0:00:03 > 0:00:04Hello, and welcome to the show.
0:00:04 > 0:00:07It doesn't matter if you're a seasoned property developer
0:00:07 > 0:00:09or a first-time buyer - we all want value for money.
0:00:09 > 0:00:14Yes, but how do you get that in an ever-fluctuating property market?
0:00:14 > 0:00:18Well, one way could be to head down to your local auction house.
0:00:18 > 0:00:21So, what's stopping you buying your next home under the hammer?
0:00:47 > 0:00:50Well, when it comes to auction purchases,
0:00:50 > 0:00:53sometimes you just know you've bagged yourself a bargain.
0:00:53 > 0:00:56Other times you're not so sure, and doubts can creep in.
0:00:56 > 0:00:59Yes, and the best way is to test the market.
0:00:59 > 0:01:02Did the buyers on today's show make the right moves?
0:01:02 > 0:01:03Let's find out.
0:01:05 > 0:01:07I'm at the seaside in Devon
0:01:07 > 0:01:11at this ground-floor flat with views to die for.
0:01:11 > 0:01:14Oooh. That's what we're after.
0:01:14 > 0:01:19At this three-bed semi in Crewe, I'm trying my hand at interior decor.
0:01:19 > 0:01:22I'm pretty sure nowadays they are called industrial chic,
0:01:22 > 0:01:24I'll have you know.
0:01:24 > 0:01:26And it's continental chic for Lucy
0:01:26 > 0:01:28in this one-bedroom flat in London.
0:01:28 > 0:01:31Change the kitchen into a much bigger bedroom
0:01:31 > 0:01:35and, voila, you've got a much nicer living space.
0:01:35 > 0:01:3610, 12...
0:01:36 > 0:01:39All these properties have been sold at auction,
0:01:39 > 0:01:42and we'll find out who bought them and what they paid
0:01:42 > 0:01:44when they went under the hammer. Sold.
0:01:47 > 0:01:51I'm in Devon, in an area known as the Jurassic Coast.
0:01:53 > 0:01:57This World Heritage Site spans 96 miles,
0:01:57 > 0:02:03and the rock face dates back 185 million years.
0:02:03 > 0:02:06It's hardly surprising that tourists make a beeline
0:02:06 > 0:02:08to see this iconic cliff.
0:02:08 > 0:02:11MUSIC: Summer Holiday
0:02:11 > 0:02:14And where better to have your holiday than Seaton,
0:02:14 > 0:02:17a seaside town in East Devon.
0:02:17 > 0:02:21Holiday properties to the south of here can command very high prices,
0:02:21 > 0:02:24making property here likely to be on the up.
0:02:26 > 0:02:30Well, coastal properties, without doubt,
0:02:30 > 0:02:33attract a big premium
0:02:33 > 0:02:38when it comes to comparisons with other similar sized places.
0:02:38 > 0:02:40It's where everyone wants to be, isn't it?
0:02:40 > 0:02:43The idea of owning a place overlooking the sea, absolutely ideal.
0:02:43 > 0:02:46Well, here in Seaton,
0:02:46 > 0:02:50an opportunity to get that kind of space without too much cost.
0:02:50 > 0:02:53?65,000 to ?75,000 was the guide price
0:02:53 > 0:02:58for a one-bedroom flat in a building with other flats.
0:02:58 > 0:03:00Let's have a look.
0:03:00 > 0:03:04Facing out to the side of the building, unfortunately,
0:03:04 > 0:03:06this ground-floor flat won't enjoy the views
0:03:06 > 0:03:09of its loftier neighbours in the block.
0:03:09 > 0:03:10So, through the front door
0:03:10 > 0:03:13and straight into the little entrance area there.
0:03:13 > 0:03:15And then...
0:03:15 > 0:03:17Straight away you get the impression this is not a huge flat.
0:03:17 > 0:03:19It is just a one-bedroom flat, however.
0:03:19 > 0:03:22Kitchen there - doesn't seem to be in too bad condition.
0:03:22 > 0:03:24And then a sort of central little area here.
0:03:24 > 0:03:29You've got your bedroom down that end, your loo and bathroom there.
0:03:29 > 0:03:32And then through into, really, the only other room in the property,
0:03:32 > 0:03:34which is currently your living room.
0:03:34 > 0:03:37It looks to be in pretty good condition.
0:03:37 > 0:03:40I mean, lots and lots and lots of woodchip wallpaper to get rid of,
0:03:40 > 0:03:42but some nice features.
0:03:42 > 0:03:44It's obviously been lived in relatively recently,
0:03:44 > 0:03:45doesn't smell too damp.
0:03:45 > 0:03:47And, of course,
0:03:47 > 0:03:50what you're looking for in this, without a doubt, is a view
0:03:50 > 0:03:54and, thankfully, out of that window, we get the sea, we get the horizon,
0:03:54 > 0:03:58and we get a fairly dramatic cliff view.
0:03:59 > 0:04:02Oooh. That's what we're after.
0:04:02 > 0:04:04Another thing you get with this flat
0:04:04 > 0:04:08is a share of the freehold along with the other flat-owners,
0:04:08 > 0:04:11so there are no worries about leases.
0:04:11 > 0:04:15However, there is something on the horizon that could be a worry.
0:04:17 > 0:04:21Of course, living right on the cliff has advantages.
0:04:21 > 0:04:25That's the advantage. Imagine waking up to that view in the mornings.
0:04:25 > 0:04:27It does have disadvantages, though.
0:04:27 > 0:04:30Some cliffs are, obviously, very prone to erosion,
0:04:30 > 0:04:32and that's certainly the case here.
0:04:32 > 0:04:34So you need to be very, very sure
0:04:34 > 0:04:37that you're buying something which is pretty solid,
0:04:37 > 0:04:40and that means employing the services of some good surveyors
0:04:40 > 0:04:43and people who know the area.
0:04:43 > 0:04:47Talk to the locals, find out what's going on.
0:04:47 > 0:04:48For some people, though,
0:04:48 > 0:04:51whatever price they have to pay and whatever the dangers are,
0:04:51 > 0:04:54they still want to live somewhere like this.
0:04:54 > 0:04:58Unfortunately, beautiful places like this, all around the country,
0:04:58 > 0:05:01are being affected by erosion.
0:05:01 > 0:05:02One forecast suggests
0:05:02 > 0:05:07that Devon will lose nearly 300 homes in the next century.
0:05:07 > 0:05:09So you do need to keep a cool head
0:05:09 > 0:05:15when you see a relatively low guide price in an endangered spot.
0:05:15 > 0:05:17Time to find out from an agent from the auction house
0:05:17 > 0:05:20that sold this property what the pros and cons are of buying here.
0:05:22 > 0:05:24The pros of the area are certainly that
0:05:24 > 0:05:26it's an up-and-coming regenerated town.
0:05:26 > 0:05:27There's been a lot of investment,
0:05:27 > 0:05:30particularly down on the harbour-side and seaside areas,
0:05:30 > 0:05:32so it is a place to be buying
0:05:32 > 0:05:34if you're looking to invest money into the area.
0:05:34 > 0:05:36Cons, I suppose, realistically,
0:05:36 > 0:05:39this property is located conveniently for the town centre,
0:05:39 > 0:05:41but it's also convenient for the cliff side,
0:05:41 > 0:05:43and that is getting ever so closer with the sea coming in,
0:05:43 > 0:05:46so erosion could be a big factor.
0:05:46 > 0:05:49It's certainly a serious issue to take into account,
0:05:49 > 0:05:51but let's look at the flat itself.
0:05:51 > 0:05:53What does the agent think of it?
0:05:54 > 0:05:56It's a nice little bolthole.
0:05:56 > 0:05:58Yes, you may want to do some cosmetic refreshment
0:05:58 > 0:06:00but, generally speaking, it's almost ready to go.
0:06:00 > 0:06:01Obviously for sale,
0:06:01 > 0:06:04there may be an issue with, of course, mortgage purposes.
0:06:04 > 0:06:07With the cliff being so close, would they allow it, would they permit it,
0:06:07 > 0:06:08would they lend against it?
0:06:08 > 0:06:10So certainly the lettings market
0:06:10 > 0:06:12would be the most strongest and more favourable.
0:06:12 > 0:06:16What sort of income would you expect if you rented the property?
0:06:16 > 0:06:19Once renovated, the property would fetch somewhere in the region
0:06:19 > 0:06:23of ?525 to ?550 per calendar month.
0:06:23 > 0:06:25If rented as a holiday let,
0:06:25 > 0:06:28it could make ?500 per week in high season.
0:06:28 > 0:06:30So what about on the sales market?
0:06:31 > 0:06:33The property, once renovated,
0:06:33 > 0:06:37could fetch somewhere in the region of probably ?85,000 to ?95,000.
0:06:37 > 0:06:41Well, definitely a property that you'd need to do your research on
0:06:41 > 0:06:43before you buy, but...
0:06:43 > 0:06:47the chance to get that bolthole by the sea
0:06:47 > 0:06:50for comparatively not very much money.
0:06:50 > 0:06:53Let's see who agreed and bought it when it went under the hammer.
0:06:53 > 0:06:55East Devon's Jurassic Coast at Seaton,
0:06:55 > 0:06:58a one-bedroom ground-floor flat in a period property.
0:06:58 > 0:07:02A 999-year lease from 1986.
0:07:02 > 0:07:04A bit of updating and you're ready to go.
0:07:04 > 0:07:0665 somewhere?
0:07:06 > 0:07:0860, then.
0:07:08 > 0:07:1055 for the flat.
0:07:10 > 0:07:1155. 55, front row.
0:07:11 > 0:07:1356 at the back.
0:07:13 > 0:07:15At 56. At 56. At 56.
0:07:15 > 0:07:177 if you'd like it. 57.
0:07:17 > 0:07:18Say 60.
0:07:18 > 0:07:20No? OK. 58. At 58. At 58.
0:07:20 > 0:07:2359. At 59. At 59.
0:07:23 > 0:07:25At 59. A funny place to stop. At 59.
0:07:25 > 0:07:27At 59. But it's a free country.
0:07:27 > 0:07:29At 59. Front row.
0:07:29 > 0:07:30First time.
0:07:30 > 0:07:33At 59, second time.
0:07:33 > 0:07:36At 59. Here we go. At ?59,000. And done.
0:07:36 > 0:07:3959,000. Well done, you.
0:07:39 > 0:07:41And your number is...
0:07:41 > 0:07:43P429.
0:07:43 > 0:07:46P429 on that day was held by Barry,
0:07:46 > 0:07:49smiling as he got the flat for six grand less
0:07:49 > 0:07:52than the lower band of the guide price.
0:07:52 > 0:07:57I met up with him at his ?59,000 fourth refurbishment project
0:07:57 > 0:07:59with his trusty canine companion.
0:07:59 > 0:08:02Barry, good to meet you. And you. Congratulations.
0:08:02 > 0:08:05Thank you. Tell me why you wanted to buy this flat.
0:08:05 > 0:08:07I've worked for many years in Devon.
0:08:07 > 0:08:10I live now in Milton Keynes, north of London.
0:08:10 > 0:08:13Right. I work up there. But all my long-term friends are down here.
0:08:13 > 0:08:18Oh. I spend a lot of time up and down the M5, M4, visiting.
0:08:18 > 0:08:20So I thought it would be nice to have a bolthole
0:08:20 > 0:08:22that I could stay in when I'm down here
0:08:22 > 0:08:24and then let out when I'm not using it.
0:08:24 > 0:08:26So that's exactly what you bought this for.
0:08:26 > 0:08:28Yeah. What were you looking for, then?
0:08:28 > 0:08:30Somewhere by the sea, or didn't it matter?
0:08:30 > 0:08:32Yeah, I've always lived by the sea
0:08:32 > 0:08:34and, of course, being in middle England now,
0:08:34 > 0:08:37it's not conducive to the way I've lived for all these years
0:08:37 > 0:08:39so, yeah, I've been looking for a year
0:08:39 > 0:08:42for somewhere on the coast that I could afford. Right.
0:08:42 > 0:08:44And, you know, it's difficult in Devon.
0:08:44 > 0:08:47Of course. So... But finally found this.
0:08:47 > 0:08:50Right. I'm very pleased I got it now. Yeah, for sure.
0:08:50 > 0:08:51Were you happy with what you paid?
0:08:51 > 0:08:55Well, certainly, yes. It was under the guide price, so very happy.
0:08:55 > 0:08:58You know, the views... Yeah. ..are just amazing.
0:08:58 > 0:09:00And Seaton's a nice town. Yeah.
0:09:00 > 0:09:02It's a shame it's not on the front, isn't it? Yes.
0:09:02 > 0:09:04But if it had been on the front of this block,
0:09:04 > 0:09:07I guess it would have been a lot more expensive.
0:09:07 > 0:09:08I think so, yeah.
0:09:08 > 0:09:12The size appealed to me. I know it's quite small, but this is a bolthole,
0:09:12 > 0:09:15I don't want to have to be doing a lot of maintenance.
0:09:15 > 0:09:19It's in quite sound condition, quite nice order,
0:09:19 > 0:09:21but just very old-fashioned,
0:09:21 > 0:09:25and I think I can sort of make it... bring it up-to-date quite quickly.
0:09:25 > 0:09:26Right. I didn't want somewhere big
0:09:26 > 0:09:30that would take me months and months of work, really.
0:09:30 > 0:09:32I would like to have this done quite quickly
0:09:32 > 0:09:33and be able to use it and let it.
0:09:33 > 0:09:36Makes perfect sense. What do you do when you're not doing this?
0:09:36 > 0:09:38I'm a gardener. Oh, OK.
0:09:38 > 0:09:41So you don't want to garden here, then, do you? I don't!
0:09:41 > 0:09:44Yeah, it's what I do all the time, yeah.
0:09:44 > 0:09:47Talking of gardens, that's probably where that little fella
0:09:47 > 0:09:49is going to end up spending a lot of his time.
0:09:49 > 0:09:52Tell me about him. Harry? Yes.
0:09:52 > 0:09:55He's a little rescue dog that I took on four weeks ago.
0:09:55 > 0:09:59Oh! I had a fox terrier, he died last year, he was 18,
0:09:59 > 0:10:02and it was the first one I'd ever had, and such a great breed,
0:10:02 > 0:10:05I'd been looking for another one for a year since.
0:10:05 > 0:10:07He's a fox terrier? Yeah. Right.
0:10:07 > 0:10:10And why Harry?
0:10:10 > 0:10:13I think a dog should have a name with an "E" sound on the end,
0:10:13 > 0:10:16so I went through all the E-sounding names and...
0:10:16 > 0:10:17We liked Harry.
0:10:20 > 0:10:22'Hm - wait a minute.
0:10:22 > 0:10:25'So, given Barry's "E-sound" philosophy,
0:10:25 > 0:10:28'what could you have called Harry?
0:10:28 > 0:10:30'Let's see - Charlie?
0:10:30 > 0:10:32'Benji?
0:10:32 > 0:10:34'Monty? No, that's a bit full-on.
0:10:34 > 0:10:37'Micky? Hm...nah. Buddy?
0:10:37 > 0:10:40'How about taking inspiration from the movies or TV?
0:10:40 > 0:10:44'Could have been Rocky. Or Scooby.
0:10:44 > 0:10:46'Or Snoopy.
0:10:46 > 0:10:48'What about Skippy?
0:10:48 > 0:10:50'Uh-uh, no, that's a marsupial.
0:10:50 > 0:10:53'Anyway, back to the flat.'
0:10:53 > 0:10:55So tell me what you're going to do to it, then.
0:10:55 > 0:10:58Strip the walls off, cos it's woodchip throughout apart from this.
0:10:58 > 0:11:01Yeah, lovely. Get it all off, but it is...
0:11:01 > 0:11:03I don't know what the plaster is going to be like underneath.
0:11:03 > 0:11:05Hopefully it's reasonably sound.
0:11:05 > 0:11:09Just light colours throughout. All that old pine, I shall paint.
0:11:09 > 0:11:11New carpets.
0:11:11 > 0:11:14Some new fittings in the bathroom - not a new bathroom suite,
0:11:14 > 0:11:16I think it's quite OK as it is.
0:11:16 > 0:11:20And a tidy-up in the kitchen, really, perhaps new cupboards.
0:11:20 > 0:11:21New cupboard doors. Right.
0:11:21 > 0:11:24But I shall leave the hob and the oven and...
0:11:24 > 0:11:26I mean, it's a deceased estate,
0:11:26 > 0:11:28so everything's just been left here. Yeah.
0:11:28 > 0:11:30There's fridge, freezer, dishwasher.
0:11:30 > 0:11:32Ideal for you, then. Yeah.
0:11:32 > 0:11:34Now, we are on a cliff-top property.
0:11:34 > 0:11:36Have you done any investigations into how solid the cliff is
0:11:36 > 0:11:38and all that kind of stuff?
0:11:38 > 0:11:40Not personally, but... Right.
0:11:40 > 0:11:43There is a website about all of this,
0:11:43 > 0:11:46an East Devon website, that has logged all of that
0:11:46 > 0:11:49and, yeah, it is an issue.
0:11:49 > 0:11:53The coast road between Seaton and Beer subsided about a year ago,
0:11:53 > 0:11:56which isn't too far from the front of this property.
0:11:56 > 0:11:59Ah. Probably about 20 feet of it is gone.
0:11:59 > 0:12:03Right. But, I mean, that happens a lot on the south Devon coast.
0:12:03 > 0:12:06It's a worry, but I think it will...
0:12:06 > 0:12:08I'll probably see it out. Right.
0:12:08 > 0:12:10I'll go before that goes.
0:12:10 > 0:12:14So no other major plans for investment in terms of property?
0:12:14 > 0:12:17This is really just for you and it fits the bill perfectly.
0:12:17 > 0:12:20I have another house in Cornwall, that I bought at auction last year,
0:12:20 > 0:12:22which has been done up and is up for sale.
0:12:22 > 0:12:25Oh, right. When that goes, I shall probably look for something else.
0:12:25 > 0:12:29OK. But I mean, no, it's not serious, it's a hobby.
0:12:29 > 0:12:33So what kind of costs have you allocated for doing it?
0:12:33 > 0:12:37Maximum 3,000, I'm hoping 2,500. Right.
0:12:37 > 0:12:39So how long is it going to take you to do what you'd like?
0:12:39 > 0:12:43I'd like to think two months, probably three.
0:12:43 > 0:12:45Well, congratulations. Thank you. Good luck with it.
0:12:45 > 0:12:47Thank you very much. Hopefully you and Harry are very happy.
0:12:47 > 0:12:49We will be. Definitely.
0:12:51 > 0:12:54Well, it seems like it's the perfect spot
0:12:54 > 0:12:57for gardener Barry and dog Harry.
0:12:57 > 0:12:59Yes. He's aware of the issues
0:12:59 > 0:13:02and they don't seem to be too much of a concern to him,
0:13:02 > 0:13:04which is really important.
0:13:04 > 0:13:05Forewarned is forearmed.
0:13:05 > 0:13:07If he is happy, then jolly good luck to him,
0:13:07 > 0:13:10a good price to pay for, as he says, a bolthole by the sea.
0:13:10 > 0:13:13How will he get on renovating it? You can find out later in the show.
0:13:19 > 0:13:23# Why? Cos they lovin' the crew
0:13:23 > 0:13:24# They lovin' the crew
0:13:24 > 0:13:26# They lovin' the crew... #
0:13:26 > 0:13:30It seems like everyone loves Crewe in Cheshire.
0:13:30 > 0:13:36The town grew up around the railway station built in 1837.
0:13:36 > 0:13:39It's this strategic position on the West Coast Main Line
0:13:39 > 0:13:44that has meant Crewe has always been a great location for manufacturers,
0:13:44 > 0:13:46from munitions in the Second World War
0:13:46 > 0:13:48to luxury cars of today.
0:13:51 > 0:13:54Talking of great locations, this is a good one.
0:13:54 > 0:13:56Just ten minutes away from the M6
0:13:56 > 0:13:58and two minutes away from the railway station
0:13:58 > 0:14:00is the property I'm here to see.
0:14:00 > 0:14:03It's a three-bed semidetached property
0:14:03 > 0:14:05with a guide price of ?100,000.
0:14:05 > 0:14:07Let's have a look inside.
0:14:07 > 0:14:10# Long drive, long night... #
0:14:10 > 0:14:13I know this is a 1930s semi,
0:14:13 > 0:14:16but were cars really 100 foot long then?
0:14:16 > 0:14:18Joking aside, off-street parking is great,
0:14:18 > 0:14:23even though it is a bit of a trek to the door.
0:14:23 > 0:14:26# Long drive, long night... #
0:14:26 > 0:14:28OK, so straight in, you've got the stairs
0:14:28 > 0:14:30going up to the bedrooms,
0:14:30 > 0:14:35into the living room, front room area, which...
0:14:35 > 0:14:37It hasn't been touched for some time.
0:14:37 > 0:14:41Very old-fashioned decor, bay window here,
0:14:41 > 0:14:44which, surprisingly, has double-glazed windows.
0:14:44 > 0:14:47Good sign is they have a gas fire, so there is gas in the property.
0:14:47 > 0:14:51Into the dining room, maybe, very small.
0:14:51 > 0:14:54Polystyrene tiles, they will definitely have to come down.
0:14:54 > 0:14:58You've got a bathroom off to the left, and...
0:14:58 > 0:15:00Maybe a pantry or some kind of cupboard.
0:15:00 > 0:15:01OK, into the kitchen.
0:15:03 > 0:15:05Which...you would have to start all over again.
0:15:05 > 0:15:08It's a decent size, or could be a decent size,
0:15:08 > 0:15:10if you were to configure it in the right way,
0:15:10 > 0:15:13and I can see that, in the corners, there's a little bit of damp,
0:15:13 > 0:15:17maybe some leakage coming from the roof of the extension,
0:15:17 > 0:15:20so there's a bit of space in here, it's just how you use it.
0:15:24 > 0:15:27It really does need a rethink.
0:15:27 > 0:15:31For a three-bed family house, this is not a family-sized bathroom,
0:15:31 > 0:15:34and its location downstairs isn't ideal, either.
0:15:36 > 0:15:38I'd also be tempted to see if I could get rid of
0:15:38 > 0:15:40some of these dividing walls here,
0:15:40 > 0:15:43and create a nice modern kitchen-diner.
0:15:44 > 0:15:47You'd also need to modernise the decor.
0:15:47 > 0:15:49So a long list of works already.
0:15:54 > 0:15:56So as you come upstairs to the three bedrooms,
0:15:56 > 0:15:59the master bedroom is there to the front of the property,
0:15:59 > 0:16:03the smaller of the three is there, and this is bedroom two,
0:16:03 > 0:16:07with some of the original features, the skirting boards, there,
0:16:07 > 0:16:09in a lovely shade of pink, as you can see,
0:16:09 > 0:16:11and these original windows.
0:16:11 > 0:16:15I'm pretty sure nowadays they are called industrial chic,
0:16:15 > 0:16:16I'll have you know.
0:16:16 > 0:16:18But what is nice about this property
0:16:18 > 0:16:21is it's lovely to take a step back in time.
0:16:23 > 0:16:27That's about the only good thing you can say.
0:16:27 > 0:16:29There's not much room for an upstairs loo,
0:16:29 > 0:16:31unless you lose the smallest bedroom.
0:16:31 > 0:16:33No central heating, either,
0:16:33 > 0:16:36so enjoy the trip down memory lane while you can,
0:16:36 > 0:16:41as this house needs a lot of modernisation.
0:16:41 > 0:16:44# Now let me take a trip down memory lane
0:16:44 > 0:16:46# Comin' outta Queensbridge
0:16:46 > 0:16:49# Now let me take a trip down memory lane... #
0:16:49 > 0:16:54Out into the back garden, which I think is a decent space.
0:16:54 > 0:16:57You've got off-street parking down the side of the property,
0:16:57 > 0:17:00you've got a garage, and you've also got a shed
0:17:00 > 0:17:02at the end of the garden.
0:17:02 > 0:17:04As I look back at the property,
0:17:04 > 0:17:07I can see that the extension has a flat roof,
0:17:07 > 0:17:10so that may explain the damp stains in the extension,
0:17:10 > 0:17:14but I don't think it would take much to turn this around
0:17:14 > 0:17:17into a nice back garden at all.
0:17:18 > 0:17:21The garden is pretty much the only part
0:17:21 > 0:17:24that makes you think, "Gnome sweet gnome."
0:17:24 > 0:17:29I think you really have to focus your efforts on the inside, here.
0:17:29 > 0:17:32But Crewe is a town where property is in demand,
0:17:32 > 0:17:34so we called in an agent
0:17:34 > 0:17:36from the auction house who sold it
0:17:36 > 0:17:39to tell us what he thinks of the property,
0:17:39 > 0:17:40guided at ?100,000.
0:17:43 > 0:17:47I think you need to consider this as...a fair old project.
0:17:47 > 0:17:48It's a bit of a shell,
0:17:48 > 0:17:51and it's certainly going to need a re-wire,
0:17:51 > 0:17:54central heating system, certainly kitchen, bathroom,
0:17:54 > 0:17:57possibly a damp course, new windows,
0:17:57 > 0:18:00a lot of skimming, a lot of replastering.
0:18:00 > 0:18:03The new owners have certainly got their work cut out on this one.
0:18:04 > 0:18:08Maybe it's better we make a list of what doesn't need doing.
0:18:11 > 0:18:14What about the loo and the layout issues?
0:18:14 > 0:18:19I would definitely consider maybe putting the bathroom upstairs,
0:18:19 > 0:18:22or there is potential to convert the loft in these properties.
0:18:22 > 0:18:24Other people in the area have done that.
0:18:26 > 0:18:28That could mean a lot of time and money,
0:18:28 > 0:18:33but could it be worth spending on this property guided at 100 grand?
0:18:33 > 0:18:37What could it achieve on the sale and lettings market?
0:18:37 > 0:18:40I think, once the property's renovated,
0:18:40 > 0:18:44I definitely think it would achieve around about ?145,000 mark.
0:18:44 > 0:18:47From a rental point of view, once it's been modernised,
0:18:47 > 0:18:49as a three-bedroom property,
0:18:49 > 0:18:51I think you'd be looking in the region
0:18:51 > 0:18:54of ?575-?600 per calendar month.
0:18:56 > 0:18:59And what about the resale price with a loft conversion?
0:19:01 > 0:19:03There is a limit, there is a ceiling price
0:19:03 > 0:19:05on these semidetached houses,
0:19:05 > 0:19:09and I think that would be around about ?165,000.
0:19:11 > 0:19:15This is a solid 1930s semidetached property.
0:19:15 > 0:19:17Now, you would have to get yourself a skip,
0:19:17 > 0:19:19clear it out and start again.
0:19:19 > 0:19:22New bathroom, new kitchen, and new windows.
0:19:22 > 0:19:24Basically, new everything.
0:19:24 > 0:19:26Let's see what happened when it went under the hammer.
0:19:34 > 0:19:36Good spot, good-looking house, lot 16.
0:19:36 > 0:19:3885, going to say, to start.
0:19:38 > 0:19:39Got a bid at... 85 bid, thank you.
0:19:39 > 0:19:43?85,000. 90, can I see now?
0:19:43 > 0:19:4495?
0:19:44 > 0:19:47There wasn't much interest to start, but the bids slowly climbed.
0:19:47 > 0:19:50We rejoin the bidding at ?98,000.
0:19:50 > 0:19:52At ?98,000.
0:19:52 > 0:19:55Standing left, then. 99 anywhere else?
0:19:55 > 0:19:5799.
0:19:57 > 0:19:59Make it 100. At 90...
0:19:59 > 0:20:01Half, he's saying, 99 and a half.
0:20:01 > 0:20:03100. 100.
0:20:03 > 0:20:05And a half?
0:20:05 > 0:20:09At 100,000, gentleman in the white shirt, at ?100,000.
0:20:09 > 0:20:10Another 500 anywhere else?
0:20:10 > 0:20:13At ?100,000 for the first time.
0:20:13 > 0:20:16?100,000 for the second time.
0:20:16 > 0:20:18Third and final time...
0:20:18 > 0:20:20?100,000.
0:20:20 > 0:20:22GAVEL BANGS Sold to you, sir, well done.
0:20:24 > 0:20:26Bang-on the guide of 100 grand,
0:20:26 > 0:20:29Adam in the white polo shirt secured a first property,
0:20:29 > 0:20:31along with his brother Thomas on the left.
0:20:35 > 0:20:37The brothers have bought jointly,
0:20:37 > 0:20:39as they look to build a business in property.
0:20:39 > 0:20:43So I wanted to find out about their first steps on the ladder.
0:20:44 > 0:20:46Adam, nice to meet you. Congratulations.
0:20:46 > 0:20:49Thank you very much. Your very first one. It is, yes.
0:20:49 > 0:20:53Tell us why you decided to venture into the property world.
0:20:53 > 0:20:58It was just something we decided we wanted to do, start of last year,
0:20:58 > 0:21:01so we saved up and this was the one we came to,
0:21:01 > 0:21:06we wanted a three-bed family house that we could renovate.
0:21:06 > 0:21:09We went to the bank, started saving, putting money away,
0:21:09 > 0:21:13we set ourselves a goal to buy one by the end of the year.
0:21:13 > 0:21:15We live around here, we saw this come up, so yeah, we went for it.
0:21:15 > 0:21:18So you know the area, then? Yeah, yeah, we do, yeah.
0:21:18 > 0:21:21And whose decision was that, to go into a family business?
0:21:21 > 0:21:24Well...a joint one, I think.
0:21:24 > 0:21:27Well, I'd have liked to have done it on my own, but he earns more wages than me, so...
0:21:27 > 0:21:30LAUGHING: That's clever. Yeah, yeah, very clever.
0:21:30 > 0:21:31Get him involved for his money. Yeah, yeah.
0:21:35 > 0:21:38If there ever was an expression of brotherly love,
0:21:38 > 0:21:41it's raiding your sibling's wage packet
0:21:41 > 0:21:43to finance a property empire.
0:21:43 > 0:21:46But the boys are playing nice together...at the moment.
0:21:46 > 0:21:50They want to fit the house and sell on, splitting the profit.
0:21:50 > 0:21:54# Brotherly love... #
0:21:54 > 0:21:57So you're on the board, you've got your first property.
0:21:57 > 0:22:00Are you happy with what you've got? Yeah, yeah, yeah. We are.
0:22:00 > 0:22:04Yeah, obviously, first thing, clear out everything that's in here.
0:22:04 > 0:22:06And then start from scratch, basically.
0:22:06 > 0:22:09We're going to...replaster, rewire,
0:22:09 > 0:22:12there's no central heating, so we're going to put a combi boiler in,
0:22:12 > 0:22:14and just give it a nice, clean finish,
0:22:14 > 0:22:19new kitchen, new bathroom, and go from there.
0:22:25 > 0:22:29The agent from earlier suggested a post-renovation sales price
0:22:29 > 0:22:30of 140 grand,
0:22:30 > 0:22:33and with the brothers forking out 100 grand for the property,
0:22:33 > 0:22:37they are opting not to go into the loft or move the loo,
0:22:37 > 0:22:40to hopefully maximise the profit on their first venture,
0:22:40 > 0:22:42which brings me to a key question.
0:22:43 > 0:22:46And in regards to spending money on this,
0:22:46 > 0:22:48obviously Tom's going to be spending a lot more...
0:22:48 > 0:22:51Tell us about the budget or what you've saved up
0:22:51 > 0:22:53that you can spend on this.
0:22:53 > 0:22:55We're going to go for between 15,000 and 20,000,
0:22:55 > 0:22:59try and keep it in there and hopefully we'll fall within that
0:22:59 > 0:23:01and get a nice finish within that, as well.
0:23:01 > 0:23:03And what do you expect most of that, sort of, 15, 20 grand
0:23:03 > 0:23:06is going to be spent on, the majority of it?
0:23:06 > 0:23:09Obviously, like, your kitchen, your bathroom,
0:23:09 > 0:23:11boiler, central heating...
0:23:11 > 0:23:14We're going to try and do a lot of the work ourselves.
0:23:14 > 0:23:17Brother's a gas engineer, so he's going to do all that.
0:23:17 > 0:23:20I'm quite handy, so I'll be doing kitchens, bathrooms,
0:23:20 > 0:23:22painting, decorating, we've got a couple of friends to rein in
0:23:22 > 0:23:25for plastering and electrics, so, yeah,
0:23:25 > 0:23:26try to keep the costs down.
0:23:26 > 0:23:30That's brilliant. You're going to do the kitchens and bathrooms yourself?
0:23:30 > 0:23:33Yeah. Have you done it before? Yeah, yeah, yeah. Oh.
0:23:33 > 0:23:35I work as a site manager, so...
0:23:35 > 0:23:37We do a lot of the work.
0:23:37 > 0:23:40All coming out now, see, you've got the skills within yourself.
0:23:40 > 0:23:43Yeah. Your brother, as well. Yeah. And you're roping in your mates.
0:23:43 > 0:23:47What are your mates going to do? I've got a good mate of mine,
0:23:47 > 0:23:50he's a plasterer, so he's going to be doing
0:23:50 > 0:23:53the finishing touches to the walls.
0:23:53 > 0:23:56Buy him as much pizza as I can and beer, as well. Exactly!
0:23:56 > 0:23:58Will you get mates rates, or...?
0:23:58 > 0:24:00Not with him, no. DION LAUGHS
0:24:00 > 0:24:02Tell us about your timescales, as well, Adam.
0:24:02 > 0:24:05Yeah, I'd like to think we'd be nearly there in about six months.
0:24:05 > 0:24:07Obviously, we both work full time,
0:24:07 > 0:24:09so it's going to be evenings and weekends,
0:24:09 > 0:24:11and we'll try and do it in that sort of timescale.
0:24:11 > 0:24:14You play a little football, as well. Yeah, yeah, I try to, I try to.
0:24:14 > 0:24:16For your local... Give your local team a mention.
0:24:16 > 0:24:17Haslington. Haslington, yeah?
0:24:17 > 0:24:19And how are they doing? Not very well.
0:24:19 > 0:24:21Only just joined last week, so... Have you? Yeah.
0:24:21 > 0:24:24All change, now, cos you've joined. Yeah, maybe, yeah.
0:24:24 > 0:24:26Promotion on the cards already.
0:24:26 > 0:24:28Listen, pal, I wish you all the best. Yeah.
0:24:28 > 0:24:30Hope it goes well. Yeah. I'm sure it will, between you.
0:24:30 > 0:24:32Yeah. Thank you, cheers. Take care. Thank you.
0:24:34 > 0:24:35Adam and his brother Thomas
0:24:35 > 0:24:39have wisely decided to invest into the property world.
0:24:39 > 0:24:41They've saved up their own money, they're planning ahead,
0:24:41 > 0:24:43but how will they get on as a partnership?
0:24:43 > 0:24:45You can find out later on in the programme.
0:24:47 > 0:24:49Still to come, Lucy is uncovering some nasties
0:24:49 > 0:24:52in South Norwood, London.
0:24:52 > 0:24:54Well, I think there's obvious signs of a leak,
0:24:54 > 0:24:56or something terrible happening up there.
0:24:58 > 0:25:03And we find out if Crewe is the city of brotherly love.
0:25:03 > 0:25:06It is hard, finishing work, coming after work, your weekends...
0:25:10 > 0:25:13Back to Seaton in East Devon now,
0:25:13 > 0:25:14where I saw a ground-floor flat
0:25:14 > 0:25:17in a lovely building very near a cliff,
0:25:17 > 0:25:21which is on the Jurassic Coast with erosion issues.
0:25:21 > 0:25:25That's a worry. However, for me, its position had a big bonus.
0:25:27 > 0:25:31Thankfully, out of that window, we get the sea, we get the horizon,
0:25:31 > 0:25:36and we get a fairly dramatic cliff view.
0:25:36 > 0:25:38Ooh...that's what we're after.
0:25:38 > 0:25:41The inside of the one-bedroom flat was pretty good,
0:25:41 > 0:25:43and, with a little bit of modernisation,
0:25:43 > 0:25:45it would make a great pied-a-terre.
0:25:45 > 0:25:49It was sold at auction for under the guide band
0:25:49 > 0:25:52of ?65,000-75,000 to Barry,
0:25:52 > 0:25:56who paid ?59,000 for a seaside bolthole.
0:25:58 > 0:26:02Gardner Barry had previously lived in Devon for 15 years
0:26:02 > 0:26:05and was planning that he, and rescue dog Harry,
0:26:05 > 0:26:08would have somewhere to stay when they came to visit friends
0:26:08 > 0:26:10from their home in Milton Keynes.
0:26:10 > 0:26:12What were you looking for, then?
0:26:12 > 0:26:14Somewhere by the sea? Or didn't it matter?
0:26:14 > 0:26:15Yeah, I've always lived by the sea,
0:26:15 > 0:26:17and of course, being in middle England, now,
0:26:17 > 0:26:21it's not conducive to the way I've lived for all of these years,
0:26:21 > 0:26:23so, yeah, I've been looking for a year
0:26:23 > 0:26:24for somewhere on the coast that I could afford.
0:26:24 > 0:26:29Barry was content to take the risk of being so close to the cliff
0:26:29 > 0:26:32in exchange for the affordability factor.
0:26:32 > 0:26:35And with his maximum budget of ?3,000
0:26:35 > 0:26:37and a three-month timescale,
0:26:37 > 0:26:39he was hoping he'd soon be able to relax.
0:26:39 > 0:26:43Well, we've returned eight months later to see how he got on.
0:26:50 > 0:26:53The kitchen has been brought bang up-to-date
0:26:53 > 0:26:55with some rearranging and some white units.
0:26:58 > 0:27:00The old false ceiling has been stripped back,
0:27:00 > 0:27:03creating a much brighter and lighter space.
0:27:06 > 0:27:10The beige bedroom now looks like a proper seaside home.
0:27:12 > 0:27:14New windows have been fitted throughout,
0:27:14 > 0:27:17and the frames have been brightened up
0:27:17 > 0:27:19with a lick of fresh white paint.
0:27:21 > 0:27:24He's kept the bathroom suite, as planned,
0:27:24 > 0:27:27but it's all looking much fresher with white paint.
0:27:27 > 0:27:31And he's replaced that old shower curtain with a modern screen.
0:27:33 > 0:27:36The pokey living room feels much more spacious,
0:27:36 > 0:27:39with grey and white decor and modern accessories.
0:27:39 > 0:27:42So let's hear more about the changes from Harry.
0:27:42 > 0:27:44Sorry, I mean Barry.
0:27:44 > 0:27:49The colour scheme was very '80s, brown and miserable.
0:27:49 > 0:27:53So it was a case of really fixing these windows up,
0:27:53 > 0:27:55installing new double-glazed windows
0:27:55 > 0:27:59and then changing this from brown to white and just lightening the room.
0:27:59 > 0:28:01It's just been redecoration in here.
0:28:01 > 0:28:04I think the result's quite good, it's light and bright.
0:28:04 > 0:28:08And I think the white surround now really enhances that view.
0:28:08 > 0:28:11The white frame makes all the difference,
0:28:11 > 0:28:14but one thing I'm not quite so pleased to still see
0:28:14 > 0:28:18is the '80s-tastic woodchip wallpaper.
0:28:18 > 0:28:21Barry didn't want to risk damaging the plasterwork, so he's left it.
0:28:23 > 0:28:28I went around and sort of repaired where it was...damaged.
0:28:28 > 0:28:32And two good coats of paint, and I think it looks OK.
0:28:32 > 0:28:35OK, we'll let you off with the woodchip, Barry.
0:28:35 > 0:28:37The flat is looking great.
0:28:37 > 0:28:39But what does he like the best?
0:28:40 > 0:28:43The view. I mean, that's the reason...
0:28:43 > 0:28:47When I viewed this property, I walked in and...
0:28:47 > 0:28:48Those windows, and the view, probably,
0:28:48 > 0:28:50are my favourite part for me.
0:28:50 > 0:28:53He could have saved himself a pretty penny decorating,
0:28:53 > 0:28:56if he's only going to look out the window,
0:28:56 > 0:28:59but did he keep an eye on his maximum ?3,000 budget?
0:29:01 > 0:29:06I've ended up spending about 2,800, which I think's pretty reasonable
0:29:06 > 0:29:07for all the stuff that I've had to do,
0:29:07 > 0:29:10but it wasn't difficult - when I looked at the property,
0:29:10 > 0:29:12I knew it wasn't a complete rebuild,
0:29:12 > 0:29:14so, yeah, I've come in on budget.
0:29:14 > 0:29:18But it took him twice as long as his original timescale
0:29:18 > 0:29:20of two to three months.
0:29:20 > 0:29:23So why did it take so long?
0:29:23 > 0:29:26You arrive tired, not prepared,
0:29:26 > 0:29:30having not brought the right stuff and then having to go out again
0:29:30 > 0:29:34and get materials, so it has taken me longer than I expected,
0:29:34 > 0:29:37but it's been a lovely summer, haven't minded that too much.
0:29:37 > 0:29:39Barry was set to relax here
0:29:39 > 0:29:42and enjoy the view for some time to come,
0:29:42 > 0:29:44but there's been a change of plan.
0:29:47 > 0:29:48I've found another property in Plymouth,
0:29:48 > 0:29:52which is closer to my friends, which I'm now working on, as well.
0:29:52 > 0:29:55So the plan has changed slightly with this,
0:29:55 > 0:29:57although I definitely don't want to sell it.
0:29:57 > 0:30:01In an ideal world, I would let it for holiday-makers,
0:30:01 > 0:30:03which would then free it up for me to use some of the time,
0:30:03 > 0:30:04which would be lovely.
0:30:04 > 0:30:08But failing that, I shall do a permanent let.
0:30:09 > 0:30:12Let's see what kind of holiday rental Barry could achieve
0:30:12 > 0:30:16on his ?61,800 investment.
0:30:16 > 0:30:18We invited two local estate agents along
0:30:18 > 0:30:20to give us their opinions on the flat.
0:30:22 > 0:30:26It's got a nice feeling of space, nice high ceilings,
0:30:26 > 0:30:29and you've got some nice views from the property.
0:30:29 > 0:30:33The selling features of this flat are probably the allocated parking,
0:30:33 > 0:30:36the sea views, and its location to town.
0:30:36 > 0:30:39There's active coastal erosion not far from the property,
0:30:39 > 0:30:41and that has been ongoing in recent years.
0:30:41 > 0:30:43That would have an impact on the price,
0:30:43 > 0:30:45wouldn't be mortgageable,
0:30:45 > 0:30:48so you're looking at someone that's a cash purchase, basically.
0:30:48 > 0:30:51We know Barry isn't going to sell but, out of interest,
0:30:51 > 0:30:53has he added value to the property?
0:30:55 > 0:30:57This flat would probably resell for in the region
0:30:57 > 0:30:59of ?100,000 in today's market.
0:30:59 > 0:31:01This property would sell
0:31:01 > 0:31:05for ?120,000 or something in the region of that.
0:31:05 > 0:31:07I'm shocked. Yes, I...
0:31:09 > 0:31:11I had no idea it would be anywhere near that figure.
0:31:11 > 0:31:14Wow! I'm gobsmacked, too.
0:31:14 > 0:31:18That would mean a potential profit of just over ?58,000.
0:31:18 > 0:31:22Could the rental values grab as much attention?
0:31:22 > 0:31:23For the rental side of things,
0:31:23 > 0:31:25we would be looking to market the property
0:31:25 > 0:31:28at 495 per calendar month.
0:31:28 > 0:31:30If you were to use it as a holiday let,
0:31:30 > 0:31:34we would be looking for ?450 a week, and then off-season,
0:31:34 > 0:31:37we'd be looking to go for 250.
0:31:37 > 0:31:42It could residentially let for ?575 a month,
0:31:42 > 0:31:46and it could holiday let for ?450 per week
0:31:46 > 0:31:48during the peak summer months,
0:31:48 > 0:31:51and about half of that out of the season.
0:31:51 > 0:31:57The top value for a long-term let could give Barry a yield of 11%!
0:31:57 > 0:31:59So what does he make of the maths?
0:31:59 > 0:32:04Yeah, I would definitely be swayed towards a permanent let.
0:32:04 > 0:32:07Certainly, for a year, I would see how it would go
0:32:07 > 0:32:12and as long as I'm not missing the beach too much for that,
0:32:12 > 0:32:13and I've got a good tenant,
0:32:13 > 0:32:15I would probably stay with that, yes.
0:32:17 > 0:32:19SONG: The Teddy Bears' Picnic
0:32:19 > 0:32:22This is South Norwood in Greater London.
0:32:22 > 0:32:25South Norwood was originally covered in woodland,
0:32:25 > 0:32:28which formed part of the Great North Wood,
0:32:28 > 0:32:30hence the name.
0:32:30 > 0:32:33And while Lucy won't be seeing any teddy bears here,
0:32:33 > 0:32:36you might just see an eagle, which, if you're not in the know,
0:32:36 > 0:32:39is the name of the local club supporters.
0:32:41 > 0:32:44The property I'm here to see is very close to Selhurst Park.
0:32:44 > 0:32:46It's home to Crystal Palace Football Club.
0:32:46 > 0:32:50It could get pretty busy around here on match days.
0:32:50 > 0:32:52Well, here it is, it's a two-bed first-floor flat
0:32:52 > 0:32:54in this mid-terrace building,
0:32:54 > 0:32:59and it went to auction with a guide price of ?170,000 plus.
0:33:02 > 0:33:04Nice street and nice-looking building.
0:33:04 > 0:33:09It's impressive so far, but BEAR with Lucy as she climbs the stairs.
0:33:12 > 0:33:15Well, as you can hear, from the echo...
0:33:16 > 0:33:18This flat has been stripped back.
0:33:18 > 0:33:20It's rather bare, not much in here,
0:33:20 > 0:33:23but it's got a few little redeeming features that I like.
0:33:23 > 0:33:26The staircase could be quite nice, and the banisters,
0:33:26 > 0:33:29and the little spindles, once painted up.
0:33:29 > 0:33:33You've got a nice big bedroom at the back with a sash window.
0:33:33 > 0:33:36Some sort of little cupboard here, which is a bit weird,
0:33:36 > 0:33:39there is no glass in it, and, well, the bathroom here,
0:33:39 > 0:33:42again, it's all in a really bad state,
0:33:42 > 0:33:44and it's as though all the bathroom furniture
0:33:44 > 0:33:46has just been rammed in a room that's too small for it.
0:33:46 > 0:33:48Not much you can do about that, sadly,
0:33:48 > 0:33:50because it is quite a small bathroom.
0:33:50 > 0:33:52Along this corridor,
0:33:52 > 0:33:55and into the first room on the left, which is the kitchen.
0:33:55 > 0:33:57Now, I'm quite surprised at that,
0:33:57 > 0:33:59because quite a lot of the properties I've seen before
0:33:59 > 0:34:00that are similar to this,
0:34:00 > 0:34:02you would normally have this as a bedroom,
0:34:02 > 0:34:04and the kitchen would have been at the back,
0:34:04 > 0:34:07so I'm thinking a little bit of rearranging in here
0:34:07 > 0:34:08wouldn't go amiss.
0:34:08 > 0:34:10Woodchip wallpaper everywhere!
0:34:10 > 0:34:12And, well, I think there's obvious signs of a leak
0:34:12 > 0:34:15or something terrible happening up there with the roof,
0:34:15 > 0:34:18because the ceiling is sort of coming down,
0:34:18 > 0:34:21so that definitely needs to be looked at, but, yeah,
0:34:21 > 0:34:25some TLC needs to be injected into this building, that is for sure.
0:34:25 > 0:34:28But it's not all doom and gloom,
0:34:28 > 0:34:31as there is something that could spark your interest.
0:34:31 > 0:34:32So this is the lounge.
0:34:32 > 0:34:35Now, nothing wrong with this room, other than it's a little bit small,
0:34:35 > 0:34:37but on the positive side, you've got lovely light
0:34:37 > 0:34:40coming through the windows here, nice and big,
0:34:40 > 0:34:43and this glorious fireplace.
0:34:43 > 0:34:45I mean, how lovely is that?
0:34:45 > 0:34:48So, definitely make a feature with that.
0:34:48 > 0:34:50Bit of a downside for me, this...
0:34:50 > 0:34:51HOLLOW KNOCKING
0:34:51 > 0:34:54..rather papery partition wall has been plonked up
0:34:54 > 0:34:57and I'm not sure it's doing anybody any good.
0:34:57 > 0:35:00Now, I talked earlier about a potential layout change,
0:35:00 > 0:35:02so this is the other little room.
0:35:02 > 0:35:05I'm thinking this is, like, a study or a baby's room,
0:35:05 > 0:35:07it's very small to call a bedroom.
0:35:07 > 0:35:10What about taking this wall out,
0:35:10 > 0:35:12putting this kitchen into this space,
0:35:12 > 0:35:15having a potentially nice, open-plan kitchen area
0:35:15 > 0:35:17with all three windows, then?
0:35:17 > 0:35:19Imagine that lovely light coming through.
0:35:19 > 0:35:24Change the kitchen into a much bigger bedroom, and voila!
0:35:24 > 0:35:26You've got a much nicer living space.
0:35:26 > 0:35:27# Voila... #
0:35:27 > 0:35:31Merci, Lucy. Those plans sound tres bien.
0:35:31 > 0:35:34But before you take any liberty with this flat,
0:35:34 > 0:35:35you'll have to check your lease
0:35:35 > 0:35:40because, usually, structural changes like moving walls and kitchens,
0:35:40 > 0:35:42will need the freeholder's permission.
0:35:44 > 0:35:48But the major issue with this flat is this property is leasehold,
0:35:48 > 0:35:52and the lease has approximately 69 years left to run.
0:35:52 > 0:35:57Now, that's not ideal because, once a lease is under 80 years,
0:35:57 > 0:35:59the value of the property begins to fall,
0:35:59 > 0:36:02the shorter the lease, the bigger the price drop,
0:36:02 > 0:36:05and that's because a lot of mortgage companies
0:36:05 > 0:36:07are not keen to lend on short leases.
0:36:07 > 0:36:09You can legally apply to extend your lease,
0:36:09 > 0:36:13but you have to own a property for at least two years
0:36:13 > 0:36:14before we can do that,
0:36:14 > 0:36:18and of course, a lease extension could cost a pretty penny,
0:36:18 > 0:36:19so be warned.
0:36:21 > 0:36:23In fact, lenders aren't keen on lending
0:36:23 > 0:36:26if there is less than 70 years left.
0:36:26 > 0:36:29So financing this could be an issue.
0:36:29 > 0:36:32With lease extensions and layout changes,
0:36:32 > 0:36:35even if you got it for anything like the guide price
0:36:35 > 0:36:39of ?175,000 plus, it's going to cost a lot.
0:36:39 > 0:36:43So time to ask a local estate agent what profits, if any,
0:36:43 > 0:36:44could be made here.
0:36:45 > 0:36:48It's a good layout, good size,
0:36:48 > 0:36:51and also, there is a lot of potential -
0:36:51 > 0:36:54with regards to the smaller bedroom, turn that into a kitchen,
0:36:54 > 0:36:57and where the kitchen is existingly, at the moment,
0:36:57 > 0:36:58turn that into a bedroom,
0:36:58 > 0:37:01giving the extra space that people would need.
0:37:01 > 0:37:03We are all in agreement
0:37:03 > 0:37:06that a layout change would benefit this flat immensely,
0:37:06 > 0:37:09but will the close proximity of the football ground
0:37:09 > 0:37:10potentially put people off?
0:37:12 > 0:37:14Being very close to a football ground,
0:37:14 > 0:37:16depending on the individuals,
0:37:16 > 0:37:20some would probably find it very annoying on the event days,
0:37:20 > 0:37:22parking may be an issue, noise,
0:37:22 > 0:37:24in and out of getting into the property
0:37:24 > 0:37:25could be a potential problem.
0:37:28 > 0:37:31The real downside to this flat is the short lease.
0:37:31 > 0:37:33So how will that affect the value?
0:37:34 > 0:37:36Depending upon the lease,
0:37:36 > 0:37:38if the lease is extended at the same time
0:37:38 > 0:37:40and done to a very high standard,
0:37:40 > 0:37:43I would suggest the marketing will be somewhere in the region
0:37:43 > 0:37:45of around ?300,000.
0:37:45 > 0:37:47If you didn't extend the lease,
0:37:47 > 0:37:49I would suggest somewhere in the region
0:37:49 > 0:37:51of around ?250,000.
0:37:51 > 0:37:55Well, it's a flat that footy fans might love,
0:37:55 > 0:37:57because of how close it is to the stadium,
0:37:57 > 0:37:59but it needs a lot of work.
0:37:59 > 0:38:01It needs modernising, updating,
0:38:01 > 0:38:03there's also that short lease to deal with,
0:38:03 > 0:38:05and we all know that can get costly.
0:38:05 > 0:38:08So who is ready to take on this property with its problems?
0:38:08 > 0:38:11Let's find out who bid for it at auction.
0:38:16 > 0:38:19Two-bedroom first-floor flat in need of modernisation.
0:38:19 > 0:38:21200. Start me off.
0:38:21 > 0:38:23Don't want to go to much lower.
0:38:23 > 0:38:26180. Try and help.
0:38:26 > 0:38:27180, thank you.
0:38:27 > 0:38:30After a slow start, the bidding heats up,
0:38:30 > 0:38:32and we rejoin at 204,000.
0:38:32 > 0:38:35204, new place.
0:38:35 > 0:38:38206. 208.
0:38:38 > 0:38:40210. 212.
0:38:41 > 0:38:44212, yes or no? Hope it's the bank manager.
0:38:44 > 0:38:47If not, it's 210 on my right, for the first,
0:38:47 > 0:38:49210 for the second,
0:38:49 > 0:38:52210 for the third and final time...
0:38:52 > 0:38:54GAVEL BANGS Sold, 210.
0:38:54 > 0:38:58While the successful bidder Alistair looks a little apprehensive,
0:38:58 > 0:39:01there's no mistaking girlfriend Becky's delight
0:39:01 > 0:39:06at them getting the property for ?210,000.
0:39:06 > 0:39:08Alistair and Becky both work for charities.
0:39:08 > 0:39:11They came along to the flat to tell Lucy more,
0:39:11 > 0:39:15and brought along baby Saul, who is four months old.
0:39:17 > 0:39:20Becky, Alistair, and baby Saul, how lovely to meet you all today.
0:39:20 > 0:39:23Congratulations, and lovely to see you,
0:39:23 > 0:39:24I'm glad you've come along.
0:39:24 > 0:39:26So let's find out, you know, what happened,
0:39:26 > 0:39:29and the story behind you guys buying this.
0:39:29 > 0:39:32OK. Well, I've always lived in places
0:39:32 > 0:39:33that need quite a bit of work,
0:39:33 > 0:39:35so I've done places that I've lived in before,
0:39:35 > 0:39:38and then we decided between us to pool our resources
0:39:38 > 0:39:41and go to auction and buy, and we ended up buying this place.
0:39:41 > 0:39:44Was it quite an interesting way of buying this?
0:39:44 > 0:39:45How did you feel about going to auction
0:39:45 > 0:39:48and actually bidding for something?
0:39:48 > 0:39:51It was exciting - I mean, he bid on one before this,
0:39:51 > 0:39:53but didn't get it, but I wasn't there for that,
0:39:53 > 0:39:57but I had a feeling about this one, so I made sure I came through to see this one through,
0:39:57 > 0:39:58and, yeah, you got it.
0:39:58 > 0:40:00Becky, how are you going to be involved in this?
0:40:00 > 0:40:02Surely you've got your hands full, literally?
0:40:02 > 0:40:04I don't tend to have much involvement,
0:40:04 > 0:40:06I'm enjoying my maternity leave,
0:40:06 > 0:40:09so I'm going to carry on having lunches and coffees with friends.
0:40:09 > 0:40:11So, Alistair, why have you chosen to do this?
0:40:11 > 0:40:14Is this a property for you both to live in?
0:40:14 > 0:40:15We haven't quite decided yet.
0:40:15 > 0:40:17I mean, we've got a place that we live in the minute,
0:40:17 > 0:40:20so, at the moment, it's more of an investment, we're probably...
0:40:20 > 0:40:22It obviously needs a lot of work, so we'll do it up,
0:40:22 > 0:40:24and then we're not sure whether we'll sell it on or rent it,
0:40:24 > 0:40:27or what we'll do, depends how long it takes and how much it costs.
0:40:27 > 0:40:28Depends on the lease, as well.
0:40:28 > 0:40:33A lot does depend on the short lease being resolved.
0:40:33 > 0:40:35The couple looked into it before they bid,
0:40:35 > 0:40:38and they reckon there is a possibility of sorting it out
0:40:38 > 0:40:40and they think, or at least hope,
0:40:40 > 0:40:43that it's going to cost around ?15,000.
0:40:45 > 0:40:47It depends on the freeholder a bit,
0:40:47 > 0:40:49and if we had to wait two years to extend it officially,
0:40:49 > 0:40:51then maybe we'll have to do that.
0:40:51 > 0:40:54If it's up to 20, then it's within kind of our budget.
0:40:54 > 0:40:55But if it's more than 20...
0:40:55 > 0:40:58So it's a bit of a risk that you guys have taken, anyway.
0:40:58 > 0:41:02But whether... We couldn't really afford most of the other properties,
0:41:02 > 0:41:03so we had to take a risk in some area,
0:41:03 > 0:41:06so we figured a lease was maybe the area to take the risk in.
0:41:06 > 0:41:07Are you working at the moment?
0:41:07 > 0:41:09Yeah, I work full-time, so it'll be a question
0:41:09 > 0:41:11of doing it at weekends, and I won't to do it all myself,
0:41:11 > 0:41:13I'll have people helping out, so...
0:41:13 > 0:41:15I mean, it's going to be quite challenging, isn't it?
0:41:15 > 0:41:18You have got a new baby, new things happening in your life,
0:41:18 > 0:41:21and a lot of your weekends are going to be taken up by being here.
0:41:21 > 0:41:24Yeah. It's probably not the best timing in the world,
0:41:24 > 0:41:25but we'll give it a go, yeah.
0:41:25 > 0:41:27But hopefully, if we make a success of it,
0:41:27 > 0:41:30it will mean, you know, we'll have more chance
0:41:30 > 0:41:32to spend more time with him in the future,
0:41:32 > 0:41:34so we can cut back on hours at work, perhaps.
0:41:34 > 0:41:38Absolutely. So what are your plans? What do you intend doing here?
0:41:38 > 0:41:40There's a chance of moving the kitchen,
0:41:40 > 0:41:42maybe to the room at the front,
0:41:42 > 0:41:44and having the kitchen as it is now as a second bedroom,
0:41:44 > 0:41:47so we'll have two decent-sized bedrooms, so that's an option.
0:41:47 > 0:41:50And obviously, apart from that, it just needs everything doing,
0:41:50 > 0:41:53new bathroom, new kitchen, new walls, new everything, so...
0:41:53 > 0:41:56It really does just need new everything, doesn't it?
0:41:56 > 0:41:58Except for the doors. We'd probably keep the doors and the banister
0:41:58 > 0:42:00and hopefully the fireplace in the lounge,
0:42:00 > 0:42:02if we can restore that.
0:42:02 > 0:42:04Yeah, it's lovely to see some original features,
0:42:04 > 0:42:06and I think, by keeping those things,
0:42:06 > 0:42:08it's going to look fantastic.
0:42:08 > 0:42:10Quite a lot of people on this road have done loft conversions.
0:42:10 > 0:42:12Any thoughts on that?
0:42:12 > 0:42:15They have done, I'm not sure we can afford it.
0:42:15 > 0:42:17I mean, it would be a nice idea if we could afford it,
0:42:17 > 0:42:19and also, it's very low.
0:42:19 > 0:42:23It seems to be quite low, the top of the house to the ceiling,
0:42:23 > 0:42:24so I'm not sure how much space there is up there.
0:42:24 > 0:42:27We'll look into it, but it's probably out of our budget.
0:42:27 > 0:42:30I think timescale-wise, as well, it would be nice to turn this around
0:42:30 > 0:42:33and sell it within six months, ideally,
0:42:33 > 0:42:35so to do a loft extension as well
0:42:35 > 0:42:37might...just make things take longer.
0:42:37 > 0:42:40What about the fact that there's little patches of damp?
0:42:40 > 0:42:42I've looked around, there is water that's been coming in on the roof.
0:42:42 > 0:42:44Does that bother you? Are there roof issues?
0:42:44 > 0:42:47No. I don't think they're current, I think they're historic.
0:42:47 > 0:42:50There was obviously an issue here with the leak coming down
0:42:50 > 0:42:52through the roof, but it's been patched up, the roof,
0:42:52 > 0:42:54so it just needs internally fixing up.
0:42:54 > 0:42:56What sort of budget have you guys got to do the work here?
0:42:56 > 0:43:01So I'm hoping about 20 grand would be enough,
0:43:01 > 0:43:04but obviously I'm prepared for it to go slightly over that,
0:43:04 > 0:43:07hopefully not too much, but that's the kind of budget were hoping for.
0:43:07 > 0:43:10That's not including the lease. Yeah, not including the lease.
0:43:10 > 0:43:13Is this something you think you'll both quite enjoy for the future?
0:43:13 > 0:43:15Hopefully! Hopefully. Time will tell.
0:43:15 > 0:43:18We'll see how this one goes first, I think, but, yeah, that's the idea.
0:43:18 > 0:43:21Guys, good luck with this project, it's been fantastic meeting you,
0:43:21 > 0:43:23and I'm really excited to see how far you get on
0:43:23 > 0:43:26and how much the lease ends up costing you.
0:43:26 > 0:43:28Congratulations and good luck with this.
0:43:28 > 0:43:30Thank you. And lovely to meet baby Saul.
0:43:32 > 0:43:35Well, this is the first investment property for Becky and Alistair
0:43:35 > 0:43:37and they've got their new little baby Saul,
0:43:37 > 0:43:39but they've got that lease to sort out,
0:43:39 > 0:43:41so they've got a lot on their plate.
0:43:41 > 0:43:43How are they all going to get on?
0:43:43 > 0:43:46Well, you can find out later in the programme.
0:43:49 > 0:43:50Earlier in the show,
0:43:50 > 0:43:54everyone's plans and dreams seemed pretty good on paper,
0:43:54 > 0:43:57but property development is more than just a paper trail.
0:43:57 > 0:43:59It certainly is.
0:43:59 > 0:44:03So have those dreams turned into a reality,
0:44:03 > 0:44:04or more of a nightmare?
0:44:04 > 0:44:06Let's go back and find out.
0:44:09 > 0:44:11Back now to the town of Crewe in Cheshire,
0:44:11 > 0:44:15where I looked around this three-bed 1930s semi,
0:44:15 > 0:44:17which was a bit of a trip down memory lane.
0:44:19 > 0:44:22Some of the original features, the skirting boards there,
0:44:22 > 0:44:25in a lovely shade of pink, as you can see.
0:44:25 > 0:44:28And these original windows.
0:44:28 > 0:44:30I'm pretty sure nowadays they are called industrial chic.
0:44:30 > 0:44:32# Oh, freak out
0:44:32 > 0:44:35# Le freak, c'est chic
0:44:35 > 0:44:37# Freak out... #
0:44:37 > 0:44:39It was a little bit more freak than chic,
0:44:39 > 0:44:42and it seemingly had an endless to-do list,
0:44:42 > 0:44:46but come auction day, industrious brothers Adam and Thomas
0:44:46 > 0:44:47were up for the challenge.
0:44:49 > 0:44:54They paid 100 grand for this, their first-ever property together,
0:44:54 > 0:44:57and they planned to renovate it, sell it on, and split the profit.
0:44:59 > 0:45:01Whose decision was that, to go into a family business?
0:45:01 > 0:45:04Well...a joint one, I think.
0:45:04 > 0:45:07I'd have liked to have done it on my own, but he earns more wages than me, so...
0:45:07 > 0:45:09LAUGHING: That's clever!
0:45:10 > 0:45:13The brothers had a budget of 15-20 grand
0:45:13 > 0:45:15and a timescale of six months.
0:45:18 > 0:45:2121 months later, we are back.
0:45:26 > 0:45:31They may have taken their time, but they have not taken it easy.
0:45:31 > 0:45:34The dividing wall has gone to open up the back rooms
0:45:34 > 0:45:37into a fantastic and huge kitchen-diner.
0:45:41 > 0:45:44So what's become of that avocado bathroom?
0:45:52 > 0:45:55It's been replaced with a small WC and utility room.
0:45:55 > 0:45:57But where's the family bathroom?
0:46:01 > 0:46:04Upstairs, the rear bedroom is a contemporary bathroom,
0:46:04 > 0:46:06with stylish chrome fittings.
0:46:06 > 0:46:10It's very nice, and just what a modern family needs.
0:46:10 > 0:46:15But why did the brothers sacrifice that third bedroom?
0:46:15 > 0:46:17We didn't want a downstairs bathroom,
0:46:17 > 0:46:20we wanted one upstairs, and we didn't want a two-bed,
0:46:20 > 0:46:23we wanted a three-bed, so the extension was a solution.
0:46:25 > 0:46:27That's right, they've gone all out,
0:46:27 > 0:46:30adding a second-floor extension above the original kitchen,
0:46:30 > 0:46:34meaning they'd still have three good-sized bedrooms.
0:46:36 > 0:46:40The guys have done a huge amount of work themselves,
0:46:40 > 0:46:43but they've had their mates around to help, too.
0:46:43 > 0:46:48My friend Bri, he's done all the electrics, top to bottom,
0:46:48 > 0:46:52and my footballing friend Ian did the extension for me.
0:46:52 > 0:46:54And... Yeah, we were labourers for a week, weren't we?
0:46:54 > 0:46:58Yeah, yeah, I had my person who works with me, Billy,
0:46:58 > 0:47:00he's done most of the landscaping stuff with me.
0:47:00 > 0:47:02If you know people, it does make it a bit easier.
0:47:02 > 0:47:05Obviously we have had to get recommendations off people
0:47:05 > 0:47:06for certain things.
0:47:06 > 0:47:08Didn't always work, that, did it?
0:47:08 > 0:47:12No, not really. Yeah, so be careful when you give recommendations,
0:47:12 > 0:47:15is my advice on that.
0:47:15 > 0:47:18Thomas's advice is spot-on.
0:47:18 > 0:47:22You should always get independent recommendations
0:47:22 > 0:47:23for any tradespeople.
0:47:23 > 0:47:26Make sure you ask other customers and, if possible,
0:47:26 > 0:47:28try and get to see a bit of the work they've done.
0:47:28 > 0:47:30And in the end, they got a good team together,
0:47:30 > 0:47:35and they've had the house rewired, stripped back, re-plastered,
0:47:35 > 0:47:39installed central heating and double glazing.
0:47:39 > 0:47:41The list goes on.
0:47:41 > 0:47:44So what are they most pleased about?
0:47:44 > 0:47:45I'd say... Patio, I think.
0:47:45 > 0:47:47Yeah!
0:47:47 > 0:47:50Just the final finish, just knowing what work we put in
0:47:50 > 0:47:52and seeing, like, how it looks after,
0:47:52 > 0:47:54great satisfaction, really, isn't it?
0:47:54 > 0:47:57Yeah. It just looks, yeah, really sharp. Yeah.
0:47:57 > 0:48:01They've done a cracking and fairly ambitious job here,
0:48:01 > 0:48:04especially considering this is their first project.
0:48:04 > 0:48:06So what was the toughest challenge?
0:48:08 > 0:48:10Obviously, when you're working full-time, both of us,
0:48:10 > 0:48:13and you're trying to do half the work yourself, it is hard.
0:48:13 > 0:48:16You're finishing work, you're coming after work, your weekends...
0:48:16 > 0:48:19You don't realise how long it's going to take, what is involved.
0:48:19 > 0:48:21It's been an experience. But we've got it done, haven't we?
0:48:21 > 0:48:24I think, yeah, I think we changed the initial plan, as well,
0:48:24 > 0:48:26put an extension in and what not,
0:48:26 > 0:48:29took a while for planning permission to come through, so...
0:48:29 > 0:48:31It wasn't just, like, getting it out -
0:48:31 > 0:48:33we wanted to make it a real quality job.
0:48:34 > 0:48:37So did that change of plan with the extension
0:48:37 > 0:48:40end up blowing their budget of 15-20 grand?
0:48:42 > 0:48:46I'd say in the region of 25-30.
0:48:46 > 0:48:48We've done a rough estimate, haven't we? Yeah.
0:48:48 > 0:48:52Worked out what we've done, and again, it's just the planning,
0:48:52 > 0:48:55you're trying to work out what you're going to spend on what,
0:48:55 > 0:48:58and you're not exactly sure, with it being the first time, what you're going to spend.
0:48:58 > 0:49:03Ten grand over budget with an unplanned extension ain't half bad.
0:49:03 > 0:49:06So is there more property developing in the future?
0:49:08 > 0:49:10You've got, maybe, an opening, don't you?
0:49:10 > 0:49:12Yeah, me and the missus are getting a place together,
0:49:12 > 0:49:14so that's the next step, really.
0:49:14 > 0:49:17Yeah. My girlfriend wants to get a renovation with me,
0:49:17 > 0:49:18so hopefully we'll...
0:49:18 > 0:49:21A bit of rivalry. We'll give that a go, yeah.
0:49:21 > 0:49:26With sibling rivalry on the cards, we'd better get the values quickly.
0:49:27 > 0:49:29We invited two local estate agents
0:49:29 > 0:49:34to tell us what they thought of Adam and Thomas's 130 grand investment,
0:49:34 > 0:49:36starting with the agent who saw it originally.
0:49:37 > 0:49:40Good to come back and have a look at what they've done.
0:49:40 > 0:49:42I think they've done a really nice job on it.
0:49:42 > 0:49:44Lovely property, and they've obviously done
0:49:44 > 0:49:46a lot of work to it since I was last here.
0:49:46 > 0:49:48They have put an extension on the back,
0:49:48 > 0:49:51that's created a bathroom upstairs, which is what it's needed,
0:49:51 > 0:49:53and three really good-sized bedrooms.
0:49:53 > 0:49:55I'm very impressed with the property,
0:49:55 > 0:49:58it's a really nice, three-bedroom, semidetached house.
0:49:58 > 0:50:00I am very impressed with the bathroom, kitchen,
0:50:00 > 0:50:03especially the Indian stone patio outside,
0:50:03 > 0:50:05it's been really well done.
0:50:05 > 0:50:08And the front doorstep matches, as well, so brings it together.
0:50:08 > 0:50:10Glowing reports all round.
0:50:10 > 0:50:14It sounds like the brothers have a bit of a knack for this business.
0:50:14 > 0:50:19But will the brothers make a profit on their 130 grand investment?
0:50:19 > 0:50:22From a sales point of view, you'd be looking in the region
0:50:22 > 0:50:23of ?170,000.
0:50:23 > 0:50:28I think I would put it on the market somewhere between 165 and ?170,000,
0:50:28 > 0:50:30and I would hope to achieve very near to that.
0:50:30 > 0:50:32That's very nice, yeah. Happy with that, yeah.
0:50:32 > 0:50:34Happy with that, yeah. Yeah.
0:50:34 > 0:50:39I was hoping for 160 when we first bought it.
0:50:39 > 0:50:41Before we did the extension,
0:50:41 > 0:50:43we were looking around 150, weren't we?
0:50:43 > 0:50:45Yeah. But, yeah, that's quite... Yeah.
0:50:45 > 0:50:47No, I'm more than happy with that. Yeah.
0:50:47 > 0:50:52With a potential profit of 40 grand, minus taxes and fees,
0:50:52 > 0:50:54the brothers should be very happy with themselves.
0:50:54 > 0:50:57But it sounds as though they have another kind of door
0:50:57 > 0:50:59to be grateful for.
0:50:59 > 0:51:02The lady next door, obviously, she's had to put up with a lot,
0:51:02 > 0:51:04with all the work going on and that...
0:51:04 > 0:51:06Brought a lot of cakes around. As you can see.
0:51:14 > 0:51:17Back, now, to South Norwood in Greater London,
0:51:17 > 0:51:20a stone's throw away from Selhurst Stadium.
0:51:22 > 0:51:25It was here that Lucy saw this two-bed mid-terrace flat,
0:51:25 > 0:51:28guided at ?170,000.
0:51:28 > 0:51:32A handsome building on the outside, inside was not so good-looking.
0:51:34 > 0:51:38Well, the bathroom here, again, it's all in a really bad state,
0:51:38 > 0:51:41and it's as though all the bathroom furniture's just rammed in a room
0:51:41 > 0:51:43that's too small for it.
0:51:43 > 0:51:44Not much you can do about that, sadly,
0:51:44 > 0:51:46because it is quite a small bathroom.
0:51:48 > 0:51:50The whole flat needed rearranging,
0:51:50 > 0:51:54and it also had a short 69-year lease
0:51:54 > 0:51:55that would require renewal.
0:51:58 > 0:52:00Sold, 210.
0:52:00 > 0:52:03So, if they didn't have their hands full already,
0:52:03 > 0:52:06new parents to baby Saul, Alistair and Becky
0:52:06 > 0:52:11paid ?210,000 at auction for their first joint property venture.
0:52:11 > 0:52:15And for the time being, at least, they were feeling optimistic.
0:52:17 > 0:52:19It's going to be quite challenging, isn't it?
0:52:19 > 0:52:22Cos you have got a new baby, new things happening in your life,
0:52:22 > 0:52:25and a lot of your weekends are going to be taken up by being here.
0:52:25 > 0:52:27Yeah. Probably not the best timing in the world,
0:52:27 > 0:52:29but...we'll give it a go, yeah.
0:52:29 > 0:52:33"Not the best timing" is a bit of an understatement.
0:52:33 > 0:52:36But they did have a realistic budget of 20,000,
0:52:36 > 0:52:40and wanted the flat done and sold in six months.
0:52:41 > 0:52:46We are back five months later to see how they get on.
0:52:48 > 0:52:51Well, that's a definite improvement.
0:52:51 > 0:52:55The kitchen is now clean, modern, and has a tiled floor to boot.
0:52:58 > 0:53:00But that's not the biggest change.
0:53:04 > 0:53:08The dividing wall between the kitchen and lounge is gone,
0:53:08 > 0:53:11making way for a new, open-plan living space.
0:53:14 > 0:53:18The good news is that they have kept that beautiful original fireplace.
0:53:22 > 0:53:24It's all looking much smarter,
0:53:24 > 0:53:28but it's definitely not what they discussed with Lucy.
0:53:28 > 0:53:31So, as Becky and Saul are feeling poorly,
0:53:31 > 0:53:34here's Alistair to talk us through the changes.
0:53:35 > 0:53:37Originally, the estate agent suggested
0:53:37 > 0:53:41that we might move the kitchen into the front bedroom space.
0:53:41 > 0:53:44We decided against that, we thought that would be too small
0:53:44 > 0:53:47and it'd be nicer to have a big, open-plan kitchen lounge area,
0:53:47 > 0:53:49so we knocked through.
0:53:49 > 0:53:51We also made the second bedroom longer
0:53:51 > 0:53:56by removing the storage space that wasn't really serving any function.
0:53:56 > 0:53:58Speaking of functionality,
0:53:58 > 0:54:00what's become of that dingy, cramped bathroom?
0:54:05 > 0:54:08With a new bathroom suite and cheerful floor tiles,
0:54:08 > 0:54:12it is certainly more welcoming for morning ablutions.
0:54:14 > 0:54:16And they've managed to make the bathroom a little bigger
0:54:16 > 0:54:18by nicking a bit of space from the master bedroom.
0:54:20 > 0:54:23The removal of the fitted wardrobes next door
0:54:23 > 0:54:25redresses the balance of the space.
0:54:27 > 0:54:31Original features that we kept have been the windows, the sash windows,
0:54:31 > 0:54:34especially the one in the bathroom, and the fireplace in the front room,
0:54:34 > 0:54:37and also, we've kept all the original doors,
0:54:37 > 0:54:39sanded them down, waxed them, so they look nice.
0:54:39 > 0:54:42We're always going on about retaining original features,
0:54:42 > 0:54:47and we love them, but not everyone loves them as much as we do.
0:54:47 > 0:54:51The lack of cosy double glazing may put some buyers off,
0:54:51 > 0:54:54although the good news is that they have double glazed
0:54:54 > 0:54:56the living room and small bedroom.
0:54:56 > 0:55:00They have done a grand job, and they've done it in five months,
0:55:00 > 0:55:01which isn't bad.
0:55:04 > 0:55:06Alistair has stuck to his schedule,
0:55:06 > 0:55:11and he's managed to keep within that ?20,000 budget.
0:55:11 > 0:55:14I've ended up spending about ?15,000 on it so far,
0:55:14 > 0:55:16and it's almost finished, so I'm quite happy with that.
0:55:16 > 0:55:20Main costs have been complete rewiring, new plumbing,
0:55:20 > 0:55:21new radiators, new windows.
0:55:21 > 0:55:23Cos I've done a lot of work myself,
0:55:23 > 0:55:25I guess I've kept the labour costs down in that way.
0:55:25 > 0:55:29Under budget! Phew, that's not common on Homes Under The Hammer.
0:55:29 > 0:55:31So, well done, Alistair.
0:55:31 > 0:55:35But he still has that lease extension to negotiate,
0:55:35 > 0:55:38so up till now, what has been the hardest part of the project?
0:55:39 > 0:55:41I think the hardest thing
0:55:41 > 0:55:45has been juggling work and the flat and a young baby,
0:55:45 > 0:55:47and trying to keep that all going,
0:55:47 > 0:55:49that's been the hardest challenge for me, really,
0:55:49 > 0:55:53and just the worst thing was how bad a condition the flat was in,
0:55:53 > 0:55:56even worse than it looked to the naked eye when we first saw it.
0:55:56 > 0:56:00Note to self, don't renovate with a new baby if you can avoid it.
0:56:00 > 0:56:04That's the hard bit. What about the good bits?
0:56:04 > 0:56:06So I feel like I've learnt a lot doing this project,
0:56:06 > 0:56:10it's been a really good experience, it's been hard work,
0:56:10 > 0:56:12but I'm glad that I've done it now that it's finished.
0:56:13 > 0:56:16It's always the way, but let's see what the professionals thought
0:56:16 > 0:56:18of Alistair's hard work.
0:56:18 > 0:56:20We invited along two local estate agents
0:56:20 > 0:56:25to get their opinion of the couple's ?225,000 investment.
0:56:27 > 0:56:30It's in a great road, right next to Crystal Palace Football Stadium,
0:56:30 > 0:56:32it's going to be really sought-after.
0:56:32 > 0:56:34It's a London postcode
0:56:34 > 0:56:36and it's been nicely, you know, refurbished.
0:56:36 > 0:56:40The vendors have done a good job in making...maximising more space
0:56:40 > 0:56:41in the property.
0:56:41 > 0:56:45They could have double glazed some of the back windows,
0:56:45 > 0:56:47a bit better on the finish on the decor
0:56:47 > 0:56:49but, overall, it's pretty good.
0:56:49 > 0:56:53The biggest issue affecting value with this flat is the short lease,
0:56:53 > 0:56:57so what kind of value does this refurbished flat have currently?
0:56:57 > 0:57:00The sales valuation with the current lease
0:57:00 > 0:57:03would be in the region of ?270,000.
0:57:03 > 0:57:04Should the lease not be extended,
0:57:04 > 0:57:09then we're looking at a figure of around ?295,000-?300,000.
0:57:09 > 0:57:12The top value could see Alistair and Becky
0:57:12 > 0:57:15earn a pre-tax profit of ?75,000,
0:57:15 > 0:57:19with the lease extension adding approximately ?25,000
0:57:19 > 0:57:20to the value of the property.
0:57:20 > 0:57:23But considering the couple are going to rent the flat out
0:57:23 > 0:57:24for the foreseeable future,
0:57:24 > 0:57:27what could they achieve on the rental market?
0:57:29 > 0:57:33The rental valuation for this property would be around
0:57:33 > 0:57:35?1,250 per calendar month.
0:57:35 > 0:57:38So, for rental, you'd be looking at a figure of
0:57:38 > 0:57:41?1,250 per calendar month.
0:57:41 > 0:57:44That rental figure would give Alistair and Becky
0:57:44 > 0:57:46a yield of just over 6.5%.
0:57:46 > 0:57:48How does all that sound?
0:57:50 > 0:57:52OK, that's nice to hear, that makes all the effort
0:57:52 > 0:57:53seem like it's been worthwhile.
0:57:53 > 0:57:56I mean, I definitely will be extending the lease, so...
0:57:56 > 0:57:59Those higher figures are nice to hear.
0:57:59 > 0:58:04So has Alistair got any advice for aspiring property developers?
0:58:04 > 0:58:07Don't do it straight after you've had a new baby, firstly!
0:58:07 > 0:58:09Be prepared for quite a lot of hard work,
0:58:09 > 0:58:11it was harder work than maybe I thought it would be,
0:58:11 > 0:58:15and make sure you've got some good tradesmen to help you out.
0:58:18 > 0:58:20Well, that's it for today, but fret not,
0:58:20 > 0:58:24we'll be back in no time with more stories from the front line
0:58:24 > 0:58:26of the property battlefront.
0:58:26 > 0:58:28Yeah, so prepare yourself,
0:58:28 > 0:58:30and we'll be back here very soon on Homes Under The Hammer.
0:58:30 > 0:58:31Goodbye. Goodbye.
0:59:01 > 0:59:03# We could change this whole world with a piano
0:59:03 > 0:59:04# Grab a bass... #
0:59:04 > 0:59:08Stop! Stop! I said a little bit of your guitar. Just...
0:59:08 > 0:59:09Stop getting carried away.