0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:04Lucy and I love the world of property.
0:00:04 > 0:00:06It's exciting, it's challenging
0:00:06 > 0:00:10but there's nothing quite like that thrill of negotiating a good deal.
0:00:10 > 0:00:13And we know somebody who feels just as passionate as we do.
0:00:13 > 0:00:15Ah, Mr Dion Dublin, in you come.
0:00:15 > 0:00:16Thank you very much.
0:00:16 > 0:00:18Great to be here, thank you.
0:00:18 > 0:00:19People know me as a footballer
0:00:19 > 0:00:21but I do like my property developing.
0:00:21 > 0:00:23And I can't wait to get involved with you guys
0:00:23 > 0:00:24on Homes Under The Hammer.
0:00:49 > 0:00:52Now, guys, as you know, getting a good deal isn't always easy but
0:00:52 > 0:00:56one good place where you could start looking would be an auction house.
0:00:56 > 0:00:58Yeah, hundreds and hundreds of properties are sold at auction
0:00:58 > 0:01:00up and down the country every month.
0:01:00 > 0:01:03Let's take a look at today's three properties sold under the hammer.
0:01:04 > 0:01:08In Crayford, no roof, no walls, no property.
0:01:08 > 0:01:10But there are big plans.
0:01:10 > 0:01:13This is going to be a nice brand-new house on a nice road.
0:01:15 > 0:01:18Whilst in Plaistow, I've got a ceiling
0:01:18 > 0:01:20but I'd love to get rid of it.
0:01:20 > 0:01:23They've really gone to town. It's everywhere as well. Wow!
0:01:25 > 0:01:28I don't want to demolish any of this property in Wheelock, Cheshire,
0:01:28 > 0:01:30I'd love to build another.
0:01:30 > 0:01:31Gr-rr-rr!
0:01:31 > 0:01:34This is the money. It's a building plot any day of the week.
0:01:36 > 0:01:39All these properties were bought at auction and we'll find out
0:01:39 > 0:01:41who got them and how much they paid
0:01:41 > 0:01:43when these homes went under the hammer.
0:01:43 > 0:01:44Yours, sir.
0:01:46 > 0:01:49MUSIC: Get on The Right Track, Baby by Ray Charles
0:01:53 > 0:01:58Today I've journeyed to a Kentish town called Crayford in Dartford.
0:01:58 > 0:02:01Now, it's taken me just 35 minutes to travel here from London.
0:02:01 > 0:02:05The annual price of a train ticket may put some people off
0:02:05 > 0:02:09because it costs over £1,600,
0:02:09 > 0:02:12so quite a tidy sum.
0:02:12 > 0:02:17But the average property price here is around £200,000
0:02:17 > 0:02:21compared to over 380 grand for a house in the capital.
0:02:21 > 0:02:24Now, I'm not promising your train will come on time,
0:02:24 > 0:02:27the signals are positive, and moving here, well,
0:02:27 > 0:02:31it could put your financial situation back on track.
0:02:31 > 0:02:33# Get on the right track, baby
0:02:34 > 0:02:37# Get on the right track, baby
0:02:37 > 0:02:39# Get on the right track, baby
0:02:40 > 0:02:41# Yeah! #
0:02:41 > 0:02:44It's certainly a cheaper alternative to city living
0:02:44 > 0:02:48plus you benefit from a less hectic life here in the Garden of England.
0:02:48 > 0:02:52Well, the guide for this lot was set at £70,000-£80,000.
0:02:52 > 0:02:54Now, that doesn't seem very much money.
0:02:54 > 0:02:56Well, that's because, well,
0:02:56 > 0:02:59you don't get very much, I'm afraid.
0:02:59 > 0:03:00No fixtures or fittings,
0:03:00 > 0:03:03no bricks, no roof because, yes,
0:03:03 > 0:03:05you've guessed, viewers, it's land.
0:03:06 > 0:03:11Now, when I say, "Not very much money," in some parts of the country
0:03:11 > 0:03:14you get a lot of property for that kind of guide price.
0:03:14 > 0:03:17While here, um, well...
0:03:17 > 0:03:18# Nothing!
0:03:18 > 0:03:19# Nothing at all. #
0:03:22 > 0:03:25This narrow bit of land, well, it doesn't seem very appealing.
0:03:27 > 0:03:30But it's land with garages.
0:03:30 > 0:03:33No, you're still not excited, are you?
0:03:33 > 0:03:35People will pay for storage,
0:03:35 > 0:03:37parking, perhaps,
0:03:37 > 0:03:41but that is not going to really bring the cash in, is it?
0:03:41 > 0:03:42Well, I've got some good news.
0:03:42 > 0:03:45This lot comes with planning permission
0:03:45 > 0:03:48and that makes it much, much more valuable.
0:03:49 > 0:03:50Now I've got your attention!
0:03:50 > 0:03:52# You're looking good...
0:03:52 > 0:03:54# You're looking good
0:03:54 > 0:03:55# ..to me
0:03:55 > 0:03:57# To me. #
0:03:57 > 0:04:00Well, it's looking a bit better now, isn't it?
0:04:00 > 0:04:02"Yes, Lucy, it is," I hear you cry.
0:04:03 > 0:04:06The planning allows the new owner to demolish these garages
0:04:06 > 0:04:10and replace them with a detached two-bedroom dwelling.
0:04:10 > 0:04:11Fantastic news.
0:04:11 > 0:04:13Now, this is what it's going to look like.
0:04:13 > 0:04:15Quite big from the outside.
0:04:15 > 0:04:19You've got loads of windows there, letting lots of natural light in.
0:04:19 > 0:04:22The roof isn't going to be pitched, it's going to be a little bit flat
0:04:22 > 0:04:25along the top with loads of skylights in.
0:04:25 > 0:04:28Again, it's going to be light and airy upstairs.
0:04:28 > 0:04:31You've got a really nice big open-plan living room,
0:04:31 > 0:04:34there's a kitchen, study and dining room.
0:04:34 > 0:04:38And, interestingly, you get three parking spaces.
0:04:38 > 0:04:42I'm looking on these plans, I can see one, two, three parking spaces.
0:04:42 > 0:04:45So, there's obviously a bit of an issue with parking along this road.
0:04:45 > 0:04:47I know I can see lots of yellow lines.
0:04:47 > 0:04:50So, you know, for me it ticks a lot of the boxes.
0:04:50 > 0:04:55This is going to be a nice, shiny, brand-new house on a nice road.
0:04:55 > 0:04:59# Shiny happy people holding hands
0:04:59 > 0:05:03# Shiny happy people laughing. #
0:05:03 > 0:05:06The house in the plan is in keeping with the house across the road
0:05:06 > 0:05:10except, of course, that this one will have an extra floor.
0:05:10 > 0:05:13So, a plot with plans in a residential area,
0:05:13 > 0:05:14you know that's quite a find.
0:05:19 > 0:05:22Now, I can imagine you're sitting there thinking,
0:05:22 > 0:05:24"House-building is not for me."
0:05:24 > 0:05:26It's a lot to take on.
0:05:26 > 0:05:29Well, it may interest you to know that each year
0:05:29 > 0:05:32more than 20,000 people self-build a new home.
0:05:34 > 0:05:37The attractions of building your own home are obvious.
0:05:37 > 0:05:40You get the layout just as you want it and if you're prepared to spend
0:05:40 > 0:05:44time with planning you can be fairly imaginative and innovative.
0:05:44 > 0:05:47Alternatively, with your developer's head on,
0:05:47 > 0:05:49this could be a nice little earner.
0:05:49 > 0:05:53It's flat, it's got planning permission for a nice-looking house
0:05:53 > 0:05:55and there are probably services nearby.
0:05:59 > 0:06:01What does a local estate agent reckon about the plans
0:06:01 > 0:06:04for a two-bedroom detached house on this plot,
0:06:04 > 0:06:08guided at £70,000-£80,000?
0:06:08 > 0:06:10The plot, I think, is relatively straightforward.
0:06:10 > 0:06:16Obviously, any prospective buyer should look into drainage issues,
0:06:16 > 0:06:19soil tests should be carried out and really they should probably
0:06:19 > 0:06:21go down and speak to the local planning office.
0:06:22 > 0:06:26It's always worth trying to work with your local planning department
0:06:26 > 0:06:28even if you think it's straightforward.
0:06:28 > 0:06:31Does the agent think the current plans are worth sticking with?
0:06:33 > 0:06:36Given the size of the plot, I think it's been maximised
0:06:36 > 0:06:39to its full potential as far as planning's concerned.
0:06:39 > 0:06:44With the 70,000-80,000 guide price, and build costs at around 100,000,
0:06:44 > 0:06:47could such a house give you a decent return?
0:06:47 > 0:06:50If the property was built today and we were marketing it under
0:06:50 > 0:06:54the current climate, we'd recommend an asking price of £250,000.
0:06:56 > 0:07:00And with rental figures in the order of £800 per calendar month,
0:07:00 > 0:07:03this could be a decent long-term investment.
0:07:03 > 0:07:07A plot with planning that could stand to make profit
0:07:07 > 0:07:10in a great location. What is not to like?
0:07:10 > 0:07:12Let's go to auction and find out who bought it
0:07:12 > 0:07:14when it went under the hammer.
0:07:16 > 0:07:19Building plot for a detached two-bedroom dwelling.
0:07:19 > 0:07:20It's in a residential area.
0:07:20 > 0:07:2270,000, can I see?
0:07:22 > 0:07:24Give me 65, see if there's a steal here.
0:07:24 > 0:07:2765, I'm bid. 65, and 70?
0:07:27 > 0:07:29Not big money.
0:07:29 > 0:07:31At 65 I have, 7 I will take, if you like.
0:07:31 > 0:07:36Another 2. 67, I'm bid. Fill it up to £70,000.
0:07:36 > 0:07:38£70,000, I'm obliged.
0:07:38 > 0:07:4072 now, it's against you.
0:07:40 > 0:07:44£72,000, then, are we all done at £72,000?
0:07:44 > 0:07:4774?
0:07:47 > 0:07:50£74,000 I've got, 75 bid I have.
0:07:50 > 0:07:5376, now, if you like. 76, may I say?
0:07:53 > 0:07:54One more?
0:07:54 > 0:07:58If not, at £75,000. Are we all done at £75,000?
0:07:58 > 0:07:5976, I have.
0:07:59 > 0:08:02I have 76 by the wall, 77 I'm looking for.
0:08:02 > 0:08:06If not, at £76,000 then I will sell for the first time...
0:08:06 > 0:08:0976,000 on the left-hand wall for the second time...
0:08:09 > 0:08:12Third and final time, at £76,000 is it all done?
0:08:12 > 0:08:15£76,000, thank you very much, sir, and your number, please?
0:08:15 > 0:08:16Friends and business partners
0:08:16 > 0:08:20Mark and Jim were a little obscured from our view
0:08:20 > 0:08:23but their successful bid of £76,000
0:08:23 > 0:08:25certainly wasn't missed by the auctioneer.
0:08:27 > 0:08:30Jim, on the left, is an experienced builder
0:08:30 > 0:08:32while Mark is a plumbing and heating engineer.
0:08:32 > 0:08:35They've built up some expertise in solar panels
0:08:35 > 0:08:37and they've got their own company together
0:08:37 > 0:08:40specialising in renewable energies and renovations.
0:08:43 > 0:08:46So, boys, you were the lucky two to have won this on auction day.
0:08:46 > 0:08:4876,000!
0:08:48 > 0:08:51- Pleased with the price? - Not too bad, yeah.- So, tell me,
0:08:51 > 0:08:55how much did you know about this lot going up for auction?
0:08:55 > 0:08:57Well, we had a little bit of insider information.
0:08:57 > 0:08:59- We live only about three miles away. - Yeah.
0:08:59 > 0:09:03And I'd done some solar panels for the builder that owned it,
0:09:03 > 0:09:09so I rang the site foreman and asked him was there any nasties in it,
0:09:09 > 0:09:12any hidden things and, no, it was just, um,
0:09:12 > 0:09:15I think they just needed to free up some cash for a bigger project.
0:09:15 > 0:09:18Now, usually, Mark, what we say is, "Read the legal pack,"
0:09:18 > 0:09:20that's what you must do to find the hidden nasties,
0:09:20 > 0:09:22not phone up the man that owns it.
0:09:22 > 0:09:23Did you get a chance to read the legal pack?
0:09:23 > 0:09:25We did, on the morning of the auction, yes.
0:09:25 > 0:09:27We had a look at it, yeah.
0:09:27 > 0:09:29So you did your homework thoroughly?
0:09:29 > 0:09:31Yes.
0:09:31 > 0:09:35What was it about this site that made you want to bid for it?
0:09:35 > 0:09:38It suited the price range, for a start.
0:09:38 > 0:09:42Then we wanted to build something that we could put solar panels on
0:09:42 > 0:09:45and to advertise our own business.
0:09:46 > 0:09:51In most cases, solar panels can be added under permitted development.
0:09:51 > 0:09:54But you'll also have to meet building regulations.
0:09:54 > 0:09:56Mark and Jim want to stick to the plans
0:09:56 > 0:09:58that come with the piece of land
0:09:58 > 0:10:01while adding a little bit of an eco-friendly touch.
0:10:04 > 0:10:08# It's not that easy being green. #
0:10:08 > 0:10:10How much do you think it's going to cost you to build
0:10:10 > 0:10:11that type of property?
0:10:11 > 0:10:14About 100,000, ballpark.
0:10:14 > 0:10:16Are you going to sort of do it at mid-range?
0:10:16 > 0:10:19Yes, a mid-to-high, depending with the agents -
0:10:19 > 0:10:22if they tell us we can get a little bit more if we fit out
0:10:22 > 0:10:24a better kitchen, a better bathroom,
0:10:24 > 0:10:26then we'll do whatever, you know, is required.
0:10:26 > 0:10:30We'll be doing it to a good standard anyway, like. It's, um...
0:10:30 > 0:10:33Because there's only one way to do something, is do it right.
0:10:33 > 0:10:35And is that what you do, Jim, is that how you work,
0:10:35 > 0:10:39- your ethos, you know, you do it well...?- Yeah.- You do it thoroughly.
0:10:39 > 0:10:42If it's not done well, it's not done.
0:10:44 > 0:10:46And Mark and Jim should avoid delays
0:10:46 > 0:10:49by leaving the plans just the way they are.
0:10:49 > 0:10:55# I take you just the way you are. #
0:10:56 > 0:11:01They'll hope to sell it on but are prepared to rent if necessary.
0:11:01 > 0:11:04Now, the pair have known each other since childhood in Ireland
0:11:04 > 0:11:06and while they've worked together on various projects
0:11:06 > 0:11:09this will be their first new-build.
0:11:09 > 0:11:11We have lots of work projects on at the moment
0:11:11 > 0:11:15and this will be, like, our project when we're in-between jobs.
0:11:15 > 0:11:17So, it'll be very quick, quick, slow.
0:11:17 > 0:11:19We might do nothing for two or three months
0:11:19 > 0:11:23and then we might be two or three months on it and then pull off again.
0:11:23 > 0:11:26So, yeah, it's like a private job
0:11:26 > 0:11:28when we don't have any big projects on.
0:11:28 > 0:11:29What do you work like together?
0:11:29 > 0:11:32I mean, obviously, you're mates, what's it like working together?
0:11:32 > 0:11:35It gets very monotonous if you don't... If you can't have the craic,
0:11:35 > 0:11:36as we say in Ireland, you know?
0:11:36 > 0:11:40Got to have the craic. You've got to have those big old smiles
0:11:40 > 0:11:42Well, it's been fantastic meeting you today. Good luck with this.
0:11:42 > 0:11:45- Thank you.- Can't wait to see what it ends up looking like.
0:11:45 > 0:11:48- Well done, thank you very much, Jim, Mark.- Thank you very much.
0:11:48 > 0:11:50- Thank you.- Thank you. - Nice talking to you.
0:11:50 > 0:11:53The boys have full-time jobs alongside this project
0:11:53 > 0:11:57but they have been realistic with their timescales.
0:11:57 > 0:12:02My worry is, when they come to sell this, what will the market dictate?
0:12:02 > 0:12:04Will they be forced to rent?
0:12:04 > 0:12:08You can find out if the boys are still having the craic
0:12:08 > 0:12:11or will there be cracks in their relationship?
0:12:11 > 0:12:14Join me later in the programme and you can see what happens.
0:12:18 > 0:12:20This is the residential area of Plaistow
0:12:20 > 0:12:22in the London Borough of Newham.
0:12:22 > 0:12:24The good thing about being in a city
0:12:24 > 0:12:28is that you can have all kinds of homes next-door to each other.
0:12:28 > 0:12:33From a tower block to a nice, quiet, family terraced row of houses.
0:12:33 > 0:12:35The property I'm here to see
0:12:35 > 0:12:39is a three-bed mid-terrace with a guide price of £200,000.
0:12:39 > 0:12:41'Well, the outside is slightly scruffy
0:12:41 > 0:12:44'but there are some nice original features and I don't think
0:12:44 > 0:12:47'it would really take much to lift its all-important curb appeal.'
0:12:49 > 0:12:51OK, small hallway here.
0:12:51 > 0:12:53Quite tight, actually, in here, quite claustrophobic.
0:12:55 > 0:13:00Into... Wow, a really big sort of lounge/living room area.
0:13:00 > 0:13:02With a lovely bay window, as well.
0:13:02 > 0:13:05But this ceiling, I've never seen anything like this before.
0:13:05 > 0:13:08They've really gone to town. It's everywhere as well. Wow!
0:13:12 > 0:13:15# Everywhere I go. #
0:13:15 > 0:13:18And it's not just a textured ceiling that needs changing.
0:13:18 > 0:13:21Throughout the downstairs, it'll need to be modernised.
0:13:21 > 0:13:24Not just for aesthetic reasons but for safety reasons, too.
0:13:27 > 0:13:31What I have noticed, as well, is the staircase over here, no banister.
0:13:31 > 0:13:33It is a narrow staircase
0:13:33 > 0:13:35but you still have to have some kind of protection here.
0:13:35 > 0:13:37If you've got children in this property, dangerous,
0:13:37 > 0:13:40they could quite easily fall off the staircase.
0:13:40 > 0:13:43The kitchen, to me, on first look, seems to be OK.
0:13:43 > 0:13:45Just needs a bit of a clean-up.
0:13:45 > 0:13:47The cupboards seem to be intact.
0:13:47 > 0:13:50Get this touched up, it'll be no problem at all.
0:13:50 > 0:13:52Yes, I think the kitchen worktops
0:13:52 > 0:13:55and units might be usable with a bit of elbow grease.
0:13:55 > 0:13:58But the real negatives here are the signs of damp
0:13:58 > 0:14:00and a downstairs bathroom and toilet.
0:14:00 > 0:14:04Never ideal from a layout point of view but it's the condition
0:14:04 > 0:14:07of them that's perhaps more worrying, with more signs of damp.
0:14:09 > 0:14:12I think I need to check outside to see what's going on.
0:14:13 > 0:14:15Out here into the back yard.
0:14:15 > 0:14:20Completely slabbed but I've got to draw the eye to this guttering,
0:14:20 > 0:14:23or should I say, lack of guttering. There's nothing here at all.
0:14:23 > 0:14:25Completely bare,
0:14:25 > 0:14:28I've never known a guttering been done with paper before.
0:14:28 > 0:14:32# You know it ain't right to treat me like you do
0:14:35 > 0:14:40# You know it ain't right to treat me like you do. #
0:14:41 > 0:14:44Paper stuffed into holes in guttering is never going to work.
0:14:44 > 0:14:47And it's not just the guttering I'm concerned about -
0:14:47 > 0:14:50that flat roof extension generally isn't in great condition
0:14:50 > 0:14:52and from the state of the downstairs bathroom,
0:14:52 > 0:14:55I suspect the roof has seen much better days
0:14:55 > 0:14:59and the back area as a whole really isn't that appealing, either.
0:14:59 > 0:15:02I think I'd kick the old storage shed into touch and replace it
0:15:02 > 0:15:06with maybe something like a summer house and then spruce up the rest.
0:15:06 > 0:15:08I think it could make for a decent patio area.
0:15:10 > 0:15:12There's certainly a fair amount to be done here
0:15:12 > 0:15:14and a fair amount of money to be spent.
0:15:14 > 0:15:17There's more to see here. Let's hope it's a game of two halves.
0:15:18 > 0:15:21OK, upstairs, with the three bedrooms here.
0:15:21 > 0:15:25The large one here goes to the back of the property.
0:15:25 > 0:15:29Smaller one here, which you could have as an office, maybe,
0:15:29 > 0:15:31even a single bed, as well, you'd get in here.
0:15:31 > 0:15:33Or even a little nursery,
0:15:33 > 0:15:36I think the nursery feel would go down well for a family.
0:15:36 > 0:15:38And through here into this...
0:15:38 > 0:15:41Another small bedroom but not a lot to be done up here.
0:15:41 > 0:15:44I think it's fine. Bit of TLC and we're sorted.
0:15:45 > 0:15:47Phew! Well, that's a relief.
0:15:47 > 0:15:50It's not fantastic up here but it doesn't look like it would need
0:15:50 > 0:15:53much spending on it to get it up to scratch.
0:15:53 > 0:15:54And with London prices what they are,
0:15:54 > 0:15:57this could be quite a nice investment.
0:15:57 > 0:15:59What does a local estate agent think?
0:16:01 > 0:16:05This property would probably appeal to families or people working
0:16:05 > 0:16:09in the city that want to not commute too far, live in this area.
0:16:09 > 0:16:12So, there's certainly a ready market for this house.
0:16:13 > 0:16:15There is, of course, the option of losing a bedroom
0:16:15 > 0:16:19and moving the bathroom upstairs and creating a bigger kitchen.
0:16:20 > 0:16:21Is that an option worth considering?
0:16:23 > 0:16:26In my personal opinion, I wouldn't move the bathroom upstairs
0:16:26 > 0:16:30because you'll be losing a bedroom which will basically reduce
0:16:30 > 0:16:33the rental amount in the property, as well.
0:16:33 > 0:16:36OK, so certainly from a rental point of view,
0:16:36 > 0:16:38keeping the third bedroom is a must.
0:16:38 > 0:16:41But how much could a three-bed house in this area rent for?
0:16:42 > 0:16:45Once this property is redecorated and carpeted throughout,
0:16:45 > 0:16:50it should achieve anything between £1,400-£1,500 per calendar month.
0:16:52 > 0:16:55And how might this house, that was guided at £200,000,
0:16:55 > 0:16:57fare on the resale market?
0:16:57 > 0:16:59Once this property is refurbished,
0:16:59 > 0:17:03it would go in the region of £280,000-£290,000.
0:17:06 > 0:17:09This is potentially a lovely three-bed family home
0:17:09 > 0:17:11with a nice big lounge, as well.
0:17:11 > 0:17:13But there are two things you would have to sort out.
0:17:13 > 0:17:16Firstly, for safety reasons, the banister.
0:17:16 > 0:17:19That would need to be sorted out. And those ceilings, as well.
0:17:19 > 0:17:22But who was willing to take on the Artex challenge
0:17:22 > 0:17:23when it went under the hammer?
0:17:27 > 0:17:30Lot 16, three-bed mid-terraced house.
0:17:30 > 0:17:32Start where you wish to.
0:17:32 > 0:17:33200?
0:17:34 > 0:17:36200 on my right.
0:17:36 > 0:17:37200, 205?
0:17:37 > 0:17:39205.
0:17:39 > 0:17:40210, sir.
0:17:40 > 0:17:42215, madam.
0:17:42 > 0:17:44Yeah? 220.
0:17:45 > 0:17:48225. 245...
0:17:48 > 0:17:51The bidding goes quickly in increments of £5,000
0:17:51 > 0:17:54until it became a battle between just two bidders.
0:17:54 > 0:17:56260.
0:17:56 > 0:17:58We rejoin the bidding at £270,000.
0:17:59 > 0:18:01270.
0:18:01 > 0:18:03271.
0:18:03 > 0:18:04272.
0:18:04 > 0:18:05273.
0:18:05 > 0:18:07274.
0:18:07 > 0:18:09275.
0:18:09 > 0:18:10276?
0:18:10 > 0:18:11276.
0:18:11 > 0:18:13277.
0:18:13 > 0:18:14278?
0:18:14 > 0:18:17278?
0:18:17 > 0:18:19277. Down here.
0:18:19 > 0:18:20278 elsewhere?
0:18:21 > 0:18:23277, first time,
0:18:23 > 0:18:26second time, third and last time, if you're all done?
0:18:28 > 0:18:30Sold, 277, well done.
0:18:31 > 0:18:35So, for £77,000 over the guide price,
0:18:35 > 0:18:37the delighted new owner of a three-bedroomed mid-terrace house
0:18:37 > 0:18:39in Plaistow was Jane.
0:18:43 > 0:18:46Jane worked for 25 years for the London local authority
0:18:46 > 0:18:49but two years ago took a brave decision to give it up
0:18:49 > 0:18:52and concentrate full-time on property developing.
0:18:52 > 0:18:55I met up with her at the house to find out more.
0:18:57 > 0:19:00- Jane, nice to meet you. Congratulations.- Thank you.
0:19:00 > 0:19:01Well done.
0:19:01 > 0:19:03Tell me, firstly, about the auction experience,
0:19:03 > 0:19:05what was it like for you?
0:19:05 > 0:19:09It was really exciting. I'd never been to an auction before.
0:19:09 > 0:19:10I spent a bit more than I wanted to
0:19:10 > 0:19:12but I really wanted to get the property.
0:19:12 > 0:19:14Why this particular property?
0:19:14 > 0:19:18OK, it's about ten minutes' walk to the Tube, it's in a...
0:19:18 > 0:19:22Well, very close to a regeneration zone - just up the road,
0:19:22 > 0:19:26- they are regenerating the old West Ham Stadium.- Yes.- So...
0:19:26 > 0:19:29- I know that very well. - I think it's an ideal area
0:19:29 > 0:19:32and hopefully I will rent it for a few years and then sell it on.
0:19:34 > 0:19:37This will be Jane's second development project.
0:19:37 > 0:19:40Her first was a flat which she refurbished and now rents out.
0:19:40 > 0:19:43And she will use the same team of builders on this project.
0:19:45 > 0:19:48What are your plans in order to turn it around?
0:19:48 > 0:19:50Well, um...
0:19:50 > 0:19:54new kitchen, new bathroom and the roof above the kitchen
0:19:54 > 0:19:55may well need to come off
0:19:55 > 0:19:58and that's the thing I'm probably a little bit anxious about
0:19:58 > 0:20:00because we're not quite sure what we're going to find under there
0:20:00 > 0:20:05so that could be a minor job or it could develop into something bigger.
0:20:05 > 0:20:07You may have noticed the ceiling...
0:20:07 > 0:20:09Yes, the beautiful ceiling. How could you miss it?
0:20:09 > 0:20:11Obviously, we're going to take that down.
0:20:11 > 0:20:14We're going to redec the whole property.
0:20:14 > 0:20:17- We're going to wall this in.- Yes.
0:20:17 > 0:20:19And just, basically, give it a complete refurbishment,
0:20:19 > 0:20:21do a little bit of work at the back
0:20:21 > 0:20:24- just to clean up the slabs, perhaps relay them.- OK.
0:20:24 > 0:20:27- Just fully refurb, really. - So, tell me about your budget.
0:20:27 > 0:20:30My budget I'm working to is about 25,000.
0:20:31 > 0:20:33We'll see how that goes.
0:20:33 > 0:20:35And timescales, as well. Tell us about your timescales.
0:20:35 > 0:20:37We're looking at about eight weeks.
0:20:37 > 0:20:39We've got a team ready to go,
0:20:39 > 0:20:42so we'll just get in and do as much work as we can,
0:20:42 > 0:20:44as quickly as possible.
0:20:45 > 0:20:48Well, Jane definitely seems to know what she's doing.
0:20:48 > 0:20:51But this is in the early stages of a new journey for her
0:20:51 > 0:20:54and she's moved from a job with relative security and a pension
0:20:54 > 0:20:57into the more uncertain world of property developing.
0:20:58 > 0:21:02# I want to see you be brave. #
0:21:02 > 0:21:04Jane, tell us how hard it was to leave your job.
0:21:04 > 0:21:08Was it a frightening decision to make to leave a secure job
0:21:08 > 0:21:11and go into something that you just wanted to do?
0:21:11 > 0:21:16It was quite frightening. I'd been there 25 years, it's a long time.
0:21:16 > 0:21:18I'd done a number of different roles.
0:21:18 > 0:21:19Initially property management
0:21:19 > 0:21:23and then I moved into sort of client managing external contractors.
0:21:23 > 0:21:27- So, I got an idea of what it would entail.- Clever!
0:21:27 > 0:21:30I learned how to negotiate with builders and skills like that
0:21:30 > 0:21:35but I just wanted to have a chance to be my own boss.
0:21:35 > 0:21:36Not look back and think,
0:21:36 > 0:21:38"Oh, I could have done that and I just didn't."
0:21:38 > 0:21:41So, it was the right time for me to leave.
0:21:41 > 0:21:44It's a bit of a risk but I think that the property market
0:21:44 > 0:21:47the way it is at the moment it will be OK.
0:21:47 > 0:21:49Jane, good luck. I hope everything works out
0:21:49 > 0:21:51and I look forward to seeing how you get on.
0:21:51 > 0:21:52- Thank you.- Good luck, take care.
0:21:54 > 0:21:57I've got to take my hat off to Jane for being so brave.
0:21:57 > 0:21:59Leaving a job of 25 years
0:21:59 > 0:22:01and entering the property development world.
0:22:01 > 0:22:05And this is her first house venture. So will she do well?
0:22:05 > 0:22:08I certainly hope so. You can find out later on in the programme.
0:22:09 > 0:22:11Coming up, in Wheelock, Cheshire,
0:22:11 > 0:22:14I'm feeling a little like Doctor Who.
0:22:14 > 0:22:16The inverse Tardis principle -
0:22:16 > 0:22:19it's a lot smaller inside than it looks from the outside.
0:22:20 > 0:22:24And in Plaistow, Jane has been doing some doctoring of her own
0:22:24 > 0:22:25to the inside.
0:22:26 > 0:22:29Once you get started, you just have to keep going, really.
0:22:35 > 0:22:36Back now to Crayford,
0:22:36 > 0:22:41where I went to see an auction lot guided at £70,000-£80,000.
0:22:41 > 0:22:42But it had no kitchen,
0:22:42 > 0:22:44bathroom, bedrooms,
0:22:44 > 0:22:46water, electricity,
0:22:46 > 0:22:47doors, windows,
0:22:47 > 0:22:49roof or even walls.
0:22:49 > 0:22:52Because, yes, you've guessed it, viewers, it's land.
0:22:55 > 0:22:57But what it did have were some garages
0:22:57 > 0:23:00and planning permission for a detached house.
0:23:02 > 0:23:05Now, this is what it's going to look like.
0:23:05 > 0:23:06Quite big from the outside.
0:23:06 > 0:23:10You've got loads of windows there, letting lots of natural light in.
0:23:10 > 0:23:12The roof isn't going to be pitched
0:23:12 > 0:23:14it's going to be a little bit flat along the top.
0:23:14 > 0:23:18You've got a really nice big open-plan living room,
0:23:18 > 0:23:20there's a kitchen, study and dining room.
0:23:20 > 0:23:24So, you know, for me, it ticks a lot of the boxes.
0:23:24 > 0:23:28This is going to be a nice, shiny brand-new house on a nice road.
0:23:30 > 0:23:32Enter builder friends Jim and Mark,
0:23:32 > 0:23:35who paid £76,000 at auction.
0:23:35 > 0:23:38And they did a bit of unorthodox research on the property.
0:23:41 > 0:23:43So I rang the site foreman and asked him
0:23:43 > 0:23:47was there any nasties in it, any hidden things
0:23:47 > 0:23:49and, no, it was just...
0:23:49 > 0:23:53I think they just needed to free up some cash for a bigger project.
0:23:53 > 0:23:55Now, usually, Mark, what we say is, "Read the legal pack,"
0:23:55 > 0:23:58that's what you must do to find the hidden nasties,
0:23:58 > 0:24:00not phone up the man that owns it.
0:24:00 > 0:24:04The two had set a timescale of around 18 months.
0:24:04 > 0:24:10We're back FOUR years on, so maybe there were some nasties after all.
0:24:10 > 0:24:12Did they finally manage to achieve their plans?
0:24:19 > 0:24:21Yes, they certainly did.
0:24:21 > 0:24:25Where there were old garages there's now a light living space.
0:24:25 > 0:24:27There's a very modern downstairs toilet,
0:24:27 > 0:24:30there's also a spacious kitchen-diner.
0:24:37 > 0:24:41Heading upstairs, Jim and Mark have created two bedrooms
0:24:41 > 0:24:43and a lovely bathroom.
0:24:43 > 0:24:46I really like how they've used the structure of the roof
0:24:46 > 0:24:47to create those quirky doors.
0:24:53 > 0:24:56Jim is currently on holiday visiting his sons in Australia -
0:24:56 > 0:24:58lucky for some -
0:24:58 > 0:25:01but Mark has come along to talk us through the property.
0:25:03 > 0:25:06We had to demolish the garages and remove all the rubble from site
0:25:06 > 0:25:09and then we had to do the foundations.
0:25:09 > 0:25:13Build up the outer and then the inner course is actually timber frame.
0:25:13 > 0:25:15And then the outer course, we had to get a bricklayer in
0:25:15 > 0:25:17and brick lay all that.
0:25:17 > 0:25:19And obviously then the roof
0:25:19 > 0:25:21and then it came inside to all the finishing touches.
0:25:21 > 0:25:24Halfway through, we kind of made a decision to finish it
0:25:24 > 0:25:27to a slightly higher standard than we were at the beginning
0:25:27 > 0:25:29and I'm glad we have now.
0:25:30 > 0:25:34That decision to upgrade the finish looks like a good one.
0:25:34 > 0:25:37But they've also made a decision to change the plans downstairs.
0:25:40 > 0:25:42On the plans, it did actually have a wall
0:25:42 > 0:25:45that went from the centre of these two windows to here.
0:25:45 > 0:25:50There was actually a doorway here into what would be a dining room,
0:25:50 > 0:25:52a study or a third bedroom.
0:25:52 > 0:25:54We spoke with a couple of agents
0:25:54 > 0:25:58and they always said that a third bedroom would probably add more value
0:25:58 > 0:26:03to the property but it was really down to the last minute,
0:26:03 > 0:26:05we had to make a decision.
0:26:05 > 0:26:07Mark and Jim certainly did a smart thing.
0:26:07 > 0:26:10They surveyed potential buyers to find out
0:26:10 > 0:26:13if this space should be an office or a bedroom.
0:26:13 > 0:26:14We just made the decision,
0:26:14 > 0:26:18right, just knock it down and now we have a nice big kitchen-dining room.
0:26:18 > 0:26:21But only two bedrooms, so we'll see if we made the right decision.
0:26:22 > 0:26:26Other decisions needed to be made that were much more difficult.
0:26:26 > 0:26:29Jim and Mark specialise in energy-saving building techniques.
0:26:29 > 0:26:32There's a government code for sustainable homes
0:26:32 > 0:26:34which covers design and construction.
0:26:34 > 0:26:38And code three energy requirements are now incorporated
0:26:38 > 0:26:40into most building regulations.
0:26:40 > 0:26:42So what sort of thing does that mean?
0:26:42 > 0:26:45Stand by for some really techie eco-friendly stuff.
0:26:47 > 0:26:51Code three is, for instance, on the floor, the ground-floor level
0:26:51 > 0:26:52when we done the screed,
0:26:52 > 0:26:56it would normally have 100 mil of insulation, we had to put in 120.
0:26:56 > 0:26:59It's kind of even higher again than your standard building.
0:26:59 > 0:27:02We have, actually, six solar panels on the back of the property,
0:27:02 > 0:27:04that are unseen,
0:27:04 > 0:27:08so the customers will actually get approximately £100 free electricity
0:27:08 > 0:27:10a year but not only that, for the next 20 years
0:27:10 > 0:27:12they will actually get a cheque from the government.
0:27:12 > 0:27:15So it's about 20% more efficient
0:27:15 > 0:27:18than a standard, off-the-shelf house, if you like.
0:27:18 > 0:27:22And it even goes down to making sure that you have a space for your bike.
0:27:24 > 0:27:28And for those of you who prefer four wheels to two wheels,
0:27:28 > 0:27:31there's also three valuable parking spaces.
0:27:31 > 0:27:34However, the site's previous existence as garages
0:27:34 > 0:27:39meant soil tests had to be carried out, at a cost of £6,000.
0:27:39 > 0:27:42Connecting services, another six grand.
0:27:42 > 0:27:44They didn't manage to start work on the house
0:27:44 > 0:27:48until two years after I first met them as they didn't have the funds.
0:27:48 > 0:27:52Given the standard of the house and its green credentials,
0:27:52 > 0:27:56I'm guessing that £100,000 budget might have been stretched.
0:27:56 > 0:27:58But Mark has a good reason
0:27:58 > 0:28:00for not being certain about the final figure.
0:28:02 > 0:28:06My secretary, Sinead, went on maternity leave
0:28:06 > 0:28:10and she brought the file home with her to tot it up.
0:28:10 > 0:28:13She then, her waters broke, she went into hospital and she's had
0:28:13 > 0:28:17a beautiful baby girl, Aine, and we haven't had any figures yet.
0:28:17 > 0:28:20But we are about 200,000, I think.
0:28:22 > 0:28:25So, 100 grand over budget, two-and-half years over schedule,
0:28:25 > 0:28:28let's hope there's some good news from the agents.
0:28:28 > 0:28:32Did the boys make the right decision in making this just a two-bed house?
0:28:34 > 0:28:37There will be a market for it just because it's located
0:28:37 > 0:28:40so close to the station, people will really like that factor.
0:28:40 > 0:28:42I'm very, very impressed with the property.
0:28:42 > 0:28:44I feel the builder has paid a lot of attention to detail,
0:28:44 > 0:28:46produced a good finish
0:28:46 > 0:28:48and an attractive house, as well.
0:28:48 > 0:28:51I feel the layout as it is is probably the best it could be.
0:28:51 > 0:28:55I think trying to squeeze an extra room into that kitchen-dining room,
0:28:55 > 0:28:58it would detract from the kitchen-dining room.
0:28:58 > 0:29:01I really like this eco-friendly house
0:29:01 > 0:29:05but it has cost a total of £276,000 to create.
0:29:05 > 0:29:10So the big question - will these boys make a profit?
0:29:10 > 0:29:12I would expect to achieve a sale price
0:29:12 > 0:29:16in the region of £320,000-£330,000.
0:29:16 > 0:29:20This property could resell for £300,000-£310,000.
0:29:22 > 0:29:25Wow, that top valuation of 330,000
0:29:25 > 0:29:30could mean a potential pre-tax profit of £54,000.
0:29:30 > 0:29:32So what does Mark think of that?
0:29:35 > 0:29:39The first one is kind of in line with what we were expecting so, yeah.
0:29:39 > 0:29:42Anything over 330, I think, would be a bonus.
0:29:44 > 0:29:48Jim and Mark plan to sell the house and having spent so many years here,
0:29:48 > 0:29:51they're going to relax and take some family time.
0:29:51 > 0:29:55But was the building process a good craic, as they promised it would be?
0:29:57 > 0:30:00On-site, that's sort of the Irish motto, if you like,
0:30:00 > 0:30:03if you're on-site, there is a lot of banter
0:30:03 > 0:30:06and maybe the air might be blue in certain areas
0:30:06 > 0:30:08but that's just the way you work -
0:30:08 > 0:30:10you gee each other on and you just get the job done.
0:30:14 > 0:30:17I'm in Wheelock, a small village on the outskirts of Sandbach,
0:30:17 > 0:30:19near Crewe, in Cheshire,
0:30:19 > 0:30:22with the Trent and Mersey Canal passing through it.
0:30:22 > 0:30:24It really is a lovely spot.
0:30:27 > 0:30:30With its history lying in the old saltworks,
0:30:30 > 0:30:34Wheelock is now a popular area for families and commuters alike,
0:30:34 > 0:30:37with good rail and road links to Manchester
0:30:37 > 0:30:39and into the rest of Cheshire.
0:30:39 > 0:30:42Its name derives from the Welsh for winding river,
0:30:42 > 0:30:46so time to swan over to the property I'm here to see.
0:30:48 > 0:30:51Well, for a little village, there's certainly a lot of houses
0:30:51 > 0:30:55sort of dotted about, some of them in quite nice locations.
0:30:55 > 0:30:59This one, for instance, that was up for auction is down this road,
0:30:59 > 0:31:03which does throw up a question straight away - who owns the road?
0:31:03 > 0:31:05Who's responsible for its upkeep?
0:31:05 > 0:31:08All things your solicitor needs to check out and that's even before
0:31:08 > 0:31:12we've got to the house, but that is the house that was up for auction.
0:31:12 > 0:31:16A three-bedroomed semi-detached, had a guide price of 125,000 quid.
0:31:16 > 0:31:21Nice location, settled a bit high up, nice garden - looking good.
0:31:25 > 0:31:28# Say hey good-looking
0:31:28 > 0:31:32# What you got cooking? #
0:31:37 > 0:31:39OK, so what does the inside have in store?
0:31:40 > 0:31:42Let's find out.
0:31:42 > 0:31:47Stairs up to your bedrooms there and then through into the lounge.
0:31:47 > 0:31:53Nice bay window. Er... Hm, a bit of a dated fireplace.
0:31:53 > 0:31:56Hmm-mmm. Not quite as big as I thought
0:31:56 > 0:31:58it might be from the outside,
0:31:58 > 0:32:01but you come through there into the rear of the property,
0:32:01 > 0:32:05where you've got a fairly dated kitchen,
0:32:05 > 0:32:10It's not a bad size, I suppose, but it just feels like everything
0:32:10 > 0:32:12so far, a little bit claustrophobic for some odd reason.
0:32:12 > 0:32:16Off the kitchen, a shower room and, yeah,
0:32:16 > 0:32:19there's a loo in there as well. Er...
0:32:22 > 0:32:24It's...
0:32:24 > 0:32:26It's just not working for me yet.
0:32:28 > 0:32:34# I just don't know what to do with myself... #
0:32:34 > 0:32:37Now I think you know by now, I'm not one to be negative,
0:32:37 > 0:32:40but I was pretty excited about this place.
0:32:40 > 0:32:44However, the dated decor and cramped surroundings
0:32:44 > 0:32:46now have me scratching my head.
0:32:51 > 0:32:55So, upstairs, you have your three bedrooms
0:32:55 > 0:32:59and two are fairly small ones, and then across this way to...
0:32:59 > 0:33:06Well, it's not a bad size and it does have the benefit of a...
0:33:06 > 0:33:08HE CHUCKLES
0:33:08 > 0:33:11..a wardrobe conversion, is what I can call it.
0:33:11 > 0:33:12There's actually a loo in there now,
0:33:12 > 0:33:15so you do have an upstairs toilet facility,
0:33:15 > 0:33:18but it's not what I'd like to see in this kind of house,
0:33:18 > 0:33:22which should be a really good family home, so all in all...
0:33:22 > 0:33:24The inverse Tardis principle -
0:33:24 > 0:33:28it's a lot smaller inside than it looks from the outside.
0:33:30 > 0:33:35Essentially, I just don't think this house does what it says on the tin.
0:33:35 > 0:33:38# Look into my eyes
0:33:38 > 0:33:43# Would I lie to you, baby? Would I lie to you? #
0:33:45 > 0:33:46Yes, it's a three-bed semi,
0:33:46 > 0:33:49but the rooms aren't anything to write home about
0:33:49 > 0:33:53and you'll certainly need to create a bathroom up here somehow.
0:33:56 > 0:33:59So lots of work to do inside, how about outside?
0:34:03 > 0:34:05Well, thankfully, there is light at the end of my
0:34:05 > 0:34:08disappointment-it's-not-a-bit-bigger tunnel,
0:34:08 > 0:34:13because the house itself doesn't come up to scratch, however,
0:34:13 > 0:34:18the garden is huge so there is the possibility for an extension,
0:34:18 > 0:34:22either something at the back there, something that wraps around,
0:34:22 > 0:34:27either way, often it can really ruin the sense and feel of a property
0:34:27 > 0:34:29by building an extension on it, but not in this instance.
0:34:29 > 0:34:33It's crying out for it. It needs to be bigger!
0:34:33 > 0:34:36Well, as ever, you'd have to get planning permission,
0:34:36 > 0:34:40but the space out here adds some much-needed potential.
0:34:41 > 0:34:44And, guess what, it gets better.
0:34:46 > 0:34:49Now, did I mention the garden was big?
0:34:49 > 0:34:52Well, it really is very, very big
0:34:52 > 0:34:54and not only have you got that little area over there,
0:34:54 > 0:34:58you've got this plot here and the moment I thought this,
0:34:58 > 0:35:00I thought, "This is the money!"
0:35:00 > 0:35:02Because it's got a separate entrance there,
0:35:02 > 0:35:04it's a really good size,
0:35:04 > 0:35:08it's surrounded by new-builds, it's fairly flat...
0:35:08 > 0:35:12it's a building plot any day of the week and I reckon you would
0:35:12 > 0:35:15have a very good chance of getting the planning people on your side.
0:35:15 > 0:35:17There is only one small fly in the ointment
0:35:17 > 0:35:21and that is that, apparently, there is some kind of mains sewer
0:35:21 > 0:35:23travelling across the plot,
0:35:23 > 0:35:26which would affect both the extension on the house and also
0:35:26 > 0:35:29something you build here, but that isn't an insurmountable problem.
0:35:29 > 0:35:32You can build things like concrete bridges over underground sewers,
0:35:32 > 0:35:33all sorts of stuff.
0:35:33 > 0:35:37You've got to find out where it is and you've got to factor in the cost
0:35:37 > 0:35:39of doing it into your build costs, but this...
0:35:41 > 0:35:44This could really be a big earner.
0:35:44 > 0:35:46Be in no doubt though - to make money here,
0:35:46 > 0:35:49you're going to have to spend money and plenty of it.
0:35:51 > 0:35:54# It's not about the money, money, money
0:35:54 > 0:35:56# We don't need your money, money, money
0:35:56 > 0:35:59# We just wanna make the world dance
0:35:59 > 0:36:02# Forget about the price tag... #
0:36:03 > 0:36:09But with a guide price of just £125,000 that might be a good bet.
0:36:10 > 0:36:14We've asked a local property expert along to give us his opinion.
0:36:17 > 0:36:20First impressions of this property when I first saw it
0:36:20 > 0:36:23were a little bit dated, needs some work doing.
0:36:23 > 0:36:26The fact that I was drawn to immediately
0:36:26 > 0:36:27was the size of the plot
0:36:27 > 0:36:30and the potential it had to extend to the side of the property,
0:36:30 > 0:36:35particularly maybe four bedrooms, integral garage,
0:36:35 > 0:36:41en suite off the master bedroom and retain a good-sized garden as well.
0:36:41 > 0:36:44Just as I thought.
0:36:44 > 0:36:48So let's consider values and see if an extension would be worth it.
0:36:50 > 0:36:54If they were to improve the property as it stands,
0:36:54 > 0:37:01I would consider the value, resale value to be £165,000 to £170,000.
0:37:01 > 0:37:05If they were to extend the property to the side
0:37:05 > 0:37:09and improve it to a good standard,
0:37:09 > 0:37:16the resale value I would consider to be £225,000 to £230,000.
0:37:16 > 0:37:23So adding an extension could mean a £60,000 increase in valuation,
0:37:23 > 0:37:29plus an extended property would fetch around £700 per calendar month
0:37:29 > 0:37:34as opposed to just £550 if it was left as it is.
0:37:34 > 0:37:36It's all food for thought.
0:37:38 > 0:37:42Well, for once it's not the house that delivers the excitement here,
0:37:42 > 0:37:46it's the potential of what you could do with it
0:37:46 > 0:37:48with those extensions and that building plot.
0:37:48 > 0:37:52For 125,000, suddenly it's sounding like a bit of a snip.
0:37:52 > 0:37:54Let's see who agreed when it went under the hammer.
0:37:54 > 0:37:59Three-bedroomed semi-detached house, good-sized plot, off-road parking.
0:37:59 > 0:38:03100 can we say? Got to be... 100 bid. Thank you at £100,000.
0:38:03 > 0:38:08110 can I say now? 110 bid, thank you. 115?
0:38:08 > 0:38:11120. At 120. 125?
0:38:11 > 0:38:15New bidder, 121. 122.
0:38:15 > 0:38:19123, 124, 125.
0:38:21 > 0:38:24Got you, 126. 127.
0:38:24 > 0:38:29128. 129. 130. 131.
0:38:29 > 0:38:34132. 133. 134. 135.
0:38:35 > 0:38:38136. 137.
0:38:40 > 0:38:44No? £137,000 sill with you, sir.
0:38:44 > 0:38:49If not, I'm selling it at £137,000 for the first time.
0:38:49 > 0:38:52£137,000 for the second time.
0:38:52 > 0:38:57Third and final time at £137,000.
0:38:57 > 0:38:59Yours, sir. Well done.
0:39:03 > 0:39:08The successful bid came from father-and-son team Brian and David,
0:39:08 > 0:39:10who live in nearby Nantwich.
0:39:10 > 0:39:12Having recently retired, Brian is hoping
0:39:12 > 0:39:16that this first renovation project together with his son
0:39:16 > 0:39:21will pay dividends for both of them and lead to more in the future.
0:39:21 > 0:39:25- Dave, Brian, great to meet you both. - Nice to see you.- Congratulations.
0:39:25 > 0:39:29- Thank you.- Tell me why you wanted to buy this semi?
0:39:29 > 0:39:33We know the area and there's the girls grammar school,
0:39:33 > 0:39:37boys grammar school, and the primary schools got Ofsted outstanding,
0:39:37 > 0:39:40- so families want to live in this catchment area.- Right.
0:39:40 > 0:39:44- Tell me about you two then. Father and son?- Yep.
0:39:44 > 0:39:49- Both in the building trade since whatever?- Not at all.
0:39:49 > 0:39:52My father was in the care industry.
0:39:52 > 0:39:55I came out of university and wanted to get into building,
0:39:55 > 0:39:58so I've been working in his business for quite a while,
0:39:58 > 0:40:00looking after his properties.
0:40:00 > 0:40:02- Right.- We came up with the opportunity of doing this,
0:40:02 > 0:40:07so thought we'd jump and try and get into property developing.
0:40:07 > 0:40:10If I put a picture up, it would fall down the same day,
0:40:10 > 0:40:12so I don't do any manual work at all.
0:40:12 > 0:40:18- But why now?- I sold the company after 20 years or so. I'm unemployed.
0:40:18 > 0:40:21- And rich!- I'm the money man. Well, he thinks I am.
0:40:21 > 0:40:24- He's the money, I'm the worker. - He's spending it.
0:40:24 > 0:40:26So you've got a bit of cash behind you now?
0:40:26 > 0:40:28- That was the thing, yeah.- Right.
0:40:28 > 0:40:30Brian and David know their roles then,
0:40:30 > 0:40:32but it was a bumpy start at the auction.
0:40:34 > 0:40:36When we went to auction, the legal pack -
0:40:36 > 0:40:39and we watch your programme and learnt everything about it -
0:40:39 > 0:40:44the legal pack wasn't available till 20 minutes before the auction,
0:40:44 > 0:40:47so my solicitor didn't see it, so I read it
0:40:47 > 0:40:52and, at one point, we didn't think we'd bought the land at the side,
0:40:52 > 0:40:56because the lady that lived here for years and years and years
0:40:56 > 0:40:58- used the land but she never owned it. - Oh, wow.
0:40:58 > 0:41:02It was only latterly she bought it, so we were...
0:41:02 > 0:41:04We were nervous.
0:41:04 > 0:41:07We thought we might have bought a little house on a little plot
0:41:07 > 0:41:10but, actually, it didn't, we had bought the whole lot.
0:41:10 > 0:41:13So then, what are we going to do with it?
0:41:13 > 0:41:16We're going to have an L-shaped wraparound extension
0:41:16 > 0:41:19with an integrated garage, a big living area,
0:41:19 > 0:41:22kitchen area at the back with bifold doors,
0:41:22 > 0:41:27and go upstairs and have a new fourth bedroom with an en-suite.
0:41:27 > 0:41:29Two-storey extension there? Wow!
0:41:29 > 0:41:32So planning permission going to be needed for all of that then?
0:41:32 > 0:41:36Yeah, yeah, that's in the pipeline at the moment, so fingers crossed.
0:41:36 > 0:41:37Let's talk about the plot, though,
0:41:37 > 0:41:40because as soon as I saw that, I went, "Wow!"
0:41:40 > 0:41:44The potential must have hit you when you first saw this.
0:41:44 > 0:41:48I know there are issues with the sewerage, but you can get over those
0:41:48 > 0:41:50by bridging it with concrete bridges, all that kind of stuff.
0:41:50 > 0:41:53I think to try and squeeze another house on the side,
0:41:53 > 0:41:56we'd literally just be doing it for the sake of making a profit
0:41:56 > 0:42:00and, personally, I'm more interested in making a good quality house
0:42:00 > 0:42:01than an extra few thousand.
0:42:01 > 0:42:04I'm sure Dad will disagree with me there slightly,
0:42:04 > 0:42:07but I think the extension work will bring enough profit
0:42:07 > 0:42:09out of this house and I'll be happy to walk away
0:42:09 > 0:42:12and say we've made a good house. We've done a good job.
0:42:12 > 0:42:15The boys have big renovation plans for the existing house
0:42:15 > 0:42:21and Brian's budget of £50,000, plus a £10,000 contingency
0:42:21 > 0:42:24reflects the scale of the work required.
0:42:24 > 0:42:26They've set a timescale of six months
0:42:26 > 0:42:30and then it's going on the market, and Brian is expecting good results.
0:42:30 > 0:42:34What kind of potential profit do you think there might be here?
0:42:34 > 0:42:38The target is 50,000.
0:42:38 > 0:42:41If we don't make 30,000, we will be extremely disappointed.
0:42:41 > 0:42:45If this can be a good four-bedroom family home within a very quiet,
0:42:45 > 0:42:49sought-after area, and if he does what he should do
0:42:49 > 0:42:52and makes sure that when you next come, you say,
0:42:52 > 0:42:54"Ooh, this is done to a very high standard,"
0:42:54 > 0:42:56I think we can put a premium price on it.
0:42:56 > 0:42:59Breaking even would not be acceptable
0:42:59 > 0:43:02and losing money certainly wouldn't be acceptable.
0:43:02 > 0:43:05- Not for the first house, absolutely not.- Good luck with it.- Thank you.
0:43:05 > 0:43:09I hope the house is improved and your relationship survives.
0:43:09 > 0:43:11Only time will tell.
0:43:12 > 0:43:14Well, it's nice to hear Dave and Brian
0:43:14 > 0:43:18acknowledging that it's not always just about maximising the profit,
0:43:18 > 0:43:21it's actually doing a job you're proud of.
0:43:21 > 0:43:23Well, that certainly Dave's view anyway.
0:43:23 > 0:43:25Will there be family squabbles?
0:43:25 > 0:43:28Will they get it done in time and on budget?
0:43:28 > 0:43:31You can find out later in the show.
0:43:34 > 0:43:37We've seen how one property fared, but what about the other two?
0:43:37 > 0:43:40Yeah, shall we have a look and see if they stuck to their budgets?
0:43:40 > 0:43:41Take a look at this.
0:43:43 > 0:43:46It was in East London and the area of Plaistow where we first
0:43:46 > 0:43:50came across a three-bedroomed terraced house.
0:43:50 > 0:43:53With bay window, authentic pargeting and character features,
0:43:53 > 0:43:58from the outside this house looked full of charm. But inside...
0:43:58 > 0:44:00Oh, dear.
0:44:00 > 0:44:03This ceiling, I've never seen anything like this before.
0:44:03 > 0:44:06They've really gone to town. It's everywhere as well. Wow!
0:44:06 > 0:44:09So, cosmetically, this house was a little rough
0:44:09 > 0:44:11and it was starting to show its age.
0:44:12 > 0:44:14And with no banister rail on the stairs,
0:44:14 > 0:44:18a rather sorry-looking, leaky rear extension that housed the kitchen
0:44:18 > 0:44:22and the only bathroom, and with two of the three bedrooms best described
0:44:22 > 0:44:26as compact, it wasn't quite living up to the promise it showed outside.
0:44:28 > 0:44:31So lots of room for improvement which, of course,
0:44:31 > 0:44:35actually meant it could be a perfect investment opportunity.
0:44:35 > 0:44:38Which is what rookie property developer Jane was hoping
0:44:38 > 0:44:40when she purchased it from auction.
0:44:42 > 0:44:44Sold 277. Well done.
0:44:45 > 0:44:49And this house was to be Jane's biggest renovation to date
0:44:49 > 0:44:52after stepping away from a career in local authority housing,
0:44:52 > 0:44:54a job she had done for 25 years.
0:44:57 > 0:45:02I just wanted to have a chance to be my own boss, not look back
0:45:02 > 0:45:04and think, "I could have done that, and I just didn't."
0:45:04 > 0:45:07So it was the right time for me to leave.
0:45:07 > 0:45:10It's a bit of a risk but I think the property market
0:45:10 > 0:45:12the way it is at the moment, it will be OK.
0:45:13 > 0:45:18# This is my time to hold the world within my hands
0:45:18 > 0:45:22# Let 'em know I'm here
0:45:22 > 0:45:23# That I've got no fear. #
0:45:23 > 0:45:26Yes, it's never easy changing careers after such a long time,
0:45:26 > 0:45:30as I well know, but with a budget of £25,000,
0:45:30 > 0:45:33she was hoping, with the help of a builder, to get it ready
0:45:33 > 0:45:35for the rental market in just eight weeks.
0:45:40 > 0:45:42And now, bang on that eight-week schedule,
0:45:42 > 0:45:44we're back with Jane to check on progress.
0:46:05 > 0:46:09For me, the major change was just the light downstairs,
0:46:09 > 0:46:11because it was so dark and at one point
0:46:11 > 0:46:15I was thinking it was not going to look good at all, but...
0:46:15 > 0:46:17It just makes it a bigger house.
0:46:17 > 0:46:19It certainly does.
0:46:19 > 0:46:20Goodbye textured ceilings
0:46:20 > 0:46:24and the rest of it's not looking back either.
0:46:33 > 0:46:37I'm so glad Jane has resolved that dangerous staircase. Very nice too.
0:46:39 > 0:46:42But, upstairs, there's something I didn't expect.
0:46:45 > 0:46:48OK, well, previously this was divided into two.
0:46:48 > 0:46:50There was a corridor here
0:46:50 > 0:46:55and one tiny bedroom here, which was only really big enough for a cot
0:46:55 > 0:46:57and then one single room,
0:46:57 > 0:47:00so what we've done is we've put it back as one big double bedroom
0:47:00 > 0:47:03and I think it just works much better this way.
0:47:03 > 0:47:08# Yeah, it's always better when we're together... #
0:47:08 > 0:47:10Yes, there's no doubting in this case
0:47:10 > 0:47:12it's better to have two bigger bedrooms
0:47:12 > 0:47:15than three of those compact single rooms.
0:47:18 > 0:47:21And outside to the rear it's also looking much better
0:47:21 > 0:47:25with a storage shed looking smarter and being put to good use.
0:47:25 > 0:47:28I'm glad to see that like me, or any of us, Jane doesn't favour
0:47:28 > 0:47:32the eccentric guttering solution and she's tackled that damp issue.
0:47:34 > 0:47:38How we sorted out the water leak in the kitchen was that there
0:47:38 > 0:47:41were some problems with where the chimney met the roof,
0:47:41 > 0:47:44so all the flaunching had to be replaced there.
0:47:44 > 0:47:46We took the roof off, cleaned it all up
0:47:46 > 0:47:48and also replaced all the guttering.
0:47:48 > 0:47:50The drains were also blocked at the back
0:47:50 > 0:47:54and what had happened is the render had soaked up all the water
0:47:54 > 0:47:57into the walls but, once the drains were all unblocked,
0:47:57 > 0:47:59that resolved that problem.
0:48:00 > 0:48:04Well, I think this place is a winner and a credit to Jane's builder
0:48:04 > 0:48:06and her project managing skills.
0:48:06 > 0:48:09They actually completed the work in just seven weeks
0:48:09 > 0:48:15and she's only £2,000 over her original budget, spending £27,000.
0:48:17 > 0:48:20You can't kind of half refurbish a whole house.
0:48:20 > 0:48:23Once you get started, you just have to keep going really.
0:48:25 > 0:48:30A £27,000 spend on top of her £277,000 purchase price
0:48:30 > 0:48:33takes Jane's total cost to 304,000.
0:48:33 > 0:48:35But is her texture-free house
0:48:35 > 0:48:39now smooth and sophisticated enough for the local market?
0:48:39 > 0:48:41What do two local estate agents think?
0:48:43 > 0:48:47I think the owner has done a fantastic job with the renovation.
0:48:47 > 0:48:51What really works is the kitchen and separate toilet and bathroom.
0:48:51 > 0:48:54I think the property has been renovated to a very high standard.
0:48:54 > 0:48:55The kitchen is brilliant.
0:48:55 > 0:49:00It's very light and bright and the bedrooms are fantastic,
0:49:00 > 0:49:02and it would make a lovely family home.
0:49:02 > 0:49:04I think what this property could've benefited from
0:49:04 > 0:49:05is a separate reception.
0:49:05 > 0:49:09This could've been achieved by putting a partition downstairs
0:49:09 > 0:49:13and moving the entrance further down the hallway, underneath the stairs.
0:49:13 > 0:49:17I think converting it back to a two-bedroom house is much better
0:49:17 > 0:49:21than a three-bedroom house, as the two front bedrooms were very small.
0:49:21 > 0:49:25Jane wants to hang on to the house and put it on to the rental market,
0:49:25 > 0:49:29but having spent £304,000, is it currently a good investment?
0:49:32 > 0:49:35I think that this property would resell
0:49:35 > 0:49:40for £285,000 to £295,000.
0:49:40 > 0:49:44As a sale value, I anticipate this property can sell for £300,000.
0:49:44 > 0:49:45I'm a little bit surprised.
0:49:45 > 0:49:48I think they're a little bit on the low side,
0:49:48 > 0:49:50but I'm not intending to sell,
0:49:50 > 0:49:53so it's not really an issue for me at the moment.
0:49:53 > 0:49:57Good thing too, as she may be currently looking at a small loss,
0:49:57 > 0:50:00but then, as she said, it was never about the resale.
0:50:00 > 0:50:02It's rental values that count.
0:50:04 > 0:50:09I think this property would rent for £1,200 to £1,300 per month.
0:50:09 > 0:50:10For rental purposes,
0:50:10 > 0:50:14I feel this property can achieve £1,300 per calendar month.
0:50:14 > 0:50:17I think they're good rental values.
0:50:17 > 0:50:19I'd be pleased to get that, so that's good.
0:50:19 > 0:50:22It's pretty much what I expected.
0:50:22 > 0:50:25That top rental figure of £1,300 per calendar month
0:50:25 > 0:50:28would give Jane just over a 5% yield,
0:50:28 > 0:50:32but is it enough for her to continue pursuing her new career path?
0:50:34 > 0:50:36Yeah, I'm very keen to carry on.
0:50:36 > 0:50:39I've got three rental properties now
0:50:39 > 0:50:43and I'm hoping maybe to buy another one at auction. I enjoyed that.
0:50:43 > 0:50:46It's really good to buy property that needs a lot of work
0:50:46 > 0:50:49and then work it through and see what improvements
0:50:49 > 0:50:52you can make to it, so I'm hoping to carry on.
0:50:55 > 0:50:58- MARTIN:- We return now to Wheelock, in Cheshire,
0:50:58 > 0:51:03where this three-bed semi seemed to defy normal dimension conventions.
0:51:03 > 0:51:07It looked big enough on the outside but inside...
0:51:07 > 0:51:10Er...the inverse Tardis principle -
0:51:10 > 0:51:13it's a lot smaller inside than it looks from the outside.
0:51:16 > 0:51:18But while it was small on the inside,
0:51:18 > 0:51:21outside was a very different story.
0:51:21 > 0:51:25This is the money because it's got a separate entrance there,
0:51:25 > 0:51:30it's a really good size, it's a building plot any day of the week.
0:51:30 > 0:51:33Brian and his son, David, decided to take this on
0:51:33 > 0:51:36as their first renovation project together,
0:51:36 > 0:51:39paying £137,000 at auction.
0:51:39 > 0:51:43It was clear right away how their partnership would work.
0:51:43 > 0:51:47If I put a picture up, it would fall down the same day,
0:51:47 > 0:51:49so I don't do any manual work at all.
0:51:49 > 0:51:53- I'm the money man, well, he thinks I am.- He's the money, I'm the worker.
0:51:53 > 0:51:55He's spending it.
0:51:55 > 0:51:58Well, spending money is one thing, time is another.
0:51:58 > 0:52:01They had a six-month timescale.
0:52:01 > 0:52:0318 months later, we're back.
0:52:06 > 0:52:10As they promised, they've added a two-storey extension
0:52:10 > 0:52:14and that's allowed for a number of layout changes,
0:52:14 > 0:52:17like downstairs, moving the staircase
0:52:17 > 0:52:20and then putting the kitchen in the extension.
0:52:20 > 0:52:23This means the house has lots more space.
0:52:27 > 0:52:30And upstairs, increasing the square footage has allowed them
0:52:30 > 0:52:34to have a family bathroom and a master bed with an en suite.
0:52:36 > 0:52:37That's a big improvement
0:52:37 > 0:52:40on the cupboard conversion toilet of before.
0:52:40 > 0:52:45Plus, they've improved two existing bedrooms and added another.
0:52:45 > 0:52:50Phew! I think that everything but let's check with Brian and David.
0:52:50 > 0:52:54Given the size of the house, I'd pour another cup of tea.
0:52:54 > 0:52:55This is going to take a while.
0:52:57 > 0:53:02The original plans for the project have held straight through.
0:53:02 > 0:53:06Total L-shaped wraparound extension, two storey, built-in garage.
0:53:06 > 0:53:09In terms of what we've done, what work we've done,
0:53:09 > 0:53:11is easier to say what we haven't done.
0:53:11 > 0:53:17The only original part of the house that's left is the brickwork.
0:53:17 > 0:53:21Because the extension was so large and such a big part of the project,
0:53:21 > 0:53:25it seemed silly to try and patch up old things in the original house.
0:53:25 > 0:53:27As my dad will tell you, I don't patch things up.
0:53:27 > 0:53:30If it gets done, it gets done right the first time.
0:53:30 > 0:53:33Every time there was an option, he took the most expensive option.
0:53:33 > 0:53:36So if you look at the doors, for instance,
0:53:36 > 0:53:39I'd like these doors in my house. Have you seen the door handles?
0:53:39 > 0:53:40All the fittings?
0:53:40 > 0:53:43They're beautiful but every time he came with an option,
0:53:43 > 0:53:47it was always the most expensive that he took.
0:53:47 > 0:53:51# I want to thank you, Mr Perfect
0:53:51 > 0:53:54# For finding so much fault in me... #
0:53:54 > 0:53:57So, Mr Perfectionist David has really shown
0:53:57 > 0:53:59the quality of his work here.
0:53:59 > 0:54:02They decided not to build another house on the empty land.
0:54:02 > 0:54:06Wise decision, as doing just the existing house
0:54:06 > 0:54:09was an all-hands-to-the-pump job.
0:54:09 > 0:54:11So did Dad get involved?
0:54:12 > 0:54:17With regard to my DIY skills, or lack of DIY skills,
0:54:17 > 0:54:19I still lack them, Dave has done this.
0:54:19 > 0:54:23All I've done is provided the money up until the last three weeks
0:54:23 > 0:54:27when the race has been on and we've been here till gone midnight,
0:54:27 > 0:54:29decorating, painting, cleaning,
0:54:29 > 0:54:33otherwise we'd have never finished the job
0:54:33 > 0:54:35and I'd like to show you my blisters.
0:54:35 > 0:54:39The last three weeks really should have got some recognition.
0:54:39 > 0:54:43- The painting was OK. - THEY LAUGH
0:54:43 > 0:54:47Perfection takes time but it helps if you've cost it beforehand
0:54:47 > 0:54:50and you don't have to wait for planning permission.
0:54:50 > 0:54:51That's not what happened here.
0:54:54 > 0:54:58When you buy at auction and you take the property very quickly,
0:54:58 > 0:55:00then you really want to go for it.
0:55:00 > 0:55:04David had to waste a lot of time in the early stages just clearing
0:55:04 > 0:55:08out really because he didn't have the permission to move.
0:55:08 > 0:55:11We didn't really sit down at the start of the project
0:55:11 > 0:55:15and hammer out the full price and everything that was going to cost.
0:55:15 > 0:55:18We'd never done a project this size before with the extension,
0:55:18 > 0:55:22so we didn't have a clue on the prices of materials and such.
0:55:22 > 0:55:25And I remember telling you that I'd bought a house at auction
0:55:25 > 0:55:27and then you destroyed it.
0:55:27 > 0:55:29- I've made it better. - Now you have, yeah.
0:55:32 > 0:55:35While we're talking about money, I'm almost afraid to ask.
0:55:38 > 0:55:44In terms of the budget, you'll recall that I set £50,000 aside
0:55:44 > 0:55:47with a contingency for £10,000,
0:55:47 > 0:55:50and that proved to be wholly inadequate.
0:55:50 > 0:55:53In fact, it got to the stage when every call David made to me
0:55:53 > 0:55:59was more money, more money, so we've doubled the budget,
0:55:59 > 0:56:02but I'm very proud of what he's done and it is beautiful.
0:56:04 > 0:56:05So there you have it.
0:56:05 > 0:56:06£100,000 later
0:56:06 > 0:56:09and lovely it is, I agree.
0:56:09 > 0:56:12And I'll bet these two estate agents think so too.
0:56:13 > 0:56:15I'm really impressed with what they've done here.
0:56:15 > 0:56:20The extension is absolutely fantastic, very high specification.
0:56:20 > 0:56:21The layout works very well.
0:56:21 > 0:56:25They've included bifold doors, which is very popular at the moment
0:56:25 > 0:56:30and I like the fact that they've done quite a large live-in kitchen.
0:56:30 > 0:56:34Perfectionism has cost £100,000
0:56:34 > 0:56:38on top of the £137,000 purchase price.
0:56:38 > 0:56:46And that brings the total investment to £237,000 and - big gulp -
0:56:46 > 0:56:48remember, the first time we were here,
0:56:48 > 0:56:51the agent thought an extended property
0:56:51 > 0:56:56could sell for £225,000 to £230,000, so can they possibly make a profit?
0:56:58 > 0:57:03If this was on the sale market, I would put it at a value of 245,000.
0:57:03 > 0:57:06The value of the property I would consider now to be
0:57:06 > 0:57:12in the region of £245,000 to £250,000.
0:57:12 > 0:57:17The top valuation would mean a potential pre-tax profit of £13,000.
0:57:17 > 0:57:20So what do they feel about that?
0:57:20 > 0:57:22We were really hoping to get 275.
0:57:22 > 0:57:25Given the amount of land that's here and the size of the property,
0:57:25 > 0:57:28we thought it would've commanded more than that.
0:57:28 > 0:57:31In fact, they've decided to put the house on the market
0:57:31 > 0:57:35for offers of 275,000 to 300,000.
0:57:35 > 0:57:38Meanwhile, father and son have plans.
0:57:39 > 0:57:43I sold my company, bought a lovely place in Cornwall,
0:57:43 > 0:57:46got two smashing dogs and I enjoy life.
0:57:46 > 0:57:49I've no intention of getting any more blisters on my hands,
0:57:49 > 0:57:52so I would like him to have his own money
0:57:52 > 0:57:56and for him to go on to build his property portfolio.
0:57:56 > 0:57:58Yeah, I totally agree with that
0:57:58 > 0:58:01and as soon as he transfers that money into my account,
0:58:01 > 0:58:04then he can go back down to his lovely home down there
0:58:04 > 0:58:07and I'll carry on working up here. That's fine.
0:58:10 > 0:58:11Well, that's it for today's show.
0:58:11 > 0:58:14Join us for more properties from the auctions
0:58:14 > 0:58:15up and down the country next time.
0:58:15 > 0:58:18- Yeah, you wouldn't want to miss it. - See you soon. ALL: Goodbye.