0:00:02 > 0:00:03Hello and welcome to bonny Scotland.
0:00:03 > 0:00:06Now, not everybody's home can be as gorgeous and grand as this one.
0:00:06 > 0:00:09Yeah, but we know somewhere where you might find something with
0:00:09 > 0:00:12a bit of character, and it might even be a bargain, as well.
0:00:12 > 0:00:15Yes. Why don't you head down to your local property auction?
0:00:42 > 0:00:45People buy property through auctions almost every day.
0:00:45 > 0:00:48And here on Homes Under The Hammer, we just love to hear their stories.
0:00:48 > 0:00:52Yeah. So, what are the properties that we have on offer for you today?
0:00:54 > 0:00:57In Codnor, Derbyshire, this two-bedroomed bungalow
0:00:57 > 0:00:59is giving me that sinking feeling.
0:00:59 > 0:01:03To exaggerate, the house is like that!
0:01:03 > 0:01:06While in South Norwood, London, I'm feeling underwhelmed
0:01:06 > 0:01:09by this open-plan living room, er... kitchen?
0:01:09 > 0:01:14It's just a couple of units. I would call it a suggestion of the kitchen.
0:01:14 > 0:01:15And in Stockton on Tees,
0:01:15 > 0:01:19this three-storey property has got me feeling inspired.
0:01:19 > 0:01:25Down here, you've got what looks like a bit of Jackson Pollock art.
0:01:25 > 0:01:28All these properties were bought at auction. We'll find out who got them
0:01:28 > 0:01:32and how much they paid for them when these homes went under the hammer.
0:01:32 > 0:01:34Well done, sir.
0:01:38 > 0:01:41I'm in the Amber Valley, in Derbyshire,
0:01:41 > 0:01:42and the village of Codnor,
0:01:42 > 0:01:45a traditional, old industrial village
0:01:45 > 0:01:49close to both Derby and Nottingham.
0:01:49 > 0:01:52Well, just away from the main part of the village, but still
0:01:52 > 0:01:55with easy access to local shops, is the property I'm here to see.
0:01:55 > 0:01:59Now, it is just off this fairly busy road, but the good news is
0:01:59 > 0:02:03it's set slightly down in this bit of a hollow.
0:02:03 > 0:02:07It's a two-bedroom, semidetached bungalow.
0:02:07 > 0:02:10Well, you know, it looks a bit interesting from the outside.
0:02:10 > 0:02:15The guide price, though, is £35,000.
0:02:15 > 0:02:17Hmm. Suspicious.
0:02:20 > 0:02:23Ah-ha!
0:02:23 > 0:02:27Right. Well, let me show you what's OK first.
0:02:27 > 0:02:29This is the kitchen.
0:02:29 > 0:02:32Nice bit of wood panelling. It's not a bad size.
0:02:33 > 0:02:37Big window out onto the garden.
0:02:37 > 0:02:39Little utility area at the back.
0:02:39 > 0:02:41Right. That's the good bit.
0:02:41 > 0:02:46From there on in, this place heads rapidly downstream.
0:02:46 > 0:02:49It is in a complete state. I mean...
0:02:49 > 0:02:52Things hanging off the wall...
0:02:56 > 0:02:58That is not good.
0:02:58 > 0:03:02OK, I was expecting things to be wrong with the walls, perhaps,
0:03:02 > 0:03:06but a floor? I don't know what's gone on here.
0:03:06 > 0:03:09You've got some kind of tarmac-y, bitumen-type stuff
0:03:09 > 0:03:12on top of rubble, and I bet, I don't know...
0:03:17 > 0:03:19I mean, what's going on there?
0:03:19 > 0:03:22This house really has got problems.
0:03:22 > 0:03:25Let's see if it gets
0:03:25 > 0:03:27any better as I head down into the house.
0:03:27 > 0:03:31And when I say DOWN into the house,
0:03:31 > 0:03:33I mean down.
0:03:34 > 0:03:38It's like a hill as you walk towards the rear of the property.
0:03:40 > 0:03:42It seems to be sinking quite significantly,
0:03:42 > 0:03:46hopefully not as we speak, into that corner over there,
0:03:46 > 0:03:49so, to exaggerate, the house is like that.
0:03:50 > 0:03:54I'm not exaggerating that much, though.
0:03:54 > 0:03:55You have to question yourself.
0:03:55 > 0:03:58It's like one of those fairground things where you go in
0:03:58 > 0:04:00and there's mirrors and the floor moves.
0:04:00 > 0:04:02You have to keep correcting in your head and thinking,
0:04:02 > 0:04:04is something wrong with me, or is it the house?
0:04:04 > 0:04:07No. In this case it's the house. It is a complete disaster.
0:04:07 > 0:04:10In terms of layout, if it was flat, it would be fantastic,
0:04:10 > 0:04:12because that works well at the front.
0:04:12 > 0:04:17You've then got a bathroom there and two decent-sized bedrooms here.
0:04:17 > 0:04:19As I said, in terms of a layout of a bungalow,
0:04:19 > 0:04:21I think it works quite well.
0:04:21 > 0:04:24Just not the angle, that's not good.
0:04:24 > 0:04:27I mean, it's really, really not good.
0:04:27 > 0:04:30# Slip sliding away
0:04:30 > 0:04:35# Slip sliding away
0:04:35 > 0:04:38# You know the nearer your destination
0:04:38 > 0:04:41# The more you're slip sliding away... #
0:04:41 > 0:04:44Well, yes, it might be hard to see from the pictures, but believe me,
0:04:44 > 0:04:47this place is on the slide.
0:04:47 > 0:04:50There are some serious structural issues to be addressed,
0:04:50 > 0:04:53and, at the very least, I guess it will need to be underpinned.
0:04:53 > 0:04:57It will certainly need a new damp-proof course put in,
0:04:57 > 0:05:00new floors, or more accurately, a flat-level floor.
0:05:00 > 0:05:03And then, as for the rest, it's gutting the place
0:05:03 > 0:05:04and starting again,
0:05:04 > 0:05:07so I fear it may be a drain on your finances.
0:05:07 > 0:05:10Well, one good thing you can say about the house is that
0:05:10 > 0:05:14once you come outside it actually gets quite...positive.
0:05:14 > 0:05:17The land it sits on, the plot itself,
0:05:17 > 0:05:20is actually pretty well-sized.
0:05:20 > 0:05:22There is even scope I would say around the side there
0:05:22 > 0:05:25for some kind of extension.
0:05:25 > 0:05:29And then to the front of the property, a half-decent garden
0:05:29 > 0:05:31with nice shrubs, a few nice trees.
0:05:31 > 0:05:33You are on the side of this busy road,
0:05:33 > 0:05:36which is a bit of a disadvantage, as I said,
0:05:36 > 0:05:39but all in all, the plot this little bungalow is on is great.
0:05:42 > 0:05:45It's just the bungalow itself, which isn't.
0:05:47 > 0:05:52# Miniature disasters and minor catastrophes
0:05:54 > 0:05:57# Bring me to my knees
0:05:57 > 0:06:00# Well, I must be my own master
0:06:00 > 0:06:06# Or a miniature disaster will be
0:06:06 > 0:06:09# It will be the death of me... #
0:06:09 > 0:06:12Hm, so is there much hope for this small
0:06:12 > 0:06:15two-bed bungalow with big problems?
0:06:15 > 0:06:17What does the auctioneer who sold it think?
0:06:20 > 0:06:24This is a bit of an interesting property.
0:06:24 > 0:06:28I suppose you could call it quaint. There's not a lot to it.
0:06:28 > 0:06:32But it is obviously very much down at heel
0:06:32 > 0:06:35and needs everything doing to it to restore it, really.
0:06:35 > 0:06:38The positives are basically it's set back off the roadway.
0:06:38 > 0:06:40It has potential parking,
0:06:40 > 0:06:43subject to removing a bit of overgrowth outside.
0:06:43 > 0:06:47Looking at it from a pessimistic point of view,
0:06:47 > 0:06:49one needs to be careful what you spend
0:06:49 > 0:06:52because it certainly will have a ceiling value.
0:06:52 > 0:06:54Yes, that's certainly a factor.
0:06:54 > 0:06:58But the bungalow was guided at £35,000,
0:06:58 > 0:07:02so how far off that ceiling was the guide price?
0:07:02 > 0:07:06I don't think if you renovate this without adding to it
0:07:06 > 0:07:10you're going to be able to push its value much over £90,000-£100,000.
0:07:10 > 0:07:14And how might it fair on the rental market?
0:07:14 > 0:07:17I would say once this is renovated it would have a rental value
0:07:17 > 0:07:21in the region of £400 a calendar month.
0:07:22 > 0:07:28Well, even with that relatively low £35,000 guide price,
0:07:28 > 0:07:31you're going to have to think very carefully
0:07:31 > 0:07:33before you take this project on.
0:07:33 > 0:07:38That said, the plot alone could well be worth that money.
0:07:38 > 0:07:41And if it came to planning permission,
0:07:41 > 0:07:42you've already got a house here,
0:07:42 > 0:07:45so what I suggest you do is knock it down and start again.
0:07:45 > 0:07:47The planners would look favourably on that.
0:07:47 > 0:07:50So it's the project and half for whoever took it on.
0:07:50 > 0:07:54Let's find out who that was when it went under the hammer.
0:07:54 > 0:07:55Lot number 18.
0:07:55 > 0:07:57£40,000 to start.
0:07:57 > 0:07:5940. 40 is bid. Thank you.
0:07:59 > 0:08:0241 somewhere? 41.
0:08:02 > 0:08:05At 41. 42.
0:08:05 > 0:08:0942. Thank you. At 42. 43 is bid.
0:08:09 > 0:08:13- 44.- There was a lot of interest in this property at the auction.
0:08:13 > 0:08:16We return when the bids had reached 59,000.
0:08:16 > 0:08:1859.
0:08:18 > 0:08:2159,500.
0:08:21 > 0:08:22500.
0:08:22 > 0:08:2460,000.
0:08:24 > 0:08:26At 60,000. 500.
0:08:28 > 0:08:33At £60,500. Once, twice, third time.
0:08:33 > 0:08:36Sold at 60,500.
0:08:36 > 0:08:41So for £60,500 the successful bidders were local couple
0:08:41 > 0:08:43John and Cath.
0:08:43 > 0:08:47John was once an engineer on oil ships, which is lucky since
0:08:47 > 0:08:51you'd need a good pair of sea legs to deal with the ups and downs
0:08:51 > 0:08:52and slopes of the floor,
0:08:52 > 0:08:56and I really hope they know what they've let themselves in for.
0:08:56 > 0:09:02# Tell me that you'll open your eyes... #
0:09:02 > 0:09:05- John, Cath, great to meet you both. - Nice meeting you.
0:09:05 > 0:09:09I hope you've walked into this project with your eyes open.
0:09:09 > 0:09:11Half open, really.
0:09:11 > 0:09:14- I didn't see as much as I thought it was.- How do you mean?
0:09:14 > 0:09:17A bit more what work than I thought it would.
0:09:17 > 0:09:23Never counted on the floors, never counted on the damp courses,
0:09:23 > 0:09:26never counted on the slope of the house.
0:09:26 > 0:09:30Right. Are you a couple who like a challenge?
0:09:30 > 0:09:32I do, I like a challenge.
0:09:32 > 0:09:36- I do it for a hobby, it's not my job.- A hobby?- A hobby. Right.
0:09:36 > 0:09:41- What was it? 12 months ago we bought one in Derby.- Right.
0:09:41 > 0:09:44So we done that one.
0:09:44 > 0:09:46- A year later we bought this one. - Wow!
0:09:46 > 0:09:49John, tell me about your background.
0:09:49 > 0:09:50I done engineering.
0:09:50 > 0:09:54A long time. I worked in engineering for 18 years.
0:09:54 > 0:09:58And then we started temporary foster carers,
0:09:58 > 0:10:02- we've been foster carers for 28 years.- Well done.
0:10:02 > 0:10:04- 28 and a half years.- Great.
0:10:04 > 0:10:07- How many children have been through your home?- Lost count.
0:10:07 > 0:10:09But not hundreds because we do long-term,
0:10:09 > 0:10:12so they stay a long time with us,
0:10:12 > 0:10:15so they are not coming and going all the time.
0:10:15 > 0:10:20And we obviously...want to retire.
0:10:20 > 0:10:23- So we have that plan in mind. - Oh, great.- Yeah.
0:10:23 > 0:10:26- Is the idea to do it up for you? - That's what we're going to do.
0:10:26 > 0:10:28Well, despite all the downsides
0:10:28 > 0:10:30and the mountain of work to be tackled,
0:10:30 > 0:10:33John seems really confident that he can turn this wreck around
0:10:33 > 0:10:38and get it shipshape again to make it a great home for him and Cath.
0:10:38 > 0:10:42Tell me what the plan to sort it out is.
0:10:42 > 0:10:45Start off and underpin it from the other side.
0:10:45 > 0:10:46Underpinned from the other side.
0:10:46 > 0:10:48Lots of concrete, get it underpinned,
0:10:48 > 0:10:51- get the structure sorted out. - That is the main thing.
0:10:51 > 0:10:54Then the floors, what are you going to do with this?
0:10:54 > 0:10:56This one is going to be dug up
0:10:56 > 0:10:59to almost to where the foundations start.
0:10:59 > 0:11:03And then internally, what are the plans layout-wise?
0:11:03 > 0:11:07Well, this one is going to be open-plan all the way around here.
0:11:07 > 0:11:09That bathroom will be changed into the far corner,
0:11:09 > 0:11:12so there's no bathroom on the other side,
0:11:12 > 0:11:15so the whole lot is going to be one open-plan.
0:11:15 > 0:11:17As well as the open-plan kitchen/diner,
0:11:17 > 0:11:20John and Cath intend on building into the attic,
0:11:20 > 0:11:24installing a dormer window for a third bedroom with en suite.
0:11:24 > 0:11:27How much of the work are you going to do yourself?
0:11:27 > 0:11:30- 89%- Really?- Yeah.
0:11:30 > 0:11:32Most of the work will be me.
0:11:32 > 0:11:34What's the timescale for sorting it?
0:11:34 > 0:11:37- Up to 12 months.- Right.
0:11:37 > 0:11:40What sort of budget have you put aside?
0:11:40 > 0:11:44My wife had suggested that I'm going to do it for £15,000.
0:11:44 > 0:11:47- 15?- Yeah. - If he's doing it all himself.
0:11:47 > 0:11:49- And I think it's going to require a little bit more.- No kidding.
0:11:49 > 0:11:53I think it is going to be between 25 and 30,000.
0:11:53 > 0:11:55I know it's going to be worth it in the end
0:11:55 > 0:11:58because John is very clever, very good at what he does.
0:11:58 > 0:12:01- Wow!- It's nice encouragement, isn't it?
0:12:01 > 0:12:04It's great. There's a lot of people out there
0:12:04 > 0:12:06who would probably be scared by what's ahead.
0:12:06 > 0:12:10- Not really, I'm not fazed at all. - No.- I think I can do it.
0:12:10 > 0:12:13Well, listen, brilliant. I wish you all the very best.
0:12:13 > 0:12:15Thank you.
0:12:15 > 0:12:20Well, this really is vintage Homes Under The Hammer, isn't it?
0:12:20 > 0:12:25You start off thinking John and Cath were possibly ill-advised
0:12:25 > 0:12:29to buy this place, and by the end of hearing them speak
0:12:29 > 0:12:31you just wish them all the best, really.
0:12:31 > 0:12:35But, heck, there's a lot to do.
0:12:35 > 0:12:38Find out what happens later in the show.
0:12:45 > 0:12:48London's South Norwood might have been a little left behind
0:12:48 > 0:12:51with all the improvements in West and Upper Norwood,
0:12:51 > 0:12:54but that's changing as people are moving further along the train line
0:12:54 > 0:12:56to get far more for their money.
0:12:56 > 0:13:00City workers like South Norwood because of its fast train links
0:13:00 > 0:13:03into Central London and nearby Croydon.
0:13:03 > 0:13:06It might be relatively more affordable now,
0:13:06 > 0:13:10but like most parts of the country, prices are rising and fast.
0:13:12 > 0:13:14Well, this is a popular street,
0:13:14 > 0:13:16although there is a school along this road
0:13:16 > 0:13:18and so it can get a little bit busy.
0:13:18 > 0:13:20But we at least there are speed bumps so
0:13:20 > 0:13:22the cars won't be whizzing past too quickly.
0:13:22 > 0:13:26And speaking of cars, well, I can see the flat I'm here to see today,
0:13:26 > 0:13:29it's got off-street parking over there, which is great news.
0:13:29 > 0:13:35It also has three bedrooms and a guide price of £200,000.
0:13:41 > 0:13:44Great to have your own front door on a property like this.
0:13:44 > 0:13:49Straight away, it feels really big, I do love these purpose-built blocks
0:13:49 > 0:13:51because they're just so functional.
0:13:51 > 0:13:53You've got a nice big bedroom here, another one through here,
0:13:53 > 0:13:56another one through there, the bathroom.
0:13:56 > 0:13:59I mean, it really does feel solid.
0:13:59 > 0:14:02What a fantastic room. A great size.
0:14:02 > 0:14:04Hm, this wallpaper is everywhere,
0:14:04 > 0:14:07although I can see through the hall somebody started to take that off,
0:14:07 > 0:14:09and it's a nightmare to get off.
0:14:09 > 0:14:12So good job, some of it has already been done.
0:14:12 > 0:14:14Now, this kitchen...
0:14:14 > 0:14:16It's not really a kitchen, it's just a couple of units,
0:14:16 > 0:14:19I would call it a suggestion of a kitchen.
0:14:19 > 0:14:22And I am not really sure that it works here,
0:14:22 > 0:14:26but there is a big old giveaway of what was through here...
0:14:26 > 0:14:27serving hatch.
0:14:27 > 0:14:31I think that kitchen probably used to live in there.
0:14:31 > 0:14:33But we will have more of a chat about that later on.
0:14:33 > 0:14:35But not a bad space.
0:14:35 > 0:14:37You could really do a lot with this property.
0:14:37 > 0:14:40So far I'm really liking what I'm seeing.
0:14:40 > 0:14:43Well, yeah, apart from the mini-kitchen stuck in
0:14:43 > 0:14:45the corner of the living room, that is.
0:14:45 > 0:14:47I mean, there's barely enough room for a chopping board
0:14:47 > 0:14:51on those worktops, even if you added a cooker in the designated space,
0:14:51 > 0:14:54this kitchenette is not doing it for me.
0:14:54 > 0:14:59# Oh, come with me
0:14:59 > 0:15:03# To my little corner of the world... #
0:15:03 > 0:15:06So would it be better to make this kitchen bigger
0:15:06 > 0:15:08and keep it in this position
0:15:08 > 0:15:11or move it back to its original home in the third bedroom?
0:15:11 > 0:15:15My advice, ask the opinion of a local estate agent
0:15:15 > 0:15:18and find out what the market around here demands.
0:15:18 > 0:15:23Now I'm going to venture outside and that's good news because it means...
0:15:23 > 0:15:27there is an outside! And look at the size of this garden.
0:15:27 > 0:15:29That really is an incredible space.
0:15:29 > 0:15:32It goes right the way up until the fence
0:15:32 > 0:15:34because the garden behind is for the flat upstairs,
0:15:34 > 0:15:36but it really is a great space.
0:15:36 > 0:15:38You've got a little apple blossom tree in the middle,
0:15:38 > 0:15:41so a lovely spacious flat, a nice garden.
0:15:41 > 0:15:43Tick, tick. Thank you very much.
0:15:47 > 0:15:50Gardens like this are a rare commodity in London,
0:15:50 > 0:15:54and this will definitely be a draw to any prospective buyers.
0:15:56 > 0:15:59# And it's getting better... #
0:15:59 > 0:16:03So I think this place just keeps getting better.
0:16:03 > 0:16:06But what will a local estate agent make of it?
0:16:06 > 0:16:08The property is quite a good size.
0:16:08 > 0:16:11It's got two good-size bedrooms,
0:16:11 > 0:16:13the third room used to be kitchen,
0:16:13 > 0:16:16which would be handy if it could be moved back in there because
0:16:16 > 0:16:18the open-plan lounge/kitchen
0:16:18 > 0:16:21wouldn't really suit a three-bedroom property.
0:16:21 > 0:16:24You would make this property into a two-bedroom because
0:16:24 > 0:16:28it will appeal to the general demand for the area.
0:16:28 > 0:16:33At this moment in time there's a lot of city workers moving in the area,
0:16:33 > 0:16:35young families with one child.
0:16:35 > 0:16:38A three-bedroom would be a bit too much for them,
0:16:38 > 0:16:40so you would be restricting your market.
0:16:42 > 0:16:46Hm, now that's good to bear in mind, so what do the numbers tell us?
0:16:46 > 0:16:47Well, as a two-bedroom flat,
0:16:47 > 0:16:51the agent thinks the property could sell for £300,000
0:16:51 > 0:16:54and rent for £1,200 per calendar month.
0:16:54 > 0:16:58However, what if you do decide to keep this as a three-bedder,
0:16:58 > 0:17:00but maybe improved it a little?
0:17:00 > 0:17:03If this property was kept as a three-bedroom flat
0:17:03 > 0:17:09with an improved layout, it will sell for in the region of £340,000.
0:17:09 > 0:17:10And rental?
0:17:10 > 0:17:14As a three-bedroom flat, this property could rent for around
0:17:14 > 0:17:16the £1,500 per calendar month mark.
0:17:16 > 0:17:18Well, as far as flats go,
0:17:18 > 0:17:20I like this one, there's so much going for it.
0:17:20 > 0:17:23You've got off-road parking as well as that lovely garden,
0:17:23 > 0:17:26but there are some layout decisions to make here.
0:17:26 > 0:17:28Should you leave the kitchen in lounge
0:17:28 > 0:17:30or move it back to the third bedroom?
0:17:30 > 0:17:32Who felt it was one to go for?
0:17:32 > 0:17:35Well, let's head to the auction and find out.
0:17:36 > 0:17:39South Norwood flat.
0:17:39 > 0:17:41I don't know. Start at 200.
0:17:41 > 0:17:44I'm not going to go below 200 on this.
0:17:44 > 0:17:46200. 200 on my right.
0:17:46 > 0:17:49200. 201. I'll take 201.
0:17:49 > 0:17:52202. 202. 203.
0:17:53 > 0:17:56204. 205.
0:17:56 > 0:17:59206. 207.
0:17:59 > 0:18:02Well, as I expected, interest was high on the property.
0:18:02 > 0:18:06We return when bids had reached 253,000.
0:18:06 > 0:18:08253.
0:18:08 > 0:18:12254. 255.
0:18:12 > 0:18:17256. 256, standing up. 257.
0:18:17 > 0:18:21First time. 257. Back in. 258.
0:18:21 > 0:18:23Yeah. 259.
0:18:23 > 0:18:27Sir? 258, first time.
0:18:27 > 0:18:30Second time. Third and last time.
0:18:31 > 0:18:33Sold. 258, madam.
0:18:36 > 0:18:41And with the successful bid of 258,000 was Tatiana.
0:18:41 > 0:18:43She bought the flat with her husband Victor.
0:18:43 > 0:18:45This was their first investment property,
0:18:45 > 0:18:49and I was so excited to hear what they had planned for the place.
0:18:51 > 0:18:54- Tatiana, congratulations. - Thank you very much, Lucy.
0:18:54 > 0:18:56Tell me about this flat. Why did you want it
0:18:56 > 0:18:59and who spotted it in the auction catalogue?
0:18:59 > 0:19:02I was the one who was looking through the catalogue
0:19:02 > 0:19:03as soon as it came out,
0:19:03 > 0:19:07so shortlisted quite a few properties to have a look at later.
0:19:07 > 0:19:09Probably around 15.
0:19:09 > 0:19:13Then my husband and I, we went to see the properties,
0:19:13 > 0:19:16made another shortlist of about five
0:19:16 > 0:19:19and eventually when I was in the auction room
0:19:19 > 0:19:22I was only interested in three final ones.
0:19:22 > 0:19:25I love your process - research, research, research.
0:19:25 > 0:19:29That's what I like to hear. So you were really thorough with this?
0:19:29 > 0:19:33Well, hopefully. You can always do more, I suppose,
0:19:33 > 0:19:36but I felt like I done some good research.
0:19:36 > 0:19:38Why have you decided to go into property now?
0:19:38 > 0:19:41We were already thinking about that a couple of years ago.
0:19:41 > 0:19:46Did a little bit of a dry run at the auction, but at that time...
0:19:46 > 0:19:49it didn't quite work out for us.
0:19:49 > 0:19:51We decided to wait it out for a few months.
0:19:51 > 0:19:53But at that time I got pregnant
0:19:53 > 0:19:57so we were focused on something else, something different.
0:19:57 > 0:19:59So now we have our daughter Katie,
0:19:59 > 0:20:02and also recently I was made redundant,
0:20:02 > 0:20:05there was a big redundancy at our company,
0:20:05 > 0:20:10so all the things combined together have led us to a decision that
0:20:10 > 0:20:13now is probably the best time to start something different,
0:20:13 > 0:20:14something better.
0:20:14 > 0:20:17Now you've bought it, is there anything you're worried about?
0:20:17 > 0:20:19Of course, it's our first project!
0:20:19 > 0:20:23Worried about not to make a complete failure of it.
0:20:23 > 0:20:26The concern is only natural
0:20:26 > 0:20:29when tackling your first property development.
0:20:29 > 0:20:32But Tatiana is following her instincts and going for it.
0:20:32 > 0:20:36And it sounds like she and Victor have their heads on their shoulders,
0:20:36 > 0:20:39doing plenty of research before the auction.
0:20:39 > 0:20:42So what are their plans for the place?
0:20:42 > 0:20:45The property was initially a two-bedroom,
0:20:45 > 0:20:48and the previous owner bought it couple of months ago.
0:20:48 > 0:20:51He started some renovation works.
0:20:51 > 0:20:54He moved the kitchen from where it used to be into the reception,
0:20:54 > 0:20:58making it an open-plan reception room
0:20:58 > 0:21:02and put a couple of kitchen units here,
0:21:02 > 0:21:06but what we would like to do is keep it as a three bedroom,
0:21:06 > 0:21:12but remove the kitchen he put into this corner.
0:21:12 > 0:21:15And take everything out and replace it with everything new.
0:21:15 > 0:21:19- So this is your number one plan, kitchen in here?- Yes.
0:21:19 > 0:21:21You are going for the three bedrooms?
0:21:21 > 0:21:24That's the leading plan at the moment.
0:21:24 > 0:21:28So Tatiana and Victor are keeping it as a three-bedroom.
0:21:28 > 0:21:31That will be a tight squeeze in here in my mind,
0:21:31 > 0:21:33so I'll be interested to see how that pans out.
0:21:33 > 0:21:37As for the rest of the property, all the bathrooms to be replaced,
0:21:37 > 0:21:40as well as a thorough course of redecoration throughout.
0:21:40 > 0:21:42So let's now talk numbers.
0:21:42 > 0:21:45What sort of budget have you got for the work here?
0:21:45 > 0:21:49Well, to be perfectly honest, we haven't put together a budget
0:21:49 > 0:21:51in terms of we don't know exactly
0:21:51 > 0:21:55how much everything is going to cost, we only have a figure in mind,
0:21:55 > 0:21:58which we're hoping we're not going to exceed.
0:21:58 > 0:22:02So this figure is between 12 and 15 grand.
0:22:02 > 0:22:06Between 12 and 15,000. New kitchen, new bathroom, carpets,
0:22:06 > 0:22:09wall coverings, plastering, because let me tell you,
0:22:09 > 0:22:13by the time you've taken all this wallpaper off...
0:22:13 > 0:22:15it's a bit of a bumpy ride underneath,
0:22:15 > 0:22:18- so you may need to skim all the walls.- Definitely.
0:22:18 > 0:22:22Hoping that my husband is going to that, the skimming.
0:22:23 > 0:22:26How long do you think it's going to take you before you're ready?
0:22:26 > 0:22:30Because we're not that experienced and also we're going to do some of
0:22:30 > 0:22:33the work ourselves, we are kind of thinking four, five months.
0:22:33 > 0:22:38- OK.- Because we only have weekends and the some of the evenings.
0:22:38 > 0:22:41Also still have to look after our daughter,
0:22:41 > 0:22:42so have to balance all of that.
0:22:42 > 0:22:44What is the grand plan,
0:22:44 > 0:22:47to do this place up and then obviously to sell it on at a profit?
0:22:47 > 0:22:51This is one of the options. I say it's Plan A.
0:22:51 > 0:22:53Plan B is to rent it out,
0:22:53 > 0:22:57so we're really interested to find out what is the ceiling price
0:22:57 > 0:23:00on this street and how much rental we could potentially get
0:23:00 > 0:23:03- and decide based on that.- It's been lovely meeting you today.
0:23:03 > 0:23:06Good luck with this project, and I can't wait to see it.
0:23:06 > 0:23:09- Well done. - Thank you very much, Lucy.
0:23:09 > 0:23:13So the first property development venture for Tatiana,
0:23:13 > 0:23:16so everything's new and a little bit scary for her.
0:23:16 > 0:23:19I really hope it's a straightforward debut project
0:23:19 > 0:23:21and that she can make that kitchen work.
0:23:21 > 0:23:25Join me later in the programme and you can find out how she gets on.
0:23:27 > 0:23:29Coming up, in Stockton-on-Tees
0:23:29 > 0:23:32Paul and Sean look out and get their top pick at auction.
0:23:32 > 0:23:36- But...- It wasn't quite as it seemed, was it, Sean?
0:23:38 > 0:23:40While in South Norwood,
0:23:40 > 0:23:44keeping that budget in check meant getting stuck into some DIY.
0:23:44 > 0:23:46So we have learned quite a lot.
0:23:51 > 0:23:53Let's head back now to Codnor in Derbyshire
0:23:53 > 0:23:57where I visited this two-bedroom semidetached bungalow.
0:23:57 > 0:24:00From the outside, quite a charming little house, but with
0:24:00 > 0:24:05the low guide price of 35,000, I thought things might be bad.
0:24:11 > 0:24:16MUSIC: O Fortuna by Carl Orff
0:24:16 > 0:24:19Nope, it was much worse.
0:24:19 > 0:24:22It is in a complete state.
0:24:22 > 0:24:25I mean, things hanging off the wall.
0:24:25 > 0:24:29Well, apart from the slightly over the top music put in by our editors,
0:24:29 > 0:24:32and the obvious issues, the bungalow was sinking!
0:24:32 > 0:24:36Where would you start? WHY would you start?!
0:24:36 > 0:24:39Well, braving this project were John and Cath who bought this to be
0:24:39 > 0:24:43their home after retiring from fostering for nearly 30 years.
0:24:43 > 0:24:46They paid 60,500 for the property,
0:24:46 > 0:24:51a lot more than the £35,000 guide price, so I was worried.
0:24:51 > 0:24:56I hope you've walked into this project with your eyes open.
0:24:56 > 0:24:58- Half open, really.- How do you mean?
0:24:58 > 0:25:01Bit more work than I thought it would.
0:25:01 > 0:25:03Despite the initial shock,
0:25:03 > 0:25:07John was more than ready to tackle all the structural work required.
0:25:07 > 0:25:10There was to be an open-plan kitchen/living space,
0:25:10 > 0:25:13the downstairs loo was to be moved,
0:25:13 > 0:25:16and they would be creating a master bedroom with en suite in the attic.
0:25:16 > 0:25:18It was a massive undertaking
0:25:18 > 0:25:22and the only thing up for debate seemed to be the budget.
0:25:22 > 0:25:26- My wife had suggested that I'm going to do it for 15,000.- 15?- Yeah.
0:25:26 > 0:25:28If he's doing it all himself.
0:25:28 > 0:25:31- And I think it's going to require a little bit more.- No kidding.
0:25:31 > 0:25:34Well, who was right about that budget?
0:25:35 > 0:25:38It's taken over three years for us to find out,
0:25:38 > 0:25:40but let's have a look first.
0:25:48 > 0:25:52This place is completely unrecognisable.
0:25:52 > 0:25:55John and Cath have gutted the ground-floor of the house
0:25:55 > 0:26:00and opened it up to create this generously sized kitchen/diner.
0:26:00 > 0:26:04They've also moved the bathroom from one end of the house
0:26:04 > 0:26:05to what was the utility room,
0:26:05 > 0:26:09making a good-sized wet room on the ground floor.
0:26:09 > 0:26:13The only two recognisable spaces are the two bedrooms,
0:26:13 > 0:26:15which have, like the rest of the house,
0:26:15 > 0:26:19been completely redone from top to bottom.
0:26:19 > 0:26:21In the second bedroom, they've added patio doors,
0:26:21 > 0:26:25meaning this could also be used as a dining room.
0:26:25 > 0:26:29Upstairs, and the original plan was to turn the attic
0:26:29 > 0:26:31into a master bedroom with en suite,
0:26:31 > 0:26:35but after consultation with an architect, John and Cath decided to
0:26:35 > 0:26:39maximise the space up here by adding a new roof to create two bedrooms.
0:26:39 > 0:26:44One double, one single and a separate bathroom.
0:26:44 > 0:26:47As well as inside, the pair have been busy in the garden too,
0:26:47 > 0:26:50levelling off the previous slope towards the house
0:26:50 > 0:26:53that they found had been causing flooding,
0:26:53 > 0:26:55and building a retaining wall.
0:26:55 > 0:26:58They've also created space for parking.
0:26:58 > 0:27:02So what was a seriously dilapidated two-bedroom bungalow
0:27:02 > 0:27:05is now a massive four-bedroom house.
0:27:05 > 0:27:07This is some undertaking.
0:27:07 > 0:27:09Let's start with the floors.
0:27:09 > 0:27:15Before we thought that the damage on the floor was due to the trees
0:27:15 > 0:27:20because the garden was full of big oak trees, but it wasn't.
0:27:20 > 0:27:23It was due to the slacks that the previous builders had filled
0:27:23 > 0:27:24the floors with.
0:27:24 > 0:27:28The slack Cath is talking about is the in-fill in the foundations -
0:27:28 > 0:27:31scrap materials and rotting wood that had been used in
0:27:31 > 0:27:35the original construction - so all that had to be dug out.
0:27:35 > 0:27:38The house then had to be underpinned to stop it sinking any further,
0:27:38 > 0:27:41and then the floors could be re-laid.
0:27:41 > 0:27:43But while all that sounds scary,
0:27:43 > 0:27:46it turns out it wasn't the worst part for John.
0:27:47 > 0:27:50The toughest challenge for me
0:27:50 > 0:27:53was to set up the front garden with the wall.
0:27:53 > 0:27:59It took no end of grab lorry to get rid of the soil and the dirt
0:27:59 > 0:28:01and the stuff that was in there.
0:28:01 > 0:28:08Obviously huge trees to be taken off and digging it out with the JCB.
0:28:08 > 0:28:11- That was quite a tough job. - It sure sounds like it.
0:28:11 > 0:28:14John and Cath bought this property as a retirement project
0:28:14 > 0:28:17and have done the majority of the work themselves,
0:28:17 > 0:28:19albeit on a part-time basis.
0:28:19 > 0:28:22They've been happy to take their time on the build, working on
0:28:22 > 0:28:26the house for three months each year for the past three years,
0:28:26 > 0:28:28spending the rest of their time touring France
0:28:28 > 0:28:30and Spain in their motorhome.
0:28:30 > 0:28:34They originally intended on living in the house once it was completed,
0:28:34 > 0:28:36but now plan to sell it on
0:28:36 > 0:28:39to fund their continuing travels across Europe.
0:28:39 > 0:28:43The part of the house I'm most pleased with this the upstairs.
0:28:43 > 0:28:45I'm amazed at what John has done
0:28:45 > 0:28:48because until it was almost complete
0:28:48 > 0:28:50I still couldn't visualise how it was going to be
0:28:50 > 0:28:55because the roof had changed shape completely and actually gaining
0:28:55 > 0:28:59two bedrooms and a bathroom, I think was brilliant.
0:28:59 > 0:29:03The house is unrecognisable from the sad bungalow that was here before.
0:29:03 > 0:29:05But I'm guessing both their original estimates
0:29:05 > 0:29:09of what the renovation would cost will be unrecognisable too.
0:29:09 > 0:29:12Was it what Cath said - 15,000?
0:29:12 > 0:29:16Or John's estimate which was 25 to 30,000?
0:29:18 > 0:29:24And the working total has cost us approximately £45,000.
0:29:24 > 0:29:27Yikes! That is quite an overspend.
0:29:27 > 0:29:30But you can see where lots of the money has gone.
0:29:34 > 0:29:37So will they make enough profit for their future travels?
0:29:37 > 0:29:41We asked two local estate agents along to give us their thoughts.
0:29:42 > 0:29:44I think the finish is good for this property.
0:29:44 > 0:29:47I like that they've got a modern feel throughout, but
0:29:47 > 0:29:50they've still kept the traditional features in the property.
0:29:50 > 0:29:52Personally, I like the addition of the two bedrooms upstairs
0:29:52 > 0:29:56and I think it provides a wider target market for the vendors.
0:29:56 > 0:29:58The selling points of this property are the fact that it's got
0:29:58 > 0:30:00the shower room downstairs.
0:30:00 > 0:30:03And also, the open-plan kitchen/diner, that's really
0:30:03 > 0:30:07popular these days, so it means that you've got open-plan family living.
0:30:08 > 0:30:10So a positive response from the agents.
0:30:10 > 0:30:13But this project needs to make a profit.
0:30:13 > 0:30:17John and Cath bought the property for £60,500
0:30:17 > 0:30:20and have spent 45,000 renovating it.
0:30:20 > 0:30:23Bringing their total spend to 105,500.
0:30:23 > 0:30:25So what could it sell for?
0:30:28 > 0:30:33I would value this property on the sales market for £140,000-£150,000.
0:30:33 > 0:30:36I think on the sales market at the moment the vendor should be
0:30:36 > 0:30:40looking to market the property at £145,000.
0:30:40 > 0:30:43- Wow! That's a lot more than we thought.- No, it was not!
0:30:43 > 0:30:44Well, it is for me.
0:30:44 > 0:30:47I always thought it would be that kind of price anyway.
0:30:47 > 0:30:50You did, yeah. You kept saying that, yeah.
0:30:50 > 0:30:52Well, despite that overspend
0:30:52 > 0:30:55it looks like the motorhome will be on the road again,
0:30:55 > 0:30:59with a potential profit of nearly £45,000 in the kitty.
0:30:59 > 0:31:02But what if they decide to rent the house?
0:31:02 > 0:31:07On the rental market we'd look to achieve £550 per calendar month.
0:31:07 > 0:31:11I would advise the owners of this property to advertise
0:31:11 > 0:31:13the property at £575 per calendar month.
0:31:15 > 0:31:20£575 per calendar month would give John and Cath a yield of 6.5%.
0:31:20 > 0:31:23So could they be tempted to rent it out?
0:31:23 > 0:31:27That's a good rental value, but we don't have to rent.
0:31:27 > 0:31:30No. Not going to be for rent.
0:31:30 > 0:31:32So, eager to sell.
0:31:32 > 0:31:35I wonder what's next for John and Cath.
0:31:35 > 0:31:38Going to countries that we haven't been yet.
0:31:38 > 0:31:40I would love to do Route 66.
0:31:40 > 0:31:43That's in the plan for next year, but we need the money.
0:31:49 > 0:31:51Stockton-on-Tees in County Durham
0:31:51 > 0:31:55often picks up awards for Britain in Bloom competitions,
0:31:55 > 0:31:59so will the auction lot I'm here to see today be blooming brilliant?
0:31:59 > 0:32:04# Let's watch the flowers grow... #
0:32:04 > 0:32:08Not far from the centre of Stockton is Oxbridge, and the property
0:32:08 > 0:32:12I'm here to see which is a mixture of commercial and residential use.
0:32:12 > 0:32:16Ground-floor - commercial, and over two floors you've got five bedsits.
0:32:16 > 0:32:22It is at a guide price of £65,000-£80,000.
0:32:22 > 0:32:25The kerb appeal isn't great. The rendering needs some work.
0:32:25 > 0:32:27Let's hope it improves inside.
0:32:28 > 0:32:31OK, what have we got? A lot of space in here.
0:32:31 > 0:32:34Sectioned off into cubicles.
0:32:34 > 0:32:37There's three areas here that have been sectioned off,
0:32:37 > 0:32:39but a lot of floor space.
0:32:39 > 0:32:43Personally, I'd get rid of all this, I'd start again.
0:32:43 > 0:32:45Let's see what else there is.
0:32:47 > 0:32:49Just like developing residential property,
0:32:49 > 0:32:52with commercial it's key to make the space appeal
0:32:52 > 0:32:56to as wide a range of potential clients as possible,
0:32:56 > 0:32:59and opening up this former tattoo parlour would do just that.
0:33:01 > 0:33:05OK, out the back we have got... a cupboard in there.
0:33:05 > 0:33:09Toilet and sink just there, but it's dark and dingy.
0:33:09 > 0:33:11You've got pipe work for services there.
0:33:11 > 0:33:14There's electrics as well and your extractor just there.
0:33:14 > 0:33:16Maybe it was a kitchen, Who knows? But down here you've got
0:33:16 > 0:33:20what looks like a bit of Jackson Pollock art.
0:33:20 > 0:33:22Now, I'm really thinking about taking this up
0:33:22 > 0:33:26and trying to make a few quid. Just joking.
0:33:26 > 0:33:29What you could do with this? Down here you can have a blank canvas,
0:33:29 > 0:33:32you could do whatever you want with this.
0:33:32 > 0:33:34It could potentially be a great commercial unit.
0:33:34 > 0:33:37Get your plans right, you could be on to a winner.
0:33:37 > 0:33:41Well, it turned out that floor wasn't real Jackson Pollock.
0:33:41 > 0:33:43Who'd have thought it?
0:33:43 > 0:33:45But on the bright side, having back room like that with amenities
0:33:45 > 0:33:49in store just makes this premises more appealing.
0:33:50 > 0:33:54But the real jewel in the crown here is that this house has
0:33:54 > 0:33:56five bedsits on two floors,
0:33:56 > 0:33:59which of course means that this comes under
0:33:59 > 0:34:01the houses of multiple occupancy legislation.
0:34:01 > 0:34:04Now, at the moment it doesn't have a licence,
0:34:04 > 0:34:08so if you wanted to keep these five rooms, you'd need to apply.
0:34:08 > 0:34:11And that costs around £1,000.
0:34:11 > 0:34:14According to the catalogue, some of the rooms are tenanted,
0:34:14 > 0:34:16so let's have a look.
0:34:16 > 0:34:18OK, into the first bedsit.
0:34:18 > 0:34:21That, I'm not sure what that is.
0:34:21 > 0:34:24It looks like there may have been a shower there at some stage,
0:34:24 > 0:34:28but I can't see any drainage at all, so not a great start.
0:34:28 > 0:34:31This is small for a bedsit. Is it going to get any better?
0:34:31 > 0:34:33Let's have a look.
0:34:36 > 0:34:40The other two bedsits on this floor are in similar poor condition,
0:34:40 > 0:34:43as is the bedsits' only kitchen.
0:34:43 > 0:34:47And not only that, but so far, I've only seen one toilet.
0:34:47 > 0:34:51I've also yet to see any sign of tenants.
0:34:51 > 0:34:55Now, on one hand that could be good as it means you can set your own
0:34:55 > 0:34:58rental charge, but it will mean you filling the bedsits before you
0:34:58 > 0:35:00start to make any income.
0:35:00 > 0:35:03# Gone, gone, gone
0:35:03 > 0:35:05# Really gone!
0:35:05 > 0:35:07# Gone, gone, gone. #
0:35:07 > 0:35:11Two further bedrooms up here in similar conditions to the ones
0:35:11 > 0:35:15on the first floor. There is a shower room but no toilet.
0:35:15 > 0:35:17That means one toilet for five bedsits.
0:35:17 > 0:35:19Whoever gets this property
0:35:19 > 0:35:21would have two consider putting more toilets in.
0:35:21 > 0:35:26# In the midnight hour she cried, "More, more, more!"
0:35:26 > 0:35:29# More, more, more! #
0:35:29 > 0:35:32One toilet and one shower does satisfy the minimum
0:35:32 > 0:35:34requirements for five people sharing.
0:35:34 > 0:35:37As an HMO landlord, you are only obliged to provide
0:35:37 > 0:35:40two toilets for between six and ten people.
0:35:40 > 0:35:44However, one loo between five people is hardly likely
0:35:44 > 0:35:46to make for the happiest tenants in the world.
0:35:46 > 0:35:49I think it would be a good idea to spend a little extra
0:35:49 > 0:35:52and make this place more appealing to tenants, and that's doable
0:35:52 > 0:35:56if you get it for anywhere near the guide price of £60,000-£80,000.
0:35:56 > 0:36:00Let's get the opinion of an agent from the auction house who sold it.
0:36:00 > 0:36:03I think the commercial unit downstairs is in quite a nice
0:36:03 > 0:36:06prominent visual position.
0:36:06 > 0:36:07It's in a good area,
0:36:07 > 0:36:11so you've got quite a lot of customers that'll see it.
0:36:11 > 0:36:15I think the rest of the property is a good size.
0:36:15 > 0:36:18It needs a little bit of TLC to bring it up to a good spec, though.
0:36:18 > 0:36:20Agreed!
0:36:20 > 0:36:23What does he think needs done and, more importantly,
0:36:23 > 0:36:25how much does he think it will cost to do it all?
0:36:26 > 0:36:30With the ground floor unit, I'd want to basically do away
0:36:30 > 0:36:33with the booths, put it as a blank canvas.
0:36:33 > 0:36:34With the bedsits, I'd see
0:36:34 > 0:36:37if we can accommodate any more facilities into it.
0:36:37 > 0:36:41I would estimate that a ballpark figure to bring the downstairs
0:36:41 > 0:36:46commercial unit and the upstairs apartments up to a rental standard
0:36:46 > 0:36:49would be around £20,000-£25,000.
0:36:49 > 0:36:51That's a sizeable investment,
0:36:51 > 0:36:53but the agent thinks that the business premises
0:36:53 > 0:36:57on the ground floor could rent for around £7,000 a year,
0:36:57 > 0:37:01and each refurbished bedsit could bring in £270 per calendar month.
0:37:03 > 0:37:06Based on the rental incomes that I've estimated,
0:37:06 > 0:37:10I would expect the total income to be around £23,000 per annum.
0:37:12 > 0:37:15This is an interesting lot. You've got the commercial downstairs
0:37:15 > 0:37:17and the residential upstairs.
0:37:17 > 0:37:20Now, on the auction listings, it did say sold as tenanted.
0:37:20 > 0:37:23I can't see any sign of that from what I've seen.
0:37:23 > 0:37:26Anyway, with the combined rental from the commercial
0:37:26 > 0:37:29and those five bedsits upstairs, you could be on to a winner.
0:37:29 > 0:37:32Let's see who agreed when it went to auction.
0:37:32 > 0:37:35Lot number 32, then, in your catalogue.
0:37:35 > 0:37:38Mixed-use commercial and residential property
0:37:38 > 0:37:41situated in the proper popular location of Stockton on Tees.
0:37:41 > 0:37:45Start me off, someone. At 75, am I bid? 70, then.
0:37:45 > 0:37:47Start me off 70 here.
0:37:47 > 0:37:50At 70, I'm bid now. At £70,000.
0:37:50 > 0:37:53And 71. 71 at the back. 72.
0:37:53 > 0:37:5673. 74. 75.
0:37:56 > 0:37:5976. 77. 78.
0:37:59 > 0:38:0279. 80. You're out.
0:38:02 > 0:38:04Here is 79, back left.
0:38:04 > 0:38:08At £79,000, are we all done? Here at 80.
0:38:08 > 0:38:12At £80,000 with you, sir, against you and against you.
0:38:12 > 0:38:15First time at 80. Second time...
0:38:15 > 0:38:17Third and final time, if you're all done...
0:38:17 > 0:38:19Selling away...
0:38:19 > 0:38:21Well done, sir.
0:38:22 > 0:38:25The successful bid of £80,000, at the top of the guide price
0:38:25 > 0:38:28was made by friends Paul and Sean.
0:38:28 > 0:38:32They met through their children, who attend the same school.
0:38:32 > 0:38:34Paul already had a sizeable portfolio
0:38:34 > 0:38:37when he began his business partnership with Sean.
0:38:37 > 0:38:40Together, they now have seven properties they rent out.
0:38:40 > 0:38:42- Paul, Sean, nice to meet you. - Nice to meet you, Dion.
0:38:42 > 0:38:45- Nice to meet you, pal.- Dion. - Congratulations.- Thank you.
0:38:45 > 0:38:47Tell us about that auction. How was it?
0:38:47 > 0:38:49We got the property we were looking at,
0:38:49 > 0:38:52but it wasn't quite as it seemed, was it, Sean?
0:38:52 > 0:38:55We thought the property was coming fully let.
0:38:55 > 0:38:59But when we arrived on Saturday, two days after getting the keys,
0:38:59 > 0:39:01we found it was completely empty.
0:39:01 > 0:39:04It said on the listings that it was fully tenanted,
0:39:04 > 0:39:08earning X amount per month, and we thought, fantastic yield.
0:39:08 > 0:39:10It's sorted. We'll work around that.
0:39:10 > 0:39:13And it wasn't quite that way, was it?
0:39:13 > 0:39:16No, but I mean, it's probably a blessing in disguise, actually.
0:39:16 > 0:39:20- Blank canvas.- We've got a blank canvas and we can work from there.
0:39:20 > 0:39:25We can get the builders in and they're not inhibited by residents.
0:39:25 > 0:39:29# Where do you go, my lovely? #
0:39:31 > 0:39:34While it's a shame the tenants have left,
0:39:34 > 0:39:37it does mean that Paul and Sean can get this place sorted
0:39:37 > 0:39:38just that little quicker.
0:39:38 > 0:39:42Generally, a lot of it's decorative work, believe it or not.
0:39:42 > 0:39:44Once we've cleaned the place out,
0:39:44 > 0:39:48- we're still talking about putting gas central heating in.- New kitchen.
0:39:48 > 0:39:54- New kitchen, extra WC...- There's only one toilet between five rooms,
0:39:54 > 0:39:55which is a bit much.
0:39:55 > 0:39:57And it's on the first floor,
0:39:57 > 0:40:00so we intend to bring another one on to the second floor.
0:40:00 > 0:40:04There's a shower room there but there's no toilet. So we found...
0:40:04 > 0:40:08There's a cupboard next to it, so if we can get the drainage to it,
0:40:08 > 0:40:10we can get a toilet in there.
0:40:10 > 0:40:13I'm glad Paul and Sean are tackling this.
0:40:13 > 0:40:16They plan to create a second shower room by taking some
0:40:16 > 0:40:18space from the kitchen.
0:40:18 > 0:40:20They'll then add a toilet to the top floor shower room
0:40:20 > 0:40:23so they have two toilets, both with showers.
0:40:23 > 0:40:26Much more appropriate for a five-bedsit property.
0:40:26 > 0:40:28But what about the shop?
0:40:28 > 0:40:30I mean, basically, what we think is,
0:40:30 > 0:40:35- if we make the whole front look nice, it'll attract people.- Yeah.
0:40:35 > 0:40:37Don't charge the earth for it,
0:40:37 > 0:40:40give people sensible rent and they'll come.
0:40:41 > 0:40:43Well, I can't argue with that.
0:40:43 > 0:40:46But let's not forget this is a big building,
0:40:46 > 0:40:50so even just doing a cosmetic tidy up will be a big undertaking.
0:40:50 > 0:40:52So who'll be doing the work?
0:40:52 > 0:40:56Have you got a team of people that, you know, are going to help you?
0:40:56 > 0:40:59- Are you going to do some of the work yourself?- We've got a main guy,
0:40:59 > 0:41:03who does all our maintenance, called Roly.
0:41:03 > 0:41:05- Roly!- Yeah, and he has a team.
0:41:05 > 0:41:10- There is a painter, Phil the Brush...- Phil the Brush!- Yeah, yeah.
0:41:10 > 0:41:13- Chris the plumber...- Chris the plumber. Barney.- Barney the plumber.
0:41:13 > 0:41:16- Bassy the Backup. - Bassy the Backup?!
0:41:16 > 0:41:20Just in case Bill the Brush doesn't turn up.
0:41:20 > 0:41:23Roly, Phil the Brush, Bassy the Backup...
0:41:23 > 0:41:26I think I stepped into a Guy Ritchie movie.
0:41:26 > 0:41:29Well, let's hope this property will be changing lock, stock and...
0:41:29 > 0:41:31Well, you know what I mean.
0:41:31 > 0:41:34Anyway, having a gang like this sounds ideal.
0:41:34 > 0:41:38Although Paul and Sean rent seven properties together already,
0:41:38 > 0:41:42this is only the second development project they've taken on together.
0:41:42 > 0:41:45And Diamond Dion would love to know how much dosh
0:41:45 > 0:41:48they have for the boys to do the job.
0:41:48 > 0:41:52- 10-15 grand.- What's the timescale for the work?- Three months?
0:41:52 > 0:41:54I reckon probably just over,
0:41:54 > 0:41:57but we'll tell the builders three months.
0:41:57 > 0:41:58LAUGHTER
0:41:58 > 0:42:03Why not? So three months from what it is now to your finished product?
0:42:03 > 0:42:04We'll be starting work next week.
0:42:04 > 0:42:07Chaps, you've got a great balance and a great property,
0:42:07 > 0:42:09- as well.- Thank you!- I hope it works out for you. Sean, good luck.
0:42:09 > 0:42:11- Thanks, Dion.- Good luck to you.
0:42:11 > 0:42:13- Thanks, Dion.- Good luck. - Cheers, mate.
0:42:13 > 0:42:15Paul and Sean initially disappointed,
0:42:15 > 0:42:18as they thought they were buying a tenanted property.
0:42:18 > 0:42:19That's not the case.
0:42:19 > 0:42:22But with the help of the famous Roly and his team, will they
0:42:22 > 0:42:26get this property turned around in the three-month scale and tenanted?
0:42:26 > 0:42:28You can find out later on in the programme.
0:42:31 > 0:42:34Well, when it comes to taking on a property projects,
0:42:34 > 0:42:38it can take a lot of energy, patience and, most importantly,
0:42:38 > 0:42:42- the ability to bounce back when things go wrong.- Yes.
0:42:42 > 0:42:45We've seen how one of our buyers got on, what about the others?
0:42:45 > 0:42:47Yes, stick around and you will find out.
0:42:49 > 0:42:51Back now to the London Borough of Croydon
0:42:51 > 0:42:54and the increasingly popular South Norwood.
0:42:54 > 0:42:58When I visited this three-bed purpose-built flat,
0:42:58 > 0:43:01it had some great things - off-street parking
0:43:01 > 0:43:05and a much-coveted garden space at the back, which was generous.
0:43:05 > 0:43:09And the inside seemed spacious too.
0:43:09 > 0:43:12Except when you got to the open-plan living-kitchen-room.
0:43:12 > 0:43:14Well, I say kitchen... Er...
0:43:14 > 0:43:17So this kitchen is not really a kitchen,
0:43:17 > 0:43:21it's just a couple of units. I would call it a suggestion of a kitchen.
0:43:21 > 0:43:24And I'm not really sure that it works here,
0:43:24 > 0:43:26but there's a big old giveaway
0:43:26 > 0:43:29of what was through here - serving hatch!
0:43:29 > 0:43:33I think that kitchen probably needs to live in there.
0:43:33 > 0:43:36But really, this wasn't my ideal kitchen,
0:43:36 > 0:43:39and I thought reconfiguration was needed.
0:43:39 > 0:43:44But would the new owner agree or be driven by maximising profits?
0:43:44 > 0:43:45# Money talks
0:43:45 > 0:43:48# Dirty cash, I want you dirty cash, I need you
0:43:48 > 0:43:50# Whoa. #
0:43:50 > 0:43:53Someone willing to face this question head-on is Tatiana,
0:43:53 > 0:43:57who made the final bid of £258,000.
0:43:57 > 0:44:00She and her husband Victor bought the flat as their first
0:44:00 > 0:44:04property venture, so I was keen to find out what her plans
0:44:04 > 0:44:07were for that teeny-weeny kitchen.
0:44:07 > 0:44:11So, what we want to do is keep it as a three-bedroom.
0:44:11 > 0:44:14- So this is your number one plan, kitchen in here?- Yes.
0:44:14 > 0:44:16You are going for the three bedrooms?
0:44:16 > 0:44:19That's the leading plan at the moment.
0:44:20 > 0:44:23So, with a budget of 12,000-15,000,
0:44:23 > 0:44:26and setting themselves a timescale of four to five months,
0:44:26 > 0:44:30would Tatiana and Victor make this three-bedroom property a success?
0:44:30 > 0:44:33We returned six months later to have a peek.
0:44:43 > 0:44:45What a transformation!
0:44:45 > 0:44:49The tired and dated decor has been replaced with fresh,
0:44:49 > 0:44:52bright walls and new neutral-coloured flooring.
0:44:52 > 0:44:55It now looks sleek and contemporary.
0:44:55 > 0:44:59The tiny kitchen has gone too, and is now a larger space
0:44:59 > 0:45:03with additional units and integrated modern appliances.
0:45:03 > 0:45:06The bright purple splashback adds a pop of colour
0:45:06 > 0:45:09and complements the designer decor in this room.
0:45:09 > 0:45:13The bathroom has also been refitted as well as restructured,
0:45:13 > 0:45:16to offer as much space as possible.
0:45:16 > 0:45:18Like the living-room-kitchen,
0:45:18 > 0:45:22it's been finished to an impeccable standard with contemporary fittings.
0:45:22 > 0:45:25The three bedrooms have been overhauled too.
0:45:25 > 0:45:27The old wallpaper has gone, the walls skimmed,
0:45:27 > 0:45:30windows replaced and new carpets fitted,
0:45:30 > 0:45:34breathing new life into these once tired-looking rooms.
0:45:34 > 0:45:38Tatiana and Victor have also installed a new gas central
0:45:38 > 0:45:40heating system with a new boiler,
0:45:40 > 0:45:44to bring this property firmly into the 21st century.
0:45:44 > 0:45:47We wanted to go with a contemporary feel for the property,
0:45:47 > 0:45:52because it's not a period property. It was a purpose-built in the '60s.
0:45:52 > 0:45:57So we wanted to make sure that it looks very modern
0:45:57 > 0:46:01and all of the fixtures and fittings are contemporary,
0:46:01 > 0:46:07nice, shiny. So we hope that we have managed to achieve that.
0:46:07 > 0:46:11Well, I would say so. The place is looking incredible!
0:46:11 > 0:46:15So who's been responsible for all the work that's gone on here?
0:46:15 > 0:46:18Well, the whole project has been managed by my husband, Victor
0:46:18 > 0:46:20and myself.
0:46:20 > 0:46:21So we sourced all of the materials,
0:46:21 > 0:46:25so all the design decisions have been made by ourselves
0:46:25 > 0:46:28and we did quite a lot of work ourselves as well.
0:46:28 > 0:46:31So all the professional work, where professional work was required -
0:46:31 > 0:46:36such as electrics and gas central heating system, bathrooms,
0:46:36 > 0:46:39plumbing etc - they have been done by professionals.
0:46:39 > 0:46:43And the other works have been done by ourselves.
0:46:43 > 0:46:46So we have learned quite a lot.
0:46:46 > 0:46:50As I expected, Tatiana and Victor have been very meticulous
0:46:50 > 0:46:53managing this renovation and, well, it's definitely paid off.
0:46:53 > 0:46:55They've also managed to keep to their original
0:46:55 > 0:46:58timescale of five months.
0:46:58 > 0:47:01But how did their budget fare of £15,000?
0:47:01 > 0:47:06We eventually spent 14,500, which is under 15,000,
0:47:06 > 0:47:08so we're really happy with that.
0:47:08 > 0:47:10With all the work that's gone on here,
0:47:10 > 0:47:13they've done brilliantly to stay under their budget,
0:47:13 > 0:47:18which takes their total spend on this property to £272,500.
0:47:24 > 0:47:28So, will these first-timers have turned a profit?
0:47:28 > 0:47:31We invited along two local estate agents to find out.
0:47:31 > 0:47:34Let's start with the one that saw the flat the last time.
0:47:34 > 0:47:37Having a look around the flat, I think
0:47:37 > 0:47:41it's been done to a really good standard. Luxury finish throughout.
0:47:41 > 0:47:46Good finish to the bathroom. I love the splashback in the kitchen.
0:47:46 > 0:47:49The fact that this property has been kept as a three-bedroom flat
0:47:49 > 0:47:51with the open-plan lounge
0:47:51 > 0:47:55and kitchen, to my surprise it actually works quite well.
0:47:55 > 0:47:57All the rooms are of a good size.
0:47:57 > 0:47:59The open-plan lounge and kitchen aspect
0:47:59 > 0:48:01works really well in this flat.
0:48:01 > 0:48:04Having looked around the flat, I must say, absolutely fantastic.
0:48:04 > 0:48:08This is how flats should be finished. The colours are fantastic.
0:48:08 > 0:48:10I know it looks all white, but there's little hints
0:48:10 > 0:48:15on the woodwork of a slight off-grey colour. It's beautiful.
0:48:15 > 0:48:16It's really subtle, really nice.
0:48:16 > 0:48:19The bathroom is beautifully done, well thought through.
0:48:19 > 0:48:21But also how the lounge and kitchen was done.
0:48:21 > 0:48:23They've done the kitchen nice and compact in the corner
0:48:23 > 0:48:26so it doesn't dominate the open-plan lounge-kitchen.
0:48:26 > 0:48:30Mm! All very positive indeed, but let's get those valuations,
0:48:30 > 0:48:32starting with the rental.
0:48:32 > 0:48:36This flat could achieve around £1,600 per calendar month.
0:48:36 > 0:48:39I believe the flat will rent for around £1,500 a month.
0:48:39 > 0:48:42I think they're very good. They're very good for the area
0:48:42 > 0:48:45and I think they reflect the true value of the property.
0:48:45 > 0:48:49So if we were to go down this road, that would be fine for us, as well.
0:48:49 > 0:48:53Using that top valuation of £1,600,
0:48:53 > 0:48:56that would bring in a yield of 7%.
0:48:56 > 0:49:00However, the plan was to sell, so let's hear what the agents think
0:49:00 > 0:49:05this £272,500 investment is worth now.
0:49:05 > 0:49:10This flat could achieve around £330,000.
0:49:10 > 0:49:14I believe the flat would sell for around £325,000.
0:49:14 > 0:49:15Well, not bad at all.
0:49:15 > 0:49:20As it turns out, Tatiana and Victor have the flat on the market,
0:49:20 > 0:49:24and only after a week they've managed to achieve even more,
0:49:24 > 0:49:27accepting an offer of £350,000,
0:49:27 > 0:49:33making them an incredible £77,500 profit before taxes and fees.
0:49:33 > 0:49:38So do they plan to head back to the auction rooms any time soon?
0:49:38 > 0:49:41I don't think we're going to go to the next auction right now,
0:49:41 > 0:49:44because we want to take some time to rest
0:49:44 > 0:49:47and have time together as a family over Christmas etc.
0:49:47 > 0:49:51But next year, we're thinking next year is a good time for us
0:49:51 > 0:49:53to start thinking about it again.
0:49:57 > 0:50:00Back now to the market town of Stockton on Tees,
0:50:00 > 0:50:03where I visited this three-storey property
0:50:03 > 0:50:05with a mix of commercial and residential space.
0:50:05 > 0:50:09And it had a guide price of £65,000-£80,000.
0:50:10 > 0:50:14From the street, it was obvious the exterior was going to need
0:50:14 > 0:50:17some attention, but inside, the shop was generously sized,
0:50:17 > 0:50:21although, in my opinion, would need those booths ripped out
0:50:21 > 0:50:25and generally freshened up to appeal to any potential tenant.
0:50:25 > 0:50:26# Something better change! #
0:50:28 > 0:50:31Up on the first floor, and to be honest
0:50:31 > 0:50:33things were looking pretty grim.
0:50:33 > 0:50:36Three very tired-looking bedsits,
0:50:36 > 0:50:39a sad kitchen and a tiny toilet.
0:50:39 > 0:50:42And then there was the top floor.
0:50:42 > 0:50:45Two further bedrooms up here in similar condition
0:50:45 > 0:50:47to the ones on the first floor.
0:50:47 > 0:50:49There is a shower room, but no toilet.
0:50:49 > 0:50:51That means one toilet for five bedsits.
0:50:51 > 0:50:53Whoever gets this property
0:50:53 > 0:50:56would have to consider putting more toilets in.
0:50:56 > 0:50:58# I said something better change! #
0:50:59 > 0:51:02The property was purchased for 80 grand by friends
0:51:02 > 0:51:04and business partners, Paul and Sean.
0:51:04 > 0:51:07But things didn't quite pan out as they expected.
0:51:07 > 0:51:10It said on the listings that it was fully tenanted,
0:51:10 > 0:51:14earning X amount per month. And we thought, fantastic yield, you know.
0:51:14 > 0:51:18But when we arrived on Saturday, two days after getting the keys,
0:51:18 > 0:51:20we found it was completely empty.
0:51:20 > 0:51:23Still, every cloud and all that.
0:51:23 > 0:51:26The tenants moving out meant they could get started.
0:51:26 > 0:51:30With project manager Roly and his madly named team,
0:51:30 > 0:51:32they planned to open up the first floor toilet to accommodate
0:51:32 > 0:51:34a shower, install a new kitchen,
0:51:34 > 0:51:37add a much-needed loo in the top floor bathroom
0:51:37 > 0:51:39as well as fitting gas central heating
0:51:39 > 0:51:42and a good deal of decoration throughout.
0:51:42 > 0:51:46And all for a budget of between £10,000 and £50,000.
0:51:46 > 0:51:48And a timescale of around three months.
0:51:48 > 0:51:52So will Paul and Sean be quids in in their second property
0:51:52 > 0:51:54development together?
0:51:55 > 0:51:58We returned over nine months later to have a look.
0:52:06 > 0:52:08On the first floor,
0:52:08 > 0:52:11the three bedrooms have been completely overhauled.
0:52:11 > 0:52:16The new carpets, fresh paintwork and gas central heating
0:52:16 > 0:52:19now make these rooms excellent bedsit accommodation.
0:52:19 > 0:52:22Along the hallway, the bathroom has been opened up,
0:52:22 > 0:52:26stealing space from the kitchen to fit a much-needed shower.
0:52:26 > 0:52:29It's a small space, but perfectly formed.
0:52:30 > 0:52:34Next door, the kitchen has been refitted with new units
0:52:34 > 0:52:36and appliances, making it a modern,
0:52:36 > 0:52:40functional communal space for the five bedsits.
0:52:43 > 0:52:46On the top floor, the two bedrooms have been redone to the same
0:52:46 > 0:52:50excellent standard as downstairs.
0:52:50 > 0:52:53They've also revamped the bathroom up here to include a toilet,
0:52:53 > 0:52:56something that was oddly missing from this room before.
0:52:56 > 0:53:00Paul and Sean have actually let out two bedsits already
0:53:00 > 0:53:02and expect more tenants soon.
0:53:02 > 0:53:05So the residential side of the property is looking good.
0:53:05 > 0:53:08But what about the commercial?
0:53:09 > 0:53:11Yes, the pair have let this out too.
0:53:11 > 0:53:13It's been taken over by new tenants
0:53:13 > 0:53:16and turned into a takeaway restaurant.
0:53:16 > 0:53:18It all looks so easy,
0:53:18 > 0:53:21but I'm guessing there's been a fair amount of work taking place here
0:53:21 > 0:53:23since we last saw the pair.
0:53:23 > 0:53:27Well, every room, as you can see, has been stripped back to basics.
0:53:27 > 0:53:30It's been plastered where needed, electrics have been made good,
0:53:30 > 0:53:34new lighting - LED low-energy lighting -
0:53:34 > 0:53:38blinds, decent carpets, as you can see.
0:53:38 > 0:53:41I mean, before, it was horrible, wasn't it?
0:53:41 > 0:53:44- Yeah, it was terrible.- You know, now it's like a five-star hotel now!
0:53:44 > 0:53:45LAUGHTER
0:53:45 > 0:53:48Steady on! Not quite.
0:53:48 > 0:53:50I can't see the swimming pool or Jacuzzi anywhere.
0:53:50 > 0:53:53There's no doubt, though, that Roly
0:53:53 > 0:53:55and his team have turned in a nice job.
0:53:55 > 0:53:58They've been responsible for all the renovation work here.
0:53:58 > 0:54:02They also completed within the three and a half month timescale.
0:54:03 > 0:54:07Paul and Sean decided to leave the property vacant for over
0:54:07 > 0:54:10three months while a government grant for external cladding
0:54:10 > 0:54:11was being processed.
0:54:11 > 0:54:15This proved to be a lengthier process than first imagined
0:54:15 > 0:54:18and is still ongoing, with work unlikely to begin
0:54:18 > 0:54:20for another four to five months.
0:54:20 > 0:54:23So they've started renting out the rooms with a warning to tenants
0:54:23 > 0:54:27that the exterior building works are on the horizon.
0:54:27 > 0:54:30What about that budget of 10-15 grand?
0:54:30 > 0:54:33I think we've gone...
0:54:33 > 0:54:36about 17,500 in total.
0:54:36 > 0:54:42But that's due to the fact that we've left it empty for three
0:54:42 > 0:54:46or four months, so we've had bills to pay. That's including everything.
0:54:46 > 0:54:51- It's including solicitors. So about 17,500.- 17,500, yeah.
0:54:51 > 0:54:53I don't think we've done a bad job for that.
0:54:53 > 0:54:59That brings their total spend on the property to £97,500.
0:55:02 > 0:55:06So let's find out what two local property experts make of it.
0:55:06 > 0:55:09Will the lads' second property renovation together
0:55:09 > 0:55:10prove to be a fruitful one?
0:55:10 > 0:55:12My first impressions of the property,
0:55:12 > 0:55:16having had a look around previously, is they've done a very smart job.
0:55:16 > 0:55:19I think the finish is quite impressive.
0:55:19 > 0:55:23I think it's quite sensible for them to put a bit more into it,
0:55:23 > 0:55:25because then tenants will stay longer.
0:55:25 > 0:55:29My first impression of the property is that it's very neat and tidy.
0:55:29 > 0:55:33Looking at the layout, the second bathroom is a big advantage,
0:55:33 > 0:55:38especially if there are five people in the property.
0:55:39 > 0:55:42So they agree that the place is looking good,
0:55:42 > 0:55:48but can Paul and Sean make a profit on their £97,500 investment?
0:55:48 > 0:55:49Let's start at the bottom
0:55:49 > 0:55:52and get the rental figures for the commercial space.
0:55:52 > 0:55:57I would be expecting it to rent for approximately £500 per month.
0:55:57 > 0:56:00The commercial unit rent, I think would be
0:56:00 > 0:56:02around £500 per calendar month.
0:56:02 > 0:56:06Paul and Sean have let out the space already
0:56:06 > 0:56:09and for a figure of £450 per calendar month,
0:56:09 > 0:56:12rising to £550 over the course of a five-year lease.
0:56:12 > 0:56:16So those valuations are pretty much in line with that,
0:56:16 > 0:56:19but what about the rental on the bedsits?
0:56:19 > 0:56:21I think the bedsits on their own would be expected
0:56:21 > 0:56:25to achieve around £70-£75 per week.
0:56:25 > 0:56:28The rental price of the bedsits
0:56:28 > 0:56:32would be around £65-£75 per week per room.
0:56:32 > 0:56:34I think that's good.
0:56:34 > 0:56:37We're trying to concentrate on the correct type of tenant
0:56:37 > 0:56:40- rather than the rental values. - Mm-hm.- And...
0:56:40 > 0:56:43- I think people will be happy living here.- Yeah.
0:56:43 > 0:56:45That's good to hear.
0:56:45 > 0:56:47At £75 per week,
0:56:47 > 0:56:50on the basis that all the rooms are occupied throughout the year,
0:56:50 > 0:56:53and including the rental income from the commercial property,
0:56:53 > 0:56:58that would be a whopping yield of between 23% and 26%.
0:56:58 > 0:57:01So they can definitely afford to be picky.
0:57:01 > 0:57:04Now, let's get those sales valuations to see
0:57:04 > 0:57:07if these guys would be interested in selling.
0:57:07 > 0:57:11I would expect investors to be interested in buying it
0:57:11 > 0:57:15between £130,000 and £140,000.
0:57:15 > 0:57:17If the property was to be sold,
0:57:17 > 0:57:22we would expect something around £130,000-£140,000.
0:57:22 > 0:57:24- It's reasonable. - It's in the right ballpark.
0:57:24 > 0:57:27Got no intention of selling it, so... Yeah.
0:57:28 > 0:57:33So, not even a potential pre-tax profit of nearly 43 grand
0:57:33 > 0:57:35is tempting them to sell.
0:57:35 > 0:57:37They intend to stick to renting the rooms.
0:57:37 > 0:57:40But since filming with us they decided to make
0:57:40 > 0:57:43one of the first floor bedsits a room with a lounge.
0:57:43 > 0:57:46So they'll actually make less income with four bedsits,
0:57:46 > 0:57:49but they're more interested in getting good tenants.
0:57:53 > 0:57:56Well, we might not have renovated any castles today,
0:57:56 > 0:57:59but it's just amazing what people take on.
0:57:59 > 0:58:01Yes, and if you don't fancy tackling a project yourself,
0:58:01 > 0:58:04there's an easier way to enjoy property developing.
0:58:04 > 0:58:06Yeah, just join us here next time on Homes Under The Hammer.
0:58:06 > 0:58:08- Goodbye.- Goodbye.- Goodbye.