0:00:02 > 0:00:05Hello, and welcome. When you're thinking about buying property,
0:00:05 > 0:00:07the choices can sometimes be overwhelming.
0:00:07 > 0:00:08Yeah, don't get bogged down.
0:00:08 > 0:00:11Get yourself a clear head and get your priorities right.
0:00:11 > 0:00:15Yes, find an area, set a budget, and of course, do your research.
0:00:15 > 0:00:17And of course,
0:00:17 > 0:00:20you might find just what you're looking for under the hammer.
0:00:46 > 0:00:49Many different properties go under the hammer every week.
0:00:49 > 0:00:51Yes, some are ready to move into,
0:00:51 > 0:00:53others require just a little bit more tender loving care.
0:00:53 > 0:00:55Those are the ones we love.
0:00:55 > 0:01:00So, let's see how our buyers got on on today's programme.
0:01:00 > 0:01:01In Tilton on the Hill,
0:01:01 > 0:01:05the kitchen in this charming stone cottage is in need of a rethink.
0:01:05 > 0:01:08I'd be inclined to knock it out, give yourself a bit of an extension.
0:01:10 > 0:01:12While in Croydon, south London,
0:01:12 > 0:01:16some legal complications with this end terrace need investigating.
0:01:16 > 0:01:20It's definitely something that your solicitor should check out.
0:01:20 > 0:01:24And in the town of Rainham in Kent, this bungalow needs paint,
0:01:24 > 0:01:25and lots of it.
0:01:25 > 0:01:29It's very marshmallow-like everywhere, soft powder pink.
0:01:31 > 0:01:33All these properties were bought at auction.
0:01:33 > 0:01:35We find out who got them and how much they paid
0:01:35 > 0:01:39- when these homes went under the hammer.- Sold. Well bought.
0:01:44 > 0:01:46Don't you just sometimes crave the quiet life?
0:01:46 > 0:01:50The chocolate-box cottage, the village green?
0:01:50 > 0:01:52Well, you could always move to Tilton on the Hill.
0:01:52 > 0:01:54It's convenient for pork pies,
0:01:54 > 0:01:56being just eight miles from Melton Mowbray.
0:02:01 > 0:02:03What a beautiful day in a really nice village on
0:02:03 > 0:02:05the outskirts of Leicester.
0:02:05 > 0:02:08It's this building I'm here to see -
0:02:08 > 0:02:13a stone-built cottage with a guide price of £220,000.
0:02:13 > 0:02:16It has three bedrooms, and it is beautiful on the inside.
0:02:16 > 0:02:19But is it beautiful on the inside? Let's have a look.
0:02:23 > 0:02:27OK, we've got a small porch-way area, and right in front
0:02:27 > 0:02:31we've got a shower sort of wet room there and a toilet.
0:02:31 > 0:02:34They are a bit of a strange shape because they are on the corner.
0:02:34 > 0:02:37How you'd reconfigure that, I'm not sure.
0:02:37 > 0:02:39And it does say to me that if there is a toilet downstairs,
0:02:39 > 0:02:41there may not be one upstairs.
0:02:41 > 0:02:46Up a step into the kitchen, which is a little tight.
0:02:46 > 0:02:48But not too bad.
0:02:48 > 0:02:49You'd have to start again in here.
0:02:49 > 0:02:52Got the old-fashioned cooker there.
0:02:52 > 0:02:54Stairs up to the bedrooms.
0:02:54 > 0:02:56A little bit of storage.
0:02:56 > 0:02:59I'm thinking to myself you need some more space.
0:02:59 > 0:03:03I'd be inclined to knock it out and give yourself a bit of an extension.
0:03:03 > 0:03:06Get that extra needed space in and around the kitchen,
0:03:06 > 0:03:09and a bit of a family room as well. Let's see what else there is.
0:03:11 > 0:03:12So, as I'm coming through,
0:03:12 > 0:03:15I can see there is this small lean-to just there
0:03:15 > 0:03:16looking out onto the back garden.
0:03:16 > 0:03:20You can actually feel the heat coming in off that.
0:03:20 > 0:03:24Into the lounge living area, with a real fireplace there -
0:03:24 > 0:03:27what I expected in a village cottage.
0:03:27 > 0:03:29A little bit of central heating as well.
0:03:29 > 0:03:32And I can see through that window, that's the road,
0:03:32 > 0:03:35which is the front of the house, so if you were looking to extend,
0:03:35 > 0:03:39your only option would be to go into the back garden.
0:03:42 > 0:03:44Sometimes extending into the garden
0:03:44 > 0:03:46can really compromise the outside space.
0:03:46 > 0:03:50But in this case, there is plenty of land with this cottage.
0:03:56 > 0:03:59This is a conservation area, so by definition,
0:03:59 > 0:04:01development will be restricted.
0:04:01 > 0:04:03However, there is an old outbuilding
0:04:03 > 0:04:06that is currently being used as a bin store.
0:04:06 > 0:04:11I think this could be developed to be part of the downstairs space.
0:04:12 > 0:04:14# Standing in the garden
0:04:15 > 0:04:17# Your little garden... #
0:04:21 > 0:04:23And there is more to explore back inside.
0:04:24 > 0:04:26Upstairs we have got three bedrooms.
0:04:28 > 0:04:31Bedroom one there, which is a really big bedroom, actually.
0:04:31 > 0:04:32Wasn't expecting that.
0:04:32 > 0:04:36Across the hall, we've got bedroom two, which is quite small.
0:04:36 > 0:04:40Along a long corridor, wasted space there.
0:04:40 > 0:04:43In the bedroom three, which is not only small,
0:04:43 > 0:04:46it's a strange shape as well.
0:04:46 > 0:04:48Now, there is no bathroom, no toilet upstairs.
0:04:48 > 0:04:50So, for me, it's crying out,
0:04:50 > 0:04:53"Turn this into your family bathroom up here,"
0:04:53 > 0:04:55and if you are thinking of doing that extension,
0:04:55 > 0:04:59don't just extend the kitchen - maybe extend above as well,
0:04:59 > 0:05:01which will give you your bedroom back
0:05:01 > 0:05:02so you can have three bedrooms,
0:05:02 > 0:05:05bathroom upstairs and extra living space.
0:05:05 > 0:05:08So, odd-shaped rooms are everywhere here,
0:05:08 > 0:05:10but some space could definitely be put to better use.
0:05:10 > 0:05:14# But I've got a blank space, baby
0:05:14 > 0:05:16# And I'll write your name. #
0:05:21 > 0:05:24We called in a property expert from the auction house which sold the
0:05:24 > 0:05:26property to get his valuations
0:05:26 > 0:05:28and opinions on extending.
0:05:29 > 0:05:33It's a good-sized plot, so there's plenty of scope for extension.
0:05:33 > 0:05:35However, it is in a conservation area,
0:05:35 > 0:05:38so you would have to be a little bit careful on the materials
0:05:38 > 0:05:41that are used to extend the property. It would probably
0:05:41 > 0:05:44have to be in keeping with the surrounding area of local stone
0:05:44 > 0:05:45and possibly slate roofs.
0:05:47 > 0:05:50With a guide price of £220,000,
0:05:50 > 0:05:53what scope is there to modernise and make a profit?
0:05:53 > 0:05:54If it was modernised,
0:05:54 > 0:05:58I'd expect the valuation to be somewhere in the region of 325,000.
0:05:58 > 0:06:01However, if it was extended as well to probably make
0:06:01 > 0:06:05a four-bedroom property, then the valuation probably would be
0:06:05 > 0:06:07somewhere in the region of £450,000.
0:06:07 > 0:06:11So, with a guide price of £220,000, extension or not,
0:06:11 > 0:06:15there is certainly money to be made here.
0:06:15 > 0:06:18But I reckon a house like this in a conservation area
0:06:18 > 0:06:20could eat away at any potential profit
0:06:20 > 0:06:23and this might become a money pit.
0:06:23 > 0:06:25What could it fetch on the rental market?
0:06:25 > 0:06:28Once the property is fully modernised,
0:06:28 > 0:06:31I'd expect the rental to be in the region of £900 per calendar month.
0:06:31 > 0:06:35If the property was extended to provide four bedrooms,
0:06:35 > 0:06:38then I would expect that rental income to increase
0:06:38 > 0:06:40to around £1,200 per calendar month.
0:06:42 > 0:06:46This could be a beautiful family home in some amazing surroundings,
0:06:46 > 0:06:49but it's just a little too small inside.
0:06:49 > 0:06:51If it were mine, I'd look to extend,
0:06:51 > 0:06:54which would give you that much needed extra space.
0:06:54 > 0:06:57Let's see who saw the potential when it went under the hammer.
0:06:57 > 0:06:59Lot number six.
0:06:59 > 0:07:02Beautiful stone three-bedroom character property.
0:07:02 > 0:07:05Who will start me off on the guide at 220, may I say?
0:07:06 > 0:07:10218. 216. 216 is bid.
0:07:10 > 0:07:14We're away at 216,000. 218, sir.
0:07:14 > 0:07:16And 20, on my right.
0:07:16 > 0:07:20'Having reached the guide price, the bids continue in £1,000 steps.
0:07:20 > 0:07:22'We rejoin at £275,000.'
0:07:24 > 0:07:28275. 276. 277.
0:07:28 > 0:07:33Shakes his head. For the first time at £276,000.
0:07:33 > 0:07:36The second time at £276,000.
0:07:36 > 0:07:38Third and final time, if we are all done with it?
0:07:38 > 0:07:41Sold. It's yours, sir. Well bought.
0:07:41 > 0:07:45'Paying a whopping 56 grand over the guide price was Toby.
0:07:45 > 0:07:48'He's the financial brains of a company with Paul,
0:07:48 > 0:07:50'also at the auction.
0:07:50 > 0:07:54'Their 276 grand bid secured the cottage,
0:07:54 > 0:07:56'and it was the building brains of the company Paul
0:07:56 > 0:08:00'who met me back at the property to tell me his plans.'
0:08:00 > 0:08:03- Paul, nice to meet you. How are you? And congratulations.- Thank you.
0:08:03 > 0:08:06- So tell us about the auction. How was it?- Expensive.
0:08:09 > 0:08:12Didn't go our way. We were hoping to bag a bargain.
0:08:12 > 0:08:15And we had somebody who really wanted it the same as us,
0:08:15 > 0:08:16and that has pushed us up a bit.
0:08:16 > 0:08:18So it puts pressure on us now for
0:08:18 > 0:08:19the budget in the construction costs,
0:08:19 > 0:08:21to try and keep that under control.
0:08:21 > 0:08:24Why this particular property in this area?
0:08:24 > 0:08:26It's... We've got a background more in new build.
0:08:26 > 0:08:28We are trying to pick up a single...
0:08:28 > 0:08:30We're a building company - a single building plot.
0:08:30 > 0:08:33Couldn't find any. At the moment they are all overpriced.
0:08:33 > 0:08:35And so we've looked for a bit of a doer-upper.
0:08:35 > 0:08:36It's a new venture for you?
0:08:36 > 0:08:39It is. I mean, I've done a lot of work for people in this kind of
0:08:39 > 0:08:41environment, working for somebody.
0:08:41 > 0:08:45Could be working for you on a refurb, barn conversion, extension, whatever.
0:08:45 > 0:08:46But this is the first time as a company
0:08:46 > 0:08:49- we've taken on this kind of job. - If you're buying land,
0:08:49 > 0:08:53- do you build on that land to rent or to sell again?- For sales.
0:08:53 > 0:08:55No, we can't afford to rent. We have to shift it on,
0:08:55 > 0:08:57and we'll try and shift this on as quickly as we can.
0:08:57 > 0:08:59How are you going to change it?
0:08:59 > 0:09:02This is going to be a subtle renovation of the original cottage.
0:09:02 > 0:09:05The stonework needs restoration. We'll put back timber windows.
0:09:05 > 0:09:07To get our money back because, you know,
0:09:07 > 0:09:08we've got to get the money back.
0:09:08 > 0:09:11We're going to have to put a modest extension
0:09:11 > 0:09:12to gain some extra bedrooms
0:09:12 > 0:09:14and some extra accommodation space on the ground floor.
0:09:14 > 0:09:17Big living kitchen with French doors overlooking the garden
0:09:17 > 0:09:20and then hopefully another one/two bedrooms upstairs.
0:09:20 > 0:09:23Assuming the planning permission goes through, which is always...
0:09:23 > 0:09:26- Planning is always an issue. - And takes time. Puts time on your...
0:09:26 > 0:09:29Yes, takes a lot of time. It does. We've got an existing garage -
0:09:29 > 0:09:32we don't know whether to convert that into another room. Again, budget depending,
0:09:32 > 0:09:35that'll give us a bit more space on the ground floor as well.
0:09:35 > 0:09:37- Yeah, of course.- Possibly an oak frame garage if we can afford it,
0:09:37 > 0:09:40but that isn't... That's looking doubtful at the moment.
0:09:40 > 0:09:43- Talking of purse strings...- Yeah. - What is your budget, sir?
0:09:43 > 0:09:45Well, we always talk ex-VAT, builders,
0:09:45 > 0:09:47and I've done deed sale costs,
0:09:47 > 0:09:51and we're looking at something around 112 plus vat.
0:09:51 > 0:09:53- So we are looking about 130 grand. - Yes, and that's...
0:09:53 > 0:09:55Which is a lot of money. It's the VAT that kills us.
0:09:55 > 0:09:58On the new build, you don't pay VAT.
0:09:58 > 0:10:00Yeah. So the taxman will be happy on this one.
0:10:02 > 0:10:04As well as no VAT on new houses,
0:10:04 > 0:10:06VAT is zero-rated on flats
0:10:06 > 0:10:08if they are new build or on alterations to suit people
0:10:08 > 0:10:13with disabilities, or buildings used for charitable purposes.
0:10:13 > 0:10:16But none of those criteria apply here.
0:10:17 > 0:10:20The whole building - plumbing, electrics, re-plastering -
0:10:20 > 0:10:22it's a complete shell rebuild, really.
0:10:22 > 0:10:24- It is, isn't it? Complete overhaul. - Yeah.
0:10:24 > 0:10:27And how long is that going to take you, fingers crossed?
0:10:27 > 0:10:29Well, that depends whether it's my decision
0:10:29 > 0:10:31or the planning office's decision.
0:10:31 > 0:10:32If we were just able to crack on,
0:10:32 > 0:10:34we'd turn it round in five, six months.
0:10:34 > 0:10:38But we're going to be waiting for planning permission. It's a conservation area.
0:10:38 > 0:10:39I've got the conservation officer
0:10:39 > 0:10:42who is going to have to sign off things like the way we are doing
0:10:42 > 0:10:45the stonework and the restoring of the outside of the building,
0:10:45 > 0:10:46so that will slow us right down.
0:10:46 > 0:10:48What's the best scenario, do you think,
0:10:48 > 0:10:50if you're having to wait for planning and...
0:10:50 > 0:10:52- Within a year. That much difference. - That long?
0:10:52 > 0:10:55We could take three months trying to get planning permission.
0:10:55 > 0:10:58So, I'm going to have to drop away and go and get a job.
0:10:58 > 0:11:01- So, if you want anything doing...- I might be looking for a job as well.
0:11:01 > 0:11:03Pretty soon.
0:11:04 > 0:11:07Work or lack of it might be a laughing matter now,
0:11:07 > 0:11:09but when the recession hit,
0:11:09 > 0:11:13it was far from humorous for Paul and the company.
0:11:13 > 0:11:15We had a couple of big houses we'd built, lovely houses,
0:11:15 > 0:11:18and nobody could get a mortgage. The bank wanted their money back.
0:11:18 > 0:11:20You know, it's a story that's been heard a lot in recent years.
0:11:20 > 0:11:22- Yeah. Of course.- So, this is us.
0:11:22 > 0:11:25It's been a hard five years, six years, coming back, really.
0:11:25 > 0:11:27- It is.- So, this is an important job for us.
0:11:27 > 0:11:31The past experience of Toby and Paul demonstrates only too well problems
0:11:31 > 0:11:35that can hit any kind of property development.
0:11:35 > 0:11:38And even in this more buoyant market, there are issues.
0:11:38 > 0:11:43The shortage of affordable land forcing them to change their plans.
0:11:43 > 0:11:47There is a lot at stake for Toby and Paul, so what's the biggest worry?
0:11:47 > 0:11:49The budget, obviously, is the big issue.
0:11:49 > 0:11:52Whether we can get the specification that we need at
0:11:52 > 0:11:54the high-end to get back what we need.
0:11:54 > 0:11:56So, it's mainly the constraints of the budget.
0:11:56 > 0:11:58The construction doesn't bother me in the slightest.
0:11:58 > 0:12:03- I wish you all the best.- Thank you. - Good luck.- Cheers.- Good luck.
0:12:03 > 0:12:06Paul's found himself a lovely cottage in a really nice village,
0:12:06 > 0:12:10and I can understand why he stuck to his guns at auction.
0:12:10 > 0:12:13But there are a few problems he has to overcome.
0:12:13 > 0:12:15Planning permission - it's in a conservation area,
0:12:15 > 0:12:17which may throw up a few problems.
0:12:17 > 0:12:22And that budget of £130,000 - will it be enough?
0:12:22 > 0:12:24You can find out later on in the programme.
0:12:29 > 0:12:32Today I'm in Croydon, south London,
0:12:32 > 0:12:36home to the Brit School for Performing Arts and Technology.
0:12:36 > 0:12:42Notable alumni include Adele, Jessie J and the late Amy Winehouse.
0:12:42 > 0:12:43# And in your way
0:12:43 > 0:12:45# In this blue shade
0:12:45 > 0:12:49# My tears dry on their own. #
0:12:49 > 0:12:52With the Brit School close by,
0:12:52 > 0:12:56many people have come to Croydon seeking fame and fortune.
0:12:56 > 0:12:58When it comes to property,
0:12:58 > 0:13:03it seems that people are coming here just seeking the fortune bit.
0:13:03 > 0:13:06Croydon is widely tipped to be a real property hotspot,
0:13:06 > 0:13:10with lots of redevelopment, including a new shopping centre.
0:13:10 > 0:13:15So, £180,000 for this could be a really interesting opportunity.
0:13:20 > 0:13:21Before I get into the house -
0:13:21 > 0:13:23although I am actually into the house already -
0:13:23 > 0:13:27I think it's worth noting that I don't think this is what they call
0:13:27 > 0:13:29a standard construction house.
0:13:29 > 0:13:31It's not made of brick, and it just looks wrong from the outside.
0:13:31 > 0:13:34So, definitely some investigation needs to be required.
0:13:34 > 0:13:36My guess is it's a wooden construction
0:13:36 > 0:13:38or possibly concrete slab construction.
0:13:38 > 0:13:40And that throws up issues when it comes to getting mortgages
0:13:40 > 0:13:42and things like that,
0:13:42 > 0:13:45which means it could just be a cash buyer purchase. Anyway, moving on to
0:13:45 > 0:13:47what you actually find when you walk through the door,
0:13:47 > 0:13:50standard construction or not - a kitchen.
0:13:50 > 0:13:53Well, actually, this isn't bad.
0:13:53 > 0:13:55Looks like it's been relatively recently refurbished,
0:13:55 > 0:13:57and at first glance it looks a bit tatty,
0:13:57 > 0:13:59but I think you could sort this out.
0:13:59 > 0:14:02And it's quite a nice sized space for the house,
0:14:02 > 0:14:04compared to what it looks like from the outside.
0:14:04 > 0:14:07Through this little archway into your rear living room, and again,
0:14:07 > 0:14:09not a bad size.
0:14:09 > 0:14:13And be benefited by patio doors out there, out into the garden,
0:14:13 > 0:14:15which would be quite nice.
0:14:16 > 0:14:19Something slightly easier to replace - the wallpaper.
0:14:21 > 0:14:22Not to everyone's taste.
0:14:22 > 0:14:24It sort of comes in and out of fashion.
0:14:24 > 0:14:28It pops in for a few months and then it's out again, thank goodness.
0:14:28 > 0:14:31Something a little less garish, I think.
0:14:32 > 0:14:38Well, a good sized house, and only in need of some cosmetic work.
0:14:38 > 0:14:43# A poor man's roses
0:14:43 > 0:14:47# Are a rich man's gold. #
0:14:47 > 0:14:49So, what about the upstairs?
0:14:51 > 0:14:54Well, upstairs, and again, not in bad condition.
0:14:54 > 0:14:57Toilet and bathroom there. It's pretty serviceable,
0:14:57 > 0:15:00especially if you're going to try and rent this place out.
0:15:00 > 0:15:01And then three bedrooms.
0:15:01 > 0:15:03I mean, I say three bedrooms,
0:15:03 > 0:15:06two of them have been knocked through
0:15:06 > 0:15:09to create this sort of open-plan bedroom design.
0:15:09 > 0:15:11Maybe at some stage this was a master bedroom
0:15:11 > 0:15:13and somebody had a baby or something,
0:15:13 > 0:15:17and this is like the baby's room, so they could at least access that.
0:15:17 > 0:15:20Not to worry, really, in terms of the layout,
0:15:20 > 0:15:24because it's only a stud partition wall, so you can easily change that.
0:15:24 > 0:15:27What is slightly more significant is something I haven't told you about
0:15:27 > 0:15:29the property yet, and that is that it's a probate property,
0:15:29 > 0:15:32as it formed part of the estate of a deceased person.
0:15:32 > 0:15:36Now, that's not necessarily a bad thing, not necessarily a good thing.
0:15:36 > 0:15:38There are complications, perhaps.
0:15:38 > 0:15:41And it's really important that you know exactly what
0:15:41 > 0:15:45the legal circumstances of that probate situation are.
0:15:45 > 0:15:47It's probably detailed in the legal pack.
0:15:47 > 0:15:50It's definitely something that your solicitor should check out,
0:15:50 > 0:15:53so that at least you know one way or the other what's going on.
0:15:53 > 0:15:56Probate, or confirmation as it is known in Scotland,
0:15:56 > 0:16:01means that an executor is sorting out the deceased's affairs,
0:16:01 > 0:16:04and the process can sometimes be fraught and lengthy.
0:16:04 > 0:16:06So, despite the fact that on the face of it
0:16:06 > 0:16:09it looks like a pretty easy doer upper,
0:16:09 > 0:16:11you still need to do your homework.
0:16:11 > 0:16:13Let's take a look outside.
0:16:13 > 0:16:17Well, at the back of the property, a little garden and a garden shed.
0:16:17 > 0:16:21But actually, here you can really see clearly that whole
0:16:21 > 0:16:24non standard construction issue. You need to take a look at that.
0:16:24 > 0:16:27It's not what you expect a house to look like, is it?
0:16:27 > 0:16:30With this sort of fascia board and the pebbledash and...
0:16:30 > 0:16:32Well, if you weren't sure before now,
0:16:32 > 0:16:34then that certainly convinces you.
0:16:34 > 0:16:37So, that is an issue, and all the other ones we talked about.
0:16:37 > 0:16:38But let's come back to this whole thing
0:16:38 > 0:16:40of what's going on in this area.
0:16:40 > 0:16:43And when you're buying property as an investment, what is happening
0:16:43 > 0:16:45around it is clearly one of the most important things,
0:16:45 > 0:16:47and it doesn't get much better than here.
0:16:47 > 0:16:50We've got masses of infrastructure being redeveloped.
0:16:50 > 0:16:52We've got the huge great shopping centre going in.
0:16:52 > 0:16:55You're ten minutes walk from a train station which is 20 minutes into
0:16:55 > 0:17:01the centre of London. It's ticking a lot of investment property boxes.
0:17:01 > 0:17:04So, I'm impressed with the potential of the place.
0:17:04 > 0:17:08But we invited along a local estate agent to get his opinion.
0:17:11 > 0:17:12I believe this is a good property.
0:17:12 > 0:17:15It's got potential, and it's in a very good area.
0:17:15 > 0:17:19If this was my property, I would keep the living room the way it is -
0:17:19 > 0:17:22just change the way the living room looks.
0:17:22 > 0:17:24I would update the kitchen.
0:17:24 > 0:17:25In the upstairs bedroom,
0:17:25 > 0:17:29I would probably block the archway or put a sliding door
0:17:29 > 0:17:32to give the other room some more privacy.
0:17:32 > 0:17:35'And how much would he expect renovations to cost?'
0:17:35 > 0:17:37To get this property up to a good standard,
0:17:37 > 0:17:41I would say you need to spend between £10-£15,000.
0:17:41 > 0:17:43'And once renovation is complete,
0:17:43 > 0:17:45'what does he think the resale value will be?'
0:17:45 > 0:17:47After renovating this property,
0:17:47 > 0:17:50I believe you'll be looking to achieve around
0:17:50 > 0:17:53the £340,000-£350,000 mark.
0:17:53 > 0:17:55'And what does he think you can make in rent?'
0:17:56 > 0:18:00I believe it'll be able to achieve a rental figure of
0:18:00 > 0:18:03£1,300-£1,400 a month, excluding bills.
0:18:04 > 0:18:07Well, it's certainly an interesting opportunity,
0:18:07 > 0:18:10but not without its potential problems.
0:18:10 > 0:18:13The probate being one and the construction being the other.
0:18:13 > 0:18:16Still, with prices going up round here, as they are,
0:18:16 > 0:18:19I'm sure someone took a punt on it when it went under the hammer.
0:18:21 > 0:18:24Three-bed end of terraced house.
0:18:24 > 0:18:26Cheap lot, this.
0:18:26 > 0:18:28I don't know, start 170, go from there?
0:18:28 > 0:18:30170 with you.
0:18:30 > 0:18:35175. 175. 180.
0:18:35 > 0:18:39185. 190. 195.
0:18:39 > 0:18:42'This was a popular lot, and bidding was fierce.
0:18:42 > 0:18:47'We rejoin as bidding reached 262,000.'
0:18:47 > 0:18:49262, madam.
0:18:49 > 0:18:52264. 264, sir.
0:18:52 > 0:18:57264. 266. 265?
0:18:57 > 0:19:00Try and help, might be a psychological barrier.
0:19:00 > 0:19:02265. 266?
0:19:03 > 0:19:08267. 267, elsewhere?
0:19:08 > 0:19:14266, first time, second time, third and last time, if you're all done.
0:19:16 > 0:19:18Sold, 266.
0:19:20 > 0:19:25'And with the successful bid of £266,000
0:19:25 > 0:19:27'were couple Kavita and Kevin.
0:19:27 > 0:19:30'I met up with them back at the house to find out
0:19:30 > 0:19:32'what they had in store for the place.'
0:19:32 > 0:19:34Kavita, Kevin, great to meet you both.
0:19:34 > 0:19:37- Hi, great to meet you too. - Congratulations.
0:19:37 > 0:19:40- Thank you.- Tell me why you wanted to buy this house.
0:19:40 > 0:19:46We want it for investment purposes, as houses are scarce these days,
0:19:46 > 0:19:52so we wanted to bag one as, you know, the prices are still low.
0:19:52 > 0:19:54Is this something you've done before?
0:19:54 > 0:19:57Yes, this is our second now, buy to let property.
0:19:57 > 0:19:59But the first one in auction.
0:19:59 > 0:20:01Right. So why Croydon, then?
0:20:01 > 0:20:06Croydon, it's a lot of improvements, so big shopping centre coming,
0:20:06 > 0:20:08the prices are going to go up soon.
0:20:08 > 0:20:11Right. Now, what do you know about the construction of this house,
0:20:11 > 0:20:13because I'm not so sure.
0:20:13 > 0:20:17It's not...a conventional brick wall.
0:20:17 > 0:20:20- I think it's timber frame, or I was told.- Yeah.
0:20:20 > 0:20:24This house wouldn't fetch as much as a brick house would.
0:20:24 > 0:20:28- Yeah.- Yeah. But still, if we make a profit, we make a profit.
0:20:28 > 0:20:29Yeah, for sure.
0:20:29 > 0:20:32Hm, I've been told this isn't a timber-framed house.
0:20:32 > 0:20:35It's a concrete house with timber cladding,
0:20:35 > 0:20:38which unfortunately can be more of an issue.
0:20:38 > 0:20:42This means if they want to sell this on in the future, the likelihood is
0:20:42 > 0:20:45they'll have to find a cash buyer.
0:20:45 > 0:20:48However, the real problem for Kavita and Kevin
0:20:48 > 0:20:50lies with that probate issue,
0:20:50 > 0:20:55in that the deceased person's name was still on the title deeds
0:20:55 > 0:20:58and not the person who had undertaken the selling of it.
0:20:58 > 0:21:02The property is not really
0:21:02 > 0:21:05registered in the people who are selling, their name, yet,
0:21:05 > 0:21:09so it's a bit of problem getting a mortgage.
0:21:09 > 0:21:11- Yeah.- Ah.
0:21:11 > 0:21:13So, we had to cash-buy the house.
0:21:13 > 0:21:15- Cash buy.- Oh, wow, that could have been a problem.
0:21:15 > 0:21:19- Yeah.- Yeah, well, we managed between the two of us.
0:21:19 > 0:21:22So, did you read the legal pack before the auction?
0:21:22 > 0:21:25- No.- Oh, right. - It's a learning curve.
0:21:25 > 0:21:27Quite a steep one, in this instance,
0:21:27 > 0:21:30because had you not been able to raise the cash,
0:21:30 > 0:21:33- you would have been in deep doo-doo. - Yes, we would be. Yeah.
0:21:36 > 0:21:39That could have been an absolute disaster
0:21:39 > 0:21:42had they not been able to buy the house outright.
0:21:42 > 0:21:46A firm reminder that you should always read the legal pack.
0:21:46 > 0:21:49But now that potential headache is out of the way,
0:21:49 > 0:21:52I was curious to find out what they had planned for the house.
0:21:52 > 0:21:54So, tell me what you're going to do to it.
0:21:54 > 0:21:57Most probably, we change the flooring everywhere.
0:21:57 > 0:22:02And then painting and decorating, do the garden.
0:22:02 > 0:22:05Yeah, do all the tests, electric tests.
0:22:05 > 0:22:07What about the kitchen and the bathroom?
0:22:07 > 0:22:08Are they going to stay the same?
0:22:08 > 0:22:11Looks like it, yes. Because I think the kitchen is not too bad.
0:22:11 > 0:22:14Yeah, so we'll most probably leave it.
0:22:14 > 0:22:18- OK. And then get it on the rental market?- Yes, yes.- And wallpaper?
0:22:18 > 0:22:21- Er, a debate about the wallpaper! - This one...
0:22:23 > 0:22:25There had been a debate, so we'll see.
0:22:25 > 0:22:27Yeah, divides opinion, doesn't it?
0:22:27 > 0:22:31Well, regardless of what happens to that wallpaper, the place is going
0:22:31 > 0:22:34to be getting a face-lift to appeal to prospective renters.
0:22:34 > 0:22:39- So, who is going to be doing the work?- Not me. Kevin.
0:22:39 > 0:22:43I'm going to do the work, and we'll just get some professionals as well.
0:22:43 > 0:22:45OK, what kind of jobs can you do?
0:22:45 > 0:22:49Well, do the floorings, do the decorating.
0:22:49 > 0:22:51So, what is the budget that you've set aside?
0:22:51 > 0:22:56I would say around £5,000 should be enough, for painting
0:22:56 > 0:23:00- and flooring.- And you've got your free labour here, so that's fine.
0:23:00 > 0:23:02- Yeah.- What kind of timescale?
0:23:02 > 0:23:05Because presumably if you want to rent it out, time is money.
0:23:05 > 0:23:09- I think we should be... Very soon.- Very soon.
0:23:09 > 0:23:13- If I say a week? - No! A week?! I think you're being...
0:23:13 > 0:23:16No, I think we would say three to four weeks.
0:23:16 > 0:23:18- Three to four weeks, OK.- A week!
0:23:18 > 0:23:21- You'd need to start now! - He's got his overall in the car.
0:23:21 > 0:23:23Oh, yeah, good. Right, well,
0:23:23 > 0:23:25we better get the interview done and you can get on with it.
0:23:25 > 0:23:27Well, listen, congratulations. Good luck with it.
0:23:27 > 0:23:31- Look forward to seeing how you get on.- Thank you.- Thank you.
0:23:31 > 0:23:34Well, Kavita and Kevin have clearly spotted
0:23:34 > 0:23:37the investment opportunity of this property in Croydon.
0:23:37 > 0:23:41However, they did break one of the Hammer golden rules
0:23:41 > 0:23:43by not reading the legal pack,
0:23:43 > 0:23:45and that could, and in fact probably did,
0:23:45 > 0:23:47get them into all sorts of trouble.
0:23:47 > 0:23:51How will they get on? You can find out later in the show.
0:23:52 > 0:23:54Coming up, in Rainham, Kent,
0:23:54 > 0:23:56Simon and Stephen are in the dark
0:23:56 > 0:23:59as to how their kitchen renovation will turn out.
0:23:59 > 0:24:02That's going to be a mystery to all of us until it happens.
0:24:02 > 0:24:04While in Croydon,
0:24:04 > 0:24:08Kavita and Kevin have learnt a valuable lesson for next time.
0:24:08 > 0:24:12Make sure that we have the legal pack checked over by a solicitor.
0:24:19 > 0:24:21Back now to the Leicestershire countryside
0:24:21 > 0:24:23and the village of Tilton on the Hill,
0:24:23 > 0:24:25where, if you're Hank Marvin,
0:24:25 > 0:24:27a fish and chip van calls twice a week.
0:24:28 > 0:24:30Across the road from St Peter's Church,
0:24:30 > 0:24:33which dates back to 13th century,
0:24:33 > 0:24:35I looked around this three-bed stone built cottage
0:24:35 > 0:24:39sold at auction for £276,000,
0:24:39 > 0:24:44which was a massive 56 grand more than the guide price.
0:24:46 > 0:24:52Up a step into the kitchen, which is a little tight, but not too bad.
0:24:52 > 0:24:54You'd have to start again in here.
0:24:54 > 0:24:56I'm thinking to myself, "You need some more space."
0:24:56 > 0:25:00I'd be inclined to knock it out, give yourself a bit of an extension.
0:25:00 > 0:25:03Get that extra needed space in and around the kitchen,
0:25:03 > 0:25:06and a bit of a family room as well.
0:25:06 > 0:25:10'Business partners Toby and Paul made the highest bid on the day.
0:25:10 > 0:25:12'Usually they focus on new build developments,
0:25:12 > 0:25:15'but the high cost of land forced them to move on
0:25:15 > 0:25:17'and try renovation instead.
0:25:17 > 0:25:19'I met builder Paul to find out their plan
0:25:19 > 0:25:21'for this cottage in a conservation area.'
0:25:21 > 0:25:24There's going to be a subtle renovation of the original cottage.
0:25:24 > 0:25:26The stonework needs some restoration.
0:25:26 > 0:25:28We'll put back timber windows.
0:25:28 > 0:25:32And to get the floor area up, to get our money back, because you know,
0:25:32 > 0:25:34we've got to get the money back,
0:25:34 > 0:25:36we're going to have to put a modest extension
0:25:36 > 0:25:37to gain some extra bedrooms
0:25:37 > 0:25:40and some extra accommodation space on the ground floor.
0:25:40 > 0:25:42Big living kitchen with French doors overlooking the garden,
0:25:42 > 0:25:45and then hopefully another one/two bedrooms upstairs.
0:25:45 > 0:25:48Assuming the planning permission goes through, which is always...
0:25:48 > 0:25:51- Planning is always an issue. - And takes time. Puts time on your...
0:25:51 > 0:25:54Yes, takes a lot of time. It does.
0:25:54 > 0:25:59Paul's estimated budget with a two-storey extension was 130 grand
0:25:59 > 0:26:03and a planning-dependent timescale of up to a year.
0:26:03 > 0:26:08We're back six months later to see if there is a two-storey extension.
0:26:09 > 0:26:12No, but there is substantial additional accommodation
0:26:12 > 0:26:15thanks to permitted development. As feared,
0:26:15 > 0:26:18the planning process was taking too long for Toby and Paul,
0:26:18 > 0:26:20so they found another way.
0:26:20 > 0:26:23# One way or another I'm going to see you... #
0:26:24 > 0:26:27I knew that extending to make the kitchen bigger
0:26:27 > 0:26:30was the way to go here. It is fabulous.
0:26:30 > 0:26:36With limestone tiles, oak worktops, bespoke carpentry windows and doors.
0:26:44 > 0:26:46The other obvious layout change is
0:26:46 > 0:26:49the transformation of the former bin store.
0:26:53 > 0:26:56It's become an integrated study.
0:27:05 > 0:27:08Paul uncovered an original doorway from the house,
0:27:08 > 0:27:10complete with oak lintel that had been walled up.
0:27:13 > 0:27:17Other dramatic changes have happened upstairs.
0:27:17 > 0:27:20Paul was determined to make way for a bathroom up here.
0:27:22 > 0:27:25# One way or another I'm going to see you... #
0:27:29 > 0:27:33A small amount of space has been taken from bedroom two to create
0:27:33 > 0:27:36a family bathroom, leaving a good-sized single.
0:27:39 > 0:27:43Bedroom one has also seen a change of floor plan.
0:27:43 > 0:27:45An en-suite shower room has been added.
0:27:47 > 0:27:51And like the family bathroom, there is a new roof window to illuminate.
0:27:54 > 0:27:57The third bedroom still has some unusual corner angles,
0:27:57 > 0:27:59but everywhere has been replastered.
0:28:00 > 0:28:03Heading back downstairs, where the old kitchen was is a new hallway.
0:28:05 > 0:28:07Which all goes to prove,
0:28:07 > 0:28:09if you can't get the planning permission you want,
0:28:09 > 0:28:12there is always plenty you can still do.
0:28:12 > 0:28:15# One way or another. #
0:28:15 > 0:28:18This is not the fireplace that you guys last saw when you were here.
0:28:18 > 0:28:20Behind the 1940s or '50s fireplace,
0:28:20 > 0:28:23we found this lovely original Georgian fireplace.
0:28:23 > 0:28:24We haven't touched that.
0:28:24 > 0:28:26That is exactly how it was the day it was built.
0:28:26 > 0:28:29The only thing we have changed is we put a new fire basket in
0:28:29 > 0:28:32and a new hearth. Think it's a lovely feature.
0:28:32 > 0:28:34We are really glad we did it, and everybody loves an open fire.
0:28:34 > 0:28:37Regarding some of the features, we've actually managed to bring
0:28:37 > 0:28:39a lot of them back that were completely hidden,
0:28:39 > 0:28:42that had been patched up and covered over the years. For example,
0:28:42 > 0:28:45a lot of lovely beams, timber beams, that we've brought back.
0:28:45 > 0:28:48A lot of exposed stonework that was covered over that we've brought back
0:28:48 > 0:28:50into the building that is now on show that wasn't on show before.
0:28:50 > 0:28:52I'm very pleased with the way the cottage looks.
0:28:52 > 0:28:55It's a very subtle renovation. I don't like bling.
0:28:55 > 0:28:58I think what we've done is brought back a lot of the original character
0:28:58 > 0:29:01of the old building while adding to it in a very subtle way.
0:29:01 > 0:29:04Latterly, Paul has been working on a property in Islington
0:29:04 > 0:29:06for two days a week,
0:29:06 > 0:29:09making the transformation here in just five and a half months
0:29:09 > 0:29:11all the more impressive.
0:29:11 > 0:29:14I could have done it quicker if we'd thrown more labour at the job,
0:29:14 > 0:29:16but I've done a lot myself in terms of the dirty work,
0:29:16 > 0:29:19the ripping out. So, to keep the cost down,
0:29:19 > 0:29:22it actually made the job take a little bit longer.
0:29:22 > 0:29:26I suppose that's one of the benefits of working for yourself.
0:29:26 > 0:29:29The budget was going to be £130,000,
0:29:29 > 0:29:31but that was for a two-storey extension.
0:29:31 > 0:29:34How did it all work out in the end?
0:29:34 > 0:29:37We've spent in total £78,500.
0:29:37 > 0:29:42That includes legal fees, VAT and everything to date.
0:29:42 > 0:29:45Paul usually works on new builds, where houses are zero rated.
0:29:45 > 0:29:48But in the case of a conversion like this one,
0:29:48 > 0:29:51he can't claim back any of the VAT spent on it.
0:29:53 > 0:29:54The plan for the cottage originally was
0:29:54 > 0:29:56always to sell it as soon as possible
0:29:56 > 0:29:57to try and get the funds back,
0:29:57 > 0:30:00so that we can carry on and try and do it again,
0:30:00 > 0:30:01and that is still the plan.
0:30:02 > 0:30:06We called in two property experts to cast their eye over the conversion
0:30:06 > 0:30:08and give us some valuations.
0:30:08 > 0:30:14Paul's company have spent £354,500 in total on this project.
0:30:14 > 0:30:16Was that wise?
0:30:16 > 0:30:20Yeah, the second time inside the property for myself.
0:30:20 > 0:30:22I really like the property.
0:30:22 > 0:30:24A lot of renovation work has been carried out.
0:30:24 > 0:30:27It also been extended and finished to a really, really high standard.
0:30:27 > 0:30:31The house itself has been done very, very well, to a high standard,
0:30:31 > 0:30:33so any buyer moving in here
0:30:33 > 0:30:35has got nothing to do at all.
0:30:35 > 0:30:38They are as impressed with this place as I am,
0:30:38 > 0:30:42but will Paul and Toby have made a profit on their investment of
0:30:42 > 0:30:44£354,500?
0:30:44 > 0:30:47If the property was placed on the open market for sale
0:30:47 > 0:30:50I would suggest an asking price of £435,000,
0:30:50 > 0:30:53with hopefully a sale price close to that figure.
0:30:53 > 0:30:56Currently, if it was to be put on the open market,
0:30:56 > 0:30:59I would expect you to achieve around £440,000.
0:30:59 > 0:31:02That would be fabulous. If we can achieve something close to that,
0:31:02 > 0:31:04that would be a good job for us.
0:31:04 > 0:31:09That's a potential growth of £85,500 before taxes and expenses.
0:31:09 > 0:31:11So, are there any final thoughts?
0:31:13 > 0:31:14If I could have my time again,
0:31:14 > 0:31:16I would probably work harder at school,
0:31:16 > 0:31:20go to university and become a dentist.
0:31:20 > 0:31:21Well, there's been a good job done
0:31:21 > 0:31:24in filling in the cracks in this mortar.
0:31:30 > 0:31:33Today, I'm in the town of Rainham, Kent.
0:31:33 > 0:31:37It's a small town with a population of just over 6,000,
0:31:37 > 0:31:40but, with good commuter links to London, it is fast becoming
0:31:40 > 0:31:43a great option if you are looking for some peace and quiet from
0:31:43 > 0:31:46the hustle and bustle of the capital.
0:31:46 > 0:31:49The house I'm here to see is in the Parkwood estate.
0:31:51 > 0:31:55The most recent property explosion in the town came in the 1960s,
0:31:55 > 0:31:59when this very large estate was built and, at the time,
0:31:59 > 0:32:01it was the largest in Europe.
0:32:01 > 0:32:04Well, this is where I'm going to find a three-bed bungalow,
0:32:04 > 0:32:10which went to auction with a guide price of 165,000 to 175,000.
0:32:11 > 0:32:16It's quite leafy here, but that is a big tree, for sure.
0:32:16 > 0:32:19I think I'd want to get some advice from a tree surgeon and check out
0:32:19 > 0:32:21if there isn't a Tree Preservation Order on it.
0:32:21 > 0:32:26That can mean it's a criminal offence to damage it in any way.
0:32:26 > 0:32:28Now, I've got a feeling this bungalow
0:32:28 > 0:32:32is going to be incredibly dated. Oh, or incredibly pink.
0:32:32 > 0:32:36It's very marshmallow-like everywhere, soft powder pink,
0:32:36 > 0:32:39but we've got some great space, a rather large kitchen.
0:32:39 > 0:32:40Quite a lot of units in there.
0:32:40 > 0:32:42Maybe think about taking some of those out,
0:32:42 > 0:32:44because I don't think you need them all.
0:32:44 > 0:32:47We've got a dining room, which could be bedroom three.
0:32:47 > 0:32:49That's what it says in the catalogue.
0:32:49 > 0:32:51Really nice-sized lounge through there
0:32:51 > 0:32:54and then through into this unusual,
0:32:54 > 0:32:58sort of, partitioned corridor bit, with another pink door,
0:32:58 > 0:33:01and you've got a separate loo, separate bathroom.
0:33:01 > 0:33:02Great big bedroom here,
0:33:02 > 0:33:05which is really nice to see, with loads of light,
0:33:05 > 0:33:07and another bedroom here.
0:33:07 > 0:33:10So, what would I do to really improve this place?
0:33:10 > 0:33:12Well, for starters,
0:33:12 > 0:33:15I'd have to sort out this rather awkward corridor area.
0:33:15 > 0:33:18Take out the partition bit at the top, get rid of the door,
0:33:18 > 0:33:20just to open up the corridor.
0:33:20 > 0:33:24I would also think about taking this wall out here between
0:33:24 > 0:33:28the loo and the bathroom, to have one really nice big space,
0:33:28 > 0:33:30because I think that would work well. And also, get rid of
0:33:30 > 0:33:33some of those kitchen units to have a kitchen-diner,
0:33:33 > 0:33:38and I would definitely call the dining room bedroom number three.
0:33:38 > 0:33:42Oh, yeah, and paint the place. It's just too pink for me!
0:33:43 > 0:33:47# Pink it's my new obsession
0:33:47 > 0:33:49# Yeah
0:33:49 > 0:33:53# Pink it's not even a question... #
0:33:53 > 0:33:55My obsession isn't pink, though.
0:33:55 > 0:33:58Mine is knocking walls down, and I think changing
0:33:58 > 0:34:01the configurations and updating the kitchen and bathroom
0:34:01 > 0:34:05would make this popular with a wide range of buyers and renters.
0:34:05 > 0:34:10After that, it's just about the decoration, really.
0:34:10 > 0:34:14Now, in the 1970s and '80s, textured ceilings were all the rage.
0:34:14 > 0:34:19Oh, yes, they were so popular. But then in the 21st century...
0:34:19 > 0:34:22Well, they've fallen well and truly out of favour, out of fashion.
0:34:22 > 0:34:26But it's not just about their look, but unfortunately,
0:34:26 > 0:34:28they can actually be dangerous too.
0:34:28 > 0:34:30This is because their coating
0:34:30 > 0:34:34sometimes can contain white asbestos to strengthen it and,
0:34:34 > 0:34:36if the asbestos is disturbed,
0:34:36 > 0:34:38it can be hazardous to your health,
0:34:38 > 0:34:41so no trying to sand it down and making it flat.
0:34:42 > 0:34:45Sanding it down, hanging up light fittings and so on
0:34:45 > 0:34:48could release the dangerous asbestos fibres.
0:34:50 > 0:34:52- # Said enough is enough - Enough is enough
0:34:52 > 0:34:56# Oh, buddy and I'm rough stuff... #
0:34:56 > 0:34:59It's the textured plaster made before the mid-'80s
0:34:59 > 0:35:01that may contain asbestos.
0:35:01 > 0:35:04You can have a sample tested to be sure, but if asbestos is present
0:35:04 > 0:35:07I recommend getting advice from
0:35:07 > 0:35:10a plasterer accredited in asbestos awareness.
0:35:10 > 0:35:12But something a little less treacherous is the garden.
0:35:12 > 0:35:16Now, at the back there's a small but well-appointed little plot
0:35:16 > 0:35:19that I'm sure would satisfy any green-fingered buyer.
0:35:19 > 0:35:23So all in all, a great three-bed bungalow,
0:35:23 > 0:35:25but would it be a sound investment?
0:35:26 > 0:35:30We invited along a local estate agent to get his opinion.
0:35:34 > 0:35:37Rainham's a good area. It's very popular at the moment.
0:35:37 > 0:35:40We've got a lot of people working, moving out of London to the area.
0:35:40 > 0:35:43You've got good schooling, easy access to shops, bus routes.
0:35:43 > 0:35:46Very popular as well. Ticks a lot of boxes.
0:35:46 > 0:35:51'Location is key, so that all sounds good, assuming this bungalow,
0:35:51 > 0:35:56'guided between £165,000-£170,000, got a good update.
0:35:56 > 0:36:00'So, would it be a hare or a tortoise on the open market?'
0:36:02 > 0:36:05This bungalow could resell for in the region of anything from
0:36:05 > 0:36:08£220,000-£225,000.
0:36:08 > 0:36:10'And if rented out?'
0:36:10 > 0:36:13Once renovated, this bungalow could achieve in the region of anything
0:36:13 > 0:36:16up to about £850 per calendar month.
0:36:16 > 0:36:20Well, if you like the colour pink, this bungalow is good to go,
0:36:20 > 0:36:24but somehow I don't think it will be to everybody's taste. Saying that,
0:36:24 > 0:36:26I don't think it'll take too much work to modernise it
0:36:26 > 0:36:29and create a lovely home for someone.
0:36:29 > 0:36:31So, who could see the wood for the trees?
0:36:31 > 0:36:33Let's head to the auction and find out.
0:36:34 > 0:36:38Lot 62. Detached bungalow for improvement.
0:36:38 > 0:36:41Guide of 165 to 170.
0:36:41 > 0:36:42Where are we starting on this one?
0:36:42 > 0:36:44155, can I say?
0:36:44 > 0:36:45Give me 150, then.
0:36:45 > 0:36:48It's got to be worth 150 and I shan't go below that.
0:36:48 > 0:36:51150. And two. 152.
0:36:51 > 0:36:55152. And 154. 154 and 6.
0:36:55 > 0:36:58'Well, this lot came up towards the end of auction day,
0:36:58 > 0:37:02'and while interest seemed slow initially, it did pick up momentum,
0:37:02 > 0:37:07'and we rejoin when the bids had reached £176,000.'
0:37:07 > 0:37:11176. 178. 178.
0:37:11 > 0:37:14To the gentlemen at the front. 178 for either of you?
0:37:14 > 0:37:18178, I'm looking for. Are we all done, then, at...?
0:37:18 > 0:37:22178. 180. 180.
0:37:22 > 0:37:23I'll take one if it helps.
0:37:23 > 0:37:28179. 179. 180. 180, may I say?
0:37:28 > 0:37:30£179,000, I have.
0:37:30 > 0:37:33Are we all done at 179,000?
0:37:33 > 0:37:36I shall sell for the first time...
0:37:36 > 0:37:40Second time... Third and final time, at £179,000...
0:37:40 > 0:37:43Sold, sir, and the bidder's card number?
0:37:48 > 0:37:51'And with the successful bid of 179,000
0:37:51 > 0:37:54'was Simon on the right and Stephen on the left.
0:37:54 > 0:37:56'Workmates in the IT industry,
0:37:56 > 0:38:00'they've been friends for over 20 years and decided to join forces
0:38:00 > 0:38:03'for their first property investment.'
0:38:03 > 0:38:06- Stephen and Simon, congratulations. - Thank you.
0:38:06 > 0:38:09So, I want to know the story about who wanted to buy this
0:38:09 > 0:38:11and who ended up bidding for it on the day?
0:38:11 > 0:38:14Well, it's... It was all his idea and...
0:38:14 > 0:38:18- My fault.- And this is a better return on money, sort of thing,
0:38:18 > 0:38:22and he says, "Put it into a house. Do it up, and push it on."
0:38:22 > 0:38:24He's seen great TV programmes. He's seen how easy it is to do it.
0:38:24 > 0:38:26- He's totally blaming you. - Oh, absolutely.
0:38:26 > 0:38:29Especially at the end when I said, "Don't bid any more."
0:38:29 > 0:38:31- And he bid one more bid.- Yes! - So we actually got this.
0:38:31 > 0:38:34So we tossed the coin and he bidded, because it was better, I thought.
0:38:34 > 0:38:37With both of us bidding, it might be a bit of a mess, so we lumped it on him.
0:38:37 > 0:38:39Well, you've got it in the film.
0:38:39 > 0:38:42You'll see that just when we get around whatever the figure is at,
0:38:42 > 0:38:43he is sort of going,
0:38:43 > 0:38:45"I think we should cut it out." And I suddenly panic and I go,
0:38:45 > 0:38:47"What did you say?"
0:38:47 > 0:38:49And at this point the auctioneer's up there saying,
0:38:49 > 0:38:51"Well, do you want to?" And I'm saying,
0:38:51 > 0:38:54"What do you mean you want to stop? Yes, carry on!"
0:38:54 > 0:38:56I go back to him and then he says, "Sold."
0:38:56 > 0:38:58And the other person had folded out.
0:38:58 > 0:39:01So, did you find it, you know, completely pressurising on the day?
0:39:01 > 0:39:04- He did.- Were you under pressure? - He was...so much pressure.
0:39:04 > 0:39:05I was a mess for days afterwards.
0:39:05 > 0:39:07He was shaking. He was shaking really, really badly.
0:39:07 > 0:39:09- I-I...- Because he's spending my money.
0:39:09 > 0:39:11Yes, he's... He's the major investor.
0:39:11 > 0:39:14We are 60-40, so he spent more money than...
0:39:14 > 0:39:16Yeah, I'll say he is a bit responsible.
0:39:16 > 0:39:19OK, so, let's talk about the price you paid. Happy with that?
0:39:19 > 0:39:23We were going to go to 180, and we got it for 179.
0:39:23 > 0:39:26OK, so, you've got a spare £1,000,
0:39:26 > 0:39:29and you ended up having to spend that spare £1,000, didn't you?
0:39:29 > 0:39:32- What happened? Tell me what happened.- We read the legal pack,
0:39:32 > 0:39:34as instructed on Homes Under The Hammer,
0:39:34 > 0:39:39but unfortunately we missed Section 18, Subsection 2, or something,
0:39:39 > 0:39:41that said we had to pay the vendor's solicitor's fees.
0:39:41 > 0:39:43- Which was?- About £1,000.
0:39:43 > 0:39:46So, there you go, there is your £1,000 snapped up straight away.
0:39:46 > 0:39:50- Yeah.- Well, they do get ten out of ten for reading the legal pack.
0:39:50 > 0:39:54However, the packs can be very detailed and complex so, if you can,
0:39:54 > 0:39:56it is safer to have your solicitor have a look at it
0:39:56 > 0:39:58before the auction.
0:39:58 > 0:40:02Luckily, in this instance, it hasn't broken the bank.
0:40:02 > 0:40:04But while we're on the subject of money...
0:40:04 > 0:40:06So, how much have you got to spend here?
0:40:06 > 0:40:10- What's your budget? - We reckon we've got £12,000
0:40:10 > 0:40:14that we can actually spend on the place itself.
0:40:14 > 0:40:16That will then leave us with the profit
0:40:16 > 0:40:18that we expect to get from the place as well.
0:40:18 > 0:40:20OK, so you want to spend £12,000 here.
0:40:20 > 0:40:23- Yeah.- Thinking about the profit you might want to make,
0:40:23 > 0:40:24what do you think you can do for £12,000
0:40:24 > 0:40:27that would really make this place sell quickly?
0:40:27 > 0:40:29The biggest thing I think is the kitchen and bathroom.
0:40:29 > 0:40:32- Yes.- I think that sells all properties.
0:40:32 > 0:40:35- Yeah.- The bathroom at the moment is a separate bath and loo,
0:40:35 > 0:40:39and we're going to take the wall in between and close off one of
0:40:39 > 0:40:41the doors, cos it's got so many doors in this place,
0:40:41 > 0:40:43so lose a door or two if we can, and then the kitchen.
0:40:43 > 0:40:47We spent quite a lot of time looking at kitchens with various companies.
0:40:47 > 0:40:50We're going to try and keep it looking fresh and not too modern,
0:40:50 > 0:40:54cos round here most people we have seen are of an age...
0:40:54 > 0:40:57- Yeah. Yeah.- We don't want things that are all electronic and stuff.
0:40:57 > 0:40:59- Yeah.- So a nice, sensible kitchen.
0:40:59 > 0:41:01Yeah, I'd go for something really classic.
0:41:01 > 0:41:02- Yes.- That's the word. Classic.
0:41:02 > 0:41:05- Yes.- Classic. Classic rather than fashionable.- Yes.- Absolutely.
0:41:05 > 0:41:07At this point, I'd like to say, can we just look up?
0:41:07 > 0:41:10- Ding!- Yes, absolutely.
0:41:10 > 0:41:13His... His sister doesn't believe we should change it.
0:41:13 > 0:41:16- And why is that?- Cos it's too much like hard work.
0:41:16 > 0:41:19- OK, that's... That will definitely put some people off.- Me too.
0:41:19 > 0:41:22It reminds me of a sort of top of a wedding cake.
0:41:22 > 0:41:24Meringue time, yes. And, interestingly,
0:41:24 > 0:41:26every room has been done differently.
0:41:26 > 0:41:30- Yes.- There's a different pattern in every room so...- Yes.
0:41:30 > 0:41:31I hate it, to be honest.
0:41:34 > 0:41:35'Simon and Stephen
0:41:35 > 0:41:37'hope they can make the most of their £12,000 budget
0:41:37 > 0:41:40'by doing most of the work here themselves,
0:41:40 > 0:41:42'as well as support from family and friends,
0:41:42 > 0:41:46'including Simon's brother-in-law, who is a builder by trade.
0:41:46 > 0:41:49'Always helps when you've got a trade in the family.'
0:41:51 > 0:41:53So, it seems like you guys are going to have lots of fun along the way.
0:41:53 > 0:41:56- Am I right in saying that? - Hopefully. Yes, we think so.
0:41:56 > 0:41:58We're going to look after this project and think of it as
0:41:58 > 0:42:01- another adventure that we've been on and enjoy it.- Yes.
0:42:01 > 0:42:03Guys, it's been lovely meeting you both today.
0:42:03 > 0:42:05- And you, too.- I'm really excited to see the outcome
0:42:05 > 0:42:07- and to see what that kitchen looks like.- So do I.
0:42:07 > 0:42:10- How classic it's going to be. - Yes.- Yes.
0:42:10 > 0:42:13Yeah, it's going to be a mystery to all of us until it happens.
0:42:13 > 0:42:15- Thank you very much, indeed. - Thank you.- Thank you.
0:42:15 > 0:42:17Thank you very much.
0:42:17 > 0:42:21So, they've been friends for over 20 years, but how will Stephen
0:42:21 > 0:42:25and Simon get on during their first renovation project together?
0:42:25 > 0:42:28Now, it sounds like they've got a good support network around them,
0:42:28 > 0:42:32but will this double act still be chums at the end of all the work?
0:42:32 > 0:42:34Join me later on in the programme
0:42:34 > 0:42:36and you can find out how they get on.
0:42:40 > 0:42:42Well, one of our buyers has won the race.
0:42:42 > 0:42:44Yeah, but will the other two cross the finishing line?
0:42:44 > 0:42:47Yes, or will they come up short? Let's find out.
0:42:48 > 0:42:52Let's head back now to up-and-coming Croydon in south London,
0:42:52 > 0:42:55where I visited this three-bedroom end terrace property
0:42:55 > 0:42:58with a guide price of £180,000.
0:42:58 > 0:43:01Inside, it was a spacious family home,
0:43:01 > 0:43:04and it wasn't in bad condition at all.
0:43:04 > 0:43:08Downstairs looked fine, apart from the wallpaper.
0:43:08 > 0:43:10I prefer my roses in the garden.
0:43:10 > 0:43:16And upstairs, the bathroom is OK, but the three bedrooms...
0:43:16 > 0:43:18Well, two of them have been knocked through
0:43:18 > 0:43:22to create this open-plan bedroom design.
0:43:22 > 0:43:25Open-plan bedrooms? Uh-uh, not for me.
0:43:25 > 0:43:29But, all in all, nothing worrying, except, the devil, as ever,
0:43:29 > 0:43:31is in the detail.
0:43:31 > 0:43:34This house was of non-standard construction,
0:43:34 > 0:43:36which can make getting a mortgage tricky,
0:43:36 > 0:43:39but the real danger lay in the legal pack.
0:43:39 > 0:43:42This house was a probate sale.
0:43:42 > 0:43:44There are complications, perhaps.
0:43:44 > 0:43:48It's really important that you know exactly what the legal circumstances
0:43:48 > 0:43:51of that probate situation are.
0:43:51 > 0:43:53Researching this detail would have revealed that
0:43:53 > 0:43:56the title deeds were not yet registered in the name of
0:43:56 > 0:43:59the person overseeing the deceased person's affairs,
0:43:59 > 0:44:04something buyers Kavita and Kevin were not aware of
0:44:04 > 0:44:07when they paid £256,000 for the place.
0:44:07 > 0:44:11- So, did you read the legal pack before the auction?- No.- Oh, right.
0:44:11 > 0:44:12So, we had to cash-buy the house.
0:44:12 > 0:44:15- Cash-buy the house.- Oh, wow, that could have been a problem.
0:44:15 > 0:44:16- Yeah.- Yeah.
0:44:16 > 0:44:19So, with a budget of £5,000
0:44:19 > 0:44:22and setting themselves a timescale of three to four weeks,
0:44:22 > 0:44:25would Kavita and Kevin have any more surprises?
0:44:25 > 0:44:28We returned six weeks later to have a look.
0:44:30 > 0:44:32# Bang bang into the room
0:44:32 > 0:44:34# I know you want it... #
0:44:35 > 0:44:38As you can see, the place has been freshened up a bit.
0:44:38 > 0:44:40In the living room,
0:44:40 > 0:44:41the tatty carpet has been ripped out
0:44:41 > 0:44:44and replaced with contemporary laminate flooring.
0:44:44 > 0:44:48Although, I can see that flowery wallpaper has survived.
0:44:48 > 0:44:51They've also closed off the archway from the kitchen,
0:44:51 > 0:44:53making the two spaces separate.
0:44:53 > 0:44:56Through here, they've made a few minor changes,
0:44:56 > 0:44:59but as the kitchen was in decent condition before,
0:44:59 > 0:45:02Kavita and Kevin have chosen to give it a clean
0:45:02 > 0:45:04and a fresh coat of paint.
0:45:04 > 0:45:07In the hallway, the WC has had a similar treatment,
0:45:07 > 0:45:10brightening the space up a bit.
0:45:10 > 0:45:13Upstairs, the previous open-plan double bedroom has been closed off,
0:45:13 > 0:45:17and this alcove created, giving the smaller bedroom more space.
0:45:17 > 0:45:19Like the downstairs,
0:45:19 > 0:45:22it's been freshly painted and new flooring laid -
0:45:22 > 0:45:24simple changes but to good effect.
0:45:26 > 0:45:29The bathroom, like the kitchen, was in good condition before,
0:45:29 > 0:45:31so again they've only made simple alterations
0:45:31 > 0:45:33with the addition of new flooring.
0:45:34 > 0:45:38Out back, and the garden has been tidied up. As you can see,
0:45:38 > 0:45:40there are still a few finishing touches to be done,
0:45:40 > 0:45:43but once the slabbing is finished, it will be a low-maintenance space
0:45:43 > 0:45:46appropriate for a rental property.
0:45:46 > 0:45:49And speaking of which, Kavita and Kevin already have tenants lined up,
0:45:49 > 0:45:53and they've been vocal during the renovation.
0:45:53 > 0:45:57We decided to close the bit through the kitchen and lounge,
0:45:57 > 0:45:59because the tenant wanted it this way.
0:45:59 > 0:46:03I think it's easier for them, so as we require...
0:46:03 > 0:46:05We are not living in there, so we closed it.
0:46:05 > 0:46:10- Yeah.- 'So I wonder if keeping that wallpaper was their doing too.'
0:46:10 > 0:46:13Yeah, the wallpaper stayed, I'm afraid,
0:46:13 > 0:46:15because we showed it to the tenant when they came
0:46:15 > 0:46:17and they seemed to like it,
0:46:17 > 0:46:19so I said, "OK." They wanted it left so we left it.
0:46:20 > 0:46:22'Each to their own, I guess.
0:46:22 > 0:46:25'Kevin was responsible for project managing the renovation
0:46:25 > 0:46:28'and did much of the work himself with the help of some builders,
0:46:28 > 0:46:34'so how did he manage that budget of £5,000?'
0:46:34 > 0:46:37Yeah, on the project we spent £5,000-£6,000.
0:46:37 > 0:46:43'That takes their total spend on the property to around £272,000.
0:46:43 > 0:46:46'But what about the timescale they set of three to four weeks?'
0:46:48 > 0:46:51We went slightly over with the timescale, because, each time
0:46:51 > 0:46:53we thought the work was done,
0:46:53 > 0:46:56there was something else little, here and there, cropped up -
0:46:56 > 0:46:59like we needed to move the boiler from where it was,
0:46:59 > 0:47:01to be able to be certified.
0:47:01 > 0:47:03The gas certificate wasn't good enough,
0:47:03 > 0:47:06- so it took another two weeks. Yeah.- Yeah.
0:47:06 > 0:47:10'So, a little over their original estimate, but with tenants lined up
0:47:10 > 0:47:14'the house will start generating money soon.
0:47:14 > 0:47:18'But will Kavita and Kevin have turned a profit?
0:47:18 > 0:47:22'We invited along two local estate agents to find out.
0:47:22 > 0:47:25'Let's start with the one that visited last time.'
0:47:26 > 0:47:28I think the property is looking good.
0:47:28 > 0:47:31They could have spent a little bit more on the refurb,
0:47:31 > 0:47:33however, they've still got a good potential for rent,
0:47:33 > 0:47:35and they will be able to achieve a good rent.
0:47:35 > 0:47:38The selling points of the property are that it's got a downstairs WC,
0:47:38 > 0:47:40an upstairs bathroom, three good-sized bedrooms,
0:47:40 > 0:47:44a good-sized garden and it's neutral throughout.
0:47:44 > 0:47:48'With a property like this, because it is not the standard construction,
0:47:48 > 0:47:52'we are looking at a reduced value, for the simple reason that
0:47:52 > 0:47:55'it reduces the amount of buyers that are able to buy'
0:47:55 > 0:47:59a property like this, because they can't get a mortgage and, also
0:47:59 > 0:48:02cash buyers are looking for a reduced amount.
0:48:03 > 0:48:05'Sounds like we'd better get those valuations
0:48:05 > 0:48:07'and see if Kavita and Kevin
0:48:07 > 0:48:11'can make a return on their £272,000 investment.
0:48:11 > 0:48:13'Let's start with sales.'
0:48:14 > 0:48:18If this property was of a standard construction,
0:48:18 > 0:48:21you'd probably be looking at a value of around about 350,
0:48:21 > 0:48:23around that sort of price range.
0:48:23 > 0:48:25Because it is construction, and as I've said,
0:48:25 > 0:48:27it's going to affect the value,
0:48:27 > 0:48:31I would probably value the property at around that 250-270 mark.
0:48:31 > 0:48:33I think it has a strong bearing on it.
0:48:33 > 0:48:37Cash buyers are looking for a discounted rate.
0:48:37 > 0:48:42'The other agent suggests a resale valuation of £290,000-£300,000,
0:48:42 > 0:48:45'as he believes that, because of demand in the area,
0:48:45 > 0:48:49'it could fetch that higher price regardless of the structure.'
0:48:49 > 0:48:52Well, we were expecting it not to be very high,
0:48:52 > 0:48:54because it's not a standard construction.
0:48:54 > 0:48:56With the value of the house,
0:48:56 > 0:48:59it's a bit lower than the other,
0:48:59 > 0:49:03but we want to keep it for a couple of years, that's why...
0:49:03 > 0:49:06- Yeah.- For it to pick up in value.
0:49:06 > 0:49:08And then we could...
0:49:08 > 0:49:10Anyway, we're not losing out, so...
0:49:10 > 0:49:14'Kavita seems happy that they are not losing out,
0:49:14 > 0:49:17'as they always intended to rent, and they have tenants lined up.
0:49:17 > 0:49:20'But what kind of rent should they expect?'
0:49:20 > 0:49:23I believe, if this property was to be put on the market
0:49:23 > 0:49:26for rental purposes, it would achieve in the region of
0:49:26 > 0:49:28£1,350-£1,400 per calendar month.
0:49:28 > 0:49:31There is a huge demand for rental properties like this.
0:49:31 > 0:49:36It would probably fetch around £1,450 per calendar month.
0:49:36 > 0:49:40- That is what we were expecting. - Yeah, we were expecting that.
0:49:40 > 0:49:43'Using that top figure of 1,450,
0:49:43 > 0:49:46'that would be a yield of just over 6%.
0:49:46 > 0:49:48'However, Kavita and Kevin
0:49:48 > 0:49:51'bought this with an eye on regeneration of the area,
0:49:51 > 0:49:54'and the eventual capital gains it might make them.
0:49:54 > 0:49:57'And with the possible pitfalls this property had, they've done well.
0:49:57 > 0:50:00'So, two properties under their belt,
0:50:00 > 0:50:02'what would they do differently next time?'
0:50:05 > 0:50:07We are going to make sure that we have
0:50:07 > 0:50:10the legal pack checked over by a solicitor.
0:50:10 > 0:50:13It's worthwhile paying a little bit of money
0:50:13 > 0:50:15- just to not be in this position. - Yeah.
0:50:20 > 0:50:23Let's head back now to the town of Rainham, Kent,
0:50:23 > 0:50:25where I visited this three-bedroom bungalow,
0:50:25 > 0:50:26with a colour scheme that...
0:50:26 > 0:50:29Well, it wasn't to everybody's taste.
0:50:30 > 0:50:34It's very marshmallow-like everywhere, soft powder pink.
0:50:34 > 0:50:36# Well, I'm tickled pink
0:50:36 > 0:50:37# I'm tickled pink
0:50:37 > 0:50:39# I'm feeling blue... #
0:50:39 > 0:50:42I wasn't tickled by the pink, but that's easily sorted.
0:50:42 > 0:50:46But less so the textured ceilings, which were everywhere.
0:50:46 > 0:50:48It all needed modernising,
0:50:48 > 0:50:51but with a guide price of £165,000-£170,000,
0:50:51 > 0:50:54I thought it had bags full of investment potential.
0:50:56 > 0:50:59Long-term friends Simon and Stephen thought so too,
0:50:59 > 0:51:03buying up the bungalow at auction for £179,000 -
0:51:03 > 0:51:07just £1,000 short of their budget on the day. Though, unfortunately,
0:51:07 > 0:51:11that extra £1,000 didn't last very long.
0:51:11 > 0:51:13- Tell me what happened. - We read the legal pack,
0:51:13 > 0:51:15as instructed on Homes Under The Hammer,
0:51:15 > 0:51:17but, unfortunately, we missed
0:51:17 > 0:51:20Section 18, Subsection 2 or something,
0:51:20 > 0:51:22that said we had to pay the vendor's solicitor's fees.
0:51:22 > 0:51:24- Which was?- About £1,000.
0:51:24 > 0:51:27- So, there you go, there's your £1,000 snapped up straightaway. - Yeah.
0:51:27 > 0:51:31But rather than lick their wounds, they plan to crack on with this,
0:51:31 > 0:51:33their first property renovation.
0:51:33 > 0:51:36- The biggest thing I think is the kitchen and bathroom.- Yes.
0:51:36 > 0:51:38We're going to try and keep it looking fresh
0:51:38 > 0:51:40and not too modern, cos, round here,
0:51:40 > 0:51:42most people we have seen are of an age.
0:51:42 > 0:51:44- Yeah, I'd go for something really classic.- Yes.
0:51:44 > 0:51:47That's the word. Classic. Classic rather than fashionable.
0:51:47 > 0:51:49- Yes.- Absolutely.
0:51:49 > 0:51:52So, setting themselves a budget of £12,000
0:51:52 > 0:51:55and aiming to be complete in three months,
0:51:55 > 0:51:58would Simon and Stephen achieve that classic look?
0:51:58 > 0:52:01We returned five months later to see how they got on.
0:52:10 > 0:52:13As you can see, Simon and Steve have ripped out that dated,
0:52:13 > 0:52:15old kitchen and replaced it with these bright
0:52:15 > 0:52:18new units and modern appliances.
0:52:18 > 0:52:20Bang up-to-date, but classic-looking, I'd say.
0:52:20 > 0:52:23As planned, the separate toilet has been knocked through
0:52:23 > 0:52:25to create this generous bathroom.
0:52:25 > 0:52:28They've obviously put a lot of thought into this room,
0:52:28 > 0:52:30making the most of the space in here,
0:52:30 > 0:52:33installing a bathtub and a shower unit.
0:52:33 > 0:52:37Again, like the kitchen, it's been finished to a really high standard.
0:52:40 > 0:52:43The only other structural change was in the hallway,
0:52:43 > 0:52:45where the boys have removed the old partitioning door
0:52:45 > 0:52:48giving this house a much better flow.
0:52:50 > 0:52:51Through into the lounge,
0:52:51 > 0:52:54it's goodbye marshmallow-pink and textured ceilings,
0:52:54 > 0:52:58and hello to neutral colours and smooth surfaces,
0:52:58 > 0:53:01thanks to the endeavours of an experienced plasterer.
0:53:03 > 0:53:06It's more of the same in the three bedrooms -
0:53:06 > 0:53:09replastered, repainted and new carpets.
0:53:09 > 0:53:11The house was in great condition before,
0:53:11 > 0:53:14but these decorative changes have had a dramatic effect.
0:53:14 > 0:53:19Now, outside, the boys have been doing some investigation work.
0:53:19 > 0:53:23They wanted to do a checkup for the towering tree in the front garden,
0:53:23 > 0:53:27which, by the way, Stephen has named Jennifer.
0:53:27 > 0:53:30After a consultation with the tree surgeon
0:53:30 > 0:53:32and the local council's TPO officer,
0:53:32 > 0:53:34they could see no wrong with her and,
0:53:34 > 0:53:37at the grand old age of about 100 years,
0:53:37 > 0:53:39she is actually in great health,
0:53:39 > 0:53:42meaning she's no danger to the property.
0:53:42 > 0:53:45This was Simon and Stephen's first project together
0:53:45 > 0:53:48and, it's fair to say, it's been a steep learning curve.
0:53:48 > 0:53:51Yeah, the bathroom was quite a big project,
0:53:51 > 0:53:53because we had to convert two rooms into one room and, of course,
0:53:53 > 0:53:57that meant the wall in the corridor had to come down.
0:53:57 > 0:54:00So, for the first time ever, we built a stud wall, which was fun.
0:54:00 > 0:54:02- Yup. That's... - Nearly the right size.
0:54:03 > 0:54:06'And the mishaps didn't stop there.'
0:54:07 > 0:54:09Oh, that bath.
0:54:09 > 0:54:12- Erm... Four, five?- That, yeah... That bath has been fitted
0:54:12 > 0:54:15fully fitted in there,
0:54:15 > 0:54:19finished and out again - four times, so...
0:54:19 > 0:54:23This song kept running through my mind - Nothing Is Easy.
0:54:23 > 0:54:24# Nothing is easy
0:54:24 > 0:54:28# Though time gets you worrying, my friend, it's OK... #
0:54:28 > 0:54:30'There you go, Simon, just for you.
0:54:30 > 0:54:33'So, was the kitchen any easier?'
0:54:33 > 0:54:36The oven housing, this one over here...
0:54:36 > 0:54:37- Four times.- Four times,
0:54:37 > 0:54:40fully in, fitted and then...
0:54:40 > 0:54:43- Smug look on our faces and...- Yeah. - "Oh, Steve!"- And then...
0:54:43 > 0:54:46It was, "Oh, Simon!"
0:54:46 > 0:54:48'Yeah, you see, I'm sensing a pattern, here.
0:54:48 > 0:54:52'Never mind - practice does make perfect, as this shows.
0:54:53 > 0:54:57'Simon and Stephen were also very fortunate to get lots of help
0:54:57 > 0:55:00'from friends, family and professionals,
0:55:00 > 0:55:02'so did keeping to that £12,000 budget
0:55:02 > 0:55:05'fall into the "Nothing Is Easy" category?'
0:55:05 > 0:55:07The budget, I think we got in...
0:55:07 > 0:55:11Cos I did a calculation last night and it was about £12,500.
0:55:11 > 0:55:16One of them was stupidity, which we mentioned earlier, which was the...
0:55:16 > 0:55:19having to pay the seller's legal fees, which was a pain.
0:55:19 > 0:55:23And the other over-budget thing was, we went to town on the bathroom,
0:55:23 > 0:55:25so we didn't go for the cheapest bath we could have done.
0:55:25 > 0:55:28- No.- And we've gone for quite a quality bath and a quality shower,
0:55:28 > 0:55:31and that's where the actual money went.
0:55:32 > 0:55:37'That takes their total spend on the property to £191,500.
0:55:39 > 0:55:41'Now, the boys originally set themselves
0:55:41 > 0:55:44'a timescale of three months, but having to fit the renovation in
0:55:44 > 0:55:46'around their busy work schedules,
0:55:46 > 0:55:48'it ended up taking closer to five months,
0:55:48 > 0:55:51'though, time well spent, I'd say.
0:55:55 > 0:55:58'So, will they have made a profit?
0:55:58 > 0:56:00'We invited along
0:56:00 > 0:56:02'two local estate agents to find out.'
0:56:02 > 0:56:04In comparison to how I saw the property before,
0:56:04 > 0:56:05obviously it's a big improvement.
0:56:05 > 0:56:07It needed everything doing to it when we saw it before,
0:56:07 > 0:56:09so, yeah, everything looks brand-new.
0:56:09 > 0:56:12It looks like it's been finished to a good standard.
0:56:12 > 0:56:14In this location, bungalows are very popular,
0:56:14 > 0:56:16on the basis that there is a shortage of them.
0:56:16 > 0:56:17There's not too many about
0:56:17 > 0:56:19where you do get a lot of developers normally go up
0:56:19 > 0:56:22and build up on them, but they've kept this all on one level,
0:56:22 > 0:56:25so it's going to be generally appealing to the older generation.
0:56:25 > 0:56:27I think it does work for the modern living, this property,
0:56:27 > 0:56:29and they've done the layout nicely.
0:56:29 > 0:56:33They've got rid of some of the doors and, I think, you know,
0:56:33 > 0:56:34it's easy to walk round,
0:56:34 > 0:56:36which is what you really want it to be.
0:56:37 > 0:56:41'The agents are impressed with the renovation and think, rental-wise,
0:56:41 > 0:56:46'the bungalow could bring in between £800-£900 per calendar month.
0:56:46 > 0:56:50'Now, that top figure giving a yield of just over 5.5%.
0:56:50 > 0:56:56'But what could their £191,500 investment translate into for
0:56:56 > 0:56:58'the resale market?'
0:56:58 > 0:57:00This property, in the current market,
0:57:00 > 0:57:03I believe will achieve anywhere between £280,000-£300,000.
0:57:03 > 0:57:05I think this property, on the sales market,
0:57:05 > 0:57:09will achieve in the region of £300,000.
0:57:09 > 0:57:11- I need to hold him. - I can buy a leopard!
0:57:13 > 0:57:16'OK, well, the heart wants what the heart wants, I suppose.
0:57:16 > 0:57:20'But will these two be changing their spots by becoming more serious
0:57:20 > 0:57:22'property developers in the future?'
0:57:24 > 0:57:28It has been surprising how we worked well as a double act,
0:57:28 > 0:57:30where somebody comes up with a problem,
0:57:30 > 0:57:33and the other person comes up with the solution,
0:57:33 > 0:57:36and it has been surprising how well that has worked.
0:57:36 > 0:57:38Surprising. Yeah, it's been good, and it...
0:57:38 > 0:57:41- He's only sworn at me once. - Yes.- And it was my fault.
0:57:41 > 0:57:43He deserved everything of it, yes.
0:57:43 > 0:57:46So, yeah, we'll work together and another project is...
0:57:46 > 0:57:48- As soon as we can.- Yeah.
0:57:51 > 0:57:53I hope these stories have given you something to think about.
0:57:53 > 0:57:56Yeah, and I hope you're heading to your next auction right now.
0:57:56 > 0:57:58If not, don't worry,
0:57:58 > 0:58:01cos we'll be back with more Homes Under The Hammer for you next time.
0:58:01 > 0:58:03- Goodbye.- Bye-bye.- Goodbye.