0:00:02 > 0:00:03Hello, and welcome to the programme.
0:00:03 > 0:00:06Now, Martin, I'm sure you'll agree with me, property developing
0:00:06 > 0:00:09is hard work, it's frustrating, but it is never boring.
0:00:09 > 0:00:10No, it's a fascinating world to be in.
0:00:10 > 0:00:14No properties are ever the same and no two days are ever the same.
0:00:14 > 0:00:17That's why we love it - buying homes under the hammer.
0:00:43 > 0:00:47Barons Court, Kensington, lies a short hop, skip and a jump
0:00:47 > 0:00:49from London's shops and museums
0:00:49 > 0:00:52and there's an eclectic variety of properties -
0:00:52 > 0:00:55townhouses, conversions, flats and mews.
0:00:55 > 0:00:56But, as we all know,
0:00:56 > 0:01:01living close to the city centre doesn't come cheap.
0:01:01 > 0:01:04The average price of a flat in Barons Court
0:01:04 > 0:01:06is over half a million quid.
0:01:06 > 0:01:08Even in an expensive area,
0:01:08 > 0:01:10there's sometimes a relative bargain to be found,
0:01:10 > 0:01:13and in the auction catalogue,
0:01:13 > 0:01:18with a guide price of just £350,000 plus, was this -
0:01:18 > 0:01:21a first-floor, one-bedroom flat!
0:01:21 > 0:01:25I can't wait to see what you get for that kind of money around here.
0:01:30 > 0:01:33I love these old mansion blocks,
0:01:33 > 0:01:35they just have such a lovely feeling
0:01:35 > 0:01:38and there's lots of light coming in.
0:01:38 > 0:01:41Already I'm feeling quite at home here. What's in here?
0:01:41 > 0:01:44SHE LAUGHS I am laughing, because you're in London
0:01:44 > 0:01:48and a lot of estate agents might call that bedroom number two.
0:01:48 > 0:01:50Clearly it's not big enough for that,
0:01:50 > 0:01:51you couldn't get a single bed in there,
0:01:51 > 0:01:54but it seems a waste of space to have that as a cupboard,
0:01:54 > 0:01:56so maybe in that little nook you could put a computer
0:01:56 > 0:02:00and just do something a little bit more interesting with it.
0:02:00 > 0:02:03So, the reception room - don't think the green is working.
0:02:03 > 0:02:06A nice, muted tone would work well.
0:02:06 > 0:02:08But a stunning bay window.
0:02:08 > 0:02:10That is absolutely gorgeous.
0:02:10 > 0:02:13So you could start from scratch, you've got the floorboards,
0:02:13 > 0:02:16so you could even put some nice hardwood flooring,
0:02:16 > 0:02:17but this is a leasehold flat,
0:02:17 > 0:02:20so you would need to get permission from the leaseholder, don't forget.
0:02:20 > 0:02:21So in here - the kitchen.
0:02:21 > 0:02:23SHE KNOCKS
0:02:23 > 0:02:25Would we like to knock through
0:02:25 > 0:02:29and make this one great big open-plan space?
0:02:29 > 0:02:31I think so, because it's almost as though
0:02:31 > 0:02:35there's too much stuff going on in here and it's not big enough.
0:02:35 > 0:02:38But, oh, there's doors - so that must mean outside space?
0:02:39 > 0:02:41I love this!
0:02:41 > 0:02:45It's only small, but you do have your very own balcony in London,
0:02:45 > 0:02:49outside space, glass of wine, cup of tea, whatever.
0:02:49 > 0:02:53From here I can see shops, bars, brasseries and life.
0:02:53 > 0:02:55You're in London, what's not to like?
0:03:01 > 0:03:04So this is the only bedroom in the flat,
0:03:04 > 0:03:06of course it's a one-bedroomed property,
0:03:06 > 0:03:08but it's a wonderful space in here - lovely high ceilings,
0:03:08 > 0:03:10again, you've got cornicing,
0:03:10 > 0:03:14two fabulous sash windows over there, and the bathroom.
0:03:14 > 0:03:16Again, this is a really big bathroom,
0:03:16 > 0:03:19you've got enough room for a shower, a big bath,
0:03:19 > 0:03:22there's even storage in there, which is good.
0:03:22 > 0:03:26The downside is, this is the only doorway into the loo,
0:03:26 > 0:03:27so if you're in the flat
0:03:27 > 0:03:30you're going to have to walk through the bedroom to get here.
0:03:30 > 0:03:33So I suppose you could create an independent access with the corridor,
0:03:33 > 0:03:35but it all depends on the budget
0:03:35 > 0:03:37and how far you want to go with a property like this.
0:03:37 > 0:03:41I think the interesting thing is here, it's London, it's location,
0:03:41 > 0:03:43the Tube station is literally around the corner,
0:03:43 > 0:03:46but when you look out the window...
0:03:48 > 0:03:52..there we go, there's the track right there.
0:03:52 > 0:03:56I'm just wondering how noisy it's going to be in this flat.
0:03:56 > 0:03:57These are single-glazed.
0:03:57 > 0:04:00It might be worth spending that extra bit of money
0:04:00 > 0:04:02and putting some double glazing in.
0:04:02 > 0:04:06The plumbing needs a bit of attention, the cold water feed
0:04:06 > 0:04:09to the electric shower is currently routed along the bedroom walls.
0:04:09 > 0:04:12Unobtrusive it is not.
0:04:12 > 0:04:16The actual bathroom fitments all need refreshing and replacing,
0:04:16 > 0:04:19and then that cupboard space I mentioned earlier...
0:04:19 > 0:04:24Well, a combi boiler replacing that tank might free up some space.
0:04:24 > 0:04:25So work to be done,
0:04:25 > 0:04:31but nothing that appears to make that guide price of 350,000 seem worrying.
0:04:31 > 0:04:35In London, prices can vary enormously within a few streets
0:04:35 > 0:04:37so we asked along a local agent
0:04:37 > 0:04:41to tell us more about the potential for this one-bed flat.
0:04:41 > 0:04:44If this flat was refurbished to a high standard,
0:04:44 > 0:04:47I would be expecting us to achieve, on the sale side,
0:04:47 > 0:04:50anything between £500,000
0:04:50 > 0:04:52to as much as £550,000
0:04:52 > 0:04:55if the market continues to go up as it has been.
0:04:55 > 0:04:57And as for rentals,
0:04:57 > 0:05:00it's a really good rental market at the moment so, if that continues,
0:05:00 > 0:05:04I would expect it to be achieving £1,500 per calendar month.
0:05:04 > 0:05:06So it's not a huge property.
0:05:06 > 0:05:09The bathroom might need some independent access,
0:05:09 > 0:05:12but there is potential to do it up and make a profit here.
0:05:12 > 0:05:16So let's see who wanted this at the auction.
0:05:16 > 0:05:18Move on to Lot 56.
0:05:18 > 0:05:20Around Barons Court area, a good area.
0:05:20 > 0:05:24Kensington, W14, near Queen's Club.
0:05:24 > 0:05:26Who would like to kick off on this?
0:05:26 > 0:05:27400?
0:05:28 > 0:05:31300 with you. 305?
0:05:31 > 0:05:32Anywhere?
0:05:33 > 0:05:37305 with you, madam. 310, 315.
0:05:37 > 0:05:41320... No, it's behind you. You had your chance. 315, 320.
0:05:41 > 0:05:44Well, the bids climb rapidly
0:05:44 > 0:05:48to where we rejoin the bidding at £450,000.
0:05:48 > 0:05:50450.
0:05:50 > 0:05:51455.
0:05:53 > 0:05:54460.
0:05:56 > 0:05:57465.
0:05:58 > 0:06:00470.
0:06:02 > 0:06:03475?
0:06:07 > 0:06:08475. 480?
0:06:12 > 0:06:14480. 485?
0:06:18 > 0:06:22Have a think. 480. 481 will maybe help a bit?
0:06:22 > 0:06:24You never know, it might stop him. 481?
0:06:24 > 0:06:27Yeah, 481. 482?
0:06:28 > 0:06:30No?
0:06:30 > 0:06:31482, yes?
0:06:32 > 0:06:35Come on, 1,000 and you're going to miss it. 481.
0:06:35 > 0:06:38You're being a gentleman. There's not a gentleman in the room.
0:06:38 > 0:06:41481, with the lady. 482?
0:06:41 > 0:06:43481 with the lady.
0:06:43 > 0:06:47First time, second time, third and last time.
0:06:47 > 0:06:49If you're all done...
0:06:49 > 0:06:50481.
0:06:50 > 0:06:52You're very lucky, madam.
0:06:52 > 0:06:54MUSIC: Luck Be A Lady by Frank Sinatra
0:06:54 > 0:06:56# Luck be a lady tonight... #
0:06:56 > 0:06:58And the lucky lady bidder was Cherry.
0:06:58 > 0:07:02Her successful bid of £481,000
0:07:02 > 0:07:07was a substantial £131,000 over the guide price.
0:07:07 > 0:07:11I met her at the flat along with her personal trainer and friend, Charlie.
0:07:12 > 0:07:16Cherry and Charlie, lovely meeting you both today.
0:07:16 > 0:07:19So this is for you, and what's Charlie's input going to be?
0:07:19 > 0:07:20So, Charlie's helping me with it,
0:07:20 > 0:07:23so he's going to help with the project management
0:07:23 > 0:07:24and also he's very well connected
0:07:24 > 0:07:27so we'll be using his contacts to do the work here.
0:07:27 > 0:07:29So, guys, how did this all come about?
0:07:29 > 0:07:32- Was it over a training session? - Yes.- It actually was.- Was it?
0:07:32 > 0:07:35You should have been sweating and doing lots of hard work.
0:07:35 > 0:07:38She was out of breath, so when I put it across to her
0:07:38 > 0:07:40she couldn't really say no. So, yeah.
0:07:40 > 0:07:41So, come on, tell me.
0:07:41 > 0:07:44When I first met Charlie last year, I had my own business
0:07:44 > 0:07:47and I was just in the process of selling that business,
0:07:47 > 0:07:51so I said to him I wanted to use the money to start doing this.
0:07:51 > 0:07:54This is something that my parents have done for years and years,
0:07:54 > 0:07:56so I've always wanted to do it as well.
0:07:56 > 0:07:58So what makes you think, guys,
0:07:58 > 0:08:02that you can add value to quite a small flat like this,
0:08:02 > 0:08:05enough to then reap the rewards and move on to the next one?
0:08:05 > 0:08:07I think, if we get the touch right,
0:08:07 > 0:08:10hopefully someone will come in and fall in love with the flat
0:08:10 > 0:08:12and they'll want to take it.
0:08:12 > 0:08:14So, Charlie, what is the magic touch? Tell me.
0:08:14 > 0:08:19The magic touch is... light and airy, I suppose.
0:08:19 > 0:08:21We just need to go high-quality
0:08:21 > 0:08:23and I think that will sell this.
0:08:23 > 0:08:25And they have ambitious plans
0:08:25 > 0:08:28for the space currently used as a cylinder cupboard.
0:08:28 > 0:08:32We thought maybe putting a cloakroom in there would be a good idea
0:08:32 > 0:08:34but take the wall back and make it smaller.
0:08:34 > 0:08:38That's a great idea to have a secondary loo,
0:08:38 > 0:08:39not that you do need it,
0:08:39 > 0:08:42or you could maybe think about a little corridor into that bathroom,
0:08:42 > 0:08:44so it's independent.
0:08:44 > 0:08:47So, guys, what is the budget? Let's start with that.
0:08:47 > 0:08:5120,000, because we want to have a really nice kitchen and bathroom,
0:08:51 > 0:08:56- because we feel that is really the selling point for the flat.- OK.
0:08:56 > 0:08:59And we've got a 5,000 contingency.
0:08:59 > 0:09:02OK, so £20,000-£25,000 budget.
0:09:02 > 0:09:05Timescale? How long are you thinking it is going to take you?
0:09:05 > 0:09:08Three months is what we've set ourselves.
0:09:08 > 0:09:10Cherry, have you ever done anything like this before?
0:09:10 > 0:09:12Not for property development, but I've done it to live in.
0:09:12 > 0:09:14The house that I live in at the moment,
0:09:14 > 0:09:17we had to rent a house for six months while it was being done,
0:09:17 > 0:09:22so I've lived through a huge, huge project of totally re-doing a house.
0:09:22 > 0:09:26So, coming in to see what we need to do here is not daunting at all.
0:09:26 > 0:09:29What do your family think, particularly your mum and dad,
0:09:29 > 0:09:31because this is what they used to do?
0:09:31 > 0:09:34My mum is really excited about it.
0:09:34 > 0:09:38My husband was really cross with how much money I spent at the auction,
0:09:38 > 0:09:41and so I had to get her on the phone
0:09:41 > 0:09:44and she assured him that it's in the blood, so it's all going to be OK.
0:09:44 > 0:09:46Well, guys, it's been lovely meeting you both today,
0:09:46 > 0:09:50and I really hope you can put the Charlie touch to this flat.
0:09:50 > 0:09:52I'm sure it's going to look fantastic
0:09:52 > 0:09:54and we will be back to check up on you.
0:09:54 > 0:09:57- Brilliant.- Lovely to meet you. Well done.- Thank you.
0:09:57 > 0:10:00Well, Cherry is taking on the family tradition
0:10:00 > 0:10:03of just setting off on her first property development venture.
0:10:03 > 0:10:05How will she get on?
0:10:05 > 0:10:07With Charlie's help,
0:10:07 > 0:10:10well, hopefully she'll turn this tired little flat
0:10:10 > 0:10:12into a bijou pad for a king.
0:10:12 > 0:10:15You can find out if Charlie does add his magic touch
0:10:15 > 0:10:17later in the programme.
0:10:22 > 0:10:25Singer Tom Jones has a lot to thank Abertillery
0:10:25 > 0:10:27in his home country of Wales for.
0:10:27 > 0:10:28# Yeah... #
0:10:28 > 0:10:31It was his performance in the Top Hat Club here
0:10:31 > 0:10:34that led to him being signed by manager Gordon Mills.
0:10:34 > 0:10:36The rest we can say is pop history.
0:10:36 > 0:10:38MUSIC: If I Only Knew by Tom Jones
0:10:38 > 0:10:39# If I only knew
0:10:39 > 0:10:41# What I could do
0:10:41 > 0:10:43# To make you, make you love me
0:10:43 > 0:10:45# To make you, make you love me. #
0:10:45 > 0:10:52£15,000 plus was the guide price for the property that I'm about to see.
0:10:52 > 0:10:55What do you reckon you get for that? Can't be much, can it?
0:10:56 > 0:11:02Well, it's a two-bed terrace. How bad can it be?
0:11:02 > 0:11:03Erm...
0:11:03 > 0:11:07Well...seen worse.
0:11:07 > 0:11:09It doesn't smell too bad.
0:11:09 > 0:11:13So, the corridor - pine-tastic.
0:11:13 > 0:11:16The front living-room area there - it looks dark, obviously,
0:11:16 > 0:11:19because you've got those boards on the windows.
0:11:19 > 0:11:21Just to take those off would make that room feel a lot better.
0:11:21 > 0:11:25But it seems all right. Bits of wood lying around all over the place.
0:11:25 > 0:11:26Stairs up to your two bedrooms there -
0:11:26 > 0:11:28it's a pretty traditional layout.
0:11:28 > 0:11:30Into the...
0:11:31 > 0:11:33Eww.
0:11:33 > 0:11:36Into the slightly wonky-feeling back room.
0:11:36 > 0:11:38I'm not sure if there is a problem here,
0:11:38 > 0:11:42but it feels, when you step in here, like there's definitely a slope.
0:11:42 > 0:11:45I know the road's on a slope, but I don't think that's an excuse.
0:11:45 > 0:11:48So that needs to be checked out, but it's a half-decent-sized space.
0:11:48 > 0:11:52So far, so middle-of-the-road.
0:11:52 > 0:11:56And then - ahem - into the kitchen.
0:11:56 > 0:11:59Obviously built into some kind of little extension thing
0:11:59 > 0:12:00on the back here.
0:12:00 > 0:12:04This is the kitchen, there's also a loo there with a shower in it.
0:12:04 > 0:12:06Er, OK.
0:12:08 > 0:12:09HE INHALES SHARPLY
0:12:09 > 0:12:12Erm, a bit of work to be done, eh? Ahem.
0:12:13 > 0:12:18# What would you do about you
0:12:18 > 0:12:20# If you were me. #
0:12:23 > 0:12:27So, upstairs, and in one of the bedrooms, a boiler.
0:12:27 > 0:12:29Now, that looks absolutely ancient
0:12:29 > 0:12:32and it definitely needs to be got rid of
0:12:32 > 0:12:35and, I would say, relocate it out of the bedroom.
0:12:35 > 0:12:38We don't like boilers in bedrooms, ideally.
0:12:38 > 0:12:42Erm, up here, again, this feeling - whoa, whoa, whoa!
0:12:42 > 0:12:46Upstairs, as well, is majorly sloping.
0:12:46 > 0:12:48It's a good-size room
0:12:48 > 0:12:51and then a very traditional sort of layout.
0:12:51 > 0:12:53A little danger zone here.
0:12:55 > 0:12:58A little mini landing you have to step across
0:12:58 > 0:13:01to get to the other bedroom. Not a bad size.
0:13:01 > 0:13:03Again, very slopey down this way.
0:13:03 > 0:13:06Oh, my goodness gracious, what's that?
0:13:06 > 0:13:10Wow. Bare wires. I don't think I'll touch those.
0:13:10 > 0:13:15Just something to be aware of when you're looking round properties -
0:13:15 > 0:13:17auction ones or otherwise -
0:13:17 > 0:13:19just be careful.
0:13:19 > 0:13:21MUSIC: Danger! High Voltage by Electric Six
0:13:21 > 0:13:25# Danger! Danger! High voltage
0:13:25 > 0:13:27# When we touch
0:13:27 > 0:13:29# And when we kiss. #
0:13:29 > 0:13:33So it's not just the guide price that's shocking here.
0:13:33 > 0:13:36Joking aside, there's plenty to do in this house
0:13:36 > 0:13:39and making it safe should be the first job on the list.
0:13:40 > 0:13:44Behind the property there is a communal lane
0:13:44 > 0:13:46that has access from the side of the terrace
0:13:46 > 0:13:48and up to some higher ground,
0:13:48 > 0:13:50from which you can get a clearer idea
0:13:50 > 0:13:52of the state the property is in.
0:13:54 > 0:13:57Good news. The main roof doesn't look to be in too bad condition.
0:13:57 > 0:14:02It's really this one that sits above the kitchen and the bathroom
0:14:02 > 0:14:04which definitely needs some attention.
0:14:04 > 0:14:09But, you know, is it going to cost a lot? Probably not.
0:14:09 > 0:14:13Another bonus when you step out the back here, you have access to this -
0:14:13 > 0:14:14this is your garden.
0:14:14 > 0:14:17I imagine at some stage that was a garage.
0:14:17 > 0:14:19Good news, there's a little access road at the back there,
0:14:19 > 0:14:22so you could have it as a usable garage.
0:14:22 > 0:14:24It's just a little bonus
0:14:24 > 0:14:27on a property which doesn't have to do much
0:14:27 > 0:14:29to justify its guide price, does it?
0:14:29 > 0:14:32Yes, it may be in need of a fair bit of work,
0:14:32 > 0:14:36but that guide price of £15,000
0:14:36 > 0:14:38is hard to argue with.
0:14:38 > 0:14:42However, we are in an area which has a ceiling price,
0:14:42 > 0:14:44so you will need to watch your budget.
0:14:46 > 0:14:48What does a local estate agent make of the property?
0:14:48 > 0:14:52What could it expect to generate
0:14:52 > 0:14:54once the work is complete?
0:14:55 > 0:14:58I would expect this property to rent out
0:14:58 > 0:15:00for approximately £350 per calendar month.
0:15:00 > 0:15:03And how about for resale?
0:15:03 > 0:15:05Once this property is completely renovated,
0:15:05 > 0:15:07I would recommend that it would achieve
0:15:07 > 0:15:09somewhere in the region of £60,000.
0:15:11 > 0:15:14Well, potentially a few structural issues
0:15:14 > 0:15:18and definitely a lot of cosmetic ones. Oh, boy!
0:15:18 > 0:15:22Yeah, new kitchen, bathroom, walls, plastering, electrics,
0:15:22 > 0:15:26all that kind of stuff. Still, what do you expect for 15 grand plus?
0:15:26 > 0:15:29Let's see what it actually sold for when it went under the hammer.
0:15:35 > 0:15:36It's a mid-terraced house.
0:15:36 > 0:15:38Requires upgrading and modernisation.
0:15:38 > 0:15:40Guided there at just £15,000.
0:15:40 > 0:15:44Who's going to start me? Start me at 15, will you?
0:15:44 > 0:15:4815. It's cheap at 15. Start me at 15, somebody. Put a hand up. 15, 12.
0:15:48 > 0:15:51Make it 10 then, just to get it off the mark, if you like. 10 can I see?
0:15:51 > 0:15:55Thank you, I've got you at 10. 11, sir, can I say? 11, thank you.
0:15:55 > 0:15:59And 12? Thank you, at 12. And 13. 13, now.
0:15:59 > 0:16:02At 12 we've got you there standing. At 12. At 13. Thank you, 13.
0:16:02 > 0:16:0414? 14?
0:16:04 > 0:16:0514. 15?
0:16:05 > 0:16:0816? 16? 16.
0:16:08 > 0:16:1117? 18? 18?
0:16:11 > 0:16:1418 new bidder. Thank you, 18. 19 now.
0:16:14 > 0:16:1719. 20. 21?
0:16:17 > 0:16:1821, now.
0:16:18 > 0:16:19I'll take a half if it helps you.
0:16:19 > 0:16:22I've got £20,000 on my left-hand side, standing here.
0:16:22 > 0:16:25For the first time at £20,000.
0:16:25 > 0:16:27And for the second time.
0:16:27 > 0:16:30Third and last time. Are we all done at £20,000?
0:16:30 > 0:16:33Sold, sir, yours. Your number, please?
0:16:33 > 0:16:35The successful bid of £20,000
0:16:35 > 0:16:37belonged to Chris.
0:16:39 > 0:16:44Chris recently took early retirement from the IT and electronics sector
0:16:44 > 0:16:48and has been looking for a house to begin property-developing.
0:16:48 > 0:16:51He's managed to enlist the help of his son, Dale,
0:16:51 > 0:16:53for this, his first project.
0:16:53 > 0:16:56It was back at the property where I met them both.
0:16:56 > 0:17:00- Chris, Dale, good to meet you both. - Likewise.- Congratulations.
0:17:00 > 0:17:03Tell me why you wanted to buy this place.
0:17:03 > 0:17:06I think the first attraction was the price.
0:17:06 > 0:17:10To get a house for £20,000 anywhere in the country is pretty good.
0:17:10 > 0:17:13- Are you working together on the project?- Yes, we are, yes.
0:17:13 > 0:17:16- First time working together? - Yes, it will be.
0:17:16 > 0:17:18So how's that going to go?
0:17:18 > 0:17:20Well, we'll find out soon.
0:17:20 > 0:17:22THEY LAUGH
0:17:22 > 0:17:24Chris has earmarked a 15-week timeframe
0:17:24 > 0:17:28to get this first venture into property developing done.
0:17:28 > 0:17:31So hopefully, the father-and-son team will run smoothly.
0:17:34 > 0:17:36So, Dale, what's your involvement in all of this?
0:17:36 > 0:17:39I'm going for the landscaping out the back,
0:17:39 > 0:17:41removal of rubble, concrete.
0:17:41 > 0:17:44Basically stripping the building back to a frame.
0:17:44 > 0:17:47So you're the workforce, are you?
0:17:47 > 0:17:50- I'm demolition.- Demolition!
0:17:50 > 0:17:52What do you think the biggest issues are?
0:17:52 > 0:17:55I think getting the roof sorted - the extension roof -
0:17:55 > 0:17:58that's got to be done up front.
0:17:58 > 0:18:00I'm also moving the shower room,
0:18:00 > 0:18:03which is downstairs at the moment,
0:18:03 > 0:18:05to a bathroom upstairs.
0:18:05 > 0:18:07And what will you do with the little toilet downstairs?
0:18:07 > 0:18:10That will become part of the kitchen,
0:18:10 > 0:18:12so it will all be opened up.
0:18:12 > 0:18:14The kitchen will be open-plan with a little dining room.
0:18:14 > 0:18:17That sounds lovely. What about the slopes?
0:18:17 > 0:18:19There do seem to be quite a few of them, don't there?
0:18:19 > 0:18:22Yes, I did notice when I viewed it.
0:18:22 > 0:18:24It's actually a bit worse than I thought.
0:18:24 > 0:18:27It's somewhere between a four- and six-inch drop
0:18:27 > 0:18:29actually going across the bedroom,
0:18:29 > 0:18:32so I'm going to have to re-level the boards.
0:18:32 > 0:18:34What's the budget for the work?
0:18:34 > 0:18:36Approximately 15,000.
0:18:36 > 0:18:40- OK, so quite a healthy budget for the property.- Yes, it does need it.
0:18:40 > 0:18:44I do need to bring in plumbers, gas fitters, electricians,
0:18:44 > 0:18:47so that's all part of the budget.
0:18:47 > 0:18:49What's the bigger-picture plan for it?
0:18:49 > 0:18:52Is it to do it up and sell it on, or rent it out, or what?
0:18:52 > 0:18:55To sell it on. I'm hoping this will be the first of many projects.
0:18:55 > 0:18:57- Well, listen, congratulations. - Thank you very much.
0:18:57 > 0:19:01Good luck with it, and we look forward to seeing how you get on.
0:19:03 > 0:19:06So father-and-son team Chris and Dale
0:19:06 > 0:19:08embarking on their first
0:19:08 > 0:19:10property-development venture together.
0:19:10 > 0:19:13Well, what do you think about the £20,000 price?
0:19:13 > 0:19:16There are bargains out there.
0:19:16 > 0:19:18How will they get on sorting it out?
0:19:18 > 0:19:20You can find out later in the show.
0:19:22 > 0:19:24Still to come in Walderslade, Chatham,
0:19:24 > 0:19:26there's trouble in the air...
0:19:27 > 0:19:28And the smell?
0:19:28 > 0:19:30HE INHALES AND COUGHS
0:19:30 > 0:19:31Worse, if anything!
0:19:34 > 0:19:36And in Abertillery in Wales,
0:19:36 > 0:19:38how did the father-and-son team get on?
0:19:38 > 0:19:42We did have some free and frank discussions at times.
0:19:49 > 0:19:52It's now back to the sought-after area of Barons Court
0:19:52 > 0:19:54in West Kensington, London.
0:19:54 > 0:19:56A desirable area of the capital
0:19:56 > 0:20:00where the average one-bedroom flat sells for around 500,000 -
0:20:00 > 0:20:04so I was excited to look around this first-floor, one-bedroom flat
0:20:04 > 0:20:08that had a guide price of 350,000 plus.
0:20:09 > 0:20:13Well, someone who was all on board for this property was Cherry,
0:20:13 > 0:20:15who went way beyond the guide price
0:20:15 > 0:20:19with a successful bid of 481,000.
0:20:19 > 0:20:22Cherry had with her friend and personal trainer Charlie,
0:20:22 > 0:20:25who would be helping her with the renovation.
0:20:26 > 0:20:28It's now six months later,
0:20:28 > 0:20:32and we've returned to Barons Court to see how the work's gone.
0:20:44 > 0:20:48Yup, they certainly promised a little Charlie magic - and there it is!
0:20:48 > 0:20:51A terrific transformation,
0:20:51 > 0:20:54taking out the wall that divided the living room and the kitchen,
0:20:54 > 0:20:57and it's created an up-to-the-minute, open-plan space -
0:20:57 > 0:21:00perfect for the young professionals they're hoping to attract.
0:21:01 > 0:21:04I'm glad they've utilised that cupboard.
0:21:04 > 0:21:08It's now part of the living area, not a square foot wasted at all.
0:21:08 > 0:21:11The boiler is now a combi and it's in the kitchen.
0:21:20 > 0:21:23The bedroom has been tastefully decorated to a high standard,
0:21:23 > 0:21:25and although I would've liked to have seen
0:21:25 > 0:21:27a separate entrance to the bathroom,
0:21:27 > 0:21:31there's no doubt that its clean lines are stylish and practical.
0:21:39 > 0:21:42Time to catch up with Cherry and Charlie
0:21:42 > 0:21:45to find out how it's all been for them.
0:21:45 > 0:21:48I'm most pleased with the overall look of the flat.
0:21:48 > 0:21:51If we remember what the flat was actually like,
0:21:51 > 0:21:55with woodchip everywhere, really revolting green colour.
0:21:55 > 0:21:57But just to see the transformation
0:21:57 > 0:22:01and, you know, the flat was very sorry for itself in the early days
0:22:01 > 0:22:04and now it's just fantastic.
0:22:06 > 0:22:10So, with this, their first venture into property development together,
0:22:10 > 0:22:12how has it all worked out?
0:22:12 > 0:22:14My role was pretty much dealing with the builders
0:22:14 > 0:22:18and getting the work ready and going,
0:22:18 > 0:22:20liaising with everyone,
0:22:20 > 0:22:23making sure everyone's on time and what have you.
0:22:23 > 0:22:26I actually did a bit of work in the flat as well.
0:22:26 > 0:22:29I had to take some wallpaper down, stripping wallpaper,
0:22:29 > 0:22:32clearing some rubbish, some of the tiling.
0:22:32 > 0:22:33Well, all of the tiling, in fact.
0:22:33 > 0:22:39But apart from that, yeah, I've pretty much been...in doing the work
0:22:39 > 0:22:40and taking Cherry's orders.
0:22:40 > 0:22:42Quite right too.
0:22:44 > 0:22:48So I have not really been that much involved in what's been going on.
0:22:48 > 0:22:52I like choosing colours
0:22:52 > 0:22:55and deciding what the carpet's going to be like
0:22:55 > 0:22:58and which tiles we're using.
0:22:58 > 0:23:00I've really enjoyed doing all that
0:23:00 > 0:23:02but I haven't got my hands dirty at all, I have to confess.
0:23:02 > 0:23:05- You did help me with the wallpapering once.- Did I?- Yeah.
0:23:05 > 0:23:09Oh, I did pull a bit of wallpaper down over there somewhere.
0:23:10 > 0:23:12A lady after my own heart!
0:23:12 > 0:23:16Because of a change to the permission from the freeholders to do the work,
0:23:16 > 0:23:19it actually took five months
0:23:19 > 0:23:23and their budget of £20,000, plus a five-grand contingency,
0:23:23 > 0:23:25came in at £23,000
0:23:25 > 0:23:28which, I think, is not bad at all
0:23:28 > 0:23:31considering the transformation here.
0:23:31 > 0:23:34However, one of the big concerns was the sound of the trains outside.
0:23:34 > 0:23:38What happened to the idea of double-glazing the windows
0:23:38 > 0:23:39to tackle the noise?
0:23:39 > 0:23:41This is a leasehold flat, it's not freehold,
0:23:41 > 0:23:43so the freeholder is Hammersmith and Fulham Council
0:23:43 > 0:23:46and they're responsible for all the windows.
0:23:46 > 0:23:49One of the things I've been doing is trying to find out from them
0:23:49 > 0:23:52when they're actually going to redo all the windows
0:23:52 > 0:23:54and whether it was worth it
0:23:54 > 0:23:57for me to actually invest in doing the windows.
0:23:57 > 0:23:59So I have actually got in writing from them
0:23:59 > 0:24:01that they're going to do that at the beginning of next year,
0:24:01 > 0:24:03so all the windows will be replaced.
0:24:06 > 0:24:10Putting aside any future costs of the share of the windows,
0:24:10 > 0:24:13Cherry has invested 504,000 in this flat.
0:24:13 > 0:24:17You may recall Cherry's husband wasn't best pleased
0:24:17 > 0:24:21that she paid 131,000 over the guide price.
0:24:21 > 0:24:24So who will be eating humble pie?
0:24:24 > 0:24:27Let's see what two local estate agents reckon.
0:24:28 > 0:24:31I would suggest a marketing figure
0:24:31 > 0:24:34between £500,000 and £550,000,
0:24:34 > 0:24:36and expect to achieve
0:24:36 > 0:24:38fairly close to those figures.
0:24:38 > 0:24:41For sale, I think this property would sell
0:24:41 > 0:24:45at approximately £525,000.
0:24:45 > 0:24:50I'm quite disappointed with that, with 525,000.
0:24:50 > 0:24:51I would like to get more than that
0:24:51 > 0:24:55and, I think, when we originally started with this flat,
0:24:55 > 0:24:57we did talk to a couple of estate agents
0:24:57 > 0:24:59about how much we thought we would get
0:24:59 > 0:25:02and they said more around the 550-plus mark.
0:25:02 > 0:25:04So I'd be happier to get something a bit higher.
0:25:06 > 0:25:10Well, if Cherry did achieve her preferred 550,000,
0:25:10 > 0:25:14that would mean a pre-tax profit of £46,000.
0:25:14 > 0:25:18And with the estate agents predicting an average rental
0:25:18 > 0:25:19of £1,475 per calendar month,
0:25:19 > 0:25:24bringing in a rental yield of over 3.5%,
0:25:24 > 0:25:26it leaves Cherry with a decision to make.
0:25:26 > 0:25:30I think we should put it on the market and just see what happens.
0:25:30 > 0:25:32See how much interest there is in it.
0:25:32 > 0:25:37If we decide that it's not going to go for as much as we want it to,
0:25:37 > 0:25:38then we'll probably rent it out.
0:25:43 > 0:25:46We're going a little back in time now to February 2014,
0:25:46 > 0:25:50and the area of Walderslade, only ten minutes from Chatham.
0:25:52 > 0:25:55It's a popular area, well served with commuter links.
0:25:55 > 0:25:57When the property that was up for auction
0:25:57 > 0:26:01was described as substantial,
0:26:01 > 0:26:04with a guide price of just £200,000-£210,000,
0:26:04 > 0:26:08you've got to think, "Whoa-ho-ho! This could be brilliant."
0:26:08 > 0:26:13Behind this rather... mishmash of trees and shrubs
0:26:13 > 0:26:16is the property itself - and substantial it most certainly is.
0:26:16 > 0:26:19Two doors to go into. Which one should we choose?
0:26:19 > 0:26:20Eeny-meeny-miny-mo...
0:26:20 > 0:26:21That one!
0:26:23 > 0:26:25One side of this property was a semi,
0:26:25 > 0:26:28and this side was divided into two flats.
0:26:28 > 0:26:30But, oh, dear...
0:26:30 > 0:26:33The first thing is, the moment you walk in the door,
0:26:33 > 0:26:34this overwhelming smell of damp.
0:26:34 > 0:26:36MUSIC: Dirty, Dirty Feeling by Elvis Presley
0:26:36 > 0:26:38# I got a dirty, dirty feeling
0:26:38 > 0:26:40# Dirty feeling's goin' on. #
0:26:42 > 0:26:44It was a substantial property,
0:26:44 > 0:26:48but clearly there was a substantial amount of work to do.
0:26:48 > 0:26:51On the plus side, it had a decent-sized lounge,
0:26:51 > 0:26:53bedroom and bathroom,
0:26:53 > 0:26:55was double-glazed and had a garden.
0:26:58 > 0:27:01Would it be smelling of roses in the upstairs flat, though?
0:27:03 > 0:27:08Worse, if anything! Not good at all. What is good is the size.
0:27:08 > 0:27:12Like downstairs, a really nice-sized living room here.
0:27:12 > 0:27:15Through to the kitchen.
0:27:15 > 0:27:19Now, it's kind of a kitchen with...two sides.
0:27:19 > 0:27:24This side here - well, you know, old units but nothing too dramatic.
0:27:24 > 0:27:27This side, however...
0:27:27 > 0:27:28not good.
0:27:30 > 0:27:33So there were some definite issues with the roof.
0:27:33 > 0:27:36But at least the bedroom was looking in the pink
0:27:36 > 0:27:39and it had access to a roof terrace.
0:27:41 > 0:27:44But the bathroom was a little odd,
0:27:44 > 0:27:46with a bath wrapped in carpet.
0:27:46 > 0:27:50Yes, that's a new one on me, and hopefully never to be repeated.
0:27:50 > 0:27:53And the outside needed some work for sure.
0:27:58 > 0:28:01Next door, in this really substantial property,
0:28:01 > 0:28:04was this semidetached three-bedroom house,
0:28:04 > 0:28:07and I had my nose at the ready for the smell of damp.
0:28:07 > 0:28:10But the air of neglect wasn't present on that side
0:28:10 > 0:28:13and the air was fresh and clean.
0:28:13 > 0:28:14But it was all a bit dated,
0:28:14 > 0:28:16especially in the kitchen department.
0:28:18 > 0:28:19The only downside I could see
0:28:19 > 0:28:22was that this property was right next to a school,
0:28:22 > 0:28:26but I guess if you had kids the proximity could be a plus.
0:28:29 > 0:28:32Upstairs, the house ticked all the family boxes,
0:28:32 > 0:28:36with three decent bedrooms...
0:28:36 > 0:28:39a separate bathroom and toilet...
0:28:41 > 0:28:44..and there was double glazing throughout,
0:28:44 > 0:28:47and what looked like a fairly new boiler.
0:28:47 > 0:28:50So this was indeed a property of two halves
0:28:50 > 0:28:54but, with what was a guide price of £200-210,000,
0:28:54 > 0:28:57I expected it to be a popular lot at the auction.
0:28:59 > 0:29:02A property developer's dream, I would have thought.
0:29:02 > 0:29:04Start me where you will. Good-sized plot.
0:29:04 > 0:29:06180? 180 do I say?
0:29:06 > 0:29:08180. 180, I'm on the way.
0:29:08 > 0:29:09190 I'm bid. 190.
0:29:09 > 0:29:12200? 200 if you like.
0:29:12 > 0:29:15195 I've got on my right. 200 if you like?
0:29:15 > 0:29:18200 I'm bid. 205 now if you like?
0:29:18 > 0:29:20'The lot did indeed prove popular,
0:29:20 > 0:29:24'and we rejoined it at £300,000.'
0:29:24 > 0:29:26300. And five.
0:29:26 > 0:29:28305 I'm look for.
0:29:28 > 0:29:30305. And ten.
0:29:30 > 0:29:33307? 307 I've got.
0:29:33 > 0:29:34And 310.
0:29:34 > 0:29:36312? No, definitely not.
0:29:36 > 0:29:39At £310,000 in the front row, then, for the first time.
0:29:39 > 0:29:42£310,000 for the second time.
0:29:42 > 0:29:45Third and final time at 310 in the front row. Make no mistake.
0:29:45 > 0:29:47All done?
0:29:47 > 0:29:50- GAVEL BANGS - £310,000.
0:29:50 > 0:29:53The lot was bought for £310,000 by Robin,
0:29:53 > 0:29:58who works in insurance but has developed new builds before.
0:30:00 > 0:30:02So this was a departure for him,
0:30:02 > 0:30:06and his two sisters are silent partners in the venture.
0:30:09 > 0:30:13This was a big property, not Robin's usual territory.
0:30:13 > 0:30:16But he did have a secret weapon.
0:30:16 > 0:30:18I've got a contractor.
0:30:18 > 0:30:22He's worked for me on a conversion that I've just recently done.
0:30:22 > 0:30:24The contractor, Paul,
0:30:24 > 0:30:27- has done an excellent job in a short period of time.- Right.
0:30:27 > 0:30:29We work very well together.
0:30:29 > 0:30:32- It just seemed a perfect marriage.- Great.
0:30:32 > 0:30:34- So, has he seen it yet?- He has.
0:30:34 > 0:30:37He came with us when we viewed it initially
0:30:37 > 0:30:39before going to the auction.
0:30:39 > 0:30:42We got an idea from him as to what it will cost to do it up.
0:30:42 > 0:30:46- What did he say? - Approximately 40,000.
0:30:46 > 0:30:50A 40-grand costing seems like a stonking deal to me,
0:30:50 > 0:30:54and Robin's timescale of up to six months seemed pretty realistic.
0:30:55 > 0:30:58Well, that was in February 2014,
0:30:58 > 0:31:00and when we returned five months later
0:31:00 > 0:31:03things were looking promising.
0:31:03 > 0:31:04Or, should I say, part of it was.
0:31:04 > 0:31:06MUSIC: Livin' On A Prayer by Bon Jovi
0:31:06 > 0:31:09# Ohh, we're halfway there
0:31:09 > 0:31:13# Ohh, livin' on a prayer
0:31:13 > 0:31:17# Take my hand, we'll make it I swear
0:31:17 > 0:31:21# Ohh, livin' on a prayer
0:31:21 > 0:31:26# Livin' on a prayer... #
0:31:26 > 0:31:29The three-bed house was nearly complete and ready to go.
0:31:39 > 0:31:42But less ready - well, actually relatively untouched -
0:31:42 > 0:31:47were the flats, which were more or less as we left them.
0:31:47 > 0:31:51The house will be finished in the next seven to ten days, roughly.
0:31:51 > 0:31:54As soon as they're done, we're going to put this house on the market
0:31:54 > 0:31:59and Paul will start on the flats. Paul has already kind of started.
0:31:59 > 0:32:02We envisage it will be done within the next two to three months,
0:32:02 > 0:32:06and then the whole project will have reached its conclusion.
0:32:06 > 0:32:09And nine months after our first visit, we're going back again,
0:32:09 > 0:32:14and you can see how Robin's project has progressed later in the show.
0:32:14 > 0:32:16MUSIC: See You Later Alligator by Bill Haley and the Comets
0:32:16 > 0:32:19# See you later, alligator
0:32:19 > 0:32:20# After a while, crocodile. #
0:32:25 > 0:32:27TOM JONES: # Yeeaaaaahhhhhh... #
0:32:30 > 0:32:33That voice can only mean one thing - we're back in Abertillery,
0:32:33 > 0:32:37once a venue for the talent of the legendary Tom Jones.
0:32:37 > 0:32:41The house we were here to see, though, was far from legendary.
0:32:41 > 0:32:45Yes, it may be in need of a fair bit of work,
0:32:45 > 0:32:50but that guide price of £15,000 is hard to argue with.
0:32:50 > 0:32:52OK, so maybe not quite a steal,
0:32:52 > 0:32:56but certainly low enough to tempt Chris and son Dale
0:32:56 > 0:33:00to make the successful bid of £20,000.
0:33:03 > 0:33:08Eight months later, and we return to meet up with Chris and Dale
0:33:08 > 0:33:12to see if they made a new home out of that run-down residence.
0:33:12 > 0:33:14MUSIC: Something New by Girls Aloud
0:33:14 > 0:33:17# We girls going to run this, run this
0:33:17 > 0:33:19# All I want is something new
0:33:19 > 0:33:23# Something I can hold on to... #
0:33:23 > 0:33:26Chris has done a terrific job,
0:33:26 > 0:33:28knocking down walls to open up the space
0:33:28 > 0:33:30and giving the house a full modernisation,
0:33:30 > 0:33:35including moving that bathroom upstairs.
0:33:35 > 0:33:36But there was a lot of work to tackle
0:33:36 > 0:33:39and they're not there yet,
0:33:39 > 0:33:40so what have they done?
0:33:42 > 0:33:45The house has been completely rewired, re-plumbed,
0:33:45 > 0:33:49new central heating, it's also been completely plastered,
0:33:49 > 0:33:53every wall in the house and ceilings have been plastered.
0:33:54 > 0:33:57New windows and doors fitted, outside and inside.
0:33:57 > 0:34:01There was a slope upstairs in both bedrooms,
0:34:01 > 0:34:04approximately five or six inches from one end to the other.
0:34:04 > 0:34:07What I had to do is take up all the floorboards
0:34:07 > 0:34:12and put timber on top of the existing joists.
0:34:12 > 0:34:15It was a massive job, but I did that myself.
0:34:15 > 0:34:17MUSIC: Got My Mojo Working by Muddy Waters
0:34:17 > 0:34:21# Got my mojo working But it just won't work on you... #
0:34:22 > 0:34:25In fact, Chris did most of the work himself,
0:34:25 > 0:34:27just getting professionals in
0:34:27 > 0:34:30for the rewiring, plumbing and central heating.
0:34:30 > 0:34:33He even built the new partition wall in one of the bedrooms,
0:34:33 > 0:34:38allowing him to move the bathroom upstairs. That's good thinking.
0:34:38 > 0:34:41So, how is it working with Dale?
0:34:41 > 0:34:45This project is the first father-son project that we've attempted.
0:34:45 > 0:34:50Erm, we did have some free and frank discussions at times
0:34:50 > 0:34:53about methods of demolishing walls,
0:34:53 > 0:34:56but in the end I just let Dale get on with it.
0:34:57 > 0:35:01Yes, he also helped me fill up a few skips as well.
0:35:01 > 0:35:04- Four skips.- Three.- Four.
0:35:04 > 0:35:08MUSIC: Parents Just Don't Understand by DJ Jazzy Jeff and the Fresh Prince
0:35:08 > 0:35:09# There's no need to argue Parents just don't understand... #
0:35:09 > 0:35:13Oh, don't worry, Dale - I'm sure the help WAS appreciated,
0:35:13 > 0:35:16especially as Chris ran into a bit of bother.
0:35:16 > 0:35:19An unexpected problem we came up against
0:35:19 > 0:35:21was building regulations.
0:35:21 > 0:35:25Because we'd opened up the house downstairs,
0:35:25 > 0:35:28we lost the protected fire escape.
0:35:28 > 0:35:30So I had to put in fire doors
0:35:30 > 0:35:33and fire escapes to the windows upstairs,
0:35:33 > 0:35:36which I wasn't expecting and hadn't budgeted for.
0:35:36 > 0:35:40And there was another planning-regulation issue that came up
0:35:40 > 0:35:42with that extension roof.
0:35:42 > 0:35:44We got a builder up here to look at it,
0:35:44 > 0:35:46and he said it'd be better to actually replace it.
0:35:46 > 0:35:49Buildings Control wanted a flat roof
0:35:49 > 0:35:53to add some strength to the roof structure.
0:35:53 > 0:35:57I didn't, I wanted a bit of height to the room.
0:35:57 > 0:36:00So I came up with a compromise of part-flat and part-sloping,
0:36:00 > 0:36:01and they were quite happy with that.
0:36:01 > 0:36:04Unexpected budgetary items -
0:36:04 > 0:36:05that's not good news.
0:36:05 > 0:36:08I've actually spent nearer 20.
0:36:08 > 0:36:13The extra money has gone into the fact that the plans changed a bit.
0:36:13 > 0:36:16Also the length of time it's taken.
0:36:16 > 0:36:19Having to change plans can cost money and, of course, time.
0:36:19 > 0:36:22As can having to adhere to regulations,
0:36:22 > 0:36:24as Chris has discovered.
0:36:24 > 0:36:27He's gone well past his original 15-week timescale.
0:36:27 > 0:36:32The reason for that was probably the fact I'm new to this game
0:36:32 > 0:36:37and I find that things you estimate are going to take one day
0:36:37 > 0:36:39generally take two or three days to complete.
0:36:40 > 0:36:44Property developing definitely has a steep learning curve.
0:36:44 > 0:36:46Estimating how long things will take
0:36:46 > 0:36:49is a skill that often comes with bitter experience,
0:36:49 > 0:36:51so it's always worth having a good contingency fund.
0:36:51 > 0:36:54Has Chris' total spend of £20,000
0:36:54 > 0:36:57on top of the original £20,000 purchase price been worth it?
0:36:57 > 0:37:01We've asked along two local property experts
0:37:01 > 0:37:03to get their opinion.
0:37:03 > 0:37:05With current market conditions,
0:37:05 > 0:37:09I would recommend an asking price of £57,500.
0:37:09 > 0:37:11If this property was on the market,
0:37:11 > 0:37:15I would expect it to achieve somewhere in the region of £60,000.
0:37:15 > 0:37:18Those evaluations are about right, actually.
0:37:18 > 0:37:21I would be looking to put it on the market at 60,000
0:37:21 > 0:37:24and hope to achieve very near to that.
0:37:24 > 0:37:28If Chris does achieve that top valuation of 60,000,
0:37:28 > 0:37:31he will have made a potential profit of £20,000,
0:37:31 > 0:37:34minus the usual taxes and expenses.
0:37:34 > 0:37:38Plus, with both estate agents estimating a monthly rental
0:37:38 > 0:37:40of £325 per calendar month,
0:37:40 > 0:37:42equating to a possible yield of over 9%,
0:37:42 > 0:37:45this project is something of a success.
0:37:49 > 0:37:52It's been hard work, it's taken a lot longer than I thought,
0:37:52 > 0:37:53and it's cost more money.
0:37:53 > 0:37:56But I've got no regrets about trying it,
0:37:56 > 0:37:57and I'd like to do it again.
0:38:03 > 0:38:06It was back in February 2014 when we first took a trip
0:38:06 > 0:38:10to the outskirts of Chatham in Kent.
0:38:10 > 0:38:13It was here we saw a large, dilapidated lot.
0:38:13 > 0:38:15Essentially two semidetached houses,
0:38:15 > 0:38:19one of which had been converted into two one-bedroom flats.
0:38:20 > 0:38:22The temptation was too much
0:38:22 > 0:38:26for insurance claims adjuster and part-time property developer Robin.
0:38:26 > 0:38:30Having paid £310,000 at auction,
0:38:30 > 0:38:32he hoped, with help from his builder Paul,
0:38:32 > 0:38:36he could do up and refurbish all three properties in just six months.
0:38:39 > 0:38:42But when we returned five months after our first visit,
0:38:42 > 0:38:45well, Robin and Paul were around the halfway mark
0:38:45 > 0:38:48with the three-bed house just about completed.
0:38:50 > 0:38:52Nearly ten months since I first stepped through
0:38:52 > 0:38:56into that somewhat damp and neglected building, we're back.
0:39:01 > 0:39:03The whole building is looking great,
0:39:03 > 0:39:05with new guttering,
0:39:05 > 0:39:07roof tiles and windows.
0:39:07 > 0:39:11It's ready for whatever the Kent weather throws at it.
0:39:11 > 0:39:12And those flats?
0:39:16 > 0:39:20Well, the downstairs one-bed flat is certainly looking good,
0:39:20 > 0:39:22with new flooring, skirting,
0:39:22 > 0:39:24central heating, decor, the lot.
0:39:37 > 0:39:39But, with no layout changes,
0:39:39 > 0:39:42this flat was always the more straightforward of the two.
0:39:42 > 0:39:46Whereas the upstairs one was a completely different proposition.
0:39:58 > 0:40:04We've obviously moved the kitchen from here to over here,
0:40:04 > 0:40:06which is now the new kitchen.
0:40:06 > 0:40:10This has now been turned into a living-kitchen-dining area.
0:40:11 > 0:40:13Well, that really works,
0:40:13 > 0:40:17and the reorganising of the space didn't stop in the kitchen/diner.
0:40:17 > 0:40:22One of the biggest changes was to turn this bathroom into a bedroom,
0:40:22 > 0:40:24and this is what we've done.
0:40:24 > 0:40:26It wasn't very hard to do.
0:40:26 > 0:40:30We took the bath out, the sink out, etc, and here you go.
0:40:32 > 0:40:36The layout changes enable them to make this a two-bedroom flat,
0:40:36 > 0:40:38with the master bedroom having the benefit
0:40:38 > 0:40:40of access onto a small roof terrace.
0:40:40 > 0:40:42Nice!
0:40:46 > 0:40:50And so, finally, this multifaceted project is nearly finished.
0:40:51 > 0:40:54Since your last visit, the house has been sold.
0:40:54 > 0:40:57We got 260,000 for the house,
0:40:57 > 0:41:02which is within a reasonable price bracket.
0:41:02 > 0:41:04That's good news.
0:41:04 > 0:41:10Robin spent £25,000 of his total £40,000 refurbishment on the house.
0:41:10 > 0:41:15So is his budget safe? How much have the flats cost to renovate?
0:41:15 > 0:41:19I think we've spent approximately 22,000 for both flats together.
0:41:19 > 0:41:23It's gone slightly above the original budget,
0:41:23 > 0:41:26but I think it's still within a comfortable frame.
0:41:27 > 0:41:29OK, numbers time.
0:41:29 > 0:41:31Robin bought the lot for £310,000
0:41:31 > 0:41:36and has spent £47,000 renovating the semi and the flats.
0:41:36 > 0:41:40A grand total of £357,000.
0:41:40 > 0:41:44But don't forget he's already sold the house for £260,000.
0:41:44 > 0:41:47So, to give him any profit,
0:41:47 > 0:41:51the flats need to be worth more than £97,000.
0:41:51 > 0:41:56Let's find out what the estate agents think of the flats.
0:41:56 > 0:41:58For the one-bedroom property, I would value that
0:41:58 > 0:42:02in the region of £155,000.
0:42:02 > 0:42:04The ground-floor, one-bedroom flat
0:42:04 > 0:42:07I would value at £140,000-150,000.
0:42:07 > 0:42:09And the two-bed flat upstairs?
0:42:09 > 0:42:12What's that currently worth?
0:42:12 > 0:42:15I would value the two-bedroom property
0:42:15 > 0:42:16in the sales market for £180,000.
0:42:16 > 0:42:19The two-bedroom, first-floor flat,
0:42:19 > 0:42:21because of how unique it is,
0:42:21 > 0:42:24I'd market between £170,000-£180,000.
0:42:24 > 0:42:29And, with a combined valuation of £310,000-£335,000,
0:42:29 > 0:42:34plus the £260,000 he's already got for selling the house,
0:42:34 > 0:42:38Robin potentially is looking at a pre-tax profit
0:42:38 > 0:42:43of between £213,000-£238,000.
0:42:43 > 0:42:47Whoa! So what does he make of that?
0:42:50 > 0:42:55More than I had expected, which is obviously pleasing.
0:42:55 > 0:42:57Yeah, so, going forward,
0:42:57 > 0:43:01this is something that I'm looking to turn into a full-time career -
0:43:01 > 0:43:02property development.
0:43:05 > 0:43:07Well, that's it for today's show,
0:43:07 > 0:43:09but we'll have lots more projects,
0:43:09 > 0:43:12from bedsits to large family homes, for you next time.
0:43:12 > 0:43:14We'll be bringing their stories to you very soon,
0:43:14 > 0:43:16so join us then on Homes Under The Hammer.
0:43:16 > 0:43:17- Goodbye.- Goodbye.