0:00:02 > 0:00:03Martin and I are both mad about property.
0:00:03 > 0:00:05It doesn't matter how much you know,
0:00:05 > 0:00:07there is always something new to learn.
0:00:07 > 0:00:09Yes, every property is different.
0:00:09 > 0:00:11And of course, let's not forget the people who buy them.
0:00:11 > 0:00:13They're all different, too.
0:00:13 > 0:00:15Lucy, me, you...
0:00:42 > 0:00:45The town of Burton-upon-Trent in Staffordshire
0:00:45 > 0:00:48is probably best-known for its brewing heritage.
0:00:48 > 0:00:52In its heyday, there were around 12 breweries here
0:00:52 > 0:00:56producing, between them, over a quarter
0:00:56 > 0:00:58of the total amount of beer brewed in Britain.
0:01:00 > 0:01:04# And I want to thank you
0:01:04 > 0:01:10# For giving me the best day of my life... #
0:01:10 > 0:01:12Well, a couple of miles from the centre of Burton,
0:01:12 > 0:01:17in the popular suburb of Winshill, is the property I'm here to see.
0:01:17 > 0:01:24£56,000 plus was the guide price for a classic two-bedroomed mid-terrace.
0:01:24 > 0:01:27On a fairly busy road. That's not ideal.
0:01:27 > 0:01:31And how about that for a front step?
0:01:31 > 0:01:32Wow!
0:01:33 > 0:01:35So, I guess the obvious question is,
0:01:35 > 0:01:39will the house be a step up the property ladder?
0:01:39 > 0:01:40Well, maybe.
0:01:40 > 0:01:44In through the door, up the step and into your living room. Nice size.
0:01:44 > 0:01:45It doesn't smell damp,
0:01:45 > 0:01:48it doesn't seem to be in too bad condition.
0:01:48 > 0:01:50Door there, down to the cellar.
0:01:50 > 0:01:52That's a nice, additional bonus.
0:01:52 > 0:01:54And then through into your rear living room area.
0:01:54 > 0:01:56Slight disappointment, the kitchen.
0:01:56 > 0:01:58Originally it would have been here -
0:01:58 > 0:02:00somebody's built some kind of extension at some point,
0:02:00 > 0:02:03it's in the back there.
0:02:03 > 0:02:07So, as starting points go? Not bad.
0:02:07 > 0:02:09# Step it up, step it up, it's all right... #
0:02:11 > 0:02:16Apart from that enormous front step, there's nothing too problematic here.
0:02:16 > 0:02:20For me, a good modernisation is all it would take to sort this out.
0:02:22 > 0:02:24Well, upstairs, and a fairly classic layout.
0:02:24 > 0:02:26A little landing at the top of the stairs.
0:02:26 > 0:02:29And then one bedroom one way and one bedroom the other.
0:02:29 > 0:02:32Both half-decent sized, which is good.
0:02:32 > 0:02:35But there's one thing we haven't found yet.
0:02:35 > 0:02:37And that's the bathroom.
0:02:37 > 0:02:42And I'm afraid, the bad news is that it's accessed through this bedroom.
0:02:43 > 0:02:45If you're looking for the property to appeal
0:02:45 > 0:02:47to as many people as possible,
0:02:47 > 0:02:51I'm afraid a bathroom that only has access through a bedroom is a no-no,
0:02:51 > 0:02:54especially if you're looking to rent the property.
0:02:54 > 0:02:57In this case, though, creating a corridor
0:02:57 > 0:03:00between the landing and the bathroom is an easy fix.
0:03:00 > 0:03:04Just remember to account for the cost in your budget.
0:03:05 > 0:03:09Well, at the back of the property, this little yard area.
0:03:09 > 0:03:13Quite a nice... You've got an outdoor loo. And then the garden.
0:03:13 > 0:03:16However, all is not what it seems.
0:03:16 > 0:03:19Because you think, wow, what an amazing garden!
0:03:19 > 0:03:22However, it's shared with the next-door neighbour.
0:03:22 > 0:03:24Basically, it's split down the middle here, on this path.
0:03:24 > 0:03:28So, I guess you're going to have to get on well with your neighbours
0:03:28 > 0:03:30and hope, like it is in this instance,
0:03:30 > 0:03:34that whoever is your neighbour, looks after their side -
0:03:34 > 0:03:37in this case, it's absolutely beautiful. But it's a nice space.
0:03:37 > 0:03:39And an added bonus,
0:03:39 > 0:03:43it looks like we've even got a friendly pet tortoise.
0:03:43 > 0:03:48# Any time you choose Kick off your shoes
0:03:48 > 0:03:53# Rest your weary eyes and catch up with the news
0:03:53 > 0:03:58# A favourite book will be the perfect company, so relax... #
0:03:58 > 0:04:02Will everyone appreciate it as much as this local resident?
0:04:02 > 0:04:05It's a little rude to give someone's age away,
0:04:05 > 0:04:08but this chap is 52 years old.
0:04:08 > 0:04:11So that makes me an old-age mentioner!
0:04:12 > 0:04:15Sorry. Anyway, a local auctioneer hared along to tell us more.
0:04:15 > 0:04:17I would say, once renovated,
0:04:17 > 0:04:21this property would achieve somewhere in the region of £85,000.
0:04:21 > 0:04:24And if I were looking to offer this property to the rental market,
0:04:24 > 0:04:26then I would imagine a fair rent would be
0:04:26 > 0:04:30somewhere in the region of £475 per calendar month.
0:04:32 > 0:04:35Well, a really nice house in a popular area.
0:04:35 > 0:04:38Yes, a bit of noise from the road out the front,
0:04:38 > 0:04:39but apart from that, a great one to go for.
0:04:39 > 0:04:43Let's see who agreed when it went under the hammer.
0:04:43 > 0:04:46A two-bedroomed terraced house, good potential to it.
0:04:46 > 0:04:50How much shall I say for it today, ladies and gentlemen? 54? Thank you.
0:04:50 > 0:04:53£54,000, I have, on the right-hand side.
0:04:53 > 0:04:5555. 55.
0:04:55 > 0:04:5756. 57.
0:04:57 > 0:04:5858.
0:04:58 > 0:05:0059.
0:05:00 > 0:05:0160,000.
0:05:01 > 0:05:0361.
0:05:03 > 0:05:0462?
0:05:04 > 0:05:0661,000, in front of me.
0:05:06 > 0:05:08I'll take 500, if it'll help you.
0:05:08 > 0:05:09It's in the market. It's going to get sold.
0:05:09 > 0:05:1161,500 somewhere else?
0:05:11 > 0:05:17At £61,000, then. It's going to go for the first time, at 61.
0:05:17 > 0:05:19For the second time, at 61. Third opportunity.
0:05:19 > 0:05:22Anybody? Any higher bid?
0:05:22 > 0:05:23Sold at 61,000.
0:05:23 > 0:05:26The successful bid of £61,000
0:05:26 > 0:05:29came from local pair Sue and her partner Andy.
0:05:29 > 0:05:32Sue already has a property portfolio.
0:05:33 > 0:05:36So, no doubt, she found this terrace
0:05:36 > 0:05:40after scouring through auction catalogue after auction catalogue.
0:05:41 > 0:05:44Well, not exactly.
0:05:45 > 0:05:48- Andy, Sue, great to meet you both. - Nice to meet you.- Nice to meet you.
0:05:48 > 0:05:50- Congratulations. - Thank you very much.- Yeah.
0:05:50 > 0:05:52Tell me why you wanted to buy this place.
0:05:52 > 0:05:56- I live just up the road and I do this, actually, for a living.- Right.
0:05:56 > 0:05:58It started as a hobby.
0:05:58 > 0:06:01But I came to take my granddaughter to school
0:06:01 > 0:06:04and I saw the sign outside, so I thought, "Oh, got to have a look."
0:06:04 > 0:06:06And is it normally buy them and sell them on?
0:06:06 > 0:06:08No, I buy everything and rent it.
0:06:08 > 0:06:12But this is a new portfolio-type thing.
0:06:12 > 0:06:17I'm buying this to renovate to a good standard and sell on.
0:06:17 > 0:06:19# That's what I go to school for... #
0:06:20 > 0:06:23Well, if Sue makes a healthy profit,
0:06:23 > 0:06:25she won't complain about the school run again.
0:06:25 > 0:06:27It goes to show that experienced developers
0:06:27 > 0:06:31are always looking for the next potential opportunity.
0:06:31 > 0:06:33Sue has been doing this for 25 years,
0:06:33 > 0:06:36along with a significant amount of charity work.
0:06:36 > 0:06:38But she was originally a fashion model.
0:06:40 > 0:06:43- Tell me what you're going to do to it, then.- From top to bottom,
0:06:43 > 0:06:46it's going to have to have the roof checked.
0:06:46 > 0:06:48We want lagging in the roof.
0:06:48 > 0:06:51We always start at the top and work our way down.
0:06:51 > 0:06:53Brand-new bathroom.
0:06:53 > 0:06:55Bedrooms all sorted out.
0:06:55 > 0:06:59- But we're putting a passageway in the second bedroom.- Ah...- Yes.
0:06:59 > 0:07:04So, we're just going to put a stud wall, partition it off,
0:07:04 > 0:07:07and the bedroom will still be sized for a double bed.
0:07:07 > 0:07:09Out the back, you've got this quite interesting garden
0:07:09 > 0:07:11that's split down the middle with the neighbour.
0:07:11 > 0:07:14It's lovely. These are the gardens round here,
0:07:14 > 0:07:16- this is what they're like. - It's charming,
0:07:16 > 0:07:18and obviously the gentleman who owns next door
0:07:18 > 0:07:21obviously does a fantastic job of sorting his side.
0:07:21 > 0:07:24Yes. Yes. And he loves doing it.
0:07:24 > 0:07:26So, when I bought at the auction,
0:07:26 > 0:07:30I came and said that I was coming to renovate it
0:07:30 > 0:07:32and thanked him for doing the garden.
0:07:32 > 0:07:34And he's done it since, so...
0:07:34 > 0:07:36Has he? Oh, excellent. That's fantastic.
0:07:36 > 0:07:38And he's got a 52-year-old tortoise.
0:07:38 > 0:07:41- Thomas.- Tommy.- Thomas the tortoise.
0:07:41 > 0:07:44- So he'll be keeping an eye on things.- Yes.- Er, no doubt.
0:07:46 > 0:07:48The house IS an investment.
0:07:48 > 0:07:50But Sue and Andy sound quite fond of it
0:07:50 > 0:07:54and its helpful and charming neighbours.
0:07:54 > 0:07:55If the lovely garden, a smashing neighbour
0:07:55 > 0:07:57and reconfigured bathroom don't add value,
0:07:57 > 0:08:01I think a guard tortoise just might.
0:08:01 > 0:08:03So what's the budget for all the work?
0:08:03 > 0:08:06- I think about £10,000.- Right.
0:08:06 > 0:08:10It usually works out about that with these type of terraced houses.
0:08:10 > 0:08:13I've got a good team that have worked with me a long time -
0:08:13 > 0:08:17decorators, plumbers, electricians.
0:08:17 > 0:08:20I don't touch things that are either going to blow me up or hurt!
0:08:20 > 0:08:22Fair enough.
0:08:22 > 0:08:25I'm glad to hear that Sue is clearly a switched-on developer.
0:08:25 > 0:08:29You can't do better than have a reliable team you know and trust,
0:08:29 > 0:08:32which means this should be pretty straightforward in her two-month timescale.
0:08:33 > 0:08:36So what do you think the most important lesson you've learned
0:08:36 > 0:08:38in your 25 years of doing this is?
0:08:38 > 0:08:41- Always read your legal pack.- Yes.
0:08:42 > 0:08:44I've learned that from Homes Under The Hammer.
0:08:44 > 0:08:47Oh, good girl! Yes. Absolutely.
0:08:47 > 0:08:49Well, listen, congratulations. Good luck with it.
0:08:49 > 0:08:52- Thank you very much.- We look forward to seeing how you get on.
0:08:54 > 0:08:57Well, this project should be water off a duck's back
0:08:57 > 0:09:00for property old-timers Sue and Andy.
0:09:00 > 0:09:03But there's only one person I'm interested to find out
0:09:03 > 0:09:07what THEY think of the renovation, and that's Tommy the tortoise.
0:09:07 > 0:09:10You can find out how it all goes later in the show.
0:09:14 > 0:09:16This is Deal, in Kent.
0:09:16 > 0:09:19Once a busy shipping port, it's now a quiet seaside town
0:09:19 > 0:09:22with a glorious stretch of beach and some lovely views.
0:09:26 > 0:09:30A mile from the beach is the lot I'm here to see.
0:09:30 > 0:09:35And it's this - a former St John's Ambulance headquarters,
0:09:35 > 0:09:37eight garages and a store.
0:09:37 > 0:09:41Now, I'm aware the main building hasn't been used for several years
0:09:41 > 0:09:43and, well, the whole site's seen better days.
0:09:43 > 0:09:45So what are we looking at?
0:09:45 > 0:09:47A building plot, of course,
0:09:47 > 0:09:51which had a guide price of 100,000 to 105,000.
0:09:57 > 0:10:00Let's see what we've got.
0:10:00 > 0:10:04Basically, we have an L-shaped site with two road frontages.
0:10:04 > 0:10:06One on the main street and one at the side.
0:10:06 > 0:10:08Fabulous.
0:10:09 > 0:10:11There are eight lock-up garages,
0:10:11 > 0:10:14which haven't done much locking up lately.
0:10:14 > 0:10:16And a large storeroom, with no door.
0:10:17 > 0:10:23And this tired, old hall, which used to be home to St John's Ambulance.
0:10:23 > 0:10:25# Doctor, doctor
0:10:25 > 0:10:29# Give me the news I got a bad case of loving you... #
0:10:33 > 0:10:35So, what have we got?
0:10:35 > 0:10:37Well, the planning permission
0:10:37 > 0:10:40is for a row of three three-bedroom terraces
0:10:40 > 0:10:43and one detached two-bedroom house.
0:10:43 > 0:10:45Now, the reason you have this slightly odd arrangement
0:10:45 > 0:10:48is the shape of the plot, which is a dogleg.
0:10:48 > 0:10:50So the terraces go along that side
0:10:50 > 0:10:53and the detached sneaks in along the back here.
0:10:53 > 0:10:56Now, the designs themselves are actually very nice.
0:10:56 > 0:10:58I love the layout downstairs.
0:10:58 > 0:11:00You've got a nice, big lounge,
0:11:00 > 0:11:02then a kitchen at the back with a dining area
0:11:02 > 0:11:03and I really like that.
0:11:03 > 0:11:06You've got a cupboard here, a cupboard there.
0:11:06 > 0:11:08Nice and practical, actually.
0:11:08 > 0:11:11Then upstairs, three good-sized bedrooms, a family bathroom
0:11:11 > 0:11:13and an en suite
0:11:13 > 0:11:15AND a walk-in wardrobe storage area.
0:11:15 > 0:11:16Love it!
0:11:16 > 0:11:21Whoever designed these, really thought about how families live.
0:11:21 > 0:11:22I'm impressed.
0:11:24 > 0:11:26# Congratulations
0:11:26 > 0:11:27# I'm impressed
0:11:27 > 0:11:30# All you had to do was beat the best... #
0:11:30 > 0:11:35The busy road to one side of the site could put potential buyers off,
0:11:35 > 0:11:37as could the small gardens in the plans.
0:11:37 > 0:11:39However, with the planning permission in place,
0:11:39 > 0:11:43I can't see anyone wanting to return the hall to its former glory.
0:11:43 > 0:11:47Whatever happens, it's likely to become residential.
0:11:47 > 0:11:51However, as with any development, it's all about the maths.
0:11:51 > 0:11:55Is there good potential profit if these plans were to be carried out?
0:11:55 > 0:11:58We've asked a local estate agent along,
0:11:58 > 0:12:01to give us his opinions on the plans.
0:12:01 > 0:12:03I think the plans that are approved are good for this site.
0:12:03 > 0:12:07They're good, interesting houses and will be appropriate for the location.
0:12:07 > 0:12:09The only other use for this site
0:12:09 > 0:12:12is some other form of residential, maybe flats,
0:12:12 > 0:12:15that would be best in this market.
0:12:15 > 0:12:17If you want to let, I think I'd put flats.
0:12:17 > 0:12:20If you want to sell, I think I would build houses.
0:12:20 > 0:12:22Now, that's intriguing.
0:12:22 > 0:12:26However, attempting to change the planning permission would cost time and money.
0:12:26 > 0:12:29So, how do the options compare financially?
0:12:29 > 0:12:31For the houses that are proposed here currently,
0:12:31 > 0:12:36they are going to have a value of about £185,000 to £190,000.
0:12:36 > 0:12:39Based on those top valuations,
0:12:39 > 0:12:44four houses here could have a total value of £760,000.
0:12:44 > 0:12:45Wow!
0:12:45 > 0:12:47If they were flats, they would be less -
0:12:47 > 0:12:51a one-bedroom flat would be about 100 to 110.
0:12:51 > 0:12:55And a two-bedroom flat would be about £110,000 to £120,000.
0:12:55 > 0:12:57And what would a flat here rent for?
0:12:57 > 0:12:59If flats were built here,
0:12:59 > 0:13:03they would let for £450 per calendar month for a one-bed
0:13:03 > 0:13:08and £500 to £550 per calendar month for a two-bed.
0:13:08 > 0:13:12This is a nice plot in a decent enough residential area
0:13:12 > 0:13:16with money to be made, if bought for the right price.
0:13:16 > 0:13:19Let's see what that was at the auction.
0:13:23 > 0:13:27It's the former St John's premises and garages,
0:13:27 > 0:13:29and it's got the planning for the redevelopment
0:13:29 > 0:13:32for the terrace of three and the detached house.
0:13:32 > 0:13:34So can I see £100,000 for it?
0:13:34 > 0:13:36£100,000. Where's my builders?
0:13:36 > 0:13:38£100,000 can I say?
0:13:38 > 0:13:40Give me 90, then. Start me at £90,000.
0:13:40 > 0:13:4390, I'm bid. 95 bid, I have.
0:13:43 > 0:13:45£100,000, I'm bid.
0:13:45 > 0:13:47105, now, if you like. At £100,000.
0:13:47 > 0:13:50105, right at the back, I've got.
0:13:50 > 0:13:51108.
0:13:51 > 0:13:53110, standing at the back.
0:13:53 > 0:13:54110, can I see?
0:13:54 > 0:13:56110.
0:13:56 > 0:13:57And 12.
0:13:57 > 0:13:59And 14. And 14.
0:13:59 > 0:14:00114.
0:14:00 > 0:14:02And 16.
0:14:02 > 0:14:04With some cagey bidding going on, we leave it there
0:14:04 > 0:14:08and return at £142,000.
0:14:09 > 0:14:13142. And four. And six.
0:14:13 > 0:14:16146. And eight. And 50.
0:14:16 > 0:14:1850. And two. And four.
0:14:18 > 0:14:20And six. And eight.
0:14:20 > 0:14:21158?
0:14:21 > 0:14:24At £156,000, I've got.
0:14:24 > 0:14:26158, anywhere else?
0:14:26 > 0:14:29If not, at £156,000, for the first time.
0:14:30 > 0:14:32156, for the second time.
0:14:32 > 0:14:35Third and final time, at £156,000.
0:14:35 > 0:14:38Well done, madam, you've stuck with it and you got it.
0:14:40 > 0:14:43Sticking with the bidding was Tracey and her builder Paul.
0:14:44 > 0:14:48That successful bid of £156,000
0:14:48 > 0:14:52smashed the guide price by over 50 grand.
0:14:52 > 0:14:56Tracey has been on the show before with her business partner Martin.
0:14:56 > 0:14:59Their property business currently has 21 properties,
0:14:59 > 0:15:01which they rent out.
0:15:02 > 0:15:06Tracey, we meet again. I think it was 2008 the last time we met.
0:15:06 > 0:15:10- That's right, in Dover.- So have you been property developing ever since?
0:15:10 > 0:15:13Back in that time, we'd done a bit of renovation work.
0:15:13 > 0:15:15But, since then, we've been doing new-build properties.
0:15:15 > 0:15:17Building flats around Dover.
0:15:17 > 0:15:18The thing that took my eye about this plot
0:15:18 > 0:15:20is the planning that comes with it.
0:15:20 > 0:15:22You've got a really nice house at the back.
0:15:22 > 0:15:23A nice, big detached house.
0:15:23 > 0:15:27And three nice houses that sit in the front.
0:15:27 > 0:15:28Is that something, or was that something,
0:15:28 > 0:15:31that particularly appealed to you with this?
0:15:31 > 0:15:33We like the idea that it's got planning on it.
0:15:33 > 0:15:37But it wouldn't appeal to us to have that particular planning on it
0:15:37 > 0:15:39because we tend to specialise in building flats,
0:15:39 > 0:15:41because we don't sell our properties on,
0:15:41 > 0:15:43we deal with the rental market.
0:15:43 > 0:15:45And we find the rental return on flats
0:15:45 > 0:15:48is much better than it is on houses.
0:15:48 > 0:15:51So, you're not going to go with the plans that come with this site?
0:15:51 > 0:15:54No. We've already spoken to an architect
0:15:54 > 0:15:57and he's drafted plans with the potential of nine flats on the site.
0:15:57 > 0:15:59So, have you spoken to the planners?
0:15:59 > 0:16:02Have they, like, given you any indication
0:16:02 > 0:16:04whether or not they'll pass something like this?
0:16:04 > 0:16:08The architects had an initial chat with the person from the council
0:16:08 > 0:16:12and it's looking very hopeful that they will agree the new plans.
0:16:12 > 0:16:15And how much would it cost to build
0:16:15 > 0:16:17what you're looking to do on this site?
0:16:17 > 0:16:22Generally speaking, we estimate about 70,000 per unit.
0:16:22 > 0:16:26- OK.- So, we've got two separate units, phase one and phase two.
0:16:26 > 0:16:32Phase one, of the five units, you'd be looking at about 350,000.
0:16:32 > 0:16:36And the second of the four units, that's about 280,000.
0:16:36 > 0:16:37Wow!
0:16:38 > 0:16:41Tracey certainly has a business head on her,
0:16:41 > 0:16:42but this project isn't without
0:16:42 > 0:16:45its little sentimental sting in the tail.
0:16:46 > 0:16:49I grew up in the north end of Deal.
0:16:49 > 0:16:51So I was fairly familiar with this end of Deal
0:16:51 > 0:16:54and it was only after I'd bought this place at the auction
0:16:54 > 0:16:55and I was telling my family about it
0:16:55 > 0:16:58that I found out that my parents had their wedding reception here
0:16:58 > 0:17:00back in 1968.
0:17:00 > 0:17:03That is amazing to think that, once upon a time
0:17:03 > 0:17:06they sat in here having a wedding reception
0:17:06 > 0:17:08and now you're going to knock it down! How do they feel about that?
0:17:08 > 0:17:10I did ask if they wanted to come
0:17:10 > 0:17:13and have one final look down, for memory, old time's sake,
0:17:13 > 0:17:16but they said it was pretty grotty back in 1968
0:17:16 > 0:17:18and it wouldn't have improved since then.
0:17:18 > 0:17:20And now here you are, you're about to improve it completely.
0:17:20 > 0:17:23I think the best thing we can do with this is knock it down.
0:17:23 > 0:17:26How long do think it's going to be before this development is finished?
0:17:26 > 0:17:29I would think it would be about 20 weeks until we got the plans through
0:17:29 > 0:17:31and we're in a position to proceed.
0:17:31 > 0:17:36And then, phase one I would think is about six months, 26 weeks,
0:17:36 > 0:17:39and similar or less for phase two.
0:17:39 > 0:17:42- Well, good luck.- Thank you. - It's going to be really exciting
0:17:42 > 0:17:44coming back and seeing this not being here
0:17:44 > 0:17:46and a lovely block of flats in its place.
0:17:46 > 0:17:48Good luck with the project,
0:17:48 > 0:17:51- and hopefully, it won't be so long the next time I see you.- No.
0:17:51 > 0:17:53Thanks very much. Thank you.
0:17:53 > 0:17:57So, another block of flats for Tracey.
0:17:57 > 0:17:58Seems to be a winning formula.
0:17:58 > 0:18:02It's such a shame these nice houses won't see the light of day,
0:18:02 > 0:18:05but I do hope they get the planning permission they want.
0:18:05 > 0:18:07Certainly money in it.
0:18:07 > 0:18:10You can find out what happens later in the show.
0:18:11 > 0:18:15Still to come... In Maryport, Cumbria, I think I've spotted the problem.
0:18:16 > 0:18:18Urgh!
0:18:18 > 0:18:20That's not good.
0:18:23 > 0:18:28And over in Deal, Kent, best-laid plans have stalled in the erm...
0:18:28 > 0:18:30planning office.
0:18:37 > 0:18:42Back now to the town of Burton-upon-Trent in Staffordshire,
0:18:42 > 0:18:46where I earlier looked around this two-bedroom mid-terrace property
0:18:46 > 0:18:48that had a guide price of £56,000.
0:18:52 > 0:18:55A solid, traditional property in need of updating.
0:18:55 > 0:18:56And it had one inconvenient element.
0:18:58 > 0:18:59And that's the bathroom.
0:18:59 > 0:19:04And I'm afraid, the bad news is that it's accessed through this bedroom.
0:19:04 > 0:19:06So not ideal at all.
0:19:07 > 0:19:10It certainly was a problem that needed fixing,
0:19:10 > 0:19:13and the person who was feeling flush enough to do it on auction day
0:19:13 > 0:19:17was Sue and her partner Andy.
0:19:20 > 0:19:25Five months later, we returned to see just how things had come along.
0:19:47 > 0:19:50The downstairs has been transformed, from dull and dated
0:19:50 > 0:19:53to modern and aspirational.
0:19:53 > 0:19:56The feature fireplaces in the two reception rooms
0:19:56 > 0:19:57give a great focal point.
0:20:00 > 0:20:04And the brand-new kitchen is unrecognisable from before.
0:20:04 > 0:20:09Wow, this is a fantastic job and a really professional finish.
0:20:09 > 0:20:12I can't wait to see what's been done upstairs.
0:20:22 > 0:20:24A lovely new bathroom suite
0:20:24 > 0:20:27sits at the end of a newly-constructed landing,
0:20:27 > 0:20:30made with space taken from the second bedroom,
0:20:30 > 0:20:32as Sue explains...
0:20:33 > 0:20:38This is the stud wall I built. I actually did build the wall.
0:20:38 > 0:20:40Some of the lads gave me a hand with the plasterboard,
0:20:40 > 0:20:41because that's very heavy.
0:20:41 > 0:20:44But I did all the framework.
0:20:44 > 0:20:46I think it's made it ideal.
0:20:46 > 0:20:49You couldn't walk through a bedroom to get into a bathroom.
0:20:49 > 0:20:52The bedroom's still a really good size
0:20:52 > 0:20:56and it's just made the whole upstairs flow through. I love it.
0:20:56 > 0:21:00This is a much more practical layout that suits modern living,
0:21:00 > 0:21:02as does the bright and tasteful decor.
0:21:02 > 0:21:05I like the greys - still fairly neutral,
0:21:05 > 0:21:08but getting away from magnolia makes a change.
0:21:08 > 0:21:10But, how has it been for Sue and Andy?
0:21:10 > 0:21:13Oh, and of course, pet dog Alfie.
0:21:13 > 0:21:16Well, we started at the top of the house.
0:21:16 > 0:21:20Bathroom totally stripped, a new suite put in.
0:21:20 > 0:21:22The whole house was rewired.
0:21:22 > 0:21:24All plaster off the walls.
0:21:24 > 0:21:27Went into the kitchen, removed the kitchen.
0:21:27 > 0:21:29Redid the plastering there.
0:21:29 > 0:21:32And very nice job.
0:21:32 > 0:21:36Good kitchen fitters, so...
0:21:36 > 0:21:38I'm pleased with the whole thing.
0:21:38 > 0:21:40It all came together.
0:21:40 > 0:21:42It certainly has.
0:21:42 > 0:21:46Not only have they done the interior but they also tidied up the back
0:21:46 > 0:21:48including their neighbour Des's side,
0:21:48 > 0:21:52who has very kindly continued to look after the garden,
0:21:52 > 0:21:57along with the now hibernating Thomas the tortoise.
0:21:57 > 0:22:00It hasn't all gone to plan, though - as Sue and Andy explain...
0:22:01 > 0:22:05All the electrics were the original electrics in the property when it was built, we think.
0:22:05 > 0:22:08So, the whole place had to be stripped.
0:22:08 > 0:22:11So then it meant all the plaster...
0:22:11 > 0:22:16and we didn't cut corners, it's been done to a high standard,
0:22:16 > 0:22:19plus we've got the internet cables all through.
0:22:19 > 0:22:24Every room has got a TV plug, TV aerial
0:22:24 > 0:22:29and erm...all the DVD, anything you want
0:22:29 > 0:22:32regarding electrics is all behind the fireplace.
0:22:32 > 0:22:36Wow! That's impressive. OK, I like a gadget or two -
0:22:36 > 0:22:39but Sue has certainly brought this property right up to date.
0:22:39 > 0:22:43And she's only gone over her £10,000 budget by £600 -
0:22:43 > 0:22:48thanks mainly to Andy sourcing the best deals on the internet.
0:22:48 > 0:22:52What's more, their timeframe of two months has been stuck to,
0:22:52 > 0:22:54albeit somewhat delayed by holidays
0:22:54 > 0:22:56and problems with other properties they own.
0:23:01 > 0:23:04So, with Sue and Andy keen to sell,
0:23:04 > 0:23:06it will be interesting to see what two local experts
0:23:06 > 0:23:08think of the property.
0:23:08 > 0:23:12With a total outlay here of just under £72,000,
0:23:12 > 0:23:14what kind of figures are we talking?
0:23:15 > 0:23:18If this property were placed on the market for sale,
0:23:18 > 0:23:21I would expect it to achieve £85,000.
0:23:21 > 0:23:24I think, if the clients decided to market this property for sale,
0:23:24 > 0:23:28I would expect them to achieve at least £89,000.
0:23:28 > 0:23:30Well, erm...
0:23:30 > 0:23:33I think they're fair.
0:23:33 > 0:23:37But, to this standard, it wants to be at the top end, the 89.
0:23:37 > 0:23:40I valued it at 89,950,
0:23:40 > 0:23:44and I've actually sold the property for 89,000.
0:23:44 > 0:23:47Crikey! You kept that quiet, Sue.
0:23:47 > 0:23:50Selling it for £89,000 has left Sue
0:23:50 > 0:23:53with a pre-tax profit of just over 17,000,
0:23:53 > 0:23:56making this project a big success.
0:23:56 > 0:23:59And she isn't resting on her laurels one little bit.
0:24:02 > 0:24:05I keep saying I'm not going to buy any more, but it's like a drug,
0:24:05 > 0:24:08you do. You can't help yourself.
0:24:10 > 0:24:12Today, I'm in Maryport,
0:24:12 > 0:24:17the southernmost coastal town on the Solway Firth in Cumbria.
0:24:17 > 0:24:20Now, for many years, this place was called Ellenfoot,
0:24:20 > 0:24:25until a developer in Georgian times by the name of Humphrey Senhouse
0:24:25 > 0:24:30decided to redevelop it and name it in honour of his wife,
0:24:30 > 0:24:31Gladys.
0:24:32 > 0:24:34I'm kidding.
0:24:34 > 0:24:35Mary.
0:24:37 > 0:24:42# And the wind, it cries Mary... #
0:24:46 > 0:24:50Well, a few minutes' walk from the town centre and the harbour
0:24:50 > 0:24:52is the property I'm here to see.
0:24:52 > 0:24:53Three-bedroomed terrace,
0:24:53 > 0:24:56guide price £35,000-plus...
0:25:00 > 0:25:02So, not a lot of money -
0:25:02 > 0:25:06but does it have an interior that reflects that price?
0:25:06 > 0:25:08Well, nice, high ceilings as you walk through the door.
0:25:08 > 0:25:12Bit of an odd layout. Just one, big room down here
0:25:12 > 0:25:15which obviously makes this your living room and sort of kitchen area.
0:25:15 > 0:25:20Work to be done but I do quite like the layout here
0:25:20 > 0:25:23and er... Yeah, onwards and upwards.
0:25:26 > 0:25:28Urgh!
0:25:28 > 0:25:29That's not good.
0:25:34 > 0:25:36Neither's this.
0:25:36 > 0:25:38Sort of on this little landing halfway up the stairs,
0:25:38 > 0:25:40you've got this door
0:25:40 > 0:25:44which leads out into this... well, covered passageway,
0:25:44 > 0:25:46which leads to another front door.
0:25:46 > 0:25:50This house is a listed building, so you have to think about that
0:25:50 > 0:25:53when it comes to deciding what you want to do with it.
0:25:53 > 0:25:58It's described in the catalogue as a three-storey house.
0:25:58 > 0:26:00But with this half-landing
0:26:00 > 0:26:03and this extra door that leads to it, it certainly is quirky.
0:26:05 > 0:26:08Let's hope it's not quite as complicated up here.
0:26:08 > 0:26:11Erm, what have we got? Bathroom there.
0:26:11 > 0:26:15Stairs up to the second floor where the second bedroom is
0:26:15 > 0:26:18and then through into your first bedroom here.
0:26:18 > 0:26:22And, you know, what's the opposite of open plan?
0:26:22 > 0:26:23Because downstairs is open plan
0:26:23 > 0:26:26and up here is absolutely the opposite,
0:26:26 > 0:26:31it's very cramped, it's all corridors and stairs and it doesn't work.
0:26:31 > 0:26:35And glancing around, there's not an easy solution.
0:26:35 > 0:26:37So, some work to be done inside here.
0:26:37 > 0:26:42Going from the first floor with its bathroom and front bedroom,
0:26:42 > 0:26:46ever upwards to the second floor, you find two further bedrooms,
0:26:46 > 0:26:47each of reasonable size.
0:26:50 > 0:26:51We asked a local property expert
0:26:51 > 0:26:54for their opinion on this perplexing property.
0:26:54 > 0:26:59What could this house rent for if done up to a good standard?
0:26:59 > 0:27:02We could achieve somewhere in the region of £350 per calendar month.
0:27:02 > 0:27:05Given a guide price of 35,000,
0:27:05 > 0:27:06after refurbishment,
0:27:06 > 0:27:10what sort of sale price would you advise on the open market?
0:27:10 > 0:27:12If the property was renovated,
0:27:12 > 0:27:14depending on the standard of the finish,
0:27:14 > 0:27:18it could achieve anywhere between £75,000 and £80,000.
0:27:19 > 0:27:22Well, a nice enough property, but a lot of work to be done on this one
0:27:22 > 0:27:25so not a weekend refurbishment.
0:27:25 > 0:27:27Let's see who decided to take on the challenge
0:27:27 > 0:27:29when it went under the hammer.
0:27:29 > 0:27:31Three-storey four-bedroom terraced house
0:27:31 > 0:27:34situated in a popular area of the town.
0:27:34 > 0:27:36The property is a listed building.
0:27:36 > 0:27:3735? 30?
0:27:37 > 0:27:38I need a bid.
0:27:38 > 0:27:40I can't sell it without one.
0:27:40 > 0:27:42At 30,000.
0:27:42 > 0:27:4430, I'm in.
0:27:44 > 0:27:45At 30,000.
0:27:45 > 0:27:47Despite a packed auction house,
0:27:47 > 0:27:49it looked like the guide price was unobtainable.
0:27:49 > 0:27:52But then the bids started to move a little.
0:27:52 > 0:27:54At £30,000, then.
0:27:54 > 0:27:5631. 32.
0:27:56 > 0:27:5733. 34.
0:27:57 > 0:27:5935. No?
0:27:59 > 0:28:01With you at 34.
0:28:01 > 0:28:03Half. 35.
0:28:03 > 0:28:0635. Yeah, I've got half here. At 35, with you.
0:28:06 > 0:28:08Half? No.
0:28:08 > 0:28:09Back with you, at 35.
0:28:09 > 0:28:13At £35,000 on my left seated.
0:28:13 > 0:28:15First time. Second time.
0:28:15 > 0:28:17Third time at £35,000, then.
0:28:17 > 0:28:19- GAVEL BANGS - Well done, sir.
0:28:20 > 0:28:24The successful bid of £35,000 was made by Dave.
0:28:24 > 0:28:27I met up with him and his business partner Kevin,
0:28:27 > 0:28:29leading the way here,
0:28:29 > 0:28:30back at the property.
0:28:32 > 0:28:35- Dave, Kevin, good to meet you both. Congratulations.- Thank you.
0:28:35 > 0:28:37Tell me why you wanted to buy this property.
0:28:37 > 0:28:40- God knows! - That's a good start. Yeah.
0:28:42 > 0:28:46Well, we're new into the renovation part of our careers now,
0:28:46 > 0:28:50we've done the house builds, we've done all that to do with that.
0:28:50 > 0:28:54We now want to go forward and buy properties to do up and to rent.
0:28:54 > 0:28:57Right, OK. And what's the relationship between you two?
0:28:57 > 0:28:59Kev is the builder of the business.
0:28:59 > 0:29:02So does, in effect, Kevin work for you?
0:29:02 > 0:29:06- Kevin actually works for my drainage business, yes.- Ah.
0:29:06 > 0:29:09So why this particular house, then?
0:29:09 > 0:29:13We arrived at our first auction a month ago, just gone,
0:29:13 > 0:29:17and the house we wanted was number five on the list.
0:29:17 > 0:29:22And the money that it went for was absolutely above our budget.
0:29:22 > 0:29:23Right.
0:29:23 > 0:29:27We have a certain budget and the next one along was this one,
0:29:27 > 0:29:29which was within our budget.
0:29:29 > 0:29:31- Right, so had you seen it beforehand?- No.- No.
0:29:31 > 0:29:33Oh...!
0:29:33 > 0:29:36- Had you read the legal pack?- No.
0:29:36 > 0:29:37Oh...!
0:29:37 > 0:29:40So you hadn't seen it, hadn't read the legal pack.
0:29:40 > 0:29:43- That's, kind of, a little bit on the...- Back to front?
0:29:43 > 0:29:46- Well, kind of. Bit dangerous. - Absolutely. But confidence, you see?
0:29:46 > 0:29:47Foolhardy, a bit, sort of?
0:29:47 > 0:29:49- Nothing to worry about, is there?- Well, possibly.
0:29:49 > 0:29:52- You don't know until you've read the legal pack.- Yeah.
0:29:52 > 0:29:54- No, it's all been dealt with. - Oh, now - after you've bought it.
0:29:54 > 0:29:59Oh, yes. Well, I'm finalising now, so there's nothing scary amongst it.
0:29:59 > 0:30:00Could have been, though.
0:30:00 > 0:30:02Well... Confidence.
0:30:02 > 0:30:04Next time, we WILL read the legal pack.
0:30:04 > 0:30:09But this was our first and we're not upset about the purchase at all.
0:30:09 > 0:30:10So, what are the plans for it, then?
0:30:10 > 0:30:14- What are you going to do to it?- Top to bottom,
0:30:14 > 0:30:16- take all the chimney breasts out, top to bottom.- Oh, are you?- Yeah.
0:30:16 > 0:30:18Take everything apart.
0:30:18 > 0:30:20And the walls, we'll re-skim where necessary.
0:30:20 > 0:30:22New floorboards. New heating system.
0:30:22 > 0:30:24Rewire.
0:30:24 > 0:30:27It's a kind of interesting layout, as well, isn't it?
0:30:27 > 0:30:29Sort of higgledy-piggledy, all over the place.
0:30:29 > 0:30:31What are you going to do to sort of change that?
0:30:31 > 0:30:35Well, the worst part for us, we think, is the kitchen area here
0:30:35 > 0:30:37because, you know,
0:30:37 > 0:30:39with the stairs coming up from behind that wall there
0:30:39 > 0:30:42it's going to take a little bit of erm...
0:30:42 > 0:30:43imagination.
0:30:43 > 0:30:46And there's no back yard to this property here.
0:30:46 > 0:30:50But the passage is there, which is a back yard.
0:30:50 > 0:30:54So we can do things with that to make light work of the kitchen.
0:30:54 > 0:30:57- Right.- Put white goods in there, that sort of thing.- Right.
0:30:57 > 0:31:01- So is the idea, then, to do it up and sell it on or to rent it out? - Rent out.- Rent out.
0:31:01 > 0:31:03So, what's the budget?
0:31:03 > 0:31:06We have a budget of up to 12 grand.
0:31:06 > 0:31:09With the purchase price on top of that
0:31:09 > 0:31:13we think we can turn this round into a nice return,
0:31:13 > 0:31:15- market appraisal-wise.- Right.
0:31:15 > 0:31:19What sort of rents do you think you might get?
0:31:19 > 0:31:23In the area, they're going for roughly £450 to £500.
0:31:23 > 0:31:25- Yeah, in this area.- Right.
0:31:25 > 0:31:27It does worry me that Dave and Kevin
0:31:27 > 0:31:30have gone into this without having a chance to weigh it all up.
0:31:30 > 0:31:32Their estimate of the rental
0:31:32 > 0:31:34is much higher than the agents who came to see it.
0:31:34 > 0:31:36Well, it remains to be seen who was right.
0:31:40 > 0:31:42They've set themselves a 12-week timescale,
0:31:42 > 0:31:45and Dave's wife Linda will be looking after the finances,
0:31:45 > 0:31:48so hopefully she'll make those figures add up.
0:31:48 > 0:31:52- And were you happy with what you paid for this one? - Yeah. Very much so, yeah.
0:31:52 > 0:31:56- Within the budget and all?- Although I bought it blind.- Yeah, I know.
0:31:56 > 0:31:57Tut-tut.
0:31:57 > 0:32:00- Well, listen, congratulations. - Thank you.- Good luck.
0:32:00 > 0:32:02- Yeah, thank you.- And look forward to seeing how you get on.
0:32:02 > 0:32:05- Nice one. Thank you. - Nice to meet you both.
0:32:06 > 0:32:10So, a new joint venture for David and Kevin.
0:32:10 > 0:32:13But they broke all the rules buying this,
0:32:13 > 0:32:14their first auction property -
0:32:14 > 0:32:16not reading the legal pack, tut-tut-tut,
0:32:16 > 0:32:20not visiting the property beforehand... More tuts.
0:32:20 > 0:32:21HE BREATHES DEEPLY IN AND OUT
0:32:21 > 0:32:23Hopefully...
0:32:24 > 0:32:30..the renovation will go a bit more, how shall we say, to plan. Yes.
0:32:30 > 0:32:32You can find out how they get on later in the show.
0:32:39 > 0:32:42It's time to go back to Deal in Kent,
0:32:42 > 0:32:44where part-time property developer Tracey
0:32:44 > 0:32:46and her business partner Martin
0:32:46 > 0:32:49paid 156,000 for this L-shaped plot of land,
0:32:49 > 0:32:53which came with planning permission for four houses.
0:32:56 > 0:33:00Since Tracey and Martin only build and rent out flats,
0:33:00 > 0:33:03the existing plans became the first casualty
0:33:03 > 0:33:07of this former St John's Ambulance headquarters development.
0:33:07 > 0:33:09We've already spoken to an architect
0:33:09 > 0:33:14and he's drafted plans with the potential of nine flats on the site.
0:33:14 > 0:33:19Tracey and Martin first submitted their plans in November 2013.
0:33:19 > 0:33:23And one year later, it's not been such a mad dash after all.
0:33:24 > 0:33:26MUSIC: THEME FROM STEPTOE AND SON
0:33:27 > 0:33:30We met up with them back at the site
0:33:30 > 0:33:33to find out how far their plans had progressed.
0:33:34 > 0:33:37Well, the original purchase was in the summer of last year,
0:33:37 > 0:33:40with completion a month later, July.
0:33:40 > 0:33:42After that, we instructed an architect
0:33:42 > 0:33:46and he had meetings with the local planning authority.
0:33:46 > 0:33:49We moved on from there with him preparing plans
0:33:49 > 0:33:51and submitting them in December.
0:33:51 > 0:33:54We understood that process was going to be about six weeks.
0:33:54 > 0:33:58So we hoped to have planning by the end of January of 2014.
0:33:59 > 0:34:03But it wasn't, in fact, till October 2014
0:34:03 > 0:34:08that planning was finally granted to us.
0:34:10 > 0:34:14Tracey and Martin had originally planned for nine flats on the site.
0:34:14 > 0:34:18But this was increased by one at the suggestion of their architect.
0:34:18 > 0:34:20Back at the office,
0:34:20 > 0:34:23Tracey took us through the new plans in more detail.
0:34:24 > 0:34:29# Everybody's gotta have plans
0:34:29 > 0:34:33# She said Everybody's gotta have plans... #
0:34:33 > 0:34:35So looking at the plans now,
0:34:35 > 0:34:39we've got the driveway through the front of the property,
0:34:39 > 0:34:42under the archway, to the rear of the property.
0:34:42 > 0:34:45On the ground floor, we've got three two-bedroom flats.
0:34:45 > 0:34:48When we move up to the first floor,
0:34:48 > 0:34:52we've got three two-bedroom flats and a one-bedroomed flat.
0:34:52 > 0:34:56And moving to the second floor, which is effectively the loft area,
0:34:56 > 0:34:59there's a large three-bedroom flat
0:34:59 > 0:35:03with one very large bedroom with an en suite
0:35:03 > 0:35:06and two separate double bedrooms with a shared bathroom.
0:35:06 > 0:35:12All of the property has got lounge-diners as an open space,
0:35:12 > 0:35:14and separately
0:35:14 > 0:35:17there's a stand-alone two-floor two-bedroom unit,
0:35:17 > 0:35:20which has got separate parking.
0:35:22 > 0:35:24It all looks pretty impressive.
0:35:24 > 0:35:29But their timescale for completion has, obviously, taken a hit.
0:35:29 > 0:35:34Has this delay had an impact on their budget of 630,000?
0:35:36 > 0:35:41Fortunately in the last year we've been in a rising market,
0:35:41 > 0:35:44so the properties will be worth more when they're actually built.
0:35:46 > 0:35:48Tracey and Martin know this business,
0:35:48 > 0:35:52and more importantly, this area, like the back of their hands.
0:35:54 > 0:35:58Seems like a good point to bring in some impartial opinion
0:35:58 > 0:36:00from two local estate agents.
0:36:01 > 0:36:04Firstly, what price could these flats achieve
0:36:04 > 0:36:07on the current property market?
0:36:07 > 0:36:12Sales values here are going to be
0:36:12 > 0:36:14between 100,000 and 135,000
0:36:14 > 0:36:16in the range of one bedroom through to three bedrooms,
0:36:16 > 0:36:20with probably the two-beds coming in at about £120,000.
0:36:20 > 0:36:25I would suggest that the one-beds would be marketed around 100,000,
0:36:25 > 0:36:30the two-beds around the sort of 120,000, 125,000 price banding
0:36:30 > 0:36:35and then the three, around the sort of 135,000, 140,000 level,
0:36:35 > 0:36:39depending on spec and how it's finished.
0:36:39 > 0:36:41Taking those top-end prices,
0:36:41 > 0:36:46the grand total comes to £1.24 million,
0:36:46 > 0:36:50minus the purchase price of 156,000,
0:36:50 > 0:36:55with an estimated spend of £700,000 including the extra flat.
0:36:55 > 0:36:57That would leave Tracey and Martin
0:36:57 > 0:37:03with a healthy profit of 384,000 before taxes and fees.
0:37:04 > 0:37:06Fantastic. Better than I thought.
0:37:06 > 0:37:09- Slightly higher figures than we we're working to.- Mm.
0:37:10 > 0:37:13But as fantastic as those figures are,
0:37:13 > 0:37:16these two Kent developers aren't changing their game plan.
0:37:18 > 0:37:21We find that the financial advantage is in keeping the flats
0:37:21 > 0:37:22over a period of time.
0:37:22 > 0:37:26We are looking to build and keep flats over 10, 20 years.
0:37:31 > 0:37:35Time to return to the town of Ellenfoot in Cumbria.
0:37:35 > 0:37:37# That's not my name
0:37:37 > 0:37:38# That's not my name
0:37:38 > 0:37:40# That's not my name
0:37:40 > 0:37:42# That's not my name... #
0:37:42 > 0:37:43OK, OK -
0:37:43 > 0:37:48the name it's been known by since Georgian times, Maryport in Cumbria.
0:37:49 > 0:37:53We were here to see a three-bed three-floored terraced house
0:37:53 > 0:37:55with a guide price of £35,000-plus,
0:37:55 > 0:37:59and...well, a few problems to go with it.
0:38:01 > 0:38:03Urgh!
0:38:03 > 0:38:04That's not good.
0:38:07 > 0:38:10It was bought for the guide price of £35,000 by Dave.
0:38:10 > 0:38:14He was going to develop it with business partner Kevin.
0:38:14 > 0:38:17Could the boys dream up a profitable property,
0:38:17 > 0:38:19or is that the stuff of fantasy?
0:38:19 > 0:38:21Four months later, we've returned to find out.
0:38:25 > 0:38:29That bathroom's been totally redeveloped, and it's looking great.
0:38:29 > 0:38:32And while there's still work to be done on the rest of the house,
0:38:32 > 0:38:35the walls and ceilings have all been re-plastered
0:38:35 > 0:38:37so that it's just about ready to decorate.
0:38:38 > 0:38:41They've even found a use for the mezzanine passageway,
0:38:41 > 0:38:45putting in a WC to make a ground-floor toilet.
0:38:45 > 0:38:47As Kevin was on another job,
0:38:47 > 0:38:49we caught up with Dave and his wife Linda,
0:38:49 > 0:38:51to hear all about it.
0:38:51 > 0:38:55It's been four months almost to the day since we started the project.
0:38:55 > 0:38:58We've got about another four weeks to go.
0:38:58 > 0:39:00The top two rooms are both bedrooms.
0:39:00 > 0:39:04They just needed squaring up and stripping back and rebuilding, basically.
0:39:04 > 0:39:07Floorboards were replaced where necessary.
0:39:07 > 0:39:09The middle floor, the bathroom,
0:39:09 > 0:39:14that was a total, total disaster, that - all the floors came out of there,
0:39:14 > 0:39:16joists were replaced where necessary.
0:39:16 > 0:39:18The whole place has been rewired, replumbed.
0:39:18 > 0:39:21And then we're on the sitting room, which is the last room to do.
0:39:21 > 0:39:24So, that'll be happening in the next few weeks,
0:39:24 > 0:39:26we'll be into that and squaring that away.
0:39:26 > 0:39:29So, with a combined sitting room and kitchen the last on their list,
0:39:29 > 0:39:31they're getting there.
0:39:31 > 0:39:33Hang on, though - if the kitchen isn't finished yet,
0:39:33 > 0:39:35where are we interviewing them?
0:39:35 > 0:39:37Let's let Dave explain.
0:39:37 > 0:39:39Within a few days we decided to take away
0:39:39 > 0:39:41the chimney in the sitting room,
0:39:41 > 0:39:44to give a bit more width to the room.
0:39:44 > 0:39:47And we dropped the chimney onto the floor upstairs,
0:39:47 > 0:39:49cleared all the rubble away,
0:39:49 > 0:39:52and then we found a hole in the floor where the hearth was.
0:39:52 > 0:39:56And my grandson was here that day and we put a ladder down
0:39:56 > 0:39:58and dropped him into the hole,
0:39:58 > 0:40:02and he shone his torch around off his phone.
0:40:02 > 0:40:07And it became quite clear that we have to use this room.
0:40:07 > 0:40:09So, where's the kitchen?
0:40:09 > 0:40:13Yep - it's in the cellar they didn't even know existed.
0:40:13 > 0:40:17And moving it down there really seems to have solved a problem.
0:40:18 > 0:40:23The original room, which had got a lounge and a kitchen,
0:40:23 > 0:40:25we were struggling to get it to look anything.
0:40:25 > 0:40:29So to find a cellar, it was brilliant.
0:40:29 > 0:40:33I came down when they'd made access into it.
0:40:33 > 0:40:35It was very dark, I had a torch.
0:40:35 > 0:40:37It was an earth floor, and I thought,
0:40:37 > 0:40:39hmm, it's got to be very light in here.
0:40:39 > 0:40:43So, the vision was to have a light floor, light walls
0:40:43 > 0:40:46and I wanted a white kitchen, but it was too white.
0:40:46 > 0:40:49So, we put the floor down
0:40:49 > 0:40:54and then carried on with the rest of the kitchen equipment.
0:40:54 > 0:40:56Erm...
0:40:56 > 0:40:59And, really, I'm so pleased with it.
0:40:59 > 0:41:03It does look great. And, OK, it does mean another set of stairs,
0:41:03 > 0:41:07but on the other hand it means more room for the living area.
0:41:07 > 0:41:10But, discovering and renovating a secret new room
0:41:10 > 0:41:12would have had an effect on the budget.
0:41:12 > 0:41:14So, how HAVE they got on?
0:41:16 > 0:41:19The original budget we estimated between 12,000 and 15,000.
0:41:19 > 0:41:21That's now gone to 20,000.
0:41:21 > 0:41:27If we come in with 20,000 spent, then we're doing OK.
0:41:27 > 0:41:31Dave bought the house for its guide price of 35,000,
0:41:31 > 0:41:33and although his budget has gone up to 20,000,
0:41:33 > 0:41:35the property now has an additional room.
0:41:35 > 0:41:39His total spend is now 55,000.
0:41:39 > 0:41:42We've asked along two local property experts to get their opinion.
0:41:44 > 0:41:48How much could he expect were he to sell the property?
0:41:48 > 0:41:51We would estimate we could market the property for around £82,000.
0:41:51 > 0:41:55Done up to a good standard, I feel in the current market
0:41:55 > 0:41:57this property would achieve a sale value
0:41:57 > 0:42:00in the region of about £85,000.
0:42:00 > 0:42:03That would be a profit of up to £30,000,
0:42:03 > 0:42:06minus the usual taxes and expenses.
0:42:06 > 0:42:08Not bad for five months' work.
0:42:08 > 0:42:10And were the property to be rented...?
0:42:12 > 0:42:16We would expect that we could achieve around £400 per calendar month.
0:42:16 > 0:42:22In the region of £400-£425 per calendar month.
0:42:22 > 0:42:24- Oh, that's good. - That's all right.- Yeah. Yeah.
0:42:24 > 0:42:28I thought about 360, 380. So that's not bad.
0:42:28 > 0:42:30Yeah - well, that's... That's fine.
0:42:30 > 0:42:34This would give Dave a yield of just over 9%.
0:42:34 > 0:42:37Not bad, considering they're keeping the property as an investment
0:42:37 > 0:42:38and renting it out.
0:42:38 > 0:42:40So, what's next?
0:42:41 > 0:42:43Look for another one.
0:42:43 > 0:42:47No, not quite yet. I have to have two months off now.
0:42:47 > 0:42:51And then I'm allowed to start looking for another one.
0:42:51 > 0:42:55But, the next one, he will definitely look at before he buys it.
0:42:55 > 0:42:58I don't want the shock again that I had when I came in here.
0:42:58 > 0:43:00Yeah, but what a result.
0:43:03 > 0:43:05Well, that's all we've got time for
0:43:05 > 0:43:08but join us next time for more of the ups and downs...
0:43:08 > 0:43:10- Hopefully not too many downs. - Well, yes!
0:43:10 > 0:43:13..of property developing here on Homes Under The Hammer.
0:43:13 > 0:43:15- We'll see you then. - Goodbye.- Goodbye.