0:00:02 > 0:00:03Hello and welcome to the programme.
0:00:03 > 0:00:04Now, whoever you are out there,
0:00:04 > 0:00:06there is definitely a project to suit you.
0:00:06 > 0:00:08Yes, it could be a fast and neat spruce-up,
0:00:08 > 0:00:11or a labour of love that never quite gets finished.
0:00:11 > 0:00:13Whatever you're looking for,
0:00:13 > 0:00:15I'm pretty sure you can buy it Under The Hammer.
0:00:41 > 0:00:43There's always a huge range of property
0:00:43 > 0:00:44you can buy at an auction.
0:00:44 > 0:00:46Yes, and a wide range of buyers.
0:00:46 > 0:00:50Let's see where the winning bids landed on today's show.
0:00:51 > 0:00:54Coming up on the show, this developer in Carlisle
0:00:54 > 0:00:56is making me a little nervous.
0:00:56 > 0:00:58Did you view the property?
0:00:58 > 0:01:01Well... At a distance!
0:01:01 > 0:01:04Whereas in Manchester, I'm confident this flat
0:01:04 > 0:01:06shouldn't take too long to sort.
0:01:06 > 0:01:08- Timescale?- I think it would take about 4-6 weeks.
0:01:08 > 0:01:11- A weekend, I'd have thought. - Possibly, yeah!
0:01:11 > 0:01:14And I know there's options in Essex,
0:01:14 > 0:01:16when just one lot will get you three properties.
0:01:16 > 0:01:18So, loads of potential here.
0:01:18 > 0:01:20It certainly gets my stamp of approval.
0:01:22 > 0:01:23Back in at 51...
0:01:23 > 0:01:25All these properties are being sold at auction
0:01:25 > 0:01:27and we'll find out who bought them
0:01:27 > 0:01:28and what they paid for them
0:01:28 > 0:01:30when they went Under The Hammer.
0:01:36 > 0:01:39I'm in Carlisle in Cumbria.
0:01:39 > 0:01:42Positioned very close to the border of Scotland,
0:01:42 > 0:01:46it has the honour of being Britain's most besieged place.
0:01:46 > 0:01:50But on the positive side, it does have great transport links
0:01:50 > 0:01:53to Glasgow, Birmingham, Manchester and London.
0:01:53 > 0:01:57And besides, there's not been a besieging in ages.
0:01:57 > 0:01:58Does that mean one's due?
0:01:58 > 0:02:00Anyway, we're leaving the city
0:02:00 > 0:02:04and going out to Carlisle's largest suburb, Harraby.
0:02:07 > 0:02:09The property I'm here to see
0:02:09 > 0:02:10is on a busy main road,
0:02:10 > 0:02:13but just a stone's throw away from the shops.
0:02:13 > 0:02:16It's a semidetached, three-bed property,
0:02:16 > 0:02:19with a guide price of £40,000-plus.
0:02:19 > 0:02:20Now, that's a bonus.
0:02:20 > 0:02:23Busy main road, you've got off-street parking.
0:02:23 > 0:02:25That's on the plus side.
0:02:25 > 0:02:29On the minus side, it does rather look like these gates
0:02:29 > 0:02:32haven't been painted since Carlisle was last under siege.
0:02:32 > 0:02:35Maybe there's a clue there as to what's in store for me, inside.
0:02:37 > 0:02:39Straight into the lounge,
0:02:39 > 0:02:42the front room with an old-fashioned fire and fireplace there,
0:02:42 > 0:02:43but a decent size.
0:02:45 > 0:02:47But those old fires are a sign
0:02:47 > 0:02:49to look around for radiators,
0:02:49 > 0:02:51and, no, I can't see any.
0:02:51 > 0:02:53So that's a job that'll need doing.
0:02:53 > 0:02:56Through into the kitchen.
0:02:56 > 0:02:58Small kitchen, old-fashioned kitchen,
0:02:58 > 0:03:00just needs a refurb in here.
0:03:00 > 0:03:01And a bathroom off the kitchen
0:03:01 > 0:03:03with a sink...
0:03:03 > 0:03:06..but no toilet as yet.
0:03:06 > 0:03:09Let's have a look and see if we can find our toilet.
0:03:10 > 0:03:12It's not there.
0:03:14 > 0:03:15The toilet's there.
0:03:15 > 0:03:17A lovely shade of yellow.
0:03:17 > 0:03:19You could actually make that bathroom bigger
0:03:19 > 0:03:21and there's endless things you can do with the kitchen,
0:03:21 > 0:03:24so down here could be sorted,
0:03:24 > 0:03:25but what's upstairs?
0:03:25 > 0:03:29Probably not a bathroom, I'm guessing.
0:03:29 > 0:03:32But what a difference you could make to the space down here,
0:03:32 > 0:03:34if it were possible to relocate the bathroom
0:03:34 > 0:03:36to its rightful level, upstairs.
0:03:37 > 0:03:41# Oh, I'm in the bathroom. #
0:03:42 > 0:03:44But let's check out the possibilities.
0:03:48 > 0:03:51Right, upstairs to the three bedrooms,
0:03:51 > 0:03:53which are here, here and here.
0:03:53 > 0:03:56Now, this one seems to be the smaller of the three.
0:03:56 > 0:03:58OK, your first option would be
0:03:58 > 0:04:00to have this as your bathroom, upstairs.
0:04:00 > 0:04:03It would be a nice-sized bathroom,
0:04:03 > 0:04:05but it would take away a bedroom,
0:04:05 > 0:04:07so you'd only have two bedrooms,
0:04:07 > 0:04:09but the bathroom would be upstairs.
0:04:09 > 0:04:12The other option is with this being the bigger bedroom,
0:04:12 > 0:04:13you could actually partition off
0:04:13 > 0:04:17part of this bedroom to make into the bathroom.
0:04:17 > 0:04:20It wouldn't be as big, but you'd keep your three bedrooms.
0:04:20 > 0:04:22And that would be my choice.
0:04:23 > 0:04:26Some of the original features up here, like these fireplaces,
0:04:26 > 0:04:28I'd keep and restore.
0:04:28 > 0:04:30Some of the others, like the original wiring,
0:04:30 > 0:04:33and the electrical fixtures and fittings,
0:04:33 > 0:04:35well, they'll need bringing up to safe and modern standards.
0:04:35 > 0:04:40Nothing short of a total rewire would be my route.
0:04:42 > 0:04:45Out into the back garden, which is an OK size.
0:04:45 > 0:04:48You've got a greenhouse here, which I'd look to get rid of
0:04:48 > 0:04:51and maybe just put some nice grass here, level it out.
0:04:51 > 0:04:53That's the side of the garage, just there,
0:04:53 > 0:04:56and that, to me, looks like asbestos, which I'd want to get rid of,
0:04:56 > 0:04:58get some specialist help in, get rid of that
0:04:58 > 0:05:00in the safest possible way
0:05:00 > 0:05:02and have a safe garage there.
0:05:02 > 0:05:04If you see that type of corrugated cement,
0:05:04 > 0:05:06it could be a sign of asbestos.
0:05:06 > 0:05:10It was pretty common in out buildings and garages for a time,
0:05:10 > 0:05:12and although safe enough unless damaged,
0:05:12 > 0:05:16I always think it's worth getting checked out.
0:05:16 > 0:05:18With that, it's time to see what a local estate agent
0:05:18 > 0:05:22makes of the property, guided at £40,000.
0:05:22 > 0:05:25First impressions, obviously, it's a three-bed semi.
0:05:25 > 0:05:28It's a good, you know, ex-local authority house,
0:05:28 > 0:05:30well built, you're going to be here for a long time.
0:05:30 > 0:05:33The whole house needs a real good programme of modernisation.
0:05:33 > 0:05:35That's its biggest problem, really.
0:05:35 > 0:05:40So, what would the refurbished property's market value be?
0:05:40 > 0:05:42Fully modernised up,
0:05:42 > 0:05:45I would expect this property to achieve around £85,000.
0:05:45 > 0:05:48And if it came to the rental market, I would expect it to achieve
0:05:48 > 0:05:51somewhere in the region of £450 per calendar month.
0:05:52 > 0:05:55This property does have a bit of a strange layout, downstairs,
0:05:55 > 0:05:58but the possibilities are endless.
0:05:58 > 0:06:00Who had the vision to take it on
0:06:00 > 0:06:01when it went Under The Hammer?
0:06:02 > 0:06:04Nice and simple, round figure of 40,
0:06:04 > 0:06:06who's here? 40.
0:06:06 > 0:06:07At 40, am I bid?
0:06:07 > 0:06:0835 then start me.
0:06:08 > 0:06:10At 35, here.
0:06:10 > 0:06:12At £35,000.
0:06:12 > 0:06:1536, madam. 37. 38. 39.
0:06:15 > 0:06:17Concentrating on these two at the moment.
0:06:17 > 0:06:1939. 40.
0:06:19 > 0:06:21Can you at 40? 41.
0:06:21 > 0:06:2342, here. 43. 44...
0:06:23 > 0:06:26Bidding rockets past the guide price
0:06:26 > 0:06:28and continues to where we rejoin, at £50,500.
0:06:29 > 0:06:30Sick of waiting!
0:06:30 > 0:06:33£50,500. To you, madam.
0:06:33 > 0:06:35Back in at 51. Half.
0:06:36 > 0:06:39It's with you, here, sir, at £51,000.
0:06:39 > 0:06:41Against you and against you.
0:06:41 > 0:06:43First time at 51.
0:06:43 > 0:06:44Second time at 51.
0:06:45 > 0:06:46Half.
0:06:48 > 0:06:49Any time!
0:06:50 > 0:06:53Selling this. Well done.
0:06:53 > 0:06:56And if the successful bidder's face is familiar,
0:06:56 > 0:06:58it's because Alex has been on the show before.
0:06:58 > 0:07:00when he bought another Carlisle property
0:07:00 > 0:07:02to add to his rental portfolio.
0:07:05 > 0:07:09He came along to meet me with his Border collie, Pip.
0:07:09 > 0:07:11Border collies are a local breed, here,
0:07:11 > 0:07:13on the English-Scottish border,
0:07:13 > 0:07:15used for herding sheep.
0:07:15 > 0:07:20So, had Alex rounded up a bargain with his latest £51,000 purchase?
0:07:20 > 0:07:23- Alex, nice to meet you.- Nice to meet you.- Congratulations.- Thank you.
0:07:23 > 0:07:26Tell us about the auction experience. Did you go on your own?
0:07:26 > 0:07:28No, I went with my other half, who is a nurse,
0:07:28 > 0:07:31and my other half's off work cos of the dog,
0:07:31 > 0:07:32so she hasn't been into work.
0:07:32 > 0:07:33Because of the dog?
0:07:33 > 0:07:36The dog, well, Pip managed to injure her twice
0:07:36 > 0:07:39in two separate dog-related walking incidents, so...
0:07:39 > 0:07:41Oh, dear!
0:07:41 > 0:07:44Yes. Managed to pull her over and do her wrist
0:07:44 > 0:07:46and, also, she managed to just fall over herself,
0:07:46 > 0:07:48down a pothole and break her knee, so...
0:07:48 > 0:07:52- Keep away from Pip, then, when walking.- I would say, yes!
0:07:54 > 0:07:57Seems like Pip has a tendency to rush headlong into things.
0:07:57 > 0:07:59Perhaps a little bit like his owner?
0:08:00 > 0:08:02Did you view the property?
0:08:02 > 0:08:05Well... At a distance!
0:08:05 > 0:08:07As I drove past it, I kind of looked and went,
0:08:07 > 0:08:10"It's got an asbestos garage" and that was it.
0:08:10 > 0:08:12I didn't read the legal pack.
0:08:12 > 0:08:14I didn't do any of the proper things.
0:08:14 > 0:08:17- However, I have got three properties almost the same.- Ah!
0:08:17 > 0:08:19So I do, kind of...
0:08:19 > 0:08:23I've got a lot in a similar kind of nature, so it's not a massive shock.
0:08:23 > 0:08:25Oh, dear.
0:08:25 > 0:08:28Not viewing the property, not reading the legal pack,
0:08:28 > 0:08:32certainly not what we'd recommend here on Hammer.
0:08:32 > 0:08:34Even though Alex does have experience
0:08:34 > 0:08:36in dealing with this type of housing,
0:08:36 > 0:08:37no two properties are the same,
0:08:37 > 0:08:39as Alex discovered.
0:08:39 > 0:08:42I was hoping slightly more in the way of electrics
0:08:42 > 0:08:45- and central heating and general things...- Yes!
0:08:45 > 0:08:48..but it wasn't there, so... But the price was relatively OK for that.
0:08:48 > 0:08:50The fabric of the building is sound.
0:08:50 > 0:08:52I noticed there were double glazed windows in.
0:08:52 > 0:08:55So, Alex, tell us what you're going to actually do with this property.
0:08:55 > 0:08:57Right, well, starting from the back,
0:08:57 > 0:08:58there is an asbestos garage,
0:08:58 > 0:09:00which was one of the few things I picked up on.
0:09:00 > 0:09:01That, I will probably take down.
0:09:01 > 0:09:05There's no need to, because it's only a problem
0:09:05 > 0:09:06when you're actually moving it,
0:09:06 > 0:09:09but I think I'll take it down and just get rid for the time being.
0:09:09 > 0:09:10There's a fence there to go.
0:09:10 > 0:09:11The fence at the back's to repair.
0:09:11 > 0:09:14The lean-to, at the back of the property, needs to come down,
0:09:14 > 0:09:17because I'm going to have to use the outside wall
0:09:17 > 0:09:19to get the bathroom moved from where it currently is,
0:09:19 > 0:09:21next to the kitchen, upstairs.
0:09:21 > 0:09:24I'm going to knock all the walls through in the kitchen
0:09:24 > 0:09:25to make it one big kitchen diner.
0:09:25 > 0:09:27And the third bedroom upstairs,
0:09:27 > 0:09:29the big long bedroom, I'm going to subdivide that
0:09:29 > 0:09:32and put the bathroom into that.
0:09:32 > 0:09:34You'll project manage? Every...
0:09:34 > 0:09:35No, I'll do a lot of the work.
0:09:35 > 0:09:38You'll do a lot of the work yourself? Hands-on, obviously.
0:09:38 > 0:09:40Yeah, well I'm a qualified electrician, allegedly,
0:09:40 > 0:09:42although I don't do an awful lot of it myself!
0:09:42 > 0:09:45Several electricians have just fallen over laughing at that!
0:09:45 > 0:09:48I've got a painting and decorating business.
0:09:48 > 0:09:50Also, it's getting the tradesmen when you want them.
0:09:50 > 0:09:53It's all very well someone saying, "I'll do it at a good price",
0:09:53 > 0:09:55but if it's going to be two months down the line
0:09:55 > 0:09:57and it's going to hold me up, then... I'll have to...
0:09:57 > 0:09:59So, what it is, you've got all the bases covered,
0:09:59 > 0:10:00more or less, yourself?
0:10:00 > 0:10:04I would say most of them. I am inherently lazy so...
0:10:04 > 0:10:06Well, obviously not!
0:10:06 > 0:10:11So if the price is right and I can get it done on budget and on time.
0:10:11 > 0:10:16But I think with this house you could spend an awful lot of money for jobs that any man can do.
0:10:16 > 0:10:18You mentioned budgets. What is your budget for this?
0:10:18 > 0:10:22What would you like to stay underneath to get it from this to where you want it?
0:10:22 > 0:10:25I would hope to be there for 65.
0:10:25 > 0:10:27That will include the solicitors fees,
0:10:27 > 0:10:29it will include the buyers premium at the auction.
0:10:29 > 0:10:3265 or 66 is the target.
0:10:32 > 0:10:35I would be disappointed if it was any more than that.
0:10:35 > 0:10:39And the timescale in order to get this where you want it? The end goal?
0:10:39 > 0:10:41I would say three to five months
0:10:41 > 0:10:44but I have just bought some sheep, as you do.
0:10:44 > 0:10:48- Obviously!- Every man should have a flock of sheep!
0:10:48 > 0:10:51Especially around here. It is a status symbol!
0:10:51 > 0:10:53So I have got 50 sheep.
0:10:53 > 0:10:55They lamb five months from now
0:10:55 > 0:10:58so I need to have this done by then, definitely.
0:10:58 > 0:11:00So I will be busy.
0:11:00 > 0:11:04What part your partner is going to play? I am sure she will have some kind of part. Interiors maybe?
0:11:04 > 0:11:09I can tell you now and she will know now, everything will be magnolia and white.
0:11:09 > 0:11:11The tiles in the bathroom, I use the same tiles in every house.
0:11:11 > 0:11:14The worktops are the same in every house.
0:11:14 > 0:11:17The carpets, I know exactly... The carpets are the same. It's dull.
0:11:17 > 0:11:21But she will come and help with the final clean up and tidy up
0:11:21 > 0:11:25- and just general support. And walking the beast.- Yes, the beast.
0:11:25 > 0:11:28- The beast.- The injury beast. - The injury beast.
0:11:28 > 0:11:30So is property in the family?
0:11:30 > 0:11:34Have you started this generation of buying properties and renting them out?
0:11:34 > 0:11:37I would love to think it was something to do with my great-grandfather
0:11:37 > 0:11:41because apparently he was the mayor of Carlisle, a very capable man.
0:11:41 > 0:11:43I think it skipped a lot of generations, including mine.
0:11:43 > 0:11:47He was quite a bright fellow and he built about 200 houses,
0:11:47 > 0:11:51at least 200 houses. Just normal terraced houses.
0:11:52 > 0:11:56His comment was that whilst he stood none of his children would starve.
0:11:56 > 0:11:59So when he died, the family sold them
0:11:59 > 0:12:05and my grandmother kept her money to one side and I sort of suspect
0:12:05 > 0:12:08the reason we have got some money now would be to do that.
0:12:08 > 0:12:12So subconsciously then, you are sort of rebuilding that. That family...
0:12:12 > 0:12:18Yes. Deep down buried in that tumultuous psyche of mine, there is
0:12:18 > 0:12:21- probably some need to get back to the 200.- Good luck.
0:12:21 > 0:12:24I hope everything works out for you.
0:12:24 > 0:12:26Thanks. Nice meeting you.
0:12:28 > 0:12:30Alex seems incredibly confident about what
0:12:30 > 0:12:32he wants to achieve with this property.
0:12:32 > 0:12:35He has done it before so he is experienced.
0:12:35 > 0:12:37He's got a bathroom and a toilet to move
0:12:37 > 0:12:39and he's got to get rid of that asbestos garage as well.
0:12:39 > 0:12:42Will he achieve it? You can find out later on in the programme.
0:12:48 > 0:12:51Time to leave Cumbria and head towards Lancashire
0:12:51 > 0:12:54and the hustle and bustle of Manchester.
0:12:54 > 0:12:58And three miles north of the city is the popular suburb of Blakely.
0:13:01 > 0:13:0510 minutes from the metro link with its five minute journey
0:13:05 > 0:13:08into the centre of Manchester is the property I am here to see.
0:13:08 > 0:13:12It's in this fairly substantial block of flats.
0:13:12 > 0:13:17It was a fifth floor flat, guide price at £70,000. Let's have a look.
0:13:18 > 0:13:20# Ten storey love song
0:13:22 > 0:13:25# I built this thing for you
0:13:26 > 0:13:30# And I love you true. #
0:13:36 > 0:13:38And actually, I do love it.
0:13:38 > 0:13:41There is nothing, absolutely nothing to worry about here.
0:13:41 > 0:13:45The open plan living room kitchen is a real nice space
0:13:45 > 0:13:47and the units look absolutely fine.
0:13:47 > 0:13:49Neutral decor, all good.
0:13:49 > 0:13:51If you are looking for something really
0:13:51 > 0:13:56outstanding in a property, how about these views over Manchester.
0:13:56 > 0:14:01And a little balcony to soak it all in from. Just glorious.
0:14:01 > 0:14:03# Don't worry
0:14:04 > 0:14:06# About a thing
0:14:07 > 0:14:09# 'Cause every little thing
0:14:09 > 0:14:11# Is gonna be alright. #
0:14:14 > 0:14:16There are two good-sized bedrooms.
0:14:16 > 0:14:18This was originally a local authority flat
0:14:18 > 0:14:21so the proportions aren't bad.
0:14:21 > 0:14:22Talking of which...
0:14:24 > 0:14:26So often in a flat like this,
0:14:26 > 0:14:28the bathroom would be a bit of a compromise.
0:14:28 > 0:14:30Small, cramped.
0:14:30 > 0:14:34You know, as with the rest of the flat, it is a bit of a surprise.
0:14:34 > 0:14:38Yes, it needs a bit of modernising but the space...
0:14:38 > 0:14:41Yes, it's a good size. Result!
0:14:47 > 0:14:51A two bed of this quality just outside the city centre for £70,000.
0:14:52 > 0:14:54It really seems a good deal to me
0:14:54 > 0:14:58and the communal areas just outside the flat are well maintained
0:14:58 > 0:15:01and even better, there is a real treat outside.
0:15:01 > 0:15:04These flats are actually in a gated community
0:15:04 > 0:15:09and are surrounded by fabulous green space and a lake.
0:15:09 > 0:15:11Of course, communal space doesn't come for free
0:15:11 > 0:15:15and the charges here are just over £100 a month.
0:15:15 > 0:15:18So you need to factor that into your calculations.
0:15:18 > 0:15:21We have asked along a local property expert to see
0:15:21 > 0:15:24if he is as impressed with the property as I am.
0:15:25 > 0:15:27First impressions, not too bad.
0:15:27 > 0:15:31I think, a little bit of time on it, a bit of a clean,
0:15:31 > 0:15:33it could be very nice.
0:15:33 > 0:15:35I have to agree.
0:15:35 > 0:15:39I think it will only take a little bit of work to really bring out the best here.
0:15:39 > 0:15:43So what sort of price would you expect were you to sell the property?
0:15:44 > 0:15:50Once renovated, I would put this property on the market at £75,000.
0:15:51 > 0:15:5475,000 is quite disappointing.
0:15:54 > 0:15:58I do appreciate there is not a lot of wiggle room to add any value here.
0:15:58 > 0:16:01Its problem is, it is too good.
0:16:01 > 0:16:03Fine if you want to live here though.
0:16:03 > 0:16:07But is there any other reason for what seems to be quite a low resale value?
0:16:07 > 0:16:11There are other properties on the market that haven't sold
0:16:11 > 0:16:16so I don't know how fast you would be able to make a return.
0:16:16 > 0:16:19OK, fair enough. But is there rental potential here?
0:16:21 > 0:16:24The rental market at the moment is strong and I would imagine
0:16:24 > 0:16:29this property would rent in the region of £550 per calendar month.
0:16:32 > 0:16:36All in all, I can't seem to find anything wrong with this one.
0:16:36 > 0:16:40It is a good flat, good location, pretty decent guide price.
0:16:40 > 0:16:43Let's see who went for it when it went under the hammer.
0:16:45 > 0:16:49This lot was later on in the day and though guided at £70,000,
0:16:49 > 0:16:54the auctioneer had to go as low as 45,000 before anyone
0:16:54 > 0:16:57in the room could be tempted into making a bid.
0:16:57 > 0:17:0045, can I say? 45, I saw you first.
0:17:00 > 0:17:0245. 46. 47. 48.
0:17:02 > 0:17:0549. 50. 51. 32. 53.
0:17:05 > 0:17:0754.
0:17:07 > 0:17:1055. 56. 57. No?
0:17:10 > 0:17:1456 with you. It is against you on my right. 57 anywhere else? Manchester.
0:17:14 > 0:17:16First time at 56. Second time at 56.
0:17:16 > 0:17:201,000? 57. 58. First time at 58.
0:17:20 > 0:17:24Second time at 58. For the third and final time at £58,000.
0:17:24 > 0:17:26Are we all done?
0:17:27 > 0:17:29I can't quite sell. It's not sold.
0:17:33 > 0:17:38Yes, it seemed nobody wanted the flat in Blakely quite enough.
0:17:38 > 0:17:41The reserve price wasn't met and it didn't sell.
0:17:42 > 0:17:44# Don't you want me baby
0:17:46 > 0:17:49# Don't you want me, oh-oh-oh. #
0:17:51 > 0:17:53But don't worry.
0:17:53 > 0:17:56This wouldn't be much of an episode if nothing had happened.
0:17:56 > 0:17:59The flat was brought after the auction by Adrian,
0:17:59 > 0:18:02a former financial professional and now property developer.
0:18:05 > 0:18:08- Adrian, good to meet you.- Good to meet you too.- Congratulations.
0:18:08 > 0:18:11Tell me why you wanted to buy this flat.
0:18:11 > 0:18:13Well, I went along to the auction
0:18:13 > 0:18:16but I left before this one actually came up.
0:18:16 > 0:18:21I was a bit disappointed that I had to come home from the auction empty-handed.
0:18:21 > 0:18:25So when I got home I had a look at the unsold lots
0:18:25 > 0:18:29and saw this one was still available.
0:18:29 > 0:18:33So the following day, I rang up the auctioneers and made them an offer.
0:18:33 > 0:18:36- And it was 57.- 57,000.- Wow!
0:18:36 > 0:18:38It just goes to show because a lot of people don't know that
0:18:38 > 0:18:42you can phone up if things aren't successful and you can make offers.
0:18:42 > 0:18:45- You don't necessarily have to have been bidding on it.- No.
0:18:45 > 0:18:48- Are you pleasantly surprised? - Quite pleased with it, actually.
0:18:48 > 0:18:51I would have thought you would be. It is in great nick actually.
0:18:51 > 0:18:55It is, yes. It should be quite easy to rent out I hope.
0:18:55 > 0:18:59Adrian actually lives in Surrey, a fair old trek from this flat.
0:18:59 > 0:19:03So what was he thinking in buying so far afield?
0:19:03 > 0:19:06I was interested in investing in Manchester particularly
0:19:06 > 0:19:10because I think it is quite a good rental area.
0:19:10 > 0:19:13So this flat in particular then, what was it that...
0:19:13 > 0:19:16I went for it because of the location. It's just outside the city centre.
0:19:16 > 0:19:19And also I thought with a two bedroom apartment it would
0:19:19 > 0:19:23appeal to quite a number of different types of renters.
0:19:23 > 0:19:28Maybe young professionals, sharers, downsizers, single person.
0:19:28 > 0:19:31So quite a lot of flexibility really.
0:19:31 > 0:19:35Obviously being quite a long distance away does bring up issues of managing the property.
0:19:35 > 0:19:37How are you going to do that?
0:19:37 > 0:19:40I manage all of my properties myself
0:19:40 > 0:19:42so if there are only maintenance issues,
0:19:42 > 0:19:45I can get local people to help out.
0:19:45 > 0:19:48- Local tradesmen, etc.- But you find tenants do you?- Yes, I do.
0:19:48 > 0:19:52- I advertise myself.- Tell me what you are going to do to it, if anything?
0:19:52 > 0:19:54It is in pretty good condition
0:19:54 > 0:19:58so I don't think it requires too much by way of decoration.
0:19:58 > 0:20:01- I'm going to let it fully finished. - So what is the budget?
0:20:01 > 0:20:03It is more likely furnishings budget.
0:20:03 > 0:20:05£3,000, something like that.
0:20:05 > 0:20:10I think it will just be the cost of the furnishings and one or two bits of redecoration.
0:20:10 > 0:20:12Carpets, curtains and that should be it. Job done.
0:20:12 > 0:20:15And in terms of turning it around? Timescale?
0:20:15 > 0:20:18- I think it would take about four to six weeks max.- Yes.
0:20:18 > 0:20:21- A weekend I would have thought! - Possibly, yes. I hope so.
0:20:23 > 0:20:26For the work that needs doing here, I think that timescale of four
0:20:26 > 0:20:30to six weeks and the budget of £3,000 is more than generous.
0:20:30 > 0:20:34So having picked Manchester specifically for its good
0:20:34 > 0:20:37rental potential, what does he think he can get for the flat?
0:20:39 > 0:20:42What kind of rental do you think you might be able to achieve?
0:20:42 > 0:20:45I think it should get around 575 a month.
0:20:45 > 0:20:49- That delivers a pretty impressive yield on your investment.- Yes.
0:20:49 > 0:20:53- Over 10%. Is this the sort of thing you are hoping to do more of?- Yes.
0:20:53 > 0:20:56I have bought a number of rental properties over the last few years
0:20:56 > 0:20:59- so I have got 15 now in my portfolio.- Brilliant.
0:20:59 > 0:21:02And I am looking to grow that over time.
0:21:02 > 0:21:07- What is your job?- Full-time property investor.- What was it before?
0:21:07 > 0:21:10- I was in financial services before that.- OK.
0:21:10 > 0:21:13So a good background to have on the money side of things.
0:21:13 > 0:21:16- Yes. Hopefully. - What made you leave that?
0:21:16 > 0:21:20I just wanted to run my own business really. To be my own boss.
0:21:20 > 0:21:22So I decided to go into property.
0:21:22 > 0:21:25What is on the agenda for you in the future?
0:21:25 > 0:21:27I shall look to continue developing properties
0:21:27 > 0:21:31and adding to my rental portfolio. I don't intend to retire actually.
0:21:31 > 0:21:33I can see myself doing this for many years to come.
0:21:33 > 0:21:36- Congratulations and good luck with it.- Thank you very much.
0:21:36 > 0:21:39- Look forward to seeing how you get on.- Thank you.
0:21:41 > 0:21:44Adrian highlighting a really interesting opportunity there.
0:21:44 > 0:21:47It's always worth checking after the auction to see which
0:21:47 > 0:21:51properties didn't sell and see if you like the look of them.
0:21:51 > 0:21:54In this case, I think he has got an absolute corker.
0:21:54 > 0:21:59It was good at 70,000. But for what he paid? Fantastic.
0:21:59 > 0:22:02How will he get on? Visiting the local furniture shops!
0:22:02 > 0:22:05You can find out later in the show.
0:22:06 > 0:22:10Still to come, this couple find out auctions aren't always easy.
0:22:10 > 0:22:14At a property auction you are there all day waiting for the next lot to come along.
0:22:14 > 0:22:16The suspense will kill you at the house auctions.
0:22:18 > 0:22:22And it's been a glamorous life for our developer in Manchester.
0:22:22 > 0:22:24I actually had my camp bed here and stayed over
0:22:24 > 0:22:26and cracked on and did all of the work.
0:22:30 > 0:22:34It was in the historic Cumbrian city of Carlisle that we first came
0:22:34 > 0:22:39across this three bed, semidetached house with a guide price of £40,000.
0:22:39 > 0:22:42This house had a bit of a time warp feel to it.
0:22:42 > 0:22:43With not only dated decor,
0:22:43 > 0:22:48but a downstairs layout that didn't really meet modern requirements.
0:22:48 > 0:22:51It had a small kitchen with a bathroom off it.
0:22:51 > 0:22:54While the bathroom was missing one normally standard thing.
0:22:57 > 0:23:00Let's have a look and see if we can find our toilet.
0:23:01 > 0:23:03It's not there.
0:23:05 > 0:23:07The toilet is there. A lovely shade of yellow.
0:23:08 > 0:23:14# All by myself
0:23:15 > 0:23:20# Don't want to be all by myself
0:23:22 > 0:23:23# Any more. #
0:23:23 > 0:23:27So really the layout downstairs was a bit of a nonsense.
0:23:27 > 0:23:30It was going to need a complete rethink
0:23:30 > 0:23:35and the man for the job was Alex and his trusty companion, Pip.
0:23:36 > 0:23:38Alex had a range of skills from electrician,
0:23:38 > 0:23:40property developer to farmer.
0:23:42 > 0:23:47- Did you view the property?- Well... At a distance!
0:23:47 > 0:23:49As I drove past it I kind of looked
0:23:49 > 0:23:53and went it has got an asbestos garage and that was it.
0:23:53 > 0:23:56I didn't read the legal pack, I didn't do any of the proper things.
0:23:56 > 0:24:01However, I have got three properties almost the same. So I do kind of...
0:24:01 > 0:24:03I've got quite a lot of a similar kind of nature
0:24:03 > 0:24:05so it's not a massive shock.
0:24:05 > 0:24:08Alex had a total budget of £65,000.
0:24:08 > 0:24:11This had to include the 51,000 he paid at auction,
0:24:11 > 0:24:16plus all the refurbishment costs and the usual legal fees and expenses.
0:24:16 > 0:24:19And he couldn't afford to have too many unforeseen issues
0:24:19 > 0:24:22as he had a rather unusual deadline to meet.
0:24:23 > 0:24:27I would say three to five months but I have just bought some sheep.
0:24:27 > 0:24:32- As you do!- Obviously!- Every man should have a flock of sheep.
0:24:32 > 0:24:35Especially around here. It is a status symbol!
0:24:35 > 0:24:37So I have got 50 sheep.
0:24:37 > 0:24:39They lamb five months from now
0:24:39 > 0:24:43so I need to have this done by then, definitely.
0:24:44 > 0:24:49So the clock was ticking, the sheep couldn't wait and nor could we.
0:24:50 > 0:24:53Four months later, we are back to see if Alex had met his deadline.
0:24:55 > 0:24:57# It's time to begin isn't it
0:24:57 > 0:25:00# I get a little bit bigger
0:25:00 > 0:25:02# But then I'll admit
0:25:02 > 0:25:06# I'm just the same as I was. #
0:25:06 > 0:25:09From the outside, there is no perceptible changes
0:25:09 > 0:25:11but what about the inside?
0:25:16 > 0:25:19Wow! Apart from carpets,
0:25:19 > 0:25:21the front reception room is just about finished.
0:25:23 > 0:25:25But remember, it was that kitchen and bathroom
0:25:25 > 0:25:28and lean-to the area that really needed sorting out.
0:25:32 > 0:25:34And boy has Alex sorted it.
0:25:34 > 0:25:36The bathroom has gone
0:25:36 > 0:25:39and the space is now incorporated into a much larger kitchen.
0:25:44 > 0:25:46And with the lean-to removed,
0:25:46 > 0:25:49there are now patio doors that lead straight out on to the garden.
0:25:49 > 0:25:52But where have the bathroom and toilet gone?
0:25:54 > 0:25:57Is that it? Now, at the top of the stairs.
0:25:57 > 0:26:00Here, we have our bathroom.
0:26:00 > 0:26:02We stole a bit from the bedroom,
0:26:02 > 0:26:04the big long bedroom at the back of the house.
0:26:04 > 0:26:07We're going to tile this, shower here, shower screen there.
0:26:07 > 0:26:10It should be a nice bathroom and we're relatively happy with it.
0:26:11 > 0:26:14It may not be the biggest bathroom in the world
0:26:14 > 0:26:17but I think it is a great solution to that downstairs layout problem.
0:26:23 > 0:26:25And more importantly,
0:26:25 > 0:26:28Alex has managed to squeeze that bathroom in without losing a bedroom.
0:26:31 > 0:26:33Though there may be a few more days work here,
0:26:33 > 0:26:36predominantly, the inside of the house is ready to go.
0:26:36 > 0:26:39But what about the outside at the back?
0:26:41 > 0:26:44The garden is somewhat of a mess still.
0:26:44 > 0:26:48We will be getting a digger in to take the garage down and at the
0:26:48 > 0:26:53same time we will use that to level the garden and then we will turf it.
0:26:53 > 0:26:55It was a bit wild and woolly out there
0:26:55 > 0:26:59and there were a few wild trees and plenty of nettles and wildlife.
0:26:59 > 0:27:04Talking about wild and woolly, what about Alex's pressing deadline?
0:27:05 > 0:27:10I am lambing shortly, in about two weeks.
0:27:10 > 0:27:14As the old saying almost goes, lambs wait for no man.
0:27:14 > 0:27:18Not only that, but he has a tenant waiting in the wings.
0:27:18 > 0:27:21Double the pressure so he can't hang around.
0:27:21 > 0:27:23And although Alex has done a lot of work himself,
0:27:23 > 0:27:27he has also had help from friends and family, especially his son.
0:27:27 > 0:27:30And no doubt dog Pip has leant a paw or two.
0:27:30 > 0:27:32But how much has it all cost?
0:27:32 > 0:27:37My aim was, budget wise, to come in at 65 with the costs
0:27:37 > 0:27:41from buying, the solicitors costs and everything else.
0:27:41 > 0:27:45We will be broadly on that. 64,600 is what I'm expecting.
0:27:48 > 0:27:52So an all in all total of just below £65,000.
0:27:52 > 0:27:55It seems like Alex has got a lot of house for his money.
0:27:55 > 0:27:58But what do to local property experts think?
0:28:02 > 0:28:04First, the agent who saw it last time.
0:28:06 > 0:28:08The layout is much better.
0:28:08 > 0:28:11Before, the bathroom was really small with a little lean-to
0:28:11 > 0:28:13on the back alongside the kitchen.
0:28:13 > 0:28:16Now he has moved the bathroom to the first floor
0:28:16 > 0:28:18and has also retained the three bedrooms.
0:28:18 > 0:28:21The standard of the work done so far looks good.
0:28:21 > 0:28:23The kitchen is virtually finished
0:28:23 > 0:28:25and has been done to quite a high standard.
0:28:25 > 0:28:28If the rest of the work's done to this standard then yes,
0:28:28 > 0:28:30it will certainly complement the property.
0:28:32 > 0:28:35Alex is now committed to renting out the house
0:28:35 > 0:28:39but if he did look to sell on at a later date, what might it be worth?
0:28:40 > 0:28:44If brought to the market, we would market this property at £89,950
0:28:44 > 0:28:49with a realistic expectation, we could get a sale in the high 80s.
0:28:49 > 0:28:52If I was to put this property on the open market I would market
0:28:52 > 0:28:56it at around £95,000 with an aim to achieve around 90,000.
0:28:56 > 0:29:00Far better than I thought. I thought I was shooting high at 85.
0:29:01 > 0:29:04Now, I probably should be selling it!
0:29:04 > 0:29:07But I have agreed a contract and the tenant is in in ten days.
0:29:07 > 0:29:10So without that agreement to rent in place, based on that
0:29:10 > 0:29:15figure of £90,000, he could have seen a pre-tax profit of £25,000.
0:29:15 > 0:29:18But what about those all-important rental values?
0:29:18 > 0:29:21If the property came to rental market, I would expect it to
0:29:21 > 0:29:24achieve somewhere in the region of £450 per calendar month.
0:29:24 > 0:29:27The rental demand for something like this would be quite strong.
0:29:27 > 0:29:30We would expect to achieve £450 per calendar month.
0:29:30 > 0:29:33I am slightly under that. I am 430, what I'm renting it for.
0:29:33 > 0:29:35But I aim for long-term tenants.
0:29:36 > 0:29:39£430 per calendar month still isn't bad
0:29:39 > 0:29:43and would see an annual rental yield of just below 8%.
0:29:43 > 0:29:46For the next few months, he has got his sheep to think about
0:29:46 > 0:29:49and Alex is building a couple of flats.
0:29:49 > 0:29:51But after that, will he do another renovation?
0:29:53 > 0:29:54I would.
0:29:54 > 0:29:56The only thing is,
0:29:56 > 0:30:00I have done about 11 properties in about just over two years.
0:30:00 > 0:30:03I think currently, I am probably not going to.
0:30:03 > 0:30:06I think my family will kill me if I do!
0:30:06 > 0:30:09They are getting a bit sick of the long hours and a grumpy father!
0:30:17 > 0:30:20This is the village of Stansted in Essex.
0:30:20 > 0:30:22# Airport
0:30:23 > 0:30:24# Airport...
0:30:24 > 0:30:26No, not the airport.
0:30:26 > 0:30:28Stansted Mountfitchet, as the village is known.
0:30:28 > 0:30:31Surprisingly, it's not even under the flight path.
0:30:31 > 0:30:33I bet you didn't expect that.
0:30:33 > 0:30:36What you might expect is good transport links to London
0:30:36 > 0:30:37and of course you get them.
0:30:37 > 0:30:39# Airport
0:30:41 > 0:30:42# Airport... #
0:30:45 > 0:30:48Just off the main road is this quiet little lane,
0:30:48 > 0:30:51which is only a couple of minutes walk from the train station.
0:30:51 > 0:30:54And perhaps more importantly, the local pub.
0:30:54 > 0:30:59But what about the property I'm here to see? Or properties should I say.
0:30:59 > 0:31:02Well, the guide price was £175,000
0:31:02 > 0:31:06and for that you get this building here.
0:31:06 > 0:31:10Now, pay attention. Not the one in the middle.
0:31:10 > 0:31:15But you do get the one right on the end and one just around the corner.
0:31:15 > 0:31:18I am not going to try and explain any further. I'm going to investigate.
0:31:19 > 0:31:22This lot is not straightforward so just bear with me.
0:31:22 > 0:31:25We have the brick building near the top of the lane.
0:31:27 > 0:31:31This smaller wooden structure further along on the corner.
0:31:31 > 0:31:35And then opposite that, this detached two-storey building.
0:31:36 > 0:31:38All three are commercial properties
0:31:38 > 0:31:41and some of it lies within a conservation area.
0:31:41 > 0:31:42The question for me is,
0:31:42 > 0:31:45could there be potential for residential use here?
0:31:46 > 0:31:49This building has a commercial feel to it.
0:31:49 > 0:31:52I know it has currently got B1 business use attached
0:31:52 > 0:31:54and it feels like you are walking into offices.
0:31:54 > 0:32:00Look, you have strip lighting, an office through here with loads of paper and a couple of desks.
0:32:00 > 0:32:03At the back, you have got some stairs which
0:32:03 > 0:32:07I don't think comply to building regs judging by the look of them.
0:32:07 > 0:32:09And through here, another office.
0:32:09 > 0:32:12There is no character at all in here.
0:32:12 > 0:32:15You can really imagine people doing lots of work. And look at this.
0:32:15 > 0:32:18An old photo copier that doesn't work.
0:32:18 > 0:32:21I am going to investigate further but so far,
0:32:21 > 0:32:23there is not that much to write home about here.
0:32:25 > 0:32:27There is also a little loo at the back
0:32:27 > 0:32:30and up the stairs another two offices.
0:32:30 > 0:32:32Another two boring offices!
0:32:32 > 0:32:35But as always, I have a potential plan up my sleeve for that.
0:32:35 > 0:32:38But more on that later on.
0:32:38 > 0:32:40For now, it's across the courtyard to the wooden building
0:32:40 > 0:32:44and it seems to be two rooms in a sort of L-shape.
0:32:44 > 0:32:47It is pretty derelict with some spots of damp.
0:32:47 > 0:32:50But if you can see past that, there is enough space here
0:32:50 > 0:32:52that presents a good opportunity.
0:32:52 > 0:32:54# You suddenly hear a bell
0:32:54 > 0:32:56# And right away you can tell
0:32:56 > 0:33:00# That this could be the start of some thing grand. #
0:33:02 > 0:33:06Right. Ready to be befuddled again by the layout?
0:33:06 > 0:33:10The entrance to the red brick building is actually behind it,
0:33:10 > 0:33:14so we go back up the lane and there's a gate just to the left-hand side.
0:33:17 > 0:33:19This really is an interesting building.
0:33:19 > 0:33:22You've got that lovely red brick on the outside.
0:33:22 > 0:33:24The weather boarding on this side.
0:33:24 > 0:33:28Then you get in and it is a right old state.
0:33:28 > 0:33:32But this is amazing because I know this is an old printing press
0:33:32 > 0:33:36and for love nor money, you could not move this thing.
0:33:36 > 0:33:38That must weigh tonnes.
0:33:38 > 0:33:42It is potentially worth a fortune because you don't see those around.
0:33:42 > 0:33:45But you can see this was obviously a little printing room.
0:33:45 > 0:33:47There is remnants of business cards everywhere.
0:33:47 > 0:33:49So what can you do in here?
0:33:49 > 0:33:52Well, here is a little nugget of information.
0:33:52 > 0:33:56This is the only one out of the three that sits within the conservation area.
0:33:56 > 0:33:59So if you wanted to make any changes, you would have to chat
0:33:59 > 0:34:03to the local conservation officer and adhere to those regulations.
0:34:03 > 0:34:06That could throw a spanner in the works.
0:34:06 > 0:34:09I also think it is probably single skin.
0:34:09 > 0:34:11So loads of potential here.
0:34:11 > 0:34:14Pretty on the outside, not so great on the inside,
0:34:14 > 0:34:17but it certainly gets my stamp of approval.
0:34:18 > 0:34:20Sorry about that.
0:34:20 > 0:34:23There is a second room behind the wall at the end of this building
0:34:23 > 0:34:26that can only be accessed by a door out in the lane.
0:34:26 > 0:34:29But it gives you even more space.
0:34:29 > 0:34:33This certainly is a quirky lot and a blank page at the moment.
0:34:33 > 0:34:36But with some imagination and a lot of hard work,
0:34:36 > 0:34:39there could be some profit in this development.
0:34:39 > 0:34:41Especially when you know this.
0:34:41 > 0:34:45As of May 2013, regulations were relaxed
0:34:45 > 0:34:48and new permitted development rights came into play, allowing
0:34:48 > 0:34:52change of use from offices with a B1 business classing, like this
0:34:52 > 0:34:56behind me, to residential without applying for planning permission.
0:34:56 > 0:34:59Now, previously there was no guarantee this consent would be
0:34:59 > 0:35:04granted so this is great news and it could save you time and money.
0:35:05 > 0:35:07Now that's not to say this is a walk in the park.
0:35:07 > 0:35:11There would still be planning and conservation hoops to jump through,
0:35:11 > 0:35:13which of course costs time and money.
0:35:13 > 0:35:16Talking of money, time to ask a local estate agent
0:35:16 > 0:35:19to take a look and see if the market here
0:35:19 > 0:35:22is ready for some interesting residential property.
0:35:22 > 0:35:25The red brick building behind us,
0:35:25 > 0:35:29potentially, would be ideal for perhaps one person downsizing.
0:35:29 > 0:35:32Currently, that would be in very high demand.
0:35:32 > 0:35:37It does need quite a lot of maintenance but I think the finished article could be fantastic.
0:35:37 > 0:35:40I think the single-storey property on the end, potentially,
0:35:40 > 0:35:43it could be a great one bedroom apartment or a buy to let.
0:35:43 > 0:35:45Very close to the station
0:35:45 > 0:35:48so I think it would suit quite a few people in this location.
0:35:48 > 0:35:50I think the two-storey building is quite interesting.
0:35:50 > 0:35:54We would have a high demand for a two bedroom house.
0:35:54 > 0:35:58Because it is in such a good location you wouldn't necessarily need a garden,
0:35:58 > 0:36:02but as long as there is parking, it is just a couple of minutes from the station.
0:36:02 > 0:36:06So I feel that could potentially be a house really, not an apartment.
0:36:06 > 0:36:07Excellent.
0:36:07 > 0:36:11And if this interesting lot goes for anything like the £175,000
0:36:11 > 0:36:15guide price, I think there could be some real potential to make
0:36:15 > 0:36:18three fantastic properties and a good profit.
0:36:18 > 0:36:20What does the agent think?
0:36:20 > 0:36:23I think if the properties were to be converted into residential
0:36:23 > 0:36:26properties, the property behind me would be in the region
0:36:26 > 0:36:31of £225,000 to maybe £250,000, depending on the specification.
0:36:31 > 0:36:36I think the single-storey property on the end, if decorated to a very high
0:36:36 > 0:36:39standard, would achieve something in the region
0:36:39 > 0:36:42of £175,000 to £200,000.
0:36:42 > 0:36:44I think the two-storey building,
0:36:44 > 0:36:47if it was developed into a two bedroom house,
0:36:47 > 0:36:50as a freehold property, would be in the region
0:36:50 > 0:36:52of £240,000 to £250,000.
0:36:55 > 0:36:58It's not often I get to say this, but with this auction lot,
0:36:58 > 0:37:03you get not one, not two, but three properties.
0:37:03 > 0:37:05Yes, it's an ambitious project,
0:37:05 > 0:37:08but what an exciting opportunity it could be for someone.
0:37:08 > 0:37:12Plenty of options and so much potential.
0:37:12 > 0:37:15Let's see who agreed when we went to auction.
0:37:15 > 0:37:18An interesting little lot this, down in Stansted Mountfitchet.
0:37:18 > 0:37:22Who would like to give me a start on this? I don't know.
0:37:22 > 0:37:24160, something like that to start me off.
0:37:24 > 0:37:29What about 150 then to try and help? 140?
0:37:29 > 0:37:32OK, 140 I have got. 141 anywhere?
0:37:35 > 0:37:38141. 142. 143.
0:37:39 > 0:37:44144. 145. 146.
0:37:44 > 0:37:48The auctioneer started the bidding well under the £175,000 guide price
0:37:48 > 0:37:52but bidders soon came thick and fast.
0:37:52 > 0:37:55We rejoin the bidding at £180,000.
0:37:55 > 0:37:59180. 181. 182.
0:37:59 > 0:38:02183. 184.
0:38:02 > 0:38:07185. 186. 187.
0:38:08 > 0:38:14188. 189. 190. 191?
0:38:15 > 0:38:19No? With you sir at £190,000.
0:38:19 > 0:38:22Selling in the middle of the room there at the back.
0:38:22 > 0:38:24It is against the gentleman here on my left.
0:38:24 > 0:38:26190 for the first.
0:38:26 > 0:38:28190 for the second.
0:38:28 > 0:38:31190 for the third and final time.
0:38:31 > 0:38:34Are we all done? Sold for 190.
0:38:34 > 0:38:37Bidding right from the start was Paul
0:38:37 > 0:38:40and his determination paid off at 190,000.
0:38:45 > 0:38:49I met local property developer Paul and Heather, his wife and company
0:38:49 > 0:38:53secretary, to find out what his plans for these three buildings are.
0:38:55 > 0:39:00- Paul and Heather, congratulations. Well done.- Thank you. - Lovely to meet you both today.
0:39:00 > 0:39:02- You have got three little lots in one here.- Yes.
0:39:02 > 0:39:05What was it that took your eye, Heather?
0:39:05 > 0:39:09It is local so it's a nice project for us to have on our doorstep.
0:39:09 > 0:39:11And it's just looks like something interesting,
0:39:11 > 0:39:13something a bit more unusual.
0:39:13 > 0:39:17Not a modern property and something we can get our teeth into with designing.
0:39:17 > 0:39:20This is something that is not going to be for everybody on auction
0:39:20 > 0:39:24day because you are almost sort of dipping your toe into the unknown.
0:39:24 > 0:39:28As it stands, it is a commercial lot really, isn't it?
0:39:28 > 0:39:30Did that not put you off on auction day?
0:39:30 > 0:39:34I think that is what really kept the price down to be honest.
0:39:34 > 0:39:37There are planning issues. It's a bit of a tight site.
0:39:37 > 0:39:39You are on the edge of a conservation area.
0:39:39 > 0:39:42But we did our research before we bought the lot and found out
0:39:42 > 0:39:45what we could about the site and we decided it was worth a go.
0:39:45 > 0:39:49So what are your plans? What are you going to do with these properties?
0:39:49 > 0:39:54We hope to do the office into one bedroom flats.
0:39:54 > 0:39:57That should make two very nice properties.
0:39:57 > 0:40:00The smaller, long building, that will be again
0:40:00 > 0:40:02a one bedroom little house.
0:40:02 > 0:40:05And then with the third corner office,
0:40:05 > 0:40:08that could be either commercial
0:40:08 > 0:40:12or it could still be another one bedroom dwelling.
0:40:12 > 0:40:14Tell me, why are you thinking about turning
0:40:14 > 0:40:18the two-storey building into flats? I see that as a house.
0:40:18 > 0:40:20I think the reason why we'd prefer to make it two flats,
0:40:20 > 0:40:23it'll be worth more money as two flats because we're looking at
0:40:23 > 0:40:26renting the units out rather than selling them on,
0:40:26 > 0:40:29and also there's no garden for it, and I think people want a house,
0:40:29 > 0:40:32expect a garden, whereas perhaps people with a flat are
0:40:32 > 0:40:35prepared for a bit of parking and a flat and they won't want the garden.
0:40:35 > 0:40:39We're lucky, in as much as, with the two-storey office building,
0:40:39 > 0:40:41we're hoping to get that converted under the new
0:40:41 > 0:40:43permitted development rights.
0:40:43 > 0:40:46There is a prior approval process that you need to go through
0:40:46 > 0:40:49first, which basically means you're writing to your local planning
0:40:49 > 0:40:52authority, tell them what you plan to do, and they'll either say yes
0:40:52 > 0:40:55or no, or they'll consult with highways and people like that.
0:40:55 > 0:40:58So, I mean, this isn't going to be a straightforward little number
0:40:58 > 0:41:02- for you guys, is it?- No.- There's a lot of hard work that needs to be put into this...
0:41:02 > 0:41:03- Yes.- Yeah.- ..but it'll be so rewarding
0:41:03 > 0:41:06if you get it right and if you get the permissions.
0:41:06 > 0:41:09That's right, yes. Three separate projects.
0:41:09 > 0:41:12And each one is different and comes up with its own issues.
0:41:12 > 0:41:15Yeah, but all bought under the one hammer, which is what I love.
0:41:15 > 0:41:18I mean, the nice thing about it is each property has got its own
0:41:18 > 0:41:22separate title. So we haven't got to start splitting titles up.
0:41:22 > 0:41:25They've all got their own services, their own electric, sewage,
0:41:25 > 0:41:28everything, so half the work's been done.
0:41:28 > 0:41:30And the way we looked at it was, as a fallback,
0:41:30 > 0:41:32if we don't get any residential use, we'll just restore it,
0:41:32 > 0:41:35use it commercially and get some income that way.
0:41:35 > 0:41:37These guys have really done their homework,
0:41:37 > 0:41:40as you would expect from professionals,
0:41:40 > 0:41:44and they have a healthy £30,000 per property as a budget.
0:41:44 > 0:41:47The first stage of development is to convert the two-storey offices,
0:41:47 > 0:41:51and they're hoping to get them completed in three to four months.
0:41:51 > 0:41:55- So I know you're no novice to the auctions, are you, Paul?- No.
0:41:55 > 0:41:58No, I'm more familiar with the motor trade auctions.
0:41:58 > 0:42:00I've been in the motor trade all my life,
0:42:00 > 0:42:04and I was a car auctioneer for sort of four or five years.
0:42:04 > 0:42:06And how does it differ from a property auction,
0:42:06 > 0:42:08apart from spending loads more money?.
0:42:08 > 0:42:11Yeah, the speed of it is the main difference, really.
0:42:11 > 0:42:12A car auction is a hell of a lot faster.
0:42:12 > 0:42:15The suspense will kill you with the house auctions.
0:42:15 > 0:42:17Oh, Paul and Heather, I'm so excited for you.
0:42:17 > 0:42:18I hope you get the yes, yes and yes,
0:42:18 > 0:42:21and we can come back and see three amazing developments.
0:42:21 > 0:42:25- Definitely.- Lovely to meet you. - Thank you very much.- Thanks, Lucy. Nice meeting you.
0:42:27 > 0:42:28Well, I think it is great news
0:42:28 > 0:42:32that Paul is now focusing on his property developing career.
0:42:32 > 0:42:34The difference between cars and houses,
0:42:34 > 0:42:38cars usually go down in value, whilst houses tend to go up.
0:42:38 > 0:42:41Will that be the case here, and will Paul and Heather get their
0:42:41 > 0:42:45all-important planning permission so they get three for the price of one?
0:42:45 > 0:42:48You can join me later in the show to find out.
0:42:51 > 0:42:54Well, one property is done and dusted but don't go anywhere yet.
0:42:54 > 0:42:57- What about the others? - It's been a while since we visited.
0:42:57 > 0:43:00What do you reckon? Will there be surprises?
0:43:00 > 0:43:01Let's go back and find out.
0:43:03 > 0:43:06Time now to return to North Manchester,
0:43:06 > 0:43:09and this fifth floor, two-bedroom flat in Blackley.
0:43:20 > 0:43:23It was situated next to a picturesque lake,
0:43:23 > 0:43:27it had beautiful views, and with a guide price of just £70,000,
0:43:27 > 0:43:29what's not to love in this high rise?
0:43:31 > 0:43:34Well, so often in a flat like this, the bathroom would be
0:43:34 > 0:43:39a bit of a compromise, but the space, yeah, it's a good size.
0:43:39 > 0:43:41Result!
0:43:41 > 0:43:43It was bought after auction by Adrian.
0:43:43 > 0:43:45That's right, after auction.
0:43:46 > 0:43:50I went along to the auction, but I left before this one actually
0:43:50 > 0:43:54- came up.- Oh.- When I got home, I had a look at the unsold lots.
0:43:54 > 0:43:58So the following day, I rang up the auctioneers and made them an offer.
0:43:58 > 0:44:01But it just goes to show, because a lot of people don't know
0:44:01 > 0:44:03that you can phone up if things aren't successful.
0:44:03 > 0:44:06- That's right, yeah.- You can make offers.
0:44:12 > 0:44:16Yes, Adrian was delighted to get his hands on this place
0:44:16 > 0:44:19for the price of just £57,000.
0:44:19 > 0:44:22He lived in Surrey but had seen Greater Manchester
0:44:22 > 0:44:25as a good location for rental investments.
0:44:25 > 0:44:29He had a budget of £3,000 and a timescale of four to six weeks
0:44:29 > 0:44:32to spruce it up and get the flat ready for rental.
0:44:37 > 0:44:39Well, seven weeks have passed.
0:44:39 > 0:44:43Has Southerner Adrian suitably souped up this Manchester suite?
0:44:55 > 0:44:57The changes may be subtle
0:44:57 > 0:45:00but they all add up to make it feel more homely.
0:45:00 > 0:45:03We caught up with Adrian to find out what he'd done.
0:45:05 > 0:45:09Well, it took about a day to clear out all the furniture that was left.
0:45:09 > 0:45:12I contacted a local charity and they came
0:45:12 > 0:45:16and took all the furniture free of charge, which was good.
0:45:16 > 0:45:19Which saved me a bit of money.
0:45:19 > 0:45:22I redecorated the flat throughout,
0:45:22 > 0:45:26fitted new carpets and curtains,
0:45:26 > 0:45:29a new tap in the kitchen,
0:45:29 > 0:45:34and just generally tidied it up and cleaned up all of the apartment.
0:45:34 > 0:45:37This always seemed a good property, but I don't think you can
0:45:37 > 0:45:40underestimate the difference that new carpets
0:45:40 > 0:45:44and a new coat of paint, not to mention a thorough clean, can make.
0:45:44 > 0:45:47No more so than in the bathroom.
0:45:47 > 0:45:51It was quite grubby when I bought it, so I gave it a good clean.
0:45:51 > 0:45:54I painted the walls with a special bathroom paint,
0:45:54 > 0:45:58fitted a new loo seat, new mirror,
0:45:58 > 0:46:01bathroom cabinet and some towel rails,
0:46:01 > 0:46:05and it's come out really well. Looks as good as new.
0:46:05 > 0:46:08I think it's gone from grubby to great,
0:46:08 > 0:46:10and all just using a bit of elbow grease.
0:46:12 > 0:46:17And while we're talking about small changes making big differences...
0:46:17 > 0:46:20We had to change the lock on the balcony door
0:46:20 > 0:46:22because I didn't have any keys at all,
0:46:22 > 0:46:24so I was pleased to get that open,
0:46:24 > 0:46:27and I worked out that it was a south-facing balcony,
0:46:27 > 0:46:29so you get quite a lot of sunshine in
0:46:29 > 0:46:31during the day, which should be nice for our tenants.
0:46:40 > 0:46:44Well, Britain may not always be sunny but come that summer,
0:46:44 > 0:46:47the balcony will be a wonderful place to relax.
0:46:47 > 0:46:48Just look at that view.
0:46:49 > 0:46:52Other than using a plumber for the kitchen tap,
0:46:52 > 0:46:55Adrian has done all the work himself, so how long did that take?
0:46:58 > 0:47:01Well, originally, I was looking at probably six to eight weeks,
0:47:01 > 0:47:03but as I actually stayed up here
0:47:03 > 0:47:08and did all the work in a concerted period, it only took eight days.
0:47:08 > 0:47:11Living some distance from the property,
0:47:11 > 0:47:14as long as you sort of coordinate all of the work and get other people
0:47:14 > 0:47:17to come when you're actually up here, it's not too bad at all.
0:47:17 > 0:47:21I actually had my camp bed here and stayed over and I worked for
0:47:21 > 0:47:2312, 14 hours each day and got it done.
0:47:23 > 0:47:27Obviously, if you do the work yourself, it does save quite a lot of money, so it's, you know,
0:47:27 > 0:47:30if you're able to do the decorating, it's well worth considering.
0:47:30 > 0:47:33Well, I imagine those eight days working were a slog,
0:47:33 > 0:47:37but I think that's so much more sensible than having to travel
0:47:37 > 0:47:40between Manchester and his home in Surrey.
0:47:40 > 0:47:43Not only will he have saved money by doing the job himself,
0:47:43 > 0:47:46but he can get the flat on the market much quicker.
0:47:46 > 0:47:51But have those concessions helped Adrian stick to his budget?
0:47:51 > 0:47:54Well, originally, I was going to spend about 3 or 4,000,
0:47:54 > 0:47:58but that was on the basis that I was going to go down the fully furnished route,
0:47:58 > 0:48:01but having spoken to some of the agents,
0:48:01 > 0:48:04they recommended that I went unfurnished
0:48:04 > 0:48:08because they said there would be a greater demand for unfurnished.
0:48:08 > 0:48:13So, in the end, I came in substantially below that at £950.
0:48:14 > 0:48:16Only 950 quid?
0:48:16 > 0:48:20Suddenly, those long days all seem worth it.
0:48:20 > 0:48:23Adrian only paid £57,000 for the flat at auction.
0:48:24 > 0:48:28Will changing his mind about furnishing it be a good decision?
0:48:28 > 0:48:31We've asked along two local property experts.
0:48:31 > 0:48:34Do they think this flat will appeal to the local market?
0:48:34 > 0:48:36I love the property, the way it's presented.
0:48:36 > 0:48:39We've got high levels of demand for properties like flats
0:48:39 > 0:48:41and like houses as well,
0:48:41 > 0:48:45and I do feel that it will attract interest in the rental market.
0:48:45 > 0:48:49The owner has done a nice job with the property.
0:48:49 > 0:48:52It's clean, it's bright, it's airy,
0:48:52 > 0:48:55and I believe it would be very popular.
0:48:55 > 0:49:00Sounds good, but how will Adrian's investment of £57,950
0:49:00 > 0:49:04stand up in the open market if this flat was put up for resale?
0:49:04 > 0:49:07I think this property could achieve, in the current market,
0:49:07 > 0:49:11offers in excess of £75,000.
0:49:11 > 0:49:15In the current market, I would put at asking price of £75,000.
0:49:17 > 0:49:20And if Adrian were to rent the property?
0:49:20 > 0:49:22In the current market,
0:49:22 > 0:49:26I would set a rental value of £575 per calendar month.
0:49:26 > 0:49:29The rental market is strong.
0:49:29 > 0:49:33My rental valuation is £575 per calendar month.
0:49:33 > 0:49:35I'm very pleased with those valuations.
0:49:35 > 0:49:37They're a bit more than I was expecting.
0:49:37 > 0:49:42Those valuations would mean a pre-tax profit of around £17,000.
0:49:42 > 0:49:46However, Adrian always intended that this would be for rental,
0:49:46 > 0:49:48and if he achieved those rental figures,
0:49:48 > 0:49:51his investment would yield nearly 12%.
0:49:51 > 0:49:54It all seemed very easy-peasy,
0:49:54 > 0:49:56but Adrian has a tried and tested formula
0:49:56 > 0:49:59and it makes for good advice, so listen up.
0:49:59 > 0:50:01Saves me from telling you.
0:50:02 > 0:50:06If you're buying at auction, you need to buy at the right price,
0:50:06 > 0:50:10do your research carefully and keep a tight rein on the budget.
0:50:18 > 0:50:20Time now to return to Stansted in Essex,
0:50:20 > 0:50:24where, on this sunny summer's day, I came to see not one, not two,
0:50:24 > 0:50:28but three properties, all selling as a single lot
0:50:28 > 0:50:31with a guide price of just 175,000.
0:50:31 > 0:50:33The three were commercial properties,
0:50:33 > 0:50:37but a local estate agent didn't think getting permission to change
0:50:37 > 0:50:39them to residential would be a problem,
0:50:39 > 0:50:42opening up a wealth of possibilities.
0:50:44 > 0:50:48# Anything you want, you got it... #
0:50:57 > 0:51:00It was bought at auction for 190,000,
0:51:00 > 0:51:03by local property developer Paul and his wife Heather.
0:51:03 > 0:51:07They saw the potential, but knew the risks and had a backup plan.
0:51:08 > 0:51:13We hoped to do the office into one-bedroom flats.
0:51:13 > 0:51:17The smaller long building, that'll be a one-bedroom little house.
0:51:17 > 0:51:21And then with the third corner, that could be either commercial
0:51:21 > 0:51:25or it could still be another one-bedroom dwelling.
0:51:25 > 0:51:27And the way we looked at it was, as a fallback,
0:51:27 > 0:51:29If we don't get any residential use, we'll just use it commercially
0:51:29 > 0:51:32and get some income that way.
0:51:32 > 0:51:36With so much to be finalised, Paul and Heather could only give
0:51:36 > 0:51:41themselves a ballpark budget and set it at around 30,000 per property.
0:51:41 > 0:51:44They planned to start with the two-storey office
0:51:44 > 0:51:48and hoped it would be converted into flats in three to four months.
0:51:54 > 0:51:56Eight months later, and we're back to find out
0:51:56 > 0:52:00if Paul and Heather's ambitious plans have come to pass.
0:52:00 > 0:52:04First, the two-storey building they intended to turn into flats.
0:52:16 > 0:52:19Well, even though it's not quite finished,
0:52:19 > 0:52:22it's still difficult to tell that this used to be an office block.
0:52:22 > 0:52:25There is a world of difference from their previous layout.
0:52:25 > 0:52:29We caught up with Paul and Heather to talk us through the changes.
0:52:30 > 0:52:34Yeah, we've completely stripped it back to a bare shell.
0:52:34 > 0:52:37Because it was offices, it had no insulation in it,
0:52:37 > 0:52:40had to be rewired, replumbed, all the usual.
0:52:40 > 0:52:43We've had to smash all the floor out, put insulation in.
0:52:43 > 0:52:47- New steel across here.- New stairs. - Pulled walls down.
0:52:47 > 0:52:50- And, uh, reconfigurated the rooms. - Yeah.
0:52:50 > 0:52:53Yeah, the staircase didn't comply, that was at the back,
0:52:53 > 0:52:56so all we were left with was the roof and four walls with this building.
0:52:56 > 0:52:59The roof was the only bit we didn't have to touch.
0:53:00 > 0:53:04But it wasn't all that building work that caused the couple the most problems.
0:53:04 > 0:53:08Originally, they thought each building came with all the services
0:53:08 > 0:53:12set up and running. It turned out that wasn't the case.
0:53:12 > 0:53:13There was no gas,
0:53:13 > 0:53:17and there was only one water main, so we've have to have gas brought in
0:53:17 > 0:53:19and an extra water main.
0:53:19 > 0:53:22It took months to get the water put on,
0:53:22 > 0:53:25the gas brought in and it just holds the whole project up,
0:53:25 > 0:53:26so that was a learning curve.
0:53:26 > 0:53:30Trying to get services into a new build can take a lot of time.
0:53:30 > 0:53:34We've now got gas and electric and water into all the properties,
0:53:34 > 0:53:36so at least the messy, hard bit is out of the way.
0:53:38 > 0:53:40Yes, for all your best laid plans,
0:53:40 > 0:53:42your schedule will depend upon availability of people
0:53:42 > 0:53:46like service providers, material suppliers and tradesmen.
0:53:48 > 0:53:52# When I'm, when I'm good and ready... #
0:53:58 > 0:54:02But this was only one of the three buildings, so what about the others?
0:54:02 > 0:54:05Let's get Heather to talk us through.
0:54:05 > 0:54:07Well, what was the corner property...
0:54:07 > 0:54:09With the corner stores, because it was single skim
0:54:09 > 0:54:12on the outside walls, we had to knock that down,
0:54:12 > 0:54:16and so we're now going to put cavity walls around here,
0:54:16 > 0:54:18and then this is going to have to be taken down as well
0:54:18 > 0:54:20and have cavity walls put in.
0:54:20 > 0:54:23And we've had to level the floors.
0:54:23 > 0:54:26We're hoping to have two bedrooms in here,
0:54:26 > 0:54:29instead of the one bedroom that we first thought.
0:54:29 > 0:54:32This was originally going to be a bedroom and the lounge,
0:54:32 > 0:54:34and now we're going to turn these two into two bedrooms,
0:54:34 > 0:54:37so we have a bedroom and an en-suite at this end,
0:54:37 > 0:54:40and then up towards the front,
0:54:40 > 0:54:44another bedroom and this will then be a lounge-kitchen-diner.
0:54:44 > 0:54:47So each bedroom will have its own en suite
0:54:47 > 0:54:49and should look quite nice when it's finished.
0:54:51 > 0:54:54As they hoped, there wasn't a problem getting planning permission
0:54:54 > 0:54:56under the new permitted development rights.
0:54:56 > 0:55:00But the third red brick building is in a conservation area.
0:55:00 > 0:55:04However, Paul and Heather have submitted an application to convert
0:55:04 > 0:55:08it into a one bed cottage, so the process is underway
0:55:08 > 0:55:11and, for the moment, it makes handy store room.
0:55:11 > 0:55:15So after eight months and all that work, how's that budget looking?
0:55:17 > 0:55:19We've spent about 50,000 on the project,
0:55:19 > 0:55:22but that includes getting all the services into the other properties.
0:55:22 > 0:55:25But we're probably going to be, realistically,
0:55:25 > 0:55:27we've set ourselves a target
0:55:27 > 0:55:31of probably up to 200,000 on the whole project,
0:55:31 > 0:55:34and that would be rebuilding that corner store
0:55:34 > 0:55:38and virtually rebuilding the red brick building.
0:55:38 > 0:55:42£200,000 is over double the original budget,
0:55:42 > 0:55:46and that's on top of the 190,000 they paid at auction.
0:55:46 > 0:55:49Still, for that, they will have two one-bed flats,
0:55:49 > 0:55:53a two-bed flat in the corner and a one-bed cottage.
0:55:53 > 0:55:58Time to ask a local estate agent what he thinks of the plans.
0:55:58 > 0:56:00There is big demand for apartments
0:56:00 > 0:56:02at the moment in Stansted Mountfitchet.
0:56:02 > 0:56:06It's in a very quiet location,
0:56:06 > 0:56:08but not too far away from the centre of the village.
0:56:08 > 0:56:11I think the finish and the level that they're doing with the property
0:56:11 > 0:56:15is great. I think they've really worked making great inroads
0:56:15 > 0:56:18into going in the right direction, so really and truly,
0:56:18 > 0:56:21I think they've done the best with the space that they have available.
0:56:21 > 0:56:22Well, that's praise, indeed,
0:56:22 > 0:56:27but Paul and Heather have a total projected spend 390,000.
0:56:27 > 0:56:30Does he think they'll be able to make that back?
0:56:30 > 0:56:34What would be the value of these two one-bed flats once completed?
0:56:34 > 0:56:38I believe these particular flats are worth £160,000 each.
0:56:39 > 0:56:42I believe each one of these flats
0:56:42 > 0:56:45would get £650 per calendar month.
0:56:45 > 0:56:50Wow. That's a total of 320,000 for these two flats alone.
0:56:50 > 0:56:54What about the proposed two-bedroom corner flat?
0:56:54 > 0:56:57If we was looking to market that property,
0:56:57 > 0:56:59we'd market that property at £185,000.
0:56:59 > 0:57:04For the purposes of rental, I believe we'd get £800 per calendar month.
0:57:04 > 0:57:08And if Paul and Heather get permission to convert the red brick building?
0:57:08 > 0:57:11If I was asked to market that property,
0:57:11 > 0:57:12I would market it at £215,000.
0:57:12 > 0:57:15If I was asked to rent that particular property,
0:57:15 > 0:57:19I would be looking between 850 and £900 per calendar month.
0:57:19 > 0:57:22Yeah, that should be good, yeah. Yeah, we're not planning to sell them anyway.
0:57:22 > 0:57:24We want to keep them long-term,
0:57:24 > 0:57:27but it's nice to know that there's some profit there.
0:57:27 > 0:57:29Well, this certainly is a profit there
0:57:29 > 0:57:31and with all those figures flying about,
0:57:31 > 0:57:34I got out the official Hammer calculator, and I can tell you
0:57:34 > 0:57:37that the properties would give Paul and Heather
0:57:37 > 0:57:41a potential pre-tax profit of 330,000,
0:57:41 > 0:57:45or a yield of over 9%, and that is great news!
0:57:45 > 0:57:48And although the couple have a long way to go before it's finished,
0:57:48 > 0:57:52they won't have such a long way to travel to check on the property.
0:57:53 > 0:57:56- We've enjoyed the village and the town...- Yes.
0:57:56 > 0:58:00..and decided to move here ourselves, so yeah.
0:58:00 > 0:58:03And we'll keep looking at the auctions just to see what comes along.
0:58:07 > 0:58:09Well, lots of hard work
0:58:09 > 0:58:12and determination has gone into the projects on today's show.
0:58:12 > 0:58:14Absolutely, and for some,
0:58:14 > 0:58:17the hard work is only beginning here on Homes Under The Hammer.
0:58:17 > 0:58:20- We look forward to seeing you next time.- Yep, goodbye!- Goodbye.