0:00:02 > 0:00:03Hello and welcome to the programme.
0:00:03 > 0:00:06Now, Martin, I'm sure you'll agree with me, property developing is
0:00:06 > 0:00:09hard work, it's frustrating, but it is never boring.
0:00:09 > 0:00:10No, it's a fascinating world to be in.
0:00:10 > 0:00:14No properties are ever the same and no two days are ever the same.
0:00:14 > 0:00:17That is why we love it - buying homes under the hammer.
0:00:42 > 0:00:45Now, there are so many things to think about before you
0:00:45 > 0:00:48enter the world of property developing, but to get
0:00:48 > 0:00:51a good feel for it you should head down to your local auction.
0:00:51 > 0:00:54Absolutely, let's take a look and see what today's bidders bought.
0:00:56 > 0:01:00First up in Barons Court, London, it's the outside that's the problem.
0:01:00 > 0:01:04There we go, there's the track right there.
0:01:06 > 0:01:11But in Abertillery, Wales, it's the inside that needs a drastic solution.
0:01:11 > 0:01:14- You are the workforce, are you? - I'm demolition.
0:01:16 > 0:01:20And in Walderslade, Chatham, one side is pretty good,
0:01:20 > 0:01:25this side, however...not good.
0:01:27 > 0:01:29All these properties have been sold at auction.
0:01:29 > 0:01:32We'll find out who bought them and what they paid for them
0:01:32 > 0:01:34when they went under the hammer.
0:01:34 > 0:01:35Sold to yours...
0:01:38 > 0:01:42Barons Court, Kensington, lies a short hop, skip and a jump
0:01:42 > 0:01:44from London's shops and museums
0:01:44 > 0:01:47and there is an eclectic variety of properties.
0:01:47 > 0:01:51Town houses, conversions, flats and mews but, as we all know,
0:01:51 > 0:01:56living close to the city centre doesn't come cheap.
0:01:56 > 0:02:02The average price of a flat in Barons Court is over half a million quid.
0:02:02 > 0:02:06Even in an expensive area, there is sometimes a relative bargain
0:02:06 > 0:02:09to be found, and in the auction catalogue, with a guide price
0:02:09 > 0:02:13of just £350,000 plus, was this -
0:02:13 > 0:02:16a first-floor, one-bedroom flat!
0:02:16 > 0:02:20I can't wait to see what you get for that kind of money around here.
0:02:22 > 0:02:25This is one of the more traditional buildings in the area.
0:02:25 > 0:02:27Brick-built, its style,
0:02:27 > 0:02:30detailing and balconies give it a real sense of grandeur.
0:02:33 > 0:02:36I love these old mansion blocks, they have such a lovely feeling
0:02:36 > 0:02:39and there is lots of light coming in.
0:02:39 > 0:02:43Already I'm feeling quite at home here. What's in here?
0:02:43 > 0:02:46SHE LAUGHS I am laughing because you're in London
0:02:46 > 0:02:49and a lot of estate agents might call that bedroom number two.
0:02:49 > 0:02:52Clearly it's not big enough for that, you couldn't get a single bed
0:02:52 > 0:02:55in there, but it seems a waste of space to have that as a cupboard,
0:02:55 > 0:02:58so maybe in that little nook you could put a computer
0:02:58 > 0:03:01and just do something a little bit more interesting with it.
0:03:01 > 0:03:05So, the reception room - don't think the green is working.
0:03:05 > 0:03:10A nice, muted tone would work well. But a stunning bay window.
0:03:10 > 0:03:12That is absolutely gorgeous.
0:03:12 > 0:03:15You could start from scratch, you have the floorboards
0:03:15 > 0:03:18so you can either put some nice hardwood flooring, but this is a leasehold flat,
0:03:18 > 0:03:21so you would have to get permission from the leaseholder - don't forget.
0:03:21 > 0:03:23So in here the kitchen.
0:03:23 > 0:03:24SHE KNOCKS
0:03:24 > 0:03:30Would we like to knock through and make this one great big, open-plan space?
0:03:30 > 0:03:33I think so, because it's almost as though there's too much stuff
0:03:33 > 0:03:36going on in here and it's not big enough.
0:03:36 > 0:03:40But there are doors, so that must mean outside space.
0:03:41 > 0:03:43I love this.
0:03:43 > 0:03:47It's only small but you do have your very own balcony in London,
0:03:47 > 0:03:51outside space, glass of wine, cup of tea, whatever.
0:03:51 > 0:03:55From here I can see shops, bars, brasseries and life.
0:03:55 > 0:03:59You're in London, what's not to like?
0:03:59 > 0:04:02OK, well, the colour scheme, it might not be to everyone's taste,
0:04:02 > 0:04:05but it's like I always say, don't let the decor colour your judgment.
0:04:05 > 0:04:07MUSIC: A Little Bit of Green by Elvis Presley
0:04:07 > 0:04:12# Just a little bit of green
0:04:15 > 0:04:19# Clouds my eyes to what I've seen. #
0:04:21 > 0:04:23So this is the only bedroom in the flat,
0:04:23 > 0:04:26of course it's a one-bedroomed property,
0:04:26 > 0:04:29but it's a wonderful space in here - lovely high ceilings,
0:04:29 > 0:04:33you have cornicing, and two fabulous sash windows over there,
0:04:33 > 0:04:37and the bathroom, again this is a really big bathroom, you have room
0:04:37 > 0:04:42for a shower, a big bath, there's even storage in there, which is good.
0:04:42 > 0:04:46The downside is, this is the only doorway into the loo,
0:04:46 > 0:04:49so if you're in the flat you have to walk through the bedroom to get here.
0:04:49 > 0:04:52So I suppose you could create an independent access with
0:04:52 > 0:04:54the corridor, but it all depends on the budget
0:04:54 > 0:04:57and how far you want to go with a property like this.
0:04:57 > 0:05:00I think the interesting thing here is it's London, it's location,
0:05:00 > 0:05:03the tube station is literally around the corner,
0:05:03 > 0:05:05but when you look out the window...
0:05:08 > 0:05:12..there we go, there's the track right there.
0:05:12 > 0:05:16I'm just wondering how noisy it's going to be in this flat.
0:05:16 > 0:05:17These are single-glazed.
0:05:17 > 0:05:19It might be worth spending that extra bit of money
0:05:19 > 0:05:21and putting some double glazing in.
0:05:22 > 0:05:26The plumbing needs a bit of attention, the cold water feed
0:05:26 > 0:05:30to the electric shower is currently routed along the bedroom walls.
0:05:30 > 0:05:32Unobtrusive it is not.
0:05:32 > 0:05:36The actual bathroom fitments all need refreshing and replacing
0:05:36 > 0:05:39and then that cupboard space I mentioned earlier.
0:05:39 > 0:05:43Well, a combi boiler replacing that tank might free up some space.
0:05:43 > 0:05:47So work to be done, but nothing that appears to make
0:05:47 > 0:05:51that guide price of 350,000 seem worrying.
0:05:51 > 0:05:55In London, prices can vary enormously within a few streets
0:05:55 > 0:05:57so we asked along a local agent to tell us
0:05:57 > 0:06:00more about the potential for this one-bed flat.
0:06:00 > 0:06:04For instance, if a developer was to buy this to sell on,
0:06:04 > 0:06:06what kind of buyer would they be aiming at?
0:06:08 > 0:06:11I expect to be selling this flat to a young professional.
0:06:11 > 0:06:13Late 20s, really.
0:06:13 > 0:06:17They would be expecting quite a high standard of finish.
0:06:17 > 0:06:22Perhaps oak wooden floors or even if these floors were refurbished,
0:06:22 > 0:06:25a really high-end kitchen, a really smart bathroom.
0:06:25 > 0:06:27Yeah, just open it all up.
0:06:27 > 0:06:31People really like a luxurious place to come home to.
0:06:32 > 0:06:36Luxury might be a relatively easy, if expensive, attraction -
0:06:36 > 0:06:39but what of my fears of the noise from the trains?
0:06:39 > 0:06:42Some people will be put off by the train line being there,
0:06:42 > 0:06:45but they don't run at night, so perhaps people prefer it to
0:06:45 > 0:06:48a busy road where you can't really control it.
0:06:48 > 0:06:52You get quite used to the train noise, believe it or not, and
0:06:52 > 0:06:56people realise when they're buying in this area you've got to compromise.
0:06:56 > 0:06:59How much is that compromise going to cost?
0:06:59 > 0:07:02If this flat was refurbished to a high standard, I would be
0:07:02 > 0:07:08expecting us to achieve, on the sale side, anything between £500,000
0:07:08 > 0:07:13to as much as £550,000 if the market continues to go up as it has been.
0:07:13 > 0:07:15And as for rentals,
0:07:15 > 0:07:18it's a really good rental market at the moment so, if that continues,
0:07:18 > 0:07:22I would expect to be achieving £1,500 per calendar month.
0:07:22 > 0:07:24So it's not a huge property.
0:07:24 > 0:07:27The bathroom might need some independent access.
0:07:27 > 0:07:30But there is potential to do it up and make a profit here,
0:07:30 > 0:07:34so let's see who wanted this at the auction.
0:07:34 > 0:07:38Move on to Lot 56. Around Barons Court area, a good area.
0:07:38 > 0:07:41Kensington, W14, near Queen's Club.
0:07:41 > 0:07:43Who would like to kick off on this?
0:07:43 > 0:07:44400?
0:07:46 > 0:07:49300 with you. 305?
0:07:49 > 0:07:50Anywhere?
0:07:51 > 0:07:55305 with you, madam. 310, 315.
0:07:55 > 0:07:57No, it's behind you.
0:07:57 > 0:08:00You had your chance. 315, 320.
0:08:00 > 0:08:06Well, the bids climb rapidly to where we rejoin the bidding at £450,000.
0:08:06 > 0:08:08450.
0:08:08 > 0:08:09455.
0:08:10 > 0:08:12460.
0:08:14 > 0:08:15465.
0:08:16 > 0:08:17470.
0:08:20 > 0:08:21475?
0:08:24 > 0:08:26475. 480?
0:08:30 > 0:08:32480. 485?
0:08:36 > 0:08:40Have a think. 480. 481 will maybe help a bit?
0:08:40 > 0:08:43You never know, it might stop him. 481?
0:08:43 > 0:08:47Yeah, 481. 482?
0:08:47 > 0:08:48No?
0:08:48 > 0:08:49482, yes?
0:08:50 > 0:08:54Come on, 1,000 and you're going to miss it. 481.
0:08:54 > 0:08:57You're being a gentleman. There's not a gentleman in the room.
0:08:57 > 0:09:00481, with the lady. 482?
0:09:00 > 0:09:02481 with the lady.
0:09:02 > 0:09:07First time, second time, third and last time. If you're all done...
0:09:07 > 0:09:08481.
0:09:08 > 0:09:09You're very lucky, madam.
0:09:09 > 0:09:12MUSIC: Luck Be A Lady by Frank Sinatra
0:09:12 > 0:09:14# Luck be a lady tonight... #
0:09:14 > 0:09:16And the lucky lady bidder was Cherry.
0:09:16 > 0:09:19Her successful bid of £481,000
0:09:19 > 0:09:24was a substantial £131,000 over the guide price.
0:09:24 > 0:09:29I met her at the flat along with her personal trainer and friend, Charlie.
0:09:30 > 0:09:33Cherry and Charlie, lovely meeting you both today.
0:09:33 > 0:09:36So this is for you and what's Charlie's input going to be?
0:09:36 > 0:09:38So, Charlie is helping me with it
0:09:38 > 0:09:41so he's going to help with the project management and also he's
0:09:41 > 0:09:45very well connected so we'll be using his contacts to do the work here.
0:09:45 > 0:09:47So have you got property interests, Charlie?
0:09:47 > 0:09:51I have, yes. I've wanted to do this for a while now. I've always been interested.
0:09:51 > 0:09:54My fiancee and I have just bought a place and we've done that up
0:09:54 > 0:09:57so it will be a new challenge, and looking forward to it.
0:09:57 > 0:09:58So, guys, how did this all come about?
0:09:58 > 0:10:02- Was it over a training session?- Yes. - It actually was.- Was it?
0:10:02 > 0:10:05You should have been sweating and doing lots of hard work.
0:10:05 > 0:10:09She was out of breath so when I put it across to her she couldn't really say no. So, yeah.
0:10:09 > 0:10:10So come on, tell me.
0:10:10 > 0:10:13When I first met Charlie last year, I had my own business
0:10:13 > 0:10:16and I was just in the process of selling that business
0:10:16 > 0:10:21so I said to him I wanted to use the money to start doing this.
0:10:21 > 0:10:24This is something that my parents have done for years and years,
0:10:24 > 0:10:26so I've always wanted to do it as well.
0:10:26 > 0:10:27So what makes you think, guys,
0:10:27 > 0:10:32that you can add value to quite a small flat like this,
0:10:32 > 0:10:35enough to then reap the rewards and move onto the next one?
0:10:35 > 0:10:38I think if we get the touch right hopefully someone will come in
0:10:38 > 0:10:41and fall in love with the flat and they'll want to take it.
0:10:41 > 0:10:44So, Charlie, what is the magic touch? Tell me.
0:10:44 > 0:10:48The magic touch is light and airy, I suppose.
0:10:48 > 0:10:53We just need to go high-quality and I think that will sell this.
0:10:53 > 0:10:56And they have ambitious plans for the space currently
0:10:56 > 0:10:58used as a cylinder cupboard.
0:10:58 > 0:11:02We thought maybe putting a cloakroom in there would be a good idea
0:11:02 > 0:11:04but take the wall back and make it smaller.
0:11:04 > 0:11:07That is a great idea to have a secondary loo,
0:11:07 > 0:11:10not that you do need it, or you could maybe think about a little
0:11:10 > 0:11:13corridor into that bathroom, so it's independent.
0:11:13 > 0:11:16So, guys, what is the budget? Let's start with that.
0:11:16 > 0:11:2120,000, because we want to have a really nice kitchen and bathroom
0:11:21 > 0:11:26because we feel that is really the selling point for the flat.
0:11:26 > 0:11:33- And we have a 5,000 contingency. - £20,000-£25,000 budget. Timescale?
0:11:33 > 0:11:35How long are you thinking it is going to take you?
0:11:35 > 0:11:38Three months is what we've set ourselves.
0:11:38 > 0:11:40That is a fair amount of time.
0:11:40 > 0:11:42And time is money, especially
0:11:42 > 0:11:45when Cherry will have just over half a million pounds tied up
0:11:45 > 0:11:48in this property - so every week the refurbishment takes is
0:11:48 > 0:11:53a loss of potential income in addition to labour costs.
0:11:53 > 0:11:56- Cherry, have you ever done anything like this before?- Yes, I have.
0:11:56 > 0:11:57You've done this before?
0:11:57 > 0:12:00Not for property development, but I've done it to live in.
0:12:00 > 0:12:03I've done it three times now and the house that I live in at the moment,
0:12:03 > 0:12:07we had to rent a house for six months while it was being done
0:12:07 > 0:12:12so I've lived through a huge, huge project of totally re-doing a house.
0:12:12 > 0:12:16So, coming in to see what we need to do here is not daunting at all.
0:12:16 > 0:12:21What do your family think, particularly your mum and dad, because this is what they used to do?
0:12:21 > 0:12:24My mum is really excited about it.
0:12:24 > 0:12:27My husband was really cross with how much money
0:12:27 > 0:12:30I spent at the auction and so I had to get her on the phone
0:12:30 > 0:12:34and she assured him that it's in the blood, so it's all going to be OK.
0:12:35 > 0:12:37Yeah, I think she's really excited.
0:12:37 > 0:12:40She loves Homes Under The Hammer, so when I was approached to
0:12:40 > 0:12:43go on it I had to say "yes" because I felt I had to do it for her.
0:12:43 > 0:12:46Well, guys, it's been lovely meeting you both today
0:12:46 > 0:12:50and I really hope you can put the Charlie touch to this flat.
0:12:50 > 0:12:51I'm sure it's going to look fantastic
0:12:51 > 0:12:54and we will be back to check up on you.
0:12:54 > 0:12:57- Brilliant.- Lovely to meet you. Well done.- Thank you.
0:12:57 > 0:13:00Well, Cherry is taking on the family tradition of just
0:13:00 > 0:13:03setting off on her first property development venture.
0:13:03 > 0:13:05How will she get on?
0:13:05 > 0:13:06With Charlie's help,
0:13:06 > 0:13:09hopefully she'll turn this tired little flat
0:13:09 > 0:13:11into a bijou pad for a king.
0:13:11 > 0:13:12You can find out
0:13:12 > 0:13:16if Charlie does add his magic touch later in the programme.
0:13:21 > 0:13:23Singer Tom Jones has a lot to thank
0:13:23 > 0:13:26Abertillery in his home country of Wales for.
0:13:26 > 0:13:27# Yeah... #
0:13:27 > 0:13:31It was his performance in the Top Hat Club here that led to him
0:13:31 > 0:13:34being signed by manager Gordon Mills.
0:13:34 > 0:13:35The rest we can say is pop history.
0:13:35 > 0:13:37MUSIC: If I Only Knew by Tom Jones
0:13:37 > 0:13:39# If I only knew
0:13:39 > 0:13:41# What I could do
0:13:41 > 0:13:43# To make you, make you love me
0:13:43 > 0:13:45# To make you, make you love me. #
0:13:45 > 0:13:51£15,000 plus was the guide price for the property that I'm about to see.
0:13:51 > 0:13:54What do you reckon you get for that? Can't be much, can it?
0:13:56 > 0:14:01Well, it's a two-bed terrace. How bad can it be?
0:14:01 > 0:14:03Erm...
0:14:03 > 0:14:05..well...seen worse.
0:14:07 > 0:14:09It doesn't smell too bad.
0:14:09 > 0:14:12So, the corridor - pine-tastic.
0:14:12 > 0:14:15The front living room area there - it looks dark, obviously,
0:14:15 > 0:14:18because you have those boards on the windows.
0:14:18 > 0:14:21Just to take those off would make that room feel a lot better.
0:14:21 > 0:14:24But it seems all right. There are bits of wood lying around all over the place.
0:14:24 > 0:14:26Stairs up to your two bedrooms there
0:14:26 > 0:14:28and it's a pretty traditional layout.
0:14:28 > 0:14:30Into the...
0:14:31 > 0:14:32Eww.
0:14:32 > 0:14:36..into the slightly wonky-feeling back room.
0:14:36 > 0:14:38I'm not sure if there is a problem here but it feels,
0:14:38 > 0:14:41when you step in here, like there's definitely a slope.
0:14:41 > 0:14:44I know the road's on a slope, but I don't think that's an excuse.
0:14:44 > 0:14:48So that needs to be checked out, but it's a half-decent-sized space.
0:14:48 > 0:14:51So far, so middle of the road.
0:14:51 > 0:14:56And then...into the kitchen.
0:14:56 > 0:14:59Obviously built into some kind of little extension thing on the back here.
0:14:59 > 0:15:04This is the kitchen, there's also a loo there with a shower in it.
0:15:04 > 0:15:05Er, OK.
0:15:07 > 0:15:09HE INHALES SHARPLY
0:15:09 > 0:15:11Erm, a bit of work to be done, eh? Ahem.
0:15:13 > 0:15:17# What would you do about you
0:15:17 > 0:15:19# If you were me. #
0:15:19 > 0:15:23This property definitely needs to be ruled by the head.
0:15:23 > 0:15:25The guide price might pull you in,
0:15:25 > 0:15:27but this is not for the faint-hearted.
0:15:27 > 0:15:31Every basic needs tackling - electrics, plumbing, wonky floors
0:15:31 > 0:15:35- and the layout is not great, with the bathroom off the kitchen.
0:15:35 > 0:15:38But, on the plus side, the two rooms on the ground floor
0:15:38 > 0:15:42are a decent size and maybe opening spaces up would help.
0:15:44 > 0:15:48So, upstairs, and in one of the bedrooms, a boiler.
0:15:48 > 0:15:53Now, that looks absolutely ancient and it definitely needs to be got
0:15:53 > 0:15:56rid of and, I would say, relocate it out of the bedroom.
0:15:56 > 0:15:59We don't like boilers in bedrooms ideally.
0:15:59 > 0:16:03Erm, up here, again, this feeling, whoa, whoa, whoa.
0:16:03 > 0:16:07Upstairs, as well, is majorly sloping.
0:16:07 > 0:16:12It's a good size room and then a very traditional sort of layout.
0:16:12 > 0:16:14A little danger zone here.
0:16:16 > 0:16:19A little mini landing you have to step across to get to
0:16:19 > 0:16:22the other bedroom. Not a bad size.
0:16:22 > 0:16:24Again, very slopey down this way.
0:16:24 > 0:16:28Oh, my goodness gracious, what is that?
0:16:28 > 0:16:32Wow. Bare wires. I don't think I'll touch those.
0:16:32 > 0:16:36Just something to be aware of when you're looking round properties -
0:16:36 > 0:16:40auction ones or otherwise. Just be careful.
0:16:40 > 0:16:42MUSIC: Danger! High Voltage by Electric Six
0:16:42 > 0:16:46# Danger! Danger! High voltage
0:16:46 > 0:16:48# When we touch
0:16:48 > 0:16:51# And when we kiss. #
0:16:51 > 0:16:54So it's not just the guide price that's shocking here.
0:16:54 > 0:16:57Joking aside, there's plenty to do in this house
0:16:57 > 0:17:00and making it safe should be the first job on the list.
0:17:01 > 0:17:06Behind the property there is a communal lane that has access
0:17:06 > 0:17:08from the side of the terrace and up to some higher ground,
0:17:08 > 0:17:11from which you can get a clearer idea
0:17:11 > 0:17:13of the state the property is in.
0:17:15 > 0:17:18Good news. The main roof doesn't look to be in too bad condition.
0:17:18 > 0:17:21It's really this one that sits above the kitchen
0:17:21 > 0:17:25and the bathroom which definitely needs some attention.
0:17:25 > 0:17:30But, you know, is it going to cost a lot? Probably not.
0:17:30 > 0:17:34Another bonus when you step out the back here, you have access to this.
0:17:34 > 0:17:35This is your garden.
0:17:35 > 0:17:38I imagine at some stage that was a garage.
0:17:38 > 0:17:40Good news, there's a little access road at the back there,
0:17:40 > 0:17:43so you could have it as a usable garage.
0:17:43 > 0:17:47It's just a little bonus on a property which doesn't have to
0:17:47 > 0:17:50do much to justify its guide price, does it?
0:17:50 > 0:17:54Yes, it may be in need of a fair bit of work
0:17:54 > 0:17:59but that guide price of £15,000 is hard to argue with.
0:17:59 > 0:18:03However, we are in an area which has a ceiling price,
0:18:03 > 0:18:06so you will need to watch your budget.
0:18:07 > 0:18:10What does a local estate agent make of the property?
0:18:12 > 0:18:15This property is in need of complete refurb.
0:18:15 > 0:18:19You'd be talking new windows, new doors right throughout.
0:18:19 > 0:18:22The roof looks in pretty good condition, however fascia boards,
0:18:22 > 0:18:26guttering, external rendering would probably require attention
0:18:26 > 0:18:30and a complete refurb right through - new kitchen, new bathroom.
0:18:30 > 0:18:33As I thought, a long list of jobs ahead,
0:18:33 > 0:18:35but in an area popular with renters
0:18:35 > 0:18:39what could it expect to generate once the work is complete?
0:18:40 > 0:18:45I would expect this property to rent out for approximately £350 per calendar month.
0:18:45 > 0:18:48And how about for resale?
0:18:48 > 0:18:51Once this property is completely renovated, I would
0:18:51 > 0:18:55recommend that it would achieve somewhere in the region of £60,000.
0:18:56 > 0:18:59Potentially a few structural issues
0:18:59 > 0:19:04and definitely a lot of cosmetic ones. Oh, boy.
0:19:04 > 0:19:08Yeah, new kitchen, new bathroom, walls, plastering, electrics,
0:19:08 > 0:19:11all that kind of stuff. Still, what do you expect for 15 grand plus?
0:19:11 > 0:19:14Let's see what it actually sold for when it went under the hammer.
0:19:20 > 0:19:23It's a mid-terraced house. Requires upgrading and modernisation.
0:19:23 > 0:19:27Guided there at just £15,000. Who's going to start me?
0:19:27 > 0:19:29Start me at 15, will you?
0:19:29 > 0:19:3315. It's cheap at 15. Start me at 15, somebody. Put a hand up. 15, 12.
0:19:33 > 0:19:37Make it 10 then, just to get it off the mark, if you like. 10 can I see?
0:19:37 > 0:19:40Thank you, I've got you at 10. 11, sir, can I say? 11, thank you.
0:19:40 > 0:19:44And 12? Thank you, at 12. And 13. 13, now.
0:19:44 > 0:19:47At 12 we've got you there standing. At 12. At 13. Thank you, 13.
0:19:47 > 0:19:5114? 14? 14. 15?
0:19:51 > 0:19:5316? 16? 16.
0:19:53 > 0:19:5717? 18? 18?
0:19:57 > 0:19:5918 with you. Thank you, 18. 19 now.
0:19:59 > 0:20:0219. 20. 21?
0:20:02 > 0:20:0321, now.
0:20:03 > 0:20:04I'll take a half if it helps you.
0:20:04 > 0:20:07I've got £20,000 on my left-hand side standing here.
0:20:07 > 0:20:10For the first time at £20,000.
0:20:10 > 0:20:12And for the second time.
0:20:12 > 0:20:15Third and last time. Are we all done at £20,000?
0:20:15 > 0:20:18Sold, sir, yours. Your number, please?
0:20:18 > 0:20:22The successful bid of £20,000 belonged to Chris.
0:20:24 > 0:20:29Chris recently took early retirement from the IT and electronics sector
0:20:29 > 0:20:33and has been looking for a house to begin property developing.
0:20:33 > 0:20:35He's managed to enlist the help of his son,
0:20:35 > 0:20:38Dale, for this - his first project.
0:20:38 > 0:20:41It was back at the property where I met them both.
0:20:41 > 0:20:46- Chris, Dale, good to meet you both. - Likewise.- Congratulations.
0:20:46 > 0:20:49Tell me why you wanted to buy this place.
0:20:49 > 0:20:51I think the first attraction was the price.
0:20:51 > 0:20:56To get a house for £20,000 anywhere in the country is pretty good.
0:20:56 > 0:20:58I didn't expect to get it,
0:20:58 > 0:21:04I thought it would go for a lot more than that, maybe 25 or 30 thousand.
0:21:04 > 0:21:07In which case, I would have dropped out. I wouldn't have gone that far.
0:21:07 > 0:21:10So I really didn't expect to get this house.
0:21:10 > 0:21:14I was quite shocked it just took two bids and the house was mine.
0:21:14 > 0:21:17- Are you working together on the project?- Yes, we are.
0:21:17 > 0:21:22- First time working together?- Yes, it will be.- So how is that going to go?
0:21:22 > 0:21:24Well, we'll find out soon.
0:21:24 > 0:21:25LAUGHTER
0:21:25 > 0:21:29Chris has earmarked a 15-week timeframe to get this first
0:21:29 > 0:21:32venture into property developing done.
0:21:32 > 0:21:35So hopefully, the father and son team will run smoothly.
0:21:37 > 0:21:40So, Dale, what's your involvement in all of this?
0:21:40 > 0:21:43I'm going for the landscaping out the back,
0:21:43 > 0:21:45removal of rubble, concrete.
0:21:45 > 0:21:47Basically stripping the building back to a frame.
0:21:47 > 0:21:52- So you're the workforce, are you? - I'm demolition.- Demolition!
0:21:52 > 0:21:55Taking it all apart. What do you think the biggest issues are?
0:21:55 > 0:21:59I think getting the roof sorted - the extension roof -
0:21:59 > 0:22:02that's got to be done up front.
0:22:02 > 0:22:09I'm also moving the shower room, which is downstairs at the moment, to a bathroom upstairs.
0:22:09 > 0:22:12So that's all got to be put in, all the plumbing.
0:22:12 > 0:22:14Soil pipe and everything has got to be done for that.
0:22:14 > 0:22:16Where are you going to put that?
0:22:16 > 0:22:19It's going to go roughly above us now, in the corner
0:22:19 > 0:22:22- of the larger bedroom at the back. - Where the boiler is at the moment?
0:22:22 > 0:22:25- That's right, yes.- Is it going to be a shower room or a toilet with bath?
0:22:25 > 0:22:29- It will be a bath with a shower over the top.- Oh, great.
0:22:29 > 0:22:33And what will you do with the little toilet downstairs?
0:22:33 > 0:22:35That will become part of the kitchen,
0:22:35 > 0:22:37so it will all be opened up.
0:22:38 > 0:22:41Also the window behind me is going to go as well.
0:22:41 > 0:22:44The kitchen will be open-plan with a little dining room.
0:22:44 > 0:22:47That sounds lovely.
0:22:47 > 0:22:49What about the slopes?
0:22:49 > 0:22:52There do seem to be quite a few of them, doesn't there?
0:22:52 > 0:22:54Yes, I did notice when I viewed it.
0:22:54 > 0:22:56It's actually a bit worse than I thought.
0:22:56 > 0:22:59It's somewhere between a four- and six-inch drop
0:22:59 > 0:23:01going across the bedroom,
0:23:01 > 0:23:05so I'm going to have to re-level the boards.
0:23:05 > 0:23:08What do you reckon's gone on there? Have you got a bit of subsidence going on?
0:23:08 > 0:23:10No, I think it's the way they built these houses.
0:23:10 > 0:23:15- What, with sloping floors?- Well, I think so, yeah! I don't know.
0:23:15 > 0:23:18I don't think there's any sign of any cracking or substance,
0:23:18 > 0:23:22I just think it was literally the way they were built.
0:23:22 > 0:23:26- What's the budget for the work? - Approximately 15,000.
0:23:26 > 0:23:31- OK, so quite a healthy budget for the property.- Yes, it does need it.
0:23:31 > 0:23:34I need to bring in plumbers, gas fitters,
0:23:34 > 0:23:37electricians, so that's all part of the budget.
0:23:37 > 0:23:40Are you being paid to help?
0:23:40 > 0:23:42I don't know. It can vary, like.
0:23:42 > 0:23:45If I can get him to dig into his deep pockets.
0:23:46 > 0:23:50- You don't know yet, then? - I'll commandeer some dollar out of something.- I'll see him OK.
0:23:50 > 0:23:53You'll see him all right.
0:23:53 > 0:23:55What is the bigger-picture plan for it?
0:23:55 > 0:23:58Is it to do it up and sell it on or rent it out?
0:23:58 > 0:24:01To sell it on. I'm hoping this will be the first of many projects.
0:24:03 > 0:24:06- Actually, it was your programme to be honest...- Oh, good.
0:24:06 > 0:24:10- ..that got me interested in wanting to do this.- Great.
0:24:10 > 0:24:13Now is the opportunity to get on with it.
0:24:13 > 0:24:15Do you think this will be the first of many?
0:24:15 > 0:24:17I'm hoping that will be the case, yes.
0:24:17 > 0:24:19- Well, listen, congratulations. - Thank you very much.
0:24:19 > 0:24:23Good luck with it, and we look forward to seeing how you get on.
0:24:25 > 0:24:30So father and son team Chris and Dale embarking on their first
0:24:30 > 0:24:32property development venture together.
0:24:33 > 0:24:36Well, what do you think about the £20,000 price?
0:24:36 > 0:24:41There are bargains out there. How will they get on sorting it out?
0:24:41 > 0:24:42You can find out later in the show.
0:24:44 > 0:24:48Still to come in Walderslade, Chatham, there's trouble in the air.
0:24:48 > 0:24:51And the smell?
0:24:51 > 0:24:52HE INHALES AND COUGHS
0:24:52 > 0:24:54Worse, if anything.
0:24:56 > 0:25:00And in Abertillery in Wales, how did the father and son team get on?
0:25:00 > 0:25:03We did have some free and frank discussions at times.
0:25:11 > 0:25:14It's now back to the sought-after area of Barons Court
0:25:14 > 0:25:16in West Kensington, London.
0:25:16 > 0:25:20A desirable area of the capital where the average one-bedroom flat
0:25:20 > 0:25:22sells for around 500,000 -
0:25:22 > 0:25:26so I was excited to look around this first-floor, one-bedroom flat
0:25:26 > 0:25:29that had a guide price of 350,000 plus.
0:25:31 > 0:25:33So in here the kitchen.
0:25:33 > 0:25:35SHE KNOCKS
0:25:35 > 0:25:36Well, would we like to knock through
0:25:36 > 0:25:40and make this one great big open-plan space?
0:25:40 > 0:25:44I think so, because it's almost as though there's too much stuff
0:25:44 > 0:25:47going on in here and it's not big enough.
0:25:47 > 0:25:50But there's doors, so that must mean outside space.
0:25:51 > 0:25:53Ha-ha, I love this.
0:25:53 > 0:25:57It's only small but you do have your very own balcony in London,
0:25:57 > 0:26:01outside space, glass of wine, cup of tea, whatever.
0:26:01 > 0:26:06From here I can see shops, bars, brasseries and life.
0:26:06 > 0:26:09You're in London, what's not to like?
0:26:09 > 0:26:12There is one bit of liveliness I could live without.
0:26:12 > 0:26:15Handy for the Tube? Oh, yes, very.
0:26:15 > 0:26:19There's the track right there.
0:26:19 > 0:26:22I'm just wondering how noisy it's going to be in this flat.
0:26:22 > 0:26:24These are single-glazed.
0:26:24 > 0:26:27It might be worth spending that extra bit of money putting some
0:26:27 > 0:26:28double glazing in.
0:26:31 > 0:26:35Well, someone who was all on board for this property was Cherry,
0:26:35 > 0:26:41who went way beyond the guide price with a successful bid of 481,000.
0:26:42 > 0:26:46Cherry had with her friend and personal trainer Charlie,
0:26:46 > 0:26:48who would be helping her with the renovation.
0:26:50 > 0:26:54- So guys, how did this all come about? Was it over a training session?- Yes.
0:26:54 > 0:26:56- It actually was.- Was it?
0:26:56 > 0:26:58You should have been sweating and doing lots of hard work.
0:26:58 > 0:27:03She was out of breath so when I put it across to her she couldn't really say no. So, yeah.
0:27:03 > 0:27:05So Charlie, what is the magic touch? Tell me.
0:27:05 > 0:27:09The magic touch is light and airy, I suppose.
0:27:09 > 0:27:15We just need to go high-quality and I think that will sell this.
0:27:15 > 0:27:18Once refurbished, Cherry was keen to sell the property
0:27:18 > 0:27:21and had earmarked a three-month timescale for the jobs.
0:27:21 > 0:27:24But with an impractical bathroom entrance
0:27:24 > 0:27:28and a cluttered and dated flat she had a long list of jobs ahead.
0:27:32 > 0:27:34It's now six months later
0:27:34 > 0:27:38and we've returned to Barons Court to see how the work's gone.
0:27:50 > 0:27:54Yup, they certainly promised a little Charlie magic, and there it is.
0:27:54 > 0:27:57A terrific transformation,
0:27:57 > 0:27:59taking out the wall that divided the living room and the kitchen,
0:27:59 > 0:28:03and it's created an up-to-the-minute open-plan space,
0:28:03 > 0:28:06perfect for the young professionals they're hoping to attract.
0:28:07 > 0:28:10I'm glad they've utilised that cupboard.
0:28:10 > 0:28:14It's now part of the living area, not a square foot wasted at all.
0:28:14 > 0:28:17The boiler is now a combi and it's in the kitchen.
0:28:25 > 0:28:29The bedroom has been tastefully decorated to a high standard
0:28:29 > 0:28:31and although I would've liked to have seen
0:28:31 > 0:28:33a separate entrance to the bathroom,
0:28:33 > 0:28:37there's no doubt that these clean lines are stylish and practical.
0:28:45 > 0:28:48Time to catch up with Cherry and Charlie
0:28:48 > 0:28:51to find out how it's all been for them.
0:28:51 > 0:28:54I'm most pleased with the overall look of the flat.
0:28:54 > 0:28:58If we remember what the flat was actually like, with woodchip
0:28:58 > 0:29:01everywhere, really revolting green colour.
0:29:01 > 0:29:03But just to see the transformation
0:29:03 > 0:29:08and, you know, the flat was very sorry for itself in the early days
0:29:08 > 0:29:10and now it's just fantastic.
0:29:10 > 0:29:13I think anyone would want to live here, particularly
0:29:13 > 0:29:17a young professional - which is who I would see living here.
0:29:17 > 0:29:20When I was that age, I definitely would have loved to have lived here.
0:29:23 > 0:29:27So with this, their first venture into property development together,
0:29:27 > 0:29:29how has it all worked out?
0:29:29 > 0:29:32My role was pretty much dealing with the builders
0:29:32 > 0:29:35and getting the work ready and going,
0:29:35 > 0:29:36liaising with everyone,
0:29:36 > 0:29:40making sure everyone's on time and what have you.
0:29:40 > 0:29:42I actually did a bit of work in the flat, as well.
0:29:42 > 0:29:45I had to take some wallpaper down, stripping wallpaper,
0:29:45 > 0:29:50clearing some rubbish, some of the tiling. Well, all of the tiling.
0:29:50 > 0:29:55But apart from that, yeah, I've pretty much been...in doing the work
0:29:55 > 0:29:58and taking Cherry's orders.
0:29:58 > 0:30:01Quite right too.
0:30:02 > 0:30:06So I have not really been that much involved in what's been going on.
0:30:06 > 0:30:10I like choosing colours and deciding
0:30:10 > 0:30:15what the carpet is going to be like and which tiles we're using.
0:30:15 > 0:30:16I really enjoyed doing all that
0:30:16 > 0:30:19but I haven't got my hands dirty at all, I have to confess.
0:30:19 > 0:30:23- You did help me with the wallpapering once.- Did I?- Yeah.
0:30:23 > 0:30:26Oh, I did pull a bit of wallpaper down over there somewhere.
0:30:28 > 0:30:30A lady after my own heart.
0:30:30 > 0:30:33Because of a change to the permission from the freeholders
0:30:33 > 0:30:35to do the work, it actually took five months
0:30:35 > 0:30:40and their budget of £20,000, plus a five grand contingency,
0:30:40 > 0:30:42came in at £23,000.
0:30:42 > 0:30:47Which I think is not bad at all considering the transformation here.
0:30:47 > 0:30:51However, one of the big concerns was the sound of the trains outside.
0:30:51 > 0:30:54What happened to the idea of double glazing the windows to tackle
0:30:54 > 0:30:55the noise?
0:30:55 > 0:30:58This is a leasehold flat, it's not freehold,
0:30:58 > 0:31:00so the freeholder is Hammersmith and Fulham Council
0:31:00 > 0:31:03and they're responsible for all the windows.
0:31:03 > 0:31:06One of the things I've been doing is trying to find out from them
0:31:06 > 0:31:09when they're actually going to redo all the windows and whether
0:31:09 > 0:31:13it was worth it for me to actually invest in doing the windows.
0:31:13 > 0:31:17So I have actually got in writing from them that they're going to do
0:31:17 > 0:31:21that at the beginning of next year, so all the windows will be replaced.
0:31:23 > 0:31:27Putting aside any future costs of the share of the windows,
0:31:27 > 0:31:30Cherry has invested 504,000 in this flat.
0:31:30 > 0:31:34You may recall Cherry's husband was not best pleased that she
0:31:34 > 0:31:38paid 131,000 over the guide price.
0:31:38 > 0:31:41So who will be eating humble pie?
0:31:41 > 0:31:44Let's see what two local estate agents reckon.
0:31:44 > 0:31:46First, the one who visited last time.
0:31:48 > 0:31:51The work seems to have been finished to a good standard
0:31:51 > 0:31:57and it's been neutrally decorated so it will appeal to first-time buyers,
0:31:57 > 0:32:01young professionals that we have in this area, as well as renters.
0:32:01 > 0:32:03I think the layout is very good.
0:32:03 > 0:32:06It was a good idea to open up the kitchen area.
0:32:06 > 0:32:11It gives a better idea and better feeling of space.
0:32:11 > 0:32:16So the agents are impressed, but what about those all-important valuations?
0:32:16 > 0:32:20Remember, Cherry has invested £504,000 here.
0:32:22 > 0:32:29I would suggest a marketing figure between £500,000 and £550,000
0:32:29 > 0:32:32and expect to achieve fairly close to those figures.
0:32:32 > 0:32:33For sale, I think
0:32:33 > 0:32:39this property would sell at approximately £525,000.
0:32:40 > 0:32:44I'm quite disappointed with that, with 525,000.
0:32:44 > 0:32:48I would like to get more than that and I think, when we originally
0:32:48 > 0:32:52started with this flat, we did talk to a couple of estate agents about
0:32:52 > 0:32:53how much we thought we would get
0:32:53 > 0:32:56and they said more around the 550-plus mark.
0:32:56 > 0:32:59So I'd be happier to get something a bit higher.
0:33:00 > 0:33:05Well, if Cherry did achieve her preferred 550,000, that would
0:33:05 > 0:33:08mean a pre-tax profit of £46,000,
0:33:08 > 0:33:12and with the estate agents predicting an average rental
0:33:12 > 0:33:16of £1,475 per calendar month, bringing in a rental yield
0:33:16 > 0:33:21of over 3.5%, it leaves Cherry with a decision to make.
0:33:21 > 0:33:24I think we should put it on the market and just see what happens.
0:33:24 > 0:33:27See how much interest there is in it.
0:33:27 > 0:33:31If we decide that it's not going to go for as much as we want it to
0:33:31 > 0:33:33then we'll probably rent it out.
0:33:37 > 0:33:40We're going a little back in time now to February 2014
0:33:40 > 0:33:44and the area of Walderslade, only 10 minutes from Chatham.
0:33:46 > 0:33:50It's a popular area well served with commuter links.
0:33:50 > 0:33:53When the property that was up for auction was
0:33:53 > 0:33:56described as substantial, with a guide price
0:33:56 > 0:33:58of just £200-£210,000
0:33:58 > 0:34:02you've got to think, "Whoa-ho-ho, this could be brilliant."
0:34:02 > 0:34:07Behind this rather... mishmash of trees and shrubs
0:34:07 > 0:34:10is the property itself, and substantial it most certainly is.
0:34:10 > 0:34:13Two doors to go into. Which one should we choose?
0:34:13 > 0:34:14Eeny-meeny-miny-mo...
0:34:14 > 0:34:15That one!
0:34:17 > 0:34:19One side of this property was a semi
0:34:19 > 0:34:23and this side was divided into two flats.
0:34:23 > 0:34:24But, oh dear.
0:34:24 > 0:34:26The first thing is, the moment you walk through the door, this
0:34:26 > 0:34:29overwhelming smell of damp,
0:34:29 > 0:34:32and it is dark and dingy and... not very good,
0:34:32 > 0:34:34but it's not a bad size space.
0:34:34 > 0:34:38But clearly, serious things are going wrong.
0:34:38 > 0:34:40Shall we tempt fate, shall we?
0:34:40 > 0:34:41HE INHALES SHARPLY
0:34:41 > 0:34:44I should've brought my umbrella.
0:34:44 > 0:34:47Yeah, look at that. Not good at all.
0:34:48 > 0:34:50Right. Bit of work to be done then.
0:34:50 > 0:34:53MUSIC: Dirty, Dirty Feeling by Elvis Presley
0:34:53 > 0:34:55# I got a dirty, dirty feeling
0:34:55 > 0:34:57# Dirty feeling's goin' on. #
0:34:59 > 0:35:01It was a substantial property,
0:35:01 > 0:35:05but clearly there was a substantial amount of work to do.
0:35:05 > 0:35:08On the plus side, it had a decent-sized lounge,
0:35:08 > 0:35:10bedroom and bathroom.
0:35:10 > 0:35:12It was double-glazed and had a garden.
0:35:15 > 0:35:18Would it be smelling of roses in the upstairs flat, though?
0:35:20 > 0:35:25Worse, if anything. Not good at all. What is good is the size.
0:35:25 > 0:35:29Like downstairs, a really nice size living room here.
0:35:29 > 0:35:36Through to the kitchen. Now, it's kind of a kitchen with...two sides.
0:35:36 > 0:35:41This side here, well, you know, old units but nothing too dramatic.
0:35:41 > 0:35:44This side, however...
0:35:44 > 0:35:45not good.
0:35:47 > 0:35:50So there were some definite issues with the roof.
0:35:50 > 0:35:53But at least the bedroom was looking in the pink
0:35:53 > 0:35:56and it had access to a roof terrace.
0:35:58 > 0:36:03But the bathroom was a little odd, with a bath wrapped in carpet.
0:36:03 > 0:36:07Yes, that's a new one on me, and hopefully never to be repeated.
0:36:07 > 0:36:10And the outside needed some work for sure.
0:36:15 > 0:36:19Next door in this really substantial property was this semi-detached
0:36:19 > 0:36:24three-bedroom house and I had my nose at the ready for the smell of damp.
0:36:24 > 0:36:27But the air of neglect wasn't present on that side
0:36:27 > 0:36:30and the air was fresh and clean.
0:36:30 > 0:36:33But it was all a bit dated, especially in the kitchen department.
0:36:35 > 0:36:39The only downside I could see was that this property was right next to
0:36:39 > 0:36:43a school, but I guess if you had kids the proximity could be a plus.
0:36:46 > 0:36:49Upstairs the house ticked all the family boxes,
0:36:49 > 0:36:53with three decent bedrooms...
0:36:53 > 0:36:56a separate bathroom and toilet...
0:36:58 > 0:37:01..and there was double glazing throughout
0:37:01 > 0:37:04and what looked like a fairly new boiler.
0:37:04 > 0:37:07So this was indeed a property of two halves,
0:37:07 > 0:37:11but with what was a guide price of £200-210,000
0:37:11 > 0:37:14I expected it to be a popular lot at the auction.
0:37:16 > 0:37:19A property developer's dream, I would have thought.
0:37:19 > 0:37:21Start me where you will. Good-sized plot.
0:37:21 > 0:37:23180? 180 do I say?
0:37:23 > 0:37:25180. 180, I'm on the way.
0:37:25 > 0:37:26190 I'm bid. 190.
0:37:26 > 0:37:29200? 200 if you like.
0:37:29 > 0:37:32195 I've got on my right. 200 if you like?
0:37:32 > 0:37:35200 I am bid. 205 now if you like?
0:37:35 > 0:37:42'The lot did indeed prove popular and we rejoined it at £300,000.'
0:37:42 > 0:37:43300. And five.
0:37:43 > 0:37:45305 I'm look for.
0:37:45 > 0:37:47305. And ten.
0:37:47 > 0:37:50307? 307 I've got.
0:37:50 > 0:37:51And 310.
0:37:51 > 0:37:53312? No, definitely not.
0:37:53 > 0:37:56At £310,000 in the front row, then, for the first time.
0:37:56 > 0:37:59£310,000 for the second time.
0:37:59 > 0:38:02Third and final time at 310 in the front row. Make no mistake.
0:38:02 > 0:38:04All done?
0:38:04 > 0:38:06- GAVEL BANGS - £310,000.
0:38:07 > 0:38:12The lot was bought for £310,000 by Robin, who works in insurance
0:38:12 > 0:38:16but has developed new builds before.
0:38:17 > 0:38:20So this was a departure for him
0:38:20 > 0:38:23and his two sisters are silent partners in the venture.
0:38:24 > 0:38:27The reason why we did it is because it's difficult
0:38:27 > 0:38:31to get off plan in London now at a good price,
0:38:31 > 0:38:35erm, so it seems a natural course of events for us
0:38:35 > 0:38:38to move into auction property.
0:38:38 > 0:38:42This was a big property, not Robin's usual territory.
0:38:42 > 0:38:46But he did have a secret weapon.
0:38:46 > 0:38:48I've got a contractor.
0:38:48 > 0:38:53He's worked for me on a conversion that I've just recently done.
0:38:53 > 0:38:54The contractor, Paul,
0:38:54 > 0:38:58- has done an excellent job in a short period of time.- Right.
0:38:58 > 0:39:03- We work very well together. It just seemed a perfect marriage.- Great.
0:39:03 > 0:39:05- So, has he seen it yet?- He has.
0:39:05 > 0:39:06He came with us
0:39:06 > 0:39:09when we viewed it initially before going to the auction.
0:39:09 > 0:39:13We got an idea from him as to what it will cost to do it up.
0:39:13 > 0:39:15What did he say?
0:39:15 > 0:39:20- Approximately 40,000.- To do both? - To do all three.- Everything? - Everything.- Wow!
0:39:20 > 0:39:24- The grounds, landscaping, the whole lot.- Bit of a deal really.
0:39:24 > 0:39:29It's a bit of a deal. But, with Paul, I've always got a good deal from him.
0:39:29 > 0:39:33A 40-grand costing seems like a stonking deal to me
0:39:33 > 0:39:37and Robin's timescale of up to six months seemed pretty realistic.
0:39:38 > 0:39:40Well, that was in February 2014
0:39:40 > 0:39:43and when we returned five months later
0:39:43 > 0:39:45things were looking promising.
0:39:45 > 0:39:47Or, should I say, part of it was.
0:39:47 > 0:39:49MUSIC: Living On A Prayer by Bon Jovi
0:39:49 > 0:39:52# Ohh, we're halfway there
0:39:52 > 0:39:56# Ohh, livin' on a prayer
0:39:56 > 0:40:00# Take my hand, we'll make it I swear
0:40:00 > 0:40:04# Oh, living on a prayer
0:40:04 > 0:40:08# Living on a prayer... #
0:40:08 > 0:40:11The three-bed house was nearly complete and ready to go.
0:40:22 > 0:40:25But less ready - well, actually relatively untouched -
0:40:25 > 0:40:30were the flats, which were more or less as we left them.
0:40:30 > 0:40:33So let us hand over to the wondrous Paul the builder to find out
0:40:33 > 0:40:36what he still had on his to-do list.
0:40:38 > 0:40:42First, complete refurb, rewiring, no central heating in at the moment.
0:40:42 > 0:40:44New kitchens, bathrooms,
0:40:44 > 0:40:47turn the upstairs flat into a two-bedroom from a one-bedroom.
0:40:47 > 0:40:50So halfway there by the sound and look of things.
0:40:50 > 0:40:53Was Robin worried about the timescale having slipped?
0:40:53 > 0:40:57The house will be finished in the next seven to ten days roughly.
0:40:57 > 0:41:00As soon as they're done, we're going to put this house on the market
0:41:00 > 0:41:04and Paul will start on the flats. Paul has already kind of started.
0:41:04 > 0:41:08We envisage it will be done within the next two to three months
0:41:08 > 0:41:12and then the whole project will have reached its conclusion.
0:41:12 > 0:41:15Whilst Robin had experience of off-plan new builds,
0:41:15 > 0:41:18he was a novice when it came to renovation projects
0:41:18 > 0:41:21and this one proved to be a learning experience.
0:41:21 > 0:41:25This is a lot more involved and obviously I'm looking to make a profit from this,
0:41:25 > 0:41:30so I'm constantly watching how things are progressing.
0:41:30 > 0:41:35We have asked other professionals in terms of the level of work
0:41:35 > 0:41:39we should put in and what we would get back in return.
0:41:39 > 0:41:44So where we originally thought we might put a granite kitchen in
0:41:44 > 0:41:48we've been advised that it's not going to make much of a difference.
0:41:48 > 0:41:51So Robin had his eye on the profit margins
0:41:51 > 0:41:54and nine months after our first visit we're going back again
0:41:54 > 0:41:58and you can see how Robin's project has progressed later in the show.
0:41:58 > 0:42:01MUSIC: See You Later Alligator by Bill Haley and the Comets
0:42:01 > 0:42:03# See you later, alligator
0:42:03 > 0:42:05# After a while, crocodile. #
0:42:09 > 0:42:12Well, there you go, that is one property done and dusted.
0:42:12 > 0:42:14But what about the other two? How have they fared?
0:42:14 > 0:42:17- Have they proved to be good investments?- Shall we find out?
0:42:17 > 0:42:19Let's do it.
0:42:19 > 0:42:21# Yeeaaaaahhhhhh... #
0:42:23 > 0:42:27That voice can only mean one thing, we're back in Abertillery,
0:42:27 > 0:42:31once a venue for the talent of the legendary Tom Jones.
0:42:31 > 0:42:35The house we were here to see, though, was far from legendary.
0:42:35 > 0:42:39This was a cosmetic catastrophe and with some suspicious
0:42:39 > 0:42:43sloping floors this two-bedroom terrace needed a lot of work.
0:42:45 > 0:42:50This is the kitchen and there's also a loo there with a shower in it.
0:42:52 > 0:42:53Erm, a bit of work to be done, eh?
0:42:55 > 0:42:59Not only that, there was a dodgy-looking roof out the back.
0:42:59 > 0:43:03So what could possibly interest potential buyers?
0:43:03 > 0:43:08Hang on, did I mention the guide price was only £15,000?
0:43:08 > 0:43:11I did, did I?
0:43:11 > 0:43:13Yeah, that ought to do it.
0:43:13 > 0:43:15# It's a steal
0:43:18 > 0:43:20# It's a steal. #
0:43:20 > 0:43:22OK, so maybe not quite a steal,
0:43:22 > 0:43:26but certainly low enough to tempt Chris and son Dale
0:43:26 > 0:43:30to make the successful bid of £20,000.
0:43:30 > 0:43:31It was a big challenge,
0:43:31 > 0:43:35but one Chris had been looking for for a while.
0:43:35 > 0:43:38I've been looking for a house for a project
0:43:38 > 0:43:41since I took early retirement a couple of years ago.
0:43:41 > 0:43:44So, Dale, what's your involvement in all of this?
0:43:44 > 0:43:47I'm going for the landscaping at the back, removal of rubble
0:43:47 > 0:43:52and concrete, basically stripping the building back to a frame.
0:43:52 > 0:43:55- So you're the workforce, are you? - I'm demolition.- Demolition!
0:43:55 > 0:43:57Take it all apart.
0:43:57 > 0:43:59With Demolition Dale on hand,
0:43:59 > 0:44:04£15,000 and a timescale of 15 weeks, Chris looked on course.
0:44:04 > 0:44:07Nothing could go wrong. Could it?
0:44:11 > 0:44:14Eight months later and we return to meet up with Chris
0:44:14 > 0:44:20and Dale to see if they made a new home out of that run-down residence.
0:44:20 > 0:44:22MUSIC: Something New by Girls Aloud
0:44:22 > 0:44:24# We girls gonna run this, run this
0:44:24 > 0:44:27# All I want is something new
0:44:27 > 0:44:30# Something I can hold on to... #
0:44:31 > 0:44:33Chris has done a terrific job,
0:44:33 > 0:44:37knocking down walls to open up the space and giving the house
0:44:37 > 0:44:42a full modernisation, including moving that bathroom upstairs.
0:44:42 > 0:44:46But there was a lot of work to tackle and they're not there yet,
0:44:46 > 0:44:48so what have they done?
0:44:51 > 0:44:54Since you were last here, we've done a lot of work on the property.
0:44:54 > 0:44:57It was a complete wreck when we bought it.
0:44:57 > 0:45:00The house has been completely rewired, re-plumbed,
0:45:00 > 0:45:04new central heating, it's also been completely plastered,
0:45:04 > 0:45:07every wall in the house and ceilings have been plastered.
0:45:08 > 0:45:12New windows and doors fitted, outside and inside.
0:45:12 > 0:45:15There was a slope upstairs in both bedrooms,
0:45:15 > 0:45:19approximately 5-6 inches from one end to the other.
0:45:19 > 0:45:22What I had to do is take up all the floorboards
0:45:22 > 0:45:27and put timber on top of the existing joists.
0:45:27 > 0:45:30It was a massive job, but I did that myself.
0:45:30 > 0:45:32MUSIC: Got My Mojo Working by Muddy Waters
0:45:32 > 0:45:36# Got my mojo working but it just won't work on you... #
0:45:37 > 0:45:40In fact, Chris did most of the work himself, just getting
0:45:40 > 0:45:45professionals in for the rewiring, plumbing and central heating.
0:45:45 > 0:45:48He even built the new partition wall in one of the bedrooms,
0:45:48 > 0:45:53allowing him to move the bathroom upstairs. That's good thinking.
0:45:53 > 0:45:56So, how is it working with Dale?
0:45:56 > 0:46:01This project is the first father-son project we've attempted.
0:46:01 > 0:46:06Erm, we did have some free and frank discussions at times about methods
0:46:06 > 0:46:11of demolishing walls, but in the end I just let Dale get on with it.
0:46:13 > 0:46:19- Yes, he also helped me fill up a few skips as well.- Four skips.
0:46:19 > 0:46:21- Three.- Four.
0:46:21 > 0:46:23MUSIC: Parents Just Don't Understand by DJ Jazzy Jeff and the Fresh Prince
0:46:23 > 0:46:27# There's no need to argue Parents just don't understand... #
0:46:27 > 0:46:30Oh, don't worry Dale, I'm sure the help was appreciated.
0:46:30 > 0:46:33Especially as Chris ran into a bit of bother.
0:46:34 > 0:46:38An unexpected problem we came up against was building regulations.
0:46:39 > 0:46:45Because we'd opened up the house downstairs, we lost the protected fire escape.
0:46:45 > 0:46:47So I had to put in fire doors
0:46:47 > 0:46:50and fire escapes to windows upstairs,
0:46:50 > 0:46:53which I wasn't expecting and hadn't budgeted for.
0:46:53 > 0:46:58Now, here lies a cautionary tale for all you open-plan aficionados.
0:46:58 > 0:47:00Because Chris took down the wall
0:47:00 > 0:47:03of the passageway from the stairs to the front door,
0:47:03 > 0:47:07this meant he'd removed a safe route out in the event of a fire,
0:47:07 > 0:47:11hence having to put in windows upstairs to allow easy escape.
0:47:11 > 0:47:14There was another planning regulation issue that came up
0:47:14 > 0:47:15with that extension roof.
0:47:15 > 0:47:17We got a builder up here to look at it
0:47:17 > 0:47:20and he said it'd be better to actually replace it.
0:47:20 > 0:47:23Buildings Control wanted a flat roof
0:47:23 > 0:47:27to add some strength to the roof structure.
0:47:27 > 0:47:30I didn't, I wanted a bit of height to the room.
0:47:30 > 0:47:34So I came up with a compromise of part flat and part sloping
0:47:34 > 0:47:36and they were quite happy with that.
0:47:36 > 0:47:40Unexpected budgetary items - that's not good news.
0:47:40 > 0:47:43I've actually spent nearer 20.
0:47:43 > 0:47:48The extra money has gone into the fact that the plans changed a bit.
0:47:48 > 0:47:50Also the length of time it's taken.
0:47:50 > 0:47:53Having to change plans can cost money and, of course, time.
0:47:53 > 0:47:56As can having to adhere to regulations,
0:47:56 > 0:47:58as Chris has discovered.
0:47:58 > 0:48:02He's gone well past his original 15-week timescale.
0:48:02 > 0:48:07The reason for that was probably the fact I'm new to this game
0:48:07 > 0:48:10and I find that things you estimate are going to take one day
0:48:10 > 0:48:13take two or three days to complete.
0:48:14 > 0:48:17Property developing definitely has a steep learning curve.
0:48:17 > 0:48:20Estimating how long things will take is a skill that often comes
0:48:20 > 0:48:22with bitter experience,
0:48:22 > 0:48:25so it's always worth having a good contingency fund.
0:48:25 > 0:48:28Has Chris' total spend of £20,000
0:48:28 > 0:48:32on top of the original £20,000 purchase price been worth it?
0:48:32 > 0:48:37We've asked along two local property experts to get their opinion.
0:48:39 > 0:48:41I'm really impressed with the improvements carried out here.
0:48:41 > 0:48:45I think the renovation is a high-quality renovation.
0:48:45 > 0:48:48I'm really impressed with the rebuild at the back of the property.
0:48:48 > 0:48:51Nice that the bathroom is now upstairs as well.
0:48:51 > 0:48:53I like the layout of the property downstairs,
0:48:53 > 0:48:56I like the open-plan kitchen with the living area.
0:48:56 > 0:48:59The downside of the property is there's no off-street parking
0:48:59 > 0:49:01and the garden is relatively small.
0:49:01 > 0:49:05They certainly seem impressed with the changes Chris has made,
0:49:05 > 0:49:09though David seems disappointed off-street parking wasn't added.
0:49:09 > 0:49:12But Chris has looked into that and there isn't room to turn a car.
0:49:13 > 0:49:16Chris has spent a total of £40,000.
0:49:16 > 0:49:19What do our experts think this property is now worth?
0:49:21 > 0:49:23With the current market conditions,
0:49:23 > 0:49:27I would recommend an asking price of £57,500.
0:49:27 > 0:49:29If this property was on the market, I would expected to achieve
0:49:29 > 0:49:32somewhere in the region of £60,000.
0:49:33 > 0:49:36Those evaluations are about right, actually.
0:49:36 > 0:49:39I would be looking to put it on the market at 60,000
0:49:39 > 0:49:41and hope to achieve very near to that.
0:49:42 > 0:49:45If Chris does achieve that top valuation of 60,000,
0:49:45 > 0:49:49he will have made a potential profit of £20,000,
0:49:49 > 0:49:51minus the usual taxes and expenses.
0:49:51 > 0:49:55Plus, with both estate agents estimating a monthly rental
0:49:55 > 0:49:57of £325 per calendar month,
0:49:57 > 0:50:00equating to a possible yield of over 9%,
0:50:00 > 0:50:02this project is something of a success.
0:50:06 > 0:50:09It's been hard work, it's taken a lot longer than I thought
0:50:09 > 0:50:11and it's cost more money.
0:50:11 > 0:50:15But I've got no regrets about trying it and I'd like to do it again.
0:50:20 > 0:50:24It was back in February 2014 when we first took a trip
0:50:24 > 0:50:27to the outskirts of Chatham in Kent.
0:50:27 > 0:50:31It was here we saw a large, dilapidated lot.
0:50:31 > 0:50:33Essentially two semi-detached houses,
0:50:33 > 0:50:36one of which had been converted into two one-bedroom flats.
0:50:36 > 0:50:40And so, with three potential properties up for grabs,
0:50:40 > 0:50:42the temptation was too much
0:50:42 > 0:50:47for insurance claims adjuster and part-time property developer Robin.
0:50:47 > 0:50:51Having paid £310,000 at auction, with a £40,000 budget,
0:50:51 > 0:50:55he hoped with help from his builder, Paul, he could do up
0:50:55 > 0:50:58and refurbish all three properties in just six months.
0:51:01 > 0:51:04But when we returned five months after our first visit, well,
0:51:04 > 0:51:07Robin and Paul were around the halfway mark
0:51:07 > 0:51:10with the three-bed house just about completed.
0:51:22 > 0:51:25The house will be finished within the next 7-10 days, roughly.
0:51:25 > 0:51:29As soon as they're done, we're going to put this house on the market
0:51:29 > 0:51:31and Paul will start on the flats.
0:51:31 > 0:51:34We envisage it will all be done within the next 2-3 months
0:51:34 > 0:51:38and then the whole project will have reached its conclusion.
0:51:41 > 0:51:45So steady progress has been made, but what about those flats?
0:51:45 > 0:51:48Were they to have the same happy ending as the house?
0:51:48 > 0:51:52Nearly 10 months since I first stepped through into that
0:51:52 > 0:51:55somewhat damp and neglected building, we are back.
0:52:00 > 0:52:04The whole building is looking great, with new guttering,
0:52:04 > 0:52:06roof tiles and windows.
0:52:06 > 0:52:10It's ready for whatever the Kent weather throws at it.
0:52:10 > 0:52:11And those flats?
0:52:15 > 0:52:18Well, the downstairs one-bed flat is certainly looking good,
0:52:18 > 0:52:23with new flooring, skirting, central heating, decor, the lot.
0:52:36 > 0:52:39But, with no layout changes, this flat was always the more
0:52:39 > 0:52:41straightforward of the two.
0:52:41 > 0:52:45Whereas the upstairs one was a completely different proposition.
0:52:48 > 0:52:51This was the old kitchen where we had units here
0:52:51 > 0:52:53and units over this side.
0:52:53 > 0:52:56As you can see, it's completely changed.
0:52:56 > 0:52:57We had the doorway here,
0:52:57 > 0:53:00which led from the living room into the kitchen.
0:53:00 > 0:53:03That obviously has all been blocked up and, yeah, you can see
0:53:03 > 0:53:06it's a lovely bathroom and a decent-sized one for that.
0:53:06 > 0:53:11We've obviously moved the kitchen from here to over here,
0:53:11 > 0:53:14which is now the new kitchen.
0:53:14 > 0:53:19This has now been turned into a living, kitchen, dining area.
0:53:19 > 0:53:21Well, that really works
0:53:21 > 0:53:24and the reorganising of the space didn't stop in the kitchen/diner.
0:53:26 > 0:53:30One of the biggest changes was to turn this bathroom
0:53:30 > 0:53:33into a bedroom and this is what we've done.
0:53:33 > 0:53:34It wasn't very hard to do.
0:53:34 > 0:53:39We took the bath out, the sink out, et cetera, and here you go.
0:53:40 > 0:53:44The layout changes enable them to make this a two-bedroom flat
0:53:44 > 0:53:47with the master bedroom having the benefit of access
0:53:47 > 0:53:49onto a small roof terrace.
0:53:49 > 0:53:50Nice.
0:53:54 > 0:53:58And so finally this multifaceted project is nearly finished.
0:53:58 > 0:54:01So did Robin's builder, Paul, have a team of builders working here?
0:54:03 > 0:54:09There was me and someone else 2-3 times a week. That was it.
0:54:09 > 0:54:11The biggest challenge is just prioritising it
0:54:11 > 0:54:14and getting everything done in the right order.
0:54:14 > 0:54:18It's certainly impressive that Paul has done all the hard work
0:54:18 > 0:54:20almost single-handed.
0:54:20 > 0:54:23But Robin was there to project-manage the refurbishment
0:54:23 > 0:54:26and, having previously invested in new builds,
0:54:26 > 0:54:29buying many off-plan, this renovation was a new departure
0:54:29 > 0:54:34for him, having to take control of both the budget and the timescale.
0:54:36 > 0:54:39With the house we did go over a bit, slightly.
0:54:39 > 0:54:43But it's a good thing that we did do because we concentrated
0:54:43 > 0:54:49on each property and gave it the attention all of them have deserved.
0:54:49 > 0:54:51Ah, yes, the three-bed house.
0:54:51 > 0:54:55Last time we saw that, it was nearly ready to go on the resell market.
0:54:57 > 0:55:00Since your last visit, the house has been sold.
0:55:00 > 0:55:03We got 260,000 for the house,
0:55:03 > 0:55:08which is within a reasonable price bracket.
0:55:08 > 0:55:10That's good news.
0:55:10 > 0:55:16Robin spent £25,000 of his total £40,000 refurbishment on the house.
0:55:16 > 0:55:21So is his budget safe? How much have the flats cost to renovate?
0:55:21 > 0:55:26I think we spend approximately 22,000 for both flats together.
0:55:26 > 0:55:29It's gone slightly above the original budget,
0:55:29 > 0:55:32but I think it's still within a comfortable frame.
0:55:33 > 0:55:35OK, numbers time.
0:55:35 > 0:55:37Robin bought the lot for £310,000
0:55:37 > 0:55:42and has spent £47,000 renovating the semi and the flats.
0:55:42 > 0:55:46A grand total of £357,000.
0:55:46 > 0:55:50But don't forget he's already sold the house for £260,000.
0:55:50 > 0:55:53So, to give him any profit,
0:55:53 > 0:55:58the flats need to be worth more than £97,000.
0:55:58 > 0:56:00Are you still with me?
0:56:00 > 0:56:01No? Oh, well.
0:56:01 > 0:56:05Let's find out what the estate agents think of the flats.
0:56:05 > 0:56:08I really like the changes in the two properties.
0:56:08 > 0:56:11They've managed to work the rooms round very well,
0:56:11 > 0:56:15moving bathrooms to bedrooms to kitchens.
0:56:15 > 0:56:18Everything works very, very well and flows very well.
0:56:18 > 0:56:22I think the layout change with the two-bedroom flat was
0:56:22 > 0:56:24a fantastic idea.
0:56:24 > 0:56:27Flats in this area are really unique, they don't come up.
0:56:28 > 0:56:32To change the layout, you've still got a really nice, big bathroom
0:56:32 > 0:56:35but added space with two bedrooms. Perfect.
0:56:35 > 0:56:37Well, that's encouraging.
0:56:37 > 0:56:40It seems he made a good call on the layout change, but more
0:56:40 > 0:56:43importantly how much are the flats worth on the current market?
0:56:43 > 0:56:48Remember he has to get valuations of £97,000
0:56:48 > 0:56:51to get past break-even point.
0:56:51 > 0:56:53For the one-bedroom property I would value that
0:56:53 > 0:56:56in the region of £155,000.
0:56:56 > 0:57:02The ground-floor one-bedroom flat I would value at £140-150,000.
0:57:02 > 0:57:07And the two-bed flat upstairs? What's that currently worth?
0:57:07 > 0:57:09I would value the two-bedroom property
0:57:09 > 0:57:12in the sales market for £180,000.
0:57:12 > 0:57:14The two-bedroom first-floor flat,
0:57:14 > 0:57:20because of how unique it is, I'd market between £170-£180,000.
0:57:20 > 0:57:25And, with a combined valuation of £310-£335,000,
0:57:25 > 0:57:30plus the £260,000 he's already got for selling the house,
0:57:30 > 0:57:34Robin potentially is looking at a pre-tax profit
0:57:34 > 0:57:39of between £213-£238,000.
0:57:39 > 0:57:42Whoa! So what does he make of that?
0:57:44 > 0:57:50That is more than I had expected, which is obviously pleasing.
0:57:50 > 0:57:52Yeah, so, going forward,
0:57:52 > 0:57:56this is something that I'm looking to turn into a full-time career -
0:57:56 > 0:57:57property development.
0:58:00 > 0:58:03Well, that's it for today's show, but we'll have lots more
0:58:03 > 0:58:07projects from bedsits to large family homes for you next time.
0:58:07 > 0:58:11We'll be bringing their stories to you very soon, so join us then on Homes Under The Hammer.
0:58:11 > 0:58:12- Goodbye.- Goodbye.