0:00:02 > 0:00:05Hello, welcome to the show. Property auctions are pretty exciting.
0:00:05 > 0:00:08When the bidding starts, it can get very tense, and even dramatic.
0:00:08 > 0:00:12Yes, you can sometimes cut the atmosphere with a knife.
0:00:12 > 0:00:15If you are the last bidder standing when the hammer falls,
0:00:15 > 0:00:16the property's yours.
0:00:42 > 0:00:46People who buy regularly at auction know all the tricks of the trade.
0:00:46 > 0:00:50Do your research, view the property and, please, read the legal pack.
0:00:50 > 0:00:55Yes, so did today's buyers stick to our golden rules and do things by the book?
0:00:55 > 0:00:56Well, here's what they bought.
0:00:58 > 0:01:00It's back to school today.
0:01:00 > 0:01:04In Hertfordshire, Lucy is on a plot of land, brushing up on her geometry.
0:01:04 > 0:01:07It's OK, roughly triangular in shape.
0:01:08 > 0:01:10I'm up north in Scotland.
0:01:10 > 0:01:12At this two-bed flat in Motherwell,
0:01:12 > 0:01:16I suggest something a young me hated in school.
0:01:16 > 0:01:17Let's do some sums.
0:01:18 > 0:01:19We've had geometry and maths,
0:01:19 > 0:01:23now it is science in this two-bed Derbyshire terrace.
0:01:24 > 0:01:27You know, you don't have to be a rocket scientist to figure out that
0:01:27 > 0:01:28that's not right, is it?
0:01:30 > 0:01:33All these properties have been sold at auction and we'll find out who
0:01:33 > 0:01:36bought them and what they paid when they went under the hammer.
0:01:36 > 0:01:37The hammer is going...
0:01:41 > 0:01:44Lucy is in the Hertfordshire town of Stevenage.
0:01:44 > 0:01:50It was the first of eight new towns designated in 1946.
0:01:50 > 0:01:54It has good road connections and is only just around 30 miles north of
0:01:54 > 0:01:59central London, so you can bet it wouldn't take long for Stevenage native
0:01:59 > 0:02:02Formula 1 star Lewis Hamilton to get there.
0:02:03 > 0:02:07Well, I'm here in this residential part of Stevenage to see, well,
0:02:07 > 0:02:11not a standard house, but this row of garages.
0:02:11 > 0:02:15But it could also be a potential building plot.
0:02:15 > 0:02:19It went to auction with a guide price of £79,000.
0:02:19 > 0:02:21Here they are. Take a look.
0:02:30 > 0:02:31OK, I'm looking, Lucy.
0:02:31 > 0:02:33There's not much to see.
0:02:33 > 0:02:36The question is, does it have shedloads of potential?
0:02:38 > 0:02:42At the moment, as you can see, the plot has garages in a long row,
0:02:42 > 0:02:45just sitting here. It was used for parking for the local area.
0:02:45 > 0:02:48As building plots go, well, it's OK.
0:02:48 > 0:02:50Roughly triangular in shape,
0:02:50 > 0:02:55it's flat and is already has established vehicle access to the road,
0:02:55 > 0:02:56of course, due to the garages.
0:02:56 > 0:03:01But the best thing about this plot is that it already has outline planning
0:03:01 > 0:03:07permission to knock all this down and build one three-bedroom detached house here.
0:03:07 > 0:03:09Now we're talking!
0:03:15 > 0:03:16But be warned,
0:03:16 > 0:03:21outline planning permission does not mean you can start work straightaway.
0:03:21 > 0:03:25It basically just establishes whether the proposed development,
0:03:25 > 0:03:27in this case, a three-bed house,
0:03:27 > 0:03:30will be acceptable to the local planning authority.
0:03:30 > 0:03:32Before you can build anything at all,
0:03:32 > 0:03:37you have to put forward another application, covering all the details,
0:03:37 > 0:03:43such as layout, access, scale and appearance, and landscaping as well.
0:03:43 > 0:03:47Only when all that is approved can you start to build.
0:03:47 > 0:03:49In other words, whatever you decide to do here,
0:03:49 > 0:03:52it's probably not going to be a quick turnaround.
0:03:52 > 0:03:55But at the end of it, you could have a fantastic family home.
0:04:09 > 0:04:11But let's get an expert opinion.
0:04:11 > 0:04:14We invited along a local estate agent to tell us about
0:04:14 > 0:04:18the surrounding area and the possibilities for this land.
0:04:19 > 0:04:24We are about two miles out of the town centre.
0:04:24 > 0:04:27It's majority housed by terraced properties, two- and three-bed.
0:04:27 > 0:04:30A lot of people within this area like to stay in this area because it's
0:04:30 > 0:04:33got that really good community feel.
0:04:33 > 0:04:37Good local schools, great sporting facilities in Stevenage as well.
0:04:37 > 0:04:40So, what does he think of the outline planning granted for a three-bed
0:04:40 > 0:04:41detached house?
0:04:43 > 0:04:47Personally, I would be looking to do a semi, two- or maybe three-bed.
0:04:47 > 0:04:50In Stevenage at the moment, what we are experiencing is
0:04:50 > 0:04:52two-bed properties are of a premium and they
0:04:52 > 0:04:54achieve quite good value.
0:04:54 > 0:04:55Also, three-bed properties do,
0:04:55 > 0:05:00but I probably would have gone down the line of two two-bed semis.
0:05:00 > 0:05:03So, it would be a question of weighing up the time and money spent to
0:05:03 > 0:05:06reapply to change that outline permission,
0:05:06 > 0:05:11versus any increase in profit from two smaller semis instead of one big house.
0:05:11 > 0:05:13So, what do the numbers tell us?
0:05:13 > 0:05:17A three-bed detached house in this area would be worth between £290,000
0:05:17 > 0:05:19and £300,000.
0:05:19 > 0:05:21Bearing in mind that guide price of £79,000,
0:05:21 > 0:05:25and build costs of, say, £100,000, that's still a good number.
0:05:25 > 0:05:28But what about the agent's preferred two-bed semis?
0:05:30 > 0:05:33A two-bedroom semidetached property in this area would be worth between
0:05:33 > 0:05:36£210,000 and £220,000.
0:05:36 > 0:05:37Well, the fact is,
0:05:37 > 0:05:41this row of garages is destined to be knocked down and a house will be
0:05:41 > 0:05:45built here. But as there's only outline planning permission in place,
0:05:45 > 0:05:49there's still quite a few planning hoops to jump through first before you
0:05:49 > 0:05:50can start building.
0:05:50 > 0:05:53So, who was willing to take on the challenge?
0:05:53 > 0:05:58Let's head to auction and find out who did buy this plot.
0:06:00 > 0:06:03Lot 22 is the land at Stevenage.
0:06:03 > 0:06:04Pretty old site, this,
0:06:04 > 0:06:07with planning permission for a three-bedroom detached house.
0:06:07 > 0:06:09Shall we say 100 for it?
0:06:09 > 0:06:1195, then?
0:06:11 > 0:06:1395, 96 is from you.
0:06:13 > 0:06:1597, 98?
0:06:15 > 0:06:1898 behind you, 99.
0:06:18 > 0:06:24100. 101, 102, 103. 104, 105.
0:06:24 > 0:06:28Sure? Straight ahead of me, then, at £104,000.
0:06:28 > 0:06:29Are you all done with it? 105?
0:06:29 > 0:06:32No, you're not. 106. 107.
0:06:32 > 0:06:35108? Are you sure?
0:06:35 > 0:06:38Here, then, at £107,000 now.
0:06:38 > 0:06:40108 anywhere else, before it goes?
0:06:40 > 0:06:49At £107,000 for the first, 107 for the second, third and final time...
0:06:49 > 0:06:51Your land, sir, at £107,000.
0:06:55 > 0:06:57Hidden from our camera was bidder Malcolm,
0:06:57 > 0:06:59and we won't be seeing him here, either,
0:06:59 > 0:07:05because he sent wife Felicity and daughter Zoe along to tell us about the family project.
0:07:05 > 0:07:10They paid £107,000 for the site, and Lucy met them to find out more.
0:07:12 > 0:07:14Felicity and Zoe, congratulations.
0:07:14 > 0:07:16Now, you weren't at the auction, were you, girls?
0:07:16 > 0:07:19- No.- Who was at the auction?
0:07:19 > 0:07:21My husband, Zoe's father.
0:07:21 > 0:07:25We've been looking at properties for over a year at auctions.
0:07:25 > 0:07:28I'd gone with him to a number of auctions, so we hadn't been successful.
0:07:28 > 0:07:33So, one day, he went off on his own and then I just didn't believe he would get it.
0:07:33 > 0:07:36We were actually looking at two plots.
0:07:36 > 0:07:37And he didn't get the first one.
0:07:37 > 0:07:41So Dad turned up on his own, thinking we weren't going to get it again.
0:07:41 > 0:07:42Obviously, we did.
0:07:42 > 0:07:45Zoe, how do you feel and what is your involvement going to be,
0:07:45 > 0:07:46with your dad having bought this plot?
0:07:46 > 0:07:49Mum and Dad have bought this plot, it is technically Mum's plot.
0:07:49 > 0:07:51She's bought the land.
0:07:51 > 0:07:54I'm going to be living in one of the houses, once it's built.
0:07:54 > 0:07:57Hopefully, we are hoping for two houses.
0:07:57 > 0:08:00So, a pair of semis, one for you and one for...
0:08:00 > 0:08:03- My older brother, yes.- One for your older brother?
0:08:03 > 0:08:06But it only comes with outline planning for one house.
0:08:06 > 0:08:09Yes. So we've put in planning permission for two houses,
0:08:09 > 0:08:10with the hopes that we can get it.
0:08:10 > 0:08:13We've got an architect on board.
0:08:13 > 0:08:16He's trying to design something that would be suitable for the area.
0:08:16 > 0:08:20We want to fit in and we want to do it as a family project,
0:08:20 > 0:08:22for both of our children to have a starter home.
0:08:22 > 0:08:24Zoe and her brother Dominic
0:08:24 > 0:08:26are getting a great leg-up on the housing ladder here.
0:08:26 > 0:08:30Dad Malcolm, who is a retired IT consultant,
0:08:30 > 0:08:33is going to project manage a team of professionals.
0:08:33 > 0:08:36Of course, the plan depends on them getting change in that permission.
0:08:38 > 0:08:41How can you be sure that you'll get your permission to build two houses
0:08:41 > 0:08:43- and not one?- We don't know,
0:08:43 > 0:08:47but we feel that it would be more in keeping with the area to build a pair
0:08:47 > 0:08:51of semis here than to have the single detached, with three rooms,
0:08:51 > 0:08:54which is our present planning outline that we have.
0:08:54 > 0:08:56And how are you intending to build?
0:08:56 > 0:08:58What type of houses are you thinking of?
0:08:58 > 0:09:03We're hoping to be able to move in before the end of the year.
0:09:03 > 0:09:07In order to do that, we need to build something which is going to come up quite quickly.
0:09:07 > 0:09:09A timber frame is probably something we'll be looking into.
0:09:09 > 0:09:12Timber frame does go up a lot quicker.
0:09:12 > 0:09:14Obviously you are very keen to get in, aren't you?
0:09:14 > 0:09:16I finish university this year,
0:09:16 > 0:09:20so I'm hoping I'll be able to move in quite swiftly and leave the parents' home.
0:09:20 > 0:09:23How's that going to be for you, Mum?
0:09:23 > 0:09:25Absolutely fine.
0:09:25 > 0:09:27I'm hoping she'll do a lot of the painting and decorating.
0:09:27 > 0:09:30We want to do the finishing touches.
0:09:30 > 0:09:33We are quite keen on choosing the designs.
0:09:33 > 0:09:36I think we're in agreement, yes.
0:09:36 > 0:09:39Girls, are you going to be really heavily involved in this?
0:09:39 > 0:09:40Are you going to get your teeth into it?
0:09:40 > 0:09:44Obviously, it's the first time you've ever done anything like this before, Zoe?
0:09:44 > 0:09:45I'm really hoping to.
0:09:45 > 0:09:48It's a complete adventure for us all.
0:09:48 > 0:09:49I'm hoping that, together,
0:09:49 > 0:09:52we'll be able to have a really good time and it will go smoothly.
0:09:52 > 0:09:55What about the fact that you have four garages there?
0:09:55 > 0:09:59Have you had the chance to get inside and see what you've actually bought?
0:09:59 > 0:10:00No, that is the big mystery.
0:10:00 > 0:10:01There could be treasure!
0:10:01 > 0:10:03Yes! Or a load of old junk.
0:10:03 > 0:10:06That's another thing. You could have so much fabulous stuff behind those
0:10:06 > 0:10:07doors, or not.
0:10:07 > 0:10:10We have taken into consideration there might even be asbestos.
0:10:10 > 0:10:14We really don't know. We know that is a specialist removal job.
0:10:14 > 0:10:16We are waiting with bated breath,
0:10:16 > 0:10:18because the keys of the doors have disappeared.
0:10:18 > 0:10:20And they are nowhere to be seen?
0:10:20 > 0:10:22How much do you think it is going to cost you?
0:10:22 > 0:10:24Have you budgeted for the build,
0:10:24 > 0:10:27and what you think the realistic costings are?
0:10:27 > 0:10:31If we manage to get planning permission for a pair of semis,
0:10:31 > 0:10:35we think it will be in the region of about 125 per semi.
0:10:35 > 0:10:37125 per house, let's say?
0:10:37 > 0:10:39- Yes.- We have some contingency.
0:10:39 > 0:10:44But we don't really want to build over and above what the local market
0:10:44 > 0:10:47- recommends.- Yes, that is a great way of thinking.
0:10:47 > 0:10:49Do you have a plan B, girls, if it doesn't happen,
0:10:49 > 0:10:51if you don't get permission?
0:10:51 > 0:10:55Would you be happy building one house that already has outline planning?
0:10:55 > 0:10:57I think probably not.
0:10:57 > 0:10:59We might just prepare the site and
0:11:01 > 0:11:05sell it on. The whole purpose is to build two for our children.
0:11:05 > 0:11:09If we can't build two, I don't think they want to share.
0:11:09 > 0:11:11You could always put a nice stud partition wall up!
0:11:13 > 0:11:15I mean, it's an amazing thing what you're doing,
0:11:15 > 0:11:17building two houses for your kids.
0:11:17 > 0:11:21It's great that you two are going to be living next door to each other.
0:11:21 > 0:11:23You've just got a long way to go from here.
0:11:23 > 0:11:26How long do you think something like this is going to take you?
0:11:26 > 0:11:28We're hoping to do it in around a year.
0:11:28 > 0:11:30OK, so there's no immediate hurry for this?
0:11:30 > 0:11:32No. We've got to allow...
0:11:32 > 0:11:35We've been through the planning permission route before and had to go to
0:11:35 > 0:11:38an appeal. We know how long that can take.
0:11:39 > 0:11:41The actual build, I think at the moment,
0:11:41 > 0:11:43builders are highly sought after
0:11:43 > 0:11:47and having a good one, for us, is going to be essential.
0:11:47 > 0:11:50What are you most looking forward to with this project?
0:11:50 > 0:11:51Just having my own home, it'll be crazy.
0:11:51 > 0:11:53- How old are you?- I'm 20.
0:11:53 > 0:11:54- Wow.- I'll be 21...
0:11:54 > 0:11:58- Well, hopefully.- Hopefully, she'll get the key of the door when she's 21.
0:11:58 > 0:12:00How fantastic to have your own house at 21.
0:12:00 > 0:12:03And, of course, how does Dominic feel about this?
0:12:03 > 0:12:06Well, I think he's really looking forward to having a place of his own,
0:12:06 > 0:12:10and the fact that this particular location is quite close to main road
0:12:10 > 0:12:14routes, good train routes for London, so I think he'll be quite happy.
0:12:14 > 0:12:18Ladies, congratulations and I'll keep my fingers crossed and hope planning
0:12:18 > 0:12:19permission does go your way.
0:12:19 > 0:12:22- Well done.- Thank you, Lucy.- Thank you.- Well done, thank you.
0:12:24 > 0:12:28Well, this project will really be a big adventure for all the family.
0:12:28 > 0:12:31Building from scratch for the first time.
0:12:31 > 0:12:34But will they get the planning permission they need to build two,
0:12:34 > 0:12:35and not just one house?
0:12:35 > 0:12:39You can find out how Felicity and Zoe get on later in the programme.
0:12:42 > 0:12:45Up to Scotland now, to the town of Motherwell.
0:12:45 > 0:12:49Sitting just 12 miles south-east of the city of Glasgow,
0:12:49 > 0:12:53Motherwell was once the centre of Scotland's steel production.
0:12:53 > 0:12:56The Ravenscraig Steelworks shut in 1992,
0:12:56 > 0:13:01but it can still be seen on the crest of Motherwell Football Club's team shirt,
0:13:01 > 0:13:03who are nicknamed the Steelmen.
0:13:03 > 0:13:06The site has been rejuvenated and now offers a new college and sports
0:13:06 > 0:13:09facility within a mile of the town centre.
0:13:09 > 0:13:12But I wonder if today's property will be a STEEL?
0:13:12 > 0:13:14Just a short walk away from the town centre
0:13:14 > 0:13:19and the train station, which has direct links to Edinburgh and Glasgow,
0:13:19 > 0:13:21is the property I'm here to see.
0:13:21 > 0:13:26It's a two-bedroom top-floor flat, with a guide price of £20,000.
0:13:26 > 0:13:29That's quite low. But I'm not sure how you get in.
0:13:29 > 0:13:30Let's try round the back.
0:13:33 > 0:13:37So, round the back it is and to be honest it's going to be quite a trek
0:13:37 > 0:13:39and take some time to get to the top floor.
0:13:43 > 0:13:46The flat comes with a garage, but looking at the grass and the communal
0:13:46 > 0:13:49garden, it looks like no-one's driven on here for quite some time.
0:13:51 > 0:13:53Right, time to make the climb.
0:13:53 > 0:13:56Spare a thought for my old footballer's knees, please.
0:14:02 > 0:14:06The communal stairs aren't in the best nick and are a bit windy for me,
0:14:06 > 0:14:07if I'm honest.
0:14:07 > 0:14:10I've almost made it to the third floor.
0:14:12 > 0:14:14Finally, I've found the entrance.
0:14:14 > 0:14:18Look at this hallway - it's nice and wide, it's nice and bright,
0:14:18 > 0:14:21and the first thing that hits you is that.
0:14:21 > 0:14:23Hopefully... It is original, actually.
0:14:23 > 0:14:26That's original parquet flooring there and it's all the way through the hallway.
0:14:26 > 0:14:29I can see there that's one of the bedrooms just there.
0:14:29 > 0:14:31Hopefully, it's the smaller of the two.
0:14:31 > 0:14:34Round the corner here we've got even more parquet flooring.
0:14:34 > 0:14:38The bathroom, which is a little bit tight, it's a bit snug.
0:14:38 > 0:14:41And it also looks a bit tired, so I'd look to replace all of that.
0:14:41 > 0:14:46And into bedroom number one which is a good size, nice high ceilings,
0:14:46 > 0:14:48you've got some fitted wardrobes as well.
0:14:48 > 0:14:51You'd quite easily get a double bed in here.
0:14:51 > 0:14:55Now, I did mention that low guide price of £20,000.
0:14:55 > 0:15:00Let's do some sums. Imagine you got this for £25,000 and you spent
0:15:00 > 0:15:02£5,000 on it.
0:15:02 > 0:15:05That would give you a total spend of £30,000.
0:15:05 > 0:15:11I know, in this area, two-beds will get you £400 a month.
0:15:11 > 0:15:16Now, I've done my sums and I know what kind of yield that gets you.
0:15:16 > 0:15:19Wait for it. 16% yield.
0:15:19 > 0:15:20I think that is absolutely amazing.
0:15:20 > 0:15:24Where else are you going to get that kind of return on your investment?
0:15:25 > 0:15:29Of course, always bear in mind the yield goes down the more you decide to
0:15:29 > 0:15:32spend on the flat, so it's important not to get carried away.
0:15:36 > 0:15:39OK, the loft space, you might be thinking, great, let's extend,
0:15:39 > 0:15:43let's make it bigger. It's not as straightforward as that,
0:15:43 > 0:15:44especially with flats.
0:15:44 > 0:15:47There's always the issue of who owns the loft space.
0:15:47 > 0:15:51Well, the way to find out is to check the title deeds and if there's
0:15:51 > 0:15:55nothing in the title deeds that specifies who owns the loft space then
0:15:55 > 0:15:57it's, generally in Scotland,
0:15:57 > 0:16:01the top floor own the loft space and you have the potential to make your
0:16:01 > 0:16:02flat bigger.
0:16:02 > 0:16:06Now, as always on Hammer, double check, double check,
0:16:06 > 0:16:07double check again. Check with planning,
0:16:07 > 0:16:13check with your solicitor and check those title deeds just to cover your back.
0:16:13 > 0:16:17OK, and into the kitchen-lounge area, which is not a bad size.
0:16:17 > 0:16:21You've got two big, nice windows there and a kitchen which is a little bit
0:16:21 > 0:16:23dated but it's not in bad condition.
0:16:23 > 0:16:26You'd probably get away with changing the handles,
0:16:26 > 0:16:27giving it a bit of a clean,
0:16:27 > 0:16:30and you might want to change your oven and hob as well.
0:16:30 > 0:16:34Saying that, I've got to remind you, £20,000 guide price.
0:16:34 > 0:16:39For me, that would be money well spent with that potential yield as well.
0:16:39 > 0:16:41This is one that I'd possibly go for.
0:16:43 > 0:16:46So, it might be all systems go for me.
0:16:46 > 0:16:50But what does an agent from the auction house who marketed it think?
0:16:52 > 0:16:54What will it take to get this flat up and running?
0:16:57 > 0:17:00You have a choice. You could keep it the way it is
0:17:00 > 0:17:02and go for a low-value rental market
0:17:02 > 0:17:05of which there is a plentiful supply here.
0:17:05 > 0:17:08I think most people would choose to strip the flat back, redecorate,
0:17:08 > 0:17:10replace the kitchen, the bathroom,
0:17:10 > 0:17:16upgrade the central heating system and they'll get a far better quality of tenant in after.
0:17:16 > 0:17:20Good long-term tenants can save you a lot of hassle and money.
0:17:20 > 0:17:24Would it be possible to go the whole hog and extend into the loft,
0:17:24 > 0:17:26and would it be worthwhile?
0:17:26 > 0:17:30Yes, there is an option here because this flat actually owns the loft space as well.
0:17:30 > 0:17:34There are other flats in the street that have extended into the loft space.
0:17:34 > 0:17:38Extending upstairs here might not add great extra value.
0:17:38 > 0:17:44Post-renovation, this flat should be worth around £45,000 as a standard top-floor flat.
0:17:44 > 0:17:48So with the extension upstairs, the value of the flat would
0:17:48 > 0:17:52probably move to between £53,000 and £55,000.
0:17:52 > 0:17:58Hm, that maximum increase in value of £10,000 doesn't seem like it's
0:17:58 > 0:18:01enough to make the conversion financially viable.
0:18:01 > 0:18:07Even with the conversion, the top rental figure would be £475 per month,
0:18:07 > 0:18:12so maybe it's best to stick to the simple solution of a good solid refurb.
0:18:12 > 0:18:14But it depends on your circumstances, of course.
0:18:16 > 0:18:19This flat isn't in bad condition at all and you can do as much or as
0:18:19 > 0:18:21little as you please.
0:18:21 > 0:18:24And if you were to get it for anywhere near that guide price
0:18:24 > 0:18:26you would be looking at a very healthy yield.
0:18:26 > 0:18:29Let's see who spotted its potential when it went under the hammer.
0:18:29 > 0:18:32Two-bed top-floor flat, home report, at 28, high ceilings,
0:18:32 > 0:18:35town centre location, low guide price.
0:18:35 > 0:18:37Let's get away. At 15, then.
0:18:37 > 0:18:41At £15,000. 15. 10.
0:18:41 > 0:18:43Need a bid. 10 here, at 10 I'm bid.
0:18:43 > 0:18:4411, can I say?
0:18:44 > 0:18:4611 bid. 12?
0:18:46 > 0:18:4712 bid. No.
0:18:47 > 0:18:50Here at 11. At £11,000 are we done?
0:18:50 > 0:18:5112 here. 13.
0:18:51 > 0:18:5314. 14 bid.
0:18:53 > 0:18:5515. 16?
0:18:55 > 0:18:5716 bid. 17.
0:18:57 > 0:18:5817 bid. 18?
0:18:59 > 0:19:01No?
0:19:01 > 0:19:02You're out. Here at 17.
0:19:02 > 0:19:05At 17, are we done? At 17,000.
0:19:05 > 0:19:0818. 19, sir?
0:19:08 > 0:19:0920?
0:19:09 > 0:19:1220 bid. 21.
0:19:12 > 0:19:1422. 22 bid?
0:19:14 > 0:19:1523, sir? 23 bid.
0:19:15 > 0:19:1724?
0:19:19 > 0:19:2123 there with the bonnet.
0:19:21 > 0:19:23At 23. 24, back of the room.
0:19:23 > 0:19:2525. 25 bid.
0:19:25 > 0:19:2726?
0:19:28 > 0:19:2926 bid.
0:19:29 > 0:19:3027? 27 bid.
0:19:30 > 0:19:3428? 28 bid. 29?
0:19:34 > 0:19:3529 bid.
0:19:35 > 0:19:4030? At £29,000 seated, against you at the back and against you here.
0:19:40 > 0:19:47At £29,000 for the first time, second time, selling away, sir.
0:19:47 > 0:19:49Thank you. Can I have your paddle number?
0:19:49 > 0:19:56Bidder 178 was Gerry, who bought this with his wife Keira, seen here sitting to his left.
0:19:56 > 0:19:59Keira came along to tell me why she and Gerry decided to buy this
0:19:59 > 0:20:01top-floor flat for 29 grand.
0:20:10 > 0:20:13- Keira, nice to meet you.- Hi, Dion. How are you?- Congratulations.
0:20:13 > 0:20:16- Thank you.- What was it that attracted you to this property?
0:20:16 > 0:20:19Well, to be honest, the guide price was pretty low.
0:20:19 > 0:20:24It seemed like a good opportunity in terms of, you know,
0:20:24 > 0:20:27getting into the buy-to-let market.
0:20:27 > 0:20:31And it wasn't a huge risk in terms of capital.
0:20:31 > 0:20:33That's not a Scottish accent.
0:20:33 > 0:20:37- No.- Where are you from?- I'm from Dublin originally.- Are you really? - Yeah.
0:20:37 > 0:20:38Love Dublin. Been there many times.
0:20:38 > 0:20:41Many times. So what made you look in this part of the world?
0:20:41 > 0:20:43Well, my husband's originally from Glasgow.
0:20:43 > 0:20:46We've been living in the Middle East for about the last, almost ten years.
0:20:46 > 0:20:50And that's... We decided we were coming home.
0:20:50 > 0:20:51Wow. Whereabouts?
0:20:51 > 0:20:56- What were you doing?- We were both living and working in Qatar.
0:20:56 > 0:20:58I was working in HR, he's an engineer.
0:20:58 > 0:21:01So, you know... Both in the construction industry.
0:21:01 > 0:21:05Coming back home. Was it the family, or was it heartstrings that brought you back home?
0:21:05 > 0:21:06Well, yeah, no, it is.
0:21:06 > 0:21:10You want to be nearer family and you're very conscious that you're missing
0:21:10 > 0:21:14out on family stuff so, you know, just time.
0:21:14 > 0:21:17So, why property? What's the attraction to property?
0:21:17 > 0:21:23Well, we already have two other properties that are currently rented.
0:21:23 > 0:21:27One just up the road and another one in Dublin.
0:21:27 > 0:21:35So, it just seemed like a good way to use your savings from
0:21:35 > 0:21:36your time working in the Middle East.
0:21:36 > 0:21:40Good on you. So, tell me what you're going to do with this particular property.
0:21:40 > 0:21:42Well, to be honest,
0:21:42 > 0:21:46the plan is to actually try and get this rented out as soon as possible.
0:21:46 > 0:21:51So we want to get the work done quickly and
0:21:51 > 0:21:52improve the kitchen.
0:21:52 > 0:21:54It's quite dated.
0:21:54 > 0:21:58The bathroom needs, in my view, total revision.
0:21:58 > 0:22:00Yes. Yes.
0:22:00 > 0:22:01We'd like, obviously,
0:22:01 > 0:22:08to get rid of the texture on the ceilings in the bedroom and the hall areas.
0:22:08 > 0:22:10Don't want to spend a huge amount of money.
0:22:12 > 0:22:14While we do own the loft space and all that,
0:22:14 > 0:22:17the loft conversion, in terms of how long it would take to get planning
0:22:17 > 0:22:22permission or anything, wouldn't be worthwhile in terms of the investment
0:22:22 > 0:22:26it would take, you know, and the return on that,
0:22:26 > 0:22:28and the time delays it would cause.
0:22:28 > 0:22:30- So that's not an option at this juncture.- OK.
0:22:30 > 0:22:31How much is all that going to cost you?
0:22:31 > 0:22:33What's your...what's your budget?
0:22:33 > 0:22:37Really don't want to spend more than about £5,000 or £6,000.
0:22:37 > 0:22:39So, Keira, what will that bring your total spend to, then?
0:22:39 > 0:22:4037...
0:22:42 > 0:22:44- At the top end.- Is that what you had in mind?
0:22:44 > 0:22:48- Is that about right for you? - Yeah, you know, it's OK.
0:22:48 > 0:22:51The rental market in this area's fairly healthy.
0:22:51 > 0:22:58And, uh, you know, you do tend to get more longer-term tenants.
0:22:58 > 0:23:01That's really what we want. We wanted to make this somewhere
0:23:01 > 0:23:04that somebody's going to want to live on a longer-term basis.
0:23:04 > 0:23:08Good on you. And how long's all the work going to take you to do?
0:23:08 > 0:23:10Six to eight weeks maximum.
0:23:10 > 0:23:12And who's going to do the work for you?
0:23:12 > 0:23:15Do you get involved yourself? Does, your partner get involved?
0:23:15 > 0:23:18I've actually already done quite a bit of research in terms of fittings
0:23:18 > 0:23:20and things like that
0:23:20 > 0:23:21for the property. But
0:23:21 > 0:23:27honestly, it's quicker for things like painting and stuff,
0:23:27 > 0:23:29which I would normally do myself,
0:23:29 > 0:23:33somebody else will get in here and get this whole place painted in a day,
0:23:33 > 0:23:35whereas it would take me the best part of a week.
0:23:35 > 0:23:39So to expedite the process, I'm not going to really do a huge amount of
0:23:39 > 0:23:42work myself, more project managing it.
0:23:42 > 0:23:45And we have another project under way as well at the moment.
0:23:45 > 0:23:48So you're doubling up at the moment, are you?
0:23:48 > 0:23:51- Yeah.- So, Keira, I wish you all the best, I hope it all works out for you.
0:23:51 > 0:23:53- Good luck.- Thank you, Dion. - Good luck.
0:23:53 > 0:23:57So, Keira hasn't given herself a huge budget or timescale and
0:23:57 > 0:23:59she's thinking about doing quite a lot in this flat.
0:23:59 > 0:24:03Will she get it all done? You can find out later in the programme.
0:24:03 > 0:24:07Still to come, I'm in Derbyshire at an end-of-terrace that doesn't seem
0:24:07 > 0:24:09to, well, end.
0:24:09 > 0:24:11Oh, that's a bit of good news.
0:24:11 > 0:24:15There's an extra room there. That's a nice surprise.
0:24:15 > 0:24:19And no surprises with what's been holding up Keira's flat renovation.
0:24:19 > 0:24:24The availability of tradesmen certainly caused delays.
0:24:27 > 0:24:31We're heading back to Stevenage in Hertfordshire now, where Lucy parked up
0:24:31 > 0:24:34at a row of four garages that went up for auction.
0:24:34 > 0:24:40It wasn't much to look at, so you might have thought this site was a boring prospect.
0:24:40 > 0:24:44But the best thing about this plot is that it already has outline planning
0:24:44 > 0:24:50permission to knock all this down and build a three-bedroomed detached
0:24:50 > 0:24:53house here. Now we're talking.
0:24:53 > 0:24:56You'd still have to do a lot of talking with the local planning
0:24:56 > 0:24:59department to put in full plans, but it certainly made it an attractive
0:24:59 > 0:25:02lot, especially for those flying the nest,
0:25:02 > 0:25:06which is what husband and wife Malcolm and Felicity thought when they paid
0:25:06 > 0:25:10£107,000 at auction.
0:25:10 > 0:25:13They didn't want to build one house, they planned on two semis.
0:25:13 > 0:25:17One for each of their children, Dominic and Zoe.
0:25:17 > 0:25:22Lucy discovered there was a lot riding on getting planning permission.
0:25:22 > 0:25:23If you don't get permission,
0:25:23 > 0:25:27would you be happy building one house that already has outline planning?
0:25:27 > 0:25:29I think probably not.
0:25:29 > 0:25:34- No.- Really?- We might prepare the site and
0:25:34 > 0:25:38sell it on. The whole purpose is to build two for our children and if we
0:25:38 > 0:25:41can't build two, I don't think they want to share.
0:25:41 > 0:25:46Knowing that a planning wrangle lay ahead and all that a new-build entails,
0:25:46 > 0:25:49the family had allowed a year's timescale.
0:25:49 > 0:25:50Well, it's two years on.
0:25:50 > 0:25:53Did Zoe and Dominic get their new homes?
0:25:54 > 0:25:58Well, there's a smart new-build but it's not a pair of semis,
0:25:58 > 0:26:01it is a three-bedroomed detached house.
0:26:01 > 0:26:06Planning concerns that this site was overdeveloped meant two semis didn't
0:26:06 > 0:26:08get out of the ground.
0:26:08 > 0:26:12And, no, Zoe and Dominic have not decided to share.
0:26:12 > 0:26:15Dominic has bought his own place and Zoe is in a shared flat,
0:26:15 > 0:26:19so it was left to Mum and Dad to try and maximise their return on this
0:26:19 > 0:26:24house by going for a high-spec finish, which is clearly evident in this
0:26:24 > 0:26:27stunning open-plan living kitchen area.
0:26:29 > 0:26:34The stylish ultramodern appliances are sure to wow potential purchasers.
0:26:49 > 0:26:51Back towards the front of the house,
0:26:51 > 0:26:54there is a downstairs utility and shower room.
0:26:58 > 0:27:03The full-length double windows offer so much light when you walk in.
0:27:04 > 0:27:07Upstairs, there is a sleek family bathroom, but if you are in the master
0:27:07 > 0:27:10bedroom, you won't have to use it because it has an en-suite.
0:27:25 > 0:27:29The whole house uses an underfloor heating system so furniture can be
0:27:29 > 0:27:31arranged against any wall.
0:27:31 > 0:27:33That's a bright idea.
0:27:37 > 0:27:41This is a fabulous house, but Felicity and Malcolm said they didn't want to
0:27:41 > 0:27:43build just one house.
0:27:43 > 0:27:46Even the project manager thought that their plan to sell the plot on was
0:27:46 > 0:27:49best, so why the change of mind?
0:27:50 > 0:27:56We don't give up easily and we were just keen to plough on come what may
0:27:56 > 0:28:01at that stage. We'd invested so much time and emotion in it,
0:28:01 > 0:28:04so I didn't really have my business hat on when I turned around and said,
0:28:04 > 0:28:06"No, I don't want to sell it."
0:28:06 > 0:28:11And being determined came in handy when they hit unforeseen problems.
0:28:11 > 0:28:14What we didn't know on this infill plot,
0:28:14 > 0:28:19it was a bit like Crossrail underground and we had to move so much that we
0:28:19 > 0:28:24dug down and down and I could've met my nephew in Australia because we
0:28:24 > 0:28:26went down two and a half metres.
0:28:30 > 0:28:32With a mix of oak tree roots,
0:28:32 > 0:28:35sewerage pipes and an electricity cable to contend with,
0:28:35 > 0:28:40it's no wonder their world got turned upside down on this project.
0:28:40 > 0:28:43They did hire professionals to guide them through the process and they
0:28:43 > 0:28:47must have picked up some tips and tricks from them in the past two years.
0:28:47 > 0:28:49Photograph your noggins.
0:28:50 > 0:28:54Because I photographed all the noggins at first fix and then when I looked
0:28:54 > 0:28:58back at the photos, I thought, they are boring, I'll delete those.
0:28:58 > 0:29:00So when the plumber came to put something up, he said,
0:29:00 > 0:29:02where are your noggins?
0:29:02 > 0:29:05I should probably jump in and explain here that a noggin -
0:29:05 > 0:29:08or a dwang, as they're known in Scotland -
0:29:08 > 0:29:12are struts placed in between the wall studs or joists to give them extra
0:29:12 > 0:29:16strength and are visible at the timber frame stage.
0:29:16 > 0:29:20So it's very useful to photograph your noggins otherwise you can get holes
0:29:20 > 0:29:23in the wall where you don't need them.
0:29:23 > 0:29:25Thanks for all that advice, Felicity.
0:29:25 > 0:29:30Originally, the total budget for building two semis was 250,000.
0:29:30 > 0:29:32However, the budget has climbed.
0:29:32 > 0:29:36The total, including the land purchase, now stands at a staggering
0:29:36 > 0:29:39£420,000.
0:29:39 > 0:29:42There is not a lot of profit in this.
0:29:42 > 0:29:48We are trying to go to the top of the market, not halfway down,
0:29:48 > 0:29:50not three quarters,
0:29:50 > 0:29:54but to the top to get some money and some profit for the two years of work
0:29:54 > 0:29:57that we've put into this.
0:29:57 > 0:30:00OK, then, time to find out if they will get their money's worth.
0:30:00 > 0:30:03We've asked two local estate agents to come along and see the house.
0:30:03 > 0:30:07First, let's hear from the agent who saw the plot when it was just garages.
0:30:09 > 0:30:12I think it's a massive shame they didn't get the planning
0:30:12 > 0:30:14for the two semis they were originally going for.
0:30:14 > 0:30:17I think it would have been far more in keeping with the area and I think
0:30:17 > 0:30:20it would have generated a higher profit margin, in all honesty.
0:30:20 > 0:30:23What they've actually done with the property I think it's a very,
0:30:23 > 0:30:27very good job, very high standard of finish.
0:30:27 > 0:30:28It's a lovely property.
0:30:28 > 0:30:32I would say the selling point for this property most certainly will be
0:30:32 > 0:30:35the downstairs living space, the open-plan kitchen lounge-diner.
0:30:35 > 0:30:39Great space for entertaining, great for families to grow.
0:30:39 > 0:30:43Great feedback, but will the final sales figures give any profit
0:30:43 > 0:30:47on Malcolm and Felicity's 420 grand investment?
0:30:47 > 0:30:54A sales valuation - I would suggest a guide price of 415 to 430,000.
0:30:54 > 0:30:56Given it's the only detached property in the area,
0:30:56 > 0:30:58I think that would be a sensible price.
0:30:58 > 0:31:01If the property was listed on today's open market,
0:31:01 > 0:31:06it would achieve between £425,000 and £450,000.
0:31:06 > 0:31:09I think those values are fairly fair.
0:31:09 > 0:31:13Obviously, we hope for the better and the topmost price
0:31:13 > 0:31:18because we put the topmost quality products into the home.
0:31:18 > 0:31:23That top value of 450 grand could mean a pre-tax profit of 30,000,
0:31:23 > 0:31:26but this one is not just about the money.
0:31:26 > 0:31:30Felicity and Malcolm are going to build a house for themselves
0:31:30 > 0:31:32with all the experience they've gained.
0:31:32 > 0:31:36We've looked at a potential site.
0:31:36 > 0:31:41All we have to do is move this and then move on.
0:31:41 > 0:31:46But we will make sure that underneath the ground is as good as on top of
0:31:46 > 0:31:48the ground before we actually purchase.
0:31:53 > 0:31:57Time to take a trip to the Derbyshire countryside now and the village of
0:31:57 > 0:31:59South Normanton.
0:31:59 > 0:32:03It grew from a small agricultural community to a larger village
0:32:03 > 0:32:06when coal mines opened in the late 1800s.
0:32:06 > 0:32:12The nearby Carnfield Hall is a grand country house dating back to the 15th century
0:32:12 > 0:32:16which fell into decline in the 1960s after suffering subsidence
0:32:16 > 0:32:18caused by the mining in the area.
0:32:18 > 0:32:21Thankfully, it's been restored in recent years.
0:32:21 > 0:32:22Don't get too excited, though.
0:32:22 > 0:32:24This one isn't going under the hammer.
0:32:24 > 0:32:27Our lot is definitely not as grand.
0:32:27 > 0:32:32And up for auction was a two-bedroomed semidetached at a guide price of
0:32:32 > 0:32:37just £37,000 - plus it's on the end here.
0:32:44 > 0:32:46Hmm!
0:32:51 > 0:32:53Ah, yes,
0:32:53 > 0:32:57it looks as questionable on the inside as it did at first glance
0:32:57 > 0:33:03on the outside and straightaway we are seeing solid floors that are starting to
0:33:03 > 0:33:08show signs of, oh, I don't know, coming up in lots of different places.
0:33:08 > 0:33:09Maybe a problem with the substrate.
0:33:09 > 0:33:12I doubt there is any damp proof course in this house
0:33:12 > 0:33:15and straightaway, looking around, seeing all sorts of signs of damp.
0:33:15 > 0:33:17And then, boom,
0:33:17 > 0:33:19you don't have to go very far to see a huge crack in the wall.
0:33:19 > 0:33:20You know...
0:33:20 > 0:33:23How far have I come?
0:33:23 > 0:33:25About three feet.
0:33:25 > 0:33:28Not making a very good first impression, is it?
0:33:28 > 0:33:31Let's try and see above what we've got though, to, as usual,
0:33:31 > 0:33:34what it might become. Come through here.
0:33:34 > 0:33:36Little storage area under the stairs.
0:33:36 > 0:33:37Into the rear kitchen.
0:33:37 > 0:33:41This would've been a classic two up, two down in its day.
0:33:41 > 0:33:46Again, problems with the floor, so we're looking at completely digging out the floor, for a start.
0:33:46 > 0:33:49More signs of cracking in here.
0:33:49 > 0:33:52Oh, that's a bit of good news. There's an extra room, there.
0:33:52 > 0:33:54That's a nice surprise.
0:33:54 > 0:33:57But basically, it's a rip-it-all- out-and-start-again job, isn't it?
0:34:11 > 0:34:16Well, up the very rickety stairs to the first floor and you don't have
0:34:16 > 0:34:22to go too far again just to get that feeling something's not right with this property.
0:34:22 > 0:34:24The floors look like they are all over the place,
0:34:24 > 0:34:27the door frames are wonky and then, you know,
0:34:27 > 0:34:31you don't have to be a rocket scientist to figure out that's not right.
0:34:31 > 0:34:33A massive crack in this wall,
0:34:33 > 0:34:37so this is a classic case of potential subsistence.
0:34:37 > 0:34:41Now, this area is a mining area and the first thing
0:34:41 > 0:34:45I will be looking at, therefore, is a mining survey.
0:34:45 > 0:34:48Is there a mine or a mine shaft close to this property?
0:34:48 > 0:34:53Secondly, I'd like a structural survey in here to check out exactly how bad
0:34:53 > 0:34:59the movement is because that could definitely blow your budget pretty darn quickly.
0:34:59 > 0:35:02Which is a shame, because, like downstairs,
0:35:02 > 0:35:04it's a bit of a surprise, this property,
0:35:04 > 0:35:10partly because of this room here which almost dovetails in with the
0:35:10 > 0:35:11next-door property.
0:35:11 > 0:35:14So from the front, it doesn't look that big but you've got this room here
0:35:14 > 0:35:18and the one below it which gives so much
0:35:18 > 0:35:20more space to the house, which is amazing, really.
0:35:20 > 0:35:24At the moment, this is configured as the bathroom and it's huge,
0:35:24 > 0:35:28so I think there is some internal configuration or reconfiguration needed.
0:35:28 > 0:35:32Taking out some of these walls, to create maybe two,
0:35:32 > 0:35:37possibly three bedrooms and still a decent sized bathroom.
0:35:37 > 0:35:41So, you know, the potential here is huge but you've really got to sort out
0:35:41 > 0:35:47the basics first and know exactly how much it's going to cost you to get
0:35:47 > 0:35:50the house structurally sound again.
0:35:50 > 0:35:54This house's structural issues are clear to see but one thing less obvious
0:35:54 > 0:35:59is the space on offer in the back garden because it's so overgrown.
0:35:59 > 0:36:02I might have spotted something else just over the wall.
0:36:02 > 0:36:05Now here's an interesting thing - because at the side of the property,
0:36:05 > 0:36:07there is this garage.
0:36:07 > 0:36:10Now, it isn't mentioned in the auction particulars
0:36:10 > 0:36:13but it is clearly associated with this property somehow.
0:36:15 > 0:36:18It really needs some investigation because you need to know,
0:36:18 > 0:36:22does it form part of this property? How long has it been there?
0:36:22 > 0:36:26Is there a possibility that, over time, it could have been amalgamated with this property?
0:36:26 > 0:36:28What about this bit of land? Who owns this?
0:36:28 > 0:36:29Do you have rights across it?
0:36:29 > 0:36:33All sorts of things that your solicitor really needs to look into.
0:36:33 > 0:36:36In the meantime, can the auctioneer from the auction house that marketed
0:36:36 > 0:36:40the property help shed any life on the situation with that garage?
0:36:41 > 0:36:45There appears to be a precast sectional concrete garage which may belong
0:36:45 > 0:36:49to this property - however it seems to be fairly clear that it's on land
0:36:49 > 0:36:52that doesn't belong to this property.
0:36:52 > 0:36:55What a new owner should do is check out whether that is a registered
0:36:55 > 0:36:59title and if it is, find the person concerned,
0:36:59 > 0:37:02should he want to buy an access to the garage.
0:37:02 > 0:37:04If it isn't registered title,
0:37:04 > 0:37:08he may have a claim for possessory title because I think the garage has been
0:37:08 > 0:37:10there probably 25 years.
0:37:10 > 0:37:12Possessory title, I hear you ask?
0:37:12 > 0:37:15Well, that's squatters' rights to you and me.
0:37:15 > 0:37:17The term is usually applied to property in possession
0:37:17 > 0:37:19by the squatter for more than 12 years.
0:37:19 > 0:37:22In some cases, the squatter can get full title.
0:37:22 > 0:37:27Given the £37,000 guide price, it's well worth investigating.
0:37:27 > 0:37:30What could this house be worth, once renovated?
0:37:30 > 0:37:34My estimate is it would have a value between 70 and £75,000 on the open
0:37:34 > 0:37:36market at the present time.
0:37:36 > 0:37:39That, of course, would not include the garage.
0:37:39 > 0:37:41Well, it's a low guide price,
0:37:41 > 0:37:43but as ever there is a reason for that.
0:37:43 > 0:37:44It is a property that needs a lot of
0:37:44 > 0:37:48work and so somebody needs to do their numbers very carefully.
0:37:48 > 0:37:51Let's find out who did that when it was sold under the hammer.
0:37:51 > 0:37:54The guide on this is 37,000.
0:37:54 > 0:37:57Who will start me off on the guide at 37,000, may I say?
0:37:57 > 0:38:00Bid me. 35, 34, 33,000.
0:38:00 > 0:38:0233 is bid, thank you.
0:38:02 > 0:38:04We're away at £33,000.
0:38:04 > 0:38:0533 is bid, 34, I'm looking.
0:38:05 > 0:38:07Thank you, sir, at 34.
0:38:07 > 0:38:09And with a few interested bidders around the room,
0:38:09 > 0:38:12the bid soon went above that £37,000 guide price.
0:38:12 > 0:38:16We rejoin at 42,500.
0:38:16 > 0:38:19And a half. And three. And a half.
0:38:21 > 0:38:25The bid is £43,000 to my right... And a half.
0:38:25 > 0:38:2744 is bid. Shakes his head.
0:38:27 > 0:38:29With you, sir, at £44,000.
0:38:29 > 0:38:33We are all done with it for the first, second, third and final time.
0:38:33 > 0:38:35Hammer's up, 44,000.
0:38:35 > 0:38:36It's yours, sir, well done.
0:38:36 > 0:38:41The successful bidder, paying £44,000 for this lot, was Eric.
0:38:41 > 0:38:46You might recognise him, as Eric has been on the show before, back in 2015.
0:38:48 > 0:38:52Eric is an electrician who renovates houses with his brother, Jack,
0:38:52 > 0:38:54who is a plumber.
0:38:54 > 0:38:56They've both renovated their fair share of properties
0:38:56 > 0:39:01together in the past couple of years, despite only being in their early 20s.
0:39:01 > 0:39:07Eric came along to tell me what his plans were for this latest acquisition.
0:39:07 > 0:39:10- Eric, good to see you again. - And you.- You've been a busy boy.
0:39:10 > 0:39:14- Busy.- And this is property number...? Whatever it is?
0:39:14 > 0:39:16Yes, this is number 25.
0:39:16 > 0:39:18That's fantastic, that really is.
0:39:18 > 0:39:22Congratulations. 25 in what period of time?
0:39:22 > 0:39:23It's just over two years.
0:39:23 > 0:39:26Two years. What's the plan? How many are you aiming for?
0:39:26 > 0:39:30We're just going to keep going until we get sick of each other, I guess.
0:39:30 > 0:39:35No, we'll keep going and just when the point comes to where we think we need
0:39:35 > 0:39:40to stop or we get too big, we'll just take it from there, really.
0:39:40 > 0:39:42- Just see how it goes.- And what do you think
0:39:42 > 0:39:47the real sort of... reason for your success has been?
0:39:47 > 0:39:50In anybody's...by anybody's standards, you know,
0:39:50 > 0:39:55over 20 properties in a portfolio in the space of two years is pretty darn impressive.
0:39:55 > 0:39:57Just hard working, really.
0:39:57 > 0:40:00Nobody wants to work, but if you work hard enough,
0:40:00 > 0:40:03you can get your working life out of the way early, I guess.
0:40:03 > 0:40:06Right. What do you want to go and do, is it travel the world?
0:40:06 > 0:40:10Yeah, I've already had a taste of going travelling, so, hopefully.
0:40:10 > 0:40:13You'll have this little nest egg in the UK which is earning money while
0:40:13 > 0:40:18you sleep and walk across Sydney Harbour Bridge and sleep on a beach in Fiji!
0:40:18 > 0:40:19Hopefully, yeah.
0:40:19 > 0:40:21- Live the dream.- Why not?
0:40:21 > 0:40:23Hey, property can lead to it, so that's brilliant news.
0:40:23 > 0:40:26So why this particular house?
0:40:26 > 0:40:29I asked myself that exact question.
0:40:29 > 0:40:31- Did you see it before you bought it? - I didn't, no.
0:40:32 > 0:40:34- Naughty, naughty.- I know, yeah.
0:40:34 > 0:40:37Was it worse condition than you thought, when you saw it, then?
0:40:37 > 0:40:40Yeah, this is by far the worst one we've bought, so
0:40:42 > 0:40:45we have our work cut out with this one, I think.
0:40:45 > 0:40:47So how do you see it, then? What needs to be done?
0:40:47 > 0:40:49Well, they're's a few cracks.
0:40:49 > 0:40:51Obviously, that needs to be sorted first of all.
0:40:51 > 0:40:55And with the upstairs bathroom being, well, through a bedroom,
0:40:55 > 0:40:58that needs to be reconfigured upstairs.
0:40:58 > 0:41:01So maybe the chimney breast might have to come out.
0:41:01 > 0:41:05There's quite a lot of building work before we get to anything aesthetic inside.
0:41:05 > 0:41:08And then just a full programme of new kitchen, new bathroom,
0:41:08 > 0:41:11- new electrics?- Everything will be brand-new inside.
0:41:11 > 0:41:16There's a few new windows need going out the back, as well, so,
0:41:16 > 0:41:18it's a big job.
0:41:18 > 0:41:22Eric's not kidding! He reckons the budget will be in the region of 20 grand
0:41:22 > 0:41:26and with a timescale of six to eight weeks, which is a short timeframe, indeed.
0:41:28 > 0:41:31Have you learned anything from the experience with this one?
0:41:31 > 0:41:34Yeah, make sure you go and view it before you buy it.
0:41:35 > 0:41:36That's a good idea.
0:41:38 > 0:41:39Would you have walked away?
0:41:39 > 0:41:41I almost bought it for 40 grand.
0:41:41 > 0:41:47- Oh, wow.- And I thought that was going to be a steal for the area and
0:41:47 > 0:41:49property, so...
0:41:49 > 0:41:50And somebody outbid me.
0:41:50 > 0:41:53I thought, I'll just give it another couple of goes.
0:41:53 > 0:41:55But I wish I hadn't.
0:41:55 > 0:41:57One property was going to come sooner rather than later.
0:41:57 > 0:41:59If you've got 25,
0:41:59 > 0:42:03you've got to have a bad one somewhere.
0:42:03 > 0:42:05Well, hopefully, this isn't it,
0:42:05 > 0:42:07but it's teetering on the edge of possibly being it.
0:42:07 > 0:42:10- Possibilities.- Let's talk about the garage outside.
0:42:10 > 0:42:13What do you know about the circumstances surrounding that?
0:42:13 > 0:42:17Well, we knew about the garage and we found out about the gentleman
0:42:17 > 0:42:20that owns the property before buying the garage,
0:42:20 > 0:42:24but we're not too sure exactly about the land, and who owns the land.
0:42:24 > 0:42:28I'm in contact with solicitors at the minute,
0:42:28 > 0:42:31just trying to find out the plans and if we do own the land.
0:42:31 > 0:42:33- Right.- That would be a bonus.
0:42:33 > 0:42:37- Right.- And make up for
0:42:37 > 0:42:38the state of the property,
0:42:38 > 0:42:41so we'll take it from there and see how it goes.
0:42:41 > 0:42:43Your little brother, has he seen it yet?
0:42:43 > 0:42:44I'm keeping him well away!
0:42:44 > 0:42:46- Are you?- For now.
0:42:46 > 0:42:49Because it's a 50-50 joint venture, isn't it?
0:42:49 > 0:42:55Yeah. Yeah. He trusts me with the buying of the properties, so
0:42:55 > 0:42:58it'll be me that takes the brunt of it when he sees it.
0:42:58 > 0:43:00Oh, dear. Well, listen, good luck with it.
0:43:00 > 0:43:05- I hope it isn't as bad as you fear and we look forward to seeing it. - Cheers.
0:43:08 > 0:43:13Well, Eric proving there that even experienced property developers
0:43:13 > 0:43:14occasionally make mistakes,
0:43:14 > 0:43:18and I think he would admit that he's made a slight error with this one.
0:43:18 > 0:43:23It comes down to that basic thing of viewing the property before you buy.
0:43:23 > 0:43:26If he'd seen it, he wouldn't have paid that extra money.
0:43:26 > 0:43:30Luckily for him, he's got a big enough portfolio that he can absorb those
0:43:30 > 0:43:34extra costs and in the long run it will probably turn out all right.
0:43:34 > 0:43:38However, in the short-term, he's got one heck of a job on his hands.
0:43:38 > 0:43:41How will he get on? You can find out later in the programme.
0:43:44 > 0:43:49I wonder if our two remaining sets of buyers' plans have all worked out,
0:43:49 > 0:43:51or has it gone a bit pear-shaped?
0:43:51 > 0:43:52Well, it's the moment of truth.
0:43:52 > 0:43:54Let's go back and find out.
0:43:56 > 0:43:58Time to head back to Motherwell now, in Scotland,
0:43:58 > 0:44:02where I took a long trek around the back, up some winding stairs,
0:44:02 > 0:44:04to a two-bed top-floor flat.
0:44:06 > 0:44:09Look at this hallway, it's nice and wide,
0:44:09 > 0:44:13it's nice and bright and the first thing that hits you is that...
0:44:13 > 0:44:16Hopefully it is original, actually. That is original parquet flooring there.
0:44:16 > 0:44:18It's all the way through the hallway.
0:44:18 > 0:44:22And the bonus was that the flooring continued throughout.
0:44:22 > 0:44:25With a bit of restoration, it could be a real asset,
0:44:25 > 0:44:27not to mention a money-saver.
0:44:28 > 0:44:33Someone who'd already been saving money was Keira and her husband Gerry.
0:44:33 > 0:44:36Having worked in Qatar for ten years, they were keen to invest here.
0:44:38 > 0:44:41Scotland was their choice as Gerry was from Glasgow.
0:44:41 > 0:44:42Keira hales from...
0:44:42 > 0:44:45- Where is it again?- I'm from Dublin originally.
0:44:45 > 0:44:46Oh, are you really?
0:44:46 > 0:44:47- Yeah.- Love Dublin.
0:44:47 > 0:44:49Been there many times.
0:44:49 > 0:44:51..Dublin. How could I forget?
0:44:51 > 0:44:54Maybe because I've been there lots of times
0:44:54 > 0:44:56and had a few pints of the black stuff.
0:44:56 > 0:45:00However, this flat needed more than a few tins of the white stuff
0:45:00 > 0:45:02to get it back in top condition
0:45:02 > 0:45:06and ready for Keira to rent out as soon as possible.
0:45:06 > 0:45:11The bathroom needs, in my view, total revision.
0:45:11 > 0:45:15Yes. Good on you. And how long is all the work going to take you to do?
0:45:15 > 0:45:17Six to eight weeks maximum.
0:45:17 > 0:45:21Six to eight weeks seemed like a decent timescale for a new kitchen,
0:45:21 > 0:45:25bathroom and redecoration, right?
0:45:25 > 0:45:29Well, we're actually heading back almost a full year later.
0:45:29 > 0:45:30Let's see how they've got on.
0:45:34 > 0:45:38Well, there's a fully tiled modern shower room that, without a bath,
0:45:38 > 0:45:40adds that little bit of extra space.
0:45:41 > 0:45:44The textured walls and ceilings are gone.
0:45:44 > 0:45:49Now every surface has been freshly plastered and painted.
0:45:49 > 0:45:53I'm sorry to say the parquet flooring has been covered over with laminate.
0:45:53 > 0:45:56But it does give the flat a fresh, modern look,
0:45:56 > 0:46:00which is most evident in the open-plan living room and kitchen area.
0:46:10 > 0:46:15The thing I'm most pleased to see gone is the dated kitchen units in the living area.
0:46:15 > 0:46:20Keira wants to let this flat and she's made it very rentable indeed.
0:46:27 > 0:46:31And having the same flooring throughout means the same look can flow into
0:46:31 > 0:46:33the two bedrooms.
0:46:38 > 0:46:39So all the work has been done.
0:46:39 > 0:46:42But given it's not a huge project,
0:46:42 > 0:46:45why did Keira go so far over her timescale?
0:46:45 > 0:46:49Because of the number of trades that were involved
0:46:49 > 0:46:53and the availability of tradesmen certainly caused delays.
0:46:53 > 0:46:59In terms of access to the flat, there is a rear stairwell,
0:46:59 > 0:47:03which is quite windy, and in terms of
0:47:03 > 0:47:08getting equipment and materials and things up here,
0:47:08 > 0:47:11I think that might have been off-putting, actually,
0:47:11 > 0:47:18and certainly would have impacted on people's interest in doing the work.
0:47:18 > 0:47:23I suppose it's about not letting those things frustrate you and just
0:47:23 > 0:47:29keep going, keep ploughing on and just don't let it get you down, really.
0:47:31 > 0:47:35When Keira did finally get a contractor, the work only took eight weeks,
0:47:35 > 0:47:38so her determination got her there in the end.
0:47:38 > 0:47:44I'm really pleased with the overall end result because it is much brighter
0:47:44 > 0:47:48and cleaner than it was when we got the property originally.
0:47:48 > 0:47:50I'm actually really pleased with the kitchen,
0:47:50 > 0:47:54because I just think it really makes the room look bigger.
0:47:54 > 0:48:01And I think it's much more user-friendly than it was,
0:48:01 > 0:48:03so I'm happy with that.
0:48:03 > 0:48:07But is Keira happy with the overall spend here?
0:48:07 > 0:48:11The original budget for the work was five grand and the work such as
0:48:11 > 0:48:15replastering throughout, moving the boiler from the attic to the kitchen,
0:48:15 > 0:48:17would have been a bit pricey.
0:48:17 > 0:48:22We probably were doing the flat to a higher spec than maybe a lot of
0:48:22 > 0:48:31landlords would and because we decided to invest in a boiler
0:48:31 > 0:48:35with a ten-year guarantee and quite a high quality boiler,
0:48:35 > 0:48:38that certainly upped the cost.
0:48:38 > 0:48:42The total cost has been 12,500.
0:48:42 > 0:48:47That added cost has taken their total investment here to 41,500,
0:48:47 > 0:48:49but Keira thinks it's money well spent.
0:48:50 > 0:48:55We take the view ourselves that we would prefer to have a longer term,
0:48:55 > 0:48:57more stable tenant,
0:48:57 > 0:49:01because they can see that you have an interest in the property
0:49:01 > 0:49:05and you've obviously taken some care in terms of getting it ready for them,
0:49:05 > 0:49:09which means, hopefully, they'll look after it and that,
0:49:09 > 0:49:12you know, that will continue on through the relationship.
0:49:12 > 0:49:17Keira is thinking along the right lines of being a successful landlord.
0:49:17 > 0:49:24Will two local estate agents think she's on the money with her 41,500 investment?
0:49:24 > 0:49:27I think the overall standard of finish is really good.
0:49:27 > 0:49:30I think they've used the right colour schemes.
0:49:30 > 0:49:34They've tried to make best use of the space they have
0:49:34 > 0:49:36and it's got clean lines,
0:49:36 > 0:49:39good quality appliances and everything's brand-new.
0:49:39 > 0:49:41The layout of the flat works quite well.
0:49:41 > 0:49:45Two beds, one of a reasonable size, one somewhat smaller,
0:49:45 > 0:49:49but I think for a two-bed at the price point we're looking at,
0:49:49 > 0:49:52I think it works quite well.
0:49:52 > 0:49:54Although Keira and Jerry aren't planning on selling,
0:49:54 > 0:49:58the price point that the agents placed on the flat was between £45,000
0:49:58 > 0:50:00and £50,000,
0:50:00 > 0:50:04which would give them a profit of between £3,000 and £8,500.
0:50:04 > 0:50:08But what about that crucial rental figure?
0:50:08 > 0:50:14I'd expect a rental valuation figure of £375 per calendar month.
0:50:14 > 0:50:16I'd suggest the rental market for this property
0:50:16 > 0:50:22would be somewhere in the region of 375 to perhaps £400 per calendar month.
0:50:22 > 0:50:24Well, I think those estimates are pretty standard.
0:50:24 > 0:50:31Actually, we've already got a tenant and we've achieved 375 a month,
0:50:31 > 0:50:34so that's about right, in my view.
0:50:34 > 0:50:37That works out at nearly an 11% yield,
0:50:37 > 0:50:41which is pretty good and means this project has been a success,
0:50:41 > 0:50:45even if it did take the best part of a year to complete.
0:50:45 > 0:50:48Now they've been back in the UK for a year, are they finally settled in?
0:50:48 > 0:50:51There are two things I still miss -
0:50:51 > 0:50:55the ease with which you can dry your hair and your laundry outside in
0:50:55 > 0:50:58Qatar in about 15 minutes.
0:50:58 > 0:51:01Whereas here, it's more of a challenge.
0:51:01 > 0:51:04But other than that, yes, we're settling in pretty much.
0:51:09 > 0:51:11We're heading back to the village of South Normanton,
0:51:11 > 0:51:14where I saw a two-bedroom end terrace that, from the outside,
0:51:14 > 0:51:16seemed to be in rough shape.
0:51:16 > 0:51:19And things weren't any better inside.
0:51:21 > 0:51:24Straight away, looking around, seeing all sorts of signs of damp, then,
0:51:24 > 0:51:27boom, you don't have to go very far to see a huge crack in the wall.
0:51:27 > 0:51:28You know...
0:51:28 > 0:51:29How far have I come?
0:51:29 > 0:51:31One, two...
0:51:31 > 0:51:35three feet. It's not making a very good first impression, is it?
0:51:45 > 0:51:49Every room revealed a new sign of subsidence, or damp,
0:51:49 > 0:51:53and the upstairs bathroom was only accessible via the second bedroom.
0:51:53 > 0:51:56The one positive, well, potential positive,
0:51:56 > 0:51:59was the garage that belonged to the previous owner,
0:51:59 > 0:52:02but it wasn't clear if they actually owned the land it was built on,
0:52:02 > 0:52:07or had right of access to it, which is why I was surprised that Eric,
0:52:07 > 0:52:11a vastly experienced developer with some 25 properties,
0:52:11 > 0:52:15decided to take a crack and spend £44,000 at auction.
0:52:15 > 0:52:18So why this particular house, then?
0:52:18 > 0:52:21I asked myself that exact question.
0:52:21 > 0:52:23- Did you see it before you bought it? - I didn't, no.
0:52:25 > 0:52:27- Naughty, naughty.- I know, yeah.
0:52:27 > 0:52:30Was it worse condition than you thought, when you saw it, then?
0:52:30 > 0:52:33Yeah, this is by far the worst one we've bought, so...
0:52:35 > 0:52:37We'll have our work cut out with this one, I think.
0:52:41 > 0:52:45The question still to be answered was if business partner and brother Jack
0:52:45 > 0:52:47would think the same thing when he saw it.
0:52:47 > 0:52:51Eric thought that it could be sorted for 20 grand and in an eight-week schedule.
0:52:51 > 0:52:53We are back a year and a half later.
0:53:11 > 0:53:15Wow, what a massive change from the old rundown property.
0:53:15 > 0:53:19The downstairs has been transformed from three separate rooms to a large
0:53:19 > 0:53:23open-plan dining-kitchen with a front room off it.
0:53:23 > 0:53:26The real work here has gone on underneath, though.
0:53:26 > 0:53:31The floor's been dug down and re-concreted with a full damp course.
0:53:31 > 0:53:36Those cracks have been taken care of and even improved the structure by
0:53:36 > 0:53:40inserting steel bars and resin into the walls.
0:53:40 > 0:53:44Upstairs, the layout has been much improved by moving the bathroom.
0:53:55 > 0:53:59A corridor has been created and the bathroom has now been moved into the
0:53:59 > 0:54:03middle, meaning the back bedroom is a good-sized double and the room to
0:54:03 > 0:54:05the front is the same.
0:54:07 > 0:54:08The new flooring,
0:54:08 > 0:54:11plastering and central heating have really brought this house bang
0:54:11 > 0:54:16up-to-date, and the neutral colour scheme is ideal for the rental market.
0:54:17 > 0:54:19It's not just inside that's changed, though.
0:54:19 > 0:54:24Eric and Jack have done the majority of the work with their three mates,
0:54:24 > 0:54:29but they had to get in specialists to re-render the exterior.
0:54:29 > 0:54:33And that old garage looks much improved - and is that access to it,
0:54:33 > 0:54:35as well?
0:54:35 > 0:54:38Well, that is a nice little bonus.
0:54:38 > 0:54:43Eric must be thanking his lucky stars Jack hasn't fallen out with him for buying it.
0:54:44 > 0:54:47When we first bought the property, obviously,
0:54:47 > 0:54:49we didn't even know what it looked like,
0:54:49 > 0:54:51so we didn't know if the garage was ours or not.
0:54:51 > 0:54:55We found out it is and the bit of land in front of it is also ours and we
0:54:55 > 0:54:59are trying to find out who owns the land on the right-hand side of the
0:54:59 > 0:55:02garage to see if we can probably build some properties on there in the future.
0:55:02 > 0:55:05Well, nothing ventured and nothing gained, I guess.
0:55:05 > 0:55:10Although buying blind is certainly not something I'd recommend.
0:55:10 > 0:55:12It was too cheap to turn down, really,
0:55:12 > 0:55:14and I thought it was worth the gamble.
0:55:14 > 0:55:18Until, er...until we came inside after it was purchased.
0:55:18 > 0:55:21And realised a lot of work needed to be done.
0:55:21 > 0:55:24The biggest challenge was the floor.
0:55:24 > 0:55:26We've never done that before in a property.
0:55:26 > 0:55:31And secondly, the chimney breast, also. We'd never done that, either.
0:55:31 > 0:55:35However, we both make them work.
0:55:35 > 0:55:37I think there's always something to learn.
0:55:37 > 0:55:40A different property brings a new challenge, sometimes.
0:55:40 > 0:55:43It's good to see that, despite all the extra work this house has given to them,
0:55:43 > 0:55:45they've picked up new skills along the way.
0:55:45 > 0:55:47But it's taken a very long time,
0:55:47 > 0:55:51as it's been just three months shy of two years since they bought the
0:55:51 > 0:55:52property at auction.
0:55:54 > 0:55:59Normally, we do a property in about six to eight weeks.
0:55:59 > 0:56:04This property was on the top end of that, maybe nine weeks,
0:56:04 > 0:56:07but it was all spread out over a long period of time because we couldn't
0:56:07 > 0:56:10actually get here in a big block period.
0:56:10 > 0:56:14When we bought this property we bought one at the same auction and we had
0:56:14 > 0:56:17properties we were currently working on before that, as well,
0:56:17 > 0:56:22and then we bought some more after this one, which we decided to do first,
0:56:22 > 0:56:26as they'd be quicker to get the rent in than this one would be.
0:56:27 > 0:56:31That added time has meant they've lost rental income on this property and
0:56:31 > 0:56:36it's also cost them 25 grand instead of that 20 grand target budget,
0:56:36 > 0:56:39taking the spend here to 69,000.
0:56:39 > 0:56:41Let's see if two local estate agents
0:56:41 > 0:56:43think the work they've put in has been worth it.
0:56:45 > 0:56:47The general condition of the property is very good.
0:56:47 > 0:56:49They've done it to a nice specification.
0:56:49 > 0:56:51They've modernised it throughout,
0:56:51 > 0:56:53keeping it very neutral, very plain,
0:56:53 > 0:56:58very simple, but have done a really nice finish throughout.
0:56:58 > 0:57:00For me, the selling point of this property, without a doubt,
0:57:00 > 0:57:04is the quality of the finish, having new kitchens, new bathrooms,
0:57:04 > 0:57:06it's ready to move into, it's like a new home.
0:57:06 > 0:57:09Eric and Jack normally aim for a 10% yield,
0:57:09 > 0:57:14which would mean they'd need to command a monthly rental figure of £575 per calendar month.
0:57:14 > 0:57:16What do the agents think?
0:57:19 > 0:57:23The rental value of the property would be £475 per calendar month.
0:57:23 > 0:57:28I would offer this property for around £475 per calendar month.
0:57:28 > 0:57:32Yeah, 475 is what we thought it would go for, as well.
0:57:32 > 0:57:35They are just 2% off that 10% target.
0:57:35 > 0:57:41Even sales valuations of £85,000 on their £69,000 investment won't sway
0:57:41 > 0:57:47them from keeping this as part of their now over 30-rental-strong portfolio.
0:57:47 > 0:57:50With so many properties, is there any sign of stopping?
0:57:50 > 0:57:52I think we're too young to even
0:57:52 > 0:57:55think about stopping now.
0:57:55 > 0:57:57We do get along on most things.
0:57:57 > 0:57:59Obviously, we have little squabbles here and there,
0:57:59 > 0:58:01but obviously I always come out on top!
0:58:06 > 0:58:12Well, we hope you enjoyed those stories of properties that went under the hammer on today's show.
0:58:12 > 0:58:15Yes, we'll have more thrills and spills right here on Homes Under The Hammer.
0:58:15 > 0:58:17- See you soon.- Goodbye.