Episode 23

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0:00:02 > 0:00:04Hello. Buying property can be a complicated business

0:00:04 > 0:00:07and it can sometimes feel like forever just getting the deal done.

0:00:07 > 0:00:10Yes, I know one way you can make it easier and quicker.

0:00:10 > 0:00:12Yes, if you want a speedy property purchase,

0:00:12 > 0:00:15why don't you head down to your local property auction?

0:00:41 > 0:00:44Property developing might sound simple.

0:00:44 > 0:00:48You buy somewhere, you do it up, and you sell it for a profit.

0:00:48 > 0:00:51But we all know there's a bit more to it than that.

0:00:51 > 0:00:54Yes, there's always pitfalls awaiting the unwary.

0:00:54 > 0:00:57So let's see if today's purchasers get it right.

0:00:59 > 0:01:02I'm giving you the unvarnished truth about this

0:01:02 > 0:01:04flat in Pegswood, Northumberland.

0:01:06 > 0:01:07Yes, that is a wardrobe.

0:01:08 > 0:01:12At this three-bed in Swadlincote, Derbyshire, I'm trying hard

0:01:12 > 0:01:15not to beat about the bush.

0:01:15 > 0:01:19HE GRUNTS

0:01:19 > 0:01:21And in Chatham, Kent, I'm hoping

0:01:21 > 0:01:25no-one has papered over the cracks in this three-bed terrace.

0:01:25 > 0:01:28Look. Look at the different wallpapers. It's amazing.

0:01:30 > 0:01:32All these properties have been sold at auction.

0:01:32 > 0:01:35We'll find out who bought them and what they paid for them

0:01:35 > 0:01:37when they went under the hammer.

0:01:37 > 0:01:38You all done?

0:01:41 > 0:01:45I'm in Pegswood, a small former mining village near the town

0:01:45 > 0:01:49of Morpeth in England's most northerly county, Northumberland.

0:01:51 > 0:01:54Although mining has long since stopped in the village,

0:01:54 > 0:01:58this stunning sculpture, known locally as Robin of Pegswood,

0:01:58 > 0:02:00celebrates its mining heritage.

0:02:02 > 0:02:06The property I'm here to see is in this quiet little cul-de-sac,

0:02:06 > 0:02:08which is always great for family living.

0:02:08 > 0:02:11One of the issues is - parking can be a problem.

0:02:11 > 0:02:14But it's not a problem for the property I'm here to see.

0:02:14 > 0:02:16And here it is.

0:02:16 > 0:02:19We have off-street parking, which is always a bonus.

0:02:19 > 0:02:21It's a one-bedroom flat on the ground floor

0:02:21 > 0:02:26and has a guide price of in between £25,000 and £35,000.

0:02:27 > 0:02:29Yes, that is a wardrobe.

0:02:29 > 0:02:33It's definitely not a walk-in wardrobe. It's more of a

0:02:33 > 0:02:35walk outside to your wardrobe.

0:02:35 > 0:02:37It's not a feature that's going to catch on.

0:02:37 > 0:02:41# So I'm redoing my wardrobe I've had enough

0:02:41 > 0:02:47# I'm going to fill up my closet with brand-new love. #

0:02:49 > 0:02:52OK, what has this flat got to offer?

0:02:52 > 0:02:55You're straight into a narrow hallway.

0:02:55 > 0:02:58And here we have the bathroom, which is a little bit small.

0:02:58 > 0:03:01But it's to be expected, it is a one-bed flat.

0:03:01 > 0:03:05You could possibly salvage this if you wanted to rent it out.

0:03:05 > 0:03:10But it's not the size or the bathroom suite, it's the colour.

0:03:10 > 0:03:12It's in a nice shade of chocolate.

0:03:12 > 0:03:14- # Come on! - A choco-choco- Clap-clap

0:03:14 > 0:03:16- # A choco-choco- Clap-clap

0:03:16 > 0:03:18- # Everybody say chocolate - Here we go!

0:03:18 > 0:03:20- # A choco-choco- Clap-clap

0:03:20 > 0:03:21- # A choco-choco- Clap-clap

0:03:21 > 0:03:25- # Everybody say chocolate - Come on! #

0:03:25 > 0:03:27Anyway, what else have we got?

0:03:27 > 0:03:30Down the hallway, into the bedroom.

0:03:30 > 0:03:31Which is an OK size.

0:03:31 > 0:03:34It's got a nice big window there. Double-glazed window as well.

0:03:34 > 0:03:37Central heating. Yes, not bad at all.

0:03:37 > 0:03:38Not a bad start.

0:03:38 > 0:03:42The decor needs a bit of updating on these rooms,

0:03:42 > 0:03:44but so far, there's nothing that's worrying me.

0:03:44 > 0:03:47But what about the rest of the property?

0:03:48 > 0:03:50OK, through into here.

0:03:50 > 0:03:55To the lounge-kitchen area. It's not a bad size at all for a one-bed.

0:03:55 > 0:03:59And straightaway, you can see there's a bow in that ceiling there

0:03:59 > 0:04:00over the kitchen.

0:04:00 > 0:04:04And a telltale sign there with a bucket catching the water.

0:04:04 > 0:04:08So there's been quite a severe leak in here somewhere.

0:04:08 > 0:04:10Kitchen looks a little bit dated.

0:04:10 > 0:04:13So I personally would want to put a nice brand-new kitchen in,

0:04:13 > 0:04:15brighten this place up,

0:04:15 > 0:04:18and get some new tiles as well, cos they've been painted black.

0:04:18 > 0:04:20Could have a nice little kitchen in there if you get it right.

0:04:20 > 0:04:22And the lounge area, again,

0:04:22 > 0:04:25there's a little bit of water on the floor there as well.

0:04:25 > 0:04:28So get a professional in to find out where that water's coming from.

0:04:28 > 0:04:31Over here, you've got some big patio doors

0:04:31 > 0:04:33out into a courtyard area.

0:04:33 > 0:04:35It's not a bad size at all.

0:04:35 > 0:04:38And it's quite well-proportioned. I like it, actually.

0:04:40 > 0:04:43When I say I like it, I'm not a massive fan of the stripes,

0:04:43 > 0:04:44I've got to say.

0:04:44 > 0:04:46But the outside courtyard -

0:04:46 > 0:04:49although split between upper and lower flats and in need of a

0:04:49 > 0:04:52bit of a spruce up - is well worth a whirl

0:04:52 > 0:04:55at a guide price of £25,000 to £35,000.

0:04:58 > 0:05:00"So what's the catch?" I hear you ask.

0:05:00 > 0:05:03Well, it's a 66-year lease, which is just under what most

0:05:03 > 0:05:07lender's minimum requirements of 70 years remaining is.

0:05:07 > 0:05:11This one might be for someone that's got a bit of cash in their pocket.

0:05:13 > 0:05:16A local estate agent came along and gave us her thoughts.

0:05:19 > 0:05:21First impressions of the property are

0:05:21 > 0:05:23it is quite a generously-proportioned

0:05:23 > 0:05:25one-bedroom ground floor flat.

0:05:25 > 0:05:28It could benefit from a little bit of updating,

0:05:28 > 0:05:30mostly to the kitchen and bathroom areas.

0:05:30 > 0:05:34I would hope that a budget of about £5,000 would be enough to

0:05:34 > 0:05:37smarten it up throughout and replace the kitchen

0:05:37 > 0:05:39and bathroom to a standard that would be acceptable.

0:05:39 > 0:05:42The agent thinks, in the current market,

0:05:42 > 0:05:44renting this property out is the best option.

0:05:44 > 0:05:47So what kind of figures could we be looking at?

0:05:47 > 0:05:50I would imagine that once the works are completed,

0:05:50 > 0:05:52you would be looking at an estimated rental value

0:05:52 > 0:05:56of £350 to £375 per calendar month.

0:05:56 > 0:05:59That could offer a good yield,

0:05:59 > 0:06:02if you get it in that guide price range.

0:06:02 > 0:06:03What about sales?

0:06:04 > 0:06:07The sales value for the property is likely to

0:06:07 > 0:06:11be around £55,000 to £60,000.

0:06:11 > 0:06:14It would be reliant on the lease being extended

0:06:14 > 0:06:16on the property as well.

0:06:18 > 0:06:22This a nice little flat, but you have got that issue of that leak.

0:06:22 > 0:06:25So I'd get that sorted out as soon as possible.

0:06:25 > 0:06:28If it were mine, I'd want to put a new bathroom in and a new kitchen.

0:06:28 > 0:06:30And I think the rest is just cosmetic.

0:06:30 > 0:06:33Let's see who made that winning bid when it went under the hammer.

0:06:33 > 0:06:34One-bedroom ground floor flat.

0:06:34 > 0:06:36This is one of two. This is the ground floor.

0:06:36 > 0:06:39Got a telephone bid on it. Who's going to start me?

0:06:39 > 0:06:40First bid of the night.

0:06:40 > 0:06:42At 25 then. Need a bid.

0:06:42 > 0:06:44At £25,000. Am I bid 20?

0:06:44 > 0:06:46It's not where we start, it's where we end up.

0:06:46 > 0:06:50At 20,000. 20 here seated. At 20 I'm bid. In ones then.

0:06:50 > 0:06:52At £20,000. Are we done?

0:06:52 > 0:06:55At £20,000 then. First time.

0:06:55 > 0:06:58Second time. Stop them. It's too cheap.

0:06:58 > 0:07:01At £20,000 then. New bidder at 21. 22.

0:07:01 > 0:07:0322 bid. 23. Where are we? 23.

0:07:03 > 0:07:0524.

0:07:05 > 0:07:0625. 26.

0:07:06 > 0:07:0827. 28.

0:07:08 > 0:07:1129. 30.

0:07:11 > 0:07:1331. Shake of the head here at 30.

0:07:13 > 0:07:16At £30,000. With you, madam, been with me all the way.

0:07:16 > 0:07:18I'll take a half if it helps.

0:07:18 > 0:07:21I'll take 250. I'll take owt, really.

0:07:22 > 0:07:24Selling away then at £30,000.

0:07:24 > 0:07:26All done. All out.

0:07:27 > 0:07:28Well done, madam.

0:07:28 > 0:07:30The successful bidder getting a property was Kim,

0:07:30 > 0:07:33who was accompanied by her wife, Jane.

0:07:34 > 0:07:39Kim and Jane paid £30,000, right in the middle of the guide price range.

0:07:39 > 0:07:42But it seems they didn't really set out to buy this flat.

0:07:42 > 0:07:45- Kim, nice to meet you.- Nice to meet you.- Jane, nice to meet you.

0:07:45 > 0:07:47- Hi, thanks.- Congratulations to the both of you. BOTH:- Thank you.

0:07:47 > 0:07:51Tell us about how you came about buying this place.

0:07:51 > 0:07:53Well, we were trying to buy next-door.

0:07:53 > 0:07:57And we came up with so many problems along the way.

0:07:57 > 0:08:01And Jane mentioned that there was this one coming up at auction.

0:08:01 > 0:08:05And I thought, "Ooh. If we don't get the other one in time,

0:08:05 > 0:08:09"then we'll just see if we can get this at the auction."

0:08:09 > 0:08:12So we went along and we did get it.

0:08:12 > 0:08:15- You got lucky.- We got very lucky. - You got lucky, yes.

0:08:15 > 0:08:18A little birdie told me that you've saved a few quid as well.

0:08:18 > 0:08:22Absolutely. The flat that we were trying to buy,

0:08:22 > 0:08:25the price that was accepted was £66,000.

0:08:25 > 0:08:29- You see? Being clever, you see? - Yes.- Very clever.

0:08:29 > 0:08:32And what was it about this flat that you liked, Jane?

0:08:32 > 0:08:37For me, it's about location. I've recently, nearly a year ago now,

0:08:37 > 0:08:42started a new job in Morpeth and I've been renting round the corner.

0:08:42 > 0:08:45And we've been looking for something more permanent for me.

0:08:45 > 0:08:49Jane will stay here Monday to Friday for her job

0:08:49 > 0:08:51with a drinks company that's based in Morpeth.

0:08:51 > 0:08:54But it's a four-hour drive from where they both live.

0:08:56 > 0:09:00- We're from Leicester. - You're both from Leicester?

0:09:00 > 0:09:02- My home town!- That's right.- Yes.

0:09:02 > 0:09:03Are you Leicester fans?

0:09:03 > 0:09:05- No.- No. - THEY LAUGH

0:09:05 > 0:09:06That doesn't work.

0:09:06 > 0:09:09How come? Who do you support? Who do you support? Who's your team?

0:09:09 > 0:09:11- Newcastle.- Newcastle? How about you?

0:09:11 > 0:09:12I support Man United.

0:09:12 > 0:09:16Oh, my gosh. Everywhere you go, United fans, aren't there?

0:09:16 > 0:09:18There is indeed.

0:09:18 > 0:09:21I can't believe they're not Foxes fans.

0:09:21 > 0:09:23But they have certainly been bright-eyed

0:09:23 > 0:09:26and bushy-tailed about getting this flat.

0:09:26 > 0:09:29If the deal for the one nearby hadn't fallen through,

0:09:29 > 0:09:32they would have paid an extra 36 grand.

0:09:32 > 0:09:37This was definitely a case of where it was worth going to the auction.

0:09:37 > 0:09:41But did they bag a bargain because of that short 66-year lease?

0:09:42 > 0:09:44We're quite happy with the length of lease.

0:09:44 > 0:09:47I mean, our intentions are for Jane to have the

0:09:47 > 0:09:49flat as long as she needs it.

0:09:49 > 0:09:51I think you've got to be in somewhere for two years

0:09:51 > 0:09:53- anyway before you can extend. - Mm-hmm.

0:09:53 > 0:09:55But then I'd be looking to extend it

0:09:55 > 0:09:58and keep the flat on longer than Jane needs it, probably.

0:09:58 > 0:09:59Good on you.

0:09:59 > 0:10:02And what are you going to do to this place now you've got it?

0:10:02 > 0:10:07Well, it needs a new kitchen. A new bathroom.

0:10:07 > 0:10:09You're not keeping the chocolate bathroom?!

0:10:09 > 0:10:11- It's lovely. - It's a delight, isn't it?

0:10:11 > 0:10:14It's got to be the most horrible bathroom I've ever seen.

0:10:14 > 0:10:17Well, that's a bit harsh.

0:10:17 > 0:10:21Unfortunately, I've seen a lot worse than this chocolate suite.

0:10:22 > 0:10:24# Sweet like chocolate

0:10:24 > 0:10:27# Ah-ah

0:10:27 > 0:10:29# Da da da da da da da... #

0:10:29 > 0:10:32And they have also investigated the leak,

0:10:32 > 0:10:35which it turns out is coming from the flat above

0:10:35 > 0:10:36and can easily be fixed.

0:10:36 > 0:10:41Although they will need to replace the floor damaged by the water.

0:10:41 > 0:10:45They also have to repair the patio doors that led to the garden, which

0:10:45 > 0:10:49reminds me about that dodgy-looking brick wall I spotted earlier.

0:10:49 > 0:10:53They're hoping that all the work can cost no more than eight grand.

0:10:55 > 0:10:58Do me a favour, would you get that wall checked outside as well?

0:10:58 > 0:11:02Yes, absolutely. Cos it needs to keep the dogs safe, you see.

0:11:02 > 0:11:04Oh, you've got dogs?! What dogs have you got?

0:11:04 > 0:11:07We've got a Springer spaniel and a Cocker spaniel.

0:11:07 > 0:11:09Our cameraman's got a spaniel.

0:11:09 > 0:11:11He says it's an absolute nutter.

0:11:11 > 0:11:14- Yeah.- Is yours?- Yes. - One's just like me, so yes.

0:11:14 > 0:11:17- They've got energy to burn, haven't they?- Yes.- Yeah.

0:11:17 > 0:11:20How long is all the work going to take you?

0:11:20 > 0:11:22- Six to eight weeks.- OK. - Yeah, six to eight weeks.

0:11:22 > 0:11:24Will you get involved with doing the work yourselves

0:11:24 > 0:11:27- or are people going to...?- I have a chisel in the cupboard right now.

0:11:27 > 0:11:28Ready to go.

0:11:28 > 0:11:32Keep your chisel where it's nice and safe, just for the moment.

0:11:32 > 0:11:34Are you getting involved as well, Jane?

0:11:34 > 0:11:37Yeah, we're obviously going to have a plumber to fit the bathroom

0:11:37 > 0:11:39and a joiner to come and fit the kitchen.

0:11:39 > 0:11:42But the decoration and everything else we're going to take care of.

0:11:42 > 0:11:45We won't be going for top-notch.

0:11:45 > 0:11:48But something a little bit more robust that looks nice.

0:11:48 > 0:11:51We'll rent it on at that point. With my career,

0:11:51 > 0:11:56- I never know where I'm going to be technically for a few years.- OK.

0:11:56 > 0:11:59So it's not forever, this. It is literally just a stop-gap.

0:11:59 > 0:12:02But it's still part of Kim's portfolio.

0:12:02 > 0:12:05- So it'll be a good investment. - You've done well.

0:12:05 > 0:12:07- You've saved yourself a few quid.- Yeah.

0:12:07 > 0:12:08Got yourself a nice little flat.

0:12:08 > 0:12:11- Yes.- Are you happy, Jane? - I am. I'm very happy.- See?

0:12:11 > 0:12:13You've done something good there, Kim. Well done.

0:12:13 > 0:12:14Made her happy. Yay!

0:12:14 > 0:12:17- Well done. Kim, I wish you all the best.- Thank you very much.

0:12:17 > 0:12:19- Jane...- Thank you.- Good luck.

0:12:19 > 0:12:21So, Kim and Jane got lucky.

0:12:21 > 0:12:25By going to the auction house, they saved themselves a lot of money.

0:12:25 > 0:12:28It just goes to show there's still bargains to be had.

0:12:28 > 0:12:30But will their luck hold out?

0:12:30 > 0:12:32And will they come in on time and on budget?

0:12:32 > 0:12:35You can find out how they get on later in the programme.

0:12:40 > 0:12:44Swandlincote, in Derbyshire, boasts a proud heritage of industrial

0:12:44 > 0:12:48beginnings in the coal mining, pottery and brick-laying industries.

0:12:48 > 0:12:51But nowadays, it's better known as a good place in the region

0:12:51 > 0:12:53to bag a bargain.

0:12:53 > 0:12:57With relatively low property prices and good local state schools,

0:12:57 > 0:13:00it's beginning to attract young families back into the area.

0:13:00 > 0:13:03So, will the property I'm here to see fit into that category?

0:13:08 > 0:13:13Well, if proximity to a local pub is high on your list of priorities

0:13:13 > 0:13:16when it comes to looking for houses, then the property I'm

0:13:16 > 0:13:20here to see is definitely going to tick that particular box for you.

0:13:20 > 0:13:23Because, literally, you are, what, 30 metres away from it.

0:13:23 > 0:13:27What am I here to see then? It's a three-bed mid-terrace.

0:13:27 > 0:13:29Guide price - £50,000-plus.

0:13:30 > 0:13:32Looks quite nice on the outside.

0:13:32 > 0:13:33Nice bit of brick.

0:13:33 > 0:13:35Let's have a look inside.

0:13:35 > 0:13:36Ah.

0:13:38 > 0:13:40Not quite as cutesy-wootsy

0:13:40 > 0:13:42the moment you come through the front door.

0:13:42 > 0:13:45What is that all about?!

0:13:45 > 0:13:46Get rid of that.

0:13:46 > 0:13:49Straight into your front sitting room. Gas fire.

0:13:49 > 0:13:51It feels a bit wibbly-wobbly.

0:13:51 > 0:13:57Clearly some issues with damp. That is... Hey, wow! That's wet.

0:13:57 > 0:13:59Why is that wet? It's like an internal wall.

0:13:59 > 0:14:01What is going on there?

0:14:01 > 0:14:03Polystyrene ceilings. Get rid of them.

0:14:03 > 0:14:06Through to your second sitting room.

0:14:06 > 0:14:09Now, straightaway I'm thinking, "Get rid of that wall!"

0:14:09 > 0:14:13Open the whole thing out to create a really nice open space.

0:14:13 > 0:14:15There's a few cutesy-wootsy things.

0:14:15 > 0:14:18We like that window there and these doors are rather pretty.

0:14:18 > 0:14:20Stairs up to your bedrooms there.

0:14:20 > 0:14:21And then...

0:14:21 > 0:14:24It sort of goes all downhill.

0:14:24 > 0:14:27Actually literally, because the floor is all over the place.

0:14:27 > 0:14:30This little area here...

0:14:30 > 0:14:33Goodness knows why, but you've got a door on each side.

0:14:33 > 0:14:35This is kind of like an extension thing

0:14:35 > 0:14:40which houses the kitchen, which is fairly eurgh.

0:14:40 > 0:14:42And onwards to a toilet.

0:14:42 > 0:14:44But that's it.

0:14:44 > 0:14:47But that is actually the only toilet in the property.

0:14:47 > 0:14:49HE SIGHS

0:14:49 > 0:14:53Why couldn't it live up to what it looked like on the outside?

0:14:53 > 0:14:59# Can't judge a book by looking at the cover... #

0:14:59 > 0:15:03Yes, as is so often the case on Homes Under The Hammer,

0:15:03 > 0:15:07I'm greeted by a charming-looking little house on the street,

0:15:07 > 0:15:10only to find who knows what on the inside.

0:15:10 > 0:15:13In this case, a pokey kitchen extension

0:15:13 > 0:15:16and a solitary ground floor loo.

0:15:16 > 0:15:20But the strange ground floor layout here really begs the question -

0:15:20 > 0:15:22what's the upstairs like?

0:15:22 > 0:15:25So, upstairs, no landing to speak of.

0:15:25 > 0:15:28Just straight into the three bedrooms. One there.

0:15:28 > 0:15:29Smaller one.

0:15:29 > 0:15:32Reasonable-sized one towards the front of the property there.

0:15:32 > 0:15:34Another reasonable-sized one towards the back.

0:15:34 > 0:15:36So we like the sizes. We just don't like this layout.

0:15:36 > 0:15:39And it gets worse because the only bathroom,

0:15:39 > 0:15:43as in a place where you could wash, is situated here,

0:15:43 > 0:15:45off this third bedroom.

0:15:45 > 0:15:47It doesn't have a loo in it. As I mentioned before,

0:15:47 > 0:15:50the one downstairs is the only toilet in the property.

0:15:50 > 0:15:54So there definitely needs to be some major re-jigging up here

0:15:54 > 0:15:58and downstairs. Apart from that, it's perfect.

0:15:59 > 0:16:01Always the optimist, me, eh?

0:16:01 > 0:16:03Ah... No.

0:16:03 > 0:16:06This house is going to need a lot of work

0:16:06 > 0:16:08if the buyer is going to want to appeal to today's market.

0:16:08 > 0:16:12And typically, people like toilets in their bathrooms.

0:16:13 > 0:16:15Time for a peek outside.

0:16:16 > 0:16:19Well, at the very back of the property it gets even weirder.

0:16:19 > 0:16:23Not only do you have two doors to this little extension,

0:16:23 > 0:16:26but the garden scenario is dead odd.

0:16:26 > 0:16:30Yes, this bit you own. Then you come out through the back gate here

0:16:30 > 0:16:34to this bit of land here, which is actually co-owned.

0:16:34 > 0:16:36You sort of half own it, I guess.

0:16:36 > 0:16:37It's a communal bit.

0:16:37 > 0:16:40So where's the garden? Is that it? No, no, no.

0:16:40 > 0:16:42Your actual garden... Da-da-da.

0:16:42 > 0:16:43Eurgh. Ugh.

0:16:43 > 0:16:46HE GRUNTS

0:16:46 > 0:16:48..is through here.

0:16:48 > 0:16:50So you get this bit, you get that bit. It's quite a nice garden.

0:16:50 > 0:16:53But you've got that bit there you have to go over.

0:16:53 > 0:16:55As I said, weird.

0:16:56 > 0:17:01So layout issues on the ground floor, first floor and the garden.

0:17:01 > 0:17:05Let's hope the buyer has a good imagination and, dare I say it,

0:17:05 > 0:17:07a good chunk of money to spend

0:17:07 > 0:17:10on this peculiar three-bedroom property.

0:17:10 > 0:17:13So, what are the possibilities?

0:17:13 > 0:17:17We asked an agent from the auctioneers who sold it

0:17:17 > 0:17:19what he reckoned needed doing.

0:17:19 > 0:17:21Having had a look around the property,

0:17:21 > 0:17:23I would say that it really does require some TLC

0:17:23 > 0:17:25to bring it back into use.

0:17:25 > 0:17:26The layout needs to be considered

0:17:26 > 0:17:29as well. It doesn't really work at the moment.

0:17:29 > 0:17:31And I think that that's a major factor in getting it

0:17:31 > 0:17:32back into good order.

0:17:32 > 0:17:35Some thought needs to be put into how you can create separate

0:17:35 > 0:17:37bedroom space with access to the bathroom

0:17:37 > 0:17:39without passing through another bedroom.

0:17:39 > 0:17:42I would certainly look at the ground floor layout as well.

0:17:42 > 0:17:45Again, I don't think it really works for modern occupation.

0:17:45 > 0:17:47We've got two quite small reception rooms.

0:17:47 > 0:17:50A small, narrow kitchen space here,

0:17:50 > 0:17:52with two doors leading off to the toilet.

0:17:52 > 0:17:56I think it could be reconfigured to provide better use of that space.

0:17:58 > 0:18:01So, if the layout was re-jigged and the property renovated,

0:18:01 > 0:18:03how much could it be worth?

0:18:04 > 0:18:06Once renovated,

0:18:06 > 0:18:09I believe this property would sell for £85,000 to £90,000

0:18:09 > 0:18:12and would rent for £525 per calendar month.

0:18:13 > 0:18:17Well, if you're after a property with a whole checklist of kind

0:18:17 > 0:18:21of interesting issues to resolve, well, this is certainly the one.

0:18:21 > 0:18:25However, at least you're very close to the local pub so you can go

0:18:25 > 0:18:28and mull over the problems over a nice pint.

0:18:28 > 0:18:29Who bought it? Let's find out

0:18:29 > 0:18:31when it went under the hammer.

0:18:32 > 0:18:33Lot number 42.

0:18:33 > 0:18:35Start me at 55.

0:18:35 > 0:18:3750,000 then on the guide price

0:18:37 > 0:18:38to put it into the bidding.

0:18:38 > 0:18:4150. Thank you. £50,000 is the opening bid.

0:18:41 > 0:18:4351? 51.

0:18:43 > 0:18:45At 52.

0:18:45 > 0:18:4653.

0:18:46 > 0:18:4754.

0:18:47 > 0:18:4955.

0:18:49 > 0:18:5056. I've got you.

0:18:50 > 0:18:51At 56.

0:18:51 > 0:18:5357? 57.

0:18:53 > 0:18:5557. 58.

0:18:55 > 0:18:5758. 59.

0:18:57 > 0:18:5859, it's here to go.

0:18:58 > 0:19:0060,000.

0:19:00 > 0:19:02At 60. 61, sir?

0:19:02 > 0:19:0360.5.

0:19:03 > 0:19:05At £60,500.

0:19:05 > 0:19:0761. I've got you together.

0:19:07 > 0:19:1061. 500? 500.

0:19:10 > 0:19:1161.5.

0:19:11 > 0:19:1462? 62.

0:19:14 > 0:19:1562.5.

0:19:15 > 0:19:1763.

0:19:17 > 0:19:1863.5.

0:19:18 > 0:19:2064.

0:19:20 > 0:19:2264.5.

0:19:22 > 0:19:2465.

0:19:24 > 0:19:2665. Is that it?

0:19:26 > 0:19:29At £65,000. It's going to go.

0:19:29 > 0:19:31At 65. Going once, twice...

0:19:31 > 0:19:32Third opportunity.

0:19:34 > 0:19:36Sold at £65,000. Thank you.

0:19:36 > 0:19:41And with the successful bid of £65,000 was Mark.

0:19:41 > 0:19:44Mark has bought this lot as a project to share

0:19:44 > 0:19:46with his brother-in-law, Pete.

0:19:46 > 0:19:49This will be their debut as developers together.

0:19:49 > 0:19:52I met them to find out about the house,

0:19:52 > 0:19:55and also, where have they been soaking up the sun?

0:19:55 > 0:19:59# If you steal my sunshine... #

0:19:59 > 0:20:02- Mark, Pete, great to meet you both. - And you.- And you.

0:20:02 > 0:20:05- How are you?- Fine.- Now that's not a Derby tan.- Definitely not.

0:20:05 > 0:20:07Where was that from?

0:20:07 > 0:20:09- Tenerife last week.- Right.

0:20:09 > 0:20:12So you went on holiday after going to the auction?

0:20:12 > 0:20:14After the auction, yeah. And completion date.

0:20:14 > 0:20:18And hopefully to try and get it down while we were away.

0:20:18 > 0:20:21- Great.- So, took a bit of doing. - Right.

0:20:21 > 0:20:23So how did you sort of broach the idea of working together?

0:20:23 > 0:20:25How did that all come about?

0:20:25 > 0:20:29I did a house about 12, 18 months ago.

0:20:29 > 0:20:32And then Pete's obviously come in and said,

0:20:32 > 0:20:34"I wouldn't mind doing it with you..."

0:20:34 > 0:20:38- Right.- "..the next one." So we plan to do a few, hopefully.

0:20:38 > 0:20:41Depending on how this one goes. We'll see where we go from there.

0:20:41 > 0:20:44- Helps with the finances. It's a good way to split it.- Yeah.

0:20:44 > 0:20:46- So, it was just you at the auction?- Yeah.

0:20:46 > 0:20:48And how was that, Pete, leaving it in the hands of...?

0:20:48 > 0:20:50Every faith in him. Every faith in him.

0:20:50 > 0:20:52And were you happy with what you paid?

0:20:52 > 0:20:57- Yeah.- Yeah?- Yeah, we had got a price we'd agreed that we would go up to.

0:20:57 > 0:20:59- And it was under the budget. - Oh, great.

0:20:59 > 0:21:02- So...- Result.- Yeah.

0:21:02 > 0:21:05Mark and Pete have got the first thing right.

0:21:05 > 0:21:07Never pay over your budget.

0:21:07 > 0:21:10So now they have got it, where will they start?

0:21:11 > 0:21:16Kitchen, bathroom, damp. It's got quite a lot of damp in it.

0:21:16 > 0:21:19So, obviously take it all back to brick.

0:21:19 > 0:21:24All the way downstairs. And upstairs, there's no toilet.

0:21:24 > 0:21:29So we're thinking we're going to put a corridor through

0:21:29 > 0:21:33the bedroom that goes through to where the shower room is.

0:21:33 > 0:21:37- Otherwise it's a bit... - It's not ideal, is it?

0:21:37 > 0:21:40- No, not at all. - And keep the loo downstairs here?

0:21:40 > 0:21:44Yeah, potentially. We're just debating whether

0:21:44 > 0:21:47we actually get rid of the toilet downstairs

0:21:47 > 0:21:53and make that a utility room. Or leave it as a toilet downstairs.

0:21:53 > 0:21:56Right. And how will you decide?

0:21:56 > 0:21:58- THEY LAUGH - It'll be a debate.

0:21:58 > 0:22:01What about taking the wall in-between the two main

0:22:01 > 0:22:03downstairs rooms out?

0:22:03 > 0:22:06I thought that would be a nicer idea to sort of open it all up.

0:22:06 > 0:22:08- So did I.- Well done.

0:22:08 > 0:22:10- Did you agree?- Yes.- Oh, good.

0:22:10 > 0:22:14- Yeah, in fact, we've got a builder coming round tomorrow.- Tomorrow.

0:22:14 > 0:22:18- Oh, wow.- To come and look at it and tell us how far to take it back

0:22:18 > 0:22:21- and whatever.- Right.- And open this up.- That's a great idea.

0:22:21 > 0:22:24Well, hopefully they'll continue to be in agreement for the rest

0:22:24 > 0:22:26of the renovation.

0:22:26 > 0:22:28Pete and Mark aim to have the place finished

0:22:28 > 0:22:31and back on the market within 12 weeks.

0:22:31 > 0:22:35And on a conservative budget of £10,000.

0:22:35 > 0:22:38They'll be hoping to keep the cost to a minimum by doing

0:22:38 > 0:22:39much of the work themselves.

0:22:39 > 0:22:41It's an obvious question,

0:22:41 > 0:22:44but when family members join to do things, there's always

0:22:44 > 0:22:48a teensy-weensy issue if you do something which annoys each other.

0:22:48 > 0:22:51Cos it makes Christmases rather sticky.

0:22:51 > 0:22:53Do you reckon you're going to get on?

0:22:53 > 0:22:57This will be the tester. You know. The first one will be the tester.

0:22:57 > 0:22:59- Well, listen, congratulations to you both.- Thank you.

0:22:59 > 0:23:02Good luck with it. We'll look forward to seeing how you get on.

0:23:02 > 0:23:03- Thanks very much.- Thank you.

0:23:05 > 0:23:10So, the first joint venture for brother-in-laws Pete and Mark.

0:23:10 > 0:23:14I'm a little bit concerned that they might have slightly underestimated

0:23:14 > 0:23:17the amount of effort it's going to take to sort this place out.

0:23:17 > 0:23:19But at least if it all goes horribly wrong,

0:23:19 > 0:23:22it's not far to go to drown their sorrows.

0:23:22 > 0:23:25You can find out how they get on later in the show.

0:23:26 > 0:23:29Still to come in Chatham, Kent, I hope

0:23:29 > 0:23:34I have much more than the keys to success in this end-terrace.

0:23:34 > 0:23:36A door here that's locked.

0:23:38 > 0:23:41And have Mark and Pete had an eye-opener at their three-bed

0:23:41 > 0:23:42house in Derbyshire?

0:23:42 > 0:23:45We came into it, I would say, not totally blind,

0:23:45 > 0:23:46but a little bit blind.

0:23:48 > 0:23:51But first, we're back in Pegswood,

0:23:51 > 0:23:53an ex-mining town in Northumberland...

0:23:54 > 0:23:57..where I saw this ground floor flat.

0:23:57 > 0:24:00And despite it only having three rooms, it had a few issues.

0:24:02 > 0:24:07Firstly, it had a short-term lease of only 66 years.

0:24:07 > 0:24:09Then the colour of that bathroom suite.

0:24:09 > 0:24:12It's not really me.

0:24:12 > 0:24:16Uh, you could possibly salvage this if you wanted to rent it out.

0:24:16 > 0:24:20But it's not the size or the bathroom suite, it's the colour.

0:24:20 > 0:24:23It's in a nice shade of chocolate.

0:24:23 > 0:24:24I'd want that changing.

0:24:24 > 0:24:28But I spotted a bigger issue in the kitchen.

0:24:28 > 0:24:31Straightaway, we can see there's a bow in that ceiling there

0:24:31 > 0:24:34over the kitchen. And a telltale sign there

0:24:34 > 0:24:35with a bucket catching the water.

0:24:35 > 0:24:38So there's been quite a severe leak in here.

0:24:39 > 0:24:43Kim and her wife, Jane, weren't put off by this

0:24:43 > 0:24:46and both made the four-hour drive from their home in Leicester

0:24:46 > 0:24:49to buy this flat for £30,000.

0:24:49 > 0:24:52It's both a temporary place for Jane to live while she works

0:24:52 > 0:24:56in Morpeth during the week and a future rental investment for Kim.

0:24:57 > 0:25:00Kim is actually really keen to get stuck in

0:25:00 > 0:25:02and get started with the work here.

0:25:02 > 0:25:05A bit too keen actually, if you ask me.

0:25:05 > 0:25:07I have a chisel in the cupboard right now.

0:25:07 > 0:25:09Ready to go, have you?

0:25:09 > 0:25:12Keep your chisel nice and safe, just for the moment.

0:25:12 > 0:25:14And are you getting involved as well, Jane?

0:25:14 > 0:25:17Yeah, we're obviously going to have a plumber to fit the bathroom

0:25:17 > 0:25:19and a joiner to come and fit the kitchen,

0:25:19 > 0:25:22but the decoration and everything else we're going to take care of.

0:25:22 > 0:25:25Kim and Jane planned to get right on it

0:25:25 > 0:25:28and have the work done in six to eight weeks.

0:25:28 > 0:25:30Three months later and we are back.

0:25:30 > 0:25:33I hope Kim has put that chisel to good use

0:25:33 > 0:25:36and got rid of those terrible tiles in the bathroom.

0:25:41 > 0:25:43That's more like it.

0:25:43 > 0:25:47This fresh, white colour scheme works much better.

0:25:47 > 0:25:50And the kitchen has also been given a makeover.

0:25:57 > 0:25:59That cracked ceiling has been fixed

0:25:59 > 0:26:02and those horrible painted tiles have gone.

0:26:02 > 0:26:04There's new flooring in the living room

0:26:04 > 0:26:07to replace the old water-damaged one.

0:26:08 > 0:26:11And new doors that lead out to the garden,

0:26:11 > 0:26:14where they got rid of that unsafe wall and put up a nice, new fence

0:26:14 > 0:26:18which means Maisie and Tiffin can run around safely.

0:26:18 > 0:26:20Have a look, they're loving it.

0:26:23 > 0:26:25Let's head back inside

0:26:25 > 0:26:28as I want to find out how Kim and Jane got rid of that leak.

0:26:30 > 0:26:31When we took the floor up,

0:26:31 > 0:26:35we could see that the water had sort of remained under it for some time.

0:26:35 > 0:26:37So it was all smelly.

0:26:37 > 0:26:42There was mould coming over between the kitchen and the lounge.

0:26:42 > 0:26:44It was just nasty.

0:26:44 > 0:26:46Getting all of the ReBoard done

0:26:46 > 0:26:48and the plaster was quite a quick process.

0:26:48 > 0:26:50But you have to wait for it to dry off before you can do

0:26:50 > 0:26:51anything else.

0:26:51 > 0:26:54Everything else had to stop while that was doing.

0:26:54 > 0:26:56The kitchen units at the bottom were ruined.

0:26:56 > 0:26:59So it had obviously been leaking for quite some time.

0:26:59 > 0:27:02And when we stripped the wall down

0:27:02 > 0:27:05we could see that there had been significant leaks from the bathroom

0:27:05 > 0:27:07into the kitchen.

0:27:07 > 0:27:10So we had to redo all of that as well, didn't we?

0:27:10 > 0:27:12We did, yeah. But it wasn't expensive.

0:27:12 > 0:27:13It was just time consuming.

0:27:15 > 0:27:17To make matters worse,

0:27:17 > 0:27:20they discovered that the wiring in the bathroom was unsafe

0:27:20 > 0:27:23and the cabling to the electric shower was on the wall

0:27:23 > 0:27:25and running down over the bath.

0:27:25 > 0:27:28So they got the professionals in to get that sorted.

0:27:28 > 0:27:29Easy enough, right?

0:27:31 > 0:27:35So, the tradesmen, we found that they could almost pick

0:27:35 > 0:27:37and choose their jobs. So they can be quite selective.

0:27:37 > 0:27:40So when they came to have a look at the bathroom, two of them ran away.

0:27:40 > 0:27:45- But then luckily, we got lucky with a local joiner...- Called Dave.

0:27:45 > 0:27:46Yeah.

0:27:46 > 0:27:50..who helped us connect with other tradesmen and did a fantastic job.

0:27:50 > 0:27:51- Really good.- Yeah.- Really good.

0:27:51 > 0:27:54- It would have been a lot harder without him.- Yeah.

0:27:54 > 0:27:56Good on you, Dave.

0:27:56 > 0:28:00Others ran away, but Dave stood firm and helped Kim and Jane out.

0:28:02 > 0:28:04They weren't just planning on sitting on the bench, though.

0:28:04 > 0:28:06Between them, they changed light fittings

0:28:06 > 0:28:10and did a lot of the cleaning, painting and tiling themselves.

0:28:10 > 0:28:12Not a bad job either, may I say.

0:28:14 > 0:28:16Could Jane have, dare I say it, enjoyed herself?

0:28:18 > 0:28:21- You found it quite good cos it was a stress reliever.- Mm.

0:28:21 > 0:28:24Stress buster after work, even though it was long hours for you.

0:28:24 > 0:28:28- Mm.- It just took your mind completely off it, didn't it?

0:28:28 > 0:28:29It did, yeah.

0:28:29 > 0:28:32I found it very therapeutic, the manual elements of it.

0:28:32 > 0:28:36And it did... It was great, actually.

0:28:36 > 0:28:38It was really good for me mentally and physically.

0:28:38 > 0:28:42- Yeah.- Although the tiles might not have been so mentally stimulating.

0:28:42 > 0:28:45- No. Bit more... - Challenging.- Challenging.

0:28:45 > 0:28:48But, you know, I don't think there's anything nice when you're doing

0:28:48 > 0:28:51DIY than when you set tiles and then you grout them and polish them.

0:28:51 > 0:28:52And they just look phenomenal.

0:28:54 > 0:28:59I'm glad Jane is pleased. But is Kim happy with the spend here?

0:28:59 > 0:29:02After all, it is her long-term investment.

0:29:02 > 0:29:05And the plan was to spend eight grand on all the work.

0:29:06 > 0:29:10I did a tally of the budget just a couple of days ago

0:29:10 > 0:29:15and it was standing at just over £5,000. £5,050.

0:29:15 > 0:29:19That includes fees. So I'm quite happy.

0:29:20 > 0:29:22Three grand under budget then, eh?

0:29:22 > 0:29:24Not bad at all.

0:29:24 > 0:29:26I'll forgive you for being a few weeks over that

0:29:26 > 0:29:28two-month timescale then.

0:29:28 > 0:29:32So that brings our total spend here to £35,000.

0:29:32 > 0:29:34And, of course, 50 quid.

0:29:36 > 0:29:39So let's find out if that was money well spent.

0:29:39 > 0:29:43We've invited along two agents to get their thoughts on the flat.

0:29:45 > 0:29:48The property has been made to look modern.

0:29:48 > 0:29:50It's bright, it's neutral most of the way through, which is

0:29:50 > 0:29:52what appeals to buyers.

0:29:52 > 0:29:55The main selling points are the fact that it is in a popular area

0:29:55 > 0:29:57and having an enclosed garden

0:29:57 > 0:30:00and also off-street parking facilities as well.

0:30:00 > 0:30:03Kim would like to rent the flat out for a number of years

0:30:03 > 0:30:05once Jane is no longer using it.

0:30:05 > 0:30:10So what kind of figures could she get back on that £35,000 investment?

0:30:11 > 0:30:13On the rental market, traditionally,

0:30:13 > 0:30:18this type of property is achieving around £350 per calendar month.

0:30:18 > 0:30:21On the rental market, I would expect the property to

0:30:21 > 0:30:25achieve between £350 and £375 per calendar month.

0:30:25 > 0:30:27That's really good.

0:30:27 > 0:30:29It's probably what... It's slightly more than we thought.

0:30:29 > 0:30:33Yeah, we thought it was probably going to be about 325 to 350.

0:30:33 > 0:30:37- So, 375, yeah, it's good.- Yes, it's really good.- Pleased with that.

0:30:37 > 0:30:41Hopefully, they will also be pleased with the sales figures.

0:30:41 > 0:30:46Both agents said that this would be in between £55,000 and £57,000,

0:30:46 > 0:30:49which would give a profit of at least £20,000 less taxes

0:30:49 > 0:30:51and fees, of course.

0:30:53 > 0:30:57- I'm really pleased with that.- Yeah. - It means that Jane has done good.

0:30:57 > 0:31:01- It means Kim's done good.- Oh, yeah, sorry, yeah. Kim's done good.

0:31:03 > 0:31:06Smiles all round them. But what's next for these two?

0:31:08 > 0:31:12- I think for us, it's to find our next opportunity.- Mm.

0:31:12 > 0:31:15- And enjoy it as much as we enjoyed this.- Yeah.

0:31:15 > 0:31:19And keep growing our portfolio. So it's good.

0:31:24 > 0:31:28Today, I'm in one of the Medway towns in the South East of England,

0:31:28 > 0:31:30in the county of Kent.

0:31:30 > 0:31:32There used to be a naval dockyard here on the river

0:31:32 > 0:31:35and Charles Dickens once lived here too.

0:31:35 > 0:31:37Yep, I'm in the historic town of Chatham.

0:31:37 > 0:31:41So I have great expectations about the property I'm here to see,

0:31:41 > 0:31:42even in the rain.

0:31:42 > 0:31:46Although, it is a bit of a steep climb up this hill to get there.

0:31:46 > 0:31:48No gym membership needed for whoever bought this one.

0:31:48 > 0:31:50It's a three-bed end-of-terrace

0:31:50 > 0:31:54and it had a guide price of £75,000-plus.

0:31:54 > 0:31:56Some big windows to the front.

0:31:56 > 0:31:59But will it be bright and airy on the inside?

0:31:59 > 0:32:01'Spot the superstitious one.

0:32:01 > 0:32:04'Never open a brolly on the inside of the house.'

0:32:04 > 0:32:06Well, it's drier on the inside.

0:32:07 > 0:32:10But it's certainly not bright and airy, is it?

0:32:10 > 0:32:11My goodness!

0:32:11 > 0:32:16Dirt, dust and debris are the three Ds that sprung to mind there.

0:32:16 > 0:32:18Yep, it's in a bit of a state.

0:32:18 > 0:32:21You can see, look, somebody has just taken this back to bare brick.

0:32:21 > 0:32:24There is rubble on the floor, it's dusty.

0:32:24 > 0:32:27But if you are very clever and you see beyond that, you have got

0:32:27 > 0:32:31lovely big windows to the front, a really nice square-shaped room.

0:32:31 > 0:32:34And I can imagine, with a property like this,

0:32:34 > 0:32:37you could certainly inject a little bit of character to the

0:32:37 > 0:32:40staircase. You've got the room at the back, very similar.

0:32:40 > 0:32:43Nice sort of fireplace area over there.

0:32:43 > 0:32:45But properties like this, they really intrigue me

0:32:45 > 0:32:48because you can just see past history.

0:32:48 > 0:32:51Look, look at the different wallpapers. It's amazing.

0:32:51 > 0:32:54You've got wires hanging down, there is no ceiling.

0:32:54 > 0:32:57Gosh, there is just electrics everywhere.

0:32:57 > 0:33:00A door here that's locked.

0:33:00 > 0:33:04But I know this door leads to what's round here.

0:33:04 > 0:33:06And it is absolutely pouring outside.

0:33:06 > 0:33:09But if you can see, there is a little room in there.

0:33:09 > 0:33:12And at the back of that room there is a little toilet.

0:33:12 > 0:33:15So that goes through to that area.

0:33:15 > 0:33:17And that is the garden.

0:33:17 > 0:33:19I mean, that there is it.

0:33:19 > 0:33:22Not what the eye can take you to see beyond that.

0:33:22 > 0:33:25Literally, this little bit of space here is the garden.

0:33:25 > 0:33:28So there is no kitchen, no bathroom and no garden.

0:33:29 > 0:33:32Yeah, I know they say less is more,

0:33:32 > 0:33:35but this is taking minimalism to a whole new level.

0:33:44 > 0:33:47Eventually, we got into the rear extension which, as I said,

0:33:47 > 0:33:49has a toilet.

0:33:49 > 0:33:53Unfortunately, not connected to its plumbing.

0:33:53 > 0:33:54Back to the central property,

0:33:54 > 0:34:00the stairwell is adorned with our old nemesis, polystyrene tiles.

0:34:00 > 0:34:03But on the left coming up is the master bedroom,

0:34:03 > 0:34:05which is a decent size.

0:34:05 > 0:34:08And I don't think it will be light work to get this shipshape.

0:34:15 > 0:34:19Across the landing, bedroom two is also well-proportioned.

0:34:19 > 0:34:21But bedroom three leads off here,

0:34:21 > 0:34:23so it has no independent access.

0:34:30 > 0:34:34There's a cellar too, which is quite large and seems damp free.

0:34:34 > 0:34:38But funding a purchase like this can be problematic.

0:34:38 > 0:34:41Now, if you are thinking of buying a property that needs renovation,

0:34:41 > 0:34:45hah, like this, there is something you need to be aware of.

0:34:45 > 0:34:49You won't be able to get a mortgage unless lenders deem it habitable.

0:34:49 > 0:34:52That means the property should be watertight with the roof in

0:34:52 > 0:34:58good repair, it must have access to running water and mains electricity.

0:34:58 > 0:35:01And a big uh-uh in the box for this property, well, it needs

0:35:01 > 0:35:06to have a basic kitchen and a functional indoor bathroom in place.

0:35:06 > 0:35:08I think it's safe to say this house

0:35:08 > 0:35:11will have to be a cash purchase only.

0:35:11 > 0:35:13And this is definitely something to take into account

0:35:13 > 0:35:17when you are deciding how big a renovation project to take on.

0:35:17 > 0:35:20Wondering what the local estate agent would advise?

0:35:20 > 0:35:22Well, we are about to find out

0:35:22 > 0:35:26as we've invited this one along to give us some advice and values.

0:35:27 > 0:35:29The problem with this particular road is,

0:35:29 > 0:35:32and it's like Chatham itself, it's very hilly.

0:35:32 > 0:35:35And you have to be fairly fit to go up and down this road

0:35:35 > 0:35:37and have a car perhaps with good brakes.

0:35:37 > 0:35:41But generally, you know, it takes you up to Gillingham

0:35:41 > 0:35:42where you've got your hospital,

0:35:42 > 0:35:45or down to the Luton Road area where you've got a lot of shops.

0:35:45 > 0:35:50What's the best way to proceed with this slightly unusual layout?

0:35:50 > 0:35:53I think what I'd be inclined to do with this property,

0:35:53 > 0:35:57it would be very easy to just turn the dining room

0:35:57 > 0:36:01downstairs into a kitchen and then put a bathroom on the back.

0:36:01 > 0:36:04But I think it would be far better and give it much more space

0:36:04 > 0:36:08if you left it as a lounge-dining room and kitchen downstairs.

0:36:08 > 0:36:11Upstairs here, put a corridor through

0:36:11 > 0:36:14and make this third bedroom the bathroom instead,

0:36:14 > 0:36:16which would make it really nice.

0:36:16 > 0:36:18I don't think it's going to make too much difference

0:36:18 > 0:36:20on the values between two- and three-bedroom

0:36:20 > 0:36:22with this particular property

0:36:22 > 0:36:25because the third bedroom comes off the second bedroom.

0:36:25 > 0:36:28Had it been three separate bedrooms, then there would have been

0:36:28 > 0:36:30considerable difference.

0:36:31 > 0:36:34The only way to get a separate bedroom would be to add

0:36:34 > 0:36:37a corridor to access this third bedroom.

0:36:37 > 0:36:41But that would greatly compromise the size of the second bedroom,

0:36:41 > 0:36:42which is not ideal.

0:36:42 > 0:36:44So, with the bedrooms as they are,

0:36:44 > 0:36:47how much could this house fetch in today's market?

0:36:49 > 0:36:52I think once this property is renovated,

0:36:52 > 0:36:59we would be looking somewhere in the region of £130,000 to £135,000.

0:36:59 > 0:37:03Well, unfortunately, my great expectations have been dashed.

0:37:03 > 0:37:06This is definitely more of a bleak house at the moment.

0:37:06 > 0:37:09Still, you do get a spacious shell of a property with

0:37:09 > 0:37:12plenty of potential to add value here.

0:37:12 > 0:37:15Starting by putting in a kitchen and bathroom.

0:37:15 > 0:37:18So, who could see past its current condition?

0:37:18 > 0:37:20Let's head to the auction and find out.

0:37:20 > 0:37:22Lot 14 we go to, which is

0:37:22 > 0:37:26an end-terrace three-bedroom property for improvement.

0:37:26 > 0:37:27Start me where you will.

0:37:27 > 0:37:30I'm not going below 70. £70,000 bid I've got.

0:37:30 > 0:37:3273 I will take.

0:37:32 > 0:37:3573. 73. And five.

0:37:35 > 0:37:3975. 75. 78.

0:37:39 > 0:37:4178. And 80.

0:37:41 > 0:37:43At 80. And two.

0:37:43 > 0:37:4682.

0:37:46 > 0:37:4881. 82.

0:37:48 > 0:37:5082.

0:37:50 > 0:37:5283. 84 in a fresh place.

0:37:52 > 0:37:5485 with you, sir, again.

0:37:54 > 0:37:58The £75,000 guide price is soon a distant memory.

0:37:58 > 0:38:02We rejoin the bidding at £98,000.

0:38:02 > 0:38:0598 there. 99 I'm looking for.

0:38:05 > 0:38:08It's to the gentleman standing on my left by the door

0:38:08 > 0:38:10at 98,000 for the first time.

0:38:10 > 0:38:1398,000 for the second time. Unless I get another one.

0:38:13 > 0:38:1599 I'm bid.

0:38:15 > 0:38:16Are you going to go up to 100?

0:38:16 > 0:38:21£100,000 I've got somewhere else. Thank you. 101 now, sir.

0:38:21 > 0:38:24No? At 100,000. First and last bid maybe.

0:38:24 > 0:38:26£100,000 I've got.

0:38:26 > 0:38:28One from any of the other three of you?

0:38:28 > 0:38:31If not, at £100,000 I'm bid for the first time.

0:38:31 > 0:38:34£100,000 bid for the second time.

0:38:34 > 0:38:37It's being sold. It's just in the gate of the room there.

0:38:37 > 0:38:40Third and final time at £100,000.

0:38:40 > 0:38:43- Are we all done? Are we all done? - BANGS GAVEL

0:38:43 > 0:38:44£100,000. One bid only, sir.

0:38:44 > 0:38:46And your number, please?

0:38:46 > 0:38:48The lucky one bid securing the property

0:38:48 > 0:38:50came from security manager Herman.

0:38:50 > 0:38:55# Something tells me I'm into something good

0:38:55 > 0:38:58# Something tells me I'm into something... #

0:38:58 > 0:39:02He bought with his wife, Nadia, who was at work on auction day.

0:39:02 > 0:39:05They paid £100,000 for this hilly location,

0:39:05 > 0:39:09where I met Herman to talk about the work he'd already done

0:39:09 > 0:39:10and what else he had planned.

0:39:12 > 0:39:14- Herman, congratulations.- Thank you.

0:39:14 > 0:39:16So this is the property you won on auction day.

0:39:16 > 0:39:18Why did you want to buy this?

0:39:18 > 0:39:21Well, I was looking at various different properties

0:39:21 > 0:39:23and, in the end, this one was in my reach.

0:39:23 > 0:39:24Before that, I went to three or four

0:39:24 > 0:39:27different auctions and looked at loads of properties.

0:39:27 > 0:39:30Did my research. In the end, this was within my budget.

0:39:30 > 0:39:32Where is the potential? What do you want to do with it?

0:39:32 > 0:39:34I really like all the space.

0:39:34 > 0:39:36I'm going to do absolutely everything.

0:39:36 > 0:39:38All the ceilings are going to come down.

0:39:38 > 0:39:41Re-plaster the walls. New kitchen. New bathroom.

0:39:41 > 0:39:44Basically, it's just an outer shell and I'll redo everything.

0:39:44 > 0:39:47What I want to know is, how are you going to add value?

0:39:47 > 0:39:51Well, I always think a new kitchen and space, like I said before,

0:39:51 > 0:39:54- really adds value to a property. - Mm-hmm.- That's what they say, the

0:39:54 > 0:39:57kitchen sells properties. So the kitchen is very important.

0:39:57 > 0:39:58Then obviously the bathroom

0:39:58 > 0:40:00next-door is going to be a very important room.

0:40:00 > 0:40:02So I'll just keep the layout as it is upstairs

0:40:02 > 0:40:05and then have the bathroom in the extension at the back.

0:40:05 > 0:40:07Yeah, that's what you've got to realise,

0:40:07 > 0:40:09where is the value there to have the third extra bedroom?

0:40:09 > 0:40:11But who is going to access that bedroom

0:40:11 > 0:40:13and how are you going to get across?

0:40:13 > 0:40:15The third bedroom would mostly just be for a child.

0:40:15 > 0:40:19So it would probably be a young family, someone with small kids,

0:40:19 > 0:40:20it would probably suit them most.

0:40:20 > 0:40:23So how much value can you realistically add to this?

0:40:23 > 0:40:25I mean, what would you like to market it for?

0:40:25 > 0:40:29I was thinking of maybe selling it in the region of 140 to 150,

0:40:29 > 0:40:32depending on what the market does in the next six months.

0:40:32 > 0:40:36- Mm-hmm.- So that would maybe be a little bit overestimating it.

0:40:36 > 0:40:39But I'm pretty confident I can make at least a good 20 grand.

0:40:39 > 0:40:42How long do you think it's going to take you to get this shipshape?

0:40:42 > 0:40:46I was hoping maybe three to four months, but even if it does go a

0:40:46 > 0:40:49little bit further, I don't mind. Time is not really an issue for me.

0:40:49 > 0:40:51I don't have a lot of time,

0:40:51 > 0:40:54so if and when I get the chance to come out here, I will.

0:40:54 > 0:40:58The reason Herman doesn't have a lot of time is because

0:40:58 > 0:41:01he and Nadia have a two-year-old son, Alex.

0:41:01 > 0:41:04If that wasn't enough to keep them occupied,

0:41:04 > 0:41:07Nadia is now six months pregnant with their second son.

0:41:07 > 0:41:12So it's perhaps a good thing Herman is not worried about his timescale.

0:41:14 > 0:41:16Where are you going to put that kitchen?

0:41:16 > 0:41:19- You are standing in it.- Eh! - This here is the kitchen.- Fantastic

0:41:19 > 0:41:22- space.- Yeah, it's very spacious. Again, like all the other rooms.

0:41:22 > 0:41:24So it's going to be an open-plan kitchen

0:41:24 > 0:41:27- with a little dining room area. - That's going to be fabulous.

0:41:27 > 0:41:30- As you walk in, that will be the lounge, the sitting area.- Yeah.

0:41:30 > 0:41:33Kitchen at the back. And then right through this secret door here,

0:41:33 > 0:41:35- there will then be the bathroom. - The bathroom.

0:41:35 > 0:41:37And at the back of the bathroom,

0:41:37 > 0:41:38there is a little utility room as well,

0:41:38 > 0:41:41where the boiler is going to be, washing machine etc.

0:41:41 > 0:41:43How much of the work are you going to do? Come on then,

0:41:43 > 0:41:46you obviously can't do the electrics and the plumbing.

0:41:46 > 0:41:48- I would say the majority of it. - Really?

0:41:48 > 0:41:50Probably about 75%. Maybe 80%.

0:41:50 > 0:41:53Are you a plasterer? Can you sand floors?

0:41:53 > 0:41:54Yeah, sanding is not an issue.

0:41:54 > 0:41:57I can re-do the stairwell. Like I said, plasterboard.

0:41:57 > 0:41:59I might need a little bit of help with plastering,

0:41:59 > 0:42:02- but I'm going to give it a go. - How much are you going to spend?

0:42:02 > 0:42:05- What is your budget for the work? - My budget would be,

0:42:05 > 0:42:07I was hoping initially, between ten and 15 grand.

0:42:07 > 0:42:11However, ten grand was a bit... You know, that's not enough.

0:42:11 > 0:42:13- So maybe 15.- Oh! - HE LAUGHS

0:42:13 > 0:42:16I don't think that's enough. Do you think you can do it on 15?

0:42:16 > 0:42:18I mean, it would be amazing to see.

0:42:18 > 0:42:20I would be happy to do it in a budget of 15.

0:42:20 > 0:42:23But I do have some spare cash if needs be.

0:42:23 > 0:42:26I would like to sell it on. We have another project in mind.

0:42:26 > 0:42:30So I would like to use the capital for the next project.

0:42:30 > 0:42:33However, if I can't get the price I want, I'll still rent it out.

0:42:33 > 0:42:34I did look at the rental market

0:42:34 > 0:42:37and it's quite good in comparison to what you get in other places.

0:42:37 > 0:42:39Herman, it's been fabulous meeting you

0:42:39 > 0:42:41and I'm so excited to see what you do.

0:42:41 > 0:42:43And I'm really intrigued to see if you can bring it in

0:42:43 > 0:42:46- within a £15,000 budget. - Thank you very much.

0:42:46 > 0:42:49I am going to do my utmost best to stick to my budget.

0:42:49 > 0:42:51- Good stuff. - So we'll see how it goes.

0:42:51 > 0:42:53I look forward to seeing the project when it's finished.

0:42:53 > 0:42:55- Thank you.- Thank you.

0:42:55 > 0:42:58Well, Herman certainly has his work cut out

0:42:58 > 0:43:01with his latest and his biggest renovation project,

0:43:01 > 0:43:05especially as he plans to do most of the labour himself.

0:43:05 > 0:43:10Now, will he really complete all of it with £15,000?

0:43:10 > 0:43:11There's a lot to do here.

0:43:11 > 0:43:15Join me later on in the programme to find out if Herman does have to

0:43:15 > 0:43:18struggle through some hard times during this project.

0:43:21 > 0:43:24We followed the journey of one of our buyers,

0:43:24 > 0:43:25what about the other two?

0:43:25 > 0:43:27Yes, did they have the Midas touch

0:43:27 > 0:43:30- or did everything crumble around them?- Let's find out.

0:43:32 > 0:43:34We're heading back to Swadlincote, in Derbyshire,

0:43:34 > 0:43:37to see a three-bed mid-terrace property that I thought was

0:43:37 > 0:43:39pretty cute from the outside.

0:43:40 > 0:43:44Inside however, it was a different story.

0:43:44 > 0:43:45Not quite as cutesy-wootsy

0:43:45 > 0:43:48the moment you come through the front door.

0:43:48 > 0:43:49What is that all about?!

0:43:51 > 0:43:54It got worse. There was quite a bit of damp.

0:43:54 > 0:43:56The only loo was downstairs

0:43:56 > 0:43:58whilst the only bathroom was upstairs

0:43:58 > 0:44:00and was situation off the second bedroom.

0:44:00 > 0:44:03But the third bedroom can only be accessed off that.

0:44:03 > 0:44:06Yep. It was a real layout nightmare.

0:44:10 > 0:44:12HE SIGHS

0:44:12 > 0:44:16Why couldn't it live up to what it looked like on the outside?

0:44:17 > 0:44:20That didn't put everyone off, though, as Mark

0:44:20 > 0:44:24and his brother-in-law, Pete, paid £65,000 for this at auction

0:44:24 > 0:44:27and decided that this was the right property

0:44:27 > 0:44:29for their first venture together.

0:44:29 > 0:44:32It's quite a tricky property for the first go,

0:44:32 > 0:44:36so how were they going to sort the layout issues out?

0:44:36 > 0:44:40We're thinking we're going to put a corridor through the bedroom

0:44:40 > 0:44:43that goes through to where the shower room is.

0:44:43 > 0:44:46- And keep the loo downstairs here? - Yeah, potentially.

0:44:46 > 0:44:48We're just debating whether

0:44:48 > 0:44:51we actually get rid of the toilet downstairs

0:44:51 > 0:44:58and make that a utility room. Or leave it as a toilet downstairs.

0:44:58 > 0:45:01- Right.- And how will you decide?

0:45:01 > 0:45:03- THEY LAUGH - It'll be a debate.

0:45:05 > 0:45:08Mark and Pete said it would take 12 weeks to get the house

0:45:08 > 0:45:11back on the market, as they plan on selling it on

0:45:11 > 0:45:14and starting a new project with their potential profits.

0:45:14 > 0:45:17So it's time for us to find out how they've got on.

0:45:17 > 0:45:23We're back 15 weeks later and it's as pretty as ever on the outside,

0:45:23 > 0:45:25but does it match up on the inside?

0:45:35 > 0:45:37This looks so much better.

0:45:37 > 0:45:40But there's more to this renovation than good looks.

0:45:40 > 0:45:43Mark and Pete have put in a new damp course,

0:45:43 > 0:45:44rewired and replastered.

0:45:44 > 0:45:48But have they resolved the configuration conundrum upstairs?

0:45:50 > 0:45:54Oh, yes! They have. There's a smart new shower room.

0:46:03 > 0:46:06And that third room now has its own access.

0:46:06 > 0:46:09While some space has been pinched from the bedroom,

0:46:09 > 0:46:11I think it's well worth it.

0:46:11 > 0:46:15Through newly double-glazed windows, we can see the garden has been

0:46:15 > 0:46:17given a makeover too.

0:46:17 > 0:46:21It's so much neater now, and you'd be daft not to sprout legs

0:46:21 > 0:46:25and take a short walk on over to enjoy it.

0:46:27 > 0:46:29Now I am loving the changes,

0:46:29 > 0:46:32but I seem to remember that we all agreed that the two separate

0:46:32 > 0:46:35reception rooms should have been put together into one.

0:46:35 > 0:46:36So what's happened there?

0:46:38 > 0:46:41We were going to knock this wall out here.

0:46:41 > 0:46:44But when we called a builder in,

0:46:44 > 0:46:48he said we'd have to have planning permission to get it done.

0:46:48 > 0:46:49Then the cost of it.

0:46:49 > 0:46:55So we thought we'd just leave a bit of an archway, an open doorway,

0:46:55 > 0:46:56not put a door on there.

0:46:56 > 0:47:00Widen the door a little bit, you know, with taking the frame out.

0:47:00 > 0:47:04So it made it nice, flowing through from one room to the second.

0:47:04 > 0:47:08We didn't think we were going to get any benefit from it.

0:47:09 > 0:47:12Mark and Pete have weighed this one up,

0:47:12 > 0:47:16and they've decided that spending time on planning permission

0:47:16 > 0:47:19and building regs would cost them money and more.

0:47:19 > 0:47:22Given their aim was a quick turnaround, that makes sense.

0:47:22 > 0:47:24So who did the work?

0:47:26 > 0:47:30We had a specialist in to do the central heating,

0:47:30 > 0:47:33the plastering, and the electrical side of it.

0:47:33 > 0:47:37Everything else that you see has been done by ourselves.

0:47:37 > 0:47:41I think the biggest challenge was the floor in the middle room.

0:47:41 > 0:47:46We didn't realise when we bought it where all the damp was coming from.

0:47:46 > 0:47:50As I say, we had specialists in and they advised us

0:47:50 > 0:47:52to rip all the floor up.

0:47:52 > 0:47:57Which we did. You know, we did it ourselves and it was hard work.

0:47:57 > 0:47:59But nothing's phased us.

0:47:59 > 0:48:02Pete was in charge of managing the money for this project.

0:48:02 > 0:48:05So has he managed to bring it in under budget?

0:48:07 > 0:48:11We set out to spend 10,000,

0:48:11 > 0:48:13with a contingency of five.

0:48:13 > 0:48:21We've actually come, I think, to the middle. Cos it's £13,467...

0:48:21 > 0:48:22and 40p.

0:48:22 > 0:48:24Well, look after the pennies

0:48:24 > 0:48:26and the pounds will look after themselves, eh?

0:48:26 > 0:48:30I think that's a good spend considering the amount of work

0:48:30 > 0:48:32that was needed here.

0:48:32 > 0:48:35How are Mark and Pete at time management, though?

0:48:35 > 0:48:39We are a little bit late at coming back to see the finished article

0:48:39 > 0:48:41when they thought it would take 12 weeks.

0:48:42 > 0:48:44It's been about 14, 15 weeks.

0:48:44 > 0:48:48I think it was just not realising first off how much work

0:48:48 > 0:48:50did want doing to it.

0:48:50 > 0:48:53We came into it, I would say, not totally blind,

0:48:53 > 0:48:55but a little bit blind.

0:48:55 > 0:48:59It pushed us over by three weeks or whatever, so not too bad.

0:49:01 > 0:49:04I think they've done a really good job.

0:49:04 > 0:49:08But what do two local estate agents think of it?

0:49:08 > 0:49:09Let's find out.

0:49:11 > 0:49:17Well, first impression is - pretty cool, very good, very good.

0:49:17 > 0:49:20It basically says, it's that neutral that says, "Come in and live in me."

0:49:20 > 0:49:21You know?

0:49:21 > 0:49:24I think the main selling point, for me, of a property like this,

0:49:24 > 0:49:27in this location, are its neutral decoration,

0:49:27 > 0:49:30modern kitchen, modern bathroom. It's nice and warm.

0:49:30 > 0:49:33Central heating. PVC double glazing. I think it's absolutely superb.

0:49:35 > 0:49:37Very positive feedback there.

0:49:37 > 0:49:39But does it mean a good resell value,

0:49:39 > 0:49:42which is what Pete and Mark are after?

0:49:42 > 0:49:46They've spent nearly £78,500 here.

0:49:46 > 0:49:49In the current market, now the property has been renovated,

0:49:49 > 0:49:51I would anticipate a sale being achieved

0:49:51 > 0:49:53somewhere in the region of £110,000.

0:49:53 > 0:49:54I believe,

0:49:54 > 0:49:59because of the way that this is presented in such an immaculate

0:49:59 > 0:50:04way, that the seller could market this for as high as £118,500.

0:50:04 > 0:50:08Yeah, I'd be pleased with that. You know. When we came into it,

0:50:08 > 0:50:12we were planning on somewhere not quite there.

0:50:12 > 0:50:17- Not towards the top end. But, yeah, it's a good valuation.- Yeah.

0:50:17 > 0:50:19Very good, I think.

0:50:19 > 0:50:21It is very good.

0:50:21 > 0:50:26That top valuation could mean a potential pre-tax profit of £40,000,

0:50:26 > 0:50:29which for a first project is great.

0:50:29 > 0:50:30This will certainly give them

0:50:30 > 0:50:33enough capital to get on with project number two.

0:50:33 > 0:50:37So, what advice would these successful novices pass on?

0:50:39 > 0:50:42Have a go at it. You know?

0:50:42 > 0:50:45It is hard work, but it can be enjoyable as well.

0:50:45 > 0:50:47It's a good experience.

0:50:47 > 0:50:51And if you can turn it round and do it well, have a go.

0:50:54 > 0:50:56Welcome back to Chatham, in Kent,

0:50:56 > 0:50:59where we're here to see what's happened with this three-bed

0:50:59 > 0:51:02end-terrace that didn't quite deliver on the promise

0:51:02 > 0:51:03of the outside.

0:51:03 > 0:51:05Yep, it's in a bit of a state.

0:51:05 > 0:51:08You can see, look, somebody has just taken this back to bare brick.

0:51:08 > 0:51:11There is rubble on the floor, it's dusty.

0:51:11 > 0:51:14But if you are very clever and you see beyond that, you have got

0:51:14 > 0:51:18lovely big windows to the front, a really nice square-shaped room.

0:51:18 > 0:51:20And I can imagine with a property like this,

0:51:20 > 0:51:24you could certainly inject a little bit of character.

0:51:24 > 0:51:26Yes, it also needed an injection of cash.

0:51:26 > 0:51:29This shop conversion was missing everything,

0:51:29 > 0:51:31including the kitchen sink.

0:51:31 > 0:51:33With no working kitchen or bathroom,

0:51:33 > 0:51:37mortgage lenders would deem it non-habitable.

0:51:37 > 0:51:39So, cash required only for this one.

0:51:39 > 0:51:44The buyer was Herman, a security manager, who paid 100 grand.

0:51:44 > 0:51:48And he seemed pretty laid back that he could do this job himself.

0:51:51 > 0:51:53Are you a plasterer? Can you sand floors?

0:51:53 > 0:51:56Yeah, sanding is not an issue. I can re-do the stairwell. Plasterboard.

0:51:56 > 0:51:58I might need a little bit of help with plastering,

0:51:58 > 0:52:01- but I'm going to give it a go. - How much are you going to spend?

0:52:01 > 0:52:02What is your budget for the work?

0:52:02 > 0:52:05I was hoping initially between ten and 15 grand.

0:52:05 > 0:52:08However, ten grand was a bit... You know, that's not enough.

0:52:08 > 0:52:09So maybe 15.

0:52:09 > 0:52:12Oh! I don't think that's enough!

0:52:12 > 0:52:16Herman certainly had enough on his plate.

0:52:16 > 0:52:19His wife, Nadia, was expecting their second son.

0:52:19 > 0:52:22So even though he'd hoped to do the work in three to four months' time,

0:52:22 > 0:52:25he wasn't in a rush, which is a good thing

0:52:25 > 0:52:29as we're back ten months later to see how he's got on.

0:52:31 > 0:52:36Well, the sun's out and it's certainly brighter inside.

0:52:36 > 0:52:38Before, it was just a shell.

0:52:38 > 0:52:42And now there's a lovely, big, family-size dining-kitchen,

0:52:42 > 0:52:45and there's more changes upstairs.

0:52:46 > 0:52:49Although, I have to admit, looking around the house,

0:52:49 > 0:52:52I can see quite a few jobs still to be completed.

0:52:55 > 0:52:59But Herman thinks they should all be complete in a few weeks.

0:53:00 > 0:53:03# Give me just a little more time... #

0:53:03 > 0:53:06We'll give Herman a bit more time and head off to see what he's

0:53:06 > 0:53:10done with the unplumbed toilet at the back of the house.

0:53:11 > 0:53:15While I was initially locked out of this area when I came to see it,

0:53:15 > 0:53:19I think we may have a different access issue this time.

0:53:19 > 0:53:21A door for access to the outside? Herman?

0:53:24 > 0:53:27This was just an empty room and I decided to have the bathroom here.

0:53:27 > 0:53:29I wanted to make it a bit of a feature room.

0:53:29 > 0:53:33That's why it's quite big and it's got all the open spaces.

0:53:33 > 0:53:36That's why I tiled it all the way up to the ceiling.

0:53:36 > 0:53:37Just to give it that wow effect.

0:53:37 > 0:53:40And in the end, it came out brilliantly.

0:53:40 > 0:53:42I think this is probably my favourite room in the house.

0:53:42 > 0:53:46And I really like it. I think it makes an amazing family bathroom.

0:53:46 > 0:53:48Well, yes, it certainly takes

0:53:48 > 0:53:51Jack and Jill bathrooms to a whole new level.

0:53:51 > 0:53:54I would have considered putting up a wall to create a little

0:53:54 > 0:53:57hallway to the back door. I mean, it's not very handy

0:53:57 > 0:54:00if someone wants to come in the door and, well, you know.

0:54:00 > 0:54:02I'll leave the rest to your imagination.

0:54:03 > 0:54:07I was worried about Herman's tight budget, and when you don't have a

0:54:07 > 0:54:11lot of money, you need to spend every single penny wisely.

0:54:11 > 0:54:16So, did he save some by doing all the work himself, as he intended?

0:54:19 > 0:54:22In the end, I probably didn't do that much.

0:54:22 > 0:54:24I did try, but it's quite hard.

0:54:24 > 0:54:26They call them tradesmen for a reason.

0:54:26 > 0:54:28I found that out the hard way.

0:54:28 > 0:54:31In the end, I got someone to do the plastering, electrician to do

0:54:31 > 0:54:33the rewiring, and then just people

0:54:33 > 0:54:36to help me with the final bits as well.

0:54:36 > 0:54:37It was quite hard.

0:54:37 > 0:54:40And I probably did learn a few more skills.

0:54:40 > 0:54:43But it was a lot harder than I thought it would be.

0:54:45 > 0:54:48And if all that wasn't hard enough, there has, of course,

0:54:48 > 0:54:51been another big change.

0:54:51 > 0:54:54Well, the newest member of my family, his name's Maximus.

0:54:54 > 0:54:55Little baby boy.

0:54:55 > 0:54:57He's six months old.

0:54:57 > 0:55:00And Alexander, he's two-and-a-half years old.

0:55:00 > 0:55:02They really keep me busy.

0:55:02 > 0:55:04It's great being a parent, but it's such hard work.

0:55:04 > 0:55:08That's how it's taken nine months to complete.

0:55:08 > 0:55:11So, in the end, I'm a little bit disappointed it took this long,

0:55:11 > 0:55:14but I'm still happy with the final product.

0:55:14 > 0:55:18There were also some hidden nasties that put things back too.

0:55:18 > 0:55:21There were damp issues caused by the roof and chimney,

0:55:21 > 0:55:23so although they are being repaired now,

0:55:23 > 0:55:27the water ingress meant the joists in the floor downstairs were rotten.

0:55:27 > 0:55:30So they all had to be replaced as well.

0:55:30 > 0:55:32This can't have been cheap.

0:55:34 > 0:55:38My original budget was about 15,000.

0:55:38 > 0:55:42But it's gone up to about 18, 18,500.

0:55:42 > 0:55:45In the end, I did go a little bit over budget, but not too much.

0:55:45 > 0:55:47So I'm quite pleased with that.

0:55:47 > 0:55:50Herman bought the house for £100,000,

0:55:50 > 0:55:55so that meant a total investment of £118,500.

0:55:55 > 0:55:58And his hope when he began his project was to make

0:55:58 > 0:56:00a profit of 20,000.

0:56:00 > 0:56:03Let's see if two local estate agents think he's cracked it.

0:56:05 > 0:56:09The refurb is a fair refurb. But I think, personally,

0:56:09 > 0:56:11I would have changed the front windows

0:56:11 > 0:56:12cos it still looks like a shop.

0:56:12 > 0:56:15This is a nice, sensibly-sized family home.

0:56:15 > 0:56:16Two good-sized bedrooms.

0:56:16 > 0:56:18It's obviously been refurbished.

0:56:18 > 0:56:20And the bathroom is an exceptionally good size.

0:56:20 > 0:56:24The downstairs bathroom isn't an issue, but what is an issue

0:56:24 > 0:56:26is that the back door comes out of the bathroom.

0:56:26 > 0:56:30I think they would have been far better putting a little lobby there

0:56:30 > 0:56:33and keeping the bathroom totally separate.

0:56:33 > 0:56:37Herman decided against putting in a corridor upstairs

0:56:37 > 0:56:40to give separate access to the third bedroom.

0:56:40 > 0:56:42Now, could this be an issue?

0:56:42 > 0:56:44I like the bedrooms, the two bedrooms are good sizes.

0:56:44 > 0:56:47The third bedroom being off one of the bedrooms may or may not

0:56:47 > 0:56:49be an issue for some people.

0:56:49 > 0:56:51Although for a family with a young child,

0:56:51 > 0:56:53it may actually be an advantage.

0:56:53 > 0:56:55Hmm. So a bit of a mixed bag there.

0:56:55 > 0:56:58But the house isn't quite finished yet.

0:56:58 > 0:57:01What could it be worth when the works are complete?

0:57:01 > 0:57:06Once it's absolutely finished and it's looking clean and presentable,

0:57:06 > 0:57:08then I'd be looking to put it on the market in the region

0:57:08 > 0:57:12of £160,000 to £170,000.

0:57:12 > 0:57:14Once finished to a suitable standard,

0:57:14 > 0:57:17we would market this property at £175,000.

0:57:17 > 0:57:21The second estimate is probably a lot closer to what I would get.

0:57:21 > 0:57:25I've already had an offer which matched what the first agent said.

0:57:25 > 0:57:28I've learned from past experiences

0:57:28 > 0:57:29that being too greedy doesn't pay off.

0:57:29 > 0:57:33So I think once you have one in the bag, it's better to go with it.

0:57:33 > 0:57:35It may have been an uphill battle,

0:57:35 > 0:57:39but having accepted an offer of 160,000 means Herman

0:57:39 > 0:57:44will have a pre-tax and fees profit of £41,500,

0:57:44 > 0:57:47which he plans on investing in a new project.

0:57:47 > 0:57:50Could this eventually become a family business?

0:57:50 > 0:57:53'Yeah, of course. Well, my two boys are definitely

0:57:53 > 0:57:55'going to play a big part in my life.'

0:57:55 > 0:57:58And if I am going to develop a company and grow it,

0:57:58 > 0:58:00then I definitely want them to be part of it some day, of course.

0:58:03 > 0:58:07Property auctions attract a diverse range of people.

0:58:07 > 0:58:09Yes, and we love following their stories.

0:58:09 > 0:58:13Yes, and we'll have more of those stories next time for you here

0:58:13 > 0:58:15- on Homes Under The Hammer. - Goodbye.- Bye.- Goodbye.