0:00:02 > 0:00:03Hello, and welcome to the show.
0:00:03 > 0:00:04Now, when you're buying property
0:00:04 > 0:00:06there are often delays and complications.
0:00:06 > 0:00:11Words like "best and final offer", "gazumped", and, urgh,
0:00:11 > 0:00:14the dreaded "chain" will fill you with dread.
0:00:14 > 0:00:15But if time is of the essence,
0:00:15 > 0:00:17why not pop down to your local property auction?
0:00:17 > 0:00:21Yes, the keys could be in your hands in just four weeks.
0:00:21 > 0:00:24So, do you fancy buying under the hammer?
0:00:50 > 0:00:53Well, I always like to find out stories behind the auction buys.
0:00:53 > 0:00:55Why did they want to buy, and what are they going to do?
0:00:55 > 0:00:58Well, I think it's time to find out, don't you?
0:00:58 > 0:01:00Here are the properties on today's show.
0:01:01 > 0:01:03First up in Bury, Lancashire,
0:01:03 > 0:01:06the auction room can be a tough test.
0:01:06 > 0:01:08It's, erm, quite frightening.
0:01:08 > 0:01:10But at the same time exciting.
0:01:11 > 0:01:13Whilst in Grove Park, London,
0:01:13 > 0:01:14Slava breaks the hammer rules.
0:01:14 > 0:01:17Now, did you have a chance to glance through the legal pack
0:01:17 > 0:01:18- prior to the auction?- No.
0:01:18 > 0:01:20- You didn't read it?- No!
0:01:21 > 0:01:24And in the picturesque village of Butetown, Rhymney,
0:01:24 > 0:01:26I get off to a good start.
0:01:26 > 0:01:29What am I going to find?
0:01:29 > 0:01:30Ooh...
0:01:30 > 0:01:32it's nice!
0:01:32 > 0:01:34All these properties have been sold at auction.
0:01:34 > 0:01:37We'll find out who bought them and what they paid for them
0:01:37 > 0:01:39when they went under the hammer.
0:01:39 > 0:01:41Yours, madam. Well done.
0:01:47 > 0:01:49We go now to Bury in Lancashire, a popular commuter town
0:01:49 > 0:01:52for those working in nearby Manchester.
0:01:52 > 0:01:55But Bury is also popular for its well-known market.
0:01:55 > 0:01:58In particular, the Bury black pudding, which is sold right here.
0:02:00 > 0:02:04Just a 10-minute drive away from Bury's busy town centre
0:02:04 > 0:02:05is a property I'm here to see.
0:02:05 > 0:02:08It's a two bed extended semidetached property
0:02:08 > 0:02:11with a guide price of £75,000.
0:02:11 > 0:02:14Now, that seems quite reasonable to me.
0:02:14 > 0:02:16Am I going to feel the same way after I've had a look around?
0:02:23 > 0:02:26Let's see what you get for your money, then.
0:02:26 > 0:02:29You've got your stairs off a very small hallway
0:02:29 > 0:02:30going up to the bedrooms.
0:02:30 > 0:02:34Straight into a lounge living area, which is an OK size.
0:02:34 > 0:02:37Laminate flooring, which I'm not a massive fan of.
0:02:37 > 0:02:41I do like a nice snuggly carpet underfoot in the lounge living area.
0:02:41 > 0:02:44Fireplace there, which seems OK.
0:02:44 > 0:02:46Warm up those cold evenings. Not too bad.
0:02:46 > 0:02:50Through into the kitchen, which is quite dark.
0:02:50 > 0:02:51A long galley kitchen here.
0:02:51 > 0:02:55Not a massive job in the kitchen at all, I'm quite surprised, actually.
0:02:55 > 0:02:58Through into the extension here,
0:02:58 > 0:03:01which is quite cold.
0:03:01 > 0:03:04I can feel it, as soon as you come in, you can feel that it's cold.
0:03:04 > 0:03:07Probably single lined walls.
0:03:08 > 0:03:13On all sides of this sort of makeshift lean-to.
0:03:13 > 0:03:15And it just doesn't work, doesn't work at all.
0:03:15 > 0:03:17So, I'd be inclined to, I'll have a look outside as well,
0:03:17 > 0:03:20of course, but I'd be inclined to get rid of this.
0:03:20 > 0:03:21It's just...
0:03:21 > 0:03:23It's not in keeping with the house at all.
0:03:23 > 0:03:24Bit disjointed.
0:03:24 > 0:03:28# You'd better do better than that. #
0:03:28 > 0:03:32Down here is obviously a little bit tatty all over.
0:03:32 > 0:03:34And I'm not at all keen on this extension.
0:03:34 > 0:03:38With the lack of insulation in here, it seems like a job half done to me,
0:03:38 > 0:03:40and an opportunity missed.
0:03:41 > 0:03:44But let's see what's in store for us upstairs.
0:03:45 > 0:03:48OK, upstairs you have got the two bedrooms,
0:03:48 > 0:03:52bathroom there, which somebody's started decorating,
0:03:52 > 0:03:55sort of a beach hut look just there.
0:03:55 > 0:03:57But neat enough.
0:03:57 > 0:04:00Bedroom there at the back of the property, which is,
0:04:00 > 0:04:01it's a bit of a mess, but an OK size.
0:04:01 > 0:04:03You'll get a single bed in there, or a double.
0:04:03 > 0:04:06Into the main bedroom over here,
0:04:06 > 0:04:12but my eye's straight drawn to this horrible piece of damp.
0:04:12 > 0:04:15And it's actually still quite damp to touch.
0:04:15 > 0:04:17This must have been happening for some time
0:04:17 > 0:04:19because it's completely rotted away.
0:04:19 > 0:04:22So, it must have been seeping through for quite a long time
0:04:22 > 0:04:26to make it look as bad as this and feel as bad as this as well.
0:04:26 > 0:04:29So, this whole area isn't in good condition whatsoever.
0:04:29 > 0:04:33And I think somebody's tried a bit of, not DIY,
0:04:33 > 0:04:35I think this is dodgy DIY.
0:04:37 > 0:04:39So, that would be DDIY, then?
0:04:39 > 0:04:41And not recommended.
0:04:41 > 0:04:43Investigate the roof and the guttering thoroughly, though,
0:04:43 > 0:04:46and hopefully this damp can be dealt with.
0:04:46 > 0:04:49Patching over the damage just won't do.
0:04:49 > 0:04:50Time to head outside.
0:04:53 > 0:04:55OK, outside to the back garden.
0:04:55 > 0:04:59There is a bit of space out here, a bit of grass as well.
0:04:59 > 0:05:01As you can see, you'd need to put some new fencing up
0:05:01 > 0:05:03along the side of there and at the back.
0:05:03 > 0:05:04Just generally tidy it up.
0:05:04 > 0:05:08I'd be inclined to get rid of that shed, it's a bit of a mess.
0:05:08 > 0:05:10But I do like to look back at the property
0:05:10 > 0:05:13cos you can see some things that you can't see from the front.
0:05:13 > 0:05:15Now, the point is not great at all,
0:05:15 > 0:05:17and I can see a crack above the back window as well.
0:05:17 > 0:05:20Apart from that, guttering seems fine.
0:05:20 > 0:05:23This could be a nice outside area, nice garden space,
0:05:23 > 0:05:28table and chairs, nice cup of tea, beautiful Sunday afternoon.
0:05:28 > 0:05:29Before the kettle goes on, though,
0:05:29 > 0:05:33there's a fair bit of work to do here inside and out.
0:05:33 > 0:05:38Like I said, I would take another look at that extension if it were me.
0:05:38 > 0:05:42But it does have a healthy guide price of £75,000.
0:05:42 > 0:05:45Let's hear the opinions of a local property expert.
0:05:45 > 0:05:47First impressions of the property,
0:05:47 > 0:05:50it needs a little bit of TLC.
0:05:50 > 0:05:52It needs some renovation, some decoration,
0:05:52 > 0:05:56and I think there are a few little bit and pieces to be dealt with
0:05:56 > 0:05:59with regards to the property to improve it.
0:06:00 > 0:06:03As I thought, some work to be done and some decisions to be made.
0:06:03 > 0:06:08But once it's refurbished, what kind of valuation are we talking?
0:06:08 > 0:06:10This property, when renovated,
0:06:10 > 0:06:13would probably achieve between 95 and £100,000.
0:06:14 > 0:06:16And what about rental?
0:06:16 > 0:06:19Once renovated, this property would achieve on the rental market
0:06:19 > 0:06:23between 500 and £550 per calendar month.
0:06:23 > 0:06:26This property seems to be in reasonably good condition.
0:06:26 > 0:06:28You can turn it round with a bit of TLC.
0:06:28 > 0:06:30Small renovation job,
0:06:30 > 0:06:32and you could make a few quid if you put it up to rent.
0:06:32 > 0:06:34Let's see who fancied it when it went to auction.
0:06:37 > 0:06:40Anybody here? Extended two bedroom semidetached.
0:06:40 > 0:06:43Let's get it started at £65,000.
0:06:43 > 0:06:44Anyone?
0:06:44 > 0:06:4565 here.
0:06:45 > 0:06:48I've 65 on bid here now. In ones.
0:06:48 > 0:06:4966. 67.
0:06:49 > 0:06:51That's 67 I'm bid now.
0:06:51 > 0:06:5268.
0:06:52 > 0:06:55Just beat you to it, sir. 68. 69?
0:06:55 > 0:06:57Can I? 69, I'm bid.
0:06:57 > 0:06:5870?
0:06:58 > 0:07:00You're out.
0:07:00 > 0:07:0170 I've got.
0:07:01 > 0:07:03In a very quiet auction room,
0:07:03 > 0:07:05the property's mustering up some interest.
0:07:05 > 0:07:08We rejoin the bidding at £78,000.
0:07:08 > 0:07:0978.
0:07:09 > 0:07:1079.
0:07:10 > 0:07:1280. Shake of the head.
0:07:12 > 0:07:17Here at £79,000, stood to the rear.
0:07:17 > 0:07:20For the first time, then, with you sir, it's 79.
0:07:20 > 0:07:21Second time it's 79.
0:07:21 > 0:07:23If you're all done...
0:07:23 > 0:07:2679 and a half, I'll take it. 80.
0:07:26 > 0:07:28Can you? 80 I've got. Half?
0:07:28 > 0:07:32You're out. With you now, sir. Against you, and against you.
0:07:32 > 0:07:34At £80,000, here to sell.
0:07:34 > 0:07:36First-time, second time.
0:07:36 > 0:07:38Are you all done?
0:07:38 > 0:07:40Then at £80,000, I'm selling this.
0:07:40 > 0:07:42- GAVEL STRIKES - Well done, sir. Stood to the rear.
0:07:42 > 0:07:43Paddle number...
0:07:45 > 0:07:50The successful bid of £80,000 goes to retired science teacher, Paul.
0:07:50 > 0:07:53# Teacher, teacher
0:07:53 > 0:07:56# There's so much I'm longing to know. #
0:07:56 > 0:07:59Property novice Paul used to live and work in Bury.
0:07:59 > 0:08:02But now lives up on the west coast of Scotland.
0:08:02 > 0:08:05I met up with Paul to hear what scientific methods
0:08:05 > 0:08:08he was going to apply to his new purchase.
0:08:09 > 0:08:12- Hi, Paul. Nice to meet you.- And you. - Congratulations.- Thank you very much.
0:08:12 > 0:08:14Tell us about the auction, first and foremost.
0:08:14 > 0:08:16How was it, cos this is your first big venture?
0:08:16 > 0:08:20- My heart was really pounding. I thought...- With excitement, maybe?
0:08:20 > 0:08:22- Yeah, it was, but also, I mean, it's first-time.- Of course.
0:08:22 > 0:08:25First time I've been to auction, bought a house,
0:08:25 > 0:08:28- and suddenly it dawns on you. Goodness!- This is mine!
0:08:28 > 0:08:31- I've got this house! - I've got to do something with it now.
0:08:31 > 0:08:33So, erm, yeah, it's quite frightening.
0:08:33 > 0:08:36- But at the same time exciting. - Good for you.
0:08:36 > 0:08:37Well, you've got it now. It's yours.
0:08:37 > 0:08:40What are you going to do with it? Have you got any ideas?
0:08:40 > 0:08:43Are you looking for ideas from your family, or wife, or?
0:08:43 > 0:08:47- There are no major concerns.- Uh-huh.
0:08:47 > 0:08:49- Obviously, a bit of work needs doing on it.- Yeah, of course.
0:08:49 > 0:08:52- I'll get a roofer in to check that over.- For the damp?
0:08:52 > 0:08:54- The back bedroom.- Yeah.
0:08:54 > 0:08:55I think that's probably the gutter.
0:08:55 > 0:08:59I've got a couple of guys lined up who are, sort of, professionals.
0:08:59 > 0:09:03- One being a roofer, and a plumber.- Yes, yes.
0:09:03 > 0:09:07- So it's all new, this is all new to you, Paul?- It is.
0:09:07 > 0:09:09I mean, those sort of skills I haven't got.
0:09:09 > 0:09:11- So I'm going to get the professionals in.- OK.
0:09:11 > 0:09:14Get the heating sorted out, get the roof sorted out.
0:09:14 > 0:09:16Then the rest of it, I'm going to do.
0:09:16 > 0:09:20What about that little addition just to your right shoulder, there?
0:09:20 > 0:09:22- You mean here? - Yes, little thing here. Correct!
0:09:22 > 0:09:26- It looks a little bit of an eyesore from the outside.- Will you keep it?
0:09:26 > 0:09:28- I will.- OK.- I will.
0:09:28 > 0:09:31One of my sons, he loves it.
0:09:31 > 0:09:32He thinks it's really quirky.
0:09:32 > 0:09:34And he loves the wood panelling on the outside.
0:09:34 > 0:09:38Yeah, I will work on it and improve it.
0:09:38 > 0:09:41But I think it's quite useful addition.
0:09:41 > 0:09:44Yeah, if you get it right and you get it insulated.
0:09:44 > 0:09:48- Properly insulated, new French doors on.- Yep.
0:09:48 > 0:09:52And, erm, it should hopefully be a nice little extra room.
0:09:52 > 0:09:54Kitchen seems fine.
0:09:54 > 0:09:57- Yeah, it needs, obviously, a good clean.- Of course.
0:09:57 > 0:10:01- But it's big enough, isn't it?- It is, yeah.
0:10:01 > 0:10:03Yeah, I'm quite impressed with the kitchen.
0:10:03 > 0:10:06I mean I had thought about putting a white kitchen in here
0:10:06 > 0:10:08- to create a bit more light.- Yeah.
0:10:08 > 0:10:14But I've got to, as my two boys keep telling me,
0:10:14 > 0:10:17you're doing it up to make a little profit, hopefully.
0:10:17 > 0:10:21- I've got to keep a tight control on the budget.- Yeah.
0:10:21 > 0:10:23So, I'm just going to decorate and brighten it up.
0:10:23 > 0:10:26So, what is, you mentioned a tight grip on the budget.
0:10:26 > 0:10:28What is your budget going to be like for this for this overhaul?
0:10:28 > 0:10:30- Hopefully about £5,000.- OK.
0:10:30 > 0:10:32- To do everything? - To do everything.- Wow.
0:10:32 > 0:10:38I mean, the boiler. I've looked at boilers, £650. So...
0:10:38 > 0:10:42- Big chunk, isn't it?- It is. - Big chunk of the budget.
0:10:42 > 0:10:48- And the roof, I'm hoping probably £1,200.- OK.
0:10:48 > 0:10:50Just overhaul the roof, guttering.
0:10:50 > 0:10:54# Money's too tight to mention
0:10:54 > 0:10:59# I can't get an unemployment extension. #
0:10:59 > 0:11:01Well, that is a tight budget
0:11:01 > 0:11:03considering the work that's needed here.
0:11:04 > 0:11:07Paul hopes to get that work done in 10 to 12 weeks
0:11:07 > 0:11:09with the help of three of his four sons,
0:11:09 > 0:11:11two of whom owe him a favour.
0:11:13 > 0:11:15I retired two and a half years ago.
0:11:15 > 0:11:19About that time, both boys bought a house around my distance
0:11:19 > 0:11:22and they needed decorating from top to bottom.
0:11:22 > 0:11:24- So, I give them a hand.- Ah.
0:11:24 > 0:11:26Or did you do it all?
0:11:26 > 0:11:29Oh, no! No, they both, obviously, they were working.
0:11:29 > 0:11:32So their time was limited. Weekends.
0:11:32 > 0:11:35But I was there seven days a week, so,
0:11:35 > 0:11:37I did the bulk of it, I think.
0:11:37 > 0:11:40But they both got their hands dirty and got involved.
0:11:40 > 0:11:42So, I think they both owe me.
0:11:42 > 0:11:45- They'll come back, and, erm... - They've got no choice.
0:11:45 > 0:11:48- They can take one of the bedrooms on and do that for me. So...- That's it.
0:11:48 > 0:11:51Give them a bedroom each and they can sort it out, can't they?
0:11:51 > 0:11:54- Yeah, I can be the boss. I can be the foreman.- Exactly.
0:11:54 > 0:11:55Well, Paul, I wish you all the best.
0:11:55 > 0:11:58I'm sure your sons will hope you achieve what you want to achieve
0:11:58 > 0:12:00- in that head of yours.- I hope so.
0:12:00 > 0:12:01- Good luck.- Thank you very much.
0:12:01 > 0:12:03I hope it all works out for you.
0:12:05 > 0:12:09Paul, the retired science teacher, is taking on a new type of experiment,
0:12:09 > 0:12:11this time in the property world.
0:12:11 > 0:12:14Will he stay within that £5,000 budget,
0:12:14 > 0:12:16and will he keep this wooden structure?
0:12:16 > 0:12:17It's not for me.
0:12:17 > 0:12:20You can find out how he gets on later on in the programme.
0:12:25 > 0:12:28This is Grove Park in south-east London,
0:12:28 > 0:12:30with its excellent rail links in to the city,
0:12:30 > 0:12:34Grove Park is becoming increasingly popular with young professionals and families.
0:12:34 > 0:12:38It's said that Edith Nesbit, author of The Railway Children,
0:12:38 > 0:12:41found inspiration for her famous book after living in the area
0:12:41 > 0:12:45from 1894 to 1899.
0:12:45 > 0:12:47Now, I love a bit of local history.
0:12:47 > 0:12:51But it's time to get back on track and find out about today's property.
0:12:52 > 0:12:55When buyers are priced out of Blackheath and Dulwich,
0:12:55 > 0:12:58they turn to this area for more affordable alternatives,
0:12:58 > 0:13:01as you get more for your money around here.
0:13:01 > 0:13:05So, what was the guide price for a two-bedroom ground floor flat
0:13:05 > 0:13:08along this, admittedly, rather busy road?
0:13:08 > 0:13:11£125,000 plus?
0:13:11 > 0:13:14Sounds like it could be good value to me.
0:13:14 > 0:13:18£125,000 might not sound cheap to everyone.
0:13:18 > 0:13:21But don't forget, this is the London property market.
0:13:21 > 0:13:24The most expensive place to buy in the UK.
0:13:27 > 0:13:30Well, it's all a bit angular entering the flat.
0:13:30 > 0:13:33A little bit, sort of, difficult to get in.
0:13:33 > 0:13:34And a really long corridor.
0:13:34 > 0:13:36And I mean really long!
0:13:36 > 0:13:38Gosh, all of the rooms lead off here.
0:13:38 > 0:13:41So, we've got the lounge through there, which is a fantastic space.
0:13:41 > 0:13:43Got a little bit of storage there.
0:13:43 > 0:13:45Really nice high ceilings.
0:13:45 > 0:13:47Another bedroom, perhaps, through there.
0:13:47 > 0:13:49And then it becomes really condensed.
0:13:49 > 0:13:52Look at that, it's like a very squashed space through here.
0:13:52 > 0:13:54Now, in here is the kitchen.
0:13:54 > 0:13:57And it's just feels like it's been slotted in
0:13:57 > 0:13:58along this really long corridor.
0:13:58 > 0:14:02But once you're in, again, you've got these nice high ceilings.
0:14:02 > 0:14:05So, it feels quite spacious when you're in here.
0:14:05 > 0:14:10And I'm quite happy to say that I think you could leave the kitchen as it is.
0:14:10 > 0:14:12Get rid of all the surface debris.
0:14:12 > 0:14:14Maybe put down some new flooring,
0:14:14 > 0:14:17because this lino has definitely seen better days.
0:14:17 > 0:14:18But not bad at all.
0:14:18 > 0:14:21A bit of a clean, get the old rubber gloves on,
0:14:21 > 0:14:23and, er, what have we got out here?
0:14:26 > 0:14:28Well, this is a rather small lean-to.
0:14:28 > 0:14:30I'd usually say knock these down,
0:14:30 > 0:14:32but actually it does serve a purpose.
0:14:32 > 0:14:34You could store your boots and your shoes
0:14:34 > 0:14:36and your little bits and pieces for your garden.
0:14:36 > 0:14:39Now, when I say garden, that's because the good news is
0:14:39 > 0:14:42with this ground floor flat, you get some outside space.
0:14:42 > 0:14:45And it's fantastic outside space. I mean, look.
0:14:45 > 0:14:48You've got pretty shrubs, you've got outside area.
0:14:48 > 0:14:49You could grow vegetables.
0:14:49 > 0:14:51There's table and chairs over there for the summer months.
0:14:51 > 0:14:54And you do have to share this with the flat above.
0:14:54 > 0:14:55But what's not to like?
0:14:55 > 0:14:57It's a great space for London.
0:14:57 > 0:15:00# Better than nothing
0:15:00 > 0:15:02# I can't deny
0:15:02 > 0:15:05# Better than nothing
0:15:05 > 0:15:06# Poke in the eye... #
0:15:06 > 0:15:10Yes, outside space is much sought-after in London,
0:15:10 > 0:15:12and not to be sniffed at.
0:15:12 > 0:15:16Stepping back inside, there's a tiny bathroom in need of
0:15:16 > 0:15:18freshening up and another double bedroom
0:15:18 > 0:15:21which is in need of a total makeover.
0:15:21 > 0:15:24And it looks like the electrics might need to be updated too.
0:15:24 > 0:15:28It all feels rather dark and higgledy-piggledy in this flat.
0:15:28 > 0:15:32But it's still a great property for that guide price.
0:15:32 > 0:15:36So far, so good, not much work to do in the flat.
0:15:36 > 0:15:40But this is something I always say - if something's sold at auction,
0:15:40 > 0:15:42well, there must be a reason why,
0:15:42 > 0:15:46and usually that translates into an issue of some description.
0:15:46 > 0:15:50So...maybe there's something you can't physically see
0:15:50 > 0:15:51with the property?
0:15:51 > 0:15:55Yes, I'm afraid so, one of the reasons that this flat
0:15:55 > 0:15:58went to auction was probably because it has
0:15:58 > 0:16:01a very short lease of only 56 years.
0:16:01 > 0:16:04Not good news, and a costly problem to sort out.
0:16:04 > 0:16:07# Too good to be true
0:16:08 > 0:16:11# Too good to be true... #
0:16:13 > 0:16:16You would need to contact the freeholder to discuss
0:16:16 > 0:16:18the lease extension, which could take time
0:16:18 > 0:16:23and will undoubtedly amount to thousands of pounds to sort out.
0:16:23 > 0:16:25Unfortunately though, with such a short lease, well,
0:16:25 > 0:16:28it'll be very difficult to get a mortgage on this flat.
0:16:28 > 0:16:32Cash buyers only, and I hope that whoever bought this flat
0:16:32 > 0:16:36stuck to Hammer's golden rule - read the legal pack.
0:16:37 > 0:16:41We invited a local estate agent along to discuss the highs
0:16:41 > 0:16:47and lows of this ground-floor property, guided at £125,000 plus.
0:16:47 > 0:16:50The flat would need a total overhaul in terms of kitchen,
0:16:50 > 0:16:53bathroom and a general decorate.
0:16:53 > 0:16:56For resale value, having a short lease,
0:16:56 > 0:17:00it becomes very difficult, cos it is for cash buyers only.
0:17:00 > 0:17:03Which does limit yourself on the resale value.
0:17:03 > 0:17:06From experience, extending the lease
0:17:06 > 0:17:10could range from anything around £3-4,000 up to £30,000.
0:17:11 > 0:17:15Wow, so it really could be a massive expense on top of
0:17:15 > 0:17:17the purchase price and renovation costs.
0:17:17 > 0:17:21You just don't know what the freeholder will ask for.
0:17:21 > 0:17:26Quite the gamble, but is it worth it? Let's hear those valuations.
0:17:26 > 0:17:28I believe this property could sell with a new lease
0:17:28 > 0:17:32in the region of around £225,000.
0:17:32 > 0:17:37With a short lease, once renovated, in the region of around £165,000.
0:17:37 > 0:17:39So, a big, big difference.
0:17:39 > 0:17:43Fingers crossed, that lease won't be too expensive to renew.
0:17:43 > 0:17:47Let's hear the rental figures, which won't be affected by the lease.
0:17:48 > 0:17:51Once renovated, I believe this flat would achieve
0:17:51 > 0:17:54in the region of £1,200 per-calendar-month.
0:17:54 > 0:17:59So, a decent flat for an affordable price in this part of London,
0:17:59 > 0:18:03but its end value will always be limited until that short lease
0:18:03 > 0:18:05is extended. Who wanted to take it on?
0:18:05 > 0:18:08Let's find out, when it went under the hammer.
0:18:10 > 0:18:13Resold self-contained ground-floor flat, with a garden,
0:18:13 > 0:18:15start me at 110.
0:18:15 > 0:18:19Thank you, at the back, 110 I'm bid. 115...
0:18:21 > 0:18:2410 I have. Thank you, 15. 20...
0:18:24 > 0:18:2820. 25? Might take a thousand.
0:18:28 > 0:18:3021. 22?
0:18:31 > 0:18:37- No. £121,000 then...- After a cagey start, the bidding picks up,
0:18:37 > 0:18:40and we return at £135,000.
0:18:42 > 0:18:44For the first... 36, 37...
0:18:44 > 0:18:4637... 38.
0:18:47 > 0:18:51Ah, your friend says yes. 138. 39?
0:18:52 > 0:18:5439, make it 140.
0:18:55 > 0:18:59At £139,000... At the back on the left.
0:18:59 > 0:19:00First time...
0:19:00 > 0:19:02second time...
0:19:02 > 0:19:03140. 41?
0:19:04 > 0:19:0641. 42?
0:19:07 > 0:19:10Think they meant it this time, think you've got it, sir.
0:19:10 > 0:19:11141 then, for the first...
0:19:11 > 0:19:13second...
0:19:13 > 0:19:16third and final time, at £141,000...
0:19:16 > 0:19:18HE STRIKES HAMMER
0:19:18 > 0:19:20Sold to you, sir, at 141.
0:19:22 > 0:19:26And that successful bid of £141,000 belonged to
0:19:26 > 0:19:29bespoke furniture maker Slava.
0:19:29 > 0:19:34He was bidding on behalf of himself and business partner Macin.
0:19:34 > 0:19:36They're both originally from the Ukraine,
0:19:36 > 0:19:39but have been living and working in the UK for ten years.
0:19:39 > 0:19:42They renovated properties back in the Ukraine,
0:19:42 > 0:19:45but this will be their first foray into the UK market.
0:19:45 > 0:19:49I met Slava back at the flat to find out their plans.
0:19:49 > 0:19:52- Slava, congratulations!- Thank you.
0:19:52 > 0:19:54So, are you happy with the price you paid on auction day?
0:19:54 > 0:19:56Eh, you know, what can you say?
0:19:56 > 0:19:59I'm happy, yeah, because I've started with something,
0:19:59 > 0:20:01but always could be less.
0:20:01 > 0:20:04OK, so this is your first ever auction purchase.
0:20:04 > 0:20:06Yeah, and the property as well.
0:20:06 > 0:20:08To be fair, there's not a lot you can
0:20:08 > 0:20:11buy in London for under £150,000 with a garden.
0:20:11 > 0:20:13That's right, yeah.
0:20:13 > 0:20:15So what is it that you liked about this property
0:20:15 > 0:20:17and did you view it beforehand?
0:20:17 > 0:20:19It was a quick view, about 15 minutes.
0:20:19 > 0:20:22What I like is the condition is not that bad,
0:20:22 > 0:20:25so not much to spend on it to get it even better.
0:20:25 > 0:20:27And the garden, as you said,
0:20:27 > 0:20:30and also it's quite convenient for me as I work nearby.
0:20:30 > 0:20:32I know that you are a furniture maker.
0:20:32 > 0:20:33Are you hoping to tie the two,
0:20:33 > 0:20:36property developing and making things, into one job?
0:20:36 > 0:20:39Yes, that is the main idea, because quite often we work
0:20:39 > 0:20:42for someone who is developing a property,
0:20:42 > 0:20:44and we've seen them doing it, and we're working for someone else,
0:20:44 > 0:20:48me and my partner thought we were going to do it for ourselves.
0:20:48 > 0:20:50And what sort of furniture do you make?
0:20:50 > 0:20:53What do you think you could put in here that would really lift it up?
0:20:53 > 0:20:57Everything - new kitchen, new wardrobes for the bedrooms,
0:20:57 > 0:20:59and we'll see what to have in your lounge as well,
0:20:59 > 0:21:01some alcove units.
0:21:01 > 0:21:04Now, did you have a chance to glance through the legal pack
0:21:04 > 0:21:07- at the auction?- No. - You didn't read it?- No.
0:21:07 > 0:21:11Why did you not do that? Did you know about the legal pack?
0:21:11 > 0:21:16No, honestly, it was all too quick, and I just thought, "Go for it."
0:21:16 > 0:21:19- So you were happy to take a bit of a chance?- Yes, that's right.
0:21:19 > 0:21:22What about the lease issues?
0:21:22 > 0:21:24It said in the catalogue it had a short lease,
0:21:24 > 0:21:26how much did you look into that?
0:21:26 > 0:21:29I called to the solicitor, and they said there is a chance
0:21:29 > 0:21:32we could extend it after the property is registered in your name.
0:21:32 > 0:21:34There is a chance they can refuse it,
0:21:34 > 0:21:37but I always think of the positive side.
0:21:37 > 0:21:40So you said, "I'm not listening to that, I want to buy this flat."
0:21:40 > 0:21:43- So you still don't know any more information about the lease?- Yeah.
0:21:43 > 0:21:46- It could be anything at all. - It could be.
0:21:46 > 0:21:49# Don't worry
0:21:49 > 0:21:51# Be happy
0:21:51 > 0:21:53# Don't worry, be happy now... #
0:21:53 > 0:21:57Despite the unknown cost of removing the lease, Slava is
0:21:57 > 0:22:01cool as a cucumber and sees this as more
0:22:01 > 0:22:05of an experience-building project rather than a money-making one.
0:22:05 > 0:22:07I just hope he doesn't end up out of pocket.
0:22:07 > 0:22:08What are you going to be doing?
0:22:08 > 0:22:12Renovate it, put some furniture in there, freshen it up
0:22:12 > 0:22:15as much as we can, with the budget as low as we can as well.
0:22:15 > 0:22:18OK, so what is your budget?
0:22:18 > 0:22:21The budget, I would think around 10,000, something like that.
0:22:21 > 0:22:24- That is pretty low.- Wow, £10,000!
0:22:24 > 0:22:27Maybe more, we have all this extra cash if we need some,
0:22:27 > 0:22:29but this is the ideal.
0:22:29 > 0:22:32OK, so £10,000 budget, you're going to change the kitchen,
0:22:32 > 0:22:36- the bathrooms, you're going to put furniture in.- Yes.
0:22:36 > 0:22:37How long have you got to do the work here?
0:22:37 > 0:22:39I can't wait to see what you're going to do.
0:22:39 > 0:22:43- Optimistically, we've got one month.- One month!
0:22:43 > 0:22:46Wow, it's going to take you that to get all the woodchip wallpaper off.
0:22:46 > 0:22:48Yeah, we don't have that time,
0:22:48 > 0:22:50so we just going to crack on straightaway.
0:22:50 > 0:22:52And you are looking to sell this on?
0:22:52 > 0:22:55I don't know yet, maybe keep it and put it for the land,
0:22:55 > 0:22:58- and after just look for the next one.- OK.
0:22:58 > 0:23:01If the lease won't turn out, because we won't be able to sell it,
0:23:01 > 0:23:05so we're going to keep it to rent out and look for something else.
0:23:05 > 0:23:08Listen, congratulations, your first property buy, a success.
0:23:08 > 0:23:10- You need to get the lease sorted. - Yep.
0:23:10 > 0:23:12And I can't wait to see what the interior is going to
0:23:12 > 0:23:15- look like by the time you have finished with it.- Thank you.
0:23:15 > 0:23:18- Well done, congratulations. - Thank you.- Thank you.
0:23:18 > 0:23:22So, Slava seems very laid-back about what could be
0:23:22 > 0:23:23a very costly issue - that lease.
0:23:23 > 0:23:26But I think he has got himself a good rental flat,
0:23:26 > 0:23:29and I am so looking forward to seeing the bespoke furniture.
0:23:29 > 0:23:33Join me later in the programme and you can see how he gets on.
0:23:34 > 0:23:38Still to come - in Butetown, Rhymney, there's a pricey problem.
0:23:38 > 0:23:40You could be waving goodbye to thousands
0:23:40 > 0:23:43and thousands of quid just to sort that out.
0:23:45 > 0:23:47In London's Grove Park,
0:23:47 > 0:23:50not everything has gone quite to plan for Slava.
0:23:50 > 0:23:52There was lots of surprises here,
0:23:52 > 0:23:54the flooring was one of the biggest ones.
0:23:59 > 0:24:04Back now to Bury in Lancashire, which was home to this two-bed property.
0:24:04 > 0:24:07It boasted a small, rather chilly side extension,
0:24:07 > 0:24:10and had a guide price of £75,000.
0:24:12 > 0:24:15It was tired, but well-proportioned.
0:24:15 > 0:24:18However, there where a few signs of damp upstairs
0:24:18 > 0:24:20that would need some attention.
0:24:21 > 0:24:25Despite that, it did prove pretty popular on the auction day,
0:24:25 > 0:24:29eventually selling for £80,000.
0:24:29 > 0:24:30Well done, sir.
0:24:30 > 0:24:34That successful bidder was Paul, a retired science teacher and
0:24:34 > 0:24:39a novice renovator who had a small case of property developing jitters.
0:24:39 > 0:24:42- My heart was really pounding. - With excitement, maybe?
0:24:42 > 0:24:46Yeah, it was, but also, first time, first time I've been to auction,
0:24:46 > 0:24:49bought a house, and it suddenly dawns on you, "Goodness..."
0:24:49 > 0:24:51- "This is mine." - "I've got this house."
0:24:51 > 0:24:54"I've got to do something with it now."
0:24:54 > 0:24:59Yeah, it's quite frightening. But at the same time, exciting.
0:24:59 > 0:25:02# Well, I'm nervous and I'm shaking all over... #
0:25:02 > 0:25:05Helping him get over his nerves was the assistance
0:25:05 > 0:25:07of three of his four sons.
0:25:07 > 0:25:11However, with a long list of jobs to do, his £5,000 budget
0:25:11 > 0:25:13had me biting my nails.
0:25:13 > 0:25:17Paul had also planned a 10-12 week timescale,
0:25:17 > 0:25:20at the end of which he hoped to sell the property for a healthy profit
0:25:20 > 0:25:23to kick-start his property renovation prospects.
0:25:26 > 0:25:29It is now five months later, and we've returned to see
0:25:29 > 0:25:32if Paul has been able to teach this property a lesson or two.
0:25:59 > 0:26:01What a great improvement on the ground floor,
0:26:01 > 0:26:04with the extension going straight to the top of the class.
0:26:07 > 0:26:10New French doors and total redecoration
0:26:10 > 0:26:11make it far more appealing.
0:26:13 > 0:26:16And both the kitchen and living room had been neutrally decorated to
0:26:16 > 0:26:19a really high standard, with some care and attention
0:26:19 > 0:26:23paid to the fireplace, making it a lovely focal point.
0:26:25 > 0:26:28Let's see if the improvements continue upstairs.
0:26:39 > 0:26:42The damp that ran through the upstairs bedrooms has been
0:26:42 > 0:26:44given detention, and replaced with
0:26:44 > 0:26:47nice, clean lines and tasteful decoration.
0:26:49 > 0:26:52The bathroom has been cleaned up and refreshed.
0:26:52 > 0:26:56And I'm happy to say that the back garden has been fenced in
0:26:56 > 0:26:59and tidied up, and thanks to Paul's green-fingered son Andrew,
0:26:59 > 0:27:02the flowers are very much in bloom.
0:27:04 > 0:27:07So, having completed his very first project,
0:27:07 > 0:27:10I'm dying to find out how it has gone for Paul.
0:27:12 > 0:27:17Seven days a week, sort of 12 hours a day.
0:27:17 > 0:27:19For about 16 weeks.
0:27:19 > 0:27:22So it's been a long, hard slog.
0:27:22 > 0:27:25But I've enjoyed it, I've enjoyed it.
0:27:25 > 0:27:28When I started the work, it went pretty well,
0:27:28 > 0:27:32and when I got towards the end of the kitchen, I discovered
0:27:32 > 0:27:35damp in the corner where there had been a washing machine.
0:27:35 > 0:27:37On further investigation,
0:27:37 > 0:27:40I realised that the skirting board was rotten,
0:27:40 > 0:27:43there were three or four bits of floorboard that were rotten,
0:27:43 > 0:27:48and then underneath there were three sections of joists that had
0:27:48 > 0:27:51also been affected by the rot.
0:27:51 > 0:27:55So I was absolutely gutted on discovering that.
0:27:55 > 0:27:59But the bits of joist have been cut out and replaced,
0:27:59 > 0:28:02and the floorboards are being replaced.
0:28:02 > 0:28:06But it was a disappointment and a big blow,
0:28:06 > 0:28:08and it took a couple of days to get over that.
0:28:11 > 0:28:15# Whoa-whoa, it is not easy... #
0:28:17 > 0:28:22Property developing certainly can be a cruel and fickle business.
0:28:22 > 0:28:25And for Paul, it's been a fairly steep learning curve.
0:28:25 > 0:28:29However, he rolled with the punches and got the floor fixed,
0:28:29 > 0:28:33along with a completely new central heating system, new guttering
0:28:33 > 0:28:35and some roof work to fix the damp.
0:28:35 > 0:28:39But I doubt there is much of that £5,000 budget left.
0:28:39 > 0:28:44From £5,000, I spent just over £10,000,
0:28:44 > 0:28:50and restored the house to its former glories, I hope to think.
0:28:50 > 0:28:54I was very fortunate that, during the project, my son JP gave me
0:28:54 > 0:29:00a hand with the electrical work, and Andrew, my youngest son, gave me
0:29:00 > 0:29:04a hand tidying up the garden and getting that looking a lot better.
0:29:06 > 0:29:08Although there was a fair bit of extra work
0:29:08 > 0:29:10that Paul hadn't accounted for,
0:29:10 > 0:29:12he still managed - with the help of his sons
0:29:12 > 0:29:15and a good team of tradesmen - to get it all done in 18 weeks.
0:29:19 > 0:29:22Well, with his first venture under his belt
0:29:22 > 0:29:25and a total investment including the purchase price of
0:29:25 > 0:29:29just over £90,000, Paul will be eager to hear the thoughts
0:29:29 > 0:29:31and valuations of two local estate agents.
0:29:33 > 0:29:37Well, first impression, first visit to the property, is good.
0:29:37 > 0:29:41Come in, it's bright, it's neutral, still leaves the buyer
0:29:41 > 0:29:44or the tenant the ability to put their own stamp on the property.
0:29:44 > 0:29:46Yeah, very good impression.
0:29:46 > 0:29:50I've had a look around, the standard of finish on this property
0:29:50 > 0:29:53is really good, I think it's a good selling point, I think
0:29:53 > 0:29:56it's been finished off excellent, to a good standard.
0:29:56 > 0:29:58They're impressed,
0:29:58 > 0:30:01but will ex-schoolteacher Paul's work get top marks?
0:30:01 > 0:30:04Let's hear rental figures first.
0:30:04 > 0:30:06I think this property could achieve
0:30:06 > 0:30:08£550 per-calendar-month on the rental market.
0:30:08 > 0:30:10I think in the rental market today,
0:30:10 > 0:30:16the property would be worth between £600 and £650 per-calendar-month.
0:30:16 > 0:30:17That's very pleasing really.
0:30:17 > 0:30:20I hadn't thought about renting it out,
0:30:20 > 0:30:23but if I were to consider that, yeah,
0:30:23 > 0:30:26they're both encouraging, particularly the second one.
0:30:26 > 0:30:30Well, if Paul did achieve that top rental value of £650
0:30:30 > 0:30:35per-calendar-month, that would mean a yield of over 8.5%.
0:30:35 > 0:30:38But Paul has always wanted to sell.
0:30:38 > 0:30:42I'd look to achieve £110-115,000 on the sales market for this property.
0:30:42 > 0:30:46If I was putting this property on the sales market,
0:30:46 > 0:30:49I would value it at around £120,000.
0:30:51 > 0:30:54If we take the middle number of £115,000,
0:30:54 > 0:30:58that would mean a pre-tax profit of 25 grand.
0:30:58 > 0:31:01Which, for a first attempt at property renovation,
0:31:01 > 0:31:05is really pretty good going, and leaves Paul all smiles.
0:31:07 > 0:31:11If I get 110 or 115, I'll be absolutely delighted with it.
0:31:13 > 0:31:17# What a beautiful day, hey-hey
0:31:17 > 0:31:20# A beautiful day
0:31:22 > 0:31:28# Nothing is impossible in my all-powerful mind... #
0:31:28 > 0:31:31This is Butetown in Caerphilly, southeast Wales,
0:31:31 > 0:31:34just four miles west through Tredegar
0:31:34 > 0:31:36and about a mile north of Rhymney.
0:31:37 > 0:31:40Well, Butetown was a model village built
0:31:40 > 0:31:42in the early part of the 19th century
0:31:42 > 0:31:45to house workers for the local ironworks.
0:31:45 > 0:31:47And it really is adorable.
0:31:47 > 0:31:51Built to a very high standard, with its own shops, school,
0:31:51 > 0:31:54church - what a great place to live.
0:31:57 > 0:32:01The Caerphilly countryside is just stunning, and Butetown, which was
0:32:01 > 0:32:05built in around 1830, centres around three rows of houses,
0:32:05 > 0:32:08all built using locally quarried stone.
0:32:10 > 0:32:13Well, quite a lot of the original properties survive,
0:32:13 > 0:32:18especially in the conservation area, and they really are rather lovely.
0:32:18 > 0:32:21This one came up for auction,
0:32:21 > 0:32:25a three-bed mid-terrace at a guide price of £59,000.
0:32:27 > 0:32:29Looks lovely, let's take a look inside.
0:32:31 > 0:32:36The anticipation is always so high with these kind of properties.
0:32:36 > 0:32:38What am I going to find?
0:32:38 > 0:32:40Ooh, it's nice.
0:32:40 > 0:32:42The first thing that greets you
0:32:42 > 0:32:46when you come through the door is this amazing fireplace.
0:32:46 > 0:32:52This whole natural stone thing can be a bit too much occasionally.
0:32:52 > 0:32:55This just feels authentic, with this old beam here,
0:32:55 > 0:33:01wood-burning stove there, it just creates exactly
0:33:01 > 0:33:03what you'd hope for when you walk through the door,
0:33:03 > 0:33:06a real characterful feel. It's not a bad-sized room.
0:33:06 > 0:33:11Two small windows, but it's dual aspect, so it doesn't feel dark.
0:33:11 > 0:33:17Not a massive head height, but you wouldn't expect that. And... Yeah.
0:33:17 > 0:33:21Few signs of damp on this wall here, so that needs to be sorted out.
0:33:21 > 0:33:24But then you go through here to the kitchen,
0:33:24 > 0:33:26and obviously some kind of extension on the back,
0:33:26 > 0:33:29probably only single-storey, but it's not in bad condition.
0:33:29 > 0:33:31Long and thin, sort of galley-style.
0:33:31 > 0:33:35You could live with that. All in all, a very good start.
0:33:35 > 0:33:39# A cottage for sale... #
0:33:39 > 0:33:42I certainly wasn't expecting it to be as bright as it is
0:33:42 > 0:33:46in here, but will the sun keep shining on the next floor up?
0:33:47 > 0:33:50Up here on the first floor, it does feel a little bit
0:33:50 > 0:33:55more constricted, the head height is pretty, erm, non-existent.
0:33:55 > 0:33:59And a few signs of damp in the bedroom there,
0:33:59 > 0:34:03and then into the bathroom, it's a good size, you got a bath
0:34:03 > 0:34:08and a shower, it's kind of cute, but this is where
0:34:08 > 0:34:10the whole cottagey thing starts to come in,
0:34:10 > 0:34:14because we've got some serious sloping going on.
0:34:14 > 0:34:18Handy piece of tape, let's put that there.
0:34:19 > 0:34:25As you can see...It's MAJORLY sloping that way.
0:34:25 > 0:34:29Whether that's historic, whether that's recent settlement,
0:34:29 > 0:34:32whether it's a problem with the floorboards over there,
0:34:32 > 0:34:34the joists, I don't know, it needs investigating.
0:34:34 > 0:34:37And it's one of those things, once you start poking about,
0:34:37 > 0:34:40you don't know quite what you're going to find.
0:34:40 > 0:34:45But one thing you will find for sure in this property is a lot of room.
0:34:45 > 0:34:49Up another flight of stairs and you've got two more bedrooms.
0:34:49 > 0:34:53A smaller one at the back and a larger one to the front.
0:34:53 > 0:34:54This front bedroom has the added bonus
0:34:54 > 0:34:56of an en-suite loo - very handy.
0:34:56 > 0:34:59And believe it or not, there's more.
0:35:01 > 0:35:05Up some very steep steps that won't be appropriate for everyone,
0:35:05 > 0:35:07there's an attic room.
0:35:07 > 0:35:09Perfect for storing away all that clutter
0:35:09 > 0:35:12that comes with modern living.
0:35:14 > 0:35:16Well, here at the back of the property,
0:35:16 > 0:35:20there's some good news and some very bad news. The good news?
0:35:20 > 0:35:22You've actually got quite a nice little garden,
0:35:22 > 0:35:25and also rear access, so you can bring your car in there.
0:35:25 > 0:35:30So that's good, what's bad is up there on the roof.
0:35:30 > 0:35:33You can see, the chimney stack is covered in, well,
0:35:33 > 0:35:36plastic and some kind of reinforcing thingmyjob.
0:35:36 > 0:35:40What happened was, the chimney became dangerous
0:35:40 > 0:35:44and the council had to step in to do the work to repair it.
0:35:44 > 0:35:47It says in the legal pack that whoever buys this has to
0:35:47 > 0:35:50repay the council the money for those repairs.
0:35:50 > 0:35:52But when the repaired it, they didn't repair it fully,
0:35:52 > 0:35:55so you're going to have to do a proper renovation job
0:35:55 > 0:35:57on that chimney stack.
0:35:57 > 0:35:58"So what?", you might say.
0:35:58 > 0:36:03Well, remember, this is a Grade II-listed property,
0:36:03 > 0:36:06and therefore that has to be done to Grade II-listed standards.
0:36:06 > 0:36:11It's a time-consuming, specialist and therefore very expensive job.
0:36:11 > 0:36:13You could be waving be goodbye to...
0:36:13 > 0:36:17phew, thousands and thousands of quid just to sort that out.
0:36:17 > 0:36:19# La-la-la
0:36:19 > 0:36:22# If you want to do something now
0:36:22 > 0:36:24# Do it right... #
0:36:24 > 0:36:26Well, no-one said taking on a Grade II-listed property
0:36:26 > 0:36:30in a conservation area would be easy.
0:36:30 > 0:36:32And it looks like you'll have to evict a couple of
0:36:32 > 0:36:34feathered squatters too.
0:36:34 > 0:36:37So, at a guide price of £59,000,
0:36:37 > 0:36:39is it worth the hassle?
0:36:39 > 0:36:43We asked a local estate agent for her opinion.
0:36:43 > 0:36:45I've had a look around this property and I love it.
0:36:45 > 0:36:49It's exactly what I expected it to be.
0:36:49 > 0:36:54Traditional Welsh village type cottage.
0:36:54 > 0:36:57The person who buys this property is going to want
0:36:57 > 0:37:01that traditional...history.
0:37:01 > 0:37:05This is fabulous, I love it.
0:37:05 > 0:37:09Well, the estate agent is enthused, but what about that chimney?
0:37:09 > 0:37:12As far as the chimney is concerned, yes, it's a big job,
0:37:12 > 0:37:16but it's not that big, I don't think it's going to put anybody off,
0:37:16 > 0:37:18it certainly wouldn't put me off.
0:37:18 > 0:37:22With that in mind, what kind of sales figures are we looking at?
0:37:22 > 0:37:25If this property was done up to a decent standard,
0:37:25 > 0:37:30then I would be looking to put this on the open market for £110,000.
0:37:30 > 0:37:35- And rental?- We'd be looking at £450 per-calendar-month.
0:37:37 > 0:37:41Well, this really is a charming little property
0:37:41 > 0:37:44in a lovely location, a rare auction find indeed.
0:37:44 > 0:37:47Let's see who spotted it when it went under the hammer.
0:37:47 > 0:37:50Three-bedroom Grade II-listed mid-terrace cottage,
0:37:50 > 0:37:53make it £50,000, start me. Got to be 50.
0:37:53 > 0:37:55Make it 45 then, if you like, I'm in your hands,
0:37:55 > 0:37:57you start me where you want.
0:37:57 > 0:37:59£45,000, wave your hand. Thank you, 45, I got you.
0:37:59 > 0:38:03At 45 there, 45,000, and six now can I see?
0:38:03 > 0:38:05At 45, 46 now I'm looking for.
0:38:05 > 0:38:0646 - 47, sir. 48?
0:38:06 > 0:38:1148, 49, give you all a chance. And 50.
0:38:11 > 0:38:16With the bids flying in, we leave the auction and rejoin at 64,000.
0:38:16 > 0:38:1964,500? Thank you.
0:38:19 > 0:38:2264,500, now to you at 65 if you like? No.
0:38:22 > 0:38:28At £64,500, at £64,500 then, for the first time...
0:38:28 > 0:38:29second time...
0:38:29 > 0:38:32third and last time, 64... 65.
0:38:32 > 0:38:3465, 65,500...
0:38:34 > 0:38:37No. 65 then to you, or half to you if you like.
0:38:37 > 0:38:42No. At £65,000 then, for the first time...
0:38:42 > 0:38:45second time...third and last time, at £65,000...
0:38:45 > 0:38:49- HE BANGS HAMMER - Well done, sir, your number, please.
0:38:49 > 0:38:52After quite a battle, the successful bid goes to Ron.
0:38:52 > 0:38:54Ron, who's an optometrist,
0:38:54 > 0:38:58has developed a couple of properties before, one of which
0:38:58 > 0:39:01he lives in and is just a stone's throw away from this one -
0:39:01 > 0:39:03quite literally.
0:39:03 > 0:39:06- Ron, good to meet you.- Hi there. - Congratulations!- Thanks very much.
0:39:06 > 0:39:09Well, no, you deserve it. Tell me why you wanted to buy this place?
0:39:09 > 0:39:11- Well, I just live over the road.- Oh.
0:39:11 > 0:39:16And I thought, "It's nice and easy, just over the road,
0:39:16 > 0:39:18"I'll just buy it."
0:39:18 > 0:39:21- So that's what happened. - Are you a property developer then?
0:39:21 > 0:39:22Erm, the one I live in over the road,
0:39:22 > 0:39:25I did actually buy up as an old museum,
0:39:25 > 0:39:27and then I changed it into two houses
0:39:27 > 0:39:29and ended up living in one house.
0:39:29 > 0:39:32- So it was a previously a museum? - It was.- Ah.
0:39:32 > 0:39:34So what do you know about this little development?
0:39:34 > 0:39:38- Cos it's really cute. - Very lovely, isn't it?
0:39:38 > 0:39:43It was built in 1827 for ironworkers, and they had
0:39:43 > 0:39:48a foundry, and then they worked and made the iron and everything here.
0:39:48 > 0:39:52- They ran it for about ten years, and then stopped.- Right.
0:39:52 > 0:39:54That's why it's just a few houses, not very many houses.
0:39:54 > 0:39:57So was the idea to create almost a model community?
0:39:57 > 0:40:02Yeah, it is a model community, it's got a church, a school, a pub...
0:40:02 > 0:40:04It's really lovely.
0:40:04 > 0:40:08Ron, who's originally from nearby Monmouth, obviously loves
0:40:08 > 0:40:11the area, and felt compelled to buy the property
0:40:11 > 0:40:13when it came up at auction, although he did get
0:40:13 > 0:40:15a slight case of auction fever
0:40:15 > 0:40:17and paid a little more than he'd planned.
0:40:17 > 0:40:22- Are you happy, in retrospect?- I am actually. I thought, you know...
0:40:22 > 0:40:24It's quite nicely done up,
0:40:24 > 0:40:27I've got a major problem with the chimney,
0:40:27 > 0:40:30the chimney has got to be taken out and these things called
0:40:30 > 0:40:33chimney trays have got to be put in and put back up.
0:40:33 > 0:40:35So that's a really major expense.
0:40:35 > 0:40:38But apart from that, the house itself is in good nick.
0:40:38 > 0:40:40It just needs painting really and a new bathroom,
0:40:40 > 0:40:43or maybe the kitchen doing or what have you,
0:40:43 > 0:40:46but it's generally, yes, I'm really pleased actually.
0:40:46 > 0:40:48- And then obviously we're listed. - Yes.
0:40:48 > 0:40:51So what do you know about Grade II-listed properties?
0:40:51 > 0:40:54Well, I have had - because I did the museum over the way -
0:40:54 > 0:40:57I have had a lot of interaction with the conservation officer.
0:40:57 > 0:41:01And she says, "Yeah, you'll need listed buildings approval,
0:41:01 > 0:41:03"but we probably can do it because it's an emergency,
0:41:03 > 0:41:08"it's causing a big problem inside the building itself",
0:41:08 > 0:41:10so she seemed fairly positive about it.
0:41:10 > 0:41:13How much is it going to cost to get that sorted?
0:41:13 > 0:41:16I don't know, I'd think six, eight thousand, might be a bit more,
0:41:16 > 0:41:18- I'm not sure. - So what's the timescale?
0:41:18 > 0:41:23About six months. Hopefully...
0:41:23 > 0:41:25about six months.
0:41:25 > 0:41:26At this stage, Ron isn't sure
0:41:26 > 0:41:29whether he will rent or sell the property,
0:41:29 > 0:41:31but he has identified a budget of £25,000,
0:41:31 > 0:41:33including the chimney cost,
0:41:33 > 0:41:36with professionals doing the bulk of the work.
0:41:37 > 0:41:40And Ron doesn't want to stop at this property.
0:41:40 > 0:41:42Buying more in the street or...?
0:41:42 > 0:41:45Yeah, I was just thinking, if I kept the other one,
0:41:45 > 0:41:48I'd actually probably be able to buy a hotel or build a hotel soon,
0:41:48 > 0:41:50so I'd have those two.
0:41:50 > 0:41:53There's another one that's a bit derelict,
0:41:53 > 0:41:56and they do come up, and I do like them.
0:41:56 > 0:41:59Because I know the buildings, I can deal with them
0:41:59 > 0:42:03more straightforwardly rather than doing stuff I don't know about.
0:42:03 > 0:42:06- Good. Listen, congratulations. - Thanks very much.- Well done.
0:42:06 > 0:42:08- Thank you.- And I look forward to seeing how you get on.
0:42:08 > 0:42:10Thanks very much.
0:42:10 > 0:42:11THEY CHUCKLE
0:42:11 > 0:42:14There you go, Ron the optometrist,
0:42:14 > 0:42:16not being at all short-sighted,
0:42:16 > 0:42:19showing clear vision buying this place,
0:42:19 > 0:42:22and the only potential hiccup could be the problems with that chimney.
0:42:22 > 0:42:26Hopefully that won't make a SPECTACLE of him. Ooh...
0:42:26 > 0:42:29You can find out how he gets on later in the show.
0:42:33 > 0:42:36Well, how much work somebody does to a property
0:42:36 > 0:42:38really depends on what they are going to use it for.
0:42:38 > 0:42:40If it's somewhere to live, well,
0:42:40 > 0:42:43that would be different to if somewhere they're going to rent out.
0:42:43 > 0:42:47Yeah, so far we've seen one outcome, but what about the other two?
0:42:47 > 0:42:48Let's find out.
0:42:52 > 0:42:55Back now to south-east London, and the area of Grove Park,
0:42:55 > 0:42:59which was home to this two-bed ground-floor flat
0:42:59 > 0:43:01with a shared garden.
0:43:01 > 0:43:03It had, for London, a low guide price
0:43:03 > 0:43:06of just £125,000 plus.
0:43:08 > 0:43:10It was a bit of a model property that needed a fair bit of work,
0:43:10 > 0:43:14but it appeared to be structurally sound and, as I said,
0:43:14 > 0:43:17it had that golden ticket of a shared garden.
0:43:17 > 0:43:20However, after a little research,
0:43:20 > 0:43:23I soon discovered it had a nasty little secret.
0:43:24 > 0:43:28One of the reasons that this flat went to auction was
0:43:28 > 0:43:32probably because it has a very short lease of only 56 years.
0:43:32 > 0:43:35Not good news, and a costly problem to sort out.
0:43:37 > 0:43:40# I don't know what this world is coming to
0:43:40 > 0:43:42# I just can't rely on you
0:43:42 > 0:43:44# Just can't rely on you... #
0:43:44 > 0:43:48The short lease means that you could struggle to get a mortgage, which,
0:43:48 > 0:43:52in turn, means the value of the property is significantly affected.
0:43:52 > 0:43:55Plus, you're reliant on negotiations with the freeholder
0:43:55 > 0:43:57when it comes to renewing said lease.
0:43:57 > 0:44:00However, the bidders were not put off on auction day,
0:44:00 > 0:44:03with the property selling for 141,000.
0:44:05 > 0:44:07Sold to you, sir, at 141.
0:44:07 > 0:44:11The successful bidder was Slava, a local furniture maker who had
0:44:11 > 0:44:14bought this property with business partner Macin.
0:44:14 > 0:44:17This would be Slava's first venture into
0:44:17 > 0:44:22property renovation in the UK, and I'm afraid he leapt in feet-first.
0:44:22 > 0:44:25Did you have a chance to glance through the legal pack
0:44:25 > 0:44:28- at the auction?- No. - So you didn't read it?- No.
0:44:28 > 0:44:32Why did you not do that? Did you know about the legal pack?
0:44:32 > 0:44:36No, honestly, it was just all too quick, and I thought,
0:44:36 > 0:44:39- "Just go for it."- So you were happy to take a bit of a chance?
0:44:39 > 0:44:41Yes, that's right.
0:44:41 > 0:44:42Slava was very laid-back
0:44:42 > 0:44:45and didn't seem too concerned about that short lease.
0:44:45 > 0:44:48He had plans to incorporate his bespoke furniture-making skills
0:44:48 > 0:44:51into the project to save on the budget,
0:44:51 > 0:44:56which he'd set at just £10,000, with a timescale of only a month.
0:44:58 > 0:45:01It's now four-and-a-half months later,
0:45:01 > 0:45:04and thanks to work on a neighbouring flat,
0:45:04 > 0:45:08Slava's property is somewhat hidden under the scaffolding.
0:45:08 > 0:45:09However, stepping in,
0:45:09 > 0:45:12we'll find that not everything has gone to plan.
0:45:24 > 0:45:27Now, clearly this remains a work in progress,
0:45:27 > 0:45:29but what we can see are the beginnings
0:45:29 > 0:45:31of a very impressive layout change.
0:45:31 > 0:45:35The wall between the kitchen and the former front bedroom has been
0:45:35 > 0:45:39removed to create what is going to be a very attractive kitchen/diner.
0:45:50 > 0:45:53What was once the living room has now been turned into
0:45:53 > 0:45:56a front bedroom, as Slava explains.
0:45:56 > 0:45:58So, if you remember, it used to be a living room,
0:45:58 > 0:46:04now it's a totally new bedroom with a new flooring, replastered,
0:46:04 > 0:46:08new wardrobes to be done, need to hang some doors on it, to finish.
0:46:08 > 0:46:10As you can see, new lighting and everything else.
0:46:10 > 0:46:13Throughout the property, Slava and Macin have used
0:46:13 > 0:46:16their furniture-making skills to great effect,
0:46:16 > 0:46:20creating what will be a unique and attractive property.
0:46:23 > 0:46:27The bathroom is also yet to be completed, as is the back bedroom.
0:46:31 > 0:46:33For the time being, Slava has left the back garden
0:46:33 > 0:46:37as it is, preferring to concentrate on the interior.
0:46:39 > 0:46:44It's fair to say that this has been a tricky first project for Slava,
0:46:44 > 0:46:46with one or two bumps in the road.
0:46:46 > 0:46:48There was lots of surprises here,
0:46:48 > 0:46:50the flooring was one of the biggest ones.
0:46:50 > 0:46:52All of the joists were rotten,
0:46:52 > 0:46:54so we had to take them off and put the new ones in,
0:46:54 > 0:46:57put the level in and put the new flooring,
0:46:57 > 0:46:59so it's new flooring here, everything is new.
0:46:59 > 0:47:02All the furniture here is bespoke, everything made by us.
0:47:02 > 0:47:05We thought we could re-use some of the old ones,
0:47:05 > 0:47:07but we decided to use everything new.
0:47:07 > 0:47:11And the kitchen, bathroom units, the wardrobes to be done,
0:47:11 > 0:47:15and some units here, all of the shelves, everything pretty much.
0:47:15 > 0:47:19Thanks to builders' schedules, and the issues Slava has
0:47:19 > 0:47:21already mentioned, the timeframe has gone from
0:47:21 > 0:47:23one to four-and-a-half months.
0:47:23 > 0:47:27Plus, thanks to the layout change and floor issues, as it stands now
0:47:27 > 0:47:32his budget has doubled from £10,000 to around £20,000!
0:47:32 > 0:47:35But what I'm dying to know is -
0:47:35 > 0:47:38has he been able to extend that lease?
0:47:38 > 0:47:41We tried to contact the landlords, we didn't have any luck so far.
0:47:41 > 0:47:45Hopefully it's going to change in the next few weeks.
0:47:45 > 0:47:48Fingers crossed. If we can extend the lease, we can easily sell it.
0:47:48 > 0:47:50It's going to be more chilled for other people.
0:47:50 > 0:47:54But if we won't be able to extend it, we can rent it out.
0:47:54 > 0:47:56At this point, Slava doesn't seem too concerned
0:47:56 > 0:47:59and is forging on with the renovation.
0:47:59 > 0:48:02But without that lease extension, does it make financial sense?
0:48:02 > 0:48:06As it stands now, including the purchase price,
0:48:06 > 0:48:10Slava has invested £161,000.
0:48:12 > 0:48:15What did two local estate agents think of this work in progress
0:48:15 > 0:48:17and its potential?
0:48:17 > 0:48:19The look of the property is excellent, I think
0:48:19 > 0:48:21it's exactly what people would want.
0:48:21 > 0:48:23It's probably a bit above what people would want in
0:48:23 > 0:48:26this area actually, I think it would rent incredibly well,
0:48:26 > 0:48:29being this sort of standard, and also sell very well.
0:48:29 > 0:48:33The changes made to the property is very, very good.
0:48:33 > 0:48:36Different, very modern and very desirable.
0:48:36 > 0:48:39Having a short lease on the property is going to have
0:48:39 > 0:48:42a detrimental effect to its value, so it's probably going to affect
0:48:42 > 0:48:45the value somewhere in the region of £25-30,000.
0:48:45 > 0:48:48Wow, that's a very big chunk.
0:48:48 > 0:48:51Fingers crossed Slava will be able to track down the landlord
0:48:51 > 0:48:55and get that lease extended for a reasonable amount.
0:48:55 > 0:48:59Let's hear what the valuations are with and without that extension.
0:48:59 > 0:49:03With the current lease as it is, I feel the property is worth
0:49:03 > 0:49:05in the region of around £175,000.
0:49:05 > 0:49:07With an extended lease,
0:49:07 > 0:49:11I believe the property could achieve in the region of around £235,000.
0:49:11 > 0:49:13This property valued with a short lease would be
0:49:13 > 0:49:16approximately £195,000.
0:49:16 > 0:49:19With the lease extended to possibly 125 years, it would
0:49:19 > 0:49:22be approximately £230,000, maybe £235,000.
0:49:22 > 0:49:26As I thought, a big difference between the valuations,
0:49:26 > 0:49:29meaning to make a big profit on his first project,
0:49:29 > 0:49:32Slava will need to get that lease extended.
0:49:32 > 0:49:35Till then though, he is prepared to rent.
0:49:35 > 0:49:39The property would achieve in the region of around £12-13,000
0:49:39 > 0:49:41per-calendar-month.
0:49:41 > 0:49:44The rental for this property would be approximately
0:49:44 > 0:49:46£1,300 per-calendar-month.
0:49:46 > 0:49:50That figure of £1,300 per calendar month means Slava's
0:49:50 > 0:49:53current investment could create a yield
0:49:53 > 0:49:55of just over 9%, but of course,
0:49:55 > 0:49:59the property isn't finished just yet, so this may change.
0:49:59 > 0:50:02But no doubt it will still be a healthy yield.
0:50:02 > 0:50:05So, with Slava nearly done with his first property,
0:50:05 > 0:50:08and I'm happy to say, keen to do another one,
0:50:08 > 0:50:12what advice would he give any other prospective property developers?
0:50:13 > 0:50:18You have to spend more time researching. Preparation, homework.
0:50:24 > 0:50:27We head back now to south-east Wales,
0:50:27 > 0:50:31and the former model village of Butetown.
0:50:31 > 0:50:34Sat within this conservation area
0:50:34 > 0:50:37was this three-bed Grade II-listed building.
0:50:37 > 0:50:41A beautiful, character-filled house, that was in need of some TLC,
0:50:41 > 0:50:45especially when you cast your eyes skywards.
0:50:45 > 0:50:48You can see the chimney stack is covered in, well,
0:50:48 > 0:50:52plastic and some kind of reinforcing thingymyjob going round it.
0:50:52 > 0:50:55What happened was, the chimney became dangerous
0:50:55 > 0:50:59and the council had to step in to do the work to repair it.
0:50:59 > 0:51:01It says in the legal pack that whoever buys us
0:51:01 > 0:51:05has to repay the council the money for those repairs.
0:51:05 > 0:51:07But, when they repaired it, they didn't repair it fully,
0:51:07 > 0:51:10so you are going to have to do a proper renovation job
0:51:10 > 0:51:12on that chimney stack.
0:51:12 > 0:51:14Thanks to this being a listed building,
0:51:14 > 0:51:18fixing the chimney would not be a straightforward task.
0:51:18 > 0:51:19There are all sorts of guidelines
0:51:19 > 0:51:23and regulations you must adhere to, and never mind the cost of it!
0:51:26 > 0:51:30Despite the chimney problems, plenty of people where interested
0:51:30 > 0:51:33on auction day, with a successful bid of £65,000
0:51:33 > 0:51:35going to optometrist Ron.
0:51:35 > 0:51:39# Oh, if you find the time, please come and stay a while
0:51:39 > 0:51:42# In my beautiful neighbourhood
0:51:42 > 0:51:45# My neighbourhood, my-my-my-my
0:51:45 > 0:51:46# Beautiful neighbourhood. #
0:51:48 > 0:51:51To say Ron was a local would be an understatement.
0:51:51 > 0:51:54He actually lives across the road.
0:51:54 > 0:51:56He was confident of fixing the chimney,
0:51:56 > 0:51:58and had plans for a simple renovation scheme
0:51:58 > 0:52:02for the rest of the property, with a budget of £25,000
0:52:02 > 0:52:04and a timescale of six months.
0:52:06 > 0:52:09Well, we've returned eight months later, and the first thing
0:52:09 > 0:52:12I notice is that the chimney is still looking
0:52:12 > 0:52:14a little worse for wear.
0:52:14 > 0:52:17But before we get onto that, let's step inside.
0:52:30 > 0:52:33The brand-new kitchen is less cluttered
0:52:33 > 0:52:36and well-decorated, with new laminate flooring.
0:52:37 > 0:52:40The living room is neutrally decorated,
0:52:40 > 0:52:43giving central focus to that charming old fireplace.
0:52:47 > 0:52:49Upstairs, and that sloping floor
0:52:49 > 0:52:51in the bathroom has been straightened out.
0:52:54 > 0:52:58And the bedroom next door no longer shows signs of damp.
0:53:00 > 0:53:04Time to see what transformations have occurred on the next floor up.
0:53:13 > 0:53:16Where there were once two bedrooms and steep stairs
0:53:16 > 0:53:17to a dilapidated attic space,
0:53:17 > 0:53:21now stands a lovely double bedroom with en suite.
0:53:21 > 0:53:22Ron explains further.
0:53:23 > 0:53:28So, as you can see here, it's totally different from before.
0:53:28 > 0:53:32We had some stairs here and two rooms here,
0:53:32 > 0:53:34the main room here and the other here.
0:53:34 > 0:53:37And underneath the stairs was a funny little toilet.
0:53:37 > 0:53:41So we got rid of all of that and we got this nice, open space,
0:53:41 > 0:53:44ready for people to live in,
0:53:44 > 0:53:49and it's got a lovely en suite here, bed would be here,
0:53:49 > 0:53:53walk into the thing, have a lovely shower in the beautiful new shower.
0:53:53 > 0:53:56It's unusual to reduce a property's bedrooms,
0:53:56 > 0:54:00but in this case, Ron felt a bigger bedroom with a good finish
0:54:00 > 0:54:04and a lovely en suite was better than two smaller bedrooms.
0:54:04 > 0:54:08Plus, creating a hatch leading to storage space in the loft
0:54:08 > 0:54:11is a good bit of rejigging.
0:54:11 > 0:54:14Outside, the garden has been fenced off and tidied up,
0:54:14 > 0:54:18with the back here being given a lick of paint.
0:54:18 > 0:54:20But what about that chimney?
0:54:20 > 0:54:26I was going to do that, but it was very expensive, about £10,000,
0:54:26 > 0:54:30and it has been repaired by putting a tarpaulin over it,
0:54:30 > 0:54:34which looks awful, but there is going to be a grant,
0:54:34 > 0:54:38I hope, in this area for these lovely houses to be redone
0:54:38 > 0:54:42in Welsh slate and all the chimneys will be repaired.
0:54:42 > 0:54:46Because all of them suffer from this leaking problem.
0:54:46 > 0:54:47My house also has the problem,
0:54:47 > 0:54:51so I knew about it and I also knew that there was this grant
0:54:51 > 0:54:54coming up, so we're all keeping our fingers crossed that it will occur.
0:54:54 > 0:54:56Whether it does, I don't know.
0:54:56 > 0:54:59Contrary to what he originally planned,
0:54:59 > 0:55:00Ron did a lot of the work himself,
0:55:00 > 0:55:05including creating secondary glazing on the sash windows.
0:55:05 > 0:55:08But, due to some delays in getting tradesman in
0:55:08 > 0:55:10for the more skilled jobs,
0:55:10 > 0:55:13his timescale went from six months to over eight.
0:55:13 > 0:55:15However, has his DIY-ing
0:55:15 > 0:55:20and delay on chimney repairs kept down his original budget of 25,000?
0:55:20 > 0:55:24It cost about 18 grand without the chimney.
0:55:24 > 0:55:27So taking the ten grand out for the chimney, which was how much
0:55:27 > 0:55:35I got estimates for, I'm over, and that's not including the legal fees.
0:55:37 > 0:55:41Ron also had to repay the council for the work they did on
0:55:41 > 0:55:43the chimney, which amounted to £1,200,
0:55:43 > 0:55:47making the total spend here 84,200.
0:55:49 > 0:55:52Will two local estate agents think it's a wise investment?
0:55:54 > 0:55:55I think it's a lovely property.
0:55:55 > 0:55:58They've done a good level of work here, kept it in keeping,
0:55:58 > 0:56:02it's all fairly straightforward, the classic sort of blank canvas.
0:56:02 > 0:56:05I particularly like the addition of an en-suite, I think
0:56:05 > 0:56:08that's very desirable, especially as it's going to aim towards
0:56:08 > 0:56:11a young couple, that's the sort of thing they'd be looking for.
0:56:11 > 0:56:13I also think the renovation is very sympathetic
0:56:13 > 0:56:15and it's been done to a very high standard.
0:56:15 > 0:56:19With the agents impressed and Ron renting at least until
0:56:19 > 0:56:21the chimney is fixed, it will be interesting
0:56:21 > 0:56:24to hear their valuations. Rental first.
0:56:24 > 0:56:28I'd be looking to market this at about £500 per-calendar-month.
0:56:28 > 0:56:33It would rent for about £500 per-calendar-month.
0:56:33 > 0:56:35When we first came to the property around eight months ago,
0:56:35 > 0:56:39the agent then predicted a rental income of around
0:56:39 > 0:56:42£450 per-calendar-month, which was for
0:56:42 > 0:56:45the original configuration of a three-bed house.
0:56:45 > 0:56:48So, reducing it to a two-bed property hasn't actually
0:56:48 > 0:56:50lowered the rental income.
0:56:50 > 0:56:55Indeed, as it stands now, Ron could command a yield of over 7%.
0:56:55 > 0:57:00However, if he does have to spend £10,000 on the chimney repairs,
0:57:00 > 0:57:03that yield will drop to just over 6%.
0:57:03 > 0:57:06So, fingers crossed for that government grant.
0:57:06 > 0:57:09That's rental, how about resale?
0:57:09 > 0:57:11I would value this somewhere between
0:57:11 > 0:57:15£100,000 and £110,000.
0:57:15 > 0:57:19And look to achieve probably over £105,000.
0:57:20 > 0:57:23I think if this property were marketed on
0:57:23 > 0:57:25the open market at the moment,
0:57:25 > 0:57:29it would sell for between £110,000 and £125,000.
0:57:29 > 0:57:33The estate agents are divided, meaning, with his current spend,
0:57:33 > 0:57:36Ron could be looking at a pre-tax profit of between
0:57:36 > 0:57:39£25,000 and nearly £36,000,
0:57:39 > 0:57:41if you take the top valuations.
0:57:41 > 0:57:44But of course, those profits all depend
0:57:44 > 0:57:45on the future of the chimney,
0:57:45 > 0:57:49and the chances of the government grant being agreed.
0:57:49 > 0:57:52So is he confident?
0:57:52 > 0:57:56It's supposed to happen in 2016.
0:57:56 > 0:57:59I suppose I am 80% confident.
0:58:02 > 0:58:04If you're thinking about visiting a property auction,
0:58:04 > 0:58:06hopefully we have given you food for thought.
0:58:06 > 0:58:08Yes, but even if you're not, there is
0:58:08 > 0:58:10a way for you to enjoy some auction action.
0:58:10 > 0:58:13And that is to join us for more Homes Under the Hammer next time.
0:58:13 > 0:58:16- See you then.- Goodbye.- Goodbye.