0:00:01 > 0:00:03Hello. The property market is different
0:00:03 > 0:00:06depending on where you are in the country, property prices,
0:00:06 > 0:00:10potential returns - there is no hard and fast rule.
0:00:10 > 0:00:12Yes. It's just as important to know the area you're buying in,
0:00:12 > 0:00:14as well as the property itself.
0:00:14 > 0:00:18Yes. And local knowledge could give you the edge.
0:00:18 > 0:00:21So why not nip down to your local auction?
0:00:46 > 0:00:49Property developing isn't always as easy as it seems.
0:00:49 > 0:00:51Sometimes it can be a walk in the park
0:00:51 > 0:00:52and you'll make a healthy profit.
0:00:52 > 0:00:54Other times, you get stuck in the mud
0:00:54 > 0:00:57with only twopence to show for all your hard work.
0:00:57 > 0:01:00Let's see what properties were bought on today's programme.
0:01:01 > 0:01:05In Kent we return to a lovely old chapel we first saw in 2010,
0:01:05 > 0:01:09and a visionary couple, but what has happened since?
0:01:09 > 0:01:10We have no more money.
0:01:11 > 0:01:14In Stoke-on-Trent, let's hope the DIY stores
0:01:14 > 0:01:17haven't run out of render, or mortar, for this end of terrace.
0:01:17 > 0:01:21It would need repointing, ASAP.
0:01:21 > 0:01:25While in Wales, this two-bedroom flat nearly has me
0:01:25 > 0:01:26running for the hills,
0:01:26 > 0:01:29but the kitchen saves the day.
0:01:29 > 0:01:31Thank goodness for that.
0:01:33 > 0:01:35All of these properties were sold at auction.
0:01:35 > 0:01:38We find out who bought them and what they paid for them
0:01:38 > 0:01:40when they went under the hammer.
0:01:46 > 0:01:49We're going way back into the Homes Under The Hammer archive now,
0:01:49 > 0:01:53to 2010, and to Goudhurst in Kent,
0:01:53 > 0:01:57a village with more than its fair share of characterful properties.
0:01:58 > 0:02:00# Take me to church
0:02:00 > 0:02:04# I'll worship like a dog at the shrine of your lies... #
0:02:04 > 0:02:06And here it is, a former chapel.
0:02:08 > 0:02:12The 19th-century building had some really attractive
0:02:12 > 0:02:16architectural features and stunning views from its elevated position.
0:02:20 > 0:02:22The acoustics...Ah! Ah!
0:02:22 > 0:02:25- HER VOICE ECHOES - I love spaces like this.
0:02:25 > 0:02:27Look at these windows!
0:02:27 > 0:02:29You can really imagine raising the floor here,
0:02:29 > 0:02:33creating a mezzanine level, so you've got two areas to live.
0:02:33 > 0:02:36It's absolutely beautiful in here.
0:02:36 > 0:02:38It was easy to see the potential of the property
0:02:38 > 0:02:41which, surprisingly, hadn't been listed.
0:02:41 > 0:02:45So, I did hope some of the original features could be saved.
0:02:45 > 0:02:49# Yeah! Amen! #
0:02:49 > 0:02:52On the side of the main chapel, this small building
0:02:52 > 0:02:56was the former Sunday school with a raised area and small kitchen.
0:02:58 > 0:02:59The proud new owners,
0:02:59 > 0:03:05after an auction bid of 290,000, were Nick and Sonia.
0:03:05 > 0:03:07Experienced developers in their own right,
0:03:07 > 0:03:11they were embarking on their second project together.
0:03:12 > 0:03:15Nick was a quantity surveyor and Sonia an accountant,
0:03:15 > 0:03:19who had also run her own building company -
0:03:19 > 0:03:22a great skill set for a big project like this.
0:03:22 > 0:03:24So, what were their plans?
0:03:24 > 0:03:27In a nutshell, we hope to turn it into a lovely family home.
0:03:27 > 0:03:29For you guys to live in?
0:03:29 > 0:03:32Um, yes. That is the likelihood at the moment.
0:03:32 > 0:03:34That we're going to live here ourselves.
0:03:34 > 0:03:37So, Sonia, what's the story behind you finding this?
0:03:37 > 0:03:40Well, we moved to Goudhurst just over a year ago,
0:03:40 > 0:03:42and my daughter's school's local.
0:03:42 > 0:03:46So I drove past this building every day taking her to school
0:03:46 > 0:03:48and noticed it was empty
0:03:48 > 0:03:52and we approached the Methodists to see if we could buy it
0:03:52 > 0:03:54but, unfortunately, at the time, they said no,
0:03:54 > 0:03:56it would have to be sold at auction.
0:03:56 > 0:03:58So we sort of followed it.
0:03:58 > 0:04:01So we have been tracking it for some time.
0:04:01 > 0:04:04The couple were already renovating another property
0:04:04 > 0:04:05in Rochester in Kent
0:04:05 > 0:04:09and were planning to finish that before starting work on the chapel.
0:04:09 > 0:04:11They were also wanting to revise the plans
0:04:11 > 0:04:16that had already been passed, which would inevitably cause delay.
0:04:16 > 0:04:18Would it be worth the wait?
0:04:19 > 0:04:24Our view is that it's not the right design for this building.
0:04:24 > 0:04:25Why do you say that?
0:04:25 > 0:04:29Erm, because it doesn't do justice to the space that's here.
0:04:29 > 0:04:33Basically, they're intending to put a floor all the way through here
0:04:33 > 0:04:36and ruin the potential of having some double height space in it.
0:04:36 > 0:04:40It virtually demolishes all of the Sunday School room at the back,
0:04:40 > 0:04:42which we don't think is also appropriate.
0:04:42 > 0:04:45We have an architect on board who is starting to draw up...
0:04:45 > 0:04:48Hopefully, interpret our vision for it
0:04:48 > 0:04:50and put his own mark on it, too.
0:04:50 > 0:04:51And we believe we will end up with
0:04:51 > 0:04:53a better product, at the end of the day.
0:04:53 > 0:04:57So, how are you going to do that without cutting back on space?
0:04:57 > 0:05:00If you want to keep this as one, and not use it as two floors,
0:05:00 > 0:05:02how are you going to do that in terms of space?
0:05:02 > 0:05:05There will be a part floor, running through,
0:05:05 > 0:05:08but what we want to do is keep the dramatic two-storey space
0:05:08 > 0:05:13around the two sides where the tall windows are.
0:05:13 > 0:05:16Ingenious. And not bisecting the windows got my vote.
0:05:16 > 0:05:21Nick and Sonia's total development budget was set at £200,000,
0:05:21 > 0:05:23inclusive of fees and expenses.
0:05:25 > 0:05:28Added to the 290,000 they'd already paid at auction,
0:05:28 > 0:05:31it would take them to half a million pounds.
0:05:32 > 0:05:36Now, their target of completion was just one year.
0:05:38 > 0:05:41So, it's just one dwelling that you're looking at building.
0:05:41 > 0:05:44At the moment, the intention is just to build one,
0:05:44 > 0:05:47but we are looking at the possibility of a second property
0:05:47 > 0:05:51on the adjoining land, which was part of the purchase.
0:05:53 > 0:05:57With planning permission for the total development granted,
0:05:57 > 0:05:59we returned just over two years later
0:05:59 > 0:06:02and there were plenty of clues that this was going to be
0:06:02 > 0:06:04an outstanding transformation.
0:06:06 > 0:06:10# Oh, heaven, oh, heaven
0:06:10 > 0:06:13# I wake with good intentions
0:06:13 > 0:06:20# But the day, it always lasts too long
0:06:20 > 0:06:24# Then I'm gone, then I'm gone... #
0:06:24 > 0:06:27The two-storey space was certainly dramatic
0:06:27 > 0:06:29and the interior colour scheme accentuated this
0:06:29 > 0:06:31with its monochromatic tones.
0:06:37 > 0:06:42It's amazing! And certainly nothing like before.
0:06:42 > 0:06:44# I'm nothing like before... #
0:06:45 > 0:06:48How was it achieved?
0:06:48 > 0:06:51The slates were reclaimed and reused and supplemented where necessary.
0:06:51 > 0:06:56The bricks from the original chapel were... It was hand-demolished
0:06:56 > 0:06:59and all salvaged and used in the reconstruction of the walls.
0:06:59 > 0:07:01As we came into the house,
0:07:01 > 0:07:04we wanted to keep some nice light, open spaces,
0:07:04 > 0:07:08but keeping a palette of largely white, grey, and black
0:07:08 > 0:07:11with some splashes of colour.
0:07:11 > 0:07:13There was a good mix of old and new
0:07:13 > 0:07:18with a hi-tech office area concealed behind the lounge.
0:07:22 > 0:07:26A doorway through to the oak-beamed glass extension
0:07:26 > 0:07:29and the space where there was once Sunday school lessons
0:07:29 > 0:07:32became an amazing high-spec kitchen-diner.
0:07:37 > 0:07:40It may have looked minimalist, but had everything that even
0:07:40 > 0:07:43the most demanding of chefs could have wished for.
0:07:45 > 0:07:48The kitchen, we wanted to use natural materials
0:07:48 > 0:07:52and we wanted to use oak to continue the oak frame outside
0:07:52 > 0:07:56and we also wanted to introduce the darker colours to mimic
0:07:56 > 0:08:01the slate on the roof and the dark flooring.
0:08:01 > 0:08:03But also white to lighten it up, really.
0:08:03 > 0:08:05I said everything,
0:08:05 > 0:08:09but I didn't expect the church pew seating cleverly colour-coded
0:08:09 > 0:08:13to make it stand out as a preserved original feature.
0:08:13 > 0:08:16Next, there's a utility and cloakroom.
0:08:16 > 0:08:18Then, there's the mezzanine level, where again,
0:08:18 > 0:08:22respect for the building's past shines through.
0:08:22 > 0:08:26We've been in a number of church buildings that have been converted
0:08:26 > 0:08:28and one of the issues always is,
0:08:28 > 0:08:32particularly from the external elevations,
0:08:32 > 0:08:36when you put a floor across at a high level, it spoils the lines
0:08:36 > 0:08:38and chops the windows in half,
0:08:38 > 0:08:41so we were aware that we didn't really want to do that, we
0:08:41 > 0:08:44wanted to bring the floors back from the windows,
0:08:44 > 0:08:47but there's always a compromise and a balance between having
0:08:47 > 0:08:50some floor space upstairs to stand on and to use as bedrooms,
0:08:50 > 0:08:53but hopefully what we've achieved is some quite dramatic space
0:08:53 > 0:08:56and the church from the outside
0:08:56 > 0:08:59largely looks as it was when it was first built.
0:08:59 > 0:09:03Well, I thought it was dramatic and in my view,
0:09:03 > 0:09:07the compromise of lost upstairs space was so worth it.
0:09:07 > 0:09:11There was still room for a great family bathroom and three bedrooms.
0:09:16 > 0:09:20Two decent-size ones, one of which was being used as a store room.
0:09:24 > 0:09:28The third bedroom, the master, was an amazing light, spacious room,
0:09:28 > 0:09:30with en suite facilities,
0:09:30 > 0:09:33complete with those beautiful modern sliding doors,
0:09:33 > 0:09:37which gave access to the balcony above the kitchen.
0:09:37 > 0:09:39It was a breathtaking use of a building
0:09:39 > 0:09:44which the original plans bought with the chapel would have torn down.
0:09:44 > 0:09:47And speaking of plans, what was in store for the land next door?
0:09:49 > 0:09:54What we're envisaging building is a three-storey house,
0:09:54 > 0:09:59one level of which is subterranean, bar the front elevation,
0:09:59 > 0:10:01which would be largely glass.
0:10:01 > 0:10:04It's going to be an ICF construction,
0:10:04 > 0:10:06which is insulated concrete formwork,
0:10:06 > 0:10:09so basically you put a load of polystyrene Lego bricks together,
0:10:09 > 0:10:11with lots of steel in them,
0:10:11 > 0:10:14and you pour the concrete and it will actually be...
0:10:14 > 0:10:17Well, we're hoping it will actually be a passive house,
0:10:17 > 0:10:19it will not need any heating.
0:10:20 > 0:10:24The budget for the new build was £200,000.
0:10:24 > 0:10:26The couple have five children between them
0:10:26 > 0:10:30and the hope was that the new house, combined with the chapel,
0:10:30 > 0:10:32could be home to the entire family.
0:10:32 > 0:10:35But how much had it cost for the project so far?
0:10:37 > 0:10:42On the chapel, we have spent about £350,000,
0:10:42 > 0:10:46it includes a little bit of money relating to the site next door,
0:10:46 > 0:10:49enabling some drainage work and the construction of a shed
0:10:49 > 0:10:54at the back, which we needed to do prior to excavating the main dig.
0:10:54 > 0:10:59The couple spent one and a half times the original £200,000 budget
0:10:59 > 0:11:01on this renovation -
0:11:01 > 0:11:07added to their £290,000 purchase price makes a total of £640,000.
0:11:07 > 0:11:11But bear in mind that because they're converting a property into
0:11:11 > 0:11:15a home, they may be able to claim VAT back on some of the materials,
0:11:15 > 0:11:18which could be a significant sum.
0:11:18 > 0:11:22What did two estate agents make of this project?
0:11:22 > 0:11:25Unbelievable, I think, is the best way of describing it.
0:11:25 > 0:11:28It is a fabulous building.
0:11:28 > 0:11:33The position of the property, the character, the improvements...
0:11:33 > 0:11:37In fact, it's probably one of the best conversions I've ever seen.
0:11:37 > 0:11:39The workmanship is first-class.
0:11:39 > 0:11:42Taking an average of the agents' valuations,
0:11:42 > 0:11:46at this point Nick and Sonia stood to make a modest profit
0:11:46 > 0:11:50of £55,000, but this house wasn't for sale.
0:11:50 > 0:11:54And there was another entirely new house still to be built.
0:11:54 > 0:11:56Given their overspend on the chapel,
0:11:56 > 0:12:00would they keep to their £200,000 budget?
0:12:00 > 0:12:03Would the house be as high-spec? I couldn't wait to see.
0:12:03 > 0:12:07And you can find out how they get on later in the programme.
0:12:13 > 0:12:16In Stoke-on-Trent in the Midlands, there's a statue
0:12:16 > 0:12:21giving public recognition to one of the city's famous potters.
0:12:21 > 0:12:25In the northeast district of Smallthorne, where I am today,
0:12:25 > 0:12:28they celebrate the planets in the street names.
0:12:31 > 0:12:35And talking of the solar system, I did find one street
0:12:35 > 0:12:37named after a star in the footballing world.
0:12:37 > 0:12:39There's hope for me yet.
0:12:39 > 0:12:43Just a ten-minute drive away from Hanley town centre is
0:12:43 > 0:12:45the property I'm here to see.
0:12:45 > 0:12:48Now, what's up for grabs is a three-bed end-of-terrace house
0:12:48 > 0:12:51with a guide price of £45,000-plus
0:12:51 > 0:12:54and it's just across the road from a primary school.
0:12:54 > 0:12:58Let's take a look and see what's on offer.
0:12:58 > 0:13:02So, we're straight in to the main part of the house,
0:13:02 > 0:13:07which is lounge and dining area.
0:13:07 > 0:13:11It would have been two rooms at some stage during its life,
0:13:11 > 0:13:15with a wall just here. Central heating, fireplace,
0:13:15 > 0:13:19but lots of light coming in, they've made good use of this space.
0:13:19 > 0:13:23Through here, we have stairs going up to the bedrooms.
0:13:23 > 0:13:25I'll investigate that in a while.
0:13:25 > 0:13:30Into the galley kitchen, which is small, but you could possibly
0:13:30 > 0:13:34rekindle some of this, and the bathroom at the end there.
0:13:34 > 0:13:38It's all a little bit tired and definitely needs a bit of love.
0:13:38 > 0:13:41# I need some love like I never needed love before
0:13:41 > 0:13:44# Wanna make love to you, baby
0:13:44 > 0:13:48# I had a little love now I'm back for more
0:13:48 > 0:13:51# Wanna make love to you, baby. #
0:13:51 > 0:13:56And it could be argued that nowhere is loving attention
0:13:56 > 0:13:58needed more than in the kitchen.
0:14:03 > 0:14:06While the lounge reminds me of a lounge bar with its dado rails
0:14:06 > 0:14:10and colour scheme, all that's missing are a few fitted seats
0:14:10 > 0:14:13and drinks on the table. I can imagine it now.
0:14:15 > 0:14:17Bottoms up!
0:14:17 > 0:14:21Meanwhile, upstairs...
0:14:21 > 0:14:23So, there's three bedrooms up here.
0:14:23 > 0:14:26One to the front of the property, second bedroom's here
0:14:26 > 0:14:29and then you've got a box bedroom through there.
0:14:29 > 0:14:32No separate access to the third bedroom.
0:14:32 > 0:14:35You could put a partition wall up to make it a small bedroom,
0:14:35 > 0:14:38but I don't think that would work.
0:14:38 > 0:14:42Accessing a bedroom through another bedroom is fairly common
0:14:42 > 0:14:45in this area and one solution can be to move doors
0:14:45 > 0:14:48and reconfigure a landing or the stairs, but it can be expensive.
0:14:51 > 0:14:55The front bedroom is the largest, with built-in hanging space,
0:14:55 > 0:14:58somewhere to keep your best whistle and flute.
0:14:58 > 0:15:01# Put it on, put it on
0:15:01 > 0:15:04# Cos tonight is the night... #
0:15:04 > 0:15:07But there are some worrying signs of flaking paint.
0:15:07 > 0:15:10Outside in the backyard, you'd need to tidy it up,
0:15:10 > 0:15:13but the thing that concerns me is the outside of the house
0:15:13 > 0:15:17and the render is not in good condition at all.
0:15:17 > 0:15:20If you look up there, some of the render has been removed,
0:15:20 > 0:15:23or even fallen away, in the process,
0:15:23 > 0:15:26taking a bit of mortar away from in between the bricks,
0:15:26 > 0:15:30making that look incredibly dangerous and it would need re-pointing.
0:15:30 > 0:15:32ASAP.
0:15:34 > 0:15:37Time to call in local estate agent to tell us
0:15:37 > 0:15:41a bit more about the area and the property guided £45,000 plus.
0:15:44 > 0:15:48This particular property is very close to local shops
0:15:48 > 0:15:54and supermarkets and it's close to a primary school as well
0:15:54 > 0:15:56and it's a busy area.
0:15:57 > 0:15:58But it does need modernising.
0:15:58 > 0:16:02What would you recommend for this particular property?
0:16:02 > 0:16:04The modernisations that I would basically recommend
0:16:04 > 0:16:08for this particular property is a new kitchen, a new bathroom,
0:16:08 > 0:16:12new carpets, and perhaps new radiators as well.
0:16:12 > 0:16:16And rendering doing at the front and the back of the property.
0:16:16 > 0:16:19At an auction guide price of £45,000-plus,
0:16:19 > 0:16:23what could this property be worth once all the work is done?
0:16:23 > 0:16:27This property could be worth in the region of £75,000,
0:16:27 > 0:16:30once it's all done up.
0:16:30 > 0:16:33Plenty of headroom there, I think, to make a profit.
0:16:33 > 0:16:36What about on the rental market?
0:16:36 > 0:16:38On the rental market,
0:16:38 > 0:16:44this property has the potential of generating £475 per calendar month.
0:16:44 > 0:16:48I think this is a great property with a fantastic guide price.
0:16:48 > 0:16:51There may be an issue with access to the third bedroom, a little bit
0:16:51 > 0:16:53of damp here and there,
0:16:53 > 0:16:56but I think there's a great opportunity to be had right here.
0:16:56 > 0:16:59Let's see who fancied it when it went under the hammer.
0:17:01 > 0:17:03So, lot 45. Smallthorne, Stoke.
0:17:03 > 0:17:05What's this? 40,000?
0:17:06 > 0:17:08Three-bedroomed, end terrace.
0:17:09 > 0:17:1140 to get it going?
0:17:11 > 0:17:1539 then. 39 left. At £39,000. 40, can I see now?
0:17:15 > 0:17:18At 39. 40.
0:17:18 > 0:17:2041. 42.
0:17:22 > 0:17:26At £42,000. By the door, at 42,000.
0:17:26 > 0:17:29At £42,000 then for the first time.
0:17:29 > 0:17:33At £42,000 for the second time.
0:17:33 > 0:17:36Third and final time. At £42,000.
0:17:38 > 0:17:41Can't sell at that. It stays on the market. Please come and talk to us.
0:17:44 > 0:17:46As you may have gathered, in the end,
0:17:46 > 0:17:50somebody did make an offer which was accepted by the vendor.
0:17:50 > 0:17:54That somebody was Lee, who was on the show in 2014,
0:17:54 > 0:17:57when he bought a two-bed mid-townhouse.
0:17:57 > 0:18:00That was also in Smallthorne and Martin heard about Lee's
0:18:00 > 0:18:03amazing history at the start of his developing career.
0:18:03 > 0:18:05Five years ago, after buying my first house,
0:18:05 > 0:18:10- I woke up in hospital maybe two months later.- What do you mean?!
0:18:10 > 0:18:13- Helicopter rescue.- What?!
0:18:13 > 0:18:17So, I perhaps learnt my lessons there not to go kite surfing again.
0:18:17 > 0:18:21Kite surfing?! Oh, no! What happened?
0:18:21 > 0:18:23I woke up in hospital six weeks later, I don't know.
0:18:23 > 0:18:26Anyway, I've forgotten about that now, concentrating on property.
0:18:26 > 0:18:29But Lee's luck is definitely improving.
0:18:29 > 0:18:33He got this house for £40,000 and by negotiating after the auction,
0:18:33 > 0:18:36he paid less than the reserve price.
0:18:38 > 0:18:42My first question was about his new strategy to not attend the auction.
0:18:42 > 0:18:44It's a new approach, but at the moment,
0:18:44 > 0:18:47I feel like it's working, so hopefully I'll be doing it again.
0:18:47 > 0:18:50And you're happy with the price you paid now?
0:18:50 > 0:18:52Yeah, very happy with the price I paid!
0:18:52 > 0:18:58For a three-bed end-terraced, next to a school, pubs, shops, chip shop
0:18:58 > 0:19:02just round the corner, I should have someone living here in two weeks.
0:19:03 > 0:19:06Especially if they like their chips.
0:19:06 > 0:19:10Lee uses a regular team of trusted workmen to do the work.
0:19:10 > 0:19:14He's learned a lot in the six years he's been renovating.
0:19:14 > 0:19:18I'm in the position now where I know who to ring to fix the roof,
0:19:18 > 0:19:21to fix the doors, to fix the plaster repairs.
0:19:21 > 0:19:23I don't need to shop around for quotes now
0:19:23 > 0:19:26because I've got my skilled tradesmen who...
0:19:26 > 0:19:29I'm looking after them, they're looking after me.
0:19:29 > 0:19:32For example, this place, I only got the keys a couple of hours ago.
0:19:32 > 0:19:35I've got the doors being measured up tomorrow,
0:19:35 > 0:19:38the roofer's coming to sort the roof out at the weekend,
0:19:38 > 0:19:41I've got a lady coming in to clean the kitchen
0:19:41 > 0:19:46and bathroom on Friday and I'm going away for the next four days.
0:19:46 > 0:19:49So I should come back Monday to a property that needs new carpets,
0:19:49 > 0:19:54- a decorate and then a tenant. - Job done!- That's...
0:19:54 > 0:19:56On paper, it's all worked out. Something will go wrong.
0:19:56 > 0:19:59There's always something that goes wrong.
0:19:59 > 0:20:01So, while you're away, having a bit of a break...
0:20:01 > 0:20:04I've got a friend's stag do, so I wish him well for the wedding,
0:20:04 > 0:20:06but you've got to make it back from the stag do first.
0:20:06 > 0:20:09You've got to make it back as well cos you've got a property
0:20:09 > 0:20:13- to finish off. - I'm not worried about getting back.
0:20:13 > 0:20:15I'm not worried about Lee either.
0:20:15 > 0:20:18He strikes me as a very sensible young chap.
0:20:18 > 0:20:19Normally at auctions,
0:20:19 > 0:20:22it's 28 days from the hammer falling to completion,
0:20:22 > 0:20:26but Lee needed to arrange a mortgage,
0:20:26 > 0:20:30which meant getting a structural survey because of the render.
0:20:30 > 0:20:34Lee struck lucky - because he offered outside the auction,
0:20:34 > 0:20:36he got more time to complete.
0:20:36 > 0:20:39I was quite fortunate in the position that
0:20:39 > 0:20:42I had more than 28 days where I wasn't going to lose my deposit
0:20:42 > 0:20:45if it all did fall through, but saying that,
0:20:45 > 0:20:50I can make quite a substantial investment in valuation fees,
0:20:50 > 0:20:54structural surveyor and it could have all gone wrong.
0:20:54 > 0:20:57But it didn't. Lee's luck held yet again.
0:20:57 > 0:20:59However, I'm not so sure it will
0:20:59 > 0:21:04when it comes to that refurbishment budget, which is how much?
0:21:04 > 0:21:07Shouldn't go much over 1,500 quid.
0:21:07 > 0:21:10But I'll extend it to £3,000 to get a high finish,
0:21:10 > 0:21:13carpets that don't need replacing in two years.
0:21:13 > 0:21:18The kitchen, that's one that...whether it cleans up nice
0:21:18 > 0:21:21or I might need a new oven, new hob, new worktops.
0:21:21 > 0:21:24Whilst I'm doing all that, I might as well change the carcasses,
0:21:24 > 0:21:27- the cupboard doors.- Do you think you'll get all that done?
0:21:27 > 0:21:29Let's say if the kitchen's not how you want it,
0:21:29 > 0:21:30you may have to change it.
0:21:30 > 0:21:33The bathroom, you may have to adjust it. Your cleaner as well...
0:21:33 > 0:21:37Do you think you'll get all that done within your 1,500, 3,000?
0:21:37 > 0:21:39If I have to change the kitchen,
0:21:39 > 0:21:42that might put it up a bit, but it will be within the 3,000 for sure.
0:21:42 > 0:21:46New render. New mortaring between those bricks, needs to be sorted.
0:21:46 > 0:21:49When it comes to rendering, the chimney,
0:21:49 > 0:21:51the upper rendering will be repaired,
0:21:51 > 0:21:56the lower rendering downstairs that's ready for rendering,
0:21:56 > 0:22:00that's just going to be painted like neighbouring properties,
0:22:00 > 0:22:01so it's not maintenance-free,
0:22:01 > 0:22:04but low-maintenance for the next few years.
0:22:04 > 0:22:07Can I say three grand for your budget, ish?
0:22:07 > 0:22:10- Let's go three grand. - Let's go three grand.
0:22:10 > 0:22:12Go three grand and I'll come in under, I promise you.
0:22:12 > 0:22:15And what about your timescale, to get all that work done?
0:22:15 > 0:22:17- You're going away for four days? - Going away for four days
0:22:17 > 0:22:19and within that four days,
0:22:19 > 0:22:22that will come out in a timescale of, let's call it, 21 days.
0:22:22 > 0:22:24Are you still looking for more property now?
0:22:24 > 0:22:28Are you trying to build that portfolio even further?
0:22:28 > 0:22:31I am, but I'm in a position now where I perhaps need to
0:22:31 > 0:22:33refinance some things to generate some more deposits,
0:22:33 > 0:22:37so perhaps if the right buy came along,
0:22:37 > 0:22:40I'd scrape together a deposit somehow.
0:22:40 > 0:22:43If it's at the right price, you're never going to say no.
0:22:43 > 0:22:46Three grand, 21 days, I can't wait to see how it ends up.
0:22:46 > 0:22:50- Yeah, thank you very much. - Good luck. Enjoy your stag.
0:22:50 > 0:22:51Thank you, thank you.
0:22:51 > 0:22:55So this is one of those situations where not going to the auction
0:22:55 > 0:22:56has paid off.
0:22:56 > 0:22:59Wait and see what hasn't sold, stick a cheeky bid in and you might
0:22:59 > 0:23:02get yourself something a little bit special. That's what Lee did.
0:23:02 > 0:23:06Three-bedroom property and he saved himself five grand.
0:23:06 > 0:23:11But will he get it done within that 21 days and a three-grand budget?
0:23:11 > 0:23:12I'm not too sure.
0:23:12 > 0:23:16But you can find out how he gets on later on in the programme.
0:23:16 > 0:23:19Coming up, I'm wiggling in Cardiff.
0:23:19 > 0:23:21The way it sort of wiggles down here,
0:23:21 > 0:23:24the layout doesn't exactly fill me with great excitement.
0:23:29 > 0:23:33And for Lee, this Stoke house brought out his inner Picasso.
0:23:33 > 0:23:35More painting, more painting.
0:23:38 > 0:23:42Now back to Goudhurst, Kent, where five years ago,
0:23:42 > 0:23:44I met Nick and Sonia.
0:23:44 > 0:23:46They purchased this chapel at auction
0:23:46 > 0:23:48and the adjoining land for £290,000.
0:23:49 > 0:23:54# We've come a long, long way together... #
0:23:54 > 0:23:59Two years later, in 2012, they'd spent £350,000 refurbishing it,
0:23:59 > 0:24:03taking their total spend to £640,000.
0:24:03 > 0:24:07And then, they were about to start work on the adjoining building plot.
0:24:09 > 0:24:12What we're envisaging building is a three-storey house,
0:24:12 > 0:24:15one level of which is subterranean.
0:24:15 > 0:24:18But we're hoping it will actually be a passive house.
0:24:18 > 0:24:20It will not need any heating.
0:24:20 > 0:24:24They thought £200,000 would cover it and a year to complete.
0:24:24 > 0:24:2720 months later, we're back.
0:24:27 > 0:24:29And there's progress,
0:24:29 > 0:24:33but let's start with the finishing touches they've given to the chapel.
0:24:45 > 0:24:47For a start, outside,
0:24:47 > 0:24:51there's a patio area with beautiful geometric shrubs.
0:24:51 > 0:24:54Inside - remember the mezzanine floor at the end,
0:24:54 > 0:24:56which was an open space?
0:24:56 > 0:24:57Well, that's now bedroom four.
0:24:59 > 0:25:03# We've come a long, long way together
0:25:03 > 0:25:07# Through the hard times and the good... #
0:25:07 > 0:25:11And the bedroom that was a storeroom now works as it should.
0:25:13 > 0:25:15# I have to praise you... #
0:25:17 > 0:25:21The original plan was to convert the chapel into a three-bedroom property
0:25:21 > 0:25:25and build a new three-bedroom house on the adjoining land.
0:25:25 > 0:25:28Together, they would be able to accommodate Mick's three sons
0:25:28 > 0:25:31and Sonia's two daughters.
0:25:31 > 0:25:33But now, the chapel has been put up for sale,
0:25:33 > 0:25:35and the house is only partly finished.
0:25:35 > 0:25:37So what's changed?
0:25:39 > 0:25:42We have a recent interesting situation whereby
0:25:42 > 0:25:47we have no more money to finish the property, so the intention is
0:25:47 > 0:25:50to put the chapel on the market, which will release some funds
0:25:50 > 0:25:55so we can complete Chapel View and move across from one to the other.
0:25:55 > 0:25:58Time's moved on for Nick and Sonia and their five children
0:25:58 > 0:26:02in the 20 months since they started the house.
0:26:02 > 0:26:07The children have either flown or are about to fly the nest.
0:26:07 > 0:26:12We can't really warrant keeping a house for our children.
0:26:12 > 0:26:14Especially when we could do with the money.
0:26:14 > 0:26:17What are the reasons for the funds running out on the new build?
0:26:17 > 0:26:19We were told that, in fact,
0:26:19 > 0:26:22we wouldn't need a heating system in the house,
0:26:22 > 0:26:25but we have put in underfloor heating in the event that
0:26:25 > 0:26:27some people might not believe us,
0:26:27 > 0:26:30if we were ever to try and sell it on that basis.
0:26:30 > 0:26:33Have they learnt anything from the new-build house?
0:26:33 > 0:26:37- We took out 60 tonnes of... Was it 60? Or 600?- 600...- Sorry.
0:26:37 > 0:26:40- ..600 tonnes.- Correct... 600 tonnes of earth.
0:26:40 > 0:26:43And we had to work out a way of retaining the ground
0:26:43 > 0:26:46to a height of four metres whilst we did that,
0:26:46 > 0:26:51and actually dug the basement in. So we had a few challenges.
0:26:51 > 0:26:56The whole idea was that the house looks like a two-storey house
0:26:56 > 0:26:58from the front and the back.
0:26:58 > 0:27:00It does so from the back, because it's all underground,
0:27:00 > 0:27:02and then from the front, once the screening is in,
0:27:02 > 0:27:06the house will just appear as two storeys.
0:27:06 > 0:27:08Have they learnt anything from living in the chapel?
0:27:08 > 0:27:12One thing that it has taught us to be, is tidy!
0:27:12 > 0:27:15It's not going to be a show house, but it is a tidy house.
0:27:15 > 0:27:19I think we generally live our lives in that way.
0:27:19 > 0:27:20There is one exception.
0:27:20 > 0:27:23But she's just left.
0:27:23 > 0:27:25THEY LAUGH
0:27:25 > 0:27:28Now, now! No names, no pack drill!
0:27:28 > 0:27:31So, let's have a look at the new-build that will now become
0:27:31 > 0:27:33Nick and Sonia's new home.
0:27:34 > 0:27:37This is the top floor of the house.
0:27:37 > 0:27:40This particular bedroom is going to be our own bedroom.
0:27:40 > 0:27:44It makes the most of the views across the weald.
0:27:44 > 0:27:46Like the bedroom on the other side of the house,
0:27:46 > 0:27:49we have got an en-suite bathroom behind,
0:27:49 > 0:27:53we've got full-height wardrobes built in,
0:27:53 > 0:27:58some very nice bedside lamps ready to go and some USB chargers
0:27:58 > 0:28:01on the plug sockets, which everybody needs these days.
0:28:01 > 0:28:05One of the difficulties with this room is the size of the windows,
0:28:05 > 0:28:08to the extent that it is creating a bit of solar gain,
0:28:08 > 0:28:11so we're going to install some motorised blinds.
0:28:11 > 0:28:14But because we wanted to make the most of the views,
0:28:14 > 0:28:15we decided that was worth it,
0:28:15 > 0:28:20and when we look out of the window, you can see why.
0:28:20 > 0:28:23Two floors down in the subterranean basement, the floor,
0:28:23 > 0:28:25like the rest of the ones in the house,
0:28:25 > 0:28:27is formed from polished concrete.
0:28:28 > 0:28:31As well as being the main access to Chapel View,
0:28:31 > 0:28:34the basement also has a toilet and the remaining area
0:28:34 > 0:28:37will eventually compromise of an office and a bedroom.
0:28:41 > 0:28:44Down here is the engine room of the eco-house,
0:28:44 > 0:28:48with a heat-reclamation pump system and underfloor heating.
0:28:48 > 0:28:51The house, unfortunately, doesn't quite make passive status,
0:28:51 > 0:28:54as there are no photovoltaic panels on the roof,
0:28:54 > 0:28:57or other means of generating its own electricity.
0:28:58 > 0:29:02And finally, there's the ground floor.
0:29:02 > 0:29:05This end is going to be our kitchen.
0:29:05 > 0:29:08This particular wall will have full-height units,
0:29:08 > 0:29:11there'll be an integrated fridge freezer, two ovens,
0:29:11 > 0:29:13then there'll be an iron end unit
0:29:13 > 0:29:17which will extend to probably about here, I think.
0:29:17 > 0:29:20And in here will be the sink, dishwasher...
0:29:20 > 0:29:25It's all going to be quite...sleek, shall we say,
0:29:25 > 0:29:28so that it looks more like a piece of furniture than actually
0:29:28 > 0:29:32a kitchen, because the other end of this room is our main living area.
0:29:32 > 0:29:36There's also a balcony at the front, the balustrade is yet to be done,
0:29:36 > 0:29:39then over here, we'll probably have room to fit a small
0:29:39 > 0:29:44dining table and these sliding doors open from either end to extend out
0:29:44 > 0:29:49onto our patio area, which will be the same level as the floor in here.
0:29:49 > 0:29:51But I think this will probably be
0:29:51 > 0:29:54the room that we'll spend most of our time.
0:29:54 > 0:29:57The plot was purchased as part of the old chapel lot,
0:29:57 > 0:30:00so it is hard to apportion costs.
0:30:00 > 0:30:02But Nick told us back in 2012
0:30:02 > 0:30:05that his budget for Chapel View was £200,000.
0:30:07 > 0:30:10- Did I really say that?- Shame on you!
0:30:10 > 0:30:13Shame on me! Shame on me.
0:30:13 > 0:30:17The new-build house has actually turned out to be very similar
0:30:17 > 0:30:20in construction cost to the chapel conversion,
0:30:20 > 0:30:24and we've spent approximately 400,000.
0:30:24 > 0:30:25Oops! Crikey.
0:30:25 > 0:30:28But, to be fair, once they'd realised they'd be moving in,
0:30:28 > 0:30:31the spec of the house increased.
0:30:31 > 0:30:33Look at that view!
0:30:33 > 0:30:36We called in two local estate agents to give us their views
0:30:36 > 0:30:38and sale values for the two properties.
0:30:38 > 0:30:40Ooh! This is nice.
0:30:40 > 0:30:42Starting with Chapel View,
0:30:42 > 0:30:46let's hope it's a good bit more than £400,000.
0:30:46 > 0:30:48It's a lovely property.
0:30:48 > 0:30:50It's much nicer on the inside than it is on the outside.
0:30:50 > 0:30:53I think around here the houses are very period,
0:30:53 > 0:30:58so to see a high-spec modern house like this is quite a surprise.
0:30:58 > 0:31:00But it's a revelation, as well.
0:31:00 > 0:31:01I think it's fantastic.
0:31:01 > 0:31:03It is quite unusual for the area -
0:31:03 > 0:31:06there's lots of character listed properties around here,
0:31:06 > 0:31:09but this one really stands out. It's phenomenal.
0:31:09 > 0:31:11So, ladies, what's it worth?
0:31:11 > 0:31:14In my opinion, this house should be valued at £720,000.
0:31:14 > 0:31:20I would put a value of £725,000 on a new build.
0:31:20 > 0:31:25Phew! A healthy profit of at least £320,000.
0:31:25 > 0:31:27Except they're not selling this one.
0:31:27 > 0:31:32However, the chapel, there has been extra work in forming bedroom four,
0:31:32 > 0:31:35diverting drains and clearing the common driveway.
0:31:35 > 0:31:39And that takes the total cost to £690,000.
0:31:39 > 0:31:44I would value the chapel at offers in excess of £890,000.
0:31:44 > 0:31:50On the chapel, I would value that at £900,000.
0:31:50 > 0:31:53In that case, at least a profit of £200,000
0:31:53 > 0:31:56before taxes and expenses.
0:31:57 > 0:32:00I think the one next door is probably fractionally low,
0:32:00 > 0:32:04and this one is probably fractionally high,
0:32:04 > 0:32:06but overall, yeah, it's really pleasing.
0:32:06 > 0:32:10So the couple could have been looking at around half a million pounds
0:32:10 > 0:32:14total profit, were this just a financial exercise.
0:32:14 > 0:32:19But it started out as building the perfect family development.
0:32:19 > 0:32:22What's it going to be like living next door, though?
0:32:22 > 0:32:25I love living in the chapel, because it's got big, open spaces
0:32:25 > 0:32:27and it's quite dramatic.
0:32:27 > 0:32:31But I'm looking forward to moving into the new-build as well,
0:32:31 > 0:32:34because it's got better views
0:32:34 > 0:32:38and I think perhaps the accommodation is better laid out.
0:32:38 > 0:32:41And has Mick got any tips for would-be developers?
0:32:41 > 0:32:43It's all about planning.
0:32:43 > 0:32:46And about making sure you get all your ducks in a row,
0:32:46 > 0:32:47that old saying.
0:32:47 > 0:32:50Really, really, think through what you're going to do,
0:32:50 > 0:32:53plan what you're going to do and try and understand
0:32:53 > 0:32:56what's involved in the whole process.
0:32:56 > 0:32:58One thing's for sure,
0:32:58 > 0:33:03Nick and Sonia clearly have a strong faith in their capabilities.
0:33:03 > 0:33:06# I gotta have faith, faith, faith. #
0:33:11 > 0:33:14Cardiff, like many of Britain's major cities,
0:33:14 > 0:33:16has more than a fair sprinkling of
0:33:16 > 0:33:20fantastic Victorian and Edwardian architecture,
0:33:20 > 0:33:24brimming with scale and grandeur - for those who could afford it.
0:33:27 > 0:33:30You walk down a street like this,
0:33:30 > 0:33:35you can't really get over the fact that, in their heyday,
0:33:35 > 0:33:39each of these houses would probably have been owned by one family.
0:33:39 > 0:33:43I mean, the whole servants thing, you know, endless rooms,
0:33:43 > 0:33:45an entire wing for Granny, probably.
0:33:45 > 0:33:48Well, like many parts of the country,
0:33:48 > 0:33:50these particular properties in Cardiff
0:33:50 > 0:33:53more often than not nowadays have been converted into flats.
0:33:53 > 0:33:55And that is what exactly what I'm here to see.
0:33:55 > 0:33:58It's a basement flat, going price of 70,000 quid. Let's have a look.
0:34:00 > 0:34:03Now, I know I'm looking for a basement flat,
0:34:03 > 0:34:07but finding the entrance is proving more tricky than I thought.
0:34:07 > 0:34:10# We gotta keep searching, searching
0:34:10 > 0:34:11# Find a place to stay
0:34:11 > 0:34:13# Searching, searching... #
0:34:13 > 0:34:15It's GOT to be around here somewhere.
0:34:19 > 0:34:21Ah! Eventually!
0:34:21 > 0:34:24No front door. Just a side door.
0:34:28 > 0:34:31So, through the communal area, which is in nice condition,
0:34:31 > 0:34:34which is always a good start, and then into the flat itself.
0:34:34 > 0:34:35Now, we are in a basement,
0:34:35 > 0:34:38so you expect it to be a little bit claustrophobic.
0:34:38 > 0:34:40Let's see how it goes.
0:34:40 > 0:34:43Entrance corridor here.
0:34:43 > 0:34:46In here - bathroom and loo.
0:34:46 > 0:34:49Well, it's not exactly massive, but then, what do you expect?
0:34:49 > 0:34:51It could also do with a bit of tarting up.
0:34:51 > 0:34:55A new suite and new shower surround etc, etc.
0:34:55 > 0:34:57But you definitely get your money back
0:34:57 > 0:35:00if you do spend some money in there, so that's good.
0:35:00 > 0:35:03Down this little corridor to the first bedroom down there.
0:35:03 > 0:35:06That way we'll explore in a minute but through into this room,
0:35:06 > 0:35:09and the way it wiggles down here...
0:35:09 > 0:35:11The layout doesn't exactly
0:35:11 > 0:35:16fill me with great excitement, but this is the second bedroom.
0:35:16 > 0:35:18And again, it's... Hm. It's not ideal,
0:35:18 > 0:35:22but you have got an en-suite, which is a bit of a surprise.
0:35:22 > 0:35:25A few signs of damp on this wall here
0:35:25 > 0:35:29and then a back door leading to...
0:35:29 > 0:35:33Well, I don't know, a set of stairs and onwards to...
0:35:33 > 0:35:35what would have been a fire escape,
0:35:35 > 0:35:39which somebody very kindly has built this rather impressive
0:35:39 > 0:35:44and difficult to get over wrought iron fence around.
0:35:45 > 0:35:47It's not really ideal, is it?
0:35:47 > 0:35:51# Oh-oh-oh-oh
0:35:51 > 0:35:55# At the top of the stairs there's darkness
0:35:55 > 0:35:58# My life is not based on... #
0:35:58 > 0:36:00Later, I learned there was a public thoroughfare
0:36:00 > 0:36:02at the corner of the building
0:36:02 > 0:36:06and the fence was to stop passers-by from falling down the steps.
0:36:06 > 0:36:08Maybe a gate would be a better idea.
0:36:09 > 0:36:11HE SIGHS
0:36:11 > 0:36:12Wow.
0:36:12 > 0:36:14Suddenly the flat redeems itself.
0:36:14 > 0:36:19You come into this room here, which is your main living room/kitchen
0:36:19 > 0:36:23and it is a really nice-sized space.
0:36:23 > 0:36:27You've got the patio doors leading out onto the little patio there.
0:36:27 > 0:36:29Loads of light and coming in, which is really good.
0:36:29 > 0:36:32A good-sized space. It's in half decent condition.
0:36:32 > 0:36:35Thank goodness for that.
0:36:35 > 0:36:37# Doo doo doobie doo Good thing... #
0:36:41 > 0:36:44Yes, this room is what's going to sell the flat.
0:36:44 > 0:36:46It actually feels quite light and airy in here.
0:36:48 > 0:36:52And it makes up for the less than welcoming bedrooms and bathrooms.
0:36:52 > 0:36:53Phew.
0:36:55 > 0:36:57And there's another positive outside.
0:37:00 > 0:37:02One of the potential issues with flats,
0:37:02 > 0:37:04particularly city-centre ones,
0:37:04 > 0:37:08is parking, and Cardiff is no different to any other big city.
0:37:08 > 0:37:12Good news though. With this flat, you get a designated parking space
0:37:12 > 0:37:15just at the side of the building here, so that's great news.
0:37:18 > 0:37:20So, there are definitely pluses here
0:37:20 > 0:37:24and, once refurbished, with its near-city-centre location,
0:37:24 > 0:37:27I could see this doing very well on the rental market.
0:37:31 > 0:37:33But what does a local estate agent think?
0:37:35 > 0:37:37I'm a bit concerned with the walls.
0:37:37 > 0:37:40We're below ground level here in the basement
0:37:40 > 0:37:43and I think checking damp and moisture should be looked at.
0:37:45 > 0:37:47And really it's lighting which is essential
0:37:47 > 0:37:49to really lift the apartment.
0:37:49 > 0:37:51Not much more can be done from a point of alterations.
0:37:51 > 0:37:53It is what it is.
0:37:53 > 0:37:57Yes, some areas could be brighter but if it was turned into
0:37:57 > 0:37:59a light, smart city pad,
0:37:59 > 0:38:02what could this flat, guided at £70,000, be worth?
0:38:05 > 0:38:10In my opinion, the resale value of this apartment would be £120,000.
0:38:11 > 0:38:14And how would it fare on the rental market?
0:38:14 > 0:38:18This property would rent for £650 per calendar month.
0:38:18 > 0:38:20Two sharers or one couple.
0:38:21 > 0:38:25Well, the layout might not be ideal but the location certainly is.
0:38:25 > 0:38:29I guess you can't have everything. Who decided this flat was enough?
0:38:29 > 0:38:31Let's find out when it went under the hammer.
0:38:36 > 0:38:43Lot 41 is a converted two-bedroom lower ground floor apartment.
0:38:43 > 0:38:45Start me at £60,000, somebody.
0:38:45 > 0:38:4860, wave a hand. Thank you. 60, I've got you right at the back.
0:38:48 > 0:38:50At 60. And 5 now can I see?
0:38:50 > 0:38:52I've got 60. 65 somebody or 62, if you like.
0:38:52 > 0:38:5562. 64 there, 64.
0:38:55 > 0:38:5766, 68,
0:38:57 > 0:38:5970? 70.
0:38:59 > 0:39:0272? 72, no. At £70,000 I've got here.
0:39:02 > 0:39:0470,000. 71?
0:39:04 > 0:39:06Thank you. 71 there. 71.
0:39:06 > 0:39:0772?
0:39:07 > 0:39:1072. And 3. 74?
0:39:10 > 0:39:1274. 75?
0:39:12 > 0:39:1475. 76...
0:39:14 > 0:39:16So, interest in the flat was hotting up
0:39:16 > 0:39:20and we rejoin the bidding at £85,000.
0:39:20 > 0:39:22..85,
0:39:22 > 0:39:2386,
0:39:23 > 0:39:2587, 88?
0:39:25 > 0:39:29No? At 87,000, right at the back then for the first time...
0:39:29 > 0:39:32Second time... Third and last, I'm going to...
0:39:32 > 0:39:3488,000, just in time. 88.
0:39:34 > 0:39:3689? 89 and 90?
0:39:36 > 0:39:3890. 91?
0:39:38 > 0:39:4291, 92, 93?
0:39:42 > 0:39:44At 93. 94?
0:39:44 > 0:39:47Nope. At 93,000 then for the first time...
0:39:47 > 0:39:48Second time...
0:39:48 > 0:39:52Third and last time then. Right at the back at £93,000...
0:39:52 > 0:39:55- GAVEL BANGS - Sir, well done, your number, please?
0:39:55 > 0:39:57Is number 106. Thank you very much.
0:39:58 > 0:40:04So, £23,000 over the guide price, the two-bed Cardiff flat
0:40:04 > 0:40:09was sold for £93,000 and the successful bidder was Brian.
0:40:09 > 0:40:13Brian bought this as a joint venture with business partner Ewan,
0:40:13 > 0:40:16and eagle-eyed viewers will recognise
0:40:16 > 0:40:20that we've met Brian before in January 2015,
0:40:20 > 0:40:24when he and Ewan bought a house 20 miles north of Cardiff
0:40:24 > 0:40:26in the small village of Ferndale.
0:40:26 > 0:40:29But they had a big problem with the retaining wall,
0:40:29 > 0:40:32which was collapsing into an existing extension.
0:40:32 > 0:40:34So, having sorted that one out,
0:40:34 > 0:40:37they're taking on this challenge in Cardiff.
0:40:37 > 0:40:40What attracted you to this flat, then?
0:40:40 > 0:40:43- Um... Not a lot, really.- Oh.
0:40:43 > 0:40:46Not the normal answer I would expect.
0:40:46 > 0:40:50In auction again we just went for a property with a good location
0:40:50 > 0:40:53and thought that we could get something out of it.
0:40:53 > 0:40:54You'd seen it before you bought it?
0:40:54 > 0:40:57Yeah, I had seen it before we bought it,
0:40:57 > 0:41:00and it's an unusual-looking property,
0:41:00 > 0:41:04but hopefully we can get something done with it.
0:41:04 > 0:41:07This will be Brian and Ewan's fourth property project together
0:41:07 > 0:41:10and the roles in the partnership are clearly divided,
0:41:10 > 0:41:12with Ewan providing the funding,
0:41:12 > 0:41:14while Brian does the renovation work,
0:41:14 > 0:41:16and as yet they haven't decided
0:41:16 > 0:41:20whether they will rent or sell this one once it's complete.
0:41:20 > 0:41:23So, what work have you got planned for the place?
0:41:23 > 0:41:27I'm going to be putting in a new kitchen with a breakfast bar
0:41:27 > 0:41:33to try and separate the kitchen to the lounge area.
0:41:33 > 0:41:35Redecorate right through.
0:41:35 > 0:41:40New carpets in the bedrooms, wood flooring in the passageways,
0:41:40 > 0:41:44and half and half in the kitchen.
0:41:44 > 0:41:46Right. New bathrooms?
0:41:46 > 0:41:50Maybe not new bathrooms but I'll have a better look at them
0:41:50 > 0:41:54- and if we can spruce them, then we'll spruce them up.- OK.
0:41:54 > 0:41:59By the rear door are some signs of damp. Any idea what's causing that?
0:41:59 > 0:42:01Yeah, I had a look outside
0:42:01 > 0:42:06and there was a problem with the drainpipes, the downpipes.
0:42:06 > 0:42:09They've actually come apart, so we'll be looking at that
0:42:09 > 0:42:11and getting that seen to and sorted out.
0:42:11 > 0:42:14What are your thoughts about the fact that that door opens out
0:42:14 > 0:42:17onto a set of steps which leads to a bit of gate?
0:42:17 > 0:42:19Yeah, I'm going to have a look at that again
0:42:19 > 0:42:22cos that's very unusual but hopefully I will get something
0:42:22 > 0:42:27- that you can access there with a gate, you know?- Yeah.
0:42:27 > 0:42:30Cos it's a shame just to have a door there with no exit.
0:42:30 > 0:42:33What's the budget for the work?
0:42:33 > 0:42:35- 5,000 - 6,000.- OK.
0:42:35 > 0:42:37What's the timescale for the work?
0:42:37 > 0:42:40- I would say six weeks.- OK.
0:42:40 > 0:42:42In, out and sort it out.
0:42:42 > 0:42:44In and out, sort it out, and quick as.
0:42:44 > 0:42:46- Well, congratulations.- Thank you. - Good luck.
0:42:46 > 0:42:50- Thank you very much.- Looking forward to seeing how you get on.- Thank you.
0:42:50 > 0:42:54So another property for Brian and business partner Ewan.
0:42:54 > 0:42:58Hopefully they won't have AS many issues to deal with
0:42:58 > 0:43:01as they did last time but you never know.
0:43:01 > 0:43:03You can find out how they get on sorting out this little flat
0:43:03 > 0:43:05later in the show.
0:43:08 > 0:43:10Now, we've seen how one of our buyers got on
0:43:10 > 0:43:11but what about the other two?
0:43:11 > 0:43:14Yes, how successful have their projects been?
0:43:14 > 0:43:15Why don't we find out?
0:43:19 > 0:43:21Now we head back to Smallthorne, Stoke-on-Trent,
0:43:21 > 0:43:23where this three-bedroom cornered terrace
0:43:23 > 0:43:27was bought after auction for £40,000,
0:43:27 > 0:43:29£5,000 under the guide price.
0:43:31 > 0:43:33New owner Lee put in a cheeky bid for it
0:43:33 > 0:43:36when it didn't reach its reserve price.
0:43:36 > 0:43:40It's a new approach but at the moment I feel like it's working,
0:43:40 > 0:43:41so hopefully I'll be doing it again.
0:43:41 > 0:43:43And you're happy with the price you paid now?
0:43:43 > 0:43:48Yeah, very happy with the price of it. For a three-bed, end-terraced,
0:43:48 > 0:43:53next to a school, pubs, shops, chip shop just round the corner.
0:43:53 > 0:43:58His strategy was to do a quick fix-up and then rent out the property,
0:43:58 > 0:44:02and to say his budget was frugal would be an understatement.
0:44:02 > 0:44:04It shouldn't go much over 1,500 quid.
0:44:04 > 0:44:08But I'll extend it to 3,000 to get a high finish,
0:44:08 > 0:44:11carpets that I don't need to replace in two years.
0:44:11 > 0:44:14The kitchen, that's one that...
0:44:14 > 0:44:17It's whether it cleans up nice or, you know what,
0:44:17 > 0:44:19I might need a new oven, new hob, new worktop.
0:44:19 > 0:44:22So, if I'm doing all that, I might as well change the carcasses,
0:44:22 > 0:44:25- the cupboard doors.- Do you think you'll get all that done...?
0:44:25 > 0:44:28If the kitchen is not how you want it, you may have to change it.
0:44:28 > 0:44:31The bathroom, you may have to adjust it. Your cleaner as well.
0:44:31 > 0:44:35Do you think you'll get all that done within your 1,500 - 3,000?
0:44:35 > 0:44:38If I have to change the kitchen, that might put it up a bit
0:44:38 > 0:44:40but it will be within the 3,000 for sure.
0:44:40 > 0:44:42And what about your timescale to get all that work done?
0:44:42 > 0:44:44You're going away for four days?
0:44:44 > 0:44:47I'm going away for four days and within that four days,
0:44:47 > 0:44:51that will come out the timescale of... Let's call it 21 days.
0:44:51 > 0:44:55Three weeks including render and chimney repairs seemed tight.
0:44:55 > 0:44:59It took five weeks and we're back to see how much love
0:44:59 > 0:45:01he's given this house.
0:45:02 > 0:45:04# It's driving me crazy
0:45:04 > 0:45:05# You can try to lie
0:45:05 > 0:45:07# But you're not gonna not gonna deny
0:45:07 > 0:45:11# No you're not gonna not gonna deny my love... #
0:45:11 > 0:45:13The two tones of paint and wood stain and have gone.
0:45:15 > 0:45:18New external doors and a neutral colour scheme with white wood
0:45:18 > 0:45:21makes everything brighter and more modern.
0:45:22 > 0:45:24# You can't deny my love. #
0:45:29 > 0:45:33The kitchen and its appliances were well-worn.
0:45:33 > 0:45:37New oven, hob and worktops, along with a newly tiled floor
0:45:37 > 0:45:39have refreshed it.
0:45:39 > 0:45:41The cupboard carcasses were fine
0:45:41 > 0:45:45and the doors cleaned up with a face-lift of more modern handles.
0:45:47 > 0:45:49When Lee removed the lino in the bathroom,
0:45:49 > 0:45:51he found this tiled floor underneath.
0:45:53 > 0:45:57He put a new power shower in and tidied up the utility room.
0:45:58 > 0:46:03# I always thought we'd get there Someday
0:46:03 > 0:46:04# It's driving me crazy... #
0:46:06 > 0:46:09Upstairs, all the carpets have been cleaned,
0:46:09 > 0:46:11walls replastered where necessary,
0:46:11 > 0:46:15and damp caused by leaking guttering has been sorted.
0:46:15 > 0:46:17# But you're not gonna not gonna deny
0:46:17 > 0:46:23# No you're not gonna not gonna deny my love
0:46:23 > 0:46:26# You can't deny my love
0:46:26 > 0:46:28# My love... #
0:46:28 > 0:46:31But perhaps the biggest paint job has been to the outside walls.
0:46:33 > 0:46:35Over to you, Lee.
0:46:36 > 0:46:38I've gone right the way through the property.
0:46:38 > 0:46:42In general, it's been decorate, decorate, decorate,
0:46:42 > 0:46:44clean, clean, clean,
0:46:44 > 0:46:49more painting, more painting, and get everything safety checked.
0:46:49 > 0:46:52Electricity, gas safety certificate,
0:46:52 > 0:46:55the roof effectively has been MOT'd for five years,
0:46:55 > 0:46:57plasterwork and damp.
0:46:57 > 0:47:02Everything has been checked and it's all ready to go for let now.
0:47:02 > 0:47:05Looking back at the flaking render and dodgy mortar on the chimney,
0:47:05 > 0:47:06what happened there?
0:47:06 > 0:47:09It was just a quick render repair
0:47:09 > 0:47:15and repair to the mortar with a bit of sand and cement.
0:47:15 > 0:47:18My roofer went up there and made a good job of it.
0:47:18 > 0:47:23As well as the roofer, Lee hired in a plumber, a carpenter and a plasterer.
0:47:23 > 0:47:25So, what was his main job?
0:47:25 > 0:47:31The main jobs that I've done are painting, painting, painting.
0:47:31 > 0:47:35He should have bought some grout at the same time. Any major problems?
0:47:35 > 0:47:38To be honest with you, there's been no major problems
0:47:38 > 0:47:42other than motivation to come back here and paint again
0:47:42 > 0:47:44and come back the following day and paint again.
0:47:44 > 0:47:46When it's raining outside
0:47:46 > 0:47:50and I've got to paint again it was a bit demotivating
0:47:50 > 0:47:53but I'm close to the end now, so I'm all happy.
0:47:53 > 0:47:56But it must be distressing that one of the chimney breasts
0:47:56 > 0:47:58is rejecting the new paint.
0:47:58 > 0:48:02It looks like it's because of a poorly ventilated chimney,
0:48:02 > 0:48:06so we'll ventilate the chimney, quick plaster repair,
0:48:06 > 0:48:09lick of paint, and hopefully we'll have cured that.
0:48:09 > 0:48:10Plastic air grille at the bottom,
0:48:10 > 0:48:13then get the paintbrush out again, Lee, and you should be OK.
0:48:17 > 0:48:21We called in not one, but two estate agents to get their judgment
0:48:21 > 0:48:25on the refurbishment and to see what value Lee has added to the property.
0:48:25 > 0:48:29Batting first, the agent who saw it before refurbishment.
0:48:29 > 0:48:33The standard and the finish of this property is above average,
0:48:33 > 0:48:37I would say, and it suits the area pretty well, as well.
0:48:37 > 0:48:40The selling points of the property is, it's your PVC double glazing,
0:48:40 > 0:48:42it's got combi central heating,
0:48:42 > 0:48:44it's got a big floor space with it
0:48:44 > 0:48:47and obviously it's in a convenient location to your local shops,
0:48:47 > 0:48:51schools, amenities, bus route at the end of the road to the local school.
0:48:51 > 0:48:55Lee bought this property for £40,000 and did he stay under
0:48:55 > 0:48:59that challenging three-grand maximum refurbishment budget?
0:48:59 > 0:49:01Oh, yes, he did.
0:49:01 > 0:49:06He spent 2,500, so his total spend is £42,500.
0:49:07 > 0:49:09And what would it sell for?
0:49:09 > 0:49:12In its current condition, the property would value
0:49:12 > 0:49:15in the region of £65,000.
0:49:15 > 0:49:18In today's market, I would expect the property to go on the market
0:49:18 > 0:49:22in the region of £65,000, with an acceptable figure around £62,000.
0:49:23 > 0:49:28A potential profit of £22,500 before taxes and expenses.
0:49:28 > 0:49:30Tempted, Lee?
0:49:30 > 0:49:33I would sell at that price but I've got a tenant,
0:49:33 > 0:49:36so there's no need to sell.
0:49:36 > 0:49:41Should that tenant fall through or move on in a few months,
0:49:41 > 0:49:45I would perhaps consider selling it at that valuation cos...
0:49:45 > 0:49:51I could do it all again and I think I could achieve the same again.
0:49:51 > 0:49:53Well, with a tenant in place, the paintbrushes
0:49:53 > 0:49:56can go into storage for a while.
0:49:56 > 0:49:59If I were to let this property, I would expect the property to achieve
0:49:59 > 0:50:02realistically around £395 per calendar month.
0:50:02 > 0:50:05If the owner rented this particular property,
0:50:05 > 0:50:11he would achieve a rental income of £450 - £475 per calendar month.
0:50:11 > 0:50:15Well, the rental figures come in at what I've rented it for,
0:50:15 > 0:50:17there or thereabouts,
0:50:17 > 0:50:21so I didn't really need an estate agent to tell me that.
0:50:21 > 0:50:23I know enough about the market as it is.
0:50:23 > 0:50:26Lee says he's getting near the top end of those figures
0:50:26 > 0:50:29and at a rate of £450 per calendar month
0:50:29 > 0:50:32he would get a yield of almost 13%.
0:50:34 > 0:50:36It's been quick.
0:50:36 > 0:50:41It started fast, finished fast, but it's taken its toll on me
0:50:41 > 0:50:43and I need a break.
0:50:43 > 0:50:44Well, when you've recovered, pal,
0:50:44 > 0:50:47my garage could do with a lick of paint, please.
0:50:54 > 0:50:58Earlier in Cardiff, I looked around a two-bedroom flat conversion
0:50:58 > 0:51:04bought by Brian with his business partner, Ewan, for £93,000.
0:51:04 > 0:51:06I asked him why they chose this property.
0:51:06 > 0:51:09We just went for a property with a good location
0:51:09 > 0:51:12and thought that we could get something out of it.
0:51:12 > 0:51:15It's an unusual-looking property
0:51:15 > 0:51:18but hopefully we can get something done with it.
0:51:18 > 0:51:21That "something" was going to depend on whether they decided
0:51:21 > 0:51:23to rent out or sell,
0:51:23 > 0:51:26but whichever the case, Brian was going to be busy.
0:51:28 > 0:51:30So, what work have you got planned for the place?
0:51:30 > 0:51:33I'm going to be putting in a new kitchen with a breakfast bar
0:51:33 > 0:51:37to try and separate the kitchen to the lounge area.
0:51:37 > 0:51:42Redecorate right through, new carpets in the bedrooms,
0:51:42 > 0:51:45wood flooring in the passageways,
0:51:45 > 0:51:49and half and half in the kitchen.
0:51:49 > 0:51:51Right. New bathrooms?
0:51:51 > 0:51:55Maybe not new bathrooms but I'll have a better look at them
0:51:55 > 0:51:58and if we can spruce them up, then we'll spruce them up.
0:51:58 > 0:52:01Brian estimated six weeks for the work
0:52:01 > 0:52:04but a bad back extended that to ten weeks.
0:52:04 > 0:52:06MUSIC: Beethoven Symphony No. 7
0:52:06 > 0:52:08If you're wondering why we're playing Beethoven,
0:52:08 > 0:52:11it's because this piece was written in a flat.
0:52:11 > 0:52:12How appropriate.
0:52:14 > 0:52:16Oh, I've just been told it should read,
0:52:16 > 0:52:19"It was written in A flat major." Sorry.
0:52:19 > 0:52:20Anyway, we're back.
0:52:24 > 0:52:26Let's start in the lounge-kitchen,
0:52:26 > 0:52:28where Brian was going to fit a breakfast bar.
0:52:30 > 0:52:34And here it is. And there's a new kitchen to go with it.
0:52:34 > 0:52:38# Forever more... #
0:52:38 > 0:52:42Well, I don't know about that, Gary, but it should last a good long time.
0:52:44 > 0:52:47# Everything changes but you... #
0:52:47 > 0:52:50And so should the new central heating system
0:52:50 > 0:52:52and the laminate floor.
0:52:53 > 0:52:57The new tiles and all new appliances make a huge difference
0:52:57 > 0:52:59and the lack of lights that is often the scourge
0:52:59 > 0:53:03of a basement flat is also helped because...
0:53:03 > 0:53:08- # The situation changed - The situation changed
0:53:08 > 0:53:11# And so much is new... #
0:53:11 > 0:53:14Got it in one, Gary. Now, the bathroom where again...
0:53:14 > 0:53:17# Everything changes but you... #
0:53:17 > 0:53:22The cramped space with a tiny corner sink you could barely get to...
0:53:22 > 0:53:25# Everything changes but you... #
0:53:25 > 0:53:29..is more spacious, thanks to replacing the bath with a shower.
0:53:32 > 0:53:34Don't get me wrong, I like a shower,
0:53:34 > 0:53:37but this one looks like it could be quite invigorating.
0:53:37 > 0:53:40But a word of caution before you all start ripping out your baths -
0:53:40 > 0:53:43some people still prefer them, including me.
0:53:43 > 0:53:47So, if Brian decides to sell, he could be limiting his market.
0:53:48 > 0:53:52It's another case of form versus function but with this room
0:53:52 > 0:53:54there's no doubting that it functions a lot better
0:53:54 > 0:53:56than it used to.
0:53:56 > 0:53:59And the master bedroom has seen some changes too.
0:53:59 > 0:54:03# Everything changes but you... #
0:54:03 > 0:54:04Where there used to be an en-suite,
0:54:04 > 0:54:07it looks like Brian's fitted a sauna.
0:54:07 > 0:54:10# Everything changes but you... #
0:54:10 > 0:54:12Only kidding!
0:54:12 > 0:54:15It's a walk-in wardrobe for that hanging space so often overlooked
0:54:15 > 0:54:19in a modern flats. And, after all, it's only a short walk to the loo.
0:54:23 > 0:54:26The small bedroom certainly lived up to its name
0:54:26 > 0:54:29and although nothing can be done about its size,
0:54:29 > 0:54:32new carpets and the neutral colour scheme tie it in
0:54:32 > 0:54:34with the rest of the flat.
0:54:36 > 0:54:39So, how did everything go with the refurbishment?
0:54:39 > 0:54:43We had a problem with the boiler where when we turned it on
0:54:43 > 0:54:46it caught fire, so we ended up taking the old boiler out
0:54:46 > 0:54:48and putting a brand-new one back in.
0:54:48 > 0:54:52Fortunately for Brian, his heating engineer/plumber was able to deal
0:54:52 > 0:54:55with the smoking boiler before matters got worse.
0:54:56 > 0:55:00An electrician was the other specialist tradesman Brian used,
0:55:00 > 0:55:03replacing all the electrical fittings with brushed silver,
0:55:03 > 0:55:06leaving Brian to sort everything else out,
0:55:06 > 0:55:10like the damp by the external door in the main bedroom.
0:55:10 > 0:55:13The actual damp was initially coming from the downpipes,
0:55:13 > 0:55:15faulty downpipes, which we repaired
0:55:15 > 0:55:18and made sure that all the problem was sorted.
0:55:18 > 0:55:22Further improvements outside included cleaning up the patio area
0:55:22 > 0:55:26by the kitchen, giving a much brighter feel inside,
0:55:26 > 0:55:27as well as out.
0:55:27 > 0:55:29Brian and his business partner Ewan
0:55:29 > 0:55:33also decided to go for a sale rather than renting,
0:55:33 > 0:55:35so they refurbished to a higher standard
0:55:35 > 0:55:39than originally planned, spending £9,000 on the refurbishment
0:55:39 > 0:55:43rather than the forecast of 5,000 - 6,000.
0:55:43 > 0:55:45The extra money went on the higher-spec kitchen
0:55:45 > 0:55:49and the higher-spec bathroom and obviously the boiler.
0:55:49 > 0:55:52So, how does it feel spending two and a half months
0:55:52 > 0:55:53to turn this around?
0:55:53 > 0:55:56It feels good. Well happy with the finish,
0:55:56 > 0:55:58so looking forward to being able to sell it.
0:56:01 > 0:56:04We called in two local estate agents to give us their opinions
0:56:04 > 0:56:07and valuations of the flat and who better to go first
0:56:07 > 0:56:11than the agent who saw the property before Brian started the work?
0:56:14 > 0:56:18The transformation of the apartment is really first class.
0:56:18 > 0:56:22It was a dull, dreary apartment before the renovation
0:56:22 > 0:56:26and now you have a stylish apartment somewhere where a first-time buyer,
0:56:26 > 0:56:28a young couple, would love to live here.
0:56:28 > 0:56:31Yeah, the property's been finished to a very good standard,
0:56:31 > 0:56:36really nice and bright. I think the owner's done a fantastic job.
0:56:36 > 0:56:40Brian and Ewan aren't planning on renting but it's always good to have
0:56:40 > 0:56:45a fallback position. So, what would this be worth on the rental market?
0:56:45 > 0:56:48If the property was to go on the rental market,
0:56:48 > 0:56:52I'd look to put the property on for £650 - £675 per calendar month.
0:56:52 > 0:56:55In my opinion, the rental for this property
0:56:55 > 0:56:59is £650 per calendar month.
0:56:59 > 0:57:03Taking the average, that's getting on for an 8% yield
0:57:03 > 0:57:06on their total spend of 102,000.
0:57:07 > 0:57:12That's good to know but I don't think we will go the rental route.
0:57:12 > 0:57:13But it's handy to know.
0:57:13 > 0:57:16So, they're not going to live in it or rent it out,
0:57:16 > 0:57:20so what could they expect when the sale boards say, "Sold"?
0:57:20 > 0:57:23In my opinion, the open market value of this apartment
0:57:23 > 0:57:27as it currently stands is £130,000.
0:57:27 > 0:57:29If I was to put this property on the market,
0:57:29 > 0:57:33I would look to put it on the market for £130,000.
0:57:33 > 0:57:37Giving a potential profit of £28,000 before taxes and expenses.
0:57:37 > 0:57:39How does that feel?
0:57:39 > 0:57:41Yeah, that's about right.
0:57:41 > 0:57:43That's the figure we had in our heads so, yeah, that's fine.
0:57:43 > 0:57:46- That's great.- So, have you any advice for someone starting out
0:57:46 > 0:57:48on the refurbishment trail?
0:57:48 > 0:57:52Just keep it simple and hopefully keep earning some money out of it.
0:57:52 > 0:57:55And might I suggest having a heating engineer close by
0:57:55 > 0:57:57for when your boiler catches fire?
0:58:03 > 0:58:05Well, that's it for today's show
0:58:05 > 0:58:08but there are plenty more properties and owners where they came from.
0:58:08 > 0:58:12Yep. Join us next time to find out who bid and what they bought.
0:58:12 > 0:58:14We'll see you then for more Homes Under The Hammer.
0:58:14 > 0:58:15- Goodbye.- Bye for now.