0:00:02 > 0:00:03Welcome to the show.
0:00:03 > 0:00:05With the property market in a state of flux,
0:00:05 > 0:00:07everybody has to make their own decisions.
0:00:07 > 0:00:10You have to do your research and trust your own instincts.
0:00:10 > 0:00:13Yes, and you need to find out what's going on.
0:00:13 > 0:00:18One way you can do that is by going down to your local property auction.
0:00:43 > 0:00:47Well, there are literally thousands of properties coming up
0:00:47 > 0:00:50for auction every month, up and down the country.
0:00:50 > 0:00:53So why not pop along and see what's up for sale?
0:00:53 > 0:00:57Here are the three properties we've got for you on today's show.
0:00:59 > 0:01:03In the London area of Chelsea, every square metre is precious,
0:01:03 > 0:01:05and I mean really precious.
0:01:06 > 0:01:08Crazy.
0:01:09 > 0:01:13Whereas in Dover, do I have to spell out the problems with this property?
0:01:13 > 0:01:17D-O-G, dog hairs everywhere.
0:01:20 > 0:01:21And in Sandbach, Cheshire,
0:01:21 > 0:01:24the issues with this two-bed mid terrace house
0:01:24 > 0:01:25can be easily seen.
0:01:26 > 0:01:28Told ya.
0:01:30 > 0:01:32All of these properties have been sold at auction.
0:01:32 > 0:01:35We'll find out who bought them and what they paid for them
0:01:35 > 0:01:36when they went under the hammer.
0:01:36 > 0:01:38If you're all done...
0:01:42 > 0:01:45Today, I'm in London, SW10.
0:01:45 > 0:01:49One of the most expensive parts of the capital,
0:01:49 > 0:01:52but it doesn't get that reputation for nothing.
0:01:52 > 0:01:57It's really popular with both pop stars and the rich and famous alike.
0:01:57 > 0:02:02A smattering of restaurants, trendy bars, a famous football club.
0:02:02 > 0:02:05Property prices here aren't cheap but oh, what a place to live.
0:02:05 > 0:02:08MUSIC: "Chelsea Dagger" by The Fratellis
0:02:08 > 0:02:11Yes, this is Chelsea, home of the famous King's Road
0:02:11 > 0:02:15and a vast array of shops and restaurants.
0:02:15 > 0:02:18I've walked just a few minutes from Chelsea's Fulham Road
0:02:18 > 0:02:20to a very desirable spot,
0:02:20 > 0:02:23made up of family homes and those attractive mansion blocks.
0:02:23 > 0:02:27And it's a flat in one of these buildings that I'm here to see.
0:02:30 > 0:02:33And you'll never guess who once lived along this street...
0:02:33 > 0:02:35Kylie Minogue.
0:02:35 > 0:02:37Well, the property I'm here to see,
0:02:37 > 0:02:40I don't think it's quite ready for a pop princess yet.
0:02:40 > 0:02:43Lower ground floor flat, had a guide price of £375,000.
0:02:43 > 0:02:45Let's take a look.
0:02:45 > 0:02:47MUSIC: "Spinning Around" by Kylie Minogue
0:02:47 > 0:02:51# I'm spinning around, move out of my way... #
0:02:51 > 0:02:54A dizzying price for a one-bedroom flat?
0:02:54 > 0:02:56Well, this isn't just London,
0:02:56 > 0:02:59it's one of the most expensive parts of it.
0:02:59 > 0:03:02This rather wholesome block was built in 1902
0:03:02 > 0:03:06but it's in pretty good shape and with a 999-year lease,
0:03:06 > 0:03:09this is what's known as a virtual freehold.
0:03:09 > 0:03:11So all good.
0:03:11 > 0:03:13And then...
0:03:13 > 0:03:15Hmm, this entrance is a bit of a let down.
0:03:15 > 0:03:20For a flat guided at £375,000, it's a bit of a trek
0:03:20 > 0:03:24and there might be some security issues to consider.
0:03:24 > 0:03:28On the other hand, your own front door is always a bonus.
0:03:30 > 0:03:35So, what do you get for what is not an inconsiderable amount of money?
0:03:36 > 0:03:38Not much, actually.
0:03:38 > 0:03:41Still, what I see, I do like.
0:03:41 > 0:03:45It looks like it hasn't been played around with or modified much
0:03:45 > 0:03:49over the years so there are some original features to discover.
0:03:49 > 0:03:51I like the floorboards, they'd be lovely stripped back.
0:03:51 > 0:03:53Skirting boards, they're nice, too.
0:03:53 > 0:03:57So that is your living area, that's a good-sized space.
0:03:57 > 0:04:01It all starts to go a bit wrong when you start to head this way
0:04:01 > 0:04:04cos that's your living area, this is your sort of sleeping
0:04:04 > 0:04:07and, you know, facilities, if you like.
0:04:07 > 0:04:09One bedroom, it's not a bad size.
0:04:09 > 0:04:12Head this way, though, that's the kitchen,
0:04:12 > 0:04:15needs some nice units in it, at least there's a window.
0:04:15 > 0:04:17Look at this, disastrous.
0:04:17 > 0:04:20And the bizarre thing is, there is nothing in that cupboard,
0:04:20 > 0:04:21so that's clearly got to go.
0:04:21 > 0:04:23That would certainly open this bit up
0:04:23 > 0:04:26because this is your route to the bathroom.
0:04:26 > 0:04:30Sumptuous, gorgeous, fantastic, marble...
0:04:30 > 0:04:32No.
0:04:32 > 0:04:34Still, what do you expect for a third of a million quid?
0:04:34 > 0:04:36MUSIC: "Money On My Mind" by Sam Smith
0:04:36 > 0:04:39# I don't have money on my mind, money on my mind... #
0:04:39 > 0:04:42Actually, it's even more than a third of a million.
0:04:42 > 0:04:45It's dark, it's dated, it's decidedly damp.
0:04:45 > 0:04:48It gets cramped as you go further back.
0:04:48 > 0:04:51Nope, this is just not working for me
0:04:51 > 0:04:55or, I suspect, for anyone seeking a Chelsea pad.
0:04:55 > 0:04:59This needs to be high spec, hi tech and the cost of that,
0:04:59 > 0:05:02well, that's going to be high, too.
0:05:02 > 0:05:07You really do have to slip into a very different developer mindset
0:05:07 > 0:05:10when you take on a project like this in an area like this
0:05:10 > 0:05:13and the way you think compared to other parts of the country
0:05:13 > 0:05:17basically has to go out the window so it's absolutely vital that
0:05:17 > 0:05:19you make the most of what you've got here.
0:05:19 > 0:05:22One thing you might want to consider is to create a second bedroom.
0:05:22 > 0:05:26Is that possible given what we've got? Well, maybe.
0:05:26 > 0:05:29Maybe there's some taking out of walls you could do,
0:05:29 > 0:05:33you could think laterally about where you put the kitchen.
0:05:33 > 0:05:35Is it worth doing?
0:05:35 > 0:05:38The only way to find that out is to talk to a local estate agent.
0:05:38 > 0:05:41Yes, you do need to do your homework on the likely costs
0:05:41 > 0:05:43and profits of creating a second bedroom
0:05:43 > 0:05:47and get an architect's advice on what's possible with the layout.
0:05:47 > 0:05:50I know it's difficult to imagine how you could get two bedrooms
0:05:50 > 0:05:53on this footprint, but it could mean some big numbers.
0:05:55 > 0:05:59Sometimes it's really hard to get your head around the prices of
0:05:59 > 0:06:04property in certain parts of London, such as where this flat is situated,
0:06:04 > 0:06:06especially if you live in other parts of the country
0:06:06 > 0:06:08outside the capital.
0:06:08 > 0:06:12Because the numbers are just...out there!
0:06:12 > 0:06:17I mean, really, this flat as it stands, guide price £375,000...
0:06:17 > 0:06:20It's 53 square metres.
0:06:20 > 0:06:24So, let's draw a square metre.
0:06:24 > 0:06:27There you go. That's a square metre, roughly.
0:06:27 > 0:06:31That there is worth at the moment...
0:06:31 > 0:06:357,000 quid.
0:06:35 > 0:06:38How bout that? That's bonkers, you might think...
0:06:38 > 0:06:41However, done up,
0:06:41 > 0:06:46this place is worth a cool...
0:06:46 > 0:06:49million pounds.
0:06:49 > 0:06:54You did hear me right, which makes that bit of floor worth...
0:06:56 > 0:07:0019,000 quid.
0:07:03 > 0:07:04Step very gingerly.
0:07:04 > 0:07:06MUSIC: "Bonkers" by Dizzee Rascal
0:07:06 > 0:07:08Crazy.
0:07:08 > 0:07:09# Bonkers... #
0:07:09 > 0:07:13So, is that £375,000 guide price a bargain?
0:07:13 > 0:07:17Possibly, but you will need to spend money renovating it to the
0:07:17 > 0:07:21highest possible standards. Does a local estate agent agree?
0:07:21 > 0:07:24The quality of the properties that it would compete with,
0:07:24 > 0:07:28should it come back to the market, is exceptionally high.
0:07:28 > 0:07:31You would need to put in a very high specification bathroom,
0:07:31 > 0:07:33very high specification kitchen,
0:07:33 > 0:07:37also try to return some of the period features if possible.
0:07:37 > 0:07:40But should this stay as a one-bedroom flat
0:07:40 > 0:07:41or should it be two?
0:07:43 > 0:07:46If I wanted to get the maximum rental yield for the property,
0:07:46 > 0:07:48I would put in another bedroom.
0:07:48 > 0:07:51If I was looking to maximise the capital value,
0:07:51 > 0:07:55I would retain the layout as is, as there will be more demand
0:07:55 > 0:08:00at a higher price for a property with larger rooms and a separate kitchen.
0:08:00 > 0:08:05So are we talking a cool million here on resale as I suspected?
0:08:05 > 0:08:08Once renovated, this property, I imagine,
0:08:08 > 0:08:11would sell for upwards of £1 million.
0:08:11 > 0:08:13Yes. A million or possibly even more.
0:08:13 > 0:08:17Even for London, we're talking big numbers here.
0:08:17 > 0:08:19So what about rental values?
0:08:20 > 0:08:23Once this property is renovated,
0:08:23 > 0:08:28it could rent for between £3,250 and £3,500 per month.
0:08:28 > 0:08:31Well, they say that sometimes you've got to bet big to win big
0:08:31 > 0:08:34and that's certainly the case with this flat.
0:08:34 > 0:08:38Not a lot of room for a lot of money
0:08:38 > 0:08:40but around here, get it right
0:08:40 > 0:08:45and it could earn someone a whole pile of cash.
0:08:45 > 0:08:47Let's find out who should be so lucky, lucky, lucky
0:08:47 > 0:08:50when it went under the hammer.
0:08:50 > 0:08:53Lot 74, I'll start at 400,000 on this.
0:08:53 > 0:08:56400, 405?
0:08:56 > 0:09:00Wow, the auctioneer starts at £25,000 over the guide price.
0:09:00 > 0:09:06So let's rejoin the bidding when it reached £564,000.
0:09:06 > 0:09:08564, 565?
0:09:08 > 0:09:12Coming in, 565, 566?
0:09:12 > 0:09:14567?
0:09:14 > 0:09:16568?
0:09:16 > 0:09:18569?
0:09:18 > 0:09:19570?
0:09:19 > 0:09:21571, he's back in.
0:09:21 > 0:09:23He knows it. 572?
0:09:25 > 0:09:26573?
0:09:26 > 0:09:28574?
0:09:28 > 0:09:29575?
0:09:29 > 0:09:31576?
0:09:31 > 0:09:34576, 577?
0:09:36 > 0:09:39578? 578, 579?
0:09:40 > 0:09:42580?
0:09:42 > 0:09:45580 at the back?
0:09:45 > 0:09:49581? 581 in the front.
0:09:49 > 0:09:51582, 583?
0:09:51 > 0:09:52584?
0:09:55 > 0:09:56585?
0:09:56 > 0:09:58586?
0:09:58 > 0:09:59587?
0:10:01 > 0:10:04586,000, first time.
0:10:04 > 0:10:06Second time.
0:10:06 > 0:10:08Third and last time, have you all done?
0:10:10 > 0:10:11586,000, sold. Well done.
0:10:11 > 0:10:15A handshake between business partners Ian and Alex
0:10:15 > 0:10:17on that final bid of £586,000.
0:10:19 > 0:10:23That's a rather gobsmacking £211,000 over the guide price
0:10:23 > 0:10:25for a one-bedroom flat.
0:10:27 > 0:10:30Alex, who works in IT, met us back at the property
0:10:30 > 0:10:32to tell us why he bid big.
0:10:35 > 0:10:40- Alex, great to meet you.- Great to meet you.- Congratulations.- Thank you.
0:10:40 > 0:10:42So, wow. Lot of money.
0:10:42 > 0:10:45Yes. Just a tad, yes.
0:10:45 > 0:10:47570,000 was my ceiling.
0:10:47 > 0:10:48Oh, right. OK.
0:10:48 > 0:10:50But you still happy to get it?
0:10:50 > 0:10:52Yes, I'm really happy with this.
0:10:52 > 0:10:55You know, sometimes you get a good feeling about a project
0:10:55 > 0:10:58and for me, I've got a good feeling about this project.
0:10:58 > 0:11:01I really like the shape of the flat, I love the location.
0:11:01 > 0:11:04The building has been really, really well maintained as well,
0:11:04 > 0:11:07it's just gone through quite an extensive refurbishment programme.
0:11:07 > 0:11:10- So it ticks a lot of boxes for me. - Why have you bought it?
0:11:10 > 0:11:13Is it for you or to rent out or what?
0:11:13 > 0:11:16My intention is for me to redevelop this,
0:11:16 > 0:11:19convert it into a two-bedroomed space,
0:11:19 > 0:11:22I can kind of squeeze that out of the floor space that we have
0:11:22 > 0:11:25and to move into it and enjoy the fruits of my labour.
0:11:25 > 0:11:27Oh, great.
0:11:27 > 0:11:31Alex may have gone past his ceiling bid by £16,000
0:11:31 > 0:11:34but that's not even a square metre of this flat.
0:11:35 > 0:11:38How is he going to reconfigure it?
0:11:38 > 0:11:39At the moment, there is
0:11:39 > 0:11:43quite a long corridor down the rear of the rear half of the flat
0:11:43 > 0:11:45and I think that's a bit of wasted space.
0:11:45 > 0:11:50So we are just going to adjust some of the interior corridor wall
0:11:50 > 0:11:53and the corners of the floor space which currently is hallway
0:11:53 > 0:11:55will be turned into bathrooms.
0:11:55 > 0:11:58And just eat away into some of the space we've got
0:11:58 > 0:12:01in the current bedroom to give some of that into the living area
0:12:01 > 0:12:03and then use the current kitchen and bathroom to convert
0:12:03 > 0:12:06that into a big sort of master bedroom at the back of the property.
0:12:06 > 0:12:07And where will the kitchen be?
0:12:07 > 0:12:11The kitchen will be integrated into the living area as you come in
0:12:11 > 0:12:14so the current square room will become more of an L-shaped room.
0:12:14 > 0:12:18So in fact, that corner there, some of that will be given into the
0:12:18 > 0:12:23kitchen space to create the typical kind of open-plan living area.
0:12:23 > 0:12:26Not only does Alex plan to make this a two-bedroom flat,
0:12:26 > 0:12:29he wants to squeeze in two bathrooms as well.
0:12:29 > 0:12:31Good luck with that one(!)
0:12:31 > 0:12:34He has a £60,000 budget and a ten-week timescale
0:12:34 > 0:12:37and he plans to give it that high spec feel.
0:12:37 > 0:12:40So his university studies in Landscape, Architecture
0:12:40 > 0:12:42and Design will be handy.
0:12:44 > 0:12:47What does he hope the flat could be worth once it's done?
0:12:48 > 0:12:53I think a conservative estimate could be £700,000 plus,
0:12:53 > 0:12:55to 750,000.
0:12:55 > 0:12:57Well, the agent was quoting numbers a lot higher than that,
0:12:57 > 0:13:01- just so you know. - OK, that's good news.
0:13:01 > 0:13:05Well, congratulations. Good luck, we will follow this with much interest.
0:13:05 > 0:13:08- Thank you.- Nice to meet you.- Cheers.
0:13:10 > 0:13:13So Alex's paying way over the guide price for this little Chelsea flat.
0:13:13 > 0:13:16However, I think he's got some great ideas for it
0:13:16 > 0:13:19and a realistic budget and I think he might be being a little bit
0:13:19 > 0:13:22conservative about what he might make out of it.
0:13:22 > 0:13:27You can find out and re-enter the slightly surreal world
0:13:27 > 0:13:29of London property prices later in the show.
0:13:33 > 0:13:35MUSIC: "River, Sea, Ocean" by Badly Drawn Boy
0:13:35 > 0:13:38Well, leaving those eye-watering London prices behind,
0:13:38 > 0:13:42I'm off to dip my toe in a more sedate, calmer part of the country.
0:13:44 > 0:13:49# Quality sea, makes it to the ocean
0:13:49 > 0:13:52Dover, in Kent, is often seen as the gateway
0:13:52 > 0:13:54to mainland Europe and beyond.
0:13:54 > 0:13:58# Far away, far away... #
0:13:58 > 0:14:01But the town itself isn't without its own attractions.
0:14:01 > 0:14:03There's the famous white cliffs, of course,
0:14:03 > 0:14:06and the castle which presides over the town.
0:14:07 > 0:14:12Look at that fantastic view and that is Dover Castle,
0:14:12 > 0:14:17scene of many turbulent times throughout the centuries.
0:14:17 > 0:14:20Well, these days of course, it's the cry of seagulls
0:14:20 > 0:14:23rather than battle cries that ring out around the town.
0:14:23 > 0:14:25But competition is still fierce
0:14:25 > 0:14:28when it comes to finding affordable accommodation.
0:14:28 > 0:14:30Just a ten minute walk from the high street
0:14:30 > 0:14:33and only seven minutes' walk from the train station
0:14:33 > 0:14:36is the property I'm here to see.
0:14:36 > 0:14:41Now, it was on at the auction for a guide price of £80,000 to £84,000
0:14:41 > 0:14:44and it's this three-storey mid terrace property.
0:14:44 > 0:14:46I'm going to go inside and have a look.
0:14:49 > 0:14:52Now, these little cottages were built around 100 years ago
0:14:52 > 0:14:54for the dock workers in Dover.
0:14:54 > 0:14:58They're solid, they're well-built, a great little investment here.
0:14:58 > 0:15:02Although, I'm not sure this partition has always been there.
0:15:02 > 0:15:05In fact, it really narrows the little lounge here.
0:15:05 > 0:15:08I'd probably get rid of this and open the space up.
0:15:08 > 0:15:11It's got a nice fireplace which could be a feature
0:15:11 > 0:15:14and what I love are these wide, chunky floorboards
0:15:14 > 0:15:18and they run right the way through the whole property.
0:15:18 > 0:15:21Now the floor space down here is not ideal because
0:15:21 > 0:15:24there's the bathroom and it's huge,
0:15:24 > 0:15:27I mean, it's far too big for a bathroom.
0:15:27 > 0:15:29It's a real waste of space.
0:15:29 > 0:15:33In fact, I think in a former life, that may have been the kitchen.
0:15:33 > 0:15:36Not only is it too big as a bathroom...
0:15:36 > 0:15:37it's avocado!
0:15:37 > 0:15:41Well, bits of it are. A two-tone suite?
0:15:41 > 0:15:42Unusual, to say the least.
0:15:42 > 0:15:45Anyway, onwards and upwards.
0:15:45 > 0:15:47So, let's have a look around upstairs.
0:15:47 > 0:15:50No bathroom, as I suspected.
0:15:50 > 0:15:53Good-sized room there, second bedroom through here.
0:15:53 > 0:15:56I think the previous owner might have had quite a lot of animals
0:15:56 > 0:15:58because D-O-G,
0:15:58 > 0:16:01dog hairs everywhere!
0:16:01 > 0:16:05So, this carpet needs to be scooped up and thrown in the skip.
0:16:05 > 0:16:08But it has the bones of a good room, lovely window there, could be
0:16:08 > 0:16:12replaced with a double-glazed unit, but that is a great view over Dover.
0:16:12 > 0:16:14MUSIC: "Point Of View" by DB Boulevard
0:16:14 > 0:16:17# I see birds and trees
0:16:17 > 0:16:21# All the flowers of the world
0:16:21 > 0:16:24# So beautiful
0:16:24 > 0:16:26# Won't you come with me?... #
0:16:26 > 0:16:29Oh, it's a great view looking out,
0:16:29 > 0:16:31but perhaps not so great looking in.
0:16:31 > 0:16:33The two bedrooms are OK
0:16:33 > 0:16:36but obviously need to be completely refurbished
0:16:36 > 0:16:38and stripped of all traces of dog!
0:16:42 > 0:16:45Where's the kitchen, I hear you ask?
0:16:45 > 0:16:47Well, that's on the lower ground floor,
0:16:47 > 0:16:49along with another reception room.
0:16:53 > 0:16:55The kitchen is a good size and it leads out to the garden
0:16:55 > 0:16:59where, once again, the views aren't half bad.
0:17:02 > 0:17:03But I'm beginning to wonder
0:17:03 > 0:17:07whether I'm looking at this house in the right way.
0:17:07 > 0:17:09# Can't you see
0:17:11 > 0:17:13# Life's easy
0:17:15 > 0:17:18# If you consider things
0:17:18 > 0:17:21# From another point of view?... #
0:17:23 > 0:17:27Well, there's a lot of house here over these three storeys
0:17:27 > 0:17:30and it wouldn't take too much effort to turn this
0:17:30 > 0:17:33back into a lovely family home.
0:17:33 > 0:17:38But if you're looking to make the maximum return on your investment,
0:17:38 > 0:17:41well, this is where it gets interesting.
0:17:41 > 0:17:44Because this property comes with full planning permission from
0:17:44 > 0:17:49Dover District Council to convert this whole place into two flats.
0:17:49 > 0:17:51Now, that is a bonus.
0:17:52 > 0:17:55And the two flats that have been approved are for a two-bedroom flat
0:17:55 > 0:17:59on the upper two floors and a one-bedroom self-contained
0:17:59 > 0:18:01or studio flat on the ground floor.
0:18:01 > 0:18:04With a separate entrance already in place,
0:18:04 > 0:18:07you can see that this conversion wouldn't be that tricky.
0:18:11 > 0:18:14But are two flats instead of a good-sized family home
0:18:14 > 0:18:17really what the local market needs?
0:18:18 > 0:18:20What does an estate agent think?
0:18:21 > 0:18:23If you're looking to the future for this property,
0:18:23 > 0:18:25it depends what you're going to do with it,
0:18:25 > 0:18:27either reselling it or letting it.
0:18:27 > 0:18:29If you're letting it,
0:18:29 > 0:18:32you'll get a better income from the two apartments.
0:18:32 > 0:18:33If you're going to resell it,
0:18:33 > 0:18:37- there's probably a broader market for it as a house.- Interesting.
0:18:37 > 0:18:40I guess ultimately it comes down to the numbers on a property
0:18:40 > 0:18:43that was guided at £80,000 to £84,000.
0:18:45 > 0:18:47This house, when renovated,
0:18:47 > 0:18:51will achieve something in the region of £100,000, maybe £105,000.
0:18:51 > 0:18:54If this were converted into two flats,
0:18:54 > 0:18:59the values of the two apartments are likely to be £40,000 to £45,000
0:18:59 > 0:19:04for a one-bedroom and £50,000 to £60,000 for a two-bedroom flat.
0:19:05 > 0:19:09So resale with build cost may not necessarily favour
0:19:09 > 0:19:11converting to flats.
0:19:11 > 0:19:14Rental returns, though, might.
0:19:14 > 0:19:17The value of this if it were let as a two-bedroom house
0:19:17 > 0:19:19would be £500 per calendar month.
0:19:19 > 0:19:24I think the one-bedroom flat on the lower ground floor would
0:19:24 > 0:19:26achieve £400 per calendar month
0:19:26 > 0:19:30and the upper floor two-bedroom flat would be
0:19:30 > 0:19:33£450 to £500 per calendar month.
0:19:33 > 0:19:37Yup, that means you could almost double your monthly rental income
0:19:37 > 0:19:40with two flats here, so there's a lot to consider.
0:19:41 > 0:19:45So a sizable three-storey house with that very attractive option
0:19:45 > 0:19:48of turning it into two well thought-out flats...
0:19:48 > 0:19:52On the one hand, it could be a lovely family home,
0:19:52 > 0:19:57but on the other, the potential for maximum return on your investment.
0:19:57 > 0:19:59Let's find out who fancied it and what they decided to do
0:19:59 > 0:20:01when it went under the hammer.
0:20:03 > 0:20:06Over the page, then, to the last two lots of the day.
0:20:06 > 0:20:09Lot 82 is a house for improvement
0:20:09 > 0:20:11with approval for a pair of flats for conversion.
0:20:11 > 0:20:14Where do you want to start me, then? 70,000 to get me on my way.
0:20:14 > 0:20:16At 70,000, it would be a steal.
0:20:16 > 0:20:1870,000 I'm in. At 70,000.
0:20:18 > 0:20:20And 72 now...
0:20:20 > 0:20:2372, I've got. And 74, 76?
0:20:23 > 0:20:2676, and 78? 78, and 80?
0:20:27 > 0:20:2979.
0:20:29 > 0:20:3080, if you like...
0:20:30 > 0:20:31You heard him say it.
0:20:31 > 0:20:33And 81? 81, 82?
0:20:33 > 0:20:3683? 84. 84, 85?
0:20:36 > 0:20:3886?
0:20:38 > 0:20:4087? 87,000?
0:20:40 > 0:20:44At 86, then, the first time at 86,000, sitting in front of me.
0:20:44 > 0:20:4686,000 for the second.
0:20:46 > 0:20:4886,000 third and final time.
0:20:48 > 0:20:50If you're sure you're all done, it's going to be sold...
0:20:50 > 0:20:53- GAVEL SLAMS - Well done, at 86,000.
0:20:53 > 0:20:55And so, for £86,000,
0:20:55 > 0:20:59the successful bidder for the three-storey Dover house is Debbie.
0:21:00 > 0:21:03Now, Debbie is a familiar face on the show, having already bought
0:21:03 > 0:21:06and renovated several properties in the Kent region.
0:21:09 > 0:21:13- Debbie, how are you?- I'm great, thanks. You OK?- Well, I'm great.
0:21:13 > 0:21:15I'm just quite excited that, you know,
0:21:15 > 0:21:18you've got a lot of house here for what you paid at auction.
0:21:18 > 0:21:21Yes, I know. We were really pleased with it.
0:21:21 > 0:21:24The three-storey building and it's quite a solid building,
0:21:24 > 0:21:26not in a total state of disrepair,
0:21:26 > 0:21:29for 86,000, so yeah, it was a good price.
0:21:29 > 0:21:32So, describe and tell me what it is you do,
0:21:32 > 0:21:35because you've not bought this for yourself, you're an investor.
0:21:35 > 0:21:36That's right.
0:21:36 > 0:21:40I actually run an auction buying service for clients
0:21:40 > 0:21:43that are mainly abroad, in Singapore and Hong Kong,
0:21:43 > 0:21:46who would like to invest in property and they'd like to refurbish
0:21:46 > 0:21:50properties and build, but don't have the time to do it themselves.
0:21:50 > 0:21:52So that's where I come in.
0:21:52 > 0:21:55I do all the research on the auction plots,
0:21:55 > 0:21:58find out which ones are likely to give us
0:21:58 > 0:22:01the highest return, basically, and then I bid for them
0:22:01 > 0:22:04and get the projects done on behalf of the investors.
0:22:04 > 0:22:07So what was it about this house in particular that you thought
0:22:07 > 0:22:08was worthwhile to bid on?
0:22:08 > 0:22:12This one's got planning permission for conversion to two flats which,
0:22:12 > 0:22:14you know, makes it much more attractive.
0:22:14 > 0:22:16So many developers that I meet go,
0:22:16 > 0:22:18"Yeah, yeah, got the plans, rubbish, don't want to use those.
0:22:18 > 0:22:21"We're going to change it, we're going to put an extra room in here,
0:22:21 > 0:22:23"build an extension out there..."
0:22:23 > 0:22:25So, you know, are you happy with those plans?
0:22:25 > 0:22:27Well, funny you should say that.
0:22:27 > 0:22:32We are half thinking of doing a small extension from the outside store,
0:22:32 > 0:22:33across the other wall there,
0:22:33 > 0:22:36which would give us a much bigger kitchen,
0:22:36 > 0:22:39so we could then push the units back to that wall and this would
0:22:39 > 0:22:42become a lounge and kitchen in one,
0:22:42 > 0:22:45with the bathroom off behind us.
0:22:45 > 0:22:48- So in terms of space, it really would work.- Yeah.
0:22:48 > 0:22:50But it's the planning and it's the timing and it's all of that
0:22:50 > 0:22:53that's going to not allow you to crack on with this project.
0:22:53 > 0:22:55Well, that's what we've got to add into the equation.
0:22:55 > 0:22:57MUSIC: "Living By Numbers" by New Musik
0:22:57 > 0:23:00# Living by numbers
0:23:00 > 0:23:02# Living by numbers now... #
0:23:05 > 0:23:08So, Debbie has a few issues to weigh up but the key for her,
0:23:08 > 0:23:13really, is the maths and getting the maximum return for her investors.
0:23:13 > 0:23:16OK, so let's talk about what you are actually going to be doing
0:23:16 > 0:23:18in terms of work to this property.
0:23:18 > 0:23:21I mean, as it is a conversion, obviously most things that you
0:23:21 > 0:23:23see are going to be ripped out.
0:23:23 > 0:23:24So it'll go back to a shell,
0:23:24 > 0:23:28although the windows at the front will stay and the door at the front.
0:23:28 > 0:23:31All new windows at the back and all new kitchen units.
0:23:31 > 0:23:35We'll be taking the stairs out that are just behind us as well.
0:23:35 > 0:23:36So taking the stairs out
0:23:36 > 0:23:39because obviously there's no need for them because you're going
0:23:39 > 0:23:42- to use this ground floor entrance as the entrance.- That's right, yeah.
0:23:42 > 0:23:45Well, Debbie certainly seems to be on top of the layout changes,
0:23:45 > 0:23:48but she still has to check out whether the damp in the front room
0:23:48 > 0:23:53needs remedial work and that's why she's commissioned a damp report.
0:23:53 > 0:23:56She's pretty confident she won't need to put a whole tanking
0:23:56 > 0:23:59or waterproof system in, but if that was needed,
0:23:59 > 0:24:03that wouldn't be good for the numbers or the timescale.
0:24:03 > 0:24:05So come on, Debora, how long is it going to take to get
0:24:05 > 0:24:08the project up and running and complete?
0:24:08 > 0:24:10- I think it'll be finished within three to four months.- Really.
0:24:10 > 0:24:13Yeah, if we don't go for planning, then we can get...
0:24:13 > 0:24:16The builders are ready to get going as soon as we've got the damp report
0:24:16 > 0:24:19back and we know what we've got to do there,
0:24:19 > 0:24:22- they'll get in here and get this one done.- What's the budget?
0:24:22 > 0:24:24We've got 45,000 for this one.
0:24:24 > 0:24:27Well, Debora, it's going to be really exciting to see how
0:24:27 > 0:24:29- this one turns out.- Yes.
0:24:29 > 0:24:31And are you going to do the extension, yes or no?
0:24:31 > 0:24:34- Well, we'll soon... - We'll see when we come back?- Yes.
0:24:34 > 0:24:36- Good luck.- Thank you.- Thank you.
0:24:38 > 0:24:40Well, there's someone who really knows what she's doing.
0:24:40 > 0:24:43She's done her homework and she's totted up the figures.
0:24:43 > 0:24:47But Debbie still has to receive that damp report and she still has
0:24:47 > 0:24:51to work out whether she's going for an extension out here or not.
0:24:51 > 0:24:54You can find out how she gets on later on in the programme.
0:24:56 > 0:24:59Coming up, in Sandbach, Cheshire, I look for a simple solution.
0:24:59 > 0:25:01Properties aren't all that complicated.
0:25:01 > 0:25:03There's usually some fairly basic reason
0:25:03 > 0:25:05why that kind of stuff is happening.
0:25:06 > 0:25:10Back in Dover, it seems Debbie's definitely got the development bug.
0:25:10 > 0:25:13Well, I bought two more at the beginning of this week.
0:25:13 > 0:25:16I'm a glutton for punishment.
0:25:20 > 0:25:22But first, we're back in SW10
0:25:22 > 0:25:26and the hot property London market that is Chelsea.
0:25:26 > 0:25:29And it was here that we saw a handsome mansion block
0:25:29 > 0:25:32that contained a less than handsome one-bedroomed flat.
0:25:36 > 0:25:40It was bought by Alex for £586,000,
0:25:40 > 0:25:44£211,000 over the guide price.
0:25:44 > 0:25:46- A lot of money.- Yes.
0:25:46 > 0:25:48Just a tad, yes.
0:25:48 > 0:25:52- But you're still happy to get it? - Yes, I'm really happy with this.
0:25:52 > 0:25:55You know, sometimes you get a good feeling about a project.
0:25:55 > 0:25:58I really like the shape of the flat, I love the location
0:25:58 > 0:26:00so it ticks a lot of boxes for me.
0:26:00 > 0:26:04Well, I agree the location is a tick as far as box-ticking goes,
0:26:04 > 0:26:08but for the rest, well, it was rather boxy.
0:26:08 > 0:26:11But Alex didn't seem in the least discouraged.
0:26:17 > 0:26:20My intention is for me to redevelop this,
0:26:20 > 0:26:23convert it into a two-bedroom space cos I think
0:26:23 > 0:26:26I can kind of squeeze that out of the floor space that we have
0:26:26 > 0:26:30and to move into it and enjoy the fruits of my labour.
0:26:30 > 0:26:31Oh, great.
0:26:34 > 0:26:36With a budget of £60,000,
0:26:36 > 0:26:40Alex was aiming to create his Chelsea pad in eight to ten weeks.
0:26:40 > 0:26:42It was five months later when we returned.
0:26:42 > 0:26:45MUSIC: "Imagination" by Belouis Some
0:26:45 > 0:26:49# Imagination could make a man out of you... #
0:26:49 > 0:26:51Wow, look at that.
0:26:51 > 0:26:55# Imagination could make me love you, too
0:26:55 > 0:27:01# Imagination is all I want from you... #
0:27:01 > 0:27:03This basement flat is now every inch
0:27:03 > 0:27:06the high-end Chelsea pad it needed to be.
0:27:06 > 0:27:10And every inch of the place has been put to work.
0:27:10 > 0:27:13Where the corridor used to be is a high spec kitchen.
0:27:14 > 0:27:18The bedroom, which was dark and dingy, is now bright and welcoming.
0:27:19 > 0:27:22And it's no longer a one-bedroom flat.
0:27:22 > 0:27:25Alex has managed to use that awkward corridor space to create
0:27:25 > 0:27:28a second bedroom and a shower room.
0:27:28 > 0:27:33However, hang on. What happened to his plans for an en-suite?
0:27:33 > 0:27:36In the initial plans for this flat,
0:27:36 > 0:27:41I wanted to squeeze in two bedrooms and a bathroom and an en-suite.
0:27:41 > 0:27:44Looking at the place closely and the size
0:27:44 > 0:27:48and talking with some local agents, I was advised against that
0:27:48 > 0:27:52so I stuck with a two-bedroom layout with just one bathroom, which
0:27:52 > 0:27:56allowed a bit more space to be carved up and given to the living space.
0:27:59 > 0:28:01I think it was a wise decision.
0:28:01 > 0:28:03And Alex considered all his options
0:28:03 > 0:28:05when it came to using the space wisely.
0:28:07 > 0:28:11One of the things I decided to try was underfloor heating.
0:28:11 > 0:28:14I wanted to make use of floor space as much as possible
0:28:14 > 0:28:17and do away with fixtures and fittings
0:28:17 > 0:28:20so that's something that's worked out quite well.
0:28:20 > 0:28:23And one of the things that I was quite happy with is
0:28:23 > 0:28:26the use of the original hallway, widening that out a bit
0:28:26 > 0:28:29and turning that into a really functional kitchen.
0:28:29 > 0:28:33I wanted to make sure that it was bright and usable.
0:28:35 > 0:28:38Well, I think that objective has been achieved.
0:28:38 > 0:28:42The kitchen has the high spec detail it needed.
0:28:42 > 0:28:45And that attention to detail, like the lighting
0:28:45 > 0:28:49and the new sash windows, all give the flat an expensive feel.
0:28:49 > 0:28:53Does this mean that his £60,000 budget is a distant memory?
0:28:53 > 0:28:58We ended up spending £55,600.
0:28:58 > 0:29:02I am impressed that he managed to achieve this finish for that budget.
0:29:02 > 0:29:06So far, he's spent just under £642,000
0:29:06 > 0:29:08creating this two-bedroom flat.
0:29:08 > 0:29:10Will two agents think he's done enough to make
0:29:10 > 0:29:13a splash on the demanding Chelsea property market?
0:29:13 > 0:29:14Wow.
0:29:14 > 0:29:16When I saw this property the first time around,
0:29:16 > 0:29:19it had so much potential
0:29:19 > 0:29:22but now it's actually been realised.
0:29:22 > 0:29:25The property itself, the change of the layout,
0:29:25 > 0:29:28the attention to detail, it's absolutely stunning.
0:29:28 > 0:29:30The first impressions are extremely good,
0:29:30 > 0:29:32it's really got the wow factor.
0:29:32 > 0:29:36There's little touches like the light in the bathroom,
0:29:36 > 0:29:41very good cupboard space which often is missing, unfortunately...
0:29:41 > 0:29:43So, it looks like it has absolutely everything.
0:29:43 > 0:29:47My particular favourite is the kitchen area and in particular,
0:29:47 > 0:29:48the granite worktop.
0:29:48 > 0:29:52I love the way that you get the light sparkling throughout the stone.
0:29:52 > 0:29:53Also, just the attention to detail,
0:29:53 > 0:29:57the plants just work really well, and the whole area is just beautiful.
0:29:57 > 0:29:59Sounds like a thumbs up to me.
0:29:59 > 0:30:02So will the agents' enthusiasm for this property
0:30:02 > 0:30:04be reflected in the retail figures?
0:30:04 > 0:30:07For rental, I think this property could achieve between
0:30:07 > 0:30:12£2,850 to £3,000 per calendar month.
0:30:12 > 0:30:18I would expect a rental price of £3,000 to £3,600 per calendar month.
0:30:18 > 0:30:22That would mean a yield of between 6% and 7%.
0:30:22 > 0:30:26As Alex is intending to live in the flat, he will, I'm sure,
0:30:26 > 0:30:29be more interested in the resale figures.
0:30:29 > 0:30:34We would expect a sale price of £925,000.
0:30:34 > 0:30:38For sale, I would value this property around the £1 million mark.
0:30:38 > 0:30:41That means a potential pre-tax profit
0:30:41 > 0:30:47of a whopping £283,000 to £358,000.
0:30:47 > 0:30:50I think the £1 million mark is very generous.
0:30:50 > 0:30:53I personally think it's more in the mid-900,000.
0:31:02 > 0:31:05With rewards of that size on offer, does Alex have any advice
0:31:05 > 0:31:09for potential buyers at property auctions?
0:31:09 > 0:31:11The key thing is, I suppose, to
0:31:11 > 0:31:14understand the area or the market that you're buying the property for.
0:31:14 > 0:31:17The tricky thing with auctions is you always come away thinking
0:31:17 > 0:31:20you've paid the highest price in the room, which you have,
0:31:20 > 0:31:23so you don't really feel like you've got a bargain, as such.
0:31:23 > 0:31:26But in hindsight, in this particular scenario,
0:31:26 > 0:31:29I'm quite pleased with having secured this property.
0:31:32 > 0:31:37Now, we leave behind cool, urban pads and the buzz of the city
0:31:37 > 0:31:41and visit a slightly more tranquil setting.
0:31:41 > 0:31:43I'm in the handsome and upmarket
0:31:43 > 0:31:47market town of Sandbach, in south east Cheshire.
0:31:47 > 0:31:50A lovely spot, what's known as a dormitory town.
0:31:50 > 0:31:53Basically, people sleep here and then get easy access
0:31:53 > 0:31:57to the motorway network to places like Manchester,
0:31:57 > 0:31:58Stoke-on-Trent and Crewe.
0:31:58 > 0:32:00You know what? It is lovely.
0:32:01 > 0:32:04As well as the Elizabethan market,
0:32:04 > 0:32:07the town square also boasts two Anglo-Saxon crosses
0:32:07 > 0:32:10dating from the 9th century,
0:32:10 > 0:32:12depicting dragons, amongst other things.
0:32:12 > 0:32:14Fascinating.
0:32:14 > 0:32:17So what property delights bring me here today?
0:32:17 > 0:32:21Well, on this road, not too far from the town centre,
0:32:21 > 0:32:24is this two-bedroomed mid terrace
0:32:24 > 0:32:27at a guide price of £65,000.
0:32:27 > 0:32:31Looks a little bit grubby on the outside but you know what they say?
0:32:31 > 0:32:33Sometimes it's really good to go from the worst house
0:32:33 > 0:32:35on a good street.
0:32:35 > 0:32:38And as streets go, it's a busy one.
0:32:38 > 0:32:40It's a main route to the town centre.
0:32:40 > 0:32:42That's not going to be for everyone.
0:32:42 > 0:32:46So, so far, the outside doesn't exactly excite me.
0:32:46 > 0:32:48Here's hoping the inside is a bit better.
0:32:49 > 0:32:52So, what've we got? Oh, hmm.
0:32:52 > 0:32:56Kind of a tiled floor, not the most welcoming and warming
0:32:56 > 0:32:58and it does bring up to question all sorts of damp issues
0:32:58 > 0:33:00which you'd want to check out.
0:33:00 > 0:33:03Big bay window which is nice, although it is looking out
0:33:03 > 0:33:07onto the road so double glazing definitely necessary.
0:33:07 > 0:33:12But look at the angle over there. That wall is sort of...huh.
0:33:12 > 0:33:15Hmm, it's going to make fitting furniture kind of fun(!)
0:33:15 > 0:33:17But that's the good bit, actually,
0:33:17 > 0:33:20cos come towards the rear of the property here and a tiny kitchen,
0:33:20 > 0:33:24again with that angled wall, an under-stairs cupboard
0:33:24 > 0:33:27and then stairs up to the bedrooms.
0:33:27 > 0:33:32I can't quite put my finger on what this room would be.
0:33:32 > 0:33:34What it is at the moment is access to the rear.
0:33:36 > 0:33:40Laid mostly to...well, concrete, at the moment.
0:33:42 > 0:33:46The always comedic outside toilet,
0:33:46 > 0:33:49very useful if you're doing some gardening or here's an idea,
0:33:49 > 0:33:51what do we think about extending that
0:33:51 > 0:33:54building across the width of the house here to create much
0:33:54 > 0:33:58needed space in that kitchen area, or this area?
0:33:58 > 0:33:59Single story extension,
0:33:59 > 0:34:02you could do it within permitted development rules.
0:34:02 > 0:34:06You'd have to check, you have got a few issues here because there's
0:34:06 > 0:34:09obviously some drainage, sewerage or whatever, flowing across here.
0:34:09 > 0:34:12So you'd have to factor that into your plans.
0:34:12 > 0:34:14But other than that, I think it would be a way
0:34:14 > 0:34:18of sorting out what is actually a bit of a iffy downstairs.
0:34:18 > 0:34:20Let's hope the upstairs is a bit better.
0:34:21 > 0:34:23There's a lot of concrete here,
0:34:23 > 0:34:26on the ground and the boundary walls, too.
0:34:26 > 0:34:28I really do want to take a jackhammer to it.
0:34:28 > 0:34:30MUSIC: "Break Up The Concrete" by Pretenders
0:34:30 > 0:34:34# Break up the concrete, break up the concrete... #
0:34:34 > 0:34:37It's not pretty and neither is the paintwork.
0:34:37 > 0:34:38And then, weirdly,
0:34:38 > 0:34:41there is no boundary between the next door house.
0:34:41 > 0:34:43It's all a bit of a mess, really.
0:34:43 > 0:34:47I'm hoping that outdoor loo isn't the only toilet in the house,
0:34:47 > 0:34:51although the way things are shaping up, I wouldn't be surprised.
0:34:51 > 0:34:53This house needs a lot of attention,
0:34:53 > 0:34:55not least because of the signs of damp.
0:34:57 > 0:34:59Useful to have that window there,
0:34:59 > 0:35:01throws lots of light onto the stairs which is good
0:35:01 > 0:35:04and I like the floorboards, they'd be nice stripped back.
0:35:04 > 0:35:07Although, whenever you strip back floorboards on an upstairs floor,
0:35:07 > 0:35:09you've got to consider the people downstairs cos
0:35:09 > 0:35:12lots of clumping around isn't good.
0:35:12 > 0:35:14But this is looking positive.
0:35:14 > 0:35:17You've got the bathroom and loo here, so thankfully it's not
0:35:17 > 0:35:20just the only that's outside that you have to cope with.
0:35:20 > 0:35:22Looks to be in OK condition,
0:35:22 > 0:35:25but it's in the right place, which is good.
0:35:25 > 0:35:29Nice sized front bedroom, smaller bedroom towards the back
0:35:29 > 0:35:32but compared to the downstairs, the upstairs is actually...
0:35:34 > 0:35:36..a delight.
0:35:36 > 0:35:39Upstairs is a delight, downstairs...a nightmare.
0:35:39 > 0:35:42But at least I'm beginning to see some potential.
0:35:42 > 0:35:44At least there's a bathroom.
0:35:44 > 0:35:48Not my choice of colour, but it's a fair size.
0:35:48 > 0:35:51But on the downside, there are definitely more signs of damp.
0:35:52 > 0:35:56Well, here in the main bedroom, more of those crazy angles but I'm more
0:35:56 > 0:35:59concerned about some serious...
0:35:59 > 0:36:04signs of damp on this front wall here.
0:36:04 > 0:36:06Now, properties aren't that complicated.
0:36:06 > 0:36:08There's usually some fairly basic reason
0:36:08 > 0:36:10why that kind of stuff is happening.
0:36:10 > 0:36:13It must either be something to do with the roof
0:36:13 > 0:36:16or penetrating damp coming through the wall.
0:36:16 > 0:36:17Let's explore.
0:36:19 > 0:36:21Thought so. Look at that.
0:36:21 > 0:36:24At the end of the guttering there, you can see there's supposed
0:36:24 > 0:36:27to be a pipe that links the gutter to the downspout.
0:36:27 > 0:36:31It's missing, which means that the water will basically just pour onto
0:36:31 > 0:36:36this wall here and after a period of time, it'll just penetrate through.
0:36:36 > 0:36:39There you go, open and shut case.
0:36:39 > 0:36:41Told ya.
0:36:45 > 0:36:48Unfortunately, this property has been lying empty for some years
0:36:48 > 0:36:52so no-one's been able to deal with the general maintenance.
0:36:52 > 0:36:55This is the sort of thing that costs hardly anything to keep
0:36:55 > 0:36:59maintained but if ignored, can lead to expensive repairs.
0:37:01 > 0:37:04What does a local estate agent think of this house
0:37:04 > 0:37:07that was guided at £65,000?
0:37:07 > 0:37:12The layout is interesting. It needs quite a lot of work doing to it.
0:37:12 > 0:37:15The property needs a general update, typically new kitchen,
0:37:15 > 0:37:18new bathroom and general decoration throughout.
0:37:18 > 0:37:20You know, it's certainly a challenging project,
0:37:20 > 0:37:23but the end result could be a very nice house.
0:37:23 > 0:37:26After the problems have been fixed and the house has been
0:37:26 > 0:37:30refurbished, how much does the agent think it could be valued at?
0:37:30 > 0:37:33When the property is completed, the value
0:37:33 > 0:37:37would be £115,000 to £120,000.
0:37:37 > 0:37:39And the rental income it could produce?
0:37:39 > 0:37:44I feel the rental value will be £525 per calendar month.
0:37:45 > 0:37:46Well, there's a few issues,
0:37:46 > 0:37:51but I think this place definitely has that all important potential.
0:37:51 > 0:37:55And for £65,000 guide price, yeah.
0:37:55 > 0:37:57Let's see who bought it when it went under the hammer.
0:37:57 > 0:38:0196, good location, Sandbach, South Cheshire.
0:38:01 > 0:38:03What shall we say for this one?
0:38:03 > 0:38:05What's this, 40,000 to start me here?
0:38:05 > 0:38:0638, then, can we get it going...
0:38:06 > 0:38:1038 bid, thank you. At £38,000, 38,000.
0:38:10 > 0:38:1240, thank you. At 40,000.
0:38:12 > 0:38:1542? 42, 44, 46...
0:38:15 > 0:38:20Keen interest on the auction day and we rejoin the bidding at 69,000.
0:38:21 > 0:38:24New bidder, far left. 69,000.
0:38:24 > 0:38:2670, 71.
0:38:26 > 0:38:2972. 73.
0:38:29 > 0:38:3174.
0:38:31 > 0:38:3475. Nope?
0:38:34 > 0:38:38At 75,000 then, far left at £75,000.
0:38:38 > 0:38:4076 anywhere else?
0:38:40 > 0:38:4476, back in. 77?
0:38:44 > 0:38:4778 on the back row? 78.
0:38:47 > 0:38:5179. 80?
0:38:52 > 0:38:5679 then, far left corner at £79,000.
0:38:56 > 0:38:5980 anywhere else? He's back in, 80.
0:39:01 > 0:39:0281.
0:39:04 > 0:39:07Sure? 81, once. 81, twice.
0:39:07 > 0:39:11Third and last time, far corner, 81,000...
0:39:11 > 0:39:13Sold to you, sir. Well done.
0:39:13 > 0:39:16Buying the house for 81,000 was Lee and his mother, Helen,
0:39:16 > 0:39:18who's just hidden from view.
0:39:19 > 0:39:23Lee lives locally and runs a construction and landscaping company
0:39:23 > 0:39:25specialising in patios and driveways
0:39:25 > 0:39:27and he dabbles in property developing.
0:39:29 > 0:39:32I met him back at the house to find out more.
0:39:32 > 0:39:35- Lee, great to meet you. - Yeah.- Congratulations.- Thank you.
0:39:35 > 0:39:37Tell me why you wanted to buy this place.
0:39:37 > 0:39:41Well, me mum came with me to the auction
0:39:41 > 0:39:44- and she'd actually found the property.- Right.
0:39:44 > 0:39:48Sometimes we work together on small projects.
0:39:48 > 0:39:50She came to me and actually said,
0:39:50 > 0:39:52"I've found a property I'm interested in.
0:39:52 > 0:39:54"Do you want to come and have a look at it?"
0:39:54 > 0:39:57- So it was a collaboration between you and your mum?- Yeah.
0:39:59 > 0:40:02Lee's mum, Helen, will provide the capital.
0:40:02 > 0:40:07Lee will carry out the work and they'll split any profits 50/50.
0:40:07 > 0:40:10What was it that you both liked about the place?
0:40:10 > 0:40:12We liked the position of it because we know the area,
0:40:12 > 0:40:13we're just up the road.
0:40:13 > 0:40:15It hadn't been lived in for seven years, which is
0:40:15 > 0:40:19always what I like because you get them for a better price.
0:40:19 > 0:40:22And obviously, with being a builder, there's more profit in it,
0:40:22 > 0:40:24hopefully, at the end of the day.
0:40:24 > 0:40:26What do you think the challenges here are then?
0:40:26 > 0:40:30Well, basically we've just got to start from scratch.
0:40:30 > 0:40:33Just go through it and start by taking the plaster off the walls,
0:40:33 > 0:40:37downstairs putting a new damp proof course in, rewiring,
0:40:37 > 0:40:41re-plumbing, all new floorings and double glazing.
0:40:41 > 0:40:44We're going to transfer the kitchen into this room where we're stood
0:40:44 > 0:40:49because the kitchen is too small and at a funny angle in that room...
0:40:49 > 0:40:51and perhaps change that either into a dining room
0:40:51 > 0:40:53or a snug or something like that.
0:40:53 > 0:40:56Perhaps put a small porch or something linking it
0:40:56 > 0:41:00to the outside toilet to make a downstairs toilet which is usable.
0:41:00 > 0:41:02So talk me through your numbers then.
0:41:02 > 0:41:03How much are you going to spend?
0:41:03 > 0:41:06- We've estimated to spend sort of about £20,000 on it.- OK.
0:41:06 > 0:41:10So we're hoping to get it all complete for £100,000
0:41:10 > 0:41:13and I'll make an allowance of my time in that
0:41:13 > 0:41:16and obviously I've got employees which I've got to pay out of that.
0:41:16 > 0:41:17Right.
0:41:17 > 0:41:19So there'll be a team of people working on it
0:41:19 > 0:41:24and then any profits at the end, we'll split between us.
0:41:24 > 0:41:27No doubt Lee's landscaping experience will come in handy
0:41:27 > 0:41:32and he'll carry out the jobs with his usual team of workers.
0:41:32 > 0:41:35What is the time scale for getting it sorted, then?
0:41:35 > 0:41:37Well, normally I always have a quiet spell in January
0:41:37 > 0:41:40when I look for a project to do, you know,
0:41:40 > 0:41:44and I'm going to come here and convert this, should take about
0:41:44 > 0:41:47six weeks from start to finish, if I'm on it fulltime.
0:41:47 > 0:41:50And you're talking about not starting it till January?
0:41:50 > 0:41:52- That's right, it'll be just sat here.- Really?
0:41:52 > 0:41:54Won't be starting it till winter now.
0:41:54 > 0:41:57- Right, well, listen, congratulations.- Thank you.
0:41:57 > 0:41:59Good luck with it and we look forward to seeing how you get on.
0:41:59 > 0:42:01OK, thank you.
0:42:01 > 0:42:04Well, Lee certainly seems to have the right idea when it comes
0:42:04 > 0:42:07to sorting this place out, but I've just got a couple of niggles.
0:42:07 > 0:42:11One is the finances, not a lot of money in it,
0:42:11 > 0:42:13especially when you factor in him paying himself.
0:42:13 > 0:42:17And then that timescale, not starting it for, what,
0:42:17 > 0:42:19five, six months?
0:42:19 > 0:42:22As we say in property, time is money and that is a long time.
0:42:24 > 0:42:27Will he really leave it? You'll find out later in the show.
0:42:31 > 0:42:35Well, time and tide wait for no man. The months have passed.
0:42:35 > 0:42:39Have those properties been the subject of a DIY extravaganza
0:42:39 > 0:42:41or a professional job?
0:42:41 > 0:42:43Have they remained exactly the same?
0:42:43 > 0:42:46The moment of truth... Let's find out.
0:42:48 > 0:42:52It was in the Kent costal town of Dover where we first saw
0:42:52 > 0:42:56a two-bedroom mid terrace house spread over three floors.
0:42:56 > 0:43:00It was tired and dated and needed a complete overhaul.
0:43:00 > 0:43:03There appeared to be nothing particularly special
0:43:03 > 0:43:06about the property but...
0:43:06 > 0:43:08Well, this is where it gets interesting.
0:43:08 > 0:43:12Because this property comes with full planning permission from
0:43:12 > 0:43:16Dover District Council to convert this whole place into two flats.
0:43:17 > 0:43:20Ah, so suddenly my developer's eyes lit up.
0:43:20 > 0:43:23Not only could you get a two-for-one offer here,
0:43:23 > 0:43:26but the all-important planning permission was in place.
0:43:27 > 0:43:31A deal like this was too good to turn down for experienced
0:43:31 > 0:43:33property developer Debbie, who buys and renovates
0:43:33 > 0:43:38properties on behalf of clients she has both here in the UK and abroad.
0:43:38 > 0:43:40Now, so many developers that I meet go,
0:43:40 > 0:43:42"Yeah, yeah, got the plans, rubbish, don't want use those.
0:43:42 > 0:43:45"We're going to change it, we're going to put an extra room in here,
0:43:45 > 0:43:47"build an extension out there..."
0:43:47 > 0:43:48So you know, are you happy with those plans?
0:43:48 > 0:43:51Well, funny you should say that.
0:43:51 > 0:43:56We are half-thinking of doing a small extension from the outside store
0:43:56 > 0:43:59across to the other wall there which would give us a much bigger kitchen.
0:43:59 > 0:44:02So in terms of space, it really would work.
0:44:02 > 0:44:04But it's the planning and it's the timing and it's all of that
0:44:04 > 0:44:07that's going to not allow you to crack on with this project.
0:44:07 > 0:44:10Well, that's what we've got to add in to the equation.
0:44:10 > 0:44:13So Debbie was going to need to work the numbers on a property
0:44:13 > 0:44:16that her client had bought for 86,000
0:44:16 > 0:44:20and had given her a 45,000 grand budget for the conversion work.
0:44:22 > 0:44:23And now, five months later,
0:44:23 > 0:44:26we're back to see the sum of all Debbie's endeavours.
0:44:28 > 0:44:31Looks promising, but is it one house...
0:44:31 > 0:44:33or two flats?
0:44:33 > 0:44:38We've divided the property into two flats so we've taken the lower
0:44:38 > 0:44:44set of stairs out and that is now a self-contained one-bedroom flat.
0:44:49 > 0:44:50Just by losing the stairs
0:44:50 > 0:44:53and using some of the good-sized kitchen space,
0:44:53 > 0:44:55Debbie has managed to incorporate a rather sleek
0:44:55 > 0:44:57and contemporary shower room.
0:45:01 > 0:45:05While the kitchen has certainly gone up a notch or two.
0:45:05 > 0:45:08And the lounge-cum-bedroom is now a whole lot better without the,
0:45:08 > 0:45:10um, holes in the walls.
0:45:12 > 0:45:14And this property is now a two-bedroom maisonette,
0:45:14 > 0:45:18so we've put the kitchen where the bathroom was.
0:45:20 > 0:45:21Hooray.
0:45:21 > 0:45:25Now that is such a better use of the over-large bathroom space.
0:45:25 > 0:45:27It shows how big it was.
0:45:27 > 0:45:30Not only does it have a reasonably-sized kitchen in it now,
0:45:30 > 0:45:32but with one of the stairwells removed,
0:45:32 > 0:45:35there's still room for the bathroom in the corner.
0:45:37 > 0:45:40The lounge is now right where it would have been initially,
0:45:40 > 0:45:43and the bedrooms are pretty much the same, as well.
0:45:44 > 0:45:47And with the downstairs stairwell gone,
0:45:47 > 0:45:50that lounge is much more of a room than a corridor.
0:45:53 > 0:45:55The two bedrooms make this a good-sized home.
0:45:59 > 0:46:02But what happened to the plan to make the downstairs flat bigger?
0:46:04 > 0:46:07Initially, it was so tempting to put another room on the ground floor
0:46:07 > 0:46:11but after it was purchased, it's money that's just sitting there,
0:46:11 > 0:46:15really, and so we needed to get on and get the job done.
0:46:15 > 0:46:17Even if it hasn't got a bigger kitchen,
0:46:17 > 0:46:21the ground floor flat does have the added bonus of a great garden
0:46:21 > 0:46:24with a patio area, which is almost like an extra room.
0:46:26 > 0:46:29Both flats have parking spaces at the rear but even without
0:46:29 > 0:46:34an extension, it was a lot of work to convert the house into two flats.
0:46:34 > 0:46:37So how involved was Debbie in the process?
0:46:37 > 0:46:40The work has all been done by a guy called Ben,
0:46:40 > 0:46:42who's a local guy to me where I live
0:46:42 > 0:46:44and he took on board pretty much the
0:46:44 > 0:46:46project management side of this as well,
0:46:46 > 0:46:50and my role was really quite restricted in this case.
0:46:50 > 0:46:52With several other projects on the go,
0:46:52 > 0:46:56Debbie was reliant on builder Ben to come up with the goods
0:46:56 > 0:46:59and he certainly seems to have come up trumps here.
0:46:59 > 0:47:03So how was it, managing such a comprehensive conversion for Debbie?
0:47:03 > 0:47:06It's been absolutely great, really.
0:47:06 > 0:47:11Yeah, enjoyed working for her, she's given me quite a free rein, really.
0:47:16 > 0:47:20And that free rein included choosing a lot of the colours...
0:47:20 > 0:47:23in particular, the striking red of the shower room
0:47:23 > 0:47:24in the downstairs flat.
0:47:24 > 0:47:27So come on, Ben, how did that come about?
0:47:27 > 0:47:29It really came from looking for the floor.
0:47:29 > 0:47:33I was looking at some lino and saw this lovely, you know,
0:47:33 > 0:47:38lipstick red one and it gave us the idea for the contemporary style
0:47:38 > 0:47:42so I think the chrome, the red and the white go quite well together.
0:47:47 > 0:47:49So, with Ben adding the splash of colour,
0:47:49 > 0:47:53it was down to Debbie to splash the cash on her investors' behalf.
0:47:55 > 0:47:57So how much has she spent?
0:47:57 > 0:48:0045,000, pretty much on the dot.
0:48:03 > 0:48:08And that £45,000 spend on top of the £86,000 purchase price,
0:48:08 > 0:48:13takes the investors' total cost to £131,000 without taxes and fees.
0:48:15 > 0:48:18So does it all add up to a good deal?
0:48:18 > 0:48:20What do two local estate agents think?
0:48:22 > 0:48:25This property has been converted really well.
0:48:25 > 0:48:29It's now into two very neat self-contained apartments.
0:48:29 > 0:48:33Very stylish, very, very nicely done.
0:48:33 > 0:48:37Quite funky in places, which I like, particularly in the bathroom
0:48:37 > 0:48:40and the kitchen's splashbacks are quite nice colours.
0:48:41 > 0:48:45With the rental market in Dover being very buoyant, Debbie's
0:48:45 > 0:48:49investors have decided to hang onto the flats and rent them out.
0:48:50 > 0:48:52But how much capital growth could
0:48:52 > 0:48:56they see on their 131,000 investment?
0:48:56 > 0:48:59The resale values of the apartments
0:48:59 > 0:49:04now are £45,000 to £50,000 for the studio flat
0:49:04 > 0:49:09and £70,000 to £75,000 for the two-bedroom flat upstairs.
0:49:09 > 0:49:15The lower ground floor would retail at approximately £50,000 to £55,000.
0:49:15 > 0:49:20The upper flat would retail at £65,000 to £70,000.
0:49:20 > 0:49:22So with the current value of the two flats combined
0:49:22 > 0:49:27being between £110,000 and £130,000,
0:49:27 > 0:49:30there really isn't any money to be made on the resale market.
0:49:30 > 0:49:33So rental figures are key to making sure this works
0:49:33 > 0:49:36as an investment vehicle.
0:49:36 > 0:49:39Rental values here now are £400 per calendar month
0:49:39 > 0:49:41for the studio apartment
0:49:41 > 0:49:46and £600 per calendar month for the two-bedroom apartment.
0:49:46 > 0:49:51The lower ground floor flat would rent at £450 per calendar month
0:49:51 > 0:49:56whilst the upper flat would rent at £550 per calendar month.
0:49:56 > 0:50:00We were thinking £350 to £400 for the one-bed
0:50:00 > 0:50:06and sort of £450 to £550 for this one, so that's not far off.
0:50:07 > 0:50:13A total rental income of £1,000 per calendar month from both flats
0:50:13 > 0:50:16would generate a yield of just above 9%. Now that's not a bad return.
0:50:16 > 0:50:20So are there more properties in the pipeline for Debbie?
0:50:21 > 0:50:25Well, I bought two more at the beginning of this week.
0:50:25 > 0:50:27I'm a glutton for punishment.
0:50:29 > 0:50:32So no, I just move on to the next and just keep going, really.
0:50:32 > 0:50:36Yeah, I've got ten projects on the go at the moment,
0:50:36 > 0:50:39being developed into about 25 flats altogether in different
0:50:39 > 0:50:41areas of Kent and South East London.
0:50:42 > 0:50:44So, yeah, I'm busy.
0:50:48 > 0:50:52And someone else who was busy was builder and landscaper Lee,
0:50:52 > 0:50:56who had bought, in the summer of 2012, a two-bed mid terrace property
0:50:56 > 0:51:01in Sandbach, Cheshire, for £81,000 as a joint project with his mum.
0:51:01 > 0:51:03MUSIC: "I Will Wait" by Mumford & Sons
0:51:03 > 0:51:05Having lain empty for over seven years,
0:51:05 > 0:51:09this property was now desperately in need of attention.
0:51:09 > 0:51:11But it seemed it would have to wait even longer.
0:51:12 > 0:51:16# And I will wait, I will wait for you
0:51:19 > 0:51:21# And I will wait... #
0:51:21 > 0:51:23What is the timescale for getting it sorted, then?
0:51:23 > 0:51:27Well, normally I always have a quiet spell in January
0:51:27 > 0:51:28when I look for a project to do.
0:51:28 > 0:51:31And you're talking about not starting it till January?
0:51:31 > 0:51:33- That's right, yeah, it'll be just sat here.- Really?
0:51:33 > 0:51:35- Won't be starting it till winter now.- Right.
0:51:35 > 0:51:38So, a little patience was called for before Lee would start work.
0:51:38 > 0:51:40MUSIC: "Patience" by Take That
0:51:40 > 0:51:43# Just have a little patience... #
0:51:43 > 0:51:47And with a budget of £22,000 to £23,000,
0:51:47 > 0:51:50he had a comprehensive refurbishment planned.
0:51:50 > 0:51:55# I really want to start over again... #
0:51:55 > 0:51:59And now, ten months on, with the winter behind us,
0:51:59 > 0:52:02we return with Lee to see if it's been worth the wait.
0:52:11 > 0:52:14Certainly, the outside looks fresher and more vibrant
0:52:14 > 0:52:18and its general curb appeal has gone up a notch or two.
0:52:20 > 0:52:21And inside?
0:52:33 > 0:52:34Wow, that's not bad, either.
0:52:37 > 0:52:40It's been replastered, rewired,
0:52:40 > 0:52:42damp-proofed, re-plumbed...
0:52:42 > 0:52:44The lot.
0:52:44 > 0:52:47And that sorry looking kitchen?
0:52:47 > 0:52:49Well, it's not so sorry now.
0:52:49 > 0:52:53I had planned to move the kitchen into the other room but after
0:52:53 > 0:52:58a good design, I found that there's actually plenty of room in here.
0:52:58 > 0:53:01I've incorporated granite-style worktops
0:53:01 > 0:53:04and a new designer white sink.
0:53:04 > 0:53:06Lee's right, this space is actually more than adequate.
0:53:06 > 0:53:09And anyway, it would have been a shame to have lost
0:53:09 > 0:53:12the space in the back reception room.
0:53:12 > 0:53:14But how's upstairs looking?
0:53:32 > 0:53:35Crisp, clean, bright and modern.
0:53:40 > 0:53:43Remember that garden that was more concrete than grass?
0:53:45 > 0:53:49Well, there's no sign of a lawn but it does look a million times better.
0:53:49 > 0:53:53So it really does seem like it was worth the wait.
0:53:54 > 0:53:58# And have a little patience... #
0:53:59 > 0:54:02Having my own landscaping company has enabled me
0:54:02 > 0:54:04to transform the back of the house.
0:54:04 > 0:54:07I installed a new raised bed at the back with new plants in,
0:54:07 > 0:54:11new fencing and a beautiful new Indian-style patio.
0:54:11 > 0:54:14I've repainted all the back of the house, new rainwater goods.
0:54:14 > 0:54:19But the biggest transformation for me is the outside toilet.
0:54:19 > 0:54:24I've blocked up the original entrance and then re-rendered it.
0:54:24 > 0:54:29And that previously outside toilet has now been incorporated
0:54:29 > 0:54:32into the house to create a downstairs cloak room.
0:54:32 > 0:54:36But is this all Lee's handiwork?
0:54:36 > 0:54:39I've done about 80% myself.
0:54:39 > 0:54:44I brought in trades for the electrics and the plastering.
0:54:45 > 0:54:46So Lee's been busy.
0:54:46 > 0:54:50But this was a joint project between him and his mum.
0:54:50 > 0:54:53So is she happy with the outcome?
0:54:53 > 0:54:57My mum's very pleased with the property and how it's turned out.
0:54:57 > 0:55:01She's actually done the decoration on the property herself
0:55:01 > 0:55:05and added a few little finishing touches.
0:55:05 > 0:55:10And hopefully we'll get a good market price and split the profit.
0:55:10 > 0:55:14Ah, a profit. But will there be any?
0:55:14 > 0:55:16That all depends on how much they spent here.
0:55:19 > 0:55:20We've reckoned it up
0:55:20 > 0:55:25and I think we've spent about 21,000 on renovating it.
0:55:28 > 0:55:33Well, a £21,500 spend on top of a £81,000 purchase price
0:55:33 > 0:55:36takes their total cost to £102,500.
0:55:36 > 0:55:40So has it been time and money well spent?
0:55:40 > 0:55:42What did two local estate agents think?
0:55:47 > 0:55:51Having seen it before, I think it's a fantastic job.
0:55:51 > 0:55:53They've done it to a really high specification
0:55:53 > 0:55:55and I'm impressed with the overall condition.
0:55:55 > 0:55:57It's a great terraced property.
0:55:57 > 0:55:59Nice finish, superb presentation
0:55:59 > 0:56:01and certainly would make the perfect first-time buyer home.
0:56:01 > 0:56:03The rear garden is particularly nice.
0:56:03 > 0:56:05I think they've done a really good job.
0:56:05 > 0:56:08It's enclosed, it's private and easy to maintain.
0:56:08 > 0:56:13Lee and his mum hope to sell this property on but if it didn't sell
0:56:13 > 0:56:16then they would have to consider the rental market.
0:56:16 > 0:56:23My recommended rental value would be £525 per calendar month
0:56:23 > 0:56:26to £550 per calendar month.
0:56:26 > 0:56:29The rental market is really strong in this area so in my opinion,
0:56:29 > 0:56:32this property would let for a figure of £575 per calendar month.
0:56:32 > 0:56:35Yes, that's a good monthly value,
0:56:35 > 0:56:40although we are going to put it on the market for sale.
0:56:40 > 0:56:44Yes, even rental values of £525 per calendar month would generate
0:56:44 > 0:56:47a yield of above 6%.
0:56:47 > 0:56:51But ideally, this was a buy, do up and sell project,
0:56:51 > 0:56:55so having invested £102,500 in the house,
0:56:55 > 0:56:57is there a profit to be had?
0:56:59 > 0:57:03My recommended sale value for the property would be
0:57:03 > 0:57:07£125,000 to £130,000.
0:57:07 > 0:57:11In my opinion, this property will sell for offers over £125,000.
0:57:11 > 0:57:15That's excellent, that's what I was hoping for and we've already
0:57:15 > 0:57:18put it on the market at £134,950
0:57:18 > 0:57:21hoping to achieve £130,000.
0:57:22 > 0:57:26And those resale values could see a potential pre-tax profit
0:57:26 > 0:57:29of between £22,500 and £27,500.
0:57:29 > 0:57:31Not bad.
0:57:31 > 0:57:35So is Lee, together with his mum, planning more seasonal work?
0:57:37 > 0:57:42I'm very, very busy at the moment, but now me mum's done this one,
0:57:42 > 0:57:45she's eager to get another project on the go
0:57:45 > 0:57:49and she's got one in the pipelines so that'll keep me even busier.
0:57:53 > 0:57:55We'll have lots more auction properties for you
0:57:55 > 0:57:57next time on Homes Under The Hammer.
0:57:57 > 0:58:01- Yes, join us then for more action from the auctions.- Goodbye.- Goodbye.