0:00:02 > 0:00:05Hello and welcome to the show. Now, we're both fascinated by property -
0:00:05 > 0:00:08its location, its value for money,
0:00:08 > 0:00:10oh, and its potential to make money.
0:00:10 > 0:00:13Absolutely. Get it right and you could reap financial rewards.
0:00:13 > 0:00:16Get it wrong, whoa, that could be a costly mistake.
0:00:16 > 0:00:17Well, a good place to try
0:00:17 > 0:00:20and find a good bargain is to head to the auctions.
0:00:49 > 0:00:53Burnley in Lancashire, home of the Clarets and Sir Ian McKellen
0:00:53 > 0:00:58and, recently, given the title of Britain's Most Enterprising Town.
0:00:58 > 0:01:01Well, the property I'm here to see is just under a mile
0:01:01 > 0:01:03from Burnley town centre.
0:01:03 > 0:01:05Now, with that kind of close proximity
0:01:05 > 0:01:09you would have thought the price, well, it's going to be pretty high.
0:01:09 > 0:01:11Oh, boy, would you be wrong.
0:01:13 > 0:01:17Two-bedroomed mid-terrace, guide price, what?
0:01:19 > 0:01:22£15,000 plus.
0:01:23 > 0:01:26Yeah, you heard me right. £15,000 plus.
0:01:28 > 0:01:31So, for that amount of money, not expecting a lot.
0:01:31 > 0:01:33What have we actually got, though? Oh!
0:01:33 > 0:01:35HE LAUGHS
0:01:35 > 0:01:36That's very low.
0:01:37 > 0:01:40Hopefully not a supporting wall or,
0:01:40 > 0:01:45if it is, then a proper RSJ beam has gone in across there.
0:01:45 > 0:01:50But this is the front sitting room and it's not a bad size.
0:01:50 > 0:01:53A few signs of damp on that front wall.
0:01:53 > 0:01:58That could be just the house not being lived in, perhaps,
0:01:58 > 0:02:01or something a bit more serious. But through to the rear of the property.
0:02:01 > 0:02:03Stairs up to your bedrooms there.
0:02:03 > 0:02:08And then a nice surprise, the rear sitting room a good, good size.
0:02:08 > 0:02:13With a sort of breakfast bar area and the kitchen integrated.
0:02:13 > 0:02:14HE CLEARS HIS THROAT
0:02:14 > 0:02:17However, as you can see...
0:02:21 > 0:02:24..not good. Obviously, some major problems going on here.
0:02:24 > 0:02:26Lots and lots and lots of damp
0:02:26 > 0:02:30and so much that the ceiling here has collapsed.
0:02:30 > 0:02:35That is not good and I want to know what's causing it.
0:02:36 > 0:02:40# Everybody's got a hole that they need filled
0:02:40 > 0:02:41# Come on!
0:02:41 > 0:02:43# Fill it up, Geoffrey! #
0:02:43 > 0:02:46Despite the unwanted hole in the ceiling, this house does
0:02:46 > 0:02:49still have some nice original features,
0:02:49 > 0:02:50even after the alterations.
0:02:52 > 0:02:56This shower room may require updating, but it's not a bad size
0:02:56 > 0:02:59and there should be room to squeeze a bath in if, well,
0:02:59 > 0:03:01the mood takes you.
0:03:01 > 0:03:04And one bedroom is bright and a good size
0:03:04 > 0:03:06but there's some more damp here.
0:03:06 > 0:03:11At the back, bedroom two has some pretty serious damp issues
0:03:11 > 0:03:13and it's directly above the kitchen.
0:03:14 > 0:03:18So, maybe the cause of those problems in the kitchen
0:03:18 > 0:03:21will be revealed when we come to the rear of our property
0:03:21 > 0:03:24which is accessed via this little alleyway here.
0:03:24 > 0:03:26That's our property there and, yeah, sure,
0:03:26 > 0:03:31the roof of the kitchen doesn't look in too brilliant a condition.
0:03:31 > 0:03:34Next door is this.
0:03:37 > 0:03:40I can't say for certain that this house has anything to do
0:03:40 > 0:03:44with the damp in the lot I'm viewing, but further investigation
0:03:44 > 0:03:47is a must and it might involve tracking down the owner.
0:03:49 > 0:03:52That issue aside, it would be worth getting the opinion of
0:03:52 > 0:03:57a local agent on this rather damp terrace guided at £15,000.
0:03:58 > 0:04:01The attraction to a buyer in this area would be that you're going
0:04:01 > 0:04:04to get over a 10% return on your investment per annum.
0:04:04 > 0:04:06You would need to spend some money on the damp.
0:04:06 > 0:04:09Once it's done right, you'll get a tenant in and you'll make a good return on it.
0:04:09 > 0:04:13A no-lose investment. That sounds like a no-brainer.
0:04:13 > 0:04:16So what kind of figures are we talking about?
0:04:16 > 0:04:18Once the work's been completed to the damp, to the windows
0:04:18 > 0:04:21and to the kitchen ceiling, I would estimate that you could be
0:04:21 > 0:04:25looking to achieve somewhere between £30,000 and £35,000.
0:04:25 > 0:04:27Well, with a guide price of £15,000,
0:04:27 > 0:04:30that leaves some room to make a profit,
0:04:30 > 0:04:33but what about the rental values?
0:04:33 > 0:04:37I would estimate that the tenant would probably pay somewhere around £350 per calendar month for it.
0:04:37 > 0:04:42Well, he can't get away from the fact that it's a very appealing guide price.
0:04:42 > 0:04:46However, closer investigation reveals...hmm...
0:04:46 > 0:04:48maybe not a bargain. Who knows?
0:04:48 > 0:04:52Let's see who went for it when it went under the hammer.
0:04:53 > 0:04:57On to Lot 258, it's Burnley, freehold, mid-terrace house.
0:04:57 > 0:04:59Start me at ten.
0:04:59 > 0:05:0010,000. Back right.
0:05:00 > 0:05:0411. 10 I am, make it 11.
0:05:04 > 0:05:0611 on my left. 12.
0:05:06 > 0:05:09It took a little time for the bidding to get going,
0:05:09 > 0:05:11but then things picked up.
0:05:11 > 0:05:15We rejoined the bidding at £23,000.
0:05:15 > 0:05:1723, sir. 24?
0:05:17 > 0:05:18No, OK.
0:05:18 > 0:05:2223. With you, second row. 24, anywhere else?
0:05:22 > 0:05:23First row, 23.
0:05:23 > 0:05:26Second time at 23. 24. 25.
0:05:27 > 0:05:30OK, your bid. 24,000. 25, anywhere else?
0:05:30 > 0:05:32First row, 24.
0:05:32 > 0:05:36Second time with 24, for the third and final time, £24,000. Your bid.
0:05:36 > 0:05:40Are we all done...at 24,000!
0:05:40 > 0:05:43The successful bid of 24,000 was made by Dean.
0:05:43 > 0:05:46It was his second property purchase at auction
0:05:46 > 0:05:50and I met him and his business partner, Paul, back at the house.
0:05:52 > 0:05:55- Dean, Paul, great to meet you both. - And you.- Pleased to meet you.
0:05:55 > 0:05:57Congratulations!
0:05:57 > 0:06:00The auction was actually in London, wasn't it? Is that where you're from?
0:06:00 > 0:06:02Yeah, yeah. I'm from east London.
0:06:02 > 0:06:04Yeah, both from east London.
0:06:04 > 0:06:07So what attracted you towards Burnley?
0:06:07 > 0:06:11Mainly the profit margin.
0:06:11 > 0:06:15In London, you're not getting nowhere near what you're getting up in the north.
0:06:15 > 0:06:18So is this what both of you do, sort of, full-time?
0:06:18 > 0:06:24- No. We both work for a major advertising company... - Right.- ..in London.
0:06:24 > 0:06:27I'm a manager, a training asset manager
0:06:27 > 0:06:30- and Dean's a multimedia technician. - Great.
0:06:30 > 0:06:33- What does that mean you actually do? - Stick posters on the wall!
0:06:33 > 0:06:34THEY LAUGH
0:06:34 > 0:06:35Fantastic!
0:06:35 > 0:06:39- Whereabouts do you stick the posters?- On the Underground.- Really?
0:06:39 > 0:06:41All the ones you see when you're on the Underground,
0:06:41 > 0:06:44when you're standing on the platform, the ones you see, across the track.
0:06:44 > 0:06:45Wow.
0:06:45 > 0:06:48- So, why this particular house, then?- It's cheap!
0:06:48 > 0:06:50THEY LAUGH
0:06:50 > 0:06:52We didn't even look at it, to tell you the truth.
0:06:52 > 0:06:56- You didn't look at it?- No, no. I know, we made the cardinal sin.
0:06:56 > 0:06:59'Too true, it is a cardinal sin on Hammer.
0:06:59 > 0:07:04'Dean and Paul saw this for the first time TODAY - not good.'
0:07:04 > 0:07:06So what did you think when you walked in?
0:07:06 > 0:07:08All right. A bit of damp...
0:07:08 > 0:07:11You're saying all right and you're sighing very heavily!
0:07:11 > 0:07:14No, it's not as bad as what we thought, erm...
0:07:14 > 0:07:17Yeah, the end of the day, it's not that we have to do a lot of clearing,
0:07:17 > 0:07:20it's just a lot of it is cosmetic, erm...
0:07:20 > 0:07:22as you will see.
0:07:22 > 0:07:24Walls are not too bad.
0:07:26 > 0:07:28Some of the walls are not too bad, should I say,
0:07:28 > 0:07:33- but, yeah, it shouldn't take too much. It's nothing that we can't do. There's nothing shocking.- Right.
0:07:33 > 0:07:36- It's just that at the back, next door, that worries me, that being derelict.- Yeah, yeah.
0:07:36 > 0:07:39We're making some enquiries and see if we can
0:07:39 > 0:07:41maybe purchase that one as well...
0:07:41 > 0:07:43- Right.- ..before we do anything here.
0:07:43 > 0:07:45- So if you could buy it, that would be ideal, wouldn't it?- Yeah.- Yeah.
0:07:45 > 0:07:48Dean is a trained painter and decorator.
0:07:48 > 0:07:51and they will both pitch in with the work,
0:07:51 > 0:07:54but at the same time, there's a lot going on here,
0:07:54 > 0:07:57so do they have a plan for this place?
0:07:57 > 0:08:00Erm, just a full renovation, really.
0:08:00 > 0:08:01Erm...
0:08:01 > 0:08:03strip back all the walls,
0:08:03 > 0:08:07all the flooring and just a general upgrade.
0:08:07 > 0:08:10- You've got the...- Rip that kitchen out as well. That's got to come straight out.
0:08:10 > 0:08:13Everything will come down.
0:08:13 > 0:08:17The fireplaces, I'm not too sure whether to keep them and just change the fires,
0:08:17 > 0:08:20cos we're just renting, we're not doing it to sell.
0:08:20 > 0:08:21so, at this stage,
0:08:21 > 0:08:23it'll just be a general makeover.
0:08:25 > 0:08:29'Dean and Paul will get professionals in to do the jobs that they can't,
0:08:29 > 0:08:30'like gas and electrics
0:08:30 > 0:08:34'and they have a budget set at between five and £15,000,
0:08:34 > 0:08:38'depending on what happens with the property next door.
0:08:38 > 0:08:41'But my worry is that the budget could soon become a distant memory,
0:08:41 > 0:08:44'especially when you remember they don't live nearby.
0:08:44 > 0:08:47'London is a bit of a commute to Burnley.'
0:08:47 > 0:08:50- Well, listen, congratulations.- Thank you very much.- Good luck with it.
0:08:50 > 0:08:54- Cheers.- Cheers, thank you. - Looking forward to seeing how you get on.- Yes.
0:08:54 > 0:08:57Well, yes, it's not a lot of money to pay for a house,
0:08:57 > 0:08:59but Dean and Paul,
0:08:59 > 0:09:04recognising they might have got themselves more of a problem than they'd bargained for
0:09:04 > 0:09:07and it all comes down to that house next door.
0:09:07 > 0:09:10Can they find out who owns it?
0:09:10 > 0:09:11Can they buy it?
0:09:11 > 0:09:15If not, will they be able to restore this property?
0:09:15 > 0:09:17You can find out later in the show.
0:09:21 > 0:09:25The Kent town of Paddock Wood was once at the centre of hop farming.
0:09:25 > 0:09:28Up to 8,000 seasonal workers would arrive in the town
0:09:28 > 0:09:30to help harvest the crop.
0:09:33 > 0:09:35Today's lot is within walking distance of the town,
0:09:35 > 0:09:38less than half a mile from the station.
0:09:39 > 0:09:41So, this is it.
0:09:41 > 0:09:43A two-bedroom detached bungalow
0:09:43 > 0:09:47and it sits on a substantial corner plot like this.
0:09:47 > 0:09:49But, first issue I can see straight away,
0:09:49 > 0:09:52well it appears to be non-standard construction.
0:09:52 > 0:09:55Now, the exterior is made from weatherboard cladding
0:09:55 > 0:09:58and getting a mortgage on a non-standard house?
0:09:58 > 0:10:01Well, it can sometimes be difficult.
0:10:01 > 0:10:05Any unconventional style of house or flat can raise
0:10:05 > 0:10:08issues about mortgageability, but if you look hard enough,
0:10:08 > 0:10:11you will very probably find a lender.
0:10:11 > 0:10:13If you were unlucky enough not to get a mortgage,
0:10:13 > 0:10:16then it would mean cold, hard cash.
0:10:16 > 0:10:21The guide price on this property is 195 to 205,000,
0:10:21 > 0:10:25and it is on a decent plot. There is off-street parking and a garage.
0:10:25 > 0:10:26So far, so good.
0:10:29 > 0:10:32I love the symmetry with this property.
0:10:32 > 0:10:35It feels like a little house on the prairie, all wood,
0:10:35 > 0:10:38nothing very solid or substantial.
0:10:38 > 0:10:40Now, the layout, internally.
0:10:40 > 0:10:43You've got a single bedroom to the left here.
0:10:44 > 0:10:48A nice toothpaste, mint green bathroom. Lovely.
0:10:48 > 0:10:52At the back of the house, a small kitchen and a big lounge
0:10:52 > 0:10:55and another bedroom. But there's some damage up there.
0:10:55 > 0:10:59I think there must have been a leak from a bath. Uh-oh!
0:10:59 > 0:11:02# Uh, oh, we're in trouble
0:11:02 > 0:11:05# Something's come along and it's burst our bubble... #
0:11:07 > 0:11:10And it was all going, er, reasonably well.
0:11:10 > 0:11:13That ceiling investigation is first on the to-do list.
0:11:13 > 0:11:15I'm thinking the next thing would be sorting out
0:11:15 > 0:11:19insulation in the walls and the floors to meet modern regulations.
0:11:21 > 0:11:25So the bungalow, as it stands, is quite small, but it sits on a
0:11:25 > 0:11:30really nice large plot, so there is definitely potential to extend here.
0:11:30 > 0:11:33Alternatively, there is the option of demolishing what is here
0:11:33 > 0:11:36and building something new.
0:11:36 > 0:11:40However, this property has a rather chequered planning past.
0:11:40 > 0:11:41Ready for this?
0:11:41 > 0:11:45In 2011, and again in early 2012,
0:11:45 > 0:11:46permission was sought to
0:11:46 > 0:11:51knock this down and replace it with a pair of semidetached houses.
0:11:51 > 0:11:54Both times the planners refused permission.
0:11:54 > 0:11:57Then an application was made to substantially extend
0:11:57 > 0:11:59the existing dwelling, and again
0:11:59 > 0:12:02THAT was refused permission.
0:12:02 > 0:12:04And as if that was not enough, there's
0:12:04 > 0:12:07also a restrictive covenant in place,
0:12:07 > 0:12:11so you can't build anything above 0.9 of a metre forward of the
0:12:11 > 0:12:15existing building, so this will definitely be a tricky development.
0:12:15 > 0:12:18What would a local estate agent advise?
0:12:18 > 0:12:21I think it needs substantial redevelopment.
0:12:21 > 0:12:25So much so, it is... I would see it as a plot rather than a property
0:12:25 > 0:12:26to develop.
0:12:26 > 0:12:28And what does the agent think the bungalow could be worth,
0:12:28 > 0:12:32renovated as is or as a new build?
0:12:32 > 0:12:34If it were renovated in its current configuration,
0:12:34 > 0:12:38you should get in the region of £240,000.
0:12:38 > 0:12:42If you were to flatten it and build a new property of maybe three
0:12:42 > 0:12:46bedrooms, you should get in the region of £350,000.
0:12:47 > 0:12:48And what about rental?
0:12:49 > 0:12:52Rental, on a two-bedroom bungalow,
0:12:52 > 0:12:56would probably rent for about £900 per calendar month.
0:12:56 > 0:12:58A new build, three or four bedroom house, could be
0:12:58 > 0:13:01in the region of £1,500 per calendar month.
0:13:01 > 0:13:04There are a lot of potential pitfalls with this one.
0:13:04 > 0:13:07Let's find out who bid for it at the auction.
0:13:08 > 0:13:10A detached bungalow on a good-sized corner plot,
0:13:10 > 0:13:13close to the centre of Paddock Wood and the railway station, with
0:13:13 > 0:13:17good access up to London, so 190 I'm looking for to start me. 190.
0:13:17 > 0:13:21I'm obliged, £190,000, I'm on the way. 190. Now two.
0:13:21 > 0:13:24192. 192. And four.
0:13:24 > 0:13:26194. And six.
0:13:26 > 0:13:31And eight. And 200. And two. 202.
0:13:31 > 0:13:34It's with you, sir, at 200. 202 I want.
0:13:34 > 0:13:37It's worth more than this. £200,000 I've got.
0:13:37 > 0:13:40For the first time, then, at £200,000, sitting there on my
0:13:40 > 0:13:43right-hand side. You're coming back one more time, it's your chance?
0:13:43 > 0:13:46For the second time at £200,000...
0:13:46 > 0:13:48If not, for the third and final time,
0:13:48 > 0:13:51sitting over on my right-hand side, at £200,000,
0:13:51 > 0:13:53done.
0:13:53 > 0:13:56Sold, it is yours, sir, for £200,000.
0:13:56 > 0:14:00And that delighted buyer paying £200,000 was David,
0:14:00 > 0:14:03who was at the auction with his wife Marie and their daughter.
0:14:06 > 0:14:08David, a chartered surveyor, and his wife Marie,
0:14:08 > 0:14:12a retired headmistress, currently live locally in Paddock Wood,
0:14:12 > 0:14:15and they bought the bungalow as a new home for them and their kids
0:14:15 > 0:14:16Niamh and Doug.
0:14:19 > 0:14:22I met up with them back at the property to find out their plans.
0:14:24 > 0:14:28Congratulations. I want to know why you wanted to buy this at auction.
0:14:28 > 0:14:30We had originally thought we might retire to the West Country,
0:14:30 > 0:14:34but all of our friends and our family are round here.
0:14:34 > 0:14:38And we thought that in our twilight years we wanted to be close to them.
0:14:38 > 0:14:39It makes sense.
0:14:39 > 0:14:43We're probably going to knock it down and start again.
0:14:43 > 0:14:44Dun, dun, dun!
0:14:44 > 0:14:47I was waiting for those three words, "Knock it down."
0:14:47 > 0:14:50- You're going to knock it down?- Yes. - You're going to knock it down.
0:14:54 > 0:14:57The couple are looking to downsize from their current property,
0:14:57 > 0:15:01and ideally build a new home that will tick all the boxes that
0:15:01 > 0:15:03Marie, a keen artist, has drawn up.
0:15:05 > 0:15:08I want lots of light, a really big kitchen.
0:15:08 > 0:15:12Look at Marie's face light up here. Go for it.
0:15:12 > 0:15:15And also, because of the way the building will be configured,
0:15:15 > 0:15:17I'll be able to have a room that
0:15:17 > 0:15:20I can do my artwork in, as well. Separate to the house.
0:15:20 > 0:15:23Do you feel, with the property as it is, you just couldn't achieve that?
0:15:23 > 0:15:26I would rather build something that was striking, innovative,
0:15:26 > 0:15:30- great design... - 21st-century.- 21st-century.
0:15:30 > 0:15:33I mean, to convert this, it's just an uphill task.
0:15:35 > 0:15:36I hear what David is saying,
0:15:36 > 0:15:39but sometimes planning can be an uphill task too, and this
0:15:39 > 0:15:43property does have a chequered past as far as that's concerned.
0:15:43 > 0:15:47Undaunted, David has his ideas already on paper.
0:15:48 > 0:15:50Can I show you firstly, that is
0:15:50 > 0:15:53what we don't need planning permission for.
0:15:53 > 0:15:56- Wow, so you've got a complete separate structure along the side. - Yeah.
0:15:56 > 0:15:59Is that the art room? Hold on a minute, Marie, I mean, that is
0:15:59 > 0:16:03- almost as big as the house itself. - I know, I know. I need space.
0:16:03 > 0:16:07Well, also, it will be my office as well. Because I work from home.
0:16:07 > 0:16:10- So it will be the art room, the office, you know...- And a bar.
0:16:10 > 0:16:12- And a bar, of course. - MARIE LAUGHS
0:16:12 > 0:16:15So I can see that's just with an extension used within
0:16:15 > 0:16:18- permitted development.- That is the worst case scenario.
0:16:18 > 0:16:21Marie said it looks like a factory, and I think it probably does a bit.
0:16:21 > 0:16:24OK. So, well, that's plan B.
0:16:24 > 0:16:26What does plan A look like?
0:16:26 > 0:16:29It's quite contemporary, it's striking and much bigger windows.
0:16:29 > 0:16:33Lots of space. But again, it makes your second area,
0:16:33 > 0:16:37you know, your office/art room/bar. Tell me,
0:16:37 > 0:16:41- what sort of budget have you got for this?- I would say about 150,000.
0:16:41 > 0:16:44Yes, if it ends up at 200... so what?
0:16:44 > 0:16:47And how long is it going to take you to complete the build, what would you say?
0:16:47 > 0:16:51Three or four months to get planning permission, six to nine months to build it.
0:16:51 > 0:16:53If it takes three years, it doesn't really matter.
0:16:53 > 0:16:55The important thing is we do it right.
0:16:55 > 0:16:57Congratulations, I'm really excited for you.
0:16:57 > 0:17:00And I think this is the right thing for you to do at this time in your lives.
0:17:00 > 0:17:03- Thank you.- Thanks ever so much. Nice to meet you.
0:17:04 > 0:17:08Ideally, David and Marie want to knock this old bungalow down
0:17:08 > 0:17:09and build a new home.
0:17:09 > 0:17:12They've never built their own home before, and the property, well,
0:17:12 > 0:17:16it already has a bit of history in terms of planning refusals.
0:17:16 > 0:17:21Will David and Marie and the kids be able to build what they want here?
0:17:21 > 0:17:24Or will they have to compromise their plans?
0:17:24 > 0:17:26You can find out how it goes for them later in the programme.
0:17:33 > 0:17:36Welcome back to Burnley, in the north-west of England,
0:17:36 > 0:17:39where we were looking at this two-bed mid-terraced house.
0:17:39 > 0:17:42Situated just a mile from the town centre,
0:17:42 > 0:17:47it had a very low guide price of just £15,000 plus.
0:17:47 > 0:17:50Not even dated decor could explain that,
0:17:50 > 0:17:52so I wonder what could explain it.
0:17:56 > 0:17:58Lots and lots and lots of damp,
0:17:58 > 0:18:02and so much that the ceiling here has collapsed.
0:18:02 > 0:18:05Ah, that will be the reason, then.
0:18:05 > 0:18:08Six months later and we return to Burnley to see
0:18:08 > 0:18:12if our London lads had a good effect on this damp dwelling.
0:18:27 > 0:18:29It's all looking fresh,
0:18:29 > 0:18:33clean and there's definitely a decor statement or two.
0:18:33 > 0:18:36More importantly, it all looks dry.
0:18:36 > 0:18:37Not a whiff of damp.
0:18:37 > 0:18:41So how have they resolved those horrendous damp issues?
0:18:44 > 0:18:49We've had the roof stripped back completely and re-laid.
0:18:49 > 0:18:53All the rendering on the property to make it watertight.
0:18:53 > 0:18:56Everything stripped back, really, to the brickwork.
0:18:58 > 0:19:00A new bathroom, new kitchen.
0:19:00 > 0:19:02Complete top to bottom, really.
0:19:03 > 0:19:05Well done, lads.
0:19:05 > 0:19:10It can sometimes mean extra cost, and it definitely means extra work,
0:19:10 > 0:19:14but I think stripping it back was exactly what this place needed.
0:19:14 > 0:19:18But I'm only seeing one property renovation project here.
0:19:18 > 0:19:22What happened to the plan of trying to buy next door?
0:19:22 > 0:19:25Yeah, we were thinking of buying next-door's property
0:19:25 > 0:19:29because it would enhance the value of this property, having that
0:19:29 > 0:19:31property done up as well.
0:19:31 > 0:19:35But we couldn't get hold of the landlord at all.
0:19:35 > 0:19:38Of course, part of the reason Paul and Dean hadn't seen
0:19:38 > 0:19:41either property was because they actually lived in London.
0:19:41 > 0:19:45How was it developing a property 250 miles away from home?
0:19:46 > 0:19:50The biggest problem I suppose we had was the travelling,
0:19:50 > 0:19:53because Dean doesn't drive, so it was always on me.
0:19:53 > 0:19:56So we'd drive home from here, five or six-hour drive,
0:19:56 > 0:20:00and then straight to work that night. So we thought it would take
0:20:00 > 0:20:02between three and four months.
0:20:02 > 0:20:06- I think it has taken just under six...- Just under six.
0:20:06 > 0:20:10That sounds like some gruelling shifts Paul and Dean have put in,
0:20:10 > 0:20:14but it's always worth remembering that's what has to be done
0:20:14 > 0:20:17if you are going to combine development with a full-time job.
0:20:17 > 0:20:19Will all that hard work have helped them
0:20:19 > 0:20:22keep to their maximum budget of 15,000?
0:20:22 > 0:20:24We've come in within budget.
0:20:24 > 0:20:28- I think we've...- About 10,500. - Yes, about 10,500.
0:20:28 > 0:20:29Give or take 1,000 here.
0:20:29 > 0:20:31And we've got the outside to do,
0:20:31 > 0:20:35so we haven't actually done the final figure, but it is around that.
0:20:35 > 0:20:37It won't go over 11.
0:20:37 > 0:20:41£11,000 on top of their purchase price of 24,000
0:20:41 > 0:20:45brings Paul and Dean's total spend to £35,000.
0:20:47 > 0:20:50We've asked along two local property experts to see if these figures
0:20:50 > 0:20:55add up to some profit for Paul and Dean's blind buying experiment.
0:20:57 > 0:20:59This is the first time I've seen the property.
0:20:59 > 0:21:02It's been done to a great finish, perfect for first-time buyers
0:21:02 > 0:21:05and very soon could make an ideal family home.
0:21:05 > 0:21:07The layout works really well.
0:21:07 > 0:21:10In particular, I like the kitchen/diner downstairs,
0:21:10 > 0:21:13I think it's a lovely room for a family environment.
0:21:13 > 0:21:17So, yes, absolutely worked really well.
0:21:17 > 0:21:19If Dean and Paul were to put this on the market,
0:21:19 > 0:21:23could they expect any profit on their £35,000 spend?
0:21:25 > 0:21:26In my opinion,
0:21:26 > 0:21:30I would expect this property to sell for offers over £45,000.
0:21:30 > 0:21:33If the property was to be placed on the market by the owner,
0:21:33 > 0:21:36in the current environment, I think a sale price could be
0:21:36 > 0:21:40achieved from anything from £40,000 upwards to £44,000.
0:21:41 > 0:21:44This would give Paul and Dean a profit of between five
0:21:44 > 0:21:48and £10,000, minus the usual taxes and expenses.
0:21:48 > 0:21:50But they're looking to rent the property.
0:21:50 > 0:21:53What could they hope for then?
0:21:53 > 0:21:55The rental market is really strong at the moment. I would expect
0:21:55 > 0:22:00this property to achieve in the region of £350 per calendar month.
0:22:00 > 0:22:04If the property went on the rental market currently, it should achieve
0:22:04 > 0:22:08anything from £365 per calendar month
0:22:08 > 0:22:11to £375 per calendar month.
0:22:11 > 0:22:12It is good, really.
0:22:12 > 0:22:15Yeah. It is what we thought, it is what we budgeted for.
0:22:15 > 0:22:19I've got a tenant moving in when you leave and we're going to...
0:22:19 > 0:22:22- It is more than that.- 385.- It is more than that.
0:22:22 > 0:22:24So it's £10 more than what...
0:22:24 > 0:22:29With a tenant already in place, paying £385 per calendar month,
0:22:29 > 0:22:33Paul and Dean can look forward to a yield of over 13%,
0:22:33 > 0:22:34a good result.
0:22:34 > 0:22:37So how have they found the whole experience?
0:22:38 > 0:22:41- Tiring.- Yeah, it's been tiring.
0:22:41 > 0:22:45- It's been a bit knackering but... - It's well worth...- Well worthwhile.
0:22:51 > 0:22:55Two and a half miles east of Derby city centre lies the large
0:22:55 > 0:22:57suburb of Chaddesden.
0:22:58 > 0:23:01Once a village in its own right, it is
0:23:01 > 0:23:05now a highly popular residential suburb of Derby with good
0:23:05 > 0:23:08local amenities and transport links into the city centre,
0:23:08 > 0:23:12so it's a good bet for buying a property at the auction.
0:23:14 > 0:23:16So, what am I here to see?
0:23:16 > 0:23:20Well, it's a really well-located property in this popular
0:23:20 > 0:23:21residential area.
0:23:21 > 0:23:24Three-bedroomed semidetached, had a guide price
0:23:24 > 0:23:27of £70,000 plus.
0:23:27 > 0:23:31Looks like it's seen better days, but let's take a look inside.
0:23:31 > 0:23:34Interestingly enough, the entrance...
0:23:34 > 0:23:36front door, it's actually on the side!
0:23:36 > 0:23:39MUSIC: Side Effects by Mariah Carey
0:23:42 > 0:23:45Now, that whole entrance door on the side thing does give
0:23:45 > 0:23:49a slightly unusual layout when you come through the door.
0:23:49 > 0:23:52Facing you, little hallway. Stairs up to the bedrooms.
0:23:52 > 0:23:56And on the right-hand side here, you've got this little front sitting room.
0:23:56 > 0:23:59Love this. Fantastic.
0:23:59 > 0:24:01Um, yeah.
0:24:01 > 0:24:03A bit old-fashioned, but I bet that really pumps out the heat.
0:24:03 > 0:24:07You would probably want to replace it, though, wouldn't you? It's a nice room, though.
0:24:07 > 0:24:10Through this way, though, across that little hallway,
0:24:10 > 0:24:12into your rear living room.
0:24:12 > 0:24:15Again, a really nice-sized space.
0:24:15 > 0:24:18That's a bit strange, it's sort of a half cellar.
0:24:18 > 0:24:21Doesn't go down very far, but there's a few steps into something.
0:24:21 > 0:24:23I don't know what you'd use that for.
0:24:23 > 0:24:25And I imagine this is where the house originally ended.
0:24:25 > 0:24:29What you've got now is this, a single-storey extension.
0:24:29 > 0:24:32I say single-storey, it's got a sloping roof, which is really nice.
0:24:32 > 0:24:34Stick a couple of roof lights in there,
0:24:34 > 0:24:35throw a bit more light in here.
0:24:35 > 0:24:38As a kitchen, it's good, I like the location,
0:24:38 > 0:24:40views out onto the back garden.
0:24:40 > 0:24:43You've also got a loo there, which is really great.
0:24:43 > 0:24:46So all the sort of sewerage stuff and pipework is all there for you.
0:24:46 > 0:24:48A bit of a storage cupboard.
0:24:48 > 0:24:51Straight away a house with lots of potential.
0:24:51 > 0:24:55Up the staircase that faces the entrance of the aforementioned
0:24:55 > 0:24:57three bedrooms.
0:24:57 > 0:25:00A double at the front, a smaller room to the side.
0:25:03 > 0:25:05And a third to the rear.
0:25:08 > 0:25:11And, phew, an upstairs bathroom,
0:25:11 > 0:25:13but with no WC.
0:25:13 > 0:25:16Someone will have to spend a penny or two in here to remedy that.
0:25:21 > 0:25:24But the rear of the property, ha-ha, a fantastic surprise.
0:25:24 > 0:25:28Cos down these steps and you are into...
0:25:28 > 0:25:30HE CHUCKLES
0:25:30 > 0:25:32..a bit of a garden wonderland.
0:25:32 > 0:25:34Look at this! Fantastic. Let's explore.
0:25:34 > 0:25:38I don't know how far it is to the back, but we've got some lovely shrubs here.
0:25:38 > 0:25:40I mean, it's a case of chopping some of this back
0:25:40 > 0:25:44so you can see what you've got. But you've got apple trees.
0:25:44 > 0:25:47Um. I don't know what else.
0:25:47 > 0:25:50A bit of a wildlife ha-a-aven, too, at the moment.
0:25:50 > 0:25:52This is good! But, er,
0:25:52 > 0:25:55yes, definitely a good few hours with a strimmer,
0:25:55 > 0:25:58but actually joy of joys, uh, lies at the back.
0:25:58 > 0:25:59HE GROANS
0:25:59 > 0:26:01Oh!
0:26:01 > 0:26:03Every gardener's dream.
0:26:03 > 0:26:04A garden shed.
0:26:05 > 0:26:08Dig further and in the undergrowth there's a garage too,
0:26:08 > 0:26:12all for the guide price of £70,000.
0:26:12 > 0:26:16The garden alone has got me smitten, but big, deep breath
0:26:16 > 0:26:19and sensible head on, there is a lot of work to be done.
0:26:19 > 0:26:23We asked the auctioneer who sold it what he thought of the property
0:26:23 > 0:26:26and its prospects.
0:26:26 > 0:26:29The unusual thing about this house is it seems to be sort of narrow,
0:26:29 > 0:26:31one room wide, but quite deep.
0:26:31 > 0:26:35And yet you've still got three bedrooms and a bathroom upstairs.
0:26:35 > 0:26:37I think the first thing you'd address with a house like this is
0:26:37 > 0:26:40the kitchen arrangement. Once renovated,
0:26:40 > 0:26:44this would have a value on today's market of about £105,000.
0:26:44 > 0:26:46In terms of rental,
0:26:46 > 0:26:51the rental value would be in the order of £525 a calendar month.
0:26:52 > 0:26:54Well, what is there not to like about this house?
0:26:54 > 0:26:58It's solidly built, it's in a good location, great garden.
0:26:58 > 0:26:59Yeah, an easy one to go for.
0:26:59 > 0:27:02Let's see who agreed when it went under the hammer.
0:27:04 > 0:27:06A three-bedroom, semidetached house,
0:27:06 > 0:27:08behind Chaddesden shopping area.
0:27:08 > 0:27:11There is a proxy bid in on this, and I will start
0:27:11 > 0:27:14the bidding at £75,000.
0:27:14 > 0:27:1776 I've got. 77 with me.
0:27:17 > 0:27:2077. 78 for you, sir. 78.
0:27:20 > 0:27:2379. 79. 80.
0:27:24 > 0:27:2780,000. 81.
0:27:27 > 0:27:3182. I'll take 500 if it will help you.
0:27:31 > 0:27:3381,500.
0:27:33 > 0:27:3581,500, that's stymied me.
0:27:35 > 0:27:3882,000, I'm in. 82,000.
0:27:38 > 0:27:4182,500, I'm out. £82,500.
0:27:41 > 0:27:4383 somewhere else.
0:27:43 > 0:27:45At 82,500, once,
0:27:45 > 0:27:47twice, third time...
0:27:47 > 0:27:50sold at 82,500. Thank you.
0:27:53 > 0:27:58Beating the auctioneer's proxy bid with an £82,500 bid of his own
0:27:58 > 0:27:59was Dave.
0:28:04 > 0:28:06Dave and his wife Elaine bought the house
0:28:06 > 0:28:11and its amazing garden for their two daughters, Jade and Abby.
0:28:11 > 0:28:14Dave works as a domestic energy assessor,
0:28:14 > 0:28:18and Elaine works in HR for a local car manufacturing company.
0:28:18 > 0:28:21And they live just a mile down the road.
0:28:21 > 0:28:24- Elaine, Dave, great to meet you both.- Pleased to meet you.
0:28:24 > 0:28:27Congratulations. So, why did you want to buy this place?
0:28:27 > 0:28:29We thought it was a good potential for the children.
0:28:29 > 0:28:32And we thought it would be nice to sort of set them
0:28:32 > 0:28:34- on the property ladder.- Great!
0:28:34 > 0:28:37They've both been to university, they are both just graduating.
0:28:37 > 0:28:40You know, we'll renovate it for them.
0:28:40 > 0:28:42And then they take over,
0:28:42 > 0:28:45but obviously Jade and Abby are going to sort of say what they want.
0:28:45 > 0:28:48I mean, obviously we are going to do sort of the plastering,
0:28:48 > 0:28:51we know that sort of thing that needs doing, but everything else,
0:28:51 > 0:28:55you know, they might decide what they want doing, the type of kitchen, etc.
0:28:55 > 0:28:58There's going to be lots of children watching, going,
0:28:58 > 0:28:59"I wish my parents were like that!"
0:28:59 > 0:29:01THEY LAUGH
0:29:01 > 0:29:05- Well, it's a start, isn't it? - It's brilliant.- Yes.
0:29:05 > 0:29:07They've been good girls.
0:29:07 > 0:29:10You know, they've done well in what they've done and graduated.
0:29:10 > 0:29:13- So it is just a way of showing our appreciation, really.- Good on you.
0:29:13 > 0:29:16So what do your daughters think about all of this?
0:29:16 > 0:29:18Well, they're over the moon.
0:29:18 > 0:29:21The oldest one is with us at the moment,
0:29:21 > 0:29:23but the youngest one is touring round Europe.
0:29:23 > 0:29:26They are really excited about it and they are going to both have a
0:29:26 > 0:29:30big input in, like my wife says, what goes into the property,
0:29:30 > 0:29:32decor and design.
0:29:32 > 0:29:35- So what about internal layout, is it going to stay the same?- Yes.
0:29:35 > 0:29:37The only difference that we are going to do is
0:29:37 > 0:29:41the kitchen out the back. It has been split.
0:29:41 > 0:29:44There is a toilet in there, which we're going to move upstairs,
0:29:44 > 0:29:49and a store cupboard. And hopefully we can knock the walls out
0:29:49 > 0:29:51and make that bigger.
0:29:51 > 0:29:54- But keep the wall in between here and there?- Yes. Maybe...
0:29:54 > 0:29:57- Because this funny little window is a bit weird, isn't it?- It is, yes.
0:29:57 > 0:30:02And we think it doesn't shed a lot of light in because there's not many windows in the kitchen,
0:30:02 > 0:30:06so hopefully we are going to put a couple of Veluxes in the roof
0:30:06 > 0:30:10- and then make this double doors into here.- Nice.
0:30:10 > 0:30:12And then that will shed a lot more light into here
0:30:12 > 0:30:15because there's only one..one large window there.
0:30:15 > 0:30:20Great ideas to get more light down here and improve that kitchen.
0:30:20 > 0:30:24They also plan to do a simple renovation upstairs,
0:30:24 > 0:30:27whilst removing old water tanks hiding behind those
0:30:27 > 0:30:30cupboards, in order to fit a WC up here.
0:30:32 > 0:30:35The couple have a budget of £10,000 and hope to get the girls
0:30:35 > 0:30:39settled in here in six months' time.
0:30:39 > 0:30:42And it just keeps getting better for those lucky sisters.
0:30:44 > 0:30:47And then actually doing the work, who is going to do the work?
0:30:47 > 0:30:49I will do the majority of the work.
0:30:49 > 0:30:51Are you experienced in that sort of thing?
0:30:51 > 0:30:55I've done a couple of properties up, mainly for her mum.
0:30:55 > 0:30:58- Mmm.- We bought, or her mum bought, a bungalow that was
0:30:58 > 0:31:01sort of virtually derelict, and we have done that up.
0:31:01 > 0:31:03Yes, so we have done it once and we are going to try it again.
0:31:03 > 0:31:05And are you going to get involved helping out?
0:31:05 > 0:31:07Yes, yes, I am hands-on, definitely,
0:31:07 > 0:31:10yes. Wherever I can use a screwdriver or hammer, I'll be there.
0:31:10 > 0:31:12THEY LAUGH
0:31:12 > 0:31:14Do you have any sort of things you particularly enjoy doing?
0:31:14 > 0:31:17The garden is my forte.
0:31:17 > 0:31:19I can't wait to get started on that garden.
0:31:19 > 0:31:22Any idea what you will do to the garden?
0:31:22 > 0:31:24Well, I think, basically, we are going to sort of chop
0:31:24 > 0:31:28a lot of the trees down and make them more sort of...
0:31:28 > 0:31:29at a reasonable height.
0:31:29 > 0:31:31But I do want to keep some of the bushes and trees,
0:31:31 > 0:31:33to give it a bit of character.
0:31:33 > 0:31:36I am already doing all of my cuttings off my own garden at home ready.
0:31:36 > 0:31:39SHE LAUGHS So we can pop them in.
0:31:39 > 0:31:42And then decking out from the back door.
0:31:42 > 0:31:45And then steps down to a lawn.
0:31:45 > 0:31:48- Like she says. And then trees amongst the lawn and everything. - That sounds lovely.
0:31:48 > 0:31:51There is an apple tree down there somewhere.
0:31:51 > 0:31:54Um... And, yes, hopefully we'll keep that in.
0:31:54 > 0:31:59- But certainly it is a really exciting project.- Listen, congratulations.
0:31:59 > 0:32:01Well done for being such a good mum and dad,
0:32:01 > 0:32:03and we look forward to seeing how you get on.
0:32:03 > 0:32:05Yeah, great.
0:32:06 > 0:32:07Well, what a great thing Dave
0:32:07 > 0:32:09and Elaine are doing for their daughters,
0:32:09 > 0:32:13and a great house to boot. I can't wait to see what they do with it.
0:32:13 > 0:32:17But what will their daughters decide to do with it once it's completed?
0:32:17 > 0:32:19You can find out later in the show.
0:32:23 > 0:32:26Well, we've already seen how one property has got on,
0:32:26 > 0:32:27what about the other two?
0:32:27 > 0:32:30Yes, were they straightforward, or were there a few surprises?
0:32:30 > 0:32:33- Mmm.- Let's find out.
0:32:33 > 0:32:36We're back in Paddock Wood, in Kent, to catch up with this
0:32:36 > 0:32:38detached bungalow, guided at
0:32:38 > 0:32:41195 to 205,000.
0:32:41 > 0:32:44It was a non-standard construction, which can prove
0:32:44 > 0:32:46tricky for those needing a mortgage.
0:32:46 > 0:32:49Then there were planning problems.
0:32:49 > 0:32:51Two years on, we return to...
0:32:55 > 0:32:58..no sign of a fabulous new family home.
0:32:58 > 0:32:59Oh!
0:32:59 > 0:33:02MUSIC: Ghost Town by The Specials
0:33:06 > 0:33:09Time for David and Marie to fill us in.
0:33:09 > 0:33:11It took us a year to get planning permission, in effect.
0:33:11 > 0:33:15The architect started off with a really innovative scheme,
0:33:15 > 0:33:18which was effectively two opposing cheeses.
0:33:19 > 0:33:23It sounds really wild and wacky, and we loved the scheme.
0:33:23 > 0:33:25But the planners weren't quite so enamoured.
0:33:25 > 0:33:29Effectively they said, "Love the scheme, but not here,
0:33:29 > 0:33:31"because it doesn't fit in."
0:33:31 > 0:33:34MUSIC: A Change Would Do You Good by Sheryl Crow
0:33:34 > 0:33:38Hmm. Two cheeses sounds crackers, but I like it.
0:33:38 > 0:33:41However, even if you're not in a conservation area,
0:33:41 > 0:33:44planners might be reluctant to let you build anything that
0:33:44 > 0:33:46doesn't fit in with the streetscape.
0:33:46 > 0:33:49It can end up being a bit of a compromise, but in the end,
0:33:49 > 0:33:53the architects came up with a plan that worked for everybody.
0:33:53 > 0:33:56It was very...very modern,
0:33:56 > 0:33:59very light, very open, very adaptable,
0:33:59 > 0:34:02which is exactly what we asked for.
0:34:02 > 0:34:05And by the time we got to that stage, the planners were happy,
0:34:05 > 0:34:09because it was very eco, we were happy, the architects were happy.
0:34:10 > 0:34:13Brilliant. So, when does the work start?
0:34:13 > 0:34:16In this year, we've been looking to sell our current house,
0:34:16 > 0:34:18which is about a mile away from here.
0:34:19 > 0:34:23And unfortunately, the market didn't really like our existing
0:34:23 > 0:34:26house as much as the agents had told us.
0:34:26 > 0:34:28- Yes.- And the price kept on coming down and coming down.
0:34:28 > 0:34:32And then towards the end of August, early September, we just
0:34:32 > 0:34:36said, "We live in a beautiful house, we can in actual fact
0:34:36 > 0:34:40"create the flexible accommodation we need by having two flats upstairs."
0:34:40 > 0:34:45And the kids love the idea because they've lived there all their lives.
0:34:45 > 0:34:48As soon as we told our neighbours that we were not moving to the
0:34:48 > 0:34:50new site, they were delighted.
0:34:50 > 0:34:53- And they came round straightaway with a bottle of champagne. - Excellent.
0:34:53 > 0:34:56And when you've got neighbours like that, who've lived next door
0:34:56 > 0:35:00to you for so long and are so overjoyed you're not moving,
0:35:00 > 0:35:02I mean, what can you do?
0:35:02 > 0:35:04You know, you have to stay, don't you?
0:35:04 > 0:35:05I'll drink to that.
0:35:05 > 0:35:09So David and Marie might get a dream home at their current home,
0:35:09 > 0:35:11but there is an added bonus.
0:35:11 > 0:35:14They now have a big plot with planning permission.
0:35:14 > 0:35:18Two local estate agents can explain why that is so valuable.
0:35:18 > 0:35:21It allows the developer to just go straight into it
0:35:21 > 0:35:23and get on with what they need to do.
0:35:23 > 0:35:26Having the planning permission certainly adds value
0:35:26 > 0:35:28because it takes a lot of the hassle element out
0:35:28 > 0:35:31of the approach to the local council,
0:35:31 > 0:35:33makes the project more definite.
0:35:33 > 0:35:36Demolition cost, 9,000,
0:35:36 > 0:35:40and all the fees associated with planning cost around £26,000.
0:35:40 > 0:35:43Having paid £200,000 at auction,
0:35:43 > 0:35:47their total spend is £235,000.
0:35:47 > 0:35:50What is the plot, with planning permission, worth as it is?
0:35:51 > 0:35:55This plot of land, with the planning permission it currently has,
0:35:55 > 0:35:58I think it would be worth approximately £300,000.
0:35:58 > 0:36:01The value of this plot of land is valued between
0:36:01 > 0:36:05£280,000-£320,000.
0:36:05 > 0:36:09- I think they are pretty good, actually.- Very good, actually. Very pleased.- Very pleased, yes.
0:36:09 > 0:36:14At an average of 300,000, Marie and David could make a pre-tax
0:36:14 > 0:36:16profit of 65 grand,
0:36:16 > 0:36:19and they haven't even laid one brick.
0:36:19 > 0:36:24So would it be worth going ahead with building and then selling?
0:36:25 > 0:36:30If the property is built to plan, I believe we can sell it on for £450,000-£500,000.
0:36:30 > 0:36:34I think the finished property could reach
0:36:34 > 0:36:36in the region of £500,000,
0:36:36 > 0:36:38done to a nice specification.
0:36:38 > 0:36:41Taking the top value of £500,000,
0:36:41 > 0:36:44and based on David's £200,000 construction budget,
0:36:44 > 0:36:47Marie and David could make a profit of
0:36:47 > 0:36:51£65,000 before taxes and expenses.
0:36:51 > 0:36:55Same potential profit as just the plot, so why bother, I say?
0:36:55 > 0:36:57I think that's probably a bit on the light side.
0:36:57 > 0:37:00We are not looking at it as a single house, we are
0:37:00 > 0:37:03- looking at it as two houses.- It would have been great to live here,
0:37:03 > 0:37:06- but actually, we're really happy where we are going to stay.- Yeah.
0:37:06 > 0:37:09Well, they didn't get their dream retirement home here
0:37:09 > 0:37:11but, by converting their existing house,
0:37:11 > 0:37:14they will get two flats, and Marie will get her art studio.
0:37:14 > 0:37:18And they could still make a lot of profit on this plot.
0:37:18 > 0:37:20Any regrets?
0:37:20 > 0:37:22We're not in any hurry.
0:37:22 > 0:37:25This was always our long-term retirement plan.
0:37:25 > 0:37:27I've got a few years in the office yet.
0:37:27 > 0:37:30I've got to keep her in the style to which she's become accustomed.
0:37:30 > 0:37:33- I'd like to become accustomed.- You'd like to become accustomed. OK.
0:37:39 > 0:37:43Time now to return to Chaddesden on the outskirts of Derby.
0:37:43 > 0:37:48This three-bedroom semi had a guide price of £70,000 plus,
0:37:48 > 0:37:51and once I'd worked out the front door was on, well,
0:37:51 > 0:37:55on the side, I found it had some good size rooms,
0:37:55 > 0:37:59an extension out the back and a garden that went on...
0:37:59 > 0:38:02(ECHOING) ..for miles!
0:38:04 > 0:38:0815 months later and we are back in Chaddesden to see if
0:38:08 > 0:38:12Dave and Elaine have turned this into their daughters' dream home.
0:38:14 > 0:38:16# It feels just like it should
0:38:16 > 0:38:20# I wake up, this This is what it looks like
0:38:20 > 0:38:22# So don't miss this
0:38:22 > 0:38:25# This is what it looks like
0:38:25 > 0:38:27# So call on me
0:38:27 > 0:38:29# It feels just like it should
0:38:29 > 0:38:31# So call on me... #
0:38:31 > 0:38:33Good job, guys, and Dave and Elaine
0:38:33 > 0:38:36haven't just made cosmetic changes.
0:38:36 > 0:38:40There's new plumbing, new insulation, new electrics
0:38:40 > 0:38:43and, most importantly, they have moved that WC to the
0:38:43 > 0:38:46upstairs bathroom, freeing up the kitchen.
0:38:48 > 0:38:50We've done a lot of work in here.
0:38:50 > 0:38:53We've knocked a dividing wall down, that had the old toilet
0:38:53 > 0:38:56and a store cupboard in, to make the kitchen a lot bigger.
0:38:56 > 0:39:00We've put new doors in, which throws a lot more light into the kitchen
0:39:00 > 0:39:03and makes it look very spacious. And, er...
0:39:03 > 0:39:06Yeah, we're very pleased with it.
0:39:06 > 0:39:09A bigger, brighter kitchen and a toilet upstairs - simple,
0:39:09 > 0:39:11but good ideas.
0:39:13 > 0:39:16But moving a toilet and knocking down a wall pales in
0:39:16 > 0:39:21comparison to tackling that jungle of a back garden.
0:39:21 > 0:39:24We got a mini digger in
0:39:24 > 0:39:28and we spent a complete week
0:39:28 > 0:39:31with a mini digger on the garden.
0:39:39 > 0:39:41It's really nice now, you know,
0:39:41 > 0:39:45to open the patio doors straight onto...the decking.
0:39:45 > 0:39:48What we intend to do now, which we haven't done yet,
0:39:48 > 0:39:51is to completely fence the garden,
0:39:51 > 0:39:53which will make it really quite nice.
0:39:53 > 0:39:57However, although all this might have gone to plan,
0:39:57 > 0:39:59it would appear daughters Jade and Abbey
0:39:59 > 0:40:01will not be moving in after all.
0:40:01 > 0:40:04We're not sure whether they're going to move in or not.
0:40:04 > 0:40:07They're still thinking about it, but if they don't move in,
0:40:07 > 0:40:09we are going to move in.
0:40:09 > 0:40:12Renovate our property and go from there,
0:40:12 > 0:40:16so it will probably be another 18 months project, will it not?
0:40:16 > 0:40:18Yeah, definitely. THEY LAUGH
0:40:18 > 0:40:23# I guess I'll have to change my plan
0:40:23 > 0:40:26# I overlooked that point completely
0:40:26 > 0:40:31# Until the big affair began
0:40:31 > 0:40:35# I guess I'll have to change my plan... #
0:40:35 > 0:40:37Ah, well, best laid plans and all that.
0:40:37 > 0:40:40Never mind, this house is looking great,
0:40:40 > 0:40:44and it allows them to continue with their plans for more development.
0:40:44 > 0:40:46So all's well that ends well.
0:40:46 > 0:40:48Assuming they've not overspent.
0:40:51 > 0:40:54Right, the budget we set for ourselves was £10,000.
0:40:54 > 0:40:58That was mainly doing most of the jobs ourselves, which we have done.
0:40:58 > 0:41:02And we've now met £9,750,
0:41:02 > 0:41:06so we're well pleased that we're within the budget.
0:41:06 > 0:41:10Dave and Elaine bought the property for £82,500
0:41:10 > 0:41:14and have done well to keep just under that £10,000 budget,
0:41:14 > 0:41:18but doing all the work themselves has meant the development has
0:41:18 > 0:41:22taken 15 months rather than the intended six.
0:41:22 > 0:41:25We've asked along two local property experts to check
0:41:25 > 0:41:27out their hard work.
0:41:27 > 0:41:30I love the layout, it's nice to have the hallway in the middle.
0:41:30 > 0:41:33And then they've got the dining room, which is open-plan to the
0:41:33 > 0:41:36kitchen, which is a great feature.
0:41:36 > 0:41:39This is my first trip around the property.
0:41:39 > 0:41:41Having seen the original photographs,
0:41:41 > 0:41:43I was pleasantly surprised at the approach to the house.
0:41:43 > 0:41:47You've got the lovely big private garden to the rear with mature
0:41:47 > 0:41:50trees. And that lovely big deck area for eating out.
0:41:51 > 0:41:54Ah, picnics on the patio, what a good idea.
0:41:56 > 0:41:59Having spent £92,250, what could Dave
0:41:59 > 0:42:03and Elaine expect, were they to sell or rent the property?
0:42:05 > 0:42:10I would expect to achieve a sale price of up to £110,000.
0:42:10 > 0:42:14And a rental value of up to £550 per calendar month.
0:42:14 > 0:42:16To put this property up for sale,
0:42:16 > 0:42:19I would expect £115,000.
0:42:19 > 0:42:23To rent it out, maybe £550 per calendar month.
0:42:23 > 0:42:27That rental figure of £550 per calendar month would give them
0:42:27 > 0:42:31a pretty good yield of over 7%. Were they to sell,
0:42:31 > 0:42:35they would make a profit of £22,750
0:42:35 > 0:42:39minus the usual taxes and expenses.
0:42:39 > 0:42:42I think the figure he has given us, we'll be happy with that
0:42:42 > 0:42:45for the time being, we know we've got work to do.
0:42:45 > 0:42:46But I think that is it.
0:42:46 > 0:42:50When we've done it all, that figure will be what we were looking for.
0:42:50 > 0:42:54- And the rental is exactly what we thought.- Yes, definitely.
0:42:54 > 0:42:56Dave and Elaine kept to budget
0:42:56 > 0:43:00and now have a good potential profit to show for it.
0:43:00 > 0:43:02Would they do it again?
0:43:02 > 0:43:04We're not getting any younger and...
0:43:04 > 0:43:07- Speak for yourself. - THEY LAUGH
0:43:07 > 0:43:10We would think about another one, just a little bit less work. We don't
0:43:10 > 0:43:14mind some of it, but not quite the major transformation
0:43:14 > 0:43:16we've done on this one.
0:43:19 > 0:43:22So that's how today's three properties turned out.
0:43:22 > 0:43:24But for more auction action, you know what to do.
0:43:24 > 0:43:28- Join us next time for more Homes Under The Hammer.- Goodbye.- Goodbye.