0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:05All sorts of people buy property at auction
0:00:05 > 0:00:08and the auction house attracts people from all walks of life.
0:00:08 > 0:00:10Yes, and the properties themselves
0:00:10 > 0:00:12are many and varied.
0:00:12 > 0:00:15There's so many things to look forward to,
0:00:15 > 0:00:17buying your home under the hammer.
0:00:43 > 0:00:46Well, the kind of properties at auction are many and varied.
0:00:46 > 0:00:49I feel like I've seen them all over the years,
0:00:49 > 0:00:52from former public toilets to water towers.
0:00:52 > 0:00:55Yes, variety definitely is the spice of life on this show.
0:00:55 > 0:00:57Let's see what's on the menu.
0:00:58 > 0:01:01The property Lucy's at is in Tooting, London,
0:01:01 > 0:01:03and it boasts three rooms.
0:01:03 > 0:01:07We'll find out what "three rooms" exactly are, on the inside.
0:01:08 > 0:01:13It's going to take me a while to look around this nine-bedroom house in Liverpool.
0:01:13 > 0:01:16It looks some size, so I'm going to get started.
0:01:18 > 0:01:20And I'm in Silverdale, Newcastle-under-Lyme,
0:01:20 > 0:01:22to see a three-bedroom semi
0:01:22 > 0:01:25that's been classified as a dangerous house.
0:01:25 > 0:01:28It doesn't look to be in too good condition from the outside.
0:01:30 > 0:01:33All these properties have been sold at auction, and we'll find out
0:01:33 > 0:01:37who bought them, and what they paid when they went under the hammer.
0:01:37 > 0:01:39HAMMER COMES DOWN
0:01:43 > 0:01:47Lucy's in Tooting, a popular area of southwest London,
0:01:47 > 0:01:50famous for its Lido and restaurants, among other things.
0:01:50 > 0:01:53But there is a less famous Tooting,
0:01:53 > 0:01:5754 million kilometres away on Mars.
0:01:57 > 0:02:01Yep, a giant crater there is also called Tooting.
0:02:01 > 0:02:05Thankfully, Lucy's sat nav took her to the one on THIS planet.
0:02:07 > 0:02:08Well, as you can hear and see
0:02:08 > 0:02:13it's a busy road, and not everybody will enjoy overlooking a cemetery.
0:02:13 > 0:02:16But it's on the bus route, and you have amenities nearby.
0:02:16 > 0:02:19Well, I'm here to see a first-floor flat
0:02:19 > 0:02:22and it had a guide price of £210,000 plus.
0:02:22 > 0:02:26It's described as having three rooms and a kitchen and a bathroom.
0:02:26 > 0:02:30We'll find out what "three rooms" exactly are, on the inside.
0:02:36 > 0:02:39So, what have we got when you reach the top of the stairs?
0:02:39 > 0:02:40Well, there's the kitchen.
0:02:40 > 0:02:44The bathroom leads off, so not ideal straight away.
0:02:44 > 0:02:46And the layout just gets a little bit more unusual,
0:02:46 > 0:02:49the further through the flat you go.
0:02:49 > 0:02:50It's not really working, is it,
0:02:50 > 0:02:53because what do they mean by "three rooms"?
0:02:53 > 0:02:56Well, here's one of them. I think that's the lounge.
0:02:56 > 0:03:00And then, through here, well, here are the two other rooms.
0:03:00 > 0:03:02There's one of them down there.
0:03:02 > 0:03:06There's this unusual little corridor area which is quite pointless.
0:03:06 > 0:03:10And, well, a partitioned wall into a tiny little bedroom.
0:03:10 > 0:03:14So what you've got is two very, very small rooms,
0:03:14 > 0:03:18which are pretty useless, and one other room through there.
0:03:18 > 0:03:22So, straightaway, I just want to knock all this partitioning down
0:03:22 > 0:03:25and that means that you've initially just got
0:03:25 > 0:03:27a one-bedroom flat.
0:03:27 > 0:03:28But it will be a nice one-bedroom flat
0:03:28 > 0:03:31because you could have the lounge, this bedroom here,
0:03:31 > 0:03:33and the kitchen and bathroom down there.
0:03:33 > 0:03:35So this is a case in point, people -
0:03:35 > 0:03:40always view an auction property before bidding at an auction.
0:03:40 > 0:03:43We're always banging on about it, but you know we're right.
0:03:43 > 0:03:45Homework, homework and more homework.
0:03:47 > 0:03:51Now, if you were to reconfigure this flat and just have one bedroom,
0:03:51 > 0:03:55there might be space for a second up in the loft.
0:03:55 > 0:03:57But that means you'll need a bigger budget,
0:03:57 > 0:03:58and time to apply to the planning department
0:03:58 > 0:04:01and get permission from the freeholder.
0:04:01 > 0:04:03You might not even own the loft space.
0:04:04 > 0:04:07Now, back to Lucy.
0:04:07 > 0:04:08Lucy?
0:04:08 > 0:04:09Lucy!
0:04:10 > 0:04:13Now... Get out of the way!
0:04:13 > 0:04:15Oh!
0:04:15 > 0:04:17You might wonder what I'm doing rustling around in the bushes,
0:04:17 > 0:04:20but that's because I've got some great news.
0:04:20 > 0:04:23This flat comes with this garden,
0:04:23 > 0:04:26and there is a fair old garden back there.
0:04:26 > 0:04:27Yes, it needs clearing,
0:04:27 > 0:04:30and I've been trying to figure out how long the actual garden is.
0:04:30 > 0:04:32It's about ten fence panels' worth.
0:04:32 > 0:04:34So it does go on and on.
0:04:34 > 0:04:36It needs to get this shed out of the way
0:04:36 > 0:04:39because it just takes up so much of the space, but I'm so pleased that
0:04:39 > 0:04:43this flat has this outside space because in my mind,
0:04:43 > 0:04:47it's going to add that extra bit of value that this flat needs.
0:04:47 > 0:04:50To find out exactly what kind of value that could add,
0:04:50 > 0:04:52we've asked along a local estate agent to get his opinion.
0:04:56 > 0:04:59That garden adds a lot of value.
0:04:59 > 0:05:00People in London, we don't get a lot of sun,
0:05:00 > 0:05:02but we love outdoor spaces
0:05:02 > 0:05:05and I think the size of it is pretty amazing,
0:05:05 > 0:05:07considered the property that it is.
0:05:07 > 0:05:09So, yeah, I think that does add value.
0:05:09 > 0:05:11With a figure in mind,
0:05:11 > 0:05:15I would say in the region of about 15 or 20,000 on the guide price.
0:05:17 > 0:05:21This green space makes this ripe for development and reconfiguration,
0:05:21 > 0:05:23but there is a major catch.
0:05:23 > 0:05:26It comes with a short lease, with only 58 years remaining.
0:05:28 > 0:05:31The short lease can be a problem for buyers.
0:05:31 > 0:05:35Being a short lease it is quite hard to get a mortgage from lenders.
0:05:35 > 0:05:39So if you're looking to put this property onto the sales market,
0:05:39 > 0:05:42it would have to be a cash buyer that would be willing to buy it.
0:05:42 > 0:05:44Now, with the property prices in this area,
0:05:44 > 0:05:46that would be extremely difficult.
0:05:46 > 0:05:51This would decrease the property of the value by about £25,000-£50,000.
0:05:53 > 0:05:55So, this flat adds value with a garden
0:05:55 > 0:05:57but then the short lease takes it away.
0:05:57 > 0:05:59So if the lease was extended
0:05:59 > 0:06:03and the flat returned to a good spec one-bed, what could this property,
0:06:03 > 0:06:05guided at £210,000 plus, be worth?
0:06:11 > 0:06:13If it was to go into a one-bedroom flat,
0:06:13 > 0:06:17this property could sell for £390,000 to £410,000.
0:06:17 > 0:06:19No. This flat is not without its issues.
0:06:19 > 0:06:22The layout doesn't work and it's in poor condition,
0:06:22 > 0:06:24not to mention that short lease.
0:06:24 > 0:06:26Still, if you can see past that, well,
0:06:26 > 0:06:28this could be a very good investment.
0:06:28 > 0:06:31Let's see who agreed when it went to auction.
0:06:31 > 0:06:34Very popular location, I know this area.
0:06:34 > 0:06:37So, first-floor flat, great potential.
0:06:37 > 0:06:39Kick off at 200 on this?
0:06:39 > 0:06:43200. 205? 205 anywhere? 205.
0:06:45 > 0:06:46210.
0:06:46 > 0:06:49215.
0:06:49 > 0:06:51220.
0:06:51 > 0:06:53225.
0:06:53 > 0:06:57Two bidders at the back of the room went toe-to-toe for this lot.
0:06:57 > 0:06:59We rejoin at £321,000.
0:07:01 > 0:07:02321.
0:07:02 > 0:07:05Over here, 321. 323.
0:07:05 > 0:07:07Anyone else? If you're all done...
0:07:08 > 0:07:11Sold, 321. Good buy, well done.
0:07:11 > 0:07:13Are you going to go up into the loft?
0:07:13 > 0:07:16Yes? Yeah!
0:07:16 > 0:07:19Hey, auctioneer, no spoilers, please!
0:07:19 > 0:07:23Well, the successful bidder, who paid 321,000, was Charlie.
0:07:23 > 0:07:26He said he wanted to go "up in the loft" at auction.
0:07:26 > 0:07:28Let's see what his thoughts are now.
0:07:30 > 0:07:33Charlie, lovely meeting you today. Thanks for coming along.
0:07:33 > 0:07:35What's the story behind you wanting to buy this?
0:07:35 > 0:07:38Well, about two years ago, I bought a house in Brixton, in London.
0:07:38 > 0:07:42It had loads of problems with it, leases...and basically I managed to
0:07:42 > 0:07:44sort out the problems over a couple of years
0:07:44 > 0:07:48and it's gone up in value a lot. And ended up being a good deal.
0:07:48 > 0:07:51And I was sort of slaving away on selling popcorn for a company.
0:07:51 > 0:07:55I like the job, but I was like, this is not what I really want to be.
0:07:55 > 0:07:57- So, you were selling popcorn? - I was selling popcorn, yes.
0:07:57 > 0:07:59What, literally, selling it to people?
0:07:59 > 0:08:02No, I wasn't in a cinema with a little thing, I was...
0:08:02 > 0:08:04- Like a sales manager? - Yeah, a sales manager.
0:08:05 > 0:08:08From the KERNEL of an idea to quitting his job,
0:08:08 > 0:08:10and inspired by the success of his Brixton house,
0:08:10 > 0:08:12Charlie started working as a handyman
0:08:12 > 0:08:15to gain practical skills before buying this place.
0:08:17 > 0:08:19So, what are you going to do to this flat?
0:08:19 > 0:08:22I would be quite intrigued to find out how you're going to change
0:08:22 > 0:08:25the layout. Because it's a little bit awkward, isn't it?
0:08:25 > 0:08:28Yes. Initially, I was literally going to make it into a really
0:08:28 > 0:08:29nice one-bed and rent it out.
0:08:29 > 0:08:34And then, because I didn't think I'd be able to get planning permission,
0:08:34 > 0:08:37and now I've looked at it and I think I CAN get planning permission to go into the loft.
0:08:37 > 0:08:39So, the first thing is,
0:08:39 > 0:08:42this will become a bedroom and it's a reception room at the moment.
0:08:42 > 0:08:45In the back of the house, where the kitchen and the bathroom is,
0:08:45 > 0:08:48- that will all be ripped out and become a second bedroom.- OK.
0:08:48 > 0:08:50And then at the front,
0:08:50 > 0:08:51I'm going to take out those lovely walls
0:08:51 > 0:08:53that someone put up about two months ago.
0:08:53 > 0:08:55They're going to be ripped down,
0:08:55 > 0:08:58and then it's going to be made into a large kitchen diner at the front of the house.
0:08:58 > 0:09:01And then, hopefully, if we get the planning permission,
0:09:01 > 0:09:06upstairs will be a bedroom and a bathroom.
0:09:06 > 0:09:09I mean, I think if you do manage to turn this into a three-bedder,
0:09:09 > 0:09:12it's the little pot of gold at the end of the rainbow,
0:09:12 > 0:09:13you've done very well.
0:09:13 > 0:09:18What about the loft space? Because you can't take it as read that you OWN the loft.
0:09:18 > 0:09:22I've read through the list. And I've shown it to a solicitor,
0:09:22 > 0:09:27and they're like, basically you're 95%, you own that loft.
0:09:27 > 0:09:30Is 95% certain enough, though?
0:09:30 > 0:09:31Charlie has been proactive -
0:09:31 > 0:09:34before the auction, he made contact with the freeholder
0:09:34 > 0:09:39to enquire about this, and that much-needed lease extension.
0:09:39 > 0:09:41And he thinks a deal is going to be possible.
0:09:41 > 0:09:43But of course, it will come at a price.
0:09:43 > 0:09:45If he chooses to negotiate there are no rules,
0:09:45 > 0:09:49and the landlord could refuse to extend,
0:09:49 > 0:09:51or charge what he or she wants.
0:09:51 > 0:09:55Alternatively, if Charlie holds on to the property for two years,
0:09:55 > 0:09:59he would have a right under law to add 90 years
0:09:59 > 0:10:01to what is left on the existing lease.
0:10:03 > 0:10:05Of course, the freeholder is still due a payment,
0:10:05 > 0:10:09but there is a formula set to work this out.
0:10:09 > 0:10:10That and the planning issues aside,
0:10:10 > 0:10:13Charlie hopes to get the work done in three months.
0:10:16 > 0:10:19So what sort of budget have you got to do all the budget work here?
0:10:19 > 0:10:21You've got obviously the renewing of the lease,
0:10:21 > 0:10:27which I think will be about £70,000, which is quite chunky,
0:10:27 > 0:10:29but, you know, I think it's reflected in the price.
0:10:29 > 0:10:36Then for all the downstairs, sort of around £10,000,
0:10:36 > 0:10:40and then the loft, I'm sort of... I'm hoping to get it under...
0:10:40 > 0:10:42somewhere between £25,000 and £30,000.
0:10:42 > 0:10:46- OK.- And that's sort of where I'm looking at at the moment.
0:10:46 > 0:10:50So you are looking at potentially doing this up to then sell on?
0:10:50 > 0:10:53Yeah. I'm looking to do up to sell on, but whatever happens
0:10:53 > 0:10:54I'm going to keep it for two years,
0:10:54 > 0:10:57just the way my mortgage is, I've got a fixed rate for two years.
0:10:57 > 0:11:00Anything that you are worried about with having purchased this building?
0:11:00 > 0:11:03- Yeah, the whole thing really! - HE LAUGHS
0:11:03 > 0:11:06You were filling me with confidence. Now you're worrying me!
0:11:06 > 0:11:08Was that all just a load of chat?
0:11:08 > 0:11:10Well, it's just obviously I've never done it before,
0:11:10 > 0:11:12so everything's like...
0:11:12 > 0:11:14- new. Yeah. - LUCY LAUGHS
0:11:14 > 0:11:16You sounded so confident for a minute there.
0:11:16 > 0:11:18"Yeah, I'm going to do this, do that.
0:11:18 > 0:11:19"Oh, actually, it's all worrying me!"
0:11:19 > 0:11:22Yeah. Every single little bit is obviously worrying me because
0:11:22 > 0:11:26I've never done any of it before. And it's all completely new.
0:11:26 > 0:11:31So what did your family think when you decided to sort of give up your proper job, your monthly wage?
0:11:31 > 0:11:33I didn't actually tell them. I just sort of...
0:11:33 > 0:11:36I told them after I'd given up my job.
0:11:36 > 0:11:37It is the second job I've quit,
0:11:37 > 0:11:40and I remember how good it was the first time. I was,
0:11:40 > 0:11:41"I've got to do that again."
0:11:41 > 0:11:45- You've got to try and hold this job then, OK? - This one?- You need to keep this job.
0:11:45 > 0:11:48No, but I will because it's me, you know, it's...
0:11:48 > 0:11:50I can... If I don't, it's...
0:11:50 > 0:11:53I've got a big loan and stuff to deal with,
0:11:53 > 0:11:54so I really need to do it properly.
0:11:54 > 0:11:57Sometimes you've got to take the risk to get the gain,
0:11:57 > 0:12:00and I think that you should take that risk.
0:12:00 > 0:12:01Yeah, because it's...
0:12:01 > 0:12:02Don't tell anyone I said that.
0:12:02 > 0:12:04No!
0:12:04 > 0:12:08- Lovely meeting you.- Brilliant. - Good luck with this whole project. - Thanks. Thanks a lot.
0:12:08 > 0:12:10From popcorn to property.
0:12:10 > 0:12:14Charlie's a brave man, quitting his job and starting afresh.
0:12:14 > 0:12:18He's got his ideas, but there's still a few unknowns here.
0:12:18 > 0:12:20Will he get permission to convert the loft,
0:12:20 > 0:12:23and how quickly will he manage to extend that lease?
0:12:27 > 0:12:31Liverpool's Victorian architecture isn't limited to the city centre.
0:12:32 > 0:12:36Imposing houses in the east are now part of a conservation area.
0:12:37 > 0:12:41Just across the road from Newsham Park, which is just there,
0:12:41 > 0:12:43on this street, which is full of grand houses,
0:12:43 > 0:12:45and it's one of those grand houses
0:12:45 > 0:12:49I'm here to see today, and here it is. It's a bit of a monster.
0:12:49 > 0:12:52And we're only two miles away from the centre of Liverpool as well.
0:12:52 > 0:12:55It's a former care home,
0:12:55 > 0:12:58it's got four floors, and a guide price of £190,000.
0:12:58 > 0:13:01It looks some size, so I'm going to get started.
0:13:01 > 0:13:07# I'll be home, my darling... #
0:13:07 > 0:13:10OK, if you can hear a beeping, that's just the alarm,
0:13:10 > 0:13:12so don't worry about that.
0:13:12 > 0:13:14But look at this flooring. Originally tiled floor,
0:13:14 > 0:13:18very in keeping with the outside of the property as well.
0:13:18 > 0:13:23Really high ceilings, even more detail as well there.
0:13:23 > 0:13:27You've got a really large sort of lounge area to the front
0:13:27 > 0:13:30with a massive bay window, which WOULD be letting light in
0:13:30 > 0:13:34but it's all boarded up, or it's got grilles round the front of it.
0:13:34 > 0:13:37To my right, you've got a big room there with a huge hatch as well,
0:13:37 > 0:13:41I'm pretty sure that is connected to the kitchen.
0:13:41 > 0:13:44You've got stairs going up, stairs going down.
0:13:45 > 0:13:47So, pop pickers,
0:13:47 > 0:13:50we'll start at the bottom and chart this nine-bedder
0:13:50 > 0:13:52all the way to the top.
0:13:52 > 0:13:54MUSIC: Pick Of The Pops Theme
0:13:54 > 0:13:56In the basement, a new entry today,
0:13:56 > 0:13:58floodwater in the laundry
0:13:58 > 0:13:59by the twin toilets.
0:14:01 > 0:14:03Also, at the front of the house,
0:14:03 > 0:14:05the blue storeroom, and a curious black bottle
0:14:05 > 0:14:07by the window.
0:14:08 > 0:14:10Bringing up the rear, it's a peach room
0:14:10 > 0:14:11with dehumidifier.
0:14:14 > 0:14:16Now we're climbing to the ground floor.
0:14:18 > 0:14:20If it's china in your hands you want,
0:14:20 > 0:14:22there's a WC and a wash basin.
0:14:24 > 0:14:26Back at the rear, kitchen, store,
0:14:26 > 0:14:28and I was right about that hatch.
0:14:33 > 0:14:38We're climbing again but the half landings ain't half confusing.
0:14:38 > 0:14:40So on the first floor, and its other half,
0:14:40 > 0:14:42there's two bathrooms and four bedrooms.
0:14:44 > 0:14:48Bedroom number nine has the green, green paint of home.
0:14:48 > 0:14:50Number eight is mellow yellow.
0:14:51 > 0:14:53Seven has got a purple haze.
0:14:55 > 0:14:57Number six is peachy.
0:15:00 > 0:15:03Up the stairs to the top five, just past the shower room,
0:15:03 > 0:15:05number five is pink void.
0:15:07 > 0:15:09Number four is all right
0:15:09 > 0:15:11and staying bright.
0:15:11 > 0:15:13At three, it's lavender blue.
0:15:13 > 0:15:15And two, it's pale pink
0:15:15 > 0:15:16and green skirting.
0:15:16 > 0:15:19And number one, it's blue room
0:15:19 > 0:15:20from up in the rafters.
0:15:22 > 0:15:25One thing I did notice is that this place has got a lift.
0:15:25 > 0:15:27You're probably thinking, fantastic!
0:15:27 > 0:15:30But it doesn't look the newest lift I've seen in some time,
0:15:30 > 0:15:31and it could be a bit of a problem.
0:15:31 > 0:15:35Tenants could get stuck in there, maintenance costs...
0:15:35 > 0:15:38For me, I would make it fire safe, board it up.
0:15:38 > 0:15:40I wouldn't want it being used.
0:15:40 > 0:15:42OK, this used to be a care home,
0:15:42 > 0:15:46so I'm thinking the electrics and the heating will be in good order,
0:15:46 > 0:15:48which is good for your budget.
0:15:50 > 0:15:53I think the bill for rewiring a place of this size
0:15:53 > 0:15:55or putting central heating in
0:15:55 > 0:15:57would dwarf the average refurbishment budget.
0:15:57 > 0:16:00I'd want to know what is causing that basement flooding.
0:16:00 > 0:16:02It might need re-tanking.
0:16:04 > 0:16:07Having walked around this place, a lot of you may be thinking,
0:16:07 > 0:16:09why not turn it into flats?
0:16:09 > 0:16:11And you could turn it into flats, but for me,
0:16:11 > 0:16:15the configuration just doesn't lend itself, and those split levels,
0:16:15 > 0:16:18I think it could be a lot of hard work for little gain.
0:16:18 > 0:16:23Now, for me, this place is screaming out to be a HMO,
0:16:23 > 0:16:25but it has its pros and cons.
0:16:25 > 0:16:28Cons being, you'd need to put fire doors in,
0:16:28 > 0:16:31you'd have to make it safe, bathrooms, kitchens,
0:16:31 > 0:16:35you'd have to apply to get a change of use as well,
0:16:35 > 0:16:37and get a HMO licence.
0:16:37 > 0:16:40And then, you've got to find your tenants
0:16:40 > 0:16:41and you've got to manage them.
0:16:41 > 0:16:43They're just a few cons.
0:16:43 > 0:16:45The pros are - and there's a lot of them
0:16:45 > 0:16:48so I'll just get the most important one -
0:16:48 > 0:16:51is they can be incredibly lucrative, and that's the key.
0:16:52 > 0:16:57HMOs, or houses of multiple occupancy, are common in this area.
0:16:57 > 0:17:01And that's hardly surprising because properties of this size
0:17:01 > 0:17:04aren't normally inhabited by just one family.
0:17:04 > 0:17:06We called in a local estate agent
0:17:06 > 0:17:11to see if he could shed some light on ways of improving the living space.
0:17:11 > 0:17:13There are a number of other additional rooms
0:17:13 > 0:17:15that could be turned into bedrooms.
0:17:15 > 0:17:18It could even make its way up to an 11-bedroom property.
0:17:18 > 0:17:20And that would really maximise the income.
0:17:20 > 0:17:25What income could you expect from a good HMO room?
0:17:25 > 0:17:27An en-suite HMO room in this area,
0:17:27 > 0:17:30I'd be looking to achieve £110 per week.
0:17:30 > 0:17:34With 11 rooms, that could generate an income of 58 grand a year.
0:17:36 > 0:17:39What about reselling the property once it's been refurbished?
0:17:41 > 0:17:43Once this property's been completed and the works have been carried out
0:17:43 > 0:17:48to a high standard, I would expect to achieve a figure of around £300,000.
0:17:48 > 0:17:51It's a popular area, a good location and a good rental income,
0:17:51 > 0:17:54so should be very popular.
0:17:54 > 0:17:56The potential here is huge.
0:17:56 > 0:18:00And whoever got their hands on this is definitely on to a winner.
0:18:00 > 0:18:02Let's find out who that was when it went under the hammer.
0:18:02 > 0:18:05So, 147, we're back off to Liverpool.
0:18:05 > 0:18:08Leasehold semidetached, four-storey building, 14 rooms.
0:18:08 > 0:18:091.118 of an acre.
0:18:09 > 0:18:11Start me at 165.
0:18:11 > 0:18:14Nice looking building. Anyone here for it, 165...?
0:18:14 > 0:18:17There he is. Good afternoon, sir.
0:18:17 > 0:18:19165. 165, I'm bid. 170.
0:18:19 > 0:18:20Lady's bid at 170.
0:18:20 > 0:18:22Good afternoon, madam.
0:18:22 > 0:18:23175, sir.
0:18:25 > 0:18:2680.
0:18:26 > 0:18:2885. 90.
0:18:28 > 0:18:2995.
0:18:29 > 0:18:33190, madam, on my left.
0:18:33 > 0:18:35195, anywhere else?
0:18:35 > 0:18:38190, I'm bid. First up at 190.
0:18:39 > 0:18:40Second time at 190.
0:18:40 > 0:18:42And last time, anybody else?
0:18:42 > 0:18:43At £190,000,
0:18:43 > 0:18:45are we all done?
0:18:45 > 0:18:47OK, then.
0:18:47 > 0:18:49Yours. Well done, madam.
0:18:49 > 0:18:51Another happy buyer.
0:18:51 > 0:18:55And this time, the happy buyer was Sarah,
0:18:55 > 0:18:58who's been a property developer since 2014.
0:18:58 > 0:19:02She paid 190 grand for what is now her 11th property.
0:19:02 > 0:19:06Most of her other ten properties are, yes, you've guessed it, HMOs.
0:19:06 > 0:19:08MUSIC: There She Goes by The La's
0:19:11 > 0:19:13She met up with me, so I could find out
0:19:13 > 0:19:17what her intentions were for this, her largest property to date.
0:19:19 > 0:19:21- Sarah, nice to meet you. - Lovely to meet you, too.
0:19:21 > 0:19:23- Congratulations. - Thank you very much.
0:19:23 > 0:19:26Firstly, this is a monster.
0:19:26 > 0:19:28- Yeah.- Tell me why you wanted to buy it.
0:19:28 > 0:19:30So, it's progression, basically.
0:19:30 > 0:19:33At the minute we're dealing with sort of seven-bed HMOs,
0:19:33 > 0:19:35and we want to move onwards and upwards.
0:19:35 > 0:19:40So this has got huge amounts of potential to develop into, hopefully, 11 bedrooms.
0:19:40 > 0:19:44- So did you know straightaway as soon as you came in what you wanted to do?- Yeah.
0:19:44 > 0:19:47There's lots of space where we can put en-suites in the rooms,
0:19:47 > 0:19:50the kitchens can be moved around, so we get big kitchen-living rooms.
0:19:50 > 0:19:52And then there was a lot of reception rooms
0:19:52 > 0:19:55which weren't being utilised as bedrooms at the minute.
0:19:55 > 0:19:57So we're going to convert those into bedrooms,
0:19:57 > 0:19:58with the en-suite rooms.
0:19:58 > 0:20:01So how about the communal areas? How many of those will there be?
0:20:01 > 0:20:05So, communal areas, there will be two kitchens,
0:20:05 > 0:20:06both with dining rooms in.
0:20:06 > 0:20:09And then also a separate communal lounge.
0:20:09 > 0:20:12Wow! You must have so many pictures going on in your head.
0:20:12 > 0:20:15Yeah. It's been quite a thing with the architect to go round,
0:20:15 > 0:20:18look at floor plans. It's taken a long time to sort of think about
0:20:18 > 0:20:20the best way to utilise all the space.
0:20:20 > 0:20:24A lot of HMOs going on in this area. It fits really well
0:20:24 > 0:20:26and we're not having to do too much structural work.
0:20:26 > 0:20:28And who's going to do the work for you?
0:20:28 > 0:20:31Have you got a team of builders? Are you going to get stuck in yourself?
0:20:31 > 0:20:33No, not me! Yeah, I've got a fabulous group of builders
0:20:33 > 0:20:35who've been working on my other projects.
0:20:35 > 0:20:39So they're going to move in here as soon the planning's through,
0:20:39 > 0:20:41and hopefully sort of three to six months
0:20:41 > 0:20:43for them to turn the place round.
0:20:43 > 0:20:46- Really? That short a time? - Yeah. That's the plan.
0:20:46 > 0:20:48And what's your budget to get all the work done?
0:20:48 > 0:20:51So, it's actually a leasehold building at the minute
0:20:51 > 0:20:54- and there are 68 years left on the lease.- OK.
0:20:54 > 0:20:56Before it went to auction, we had a chat with the council about it
0:20:56 > 0:20:58because the council own the freehold.
0:20:58 > 0:21:01They have agreed to sell me the freehold,
0:21:01 > 0:21:04so we have to get an independent valuer in to come and value that.
0:21:04 > 0:21:06So, depending on what that comes through as,
0:21:06 > 0:21:09we're hoping between 50,000 and 70,000.
0:21:09 > 0:21:11OK. That's healthy.
0:21:11 > 0:21:13- Yeah. Healthy budget. - That's a healthy budget.
0:21:13 > 0:21:15- We want a nice place. - Yeah, exactly.
0:21:15 > 0:21:17What kind of finish are you looking for? What kind of finish?
0:21:17 > 0:21:19So, we tend to go for whitewash walls,
0:21:19 > 0:21:21then a feature wall of some colour,
0:21:21 > 0:21:25nice, brand-new furniture, pictures on the walls.
0:21:25 > 0:21:27A young professional sort of vibe.
0:21:27 > 0:21:30So what was your background? How did you get into property?
0:21:30 > 0:21:32Always had an interest, and then went to university for five years
0:21:32 > 0:21:36to study to be a vet. Of all things, as you do.
0:21:36 > 0:21:39So, I qualified as a vet and I was working for three years.
0:21:39 > 0:21:43Very much enjoyed the practice, working as an equine vet.
0:21:43 > 0:21:45But realised that I really wanted to be my own boss
0:21:45 > 0:21:47and a lot of the on-call work,
0:21:47 > 0:21:51it just wasn't working out on the work/life balance.
0:21:51 > 0:21:53So, the plan is to get the properties up and running,
0:21:53 > 0:21:56so financially that I'll be stable from those.
0:21:56 > 0:22:00And then after that, hopefully doing some voluntary vet work, possibly abroad.
0:22:00 > 0:22:03Really? So you'd like to go and take your qualifications...
0:22:03 > 0:22:05Yeah. It's a long degree to do to not use.
0:22:05 > 0:22:07So, I'm sort of thinking five years I trained to be that -
0:22:07 > 0:22:09really enjoy it but being my own boss
0:22:09 > 0:22:11is what I want at the end of the day,
0:22:11 > 0:22:13so if I can volunteer abroad, then that'll be great.
0:22:13 > 0:22:16Good for you. Is it just you in the property world? Have you got a partner?
0:22:16 > 0:22:18Yeah, my boyfriend's in the property world as well.
0:22:18 > 0:22:20There you go, you see.
0:22:20 > 0:22:23He's actually busy today doing three barn conversions at home.
0:22:23 > 0:22:24One of which will be for us
0:22:24 > 0:22:27and the other two will be for his two sisters.
0:22:27 > 0:22:29- Wow!- Quite a lot on our plate at the minute.- Good for you.
0:22:29 > 0:22:32Yeah, you can say that again.
0:22:32 > 0:22:36It's not as if she doesn't have any bathrooms or bedrooms to worry about here,
0:22:36 > 0:22:38without adding three barn conversions!
0:22:38 > 0:22:42Sarah's energy levels are impressive. So what are her plans?
0:22:44 > 0:22:47Six of the bedrooms will have nice en-suite shower rooms,
0:22:47 > 0:22:51and then the other bedrooms will be sharing two shower rooms, and then
0:22:51 > 0:22:54another two toilets as well in the basement by the communal areas.
0:22:54 > 0:22:56So does that mean two different tariffs,
0:22:56 > 0:22:57one with an en-suite and one without?
0:22:57 > 0:22:59Yeah. So, the double rooms with the en-suites,
0:22:59 > 0:23:01we're looking between £95 and £100 per week.
0:23:01 > 0:23:04Potentially able to get couples in those rooms,
0:23:04 > 0:23:06rather than sort of single occupants.
0:23:06 > 0:23:08And then the other rooms, which are slightly smaller,
0:23:08 > 0:23:10that don't have the facilities of the en-suites,
0:23:10 > 0:23:12we're looking at £80 to £85.
0:23:12 > 0:23:14Sarah, tell me about the basement.
0:23:14 > 0:23:16- There's a little bit of a...- Yes.
0:23:16 > 0:23:19We arrived today, and I was walking around turning the lights on
0:23:19 > 0:23:21and I heard quite a loud dripping noise.
0:23:21 > 0:23:24So we rushed downstairs and yes, it appears that the water system
0:23:24 > 0:23:27hadn't quite been drained down properly, as they thought,
0:23:27 > 0:23:31so we've had a little bit of a flood in the basement. But not to worry.
0:23:31 > 0:23:34- Not going to be a problem? - Not a problem. It's all getting ripped out down there anyway.
0:23:34 > 0:23:38- Oh, so you're starting from scratch down there.- We're having to re-tank, there's damp issues anyway,
0:23:38 > 0:23:42so what's a bit more water to add to it?!
0:23:42 > 0:23:45Fair enough. Fair enough. Tell me about the ground rent.
0:23:45 > 0:23:48Yes, so, my solicitor picked this up, actually,
0:23:48 > 0:23:50when we were going through the legal pack prior to the auction.
0:23:50 > 0:23:54And it's quite romantic. One red rose is the annual ground rent.
0:23:54 > 0:23:57- That's incredible, isn't it? - Yeah. Yeah. I like that.
0:23:57 > 0:24:00- A romantic gesture! - Yeah, definitely.
0:24:00 > 0:24:03Sarah, I wish you all the best. You've got all the answers, hope it works out for you.
0:24:03 > 0:24:05- Thank you very much.- Pleasure.
0:24:06 > 0:24:08Now, that is one confident lady.
0:24:08 > 0:24:10She knows what she wants and how to achieve it.
0:24:10 > 0:24:13This project is not for the faint-hearted.
0:24:13 > 0:24:16One thing she HAS got spot on is changing it into a HMO.
0:24:16 > 0:24:18I think that's the right way to go.
0:24:18 > 0:24:21How will she get on? We shall find out later in the programme.
0:24:22 > 0:24:25Coming up, in Silverdale, I sense problems...
0:24:25 > 0:24:30There's just something not quite right.
0:24:30 > 0:24:31You know you get a feeling?
0:24:34 > 0:24:38And could Sarah's HMO turn out to be a no-go?
0:24:38 > 0:24:41The planning application actually was rejected, originally.
0:24:45 > 0:24:47Time for a trip back to Tooting,
0:24:47 > 0:24:49where Lucy saw a flat in an upper conversion
0:24:49 > 0:24:53that was described as having a kitchen, bathroom and "three rooms".
0:24:55 > 0:24:57What do they mean by "three rooms"?
0:24:57 > 0:25:00Well, here's one of them. I think that's the lounge.
0:25:00 > 0:25:04And then, through here, well, here are the two other rooms.
0:25:04 > 0:25:06There's one of them down there.
0:25:06 > 0:25:11There's this unusual little corridor area, which is quite pointless.
0:25:11 > 0:25:14And, well, a partitioned wall into a tiny little bedroom.
0:25:16 > 0:25:19A reconfiguration of the layout seemed to be a good idea.
0:25:22 > 0:25:24There was potential living space in the loft,
0:25:24 > 0:25:27if ownership could be established.
0:25:27 > 0:25:31It was something new owner Charlie had already taken legal advice on
0:25:31 > 0:25:36before paying £321,000 for the flat.
0:25:36 > 0:25:40But the flat wasn't without risk, having a short lease of 58 years,
0:25:40 > 0:25:45and the loft extension depended on planning and freeholder permissions.
0:25:45 > 0:25:47But Charlie was a bit of a risk taker,
0:25:47 > 0:25:51having chucked his full-time job in popcorn sales
0:25:51 > 0:25:53to hopefully become a serial developer.
0:25:56 > 0:25:59- OK, you've got to try and hold this job now, OK?- This one? - You need to keep this job.
0:25:59 > 0:26:01Yeah, I know, but I will because it's me, you know.
0:26:01 > 0:26:03It's... I can...
0:26:03 > 0:26:06If I don't, I've got a big loan and stuff to do this,
0:26:06 > 0:26:09so I really do need to do it properly
0:26:09 > 0:26:12- so erm... Yeah, I think I'll have no problem holding this one.- Yeah.
0:26:12 > 0:26:15Anything that you are worried about with having purchased this building?
0:26:15 > 0:26:17Yeah, the whole thing, really!
0:26:18 > 0:26:21Charlie had been working as a handyman to learn some skills,
0:26:21 > 0:26:24but this project would definitely need the professionals.
0:26:24 > 0:26:26Charlie's timescale was dependent
0:26:26 > 0:26:28on those planning and freeholder permissions.
0:26:28 > 0:26:31So we've returned just over a year later
0:26:31 > 0:26:34to see if the former popcorn salesman
0:26:34 > 0:26:38has pulled off something spectacular or something a bit more corny.
0:26:41 > 0:26:44It's all changed here.
0:26:44 > 0:26:49The old kitchen and bathroom has now become a double-aspect bedroom.
0:26:49 > 0:26:54And next door, the former lounge has also been made into a bedroom.
0:26:54 > 0:26:57So, what about those two tiny rooms at the end of the hall?
0:26:58 > 0:27:00That is SO much better.
0:27:00 > 0:27:04Now we have a very nicely presented open-plan kitchen/living room.
0:27:04 > 0:27:07Every inch has been maximised,
0:27:07 > 0:27:09and there is even a little breakfast bar.
0:27:09 > 0:27:12But that's not all this flat has to offer, because...
0:27:12 > 0:27:14MUSIC: Higher by The Saturdays
0:27:14 > 0:27:17# I'm gonna lift it, lift it higher
0:27:17 > 0:27:21# I'm gonna lift it, lift it higher... #
0:27:21 > 0:27:23Charlie has his loft extension,
0:27:23 > 0:27:26and the light and feel of space is fantastic.
0:27:27 > 0:27:31As well as a smart bedroom, he has a beautiful bathroom.
0:27:34 > 0:27:37And along the corridor, there is a wet room,
0:27:37 > 0:27:39making this ideal for sharers.
0:27:39 > 0:27:43Getting permission for the dormer proved a real sticking point
0:27:43 > 0:27:47due to the roof facing a different direction to the neighbouring properties.
0:27:49 > 0:27:52It took three applications before it was approved.
0:27:54 > 0:27:57Charlie has encountered problems with his first builder,
0:27:57 > 0:27:59which cost him time and money,
0:27:59 > 0:28:03so the whole process has taken 13 months so far,
0:28:03 > 0:28:05with some work still to do outside.
0:28:05 > 0:28:10However, Charlie has used the delays to his advantage.
0:28:10 > 0:28:11Yeah, so when it happened,
0:28:11 > 0:28:13the builders came in and then planning permission failed,
0:28:13 > 0:28:16so the builders had got no work, so I started finding them work and
0:28:16 > 0:28:20from that, I've sort of got a team of like ten guys now, who I do other
0:28:20 > 0:28:23jobs with, so we are actually about to start our second loft conversion.
0:28:24 > 0:28:28And we do sort of anything, you know, internal decorating, painting,
0:28:28 > 0:28:31outdoor paving, basically we can do anything anyone wants,
0:28:31 > 0:28:33which has sort of come out of nowhere
0:28:33 > 0:28:35and I am obviously learning a lot about it,
0:28:35 > 0:28:37but my skills are more in the project management,
0:28:37 > 0:28:39just making sure you have the right people doing it,
0:28:39 > 0:28:42and it's better than sitting at a desk, what I used to do,
0:28:42 > 0:28:43so I quite like it.
0:28:43 > 0:28:47Charlie may have found a job he enjoys and one he won't quit, then.
0:28:47 > 0:28:50Despite wanting to do more of the work himself,
0:28:50 > 0:28:53he quickly realised it was best to get in professionals
0:28:53 > 0:28:55for the right standard of finish.
0:28:55 > 0:28:58This also included the finishing touches to the decor,
0:28:58 > 0:29:02and it just so happens his friend Alex is an interior designer.
0:29:03 > 0:29:07Charlie and I have known each other for quite a long time, since we were much younger,
0:29:07 > 0:29:10so we're quite used to spending lots of time together,
0:29:10 > 0:29:13and I definitely felt confident being able to boss him around
0:29:13 > 0:29:16and delegate when I wanted things done on the project.
0:29:16 > 0:29:20She did everything inside, and I just sort of carried out the work
0:29:20 > 0:29:22to her specifications, really. But it's worked really well.
0:29:22 > 0:29:24I'm really happy with it
0:29:24 > 0:29:26and I don't think I could have done it this well.
0:29:26 > 0:29:28Well, I KNOW I couldn't have done it this well.
0:29:28 > 0:29:30I'm happy with the flat.
0:29:30 > 0:29:35I'd like to put some additions to it to make it a bit more homely.
0:29:35 > 0:29:37But I think, as a basic starting point,
0:29:37 > 0:29:39I think it's worked really well.
0:29:39 > 0:29:44Alex may have had her hands tied a bit, because Charlie's budget
0:29:44 > 0:29:47for the internal furnishings was a tight £3,000.
0:29:48 > 0:29:50The flat was stripped back to bare brick,
0:29:50 > 0:29:52and ceilings had to be lowered
0:29:52 > 0:29:54to accommodate the steel support for the loft conversion.
0:29:54 > 0:29:58In total, the building work has amounted to 66,000
0:29:58 > 0:30:01of his total £100,000 budget, which seems great
0:30:01 > 0:30:03until you factor in one more thing -
0:30:03 > 0:30:06his plan to extend that 58-year lease,
0:30:06 > 0:30:10which he estimated would cost £70,000.
0:30:11 > 0:30:13We looked into extending the lease
0:30:13 > 0:30:15and I eventually decided to buy
0:30:15 > 0:30:18a share of the freehold with downstairs.
0:30:18 > 0:30:21It was easier, and actually not going to cost a huge amount more.
0:30:21 > 0:30:23So we now own the freehold as well.
0:30:23 > 0:30:26Charlie's share of the freehold came to 42 grand,
0:30:26 > 0:30:29so coupled with his £66,000 renovation budget
0:30:29 > 0:30:33and his £3,000 interior design costs,
0:30:33 > 0:30:37he's gone over his original £100,000 budget by 11,000.
0:30:37 > 0:30:40But what a cracking job.
0:30:40 > 0:30:43Will two local estate agents agree?
0:30:43 > 0:30:46Having had a look around the flat, I think it's a really lovely property.
0:30:46 > 0:30:48The owners have gone to the trouble to dress the flat as well, which
0:30:48 > 0:30:51makes a big difference, and really makes it feel really welcoming.
0:30:51 > 0:30:54The layout of the flat works fairly well.
0:30:54 > 0:30:57I think that the kitchen/living room area does feel a little bit compact,
0:30:57 > 0:31:00but other than that it's a nice flat.
0:31:00 > 0:31:03I think the loft conversion's very good because there's lots of light.
0:31:03 > 0:31:04Quite often with loft conversions,
0:31:04 > 0:31:06we find that they're lacking in light.
0:31:06 > 0:31:07But they've done quite an intelligent job
0:31:07 > 0:31:09with where the windows have gone.
0:31:09 > 0:31:10So the agents like the flat,
0:31:10 > 0:31:14and think that sales-wise, it would be worth around £500,000,
0:31:14 > 0:31:17which would give Charlie a £68,000 pre-tax profit.
0:31:19 > 0:31:20But his ideal plan is to rent it out,
0:31:20 > 0:31:22so what kind of figures could he achieve?
0:31:25 > 0:31:26This flat would rent
0:31:26 > 0:31:29for approximately £1,850 per calendar month.
0:31:29 > 0:31:32I think this flat could rent for £2,000 per calendar month.
0:31:32 > 0:31:35I was hoping for 1,800 a month,
0:31:35 > 0:31:40so 1,850 or 2,000 is really good.
0:31:40 > 0:31:42So I'm really happy with that.
0:31:42 > 0:31:44The top figure of two grand a month
0:31:44 > 0:31:47would give Charlie around 5.5% yield.
0:31:47 > 0:31:49Charlie hopes to rent this out for a year
0:31:49 > 0:31:52whilst he has a fixed-rate mortgage,
0:31:52 > 0:31:55and then sell on if the market is right.
0:31:55 > 0:31:57So, after all the experience gained,
0:31:57 > 0:31:59is Charlie ready to repeat the exercise?
0:32:01 > 0:32:04I am totally skint now, so er...not for a while.
0:32:04 > 0:32:10But I would love to do it again because I've made so many mistakes and learned so much,
0:32:10 > 0:32:13I think, touch wood, it'll be a lot easier the second time,
0:32:13 > 0:32:15so I kind of want to do it again,
0:32:15 > 0:32:17to put into practice everything I've learned.
0:32:17 > 0:32:21And would Alex be up for working with him again?
0:32:21 > 0:32:24I think that all depends on how this one turns out.
0:32:24 > 0:32:27But it's gone well so far, so optimistic.
0:32:27 > 0:32:29Yeah, I don't think I would have ended up
0:32:29 > 0:32:31with as nice a house without Alex's input.
0:32:31 > 0:32:32She's made it really nice.
0:32:32 > 0:32:36- So, yeah, I hope you want to work with me again.- Yeah.
0:32:43 > 0:32:46Silverdale in Newcastle-under-Lyme was for many centuries
0:32:46 > 0:32:49known as a coal-mining area.
0:32:49 > 0:32:52When the pits closed, the landscapers moved in
0:32:52 > 0:32:55and the former colliery is now a country park.
0:33:02 > 0:33:06Well, the guide price for the property I am here to see
0:33:06 > 0:33:10was just £30,000, which, for a three-bed semidetached,
0:33:10 > 0:33:13doesn't sound like a lot of money to me.
0:33:13 > 0:33:15The reason? Well, it doesn't look to be in
0:33:15 > 0:33:18too good condition from the outside.
0:33:21 > 0:33:26Boarded windows and cracked glass are never a good sign.
0:33:26 > 0:33:28And I also spy a concrete base,
0:33:28 > 0:33:32which could signify this house is of non-standard construction.
0:33:32 > 0:33:35Just occasionally, properties that look pretty awful from the outside
0:33:35 > 0:33:37turn out to be a bit of a surprise
0:33:37 > 0:33:38when you walk through the front door.
0:33:40 > 0:33:42But that's not the case here.
0:33:42 > 0:33:44It's bad.
0:33:44 > 0:33:47But what have we got? Well, there's that sort of little porchy thing
0:33:47 > 0:33:49on the outside there that you'd definitely want to get rid of,
0:33:49 > 0:33:53into a fairly claustrophobic little entry bit.
0:33:53 > 0:33:55And then you've got, oddly, a shower and sort of...
0:33:55 > 0:33:58Is that a toilet as well? No, just a shower, that's a bit weird.
0:33:58 > 0:34:00Just there.
0:34:00 > 0:34:02Living room, well front living... No, it's not.
0:34:02 > 0:34:04I'd say it's a living room because it's got a fireplace.
0:34:04 > 0:34:06That's weird. It's a kitchen.
0:34:06 > 0:34:10Wow! Nothing at all is what it seems in this property.
0:34:10 > 0:34:16Through from that kitchen/living room to the real living room at the back here.
0:34:16 > 0:34:19Nice open fire in here. We like that.
0:34:19 > 0:34:23Glassy stuff leading out to a lean to-ey thing out there.
0:34:23 > 0:34:29But there's just something not quite right.
0:34:29 > 0:34:31You know you get a feeling?
0:34:35 > 0:34:39The downstairs area is certainly very unappealing.
0:34:39 > 0:34:41The pieces of this property puzzle
0:34:41 > 0:34:43are slowly coming together in my head,
0:34:43 > 0:34:47but my suspicions will only be confirmed by a visit upstairs.
0:34:47 > 0:34:49POIGNANT PIANO MUSIC
0:34:51 > 0:34:52Wow!
0:34:54 > 0:34:57That's either very dark paint on the ceiling
0:34:57 > 0:34:59or something a bit more sinister.
0:34:59 > 0:35:02You've guessed it, it's something a lot more sinister.
0:35:02 > 0:35:04What have we got upstairs?
0:35:04 > 0:35:07We've got a loo there, which is good.
0:35:07 > 0:35:10A bedroom towards the front of the property there.
0:35:10 > 0:35:13Another bedroom towards the back.
0:35:13 > 0:35:17And you've guessed what's going on here - we've got severe fire damage.
0:35:17 > 0:35:20Now, this is unusual. You would normally expect fire damage
0:35:20 > 0:35:24to be downstairs because fires invariably start in the kitchens,
0:35:24 > 0:35:27maybe the living room, where there's that open fire.
0:35:27 > 0:35:32But clearly, this is the epicentre of where
0:35:32 > 0:35:35the fire in this property was,
0:35:35 > 0:35:37and you can see the kind of damage it's done.
0:35:37 > 0:35:40Windows broken, blown in with the wind,
0:35:40 > 0:35:42we've got holes in the floor here.
0:35:42 > 0:35:44I mean, I'm treading quite gingerly.
0:35:45 > 0:35:48Fire and the ensuing water damage from extinguishing it
0:35:48 > 0:35:53mean it's what you CAN'T see that you have to consider.
0:35:53 > 0:35:57There could be structural issues - damaged timbers, electrics,
0:35:57 > 0:36:00and then factor in that this place was lying empty
0:36:00 > 0:36:02for a length of time before the fire.
0:36:02 > 0:36:04There could be a lot to fix
0:36:04 > 0:36:07before you even get to the regular renovation challenges like layout.
0:36:12 > 0:36:14And obviously, the biggest issue is this.
0:36:14 > 0:36:18It's upstairs. There is, well, a toilet. That's it, though.
0:36:18 > 0:36:19The shower room is downstairs,
0:36:19 > 0:36:23and obviously you'd like to have those on the same floor, ideally.
0:36:23 > 0:36:25But for the life of me, I can't figure out
0:36:25 > 0:36:27how you would achieve that,
0:36:27 > 0:36:30how you could increase the size of the bathroom.
0:36:30 > 0:36:33One option could be to put the bathroom,
0:36:33 > 0:36:37shower and toilet and bath into that bedroom there.
0:36:37 > 0:36:38But you'd lose a bedroom,
0:36:38 > 0:36:41with the resulting drop in the value of the property, or rental potential.
0:36:43 > 0:36:46Take out this wall, stick it in... No, it just doesn't work.
0:36:46 > 0:36:47HE HUFFS
0:36:47 > 0:36:49Yes, I'm definitely flummoxed.
0:36:49 > 0:36:52So, I think it has to stay pretty much as it is.
0:36:54 > 0:36:55Despite its drawbacks,
0:36:55 > 0:37:01this is a three-bedroomed house in a popular location for £30,000.
0:37:01 > 0:37:03We called on the services of an agent
0:37:03 > 0:37:06from the auction house that sold the property.
0:37:06 > 0:37:12# And I can't find a reason to change... #
0:37:12 > 0:37:13If this was my property,
0:37:13 > 0:37:17I would look to maybe taking some walls down
0:37:17 > 0:37:21to create a larger kitchen, maybe add in a utility room,
0:37:21 > 0:37:24rather than the downstairs bathroom, currently.
0:37:24 > 0:37:29I would also consider adding a new conservatory on the back.
0:37:29 > 0:37:31I think that would add value.
0:37:31 > 0:37:33Talking of value, what could the property be worth
0:37:33 > 0:37:36after refurbishment?
0:37:36 > 0:37:39Once renovated, this property would have a resale value
0:37:39 > 0:37:43of between £50,000 and £60,000,
0:37:43 > 0:37:45and the rental value
0:37:45 > 0:37:48would be in the region of £550 per calendar month.
0:37:50 > 0:37:53Well, it's a nice location, but this is a house
0:37:53 > 0:37:57that's certainly not for the inexperienced or faint of heart.
0:37:57 > 0:38:00Lots of work required to sort this one out.
0:38:00 > 0:38:03Let's see who fancied taking on a bit of a project
0:38:03 > 0:38:05when it went under the hammer.
0:38:08 > 0:38:12Want to sell this one, can we say £20,000 start?
0:38:12 > 0:38:1417? I'll take it.
0:38:14 > 0:38:15£17,000.
0:38:15 > 0:38:16On the front row.
0:38:16 > 0:38:18At 17.
0:38:18 > 0:38:2218. 19. 20? 20. 21.
0:38:22 > 0:38:26The bidding is quick for this bargain basement property.
0:38:26 > 0:38:30We rejoin it with the auctioneer looking for 33,000.
0:38:30 > 0:38:3233, sir?
0:38:32 > 0:38:35Yeah, 33.
0:38:35 > 0:38:3633,500.
0:38:36 > 0:38:3934? 34.
0:38:39 > 0:38:4134,500.
0:38:41 > 0:38:4335.
0:38:43 > 0:38:45Sure? 35,000, bid's on the second row.
0:38:45 > 0:38:47£35,000 once, then.
0:38:47 > 0:38:49£35,000 twice.
0:38:49 > 0:38:53Third and last time. £35,000...
0:38:53 > 0:38:55- HAMMER COMES DOWN - Your lot, sir. Well done.
0:38:56 > 0:39:00The new owners of this fire-damaged house are old friends Jim and Celia,
0:39:00 > 0:39:04who have a very interesting reason for buying it.
0:39:04 > 0:39:07I met them back at the property to hear their story.
0:39:07 > 0:39:08# Friends
0:39:10 > 0:39:12# I got friends... #
0:39:13 > 0:39:16- Celia, Jim, great to meet you both. - Thank you.
0:39:16 > 0:39:18- Congratulations.- Indeed.
0:39:18 > 0:39:21So, tell me why you wanted to buy this place.
0:39:21 > 0:39:24Because he hadn't got a roof over his head.
0:39:24 > 0:39:26Oh, right. Tell me more.
0:39:26 > 0:39:27Well, I'd been living in Chester
0:39:27 > 0:39:31for 33 years as, like, an unwritten janitor.
0:39:31 > 0:39:34And the landlord decided, 86, he's going to retire.
0:39:34 > 0:39:35It was a listed building,
0:39:35 > 0:39:38it had to be renovated and all the occupants had to go.
0:39:38 > 0:39:39And just at that time, I became ill,
0:39:39 > 0:39:42and this lady turned around and said she'd look after me.
0:39:42 > 0:39:45Oh, wow! You ended up looking after him?
0:39:45 > 0:39:47Oh, yes. I'm twice his age.
0:39:47 > 0:39:50- Right.- I looked after him.
0:39:50 > 0:39:53How do you two know each other, then?
0:39:53 > 0:39:56Well, I crashed my car, the one and only time,
0:39:56 > 0:39:58somebody recommended me to Jim,
0:39:58 > 0:40:00I got in touch with him
0:40:00 > 0:40:03and he was going to do it up, and then I heard that
0:40:03 > 0:40:05he'd been on his own over Christmas,
0:40:05 > 0:40:08so I rang him and said, "What the hell were you playing at?"
0:40:08 > 0:40:11"Why didn't you tell me and then you could have come
0:40:11 > 0:40:13"and had Christmas dinner instead of being on your own?"
0:40:13 > 0:40:17So, he said, "Well, I never thought, but I could come now, if you like."
0:40:17 > 0:40:20- Aww!- Later, when of course he had to get out, I said,
0:40:20 > 0:40:25"Well, look, I've got a spare room, you can have a roof over your head."
0:40:25 > 0:40:28- Wow.- And I ended up looking after him.
0:40:28 > 0:40:30- Wow!- And I've been lumbered ever since.
0:40:30 > 0:40:32Talk about damsel in shining armour!
0:40:32 > 0:40:34You rode in to save him.
0:40:34 > 0:40:37- Damsel?! An old biddy!- I've had to do the polishing of the armour though.
0:40:37 > 0:40:42But now it's changed, obviously. I'm nearly 88. And he looks after me.
0:40:42 > 0:40:45- Anything wrong, you know, he sorts me out.- Right.
0:40:47 > 0:40:49# Thank you for being a friend... #
0:40:49 > 0:40:52It was Jim who purchased the house, on the understanding
0:40:52 > 0:40:54that they would both live there eventually.
0:40:54 > 0:40:59They also have a close network of friends and family who live nearby.
0:41:02 > 0:41:05# Thank you for being a friend
0:41:05 > 0:41:07# I wanna thank you
0:41:07 > 0:41:09# Thank you for being a friend... #
0:41:09 > 0:41:11Because she looked after me, the basic essence was a case
0:41:11 > 0:41:15that she would have somewhere as a return for looking after me.
0:41:15 > 0:41:19- Oh, wow!- So that was the concept which we worked on.
0:41:19 > 0:41:22I didn't think I would be still around, but I am.
0:41:22 > 0:41:27And now I'm in a position where to some extent I can do something,
0:41:27 > 0:41:29look after her in a modest way.
0:41:29 > 0:41:30- That's brilliant.- Yeah.
0:41:30 > 0:41:33So what's the story about buying this place, then?
0:41:33 > 0:41:36- Neither of us can get a mortgage. I'm too old.- Right.
0:41:36 > 0:41:40And Jim... Without an income - it's based on income,
0:41:40 > 0:41:44which he hasn't at the moment - he can't get a mortgage.
0:41:44 > 0:41:47So basically, this came within your price range and your budget.
0:41:47 > 0:41:50Yes. Within a capital price range, with the understanding, of course,
0:41:50 > 0:41:53- that we're going to spend a lot on it.- Yep.- That's the point.- Right.
0:41:53 > 0:41:56Setting aside a budget of £10,000,
0:41:56 > 0:42:02Jim and Celia hope to have the renovation completed in six months.
0:42:02 > 0:42:03Jim will do all the work,
0:42:03 > 0:42:07although Celia is determined to help in any way she can.
0:42:09 > 0:42:12Top of the list is to make the place safe and secure.
0:42:12 > 0:42:15If the building is causing a danger or blighting an area,
0:42:15 > 0:42:18then the local council has powers to ensure repairs
0:42:18 > 0:42:21or demolition can be carried out at the owner's expense.
0:42:22 > 0:42:26The council had served notice on this as a dangerous property,
0:42:26 > 0:42:29which had been declared in the legal pack.
0:42:29 > 0:42:33So, Jim will be getting windows and fences sorted urgently.
0:42:37 > 0:42:39What was it about this house that you liked?
0:42:39 > 0:42:42I think I was a bit mesmerised at the state of it.
0:42:42 > 0:42:47And I walked upstairs and I looked through the small bedroom
0:42:47 > 0:42:49and I looked at the views across the way
0:42:49 > 0:42:51and I thought to myself, "That's lovely views."
0:42:51 > 0:42:53And we'd seen other properties,
0:42:53 > 0:42:56and none of them had the sort of feel that
0:42:56 > 0:42:58this one did, even though we had to bear in mind
0:42:58 > 0:43:01that it was in such a state.
0:43:01 > 0:43:03So what about the layout of the toilet facilities?
0:43:03 > 0:43:06The toilet upstairs and the shower room downstairs.
0:43:06 > 0:43:08- What are you going to do about that? - It's ridiculous.
0:43:08 > 0:43:11There's a toilet upstairs but no hand basin.
0:43:11 > 0:43:13You can't have a toilet without a hand basin.
0:43:13 > 0:43:15So we're going to put a sliding door,
0:43:15 > 0:43:18so that we can put a wash basin in the upstairs toilet.
0:43:18 > 0:43:23And also, I'd like to have a downstairs toilet as well
0:43:23 > 0:43:26because I don't like going upstairs at my age.
0:43:26 > 0:43:29Well, listen, congratulations. Good luck with it.
0:43:29 > 0:43:32- Really look forward to seeing how you get on.- Thank you very much indeed. Appreciate it.
0:43:34 > 0:43:35Well, what a lovely story.
0:43:35 > 0:43:39But a lot of work needed to sort this place out,
0:43:39 > 0:43:44and I'm really not sure that £10,000 budget is going to cover it.
0:43:44 > 0:43:48You can find out how Jim and Celia get on, though, later in the show.
0:43:52 > 0:43:54We've found out how one property's turned out.
0:43:54 > 0:43:57The clock is ticking - let's find out how the other two got on.
0:43:57 > 0:43:59Will there be champagne corks popping
0:43:59 > 0:44:01or will things have fizzled out?
0:44:01 > 0:44:02Let's have a look.
0:44:04 > 0:44:06Back now to Liverpool, where earlier,
0:44:06 > 0:44:10I looked at this nine-bedroom house close to Newsham Park,
0:44:10 > 0:44:12bought by Sarah for 190 grand.
0:44:14 > 0:44:17Sarah, a former vet, had already got ten other properties
0:44:17 > 0:44:20and intended turning this one into her biggest HMO,
0:44:20 > 0:44:22which is a house of multiple occupancy.
0:44:25 > 0:44:29This has got huge amounts of potential to develop into, hopefully, 11 bedrooms.
0:44:29 > 0:44:32And who's going to do the work for you? Have you got a team of builders
0:44:32 > 0:44:35- or are you going to get stuck in yourself?- No, not me. Ha-ha!
0:44:35 > 0:44:37Yeah, I've got a fabulous group of builders
0:44:37 > 0:44:38who've been working on my other projects,
0:44:38 > 0:44:41so they're going to move in here as soon as the planning's through.
0:44:41 > 0:44:44And hopefully, sort of three to six months
0:44:44 > 0:44:46for them to turn the place round.
0:44:46 > 0:44:48- Really? That short a time? - Yeah. That's the plan.
0:44:49 > 0:44:54In fact, we're back just over a year on, so it did take more time.
0:44:54 > 0:44:57And there aren't 11 rooms.
0:44:57 > 0:44:58But we do have Sarah's top ten,
0:44:58 > 0:45:01so let's do the countdown from the top.
0:45:01 > 0:45:04MUSIC: Top Of The Pops Theme
0:45:05 > 0:45:08And missing any bedrooms with tenants, at number nine,
0:45:08 > 0:45:14what WAS ginger peachy is now yellow counterpane with matching chairs.
0:45:18 > 0:45:22Number eight, last time, pink with green skirtings,
0:45:22 > 0:45:25now gingham style by the three poppies.
0:45:25 > 0:45:29And lavender blue gets replaced by an en-suite.
0:45:32 > 0:45:35Down the landing, and purple haze has left the building
0:45:35 > 0:45:38to be replaced by number seven,
0:45:38 > 0:45:42yellow and grey harlequins with rejuvenated shower room.
0:45:44 > 0:45:50Down to the first floor, six is tenanted, so on to number five.
0:45:50 > 0:45:53Which had the green, green paint of home.
0:45:53 > 0:45:56It's now olive-green, and desk with a view.
0:45:59 > 0:46:02The last first-floor bedroom is number four,
0:46:02 > 0:46:04with "We fade to grey".
0:46:08 > 0:46:12But the bedrooms aren't the only changes up here.
0:46:12 > 0:46:17Out with mellow yellow, and in comes communal kitchen with twin toasters.
0:46:20 > 0:46:23The ground floor's three bedrooms are all occupied
0:46:23 > 0:46:26but we CAN see the communal lounge,
0:46:26 > 0:46:28with four two-seaters.
0:46:30 > 0:46:35In the basement, twin toilets move over for the laundry and loo.
0:46:38 > 0:46:41And finally,
0:46:41 > 0:46:45what was a flooded basement is now
0:46:45 > 0:46:49a new lower ground kitchen
0:46:49 > 0:46:52with oodles of drawer space.
0:46:54 > 0:46:57But what happened to bedroom number 11?
0:46:57 > 0:47:01The planning application actually was rejected originally
0:47:01 > 0:47:02for the 11 bedrooms.
0:47:02 > 0:47:06Despite having written confirmation previously from the council
0:47:06 > 0:47:08to say that we would be OK for change of use.
0:47:08 > 0:47:11However, it was the local residents and local councillors that had the
0:47:11 > 0:47:15issue, so I had to hold a residential meeting. And from there,
0:47:15 > 0:47:18we discussed the plans for the property
0:47:18 > 0:47:21and the local residents wanted private bathroom facilities
0:47:21 > 0:47:22for each individual person,
0:47:22 > 0:47:25so we went back to planning with ten bedrooms, ten bathrooms,
0:47:25 > 0:47:27and that was then put through.
0:47:27 > 0:47:31So, unforeseen planning caused the six-month delay.
0:47:31 > 0:47:35I had wondered if that lift might be a maintenance liability,
0:47:35 > 0:47:37so what have they decided to do?
0:47:37 > 0:47:40It was decided in the end that the maintenance issues and the potential
0:47:40 > 0:47:43that tenants on a Sunday night could get stuck in the lift,
0:47:43 > 0:47:46we decided to fireboard over it and get rid of it.
0:47:46 > 0:47:49There was talk of purchasing the lease,
0:47:49 > 0:47:50and therefore avoiding
0:47:50 > 0:47:53paying the one red rose ground rent.
0:47:53 > 0:47:56What happened there?
0:47:56 > 0:47:59It's Liverpool City Council that own the freehold of the building.
0:47:59 > 0:48:02So my solicitor has been liaising with them to purchase the freehold.
0:48:02 > 0:48:06Which we now have agreed, which including their solicitors' costs,
0:48:06 > 0:48:08is £12,500.
0:48:08 > 0:48:10So, have you gone over budget?
0:48:10 > 0:48:12The original budget was 50,000 to 70,000.
0:48:12 > 0:48:15We have gone over budget, to 85,000,
0:48:15 > 0:48:18but that does include the additional bathroom facilities that were
0:48:18 > 0:48:21necessary for planning and also the buying of the freehold.
0:48:22 > 0:48:26It's that time again to find out what two local estate agents think
0:48:26 > 0:48:29of the property and its values.
0:48:29 > 0:48:30My first impressions of the property
0:48:30 > 0:48:33is the developers have done it very, very contemporarily.
0:48:33 > 0:48:35Lovely colours,
0:48:35 > 0:48:38ideal for young professionals. And quite on-point really.
0:48:38 > 0:48:44The kitchens are really very, very modern and clean and hygienic.
0:48:44 > 0:48:47And the bedrooms have got good space.
0:48:47 > 0:48:49Standard of finish is to an acceptable level,
0:48:49 > 0:48:52it's not fantastic.
0:48:52 > 0:48:55But really, when you overspend, that cuts into your profit.
0:48:55 > 0:48:58So I think all in all, a good job.
0:48:58 > 0:49:02If Sarah wanted to sell, what kind of market would it appeal to?
0:49:02 > 0:49:03The demand for properties
0:49:03 > 0:49:06like this from investors is huge at the moment.
0:49:06 > 0:49:09Our overseas market is fabulous.
0:49:09 > 0:49:13It's going to achieve around about 10% or 11% as a return for them from
0:49:13 > 0:49:17their investment. So all in all, there are a whole cross-section
0:49:17 > 0:49:20of people who would be interested in this type of investment.
0:49:20 > 0:49:24Sarah's total investment amounts to 275 grand.
0:49:24 > 0:49:26The rental on a property like this per room
0:49:26 > 0:49:29is around £60 to £65 a week.
0:49:29 > 0:49:33And per calendar month, around about £350.
0:49:33 > 0:49:37Roughly speaking, you'd be talking £240 per calendar month per room.
0:49:37 > 0:49:39We are actually getting a lot more than that.
0:49:39 > 0:49:42The two bedrooms that have the bathrooms across the corridor
0:49:42 > 0:49:46are £95 per week. The double rooms with couples in,
0:49:46 > 0:49:49which we've got four of, are £130 per week.
0:49:49 > 0:49:52And the other four bedrooms are £105 per week.
0:49:52 > 0:49:56So Sarah is getting an annual yield of just short of 20%.
0:49:56 > 0:49:58Wow! But if she were to sell...?
0:50:00 > 0:50:03In the sales market, this property would be very, very popular to investors.
0:50:03 > 0:50:06I would think we would be looking to achieve
0:50:06 > 0:50:11between £325,000 to £350,000.
0:50:11 > 0:50:13As far as sales market is concerned,
0:50:13 > 0:50:17there would be no difficulty in finding a buyer at around £320,000.
0:50:17 > 0:50:19Again, with the top figure,
0:50:19 > 0:50:23a potential profit, before taxes and expenses, of 75 grand.
0:50:23 > 0:50:25What do you think, Sarah?
0:50:25 > 0:50:30Well, my thoughts on those valuations are that it's a difficult property to value.
0:50:30 > 0:50:33Because nobody would purchase a property to live in themselves,
0:50:33 > 0:50:35so the real value is as a business.
0:50:35 > 0:50:38And the way it's set up and running as a business
0:50:38 > 0:50:42and the rates that I'm getting, I've actually had it commercially valued at 450,000.
0:50:42 > 0:50:46But why sell something that's generating that level of income?
0:50:46 > 0:50:49You'd just want to invest in more like it.
0:50:49 > 0:50:52We're already on with another investment property just over the road from here,
0:50:52 > 0:50:55which is going to be a six-bedroom en-suite HMO as well.
0:50:55 > 0:50:57Sarah, do you ever rest?
0:50:57 > 0:51:00By the way, how are the three barn conversions going?
0:51:00 > 0:51:03Myself and my boyfriend, Josh, are moving into our new-build barn
0:51:03 > 0:51:05this week. That's an ongoing project for 18 months,
0:51:05 > 0:51:08but we are really looking forward to that.
0:51:08 > 0:51:10And also, a bit of a break and going on holiday.
0:51:10 > 0:51:12Well, if you do get bored,
0:51:12 > 0:51:14you can always do some voluntary veterinary work.
0:51:17 > 0:51:21Back now to the former mining village of Silverdale,
0:51:21 > 0:51:22Newcastle-under-Lyme.
0:51:22 > 0:51:27Back in 2014, I looked around this three-bedroom semi.
0:51:27 > 0:51:30Now, just occasionally, properties that look pretty awful
0:51:30 > 0:51:32from the outside turn out to be a bit of a surprise
0:51:32 > 0:51:34when you walk through the front door.
0:51:36 > 0:51:37That's not the case here.
0:51:37 > 0:51:40The property had been empty for some time
0:51:40 > 0:51:43and had suffered significant fire damage,
0:51:43 > 0:51:46so being of a non-standard construction and having a terrible
0:51:46 > 0:51:48layout were the least of its problems.
0:51:48 > 0:51:51Deciding to take on the challenge were Jim,
0:51:51 > 0:51:53along with his friend Celia.
0:51:53 > 0:51:58Jim paid £35,000 for what he hoped one day would be their home.
0:52:01 > 0:52:04So what was it about this house that you liked?
0:52:04 > 0:52:07I think I was a bit mesmerised at the state of it.
0:52:07 > 0:52:10And I walked upstairs and I looked through the small bedroom
0:52:10 > 0:52:14and I looked at the views across the way and I thought to myself,
0:52:14 > 0:52:15"That's lovely views."
0:52:15 > 0:52:17And then we'd seen other properties
0:52:17 > 0:52:21and none of them had the sort of feel that this one did,
0:52:21 > 0:52:24even though we had to bear in mind that it was in such a state.
0:52:24 > 0:52:26Their original timescale was six months.
0:52:27 > 0:52:30We are back almost two years later.
0:52:30 > 0:52:32Jim's doing the work HIS way.
0:52:37 > 0:52:39It is work in progress,
0:52:39 > 0:52:43and it'll be some time before Jim and Celia get to move in.
0:52:49 > 0:52:51If you buy a fire-damaged property,
0:52:51 > 0:52:53bear in mind that its services
0:52:53 > 0:52:56may have been disconnected for safety.
0:52:56 > 0:52:58Gas and electric in particular
0:52:58 > 0:53:01in an empty property don't make good bedfellows,
0:53:01 > 0:53:03and are a tempting asset for squatters.
0:53:08 > 0:53:10Jim has had to prioritise the work,
0:53:10 > 0:53:13so he made sure the building was made secure.
0:53:13 > 0:53:16So if anybody tried to walk into the property or anything else
0:53:16 > 0:53:19like that, it wouldn't be hazardous,
0:53:19 > 0:53:22as there's a dangerous properties order on the property,
0:53:22 > 0:53:26due to the fact that the doors were all smashed and the windows were,
0:53:26 > 0:53:28you know... It was a hazard.
0:53:29 > 0:53:31Jim is still assessing the extent of the damage,
0:53:31 > 0:53:33before calling in the professionals
0:53:33 > 0:53:35to sort out the electrics and heating.
0:53:35 > 0:53:40At present, it's difficult to be in the house for any length of time.
0:53:40 > 0:53:44There's no water, there's no electricity, there's no gas.
0:53:45 > 0:53:47There's nothing.
0:53:47 > 0:53:52You might as well be in a cave, except it's got carpets.
0:53:52 > 0:53:55So, we can see where Jim has been busy, but what about Celia?
0:53:57 > 0:53:59I've not done very much at all.
0:53:59 > 0:54:02Shall we say, it's been moral support.
0:54:03 > 0:54:04Well, on a project such as this
0:54:04 > 0:54:07moral support is a much-needed asset,
0:54:07 > 0:54:09especially, I would imagine,
0:54:09 > 0:54:11when it comes to sticking to the £10,000 budget.
0:54:11 > 0:54:14How's THAT been?
0:54:14 > 0:54:17Currently we've spent approx... approx 1,500.
0:54:17 > 0:54:21There's a tool box with a load of receipts there,
0:54:21 > 0:54:24which Celia'll do all the accountancy at the end of it all.
0:54:24 > 0:54:28What are the main cost items that are still needed?
0:54:28 > 0:54:31We're looking at the central heating, combi boiler,
0:54:31 > 0:54:35some plastering, whatever it is that I find on the electrics
0:54:35 > 0:54:37that needs expertise on it.
0:54:39 > 0:54:40Then we're down to decorating,
0:54:40 > 0:54:44so I think we're still on cue for the budget
0:54:44 > 0:54:47that we originally turned round and thought it was going to be.
0:54:47 > 0:54:49Jim had time in hospital himself
0:54:49 > 0:54:52and looks after Celia, based near Manchester,
0:54:52 > 0:54:56and sees to his elderly parents in Chester.
0:54:56 > 0:55:00He's got to look after them and he's got to look after me as well.
0:55:00 > 0:55:02And do this at the same time,
0:55:02 > 0:55:05so it's taking a lot longer than we expected.
0:55:05 > 0:55:07Although it's been unavoidable,
0:55:07 > 0:55:11has the overrun of 18 months to get the work to this stage
0:55:11 > 0:55:12caused any friction?
0:55:14 > 0:55:16I've not fallen out with him.
0:55:16 > 0:55:19Yet. For the time being.
0:55:19 > 0:55:21- But watch it.- That's it.
0:55:21 > 0:55:25In 1955, Celia's first four-bedroomed house
0:55:25 > 0:55:28in an upmarket area cost her £2,500.
0:55:28 > 0:55:31So, how does SHE feel about the cost of this project?
0:55:34 > 0:55:39I am quite horrified at the telephone number rate
0:55:39 > 0:55:42of the cost of things now.
0:55:42 > 0:55:44The cost of houses, I mean...
0:55:44 > 0:55:47Fiddly little things like this.
0:55:47 > 0:55:50You could have bought it for under £200.
0:55:50 > 0:55:57So having, what, nearly 90 years of living with that knowledge,
0:55:57 > 0:55:59it colours my outlook completely.
0:56:02 > 0:56:04Here to perhaps colour Celia's outlook even more
0:56:04 > 0:56:07are two property experts
0:56:07 > 0:56:12we've invited to give their opinions and telephone number valuations.
0:56:12 > 0:56:14What could be done is
0:56:14 > 0:56:17the first floor to be knocked about a little bit
0:56:17 > 0:56:20so that we've got a bathroom upstairs.
0:56:20 > 0:56:23It's got very good parking facilities,
0:56:23 > 0:56:25and the internal accommodation is a good size.
0:56:25 > 0:56:28Just needs finishing off to a good standard.
0:56:28 > 0:56:32It seems unlikely that Jim and Celia would rent the property out,
0:56:32 > 0:56:35but let's find out if we can tempt them.
0:56:35 > 0:56:36On completion of the works,
0:56:36 > 0:56:42I'd recommend a rental figure in the region of £475 per calendar month.
0:56:42 > 0:56:45Once the work's completed on the property,
0:56:45 > 0:56:47we would place the property for rent
0:56:47 > 0:56:50somewhere in the region of £450 per calendar month.
0:56:50 > 0:56:53- We're not going to rent, are we? - HE CHUCKLES
0:56:53 > 0:56:55Then you're probably not going to sell either -
0:56:55 > 0:56:57but we'll give you those values too.
0:56:57 > 0:56:59However, one thing that WILL affect the valuations
0:56:59 > 0:57:02is the non-standard construction of the property.
0:57:02 > 0:57:05Prefabrication reinforced concrete,
0:57:05 > 0:57:08or PRC construction, like this can be made mortgageable
0:57:08 > 0:57:11with the addition of an outer skin of bricks to the walls.
0:57:11 > 0:57:14Once completed by a recognised repairer,
0:57:14 > 0:57:17an engineer will then issue a PRC certificate.
0:57:19 > 0:57:22Jim and Celia aren't bothered about doing this work,
0:57:22 > 0:57:24as their intention is to move in,
0:57:24 > 0:57:26but to get the top valuation,
0:57:26 > 0:57:29let's assume that the work has been done.
0:57:32 > 0:57:35Once the work is completed and deemed mortgageable
0:57:35 > 0:57:38with a PRC certificate, we would look to place the property
0:57:38 > 0:57:41on the market somewhere in the region of £75,000.
0:57:41 > 0:57:44On completion of the works,
0:57:44 > 0:57:48and if a bathroom was installed on the first floor,
0:57:48 > 0:57:53I would recommend a sale value of £80,000.
0:57:54 > 0:57:55Fair enough.
0:57:55 > 0:57:57HE CHUCKLES
0:57:57 > 0:58:00- Modest words. Yeah, fair enough. - Yeah.
0:58:00 > 0:58:01Hopefully it won't be an issue,
0:58:01 > 0:58:05and Jim and Celia will be able to move in before too long.
0:58:10 > 0:58:12Well, that's it for now.
0:58:12 > 0:58:16We'll be back with more auction action for you next time.
0:58:16 > 0:58:18Yes, from bungalows to basements to building sites,
0:58:18 > 0:58:21- you get it all here on Homes Under The Hammer. See you later.- Goodbye.