Episode 15

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0:00:02 > 0:00:03Hello, welcome to the show.

0:00:03 > 0:00:05I have lost count of the number of properties

0:00:05 > 0:00:09that we've featured on Homes Under The Hammer over the years.

0:00:09 > 0:00:11Yes, there have been thousands,

0:00:11 > 0:00:14and we've covered most of the country doing so.

0:00:14 > 0:00:17But today is a special day, because we are joined by

0:00:17 > 0:00:19our brand-new member on the team, Martel Maxwell.

0:00:19 > 0:00:21- Hey!- Hello!- Welcome.

0:00:21 > 0:00:24- Hi!- Are you looking forward to getting on with it?- I can't wait.

0:00:24 > 0:00:26Property is a real passion of mine.

0:00:26 > 0:00:30So I can't wait to get stuck into some real action at the auctions.

0:00:30 > 0:00:33So what are we waiting for? Let's see some homes under the hammer!

0:00:58 > 0:01:01Well, Martel, if property is your thing,

0:01:01 > 0:01:03you've come to the right place.

0:01:03 > 0:01:05And if you like a good deal, as we do,

0:01:05 > 0:01:07the auction house is a great place to start.

0:01:07 > 0:01:10Yes, but there are no guarantees and, of course,

0:01:10 > 0:01:13you have to do your research before you stick your paddle in the air

0:01:13 > 0:01:16and do that successful bid.

0:01:16 > 0:01:19Well, let's see who did exactly that, and what they bought,

0:01:19 > 0:01:21on today's show.

0:01:21 > 0:01:24In Gillingham, Kent, I'm wondering,

0:01:24 > 0:01:26is it an art installation or a garden?

0:01:26 > 0:01:30You've got car seats, toys, trampoline - all sorts.

0:01:32 > 0:01:36In north Chingford, London, this house may just cast a spell.

0:01:37 > 0:01:40Now, the catalogue does say a few magic words...

0:01:42 > 0:01:45In Wolverhampton, this house has a Hammer House of Horror effect...

0:01:47 > 0:01:49CREAKING

0:01:51 > 0:01:52Spooky.

0:01:52 > 0:01:55All of these properties have been sold at auction,

0:01:55 > 0:01:56and we'll find out who bought them

0:01:56 > 0:01:59and what they paid for them when they went under the hammer.

0:01:59 > 0:02:01Sold, 250, well bid.

0:02:05 > 0:02:08Sitting on the banks of the River Medway in Kent

0:02:08 > 0:02:11is the famous Chatham dockyard, which has transformed into

0:02:11 > 0:02:15a commercial port and modern urban living area.

0:02:15 > 0:02:18It's also brought money into the area as a film location

0:02:18 > 0:02:21for You Only Live Twice and Les Miserables.

0:02:21 > 0:02:25But regeneration isn't exclusive to the docks.

0:02:28 > 0:02:32Today, I'm a four-minute train ride away in Gillingham,

0:02:32 > 0:02:33home of the dock's army base.

0:02:33 > 0:02:36My mission? To scout out our filming location.

0:02:39 > 0:02:41When it comes to property investment,

0:02:41 > 0:02:42location is so important.

0:02:42 > 0:02:45And in this case, we're just a ten-minute walk from the hospital,

0:02:45 > 0:02:48and a university campus is even closer.

0:02:48 > 0:02:51Now, this says to me you've got a ready supply of tenants,

0:02:51 > 0:02:54and that's great for potential rental income.

0:02:54 > 0:02:58The property I'm here to see is this two-bed Victorian terrace,

0:02:58 > 0:03:01with a guide price of £125,000.

0:03:01 > 0:03:03Let's see what it's like inside.

0:03:06 > 0:03:09Straight into what is a reception room,

0:03:09 > 0:03:11and, you know, it's a beautiful, bright day outside,

0:03:11 > 0:03:13and suddenly it feels a bit gloomy -

0:03:13 > 0:03:17and there is a smell, a real smell of damp.

0:03:17 > 0:03:19So, we'll see what's causing that.

0:03:19 > 0:03:23It's tired, it's dated, it's a wee bit sad and unloved.

0:03:23 > 0:03:26Good news is, you do have central heating,

0:03:26 > 0:03:28and also some double glazing.

0:03:28 > 0:03:32OK, there's a fireplace there, actually, which you could restore,

0:03:32 > 0:03:33add a bit of character.

0:03:33 > 0:03:36Upstairs, you've got the textured ceiling,

0:03:36 > 0:03:38which you'd probably want to update.

0:03:38 > 0:03:42Through to a second living area, and through to your kitchen as well,

0:03:42 > 0:03:45you've got woodchip on the walls, which is never great,

0:03:45 > 0:03:46it's a nightmare to come off.

0:03:46 > 0:03:49And also, often, there's damage underneath to the plasterwork,

0:03:49 > 0:03:53so that could be a big plastering job for a buyer.

0:03:53 > 0:03:54And, ah...

0:03:54 > 0:03:57This is where our damp smell is coming from.

0:03:57 > 0:04:00The ceiling in the kitchen isn't just damp.

0:04:00 > 0:04:03That's not just damp, that looks like it's rotted through.

0:04:03 > 0:04:07Now, that could be an extension and possibly a flat roof,

0:04:07 > 0:04:10which always has a shelf life.

0:04:10 > 0:04:12Past the kitchen, you have your bathroom,

0:04:12 > 0:04:15which absolutely looks like it needs to come out, but more than that,

0:04:15 > 0:04:17it's not ideal having it down here.

0:04:17 > 0:04:20If you can put it beside the bedroom area, much better,

0:04:20 > 0:04:23depending on if there's room to do that.

0:04:23 > 0:04:25I guess there's only one way to find out.

0:04:26 > 0:04:29So, as I venture upstairs to see what delights await me,

0:04:29 > 0:04:32you can have a better look around the downstairs,

0:04:32 > 0:04:33and enjoy some Chris Rea.

0:04:33 > 0:04:38MUSIC: Crack That Mould by Chris Rea

0:04:38 > 0:04:40A lot of work and clearing to be done here,

0:04:40 > 0:04:43but one job would be top of my list.

0:04:43 > 0:04:45# Crack that mould... #

0:04:45 > 0:04:47Precisely, Chris!

0:04:47 > 0:04:49And your tip for that bathroom?

0:04:49 > 0:04:51# Crack that mould... #

0:04:51 > 0:04:53My sentiments exactly!

0:04:53 > 0:04:55Ugh.

0:04:57 > 0:05:00Upstairs to our bedrooms, you've got the textured ceiling,

0:05:00 > 0:05:05which we'd probably want to update, and the whole place looks tired,

0:05:05 > 0:05:08in need of modernisation, but the big question is,

0:05:08 > 0:05:10is there room for that bathroom?

0:05:11 > 0:05:14MUSIC: I Still Haven't Found What I'm Looking For by U2

0:05:14 > 0:05:22# But I still haven't found what I'm looking for... #

0:05:22 > 0:05:24Now, looking in both bedrooms, yes,

0:05:24 > 0:05:26it would be ideal to have a bathroom up here,

0:05:26 > 0:05:31but you'd really be compromising the space of not-very-big bedrooms.

0:05:31 > 0:05:34I think it's a very big job, and maybe not worth it.

0:05:36 > 0:05:38Now to the outside space.

0:05:38 > 0:05:40There's not much to speak of out at the front -

0:05:40 > 0:05:43just enough space to keep your wheelie bins.

0:05:46 > 0:05:48The back door needs to be replaced.

0:05:48 > 0:05:52But I feel curiously drawn to the back garden...

0:05:52 > 0:05:54I wonder why?

0:05:56 > 0:06:00# Come into the garden

0:06:00 > 0:06:06# Its magical tree... #

0:06:06 > 0:06:10It's kind of how I imagine a Tracey Emin garden would look

0:06:10 > 0:06:13at the Chelsea Flower Show!

0:06:13 > 0:06:17You've got car seats, toys, trampolines - all sorts.

0:06:17 > 0:06:21You would absolutely need to get the skips in and clear it out.

0:06:21 > 0:06:24But I love the size and potential of the garden.

0:06:24 > 0:06:26Here, well, you've got a shelter

0:06:26 > 0:06:29that was probably meant to shelter you from the rain.

0:06:29 > 0:06:31These days, it wouldn't offer you much solace.

0:06:31 > 0:06:35But all in all, I love the possibilities of this garden.

0:06:38 > 0:06:41We asked a local property expert along to see who,

0:06:41 > 0:06:45other than student renters, would find this property appealing.

0:06:45 > 0:06:47I think when the property has been totally renovated,

0:06:47 > 0:06:50it will appeal to young first-time buyers.

0:06:50 > 0:06:54That's interesting. So, this could be a first home

0:06:54 > 0:06:56or a good investment for resale.

0:06:56 > 0:06:58What could potential resale be,

0:06:58 > 0:07:02given its current guide of £125,000?

0:07:02 > 0:07:04As far as the sales value's concerned,

0:07:04 > 0:07:07I would recommend an asking price of £185,000.

0:07:07 > 0:07:09And as far as the rental value is concerned,

0:07:09 > 0:07:13I would suggest a figure of £750 per calendar month.

0:07:13 > 0:07:18There's no doubt about it, this terraced house needs plenty of work,

0:07:18 > 0:07:22starting with that roof over the bathroom and kitchen.

0:07:22 > 0:07:24But it's got plenty of possibilities,

0:07:24 > 0:07:27and could make a great investment property -

0:07:27 > 0:07:29once you've done those renovations, of course.

0:07:29 > 0:07:33Let's find out who saw the potential when it went to auction.

0:07:33 > 0:07:36Lot 31 we go to now. Sweet little house again.

0:07:36 > 0:07:39Can we start at 130 on this one, to start me?

0:07:39 > 0:07:41Give me 125, then, start me where you will.

0:07:41 > 0:07:43Anyone who lost the last house might...

0:07:43 > 0:07:46125 I've got, 128 now, do I see?

0:07:46 > 0:07:50128 do I see? 128 on the back wall, 130, Steve?

0:07:50 > 0:07:51130, and two...

0:07:51 > 0:07:55Steve, just out of shot, is one of the auctioneer's colleagues,

0:07:55 > 0:07:57and he's acting as a proxy bidder

0:07:57 > 0:07:59for someone who's not at the auction.

0:07:59 > 0:08:02We rejoin the bidding at £140,000.

0:08:02 > 0:08:04Anybody in the room coming at 142?

0:08:04 > 0:08:07If not, for the first time, 140,000.

0:08:07 > 0:08:09I'm looking for 142.

0:08:09 > 0:08:11Second time at 140,000.

0:08:11 > 0:08:14Third and final time, at £140,000.

0:08:15 > 0:08:18142, gosh, that was a late one.

0:08:18 > 0:08:20At 142,000 I have.

0:08:20 > 0:08:22144 I'm looking for. 144 I've got.

0:08:22 > 0:08:24146 now, if you like.

0:08:24 > 0:08:27146. 146, 148 now.

0:08:27 > 0:08:31At £146,000, sitting down in the middle on the right.

0:08:31 > 0:08:33146,000 for the second time.

0:08:33 > 0:08:35If I don't get 148...

0:08:35 > 0:08:38Third and final time, at £146,000,

0:08:38 > 0:08:41are you sure you're all done at 146...?

0:08:41 > 0:08:44Yours in the green and black top.

0:08:44 > 0:08:46And the number is...

0:08:46 > 0:08:50The successful purchaser, paying £146,000, was Kitty,

0:08:50 > 0:08:54who's just out of view, at the auction with husband Rajesh.

0:08:54 > 0:08:58Kitty is from Hungary, and she met software developer Rajesh,

0:08:58 > 0:09:01who is originally from Bangalore, when they worked together.

0:09:01 > 0:09:04They have a young son called Oliver.

0:09:04 > 0:09:05Apart from their own home,

0:09:05 > 0:09:08this will be their first refurbishment property.

0:09:08 > 0:09:13- Kitty, Rajesh. - Hi.- Hello and congratulations.

0:09:13 > 0:09:14- Thank you very much.- Thank you.

0:09:14 > 0:09:17Did you come to look at the property before, did you see inside?

0:09:17 > 0:09:20Yes, yes, we had one visit, quite short, I think, but...

0:09:20 > 0:09:24And regarding the legal parts, not really, to be honest.

0:09:24 > 0:09:27- Ah.- Because it was just so...

0:09:27 > 0:09:32So, so...so many pages, and I felt like I don't have time for that!

0:09:32 > 0:09:34It is a bit boring, but...

0:09:34 > 0:09:37- there can be some nasty surprises if you don't go through it.- Yes.

0:09:37 > 0:09:40- Did you find any?- Yes. - We had to pay a certain admin fee

0:09:40 > 0:09:44and stuff, which seller has paid, and we had to pay them off.

0:09:44 > 0:09:49So it was in that legal pack, which we didn't really look at properly!

0:09:49 > 0:09:51Oh, dear!

0:09:51 > 0:09:55I think this could be my very first Homes Under The Hammer scolding!

0:09:55 > 0:09:58We all know the drill - read the legal pack!

0:09:58 > 0:10:03Yep, it's boring, but really, it's better to be bored than broke -

0:10:03 > 0:10:04and there's a lot at stake.

0:10:04 > 0:10:08In this case, a further five grand AND additional cost,

0:10:08 > 0:10:11not to mention that they were caught out with new rules

0:10:11 > 0:10:15on second-home stamp duty. But this is all a learning curve.

0:10:15 > 0:10:18Kitty has changed from the software industry

0:10:18 > 0:10:20to work on property full time,

0:10:20 > 0:10:23and she's been inspired by previous experiences.

0:10:23 > 0:10:28We did a valuation of our home, and, er, I managed almost everything,

0:10:28 > 0:10:33with my son. And that's why I know this is something what I can do.

0:10:33 > 0:10:40So, finally, I resigned and just started focusing only on properties.

0:10:40 > 0:10:42Great. It's a brave move.

0:10:42 > 0:10:44And it gives you an incentive to do it quickly, I guess.

0:10:44 > 0:10:47- Yes, yeah.- So that you can be a mum again, full-time...

0:10:47 > 0:10:49- Yeah!- And get another project.

0:10:49 > 0:10:51- Yeah.- Great. And what do you plan to do with it,

0:10:51 > 0:10:54- to rent this property out? - Yeah. Yeah, actually,

0:10:54 > 0:10:58that is the big difference between this renovation and our renovation.

0:10:58 > 0:11:02Because here, we are trying to keep, you know,

0:11:02 > 0:11:05the expenses as low as possible, which is actually a big challenge.

0:11:05 > 0:11:07Well, if it's a business, you have to make money.

0:11:07 > 0:11:09- Yeah!- That's the aim.

0:11:09 > 0:11:11When it comes to saving money, their aim is true,

0:11:11 > 0:11:15as the couple have quickly got an exemption from council tax

0:11:15 > 0:11:20for a whole year because of the uninhabitable state of the property.

0:11:20 > 0:11:22That should help ease their pain

0:11:22 > 0:11:25after paying 24,000 over the guide price.

0:11:27 > 0:11:29So, the guide price was £125,000.

0:11:29 > 0:11:31- Yeah.- You might have gone a little bit over.

0:11:31 > 0:11:33- Yes, yeah. - Does that affect your budget?

0:11:33 > 0:11:35What's your budget for this place?

0:11:35 > 0:11:37Er, we don't know how much we need to spend,

0:11:37 > 0:11:39but I would be very, very happy if it's...

0:11:39 > 0:11:42somehow we manage from 20k.

0:11:42 > 0:11:44So, not more than that.

0:11:44 > 0:11:46I think it can go...30k.

0:11:46 > 0:11:48- You think it might go up to 30? - Yeah.

0:11:48 > 0:11:52And what do you think the main parts of the budget will go on, Rajesh?

0:11:52 > 0:11:56Er, we have to do a whole new kitchen, including the ceilings,

0:11:56 > 0:12:00a lot of damp, damp has to be corrected, the flooring, plastering,

0:12:00 > 0:12:04new plastering, we are putting new plumbing, new rewiring,

0:12:04 > 0:12:08so we can have proper certificates and everything done.

0:12:08 > 0:12:10That roof's a real problem, isn't it?

0:12:10 > 0:12:13The flat roof? It's damp and it's rotten through.

0:12:13 > 0:12:15- Yes.- Have you looked into

0:12:15 > 0:12:18how much work and money that will cost to fix it?

0:12:18 > 0:12:20We don't know how much money it will cost,

0:12:20 > 0:12:22but we know it's going to cost. We didn't realise

0:12:22 > 0:12:25that there is asbestos as well, so we need to sort that out.

0:12:25 > 0:12:26I have spoken to the builders,

0:12:26 > 0:12:29and we need to arrange clearing this house,

0:12:29 > 0:12:34so there is special companies who comes and clears this out.

0:12:34 > 0:12:36Kitty will project-manage

0:12:36 > 0:12:39and purchase all fittings, fixtures, flooring and so on,

0:12:39 > 0:12:43but they will employ contractors for the works.

0:12:43 > 0:12:45Rajesh, tell me a little bit more about what you do.

0:12:45 > 0:12:49Er, I work as a software developer in finance, in one...

0:12:49 > 0:12:51That's good, finance -

0:12:51 > 0:12:53you'll be able to keep the purse strings in order!

0:12:53 > 0:12:56- Yeah, I can... - Is that how it works?

0:12:56 > 0:12:57Er, not really.

0:12:57 > 0:13:00She's doing everything, I just sometimes just take a look,

0:13:00 > 0:13:04what is she doing, if she needs some help, which I can help in weekends.

0:13:04 > 0:13:08But other than that, she is managing everything, start to end.

0:13:08 > 0:13:09Both our money is invested,

0:13:09 > 0:13:12so I sometimes do keep an eye to see where we are going,

0:13:12 > 0:13:14what is she taking decisions, that's all.

0:13:14 > 0:13:16What's your timescale?

0:13:16 > 0:13:20- So, we want to finish everything in two months. Yep.- Two months?

0:13:20 > 0:13:24- Yep.- Are you confident you can do it?- Erm...- Fairly confident.

0:13:24 > 0:13:26Yeah. Yeah. I think yes.

0:13:26 > 0:13:29And having given up your job, this is your full-time job.

0:13:29 > 0:13:32- Yes, exactly. - You can put everything into it.

0:13:32 > 0:13:35I can't wait to see what you do with the place. Congratulations again.

0:13:35 > 0:13:39- Thank you very much.- Thanks, Rajesh. Thanks, Kitty.- Thank you very much.

0:13:39 > 0:13:41These are really exciting times for Kitty

0:13:41 > 0:13:44and her new property development business,

0:13:44 > 0:13:47and it's great she's got the support of husband Rajesh.

0:13:47 > 0:13:50But there's an awful lot to be done in that two-month period

0:13:50 > 0:13:52they plan to turn the property around.

0:13:52 > 0:13:55And who will be right when it comes to budget?

0:13:55 > 0:13:58Will it be 20? Will it be 30? You can find out later in the show.

0:14:04 > 0:14:07Chingford, historically a rural Essex parish,

0:14:07 > 0:14:10is now a busy district in the London borough of Waltham Forest,

0:14:10 > 0:14:14and a train could have you in London Liverpool Street

0:14:14 > 0:14:16in under 30 minutes.

0:14:16 > 0:14:19Well, ten minutes' walk from Chingford train station

0:14:19 > 0:14:23is the property I'm here to see. So, commuting-wise, that's great news.

0:14:23 > 0:14:28The property itself, three-bed semi, guide price £325,000.

0:14:28 > 0:14:31Well, it's pebble-dash city on the outside - let's take a look inside!

0:14:35 > 0:14:37So, what have we got?

0:14:37 > 0:14:39Through the front door,

0:14:39 > 0:14:41shower room and toilet, that's quite useful,

0:14:41 > 0:14:46into a sort of little area here with the stairs up to your bedrooms.

0:14:46 > 0:14:47The front living room area there

0:14:47 > 0:14:49currently being used as a little bedroom,

0:14:49 > 0:14:53which does throw up the whole possibility of using this

0:14:53 > 0:14:57as some kind of house of shared occupation, or HMO.

0:14:57 > 0:14:59Another bedroom kind of thing there, bit of a mess.

0:14:59 > 0:15:02The first thing to know is, actually, it's full of stuff,

0:15:02 > 0:15:04so we'll try and see through that.

0:15:04 > 0:15:07Through here into the kitchen at the back of the property,

0:15:07 > 0:15:09currently being used as a bit of a lounge as well.

0:15:09 > 0:15:14You know, it needs... Well, a bit of investigation.

0:15:14 > 0:15:15If you come into a house like this,

0:15:15 > 0:15:18the first thing you want to know is, is there somebody living here?

0:15:18 > 0:15:19It looks like there is.

0:15:19 > 0:15:23So your solicitor definitely needs to check out the legal pack

0:15:23 > 0:15:26to check you've got what's known as vacant possession,

0:15:26 > 0:15:29because if you haven't, that throws up a whole load of issues.

0:15:29 > 0:15:32# Well, there ain't no room

0:15:32 > 0:15:35# Well, it makes no sense

0:15:35 > 0:15:38# Hey, there ain't no room

0:15:38 > 0:15:40# God, it makes you tense... #

0:15:42 > 0:15:45Now, broadly speaking, vacant possession means that

0:15:45 > 0:15:48the property should be free of chattels -

0:15:48 > 0:15:51that's stuff, to you and me - and free of people as well.

0:15:51 > 0:15:55It could be tenancy with contractual rights,

0:15:55 > 0:15:57so you really need to go through the legal pack

0:15:57 > 0:15:59before bidding at the auction.

0:16:01 > 0:16:06So, upstairs, can't get into that room so we'll move swiftly on.

0:16:06 > 0:16:08Two bedrooms, a smallish one towards the back,

0:16:08 > 0:16:11in fact both of these towards the back.

0:16:11 > 0:16:16Bathroom, half-decent size, obviously needs a bit of tidying up.

0:16:16 > 0:16:18That sort of sums up the whole house, really.

0:16:18 > 0:16:21It's got loads of potential, it just needs that...

0:16:22 > 0:16:24..bit of work.

0:16:24 > 0:16:26But potentially, could be brilliant.

0:16:28 > 0:16:30Sometimes you have to look beyond the clutter

0:16:30 > 0:16:32to see the true value of the property,

0:16:32 > 0:16:34and sometimes you just have to pop outside.

0:16:38 > 0:16:41Now, the catalogue does say a few magic words,

0:16:41 > 0:16:45and those are "potential for an extension".

0:16:45 > 0:16:48And, yes, I can absolutely see that,

0:16:48 > 0:16:52both at the side and the back of the property.

0:16:52 > 0:16:56Now, that would massively increase the value of this house.

0:16:56 > 0:16:58That's the good news. The bad news is, looking around,

0:16:58 > 0:17:02I don't see any of the neighbours doing an extension, which means

0:17:02 > 0:17:05there might not have been a planning permission precedent set

0:17:05 > 0:17:09as yet, but if you could get it, make this a really big house,

0:17:09 > 0:17:15or even flats, well, then we're talking serious numbers.

0:17:16 > 0:17:19# So if there's something you'd like to try

0:17:19 > 0:17:22# If there's something you'd like to try

0:17:22 > 0:17:27# Ask me, I won't say no How could I? #

0:17:30 > 0:17:32OK, so it's not as easy as just asking,

0:17:32 > 0:17:34but if you do get planning permission,

0:17:34 > 0:17:37this could potentially be a very good investment.

0:17:37 > 0:17:41We asked along a local estate agent for his opinion on this property,

0:17:41 > 0:17:44guided at £335,000.

0:17:44 > 0:17:47The property's of good size. I would change the layout

0:17:47 > 0:17:50in terms of where the kitchen's located.

0:17:50 > 0:17:52Another benefit to the property is

0:17:52 > 0:17:54that it's got a downstairs toilet/ shower room,

0:17:54 > 0:17:58a very good-sized garden which, possibly with planning permission,

0:17:58 > 0:18:00you could probably extend out to the rear as well

0:18:00 > 0:18:02to increase the size of the property.

0:18:02 > 0:18:05To change the layout of the property and bring it up to a modern spec,

0:18:05 > 0:18:09I would estimate a cost of around £15,000 to £20,000.

0:18:09 > 0:18:12To put an extension onto the rear of the property and bring it up to

0:18:12 > 0:18:16a modern spec, I would estimate a cost of around £40,000.

0:18:16 > 0:18:20For the property with a hefty guide price of 335,000,

0:18:20 > 0:18:24you'd need to decide if further expenditure on the extensions

0:18:24 > 0:18:26would suit your needs and be cost-effective.

0:18:26 > 0:18:29So what kind of rental does the agent think this property

0:18:29 > 0:18:34could command once renovation is done here, without the extensions?

0:18:34 > 0:18:37Once renovated, I believe this property could achieve

0:18:37 > 0:18:40£1,500 per calendar month on the rental market.

0:18:40 > 0:18:43OK, so what about the resale value of the property,

0:18:43 > 0:18:45with an improved internal layout?

0:18:46 > 0:18:48Once renovated and brought up to a modern spec,

0:18:48 > 0:18:50I believe this property could achieve

0:18:50 > 0:18:54anywhere between £400,000 to £425,000.

0:18:54 > 0:18:58Well, it's a good location and there is potential to extend,

0:18:58 > 0:19:00two very big boxes ticked.

0:19:00 > 0:19:03It all comes down to the price that was paid at the auction.

0:19:03 > 0:19:06Let's find out what that was when it went under the hammer.

0:19:10 > 0:19:13Three-bed semidetached house,

0:19:13 > 0:19:16you've got some garden off-street parking.

0:19:16 > 0:19:19I don't know, 280, go upwards from there?

0:19:19 > 0:19:21Seems low for Chingford.

0:19:21 > 0:19:24Sitting down 280, 285 standing up,

0:19:24 > 0:19:26285, 290,

0:19:26 > 0:19:29295, 300,

0:19:29 > 0:19:31305, 310.

0:19:31 > 0:19:34315.

0:19:34 > 0:19:38The bids steadily rose, and we rejoin at 320,000.

0:19:38 > 0:19:42321, 320...

0:19:42 > 0:19:45325. 326.

0:19:45 > 0:19:50327, 328, 329...

0:19:50 > 0:19:54330. 331.

0:19:55 > 0:19:57Have a think. 330 with you.

0:19:57 > 0:19:59331 elsewhere?

0:19:59 > 0:20:04If not, 330 down here, first time...

0:20:04 > 0:20:05second time...

0:20:05 > 0:20:07Third and last time, if you're all done?

0:20:09 > 0:20:10Sold, 330.

0:20:10 > 0:20:13So, for £5,000 over the guide price,

0:20:13 > 0:20:18it was bought for £330,000 by Phil.

0:20:18 > 0:20:20However, it's not Phil who is here today,

0:20:20 > 0:20:23it's his friend and employee Clive,

0:20:23 > 0:20:26who will be filling me in on the plans.

0:20:26 > 0:20:28Clive, nice to meet you.

0:20:28 > 0:20:32- And you.- Congratulations. Tell me the story behind this house.

0:20:32 > 0:20:36Well, we look at properties because we develop properties,

0:20:36 > 0:20:38we look in the auctions.

0:20:38 > 0:20:40So you say "we", what's we?

0:20:40 > 0:20:44I work for a company and we've done four of these properties before,

0:20:44 > 0:20:47so this was a natural progression.

0:20:47 > 0:20:49We do grounds maintenance and landscaping as well

0:20:49 > 0:20:52for local authorities, housing associations,

0:20:52 > 0:20:55so we work from that, and also building and technical services

0:20:55 > 0:20:56in the local authority,

0:20:56 > 0:20:59we have contracts with them for building works, etc.

0:20:59 > 0:21:03Right, so in terms of these kind of new projects you're involved in,

0:21:03 > 0:21:08- what's your role?- Really to look after the site once it gets going.

0:21:08 > 0:21:11- Right.- I also do all the ordering of materials, get everything together,

0:21:11 > 0:21:13so basically project managing.

0:21:13 > 0:21:16What was it about this house that particularly appealed?

0:21:16 > 0:21:18Probably where it was, being in north Chingford,

0:21:18 > 0:21:21it's an up-and-coming area, and the size of it,

0:21:21 > 0:21:23and the potential that we saw there.

0:21:23 > 0:21:25Obviously there's someone living here.

0:21:25 > 0:21:27- Yes, there is. - What do you know about that?

0:21:27 > 0:21:32The lady that owned it previously was renting this out as bedsits.

0:21:32 > 0:21:34Obviously when we took this over,

0:21:34 > 0:21:37knowing that we were going to be putting in a planning application

0:21:37 > 0:21:41for works in the future, we decided to keep the rooms going.

0:21:41 > 0:21:44There was a lady staying here originally

0:21:44 > 0:21:46who really didn't have anywhere else to go,

0:21:46 > 0:21:50so we said to her that she could stay on a short-term tenancy...

0:21:50 > 0:21:53- Right.- ..and we then also put some of our guys in here.

0:21:53 > 0:21:57- Right.- Basically using it while it's not doing anything.

0:21:57 > 0:21:59And what's the planning you're applying for?

0:21:59 > 0:22:03We're applying to get a rear and side extension,

0:22:03 > 0:22:07- and turn this into four flats. - Oh, wow, four flats?

0:22:07 > 0:22:08Four flats, one-bedroom flats.

0:22:08 > 0:22:10Have you spoken to the planners at all?

0:22:10 > 0:22:14We haven't as of yet, we're just getting drawings sorted out, etc,

0:22:14 > 0:22:16then we're going to have a chat with the planners,

0:22:16 > 0:22:17see where we go with that.

0:22:17 > 0:22:21# What's the big idea?

0:22:21 > 0:22:25# I would like to know... #

0:22:25 > 0:22:27Big changes afoot, then,

0:22:27 > 0:22:30but there's no guarantee that planning will go through.

0:22:30 > 0:22:32As well as sorting through the red tape,

0:22:32 > 0:22:35a little sweet-talking may be necessary.

0:22:35 > 0:22:38Planning permission will definitely

0:22:38 > 0:22:40require the support of the neighbours and things,

0:22:40 > 0:22:43how are you going to appease them?

0:22:43 > 0:22:45We certainly need to talk to the neighbours,

0:22:45 > 0:22:48as soon as we've had our plans drawn up we'll make arrangements to speak

0:22:48 > 0:22:50to the neighbours, just to let them know where we want to go with

0:22:50 > 0:22:54the property, see if they have any issues. If they have issues,

0:22:54 > 0:22:56then maybe we can sort the issues out before we go anywhere.

0:22:56 > 0:22:59Talk me through, roughly, the plans, then,

0:22:59 > 0:23:02how it would work to get four flats into this property?

0:23:02 > 0:23:06Plans are going to be, with the rear extension, side extension,

0:23:06 > 0:23:08we're using basically where the front door is

0:23:08 > 0:23:10as the main entrance into it,

0:23:10 > 0:23:12then it will be split into flats -

0:23:12 > 0:23:15two on the ground floor and two upstairs.

0:23:15 > 0:23:18Right, and will the plan then be to do them,

0:23:18 > 0:23:20build them and sell them, or rent them?

0:23:20 > 0:23:23We'd look to probably sell three and keep one.

0:23:23 > 0:23:25- OK.- That would be the plan.

0:23:25 > 0:23:28And what do one-bedroom flats around here go for?

0:23:28 > 0:23:32Between 170 and 210, that sort of area.

0:23:32 > 0:23:35OK, and the build cost is going to be?

0:23:35 > 0:23:39We reckon it's going to be about 100 to 110.

0:23:39 > 0:23:47£110,000 added to the purchase price of 330,000, that's £440,000.

0:23:47 > 0:23:51And if they sold all four flats at 170,000,

0:23:51 > 0:23:56that would mean a potential pre-tax profit of £240,000.

0:23:57 > 0:24:00So what's the timescale for what you're going to do?

0:24:00 > 0:24:03- I would say four to five months. - Right.- From start to finish.

0:24:03 > 0:24:06And then next is another project like this, perhaps?

0:24:06 > 0:24:08- Oh, yes. Yeah, yeah, definitely. - That's on the cards.

0:24:08 > 0:24:10Who finds them at the auction?

0:24:10 > 0:24:15Well, Phil is my boss, he's always on the auction sites,

0:24:15 > 0:24:17and we do sit in the office sometimes

0:24:17 > 0:24:20for hours on end just scanning the auction sites!

0:24:20 > 0:24:21MARTIN CHUCKLES

0:24:21 > 0:24:24Great, well, congratulations, and good luck with it.

0:24:24 > 0:24:26- Thank you.- I look forward to seeing how you get on.

0:24:27 > 0:24:30Well, there's clearly money to be made on this one,

0:24:30 > 0:24:33but it does require the approval of the planners and the support

0:24:33 > 0:24:36of the neighbours. How will Clive and his boss get on

0:24:36 > 0:24:39sorting this place out? You can find out later in the show.

0:24:41 > 0:24:45Coming up in Wolverhampton - no-one is safe from Ray's plans.

0:24:45 > 0:24:47That's everybody working their socks off, I'm afraid.

0:24:47 > 0:24:49Anyone I can drag in here, yeah!

0:24:49 > 0:24:52- Good man, rope everybody in. - Exactly.

0:24:52 > 0:24:55And in Chingford, London, Clive has learnt some lessons

0:24:55 > 0:24:57he'll take into his next project.

0:24:57 > 0:25:00Nothing with major planning permission at the moment.

0:25:05 > 0:25:08Now we're back to Gillingham, one of the Medway towns in Kent,

0:25:08 > 0:25:12where earlier I looked around this two-bedroom terrace.

0:25:12 > 0:25:15It was bought for £146,000 by Kitty,

0:25:15 > 0:25:17as her first development project.

0:25:17 > 0:25:21Hungarian Kitty met Rajesh, who was from Bangalore,

0:25:21 > 0:25:24when they worked together in the software industry.

0:25:24 > 0:25:26She was on her own this time,

0:25:26 > 0:25:28as Rajesh planned to act as an adviser.

0:25:28 > 0:25:32Kitty certainly had her work cut out, and not just on the inside.

0:25:34 > 0:25:36Here, well, you've got a shelter that was probably

0:25:36 > 0:25:38meant to shelter you from the rain.

0:25:38 > 0:25:41These days, it wouldn't offer you much solace.

0:25:41 > 0:25:45But by far the worst feature was just behind the plastic canopy,

0:25:45 > 0:25:48in the form of a flat roof over the bathroom and kitchen.

0:25:49 > 0:25:53Have you looked into how much work and money that will cost to fix it?

0:25:53 > 0:25:55We don't know how much money it will cost,

0:25:55 > 0:25:56but we know it's going to cost.

0:25:56 > 0:25:59We didn't realise it had asbestos as well.

0:25:59 > 0:26:01So we need to sort that out.

0:26:01 > 0:26:04Asbestos removal can be a slow job,

0:26:04 > 0:26:05but Kitty was confident she could

0:26:05 > 0:26:09turn the property around in two months.

0:26:09 > 0:26:12We're back just over two months later for a Hungarian dance

0:26:12 > 0:26:14in Kitty's new rooms.

0:26:26 > 0:26:29The kitchen now has a contemporary feel, with lots of light.

0:26:30 > 0:26:33What was a back door is now a unique floor-to-ceiling window.

0:26:36 > 0:26:39Back in the front room, there's been a key change -

0:26:39 > 0:26:42this is now a bedroom that has been created

0:26:42 > 0:26:44by adding a partition corridor.

0:26:44 > 0:26:47But instead of me going on about new floorings,

0:26:47 > 0:26:48electrics and planning,

0:26:48 > 0:26:52why don't we have a listen to a bit of beautiful Brahms, darling?

0:26:52 > 0:26:55CLASSICAL MUSIC

0:26:55 > 0:26:58Brahms was a German composer,

0:26:58 > 0:27:01but this is Hungarian Dance No. 5.

0:27:01 > 0:27:03Don't say we're not cultured on Hammer!

0:27:03 > 0:27:06There's also been a further progression in the garden.

0:27:06 > 0:27:08Although not exactly manicured,

0:27:08 > 0:27:11it's certainly better for having a tidy

0:27:11 > 0:27:13and a few skip-lots of stuff removed.

0:27:13 > 0:27:17And that flat roof, well, that's also been sorted.

0:27:17 > 0:27:20And just in case you're wondering where the back door's gone...

0:27:20 > 0:27:21Here it is!

0:27:23 > 0:27:26We didn't think the original bathroom was peachy,

0:27:26 > 0:27:29but now it is - in a good way!

0:27:29 > 0:27:32Downstairs is done. Let's head for the top floor.

0:27:43 > 0:27:47The whole place looks smart, contemporary and easily maintained.

0:27:47 > 0:27:50Has Kitty WALTZED through this renovation?

0:27:53 > 0:27:55Actually, after we bought it,

0:27:55 > 0:27:58I asked the auction to show us again,

0:27:58 > 0:27:59just to do some measurements.

0:27:59 > 0:28:03And I was a bit shocked - "Oh, my God, what did we buy?"

0:28:03 > 0:28:06Because it was just so disgusting, the whole thing.

0:28:06 > 0:28:09And extremely dark everywhere.

0:28:09 > 0:28:16So the work was actually more than we were hoping for.

0:28:16 > 0:28:18Yeah.

0:28:18 > 0:28:22Upon lifting the carpets, they found very poor flooring underneath.

0:28:22 > 0:28:27They chose to replace it with oriented strand board, or OSB.

0:28:27 > 0:28:29We had to put OSB everywhere.

0:28:29 > 0:28:31The whole house, before you put the laminate.

0:28:31 > 0:28:34So now it's become very stable, nothing moves.

0:28:34 > 0:28:36It's very stable and firm.

0:28:36 > 0:28:39Yeah, it was kind of moving, not flat.

0:28:39 > 0:28:44It's more than 12mm OSB, which makes it very stable.

0:28:44 > 0:28:48But stability wasn't the watchword when it came to their choice

0:28:48 > 0:28:52- of contractors. - We hire the guys individually,

0:28:52 > 0:28:56and it was actually extremely difficult to manage them.

0:28:56 > 0:29:01It was very, very stressful. Much more stressful than I expected.

0:29:01 > 0:29:04Unfortunately, their chosen plumber was taken ill,

0:29:04 > 0:29:05which meant some additional delay.

0:29:07 > 0:29:09We had to look...

0:29:09 > 0:29:13for a new plumber, who can start immediately.

0:29:13 > 0:29:16Which was extremely stressful.

0:29:16 > 0:29:20I was just calling these guys from morning until evening,

0:29:20 > 0:29:25and maybe 20 or 30 guys came here to take a look.

0:29:25 > 0:29:27And...yeah.

0:29:27 > 0:29:30Having removed the woodchip and, in some cases,

0:29:30 > 0:29:33the plaster underneath it, they decided not to replaster,

0:29:33 > 0:29:36and Kitty came up with an alternative design solution.

0:29:40 > 0:29:43During the entire renovation, we didn't have heating at all.

0:29:43 > 0:29:46And for the plastering, you need heating,

0:29:46 > 0:29:51and it was cold, and we didn't want to lose time,

0:29:51 > 0:29:54because it just takes forever for the plastering to get dry.

0:29:54 > 0:29:57That's why we decided just not to plaster,

0:29:57 > 0:29:59just to paint the bricks.

0:29:59 > 0:30:03As well as being cheaper than replastering,

0:30:03 > 0:30:05I think the painted bricks add character.

0:30:05 > 0:30:07Kitty saved further money by

0:30:07 > 0:30:09sourcing some second-hand fixtures and fittings

0:30:09 > 0:30:11from an online auction site.

0:30:13 > 0:30:15She did all the designing and everything.

0:30:15 > 0:30:17She figured out which stuff to put in,

0:30:17 > 0:30:20from where to get it and everything.

0:30:20 > 0:30:24It was a lot of work, and she did it well. So well done.

0:30:24 > 0:30:28The refurbishment budget was set up between £20,000 and £30,000.

0:30:28 > 0:30:32So how did Kitty fare with her, eh, kitty?

0:30:32 > 0:30:36We spent around £24,000.

0:30:36 > 0:30:40- At the end.- And what's Rajesh's take on the results?

0:30:40 > 0:30:44I don't think I would have done so much creative way of designing.

0:30:44 > 0:30:47I think I'm probably not good at that.

0:30:47 > 0:30:49So she executed it well.

0:30:49 > 0:30:51By creating a third bedroom downstairs

0:30:51 > 0:30:53and a large, open-plan living area,

0:30:53 > 0:30:58they've maximised the potential if they rented this property out.

0:30:58 > 0:31:02So, what did two local estate agents make of the changes?

0:31:02 > 0:31:05First, the agent who saw it previously.

0:31:05 > 0:31:08It's much brighter, lighter, and it's habitable now.

0:31:08 > 0:31:12When I was first here, it was a real mess.

0:31:12 > 0:31:14I think the standard of finish is very good.

0:31:14 > 0:31:16It's all white and grey, that's very modern at the moment.

0:31:16 > 0:31:19Buyers and potential tenants are very interested

0:31:19 > 0:31:20in those type of properties.

0:31:20 > 0:31:23OK, the estate agents seem impressed.

0:31:23 > 0:31:26So what rental valuation would they suggest?

0:31:26 > 0:31:30I believe it can achieve between £825 per calendar month

0:31:30 > 0:31:31and £850 per calendar month.

0:31:31 > 0:31:34I think the rental value for this property is

0:31:34 > 0:31:36approximately £900 per calendar month.

0:31:37 > 0:31:42In total, they've spent £170,000, excluding fees and expenses,

0:31:42 > 0:31:47so the average rental forecast equates to just over a 6% yield.

0:31:48 > 0:31:51But Kitty has another option she's looking at.

0:31:52 > 0:31:54We are planning to rent it out per room.

0:31:54 > 0:31:59That's why, actually, we are hoping to get more than that.

0:32:01 > 0:32:04Kitty's currently negotiating renting each room out separately,

0:32:04 > 0:32:08and is hoping for a total of £1,000 per month.

0:32:08 > 0:32:12But she will cover utility bills, broadband and common area cleaning,

0:32:12 > 0:32:16costing roughly £100 to £350 per month.

0:32:16 > 0:32:20As always, you need to comply with council regulations on house shares,

0:32:20 > 0:32:22or HMOs, if that's your plan.

0:32:22 > 0:32:26Kitty has installed fire and smoke alarms as required.

0:32:26 > 0:32:29So, will they be moving onto their next development?

0:32:29 > 0:32:32We have different feelings about this.

0:32:32 > 0:32:35Well, I for one hope that they do.

0:32:35 > 0:32:38And who knows, we might see them at the auction room again.

0:32:44 > 0:32:47In 1927, the UK's first automatic traffic lights

0:32:47 > 0:32:49were installed in Wolverhampton.

0:32:51 > 0:32:54Nowadays, there is easy access to several motorways,

0:32:54 > 0:32:57and it's where glam rockers Slade came from.

0:32:57 > 0:33:00MUSIC: Take Me Back 'Ome by Slade

0:33:02 > 0:33:04It's the hottest day of the year,

0:33:04 > 0:33:06and the city centre is only two miles away.

0:33:06 > 0:33:08Which, normally, I would walk no problem.

0:33:08 > 0:33:11But on a day like today, I think I'll give it a miss.

0:33:11 > 0:33:14But this place is in a great location.

0:33:14 > 0:33:18It's got three bedrooms, it's a semidetached house

0:33:18 > 0:33:20and has a guide price of £75,000.

0:33:20 > 0:33:22Let's get in and see what you get for your money.

0:33:28 > 0:33:30DOOR CREAKS LOUDLY

0:33:30 > 0:33:33Spooky. Now, I'm guessing - just guessing -

0:33:33 > 0:33:35these hinges might need a little bit of oil on.

0:33:35 > 0:33:38But look what I've spotted as soon as I came through the door.

0:33:38 > 0:33:40There is a stairlift.

0:33:40 > 0:33:42They must have known I was coming.

0:33:42 > 0:33:47This is the XPF1 model - ex-professional footballers' model -

0:33:47 > 0:33:49we've all got them. We need them for our dodgy knees,

0:33:49 > 0:33:52but I have upgraded to the XPF2.

0:33:52 > 0:33:55Want to keep up with the Joneses - get the same as me.

0:33:55 > 0:33:57Right, into the first reception room,

0:33:57 > 0:33:59which isn't a bad size at all.

0:33:59 > 0:34:02It does look a little bit dated, the carpets need changing.

0:34:02 > 0:34:05The fireplace, gas fireplace, you'd want to get rid of that.

0:34:05 > 0:34:08So, yes, get the wallpaper off in there.

0:34:08 > 0:34:12Into the second reception room. Now...this is a little bit strange.

0:34:12 > 0:34:15You've got your kitchen cupboard over here,

0:34:15 > 0:34:18you've got a freestanding cooker over there and sink.

0:34:18 > 0:34:20Very old-fashioned layout.

0:34:20 > 0:34:23Now, there's got to be a way of using this space better.

0:34:23 > 0:34:28I, personally, would make a big kitchen/diner in here.

0:34:28 > 0:34:32And it's got a downstairs toilet as well, which is always a bonus.

0:34:32 > 0:34:35And I can see that the electrics are very old sockets as well.

0:34:35 > 0:34:38I can't see any central heating either.

0:34:38 > 0:34:40Structurally, it feels OK.

0:34:40 > 0:34:43But it's very, very old-fashioned.

0:34:46 > 0:34:49And one look at the three bedrooms proves my point, I think.

0:34:51 > 0:34:56# I'm just an old-fashioned girl with an old-fashioned mind

0:34:56 > 0:35:00# Not sophisticated, I'm the plain and simple kind

0:35:00 > 0:35:04# I want an old-fashioned house with an old-fashioned fence

0:35:04 > 0:35:08# And an old-fashioned millionaire... #

0:35:09 > 0:35:11Old-fashioned fences and walls

0:35:11 > 0:35:14may have been the grand way to do it back in the day,

0:35:14 > 0:35:18but I think modern needs are a must these days.

0:35:18 > 0:35:23Almost every other house on this street has got off-street parking.

0:35:23 > 0:35:26But, unfortunately... ours doesn't.

0:35:26 > 0:35:30Now, it might seem an easy job - you knock down the wall,

0:35:30 > 0:35:32you chip away at the kerb and you're sorted.

0:35:32 > 0:35:35Not that simple - there's a process that you've got to go through.

0:35:35 > 0:35:37You've got to get in touch with your local council,

0:35:37 > 0:35:40then they'll put you in touch with some approved contractors

0:35:40 > 0:35:42that can drop the kerb for you.

0:35:42 > 0:35:45They'll come out, they'll do that - sorted.

0:35:45 > 0:35:49It will cost you around about £500.

0:35:49 > 0:35:51Providing there aren't any complications,

0:35:51 > 0:35:54like lampposts and telephone poles in the way,

0:35:54 > 0:35:56and there is no cable TV under the pavement.

0:35:58 > 0:36:02Some councils restrict the type of hardstanding driveway material.

0:36:03 > 0:36:04In areas that flood,

0:36:04 > 0:36:07you might need to use impermeable membrane rather than tarmac.

0:36:07 > 0:36:09Just check with your council.

0:36:15 > 0:36:18I wanted to come out the back garden to see how big it was.

0:36:18 > 0:36:21It goes back a long way, it is a bit overgrown,

0:36:21 > 0:36:23but that could get sorted no problem.

0:36:23 > 0:36:26What I'm thinking is, could you add a bit of inside space?

0:36:26 > 0:36:30Now, you can come out, with permitted development, three metres.

0:36:30 > 0:36:33I think that would be more than enough to create a bit more space.

0:36:33 > 0:36:35You'd have lots of garden left,

0:36:35 > 0:36:38and it would be something that I would definitely consider

0:36:38 > 0:36:41if I was on this project.

0:36:41 > 0:36:43We called in a local estate agent

0:36:43 > 0:36:45to see what his considerations are about this property

0:36:45 > 0:36:48and its potential values.

0:36:48 > 0:36:51What work is necessary here and what would it cost?

0:36:52 > 0:36:55You're looking at dropping the kerb, doing the driveway,

0:36:55 > 0:36:57which you're going to be looking around £2,500,

0:36:57 > 0:36:59I would have thought, for that.

0:36:59 > 0:37:01You've got the windows, internally, that need doing.

0:37:01 > 0:37:04New kitchen, new bathroom. Garden needs attention at the back.

0:37:04 > 0:37:08So, all in all, there's probably £20,000 worth of work,

0:37:08 > 0:37:09I would have thought.

0:37:09 > 0:37:12If it went for the £65,000 guide price,

0:37:12 > 0:37:16a token investment then of 85 grand. What would it be worth?

0:37:18 > 0:37:22I'd put the property on the market at an asking price of £125,000.

0:37:22 > 0:37:24Room for profit, then.

0:37:24 > 0:37:28However, the agent doesn't feel an extension would warrant the cost

0:37:28 > 0:37:31of building it. He would prefer a conservatory

0:37:31 > 0:37:33costing around £10,000. So what value would that add?

0:37:36 > 0:37:39I would put the property on the market at £139,000.

0:37:39 > 0:37:41There's a fair bit of work to be done -

0:37:41 > 0:37:43kitchens, bathrooms, plumbing, electrics.

0:37:43 > 0:37:46All that would have to be stripped back and you'd have to

0:37:46 > 0:37:50start again. That said, I do think it's a good project to take on.

0:37:50 > 0:37:52Let's see who thought the same when it went under the hammer.

0:37:52 > 0:37:56Lot 29. Start me at 70, somebody?

0:37:56 > 0:37:58£60,000?

0:37:58 > 0:38:01Or 50 then, I don't mind.

0:38:01 > 0:38:0350, where are we? Thank you.

0:38:03 > 0:38:04Right in the middle, at £50,000.

0:38:04 > 0:38:06Do I hear 60 now?

0:38:06 > 0:38:08Thank you, sir. 573 at 60.

0:38:08 > 0:38:1162,500, sir? 62,500.

0:38:11 > 0:38:14Fresh bidder. 65. 7,500, sir?

0:38:14 > 0:38:1670, sir.

0:38:16 > 0:38:18Having finally passed the guide price, the bidding continues,

0:38:18 > 0:38:22where we rejoin, pausing at 86 grand.

0:38:23 > 0:38:27Are you all done? £86,000...

0:38:27 > 0:38:31You're out at the front, sir? One, two, three, the bid is £86,000.

0:38:31 > 0:38:34To 106, are you all done?

0:38:34 > 0:38:36Another one, sir? 87.

0:38:36 > 0:38:38You're almost there, sir. 88.

0:38:38 > 0:38:4089? 89. 90, sir.

0:38:40 > 0:38:42We should have started here. At 90, sir?

0:38:42 > 0:38:4590,000 I'm bid. 91.

0:38:45 > 0:38:47Are you sure, sir? This time I shall be quicker.

0:38:47 > 0:38:50£90,000... One, two, three.

0:38:50 > 0:38:53I'll come back to you for the future.

0:38:53 > 0:38:57106, for 90,000, sir, thank you.

0:38:57 > 0:39:03Paying 25 grand over the guide price with his £90,000 bid was Ray.

0:39:03 > 0:39:06He has taken to property developing with his daughter, Robyn,

0:39:06 > 0:39:08since they both lost their jobs

0:39:08 > 0:39:11when Ray's road sign company folded in the recession.

0:39:11 > 0:39:13While I chatted to Ray,

0:39:13 > 0:39:16Robyn and daughter Millie enjoyed the sunshine.

0:39:17 > 0:39:21- Ray, nice to meet you.- Nice to meet you.- Congratulations.- Many thanks.

0:39:21 > 0:39:23So, why this house then, in particular?

0:39:23 > 0:39:25Right, OK. We looked at a number of houses,

0:39:25 > 0:39:29and we felt this was the best one to generate some added value.

0:39:29 > 0:39:33And also, it was the one that potentially had not as much work

0:39:33 > 0:39:37to be done to it as others that we saw.

0:39:37 > 0:39:40- And who gets involved in that? Do you get involved?- Right, yeah!

0:39:40 > 0:39:42It all starts with you, doesn't it?

0:39:42 > 0:39:45It all starts... I do the majority of the work,

0:39:45 > 0:39:48the humping work. My nephew's an electrician,

0:39:48 > 0:39:50lives fairly locally to here.

0:39:50 > 0:39:53- Perfect.- But in the main, I, together with Robyn,

0:39:53 > 0:39:55will do the majority of the work.

0:39:55 > 0:39:57We have a group of people that we've used before,

0:39:57 > 0:39:59that we're constantly adding to.

0:39:59 > 0:40:03And we're looking to sort of do further and further houses.

0:40:03 > 0:40:08I think we need to spend about 12,000 to bring it up to scratch.

0:40:08 > 0:40:13- OK.- And I'm looking for about 140, around that number.

0:40:13 > 0:40:17But we may rent it if it doesn't all pan out.

0:40:17 > 0:40:18It's all about capital.

0:40:18 > 0:40:20- Yes, yes.- Capital to purchase the houses at auction,

0:40:20 > 0:40:23because you need the capital there,

0:40:23 > 0:40:25although I am selling another house as well,

0:40:25 > 0:40:28my own house, to generate further capital,

0:40:28 > 0:40:30to generate further projects like this.

0:40:30 > 0:40:32- In order to keep moving forward. - Yeah.

0:40:32 > 0:40:35The long-term plan is to build up a portfolio of ten,

0:40:35 > 0:40:39a dozen houses, to act as a bit of a pension...

0:40:39 > 0:40:40A further pension for me,

0:40:40 > 0:40:43and something for the future for Robyn and the family.

0:40:43 > 0:40:47- And the grandkids, yeah.- Mm-hm. - Nice little touch, I like that.

0:40:47 > 0:40:49You've got a 12 grand budget, how long will the work take?

0:40:49 > 0:40:5118, 20 weeks.

0:40:51 > 0:40:55- OK.- And we'll be able to then put it on the market and see what happens.

0:40:55 > 0:40:57OK, and that's you working your socks off,

0:40:57 > 0:40:59weekends and in the week?

0:40:59 > 0:41:01Well, that's everybody working their socks off.

0:41:01 > 0:41:05- Anybody I can drag in, yeah!- Good man, rope everybody in.- Exactly.

0:41:05 > 0:41:07Just give us a bit of an insight, what are you going to do,

0:41:07 > 0:41:10- let's say down here first? - Well, it's a complete redecoration.

0:41:10 > 0:41:15Remove all these things, like these horrible tiles and so forth.

0:41:15 > 0:41:21The plan is to split up this room over there,

0:41:21 > 0:41:28and to generate what was the original kitchen into a utility...

0:41:28 > 0:41:30- toilet and utility room.- OK.

0:41:30 > 0:41:36To put some patio or French windows into that wall there.

0:41:36 > 0:41:40- Yeah, OK.- Which will lead out into, probably a conservatory.

0:41:40 > 0:41:45- That's cool.- And then, generally, sort of new bathroom, new kitchen.

0:41:45 > 0:41:48The kitchen will be around here.

0:41:48 > 0:41:50So, this room will be the kitchen.

0:41:50 > 0:41:53- Is it a kitchen/diner or just... - Yeah, kitchen/diner.

0:41:53 > 0:41:55Kitchen/ diner here. And front room stays as it is?

0:41:55 > 0:41:58Front room generally stays as it is, yeah.

0:41:58 > 0:42:03Take out the gas fires and so forth and put in central heating.

0:42:03 > 0:42:05And cut down half the wall

0:42:05 > 0:42:08to give off-road parking as well.

0:42:08 > 0:42:13- OK.- And build supporting...

0:42:13 > 0:42:16- And there you go.- No rest for you, you've got a busy few weeks coming!

0:42:16 > 0:42:21Well, yeah! I now have to work hard for a living.

0:42:21 > 0:42:23Hey, we all do. This is work for me as well.

0:42:23 > 0:42:25- Look at me, eh?- Well...

0:42:25 > 0:42:29I'm not quite good enough to be a footballer, I'm afraid.

0:42:29 > 0:42:32- Some said that about me as well, but we won't go into that.- Yeah, yeah.

0:42:32 > 0:42:35So, in... Did you say 18-20 weeks?

0:42:35 > 0:42:37- That's right, yes. - What will we come back to?

0:42:37 > 0:42:39What kind of finish are we expecting?

0:42:39 > 0:42:41Well, everything will change.

0:42:41 > 0:42:46It will be fairly sort of low-key and...

0:42:46 > 0:42:49- Modern?- Modern.- Modern finish. - Modern sort of finish.

0:42:49 > 0:42:53- Hopefully, appealing to people. - Good on you. Listen, good luck.

0:42:53 > 0:42:56- Many thanks to you. I'll need it! - You will!

0:42:56 > 0:42:59So, unfortunately, Ray's business went under

0:42:59 > 0:43:00during the recent recession.

0:43:00 > 0:43:03But he's got a very positive attitude.

0:43:03 > 0:43:05He's gone into business with his daughter, Robyn,

0:43:05 > 0:43:07and they've got themselves a decent house.

0:43:07 > 0:43:09Now, he's not just doing it for himself,

0:43:09 > 0:43:11he's doing it for the future of his family,

0:43:11 > 0:43:14which I think's a really nice touch.

0:43:14 > 0:43:16Five months is just about right.

0:43:16 > 0:43:1812 grand, I'm not too sure.

0:43:18 > 0:43:21You can find out how he gets on later in the programme.

0:43:24 > 0:43:27Well, earlier we saw how one of our properties turned out,

0:43:27 > 0:43:30but we still have to see about the other two.

0:43:30 > 0:43:32Yes, we do. How did they get on, are they happy?

0:43:32 > 0:43:35And have they stuck at the plan, or have they come unstuck?

0:43:35 > 0:43:37Let's find out.

0:43:37 > 0:43:40- MARTIN:- Back to East London now, in Chingford.

0:43:42 > 0:43:46It was way back in 2014 that I looked around this property that

0:43:46 > 0:43:49had a guide price of 325,000.

0:43:49 > 0:43:53The catalogue described it as a three-bed semi,

0:43:53 > 0:43:56but it was more like a five-bed semi inside,

0:43:56 > 0:43:59with the property being used as an HMO.

0:43:59 > 0:44:04It was gutted and cramped, with an inefficient layout.

0:44:04 > 0:44:06But it did have some rather exciting potential.

0:44:08 > 0:44:12Now, the catalogue does say a few magic words, and those are,

0:44:12 > 0:44:15"Potential for an extension."

0:44:15 > 0:44:18And, yes, I can absolutely see that.

0:44:18 > 0:44:22Both at the side and the back of the property.

0:44:22 > 0:44:26Now, that would massively increase the value of this house.

0:44:26 > 0:44:29That's the good news. The bad news is, looking around,

0:44:29 > 0:44:31I don't see any of the neighbours doing an extension,

0:44:31 > 0:44:33which means there might not have been

0:44:33 > 0:44:36a planning permission precedent set as yet.

0:44:36 > 0:44:40But if you could get it, make this a really big house or even flats -

0:44:40 > 0:44:45well, then we're talking serious numbers.

0:44:45 > 0:44:47Someone who was prepared to try

0:44:47 > 0:44:50to turn that potential into reality was Clive.

0:44:50 > 0:44:53Clive was working as a project manager for his friend and boss,

0:44:53 > 0:44:58Phil, who bought the property on auction day for 330,000.

0:44:58 > 0:45:01This would be the fifth property they've done,

0:45:01 > 0:45:04and they were heading straight down to the planning office.

0:45:04 > 0:45:06What's the planning you're applying for?

0:45:06 > 0:45:10We're applying to get rear and side extension.

0:45:10 > 0:45:12- Oh, wow.- And to turn this into one-bedroom flats.

0:45:12 > 0:45:15- Have you spoken to the planners at all?- We haven't as of yet.

0:45:15 > 0:45:17We're just getting drawings sorted out, etc,

0:45:17 > 0:45:19and then we'll have a chat with the planners,

0:45:19 > 0:45:21see where we go with it.

0:45:23 > 0:45:24Big plans, then.

0:45:24 > 0:45:27And to get those one-bedroom flats done,

0:45:27 > 0:45:31Clive predicted a total budget of £110,000,

0:45:31 > 0:45:34and a timescale of just four to five months.

0:45:42 > 0:45:45So, over two years later now, and, worryingly,

0:45:45 > 0:45:48it looks very similar from the outside.

0:45:50 > 0:45:53There doesn't seem to be any side extension either.

0:45:53 > 0:45:57No matter, I'm sure there will be a spectacular back extension

0:45:57 > 0:45:59that will blow your socks off.

0:45:59 > 0:46:04UPBEAT, FUNKY MUSIC

0:46:04 > 0:46:07Whoa, whoa, whoa - stop the music.

0:46:07 > 0:46:09MUSIC SLOWS DOWN AND STOPS

0:46:09 > 0:46:12That is not an extension.

0:46:14 > 0:46:17Hmm, something is amiss here.

0:46:17 > 0:46:19Maybe inside there's a lovely transformation?

0:46:23 > 0:46:30# Don't say nothing's changed with you... #

0:46:32 > 0:46:34Or maybe not.

0:46:34 > 0:46:38# I can hear it in your sighs

0:46:38 > 0:46:43# The way that you can't look me in the eyes

0:46:43 > 0:46:47# It's spelling out bad news... #

0:46:52 > 0:46:54Yes, I'm afraid this one won't be going into

0:46:54 > 0:46:57a Hammer Hall of Fame for transformations.

0:46:57 > 0:47:00Time, I think, to catch up with Clive.

0:47:02 > 0:47:05Since I last was here,

0:47:05 > 0:47:08obviously, we've put in applications for planning.

0:47:08 > 0:47:11The first one was rejected.

0:47:11 > 0:47:13We appealed against that.

0:47:13 > 0:47:15And that was rejected again.

0:47:15 > 0:47:16So we got the architect back

0:47:16 > 0:47:19to readdress the issues they brought up.

0:47:19 > 0:47:24We put another plan of submissions in, that was also rejected.

0:47:24 > 0:47:26For different reasons, this time.

0:47:26 > 0:47:28And that's where we've been with it so far.

0:47:28 > 0:47:32It's two years since we first started our application.

0:47:32 > 0:47:37The first one took over a year to get rejected and appealed, etc, etc.

0:47:37 > 0:47:39Then, I suppose, there was a couple of months

0:47:39 > 0:47:41we were doing the reapplication.

0:47:41 > 0:47:45That went in, they lost the application.

0:47:45 > 0:47:47They carried on, then we got the rejection on that, again.

0:47:47 > 0:47:50Speaking with the architect, it was just like,

0:47:50 > 0:47:52there's no point in trying to go further with this.

0:47:52 > 0:47:54It's just not going to happen.

0:47:54 > 0:47:58Unfortunately, acquiring planning permission can sometimes

0:47:58 > 0:48:01be a time-consuming and patience-testing exercise

0:48:01 > 0:48:05that doesn't always result in a positive outcome.

0:48:05 > 0:48:08Still, Clive and the company he works for

0:48:08 > 0:48:09made the best of it by renting out

0:48:09 > 0:48:13whilst they were grappling with the planning department.

0:48:13 > 0:48:14And once it became obvious

0:48:14 > 0:48:18they wouldn't get the permission they needed, they didn't hang about.

0:48:19 > 0:48:22After the rejections with the planning applications, etc,

0:48:22 > 0:48:28we just discussed and basically went to the estate agents to see

0:48:28 > 0:48:31what the values of properties were around here.

0:48:31 > 0:48:35On speaking to them, seeing what it was worth as it is,

0:48:35 > 0:48:37without spending anything on it,

0:48:37 > 0:48:39or doing work on it and then spending it,

0:48:39 > 0:48:41the obviously answer to us was just

0:48:41 > 0:48:44to put it straight on the market, as it is.

0:48:44 > 0:48:47So through the estate agents, we had an open day,

0:48:47 > 0:48:49an open viewing. People came in.

0:48:49 > 0:48:53We had two offers immediately from two people for the asking price.

0:48:53 > 0:48:57So it was just left to them to decide who wanted it, basically.

0:48:57 > 0:48:59Wow, well, that changes everything!

0:48:59 > 0:49:05# Don't go changing, trying to please me

0:49:07 > 0:49:12# You never let me down before, no

0:49:12 > 0:49:18# I took the good times, I'll take the bad times

0:49:18 > 0:49:23# I'll take you just the way you are... #

0:49:23 > 0:49:26They bought this property for 330,000,

0:49:26 > 0:49:31and Clive thinks they spent around about £11,000 on fees

0:49:31 > 0:49:33and planning applications.

0:49:33 > 0:49:38They just have managed to sell it on for £465,000,

0:49:38 > 0:49:42making a pre-tax profit of 124,000.

0:49:43 > 0:49:46So, after all that planning permission heartbreak,

0:49:46 > 0:49:49they've managed to come out with a very healthy profit.

0:49:55 > 0:49:57But we still have a few questions to ask.

0:49:57 > 0:50:01So we invited two estate agents along to give us their thoughts.

0:50:01 > 0:50:04First, what did the agent who saw the property originally

0:50:04 > 0:50:06make of the planning refusals?

0:50:07 > 0:50:10Well, looking around on this particular road,

0:50:10 > 0:50:11it's very residential,

0:50:11 > 0:50:14and there aren't any flats on this particular road.

0:50:14 > 0:50:15So I do believe that because

0:50:15 > 0:50:18it wasn't in keeping with the surrounding area,

0:50:18 > 0:50:20planning permission was not granted.

0:50:20 > 0:50:23Well, it's all water under the bridge right now anyway.

0:50:23 > 0:50:28But it does go to show that a chat with planning before you plunge

0:50:28 > 0:50:31into anything could prove invaluable.

0:50:31 > 0:50:33Really now, the only question remaining is,

0:50:33 > 0:50:37did Phil and Clive get the best possible deal?

0:50:37 > 0:50:41In its current condition, even though work is required,

0:50:41 > 0:50:47I believe it should achieve in the region of £450,000.

0:50:47 > 0:50:50I estimate the resale value of this property in its current state

0:50:50 > 0:50:56anywhere between £450,000 to £460,000.

0:50:56 > 0:51:01The market value, as it is, as we've just sold it for 465,

0:51:01 > 0:51:05so I think they are fair assumptions of the value, really.

0:51:06 > 0:51:08Yes, it's all well that ends well.

0:51:08 > 0:51:10It may not be the profit they were looking for,

0:51:10 > 0:51:13but 124,000 isn't too shabby.

0:51:13 > 0:51:16And it's not put them off investing again.

0:51:16 > 0:51:18Although there is one proviso...

0:51:19 > 0:51:23Nothing with major planning permission at the moment.

0:51:27 > 0:51:30We are stopping again in Wolverhampton,

0:51:30 > 0:51:32where I saw a three-bed semidetached house

0:51:32 > 0:51:35that looked like it hadn't been touched for some time.

0:51:37 > 0:51:38Now, this is a little bit strange -

0:51:38 > 0:51:41you've got kitchen cupboards over here,

0:51:41 > 0:51:44you've got a freestanding cooker over there and sink.

0:51:44 > 0:51:46Very old-fashioned layout.

0:51:46 > 0:51:50Now, there's got to be a way of using this space better.

0:51:50 > 0:51:54This house was crying out for modernisation throughout

0:51:54 > 0:51:57and a nice, open-plan kitchen/diner.

0:51:57 > 0:51:58I wasn't alone in thinking this,

0:51:58 > 0:52:03as Ray and daughter Robyn have paid £90,000 for this at auction.

0:52:03 > 0:52:05They planned on doing just that,

0:52:05 > 0:52:08trying to gain as much value as possible.

0:52:09 > 0:52:13As Ray's traffic sign manufacturing company sadly went out of business

0:52:13 > 0:52:14in the recession,

0:52:14 > 0:52:18they've since done a U-turn and decided to work together

0:52:18 > 0:52:20at property development instead.

0:52:22 > 0:52:25While Robyn and daughter Millie played outside,

0:52:25 > 0:52:27Ray explained why he would be more keen to sell this property on

0:52:27 > 0:52:29than rent it out.

0:52:29 > 0:52:31It's all about capital.

0:52:31 > 0:52:34- Yes, yes.- Capital to purchase the houses at auctions,

0:52:34 > 0:52:36because you need the capital there.

0:52:36 > 0:52:39Although I am selling another house as well,

0:52:39 > 0:52:42my own house, to generate further capital,

0:52:42 > 0:52:44to generate further projects like this.

0:52:44 > 0:52:46- In order to keep moving forward. - Yeah.

0:52:46 > 0:52:49The long-term plan is to build up a portfolio of ten,

0:52:49 > 0:52:52a dozen houses, to act as a further pension for me

0:52:52 > 0:52:56and something for the future for Robyn and the family.

0:52:56 > 0:53:00Ray hoped to keep the costs down by doing most of the work themselves,

0:53:00 > 0:53:04and calling in help from family members who work in various trades.

0:53:04 > 0:53:06Very handy.

0:53:06 > 0:53:09Ideally, he wanted to get the work done in five months.

0:53:09 > 0:53:12So we're back, six months later. How's it gone?

0:53:16 > 0:53:18Pretty well, it would seem.

0:53:18 > 0:53:21The kitchen's new position works much better in this corner.

0:53:21 > 0:53:25Previously, it was spread across two sides of the room.

0:53:25 > 0:53:30The other side still has some finishing touches to be done.

0:53:30 > 0:53:34But the addition of the sink in the downstairs loo is good.

0:53:34 > 0:53:37However, the big reveal is yet to come.

0:53:40 > 0:53:42The added space the conservatory gives

0:53:42 > 0:53:45the back of the downstairs is fantastic.

0:53:45 > 0:53:48And it doesn't impact on the huge garden.

0:53:48 > 0:53:50It also doesn't impact on Ray's pocket,

0:53:50 > 0:53:52because he got it second-hand.

0:53:56 > 0:53:59I picked it up from an online auction site.

0:53:59 > 0:54:02And it suited the exact sort of extension

0:54:02 > 0:54:05that we believed this house would need.

0:54:05 > 0:54:08I purchased it, and then got a couple of extra guys in

0:54:08 > 0:54:11to do the foundation work for me,

0:54:11 > 0:54:14constructed it, and it's turned out really, really well.

0:54:14 > 0:54:16I agree, it does look great.

0:54:16 > 0:54:21However, a word of caution - you can fall foul of planning here.

0:54:21 > 0:54:22Because of energy requirements,

0:54:22 > 0:54:26usually building regs require a conservatory to be separated

0:54:26 > 0:54:28by an insulated door.

0:54:28 > 0:54:31If it's open-plan to the rest of the house,

0:54:31 > 0:54:32it needs to be designed

0:54:32 > 0:54:35as an extension with the approved insulation and glazing.

0:54:35 > 0:54:37Anyway, conservatory aside,

0:54:37 > 0:54:40the rest of the renovation didn't come cheap.

0:54:40 > 0:54:44Every chimney breast has been taken out to give each room more space.

0:54:44 > 0:54:48As you can imagine, this is a very expensive and time-consuming job,

0:54:48 > 0:54:53which is why Ray is a month behind his five-month schedule.

0:54:54 > 0:54:58The main challenge was taking the chimney breasts out.

0:54:58 > 0:55:01A lot of legal things that you had to do -

0:55:01 > 0:55:04get approval by the council, structural designs,

0:55:04 > 0:55:08and then put a steel girder into the roof space

0:55:08 > 0:55:11to support the outside chimney.

0:55:11 > 0:55:15It was quite a feat to get it all in.

0:55:15 > 0:55:19And with a grunt and a groan from half a dozen men, it went up there.

0:55:19 > 0:55:23There are still finishing touches to do,

0:55:23 > 0:55:25such as windowsills and skirtings.

0:55:25 > 0:55:27But the house is now looking much better.

0:55:35 > 0:55:36Out the front, they still

0:55:36 > 0:55:39have to add the dropped kerb and remove the wall fully.

0:55:39 > 0:55:41But Ray expects to have that completed

0:55:41 > 0:55:44before he hopefully sells it on.

0:55:44 > 0:55:46All in all, he can be proud of the work he has done here.

0:55:48 > 0:55:50I have spent a lot of time here myself,

0:55:50 > 0:55:52doing a lot of the work myself.

0:55:52 > 0:55:54And I'm half-pleased with it all.

0:55:54 > 0:55:58I was going to get my nephew in to do the electrics,

0:55:58 > 0:56:01keep it in the family, if you know what I mean.

0:56:01 > 0:56:03Unfortunately, he didn't do the work on this occasion.

0:56:03 > 0:56:06He'll have to drop his price a bit!

0:56:06 > 0:56:08Ray did manage to find an electrician

0:56:08 > 0:56:10with prices to his liking,

0:56:10 > 0:56:12in the hope of sticking to his 12 grand budget.

0:56:12 > 0:56:15However, the addition of the conservatory,

0:56:15 > 0:56:17removal of the chimney breasts

0:56:17 > 0:56:20and other extras has taken his spend to £20,000.

0:56:20 > 0:56:22But Ray thinks it's money well spent.

0:56:22 > 0:56:25I feel it has turned out really well,

0:56:25 > 0:56:28and I have thought about maybe I could even move in here myself.

0:56:30 > 0:56:33We will see if local property experts agree with Ray.

0:56:33 > 0:56:36We've asked two along to get their thoughts.

0:56:36 > 0:56:39First, let's hear from the agent who saw it last time.

0:56:41 > 0:56:43It's been refurbished.

0:56:43 > 0:56:47So, new kitchen, new bathroom, modernised.

0:56:47 > 0:56:49And with that open-plan kitchen/dining area,

0:56:49 > 0:56:53that's going to suit a lot of young and growing families.

0:56:53 > 0:56:56It's a new kitchen, a new bathroom, a pleasant residential area here,

0:56:56 > 0:56:58mostly private properties.

0:56:58 > 0:57:00There's very little for sale in this area, and, certainly,

0:57:00 > 0:57:03the traditional style with the bay windows at the front

0:57:03 > 0:57:05is a little more popular than ones with less character.

0:57:05 > 0:57:08A nice, positive response from the agents, then.

0:57:08 > 0:57:13Ray has spent a total of 110 grand on purchase and renovations.

0:57:13 > 0:57:16But be aware, there are always other costs to include,

0:57:16 > 0:57:18like the auction fees,

0:57:18 > 0:57:22council tax and estate agents' fees when selling on.

0:57:22 > 0:57:28In this case, that brings Ray's total to £118,000.

0:57:28 > 0:57:30So what about the values of this house now?

0:57:30 > 0:57:35I'd be looking at an asking price in the region of £130,000.

0:57:35 > 0:57:37I would expect the property

0:57:37 > 0:57:39to achieve in the region of £130,000 to £135,000.

0:57:39 > 0:57:44What you're getting for your money, I think it's worth more than that.

0:57:44 > 0:57:49Ray and Robyn are hoping to improve on that potential 17 grand profit.

0:57:49 > 0:57:52Ray went the whole distance with this property,

0:57:52 > 0:57:54so what is his immediate plan?

0:57:54 > 0:57:59At the moment, the plan is to sell it and put it at a price we feel

0:57:59 > 0:58:02is right for the work that we've done here.

0:58:02 > 0:58:06If that doesn't work, I am currently selling my own house,

0:58:06 > 0:58:08where I live in Staffordshire,

0:58:08 > 0:58:13and maybe I'll come and live here for a wee while

0:58:13 > 0:58:15and just see how it goes.

0:58:17 > 0:58:19Well, that's your lot

0:58:19 > 0:58:22of today's lots. We'll be back with plenty more for you next time.

0:58:22 > 0:58:24Yes, don't worry, we'll be back soon

0:58:24 > 0:58:25with more tales from the auction room.

0:58:25 > 0:58:27Yes, so join us then for more Homes Under The Hammer,

0:58:27 > 0:58:30- and we'll see you next time. ALL:- Goodbye.