0:00:02 > 0:00:04Hello and welcome to the show. Now, there's a pretty good chance
0:00:04 > 0:00:07that the most money you will ever spend will be on property.
0:00:07 > 0:00:09Unless you're thinking of buying a football club, of course.
0:00:09 > 0:00:12Ha-ha, yeah! There can always be a lot at stake, so why not pop
0:00:12 > 0:00:16down to your local auction house and try and bag yourselves a bargain?
0:00:42 > 0:00:45People have all kinds of plans when they buy a property at auction
0:00:45 > 0:00:47but those plans can quickly change.
0:00:47 > 0:00:49You could say that, yes.
0:00:49 > 0:00:52So what did our buyers on today's show have lined up
0:00:52 > 0:00:53for their properties?
0:00:53 > 0:00:56Well, let's take a look and see what they've bought.
0:00:56 > 0:00:59Coming up, this developer in Derbyshire
0:00:59 > 0:01:00has already found her dream team.
0:01:00 > 0:01:03My partner's a builder and I'm hoping that between us we can do it.
0:01:03 > 0:01:06Or, if not, there's always my mum.
0:01:06 > 0:01:10In Greater London, I found a bit of a mystery.
0:01:10 > 0:01:13For some reason, we have a suspended floor.
0:01:13 > 0:01:15What could this be covering up?
0:01:15 > 0:01:19And in Scotland, I find my silver lining.
0:01:19 > 0:01:21It's boarded up for obvious reasons
0:01:21 > 0:01:26but when you stand at the top here, you have got the most cracking view.
0:01:28 > 0:01:30All of these properties have been sold at auction.
0:01:30 > 0:01:33We'll find out who bought them and what they paid for them
0:01:33 > 0:01:36when they went under the hammer.
0:01:40 > 0:01:44Welcome to the county town of Matlock in Derbyshire.
0:01:44 > 0:01:47For hundreds of years, the local well-to-do have been coming here
0:01:47 > 0:01:51to relax after thermal springs were discovered in the 17th century
0:01:51 > 0:01:53and a spa was created.
0:01:54 > 0:01:59MUSIC: Steam by Peter Gabriel
0:02:05 > 0:02:08Although I don't have time for a relaxing steam spa, I've found
0:02:08 > 0:02:12a place where people used to come for comfort of a more spiritual kind.
0:02:15 > 0:02:18So, only a five-minute drive from Matlock, the property
0:02:18 > 0:02:23I'm here to see is a converted 16th-century detached chapel.
0:02:23 > 0:02:26Now, it's got a guide price of £95,000
0:02:26 > 0:02:30and I want to see how much history you get for that money.
0:02:30 > 0:02:33MUSIC: Steam by Peter Gabriel
0:02:33 > 0:02:35This chapel's already been turned into a house
0:02:35 > 0:02:37and it doesn't look very big,
0:02:37 > 0:02:40so I'm intrigued to see what's been done to it.
0:02:41 > 0:02:43Look at this.
0:02:43 > 0:02:46This is a bit of history and I've only just come in the door.
0:02:46 > 0:02:49You've got your little cloakroom area there, a couple of hooks
0:02:49 > 0:02:52and you could put your dirty wellies down there after your long walks.
0:02:52 > 0:02:55A toilet and sink in there.
0:02:55 > 0:02:57Through into this little area here,
0:02:57 > 0:03:00kitchen to my right with a Belfast sink,
0:03:00 > 0:03:03very trendy at the moment, in the corner there.
0:03:03 > 0:03:06There's a small dining area, I would think, dining table there maybe,
0:03:06 > 0:03:09or a little breakfast bar.
0:03:09 > 0:03:13I do like this, a staircase in the middle of this property
0:03:13 > 0:03:16up into the lounge area.
0:03:16 > 0:03:19You can see there's a little bit of damp and stuff,
0:03:19 > 0:03:22a slight bit of leaking as well, coming through the amazing beams.
0:03:22 > 0:03:26This here, the wood burner, seems to be the only source of heating so far,
0:03:26 > 0:03:28from what I've found.
0:03:28 > 0:03:31But you can imagine this being a chapel, the beams are amazing.
0:03:31 > 0:03:34It's pretty, very pretty.
0:03:35 > 0:03:38For anyone who wants some peace and quiet,
0:03:38 > 0:03:40this would be the perfect getaway.
0:03:40 > 0:03:43It does need some heating to make it cosier and maybe drier
0:03:43 > 0:03:48because the one thing I keep coming back to are those damp patches.
0:03:48 > 0:03:50Anyway, let's have a look upstairs.
0:03:52 > 0:03:56I am loving this spiral staircase and the use of the space
0:03:56 > 0:03:59is just perfect, really, for a building so small.
0:03:59 > 0:04:03You get the sense of how long this building must have been here,
0:04:03 > 0:04:06these beams, hundreds and hundreds of years they've been here.
0:04:06 > 0:04:07Anyway, it's a small bedroom
0:04:07 > 0:04:10but, again, it's perfectly laid out.
0:04:10 > 0:04:13In here you've got the bathroom,
0:04:13 > 0:04:15which isn't in bad condition at all, actually.
0:04:15 > 0:04:17A bit of a touch up, a bit of TLC there.
0:04:17 > 0:04:19I like it.
0:04:19 > 0:04:22Like I said, great use of space.
0:04:24 > 0:04:28With those beautiful wooden beams and the open-plan layouts,
0:04:28 > 0:04:32this has a feel of a holiday cottage, which is exactly what it is.
0:04:32 > 0:04:34Indeed, the terms of the lease, as stipulated by the
0:04:34 > 0:04:38planning department, says it can only be used as a holiday let.
0:04:38 > 0:04:41But with original features like these,
0:04:41 > 0:04:44I don't think you'd have too much trouble enticing holiday-makers.
0:04:44 > 0:04:52MUSIC: I Need A Holiday by Scouting for Girls
0:04:52 > 0:04:55So, outside at the front of the property, you do get a
0:04:55 > 0:04:57parking space, albeit very small.
0:04:57 > 0:05:01You've got a public footpath down there. But if you do come to
0:05:01 > 0:05:05somewhere as pretty as this, you're here for the walks and the scenery.
0:05:05 > 0:05:08I might book myself in.
0:05:08 > 0:05:12As much as I'd love to take a long walk in that Peak District
0:05:12 > 0:05:15countryside, before having a snooze by a roaring fireplace,
0:05:15 > 0:05:17apparently I have a job to do.
0:05:19 > 0:05:21It's a hard life.
0:05:21 > 0:05:25We've asked along an agent from the auctioneers who sold this lot.
0:05:25 > 0:05:30It's guided at £95,000 but what does he think could improve the place?
0:05:30 > 0:05:32The main negative factor is the lack of heating.
0:05:32 > 0:05:36I would suggest they perhaps fit some electric plant panel heaters.
0:05:36 > 0:05:39There is slight damp issues that need to be resolved
0:05:39 > 0:05:42and general cosmetic improvement throughout.
0:05:42 > 0:05:45Yeah, there's no doubt that would help, especially in autumn
0:05:45 > 0:05:48and winter months. What about the good points?
0:05:48 > 0:05:51I certainly like the exposed original truss,
0:05:51 > 0:05:55the location is superb for countryside walks
0:05:55 > 0:05:58and there's nearby towns, Matlock and Crich.
0:05:58 > 0:06:01So if the buyer was to let this out to holiday-makers,
0:06:01 > 0:06:04what sort of rental income could they expect?
0:06:04 > 0:06:07In my opinion, the holiday let cottage is likely to
0:06:07 > 0:06:10achieve £400 per week in high peak.
0:06:10 > 0:06:13Off-season, £200 per week.
0:06:13 > 0:06:17And if they didn't want to manage a holiday let full-time,
0:06:17 > 0:06:21what could the potential resale value be?
0:06:21 > 0:06:23In my opinion, I would feel it's likely to achieve
0:06:23 > 0:06:27in the region of £125,000 once renovated.
0:06:28 > 0:06:32What a pretty little property and a great use of the space as well.
0:06:32 > 0:06:35I do like that spiral staircase bang in the middle of the property.
0:06:35 > 0:06:39Now, it's only got planning to be a holiday let, so all those
0:06:39 > 0:06:42city dwellers, this is the place to come to have a bit of a chill-out.
0:06:42 > 0:06:46Let's see who agreed and wanted it when it went to auction.
0:06:46 > 0:06:53Lot 49, it's a stone-built detached dwelling, former chapel property.
0:06:53 > 0:06:56Start me where you'd like. Who's got 90 to put it into the bidding?
0:06:56 > 0:06:59£90,000. 90, thank you.
0:06:59 > 0:07:0290 I have as a starting bid.
0:07:02 > 0:07:0591, 91 is bid.
0:07:05 > 0:07:06At 91,000.
0:07:06 > 0:07:0892. At 93, 94...
0:07:08 > 0:07:11After a slow start it soon became clear that this unique
0:07:11 > 0:07:15property was in demand and the bids came thick and fast.
0:07:15 > 0:07:19We rejoin the bidding at £107,000.
0:07:19 > 0:07:23£107,000, we're going to sell.
0:07:23 > 0:07:27500, 108, 500.
0:07:29 > 0:07:32Final answer? Not sure.
0:07:32 > 0:07:36£108,000, once.
0:07:36 > 0:07:39£108,000, twice.
0:07:39 > 0:07:42Third chance. All done at £108,500.
0:07:42 > 0:07:44109.
0:07:44 > 0:07:47109, is that the final answer?
0:07:47 > 0:07:52£109,000, going once, going twice, third time.
0:07:52 > 0:07:55The hammer's down. It's yours, so thank you, 109,000.
0:08:00 > 0:08:03The bidding was won by Stephen on behalf of Mary who was elsewhere
0:08:03 > 0:08:06in the room when that bid of £109,000
0:08:06 > 0:08:09brought the auctioneer's hammer down.
0:08:09 > 0:08:12I caught up with the enigmatic Mary back at the chapel.
0:08:12 > 0:08:17MUSIC: Who Are You? by The Who
0:08:20 > 0:08:23- Mary, nice to meet you.- Pleased to meet you.- And congratulations.
0:08:23 > 0:08:25- Thank you very much.- What a place. - Thank you.
0:08:25 > 0:08:28Tell us about the auction experience, how was it?
0:08:28 > 0:08:31Very daunting but I didn't do the bidding myself,
0:08:31 > 0:08:33so that was less stressful.
0:08:33 > 0:08:35So who did you go with?
0:08:35 > 0:08:37I took my partner and my mum and my partner's brother,
0:08:37 > 0:08:39who did the bidding for me.
0:08:39 > 0:08:41- Oh, so he's the one who's putting his hand up and...?- Yes.
0:08:41 > 0:08:44- So you let him loose?- Let him do the bidding, yes.
0:08:44 > 0:08:46- And he did well?- Yes, he did, yes.
0:08:46 > 0:08:50- Are you happy?- Yes, very pleased now, yeah, it's all over, thank you.
0:08:50 > 0:08:52Tell us why this particular property,
0:08:52 > 0:08:54why did you go to auction for this one?
0:08:54 > 0:08:58Well, it's the location because we live next door
0:08:58 > 0:09:01and we own the land surrounding it, which, really,
0:09:01 > 0:09:03was only beneficial to us.
0:09:05 > 0:09:08Mary and her partner Stuart live in a cottage on the farm next door.
0:09:08 > 0:09:11She owns seven acres of land around this lot.
0:09:11 > 0:09:14Also, she runs a mobile catering company,
0:09:14 > 0:09:18so she certainly knows a bit about the hospitality industry.
0:09:18 > 0:09:20I think this house seems like a real good fit.
0:09:20 > 0:09:24But what does Mary plan to do to make it more holiday friendly?
0:09:24 > 0:09:27We were going to do just the inside to start with
0:09:27 > 0:09:29and we knew the roof wanted doing eventually.
0:09:29 > 0:09:31But we're looking at it now,
0:09:31 > 0:09:34we're seeing the damp that's coming through on the upper beams
0:09:34 > 0:09:38and we're thinking that we'll have to do the new slates and things
0:09:38 > 0:09:42on the roof first and then come and do the inside.
0:09:42 > 0:09:44What is your budget going to be?
0:09:44 > 0:09:48Well, we're looking at about 5-7,000 to spend on it.
0:09:48 > 0:09:52The main thing obviously is the roof and the guttering, which hasn't
0:09:52 > 0:09:55been done yet, and then it's all the internal...
0:09:55 > 0:09:57It wants new carpeting, furnishings,
0:09:57 > 0:10:00we're going to put in a new kitchen and hopefully...
0:10:00 > 0:10:02The bathroom's not too bad,
0:10:02 > 0:10:04I'm hoping that we might be able to spruce that up.
0:10:04 > 0:10:07- Exciting.- I'm excited, yeah.
0:10:07 > 0:10:15MUSIC: I'm Into Something Good by Herman's Hermits
0:10:15 > 0:10:17And rightly so.
0:10:17 > 0:10:20I think this is a beautiful property with real potential
0:10:20 > 0:10:23to make some income and, although there's work to be done on the roof,
0:10:23 > 0:10:27Mary has a little ace up her sleeve to help with that.
0:10:27 > 0:10:30- My partner's a builder... - Perfect, tick box.
0:10:30 > 0:10:34Stuart will be... He'll be doing the roof and the major fittings
0:10:34 > 0:10:36with the kitchen, et cetera.
0:10:36 > 0:10:39We'll get an electrician in to check all the wiring
0:10:39 > 0:10:40- and everything as well.- OK.
0:10:40 > 0:10:43Who's in charge when it comes to this whole project?
0:10:43 > 0:10:46- I want to say me, don't I, really? - Yes, while he's not here.
0:10:46 > 0:10:48We're both in charge because he'll obviously be in charge...
0:10:48 > 0:10:52I've no idea with the building side of things, he'll be in charge with that.
0:10:52 > 0:10:54Whereas, I'll tend to do the interior side of things.
0:10:54 > 0:10:57How long do you hope it's going to take for you to turn it around
0:10:57 > 0:11:00- to where you want to be? - I was hoping pretty sharp, really,
0:11:00 > 0:11:03to get it so that we can get it rented out.
0:11:03 > 0:11:06With the delay with the roof, it's obviously going to take a bit longer now.
0:11:06 > 0:11:09We wanted to just do the inside and, obviously, with doing the roof,
0:11:09 > 0:11:11it's going to take slightly longer now.
0:11:11 > 0:11:13But we're looking at two or three months, four months
0:11:13 > 0:11:16- at the most, probably, trying to get it...- That's a quick turnaround.
0:11:16 > 0:11:19Well, we're hoping to. If not, it'll be another season
0:11:19 > 0:11:24before we can get it onto the holiday let market.
0:11:24 > 0:11:27As the estate agent said, peak season can generate up to double the
0:11:27 > 0:11:31weekly income and so it's important Mary completes the work in time.
0:11:31 > 0:11:35Once that peak season comes along, will it be all hands on deck?
0:11:35 > 0:11:38Tell us, who's going to do the day-to-day running of your new
0:11:38 > 0:11:42- venture because you've got your food business as well?- Yes.
0:11:42 > 0:11:46Who's going to change the bedding, who's going to do the cleaning, the hoovering?
0:11:46 > 0:11:48Well, I'm hoping that between us we can do it and, if not,
0:11:48 > 0:11:52there's always my mum that can be called on or friends
0:11:52 > 0:11:56to do the day-to-day cleaning work, and that, I can call on people.
0:11:56 > 0:11:58But I'm hoping to be able to do a lot of it myself.
0:11:58 > 0:12:00- Just mucking in.- Yeah, hopefully.
0:12:00 > 0:12:02- And I wish you all the best. - Well, thank you very much.
0:12:02 > 0:12:05- I hope it works out, I'm sure it will.- All right, thank you.
0:12:05 > 0:12:07- Good luck.- Thank you.
0:12:07 > 0:12:10So Mary has finally got her hands on this property
0:12:10 > 0:12:13and she's going to venture into the holiday letting business now.
0:12:13 > 0:12:16She will have to sort out that leaky roof
0:12:16 > 0:12:18and will she be ready for spring/summer?
0:12:18 > 0:12:20You can find out later on in the programme.
0:12:25 > 0:12:27Welcome to Whetstone in North London.
0:12:27 > 0:12:31Some people believe Whetstone gets its name from the type of stone
0:12:31 > 0:12:33used to sharpen weapons, knives and tools
0:12:33 > 0:12:36and they also believe this is a chunk of it
0:12:36 > 0:12:38outside a local hostelry.
0:12:38 > 0:12:42Though others disagree and say this was a step for mounting horses.
0:12:42 > 0:12:46Thankfully, the area has more modern transport facilities nowadays
0:12:46 > 0:12:48in the form of an underground line that'll get you
0:12:48 > 0:12:51to King's Cross in 26 minutes.
0:12:51 > 0:12:57MUSIC: Look Sharp! by Joe Jackson
0:12:57 > 0:12:59Well, you've got the main road through the area
0:12:59 > 0:13:02at the end of the street and, yet, this is a relatively
0:13:02 > 0:13:04quiet, nice residential side street,
0:13:04 > 0:13:06which is good news because
0:13:06 > 0:13:09this is where the property that was up for auction is located.
0:13:09 > 0:13:12It is a first-floor, two-bedroom flat
0:13:12 > 0:13:17and a guide price of 210,000 to 220,000 quid - sounds all right.
0:13:17 > 0:13:19With Whetstone being on the outskirts of London,
0:13:19 > 0:13:21it does mean you'll get a little more for your money
0:13:21 > 0:13:25and already I like the classic '30s style of the exterior.
0:13:25 > 0:13:28So far, so good.
0:13:29 > 0:13:31Oh, dear.
0:13:31 > 0:13:35That's not a very welcoming entrance.
0:13:35 > 0:13:43Yeah sort of stone steps there and a very echoey, cold entrance.
0:13:43 > 0:13:47Let's hope the flat itself is a little bit more welcoming.
0:13:55 > 0:13:59Well, first glance, yes, maybe it is.
0:13:59 > 0:14:01Erm, what have we got?
0:14:01 > 0:14:04A nice little entrance area here, which immediately gives
0:14:04 > 0:14:07the flat a bit of an open feel, which is always good.
0:14:07 > 0:14:10A good-sized kitchen, it sort of wiggles round the corner a bit
0:14:10 > 0:14:13but lots of light coming in through the window.
0:14:13 > 0:14:15You wouldn't say it was modern units
0:14:15 > 0:14:18but you could live with that, I think.
0:14:18 > 0:14:21One bedroom there, you've got a loo, not a bad size.
0:14:21 > 0:14:25Second bedroom there, that's fairly small and then through into your main living area.
0:14:25 > 0:14:28I love the fact that you've got this bay window there.
0:14:28 > 0:14:30The old fireplace is probably dating back to when
0:14:30 > 0:14:33this property was built. A few other features.
0:14:33 > 0:14:36You know, it does what it's supposed to do
0:14:36 > 0:14:39and I like it.
0:14:39 > 0:14:45MUSIC: Something About You by Dave Edmunds
0:14:49 > 0:14:53This flat might not be flashy but sometimes the layout just works.
0:14:53 > 0:14:56This place is light and it has plenty of period features.
0:14:56 > 0:15:00OK, there is work to be done - there's no central heating
0:15:00 > 0:15:03and I would be looking to replace the bathroom and the kitchen,
0:15:03 > 0:15:07but those are relatively straightforward modernisation jobs.
0:15:07 > 0:15:10So renovating this place should be a piece of cake, then.
0:15:10 > 0:15:13Well...not so fast,
0:15:13 > 0:15:17I think I've found something.
0:15:19 > 0:15:24So here's the second bedroom at the front here and it's not massive.
0:15:24 > 0:15:27That's not the issue. It's got some interesting coloured
0:15:27 > 0:15:30paintwork on the walls, that's not the issue.
0:15:31 > 0:15:36A very, very bouncy floor is the issue and,
0:15:36 > 0:15:42I'm afraid, it gets worse as you get to this edge here.
0:15:42 > 0:15:44And if you notice...
0:15:44 > 0:15:45HE LAUGHS
0:15:45 > 0:15:48..for some reason
0:15:48 > 0:15:52we have a suspended floor above the height of the rest of the floor
0:15:52 > 0:15:55in the property.
0:15:55 > 0:16:00Now, what could have caused this? What could this be covering up?
0:16:00 > 0:16:03Why has somebody done this and gone to a lot of trouble?
0:16:03 > 0:16:05It could be the floorboards underneath were all shot,
0:16:05 > 0:16:07it could be the joists were shot
0:16:07 > 0:16:10and the easiest solution was just to lay something else on the top.
0:16:10 > 0:16:13The reality is, I don't know
0:16:13 > 0:16:15and whoever bought this place
0:16:15 > 0:16:19really needs to check it out first because it could be a problem.
0:16:19 > 0:16:23Well, it's obviously a problem but it could be a big problem.
0:16:23 > 0:16:30MUSIC: I Feel the Earth Move by Martika
0:16:31 > 0:16:33That floor needs to be sorted.
0:16:33 > 0:16:35At best, it's a trip hazard
0:16:35 > 0:16:39and, at worst, it could be hiding structural problems.
0:16:39 > 0:16:42On a more positive note, although the communal area is a bit tired,
0:16:42 > 0:16:46it's clean and the communal garden is very well maintained.
0:16:46 > 0:16:50What does a local estate agent make of this two-bedroom flat?
0:16:53 > 0:16:58The flat itself, being 1930s, has many features including fireplaces,
0:16:58 > 0:17:01two of which, one in the lounge, one in the bedroom, superb.
0:17:01 > 0:17:03The exterior of the building as well has features
0:17:03 > 0:17:06that indicate that sort of age.
0:17:06 > 0:17:09What I would do first is modernise the kitchen, put a new boiler in.
0:17:09 > 0:17:12The bathroom certainly needs attention.
0:17:12 > 0:17:14That said, I would certainly try
0:17:14 > 0:17:17and keep the main 1930s' features that are in here.
0:17:17 > 0:17:19So the guide price of between
0:17:19 > 0:17:22£210,000 and £220,000 -
0:17:22 > 0:17:25do the figures stack-up?
0:17:25 > 0:17:29Once renovated, with a new kitchen, bathroom and completely decorated,
0:17:29 > 0:17:32this flat should be able to achieve
0:17:32 > 0:17:35£250,000-£255,000.
0:17:35 > 0:17:38With a guide of 220,000, the time you pay
0:17:38 > 0:17:41for renovation, plus taxes and fees,
0:17:41 > 0:17:44there's not a lot of wiggle room to make a profit,
0:17:44 > 0:17:46so you'd have to be careful what you pay at auction.
0:17:46 > 0:17:49What about rental?
0:17:49 > 0:17:52The rental value of this property, once renovated, would be
0:17:52 > 0:17:56between £1,000 and £1,100 per calendar month.
0:17:57 > 0:18:00Well, apart from that unquantified problem with the floor in the
0:18:00 > 0:18:04smaller bedroom, I actually think there's a lot going for this flat.
0:18:04 > 0:18:08It's not too much money for London, good transport links.
0:18:08 > 0:18:09Yeah, interesting one to go for.
0:18:09 > 0:18:12Let's see who agreed when it went under the hammer.
0:18:15 > 0:18:17London N20, nice part of the world.
0:18:17 > 0:18:20It looks like a nice block, doesn't it?
0:18:20 > 0:18:21Start me at 190, please.
0:18:21 > 0:18:25On the hour 190. 195 anywhere? Nice area.
0:18:25 > 0:18:27195 there, saw you there.
0:18:27 > 0:18:29195 there. 200.
0:18:29 > 0:18:32205.
0:18:32 > 0:18:35And 5 and 10?
0:18:35 > 0:18:38210 and 15.
0:18:38 > 0:18:39OK, 12.5, I'll take, why not?
0:18:39 > 0:18:41215, then, from you?
0:18:41 > 0:18:45215 I'm bid. 17.5?
0:18:45 > 0:18:49No. OK, I've got 215, gentleman on the aisle. It's going to sell.
0:18:49 > 0:18:51First time at 215,
0:18:51 > 0:18:54second time at 215,
0:18:54 > 0:18:56third and last time at 215.
0:18:56 > 0:19:00Well done, sir, 215.
0:19:00 > 0:19:03In from start to finish was the successful bidder,
0:19:03 > 0:19:05estate agent Adnan.
0:19:05 > 0:19:11MUSIC: He's On The Phone by St Etienne
0:19:11 > 0:19:14Having bought the property for 215,000,
0:19:14 > 0:19:17I met up with him to find out his plans.
0:19:17 > 0:19:19Adnan, good to meet you.
0:19:19 > 0:19:21- Good to meet you. - Congratulations.- Thank you.
0:19:21 > 0:19:24Tell me why you wanted to buy this flat.
0:19:24 > 0:19:27Well, it's a first project for myself.
0:19:27 > 0:19:32I wanted to start a small portfolio of buying and selling.
0:19:32 > 0:19:35So I know you're an estate agent, I'm sure that helps.
0:19:35 > 0:19:39That helps to an extent and I've managed property before,
0:19:39 > 0:19:44so all being well, this should not be such a hard move.
0:19:44 > 0:19:47So how did you choose your first property,
0:19:47 > 0:19:49what attracted you to this flat?
0:19:49 > 0:19:56The area and, basically, it's small enough for me to purchase.
0:19:56 > 0:20:00I thought there was quite a good potential to turn it around.
0:20:00 > 0:20:03A little bit of work needed doing on it,
0:20:03 > 0:20:06not too much, as far as I can tell.
0:20:06 > 0:20:09I'm not sure that I agree there's not too much work to do
0:20:09 > 0:20:13but the other thing I never agree with is not viewing before you buy
0:20:13 > 0:20:16and Adnan didn't.
0:20:16 > 0:20:20We had access outside, obviously, and pictures.
0:20:20 > 0:20:22So having not seen it inside before you bought it then,
0:20:22 > 0:20:24what was it like when you walked through the door?
0:20:24 > 0:20:27Not too much of a shock, it could have been worse.
0:20:27 > 0:20:28We knew that it was an old flat
0:20:28 > 0:20:32and hadn't been renovated in some years and so we did know
0:20:32 > 0:20:35that there was going to be a complete strip down of everything.
0:20:35 > 0:20:38- The only thing is, in the other room there's a raised floor... - Yes, I saw it.
0:20:38 > 0:20:41..and so I'll have to get below that and see what the problem is
0:20:41 > 0:20:44and rectify that.
0:20:44 > 0:20:49MUSIC: Over And Over by Hot Chip
0:20:49 > 0:20:52Well, Adnan's not fazed at all, even by that bouncy floor.
0:20:52 > 0:20:55He's very laid-back about it all so far,
0:20:55 > 0:20:58so is he equally laid back about the finances?
0:21:00 > 0:21:05I want to spend between £7-£10,000.
0:21:05 > 0:21:08There is a contingency to go over
0:21:08 > 0:21:12but I don't want to go much over that, in order to keep a profit.
0:21:12 > 0:21:15A budget of seven to ten, including the central heating
0:21:15 > 0:21:16and the kitchen and bathroom...
0:21:16 > 0:21:20- That's going to be tight, isn't it?- It is, kind of.
0:21:20 > 0:21:23- What do you mean?- The central heating has cost me, roughly,
0:21:23 > 0:21:28as per the quote, about 3,000 for the central heating.
0:21:28 > 0:21:29Right.
0:21:29 > 0:21:32The kitchen and bathroom will cost me about three or four grand.
0:21:32 > 0:21:37But then, I expect to go over by a couple of grand but not much.
0:21:37 > 0:21:41- I do want to keep it as close to ten as I can.- Yeah, yeah.
0:21:41 > 0:21:44- So fingers crossed that's what we do.- And what's the timescale?
0:21:44 > 0:21:46- A month.- A month, all right, OK, wow.
0:21:46 > 0:21:47A month, or two maximum.
0:21:47 > 0:21:49I want to get the builders in straight away
0:21:49 > 0:21:53and get the major work done and then I'll step in
0:21:53 > 0:21:55and start renovating and painting and doing what I can as well.
0:21:55 > 0:21:58Oh, great, so you're going to be hands on?
0:21:58 > 0:22:01Yes, I've got a few friends available and so, you know,
0:22:01 > 0:22:05it'll be a joint effort but it'll be fun.
0:22:05 > 0:22:10Adnan's an estate agent so he knows the top price for this property
0:22:10 > 0:22:12and what buyers expect for it.
0:22:12 > 0:22:14But I do worry about that tight budget.
0:22:14 > 0:22:18- Was he happy with what he paid? - Yeah, pretty much, definitely.
0:22:18 > 0:22:22You know, if I can get 240/250 for the flat,
0:22:22 > 0:22:24hopefully that should, you know, be quite a tidy profit.
0:22:24 > 0:22:28Yeah, brilliant. Well, listen, congratulations, good luck with it.
0:22:28 > 0:22:31- I look forward to seeing how you get on.- Excellent, thank you very much.
0:22:31 > 0:22:36Well, an interesting little property for Adnan's first purchase,
0:22:36 > 0:22:40although I am a little bit worried about that budget.
0:22:40 > 0:22:45What horrors might there be lurking underneath that floor?
0:22:47 > 0:22:50You can find out later in the show.
0:22:50 > 0:22:52Still to come, it's time for me
0:22:52 > 0:22:55to get strict with this developer in Wishaw.
0:22:55 > 0:22:58How long do you think it's going to take you to renovate?
0:22:58 > 0:23:00Don't be giving me, "I don't know."
0:23:02 > 0:23:06And in Whetstone, London, has Adnan learned a few lessons?
0:23:06 > 0:23:09Try and do as much homework as you can before buying.
0:23:15 > 0:23:18Time now to return to Matlock in Derbyshire,
0:23:18 > 0:23:22where I was looking at this converted 16th-century chapel,
0:23:22 > 0:23:24guided at £95,000.
0:23:24 > 0:23:28It may have been a little bit nippy inside, with just a wood burner
0:23:28 > 0:23:32for heating, but it made great use of limited space.
0:23:32 > 0:23:35And if you wanted a real treat, all you had to do was look up.
0:23:35 > 0:23:43MUSIC: You're Living Above Your Head by Jay and the Americans
0:23:48 > 0:23:49And something was wrong,
0:23:49 > 0:23:52there were patches of damp throughout the building.
0:23:52 > 0:23:55I just hoped it wasn't symptomatic of a bigger problem.
0:23:55 > 0:23:58However, buyer Mary's spirits weren't dampened
0:23:58 > 0:24:02and buying the property for £109,000 made a lot of sense,
0:24:02 > 0:24:04since she owns some surrounding land
0:24:04 > 0:24:07and lives next door with her partner Stuart, a builder.
0:24:07 > 0:24:10The only thing about this conversion was planning restrictions meant
0:24:10 > 0:24:12it could only be a holiday let,
0:24:12 > 0:24:15which meant Mary was a lady in a hurry.
0:24:15 > 0:24:18We wanted to just do the inside and then, obviously, doing
0:24:18 > 0:24:21the roof is going to take slightly longer now.
0:24:21 > 0:24:25But we're looking at two to three months. If not, it'll be another
0:24:25 > 0:24:28season before we can get it onto the holiday let market.
0:24:31 > 0:24:35Mary had a very reasonable budget of £5-£7000,
0:24:35 > 0:24:38especially as partner Stuart was doing the building work.
0:24:38 > 0:24:39But she would have to work quickly
0:24:39 > 0:24:42if she wanted to catch that key peak-rate period.
0:24:42 > 0:24:46Would Mary and Stuart get finished in time?
0:24:50 > 0:24:53MUSIC: Time To Pretend by MGMT
0:24:53 > 0:24:56Well, just over four months later we've returned to find out.
0:24:56 > 0:25:01MUSIC: Time to Pretend by MGMT
0:25:10 > 0:25:14What was already a beautiful building has been given a new lease of life.
0:25:14 > 0:25:15The new kitchen looks great,
0:25:15 > 0:25:18as does the new furniture throughout the house...
0:25:20 > 0:25:23..whilst the bathroom has been tiled and painted.
0:25:23 > 0:25:27The whole building has new carpets and all the woodwork's
0:25:27 > 0:25:31been stripped back, treated for woodworm and refinished.
0:25:31 > 0:25:35But that's not the only thing that's happened to the roof.
0:25:35 > 0:25:38We were hoping to leave the roof till later
0:25:38 > 0:25:40but when we came inside and we saw
0:25:40 > 0:25:43that one of the main beams was leaking, we decided that,
0:25:43 > 0:25:46in the scheme of things, it would be better to get the roof done.
0:25:46 > 0:25:49Well, we had to take the old stone roof off,
0:25:49 > 0:25:53which had to be cut off because when they went to take it off, it had
0:25:53 > 0:25:57been sprayed with a foam filler, which had to then be cut off.
0:25:57 > 0:26:00So he, literally, had to cut all the tiles off.
0:26:00 > 0:26:02As well as the new roof tiles,
0:26:02 > 0:26:05Mary's partner Stuart fitted modern insulation
0:26:05 > 0:26:09and new roof beams, but fitted them above the original ceiling.
0:26:09 > 0:26:13This allowed him to keep the original beams in place and gives the chapel
0:26:13 > 0:26:17all the advantages of a modern roof but retains its period features.
0:26:17 > 0:26:20Those old roof stones didn't go to waste.
0:26:20 > 0:26:23Yes, some of the old tiles have actually gone
0:26:23 > 0:26:25into the new patio area at the front and then we're going to,
0:26:25 > 0:26:28hopefully, build another patio area at the side,
0:26:28 > 0:26:30which obviously hasn't happened yet.
0:26:30 > 0:26:33But some of them will be used there as well, so that we'll keep
0:26:33 > 0:26:36the character of the whole building, hopefully.
0:26:36 > 0:26:40MUSIC: Don't Throw It All Away by Gary Benson
0:26:40 > 0:26:43I think it's brilliant that Mary's remembered to keep one eye
0:26:43 > 0:26:46on retaining the building's character throughout this
0:26:46 > 0:26:49whole project, as that's what makes it so special.
0:26:49 > 0:26:52These things can be easy to forget, especially
0:26:52 > 0:26:54when other problems are springing up.
0:26:54 > 0:26:58We did have an electrician out and we've had a new box and
0:26:58 > 0:27:02everything in and it's all been rewired, new lighting.
0:27:02 > 0:27:05We didn't know until we went into it
0:27:05 > 0:27:09but I fully understand it's got to be done, it needs to be right.
0:27:09 > 0:27:12Mary's spot on there, electrics have to be checked
0:27:12 > 0:27:15and certified by professionals and it doesn't matter
0:27:15 > 0:27:18if you're renting for a long period or for holiday lets,
0:27:18 > 0:27:22it has to be a case of safety first.
0:27:22 > 0:27:24So, with all these unexpected jobs,
0:27:24 > 0:27:27what happened to the £5-£7,000 budget?
0:27:27 > 0:27:31In total, we've spent about £17,000
0:27:31 > 0:27:33doing the whole of the building, inside and out.
0:27:33 > 0:27:36The roof was the problem, obviously.
0:27:36 > 0:27:39We spent about £6,000 on the roof.
0:27:39 > 0:27:43The electricals and the furnishings, obviously,
0:27:43 > 0:27:46were all added on to what we originally budgeted for.
0:27:48 > 0:27:53Ouch. That's significantly more than they'd prepared for.
0:27:53 > 0:27:56But Mary and partner Stuart could start making some of that money back
0:27:56 > 0:28:00if they finished in time to start taking bookings for the high season.
0:28:00 > 0:28:03Have they made it?
0:28:03 > 0:28:05Yeah, we've just slightly over run
0:28:05 > 0:28:08but mainly because of the roof, which we weren't planning on doing.
0:28:08 > 0:28:13But it's fine, we've got it ready for the, sort of, late spring/summer
0:28:13 > 0:28:16which is when we were hoping to be ready anyway.
0:28:16 > 0:28:20MUSIC: All in Good Time by Ron Sexsmith
0:28:29 > 0:28:33Yes, it's taken Mary four-and-a-half months and £17,000,
0:28:33 > 0:28:36but finally the old chapel is ready to start taking bookings.
0:28:36 > 0:28:40But with all those problems, are Stuart and his team of builders
0:28:40 > 0:28:43still glad they took it on?
0:28:43 > 0:28:47I'll answer that without swearing, shall I?
0:28:47 > 0:28:50Yeah, no, he's been very good. They've all been very good.
0:28:50 > 0:28:52Obviously, it's been a lot of work,
0:28:52 > 0:28:55a lot more than we thought it would be. But, yeah, we've enjoyed it
0:28:55 > 0:28:59and hopefully we'll soon be able to see the benefits from it.
0:28:59 > 0:29:02Well, let's see if two local estate agents agree.
0:29:02 > 0:29:04Mary bought the property for £109,000
0:29:04 > 0:29:07and spent £17,000 on renovation.
0:29:07 > 0:29:11Are they as impressed with the old chapel as I am?
0:29:11 > 0:29:15From my initial visit, it seems to me a bit more light and airy,
0:29:15 > 0:29:20tastefully decorated, nice quality fitted kitchen
0:29:20 > 0:29:22and, overall, very pleasing.
0:29:22 > 0:29:25The property is a beautiful cottage,
0:29:25 > 0:29:29very nicely refurbished, outstanding views,
0:29:29 > 0:29:33lovely idyllic country spot.
0:29:33 > 0:29:38Both agents gave the property a resale valuation of £140,000,
0:29:38 > 0:29:41which would give Mary a profit of 14 grand,
0:29:41 > 0:29:43minus the usual taxes and expenses.
0:29:43 > 0:29:46However, this property has to be used as a holiday let
0:29:46 > 0:29:48and that's what Mary plans to do.
0:29:48 > 0:29:50So what about those rates?
0:29:50 > 0:29:53In the low season, I would feel, it would probably achieve in the region
0:29:53 > 0:29:55of £250 per week.
0:29:55 > 0:30:00In the high season it would probably get in the region of £450 per week.
0:30:00 > 0:30:04The weekly rental value for the property on low season would be
0:30:04 > 0:30:05in the region of £325 per week,
0:30:05 > 0:30:11high season up to £450, possibly £475 per week.
0:30:11 > 0:30:15Yeah, we've not actually gone into the prices of it yet, so...
0:30:15 > 0:30:18It's all new to me anyway, but, yeah, it sounds good.
0:30:18 > 0:30:22Well, it may all be new to Mary but I reckon she's done well here.
0:30:22 > 0:30:25So calculator at the ready, let's take the summer months
0:30:25 > 0:30:29of June, July and August, that could mean an income of...
0:30:29 > 0:30:30erm...
0:30:30 > 0:30:34£5,700, just for that period.
0:30:34 > 0:30:37And that's before you add in other high season spells like Easter,
0:30:37 > 0:30:40the October break, Christmas.
0:30:40 > 0:30:44It's also worth bearing in mind that holiday lets have tax advantages.
0:30:44 > 0:30:48For instance, if a furnished holiday let is occupied for at least
0:30:48 > 0:30:5370 days with a few other provisos, it may attract capital gains breaks.
0:30:53 > 0:30:57I think this is a great property and a very smart development.
0:30:57 > 0:31:00But what does Mary think of the finished project?
0:31:00 > 0:31:02I think now it's all completed, I've seen it
0:31:02 > 0:31:05and obviously as each room's gone on, you can see it progressing
0:31:05 > 0:31:08but now that it's all done, you can walk in and think,
0:31:08 > 0:31:11"Yeah, that's nice." Yes.
0:31:14 > 0:31:18We're heading off to Scotland now, a town 15 miles from Glasgow.
0:31:18 > 0:31:21What do you look for when choosing where to live?
0:31:21 > 0:31:25Wishaw in North Lanarkshire ticks a lot of boxes.
0:31:25 > 0:31:28If you're looking for a train station, Wishaw has got one.
0:31:28 > 0:31:31Shops? Yep, they're here too.
0:31:31 > 0:31:35Beautiful countryside, well, look, it's right on your doorstep
0:31:35 > 0:31:38and it's even got its own hospital, leisure facilities
0:31:38 > 0:31:41and easy access to the motorway.
0:31:41 > 0:31:49MUSIC: Wishing Well by Terence Trent D'Arby
0:31:50 > 0:31:53The towns of Wishaw and nearby Motherwell
0:31:53 > 0:31:55used to flank Ravenscraig steelworks,
0:31:55 > 0:31:59which, at its peak, was the biggest steel producer in Scotland.
0:31:59 > 0:32:03Will the house I'm going to look at today be a steal
0:32:03 > 0:32:07or will I be wishing I'd never set eyes on it?
0:32:07 > 0:32:12So what did a town that can offer so much offer up at auction?
0:32:12 > 0:32:17Well, a three-bedroom semidetached with a guide price of £40,000.
0:32:17 > 0:32:19Sounds tempting, right? But wait.
0:32:19 > 0:32:22That is because there's one other thing,
0:32:22 > 0:32:26it comes with a caution that says in the catalogue,
0:32:26 > 0:32:29"This property is classified as unsafe
0:32:29 > 0:32:34"and uninhabitable in its current condition and it's sold as seen."
0:32:34 > 0:32:36That's a bit worrying.
0:32:41 > 0:32:42Wish me luck.
0:32:46 > 0:32:48COUGHING
0:32:48 > 0:32:51Yes, I can totally agree.
0:32:51 > 0:32:54This house is uninhabitable as it currently stands,
0:32:54 > 0:32:57there's wiring hanging out, the ceiling's caved in,
0:32:57 > 0:33:00it really does smell.
0:33:00 > 0:33:02I'm certainly not going in there today.
0:33:02 > 0:33:06Who's going to be brave enough to want to buy this sold as seen?
0:33:06 > 0:33:08Good luck to that person.
0:33:08 > 0:33:10I'm going to explore round the back.
0:33:13 > 0:33:15So this is the side of the property.
0:33:15 > 0:33:16Now, I'm saying going round the back
0:33:16 > 0:33:19but I mean, actually, going round the front
0:33:19 > 0:33:22because everybody who lives here has told me they use that as the front
0:33:22 > 0:33:24but this is actually the front.
0:33:24 > 0:33:27What I do like is all this space, look, lots of storage
0:33:27 > 0:33:29to the side here and, wow!
0:33:29 > 0:33:34This is so much more impressive than what I first thought.
0:33:34 > 0:33:36So this officially is the front,
0:33:36 > 0:33:38although everybody else uses the back.
0:33:38 > 0:33:42I mean, look at this, you've got quite a grand little staircase here.
0:33:42 > 0:33:45I mean, it's boarded up for obvious reasons.
0:33:45 > 0:33:48It's such a shame because I would have loved to have got inside.
0:33:48 > 0:33:51It's got a really nice front garden.
0:33:51 > 0:33:55But the best bit, when you stand at the top here, you have got
0:33:55 > 0:34:00the most cracking view of beautiful green parkland over there, amazing.
0:34:03 > 0:34:06Well, this really is a great location for an urban property
0:34:06 > 0:34:10and it's certainly a much-needed boost, given the state
0:34:10 > 0:34:14of the house, which does look as though it's been sorely neglected.
0:34:14 > 0:34:17Whoever buys this, let's hope they chop this hedge back
0:34:17 > 0:34:21because what it's doing is hindering this fabulous view.
0:34:21 > 0:34:24I know I keep going on about it, but check it out, look at this!
0:34:24 > 0:34:26And for the guide price, it seems like you might be getting
0:34:26 > 0:34:28a bit of a bargain.
0:34:28 > 0:34:33Although, there's something really playing on my mind with this house.
0:34:33 > 0:34:36You know, when something seems too good to be true,
0:34:36 > 0:34:38well, it usually is.
0:34:38 > 0:34:40There are two issues with this house.
0:34:40 > 0:34:43First, fairly obviously, the dangerous state of it inside
0:34:43 > 0:34:46and that's due to a flow of water that's been leaking
0:34:46 > 0:34:50through the house towards the front door for some time now.
0:34:50 > 0:34:55MUSIC: Cry Me A River
0:35:05 > 0:35:07And the second issue...
0:35:07 > 0:35:11This house, well, it just isn't what it seems.
0:35:11 > 0:35:14It's a house of non-standard construction,
0:35:14 > 0:35:17which means you may struggle to get a mortgage here.
0:35:17 > 0:35:21With thousands of people coming back after the Second World War,
0:35:21 > 0:35:25these houses, they needed to be built and built fast.
0:35:25 > 0:35:29These "Homes for Heroes" were constructed with whatever material
0:35:29 > 0:35:31the country could get its hands on.
0:35:31 > 0:35:35They were only supposed to have a lifespan of 30-40 years,
0:35:35 > 0:35:36but many, like this one
0:35:36 > 0:35:41and the rest on the estate in Wishaw, have lasted way beyond that.
0:35:41 > 0:35:45Now, despite its steel frame and a steel roof,
0:35:45 > 0:35:49they are sturdy houses and people are really happy living here.
0:35:49 > 0:35:52You can see the one next door is in such good condition.
0:35:52 > 0:35:56And they are very much in demand, especially in the rental market.
0:36:00 > 0:36:03So this house might be a challenge, it could become a money-pit.
0:36:03 > 0:36:07On the other hand, it's got great views and it could rent easily.
0:36:07 > 0:36:09Then again, it's non-standard construction,
0:36:09 > 0:36:11so you might have trouble finding a buyer
0:36:11 > 0:36:13if you were looking to sell on.
0:36:13 > 0:36:18I think it's time we asked a local estate agent to help us.
0:36:18 > 0:36:24MUSIC: Both Sides of The Story by Phil Collins
0:36:26 > 0:36:29This would be a very popular rental property.
0:36:29 > 0:36:31Wishaw's quite a vibrant town, good commuting links
0:36:31 > 0:36:33to Glasgow and Edinburgh.
0:36:33 > 0:36:36The hospital is one of the biggest employers in the area and,
0:36:36 > 0:36:40obviously, a lot of the employees at the hospital want to live in Wishaw.
0:36:40 > 0:36:43So would that high rental demand in the area
0:36:43 > 0:36:46translate into a good yield?
0:36:46 > 0:36:51Once renovated, this property would achieve £475 per calendar month.
0:36:51 > 0:36:53So if you could buy the property for anything close to that
0:36:53 > 0:36:56guide price, there's a real potential for profit.
0:36:56 > 0:36:59But what about the sale price?
0:36:59 > 0:37:01When this property's been refurbished,
0:37:01 > 0:37:04it could achieve £55,000.
0:37:04 > 0:37:06That's not such good news.
0:37:06 > 0:37:10If you want profit, that valuation doesn't give a potential buyer
0:37:10 > 0:37:14much budget to make improvements and this property needs improving.
0:37:14 > 0:37:17So, why so low?
0:37:17 > 0:37:20The property itself is a non-standard construction.
0:37:20 > 0:37:23Therefore, that will have an effect on raising a mortgage against it
0:37:23 > 0:37:27and that will affect the future sale of the property.
0:37:27 > 0:37:30Well, internally this house certainly is in a sorry old state
0:37:30 > 0:37:33and I hope the person who buys this knows that.
0:37:33 > 0:37:38But if this does go for anything around the £40,000 guide price,
0:37:38 > 0:37:41the rental returns could really pay off.
0:37:41 > 0:37:45Let's not forget, that wonderful parkland it's surrounded by.
0:37:45 > 0:37:48Let's see who wanted this when it went under the hammer.
0:37:49 > 0:37:52Plot number 12.1,
0:37:52 > 0:37:55rarely available three-bedroom semidetached villa.
0:37:56 > 0:37:58Developer opportunity.
0:37:58 > 0:38:01At £40,000, am I bid? 30 then?
0:38:01 > 0:38:04I'll move on, 30 here. At 30 I'm bid now.
0:38:04 > 0:38:08At 31 here, 32, 33.
0:38:08 > 0:38:13With you at 32. At £32,000, cheap house, first time.
0:38:13 > 0:38:1532, second time.
0:38:15 > 0:38:18Are we finished? New bidder at 33.
0:38:18 > 0:38:2234, 35, 36, 37.
0:38:22 > 0:38:2637, 38, 39, 40.
0:38:26 > 0:38:31One, two, three, four, five.
0:38:31 > 0:38:33You're out.
0:38:33 > 0:38:37At £44,000 then, with you, against you and against you.
0:38:37 > 0:38:40First time, second time, third and final time.
0:38:40 > 0:38:42If you're all done and out.
0:38:42 > 0:38:44Well done, sir.
0:38:44 > 0:38:47Can I have your panel number, please?
0:38:47 > 0:38:54The house was sold for just £44,000 to 21-year-old Chris.
0:38:54 > 0:38:56I went along to meet him to find out
0:38:56 > 0:38:59what his plans were for this ailing property.
0:39:00 > 0:39:04- Chris, congratulations.- Cheers. - You must be really pleased.- Yeah.
0:39:04 > 0:39:06So what's the story behind you wanting to buy this?
0:39:06 > 0:39:10Is this a family effort or is this solely your own property?
0:39:10 > 0:39:13No, it's a family effort, just trying to diversify.
0:39:13 > 0:39:14So is this a new venture for you?
0:39:14 > 0:39:17Is this something you've been thinking about doing
0:39:17 > 0:39:19and this is your first opportunity?
0:39:19 > 0:39:21We've got a few properties but we've only decided to do this
0:39:21 > 0:39:23over the past year,
0:39:23 > 0:39:25probably should have done it earlier.
0:39:25 > 0:39:28So, Chris, tell me, what was it like for you on auction day
0:39:28 > 0:39:31because I know you really wanted this house because all of your sums
0:39:31 > 0:39:32and your figures worked out.
0:39:32 > 0:39:34Were you desperate to get this?
0:39:34 > 0:39:37It's one of those things, if I don't get it, I don't get it.
0:39:37 > 0:39:40Well, that's a very relaxed attitude.
0:39:40 > 0:39:44So how does Chris feel about paying 44 grand for a house that's
0:39:44 > 0:39:46non-standard construction.
0:39:46 > 0:39:49It doesn't matter how it's built for us.
0:39:49 > 0:39:52I know how much it's going to cost per month,
0:39:52 > 0:39:54how much it's going to bring in to ourselves.
0:39:54 > 0:39:57It's a three bedroom house and we got it for £44,000
0:39:57 > 0:39:59so we can't really argue with that.
0:39:59 > 0:40:03- You've obviously purely bought this as a rental exercise.- Yep.
0:40:03 > 0:40:05So, come on then, tell me roughly,
0:40:05 > 0:40:07what can you get per month for something like this?
0:40:07 > 0:40:11- We're looking at £450 per month.- So that is quite an incredible yield.
0:40:11 > 0:40:13Now have you worked out the sums?
0:40:13 > 0:40:15I mean, how long is it going to take you to pay off this house?
0:40:15 > 0:40:19About ten years, depending on how much repair we need to do it.
0:40:19 > 0:40:22It's not in the best of conditions but it'll make its money eventually.
0:40:22 > 0:40:25No, no, no, right, let's go back.
0:40:25 > 0:40:28It's not in the best of conditions, we can't even go in there today.
0:40:28 > 0:40:30It's in a right old state.
0:40:30 > 0:40:33- Now, did you view the property prior to auction?- Unfortunately not...
0:40:33 > 0:40:34What?!
0:40:34 > 0:40:38..before I saw the auction, the dates to go
0:40:38 > 0:40:40and look at the house were gone.
0:40:40 > 0:40:43But a three-bedroom house for this price,
0:40:43 > 0:40:46you can't argue with it really.
0:40:46 > 0:40:50OK, it's £44,000 but you're going to need to spend some money on it
0:40:50 > 0:40:52to get it up to your next-door neighbour's standard.
0:40:52 > 0:40:56I mean, how much are you going to need to spend in there to get it habitable?
0:40:56 > 0:41:01Not really sure, we'll need to assess how much damage is caused inside.
0:41:01 > 0:41:04We're going to have to spend what we need to spend.
0:41:04 > 0:41:09MUSIC: That's Just The Way It Is by Bruce Hornsby And The Range
0:41:09 > 0:41:12Well, Chris is probably right, it is what it is.
0:41:12 > 0:41:14And while Chris may seem very laid-back,
0:41:14 > 0:41:16I reckon that since his family run a company
0:41:16 > 0:41:20that act as a European distributor for Japanese foundry machinery,
0:41:20 > 0:41:24they clearly know a good business proposition when they see one.
0:41:24 > 0:41:28But in saying he'll spend what he needs to, well, what does he mean?
0:41:28 > 0:41:31So, what, have you just got an endless flow of money to
0:41:31 > 0:41:33support this house project?
0:41:33 > 0:41:34No, it's not an endless flow
0:41:34 > 0:41:38but I need to spend what I need to spend in order to
0:41:38 > 0:41:40get that right to rent.
0:41:40 > 0:41:43- Do you think you'll rent this quite quickly?- Aye.
0:41:43 > 0:41:46I spoke to a few of the neighbours and they all said...
0:41:46 > 0:41:48They're really nice, all the neighbours are really nice.
0:41:48 > 0:41:51It's just a shame about how this is dragging down the area.
0:41:51 > 0:41:54Yeah, it is a shame but now you've come along
0:41:54 > 0:41:56and it's fallen into the lap of Chris, hooray,
0:41:56 > 0:41:58who's going to turn it around.
0:41:58 > 0:42:01So what are you most excited about with this project?
0:42:01 > 0:42:04Just seeing what it's going to be like when it's finished.
0:42:04 > 0:42:07I'd like it to be the same as the house next door.
0:42:07 > 0:42:09So it might have to be a new roughcast job
0:42:09 > 0:42:12- but we'll see how much it would cost.- You could always paint it...
0:42:12 > 0:42:15- A nicer colour...- ..and have a really nice, soft, muted tone...
0:42:15 > 0:42:17Aye, subtle colours.
0:42:17 > 0:42:20..I think would look better than the mustard yellow and the brown.
0:42:20 > 0:42:23Aye, it looks like a bit of toast.
0:42:23 > 0:42:26Property development's quite a change from the usual
0:42:26 > 0:42:29family business in engineering equipment, where Chris, his dad
0:42:29 > 0:42:31and his brothers are directors.
0:42:31 > 0:42:34And, although he'll continue his day job, he's taking
0:42:34 > 0:42:38charge of this renovation, so it will mean a lot of work after hours.
0:42:39 > 0:42:42I've got a feeling that that won't faze him.
0:42:42 > 0:42:45So how long does he think it's going to take?
0:42:47 > 0:42:48Don't be giving me, "I don't know."
0:42:48 > 0:42:51Because I've got no budget to go on and now I don't know
0:42:51 > 0:42:53how long it's going to take you.
0:42:53 > 0:42:55- A couple of months?- Yeah, a couple of months, we'll go for that, aye.
0:42:55 > 0:42:58- A couple of months?- Go for a couple of months.
0:42:58 > 0:43:00Chris, good luck. Good luck with this project.
0:43:00 > 0:43:03It's been so interesting meeting you and it's going to be interesting to
0:43:03 > 0:43:05find out how much you spend and how long it takes you.
0:43:05 > 0:43:08- Good luck, mate. Thank you. - Thank you.
0:43:08 > 0:43:11I have never met anybody as laid back as Chris, no budget,
0:43:11 > 0:43:13no timescale, no worries.
0:43:13 > 0:43:16But he has done his maths here.
0:43:16 > 0:43:19I'm just hoping the damage inside, well,
0:43:19 > 0:43:22it doesn't set-back his healthy return.
0:43:22 > 0:43:24You can join me later in the programme to
0:43:24 > 0:43:25find out how Chris gets on.
0:43:29 > 0:43:32So we've seen how one of our purchasers got on buying at auction.
0:43:32 > 0:43:35Yeah, it's time to see what happened to the others.
0:43:35 > 0:43:37Looking forward to this, let's find out.
0:43:38 > 0:43:40Welcome back to Whetstone in North London,
0:43:40 > 0:43:44where I looked at this two-bed first floor flat.
0:43:44 > 0:43:46There was a lot of work needing to be done
0:43:46 > 0:43:49to drag this house up to modern-day standards
0:43:49 > 0:43:52but, on the plus side, there were really nice period features,
0:43:52 > 0:43:55a good layout and nice proportions.
0:43:55 > 0:43:58And then, there was this.
0:43:58 > 0:44:01For some reason, we have a suspended floor
0:44:01 > 0:44:07above the height of the rest of the floor in the property.
0:44:07 > 0:44:12MUSIC: Smile by The Supernaturals
0:44:12 > 0:44:14Yes, nothing's ever simple.
0:44:14 > 0:44:19So what was that floor hiding and would it prove problematic?
0:44:19 > 0:44:22Well, buyer Adnan didn't even know it was there
0:44:22 > 0:44:25when he bought the property for £215,000
0:44:25 > 0:44:28as there hadn't been any viewings
0:44:28 > 0:44:31and all he wanted to do was to get stuck in.
0:44:31 > 0:44:33I want to get the builders in straight away, get the major
0:44:33 > 0:44:37work done and then I'll step in and start renovating and painting
0:44:37 > 0:44:39- and doing what I can as well. - Oh, great,
0:44:39 > 0:44:42- so you're going to be hands on. - Yeah, it'll be fun.
0:44:42 > 0:44:47What concerned me was that Adnan had given himself
0:44:47 > 0:44:49a budget of just £7-£10,000
0:44:49 > 0:44:53and a timescale of one to two months to completely refurbish the flat,
0:44:53 > 0:44:57including skimming walls, fitting a new kitchen and bathroom
0:44:57 > 0:44:59and new central heating.
0:44:59 > 0:45:01MUSIC: Money's Too Tight (To Mention) by Simply Red
0:45:01 > 0:45:03That's a lot of work.
0:45:03 > 0:45:06Would he be able to complete it on time and on budget?
0:45:11 > 0:45:14Well, four months later, we've returned to find out.
0:45:21 > 0:45:23What a transformation.
0:45:23 > 0:45:25This flat has been revitalised.
0:45:25 > 0:45:30Adnan doesn't seem to have skimped on anything, fitting a new bathroom,
0:45:30 > 0:45:34laying new carpets and having the whole flat replastered.
0:45:34 > 0:45:36But I've put it off long enough.
0:45:36 > 0:45:39What happened to the floor in that small bedroom?
0:45:41 > 0:45:43When we first bought the place,
0:45:43 > 0:45:47we realised that there was an elevated floor
0:45:47 > 0:45:52and they used it to soundproof whatever they were doing in here
0:45:52 > 0:45:55and a heck load of files and cabinets
0:45:55 > 0:45:59and stuff, which were actually bolted into the wall.
0:45:59 > 0:46:03So we had to reskim the wall, get the flooring taken out -
0:46:03 > 0:46:05I didn't do that myself -
0:46:05 > 0:46:10and redecorate, repaint and replaster the whole room.
0:46:12 > 0:46:15Now, sorting that out would still have been a lot of work.
0:46:15 > 0:46:18But honestly, the realisation that the false floor was being
0:46:18 > 0:46:20used as sound insulation,
0:46:20 > 0:46:23rather than to hide structural problems
0:46:23 > 0:46:25must have been a huge relief.
0:46:25 > 0:46:27But as ever with developments,
0:46:27 > 0:46:30there are always unforeseen obstacles and delays.
0:46:32 > 0:46:37In the kitchen, which was in serious disrepair when we got the place,
0:46:37 > 0:46:40that was a whole rework.
0:46:40 > 0:46:43We had to install a boiler because there was no central heating
0:46:43 > 0:46:45in there before.
0:46:45 > 0:46:49So that took the best part of two weeks, instead of one week.
0:46:49 > 0:46:52One of the windows in the kitchen just wasn't very nice,
0:46:52 > 0:46:54so we had to get it replaced.
0:46:54 > 0:46:59We found a local supplier and fitter who managed to do it
0:46:59 > 0:47:03in a good timescale
0:47:03 > 0:47:06and not too expensive as well.
0:47:06 > 0:47:09MUSIC: Smooth by Santana ft Rob Thomas
0:47:09 > 0:47:12I think replacing that window is yet another example of what
0:47:12 > 0:47:15a thorough job Adnan's done.
0:47:15 > 0:47:16He's an estate agent by profession,
0:47:16 > 0:47:19but this is the first development he's taken on himself
0:47:19 > 0:47:22and while he employed professionals to fit the kitchen,
0:47:22 > 0:47:26bathroom and central heating, he did much of the other work himself.
0:47:26 > 0:47:28So how did he find it all?
0:47:30 > 0:47:34Weekends were always, you know, spent here,
0:47:34 > 0:47:37nine o'clock in the morning till whatever time in the evening.
0:47:37 > 0:47:41I had a hand from a couple of friends, here and there,
0:47:41 > 0:47:44so that did help, obviously, there were people on hand.
0:47:44 > 0:47:48But it was a good experience.
0:47:48 > 0:47:51It did run pretty smoothly
0:47:51 > 0:47:55and we got the work done within two/two-and-a-half months.
0:47:55 > 0:47:59MUSIC: Smooth by Santana ft Rob Thomas
0:47:59 > 0:48:03So it took Adnan a little longer than he'd hoped
0:48:03 > 0:48:06but it was the finances I'd be more concerned about.
0:48:06 > 0:48:10Did he manage to keep to that £7-£10,000 budget?
0:48:11 > 0:48:14Ten grand was the most I wanted to spend
0:48:14 > 0:48:19and I ended up a couple of hundred pounds short of £10,000.
0:48:19 > 0:48:24So, yeah, we've managed to keep in budget for the property.
0:48:24 > 0:48:28I have to say, I'm impressed, he's done a lot for the money.
0:48:28 > 0:48:31We asked along two local estate agents to tell us
0:48:31 > 0:48:35what they thought of Adnan's first solo project.
0:48:37 > 0:48:39It's been finished to a good standard, you can
0:48:39 > 0:48:43see the builders have come in and done some good work on the property.
0:48:43 > 0:48:46It's nice, bright, airy. It's a good size flat.
0:48:46 > 0:48:50This particular property would appeal to a wide range of buyers.
0:48:50 > 0:48:53From first-time buyers, investors and people looking to downsize.
0:48:53 > 0:48:57It's a well presented flat with pleasing layout and a
0:48:57 > 0:49:01house-like quality which appeals and gives the place a nice vibe.
0:49:01 > 0:49:05So having bought the flat for 215,000 at auction
0:49:05 > 0:49:08and spent just under 10,000 on the development,
0:49:08 > 0:49:10can Adnan expect to make a profit
0:49:10 > 0:49:13on this, his first solo development?
0:49:15 > 0:49:17I think in the current market,
0:49:17 > 0:49:20you could sell this property for approximately £265,000.
0:49:20 > 0:49:24I'd bring this property to the market at £275,000.
0:49:24 > 0:49:26For the rental market, I believe you'd be
0:49:26 > 0:49:29looking in the region of £1,250 per calendar month.
0:49:29 > 0:49:33For the rental market, I'd recommend an asking price of £1,350
0:49:33 > 0:49:35per calendar month.
0:49:35 > 0:49:38I'm really happy with those figures.
0:49:38 > 0:49:42It's been a lot of hard work but it's been worth it.
0:49:42 > 0:49:47Adnan's already had an offer of £270,000, which he's considering.
0:49:47 > 0:49:51And having spent a total of £224,800, that would give him
0:49:51 > 0:49:55a pre-tax profit of just over 45 grand.
0:49:55 > 0:49:59So, having got some terrific takings on his rookie development,
0:49:59 > 0:50:02what advice would he share?
0:50:02 > 0:50:05Try and do as much homework as you can before buying.
0:50:05 > 0:50:08You can only take an educated guess on these kind of things
0:50:08 > 0:50:13and hopefully you don't fall into any kind of big traps.
0:50:17 > 0:50:21Talking of potential traps, it's time now to return to
0:50:21 > 0:50:23a three-bed semi in Wishaw that had
0:50:23 > 0:50:26an attractive guide price of £40,000.
0:50:26 > 0:50:29But less attractive was the outside appearance
0:50:29 > 0:50:32and, as for the inside, well...
0:50:33 > 0:50:35COUGHING
0:50:38 > 0:50:42Yes, this house is uninhabitable as it currently stands, there's
0:50:42 > 0:50:47wiring hanging out, the ceiling's caved in, it really does smell.
0:50:47 > 0:50:54# Cos I'm never going home Until the pain inside is gone. #
0:50:56 > 0:50:58And the pain didn't stop here
0:50:58 > 0:51:01because on top of everything else, this house was of non-standard
0:51:01 > 0:51:05construction, so not so easy to get a mortgage on.
0:51:05 > 0:51:09None of that was a worry for 21-year-old Chris, who, on behalf
0:51:09 > 0:51:13of his family business, was taking charge of their move into property.
0:51:13 > 0:51:17He paid 44 grand at auction and he certainly had taken on a challenge.
0:51:17 > 0:51:21But Chris seemed, well, a little relaxed.
0:51:21 > 0:51:23I've not really got a budget, to be honest.
0:51:23 > 0:51:25We're going to have to spend what we need to spend.
0:51:25 > 0:51:29How long do you think it's going to take you to renovate?
0:51:29 > 0:51:32Don't be giving me, "I don't know," because I've got no budget to go on
0:51:32 > 0:51:34and now I don't know how long it's going to take you.
0:51:34 > 0:51:38- A couple of months? - Yeah, a couple of months.
0:51:39 > 0:51:42OK, so I did push him a bit to say two months,
0:51:42 > 0:51:46but no budget, no timescale, that's why I'm here.
0:51:46 > 0:51:49Anyway, I thought it was best to leave him in peace,
0:51:49 > 0:51:52he'll give us a shout when he's ready, I'm sure.
0:51:57 > 0:52:04Seven months later we've returned and what a transformation.
0:52:04 > 0:52:08MUSIC: The Changingman by Paul Weller
0:52:14 > 0:52:17Chris and his family have done a terrific job,
0:52:17 > 0:52:21taking this from damp and derelict to warm and welcoming.
0:52:21 > 0:52:25Even the outside's been transformed with new windows, new doors
0:52:25 > 0:52:27and a new coat of paint.
0:52:27 > 0:52:31Where did he even begin tackling this?
0:52:31 > 0:52:34First we had to see how bad the damage was.
0:52:34 > 0:52:40We noticed that the boiler had been stolen, so the pipes had not been
0:52:40 > 0:52:44capped, the water poured through the ceiling into the downstairs and
0:52:44 > 0:52:48it had been left vacant for months. The dampness was everywhere.
0:52:48 > 0:52:51We had to replace every wall in the house,
0:52:51 > 0:52:55take it back to the brick, we've pretty much changed everything.
0:52:56 > 0:53:00It's pretty much a brand-new house with an old shell outside.
0:53:00 > 0:53:03We weren't really expecting it to be this difficult,
0:53:03 > 0:53:07but that's what happens when you buy a house without viewing it first.
0:53:07 > 0:53:12MUSIC: Hate To Say I Told You So by The Hives
0:53:12 > 0:53:14Sorry, Chris, I couldn't resist that.
0:53:14 > 0:53:16But what are our three golden rules?
0:53:16 > 0:53:20Do your homework, view the property beforehand and read the legal pack.
0:53:20 > 0:53:23Anyway, back to the great job that's been done here.
0:53:23 > 0:53:27Upstairs the three bedrooms have all been redecorated
0:53:27 > 0:53:29and are just waiting to be carpeted.
0:53:29 > 0:53:34But downstairs, well, he didn't just redecorate.
0:53:34 > 0:53:38Well, as you can see, we've got a new kitchen here.
0:53:38 > 0:53:41When we first bought the house, this was two separate rooms.
0:53:41 > 0:53:44Where I'm stood here was the door between the two rooms.
0:53:44 > 0:53:47We decided to take that down and
0:53:47 > 0:53:49modernise the house and make it open-plan
0:53:49 > 0:53:51and it's worked out nicely.
0:53:51 > 0:53:54As well as the new kitchen, Chris fitted the bathroom with
0:53:54 > 0:53:58a new suite and completely retiled and repainted.
0:53:58 > 0:54:01He also installed a new boiler in the kitchen
0:54:01 > 0:54:04and replaced all the radiators throughout the house.
0:54:04 > 0:54:06And I think he's done a cracking job
0:54:06 > 0:54:09because this house was in a right old state.
0:54:09 > 0:54:12Chris, his father and his brother bought this property
0:54:12 > 0:54:15as a diversification in the family business
0:54:15 > 0:54:18and Chris wasn't just in charge of the project
0:54:18 > 0:54:22and organising family and friends to help, he got stuck in too.
0:54:22 > 0:54:26I lent a helping hand in anything that I was told to do.
0:54:26 > 0:54:29Obviously, my cousin's a joiner,
0:54:29 > 0:54:32I'd help him with things that he told me to do.
0:54:32 > 0:54:37Painting was straightforward, I was just told what to do and I'd do it.
0:54:37 > 0:54:40I also helped refloor and I also helped plaster the walls.
0:54:40 > 0:54:44We probably did more than we needed to do but, at the end of the day,
0:54:44 > 0:54:47this has got to be our asset.
0:54:47 > 0:54:51You've got to do it to a high standard
0:54:51 > 0:54:54because that means it'll last longer and it will future-proof it.
0:54:54 > 0:54:57Well, I think that's a very smart way to look at things, especially as
0:54:57 > 0:55:01the family are looking to let this and begin building their portfolio.
0:55:01 > 0:55:06But how much has been spent from Chris's notoriously vague budget?
0:55:06 > 0:55:10MUSIC: Notorious by Duran Duran
0:55:10 > 0:55:13We spent 11,000 on doing this house up.
0:55:13 > 0:55:17We sourced the materials locally from builders' merchants -
0:55:17 > 0:55:22it's always good to give back to the local community.
0:55:22 > 0:55:27Getting all that work done for 11 grand is good going and, OK,
0:55:27 > 0:55:30it took just over seven months but that was because Chris had to
0:55:30 > 0:55:34wait for the damp beams to dry before he could begin renovation
0:55:34 > 0:55:38and all his family and friends were working in their spare time.
0:55:38 > 0:55:40Well, it's time now to see what two local estate agents
0:55:40 > 0:55:44think of this Wishaw wonder.
0:55:44 > 0:55:47Particularly, I like the kitchen, I like the fact it is open-plan,
0:55:47 > 0:55:50you know, that will suit a lot of families that like
0:55:50 > 0:55:52that open-plan living where you can be in cooking
0:55:52 > 0:55:54and the living room's open to it.
0:55:54 > 0:55:56I like the fact that the bathroom has the bath
0:55:56 > 0:55:58and there's a separate shower,
0:55:58 > 0:56:00I think they're two really good aspects.
0:56:00 > 0:56:02It's been done to a good standard,
0:56:02 > 0:56:05you can see there's quite a lot of money been spent, obviously,
0:56:05 > 0:56:07nice new windows.
0:56:07 > 0:56:10The negative about the property is that, you can see,
0:56:10 > 0:56:14it's a non-standard roof that's on it, that pulls down the sales value
0:56:14 > 0:56:17but it shouldn't affect the rental value.
0:56:17 > 0:56:20Well, renting is exactly what Chris wants to do.
0:56:20 > 0:56:24So having spent £44,000 on the property at auction
0:56:24 > 0:56:29and £11,000 renovating, it's time now to get some valuations.
0:56:29 > 0:56:33In its current condition we would be looking at £70-£80,000.
0:56:33 > 0:56:37In this area, I believe this property could achieve £60,000.
0:56:37 > 0:56:40Rental wise, because of the high specification of it, we're going
0:56:40 > 0:56:44to get a premium and I'd estimate between £495-£550 per calendar month.
0:56:44 > 0:56:47Rental wise, I believe this property would achieve between
0:56:47 > 0:56:52£475 and £525 per calendar month.
0:56:52 > 0:56:54I'm quite happy with that.
0:56:54 > 0:56:56The amount of money I've spent on this house
0:56:56 > 0:57:00and the price I got it for, I'm still making money.
0:57:00 > 0:57:03Very different valuations by the agents there.
0:57:03 > 0:57:08The agent giving the higher figure is basing the resale price on nearby
0:57:08 > 0:57:11sales values and the fact that this house changed hands
0:57:11 > 0:57:14in 2009 for £75,000.
0:57:14 > 0:57:17While, the other agent felt that Chris might have overspent and the
0:57:17 > 0:57:22£60,000 valuation better reflected the value in the home report.
0:57:22 > 0:57:27However, that potential profit of between £5-£25,000 could
0:57:27 > 0:57:32change due to the vagaries of the offers-over system in Scotland.
0:57:32 > 0:57:36That's all academic though, as this is for the rental market.
0:57:36 > 0:57:40That top rental figure would give him a yield of 12%.
0:57:40 > 0:57:43Suddenly, all that hard work seems worth it
0:57:43 > 0:57:46and after having to live next door to a derelict building
0:57:46 > 0:57:49for months, I bet the neighbour appreciates Chris's work too.
0:57:51 > 0:57:55Oh, she's over the moon with the fact that the house is looking
0:57:55 > 0:57:59a lot nicer, it's tidier and she might have a neighbour now.
0:58:03 > 0:58:06Well, as you can see, there is a lot to learn in the world of property.
0:58:06 > 0:58:09Yeah, but stay with us and we'll make sure we'll do our best
0:58:09 > 0:58:10to give you some tips.
0:58:10 > 0:58:13Join us next time when more plucky people buy their
0:58:13 > 0:58:15Homes Under The Hammer.
0:58:15 > 0:58:16- Cheerio.- Bye-bye.- Goodbye.