Episode 60

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0:00:00 > 0:00:02Hello and welcome to the show.

0:00:02 > 0:00:06Now, on this programme, we meet an array of people,

0:00:06 > 0:00:09from dedicated developers to fearless first-timers,

0:00:09 > 0:00:11and they all have one thing in common.

0:00:11 > 0:00:15Yes, they've all caught the property-developing bug.

0:00:15 > 0:00:18But no matter where they are on the property-developing journey,

0:00:18 > 0:00:21there will definitely be some creases that need to be ironed out.

0:00:21 > 0:00:23Yes, but that shouldn't be too much trouble.

0:00:23 > 0:00:25A bit of research and hard graft,

0:00:25 > 0:00:28both of which you will need if you buy your next home under the hammer.

0:00:54 > 0:00:56The great thing about a property auction

0:00:56 > 0:00:58is the sheer variety that's on offer.

0:00:58 > 0:01:01We've seen people bid for all manner of properties -

0:01:01 > 0:01:03townhouses, bungalows, flats.

0:01:03 > 0:01:06- The list goes on.- So, what are we going to feature on today's show?

0:01:06 > 0:01:08Let's find out.

0:01:09 > 0:01:13I'm off to see a flat in Streatham, and as you might expect from London,

0:01:13 > 0:01:15it's a bit small.

0:01:15 > 0:01:18This room just feels like it's been cut in half.

0:01:19 > 0:01:22While in Cumbria, I've got a three-bed bungalow

0:01:22 > 0:01:24guided at £45,000 plus.

0:01:24 > 0:01:26That isn't half bad, right?

0:01:27 > 0:01:30What's wrong with it?

0:01:30 > 0:01:32And I've got an end terrace in Derbyshire.

0:01:32 > 0:01:35And when it comes to renovations, I'm not doing things by halves.

0:01:38 > 0:01:40It's all got to come out.

0:01:41 > 0:01:43All of these have been sold at auction,

0:01:43 > 0:01:45and we'll find out who bought them and what they paid for them

0:01:45 > 0:01:48when they went under the hammer.

0:01:48 > 0:01:50It's gone.

0:01:54 > 0:01:57Part of the secret to buying property in London is knowing where

0:01:57 > 0:01:59the next hot area will be.

0:01:59 > 0:02:02I wonder if Streatham might be a candidate.

0:02:03 > 0:02:06Prices aren't as high as in neighbouring Brixton and Wimbledon,

0:02:06 > 0:02:08but with plenty of new development

0:02:08 > 0:02:11and improvements to the high street,

0:02:11 > 0:02:13maybe it's a good place to look for a bargain.

0:02:18 > 0:02:22I'm just down the road from Tooting Common on this lovely residential,

0:02:22 > 0:02:26leafy street. Also, Streatham Hill station is just a short walk away,

0:02:26 > 0:02:28as is the local high street, so great location.

0:02:28 > 0:02:32And the property I'm here to see is a one-bedroom first-floor flat

0:02:32 > 0:02:36with a guide price of £195,000-plus.

0:02:36 > 0:02:39It's in here. What a magnificent house.

0:02:39 > 0:02:42Yeah, this one looks really good.

0:02:42 > 0:02:46# But there's a sting in the tail

0:02:46 > 0:02:49# Of this honeybee... #

0:02:49 > 0:02:53So, it's not actually the main entrance you walk in.

0:02:53 > 0:02:56It's a narrow staircase, which is steel.

0:02:56 > 0:02:58Oh, not great in icy weather.

0:02:58 > 0:03:01Not great for anybody with mobility issues.

0:03:01 > 0:03:03It really counts them out.

0:03:03 > 0:03:05And actually, if you've got a pram, your shopping,

0:03:05 > 0:03:09moving in with lots of sofas, it could be very tricky.

0:03:09 > 0:03:11Let's see what's inside.

0:03:11 > 0:03:13Well, this communal area is pretty dingy.

0:03:13 > 0:03:18It's quite poky. Through to the flat and the reception room.

0:03:18 > 0:03:20It's an OK space...

0:03:20 > 0:03:21..for London.

0:03:21 > 0:03:26And a bathroom which is absolutely flooded with light.

0:03:26 > 0:03:28I'd love to have a daytime bath in there.

0:03:28 > 0:03:31But the odd thing is, the rest of the flat is not flooded with light.

0:03:31 > 0:03:33You don't want your bathroom

0:03:33 > 0:03:35to be the place where you get your bright light.

0:03:35 > 0:03:38You want it everywhere. And this explains the dinginess.

0:03:38 > 0:03:43So, you've only got one not-huge window.

0:03:43 > 0:03:46So, I'm just thinking, is there a way of making this place brighter?

0:03:46 > 0:03:50A bright idea would be to take down that separating wall

0:03:50 > 0:03:53to let the light from the glass panel above

0:03:53 > 0:03:57stream directly into this side of the living room.

0:03:57 > 0:04:01# Been down, yeah

0:04:01 > 0:04:06# But I've come back brighter

0:04:06 > 0:04:08# Yeah!... #

0:04:10 > 0:04:13Also, you could add a full-length frosted-glass door to the bathroom,

0:04:13 > 0:04:18provided, of course, that it's made from safety glass, unlike this one,

0:04:18 > 0:04:19which needs replaced and leads...

0:04:20 > 0:04:23..through to our first and only bedroom.

0:04:23 > 0:04:27This room just feels like it's been cut in half,

0:04:27 > 0:04:31and that's exactly what has happened, because it's a conversion.

0:04:31 > 0:04:34But you would accept an awful lot of things that you might not

0:04:34 > 0:04:38because we are in London. And the windows...

0:04:38 > 0:04:41Well, they're just not in keeping with the property

0:04:41 > 0:04:44and indeed with many of the houses on the rest of the street.

0:04:44 > 0:04:47It'd be lovely to restore some sash windows here.

0:04:47 > 0:04:50That said, because this is a conservation area,

0:04:50 > 0:04:54there are many more hoops you have to jump through to get permission.

0:04:55 > 0:04:59This flat really does have a double whammy.

0:04:59 > 0:05:02Not only is it in a conservation area, it's leasehold,

0:05:02 > 0:05:05so to make any of those changes I mentioned,

0:05:05 > 0:05:07you'll first need the permission of the freeholder,

0:05:07 > 0:05:11and they have the right to refuse.

0:05:11 > 0:05:14# It hurt me so much

0:05:15 > 0:05:18# To be able to look

0:05:18 > 0:05:21# When I know I can't touch... #

0:05:23 > 0:05:25And just in case you thought

0:05:25 > 0:05:27that was all there was to worry about here,

0:05:27 > 0:05:31the lease on this flat only has 54 years left on it.

0:05:32 > 0:05:37Although individual lenders vary, with less than 60 years left,

0:05:37 > 0:05:40how will that affect this property's mortgageability?

0:05:40 > 0:05:44Well, we've asked along a local estate agent to get his opinion.

0:05:45 > 0:05:49The lease being 54 years would make the property unmortgageable

0:05:49 > 0:05:52to most lenders so would definitely affect the resale.

0:05:52 > 0:05:55You can extend it by negotiating with the freeholder,

0:05:55 > 0:05:58but it's wise to start negotiating before you purchase,

0:05:58 > 0:06:00as it can be costly.

0:06:00 > 0:06:04The agent thinks that even if renovated to a good standard,

0:06:04 > 0:06:07the resale value without extending the lease

0:06:07 > 0:06:11would be £250,000 to £275,000.

0:06:11 > 0:06:14But how much could it be worth if the lease was extended?

0:06:15 > 0:06:19The value of this property once it's brought up to a good standard

0:06:19 > 0:06:24will be £325,000 to £350,000.

0:06:24 > 0:06:27Well, this flat is not as magnificent on the inside as it is

0:06:27 > 0:06:32on the outside, but it could be a great find for someone willing

0:06:32 > 0:06:37to put in a bit of work. It just needs some modernisation and TLC.

0:06:37 > 0:06:42A guide price of £195,000-plus doesn't seem like a steal,

0:06:42 > 0:06:43but we are in London,

0:06:43 > 0:06:46and this could be a great location and a great flat.

0:06:46 > 0:06:49Let's find out who agreed when it went under the hammer.

0:06:49 > 0:06:51Nice double-fronted building.

0:06:52 > 0:06:54And 195 on this.

0:06:54 > 0:06:56Who'd like to start? 195?

0:06:56 > 0:06:58195, sitting down.

0:06:58 > 0:07:02195. 200. 200, 200.

0:07:02 > 0:07:04Yes, on my right.

0:07:05 > 0:07:09200. 205. 210.

0:07:09 > 0:07:13215. 220. 225.

0:07:13 > 0:07:15230. 225.

0:07:15 > 0:07:17Back to you. 230. Someone coming over here.

0:07:17 > 0:07:19230?

0:07:19 > 0:07:22No? If not, 225.

0:07:22 > 0:07:25Another thousand, 226?

0:07:26 > 0:07:28225, first time.

0:07:30 > 0:07:31Second time.

0:07:31 > 0:07:34Third and last time, if you're all done.

0:07:36 > 0:07:37Sold, 225.

0:07:37 > 0:07:43- Well done.- The successful bid was paid by Paul, who paid £225,000.

0:07:45 > 0:07:47He's bought it with his wife Kia.

0:07:47 > 0:07:49They've decided to take up property development,

0:07:49 > 0:07:53and this is their first venture, which they plan to sell on.

0:07:53 > 0:07:56So, to find out what they're going to do with the property,

0:07:56 > 0:07:59I met them there.

0:07:59 > 0:08:02- Kia?- Hello there.- Hello. Paul?- Hi. - Lovely to meet you.- And you.

0:08:02 > 0:08:05- And congratulations. - Thank you very much.

0:08:05 > 0:08:09Yeah, what a purchase. I really like it. You obviously did.

0:08:09 > 0:08:11Of course, yeah. I mean, it was...

0:08:11 > 0:08:15I saw it, we actually came to see it twice before the auction

0:08:15 > 0:08:18- and both fell in love with it. - First of all, a wee bit about you.

0:08:18 > 0:08:24If this was your first auction purchase, what do you do normally?

0:08:24 > 0:08:26Well, I used to be a doctor, and I retired.

0:08:26 > 0:08:28We've always had an interest in property.

0:08:28 > 0:08:31Then we thought, well, why not do this as a...

0:08:32 > 0:08:36- ..something to do in my retirement, I guess.- Why not?- Yeah. Exactly.

0:08:36 > 0:08:39- And Kia?- Yes. - Have you been in property?

0:08:39 > 0:08:41Erm, no, not particularly.

0:08:41 > 0:08:44I've lived in a few nice houses of my own,

0:08:44 > 0:08:47which I think I presented reasonably well,

0:08:47 > 0:08:53and that's really, I suppose, how we agreed to split our roles.

0:08:53 > 0:08:55Paul's the really practical one, having been a doctor.

0:08:55 > 0:08:58You know, doctor, plumbing, all not that far removed!

0:08:58 > 0:09:03And I'm more of the sort of style wallah.

0:09:03 > 0:09:06So I force him into much more expensive purchases than he'd

0:09:06 > 0:09:09normally do just so that it looks kind of cool and sexy and nice.

0:09:09 > 0:09:12You said you'd been to see the property twice.

0:09:12 > 0:09:15- Uh-huh.- What was it about it that you wanted?

0:09:15 > 0:09:19For this area, I think it's perfect. It's a lovely area, lovely street.

0:09:19 > 0:09:22Very quiet. But close to the amenities.

0:09:22 > 0:09:25What do you want to do to the flat?

0:09:25 > 0:09:28Well, I guess a complete refurbishment

0:09:28 > 0:09:33to make it really attractive to the sort of target market

0:09:33 > 0:09:34that we're aiming for.

0:09:34 > 0:09:39- So, you're aiming quite high-spec? - Reasonably high-spec, yes.

0:09:39 > 0:09:42I think this is a great little place for the young professionals

0:09:42 > 0:09:46that would want that. I think they have... They're quite discerning.

0:09:46 > 0:09:48So I think it would have to be quite high-spec

0:09:48 > 0:09:53and quite nice-looking and attractive and aspirational...

0:09:54 > 0:09:55..to give it that edge.

0:09:55 > 0:10:01Not only good flooring, but underfloor heating in the bathroom,

0:10:01 > 0:10:04perhaps the system where you can control all your heating

0:10:04 > 0:10:06and the lighting from your phone.

0:10:06 > 0:10:09I put in underfloor heating to my house,

0:10:09 > 0:10:10so I know quite a lot about it.

0:10:10 > 0:10:13Are you thinking of doing the pipe system or doing...?

0:10:13 > 0:10:15- I think the electric system. - The electric system.

0:10:15 > 0:10:19That's what we've had a quote for from the bathroom people already.

0:10:19 > 0:10:24And I think that little extra touch of perceived luxury,

0:10:24 > 0:10:29people are going to like. I think that's the way we want to be going.

0:10:29 > 0:10:31# Do whatever must be done

0:10:31 > 0:10:33- # Oh, Lord, I got a hatful of blues - Got a hatful of blues

0:10:33 > 0:10:36# Yeah, I got a hatful of blues

0:10:39 > 0:10:41# Lord, I got a hatful of blues... #

0:10:41 > 0:10:45It might seem a lot of talk about ways to keep your tootsies warm,

0:10:45 > 0:10:48but Kia certainly knows what she wants.

0:10:48 > 0:10:50She used to work at a leading auction house,

0:10:50 > 0:10:54so I expect her artistic flair will shine through in this renovation.

0:10:55 > 0:10:58Most plans are in place, but they are still hammering out

0:10:58 > 0:11:01the details on what to do about the windows.

0:11:03 > 0:11:05Any other layout things you're planning on doing?

0:11:05 > 0:11:08- Really, there's not much you can do. - Well, I think this wall...

0:11:08 > 0:11:09The one behind you, yeah.

0:11:09 > 0:11:12This little alcove into the bathroom seems to be wasted space.

0:11:12 > 0:11:17I think we'll get rid of that and move the wall straight across here,

0:11:17 > 0:11:21so perhaps get a slightly bigger bathroom with the light here,

0:11:21 > 0:11:23glass here right across,

0:11:23 > 0:11:26bringing the light in from that point of view.

0:11:26 > 0:11:30Yeah, do you know if...? Because it is a conservation area. Normally,

0:11:30 > 0:11:32you wouldn't have to worry about knocking down internal walls,

0:11:32 > 0:11:35but do you know if you do have to get consent for that?

0:11:35 > 0:11:37I don't think we'll have to get consent for that.

0:11:37 > 0:11:39Obviously, we'll have to speak to the freeholder,

0:11:39 > 0:11:41but I hope that won't be a problem.

0:11:41 > 0:11:44Now, speaking of freeholds and leases...

0:11:44 > 0:11:46- Yeah. - ..the lease is 54 years.

0:11:46 > 0:11:49- That didn't put you off? - No, it didn't put us off.

0:11:49 > 0:11:54The leaseholder actually owns the ground-floor property.

0:11:54 > 0:11:58She is actually overseas, and I spoke to her lawyer,

0:11:58 > 0:12:00who has power of attorney, beforehand,

0:12:00 > 0:12:02who said there shouldn't be a problem,

0:12:02 > 0:12:05she doesn't envisage a problem extending the lease.

0:12:05 > 0:12:08And one of the other flats in the building has already had the lease

0:12:08 > 0:12:12extended, so I don't anticipate any major problems with that.

0:12:12 > 0:12:16- Lovely. And how long do you want this project to take?- Well, I guess,

0:12:16 > 0:12:20to some extent it is going to depend on the planning situation,

0:12:20 > 0:12:22but I reckon we're looking at about three months.

0:12:22 > 0:12:25- So, what budget are you thinking of? - Well, I suppose it depends

0:12:25 > 0:12:29on the window situation, but for doing the rest of the flat,

0:12:29 > 0:12:32- about 20,000.- I can't wait to see what you do with the place.

0:12:32 > 0:12:35- I'm expecting high-end. - Absolutely.- You will get high-end.

0:12:35 > 0:12:38- Good luck.- Thank you very much indeed. Thank you.- Thanks, Paul.

0:12:38 > 0:12:40- Nice to meet you, Kia. - Thank you.

0:12:40 > 0:12:43Retired doctor Paul and his wife Kia,

0:12:43 > 0:12:45they've bought a lovely little property here,

0:12:45 > 0:12:48but will it give them high blood pressure

0:12:48 > 0:12:50trying to deal with that short leasehold and selling it on

0:12:50 > 0:12:54and also having a property that's in a conservation area?

0:12:54 > 0:12:57They want to spend a lot of money to make this flat really high-end,

0:12:57 > 0:13:00but will they get that return on the investment?

0:13:00 > 0:13:03Hopefully, we'll come back and say it's just what the doctor ordered.

0:13:03 > 0:13:06You can find out later in the show.

0:13:11 > 0:13:14I'm on the Cumbrian coast and in the village of Flimby,

0:13:14 > 0:13:16once known for its coal.

0:13:16 > 0:13:18But with those days behind us,

0:13:18 > 0:13:22wind farms have replaced coal in the energy stakes in the area.

0:13:22 > 0:13:25I wonder if I'll be blown away by today's offering.

0:13:26 > 0:13:29Well, literally a stone's throw from the coast

0:13:29 > 0:13:31is the property I'm here to see,

0:13:31 > 0:13:34and it's one of those auction lots which...

0:13:34 > 0:13:36I don't know, immediately,

0:13:36 > 0:13:40you're going to sense something might not be quite right.

0:13:40 > 0:13:45£45,000-plus was the guide price for this,

0:13:45 > 0:13:48a three-bedroomed detached bungalow.

0:13:48 > 0:13:51That doesn't sound like a lot of money to me.

0:13:53 > 0:13:54What's wrong with it?

0:13:54 > 0:13:57# What's wrong with you?

0:13:57 > 0:14:00# You're looking kind of down to me

0:14:02 > 0:14:05# Got to turn around... #

0:14:05 > 0:14:07OK. It doesn't look so bad so far.

0:14:07 > 0:14:09Erm, it doesn't smell damp.

0:14:09 > 0:14:13Nice, big entrance area, creating this lovely open feel

0:14:13 > 0:14:16to the centre of the bungalow. A fairly standard design,

0:14:16 > 0:14:20you know, one big area off which all three rooms are situated.

0:14:20 > 0:14:23Three bedrooms - one there, one there, one there.

0:14:23 > 0:14:26Looks like a bit of damp in that one.

0:14:26 > 0:14:29That's not too bad. Good-sized family bathroom.

0:14:29 > 0:14:32I love the colour of that suite!

0:14:32 > 0:14:36That is classic! Erm, through into a lounge and what seems to be...

0:14:36 > 0:14:39..yep, a sort of kitchen/dining area.

0:14:39 > 0:14:42It looks like somebody's knocked a bit of this wall out.

0:14:42 > 0:14:46Dining area here. Kitchen there. Obviously, needs a bit of work

0:14:46 > 0:14:48and new units and everything,

0:14:48 > 0:14:51but it looks like there's a utility further that way. Erm...

0:14:53 > 0:14:55Ah.

0:14:59 > 0:15:01# Listen to what I say... #

0:15:01 > 0:15:06Oh, dear. With cracks like this in the floor and ceiling,

0:15:06 > 0:15:10it does beg the question, is this Flimby bungalow, well, flimsy?

0:15:10 > 0:15:13The evidence is apparent in the lounge, too.

0:15:13 > 0:15:15Cracks in the corners here.

0:15:15 > 0:15:19All along the top, where the wall meets the ceiling.

0:15:19 > 0:15:24And the front wall of the property, a really nasty-looking crack.

0:15:24 > 0:15:31It would seem that there is some kind of structural problem here.

0:15:31 > 0:15:33Subsidence, maybe a wall giving way.

0:15:33 > 0:15:37I don't know. Needs a bit more investigation.

0:15:39 > 0:15:43Maybe that's the reason for that price.

0:15:43 > 0:15:46Out the back of the property, and a half-decent-sized garden

0:15:46 > 0:15:51and the benefit of real nice views across this open countryside.

0:15:51 > 0:15:54However...what's that?

0:15:54 > 0:15:57It doesn't take a Sherlock Holmes to work out they're Portakabins,

0:15:57 > 0:16:02and they could be the precursor to some building work going on there.

0:16:02 > 0:16:05It's worth digging around, checking out if there are any

0:16:05 > 0:16:07local plans for housing developments or whatever,

0:16:07 > 0:16:11because that view might not be here forever.

0:16:11 > 0:16:15# I've seen the cracks in this town... #

0:16:15 > 0:16:18A little research has thrown up that this house was built on

0:16:18 > 0:16:23what used to be an ash dump, and close by was a pond.

0:16:23 > 0:16:25So potential problems with foundations

0:16:25 > 0:16:27immediately spring to mind.

0:16:28 > 0:16:31A professional survey should unearth the root cause,

0:16:31 > 0:16:33but before going to that expense,

0:16:33 > 0:16:37the advice of a local estate agent could prove invaluable.

0:16:37 > 0:16:40We called in the auctioneer who sold the property for his opinion.

0:16:42 > 0:16:45There's evidence of the foundations giving way,

0:16:45 > 0:16:48so there's probably underpinning required.

0:16:48 > 0:16:51There's also some evidence of wall tie failure,

0:16:51 > 0:16:56and there's also evidence of what we call locally slag flooring,

0:16:56 > 0:17:02where the construction of the floor's from material -

0:17:02 > 0:17:06sand, beach sand, stones, pit slag -

0:17:06 > 0:17:10and sometimes it tends to bubble in the middle or spread out.

0:17:10 > 0:17:11So the whole thing needs

0:17:11 > 0:17:13a structural engineer's report, I think.

0:17:13 > 0:17:19It could be that the property might be better to be floored and rebuilt.

0:17:19 > 0:17:22Just to clarify, "floored" means razed to the ground.

0:17:22 > 0:17:25You'd still have the site to sell after demolition and clearing,

0:17:25 > 0:17:28but how much would it cost to put this place right?

0:17:28 > 0:17:33I think a guesstimate for all the work, including wall tie failure,

0:17:33 > 0:17:37remedial underpinning, re-laying the floors then refurbishment of

0:17:37 > 0:17:40the property, including kitchen, bathroom, windows,

0:17:40 > 0:17:44heating, floor coverings, decorated throughout...

0:17:44 > 0:17:49..I think it's probably in the region of £30,000 to £40,000.

0:17:49 > 0:17:52Potentially cheaper than I thought, and, once done,

0:17:52 > 0:17:56what would this potential £45,000-plus house sell for?

0:17:56 > 0:17:59I think you're probably looking in the region of

0:17:59 > 0:18:02£130,000.

0:18:05 > 0:18:10Well, it's a bungalow which certainly has a lot of space,

0:18:10 > 0:18:13but it's certainly one of those auction lots

0:18:13 > 0:18:15where it is buyer beware,

0:18:15 > 0:18:19because what kind of problems are hidden beneath?

0:18:19 > 0:18:24I don't know. Let's see who bought it when it went under the hammer.

0:18:27 > 0:18:30Spacious detached bungalow, this one.

0:18:30 > 0:18:33Modernisation and structural attention is required.

0:18:33 > 0:18:36£45,000 bid.

0:18:36 > 0:18:39At 45 here, seated, right away at 45 I'm bid now.

0:18:39 > 0:18:43In once. At 45,000. 46, back row.

0:18:43 > 0:18:4547, may I see? And 48.

0:18:45 > 0:18:50Rapidly exceeding the guide prize, the bids climb to 58,000,

0:18:50 > 0:18:51where we rejoin the auction.

0:18:51 > 0:18:5558. 58 I'm bid.

0:18:55 > 0:18:5759? And 60, may I?

0:18:57 > 0:18:5960, you can. One...

0:18:59 > 0:19:01Two... 62, I've got.

0:19:01 > 0:19:0463. A shake of the head at 63.

0:19:04 > 0:19:07At £62,000, first time.

0:19:07 > 0:19:09£62,000, second time.

0:19:09 > 0:19:14Are you sure? At £62,000, selling away, all done, all out.

0:19:16 > 0:19:18Could I have your paddle number, please?

0:19:18 > 0:19:21Securing the lot was local electrician Lee,

0:19:21 > 0:19:24who lives just a few hundred yards from the bungalow

0:19:24 > 0:19:28with his girlfriend Paula and two-year-old daughter Keeva.

0:19:28 > 0:19:30He initially suspected the cracks

0:19:30 > 0:19:34were due to the weight of the large chimney at the side of the bungalow,

0:19:34 > 0:19:36which shows signs of movement.

0:19:37 > 0:19:42We met to discuss his plans back at his £62,000 purchase.

0:19:42 > 0:19:45Lee, good to meet you. Congratulations.

0:19:45 > 0:19:48- Thank you.- Tell me why you wanted to buy the bungalow.

0:19:48 > 0:19:52I wanted a house for meself, ideally.

0:19:52 > 0:19:57And, well, the starting price sort of attracted us to the auction,

0:19:57 > 0:20:00and when we got there obviously it went for a bit more than we thought,

0:20:00 > 0:20:08but it was still just beneath me top line, so we made it, luckily.

0:20:08 > 0:20:12Good job. What was it about this place that particularly appealed?

0:20:12 > 0:20:15Erm, nothing in particular.

0:20:15 > 0:20:17It's just round the corner, and it was just there.

0:20:17 > 0:20:21And I wasn't really looking for anything, but we looked at it.

0:20:21 > 0:20:25This had been up for auction a couple of months before I bought it,

0:20:25 > 0:20:28and...I think it went for about somewhere in the mid-50s.

0:20:28 > 0:20:31When it came back on the market, I thought there's a good chance

0:20:31 > 0:20:34it'll make a similar price, so I had a go and we won it, so...

0:20:35 > 0:20:38Were you suspicious at all about the fact that it had been

0:20:38 > 0:20:41in the auction, sold, put back straight into the auction?

0:20:41 > 0:20:43Sometimes that could flag up a bit of an issue.

0:20:43 > 0:20:46I just thought, well, there's a good chance somebody's bought it,

0:20:46 > 0:20:49expected a mortgage on it and not been given it

0:20:49 > 0:20:53because there's obviously something badly wrong with it.

0:20:53 > 0:20:55But that didn't put me off.

0:20:55 > 0:20:59I thought, "We'll deal with that when we come to it."

0:20:59 > 0:21:01Lee's already started alterations,

0:21:01 > 0:21:03having already knocked down the kitchen wall,

0:21:03 > 0:21:07and at least he viewed the property inside before the auction.

0:21:07 > 0:21:12What have you noticed since you've been here more?

0:21:12 > 0:21:17Just more cracks. Bigger cracks. Erm...

0:21:17 > 0:21:19Yeah, there's a lot more cracks than I thought.

0:21:19 > 0:21:23- Right. And what do you think about that?- Erm...

0:21:24 > 0:21:26Again, we've just got to wait and see

0:21:26 > 0:21:30or get somebody to have a look at it and see

0:21:30 > 0:21:34if I put plans in, because the idea is really it's a family home.

0:21:34 > 0:21:35I would like it to be a dormer bungalow.

0:21:35 > 0:21:39- Nice.- If I can put in the planning permission and get it granted

0:21:39 > 0:21:43for that, then we'll have to look at how we're going to do it,

0:21:43 > 0:21:44whether we can go up

0:21:44 > 0:21:48or certain bits of it will have to come down,

0:21:48 > 0:21:50and it might even need underpinned or just...

0:21:50 > 0:21:52I don't know. I'm just kind of guessing.

0:21:52 > 0:21:55You seem remarkably calm about it.

0:21:55 > 0:21:58Well, there's not much I can do about it now, is there?

0:21:58 > 0:22:03- It's done, and we'll just deal with it when we get to it.- Right.

0:22:05 > 0:22:09Very pragmatic, but I would think making the loft space habitable

0:22:09 > 0:22:12may be problematic given the structural weaknesses.

0:22:12 > 0:22:16But I guess it depends on how much money he can throw at the problems.

0:22:16 > 0:22:19So, what's the budget for what you're planning?

0:22:19 > 0:22:22Basically, I wouldn't like to spend any more than sort of £70,000.

0:22:22 > 0:22:24- 70?- Yeah.

0:22:24 > 0:22:29- 70?!- I honestly just don't know what's to do and what needs to do

0:22:29 > 0:22:32- and what things cost.- But I was worried you were going to say,

0:22:32 > 0:22:34like, ten to 15, and I was going to say that

0:22:34 > 0:22:37that's probably going to be a bit tricky, but 70 is definitely

0:22:37 > 0:22:40- a healthy budget. - Yeah. I think...

0:22:41 > 0:22:44What does that work out? 132,000,

0:22:44 > 0:22:46something like that, at the end of it all,

0:22:46 > 0:22:52and I just think that will be a fair price for a house of this size

0:22:52 > 0:22:55- and in this area. - Yeah, definitely.

0:22:55 > 0:22:58It's just about not being broke in the process.

0:22:58 > 0:23:00And what's the timescale?

0:23:00 > 0:23:0212 months, I think...

0:23:02 > 0:23:04..we'd like to be all sorted out

0:23:04 > 0:23:07or at least somewhere you could move into.

0:23:07 > 0:23:11Are you going to do anything other than the electrics?

0:23:11 > 0:23:17I'd like to think I'll be allowed to labour for the other trades,

0:23:17 > 0:23:19but obviously, I'll do all the electrics.

0:23:19 > 0:23:23I'll help out with the rest of it and just try and keep costs down.

0:23:23 > 0:23:27If I start getting in the way and increasing costs I'll step back

0:23:27 > 0:23:31- and let them get on with it. - Well, listen, congratulations.

0:23:31 > 0:23:34Good luck with it, and I look forward to seeing how you do get on.

0:23:34 > 0:23:37I hope the cracks don't turn out to be as dramatic as they look.

0:23:37 > 0:23:39Well, fingers crossed. We'll see.

0:23:41 > 0:23:46Well, it's great that Lee has found this place for him and his family,

0:23:46 > 0:23:49but I am very, very worried about

0:23:49 > 0:23:52what it's going to take to sort it out.

0:23:52 > 0:23:55How bad is the subsidence, if that's what it is?

0:23:55 > 0:23:59What are causing those cracks? So much work to be done,

0:23:59 > 0:24:01and although he's got a very healthy budget,

0:24:01 > 0:24:06a lot of that could be taken up just getting the basics right.

0:24:06 > 0:24:09How will he get on? You can find out later in the show.

0:24:10 > 0:24:14Coming up, there might be a little magic at this house in Derbyshire.

0:24:14 > 0:24:16Some good storage under the stairs.

0:24:16 > 0:24:19Keep your wellies in there, your coats.

0:24:19 > 0:24:21Or your wizard.

0:24:23 > 0:24:27And find out if Lee needed a magic wand to sort out all those cracks

0:24:27 > 0:24:28at his bungalow.

0:24:33 > 0:24:34MUSIC: Stairway To Heaven by Led Zeppelin

0:24:34 > 0:24:37Back now to Streatham, south London, where previously,

0:24:37 > 0:24:39I looked around a one-bedroom first-floor flat

0:24:39 > 0:24:41in this splendid house.

0:24:41 > 0:24:45Unfortunately, the only access was a bit of a challenge for some.

0:24:45 > 0:24:48It's a narrow staircase, which is steel.

0:24:48 > 0:24:50Oh, not great in icy weather.

0:24:50 > 0:24:52Not great for anyone with mobility issues.

0:24:52 > 0:24:54It really counts them out.

0:24:54 > 0:24:57And actually, if you've got a pram, your shopping,

0:24:57 > 0:25:00moving in with lots of sofas, it could be very tricky.

0:25:00 > 0:25:04There's no doubt the access would limit the appeal of this flat,

0:25:04 > 0:25:07but would the purchaser be...

0:25:07 > 0:25:12# Buying a stairway to heaven... #

0:25:12 > 0:25:16The windows... Well, they're just not in keeping with the property

0:25:16 > 0:25:18and indeed with many of the houses in the rest of the street.

0:25:18 > 0:25:22It'd be lovely to restore some sash windows here.

0:25:22 > 0:25:25That said, because this is a conservation area,

0:25:25 > 0:25:30there are many more hoops you have to jump through to get permission.

0:25:30 > 0:25:34Paying £225,000 for the property were husband-and-wife team

0:25:34 > 0:25:36Paul and Kia,

0:25:36 > 0:25:40and they were ready to jump through planning and other hoops.

0:25:40 > 0:25:43They were also planning on a top-quality finish.

0:25:43 > 0:25:48Underfloor heating in the bathroom. Perhaps the system where you can

0:25:48 > 0:25:52control all your heating and the lighting from your phone.

0:25:52 > 0:25:55They wanted new windows and intended on selling,

0:25:55 > 0:25:58but how long did they think it would take to turn this

0:25:58 > 0:26:02- into a high-spec apartment?- I reckon we're looking at about three months.

0:26:02 > 0:26:05- So, what budget are you thinking of? - Well, I suppose it depends on

0:26:05 > 0:26:11the windows situation, but for doing the rest of the flat about 20,000.

0:26:11 > 0:26:13Half the battle with renovations

0:26:13 > 0:26:16is being able to see the potential in a property,

0:26:16 > 0:26:19but, like many things, the more you do, the better you become.

0:26:19 > 0:26:23# I needed to believe in something... #

0:26:23 > 0:26:27So, with this being their first property development project,

0:26:27 > 0:26:29self-belief would be paramount.

0:26:29 > 0:26:34We were back just over six months later to see the results.

0:26:34 > 0:26:37# I needed to believe!... #

0:26:37 > 0:26:40Moving the bathroom access around the corner

0:26:40 > 0:26:42has made a huge difference to the living space.

0:26:42 > 0:26:47# I needed to believe in something I needed to believe!... #

0:26:47 > 0:26:50In the bedroom is Kia's new storage.

0:26:52 > 0:26:55In addition to the new wardrobes and carpets,

0:26:55 > 0:26:59there are new double-glazed sash windows. It's a long story.

0:26:59 > 0:27:03I'll tell you more about that when we get into the kitchen.

0:27:03 > 0:27:07It's the sort of error that tests your faith.

0:27:07 > 0:27:09# I needed to believe... #

0:27:09 > 0:27:12Kia wasn't happy with the proportions of the windows,

0:27:12 > 0:27:15so the splashback is still to be fitted.

0:27:15 > 0:27:18# I needed to believe... #

0:27:18 > 0:27:22But the good news is the glazing company is correcting the issue

0:27:22 > 0:27:24free of charge. The bathroom looks great.

0:27:29 > 0:27:32It's full of light and is able to let more flow through the rest

0:27:32 > 0:27:36of the flat thanks to some handy new additions.

0:27:39 > 0:27:43We put in those glass lights up there,

0:27:43 > 0:27:45and I think that does bring wonderful light in.

0:27:45 > 0:27:48The bedroom looks fabulously light.

0:27:48 > 0:27:52There's light coming in through that lovely window in the kitchen,

0:27:52 > 0:27:54so I'm very pleased with that.

0:27:55 > 0:27:58The work was mainly carried out by a friend's building firm,

0:27:58 > 0:28:03- but Paul did do some painting.- I repainted the whole metal staircase

0:28:03 > 0:28:07with rust-proof paint to make it a little bit more attractive,

0:28:07 > 0:28:09but apart from that,

0:28:09 > 0:28:11there's nothing much else you can do,

0:28:11 > 0:28:14because that's the only access to these flats.

0:28:14 > 0:28:18- And what was Kia's role? - I chose virtually everything,

0:28:18 > 0:28:21from the skirting boards to the sockets

0:28:21 > 0:28:26to the light switches to the door handles, and I am INCREDIBLY fussy,

0:28:26 > 0:28:29but I got my way, and I will say,

0:28:29 > 0:28:32I think sometimes it's worth spending just that little bit more.

0:28:32 > 0:28:34And Paul dealt with the builder and all the sort of technical

0:28:34 > 0:28:38kind of things that I find terribly boring.

0:28:38 > 0:28:41Did Kia help with the stripping out and painting?

0:28:41 > 0:28:44No way! My fingernails would break off.

0:28:44 > 0:28:46No, I'm joking. No, I didn't, not at all.

0:28:46 > 0:28:50I was more the person that did the shopping, basically.

0:28:50 > 0:28:52Suited me just fine.

0:28:52 > 0:28:55And Kia's favourite part of the flat?

0:28:55 > 0:28:57Probably the added storage.

0:28:57 > 0:29:00TAPED CHEERING AND APPLAUSE

0:29:00 > 0:29:02We found all sorts of little places

0:29:02 > 0:29:04where we could make this extra storage.

0:29:04 > 0:29:08It's light, it's bright. I think it's quite chic.

0:29:09 > 0:29:13Paul got his heated bathroom floor, mobile-phone-controlled heating

0:29:13 > 0:29:16and automatic low-level lights.

0:29:17 > 0:29:21Mysteriously, they switch on when movement is detected.

0:29:21 > 0:29:23All part of Paul's favourite bit.

0:29:23 > 0:29:26I think I'd be most pleased with the bathroom,

0:29:26 > 0:29:29because I think it's turned out fantastically

0:29:29 > 0:29:33and it looks really smart and very modern.

0:29:33 > 0:29:34# Chic!... #

0:29:34 > 0:29:36Apart from the wrongly proportioned windows,

0:29:36 > 0:29:40there's nothing shabby about their chic, but the question is,

0:29:40 > 0:29:44what did their chic ish' add to their 20-grand budget?

0:29:46 > 0:29:49We've obviously gone over that quite substantially,

0:29:49 > 0:29:53and the figure that I came up with last night

0:29:53 > 0:29:57was £39,073.43.

0:29:59 > 0:30:02Ach, let's call it 39 grand between friends.

0:30:02 > 0:30:06And another cost to be added will be the extension of that short lease.

0:30:06 > 0:30:11They're in negotiations but hope to agree a fee of £45,000.

0:30:11 > 0:30:16Added to the purchase price, this brings the total spend to 309 grand.

0:30:16 > 0:30:21Was it worth it? We've asked along two local estate agents to find out.

0:30:21 > 0:30:25First, let's hear from the agent who saw it last time.

0:30:25 > 0:30:28I think that the owners have done a fantastic job on doing it up.

0:30:28 > 0:30:31It's been done up to a very high finish.

0:30:31 > 0:30:34Yeah, they've obviously spent a lot of money on it.

0:30:34 > 0:30:35I actually think the layout really works.

0:30:35 > 0:30:38It's, like, decent-sized bedroom, open-plan kitchen,

0:30:38 > 0:30:42decent-sized bathroom for a property in this sort of period.

0:30:42 > 0:30:43Plenty of positives, then,

0:30:43 > 0:30:48but will their £309,000 investment bring them plus points in the profit

0:30:48 > 0:30:51- department?- If I was to put this on the property for sale as now,

0:30:51 > 0:30:55we'd be looking in the region of £375,000 to £400,000.

0:30:55 > 0:30:58If we were putting this property on the market today,

0:30:58 > 0:31:01we would be putting it on for offers in excess of £375,000.

0:31:01 > 0:31:06Well, I'm really pleased, and I think, for a first project,

0:31:06 > 0:31:09that's not a bad little return.

0:31:09 > 0:31:11And plus, we've enjoyed all of this,

0:31:11 > 0:31:14so it's almost being paid for having fun.

0:31:14 > 0:31:16Erm, so excellent news, to me.

0:31:18 > 0:31:22That top figure would also give an excellent profit

0:31:22 > 0:31:25of £91,000 before taxes and fees.

0:31:25 > 0:31:28With this first renovation a success,

0:31:28 > 0:31:30what's next for Paul and Kia?

0:31:30 > 0:31:35We've a holiday coming up, and then, once we've sold this,

0:31:35 > 0:31:38then hopefully we'll plough some of the money, some of the profit,

0:31:38 > 0:31:40back into another project.

0:31:46 > 0:31:50Sinfin lies just a few miles from Derby city centre.

0:31:51 > 0:31:55It's mentioned in the Domesday Book as the manor of a Norman lord.

0:31:56 > 0:31:57There's been less lording about

0:31:57 > 0:32:00since the end of the industrial heyday,

0:32:00 > 0:32:02but it's still a very well-mannered suburb.

0:32:03 > 0:32:06I'm not too far from Derby town centre.

0:32:06 > 0:32:08In fact, there is a bus stop just at the end of the road

0:32:08 > 0:32:11that will get you in the town centre in no time,

0:32:11 > 0:32:13so we are in a good location.

0:32:13 > 0:32:17Also, we've got all the amenities close by that you could want.

0:32:17 > 0:32:22Our property is this semidetached three-bed house with a guide price

0:32:22 > 0:32:25of 55 grand.

0:32:25 > 0:32:30A quiet road and certainly plenty of space outside, so a promising start.

0:32:35 > 0:32:40Very good. You've got a bit of hallway space here before you go

0:32:40 > 0:32:44into that sort of lounge/living area.

0:32:44 > 0:32:48Quite dark, though, with this blue wallpaper.

0:32:48 > 0:32:52And you've got double doors going out.

0:32:52 > 0:32:55Wow, have you seen the size of that garden?

0:32:55 > 0:32:57Slightly overgrown, but that can be dealt with.

0:32:57 > 0:33:01Good-sized room, good-sized lounge and living area.

0:33:01 > 0:33:03Back over this decent-sized hallway,

0:33:03 > 0:33:06you've got the stairs going up to the bedrooms.

0:33:06 > 0:33:09You have got some good storage under the stairs.

0:33:09 > 0:33:12Keep your wellies in there, your coats.

0:33:12 > 0:33:13Or your wizard.

0:33:13 > 0:33:17Your choice, of course. And in here, kitchen.

0:33:17 > 0:33:20Good-sized kitchen. Lots of space.

0:33:20 > 0:33:25Very '90s kitchen with this kind of finish in the corner.

0:33:25 > 0:33:30But...it's all got to come out. Freshen it up.

0:33:30 > 0:33:33Nice, brand-new kitchen in here. What have we got in here?

0:33:33 > 0:33:36We've got a downstairs toilet.

0:33:36 > 0:33:41Fantastic. And here, we've got more storage. So, all good down here.

0:33:41 > 0:33:43So far, I can't find any faults.

0:33:45 > 0:33:49Another plus point is it appears to have central heating.

0:33:49 > 0:33:55# Whoa, mama, it's getting warm in here!... #

0:33:55 > 0:33:59But rather than waste money on a fuel bill, I'd look to get some

0:33:59 > 0:34:04double glazing in and make sure it's really toasty and save some cash.

0:34:12 > 0:34:18Right. Upstairs, we have got three bedrooms with...

0:34:19 > 0:34:21..a family bathroom. Now, that...

0:34:23 > 0:34:26..is pretty tight, and the configuration

0:34:26 > 0:34:28is a little bit strange.

0:34:28 > 0:34:32You've got your bath here. Obviously, you can see the toilet,

0:34:32 > 0:34:36but you've got an immersion heater, sort of boiler tank there.

0:34:36 > 0:34:40I'd want to rip all this out. I'd want to put a combi boiler in here.

0:34:41 > 0:34:44Strange. Here you've got two bedrooms

0:34:44 > 0:34:46which are really small bedrooms.

0:34:46 > 0:34:51You'd possibly get a double, maybe squeeze a double in there,

0:34:51 > 0:34:53but a single would be more apt.

0:34:53 > 0:34:59And then into your main bedroom here, again, which is not huge,

0:34:59 > 0:35:02but you'd get a double bed in here, no problem at all.

0:35:02 > 0:35:05Bigger of the three bedrooms. Ceilings aren't a bad height.

0:35:05 > 0:35:08You've got your dual-aspect windows, as well.

0:35:08 > 0:35:12But I just don't know where all that space from downstairs has gone,

0:35:12 > 0:35:14because it's not up here.

0:35:14 > 0:35:18# Where'd it go? I don't know... #

0:35:20 > 0:35:24You really do miss the spacious layout downstairs.

0:35:24 > 0:35:26Up here, it seems all the floor space

0:35:26 > 0:35:28has been eaten up by bad design

0:35:28 > 0:35:32and water tanks big enough to host an aquarium.

0:35:32 > 0:35:34How could we solve this?

0:35:34 > 0:35:37Look outside, and don't miss the potential with this property.

0:35:39 > 0:35:44Have a look at this. All this off-street parking is a thumbs up,

0:35:44 > 0:35:51and you've got all that space there for, potentially, an extension.

0:35:51 > 0:35:53That's very good.

0:35:56 > 0:36:00A two-storey on the side might give you a couple of extra bedrooms,

0:36:00 > 0:36:02and the back garden wouldn't be affected.

0:36:02 > 0:36:05It's a brilliant size for a family house.

0:36:06 > 0:36:08And while the extension may look attractive,

0:36:08 > 0:36:10the numbers need to stack up,

0:36:10 > 0:36:13so we called in a local property expert to ask if this house,

0:36:13 > 0:36:17guided at £55,000, would work if it was extended.

0:36:20 > 0:36:23It's a good, solid house. The garden plot is much bigger than

0:36:23 > 0:36:25I thought, which does offer potential.

0:36:25 > 0:36:28In my opinion, this isn't the right property to extend.

0:36:28 > 0:36:31Generally, houses around here aren't extended, because there is

0:36:31 > 0:36:34a ceiling price for the area. If there's space to build on the side,

0:36:34 > 0:36:36whether there's a potential to build another home or not

0:36:36 > 0:36:39could be looked into. That would be quite lucrative.

0:36:39 > 0:36:43But extending this property might be a bit risky.

0:36:43 > 0:36:44Something to bear in mind.

0:36:44 > 0:36:49You might be able to extend a house, but you can't change its location.

0:36:49 > 0:36:52What course of action would the agent suggest

0:36:52 > 0:36:53and what price could it attract?

0:36:55 > 0:36:56If it was my property,

0:36:56 > 0:36:59I would renovate it and resell it, move on to the next project.

0:36:59 > 0:37:02There is a healthy demand for rentals in the area, as well,

0:37:02 > 0:37:03so there's always that to fall back on.

0:37:03 > 0:37:06On completion, I would expect a rent on this property

0:37:06 > 0:37:09of around £575 per calendar month.

0:37:09 > 0:37:11On the sales market, once completed,

0:37:11 > 0:37:17I would expect this property to achieve potentially £110,000.

0:37:17 > 0:37:19If it was extended and two bedrooms were added,

0:37:19 > 0:37:24the agent thinks it could sell for £125,000,

0:37:24 > 0:37:26so extending for investment...

0:37:26 > 0:37:29..nah. But if you wanted to live here long-term,

0:37:29 > 0:37:31it would make a lovely family home.

0:37:34 > 0:37:38This is one of those projects that can be as big or as small as you

0:37:38 > 0:37:41want it to be. This house could get turned around relatively quickly.

0:37:41 > 0:37:45You could get it on the rental market or the sales market ASAP.

0:37:45 > 0:37:47Or you can go for the bigger picture

0:37:47 > 0:37:49and get the extension put on the side.

0:37:49 > 0:37:52Let's find out who was attracted by that potential

0:37:52 > 0:37:54when it went under the hammer.

0:37:55 > 0:37:58If you missed the last lot, this one's just as good.

0:37:58 > 0:38:00Guide price today is £55,000.

0:38:00 > 0:38:04Who will start the bidding at £55,000, do I see?

0:38:04 > 0:38:07At £55,000, I'm away. 56 now, thank you.

0:38:07 > 0:38:1057. 58. 59. 60 now.

0:38:10 > 0:38:1261. 62.

0:38:12 > 0:38:18The bidding is locked between two parties going in increments of £500.

0:38:19 > 0:38:23We rejoin the bidding at £83,500.

0:38:23 > 0:38:26At £83,500.

0:38:26 > 0:38:31Gentleman's bid, seated on the aisle, at 83,500 I shall sell.

0:38:31 > 0:38:34At 83,500 for the first time.

0:38:35 > 0:38:39At 83,500 for the second time.

0:38:40 > 0:38:4384. And a half.

0:38:43 > 0:38:4485. And a half.

0:38:44 > 0:38:4686. And a half.

0:38:46 > 0:38:49At £86,000, back with you, sir, seated.

0:38:49 > 0:38:52At £86,000, with you, seated on the aisle, then, at the back,

0:38:52 > 0:38:56for the first time. At £86,000 for the second time.

0:38:56 > 0:38:59You're sure and done at £86,000. Fair warning. Hammer's up, it goes

0:38:59 > 0:39:01third and final time.

0:39:01 > 0:39:05Sold, it's yours, sir. Paddle number 940 at £86,000.

0:39:05 > 0:39:07Well fought, and thank you.

0:39:07 > 0:39:09Fighting off all comers was Kumar,

0:39:09 > 0:39:13who bought his first investment property for 86 grand,

0:39:13 > 0:39:14and well bought, I think.

0:39:16 > 0:39:19Were his plans for this place big or small?

0:39:22 > 0:39:24- Kumar, nice to meet you.- Nice to meet you.- Congratulations.

0:39:24 > 0:39:28- Thank you. Why this house? - This was a good-sized plot,

0:39:28 > 0:39:30and the house was in a fairly...

0:39:30 > 0:39:33I didn't want a big project kind of thing,

0:39:33 > 0:39:35so it's just a minor refurbishment.

0:39:35 > 0:39:37And this is your first adventure, isn't it?

0:39:37 > 0:39:40- Yeah.- It's quite a big place, isn't it,

0:39:40 > 0:39:42- to start off with? - The plot size is good.

0:39:42 > 0:39:46That's why I thought it would give me a lot of options to play around.

0:39:46 > 0:39:49- OK.- I'll vary how much work I can do or can't do.

0:39:49 > 0:39:52OK. So, what do you do now? What's your day job now?

0:39:52 > 0:39:55- Erm, I'm an IT consultant. - Oh, I see!- Yeah.

0:39:55 > 0:39:57One of those very clever people.

0:39:57 > 0:40:00It doesn't surprise me at all.

0:40:00 > 0:40:03- Not really.- So, what were your thoughts when you bought it?

0:40:03 > 0:40:07Were you thinking, "I could buy that to sell it, buy it to rent it,

0:40:07 > 0:40:09"I might buy it to live in"? What was your thought?

0:40:09 > 0:40:11Initially, it was buy to sell...

0:40:11 > 0:40:16I'll decide after the refurbishment takes place what price and stuff.

0:40:16 > 0:40:19So, now you've been and you've had a look around.

0:40:19 > 0:40:21What are your thoughts now you've had a proper look?

0:40:21 > 0:40:24I'm just going to do a minor refurbishment at this point.

0:40:24 > 0:40:27New kitchen, bathrooms, floorings and whatnot.

0:40:27 > 0:40:30So, what about layout changes, then? Are you going to change it at all?

0:40:30 > 0:40:32It's quite a... It's deceiving.

0:40:32 > 0:40:34Down here's quite big, upstairs is quite small.

0:40:34 > 0:40:36A couple of bedrooms are smaller, so...

0:40:36 > 0:40:39There is a little bit of space in the bathroom if I get

0:40:39 > 0:40:42a combi boiler in. It might give a little bit of space.

0:40:42 > 0:40:44- Gotcha.- But I think it will be good

0:40:44 > 0:40:47if we can get a double-storey extension.

0:40:47 > 0:40:49Is that something you want to do, or...?

0:40:49 > 0:40:52Yeah. It totally depends on economics,

0:40:52 > 0:40:54so I'm going to have to speak to an architect

0:40:54 > 0:40:56to see what the options are.

0:40:56 > 0:41:00- OK.- Ideally, I would like to have a wraparound extension

0:41:00 > 0:41:02with a double storey on the side.

0:41:02 > 0:41:07- Nice.- But again, economics and planning permission, obviously.

0:41:07 > 0:41:10- Yes. - That's going to dictate that.

0:41:10 > 0:41:14# I keep thinking 'bout a new thing... #

0:41:14 > 0:41:17For his new career, Kumar has the right idea -

0:41:17 > 0:41:21do the existing place up and then see if the time and price is right

0:41:21 > 0:41:23for an extension on the side.

0:41:25 > 0:41:30# I keep thinking 'bout a new thing... #

0:41:30 > 0:41:31But for his new venture,

0:41:31 > 0:41:34he really couldn't have picked a property any further away.

0:41:36 > 0:41:39- You're not from Derby, you're from London.- That's right.

0:41:39 > 0:41:42How's that going to work, going backwards and forwards up and down

0:41:42 > 0:41:47- the motorway?- I'm going to take a couple of weeks' holiday and do the

0:41:47 > 0:41:51- bits I can...- Uh-huh.- ..and then project-manage it from there.

0:41:51 > 0:41:54You know, in terms of the professional trades,

0:41:54 > 0:41:57getting them in and just coordinating them remotely,

0:41:57 > 0:41:58and take it from there.

0:41:58 > 0:42:00Careful with the pennies.

0:42:00 > 0:42:03Be careful with the pennies and the pounds will look after themselves.

0:42:03 > 0:42:06- What is your budget? - At this point, £10,000.

0:42:06 > 0:42:10- £10,000?- Yep.- I'm taking a guess - that's without an extension.

0:42:10 > 0:42:12That's without the extension, yes.

0:42:12 > 0:42:16A ten-grand budget. How long is it going to take to do?

0:42:16 > 0:42:18I'm hoping three months.

0:42:18 > 0:42:21Now, do you roll your sleeves up and do you get involved?

0:42:21 > 0:42:26- I can do decoration!- OK!- Decoration, stripping wallpaper, painting,

0:42:26 > 0:42:30you know, that sort of thing. Plumbing and electrics and stuff,

0:42:30 > 0:42:33I'm going to have to get the tradespeople in.

0:42:33 > 0:42:37Leave it to the pros. Electric, gas, plumbing, all that stuff,

0:42:37 > 0:42:38- leave it to the pros.- Yeah.

0:42:38 > 0:42:42Whatever happens, I hope it all works out. I hope it's a success.

0:42:42 > 0:42:45- Thank you.- Your first foray into the property-developing world.

0:42:45 > 0:42:47- Thank you.- Good man. - Thank you. Thanks.

0:42:48 > 0:42:51What a really nice bloke Kumar is, and he's decided to

0:42:51 > 0:42:54take his first steps on the property-developing ladder.

0:42:54 > 0:42:56But what's going to happen here?

0:42:56 > 0:42:57Is it going to be as-is?

0:42:57 > 0:43:01Is it going to be a single-storey or double-storey wraparound extension?

0:43:01 > 0:43:04I'm pretty much like Kumar - I don't know how this is going to end up.

0:43:04 > 0:43:07What I do know is that if I take three weeks off work,

0:43:07 > 0:43:09I'm going on holiday. Anyway,

0:43:09 > 0:43:12you can find out what Kumar ends up with later in the programme.

0:43:16 > 0:43:19Well, earlier we saw how one of our property buyers got on.

0:43:19 > 0:43:22How about the other two? Will they have hurdles to jump over?

0:43:22 > 0:43:24Will it be a smooth race to the finish

0:43:24 > 0:43:27or will there be many obstacles along the way?

0:43:27 > 0:43:30Let's wait no longer and find out how they got on.

0:43:31 > 0:43:34It's time for a trip back to Cumbria,

0:43:34 > 0:43:38where I saw a three-bed bungalow guided at £45,000-plus,

0:43:38 > 0:43:41which seemed like a lot of house for the money,

0:43:41 > 0:43:43so something must have been amiss.

0:43:47 > 0:43:49# What's wrong with you?... #

0:43:50 > 0:43:52Ah.

0:44:01 > 0:44:03Oh, dear.

0:44:03 > 0:44:07As I suspected, things weren't all they were cracked up to be.

0:44:07 > 0:44:10My concern was that the bungalow would, at the very least,

0:44:10 > 0:44:13need underpinning. But the auctioneer who sold it

0:44:13 > 0:44:18thought the worst-case scenario would need to be considered, too.

0:44:18 > 0:44:21# Listen to what I say... #

0:44:21 > 0:44:25It could be that the property might be better to be...

0:44:25 > 0:44:29- ..floored and rebuilt.- Even these problems didn't put everyone off,

0:44:29 > 0:44:33and it sold at auction for £62,000.

0:44:35 > 0:44:38Local electrician Lee bought it for himself,

0:44:38 > 0:44:42girlfriend Paula and two-year-old daughter Keeva to live in.

0:44:42 > 0:44:44He'd viewed the property before purchasing

0:44:44 > 0:44:48and assumed the cracks were caused by the weight of the chimney breast,

0:44:48 > 0:44:50although he had started the renovation works

0:44:50 > 0:44:54and found out that he'd got more than he bargained for.

0:44:54 > 0:44:57What have you noticed

0:44:57 > 0:45:01- since you've been here more? - Just more cracks.

0:45:01 > 0:45:05Bigger cracks. Yeah, there's a lot more cracks than I thought.

0:45:05 > 0:45:09- Right. And what do you think about that?- Erm, not a lot.

0:45:09 > 0:45:13We've just got to wait and see or get somebody to have a look at it

0:45:13 > 0:45:14and deal with that when we come to it.

0:45:14 > 0:45:18He was wisely going to get a structural engineer to assess

0:45:18 > 0:45:22what work needed to be done. Also, subject to planning,

0:45:22 > 0:45:25he wanted to extend the property either up or to the side.

0:45:25 > 0:45:29He did have a healthy budget of £70,000 and hoped to have moved

0:45:29 > 0:45:32into the house within 12 months.

0:45:34 > 0:45:36So, it's time to head back to see just what happened.

0:45:36 > 0:45:41But we won't be heading back a year later or even two or three.

0:45:41 > 0:45:46It's been just a month shy of four years since we were here.

0:45:46 > 0:45:50Fingers crossed the house is now complete.

0:45:50 > 0:45:53# Don't you let it bring you down

0:45:55 > 0:45:58# Don't you let it bring you down

0:46:00 > 0:46:05# Try to see that people change each morning

0:46:05 > 0:46:10# Look the other way, a brand-new dawning

0:46:10 > 0:46:13# Don't you let it bring you down... #

0:46:14 > 0:46:16Yes, it's fair to say that things

0:46:16 > 0:46:18haven't exactly gone to plan for Lee.

0:46:18 > 0:46:21But he didn't let those cracks get him down.

0:46:23 > 0:46:27People thought that the chimney might have been the cause for

0:46:27 > 0:46:31the cracks, because the foundations weren't very good

0:46:31 > 0:46:34and that probably pulled it over and caused the cracks.

0:46:34 > 0:46:36But I don't know, I didn't look into it.

0:46:36 > 0:46:38I wasn't interested. I just thought...

0:46:38 > 0:46:41We decided to build a house for ourselves, so we knocked it down...

0:46:42 > 0:46:46..got plans passed to build a three-bedroom dormer bungalow

0:46:46 > 0:46:51with a garage, and then had a change of heart and moved somewhere else.

0:46:51 > 0:46:56We bought a house elsewhere that was all ready just to move into,

0:46:56 > 0:46:59and it was similar to what we were going to build here,

0:46:59 > 0:47:03so we just saved the hassle, buy the house, sell this,

0:47:03 > 0:47:06let somebody else have the fun.

0:47:06 > 0:47:10Someone may well have a great time building a property here,

0:47:10 > 0:47:12but Lee made sure he got some pleasure

0:47:12 > 0:47:14from demolishing the bungalow.

0:47:14 > 0:47:18I just went and got a hammer, took the internal walls down,

0:47:18 > 0:47:21took the roof off with a chainsaw one day.

0:47:21 > 0:47:24We loaded it all up into skips and it just went.

0:47:24 > 0:47:25And that was the end of that.

0:47:25 > 0:47:30It was a good way of getting rid of some aggression, just...

0:47:30 > 0:47:32..take it out on the house, get rid of it.

0:47:32 > 0:47:35Demolishing a house normally falls under permitted development,

0:47:35 > 0:47:38but you have to give the local authority's building control

0:47:38 > 0:47:42six weeks' prior notice before demolition begins,

0:47:42 > 0:47:44as they may have special conditions

0:47:44 > 0:47:48to protect neighbouring properties and of course the public.

0:47:48 > 0:47:51And don't assume planning for another property in its place will

0:47:51 > 0:47:54be easily granted. The local council will need to be assured

0:47:54 > 0:47:57the ground you're building on is fit for purpose.

0:47:57 > 0:48:01We had to do a desktop study to decide what kind of membrane to put

0:48:01 > 0:48:03under the house before you build it.

0:48:03 > 0:48:06It tells you the condition of the ground you're building on.

0:48:06 > 0:48:08And the ground was OK, everything was OK

0:48:08 > 0:48:11just to build as a normal house.

0:48:11 > 0:48:12Aside from the cost of skips

0:48:12 > 0:48:15and the planning applications for the bungalow,

0:48:15 > 0:48:19it hasn't cost Lee anywhere near as much as his £70,000 budget

0:48:19 > 0:48:24for the build. But it has taken almost four years to get to the end

0:48:24 > 0:48:27of his project. So, any regrets?

0:48:27 > 0:48:30I don't really regret it as such,

0:48:30 > 0:48:33but obviously it would have been better if I hadn't bought it, but...

0:48:34 > 0:48:36..you live and learn, don't you?

0:48:36 > 0:48:38# But I lived and I learned

0:48:40 > 0:48:44# Yes, I lived and I learned... #

0:48:47 > 0:48:51It's time for us to learn what two local estate agents think of this

0:48:51 > 0:48:54former bungalow which is now a building plot.

0:48:55 > 0:48:57I think demolishing the property

0:48:57 > 0:49:00and starting again was the right decision, given the state it was in.

0:49:00 > 0:49:02The main selling point of a property in this location,

0:49:02 > 0:49:04it's a good village, nice little village,

0:49:04 > 0:49:06and this is a good-sized plot.

0:49:06 > 0:49:09The best course of action with the land would be to build a three-bed

0:49:09 > 0:49:12dormer bungalow now that the existing bungalow has gone,

0:49:12 > 0:49:16and it will keep it in design with the existing properties.

0:49:17 > 0:49:19Lee purchased this for 62,000,

0:49:19 > 0:49:22but that of course was when it was a bungalow,

0:49:22 > 0:49:25so has he made the right move financially by going down the route

0:49:25 > 0:49:28of demolishing it and having outline plans drawn up?

0:49:29 > 0:49:32With planning permission, you're looking maybe around kind of

0:49:32 > 0:49:34£70,000, £75,000.

0:49:34 > 0:49:36With planning permission on this plot

0:49:36 > 0:49:38for a three-bedroom dormer bungalow,

0:49:38 > 0:49:40I think it will be around £80,000.

0:49:40 > 0:49:43Lee actually already agreed to sell the property on

0:49:43 > 0:49:45but didn't advertise it with planning permission,

0:49:45 > 0:49:48as a new buyer contacted him first

0:49:48 > 0:49:50and Lee was keen on a quick, simple sale.

0:49:53 > 0:49:55Yeah, I probably could've got more for the place

0:49:55 > 0:49:58with the planning permission, but I was offered what I paid,

0:49:58 > 0:50:02so I just gave up and sold it, and that was it.

0:50:02 > 0:50:04So basically I haven't made anything on it.

0:50:04 > 0:50:08I've just broke even, less what I paid for the planning permission.

0:50:08 > 0:50:11Well, it's maybe not been a completely painless project,

0:50:11 > 0:50:15but at least Lee and his family are happy in their new home

0:50:15 > 0:50:18and he can take lessons learnt from this project forward.

0:50:19 > 0:50:24To sum up this experience, it's just been a bit of a learning curve,

0:50:24 > 0:50:26and we just made it up as we went along.

0:50:26 > 0:50:29I didn't ask for anyone else's advice or anything like that.

0:50:29 > 0:50:32We just went with it, and it was all right the way it come out,

0:50:32 > 0:50:34it hasn't hurt.

0:50:34 > 0:50:37# But I lived and I learn

0:50:38 > 0:50:42# Yes, I lived and I learned... #

0:50:55 > 0:50:57MUSIC: In The Mood

0:50:57 > 0:51:02Back now to Sinfin, a suburb of Derby, where I saw this end terrace.

0:51:02 > 0:51:05The estates round here were mainly built post-war,

0:51:05 > 0:51:09and this one's decor was certainly rooted in the past.

0:51:09 > 0:51:15Right, upstairs, we have got three bedrooms with a family bathroom.

0:51:15 > 0:51:19Now, that is pretty tight,

0:51:19 > 0:51:24and you've got an immersion heater, sort of boiler tank there.

0:51:24 > 0:51:27I'd want to rip all this out, I'd want to put a combi boiler in here.

0:51:29 > 0:51:33The house was bought by IT consultant Kumar for 86 grand,

0:51:33 > 0:51:36and it was his first time developing -

0:51:36 > 0:51:41his plan, possibly build a wraparound extension and sell on,

0:51:41 > 0:51:43economics permitting.

0:51:44 > 0:51:47- What is your budget? - At this point £10,000.

0:51:47 > 0:51:49I'm taking a guess, that's without an extension.

0:51:49 > 0:51:51That's without the extension, yes.

0:51:51 > 0:51:55Now, do you roll your sleeves up and do you get involved?

0:51:55 > 0:51:57- I can do decoration!- OK!

0:51:57 > 0:52:00I think that sort of thing. Plumbing and electrics and stuff,

0:52:00 > 0:52:03I'm going to have to get tradespeople in.

0:52:03 > 0:52:06Leave it to the pros. Electric, gas, plumbing,

0:52:06 > 0:52:09- all that stuff, leave it to the pros.- Right, yeah.

0:52:09 > 0:52:13We are back four months and eight days later to see the developments,

0:52:13 > 0:52:15starting in the dark pine kitchen

0:52:15 > 0:52:18whose U-shaped design occupied most of the room.

0:52:20 > 0:52:23Now the units have been moved to one of the walls.

0:52:23 > 0:52:26There's room for a small table or breakfast bar in the corner.

0:52:28 > 0:52:31Modern, brighter units and appliances lift the kitchen.

0:52:34 > 0:52:37Across the hallway, the old lounge gas fire and back boiler

0:52:37 > 0:52:40have given way to a modern laminate flooring

0:52:40 > 0:52:42which, apart from the bathroom,

0:52:42 > 0:52:45runs throughout the house.

0:52:45 > 0:52:47There's a much brighter colour palette

0:52:47 > 0:52:51and some feature heating components.

0:52:51 > 0:52:54Kumar sourced paint with light-reflecting particles

0:52:54 > 0:52:57to illuminate the rooms more,

0:52:57 > 0:53:00a bright choice considering he's renovating.

0:53:00 > 0:53:04# For the first time

0:53:05 > 0:53:09# Yeah, for the first time... #

0:53:09 > 0:53:11The house has been double-glazed throughout,

0:53:11 > 0:53:14making a lighter double-aspect master bedroom.

0:53:16 > 0:53:19The smaller bedroom's still quite tight, even for a single.

0:53:24 > 0:53:27The second bedroom, adjacent to the bathroom, is still being decorated.

0:53:31 > 0:53:35Kumar has inventively increased its size and had a combi boiler fitted

0:53:35 > 0:53:38in the cupboard next to the old back door,

0:53:38 > 0:53:42removing the need for the hot-water cylinder and loft header tank,

0:53:42 > 0:53:44a big plumbing job.

0:53:46 > 0:53:49# Oh, these times are hard... #

0:53:51 > 0:53:55The bathroom's still bijou, but I'll let Kumar explain.

0:53:56 > 0:53:58Basically, the stud wall was...

0:54:00 > 0:54:03..around about here, making this bedroom quite small.

0:54:03 > 0:54:06It was hardly a single or even less,

0:54:06 > 0:54:11so what we did was reconfigure the bathroom so that the stud wall

0:54:11 > 0:54:13can be moved a little bit further down -

0:54:13 > 0:54:17it gave more space to the bedroom - and then reconfigured the bathroom.

0:54:17 > 0:54:21Although the bathroom is small, Kumar has made the best of it,

0:54:21 > 0:54:25using his IT background to find a good deal.

0:54:25 > 0:54:28That was brand-new, but this time I went for a website

0:54:28 > 0:54:33which auctions off end-of-line designer toilets and stuff,

0:54:33 > 0:54:37so you get designer-style toilets for normal prices.

0:54:39 > 0:54:41After researching the ceiling price in the area,

0:54:41 > 0:54:44Kumar shelved the plans for a wraparound extension,

0:54:44 > 0:54:47but he did get help finishing the property.

0:54:48 > 0:54:53Yeah, basically, it's thanks to my dad and wife, who really helped me,

0:54:53 > 0:54:56and my daughter, as well!

0:54:56 > 0:54:59She was doing some of the wall painting, door painting as well,

0:54:59 > 0:55:02a little bit. And tea making!

0:55:04 > 0:55:08It's nice to hear that nine-year-old Abby was helping out.

0:55:08 > 0:55:12But what were the other family relationships like

0:55:12 > 0:55:14after working together?

0:55:14 > 0:55:18Yeah, we had difference of opinions, arguments and whatnot,

0:55:18 > 0:55:23but it was all in the end OK. Nothing major.

0:55:23 > 0:55:26Commuting from south London must have been taxing,

0:55:26 > 0:55:28but what was the biggest difficulty?

0:55:28 > 0:55:32Getting the trades and scheduling was a bit of an issue,

0:55:32 > 0:55:35because these people are so busy.

0:55:35 > 0:55:38So they were the two main hardships, if you like,

0:55:38 > 0:55:41but in the bigger scheme of things, nothing,

0:55:41 > 0:55:45and no nasty surprises was there. So it was OK in that regard.

0:55:45 > 0:55:49- How did the budget fare? - Originally, I wanted to spend

0:55:49 > 0:55:52£10,000, but I ended up spending £13,000.

0:55:52 > 0:55:59It was mainly for bits and pieces here and there for handyman stuff.

0:55:59 > 0:56:01Originally, the schedule of works was three months,

0:56:01 > 0:56:05but it's still not completely finished after four months.

0:56:05 > 0:56:08We think it's going to take about five months -

0:56:08 > 0:56:09one more month to finish it.

0:56:11 > 0:56:15We called on two local estate agents to give us their knowledge on this

0:56:15 > 0:56:21property. Was Kumar wise to buy at £86,000 and spend another £13,000

0:56:21 > 0:56:24on refurbishing it? Will there be enough opportunity for him

0:56:24 > 0:56:26to sell on? First up,

0:56:26 > 0:56:28the agent who viewed it before work commenced.

0:56:28 > 0:56:31My first impression, having seen this property before, is that he's

0:56:31 > 0:56:34done a lot of things in regards to replacing the essential things that

0:56:34 > 0:56:36need doing with regards to the boiler, the bathroom,

0:56:36 > 0:56:38the kitchen, but he hasn't gone overboard

0:56:38 > 0:56:40by trying to overcomplicate it.

0:56:40 > 0:56:42The standard of finish, for me,

0:56:42 > 0:56:45really is more suited to the rental market.

0:56:45 > 0:56:48I think for resale, then we should have

0:56:48 > 0:56:50done a little bit more work to the property.

0:56:50 > 0:56:54Kumar's total spend is £99,000 to date.

0:56:54 > 0:56:57And what's the value likely to be after completion?

0:56:57 > 0:56:59Once the property's finished,

0:56:59 > 0:57:03I would anticipate a marketing price in the region of £110,000.

0:57:03 > 0:57:05If we were to put this on to the open market today,

0:57:05 > 0:57:09we would look at an asking price of £110,000.

0:57:09 > 0:57:10It is no surprise, yeah.

0:57:10 > 0:57:13That's something where I was expecting, as well.

0:57:13 > 0:57:15And what could he get renting?

0:57:15 > 0:57:18Once completed, I would offer this property for rent

0:57:18 > 0:57:20in the region of £550 per calendar month.

0:57:20 > 0:57:23So, if we were to put this property on the market for rent,

0:57:23 > 0:57:27we would be looking at £550 to £600 per calendar month.

0:57:27 > 0:57:34550 is my expectation, as well, on the rental side. Yeah.

0:57:36 > 0:57:40Taking the £600 per calendar month optimistic valuation

0:57:40 > 0:57:43would give Kumar just over a 7% yield.

0:57:43 > 0:57:47So what's it to be, short-term profit or long-term return?

0:57:48 > 0:57:50Personally, for me,

0:57:50 > 0:57:53I'm going to keep this as a long-term investment

0:57:53 > 0:57:55by renting it out.

0:57:55 > 0:57:59The first, then, for the portfolio, and for future purchase plans...?

0:57:59 > 0:58:03It's a 300-mile round trip every time I need to come to the house,

0:58:03 > 0:58:07so I would prefer something much closer.

0:58:10 > 0:58:12We meet property buyers from all over the country,

0:58:12 > 0:58:15and they've all got their own individual stories to tell.

0:58:15 > 0:58:18Yes, and those stories keep us absolutely gripped.

0:58:18 > 0:58:20And there are plenty more to enjoy,

0:58:20 > 0:58:24so join us next time on Homes Under The Hammer for more auction action.

0:58:24 > 0:58:26- Bye-bye.- Bye-bye.- Goodbye.