0:00:02 > 0:00:03Hello and welcome to the programme.
0:00:03 > 0:00:05Even in this competitive market,
0:00:05 > 0:00:07- Martin and I love dabbling in property.- Yes, and we love the idea
0:00:07 > 0:00:09of getting a good deal.
0:00:09 > 0:00:11But it's not always easy.
0:00:11 > 0:00:13One way you still stand a good chance, though,
0:00:13 > 0:00:15is to buy your home under the hammer.
0:00:41 > 0:00:45Now, buying under the hammer is becoming increasingly popular.
0:00:45 > 0:00:48Millions of pounds worth of property sold every month.
0:00:48 > 0:00:51So, here are three properties that were sold at auction.
0:00:53 > 0:00:56In Cumbria, I'm considering a lot of options.
0:00:56 > 0:01:00I'm thinking about all the potential uses for this house,
0:01:00 > 0:01:02and there are many.
0:01:02 > 0:01:06At this semi in Kent, there's plenty of potential, too.
0:01:06 > 0:01:10How many cars could you park on here, I wonder?
0:01:10 > 0:01:11And in Chorley, Lancashire,
0:01:11 > 0:01:14there's more than enough room to do whatever you want.
0:01:14 > 0:01:16Uh, it's all a bit sparse, isn't it?
0:01:18 > 0:01:21All these properties have been sold at auction.
0:01:21 > 0:01:24We'll find out who bought them and what they paid for them
0:01:24 > 0:01:25when they went under the hammer.
0:01:31 > 0:01:33I'm in Seascale, on the Cumbrian coast.
0:01:33 > 0:01:37Many of the names around here have Norse origins,
0:01:37 > 0:01:40after Norseman retreating from King Harald Fairhair
0:01:40 > 0:01:42settled this lovely coastline.
0:01:42 > 0:01:44It's believed that this town's name
0:01:44 > 0:01:46originates from the Norse word skali,
0:01:46 > 0:01:48meaning shelter and wooden hut.
0:01:48 > 0:01:50Well, the property I'm here to see
0:01:50 > 0:01:52is definitely more than a wooden hut.
0:01:52 > 0:01:54In fact, it's almost a mansion.
0:01:54 > 0:01:59It's this detached house, double-fronted, over three floors.
0:01:59 > 0:02:02It's got four reception rooms, eight bedrooms, a garden room
0:02:02 > 0:02:07and there's flat at the back, all for a guide price of £110,000 plus.
0:02:07 > 0:02:10King Harald Fairhair would be impressed.
0:02:13 > 0:02:18So we know it's going to be big, but how is it laid out?
0:02:18 > 0:02:21Well, nice, large entrance, as you'd hope for.
0:02:21 > 0:02:23A big sort of reception room over that way
0:02:23 > 0:02:26and an equally big one over that way.
0:02:26 > 0:02:30Straight away, I'm thinking about all the potential uses
0:02:30 > 0:02:32for this house, and there are many.
0:02:32 > 0:02:35Off this hallway, there are three reception rooms
0:02:35 > 0:02:40listed as a lounge, sitting room and dining room.
0:02:40 > 0:02:43But it looks like one of them has previously been a bedroom,
0:02:43 > 0:02:49which suggests this was a house of a multiple occupancy previously.
0:02:49 > 0:02:51A good-sized kitchen with lots of light.
0:02:51 > 0:02:54You could imagine a big table in here for a family to use.
0:02:54 > 0:02:58Or maybe even big enough to serve hotel guests. Hmm.
0:02:58 > 0:03:01And that's just the ground floor.
0:03:01 > 0:03:04I'm going to finally explore the first floor.
0:03:04 > 0:03:09Up here, nice landing area. A room there, your first of your bedrooms.
0:03:09 > 0:03:12And then, through this way, really interesting kind of layout.
0:03:12 > 0:03:15And I think this house has lots of hidden features
0:03:15 > 0:03:16just waiting to be discovered.
0:03:16 > 0:03:19It's nice that some of the fireplaces are still there.
0:03:19 > 0:03:21It's got double glazing, but it looks fairly old,
0:03:21 > 0:03:23so I don't know if that's due for replacement.
0:03:23 > 0:03:25But the layout here is quite interesting,
0:03:25 > 0:03:26cos you've got that room there
0:03:26 > 0:03:29and then you come through to this extra bedroom here.
0:03:29 > 0:03:32To create an extra room, you might want to separate those off.
0:03:32 > 0:03:36But then this leads back out into a little landing area.
0:03:36 > 0:03:41Um... Another really good-sized room there.
0:03:41 > 0:03:43I mean, absolutely amazing.
0:03:43 > 0:03:45Enough room to potentially put on an en suite in that.
0:03:45 > 0:03:47And here - bathroom, shower room.
0:03:47 > 0:03:49Bff... Wow!
0:03:49 > 0:03:54I just love the scale of this house. The rooms are all a fantastic size.
0:03:54 > 0:03:58Can this amazing property continue to surprise?
0:03:58 > 0:04:02So, hop up to the top floor. And if you were expecting
0:04:02 > 0:04:05just a little attic bedroom, you are going to be in for a surprise
0:04:05 > 0:04:07because it just goes on and on up here.
0:04:07 > 0:04:09More bedrooms. Count them.
0:04:09 > 0:04:11One there, a little bathroom there,
0:04:11 > 0:04:13you've got another bedroom over there,
0:04:13 > 0:04:15bedroom there, bedroom there, another one here.
0:04:15 > 0:04:18They've all got loads of character cos they're built into the eaves
0:04:18 > 0:04:21and really nice.
0:04:21 > 0:04:22Nice, nice, nice. Gosh.
0:04:22 > 0:04:24What are you going to do with this place, then?
0:04:24 > 0:04:26It's probably not going to be one house.
0:04:26 > 0:04:29I don't think that really maximises the potential of this place.
0:04:29 > 0:04:33It's screaming out to be a house of multiple occupancy,
0:04:33 > 0:04:34an HMO.
0:04:34 > 0:04:37Rent out these rooms individually
0:04:37 > 0:04:40and you could be generating who knows what.
0:04:40 > 0:04:42I mean, if you rented them out for
0:04:42 > 0:04:45£50, £60, £70, £80 a week individually,
0:04:45 > 0:04:48this house is going to start delivering some serious returns.
0:04:48 > 0:04:51# Up and down and up and down
0:04:51 > 0:04:54# And up and down and up
0:04:55 > 0:04:56# And down. #
0:05:01 > 0:05:05And there's even more potential for renting back on the ground floor.
0:05:05 > 0:05:07When you come out of the rear of the property,
0:05:07 > 0:05:09you might think it would just end.
0:05:09 > 0:05:13But no, there's this extra space here. And I think this could be
0:05:13 > 0:05:16a little, well, self-contained unit in its own right.
0:05:16 > 0:05:18You've got a kitchen area there, a loo,
0:05:18 > 0:05:21this slightly odd area here with these huge, great windows.
0:05:21 > 0:05:24And then, at the back, look at the size of this!
0:05:24 > 0:05:27Absolutely massive, massive room.
0:05:27 > 0:05:29Certainly enough space in here to create a bedroom
0:05:29 > 0:05:31and a separate living area,
0:05:31 > 0:05:33as a bonus on top of everything else you've got.
0:05:33 > 0:05:34How absolutely fantastic.
0:05:34 > 0:05:39And here, some real, absolutely classic decorating touches.
0:05:39 > 0:05:42We like the louvered doors. And how about this?
0:05:44 > 0:05:46- HE EXHALES - Rocks.
0:05:48 > 0:05:51Or...not quite rocks.
0:05:51 > 0:05:52Got to keep that.
0:05:52 > 0:05:55# Get your rocks off Get your rocks off, honey
0:05:55 > 0:05:57# Shake 'em now, now. #
0:05:57 > 0:06:00Moving on from my fascination with the decor,
0:06:00 > 0:06:03outside it is a practical low-maintenance space
0:06:03 > 0:06:07with the cherry on top being a good-sized garage, which again
0:06:07 > 0:06:12has multiple uses - from parking a car to storage or even a workshop.
0:06:12 > 0:06:14I reckon this is a no-brainer
0:06:14 > 0:06:17as far as a house of multiple occupancy is concerned,
0:06:17 > 0:06:21but is there a market for this type of rented accommodation,
0:06:21 > 0:06:23and what about other options?
0:06:23 > 0:06:26We asked the auctioneer who sold it what potential he saw
0:06:26 > 0:06:29for this amazing eight-bedroomed house,
0:06:29 > 0:06:33guided at an equally amazing £110,000.
0:06:33 > 0:06:35It's a very, very large house
0:06:35 > 0:06:36to turn into a family home.
0:06:36 > 0:06:41I'm not so sure there's a trade here for a bed and breakfast/small hotel,
0:06:41 > 0:06:46but there is a large demand for the letting of single rooms.
0:06:46 > 0:06:49And if it was done to a high standard
0:06:49 > 0:06:53and if you managed to get en suites in the individual letting rooms,
0:06:53 > 0:06:56then I think it could command quite a decent rent.
0:06:56 > 0:07:00Much of that demand comes from the nearby power station
0:07:00 > 0:07:02that is the main local employer.
0:07:04 > 0:07:08So, what would need to be done and how much income could it bring?
0:07:08 > 0:07:12If it was done to a good standard, good en suite facilities,
0:07:12 > 0:07:15I think you would achieve around £80,
0:07:15 > 0:07:19maybe to £85 per week for each room.
0:07:19 > 0:07:25I think if the buyer managed to create maybe a one-bedroom apartment
0:07:25 > 0:07:27on the ground floor offshoot,
0:07:27 > 0:07:31I think you would probably get in the region of £300 per calendar month.
0:07:31 > 0:07:35Well, with eight bedrooms and maybe two of the public rooms rented
0:07:35 > 0:07:41at £80 per week, that would be £3,200 a month.
0:07:42 > 0:07:47And then add on £300 per month for the flat, and that's £3,500.
0:07:47 > 0:07:51Wow! £42,000 a year!
0:07:51 > 0:07:55Well, it's an absolutely massive property that I think
0:07:55 > 0:07:59could potentially return somebody a massive amount of money
0:07:59 > 0:08:01if they get it right.
0:08:01 > 0:08:03Let's see who decided to take this place on
0:08:03 > 0:08:05when it went under the hammer.
0:08:08 > 0:08:12Spacious, detached property. Massive property, this.
0:08:12 > 0:08:15£100,000 plus, then, is the last quoted guide.
0:08:15 > 0:08:17Got a telephone bid on this already in.
0:08:17 > 0:08:19Who is here for this at 100?
0:08:20 > 0:08:2295, then.
0:08:22 > 0:08:2390, get me started.
0:08:23 > 0:08:27At £90,000, anybody here? 90 I've got on the door.
0:08:27 > 0:08:29At £90,000 then.
0:08:29 > 0:08:3191 here. 92.
0:08:31 > 0:08:3693, 94, 95, 96...
0:08:36 > 0:08:40And with the bidding going up in £1,000 increments,
0:08:40 > 0:08:44we eventually reach £130,000.
0:08:44 > 0:08:46130, 131,
0:08:46 > 0:08:49132, 133,
0:08:49 > 0:08:51134, 135,
0:08:51 > 0:08:53136.
0:08:53 > 0:08:55Shake of the head at 136.
0:08:55 > 0:08:57With you, sir, at 135.
0:08:57 > 0:09:01At £135,000 for the first time.
0:09:02 > 0:09:05At £135,000 for the second time.
0:09:05 > 0:09:08£135,000, third and final time.
0:09:08 > 0:09:11All done, all out. Selling away.
0:09:11 > 0:09:14To you, sir. Thank you. Well done.
0:09:14 > 0:09:18And the successful bidder is Peter, who along with his daughter, Sienna,
0:09:18 > 0:09:23met me back at the property to outline his plans.
0:09:23 > 0:09:26- Peter, good to meet you.- And you. - Congratulations.- Thank you.
0:09:26 > 0:09:29- Yeah. Big house. - Yes, it's substantial.
0:09:29 > 0:09:31- MARTIN CHUCKLES - So, why did you want to buy it?
0:09:31 > 0:09:34Well, I've just bought a house with my partner in Gosforth
0:09:34 > 0:09:36and we saw this come up and decided
0:09:36 > 0:09:38it was an opportunity too good to miss
0:09:38 > 0:09:40because of the number of rooms
0:09:40 > 0:09:44and the possibility of renting the rooms out to local contractors.
0:09:44 > 0:09:45So, do you know the area
0:09:45 > 0:09:48and the need for that kind of accommodation, then?
0:09:48 > 0:09:50Yes, I've lived up here about nine years now
0:09:50 > 0:09:52and we know a lot of the contractors anyway.
0:09:52 > 0:09:55- Right.- Through meeting in the pub, etc.
0:09:55 > 0:09:59And I know there is a good market for that
0:09:59 > 0:10:02if you price the rooms right and provide the right facilities.
0:10:02 > 0:10:03Right.
0:10:03 > 0:10:06I, in fact, about three years ago, stayed just up the road here
0:10:06 > 0:10:10in an extremely grotty flat for about three months
0:10:10 > 0:10:12and I thought, "This is absolutely awful."
0:10:12 > 0:10:14It was decorated in the 1970s style
0:10:14 > 0:10:16and it looked like that was the last time it was cleaned as well.
0:10:16 > 0:10:18So I thought, "We've got to do better than that."
0:10:18 > 0:10:22To cut to the chase, to rent out individual rooms to people
0:10:22 > 0:10:24for what kind of letting periods?
0:10:24 > 0:10:26Well, generally speaking,
0:10:26 > 0:10:29the Sellafield contractors do it on a weekly basis.
0:10:29 > 0:10:33So, they pay you cash upfront for the week,
0:10:33 > 0:10:36and then they're normally in Monday night to Thursday night
0:10:36 > 0:10:39- and they're away at the weekends. - Right.
0:10:39 > 0:10:42So, for me, that's ideal because then I can come in at the weekends,
0:10:42 > 0:10:45tidy up the rooms, refresh the bedding, that kind of thing.
0:10:45 > 0:10:48I did think about the holiday let kind of thing
0:10:48 > 0:10:53but this side of Cumbria - we're obviously west of the Lakes,
0:10:53 > 0:10:55of Windermere, etc -
0:10:55 > 0:10:59we don't get the tourism here that they do over there.
0:10:59 > 0:11:02- So I wouldn't like to rely on that. - So, tell me a bit more about you.
0:11:02 > 0:11:04Well, I'm a film cameraman.
0:11:04 > 0:11:08- Been in the film business just over 30 years now.- Gosh.
0:11:08 > 0:11:11- Just came back. I was filming for Doctor Who last week.- Oh, wow.
0:11:11 > 0:11:13Not in Cardiff, though.
0:11:13 > 0:11:16So before you ask, we don't get to meet any of the stars at all.
0:11:16 > 0:11:18- You don't?- No. - What were you filming?
0:11:18 > 0:11:21- We were filming some miniatures, special effects stuff...- Oh!
0:11:21 > 0:11:25- ..for next year's season. - Oh, you can't give any secrets away?
0:11:25 > 0:11:27So I can't say anything about it, no.
0:11:27 > 0:11:30Except it was very dusty and very smoky.
0:11:30 > 0:11:31So how do you find time to do this, then?
0:11:31 > 0:11:33For me, this is a very long-term project.
0:11:33 > 0:11:37I'm not going to do it up and then get rid of it.
0:11:37 > 0:11:42It's going to stay with us for the foreseeable future
0:11:42 > 0:11:47as an income for me because my pension is so pathetic.
0:11:48 > 0:11:50And a legacy for my children.
0:11:50 > 0:11:54And it's going to take a couple of years, I think, to come to fruition.
0:11:54 > 0:11:57But I'm going to try and get one or two rooms sorted out
0:11:57 > 0:12:00and get the downstairs presentable and the kitchen sorted
0:12:00 > 0:12:02and get a couple of rooms going.
0:12:02 > 0:12:04And then once that's bringing in a bit of income,
0:12:04 > 0:12:06then I'll start to do other rooms.
0:12:06 > 0:12:09So, tell me what you are going to do in terms of sorting it out.
0:12:09 > 0:12:10This room we're standing in now,
0:12:10 > 0:12:12I'm actually going to keep for myself.
0:12:12 > 0:12:15- Oh, right.- So, it will be a kind of den for me, really.
0:12:15 > 0:12:19The other reception room I'll have as a lounge/dining room,
0:12:19 > 0:12:21plus a dining kitchen.
0:12:22 > 0:12:25And then each bedroom will be en suite.
0:12:25 > 0:12:29- So, I think, ultimately, I'll have eight rooms to rent out.- Right.
0:12:29 > 0:12:33- Plus the flat.- Right.- The flat will be the last thing we do.- OK.
0:12:33 > 0:12:37Cos that needs more work doing to it, really.
0:12:37 > 0:12:39Peter's clearly taking it in stages
0:12:39 > 0:12:42as and when he has the time and money.
0:12:42 > 0:12:45So how much does he envisage spending?
0:12:45 > 0:12:50- £2,000 per room to decorate and put the en suite in.- Right.
0:12:50 > 0:12:52- I'll be doing most of the work myself.- Right.
0:12:52 > 0:12:56I would say about £25,000 over the next couple of years.
0:12:56 > 0:12:59I'm not in the business of just
0:12:59 > 0:13:02bashing it out and quick lick of paint and that sort of thing.
0:13:02 > 0:13:04So if people like the rooms, if they're comfortable,
0:13:04 > 0:13:08modern, bright and breezy, then they'll come back, won't they?
0:13:08 > 0:13:11- That's my philosophy, anyway.- Well, listen, congratulations.- Thank you.
0:13:11 > 0:13:14- Good luck with it.- Lovely.- Look forward to seeing how you get on.
0:13:14 > 0:13:17- What an interesting project.- Great. Thanks very much. Fingers crossed.
0:13:18 > 0:13:24So, Peter embarking on a fairly ambitious project with this place.
0:13:24 > 0:13:26And lots of work to be done both in sorting it out
0:13:26 > 0:13:30and then running it as the business he is proposing.
0:13:30 > 0:13:32Is he ready for all the work that's involved?
0:13:32 > 0:13:34You can find out later in the show.
0:13:38 > 0:13:43# We are the Village Green Preservation Society. #
0:13:43 > 0:13:46I'm in Kent, only three miles from Maidstone.
0:13:47 > 0:13:49This lovely village is Bearsted,
0:13:49 > 0:13:53but the property I'm seeing today is a little newer than these.
0:13:53 > 0:13:57Well, I'm here to see a 1930s house today.
0:13:57 > 0:14:00It's down this lovely leafy, lush, green lane
0:14:00 > 0:14:03and it's a three-bed semi and the guide price -
0:14:03 > 0:14:08£240,000 to £245,000.
0:14:08 > 0:14:11It's here, but what I'm loving is the frontage.
0:14:11 > 0:14:15Gosh, how many cars could you park on here, I wonder?
0:14:15 > 0:14:16I'm going to have a look inside.
0:14:19 > 0:14:23I do love these '30s houses. They make fabulous family homes.
0:14:23 > 0:14:26I don't know what it is, but in here, it makes me feel
0:14:26 > 0:14:28like I've just come back from the pub.
0:14:28 > 0:14:32Now, when I say that, it's because the house sort of slopes this way.
0:14:32 > 0:14:33It goes like that.
0:14:33 > 0:14:36And a dead giveaway is, well, look at this.
0:14:36 > 0:14:39The doorframe sloping down there.
0:14:39 > 0:14:42In front of me, it's also sloping down there.
0:14:42 > 0:14:46So, I think this house may have moved over the last few years,
0:14:46 > 0:14:50so that's something that whoever takes this on has got to check out.
0:14:50 > 0:14:54So, nice-sized living room. Great space. Lovely, big bay window.
0:14:54 > 0:14:57Second reception room. Nice and sunny.
0:14:57 > 0:15:00Through to the kitchen, which, well, a little bit on the narrow side.
0:15:00 > 0:15:02Slightly disappointing.
0:15:02 > 0:15:05Look at these amazing cupboards, though.
0:15:05 > 0:15:07You'd pay a fortune for something like that
0:15:07 > 0:15:10in an old antiques shop now. Fabulous.
0:15:10 > 0:15:13I would like to knock through here and just extend the space,
0:15:13 > 0:15:17maybe have this as a kitchen/diner next door.
0:15:17 > 0:15:20But it's out there that's really exciting me.
0:15:21 > 0:15:22Wow!
0:15:23 > 0:15:28Well, on a day like today, everybody wants a garden like this.
0:15:28 > 0:15:31In fact, everybody wants a garden like this!
0:15:31 > 0:15:34Now, I know that this is just over 50 foot this way.
0:15:34 > 0:15:36And I got my tape measure out this morning,
0:15:36 > 0:15:40and it's just over 40 foot this way.
0:15:40 > 0:15:44Now, the interesting thing is, this house currently sits on
0:15:44 > 0:15:47less than half the width of this plot,
0:15:47 > 0:15:50leaving all of this space here.
0:15:50 > 0:15:56Now, I know the auction catalogue hints at a potential development,
0:15:56 > 0:15:59maybe a separate dwelling could be built here completely.
0:15:59 > 0:16:01Who knows? That would all be down to the planners.
0:16:01 > 0:16:04But I think the great thing with this property is
0:16:04 > 0:16:06there's just so much potential.
0:16:06 > 0:16:08You could extend, you could build,
0:16:08 > 0:16:10or you could just have a jolly nice garden.
0:16:12 > 0:16:16# There's a lot of opportunities. #
0:16:16 > 0:16:19Hang on. Before I start planning all the possibilities
0:16:19 > 0:16:21of what could be built,
0:16:21 > 0:16:25I should probably first see what else there already is here.
0:16:25 > 0:16:27So, upstairs we've got three bedrooms.
0:16:27 > 0:16:29This is something rather interesting.
0:16:29 > 0:16:31If you have a little look out that window,
0:16:31 > 0:16:34you can actually see the rest of the space you've got
0:16:34 > 0:16:35to the side of the property.
0:16:35 > 0:16:38I know I keep banging on about that, but this is such an amazing plot
0:16:38 > 0:16:41that it excites me no end, this house.
0:16:41 > 0:16:45So upstairs, that's where it gets a little bit disappointing.
0:16:45 > 0:16:50You've got a very small bedroom here, a not bad double-size here,
0:16:50 > 0:16:53a fantastic family bedroom in here.
0:16:53 > 0:16:56But a really small bathroom. I mean, look.
0:16:56 > 0:16:58There is just enough room for a bath and a sink
0:16:58 > 0:17:00and you've got a loo here.
0:17:00 > 0:17:02So, how can we get around that?
0:17:02 > 0:17:05Well, straight away, I would put a wall up here with a doorway
0:17:05 > 0:17:10and open this all up so you've got one combined loo and bathroom,
0:17:10 > 0:17:11and that solves your problem.
0:17:11 > 0:17:14# Problem solved. #
0:17:14 > 0:17:18There certainly are lots of options for this 1930s house,
0:17:18 > 0:17:20so what does the local estate agent make of it all?
0:17:20 > 0:17:24The thing that sells 1930s houses, generally, is it was during
0:17:24 > 0:17:28a period of construction that was very substantial,
0:17:28 > 0:17:30very good quality
0:17:30 > 0:17:32and still retained a lot of character.
0:17:32 > 0:17:35The only concern that was immediately apparent
0:17:35 > 0:17:38was the sloping floor as you enter the hallway.
0:17:38 > 0:17:40It's not difficult to spot.
0:17:40 > 0:17:45So, that's certainly worth checking out and investigating.
0:17:45 > 0:17:48So, if the house gets just a freshen up and a refurbishment,
0:17:48 > 0:17:50what would it be worth then?
0:17:50 > 0:17:54I would anticipate it selling for about £350,000
0:17:54 > 0:17:58and to rent, perhaps £1,300 per calendar month.
0:17:59 > 0:18:03So, good potential profit and also the simplest option.
0:18:04 > 0:18:06But with that extra land to the side,
0:18:06 > 0:18:08what does he think the best option would be?
0:18:08 > 0:18:10I think that lends itself to either
0:18:10 > 0:18:13a very substantial double-storey extension
0:18:13 > 0:18:16or maybe they might even be able to squeeze
0:18:16 > 0:18:19a small detached property in the space.
0:18:19 > 0:18:22And how would that affect the income potential?
0:18:22 > 0:18:25If the property were extended on the side,
0:18:25 > 0:18:27perhaps a big double-storey extension
0:18:27 > 0:18:29providing, say, two additional bedrooms,
0:18:29 > 0:18:33another reception room, an extended kitchen,
0:18:33 > 0:18:38that would allow the owner, I think, to exploit the value to the extent
0:18:38 > 0:18:43of perhaps £425,000, maybe £450,000
0:18:43 > 0:18:47if it's done very well and it is big.
0:18:47 > 0:18:48That's the key.
0:18:50 > 0:18:53That's good news if selling, but a bigger house in this area
0:18:53 > 0:18:56would probably only increase the rental income
0:18:56 > 0:18:59by a few hundred pounds, hardly worth the effort.
0:18:59 > 0:19:02Which leaves us with the final and most exciting option -
0:19:02 > 0:19:05building an additional house to the side.
0:19:05 > 0:19:08The value of the original building would obviously suffer,
0:19:08 > 0:19:10but how much could both properties sell for?
0:19:12 > 0:19:15You could be achieving £300,000 for the original house,
0:19:15 > 0:19:18plus £300,000 for the new house.
0:19:18 > 0:19:21From a rental prospective, again, you could simply
0:19:21 > 0:19:24double the anticipated value of the original house,
0:19:24 > 0:19:27so you've got two times £1,300.
0:19:27 > 0:19:32That's £2,600 per calendar month for the combined project.
0:19:32 > 0:19:35Wow. Now, that is an impressive return.
0:19:35 > 0:19:37Though, that is a bigger building project
0:19:37 > 0:19:39and your costs would go up, too.
0:19:41 > 0:19:43Can you guess? I've really warmed to this solid family home.
0:19:43 > 0:19:46Now, it does have a little bit of a slope
0:19:46 > 0:19:48that certainly needs looking into.
0:19:48 > 0:19:52But in capable hands, with the potential of a whole new house,
0:19:52 > 0:19:54well, there's a lot going for this.
0:19:54 > 0:19:57Let's see who wanted to take it on when it went under the hammer.
0:19:57 > 0:19:59What can we say? It is an attractive,
0:19:59 > 0:20:00semi-detached house.
0:20:00 > 0:20:03Bay-fronted, just the sort of thing everybody loves.
0:20:03 > 0:20:05230 to start me.
0:20:05 > 0:20:07230, I'm on the way at the back. 230.
0:20:07 > 0:20:09230. And five now.
0:20:09 > 0:20:12The original guide price of £240,000,
0:20:12 > 0:20:16not surprisingly, became ancient history rather quickly.
0:20:16 > 0:20:20We rejoin the bidding at £300,000.
0:20:20 > 0:20:22300,000, and two.
0:20:23 > 0:20:25302, 302.
0:20:25 > 0:20:28And five, 305,000.
0:20:28 > 0:20:30At 305, and eight.
0:20:30 > 0:20:31It's a shake of the head. Have a think.
0:20:31 > 0:20:35At £305,000.
0:20:35 > 0:20:37308, I'm looking for.
0:20:37 > 0:20:40Otherwise, for the first time then, at £305,000.
0:20:40 > 0:20:42308.
0:20:42 > 0:20:44And 10.
0:20:44 > 0:20:47He was slow. 310. That's a shake of the head.
0:20:47 > 0:20:50At 308, it's back with you in the front for the first time.
0:20:50 > 0:20:53At 308 for the second.
0:20:54 > 0:20:56Third and final time. If you're sure you're out.
0:20:56 > 0:20:58308, third and final time.
0:20:58 > 0:21:00Well done, sir, for £308,000.
0:21:02 > 0:21:04That final bid was made by Chris,
0:21:04 > 0:21:07managing director of a financial services company
0:21:07 > 0:21:09with a small but growing portfolio of property.
0:21:11 > 0:21:14Chris, lovely to meet you today. Congratulations.
0:21:14 > 0:21:17- Thank you, yes.- So, why did you want to buy this property?
0:21:17 > 0:21:21It was simply a case of, "Ooh, that's got some potential.
0:21:21 > 0:21:22"Maybe we can do something with it."
0:21:22 > 0:21:25Was it the fact that it's on a fantastic plot?
0:21:25 > 0:21:26Yeah, that's precisely it.
0:21:26 > 0:21:29You've got some land along the side of the house
0:21:29 > 0:21:33which may be able to be developed in some way, shape or form.
0:21:33 > 0:21:37That bit of land at the side of the building
0:21:37 > 0:21:39seems to have caught everyone's eye, then.
0:21:39 > 0:21:42And Chris has certainly thought through all the options.
0:21:42 > 0:21:46My preference would be to have a detached property, if there's room.
0:21:46 > 0:21:48If not, then attach it to this.
0:21:48 > 0:21:51Meanwhile, because all this takes time,
0:21:51 > 0:21:53what are you going to do with the building?
0:21:53 > 0:21:55Spend a little bit of money on it, tidy it all up,
0:21:55 > 0:21:57get it nice for somebody to live in
0:21:57 > 0:22:00and then just rent it out on a short-term let.
0:22:00 > 0:22:02The budget is relatively small for that.
0:22:02 > 0:22:06£7,000 should do the kitchen, do something in the bathroom,
0:22:06 > 0:22:09decorate, paint, freshen it up.
0:22:09 > 0:22:11So that's what allows me to say, "OK,
0:22:11 > 0:22:13"now I can wait and see what happens."
0:22:13 > 0:22:16So how long is it going to take you to do your first initial
0:22:16 > 0:22:19get this place ready for rental?
0:22:19 > 0:22:20A month. That's the plan.
0:22:20 > 0:22:24One month from completion to getting somebody in here.
0:22:24 > 0:22:27Now, you strike me as a man that makes things happen. Am I right?
0:22:27 > 0:22:28It will happen.
0:22:28 > 0:22:31There will be someone in here in a month. I can guarantee that.
0:22:31 > 0:22:33There will be someone in here in a month.
0:22:33 > 0:22:35- How can you guarantee that? - I can't.
0:22:35 > 0:22:37- You're just saying that?- Confidence.
0:22:37 > 0:22:41# Cos I'm a confidence man. #
0:22:42 > 0:22:44Well, Chris has every right to be confident.
0:22:44 > 0:22:47With the short-term rental keeping the money rolling in,
0:22:47 > 0:22:50he has time to explore the many options
0:22:50 > 0:22:53that make this house an extremely attractive proposition.
0:22:53 > 0:22:55Let me talk about what's not attractive.
0:22:55 > 0:22:58Well, it's not not attractive, but it's worrying me slightly -
0:22:58 > 0:22:59is the slope.
0:22:59 > 0:23:03I had somebody...I had a surveyor look at it.
0:23:03 > 0:23:06They genuinely believe that that's historic.
0:23:06 > 0:23:09Well, that is good news and I'm glad he's had it checked out.
0:23:11 > 0:23:13Chris would prefer to build a self-contained detached property
0:23:13 > 0:23:15on that side plot.
0:23:15 > 0:23:19He could, of course, just extend the current house and make it bigger
0:23:19 > 0:23:24or he could attach a house to the semi, creating a terrace of three.
0:23:24 > 0:23:26It's all down to planning, of course,
0:23:26 > 0:23:29but the possibilities seem endless.
0:23:29 > 0:23:31I want to know what I'm going to see when I come back.
0:23:31 > 0:23:32- Ah, well.- And I don't know.
0:23:32 > 0:23:34We've got A, B, C, D, E and F.
0:23:34 > 0:23:38What we can expect is this property will be lovely
0:23:38 > 0:23:41and we'll have a detached property alongside.
0:23:44 > 0:23:47Well, Chris is a money man, not a builder,
0:23:47 > 0:23:51so he's enlisted some special help for this project.
0:23:51 > 0:23:53One of the builders that have done some work
0:23:53 > 0:23:57on some of the other properties, excellent guy. Elvis, his name.
0:23:57 > 0:24:02And what we've done is I've said, "OK, if I buy this property,
0:24:02 > 0:24:06"you do the development and we'll share some of the spoils."
0:24:06 > 0:24:08- So, Elvis is your new best friend. - He is.
0:24:08 > 0:24:10# I can help
0:24:10 > 0:24:13# I got two strong arms and I can help. #
0:24:13 > 0:24:16Oh, yes, Elvis has entered the building.
0:24:16 > 0:24:19This property has so much potential.
0:24:19 > 0:24:23I can't wait to see what Chris and Elvis come up with.
0:24:23 > 0:24:24I love it that
0:24:24 > 0:24:27Chris saw this as a good opportunity
0:24:27 > 0:24:29and he just snapped it up on auction day.
0:24:29 > 0:24:33So, will he get permission to build a house here?
0:24:33 > 0:24:35Or will we see a row of terraces?
0:24:35 > 0:24:37Or just lick of paint and a tidy up?
0:24:37 > 0:24:39You can join me later on in the programme
0:24:39 > 0:24:41so we can check how Chris has got on.
0:24:44 > 0:24:48Coming up, in Lancashire, a new owner plans to work some magic.
0:24:48 > 0:24:50Name a card. Name any card you want.
0:24:51 > 0:24:54And in Kent, the long list of options grows.
0:24:54 > 0:24:57The architects, they've come up with a completely different idea.
0:25:00 > 0:25:03We move back to the northwest of England now
0:25:03 > 0:25:05and the town of Seascale, on the Cumbrian coast,
0:25:05 > 0:25:10where earlier we viewed this large, eight-bedroomed, Edwardian villa.
0:25:10 > 0:25:13Really nice. Nice, nice, nice. Gosh.
0:25:13 > 0:25:17Not only eight bedrooms, but four reception rooms
0:25:17 > 0:25:20and the large rear area just begging to be a flat.
0:25:20 > 0:25:25It was bought for £135,000 by Peter, a freelance cameraman,
0:25:25 > 0:25:27who came back with daughter Sienna
0:25:27 > 0:25:30to tell us about his vision for this property.
0:25:30 > 0:25:32It was an opportunity too good to miss
0:25:32 > 0:25:33because of the number of rooms
0:25:33 > 0:25:38and the possibility of renting the rooms out to local contractors.
0:25:38 > 0:25:41Peter had spotted real potential in the local market here
0:25:41 > 0:25:43for a house of multiple occupancy,
0:25:43 > 0:25:47with a local power station offering a possible source of tenants
0:25:47 > 0:25:51looking to rent on weekdays while working away from home.
0:25:51 > 0:25:55And he reckoned on spending £2,000 on each unit for rent
0:25:55 > 0:25:57but with a top spend of £25,000,
0:25:57 > 0:26:00and he was taking a long view on the timescale.
0:26:00 > 0:26:04It's going to take a couple of years, I think, to come to fruition.
0:26:04 > 0:26:07It seemed like two years on was a good time to return,
0:26:07 > 0:26:09so has the project come to fruition?
0:26:25 > 0:26:28Peter's plan involved financing each stage of renovation
0:26:28 > 0:26:31by renting out each room as and when completed.
0:26:31 > 0:26:33So, where is he with that?
0:26:33 > 0:26:36We are two years down the line with one room rented out
0:26:36 > 0:26:38and one just about to start.
0:26:38 > 0:26:41I'm very pleased with the way this room has turned out.
0:26:41 > 0:26:44I think we chose a good colour. It's quite restful.
0:26:44 > 0:26:47Restored the fireplace. It's made of cast iron.
0:26:47 > 0:26:49And the en suite worked out very well.
0:26:49 > 0:26:53I managed to cram in a shower and WC and basin.
0:26:53 > 0:26:57It took me ages to design that, cos it was a very tight space,
0:26:57 > 0:26:59and get all the plumbing in.
0:26:59 > 0:27:02Two years on, the rest of the property is a building site
0:27:02 > 0:27:04because he has uncovered what can only be described
0:27:04 > 0:27:07as a catalogue of household horrors.
0:27:09 > 0:27:12We thought we'd get one entire floor done in the space of 12 months,
0:27:12 > 0:27:15which I didn't think was particularly ambitious.
0:27:15 > 0:27:18But the plumbing was in a terrible state.
0:27:18 > 0:27:21The hot water tank had been leaking for years.
0:27:21 > 0:27:24When I rolled the carpet back, it was black with mould.
0:27:24 > 0:27:27So that had to come out as well
0:27:27 > 0:27:30so I had to do the entire plumbing system again.
0:27:30 > 0:27:33And it was quite a monstrous plumbing job.
0:27:33 > 0:27:37I managed to get the pipework inside the lath-and-plaster wall there.
0:27:37 > 0:27:40If you look down here,
0:27:40 > 0:27:44you can see there's the mains supply to the tank.
0:27:44 > 0:27:47That's the vent and the hot supply to the top floor
0:27:47 > 0:27:49and that's the cold from the tank.
0:27:49 > 0:27:51A few floorboards had already been taken up
0:27:51 > 0:27:54but I had to remove quite a few more
0:27:54 > 0:27:57and I'm very careful when I remove old floorboards
0:27:57 > 0:28:00because you can't get these sizes anymore.
0:28:00 > 0:28:02And obviously, in an old place like this,
0:28:02 > 0:28:07you can't just go out to a DIY store and buy something off the shelf
0:28:07 > 0:28:10because things like the door surrounds, the architrave,
0:28:10 > 0:28:12are no longer available in that size.
0:28:12 > 0:28:14And if all that sounds like a nightmare,
0:28:14 > 0:28:17you haven't heard about the electrics yet.
0:28:17 > 0:28:22Once I got in, I started taking up floorboards and discovered
0:28:22 > 0:28:27that the electrical work was put in by a cowboy, let's say.
0:28:27 > 0:28:29Instead of a ring main on each floor,
0:28:29 > 0:28:32it was spurred out from a single source, so it was quite dangerous.
0:28:32 > 0:28:35The worst part of it was the lighting circuit,
0:28:35 > 0:28:38which was the original 1920s lead-wrapped wire,
0:28:38 > 0:28:41which uses the lead wrapping as the earth
0:28:41 > 0:28:43and the junction boxes that that was going into
0:28:43 > 0:28:46were showing signs of burning already.
0:28:46 > 0:28:49So it wouldn't have been long before a fire had started.
0:28:49 > 0:28:54So I decided just to take all the electrical circuits out
0:28:54 > 0:28:56and start from scratch.
0:28:58 > 0:29:00Peter has done a lot of the work
0:29:00 > 0:29:02but has got professionals in when needed.
0:29:02 > 0:29:06There are no aspects of property that should be treated casually -
0:29:06 > 0:29:10electrical, gas and plumbing installations in particular.
0:29:10 > 0:29:14But Peter will get all his electrical work certified.
0:29:14 > 0:29:18So, one room down, many more to go. What is the plan?
0:29:18 > 0:29:23To fully complete the house I would say would be five years in total
0:29:23 > 0:29:26from purchase, so another three years.
0:29:26 > 0:29:28With all this refurbishment still going on,
0:29:28 > 0:29:32how does this affect the one tenant now in residence?
0:29:32 > 0:29:35Our current tenant is very tolerant, I think.
0:29:35 > 0:29:38We cleaned up the hallway, we wiped the walls, all the dust and dirt,
0:29:38 > 0:29:40and we cleaned up the kitchen as best we could,
0:29:40 > 0:29:42put in a little cooker and a fridge.
0:29:42 > 0:29:46The main problem is, as we get more rooms finished,
0:29:46 > 0:29:50there's less room to have all my tools lying about and, of course.
0:29:50 > 0:29:52At the end of the day, I have to tidy the everything away
0:29:52 > 0:29:55cos I can't leave floorboards up and tools lying out
0:29:55 > 0:29:58when there's someone coming in to sleep at the end of the day.
0:29:58 > 0:30:01With the unforeseen costs of rewiring and replumbing,
0:30:01 > 0:30:04how is Peter's original budget holding up?
0:30:04 > 0:30:08Initially, I reckoned £25,000 would do it from top to bottom,
0:30:08 > 0:30:11with a lot of the work being done by myself and my partner.
0:30:11 > 0:30:17At this stage, I'd say we're about £7,000 in at the moment.
0:30:17 > 0:30:18So I think we'll do it.
0:30:18 > 0:30:20On that note of optimism,
0:30:20 > 0:30:25how wise an investment has Peter's £142,000 been so far?
0:30:26 > 0:30:27To find out,
0:30:27 > 0:30:30we invited along two local property agents to have a look.
0:30:31 > 0:30:34The demand for a house of this size for purchase
0:30:34 > 0:30:35is actually quite limited.
0:30:35 > 0:30:38In this instance, the owner is doing the right thing -
0:30:38 > 0:30:40subdividing the property for multiple occupancy.
0:30:40 > 0:30:44This is ideally suited to that and therefore should go really well.
0:30:44 > 0:30:47The current market is quite active at this moment in time
0:30:47 > 0:30:49with a lot of changes
0:30:49 > 0:30:51happening to the rental income,
0:30:51 > 0:30:54where we've got a lot of contractors coming through.
0:30:54 > 0:30:57But at the same time, a lot of families moving into the area.
0:30:57 > 0:31:01Although Peter is looking at this property as a long-term project,
0:31:01 > 0:31:03what figure do the agents think could be attained
0:31:03 > 0:31:06if it was put back on the resale market?
0:31:06 > 0:31:09If the house is put back onto the market in the current state,
0:31:09 > 0:31:11then I would anticipate that it would receive
0:31:11 > 0:31:14£150,000 to £160,000.
0:31:14 > 0:31:16I would anticipate that we'd achieve
0:31:16 > 0:31:19somewhere around £200,000 for it currently.
0:31:19 > 0:31:22As the property stands, that is a potential profit
0:31:22 > 0:31:27before tax and expenses of between eight and £58,000.
0:31:27 > 0:31:32Those figures are very reassuring because, obviously, if I had
0:31:32 > 0:31:35any terrible financial problems, then it would mean that
0:31:35 > 0:31:37I wouldn't lose out,
0:31:37 > 0:31:39certainly wouldn't lose out on my original investment.
0:31:39 > 0:31:43But as Peter's intention has always been to create an HMO,
0:31:43 > 0:31:45what would the rental figures be?
0:31:45 > 0:31:47Well, the most important thing for these rooms
0:31:47 > 0:31:51is that they have their own sanitary facilities - they do -
0:31:51 > 0:31:54and on that basis, they should be going for £85 per week.
0:31:54 > 0:31:58I would anticipate that they would be able to get £80 per week.
0:31:58 > 0:32:01I'm actually getting slightly more than that at the moment.
0:32:01 > 0:32:04These figures multiplied by eight would give Peter
0:32:04 > 0:32:06a whopping yield of approximately 20%,
0:32:06 > 0:32:09so financially, a bright, long-term future
0:32:09 > 0:32:12would appear to be on the cards.
0:32:12 > 0:32:15But which Peter be tempted to repeat the experience?
0:32:15 > 0:32:17This is pretty much a one-off, I think.
0:32:18 > 0:32:21I would like to retire sooner rather than later.
0:32:21 > 0:32:25And the thought of doing DIY and building work
0:32:25 > 0:32:27for the rest of my life is not really...
0:32:27 > 0:32:29not something I'm going to go for.
0:32:34 > 0:32:37This is the market town of Chorley in Lancashire.
0:32:37 > 0:32:40You can still see remnants of the town's cotton past
0:32:40 > 0:32:42in some of the buildings.
0:32:42 > 0:32:46But nowadays, it's a popular place for commuters to settle.
0:32:46 > 0:32:48So, five minutes from the town centre,
0:32:48 > 0:32:50ten minutes from the train station,
0:32:50 > 0:32:54right by the edge of a bit of green stuff.
0:32:54 > 0:32:57What is there not to like? £48,000 was the guide price.
0:32:57 > 0:33:00Two-bedroomed terrace.
0:33:00 > 0:33:02Oh, what shall we do? Shall be stay here?
0:33:03 > 0:33:05No. I'll tell you what, let's go inside for a change.
0:33:09 > 0:33:12- HE LAUGHS - Little tease, aren't I?
0:33:12 > 0:33:14Anyway, wow!
0:33:14 > 0:33:17Look at that! Fantastic high ceilings.
0:33:17 > 0:33:20What a lovely surprise when you walk through the front door.
0:33:20 > 0:33:23Little porch area there, which is always nice.
0:33:23 > 0:33:25Stairs up to your bedrooms there.
0:33:25 > 0:33:31And then through into your living accommodation downstairs.
0:33:31 > 0:33:34And wow, a really nice-sized room.
0:33:34 > 0:33:37Obviously been knocked through at some point.
0:33:37 > 0:33:40An interesting sort of square bay window. I don't know if that was...
0:33:40 > 0:33:43Can you have a square bay window? I think you can.
0:33:43 > 0:33:45In fact, I think I'm talking complete rubbish
0:33:45 > 0:33:46at this moment in time.
0:33:46 > 0:33:48Anyway, it's a bay window, a square one, whatever.
0:33:48 > 0:33:51Living room area there.
0:33:51 > 0:33:53Oh, did I get away with that? No, I don't think so.
0:33:53 > 0:33:57Yeah, living area at the front there. A rear living area here.
0:33:57 > 0:34:00Uh, it's all a bit sparse, isn't it?
0:34:02 > 0:34:05Well, at least there's no getting rid of the rubbish to do.
0:34:05 > 0:34:07Just think of the money saved on skips.
0:34:07 > 0:34:10But clearly somebody's already had a go
0:34:10 > 0:34:13at stripping this place right down to the bare bones,
0:34:13 > 0:34:16so it's unlikely there will be any hidden horrors.
0:34:16 > 0:34:18OK, through here, and ha-ha!
0:34:18 > 0:34:21At last, some fittings!
0:34:21 > 0:34:24Yes, we've got some kitchen units. Which is nice.
0:34:24 > 0:34:27Especially in a kitchen, because that's what this is.
0:34:27 > 0:34:29It's obviously the extension built on the rear of the property.
0:34:29 > 0:34:31It actually works.
0:34:31 > 0:34:33A bit of a wiggly-woggly corridor to get to it.
0:34:33 > 0:34:35But apart from that, it's a good-sized space.
0:34:35 > 0:34:38Lots of light coming in from the windows.
0:34:38 > 0:34:42And, yes, a bit of a refurb and it would be great.
0:34:42 > 0:34:45So, all in all, a big tick for the downstairs.
0:34:45 > 0:34:47# Tick, tick, tick, tick, tick, tick, tick, tick, tick, tick. #
0:34:47 > 0:34:51There are further ticks upstairs for this two-bed end-terrace
0:34:51 > 0:34:54because I see no signs of the bathroom down here.
0:34:54 > 0:34:55Phew!
0:34:55 > 0:34:58It's a bit of a hike but when you get up here, what have we got?
0:34:58 > 0:35:02Well, joy of joys, a really nice-sized bathroom,
0:35:02 > 0:35:07obviously in need of some renovation, but that's no biggie.
0:35:07 > 0:35:09A little landing area here, which is pleasant.
0:35:09 > 0:35:11Smaller second bedroom.
0:35:11 > 0:35:15And then through to a really lovely-sized master bedroom.
0:35:15 > 0:35:18Loads of light coming in through the windows.
0:35:18 > 0:35:20Looks a bit wiggly-woggly here in places.
0:35:20 > 0:35:22But in general,
0:35:22 > 0:35:26it's just one of those houses that has a really nice feel to it.
0:35:26 > 0:35:29I can't quite put my finger on why, it just does.
0:35:29 > 0:35:31Let's have a look outside.
0:35:32 > 0:35:36Well, at the back of the property, not exactly an expansive garden.
0:35:36 > 0:35:38Just this walled bit of concrete.
0:35:38 > 0:35:41But actually, with some planters with nice plants,
0:35:41 > 0:35:43maybe some climbers, clematis
0:35:43 > 0:35:45and all sorts of lovely things growing over here,
0:35:45 > 0:35:47it could actually be quite pleasant.
0:35:47 > 0:35:49And certainly, if you're renting this place out,
0:35:49 > 0:35:51this is definitely low maintenance.
0:35:51 > 0:35:55But what I'm more interested in out here is, could you extend?
0:35:55 > 0:35:59Well, you've obviously got that single-storey extension there
0:35:59 > 0:36:01which houses the kitchen.
0:36:01 > 0:36:03That could probably go to a double-storey extension,
0:36:03 > 0:36:06although none of the other properties have done it.
0:36:06 > 0:36:09So given these possibilities, we asked a local agent
0:36:09 > 0:36:14what he thought of this house, guided at £48,000.
0:36:14 > 0:36:16It's really a good property
0:36:16 > 0:36:18for both investment
0:36:18 > 0:36:19and for the rental side of things.
0:36:19 > 0:36:22It looks like the front bay window might need a little bit of work
0:36:22 > 0:36:23doing to it and then it could be
0:36:23 > 0:36:25things internal-wise like plastering,
0:36:25 > 0:36:28and also the roof may need work doing on them in the future.
0:36:28 > 0:36:31As a possibility to make the extension out the back
0:36:31 > 0:36:33a two-storey extension,
0:36:33 > 0:36:35again, that potentially would increase the value.
0:36:35 > 0:36:39Sticking with the same footprint, what does he think this property
0:36:39 > 0:36:41might sell for in the current market?
0:36:41 > 0:36:44This property should achieve about £100,000 in today's sales market,
0:36:44 > 0:36:46fully renovated.
0:36:46 > 0:36:49And given the area's popularity with renters,
0:36:49 > 0:36:52what kind of rental figure can he put on it once it's renovated?
0:36:52 > 0:36:55Rental figures should be between about £550
0:36:55 > 0:36:58to £595 per calendar month.
0:36:58 > 0:36:59And with the extension?
0:36:59 > 0:37:02I think with a two-storey extension out of the back,
0:37:02 > 0:37:07the potential should be between £115,000 and £125,000.
0:37:07 > 0:37:09The rental amount should then be
0:37:09 > 0:37:12approximately £650 per calendar month.
0:37:13 > 0:37:17Well, yes, there's a bit of work to be done to sort this place out,
0:37:17 > 0:37:20but I get a really nice feeling about this house.
0:37:20 > 0:37:22I love the high ceilings, the layout.
0:37:22 > 0:37:26Yeah, location, everything. Really good one to go for.
0:37:26 > 0:37:28Let's see who agreed when it went under the hammer.
0:37:33 > 0:37:36Lot 143, what shall we say for this?
0:37:36 > 0:37:38Start me at 45 on it.
0:37:38 > 0:37:40Thank you. 45. Bidding.
0:37:40 > 0:37:4246, 47, 48, 49,
0:37:42 > 0:37:4650, 51, 52, 53,
0:37:46 > 0:37:4954, 55, 56.
0:37:49 > 0:37:52With you then at £55,000. You're out, here and here.
0:37:52 > 0:37:55Yours at 55 for the first.
0:37:55 > 0:37:5755 for the second.
0:37:57 > 0:37:5956, 57, 58.
0:37:59 > 0:38:01Buying at 58.
0:38:01 > 0:38:0459, 60, 61.
0:38:04 > 0:38:0562. Yes?
0:38:05 > 0:38:0863. 64.
0:38:09 > 0:38:1265, 66.
0:38:14 > 0:38:17£65,000 and in the room for the first.
0:38:17 > 0:38:2065 for the second.
0:38:20 > 0:38:22Third and final time.
0:38:22 > 0:38:24Bought it at £65,000.
0:38:24 > 0:38:28Sold to a barely visible Paul who pipped the others to the post
0:38:28 > 0:38:30with a bid of £65,000.
0:38:30 > 0:38:34I met Paul and his wife, Nicky, back at the property
0:38:34 > 0:38:36to find out their plans.
0:38:36 > 0:38:38Nicky, Paul, good to meet you both.
0:38:38 > 0:38:39- Nice to meet you.- And you.
0:38:39 > 0:38:41- Congratulations. - Yeah, great.- Thank you.
0:38:41 > 0:38:44- I like this house. - Yeah. It's got potential.
0:38:44 > 0:38:47What was it about it that made you want to buy it?
0:38:47 > 0:38:48Well, it's a good area.
0:38:50 > 0:38:55It's a quiet street, end-terrace, got loads of potential.
0:38:55 > 0:38:57It just came upon the auction.
0:38:57 > 0:38:58We saw on the local sites and we thought,
0:38:58 > 0:39:01"That's a good house. It's selling for the right price."
0:39:01 > 0:39:03So we had a go and ended up getting it.
0:39:03 > 0:39:06- And is this something you do? - Yes. Yeah.
0:39:06 > 0:39:08We have eight properties, don't we? That we do up and...
0:39:08 > 0:39:09- Nine.- Eight or nine.
0:39:09 > 0:39:12- THEY LAUGH - Oh, so easy to lose count, eh?
0:39:12 > 0:39:14Yeah, well, we do this all the time.
0:39:14 > 0:39:16We buy a property, do it up, rent it out.
0:39:16 > 0:39:17Buy another, do it up, rent it out.
0:39:17 > 0:39:19- Right.- We like doing this sort of stuff, yeah.
0:39:19 > 0:39:22Being local makes this a very attractive property,
0:39:22 > 0:39:25that and the fact it is a very popular commuter town,
0:39:25 > 0:39:28with people working in Manchester and Liverpool.
0:39:28 > 0:39:30So, what are their plans?
0:39:30 > 0:39:32- Full revamp, really.- Yeah. - Full revamp.
0:39:32 > 0:39:34New carpets, new windows throughout, outside.
0:39:34 > 0:39:37So, a complete brand-new house by the time it's finished.
0:39:37 > 0:39:38And what about structurally?
0:39:38 > 0:39:41Cos you've got this archway leading between these two rooms.
0:39:41 > 0:39:42- Is that going to stay?- Yeah.
0:39:42 > 0:39:45That'll stay. The layout will pretty much stay as it is.
0:39:45 > 0:39:46It'll just be cosmetic and replastering.
0:39:46 > 0:39:48It'll feel like walking into a brand-new house.
0:39:48 > 0:39:51Structurally, the building's sound, it's square.
0:39:51 > 0:39:54The roof's sound, there's no sags. It's a good, solid, old building.
0:39:54 > 0:39:56And the door in the back of the lounge there,
0:39:56 > 0:39:58it could be so much more, couldn't it?
0:39:58 > 0:40:01There'll be a new door with a brighter and bigger window
0:40:01 > 0:40:02to bring some more light in.
0:40:02 > 0:40:06And then outside, it'll be re-flagged and made nice,
0:40:06 > 0:40:07sparkled up a bit.
0:40:07 > 0:40:09Oh, we're going to make it into three bedrooms as well.
0:40:09 > 0:40:12Oh, you just dropped that into the conversation.
0:40:12 > 0:40:13How are you going to do that?
0:40:13 > 0:40:17The main bedroom, how it's got two windows at the front,
0:40:17 > 0:40:19we're going to divide it there between the two.
0:40:19 > 0:40:21You'll still end with a double bedroom and a single bedroom,
0:40:21 > 0:40:24cos it's a good size. It's too big on its own as one bedroom.
0:40:24 > 0:40:27Well, I mean, it does give a lovely feeling of space, is all I'd say.
0:40:27 > 0:40:29But with a rental, we get a bit more rental
0:40:29 > 0:40:32if it's a three-bedroom property rather than a two-bedroom.
0:40:32 > 0:40:34It's better for a family with a couple of kids.
0:40:34 > 0:40:36- Yeah. - So it should appeal to more people.
0:40:36 > 0:40:38- And not that difficult to do.- No.
0:40:38 > 0:40:40Just a studded wall and change the door around.
0:40:40 > 0:40:42- You'll whip it up, won't you. - Soon get it done.
0:40:42 > 0:40:44So, who's going to do the work?
0:40:44 > 0:40:46Well, I do a lot of work.
0:40:46 > 0:40:49What I can't do, I get trades in and we look after trades.
0:40:49 > 0:40:51You know, the plumbing, I can't do the plumbing.
0:40:51 > 0:40:54I do all the donkey work and then I get the trades in to do their bit.
0:40:54 > 0:40:56Right. And how about you? What's your involvement?
0:40:56 > 0:41:00I do all the sourcing of materials and things like that.
0:41:00 > 0:41:03- That's good. That's important. - All the pretty stuff.
0:41:03 > 0:41:05- Yeah.- Design.- Design.
0:41:05 > 0:41:07What have you found a really good way to get hold of
0:41:07 > 0:41:09good value materials?
0:41:09 > 0:41:12- Just researching, really.- Yeah.
0:41:12 > 0:41:14Prices can change all the time,
0:41:14 > 0:41:16so it's best not to stick with the same supplier
0:41:16 > 0:41:19because they can have a price increase
0:41:19 > 0:41:20and you can get it down the road cheaper,
0:41:20 > 0:41:22- so research every time.- Right.
0:41:22 > 0:41:24Because we're so central in Chorley there's loads of suppliers,
0:41:24 > 0:41:26loads of merchants all around the area.
0:41:26 > 0:41:28Within half an hour, there's each town...
0:41:28 > 0:41:31Each town is half an hour away, they've got different merchants,
0:41:31 > 0:41:33so we've got a wide range of choices.
0:41:33 > 0:41:34What's the budget?
0:41:34 > 0:41:36Between ten and 12. Ten and 12.
0:41:36 > 0:41:39Yeah, roughly. Usually that's what we spend on each property,
0:41:39 > 0:41:41around that figure.
0:41:41 > 0:41:44- And the timescale? - Two to three months.- Yeah.
0:41:44 > 0:41:46- Two to three months. - Three months maximum.
0:41:46 > 0:41:47- Brilliant.- Two months, hopefully.
0:41:47 > 0:41:50We'll get it blitzed as fast as we can.
0:41:50 > 0:41:52So, any other family members involved in this?
0:41:52 > 0:41:55Well, the boys might get a paintbrush out.
0:41:55 > 0:41:58- How old are they?- Six and eight. - What are their names?
0:41:58 > 0:42:00- Harley and Finlay.- Oh, brilliant.
0:42:00 > 0:42:03Are they following in your property developing footsteps, are they?
0:42:03 > 0:42:05- I think they are. - They love getting the scruffs on
0:42:05 > 0:42:08- and doing a bit of painting. - Do they?- Yeah.
0:42:08 > 0:42:11You have repaint again afterwards, but they like having a go.
0:42:11 > 0:42:13When Paul's not property developing,
0:42:13 > 0:42:17he works full-time as a consultant for a civil engineering firm.
0:42:17 > 0:42:20And when he's not doing that, he's a very successful magician.
0:42:20 > 0:42:21# Could it be magic? #
0:42:21 > 0:42:23- What kind of magic to you do? - Oh, close-up.
0:42:23 > 0:42:26Cards, coins, a variety of stuff, really.
0:42:26 > 0:42:28Anything close. I can show you a little trick if you want.
0:42:28 > 0:42:30- Can you?- Yeah.- Yeah, go on then.
0:42:30 > 0:42:32- OK, hold your hand out.- OK.
0:42:32 > 0:42:33- OK, pack of cards.- Yes.
0:42:33 > 0:42:35- This is a first. - This is a first, yeah.
0:42:35 > 0:42:37Name a card. Name any card you want.
0:42:37 > 0:42:38- Queen of hearts.- Queen of hearts.
0:42:38 > 0:42:40- Are you happy with the queen of hearts?- I am.
0:42:40 > 0:42:43- Don't want to change your mind?- I don't.- Watch this. Queen of hearts.
0:42:43 > 0:42:45- You've had that pack the whole time. - Yes.
0:42:45 > 0:42:47Take the cards. Queen of hearts.
0:42:47 > 0:42:49- All the cards completely upside-down.- Yes.
0:42:49 > 0:42:52Every single card in the whole pack is upside-down apart from one card.
0:42:52 > 0:42:54- No!- The queen of hearts.
0:42:54 > 0:42:56MARTIN LAUGHS
0:42:56 > 0:42:58I can do all sorts of things just like that, you know.
0:42:59 > 0:43:01How did you do that? I love it.
0:43:01 > 0:43:03You're going to pull off some magic tricks with this place?
0:43:03 > 0:43:06Well, hopefully, yeah. Get it done quick-sharp.
0:43:06 > 0:43:09Wave the wand and it'll be done. That'd be good, wouldn't it?
0:43:09 > 0:43:10Well, listen, congratulations.
0:43:10 > 0:43:12- Well done.- Thank you.- Thank you.
0:43:12 > 0:43:13Lovely to meet you.
0:43:13 > 0:43:14- Thank you for the magic trick. - No problem.
0:43:14 > 0:43:17MARTIN LAUGHS
0:43:17 > 0:43:18That was brilliant.
0:43:20 > 0:43:24Well, it's a great house. You know what I'm going to say, don't you?
0:43:24 > 0:43:27Will Nicky and Paul manage to work their magic on it?
0:43:27 > 0:43:30- HE SNIGGERS - Nothing if not predictable.
0:43:30 > 0:43:32You can find out later in the show.
0:43:36 > 0:43:39Well, it's been a while now since we saw our properties.
0:43:39 > 0:43:42There should have been lots of work done, but you never know.
0:43:42 > 0:43:43All sorts of problems can arise.
0:43:43 > 0:43:46I wonder how they've been doing. Let's find out.
0:43:50 > 0:43:53We stroll back to sleepy Bearsted, in Kent, now,
0:43:53 > 0:43:55where I earlier met Chris,
0:43:55 > 0:43:58a managing director of a financial services company
0:43:58 > 0:44:01who also had a growing property portfolio.
0:44:02 > 0:44:07He'd added to it this three-bed semi for a price of 308,000.
0:44:08 > 0:44:11Despite its sloping floors and tiny kitchen,
0:44:11 > 0:44:15it did offer a lot of potential, particularly on the outside.
0:44:19 > 0:44:21So, why did you want to buy this property?
0:44:21 > 0:44:25It was simply a case of, "Ooh, that's got some potential.
0:44:25 > 0:44:27"Maybe we can do something with it."
0:44:27 > 0:44:29Was it the fact that it's on a fantastic plot?
0:44:29 > 0:44:31Yeah, that's precisely it.
0:44:31 > 0:44:33You've got some land along the side of the house
0:44:33 > 0:44:38which may be able to be developed in some way, shape or form.
0:44:38 > 0:44:41As long as I've bought the house at the right sort of price
0:44:41 > 0:44:45so that I could let it to cover the cost of the house,
0:44:45 > 0:44:49then I've got plenty of time to devote to having a look
0:44:49 > 0:44:50and see what we can do along the side.
0:44:52 > 0:44:55With the help of his builder, Elvis, Chris was ready to show
0:44:55 > 0:44:59he didn't waste time and gets things done, including finding that tenant.
0:45:03 > 0:45:06One month from completion to getting somebody in here.
0:45:06 > 0:45:09You strike me as a man that makes things happen. Am I right??
0:45:09 > 0:45:12It will happen. There will be someone in here in a month.
0:45:12 > 0:45:15I can guarantee that. There will be someone in here in a month.
0:45:15 > 0:45:18Four weeks later, has Chris kept his promise?
0:45:18 > 0:45:21And has the house been tidied up for a tenant?
0:45:28 > 0:45:32The brand-new kitchen leads out onto the newly-tiled conservatory.
0:45:36 > 0:45:38The two reception rooms have been freshened up
0:45:38 > 0:45:41and neutrally decorated.
0:45:41 > 0:45:43Ideal for Chris's prospective renters.
0:45:46 > 0:45:49The freshening up continues upstairs,
0:45:49 > 0:45:52where the three bedrooms have all been given a lick of paint
0:45:52 > 0:45:54and, as throughout the entire house,
0:45:54 > 0:45:57all the electrics have been checked and updated.
0:46:02 > 0:46:04The bathroom has remained the same for now,
0:46:04 > 0:46:09so it's in the kitchen where the biggest change is evident.
0:46:09 > 0:46:12So, this is the room where we spent the most amount of time,
0:46:12 > 0:46:14most amount of effort and the most amount of money, of course.
0:46:14 > 0:46:18We fitted the new kitchen, new units, everything is new.
0:46:18 > 0:46:20The electrics had to be sorted out, and that's all been done.
0:46:20 > 0:46:23And I'm really pleased. I think it's come out very well, yes.
0:46:23 > 0:46:26This is a quick and simple turnaround for Chris,
0:46:26 > 0:46:29exactly how he wanted it.
0:46:29 > 0:46:32The real project here lies in the space next to the house...
0:46:34 > 0:46:38..where plans for an extra property are coming along nicely.
0:46:40 > 0:46:42We've no planning permission sought yet.
0:46:42 > 0:46:46The architects, strangely enough, they're coming down later on today.
0:46:46 > 0:46:50They've come up with a completely different idea, of course,
0:46:50 > 0:46:51as architects do,
0:46:51 > 0:46:55and they think that I'm better off having a single-storey property
0:46:55 > 0:46:58and perhaps pushing it back into the garden a little bit more
0:46:58 > 0:47:02than where it is, take this bit off of the back of this house
0:47:02 > 0:47:05to give both houses a little bit more space.
0:47:05 > 0:47:08So we're investigating that. Personally, I think
0:47:08 > 0:47:11that we're better off putting a detached house on the side.
0:47:11 > 0:47:13But, you know, that's what architects are for.
0:47:13 > 0:47:14That's what they're going do.
0:47:14 > 0:47:18So they'll be down today to tell us what they think,
0:47:18 > 0:47:20and then we'll take it from there.
0:47:20 > 0:47:22So, we hope to get planning permission in
0:47:22 > 0:47:24over the next two weeks.
0:47:24 > 0:47:28Well, fingers crossed. But is all the work complete here?
0:47:28 > 0:47:29One or two little bits.
0:47:29 > 0:47:32There's a couple of windows that need replacing,
0:47:32 > 0:47:33which we'll do fairly shortly,
0:47:33 > 0:47:35but we've let the property now.
0:47:35 > 0:47:40So people are moving in tomorrow. So there really wasn't the time
0:47:40 > 0:47:45to do that level of work in the house before they wanted to move in.
0:47:45 > 0:47:48So, Chris has kept his promise to get a tenant in a month.
0:47:48 > 0:47:50Has he kept to his budget, too?
0:47:50 > 0:47:53With the initial budget of £7,000,
0:47:53 > 0:47:56of course, there was a little bit of give and take on that.
0:47:56 > 0:47:59I'm quite smug because we've done it for less than £5,000.
0:47:59 > 0:48:02So I'm pleased.
0:48:02 > 0:48:04Yeah, and so he should be, too.
0:48:04 > 0:48:06Chris has done what he set out to do -
0:48:06 > 0:48:09clean up the existing property and get it tenanted fast
0:48:09 > 0:48:12whilst also making preparations for a possible build
0:48:12 > 0:48:14in the neighbouring plot.
0:48:18 > 0:48:21After a total spend of nearly £313,000
0:48:21 > 0:48:25here, it's time to see what two local estate agents make of it,
0:48:25 > 0:48:28starting with the agent who saw it originally.
0:48:30 > 0:48:32I visited the property before
0:48:32 > 0:48:34and it's changed a little bit,
0:48:34 > 0:48:35only a little bit.
0:48:35 > 0:48:38I believe they've done some modifications,
0:48:38 > 0:48:39a bit more decorating
0:48:39 > 0:48:42and I think they fitted a kitchen since I was here last.
0:48:43 > 0:48:46There's always a really big demand for properties
0:48:46 > 0:48:47that can appeal to families.
0:48:47 > 0:48:51It's in a good area, it's in a good catchment area for a local school,
0:48:51 > 0:48:53and they always sell well.
0:48:53 > 0:48:55It's in a nice road as well.
0:48:55 > 0:48:58There is a great demand for this type of property.
0:48:58 > 0:49:03It fits a nice niche where there's probably the biggest
0:49:03 > 0:49:07or second biggest proportion of buyers and tenants.
0:49:07 > 0:49:12That second-time, maybe third-time buyers' market. So, this is perfect.
0:49:14 > 0:49:17Everything points to a sound investment by Chris, then,
0:49:17 > 0:49:19and that's not even taking into account
0:49:19 > 0:49:21his future plans for the plot next door.
0:49:23 > 0:49:26Chris has already got a tenant, but the question is,
0:49:26 > 0:49:29is he getting the market rate?
0:49:29 > 0:49:33They should be able to achieve around £1,000 per calendar month.
0:49:33 > 0:49:35As it stands at the moment, I would anticipate the property
0:49:35 > 0:49:39renting for about £1,100, maybe £1,200 per calendar month.
0:49:40 > 0:49:44Taking that top estimate would mean a possible rental yield
0:49:44 > 0:49:48of around 4.5%, so let's see if Chris and his builder, Elvis,
0:49:48 > 0:49:50are all shook up by this result.
0:49:52 > 0:49:54Rental figures are about where they should be.
0:49:54 > 0:49:561,150 is what we've got.
0:49:57 > 0:50:01So, yeah, I accept there's some improvements to be made to the house
0:50:01 > 0:50:04but £1,150, people move in tomorrow,
0:50:04 > 0:50:07so both the agents have given us exactly where I thought
0:50:07 > 0:50:09we were going to be. So that's good.
0:50:09 > 0:50:11Yeah. Absolutely happy.
0:50:11 > 0:50:14If the King is happy, then I'm happy.
0:50:15 > 0:50:18But what about sale valuations?
0:50:18 > 0:50:22They could expect to achieve around £325,000.
0:50:22 > 0:50:28I think if the owner perhaps attends to some more modern features,
0:50:28 > 0:50:31for example a better quality, more up-to-date bathroom suite
0:50:31 > 0:50:34perhaps combining the toilet and the bathroom into one,
0:50:34 > 0:50:39it is quite possible that they might realise as much as £350,000.
0:50:39 > 0:50:41These might all be on Chris's to-do list,
0:50:41 > 0:50:44but for the moment, as the house stands,
0:50:44 > 0:50:48if that potential valuation of £325,000 was obtained,
0:50:48 > 0:50:53then that would mean a profit of £12,000 minus taxes and fees.
0:50:53 > 0:50:56Not bad for four weeks' work.
0:50:56 > 0:50:58And when it comes to that plan for another house,
0:50:58 > 0:51:01confidence and can do are the watch words.
0:51:02 > 0:51:04All finished, all completed.
0:51:04 > 0:51:06May even be sold 12 months from today.
0:51:06 > 0:51:07That's the flat.
0:51:12 > 0:51:15We now head back to the Lancashire market town of Chorley,
0:51:15 > 0:51:20where earlier I visited this three-bedroomed end-terrace house
0:51:20 > 0:51:22which had a few surprises.
0:51:22 > 0:51:24Wow!
0:51:24 > 0:51:27Look at that! Fantastic high ceilings.
0:51:27 > 0:51:31It was promising. Even the bare walls didn't dampen my spirits.
0:51:31 > 0:51:34Wow. A really nice-sized room.
0:51:34 > 0:51:36Although the kitchen needed a bit of work
0:51:36 > 0:51:40and it had a downstairs bathroom, I was definitely feeling positive.
0:51:40 > 0:51:44So, all in all, a big tick for the downstairs.
0:51:44 > 0:51:45And upstairs was just as good.
0:51:45 > 0:51:50It's just one of those houses that has a really nice feel to it.
0:51:50 > 0:51:53The house was bought at auction for £65,000
0:51:53 > 0:51:55by husband and wife Paul and Nicky,
0:51:55 > 0:51:58who aren't strangers to property developing.
0:51:59 > 0:52:01We have eight properties, don't we? That we do up and...
0:52:01 > 0:52:03- Nine.- Eight or nine.
0:52:03 > 0:52:05- THEY LAUGH - So easy to lose count, eh?
0:52:05 > 0:52:07With Nicky to keep Paul right on the figures,
0:52:07 > 0:52:10they had a £10,000 to £12,000 budget to spend.
0:52:10 > 0:52:12The layout will pretty much stay as it is.
0:52:12 > 0:52:14It'll just be cosmetic and replastering.
0:52:14 > 0:52:16It'll be like walking into a brand-new house.
0:52:16 > 0:52:18Oh, we're going to make it into three bedrooms as well.
0:52:18 > 0:52:21Oh, you just dropped that into the conversation.
0:52:21 > 0:52:26So, did magician Paul have all the right tricks up his sleeve?
0:52:26 > 0:52:29Two months later, we're back to find out.
0:52:33 > 0:52:35# It's a kind of magic
0:52:40 > 0:52:43# It's a kind of magic. #
0:52:50 > 0:52:53Paul and Nicky have certainly conjured up
0:52:53 > 0:52:54a sparkling transformation.
0:52:54 > 0:52:57And those walls are looking so much better for a start.
0:52:57 > 0:53:00We only intended to take off all the wallpaper and reskim everywhere,
0:53:00 > 0:53:03but unfortunately, when we took off the existing wallpaper,
0:53:03 > 0:53:05all the plaster came off as well.
0:53:05 > 0:53:07So we ended up taking the whole plaster back to brickwork
0:53:07 > 0:53:10for the whole downstairs and then we replastered outwards.
0:53:10 > 0:53:11So that was our big...
0:53:11 > 0:53:13That was the only thing we didn't plan on, really.
0:53:13 > 0:53:17The bay window did need looking at. All the windows were rotten, really.
0:53:17 > 0:53:20So we decided to redo the whole house with new windows anyway
0:53:20 > 0:53:22and we've put a brand-new bay window in there.
0:53:22 > 0:53:24So it looks smart now.
0:53:24 > 0:53:27Paul and Nicky have chosen to refurbish
0:53:27 > 0:53:29rather than replace the kitchen.
0:53:30 > 0:53:32# It's a kind of magic... #
0:53:32 > 0:53:35The kitchen itself, when we first saw it, the units were fine.
0:53:36 > 0:53:39# It's a kind of magic Magic, magic. #
0:53:39 > 0:53:42Basically, all we had to do was replaster the whole kitchen,
0:53:42 > 0:53:45new worktops, new sink, new cooker, new flooring
0:53:45 > 0:53:47and repainted it all and brought it back to life.
0:53:47 > 0:53:51The one structural alteration Paul and Nicky intended
0:53:51 > 0:53:54was to create two bedrooms from the large master bedroom.
0:53:54 > 0:53:56The master bedroom before had two windows in it
0:53:56 > 0:53:58and it was a really big room.
0:53:58 > 0:54:00It was too big, really, for one bedroom.
0:54:00 > 0:54:02So we decided to split it and we still were able
0:54:02 > 0:54:04to have a window in each bedroom.
0:54:04 > 0:54:06We've still got a double-sized main bedroom
0:54:06 > 0:54:08and a single bed in the second bedroom.
0:54:08 > 0:54:09So I think it's worth doing.
0:54:09 > 0:54:11It's made it a three-bedroomed house now, so...
0:54:11 > 0:54:14- Added to the value.- Added to the value. Better selling point, yeah.
0:54:18 > 0:54:21This couple have a portfolio of properties
0:54:21 > 0:54:24so they know in a competitive market what tenants want,
0:54:24 > 0:54:27and one must-have is central heating.
0:54:28 > 0:54:31The house before we bought it was owned by a nursery,
0:54:31 > 0:54:33and they only had electric heating round the whole house.
0:54:33 > 0:54:35- For safety, wasn't it? - For safety, yeah.
0:54:35 > 0:54:36And they had no gas.
0:54:36 > 0:54:40The gas disconnected totally, back out to the main even.
0:54:40 > 0:54:43So we've redone the whole central heating around the whole house,
0:54:43 > 0:54:44new gas central heating.
0:54:44 > 0:54:45And we had to get National Grid out
0:54:45 > 0:54:48to give us a brand-new connection from the main road.
0:54:48 > 0:54:51That was certainly an unforeseen issue which Paul had to sort,
0:54:51 > 0:54:55along with organising the different trades and the sequence of the work.
0:54:56 > 0:54:59We've had a good team of people working with us on it.
0:54:59 > 0:55:02We have trades here full-time, constantly every day,
0:55:02 > 0:55:04carrying out all the works for us
0:55:04 > 0:55:06and they all followed on from each other.
0:55:06 > 0:55:08I was just able to... I have a full-time job, but I was able to
0:55:08 > 0:55:12keep popping by at the odd time and at nighttime, make sure it was OK.
0:55:12 > 0:55:15# Teamwork, do it together
0:55:15 > 0:55:18# Teamwork, friends forever. #
0:55:18 > 0:55:22You have to admire Paul for getting on with this while working full-time
0:55:22 > 0:55:25as a consultant in the civil engineering trade
0:55:25 > 0:55:28and managing to meet his two-month timescale.
0:55:28 > 0:55:31But as it wasn't quite as straightforward as he thought,
0:55:31 > 0:55:34I think Paul would have had to pull off quite a magic trick
0:55:34 > 0:55:37to come in on that £10,000 to £12,000 budget.
0:55:37 > 0:55:41We have gone over that. We've spent around 14,000.
0:55:41 > 0:55:44This is mainly due to the fact that
0:55:44 > 0:55:46we've had to replaster every single wall
0:55:46 > 0:55:49and also we had to get gas connected.
0:55:50 > 0:55:53Well, now that everything's been completed,
0:55:53 > 0:55:57what will two local property agents think of the renovations?
0:55:58 > 0:56:00It's my second time inside the property
0:56:00 > 0:56:02and I think they've done a really good job.
0:56:02 > 0:56:04I think the kitchen looks great and the bathroom does as well
0:56:04 > 0:56:06and it's nice and neutral throughout.
0:56:06 > 0:56:10I think it was a great decision to make the property a three-bedroom.
0:56:10 > 0:56:12It will make it a lot more saleable and also rentable,
0:56:12 > 0:56:17and also it's a really good size inside for numerous different people,
0:56:17 > 0:56:21including families or, potentially, first-time buyers.
0:56:21 > 0:56:23I think they've made a good job of the changes.
0:56:23 > 0:56:25They've renovated it to a high standard,
0:56:25 > 0:56:27nice modern kitchen and bathroom.
0:56:27 > 0:56:29So, yeah, it looks good.
0:56:29 > 0:56:31It has now got the three bedrooms.
0:56:31 > 0:56:34It's been done in a nice, clean way,
0:56:34 > 0:56:37but still retaining many of the features,
0:56:37 > 0:56:39with it being a period property.
0:56:41 > 0:56:43With these positive comments,
0:56:43 > 0:56:46what do the agents reckon the rental figures to be
0:56:46 > 0:56:47for this now three-bedroom house?
0:56:47 > 0:56:49I believe on the rental market,
0:56:49 > 0:56:52the property should bring about £550 per calendar month.
0:56:52 > 0:56:55I would expect if they were to put it on the rental market,
0:56:55 > 0:56:58they would achieve £550 per calendar month.
0:56:58 > 0:57:01So, a fairly healthy yield of 8.5%.
0:57:01 > 0:57:03- That's exactly what thought, isn't it?- Yeah.
0:57:03 > 0:57:06Because, like, we do have a couple of houses that we do rent
0:57:06 > 0:57:10so we know what they go for, so £550 was our idea anyway.
0:57:10 > 0:57:13And what about the resale values?
0:57:13 > 0:57:15I'd recommend an initial starting price
0:57:15 > 0:57:18of just under the stamp duty at £125,000.
0:57:18 > 0:57:22I would expect them to get in the region of £120,000.
0:57:22 > 0:57:26- I'm quite happy with them figures. - Yeah. It's about what we expected.
0:57:26 > 0:57:29So, Paul and Nicky are happy with a potential profit
0:57:29 > 0:57:34before tax and expenses of between £41,000 and £46,000.
0:57:34 > 0:57:38Overall, how has this experience been?
0:57:38 > 0:57:39It went according to plan.
0:57:39 > 0:57:42A couple of things we had to redo, such as the plastering.
0:57:42 > 0:57:45But as the house went, it went to plan
0:57:45 > 0:57:46and we're happy with the experience.
0:57:46 > 0:57:49The next project is yet to be found,
0:57:49 > 0:57:51but as soon as we've got a buyer for this,
0:57:51 > 0:57:54we'll be looking for another property,
0:57:54 > 0:57:57either auction or on the market,
0:57:57 > 0:58:00to renovate and either sell or rent out.
0:58:00 > 0:58:05# It's a kind of magic Magic, magic, magic. #
0:58:07 > 0:58:10Well, in the ever-changing world of property,
0:58:10 > 0:58:12there are always new things to learn
0:58:12 > 0:58:14so we'll have more stories for you next time.
0:58:14 > 0:58:17So make sure you join us then for more Homes Under The Hammer.
0:58:17 > 0:58:18- Goodbye.- Goodbye.