0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:06Now, the property market is on the up in certain parts of the country
0:00:06 > 0:00:09and that means that bargains could be harder to find.
0:00:09 > 0:00:11But you're going to have to track them down
0:00:11 > 0:00:13if you want a decent return on your money.
0:00:13 > 0:00:17But there is one place you could probably go...
0:00:17 > 0:00:20You know what I'm going to say, don't you, Lucy?
0:00:20 > 0:00:22- Yup. A property auction.- Bingo.
0:00:48 > 0:00:50People go to auction with a wide range of budgets
0:00:50 > 0:00:52because they're looking to get a good deal.
0:00:52 > 0:00:53Yes, but did they find one?
0:00:53 > 0:00:57Here are the properties that we're featuring on today's show.
0:00:58 > 0:01:00Demolition day on Homes Under The Hammer,
0:01:00 > 0:01:04and, in Devon, it needs big work to avoid big disappointment.
0:01:04 > 0:01:06You have got to be kidding!
0:01:08 > 0:01:12Near Stoke, I've got a quick fix for some lay-out issues.
0:01:12 > 0:01:16Just take it all out. Make it all open-plan. That's what people want.
0:01:16 > 0:01:17Knock it all down.
0:01:18 > 0:01:22And in East Kilbride, the walls already have holes.
0:01:22 > 0:01:23One of them, I quite like.
0:01:23 > 0:01:27Yay, a serving hatch. Everybody loves these. Morning!
0:01:29 > 0:01:32All these properties were bought at auction and we'll find out
0:01:32 > 0:01:34who got them and how much they paid
0:01:34 > 0:01:36when these homes went under the hammer.
0:01:36 > 0:01:37Yours, well done.
0:01:46 > 0:01:52Devon. One of my favourite places. Even on a wild day like this one.
0:01:52 > 0:01:55I'm visiting a hamlet called Hollacombe.
0:01:56 > 0:02:00Well, it may be a very wet and blustery day here in Devon,
0:02:00 > 0:02:02but I'm not going to let it rain on my parade
0:02:02 > 0:02:06because the auction catalogue described the lot
0:02:06 > 0:02:11that I'm here to see as "a rare and interesting opportunity."
0:02:11 > 0:02:14The property's tucked away along this path,
0:02:14 > 0:02:17which is a very pretty start indeed.
0:02:17 > 0:02:19It's a long walk - hope it's worth it.
0:02:19 > 0:02:23Music: I'm Gonna Be (500 Miles) By The Proclaimers.
0:02:23 > 0:02:27# But I would walk 500 miles and I would walk 500 more
0:02:27 > 0:02:31# Just to be the man who walked a thousand miles
0:02:31 > 0:02:34# To fall down at your door. #
0:02:35 > 0:02:38Ah.
0:02:38 > 0:02:40You have got to be kidding!
0:02:45 > 0:02:50Oh, no. Is it as bad inside? No!
0:03:00 > 0:03:05Yes. It is as bad as it looks. What a disappointment!
0:03:06 > 0:03:10After the build-up of the lovely, secluded location,
0:03:10 > 0:03:13I was hoping for more than a beat-up bungalow.
0:03:13 > 0:03:15As it turns out, there's much more.
0:03:19 > 0:03:23But thankfully, it's not all bad news.
0:03:23 > 0:03:27Because, for a guide price of £200-300,000, not only do you get
0:03:27 > 0:03:33that property, you get over an acre of land and this property as well.
0:03:33 > 0:03:34Fingers crossed.
0:03:37 > 0:03:40I know, I know, you shouldn't judge a book by its cover.
0:03:40 > 0:03:44But surely it's an improvement on that neighbouring property.
0:03:47 > 0:03:49Thank goodness for that.
0:03:49 > 0:03:54This lower property is actually a delight.
0:03:54 > 0:03:55You walk through the door there,
0:03:55 > 0:03:58which I guess is at the rear of the property,
0:03:58 > 0:04:01straight into a really nicely-designed kitchen.
0:04:01 > 0:04:04Fairly modern-looking. All the appliances seem to work.
0:04:04 > 0:04:09And...the trek just might have been worth it.
0:04:11 > 0:04:15So far, this bungalow is in much better condition.
0:04:15 > 0:04:16At least on the face of it.
0:04:17 > 0:04:19There is a smallish bedroom.
0:04:21 > 0:04:23And then a double bedroom.
0:04:25 > 0:04:28And then a very big bathroom with no bath.
0:04:29 > 0:04:33And then, when is a bungalow not really a bungalow?
0:04:33 > 0:04:36When it has a downstairs living room, of course.
0:04:39 > 0:04:40So, all well and good,
0:04:40 > 0:04:45but what makes this a rare and exciting opportunity?
0:04:45 > 0:04:50Well, you could basically redevelop the two existing properties.
0:04:50 > 0:04:55One's going to be quite difficult given its state. This one, less so.
0:04:55 > 0:04:59But the real magic is the prospect of redevelopment.
0:04:59 > 0:05:02It's hinted at in the auction catalogue
0:05:02 > 0:05:03and why not think about that?
0:05:03 > 0:05:10Why not maybe build one fantastic, dream house on this location?
0:05:10 > 0:05:15Or possibly even - you've got the space for it, 1.3 acres -
0:05:15 > 0:05:19build more houses. Four, five, six, who knows? All down to planning.
0:05:19 > 0:05:22But the one thing you've got in your favour is the location.
0:05:24 > 0:05:26And that view can't be beaten.
0:05:26 > 0:05:30Music: I Can See Clearly Now by Jimmy Cliff
0:05:30 > 0:05:35# I can see clearly now the rain is gone
0:05:35 > 0:05:39- # It's gonna be a bright... - Bright...
0:05:39 > 0:05:42# Bright sunshiny day. #
0:05:42 > 0:05:45I admit, the weather is not warm today.
0:05:45 > 0:05:47In fact, it's blooming freezing.
0:05:47 > 0:05:50But this location has certainly fired me up.
0:05:50 > 0:05:54You could lose yourself in these spectacular views.
0:05:54 > 0:05:57And something else to lose are the two bungalows.
0:05:57 > 0:06:01I mean, a dream site needs a dream house, doesn't it?
0:06:01 > 0:06:06But time to get a grip, because of course, there is a snag - access.
0:06:06 > 0:06:10You can't get a car down here, far less building materials.
0:06:10 > 0:06:14Whoever buys this will need to negotiate with the neighbours
0:06:14 > 0:06:17to see if they can buy some of their land to make a wider drive.
0:06:17 > 0:06:20No guarantee they will agree, and, of course,
0:06:20 > 0:06:23there'll be the cost that needs factoring in.
0:06:24 > 0:06:27At a guide price of £200-300,000,
0:06:27 > 0:06:32this lot does represent a huge amount of potential.
0:06:32 > 0:06:34We've asked along a local estate agent
0:06:34 > 0:06:38to tell us their thoughts on this substantial auction lot.
0:06:41 > 0:06:46A new owner will have the issue immediately to deal with the access.
0:06:46 > 0:06:49Only pedestrian at the moment and, if you're looking to create dwellings,
0:06:49 > 0:06:52you'll need vehicular access to get the cars off the road, etc.
0:06:52 > 0:06:55So that will be a major issue, unless, of course,
0:06:55 > 0:06:57you're one of the adjoining neighbours who happens to buy this
0:06:57 > 0:06:59when you'll have plenty of opportunity
0:06:59 > 0:07:01to get a new vehicular access into the properties.
0:07:02 > 0:07:06The good news is that planning for vehicular access is in place,
0:07:06 > 0:07:10but you still have to agree terms and price with the neighbours.
0:07:10 > 0:07:13Let's put access issues to the side.
0:07:13 > 0:07:15What if you renovated these bungalows?
0:07:17 > 0:07:19The bungalows, once refurbished,
0:07:19 > 0:07:22could fetch somewhere in the region of £300,000 each.
0:07:22 > 0:07:24If the bungalows were flattened down and in its replacement
0:07:24 > 0:07:28was a large, detached, palatial property, you could put it
0:07:28 > 0:07:32on the market for somewhere in the region of £750,000 upwards.
0:07:34 > 0:07:37Well, it is a really interesting opportunity
0:07:37 > 0:07:40and you can see the appeal.
0:07:40 > 0:07:43But it's not without its problems, the biggest one, of course,
0:07:43 > 0:07:47being that access issue. Who wanted to take it on?
0:07:47 > 0:07:50Let's find out when it went under the hammer.
0:07:51 > 0:07:54Making the best of what's there or maybe going for new.
0:07:54 > 0:07:57Who's going to say 225 to get us going? 225?
0:07:58 > 0:08:02225? 225?
0:08:02 > 0:08:04200? Who can offer 200? Nice and simply.
0:08:04 > 0:08:08Well, where do you want me to start? I'll have one go, less than 175.
0:08:08 > 0:08:11There we go, we're away. 175. 175.
0:08:11 > 0:08:17Man with a van, 175. 180? Not going to two, just 180. 85?
0:08:17 > 0:08:21190. 195? 195? 195.
0:08:21 > 0:08:22Oh, heavens.
0:08:22 > 0:08:26At 195. At 195. At 195.
0:08:26 > 0:08:32197 and a half, if you reverse? OK, 197 and a half. 197 and a half.
0:08:32 > 0:08:34Two, do I? At 197 and a half.
0:08:34 > 0:08:39198, good heavens. 198. 198. At 198. At 198.
0:08:39 > 0:08:41You're sure and done, then.
0:08:41 > 0:08:45At... Ooh, 199. 199. You fill it up.
0:08:47 > 0:08:50A half I'd take, just to see if the gentleman would go to 200.
0:08:51 > 0:08:54Are we ever going to find out? 199, first time, then.
0:08:54 > 0:08:56Time to move on. At 199, second time.
0:08:56 > 0:09:00199, three and done. Here we go, last chance. There it is. At 199.
0:09:00 > 0:09:03You're missing it. You are missing it. At 199. Sir, yours.
0:09:17 > 0:09:23The successful bidders getting this wonderful lot for £199,000
0:09:23 > 0:09:26were husband and wife, Roy and Angela.
0:09:26 > 0:09:30The couple know this area very well indeed, as they own
0:09:30 > 0:09:33the pair of semi-detached properties at the top of the lane.
0:09:33 > 0:09:35So, no worries about that access issue.
0:09:38 > 0:09:43- Roy, Angela, great to meet you. How are you?- Fine, actually.
0:09:43 > 0:09:46- Wet but fine.- Wet but fine. Happy, presumably.- Yes.
0:09:46 > 0:09:49It went for less than I thought it might.
0:09:49 > 0:09:51That was more than we thought we were going to have to pay, but...
0:09:51 > 0:09:53- Really?- It was.
0:09:53 > 0:09:58It's a massive amount, massive amount of land and what a view.
0:09:58 > 0:10:00- But it was landlocked.- Ah.
0:10:00 > 0:10:05- That's the problem. They only had pedestrian access.- Yes.
0:10:05 > 0:10:11So it made the land, even though it's a fantastic site, restricted.
0:10:11 > 0:10:13Let me get this right, you now own...
0:10:13 > 0:10:17- Well, basically all the properties in this little...- Yes.
0:10:17 > 0:10:20- Everything in this patch, yes. - Fantastic.- It is.
0:10:20 > 0:10:23We've just got to work out what to do with them now.
0:10:23 > 0:10:26I was going to say, do you have a plan? Why did you buy it?
0:10:26 > 0:10:29- We never had an end objective, did we?- No.- Really?
0:10:29 > 0:10:30Other than to own them
0:10:30 > 0:10:33and to control what might be developed here.
0:10:33 > 0:10:36Now we've got them and we've had a look around for a few weeks,
0:10:36 > 0:10:40and wonder what we might do, yes, we have preliminary plans.
0:10:40 > 0:10:42Which change weekly.
0:10:42 > 0:10:45But our preliminary thoughts are
0:10:45 > 0:10:48that we will put in an access road down the side.
0:10:48 > 0:10:52And we will replace these two cottages,
0:10:52 > 0:10:55probably in a completely different configuration.
0:10:55 > 0:10:59- Our early thoughts are Scandinavian log-cabin type places.- Ooh.
0:11:00 > 0:11:05Completely eco-friendly and self-sufficient in energy.
0:11:06 > 0:11:09- Wow. And quite quick to build as well.- Fairly quick to build.
0:11:09 > 0:11:11They're the first thoughts.
0:11:11 > 0:11:14And then one would be big enough for us to move into.
0:11:14 > 0:11:18While we think about what we do with the two semis at the top.
0:11:18 > 0:11:22But this project is ruled by the heart, not the head.
0:11:22 > 0:11:25Roy and Angela have strong connections here.
0:11:25 > 0:11:30The semi they live in was owned by Angela's parents from the 1950s
0:11:30 > 0:11:33and they then used it as a holiday home before settling here
0:11:33 > 0:11:36finally 18 months ago.
0:11:36 > 0:11:37They want to create something
0:11:37 > 0:11:41that sits well in this beautiful location, so phase one,
0:11:41 > 0:11:43subject to planning permission of course,
0:11:43 > 0:11:46is to demolish the bungalows, build the new houses
0:11:46 > 0:11:49and move into one while redeveloping the two semis
0:11:49 > 0:11:54at the top of the hill and creating access - all in 15 months.
0:11:55 > 0:11:58- So, what's the budget?- I was worried you were going to ask me that.
0:11:58 > 0:12:02- We didn't actually buy these with a budget in mind.- So...
0:12:02 > 0:12:07As you've specifically asked, I reckon we will do the two cottages
0:12:07 > 0:12:11and the roadway for between 250,000 and 300,000.
0:12:11 > 0:12:16So, by that point, you will have getting on for half a million quid
0:12:16 > 0:12:20- invested in this little venture. - Down here, yeah.
0:12:20 > 0:12:23And we'd have two cottages, garages, green houses...
0:12:24 > 0:12:29- ..fantastic views when it doesn't rain.- Yeah.- Worth half a million.
0:12:29 > 0:12:33Could we sell for 250,000 each if we wanted to?
0:12:33 > 0:12:36- Yes, no problem.- Right. Well, listen. Congratulations.
0:12:36 > 0:12:38- Thank you very much. - It's a lovely story.
0:12:38 > 0:12:41Can't wait to see how you get on.
0:12:41 > 0:12:46Well, it was an obvious purchase for Roy and Angela, wasn't it?
0:12:46 > 0:12:48In terms of what they're going to do to it, though,
0:12:48 > 0:12:50it all seems a bit up in the air.
0:12:50 > 0:12:53And I don't think they've got their heads round actually owning it yet.
0:12:53 > 0:12:55Apart from the fact that they are certainly
0:12:55 > 0:12:57going to develop the upper part for themselves.
0:12:57 > 0:12:58Quite right too.
0:12:58 > 0:13:00You can find out what happens to this amazing plot in Devon
0:13:00 > 0:13:02later in the show.
0:13:05 > 0:13:08Welcome to Smallthorne near Stoke.
0:13:08 > 0:13:11You might find yourself rather puzzled by some street names here,
0:13:11 > 0:13:14but that's because they were the pet project
0:13:14 > 0:13:17of one of Stoke's Lord Mayors, Horace Barks,
0:13:17 > 0:13:22who was a great fan of Esperanto and did a lot to promote it.
0:13:22 > 0:13:28The pub was at one time called La Verda Stelo or The Green Star
0:13:28 > 0:13:30to us non-Esperanto speakers.
0:13:30 > 0:13:31Sanon!
0:13:31 > 0:13:34What's particularly pleasing is the good quantity
0:13:34 > 0:13:37of ex-local authority stock with its little pathways and lanes.
0:13:37 > 0:13:39And that's what we're here to see.
0:13:45 > 0:13:48So, up this little path to the front
0:13:48 > 0:13:52of what was described in the auction catalogue
0:13:52 > 0:13:55as a two-bedroomed, mid townhouse.
0:13:55 > 0:13:57Guide price, 54,000 quid.
0:14:02 > 0:14:04Useful little porch area there.
0:14:05 > 0:14:09And into your lounge. One big space, but it is quite big.
0:14:09 > 0:14:13I think, with redecoration, it would immediately give a nice impression
0:14:13 > 0:14:14as you walk through the door.
0:14:15 > 0:14:19Gas fire there and my suspicion is it's a back boiler
0:14:19 > 0:14:22which you definitely need to have checked out
0:14:22 > 0:14:24and possibly replaced with a combi.
0:14:24 > 0:14:27But interesting design this, actually.
0:14:27 > 0:14:30You've got this big area here, and then through this little corridor.
0:14:30 > 0:14:33Stairs up to your bedrooms there.
0:14:33 > 0:14:38Lots of storage-y areas. And through into your kitchen. As designs go...
0:14:39 > 0:14:40..I've seen better.
0:14:40 > 0:14:43Cos there's this huge great pillar thing in the middle.
0:14:43 > 0:14:46What is that in there? Nothing, just a cupboard. I mean...
0:14:47 > 0:14:51It sort of doesn't quite flow. Then you've got this bit of glass.
0:14:51 > 0:14:54Admittedly, that throws lots of light into this kitchen
0:14:54 > 0:14:55which is a good thing.
0:14:55 > 0:14:58But it just seems a bit strange, doesn't it?
0:14:58 > 0:15:00Would you get rid of that?
0:15:00 > 0:15:01I think I probably would.
0:15:01 > 0:15:04But then you'd lose this work surface and the kitchen's a bit...
0:15:04 > 0:15:07Just take it all out. Make it all open-plan. That's what people want.
0:15:07 > 0:15:10Knock it all down. A few beams. Be done with it.
0:15:10 > 0:15:12Music: Tear Down These Walls by Billy Ocean
0:15:12 > 0:15:17# Tear down these walls It's got to be all or nothing
0:15:17 > 0:15:21# Tear it down Tear it down. #
0:15:21 > 0:15:25Oh, boy. The first thing to factor in is the plastering bill.
0:15:25 > 0:15:28There's a lot of textured walls and ceilings here.
0:15:28 > 0:15:31But plenty of storage space and a good lay-out.
0:15:31 > 0:15:33Time to say a big YELLOW to upstairs.
0:15:34 > 0:15:36For a relatively small house,
0:15:36 > 0:15:41it does actually feel quite expansive once you get inside.
0:15:41 > 0:15:43Certainly lots of storage.
0:15:43 > 0:15:48Up here, good news, you've got a bathroom - separate loo,
0:15:48 > 0:15:50age-old question, do you knock them together?
0:15:50 > 0:15:54Lots of storage all over the place. And that's good.
0:15:54 > 0:15:56That really is a bonus.
0:15:56 > 0:15:57A bedroom to that side
0:15:57 > 0:16:01and then an almost identical-sized one over here.
0:16:01 > 0:16:03Again, two good double-sized bedrooms.
0:16:03 > 0:16:07And actually, this could be pretty much up and running
0:16:07 > 0:16:10without too much effort.
0:16:10 > 0:16:13Ignoring the variety of plastering needed up the stairs,
0:16:13 > 0:16:16let's go downstairs and have a look in the back garden.
0:16:18 > 0:16:22So technically, I suppose, this is the back of the property.
0:16:22 > 0:16:26You've got a rear entrance with a double gate there
0:16:26 > 0:16:29leading into this little carport area. So that's good.
0:16:29 > 0:16:32But I can imagine this becoming your main route in and out
0:16:32 > 0:16:36of the house because you've got access to a road there, little gate,
0:16:36 > 0:16:38you've also got this carport, so, if you've got a car,
0:16:38 > 0:16:41you're going to be parking your car in here, unloading your shopping
0:16:41 > 0:16:44or whatever and then going back into the house that way.
0:16:44 > 0:16:46It's a decent-sized space.
0:16:46 > 0:16:48Obviously needs a bit of tender loving care
0:16:48 > 0:16:51and, as for this carport, it might have seen better days
0:16:51 > 0:16:55but at least it will keep the rain off your pride and joy.
0:17:01 > 0:17:05The carport's certainly a handy little addition, but I suspect,
0:17:05 > 0:17:08in the condition it's in, you would be better just to knock it down.
0:17:12 > 0:17:14Time for a local estate agent to give us
0:17:14 > 0:17:19an MOT on this property, guided at £54,000.
0:17:19 > 0:17:22The positive to the property is it's very spacious.
0:17:22 > 0:17:26Two good-sized double bedrooms and a good-sized living room
0:17:26 > 0:17:28and a good-sized kitchen.
0:17:28 > 0:17:30People will want to modernise this property.
0:17:30 > 0:17:34It does require a new bathroom and a new kitchen.
0:17:34 > 0:17:36If the property was renovated to a good standard,
0:17:36 > 0:17:39I would be looking to put the property back on the open market
0:17:39 > 0:17:43for an asking price of £74,950.
0:17:43 > 0:17:46The rental market in Smallthorne is very buoyant.
0:17:46 > 0:17:49I'd look to put this property on the open market
0:17:49 > 0:17:51for £450 per calendar month.
0:17:53 > 0:17:56Well, a bit of cosmetic work needed to sort this one out.
0:17:56 > 0:18:00But once you've done that, it's pretty much ready to roll
0:18:00 > 0:18:03as a rental investment or a pretty good place to live.
0:18:03 > 0:18:06Let's see who agreed when it went under the hammer.
0:18:06 > 0:18:08Two-bedroom mid townhouse.
0:18:08 > 0:18:11Gas central heating, a carport, double glazing
0:18:11 > 0:18:14and there is a front garden.
0:18:14 > 0:18:1550 to start?
0:18:16 > 0:18:19Mid townhouse. Two bedrooms. 50, can I say?
0:18:22 > 0:18:2650 bid, thank you. 50 there. £50,000. At £50,000.
0:18:26 > 0:18:3152 can I see now? At £50,000. Looking for 52 now.
0:18:32 > 0:18:38At 50,000. 52. In front of the door at 52,000. 54? 54.
0:18:38 > 0:18:4256. At 56,000. 58?
0:18:44 > 0:18:46One, he's saying. 57.
0:18:46 > 0:18:5058, 59, 60?
0:18:52 > 0:18:56No, at £59,000. Looking for 60 now.
0:18:56 > 0:18:58At £59,000, new bidder on the left?
0:19:01 > 0:19:04Got you at 60. In the room at 60. 61?
0:19:06 > 0:19:12No. Bid's at 60. Standing left at 60,000. Got him at £60,000.
0:19:12 > 0:19:1361, it'll cost you on the net.
0:19:17 > 0:19:21If not, £60,000 to my left, then. For the first time.
0:19:21 > 0:19:27£60,000 for the second time. Third and final time at £60,000.
0:19:28 > 0:19:29You bought it. Well done.
0:19:35 > 0:19:38Clearly chuffed at getting the property for 60,000
0:19:38 > 0:19:40was former trainee accountant, Lee.
0:19:40 > 0:19:45I went along to meet him to find out if he thinks the numbers stack up.
0:19:46 > 0:19:48- Lee, great to meet you. - Yeah, nice to meet you too, Martin.
0:19:48 > 0:19:52- Congratulations.- Thank you.- Tell me why you wanted to buy this place.
0:19:52 > 0:19:55Well, as you see for yourself,
0:19:55 > 0:20:00there's a bit of work that needs to be done. It's a project.
0:20:00 > 0:20:02It's going to turn into a buy-to-let.
0:20:02 > 0:20:05Get a tenant in it and see where it goes.
0:20:05 > 0:20:08- Right. Is this something you do? - I've done a few in the past.
0:20:08 > 0:20:11But more to the point, I've learned my lessons from buying it,
0:20:11 > 0:20:14renting it and hoping to sell it.
0:20:14 > 0:20:17More at the point of now buying it and just letting it.
0:20:17 > 0:20:19Doing a little bit of work and letting them out.
0:20:19 > 0:20:21So how long have you been doing it for?
0:20:21 > 0:20:25- Probably bought my first house about five years ago.- OK.
0:20:25 > 0:20:27But seriously over the last two years,
0:20:27 > 0:20:29I've been going a bit more into the rental market.
0:20:29 > 0:20:32Right. So what do you think the biggest lessons you've learned are?
0:20:32 > 0:20:36Erm... Well, five years ago after buying my first house,
0:20:36 > 0:20:39I woke up in hospital maybe two months later.
0:20:39 > 0:20:44- What do you mean? - Helicopter rescue.- What?!
0:20:44 > 0:20:49- Yeah. So, anyway, I've overcome all that now.- Stop, stop, stop.
0:20:49 > 0:20:51So you bought your first house. You ended up...
0:20:51 > 0:20:53- I bought my first house at auction. - Right.
0:20:53 > 0:20:56- You ended up having a helicopter rescue.- I had a sporting accident.
0:20:56 > 0:20:59- Oh.- So I've perhaps learned my lesson there,
0:20:59 > 0:21:01not to go kitesurfing again.
0:21:01 > 0:21:04Kitesurfing. Oh, no. What happened?
0:21:04 > 0:21:07I woke up in hospital six weeks later. I don't know.
0:21:07 > 0:21:10Anyway, I've forgotten about that now. Concentrating on property.
0:21:10 > 0:21:11Right.
0:21:11 > 0:21:16# And it's time I moved on... #
0:21:16 > 0:21:20Lee has moved on, with no small thanks to his family.
0:21:20 > 0:21:22When Lee awoke from his coma,
0:21:22 > 0:21:25he discovered his grandfather had paid the remaining amount
0:21:25 > 0:21:28for the property, saving his deposit,
0:21:28 > 0:21:31and that set Lee on the road to development.
0:21:31 > 0:21:33So far, he's renovated nine properties,
0:21:33 > 0:21:36so has a good team of tradespeople to call on.
0:21:36 > 0:21:39So talk me through exactly what the plans are for this house, then.
0:21:39 > 0:21:42So, if I'm honest with you, when I bought the property,
0:21:42 > 0:21:45I had a really small budget and I thought,
0:21:45 > 0:21:49"I don't need to do anything. A lick of paint here, a lick of paint there, new combi boiler."
0:21:49 > 0:21:53But now I'm in the property - plastering, doing away with.
0:21:53 > 0:21:58I'll have a new kitchen. I'll replace the toilet, bath, sink.
0:21:58 > 0:22:01And full decoration. Obviously, new carpets.
0:22:01 > 0:22:05- The bulk of the work is going to be putting a gas combi boiler in.- Right.
0:22:05 > 0:22:07Just depends whether the plumber
0:22:07 > 0:22:10can get away with the original plumbing fittings that are in,
0:22:10 > 0:22:12or he might have to re-pipe it,
0:22:12 > 0:22:16so that could be a budget that goes from £500 to a grand,
0:22:16 > 0:22:19but we'll have to see what he says.
0:22:19 > 0:22:21Lee seems to know what he's doing with this house.
0:22:21 > 0:22:25He's confident of having this place ready in four weeks.
0:22:25 > 0:22:27But he keeps mentioning the budget
0:22:27 > 0:22:30and I'm wondering how much he really has to spend.
0:22:31 > 0:22:38- What is the budget?- Ha, so the budget for all this work is £4,000.
0:22:38 > 0:22:42- OK.- And I've got a short timescale as well because, obviously,
0:22:42 > 0:22:45the longer it goes on, the more it's costing you.
0:22:45 > 0:22:48And then more properties on the horizon, I guess?
0:22:48 > 0:22:51Erm, when you're knee-deep in dirt here,
0:22:51 > 0:22:53I say I'm never doing this again,
0:22:53 > 0:22:56but as soon as somebody moves in, get me another property.
0:22:56 > 0:23:00- You speak a lot of sense.- A lot of people wouldn't say that!- You do.
0:23:00 > 0:23:01Really, you do.
0:23:01 > 0:23:05Good luck with it all, and look forward to see how you get on.
0:23:05 > 0:23:08- Thank you, Martin.- Nice to meet you.
0:23:08 > 0:23:10Well, Lee really does speak a lot of sense.
0:23:10 > 0:23:14I think he's got exactly the right plans for this property.
0:23:14 > 0:23:16Will he get it sorted out in four weeks though
0:23:16 > 0:23:18and on that very tight budget?
0:23:18 > 0:23:20You can find out later in the show.
0:23:22 > 0:23:24Coming up, in East Kilbride,
0:23:24 > 0:23:28it's more than profit being wrought from this property.
0:23:28 > 0:23:30So you're the wrought iron man.
0:23:30 > 0:23:32You're going to bring that balcony to life.
0:23:33 > 0:23:37And in Smallthrone, can Lee wring any profit,
0:23:37 > 0:23:39- or has he blown the budget? - Quick total on the numbers.
0:23:39 > 0:23:41Unfortunately, I've come over that budget.
0:23:53 > 0:23:56Welcome back to the dramatic coastline of Devon
0:23:56 > 0:24:01and the hamlet of Hollacombe, where earlier I found two bungalows -
0:24:01 > 0:24:03one tired, the other dilapidated -
0:24:03 > 0:24:08on a perfectly placed plot with some spectacular views.
0:24:13 > 0:24:19They were bought for £199,000 by husband and wife, Roy and Angela,
0:24:19 > 0:24:22who not only owned these properties, but also the pair of semis
0:24:22 > 0:24:26at the top of the path leading to their new acquisition.
0:24:26 > 0:24:28They were delighted with their purchase
0:24:28 > 0:24:31but hadn't really decided what they were going to do next.
0:24:35 > 0:24:38Do you have a plan? Why did you buy it?
0:24:38 > 0:24:41- We never had an end objective, did we?- Really?
0:24:41 > 0:24:42Other than to own them
0:24:42 > 0:24:45and to control what might be developed here.
0:24:45 > 0:24:48Now we've got them and we've had a look around for a few weeks
0:24:48 > 0:24:52and wonder what we might do, yes, we have preliminary plans.
0:24:52 > 0:24:54Which change weekly.
0:24:58 > 0:25:01They had so many options, but whatever they chose to do,
0:25:01 > 0:25:03it was definitely going to be big.
0:25:03 > 0:25:06Getting an access road sorted was a priority,
0:25:06 > 0:25:10but after that, the eventual outcome was anyone's guess.
0:25:13 > 0:25:17Two years later, and I can't wait to see what they decided to do.
0:25:21 > 0:25:24Wow! I'm impressed.
0:25:25 > 0:25:27Where once stood a dated bungalow
0:25:27 > 0:25:31is now a stunning three-bedroom, split-level home.
0:25:34 > 0:25:36Time to step inside, I think.
0:25:47 > 0:25:50Drag yourself away from this beautiful kitchen
0:25:50 > 0:25:55and upstairs will take your breath away just as much.
0:26:04 > 0:26:08On the level down are the three double bedrooms...
0:26:13 > 0:26:17..with this master bedroom featuring a stylish en-suite.
0:26:23 > 0:26:28The main bathroom is contemporary and beautifully finished.
0:26:28 > 0:26:31And there's a very smart utility room on this level too.
0:26:34 > 0:26:38Go upstairs into the loft room, underneath the unpacked boxes
0:26:38 > 0:26:40could eventually be another bedroom.
0:26:46 > 0:26:47From top to bottom,
0:26:47 > 0:26:51this newly-built property oozes charm and desirability,
0:26:51 > 0:26:54with the kitchen looking out onto those stunning views
0:26:54 > 0:26:56a particular highlight.
0:26:57 > 0:27:01I think this is our favourite room, the kitchen/dining room.
0:27:01 > 0:27:05Works brilliantly well, and as you can see, the view is just stunning.
0:27:08 > 0:27:10Along with the three-bed house,
0:27:10 > 0:27:13Roy has also completed two double garages
0:27:13 > 0:27:16and a shed, which houses a biomass boiler,
0:27:16 > 0:27:21heating the completed house and any potential future houses.
0:27:23 > 0:27:27The all-important vehicular access road is nearing completion
0:27:27 > 0:27:31and whilst there is still work to be done here, including a fair bit
0:27:31 > 0:27:35of landscaping, what has been done is of a very high standard indeed.
0:27:37 > 0:27:41But it has been a long and winding road to get to this point.
0:27:42 > 0:27:47When we finally acquired all the site and put the drive in,
0:27:47 > 0:27:51the real problem for us was to decide what to do.
0:27:51 > 0:27:54We changed our minds at least ten times,
0:27:54 > 0:27:58but eventually, came up with the scheme we're now going forward with.
0:28:00 > 0:28:04We were delayed initially because of bats in the derelict property,
0:28:04 > 0:28:08so that was a problem to provide a garage and had to build that
0:28:08 > 0:28:12entirely separately first before we could really get going.
0:28:12 > 0:28:15So we call that our phase one.
0:28:15 > 0:28:18Demolition was a problem because we had asbestos and...
0:28:19 > 0:28:22Which had to be disposed of
0:28:22 > 0:28:25properly and professionally. And then the actual building.
0:28:25 > 0:28:31But we had a good foreman that I came across right at the beginning
0:28:31 > 0:28:34who was able to put us in touch with tradesmen
0:28:34 > 0:28:37who have worked out really well for us.
0:28:37 > 0:28:40So overall, it's gone pretty smoothly.
0:28:41 > 0:28:43It's great that Roy is so positive,
0:28:43 > 0:28:48considering the challenges he's faced, particularly that bat issue.
0:28:48 > 0:28:51Bats are a protected species in Britain,
0:28:51 > 0:28:54so Roy had to provide new lodgings for his guests
0:28:54 > 0:28:58which are now in the roof of the double garage.
0:28:58 > 0:29:02It's taken two years to get to this point, but they're not done yet.
0:29:02 > 0:29:06They still plan to demolish the properties at the top of the drive
0:29:06 > 0:29:09and build two new four-bedroom detached properties there,
0:29:09 > 0:29:12with a view to moving into one of them once complete.
0:29:14 > 0:29:18For now though, Roy and Angela are living in the completed property
0:29:18 > 0:29:21along with their daughter and her husband.
0:29:21 > 0:29:25But with the project ongoing, what's been Roy's role up to now?
0:29:26 > 0:29:28Well, I sort of project managed.
0:29:28 > 0:29:32Bought all the materials, hired in the labour.
0:29:32 > 0:29:37Did I physically put my elbow grease in and do work? No.
0:29:37 > 0:29:41- HE LAUGHS - No, not my scene, I'm afraid.
0:29:42 > 0:29:47The initial budget of £250-300,000 was always a bit of a guess,
0:29:47 > 0:29:51as Roy and Angela hadn't decided exactly what they wanted to do.
0:29:51 > 0:29:54So how close a guess was it?
0:29:54 > 0:29:56That's totally gone out of the window.
0:29:57 > 0:30:03And our total spend to date has been 375,000,
0:30:03 > 0:30:07but that includes the garage we built for the bats,
0:30:07 > 0:30:09that includes the biomass boiler...
0:30:09 > 0:30:16The house - the house and garage - we have spent 253,000 to date.
0:30:17 > 0:30:22And we have, I'm guessing, probably around another 15,000 to spend.
0:30:23 > 0:30:28Roy and Angela bought the site for £199,000.
0:30:28 > 0:30:29They've demolished the two bungalows,
0:30:29 > 0:30:33built two garages, created an amazing house
0:30:33 > 0:30:37and built a really good access road which is still to be completed.
0:30:37 > 0:30:42And their final projected spend on the project is £589,000.
0:30:42 > 0:30:45What do two local estate agents think?
0:30:45 > 0:30:48Starting with the agent who saw it originally.
0:30:48 > 0:30:51The transformation is absolutely wonderful.
0:30:51 > 0:30:54This property certainly has that wow factor that you don't use very often
0:30:54 > 0:30:57when you come to inspect properties, but this certainly has got it.
0:30:57 > 0:30:58And that gable end,
0:30:58 > 0:31:01contemporary-style, glass-fronted window, just does it for you.
0:31:01 > 0:31:04The build quality inside is far superior
0:31:04 > 0:31:06to a lot of modern-build houses you would get on the open market.
0:31:08 > 0:31:10No doubt it's a fabulous house.
0:31:10 > 0:31:14The agents believe it could fetch between £1,800 and £2,000
0:31:14 > 0:31:16per calendar month, if it was rented,
0:31:16 > 0:31:18offering just over a 4% yield.
0:31:18 > 0:31:23But that won't be of any interest to Roy and Angela - or will it?
0:31:23 > 0:31:26Well, if our son ends up renting this home in the future,
0:31:26 > 0:31:28that's really useful to know.
0:31:29 > 0:31:34- That may pay our nursing home fees.- Yes. - THEY LAUGH
0:31:35 > 0:31:39Well, on that cheery note, let's move to the valuations
0:31:39 > 0:31:43with that £589,000 projected end spend invested.
0:31:47 > 0:31:50If the property was to go onto the market today,
0:31:50 > 0:31:54I would be recommending an asking price of £695,000
0:31:54 > 0:31:57and I would expect to achieve a figure very close to that.
0:31:57 > 0:31:59If the property was to be placed on the market,
0:31:59 > 0:32:02you'd be likely to receive somewhere in the region of £750,000.
0:32:02 > 0:32:06I think the valuations, really, to be honest, are a little on the low side.
0:32:08 > 0:32:10I would be expecting more money for the house
0:32:10 > 0:32:12because I think it's unique.
0:32:12 > 0:32:16A lot of effort has gone into it, so I think they're on the low side.
0:32:18 > 0:32:24Even with Angela's reservations, that top valuation of £750,000
0:32:24 > 0:32:29would bring in a pre-tax profit of £171,000.
0:32:29 > 0:32:31And the project is only half finished,
0:32:31 > 0:32:34with the two properties they originally
0:32:34 > 0:32:39owned at the top of the drive being demolished in the next two weeks.
0:32:39 > 0:32:43But with a chance to reflect, how are they feeling about the project?
0:32:45 > 0:32:48It's great. It's not really stressful.
0:32:48 > 0:32:52Only trying to describe to my wife what was actually going to happen.
0:32:52 > 0:32:54Time and time again.
0:32:54 > 0:32:56Time and time again, as you correctly say.
0:32:58 > 0:32:59But you've done very well.
0:32:59 > 0:33:00Thank you, dear. Thank you.
0:33:05 > 0:33:07The post-war solution to the housing crisis
0:33:07 > 0:33:09was the building of new towns.
0:33:09 > 0:33:13East Kilbride was one of the first in Scotland.
0:33:13 > 0:33:16The town was subdivided into residential precincts
0:33:16 > 0:33:18and Westwood is one of those.
0:33:18 > 0:33:22It has its own shops, schools and community amenities.
0:33:22 > 0:33:24And it's a great place for commuters
0:33:24 > 0:33:26as it's only 20 minutes away from Glasgow.
0:33:28 > 0:33:31It's just a 10 to 15 minute walk from the town centre
0:33:31 > 0:33:34and a few minutes away from the local shops.
0:33:34 > 0:33:38Well, here I am, it's a two-bedroom, top-floor flat in this building.
0:33:38 > 0:33:43The guide price - £44,500 plus. Looks a bit grey from the outside.
0:33:43 > 0:33:47It might be in better condition on the inside. I'm going up.
0:33:47 > 0:33:49Music: Get Up! (Before The Night Is Over) By Technotronic
0:33:49 > 0:33:51# Get up, get up, get busy, do it Get up and move that body
0:33:51 > 0:33:55- # Get up, people, now get down to it - Before the night is over
0:33:55 > 0:33:57# Get up, get up, get busy do it
0:33:57 > 0:33:58# I wanna see you party
0:33:58 > 0:34:02- # Get up, people, now get down to it - Before the night is over
0:34:02 > 0:34:06# Get down! Get up! # SHE PANTS
0:34:06 > 0:34:09Call me unfit.
0:34:09 > 0:34:11That is quite a lot of stairs to climb,
0:34:11 > 0:34:14so people that aren't fit need not apply for this one.
0:34:14 > 0:34:18Phew! OK. Let's have a good look around. So what have we got?
0:34:18 > 0:34:23Nice wide hallway. Storage space in here.
0:34:23 > 0:34:26A rather unusual tiled bathroom through there.
0:34:26 > 0:34:29We've got a bedroom - again, nice and spacious.
0:34:29 > 0:34:32Airing cupboard, always love to have one of those.
0:34:32 > 0:34:34Bedroom number two through here.
0:34:34 > 0:34:37Lovely big windows, lots of greenery on the outside.
0:34:37 > 0:34:41Quite a lot of this textured plaster going on, though.
0:34:41 > 0:34:43And the kitchen...
0:34:43 > 0:34:47Yay, a serving hatch. Everybody loves these. Morning!
0:34:48 > 0:34:50So the kitchen, let's have a good old look around.
0:34:50 > 0:34:54How can we improve this? Well, for starters, ahem...
0:34:54 > 0:34:57Polystyrene tiles, fire hazard. They've got to do.
0:34:57 > 0:35:01Just get every polystyrene tile off every single ceiling
0:35:01 > 0:35:03because they are everywhere.
0:35:03 > 0:35:05Boiler, little bit cumbersome.
0:35:05 > 0:35:07We could probably reduce that, have a combi.
0:35:07 > 0:35:09You've got all the exterior pipe work showing.
0:35:09 > 0:35:12You may even be able to relocate that somewhere else.
0:35:12 > 0:35:17And it just needs a general tidy up. The units look really old-fashioned.
0:35:17 > 0:35:20You could do with something a lot more modern here.
0:35:20 > 0:35:22But these properties, they were made to last.
0:35:22 > 0:35:24And with a nice overhaul on this place,
0:35:24 > 0:35:27you could have a cracking property.
0:35:27 > 0:35:31And believe me, overhaul isn't too strong a word.
0:35:31 > 0:35:33But the lounge has access to a balcony
0:35:33 > 0:35:36and some unusual fitted furniture.
0:35:37 > 0:35:41The wiring looks like it's been overloaded rather than overhauled.
0:35:41 > 0:35:43And as for that bathroom,
0:35:43 > 0:35:46I'd rather take a rain check than a shower in there, thanks.
0:35:53 > 0:35:56That said, I'm sure after a good refurbishment,
0:35:56 > 0:35:59this property would easily rent out.
0:35:59 > 0:36:03Because East Kilbride has been so successful as a new town,
0:36:03 > 0:36:06it's still very popular as a place to live and work.
0:36:06 > 0:36:09So these flats are very much in demand.
0:36:09 > 0:36:13Now, the council have re-rendered many similar properties
0:36:13 > 0:36:14around this area already
0:36:14 > 0:36:18and it really is just a matter of time before this one is done too
0:36:18 > 0:36:23and that will make the whole area so much more aesthetically pleasing.
0:36:23 > 0:36:26The roof has already been done, so that's good news.
0:36:26 > 0:36:29Of course, you have to factor in any share of the costs
0:36:29 > 0:36:31of any future work.
0:36:31 > 0:36:32But I think this is looking good.
0:36:32 > 0:36:35What can an expert from the auction house who sold it
0:36:35 > 0:36:37tell us about this area?
0:36:38 > 0:36:40These properties are great starter flats.
0:36:40 > 0:36:41They're also fantastic buy-to-lets.
0:36:41 > 0:36:45And the buy-to-let market in East Kilbride is very, very strong.
0:36:45 > 0:36:47So that's why you'll normally see,
0:36:47 > 0:36:49if you drive down a street in East Kilbride,
0:36:49 > 0:36:51there's predominantly quite a lot of boards up,
0:36:51 > 0:36:54but they will go to sold just as quickly as they come on the market.
0:36:54 > 0:36:57The average home report valuation at the moment would probably
0:36:57 > 0:37:00be around about 65 in its current condition.
0:37:00 > 0:37:02If it's done up, it could be slightly more.
0:37:02 > 0:37:05It would depend on the finish but it would be around about,
0:37:05 > 0:37:08I would say, £65,000.
0:37:08 > 0:37:10This being a popular commuter area to Glasgow,
0:37:10 > 0:37:13what sort of rental could you expect?
0:37:13 > 0:37:16Dependant on the condition, they normally would go for somewhere
0:37:16 > 0:37:22in the region of £425 per calendar month to £450 per calendar month.
0:37:23 > 0:37:26With this property, you've got to see through the dirt
0:37:26 > 0:37:30and the dust and envisage a lovely, new rendered exterior
0:37:30 > 0:37:33and you've got yourself a great flat.
0:37:33 > 0:37:37Handy for the town centre and it's an easy commute to Glasgow too.
0:37:37 > 0:37:40Let's see who thought this flat has potential
0:37:40 > 0:37:41when it went under the hammer.
0:37:41 > 0:37:44Great buy-to-let, close to the town centre.
0:37:44 > 0:37:4744 and a half. Let's start at 40.
0:37:48 > 0:37:54At £40,000. 35, then? At 35, I'm bid. In once. At £35,000.
0:37:56 > 0:38:02Bit early for halves, man. I can't count. 35 and a half. 36. Half.
0:38:02 > 0:38:06No? With you at 36. Half here. Seven.
0:38:06 > 0:38:09The auctioneer does continue in £500 bids
0:38:09 > 0:38:12until we rejoin the bidding at £40,000.
0:38:13 > 0:38:15At £40,000. Are we all done?
0:38:15 > 0:38:20At £40,000, then. First time. Half. 41.
0:38:21 > 0:38:26You're not sure now. With you, sir, at £40,500.
0:38:26 > 0:38:32Are we all done, then? At £40,500... 41. You're back in. Half?
0:38:32 > 0:38:36Two. Half. Three. Half.
0:38:36 > 0:38:3843 and a half.
0:38:38 > 0:38:43Not sure. With you at 43,500. 44. Half?
0:38:44 > 0:38:45Nearly. Might be worth it.
0:38:47 > 0:38:49At £44,000, then.
0:38:49 > 0:38:53At £44,000. For the first time.
0:38:53 > 0:38:56With you. 44 and a half. 45.
0:38:56 > 0:38:58The bidding doesn't let up
0:38:58 > 0:39:01as we pass the guide price of £44,500.
0:39:01 > 0:39:05We rejoin at £45,750.
0:39:05 > 0:39:0745,750. 46.
0:39:09 > 0:39:13250. You're out. You're in at 46.
0:39:13 > 0:39:19At £46,000, then. Are we done? Here to sell, in the room at £46,000.
0:39:19 > 0:39:21First time.
0:39:21 > 0:39:23Second time.
0:39:23 > 0:39:27Third and final time, then, £46,000. Selling away.
0:39:27 > 0:39:29Well done, sir.
0:39:29 > 0:39:32Good bidding. 291.
0:39:32 > 0:39:33The successful bidder,
0:39:33 > 0:39:38finally getting the property for £46,000, was Neil.
0:39:38 > 0:39:41He braved the stairs along with his wife, Sally,
0:39:41 > 0:39:43to tell me what his plans for the flat were.
0:39:49 > 0:39:51- Neil and Sally, congratulations. - Thank you.
0:39:51 > 0:39:53Why did you want to buy this flat?
0:39:53 > 0:39:55We've got several buy-to-let properties now
0:39:55 > 0:39:59and we just wanted to add to our portfolio.
0:39:59 > 0:40:00It's a good area. Good price.
0:40:00 > 0:40:03You didn't have to creep too much over the guide price,
0:40:03 > 0:40:04which is a good thing.
0:40:04 > 0:40:09Yeah, the guide price was 44,500 and we paid 46.
0:40:09 > 0:40:1146 was my very last bid.
0:40:11 > 0:40:15I was at the auction with my brother and he's an accountant, so...
0:40:15 > 0:40:18He had my figures screwed right down.
0:40:18 > 0:40:20So you were happy with what you paid on the day?
0:40:20 > 0:40:23- Yeah, it was a good price, we felt. - So what are you going to do?
0:40:23 > 0:40:26- Is this a buy-to-let project for you?- Yes.
0:40:26 > 0:40:28This will be a buy-to-let project, yes.
0:40:28 > 0:40:31We're going to replace bathroom, kitchen,
0:40:31 > 0:40:33and we'll re-plaster the property throughout.
0:40:33 > 0:40:36- The ceiling, all the walls. - New windows, new doors.
0:40:36 > 0:40:39Oh, I'm glad you've said that, cos everything was on my tick-box list.
0:40:39 > 0:40:41Shall we start with the kitchen?
0:40:41 > 0:40:42What are you going to do to change that?
0:40:42 > 0:40:44Well, we're hoping to move the boiler
0:40:44 > 0:40:47and try and put that into the cupboard in the hall.
0:40:47 > 0:40:49Just to give a bit more room in there.
0:40:49 > 0:40:52- And we're going to replace the entire kitchen.- Laminate floors.
0:40:52 > 0:40:53At the end of the day,
0:40:53 > 0:40:56we've got to realise that it is a rental property,
0:40:56 > 0:40:59- so it will be a good standard but it won't be done up like a palace.- No.
0:40:59 > 0:41:03- Because we're working to a budget. - Yeah. Just clean and tidy.- Yes.
0:41:04 > 0:41:06We're agreed on what needs doing on the inside,
0:41:06 > 0:41:09but this block is certainly not as appealing as the blocks around,
0:41:09 > 0:41:13which have had a face-lift with new rendering.
0:41:13 > 0:41:15I'm wondering if they've thought about the possible benefits
0:41:15 > 0:41:17and the cost of the work.
0:41:19 > 0:41:23With these buildings, you normally need all the neighbours' consent
0:41:23 > 0:41:27and then the local council will re-render the property.
0:41:27 > 0:41:31And the bill is split amongst all the owners of the property.
0:41:31 > 0:41:33So that's something we could look at with the other neighbours
0:41:33 > 0:41:35to see if that could be done in the future.
0:41:35 > 0:41:38Guys, I have noticed something in here.
0:41:38 > 0:41:41Damp or some awful leak that's happened from the roof,
0:41:41 > 0:41:43but it does look like you've got a new roof,
0:41:43 > 0:41:45so was that previous to the roof going on?
0:41:45 > 0:41:49Yes, I read the home report before bidding for the property
0:41:49 > 0:41:52and it is a historical damage with a leak.
0:41:52 > 0:41:55So it shouldn't be an issue now that the new roof is on.
0:41:55 > 0:41:58So when you get your paint, it's going to look fantastic.
0:41:58 > 0:42:01What are you going to do about all the textured plaster everywhere?
0:42:01 > 0:42:05It's everywhere and that is quite difficult to sort out.
0:42:05 > 0:42:07Erm, I've got an excellent plasterer that I've used
0:42:07 > 0:42:11in all my previous properties and he will work his magic
0:42:11 > 0:42:12and we'll have nice, smooth walls.
0:42:12 > 0:42:14That's quite a costly job, though.
0:42:14 > 0:42:16Every single wall's going to need that.
0:42:16 > 0:42:19We always do it throughout the property. All the rooms.
0:42:19 > 0:42:20Ceilings, walls...
0:42:20 > 0:42:22Because we feel for years into the future,
0:42:22 > 0:42:24it makes it more maintenance-free.
0:42:24 > 0:42:28It's easier for touch ups in the future with rental properties.
0:42:28 > 0:42:30But he does a good job.
0:42:30 > 0:42:32So your ethos is, get it sorted in the beginning, do it well,
0:42:32 > 0:42:36- and then you just need to re-touch up over the years.- Yeah.
0:42:36 > 0:42:38- It's a good way of thinking.- Yeah.
0:42:38 > 0:42:40Neil, I've noticed the windows are in a bit of a bad state.
0:42:40 > 0:42:44You can hear the road, you can hear the lawnmower out there.
0:42:44 > 0:42:45Are you going to replace them?
0:42:45 > 0:42:48Yes, we're going to replace the windows throughout the property.
0:42:48 > 0:42:52We're also going to replace the patio door onto the balcony
0:42:52 > 0:42:55and I actually make wrought-iron gates and railings
0:42:55 > 0:42:59so I'm going to replace the balcony with something decorative.
0:42:59 > 0:43:01So you're the wrought iron man.
0:43:01 > 0:43:04- You're going to bring that balcony to life.- Yes, I am.
0:43:04 > 0:43:06So how long have you been in that business?
0:43:06 > 0:43:10Er, I've been doing that a few years now with my friend, so...
0:43:10 > 0:43:14- We enjoy it, it's good fun.- So how involved do you get with this?
0:43:14 > 0:43:17Erm... Obviously, I can't do the trades,
0:43:17 > 0:43:20but I try and do as much as I can
0:43:20 > 0:43:24and help with the arranging and try and keep to a timescale.
0:43:24 > 0:43:26Is this something that you've always enjoyed doing,
0:43:26 > 0:43:27dabbling in the property market,
0:43:27 > 0:43:30or is this something that you're really taking more seriously now?
0:43:30 > 0:43:32I'd say more recently we have.
0:43:32 > 0:43:38- We started our first rental probably about...- Seven years ago.
0:43:38 > 0:43:40This will be our fifth property now.
0:43:40 > 0:43:43Right, going to ask you the question now. Budget.
0:43:43 > 0:43:46How much are you spending here, including that lovely balcony?
0:43:46 > 0:43:48- As little as possible! - As little as possible.
0:43:48 > 0:43:51No, we're hoping to stick to a budget of 10,000.
0:43:51 > 0:43:53Which we think is realistic.
0:43:53 > 0:43:57That will be a great budget for a project like this. Timescale?
0:43:57 > 0:44:00- How long do you think it's going to take you, Sally?- Hmm...
0:44:00 > 0:44:0210, 12 weeks? We hope. Yeah.
0:44:02 > 0:44:04Well, look, I'm really looking forward
0:44:04 > 0:44:06to seeing how it all turns out for you.
0:44:06 > 0:44:08It's been smashing meeting you both today
0:44:08 > 0:44:12- and good luck with this project. - Thank you.- Thank you.
0:44:12 > 0:44:15Sally and Neil are planning a huge face-lift here.
0:44:15 > 0:44:17They're getting rid of the textured walls,
0:44:17 > 0:44:19the polystyrene tiles are coming down,
0:44:19 > 0:44:23and they're even going to get rid of my little serving hatch.
0:44:23 > 0:44:25But I think they've bought at the right time
0:44:25 > 0:44:30and there is clearly a demand for these type of flats.
0:44:30 > 0:44:34I can't wait, though, to see Neil's wrought-iron masterpiece balcony.
0:44:34 > 0:44:36You can join me later on in the programme
0:44:36 > 0:44:38to find out how they both get on.
0:44:41 > 0:44:43Well, Martin, we've waved one property renovation
0:44:43 > 0:44:46off into the sunset. But we've got more to come.
0:44:46 > 0:44:50Yes, did the others have a walk in the park or end up on a rocky road?
0:44:50 > 0:44:53Let's find out.
0:44:53 > 0:44:57Earlier on, we were going bilingual in Smallthorne near Stoke,
0:44:57 > 0:45:00home to a variety of styles of properties
0:45:00 > 0:45:03and Esperanto language enthusiasts.
0:45:03 > 0:45:07We met Lee, who had managed to grab this two-up two-down
0:45:07 > 0:45:11for £60,000 at auction, and he spoke the language of common sense.
0:45:13 > 0:45:15Wanted something good value.
0:45:15 > 0:45:18Prepared to get my hands dirty, do a bit of work.
0:45:18 > 0:45:21I've come and look at this one and thought, yeah, maybe four,
0:45:21 > 0:45:26- four or five weeks' work and then get a tenant.- You speak a lot of sense.
0:45:26 > 0:45:29- A lot of people wouldn't say that! - You do. Really, you do.
0:45:29 > 0:45:34So how did sensible Lee get on? Five weeks later, we're back.
0:45:43 > 0:45:47Just what Lee was planning - a fresh and simple renovation.
0:45:49 > 0:45:53The textured walls are still there, but then Lee knew
0:45:53 > 0:45:56that probably couldn't be done on his four grand budget.
0:45:56 > 0:45:59Top of his list was the plumbing and a general freshen up.
0:46:25 > 0:46:27A decision had to be made
0:46:27 > 0:46:31on the serving hatch-cum-kitchen window to the lounge.
0:46:31 > 0:46:34Once the property was clear of all these materials,
0:46:34 > 0:46:37it was clear that it had to go and it was better
0:46:37 > 0:46:40just to identify the kitchen as one solid room and lounge as another.
0:46:45 > 0:46:49Lee said he wanted to get his hands dirty on the project
0:46:49 > 0:46:50and he certainly has.
0:46:50 > 0:46:53In fact, he fitted this lovely kitchen on his own.
0:46:57 > 0:47:01Upstairs now and, like elsewhere, the plastering remains.
0:47:01 > 0:47:05But there was a question of knocking toilet and bathroom together.
0:47:07 > 0:47:09Lee has decided to keep them separate.
0:47:09 > 0:47:11New tiling and the suite has given it a lift.
0:47:25 > 0:47:29I thought of turning the bathroom suite and toilet into one room.
0:47:29 > 0:47:32Plumber said, "Keep it separate."
0:47:32 > 0:47:35Family and friends said, "Make it one room."
0:47:35 > 0:47:37I was undecided.
0:47:37 > 0:47:42As a costing point of view, I decided to keep it as two separate rooms.
0:47:42 > 0:47:45You know me, I like them separate anyway.
0:47:45 > 0:47:49The two bedrooms are now much more modern and neutral.
0:47:49 > 0:47:51Perfect for the rental market.
0:47:55 > 0:47:57Let's take a look outside.
0:47:57 > 0:48:00The rear yard originally had a carport
0:48:00 > 0:48:02and a load of overgrown brambles.
0:48:02 > 0:48:07The carport was dismantled and it was clear that the rear fence
0:48:07 > 0:48:10needed a bit of restructuring to make it strong.
0:48:10 > 0:48:13But it was quite easily done, only a couple of day's work.
0:48:13 > 0:48:16And I'm still in the process
0:48:16 > 0:48:19of making a new fence around the car area.
0:48:19 > 0:48:22And I think it's worked out.
0:48:22 > 0:48:25He had a four grand budget. How much did he spend?
0:48:27 > 0:48:28Quick total of the numbers.
0:48:28 > 0:48:30Unfortunately, I've come over that budget,
0:48:30 > 0:48:32which I'm not too happy about.
0:48:32 > 0:48:35It's come in at 5,900.
0:48:35 > 0:48:38It was just a case of the tiling cost an extra £200,
0:48:38 > 0:48:42the boiler cost an extra £200, the carpet cost an extra £200.
0:48:42 > 0:48:47All in all, it's added to about £1,900 of underestimated cost.
0:48:47 > 0:48:51The biggest problem I've had was the timescale I put myself under.
0:48:51 > 0:48:55From the start, I know I'd told myself I'd do it in four weeks.
0:48:55 > 0:48:57Potentially maximum six weeks.
0:48:57 > 0:49:01Well, normally on projects, it's more of a relaxed attitude,
0:49:01 > 0:49:02as in, "When it's done, it's done."
0:49:02 > 0:49:05Whereas this one, I knew I'd got the cameras coming back
0:49:05 > 0:49:06and I didn't want to let myself down.
0:49:08 > 0:49:10I don't think you've let anyone down, Lee.
0:49:10 > 0:49:13One week over time is just fine.
0:49:13 > 0:49:16Two estate agents, including the one who came to see it before,
0:49:16 > 0:49:19are here to give their verdict.
0:49:19 > 0:49:21There's been considerable change in the property.
0:49:21 > 0:49:24The property's been redecorated throughout.
0:49:24 > 0:49:26It's had brand-new carpets.
0:49:26 > 0:49:29The rear of the property has been cleared
0:49:29 > 0:49:33and there's now access for a car to park at the rear of the property.
0:49:33 > 0:49:36First impression of the property is that it's got a good layout.
0:49:36 > 0:49:37It's got a nice-sized lounge
0:49:37 > 0:49:40which can also be used as a dining area as well.
0:49:40 > 0:49:42It's got a good-sized kitchen.
0:49:42 > 0:49:44You've got two good-sized bedrooms
0:49:44 > 0:49:47but you've also got plenty of extra storage space upstairs.
0:49:47 > 0:49:49Lee does intend this house to be rented
0:49:49 > 0:49:51and already rents properties out.
0:49:51 > 0:49:56He bought the house for £60,000 and spent £5,900,
0:49:56 > 0:49:59bringing his investment to a grand total of 65,900.
0:50:00 > 0:50:03What could the house fetch on the open market?
0:50:03 > 0:50:04In the current market,
0:50:04 > 0:50:07we would recommend an asking prize of £75,000.
0:50:07 > 0:50:12I would market the property at £74,950.
0:50:13 > 0:50:16If the property was to make 75,000,
0:50:16 > 0:50:20that would give Lee a pre-tax profit of just over £9,000.
0:50:22 > 0:50:27As a valuation goes, I'm in profit, so I'm happy with that, yeah.
0:50:27 > 0:50:29That's more or less what I was expecting.
0:50:31 > 0:50:35Lee's plan was always to rent this property. So what would he get?
0:50:37 > 0:50:39The property would achieve, in the current rental market,
0:50:39 > 0:50:42£450 per calendar month.
0:50:42 > 0:50:43In the current rental market,
0:50:43 > 0:50:48we'd recommend an asking price of £475 per calendar month.
0:50:48 > 0:50:52That top valuation of £475 per calendar month
0:50:52 > 0:50:54would give Lee a yield of nearly 9%.
0:50:54 > 0:50:58I reckon that's a pretty impressive return for five weeks' work.
0:50:59 > 0:51:02Perhaps, if I start at 475 advertisement,
0:51:02 > 0:51:05to agree a fee of 450, I'd be happy.
0:51:07 > 0:51:08So, what's next for Lee?
0:51:10 > 0:51:13I'm going to get the sun on my back, the sea on my feet,
0:51:13 > 0:51:16somewhere sunny like Tenerife.
0:51:16 > 0:51:19And just relax, have a rethink and I'll be back,
0:51:19 > 0:51:21no doubt, at the auction rooms.
0:51:25 > 0:51:28We head back to Scotland now to East Kilbride,
0:51:28 > 0:51:31which was one of the country's first post-war new towns.
0:51:31 > 0:51:36Neil and Sally bought the two-bed flat at auction for 46,000
0:51:36 > 0:51:38and it looked like an ideal buy-to-let.
0:51:38 > 0:51:41While the outside appearance left a bit to be desired,
0:51:41 > 0:51:45the inside seemed like a pretty straightforward renovation job
0:51:45 > 0:51:47in the three-month timescale.
0:51:47 > 0:51:50No reason to get overwrought then.
0:51:50 > 0:51:52I make wrought-iron gates and railings
0:51:52 > 0:51:56so I'm going to replace the balcony with something decorative.
0:51:56 > 0:51:58So you're the wrought iron man.
0:51:58 > 0:52:01You're going to bring that balcony to life.
0:52:01 > 0:52:04So, has Wrought Iron Man come to the rescue?
0:52:04 > 0:52:06Four months later, we've returned.
0:52:06 > 0:52:08I think he has.
0:52:08 > 0:52:10Neil has designed and built a balcony
0:52:10 > 0:52:15that adds a touch of romance to what was a rather utilitarian design.
0:52:15 > 0:52:19Music: Romeo and Juliet by Dire Straits
0:52:26 > 0:52:29# A love-stuck Romeo
0:52:29 > 0:52:32# Sings a streetsuss serenade. #
0:52:34 > 0:52:38The kitchen has been given a full overhaul and is looking good.
0:52:40 > 0:52:42Now what about the rest of the property?
0:52:58 > 0:53:00Well, this is the kitchen and, as you can see,
0:53:00 > 0:53:03it's been a good kitchen. We got a fantastic deal on it.
0:53:03 > 0:53:05Really pleased with the outcome.
0:53:05 > 0:53:09We've done the tiles, new worktops, the lot. Really happy with it.
0:53:09 > 0:53:13Go on, how much of a bargain are we talking for this new kitchen?
0:53:16 > 0:53:20I bought that off an internet site for a really good price of £500
0:53:20 > 0:53:22and I'm really delighted at how it's turned out.
0:53:24 > 0:53:27Impressive! 500 quid for a kitchen.
0:53:27 > 0:53:30And they've managed to move that boiler into the hall cupboard,
0:53:30 > 0:53:32giving more room.
0:53:32 > 0:53:35Meanwhile, it sounds like Sally went on a bit of a spending spree.
0:53:38 > 0:53:40And I bought another kitchen.
0:53:40 > 0:53:42So we've got enough for about five flats now.
0:53:42 > 0:53:44THEY LAUGH
0:53:46 > 0:53:50The bathroom was a bit dated, with a shell-design suite,
0:53:50 > 0:53:53but Sally and Neil have transformed it.
0:53:53 > 0:53:56We have completely ripped it out, put in a new suite,
0:53:56 > 0:53:59plastered the ceiling and had it tiled floor to ceiling.
0:54:02 > 0:54:03Remember those bumpy walls?
0:54:03 > 0:54:06Well, Neil promised his plasterer would work his magic,
0:54:06 > 0:54:09and he's been a wizard throughout.
0:54:09 > 0:54:13Throw in the full rewiring and the walls are smooth again.
0:54:13 > 0:54:14Best seen in the living room,
0:54:14 > 0:54:19although my favourite hatch has served its last meal and now gone.
0:54:19 > 0:54:23There was polystyrene tiles on two of the ceilings, which I believe
0:54:23 > 0:54:28are a fire hazard, so I removed them and it was then replastered.
0:54:36 > 0:54:40The tiles are off and two safe and bright bedrooms are now ready.
0:54:40 > 0:54:42New windows are in every room,
0:54:42 > 0:54:45and they're often the key to a rentable property.
0:54:46 > 0:54:49By and large, we've used tradesmen for most of the jobs,
0:54:49 > 0:54:53but we have carried out a lot of the manual work ourselves.
0:54:53 > 0:54:57Predominantly, Sally has done most of the hard physical work.
0:54:57 > 0:55:00Under my supervision, but, yes.
0:55:00 > 0:55:03We're quite pleased with the outcome.
0:55:03 > 0:55:07And best of all, they stuck to their ten grand budget.
0:55:07 > 0:55:09But how about the timescale?
0:55:09 > 0:55:11The timescale was initially three months,
0:55:11 > 0:55:13but that has risen to nearer four
0:55:13 > 0:55:17and the reason for that has been that we went on holiday for two weeks.
0:55:17 > 0:55:19And then we had a delay with the windows initially
0:55:19 > 0:55:21of another two weeks.
0:55:21 > 0:55:24- But four months has been pretty good. We're pretty happy.- Yeah.
0:55:24 > 0:55:27And we've also purchased another two properties in between times
0:55:27 > 0:55:30that we've been dealing with, so we've had our hands quite full.
0:55:32 > 0:55:34Well, those other flats might come in handy
0:55:34 > 0:55:36for all those kitchens Sally bought!
0:55:36 > 0:55:37Focusing on this property,
0:55:37 > 0:55:39two local property experts,
0:55:39 > 0:55:41one of whom visited before the renovation,
0:55:41 > 0:55:43are here to give us their views.
0:55:44 > 0:55:46It's been finished to a really high standard.
0:55:46 > 0:55:48They haven't cut back on anything.
0:55:48 > 0:55:51A good-sized kitchen, a nice style of kitchen as well,
0:55:51 > 0:55:52brand-new double glazing.
0:55:52 > 0:55:55They've even rewired the flat, which I think is important
0:55:55 > 0:55:56because of the age of these properties.
0:55:56 > 0:55:58A lot of them still have the old nylon wiring.
0:55:58 > 0:56:01I think the standard of finish on this property is very good.
0:56:01 > 0:56:04It fits in well with other properties on the market
0:56:04 > 0:56:05in this area.
0:56:05 > 0:56:08Sally and Neil bought the flat for 46,000
0:56:08 > 0:56:13and they've spent 10,000 making a grand total of £56,000.
0:56:13 > 0:56:17So what do the agents think it could sell for on the open market?
0:56:17 > 0:56:19I believe that the property would probably home report
0:56:19 > 0:56:23at somewhere in the region of about 65 to £70,000.
0:56:23 > 0:56:26I would expect it to achieve £63,000.
0:56:27 > 0:56:32A top valuation of 70,000 would mean a potential profit of 14 grand,
0:56:32 > 0:56:36while the lower valuation would mean a profit of £7,000
0:56:36 > 0:56:38minus taxes and expenses.
0:56:38 > 0:56:40What do they make of that?
0:56:40 > 0:56:44Yeah, we thought about 65,000 was roundabout the market rent.
0:56:44 > 0:56:47Sorry, the market valuation.
0:56:47 > 0:56:51We've done an identical property just a short distance from here
0:56:51 > 0:56:53and that's a similar valuation.
0:56:54 > 0:56:57Neil and Sally have always planned to rent the property
0:56:57 > 0:57:00and have some ambitious figures in mind.
0:57:02 > 0:57:06We always try to purchase property that we can renovate
0:57:06 > 0:57:08to a high standard, and ideally,
0:57:08 > 0:57:12we're looking for a rental income of between 10 and 12%
0:57:12 > 0:57:15depending on the final figures,
0:57:15 > 0:57:18I believe we're going to come in about 9.5% rental yield
0:57:18 > 0:57:20on our costs and refurbishment.
0:57:22 > 0:57:25So do Neil's calculations add up?
0:57:25 > 0:57:28I'd expect to achieve £450 per calendar month.
0:57:28 > 0:57:31In this area, the rental sort of income that you'll get is
0:57:31 > 0:57:34somewhere in the region of about £450.
0:57:35 > 0:57:37Spot on, Neil.
0:57:37 > 0:57:42£450 per calendar month gives them a yield of 9.6%.
0:57:42 > 0:57:44They're cooking with gas now.
0:57:45 > 0:57:48Yeah, we feel that 450 is bang on the money.
0:57:48 > 0:57:52We've got an identical property to this and we're getting £450.
0:57:53 > 0:57:57So what advice can our iron-clad property developers give us?
0:57:58 > 0:58:00Any advice that I'd give to anybody
0:58:00 > 0:58:02that's thinking of entering the property market is,
0:58:02 > 0:58:05always remember to work to a budget.
0:58:05 > 0:58:08You've got to realise that you're not dealing with your own house.
0:58:08 > 0:58:09It's a rental property.
0:58:09 > 0:58:12However, people expect top-quality standards nowadays,
0:58:12 > 0:58:15so I'd always say, do the best you can to a high standard.
0:58:18 > 0:58:20Well, that's it for today's show.
0:58:20 > 0:58:23We'll be back next time with more stories from the auction rooms.
0:58:23 > 0:58:26Look forward to seeing you then for more Homes Under The Hammer.
0:58:26 > 0:58:27- Goodbye for now.- Goodbye.- Bye.