price,
0:36:18 > 0:36:22is it a wise investment on the resale and rental markets?
0:36:24 > 0:36:27If you were to retain it as it is with two bedrooms and renovate it,
0:36:27 > 0:36:30maybe enlarge the kitchen areas,
0:36:30 > 0:36:33I think you'd put this value up to probably
0:36:33 > 0:36:36somewhere in the region of about £105,000.
0:36:36 > 0:36:39If you made three bedrooms out of it,
0:36:39 > 0:36:43I think you'd push it beyond that by another 10 or 15,000.
0:36:43 > 0:36:46So you're looking at £115-120,000.
0:36:46 > 0:36:49As a two-bedroomed house, the rental value here once renovated,
0:36:49 > 0:36:53I would say would be in the order of £425 a calendar month.
0:36:53 > 0:36:55If it was three bedrooms,
0:36:55 > 0:36:58that would increase to about £475 a calendar month.
0:36:58 > 0:37:01So encouraging figures
0:37:01 > 0:37:03whether it's rented out or sold on.
0:37:03 > 0:37:06Certainly making this a tempting investment opportunity.
0:37:08 > 0:37:10Well, it's a good solid house in a very popular area.
0:37:10 > 0:37:14Yes, there are some internal modifications you might want to do,
0:37:14 > 0:37:15but nothing too daunting.
0:37:15 > 0:37:18Let's see who fancied it when it went under the hammer.
0:37:20 > 0:37:24Lot 16. 60,000 for it?
0:37:24 > 0:37:2660. 60 I've got on the telephone.
0:37:26 > 0:37:28Thank you. At 60,000 opening bid.
0:37:28 > 0:37:31At 60,000. 61.
0:37:31 > 0:37:3662. 63, 64, 65, 66, 67.
0:37:36 > 0:37:4068. 68. 69.
0:37:40 > 0:37:4170 on the telephone.
0:37:41 > 0:37:4771? 71. 72? 72.
0:37:47 > 0:37:4873.
0:37:48 > 0:37:50At 73,000, 74.
0:37:50 > 0:37:52There was a lot of interest in this lot.
0:37:52 > 0:37:56We rejoin the auction when the bidding reaches 79,000.
0:37:56 > 0:37:5879? 79.
0:37:58 > 0:38:00500, seated bid.
0:38:00 > 0:38:0479. 80? 80,000.
0:38:04 > 0:38:0580,500.
0:38:05 > 0:38:0781.
0:38:07 > 0:38:0981,500? 81,500.
0:38:09 > 0:38:1182 for you, sir?
0:38:11 > 0:38:14£81,500, then.
0:38:14 > 0:38:17Once. Twice. Third time.
0:38:17 > 0:38:20Sold second row, 81,500. Thank you.
0:38:22 > 0:38:28Sold for over £25,000 above the guide price at £81,500.
0:38:28 > 0:38:30The successful bidder was Roland.
0:38:30 > 0:38:32He lives in Derbyshire and is a builder by trade,
0:38:32 > 0:38:37but hasn't worked for a number of years following health problems.
0:38:37 > 0:38:42I met him at the two-bed Belper semi to hear more.
0:38:42 > 0:38:45Roland, good to meet you. Tell me why you wanted to buy this place.
0:38:45 > 0:38:48Um...I was looking for somewhere
0:38:48 > 0:38:52after a stroke about two years ago
0:38:52 > 0:38:56to do up and this fitted the criteria.
0:38:56 > 0:38:58You had a stroke two years ago?
0:38:58 > 0:39:00It was one of those things.
0:39:00 > 0:39:03What were you doing work-wise prior to your stroke?
0:39:03 > 0:39:05Mainly extensions, refurbs.
0:39:05 > 0:39:08- You were a builder?- A builder, yes. - Oh, right.
0:39:08 > 0:39:10So, is this the first big physical project you've done
0:39:10 > 0:39:14- since you had your stroke? - It is, yes.
0:39:14 > 0:39:17It has been a tough time for Roland.
0:39:17 > 0:39:21He now feels that he's about 80% back to his former self.
0:39:21 > 0:39:26He hopes this property will not only help him on his road to recovery,
0:39:26 > 0:39:29but also benefit both him and his family.
0:39:29 > 0:39:31So, why this house?
0:39:31 > 0:39:34My daughter is renting at the moment with her boyfriend
0:39:34 > 0:39:38and I got the tug on the shirt strings saying,
0:39:38 > 0:39:44it's a nice area, can we rent your house
0:39:44 > 0:39:47with a view to possibly buying it?
0:39:47 > 0:39:49- Are you going to charge her rent? - Yes.- Market rent?
0:39:49 > 0:39:53- Er...just below. - Just below the market rent.- Yeah.
0:39:53 > 0:39:54Time pressure must be on you.
0:39:54 > 0:39:56I guess she wants to be in here soon, does she?
0:39:56 > 0:40:01Er...yeah. I mean, I've got a kitchen to fit next week.
0:40:01 > 0:40:06After that, it'll be like, er...three, four months.
0:40:06 > 0:40:09Roland's married and has two daughters.
0:40:09 > 0:40:12This house will be for his eldest daughter Katie
0:40:12 > 0:40:16who just graduated as a teacher and is now working in the area.
0:40:16 > 0:40:19So this really does seem like the ideal location,
0:40:19 > 0:40:22although at present, it's far from being the perfect property.
0:40:23 > 0:40:25Tell me what you're going to do.
0:40:25 > 0:40:29Off-street parking is a necessity.
0:40:29 > 0:40:32A lot of the houses in the cul-de-sac
0:40:32 > 0:40:34that have been modernised,
0:40:34 > 0:40:38the back door is blocked up, bricked up.
0:40:38 > 0:40:44And there's French doors going to outside instead of the window.
0:40:44 > 0:40:49And take out all the old pantries and sheds
0:40:49 > 0:40:51and the coalhouses as such
0:40:51 > 0:40:55and rewire, replumb the central heating
0:40:55 > 0:40:59and move the bathroom, toilet,
0:40:59 > 0:41:02which is split now, plumb them together
0:41:02 > 0:41:05and make a third bedroom come office.
0:41:05 > 0:41:07So, what's the budget?
0:41:07 > 0:41:13I'm looking at 15, but if I pull it in for less, the better.
0:41:13 > 0:41:18But being a family member, it might be increased to 20.
0:41:18 > 0:41:20And what work are you going to do?
0:41:20 > 0:41:24Well, hopefully about 95%.
0:41:24 > 0:41:27Roland's health problems have been the catalyst
0:41:27 > 0:41:29for him investing in property.
0:41:29 > 0:41:33Mainly because he's found it hard to find employment while recovering from the stroke.
0:41:33 > 0:41:35But he's found a positive here
0:41:35 > 0:41:38as circumstances actually made him realise an ambition.
0:41:38 > 0:41:41What I've always wanted to do was be self-employed.
0:41:41 > 0:41:46I suppose it was a kick up the backside to do it.
0:41:46 > 0:41:48So hopefully...
0:41:48 > 0:41:50Well, not exactly the ideal circumstances.
0:41:50 > 0:41:55It's not, but it's a case of que sera. What will be.
0:41:55 > 0:41:57- Congratulations. Good luck with it.- Thank you.
0:41:57 > 0:42:00- I look forward to seeing how you get on.- Thank you very much.
0:42:00 > 0:42:04So the first project for Roland since he's had his stroke,
0:42:04 > 0:42:08but he certainly seems well set up to get this one sorted out.
0:42:08 > 0:42:09My only concern is
0:42:09 > 0:42:13will he do it quick enough for his daughter's liking?
0:42:13 > 0:42:15You can find out later in the show.
0:42:17 > 0:42:22Well, time waits for no man and the weeks and months have passed.
0:42:22 > 0:42:25Have the properties been subject to a real DIY effort?
0:42:25 > 0:42:30Or have they remained exactly the same? It's the moment of truth.
0:42:30 > 0:42:31Let's find out.
0:42:32 > 0:42:34We now head back to South Wales
0:42:34 > 0:42:38and the village of Rassau on the outskirts of Ebbw Vale.
0:42:38 > 0:42:40Here we saw this three-bed house
0:42:40 > 0:42:44which had an auction guide price of £59,000.
0:42:44 > 0:42:47It was bought by Shannon, who'd gone along on an impulse
0:42:47 > 0:42:51and with her first and only bid got it for 60,000.
0:42:51 > 0:42:55She runs her own business helping non-profit organisations,
0:42:55 > 0:42:59but has plans to make this property generate some profit for herself
0:42:59 > 0:43:03and help her make a step in a new direction.
0:43:03 > 0:43:05So, do you think there's a chance
0:43:05 > 0:43:08that you may go full on into property?
0:43:08 > 0:43:11It's certainly something I'm interested in and my eldest son
0:43:11 > 0:43:15is certainly encouraging me that way because he's got an interest.
0:43:15 > 0:43:17But he's still in university at the moment,
0:43:17 > 0:43:22so it's encouraging me to spend my money rather than his.
0:43:22 > 0:43:26Well, Shannon couldn't have found a better first property than this
0:43:26 > 0:43:28to cut her renovating teeth on.
0:43:28 > 0:43:31It only needed a spruce up with maybe a new bathroom
0:43:31 > 0:43:33and possibly an extension.
0:43:33 > 0:43:35She reckoned a £7,000 budget
0:43:35 > 0:43:39and a 12-week turnaround should do the trick.
0:43:40 > 0:43:44We're back and not after 12 weeks as Shannon had hoped.
0:43:44 > 0:43:47It's been 19 months since we were here.
0:43:47 > 0:43:50The hills of South Wales have had their own winter makeover
0:43:50 > 0:43:52with a fresh fall of snow.
0:43:52 > 0:43:54So down in the valleys,
0:43:54 > 0:43:57has Shannon's makeover gone according to plan?
0:43:58 > 0:44:02The house still looks the same, but there's a new driveway
0:44:02 > 0:44:06for some handy off-road parking, which is a real value-adder here.
0:44:07 > 0:44:09The living room has been refurbished
0:44:09 > 0:44:13and Shannon already seems to be getting some money back
0:44:13 > 0:44:14as the place is already let.
0:44:17 > 0:44:20At the rear, the kitchen has been freshened up
0:44:20 > 0:44:22with smart new units, new flooring
0:44:22 > 0:44:26and French windows opening out to that lovely big garden.
0:44:28 > 0:44:32It all looks, well, fantastic!
0:44:32 > 0:44:35So, has it all gone swimmingly?
0:44:35 > 0:44:37A lot of work went into the kitchen.
0:44:37 > 0:44:39When we bought the property,
0:44:39 > 0:44:41there was a lean-to where the back door is.
0:44:41 > 0:44:44We demolished that and put in a new back door.
0:44:44 > 0:44:47Refitted the kitchen, which was quite dated.
0:44:47 > 0:44:51Replaced the kitchen window with patio doors.
0:44:51 > 0:44:55Both to bring in light and to give access to the outside garden.
0:44:55 > 0:44:58The carpenter replaced what was an ugly area, really.
0:44:58 > 0:45:02There was a meter with all wires and the boiler.
0:45:02 > 0:45:05So we used the kitchen units to block those in
0:45:05 > 0:45:07and make it all look the same.
0:45:07 > 0:45:10So we were really pleased with the way it turned out.
0:45:10 > 0:45:12I like the kitchen. This is one of my favourite rooms.
0:45:12 > 0:45:15I think it's come out exactly as I hoped it would.
0:45:15 > 0:45:17I think it's a light and airy finish
0:45:17 > 0:45:19and it makes it a really pleasant area to be in.
0:45:22 > 0:45:25Upstairs, all the rooms have been replastered and rewired.
0:45:25 > 0:45:29The two main bedrooms have already been put to good use
0:45:29 > 0:45:32with the smallest bedroom currently serving as an office.
0:45:36 > 0:45:39But the real treat here is the totally-refurbished
0:45:39 > 0:45:42and beautifully finished-off bathroom.
0:45:44 > 0:45:47All round, it's a great-looking transformation.
0:45:47 > 0:45:51But it all seems as if a lot more was done than originally planned.
0:45:51 > 0:45:52The condition of the house
0:45:52 > 0:45:55was probably not as good as we thought it was.
0:45:55 > 0:45:59There was damp in the back where the kitchen and the dining area is.
0:45:59 > 0:46:00When we stripped the walls,
0:46:00 > 0:46:03the render fell off and we had to replaster.
0:46:03 > 0:46:05And when you start to replaster,
0:46:05 > 0:46:08it's about replacing the doorframes and the skirtings.
0:46:08 > 0:46:11So there was a lot more work than we anticipated.
0:46:11 > 0:46:15In fact, the whole house has been replastered and rewired.
0:46:15 > 0:46:18Definitely an unplanned expense.
0:46:18 > 0:46:21It just goes to show that a property that appears problem free
0:46:21 > 0:46:24can turn up all sorts of unexpected horrors.
0:46:24 > 0:46:29Unfortunately for Shannon, the extra cost didn't stop there.
0:46:29 > 0:46:33The development of the off-parking area was an absolute disaster.
0:46:33 > 0:46:36It happened at a time when the weather just changed.
0:46:36 > 0:46:38We had torrential rain.
0:46:38 > 0:46:42The contractors worked through some awful weather to dig it out.
0:46:42 > 0:46:45And they built the retaining wall,
0:46:45 > 0:46:48left it a couple of weeks to go off so that they could backfill it.
0:46:48 > 0:46:50Unfortunately, because the weather was so wet,
0:46:50 > 0:46:53it hadn't completely gone off and when they backfilled it,
0:46:53 > 0:46:57it collapsed and all of the cement was running down the road.
0:46:57 > 0:47:02Sadly, it also meant that Shannon had a runaway budget.
0:47:02 > 0:47:05The total budget was probably about £25,000,
0:47:05 > 0:47:09which is considerably more than we estimated originally.
0:47:09 > 0:47:13But when we made the decision to do it to that level,
0:47:13 > 0:47:15we realised that would probably be the case.
0:47:15 > 0:47:20That spend meant there was no money to replace the bubble wrap lean-to.
0:47:20 > 0:47:24But that road out back is currently being downgraded,
0:47:24 > 0:47:27so the garden will be quieter to sit in.
0:47:27 > 0:47:29And when a carpenter working on the renovation
0:47:29 > 0:47:31wanted to be Shannon's first tenant,
0:47:31 > 0:47:34it was a vote of confidence in her purchase.
0:47:34 > 0:47:38So, has she now the confidence to become a full-time developer?
0:47:38 > 0:47:42Given my lack of construction skills,
0:47:42 > 0:47:44I don't see it as a full-time career,
0:47:44 > 0:47:49but it's certainly something I would like to do alongside my own work.
0:47:51 > 0:47:53Add Shannon's spend of 25,000
0:47:53 > 0:47:56to her purchase price of 60,000
0:47:56 > 0:47:59and her total outlay is £85,000.
0:47:59 > 0:48:02Time to find out from two local estate agents
0:48:02 > 0:48:05if all her troubles have been worth the effort.
0:48:05 > 0:48:07The property is really well renovated.
0:48:07 > 0:48:10The renovation is a high-quality renovation.
0:48:10 > 0:48:13I'm really impressed with the improvements carried out.
0:48:13 > 0:48:16I think the owners haven't cut any corners.
0:48:16 > 0:48:18I think the kitchen is finished well.
0:48:18 > 0:48:20It's modern, it's contemporary,
0:48:20 > 0:48:22it's what people are looking for.
0:48:22 > 0:48:25What Shannon needs is a solid return on her investment.
0:48:25 > 0:48:27So, with tenants already in,
0:48:27 > 0:48:31is she getting the best rental income possible?
0:48:31 > 0:48:33I would expect this property to rent out
0:48:33 > 0:48:36for approximately £450 per calendar month.
0:48:36 > 0:48:38If I had to rent this property at the moment,
0:48:38 > 0:48:41I would ask for £575 per calendar month.
0:48:41 > 0:48:43They're quite a bit higher than I expected
0:48:43 > 0:48:46and higher than I'm currently getting.
0:48:46 > 0:48:49One is significantly higher. So it's all good.
0:48:49 > 0:48:52It may need to be looked at again.
0:48:52 > 0:48:55These rental valuations would give a yield
0:48:55 > 0:48:57of between six and eight percent.
0:48:57 > 0:48:59And the estimates from the estate agents suggest
0:48:59 > 0:49:04the house could sell for 100-105,000.
0:49:04 > 0:49:08That would give Shannon a profit of £15-20,000
0:49:08 > 0:49:11minus tax and expenses.
0:49:11 > 0:49:13I think it's probably what I expected.
0:49:13 > 0:49:15I mean, we were looking at 110 when we started,
0:49:15 > 0:49:17but obviously, it's gone down since then.
0:49:17 > 0:49:20So it's probably what I expected.
0:49:20 > 0:49:23For now, she's going to stick with the rentals
0:49:23 > 0:49:25until the resale market picks up
0:49:25 > 0:49:27and then she'll cash in on her property.
0:49:27 > 0:49:29So while Shannon may have felt
0:49:29 > 0:49:32she was swimming against the tide with this renovation,
0:49:32 > 0:49:34she isn't ready to throw in the towel.
0:49:34 > 0:49:36I would like to do this again.
0:49:36 > 0:49:39I think I'm crazy to do that, but I would like to do it again.
0:49:39 > 0:49:41I've learned a lot of lessons doing it the first time
0:49:41 > 0:49:44and it would be a waste not to put that experience into practise
0:49:44 > 0:49:48and perhaps do the next one better, more cheaply
0:49:48 > 0:49:51and get a better end result out of it.
0:50:00 > 0:50:02In the Derbyshire market town of Belper,
0:50:02 > 0:50:05a two-bed semi-detached house went up for auction.
0:50:05 > 0:50:09This solidly-built property was a little tired and dated,
0:50:09 > 0:50:12but had scope for off-street parking, a bigger kitchen,
0:50:12 > 0:50:14making a third bedroom upstairs
0:50:14 > 0:50:17and sorting out the eccentric toilet layout.
0:50:17 > 0:50:20So this was a house where you could add value.
0:50:21 > 0:50:24For local builder Roland, it also offered an opportunity
0:50:24 > 0:50:28to continue his recovery from a serious health problem.
0:50:29 > 0:50:34I was looking for somewhere after a stroke about two years ago
0:50:34 > 0:50:38to do up and this fitted the criteria.
0:50:38 > 0:50:42- You had a stroke two years ago? - It was one of those things.
0:50:42 > 0:50:46So, is this the first big physical project you've done since?
0:50:46 > 0:50:48It is, yes.
0:50:48 > 0:50:51Having paid £81,500 at auction for the house,
0:50:51 > 0:50:54Roland was planning to do it up
0:50:54 > 0:50:56ready for eldest daughter Katie to rent.
0:50:56 > 0:50:59Armed with a £15-20,000 budget
0:50:59 > 0:51:02and a three-to-four month timescale,
0:51:02 > 0:51:05he took on the challenge not only to get the best from the house,
0:51:05 > 0:51:08but to see how much he could do himself.
0:51:11 > 0:51:15Now, five-and-a-half months later, we're back.
0:51:21 > 0:51:23From the outside, wow!
0:51:23 > 0:51:26It looks like Roland's been busy.
0:51:26 > 0:51:30With new off-road parking for at least two cars.
0:51:30 > 0:51:33The front area is now landscaped and fenced
0:51:33 > 0:51:36and there's a new porch, guttering and facia.
0:51:36 > 0:51:37While inside...
0:51:40 > 0:51:44The lounge has been brought bang up to date with laminate flooring,
0:51:44 > 0:51:47new decor and to go along with the central heating,
0:51:47 > 0:51:50there's a modern coal-effect electric fire.
0:51:50 > 0:51:56But what about that kitchen area with its pantry, coal shed and old units?
0:51:57 > 0:52:01Well, they're now a thing of the past.
0:52:01 > 0:52:06We've, er...taken the pantry out from that side
0:52:06 > 0:52:08and also this side, there was a corridor
0:52:08 > 0:52:12down to an external door that we've blocked up.
0:52:12 > 0:52:16So in fact, the kitchen really stopped here.
0:52:16 > 0:52:20So we've taken out the breast in the other corner,
0:52:20 > 0:52:24so it gives us a nice big family dining kitchen.
0:52:25 > 0:52:28And if that wasn't enough, there are now French doors
0:52:28 > 0:52:30that lead out onto what will be a patio area
0:52:30 > 0:52:32with steps up to the garden.
0:52:32 > 0:52:34All of this is still work in progress,
0:52:34 > 0:52:37but while there might be some jobs outside to finish off,
0:52:37 > 0:52:39what about inside?
0:52:41 > 0:52:45Well, upstairs, those two double bedrooms have been fully refurbished
0:52:45 > 0:52:49and it looks like Roland has managed to get that third bedroom.
0:52:52 > 0:52:54Right, we've, er...
0:52:54 > 0:52:58changed the bathroom from in here
0:52:58 > 0:53:01into the back and made a bedroom
0:53:01 > 0:53:04with the local authority's say-so.
0:53:04 > 0:53:10Escape windows and everything like that to incorporate this room.
0:53:10 > 0:53:12It means, er...instead of a two-bedroom house,
0:53:12 > 0:53:15it's a three-bedroom house.
0:53:16 > 0:53:19By combining the toilet space and landing cupboard,
0:53:19 > 0:53:25Roland's created enough space to put in a new fully-fitted bathroom suite.
0:53:25 > 0:53:29That frees up the old bathroom area to become that third bedroom.
0:53:29 > 0:53:32Boy, I always thought this house had potential,
0:53:32 > 0:53:36but Roland's certainly managed to squeeze out every last drop of it.
0:53:36 > 0:53:39How has he coped with the physical challenge
0:53:39 > 0:53:41of such a demanding project?
0:53:41 > 0:53:44I think because of the stroke, we sort of...
0:53:44 > 0:53:47it's been getting tiring towards the end.
0:53:47 > 0:53:51Er...if I...when I do another one,
0:53:51 > 0:53:57I will take longer and have more rest time.
0:53:58 > 0:53:59So he certainly worked hard
0:53:59 > 0:54:03and he thinks it'll be another couple of weeks to finish it off.
0:54:03 > 0:54:06Then his elder daughter can move in with her boyfriend
0:54:06 > 0:54:08and start paying rent.
0:54:08 > 0:54:12But how much input did she have to the changes Roland's made here?
0:54:13 > 0:54:1785% is my own doing, er...
0:54:17 > 0:54:19a little bit of input from her.
0:54:19 > 0:54:22Nudge, wink and things like that.
0:54:22 > 0:54:25# My girl, my girl... #
0:54:25 > 0:54:29So his girl may have done a little bit of arm twisting here and there,
0:54:29 > 0:54:31but the end result is certainly impressive.
0:54:31 > 0:54:35However, an extra bedroom, new bathroom, kitchen,
0:54:35 > 0:54:36off-road parking, central heating
0:54:36 > 0:54:41and a comprehensive refurbishment don't come cheap.
0:54:41 > 0:54:44Originally, I said 15-20.
0:54:44 > 0:54:50Er...think I've spent about 25
0:54:50 > 0:54:54or just over with legal fees.
0:54:54 > 0:55:01Well, a spend of £25,000 on top of an £81,500 purchase price
0:55:01 > 0:55:07takes Roland's outlay to a total of £106,500 without costs and fees.
0:55:07 > 0:55:11So, has his return to the building trade paid dividends?
0:55:11 > 0:55:15What do two local property experts think of his efforts here?
0:55:15 > 0:55:18I go in loads and loads of houses and I see them as they were
0:55:18 > 0:55:22and I see them when they've been renovated and improved.
0:55:22 > 0:55:24I think this is one of those houses
0:55:24 > 0:55:27where I've seen the biggest transformation
0:55:27 > 0:55:28that I've seen for a long, long time.
0:55:28 > 0:55:30It's totally changed, hasn't it?
0:55:30 > 0:55:33The renovation programme has been done superb.
0:55:33 > 0:55:35Very, very tasteful.
0:55:35 > 0:55:37Typically neutral colours.
0:55:37 > 0:55:40And the whole thing has got an air of quality about it.
0:55:40 > 0:55:44The estate agents reckon it could sell for £125,000,
0:55:44 > 0:55:49which would give Roland a possible pre-tax profit of £18,500.
0:55:49 > 0:55:52But initially, this will be let to his daughter.
0:55:54 > 0:55:59You'd probably get a rental value of £525-550 a calendar month.
0:55:59 > 0:56:03I would value this property at around £550 a month.
0:56:03 > 0:56:06I was expecting 550,
0:56:06 > 0:56:12but my daughter will pay, like, 525.
0:56:12 > 0:56:16Even a rental return of £525 per calendar month
0:56:16 > 0:56:20would see an annual yield of above five percent, which isn't bad.
0:56:20 > 0:56:24But although getting a return on his investment is important for Roland,
0:56:24 > 0:56:27this refurbishment was about so much more.
0:56:27 > 0:56:31So, does he feel that it's aided him in his recovery from his stroke?
0:56:33 > 0:56:36Without a doubt. If you don't push yourself,
0:56:36 > 0:56:39if you sit in that chair and watch that television,
0:56:39 > 0:56:43apart from Homes Under the Hammer, then you won't get better.
0:56:43 > 0:56:45You've got to push yourself
0:56:45 > 0:56:47and get your full faculties back.
0:56:51 > 0:56:54We'll have three more properties to show you next time on Homes Under the Hammer.
0:56:54 > 0:56:59So join me and Lucy then to see what happens when the hammer falls.
0:56:59 > 0:57:01- Goodbye.- Goodbye.
0:57:03 > 0:57:05Subtitles by Red Bee Media Ltd