0:00:02 > 0:00:03Hello and welcome to the programme.
0:00:03 > 0:00:06Now before you go investing in property, you really need to make
0:00:06 > 0:00:08sure you know about the local property market.
0:00:08 > 0:00:10Yes, get that research done.
0:00:10 > 0:00:12And with so much of it online now,
0:00:12 > 0:00:13you can do it from the comfort of own home.
0:00:13 > 0:00:16Yes, and when you've done that, you view the property and you've
0:00:16 > 0:00:18read the legal pack, of course,
0:00:18 > 0:00:21get ready and get organised to go down to your local property auction.
0:00:47 > 0:00:51Well, there are still some serious bargains to be had when the hammer falls.
0:00:51 > 0:00:54Yes, however, there are potential banana skins along the way everywhere.
0:00:54 > 0:00:58There certainly are. Let's find out if today's buyers managed
0:00:58 > 0:01:00to grab one of those bargains.
0:01:01 > 0:01:05First up, I'm in Brompton in Kent and you've got to be resilient on this show.
0:01:05 > 0:01:07Locked patio door!
0:01:08 > 0:01:10Not to worry, eh?
0:01:12 > 0:01:16And in Workington, Cumbria, I'm learning you need to be strict too.
0:01:16 > 0:01:20And next you'll be telling me, even with a law degree, that you didn't read the legal pack?
0:01:21 > 0:01:23Whilst in Great Barr, West Birmingham,
0:01:23 > 0:01:26you've got to expect the unexpected on this show.
0:01:27 > 0:01:31Wow, that, that surprised me. I wasn't, I wasn't expecting that at all.
0:01:33 > 0:01:35All these properties have been sold at auction.
0:01:35 > 0:01:38And we'll find out who bought them and what they paid
0:01:38 > 0:01:40when they went under the hammer.
0:01:40 > 0:01:41It's yours, sir.
0:01:47 > 0:01:51Today I'm in Kent, and in an area around Gillingham.
0:01:51 > 0:01:54But other than that, I'm slightly at a loss to know what to call this place.
0:01:54 > 0:01:57# And I don't even know your name... #
0:02:00 > 0:02:03So this was called New Brompton, or possibly Old Brompton.
0:02:03 > 0:02:05But now, the Old Brompton has become Gillingham,
0:02:05 > 0:02:07or is it the other way around?
0:02:07 > 0:02:11Well, I don't know, anyway... Here I am, wherever I am, to look at this.
0:02:11 > 0:02:16It's a two-bed end terrace, guide price at 135-£140,000.
0:02:16 > 0:02:19Wherever it is, let's have a look inside.
0:02:19 > 0:02:22I like the fact it's set back from the road, and there's an
0:02:22 > 0:02:26unusual round window, which is a little bit different.
0:02:26 > 0:02:28But that front garden could do with a bit of a tidy up.
0:02:30 > 0:02:33So, nice little porch area to start off with,
0:02:33 > 0:02:34and then into the main body of the house.
0:02:34 > 0:02:36Stairs up to the bedrooms there,
0:02:36 > 0:02:40and then just kind of like wiggle through the entrance area,
0:02:40 > 0:02:41I'll explore down there in a second.
0:02:41 > 0:02:44But through into your main living room, I guess.
0:02:44 > 0:02:48It's a through room, presumably dining room on the other side there.
0:02:48 > 0:02:52Immediately, it doesn't smell like it's damp,
0:02:52 > 0:02:57but obviously has that sort of immediate look of a house of an era.
0:02:57 > 0:03:00We've got the polystyrene ceiling tiles, which definitely need to go.
0:03:00 > 0:03:02We've got the kind of furnishings that...
0:03:02 > 0:03:05A major refurbishment, but not structural.
0:03:05 > 0:03:07Just cosmetic required.
0:03:07 > 0:03:10And so, yeah, I'm liking what I'm seeing, actually.
0:03:10 > 0:03:13So, a bit of storage area under the stairs,
0:03:13 > 0:03:15then through into the kitchen.
0:03:15 > 0:03:18A bit like the rest of the house so far,
0:03:18 > 0:03:21dated and in need of modernisation.
0:03:21 > 0:03:25And straightaway, I'm getting that feeling, is this one of those
0:03:25 > 0:03:28houses where you just try and remove as many of the
0:03:28 > 0:03:31internal walls as you possibly can to really open up the space?
0:03:31 > 0:03:33It would certainly be dramatic if you did that,
0:03:33 > 0:03:35because it's a great little house.
0:03:35 > 0:03:37It just needs... definitely playing with.
0:03:37 > 0:03:41Because through the kitchen, you've got this little lean-to area, there,
0:03:41 > 0:03:44so that's quite nice. Yeah, just knock as many of these walls
0:03:44 > 0:03:45out as you possibly can.
0:03:45 > 0:03:49Now, I'm not saying wave a sledgehammer around, willy-nilly.
0:03:49 > 0:03:52Obviously there's a limit to what walls can and can't go.
0:03:52 > 0:03:55And you do need to get advice from an expert on that.
0:03:55 > 0:03:58But I think this is a case where less rooms would
0:03:58 > 0:04:00definitely make more sense.
0:04:00 > 0:04:03# I've got too many
0:04:03 > 0:04:08# And that's wrong for you... #
0:04:11 > 0:04:13Well, you have to give it to this little house.
0:04:13 > 0:04:17It's packing a lot of things into a little space, that's for sure.
0:04:17 > 0:04:18Up here, two bedrooms.
0:04:18 > 0:04:22They're a good size. You've also got the bathroom and loo down that way.
0:04:22 > 0:04:26But again, it feels a bit cramped partly because it's got so much
0:04:26 > 0:04:27stuff in it at the moment perhaps.
0:04:27 > 0:04:31But again, I wonder if there's internal changes you could make.
0:04:31 > 0:04:36But all in all, full-size, a lot of property, I think, for the money.
0:04:38 > 0:04:41Decoratively, this house is rather stuck in another era,
0:04:41 > 0:04:45and those pesky polystyrene tiles are everywhere and need to go.
0:04:45 > 0:04:48But these are two good-sized bedrooms nevertheless.
0:04:48 > 0:04:52While the bathroom, well, that will need the full works.
0:04:52 > 0:04:55Suite, tiles, shower, the lot.
0:04:55 > 0:04:59If there are signs that the house hasn't been touched for a while inside,
0:04:59 > 0:05:01outside it's even more apparent.
0:05:01 > 0:05:05Well, out the back of the property, there is a reasonably sized garden.
0:05:05 > 0:05:09But as you can see, it is totally overgrown with brambles.
0:05:09 > 0:05:12So, actually, to get back inside...
0:05:12 > 0:05:15I've got to destroy this rather large bramble barricade.
0:05:17 > 0:05:18So, there you go. No problem.
0:05:20 > 0:05:21Nothing is going to get in my way.
0:05:23 > 0:05:26Nothing apart from a locked patio.
0:05:28 > 0:05:30Not to worry, eh?
0:05:30 > 0:05:36# I'm on the outside looking in... #
0:05:38 > 0:05:43Well, this house might be trapped in the past, but what does a local
0:05:43 > 0:05:46estate agent think about it and its potential?
0:05:46 > 0:05:49It's an ex-local authority property, which are always solidly built.
0:05:49 > 0:05:52They have good proportion sized rooms.
0:05:52 > 0:05:55Garden needs a little bit of TLC.
0:05:55 > 0:05:57Obviously, the rest of house needs TLC as well,
0:05:57 > 0:06:00but when it's renovated, the demand here is massive.
0:06:00 > 0:06:04Renovated to a high standard, it would sell very, very quickly.
0:06:04 > 0:06:09The house was guided at 135-£140,000.
0:06:09 > 0:06:14So what resale value could it command in this high demand area?
0:06:14 > 0:06:16Once renovated, in my opinion,
0:06:16 > 0:06:19the property should be marketed for offers in excess of £200,000.
0:06:19 > 0:06:21And rental wise?
0:06:21 > 0:06:25I would market this property at £850 per calendar month.
0:06:26 > 0:06:31Well, yes, it needs a bit of sorting out, but intrinsically, a
0:06:31 > 0:06:34nice house in a good area with great connections.
0:06:34 > 0:06:36Yep, everything to like.
0:06:36 > 0:06:38Let's see who bought it when it went under the hammer.
0:06:43 > 0:06:47The guide of 135 to £140,000.
0:06:47 > 0:06:48Where will we start me on this one?
0:06:48 > 0:06:50Can we say bottom of the guide, 135,000?
0:06:50 > 0:06:52135 on the way.
0:06:52 > 0:06:55138, can I say 138?
0:06:55 > 0:06:57140. 142.
0:06:57 > 0:07:00And four, 144.
0:07:00 > 0:07:02And six, 146.
0:07:02 > 0:07:03And eight, 148.
0:07:03 > 0:07:05150, fill her up.
0:07:05 > 0:07:08So the Brompton house was proving popular.
0:07:08 > 0:07:11We rejoined at the auction with a bidding at 174,000.
0:07:11 > 0:07:13174, he says, "Yes."
0:07:13 > 0:07:14175?
0:07:14 > 0:07:16175 now.
0:07:16 > 0:07:18175, is that the bid?
0:07:18 > 0:07:20175. And six?
0:07:20 > 0:07:22Threw your catalogue away. I'm taking that's a no.
0:07:22 > 0:07:24£175,000 we have then.
0:07:24 > 0:07:25176 for anybody else.
0:07:25 > 0:07:31With yourself for the first time at 175, second time at 175,
0:07:31 > 0:07:34third and final time, £175,000.
0:07:34 > 0:07:36Sold, madam.
0:07:36 > 0:07:41So, for £175,000, the two-bed house was bought by Hannah.
0:07:41 > 0:07:45Hannah works as a university quality officer and this is her first
0:07:45 > 0:07:47property purchase.
0:07:51 > 0:07:52Hannah, lovely to meet you.
0:07:52 > 0:07:55Congratulations, tell me why you wanted to buy this place.
0:07:55 > 0:07:58Well, my main reason was because it's closer to work.
0:07:58 > 0:08:01- OK.- At the moment, I'm commuting from London all the way into
0:08:01 > 0:08:02- Canterbury most days.- Wow.
0:08:02 > 0:08:04And, this is much more convenient being in Kent.
0:08:04 > 0:08:06So is this going to be your home?
0:08:06 > 0:08:07- Yes.- Oh, brilliant!
0:08:07 > 0:08:10I know! Apparently, it's not the usual thing to do -
0:08:10 > 0:08:12buy a home to live in at auction.
0:08:12 > 0:08:15Well, well, well, yeah... I don't know what the proportion is,
0:08:15 > 0:08:16but a lot of people don't.
0:08:16 > 0:08:18- But why ever not?- The auctioneer was quite surprised.
0:08:18 > 0:08:21Oh, right. So, so what took you to the auction, then?
0:08:21 > 0:08:25I have been looking for somewhere to live for about a year.
0:08:25 > 0:08:26I've probably viewed about 100.
0:08:26 > 0:08:28- 100?- ..while looking for this.
0:08:28 > 0:08:32And I never found the one that was either quite right or the ones I did
0:08:32 > 0:08:36find that were right, everyone else wanted it as well, so I wasn't successful.
0:08:36 > 0:08:37I saw this come up at auction,
0:08:37 > 0:08:39and it was actually my dad that suggested it.
0:08:39 > 0:08:41And it was definitely worth the wait.
0:08:41 > 0:08:42Yeah, well done for persevering.
0:08:45 > 0:08:49No, it's not easy getting on the property ladder these days.
0:08:49 > 0:08:51Even if you can get a mortgage,
0:08:51 > 0:08:53finding a property you can afford is tricky.
0:08:54 > 0:08:58But by sheer persistence, Hannah has finally made that first step.
0:09:02 > 0:09:06But now she's got the house, what are her plans for it?
0:09:06 > 0:09:10Obviously, the polystyrene ceilings have definitely got to go.
0:09:10 > 0:09:15The wallpaper, carpets, and we're just going to give it a newer,
0:09:15 > 0:09:16- fresher look.- Right.
0:09:16 > 0:09:20But no major modifications? No internal walls or anything like that?
0:09:20 > 0:09:24We're going to investigate what ones we could and couldn't knock down and
0:09:24 > 0:09:26see how much work that would be.
0:09:26 > 0:09:31- Who's the "we"?- Me, my family, my other half as well.
0:09:31 > 0:09:33- Right.- So, we'll be working on it together.
0:09:33 > 0:09:35And have you got building experience, any of you?
0:09:35 > 0:09:37Or is anyone in the family got it?
0:09:37 > 0:09:39Everyone else has building experience apart from me.
0:09:39 > 0:09:42- Oh, right, OK.- So...- That's OK.
0:09:42 > 0:09:44I'm, I suppose, project manager.
0:09:44 > 0:09:48But, everyone else knows more what they're doing than I do.
0:09:48 > 0:09:50So you're going to draft in their help though?
0:09:50 > 0:09:52Yeah. Definitely. Everyone's really keen to come in and get involved.
0:09:52 > 0:09:57That's great. So, what's the budget for what you plan to do?
0:09:57 > 0:10:00I think we're looking at about 5-10,000.
0:10:00 > 0:10:04But it will depend on what we do eventually, decide to do with the house.
0:10:04 > 0:10:06So I think, because we're moving in as well,
0:10:06 > 0:10:08it's a kind of a case of see how we get on.
0:10:08 > 0:10:11So is the idea to clear it out, presumably,
0:10:11 > 0:10:14and then move in and do stuff room by room?
0:10:14 > 0:10:16Or are you going to sort of do it all and then move in?
0:10:16 > 0:10:19No, exactly. We're going to move in as soon as possible,
0:10:19 > 0:10:20and then start work.
0:10:20 > 0:10:23- Room by room.- So what's the timescale for moving in?
0:10:23 > 0:10:25Probably in around about a month, hopefully.
0:10:25 > 0:10:29OK, and then in terms of the timescale for doing the work?
0:10:29 > 0:10:32I mean... I think we will be looking about three to four months until
0:10:32 > 0:10:34everything is a good standard.
0:10:34 > 0:10:36OK, what about the garden?
0:10:36 > 0:10:40The garden, is not something that I would particularly want to be too
0:10:40 > 0:10:41involved with.
0:10:42 > 0:10:45But we were actually going to get started with that this weekend.
0:10:45 > 0:10:47Have you got people who could help you with that as well?
0:10:47 > 0:10:49Yes, thankfully, I've got some keen gardeners.
0:10:49 > 0:10:52So having got it now, how do feel?
0:10:52 > 0:10:56Really looking forward to getting started on the work and being able
0:10:56 > 0:10:58- to move in.- Yeah, brilliant. Well, wish you well with that.
0:10:58 > 0:11:00- Good luck.- Thank you.
0:11:00 > 0:11:02Looking forward to see how it all turns out.
0:11:02 > 0:11:06Well, how great that Hannah has found a place that she can call home.
0:11:06 > 0:11:10And it just goes to show that all sorts of properties come up at
0:11:10 > 0:11:13auction that will suit all kinds of buyers.
0:11:13 > 0:11:15How will she get on sorting it out?
0:11:15 > 0:11:18You can find out later in the show.
0:11:24 > 0:11:29This is the town of Workington, sited at the mouth of the River Derwent.
0:11:29 > 0:11:33Back in 18th century, with a mining of iron ore, and coal locally,
0:11:33 > 0:11:38Workington grew into a major industrial town and port.
0:11:38 > 0:11:42These days, Workington is the main shopping centre for West Cumbria.
0:11:44 > 0:11:47Just a few minutes walk from the centre of town is the property I'm
0:11:47 > 0:11:49here to see.
0:11:49 > 0:11:54It's a two-bed mid-terraced property with a guide price of £40-50,000.
0:11:54 > 0:11:56And this is it. I have to say,
0:11:56 > 0:11:59I love the stone frontage and that bay window.
0:11:59 > 0:12:01I'm looking forward to looking inside.
0:12:03 > 0:12:04So, what do we have?
0:12:05 > 0:12:08We have a bit of a blank canvas already.
0:12:08 > 0:12:11Yeah, looks like work's definitely begun here.
0:12:11 > 0:12:13First off, you have a reception room.
0:12:13 > 0:12:16That lovely bay window gives it a nice feeling.
0:12:16 > 0:12:18You have a fireplace which has been torn out,
0:12:18 > 0:12:21but you could make a real feature of it again.
0:12:21 > 0:12:26And then through to a second reception room, a decent size.
0:12:26 > 0:12:29I'm a big fan of open plan living, so you could think about...
0:12:29 > 0:12:30It's a loadbearing wall.
0:12:30 > 0:12:31It's not a small job,
0:12:31 > 0:12:35but you could take that down and make this into a really big area.
0:12:35 > 0:12:39Now this looks wet. These bricks look very wet.
0:12:39 > 0:12:42And actually, to the touch, they are very wet.
0:12:42 > 0:12:46So you absolutely want to, without delay, find out what the cause is there.
0:12:46 > 0:12:49Whether there's been some sort of leak coming through the roof.
0:12:49 > 0:12:51My guess would be it's the guttering.
0:12:51 > 0:12:56It looks like someone started to tackle the problem by stripping this
0:12:56 > 0:12:59back to the bare bones. And, talking of bare...
0:12:59 > 0:13:02# Look for the bare necessities
0:13:02 > 0:13:04# The simple bare necessities
0:13:04 > 0:13:08# Forget about your worries and your strife... #
0:13:09 > 0:13:11It needs some bare necessities.
0:13:11 > 0:13:15Some essential heating, a rewire, and definitely some plastering.
0:13:15 > 0:13:19Now, a bare necessity I've not seen yet is a kitchen
0:13:19 > 0:13:22which, it has to be said, is, well, bare.
0:13:22 > 0:13:25No units or appliances.
0:13:25 > 0:13:27Yep, bare.
0:13:27 > 0:13:30As a size of kitchen, it is pretty small.
0:13:30 > 0:13:33But, I've changed my mind since I came across the kitchen.
0:13:33 > 0:13:37So instead of taking down the walls, separating the two reception rooms,
0:13:37 > 0:13:39I'd take down this wall instead.
0:13:39 > 0:13:44Because, a lot of people like the idea now of a kitchen that feels
0:13:44 > 0:13:46modern and spacious, room for dining,
0:13:46 > 0:13:50but you'd still leave yourself another room downstairs.
0:13:50 > 0:13:53Not everyone wants a vast, spacious ground floor.
0:13:53 > 0:13:55You'd have another room for a snug area.
0:13:55 > 0:13:58Maybe to watch your TV.
0:13:58 > 0:14:02This property feels like it needs a team of people to turn it from a
0:14:02 > 0:14:05blank canvas into a work of art,
0:14:05 > 0:14:09which could be costly in terms of material and labour.
0:14:09 > 0:14:13Surely this house has something in it aside from bricks and water.
0:14:13 > 0:14:18Upstairs, and straight ahead into a bathroom.
0:14:18 > 0:14:21Now, the only real giveaway it is a bathroom,
0:14:21 > 0:14:23is because there's a lone toilet.
0:14:23 > 0:14:24It looks kind of lonely.
0:14:24 > 0:14:28Yeah, literally lonely. Otherwise, everything is gone.
0:14:28 > 0:14:31But look at this. I love a wee bit of detective work.
0:14:31 > 0:14:33Not that it takes much in a place like this,
0:14:33 > 0:14:36but if you're thinking that looks like a former fireplace, it is.
0:14:36 > 0:14:40If you're also thinking, "odd place to have a fireplace in your loo,"
0:14:40 > 0:14:44you're spot on. But this originally would have been the third bedroom
0:14:44 > 0:14:46because your toilet would have been outside.
0:14:46 > 0:14:48Somebody has brought the toilet in up here,
0:14:48 > 0:14:51put in the frosted glass for a bit of privacy,
0:14:51 > 0:14:54and yet it's a huge bathroom area.
0:14:54 > 0:14:59Plenty of room for a walk-in shower, separate bath, yeah.
0:14:59 > 0:15:01Loads of potential here.
0:15:04 > 0:15:08# All by myself
0:15:10 > 0:15:16# Don't want to be all by myself... #
0:15:16 > 0:15:20Hopefully the lonesome loo will have some company soon.
0:15:20 > 0:15:22Time to take a look at the bedrooms.
0:15:22 > 0:15:27Bedroom number one is not a bad size, but it's pretty unremarkable.
0:15:27 > 0:15:30But at least it still has a plaster on the walls.
0:15:30 > 0:15:35And it's the plaster that has my attention in bedroom number two.
0:15:35 > 0:15:37There's a few cracks appearing,
0:15:37 > 0:15:40which you want to make sure is nothing too problematic
0:15:40 > 0:15:41like subsidence.
0:15:41 > 0:15:43It needs a lot of graft,
0:15:43 > 0:15:47but it could be brought up to scratch and be really quite nice.
0:15:47 > 0:15:51Cracks can seem alarming, but sometimes fine or hairline
0:15:51 > 0:15:55cracks appear due to stresses like vibration or temperature change.
0:15:55 > 0:15:57Those shouldn't generally be a worry,
0:15:57 > 0:16:00however, cracks more than 3mm wide,
0:16:00 > 0:16:05especially if they're around doors and windows are worth investigating
0:16:05 > 0:16:08to ascertain if there is ongoing movement.
0:16:08 > 0:16:10There might be other signs.
0:16:10 > 0:16:14Check if doors or windows stick, if skirting boards are uneven,
0:16:14 > 0:16:19or if floors slope. Bottom line, it's always best to get a survey.
0:16:19 > 0:16:23And outside, there are more worrying signs that suggest all may not be
0:16:23 > 0:16:27well and that someone may have started investigations.
0:16:27 > 0:16:29At least, that's what I'm hoping.
0:16:29 > 0:16:33Although this house is reasonably spacious, this backyard isn't.
0:16:33 > 0:16:36So this property guided at 40-£50,000,
0:16:36 > 0:16:39is in need of some remedial work.
0:16:39 > 0:16:43Time to ask a local estate agent along to give us his thoughts.
0:16:43 > 0:16:46It's definitely fashionable in this day and age,
0:16:46 > 0:16:48to have a big socialising area.
0:16:48 > 0:16:52So to get that kitchen and dining room is definitely where I would
0:16:52 > 0:16:56target, because I know that will stand out to a bigger audience.
0:16:56 > 0:16:58It seems we both agree.
0:16:58 > 0:17:00Open plan living is the way to go.
0:17:00 > 0:17:05With quite a lot to do, what budget should the new owners set themselves?
0:17:06 > 0:17:09So I believe to bring this property up to a good standard,
0:17:09 > 0:17:13it's going to cost in the region of around £25,000.
0:17:13 > 0:17:15It's obvious that there is a lot of work needed.
0:17:15 > 0:17:22So what could this house guided at 40-£50,000 be worth once renovated?
0:17:22 > 0:17:27I believe that this property is worth in the region of £95,000-£105,000
0:17:27 > 0:17:31if the property is completed to a high standard.
0:17:32 > 0:17:36So, taking into account the substantial renovation costs,
0:17:36 > 0:17:39there's a good bit of wiggle room for profit,
0:17:39 > 0:17:42even if you got it at the top end of that guide price.
0:17:42 > 0:17:44What could it rent for?
0:17:44 > 0:17:47On the rental market, I believe that this property,
0:17:47 > 0:17:52up to a high standard, would achieve £450-£500 per calendar month.
0:17:55 > 0:17:58Well, this is a pretty typical mid-terraced house.
0:17:58 > 0:18:02The layout does work as it is, but if you opened up the downstairs
0:18:02 > 0:18:06gave it some open plan living, it could be really nice and it just
0:18:06 > 0:18:11needs a large dose of TLC to bring it up to scratch and then it can be a lovely home.
0:18:11 > 0:18:14Let's find out who wanted to give it the kiss of life,
0:18:14 > 0:18:16when it went under the hammer.
0:18:16 > 0:18:17This terraced house,
0:18:17 > 0:18:21attractive stone front elevation near the town centre and all
0:18:21 > 0:18:23amenities. Start me, then, at what?
0:18:23 > 0:18:25Middle of the guide, 45?
0:18:25 > 0:18:26Anybody here, £45,000?
0:18:26 > 0:18:2840?
0:18:28 > 0:18:3040 bid with the proxy.
0:18:30 > 0:18:33At 40 bid? At 40 bid. Are we done?
0:18:33 > 0:18:40At £40,000, 41, 42, 43, 44, 45, 46, 47, 48.
0:18:40 > 0:18:4147 to you.
0:18:41 > 0:18:43After a rather tentative start,
0:18:43 > 0:18:46bidding picked up and the guide price was surpassed.
0:18:46 > 0:18:48We rejoin at £61,000.
0:18:48 > 0:18:5061, new bidders.
0:18:50 > 0:18:5162. Is that a bid, sir?
0:18:51 > 0:18:5362, 63.
0:18:55 > 0:18:5663 bid, 64?
0:18:57 > 0:19:01Here at 63. With you sir, at £63,000.
0:19:01 > 0:19:03It's against you and it's against you.
0:19:03 > 0:19:06First time, then.
0:19:06 > 0:19:08Second time, at £63,000.
0:19:08 > 0:19:11Third time, selling away.
0:19:11 > 0:19:12Yours, sir.
0:19:13 > 0:19:18A successful bid of £63,000 was made by Ethan.
0:19:18 > 0:19:20Ethan, I'm sure will have read the legal pack,
0:19:20 > 0:19:22because he has a law qualification.
0:19:22 > 0:19:24Yes, I'm sure he will have.
0:19:24 > 0:19:28And he's bought this property along with business partners,
0:19:28 > 0:19:29Tim and David.
0:19:29 > 0:19:31I met Ethan to find out what their plans are.
0:19:34 > 0:19:35Ethan, hello.
0:19:35 > 0:19:37- Hello.- Pleased to meet you.- Pleased to meet you.
0:19:37 > 0:19:41So tell me about you, is this your first property renovation?
0:19:41 > 0:19:43Currently, we have a business going.
0:19:43 > 0:19:44Quite a new business,
0:19:44 > 0:19:46where we are purchasing a number of properties in the area.
0:19:46 > 0:19:51This is our third property and we are trying to do them up and rent
0:19:51 > 0:19:54them out in the area and just develop a profile.
0:19:54 > 0:19:58We specialise in electrical, plumbing, and gas works.
0:19:58 > 0:20:01So, fortunately, we are going to be able to do a lot of the work ourselves.
0:20:01 > 0:20:04This sounds like a pretty perfect business model,
0:20:04 > 0:20:07combining two businesses.
0:20:07 > 0:20:10This project will go towards a rental portfolio,
0:20:10 > 0:20:13while they can use staff from their 50-strong gas, plumbing,
0:20:13 > 0:20:17and electrical operation to do the work.
0:20:17 > 0:20:20It looks like a bit of work has been done already.
0:20:20 > 0:20:23Yes, it has, yeah. We have stripped it back to the brick.
0:20:23 > 0:20:26We have taken out the kitchen, the bathroom.
0:20:26 > 0:20:28And is there anything that's worrying you particularly?
0:20:28 > 0:20:31Because you have done a bit of stripping back, have you found anything?
0:20:31 > 0:20:35We have, yes. The property's stood vacant for about two years now,
0:20:35 > 0:20:36while it's been going on to auction.
0:20:36 > 0:20:39And when we stripped the property back, we noticed that the gutters,
0:20:39 > 0:20:43our project manager, Stuart, noticed that the gutters had been
0:20:43 > 0:20:46overflowing for that time as they were blocked.
0:20:46 > 0:20:48So actually, the area behind me,
0:20:48 > 0:20:50there's been quite a bit of water damage
0:20:50 > 0:20:53as it's been coming down the walls.
0:20:53 > 0:20:55What did I say? Guttering.
0:20:55 > 0:20:59On Homes Under The Hammer, we see so many properties that end
0:20:59 > 0:21:02up at auction because of poor maintenance.
0:21:02 > 0:21:06Mind you, there are another couple of things we like to go on about.
0:21:06 > 0:21:08Do you feel a, "tsk, tsk," coming on?
0:21:08 > 0:21:11We didn't get to view the house properly.
0:21:11 > 0:21:13It was kind of a peeking through the window.
0:21:13 > 0:21:16And next you'll be telling me, Ethan, with a law degree,
0:21:16 > 0:21:17that you didn't read the legal pack.
0:21:17 > 0:21:19- I did read the legal pack.- Oh, good.
0:21:19 > 0:21:23Yeah, fortunately that was the first thing I picked up when I went in there.
0:21:23 > 0:21:27Just to basically see if there was any, any rights over the lands and
0:21:27 > 0:21:29fortunately there wasn't.
0:21:29 > 0:21:30Nothing stood out to myself.
0:21:32 > 0:21:34OK, no row for Ethan.
0:21:34 > 0:21:38The business partners and renovation team all seem to have a handle on
0:21:38 > 0:21:39this project already.
0:21:39 > 0:21:43So, what are these bare old bones of a property going to be treated to?
0:21:44 > 0:21:46New kitchen, new bathroom.
0:21:46 > 0:21:48They were in a really poor state.
0:21:48 > 0:21:52We've stripped it back to the brick in places,
0:21:52 > 0:21:56so we will have to plasterboard and seal everywhere.
0:21:56 > 0:21:59We're looking at lining the walls, and getting,
0:21:59 > 0:22:02rather than paintbrush and paint, we're going to get a professional
0:22:02 > 0:22:04company in to spray the whole property.
0:22:04 > 0:22:09It's a new longer-lasting, longer finished, more durable technique.
0:22:09 > 0:22:11It's something that we've been dealing with.
0:22:11 > 0:22:14A number of our suppliers recommend, so that's the plan.
0:22:14 > 0:22:17- It's interesting.- Yes, again not much maintenance.
0:22:17 > 0:22:21After it's on there, it keeps very clean, it doesn't take marks as easy.
0:22:21 > 0:22:25So it should be already in high spec for someone to move into and enjoy.
0:22:25 > 0:22:27The only thing about really high spec,
0:22:27 > 0:22:28is it comes with a really high budget.
0:22:28 > 0:22:31- Yes, that's true.- What is your budget?
0:22:31 > 0:22:35Fortunately, because we're keeping everything in house,
0:22:35 > 0:22:38our budget is £10,000 to invest on the property.
0:22:40 > 0:22:44As they are renting the property out, they're not going to change the
0:22:44 > 0:22:47layout as the expenditure wouldn't be recouped in the rental.
0:22:47 > 0:22:50They've given themselves four months to complete,
0:22:50 > 0:22:52so will Ethan be hands-on?
0:22:54 > 0:22:58I'll help where I can. I'll always be here, if the lads do need help,
0:22:58 > 0:22:59I will be there.
0:22:59 > 0:23:04But no, we have a real competent qualified team of skilled workers.
0:23:04 > 0:23:06I can't wait to see the results.
0:23:06 > 0:23:09- Thank you very much.- Best of luck. - Thank you.- Thanks, Ethan.- Cheers.
0:23:11 > 0:23:16Ethan has a brilliant business model with a cracking team of experts just
0:23:16 > 0:23:18waiting to go and blitz in there.
0:23:18 > 0:23:19In fact, they're so keen,
0:23:19 > 0:23:22they were barely out of the auction house and they started work.
0:23:22 > 0:23:24Yes, but that ten grand budget,
0:23:24 > 0:23:28will even they manage to turn a house around that needs pretty much
0:23:28 > 0:23:30everything done within that?
0:23:30 > 0:23:31You can find out later in the show.
0:23:35 > 0:23:37Still to come in Great Barr, Birmingham,
0:23:37 > 0:23:39I roll up my sleeves and get stuck in.
0:23:41 > 0:23:42Excuse me.
0:23:45 > 0:23:47Whilst in Workington, Cumbria,
0:23:47 > 0:23:50it looks like all the hard work might have paid off.
0:23:50 > 0:23:51We're absolutely over the moon.
0:23:51 > 0:23:54- Yeah, brilliant.- Couldn't be happier.- No.
0:24:00 > 0:24:03Back to Kent now, and the popular area of Brompton.
0:24:05 > 0:24:10It was here back in December 2015, that I had a look at this two-bed
0:24:10 > 0:24:13mid-terraced ex-local authority property
0:24:13 > 0:24:19that had a guide price of 135-£140,000.
0:24:19 > 0:24:21It was in a bit of a time warp
0:24:21 > 0:24:25and was full of the previous owner's belongings.
0:24:25 > 0:24:28But under all that, there was definite promise.
0:24:30 > 0:24:35A major refurbishment, but not structural, just cosmetic required.
0:24:35 > 0:24:37And so, yeah, I'm liking what I'm seeing actually.
0:24:38 > 0:24:42A bramble filled garden, plus polystyrene tiles,
0:24:42 > 0:24:45were just two of the big jobs that needed to be sorted here.
0:24:45 > 0:24:47Yes, there was plenty of work to be done.
0:24:50 > 0:24:53But that didn't put the bidders off on auction day.
0:24:53 > 0:24:55£175,000, sold, madam.
0:24:57 > 0:25:03Bought for £175,000 by 25-year-old university quality officer, Hannah.
0:25:06 > 0:25:10This was Hannah's first property, and it had been a long time coming.
0:25:10 > 0:25:12# Searching though it just ain't fair... #
0:25:14 > 0:25:16What took you to the auction, then?
0:25:16 > 0:25:20I had been looking for somewhere to live for about a year.
0:25:20 > 0:25:22I've probably viewed about 100.
0:25:22 > 0:25:23- 100?- While looking for this.
0:25:23 > 0:25:26And I never found the one that was either quite right,
0:25:26 > 0:25:30or the ones I did find that were right, everyone else wanted as well.
0:25:30 > 0:25:33So I wasn't successful.
0:25:33 > 0:25:36# Just have a little patience... #
0:25:36 > 0:25:40Bought for herself and her partner, Mitch, Hannah wanted to modernise
0:25:40 > 0:25:44the property from top to bottom with a little help from family and friends.
0:25:46 > 0:25:50She envisioned the work would take from three to four months and at a
0:25:50 > 0:25:51cost of between five and 10,000.
0:25:55 > 0:25:59Well, it's almost two years later, and first impressions are looking good.
0:25:59 > 0:26:01But let's step inside.
0:26:25 > 0:26:27We say it a lot on homes under the hammer,
0:26:27 > 0:26:30but this is a real transformation.
0:26:30 > 0:26:33And unrecognisable from what it once was.
0:26:33 > 0:26:37# And have a little patience... #
0:26:39 > 0:26:42It's gone from cluttered and dated to modern and chic.
0:26:45 > 0:26:48Hannah's search for her first home is finally over.
0:26:49 > 0:26:52So, the first thing that we needed to get done with the house was to
0:26:52 > 0:26:55replace the boiler and get the heating system up and running.
0:26:56 > 0:26:59The second priority was to get all of the polystyrene down off the
0:26:59 > 0:27:03ceiling and all of the fastened wallpaper and carpet up and out.
0:27:03 > 0:27:06So once that was done, we re-carpeted throughout.
0:27:06 > 0:27:11We also put in a new bathroom upstairs and a new shower room downstairs.
0:27:11 > 0:27:15We put in, well, my dad very kindly fitted a whole new kitchen
0:27:15 > 0:27:18for us downstairs and we've got laminate flooring in the kitchen
0:27:18 > 0:27:20and the conservatory.
0:27:20 > 0:27:23And then we've gone for vinyl flooring in both the bathrooms.
0:27:23 > 0:27:26Good old dad. The bathroom upstairs is really lovely.
0:27:33 > 0:27:37The two double bedrooms are now spacious and contemporary.
0:27:43 > 0:27:47Outside all those brambles have been cleared to reveal not one,
0:27:47 > 0:27:52but two garden sheds and a garden path to boot. Not bad at all.
0:27:53 > 0:27:56My family have been really helpful, and also my partner and his family
0:27:56 > 0:27:59have been excellent with getting everything done.
0:27:59 > 0:28:01And we couldn't have really done it without them.
0:28:01 > 0:28:04Overall, managing the project has been a really positive experience
0:28:04 > 0:28:07and I've been really lucky because I've had so many people around to
0:28:07 > 0:28:09help, that everything's run really smoothly.
0:28:09 > 0:28:12So one of the biggest challenges overall of the project
0:28:12 > 0:28:14was clearing the house.
0:28:14 > 0:28:19We had furniture, curtains, old clothes, newspapers, records.
0:28:19 > 0:28:22And so it took a long time to get everything clear, quite a lot of
0:28:22 > 0:28:24donations to charities, selling some things online,
0:28:24 > 0:28:27and also quite a lot of trips to the dump.
0:28:27 > 0:28:30When it came to her timescale, Hannah initially thought she could
0:28:30 > 0:28:35live in the house within a month to save on the commute and to get the
0:28:35 > 0:28:37place completed in another three to four months.
0:28:37 > 0:28:41Well, we know what it's like, life gets in the way.
0:28:41 > 0:28:43With some work and travel commitments on the way,
0:28:43 > 0:28:45that didn't quite pan out.
0:28:47 > 0:28:52It took eventually around about six months before it was at a standard
0:28:52 > 0:28:54where we were happy to move in and we had the kitchen and the bathroom
0:28:54 > 0:28:56and everything sorted.
0:28:56 > 0:28:59Overall for the project, we budgeted 5-10,000.
0:28:59 > 0:29:03And it came out at around £7,000 in total.
0:29:03 > 0:29:05We managed to save quite a lot of money,
0:29:05 > 0:29:08because we very kindly donated quite a lot of stuff
0:29:08 > 0:29:11and managed to get quite a few bargains along the way.
0:29:15 > 0:29:19So, Hannah's total investment here is 182,000.
0:29:19 > 0:29:22And while she has no plans to sell, or rent,
0:29:22 > 0:29:26it will still be interesting to hear the thoughts of two local estate agents.
0:29:26 > 0:29:29Starting with the agent who saw it originally.
0:29:31 > 0:29:32The changes are great.
0:29:32 > 0:29:36I mean, all the redecoration, everything has been done.
0:29:36 > 0:29:37Just refurbished, it's very, very nice.
0:29:37 > 0:29:41Yeah, I think it's really good. I think in terms of, you know,
0:29:41 > 0:29:43what the properties go for in this kind of area,
0:29:43 > 0:29:45obviously there's always a ceiling price for property,
0:29:45 > 0:29:47so you don't want to go too mad.
0:29:47 > 0:29:49So I think what they've done, you know, suits the area and suits the
0:29:49 > 0:29:51style of the property, definitely.
0:29:51 > 0:29:54Selling point is the fact that it's got new everything in here.
0:29:54 > 0:29:57So a bathroom, kitchen, downstairs shower room.
0:29:57 > 0:30:00Refurbed, absolutely brilliant. Someone will walk in and love it.
0:30:00 > 0:30:04Well, the only people who'll be loving this property are Hannah and her partner.
0:30:04 > 0:30:10But let's hear what value they've potentially added to their new home.
0:30:10 > 0:30:17The resale of the property would be between 215 and £220,000.
0:30:17 > 0:30:22And the rental would be between 825 and £850 per calendar month.
0:30:22 > 0:30:24If I were to market this on the sales market,
0:30:24 > 0:30:29I think it should go on the market for offers in excess of £220,000.
0:30:29 > 0:30:33If I were to market for the lettings market, I think it should go on the
0:30:33 > 0:30:37market for around about £875 per calendar month.
0:30:37 > 0:30:41It's nice to know the rental and resale values,
0:30:41 > 0:30:45but it hasn't changed my plans to live here for the foreseeable future,
0:30:45 > 0:30:48but, obviously, it'll be nice to know further down the line when
0:30:48 > 0:30:50eventually we do come to sell.
0:30:50 > 0:30:52Based on those higher evaluations,
0:30:52 > 0:30:56that's an increase in value on her home of £38,000
0:30:56 > 0:30:59or a potential yield of nearly 6%.
0:30:59 > 0:31:02But this, of course, was bought to be a home.
0:31:02 > 0:31:06Overall, it's been really positive and it's really nice to see the
0:31:06 > 0:31:09outcome and it's been worth the effort that we've all put in.
0:31:17 > 0:31:21Sitting five miles north of the UK's second-largest city, Birmingham,
0:31:21 > 0:31:25is the altogether more rural area of Great Barr.
0:31:25 > 0:31:28Boasting great transport links to its busy neighbour,
0:31:28 > 0:31:31and home to some excellent schools,
0:31:31 > 0:31:34Great Barr is a sought-after and popular area to live in.
0:31:37 > 0:31:41As you can see, I'm on this very busy main road.
0:31:41 > 0:31:43But that does mean that this property,
0:31:43 > 0:31:47has great links to the centre of West Bromwich and Birmingham.
0:31:47 > 0:31:52And here it is. And before we start, we have got off street parking.
0:31:52 > 0:31:54It's a detached property.
0:31:54 > 0:31:59It's got three bedrooms and a guide price of 89-£99,000.
0:31:59 > 0:32:02And it doesn't look too bad. Let's check out inside.
0:32:13 > 0:32:14OK, we're in and...
0:32:16 > 0:32:19..dated. Very, very dated.
0:32:19 > 0:32:23Lots of brown. You've got the stairs here, going up to the bedrooms.
0:32:23 > 0:32:25Nice flowery brown carpet.
0:32:25 > 0:32:29You've got the second reception room here.
0:32:29 > 0:32:31It's all very late '70s decor.
0:32:32 > 0:32:35You've got a good-sized lounge living room here.
0:32:35 > 0:32:38Dual aspect as well, you've got your window there
0:32:38 > 0:32:42and double doors going to the back garden there.
0:32:42 > 0:32:45It's all... You can see where the pictures have been on the wall.
0:32:45 > 0:32:48That's the last time this place got decorated.
0:32:48 > 0:32:51And through there, you've got a very big kitchen.
0:32:51 > 0:32:53Huge kitchen, actually.
0:32:53 > 0:32:55But again, that would all have to come out.
0:32:55 > 0:32:58I do like the layout, I do like the configuration.
0:32:58 > 0:33:00Lots to work with.
0:33:00 > 0:33:02Saying that, I'll tell you what.
0:33:04 > 0:33:06I'm going to get started anyway.
0:33:06 > 0:33:09Might as well give them a hand, while I'm here.
0:33:09 > 0:33:10HE WHISTLES
0:33:10 > 0:33:11Excuse me.
0:33:14 > 0:33:18Now you can't say we're not helpful here on Homes Under The Hammer.
0:33:18 > 0:33:20Anyway, back to the property.
0:33:20 > 0:33:25Just off the kitchen is a good sized garage, plus a downstairs toilet.
0:33:25 > 0:33:30Although I'm not sure alfresco ablutions are popular these days.
0:33:30 > 0:33:32So, plenty to do down here.
0:33:32 > 0:33:34But plenty of potential too.
0:33:35 > 0:33:39OK, upstairs we have the three bedrooms and a bathroom.
0:33:39 > 0:33:41As I look around,
0:33:41 > 0:33:45I can see upstairs is in very similar condition to downstairs.
0:33:45 > 0:33:48There's the papers off the walls, signs of damp,
0:33:48 > 0:33:50there's plaster missing off the walls as well.
0:33:50 > 0:33:53So, by the way, apart from that, apart from that,
0:33:53 > 0:33:56two good-sized bedrooms just here at the front of the property.
0:33:56 > 0:33:58Sort of mirroring each other.
0:33:58 > 0:34:01A smaller, a very small third bedroom there,
0:34:01 > 0:34:02and your family bathroom.
0:34:02 > 0:34:07There's a lot of work that needs to be done to this property to just
0:34:07 > 0:34:10modernise it again and get it back to where it needs to be.
0:34:10 > 0:34:15I'm thinking to myself, as that bedroom there is incredibly small,
0:34:15 > 0:34:19could you extend that way into the back garden a bit more?
0:34:19 > 0:34:22Single extension would give you a kitchen diner
0:34:22 > 0:34:25and if you were to do a double extension,
0:34:25 > 0:34:30you might be able to create a bigger third one or even four bedrooms if
0:34:30 > 0:34:31you were to do it that way,
0:34:31 > 0:34:35but there's lots of options and lots of things to think about.
0:34:35 > 0:34:39# I got so many things to do
0:34:39 > 0:34:41# I got work to do... #
0:34:43 > 0:34:47You'd have to have a think about the costs and potential added value of
0:34:47 > 0:34:49an extension.
0:34:49 > 0:34:51And it depends on what you want the house for.
0:34:51 > 0:34:54But there is plenty of potential here.
0:34:54 > 0:34:55And even more so outside.
0:34:58 > 0:35:01All right, the house is one thing,
0:35:01 > 0:35:04but I had to bring you out here and show you this.
0:35:04 > 0:35:06Look at the size of this back garden.
0:35:06 > 0:35:08It goes on forever.
0:35:08 > 0:35:10It's actually a third of an acre.
0:35:11 > 0:35:15I do start to think to myself, could you develop this,
0:35:15 > 0:35:20could you put maybe a small bungalow at the end of that garden?
0:35:20 > 0:35:22Then you have to think about how do you get to it?
0:35:22 > 0:35:23Access to the bungalow.
0:35:23 > 0:35:26You could knock down the garage,
0:35:26 > 0:35:28and you get access down the side of the house.
0:35:28 > 0:35:31Then you've got to think about planning permission.
0:35:31 > 0:35:34Then you've got to think about will the neighbours be happy with you
0:35:34 > 0:35:36building at the bottom of the garden. It's a possibility.
0:35:36 > 0:35:39You know, anything is possible, but if it were me,
0:35:39 > 0:35:42I'd concentrate on the house.
0:35:42 > 0:35:45I would put a bit of heart and soul into the house, modernise it,
0:35:45 > 0:35:49make it look really nice. Brighten it up a bit and get this looking
0:35:49 > 0:35:50as pretty as you possibly can.
0:35:50 > 0:35:54I think together, this could be a really nice project.
0:35:55 > 0:35:58With a little hard work and imagination,
0:35:58 > 0:36:02this could be such an amazing family home with a stunning garden.
0:36:02 > 0:36:06For me, it would be a shame to overdevelop it.
0:36:06 > 0:36:11# Give a little love and you can get a little love of your own... #
0:36:11 > 0:36:14But what does a local estate agent think of this property guided
0:36:14 > 0:36:16at 89-£99,000?
0:36:19 > 0:36:25It's got all the potential that you would want to either modernise the
0:36:25 > 0:36:27house out and keep is as three-bedroom.
0:36:27 > 0:36:32Or even contemplate extending the property to give you a lot more
0:36:32 > 0:36:34accommodation if you wanted it.
0:36:34 > 0:36:38Does an agent think a bungalow in the back garden is feasible?
0:36:38 > 0:36:42You may get away with perhaps putting a bungalow or maybe even two
0:36:42 > 0:36:45small bungalows at the end of the garden.
0:36:45 > 0:36:50The agent thinks a refurbished three-bed property could get up to
0:36:50 > 0:36:56300 grand and a four bed would be around 375-£385,000.
0:36:56 > 0:36:58What about those bungalows he talked about?
0:36:58 > 0:37:02If the new owner was going to sort of redevelop the back land and put
0:37:02 > 0:37:05two bungalows, small bungalows on there,
0:37:05 > 0:37:11I would envisage the price for them to be in the region of 180-£200,000 each.
0:37:13 > 0:37:17This house is dark and dingy and there are signs of damp.
0:37:17 > 0:37:21I think below the surface, there's a really nice home to be had here.
0:37:21 > 0:37:26And don't forget, that back garden is huge and a really nice selling point.
0:37:26 > 0:37:30That guide price should create lots of interest.
0:37:30 > 0:37:33Let's find out just how much interest there was
0:37:33 > 0:37:34when it went under the hammer.
0:37:38 > 0:37:42Vacant freehold detached property, a fine substantial property there.
0:37:42 > 0:37:44On about a third of an acre of ground.
0:37:44 > 0:37:47120 for that.
0:37:47 > 0:37:50Yes, sir, thank you, 120. 130, a lady.
0:37:50 > 0:37:51140 at the back, yes.
0:37:51 > 0:37:52140, 150.
0:37:52 > 0:37:55160, 160 to 606.
0:37:55 > 0:37:57165, I am bid.
0:37:57 > 0:37:59170 bid, first bidder.
0:37:59 > 0:38:02170, 175, madam?
0:38:02 > 0:38:05Plenty of interest in this lot, with the bids flying in.
0:38:05 > 0:38:10We leave the action and return with the bids at £226,000.
0:38:11 > 0:38:16At £226,000 then for 361, for the first time.
0:38:17 > 0:38:19Second time? Third and the very last time.
0:38:19 > 0:38:23You're both out along here, at £226,000.
0:38:23 > 0:38:25Yours in at 361.
0:38:25 > 0:38:27One, two, three, are you bidding, sir?
0:38:29 > 0:38:30He will have another one.
0:38:30 > 0:38:31228. Make it 230, sir.
0:38:31 > 0:38:35I have 230, do not be beaten.
0:38:35 > 0:38:38228,000 on that, 230 on you.
0:38:38 > 0:38:41232, sir. Well, you've run a good race and thank you.
0:38:41 > 0:38:45361, 230, one, two, three.
0:38:45 > 0:38:47It's yours, sir.
0:38:47 > 0:38:50Thank you very much indeed. Number 321, and thank you all.
0:38:53 > 0:38:56Selling for well over the guide price at 230 grand
0:38:56 > 0:39:02to cousins and business partners, Ajaz here on the left and Tariq.
0:39:02 > 0:39:05Both have experience in renovating properties,
0:39:05 > 0:39:07but this be their first project together.
0:39:07 > 0:39:09- Ajaz, nice to meet you.- Nice to meet you.
0:39:09 > 0:39:12- Tariq, nice to meet you too, sir. - Nice to meet you too.
0:39:12 > 0:39:13Congratulations as well.
0:39:13 > 0:39:15- Thank you.- So who actually found this property?
0:39:16 > 0:39:19I found it. But we were together when we came to see it.
0:39:19 > 0:39:21And we were together in auction as well.
0:39:21 > 0:39:23OK. So what are the roles going to be?
0:39:23 > 0:39:26Who's going to take which role?
0:39:26 > 0:39:30He's going to be doing all the management and getting all the
0:39:30 > 0:39:34people in and I'll probably do a little bit of the financing and, yeah.
0:39:34 > 0:39:36- OK, the brains.- Well...
0:39:36 > 0:39:38- You're the brains!- Yeah, if you want to call it that.
0:39:40 > 0:39:41Why did you want to buy this place?
0:39:41 > 0:39:46It's got the garden. The garden was the main reason.
0:39:46 > 0:39:49- Amazing back garden.- Yeah, a third of an acre and there is a lot of
0:39:49 > 0:39:53potential to develop it - depending on planning.
0:39:53 > 0:39:55What are your plans, then? What are your plans for the house?
0:39:55 > 0:39:59We want to actually apply for planning for flats
0:39:59 > 0:40:00and make 18 flats there.
0:40:00 > 0:40:05- Really?- If we can get that.- So you want to get rid of this completely?
0:40:05 > 0:40:06Yeah, we want to demolish it.
0:40:06 > 0:40:09Demolish this and then start from the back.
0:40:09 > 0:40:11Wow, that's sort of surprised me.
0:40:11 > 0:40:13I wasn't expecting that at all.
0:40:13 > 0:40:16So, 18, you said?
0:40:16 > 0:40:20That's... You've got to create a lot of parking for 18 individual properties.
0:40:20 > 0:40:24The way we came out with it was we make three on one side and
0:40:24 > 0:40:28three on one side. You give a passageway in between.
0:40:28 > 0:40:30- OK.- And you just make three floors.
0:40:30 > 0:40:33So you have six on one floor, six, six and pretty much straightforward.
0:40:33 > 0:40:36- OK, so...- You leave the land at the front, you'll have parking and
0:40:36 > 0:40:40you'll also have some garden and you'll have some landscape, so...
0:40:40 > 0:40:44If it comes out at the end of it, it should be quite a nice picture.
0:40:44 > 0:40:48Let's talk about that. What would your budget be if you get planning?
0:40:48 > 0:40:51We've got an estimate of, like, 50,000 a flat, so, you know, I mean,
0:40:51 > 0:40:54if there is ten or 18 or whatever we get, then, I mean,
0:40:54 > 0:40:57depending on that, it might be 8-900,000.
0:40:57 > 0:40:59- OK.- Yeah.- To develop 18 flats?
0:40:59 > 0:41:02Do up and complete, yeah.
0:41:02 > 0:41:05- That is a big old budget. - That's right, yeah.
0:41:05 > 0:41:08And how long will it take to create all those flats
0:41:08 > 0:41:09and your parking and your...?
0:41:09 > 0:41:11We think it might take, like, eight,
0:41:11 > 0:41:13nine months up to a year depending on, obviously,
0:41:13 > 0:41:15we're going to need finance and everything.
0:41:15 > 0:41:17And how much are you expecting to get back from that?
0:41:17 > 0:41:19- Well...- If you were to sell them?
0:41:19 > 0:41:24Nearly two million. Because 120, 130 each flat and it's 18 flats there,
0:41:24 > 0:41:27so we're expecting a 50% return.
0:41:27 > 0:41:29# Put a spanner in the works
0:41:29 > 0:41:32# You know you've got to step up your game to make it to the top... #
0:41:32 > 0:41:35I've got to admire the pair's ambition.
0:41:35 > 0:41:38They've never done a project of this scale.
0:41:38 > 0:41:41They don't have planning permission and they don't even have finance
0:41:41 > 0:41:44secured yet. So there's plenty of work ahead.
0:41:44 > 0:41:49They plan to sell the properties if the work goes ahead and, thankfully,
0:41:49 > 0:41:50they have a plan B.
0:41:52 > 0:41:55Let's say you don't get the plans and it doesn't go through and your
0:41:55 > 0:41:58first dream of putting flats here doesn't go through.
0:41:58 > 0:42:03- What would you do then?- We'd just be doing this house up,
0:42:03 > 0:42:05maybe turn it into a four, five bedroom house.
0:42:05 > 0:42:07Extend it a little bit and...
0:42:07 > 0:42:10Or maybe put, like, one or two houses, again if we get planning,
0:42:10 > 0:42:12to put one or two houses at the back.
0:42:12 > 0:42:14And give a side entrance.
0:42:14 > 0:42:16OK. Are you confident that you'll get the planning?
0:42:16 > 0:42:18Are you confident you'll get your dream?
0:42:18 > 0:42:21Yeah, definitely. Before we bought the property, we've done some work
0:42:21 > 0:42:25on that, done some research on that and then, yeah, we will get that.
0:42:25 > 0:42:28Just in case, if we don't, then we've got the next plan
0:42:28 > 0:42:29is obviously to build this house,
0:42:29 > 0:42:33build another one at the back, use the land and then sell them both.
0:42:33 > 0:42:36Well, I wish you good luck. I've got my fingers crossed for the both of you.
0:42:36 > 0:42:38- Thank you.- Ajaz, all the best. - Thank you very much.
0:42:38 > 0:42:42- Tariq, good luck to you.- Thank you. - Wish you all the best.- Thank you very much.
0:42:42 > 0:42:46Tariq and Ajaz firstly surprised me with their plans.
0:42:46 > 0:42:48You cannot fault their ambition, though.
0:42:48 > 0:42:49What's going to end up here?
0:42:49 > 0:42:52Is it going to be a house? Is going to be an extension?
0:42:52 > 0:42:53Is it going to be bungalows?
0:42:53 > 0:42:57Or will it be plan A, 18 flats?
0:42:57 > 0:43:00I've no idea. You can find out how they get on later in the programme.
0:43:04 > 0:43:08So, we've found out how one property fared, but what about the other two?
0:43:08 > 0:43:11Yes, were their renovations on time and on budget?
0:43:11 > 0:43:12Let's find out.
0:43:14 > 0:43:16Back to Workington, Cumbria, now,
0:43:16 > 0:43:22where I saw this terraced house is guided at 40-£50,000.
0:43:22 > 0:43:24Although it appeared to be just a bare shell,
0:43:24 > 0:43:27you didn't have to look far to find some problems.
0:43:28 > 0:43:32These bricks look very wet and, actually, to the touch,
0:43:32 > 0:43:34they are very wet.
0:43:35 > 0:43:40There were a few signs of damage to the walls outside and cracks inside
0:43:40 > 0:43:43and that was just about all that was in it.
0:43:43 > 0:43:45Well, except for a lone loo.
0:43:46 > 0:43:50# Well I've been lonely for so long
0:43:50 > 0:43:54# Don't seem like happiness will come along... #
0:43:55 > 0:43:59Certainly, Ethan and his business partners, Tim and David,
0:43:59 > 0:44:02were happy with their £63,000 purchase.
0:44:02 > 0:44:06The three business partners had two strands to their business plan -
0:44:06 > 0:44:09one in renting properties and the other...
0:44:09 > 0:44:13We specialise in electrical, plumbing and gas works,
0:44:13 > 0:44:16so, fortunately, we are going to be able to do a lot of the works ourselves.
0:44:19 > 0:44:24Having all that inside help allowed them to budget ten grand to
0:44:24 > 0:44:27completely renovate this home, ready for someone to move into
0:44:27 > 0:44:28in four months' time.
0:44:28 > 0:44:33Have their team of handymen managed to give this place the magic touch?
0:44:33 > 0:44:37Well, we're back bang on time scale to take a look.
0:44:37 > 0:44:41# Feeling your magic, magic, magic
0:44:41 > 0:44:43# You can do magic, baby... #
0:44:45 > 0:44:49Well, as some might say in Scotland, this is magic!
0:44:49 > 0:44:52From a bare shell to a light, bright, airy home
0:44:52 > 0:44:54with all the mod cons.
0:44:54 > 0:44:57# You can do magic, baby... #
0:44:59 > 0:45:02The kitchen was bare of cupboards before, but now, wow!
0:45:02 > 0:45:05A high spec kitchen in neutral colours with nice,
0:45:05 > 0:45:07warm wood flooring and worktops.
0:45:12 > 0:45:16Ethan and business partner, Tim, are going to tell us how they worked
0:45:16 > 0:45:17their magic.
0:45:19 > 0:45:24So, what we've done was we got a local supplier of kitchens to give
0:45:24 > 0:45:26us some feedback on utilising the space.
0:45:26 > 0:45:31We agreed the plan, the layout, which allowed our electrician and
0:45:31 > 0:45:36joiners to come up with a plan between them to execute the job correctly.
0:45:36 > 0:45:40We had a very good project manager in charge of the job in Stuart this
0:45:40 > 0:45:43time as well, and he does a very, very good job of chasing all the
0:45:43 > 0:45:47guys up and making sure they're in when they're supposed to be and a
0:45:47 > 0:45:50very, very good job of managing the whole project for us.
0:45:50 > 0:45:53While Stuart's managed the project on site,
0:45:53 > 0:45:57Tim handled any off-site duties like material and labour while Ethan took
0:45:57 > 0:45:58care of the admin.
0:46:00 > 0:46:02When I spoke to Ethan last time,
0:46:02 > 0:46:05he said they were going to get contractors in to spray the walls.
0:46:05 > 0:46:07How did that go?
0:46:07 > 0:46:10We worked with a local contractor.
0:46:10 > 0:46:14They're a company who specialise in actually spraying the rooms.
0:46:14 > 0:46:18Two benefits of this - it gives a nice finish to the walls and also it
0:46:18 > 0:46:22speeds the process up. They'd done the full house in one day,
0:46:22 > 0:46:26which then allowed our lads to get in and continue with the work.
0:46:28 > 0:46:30One day for a whole house?
0:46:30 > 0:46:31That's amazing.
0:46:31 > 0:46:33And the result is brilliant.
0:46:33 > 0:46:36Not just downstairs, but in the two bedrooms.
0:46:36 > 0:46:40There's not a crack to be seen after the re-plastering,
0:46:40 > 0:46:42so good job all round.
0:46:42 > 0:46:46The new carpets will be nice and cosy for tootsies stepping out of
0:46:46 > 0:46:51bed and, as for the toilet, it now has the partners you'd expect.
0:46:51 > 0:46:55# Let's get together again
0:46:55 > 0:46:58# All you need is here to stay... #
0:46:59 > 0:47:02This bathroom has come together nicely.
0:47:02 > 0:47:06They've stripped out an old vented cylinder, creating more space which
0:47:06 > 0:47:09allowed them to install both a bath and a shower.
0:47:12 > 0:47:15There is one distinctive thing missing from this house, though -
0:47:15 > 0:47:17those damp brick walls!
0:47:19 > 0:47:22We looked out at the gable end, obviously where all the weather
0:47:22 > 0:47:26comes into and we saw that there were quite a few cracks in the render.
0:47:26 > 0:47:30So to safeguard the future, we decided to take all the render off,
0:47:30 > 0:47:33put a scaffold up and re-render and re-dash.
0:47:34 > 0:47:38Pebble dash is when stones are thrown or dashed into the render
0:47:38 > 0:47:40before it dries.
0:47:40 > 0:47:43You may not think it's pretty, but it does weather well.
0:47:43 > 0:47:46While they knew they had to tackle the render,
0:47:46 > 0:47:48they had one big surprise in store.
0:47:49 > 0:47:53So, when we came into here, we lifted the carpet and the
0:47:53 > 0:47:58floorboards and we found an absolute disaster. It was full of water.
0:47:58 > 0:48:00With the house being at the bottom of the hill,
0:48:00 > 0:48:03the ground outside is higher than what is in here.
0:48:03 > 0:48:06So basically, the water was coming from outside in.
0:48:06 > 0:48:11What we had to do was tank all the walls to stop water penetrating
0:48:11 > 0:48:14inside and that allowed us to put new joists in with a new floor.
0:48:15 > 0:48:17I am getting a chance to show off today.
0:48:17 > 0:48:19Tanking, in case you didn't know,
0:48:19 > 0:48:23is a liquid coating that is used to form a waterproof barrier.
0:48:23 > 0:48:27Anyway, now that we've got all the technical stuff out of the way,
0:48:27 > 0:48:29are they still planning to rent this house out?
0:48:29 > 0:48:32I'm going to be renting this one myself.
0:48:32 > 0:48:35I hope you've done a background check on him, Tim!
0:48:35 > 0:48:39Yeah, we've done a background check on him and everything seems to be fine.
0:48:39 > 0:48:43If Ethan's taking it on, it shows that he's more than happy with what
0:48:43 > 0:48:47we've done and the standard that's been done.
0:48:47 > 0:48:50I would agree. Now, did they find it hard sticking
0:48:50 > 0:48:51to that ten grand budget?
0:48:52 > 0:48:55Once we got the floorboards up and realised what was happening outside,
0:48:55 > 0:49:00we knew we weren't going to keep the budget and we actually came in about 15,000.
0:49:02 > 0:49:03With that overspend,
0:49:03 > 0:49:07they have invested a total of £78,000 in this property.
0:49:07 > 0:49:09Has it all been worth it?
0:49:09 > 0:49:13We invited along two local estate agents to see what they made of this
0:49:13 > 0:49:16terrace, starting with the agent who saw it last time.
0:49:18 > 0:49:20So, the vendors have done a fantastic renovation job.
0:49:20 > 0:49:24This property is ready for a buyer to move straight in or a potential
0:49:24 > 0:49:27tenant to move straight into.
0:49:27 > 0:49:29I think the property's been done to a really high spec and it will work
0:49:29 > 0:49:31for either rental or sales.
0:49:32 > 0:49:36If they did decide to sell, what kind of price could they be asking?
0:49:36 > 0:49:39On the open market, I would expect this property to be selling for in
0:49:39 > 0:49:41the region of £95,000.
0:49:41 > 0:49:45I would say in the region of 95-£105,000.
0:49:45 > 0:49:47We're absolutely over the moon.
0:49:47 > 0:49:50- Yeah, brilliant. Couldn't be happier.- No.
0:49:50 > 0:49:55At that top estimate of £105,000, that would give them a potential
0:49:55 > 0:49:59profit of 27 grand minus taxes and fees.
0:49:59 > 0:50:01Now, what rental figures could they expect?
0:50:02 > 0:50:05If we were to place this property on the rental market,
0:50:05 > 0:50:10I would say in the region of £450-485 per calendar month,
0:50:10 > 0:50:12excluding bills.
0:50:12 > 0:50:16On the rental market, this property would achieve between £525 per
0:50:16 > 0:50:19calendar month and £550 per calendar month.
0:50:19 > 0:50:23Hopefully, Ethan will be getting a good deal from his colleagues.
0:50:23 > 0:50:25Or maybe they'll be charging him more?
0:50:25 > 0:50:27As we said, we've done it up to a very good standard and that's
0:50:27 > 0:50:30hopefully what we were looking to get back as a return.
0:50:30 > 0:50:32Well, Ethan's not giving anything away.
0:50:32 > 0:50:38£550 would be a yield of 8%, so what's next for this partnership?
0:50:39 > 0:50:42There's a saying that we say at work - you can't admire your past,
0:50:42 > 0:50:46you've got to look for the next pass, so I would love a holiday in
0:50:46 > 0:50:51Barbados but currently we're undertaking our next property.
0:50:56 > 0:50:58We head back now to North West Birmingham
0:50:58 > 0:51:00in the area of Great Barr.
0:51:03 > 0:51:08It was here where I first had a look around this three-bed detached property.
0:51:08 > 0:51:11It had a guide price of 85-95 grand.
0:51:13 > 0:51:17It was dated and dingy, but it was well proportioned downstairs.
0:51:19 > 0:51:22Upstairs, it was a bit disappointing as two of the bedrooms were a good
0:51:22 > 0:51:25size, but the third was very small.
0:51:25 > 0:51:28It got me thinking about an extension.
0:51:28 > 0:51:31Single extension would give you a kitchen diner
0:51:31 > 0:51:35and if you were to do a double extension,
0:51:35 > 0:51:40you might be able to create a bigger third one or even four bedrooms.
0:51:40 > 0:51:42And there was plenty of room to do it.
0:51:42 > 0:51:45A third of an acre which gave me another idea.
0:51:45 > 0:51:51Could you put maybe a small bungalow at the end of that garden?
0:51:51 > 0:51:52It's a possibility.
0:51:52 > 0:51:54- # Possibility - Possibility
0:51:54 > 0:51:56- # Possibility - Possibility
0:51:56 > 0:51:59- # Possibility - Possibility
0:51:59 > 0:52:02- # Possibility - Possibility... #
0:52:02 > 0:52:06Two people who could see the possibility here were cousins and
0:52:06 > 0:52:11first-time business partners, Tariq, here on the right, and Ajaz.
0:52:11 > 0:52:14They bought the property for almost two and a half times the guide price
0:52:14 > 0:52:17at 230 grand.
0:52:17 > 0:52:21So, that suggested to me they weren't going to stick at this place
0:52:21 > 0:52:23being a three-bed. What are your plans, then?
0:52:23 > 0:52:24What are your plans for the house?
0:52:24 > 0:52:28We want to actually apply for planning for flats
0:52:28 > 0:52:30and make 18 flats there.
0:52:30 > 0:52:32- Really?- If we can get that, yeah.
0:52:32 > 0:52:34So you want to get rid of this completely?
0:52:34 > 0:52:38- Yeah, we want to demolish it. - Demolish this and then start from the back.
0:52:38 > 0:52:40Wow, that's sort of surprised me.
0:52:40 > 0:52:42I wasn't expecting that at all.
0:52:42 > 0:52:43# How did you do it?
0:52:43 > 0:52:45# Didn't see it in your eyes
0:52:45 > 0:52:47# Your approach didn't let me know
0:52:47 > 0:52:49# What a surprise
0:52:49 > 0:52:51# You just came into my life
0:52:51 > 0:52:53# What a surprise... #
0:52:55 > 0:53:00This ambitious duo had never done a project of this size before and
0:53:00 > 0:53:02hadn't secured planning or the funds for the build,
0:53:02 > 0:53:07which they estimated at £800-900,000.
0:53:07 > 0:53:09But they weren't lacking in confidence.
0:53:11 > 0:53:13That is a big old budget.
0:53:13 > 0:53:16- That's right, yeah.- And how much are you expecting to get back from that?
0:53:16 > 0:53:17- Well...- If you were to sell them?
0:53:17 > 0:53:21Nearly 2 million. Because 120, 130 each flat,
0:53:21 > 0:53:25and there's 18 flats there, so we're expecting a 50% return.
0:53:26 > 0:53:29Well, a year and a half later and, I'm afraid,
0:53:29 > 0:53:33it's not gone how they'd first hoped.
0:53:34 > 0:53:38# I guess I'll have to change my plan
0:53:38 > 0:53:42# I overlooked that point completely
0:53:42 > 0:53:47# Until the big affair began... #
0:53:51 > 0:53:54Yes, I'm afraid, bar a few carpets being ripped up,
0:53:54 > 0:53:57nothing has changed since our last visit.
0:53:59 > 0:54:02And at the back, have all the plans been refocused?
0:54:02 > 0:54:06Well, at least a few bushes have been cleared up.
0:54:06 > 0:54:09# Before I knew where I was at
0:54:10 > 0:54:14# I found myself hung up on a shelf and that was that
0:54:14 > 0:54:20# I tried to reach for the moon but you know when I got there
0:54:20 > 0:54:24# All that I could get was the air... #
0:54:24 > 0:54:28It falls on Tariq to pick up the story on what they discovered when
0:54:28 > 0:54:31they spoke to the planning department.
0:54:31 > 0:54:37We did some work in planning, but we had some issues regarding the flats.
0:54:37 > 0:54:40It's very close to the junction, there is a road going next to that
0:54:40 > 0:54:44which linked to these next-door flats and it's going to be too
0:54:44 > 0:54:46crowded and it's linking to a main road and the
0:54:46 > 0:54:51width of the property is not wide enough, so it wasn't a good idea.
0:54:51 > 0:54:56We will look at it, maybe not 16, maybe six flats, but then again,
0:54:56 > 0:54:58that's not our intention to do that.
0:54:58 > 0:55:02We've just done a preplanning application which was not a complete
0:55:02 > 0:55:04application. We've done some research,
0:55:04 > 0:55:08we've done some enquiries and then we plan not to go ahead with that.
0:55:08 > 0:55:10We've never done the full application.
0:55:10 > 0:55:13So, after doing some research, they realised their plans for
0:55:13 > 0:55:17multiple flats would not be passed by planning.
0:55:17 > 0:55:20But what about plan B, extending the existing property?
0:55:20 > 0:55:24The next plan was to build this into a detached big house,
0:55:24 > 0:55:26into a six bedroom house.
0:55:26 > 0:55:29And maybe build a small one at the back.
0:55:29 > 0:55:32But then we've done some local research in the area.
0:55:34 > 0:55:37It wasn't much profitable for us because it's going to take a lot of
0:55:37 > 0:55:39time and then the profit margin wasn't good enough
0:55:39 > 0:55:43for us to carry on with that. That's why we dropped that as well and
0:55:43 > 0:55:45we'll put it back into the auction.
0:55:45 > 0:55:50It's been sold for £248,000 and that's what we're going to get
0:55:50 > 0:55:51from the auction.
0:55:52 > 0:55:56So, having cut their losses and put it back into auction,
0:55:56 > 0:55:59and having spent around 3,000 on the property,
0:55:59 > 0:56:02they've managed to make a pre-tax profit of 15 grand.
0:56:05 > 0:56:07But was it the right decision?
0:56:07 > 0:56:10We've asked along two local estate agents to see what they think,
0:56:10 > 0:56:13starting with the agent who saw it originally.
0:56:15 > 0:56:17Well, since I last came,
0:56:17 > 0:56:19it doesn't look like they've done anything at all.
0:56:22 > 0:56:25It's the same now as it was when they bought it.
0:56:25 > 0:56:29On paper, this property potentially could've been a great plot,
0:56:29 > 0:56:31you know, for building.
0:56:32 > 0:56:36But it is subject to sewer issues and transport, you know,
0:56:36 > 0:56:39things like that. That would all determine whether or not the
0:56:39 > 0:56:40planning was authorised.
0:56:40 > 0:56:43It just goes to show, you should always take advice from
0:56:43 > 0:56:46the local planning department before you take the plunge.
0:56:46 > 0:56:50It's also worth looking up the council's local planning information,
0:56:50 > 0:56:52which is usually available online.
0:56:52 > 0:56:56This can give you an indication of what's possible and what not.
0:56:56 > 0:57:00So, let's go back to basics. If they had gone on and developed the
0:57:00 > 0:57:02house, what could it sell for right now?
0:57:02 > 0:57:07If they were to extend the property into a four or five bedroom property,
0:57:07 > 0:57:13then price for the area, for that type of property, is probably in the
0:57:13 > 0:57:18region of 375,000, maybe £385,000.
0:57:18 > 0:57:21I think if the property were to be extended into a four or potentially
0:57:21 > 0:57:25a five bedroom property, the profit margin wouldn't be enormous.
0:57:25 > 0:57:28It would probably go up to figures, you know, sort of 350, 365,
0:57:28 > 0:57:30around that sort of figure there.
0:57:30 > 0:57:32Because again, the area will only command a certain sale price.
0:57:34 > 0:57:38If you were to assume around £100,000 for renovation and extending,
0:57:38 > 0:57:42a potential profit based on those valuations would come in around
0:57:42 > 0:57:4417 and 47 grand.
0:57:46 > 0:57:50In the meantime, the cousins are happy to take their 15 grand and
0:57:50 > 0:57:53have no more hassle, but they're not put off by the auctions.
0:57:55 > 0:57:57Auction is not a bad option to go for.
0:57:57 > 0:58:01The only thing is if you pick up the right property, then it's good.
0:58:08 > 0:58:11Well, as we've seen, some property development projects do largely go
0:58:11 > 0:58:14- to plan.- Yes, but unfortunately, some go wrong.
0:58:14 > 0:58:16The plans go out the window.
0:58:16 > 0:58:17Join us next time for more best
0:58:17 > 0:58:21- laid plans here on Homes Under The Hammer.- Bye-bye.- Bye-bye.