0:00:02 > 0:00:05The UK property auction market is a multi-million pound business.
0:00:05 > 0:00:07Those are big numbers, but don't let that put you off.
0:00:07 > 0:00:11No, auctions are open to everyone. It's a level playing field.
0:00:11 > 0:00:14All you need is confidence and a little bit of know-how.
0:00:41 > 0:00:45Well, with tens of thousands of properties going up for auction
0:00:45 > 0:00:49every year, there are such a variety on offer, from houses to barns,
0:00:49 > 0:00:51to bungalows - you name it!
0:00:51 > 0:00:54Well, here are what today's bidders bought when they put their hands up.
0:00:54 > 0:00:58In Ramsgate, a holiday home open to all.
0:00:58 > 0:01:01- So there's no rules, it's free for all.- Yep.
0:01:01 > 0:01:04You'll be very welcome, just let us know when you want to come along.
0:01:04 > 0:01:08In Derbyshire, a property has left me lost for words!
0:01:08 > 0:01:10..Temporarity to it.
0:01:10 > 0:01:13Temporarr...you know what I mean! Temporariness?
0:01:13 > 0:01:14Well, you know the word.
0:01:16 > 0:01:21And up in Glasgow, a little tenement flat puts me in the party mood.
0:01:22 > 0:01:25Lorraine, I love that. Give me a high-five!
0:01:27 > 0:01:30All these properties have been sold at auction, and we'll find out who
0:01:30 > 0:01:32bought them and what they paid for them
0:01:32 > 0:01:35when they went under the hammer.
0:01:39 > 0:01:41Ah, the seaside!
0:01:41 > 0:01:44When the sun shines, there's no better place to be
0:01:44 > 0:01:48and this sunny bit of coastline is in Kent and the town of Ramsgate.
0:01:50 > 0:01:54A very short stroll from the harbour and we're on this simply stunning
0:01:54 > 0:01:59road, and it's lined with gorgeous grade 2 listed Regency terraces.
0:01:59 > 0:02:03Somewhat surprisingly, it was on this very street
0:02:03 > 0:02:08a young Vincent van Gogh spent time teaching French at a boys' school
0:02:08 > 0:02:10when he was strapped for cash.
0:02:10 > 0:02:14So, was it a masterpiece that went under the hammer?
0:02:14 > 0:02:18Well, what I can tell you is that it's a one-bedroom flat
0:02:18 > 0:02:24and it had a guide price of 25,000-£28,000.
0:02:24 > 0:02:26That seems very, very cheap!
0:02:29 > 0:02:32And this property is on the ground floor of this Georgian terrace,
0:02:32 > 0:02:35which looks really good from the outside,
0:02:35 > 0:02:37as does the communal hallway.
0:02:39 > 0:02:43This flat hasn't got an amazing sense of flow the minute you walk
0:02:43 > 0:02:46through the door. Lots of little corridors and doorways.
0:02:46 > 0:02:48The kitchen at the back.
0:02:48 > 0:02:52We've got a spacious bathroom there, and the living room.
0:02:52 > 0:02:54I'm actually going to show you the best bit first
0:02:54 > 0:02:59because look at this stunning Georgian bay window. Brilliant!
0:02:59 > 0:03:02But imagine waking up here - what shall I do today?
0:03:02 > 0:03:04I think I'll have a game of tennis, or I could just
0:03:04 > 0:03:08look at the sea view, and it really feels like a little holiday home.
0:03:08 > 0:03:12But what I want to do is put the kitchen in here because I think
0:03:12 > 0:03:15whoever wants to live here will want to make the most of that
0:03:15 > 0:03:20amazing view, so I'm just wondering whether we could push back and
0:03:20 > 0:03:23steal the bathroom space, but that would mean relocating the bathroom.
0:03:27 > 0:03:29# Ah, push it! #
0:03:31 > 0:03:34Yes, push that lounge wall back and stick in a kitchen
0:03:34 > 0:03:39and you may have yourself a great kitchen diner with sea views,
0:03:39 > 0:03:43and I may have found a solution to repositioning the bathroom.
0:03:43 > 0:03:47Do come in. Now, could this be the location for the bathroom?
0:03:47 > 0:03:51In the auction catalogue it's the dressing room, so let's think...
0:03:51 > 0:03:54The bathroom comes out of there, goes into here.
0:03:54 > 0:03:57You can make the lounge so much bigger.
0:03:57 > 0:04:00You can then use the kitchen as the bedroom because it's a much
0:04:00 > 0:04:04bigger, better shape, and then you'd have two nice size bedrooms.
0:04:04 > 0:04:07The only thing that's worrying me, is it could end up
0:04:07 > 0:04:11costing as much as the guide price of this flat to do all the work.
0:04:15 > 0:04:17Mind you, looking more closely at the flat,
0:04:17 > 0:04:19there's quite a lot of work generally
0:04:19 > 0:04:22so I think you'd be ripping out bathrooms and kitchens anyway.
0:04:24 > 0:04:28And certainly the plumbing and the electrics do need replacing,
0:04:28 > 0:04:31so rejigging the layout might add a little to your costs
0:04:31 > 0:04:35but not significantly, and certainly overall it would be worth doing,
0:04:35 > 0:04:38especially with such a potentially great flat.
0:04:38 > 0:04:40Not only does it have sea views,
0:04:40 > 0:04:43there's even the added bonus of a small courtyard
0:04:43 > 0:04:45off the main bedroom.
0:04:45 > 0:04:50So, a low-ish guide price of 25,000-£28,000 here.
0:04:50 > 0:04:55No, it's not in great nick but it turns out there's another reason.
0:04:55 > 0:04:59That's because the lease has just 59 years left to run,
0:04:59 > 0:05:03which equals problems getting any kind of finance on this place,
0:05:03 > 0:05:07and a substantial sum to fork out when you want to extend it.
0:05:07 > 0:05:08And extend it you must,
0:05:08 > 0:05:12because the longer you leave it, the pricier it gets.
0:05:14 > 0:05:17The cost of extending the lease varies from property to property,
0:05:17 > 0:05:20but it is something you need to factor into your budget.
0:05:20 > 0:05:22And then there's the mortgage issue.
0:05:22 > 0:05:27Many lenders don't lend property with a lease shorter than 70 years.
0:05:27 > 0:05:29There are specialists on short lease mortgages
0:05:29 > 0:05:33so that might be one route you could go, but usually properties
0:05:33 > 0:05:36with these sort of issues are ones for cash buyers only.
0:05:37 > 0:05:41You could try to buy the freehold with the other owners.
0:05:41 > 0:05:43That could take time though.
0:05:43 > 0:05:46Anyway, the bottom line here is, if you are looking to turn
0:05:46 > 0:05:50a property around quickly, a short lease is probably not for you.
0:05:54 > 0:05:58What does a local estate agent make of this Georgian one-bed flat?
0:06:01 > 0:06:03I think it needs completely re-jigging around.
0:06:03 > 0:06:06If you can move kitchens, bathrooms, and create a proper two-bedroom
0:06:06 > 0:06:09apartment with good-sized bedrooms, I think that will be a winner.
0:06:09 > 0:06:11Because it's got a garden and a ground floor,
0:06:11 > 0:06:13this is where it appeals to everybody.
0:06:13 > 0:06:17It seems we're both on the same page about changing the layout,
0:06:17 > 0:06:21but if the work was carried out and the lease extended, what could
0:06:21 > 0:06:26this flat that was guided at £25,000-28,000 potentially be worth?
0:06:26 > 0:06:28Whilst fully renovated,
0:06:28 > 0:06:31I personally think it would be about £85,000-90,000.
0:06:31 > 0:06:33And what about rental values?
0:06:33 > 0:06:35For rental purposes, I think
0:06:35 > 0:06:38you'd get anywhere between £550-650 per calendar month.
0:06:43 > 0:06:47A gorgeous road, a fabulous location, a prestigious heritage.
0:06:47 > 0:06:50This lot has it all,
0:06:50 > 0:06:54and a whacking great lump sum to extend the lease as well! But hey,
0:06:54 > 0:06:58you weren't expecting something stunning AND simple, were you?
0:06:58 > 0:07:01Let's see who went for it anyway at the auction.
0:07:04 > 0:07:07We're going to start... We could start at £25,000.
0:07:07 > 0:07:0825,000.
0:07:08 > 0:07:12I did see the hand sitting down first so I've got 25, I'm going
0:07:12 > 0:07:16to take 28 from you, sir. 28, and 30. At 30 and two.
0:07:16 > 0:07:19At 30... 32 on the trellis, standing.
0:07:19 > 0:07:23And 35 sitting, 38 now, it's against both of you.
0:07:23 > 0:07:27At 38, 38 sitting in front of me. And now 40 if you like.
0:07:27 > 0:07:3140 I have with you, madam. And two, 42. At 42, standing again.
0:07:31 > 0:07:3445, 45, and eight.
0:07:34 > 0:07:3848. 48, sitting in front of me further down.
0:07:38 > 0:07:4348 and 50, it's against you. At 50, at 50 and two.
0:07:43 > 0:07:4652. At 52, I've got in the room again.
0:07:46 > 0:07:51And 55 now, it's against you. 55, is with you. And 58.
0:07:51 > 0:07:55It's back with you if you like. 58, and nine. 59. 59.
0:07:55 > 0:07:5959 I've got at the back. 60, and one.
0:07:59 > 0:08:0361. At 61 at the back. 61, he says yes.
0:08:03 > 0:08:07At 62. 62? For the first time then at 61,000,
0:08:07 > 0:08:1061,000 for the second time.
0:08:10 > 0:08:1261,000 for the third and final time.
0:08:15 > 0:08:20And so, for over double the guide price at £61,000,
0:08:20 > 0:08:24the successful bidder for the one-bed Ramsgate flat was Andy,
0:08:24 > 0:08:27who bought it jointly with his friend Mark at the back here
0:08:27 > 0:08:30as a holiday home for their two families to use.
0:08:30 > 0:08:34# I need a holiday. (I need a holiday!)
0:08:34 > 0:08:37# I need a holiday with my friends
0:08:37 > 0:08:40# I'm working every day (I need a holiday)
0:08:40 > 0:08:43# I'm working every day through the weekend #
0:08:45 > 0:08:48While the rest of the family went to enjoy the delights
0:08:48 > 0:08:52of Ramsgate, I caught up with Mark and Andy to find out how
0:08:52 > 0:08:56they were going to make it a holiday home suitable for all seven of them!
0:08:58 > 0:09:02Andy and Mark, congratulations. What a fantastic little flat this is!
0:09:02 > 0:09:04- Yes.- No, we're very pleased, very pleased indeed.
0:09:04 > 0:09:08Were you always as two families looking for a little holiday home?
0:09:08 > 0:09:10No, the brochure has been coming in for years to my office
0:09:10 > 0:09:13and I've always put it to one side and never bothered with it.
0:09:13 > 0:09:15Then all of a sudden, I picked it up, had a look,
0:09:15 > 0:09:18- and that's how it started really. - And then you got the call?
0:09:18 > 0:09:20Yeah, we'd been down to Ramsgate last year
0:09:20 > 0:09:23for Andy's 50th birthday and stayed here for the weekend.
0:09:23 > 0:09:25We'd been a few times and it's always been nice down here.
0:09:25 > 0:09:28Was it, the minute you saw it, you had to have it kind of thing?
0:09:28 > 0:09:32No, the position of it is really what sold it to us.
0:09:32 > 0:09:35With plans currently for this to be a long term holiday home,
0:09:35 > 0:09:39the short lease wasn't a major problem for Mark and Andy,
0:09:39 > 0:09:42but they are hoping, together with the other flat owners,
0:09:42 > 0:09:45to buy the freehold of the building or extend the lease.
0:09:46 > 0:09:50But first, they need to sort out the flat and its current layout.
0:09:52 > 0:09:54The first thing I thought when I walked into this flat was,
0:09:54 > 0:09:56"I would like this room to be bigger
0:09:56 > 0:09:59"and I would like the kitchen in here because I would like to be
0:09:59 > 0:10:01"making my tea and toast and looking at that view."
0:10:01 > 0:10:05- Are you along the same thought process?- We are, because this room is particularly light,
0:10:05 > 0:10:08which is what we liked, but what we thought was, if the kitchen comes
0:10:08 > 0:10:10forward and sits behind the wall, we could open that up
0:10:10 > 0:10:13so that the kitchen comes straight through into this room.
0:10:13 > 0:10:16Not totally by taking the wall out, but putting an opening in there.
0:10:16 > 0:10:18Then we can have a bit of a kitchen bar that comes into this room.
0:10:18 > 0:10:22I'm so pleased we're thinking along the same lines, using that bathroom
0:10:22 > 0:10:25space to create a better living area
0:10:25 > 0:10:27will be so much more family-friendly.
0:10:27 > 0:10:31But the big question is, where are you going to put that bathroom?
0:10:31 > 0:10:34Well, we've sort of come up with an idea in the back half, where you've
0:10:34 > 0:10:37got the sort of small room that's been divided and then taken apart.
0:10:37 > 0:10:40We're going to divide that again and just put a small shower room
0:10:40 > 0:10:43in there, toilet bath, and then have another small sort of room
0:10:43 > 0:10:45probably for the kids to have their games and things in.
0:10:45 > 0:10:49So that leaves the second bedroom and that will go in the kitchen?
0:10:49 > 0:10:51- What is now the kitchen, yes. - That's the idea.
0:10:51 > 0:10:52The kitchen will come forward
0:10:52 > 0:10:54and then we'll have two reasonable size bedrooms in.
0:10:54 > 0:10:57And what would the budget be for both of you?
0:10:57 > 0:10:58We've got up to maybe nine.
0:10:58 > 0:11:01- That's a bit tight! - We can do a fair bit on our own.
0:11:01 > 0:11:02So how handy are you two?
0:11:02 > 0:11:05- I work in the construction industry. - Oh, OK.- Which is useful.
0:11:05 > 0:11:08- I'm a ground work contractor, so... - That's going to be very useful.
0:11:08 > 0:11:11Yes, there's a few people we know we can call in for some favours
0:11:11 > 0:11:12and bits and pieces.
0:11:12 > 0:11:15- And I work in newspapers, I'm a newspaper editor, so...- OK.
0:11:15 > 0:11:19With both of them working, this will be a weekend project
0:11:19 > 0:11:23and they hope it'll be ready as a holiday home in three to six months.
0:11:24 > 0:11:26How are you going to work out the timetable?
0:11:26 > 0:11:28Are you going to come all at the same time?
0:11:28 > 0:11:29Are you going to split it all up?
0:11:29 > 0:11:31We might come at the same time sometimes.
0:11:31 > 0:11:33We've had no thoughts on it really.
0:11:33 > 0:11:36The idea is to try and use it just as a weekend thing, with
0:11:36 > 0:11:39- the children as well, altogether.- So there's no rules, it's free for all.
0:11:39 > 0:11:41If you want to come down, come down.
0:11:41 > 0:11:44- When people are staying, they're staying.- There's room to stay.
0:11:44 > 0:11:46You'll be very welcome, just let us know when you want to come along!
0:11:46 > 0:11:50Did you take the hint? I really want to come and stay, it's so much fun.
0:11:50 > 0:11:52- So, are the kids all excited? - Oh, they are, yes.
0:11:52 > 0:11:55They're playing tennis already so we'll have to go and stop them
0:11:55 > 0:11:58from that to get them started on the work when we need them!
0:11:58 > 0:11:59Oh, guys, I'm really excited.
0:11:59 > 0:12:02I really love this property, I think it's absolutely superb.
0:12:02 > 0:12:05Can't wait to see the outcome of this happy little Ramsgate flat.
0:12:05 > 0:12:09- Well done.- Thank you very much indeed.- Thanks very much.
0:12:09 > 0:12:14Andy and Mark have got a fabulous flat here. I love it!
0:12:14 > 0:12:15Did you get that impression?!
0:12:15 > 0:12:18It's all fun, fun, fun at the moment
0:12:18 > 0:12:22and I hope they still feel that way when the renovation is in full swing
0:12:22 > 0:12:25and that nine grand, well, it's disappearing fast.
0:12:25 > 0:12:28Find out how it all goes later in the programme.
0:12:32 > 0:12:36So, am I going to be just as excited about our next property
0:12:36 > 0:12:40here in Codnor in Ripley in the Amber Valley district of Derbyshire?
0:12:40 > 0:12:44Derbyshire is an area steeped in mining heritage and the village
0:12:44 > 0:12:48of Codnor with its handy links to Derby and Nottingham is a good place
0:12:48 > 0:12:52for a would-be commuter looking for affordably-priced housing.
0:12:53 > 0:12:56So, what was on offer at the auction?
0:12:56 > 0:13:01Well, something which I imagine was a very popular lot.
0:13:01 > 0:13:03Guide price apart, which I'll come to,
0:13:03 > 0:13:05the fact was it was a detached house,
0:13:05 > 0:13:08and a really nice-looking one, too.
0:13:08 > 0:13:13That guide price was £87,000. You know what? It looks like a doozy.
0:13:18 > 0:13:21And so...we explore.
0:13:22 > 0:13:26Really nice-sized living room - it's dual aspect.
0:13:26 > 0:13:30Goes a bit strange when you come into this rear area, though,
0:13:30 > 0:13:32because you've got a door here leading out
0:13:32 > 0:13:37to a sort of entrance area and a downstairs loo.
0:13:37 > 0:13:39That was the original kitchen,
0:13:39 > 0:13:44which seriously is not adequate for this size of house.
0:13:44 > 0:13:46Which is why...
0:13:46 > 0:13:48somebody came up with a solution.
0:13:48 > 0:13:52Presumably, these sliding doors used to lead out into the rear garden,
0:13:52 > 0:13:57but they now need out into, ta-da, a very light, airy kitchen.
0:13:57 > 0:14:02And anything like this always has a slight sense of temporarity to it.
0:14:02 > 0:14:05Tempo... You know what I mean - temporariness...
0:14:05 > 0:14:08Well, you know the word. It seems a little bit temporary.
0:14:08 > 0:14:10Apart from that, it's got a nice feel to it,
0:14:10 > 0:14:12and certainly it's infinitely better than that,
0:14:12 > 0:14:14although I would like to think...
0:14:14 > 0:14:17Knock down a few walls and maybe take this back inside.
0:14:17 > 0:14:21# Hey, baby! I don't know what came over me... #
0:14:21 > 0:14:23Temporary or up for keeps,
0:14:23 > 0:14:26this extension's structure needs to be checked out.
0:14:26 > 0:14:30Then I reckon if you were to combine the three spaces currently housing
0:14:30 > 0:14:35this tiny kitchen, this side vestibule and the downstairs loo,
0:14:35 > 0:14:38you could create yourself a good-sized kitchen.
0:14:38 > 0:14:42Then you could turn this into what probably most people
0:14:42 > 0:14:46would be looking for at this part of the house -
0:14:46 > 0:14:48a sun lounge or a conservatory -
0:14:48 > 0:14:54something with that less temporari-rull-riness.
0:14:54 > 0:14:56Well, upstairs, pretty much what you'd expect -
0:14:56 > 0:14:58there's three bedrooms, a bathroom,
0:14:58 > 0:15:01which looks to be in fairly decent nick.
0:15:01 > 0:15:03Like the rest of the house, if you were renting it out,
0:15:03 > 0:15:05pretty much leave it as it is.
0:15:05 > 0:15:07What is quite interesting, though,
0:15:07 > 0:15:10cos I reckon at some point this has been a two-bedroom property,
0:15:10 > 0:15:13because there's an extra doorframe here.
0:15:13 > 0:15:15This has obviously been divided by these partition walls
0:15:15 > 0:15:18to create two bedrooms, so you've got three in total.
0:15:18 > 0:15:21But that room there is very, very, very small.
0:15:21 > 0:15:23Erm...is it better like this?
0:15:25 > 0:15:27Don't know. Don't know.
0:15:27 > 0:15:29Actually, you'd probably leave it as it is,
0:15:29 > 0:15:33but it's interesting how it was originally designed.
0:15:33 > 0:15:38The decor and fittings are obviously tired, but overall I'm impressed.
0:15:38 > 0:15:41It wouldn't take too much elbow grease to get this place
0:15:41 > 0:15:44looking up-to-date and family-friendly.
0:15:44 > 0:15:46Time to explore outside.
0:15:47 > 0:15:49Well, you certainly can't complain
0:15:49 > 0:15:51about the of number entrances to the property.
0:15:51 > 0:15:54One at the front, one at the back and one at the side.
0:15:54 > 0:15:57Come out of that one and you come into this little driveway.
0:15:57 > 0:16:01Bit narrow, a bigger car might have issues getting through here,
0:16:01 > 0:16:03but the good news is there is at least a garage.
0:16:03 > 0:16:07There is also, joy of joys, a really nice-sized garden.
0:16:07 > 0:16:09It's kind of terraced, goes back quite a long way,
0:16:09 > 0:16:11but with a good few hours with a strimmer,
0:16:11 > 0:16:15I reckon you could turn this into a very pleasant spot.
0:16:15 > 0:16:17I love a nice bit of garden,
0:16:17 > 0:16:20it looks as though someone once loved this one.
0:16:20 > 0:16:23I hope it gets brought back to its former glory.
0:16:23 > 0:16:26At a guide price of £87,000,
0:16:26 > 0:16:29this is a lot of house and garden for your money.
0:16:32 > 0:16:36Time to seek out the expert opinion of a local estate agent.
0:16:39 > 0:16:43This is a nice, traditionally-styled house.
0:16:43 > 0:16:47It's got three bedrooms, it's got off-street parking, it's got gardens.
0:16:47 > 0:16:50It's ready for a little bit more updating and TLC.
0:16:50 > 0:16:53What does the agent make of that third bedroom?
0:16:53 > 0:16:56Would this be better as a two or a three-bedroom house?
0:16:56 > 0:16:58I think the demand for three-bedroom houses is such
0:16:58 > 0:17:01that it wouldn't pay to knock the first and the third bedroom
0:17:01 > 0:17:04back into one large double room. I would keep it as three bedrooms.
0:17:04 > 0:17:07OK, so what kind of resale price would you get
0:17:07 > 0:17:10for this as a three-bed, refurbished house?
0:17:10 > 0:17:12Once the property has been renovated,
0:17:12 > 0:17:15we would suggest an asking price of £135,000.
0:17:15 > 0:17:17And if it was rented out?
0:17:17 > 0:17:21The property would let quite easily at £550 per calendar month.
0:17:21 > 0:17:25Quite unusual to find a property like this around these parts -
0:17:25 > 0:17:27three bedrooms, detached -
0:17:27 > 0:17:30and still these days there are a lot of people
0:17:30 > 0:17:33who love the appeal of a detached house.
0:17:33 > 0:17:36So did it get a premium at the auction?
0:17:36 > 0:17:39Let's find out when it went under the hammer.
0:17:43 > 0:17:4786. Bid me where you like, 85 for the three-bed-detached house.
0:17:47 > 0:17:50It's got to be value, surely. 85,000 for it.
0:17:50 > 0:17:5285, I've got here, thank you.
0:17:52 > 0:17:55At £85,000, 86 at the back.
0:17:55 > 0:17:5886,000, 87 is bid.
0:17:58 > 0:18:02At 87, 88? Thank you, 88.
0:18:02 > 0:18:0488,000, 89?
0:18:04 > 0:18:0689 is bid.
0:18:06 > 0:18:0990,000. At 90. 91?
0:18:10 > 0:18:12Shakes his head. 91 at the back there.
0:18:12 > 0:18:1491, 92?
0:18:14 > 0:18:1691, 92.
0:18:16 > 0:18:18At 92, 93?
0:18:18 > 0:18:21£92,000 here against you there.
0:18:21 > 0:18:24At 92,000, for the first time.
0:18:24 > 0:18:28For the second time, third chance, any higher bid?
0:18:28 > 0:18:30Sold at 92,000, thank you.
0:18:33 > 0:18:37The successful bidder was Bob and 23-year-old daughter Harriet
0:18:37 > 0:18:43who for £92,000 paid just £5,000 over the guide price.
0:18:43 > 0:18:47We met them last year on their first property development
0:18:47 > 0:18:49when they renovated a two-bedroom terrace
0:18:49 > 0:18:51in the nearby village of Heanor.
0:18:51 > 0:18:54Harriet was so pleased with how it turned out,
0:18:54 > 0:18:58that she quite fancied moving into it herself.
0:18:58 > 0:19:01I met them back at this property to catch up.
0:19:02 > 0:19:05Bob, Harriet, great to see you again!
0:19:05 > 0:19:06Nice to see you again, Martin.
0:19:06 > 0:19:10- Yeah, obviously we didn't put you off last time.- Not quite. Almost.
0:19:10 > 0:19:13- Or the experience. How did it all go?- It went really well, actually.
0:19:13 > 0:19:15Really pleased with the outcome, aren't we?
0:19:15 > 0:19:17Yeah, and I'm living in that one now, as well.
0:19:17 > 0:19:20You are. Onto project number two, is it?
0:19:20 > 0:19:23- We've been looking since we finished the first one.- Right.
0:19:23 > 0:19:25Took a while to find something suitable.
0:19:25 > 0:19:29Eventually, we took the courage to go to the auction again, didn't we?
0:19:29 > 0:19:31- Yeah.- What was it that appealed to you, Bob?
0:19:31 > 0:19:35There aren't many three-bed detached available in this area
0:19:35 > 0:19:36for a reasonable price.
0:19:36 > 0:19:39And there were several properties we were looking at
0:19:39 > 0:19:42at the auction, but this one really was the one
0:19:42 > 0:19:44that I thought would be the best for us.
0:19:44 > 0:19:47Harriet will definitely not be moving into this one.
0:19:47 > 0:19:49This is strictly business.
0:19:49 > 0:19:51So what did she learn from the last one?
0:19:51 > 0:19:54Well, obviously, I was doing a lot of painting, which...
0:19:54 > 0:19:56I've never painted a wall before, to be honest.
0:19:56 > 0:19:58So I think I'll be a lot better at it
0:19:58 > 0:20:03- and quicker this time, probably.... - Right.- ..than I was last time.
0:20:03 > 0:20:04Now that I know what I'm doing.
0:20:04 > 0:20:06So, what are the plans for this one?
0:20:06 > 0:20:08What do you think, Harry? Go first.
0:20:08 > 0:20:14We're thinking of perhaps making that area into a study-utility room.
0:20:14 > 0:20:16- OK.- Yeah, there are three doors to the house,
0:20:16 > 0:20:18which is a bit over the top.
0:20:18 > 0:20:23The side door opens up into a sort of a strange entry lobby.
0:20:23 > 0:20:26To the side of that is the old kitchen, which is now the utility.
0:20:26 > 0:20:28We might be able to make that into one room.
0:20:28 > 0:20:29Right, knock a wall down then.
0:20:29 > 0:20:32Knock a wall down. Put another wall up outside.
0:20:32 > 0:20:37Use it as inside space. Not sure yet, it depends on what's holding what up.
0:20:37 > 0:20:40And the sliding doors out into the kitchen area, you know...
0:20:40 > 0:20:43It's not ideal to have your kitchen out there
0:20:43 > 0:20:46in what looks like half a conservatory. It isn't.
0:20:46 > 0:20:49I don't think we'll be able to get the kitchen inside anywhere,
0:20:49 > 0:20:51- so I think it'll stay. - It'll stay as it is.
0:20:51 > 0:20:53And then upstairs?
0:20:53 > 0:20:57Upstairs, you've got two big double bedrooms, one tiny single room
0:20:57 > 0:20:59and a bathroom.
0:20:59 > 0:21:01- Nothing you could do apart from...make them good.- Just, yeah...
0:21:01 > 0:21:05- All in all, the house isn't in bad nick, is it?- No, it's quite good.
0:21:05 > 0:21:09Bob and Harriet plan to leave this as a three-bedroomed house.
0:21:09 > 0:21:11And since it's in such reasonable condition,
0:21:11 > 0:21:14they reckon a budget of £6,000 will be enough
0:21:14 > 0:21:16to renew the kitchen and bathroom.
0:21:16 > 0:21:21Last time, Harriet was a business partner, but this time she's staff.
0:21:21 > 0:21:24- No, I'm going to have to pay her this time.- Oh, are you?- Yeah.
0:21:24 > 0:21:27- Have you negotiated a rate yet? - Not yet, no.
0:21:27 > 0:21:29Is now the time to talk about it, maybe?
0:21:29 > 0:21:31When I can be an independent arbitrator?
0:21:31 > 0:21:33I think it'll be a zero-hours contract.
0:21:33 > 0:21:35Oh, really? They are very, very...
0:21:35 > 0:21:39Yes, they're a bit contentious at the moment.
0:21:39 > 0:21:44# Walked all day till my feet were tired
0:21:44 > 0:21:49# I was low I just couldn't get hired
0:21:49 > 0:21:50# I got a job
0:21:50 > 0:21:53# Sha-na-na-na, sha-na-na-na-na
0:21:53 > 0:21:56# I got a job. #
0:21:58 > 0:22:01Good work, Bob, make the kids earn their keep.
0:22:01 > 0:22:04Bob and Harriet have two timescales for this project.
0:22:04 > 0:22:08Just four weeks, if they decide to rent the property out.
0:22:08 > 0:22:09Or, if they decide to sell it,
0:22:09 > 0:22:13four to five months, which I think is a little more realistic.
0:22:13 > 0:22:17So, one project down, one to go. Will they be carrying on?
0:22:21 > 0:22:24If it works out, possibly another one again.
0:22:24 > 0:22:26Depending what we do with this one, obviously.
0:22:26 > 0:22:29- Does that fit in with your...? - Yes, I think we'll keep doing them.
0:22:29 > 0:22:33As long as there's money around, we'll do another one.
0:22:33 > 0:22:36Money runs out, then we'll retire.
0:22:37 > 0:22:40So, father and daughter, Bob and Harriet,
0:22:40 > 0:22:44embarking on their second property development project together.
0:22:44 > 0:22:48This time, with Harriet's honed painting skills coming into play.
0:22:48 > 0:22:52How will they get on? You can find out later in the show.
0:22:53 > 0:22:56In Glasgow, a first-time developer does her homework.
0:22:58 > 0:23:02- You read the legal pack.- Read it? I was like Miss Marple.- Good girl!
0:23:04 > 0:23:07In Derbyshire, when it comes to this detached house,
0:23:07 > 0:23:09Bob gets an A for effort.
0:23:09 > 0:23:12It has been seven days a week for the past six months.
0:23:15 > 0:23:18It was in the seaside town of Ramsgate in Kent,
0:23:18 > 0:23:20just along from the seafront,
0:23:20 > 0:23:23that we came across a Georgian one-bedroom flat.
0:23:23 > 0:23:27And, though tired and dated, its high ceilings and large front lounge
0:23:27 > 0:23:31with bay windows gave this flat a really lovely feel.
0:23:31 > 0:23:35It even had the bonus of a small courtyard garden.
0:23:35 > 0:23:40But the flat only had a short lease, and the layout wasn't quite right.
0:23:40 > 0:23:43It wasn't really making the most of those wonderful sea views,
0:23:43 > 0:23:46and the pleasant aspect out front.
0:23:46 > 0:23:50But it was bought for 61,000 at auction by friends Mark and Andy
0:23:50 > 0:23:53as a holiday home for their two families
0:23:53 > 0:23:55and they had grand plans for it.
0:23:55 > 0:23:58Cos this room's particularly light, which is what we liked.
0:23:58 > 0:24:00But what we thought was, if the kitchen comes forward
0:24:00 > 0:24:02and sits behind the wall, we could open that up,
0:24:02 > 0:24:05so the kitchen comes straight through into this room.
0:24:05 > 0:24:08But the big question is where are you going to put that bathroom?
0:24:08 > 0:24:11Well, we've sort of come up with an idea in the back half,
0:24:11 > 0:24:14where you've got the small room that's been divided
0:24:14 > 0:24:16- and then taken apart.- Yes. - We're going to divide that again
0:24:16 > 0:24:19and just put a small shower room in there, toilet, bath,
0:24:19 > 0:24:20and then have another small room
0:24:20 > 0:24:22for the kids to have their games and things in.
0:24:22 > 0:24:25So, that leaves the second bedroom and that will go in the kitchen?
0:24:25 > 0:24:27- What is now the kitchen.- Yes.
0:24:29 > 0:24:31Andy is a newspaper editor,
0:24:31 > 0:24:34while Mark works in civil engineering,
0:24:34 > 0:24:37and the plan was that along with their wives, Julie and Sarah,
0:24:37 > 0:24:39and their three teenage sons,
0:24:39 > 0:24:41this team of seven was to do the majority
0:24:41 > 0:24:43of the renovation work themselves -
0:24:43 > 0:24:45tackling the tasks mainly at weekends
0:24:45 > 0:24:49and to use Mark's trade contacts for specialist areas,
0:24:49 > 0:24:51such as plumbing and electrics.
0:24:51 > 0:24:54They were hoping that a budget of £9,000
0:24:54 > 0:24:57and a rough timescale of three to six months
0:24:57 > 0:25:00would see their seaside retreat ready to be used
0:25:00 > 0:25:02for rest and relaxation.
0:25:05 > 0:25:09And now, just under six months later, we're back.
0:25:09 > 0:25:12And the paintbrushes have been out -
0:25:12 > 0:25:15the exterior of the flat is now a crisp white,
0:25:15 > 0:25:17and the front doors and railings
0:25:17 > 0:25:20have been given a fresh lick of paint that van Gogh himself,
0:25:20 > 0:25:23oh, he would have been so proud of!
0:25:23 > 0:25:26And inside, what a transformation!
0:25:26 > 0:25:28This was a living room, it stayed the same,
0:25:28 > 0:25:32what was the original bathroom is now a small, sort of, kitchen.
0:25:38 > 0:25:42The original kitchen is now the decent-sized second bedroom.
0:25:42 > 0:25:48And they've maximised the space by furnishing with bunk beds. Ideal!
0:25:48 > 0:25:52The middle room, we've divided into two, to make a small sort of study,
0:25:52 > 0:25:55come occasional bedroom, plus a bathroom or shower room.
0:25:58 > 0:26:00That's a much better use of that room
0:26:00 > 0:26:04that was described as the dressing room at the auction.
0:26:04 > 0:26:07All the bedrooms have bunks to allow for flexibility
0:26:07 > 0:26:10for both families and the back bedroom has access
0:26:10 > 0:26:12to the pretty back courtyard.
0:26:14 > 0:26:15We've changed pretty much everything.
0:26:15 > 0:26:18But we certainly had to do all of the electrics,
0:26:18 > 0:26:20some plumbing we've had to do.
0:26:20 > 0:26:22And then an awful lot of doing up and decorating
0:26:22 > 0:26:24that we've mainly done ourselves.
0:26:25 > 0:26:28Clearly, with areas such as the electrics and the plumbing,
0:26:28 > 0:26:30the old had to go.
0:26:30 > 0:26:33But that wasn't the case with everything.
0:26:33 > 0:26:37A couple of features we found - the wooden panelling in the front room,
0:26:37 > 0:26:39which was hidden by hardboard, revealed.
0:26:39 > 0:26:42We took the gas fire off the wall,
0:26:42 > 0:26:45and revealed the opening, put a sort of period fireplace
0:26:45 > 0:26:47surrounding it and a basket.
0:26:47 > 0:26:51We tried to match in as best we can with what we've done of other stuff.
0:26:51 > 0:26:54I think the character features really add so much to this flat.
0:26:54 > 0:26:57As does the way it's been beautifully furnished.
0:26:59 > 0:27:01Decorating, obviously, we've taken on and done ourselves,
0:27:01 > 0:27:05but in fairness our wives have got very much involved in decisions
0:27:05 > 0:27:08about what type of furnishings and curtains and that sort of thing.
0:27:08 > 0:27:12- We stayed out of that, didn't we? - Yeah, we're not guilty of that.- No.
0:27:12 > 0:27:14Well, I think they've done a great job
0:27:14 > 0:27:17and given the flat a lovely seaside feel.
0:27:17 > 0:27:21But if their wives, Sarah and Julie, were key to the interior design,
0:27:21 > 0:27:24how involved were their three teenage sons?
0:27:24 > 0:27:26They've all helped out, as well, where they can.
0:27:26 > 0:27:29So it has been a real family sort of endeavour, hasn't it?
0:27:29 > 0:27:32- Everybody's had a go. - Yeah, all been down here.
0:27:32 > 0:27:35- Boys have been painting. - Yeah, so it's been good.
0:27:38 > 0:27:41So, between the seven of them, I think they've done a magnificent job
0:27:41 > 0:27:45transforming this flat into a perfect seaside pad.
0:27:45 > 0:27:47But from an investment point of view,
0:27:47 > 0:27:50there was one element which held this flat back
0:27:50 > 0:27:53and that was the short 59-year lease it came with.
0:27:53 > 0:27:56So have they sorted that out now?
0:27:56 > 0:27:58We haven't extended it at the moment.
0:27:58 > 0:28:00- I don't think it would pay us to do that at the moment.- No.
0:28:00 > 0:28:03It is something that we might consider.
0:28:03 > 0:28:05Because we're using it, and we don't...
0:28:05 > 0:28:08You know, not interested in selling it on or renting it or anything,
0:28:08 > 0:28:12the lease doesn't really matter to us too much.
0:28:12 > 0:28:14Extending the lease will cost them money,
0:28:14 > 0:28:17but I think overall it would be money well spent.
0:28:17 > 0:28:20Particularly because they've now got such a fabulous flat.
0:28:20 > 0:28:25But how much have they spent so far to get it bang up-to-date?
0:28:25 > 0:28:28- We think about 6,6 at the moment is what we've done.- Yeah.
0:28:28 > 0:28:30Which has come in quite well.
0:28:33 > 0:28:36Wow, 6,600 is a slight underspend on their budget.
0:28:36 > 0:28:40That's good news. And with the £61,000 purchase price,
0:28:40 > 0:28:42without taxes and fees,
0:28:42 > 0:28:45their total spend would be just under 68,000.
0:28:45 > 0:28:48So has this been a good investment?
0:28:48 > 0:28:51What do two local estate agents think?
0:28:51 > 0:28:54I think it's a really nice flat. Being on the ground floor
0:28:54 > 0:28:57is going to make it suitable for lot of particular buyers.
0:28:57 > 0:28:59It's close to the sea and it's got a nice sea theme.
0:28:59 > 0:29:02I think the standard of finish is excellent.
0:29:02 > 0:29:05There's lots of little lovely touches in here
0:29:05 > 0:29:07which make it very, very attractive.
0:29:09 > 0:29:11That's encouraging.
0:29:11 > 0:29:14But having invested nearly £68,000 in the flat,
0:29:14 > 0:29:17what is it currently worth, bearing in mind that short lease?
0:29:17 > 0:29:19With the shorter lease,
0:29:19 > 0:29:22I'd value this property in the region of £115,000.
0:29:22 > 0:29:27I think this property would achieve £95,000.
0:29:27 > 0:29:32Because it would be available only to cash buyers.
0:29:32 > 0:29:36But, even so, that's a potential pre-tax profit
0:29:36 > 0:29:39of between 27 and 47,000.
0:29:39 > 0:29:42What do Andy and Mark make of that?
0:29:42 > 0:29:44I mean, it doesn't really matter to us,
0:29:44 > 0:29:48because, as I say, it's not what it's for. But that said I think that...
0:29:48 > 0:29:51- Pleasing to know, isn't it? Yeah. - Yeah, it's good.
0:29:51 > 0:29:53The agents thought that if the lease was extended,
0:29:53 > 0:29:57then the flat could increase in value by up to 25,000,
0:29:57 > 0:29:59certainly something worth pursuing.
0:29:59 > 0:30:01They also thought rental figures
0:30:01 > 0:30:06in the region of £300-£350 per calendar month could be possible.
0:30:06 > 0:30:09Which would generate a rental yield above 5%.
0:30:09 > 0:30:13So, as an investment, that would have been a very good outcome.
0:30:13 > 0:30:17But, as they've said, that's not what it's for.
0:30:17 > 0:30:19Pleased with the way it's turned out.
0:30:19 > 0:30:21I think that we've done a reasonable job
0:30:21 > 0:30:23between the two of us and all our helpers and everything,
0:30:23 > 0:30:26and, as we said before we started it, it's been fun.
0:30:26 > 0:30:28You know, really enjoyed it.
0:30:36 > 0:30:39The area around the River Clyde in Glasgow has,
0:30:39 > 0:30:44like many UK waterfronts, seen a bit of regeneration.
0:30:44 > 0:30:47I'm going south of the river to an area called Govanhill
0:30:47 > 0:30:50where relatively low prices have been attracting
0:30:50 > 0:30:52lots of property investors.
0:30:52 > 0:30:56Glasgow's urban train system will have you there from the city centre
0:30:56 > 0:30:58in under 10 minutes.
0:30:58 > 0:31:01And it's just round the corner from Queen's Park.
0:31:01 > 0:31:02I'm liking it already.
0:31:03 > 0:31:06We are really close to a range of good local shops,
0:31:06 > 0:31:10bars and restaurants here, and, with all that on your doorstep,
0:31:10 > 0:31:15consider this - a solid, period property in an area which is
0:31:15 > 0:31:18becoming increasingly popular amongst developers.
0:31:18 > 0:31:20Sound like a good investment?
0:31:20 > 0:31:22Well, I'm here to see a one-bedroom flat
0:31:22 > 0:31:25in this traditional Glaswegian tenement
0:31:25 > 0:31:29with a guide price of £30,000 plus.
0:31:29 > 0:31:31Now that has got to be worth a look.
0:31:39 > 0:31:42The building work over the road is a good sign,
0:31:42 > 0:31:45but sadly they don't build these handsome sandstone blocks
0:31:45 > 0:31:47like this any more.
0:31:47 > 0:31:50The controlled entrance, or close, to these flats
0:31:50 > 0:31:54sometimes have lovely tiles, although this is quite a plain one.
0:31:54 > 0:31:59There's a communal outside court, too, which is a real bonus.
0:31:59 > 0:32:02But for now it's up to the second floor.
0:32:04 > 0:32:06How fantastic.
0:32:06 > 0:32:09Now, I know this is typical of a tenemented building,
0:32:09 > 0:32:13because all the rooms go off the central hallway, but I love it.
0:32:13 > 0:32:17I would never tire of a property like this. Wow.
0:32:17 > 0:32:19Wow, so, you've got the bathroom there,
0:32:19 > 0:32:22you can see it needs a bit of TLC, it needs work doing.
0:32:22 > 0:32:25We've got the kitchen through there.
0:32:25 > 0:32:26A bedroom, I suppose.
0:32:27 > 0:32:32And through here an incredible space. Really big.
0:32:32 > 0:32:34What is it? A lounge, a living room?
0:32:34 > 0:32:37I suppose you could do what you want with the rooms, swap them around.
0:32:37 > 0:32:40Panelling at the back, big old windows.
0:32:40 > 0:32:42Now, this is quite interesting.
0:32:42 > 0:32:47It's just a cupboard. But what I've seen before, in these buildings,
0:32:47 > 0:32:50people actually sort of put the kitchen in here.
0:32:50 > 0:32:54You knock through and just create one large, open kitchen.
0:32:54 > 0:32:57I'm just wondering whether or not you could do this.
0:32:57 > 0:32:58Let's investigate the kitchen,
0:32:58 > 0:33:02and see whether that would be worth turning that into a bedroom?
0:33:02 > 0:33:04If you get my drift.
0:33:10 > 0:33:12This room is certainly big enough
0:33:12 > 0:33:15to make an open-plan kitchen/living area.
0:33:15 > 0:33:18But I've got a feeling space is not an issue here.
0:33:18 > 0:33:21As I suspected, the kitchen is massive.
0:33:21 > 0:33:25Wow, I would certainly love to have a kitchen this size in my house.
0:33:25 > 0:33:27It really is a luxury.
0:33:27 > 0:33:30But if you're buying this property as a buy-to-let,
0:33:30 > 0:33:33the way to go would be to have two bedrooms.
0:33:33 > 0:33:37You could easily convert this into a bedroom by putting a wall up here
0:33:37 > 0:33:41and using this space and the cupboard beyond as a kitchen.
0:33:41 > 0:33:45What I love about this property is there's so many different options.
0:33:45 > 0:33:47It's fantastic.
0:33:50 > 0:33:53Traditionally, two-bed flats are more appealing in a rental market,
0:33:53 > 0:33:58but an open-plan kitchen/living area can be equally as attractive.
0:33:58 > 0:34:01Or, of course, leave it as it is.
0:34:01 > 0:34:03I can't see any major problems here,
0:34:03 > 0:34:06it obviously needs to be stripped right back
0:34:06 > 0:34:08and started all over again.
0:34:08 > 0:34:11But with the room dimensions, original features
0:34:11 > 0:34:13and bags of potential,
0:34:13 > 0:34:15you'll certainly be starting off on the right foot.
0:34:16 > 0:34:19And at a guide price of an
0:34:19 > 0:34:25unbelievably brilliant £30,000, we asked a local estate agent along
0:34:25 > 0:34:29to cast his critical eye over this Glasgow tenement flat.
0:34:29 > 0:34:32This flat is very typical of what you would expect
0:34:32 > 0:34:35from a one bedroom with what we call a dining-sized kitchen.
0:34:35 > 0:34:37It gives a lot of options, because of the room sizes
0:34:37 > 0:34:41and conversion into an internal kitchen, providing two bedrooms.
0:34:41 > 0:34:44The area is more susceptible to people needing a two-bedroom flat,
0:34:44 > 0:34:46because of the demographics
0:34:46 > 0:34:48and the people that now live in the Govanhill area.
0:34:48 > 0:34:51So having more bedrooms would probably be more attractive,
0:34:51 > 0:34:53especially in the rental market.
0:34:53 > 0:34:54As I thought.
0:34:54 > 0:34:58But if it was left as a one-bedder, what rent could it command?
0:34:59 > 0:35:01If the property was done to a good standard,
0:35:01 > 0:35:04again, with new kitchen and bathroom, the rental value for it
0:35:04 > 0:35:07as it currently stands would be £400 per calendar month.
0:35:07 > 0:35:10And if it was converted into a two-bed?
0:35:10 > 0:35:12If the property was converted into a two-bedroom,
0:35:12 > 0:35:15the rental valuation would be £500 per calendar month.
0:35:15 > 0:35:18What about its sale value as a one-bed?
0:35:18 > 0:35:21If the property was done up to a good standard with new kitchen,
0:35:21 > 0:35:23new bathroom and internal decoration,
0:35:23 > 0:35:26I would expect it to achieve between £65,000 and £70,000.
0:35:26 > 0:35:27And a two-bed?
0:35:27 > 0:35:30If the property was converted into a two-bedroom property,
0:35:30 > 0:35:33taking away the internal walls, making an internal kitchen,
0:35:33 > 0:35:37the property would achieve between £70,000 and £75,000.
0:35:39 > 0:35:41This flat just screams potential.
0:35:41 > 0:35:44Yes, it needs lots of work and with lots of vision,
0:35:44 > 0:35:47I think this property could be turned back into something special.
0:35:47 > 0:35:50Let's see who thought the same when it went to auction.
0:35:55 > 0:35:58£30,000 plus seems a fair place to start.
0:35:58 > 0:36:01At £30,000, can't sell it without a bid.
0:36:01 > 0:36:03£25,000, then, let's get it started.
0:36:03 > 0:36:0725 here. At £25,000 on my left.
0:36:07 > 0:36:09In one, nice and easy.
0:36:09 > 0:36:11At 25, bid now.
0:36:11 > 0:36:1426, 27, madam.
0:36:14 > 0:36:1527, I've got, 28.
0:36:15 > 0:36:1729.
0:36:17 > 0:36:2030, shake of the head. With you at £29,000.
0:36:20 > 0:36:24At £29,000, first time.
0:36:24 > 0:36:27At £29,000 second time.
0:36:27 > 0:36:29I'll take it, 29 and a half, 30.
0:36:29 > 0:36:3130, I've got. And a half.
0:36:32 > 0:36:34Shake of the head. With you at 30, madam.
0:36:34 > 0:36:36Here to sell, it's in the room.
0:36:36 > 0:36:39At £30,000, first time.
0:36:39 > 0:36:40Second time.
0:36:40 > 0:36:44Third and final time at £30,000, all done, all out.
0:36:44 > 0:36:46Selling away. Well done, madam.
0:36:48 > 0:36:51Hidden from view was the successful bidder, Lorraine,
0:36:51 > 0:36:54who for bang on the guide price of £30,000,
0:36:54 > 0:36:57bought this with her husband, David.
0:36:57 > 0:36:59This is their first renovation job.
0:36:59 > 0:37:01MUSIC: "Get Lucky" by Daft Punk
0:37:03 > 0:37:05The couple currently live in London,
0:37:05 > 0:37:07where Lorraine used to work in advertising,
0:37:07 > 0:37:11but now works alongside David in his manufacturing company.
0:37:11 > 0:37:14Lorraine has plenty of family living here in Glasgow
0:37:14 > 0:37:17and felt this was the ideal place to get started.
0:37:18 > 0:37:21While David had to rush off to another appointment,
0:37:21 > 0:37:23Lorraine filled me in with their plans.
0:37:26 > 0:37:28- Lorraine, congratulations. - Thank you.
0:37:28 > 0:37:30Here you are, you've got the flat you wanted.
0:37:30 > 0:37:32- What was it like for you on auction day?- Terrifying.
0:37:33 > 0:37:37It was my first time actually bidding properly like a grown-up
0:37:37 > 0:37:38at an auction.
0:37:38 > 0:37:41I was by myself and I was absolutely petrified.
0:37:41 > 0:37:43Did you think you'd win the property on the day?
0:37:43 > 0:37:45No, I didn't, and I was...
0:37:45 > 0:37:49I watch the programme and that's the only reason we started doing this.
0:37:49 > 0:37:53Here we are running our own business and suddenly I just got so obsessed
0:37:53 > 0:37:57watching the programme and thinking, "I could do that, I could do that!"
0:37:57 > 0:37:59So I came into some money, sold a property in London
0:37:59 > 0:38:02and I'll give it a bash.
0:38:02 > 0:38:04Are you surprised with what you've paid?
0:38:04 > 0:38:06Not so much for the area,
0:38:06 > 0:38:10but, generally, with my understanding of property prices,
0:38:10 > 0:38:14it's incredible. Yes, it needs a lot of work doing to it,
0:38:14 > 0:38:18- but it's still a good buy. - Are you a property developer now?
0:38:18 > 0:38:22- Is this what you've always wanted to do?- I think so. That's the dream.
0:38:22 > 0:38:28I just love the concept of making something look fantastic,
0:38:28 > 0:38:30so you buy it like this and then in six months' time
0:38:30 > 0:38:33it looks amazing and, hopefully, you make some money on the way.
0:38:33 > 0:38:37Yes, the show is my absolute inspiration. It really was.
0:38:37 > 0:38:39I just hope I live up to the expectations.
0:38:41 > 0:38:43It's always great to meet a fan of the show,
0:38:43 > 0:38:46especially when we've managed to inspire them.
0:38:46 > 0:38:49So what has Lorraine learned from us? What are her plans?
0:38:51 > 0:38:52OK, well, initial thought was,
0:38:52 > 0:38:56"This is huge - let's make it a two-bedroom."
0:38:56 > 0:38:58Then we decided not to for the simple reason
0:38:58 > 0:39:01that it would involve planning permission.
0:39:01 > 0:39:02That could take time.
0:39:02 > 0:39:08My plan for his property is to renovate it and sell it straight on.
0:39:08 > 0:39:11So what sort of budget have you got to spend here?
0:39:11 > 0:39:17- I budgeted 15,000, which I thought was quite healthy.- Yes!
0:39:17 > 0:39:19I just didn't want any shocks or surprises
0:39:19 > 0:39:23and I had several builders recommended to me,
0:39:23 > 0:39:26so I got them all in at different times
0:39:26 > 0:39:28and they all put in the cost to me
0:39:28 > 0:39:31and it's come in a lot less than I'd planned,
0:39:31 > 0:39:35- so I'm even happier at the moment. - So what's it come in at? Do tell!
0:39:35 > 0:39:37- At the moment, we're at about 11. - Fantastic!
0:39:37 > 0:39:38That's a new kitchen, new bathroom...
0:39:38 > 0:39:41New kitchen, new bathroom, new flooring in the bathroom,
0:39:41 > 0:39:44cos there's a lovely hole in floor there.
0:39:44 > 0:39:47Carpets throughout, linoleum in the kitchen and in the bathroom.
0:39:47 > 0:39:50What about things like your beautiful cornicing there?
0:39:50 > 0:39:53- Are you going to try and restore that?- It's all being restored.
0:39:53 > 0:39:54- Fab!- Yeah, the guy who's doing it,
0:39:54 > 0:39:58he's basically stripping all the walls, relining them,
0:39:58 > 0:40:00making good where they need to be,
0:40:00 > 0:40:02and then redoing all the cornicing and the ceiling rose,
0:40:02 > 0:40:04just to get them back to how they would have looked
0:40:04 > 0:40:07when they were originally put in.
0:40:07 > 0:40:09Lorraine has obviously done her homework.
0:40:09 > 0:40:13She has a really healthy budget and a nice, simple renovation plan,
0:40:13 > 0:40:16plus she has given herself a four-month timescale.
0:40:17 > 0:40:22Although this is her first project, Lorraine seems to be cruising.
0:40:23 > 0:40:26So, Lorraine, what are you worried about with this purchase?
0:40:26 > 0:40:28I guess, like with anything, it's the budget.
0:40:28 > 0:40:31Having watched the show and listening to people saying,
0:40:31 > 0:40:36"Yeah, the budget was this and we ended up spending that",
0:40:36 > 0:40:37you learn a lot.
0:40:37 > 0:40:40You learn a lot from the good stuff and also from their mistakes.
0:40:40 > 0:40:42Obviously, knowing the area helps,
0:40:42 > 0:40:46but the research helped as well, just talking to family and friends up here
0:40:46 > 0:40:49before I made that decision, because although it's not a lot of money,
0:40:49 > 0:40:53it's a huge amount of money just to play around with, to think,
0:40:53 > 0:40:56"Oh, I'll just spend that and buy a flat."
0:40:56 > 0:40:59You need to do your homework and I absolutely did.
0:40:59 > 0:41:02The thing that kept going through my head was this legal pack thing,
0:41:02 > 0:41:06and, again, it's what you and Martin talk about all the time.
0:41:06 > 0:41:08- I was a wreck. - You read the legal pack?
0:41:08 > 0:41:11Read it? I was like Miss Marple!
0:41:11 > 0:41:13OK, give me five, I love that. That's what we like.
0:41:13 > 0:41:16# Hallelujah
0:41:16 > 0:41:21# Hallelujah... #
0:41:21 > 0:41:25Yes, it's finally happened after ten years on this programme -
0:41:25 > 0:41:27somebody's finally read the legal pack.
0:41:27 > 0:41:28Seriously, though,
0:41:28 > 0:41:31Lorraine's attention to detail could mean
0:41:31 > 0:41:34there won't be any nasty hidden bills lurking around the corner
0:41:34 > 0:41:36for her and her husband.
0:41:36 > 0:41:39Look, I'm so excited to see the flat when it's finished.
0:41:39 > 0:41:42It's been lovely to meet you and I absolutely love this property.
0:41:42 > 0:41:45- Thank you so much.- It's got a great feel about it. Congratulations.
0:41:45 > 0:41:46Thanks very much, Lucy.
0:41:46 > 0:41:50Lorraine and her husband, David, are venturing into property developing
0:41:50 > 0:41:55for the first time using the funds from the sale of her London flat.
0:41:55 > 0:41:58Lorraine hopes this will realise her lifelong dream
0:41:58 > 0:42:00of becoming a developer,
0:42:00 > 0:42:03but will it be all it's cracked up to be?
0:42:03 > 0:42:06You can find out how they both get on later in the programme.
0:42:09 > 0:42:11Well, we wait patiently for our purchasers
0:42:11 > 0:42:13to do work on their properties
0:42:13 > 0:42:16and sometimes they make an absolutely wonderful job of it.
0:42:16 > 0:42:20And sometimes, for various reasons, they don't do anything at all.
0:42:20 > 0:42:23Let's find out what happened in this instance.
0:42:26 > 0:42:30We return now to Codnor near Ripley in the county of Derbyshire.
0:42:32 > 0:42:35Earlier, I met father and daughter team Bob and Harriet,
0:42:35 > 0:42:38who, for £92,000,
0:42:38 > 0:42:44bought this three-bed detached house which had too many entrances
0:42:44 > 0:42:47and a strange conservatory-cum-kitchen
0:42:47 > 0:42:49complete with sliding doors.
0:42:51 > 0:42:53It's their second renovation property together,
0:42:53 > 0:42:57the only difference being that this time Bob is the sole investor
0:42:57 > 0:42:59and Harriet is on the payroll.
0:43:01 > 0:43:03They were undecided as to whether
0:43:03 > 0:43:05they would rent or sell the property,
0:43:05 > 0:43:08but had given themselves a relatively tight budget
0:43:08 > 0:43:10of just £6,000.
0:43:12 > 0:43:15- And you've got slave labour here. - Slave labour.
0:43:15 > 0:43:16No, I'll have to pay her this time.
0:43:16 > 0:43:18- Oh, are you?- Yeah.
0:43:18 > 0:43:20She doesn't have shares in the property this time,
0:43:20 > 0:43:21so she's going to be hired help.
0:43:21 > 0:43:24Have you negotiated a rate yet?
0:43:24 > 0:43:25Not yet, no.
0:43:25 > 0:43:27Is now the time to talk about it, maybe,
0:43:27 > 0:43:28and I can be the independent arbitrator?
0:43:28 > 0:43:31I think it'll be a zero-hours contract.
0:43:31 > 0:43:34Really?! They are very, very...
0:43:34 > 0:43:36Yes, they're a bit contentious at the moment.
0:43:36 > 0:43:39We're not going to have too many of them, no.
0:43:40 > 0:43:41We returned six months later
0:43:41 > 0:43:45to see how their second project together has gone.
0:44:03 > 0:44:07By replacing the dated archway with French doors,
0:44:07 > 0:44:09two living spaces have been created.
0:44:10 > 0:44:13The second opens into a modernised kitchen
0:44:13 > 0:44:15and it feels less conservatory-like
0:44:15 > 0:44:18as they've bricked up some of the windows,
0:44:18 > 0:44:20making it feel a bit more permanent.
0:44:22 > 0:44:25They've raised the floor by three inches and, look,
0:44:25 > 0:44:27no sliding door either.
0:44:29 > 0:44:32They've also reconfigured the side porch
0:44:32 > 0:44:35and old kitchen by pushing the door back in order to create
0:44:35 > 0:44:38a useful downstairs cloakroom under the stairs
0:44:38 > 0:44:41and knocking through into the old kitchen,
0:44:41 > 0:44:43creating a modern office space.
0:44:49 > 0:44:53The transformation continues upstairs, with new carpets
0:44:53 > 0:44:55and fresh paint turning these three bedrooms
0:44:55 > 0:45:00from dated and dowdy to chic and modern.
0:45:01 > 0:45:05Plus, a slick new bathroom suite has been added.
0:45:08 > 0:45:10But in my opinion,
0:45:10 > 0:45:13it's the change to the kitchen conservatory that really impresses.
0:45:15 > 0:45:18We didn't think most people would appreciate having to go through
0:45:18 > 0:45:21the patio door to make a cup of tea and then back again,
0:45:21 > 0:45:25to get the sugar and then back again to get the biscuits,
0:45:25 > 0:45:26and stepping down three inches
0:45:26 > 0:45:30and it was a bit like a conservatory-cum-kitchen.
0:45:30 > 0:45:32It didn't really work for us.
0:45:33 > 0:45:35We've embraced the kitchen into the house now.
0:45:37 > 0:45:40The bad garden is tidier and more appealing,
0:45:40 > 0:45:43complementing the extensive work done inside.
0:45:44 > 0:45:48Something tells me they've gone beyond that £6,000 budget,
0:45:48 > 0:45:51so what made them decide to make such big changes?
0:45:53 > 0:45:56The main issue with this house
0:45:56 > 0:46:00was whether to convert it for rental or resale.
0:46:00 > 0:46:03The valuations we had from the agents
0:46:03 > 0:46:07when they came round were quite conclusive, really.
0:46:07 > 0:46:12It seemed obvious that we should renovate it for resale
0:46:12 > 0:46:15and so that meant doing a lot more alterations
0:46:15 > 0:46:18than we thought we should do in the first place.
0:46:18 > 0:46:21We said we were going to keep the fireplace and the arch
0:46:21 > 0:46:27and they've all gone and we've spent about £9,000 altogether.
0:46:27 > 0:46:29Considering the work done here,
0:46:29 > 0:46:33I don't think an overspend of £3,000 is too bad,
0:46:33 > 0:46:35but then Bob did have handy Harriet.
0:46:38 > 0:46:43I stripped all the wallpaper from downstairs and upstairs
0:46:43 > 0:46:48and then painted it in magnolia
0:46:48 > 0:46:51and the ceilings as well.
0:46:51 > 0:46:54And did gloss painting on the doors as well.
0:46:54 > 0:46:57- You've acquired some techniques, haven't you?- Yes.
0:46:59 > 0:47:02With both Harriet and Bob having full-time jobs,
0:47:02 > 0:47:04how did they manage their time?
0:47:06 > 0:47:09On my chiropody, I've cut down to about three days a week,
0:47:09 > 0:47:15which has left four days to work here and it has been seven days a week
0:47:15 > 0:47:19for the past six months, so I'm feeling it a little bit now.
0:47:19 > 0:47:21I've had a couple of days off a week as well,
0:47:21 > 0:47:25so I've come down on most of my days off to come and help where I can.
0:47:25 > 0:47:29We've taken almost six months because we've done more than we thought
0:47:29 > 0:47:32and, to be honest, it's seemed a lot longer than that.
0:47:32 > 0:47:36There were various jobs that needed doing that we hadn't perhaps foreseen
0:47:36 > 0:47:39and changes to the plan that we'd made,
0:47:39 > 0:47:41so altogether, six months isn't too bad, I think.
0:47:43 > 0:47:47In total, Bob has spent £101,000 on this property,
0:47:47 > 0:47:51which is pretty good, considering the last-minute change of plan.
0:47:51 > 0:47:57So have six months and £101,000 been spent well?
0:47:57 > 0:48:01We asked two local estate agents along to take a look.
0:48:01 > 0:48:06It's clean, tidy, all neutral decor, new carpets.
0:48:06 > 0:48:10- It looks ready to move in to.- The layout is great for a modern family.
0:48:10 > 0:48:12It's got an open-plan dining kitchen,
0:48:12 > 0:48:17double doors through into the living area, downstairs cloakroom
0:48:17 > 0:48:20and two double-sized bedrooms to the first floor.
0:48:20 > 0:48:22Rental value,
0:48:22 > 0:48:26I would expect to achieve up to £525 per calendar month.
0:48:26 > 0:48:28If the property was to be let out,
0:48:28 > 0:48:33I would suggest £495 per calendar month and it would let very quickly.
0:48:33 > 0:48:35They're way out.
0:48:35 > 0:48:36Way out.
0:48:36 > 0:48:40If you look on the internet sites, at least 600 in this area.
0:48:40 > 0:48:44You can't get a three-bed detached for less than 600, renting out.
0:48:44 > 0:48:47So Bob is unimpressed by that evaluation,
0:48:47 > 0:48:50but it would still give a healthy yield of 6%.
0:48:50 > 0:48:54Hopefully, the resale evaluation will be more to his liking.
0:48:54 > 0:48:56I would suggest a realistic price
0:48:56 > 0:48:59to ask for this property now would be £130,000.
0:48:59 > 0:49:04I would suggest a sale value of approximately £130,000.
0:49:04 > 0:49:08- They're round about in the ball park, aren't they?- What we expected.
0:49:08 > 0:49:10Round about 130-odd. Yep, that's fine.
0:49:12 > 0:49:16Although those evaluations would give Bob a profit of £29,000,
0:49:16 > 0:49:18minus the usual fees and taxes,
0:49:18 > 0:49:21he has taken further advice since we visited
0:49:21 > 0:49:25and has put the house on the market at 155,000.
0:49:27 > 0:49:30All in all, this renovation is a real success,
0:49:30 > 0:49:33so are they up for property number three?
0:49:33 > 0:49:35Yes, we'll do it again, I think.
0:49:35 > 0:49:37It's just a question of finding the right property
0:49:37 > 0:49:38and selling this one on first.
0:49:38 > 0:49:40- Yep?- Yep.
0:49:51 > 0:49:54Back up now to Govanhill in Glasgow,
0:49:54 > 0:49:57where earlier we met Lorraine and David
0:49:57 > 0:50:01who for bang on the bargain guide price of £30,000
0:50:01 > 0:50:05had bought this classic one-bed Glasgow tenement flat.
0:50:06 > 0:50:09This was their first venture into property renovation
0:50:09 > 0:50:12and they had a simple "renovate and sell on" plan
0:50:12 > 0:50:15with Lorraine being the project manager.
0:50:17 > 0:50:19Lorraine, what are you worried about with this purchase?
0:50:19 > 0:50:22I guess, like with anything, it's the budget.
0:50:22 > 0:50:25Having watched the show and listening to people saying,
0:50:25 > 0:50:29"Yeah, the budget was this and then we ended up spending that",
0:50:29 > 0:50:30you learn a lot.
0:50:30 > 0:50:33You learn a lot from the good stuff and also from their mistakes,
0:50:33 > 0:50:37so you need to do your homework and I absolutely did.
0:50:38 > 0:50:43Lorraine was clearly full of enthusiasm for her first project.
0:50:43 > 0:50:46We've returned four months later to see the results.
0:50:56 > 0:51:00The new kitchen is modern and practical.
0:51:01 > 0:51:05By moving the sink and creating a window seat in its place,
0:51:05 > 0:51:09Lorraine has created a clean and spacious feel here.
0:51:13 > 0:51:16The living room has been stripped right back
0:51:16 > 0:51:21and repainted with original features restored, just as Lorraine promised.
0:51:24 > 0:51:28A fresh carpet leads out into the bright, clean hallway,
0:51:28 > 0:51:30where the superior finish continues.
0:51:33 > 0:51:35The bedroom that once felt cramped and dingy
0:51:35 > 0:51:38has now been opened up and cleaned up.
0:51:42 > 0:51:46Across the hallway, the tired old bathroom with a hole in the floor
0:51:46 > 0:51:49and a smell of damp is now, well, see for yourself.
0:51:59 > 0:52:01By replacing the damaged floorboards
0:52:01 > 0:52:04and laying attractive floor tiles found at a reclamation yard,
0:52:04 > 0:52:06as well as painting and re-plastering,
0:52:06 > 0:52:09Lorraine and David have achieved a good finish here.
0:52:14 > 0:52:17They decided against turning it into a two-bed and to be honest,
0:52:17 > 0:52:19the cost of doing that may have eaten into
0:52:19 > 0:52:21any profit they were likely to make.
0:52:25 > 0:52:28I am really impressed by what's been done to this property,
0:52:28 > 0:52:31and particularly so by the re-jigging in the kitchen.
0:52:33 > 0:52:36Traditionally in tenements, the sink would be here
0:52:36 > 0:52:38and it would block part of the window off
0:52:38 > 0:52:41and it just seemed a shame to lose that feature,
0:52:41 > 0:52:43so my very clever husband, David,
0:52:43 > 0:52:46suggested that we put in a window seat
0:52:46 > 0:52:50and my builder, Steven, actually built it, designed this
0:52:50 > 0:52:54and put it in, and I decorated it with scatter cushions.
0:52:56 > 0:52:59Not only have Lorraine and David transformed their flat,
0:52:59 > 0:53:01but by talking to the factor,
0:53:01 > 0:53:04the Scottish term for communal maintenance company,
0:53:04 > 0:53:07they got the stairs and the close painted and improved.
0:53:10 > 0:53:12And they've enhanced the kerb appeal by tidying up
0:53:12 > 0:53:14the area in front of the flats.
0:53:14 > 0:53:18The communal areas at the back are the council's responsibility
0:53:18 > 0:53:21and are due for renovation in the near future.
0:53:23 > 0:53:26I cannot fault their attention to detail,
0:53:26 > 0:53:28so break it down for me, Lorraine.
0:53:28 > 0:53:30Let's start from the beginning.
0:53:32 > 0:53:35We had to rip out the kitchen, lift up some of the floorboards,
0:53:35 > 0:53:41re-skin the walls and in the bathroom, pretty much the same.
0:53:41 > 0:53:45There was a damp patch on the ceiling which needed to be sealed
0:53:45 > 0:53:47and made good, which we had done,
0:53:47 > 0:53:49and then put down some lovely slate tiles
0:53:49 > 0:53:51which I bought from a reclamation yard,
0:53:51 > 0:53:55which I got a really good deal on, which I was very happy about!
0:53:55 > 0:53:57I think those are my two favourite rooms,
0:53:57 > 0:53:59because they've got the biggest transformation.
0:53:59 > 0:54:03They look really nice. I wouldn't mind living there.
0:54:03 > 0:54:06All the doors in the flat were all the original Victorian doors,
0:54:06 > 0:54:09but they'd been hidden with plasterboard
0:54:09 > 0:54:11and all kinds of stuff, so we had those ripped off
0:54:11 > 0:54:15and then the doors were taken away and dipped and stripped
0:54:15 > 0:54:19back to their original, as they would have been in the early 1900s.
0:54:19 > 0:54:20I love the character.
0:54:20 > 0:54:24It's a one-bedroom flat but it's just got oodles of character
0:54:24 > 0:54:27with the ceiling roses and the cornicing and the original doors.
0:54:27 > 0:54:30MUSIC: "Happy" by Pharrell Williams
0:54:35 > 0:54:38Lorraine has project managed from her home in London,
0:54:38 > 0:54:41visiting frequently over the four-month renovation period.
0:54:41 > 0:54:44So how has she found her first project?
0:54:45 > 0:54:48I think project managing generally,
0:54:48 > 0:54:50I come from the background of advertising,
0:54:50 > 0:54:54I worked in ad agencies most of my career, so that was my job,
0:54:54 > 0:54:57so I'm used to juggling lots of balls in the air.
0:54:57 > 0:55:01You just make it work. It's like any job. You just have to make it work.
0:55:01 > 0:55:04Lorraine's attention to detail and her research
0:55:04 > 0:55:07meant that she'd brought this project in at £14,000,
0:55:07 > 0:55:101,000 under her original budget.
0:55:12 > 0:55:14Now, I loved this flat before,
0:55:14 > 0:55:17but I think Lorraine has added value in all the right places.
0:55:17 > 0:55:20How does she feel, now that it's all over?
0:55:22 > 0:55:26It feels like a home, which it didn't when I bought it at auction.
0:55:26 > 0:55:30It was a bomb site and walking into the kitchen and the bathroom,
0:55:30 > 0:55:32it just feels really cosy and I think,
0:55:32 > 0:55:35although you can't take it too personally,
0:55:35 > 0:55:38I'm not buying this and doing this for me to live in,
0:55:38 > 0:55:41I think you can still have a sense of pride about what you're doing
0:55:41 > 0:55:44and still have that, "Gosh, I wouldn't mind living here
0:55:44 > 0:55:48"if I was not married, ten years younger and based in Scotland",
0:55:48 > 0:55:49but I'm really pleased.
0:55:49 > 0:55:52For me, that's been the highlights of this whole project,
0:55:52 > 0:55:54just walking in and seeing, "Wow."
0:55:57 > 0:56:01After a total spend of £44,000,
0:56:01 > 0:56:05I am so eager to see if Lorraine's homework's paid off.
0:56:05 > 0:56:08We've invited two local property experts to take a look.
0:56:11 > 0:56:13A huge difference. They've done a great job.
0:56:13 > 0:56:15Obviously, new kitchen and bathroom,
0:56:15 > 0:56:16all done to a very, very high standard
0:56:16 > 0:56:18with new carpets throughout the property.
0:56:18 > 0:56:20There's a feeling of space and light,
0:56:20 > 0:56:24so that's good and it will attract first-time buyers
0:56:24 > 0:56:26and landlords as well.
0:56:26 > 0:56:30This property should achieve around £450 per calendar month.
0:56:30 > 0:56:36I think it would achieve a rental value of £400 per calendar month.
0:56:36 > 0:56:37Well, that's pretty good.
0:56:37 > 0:56:39I hadn't looked at renting,
0:56:39 > 0:56:42but it's good to know, in case it doesn't sell.
0:56:43 > 0:56:46Taking the higher valuation of £450,
0:56:46 > 0:56:50that would bring a massive yield of around 12%.
0:56:52 > 0:56:56Will the sought-after sale price be as impressive?
0:56:56 > 0:56:59I would value this property at £65,000.
0:56:59 > 0:57:04A property like this should achieve around £70,000 in the current market.
0:57:04 > 0:57:06Little on the low side.
0:57:06 > 0:57:11A couple of agents came round last week and they were at the 70-mark,
0:57:11 > 0:57:16probably the home report would be 73, 75, but we'd look to get around 70.
0:57:18 > 0:57:21Fingers crossed, it'll be more my side than theirs.
0:57:22 > 0:57:24Lorraine may not be all that impressed
0:57:24 > 0:57:27with the low evaluation of 65,000,
0:57:27 > 0:57:31but that would still give her a possible profit of £21,000 -
0:57:31 > 0:57:35not to be sniffed at on your first property project.
0:57:35 > 0:57:37I'm really pleased with how it's turned out.
0:57:37 > 0:57:40The flat looks great and there was no major headaches,
0:57:40 > 0:57:44so if they were all like this, this would be my full-time career,
0:57:44 > 0:57:48but for now, back to London.
0:57:51 > 0:57:53Join us next time when we'll have more riveting stories
0:57:53 > 0:57:55from Britain's auction rooms.
0:57:55 > 0:57:56Yes, you wouldn't want to miss it -
0:57:56 > 0:57:59it could be your passport to a small fortune.
0:57:59 > 0:58:01- See you then!- Goodbye.- Goodbye.