0:00:02 > 0:00:03Martin and I are both mad about property.
0:00:03 > 0:00:05It doesn't matter how much you know,
0:00:05 > 0:00:07there is always something new to learn.
0:00:07 > 0:00:09Yes, every property is different.
0:00:09 > 0:00:11And of course, let's not forget the people who buy them.
0:00:11 > 0:00:13They're all different, too.
0:00:13 > 0:00:15Lucy, me, you...
0:00:42 > 0:00:46Well, thousands of properties are sold under the hammer every year.
0:00:46 > 0:00:49So, there's something to suit all tastes and budgets.
0:00:49 > 0:00:53So, let's see what's on offer at the auctions on today's show.
0:00:54 > 0:00:56First up, in Burton-on-Trent,
0:00:56 > 0:00:59one buyer chooses a property complete with tenant.
0:00:59 > 0:01:03Looks like we've really got a friendly pet tortoise.
0:01:05 > 0:01:09While here in Deal, Kent, the choice is a bit more industrial.
0:01:10 > 0:01:13So, what are we looking at? A building plot, of course.
0:01:15 > 0:01:18But, in Maryport, in Cumbria, the question is...
0:01:19 > 0:01:23- Tell me why you wanted to buy this property?- God knows!
0:01:23 > 0:01:24That's a good start!
0:01:26 > 0:01:28All these properties are being sold at auction.
0:01:28 > 0:01:31We'll find out who bought them and what they paid for them
0:01:31 > 0:01:34when they went under the hammer.
0:01:38 > 0:01:41The town of Burton-upon-Trent in Staffordshire
0:01:41 > 0:01:43is probably best-known for its brewing heritage.
0:01:43 > 0:01:47In its heyday, there were around 12 breweries here
0:01:47 > 0:01:51producing, between them, over a quarter
0:01:51 > 0:01:54of the total amount of beer brewed in Britain.
0:01:55 > 0:01:59# And I want to thank you
0:02:00 > 0:02:05# For giving me the best day of my life... #
0:02:07 > 0:02:08I'm sure, in the past,
0:02:08 > 0:02:12a fair few residents of the UK were thanking Burton.
0:02:12 > 0:02:16But, alas, we're not here to stop at the town's Brewing Experience Museum.
0:02:16 > 0:02:20So, it's time to drink up and see what property Burton has to offer.
0:02:21 > 0:02:23Last orders, please.
0:02:25 > 0:02:27Well, a couple of miles from the centre of Burton,
0:02:27 > 0:02:32in the popular suburb of Winshill, is the property I'm here to see.
0:02:32 > 0:02:37£56,000 plus was the guide price for a classic two-bedroomed mid-terrace.
0:02:39 > 0:02:42On a fairly busy road. That's not ideal.
0:02:42 > 0:02:45And how about that for a front step?
0:02:45 > 0:02:46Wow!
0:02:48 > 0:02:50So, I guess the obvious question is,
0:02:50 > 0:02:53will the house be a step up the property ladder?
0:02:53 > 0:02:55Well, maybe.
0:02:55 > 0:02:59In through the door, up the step and into your living room. Nice size.
0:02:59 > 0:03:01Nice, high ceilings.
0:03:01 > 0:03:04Obviously, though, without any porch or anything like that,
0:03:04 > 0:03:06you are going to get a lot of noise from that road.
0:03:06 > 0:03:08So, maybe triple glazing at the front there.
0:03:08 > 0:03:10But it doesn't smell damp.
0:03:10 > 0:03:12It doesn't seem to be in too bad condition.
0:03:12 > 0:03:15Door there, down to the cellar.
0:03:15 > 0:03:17And that's a nice, additional bonus.
0:03:17 > 0:03:19And then through into your rear living room area.
0:03:19 > 0:03:22The floor seems pretty solid, so that's good news.
0:03:22 > 0:03:24Slight disappointment, the kitchen.
0:03:24 > 0:03:26Originally, it would have been here.
0:03:26 > 0:03:28Somebody's built some kind of extension, at some point.
0:03:28 > 0:03:30It's in the back there.
0:03:30 > 0:03:33So, as starting points go? Not bad.
0:03:34 > 0:03:36# Step it up, step it up, it's all right... #
0:03:38 > 0:03:43Apart from that enormous front step, there's nothing too problematic here.
0:03:43 > 0:03:46You could even make a feature of that period kitchen furniture,
0:03:46 > 0:03:48if you were feeling brave.
0:03:48 > 0:03:52For me, a good modernisation is all it would take to sort this out.
0:03:54 > 0:03:57Well, upstairs, there is a fairly classic layout.
0:03:57 > 0:03:59A little landing at the top of the stairs.
0:03:59 > 0:04:02And then one bedroom one way and one bedroom the other.
0:04:02 > 0:04:04Both half-decent sized, which is good.
0:04:04 > 0:04:08But there's one thing we haven't found yet.
0:04:08 > 0:04:10And that's the bathroom.
0:04:10 > 0:04:15And I'm afraid, the bad news is that it's accessed through this bedroom.
0:04:16 > 0:04:18If you're looking for the property to appeal
0:04:18 > 0:04:20to as many people as possible,
0:04:20 > 0:04:24I'm afraid a bathroom that only has access through a bedroom is a no-no,
0:04:24 > 0:04:27especially if you're looking to rent the property.
0:04:27 > 0:04:29In this case, though, creating a corridor
0:04:29 > 0:04:33between the landing and the bathroom is an easy fix.
0:04:33 > 0:04:37Just remember to account for the cost in your budget.
0:04:38 > 0:04:42Well, at the back of the property, this little yard area.
0:04:42 > 0:04:46Quite a nice... You've got an outdoor loo. And then the garden.
0:04:46 > 0:04:49However, all is not what it seems.
0:04:49 > 0:04:51Because you think, wow, what an amazing garden!
0:04:51 > 0:04:54However, it's shared with the next-door neighbour.
0:04:54 > 0:04:57Basically, it's split down the middle here, on this path.
0:04:57 > 0:05:00So, I guess you're going to have to get on well with your neighbours
0:05:00 > 0:05:03and hope, like it is in this instance,
0:05:03 > 0:05:06that whoever is your neighbour, looks after their side.
0:05:06 > 0:05:10And in this case, it's absolutely beautiful. But it's a nice space.
0:05:10 > 0:05:12And an added bonus,
0:05:12 > 0:05:15it looks like we've even got a friendly pet tortoise.
0:05:15 > 0:05:20# Any time you choose Kick off your shoes
0:05:20 > 0:05:25# Rest your weary eyes and catch up with the news
0:05:25 > 0:05:31# A favourite book will be the perfect company, so relax... #
0:05:31 > 0:05:35Will everyone appreciate it as much as this local resident?
0:05:35 > 0:05:37It's a little rude to give someone's age away,
0:05:37 > 0:05:41but this chap is 52 years old.
0:05:41 > 0:05:44So, that makes me an old-age mentioner!
0:05:45 > 0:05:49Sorry. Anyway, a local auctioneer hared along to tell us more.
0:05:49 > 0:05:51My first impressions of the property are,
0:05:51 > 0:05:53I think it's a good, honest, solid property.
0:05:53 > 0:05:56And it offers an excellent opportunity for somebody
0:05:56 > 0:05:58to put their own mark on it and, certainly, to add value.
0:06:00 > 0:06:02A solid house in a good area, then.
0:06:02 > 0:06:08This two-bedroomed terraced house has a guide price of £56,000 plus.
0:06:08 > 0:06:11What does he think it will be worth, once renovated?
0:06:11 > 0:06:13I would say, once renovated,
0:06:13 > 0:06:16this property would achieve somewhere in the region of £85,000.
0:06:16 > 0:06:19And if I were looking to offer this property to the rental market,
0:06:19 > 0:06:21then I would imagine a fair rent would be
0:06:21 > 0:06:25somewhere in the region of £475 per calendar month.
0:06:27 > 0:06:30Well, a really nice house in a popular area.
0:06:30 > 0:06:33Yes, a bit of noise from the road out the front.
0:06:33 > 0:06:34But, apart from that, a great one to go for.
0:06:34 > 0:06:38Let's see if you agree when it went under the hammer.
0:06:38 > 0:06:42A two-bedroomed terraced house, good potential to it.
0:06:42 > 0:06:45How much shall I say for it today, ladies and gentlemen? 54? Thank you.
0:06:45 > 0:06:48£54,000, I have, on the right-hand side.
0:06:48 > 0:06:5055. 55.
0:06:50 > 0:06:5256. 57.
0:06:52 > 0:06:5458.
0:06:54 > 0:06:5559.
0:06:55 > 0:06:5660,000.
0:06:56 > 0:06:5861.
0:06:58 > 0:06:5962?
0:06:59 > 0:07:0161,000, in front of me.
0:07:01 > 0:07:03I'll take 500, if it'll help you.
0:07:03 > 0:07:05It's in the market. It's going to get sold.
0:07:05 > 0:07:0661,500 somewhere else?
0:07:06 > 0:07:12At £61,000, then. It's going to go for the first time, at 61.
0:07:12 > 0:07:14For the second time, at 61. Third opportunity.
0:07:14 > 0:07:15Anybody? Any higher bid?
0:07:17 > 0:07:18Sold at 61,000.
0:07:18 > 0:07:21The successful bid of £61,000
0:07:21 > 0:07:24came from local pair, Sue and her partner Andy.
0:07:24 > 0:07:27Sue already has a property portfolio.
0:07:28 > 0:07:30So, no doubt, she found this terrace
0:07:30 > 0:07:35after scouring through auction catalogue after auction catalogue.
0:07:37 > 0:07:39Well, not exactly.
0:07:40 > 0:07:43- Andy, Sue, great to meet you both. - Nice to meet you.- Nice to meet you.
0:07:43 > 0:07:45- Congratulations. - Thank you very much.- Yeah.
0:07:45 > 0:07:47Tell me why you wanted to buy this place.
0:07:47 > 0:07:52- I live just up the road and I do this, actually, for a living.- Right.
0:07:52 > 0:07:53It started as a hobby.
0:07:53 > 0:07:56But I came to take my granddaughter to school
0:07:56 > 0:07:59and I saw the sign outside, so I thought, "Oh, got to have a look."
0:07:59 > 0:08:01And is it normally buy them and sell them on?
0:08:01 > 0:08:03No, I buy everything and rent it.
0:08:03 > 0:08:07But this is a new portfolio-type thing.
0:08:07 > 0:08:12I'm buying this to renovate to a good standard and sell on.
0:08:12 > 0:08:15Right. So why the change of strategy?
0:08:15 > 0:08:17Sometimes, I find tenants hard work.
0:08:17 > 0:08:18Right.
0:08:18 > 0:08:22And... I've got some wonderful tenants.
0:08:22 > 0:08:24But it is hard work.
0:08:24 > 0:08:28So, I just want to buy something, concentrate on renovating it,
0:08:28 > 0:08:31getting money back and do this and go again.
0:08:31 > 0:08:34# That's what I go to school for... #
0:08:36 > 0:08:37Well, if Sue makes a healthy profit,
0:08:37 > 0:08:40she won't complain about the school run again.
0:08:40 > 0:08:42It goes to show that experienced developers
0:08:42 > 0:08:46are always looking for the next potential opportunity.
0:08:46 > 0:08:48Sue has been doing this for 25 years,
0:08:48 > 0:08:51along with a significant amount of charity work.
0:08:51 > 0:08:53But she was originally a fashion model.
0:08:55 > 0:08:57Erm, I think, when you walk into a property,
0:08:57 > 0:09:00it either feels good or you think, no.
0:09:00 > 0:09:02And that often happens to me.
0:09:02 > 0:09:05And I walked in here and I thought, five minutes,
0:09:05 > 0:09:07yes, I'm going for this.
0:09:07 > 0:09:08What did you think of it, Andy?
0:09:08 > 0:09:12Just like Sue says, it's got that good feel to it.
0:09:12 > 0:09:15The decor is not good, but we do houses to a good standard.
0:09:15 > 0:09:18- Tell me what you're going to do to it, then.- From top to bottom.
0:09:18 > 0:09:22It's going to have to have the roof checked.
0:09:22 > 0:09:24We want lagging in the roof.
0:09:24 > 0:09:27We always start at the top and work our way down.
0:09:27 > 0:09:29Brand-new bathroom.
0:09:29 > 0:09:31Bedrooms all sorted out.
0:09:31 > 0:09:34- But we're putting a passageway in the second bedroom.- Ah...- Yes.
0:09:34 > 0:09:39So, we're just going to put a stud wall, partition it off,
0:09:39 > 0:09:42and the bedroom will still be sized for a double bed.
0:09:42 > 0:09:45Out the back, you've got this quite interesting garden,
0:09:45 > 0:09:47that's split down the middle with the neighbour.
0:09:47 > 0:09:49It's lovely. These are the gardens round here.
0:09:49 > 0:09:51- This is what they're like. - It's charming.
0:09:51 > 0:09:54And, obviously, the gentleman who owns next door
0:09:54 > 0:09:56obviously does a fantastic job of sorting his side.
0:09:56 > 0:10:00Yes. Yes. And he loves doing it.
0:10:00 > 0:10:02So, when I bought at the auction,
0:10:02 > 0:10:06I came and said that I was coming to renovate it
0:10:06 > 0:10:08and thanked him for doing the garden.
0:10:08 > 0:10:09And he's done it since, so...
0:10:09 > 0:10:12Has he? Oh, excellent. That's fantastic.
0:10:12 > 0:10:15- And he's got a 52-year-old tortoise.- Thomas.
0:10:15 > 0:10:17Thomas the tortoise.
0:10:17 > 0:10:20- So, he'll be keeping an eye on things.- Yes.- Er, no doubt.
0:10:22 > 0:10:23The house is an investment.
0:10:23 > 0:10:26But Sue and Andy sound quite fond of it
0:10:26 > 0:10:29and its helpful and charming neighbours.
0:10:29 > 0:10:31If the lovely garden, a smashing neighbour
0:10:31 > 0:10:33and reconfigured bathroom don't add value,
0:10:33 > 0:10:35I think a guard tortoise just might.
0:10:36 > 0:10:38So, what's the budget for all the work?
0:10:38 > 0:10:42- I think about £10,000.- Right.
0:10:42 > 0:10:46It usually works out about that with these type of terraced houses.
0:10:46 > 0:10:48I've got a good team that have worked with me a long time,
0:10:48 > 0:10:52decorators, plumbers, electricians.
0:10:52 > 0:10:55I don't touch things that are either going to blow me up or hurt!
0:10:56 > 0:10:58Fair enough.
0:10:58 > 0:11:01I'm glad to hear that Sue is clearly a switched-on developer.
0:11:01 > 0:11:05You can't do better than have a reliable team you know and trust,
0:11:05 > 0:11:07which means this should be pretty straightforward
0:11:07 > 0:11:09in her two-month timescale.
0:11:09 > 0:11:12How much do you think you might be able to sell it for?
0:11:12 > 0:11:16I think, looking at the local area, about 89,950.
0:11:16 > 0:11:19The one across the road's just sold for 92...
0:11:19 > 0:11:21- Right.- ..I believe.
0:11:21 > 0:11:25- Right.- So, I think there's profit in it to do it properly and erm...
0:11:25 > 0:11:27- So, you paid?- 61.
0:11:27 > 0:11:28- 61. Plus your ten. 71.- Yes.
0:11:28 > 0:11:32So, there may be 15-20 grand in it, if you can...
0:11:32 > 0:11:34I hope so. I hope so.
0:11:34 > 0:11:38It might be a hobby, but it's got to weigh up!
0:11:41 > 0:11:43Sue is spot on. Don't forget your bottom line.
0:11:43 > 0:11:46Don't forget how much hard work it's going to be.
0:11:46 > 0:11:50And don't forget you will need professionals for certain jobs.
0:11:50 > 0:11:52Phew! She's full of good advice. She'll do me out of a job.
0:11:52 > 0:11:55I may as well get some more, while I'm here.
0:11:58 > 0:12:01So, what do you think the most important lesson you've learned
0:12:01 > 0:12:03in your 25 years of doing this is?
0:12:03 > 0:12:05- Always read your legal pack.- Yes.
0:12:07 > 0:12:09- I've learned that from Homes Under The Hammer.- Oh, good girl!
0:12:09 > 0:12:11Yes. Absolutely.
0:12:11 > 0:12:13Well, listen, congratulations. Good luck with it.
0:12:13 > 0:12:16- Thank you very much.- We look forward to seeing how you get on.
0:12:18 > 0:12:21Well, this project should be water off a duck's back
0:12:21 > 0:12:24for property old-timers Sue and Andy.
0:12:24 > 0:12:27But there's only one person I'm interested to find out
0:12:27 > 0:12:31what they think of the renovation and that's Tommy the tortoise.
0:12:31 > 0:12:34You can find out how it all goes later in the show.
0:12:38 > 0:12:40This is Deal, in Kent.
0:12:40 > 0:12:43Once a busy shipping port, it's now a quiet seaside town,
0:12:43 > 0:12:47with a glorious stretch of beach and some lovely views.
0:12:51 > 0:12:54A mile from the beach is the lot I'm here to see.
0:12:54 > 0:12:59And it's this - a former St John's Ambulance headquarters,
0:12:59 > 0:13:01eight garages and a store.
0:13:01 > 0:13:05Now, I'm aware the main building hasn't been used for several years
0:13:05 > 0:13:07and, well, the whole site's seen better days.
0:13:07 > 0:13:09So, what are we looking at?
0:13:09 > 0:13:11A building plot, of course,
0:13:11 > 0:13:15which had a guide price of 100,000 to 105,000.
0:13:21 > 0:13:23Let's see what we've got.
0:13:23 > 0:13:28Basically, we have an L-shaped site with two road frontages.
0:13:28 > 0:13:31One on the main street and one on the side.
0:13:31 > 0:13:32Fabulous.
0:13:34 > 0:13:35There are eight lock-up garages,
0:13:35 > 0:13:38which haven't done much locking up lately.
0:13:38 > 0:13:40And a large storeroom, with no door.
0:13:41 > 0:13:46And this tired, old hall, which used to be home to St John's Ambulance.
0:13:47 > 0:13:49# Doctor, doctor
0:13:49 > 0:13:50# Give me the news
0:13:50 > 0:13:53# I got a bad case of loving you... #
0:13:55 > 0:13:57It's dilapidated and weedy,
0:13:57 > 0:14:01but that planning permission could resuscitate this site.
0:14:04 > 0:14:06So, what have we got?
0:14:06 > 0:14:08Well, the planning permission
0:14:08 > 0:14:11is for a row of three three-bedroom terraces
0:14:11 > 0:14:14and one detached two-bedroom house.
0:14:14 > 0:14:17Now, the reason you have this slightly odd arrangement
0:14:17 > 0:14:20is the shape of the plot, which is a dogleg.
0:14:20 > 0:14:22So, the terraces go along that side
0:14:22 > 0:14:25and the detached sneaks in along the back here.
0:14:25 > 0:14:28Now, the designs themselves are actually very nice.
0:14:28 > 0:14:30I love the layout downstairs.
0:14:30 > 0:14:31You've got a nice, big lounge,
0:14:31 > 0:14:34then a kitchen at the back with a dining area.
0:14:34 > 0:14:35And I really like that.
0:14:35 > 0:14:37You've got a cupboard here, a cupboard there.
0:14:37 > 0:14:39Nice and practical, actually.
0:14:39 > 0:14:43Then, upstairs, three good-sized bedrooms, a family bathroom
0:14:43 > 0:14:45and an en suite
0:14:45 > 0:14:47and a walk-in wardrobe storage area.
0:14:47 > 0:14:48Love it!
0:14:48 > 0:14:52Whoever designed these, really thought about how families live.
0:14:52 > 0:14:54I'm impressed.
0:14:55 > 0:14:57# Congratulations
0:14:57 > 0:14:59# I'm impressed
0:14:59 > 0:15:02# All you had to do was beat the best... #
0:15:02 > 0:15:06The busy road to one side of the site could put potential buyers off,
0:15:06 > 0:15:08as could the small gardens in the plans.
0:15:08 > 0:15:11However, with the planning permission in place,
0:15:11 > 0:15:15I can't see anyone wanting to return the hall to its former glory.
0:15:15 > 0:15:18Whatever happens, it's likely to become residential.
0:15:18 > 0:15:22However, as with any development, it's all about the maths.
0:15:23 > 0:15:27Is there good potential profit if these plans were to be carried out?
0:15:27 > 0:15:29We've asked a local estate agent along,
0:15:29 > 0:15:31to give us his opinions on the plans.
0:15:32 > 0:15:35I think the plans that are approved are good for this site.
0:15:35 > 0:15:37They're good, interesting houses
0:15:37 > 0:15:39and will be appropriate for the location.
0:15:39 > 0:15:41The only other use this site
0:15:41 > 0:15:44is some other form of residential, maybe flats.
0:15:44 > 0:15:46That would be best in this market.
0:15:46 > 0:15:49If you want to let, I think I'd put flats.
0:15:49 > 0:15:51If you want to sell, I think I would build houses.
0:15:52 > 0:15:53Now, that's intriguing.
0:15:53 > 0:15:57However, attempting to change the planning permission would cost time and money.
0:15:57 > 0:16:00So, how do the options compare financially?
0:16:00 > 0:16:02For the houses that are proposed here currently,
0:16:02 > 0:16:08they are going to have a value of about 185,000 to £190,000.
0:16:08 > 0:16:10And the detached one would be about the same
0:16:10 > 0:16:13because it's slightly smaller, but is detached.
0:16:13 > 0:16:14Based on those top valuations,
0:16:14 > 0:16:19four houses here could have a total value of £760,000.
0:16:19 > 0:16:20Wow!
0:16:20 > 0:16:24If you got the site for anything like the guide price of 100 to 105
0:16:24 > 0:16:28and allow, say, 300,000 for build costs,
0:16:28 > 0:16:32that would be a total spend of around £400,000.
0:16:32 > 0:16:37That means there is a potential profit of 360 grand in this project.
0:16:37 > 0:16:39Definitely worth doing.
0:16:39 > 0:16:42But what about the option for flats that the agent mentioned?
0:16:43 > 0:16:45If they were flats, they would be less.
0:16:45 > 0:16:49A one-bedroom flat would be about 100 to 110.
0:16:49 > 0:16:52And a two-bedroom flat would be about £110,000 to £120,000.
0:16:53 > 0:16:55And what would a flat here rent for?
0:16:55 > 0:16:57If flats were built here,
0:16:57 > 0:17:01they would let for £450 per calendar month for a one-bed
0:17:01 > 0:17:05and £500 to £550 per calendar month for a two-bed.
0:17:06 > 0:17:10This is a nice plot in a decent enough residential area
0:17:10 > 0:17:14with money to be made, if bought for the right price.
0:17:14 > 0:17:17Let's see what that was at the auction.
0:17:22 > 0:17:24It's the former St John's premises and garages
0:17:24 > 0:17:27and it's got the planning for the redevelopment
0:17:27 > 0:17:30for the terrace of three and the detached house.
0:17:30 > 0:17:32So, I'm going to say £100,000 for it.
0:17:32 > 0:17:34£100,000. Where's my builders?
0:17:34 > 0:17:36£100,000 can I say?
0:17:36 > 0:17:38Give me 90, then. Start me at £90,000.
0:17:38 > 0:17:4190, I'm bid. 95 bid, I have.
0:17:41 > 0:17:43£100,000, I'm bid.
0:17:43 > 0:17:45105, now, if you like. At £100,000.
0:17:45 > 0:17:48105, right at the back, I've got.
0:17:48 > 0:17:49108.
0:17:49 > 0:17:51110, standing at the back.
0:17:51 > 0:17:52110, can I see?
0:17:52 > 0:17:54110.
0:17:54 > 0:17:55And 12.
0:17:55 > 0:17:56And 14.
0:17:56 > 0:17:58And 14.
0:17:58 > 0:17:59114.
0:17:59 > 0:18:00And 16.
0:18:00 > 0:18:03With some cagey bidding going on, we leave it there
0:18:03 > 0:18:06and return at £142,000.
0:18:07 > 0:18:10142. And four. And six.
0:18:11 > 0:18:13146. And eight. And 50.
0:18:13 > 0:18:1650. And two. And four.
0:18:16 > 0:18:17And six. And eight.
0:18:18 > 0:18:20158?
0:18:20 > 0:18:22At £156,000, I've got.
0:18:22 > 0:18:24158, anywhere else?
0:18:24 > 0:18:27If not, at £156,000, for the first time.
0:18:28 > 0:18:30156, for the second time.
0:18:31 > 0:18:33Third and final time, at £156,000.
0:18:33 > 0:18:36Well done, madam, you've stuck with it and you got it.
0:18:38 > 0:18:41Sticking with the bidding was Tracey and her builder Paul.
0:18:42 > 0:18:46That successful bid of £156,000
0:18:46 > 0:18:50smashed the guide price by over 50 grand.
0:18:50 > 0:18:54Tracey has been on the show before with her business partner Martin.
0:18:54 > 0:18:57Their property business currently has 21 properties,
0:18:57 > 0:18:59which they rent out.
0:18:59 > 0:19:02However, not only is Martin her business partner,
0:19:02 > 0:19:03he's also her boss.
0:19:03 > 0:19:06He's a criminal lawyer and Tracey has worked with him
0:19:06 > 0:19:09for over 20 years in her nine-to-five job.
0:19:10 > 0:19:12# Working nine to five
0:19:12 > 0:19:14# What a way to make a living
0:19:14 > 0:19:19# Well, we're getting by, it's all taking and no giving... #
0:19:19 > 0:19:24Tracey, we meet again. I think it was 2008 the last time we met.
0:19:24 > 0:19:28- That's right, in Dover.- So have you been property developing ever since?
0:19:28 > 0:19:30Back in that time, we'd done a bit of renovation work.
0:19:30 > 0:19:33But, since then, we've been doing new-build properties.
0:19:33 > 0:19:34Building flats around Dover.
0:19:34 > 0:19:38So, what was it that took your eye about this particular site?
0:19:38 > 0:19:40Well, we had looked at it in the past,
0:19:40 > 0:19:43when it came up for auction once before.
0:19:43 > 0:19:44But, at that time,
0:19:44 > 0:19:46we were in the middle of doing a 12-flat development in Dover,
0:19:46 > 0:19:48so it wasn't quite the right time to buy.
0:19:48 > 0:19:50And when we saw it come back again this time,
0:19:50 > 0:19:52we just couldn't miss the opportunity.
0:19:52 > 0:19:54The thing that took my eye about this plot
0:19:54 > 0:19:56is the planning that comes with it.
0:19:56 > 0:19:57You've got a really nice house at the back.
0:19:57 > 0:19:59A nice, big detached house.
0:19:59 > 0:20:02And three nice houses that sit in the front.
0:20:02 > 0:20:04Is that something, or was that something,
0:20:04 > 0:20:07that particularly appealed to you with this?
0:20:07 > 0:20:09We like the idea that it's got planning on it.
0:20:09 > 0:20:12But it wouldn't appeal to us to have that particular planning on it,
0:20:12 > 0:20:15because we tend to specialise in building flats,
0:20:15 > 0:20:17because we don't sell our properties on,
0:20:17 > 0:20:18we deal with the rental market.
0:20:18 > 0:20:21And we find the rental return on flats
0:20:21 > 0:20:23is much better than it is on houses.
0:20:23 > 0:20:27- So, you're not going to go with the plans that come with this site?- No.
0:20:27 > 0:20:29We've already spoken to an architect
0:20:29 > 0:20:34and he's drafted plans with the potential of nine flats on the site.
0:20:34 > 0:20:35Wow! That's incredible.
0:20:35 > 0:20:39I'm stunned, actually, that you're not going to go with the plans that were here.
0:20:39 > 0:20:42Because I actually thought, looking at them, they were quite good.
0:20:42 > 0:20:45- And they'd really been thought about.- Well, they had.
0:20:45 > 0:20:46And if you are selling the properties,
0:20:46 > 0:20:48then that would probably be the way forward.
0:20:48 > 0:20:51But, if you want a good rental return on what you're building on the site,
0:20:51 > 0:20:54then, to build two-bedroom flats in Deal,
0:20:54 > 0:20:57it's a very sought-after rental area here.
0:20:58 > 0:21:00Tracey certainly knows her stuff.
0:21:00 > 0:21:02But you'd think working full-time
0:21:02 > 0:21:05with business partner Martin in criminal law
0:21:05 > 0:21:08and taking on a project this size,
0:21:08 > 0:21:11she'd have enough on her plate without creating new plans.
0:21:13 > 0:21:15So, have you spoken to the planners?
0:21:15 > 0:21:17Have they, like, given you any indication
0:21:17 > 0:21:19whether or not they'll pass something like this?
0:21:19 > 0:21:23The architects had an initial chat with the person from the council
0:21:23 > 0:21:28and it's looking very hopeful that they will agree the new plans.
0:21:28 > 0:21:30Well, how much will it cost to build
0:21:30 > 0:21:32what you're looking to do on this site?
0:21:32 > 0:21:38Generally speaking, we estimate about 70,000 per unit.
0:21:38 > 0:21:42- OK.- So, we've got two separate units, phase one and phase two.
0:21:42 > 0:21:47Phase one, of the five units, you'd be looking at about 350,000.
0:21:47 > 0:21:51And the second of the four units, that's about 280,000.
0:21:51 > 0:21:52Wow!
0:21:54 > 0:21:57Now, this might feel like a lot of numbers,
0:21:57 > 0:22:01but stay with me all the way to the bottom line.
0:22:01 > 0:22:02Nine rental properties
0:22:02 > 0:22:05could mean a rental yield of nearly 9%.
0:22:06 > 0:22:08Tracey certainly has a business head on her,
0:22:08 > 0:22:10but this project isn't without
0:22:10 > 0:22:12its little sentimental sting in the tail.
0:22:15 > 0:22:19Well, I grew up in the north end of Deal.
0:22:19 > 0:22:21So, I was fairly familiar with this end of Deal
0:22:21 > 0:22:24and it was only after I'd bought this place at the auction
0:22:24 > 0:22:26and I was telling my family about it
0:22:26 > 0:22:28that I found out that my parents had their wedding reception here
0:22:28 > 0:22:30back in 1968.
0:22:30 > 0:22:33That is amazing to think that, once upon a time,
0:22:33 > 0:22:35they sat in here having a wedding reception
0:22:35 > 0:22:37and now you're going to knock it down!
0:22:37 > 0:22:39How do they feel about that?
0:22:39 > 0:22:41I did ask if they wanted to come
0:22:41 > 0:22:44and have one final look down, for memory, old time's sake,
0:22:44 > 0:22:46but they said it was pretty grotty back in 1968
0:22:46 > 0:22:48and it wouldn't have improved since then.
0:22:48 > 0:22:51And now here you are, you're about to improve it completely.
0:22:51 > 0:22:53I think the best thing we can do with this is knock it down.
0:22:53 > 0:22:56How long do think it's going to be before this development is finished?
0:22:56 > 0:23:00I would think it would be about 20 weeks until we got the plans through
0:23:00 > 0:23:01and we're in a position to proceed.
0:23:01 > 0:23:06And then, phase one, I would think is about six months, 26 weeks.
0:23:06 > 0:23:09And similar or less for phase two.
0:23:09 > 0:23:11- Well, good luck.- Thank you.
0:23:11 > 0:23:12It's going to be really exciting
0:23:12 > 0:23:14coming back and seeing this not being here
0:23:14 > 0:23:16and a lovely block of flats in its place.
0:23:16 > 0:23:17Good luck with the project.
0:23:17 > 0:23:20- And, hopefully, it won't be so long the next time I see you.- No.
0:23:20 > 0:23:22Thanks very much. Thank you.
0:23:23 > 0:23:27So, another block of flats for Tracey.
0:23:27 > 0:23:29Seems to be a winning formula.
0:23:29 > 0:23:32It's such a shame these nice houses won't see the light of day,
0:23:32 > 0:23:35but I do hope they get the planning permission they want.
0:23:35 > 0:23:37There's certainly money in it.
0:23:37 > 0:23:40You can find out what happens later in the show.
0:23:41 > 0:23:43Still to come...
0:23:43 > 0:23:45In Maryport, Cumbria, I think I've spotted the problem.
0:23:46 > 0:23:48Urgh!
0:23:48 > 0:23:49Oh, that's not good.
0:23:53 > 0:23:57And over in Deal, Kent, best-laid plans have stalled in the erm...
0:23:57 > 0:23:59..planning office.
0:24:08 > 0:24:11Back now to the town of Burton-upon-Trent in Staffordshire,
0:24:11 > 0:24:15where I earlier looked around this two-bedroom mid-terrace property
0:24:15 > 0:24:18that had a guide price of £56,000.
0:24:22 > 0:24:25A solid, traditional property in need of updating.
0:24:25 > 0:24:27And it had one inconvenient element.
0:24:29 > 0:24:31And that's the bathroom.
0:24:31 > 0:24:36And I'm afraid, the bad news is that it's accessed through this bedroom.
0:24:36 > 0:24:39So, not ideal, at all.
0:24:39 > 0:24:42Yes, it certainly was a problem that needed fixing
0:24:42 > 0:24:45and the person who was feeling flush enough to do it on auction day
0:24:45 > 0:24:48was Sue and her partner Andy.
0:24:50 > 0:24:51Sold at 61,000.
0:24:52 > 0:24:56Experienced property developer Sue took the property on a gut feeling
0:24:56 > 0:24:59and she and Andy had figured out the solution
0:24:59 > 0:25:01for the bathroom problem straight away.
0:25:03 > 0:25:07- We're putting a passageway in the second bedroom.- Ah...- Yes.
0:25:07 > 0:25:11So, we're just going to put a stud wall, partition it off
0:25:11 > 0:25:15and the bedroom will still be sized for a double bed.
0:25:15 > 0:25:18A big bonus of the property was the beautiful back garden,
0:25:18 > 0:25:20which had been lovingly maintained by the neighbour
0:25:20 > 0:25:24and his 50-year-old tortoise, Thomas.
0:25:24 > 0:25:26So, with a £10,000 budget
0:25:26 > 0:25:27and a timescale of two months
0:25:27 > 0:25:30to get the property ready for the sales market,
0:25:30 > 0:25:32Sue and Andy were raring to get going.
0:25:37 > 0:25:42Five months later, we returned to see just how things had come along.
0:26:04 > 0:26:08The downstairs has been transformed, from dull and dated,
0:26:08 > 0:26:10to modern and aspirational.
0:26:10 > 0:26:13The feature fireplaces in the two reception rooms
0:26:13 > 0:26:15give a great focal point.
0:26:16 > 0:26:21And the brand-new kitchen is unrecognisable from before.
0:26:22 > 0:26:26Wow, this is a fantastic job and a really professional finish.
0:26:26 > 0:26:29I can't wait to see what's been done upstairs.
0:26:40 > 0:26:41A lovely new bathroom suite
0:26:41 > 0:26:44sits at the end of a newly-constructed landing
0:26:44 > 0:26:47made with space taken from the second bedroom,
0:26:47 > 0:26:49as Sue explains...
0:26:51 > 0:26:55This is the stud wall I built. I actually did build the wall.
0:26:55 > 0:26:57Some of the lads gave me a hand with the plasterboard,
0:26:57 > 0:26:59because that's very heavy.
0:26:59 > 0:27:01But I did all the framework.
0:27:01 > 0:27:03I think it's made it ideal.
0:27:03 > 0:27:06You couldn't walk through a bedroom to get into a bathroom.
0:27:06 > 0:27:09The bedroom's still a really good size
0:27:09 > 0:27:12and it's just made the whole upstairs flow through.
0:27:12 > 0:27:14I love it. I really am pleased with this.
0:27:16 > 0:27:18I think Sue has every right to be pleased.
0:27:18 > 0:27:22She and her regular team have done a cracking job.
0:27:22 > 0:27:26This is a much more practical layout that suits modern living,
0:27:26 > 0:27:29as does the bright and tasteful decor.
0:27:29 > 0:27:30I like the greys.
0:27:30 > 0:27:31Still fairly neutral.
0:27:31 > 0:27:34But getting away from magnolia makes a change.
0:27:34 > 0:27:36But, how has it been for Sue and Andy?
0:27:36 > 0:27:39Oh, and, of course, pet dog Alfie.
0:27:40 > 0:27:43Well, we started at the top of the house.
0:27:43 > 0:27:47Bathroom totally stripped, a new suite put in.
0:27:47 > 0:27:49Then, the front bedroom.
0:27:49 > 0:27:51The whole house was rewired.
0:27:51 > 0:27:56Then we came down and, again, all rewired.
0:27:56 > 0:27:58Plaster off the walls.
0:27:58 > 0:28:01Went into the kitchen, removed the kitchen.
0:28:01 > 0:28:03Redid the plastering there.
0:28:03 > 0:28:06And very nice job.
0:28:07 > 0:28:09Good kitchen fitters, so...
0:28:09 > 0:28:12I'm pleased with the whole thing.
0:28:12 > 0:28:13It all came together.
0:28:14 > 0:28:16It certainly has.
0:28:16 > 0:28:18Not only have they done the interior
0:28:18 > 0:28:20but they've also tidied up the back,
0:28:20 > 0:28:22including their neighbour Des's side,
0:28:22 > 0:28:26who has very kindly continued to look after the garden,
0:28:26 > 0:28:29along with the now hibernating Thomas the tortoise.
0:28:29 > 0:28:34It hasn't all gone to plan, though. As Sue and Andy explain...
0:28:34 > 0:28:36The biggest problem, the electrics.
0:28:37 > 0:28:40I had a quote of £650.
0:28:40 > 0:28:44But when the electrician started, he'd only been here ten minutes
0:28:44 > 0:28:47and phoned me up saying, "Sue, you'll have to come back down."
0:28:47 > 0:28:52All the electrics were the original electrics in the property when it was built, we think.
0:28:52 > 0:28:55So, the whole place had to be stripped.
0:28:55 > 0:28:58So, then it meant all the plaster.
0:28:58 > 0:29:00And we didn't cut corners.
0:29:00 > 0:29:03It's been done to a high standard,
0:29:03 > 0:29:07plus we've got the internet cables all through.
0:29:07 > 0:29:12Every room has got a TV plug, TV aerial
0:29:12 > 0:29:16and erm...all the DVD, anything you want
0:29:16 > 0:29:19regarding electrics is all behind the fireplace.
0:29:20 > 0:29:23Wow! That's impressive. OK, I like a gadget or two.
0:29:23 > 0:29:26But Sue has certainly brought this property right up-to-date.
0:29:26 > 0:29:27Unfortunately, though,
0:29:27 > 0:29:31the electrics weren't the only thing that caught her unawares.
0:29:31 > 0:29:34The fireplaces. I took the fireplaces out.
0:29:34 > 0:29:38Took the one in the middle room out first.
0:29:38 > 0:29:42Then, started on the front one and I heard a horrible crashing noise
0:29:42 > 0:29:46and the rest of the fireplace in the back room fell down.
0:29:46 > 0:29:52But it did reveal the original fireplace, the hole.
0:29:52 > 0:29:55So, we were able to make that a feature,
0:29:55 > 0:29:58where we did put all the electrics and then put...
0:29:58 > 0:30:02You can actually have a wood-burning stove or anything in there
0:30:02 > 0:30:03if you wanted to go back.
0:30:03 > 0:30:05The flu is still there but blocked off.
0:30:05 > 0:30:07So, it's made it very nice.
0:30:07 > 0:30:09Very nice feature in the room.
0:30:09 > 0:30:10Acting as project manager,
0:30:10 > 0:30:14Sue has done a great job of turning problems into positives
0:30:14 > 0:30:18and she's only gone over her £10,000 budget by £600,
0:30:18 > 0:30:23thanks, mainly, to Andy sourcing the best deals on the internet.
0:30:23 > 0:30:26What's more, their timeframe of two months has been stuck to,
0:30:26 > 0:30:29albeit somewhat delayed by holidays
0:30:29 > 0:30:32and problems with other properties they own.
0:30:37 > 0:30:41So, with a total outlay here of just under £72,000
0:30:41 > 0:30:42and Sue and Andy keen to sell,
0:30:42 > 0:30:46it will be interesting to see what two local experts
0:30:46 > 0:30:50think of the property, starting with the agent who saw it originally.
0:30:51 > 0:30:54This is the second time I've been to the property.
0:30:54 > 0:30:57And I think the work has been carried out to a great standard.
0:30:57 > 0:31:01And is certainly above the average, really, for a property of this type.
0:31:01 > 0:31:03Very impressed with the layout of the property.
0:31:03 > 0:31:05Especially upstairs on the landing.
0:31:05 > 0:31:06I think, originally,
0:31:06 > 0:31:09these had a walk straight through from a bedroom.
0:31:09 > 0:31:10It makes such a difference.
0:31:10 > 0:31:13And it will certainly increase value with the property.
0:31:13 > 0:31:14Great news.
0:31:14 > 0:31:18But, with a total outlay here of just under £72,000,
0:31:18 > 0:31:20what kind of figures are we talking?
0:31:22 > 0:31:24If this property were placed on the market for sale,
0:31:24 > 0:31:27I would expect it to achieve £85,000.
0:31:27 > 0:31:30I think, if the client decided to market this property for sale,
0:31:30 > 0:31:34I would expect them to achieve at least £89,000.
0:31:35 > 0:31:37Well, erm...
0:31:37 > 0:31:39..I think they're fair.
0:31:39 > 0:31:44But, to this standard, it wants to be at the top end, the 89.
0:31:44 > 0:31:47I valued it at 89,950.
0:31:47 > 0:31:50And I've actually sold the property for 89,000.
0:31:52 > 0:31:54Crikey! You kept that quiet, Sue.
0:31:54 > 0:31:57Selling it for £89,000 has left Sue
0:31:57 > 0:32:00with a pre-tax profit of just over 17,000,
0:32:00 > 0:32:03making this project a big success.
0:32:03 > 0:32:06And she isn't resting on her laurels one little bit.
0:32:09 > 0:32:12I keep saying I'm not going to buy any more, but it's like a drug.
0:32:12 > 0:32:14You do. You can't help yourself.
0:32:17 > 0:32:19Today, I'm in Maryport,
0:32:19 > 0:32:24the southern-most coastal town on the Solway Firth in Cumbria.
0:32:24 > 0:32:27Now, for many years, this place was called Ellenfoot,
0:32:27 > 0:32:31until a developer in Georgian times, by the name of Humphrey Senhouse,
0:32:31 > 0:32:36decided to redevelop it and name it in honour of his wife.
0:32:36 > 0:32:38Gladys.
0:32:39 > 0:32:40I'm kidding.
0:32:40 > 0:32:42Mary.
0:32:44 > 0:32:49# And the wind, it cries Mary... #
0:32:49 > 0:32:50It's hard to believe now,
0:32:50 > 0:32:55but Maryport in Cumbria was once an industrial hubbub.
0:32:55 > 0:32:59Coal from local mines was used in local smelting works.
0:32:59 > 0:33:00With the arrival of the railway,
0:33:00 > 0:33:04Maryport was one of the most important coal ports in England.
0:33:04 > 0:33:07Fishing then became the main industry,
0:33:07 > 0:33:09as coal and mining declined.
0:33:09 > 0:33:12Today, a series of major regeneration projects
0:33:12 > 0:33:15are improving the prospects for the town.
0:33:16 > 0:33:19Well, a few minutes' walk from the town centre and the harbour
0:33:19 > 0:33:21is the property I'm here to see.
0:33:21 > 0:33:23Three-bedroomed terrace.
0:33:23 > 0:33:25Guide price of £35,000-plus.
0:33:29 > 0:33:31So, not a lot of money.
0:33:31 > 0:33:35Does it have an interior that reflects that price?
0:33:35 > 0:33:37Well, nice, high ceilings as you walk through the door.
0:33:37 > 0:33:39Bit of an odd layout.
0:33:39 > 0:33:40Just one, big room down here
0:33:40 > 0:33:44which, obviously, makes this your living room
0:33:44 > 0:33:45and a sort of kitchen area.
0:33:45 > 0:33:48Well, at least it doesn't feel, sort of, claustrophobic.
0:33:48 > 0:33:51But here's a feature you don't see very often.
0:33:51 > 0:33:52Ta-da! There's the fireplace.
0:33:52 > 0:33:54And here's an alternative fireplace.
0:33:54 > 0:33:56Or is it a TV?
0:33:56 > 0:33:57Maybe.
0:33:57 > 0:33:58Oh...
0:33:58 > 0:34:00HOMES UNDER THE HAMMER THEME TUNE
0:34:02 > 0:34:03Brilliant show.
0:34:04 > 0:34:08Anyway, work to be done. But I do quite like the layout here.
0:34:09 > 0:34:11And, yeah, onwards and upwards.
0:34:15 > 0:34:16Urgh!
0:34:17 > 0:34:18That's not good.
0:34:23 > 0:34:24Neither is this.
0:34:24 > 0:34:27Sort of on this little landing halfway up the stairs,
0:34:27 > 0:34:29you've got this door,
0:34:29 > 0:34:32which leads out into this, well, covered passageway,
0:34:32 > 0:34:35which leads to another front door.
0:34:35 > 0:34:39This house is a listed building, so you have to think about that
0:34:39 > 0:34:42when it comes to deciding what you want to do with it.
0:34:42 > 0:34:46It's described in the catalogue as a three-storey house.
0:34:46 > 0:34:50But with this half-landing and this extra door that leads to it,
0:34:50 > 0:34:52it certainly is quirky.
0:34:52 > 0:34:55This other front door is tucked off to the right of the property.
0:34:55 > 0:34:58Confusing for the postman, I would have thought.
0:34:58 > 0:35:00Anyway, onwards and upwards.
0:35:00 > 0:35:03Let's hope it's not quite as complicated up here.
0:35:03 > 0:35:06Erm, what have we got? Bathroom there.
0:35:06 > 0:35:09With that hole in the floor.
0:35:09 > 0:35:11So, you'd definitely want to sort that out.
0:35:11 > 0:35:15Stairs up to the second floor, where the second bedroom is.
0:35:15 > 0:35:18And then, through into your first bedroom here.
0:35:18 > 0:35:22And, you know, what's the opposite of open plan?
0:35:22 > 0:35:24Because, downstairs is open plan.
0:35:24 > 0:35:26And up here is absolutely the opposite.
0:35:26 > 0:35:31It's very cramped. It's all corridors and stairs and it doesn't work.
0:35:31 > 0:35:35And glancing around, there's not an easy solution.
0:35:35 > 0:35:37So, some work to be done inside here.
0:35:38 > 0:35:41Going from the first floor with its bathroom and front bedroom,
0:35:41 > 0:35:45ever upwards to the second floor, you find two further bedrooms,
0:35:45 > 0:35:46each of reasonable size.
0:35:48 > 0:35:49But there's no denying,
0:35:49 > 0:35:53anyone challenged by stairs needn't bother bidding on this property.
0:35:58 > 0:36:00We asked a local property expert
0:36:00 > 0:36:04for their opinion on this perplexing property.
0:36:04 > 0:36:05The main downside to the property
0:36:05 > 0:36:09is that it doesn't have any outside space. Not even a small yard.
0:36:09 > 0:36:12Also, the positive of it being over three floors,
0:36:12 > 0:36:14could be a negative to some people.
0:36:14 > 0:36:17People do like the bathroom to be on the same floor as the bedroom.
0:36:18 > 0:36:20The bathroom arrangement is far from ideal.
0:36:20 > 0:36:24But tricky to see where you could fit one in to make life easier.
0:36:24 > 0:36:28What could this house rent for if done up to a good standard?
0:36:28 > 0:36:32We could achieve somewhere in the region of £350 per calendar month.
0:36:32 > 0:36:34Given a guide price of 35,000,
0:36:34 > 0:36:36after refurbishment,
0:36:36 > 0:36:40what sort of sale price would you advise on the open market?
0:36:40 > 0:36:41If the property was renovated,
0:36:41 > 0:36:44depending on the standard of the finish,
0:36:44 > 0:36:47it could achieve anywhere between £75,000 and £80,000.
0:36:48 > 0:36:52Well, a nice enough property, but a lot of work to be done on this one.
0:36:52 > 0:36:54So, not a weekend refurbishment.
0:36:54 > 0:36:56Let's see who decided to take on the challenge
0:36:56 > 0:36:58when it went under the hammer.
0:36:59 > 0:37:01Three-storey four-bedroom terraced house
0:37:01 > 0:37:03situated in a popular area of the town.
0:37:03 > 0:37:05The property is a listed building.
0:37:05 > 0:37:0635? 30?
0:37:06 > 0:37:08I need a bid.
0:37:08 > 0:37:09I can't sell it without one.
0:37:09 > 0:37:11At 30,000.
0:37:11 > 0:37:1330, I'm in.
0:37:13 > 0:37:14At 30,000.
0:37:14 > 0:37:16Despite a packed auction house,
0:37:16 > 0:37:19it looked like the guide price was unobtainable.
0:37:19 > 0:37:21But then the bids started to move a little.
0:37:21 > 0:37:23At £30,000, then.
0:37:23 > 0:37:2531. 32.
0:37:25 > 0:37:2633. 34.
0:37:26 > 0:37:2835. No?
0:37:28 > 0:37:30With you, at 34.
0:37:30 > 0:37:31Half. 35.
0:37:32 > 0:37:3435. Yeah, I've got half here.
0:37:34 > 0:37:35At 35, with you.
0:37:35 > 0:37:37Half? No.
0:37:37 > 0:37:38Back with you, at 35.
0:37:38 > 0:37:42At £35,000 on my left seated.
0:37:42 > 0:37:43First time.
0:37:43 > 0:37:44Second time.
0:37:44 > 0:37:46Third time at £35,000, then.
0:37:46 > 0:37:48Well done, sir.
0:37:49 > 0:37:54The successful bid of £35,000 was made by Dave.
0:37:54 > 0:37:57I met up with him and his business partner Kevin,
0:37:57 > 0:37:58leading the way here,
0:37:58 > 0:37:59back at the property.
0:38:01 > 0:38:05- Dave, Kevin, good to meet you both. Congratulations.- Thank you.
0:38:05 > 0:38:08- Tell me why you wanted to buy this property.- God knows!
0:38:08 > 0:38:09That's a good start. Yeah.
0:38:11 > 0:38:16Well, we're new into the renovation part of our careers now.
0:38:16 > 0:38:19We've done the house builds. We've done all that to do with that.
0:38:19 > 0:38:24We now want to go forward and buy properties to do up and to rent.
0:38:24 > 0:38:26Right, OK. And what's the relationship between you two?
0:38:26 > 0:38:30He says he's my second son, but I don't believe that.
0:38:30 > 0:38:33But, in those days, you couldn't get test, could you?
0:38:33 > 0:38:36- No, Kev is the builder of the business.- Right.
0:38:36 > 0:38:37And that's the connection.
0:38:37 > 0:38:40That's why we want to go forward and do other things.
0:38:40 > 0:38:44So does, in effect, Kevin work for you?
0:38:45 > 0:38:47Kevin actually works for my drainage business, yes.
0:38:47 > 0:38:50- And you're the boss of the drainage business?- I am.
0:38:50 > 0:38:53- So, in effect, he works for you. - We work together.- Right, OK.
0:38:53 > 0:38:56- I prefer that. - Yeah, you do, OK. That works.
0:38:56 > 0:38:59So, Kevin, then, this is a joint-venture?
0:39:01 > 0:39:04Yes. It's what we want to get into. It's a pension, isn't it?
0:39:04 > 0:39:07So, what do you stand to gain from it all?
0:39:08 > 0:39:11The next one will be in Kevin's name.
0:39:11 > 0:39:12Ah...!
0:39:12 > 0:39:15So, why now? What's prompted you to do this just now?
0:39:15 > 0:39:18It's a good time for us. Business is good.
0:39:18 > 0:39:22And we now want to reinvest that business into another business.
0:39:22 > 0:39:24OK. Fantastic.
0:39:24 > 0:39:27So, why this particular house, then?
0:39:27 > 0:39:30There's a funny story to that. Shall I tell it or shall you?
0:39:30 > 0:39:31- Oh, you can tell him. Go on.- Right.
0:39:31 > 0:39:34We arrived at our first auction a month ago, just gone.
0:39:36 > 0:39:39And the house we wanted was number five on the list.
0:39:39 > 0:39:44And the money that it went for was absolutely above our budget.
0:39:44 > 0:39:45Right.
0:39:45 > 0:39:49We have a certain budget and the next one along was this one,
0:39:49 > 0:39:51which was within our budget.
0:39:51 > 0:39:53That story is not that funny.
0:39:53 > 0:39:54Well, it's funny for us,
0:39:54 > 0:39:56because the one we wanted we didn't get a look in on.
0:39:56 > 0:40:00That's the funny bit. And we didn't want to come away empty-handed.
0:40:00 > 0:40:03Sorry, Dave, you know how it is when you have to explain the joke!
0:40:03 > 0:40:06- Right, so had you seen it beforehand?- No.- No.
0:40:06 > 0:40:08Oh...!
0:40:08 > 0:40:10- Had you read the legal pack?- No.
0:40:10 > 0:40:11Oh...!
0:40:12 > 0:40:15So you hadn't seen it, hadn't read the legal pack.
0:40:15 > 0:40:17- That's, kind of, a little bit on the...- Back to front?
0:40:17 > 0:40:20- Well, kind of. Bit dangerous. - Absolutely. But confidence, you see?
0:40:20 > 0:40:22Foolhardy, a bit, sort of?
0:40:22 > 0:40:24- Nothing to worry about, is there?- Well, possibly.
0:40:24 > 0:40:26- You don't know until you've read the legal pack.- Yeah.
0:40:26 > 0:40:29- No, it's all been dealt with. - Oh, now, after you've bought it.
0:40:29 > 0:40:34Oh, yes. Well, I'm finalising now, so there's nothing scary amongst it.
0:40:34 > 0:40:35Could have been, though.
0:40:35 > 0:40:37Well, confidence.
0:40:37 > 0:40:39Next time, we will read the legal pack.
0:40:39 > 0:40:44But this was our first and we're not upset about the purchase at all.
0:40:44 > 0:40:46How was the auction for you?
0:40:46 > 0:40:48That was great. We loved it.
0:40:48 > 0:40:50We were taken aback with how many people were there.
0:40:50 > 0:40:52Absolutely packed out.
0:40:52 > 0:40:53- And it was good.- Brilliant.
0:40:53 > 0:40:56So, what are the plans for it, then?
0:40:56 > 0:40:58- What are you going to do to it?- Top to bottom.
0:40:58 > 0:41:01- Take all the chimney breasts out, top to bottom.- Oh, are you?- Yeah.
0:41:01 > 0:41:02Take everything apart.
0:41:02 > 0:41:04And the walls, we'll re-skim where necessary.
0:41:04 > 0:41:05New floorboards.
0:41:05 > 0:41:07New heating system.
0:41:07 > 0:41:09Rewire.
0:41:09 > 0:41:11It's a, kind of, interesting layout, as well, isn't it?
0:41:11 > 0:41:14Sort of higgledy-piggledy, all over the place.
0:41:14 > 0:41:17What are you going to do to sort of change that?
0:41:17 > 0:41:20Well, the worst part for us, we think, is the kitchen area here
0:41:20 > 0:41:21because, you know,
0:41:21 > 0:41:24with the stairs coming up from behind that wall there,
0:41:24 > 0:41:27it's going to take a little bit of erm...
0:41:27 > 0:41:29..imagination.
0:41:29 > 0:41:31And there's no back yard to this property here.
0:41:31 > 0:41:36But the passage is there, which is a back yard.
0:41:36 > 0:41:40So, we can do things with that to make light work of the kitchen.
0:41:40 > 0:41:42- Right.- Put white goods in there, that sort of thing.- Right.
0:41:42 > 0:41:46So, is the idea, then, to do it up and sell it on or to rent it out?
0:41:46 > 0:41:47- Rent out.- Rent out.- Right.
0:41:47 > 0:41:49So, building a little portfolio between you.
0:41:49 > 0:41:52How's the work divvied up? What are you going to do, Kevin?
0:41:52 > 0:41:54- What's your job? - We all just play about together.
0:41:54 > 0:41:56- Right.- We all just chip in.
0:41:56 > 0:41:59- So keep everything in-house. - Yeah. What's your specialities?
0:41:59 > 0:42:02- I'm a bricklayer by trade.- Right.
0:42:02 > 0:42:05- I'll cover the plastering and everything.- Right.
0:42:06 > 0:42:07So, what's the budget?
0:42:07 > 0:42:09We have a budget of up to 12 grand.
0:42:10 > 0:42:13With the purchase price on top of that,
0:42:13 > 0:42:17we think we can turn this round into a nice return,
0:42:18 > 0:42:20- market appraisal-wise.- Right.
0:42:20 > 0:42:23What sort of rents do you think you might get?
0:42:24 > 0:42:28In the area, they're going for roughly £450 to £500.
0:42:28 > 0:42:30- Yeah, in this area.- Right.
0:42:30 > 0:42:31It does worry me that Dave and Kevin
0:42:31 > 0:42:34have gone into this without having a chance to weigh it all up.
0:42:34 > 0:42:37Their estimate of the rental is much higher than the agents
0:42:37 > 0:42:39who came to see it.
0:42:39 > 0:42:41Well, it remains to be seen who was right.
0:42:44 > 0:42:46They've set themselves a 12-week timescale
0:42:46 > 0:42:49and Dave's wife, Linda, will be looking after the finances
0:42:49 > 0:42:52so, hopefully, she'll make those figures add up.
0:42:52 > 0:42:54And are you happy with what you've paid for this one?
0:42:54 > 0:42:57- Yeah. Very much so, yeah. - Within the budget and all?
0:42:57 > 0:42:59Although I bought it blind.
0:42:59 > 0:43:00Yeah, I know.
0:43:00 > 0:43:01Tut-tut.
0:43:01 > 0:43:04OK, well, listen, congratulations.
0:43:04 > 0:43:05- Thank you.- Good luck.
0:43:05 > 0:43:08- Yeah, thank you.- And look forward to seeing how you get on.- Nice one.
0:43:08 > 0:43:10- Thank you.- Nice to meet you.
0:43:11 > 0:43:15So, a new joint venture for David and Kevin.
0:43:15 > 0:43:17But they broke all the rules buying this,
0:43:17 > 0:43:19their first auction property,
0:43:19 > 0:43:22not reading the legal pack, tut-tut-tut.
0:43:22 > 0:43:25Not visiting the property beforehand... More tuts.
0:43:25 > 0:43:27BREATHES IN AND OUT DEEPLY
0:43:27 > 0:43:28Hopefully...
0:43:29 > 0:43:34..the renovation will go a bit more, how shall we say, to plan.
0:43:34 > 0:43:35Yes.
0:43:35 > 0:43:38You can find out how they get on later in the show.
0:43:41 > 0:43:43Well, we've already found out how one of our buyers got on.
0:43:43 > 0:43:45What about the other two?
0:43:45 > 0:43:49Did they have the cash and the energy to complete everything they needed?
0:43:49 > 0:43:52Yes, how did those crucial valuations get on?
0:43:52 > 0:43:54Did the estate agents give them news they wanted to hear?
0:43:54 > 0:43:56Let's find out.
0:44:00 > 0:44:03It's time to go back to Deal in Kent,
0:44:03 > 0:44:05where part-time property developer Tracey
0:44:05 > 0:44:07and her business partner Martin
0:44:07 > 0:44:10paid 156,000 for this L-shaped plot of land,
0:44:10 > 0:44:14which came with planning permission for four houses.
0:44:18 > 0:44:21Since Tracey and Martin only build and rent out flats,
0:44:21 > 0:44:24the existing plans became the first casualties
0:44:24 > 0:44:27of this former St John's Ambulance headquarters development.
0:44:28 > 0:44:30We've already spoken to an architect
0:44:30 > 0:44:35and he's drafted plans with the potential of nine flats on the site.
0:44:36 > 0:44:38Tracey and Martin know the local rental market well,
0:44:38 > 0:44:43owning and renting 21 properties in this part of Kent.
0:44:43 > 0:44:45And they calculated that building flats on this site,
0:44:45 > 0:44:47rather than houses,
0:44:47 > 0:44:50could generate a rental income of nearly £6,000 per month.
0:44:52 > 0:44:56If you want a good rental return on what you're building on the site,
0:44:56 > 0:44:58then to build two-bedroom flats in Deal,
0:44:58 > 0:45:01it's a very sought-after rental area here.
0:45:03 > 0:45:06The existing plans for this former ambulance HQ
0:45:06 > 0:45:10were in need of urgent reconstructive surgery.
0:45:10 > 0:45:13Cue the flashing lights. Sirens on.
0:45:13 > 0:45:16It's time for a mad dash to the planning department.
0:45:16 > 0:45:18SCREECHING TYRES
0:45:21 > 0:45:25Hang on. Hang on. We all know planning doesn't work that way.
0:45:25 > 0:45:28SEDATE MUSIC
0:45:28 > 0:45:30Now, that's more like it.
0:45:31 > 0:45:35Tracey and Martin first submitted their plans in November 2013.
0:45:37 > 0:45:41And one year later, well, it's not been such a mad dash after all.
0:45:44 > 0:45:46We met up with them back at the site
0:45:46 > 0:45:50to find out how far their plans had progressed.
0:45:51 > 0:45:54Well, the original purchase was in the summer of last year,
0:45:54 > 0:45:57with completion a month later, July.
0:45:57 > 0:45:59After that, we instructed an architect
0:45:59 > 0:46:03and he had meetings with the local planning authority.
0:46:03 > 0:46:06We moved on from there with him preparing plans
0:46:06 > 0:46:08and submitting them in December.
0:46:08 > 0:46:11We understood that process was going to be about six weeks.
0:46:11 > 0:46:15So, we hoped to have planning by the end of January of 2014.
0:46:17 > 0:46:20That didn't happen and the date was extended and extended.
0:46:20 > 0:46:22And then the local planning authority
0:46:22 > 0:46:25said they wanted a viability survey carried out,
0:46:25 > 0:46:26which was at our expense.
0:46:26 > 0:46:31And that led to discussions then about a payment
0:46:31 > 0:46:36which eventually emerged and agreed as a figure of £20,000.
0:46:36 > 0:46:38So, that was agreed in May.
0:46:38 > 0:46:41So, we thought we'd have the planning very shortly after that.
0:46:41 > 0:46:45But it wasn't, in fact, until October 2014
0:46:45 > 0:46:48that planning was finally granted to us.
0:46:52 > 0:46:56Tracey and Martin had originally planned for nine flats on the site.
0:46:56 > 0:47:00But this was increased by one at the suggestion of their architect.
0:47:00 > 0:47:01Back at the office,
0:47:01 > 0:47:05Tracey took us through the new plans in more detail.
0:47:06 > 0:47:09# Everybody's got to have plans
0:47:10 > 0:47:14# She said Everybody's got to have plans... #
0:47:15 > 0:47:17So, looking at the plans now,
0:47:17 > 0:47:20we've got the driveway through the front of the property,
0:47:20 > 0:47:23under the archway, to the rear of the property.
0:47:23 > 0:47:27On the ground floor, we've got three two-bedroom flats.
0:47:27 > 0:47:30When we move up to the first floor,
0:47:30 > 0:47:34we've got three two-bedroom flats and a one-bedroomed flat.
0:47:34 > 0:47:38And moving to the second floor, which is effectively the loft area,
0:47:38 > 0:47:41there's a large three-bedroom flat
0:47:41 > 0:47:44with one very large bedroom with an en suite
0:47:44 > 0:47:48and two separate double bedrooms with a shared bathroom.
0:47:48 > 0:47:52All of the property has got lounge-diners as an open space.
0:47:54 > 0:47:55And separately,
0:47:55 > 0:47:59there's a stand-alone two-floor two-bedroom unit,
0:47:59 > 0:48:01which has got separate parking.
0:48:03 > 0:48:05It all looks pretty impressive.
0:48:05 > 0:48:09But their timescale for completion has, obviously, taken a hit.
0:48:11 > 0:48:16Has this delay had an impact on their budget of 630,000?
0:48:19 > 0:48:23The delay in the planning coming through hasn't been negative to us,
0:48:23 > 0:48:26other than the fact that the site has now stood empty for a year,
0:48:26 > 0:48:29while as we would have hoped to have a return on the money
0:48:29 > 0:48:31that we'd invested into it.
0:48:31 > 0:48:35Fortunately, in the last year, we've been in a rising market,
0:48:35 > 0:48:39so the properties will be worth more when they're actually built.
0:48:41 > 0:48:43Tracey and Martin know this business
0:48:43 > 0:48:47and, more importantly, this area like the back of their hands.
0:48:49 > 0:48:53Seems like a good point to bring in some impartial opinion
0:48:53 > 0:48:55from two local estate agents.
0:48:57 > 0:49:00I think the new plans and planning consent
0:49:00 > 0:49:01are very appropriate for the site.
0:49:01 > 0:49:06It's a good use of the space and will be in demand in this area.
0:49:06 > 0:49:09I think the flats themselves in this location
0:49:09 > 0:49:11will provide something quite unique.
0:49:11 > 0:49:13I think there isn't many
0:49:13 > 0:49:15apartments and flats in this spot.
0:49:15 > 0:49:18But I do think there is a need for it,
0:49:18 > 0:49:20especially, sort of, first-time buyers
0:49:20 > 0:49:21and people that are downsizing.
0:49:23 > 0:49:25Well, let's get some values.
0:49:25 > 0:49:28Firstly, what price could these flats achieve
0:49:28 > 0:49:30on the current property market?
0:49:32 > 0:49:37Sales values here are going to be between 100,000 and 135,000
0:49:37 > 0:49:40in the range of one bedrooms through to three bedrooms,
0:49:40 > 0:49:45with probably the two-beds coming in at about £120,000.
0:49:45 > 0:49:49I would suggest that the one-beds would be marketed around 100,000.
0:49:50 > 0:49:55The two-beds at around the sort of 120,000, 125,000 price banding.
0:49:55 > 0:50:00And then the three, around the sort of 135,00, 140,000 level,
0:50:00 > 0:50:03depending on spec and how it's finished.
0:50:04 > 0:50:06Taking those top-end prices,
0:50:06 > 0:50:11the grand total comes to £1.24 million,
0:50:11 > 0:50:14minus the purchase price of 156,000,
0:50:14 > 0:50:20with an estimated spend of £700,000, including the extra flat.
0:50:20 > 0:50:22That would leave Tracey and Martin
0:50:22 > 0:50:27with a healthy profit of 384,000 before taxes and fees.
0:50:29 > 0:50:31Fantastic. Better than I thought.
0:50:31 > 0:50:34Those are slightly higher figures than we're working to.
0:50:35 > 0:50:37But as fantastic as those figures are,
0:50:37 > 0:50:41these two Kent developers aren't changing their game plan.
0:50:42 > 0:50:46We find that the financial advantage is in keeping the flats
0:50:46 > 0:50:47over a period of time.
0:50:47 > 0:50:51We are looking to build and keep flats over 10, 20 years.
0:50:56 > 0:51:00Time to return to the town of Ellenfoot in Cumbria.
0:51:00 > 0:51:01# That's not my name
0:51:01 > 0:51:03# That's not my name
0:51:03 > 0:51:05# That's not my name
0:51:05 > 0:51:06# That's not my name... #
0:51:06 > 0:51:08OK. OK.
0:51:08 > 0:51:12The name it's been known by since Georgian times, Maryport in Cumbria.
0:51:14 > 0:51:18We were here to see a three-bed three-floored terraced house
0:51:18 > 0:51:21with a guide price of £35,000 plus.
0:51:21 > 0:51:24And, well, a few problems to go with it.
0:51:26 > 0:51:27Urgh!
0:51:28 > 0:51:29That's not good.
0:51:31 > 0:51:34It also had a slightly unusual layout,
0:51:34 > 0:51:38with an open-plan kitchen and living area on the ground floor.
0:51:38 > 0:51:40A little landing on the way up the stairs.
0:51:41 > 0:51:44A bedroom and bathroom on the first floor.
0:51:44 > 0:51:47And the final two bedrooms on the top.
0:51:47 > 0:51:51It was bought for the guide price of £35,000 by Dave.
0:51:51 > 0:51:53He was going to develop it with business partner Kevin
0:51:53 > 0:51:55and, although a good price,
0:51:55 > 0:51:58he seemed aware of the difficulties with that layout.
0:51:58 > 0:52:01It's a kind of interesting layout as well, isn't it?
0:52:01 > 0:52:03It's sort of higgledy-piggledy all over the place.
0:52:03 > 0:52:06What are you going to do to sort of change that?
0:52:06 > 0:52:09Well, the worst part for us, we think, is the kitchen area here.
0:52:09 > 0:52:13Because, you know, with the stairs coming up from behind that wall there,
0:52:13 > 0:52:15it's going to take a little bit of, erm...
0:52:16 > 0:52:17..imagination.
0:52:18 > 0:52:20# Imagination
0:52:22 > 0:52:24# Could make a man of you
0:52:24 > 0:52:26# Imagination... #
0:52:26 > 0:52:29Oh, well, Dave and Kevin must have good imaginations,
0:52:29 > 0:52:31as they bought this without even viewing it.
0:52:31 > 0:52:32Oh, dear...
0:52:32 > 0:52:37Still, they had a budget of £12,000 and a timescale of 12 weeks.
0:52:37 > 0:52:40Could the boys dream up a profitable property
0:52:40 > 0:52:42or is that the stuff of fantasy?
0:52:42 > 0:52:43- The windows are quite good.- Yep.
0:52:47 > 0:52:50Four months later, we've returned to find out.
0:52:53 > 0:52:56That bathroom's been totally redeveloped and it's looking great.
0:52:58 > 0:53:00And while there's still work to be done on the rest of the house,
0:53:00 > 0:53:03the walls and ceilings have all been re-plastered
0:53:03 > 0:53:05so that it's just about ready to decorate.
0:53:06 > 0:53:09They've even found a use for the mezzanine passageway,
0:53:09 > 0:53:13putting in a WC to make a ground-floor toilet.
0:53:13 > 0:53:15As Kevin was on another job,
0:53:15 > 0:53:17we caught up with Dave and his wife, Linda,
0:53:17 > 0:53:19to hear all about it.
0:53:20 > 0:53:24It's been four months almost to the day since we started the project.
0:53:24 > 0:53:26We've got about another four weeks to ago.
0:53:26 > 0:53:29The top two rooms are both bedrooms.
0:53:29 > 0:53:33They just needed squaring up and stripping back and rebuilding, basically.
0:53:33 > 0:53:36Floorboards were replaced where necessary.
0:53:36 > 0:53:38The middle floor, the bathroom,
0:53:38 > 0:53:41that was a total, total disaster, that.
0:53:41 > 0:53:42All the floors came out of there.
0:53:42 > 0:53:44Joists were replaced where necessary.
0:53:44 > 0:53:46And the whole place has been rewired, replumbed.
0:53:46 > 0:53:50And then we're on the sitting room, which is the last room to do.
0:53:50 > 0:53:52So, that'll be happening in the next few weeks.
0:53:52 > 0:53:55We'll be into that and squaring that away.
0:53:55 > 0:53:58So, with a combined sitting room and kitchen the last on their list,
0:53:58 > 0:53:59they're getting there.
0:53:59 > 0:54:02Hang on, though, if the kitchen isn't finished yet,
0:54:02 > 0:54:04where are we interviewing them?
0:54:04 > 0:54:06Let's let Dave explain.
0:54:06 > 0:54:08Within a few days, we decided to take away
0:54:08 > 0:54:09the chimney in the sitting room
0:54:09 > 0:54:12to give a bit more width to the room.
0:54:12 > 0:54:15And we dropped the chimney onto the floor upstairs,
0:54:15 > 0:54:17cleared all the rubble away
0:54:17 > 0:54:20and then we found a hole in the floor where the hearth was.
0:54:21 > 0:54:24And my grandson was here that day and we put a ladder down
0:54:24 > 0:54:26and dropped him into the hole
0:54:26 > 0:54:30and he shone his torch around off his phone.
0:54:31 > 0:54:34And it became quite clear that we have to use this room.
0:54:36 > 0:54:38So, where's the kitchen?
0:54:38 > 0:54:41Yep, it's in the cellar they didn't even know existed.
0:54:41 > 0:54:45And moving it down there really seems to have solved a problem.
0:54:47 > 0:54:50The original room, a lounge and a kitchen,
0:54:50 > 0:54:54we were struggling to get it to look anything.
0:54:54 > 0:54:58So, to find a cellar, it was brilliant.
0:54:58 > 0:55:01I came down when they'd made access into it.
0:55:01 > 0:55:03It was very dark. I had a torch.
0:55:03 > 0:55:05It was an earth floor and I thought,
0:55:05 > 0:55:08hmm, it's got to be very light in here.
0:55:08 > 0:55:12So, the vision was to have a light floor, light walls.
0:55:12 > 0:55:15And I wanted a white kitchen, but it was too white.
0:55:15 > 0:55:17So, we put the floor down
0:55:17 > 0:55:22and then carried on with the rest of the kitchen equipment.
0:55:22 > 0:55:24Erm...
0:55:24 > 0:55:26And, really, I'm so pleased with it.
0:55:27 > 0:55:31It does look great. And, OK, it does mean another set of stairs.
0:55:31 > 0:55:35But, on the other hand, it means more room for the living area.
0:55:35 > 0:55:38But, discovering and renovating a secret new room
0:55:38 > 0:55:40would have had an effect on the budget.
0:55:40 > 0:55:42So, how have they got on?
0:55:44 > 0:55:48The original budget, we estimated at between 12,000 and 15,000.
0:55:48 > 0:55:50That's now gone to 20,000.
0:55:50 > 0:55:54If we come in with 20,000 spent, then we're doing OK.
0:55:55 > 0:55:58Dave bought the house for its guide price of 35,000
0:55:58 > 0:56:01and, although his budget has gone up to 20,000,
0:56:01 > 0:56:04the property now has an additional room.
0:56:04 > 0:56:07Will that extra spend have been worth it?
0:56:07 > 0:56:09We've asked along two local property experts to
0:56:09 > 0:56:11get their opinion.
0:56:13 > 0:56:15Yeah, I think it's very quirky.
0:56:16 > 0:56:18It has the benefits from a bathroom
0:56:18 > 0:56:20and also a downstairs toilet as well.
0:56:21 > 0:56:23But the emergence of the cellar
0:56:23 > 0:56:25has really kind of opened the property up
0:56:25 > 0:56:27to a much larger property.
0:56:27 > 0:56:29I think it's vastly benefited the property.
0:56:29 > 0:56:31What I can see is of a good standard.
0:56:31 > 0:56:35If it's completed to that fully, you know,
0:56:35 > 0:56:38I think it's going to create a great home.
0:56:38 > 0:56:41They certainly seem enthused about Dave's new layout.
0:56:41 > 0:56:44His total spend is now £55,000.
0:56:44 > 0:56:48So, how much could he expect were he to sell the property?
0:56:48 > 0:56:52We would estimate we could market the property for around £82,000.
0:56:52 > 0:56:55Done up to a good standard, I feel, in the current market,
0:56:55 > 0:56:57this property would achieve a sale value
0:56:57 > 0:57:01in the region of about £85,000.
0:57:01 > 0:57:03That would be a profit of up to £30,000,
0:57:03 > 0:57:06minus the usual taxes and expenses.
0:57:06 > 0:57:08Not bad for five months' work.
0:57:08 > 0:57:10And were the property to be rented...?
0:57:12 > 0:57:13We would expect that we could achieve
0:57:13 > 0:57:15around £400 per calendar month.
0:57:15 > 0:57:21In the region of £400-£425 per calendar month.
0:57:22 > 0:57:24- Oh, that's good. - That's all right.- Yeah. Yeah.
0:57:24 > 0:57:27I thought about 360, 380. So, that's not bad.
0:57:27 > 0:57:29Yeah, that's all right.
0:57:30 > 0:57:34This would give Dave a yield of just over 9%.
0:57:34 > 0:57:37Not bad, considering they're keeping the property as an investment
0:57:37 > 0:57:38and renting it out.
0:57:38 > 0:57:40So, what's next?
0:57:42 > 0:57:44- Look for another one. - No, not quite yet.
0:57:44 > 0:57:46I have to have two months off now.
0:57:48 > 0:57:51And then I'm allowed to start looking for another one.
0:57:51 > 0:57:52But, the next one,
0:57:52 > 0:57:55he will definitely look at before he buys it.
0:57:55 > 0:57:58I don't want the shock again that I had when I came in here.
0:57:58 > 0:58:00Yeah, but what a result.
0:58:03 > 0:58:05Well, that's all we've got time for
0:58:05 > 0:58:08but join us next time for more of the ups and downs...
0:58:08 > 0:58:10- Hopefully, not too many downs. - Well, yes!
0:58:10 > 0:58:13..of property developing here on Homes Under The Hammer.
0:58:13 > 0:58:15- We'll see you then. - Goodbye.- Goodbye.