0:00:02 > 0:00:03Hello, and welcome to the show.
0:00:03 > 0:00:05The housing stock across the UK has such variety,
0:00:05 > 0:00:07from Victorian villas to brand-new bungalows.
0:00:07 > 0:00:10Yet the trouble is, there's so much to choose from.
0:00:10 > 0:00:12I mean, that is the problem, where do you start?
0:00:12 > 0:00:14Well, whatever you're looking for,
0:00:14 > 0:00:17you could find it waiting for you under the hammer.
0:00:42 > 0:00:44Bidding at auction is quite nerve-racking,
0:00:44 > 0:00:47but I've got to admit, I absolutely love it.
0:00:47 > 0:00:49Oh, me too, it's really exciting.
0:00:49 > 0:00:53But you do need to keep a cool head and not get too carried away.
0:00:53 > 0:00:56Yes. Did that happen to any of the buyers on today's show?
0:00:56 > 0:00:57Let's find out.
0:00:58 > 0:01:01This grand four-bedroom terraced house
0:01:01 > 0:01:03in London proves a firm favourite.
0:01:03 > 0:01:04SHE GASPS
0:01:04 > 0:01:07It's taken my breath away a bit. I just love houses like this.
0:01:09 > 0:01:10And without planning permission,
0:01:10 > 0:01:13I weigh up the odds for this plot in north Birmingham.
0:01:13 > 0:01:16Probability of you getting that planning permission,
0:01:16 > 0:01:17I'd say...eight out of ten.
0:01:18 > 0:01:21And will the buyer of this three-bed in Newcastle-under-Lyme
0:01:21 > 0:01:23end up losing out?
0:01:23 > 0:01:26They both said the best you're going to be able to get out of it is 110.
0:01:26 > 0:01:28- Yeah.- I'm going to be at a loss at that point.
0:01:30 > 0:01:32All these properties have been sold at auction,
0:01:32 > 0:01:34and we'll find out who bought them
0:01:34 > 0:01:36and what they paid when they went under the hammer.
0:01:36 > 0:01:38You've bought it, madam, well done.
0:01:43 > 0:01:46Lucy's auction lot this time is in Eltham,
0:01:46 > 0:01:49a suburb in the south-east of London.
0:01:49 > 0:01:51It's located between Bromley and Catford,
0:01:51 > 0:01:53and not far from the bustling town centre
0:01:53 > 0:01:57and mainline train station and bus stations,
0:01:57 > 0:02:00you find tree-lined roads with good-sized family properties.
0:02:00 > 0:02:05Well, this is a lovely residential street with lots of
0:02:05 > 0:02:09grand Edwardian houses. So far, I really am impressed,
0:02:09 > 0:02:11but will that continue?
0:02:11 > 0:02:15Well, the property I am here to see is a four-bedroom end of terrace,
0:02:15 > 0:02:19and it had a guide price of £420,000.
0:02:19 > 0:02:21And it's this.
0:02:21 > 0:02:24Little bit eerie from the outside, but lovely.
0:02:24 > 0:02:27But before I head inside, the first thing I've noticed -
0:02:27 > 0:02:29no off-street parking,
0:02:29 > 0:02:32so that is something you can think about doing before you even walk
0:02:32 > 0:02:33through the front door.
0:02:33 > 0:02:36And there's certainly room to create parking
0:02:36 > 0:02:37for at least one car,
0:02:37 > 0:02:41though it would be nice to keep some of that front garden space.
0:02:42 > 0:02:44Not too spooky on the inside.
0:02:44 > 0:02:48In fact, it's absolutely fantastic!
0:02:48 > 0:02:51I would love to get my hands on a house like this!
0:02:51 > 0:02:56Ooh! It's everything I love, a big double-fronted Edwardian house,
0:02:56 > 0:03:00you've got a reception room either side, lovely traditional panelling.
0:03:00 > 0:03:05Everywhere I'm looking I can see cornicing, lovely ceiling height,
0:03:05 > 0:03:08just fantastic. So this is another reception room.
0:03:08 > 0:03:11Usually with a double-fronted house, if they're wide,
0:03:11 > 0:03:13they're not usually deep,
0:03:13 > 0:03:14but I'm glad to see that this one
0:03:14 > 0:03:17has rooms that go right the way back.
0:03:17 > 0:03:22Very spacious, and the big fireplace, well, an almighty crack.
0:03:22 > 0:03:24I'd probably get somebody structural to have a look at that.
0:03:24 > 0:03:28Hopefully, that's just because this house has stood for a period of time
0:03:28 > 0:03:31and nothing to worry about, but I'd get that double-checked anyway.
0:03:31 > 0:03:32But a great space here,
0:03:32 > 0:03:35beautiful French doors that lead out to the garden.
0:03:35 > 0:03:36SHE GASPS
0:03:36 > 0:03:38It's taken my breath away a bit.
0:03:38 > 0:03:41I just love houses like this. Brilliant!
0:03:43 > 0:03:46Usually about now I would make a joke
0:03:46 > 0:03:48about Lucy's rose-tinted glasses,
0:03:48 > 0:03:49but not in this case.
0:03:49 > 0:03:53OK, there is a lot of work to do, but what a project.
0:03:55 > 0:03:58It's just a bit like walking into a film set, this house,
0:03:58 > 0:04:00but I am loving it.
0:04:00 > 0:04:03The doors are all lovely and chunky,
0:04:03 > 0:04:07you've got beautiful sash windows everywhere, and out there, well,
0:04:07 > 0:04:11the garden is fantastic, it even goes beyond where the eye can see.
0:04:11 > 0:04:14I know just behind those bushes you've got a bit more space.
0:04:14 > 0:04:15And because of this L-shape,
0:04:15 > 0:04:18I just don't think the kitchen's big enough,
0:04:18 > 0:04:20so you could easily extend out there
0:04:20 > 0:04:22and even right the way across
0:04:22 > 0:04:25to make this a really good family-sized kitchen.
0:04:25 > 0:04:29But, my, it's incredible to look at a space like this.
0:04:29 > 0:04:35And down here you've got an old oil-fired sort of burner/stove -
0:04:35 > 0:04:38absolutely amazing.
0:04:38 > 0:04:41But something the new owner WILL have to take into account,
0:04:41 > 0:04:43they're going to going to have to save their pennies,
0:04:43 > 0:04:46because I think you might need a new boiler. Have a look.
0:04:49 > 0:04:53Blimey, that is a bit of a museum piece as well.
0:04:53 > 0:04:57As much I love original features, these might be past it.
0:04:57 > 0:05:00But there are some worth saving.
0:05:00 > 0:05:03Otherwise, this is a back-to-brick renovation.
0:05:03 > 0:05:05But what a shell to work with.
0:05:05 > 0:05:09There is even a downstairs cellar, where most, in fact, cellars are.
0:05:11 > 0:05:14While upstairs, on the half-landing, is the bathroom.
0:05:21 > 0:05:24And then there are four bedrooms, all good sizes,
0:05:24 > 0:05:27but all showing signs of damp and decay.
0:05:31 > 0:05:35But underneath all of this you can definitely see that this was once
0:05:35 > 0:05:37a grand and very special house.
0:05:39 > 0:05:41Now, I've been speaking to some of the neighbours,
0:05:41 > 0:05:46and apparently the properties along this road are Corbett houses,
0:05:46 > 0:05:50which means they were designed by architect Archibald Cameron Corbett.
0:05:50 > 0:05:53Now, Archibald, he wanted to promote
0:05:53 > 0:05:55healthy living and thriving communities,
0:05:55 > 0:06:00hence plenty of local facilities, large front and back gardens,
0:06:00 > 0:06:06and apparently he even insisted on an embargo on alcohol at the time.
0:06:06 > 0:06:09Luckily, that last point no longer applies, thankfully,
0:06:09 > 0:06:12but these gorgeous houses are part of his legacy.
0:06:12 > 0:06:14Well, most of them are anyway,
0:06:14 > 0:06:16and the one we're looking at hopefully will be too,
0:06:16 > 0:06:18once the renovation works are complete.
0:06:18 > 0:06:20MUSIC: You're A Wonderful One by Marvin Gaye
0:06:20 > 0:06:23And in fact, this Corbett house was built around the 1900s
0:06:23 > 0:06:27and is thought to be one of the first built on the road.
0:06:29 > 0:06:33Which means it's the oldest building, but also the largest.
0:06:33 > 0:06:35It was originally sold for £800,
0:06:35 > 0:06:37which was a lot of money in those days!
0:06:42 > 0:06:44What does a local estate agent make
0:06:44 > 0:06:48of this grand old and unique four-bedroom property?
0:06:49 > 0:06:51Properties like this are very unusual to come up nowadays
0:06:51 > 0:06:54within London boroughs, only because people have bought them
0:06:54 > 0:06:56and converted them so much into flats,
0:06:56 > 0:06:58so to see something like this is absolutely amazing
0:06:58 > 0:07:01and I love it. I love the fact that hopefully someone will buy it as
0:07:01 > 0:07:04a house and live in it, that would be the best thing for the house.
0:07:04 > 0:07:07Yes, relatively large untouched houses
0:07:07 > 0:07:10like this in London are becoming rare beasts.
0:07:10 > 0:07:13But if keeping it as a house is the best thing to do,
0:07:13 > 0:07:16how would it be best to enhance it for modern living?
0:07:18 > 0:07:21The house has got a very good-sized garden and it's quite a wide plot,
0:07:21 > 0:07:23and the way the layout is at the back, the footprint,
0:07:23 > 0:07:26you could extend quite easily right across the back,
0:07:26 > 0:07:27extending the kitchen.
0:07:27 > 0:07:30The off-street parking option, I think, should be done.
0:07:30 > 0:07:32Most of the houses down here have it,
0:07:32 > 0:07:35and there is sort of permit parking on the road as well,
0:07:35 > 0:07:37so, if it was me, I would definitely put off-street parking in.
0:07:38 > 0:07:42This house was guided at 420,000, but it's going to take -
0:07:42 > 0:07:45at the very least - 100,000 to get it up to standard,
0:07:45 > 0:07:48so could this one be worth investing in?
0:07:50 > 0:07:51If it was to be renovated,
0:07:51 > 0:07:54have the extension put on the back for a larger kitchen/dining area,
0:07:54 > 0:07:58giving more foot space to the ground floor level and off-street parking
0:07:58 > 0:08:01was put in, I'd place the value at £700,000.
0:08:01 > 0:08:04And the agent reckoned that if this property found its way
0:08:04 > 0:08:07into the rental market, a monthly rent of £1,600 per month
0:08:07 > 0:08:08might be possible.
0:08:11 > 0:08:15Yep, you get a whole lot of property with this end-of-terrace house,
0:08:15 > 0:08:17and I love it.
0:08:17 > 0:08:19But you also get a whole lot of work, too.
0:08:19 > 0:08:22But once it's brought back to its former glory...
0:08:22 > 0:08:25I think this could make a gorgeous home for someone.
0:08:25 > 0:08:28I just hope whoever bought this has plenty of renovation experience
0:08:28 > 0:08:32under their belt. Let's find out who that buyer was
0:08:32 > 0:08:33when we went to auction.
0:08:36 > 0:08:40Lot 40, end-of-terrace double-fronted house.
0:08:40 > 0:08:42Who would like to kick off on this,
0:08:42 > 0:08:45nice, big double-fronted house, Eltham?
0:08:45 > 0:08:48How much, 480? 480 down here, 480.
0:08:48 > 0:08:51485. 500?
0:08:51 > 0:08:53That's what I'd do, 500.
0:08:53 > 0:08:58505? 510. 510 with you, madam?
0:08:58 > 0:09:01515. 520.
0:09:01 > 0:09:04Well, after a tentative start, things really hotted up,
0:09:04 > 0:09:09and we rejoin the bidding at 595,000.
0:09:09 > 0:09:14595, 596, 597.
0:09:14 > 0:09:19598? 598.
0:09:19 > 0:09:24599? Nearly. 600.
0:09:24 > 0:09:28601? 602?
0:09:29 > 0:09:34601 first time, second time, third and last time...
0:09:35 > 0:09:37Sold, 601.
0:09:37 > 0:09:43So, for a whacking £181,000 above the guide price,
0:09:43 > 0:09:45and for £601,000,
0:09:45 > 0:09:51the grand old Eltham house was sold to Damon and his wife Penny.
0:09:51 > 0:09:53Damon is a paramedic leader,
0:09:53 > 0:09:57while Penny works in the retail sector as a senior merchandiser,
0:09:57 > 0:10:00and they have two children, Joshua and Ella.
0:10:00 > 0:10:03I'm delighted to say the house is going to be their new family home.
0:10:03 > 0:10:06Lucy caught up with Penny to tell us more.
0:10:06 > 0:10:08- Penny, it's lovely to meet you today.- You too, Lucy.
0:10:08 > 0:10:11I love this house! Full of character.
0:10:11 > 0:10:13Is it the character that inspired you to want to buy this?
0:10:13 > 0:10:14Totally, really, yes.
0:10:14 > 0:10:18It's a beautiful period property and there's so much potential.
0:10:18 > 0:10:21I've lived in Eltham for about 18 years,
0:10:21 > 0:10:24and I've always wanted to live in this road,
0:10:24 > 0:10:27and I walk past it quite frequently when I take my children
0:10:27 > 0:10:29to and from school. And, yeah,
0:10:29 > 0:10:31I'm really excited to have the opportunity to live here.
0:10:31 > 0:10:34So what happened, did you see the auction sign go up, did you think,
0:10:34 > 0:10:37- "I'd love to live there!"- Yes. Actually, the next-door neighbour
0:10:37 > 0:10:38came round to tell me, cos we'd walked by it
0:10:38 > 0:10:40and I'd wondered for a while
0:10:40 > 0:10:42what was going to happen to this house and thought,
0:10:42 > 0:10:44"Oh, wouldn't it be great if we could live there?"
0:10:44 > 0:10:47And he actually came round and said, "It's going up for auction."
0:10:47 > 0:10:49It's a bit like, "Oh, my word!"
0:10:49 > 0:10:52And very, very quickly, obviously, you have to move.
0:10:52 > 0:10:55So when the hammer went down on auction day, tell me how you felt?
0:10:55 > 0:10:57Really emotional.
0:10:57 > 0:10:59At the viewings, there were so many developers in here,
0:10:59 > 0:11:03so many people in here, and I thought we hadn't got a chance,
0:11:03 > 0:11:06but we went along, thought, "Nothing to lose,
0:11:06 > 0:11:08"we know our budget, let's just go and see",
0:11:08 > 0:11:10and as you're going along
0:11:10 > 0:11:12you're suddenly starting to think,
0:11:12 > 0:11:14"Actually, we might actually get this."
0:11:14 > 0:11:18And then when it went down, I was just really, really emotional.
0:11:18 > 0:11:20So you had already fallen in love with the property?
0:11:20 > 0:11:22Yeah, but I was trying not to!
0:11:22 > 0:11:25You know when you think, "I'm not going to get it"?
0:11:25 > 0:11:27so I was trying to be reserved,
0:11:27 > 0:11:29but, yeah, I had fallen in love with it.
0:11:29 > 0:11:31Having recently sold their own house,
0:11:31 > 0:11:33they are currently living with Penny's parents,
0:11:33 > 0:11:36but with both children going to nearby schools,
0:11:36 > 0:11:39you can see whyy Penny was so keen to get this house,
0:11:39 > 0:11:41though it is far from ready to move into.
0:11:42 > 0:11:45It's a full refurbishment, so everything will have to...
0:11:45 > 0:11:50You know, it's the wiring, the heating, the floors, the internals.
0:11:50 > 0:11:51It's a bare brick job, isn't it?
0:11:51 > 0:11:55There's no kitchen! There's an Aga and a butler's sink, and that's it!
0:11:55 > 0:11:57I think you'll be keeping that butler's sink!
0:11:57 > 0:11:58- Yeah.- You'll be keeping everything!
0:11:58 > 0:12:01We want to try and retain as much of it as we can,
0:12:01 > 0:12:04because there's so much that it needs to be refurbished,
0:12:04 > 0:12:06but I'm really keen it's restored
0:12:06 > 0:12:09and it's restored to how it should be,
0:12:09 > 0:12:11rather than just being modernised.
0:12:11 > 0:12:13- What about an extension?- Yes. - Are you planning on going out?
0:12:13 > 0:12:16Yeah. I like the proportions downstairs,
0:12:16 > 0:12:19and I don't really like walls to be knocked through,
0:12:19 > 0:12:20because I think that it was built
0:12:20 > 0:12:23with such beautiful proportions, I want to retain that,
0:12:23 > 0:12:26but what we would like to do
0:12:26 > 0:12:28is have an open living family space also,
0:12:28 > 0:12:31so our plan is to go all the way across the back
0:12:31 > 0:12:33with, like, a big kitchen diner,
0:12:33 > 0:12:36so we've got a family room for everyone to congregate in,
0:12:36 > 0:12:39but then also everyone can have their own space.
0:12:39 > 0:12:41How much do you think you're going to need to spend here
0:12:41 > 0:12:43to really get it how you want it?
0:12:43 > 0:12:46Yeah. Well, at the moment, our budget is 150K.
0:12:46 > 0:12:49Along with that proposed £150,000 budget,
0:12:49 > 0:12:52they hope to get planning permission for the extension
0:12:52 > 0:12:55and for their builders to complete the work in 6-9 months.
0:12:55 > 0:12:59So taking into account the vast amount of work that needs
0:12:59 > 0:13:03- to be done here...- Yeah.- ..have you done much DIY yourself before?
0:13:03 > 0:13:04Nothing on this scale, no.
0:13:04 > 0:13:07So you really will be leaning on your builder and taking his lead?
0:13:07 > 0:13:08Totally, yeah.
0:13:08 > 0:13:10Totally trust him and, yeah,
0:13:10 > 0:13:13he's renovated houses like this in the past, in fact,
0:13:13 > 0:13:18he lives in one quite similar, so, yeah, we trust him.
0:13:18 > 0:13:20Penny, I'm so excited to see what you do,
0:13:20 > 0:13:23I know it's going to be amazing, and it's a project from the heart.
0:13:23 > 0:13:24- Congratulations.- Thank you, Lucy.
0:13:25 > 0:13:30Well, Penny may have paid way over the guide price for this house,
0:13:30 > 0:13:32but it's going to be her family home,
0:13:32 > 0:13:35and I am sure there will be plenty of priceless memories made
0:13:35 > 0:13:39once they are living here. But before that happens...
0:13:39 > 0:13:41there's a lot of work to do, and Penny and her family
0:13:41 > 0:13:44haven't tackled anything this big before.
0:13:44 > 0:13:46Hmm! Join me later in the programme
0:13:46 > 0:13:49and you can find out if this family
0:13:49 > 0:13:52are going to live happily ever after in their new Eltham pad.
0:13:56 > 0:13:58I am just north of Birmingham,
0:13:58 > 0:14:01near one of the city's most famous landmarks.
0:14:01 > 0:14:03Is it the Bullring? Nope.
0:14:03 > 0:14:06Is it their marvellous canal system? No, no, no.
0:14:06 > 0:14:08It's the football ground of West Bromwich Albion,
0:14:08 > 0:14:11the team known as "the Baggies".
0:14:12 > 0:14:14They are currently playing Premiership football.
0:14:14 > 0:14:17The question is, what league will the property be in today,
0:14:17 > 0:14:20and will I BAGGIE myself a bargain?
0:14:23 > 0:14:26Well, the lot I'm here to see is in an area called Handsworth,
0:14:26 > 0:14:29literally just round the corner from the football ground.
0:14:29 > 0:14:33It's known as a transitional area, lots of people coming and going,
0:14:33 > 0:14:37but it's a good place to get your foot on the property ladder.
0:14:37 > 0:14:40Although it will be a while before you can inhabit the lot I'm here
0:14:40 > 0:14:42to see, because it is in fact a plot of land.
0:14:42 > 0:14:46Guide price was 40,000 quid, and it's behind this fence.
0:14:46 > 0:14:48HE GRUNTS
0:14:49 > 0:14:51Well, no problem with access, then,
0:14:51 > 0:14:55we're right on a reasonably busy road with houses left and right.
0:14:55 > 0:14:56It's a promising start.
0:14:57 > 0:15:00So what lurks behind the gate?
0:15:00 > 0:15:02- Well... - HE LAUGHS
0:15:02 > 0:15:04A big plot of land, that's what lurks behind the gate.
0:15:04 > 0:15:08It stretches all the way down to that fence in the distance.
0:15:08 > 0:15:10God, a fairly long way, that is.
0:15:10 > 0:15:12A good size in terms of width.
0:15:12 > 0:15:15At the moment, it doesn't have planning permission.
0:15:15 > 0:15:17If it did, it would be a lot more expensive.
0:15:17 > 0:15:18So what are the options here?
0:15:18 > 0:15:21Well, you could buy it and just get that planning permission,
0:15:21 > 0:15:23there are people who specialise in doing that,
0:15:23 > 0:15:25because you can dramatically increase the land's value
0:15:25 > 0:15:28when you do. Or you could buy it, get the planning permission
0:15:28 > 0:15:30and then build whatever you're thinking about.
0:15:30 > 0:15:33Certainly, in terms of getting planning permission,
0:15:33 > 0:15:36I think a fairly good chance of getting residential use on here,
0:15:36 > 0:15:39maybe for a block of flats, maybe for a pair of semis or whatever,
0:15:39 > 0:15:43it really depends on what the local planning authority's policy
0:15:43 > 0:15:45is at the moment. But in terms of where it is,
0:15:45 > 0:15:46residential on that side,
0:15:46 > 0:15:48residential on that side, local amenities...
0:15:48 > 0:15:51In terms of the probability of you getting that planning permission,
0:15:51 > 0:15:54I'd say, ooh, eight out of ten.
0:15:54 > 0:15:57You can never be 100% certain when it comes to land
0:15:57 > 0:16:00and planning permission, but in an area like this,
0:16:00 > 0:16:03with this land serving no real purpose,
0:16:03 > 0:16:07it's unlikely that any reasonable residential plan would be refused.
0:16:07 > 0:16:10There's plenty of room, the land is almost flat
0:16:10 > 0:16:13and you only have one tree to contend with.
0:16:13 > 0:16:17On a sunny day like today, it's actually very pleasant.
0:16:17 > 0:16:21But does that mean your development will come up smelling of roses,
0:16:21 > 0:16:24or will this site end up soaking up all the profits?
0:16:27 > 0:16:30MUSIC: Soak Up The Sun by Sheryl Crow
0:16:36 > 0:16:40So let's say you apply for planning permission, you get it for, say,
0:16:40 > 0:16:41a couple of semidetached properties.
0:16:41 > 0:16:45Hurray! But what then? Well, unfortunately,
0:16:45 > 0:16:49the resale market around here is very depressed at the moment,
0:16:49 > 0:16:53so it's unlikely you're going to be able to sell whatever you build,
0:16:53 > 0:16:57so it's going to really be a buy-to-let investor who does this,
0:16:57 > 0:16:59because the rental market, on the other hand,
0:16:59 > 0:17:03around here is extremely good, £550 a month on average for a semi.
0:17:03 > 0:17:06So, build them, but really concentrate
0:17:06 > 0:17:09on keeping the costs of build down,
0:17:09 > 0:17:12and you could still be on the money.
0:17:22 > 0:17:26Hitting the right market for new builds is no easy task.
0:17:26 > 0:17:27The whole process can take time,
0:17:27 > 0:17:30during which build costs and market prices
0:17:30 > 0:17:33can be constantly changing, so to be in the money,
0:17:33 > 0:17:34be prepared for the long haul.
0:17:40 > 0:17:43But what does an agent from the auction house
0:17:43 > 0:17:47that sold the site think should be built here?
0:17:47 > 0:17:50I think it's almost inevitable it's going to be houses.
0:17:50 > 0:17:52You wouldn't build an apartment in the current market,
0:17:52 > 0:17:54and you're likely to build... You might just squeeze in three,
0:17:54 > 0:17:56but I think you're more likely
0:17:56 > 0:17:58to get two in, onto the site.
0:17:58 > 0:18:03And what might two three-bed houses achieve on the current sales market?
0:18:03 > 0:18:06If you got a planning permission for, say, two semidetached houses,
0:18:06 > 0:18:08three bedrooms, you're probably looking at
0:18:08 > 0:18:10about £100,000 per dwelling.
0:18:12 > 0:18:15So, potentially £200,000 in total,
0:18:15 > 0:18:19and with rentals in the area running at around £500 per month,
0:18:19 > 0:18:22this is definitely a case where you've got to be careful not to
0:18:22 > 0:18:26overdevelop the site, as you simply won't get the return.
0:18:27 > 0:18:29Well, the plot may look cheap,
0:18:29 > 0:18:32but it's an area that isn't scoring too many goals
0:18:32 > 0:18:33on the resale front,
0:18:33 > 0:18:37so whoever bought it needs to play the long game,
0:18:37 > 0:18:40and maybe turn build-to-let investor,
0:18:40 > 0:18:45and strike it rich on the rental market while that's hot.
0:18:45 > 0:18:48Let's see who bought it when it went under the hammer.
0:18:50 > 0:18:52Lot seven. It's a vacant freehold development.
0:18:52 > 0:18:54Where shall we start, folks?
0:18:54 > 0:18:57Start me, if you will. 40,000 anywhere?
0:18:57 > 0:19:0035? 30?
0:19:00 > 0:19:0225,000 then?
0:19:02 > 0:19:04At 25,000, what a buy this is going to be.
0:19:04 > 0:19:06- Where am I? - MUFFLED REPLY
0:19:06 > 0:19:09Thank you. And have you got a banker's draft, sir?
0:19:09 > 0:19:11At 25,000 I'm bid, thank you.
0:19:11 > 0:19:1226 is that, sir?
0:19:12 > 0:19:1526. 27, sir? 28?
0:19:16 > 0:19:19After chopping 15 grand off the initial guide price,
0:19:19 > 0:19:22the bids finally started rolling in.
0:19:22 > 0:19:24We rejoin with the price at 42,000.
0:19:26 > 0:19:28I've got 42 at the front.
0:19:28 > 0:19:29Is it 43 at the back?
0:19:31 > 0:19:33No, I'm not going to do halves, sir, I can't,
0:19:33 > 0:19:34we've got so much to go. 43, thank you.
0:19:34 > 0:19:3743. Is it 44? 44. 45?
0:19:37 > 0:19:4045, thank you. Is it 46?
0:19:40 > 0:19:42Yep? With a smile.
0:19:42 > 0:19:4346. 47?
0:19:43 > 0:19:49No. At £46,000, then, on my right, are we all done?
0:19:49 > 0:19:50One, two, three...
0:19:50 > 0:19:51GAVEL BANGS
0:19:51 > 0:19:53Congratulations.
0:19:55 > 0:19:57So, for £6,000 over the guide price,
0:19:57 > 0:20:00the new owners of the Handsworth site
0:20:00 > 0:20:02are friends and business partners Gurmit,
0:20:02 > 0:20:05on the right, and Hamej.
0:20:05 > 0:20:08I met them back at the site to find out the all-important issue -
0:20:08 > 0:20:10what's it going to be?
0:20:17 > 0:20:19- Congratulations.- Same to you. - Thank you.
0:20:19 > 0:20:21Tell me why you wanted to buy the plot?
0:20:21 > 0:20:23We buy the plot to build a house.
0:20:23 > 0:20:28- Right.- Going to build at least two houses, three-bedroom houses.
0:20:28 > 0:20:32But if we can get more small houses, for letting it,
0:20:32 > 0:20:34it would be good for us.
0:20:34 > 0:20:36So the maximum number of houses you could get on here?
0:20:36 > 0:20:38Maximum three, but minimum two.
0:20:38 > 0:20:41Semidetached, terraced, detached, or what?
0:20:41 > 0:20:44If it's semidetached, it would be two, one pair of semi.
0:20:44 > 0:20:46If it's a terrace, probably three.
0:20:46 > 0:20:49And then tell me the build costs?
0:20:49 > 0:20:51Well, we thought about this, build cost.
0:20:51 > 0:20:56If it's two, I'd think 140 for both to be complete.
0:20:56 > 0:21:00If it's three, it's... 170, 180.
0:21:02 > 0:21:05Adding the £140,000 build costs
0:21:05 > 0:21:08to the £46,000 purchase backs up what I said earlier.
0:21:08 > 0:21:11If you build houses here,
0:21:11 > 0:21:14it's the rental return that will make this development work.
0:21:14 > 0:21:18# Work, work, work, to make it work... #
0:21:18 > 0:21:20So tell me about you two.
0:21:20 > 0:21:22What's the relationship, and how do you work together?
0:21:22 > 0:21:25The relationship, good friend.
0:21:25 > 0:21:26Very good friend.
0:21:26 > 0:21:30We know each other for the last five, six years.
0:21:30 > 0:21:32And we've got another piece of land
0:21:32 > 0:21:35which has been building eight houses.
0:21:35 > 0:21:37- Oh, right!- So, together.
0:21:37 > 0:21:39So the partnership works well?
0:21:39 > 0:21:43- Yeah.- Yes, of course, partnership's working very, very well.
0:21:43 > 0:21:47I do say, I love to do this sort of work.
0:21:47 > 0:21:49Are you actually going to get involved in the build,
0:21:49 > 0:21:52do you have a team of builders? Do you actually get your hands dirty?
0:21:52 > 0:21:54Yes, yes. Oh, yes, of course I do.
0:21:54 > 0:21:56Well, I'm professionally a plumber.
0:21:56 > 0:22:00- Oh, great.- Right.- And ongoing, what will your involvement be?
0:22:00 > 0:22:05I do the buying and organise...
0:22:05 > 0:22:08- The material. - ..the material side,
0:22:08 > 0:22:11and he's the supervisor on the sites.
0:22:12 > 0:22:15Gurmit used to work in the clothing business,
0:22:15 > 0:22:19but became interested in building around ten years ago,
0:22:19 > 0:22:23while Hamej has been a plumber and heating engineer for 30 years
0:22:23 > 0:22:25and previously worked for the local council.
0:22:25 > 0:22:27They teamed up a few years ago,
0:22:27 > 0:22:30and at present are busy building on another site.
0:22:31 > 0:22:34- So what's the timescale? - Timescale...
0:22:34 > 0:22:37It's up to, uh...
0:22:37 > 0:22:408, 9 to 10 months, 12 months.
0:22:40 > 0:22:42Same time, we're going to work these, the other one.
0:22:42 > 0:22:46- Oh, right, you bought the plot of land opposite as well?- That's right.
0:22:46 > 0:22:47Well, that's a turn up.
0:22:47 > 0:22:50In fact, the plot opposite was their main target at the auction,
0:22:50 > 0:22:54and this £46,000 buy was actually a bonus.
0:22:56 > 0:23:00Came to buy the plot opposite, expecting to pay 100,000.
0:23:00 > 0:23:02- We bought it for 64.- 64.
0:23:02 > 0:23:06- Right, so it's almost like you got this plot for free.- Two-for-one.
0:23:06 > 0:23:09- MARTIN LAUGHS - Buy one, one free.
0:23:09 > 0:23:12Result! Well, listen, congratulations, good luck with it.
0:23:12 > 0:23:14- Thank you very much.- I look forward to seeing how you get on.
0:23:14 > 0:23:16- Thanks very much.- Thank you.
0:23:17 > 0:23:21So, two plots for 100 grand and two plots without planning permission.
0:23:21 > 0:23:24It's a gamble, and with their other building commitments,
0:23:24 > 0:23:27this is going to be a busy period for the pair.
0:23:30 > 0:23:35# It's gonna be, it's gonna be... #
0:23:36 > 0:23:38Well, Hamej and Gurmit haven't just bought themselves
0:23:38 > 0:23:41two plots of land here, they've got themselves a rental portfolio.
0:23:41 > 0:23:45They're going to have to keep a tight rein on the build budget,
0:23:45 > 0:23:48but I'm delighted they've gone down the build-to-rent route.
0:23:48 > 0:23:50I think it's the only way to go.
0:23:50 > 0:23:55Find out how they get on turning this grassland into a housing estate
0:23:55 > 0:23:57later in the show.
0:23:58 > 0:24:01Still to come, I find a fan in Newcastle-under-Lyme.
0:24:01 > 0:24:04I've been watching your show, as many people say.
0:24:04 > 0:24:05- You've inspired me.- Get in there!
0:24:05 > 0:24:08- It's true, you have so inspired me. - Thank you.
0:24:10 > 0:24:13And Gurmit has sound advice for would-be developers.
0:24:13 > 0:24:17I'd tell them to get out of bed and get on with it!
0:24:22 > 0:24:26Back now to the leafy streets of Eltham in south-east London,
0:24:26 > 0:24:28where Lucy fell in love with a magnificent
0:24:28 > 0:24:30double-fronted Edwardian house
0:24:30 > 0:24:35which was guided at an intriguing £420,000 plus,
0:24:35 > 0:24:39and it has some interesting original features, outside and in.
0:24:39 > 0:24:42And while we do love an original detail,
0:24:42 > 0:24:45sometimes things just have to go.
0:24:45 > 0:24:49There was no getting away from it, this was a back to brick renovation,
0:24:49 > 0:24:53but Lucy had already fallen for this house, hook, line and sinker.
0:24:53 > 0:24:58Everywhere I'm looking I can see cornicing, lovely ceiling height.
0:24:58 > 0:24:59SHE GASPS
0:24:59 > 0:25:01It's taken my breath away a bit.
0:25:01 > 0:25:04I just love houses like this. Oh, brilliant!
0:25:05 > 0:25:08Lucy was enchanted by this place.
0:25:08 > 0:25:12The potential to create a magical family home was tantalising.
0:25:12 > 0:25:15And when it came to auction, it was husband and wife Damon and Penny
0:25:15 > 0:25:19who were successful with a bid of £601,000.
0:25:19 > 0:25:20Third and last time...
0:25:22 > 0:25:24Sold, 601.
0:25:24 > 0:25:29And for Penny, this was the realisation of a lifelong dream.
0:25:29 > 0:25:32I've lived in Eltham for about 18 years
0:25:32 > 0:25:34and I have always wanted to live in this road.
0:25:34 > 0:25:39# But if I had one chance to freeze time
0:25:39 > 0:25:44# And stand still and soak in everything... #
0:25:44 > 0:25:47Yeah, I think we'd all have a jam, wouldn't you?
0:25:47 > 0:25:49# I'd choose right now... #
0:25:49 > 0:25:52Before it could be Penny's dream family home,
0:25:52 > 0:25:54there was a lot of work to do,
0:25:54 > 0:25:57but Penny was keen to retain the feel of the original building.
0:25:58 > 0:26:01I don't really like walls to be knocked through,
0:26:01 > 0:26:03because I think it was built with such beautiful proportions,
0:26:03 > 0:26:05I want to retain that,
0:26:05 > 0:26:09but what we would like to do is have an open living family space also,
0:26:09 > 0:26:12so our plan is to go all the way across the back
0:26:12 > 0:26:14with, like, a big kitchen diner,
0:26:14 > 0:26:17so we've got a family room for everyone to congregate in,
0:26:17 > 0:26:20but then also everyone can have their own space.
0:26:22 > 0:26:25So, with a full refurb and rear extension planned,
0:26:25 > 0:26:28Penny and family had a budget of 150,000
0:26:28 > 0:26:31and a timescale of 6-9 months.
0:26:35 > 0:26:37We returned 20 months later,
0:26:37 > 0:26:41and I can see that the facade of the house has been restored.
0:26:42 > 0:26:46Lucy thought that there was room for off-street parking here,
0:26:46 > 0:26:49and that's exactly what they've done.
0:26:49 > 0:26:52But how does it look inside?
0:26:52 > 0:26:57# Ah, home, let me go home
0:26:57 > 0:27:01# Home is where I'm with you... #
0:27:01 > 0:27:03It's almost unrecognisable.
0:27:03 > 0:27:05The lounge is bright and stylish,
0:27:05 > 0:27:09while still retaining some of the period features and wooden flooring.
0:27:09 > 0:27:12The modern but sympathetic decor has been used to great effect
0:27:12 > 0:27:17in the family library. What a lovely thing to have.
0:27:17 > 0:27:21# La-la-la-la, take me home
0:27:21 > 0:27:24# Mama, I'm coming home... #
0:27:24 > 0:27:27Penny's dream was to have a fabulous family living area
0:27:27 > 0:27:30and kitchen at the back.
0:27:30 > 0:27:32They've built a lovely extension to the house,
0:27:32 > 0:27:36a bright and airy kitchen diner and, like the rest of the property,
0:27:36 > 0:27:39it has been finished to an exceptional standard.
0:27:41 > 0:27:44So, how did they approach this massive project?
0:27:44 > 0:27:47So, we wanted to retain as much of the character of the original house
0:27:47 > 0:27:51as we could, but wanted to create something that was good
0:27:51 > 0:27:53for a modern family. So we've kept, out the front,
0:27:53 > 0:27:55the original living room, and also we've converted
0:27:55 > 0:27:59one of the smaller rooms in the front to a library.
0:27:59 > 0:28:03And then we've added a downstairs bathroom, and also a utility room,
0:28:03 > 0:28:05and made a big family room at the back
0:28:05 > 0:28:08which extends round to a big kitchen diner.
0:28:09 > 0:28:12Well, the new layout has certainly taken advantage
0:28:12 > 0:28:16of all that outside space.
0:28:16 > 0:28:19And the good work continues upstairs, to the half-landing -
0:28:19 > 0:28:24that ancient bathroom, which has yet again had a modern makeover.
0:28:29 > 0:28:33The four previously dark and dingy bedrooms are now all
0:28:33 > 0:28:35in pristine condition. You can really see
0:28:35 > 0:28:38Penny's attention to detail with the use of
0:28:38 > 0:28:40reclaimed fireplaces in each room,
0:28:40 > 0:28:42and the refurbished original flooring,
0:28:42 > 0:28:45which now looks good as new.
0:28:46 > 0:28:49We've completely refurbished the whole house,
0:28:49 > 0:28:52so that involves taking the ceilings out, the walls out,
0:28:52 > 0:28:56rebuilding them, plastering them, new floors throughout.
0:28:56 > 0:28:58Penny and Damon engaged a builder
0:28:58 > 0:29:00who has renovated these types of houses previously,
0:29:00 > 0:29:04and when it came to dealing with those horrible cracks,
0:29:04 > 0:29:06he knew exactly what to do.
0:29:06 > 0:29:08So, luckily, we had a great builder
0:29:08 > 0:29:11who is a really good engineer as well,
0:29:11 > 0:29:13so he's knitted the bricks together,
0:29:13 > 0:29:16so there's no structural problems any more.
0:29:16 > 0:29:20# I should be so lucky... #
0:29:20 > 0:29:22Joshua and Ella are also lucky.
0:29:22 > 0:29:26They have pretty cool bedrooms to show off to their schoolmates.
0:29:26 > 0:29:30The house is wonderful, a great mix of modern and character,
0:29:30 > 0:29:34but was that healthy 150 grand budget enough?
0:29:34 > 0:29:37We did go over, we went about £10,000 over.
0:29:37 > 0:29:39However, we did do more things
0:29:39 > 0:29:41during the project than we had initially
0:29:41 > 0:29:45intended to, so examples of that might be boarding the loft,
0:29:45 > 0:29:47adding low-level lighting.
0:29:47 > 0:29:52We also added the patio out the back and we overspent on the kitchen,
0:29:52 > 0:29:54but intentionally.
0:29:54 > 0:29:56Well, I reckon it was worth it.
0:29:56 > 0:30:00And £10,000 over budget on a project this size isn't bad at all.
0:30:00 > 0:30:02But did they stick to their schedule?
0:30:04 > 0:30:07So, the bulk of the work at the house took about a year.
0:30:07 > 0:30:10We moved in, and then there were some small parts
0:30:10 > 0:30:11of works going on around us.
0:30:11 > 0:30:15So, all in all, from start to finish, it's been about 18 months.
0:30:17 > 0:30:20So, a fair bit over the estimate of six to nine months,
0:30:20 > 0:30:25but all in all they have achieved their goal of a dream family home.
0:30:25 > 0:30:29What do two local estate agents think of this project?
0:30:29 > 0:30:33Let's start with the agent who saw it originally.
0:30:33 > 0:30:36Well, since I was here last time, I must say, the changes are amazing.
0:30:36 > 0:30:37It's transformed the house.
0:30:37 > 0:30:39I mean, you wouldn't think it was the same house.
0:30:39 > 0:30:41They may as well have knocked it down and rebuilt it!
0:30:41 > 0:30:43It looks absolutely fantastic.
0:30:43 > 0:30:45The standard of finish is very good on the property.
0:30:45 > 0:30:47I think they've done it very, very well.
0:30:47 > 0:30:49I like the flooring throughout.
0:30:49 > 0:30:51The high ceilings were obviously really good.
0:30:51 > 0:30:52It's decorated really well.
0:30:52 > 0:30:54Yeah, I think it's done very nicely.
0:30:54 > 0:30:57The extension at the back, that has really opened the house up
0:30:57 > 0:30:59in depth, and size-wise, to make such a good feel.
0:30:59 > 0:31:02They've kept some of the original features
0:31:02 > 0:31:05and feeling of the house, but modernised around it.
0:31:05 > 0:31:07So it looks really good.
0:31:07 > 0:31:09Well, the agents seem impressed.
0:31:09 > 0:31:13So with a total spend here of £761,000,
0:31:13 > 0:31:15what did they think the house could now be worth?
0:31:17 > 0:31:20If this property came onto the open market for sale purposes today,
0:31:20 > 0:31:24I would put the property on the market at £900,000 to £950,000.
0:31:24 > 0:31:29I believe the house would achieve between £850,000 and £900,000.
0:31:29 > 0:31:31Well, Penny always wanted to live on this street,
0:31:31 > 0:31:35so it seems unlikely she'd give up her dream home,
0:31:35 > 0:31:41even for £189,000 pre-tax profit, based on the highest figure.
0:31:41 > 0:31:43Your thoughts, Penny?
0:31:43 > 0:31:46It's nice to get a return on your investment.
0:31:46 > 0:31:48It's not hugely relevant to us,
0:31:48 > 0:31:50because we hope that we will never move,
0:31:50 > 0:31:52and we hope this is our home forever.
0:31:52 > 0:31:54But, yeah, it's nice to hear.
0:31:58 > 0:32:01We're in Newcastle-under-Lyme for our next property.
0:32:01 > 0:32:05It's a town sandwiched between the city of Stoke-on-Trent
0:32:05 > 0:32:08and the ever-expanding campus of Keele University.
0:32:09 > 0:32:11Founded in 1962,
0:32:11 > 0:32:15Keele has come out top on a national student satisfaction survey
0:32:15 > 0:32:17for the last three years running.
0:32:17 > 0:32:21Top marks! The presence of students means a ready supply
0:32:21 > 0:32:24of potential rentals, so property developers
0:32:24 > 0:32:27could keep an eye on Newcastle-under-Lyme.
0:32:27 > 0:32:28It could be worth it.
0:32:35 > 0:32:38The property I'm here to see is not far from the town centre,
0:32:38 > 0:32:42has great links to Nantwich and Crewe, and here it is.
0:32:42 > 0:32:48It's a three-bed property, has a guide price of £85,000,
0:32:48 > 0:32:50and it's an end terrace as well.
0:32:50 > 0:32:52I'm not hanging about out here, I'm getting in there.
0:32:57 > 0:32:59Not a nice day today.
0:32:59 > 0:33:04OK, into a porchway here with your stairs going up to the bedrooms.
0:33:04 > 0:33:07But you come straight into a good-sized lounge area
0:33:07 > 0:33:12with double glazing as well. And central heating.
0:33:12 > 0:33:14It looks like somebody may have started the decorating already,
0:33:14 > 0:33:16taking some wallpaper off.
0:33:16 > 0:33:18But it's a nice, good-sized lounge area,
0:33:18 > 0:33:21and the floor, as well, looks in good condition.
0:33:21 > 0:33:25And it links you straight into the kitchen.
0:33:25 > 0:33:28Which is, again, a nice-sized kitchen.
0:33:28 > 0:33:31The units look in good condition.
0:33:31 > 0:33:33There's a few tiles missing from the walls,
0:33:33 > 0:33:36but that's not a problem to sort out.
0:33:36 > 0:33:40And you've got a downstairs toilet as well, and a bit of storage space.
0:33:40 > 0:33:44From what I've seen so far, I am liking. Good stuff.
0:33:47 > 0:33:51Of course, if you're willing to sacrifice the downstairs loo
0:33:51 > 0:33:53and storage cupboard, there would be enough scope
0:33:53 > 0:33:55to use this space to open up the kitchen
0:33:55 > 0:33:57and maybe get a table and chairs in.
0:33:59 > 0:34:02Right, up to the three bedrooms.
0:34:03 > 0:34:06And here we are. OK, as soon as you come upstairs,
0:34:06 > 0:34:08you've got the family bathroom to your right.
0:34:08 > 0:34:12It's a good-sized family bathroom, lots of floor space in there.
0:34:12 > 0:34:15Looks in half decent condition.
0:34:15 > 0:34:18Huge first bedroom to the front of the house,
0:34:18 > 0:34:20right there, with fitted wardrobes.
0:34:20 > 0:34:23Two further bedrooms, one in there.
0:34:23 > 0:34:25You'd get a double bed in there no problems.
0:34:25 > 0:34:28And in here you've got a single bed in the box room.
0:34:28 > 0:34:30You've got a wardrobe and desk as well,
0:34:30 > 0:34:33so there's a bit of space up here, which is good.
0:34:33 > 0:34:37I'm thinking Keele University is about half a mile away.
0:34:37 > 0:34:42I know there's other student accommodation in the area as well.
0:34:42 > 0:34:47So, why not think about creating another bedroom downstairs
0:34:47 > 0:34:50with that lounge? Get some students in here
0:34:50 > 0:34:54and, hopefully, you can maximise your money. It's just an option.
0:34:55 > 0:34:56When the sun comes out,
0:34:56 > 0:34:59what student wouldn't love a back garden to study in?
0:34:59 > 0:35:01Well, this one's a bit on the small side,
0:35:01 > 0:35:05but it would only take a weekend to sort out.
0:35:05 > 0:35:07- # Students of life - Students of
0:35:07 > 0:35:10- # Students of life - Students of
0:35:10 > 0:35:14# Students of life, students of love... #
0:35:14 > 0:35:17Since coal mining was a major industry
0:35:17 > 0:35:19around Newcastle-under-Lyme,
0:35:19 > 0:35:21the chances are high there may be
0:35:21 > 0:35:23historic mining workings in the area.
0:35:23 > 0:35:25Any movement to the foundations can
0:35:25 > 0:35:28cause damage to the houses built above
0:35:28 > 0:35:30or close to the old mines.
0:35:30 > 0:35:32This one seems to be OK,
0:35:32 > 0:35:35but if you are thinking of buying a house
0:35:35 > 0:35:37that you know was an old mining area,
0:35:37 > 0:35:42check the legal pack, see if there is a mining report in there.
0:35:42 > 0:35:45If there isn't, get one done.
0:35:45 > 0:35:49Because a lot of lenders are quite dubious to lend people money
0:35:49 > 0:35:52to buy houses in areas like this.
0:35:52 > 0:35:54What I would suggest is, just do your research.
0:35:54 > 0:35:57And, please, read the legal pack.
0:35:58 > 0:36:01I've got a good feeling about this property,
0:36:01 > 0:36:03but we've invited along a representative
0:36:03 > 0:36:06from the auction house who sold it to give us his thoughts.
0:36:08 > 0:36:10First impressions are it's a very well proportioned
0:36:10 > 0:36:13three-bedroom property. Could do with some off-road parking
0:36:13 > 0:36:15to the front and a nice rear garden at the back,
0:36:15 > 0:36:17so...ideally suit families within the area.
0:36:19 > 0:36:23How much does he think would need to be spent on this refurbishment?
0:36:23 > 0:36:25The works involved would be somewhere within the region
0:36:25 > 0:36:27of £5,000 to complete.
0:36:27 > 0:36:29Refurbished to a reasonable standard,
0:36:29 > 0:36:33what could the house resell for on the current market?
0:36:33 > 0:36:35Sale for a three-bed house in the area,
0:36:35 > 0:36:38somewhere within the region of £105,000.
0:36:38 > 0:36:41And if placed on the rental market?
0:36:41 > 0:36:42For a three-bedroom house,
0:36:42 > 0:36:45we would recommend the rental to be somewhere within the region of
0:36:45 > 0:36:47£495 per calendar month.
0:36:47 > 0:36:49And if the house was converted into student accommodation,
0:36:49 > 0:36:53how much could each room let for?
0:36:53 > 0:36:55If the property was converted into a student let,
0:36:55 > 0:37:00we would recommend an asking price of £70 per week, per room.
0:37:01 > 0:37:04I think this is a good, solid house.
0:37:04 > 0:37:05It's in a good location,
0:37:05 > 0:37:08and you've got the university less than a mile away.
0:37:08 > 0:37:10Loads of potential with this project.
0:37:10 > 0:37:13Let's see who fancied it when it went under the hammer.
0:37:15 > 0:37:17Three-bedroom end townhouse,
0:37:17 > 0:37:19gas central heating, UPVC double glazing.
0:37:19 > 0:37:22And we'll say 70,000, start me on this.
0:37:22 > 0:37:2370 on the front row, thank you.
0:37:23 > 0:37:25At £70,000.
0:37:25 > 0:37:30- I'm going once.- The bidding soon got past the guide price of £85,000,
0:37:30 > 0:37:34but bidders slowed things down with £500 increases.
0:37:34 > 0:37:37We rejoin at 93 and a half grand.
0:37:37 > 0:37:3993 and a half.
0:37:39 > 0:37:4194. Half.
0:37:41 > 0:37:4395, sir?
0:37:44 > 0:37:46No? 94 and a half, then.
0:37:46 > 0:37:49On the front row, not going to linger. 95 anywhere else?
0:37:49 > 0:37:54If not, £94,500 once, £94,500 twice...
0:37:54 > 0:37:57Third and final time, £94,500.
0:37:57 > 0:38:00You bought it, madam. Well done.
0:38:00 > 0:38:04# It's a long, long way from home... #
0:38:04 > 0:38:07The successful bidder was Nancy.
0:38:07 > 0:38:10Former electrical engineer Nancy is American,
0:38:10 > 0:38:13but now lives in France with her husband
0:38:13 > 0:38:15and daughters Piper and Naomi.
0:38:15 > 0:38:18I met with Nancy and the girls to find out what their plans were.
0:38:18 > 0:38:20- Nancy.- Hi.- Nice to meet you.
0:38:20 > 0:38:22- Nice to meet you.- And girls.
0:38:22 > 0:38:25Naomi, nice to meet you, too. Piper, good to meet you.
0:38:25 > 0:38:28You brought the weather with you, thank you.
0:38:28 > 0:38:30Tell me first, why did you buy this house?
0:38:30 > 0:38:35Um, I just liked the way that it was, um,
0:38:35 > 0:38:37positioned, it was high up, like, on a hill.
0:38:37 > 0:38:40This street is really nice, it's tree-lined.
0:38:40 > 0:38:41And I think just the location.
0:38:41 > 0:38:44And also, it's close to the university.
0:38:44 > 0:38:46- Close to Keele.- Yeah, exactly.- Oh, and it's close to the university.
0:38:46 > 0:38:48- Yes.- Yeah.- Exactly, which helps. - Yes.
0:38:48 > 0:38:51If that's in your plans, but we'll get to that in a minute.
0:38:51 > 0:38:53What made you get into property?
0:38:53 > 0:38:55Have you always wanted to get into property?
0:38:55 > 0:38:59The weird thing is, my parents never owned a house, ever.
0:38:59 > 0:39:00I actually didn't own a property
0:39:00 > 0:39:03until I was married with children in my 30s.
0:39:03 > 0:39:04And it just sort of hit me.
0:39:04 > 0:39:07I mean, you hear of people getting the property bug.
0:39:07 > 0:39:10From that point on, I just started liking property,
0:39:10 > 0:39:12and then I've been watching your show.
0:39:12 > 0:39:14As many people say. You have so inspired me.
0:39:14 > 0:39:16- Get in there.- It's true, you have so inspired me.
0:39:16 > 0:39:18- Thank you, thank you, we try. - It's so interesting.- Good.
0:39:18 > 0:39:21And over the years, I've just felt more and more confident,
0:39:21 > 0:39:22so, yeah.
0:39:24 > 0:39:27This is only Nancy's second auction purchase,
0:39:27 > 0:39:30and although she might be a relative newcomer to the world
0:39:30 > 0:39:34of property investment, she does have a keen eye for detail.
0:39:34 > 0:39:38For example, did you spot something unusual with the brickwork?
0:39:38 > 0:39:41The brickwork is newer, if you noticed,
0:39:41 > 0:39:43- than the brickwork next door. - Yes.
0:39:43 > 0:39:46And I asked the person that was showing, from the auction,
0:39:46 > 0:39:47"Why's the brickwork newer?"
0:39:47 > 0:39:51And she said that it was at one time a mid-terrace.
0:39:51 > 0:39:53They took off the other house,
0:39:53 > 0:39:57and I think just to be able to make the brickwork uniform,
0:39:57 > 0:39:59they just redid it on...
0:39:59 > 0:40:03I don't know exactly how, but they did the brickwork, that's new.
0:40:03 > 0:40:05OK. So it didn't put you off at all, you're happy?
0:40:05 > 0:40:08- Yeah, it's fine. Got new brickwork! - You've got new brickwork.
0:40:08 > 0:40:16# Everbody's happy nowadays... #
0:40:16 > 0:40:18Top marks for observation,
0:40:18 > 0:40:21and she's also found out there's a flying freehold above
0:40:21 > 0:40:24this communal entrance. But again,
0:40:24 > 0:40:26it's not something she's worried about.
0:40:26 > 0:40:28Actually, my solicitor said that
0:40:28 > 0:40:31if you have an indemnity policy in place -
0:40:31 > 0:40:33which is not a very expensive thing to purchase -
0:40:33 > 0:40:36then that will cover that extra portion
0:40:36 > 0:40:37of the home that doesn't belong to you.
0:40:37 > 0:40:41It will cover that if somebody else wants to buy it
0:40:41 > 0:40:43and needs a mortgage and the mortgage company says,
0:40:43 > 0:40:44- "You know, hold on..."- Yes, yes.
0:40:44 > 0:40:46"..you've got to own all of the property",
0:40:46 > 0:40:49- it's not an issue.- Tell me what you're going to do to the property.
0:40:49 > 0:40:51Originally, what I wanted to do was buy this, do it up,
0:40:51 > 0:40:52extend it out the back.
0:40:52 > 0:40:54- Yes.- Make it big, open-plan.
0:40:54 > 0:40:58- Yes.- Even possibly go up into the loft and do a four-bedroom.
0:40:58 > 0:41:01But I got some estate agents in,
0:41:01 > 0:41:03and they both said the best that you're going to be able to
0:41:03 > 0:41:05- get out of it is 110.- OK.
0:41:05 > 0:41:07And I thought, "That's just not..."
0:41:07 > 0:41:10- That's... Yeah.- I'm going to be at a loss at that point.
0:41:10 > 0:41:12They said it's better as a student let.
0:41:14 > 0:41:18Nancy had originally set her budget at 40 grand to do this work,
0:41:18 > 0:41:23and that would have taken her total investment to nearly £135,000.
0:41:23 > 0:41:26But since the maths didn't stack up, she's changed her plans.
0:41:26 > 0:41:31What we're thinking of doing is creating the lounge into a bedroom,
0:41:31 > 0:41:35a fourth bedroom. I don't think, because we have a big kitchen diner,
0:41:35 > 0:41:38that they need yet another reception area.
0:41:38 > 0:41:40So this, hopefully, can be turned into a bedroom.
0:41:40 > 0:41:43To do that, we need to block the current entrance
0:41:43 > 0:41:47from the lounge into the kitchen diner,
0:41:47 > 0:41:50open up from what would be created, a new hallway or corridor,
0:41:50 > 0:41:54open up an entryway into the kitchen diner.
0:41:54 > 0:41:58- OK, got you.- There is a little utility cupboard, a WC and so forth.
0:41:58 > 0:42:01The problem is that a lot of that's structural,
0:42:01 > 0:42:03and I just had a builder in yesterday.
0:42:03 > 0:42:06Anything that is beyond a three-metre RSJ,
0:42:06 > 0:42:08you have to get planning permission in,
0:42:08 > 0:42:09and that can take who knows how long.
0:42:09 > 0:42:11- Yes.- And I don't have that much time.
0:42:11 > 0:42:14- And that's time, isn't it? - Because I only have two months.
0:42:14 > 0:42:16So, over the summer, for the children's sake,
0:42:16 > 0:42:19I'm going to have to return to France and back to school.
0:42:19 > 0:42:23So we decided not to go that route, and those lovely little, you know,
0:42:23 > 0:42:25areas back there will have to stay.
0:42:25 > 0:42:29- We may be able to open up the pantry.- Yes.
0:42:29 > 0:42:32Another entryway, so that, essentially,
0:42:32 > 0:42:34you'll have a corridor starting from the front...
0:42:34 > 0:42:36- All the way to the back. - ..going down to the rear back.- OK.
0:42:36 > 0:42:39- So at least there'll be a little bit more freedom.- Yes.
0:42:39 > 0:42:41And flow as well. And flow as well.
0:42:41 > 0:42:43- Exactly, exactly. - So, in regards your budget,
0:42:43 > 0:42:45to do all that work that you've told me,
0:42:45 > 0:42:49- what is your budget?- I'm thinking, realistically, maybe about 20,000.
0:42:49 > 0:42:51- OK.- Give or take.- Listen, good luck.
0:42:51 > 0:42:53All of you, good luck.
0:42:53 > 0:42:55Naomi, good luck. Nancy, I wish you all the best.
0:42:55 > 0:42:58Thank you. And, Piper, you can be the boss, OK?
0:42:58 > 0:43:00SHE LAUGHS Good on you.
0:43:00 > 0:43:02So Nancy has done her research,
0:43:02 > 0:43:04and she's going to go down the student let route,
0:43:04 > 0:43:08which I think is spot-on for two very good reasons.
0:43:08 > 0:43:11The first one being, she's going to be using half
0:43:11 > 0:43:12of her original budget,
0:43:12 > 0:43:16and she's going to be getting a better return on her money.
0:43:16 > 0:43:20Now, for someone with Nancy's background, it's not rocket science.
0:43:20 > 0:43:23You can find out how she gets on later in the programme.
0:43:27 > 0:43:29Well, we've seen how developer number one got on.
0:43:29 > 0:43:31What about number two and three?
0:43:31 > 0:43:35Yes, will they be teacher's pets or sent to the headmaster's office?
0:43:35 > 0:43:38Ha-ha. Let's find out.
0:43:38 > 0:43:40It's time to return to north Birmingham,
0:43:40 > 0:43:42where, earlier in the show,
0:43:42 > 0:43:47I took a trip back to nature on this vacant plot in Handsworth.
0:43:47 > 0:43:52# The birds and the bees are flying in the trees... #
0:43:52 > 0:43:55The birds and the bees would have to vacate this corner of Birmingham,
0:43:55 > 0:43:58because at first glance, with a guide price of £40,000,
0:43:58 > 0:44:03this appeared to be an ideal opportunity for a developer.
0:44:03 > 0:44:04But buyer beware.
0:44:04 > 0:44:09This land was for sale minus the all-important planning permission.
0:44:09 > 0:44:13And there were local market conditions to consider, too.
0:44:13 > 0:44:14Well, unfortunately,
0:44:14 > 0:44:18the resale market around here is very depressed at the moment.
0:44:18 > 0:44:22So it's unlikely you're going to be able to sell whatever you build.
0:44:22 > 0:44:26So it's going to really be a buy-to-let investor who does this.
0:44:28 > 0:44:32So, whoever took this on would have to take real care in planning
0:44:32 > 0:44:35the right development, at the right cost, aimed at the right market.
0:44:37 > 0:44:41And it was business partners Gurmit and Hamej
0:44:41 > 0:44:44who paid £46,000 for this site.
0:44:44 > 0:44:46They were on a bit of a buying spree,
0:44:46 > 0:44:50as they purchased the land across the road at the very same auction.
0:44:50 > 0:44:54Came to buy a plot opposite, expecting to pay 100,000.
0:44:54 > 0:44:56- We bought it for 64.- 64.
0:44:56 > 0:44:57Buy one, one free.
0:44:57 > 0:44:58ALL LAUGH
0:44:58 > 0:45:02Their plans were a bit sketchy for this side of the street,
0:45:02 > 0:45:03but one thing was for sure...
0:45:03 > 0:45:07We're going to build at least two houses.
0:45:07 > 0:45:11But if we can get more small houses, for letting it,
0:45:11 > 0:45:12it would be good for us.
0:45:15 > 0:45:17That was over five years ago.
0:45:17 > 0:45:19Have their plans come to fruition,
0:45:19 > 0:45:23or have Gurmit and Hamej allowed the grass to grow under their feet?
0:45:23 > 0:45:24We're back to find out.
0:45:26 > 0:45:28# You ain't seen nothing yet
0:45:28 > 0:45:31# B-b-b-baby, you just ain't seen nothing yet
0:45:31 > 0:45:33# You need educatin'! #
0:45:33 > 0:45:38Well, no houses to speak of, but there are signs that, finally,
0:45:38 > 0:45:39things have started to happen.
0:45:39 > 0:45:43Planning permission has been granted for three three-bedroom houses,
0:45:43 > 0:45:45a three-bed detached to the front of the site
0:45:45 > 0:45:49and two three-bed semidetached at the back.
0:45:49 > 0:45:52Better than we thought. We thought we might only get two houses,
0:45:52 > 0:45:54but we got three instead of two.
0:45:54 > 0:45:57This is the ground floor, lounge,
0:45:57 > 0:46:00kitchen diner and toilet at the back.
0:46:00 > 0:46:02And garden is at the rear.
0:46:03 > 0:46:08Upstairs, three bedrooms, one with en suite.
0:46:08 > 0:46:10Nice, big three bedrooms.
0:46:12 > 0:46:15The plans look good on paper, and work has started
0:46:15 > 0:46:19on the semidetached houses, but one thing is missing from this set-up.
0:46:19 > 0:46:22Gurmit and Hamej have parted ways.
0:46:22 > 0:46:26# Breaking up is hard to do... #
0:46:26 > 0:46:28That was my other partner, Hamej.
0:46:28 > 0:46:32We're still friends, but he has nothing more to do with this plot.
0:46:32 > 0:46:35With Hamej bowing out of the project,
0:46:35 > 0:46:37Gurmit has recruited his son Inderjit
0:46:37 > 0:46:40to help with this property development business.
0:46:40 > 0:46:42I can't go on forever.
0:46:42 > 0:46:46I have to bring my grandson and Inderjit into it
0:46:46 > 0:46:49to make it a bit more interesting,
0:46:49 > 0:46:54and hopefully I carry on with my other portfolio.
0:46:55 > 0:46:58That's all for the future, but what about the here and now?
0:46:58 > 0:47:01How much longer will Gurmit need to complete this built?
0:47:03 > 0:47:05Hopefully, about six months should be enough.
0:47:05 > 0:47:08But tomorrow, we've got the contractors coming in.
0:47:08 > 0:47:12They will finish it, bring it up to damp course,
0:47:12 > 0:47:15and then we get on with the drainage.
0:47:15 > 0:47:19And after drainage, order some block and beams.
0:47:19 > 0:47:21And put the floor in.
0:47:21 > 0:47:27And, hopefully, within two to three weeks, we'll start the next stage.
0:47:27 > 0:47:29And what state are the finances in?
0:47:29 > 0:47:33Five years ago, Gurmit was planning to spend
0:47:33 > 0:47:36between £140,000 and £180,000 on developing this site.
0:47:37 > 0:47:40Up to now, will we've spent approximately 20,000
0:47:40 > 0:47:45from...the start to this level.
0:47:45 > 0:47:51We're hoping to get them finished within 250 to 300,000.
0:47:51 > 0:47:55That is a huge leap in costs, but Gurmit will have three houses,
0:47:55 > 0:47:56one of them detached.
0:47:56 > 0:47:58From the outset, this development required
0:47:58 > 0:48:01careful planning and careful spending.
0:48:01 > 0:48:03Will it pay off for Gurmit?
0:48:05 > 0:48:09We asked two local property experts to have a look around
0:48:09 > 0:48:12and give us their verdict.
0:48:12 > 0:48:15Obviously, modern new-build properties in this location
0:48:15 > 0:48:17is going to be more attractive
0:48:17 > 0:48:19because it's normally an area of
0:48:19 > 0:48:21traditional Victorian or Edwardian
0:48:21 > 0:48:23two and three-bedroom terraced houses.
0:48:23 > 0:48:26With regards to the spec and the look and the finish,
0:48:26 > 0:48:28I'd assume that he should keep it traditional
0:48:28 > 0:48:29and in keeping with the rest of the area,
0:48:29 > 0:48:31as regards the outside of the property.
0:48:31 > 0:48:34The inside needs to be as high spec as possible.
0:48:34 > 0:48:36Gurmit has squeezed an extra unit
0:48:36 > 0:48:40onto this modest-sized plot - any concerns?
0:48:40 > 0:48:42If I was going to do something different,
0:48:42 > 0:48:45I would have probably put two decent-sized houses.
0:48:45 > 0:48:47From what we can see from the plans,
0:48:47 > 0:48:51I would have probably recommended a bit more open-plan living
0:48:51 > 0:48:53to meet modern requirements,
0:48:53 > 0:48:56and I certainly would have put French doors into the rear garden.
0:48:56 > 0:48:58And so to valuations.
0:48:58 > 0:49:02With Gurmit's costs set to rise to as much as 300,000,
0:49:02 > 0:49:04he'll be looking for some good news here.
0:49:04 > 0:49:06First, resale values.
0:49:06 > 0:49:09The three-bedroom semi at the back, I'd value at around 135,000
0:49:09 > 0:49:12depending on the spec that he finished it to.
0:49:12 > 0:49:15The property at the front, I'd value at around 135 to £140,000
0:49:15 > 0:49:16if it was a detached property.
0:49:16 > 0:49:19The three-bedroom semis I would actually value
0:49:19 > 0:49:22between £130,000 and £135,000.
0:49:22 > 0:49:27And for the three-bedroom detached, between £140,000 and £145,000.
0:49:27 > 0:49:29Based on the higher figures,
0:49:29 > 0:49:33Gurmit could sell these houses for a total of 415,000,
0:49:33 > 0:49:38giving him a pre-tax profit of around 115,000.
0:49:38 > 0:49:42Bit down. Don't think much of that, but I reckon they should be
0:49:42 > 0:49:47a bit more to 175, 180.
0:49:47 > 0:49:50Gurmit's not impressed with those sales valuations.
0:49:50 > 0:49:53But what about rental values?
0:49:53 > 0:49:54For a three-bedroom semi,
0:49:54 > 0:49:59I would estimate a rental of between £600 and £650 per calendar month.
0:49:59 > 0:50:01And for a three-bedroom detached,
0:50:01 > 0:50:04between £650 and £700 per calendar month.
0:50:04 > 0:50:06For the two three-bedroom semis at the back,
0:50:06 > 0:50:08you're looking around 650 to 700 per calendar month.
0:50:08 > 0:50:10And for the three-bedroom detached at the front,
0:50:10 > 0:50:13you're looking 700 to 750 per calendar month.
0:50:13 > 0:50:17The top figure would give a combined rental of £2,150 per calendar month,
0:50:17 > 0:50:23which equates to a return on a £300,000 investment of 8.6%.
0:50:23 > 0:50:26That's about right. We're quite happy with that.
0:50:26 > 0:50:30Gurmit plans to add these houses to his rental portfolio once
0:50:30 > 0:50:34they're completed. So after five years - and counting -
0:50:34 > 0:50:37does Gurmit have any advice for the viewer watching?
0:50:37 > 0:50:42I'd tell them to get out of bed and get on with it!
0:50:47 > 0:50:52We return now to the bustling town of Newcastle-under-Lyme,
0:50:52 > 0:50:55where earlier I took a look at this three-bed end terrace house
0:50:55 > 0:50:56guided at 85 grand.
0:50:58 > 0:51:02With Keele University a short distance up the road,
0:51:02 > 0:51:05I thought the best option for this property seemed obvious -
0:51:05 > 0:51:07convert it into student accommodation.
0:51:07 > 0:51:11Why not think about creating another bedroom downstairs?
0:51:11 > 0:51:12Get some students in here,
0:51:12 > 0:51:15and hopefully you can maximise your money.
0:51:16 > 0:51:20It was Nancy who successfully bid 94 and a half grand at auction,
0:51:20 > 0:51:24and initially, she had big plans for this place.
0:51:24 > 0:51:27Originally, what I wanted to do was buy this, do it up,
0:51:27 > 0:51:30- extend it out the back. - Yes.- Make it big, open-plan.
0:51:30 > 0:51:34- Yes.- Even possibly go up into the loft and do a four-bedroom.
0:51:34 > 0:51:39However, some sobering advice from local estate agents soon
0:51:39 > 0:51:41- changed her mind.- And they both said the best that
0:51:41 > 0:51:44you're going to be able to get out of it is 110.
0:51:44 > 0:51:46And I thought that that's just not...
0:51:46 > 0:51:48- Yeah.- ..I'm going to be at a loss at that point.
0:51:50 > 0:51:53So Nancy put her backup plan into operation,
0:51:53 > 0:51:56which was to convert the house into student accommodation.
0:51:58 > 0:52:01Living in France, the family only had
0:52:01 > 0:52:03a two-month window before the kids
0:52:03 > 0:52:04had to go back to school,
0:52:04 > 0:52:09so it was straight to work and spending that 20 grand budget.
0:52:09 > 0:52:12We've come back ten weeks later to see how they got on.
0:52:23 > 0:52:26It looks like this has been a pretty successful conversion.
0:52:28 > 0:52:32The main task for the builder was to change the lounge into a bedroom.
0:52:34 > 0:52:36This has been achieved by blocking off the existing door
0:52:36 > 0:52:41to the kitchen and adding a corridor for separate access.
0:52:41 > 0:52:42It's a bit of an experiment,
0:52:42 > 0:52:46because usually, student lets will have a communal area
0:52:46 > 0:52:49and then the kitchen. But because we had a large enough kitchen,
0:52:49 > 0:52:52I figured that could be the communal space.
0:52:52 > 0:52:56And in my experience, a lot of teenagers live in their room anyway,
0:52:56 > 0:52:59at least at my house they do! They never venture into the lounge.
0:52:59 > 0:53:03So I thought it might be better to have a nice-sized bedroom
0:53:03 > 0:53:06instead of a separate lounge,
0:53:06 > 0:53:09and then let the kitchen be that communal space.
0:53:09 > 0:53:13Again, it's got the television and a nice size table and chairs.
0:53:15 > 0:53:17The main bedroom upstairs is a work in progress,
0:53:17 > 0:53:20but the other two are ready to let.
0:53:20 > 0:53:23The bathroom has been completely upgraded,
0:53:23 > 0:53:25with a bath that's big enough
0:53:25 > 0:53:27to accommodate those unexpected last-minute guests.
0:53:27 > 0:53:30You know what students are like.
0:53:32 > 0:53:36Apart from some painting, the project is almost complete,
0:53:36 > 0:53:40and they've managed this all within their ten-week timescale.
0:53:40 > 0:53:43But what gave them the biggest headache?
0:53:43 > 0:53:45My husband, oh, had the gruelling job
0:53:45 > 0:53:48of stripping down the skirting boards.
0:53:48 > 0:53:50There was like, I don't know,
0:53:50 > 0:53:54maybe a centimetre thick of paint that could stand up on its own.
0:53:54 > 0:53:57So he was going through every single room, stripping down the skirting.
0:53:57 > 0:53:59But after that, after the first month,
0:53:59 > 0:54:01we were really clearing a lot out.
0:54:01 > 0:54:04There was a lot of furniture and bits and bobs here.
0:54:04 > 0:54:05That was pretty much it.
0:54:05 > 0:54:09A lot of it was just finding the tradesmen to do the job.
0:54:09 > 0:54:11That's what took the longest time.
0:54:13 > 0:54:17In the back garden, everything's been cut back and tidied,
0:54:17 > 0:54:22and there's even a lockable shed for items too big to be stored inside.
0:54:22 > 0:54:24All that's required now is some barbecue weather.
0:54:25 > 0:54:28Nancy has kept to her ten-week timescale,
0:54:28 > 0:54:29but what about the budget?
0:54:31 > 0:54:33I'd say we're on budget, 20,000.
0:54:33 > 0:54:34I haven't tallied up,
0:54:34 > 0:54:38because we're still in the midst of the renovation,
0:54:38 > 0:54:41but I'd say about 20,000 sounds right.
0:54:41 > 0:54:44Ideally, we should be asking a couple of students round
0:54:44 > 0:54:46to see what they think of this place.
0:54:46 > 0:54:48But, of course, they'll be lying in bed under a duvet,
0:54:48 > 0:54:50watching a certain property show, obviously.
0:54:50 > 0:54:53Only kidding! We know you're working.
0:54:56 > 0:54:59Instead, we've invited two local property experts
0:54:59 > 0:55:02along to cast their eye over Nancy's refurbishment.
0:55:04 > 0:55:08Erm, it's a really, really lovely job that's been done to it.
0:55:08 > 0:55:12It's obviously been prepared for student let.
0:55:12 > 0:55:14And they're going to be lucky students.
0:55:14 > 0:55:17It's been done very, very well indeed.
0:55:17 > 0:55:21I'm very impressed. It's nice to see somebody go to such an effort
0:55:21 > 0:55:23when developing a property.
0:55:23 > 0:55:27It's geared up for letting out to students.
0:55:27 > 0:55:29And there's a lot of space.
0:55:31 > 0:55:33Talking of space, do the agents think
0:55:33 > 0:55:37that Nancy's open-plan living and kitchen area fits the bill?
0:55:37 > 0:55:39I think the kitchen is adequate,
0:55:39 > 0:55:42because I do feel that the bedrooms are big enough for the students
0:55:42 > 0:55:45to study in, and to a degree, to socialise in.
0:55:45 > 0:55:47The kitchen is the only living space.
0:55:47 > 0:55:50It is a little on the small side.
0:55:50 > 0:55:52We're going to have four students in here.
0:55:52 > 0:55:55Inevitably, that probably means a lot more bodies than that
0:55:55 > 0:55:58at certain times. It's going to be tight.
0:55:59 > 0:56:03Nancy held back on extending this property as a family home.
0:56:03 > 0:56:06This is because of the advice she got from the estate agents
0:56:06 > 0:56:09about the maximum sales price achievable.
0:56:09 > 0:56:11Is that advice borne out in the figures?
0:56:11 > 0:56:16The value for this property would be in the region of 110,000.
0:56:16 > 0:56:20I would recommend a marketing figure in the region
0:56:20 > 0:56:23of £115,000 to £120,000.
0:56:23 > 0:56:25That's what we were expecting,
0:56:25 > 0:56:28and that is why we didn't do a lot of the renovations
0:56:28 > 0:56:31that originally we were going to do with extensions,
0:56:31 > 0:56:32because of the area.
0:56:32 > 0:56:36So, yeah, that's fine, and we don't intend to sell anyway.
0:56:37 > 0:56:41Nancy has invested 114 and a half grand in this project.
0:56:41 > 0:56:43And even that top figure would leave her
0:56:43 > 0:56:47with just a five and a half grand pre-tax profit.
0:56:47 > 0:56:51So was changing her plan to student rental the right decision?
0:56:51 > 0:56:53How much rent could she expect to achieve?
0:56:54 > 0:56:57If we were to let the property in the student market,
0:56:57 > 0:57:02I would anticipate a weekly figure of around £80,
0:57:02 > 0:57:09which would equate to approximately £1,300 per calendar month.
0:57:09 > 0:57:13You are looking, per room, at this standard,
0:57:13 > 0:57:16it's going to be somewhere between £80 and £90 per room.
0:57:16 > 0:57:18So you're probably looking at, overall,
0:57:18 > 0:57:22somewhere in the region of 1,200 to £1,300 per month.
0:57:22 > 0:57:25That's bang-on, that's just what were expecting, exactly.
0:57:25 > 0:57:31£1,300 per month is the equivalent of a yield of just over 13.5%.
0:57:31 > 0:57:34But that would assume full occupancy over the whole year,
0:57:34 > 0:57:38which won't be the case if it's student tenants.
0:57:38 > 0:57:41This house is almost ready to start earning some income for Nancy,
0:57:41 > 0:57:45so what does she feel she's learned from this project?
0:57:45 > 0:57:47You have to be careful with your ceiling price.
0:57:47 > 0:57:50We got caught out on this one, but again, thankfully, you know,
0:57:50 > 0:57:51we have an alternate route.
0:57:51 > 0:57:53But if somebody does not want to get into rentals,
0:57:53 > 0:57:56that could have been a real big problem.
0:57:56 > 0:58:00So just be mindful of those max values when you're going to auction.
0:58:03 > 0:58:05You know, it's always great to see the end result
0:58:05 > 0:58:09of a top property renovation. It's really, really satisfying.
0:58:09 > 0:58:13I know, but you can never take things for granted, Lucy.
0:58:13 > 0:58:14So many things that could go wrong,
0:58:14 > 0:58:16and that's what makes it so exciting!
0:58:16 > 0:58:18Yes, join us next time for more highlights
0:58:18 > 0:58:20and low lights here on Homes Under The Hammer.
0:58:20 > 0:58:22- Goodbye.- Goodbye.- Goodbye.