0:00:02 > 0:00:04Hello, and welcome to the show.
0:00:04 > 0:00:06The property market is an ever-changing thing.
0:00:06 > 0:00:08There can be a very different picture,
0:00:08 > 0:00:11depending on which part of the country you're in.
0:00:11 > 0:00:13One constant is the property auctions.
0:00:13 > 0:00:17There are thousands of properties sold under the hammer every year.
0:00:17 > 0:00:20And to help us with all the action is former footballer Dion Dublin.
0:00:20 > 0:00:22Great to meet you. Great to see you. Great to see you.
0:00:22 > 0:00:26I've always been into sport, but property has sort of ran parallel.
0:00:26 > 0:00:28What I am enjoying is meeting the developers
0:00:28 > 0:00:30here on Homes Under The Hammer.
0:00:55 > 0:00:58All sorts of properties are sold under the hammer, so if you're
0:00:58 > 0:01:01thinking of investing, why not pop down to your local property auction?
0:01:01 > 0:01:05Yes, but don't get carried away. Do your homework before you bid.
0:01:05 > 0:01:08Here's what we found for you on today's show.
0:01:09 > 0:01:13There's a dazzling surprise in this Stoke end-of-terrace.
0:01:13 > 0:01:18Whoa! Bright white kitchen! Sunglasses on!
0:01:19 > 0:01:23In London, it's time to let the light into this two-bed flat.
0:01:23 > 0:01:28I do like the space it offers. The windows in there are fantastic.
0:01:29 > 0:01:32And is there a little treasure to be unearthed in Manchester?
0:01:32 > 0:01:37You can find those little gems that you can turn around very quickly.
0:01:37 > 0:01:39This is definitely one of them.
0:01:39 > 0:01:42All of these properties have been sold at auction
0:01:42 > 0:01:44and we'll find out who bought them
0:01:44 > 0:01:47and what they paid when they went under the hammer.
0:01:47 > 0:01:48- HE BANGS GAVEL - 12 and sold!
0:01:51 > 0:01:53# I think it's going to be all right, all right
0:01:55 > 0:01:59# Everything will always be all right when you go shopping #
0:02:01 > 0:02:05Today, I'm in Stoke-on-Trent. Hanley, to be precise.
0:02:05 > 0:02:08As any local will tell you, Hanley is the place to go shopping,
0:02:08 > 0:02:11or have a good night out in Stoke.
0:02:11 > 0:02:15In fact, they've coined a saying to mean just that - "Oop Hanley, duck."
0:02:16 > 0:02:20# Go shopping, go shopping... #
0:02:22 > 0:02:24So, what's on offer in Hanley today?
0:02:24 > 0:02:28Well, an end-terrace, corner property, so that's good news.
0:02:28 > 0:02:32As is the price, £35,000 plus.
0:02:34 > 0:02:36Got to be worth... exploring further.
0:02:40 > 0:02:41From the outside,
0:02:41 > 0:02:46this seems like a fairly typical Victorian redbrick terraced house.
0:02:47 > 0:02:49There are obvious signs of wear and tear,
0:02:49 > 0:02:53like this window frame - ugly but not a real problem.
0:02:53 > 0:02:57Well, seems pretty expansive, the moment you walk through the door.
0:02:57 > 0:02:59Stairs up to the bedrooms there.
0:02:59 > 0:03:02A sort of sitting room area on that side.
0:03:02 > 0:03:08And then through here, it almost has a feeling of what,
0:03:08 > 0:03:10I guess, it might have been in the past - a corner shop.
0:03:10 > 0:03:13Because it's bigger than you anticipate.
0:03:13 > 0:03:15This room here, look at it.
0:03:15 > 0:03:17Some lovely old stained glass in the windows.
0:03:17 > 0:03:21I wonder if you could keep that. Probably not. The windows need replacing.
0:03:21 > 0:03:24You know, this is a good size sitting room in here.
0:03:24 > 0:03:26And then, what have we got here?
0:03:26 > 0:03:30It almost looks like it is a bit of a single-storey extension.
0:03:30 > 0:03:35Housing a... Whoa! Bright white kitchen! Look at that!
0:03:35 > 0:03:38Sunglasses on. But not a bad space.
0:03:39 > 0:03:43Although, it looks to me, it's going to need a bit of work.
0:03:43 > 0:03:44It's obviously got lots of damp.
0:03:44 > 0:03:49And somebody has tried the most amazing job of updating
0:03:49 > 0:03:53the work surfaces by painting them. Lovely(!) Yeah.
0:03:53 > 0:03:56Rip out and start again. But, in terms of a start,
0:03:56 > 0:03:59and the amount of space you've got, brilliant.
0:04:03 > 0:04:05I am liking this place already.
0:04:05 > 0:04:08It's really spacious and has some quirky features.
0:04:08 > 0:04:10I'm off upstairs for a sit down.
0:04:14 > 0:04:16BACKGROUND MUSIC SLOWS AND DISTORTS
0:04:17 > 0:04:19You know when you do painting,
0:04:19 > 0:04:23and you go to a lot of trouble with all that masking tape and
0:04:23 > 0:04:27careful about the edges and covering things with dust sheets and stuff?
0:04:29 > 0:04:34Clearly, whoever did the painting in this bathroom didn't adopt
0:04:34 > 0:04:36the same approach.
0:04:36 > 0:04:41It looks like a seagull's got in here and done its worst.
0:04:41 > 0:04:45More seriously, though, whenever I see fresh paint like this,
0:04:45 > 0:04:48I wonder what's it covering up.
0:04:49 > 0:04:51Oh, dear.
0:04:51 > 0:04:56Looks like the bathroom will end up in the skip along with the kitchen.
0:04:56 > 0:04:59Well, the good thing about corner terraced properties is that,
0:04:59 > 0:05:04obviously, you have got an extra wall which you can have windows in.
0:05:04 > 0:05:07As a result, they are often light and airy.
0:05:07 > 0:05:09And that's exactly the case here.
0:05:09 > 0:05:11Look at this, a really good size bedroom.
0:05:11 > 0:05:14It's only got two bedrooms but really nice size.
0:05:14 > 0:05:15You're going to have to
0:05:15 > 0:05:19sort of see through some of the clutter that's still here.
0:05:19 > 0:05:24But do that, and what you see is a really decent little property.
0:05:26 > 0:05:30So, great potential inside but let's see what the outside has to offer.
0:05:32 > 0:05:35Well, not only have you got this rather interesting extension
0:05:35 > 0:05:39to the side of the property, but also quite an extensive
0:05:39 > 0:05:44- I was going to say garden - but it's just utility space.
0:05:44 > 0:05:46Also a garage.
0:05:46 > 0:05:50So, suddenly, this property is actually quite expansive.
0:05:50 > 0:05:53And just as a completely random thought,
0:05:53 > 0:05:59I wonder if you could possibly think about building a house here.
0:05:59 > 0:06:01So this could be a building plot?
0:06:01 > 0:06:02CASH REGISTER RINGS
0:06:02 > 0:06:05That could bring you quite a lot of cash.
0:06:05 > 0:06:07MUSIC: Money by Pink Floyd
0:06:07 > 0:06:10Of course, that would be a decision for the local planners.
0:06:10 > 0:06:13It's worth thinking about, but park those thoughts
0:06:13 > 0:06:15while we ask a local property expert
0:06:15 > 0:06:19what he thinks of this house that came guided at £35,000 plus
0:06:19 > 0:06:22and the area it's in.
0:06:23 > 0:06:26The area is very convenient for the town centre.
0:06:26 > 0:06:30Literally, a couple of minutes walk away.
0:06:30 > 0:06:34Quite a lot of the area will be buy-to-let investor properties.
0:06:34 > 0:06:37Not too much owner-occupied around here,
0:06:37 > 0:06:39but they are very good to let out.
0:06:41 > 0:06:44So, that's very good news for any prospective buyer,
0:06:44 > 0:06:46but what are his impressions of the house?
0:06:48 > 0:06:52First impressions of the property, quite a lot of work required.
0:06:52 > 0:06:56Whoever purchases it, they are going to have a full hit, really.
0:06:56 > 0:07:01Kitchens, bathrooms, rewire, double glazing is required.
0:07:01 > 0:07:05Heating's required. An extensive course of work required, really.
0:07:07 > 0:07:10Once renovated, our expert reckoned the house
0:07:10 > 0:07:13could achieve around £80,000 if it was put up for sale.
0:07:13 > 0:07:17And as much as £450 per calendar month if rented.
0:07:18 > 0:07:21Keeping in mind that guide price of £35,000
0:07:21 > 0:07:25and someone could make a tidy little profit on this project.
0:07:27 > 0:07:29Well, yes, there's work to be done,
0:07:29 > 0:07:32but I think this property has a lot to offer.
0:07:32 > 0:07:35Especially around that guide price.
0:07:35 > 0:07:37Let's see who agreed when it went under the hammer.
0:07:43 > 0:07:45It's a corner terraced house.
0:07:45 > 0:07:49Two reception rooms, two bedrooms, bathroom upstairs, garage.
0:07:49 > 0:07:52What's this? 30 to start here?
0:07:52 > 0:07:5430 bid. Thank you.
0:07:54 > 0:08:01At £30,000, 31, took it there. At 31. 32. 33. 34. 35.
0:08:04 > 0:08:0936. 37. 38. 39. 40.
0:08:10 > 0:08:13Shaking his head. 40 right in the middle. At £40,000.
0:08:13 > 0:08:1741 anywhere else? If not, I'm selling at...
0:08:17 > 0:08:19Another bidder.
0:08:19 > 0:08:21You're not all together, are you? No.
0:08:21 > 0:08:2641. 42. 43. 44.
0:08:26 > 0:08:2745.
0:08:28 > 0:08:3146? 46. 46.
0:08:31 > 0:08:3447, sir? No.
0:08:34 > 0:08:37The bid's at 46 in the middle. No mistakes.
0:08:37 > 0:08:39At £46,000, then, all done?
0:08:41 > 0:08:44New bidder. 47.
0:08:44 > 0:08:4848? 48. 49? 49. 50.
0:08:51 > 0:08:5550 and a half. 51? 51.
0:08:55 > 0:08:57Half? Two? Half?
0:08:59 > 0:09:02No. At 52 and a half. Standing back there.
0:09:02 > 0:09:0452,500. All done now.
0:09:04 > 0:09:0753, anywhere else? If not, 52,500 once.
0:09:07 > 0:09:0952,500, back in. 53.
0:09:11 > 0:09:16Shaking his head. So it's with you still. 53. Another 500. If not,
0:09:16 > 0:09:2052 once, 53 twice, third and final time. At £53,000...
0:09:23 > 0:09:25You bought it, sir. Well done.
0:09:28 > 0:09:31No wonder he's punching the air after that exhausting contest.
0:09:31 > 0:09:36He is Guibert, a restaurateur who also dabbles in property.
0:09:36 > 0:09:38I met up with him, his adoptive mother Pat
0:09:38 > 0:09:41and daughter Hope, to find out what his plans are.
0:09:43 > 0:09:47- Pat, Guibert, lovely to meet you both.- Nice to meet you too.
0:09:47 > 0:09:52- Congratulations.- Thank you. - Interesting property.- You think so?
0:09:52 > 0:09:55- Yeah, I do.- And with all your experience?- Yes!- Oh, great.
0:09:55 > 0:09:58I like it. I think it's really good. Loads of potential.
0:09:58 > 0:10:00Tell me why you wanted to buy it.
0:10:01 > 0:10:06It's in town centre. It's got a garage with it. So, parking.
0:10:06 > 0:10:09Erm, and it came to a reasonable price.
0:10:09 > 0:10:14- And prices are going up in this part of the area.- Right.
0:10:14 > 0:10:18- Tell me about you two, then. - We were in Buckinghamshire.
0:10:18 > 0:10:20And we had a restaurant in Beaconsfield.
0:10:20 > 0:10:24- From Beaconsfield, back to Stoke-on-Trent.- I moved away
0:10:24 > 0:10:28- from Beaconsfield to here, last year.- Did you?- Yeah.
0:10:28 > 0:10:33- What attracted you back to Stoke? - Guibert and his family.- Right, OK.
0:10:33 > 0:10:36And how have you found the transition back to Stoke?
0:10:36 > 0:10:40Actually, very well. I was worried, but it has gone very well indeed.
0:10:40 > 0:10:44- And are you going to be involved in this project?- Yes, financially,
0:10:44 > 0:10:46and, I hope, physically.
0:10:46 > 0:10:50- And what do you do when you are not doing property?- I run a restaurant.
0:10:50 > 0:10:54- That's my first profession.- Right. Are you a chef? Or you run it?
0:10:54 > 0:10:57No, I just run it and tell other people what to do.
0:10:57 > 0:11:00So, what's the plan? Why have you bought it?
0:11:00 > 0:11:03- Have you bought it to sell it?- No. - No.- To rent it.- Right.
0:11:03 > 0:11:07To completely gut the inside and start again.
0:11:07 > 0:11:10And then rental property around here is in demand
0:11:10 > 0:11:13because the university, for one thing, and also
0:11:13 > 0:11:16I think he needs something to do during the day.
0:11:17 > 0:11:21- Not enough in the restaurant.- Right.
0:11:21 > 0:11:24- So, Mum's stepping in and cracking the whip.- Yes.
0:11:27 > 0:11:31Well, it looks like Guibert has his work cut out for him on this project.
0:11:32 > 0:11:35I don't know where he's going to find the energy to develop
0:11:35 > 0:11:38this place and run his restaurant.
0:11:38 > 0:11:39But mother knows best.
0:11:41 > 0:11:45# Always be kind to your mother. #
0:11:45 > 0:11:48So, talk me through exactly what you're going to do to sort it out.
0:11:48 > 0:11:51Well, strip it to the bare bones.
0:11:51 > 0:11:56Because it's pointless doing a patch here, a patch there. Make it modern.
0:11:56 > 0:12:00And, erm, something durable lasts, simple, easy to maintain.
0:12:00 > 0:12:04Right. One radical thought I had was knocking the garage down
0:12:04 > 0:12:08- and maybe there is enough space... - Extension?- Well, no, no, no.
0:12:08 > 0:12:11Maybe there's enough space for a little building plot there?
0:12:11 > 0:12:14You see, Mum, you've twigged on to that, haven't you?
0:12:14 > 0:12:16- Oh, of course.- Yeah!
0:12:16 > 0:12:20- So, what's the budget for the work? - I think 20,000.
0:12:20 > 0:12:24- But I don't know about... - I'd like to do it within 15.
0:12:24 > 0:12:26It's quite generous. 15's doable, I would say.
0:12:26 > 0:12:30One of the nice things about running a restaurant, you get to meet a lot of nice people.
0:12:30 > 0:12:33When you look after them, when it's your time, they look after you.
0:12:33 > 0:12:35OK, so you're going to call in some friends.
0:12:35 > 0:12:40- You've no idea what you will get for a curry.- Mate's rates!
0:12:40 > 0:12:44- We'll call it curry rates. - And what about the timescale?
0:12:45 > 0:12:49- I'm looking about three months. Maximum.- I double it.
0:12:49 > 0:12:52You double it? You see, you're very practical, aren't you? Well...
0:12:52 > 0:12:55If you work for architects for 35 years, and you've had
0:12:55 > 0:13:00builders ringing up every day saying, "Oh, next week, next week."
0:13:00 > 0:13:03- Well, congratulations.- Thank you very much.- Good luck to you both.
0:13:03 > 0:13:05- Lovely to meet you. - Thank you very much.
0:13:05 > 0:13:08Look forward to seeing how it turns out.
0:13:08 > 0:13:11Well, Pat and Guibert seem to make a great team
0:13:11 > 0:13:13and I think they have got a lovely property here.
0:13:13 > 0:13:17Lots of work to be done, lots of curry rates to be called in.
0:13:17 > 0:13:21How will they get on? You can find out later.
0:13:26 > 0:13:29This is Thornton Heath in the London Borough of Croydon.
0:13:29 > 0:13:32It's a couple of miles from Croydon town centre
0:13:32 > 0:13:35and just 24 minutes by train to central London.
0:13:36 > 0:13:39Once an area known for its clock making and bell foundry,
0:13:39 > 0:13:43its tranquil surroundings suddenly got my property senses tingling.
0:13:45 > 0:13:47A 15-minute brisk walk from the train station,
0:13:47 > 0:13:53and you're on this attractive street lined with nice period houses.
0:13:53 > 0:13:55Now, the property I'm here to see is this.
0:13:55 > 0:14:00It's a three-bedroom garden flat, which had a guide price of £100,000.
0:14:00 > 0:14:02I'm going to take a look inside.
0:14:02 > 0:14:06Well, someone's done a clear-out already, by the looks of things.
0:14:06 > 0:14:08Let's hope that means less work to do inside.
0:14:10 > 0:14:15Oh! Well, straightaway, I can see this is a serious renovation job.
0:14:15 > 0:14:18Look, they've got peeling wallpaper everywhere.
0:14:18 > 0:14:20A bit of money needs spending here.
0:14:20 > 0:14:24Although, I do like the space it offers. Lovely big rooms.
0:14:24 > 0:14:28The windows are fantastic. Nice bit of cornicing, as well.
0:14:28 > 0:14:31Second room here, I would say this is another bedroom.
0:14:31 > 0:14:36It's fantastic knowing that these flats were built like this.
0:14:36 > 0:14:39They're purpose-built with period features still in mind.
0:14:39 > 0:14:42You know, so much nicer than a pinched conversion.
0:14:42 > 0:14:45Offers a lot of space. Again, you've got a lovely big window over there.
0:14:45 > 0:14:47So far, so good. I really like it.
0:14:49 > 0:14:53So, at the back of the property you've got a little kid's room in there.
0:14:53 > 0:14:54And this is the sitting room.
0:14:54 > 0:14:57It's nice and quiet, actually. And not a bad space.
0:14:57 > 0:15:00But if you don't want three bedrooms,
0:15:00 > 0:15:03I suppose you could always take this wall out
0:15:03 > 0:15:07and create a very nice big space for a family, perhaps.
0:15:07 > 0:15:10Although, I think by not having the third bedroom, that might
0:15:10 > 0:15:11damage the value of the property.
0:15:11 > 0:15:15And, of course, for renters, they do prefer more rooms.
0:15:15 > 0:15:18We've got the kitchen right at the back. Yes, it's in a state.
0:15:18 > 0:15:21You would need to completely think about redoing this,
0:15:21 > 0:15:22changing all the units.
0:15:22 > 0:15:24But, disappointingly, there's the bathroom.
0:15:24 > 0:15:29Look, just tacked on at the side here. Doesn't really work for me.
0:15:29 > 0:15:33I think I would create an independent access round here,
0:15:33 > 0:15:37put a door through here. Knock a big hole through here and block this up.
0:15:37 > 0:15:40So you could enter the bathroom through from this room.
0:15:40 > 0:15:43And over here, we've got a strange sort of lean-to.
0:15:49 > 0:15:51This is all rather strange.
0:15:51 > 0:15:55This is nothing other really than just a storage space, a bike store.
0:15:55 > 0:16:00But it's almost plonked right in the middle of the garden.
0:16:00 > 0:16:02I'm just thinking, if you took it away,
0:16:02 > 0:16:05you would have so much more space.
0:16:05 > 0:16:07It doesn't really work as it is at the moment.
0:16:10 > 0:16:13And at the other end is this door
0:16:13 > 0:16:16leading out to just a redundant yard.
0:16:16 > 0:16:19It is not being used for anything, it doesn't serve a purpose at all.
0:16:19 > 0:16:21Apply for planning permission
0:16:21 > 0:16:25and just put something a little more useful than that in its place.
0:16:25 > 0:16:28# You'd better go now
0:16:28 > 0:16:30# Go now
0:16:30 > 0:16:32# Go now
0:16:32 > 0:16:34# Go now. #
0:16:34 > 0:16:38This lean-to desperately needs replacing with a preferably
0:16:38 > 0:16:41bigger and better and more practical extension.
0:16:41 > 0:16:45You could then extend the kitchen into it and, if it was extended
0:16:45 > 0:16:48down the side as well, you could open up the dining room area too.
0:16:48 > 0:16:51But of course, in order to do all of that you need to chat to
0:16:51 > 0:16:53the freeholder to get permission.
0:16:53 > 0:16:56And while you're at it, you might as well discuss
0:16:56 > 0:17:01an extension of the lease, which currently has only 71 years left
0:17:01 > 0:17:04to run, which will significantly affect its resale value.
0:17:07 > 0:17:11But what does a local estate agent make of this three-bedroom
0:17:11 > 0:17:14garden flat that came guided at £100,000?
0:17:15 > 0:17:18This is a good size three-bedroom maisonette.
0:17:18 > 0:17:19Ground floor, which is good.
0:17:19 > 0:17:22Direct access to the garden. It needs a lot of work.
0:17:22 > 0:17:26It needs completely uplifting and there is the scope to extend
0:17:26 > 0:17:29the kitchen sideways and make it just that much more spacious.
0:17:29 > 0:17:34Undoubtedly, there's a lot of practical changes that can be carried out.
0:17:34 > 0:17:38'But what about that relatively short lease? Is that worth extending?'
0:17:39 > 0:17:43Normally, extending the lease is a good idea and on a three-bedroom
0:17:43 > 0:17:47property like this it could be anything from 15,000 to 20,000.
0:17:47 > 0:17:50But that would definitely add saleability in the future
0:17:50 > 0:17:53and it would add that extra value to the property as well.
0:17:53 > 0:17:56'Mortgage companies can get nervous
0:17:56 > 0:17:59'when a lease has less than 70 years to run
0:17:59 > 0:18:02'so undoubtedly it would be worth that extra spend
0:18:02 > 0:18:06'to make your investment viable for the resale market.
0:18:06 > 0:18:09'But with what was a £100,000 plus guide price
0:18:09 > 0:18:12'and a potential 20 grand spend,
0:18:12 > 0:18:15'on getting that lease extended on top of a full refurbishment,
0:18:15 > 0:18:19'would you see any return at all on your investment?'
0:18:19 > 0:18:24In today's marketplace, the property with an extended lease and once fully
0:18:24 > 0:18:27renovated, the property could be marketed
0:18:27 > 0:18:29at around £195,000 to £200,000.
0:18:30 > 0:18:35'Potentially, this could yield quite a decent return on the resale market.
0:18:35 > 0:18:38'But how would it fare as a rental property?'
0:18:38 > 0:18:41On the rental market, we would market this property
0:18:41 > 0:18:43at around £1,000 per calendar month.
0:18:44 > 0:18:48'It sounds like this property could be a potentially lucrative
0:18:48 > 0:18:51'venture and lots of options, with extending the kitchen
0:18:51 > 0:18:53'and extending the lease too.
0:18:53 > 0:18:56'But whatever you decide, one thing is for sure,
0:18:56 > 0:18:58'it does need a total renovation.
0:18:58 > 0:19:02'So let's find out who bought it when it went under the hammer.'
0:19:08 > 0:19:10Lot 96.
0:19:10 > 0:19:14A four-room garden flat in need of updating.
0:19:14 > 0:19:18Who would like to give me a start on this? Are you ready? 100, I've got.
0:19:18 > 0:19:20Thank you. £100,000.
0:19:20 > 0:19:25101. Thank you. 101. 102. 103. 103. 104.
0:19:26 > 0:19:28104. 105.
0:19:28 > 0:19:30105. 106.
0:19:31 > 0:19:35107. 107 I've got 107. 108.
0:19:35 > 0:19:36109.
0:19:36 > 0:19:39'This turned out to be a popular lot
0:19:39 > 0:19:43'and we rejoin the bidding at £140,000.'
0:19:43 > 0:19:46140. Thank you. 141.
0:19:46 > 0:19:48142.
0:19:48 > 0:19:50142. 143.
0:19:50 > 0:19:55143. 144. 144?
0:19:55 > 0:19:57Yes, 144. 145.
0:19:58 > 0:20:00146.
0:20:01 > 0:20:03146. 147.
0:20:03 > 0:20:05148.
0:20:05 > 0:20:06149.
0:20:08 > 0:20:10150 at the back.
0:20:10 > 0:20:13150. OK. 151?
0:20:13 > 0:20:16150 for the first, 150 for the second,
0:20:16 > 0:20:18150 for the third and final time.
0:20:18 > 0:20:22Are we all done? Sold for 150 at the back of the room. Well done.
0:20:22 > 0:20:26'For £50,000 above the guide price the winning bidder was Aubrey,
0:20:26 > 0:20:30'who was bidding on behalf of his friend Teresa.
0:20:30 > 0:20:34'I met them both at the flat to find out their plans for it.'
0:20:37 > 0:20:40- Congratulations. Now, whose is the flat?- The flat is mine.
0:20:40 > 0:20:43- But you were the one bidding on auction day.- That's right.
0:20:43 > 0:20:46- Did you see it before the auction? - I didn't. Aubrey did.
0:20:46 > 0:20:48- So you trusted in your friend here? - I did.
0:20:48 > 0:20:50He's done this type of work before
0:20:50 > 0:20:53and I knew if he said it was going to be a good project, I knew it would be.
0:20:53 > 0:20:56- When you saw this for the first time, where you really happy?- I was.
0:20:56 > 0:21:01I walked in. I know there is work to be done here but I could see through that.
0:21:01 > 0:21:03It's the high ceilings and the size of the rooms
0:21:03 > 0:21:06and the fact it is a three-bedroom and what can be done with the flat.
0:21:06 > 0:21:08I just love it.
0:21:09 > 0:21:13'And it's not just the flat she loves, it's the location too.
0:21:13 > 0:21:17'Having just had her job relocated from Crawley where she previously
0:21:17 > 0:21:22'lived to Croydon, this move will cut her journey time from over an hour to just ten minutes.
0:21:22 > 0:21:24'That's fantastic!
0:21:27 > 0:21:32So Aubrey, what are you going to do to really turn this place around?
0:21:32 > 0:21:34Basically, just revamp it.
0:21:34 > 0:21:37Plaster walls that need to be plastered
0:21:37 > 0:21:39and basically make the kitchen bigger.
0:21:39 > 0:21:42Let's talk about the kitchen because it could be a fabulous kitchen.
0:21:42 > 0:21:46But the lean-to is not fabulous. You need to put a permanent structure there.
0:21:46 > 0:21:49But it does sort of sit in the middle of the garden, doesn't it?
0:21:49 > 0:21:51The way the lean-to is set up,
0:21:51 > 0:21:54the kitchen can be put in there quite easily.
0:21:54 > 0:21:58And the little patio in the front, you can use that like a little dining area.
0:21:58 > 0:22:01You don't really want to go into the grass.
0:22:01 > 0:22:04Obviously, the garden is very small but you can't expect a big thing.
0:22:04 > 0:22:06You have got a big flat. Small garden.
0:22:06 > 0:22:08Nice and cute for a small person.
0:22:08 > 0:22:11For a small person, nice and cute. Perfect!
0:22:11 > 0:22:15So you have got lots of space here. You've got three bedrooms.
0:22:15 > 0:22:18It really is a little bonus you've got the third bedroom.
0:22:18 > 0:22:20But imagine if you took away that wall,
0:22:20 > 0:22:23because it is just a partition wall, you could have what I think
0:22:23 > 0:22:28it originally was, a very big, wonderful open plan reception room.
0:22:28 > 0:22:32I am going to ask Aubrey to make that little bedroom a little bit bigger
0:22:32 > 0:22:34and pull it out a bit more into the dining room area
0:22:34 > 0:22:38because he's going to knock that wall into the kitchen and that will open up all that space.
0:22:38 > 0:22:41So I will have more space with the kitchen and diner and I won't
0:22:41 > 0:22:45miss that little bit that's going to make that little bedroom bigger.
0:22:45 > 0:22:47So you almost kind of have three double bedrooms.
0:22:47 > 0:22:51It really is a cracking flat. You did well, Aubrey.
0:22:51 > 0:22:53- He did well, the boy. - He certainly did.
0:22:53 > 0:22:55So what sort of money are you looking at spending here?
0:22:55 > 0:22:58- I'd say between 10,000 and 15,000. - Are you happy with that?
0:22:58 > 0:23:00- Yes, I am. - Do you think that is a doable fee?
0:23:00 > 0:23:04- You've got to change all the windows, you've got a bathroom, a kitchen.- Yes.
0:23:04 > 0:23:07But knowing the right people, you can actually do it a lot cheaper.
0:23:07 > 0:23:09So how do you know the right people?
0:23:09 > 0:23:13In my industry, I do plumbing and heating, so I meet different trades.
0:23:13 > 0:23:16It's time for me to call my favours in.
0:23:17 > 0:23:19# Call me
0:23:21 > 0:23:23# Call me
0:23:25 > 0:23:28# Call me. #
0:23:28 > 0:23:33'Aubrey is hoping that by calling in favours he will be able to turn the flat around in just a month.
0:23:33 > 0:23:36'But of course it isn't just the fabric of the flat that needs
0:23:36 > 0:23:39'sorting out to maximise its value.'
0:23:39 > 0:23:40What about the 71-year lease?
0:23:40 > 0:23:43I'm going to reapply for a new lease.
0:23:43 > 0:23:45- But how much money is that going to cost you?- I don't know.
0:23:45 > 0:23:48I think it's between 6,000 and 10,000.
0:23:48 > 0:23:51So you've got to add that on to the costs of the property
0:23:51 > 0:23:53and then the work that you've got to do.
0:23:53 > 0:23:56- Yes.- Hence why we are only spending between 10 and 15.
0:23:56 > 0:23:59What are you most looking forward to?
0:23:59 > 0:24:03- Just cracking on. Getting the hammer out.- Going for it!- Going for it.
0:24:03 > 0:24:05- What time do you finish work? - Three o'clock.
0:24:05 > 0:24:07So where are you going to be at 3:30 every day?
0:24:07 > 0:24:10- 3:20, I will be here every day. - Is she going to be driving you mad?
0:24:10 > 0:24:13- How is that going to work?- I will be here a lot earlier than that!
0:24:13 > 0:24:16- And you'll be leaving by 3:20! - We're going to do shift work!
0:24:16 > 0:24:19Guys, I can't wait to see the flat when it's finished.
0:24:19 > 0:24:22Congratulations and I hope it all turns out well.
0:24:23 > 0:24:27Well, I think everyone needs to be mates with the tradesman with loads of friends!
0:24:27 > 0:24:30Teresa has struck lucky with Aubrey.
0:24:30 > 0:24:33I am really intrigued, though, to see what happens
0:24:33 > 0:24:36and if they manage it for 10,000-15,000.
0:24:36 > 0:24:39You can find out how they get on later in the programme.
0:24:40 > 0:24:43Coming up, whoever owns this little flat in Warrington,
0:24:43 > 0:24:46there is no chance they will miss the boat.
0:24:46 > 0:24:50That over there is the Manchester Ship Canal. It is still used today.
0:24:52 > 0:24:55'And for Teresa, has her ship finally come sailing in?'
0:24:55 > 0:24:58I love it. It's nice to come home from work and have my own front door
0:24:58 > 0:25:00and I can have friends around when I want to.
0:25:06 > 0:25:11'It's back now to Hanley in Stoke-on-Trent and this Victorian redbrick corner house
0:25:11 > 0:25:17'that was bought at auction for £53,000 by Guibert and his adoptive mother, Pat.
0:25:17 > 0:25:21'Guibert was born in Stoke, but lived for ten years in Beaconsfield
0:25:21 > 0:25:24'in Buckinghamshire where he bought several properties
0:25:24 > 0:25:25'and opened a restaurant.
0:25:25 > 0:25:28'And now he has returned to Stoke
0:25:28 > 0:25:31'he has the perfect recipe for combining the two interests.'
0:25:31 > 0:25:34The nice thing about running a restaurant,
0:25:34 > 0:25:36you get to meet a lot of nice people.
0:25:36 > 0:25:39When you look after them, when it is your time, they'll look after you.
0:25:39 > 0:25:41OK. So you're going to call in some friends?
0:25:41 > 0:25:45- You have no idea what you'll get for curry!- Mate's rates.
0:25:45 > 0:25:47We will call it curry rates!
0:25:47 > 0:25:50'You could say he is CURRYING favour with his clients!
0:25:50 > 0:25:54'And while the interior of the house was an acquired taste,
0:25:54 > 0:25:57'Guibert and Pat were going to spice up this end terrace
0:25:57 > 0:26:00'and renovate the property in three to six months
0:26:00 > 0:26:03'and on a budget of £15,000 to £20,000.
0:26:03 > 0:26:06'When we returned just over nine months later,
0:26:06 > 0:26:10'a new front door and new windows had been installed.
0:26:10 > 0:26:12'But had the interior hit the spot?'
0:26:15 > 0:26:16'Well, they certainly did.
0:26:16 > 0:26:18'From top to bottom, wall to wall,
0:26:18 > 0:26:22'the house had been replastered, rewired and replumbed.
0:26:24 > 0:26:28'With new doors, flooring and windows and with the neutral tones
0:26:28 > 0:26:32'of the floor and door giving the reception rooms oomph and character.
0:26:34 > 0:26:37'And while the old kitchen may have been blinding at first,
0:26:37 > 0:26:41'the new units and worktops are definitely a sight for sore eyes.
0:26:44 > 0:26:47'Guibert and Pat have come again with his daughter
0:26:47 > 0:26:51'and her granddaughter, Hope, and they have certainly given
0:26:51 > 0:26:54'this house some for the future, especially in the kitchen.'
0:26:54 > 0:26:58This is a very simple, basic kitchen.
0:26:58 > 0:27:02Straightforward, neat, clean, practical.
0:27:02 > 0:27:05And basically it didn't take that long.
0:27:05 > 0:27:08The reason being because there isn't any corners.
0:27:08 > 0:27:13It is a straight line and that was quite easy.
0:27:13 > 0:27:15'Glad to hear it, Guibert.
0:27:15 > 0:27:19'The decor of the two bedrooms follow the same format as downstairs.
0:27:19 > 0:27:23'Again, the wood effect makes these rooms warm and inviting.
0:27:25 > 0:27:30'And do you remember the bathroom that made a splash for all the wrong reasons?
0:27:30 > 0:27:33'Well, that has been remedied with a new suite and tiling.
0:27:33 > 0:27:38'But getting it to this much improved state meant having a big clear out.'
0:27:38 > 0:27:41It had been empty for seven years.
0:27:41 > 0:27:45The accumulation of rubbish left behind plus the devastation
0:27:45 > 0:27:48we caused taking all the windows out, the doors,
0:27:48 > 0:27:51the plaster off the walls, the ceilings down.
0:27:51 > 0:27:54So skips were outside almost permanently.
0:27:54 > 0:27:57'Clearing out the garden also helped fill those skips.
0:27:57 > 0:28:00'And as for the suggestion of turning the garage into a building plot,
0:28:00 > 0:28:05'Guibert did approach the planning office but they felt any application would be unsuccessful
0:28:05 > 0:28:09'and any development here would not be in keeping with the area.
0:28:09 > 0:28:12'So Guibert has dropped the idea.
0:28:12 > 0:28:17'But as for the main renovation, well, that went smoothly and thanks to some helping hands.'
0:28:19 > 0:28:23A couple of my friends did help me out with some plastering and painting.
0:28:23 > 0:28:25A friend of mine did the electrical work
0:28:25 > 0:28:29for virtually half the cost of what it should have been.
0:28:29 > 0:28:33In return, I treated his family in the restaurant. So it does work.
0:28:33 > 0:28:36It is one of the advantages of having a restaurant.
0:28:36 > 0:28:38You get to know a lot of nice people.
0:28:41 > 0:28:44'Despite returning just over nine months later,
0:28:44 > 0:28:47'all the work here was done in a total of just nine weeks.
0:28:47 > 0:28:51'This delay, though, in getting the house fixed up was down to
0:28:51 > 0:28:54'Guibert having to deal with the passing away of his father.'
0:28:55 > 0:28:59Unfortunately, I spent six months beside my father.
0:29:01 > 0:29:04He had cancer and he passed away.
0:29:04 > 0:29:08So I had to take my father to Bangladesh for the burial.
0:29:08 > 0:29:12Being an Asian, it is a cultural thing
0:29:12 > 0:29:15that you believe your father held your hand in your first step.
0:29:16 > 0:29:19And when he is old, you carry his last step.
0:29:19 > 0:29:21It is the circle of life.
0:29:23 > 0:29:28I really am so proud because he had a lot of worry and sadness
0:29:28 > 0:29:31and all this had to go on hold and then you come back
0:29:31 > 0:29:34and a little bit of the enthusiasm has gone from the auction.
0:29:34 > 0:29:38But now, you get into it and it's amazing.
0:29:38 > 0:29:41I think he has done an incredible job.
0:29:41 > 0:29:43'With the help of friends,
0:29:43 > 0:29:47'Guibert and Pat were able to get the work done for £12,000,
0:29:47 > 0:29:50'well within their original budget of 15,000 to 20,000.
0:29:51 > 0:29:54'Add that to the purchase price of £53,000,
0:29:54 > 0:29:58'and their total outlay here is £65,000.
0:29:58 > 0:30:01'So what is the next step for the house?'
0:30:01 > 0:30:05We haven't decided fully which one we're going to do.
0:30:05 > 0:30:10If we get the right money we're looking for, we would sell.
0:30:11 > 0:30:15If the value is slightly less, then we would wait
0:30:15 > 0:30:17and see what the outcome is.
0:30:19 > 0:30:22Well, maybe two local estate agents can help Guibert and Pat decide
0:30:22 > 0:30:25which might be the best way of making
0:30:25 > 0:30:29their £65,000 investment work.
0:30:29 > 0:30:30I'm very impressed with the property.
0:30:30 > 0:30:34It is of an excellent size, being on the corner.
0:30:34 > 0:30:37And the developer has done an excellent job in updating it.
0:30:37 > 0:30:40The main selling points of the property are the size,
0:30:40 > 0:30:43the presentation - whoever occupies it can move straight in -
0:30:43 > 0:30:47and also the location, with the proximity to the city centre.
0:30:48 > 0:30:50Having a look around the property,
0:30:50 > 0:30:52it has been done to a reasonable standard.
0:30:52 > 0:30:55Obviously, new kitchen, new bathroom. It's neutral and fresh
0:30:55 > 0:30:59and pretty much ready to move straight into.
0:30:59 > 0:31:03So, bearing in mind their spend of £65,000, what could
0:31:03 > 0:31:05Guibert and Pat achieve if they sell the house?
0:31:05 > 0:31:10I would anticipate a resale value in the region of £75,000.
0:31:10 > 0:31:16I would anticipate the resale value to be in the region of £75,000.
0:31:16 > 0:31:20The valuation is lower, we were expecting it to be at least 80-plus.
0:31:20 > 0:31:22Erm... So, that is
0:31:22 > 0:31:26a bit of a shock because we will probably put it on the market for 80.
0:31:26 > 0:31:2985, for an offer of 80.
0:31:29 > 0:31:31That is what we would do.
0:31:31 > 0:31:35If they were to sell it for £80,000, then the pair could get a pre-tax
0:31:35 > 0:31:41profit of around £15,000, but will the rental returns appeal to them?
0:31:41 > 0:31:43I would anticipate a rental income
0:31:43 > 0:31:46in the region of £400 per calendar month.
0:31:46 > 0:31:47If we were to let it out,
0:31:47 > 0:31:51I would be looking in the region of £425 per calendar month.
0:31:51 > 0:31:54Yeah, it's not far off. We...
0:31:54 > 0:32:00If we were to rent it out, we would be looking at at least 450.
0:32:00 > 0:32:04If the pair get that rental return of £450 per calendar month,
0:32:04 > 0:32:08then they could get a healthy annual yield of just over 8%.
0:32:10 > 0:32:14Despite the possible resale values not meeting up to their expectations,
0:32:14 > 0:32:17the pair are still aiming to try their luck reselling, and it
0:32:17 > 0:32:22certainly hasn't put them off buying again at auction in the future.
0:32:22 > 0:32:26Although we haven't made as much as I thought I would,
0:32:26 > 0:32:28erm...but we certainly haven't made a loss,
0:32:28 > 0:32:31so it's not bad for a start.
0:32:31 > 0:32:34Yeah, we would certainly look at other properties.
0:32:38 > 0:32:40DION: And it is time for me to look at another property now,
0:32:40 > 0:32:44here in the village of Latchford, near Warrington.
0:32:44 > 0:32:47And not only does it have good road and rail links, you can
0:32:47 > 0:32:49even travel here by boat.
0:32:49 > 0:32:52The village lies between the River Mersey
0:32:52 > 0:32:55and the Manchester Ship Canal, and the local locks are still in use.
0:32:56 > 0:33:00Just a stone's throw away from the Latchford Railway Viaduct is
0:33:00 > 0:33:02the property I'm here to see.
0:33:02 > 0:33:06It is a two-bed flat in a relatively modern development.
0:33:06 > 0:33:09It is at a guide price of £70,000.
0:33:09 > 0:33:11Let's have a look.
0:33:13 > 0:33:17This block was built in 2007 and, with plenty of parking,
0:33:17 > 0:33:22communal gardens, a security entrance and set-back from the road,
0:33:22 > 0:33:23it all looks pretty good to me.
0:33:25 > 0:33:29One downside is that there is no lift, but our flat is only on
0:33:29 > 0:33:33the first floor, so you don't have to be an ex-footballer to tackle those.
0:33:35 > 0:33:37Straight into the hallway.
0:33:37 > 0:33:41There is a nice big room here
0:33:41 > 0:33:42with quite a large window there,
0:33:42 > 0:33:46bringing in lots of light in. Maybe change the carpets,
0:33:46 > 0:33:48they look a little bit tired.
0:33:48 > 0:33:51In here you have a bit of cupboard space, which is
0:33:51 > 0:33:53quite rare in a flat this size.
0:33:53 > 0:33:56It is always struggling for cupboard space.
0:33:56 > 0:34:01Bedroom too. Again the carpet is not great in that room.
0:34:01 > 0:34:03Spacious bathroom, big enough.
0:34:03 > 0:34:07And then into the main room here, which is the lounge-kitchen area.
0:34:07 > 0:34:11And from what I can see so far,
0:34:11 > 0:34:12doesn't look like there needs
0:34:12 > 0:34:16to be a lot done in here. The kitchen looks relatively new.
0:34:16 > 0:34:18The hob looks nice and clean.
0:34:18 > 0:34:22Carpets are not great in here either, so carpet throughout
0:34:22 > 0:34:25and a bit of paint as well on the walls, just to freshen it up.
0:34:25 > 0:34:28But it just goes to show if you do a bit of research, have a look
0:34:28 > 0:34:32around, you can find those little gems that you can turn around
0:34:32 > 0:34:35very quickly. This is definitely one of them.
0:34:37 > 0:34:41Yes, all this is really suffering from is a bit of wear and tear.
0:34:41 > 0:34:45And with a little bit of love and attention, it'll be as good as new.
0:34:46 > 0:34:49# Make me shine
0:34:50 > 0:34:54# Make me shine... #
0:34:56 > 0:34:58Once you've made it shiny and bright, you can step back
0:34:58 > 0:35:00and admire the view.
0:35:00 > 0:35:03It is not very often you can look out of your flat
0:35:03 > 0:35:07and get a bit of the Northwest's industrial heritage,
0:35:07 > 0:35:11and that over there is the Manchester Ship Canal.
0:35:11 > 0:35:14And every now and again you might be lucky enough to spot a ship
0:35:14 > 0:35:18going up or down that, because it is still used today.
0:35:18 > 0:35:20# Ship ahoy, ship ahoy
0:35:20 > 0:35:23# Ship ahoy, ship ahoy... #
0:35:25 > 0:35:28The 36 miles on the Manchester Ship Canal links Manchester to
0:35:28 > 0:35:32the Irish Sea and is regularly used by over 8,000
0:35:32 > 0:35:34container ships each year.
0:35:35 > 0:35:37Well, the view may come free,
0:35:37 > 0:35:41but one thing that doesn't with this flat is that communal service charge.
0:35:41 > 0:35:45Having lived in an apartment just like this one during my playing days,
0:35:45 > 0:35:48I did have to pay my communal charges.
0:35:48 > 0:35:51It wasn't that much, but it was well worth it,
0:35:51 > 0:35:55so if you do take on something like this, factor it into your budget.
0:35:55 > 0:35:59And the service charge currently for this flat is £600 per year,
0:35:59 > 0:36:03with an additional ground rent fee of £250 per annum.
0:36:03 > 0:36:05In all, they're not huge sums
0:36:05 > 0:36:08but it does add up to another £70 per month in costs.
0:36:12 > 0:36:15What does a local estate agent think about this flat, which comes
0:36:15 > 0:36:19guided at £70,000 plus?
0:36:19 > 0:36:21It is an attractive looking block.
0:36:21 > 0:36:24Pleasant location, close to the Ship Canal.
0:36:26 > 0:36:29Communal areas are a little bit tired, a little bit dated,
0:36:29 > 0:36:32but overall, a very strong first impression.
0:36:32 > 0:36:35Well, that is all fine and dandy, but minimal changes can mean
0:36:35 > 0:36:39there's only a small uplift in value that can be achieved,
0:36:39 > 0:36:43so is that the case for this flat that was guided at £70,000?
0:36:43 > 0:36:48With some improvement, I'd expect a price in the region of £90,000-£95,000.
0:36:50 > 0:36:54OK, so perhaps there is a decent profit to be had here.
0:36:54 > 0:36:56And what about its rental potential?
0:36:57 > 0:37:01I'd expect a rental price in the region of £550-£575
0:37:01 > 0:37:03per calendar month.
0:37:06 > 0:37:08There's not a lot that needs doing to this flat,
0:37:08 > 0:37:12maybe some new carpet, lick of paint, but I think it's ready to go.
0:37:12 > 0:37:15Let's see who was lucky enough to spot it when it went under the hammer.
0:37:15 > 0:37:18And with the lot coming up near the end of the sale,
0:37:18 > 0:37:21the auction room was fairly quiet.
0:37:21 > 0:37:25A chance then for someone to pick up a bargain.
0:37:25 > 0:37:27Lot 32.
0:37:27 > 0:37:29This is the apartment. Comprises an entrance hall,
0:37:29 > 0:37:32lounge-diner, kitchen, two bedrooms, bathroom, gas,
0:37:32 > 0:37:35central heating, double glazing fitted. 70 is your guide.
0:37:35 > 0:37:38Start me at 60, let's get it going.
0:37:38 > 0:37:4050, then. Need a bid. 50 I've got.
0:37:40 > 0:37:42At £50,000. In twos, maybe.
0:37:42 > 0:37:4652, anyone? 52 here. 54.
0:37:46 > 0:37:4856. 58. 60.
0:37:48 > 0:37:5160 I've got. 62. Thank you, sir.
0:37:51 > 0:37:5462 I'm bid. 64.
0:37:54 > 0:37:5666.
0:37:56 > 0:37:5866 I'm bid.
0:37:58 > 0:37:5968.
0:38:00 > 0:38:0268 I'm bid. 70.
0:38:02 > 0:38:0570 I'm bid. 72.
0:38:05 > 0:38:0871, I'll take it. 72, sir.
0:38:08 > 0:38:1173. 74.
0:38:11 > 0:38:1374, you are back in. 75.
0:38:13 > 0:38:1674.5, I'll take it. 75.
0:38:17 > 0:38:20Half. No. Here at 75.
0:38:20 > 0:38:22At £75,000, are we done?
0:38:22 > 0:38:26On the aisle, then. At £75,000, for the first time,
0:38:26 > 0:38:28and the second time, are you sure?
0:38:28 > 0:38:31Selling at, then, at £75,000.
0:38:31 > 0:38:33You, sir, well done.
0:38:33 > 0:38:36And so for £75,000,
0:38:36 > 0:38:39the successful bidder for the two- bed, first-floor flat in Latchford
0:38:39 > 0:38:41was Bob.
0:38:42 > 0:38:44Bob has a house ten minutes from the flat
0:38:44 > 0:38:47but spends a lot of the year in Italy.
0:38:47 > 0:38:50So I was intrigued to know what he had planned for it.
0:38:51 > 0:38:54- Bob, nice to meet you, sir. - Nice to meet you.- Congratulations.
0:38:54 > 0:38:57- Thank you.- Tell us about what the auction was like for you.
0:38:57 > 0:39:00Well, a little bit nervous when I first went.
0:39:00 > 0:39:03It is a new experience, didn't know what expect.
0:39:03 > 0:39:05I asked the chap there what they would do.
0:39:05 > 0:39:09I was concerned of making a strange movement and making a bid.
0:39:09 > 0:39:13- And they take the money off you. - Scratch my nose, or whatever, and I have just bid five grand extra.
0:39:13 > 0:39:17But I knew I wasn't going to go more than 75. And it just happened.
0:39:17 > 0:39:20- You did well, didn't you, fell on your feet there.- But it is just what I wanted.
0:39:20 > 0:39:24I wanted something I could, basically, in and out, really.
0:39:24 > 0:39:27- And, er...- Judging by what I've seen, it is one of them, isn't it?
0:39:27 > 0:39:30- It is just a quick hoover around... - It is, really.
0:39:30 > 0:39:32A lick of paint.
0:39:32 > 0:39:36You know, new carpets and that's the end of it. And then we'll get a tenant in.
0:39:36 > 0:39:39- And that's what your plan is, to rent it out?- Straightaway? Yes.
0:39:39 > 0:39:43Because basically, I work for myself, I have done for a number of years.
0:39:43 > 0:39:46- I've never been in a position where I've had spare cash.- OK.
0:39:46 > 0:39:49I've either been getting divorced, paying those off,
0:39:49 > 0:39:52or I did go bankrupt in the early '90s
0:39:52 > 0:39:54- and I had to recover from that. - Yeah, yeah.
0:39:54 > 0:39:57- And my business has always needed the money.- OK.
0:39:57 > 0:40:00And this is the first time ever I've had some spare cash.
0:40:00 > 0:40:02Bob used to work as a supplier in a builders merchants
0:40:02 > 0:40:05but has never actually got his hands dirty.
0:40:05 > 0:40:08He did get involved in a new-build project with a business partner
0:40:08 > 0:40:12and kept three of those properties. He also now has others.
0:40:12 > 0:40:16Myself and a friend of mine built five apartments in Littleborough,
0:40:16 > 0:40:20which is north of Rochdale. A nice little area, similar size to these.
0:40:20 > 0:40:22And we built those new.
0:40:22 > 0:40:25So what I basically done is I've remortgaged those on a buy-to-let
0:40:25 > 0:40:27and then bought this for cash.
0:40:27 > 0:40:31And then I bought another house in Lymm, just up the road here,
0:40:31 > 0:40:34and rented out the house I was in before, the flat,
0:40:34 > 0:40:36so this will be the fifth and we are about to get a sixth.
0:40:36 > 0:40:39This is just your bit of a pastime or you've got a bit of cash?
0:40:39 > 0:40:43- Pension, pension. Something to leave to the children.- What's your job?
0:40:43 > 0:40:47What I do is I...I live in Italy, been there 20 years.
0:40:47 > 0:40:49I can tell by the way you dress, there is
0:40:49 > 0:40:52- a bit of Italian there, isn't there?- That's right.
0:40:52 > 0:40:55And I went there with no job, actually.
0:40:55 > 0:40:58I had lost my business, and I went there to...
0:40:58 > 0:41:02just as to holiday home, just to...
0:41:02 > 0:41:04While I was there, I was out of work.
0:41:04 > 0:41:07I started looking around markets and various things and, actually,
0:41:07 > 0:41:10eventually started to buy designer clothing
0:41:10 > 0:41:12from warehouses, etc.
0:41:12 > 0:41:16And since then we've built up quite a good little business,
0:41:16 > 0:41:18supplying all independents in the UK
0:41:18 > 0:41:20and abroad with...
0:41:20 > 0:41:24top brands of clothing that they can't get.
0:41:26 > 0:41:28# They seek him here
0:41:28 > 0:41:31# They seek him there
0:41:31 > 0:41:33# His clothes are loud
0:41:33 > 0:41:37# But never square
0:41:37 > 0:41:39# It will make or break him
0:41:39 > 0:41:42# So he's got to buy the best
0:41:42 > 0:41:44# Cos he's a dedicated
0:41:44 > 0:41:47# Follower of fashion...#
0:41:47 > 0:41:49And having been running his business for the last 20 years,
0:41:49 > 0:41:51Bob is keen to build up a pension pot
0:41:51 > 0:41:55and has decided that investing in UK properties would be the best option.
0:41:55 > 0:41:59And so he hopes to build up a portfolio of around ten rental properties.
0:41:59 > 0:42:01# He's a dedicated
0:42:01 > 0:42:03# Follower of fashion... #
0:42:05 > 0:42:09- Not a lot to be done in here.- No, not at all. That's what I like about it.
0:42:09 > 0:42:12In and out. Carpets next week and we'll want someone in.
0:42:12 > 0:42:15What are you going to do? How much are you going to spend on it?
0:42:15 > 0:42:18- A couple of grand.- A couple of thousand pounds?- That's all. - Should be enough?- Yes.
0:42:18 > 0:42:21And what's that money going to pay for?
0:42:21 > 0:42:23- The carpets and a lick of paint. - And that's it?- Yes.
0:42:23 > 0:42:26- And how long will it take you? - About a week or two, I suppose.
0:42:26 > 0:42:27THEY LAUGH
0:42:27 > 0:42:30I'm no expert, Dion, but I think a couple of weeks.
0:42:30 > 0:42:33Are you going to get the experts in to come and do it in and out,
0:42:33 > 0:42:36- sharpish?- Yes, I've got a pal who is a decorator. He's just done my home.
0:42:36 > 0:42:39- This is just a quick fix, isn't it? - Yes.
0:42:39 > 0:42:42- Keep it simple.- Exactly.- Yeah.
0:42:42 > 0:42:45How do you manage? If you live in Italy and all your property is here,
0:42:45 > 0:42:48- who keeps an eye on it for you? - Well, I do it through agents.
0:42:48 > 0:42:51They take a percentage and look after it because I don't have time.
0:42:51 > 0:42:54If you need an electrician, a plumber, they look after that.
0:42:54 > 0:42:56- Bob, I wish you all the best, then. - Thank you, Dion.
0:42:56 > 0:43:00- You'll get it sorted, mate. Good man, good luck.- Thank you.
0:43:00 > 0:43:03What about Bob, hey? How cool is he?
0:43:03 > 0:43:05All those togs are very, very smart.
0:43:05 > 0:43:07He has given himself a two-grand budget.
0:43:07 > 0:43:12Put some paint on the walls, new carpets, done, ready for rent.
0:43:12 > 0:43:15Or will it be? You can find out later on in the programme.
0:43:18 > 0:43:21We've seen how one developer got on, but let's have a look at the other two.
0:43:21 > 0:43:24Well, time has passed, weeks and months, in fact.
0:43:24 > 0:43:27Yes, I wonder how they got on. Should we check it out? Let's.
0:43:29 > 0:43:33Well, it is now back to South London and the suburb of Thornton Heath,
0:43:33 > 0:43:37where earlier we saw this ground floor, three-bedroom garden flat.
0:43:39 > 0:43:42Tired and shabby and dead on its feet, but that didn't put off the new
0:43:42 > 0:43:47owner Teresa, who got it at auction for 150,000.
0:43:47 > 0:43:48But it wasn't Teresa who did the bidding,
0:43:48 > 0:43:51it was her friend Aubrey who viewed it,
0:43:51 > 0:43:53and he advised Teresa to go for it.
0:43:55 > 0:43:58- When you saw this for the first time, were you really happy?- I was.
0:43:58 > 0:44:02I walked in... I know there is work to be done here but I can see through that.
0:44:02 > 0:44:05You know, it is the high ceilings and the size of the rooms
0:44:05 > 0:44:07and the fact it is a three-bedroom.
0:44:07 > 0:44:10And what can be done with the flats. Love it.
0:44:10 > 0:44:13Good, positive thinking from Teresa there, because with
0:44:13 > 0:44:16a 15-grand budget and a four-week turnaround, there was a lot
0:44:16 > 0:44:21that needed doing here, ranging from dealing with the lean-to, changing
0:44:21 > 0:44:25that dated kitchen and bathroom and extending a 71-year-old lease.
0:44:25 > 0:44:29Even with Aubrey, who was a heating engineer, calling on friends,
0:44:29 > 0:44:32that four-week schedule was going to be pushing it.
0:44:40 > 0:44:44But it was a year and eight months later when we returned
0:44:44 > 0:44:48and, with new windows and front door, the flat does look smarter.
0:44:48 > 0:44:51But will the inside be worth that long wait?
0:45:00 > 0:45:04The cramped kitchen and shabby lean-to have given way to a sparkling new
0:45:04 > 0:45:07open-plan kitchen living area.
0:45:07 > 0:45:09Contemporary and stylish,
0:45:09 > 0:45:13it has absolutely given this place a new lease of life.
0:45:14 > 0:45:18Aubrey was away on holiday, but Teresa took us through the changes here.
0:45:21 > 0:45:25Well, we knocked the wall town that was here. There was a wall here.
0:45:25 > 0:45:27I put a entrance through.
0:45:27 > 0:45:30Extended the kitchen. And it is lovely to have the natural light coming through.
0:45:30 > 0:45:34And I wanted the white cupboards with the black tiles,
0:45:34 > 0:45:35making it nice and clean and sharp.
0:45:35 > 0:45:38Door to the bathroom was here.
0:45:38 > 0:45:41And we've closed that up and extended it a little bit,
0:45:41 > 0:45:45put the vanity unit in the bathroom and put the door through in the lounge.
0:45:45 > 0:45:49I love this room, being in here, this is my favourite room in the house.
0:45:49 > 0:45:52Because you've got the natural light in the daytime and it is quiet at night.
0:45:52 > 0:45:56And it is so easy to relax and chill out in the evening.
0:45:58 > 0:46:00The rest of the flat looks just as comfortable,
0:46:00 > 0:46:03ranging from the renovated front bedroom...
0:46:05 > 0:46:08..the middle bedroom...and newly enlarged
0:46:08 > 0:46:10third bedroom.
0:46:10 > 0:46:13The stud wall has been moved further into the original
0:46:13 > 0:46:15sitting room space, but that doesn't feel any smaller
0:46:15 > 0:46:18because of that extended kitchen area.
0:46:18 > 0:46:20I think it all looks really nice and homely.
0:46:20 > 0:46:22I moved in here five months ago.
0:46:22 > 0:46:25And I love it. It is nice to come home from work
0:46:25 > 0:46:28and have my own front door and have friends round when I want to.
0:46:28 > 0:46:30It is nice.
0:46:30 > 0:46:33It certainly is a great-looking chill-out area,
0:46:33 > 0:46:35but if Teresa wants some fresh air,
0:46:35 > 0:46:39she could go through the patio doors into the new courtyard out back.
0:46:43 > 0:46:47Although that rear garden is also the ideal place to catch some sun.
0:46:50 > 0:46:52Teresa got planning permission for the new extension,
0:46:52 > 0:46:56and work started with the entire flat being re-plastered
0:46:56 > 0:46:59and rewired and Aubrey getting stuck in.
0:46:59 > 0:47:01Aubrey has played a big role in the property.
0:47:01 > 0:47:05If it wasn't for Aubrey, I wouldn't have got the place. He saw the potential.
0:47:05 > 0:47:09He has replaced the bathroom, replaced all the central heating.
0:47:09 > 0:47:13He did the stonework in the garden and he was on hand doing jobs
0:47:13 > 0:47:16when the other guys were here working.
0:47:16 > 0:47:20And Teresa also got her own hands dirty by helping to sand
0:47:20 > 0:47:24and varnish the original floorboards and doing some of the decorating.
0:47:27 > 0:47:31Altogether it's an amazing change from the tired flat we
0:47:31 > 0:47:33saw 20 months ago.
0:47:33 > 0:47:36Oh, yes, Teresa, and, er, that timescale?
0:47:36 > 0:47:40We estimated that the work would take four weeks.
0:47:40 > 0:47:43But I did think at the time that was a big, big job
0:47:43 > 0:47:46because everything had to be done here.
0:47:46 > 0:47:48In the end, it took 14 months.
0:47:48 > 0:47:51Getting the workmen to focus on her renovation
0:47:51 > 0:47:54and not moving on to other jobs proved to be the main hold-up,
0:47:54 > 0:47:58but finally Teresa is settled in her new home.
0:47:58 > 0:48:02Hopefully her £15,000 budget didn't suffer the same
0:48:02 > 0:48:04mishaps as the timescale.
0:48:04 > 0:48:06We haven't spent more than 15,000,
0:48:06 > 0:48:10and that's with the help of Aubrey and friends of his,
0:48:10 > 0:48:14who've done the work and, you know, got everything cost price.
0:48:14 > 0:48:17Add it to her purchase price of 150,000,
0:48:17 > 0:48:19and Teresa's total spend here
0:48:19 > 0:48:23is £165,000.
0:48:23 > 0:48:26While Teresa is very happy in her new home,
0:48:26 > 0:48:29she also realises that should she ever decide to sell,
0:48:29 > 0:48:33extending the lease, which had only 71 years left,
0:48:33 > 0:48:38is vital to making the flat attractive to buyers and increasing its value.
0:48:38 > 0:48:41I've just made some enquiries about extending the lease.
0:48:41 > 0:48:45Approximately £10,000-£12,000 is what people are paying at the moment
0:48:45 > 0:48:47to extend their leases, so there won't be a problem
0:48:47 > 0:48:50if I go to sell the place, the lease will be extended.
0:48:52 > 0:48:55But having spent £165,000 on her new home,
0:48:55 > 0:48:59we asked along two local estate agents to find out what
0:48:59 > 0:49:02the local property market will think of Teresa's new investment.
0:49:02 > 0:49:06Starting off with the agent who saw the flat 20 months ago,
0:49:06 > 0:49:07before the changes.
0:49:10 > 0:49:13Well, it truly is an amazing transformation.
0:49:13 > 0:49:15The last time I was here, it was a complete wreck
0:49:15 > 0:49:18and the vendor's done very well on this one.
0:49:22 > 0:49:25The layout of the property works very, very well.
0:49:25 > 0:49:28You don't expect the property to open out at the back the way it does.
0:49:28 > 0:49:30The extension really does help give a lot of space and
0:49:30 > 0:49:32a lot of light to the back of the property.
0:49:32 > 0:49:35I think it works extremely well and, in this area,
0:49:35 > 0:49:36it's what buyers really want.
0:49:36 > 0:49:37The agents like the flat
0:49:37 > 0:49:40but what could it achieve on the resale market?
0:49:40 > 0:49:45Remember, Teresa has so far spent around £165,000
0:49:45 > 0:49:49and reckons extending the lease would set her back 10-12 grand.
0:49:49 > 0:49:53That would make a total outlay of up to 177,000.
0:49:53 > 0:49:57So what sort of returns could Teresa make here?
0:49:57 > 0:49:58With an extended lease,
0:49:58 > 0:50:03we'd put this property on the market at £280,000.
0:50:03 > 0:50:05The resale value of this property with a long lease,
0:50:05 > 0:50:08extended to approximately 125 years,
0:50:08 > 0:50:11would probably be in the region of £280,000-£285,000.
0:50:11 > 0:50:16That is superb, I can't believe that. That's excellent, excellent.
0:50:16 > 0:50:19If Teresa sold it for either of those two valuations,
0:50:19 > 0:50:25she could make a possible pre-tax profit of £103,000-£108,000.
0:50:25 > 0:50:27No wonder she's pleased.
0:50:27 > 0:50:30But what sort of rental income could she expect?
0:50:30 > 0:50:34A property like would rent for approximately £1,250 per calendar month.
0:50:34 > 0:50:37On the rental market, we'd market this property
0:50:37 > 0:50:40at £1,250 per calendar month.
0:50:40 > 0:50:43Gosh, that's amazing, that is amazing.
0:50:43 > 0:50:45That's a lot more than I would expect.
0:50:46 > 0:50:52If Teresa let the flat out based on the £165,000 she's spent so far,
0:50:52 > 0:50:55she could expect an excellent annual yield of around 9%.
0:50:58 > 0:51:00Despite those great potential returns,
0:51:00 > 0:51:04Teresa has no plans to move, and looking at what she's
0:51:04 > 0:51:08- achieved with this place, it's easy to see why.- I feel comfortable here.
0:51:08 > 0:51:11I love coming home from work, shutting my door.
0:51:11 > 0:51:13It's great to have friends come round at weekends,
0:51:13 > 0:51:17I cook meals for my friends, they can stay over. It's good.
0:51:17 > 0:51:20It's a nice feeling and I get a nice feeling when I come in.
0:51:24 > 0:51:26Situated next to the Manchester Ship Canal
0:51:26 > 0:51:29and just south of Warrington in Cheshire,
0:51:29 > 0:51:31is the village of Latchford.
0:51:31 > 0:51:34And it was here we saw a two-bed first-floor flat that was
0:51:34 > 0:51:36built in 2007 and, quite frankly,
0:51:36 > 0:51:40was suffering from nothing more than a bit of wear and tear.
0:51:43 > 0:51:46But it just goes to show, if you do a bit of research, have a look around,
0:51:46 > 0:51:51you can find those little gems that you can turn around very quickly.
0:51:51 > 0:51:54This is definitely one of them.
0:51:54 > 0:51:57And this potential rough diamond certainly had Italian-based
0:51:57 > 0:52:01fashion importer Bob's eyes sparkling when he saw it.
0:52:01 > 0:52:05It's just what I wanted and something, basically,
0:52:05 > 0:52:08- in and out, really.- Exactly.
0:52:10 > 0:52:14So he snapped it up for £75,000 at auction as a part of a growing
0:52:14 > 0:52:15property portfolio.
0:52:15 > 0:52:18- I've never been in a position where I've had spare cash.- OK.
0:52:18 > 0:52:20I've either been getting divorced,
0:52:20 > 0:52:24paying those off, or I did go bankrupt in the early '90s
0:52:24 > 0:52:28and had to recover from that, and my business has always needed
0:52:28 > 0:52:32the money and this is the first time ever I've had some spare cash.
0:52:33 > 0:52:35This was to be his sixth rental property
0:52:35 > 0:52:39and they don't come any more straightforward than this.
0:52:39 > 0:52:43With a budget of no more than £2,000, Bob was hoping to give this flat
0:52:43 > 0:52:45a quick makeover in less than two weeks.
0:52:47 > 0:52:53And now, just nine days later, we're back to check on Bob's progress.
0:52:53 > 0:52:57# If you don't believe I'm leaving
0:52:57 > 0:53:01# Just count the days that I'm gone
0:53:02 > 0:53:06# If you don't believe I'm leaving
0:53:06 > 0:53:10# Just count the days that I'm gone.. #
0:53:13 > 0:53:16I've had to do it in record time, in a week.
0:53:16 > 0:53:21I've got carpets in and a lick of paint.
0:53:27 > 0:53:28Put some fresh blinds up.
0:53:28 > 0:53:31That's the only thing I need to do, but I'm going abroad tomorrow
0:53:31 > 0:53:34so I'll let the agents deal with the last few bits.
0:53:35 > 0:53:39# If you don't believe I'm leaving
0:53:39 > 0:53:43# Just count the days that I'm gone... #
0:53:48 > 0:53:52Yep, just one week. Quite frankly, that's all it needed.
0:53:52 > 0:53:55With no work required to the kitchen or bathrooms,
0:53:55 > 0:53:58the flat is now completely ready to rent out.
0:53:59 > 0:54:04We've already had a viewing, they're coming back tomorrow, Saturday.
0:54:04 > 0:54:08A young couple with a mother. We're hopeful that they're going
0:54:08 > 0:54:12to take it but I'm pretty confident, within a month, we'll have it let.
0:54:12 > 0:54:15It's been a breeze, hasn't it?
0:54:15 > 0:54:19A lick of paint, new carpet, tenant, job done.
0:54:19 > 0:54:22And on to the next one. Is that the plan?
0:54:22 > 0:54:24My strategy is very simple.
0:54:24 > 0:54:29Basically, I want, off these properties, to get a small income,
0:54:29 > 0:54:33so I don't really have to live out of my main business, so I can
0:54:33 > 0:54:37keep generating profits with that. And obviously it's a
0:54:37 > 0:54:41form of pension. I'm not getting any younger and obviously it's
0:54:41 > 0:54:44something I can leave behind once I go, to the family.
0:54:45 > 0:54:47But does this work as an investment?
0:54:47 > 0:54:51Because along with the £75,000 purchase price, Bob reckons
0:54:51 > 0:54:56a quick makeover has cost him around that proposed £2,000 budget.
0:54:56 > 0:55:00So he's got £77,000 tied up in this place.
0:55:00 > 0:55:03What did two local estate agents think about this flat?
0:55:05 > 0:55:07We've had this on the market previously
0:55:07 > 0:55:12and the property was in good order but it's been made better
0:55:12 > 0:55:15by having it repainted, new carpets and generally a good clean.
0:55:15 > 0:55:18First impressions of the property, it's a great apartment
0:55:18 > 0:55:20with water views, nice finish.
0:55:20 > 0:55:23Very soon could make the perfect first-time buyer property.
0:55:23 > 0:55:25I think this being a top-floor apartment,
0:55:25 > 0:55:29having the loft access, as well, which is excellent for storage,
0:55:29 > 0:55:32separates the property from other similar apartments in the area.
0:55:32 > 0:55:34This is a new-build development,
0:55:34 > 0:55:36lots of apartment blocks springing up.
0:55:36 > 0:55:37Certainly very good for rental
0:55:37 > 0:55:40and would certainly make a very good investment property.
0:55:40 > 0:55:43Bob was in the process of building a rental portfolio,
0:55:43 > 0:55:46so isn't currently planning to sell the flat on,
0:55:46 > 0:55:49but has he invested his £77,000 wisely?
0:55:52 > 0:55:54For resale purposes, in its current condition,
0:55:54 > 0:55:57the property's worth £95,000.
0:55:57 > 0:55:59If we were putting this property on to the market,
0:55:59 > 0:56:01we'll be looking at a figure of around £100,000.
0:56:01 > 0:56:0695,000 to 100,000, actually, would almost convince me
0:56:06 > 0:56:09to change my strategy on this, because it's
0:56:09 > 0:56:14nearly 20,000 profit for doing nothing in a matter of a month.
0:56:14 > 0:56:16So if I could do this every month, you'd be laughing, wouldn't you?
0:56:16 > 0:56:18It's not going to tempt me away.
0:56:18 > 0:56:22I'm still going to stand on my original plans of renting,
0:56:22 > 0:56:25but, yeah, delighted with those figures, absolutely delighted.
0:56:27 > 0:56:29And so he should be because as he said,
0:56:29 > 0:56:35those values could see a potential pre-tax profit between £18,000-£23,000
0:56:35 > 0:56:40for a property he bought only six weeks ago and needed minimal work.
0:56:40 > 0:56:43But what about those all-important rental figures?
0:56:43 > 0:56:47For rental purposes, the property would be worth between £500
0:56:47 > 0:56:50and £525 per calendar month.
0:56:50 > 0:56:52In my opinion, this property would be renting for a figure
0:56:52 > 0:56:54of £595 per calendar month.
0:56:54 > 0:56:57Again, they are higher than I expected
0:56:57 > 0:57:01because I've put this on at 510 because I want to move it quickly.
0:57:02 > 0:57:07Well, if he does get that hoped-for £510 per calendar month,
0:57:07 > 0:57:12then Bob would see the flat generate a rental yield of just below 8%.
0:57:12 > 0:57:15And with six properties already bought and rented out, his portfolio
0:57:15 > 0:57:19is coming along nicely. So is his aim to still get a few more?
0:57:21 > 0:57:24Well, we're just completing now on a property
0:57:24 > 0:57:30overlooking the Mersey in Birkenhead, and that's again going to be
0:57:30 > 0:57:32a rental and we'll just continue to look around.
0:57:32 > 0:57:34I rather like this Latchford area.
0:57:34 > 0:57:37I think it could be quite up-and-coming, so if there is
0:57:37 > 0:57:42anything in this area, I think I might continue to look here.
0:57:42 > 0:57:43# When I get with you
0:57:43 > 0:57:45# There's no place I'd rather be... #
0:57:47 > 0:57:50So when Bob isn't in his Italian property in Tuscany,
0:57:50 > 0:57:53it seems Latchford might be the place for him.
0:58:00 > 0:58:01Well, that's it for today's show.
0:58:01 > 0:58:03We'll have more properties for you next time here on
0:58:03 > 0:58:04Homes Under The Hammer.
0:58:04 > 0:58:07So join us to see what happens when the hammer comes down.
0:58:07 > 0:58:08- Goodbye.- Goodbye.