0:00:02 > 0:00:03Hello and welcome to the programme.
0:00:03 > 0:00:05If you've ever tried to buy a house and then
0:00:05 > 0:00:07got caught in a dreaded property chain,
0:00:07 > 0:00:09- you'll know what a nightmare it can be.- Yeah.
0:00:09 > 0:00:12So, how can you avoid that kind of situation?
0:00:12 > 0:00:16Ah, well, one way is to buy your next home under the hammer.
0:00:41 > 0:00:45Well, people go to the auctions with all sorts of budgets,
0:00:45 > 0:00:47looking for many different kinds of property.
0:00:47 > 0:00:50Yes, there is an enormous choice available,
0:00:50 > 0:00:53so let's see what today's buyers bid for.
0:00:53 > 0:00:56At this three-bed end-terrace in Staffordshire,
0:00:56 > 0:00:59something big has got to give.
0:00:59 > 0:01:00This is a big old wall,
0:01:00 > 0:01:03but wouldn't it be great if you could take that out?
0:01:03 > 0:01:07Talking of big changes, there are plenty in store for this
0:01:07 > 0:01:08abandoned house in Surrey,
0:01:08 > 0:01:11changes that weren't planned from the outset.
0:01:13 > 0:01:16And there is good news and bad news, once I find the bathroom,
0:01:16 > 0:01:18in this Cumbrian mid-terrace.
0:01:18 > 0:01:21Well, it is upstairs, which is good,
0:01:21 > 0:01:23but it is accessed through a bedroom.
0:01:25 > 0:01:27All these properties have been sold at auction,
0:01:27 > 0:01:31and we'll find out who bought them and what they paid for them
0:01:31 > 0:01:33when they went under the hammer.
0:01:37 > 0:01:39Today, I am in the village of Tittensor,
0:01:39 > 0:01:42near Stoke-on-Trent, Staffordshire.
0:01:42 > 0:01:46A commuter haven with lovely views, it has a local shop
0:01:46 > 0:01:51and post office, a church, as well as easy access to the A34.
0:01:51 > 0:01:54Well, right at the heart of the village,
0:01:54 > 0:01:57is the property that I am here to see.
0:01:57 > 0:02:00And very grand it's looking, too.
0:02:00 > 0:02:01I say that because of its position -
0:02:01 > 0:02:04a nice elevated one overlooking the hills.
0:02:04 > 0:02:06A three-bed, end-terrace.
0:02:06 > 0:02:09At a guide price of £85,000 plus, let's take a look.
0:02:10 > 0:02:14It really is quite an idyllic setting, overlooking the fine,
0:02:14 > 0:02:17roaming Staffordshire countryside.
0:02:25 > 0:02:28OK, nice little entrance, porch area there.
0:02:28 > 0:02:31Somewhere to put your coats and stuff like that.
0:02:31 > 0:02:34Always useful to have. And then into the main part of the house.
0:02:34 > 0:02:36Stairs up to your bedrooms there.
0:02:36 > 0:02:39Front sitting room, decent size, over that way.
0:02:39 > 0:02:42All in all, it is not looking to be in bad condition.
0:02:42 > 0:02:43Through to a rear sitting room.
0:02:43 > 0:02:48It feels a little bit cramped, this, though. Um... Hm.
0:02:48 > 0:02:50Through there, you've got your kitchen.
0:02:50 > 0:02:53That's not a bad space, but... Hm.
0:02:54 > 0:02:59I wonder if this... I mean, it's a big old wall.
0:02:59 > 0:03:02But wouldn't it be great if you could take that out and create a
0:03:02 > 0:03:07really nice-sized, open-plan kitchen and kind of like living area?
0:03:07 > 0:03:11That works really well in a modern family house. A lot of work, though.
0:03:11 > 0:03:13But it might be worth it.
0:03:13 > 0:03:17And if things are a bit cramped downstairs,
0:03:17 > 0:03:19I'm guessing the story upstairs will be the same.
0:03:22 > 0:03:25So, up here, what have we got? Well, three bedrooms.
0:03:25 > 0:03:27A slightly smaller one there.
0:03:27 > 0:03:29A half decent sized one there,
0:03:29 > 0:03:32with an interesting little cubbyhole in it.
0:03:32 > 0:03:34Cubbyhole, sort of storage room thing,
0:03:34 > 0:03:36with that beautiful round window.
0:03:36 > 0:03:38I'd certainly want to make more of that.
0:03:38 > 0:03:42In fact, the whole layout is just a little bit... Well, it's...
0:03:42 > 0:03:46It's different to what I've seen before, partly in here.
0:03:46 > 0:03:48The bathroom, it's not a bad size.
0:03:48 > 0:03:52It has got a little area there for the shower cubicle,
0:03:52 > 0:03:54which does actually work quite well.
0:03:54 > 0:03:58But the way it's built into the sort of upstairs corridor here,
0:03:58 > 0:04:01with these cupboards and things, I don't know.
0:04:01 > 0:04:05It's one of these ones where you may play around with that or not,
0:04:05 > 0:04:08really. I think you could probably live with that as it is.
0:04:08 > 0:04:10And the bedrooms... Another one at the back here,
0:04:10 > 0:04:12again, a half-decent size.
0:04:12 > 0:04:15There's just a couple of tweaks I'd do to the layout.
0:04:15 > 0:04:19But all in all, it is a good house. It is a great house.
0:04:19 > 0:04:21I do like the house, the only question is,
0:04:21 > 0:04:24to tweak or not to tweak?
0:04:24 > 0:04:27If I was going to live here, I'd tweak. But if this is for rental,
0:04:27 > 0:04:29then maybe it wouldn't be worth your while.
0:04:29 > 0:04:31One to ponder, I think.
0:04:32 > 0:04:34So, out the back of the property,
0:04:34 > 0:04:37not exactly a huge amount of space, but a few useful bits and pieces.
0:04:37 > 0:04:40I particularly like this brick-built outbuilding.
0:04:40 > 0:04:43Maybe even expand that and turn it into a little workshop
0:04:43 > 0:04:46or somewhere, I don't know, like a home office?
0:04:46 > 0:04:50Other than that, it's all primarily laid to concrete.
0:04:50 > 0:04:51You've got a little shed.
0:04:51 > 0:04:54Um, good news, though, I suppose if you rented this place out,
0:04:54 > 0:04:56it is very low-maintenance.
0:04:56 > 0:04:59Cos tenants don't often sort the garden out.
0:04:59 > 0:05:02The garden is certainly no trouble to look after.
0:05:02 > 0:05:05And this house, in fact, demonstrates pretty well that
0:05:05 > 0:05:08houses bought at auction don't necessarily mean trouble.
0:05:08 > 0:05:11This is a pretty nice house in a nice location,
0:05:11 > 0:05:13and you really could get by
0:05:13 > 0:05:16with just decorating and modernizing it a bit.
0:05:16 > 0:05:18Does our local estate agent agree with me?
0:05:18 > 0:05:21It's a real opportunity for somebody if they wanted to come in
0:05:21 > 0:05:24and put her own stamp on it in terms of kitchen,
0:05:24 > 0:05:27bathrooms, cosmetics, central heating.
0:05:27 > 0:05:31So, it is a real good sort of property with a lot of scope
0:05:31 > 0:05:32and potential.
0:05:32 > 0:05:34We're agreed, then.
0:05:34 > 0:05:37But can the agent see any downsides to this property?
0:05:37 > 0:05:40Probably the only downside for the family-market perspective,
0:05:40 > 0:05:42you've got to look at the size of the garden.
0:05:42 > 0:05:45The garden isn't massive, unfortunately.
0:05:45 > 0:05:48I suppose that is another way of looking at the garden.
0:05:48 > 0:05:50It is a bit small for a swing and a slide.
0:05:50 > 0:05:52But that aside,
0:05:52 > 0:05:55what could the potential resale value of the house be?
0:05:55 > 0:05:57I think, subject to condition, I think
0:05:57 > 0:06:01you've got to look at a resale value of about £125,000.
0:06:01 > 0:06:03And if you were to rent this out,
0:06:03 > 0:06:05how would it fare in the rental stakes?
0:06:05 > 0:06:09I think once the property is done to a good standard,
0:06:09 > 0:06:11I think you'd be looking at £550 per calendar month.
0:06:14 > 0:06:16Well, a few layout issues to resolve,
0:06:16 > 0:06:19but intrinsically, a good, solid little house.
0:06:19 > 0:06:22Let's see who bought it when it went under the hammer.
0:06:22 > 0:06:26Three bedrooms, two reception rooms, nice village location
0:06:26 > 0:06:28and open aspect.
0:06:28 > 0:06:29So what should we say for Lot 61?
0:06:29 > 0:06:33Can we start in at 78? Lot number 61.
0:06:33 > 0:06:37Yep, 78 bid, thank you. It is £78,000. 80 can I say now?
0:06:37 > 0:06:40At £78,000. Yes, 80.
0:06:40 > 0:06:4281? 81.
0:06:42 > 0:06:4482? 82.
0:06:44 > 0:06:4683. 84.
0:06:48 > 0:06:53At £84,000, then. Going to the back wall at £84,000.
0:06:53 > 0:06:5485 anywhere else?
0:06:54 > 0:06:58At £84,000, then, are we all done?
0:06:58 > 0:07:01At £84,000, then, for the first time...
0:07:01 > 0:07:05At £84,000 for the second time...
0:07:05 > 0:07:09Third and final time at £84,000.
0:07:09 > 0:07:11Missed you, sorry, 85.
0:07:11 > 0:07:12At 85.
0:07:12 > 0:07:1486? 86.
0:07:14 > 0:07:1687? No?
0:07:16 > 0:07:18At £86,000 on the back wall, then.
0:07:18 > 0:07:21Are we all done now? At 86...
0:07:21 > 0:07:25Back in, 87. At 87,000. 88?
0:07:27 > 0:07:29No? At £87,000, seated to the right, then.
0:07:29 > 0:07:32At £87,000, all done now?
0:07:33 > 0:07:35At £87,000, then, for the first time...
0:07:35 > 0:07:39At £87,000 for the second time...
0:07:39 > 0:07:43Third and final time at £87,000, are we all done?
0:07:43 > 0:07:45You bought it, sir, well done.
0:07:45 > 0:07:47The lot came up towards the end of the auction,
0:07:47 > 0:07:50but clearly there were some bidders with staying power.
0:07:50 > 0:07:53Bob got it for £87,000.
0:07:53 > 0:07:57He runs his own mirror manufacturing company, and I met him back
0:07:57 > 0:08:01at the house to find out what had made this property shine for him.
0:08:02 > 0:08:05- Bob, great to meet you. - And you.- Congratulations.
0:08:05 > 0:08:07Thank you very much.
0:08:07 > 0:08:09- Um, good, solid little house. - It is. Definitely.
0:08:09 > 0:08:12Tell me why you wanted to buy it.
0:08:12 > 0:08:15Because I am local here, in this area.
0:08:15 > 0:08:18I passed it every day on the way to work,
0:08:18 > 0:08:21so I thought, "Hm, I'll have a look at that."
0:08:21 > 0:08:25- And when I had a look at it, I decided that that is for me.- Yeah.
0:08:25 > 0:08:26I'll put this into the portfolio.
0:08:26 > 0:08:28Into the portfolio, that sounds exciting.
0:08:28 > 0:08:33- How big is your portfolio?- Small, small. This will be the third.- OK.
0:08:33 > 0:08:35But when did you start it?
0:08:35 > 0:08:37- Couple of years ago.- OK.
0:08:37 > 0:08:41So, what was it about this property that attracted his attention?
0:08:41 > 0:08:45It didn't have a tremendous amount wrong with it.
0:08:45 > 0:08:47It's the norm - rip out the kitchen,
0:08:47 > 0:08:50rip out the bathroom,
0:08:50 > 0:08:53thorough decoration all the way through
0:08:53 > 0:08:58- and we'll knock out the wall that is standing behind you.- Right.
0:08:58 > 0:09:01- The fairly substantial-looking wall behind me.- It is. Yeah, yeah.
0:09:01 > 0:09:03But I have got a substantial hammer.
0:09:03 > 0:09:06THEY LAUGH
0:09:06 > 0:09:09And is it you wielding that hammer or do you have people to do it?
0:09:09 > 0:09:15I've got some people to help, but I do the exciting bit.
0:09:15 > 0:09:18- Which is the bit...?- Which is the demolition part.- Really?
0:09:18 > 0:09:22- Yeah. That's...that's the good bit. - Is it? OK.
0:09:22 > 0:09:24If Bob can remove the wall and chimney, I think
0:09:24 > 0:09:28it will make a huge difference. But he will have his work cut out.
0:09:28 > 0:09:31# I came in like a wrecking ball
0:09:31 > 0:09:35# I never hit so hard in love
0:09:35 > 0:09:40# All I wanted was to break your walls
0:09:40 > 0:09:42# All you ever did was
0:09:42 > 0:09:45# You wrecked me. #
0:09:45 > 0:09:49It turns out that Bob developed his passion for demolition in quite
0:09:49 > 0:09:51an unusual way.
0:09:51 > 0:09:53In my early 20s,
0:09:53 > 0:09:56I decided to emigrate to South Africa.
0:09:56 > 0:09:58- Right.- And I became a gold miner.
0:09:58 > 0:10:02- A gold miner?!- Correct.
0:10:02 > 0:10:06- Tell me more!- So I've demolished quite a few things in my time.
0:10:06 > 0:10:09- What, with explosives and stuff? - Exactly, yeah.
0:10:09 > 0:10:11And what did being a gold miner entail?
0:10:11 > 0:10:13Um...
0:10:13 > 0:10:21You...you had approximately 100, 150 workers under your control.
0:10:21 > 0:10:27- And you actually extracted ground out of the earth.- Right.
0:10:27 > 0:10:31- And from that, they subtracted gold. - So, was it underground stuff?
0:10:31 > 0:10:34- It was far underground. - Far underground.- Oh, yeah.
0:10:34 > 0:10:37- It was two and half miles underground.- Good grief!
0:10:37 > 0:10:40- Terribly hot.- Yeah.- Terribly sweaty.
0:10:40 > 0:10:42- How long did you do that for? - 12 years.
0:10:42 > 0:10:44- Right, and then came back to the UK? - Correct.
0:10:44 > 0:10:49- And now you are mining for gold in a different way.- In a different way.
0:10:49 > 0:10:51- Gosh, I bet your fireworks parties are a laugh.- They are.
0:10:51 > 0:10:53THEY LAUGH
0:10:53 > 0:10:55- # Gold!- Gold...
0:10:55 > 0:10:59Explosive stuff - dynamite, demolition and dust.
0:10:59 > 0:11:01Bob's not going to flinch at some DIY.
0:11:01 > 0:11:03# You're indestructible
0:11:03 > 0:11:05# Always believe in
0:11:05 > 0:11:08# Cos you are gold! #
0:11:08 > 0:11:13He's got his eye on other things besides walls in his plans.
0:11:13 > 0:11:18- Well, the bathroom is rather unusually shaped.- Mm-hmm.
0:11:18 > 0:11:21- But it works!- But it works.
0:11:21 > 0:11:25But what I intend to do is to rip out the door
0:11:25 > 0:11:29and then bring it forward, so we'll make the bathroom half a metre wider.
0:11:29 > 0:11:34- What is the budget for the works? - Probably £11,000.
0:11:34 > 0:11:37- OK, that is very precise.- Yes. Um...
0:11:37 > 0:11:43I've done it a couple of times before, so I've kept all my figures.
0:11:43 > 0:11:46And other than a bit of demolition work,
0:11:46 > 0:11:49it is going to be relatively the same.
0:11:49 > 0:11:53All we've got to do is, we've just got to rip out
0:11:53 > 0:11:55the floorboards up above to see that...
0:11:55 > 0:11:59When you say words like rip, I'm thinking...
0:11:59 > 0:12:03HE IMITATES A CHAIN SAW
0:12:03 > 0:12:05- "Hang on a minute." - That'll be simple.
0:12:05 > 0:12:07Boom!
0:12:08 > 0:12:10Check that the joists are running straight through
0:12:10 > 0:12:15- instead of just sitting on top of this chimney breast.- Mm-hmm.
0:12:16 > 0:12:20If they don't, then obviously, we'll have to attend to that.
0:12:20 > 0:12:24But the chimney breast is coming out. And then we have got a kitchen-diner.
0:12:24 > 0:12:27THEY LAUGH
0:12:27 > 0:12:31Bob isn't in a rush, he has a 12-week schedule for the work,
0:12:31 > 0:12:35and I'm sure that's as precisely worked out as the budget.
0:12:35 > 0:12:38There's no doubt he has already worked out the return for this
0:12:38 > 0:12:40new addition to his portfolio.
0:12:40 > 0:12:44- And what's the plan for it? Is it to rent it out?- Rent it out.
0:12:44 > 0:12:48- Do you know what you might get back? - Close to 600.- OK.
0:12:48 > 0:12:51- That's a reasonable return on investment.- Very good.
0:12:51 > 0:12:55- So, after this one, then, more plans for more?- Yeah.
0:12:55 > 0:12:58- It's going all right?- Yeah, it is. - Well, listen, congratulations.
0:12:58 > 0:13:02- Thanks for sharing, that was an amazing story.- Thanks very much.
0:13:02 > 0:13:06Go easy. And I look forward to seeing how you get on.
0:13:06 > 0:13:07Thank you very much.
0:13:09 > 0:13:10So, a good property.
0:13:10 > 0:13:15Will Bob strike gold when it comes to sorting it out, though?
0:13:15 > 0:13:17You can find out later in the show.
0:13:20 > 0:13:25Well, it is possible to strike gold in the property game,
0:13:25 > 0:13:28but sometimes you have to be prepared to bide your time.
0:13:28 > 0:13:30We first visited a house here,
0:13:30 > 0:13:34in Morden, Surrey, in the spring of 2013.
0:13:34 > 0:13:38# More than this
0:13:38 > 0:13:42# You know there's nothing... #
0:13:43 > 0:13:47Today, I've taken a turn off the main drag and, well,
0:13:47 > 0:13:50everything suddenly feels a lot more rural.
0:13:50 > 0:13:53Or should I say overgrown?
0:13:53 > 0:13:56As I try and track down our property.
0:13:56 > 0:13:59Now, it is a detached two-storey house.
0:13:59 > 0:14:03It had guide price of £145,000. There it is!
0:14:03 > 0:14:06Now, usually, I would head inside, I'd have a look around,
0:14:06 > 0:14:09but all the windows and the doors have been blocked up,
0:14:09 > 0:14:11so I can't get in.
0:14:11 > 0:14:13The property was unloved and abandoned,
0:14:13 > 0:14:16but it was on .18 acres of land.
0:14:16 > 0:14:20Now, that is an amazing find in an area of Surrey that is close
0:14:20 > 0:14:23enough to Central London to be on the Tube line.
0:14:24 > 0:14:27# You can treat me dirty
0:14:27 > 0:14:31# From a soul
0:14:31 > 0:14:33# That's been abused. #
0:14:35 > 0:14:38Well, the house has certainly seen better days,
0:14:38 > 0:14:41and it looks extremely derelict from the outside.
0:14:41 > 0:14:46I can only imagine what works it requires on the inside. Lots!
0:14:46 > 0:14:50Now, it does, however, sit on a really nice, large,
0:14:50 > 0:14:52rectangular plot of land.
0:14:52 > 0:14:54Now it is overgrown at the moment,
0:14:54 > 0:14:57but I think this land could be the real selling feature here.
0:14:57 > 0:15:01So, what are your options? Well, I think you actually have a couple.
0:15:01 > 0:15:03You could renovate the existing house
0:15:03 > 0:15:08and think about extending it or you could demolish and rebuild.
0:15:08 > 0:15:11Personally, I think demolition is the way to go,
0:15:11 > 0:15:15as the existing house needs so much repair work.
0:15:15 > 0:15:16What could you build?
0:15:16 > 0:15:19Well, I know this is a popular family spot, so I think a
0:15:19 > 0:15:23lovely, new three-bedroom house would work really well here.
0:15:23 > 0:15:26But hang on a minute, I'm not just talking about one house.
0:15:26 > 0:15:30The size of this plot, it's making me think big.
0:15:30 > 0:15:35I think you could fit two, three or even four properties on this site.
0:15:35 > 0:15:38Not bad for £145,000.
0:15:38 > 0:15:43But let's not get too excited just yet, as there are plenty of
0:15:43 > 0:15:48hoops to jump through before you can build your lovely new houses here.
0:15:48 > 0:15:51And there is no guarantee that the local council will grant you
0:15:51 > 0:15:52planning permission.
0:15:52 > 0:15:56And this process can take plenty of time and money.
0:15:56 > 0:16:00The planners will consider aspects such as parking provision,
0:16:00 > 0:16:03how well the planned properties will fit into their surroundings
0:16:03 > 0:16:07and also the privacy from the neighbouring houses.
0:16:07 > 0:16:10Unfortunately, there is still a long way to go
0:16:10 > 0:16:14until this really can be used as a building plot.
0:16:14 > 0:16:16# Cos you got a long way to go
0:16:16 > 0:16:18# It's not that deep, take it easy
0:16:18 > 0:16:20# You wanna please me You got a long way to go
0:16:20 > 0:16:23# Yeah, I said you got a long way to go.
0:16:23 > 0:16:25# Rock with me now. #
0:16:34 > 0:16:37A little scout around this site has thrown up a whole
0:16:37 > 0:16:39lot of exciting options.
0:16:39 > 0:16:42Let's see who felt this lot was worth fighting for
0:16:42 > 0:16:44when went to the auction.
0:16:44 > 0:16:48Not surprisingly, for a property this close to London with land,
0:16:48 > 0:16:51bidding at the auction was brisk, to say the least.
0:16:51 > 0:16:54274. 275.
0:16:54 > 0:16:56276.
0:16:56 > 0:16:58277.
0:16:58 > 0:17:00278.
0:17:01 > 0:17:03279.
0:17:03 > 0:17:05280.
0:17:05 > 0:17:06281.
0:17:06 > 0:17:08282.
0:17:09 > 0:17:11282.
0:17:11 > 0:17:13281, first-time...
0:17:13 > 0:17:15Second time...
0:17:15 > 0:17:18Third and last time, have you all done?
0:17:18 > 0:17:21Sold, 281. Sorry, the other bidders.
0:17:21 > 0:17:24So, at almost twice the guide price,
0:17:24 > 0:17:28the property was bought by Yayin for £281,000.
0:17:28 > 0:17:31Yayin was at the auction with his friend
0:17:31 > 0:17:33and fellow property developer, Andrew.
0:17:33 > 0:17:35They offer each other support on projects
0:17:35 > 0:17:38and they both come along to tell us what they had planned.
0:17:38 > 0:17:40Guys, congratulations.
0:17:40 > 0:17:42What was it about the site that you liked so much?
0:17:42 > 0:17:45Well, it was because it was quite a big site, where we
0:17:45 > 0:17:48have had preliminary drawings done on it,
0:17:48 > 0:17:51and I can see that they can have four dwellings that go on it.
0:17:51 > 0:17:54That was a goer for me more than anything else.
0:17:54 > 0:17:56So, when I first arrived at this site, I was like,
0:17:56 > 0:17:59"It's amazing, it's quiet, it's like the countryside."
0:17:59 > 0:18:02It is beautiful, you can't hear a thing.
0:18:02 > 0:18:03Until the train goes crashing past.
0:18:03 > 0:18:06# The railroad cuts through the middle of the house
0:18:06 > 0:18:09# The railroad cuts through the middle of the house
0:18:09 > 0:18:11# It comes and goes through the middle of the house
0:18:11 > 0:18:14# And the trains are all on time
0:18:14 > 0:18:15# And here comes... #
0:18:15 > 0:18:19But Yayin planned for the noise of the trains by specifying triple
0:18:19 > 0:18:25glazing - just one of the factors in his £800,000 development budget.
0:18:25 > 0:18:29But with a sales valuation of 1.25 million,
0:18:29 > 0:18:31I knew it was important to get planning permission.
0:18:31 > 0:18:33So, what did the council say?
0:18:33 > 0:18:35Had you had chats with them prior to this?
0:18:35 > 0:18:37- No.- No, we haven't, no.
0:18:37 > 0:18:39That sums it up, no.
0:18:39 > 0:18:41You are very relaxed about this.
0:18:41 > 0:18:44So you haven't even had a chat with the local council about the site
0:18:44 > 0:18:46and whether or not it would be a goer?
0:18:46 > 0:18:50No, we haven't, but we have sort of formed an opinion with
0:18:50 > 0:18:54the housing market and apparent housing shortage
0:18:54 > 0:18:58in this area that there would not be too many problems.
0:18:58 > 0:19:01And we have everything crossed there won't.
0:19:01 > 0:19:05Who was it that said proper planning prevents pretty poor performance?
0:19:05 > 0:19:09Well, it was certainly true here, because 11 months later,
0:19:09 > 0:19:12the plot was still a building site.
0:19:12 > 0:19:14So, what went wrong?
0:19:14 > 0:19:18We went into planning for four houses, which was two sets of semis.
0:19:18 > 0:19:21Which are perfect for the area.
0:19:21 > 0:19:24We had a lot of objections from the neighbours,
0:19:24 > 0:19:26saying that it is an overdevelopment.
0:19:26 > 0:19:28End of the day, they said four is too much.
0:19:28 > 0:19:31And the planners said, "Come back to us with two."
0:19:31 > 0:19:34So, taking that into consideration, we went in with two,
0:19:34 > 0:19:37and they said no to that as well.
0:19:37 > 0:19:41So... Leaving us no choice but to renovate the existing house.
0:19:41 > 0:19:44But I think we have done a good job of it.
0:19:44 > 0:19:48So after going from four houses to just one,
0:19:48 > 0:19:52the plan was to make that one house as high-spec and high-end as
0:19:52 > 0:19:57possible to squeeze every drop of profit from the development.
0:19:57 > 0:20:00You go back to the drawing board and just start again.
0:20:00 > 0:20:03It will get us were want to be.
0:20:03 > 0:20:06It was just not where we wanted to be originally.
0:20:06 > 0:20:10So, what effect has all this had on Yayin's half a million pound
0:20:10 > 0:20:14construction budget for the original four houses he'd hoped for?
0:20:14 > 0:20:16At the moment, I think I am on 200 plus.
0:20:16 > 0:20:20And I think by the time we'll be finished with everything,
0:20:20 > 0:20:22we will be about 250 to 300.
0:20:22 > 0:20:27Worst case then, Yayin saved £200,000 on his original
0:20:27 > 0:20:31construction budget, but he will only have one house to sell.
0:20:31 > 0:20:34When I bought it, I said to myself, "It's going to be a gamble."
0:20:34 > 0:20:37You have just got to make sure that you've got reserve to
0:20:37 > 0:20:38cover the unforeseen.
0:20:38 > 0:20:42We'll return later in the show to find out how this one house
0:20:42 > 0:20:45that should have been four turned out.
0:20:46 > 0:20:50Coming up, the upstairs-downstairs Cumbrian conundrum.
0:20:50 > 0:20:53It seems bigger up here than it is downstairs.
0:20:58 > 0:21:01And we go back to Surrey to see how the house we featured
0:21:01 > 0:21:03over a year ago finally finished up.
0:21:03 > 0:21:05And find out what it is worth.
0:21:11 > 0:21:14Back now to Tittensor, in Staffordshire,
0:21:14 > 0:21:17to catch up with Bob, a former gold miner.
0:21:17 > 0:21:21He was hoping he had struck gold by purchasing a three-bed,
0:21:21 > 0:21:24mid-terrace for £87,000.
0:21:24 > 0:21:29And he had definite plans to use his expertise in demolition.
0:21:29 > 0:21:32- Knock out the wall that is standing behind you.- Right.
0:21:33 > 0:21:37- The fairly substantial-looking wall behind me.- It is. Yeah, yeah.
0:21:37 > 0:21:38But I've got a substantial hammer.
0:21:38 > 0:21:41THEY LAUGH
0:21:41 > 0:21:43Bob sent us some pictures of his handiwork.
0:21:43 > 0:21:48He really did take Homes Under The Hammer quite literally,
0:21:48 > 0:21:52making short work of the wall, the chimney breast and chimney.
0:21:53 > 0:21:57But I think he's struck gold because it has made,
0:21:57 > 0:22:00in my view, the best room in the house.
0:22:00 > 0:22:05# They believe in me
0:22:05 > 0:22:07# Cos I believe in you
0:22:07 > 0:22:11# I need some company. #
0:22:11 > 0:22:14Bob combined two small rooms into one big one,
0:22:14 > 0:22:18and it has turned into a very hi tech space, a real centrepiece.
0:22:22 > 0:22:25Not that the lounge hasn't been transformed, too. It has.
0:22:27 > 0:22:29Also to the same high standard of finish.
0:22:32 > 0:22:36Bob estimated 12 weeks for all the refurbishment work,
0:22:36 > 0:22:39and it actually took more like 16.
0:22:40 > 0:22:43There must have been some unforeseen problems.
0:22:43 > 0:22:46After the auction, we started the refurb.
0:22:46 > 0:22:48We removed all the wallpaper
0:22:48 > 0:22:51and suddenly found that the plaster was in a terrible state.
0:22:51 > 0:22:53£2,000 later,
0:22:53 > 0:22:56we had refurbished the whole of the plaster work.
0:22:56 > 0:23:01# They believe in me. #
0:23:01 > 0:23:04The quality kitchen and re-plastering job
0:23:04 > 0:23:06put Bob over budget. Instead of 11,
0:23:06 > 0:23:10he ended up spending between £13,500 and £14,000.
0:23:10 > 0:23:15# Electricity
0:23:15 > 0:23:18# Do you feel eternal? #
0:23:18 > 0:23:21But this overspend didn't deter Bob the builder.
0:23:21 > 0:23:26He put his hard hat on and started work upstairs.
0:23:26 > 0:23:27I love using the big hammer.
0:23:29 > 0:23:33Next door to the bathroom, there was an airing cupboard,
0:23:33 > 0:23:38which was not being used because we fitted a combi boiler.
0:23:38 > 0:23:43So we installed the shower in what was originally the airing cupboard
0:23:43 > 0:23:46and made the bathroom 2ft bigger.
0:23:46 > 0:23:49We switched the toilet and the washing basin around.
0:23:49 > 0:23:53Only the bath is remaining in the same position.
0:23:53 > 0:23:55And it is now perfect.
0:23:55 > 0:23:58Bob and a few friends did all the work on weekends,
0:23:58 > 0:24:01apart from the specialist trades.
0:24:01 > 0:24:03During the week, he works as MD
0:24:03 > 0:24:05at a mirror manufacturing company,
0:24:05 > 0:24:08and the property benefited from his specialist knowledge.
0:24:10 > 0:24:14The thing that I am most pleased about is the way in which
0:24:14 > 0:24:19we've utilized every little square inch of space,
0:24:19 > 0:24:25including the secret wardrobe that nobody will notice
0:24:25 > 0:24:30when they walk into the main bedroom, which is concealed by a mirror.
0:24:30 > 0:24:34But if you touch the mirror on the side,
0:24:34 > 0:24:37then it springs open and you've got a wardrobe.
0:24:39 > 0:24:42So, as they say in the States, "Let's do the math."
0:24:42 > 0:24:45Bob paid £87,000 at auction.
0:24:45 > 0:24:49Worst case on the refurbishment budget was 14,000,
0:24:49 > 0:24:51making a grand total of 101,000.
0:24:51 > 0:24:52Was it worth it?
0:24:57 > 0:25:02I'm very happy with what I paid for the property.
0:25:02 > 0:25:04I'm happy with what I spent on it.
0:25:04 > 0:25:08And it will be interesting to find out the valuation.
0:25:08 > 0:25:11Well, let's do just that.
0:25:11 > 0:25:14We invited two local estate agents along to check out the property
0:25:14 > 0:25:18and give us their thoughts. And yes, Bob, the wait is over.
0:25:18 > 0:25:20Valuations, too.
0:25:20 > 0:25:24But first things first, initial impressions.
0:25:24 > 0:25:25My first impressions are,
0:25:25 > 0:25:28I'm very, very impressed with the finish
0:25:28 > 0:25:30and with the work that has been done.
0:25:30 > 0:25:33I think the owner has done a tremendous job in renovating
0:25:33 > 0:25:36the property. It's done to a very high standard.
0:25:36 > 0:25:40Re-plastered throughout, with good quality kitchens and bathrooms.
0:25:40 > 0:25:41I think it is fantastic.
0:25:41 > 0:25:45So, if they were selling it, what highlights will go in the brochure?
0:25:45 > 0:25:50The main selling point for me is the size of the property.
0:25:50 > 0:25:52It is very, very spacious.
0:25:52 > 0:25:57And also the amount of money that the developer has spent doing
0:25:57 > 0:26:00the place up. It is a very, very high-end finish.
0:26:00 > 0:26:04I like the fact that he has knocked through the kitchen and the dining
0:26:04 > 0:26:08room to make a modern kitchen-diner, which is very popular with families.
0:26:08 > 0:26:11Anything they didn't like or would have done differently?
0:26:11 > 0:26:14I would not have done anything differently internally.
0:26:14 > 0:26:18The only slight negative I can see is that there isn't any
0:26:18 > 0:26:19off-road parking.
0:26:19 > 0:26:22The only thing that I would have perhaps done would have been
0:26:22 > 0:26:28trying to provide off-road parking for any potential family purchasers.
0:26:28 > 0:26:32We did consider dropping the curb,
0:26:32 > 0:26:36but the expense in doing so at this present time
0:26:36 > 0:26:39didn't warrant doing it straightaway.
0:26:39 > 0:26:41This is a stunning transformation
0:26:41 > 0:26:46and I think Bob's £101,000 has been well spent.
0:26:46 > 0:26:47But will the agents agree?
0:26:47 > 0:26:49If we were to market the property,
0:26:49 > 0:26:54I would expect to achieve a figure in the region of £135,000.
0:26:54 > 0:26:58We would recommend an asking price of £135,000.
0:26:58 > 0:27:02I think that is a very, very accurate assumption.
0:27:02 > 0:27:04Very pleased with that.
0:27:04 > 0:27:07That would mean a potential profit of £34,000,
0:27:07 > 0:27:10minus the usual taxes and expenses.
0:27:10 > 0:27:13But Bob's preferred option is to rent.
0:27:14 > 0:27:18If we were to let the property, I would anticipate a rental figure
0:27:18 > 0:27:23in the region of £550 to £575 per calendar month.
0:27:23 > 0:27:28We would recommend £550 to around about £575
0:27:28 > 0:27:30per calendar month.
0:27:30 > 0:27:33Yeah, that's bang on. That's what I was expecting.
0:27:33 > 0:27:37Bob's looking at a 6.8% yield. Result!
0:27:37 > 0:27:41I'm very pleased with the property on the whole.
0:27:41 > 0:27:42I'm pleased with the outcome,
0:27:42 > 0:27:47with the figure that the agents have given to us.
0:27:47 > 0:27:51And I think that it has turned out really well.
0:27:51 > 0:27:52It has turned out really well.
0:27:52 > 0:27:54Oh, one thing I meant to ask,
0:27:54 > 0:27:58what happened to that round window that I wanted to make a feature of?
0:27:58 > 0:28:01Um... Unfortunately, we didn't make a feature of the round window.
0:28:01 > 0:28:04It still looks great from the outside,
0:28:04 > 0:28:08but unfortunately, that round window is now a cupboard.
0:28:09 > 0:28:13Well, I'm not going to argue, I know what is behind Bob's success.
0:28:13 > 0:28:15# If I had a hammer
0:28:15 > 0:28:18# I'd hammer in the morning
0:28:18 > 0:28:20# I'd hammer in the evening
0:28:20 > 0:28:24# All over this land! #
0:28:31 > 0:28:35This is Whitehaven, on the Cumbrian coast,
0:28:35 > 0:28:39once a group of mining villages that came together to form a town.
0:28:39 > 0:28:43And one of these villages, now a suburb, is Hensingham.
0:28:43 > 0:28:47Well, one claim to fame for which Hensingham can be justifiably
0:28:47 > 0:28:52proud is that it is home to the first NHS-built hospital
0:28:52 > 0:28:56in the UK, opened by the Queen Mum herself in 1964.
0:28:56 > 0:29:01There are other NHS hospitals, of course, but this one was the first
0:29:01 > 0:29:04to be custom built after the creation of the NHS,
0:29:04 > 0:29:06and heralded a new era.
0:29:06 > 0:29:08Other major employers around here
0:29:08 > 0:29:11include the Sellafield processing plant
0:29:11 > 0:29:15and, being on the outskirts of the lakes, the tourist industry.
0:29:15 > 0:29:18So, what brings me to these parts today?
0:29:18 > 0:29:21Well, it is a two-bedroom, mid-terrace with a guide
0:29:21 > 0:29:26price of £35,000 to £45,000. Quite a large bracket there.
0:29:26 > 0:29:30It is either going to be really good or...not.
0:29:30 > 0:29:33This is a fairly typical suburban street
0:29:33 > 0:29:36from the turn of the 20th century,
0:29:36 > 0:29:40with its reassuring ascending terrace and flat-fronted houses,
0:29:40 > 0:29:43though most have been rendered to look a lot more modern.
0:29:43 > 0:29:44Ah.
0:29:45 > 0:29:48Well, it would have been nice to have a floor,
0:29:48 > 0:29:51not generally regarded as an optional extra.
0:29:51 > 0:29:55But it looks like someone has been an eager beaver
0:29:55 > 0:29:59and a lot of the stripping out has been done.
0:29:59 > 0:30:00And that is quite good
0:30:00 > 0:30:03for seeing some of the potential problems.
0:30:03 > 0:30:06And straightaway, look at the difference here, in between the
0:30:06 > 0:30:09dry concrete and the plaster,
0:30:09 > 0:30:14and this band of darker coloured cement.
0:30:14 > 0:30:16Basically, that whole wall is damp.
0:30:16 > 0:30:20And it looks like the same is true for a lot of these walls.
0:30:20 > 0:30:21So, a damp proof course
0:30:21 > 0:30:25is one of the first things you're going to have to invest in.
0:30:25 > 0:30:28But a fairly standard layout.
0:30:28 > 0:30:31Stairs in the middle there, leading up to the bedrooms.
0:30:31 > 0:30:35And then through into your rear sort of reception area.
0:30:35 > 0:30:39And look at this floor, wow!
0:30:39 > 0:30:41Flagstone, natural, beautiful.
0:30:41 > 0:30:44If you polish it a bit, it will be amazing.
0:30:44 > 0:30:47The only slight problem is, I very much doubt,
0:30:47 > 0:30:49like the rest of the property, there's any damp proof course here.
0:30:49 > 0:30:53So beautiful though it is, the practicalities are,
0:30:53 > 0:30:55it is probably going to have to come up and...
0:30:55 > 0:30:56It probably won't go down again.
0:30:56 > 0:31:02Whatever you do, don't forget, these stones are now worth a lot of money.
0:31:02 > 0:31:04So, let's have a look upstairs.
0:31:11 > 0:31:14So, upstairs, two bedrooms - one on that side and one...
0:31:14 > 0:31:20That's weird, it seems bigger up here than it is downstairs.
0:31:23 > 0:31:25How can that be?
0:31:25 > 0:31:28But before I go downstairs again to work that one out,
0:31:28 > 0:31:30let's check out the bathroom on the way.
0:31:30 > 0:31:34Well, it's upstairs, which is good,
0:31:34 > 0:31:37but it is accessed through a bedroom.
0:31:37 > 0:31:39Which is bad.
0:31:40 > 0:31:43And you can make your own judgments on the quality of the plastering.
0:31:43 > 0:31:45And tiling.
0:31:45 > 0:31:47Oh, and the fitting.
0:31:47 > 0:31:49Don't get me wrong, I'm all for ensuite bathrooms,
0:31:49 > 0:31:52but when it is the only one in the house...
0:31:54 > 0:31:56You get my meaning.
0:31:56 > 0:31:57Well, the answer to that conundrum
0:31:57 > 0:32:01of the bedrooms seeming bigger than the house is here,
0:32:01 > 0:32:04because actually what you've got is a flying freehold.
0:32:04 > 0:32:07Above me here is that bedroom.
0:32:07 > 0:32:09Now, that does throw up all sorts of issues,
0:32:09 > 0:32:12especially when it comes to the legal status of this area here.
0:32:12 > 0:32:15So you do need to have it checked out by your solicitor
0:32:15 > 0:32:17before you buy.
0:32:17 > 0:32:20This two-bed terrace does need a fair bit of work, which is,
0:32:20 > 0:32:22of course, already in progress.
0:32:22 > 0:32:26But does that £35,000 to £45,000 guide price allow for a profit?
0:32:28 > 0:32:32The auctioneer who sold the property has come to give us his thoughts.
0:32:32 > 0:32:36This is a traditional, small, two-bedroom, terraced property.
0:32:36 > 0:32:38You'd... You know,
0:32:38 > 0:32:40the size is the size that you'd expect.
0:32:40 > 0:32:44This obviously needs a complete refurbishment.
0:32:44 > 0:32:49But, you know, once finished, it will be very popular.
0:32:49 > 0:32:53Um... There are things, perhaps, that you might want to alter.
0:32:53 > 0:32:55You know, you've got the...
0:32:55 > 0:32:57It's quite common to have the bathroom off
0:32:57 > 0:33:00the smaller back bedroom.
0:33:00 > 0:33:04But there's room off the front bedroom to perhaps put an en-suite.
0:33:04 > 0:33:08To give you the choice of bathrooms upstairs.
0:33:08 > 0:33:12And once that's done, refurbished - new kitchen, new bathroom,
0:33:12 > 0:33:16central heating, windows, new wall coverings, floor coverings.
0:33:16 > 0:33:19I think it'll make a really tidy little house.
0:33:19 > 0:33:23So, what value would he put on this property?
0:33:23 > 0:33:27If this property was exposed to the resale market,
0:33:27 > 0:33:33fully done up, good spec, I think it would be in the region of £85,000.
0:33:33 > 0:33:36And if the new owner fully refurbishes this property,
0:33:36 > 0:33:39what could the rental income be?
0:33:39 > 0:33:42I think you could achieve in the region of £400 per calendar month.
0:33:42 > 0:33:45Well, obviously, some work required to sort this place out,
0:33:45 > 0:33:49but it really is that low guide price and potential yield
0:33:49 > 0:33:53which makes this place a very interesting opportunity.
0:33:53 > 0:33:55Let's see who agreed when it went under the hammer.
0:33:55 > 0:33:57Situated in popular coastal town,
0:33:57 > 0:34:01ideal for an investor or first-time buyer.
0:34:01 > 0:34:04I'd like a bit on this one. Maybe a bit more than that.
0:34:04 > 0:34:06£35,000 to £45,000.
0:34:06 > 0:34:09Let's see 35.
0:34:09 > 0:34:1030.
0:34:10 > 0:34:13It's got to be worth £30,000.
0:34:13 > 0:34:1630, you're in. One bid might get it.
0:34:16 > 0:34:18At £30,000, then, for the first time.
0:34:19 > 0:34:21At £30,000 for the second time...
0:34:23 > 0:34:2531 here.
0:34:25 > 0:34:2732. 33.
0:34:28 > 0:34:32Thinking about it. With you at the rear at £32,000.
0:34:32 > 0:34:3433. 34.
0:34:34 > 0:34:3635.
0:34:36 > 0:34:39Thinking about 35. With you at £34,000.
0:34:39 > 0:34:42First time at 34...
0:34:42 > 0:34:45Second time at 34...
0:34:45 > 0:34:47Back in at 35.
0:34:47 > 0:34:4936. Shake of the head.
0:34:49 > 0:34:51With you at 35 on the right-hand side.
0:34:51 > 0:34:55Are we all done? At £35,000. First time, then.
0:34:55 > 0:34:58It's in the room, ladies and gentlemen. Second time.
0:34:58 > 0:35:01Third and final time now, £35,000.
0:35:01 > 0:35:03All done and all out.
0:35:03 > 0:35:06Well, that's that. One of The Proclaimers.
0:35:06 > 0:35:07Cheeky!
0:35:11 > 0:35:14But that final bid of just £35,000 made by John
0:35:14 > 0:35:17and Alan is certainly something to sing about.
0:35:17 > 0:35:20# But I would walk 500 miles
0:35:20 > 0:35:24# And I would walk 500 more... #
0:35:24 > 0:35:28They didn't have to walk 500 miles either, as the friends are local,
0:35:28 > 0:35:32and this is their first property development venture.
0:35:33 > 0:35:38Alan and John plan to re-plaster, re-wire and re-plumb,
0:35:38 > 0:35:42adding a new damp proof course and central heating system.
0:35:42 > 0:35:45In fact, they're so keen, they've already put wooden packing
0:35:45 > 0:35:50down by the back door and stripped the wallpaper to inspect the walls.
0:35:50 > 0:35:52You've been busy already!
0:35:52 > 0:35:53We've done a bit, yeah.
0:35:53 > 0:35:57Just wanted to see what was involved to see how much it was going to cost,
0:35:57 > 0:35:59you know. Without going too berserk.
0:35:59 > 0:36:02- Better or worse than you thought? - Bff...
0:36:02 > 0:36:07- Technical term for...?- I don't know what we expected, really.- Right.
0:36:07 > 0:36:11- Because we didn't view it before. - You didn't view it before?- No.
0:36:11 > 0:36:14- Have you watched the show? - Only about 1,000 times.
0:36:14 > 0:36:16I've watched the programme and,
0:36:16 > 0:36:19"How can people buy a property they haven't even viewed?"
0:36:19 > 0:36:21And then we did. I live around the corner, I didn't know where it was.
0:36:21 > 0:36:23I honestly... I'd never heard of this street.
0:36:23 > 0:36:26- Alan's lived here his whole life and...- I hadn't heard of it.
0:36:26 > 0:36:29- So, you're from the area, you live very close by.- Yeah, I do, yeah.
0:36:29 > 0:36:32- And you bought a house in the street you didn't even know existed.- Yep.
0:36:32 > 0:36:34- Pretty much.- Pretty much, yeah.
0:36:34 > 0:36:37- Yeah. We had trouble finding it. - You couldn't find it?
0:36:37 > 0:36:39- You couldn't find the house you bought?- Yeah.
0:36:39 > 0:36:43THEY LAUGH
0:36:43 > 0:36:45Well, that is a new one on me.
0:36:45 > 0:36:47At least these two managed to find friendship
0:36:47 > 0:36:49while working at a catalogue company.
0:36:49 > 0:36:55- Break times became our chats about doing houses like these.- That's it?
0:36:55 > 0:37:00It took us six years to get there, mind, talking about it,
0:37:00 > 0:37:02doing a lot of research on it.
0:37:02 > 0:37:06And we just never had that jump in us to take it on.
0:37:06 > 0:37:10- This is number one?- Number one. - So, years of research and planning.
0:37:10 > 0:37:14- Six years.- Honestly, yeah. - And when it came down to it...
0:37:14 > 0:37:16We didn't even... THEY LAUGH
0:37:16 > 0:37:19We hadn't even seen the house we bought.
0:37:19 > 0:37:22- I could see where that was leading to.- It can only go up.
0:37:22 > 0:37:27- It can only go up.- Unfurnished, I would have paid 45 for this.- Right.
0:37:27 > 0:37:32- Not 35. So, honestly, I think we're a tad in front already.- Yeah.
0:37:32 > 0:37:34It is just going to be how much we make, really.
0:37:34 > 0:37:37Without being overconfident, I really do think we've done well.
0:37:37 > 0:37:40So, how is it between you? Are you doing this as a partnership?
0:37:40 > 0:37:43- Is it 50-50, all in?- Yeah.
0:37:43 > 0:37:46- Sharing the responsibility and sharing the work?- Absolutely, yeah.
0:37:46 > 0:37:48Well, not sharing so much of the work.
0:37:48 > 0:37:51- Can you imagine me doing more of it? - Yeah.- He's the brains.
0:37:51 > 0:37:54Is that literally how it is going to work? You end up doing...?
0:37:54 > 0:37:57Yeah, I'll do most of the work, John's more of the organising
0:37:57 > 0:37:59and the brains behind the operation.
0:37:59 > 0:38:02I'll mix the cement and find the ladders and things like that.
0:38:02 > 0:38:06- How do you think it's going to work you guys working together?- Great.
0:38:06 > 0:38:09- We get on really well.- We bounce off each other.- Yeah, we do.
0:38:09 > 0:38:13We've got similar interests and, you know, we really do get on well.
0:38:13 > 0:38:16- I think he's one of my long-lost sons, but I don't know.- Aw!
0:38:16 > 0:38:19Everyone sees us on the streets and they say it's father and son.
0:38:19 > 0:38:21They get a shock when we say we're not.
0:38:21 > 0:38:24I see why they get mistaken for father and son,
0:38:24 > 0:38:28but here's how the partnership will hopefully really work.
0:38:28 > 0:38:3270-year-old John, who's retired, will provide the brains,
0:38:32 > 0:38:35while the much younger Alan, who has got a full-time job,
0:38:35 > 0:38:38will provide the brawn evenings and weekends.
0:38:40 > 0:38:42Besides the work listed so far,
0:38:42 > 0:38:44they're going to fit a new kitchen, knock down this lean-to
0:38:44 > 0:38:48conservatory, tidy up the toilets at the end of the kitchen
0:38:48 > 0:38:50and decorate.
0:38:50 > 0:38:54Something tells me they might overrun their three-month timescale.
0:38:54 > 0:38:57But there is good news on the bathroom front -
0:38:57 > 0:39:01there's going to be a front bathroom.
0:39:01 > 0:39:04- We're going to put an en-suite on the front bedroom.- OK.
0:39:04 > 0:39:07With a corner shower. We're going to put a corner shower in there.
0:39:07 > 0:39:10And then the small bedroom with the en-suite is going to
0:39:10 > 0:39:12stay as a bath, and then they've got the option of two.
0:39:12 > 0:39:16Oh, wow. It sounds like you're doing this to a fairly high standard.
0:39:16 > 0:39:18I think it is worth going the extra mile.
0:39:18 > 0:39:21- I think it will make good money. - How much do you plan to spend on it?
0:39:21 > 0:39:25- I think up to about 15. - Between ten and 15.
0:39:25 > 0:39:28How much do you think you might get back if you were to resell it?
0:39:28 > 0:39:31- Is that the plan, to resell it? - Yeah.- Yeah.- Sell it back on.
0:39:31 > 0:39:34I think we could get 85 maybe for it.
0:39:34 > 0:39:39So potentially, 30-odd grand profit.
0:39:39 > 0:39:42Yeah, could be great for our first one. I think we're very lucky.
0:39:42 > 0:39:45- So, if this is a success, will you do other projects?- Yes.
0:39:45 > 0:39:48We'd like to do three a year, if that is not too ambitious.
0:39:48 > 0:39:52- What would your ambition be, Alan? - To do this full-time.- Yeah?- Yeah.
0:39:52 > 0:39:55As fast as we can... Able to go full-time, that's it.
0:39:55 > 0:39:58Obviously, I've got a family of my own, so I can't go full-time
0:39:58 > 0:40:00at the minute.
0:40:00 > 0:40:02But as soon as I get the chance to do it, I'd love to.
0:40:02 > 0:40:04Well, listen, congratulations to you both.
0:40:04 > 0:40:07I really look forward to seeing how you transform it.
0:40:07 > 0:40:09- Thank you.- Cheers.
0:40:09 > 0:40:13So, Alan and John, embarking on their first property
0:40:13 > 0:40:16development project together.
0:40:16 > 0:40:18And breaking one of the golden rules
0:40:18 > 0:40:21about buying at auction by not seeing the place beforehand.
0:40:21 > 0:40:25However, it does seem like they've done OK in this instance.
0:40:25 > 0:40:27And it is good to see the enthusiasm.
0:40:27 > 0:40:30You can find out how they get on later in the show.
0:40:33 > 0:40:37Time has passed and we are hoping that money has been well spent.
0:40:37 > 0:40:38Yes, it would be great
0:40:38 > 0:40:42if all those fine sounding plans have turned out well.
0:40:42 > 0:40:45Have they done any work? Let's go back and find out.
0:40:47 > 0:40:48Back now to Morden, in Surrey,
0:40:48 > 0:40:54where this rundown house was bought by Yayin for 281,000.
0:40:54 > 0:40:56So, why have you decided to put both of your heads
0:40:56 > 0:40:58together on a project like this?
0:40:58 > 0:41:01We actually came together five years ago with a mutual
0:41:01 > 0:41:03interest in a property in Stoke.
0:41:03 > 0:41:06Certain aspects of our personalities
0:41:06 > 0:41:10have prevented us forming a formal partnership.
0:41:10 > 0:41:14They planned to build four semidetached houses on the plot,
0:41:14 > 0:41:16but the planners had different ideas.
0:41:16 > 0:41:18The compromise was to extend the existing
0:41:18 > 0:41:21house into a four-bedroom detached dwelling.
0:41:21 > 0:41:22Last time we saw them,
0:41:22 > 0:41:27they were 11 months into the build and it was still not finished.
0:41:27 > 0:41:29Now five months further on, we are back,
0:41:29 > 0:41:31and it's finished!
0:41:32 > 0:41:38But was the work done within the £280,000 estimated budget?
0:41:38 > 0:41:43I totally spent about 325,000 to finish off the works in the house.
0:41:43 > 0:41:45That was including the extension to the house
0:41:45 > 0:41:48and the detached garage as well.
0:41:48 > 0:41:53The remarkable thing is that, apart from the new garage and extension to
0:41:53 > 0:41:57the right of the house, everything else has the old house at its heart.
0:41:57 > 0:42:00There are some clues - three small windows above the lean-to
0:42:00 > 0:42:03extension reveal the roots of the house.
0:42:06 > 0:42:09The old house had to stay because we didn't have planning to
0:42:09 > 0:42:11actually bring the old house down,
0:42:11 > 0:42:15but all we did was use the old house as it was and then
0:42:15 > 0:42:19knocked down all the sidewall where we were doing the extension to it.
0:42:19 > 0:42:22And then renovated all the brickwork to a fresh new
0:42:22 > 0:42:24brickwork on the outside. So, basically,
0:42:24 > 0:42:28we covered the existing old house with new brickwork all along.
0:42:28 > 0:42:31# God bless you
0:42:32 > 0:42:37# You make me feel brand-new
0:42:37 > 0:42:42# For God blessed me with you... #
0:42:42 > 0:42:46It's an incredible transformation.
0:42:46 > 0:42:50And the side extension certainly adds significantly to the upstairs
0:42:50 > 0:42:52and the downstairs square footage.
0:42:52 > 0:42:55The only thing that is existing from the old house is pretty much
0:42:55 > 0:42:58the perimeter of the house, which were the three walls.
0:42:58 > 0:43:00The fourth wall has got to be knocked down because we added
0:43:00 > 0:43:02an extension to the fourth side.
0:43:02 > 0:43:06So, it started with the brick, with all the new brickwork,
0:43:06 > 0:43:09new heating, new plumbing, new electrics.
0:43:09 > 0:43:12The house didn't even have electric water or gas connections.
0:43:12 > 0:43:16So, all of them we had to reinstate or apply for new
0:43:16 > 0:43:19connections for every single thing, and all of them were new.
0:43:19 > 0:43:24For Andrew, the new look didn't just end with the house itself.
0:43:24 > 0:43:27I am most pleased with the grounds, actually.
0:43:27 > 0:43:28You know, when we bought it,
0:43:28 > 0:43:30the boundaries were a little bit sketchy.
0:43:30 > 0:43:35Once they'd been established and sort of the landscaping has gone in,
0:43:35 > 0:43:41I think the visuals of the property are far in excess
0:43:41 > 0:43:43of what we ever anticipated.
0:43:43 > 0:43:44And I think that's...
0:43:44 > 0:43:47If I'm being mercenary, that has added value to it as well.
0:43:47 > 0:43:52Which was just a hidden gem, really. We never anticipated that.
0:43:52 > 0:43:55And they never anticipated planning taking so long either.
0:43:55 > 0:44:00The original timescale for the four semis was approximately six months.
0:44:00 > 0:44:03We now double that and when we last saw it inside,
0:44:03 > 0:44:05the utility and kitchen looked like this.
0:44:05 > 0:44:08So, has it and worth the wait?
0:44:08 > 0:44:12# Cos I will wait I will wait for you...
0:44:12 > 0:44:15The kitchen boasts high-spec granite worktops.
0:44:15 > 0:44:19# I will wait I will wait for you
0:44:22 > 0:44:27# And I will wait I will wait for you
0:44:27 > 0:44:30As does the front-of-house utility.
0:44:30 > 0:44:34# And I will wait I will wait for you
0:44:34 > 0:44:38The bright, spacious hallway has an under stairs loo.
0:44:38 > 0:44:41# I will wait I will wait for you
0:44:41 > 0:44:45The lounge, too, is fitted to a very high specification.
0:44:45 > 0:44:49# And I will wait I will wait for you
0:44:49 > 0:44:53The family and dining room has patio doors to the rear.
0:44:53 > 0:44:56# I will wait I will wait for you... #
0:45:00 > 0:45:01At the top of the stairs,
0:45:01 > 0:45:05the family bathroom on the left is fitted with high quality units.
0:45:11 > 0:45:14All the bedrooms have fitted, mirrored wardrobes.
0:45:14 > 0:45:18The one Andrew favours as the master bedroom has ensuite facilities,
0:45:18 > 0:45:21too, as does the bedroom Yayin favours as the master.
0:45:26 > 0:45:30# Cos I will wait I will wait for you... #
0:45:30 > 0:45:33And the smaller bedrooms, with their built-in wardrobes,
0:45:33 > 0:45:37are a reasonable size, too. So, was it worth the wait?
0:45:37 > 0:45:41Was it worth the £281,000 paid at auction
0:45:41 > 0:45:45and the £325,000 paid for refurbishing?
0:45:47 > 0:45:50Well, there is only one way to find out.
0:45:51 > 0:45:55You guessed it, we've invited two local estate agents round to
0:45:55 > 0:45:59view the completed property and give us their thoughts.
0:45:59 > 0:46:02It's a tough call, because there are no properties like this to
0:46:02 > 0:46:05compare it with in the surrounding area.
0:46:05 > 0:46:08Andrew and Yayin have created a one-off here.
0:46:08 > 0:46:12So, Yayin paid 281,000 at auction.
0:46:12 > 0:46:15And after the failed planning for four dwellings,
0:46:15 > 0:46:19his only option was to extend and renovate the old house.
0:46:19 > 0:46:22Will it meet the agents' approval?
0:46:22 > 0:46:25I think the layout, done a really good job of it,
0:46:25 > 0:46:28well-proportioned bedrooms, en suites upstairs,
0:46:28 > 0:46:31good living space downstairs. It fits perfectly for the type of person
0:46:31 > 0:46:33that would purchase this house.
0:46:33 > 0:46:38The transformation since the actual first instance of viewing it
0:46:38 > 0:46:39and knowing the building
0:46:39 > 0:46:43very well from old is just tremendous.
0:46:43 > 0:46:46Yayin and Andrew have always been clear that they wouldn't
0:46:46 > 0:46:48consider renting the property out,
0:46:48 > 0:46:51but let's find out if they are tempted now by the figures.
0:46:51 > 0:46:55If they rent this house out, they'd be looking at about £2,000,
0:46:55 > 0:46:58£2,500 per calendar month.
0:46:58 > 0:47:00For a rental, this property would secure
0:47:00 > 0:47:05a sum of circa £2,300 to £2,500 per month.
0:47:05 > 0:47:07That would give Yayin
0:47:07 > 0:47:10a yield on his investment of just over 4.5%.
0:47:10 > 0:47:12How do they feel about that?
0:47:12 > 0:47:14If they said double the amount for the rental, you know,
0:47:14 > 0:47:18it still wouldn't be an option. We are committed to selling.
0:47:18 > 0:47:22That was always the game plan, and it still is.
0:47:22 > 0:47:26So, what is taken into account for getting a valuation for sale?
0:47:26 > 0:47:29Is a unique home within its surroundings.
0:47:29 > 0:47:31It is beautifully laid out
0:47:31 > 0:47:34and the fact that it is detached is very unusual for this area.
0:47:34 > 0:47:37This is a home for an owner-occupier,
0:47:37 > 0:47:39somebody who's going to be quite discerning.
0:47:39 > 0:47:43And as such, the standard needs to be extremely good.
0:47:43 > 0:47:47Also the area is close to London, but it isn't in London,
0:47:47 > 0:47:50so will the property command London prices?
0:47:52 > 0:47:54Time to find out the agents' conclusions.
0:47:54 > 0:47:59Remember, Yayin has spent £606,000 so far.
0:47:59 > 0:48:02Will he be able to manage a margin in Morden?
0:48:02 > 0:48:06In order to sell the property, the owner should market
0:48:06 > 0:48:10for offers in excess of the figure of £950,000.
0:48:10 > 0:48:15I think this house is worth £950,000 to £1,000,000.
0:48:15 > 0:48:18That means Yayin could be in for a potential profit
0:48:18 > 0:48:22of 356,000, minus taxes and fees.
0:48:22 > 0:48:24Quite happy with what the values are.
0:48:24 > 0:48:26We will have to see what it sells for,
0:48:26 > 0:48:28but quite happy to see what they're saying.
0:48:28 > 0:48:32Makes you realise it is worth going the extra mile by putting
0:48:32 > 0:48:37the better spec in rather than just the off-the-counter stuff.
0:48:37 > 0:48:39So, yeah, it's great to hear it.
0:48:39 > 0:48:43But I reckon Yayin could have got a possible extra £90,000
0:48:43 > 0:48:47profit if he had built the four houses he was planning to.
0:48:47 > 0:48:50So, have there been lessons learned?
0:48:50 > 0:48:53The main thing is, we should have approached local planners before,
0:48:53 > 0:48:56and we have taken their advice. But it was a gamble.
0:48:56 > 0:48:58That's right, it was a gamble.
0:48:58 > 0:49:01And, you know, you've got to bear mind that with auction properties,
0:49:01 > 0:49:05you don't often have the time to get the answers back from the relevant
0:49:05 > 0:49:09planners before the day of the sale. So you do have to go to a degree
0:49:09 > 0:49:12of relying on gut feeling and if you think it's going to go right.
0:49:12 > 0:49:16And, yeah, you go out with your ideas of where you wanted to be.
0:49:16 > 0:49:18But sometimes, as in this case, it doesn't happen.
0:49:18 > 0:49:21But, you know, we are still happy with what we've got.
0:49:23 > 0:49:28In Whitehaven, on the Cumbrian coast, we met John, who also
0:49:28 > 0:49:32was very happy with what he got when he bought this two-bed mid-terrace.
0:49:32 > 0:49:36He paid £35,000 at auction as a joint project with former
0:49:36 > 0:49:38work colleague Alan.
0:49:38 > 0:49:43And they hope that with £15,000 and a three-month timescale,
0:49:43 > 0:49:47they could refurbish it and turn it around for the resale market.
0:49:47 > 0:49:50And they weren't hanging around, because when we saw it, a few weeks
0:49:50 > 0:49:55after completion on the auction purchase, work was well under way.
0:49:55 > 0:49:58Ah.
0:49:58 > 0:50:01Well, it would have been nice to have a floor.
0:50:01 > 0:50:03Yes, lacking in floors, damp proofing, central heating...
0:50:03 > 0:50:07Well, let's face it, most things that make a house a home.
0:50:07 > 0:50:11So, it was clear Alan and John weren't holding back.
0:50:11 > 0:50:14This was going to be a comprehensive refurbishment.
0:50:15 > 0:50:17So, tell me about you two, then.
0:50:17 > 0:50:20I came to work at the same place as you. And we got put
0:50:20 > 0:50:21together on the maintenance.
0:50:21 > 0:50:25Break times became our chats about doing houses like these.
0:50:25 > 0:50:29It took us six years to get there, mind, talking about it,
0:50:29 > 0:50:31doing a lot of research on it.
0:50:31 > 0:50:35And we just never had that jump in us to take it on.
0:50:35 > 0:50:39So, after six years, it seemed like now was there a moment.
0:50:39 > 0:50:41# Go ahead and try now
0:50:41 > 0:50:45# Or how you gonna find out
0:50:45 > 0:50:48# That life has got predictable
0:50:48 > 0:50:50# Go on, do something wonderful
0:50:50 > 0:50:51# The first step is the hardest
0:50:51 > 0:50:53# You'll be safe without a harness
0:50:53 > 0:50:55# So jump...
0:50:55 > 0:50:58So, having finally taking the leap,
0:50:58 > 0:51:01did they crash down to earth?
0:51:02 > 0:51:06Well, 10.5 months later, we're back to find out.
0:51:06 > 0:51:08# If the thought is terrifying
0:51:08 > 0:51:10# The risk is really frightening
0:51:10 > 0:51:12# There's no need to play it safe
0:51:12 > 0:51:14# Just take a leap of faith
0:51:14 > 0:51:18# And jump
0:51:21 > 0:51:24# Oh-oh
0:51:26 > 0:51:29# You should leave without a warning
0:51:29 > 0:51:32# And jump, fly
0:51:32 > 0:51:34# Let your feet leave the ground
0:51:34 > 0:51:36# Step into the sky
0:51:36 > 0:51:40# And jump, high...
0:51:40 > 0:51:44Well, the property has certainly jumped up a notch or two.
0:51:47 > 0:51:49And nowhere more so than in the kitchen.
0:51:49 > 0:51:53# Without a harness, so jump. #
0:51:53 > 0:51:57Well, the kitchen. We had a bit of a problem down this side with
0:51:57 > 0:51:58the room for the cupboards
0:51:58 > 0:52:01because originally we had a window on the left-hand side,
0:52:01 > 0:52:03which would have stopped us putting our cooker hood up,
0:52:03 > 0:52:05so we decided to put a bigger window on the right,
0:52:05 > 0:52:06lets a lot of light in.
0:52:06 > 0:52:10And we've a little utility around the back with a toilet
0:52:10 > 0:52:12and a hand basin and a worktop.
0:52:12 > 0:52:14Downstairs is now looking great,
0:52:14 > 0:52:17but what about upstairs and that slightly odd layout with
0:52:17 > 0:52:20the bathroom only accessible through the bedroom?
0:52:22 > 0:52:26Well, not only have they fully refurbished everything,
0:52:26 > 0:52:28by clever re-jigging the larger room,
0:52:28 > 0:52:32they have given both bedrooms, in effect, an en-suite.
0:52:36 > 0:52:39Well, this is my favourite part of the redevelopment.
0:52:39 > 0:52:41When we came, we realised it was a nice,
0:52:41 > 0:52:45big bedroom and there was plenty of room to create an en-suite.
0:52:45 > 0:52:48So this is what we did - made it a good size,
0:52:48 > 0:52:49put quality fittings in.
0:52:49 > 0:52:52Anybody that comes and sees it says, "Wow, this is really nice."
0:52:52 > 0:52:54That was the idea we wanted -
0:52:54 > 0:52:58to create a wow factor that people will be pleased with.
0:52:58 > 0:53:01I just keep wanting to jump in there myself, but I better not.
0:53:01 > 0:53:03# You know these arms can bring you up
0:53:03 > 0:53:06# Jump for my love! #
0:53:06 > 0:53:10Well, he certainly jumped in feet first with this house.
0:53:10 > 0:53:13But all that hard work seems like it has paid off.
0:53:15 > 0:53:18Two ensuite bedrooms in a mid-terraced house,
0:53:18 > 0:53:21including a new toilet at the end of the kitchen.
0:53:21 > 0:53:24I think that is going to impress in the resale market,
0:53:24 > 0:53:27along with all the other improvements inside and out.
0:53:28 > 0:53:32Out the back, where we've done a bit of work on the wall,
0:53:32 > 0:53:35the boundary wall between the property and the allotment.
0:53:35 > 0:53:39It was all pulled over, so we built our wall up there.
0:53:39 > 0:53:43And then we had a neighbour to see if we could do theirs, which we did.
0:53:43 > 0:53:46And then another neighbour asked if we could carry it on
0:53:46 > 0:53:48and finish their wall off as well. Which we did.
0:53:48 > 0:53:50Which wasn't bad, cos it worked out well
0:53:50 > 0:53:53cos we got a bit of money in the old pocket as well.
0:53:53 > 0:53:56And finally, we've got our project mascot, Nobby,
0:53:56 > 0:53:59which has helped us through the project.
0:53:59 > 0:54:03When we were getting down, we looked at Nobby's smiling face
0:54:03 > 0:54:06and he cheered us on to get it finished, really.
0:54:06 > 0:54:08So he's staying there now, permanently.
0:54:08 > 0:54:13# I want to tell you a story
0:54:13 > 0:54:16# About a little man
0:54:16 > 0:54:18# If I can
0:54:18 > 0:54:20# A no-named grimble grumble... #
0:54:20 > 0:54:22RECORD SCRATCH
0:54:22 > 0:54:25No, he's called Nobby, and you're best not to upset him.
0:54:25 > 0:54:28Whilst the mascot of the walls is going up outside,
0:54:28 > 0:54:31inside some of the walls were coming down.
0:54:31 > 0:54:35We started off by thinking that wall would only need to be patched
0:54:35 > 0:54:37and we can skim that one.
0:54:37 > 0:54:40And as days went on, you know, he'd come at night
0:54:40 > 0:54:42and I'd have demolished another wall.
0:54:42 > 0:54:46So, a lot of work went into getting the walls sorted.
0:54:46 > 0:54:49He was doing the demolishing and I was doing the rebuilding.
0:54:49 > 0:54:52All this extra work has meant their timescale
0:54:52 > 0:54:55slipped from the planned three months to 10.5 months.
0:54:55 > 0:54:58But this was their first property project together.
0:54:58 > 0:55:01And not only were they learning new skills,
0:55:01 > 0:55:03Alan had to learn to work with John.
0:55:03 > 0:55:05So, what was that like?
0:55:05 > 0:55:07Be careful.
0:55:07 > 0:55:10At times, he takes a bit too long thinking about jobs,
0:55:10 > 0:55:12whereas I like to just get in and get it done.
0:55:12 > 0:55:16So then I end up taking over him and doing it myself.
0:55:16 > 0:55:19- Really, don't we?- Yeah. - But apart from that, we get on well.
0:55:23 > 0:55:27The partnership seems intact, but the budget isn't.
0:55:27 > 0:55:33Originally, they thought £10,000 to £15,000, but they've spent 27,000.
0:55:33 > 0:55:36Added to the £35,000 purchase price,
0:55:36 > 0:55:40this takes their total investment to £62,000.
0:55:41 > 0:55:45So, has their long-awaited jump into the property development
0:55:45 > 0:55:47business been a good move?
0:55:47 > 0:55:50What do two local estate agents think?
0:55:50 > 0:55:51Well, this one is a good little house.
0:55:51 > 0:55:53The attention to detail is good.
0:55:53 > 0:55:55Internal doors are of a good standard.
0:55:55 > 0:55:58Kitchen is nice and modern. It fits with this type of property
0:55:58 > 0:56:00and its target market.
0:56:00 > 0:56:02I think it's been extensively refurbished
0:56:02 > 0:56:05and upgraded to a very good specification.
0:56:05 > 0:56:08OK, so good, positive comments.
0:56:08 > 0:56:10But what about the financial returns on a house that has cost
0:56:10 > 0:56:14a total of £62,000, including refurbishment?
0:56:14 > 0:56:18If the owners were to put it on the open market today,
0:56:18 > 0:56:21then I would expect them to get a price of £75,000.
0:56:21 > 0:56:25I'd place this property on the market at just under £80,000.
0:56:25 > 0:56:29And I'd expect to get between £75,000 and £77,000.
0:56:29 > 0:56:34Mm. So that could be a pre-tax profit of £13,000 to £18,000.
0:56:34 > 0:56:36What do John and Alan make of that?
0:56:36 > 0:56:40- It's a lot less than we thought. - Lot less than we worked on.
0:56:40 > 0:56:43We worked on a final figure of about 85.
0:56:43 > 0:56:47But we've had someone else come on in and they're going to put
0:56:47 > 0:56:51it on at 99,950 to take 95.
0:56:51 > 0:56:53They might be disappointed
0:56:53 > 0:56:56with the agents' figures, but in fact, the good news for John
0:56:56 > 0:57:00and Alan is they've now sold the house for £90,000,
0:57:00 > 0:57:04giving a healthy pre-tax profit of £28,000.
0:57:04 > 0:57:06So, what's next?
0:57:08 > 0:57:11Back to the auction and get another one.
0:57:11 > 0:57:14- Yeah.- And go again.- It's definitely something I'd like to do again.
0:57:14 > 0:57:18I've been doing it part-time on this one and really enjoyed it,
0:57:18 > 0:57:21so I think, hopefully, if we can get another in pretty quick,
0:57:21 > 0:57:25I'm going at it full-time and turn it over a lot quicker and go again.
0:57:25 > 0:57:28Great, so John and Alan will be back building soon.
0:57:28 > 0:57:31But Nobby the gnome has been cemented into the wall.
0:57:31 > 0:57:34Will the new buyers want to keep him?
0:57:34 > 0:57:35You can answer that, Alan.
0:57:35 > 0:57:38Well, that was my idea, so hopefully,
0:57:38 > 0:57:40they'll keep it there, cos it's part of the feature.
0:57:40 > 0:57:44It goes with the background, so, hopefully...
0:57:44 > 0:57:47It's not your cup of tea, but it's mine, so I hope it stays.
0:57:47 > 0:57:49Great, Nobby's gnome from home.
0:57:49 > 0:57:53# Then one day, hooray
0:57:53 > 0:57:57# Another way for gnome's to say
0:57:57 > 0:58:04# Hooray! #
0:58:07 > 0:58:10Well, that's it for today's show.
0:58:10 > 0:58:13Did we inspire you or put you off trying it for yourself?
0:58:13 > 0:58:16Look forward to seeing you next time for more Homes Under The Hammer.
0:58:16 > 0:58:18- We'll see you then.- BOTH: Goodbye.