0:00:02 > 0:00:04Hello. Now, there are literally hundreds of property auctions
0:00:04 > 0:00:07held all over the UK.
0:00:07 > 0:00:09Yes, it is a thriving business
0:00:09 > 0:00:11with billions of pounds worth of property
0:00:11 > 0:00:12being sold every year.
0:00:12 > 0:00:15And if you want to find out how to buy your next home
0:00:15 > 0:00:18under the hammer, you've come to the right place.
0:00:44 > 0:00:47Now, we're always telling you that you need to do your research
0:00:47 > 0:00:49before you buy at auction but, what do we mean?
0:00:49 > 0:00:51Go and see the property if you can
0:00:51 > 0:00:53and find out all about it.
0:00:53 > 0:00:56Yes. The more you know, the better prepared you are.
0:00:56 > 0:01:00So, here are the properties that tempt the buyers on today's show.
0:01:01 > 0:01:03This three-bedroom semi in Derbyshire
0:01:03 > 0:01:05needs a little more space.
0:01:05 > 0:01:08Straight through the front door and you've got this
0:01:08 > 0:01:10very narrow staircase.
0:01:11 > 0:01:13But in Streatham, south London,
0:01:13 > 0:01:16a little balcony space goes a long way.
0:01:16 > 0:01:19It might be small but any outside space is a bonus
0:01:19 > 0:01:20in London.
0:01:22 > 0:01:26And in Shildon, County Durham, I've run out for space altogether.
0:01:27 > 0:01:29- Oops. - BANGS DOOR
0:01:29 > 0:01:31Bit of a design flaw that, isn't it?
0:01:33 > 0:01:35All these properties have been sold at auction.
0:01:35 > 0:01:38We'll find out who bought them and what they paid for them
0:01:38 > 0:01:40when they went under the hammer.
0:01:43 > 0:01:46I'm in Ashbourne, Derbyshire,
0:01:46 > 0:01:48known as the Pride Of The Peak.
0:01:48 > 0:01:51Today, tourism is the main industry
0:01:51 > 0:01:52but, back in the day,
0:01:52 > 0:01:55most money was earned by doing things to milk.
0:01:55 > 0:01:58Milk trains used to bring their cargo here
0:01:58 > 0:02:00to be turned into condensed milk
0:02:00 > 0:02:03but when that industry turned sour - ho-ho -
0:02:03 > 0:02:04the factory was demolished
0:02:04 > 0:02:07and Ashbourne is now known for its bottled water.
0:02:08 > 0:02:13# But now the milk train doesn't come by here any more
0:02:13 > 0:02:15# La-la, la-la-la-la... #
0:02:15 > 0:02:18Well, just a half a mile outside Ashbourne
0:02:18 > 0:02:23on this very busy main road is the property I'm here to see.
0:02:23 > 0:02:26£110,000+ was the guide price for this,
0:02:26 > 0:02:29a three-bedroomed, semidetached cottage-style house.
0:02:29 > 0:02:32Nice, open views at the back. Let's take a look.
0:02:33 > 0:02:35First, outside, and the obvious snag
0:02:35 > 0:02:39is that they don't allow parking on the trunk road.
0:02:39 > 0:02:41There is, however, a nice lawned area
0:02:41 > 0:02:43that, subject to planning,
0:02:43 > 0:02:46could fit a drive, parking and turning area.
0:02:48 > 0:02:50But it is a rather nice garden, complete with shed,
0:02:50 > 0:02:53so it would be a bit of a shame to lose it.
0:02:57 > 0:02:59Oh, wow. That is weird.
0:02:59 > 0:03:01Straight in through the front door and you've got this
0:03:01 > 0:03:04very narrow staircase.
0:03:04 > 0:03:08The good news is there's a downstairs loo and wash basin.
0:03:08 > 0:03:09The bad news is
0:03:09 > 0:03:12that they go alongside the only bath in the house.
0:03:12 > 0:03:14There is a reasonable lounge
0:03:14 > 0:03:18but a peculiar double pantry kind of arrangement.
0:03:18 > 0:03:22The key to understanding this strange layout lies outside.
0:03:23 > 0:03:25Being sideways on the road,
0:03:25 > 0:03:28this pair of semis might be better described
0:03:28 > 0:03:30as a pair of back-to-backs.
0:03:30 > 0:03:34How they join up causes limitations inside,
0:03:34 > 0:03:37and nowhere is this more evident than in the kitchen.
0:03:37 > 0:03:39It's not a bad-sized space
0:03:39 > 0:03:43but you'd think, well, let's expand it and take out this wall!
0:03:43 > 0:03:46Unfortunately, on the other side of that wall
0:03:46 > 0:03:48is the neighbour's house, so you can't do that.
0:03:48 > 0:03:50Ahh!
0:03:50 > 0:03:53Have I come across some more unusual layout
0:03:53 > 0:03:55walking through the door of a property before?
0:03:56 > 0:03:58I don't think so.
0:04:00 > 0:04:02These stairs really are quite steep
0:04:02 > 0:04:04and they lead to this sort of odd landing area
0:04:04 > 0:04:07where it's another step up into the bedrooms,
0:04:07 > 0:04:09and that's not really ideal, is it?
0:04:09 > 0:04:11You know, coming out at night, a bit bleary-eyed - wallop!
0:04:11 > 0:04:16The bedrooms are actually, surprisingly, a good size.
0:04:16 > 0:04:19One at the front of the property there, lots of damp
0:04:19 > 0:04:22and also you've got the boiler in there which really isn't ideal.
0:04:22 > 0:04:24Boilers, bedrooms - bad combination.
0:04:24 > 0:04:25Large bedroom there.
0:04:25 > 0:04:28It's nice to see you've got the original fireplace, which is good.
0:04:28 > 0:04:31And then, through to the rear bedroom.
0:04:31 > 0:04:33This too, not a bad size.
0:04:33 > 0:04:36Good to see an open fire in here as well.
0:04:36 > 0:04:37But how about this?
0:04:37 > 0:04:40- HE TALKS LOUDLY:- I now present to you, ladies and gentlemen,
0:04:40 > 0:04:43the great Martino and the amazing
0:04:43 > 0:04:45disappearing arm trick.
0:04:45 > 0:04:48Be amazed. Be very amazed.
0:04:49 > 0:04:52- HE BLOWS - No smoke, no mirrors.
0:04:53 > 0:04:55Woooo.
0:04:56 > 0:04:59Woooo.
0:05:01 > 0:05:02That's weird, isn't it?
0:05:02 > 0:05:04HE LAUGHS
0:05:04 > 0:05:08Joking aside, this property has one of the worst damp issues I've seen.
0:05:10 > 0:05:13And one thing I personally feel that hasn't helped matters
0:05:13 > 0:05:16is the polystyrene insulation behind the wallpaper.
0:05:17 > 0:05:21For me, I much prefer a matt finish plastered wall
0:05:21 > 0:05:24that's free to breathe and absorb a bit of moisture.
0:05:25 > 0:05:27We asked the auctioneer who sold it to take a look
0:05:27 > 0:05:29and, in particular,
0:05:29 > 0:05:32to tap him up about the downstairs bathroom.
0:05:34 > 0:05:36It clearly needs refitting if you leave it where it is,
0:05:36 > 0:05:41but does that mean I actually take it upstairs and sacrifice a bedroom?
0:05:41 > 0:05:43It's always a thorny issue
0:05:43 > 0:05:45because you come down to two bedrooms
0:05:45 > 0:05:48whereas you leave it as three bedrooms, it's got a higher value.
0:05:48 > 0:05:52But a ground-floor bathroom is not exactly user-friendly.
0:05:52 > 0:05:54Oh!
0:05:54 > 0:05:58Well, I've got this one down to being positively user-hostile.
0:05:58 > 0:06:01Mind you, the suite does match the woodwork
0:06:01 > 0:06:04and the guide price is only 110,000.
0:06:05 > 0:06:08Was dusk pink ever in fashion?
0:06:08 > 0:06:10If we refurbish what's here,
0:06:10 > 0:06:12maybe with one or two alterations and additions...
0:06:12 > 0:06:16I've got in mind a conservatory porch at the back
0:06:16 > 0:06:20which might also double up as a utility area,
0:06:20 > 0:06:23change the two pantry arrangements around and make them more usable.
0:06:23 > 0:06:28..it would have a value of probably around £175,000.
0:06:29 > 0:06:31Um, and that would have a rental value
0:06:31 > 0:06:33of about £600 a calendar month.
0:06:34 > 0:06:37Well, you're definitely going to have to spend a bit of time
0:06:37 > 0:06:38sorting out the layout inside.
0:06:38 > 0:06:40What you can't change quite so easily though
0:06:40 > 0:06:43is the location by this main road.
0:06:43 > 0:06:45Still, a good house for the money.
0:06:45 > 0:06:47Let's see who bought it when it went under the hammer.
0:06:47 > 0:06:49110+ is the guide price.
0:06:49 > 0:06:51Don't mind where we start.
0:06:51 > 0:06:53£100,000 I have. Thank you.
0:06:53 > 0:06:54The lot came up
0:06:54 > 0:06:55towards the end of the day,
0:06:55 > 0:06:58and bidding was a bit sluggish to start with.
0:06:58 > 0:07:01We rejoin at 117,000.
0:07:01 > 0:07:05£117,000. 118,000 quickly.
0:07:05 > 0:07:08117,000. 118,000.
0:07:08 > 0:07:10119,000.
0:07:10 > 0:07:11120,000.
0:07:11 > 0:07:14- 126,000. - These two bidders fought it out
0:07:14 > 0:07:17in £1,000 steps till reaching 128,000.
0:07:18 > 0:07:20128,000.
0:07:20 > 0:07:22129,000. 129,000.
0:07:22 > 0:07:24And a half.
0:07:24 > 0:07:26130.
0:07:27 > 0:07:28And a half.
0:07:29 > 0:07:32130,500.
0:07:32 > 0:07:34131,000.
0:07:34 > 0:07:36Sure?
0:07:36 > 0:07:38£131,000.
0:07:38 > 0:07:40Once.
0:07:40 > 0:07:42Twice. Third time.
0:07:42 > 0:07:45- GAVEL BANGS - Sold at 131,000. Thank you.
0:07:45 > 0:07:46Number 61.
0:07:46 > 0:07:52And that successful bid of £131,000 came from Malcolm and Brenda.
0:07:52 > 0:07:53They're local to the area
0:07:53 > 0:07:57and would have gone up another £4,000 if needed.
0:07:57 > 0:07:59Malcolm, Brenda, great to meet you both.
0:07:59 > 0:08:01- Yes. Hello, Martin.- Congratulations.
0:08:01 > 0:08:04So, tell me why you wanted to buy this house?
0:08:04 > 0:08:07Well, it stands well. It looks well from the road,
0:08:07 > 0:08:09and apparently it had a new roof on in the mid '80s
0:08:09 > 0:08:12and it's PVC double glazing all around
0:08:12 > 0:08:14but a couple of windows probably...
0:08:14 > 0:08:17- Right.- ..and doors, which is a big saving.
0:08:17 > 0:08:21- Um, but a lot of issues as you can imagine, it has.- Yeah.
0:08:21 > 0:08:23A lot of damp issues and things.
0:08:23 > 0:08:25Malcolm's not kidding.
0:08:25 > 0:08:27However, he's a man of many talents
0:08:27 > 0:08:29having been in dairy and crop farming
0:08:29 > 0:08:31since he was a young boy.
0:08:32 > 0:08:35Since selling the farm, he's driven milk tankers
0:08:35 > 0:08:37whilst Brenda runs her own business
0:08:37 > 0:08:41designing websites and providing virtual office services.
0:08:41 > 0:08:44However, there's no doubt that they've taken on a challenge.
0:08:45 > 0:08:47What are you going to do to sort it out?
0:08:49 > 0:08:51THEY LAUGH
0:08:51 > 0:08:54- Um...- Well, I'm glad you're laughing about it anyway. That's good.
0:08:54 > 0:08:57It's a lot of damp issues as you can imagine.
0:08:57 > 0:09:01- This is a wooden floor which, as you notice, it'll slope down.- Hmm.
0:09:01 > 0:09:02So this floor has got to come out.
0:09:03 > 0:09:06All through the door, through there, knock it all down...
0:09:06 > 0:09:09- Right.- ..through there. Right up to the roof.- Right.
0:09:09 > 0:09:11Open the space and then start again.
0:09:11 > 0:09:14- So new staircase and all that kind of stuff?- That's right, yeah.
0:09:14 > 0:09:18- New bathroom, new kitchen. Job lot, really.- Wow.
0:09:18 > 0:09:21I think the challenge really is to move the bathroom upstairs,
0:09:21 > 0:09:23but not to lose the bedroom.
0:09:23 > 0:09:24- Hmm.- That's the...the big challenge.
0:09:24 > 0:09:27It's half an understatement there, Brenda.
0:09:27 > 0:09:30But once they strip out the steep stairs,
0:09:30 > 0:09:33minstrel gallery and the space-wasting double pantry,
0:09:33 > 0:09:36they will have quite a large footprint to play with.
0:09:36 > 0:09:39So, who's doing the work then?
0:09:39 > 0:09:41I've got a friend, a builder.
0:09:41 > 0:09:43He's a really good friend. We go dominoing on Monday night.
0:09:43 > 0:09:46- Do you? - HE LAUGHS
0:09:46 > 0:09:49Right. On the same team or do you play against each other?
0:09:49 > 0:09:51- No, no, we're on the same team. - Right.- Yeah.
0:09:51 > 0:09:55- Are you a good domino player? - I'd like to think so.
0:09:55 > 0:09:57So what's the skill to playing dominoes well?
0:09:57 > 0:10:00A lot of bluff, really, you know.
0:10:00 > 0:10:01That's what it is.
0:10:01 > 0:10:05Pretend you've got dominoes you haven't and all this kind of thing.
0:10:05 > 0:10:07It's a wonderfully sort of bucolic,
0:10:07 > 0:10:10- old-fashioned game but charming, isn't it?- Yes, it is.
0:10:10 > 0:10:12- More of a social night, really.- Yeah.
0:10:12 > 0:10:14Lovely. So, anyway, he plays dominoes with you.
0:10:14 > 0:10:15So he's going to do a good job, is he?
0:10:15 > 0:10:18- Yes, I hope so. He said he would. - Has he given you a budget?
0:10:18 > 0:10:19Or have you given him a budget?
0:10:19 > 0:10:21Yes, he's got a budget.
0:10:21 > 0:10:24We thought 20,000, to be quite honest.
0:10:24 > 0:10:26Right. And how are you going to be involved in things?
0:10:26 > 0:10:29- Are you going to do things like pick the kitchen out?- Yes.
0:10:29 > 0:10:31Yes, I'll help with choosing some of the fixtures and fittings
0:10:31 > 0:10:34and offering a woman's point of view on things.
0:10:34 > 0:10:36- Yeah, brilliant.- Yes, yeah.
0:10:36 > 0:10:38Try and keep things within budget.
0:10:38 > 0:10:40Although I think that's going to be a challenge, really.
0:10:40 > 0:10:42- There's a lot to be done. - There is a lot to do
0:10:42 > 0:10:44once you start ripping things up like floors,
0:10:44 > 0:10:48- you just don't know what you're going to find, do you?- No, no. - That's right.
0:10:48 > 0:10:50And then the idea is to sell it on, is it?
0:10:51 > 0:10:54- Possibly.- Yes.- Or rent. - Rent out probably first
0:10:54 > 0:10:57- and see how that goes, if it goes well.- OK.
0:10:57 > 0:10:58And if we can make a bob or two on it,
0:10:58 > 0:11:01then sell it and have another project.
0:11:01 > 0:11:04Malcolm and Brenda's timescale is six months,
0:11:04 > 0:11:07and they are planning on putting a driveway in
0:11:07 > 0:11:08with enough room to turn around.
0:11:08 > 0:11:10Good idea.
0:11:10 > 0:11:15And Malcolm hasn't even included the driveway in his £20,000 budget,
0:11:15 > 0:11:18so how will he keep these costs to a minimum?
0:11:18 > 0:11:21I've got a friend who does a bit of tarmacing...
0:11:21 > 0:11:25THEY LAUGH ..so I'll have to get round him.
0:11:25 > 0:11:28- Does he play dominoes as well? - No, he doesn't. No, no.
0:11:28 > 0:11:31- Well, congratulations. And good luck with it.- Thank you.
0:11:31 > 0:11:34- We look forward to seeing how you get on.- Thank you.
0:11:36 > 0:11:41So, some fairly radical plans for Malcolm and Brenda.
0:11:41 > 0:11:43But, actually, radical though they may seem,
0:11:43 > 0:11:47I think it'll make a massive difference to this house.
0:11:47 > 0:11:51Will it end up being a double sixer? To use domino terminology!
0:11:51 > 0:11:53You can find out later in the show.
0:11:59 > 0:12:01And talking of radical changes,
0:12:01 > 0:12:05Streatham, in South London, has seen quite a few of those
0:12:05 > 0:12:08with three train stations into central London,
0:12:08 > 0:12:10a new state-of-the-art leisure centre
0:12:10 > 0:12:13and much more investment generally in the area.
0:12:14 > 0:12:16It's property prices are cheaper than its neighbours
0:12:16 > 0:12:18Balham and Clapham.
0:12:18 > 0:12:21More and more people, I'm finding, are moving here.
0:12:21 > 0:12:24And it's not just value for money that attracts people to this area.
0:12:24 > 0:12:29Streatham High Road is reputed to be Europe's longest commercial street.
0:12:29 > 0:12:32And so, there are plenty of shops and restaurants to choose from,
0:12:32 > 0:12:35making it a very convenient place to be.
0:12:35 > 0:12:38Now, apparently, it's only a short walk
0:12:38 > 0:12:39to the property I'm here to see,
0:12:39 > 0:12:44so I'm going to time it and find out just how close it is.
0:12:44 > 0:12:46Ready. Go! I'm off.
0:12:46 > 0:12:48Ha-ha! So the clock's ticking.
0:12:48 > 0:12:52How long is this walk going to take, I wonder?
0:12:52 > 0:12:54Well, it has taken me precisely...
0:12:54 > 0:12:57Ooh. ..31.6 seconds.
0:12:57 > 0:12:59This is a great location.
0:12:59 > 0:13:01Now, let's chat about the property itself.
0:13:01 > 0:13:04It's a three-bedroom, purpose-built flat.
0:13:04 > 0:13:08It had a guide price of £200,000.
0:13:08 > 0:13:11Hmm, sounds like this could be good value for money for Streatham.
0:13:11 > 0:13:14I'm going to have a little look around and see what it's like.
0:13:17 > 0:13:20The flat is on the second floor of this 1930s-built block
0:13:20 > 0:13:21with no lifts.
0:13:23 > 0:13:25It takes longer to get up the stairs
0:13:25 > 0:13:29than going from the front of the building to the shops.
0:13:29 > 0:13:31Oof! So there's two flights of stairs to climb
0:13:31 > 0:13:34before you even get inside the flat.
0:13:34 > 0:13:38That won't be for everyone, so something worth thinking about.
0:13:38 > 0:13:40But what a lovely surprise when you get inside.
0:13:40 > 0:13:42High ceilings,
0:13:42 > 0:13:43wooden floor boards,
0:13:43 > 0:13:45the kitchen is really spacious.
0:13:45 > 0:13:48I mean, that is just fantastic.
0:13:48 > 0:13:52You don't usually see such a big room in a flat like this.
0:13:52 > 0:13:53Bathroom - again, lovely size,
0:13:53 > 0:13:56although there's a little bit of damp just above the loo,
0:13:56 > 0:13:58so I'd certainly get that checked out.
0:13:58 > 0:14:00But, look! There's character.
0:14:00 > 0:14:01Lovely doors.
0:14:01 > 0:14:04These are my favourite doors. Absolutely gorgeous.
0:14:04 > 0:14:07Really good size lounge, double glazing.
0:14:07 > 0:14:10There's not a lot to not like in a property like this.
0:14:10 > 0:14:11Fantastic.
0:14:11 > 0:14:14# All right now
0:14:14 > 0:14:18# Baby, it's all right now. #
0:14:20 > 0:14:22And the three bedrooms, they're all right too.
0:14:22 > 0:14:25Certainly, the master bedroom is a good-sized double.
0:14:27 > 0:14:29As is the middle bedroom.
0:14:30 > 0:14:33The third is a bit more of a boxroom,
0:14:33 > 0:14:36but it would make a great study or office.
0:14:38 > 0:14:41Now, this flat even comes with its own balcony.
0:14:41 > 0:14:45It might be small but any outside space is a bonus in London.
0:14:45 > 0:14:48So, all very positive so far.
0:14:48 > 0:14:51But, if all seems too good to be true,
0:14:51 > 0:14:53well, unfortunately, it often is.
0:14:53 > 0:14:56On face value, this flat ticks a lot of boxes
0:14:56 > 0:14:59but there's one box that hasn't been ticked,
0:14:59 > 0:15:00and that is the length of the lease
0:15:00 > 0:15:04which stands at only 64 years.
0:15:05 > 0:15:09Once the length of the lease falls to less than 70 years,
0:15:09 > 0:15:12mortgage providers will be less than willing to lend,
0:15:12 > 0:15:15which could limit the resale market to cash buyers only.
0:15:15 > 0:15:18And the shorter the lease, the more expensive it is to extend.
0:15:18 > 0:15:23And we're not talking hundreds of pounds but usually several thousand.
0:15:23 > 0:15:25Definitely, I think, a slight concern.
0:15:25 > 0:15:28As are those signs of damp and some cracking.
0:15:30 > 0:15:32But this is a good-sized three-bedroom flat
0:15:32 > 0:15:34that was guided at 200,000.
0:15:36 > 0:15:37As London property prices go,
0:15:37 > 0:15:40that appears to be a good price.
0:15:44 > 0:15:47But what does a local agent make of this Streatham flat?
0:15:48 > 0:15:51It's a great flat. It's got some great features.
0:15:51 > 0:15:54The stripped wooden flooring is a particular feature.
0:15:54 > 0:15:55The kitchen is a really good size.
0:15:55 > 0:15:58It does need a bit of updating but, in general,
0:15:58 > 0:15:59it's a brilliant place to live.
0:15:59 > 0:16:02I wouldn't make any layout changes to this property, I think it's fine as it is.
0:16:02 > 0:16:04It would rent perfectly as it is.
0:16:04 > 0:16:05If you were to make any changes,
0:16:05 > 0:16:09you would have to approach the freeholder's permission to do so.
0:16:09 > 0:16:12With no layout changes necessary,
0:16:12 > 0:16:14I think you could turn this flat around
0:16:14 > 0:16:15and get it ready for the rental market
0:16:15 > 0:16:18in a reasonably quick amount of time.
0:16:18 > 0:16:23Once renovated, this flat would rent for around £1,550 per calendar month.
0:16:23 > 0:16:26That could mean a decent yield after some renovation work.
0:16:26 > 0:16:29But what about possible resale values?
0:16:29 > 0:16:31Once renovated with a short lease,
0:16:31 > 0:16:35this flat would achieve about a £345,000-£350,000 mark.
0:16:35 > 0:16:37And, once the lease is extended,
0:16:37 > 0:16:41the flat would achieve somewhere around the £375,000 mark.
0:16:42 > 0:16:45Wow. So, with or without that extended lease
0:16:45 > 0:16:47there's plenty of potential uplift here.
0:16:49 > 0:16:50This flat is a great size
0:16:50 > 0:16:52and I think you'd be hard pushed
0:16:52 > 0:16:54to find something in this fantastic location
0:16:54 > 0:16:58for less than the £200,000 guide price.
0:16:58 > 0:17:00However, it is not without its issues,
0:17:00 > 0:17:03and it's in need of a new "lease" of life.
0:17:03 > 0:17:05- SHE LAUGHS - Let's see who decided
0:17:05 > 0:17:07to take this on when we went to the auction.
0:17:10 > 0:17:13Lot 24. Who'd like kick-off on this?
0:17:13 > 0:17:15I don't know. Start low so you can get a bid in.
0:17:15 > 0:17:17200. Not going to go below 200,000.
0:17:19 > 0:17:20It's very low for Streatham.
0:17:20 > 0:17:22200 with you.
0:17:22 > 0:17:24205.
0:17:24 > 0:17:26205. 210. 210.
0:17:26 > 0:17:29215. 220.
0:17:30 > 0:17:31225.
0:17:31 > 0:17:32230. 230.
0:17:32 > 0:17:34New spot. 235.
0:17:34 > 0:17:35240.
0:17:36 > 0:17:38One bid and that's it.
0:17:38 > 0:17:40235 with you.
0:17:40 > 0:17:41236, elsewhere?
0:17:42 > 0:17:44236.
0:17:44 > 0:17:45237.
0:17:45 > 0:17:47238, elsewhere?
0:17:48 > 0:17:51- 240,000.- So, after a relatively slow start,
0:17:51 > 0:17:54a bidding war had started on the Streatham flat.
0:17:54 > 0:17:55255...
0:17:55 > 0:17:59And we've rejoined with bids at 260,000.
0:17:59 > 0:18:02259, 260, 261.
0:18:02 > 0:18:05262, 263.
0:18:05 > 0:18:07264.
0:18:07 > 0:18:10264. 263, with you.
0:18:10 > 0:18:11264.
0:18:12 > 0:18:15Got 263 sitting down. Anyone else?
0:18:15 > 0:18:17At 263.
0:18:17 > 0:18:19First time. Second time.
0:18:19 > 0:18:22Third and last time if you're all done.
0:18:22 > 0:18:24- GAVEL BANGS - Sold for 263,000. Well bid, madam.
0:18:24 > 0:18:27And so, for £263,000,
0:18:27 > 0:18:29the successful bidder was Katie.
0:18:33 > 0:18:36Katie works in recruitment for a fine art auction house
0:18:36 > 0:18:40and she's bought it as a joint project with her two sisters.
0:18:40 > 0:18:44# Sisters are doin' it for themselves
0:18:46 > 0:18:49# Standin' on their own two feet
0:18:49 > 0:18:52# And ringin' on their own bells... #
0:18:52 > 0:18:55- Katie, congratulations.- Thank you. - This is a great flat.- Thank you.
0:18:55 > 0:18:56- We think so.- How did you find this?
0:18:56 > 0:18:59Um, well, my sisters and I, we were looking for an investment
0:18:59 > 0:19:01relatively close to where I live,
0:19:01 > 0:19:03which is just on the other side of the common...
0:19:03 > 0:19:05just so it can be managed if we rent it out.
0:19:05 > 0:19:08So we looked at a couple of places, set our budgets,
0:19:08 > 0:19:11and this one came up and went lower than we would have paid for it, so...
0:19:11 > 0:19:13Gosh, so you would have paid more money for this?
0:19:13 > 0:19:16- Absolutely, yeah.- So what was your top limit?
0:19:16 > 0:19:19We were saying about 290,000, 300,000 for this one,
0:19:19 > 0:19:23and then we ended up paying 263, so it was a bit of a steal.
0:19:23 > 0:19:25- Do you feel that you've got a bargain?- Absolutely, yes.
0:19:25 > 0:19:28What is it about this flat that you love so much?
0:19:28 > 0:19:31Being a Streatham girl, you obviously know the area very well.
0:19:31 > 0:19:34Yeah. Streatham is absolutely on the up. It's...
0:19:34 > 0:19:37I mean, I've lived here now for about a year and a half,
0:19:37 > 0:19:40and since then you've already seen all of the coffee shops
0:19:40 > 0:19:42and the cupcake shops and that kind of a thing spring up
0:19:42 > 0:19:45which is always a sign of the gentrification,
0:19:45 > 0:19:46as everyone likes to say.
0:19:46 > 0:19:48So we thought it was a good place to invest
0:19:48 > 0:19:51and we wanted somewhere relatively close, nice.
0:19:51 > 0:19:53It's nice, and big and bright.
0:19:53 > 0:19:55So we think it will rent out pretty well
0:19:55 > 0:19:57once we've done a bit of work to the place.
0:19:57 > 0:19:58It needs it.
0:19:58 > 0:20:01But it's not just cosmetic issues that are the challenge here
0:20:01 > 0:20:03for Katie and her sisters.
0:20:03 > 0:20:07There's that small matter of the short, 64-year lease.
0:20:07 > 0:20:09Let's talk about the lease.
0:20:09 > 0:20:13So the lease is currently just under 70 years
0:20:13 > 0:20:14but we have already...
0:20:14 > 0:20:17The previous owners have already put in to have it extended.
0:20:17 > 0:20:20We're just waiting for confirmation of the price
0:20:20 > 0:20:21but it should be around 12,500.
0:20:21 > 0:20:23About the structure of the building,
0:20:23 > 0:20:27I did notice a few little cracks just above the window in the lounge.
0:20:27 > 0:20:29- Yeah.- Anything to worry about? Have you had this surveyed?
0:20:29 > 0:20:31We haven't, no.
0:20:31 > 0:20:34We have had a sort of general survey,
0:20:34 > 0:20:36which didn't show up any major problems,
0:20:36 > 0:20:37apart from a little bit of damp
0:20:37 > 0:20:40that we need to do a bit more investigative work into
0:20:40 > 0:20:43but that's something we really need to have a quick look at.
0:20:43 > 0:20:46But hopefully, it'll just be surface so that we can just...
0:20:46 > 0:20:48So you're not worried about that?
0:20:48 > 0:20:49Um...
0:20:49 > 0:20:51not yet.
0:20:51 > 0:20:54Katie's don't-worry attitude will hopefully pay off
0:20:54 > 0:20:57but, given she and her sisters are first time developers
0:20:57 > 0:20:59with no building expertise,
0:20:59 > 0:21:02the structural survey would have been my recommendation.
0:21:02 > 0:21:06£263,000 is a lot of money to put at risk,
0:21:06 > 0:21:09no matter how small you might think the risk is.
0:21:09 > 0:21:12So what are you going to do to do it up, to change it?
0:21:12 > 0:21:14First of all, it needs a good clean.
0:21:14 > 0:21:16And then we're going to repaint the whole place,
0:21:16 > 0:21:19restore some of the original features, like the fireplace,
0:21:19 > 0:21:22put in a whole new bathroom and we might be able to salvage
0:21:22 > 0:21:24some of the kitchen cos the units look quite new.
0:21:24 > 0:21:27But we were looking at the high end of the market,
0:21:27 > 0:21:29so maybe putting granite work surfaces in
0:21:29 > 0:21:32and sort of making it quite a high-spec flat.
0:21:33 > 0:21:36But the budget will need to be kept under control,
0:21:36 > 0:21:38there's a lease to extend.
0:21:38 > 0:21:42Katie expects they'll spend £25,000 on the flat,
0:21:42 > 0:21:45including the 12,500 grand for sorting the lease.
0:21:46 > 0:21:50Katie's current job is at a high-end art auction house,
0:21:50 > 0:21:52so she's no stranger to bidding.
0:21:53 > 0:21:55Before that, she was an estate agent.
0:21:55 > 0:21:58Could this be the beginning of a new career for her?
0:21:58 > 0:22:00I'll have two weigh up what sort of money you can earn
0:22:00 > 0:22:02from doing this kind of a thing.
0:22:02 > 0:22:04It is a dream of mine, but who knows?
0:22:04 > 0:22:05It can be quite stressful at times.
0:22:05 > 0:22:08Are you prepared for the extra work that you have to put in?
0:22:08 > 0:22:11Um, yeah. I mean, and the reason for buying so close to home
0:22:11 > 0:22:13is that, literally, my sisters and I
0:22:13 > 0:22:17can just pop across the road, spend every Saturday, every Sunday here,
0:22:17 > 0:22:19do whatever we need to do
0:22:19 > 0:22:21and then pop back to mine for a couple of hours' sleep
0:22:21 > 0:22:22and come back again.
0:22:22 > 0:22:24So we're hoping about six weeks.
0:22:24 > 0:22:27Are you going to actually do anything?
0:22:27 > 0:22:29I'll get my hands dirty as much as I can.
0:22:29 > 0:22:30- SHE LAUGHS - Just going to manage it,
0:22:30 > 0:22:32organise it, do a grand job of that?
0:22:32 > 0:22:35Yeah, I think I'm more of a project manager than a doer.
0:22:35 > 0:22:38My sisters are more into their painting
0:22:38 > 0:22:41and they're a bit more creative than me, so...
0:22:41 > 0:22:44- My sister is a visual merchandiser and that's what she loves doing.- Ah!
0:22:44 > 0:22:47So I'm going to leave it to her to choose colours and pillows
0:22:47 > 0:22:49and all the nice stuff.
0:22:49 > 0:22:50Do you and your sisters get on well?
0:22:50 > 0:22:53Likely to be any sisterly quarrels, do you think?
0:22:53 > 0:22:55Um, we do get on well.
0:22:55 > 0:22:57We don't see a huge amount of each other
0:22:57 > 0:22:59cos we all live in different parts of the country
0:22:59 > 0:23:02but I'm hoping that we should be able to get along
0:23:02 > 0:23:05and perhaps it's something that might bring us closer.
0:23:05 > 0:23:07Katie, I'm so excited to see the outcome.
0:23:07 > 0:23:09- Well done. Congratulations. - Thank you. Thanks.
0:23:10 > 0:23:13It's a great start that Katie and her sisters
0:23:13 > 0:23:15have bought in an area that they know well
0:23:15 > 0:23:18but they've never renovated a property before
0:23:18 > 0:23:20and they haven't had the flat surveyed,
0:23:20 > 0:23:24so I hope...uh, that damp doesn't cause any problems for them.
0:23:24 > 0:23:27Join me later on in the programme and you can find out what happens.
0:23:28 > 0:23:31Still to come, a strange layout leaves me stumped.
0:23:31 > 0:23:35Somebody sat down with a piece of paper
0:23:35 > 0:23:37and designed it like this!
0:23:41 > 0:23:44And we catch up with Katie and her sisters
0:23:44 > 0:23:47to see how they got on with that Streatham revamp.
0:23:52 > 0:23:54Back now to the Pride Of The Peak,
0:23:54 > 0:23:55Ashbourne, in Derbyshire,
0:23:55 > 0:23:59where this cottage-style three-bedroom detached house
0:23:59 > 0:24:03was bought by Malcolm and Brenda for £131,000
0:24:03 > 0:24:07with a view to doing it up and renting it out.
0:24:07 > 0:24:10To me, the restoration looked like a big job,
0:24:10 > 0:24:11what with the damp issues...
0:24:12 > 0:24:17..a bathroom crowning the unusual downstairs layout...
0:24:17 > 0:24:19and a hazardous kitchen.
0:24:19 > 0:24:23It did, however, have plenty of pantry space.
0:24:23 > 0:24:25But Malcolm had a plan.
0:24:25 > 0:24:28I've got a friend, a builder.
0:24:28 > 0:24:30He's a really good friend. We go dominoing on Monday night.
0:24:30 > 0:24:32- Do you? - HE LAUGHS
0:24:33 > 0:24:35Right. On the same team or do you play against each other?
0:24:35 > 0:24:38- No, no. We're on the same team. - Right.
0:24:38 > 0:24:39Are you a good domino player?
0:24:39 > 0:24:42- I would like to think so. - So he plays dominoes with you.
0:24:42 > 0:24:44- So he's going to do a good job, is he?- Yes, I hope so.
0:24:44 > 0:24:46- He said he would. - Has he given you a budget?
0:24:46 > 0:24:49- Or have you given him a budget? - Yes, he's got a budget.
0:24:49 > 0:24:53- We thought 20,000, to be quite honest.- Right.
0:24:53 > 0:24:57Hopefully, he can come under that but he assures me it may not.
0:24:57 > 0:24:58- Right. - THEY LAUGH
0:24:59 > 0:25:03Nine months later, there's a new porch and space for a drive,
0:25:03 > 0:25:06an early priority for the construction vehicles,
0:25:06 > 0:25:08but the biggest changes are inside.
0:25:09 > 0:25:11# Anything could happen
0:25:11 > 0:25:14# Anything could Ooh, ooh, ooh,
0:25:14 > 0:25:16# Ooh, ooh, ooh, ooh, ooh
0:25:16 > 0:25:19# Ooh, ooh, ooh, ooh, ooh
0:25:19 > 0:25:22# Ooh, ooh, ooh Ooh, ooh, ooh... #
0:25:23 > 0:25:27The rearranged downstairs is much more spacious.
0:25:28 > 0:25:32There's even room for a downstairs loo under the staircase...
0:25:33 > 0:25:35..which has moved to the back wall of the property
0:25:35 > 0:25:37instead of next to the front door.
0:25:42 > 0:25:45The sitting room is certainly in the pink,
0:25:45 > 0:25:47but this time in a good way.
0:25:50 > 0:25:53One of the triumphs of the new layout is the bathroom,
0:25:53 > 0:25:55which they've squeezed in upstairs
0:25:55 > 0:25:57with a new dormer window.
0:25:57 > 0:26:00# But now I've seen it through
0:26:00 > 0:26:02# And now I know the truth
0:26:02 > 0:26:04# That anything could happen. #
0:26:04 > 0:26:08The P-shaped bath makes the most of the confined space
0:26:08 > 0:26:10to squeeze a shower above it.
0:26:12 > 0:26:16# Anything could happen Anything could happen
0:26:16 > 0:26:19# Anything could Ooh, ooh, ooh
0:26:19 > 0:26:21# Ooh, ooh, ooh, ooh, ooh
0:26:21 > 0:26:25# Ooh, ooh, ooh, ooh, ooh Ooh... #
0:26:25 > 0:26:27With the under paper insulation removed
0:26:27 > 0:26:29and the walls replastered,
0:26:29 > 0:26:32they're able to breathe again.
0:26:32 > 0:26:35And flippers are no longer required at bedtime.
0:26:38 > 0:26:41Now the three bedrooms are serviceable
0:26:41 > 0:26:44without the damp or strange wood cladding.
0:26:44 > 0:26:45It looks great.
0:26:49 > 0:26:52But this journey has not been without its elephant traps,
0:26:52 > 0:26:55mainly pink elephant traps.
0:26:55 > 0:26:59It was terrible, really, and it was a lot worse than we thought.
0:26:59 > 0:27:02It needed a lot more work doing.
0:27:02 > 0:27:04We realised there were problems with the roof.
0:27:04 > 0:27:06The roof looked to be in good order
0:27:06 > 0:27:08but, apparently, it wasn't when the builders came in.
0:27:10 > 0:27:13Which just goes to show the value of a structural survey.
0:27:14 > 0:27:15Looking back on the old roof,
0:27:15 > 0:27:17it's hard to see any problems from the outside.
0:27:17 > 0:27:20They only came to light later in the day.
0:27:20 > 0:27:24When we took the plaster off and all the panelling,
0:27:24 > 0:27:26there was a roof joist which had got a big bow in it,
0:27:26 > 0:27:29and, of course, which left the roof down by one foot.
0:27:29 > 0:27:30Only one foot,
0:27:30 > 0:27:34but all the water started coming in on the inside of the house
0:27:34 > 0:27:37and down when it rained heavily.
0:27:37 > 0:27:39When the work wasn't specialised,
0:27:39 > 0:27:43Malcolm was ready to help his domino-playing builder chum.
0:27:43 > 0:27:46Even so, with the roof problems and having to tank out
0:27:46 > 0:27:49all of the downstairs to prevent damp,
0:27:49 > 0:27:52they overran their initial timescale of six months
0:27:52 > 0:27:54by an additional two months.
0:27:54 > 0:27:57But the team were lucky with some of the job.
0:27:57 > 0:28:00Took two chimney breasts down,
0:28:00 > 0:28:02which was a bigger job than we thought.
0:28:02 > 0:28:05And we started about that the wrong way, apparently. We did.
0:28:05 > 0:28:07We should have started from the top and come down,
0:28:07 > 0:28:10we started from the bottom and worked our way up.
0:28:10 > 0:28:11HE LAUGHS
0:28:11 > 0:28:14Yes, hardly the approved method.
0:28:14 > 0:28:17It can lead to the domino effect, don't you know?
0:28:17 > 0:28:20But removing this chimney breast from the kitchen
0:28:20 > 0:28:22gained another two feet in width.
0:28:22 > 0:28:24And if you're wondering about the lack of radiators,
0:28:24 > 0:28:28Malcolm and Brenda decided on underfloor heating
0:28:28 > 0:28:30to save space downstairs.
0:28:31 > 0:28:35But all these late additions must have affected the cost.
0:28:35 > 0:28:37What was the original budget, Malcolm?
0:28:37 > 0:28:3920 grand, didn't we?
0:28:39 > 0:28:41- You did.- I did.
0:28:41 > 0:28:44My wife Brenda here said a lot more, which it was.
0:28:44 > 0:28:46It was double that actually.
0:28:46 > 0:28:49It was close on 40 when the outside's complete
0:28:49 > 0:28:50and everything is completed.
0:28:50 > 0:28:53Just over 40,000 we've spent.
0:28:53 > 0:28:56So, £131,000 at auction
0:28:56 > 0:28:59plus £40,000 spent on refurbishment.
0:28:59 > 0:29:02Time to find out if it's been worthwhile.
0:29:02 > 0:29:05We called upon two professionals to get their view.
0:29:10 > 0:29:13First up, the auctioneer who sold Malcolm and Brenda the property.
0:29:14 > 0:29:17And hot on his heels, a local surveyor.
0:29:18 > 0:29:20So, first impressions...
0:29:21 > 0:29:24You expect properties to change when you come back and see them
0:29:24 > 0:29:27but this is probably one of those properties where
0:29:27 > 0:29:30it's almost now beyond recognition to what it was.
0:29:30 > 0:29:32Massive change taken place
0:29:32 > 0:29:34and really a great transformation. It works very well.
0:29:34 > 0:29:36To open the whole thing up and put a new staircase in,
0:29:36 > 0:29:39almost sort of revamp the ground floor area there,
0:29:39 > 0:29:41is exactly the right thing to do.
0:29:41 > 0:29:44You've got an impression of space now that you never had before.
0:29:44 > 0:29:48Bathroom upstairs and a nice little cloakroom under the stairs.
0:29:48 > 0:29:51You know, all these things make living today very nice indeed.
0:29:51 > 0:29:52So, much impressed.
0:29:52 > 0:29:55This now makes a nice living room, dining room or whatever.
0:29:55 > 0:29:57You've got a good sitting room next door as well
0:29:57 > 0:29:59and a smart kitchen.
0:29:59 > 0:30:01And I think, altogether, you've got three usable rooms
0:30:01 > 0:30:04on the ground floor, and that's a big improvement.
0:30:04 > 0:30:07Malcolm and Brenda's preference is to rent out.
0:30:07 > 0:30:11So, what do the chaps think is a reasonable rent?
0:30:11 > 0:30:16I think this house could realise towards £600 per calendar month here.
0:30:16 > 0:30:18There is a very strong rental market indeed.
0:30:18 > 0:30:21It will rent out fairly readily at £600 a calendar month.
0:30:23 > 0:30:26- That's about what we thought, isn't it, really?- Yes, yes.- It is.
0:30:26 > 0:30:28- It is. Yes.- Yes. Yeah, it is.
0:30:28 > 0:30:31In fact, Malcolm and Brenda have got an intended tenant
0:30:31 > 0:30:34who will move in when the external work is completed.
0:30:36 > 0:30:37They say they've agreed a rent in line
0:30:37 > 0:30:40with what the professionals have suggested.
0:30:40 > 0:30:42And that rental will give them
0:30:42 > 0:30:45a relatively modest yield of around 4%.
0:30:46 > 0:30:51What about resale values, bearing in mind they've spent 171,000?
0:30:51 > 0:30:56I think that the sale price for this could be in the region of £180,000
0:30:56 > 0:30:59to possibly 190,000 top whack.
0:30:59 > 0:31:01I do not see it realising £200,000
0:31:01 > 0:31:03because of the limitations of the position.
0:31:03 > 0:31:05Assuming it's finished off outside,
0:31:05 > 0:31:08so we've got the driveway and maybe a garage as well,
0:31:08 > 0:31:12this would go on the market at a figure of around £180,000.
0:31:12 > 0:31:16I'd expect to get around £175,000 for it.
0:31:17 > 0:31:20- That's about what we thought, isn't it, really?- Yes, it is. Yeah, yeah.
0:31:20 > 0:31:22- It is, yes.- That's quite good, really.
0:31:22 > 0:31:25- Yeah. I'm not too disappointed in that, no.- No.
0:31:25 > 0:31:31The £9,000 possible profit, minus the usual tax and expenses,
0:31:31 > 0:31:32means that Malcolm and Brenda
0:31:32 > 0:31:36will be hanging on to their house for a little while yet.
0:31:36 > 0:31:38So, have they learned any lessons?
0:31:38 > 0:31:40THEY LAUGH
0:31:40 > 0:31:42Probably to buy a house in a bit better condition.
0:31:42 > 0:31:44Yes, yes. We'd walk away.
0:31:49 > 0:31:53Shildon, in County Durham, was the first railway town ever
0:31:53 > 0:31:56because, on the 27th September 1825,
0:31:56 > 0:32:00the world's first passenger train started its journey here.
0:32:00 > 0:32:03The National Railway Museum has commemorated this
0:32:03 > 0:32:06with exhibition halls of preserved buildings.
0:32:06 > 0:32:10The engine, Locomotion One, looked a bit like this,
0:32:10 > 0:32:13but it only had four wheels instead of six.
0:32:13 > 0:32:17But when Shildon's wagon works shut in 1984,
0:32:17 > 0:32:21over 2,600 jobs were lost.
0:32:21 > 0:32:24Now, things are on the up with a major new housing development
0:32:24 > 0:32:26bringing new jobs to the area.
0:32:28 > 0:32:31So, steaming ahead to the property I'm here to see.
0:32:31 > 0:32:34Traditional, two-bedroomed mid-terrace
0:32:34 > 0:32:38at a guide price of £29,950+.
0:32:39 > 0:32:40Let's take a look.
0:32:41 > 0:32:42Right. Oh, hello.
0:32:42 > 0:32:44That looks quite pleasant.
0:32:44 > 0:32:45Stairs up to your bedrooms.
0:32:45 > 0:32:48Straightaway, it's amazing what difference a nice carpet makes.
0:32:48 > 0:32:49It just lifts the place.
0:32:49 > 0:32:53So it looks at first glance to be in not bad condition.
0:32:53 > 0:32:55You've got double glazing, central heating,
0:32:55 > 0:32:58front sitting room area here.
0:32:58 > 0:33:01Yeah, the decoration could do with a bit of touching up here and there
0:33:01 > 0:33:02but it's not bad.
0:33:02 > 0:33:05Oh, similarly the kitchen, you know?
0:33:05 > 0:33:06For a rental property - perfect.
0:33:06 > 0:33:08Actually a really nice place to live.
0:33:08 > 0:33:10For once...
0:33:10 > 0:33:11that is it.
0:33:13 > 0:33:17On the minus side, the back yard is hardly a paradise.
0:33:17 > 0:33:18But at least you've got
0:33:18 > 0:33:21that all-important bit of an outside space
0:33:21 > 0:33:24accessed via an alley at the back.
0:33:24 > 0:33:27# Clean up your own back yard
0:33:29 > 0:33:33# Oh, don't you hand me none of your lines... #
0:33:35 > 0:33:37- BANGS - Oops.
0:33:37 > 0:33:40Bit of a design flaw that, isn't it?
0:33:40 > 0:33:43Apart from that though, the bathroom and toilet -
0:33:43 > 0:33:46exactly where you'd hope it would be - top of the stairs.
0:33:46 > 0:33:47I suppose...
0:33:47 > 0:33:49Often with these properties out the back
0:33:49 > 0:33:51and it's in half decent condition.
0:33:51 > 0:33:52Yeah. Good.
0:33:53 > 0:33:55Bonus size basin or not,
0:33:55 > 0:33:58the inside of this house is better than some
0:33:58 > 0:34:01I've been in after a refurbishment.
0:34:02 > 0:34:06I'm struggling to find fault but, of course, I found something.
0:34:07 > 0:34:12Now, the upstairs layout is nothing short of extraordinary.
0:34:12 > 0:34:15We've got two bedrooms but I...
0:34:15 > 0:34:18don't think I've...
0:34:18 > 0:34:19Well, not ever.
0:34:19 > 0:34:23But, in recent times, seen such a badly-designed use of space.
0:34:23 > 0:34:26You've got this little corridor thing here,
0:34:26 > 0:34:27which basically just leads to a door.
0:34:27 > 0:34:30That's a bedroom there which is a bit too small,
0:34:30 > 0:34:32and then you come into this bedroom here
0:34:32 > 0:34:34and you've got this little area over here
0:34:34 > 0:34:36which goes back into, presumably,
0:34:36 > 0:34:38where the other side of the bedroom is.
0:34:38 > 0:34:39All these walls -
0:34:39 > 0:34:41- HE BANGS - as you can hear -
0:34:41 > 0:34:42are not supporting walls,
0:34:42 > 0:34:44they're stud partitions, basically bits of wood
0:34:44 > 0:34:47and plasterboard on the outside, so you can take those out.
0:34:47 > 0:34:48But somebody had put them in.
0:34:48 > 0:34:52Somebody sat down with a piece of paper
0:34:52 > 0:34:54and designed it like this!
0:34:56 > 0:34:58Amazing.
0:34:58 > 0:34:59Well, apart from that,
0:34:59 > 0:35:02this property has lots going for it.
0:35:02 > 0:35:05All the major works appear to have been done,
0:35:05 > 0:35:08and there are just a few little bits and pieces
0:35:08 > 0:35:11that could be sorted out for relatively little cost.
0:35:11 > 0:35:16And a great guide price of just short of £30,000.
0:35:16 > 0:35:18Time to speak to a local property expert to find out more
0:35:18 > 0:35:21about the housing market in this area
0:35:21 > 0:35:24and what she thinks this little house offers.
0:35:24 > 0:35:26The property has an upstairs bathroom,
0:35:26 > 0:35:28which is a major consideration,
0:35:28 > 0:35:31whether the owner wants to rent it out or to sell it,
0:35:31 > 0:35:32and two bedrooms.
0:35:32 > 0:35:35I wouldn't recommend any changes to the layout of the property.
0:35:35 > 0:35:37It'll work for the vast majority of people
0:35:37 > 0:35:40who would be interested either as purchasers or tenants.
0:35:40 > 0:35:42So, what about values then?
0:35:42 > 0:35:46What's the likelihood of renting this out if you wanted to?
0:35:46 > 0:35:50There's a lot of property that's rented out around here.
0:35:50 > 0:35:55It was very much a popular place to buy in the buy-to-let boom.
0:35:55 > 0:35:58And there is just a finite number of tenants, so...
0:35:59 > 0:36:01..you can't get too high a rent around here.
0:36:01 > 0:36:03You've got to remain competitive,
0:36:03 > 0:36:05otherwise, you'll have an empty house.
0:36:05 > 0:36:08At the moment, a property in this condition,
0:36:08 > 0:36:10we'd be anticipating a rent
0:36:10 > 0:36:13in the region of £300 per calendar month.
0:36:13 > 0:36:15And if it was refurbished to a very good standard,
0:36:15 > 0:36:17you could possibly push that up
0:36:17 > 0:36:20more towards the £350 per calendar month mark.
0:36:20 > 0:36:23And what about resale in the open market?
0:36:23 > 0:36:26There is a kind of ceiling price around here
0:36:26 > 0:36:28and that's £60,000.
0:36:28 > 0:36:30But this property, if it's done to a good standard,
0:36:30 > 0:36:33due to its location, should achieve quite close to that.
0:36:34 > 0:36:37Well, it might not be the most unusual property in the world,
0:36:37 > 0:36:40but it's a good little house.
0:36:40 > 0:36:44And you could pretty much move into it as it is,
0:36:44 > 0:36:47which is a very good thing indeed.
0:36:47 > 0:36:50Let's see who wanted almost an instant property
0:36:50 > 0:36:52when it went under the hammer.
0:36:53 > 0:36:58It's in a condition that is more or less ready to rent out.
0:36:58 > 0:37:02We've got this available with a price guide of 29,950+.
0:37:02 > 0:37:04Can I ask for 30,000?
0:37:04 > 0:37:05Any bid at 30?
0:37:07 > 0:37:08How about 28 to start?
0:37:08 > 0:37:1028,000.
0:37:12 > 0:37:14ROOM STAYS QUIET
0:37:16 > 0:37:17It's double glazed.
0:37:17 > 0:37:19THEY LAUGH
0:37:20 > 0:37:2228,000.
0:37:22 > 0:37:2328,000, anybody?
0:37:24 > 0:37:26Right at the back at 28,000. Thank you.
0:37:26 > 0:37:2729,000.
0:37:27 > 0:37:29I have one bid of 28,000.
0:37:29 > 0:37:31Do I have 29,000 anywhere else?
0:37:31 > 0:37:34One bid. 29,000 standing.
0:37:34 > 0:37:3530.
0:37:35 > 0:37:3730,000 standing.
0:37:37 > 0:37:3931. 31 bid.
0:37:39 > 0:37:4232 bid. 33.
0:37:42 > 0:37:44I'm in the room at £32,000.
0:37:44 > 0:37:4632,500.
0:37:46 > 0:37:47You've been unlucky on the rest.
0:37:47 > 0:37:4832,500.
0:37:48 > 0:37:50And I'll buy you a pint.
0:37:53 > 0:37:55You've been here from the beginning.
0:37:55 > 0:37:5732,500.
0:37:57 > 0:37:59Trust me. Try.
0:37:59 > 0:38:01I'll take 250 then.
0:38:01 > 0:38:04I'm feeling sorry for you. 32,250.
0:38:04 > 0:38:06No? 32,000.
0:38:06 > 0:38:07Do I have 32,250 anywhere else?
0:38:07 > 0:38:11I'm here. I'm at the back at £32,000.
0:38:12 > 0:38:14Are you sure? 32,250?
0:38:14 > 0:38:16You have to say yes, we're all watching you now.
0:38:16 > 0:38:17THEY LAUGH
0:38:17 > 0:38:20You have to. 32,250.
0:38:20 > 0:38:2132,250.
0:38:21 > 0:38:23- LAUGHTER - 32,500.
0:38:23 > 0:38:26Don't ruin him. 32,250. I need 32,500.
0:38:27 > 0:38:29I'm going once at 32,250.
0:38:30 > 0:38:34I'm going for the second time at 32,250.
0:38:34 > 0:38:35- GAVEL BANGS - Sold.
0:38:35 > 0:38:39Gentleman on the right-hand side at 32,250.
0:38:41 > 0:38:43Well, persuaded by the promise of a pint
0:38:43 > 0:38:47is financial services worker Howard.
0:38:47 > 0:38:48Originally from London,
0:38:48 > 0:38:52he's lived and worked in the Northeast for the last ten years.
0:38:52 > 0:38:53- Howard, good to meet you.- Hi.
0:38:53 > 0:38:55Congratulations.
0:38:55 > 0:38:58That was a bit of an unusual sales technique there.
0:38:58 > 0:39:00Yeah, I think the pint just put me over the edge
0:39:00 > 0:39:01and sealed the deal there.
0:39:01 > 0:39:03I was thinking about the bid
0:39:03 > 0:39:05and I was thinking about the prices and then
0:39:05 > 0:39:08he said it and the room just seemed to wait, and I thought,
0:39:08 > 0:39:11OK, if it's a pint... It's a hot night, I'll have it.
0:39:11 > 0:39:12- HE LAUGHS - So that was that.
0:39:12 > 0:39:15So, tell me why you wanted to buy this place?
0:39:15 > 0:39:17I didn't actually want to buy this place,
0:39:17 > 0:39:19I wanted to buy a house just up the road.
0:39:19 > 0:39:21- Right.- I went to see it.
0:39:21 > 0:39:23It was a complete wreck
0:39:23 > 0:39:25but it went for too much money.
0:39:25 > 0:39:27So, as a fallback, I thought I'll have a look at this place,
0:39:27 > 0:39:29it's already been done.
0:39:29 > 0:39:31And it's turned out it's been a lot better deal for me.
0:39:31 > 0:39:33So had you seen this one?
0:39:33 > 0:39:36I'd seen it on the street. I'd looked through the window
0:39:36 > 0:39:39but I hadn't actually planned on buying it.
0:39:39 > 0:39:41Right. So you hadn't been through the front door?
0:39:41 > 0:39:42- No.- Ha!- No.
0:39:42 > 0:39:46But I'd seen the street, I'd checked out the roof and things.
0:39:46 > 0:39:49No obvious signs of cracking or any subsidence,
0:39:49 > 0:39:52any of those obvious issues.
0:39:52 > 0:39:54When I went to the auction, I checked out the legal pack
0:39:54 > 0:39:55on the other property
0:39:55 > 0:39:59so I knew that there was no development planned for the area...
0:39:59 > 0:40:01- Right.- ..and things like that. So I'd done a little bit of research.
0:40:01 > 0:40:04I also looked on websites
0:40:04 > 0:40:07and looked at what the houses had sold for in the area in the past
0:40:07 > 0:40:09and what they were renting for at the moment.
0:40:09 > 0:40:11Right. So you knew what you were doing.
0:40:11 > 0:40:13You looked at the legal pack for this one though?
0:40:13 > 0:40:15- No. It wasn't available at the time. - Oh, really?
0:40:15 > 0:40:18- Yes.- Wow. So what happens in those circumstances?
0:40:18 > 0:40:21What happens is, you agree to buy it, they guarantee the title
0:40:21 > 0:40:24and then it goes off to a solicitor after the auction,
0:40:24 > 0:40:26- and if the title's not correct, then you can withdraw.- Right.
0:40:26 > 0:40:29Obviously, if the title is correct, you proceed.
0:40:29 > 0:40:31Right. So if there are things like nasty covenants
0:40:31 > 0:40:33or strange things in there, you'd be covered?
0:40:33 > 0:40:35- Yeah, you can then pull out.- Right.
0:40:35 > 0:40:38- OK.- Which I thought gave me some protection.- Right.
0:40:38 > 0:40:40Well, you must have been pleasantly surprised
0:40:40 > 0:40:42- when you walked in the front door. - Yes, yes.
0:40:42 > 0:40:44It's a lot cleaner than I thought.
0:40:44 > 0:40:47It needs very little work doing to it.
0:40:47 > 0:40:49So, yeah, I'm really, really pleased.
0:40:49 > 0:40:51So why have you bought it?
0:40:51 > 0:40:53Well, originally, it was for a friend of mine.
0:40:53 > 0:40:56He thought that we were buying the other house as well.
0:40:56 > 0:40:58He was away on holiday and, when he came back,
0:40:58 > 0:41:00I told him that we'd actually bought this house.
0:41:00 > 0:41:03We then had a subsequent chat and it's something we're doing together.
0:41:03 > 0:41:06- Right.- So we're actually going to go into business together...
0:41:06 > 0:41:08- Oh, great.- ..and have the house.
0:41:08 > 0:41:10- But that wasn't the original plan? - No, no.
0:41:10 > 0:41:11So, this pint of beer...
0:41:11 > 0:41:14- Yeah.- ..could lead to... Have you looked back at it and think,
0:41:14 > 0:41:16- whatever develops in the future... - Yeah.
0:41:16 > 0:41:18..could lead to a lot of things?
0:41:18 > 0:41:21- How life can change on a little thing like that.- I know, I know.
0:41:21 > 0:41:23- Wow.- I know.
0:41:23 > 0:41:26So, tell me what you are going to do to it then.
0:41:26 > 0:41:31Uh, basically, I think it's going to have a little tidy-up.
0:41:31 > 0:41:32Probably refresh the paintwork.
0:41:32 > 0:41:34There's a few cracks and things to fill.
0:41:34 > 0:41:39Upstairs, the sink is just far too big for the bathroom,
0:41:39 > 0:41:40so we're going to change the sink.
0:41:40 > 0:41:43There's a fairly new boiler in the property.
0:41:43 > 0:41:45The circuit board's OK.
0:41:45 > 0:41:47We're going to have the electrics tested,
0:41:47 > 0:41:49obviously the gas and things.
0:41:49 > 0:41:51Probably put a few kitchen appliances in,
0:41:51 > 0:41:52and that's about it, really.
0:41:52 > 0:41:54- And then rent it out? - Rent it out, yeah.
0:41:54 > 0:41:56Bring it back to market
0:41:56 > 0:41:59and hopefully some family will come and move in quite quickly.
0:41:59 > 0:42:01So the budget for what you are going to do?
0:42:01 > 0:42:05For the work that we're going to do - for the bathroom,
0:42:05 > 0:42:07I'm thinking around £200,
0:42:07 > 0:42:09white goods - similar,
0:42:09 > 0:42:11and then for paint - about £100.
0:42:11 > 0:42:13- So a total of about £500.- Wow.
0:42:13 > 0:42:16And it should be ready to go in two weeks.
0:42:16 > 0:42:18- Two weeks?- Two weeks, yeah.
0:42:18 > 0:42:19- Bing, bang, boom.- Yeah.
0:42:20 > 0:42:23Well, if he pulls that off, it could be drinks all round.
0:42:23 > 0:42:27# Drink, drink Let the toast start
0:42:27 > 0:42:30# May young hearts never part
0:42:30 > 0:42:32# Drink, drink, drink
0:42:32 > 0:42:36# Let every true lover salute his sweetheart
0:42:36 > 0:42:37# Let's drink! #
0:42:37 > 0:42:40Any other portfolio properties that you've got or...?
0:42:40 > 0:42:42Um, I've dabbled in property in the past
0:42:42 > 0:42:45and I do still have a couple that I have.
0:42:45 > 0:42:49And Kevin has also got properties and a pub,
0:42:49 > 0:42:51so I may be getting my pint from him.
0:42:51 > 0:42:52MARTIN LAUGHS
0:42:52 > 0:42:54And, yeah, we're just really looking to build now
0:42:54 > 0:42:56on the partnership that we're going to form
0:42:56 > 0:42:59and to look for similar properties to this,
0:42:59 > 0:43:01maybe a bargain or two at the auction
0:43:01 > 0:43:03and, you know, move onwards and upwards.
0:43:03 > 0:43:06- Well, congratulations.- Thank you. - Good luck with it.- Thank you.
0:43:06 > 0:43:09- We look forward to seeing how you get on.- Thanks very much.
0:43:10 > 0:43:13So, Howard keeping a cool head
0:43:13 > 0:43:15when it came to buying this place.
0:43:15 > 0:43:17Hopefully it will be plain 's-ale-ing'
0:43:17 > 0:43:19when it comes to doing it up
0:43:19 > 0:43:21and not a "bitter" sweet experience for him.
0:43:21 > 0:43:23HE SNIGGERS
0:43:23 > 0:43:25- HE LAUGHS - You can find out how he gets on
0:43:25 > 0:43:28and if he gets that pint of beer later in the show.
0:43:32 > 0:43:35Well, this is the part of the show where we go back and find out
0:43:35 > 0:43:37if our buyers kept their promises.
0:43:37 > 0:43:40Or did they do everything they were supposed to?
0:43:40 > 0:43:41Let's find out.
0:43:44 > 0:43:47Now, back to Streatham, South London, where,
0:43:47 > 0:43:51earlier, this three-bedroomed 1930s second-floor flat
0:43:51 > 0:43:54was bought by Katie for 263,000
0:43:54 > 0:43:57as a joint venture with her two sisters.
0:43:58 > 0:44:01It's their first attempt at property development
0:44:01 > 0:44:03and, ideally, they wanted to sell on
0:44:03 > 0:44:05but would be happy to rent in the short term.
0:44:06 > 0:44:10But how about the division of labour between the siblings?
0:44:12 > 0:44:15I'll get my hands dirty as much as I can.
0:44:15 > 0:44:18- Just going to manage it, organise it, do a grand job of that?- Yeah.
0:44:18 > 0:44:20I think I'm more of a project manager.
0:44:20 > 0:44:22They're a bit more creative than me, so...
0:44:22 > 0:44:25- My sister is a visual merchandiser and that's what she loves doing.- Ah.
0:44:25 > 0:44:28So I'm going to leave it to her to choose colours and pillows
0:44:28 > 0:44:30and all the nice stuff.
0:44:31 > 0:44:3515 weeks ago, the flat needed some loving attention.
0:44:35 > 0:44:39Katie wanted a new kitchen, bathroom, new flooring
0:44:39 > 0:44:40and to redecorate
0:44:40 > 0:44:44with a more neutral tone than the previous owner's love of red.
0:44:44 > 0:44:47Time to find out what Katie did.
0:44:47 > 0:44:48# She's gone
0:44:49 > 0:44:53# And I'm picking up the pieces... #
0:44:55 > 0:44:58Katie and her sisters spent money where it mattered
0:44:58 > 0:45:00with this quality bathroom suite...
0:45:03 > 0:45:06..double shower cubicle in tandem with the bath,
0:45:06 > 0:45:08fully tiled in dual tones
0:45:08 > 0:45:11and slate flooring to contrast.
0:45:16 > 0:45:18The lounge too is transformed.
0:45:18 > 0:45:21# I found a photograph
0:45:21 > 0:45:24# Behind the TV
0:45:24 > 0:45:26# You look so happy
0:45:26 > 0:45:31# Are you missing the way it used to be? #
0:45:37 > 0:45:40A period fireplace with large mirror above
0:45:40 > 0:45:42is one of my favourite combinations
0:45:42 > 0:45:45when it comes to restoring the authentic '30s look.
0:45:47 > 0:45:49The girls did save money in the kitchen
0:45:49 > 0:45:52deciding the existing units would be serviceable enough
0:45:52 > 0:45:53in the short term.
0:45:55 > 0:45:59The white wall tiles bring a much brighter look
0:45:59 > 0:46:01and all the wooden floors in the flat have been polished
0:46:01 > 0:46:05and, where possible, lifted with a lighter stain.
0:46:18 > 0:46:21Katie reckons the work took around a month,
0:46:21 > 0:46:24shorter than her original estimate of six weeks.
0:46:24 > 0:46:25She did, however, have a delay
0:46:25 > 0:46:28of about eight weeks waiting for a mortgage.
0:46:34 > 0:46:37And she didn't forget to rejuvenate that bijou...
0:46:38 > 0:46:39..but bonnie balcony.
0:46:44 > 0:46:47We've heard a lot about them. Now it's time to meet them.
0:46:47 > 0:46:49Katie's sisters are back in town.
0:46:49 > 0:46:54On the left - visual merchandiser Emily, from Southampton.
0:46:54 > 0:46:57In the middle - Ellie, who lives in Kent
0:46:57 > 0:47:00and works as a clinical coordinator with the NHS.
0:47:00 > 0:47:03And we all know Katie, who freely admits
0:47:03 > 0:47:05she got some help from a local builder.
0:47:05 > 0:47:09It was really the kind of the hard...elbow work
0:47:09 > 0:47:10- that we weren't involved in...- Yeah.
0:47:10 > 0:47:13- ..and we're not too upset that we weren't.- No.
0:47:13 > 0:47:16- And we did do the first clean when we came round.- Oh, yeah.
0:47:16 > 0:47:18- You know, realised... - A lot of cleaning.
0:47:18 > 0:47:20..how much actually needed doing, so...
0:47:20 > 0:47:22- We did a bit of cleaning. - THEY LAUGH
0:47:22 > 0:47:25Elbow grease aside, did it all go smoothly?
0:47:25 > 0:47:26Couple of strops with...
0:47:26 > 0:47:29- Colours and stuff. - ..tiles and who wants what.
0:47:30 > 0:47:33I bought the tiles for the floor in the bathroom,
0:47:33 > 0:47:35and we weren't sure at the time if it would be too dark,
0:47:35 > 0:47:37so we were kind of debating about it,
0:47:37 > 0:47:40- and when we saw it, we were really, really pleased.- Yeah.
0:47:40 > 0:47:42I chose the colour of this room.
0:47:42 > 0:47:44Emily wanted it slightly more grey.
0:47:44 > 0:47:46Those two chose the bathroom.
0:47:46 > 0:47:48And then I think we all wanted white, really.
0:47:48 > 0:47:52The girls have been hoping to keep costs around the mid 20,000 mark,
0:47:52 > 0:47:55and that was to include extending the lease.
0:47:55 > 0:47:58However, rather than 12,000 to extend the lease,
0:47:58 > 0:48:01that is going to be nearer £20,000 on its own.
0:48:01 > 0:48:04Although it will make the flat more saleable,
0:48:04 > 0:48:06it is a significant increase.
0:48:06 > 0:48:12In fact, it looks like their final spend will be £35,800.
0:48:12 > 0:48:13Are they pleased?
0:48:13 > 0:48:16- ALL:- Yeah. - Yeah, we're really quite chuffed.
0:48:16 > 0:48:17- I'd be happy to live here.- Yes.
0:48:17 > 0:48:20And friends and things I show round sort of come in and go,
0:48:20 > 0:48:23"I'd live here," so that's quite a big boost.
0:48:24 > 0:48:27Well, let's see if we can give the girls another big boost.
0:48:27 > 0:48:30We asked two estate agents along to give us their thoughts
0:48:30 > 0:48:32and valuations on the girls' investment
0:48:32 > 0:48:35of 263,000 they paid at auction
0:48:35 > 0:48:39plus £35,800 on refurbishment
0:48:39 > 0:48:40and sorting the lease,
0:48:40 > 0:48:45making a total spend of £298,800.
0:48:47 > 0:48:48First impressions are very good.
0:48:48 > 0:48:50It's a very bright property. Very airy.
0:48:50 > 0:48:53You get a great feeling of space as you come through the hallway.
0:48:53 > 0:48:54It's really nice.
0:48:54 > 0:48:58Generally walking around - very, very bright, nicely done
0:48:58 > 0:49:00and I think it's a good job.
0:49:00 > 0:49:02Yes, I think good job indeed.
0:49:02 > 0:49:04But what will this good job be worth
0:49:04 > 0:49:07when it comes to renting the flat out?
0:49:07 > 0:49:11I think this property could rent out for £1,300 per calendar month.
0:49:11 > 0:49:13I think this property would rent very well
0:49:13 > 0:49:16for £1,650 per calendar month.
0:49:16 > 0:49:18But the girls haven't hung around.
0:49:18 > 0:49:20They've already found a tenant
0:49:20 > 0:49:24who's going to pay £1,450 per calendar month.
0:49:24 > 0:49:26Slightly below the estate agents' average,
0:49:26 > 0:49:29but still giving them a yield of 5.8%.
0:49:30 > 0:49:32It was actually a friend of mine,
0:49:32 > 0:49:35really close friend of mine's boyfriend
0:49:35 > 0:49:37who's looking for a three bed in Streatham.
0:49:37 > 0:49:39We had a girls' holiday and I turned up and... Just...
0:49:40 > 0:49:42..came out that her boyfriend was looking
0:49:42 > 0:49:44and as soon as we got back that night,
0:49:44 > 0:49:48I showed him and his friends around and they absolutely loved the place.
0:49:49 > 0:49:51The girls are renting until they sort the lease out.
0:49:51 > 0:49:56But what would their total investment of £298,800 realise
0:49:56 > 0:49:59if the property went to market?
0:49:59 > 0:50:02I think, assuming the relatively short lease at the moment
0:50:02 > 0:50:05of 65 years was extended, I think we could
0:50:05 > 0:50:08safely put it on the market at £375,000
0:50:08 > 0:50:10and expect to achieve that.
0:50:10 > 0:50:14This property would achieve between 400,000 and £410,000.
0:50:14 > 0:50:15- Good.- That's really good.- Yeah.
0:50:15 > 0:50:18- That's really good. - We were thinking...
0:50:18 > 0:50:22- I mean, Katie thought sort of 380-ish...- Yeah.
0:50:22 > 0:50:25I was thinking 400 cos I'm an optimist.
0:50:25 > 0:50:28Well, I think even a pessimist would be happy
0:50:28 > 0:50:29with the top valuation,
0:50:29 > 0:50:31as it could give them a potential profit
0:50:31 > 0:50:36of £111,200, minus taxes and expenses.
0:50:36 > 0:50:39So, I think I know the answer to this one -
0:50:39 > 0:50:41would they do it again?
0:50:41 > 0:50:43Yes, we are planning to buy another one
0:50:43 > 0:50:45in the next couple of months, hopefully.
0:50:45 > 0:50:48- Probably at auction again.- Yeah.
0:50:48 > 0:50:51We don't have quite as large a budget as we did previously,
0:50:51 > 0:50:55so we think we might look at looking outside London,
0:50:55 > 0:50:58so potentially Southampton because that's where I live,
0:50:58 > 0:51:00so maybe I can take the lead with that one.
0:51:01 > 0:51:03- Should be good.- Sounds good to me. THEY LAUGH
0:51:03 > 0:51:06# Sisters, sisters
0:51:06 > 0:51:09# There were never such devoted sisters. #
0:51:13 > 0:51:15Back now to the Northeast
0:51:15 > 0:51:18and the town of Shildon, County Durham, where earlier,
0:51:18 > 0:51:20this two-bedroomed, mid-terraced
0:51:20 > 0:51:24was bought by Howard for £32,250.
0:51:25 > 0:51:27The deal was sealed after the auctioneer
0:51:27 > 0:51:29offered to buy Howard a drink.
0:51:29 > 0:51:31He thought...
0:51:31 > 0:51:32OK, if it's a pint...
0:51:32 > 0:51:34It's a hot night, I'll have it. HE LAUGHS
0:51:34 > 0:51:38- So that was that.- So, tell me why you wanted to buy this place?
0:51:38 > 0:51:39I didn't actually want to buy this place,
0:51:39 > 0:51:41I wanted to buy a house just up the road...
0:51:41 > 0:51:44- Right.- ..but it went for too much money.
0:51:44 > 0:51:45So why have you bought it?
0:51:45 > 0:51:47Well, originally, it was for a friend of mine.
0:51:47 > 0:51:50He thought that we were buying the other house as well.
0:51:50 > 0:51:52He was away on holiday and when he came back
0:51:52 > 0:51:54I told him that we had actually bought this house.
0:51:54 > 0:51:56We then had a subsequent chat
0:51:56 > 0:51:58and it's something we're going to do together.
0:51:58 > 0:52:02After the auction, Howard saw inside the house for the first time.
0:52:02 > 0:52:06Like me, he was surprised at how little renovation was required.
0:52:06 > 0:52:09He budgeted £200 for filling cracks
0:52:09 > 0:52:11and touching up paint work,
0:52:11 > 0:52:14and a further £300 to change the bathroom sink
0:52:14 > 0:52:16for a more reasonably-sized one
0:52:16 > 0:52:19and for some new kitchen white goods.
0:52:19 > 0:52:22Now we're back to find out how Howard has been getting on.
0:52:22 > 0:52:25It's been nine months now since first filming
0:52:25 > 0:52:28and I've done very little, to be honest.
0:52:28 > 0:52:30Well, they say honesty is the best policy,
0:52:30 > 0:52:32and it certainly paid off for Howard.
0:52:32 > 0:52:35Before we could catch up with him, he'd got a tenant.
0:52:35 > 0:52:40# Well, I'm a lucky man... #
0:52:40 > 0:52:43So, apart from being occupied, what's changed?
0:52:43 > 0:52:46I had a spare key cut for the door so the tenant could get in and out.
0:52:47 > 0:52:50I replaced the shower curtain and pole.
0:52:50 > 0:52:54I didn't have to change the sink, so that was an expense I didn't have.
0:52:54 > 0:52:57I gave the tenant the choice of the sink.
0:52:57 > 0:52:59I was concerned that the door would bang against the sink
0:52:59 > 0:53:02and it was oversized for the room but she seemed quite happy with it,
0:53:02 > 0:53:05so we've left that rather than disturbing it,
0:53:05 > 0:53:09so that's saved me kind of £70, £80 for changing the sink
0:53:09 > 0:53:11and that could be used on another property perhaps.
0:53:11 > 0:53:14Howard has appointed a property management company
0:53:14 > 0:53:16to do the day-to-day running.
0:53:16 > 0:53:18They take 10% of the rent.
0:53:18 > 0:53:21He'd asked them to fix a new side panel to the bath,
0:53:21 > 0:53:22but when it came to it,
0:53:22 > 0:53:25all that was needed was a refitting of the old one.
0:53:25 > 0:53:30No change there then, apart from the shower curtain and pole.
0:53:30 > 0:53:32But what about outside?
0:53:32 > 0:53:34The back yard really just needed a tidy-up
0:53:34 > 0:53:36and that's all that's been done,
0:53:36 > 0:53:38so, very, very little outside as well.
0:53:38 > 0:53:39If you're having difficulty
0:53:39 > 0:53:41spotting the difference in the back yard,
0:53:41 > 0:53:43this is before the tidy-up...
0:53:45 > 0:53:47..and this is after.
0:53:50 > 0:53:52Can't have made too big an impact on the budget.
0:53:53 > 0:53:55My budget has been very, very small.
0:53:55 > 0:53:58I've stuck to it and I've come in well underneath.
0:53:58 > 0:54:01Now, the original timescale was two weeks.
0:54:01 > 0:54:03Was that overgenerous too?
0:54:03 > 0:54:04I came for one afternoon.
0:54:04 > 0:54:07I spent a couple of hours and that's been it.
0:54:07 > 0:54:08It's been a really simple process.
0:54:08 > 0:54:12But Howard did end up undertaking one of those unforeseen
0:54:12 > 0:54:14and unplanned for jobs
0:54:14 > 0:54:17that come to light only after renovation work has started.
0:54:19 > 0:54:21He changed some light bulbs.
0:54:21 > 0:54:23Well, I've changed the one in here,
0:54:23 > 0:54:26so I've got all energy-saving light bulbs around the house.
0:54:27 > 0:54:29And not even all of those needed changing
0:54:29 > 0:54:30cos there was already a couple in here.
0:54:30 > 0:54:34So my total spend on light bulbs was just under £5.
0:54:36 > 0:54:38# That's why I'm easy... #
0:54:38 > 0:54:41What does business partner Kevin think of the finances?
0:54:41 > 0:54:44He was with me when I bought the light bulbs,
0:54:44 > 0:54:46so we did discuss that.
0:54:46 > 0:54:47And we also decided between us
0:54:47 > 0:54:50that we were going to have an extra set of keys.
0:54:50 > 0:54:52Apart from that, he's really a silent partner.
0:54:52 > 0:54:55He's been sat back and I've just taken care of everything.
0:54:55 > 0:55:00In fact, of his original £500 estimated refurbishment budget,
0:55:00 > 0:55:05Howard's only spent £151.
0:55:05 > 0:55:10But he did also pay £32,250 on behalf of Kevin at auction
0:55:10 > 0:55:14before they decided to become business partners.
0:55:14 > 0:55:20Time to find out if all that hard work, ho-ho-ho, has paid off.
0:55:20 > 0:55:23We invited two local estate agents round to get their opinions.
0:55:24 > 0:55:26The property doesn't seem to have changed very much
0:55:26 > 0:55:30from when we saw it the first time but it is now lived in,
0:55:30 > 0:55:32so it does look a little bit different.
0:55:32 > 0:55:34But the actual condition of the property
0:55:34 > 0:55:37is just as when we saw it last.
0:55:37 > 0:55:41The property has been done to a decent standard, in my opinion,
0:55:41 > 0:55:43for a terraced property of this type.
0:55:43 > 0:55:46I feel that more upgrading could have been done
0:55:46 > 0:55:48to make it superficially better.
0:55:48 > 0:55:50To be fair, if it had been my property,
0:55:50 > 0:55:53I would have done a redecoration,
0:55:53 > 0:55:56tried to improve the kitchen somewhat and the bathroom,
0:55:56 > 0:55:58but the fact that it's been let already
0:55:58 > 0:56:01would possibly indicate that that wasn't necessary.
0:56:01 > 0:56:05I would have definitely changed a little bit more in the kitchen
0:56:05 > 0:56:08and upgraded it, made it lighter and more open...
0:56:10 > 0:56:12..but, other than that, I think there wasn't a lot...
0:56:12 > 0:56:14a lot more that could have been done to the property.
0:56:14 > 0:56:16To put this property up for rent,
0:56:16 > 0:56:20I would recommend asking £325 per calendar month.
0:56:20 > 0:56:24I think we could achieve £325 per calendar month
0:56:24 > 0:56:26for a property of this calibre.
0:56:26 > 0:56:28Yeah, that's about right. That's what I'd looked at.
0:56:28 > 0:56:31I'd looked at slightly more but didn't think it was realistic.
0:56:31 > 0:56:33For me, I'd rather get a bit less money and have a tenant
0:56:33 > 0:56:37who's happy and stay put rather than changing every six months.
0:56:37 > 0:56:38But the reality is,
0:56:38 > 0:56:41Howard got a tenant through his property management company.
0:56:42 > 0:56:44After their 10% commission,
0:56:44 > 0:56:47he's actually getting £315 per calendar month.
0:56:48 > 0:56:50So the yield on his total spend
0:56:50 > 0:56:53works out at just over 11.5%.
0:56:53 > 0:56:54Cracking.
0:56:56 > 0:56:58And what about resale?
0:56:58 > 0:57:00To put this property up for sale,
0:57:00 > 0:57:02I would recommend an asking price of £60,000
0:57:02 > 0:57:06but I think the seller would have to be prepared to receive offers
0:57:06 > 0:57:08significantly below that figure.
0:57:08 > 0:57:10I think, for sale,
0:57:10 > 0:57:14we could achieve in the region of £55,000 for this property.
0:57:15 > 0:57:21£55,000 would mean a potential profit of £22,600
0:57:21 > 0:57:23minus the usual tax and expenses.
0:57:24 > 0:57:27I think it's good to know that the value is there.
0:57:27 > 0:57:30I knew that I'd bought it and had a good price at the time.
0:57:30 > 0:57:33However, I didn't buy it just to sell it on.
0:57:33 > 0:57:35I'm happy with the tenant, I'm happy with the return at the moment.
0:57:35 > 0:57:37So, yeah, if anything,
0:57:37 > 0:57:39I'll probably remortgage the property
0:57:39 > 0:57:42and then look at using some of that extra capital
0:57:42 > 0:57:44to go back to auction and buy another house.
0:57:44 > 0:57:45Speaking of auctions,
0:57:45 > 0:57:49has Howard chased up the auctioneer yet about his offer?
0:57:49 > 0:57:51No, he still owes me that pint.
0:57:51 > 0:57:54Next time I go back to the auction, I'm going to make sure that I get it.
0:57:54 > 0:57:57Well, good luck with that, Howard, because,
0:57:57 > 0:57:59in my book, given the deal you got,
0:57:59 > 0:58:02I think it's YOU that owes the auctioneer a pint.
0:58:09 > 0:58:10Well, that's it for today's show.
0:58:10 > 0:58:13We'll have more stories from the auction rooms of Britain
0:58:13 > 0:58:14for you next time.
0:58:14 > 0:58:16And we look forward to seeing you then.
0:58:16 > 0:58:17- Goodbye.- Goodbye.