Episode 3 Homes Under the Hammer


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The UK property auction market is a multi-million pound business.

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Those are big numbers, but don't let that put you off.

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No, auctions are open to everyone. It's a level playing field.

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All you need is confidence and a little bit of know-how.

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Well, with tens of thousands of properties going up for auction

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every year, there are such a variety on offer, from houses to barns,

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to bungalows - you name it!

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Well, here are what today's bidders bought when they put their hands up.

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In Ramsgate, a holiday home open to all.

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-So there's no rules, it's free for all.

-Yep.

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You'll be very welcome, just let us know when you want to come along.

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In Derbyshire, a property has left me lost for words!

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..Temporarity to it.

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Temporarr...you know what I mean! Temporariness?

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Well, you know the word.

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And up in Glasgow, a little tenement flat puts me in the party mood.

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Lorraine, I love that. Give me a high-five!

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All these properties have been sold at auction, and we'll find out who

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bought them and what they paid for them

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when they went under the hammer.

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Ah, the seaside!

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When the sun shines, there's no better place to be

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and this sunny bit of coastline is in Kent and the town of Ramsgate.

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A very short stroll from the harbour and we're on this simply stunning

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road, and it's lined with gorgeous grade 2 listed Regency terraces.

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Somewhat surprisingly, it was on this very street

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a young Vincent van Gogh spent time teaching French at a boys' school

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when he was strapped for cash.

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So, was it a masterpiece that went under the hammer?

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Well, what I can tell you is that it's a one-bedroom flat

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and it had a guide price of 25,000-£28,000.

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That seems very, very cheap!

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And this property is on the ground floor of this Georgian terrace,

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which looks really good from the outside,

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as does the communal hallway.

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This flat hasn't got an amazing sense of flow the minute you walk

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through the door. Lots of little corridors and doorways.

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The kitchen at the back.

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We've got a spacious bathroom there, and the living room.

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I'm actually going to show you the best bit first

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because look at this stunning Georgian bay window. Brilliant!

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But imagine waking up here - what shall I do today?

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I think I'll have a game of tennis, or I could just

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look at the sea view, and it really feels like a little holiday home.

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But what I want to do is put the kitchen in here because I think

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whoever wants to live here will want to make the most of that

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amazing view, so I'm just wondering whether we could push back and

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steal the bathroom space, but that would mean relocating the bathroom.

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# Ah, push it! #

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Yes, push that lounge wall back and stick in a kitchen

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and you may have yourself a great kitchen diner with sea views,

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and I may have found a solution to repositioning the bathroom.

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Do come in. Now, could this be the location for the bathroom?

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In the auction catalogue it's the dressing room, so let's think...

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The bathroom comes out of there, goes into here.

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You can make the lounge so much bigger.

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You can then use the kitchen as the bedroom because it's a much

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bigger, better shape, and then you'd have two nice size bedrooms.

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The only thing that's worrying me, is it could end up

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costing as much as the guide price of this flat to do all the work.

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Mind you, looking more closely at the flat,

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there's quite a lot of work generally

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so I think you'd be ripping out bathrooms and kitchens anyway.

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And certainly the plumbing and the electrics do need replacing,

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so rejigging the layout might add a little to your costs

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but not significantly, and certainly overall it would be worth doing,

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especially with such a potentially great flat.

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Not only does it have sea views,

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there's even the added bonus of a small courtyard

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off the main bedroom.

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So, a low-ish guide price of 25,000-£28,000 here.

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No, it's not in great nick but it turns out there's another reason.

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That's because the lease has just 59 years left to run,

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which equals problems getting any kind of finance on this place,

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and a substantial sum to fork out when you want to extend it.

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And extend it you must,

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because the longer you leave it, the pricier it gets.

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The cost of extending the lease varies from property to property,

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but it is something you need to factor into your budget.

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And then there's the mortgage issue.

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Many lenders don't lend property with a lease shorter than 70 years.

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There are specialists on short lease mortgages

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so that might be one route you could go, but usually properties

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with these sort of issues are ones for cash buyers only.

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You could try to buy the freehold with the other owners.

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That could take time though.

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Anyway, the bottom line here is, if you are looking to turn

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a property around quickly, a short lease is probably not for you.

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What does a local estate agent make of this Georgian one-bed flat?

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I think it needs completely re-jigging around.

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If you can move kitchens, bathrooms, and create a proper two-bedroom

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apartment with good-sized bedrooms, I think that will be a winner.

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Because it's got a garden and a ground floor,

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this is where it appeals to everybody.

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It seems we're both on the same page about changing the layout,

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but if the work was carried out and the lease extended, what could

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this flat that was guided at £25,000-28,000 potentially be worth?

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Whilst fully renovated,

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I personally think it would be about £85,000-90,000.

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And what about rental values?

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For rental purposes, I think

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you'd get anywhere between £550-650 per calendar month.

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A gorgeous road, a fabulous location, a prestigious heritage.

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This lot has it all,

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and a whacking great lump sum to extend the lease as well! But hey,

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you weren't expecting something stunning AND simple, were you?

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Let's see who went for it anyway at the auction.

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We're going to start... We could start at £25,000.

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25,000.

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I did see the hand sitting down first so I've got 25, I'm going

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to take 28 from you, sir. 28, and 30. At 30 and two.

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At 30... 32 on the trellis, standing.

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And 35 sitting, 38 now, it's against both of you.

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At 38, 38 sitting in front of me. And now 40 if you like.

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40 I have with you, madam. And two, 42. At 42, standing again.

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45, 45, and eight.

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48. 48, sitting in front of me further down.

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48 and 50, it's against you. At 50, at 50 and two.

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52. At 52, I've got in the room again.

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And 55 now, it's against you. 55, is with you. And 58.

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It's back with you if you like. 58, and nine. 59. 59.

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59 I've got at the back. 60, and one.

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61. At 61 at the back. 61, he says yes.

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At 62. 62? For the first time then at 61,000,

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61,000 for the second time.

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61,000 for the third and final time.

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And so, for over double the guide price at £61,000,

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the successful bidder for the one-bed Ramsgate flat was Andy,

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who bought it jointly with his friend Mark at the back here

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as a holiday home for their two families to use.

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# I need a holiday. (I need a holiday!)

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# I need a holiday with my friends

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# I'm working every day (I need a holiday)

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# I'm working every day through the weekend #

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While the rest of the family went to enjoy the delights

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of Ramsgate, I caught up with Mark and Andy to find out how

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they were going to make it a holiday home suitable for all seven of them!

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Andy and Mark, congratulations. What a fantastic little flat this is!

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-Yes.

-No, we're very pleased, very pleased indeed.

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Were you always as two families looking for a little holiday home?

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No, the brochure has been coming in for years to my office

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and I've always put it to one side and never bothered with it.

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Then all of a sudden, I picked it up, had a look,

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-and that's how it started really.

-And then you got the call?

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Yeah, we'd been down to Ramsgate last year

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for Andy's 50th birthday and stayed here for the weekend.

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We'd been a few times and it's always been nice down here.

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Was it, the minute you saw it, you had to have it kind of thing?

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No, the position of it is really what sold it to us.

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With plans currently for this to be a long term holiday home,

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the short lease wasn't a major problem for Mark and Andy,

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but they are hoping, together with the other flat owners,

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to buy the freehold of the building or extend the lease.

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But first, they need to sort out the flat and its current layout.

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The first thing I thought when I walked into this flat was,

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"I would like this room to be bigger

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"and I would like the kitchen in here because I would like to be

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"making my tea and toast and looking at that view."

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-Are you along the same thought process?

-We are, because this room is particularly light,

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which is what we liked, but what we thought was, if the kitchen comes

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forward and sits behind the wall, we could open that up

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so that the kitchen comes straight through into this room.

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Not totally by taking the wall out, but putting an opening in there.

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Then we can have a bit of a kitchen bar that comes into this room.

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I'm so pleased we're thinking along the same lines, using that bathroom

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space to create a better living area

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will be so much more family-friendly.

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But the big question is, where are you going to put that bathroom?

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Well, we've sort of come up with an idea in the back half, where you've

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got the sort of small room that's been divided and then taken apart.

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We're going to divide that again and just put a small shower room

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in there, toilet bath, and then have another small sort of room

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probably for the kids to have their games and things in.

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So that leaves the second bedroom and that will go in the kitchen?

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-What is now the kitchen, yes.

-That's the idea.

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The kitchen will come forward

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and then we'll have two reasonable size bedrooms in.

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And what would the budget be for both of you?

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We've got up to maybe nine.

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-That's a bit tight!

-We can do a fair bit on our own.

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So how handy are you two?

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-I work in the construction industry.

-Oh, OK.

-Which is useful.

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-I'm a ground work contractor, so...

-That's going to be very useful.

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Yes, there's a few people we know we can call in for some favours

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and bits and pieces.

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-And I work in newspapers, I'm a newspaper editor, so...

-OK.

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With both of them working, this will be a weekend project

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and they hope it'll be ready as a holiday home in three to six months.

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How are you going to work out the timetable?

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Are you going to come all at the same time?

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Are you going to split it all up?

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We might come at the same time sometimes.

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We've had no thoughts on it really.

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The idea is to try and use it just as a weekend thing, with

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-the children as well, altogether.

-So there's no rules, it's free for all.

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If you want to come down, come down.

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-When people are staying, they're staying.

-There's room to stay.

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You'll be very welcome, just let us know when you want to come along!

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Did you take the hint? I really want to come and stay, it's so much fun.

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-So, are the kids all excited?

-Oh, they are, yes.

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They're playing tennis already so we'll have to go and stop them

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from that to get them started on the work when we need them!

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Oh, guys, I'm really excited.

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I really love this property, I think it's absolutely superb.

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Can't wait to see the outcome of this happy little Ramsgate flat.

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-Well done.

-Thank you very much indeed.

-Thanks very much.

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Andy and Mark have got a fabulous flat here. I love it!

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Did you get that impression?!

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It's all fun, fun, fun at the moment

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and I hope they still feel that way when the renovation is in full swing

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and that nine grand, well, it's disappearing fast.

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Find out how it all goes later in the programme.

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So, am I going to be just as excited about our next property

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here in Codnor in Ripley in the Amber Valley district of Derbyshire?

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Derbyshire is an area steeped in mining heritage and the village

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of Codnor with its handy links to Derby and Nottingham is a good place

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for a would-be commuter looking for affordably-priced housing.

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So, what was on offer at the auction?

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Well, something which I imagine was a very popular lot.

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Guide price apart, which I'll come to,

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the fact was it was a detached house,

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and a really nice-looking one, too.

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That guide price was £87,000. You know what? It looks like a doozy.

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And so...we explore.

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Really nice-sized living room - it's dual aspect.

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Goes a bit strange when you come into this rear area, though,

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because you've got a door here leading out

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to a sort of entrance area and a downstairs loo.

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That was the original kitchen,

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which seriously is not adequate for this size of house.

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Which is why...

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somebody came up with a solution.

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Presumably, these sliding doors used to lead out into the rear garden,

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but they now need out into, ta-da, a very light, airy kitchen.

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And anything like this always has a slight sense of temporarity to it.

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Tempo... You know what I mean - temporariness...

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Well, you know the word. It seems a little bit temporary.

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Apart from that, it's got a nice feel to it,

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and certainly it's infinitely better than that,

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although I would like to think...

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Knock down a few walls and maybe take this back inside.

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# Hey, baby! I don't know what came over me... #

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Temporary or up for keeps,

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this extension's structure needs to be checked out.

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Then I reckon if you were to combine the three spaces currently housing

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this tiny kitchen, this side vestibule and the downstairs loo,

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you could create yourself a good-sized kitchen.

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Then you could turn this into what probably most people

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would be looking for at this part of the house -

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a sun lounge or a conservatory -

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something with that less temporari-rull-riness.

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Well, upstairs, pretty much what you'd expect -

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there's three bedrooms, a bathroom,

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which looks to be in fairly decent nick.

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Like the rest of the house, if you were renting it out,

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pretty much leave it as it is.

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What is quite interesting, though,

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cos I reckon at some point this has been a two-bedroom property,

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because there's an extra doorframe here.

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This has obviously been divided by these partition walls

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to create two bedrooms, so you've got three in total.

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But that room there is very, very, very small.

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Erm...is it better like this?

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Don't know. Don't know.

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Actually, you'd probably leave it as it is,

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but it's interesting how it was originally designed.

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The decor and fittings are obviously tired, but overall I'm impressed.

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It wouldn't take too much elbow grease to get this place

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looking up-to-date and family-friendly.

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Time to explore outside.

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Well, you certainly can't complain

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about the of number entrances to the property.

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One at the front, one at the back and one at the side.

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Come out of that one and you come into this little driveway.

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Bit narrow, a bigger car might have issues getting through here,

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but the good news is there is at least a garage.

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There is also, joy of joys, a really nice-sized garden.

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It's kind of terraced, goes back quite a long way,

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but with a good few hours with a strimmer,

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I reckon you could turn this into a very pleasant spot.

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I love a nice bit of garden,

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it looks as though someone once loved this one.

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I hope it gets brought back to its former glory.

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At a guide price of £87,000,

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this is a lot of house and garden for your money.

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Time to seek out the expert opinion of a local estate agent.

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This is a nice, traditionally-styled house.

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It's got three bedrooms, it's got off-street parking, it's got gardens.

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It's ready for a little bit more updating and TLC.

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What does the agent make of that third bedroom?

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Would this be better as a two or a three-bedroom house?

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I think the demand for three-bedroom houses is such

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that it wouldn't pay to knock the first and the third bedroom

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back into one large double room. I would keep it as three bedrooms.

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OK, so what kind of resale price would you get

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for this as a three-bed, refurbished house?

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Once the property has been renovated,

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we would suggest an asking price of £135,000.

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And if it was rented out?

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The property would let quite easily at £550 per calendar month.

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Quite unusual to find a property like this around these parts -

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three bedrooms, detached -

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and still these days there are a lot of people

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who love the appeal of a detached house.

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So did it get a premium at the auction?

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Let's find out when it went under the hammer.

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86. Bid me where you like, 85 for the three-bed-detached house.

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It's got to be value, surely. 85,000 for it.

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85, I've got here, thank you.

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At £85,000, 86 at the back.

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86,000, 87 is bid.

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At 87, 88? Thank you, 88.

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88,000, 89?

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89 is bid.

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90,000. At 90. 91?

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Shakes his head. 91 at the back there.

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91, 92?

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91, 92.

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At 92, 93?

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£92,000 here against you there.

0:18:180:18:21

At 92,000, for the first time.

0:18:210:18:24

For the second time, third chance, any higher bid?

0:18:240:18:28

Sold at 92,000, thank you.

0:18:280:18:30

The successful bidder was Bob and 23-year-old daughter Harriet

0:18:330:18:37

who for £92,000 paid just £5,000 over the guide price.

0:18:370:18:43

We met them last year on their first property development

0:18:430:18:47

when they renovated a two-bedroom terrace

0:18:470:18:49

in the nearby village of Heanor.

0:18:490:18:51

Harriet was so pleased with how it turned out,

0:18:510:18:54

that she quite fancied moving into it herself.

0:18:540:18:58

I met them back at this property to catch up.

0:18:580:19:01

Bob, Harriet, great to see you again!

0:19:020:19:05

Nice to see you again, Martin.

0:19:050:19:06

-Yeah, obviously we didn't put you off last time.

-Not quite. Almost.

0:19:060:19:10

-Or the experience. How did it all go?

-It went really well, actually.

0:19:100:19:13

Really pleased with the outcome, aren't we?

0:19:130:19:15

Yeah, and I'm living in that one now, as well.

0:19:150:19:17

You are. Onto project number two, is it?

0:19:170:19:20

-We've been looking since we finished the first one.

-Right.

0:19:200:19:23

Took a while to find something suitable.

0:19:230:19:25

Eventually, we took the courage to go to the auction again, didn't we?

0:19:250:19:29

-Yeah.

-What was it that appealed to you, Bob?

0:19:290:19:31

There aren't many three-bed detached available in this area

0:19:310:19:35

for a reasonable price.

0:19:350:19:36

And there were several properties we were looking at

0:19:360:19:39

at the auction, but this one really was the one

0:19:390:19:42

that I thought would be the best for us.

0:19:420:19:44

Harriet will definitely not be moving into this one.

0:19:440:19:47

This is strictly business.

0:19:470:19:49

So what did she learn from the last one?

0:19:490:19:51

Well, obviously, I was doing a lot of painting, which...

0:19:510:19:54

I've never painted a wall before, to be honest.

0:19:540:19:56

So I think I'll be a lot better at it

0:19:560:19:58

-and quicker this time, probably....

-Right.

-..than I was last time.

0:19:580:20:03

Now that I know what I'm doing.

0:20:030:20:04

So, what are the plans for this one?

0:20:040:20:06

What do you think, Harry? Go first.

0:20:060:20:08

We're thinking of perhaps making that area into a study-utility room.

0:20:080:20:14

-OK.

-Yeah, there are three doors to the house,

0:20:140:20:16

which is a bit over the top.

0:20:160:20:18

The side door opens up into a sort of a strange entry lobby.

0:20:180:20:23

To the side of that is the old kitchen, which is now the utility.

0:20:230:20:26

We might be able to make that into one room.

0:20:260:20:28

Right, knock a wall down then.

0:20:280:20:29

Knock a wall down. Put another wall up outside.

0:20:290:20:32

Use it as inside space. Not sure yet, it depends on what's holding what up.

0:20:320:20:37

And the sliding doors out into the kitchen area, you know...

0:20:370:20:40

It's not ideal to have your kitchen out there

0:20:400:20:43

in what looks like half a conservatory. It isn't.

0:20:430:20:46

I don't think we'll be able to get the kitchen inside anywhere,

0:20:460:20:49

-so I think it'll stay.

-It'll stay as it is.

0:20:490:20:51

And then upstairs?

0:20:510:20:53

Upstairs, you've got two big double bedrooms, one tiny single room

0:20:530:20:57

and a bathroom.

0:20:570:20:59

-Nothing you could do apart from...make them good.

-Just, yeah...

0:20:590:21:01

-All in all, the house isn't in bad nick, is it?

-No, it's quite good.

0:21:010:21:05

Bob and Harriet plan to leave this as a three-bedroomed house.

0:21:050:21:09

And since it's in such reasonable condition,

0:21:090:21:11

they reckon a budget of £6,000 will be enough

0:21:110:21:14

to renew the kitchen and bathroom.

0:21:140:21:16

Last time, Harriet was a business partner, but this time she's staff.

0:21:160:21:21

-No, I'm going to have to pay her this time.

-Oh, are you?

-Yeah.

0:21:210:21:24

-Have you negotiated a rate yet?

-Not yet, no.

0:21:240:21:27

Is now the time to talk about it, maybe?

0:21:270:21:29

When I can be an independent arbitrator?

0:21:290:21:31

I think it'll be a zero-hours contract.

0:21:310:21:33

Oh, really? They are very, very...

0:21:330:21:35

Yes, they're a bit contentious at the moment.

0:21:350:21:39

# Walked all day till my feet were tired

0:21:390:21:44

# I was low I just couldn't get hired

0:21:440:21:49

# I got a job

0:21:490:21:50

# Sha-na-na-na, sha-na-na-na-na

0:21:500:21:53

# I got a job. #

0:21:530:21:56

Good work, Bob, make the kids earn their keep.

0:21:580:22:01

Bob and Harriet have two timescales for this project.

0:22:010:22:04

Just four weeks, if they decide to rent the property out.

0:22:040:22:08

Or, if they decide to sell it,

0:22:080:22:09

four to five months, which I think is a little more realistic.

0:22:090:22:13

So, one project down, one to go. Will they be carrying on?

0:22:130:22:17

If it works out, possibly another one again.

0:22:210:22:24

Depending what we do with this one, obviously.

0:22:240:22:26

-Does that fit in with your...?

-Yes, I think we'll keep doing them.

0:22:260:22:29

As long as there's money around, we'll do another one.

0:22:290:22:33

Money runs out, then we'll retire.

0:22:330:22:36

So, father and daughter, Bob and Harriet,

0:22:370:22:40

embarking on their second property development project together.

0:22:400:22:44

This time, with Harriet's honed painting skills coming into play.

0:22:440:22:48

How will they get on? You can find out later in the show.

0:22:480:22:52

In Glasgow, a first-time developer does her homework.

0:22:530:22:56

-You read the legal pack.

-Read it? I was like Miss Marple.

-Good girl!

0:22:580:23:02

In Derbyshire, when it comes to this detached house,

0:23:040:23:07

Bob gets an A for effort.

0:23:070:23:09

It has been seven days a week for the past six months.

0:23:090:23:12

It was in the seaside town of Ramsgate in Kent,

0:23:150:23:18

just along from the seafront,

0:23:180:23:20

that we came across a Georgian one-bedroom flat.

0:23:200:23:23

And, though tired and dated, its high ceilings and large front lounge

0:23:230:23:27

with bay windows gave this flat a really lovely feel.

0:23:270:23:31

It even had the bonus of a small courtyard garden.

0:23:310:23:35

But the flat only had a short lease, and the layout wasn't quite right.

0:23:350:23:40

It wasn't really making the most of those wonderful sea views,

0:23:400:23:43

and the pleasant aspect out front.

0:23:430:23:46

But it was bought for 61,000 at auction by friends Mark and Andy

0:23:460:23:50

as a holiday home for their two families

0:23:500:23:53

and they had grand plans for it.

0:23:530:23:55

Cos this room's particularly light, which is what we liked.

0:23:550:23:58

But what we thought was, if the kitchen comes forward

0:23:580:24:00

and sits behind the wall, we could open that up,

0:24:000:24:02

so the kitchen comes straight through into this room.

0:24:020:24:05

But the big question is where are you going to put that bathroom?

0:24:050:24:08

Well, we've sort of come up with an idea in the back half,

0:24:080:24:11

where you've got the small room that's been divided

0:24:110:24:14

-and then taken apart.

-Yes.

-We're going to divide that again

0:24:140:24:16

and just put a small shower room in there, toilet, bath,

0:24:160:24:19

and then have another small room

0:24:190:24:20

for the kids to have their games and things in.

0:24:200:24:22

So, that leaves the second bedroom and that will go in the kitchen?

0:24:220:24:25

-What is now the kitchen.

-Yes.

0:24:250:24:27

Andy is a newspaper editor,

0:24:290:24:31

while Mark works in civil engineering,

0:24:310:24:34

and the plan was that along with their wives, Julie and Sarah,

0:24:340:24:37

and their three teenage sons,

0:24:370:24:39

this team of seven was to do the majority

0:24:390:24:41

of the renovation work themselves -

0:24:410:24:43

tackling the tasks mainly at weekends

0:24:430:24:45

and to use Mark's trade contacts for specialist areas,

0:24:450:24:49

such as plumbing and electrics.

0:24:490:24:51

They were hoping that a budget of £9,000

0:24:510:24:54

and a rough timescale of three to six months

0:24:540:24:57

would see their seaside retreat ready to be used

0:24:570:25:00

for rest and relaxation.

0:25:000:25:02

And now, just under six months later, we're back.

0:25:050:25:09

And the paintbrushes have been out -

0:25:090:25:12

the exterior of the flat is now a crisp white,

0:25:120:25:15

and the front doors and railings

0:25:150:25:17

have been given a fresh lick of paint that van Gogh himself,

0:25:170:25:20

oh, he would have been so proud of!

0:25:200:25:23

And inside, what a transformation!

0:25:230:25:26

This was a living room, it stayed the same,

0:25:260:25:28

what was the original bathroom is now a small, sort of, kitchen.

0:25:280:25:32

The original kitchen is now the decent-sized second bedroom.

0:25:380:25:42

And they've maximised the space by furnishing with bunk beds. Ideal!

0:25:420:25:48

The middle room, we've divided into two, to make a small sort of study,

0:25:480:25:52

come occasional bedroom, plus a bathroom or shower room.

0:25:520:25:55

That's a much better use of that room

0:25:580:26:00

that was described as the dressing room at the auction.

0:26:000:26:04

All the bedrooms have bunks to allow for flexibility

0:26:040:26:07

for both families and the back bedroom has access

0:26:070:26:10

to the pretty back courtyard.

0:26:100:26:12

We've changed pretty much everything.

0:26:140:26:15

But we certainly had to do all of the electrics,

0:26:150:26:18

some plumbing we've had to do.

0:26:180:26:20

And then an awful lot of doing up and decorating

0:26:200:26:22

that we've mainly done ourselves.

0:26:220:26:24

Clearly, with areas such as the electrics and the plumbing,

0:26:250:26:28

the old had to go.

0:26:280:26:30

But that wasn't the case with everything.

0:26:300:26:33

A couple of features we found - the wooden panelling in the front room,

0:26:330:26:37

which was hidden by hardboard, revealed.

0:26:370:26:39

We took the gas fire off the wall,

0:26:390:26:42

and revealed the opening, put a sort of period fireplace

0:26:420:26:45

surrounding it and a basket.

0:26:450:26:47

We tried to match in as best we can with what we've done of other stuff.

0:26:470:26:51

I think the character features really add so much to this flat.

0:26:510:26:54

As does the way it's been beautifully furnished.

0:26:540:26:57

Decorating, obviously, we've taken on and done ourselves,

0:26:590:27:01

but in fairness our wives have got very much involved in decisions

0:27:010:27:05

about what type of furnishings and curtains and that sort of thing.

0:27:050:27:08

-We stayed out of that, didn't we?

-Yeah, we're not guilty of that.

-No.

0:27:080:27:12

Well, I think they've done a great job

0:27:120:27:14

and given the flat a lovely seaside feel.

0:27:140:27:17

But if their wives, Sarah and Julie, were key to the interior design,

0:27:170:27:21

how involved were their three teenage sons?

0:27:210:27:24

They've all helped out, as well, where they can.

0:27:240:27:26

So it has been a real family sort of endeavour, hasn't it?

0:27:260:27:29

-Everybody's had a go.

-Yeah, all been down here.

0:27:290:27:32

-Boys have been painting.

-Yeah, so it's been good.

0:27:320:27:35

So, between the seven of them, I think they've done a magnificent job

0:27:380:27:41

transforming this flat into a perfect seaside pad.

0:27:410:27:45

But from an investment point of view,

0:27:450:27:47

there was one element which held this flat back

0:27:470:27:50

and that was the short 59-year lease it came with.

0:27:500:27:53

So have they sorted that out now?

0:27:530:27:56

We haven't extended it at the moment.

0:27:560:27:58

-I don't think it would pay us to do that at the moment.

-No.

0:27:580:28:00

It is something that we might consider.

0:28:000:28:03

Because we're using it, and we don't...

0:28:030:28:05

You know, not interested in selling it on or renting it or anything,

0:28:050:28:08

the lease doesn't really matter to us too much.

0:28:080:28:12

Extending the lease will cost them money,

0:28:120:28:14

but I think overall it would be money well spent.

0:28:140:28:17

Particularly because they've now got such a fabulous flat.

0:28:170:28:20

But how much have they spent so far to get it bang up-to-date?

0:28:200:28:25

-We think about 6,6 at the moment is what we've done.

-Yeah.

0:28:250:28:28

Which has come in quite well.

0:28:280:28:30

Wow, 6,600 is a slight underspend on their budget.

0:28:330:28:36

That's good news. And with the £61,000 purchase price,

0:28:360:28:40

without taxes and fees,

0:28:400:28:42

their total spend would be just under 68,000.

0:28:420:28:45

So has this been a good investment?

0:28:450:28:48

What do two local estate agents think?

0:28:480:28:51

I think it's a really nice flat. Being on the ground floor

0:28:510:28:54

is going to make it suitable for lot of particular buyers.

0:28:540:28:57

It's close to the sea and it's got a nice sea theme.

0:28:570:28:59

I think the standard of finish is excellent.

0:28:590:29:02

There's lots of little lovely touches in here

0:29:020:29:05

which make it very, very attractive.

0:29:050:29:07

That's encouraging.

0:29:090:29:11

But having invested nearly £68,000 in the flat,

0:29:110:29:14

what is it currently worth, bearing in mind that short lease?

0:29:140:29:17

With the shorter lease,

0:29:170:29:19

I'd value this property in the region of £115,000.

0:29:190:29:22

I think this property would achieve £95,000.

0:29:220:29:27

Because it would be available only to cash buyers.

0:29:270:29:32

But, even so, that's a potential pre-tax profit

0:29:320:29:36

of between 27 and 47,000.

0:29:360:29:39

What do Andy and Mark make of that?

0:29:390:29:42

I mean, it doesn't really matter to us,

0:29:420:29:44

because, as I say, it's not what it's for. But that said I think that...

0:29:440:29:48

-Pleasing to know, isn't it? Yeah.

-Yeah, it's good.

0:29:480:29:51

The agents thought that if the lease was extended,

0:29:510:29:53

then the flat could increase in value by up to 25,000,

0:29:530:29:57

certainly something worth pursuing.

0:29:570:29:59

They also thought rental figures

0:29:590:30:01

in the region of £300-£350 per calendar month could be possible.

0:30:010:30:06

Which would generate a rental yield above 5%.

0:30:060:30:09

So, as an investment, that would have been a very good outcome.

0:30:090:30:13

But, as they've said, that's not what it's for.

0:30:130:30:17

Pleased with the way it's turned out.

0:30:170:30:19

I think that we've done a reasonable job

0:30:190:30:21

between the two of us and all our helpers and everything,

0:30:210:30:23

and, as we said before we started it, it's been fun.

0:30:230:30:26

You know, really enjoyed it.

0:30:260:30:28

The area around the River Clyde in Glasgow has,

0:30:360:30:39

like many UK waterfronts, seen a bit of regeneration.

0:30:390:30:44

I'm going south of the river to an area called Govanhill

0:30:440:30:47

where relatively low prices have been attracting

0:30:470:30:50

lots of property investors.

0:30:500:30:52

Glasgow's urban train system will have you there from the city centre

0:30:520:30:56

in under 10 minutes.

0:30:560:30:58

And it's just round the corner from Queen's Park.

0:30:580:31:01

I'm liking it already.

0:31:010:31:02

We are really close to a range of good local shops,

0:31:030:31:06

bars and restaurants here, and, with all that on your doorstep,

0:31:060:31:10

consider this - a solid, period property in an area which is

0:31:100:31:15

becoming increasingly popular amongst developers.

0:31:150:31:18

Sound like a good investment?

0:31:180:31:20

Well, I'm here to see a one-bedroom flat

0:31:200:31:22

in this traditional Glaswegian tenement

0:31:220:31:25

with a guide price of £30,000 plus.

0:31:250:31:29

Now that has got to be worth a look.

0:31:290:31:31

The building work over the road is a good sign,

0:31:390:31:42

but sadly they don't build these handsome sandstone blocks

0:31:420:31:45

like this any more.

0:31:450:31:47

The controlled entrance, or close, to these flats

0:31:470:31:50

sometimes have lovely tiles, although this is quite a plain one.

0:31:500:31:54

There's a communal outside court, too, which is a real bonus.

0:31:540:31:59

But for now it's up to the second floor.

0:31:590:32:02

How fantastic.

0:32:040:32:06

Now, I know this is typical of a tenemented building,

0:32:060:32:09

because all the rooms go off the central hallway, but I love it.

0:32:090:32:13

I would never tire of a property like this. Wow.

0:32:130:32:17

Wow, so, you've got the bathroom there,

0:32:170:32:19

you can see it needs a bit of TLC, it needs work doing.

0:32:190:32:22

We've got the kitchen through there.

0:32:220:32:25

A bedroom, I suppose.

0:32:250:32:26

And through here an incredible space. Really big.

0:32:270:32:32

What is it? A lounge, a living room?

0:32:320:32:34

I suppose you could do what you want with the rooms, swap them around.

0:32:340:32:37

Panelling at the back, big old windows.

0:32:370:32:40

Now, this is quite interesting.

0:32:400:32:42

It's just a cupboard. But what I've seen before, in these buildings,

0:32:420:32:47

people actually sort of put the kitchen in here.

0:32:470:32:50

You knock through and just create one large, open kitchen.

0:32:500:32:54

I'm just wondering whether or not you could do this.

0:32:540:32:57

Let's investigate the kitchen,

0:32:570:32:58

and see whether that would be worth turning that into a bedroom?

0:32:580:33:02

If you get my drift.

0:33:020:33:04

This room is certainly big enough

0:33:100:33:12

to make an open-plan kitchen/living area.

0:33:120:33:15

But I've got a feeling space is not an issue here.

0:33:150:33:18

As I suspected, the kitchen is massive.

0:33:180:33:21

Wow, I would certainly love to have a kitchen this size in my house.

0:33:210:33:25

It really is a luxury.

0:33:250:33:27

But if you're buying this property as a buy-to-let,

0:33:270:33:30

the way to go would be to have two bedrooms.

0:33:300:33:33

You could easily convert this into a bedroom by putting a wall up here

0:33:330:33:37

and using this space and the cupboard beyond as a kitchen.

0:33:370:33:41

What I love about this property is there's so many different options.

0:33:410:33:45

It's fantastic.

0:33:450:33:47

Traditionally, two-bed flats are more appealing in a rental market,

0:33:500:33:53

but an open-plan kitchen/living area can be equally as attractive.

0:33:530:33:58

Or, of course, leave it as it is.

0:33:580:34:01

I can't see any major problems here,

0:34:010:34:03

it obviously needs to be stripped right back

0:34:030:34:06

and started all over again.

0:34:060:34:08

But with the room dimensions, original features

0:34:080:34:11

and bags of potential,

0:34:110:34:13

you'll certainly be starting off on the right foot.

0:34:130:34:15

And at a guide price of an

0:34:160:34:19

unbelievably brilliant £30,000, we asked a local estate agent along

0:34:190:34:25

to cast his critical eye over this Glasgow tenement flat.

0:34:250:34:29

This flat is very typical of what you would expect

0:34:290:34:32

from a one bedroom with what we call a dining-sized kitchen.

0:34:320:34:35

It gives a lot of options, because of the room sizes

0:34:350:34:37

and conversion into an internal kitchen, providing two bedrooms.

0:34:370:34:41

The area is more susceptible to people needing a two-bedroom flat,

0:34:410:34:44

because of the demographics

0:34:440:34:46

and the people that now live in the Govanhill area.

0:34:460:34:48

So having more bedrooms would probably be more attractive,

0:34:480:34:51

especially in the rental market.

0:34:510:34:53

As I thought.

0:34:530:34:54

But if it was left as a one-bedder, what rent could it command?

0:34:540:34:58

If the property was done to a good standard,

0:34:590:35:01

again, with new kitchen and bathroom, the rental value for it

0:35:010:35:04

as it currently stands would be £400 per calendar month.

0:35:040:35:07

And if it was converted into a two-bed?

0:35:070:35:10

If the property was converted into a two-bedroom,

0:35:100:35:12

the rental valuation would be £500 per calendar month.

0:35:120:35:15

What about its sale value as a one-bed?

0:35:150:35:18

If the property was done up to a good standard with new kitchen,

0:35:180:35:21

new bathroom and internal decoration,

0:35:210:35:23

I would expect it to achieve between £65,000 and £70,000.

0:35:230:35:26

And a two-bed?

0:35:260:35:27

If the property was converted into a two-bedroom property,

0:35:270:35:30

taking away the internal walls, making an internal kitchen,

0:35:300:35:33

the property would achieve between £70,000 and £75,000.

0:35:330:35:37

This flat just screams potential.

0:35:390:35:41

Yes, it needs lots of work and with lots of vision,

0:35:410:35:44

I think this property could be turned back into something special.

0:35:440:35:47

Let's see who thought the same when it went to auction.

0:35:470:35:50

£30,000 plus seems a fair place to start.

0:35:550:35:58

At £30,000, can't sell it without a bid.

0:35:580:36:01

£25,000, then, let's get it started.

0:36:010:36:03

25 here. At £25,000 on my left.

0:36:030:36:07

In one, nice and easy.

0:36:070:36:09

At 25, bid now.

0:36:090:36:11

26, 27, madam.

0:36:110:36:14

27, I've got, 28.

0:36:140:36:15

29.

0:36:150:36:17

30, shake of the head. With you at £29,000.

0:36:170:36:20

At £29,000, first time.

0:36:200:36:24

At £29,000 second time.

0:36:240:36:27

I'll take it, 29 and a half, 30.

0:36:270:36:29

30, I've got. And a half.

0:36:290:36:31

Shake of the head. With you at 30, madam.

0:36:320:36:34

Here to sell, it's in the room.

0:36:340:36:36

At £30,000, first time.

0:36:360:36:39

Second time.

0:36:390:36:40

Third and final time at £30,000, all done, all out.

0:36:400:36:44

Selling away. Well done, madam.

0:36:440:36:46

Hidden from view was the successful bidder, Lorraine,

0:36:480:36:51

who for bang on the guide price of £30,000,

0:36:510:36:54

bought this with her husband, David.

0:36:540:36:57

This is their first renovation job.

0:36:570:36:59

MUSIC: "Get Lucky" by Daft Punk

0:36:590:37:01

The couple currently live in London,

0:37:030:37:05

where Lorraine used to work in advertising,

0:37:050:37:07

but now works alongside David in his manufacturing company.

0:37:070:37:11

Lorraine has plenty of family living here in Glasgow

0:37:110:37:14

and felt this was the ideal place to get started.

0:37:140:37:17

While David had to rush off to another appointment,

0:37:180:37:21

Lorraine filled me in with their plans.

0:37:210:37:23

-Lorraine, congratulations.

-Thank you.

0:37:260:37:28

Here you are, you've got the flat you wanted.

0:37:280:37:30

-What was it like for you on auction day?

-Terrifying.

0:37:300:37:32

It was my first time actually bidding properly like a grown-up

0:37:330:37:37

at an auction.

0:37:370:37:38

I was by myself and I was absolutely petrified.

0:37:380:37:41

Did you think you'd win the property on the day?

0:37:410:37:43

No, I didn't, and I was...

0:37:430:37:45

I watch the programme and that's the only reason we started doing this.

0:37:450:37:49

Here we are running our own business and suddenly I just got so obsessed

0:37:490:37:53

watching the programme and thinking, "I could do that, I could do that!"

0:37:530:37:57

So I came into some money, sold a property in London

0:37:570:37:59

and I'll give it a bash.

0:37:590:38:02

Are you surprised with what you've paid?

0:38:020:38:04

Not so much for the area,

0:38:040:38:06

but, generally, with my understanding of property prices,

0:38:060:38:10

it's incredible. Yes, it needs a lot of work doing to it,

0:38:100:38:14

-but it's still a good buy.

-Are you a property developer now?

0:38:140:38:18

-Is this what you've always wanted to do?

-I think so. That's the dream.

0:38:180:38:22

I just love the concept of making something look fantastic,

0:38:220:38:28

so you buy it like this and then in six months' time

0:38:280:38:30

it looks amazing and, hopefully, you make some money on the way.

0:38:300:38:33

Yes, the show is my absolute inspiration. It really was.

0:38:330:38:37

I just hope I live up to the expectations.

0:38:370:38:39

It's always great to meet a fan of the show,

0:38:410:38:43

especially when we've managed to inspire them.

0:38:430:38:46

So what has Lorraine learned from us? What are her plans?

0:38:460:38:49

OK, well, initial thought was,

0:38:510:38:52

"This is huge - let's make it a two-bedroom."

0:38:520:38:56

Then we decided not to for the simple reason

0:38:560:38:58

that it would involve planning permission.

0:38:580:39:01

That could take time.

0:39:010:39:02

My plan for his property is to renovate it and sell it straight on.

0:39:020:39:08

So what sort of budget have you got to spend here?

0:39:080:39:11

-I budgeted 15,000, which I thought was quite healthy.

-Yes!

0:39:110:39:17

I just didn't want any shocks or surprises

0:39:170:39:19

and I had several builders recommended to me,

0:39:190:39:23

so I got them all in at different times

0:39:230:39:26

and they all put in the cost to me

0:39:260:39:28

and it's come in a lot less than I'd planned,

0:39:280:39:31

-so I'm even happier at the moment.

-So what's it come in at? Do tell!

0:39:310:39:35

-At the moment, we're at about 11.

-Fantastic!

0:39:350:39:37

That's a new kitchen, new bathroom...

0:39:370:39:38

New kitchen, new bathroom, new flooring in the bathroom,

0:39:380:39:41

cos there's a lovely hole in floor there.

0:39:410:39:44

Carpets throughout, linoleum in the kitchen and in the bathroom.

0:39:440:39:47

What about things like your beautiful cornicing there?

0:39:470:39:50

-Are you going to try and restore that?

-It's all being restored.

0:39:500:39:53

-Fab!

-Yeah, the guy who's doing it,

0:39:530:39:54

he's basically stripping all the walls, relining them,

0:39:540:39:58

making good where they need to be,

0:39:580:40:00

and then redoing all the cornicing and the ceiling rose,

0:40:000:40:02

just to get them back to how they would have looked

0:40:020:40:04

when they were originally put in.

0:40:040:40:07

Lorraine has obviously done her homework.

0:40:070:40:09

She has a really healthy budget and a nice, simple renovation plan,

0:40:090:40:13

plus she has given herself a four-month timescale.

0:40:130:40:16

Although this is her first project, Lorraine seems to be cruising.

0:40:170:40:22

So, Lorraine, what are you worried about with this purchase?

0:40:230:40:26

I guess, like with anything, it's the budget.

0:40:260:40:28

Having watched the show and listening to people saying,

0:40:280:40:31

"Yeah, the budget was this and we ended up spending that",

0:40:310:40:36

you learn a lot.

0:40:360:40:37

You learn a lot from the good stuff and also from their mistakes.

0:40:370:40:40

Obviously, knowing the area helps,

0:40:400:40:42

but the research helped as well, just talking to family and friends up here

0:40:420:40:46

before I made that decision, because although it's not a lot of money,

0:40:460:40:49

it's a huge amount of money just to play around with, to think,

0:40:490:40:53

"Oh, I'll just spend that and buy a flat."

0:40:530:40:56

You need to do your homework and I absolutely did.

0:40:560:40:59

The thing that kept going through my head was this legal pack thing,

0:40:590:41:02

and, again, it's what you and Martin talk about all the time.

0:41:020:41:06

-I was a wreck.

-You read the legal pack?

0:41:060:41:08

Read it? I was like Miss Marple!

0:41:080:41:11

OK, give me five, I love that. That's what we like.

0:41:110:41:13

# Hallelujah

0:41:130:41:16

# Hallelujah... #

0:41:160:41:21

Yes, it's finally happened after ten years on this programme -

0:41:210:41:25

somebody's finally read the legal pack.

0:41:250:41:27

Seriously, though,

0:41:270:41:28

Lorraine's attention to detail could mean

0:41:280:41:31

there won't be any nasty hidden bills lurking around the corner

0:41:310:41:34

for her and her husband.

0:41:340:41:36

Look, I'm so excited to see the flat when it's finished.

0:41:360:41:39

It's been lovely to meet you and I absolutely love this property.

0:41:390:41:42

-Thank you so much.

-It's got a great feel about it. Congratulations.

0:41:420:41:45

Thanks very much, Lucy.

0:41:450:41:46

Lorraine and her husband, David, are venturing into property developing

0:41:460:41:50

for the first time using the funds from the sale of her London flat.

0:41:500:41:55

Lorraine hopes this will realise her lifelong dream

0:41:550:41:58

of becoming a developer,

0:41:580:42:00

but will it be all it's cracked up to be?

0:42:000:42:03

You can find out how they both get on later in the programme.

0:42:030:42:06

Well, we wait patiently for our purchasers

0:42:090:42:11

to do work on their properties

0:42:110:42:13

and sometimes they make an absolutely wonderful job of it.

0:42:130:42:16

And sometimes, for various reasons, they don't do anything at all.

0:42:160:42:20

Let's find out what happened in this instance.

0:42:200:42:23

We return now to Codnor near Ripley in the county of Derbyshire.

0:42:260:42:30

Earlier, I met father and daughter team Bob and Harriet,

0:42:320:42:35

who, for £92,000,

0:42:350:42:38

bought this three-bed detached house which had too many entrances

0:42:380:42:44

and a strange conservatory-cum-kitchen

0:42:440:42:47

complete with sliding doors.

0:42:470:42:49

It's their second renovation property together,

0:42:510:42:53

the only difference being that this time Bob is the sole investor

0:42:530:42:57

and Harriet is on the payroll.

0:42:570:42:59

They were undecided as to whether

0:43:010:43:03

they would rent or sell the property,

0:43:030:43:05

but had given themselves a relatively tight budget

0:43:050:43:08

of just £6,000.

0:43:080:43:10

-And you've got slave labour here.

-Slave labour.

0:43:120:43:15

No, I'll have to pay her this time.

0:43:150:43:16

-Oh, are you?

-Yeah.

0:43:160:43:18

She doesn't have shares in the property this time,

0:43:180:43:20

so she's going to be hired help.

0:43:200:43:21

Have you negotiated a rate yet?

0:43:210:43:24

Not yet, no.

0:43:240:43:25

Is now the time to talk about it, maybe,

0:43:250:43:27

and I can be the independent arbitrator?

0:43:270:43:28

I think it'll be a zero-hours contract.

0:43:280:43:31

Really?! They are very, very...

0:43:310:43:34

Yes, they're a bit contentious at the moment.

0:43:340:43:36

We're not going to have too many of them, no.

0:43:360:43:39

We returned six months later

0:43:400:43:41

to see how their second project together has gone.

0:43:410:43:45

By replacing the dated archway with French doors,

0:44:030:44:07

two living spaces have been created.

0:44:070:44:09

The second opens into a modernised kitchen

0:44:100:44:13

and it feels less conservatory-like

0:44:130:44:15

as they've bricked up some of the windows,

0:44:150:44:18

making it feel a bit more permanent.

0:44:180:44:20

They've raised the floor by three inches and, look,

0:44:220:44:25

no sliding door either.

0:44:250:44:27

They've also reconfigured the side porch

0:44:290:44:32

and old kitchen by pushing the door back in order to create

0:44:320:44:35

a useful downstairs cloakroom under the stairs

0:44:350:44:38

and knocking through into the old kitchen,

0:44:380:44:41

creating a modern office space.

0:44:410:44:43

The transformation continues upstairs, with new carpets

0:44:490:44:53

and fresh paint turning these three bedrooms

0:44:530:44:55

from dated and dowdy to chic and modern.

0:44:550:45:00

Plus, a slick new bathroom suite has been added.

0:45:010:45:05

But in my opinion,

0:45:080:45:10

it's the change to the kitchen conservatory that really impresses.

0:45:100:45:13

We didn't think most people would appreciate having to go through

0:45:150:45:18

the patio door to make a cup of tea and then back again,

0:45:180:45:21

to get the sugar and then back again to get the biscuits,

0:45:210:45:25

and stepping down three inches

0:45:250:45:26

and it was a bit like a conservatory-cum-kitchen.

0:45:260:45:30

It didn't really work for us.

0:45:300:45:32

We've embraced the kitchen into the house now.

0:45:330:45:35

The bad garden is tidier and more appealing,

0:45:370:45:40

complementing the extensive work done inside.

0:45:400:45:43

Something tells me they've gone beyond that £6,000 budget,

0:45:440:45:48

so what made them decide to make such big changes?

0:45:480:45:51

The main issue with this house

0:45:530:45:56

was whether to convert it for rental or resale.

0:45:560:46:00

The valuations we had from the agents

0:46:000:46:03

when they came round were quite conclusive, really.

0:46:030:46:07

It seemed obvious that we should renovate it for resale

0:46:070:46:12

and so that meant doing a lot more alterations

0:46:120:46:15

than we thought we should do in the first place.

0:46:150:46:18

We said we were going to keep the fireplace and the arch

0:46:180:46:21

and they've all gone and we've spent about £9,000 altogether.

0:46:210:46:27

Considering the work done here,

0:46:270:46:29

I don't think an overspend of £3,000 is too bad,

0:46:290:46:33

but then Bob did have handy Harriet.

0:46:330:46:35

I stripped all the wallpaper from downstairs and upstairs

0:46:380:46:43

and then painted it in magnolia

0:46:430:46:48

and the ceilings as well.

0:46:480:46:51

And did gloss painting on the doors as well.

0:46:510:46:54

-You've acquired some techniques, haven't you?

-Yes.

0:46:540:46:57

With both Harriet and Bob having full-time jobs,

0:46:590:47:02

how did they manage their time?

0:47:020:47:04

On my chiropody, I've cut down to about three days a week,

0:47:060:47:09

which has left four days to work here and it has been seven days a week

0:47:090:47:15

for the past six months, so I'm feeling it a little bit now.

0:47:150:47:19

I've had a couple of days off a week as well,

0:47:190:47:21

so I've come down on most of my days off to come and help where I can.

0:47:210:47:25

We've taken almost six months because we've done more than we thought

0:47:250:47:29

and, to be honest, it's seemed a lot longer than that.

0:47:290:47:32

There were various jobs that needed doing that we hadn't perhaps foreseen

0:47:320:47:36

and changes to the plan that we'd made,

0:47:360:47:39

so altogether, six months isn't too bad, I think.

0:47:390:47:41

In total, Bob has spent £101,000 on this property,

0:47:430:47:47

which is pretty good, considering the last-minute change of plan.

0:47:470:47:51

So have six months and £101,000 been spent well?

0:47:510:47:57

We asked two local estate agents along to take a look.

0:47:570:48:01

It's clean, tidy, all neutral decor, new carpets.

0:48:010:48:06

-It looks ready to move in to.

-The layout is great for a modern family.

0:48:060:48:10

It's got an open-plan dining kitchen,

0:48:100:48:12

double doors through into the living area, downstairs cloakroom

0:48:120:48:17

and two double-sized bedrooms to the first floor.

0:48:170:48:20

Rental value,

0:48:200:48:22

I would expect to achieve up to £525 per calendar month.

0:48:220:48:26

If the property was to be let out,

0:48:260:48:28

I would suggest £495 per calendar month and it would let very quickly.

0:48:280:48:33

They're way out.

0:48:330:48:35

Way out.

0:48:350:48:36

If you look on the internet sites, at least 600 in this area.

0:48:360:48:40

You can't get a three-bed detached for less than 600, renting out.

0:48:400:48:44

So Bob is unimpressed by that evaluation,

0:48:440:48:47

but it would still give a healthy yield of 6%.

0:48:470:48:50

Hopefully, the resale evaluation will be more to his liking.

0:48:500:48:54

I would suggest a realistic price

0:48:540:48:56

to ask for this property now would be £130,000.

0:48:560:48:59

I would suggest a sale value of approximately £130,000.

0:48:590:49:04

-They're round about in the ball park, aren't they?

-What we expected.

0:49:040:49:08

Round about 130-odd. Yep, that's fine.

0:49:080:49:10

Although those evaluations would give Bob a profit of £29,000,

0:49:120:49:16

minus the usual fees and taxes,

0:49:160:49:18

he has taken further advice since we visited

0:49:180:49:21

and has put the house on the market at 155,000.

0:49:210:49:25

All in all, this renovation is a real success,

0:49:270:49:30

so are they up for property number three?

0:49:300:49:33

Yes, we'll do it again, I think.

0:49:330:49:35

It's just a question of finding the right property

0:49:350:49:37

and selling this one on first.

0:49:370:49:38

-Yep?

-Yep.

0:49:380:49:40

Back up now to Govanhill in Glasgow,

0:49:510:49:54

where earlier we met Lorraine and David

0:49:540:49:57

who for bang on the bargain guide price of £30,000

0:49:570:50:01

had bought this classic one-bed Glasgow tenement flat.

0:50:010:50:05

This was their first venture into property renovation

0:50:060:50:09

and they had a simple "renovate and sell on" plan

0:50:090:50:12

with Lorraine being the project manager.

0:50:120:50:15

Lorraine, what are you worried about with this purchase?

0:50:170:50:19

I guess, like with anything, it's the budget.

0:50:190:50:22

Having watched the show and listening to people saying,

0:50:220:50:25

"Yeah, the budget was this and then we ended up spending that",

0:50:250:50:29

you learn a lot.

0:50:290:50:30

You learn a lot from the good stuff and also from their mistakes,

0:50:300:50:33

so you need to do your homework and I absolutely did.

0:50:330:50:37

Lorraine was clearly full of enthusiasm for her first project.

0:50:380:50:43

We've returned four months later to see the results.

0:50:430:50:46

The new kitchen is modern and practical.

0:50:560:51:00

By moving the sink and creating a window seat in its place,

0:51:010:51:05

Lorraine has created a clean and spacious feel here.

0:51:050:51:09

The living room has been stripped right back

0:51:130:51:16

and repainted with original features restored, just as Lorraine promised.

0:51:160:51:21

A fresh carpet leads out into the bright, clean hallway,

0:51:240:51:28

where the superior finish continues.

0:51:280:51:30

The bedroom that once felt cramped and dingy

0:51:330:51:35

has now been opened up and cleaned up.

0:51:350:51:38

Across the hallway, the tired old bathroom with a hole in the floor

0:51:420:51:46

and a smell of damp is now, well, see for yourself.

0:51:460:51:49

By replacing the damaged floorboards

0:51:590:52:01

and laying attractive floor tiles found at a reclamation yard,

0:52:010:52:04

as well as painting and re-plastering,

0:52:040:52:06

Lorraine and David have achieved a good finish here.

0:52:060:52:09

They decided against turning it into a two-bed and to be honest,

0:52:140:52:17

the cost of doing that may have eaten into

0:52:170:52:19

any profit they were likely to make.

0:52:190:52:21

I am really impressed by what's been done to this property,

0:52:250:52:28

and particularly so by the re-jigging in the kitchen.

0:52:280:52:31

Traditionally in tenements, the sink would be here

0:52:330:52:36

and it would block part of the window off

0:52:360:52:38

and it just seemed a shame to lose that feature,

0:52:380:52:41

so my very clever husband, David,

0:52:410:52:43

suggested that we put in a window seat

0:52:430:52:46

and my builder, Steven, actually built it, designed this

0:52:460:52:50

and put it in, and I decorated it with scatter cushions.

0:52:500:52:54

Not only have Lorraine and David transformed their flat,

0:52:560:52:59

but by talking to the factor,

0:52:590:53:01

the Scottish term for communal maintenance company,

0:53:010:53:04

they got the stairs and the close painted and improved.

0:53:040:53:07

And they've enhanced the kerb appeal by tidying up

0:53:100:53:12

the area in front of the flats.

0:53:120:53:14

The communal areas at the back are the council's responsibility

0:53:140:53:18

and are due for renovation in the near future.

0:53:180:53:21

I cannot fault their attention to detail,

0:53:230:53:26

so break it down for me, Lorraine.

0:53:260:53:28

Let's start from the beginning.

0:53:280:53:30

We had to rip out the kitchen, lift up some of the floorboards,

0:53:320:53:35

re-skin the walls and in the bathroom, pretty much the same.

0:53:350:53:41

There was a damp patch on the ceiling which needed to be sealed

0:53:410:53:45

and made good, which we had done,

0:53:450:53:47

and then put down some lovely slate tiles

0:53:470:53:49

which I bought from a reclamation yard,

0:53:490:53:51

which I got a really good deal on, which I was very happy about!

0:53:510:53:55

I think those are my two favourite rooms,

0:53:550:53:57

because they've got the biggest transformation.

0:53:570:53:59

They look really nice. I wouldn't mind living there.

0:53:590:54:03

All the doors in the flat were all the original Victorian doors,

0:54:030:54:06

but they'd been hidden with plasterboard

0:54:060:54:09

and all kinds of stuff, so we had those ripped off

0:54:090:54:11

and then the doors were taken away and dipped and stripped

0:54:110:54:15

back to their original, as they would have been in the early 1900s.

0:54:150:54:19

I love the character.

0:54:190:54:20

It's a one-bedroom flat but it's just got oodles of character

0:54:200:54:24

with the ceiling roses and the cornicing and the original doors.

0:54:240:54:27

MUSIC: "Happy" by Pharrell Williams

0:54:270:54:30

Lorraine has project managed from her home in London,

0:54:350:54:38

visiting frequently over the four-month renovation period.

0:54:380:54:41

So how has she found her first project?

0:54:410:54:44

I think project managing generally,

0:54:450:54:48

I come from the background of advertising,

0:54:480:54:50

I worked in ad agencies most of my career, so that was my job,

0:54:500:54:54

so I'm used to juggling lots of balls in the air.

0:54:540:54:57

You just make it work. It's like any job. You just have to make it work.

0:54:570:55:01

Lorraine's attention to detail and her research

0:55:010:55:04

meant that she'd brought this project in at £14,000,

0:55:040:55:07

1,000 under her original budget.

0:55:070:55:10

Now, I loved this flat before,

0:55:120:55:14

but I think Lorraine has added value in all the right places.

0:55:140:55:17

How does she feel, now that it's all over?

0:55:170:55:20

It feels like a home, which it didn't when I bought it at auction.

0:55:220:55:26

It was a bomb site and walking into the kitchen and the bathroom,

0:55:260:55:30

it just feels really cosy and I think,

0:55:300:55:32

although you can't take it too personally,

0:55:320:55:35

I'm not buying this and doing this for me to live in,

0:55:350:55:38

I think you can still have a sense of pride about what you're doing

0:55:380:55:41

and still have that, "Gosh, I wouldn't mind living here

0:55:410:55:44

"if I was not married, ten years younger and based in Scotland",

0:55:440:55:48

but I'm really pleased.

0:55:480:55:49

For me, that's been the highlights of this whole project,

0:55:490:55:52

just walking in and seeing, "Wow."

0:55:520:55:54

After a total spend of £44,000,

0:55:570:56:01

I am so eager to see if Lorraine's homework's paid off.

0:56:010:56:05

We've invited two local property experts to take a look.

0:56:050:56:08

A huge difference. They've done a great job.

0:56:110:56:13

Obviously, new kitchen and bathroom,

0:56:130:56:15

all done to a very, very high standard

0:56:150:56:16

with new carpets throughout the property.

0:56:160:56:18

There's a feeling of space and light,

0:56:180:56:20

so that's good and it will attract first-time buyers

0:56:200:56:24

and landlords as well.

0:56:240:56:26

This property should achieve around £450 per calendar month.

0:56:260:56:30

I think it would achieve a rental value of £400 per calendar month.

0:56:300:56:36

Well, that's pretty good.

0:56:360:56:37

I hadn't looked at renting,

0:56:370:56:39

but it's good to know, in case it doesn't sell.

0:56:390:56:42

Taking the higher valuation of £450,

0:56:430:56:46

that would bring a massive yield of around 12%.

0:56:460:56:50

Will the sought-after sale price be as impressive?

0:56:520:56:56

I would value this property at £65,000.

0:56:560:56:59

A property like this should achieve around £70,000 in the current market.

0:56:590:57:04

Little on the low side.

0:57:040:57:06

A couple of agents came round last week and they were at the 70-mark,

0:57:060:57:11

probably the home report would be 73, 75, but we'd look to get around 70.

0:57:110:57:16

Fingers crossed, it'll be more my side than theirs.

0:57:180:57:21

Lorraine may not be all that impressed

0:57:220:57:24

with the low evaluation of 65,000,

0:57:240:57:27

but that would still give her a possible profit of £21,000 -

0:57:270:57:31

not to be sniffed at on your first property project.

0:57:310:57:35

I'm really pleased with how it's turned out.

0:57:350:57:37

The flat looks great and there was no major headaches,

0:57:370:57:40

so if they were all like this, this would be my full-time career,

0:57:400:57:44

but for now, back to London.

0:57:440:57:48

Join us next time when we'll have more riveting stories

0:57:510:57:53

from Britain's auction rooms.

0:57:530:57:55

Yes, you wouldn't want to miss it -

0:57:550:57:56

it could be your passport to a small fortune.

0:57:560:57:59

-See you then!

-Goodbye.

-Goodbye.

0:57:590:58:01

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