0:00:02 > 0:00:04- Hello, and welcome. - Property developing is about
0:00:04 > 0:00:06so many different things. Yes, it can be about making money,
0:00:06 > 0:00:10but it's also about the satisfaction of transforming a run-down building.
0:00:10 > 0:00:13Yeah, creating a project like that then means
0:00:13 > 0:00:17it's not just about the damp course, the electrics, the lighting.
0:00:17 > 0:00:19It's more about creating a home.
0:00:19 > 0:00:22Yes, but how do you pick the property to start with?
0:00:22 > 0:00:25Well, one way could be heading to your auctions.
0:00:51 > 0:00:54The key to success is do your homework.
0:00:54 > 0:00:57Give yourself the best chance to get the property at the best price.
0:00:57 > 0:01:00And also, to plan a budget,
0:01:00 > 0:01:03to make sure you've got enough money to get the job completed.
0:01:03 > 0:01:06So, what inspired the bidders on today's programme?
0:01:07 > 0:01:11Up first, in Edinburgh, I'm encouraging a hands-on approach.
0:01:11 > 0:01:14I think she's slightly more enthusiastic than you are.
0:01:14 > 0:01:16I think you've planned it all out for me already.
0:01:17 > 0:01:21Whilst in Bromley, Kent, I'm hoping for hands-off.
0:01:21 > 0:01:23- Please don't throw it away.- See.
0:01:23 > 0:01:25Don't put that in the skip.
0:01:27 > 0:01:31In Exeter, Devon, looks like someone is going to need a helping hand.
0:01:31 > 0:01:34- So you like a challenge? - Uh, love a challenge.
0:01:34 > 0:01:37- Which is just as well really. - Yeah, have you seen the place?- Yeah.
0:01:39 > 0:01:41All these properties have been sold at auction
0:01:41 > 0:01:44and we'll find out who bought them and what they paid for them
0:01:44 > 0:01:46when they went under the hammer.
0:01:46 > 0:01:48BANGS GAVEL All done.
0:01:50 > 0:01:53I'm in Scotland's capital, Edinburgh.
0:01:53 > 0:01:55A city centre with everything
0:01:55 > 0:01:58from its contrasting medieval old town
0:01:58 > 0:02:01with its narrow winding streets and stairwells,
0:02:01 > 0:02:04to the spacious and grand architecture
0:02:04 > 0:02:05of the Georgian new town.
0:02:05 > 0:02:08Granton forms part of the city's waterfront
0:02:08 > 0:02:10on the Firth of Forth,
0:02:10 > 0:02:14and this former industrial area is undergoing regeneration,
0:02:14 > 0:02:18which will hopefully mean good news for surrounding areas as well.
0:02:18 > 0:02:23Well, the property I'm here to see is in the West Pilton area.
0:02:23 > 0:02:26Now, many of the homes here were social housing
0:02:26 > 0:02:28built in the 1930s and 1950s,
0:02:28 > 0:02:32but, nowadays, many are in private ownership,
0:02:32 > 0:02:34and that's certainly the case for the one I'm here to see.
0:02:34 > 0:02:36A one-bedroom first-floor flat,
0:02:36 > 0:02:39had a guide price of £40,000 plus.
0:02:39 > 0:02:41Let's take a look.
0:02:43 > 0:02:46This estate has plenty of green space -
0:02:46 > 0:02:50terrific, given that the city centre is only two miles away,
0:02:50 > 0:02:52and there are good bus links.
0:02:52 > 0:02:56Well, whenever you're buying a flat, one of the things you want
0:02:56 > 0:02:58to consider even before you look at the flat itself
0:02:58 > 0:03:01is the communal areas.
0:03:01 > 0:03:04What are they like? How are they being, um, maintained?
0:03:04 > 0:03:06And in this instance...
0:03:08 > 0:03:11..it's not the best.
0:03:14 > 0:03:18So, my hope's not exactly stratospheric, er...
0:03:18 > 0:03:19But let's see.
0:03:19 > 0:03:22Reasonable size entrance hall there.
0:03:22 > 0:03:24Your bedroom is there.
0:03:24 > 0:03:27Separate bathroom there, which is quite nice.
0:03:27 > 0:03:29Then down this corridor, lots of storage,
0:03:29 > 0:03:33which you don't get in, hmm, every flat you visit.
0:03:33 > 0:03:35Into the main living room area.
0:03:35 > 0:03:37A reasonable amount of light coming in through the windows.
0:03:37 > 0:03:40It doesn't look to be in too bad condition.
0:03:40 > 0:03:42And there, the kitchen looking pretty good.
0:03:43 > 0:03:45What a surprise.
0:03:45 > 0:03:47It's a really nice flat!
0:03:47 > 0:03:50# Baby, what a big surprise
0:03:53 > 0:03:55# Right before my very eyes... #
0:03:55 > 0:03:59The inside certainly makes up for the entrance to this property.
0:03:59 > 0:04:03It's been well looked after and there's lots of space in here.
0:04:03 > 0:04:05But, unfortunately, this place is let down
0:04:05 > 0:04:07when we go outside again.
0:04:08 > 0:04:10Well, out the back here, and once again,
0:04:10 > 0:04:13this flat really is let down by the communal areas.
0:04:13 > 0:04:15Not only is it the stairway there,
0:04:15 > 0:04:18but this area here is like an amenity area,
0:04:18 > 0:04:20and it could be absolutely lovely,
0:04:20 > 0:04:23but, as you can see, it's in a bit of a state.
0:04:23 > 0:04:26Clean it up, though, you know, it'll make a big difference.
0:04:26 > 0:04:29One thing you can't change, though, on a positive side,
0:04:29 > 0:04:31is the flat's location.
0:04:31 > 0:04:34It's so close to Edinburgh city centre.
0:04:34 > 0:04:37Now, there are some people whose sole investment strategy
0:04:37 > 0:04:40is to invest in capital cities.
0:04:40 > 0:04:43And the capital city of Scotland, no different.
0:04:43 > 0:04:47You normally pay a big premium for properties in those places,
0:04:47 > 0:04:49and in this case, I think this flat...
0:04:51 > 0:04:53..it's a bit of a bargain.
0:04:53 > 0:04:57Remember, that guide price is £40,000.
0:04:57 > 0:05:00I'll repeat, it seems like a bit of a bargain.
0:05:00 > 0:05:01Too good to be true?
0:05:01 > 0:05:02We'll see.
0:05:02 > 0:05:05What does a local estate agent think of it?
0:05:05 > 0:05:09The positives in the flat are that it's bright and light.
0:05:09 > 0:05:11It's spacious, there's plenty of storage
0:05:11 > 0:05:13and it's got a good feel to it.
0:05:13 > 0:05:15It's a good, well-designed flat.
0:05:15 > 0:05:18Keeping that guide price of £40,000 in mind,
0:05:18 > 0:05:21what could this flat sell for after a refurbishment?
0:05:21 > 0:05:22I think, once renovated,
0:05:22 > 0:05:26on the sales market, this could achieve about £45,000.
0:05:26 > 0:05:29I reckon this feels like rental is the way to go,
0:05:29 > 0:05:31so what could it rent for?
0:05:31 > 0:05:34Once renovated, I think this property could achieve
0:05:34 > 0:05:37between £450 and £500 per calendar month.
0:05:37 > 0:05:41If you got it for anything like that £40,000,
0:05:41 > 0:05:43and spent, say, another, oh, I don't know,
0:05:43 > 0:05:46£5,000 with a basic refurbishment,
0:05:46 > 0:05:48that £500 per calendar month
0:05:48 > 0:05:52could mean a potential yield of nearly 14%.
0:05:52 > 0:05:55Definitely not to be dismissed.
0:05:55 > 0:05:58Well, after a relatively inauspicious start,
0:05:58 > 0:06:01this flat has really redeemed itself,
0:06:01 > 0:06:04and for that kind of guide price,
0:06:04 > 0:06:05I don't think you can go far wrong.
0:06:05 > 0:06:09Let's see who agreed when it went under the hammer.
0:06:09 > 0:06:11Ideal buy-to-let investment.
0:06:11 > 0:06:13A first-time purchase, excellent rental potential.
0:06:13 > 0:06:1535, then, start me?
0:06:15 > 0:06:19At £35,000, do I see a bid?
0:06:19 > 0:06:2130 then. Start me somewhere, I need a bid.
0:06:21 > 0:06:23Can't sell it without one.
0:06:23 > 0:06:2630 here. At 30, I'm bid now in ones.
0:06:26 > 0:06:2931 at the back. 32? 33...?
0:06:29 > 0:06:3234? 35?
0:06:32 > 0:06:3536? 37?
0:06:35 > 0:06:37Shake of the head at 37.
0:06:37 > 0:06:39With you at £36,000.
0:06:39 > 0:06:41With you at £36,000.
0:06:41 > 0:06:43First time...
0:06:43 > 0:06:44New bidder, 36 and a half.
0:06:44 > 0:06:4637?
0:06:46 > 0:06:4837, I've got. Half?
0:06:48 > 0:06:51Shake of the head. With you at £37,000. Are we done?
0:06:53 > 0:06:55At £37,000 then.
0:06:55 > 0:06:58First time, second time at 37.
0:06:58 > 0:07:00All out. Third and final time.
0:07:01 > 0:07:0337 and a quarter, I'll take it.
0:07:03 > 0:07:0537 and a half?
0:07:05 > 0:07:07750? Shake of the head.
0:07:07 > 0:07:10With you at £37,500.
0:07:10 > 0:07:12Are we done here? To sell, ladies and gentlemen.
0:07:12 > 0:07:16We're in the room, he's getting it. At £37,500.
0:07:16 > 0:07:19First and second time. All done, all out.
0:07:19 > 0:07:21Third and final time. Are you sure?
0:07:21 > 0:07:24BANGS GAVEL To you, sir. Well done.
0:07:24 > 0:07:28A bid of £37,500 secured the one-bedroom flat
0:07:28 > 0:07:31for Jay and girlfriend Sally.
0:07:31 > 0:07:36# I'm on my way to what I want from this world... #
0:07:36 > 0:07:40I met them back at West Pilton to find out their plans.
0:07:40 > 0:07:43- Sally, Jay, great to meet you both. - BOTH: Nice to meet you.
0:07:43 > 0:07:44Tell me why you wanted to buy the flat.
0:07:44 > 0:07:46Well, it's an investment, really.
0:07:46 > 0:07:49It's the potential to maybe increase the size of it as well,
0:07:49 > 0:07:51- or increase the bedrooms, potentially.- Resize? How?
0:07:51 > 0:07:53Not the size so much, but the number of bedrooms perhaps.
0:07:53 > 0:07:56We're having a wee look into that and seeing what we can get done.
0:07:56 > 0:07:58What was it about this particular place
0:07:58 > 0:08:00that made you think this is the one to go for?
0:08:00 > 0:08:02It's a great price, it's a reasonable location,
0:08:02 > 0:08:04it's quite close to the centre of town
0:08:04 > 0:08:06and I think the rental possibilities here
0:08:06 > 0:08:08- are really quite good as well, so... - Right...
0:08:08 > 0:08:10- Just ticked a lot of boxes.- Great.
0:08:10 > 0:08:14And rental potential is something Jay knows about
0:08:14 > 0:08:18as he has several other properties in his portfolio already.
0:08:18 > 0:08:21I reckon he's got himself a good buy here,
0:08:21 > 0:08:23and more good news,
0:08:23 > 0:08:26in Scotland, properties are, generally speaking, freehold,
0:08:26 > 0:08:29so no freeholder to seek permission from.
0:08:30 > 0:08:32So, tell me what you're going to do to it.
0:08:32 > 0:08:34Well, it depends whether we can get permissions
0:08:34 > 0:08:37to increase the number of rooms.
0:08:37 > 0:08:40If that's not allowed, then it's just a general kind of freshen up,
0:08:40 > 0:08:43but if it is allowed, then it will be a two-bedroom property
0:08:43 > 0:08:45and hopefully that will increase the value
0:08:45 > 0:08:47and increase the potential again soon.
0:08:47 > 0:08:50So, you talk about asking permission to increase the number of bedrooms.
0:08:50 > 0:08:51Who do you have to ask?
0:08:51 > 0:08:55Well, it's the building warrant, so I'd have to get that all put through,
0:08:55 > 0:08:57so I'd have to get an architect in to draw everything up.
0:08:57 > 0:09:00- Why's that?- Because the kitchen would be changing place
0:09:00 > 0:09:02and because the bathroom would be changing,
0:09:02 > 0:09:05- there has to be some building warrants to be passed.- Right, OK.
0:09:05 > 0:09:09So that's like building regulations rather than planning permission?
0:09:09 > 0:09:11- There wouldn't be any planning permission.- Yeah.
0:09:11 > 0:09:14In some cases, people like one big bedroom rather than two,
0:09:14 > 0:09:18but Jay isn't going to go ahead with the second bedroom
0:09:18 > 0:09:20until he's done some research
0:09:20 > 0:09:23on how that second room might add to the value.
0:09:23 > 0:09:25Jay has 12 years' experience,
0:09:25 > 0:09:27so this is easy-peasy for him.
0:09:27 > 0:09:29But Sally is new to it.
0:09:29 > 0:09:31This is not my background at all.
0:09:31 > 0:09:33My background is nursing, so...
0:09:33 > 0:09:36This is brand-new to me, I'm a complete novice.
0:09:36 > 0:09:39It's all Jay's thing really.
0:09:39 > 0:09:42- But I'm interested to see how it develops...- Yeah.- ..as well, so...
0:09:42 > 0:09:44Have you got a bit of an interest in property, though?
0:09:44 > 0:09:47I guess so, yeah. It's just really from talking with Jay about it
0:09:47 > 0:09:50- and sharing his kind of passion for it...- Right.- ..so...
0:09:50 > 0:09:52Are you going to get practically involved
0:09:52 > 0:09:54- with a paintbrush in hand, or...? - I might do.
0:09:54 > 0:09:55It just depends how the budget goes.
0:09:55 > 0:09:58But I try not to do that quite so much as I did in the past, it's...
0:09:58 > 0:10:01- Why?- Because I think other people are better at it than I am.
0:10:01 > 0:10:04But, on top of that, I just, I like to...
0:10:04 > 0:10:06- Well, you've got an apprentice here! - Exactly, I know.
0:10:06 > 0:10:09Well, perhaps we'll get the overalls on and see what we can get done.
0:10:09 > 0:10:12- Absolutely, yes. - You'll have some fun doing it.
0:10:12 > 0:10:14- It would be fun to do that... - A romantic bit of painting together.
0:10:14 > 0:10:18Well, exactly, and we're not too far from here ourselves either,
0:10:18 > 0:10:19so it's quite good to, you know,
0:10:19 > 0:10:23we could just come down and get stuck in if we need to, so...
0:10:23 > 0:10:26See. I think she's slightly more enthusiastic than you are.
0:10:26 > 0:10:29I think you've planned it all out for me already.
0:10:29 > 0:10:31Well, glad to be of assistance, Jay.
0:10:31 > 0:10:34What kind of budget does he intend spending on the flat?
0:10:34 > 0:10:37If it was to be, to keep it as a one-bedroom,
0:10:37 > 0:10:40probably about 10,000 with everything that would have to get done.
0:10:40 > 0:10:41If it was going to be increased,
0:10:41 > 0:10:45then maybe sort of another 8,000-10,000 on top of that.
0:10:45 > 0:10:46And what about timescales?
0:10:46 > 0:10:49Well, hopefully within 12 weeks,
0:10:49 > 0:10:51if it was going to be kept the way it was,
0:10:51 > 0:10:54and then, on top of that, if it was going to be increased,
0:10:54 > 0:10:57then it would just depend how long it took for everything
0:10:57 > 0:10:59to come through for us to be able to start.
0:10:59 > 0:11:01And then, maybe, 16 weeks or something
0:11:01 > 0:11:03- with the building work that would have to get done.- Right.
0:11:03 > 0:11:06- Good stuff. Well, congratulations. - Thank you very much.
0:11:06 > 0:11:08- Good luck with it. - Thank you very much.
0:11:08 > 0:11:10- I look forward to seeing how you get on.- Thank you very much.
0:11:10 > 0:11:13Well, it certainly seems that Sally is more enthusiastic
0:11:13 > 0:11:16about getting hands-on with the renovation than Jay is,
0:11:16 > 0:11:19but then he's probably done a few more than she has.
0:11:19 > 0:11:21It's a good flat, how will they improve it?
0:11:21 > 0:11:24You can find out later in the show.
0:11:26 > 0:11:32Bromley, near Penge, looks like a town with an identity crisis.
0:11:32 > 0:11:34The signs tell you it's in London,
0:11:34 > 0:11:36but officially, it's in Kent.
0:11:38 > 0:11:42I'm in the Grove Park area, one mile from Bromley centre.
0:11:42 > 0:11:44There's good commuter links to London
0:11:44 > 0:11:45and lots of local amenities.
0:11:47 > 0:11:51So far, I'm happy as this is a quiet, attractive street,
0:11:51 > 0:11:55and the train station is literally a ten-minute walk away.
0:11:55 > 0:11:56Now, the property is here.
0:11:56 > 0:12:02It's a three-bed mid-terrace and it had a guide price of £225,000.
0:12:02 > 0:12:04Now, I can already see that those windows,
0:12:04 > 0:12:06well, they need replacing.
0:12:06 > 0:12:09But it does look quite grand sitting perched up there
0:12:09 > 0:12:11on that little slope, doesn't it?
0:12:11 > 0:12:14Let's head inside and see what the property's really like.
0:12:17 > 0:12:19You see, this is one of those houses
0:12:19 > 0:12:23that I knew I was going to love once inside.
0:12:23 > 0:12:26'30s houses, they're just so sociable.
0:12:26 > 0:12:27This wonderful hallway here.
0:12:27 > 0:12:29You've got two good-sized rooms.
0:12:29 > 0:12:31But look at this.
0:12:31 > 0:12:34Wow, I haven't seen one of these old phones for years!
0:12:34 > 0:12:36Listen to this noise.
0:12:36 > 0:12:38DIAL SWOOSHES
0:12:38 > 0:12:40Hello, 7938...
0:12:40 > 0:12:42Anyway, let's move on, let's look at this kitchen.
0:12:42 > 0:12:45It's a bit small, quite disappointing,
0:12:45 > 0:12:47but look at these original doors.
0:12:47 > 0:12:49You've got a big larder there.
0:12:49 > 0:12:50I mean, it's too small,
0:12:50 > 0:12:53you need to think how you're going to modernise a space like this
0:12:53 > 0:12:55and, um, this old lean-to.
0:12:55 > 0:12:58Well, this has certainly got to go.
0:12:58 > 0:13:00Look at this place.
0:13:00 > 0:13:05Time has certainly stood still in this house.
0:13:05 > 0:13:07And every time I see things like this,
0:13:07 > 0:13:09I can't help thinking about the lives of the people
0:13:09 > 0:13:11who lived here before.
0:13:11 > 0:13:14Frozen in time for some 80 years.
0:13:14 > 0:13:20# Oh, thanks for the memories
0:13:22 > 0:13:25# And strictly entre-nous
0:13:25 > 0:13:29# Darling, how are you?
0:13:29 > 0:13:35# How are all those little dreams that never did come true?
0:13:35 > 0:13:37# Awfully glad I met you
0:13:37 > 0:13:41# Cheerio and toodle-oo
0:13:41 > 0:13:48# And thank you so much. #
0:13:57 > 0:13:59This house really is full of character,
0:13:59 > 0:14:01and there's so many features in here that I would keep.
0:14:01 > 0:14:05You've got the original Bakelites, these lovely little handles.
0:14:05 > 0:14:07There's lots going on that I just love,
0:14:07 > 0:14:09including this fireplace.
0:14:09 > 0:14:11Now, it might not be to everybody's taste,
0:14:11 > 0:14:12but I absolutely love it.
0:14:12 > 0:14:15Sort of Art Deco in its style.
0:14:15 > 0:14:16If you painted this,
0:14:16 > 0:14:20and put a wonderful great big mirror cut to size
0:14:20 > 0:14:22all the way on that back wall,
0:14:22 > 0:14:24the light would flood in, it would bounce off there.
0:14:24 > 0:14:27I'd even probably keep these old original tiles.
0:14:27 > 0:14:30I just think, things like this, you should keep, you should restore,
0:14:30 > 0:14:32and certainly not chuck in the skip.
0:14:33 > 0:14:36Yes, in fact, there are several authentic fireplaces here.
0:14:36 > 0:14:39Admittedly, some more appealing than others.
0:14:39 > 0:14:42Upstairs, at the front of the house, you'll find this one.
0:14:42 > 0:14:45Even if it's not to your taste,
0:14:45 > 0:14:48I would check with the reclamation yard before just tipping it
0:14:48 > 0:14:51as it might be worth, well, quite a few pennies.
0:14:58 > 0:15:01The second bedroom has a rather individual decor
0:15:01 > 0:15:03which may be, well, a little dark for some.
0:15:03 > 0:15:07The view over the back of the house is a little brighter
0:15:07 > 0:15:09and shared by the smallest of the three bedrooms,
0:15:09 > 0:15:11which is a good size.
0:15:11 > 0:15:13But the windows, along with the rest of the house,
0:15:13 > 0:15:17look like they need some attention, as does that back garden.
0:15:18 > 0:15:20Let's take a look and see what potential it holds.
0:15:22 > 0:15:25Fight my way through this piece of tarpaulin
0:15:25 > 0:15:27to have a good old look and see what's going on out here.
0:15:27 > 0:15:32Now, at the moment, I think that's more of a lean-over than a lean-to.
0:15:32 > 0:15:35And I think, if you could possibly replace it with
0:15:35 > 0:15:37a single-storey really nice extension,
0:15:37 > 0:15:40you could then bring the kitchen out.
0:15:40 > 0:15:42It would offer so much more space,
0:15:42 > 0:15:44it would add value to this property,
0:15:44 > 0:15:47and really give it the wow factor it needs.
0:15:47 > 0:15:49Talking of more space and adding value,
0:15:49 > 0:15:52at the far end of the garden, there's a single garage,
0:15:52 > 0:15:55which could offer plenty of storage space.
0:15:55 > 0:15:56And the bonus is?
0:15:56 > 0:15:59The garage fronts onto an access road,
0:15:59 > 0:16:02but it looks like some judicious pruning is in order here.
0:16:02 > 0:16:06If you would rather use that garage for storage than a car,
0:16:06 > 0:16:08there could be an option.
0:16:08 > 0:16:12Now, I mentioned the sloped front garden earlier.
0:16:12 > 0:16:16Well, how about using THIS as a driveway,
0:16:16 > 0:16:18and creating some off-street parking?
0:16:18 > 0:16:22There are restrictions all along this street,
0:16:22 > 0:16:24and you could never guarantee that
0:16:24 > 0:16:27you could just park your car right outside your home.
0:16:27 > 0:16:29Certainly not ideal if you arrived back with the kids,
0:16:29 > 0:16:32it's late at night, you might have loads of shopping.
0:16:32 > 0:16:33Hm, got to think about that.
0:16:33 > 0:16:35It's not quite as simple as just
0:16:35 > 0:16:39tearing down this front hedge and start pouring in the concrete,
0:16:39 > 0:16:41as you will need to apply for planning permission
0:16:41 > 0:16:44from the local council before you go ahead.
0:16:44 > 0:16:48However, the precedent has already been set along this street,
0:16:48 > 0:16:50and I think it would immediately enhance
0:16:50 > 0:16:53the appeal and the value of this property.
0:16:53 > 0:16:57Remember, if you undertake to do this,
0:16:57 > 0:16:59you have two insure that your materials
0:16:59 > 0:17:01are all compliant with planning regulations
0:17:01 > 0:17:04designed to protect the environment from flooding.
0:17:04 > 0:17:08Having a drive in front of the house may not be very pretty,
0:17:08 > 0:17:10but it is practical.
0:17:10 > 0:17:12In investment terms, it's probably worth doing,
0:17:12 > 0:17:15as it could add thousands to the value of the house.
0:17:15 > 0:17:17So, that's what I think.
0:17:17 > 0:17:20But what does the local estate agent think of this property
0:17:20 > 0:17:23with a guide price of 225,000?
0:17:26 > 0:17:29It's a great, well-proportioned 1930s terraced property
0:17:29 > 0:17:31with a huge amount of potential.
0:17:31 > 0:17:32If it was my property,
0:17:32 > 0:17:34I would extend out to the rear with a single-storey extension,
0:17:34 > 0:17:36and put parking at the front of the property,
0:17:36 > 0:17:39and then I would look to put it back on the resale market.
0:17:39 > 0:17:41Hmm, seems familiar. But what about the valuation?
0:17:41 > 0:17:45The auction guide price is 225,000.
0:17:45 > 0:17:47Once renovated, in the current layout,
0:17:47 > 0:17:51I would consider the property worth £1,250-£1,300 per calendar month.
0:17:51 > 0:17:53And for resale?
0:17:53 > 0:17:56Once renovated, I would value this property at £325,000
0:17:56 > 0:17:58if it's kept in the current layout.
0:17:58 > 0:18:00If you extend out to the rear with a kitchen-diner,
0:18:00 > 0:18:04I would say £340,000-£350,000.
0:18:04 > 0:18:08This property DOES need modernising, but it's a decent size,
0:18:08 > 0:18:11and there are plenty of ways you could increase its value further.
0:18:11 > 0:18:13And do you know what?
0:18:13 > 0:18:16It just has a really nice feel to it.
0:18:16 > 0:18:17I like this house.
0:18:17 > 0:18:20Let's see who else agreed and saw the potential
0:18:20 > 0:18:22when we went to auction.
0:18:22 > 0:18:25Lot 155. Start at 200, go up from there.
0:18:25 > 0:18:27Must be worth that all day long.
0:18:27 > 0:18:29200 with you.
0:18:29 > 0:18:31205...
0:18:31 > 0:18:33If you're here, bid for it, cos otherwise...
0:18:33 > 0:18:37At £200,000 it seems very low.
0:18:37 > 0:18:38200,000...
0:18:38 > 0:18:40205, 210...?
0:18:40 > 0:18:42After a sluggish start,
0:18:42 > 0:18:45the lot proves very popular with the bids,
0:18:45 > 0:18:49quickly reaching 268,000.
0:18:49 > 0:18:53268? 269? 270? 271?
0:18:53 > 0:18:55272? 273?
0:18:57 > 0:18:58Have a think. 272.
0:18:58 > 0:19:00273 elsewhere?
0:19:02 > 0:19:03273?
0:19:03 > 0:19:07If not, 272 sitting down.
0:19:07 > 0:19:08Have a go, 273?
0:19:08 > 0:19:10272. First time.
0:19:10 > 0:19:12Second time.
0:19:12 > 0:19:14Third and last time, if you're all done.
0:19:14 > 0:19:17BANGS GAVEL Sold 272.
0:19:18 > 0:19:21Sarah and her mum Lynnette look so pleased to have got
0:19:21 > 0:19:25this '30s house for 50,000 over the guide price
0:19:25 > 0:19:27at £272,000.
0:19:27 > 0:19:31Now, Sarah runs an online business from her home in Catford,
0:19:31 > 0:19:34while Lynnette is recently retired from running a care home business.
0:19:34 > 0:19:37I met them back at the house to find out more.
0:19:37 > 0:19:40Sarah and Lynette, lovely to meet you both today.
0:19:40 > 0:19:41- Congratulations. - BOTH: Thank you.
0:19:41 > 0:19:44Now, who has bought this house, and who is it for?
0:19:44 > 0:19:46- Mum's bought it. - I've given the money!
0:19:46 > 0:19:48- Your favourite.- My favourite is her! - It's for me.
0:19:48 > 0:19:51That sounds like a great deal to me. You've done well there.
0:19:51 > 0:19:55So you've bought it for yourself to live in or as an investment?
0:19:55 > 0:19:56- To live in.- To live in?
0:19:56 > 0:19:58- Was that always the plan?- No.
0:19:58 > 0:20:02Initially, we went to auction to look at an investment property.
0:20:02 > 0:20:05We both saw it, and thought, "Oh, that'll do nicely"
0:20:05 > 0:20:08so we...decided to...get it for me.
0:20:08 > 0:20:10We did a lot of research and we looked around,
0:20:10 > 0:20:13and I think we noted one across the road, actually,
0:20:13 > 0:20:15went for 315 last year.
0:20:15 > 0:20:16We looked everywhere in Catford.
0:20:16 > 0:20:19We couldn't find a house for 350.
0:20:19 > 0:20:22So, that's why we've moved out a bit. So, um...yeah.
0:20:22 > 0:20:24So, I think, I thought we got a bargain.
0:20:24 > 0:20:27But there wasn't as much competition for this particular house, I think.
0:20:27 > 0:20:29I think this is a fantastic house.
0:20:29 > 0:20:32What I love about it is the character and the features.
0:20:32 > 0:20:35Are you going to be true to form to its '30s character?
0:20:35 > 0:20:38Are you going to sort of try and retain as much as you can?
0:20:38 > 0:20:41Um, we've had a bit of a debate about the fireplaces.
0:20:41 > 0:20:43Got to go!
0:20:43 > 0:20:44OK, let's stop there.
0:20:44 > 0:20:47Yes, I agree this one's got to go, here.
0:20:47 > 0:20:50But what about that lovely one next door?
0:20:50 > 0:20:51- Got to go!- You don't like it?
0:20:51 > 0:20:53- I don't like it. - Now, do you like it?
0:20:53 > 0:20:5450-50, I'm not sure.
0:20:54 > 0:20:57- Please don't throw it away!- See.
0:20:57 > 0:20:59Don't put that in the skip.
0:20:59 > 0:21:04Sarah and Lynette will, however, be keeping the lovely original doors.
0:21:04 > 0:21:07They'll replace the old windows with double-glazed panes,
0:21:07 > 0:21:09but I'm pleased to report they'll be in keeping
0:21:09 > 0:21:11with the character of the house.
0:21:11 > 0:21:14Are you going to improve the size of the kitchen or are you going to extend?
0:21:14 > 0:21:17Thinking about it. Trying to maybe do a kitchen-diner possibly,
0:21:17 > 0:21:20and possibly extend, if the budget permits.
0:21:20 > 0:21:23You see, that is the cheaper option, just to knock these two walls
0:21:23 > 0:21:25into one and have a kitchen-diner this way.
0:21:25 > 0:21:28But, I mean, you've got that sort of lean-to out there
0:21:28 > 0:21:29that's doing nothing at all.
0:21:29 > 0:21:33No, possibly extend, possibly either extend or a conservatory.
0:21:33 > 0:21:35It depends on the budget, how much we can...squeeze.
0:21:35 > 0:21:38What's the budget? Have you given her all your money?
0:21:38 > 0:21:40- Have you got anything left over? - A little bit.
0:21:40 > 0:21:42How much have you got left over to spend on the house?
0:21:42 > 0:21:4430 grand, we've got to spend
0:21:44 > 0:21:47with a conservatory or with a small extension as well.
0:21:47 > 0:21:50- OK, so that's included in the £30,000?- Yeah.
0:21:50 > 0:21:53Because she's going to live here, we might go over slightly,
0:21:53 > 0:21:54but...try not to.
0:21:54 > 0:21:56I think it'll be great if you can get
0:21:56 > 0:21:58- a little extension out the back there...- Ideally.
0:21:58 > 0:22:01Now, what's going to happen to your house in Catford?
0:22:01 > 0:22:04Are you going to be selling that on now you've decided to live in this?
0:22:04 > 0:22:06I need to sell it to give mum back her money!
0:22:06 > 0:22:09- Right, so the plan didn't sort of go to plan, did it?- No.
0:22:09 > 0:22:13You wanted to buy this to do up to sell on and have as a buy-to-let,
0:22:13 > 0:22:14but now you're going to keep it.
0:22:14 > 0:22:16But you have to now sell your
0:22:16 > 0:22:18own home you're living in to give your mum back her money.
0:22:18 > 0:22:20- Yeah, basically, yeah.- Yeah.
0:22:20 > 0:22:23- How much of...- I've given her three months to do it in as well.
0:22:23 > 0:22:26My gosh, so she's really putting the time pressures on you.
0:22:26 > 0:22:29- I should do it.- She's got to do it, not should do it.
0:22:29 > 0:22:32- We will do it, yes. - Girls, good luck with this project.
0:22:32 > 0:22:34I'm really excited to see what it's going to look like at the end,
0:22:34 > 0:22:37and it's been fantastic talking to you.
0:22:37 > 0:22:38- Well done. - BOTH: Thank you.
0:22:38 > 0:22:39Lovely meeting you.
0:22:39 > 0:22:42Well, they say that home is where the heart is,
0:22:42 > 0:22:46and how fantastic that Sarah just fell in love with this property,
0:22:46 > 0:22:48and she can now call it her own.
0:22:48 > 0:22:51But don't forget, she needs to sell her home in Catford
0:22:51 > 0:22:53and pay her mum back.
0:22:53 > 0:22:56Join me later on in the programme and you can find out if she manages
0:22:56 > 0:22:58to complete the works within her budget
0:22:58 > 0:23:01and if she gets rid of my favourite fireplace or not.
0:23:01 > 0:23:04See what happens later in the programme.
0:23:05 > 0:23:09Still to come, in Devon, time is of the essence.
0:23:09 > 0:23:11The whole of the rear of the property...
0:23:13 > 0:23:15..it might only have seconds left.
0:23:16 > 0:23:20And in Bromley, Kent, a mum's work is never done.
0:23:20 > 0:23:23Just keep her under control, you know, the budget.
0:23:23 > 0:23:25"Oh, I must have... I want..."
0:23:30 > 0:23:33Back to Scotland's capital Edinburgh now.
0:23:33 > 0:23:36Earlier, I looked around a one-bedroom first-floor flat
0:23:36 > 0:23:40that had a guide price of £40,000 plus.
0:23:41 > 0:23:44The poor state of the outside and communal areas
0:23:44 > 0:23:46had my alarm bells ringing,
0:23:46 > 0:23:49but, as it happens, I shouldn't have worried.
0:23:50 > 0:23:55Lots of storage, which you don't get in, hm, every flat you visit.
0:23:55 > 0:23:57Into the main living room area.
0:23:57 > 0:23:59A reasonable amount of light coming in through the windows.
0:23:59 > 0:24:01It doesn't look to be in too bad condition.
0:24:01 > 0:24:04And there, the kitchen looking pretty good. You know what?
0:24:06 > 0:24:07What a surprise!
0:24:07 > 0:24:10It's a really nice flat.
0:24:10 > 0:24:1235 in...
0:24:12 > 0:24:14It was snapped up on auction day
0:24:14 > 0:24:17by property developer and local man Jay
0:24:17 > 0:24:21for what seemed a bargain at 37,500.
0:24:21 > 0:24:23To you, sir. Well done.
0:24:23 > 0:24:25Along with girlfriend Sally,
0:24:25 > 0:24:28he had some pretty big plans for this little one-bedroom flat.
0:24:30 > 0:24:34- So, why have you bought it then? - Well, it's an investment, really.
0:24:34 > 0:24:36It's the potential to maybe increase the size of it as well,
0:24:36 > 0:24:39- or increase the bedrooms potentially.- Increase the size? How?
0:24:39 > 0:24:42Well, not the size so much, but the number of bedrooms, perhaps.
0:24:42 > 0:24:44We're having a wee look into it and seeing what we can get done.
0:24:44 > 0:24:46Adding a bedroom was a great idea,
0:24:46 > 0:24:49and would certainly increase the appeal of the property.
0:24:49 > 0:24:53However, they would need to apply for a building warrant
0:24:53 > 0:24:55before work started.
0:24:57 > 0:24:59So, if they got that building warrant,
0:24:59 > 0:25:01they had a timescale of 16 weeks
0:25:01 > 0:25:04and a budget of 18,000-20,000.
0:25:04 > 0:25:07But if they don't get their plans approved,
0:25:07 > 0:25:10then it stays a one-bed with a basic refurbishment plan
0:25:10 > 0:25:14with a 12-week timescale and a £10,000 budget.
0:25:20 > 0:25:23It's now over a year since we last visited
0:25:23 > 0:25:26and I can't wait to get inside and see what they've done.
0:25:38 > 0:25:41Where once stood the bedroom next to the bathroom
0:25:41 > 0:25:45is now a smart and spacious kitchen-diner
0:25:45 > 0:25:46as Jay explains.
0:25:47 > 0:25:51Yes, well, initially, what we did, we took down this wall here,
0:25:51 > 0:25:53which is between the old bedroom and the bathroom.
0:25:53 > 0:25:56And the door to the bathroom was just about here,
0:25:56 > 0:25:59and the door to the bedroom was just about here.
0:25:59 > 0:26:00So, that all came out.
0:26:00 > 0:26:03We put a beam in and took the wall away
0:26:03 > 0:26:04and got everything finished off.
0:26:04 > 0:26:06And that's created a really lovely open space
0:26:06 > 0:26:09with a living room and a kitchen.
0:26:10 > 0:26:14The property's layout has been expertly reconfigured
0:26:14 > 0:26:17allowing for, yes, you guessed it, two bedrooms.
0:26:26 > 0:26:28So, this is the bedroom, the first bedroom.
0:26:28 > 0:26:31And this used to be the kitchen that was laid out here,
0:26:31 > 0:26:33and there used to be a wall that used to come along here
0:26:33 > 0:26:35with access through a door.
0:26:35 > 0:26:37We've moved that whole wall back this way
0:26:37 > 0:26:39to give us plenty of room for the bedroom,
0:26:39 > 0:26:42to make it a decent-sized double bedroom.
0:26:42 > 0:26:46Back here was the original doorway into the living room,
0:26:46 > 0:26:49and this is the second bedroom just round this way here.
0:26:50 > 0:26:52By working closely with an architect,
0:26:52 > 0:26:56Jay has been able to utilise every bit of floor space
0:26:56 > 0:26:59to make a spacious two-bed apartment.
0:26:59 > 0:27:04And one space-saving method was converting the old storage areas
0:27:04 > 0:27:07into a shower room, and doing away with the larger bathroom.
0:27:14 > 0:27:18However, why has all this taken over a year to complete?
0:27:18 > 0:27:20The biggest challenge was really getting
0:27:20 > 0:27:22the planning passed to the council.
0:27:22 > 0:27:25It took a wee while, there was a few changes we had to make.
0:27:25 > 0:27:27The shower room, we had to change the size of that a few times.
0:27:27 > 0:27:29So, that was probably what took the longest.
0:27:29 > 0:27:32But everything else went quite well, the builders were nice and quick
0:27:32 > 0:27:33with the structural work
0:27:33 > 0:27:36and the renovation went at a decent pace.
0:27:36 > 0:27:38And I think it's turned out quite nice.
0:27:38 > 0:27:41Ah-ha, waiting for permission can often involve
0:27:41 > 0:27:45lots of patience and nerves of steel.
0:27:45 > 0:27:47Now, one of the main difficulties
0:27:47 > 0:27:49I thought this property might suffer from
0:27:49 > 0:27:51was the state of the communal areas.
0:27:51 > 0:27:54What's happened there?
0:27:54 > 0:27:56So, when we first came to the property,
0:27:56 > 0:27:59there was a lot of mess in the back garden.
0:27:59 > 0:28:01Quite a lot of people were just dumping rubbish
0:28:01 > 0:28:02and things like that.
0:28:02 > 0:28:05So, there has been a very positive change since then, though.
0:28:05 > 0:28:08There's been a community clean-up day several weeks ago
0:28:08 > 0:28:11where lots of people from the community got together
0:28:11 > 0:28:13and tried to clean up the mess in the gardens,
0:28:13 > 0:28:16and get rid of some of the rubbish and things that had been dumped.
0:28:16 > 0:28:18So, I mean, that's made a huge difference.
0:28:18 > 0:28:21You can see just by looking outside that it does look a lot tidier
0:28:21 > 0:28:24and it'll just be about maintaining that, really.
0:28:24 > 0:28:26Sally talking like a pro there.
0:28:26 > 0:28:29But this was actually her first renovation experience.
0:28:29 > 0:28:32So, how did it go?
0:28:33 > 0:28:37I would say it's been good to sort of support Jay through it.
0:28:37 > 0:28:39There's been some times where, you know,
0:28:39 > 0:28:41things weren't going as smoothly as he'd hoped,
0:28:41 > 0:28:44so, from that point of view, yes, I've enjoyed it.
0:28:44 > 0:28:47But, certainly in terms of the actual renovations,
0:28:47 > 0:28:49I've had really no input in that at all.
0:28:49 > 0:28:52Erm, after this, now that it's finished,
0:28:52 > 0:28:55hoping to kind of be involved in furnishing and dressing
0:28:55 > 0:28:56and things like that.
0:28:56 > 0:28:59Getting it looking presentable for people coming in.
0:29:01 > 0:29:02Jay plans to rent the property,
0:29:02 > 0:29:05and a nicely furnished flat is always desirable.
0:29:07 > 0:29:10So, with the extra bedroom added as planned,
0:29:10 > 0:29:12how is the budget looking?
0:29:13 > 0:29:15I think we're pretty much OK.
0:29:15 > 0:29:19I think we probably spent about 19-20,000 with everything,
0:29:19 > 0:29:21including fees and all of the costs.
0:29:21 > 0:29:24I'll probably have to tot that up again,
0:29:24 > 0:29:25but something round about that price.
0:29:25 > 0:29:27So, it was within the range that I'd thought.
0:29:27 > 0:29:30I'm not massively happy, I'm not massively upset.
0:29:30 > 0:29:32I think we're pretty much there with the price
0:29:32 > 0:29:33and it was what we projected.
0:29:35 > 0:29:37So, it's taken a fraction over a year.
0:29:37 > 0:29:39And, including purchase price,
0:29:39 > 0:29:43Jay has invested around 57,500.
0:29:43 > 0:29:44Will it be profitable, then?
0:29:44 > 0:29:48We asked along two local estate agents for their opinions.
0:29:49 > 0:29:52On first entering the property, I was very impressed.
0:29:52 > 0:29:56It's light, airy, very fresh, and I really like the flooring.
0:29:56 > 0:29:59I think changing the flat from a one-bedroom to a two-bedroom
0:29:59 > 0:30:03is a good addition and a good use of space for the property.
0:30:04 > 0:30:08All sounding very positive, then. But what about valuations?
0:30:08 > 0:30:14I would market this property at offers around £70,000, £75,000
0:30:14 > 0:30:16and we'd hope to achieve somewhere in that region.
0:30:16 > 0:30:18I expect this property to achieve
0:30:18 > 0:30:20somewhere between £70,000 and £75,000.
0:30:20 > 0:30:23£70,000-£75,000 is exactly what we were looking for,
0:30:23 > 0:30:25so I think we're really happy
0:30:25 > 0:30:27with that as a final figure for the property.
0:30:27 > 0:30:30Well, if they were to achieve that top estimate,
0:30:30 > 0:30:35it would equate to a very impressive pre-tax profit of £17,500.
0:30:35 > 0:30:38However, with Jay still keen on renting,
0:30:38 > 0:30:39how will those figures stack up?
0:30:41 > 0:30:44As a rental opportunity, I would say this flat would probably fetch
0:30:44 > 0:30:48somewhere in the region of £650 per calendar month.
0:30:48 > 0:30:50If this property was to be put on the market for rental,
0:30:50 > 0:30:54I would expect it to achieve between £600 and £650 per calendar month.
0:30:54 > 0:30:57We'll certainly have a think about that and maybe have a look at
0:30:57 > 0:30:59remarketing it a bit higher than that, perhaps.
0:30:59 > 0:31:02Both of them are fantastic figures. We're happy with both of them.
0:31:02 > 0:31:05If they did get £650 per calendar month,
0:31:05 > 0:31:09that would mean a yield of a whopping 13.5%,
0:31:09 > 0:31:11which is hugely impressive
0:31:11 > 0:31:15and justifies the decision to turn this property into a two-bed.
0:31:15 > 0:31:19So, with this just the latest in a long line of renovations for Jay,
0:31:19 > 0:31:24but the first for Sally, can she see a future in it?
0:31:24 > 0:31:26I would like to think that I would have a bit more of a future
0:31:26 > 0:31:29within property, especially since it's something that
0:31:29 > 0:31:30Jay's so passionate about.
0:31:30 > 0:31:33It's given me a taster so we'll see what the future holds.
0:31:42 > 0:31:48I am in the beautiful South West - the city of Exeter, to be precise -
0:31:48 > 0:31:52with, amongst other things, its magnificent cathedral.
0:31:52 > 0:31:56Let's hope the property I'm here to see is just as impressive.
0:31:56 > 0:32:00This lovely Roman-walled city is a delight to spend time in
0:32:00 > 0:32:04with its eclectic mix of the ancient and the modern.
0:32:04 > 0:32:09Little wonder, then, that this city is a real draw for tourists,
0:32:09 > 0:32:11commuters and students.
0:32:11 > 0:32:15Well, just a couple of minutes' drive from Exeter city centre
0:32:15 > 0:32:19on this busy main road is the property I'm here to see.
0:32:19 > 0:32:23It's a five-bedroom Victorian mid-terrace -
0:32:23 > 0:32:26a really substantial property.
0:32:26 > 0:32:31But the guide price was just £80,000-£100,000.
0:32:31 > 0:32:33Something is not stacking up.
0:32:34 > 0:32:37'Perhaps the junk out here is a clue.'
0:32:40 > 0:32:43Hmm, bit of a shabby front door. Never a good start.
0:32:43 > 0:32:45But let's focus on the layout. Straight through here.
0:32:45 > 0:32:47Nice to have this little entry area
0:32:47 > 0:32:50and possibly these could be stripped back,
0:32:50 > 0:32:52so some original features.
0:32:52 > 0:32:54Pretty standard layout for this kind of property.
0:32:54 > 0:32:57A front living room there with a bay window, which is good.
0:32:57 > 0:33:01Stairs up to your bedrooms. A rear living area there.
0:33:03 > 0:33:04And then...
0:33:05 > 0:33:07..oh, dear.
0:33:09 > 0:33:12I think I'm going to need this.
0:33:14 > 0:33:17Head through to that part of the property
0:33:17 > 0:33:20and it starts to get really seriously bad.
0:33:20 > 0:33:23I don't know what you can see from this point, but to be fair,
0:33:23 > 0:33:27I'm not even confident enough to go through there.
0:33:27 > 0:33:29I think that looks extremely dicey.
0:33:29 > 0:33:32What I'm looking at is bits of wood holding up the ceiling.
0:33:32 > 0:33:36You can see that the joists from the upstairs rooms
0:33:36 > 0:33:38are not actually going into the wall there.
0:33:38 > 0:33:40Just something tells me that's bad.
0:33:40 > 0:33:42Now, this is a really important point.
0:33:42 > 0:33:45If you are looking round auction properties before the auction,
0:33:45 > 0:33:48some of them will be in a really bad state.
0:33:48 > 0:33:51Now, it should be made clear to you that that is the case,
0:33:51 > 0:33:54but to be on the safe side, you should always carry a hard hat
0:33:54 > 0:33:58and other protective gear, such as really good shoes with you
0:33:58 > 0:34:00when you're going to look round properties
0:34:00 > 0:34:02which could be anywhere near kind of dangerous.
0:34:02 > 0:34:04Cos you know what?
0:34:04 > 0:34:06You do not want to take any risks when it comes to safety.
0:34:06 > 0:34:10# But there's nothing wrong with a hard hat and a hammer
0:34:10 > 0:34:13# God bless the working man. #
0:34:13 > 0:34:15We'll keep a safe distance in this one,
0:34:15 > 0:34:19as it looks like the load-bearing walls at the back of the property,
0:34:19 > 0:34:24where there is a third living space, are unsound.
0:34:24 > 0:34:26The bathroom is at the very back of the house
0:34:26 > 0:34:28and you can get a peek at the kitchen
0:34:28 > 0:34:31through the serving hatch from the second living room.
0:34:33 > 0:34:35And from the outside of the property,
0:34:35 > 0:34:38you can get a glimpse of the challenges ahead.
0:34:39 > 0:34:42"Dare I travel upstairs?" I ask myself...
0:34:42 > 0:34:44HE EXHALES
0:34:44 > 0:34:47Wow. I didn't think it could get much worse...
0:34:48 > 0:34:50..but it obviously can.
0:34:50 > 0:34:51If you look in here...
0:34:51 > 0:34:53Oh, my goodness me.
0:34:53 > 0:34:55There's a massive gap in between the bricks
0:34:55 > 0:34:58at the rear part of the house and the front part of the house.
0:34:58 > 0:35:02It's almost like the whole of the rear of the property...
0:35:03 > 0:35:04..well...
0:35:06 > 0:35:07..it might only have seconds left.
0:35:07 > 0:35:10No, joking apart, that is a serious problem.
0:35:10 > 0:35:12Not only is it dangerous to actually see this,
0:35:12 > 0:35:14but somebody, when they take this place on...
0:35:16 > 0:35:19..has got a lot of work to do to put that right.
0:35:19 > 0:35:21HE LAUGHS NERVOUSLY
0:35:21 > 0:35:23According to the drawings,
0:35:23 > 0:35:28there is a good-sized bedroom at the back here in the danger zone.
0:35:28 > 0:35:32There are another three bedrooms, which, thankfully, look safe.
0:35:33 > 0:35:37The auction catalogue does say there are five bedrooms
0:35:37 > 0:35:40and I reckon one of the reception rooms downstairs
0:35:40 > 0:35:42might have been used as such.
0:35:42 > 0:35:45It would appear this house was once upon a time
0:35:45 > 0:35:49rented out on a room-by-room basis.
0:35:49 > 0:35:54'Time to go to the top floor and see what I can safely check out there.'
0:35:56 > 0:36:01Well, apart from the incredibly dangerous stairs to get up here,
0:36:01 > 0:36:02when you actually arrive up here,
0:36:02 > 0:36:04you notice there's another small problem.
0:36:06 > 0:36:07Just as well I wore the hat.
0:36:07 > 0:36:10There are obviously rules and regulations
0:36:10 > 0:36:11when it comes to attic rooms.
0:36:11 > 0:36:13The steepness of the stairs, for a start.
0:36:13 > 0:36:15That dreadful situation at the bottom,
0:36:15 > 0:36:16where if you fell down those stairs,
0:36:16 > 0:36:19you'd carry on down the main flight of stairs as well.
0:36:19 > 0:36:23And then there needs to be a certain amount - a percentage -
0:36:23 > 0:36:28of the room which has roof height higher than an average person.
0:36:28 > 0:36:30This clearly has not been done
0:36:30 > 0:36:33within building regulations approval.
0:36:33 > 0:36:35At least you don't feel like this bit of the house
0:36:35 > 0:36:37is going to fall down any minute.
0:36:37 > 0:36:40And joy of joys, at least there is an en suite.
0:36:40 > 0:36:43Ha! I wish. It really is in a terrible state.
0:36:44 > 0:36:48I believe planning was granted to demolish the rear of this house
0:36:48 > 0:36:50because of subsidence.
0:36:50 > 0:36:54So, decision one - knock it down or rebuild it?
0:36:56 > 0:36:59To answer that, my first investment
0:36:59 > 0:37:02would be in a full structural survey.
0:37:02 > 0:37:04This lot is scary on many levels.
0:37:04 > 0:37:08It's hard hat time for the agent who sold it. What can he tell us?
0:37:08 > 0:37:12Is there hope beyond the serious structural issues here?
0:37:12 > 0:37:14Once the property has addressed the structural issues
0:37:14 > 0:37:16and it's been refurbished,
0:37:16 > 0:37:18you could either run this as a house with multiple occupancy,
0:37:18 > 0:37:21which will mean that you can do room-by-room letting for students
0:37:21 > 0:37:24or for your assured shorthold tenancies.
0:37:24 > 0:37:27The other, of course, is just keeping it as a large family home.
0:37:27 > 0:37:30Assuming you went for that single-house option,
0:37:30 > 0:37:33what could this lot, guided at £80,000-£100,000,
0:37:33 > 0:37:35be worth on the open market?
0:37:36 > 0:37:39Once this property is refurbished to a reasonable standard
0:37:39 > 0:37:40with the bathroom moved to the first floor
0:37:40 > 0:37:43creating a three-bedroom home, you could put it on the market
0:37:43 > 0:37:45for somewhere in the region of £180,000-£185,000.
0:37:45 > 0:37:47If they actually convert the attic room,
0:37:47 > 0:37:49that may move the price upwards slightly,
0:37:49 > 0:37:51but it'll certainly make it more saleable.
0:37:51 > 0:37:54The agent thinks, as a house of that size,
0:37:54 > 0:37:58it could rent for £750-£800 per calendar month.
0:37:58 > 0:38:04But a house with five bedrooms does offer another interesting option.
0:38:04 > 0:38:07If the property was converted into a house with multiple occupancy,
0:38:07 > 0:38:10then I would expect to achieve £80 per calendar week per room
0:38:10 > 0:38:11and of course, there's five rooms
0:38:11 > 0:38:15so, you know, that's going to be £1,600 per calendar month.
0:38:15 > 0:38:18Well, it's a very attractive guide price
0:38:18 > 0:38:24for a substantial house so well located close to Exeter.
0:38:24 > 0:38:27However, I hope to goodness
0:38:27 > 0:38:31that whoever bought it looked at it beforehand
0:38:31 > 0:38:36because now you'll know why the guide price was so low.
0:38:36 > 0:38:38Let's go to the auction.
0:38:38 > 0:38:40Lot 124. So, we're down to Exeter. Two-storey.
0:38:40 > 0:38:43It's got five beds. It's four on the first floor.
0:38:43 > 0:38:45You've got another bedroom on the ground floor.
0:38:45 > 0:38:48Who's going to kick us off, then? We've had lots of interest.
0:38:48 > 0:38:50Won't go any lower than 80. Two people.
0:38:50 > 0:38:52I'll take the left-hand person. 80. We're away.
0:38:52 > 0:38:55I saw the gentleman there. 82? I'll take 84, sir.
0:38:55 > 0:38:5784, he goes. 84.
0:38:57 > 0:39:00At 84. 86.
0:39:00 > 0:39:03Sat down. 88, he goes. At 88.
0:39:03 > 0:39:0789. You're in, sir. Back right. New face at 89,000.
0:39:07 > 0:39:1090 on the telephone. You saw it.
0:39:10 > 0:39:12On the telephone, we have a bid of 90. 91, he goes.
0:39:12 > 0:39:16The bidding started slowly, but then things began to hot up
0:39:16 > 0:39:19between a bidder in the room and a bidder on the phone.
0:39:19 > 0:39:23We rejoin the action at £124,000.
0:39:23 > 0:39:26124. That telephone bidder has it. At 124, then.
0:39:26 > 0:39:29You're out at the back left at the moment?
0:39:29 > 0:39:31124 on the telephone for the first time.
0:39:31 > 0:39:34You're out, sir? Back right? 124. First, second...
0:39:34 > 0:39:36Ooh!
0:39:37 > 0:39:39She's thinking, "What a rotter!"
0:39:39 > 0:39:42But, yeah, 124. Straight back at you. 126.
0:39:42 > 0:39:44Shake of the head, look at the floor - not a good sign.
0:39:44 > 0:39:48126, you're in. On the telephone has it at 126,000.
0:39:48 > 0:39:51For the first time at 126,000.
0:39:51 > 0:39:54For the second - £126,000.
0:39:54 > 0:39:57Third and final time, selling at £126,000.
0:39:57 > 0:39:59GAVEL BANGS Congratulations.
0:39:59 > 0:40:02That successful bidder on the other end of the phone
0:40:02 > 0:40:05paying £126,000 was Dave.
0:40:05 > 0:40:09He's a builder and lives with his wife Zelda in Devon.
0:40:09 > 0:40:12I met up with him back in the safety of the front living room
0:40:12 > 0:40:15to find out his plans for this property.
0:40:15 > 0:40:16Dave, good to meet you.
0:40:16 > 0:40:18- Martin, yeah.- Congratulations.
0:40:18 > 0:40:19Thanks very much.
0:40:19 > 0:40:21- You were the mystery telephone bidder.- I was, yes.
0:40:21 > 0:40:24- How come?- I was, at the time, working on my roof.
0:40:24 > 0:40:27Too busy to go to the auction cos you were roofing your house?
0:40:27 > 0:40:28That's right, yeah.
0:40:28 > 0:40:31I presume you got off the roof while you were making the phone call?
0:40:31 > 0:40:33- I did, yeah, yeah. - You were on a roof.
0:40:33 > 0:40:38Does that mean A, you're a roofer or B, an enthusiastic DIYer?
0:40:38 > 0:40:40- I am a sort of self builder.- Oh.
0:40:40 > 0:40:43Been building on and off for sort of 15, 20 years.
0:40:43 > 0:40:46We purchased an auction property last year,
0:40:46 > 0:40:51which is a sort of total build - total rebuild, plus extension.
0:40:51 > 0:40:53- So, you like a challenge? - Love a challenge.
0:40:53 > 0:40:55- Which is just as well, really.- Yeah.
0:40:55 > 0:40:58- Have you seen the place? - Yeah. Yeah, it needs a bit of work.
0:40:58 > 0:41:01- I have plenty of experience of Victorian terraces.- Right.
0:41:01 > 0:41:03So, the structural issues don't worry you, then?
0:41:03 > 0:41:05Not adversely, no.
0:41:05 > 0:41:09Um, it's amazing what you can do with a bit of brick and mortar
0:41:09 > 0:41:13and steel and epoxy resin and timber. Yeah.
0:41:13 > 0:41:16Blimey! Dave makes it sound easy.
0:41:22 > 0:41:25Dave's plan is to begin building a portfolio
0:41:25 > 0:41:28by rebuilding this house into an HMO.
0:41:28 > 0:41:30So, where to start?
0:41:30 > 0:41:36I think I've got to repair what has been done to it, first and foremost.
0:41:36 > 0:41:40Um, reinstate the structural fabric of it
0:41:40 > 0:41:43and then try and make a bit more of an open-plan
0:41:43 > 0:41:47living/kitchen/dining area at the back there.
0:41:47 > 0:41:50Try and gain retrospective building regs for the attic
0:41:50 > 0:41:52and maybe just create
0:41:52 > 0:41:56a couple of slightly bigger bedrooms upstairs with a shower room,
0:41:56 > 0:41:59as there's already a downstairs bathroom.
0:41:59 > 0:42:02Until Dave receives the structural surveyor's report,
0:42:02 > 0:42:06he won't know the potential cost of repairing the damage here.
0:42:06 > 0:42:09He set an initial budget of £30,000
0:42:09 > 0:42:12and hopes to have the work completed in six months
0:42:12 > 0:42:15using professional tradesmen when needed
0:42:15 > 0:42:18and doing a lot of the work himself.
0:42:18 > 0:42:20Been sort of doing this for about a year now.
0:42:20 > 0:42:23- Prior to that, I was a landscape architect.- Oh, wow.
0:42:23 > 0:42:28And for sort of four, five years, got chartered and qualified
0:42:28 > 0:42:31- and found that I wanted to get back into building again.- Good.
0:42:31 > 0:42:34- Well, listen, congratulations. - Thanks very much.- Good luck with it.
0:42:34 > 0:42:37- Yeah.- Look forward to seeing how you get on.- Yeah, cheers, Martin.
0:42:39 > 0:42:41Well, there you go.
0:42:41 > 0:42:45Dave doesn't seem to be too fazed by the challenges ahead,
0:42:45 > 0:42:48but I do wonder - are we in the same house?
0:42:48 > 0:42:50HE LAUGHS
0:42:50 > 0:42:51I think he might have underestimated
0:42:51 > 0:42:55quite how much effort that is going to take to put right.
0:42:55 > 0:42:57You can find out how he gets on...
0:42:58 > 0:42:59..later in the show.
0:43:02 > 0:43:05Well, that's one property done and dusted, Lucy.
0:43:05 > 0:43:07- But what about the other two?- Yes.
0:43:07 > 0:43:11Did they get it done on time and for the right money? Let's find out.
0:43:14 > 0:43:18# Remember the old days? #
0:43:20 > 0:43:23It's time to head back to Bromley in Kent,
0:43:23 > 0:43:26where earlier, we met Sarah and her mum Lynette,
0:43:26 > 0:43:29who had purchased this attractive, 1930s,
0:43:29 > 0:43:33three-bed terrace house for £272,000.
0:43:33 > 0:43:38Once renovated, it was going to become Sarah's new home.
0:43:39 > 0:43:41'I love this architectural period
0:43:41 > 0:43:45'and this one had tons of interesting, original features.
0:43:45 > 0:43:47'Some needed to go...
0:43:49 > 0:43:52'..and some, I really wanted to stay.'
0:43:52 > 0:43:54I just think things like this, you should keep,
0:43:54 > 0:43:58you should restore and certainly not chuck in the skip.
0:43:59 > 0:44:00Oh, yes!
0:44:00 > 0:44:02I fell in love with that fireplace,
0:44:02 > 0:44:05so I was hoping Sarah and Lynette would carry out
0:44:05 > 0:44:06a sympathetic renovation.
0:44:08 > 0:44:10Please don't throw it away!
0:44:10 > 0:44:11- See?- Don't put that in the skip.
0:44:14 > 0:44:18Lynette, with so many years of business acumen behind her,
0:44:18 > 0:44:19was going to act as adviser,
0:44:19 > 0:44:23but more importantly, financier for this project.
0:44:24 > 0:44:28- Who has bought this house and who is it for?- Who's bought it?
0:44:28 > 0:44:31- Mum's bought it.- I've given the money.- You've paid for it?
0:44:31 > 0:44:32- I've paid for it.- It's for me.
0:44:32 > 0:44:36That sounds like a great deal to me! You've done well there.
0:44:36 > 0:44:40# All you can do is step back in time... #
0:44:40 > 0:44:44But that finance deal, along with the renovation budget of £30,000,
0:44:44 > 0:44:46wasn't a long-term loan.
0:44:46 > 0:44:48Mum was looking for her money back tout suite.
0:44:48 > 0:44:51So, did Sarah keep to her side of the deal
0:44:51 > 0:44:54and has it been payback time for mum Lynette?
0:44:58 > 0:45:00Has the three-month deadline been met?
0:45:00 > 0:45:04Well, nine months later, we return to this '30s house
0:45:04 > 0:45:07to find out if Sarah has a home.
0:45:16 > 0:45:18Well, there's no doubt about it,
0:45:18 > 0:45:22it is nearly there with a fantastic modern kitchen.
0:45:22 > 0:45:26And look at this. Lean-to, be gone!
0:45:26 > 0:45:28Hello, kitchen extension!
0:45:28 > 0:45:31Wow. The ground floor has been opened up
0:45:31 > 0:45:34with the removal of the kitchen wall into the dining room
0:45:34 > 0:45:37and together with that new extension,
0:45:37 > 0:45:41has created a fantastic, open-plan space.
0:45:41 > 0:45:44We blocked up the kitchen doorway
0:45:44 > 0:45:47and took away this wall,
0:45:47 > 0:45:51so we've had a through kitchen/dining room.
0:45:51 > 0:45:55We've also added a nice sun lounge, which is really quite lovely.
0:45:55 > 0:45:59When the sun is shining, it really lightens the whole area.
0:45:59 > 0:46:03In terms of the kitchen, I've done the tiling. Wow!
0:46:03 > 0:46:05Sarah chose the colours, so it looks really nice
0:46:05 > 0:46:08and we've got the quarry tiles, which are the original.
0:46:08 > 0:46:10We're hoping to keep those
0:46:10 > 0:46:13if we can clean them up and get some spare ones.
0:46:13 > 0:46:15We've got quite a bit of work to do in here still.
0:46:15 > 0:46:18We've got to do the flooring, all the skirting boards
0:46:18 > 0:46:20and then the last-minute touch-ups.
0:46:20 > 0:46:22So, we're quite looking forward to getting it done
0:46:22 > 0:46:24and getting Sarah in.
0:46:25 > 0:46:27The windows were in a bad state
0:46:27 > 0:46:30and have been replaced with sympathetic double glazing.
0:46:31 > 0:46:34And what about that Deco fireplace I adored?
0:46:34 > 0:46:37Well, I'm very sad to report it's gone,
0:46:37 > 0:46:42but it has been replaced by a rather nice traditional fireplace.
0:46:42 > 0:46:44We ummed and ahhed about whether to try and keep the fireplace,
0:46:44 > 0:46:47paint the fireplace, change parts of the fireplace.
0:46:47 > 0:46:50In the end, we decided on a new fireplace,
0:46:50 > 0:46:51so we went for a new one.
0:46:51 > 0:46:54- In the front room. - In the front room, yeah.
0:46:59 > 0:47:03Upstairs, the three bedrooms have been completely redecorated
0:47:03 > 0:47:04and carpeted.
0:47:04 > 0:47:07Nothing too fancy, just clean and simple.
0:47:09 > 0:47:13A new bathroom suite completes the upstairs transformation.
0:47:23 > 0:47:25In addition to the double glazing,
0:47:25 > 0:47:27the house has been completely rewired
0:47:27 > 0:47:30and a new central heating system installed.
0:47:30 > 0:47:32But it hasn't all been plain sailing.
0:47:32 > 0:47:38The original timescale of three months almost trebled to nine!
0:47:39 > 0:47:41The surveyor, the architect, he was quite quick,
0:47:41 > 0:47:42but we had toed and froed
0:47:42 > 0:47:45- between him and the council a bit, didn't we?- Yeah.
0:47:45 > 0:47:47The council then had to come and check the work was done
0:47:47 > 0:47:50when the chimneybreast and the wall was taken down.
0:47:50 > 0:47:52So, that held us up a bit.
0:47:52 > 0:47:55But mainly, it was the builders and waiting for them to turn up
0:47:55 > 0:47:57- when they said they would. - SHE LAUGHS
0:47:57 > 0:47:59And doing what they said they were going to do.
0:47:59 > 0:48:01Yeah, so, that took a long time.
0:48:01 > 0:48:04Different sets of builders as well, wasn't it?
0:48:04 > 0:48:06- Four sets of builders.- Yeah.
0:48:06 > 0:48:08It's not just time they've gone over.
0:48:08 > 0:48:10The budget has climbed to £50,000
0:48:10 > 0:48:13because of having to replace rotten floorboards
0:48:13 > 0:48:16and that sunroom cost more than they intended.
0:48:18 > 0:48:20This is going to be Sarah's new home,
0:48:20 > 0:48:21so what do the agents make of it?
0:48:21 > 0:48:25First, the estate agent who saw it originally.
0:48:25 > 0:48:28They've made some fantastic changes to the property
0:48:28 > 0:48:30and it's an ideal family home.
0:48:30 > 0:48:32I particularly like the new kitchen
0:48:32 > 0:48:35and sun lounge at the back of the house.
0:48:35 > 0:48:39That gives the house a very spacious feel to it.
0:48:40 > 0:48:42There's no doubt about it, it looks terrific,
0:48:42 > 0:48:47but Sarah has gone over her budget and her total spend is now £322,000.
0:48:47 > 0:48:52With that in mind, what could the house fetch on the open market?
0:48:52 > 0:48:56I would suggest marketing the property at £370,000.
0:48:56 > 0:48:59Once finished, I would suggest putting the property onto the market
0:48:59 > 0:49:04at an asking price in the region of £360,000.
0:49:04 > 0:49:07- Sounds about right, yeah. - Yeah, that's about what we thought.
0:49:07 > 0:49:10- I said about £370,000-£380,000. - I thought £350,000-£370,000.
0:49:10 > 0:49:14- Yeah, so, yeah, that's good. - Yeah, about right.
0:49:14 > 0:49:21That top valuation of £370,000 would mean a pre-tax profit of £48,000.
0:49:21 > 0:49:24Very good indeed and to top it all,
0:49:24 > 0:49:27Lynette was paid back a week after filming.
0:49:27 > 0:49:31So, does the Bank of Mum have some cautionary advice?
0:49:32 > 0:49:35Just keep her under control, you know, the budget.
0:49:35 > 0:49:38"Oh, I must have! I want!"
0:49:38 > 0:49:42Fireplaces that cost a fortune. "No, remember the budget!"
0:49:42 > 0:49:45Just got to keep them in check, that's all.
0:49:52 > 0:49:55We return to the South West now
0:49:55 > 0:49:57and the lovely city of Exeter, where earlier,
0:49:57 > 0:50:01I looked around this five-bedroom, Victorian mid-terrace property
0:50:01 > 0:50:04that had a suspiciously low guide price
0:50:04 > 0:50:07of just £80,000-£100,000.
0:50:07 > 0:50:11And unfortunately, once I stepped inside,
0:50:11 > 0:50:12I found out why.
0:50:16 > 0:50:20Head through to that part of the property
0:50:20 > 0:50:22and it starts to get really seriously bad.
0:50:22 > 0:50:25I don't know what you can see from this point.
0:50:25 > 0:50:28What I'm looking at is bits of wood holding up the ceiling.
0:50:28 > 0:50:31You can see that the joists from the upstairs rooms
0:50:31 > 0:50:34are not actually going into the wall there.
0:50:34 > 0:50:37And it didn't get much better upstairs,
0:50:37 > 0:50:40where more very worrying signs presented themselves.
0:50:40 > 0:50:43There's a massive gap in between the bricks
0:50:43 > 0:50:46at the rear part of the house and the front part of the house.
0:50:46 > 0:50:49It's almost like the whole of the rear of the property...
0:50:50 > 0:50:52..well...
0:50:53 > 0:50:55..it might only have seconds left.
0:50:56 > 0:50:59To say the least, the house was looking structurally unsound
0:50:59 > 0:51:01and to top it off, literally,
0:51:01 > 0:51:05a converted attic space with dubious stairs and no headroom,
0:51:05 > 0:51:08which was clearly done outside of building regulations
0:51:08 > 0:51:12and would have to be redone if you wanted to keep it.
0:51:16 > 0:51:22Step up, Devon-based builder Dave, who paid £126,000 on auction day
0:51:22 > 0:51:24and despite the state of the property,
0:51:24 > 0:51:26he wasn't sounding too worried at all.
0:51:31 > 0:51:33So, the structural issues don't worry you, then?
0:51:33 > 0:51:35Not adversely, no.
0:51:35 > 0:51:38Um, it's amazing what you can do with a bit of brick and mortar
0:51:38 > 0:51:42and steel and epoxy resin and timber. Yeah.
0:51:42 > 0:51:46He made it sound so easy and with that can-do attitude,
0:51:46 > 0:51:51he planned to create a House of Multiple Occupancy or an HMO
0:51:51 > 0:51:54and rent out the rooms individually.
0:51:54 > 0:51:59And to do that, he'd given himself six months and a £30,000 budget.
0:52:03 > 0:52:0826 months later, Dave is still working on the property,
0:52:08 > 0:52:10but what a difference.
0:52:18 > 0:52:22Dave has turned his plans, and this building, around.
0:52:22 > 0:52:25Instead of an HMO, he has two flats.
0:52:26 > 0:52:29The ground floor one is a one-bedroom flat
0:52:29 > 0:52:31with a lovely bay-fronted bedroom...
0:52:35 > 0:52:38..while the other original living spaces on the ground floor
0:52:38 > 0:52:43now flow well from the living room to dining space to kitchen...
0:52:46 > 0:52:49..with the bathroom still at the back of the property.
0:52:51 > 0:52:53I think he's used the space really well,
0:52:53 > 0:52:55but it took a lot of work to get here.
0:52:58 > 0:53:03Um, well, this is the area of major renovation.
0:53:03 > 0:53:08The existing opening into the kitchen,
0:53:08 > 0:53:11over there, was about this wide.
0:53:11 > 0:53:13All that was supporting the first floor
0:53:13 > 0:53:16was a couple of lengths of timber.
0:53:16 > 0:53:18So, all that came out.
0:53:18 > 0:53:22The first floor was replaced and we've rebuilt
0:53:22 > 0:53:26from the new underpinning all the way up to the roof.
0:53:26 > 0:53:30In fact, Dave has worked closely with Building Control
0:53:30 > 0:53:35to get this property safe, which has meant underpinning work.
0:53:35 > 0:53:39He had to dig down six feet to find firm ground for the foundations.
0:53:40 > 0:53:44The upstairs flat is no longer a danger zone.
0:53:44 > 0:53:47It's been transformed and is now really spacious.
0:53:47 > 0:53:50Although this has been planned as a living room,
0:53:50 > 0:53:52it's a pretty flexible space...
0:53:53 > 0:53:57..while the two original front bedrooms have become
0:53:57 > 0:54:01a lovely, light and bright open-plan kitchen and dining space.
0:54:05 > 0:54:08And what was previously a third front bedroom
0:54:08 > 0:54:11has become a contemporary-style bathroom.
0:54:12 > 0:54:15So, what's now at the top of these stairs,
0:54:15 > 0:54:17which have been turned from terrifying to terrific?
0:54:17 > 0:54:19Well, now they lead to...
0:54:21 > 0:54:23..a great-sized, airy bedroom.
0:54:27 > 0:54:29Dave has done a mountain of work,
0:54:29 > 0:54:32but why did he decide to go for two flats
0:54:32 > 0:54:34instead of his original HMO plan?
0:54:34 > 0:54:39Talking to a few people, neighbours and other sort of letting agents,
0:54:39 > 0:54:45I sort of decided that I'd put in permission to convert to two flats,
0:54:45 > 0:54:48as it would add more value to the building
0:54:48 > 0:54:51and hopefully be easier to let out.
0:54:51 > 0:54:55I'm quite pleased with the way that the flats have come together.
0:54:55 > 0:55:00The layout seems to work and I've got quite a lot of usable space
0:55:00 > 0:55:04and I've just tried to make the most of the rooms, really.
0:55:04 > 0:55:10Reconfiguration and cosmetic changes were way down the pecking order.
0:55:10 > 0:55:14This project was always about its structural state.
0:55:14 > 0:55:17With the underpinning, my building inspector -
0:55:17 > 0:55:22I became quite familiar with him over a number of weeks -
0:55:22 > 0:55:26he wanted to see every one-metre section
0:55:26 > 0:55:32before I poured concrete in, much like sort of foundations work.
0:55:32 > 0:55:36They're very keen to see what it's actually bearing on.
0:55:36 > 0:55:41Um, and he gave me a lot of good advice
0:55:41 > 0:55:43and was pretty helpful.
0:55:43 > 0:55:45Dave has spent his £30,000 budget
0:55:45 > 0:55:48and reckons up to £3,000 will finish it.
0:55:48 > 0:55:49Assuming that's the case,
0:55:49 > 0:55:54he will have invested £159,000 in total.
0:55:56 > 0:55:59We asked two local estate agents along to have a look.
0:55:59 > 0:56:04First, the agent who saw it in its previous dangerous state.
0:56:04 > 0:56:06So far, the owners have done actually a pretty good job.
0:56:06 > 0:56:08The architraves have been changed.
0:56:08 > 0:56:10A lot of the carpentry skill seems to be quite a high standard.
0:56:10 > 0:56:12Hopefully, it'll continue in that vein
0:56:12 > 0:56:14and should make a really good job of them.
0:56:14 > 0:56:17I can't fault the decisions they've made in terms of the layout.
0:56:17 > 0:56:20They've been very clever, especially having that big extra room
0:56:20 > 0:56:21at the very, very top.
0:56:21 > 0:56:24It's smart. They've made use of absolutely all the space.
0:56:24 > 0:56:27So, let's talk valuations.
0:56:28 > 0:56:31If the ground floor flat was put on the open market,
0:56:31 > 0:56:35you should look to achieve somewhere in the region of £110,000-£120,000.
0:56:35 > 0:56:37You'd be looking at the ground floor apartment
0:56:37 > 0:56:40in the current open market, £130,000.
0:56:40 > 0:56:44Well, the ground floor flat -
0:56:44 > 0:56:48I was thinking around £120,000, so, sort of averaged out...
0:56:48 > 0:56:49That sounds about right.
0:56:49 > 0:56:54And both agents valued the upper flat at around £130,000.
0:56:54 > 0:56:57But although Dave was advised by Planning
0:56:57 > 0:57:01that the upstairs flat couldn't be regarded as a two-bed flat,
0:57:01 > 0:57:05the agents think they could market and sell it as such
0:57:05 > 0:57:08with the living room becoming a bedroom.
0:57:08 > 0:57:14So, with these two valuations of £130,000 for each flat,
0:57:14 > 0:57:19that would mean a huge pre-tax profit of £101,000.
0:57:20 > 0:57:24However, it's still the rental that Dave is interested in,
0:57:24 > 0:57:26so both agents gave a top valuation
0:57:26 > 0:57:31of £575 per calendar month for the ground floor flat.
0:57:31 > 0:57:34And for the top floor flat, they both agreed a rental
0:57:34 > 0:57:36of £600 per calendar month,
0:57:36 > 0:57:40which would mean a possible yield of just under 9%.
0:57:42 > 0:57:46So, with this tricky project behind him, would he do it again?
0:57:47 > 0:57:48No definite plans.
0:57:48 > 0:57:50We'll rent these out for a few months
0:57:50 > 0:57:53and then hopefully, I'll be back in the auction room.
0:57:55 > 0:57:58Well, that's it for today's show, but we'll have more properties
0:57:58 > 0:58:01that were bought at auction for you next time,
0:58:01 > 0:58:02here, on Homes Under The Hammer.
0:58:02 > 0:58:06- From Martin and me, it's goodbye. - Goodbye.