0:00:02 > 0:00:04Hello and welcome. Now, you don't have to have bags of experience
0:00:04 > 0:00:06to give property developing a go.
0:00:06 > 0:00:09But if you have good contacts in the trade,
0:00:09 > 0:00:13or are even quite handy yourself, you could save time and money.
0:00:13 > 0:00:15Yes, so, do you fancy it?
0:00:15 > 0:00:18Well, why not pop down to your local property auction and give it a go?
0:00:45 > 0:00:48Well, no matter how experienced you are in property there'll always be
0:00:48 > 0:00:51things that pop out of the woodwork, literally, and catch you unawares.
0:00:51 > 0:00:54That's both the exciting and terrifying part of it.
0:00:54 > 0:00:57So, let's find out how it worked out for buyers on today's show.
0:00:59 > 0:01:03In Derbyshire, the floor plans in this house get the thumbs up from me.
0:01:03 > 0:01:06Although this is basically your only main downstairs living room,
0:01:06 > 0:01:08it actually works.
0:01:09 > 0:01:13Whereas on a trip to Wales I'm rather baffled by this house's layout.
0:01:13 > 0:01:15So, the kitchen, I'd imagine, is through here.
0:01:16 > 0:01:19No, you've got a set of stairs.
0:01:19 > 0:01:24And in Kent, Lucy discovers some important information about a property we first saw in 2014.
0:01:24 > 0:01:29There is something I haven't told you yet that could affect planning permission here.
0:01:30 > 0:01:34All these properties have been sold at auction and we'll find out who
0:01:34 > 0:01:38bought them and what they paid for them when they went under the hammer.
0:01:38 > 0:01:40Sold, it's yours, sir.
0:01:43 > 0:01:48This is Langley Mill, a small market town in Derbyshire's Amber Valley.
0:01:48 > 0:01:52It has its own train station and is close to the M1.
0:01:52 > 0:01:54Langley Mill is very well-placed indeed,
0:01:54 > 0:01:57being close to both Derby and Nottingham.
0:01:57 > 0:02:00And it's also the joining point of three canals and two towns,
0:02:00 > 0:02:03Langley Mill and Aldercar,
0:02:03 > 0:02:08and I have a meeting of my own with what I hope will be an interesting property lot.
0:02:10 > 0:02:13So, what was up for auction?
0:02:13 > 0:02:16Well, a two-bed terrace, pretty much like these,
0:02:16 > 0:02:18guide price of £50,000 plus.
0:02:18 > 0:02:21You can't go wrong with these kind of properties.
0:02:21 > 0:02:23Or can you? Let's find out.
0:02:26 > 0:02:28The outside suggests a bit of TLC might be needed
0:02:28 > 0:02:34and I'd want to know who owns the passageway and if there's a flying freehold.
0:02:34 > 0:02:38That's when part of a building is above another part belonging to someone else.
0:02:38 > 0:02:44Lenders may ask for indemnity insurance to cover any repair disputes etc.
0:02:44 > 0:02:46So, what have we got in this instance?
0:02:46 > 0:02:49Well, quite surprised actually, because you walk through the door,
0:02:49 > 0:02:51very open-plan room.
0:02:51 > 0:02:53Obviously been adapted over time.
0:02:53 > 0:02:55Which actually creates a nice impression.
0:02:55 > 0:03:00You've got the staircase in the middle there, which, yeah, actually works for me.
0:03:00 > 0:03:03Hm, one thing that doesn't work, though, is the state of the stairs.
0:03:03 > 0:03:08The gaps in the balustrade will not comply with building regulations so those need filling in.
0:03:10 > 0:03:14But in terms of layout I do like this open-plan feel.
0:03:14 > 0:03:17You know, if you've got a smaller house then, you know,
0:03:17 > 0:03:20make your one main living room as big as you possibly can by knocking
0:03:20 > 0:03:23down walls and taking out unnecessary features.
0:03:23 > 0:03:26And then it feels a lot bigger than it actually is.
0:03:26 > 0:03:29Although this is basically your only main downstairs living room,
0:03:29 > 0:03:31it actually works.
0:03:31 > 0:03:34Classic kind of layout for this kind of property where you've got your
0:03:34 > 0:03:38kitchen there at the back and then further on through to the only bathroom in the property.
0:03:38 > 0:03:40That's not ideal but it's sort of what people expect
0:03:40 > 0:03:43from these kind of properties, so not too much of an issue.
0:03:43 > 0:03:45And again, coming back to that guide price...
0:03:47 > 0:03:49..it's good. It's good.
0:03:49 > 0:03:53# So far, so good
0:03:53 > 0:03:55# So far, so nice... #
0:03:55 > 0:04:00It's an area that's popular with renters so you could turn this into a nice little earner,
0:04:00 > 0:04:03particularly if you get it close to that £50,000 plus guide price.
0:04:03 > 0:04:07Hopefully, there are no nasty surprises upstairs.
0:04:10 > 0:04:15So, up those centrally located stairs to the upper floor.
0:04:15 > 0:04:19Now, the first thing you notice when you come up here is something a bit strange.
0:04:19 > 0:04:22It feels wider than it is downstairs.
0:04:22 > 0:04:25Well, that's because this bit of the property is actually above
0:04:25 > 0:04:29that little passageway, which is downstairs,
0:04:29 > 0:04:31and runs to the back of the property.
0:04:31 > 0:04:34Now, that's fine as long as you know who owns that passageway,
0:04:34 > 0:04:36otherwise you get into the realms of flying freehold.
0:04:36 > 0:04:39That's something your solicitor would need to check out.
0:04:39 > 0:04:43But the bonus is that actually upstairs feels really spacious.
0:04:43 > 0:04:45There are only currently two bedrooms.
0:04:45 > 0:04:48A large one at the front and a really big one at the back.
0:04:48 > 0:04:52Now, given that you've got a couple of windows here and also the size of it,
0:04:52 > 0:04:55surely you could either get another bedroom in here,
0:04:55 > 0:04:57or move that bathroom,
0:04:57 > 0:05:00and then you could create some kind of utility room downstairs.
0:05:00 > 0:05:02Either way, I think it's an easy thing to do
0:05:02 > 0:05:04that's going to add value to the house.
0:05:04 > 0:05:06So, all in all, really great.
0:05:06 > 0:05:10# Come on and make it
0:05:10 > 0:05:14# Come on and make it
0:05:14 > 0:05:18# Just better... #
0:05:21 > 0:05:23Out the back, there is even more opportunity to add value
0:05:23 > 0:05:26with a rather tired flat roof extension
0:05:26 > 0:05:31perhaps being better replaced with a bigger two-storey extension,
0:05:31 > 0:05:35which would potentially allow you to have even more bedrooms upstairs.
0:05:37 > 0:05:40To help with these decisions and more we asked along an agent
0:05:40 > 0:05:43from the auction house that sold it
0:05:43 > 0:05:46for his opinion on this property, guided at £50,000 plus.
0:05:48 > 0:05:52# Come on and make it just better... #
0:05:52 > 0:05:55First impressions of the property is it's tired, it's exhausted,
0:05:55 > 0:05:58it requires a fair amount of work.
0:05:58 > 0:06:02There is scope. There is good size bedroom space upstairs.
0:06:02 > 0:06:06There may be potential to convert it into three bedrooms,
0:06:06 > 0:06:08even put in a shower room.
0:06:08 > 0:06:11- But the property's tired. - I agree, it is tired.
0:06:11 > 0:06:15But it does look as though you could do a basic refurbishment if you
0:06:15 > 0:06:19wanted to and you have here an opportunity to add value
0:06:19 > 0:06:22with a third bedroom or a shower room.
0:06:22 > 0:06:25The agent thinks you could spend between £10,000-£20,000,
0:06:25 > 0:06:28depending on how far you wanted to go with it.
0:06:28 > 0:06:31So, is there any money to be made here?
0:06:31 > 0:06:33Once this property's finished, hopefully to a high standard,
0:06:33 > 0:06:37as a two-bed you're looking in the region of £75,000-£80,000.
0:06:37 > 0:06:41If it's three-bedroom then you are looking slightly higher.
0:06:41 > 0:06:44You're looking within the region of £80,000-£90,000.
0:06:44 > 0:06:46So, what kind of rental could it make?
0:06:46 > 0:06:48With regards to rental,
0:06:48 > 0:06:53as a two-bedroom property you're looking within the region of 425-450 per calendar month.
0:06:53 > 0:06:57As a three-bedroom property that may open the market to a family,
0:06:57 > 0:07:02so you are looking within the region of 450, maybe, maximum,
0:07:02 > 0:07:04£500 per calendar month.
0:07:04 > 0:07:08Assuming you got it for £50,000 and spent £20,000 on it,
0:07:08 > 0:07:13£500 per calendar month would see a yield of around 8%.
0:07:13 > 0:07:14Now, that's pretty healthy.
0:07:16 > 0:07:21So, keep the budget nice and tight and you'd end up with a really good
0:07:21 > 0:07:22home for not very much money,
0:07:22 > 0:07:26or a potentially very profitable rental property.
0:07:26 > 0:07:28Let's see who bought it when it went under the hammer.
0:07:31 > 0:07:33A two-bedroom mid-terraced house,
0:07:33 > 0:07:36bay-fronted, scope for some improvement.
0:07:36 > 0:07:37Start me on the guide, 50.
0:07:37 > 0:07:3950, I'm looking for. 45.
0:07:39 > 0:07:41Bid me. 45, I'm bid, thank you very much.
0:07:41 > 0:07:43At £45,000 we're away.
0:07:43 > 0:07:4546. And seven. 47 is bid.
0:07:45 > 0:07:47And eight. 47.
0:07:47 > 0:07:5048. 48 is bid.
0:07:50 > 0:07:5249 is bid. Thank you.
0:07:52 > 0:07:5349. Take the half.
0:07:53 > 0:07:5649 and a half. Treat you the same, madam.
0:07:56 > 0:07:5850. Another half.
0:07:58 > 0:08:00At £50,000.
0:08:00 > 0:08:02Looking for 50 and a half elsewhere.
0:08:02 > 0:08:05And a half. 51.
0:08:05 > 0:08:08And a half. 52.
0:08:08 > 0:08:11And a half. 53.
0:08:11 > 0:08:13And a half. 54.
0:08:14 > 0:08:16And a half.
0:08:16 > 0:08:1855. And a half.
0:08:20 > 0:08:2355,500 at the back of the room.
0:08:23 > 0:08:2556. 56 and a half.
0:08:25 > 0:08:30No? At £56,000, make no mistakes, on my right, lady's bid,
0:08:30 > 0:08:32at £56,000 for the first time.
0:08:32 > 0:08:35At £56,000 for the second time.
0:08:35 > 0:08:39If you're sure and all done, hammer's up, it goes at £56,000.
0:08:39 > 0:08:41Sold. It's yours, madam, bidder number 72.
0:08:41 > 0:08:43Thank you.
0:08:43 > 0:08:47So the hammer fell on the two-bed terraced house in Langley Mill at
0:08:47 > 0:08:5256,000, and it was bought by husband and wife team Barbara and Stephen.
0:08:52 > 0:08:55I met the couple back at their new property to find out the plan.
0:08:57 > 0:09:01- Stephen, Barbara, good to meet you both.- Hello.- Congratulations.
0:09:01 > 0:09:03Tell me why you wanted to buy this place.
0:09:03 > 0:09:08We wanted to buy it really towards our pension.
0:09:08 > 0:09:10OK. Is it something you've done before?
0:09:10 > 0:09:15- Yes.- Yes.- OK, and that went well, or not so well?
0:09:15 > 0:09:17- Well, reasonably well. - Reasonably well.
0:09:17 > 0:09:21Reasonable enough that you're still here and wanting to buy this one.
0:09:21 > 0:09:24- Yes.- Yes.- What was it about this house that you particularly like?
0:09:24 > 0:09:27We came to look at it the day before it went up for auction.
0:09:27 > 0:09:31- Oh, wow.- And it just spoke to me.
0:09:31 > 0:09:34And it sort of... "Please, please buy me."
0:09:34 > 0:09:38- Aww.- And it's got a feature on the front -
0:09:38 > 0:09:41it looked as if it had got raised eyebrows.
0:09:41 > 0:09:44And I thought, I like it, it's quirky.
0:09:44 > 0:09:47# It spoke to me
0:09:47 > 0:09:50# Yea-ea-eah. #
0:09:50 > 0:09:53Well, maybe not the most conventional reason
0:09:53 > 0:09:58for buying a property but if it works for them, who am I to argue?
0:09:58 > 0:10:01But I'm now intrigued to know how they're going to
0:10:01 > 0:10:04make this house speak to would-be buyers or tenants.
0:10:04 > 0:10:07So, tell me what you're going to do to it then.
0:10:07 > 0:10:11- Most of it's going to get ripped out.- Right.- New kitchen, bathroom, rewire.
0:10:11 > 0:10:14Right. Keep the layout as it is with the stairs in the middle here?
0:10:14 > 0:10:18- I think so.- Yes, I think so.- You wouldn't swap them round, perhaps?
0:10:18 > 0:10:21- I don't think so.- No, no. We'll do something with the stairs.
0:10:21 > 0:10:23Do something with them? Like what?
0:10:23 > 0:10:26- They're not safe for a start, are they?- No, we've realised that.
0:10:26 > 0:10:28- No, no.- We've realised that. You can't have big holes through the sides.
0:10:28 > 0:10:30No, ideally not, no, small children...
0:10:30 > 0:10:33- We'll work something out.- We've got a few ideas.- You have?- Yes.
0:10:33 > 0:10:35Fair enough. Bathroom, of course,
0:10:35 > 0:10:38traditional layout of these kind of houses right at the back, through the kitchen.
0:10:38 > 0:10:40- Yes.- Any plans to try and move that anywhere else,
0:10:40 > 0:10:42or is it going to stay where it is?
0:10:42 > 0:10:45- I don't think so.- I don't think so, no. Don't think so.- We'll leave it where it is.- Maybe not.
0:10:45 > 0:10:49- We might look at it. We don't know. - Who's going to do the work?
0:10:49 > 0:10:51- Most of it will be us.- Right.
0:10:51 > 0:10:54- So...- Are you fairly handy, both of you, then?
0:10:54 > 0:10:57- Qualified tradesman, carpenter, so...- Oh, OK, great.
0:10:57 > 0:11:00- That works.- But I've done, you know, plumbing, bricklaying.
0:11:00 > 0:11:03- Right.- All the lot all my life.
0:11:03 > 0:11:06And is the idea then to do it up and sell it on, or what?
0:11:06 > 0:11:08No, we shall just rent it out, I think.
0:11:08 > 0:11:13- Right.- So, I don't think we're going to sell it when it's done because it's part of our pension.
0:11:13 > 0:11:15So, what's the budget for the work you've got planned?
0:11:15 > 0:11:19- Well...- About... What we said, about 10,000, didn't we?
0:11:19 > 0:11:21OK. And the timescale?
0:11:22 > 0:11:26I think it's going to take me probably nine months to a year.
0:11:26 > 0:11:28That's with you working on it most of the time, is it?
0:11:28 > 0:11:31- Yes.- Without any help? Mostly you, then?
0:11:31 > 0:11:33I will get, obviously some people.
0:11:33 > 0:11:35- Gas and electric.- Gas and electric stuff like that.
0:11:35 > 0:11:38- Right.- And my daughter.- Your daughter's going to help out as well?
0:11:38 > 0:11:40- Yes.- Well, listen, congratulations.
0:11:40 > 0:11:42Good luck with it. Look forward to seeing how you get on.
0:11:42 > 0:11:46- Thank you.- I'm sure you will, Martin.
0:11:46 > 0:11:49So, slightly unconventional reasons for choosing a property
0:11:49 > 0:11:51but actually I think they've got a pretty good one here.
0:11:51 > 0:11:53How will they get on sorting it out?
0:11:53 > 0:11:56You can find out later in the show.
0:12:00 > 0:12:04Next up, I'm in Wales in the village of Tylorstown in the Rhondda Valley,
0:12:04 > 0:12:07with Cardiff to the east and Swansea to the west.
0:12:09 > 0:12:12The village's namesake happens to be a Londoner - Alfred Tylor,
0:12:12 > 0:12:15who opened the first mine here.
0:12:15 > 0:12:19But, ever since, Tylorstown has been Welsh through and through.
0:12:21 > 0:12:23# I'm gonna name it
0:12:23 > 0:12:27# After yo-o-o-o-ou
0:12:28 > 0:12:31# After you... #
0:12:32 > 0:12:35I'm here to see a three-bedroom mid-terraced house
0:12:35 > 0:12:38with a guide price of £25,000 plus.
0:12:38 > 0:12:43This is it. Now, the auction catalogue says it's split over three floors.
0:12:43 > 0:12:46But what's not immediately obvious is how.
0:12:46 > 0:12:48This needs further investigation.
0:12:51 > 0:12:54Well, inside the first thing you notice is that it's a lot brighter
0:12:54 > 0:12:57than you might expect with these sorts of houses.
0:12:57 > 0:12:59Through to a reception room.
0:12:59 > 0:13:01You know what? It's a really good size.
0:13:01 > 0:13:03Often it can feel cramped.
0:13:03 > 0:13:05And considering no-one's lived here for a while, it would seem,
0:13:05 > 0:13:08it doesn't smell too bad and it doesn't have that mouldy smell.
0:13:08 > 0:13:11You have a feminine touch with the wallpaper.
0:13:11 > 0:13:13Really good news, which is not always the case,
0:13:13 > 0:13:15you've got central heating, double glazing.
0:13:15 > 0:13:17So far so good.
0:13:17 > 0:13:22Walking along the hallway you go round in a bit of a maze.
0:13:22 > 0:13:25Let's see.
0:13:25 > 0:13:26You know, it feels solid.
0:13:26 > 0:13:29Everything feels pretty solid.
0:13:29 > 0:13:32And then you have a bathroom, which needs taking out,
0:13:32 > 0:13:35but you know, it's a pretty decent size.
0:13:35 > 0:13:37You could get your shower, your bath, in there.
0:13:38 > 0:13:40So, the kitchen, I'd imagine, is through here.
0:13:41 > 0:13:43No, you've got a set of stairs.
0:13:43 > 0:13:48Now, this could explain and solve the mystery of the three floors.
0:13:48 > 0:13:49Let's go and find out.
0:13:51 > 0:13:55Ah. Indeed it does solve the mystery.
0:13:55 > 0:13:59So, downstairs here in what you might call the basement you have the kitchen.
0:13:59 > 0:14:02But what's wonderful is it's kind of flooded with light.
0:14:02 > 0:14:06It's not your normal basement feeling where it's poky and dingy.
0:14:06 > 0:14:09And the great thing about these Welsh valleys
0:14:09 > 0:14:12is that you can build this third floor right at the bottom
0:14:12 > 0:14:16into the incline of the hills and yet you'd never know from the front of the house.
0:14:16 > 0:14:19Ah, not so great.
0:14:19 > 0:14:23You have quite a lot of damp patches, kind of black and mouldy, round the door.
0:14:23 > 0:14:25On the plus side it is around the door,
0:14:25 > 0:14:28so perhaps that's a sign that it's a ventilation problem.
0:14:28 > 0:14:31You know, somebody's not lived here for a long time.
0:14:31 > 0:14:33Hopefully not too bad.
0:14:33 > 0:14:36You definitely want to get it checked out with a damp specialist.
0:14:36 > 0:14:39The kitchen is a great size.
0:14:39 > 0:14:42It probably needs taking out to modernise it.
0:14:42 > 0:14:45And I'm thinking it's not ideal to have your kitchen,
0:14:45 > 0:14:47it wouldn't be to everyone's taste to have it down here.
0:14:47 > 0:14:51What do you do? Do you make your supper and carry it up the stairs on a tray?
0:14:51 > 0:14:52Not very sociable.
0:14:52 > 0:14:58But then again, you have a great garden area, and what a view of the hills.
0:14:58 > 0:15:00Absolutely stunning.
0:15:00 > 0:15:04So, you could make it sociable, you know, by taking a wee G&T outside,
0:15:04 > 0:15:06enjoying it, or your cup of tea in the morning,
0:15:06 > 0:15:08or a gathering with friends.
0:15:08 > 0:15:13# Oh, now tell me where can you party, child, all night long?
0:15:13 > 0:15:17# In the basement Down in the basement
0:15:17 > 0:15:19# That's where it's at... #
0:15:19 > 0:15:23I know we've seen properties with this kind of configuration on the show before.
0:15:23 > 0:15:26I rather like it.
0:15:26 > 0:15:29I can imagine decking, or even a little conservatory,
0:15:29 > 0:15:31to make use of that amazing view.
0:15:31 > 0:15:35But having all these stairs wouldn't suit everyone.
0:15:35 > 0:15:37Time to get to the top floor.
0:15:37 > 0:15:43Upstairs to our bedrooms, and the floral theme on the wallpaper continues.
0:15:43 > 0:15:47The wallpaper's hanging off but, you know, just cosmetic.
0:15:47 > 0:15:50And I can see through to a smaller box room.
0:15:50 > 0:15:54It's not actually as titchy as you might find in some of these terraced houses.
0:15:54 > 0:15:58You might want to use it as a nursery, or maybe an office.
0:15:58 > 0:16:02And through to a really decent-sized bedroom here.
0:16:02 > 0:16:04But one thing I'm noticing as I'm walking around,
0:16:04 > 0:16:07and particularly on this floor, is the slope.
0:16:07 > 0:16:10It feels like you're at sea. It's quite discombobulating.
0:16:10 > 0:16:11Allow me to demonstrate.
0:16:11 > 0:16:14I could borrow this bottle of water from the crew...
0:16:14 > 0:16:17# On a roll again
0:16:17 > 0:16:20# Rock and roll again... #
0:16:20 > 0:16:22Now, THAT'S a slope.
0:16:22 > 0:16:26# On a roll again
0:16:26 > 0:16:29# Rock and roll again... #
0:16:29 > 0:16:32So, there are certainly some ups and downs with this house
0:16:32 > 0:16:35but it's a good size and it's pretty solid,
0:16:35 > 0:16:38so I would be inclined to giving it the thumbs-up.
0:16:39 > 0:16:43But, what's a local estate agent's angle on this three-bed house?
0:16:47 > 0:16:50If I had this property I would definitely give it a lick of paint.
0:16:50 > 0:16:52I wouldn't change any of the room layouts
0:16:52 > 0:16:53because they're all pretty decent.
0:16:53 > 0:16:55As soon as I walked in the property,
0:16:55 > 0:16:58the first room I went into, you could actually feel the angles.
0:16:58 > 0:17:01It does feel like you're walking slightly up a hill.
0:17:01 > 0:17:04And that's not too different from some of the other houses on this street,
0:17:04 > 0:17:07which doesn't seem to affect purchases or renters.
0:17:07 > 0:17:09OK, so that's good to know.
0:17:09 > 0:17:15So, let's crack on with some figures for this house that was guided at £25,000 plus.
0:17:15 > 0:17:17Once this property's renovated,
0:17:17 > 0:17:20I would put it on the market for 90/95,000
0:17:20 > 0:17:23if it was done up to a really high standard.
0:17:23 > 0:17:25And its rental potential?
0:17:25 > 0:17:29This property would definitely achieve £450 per calendar month.
0:17:29 > 0:17:31There are properties that we rent on this street
0:17:31 > 0:17:33for £400 per calendar month but this is quite large.
0:17:37 > 0:17:39I really like this house.
0:17:39 > 0:17:43You feel like you are getting a surprise bonus third floor.
0:17:43 > 0:17:48But speaking of floors, well, it really is quite slopey in there.
0:17:48 > 0:17:54Let's hope that doesn't mean enthusiasm sloped off at auction when it went under the hammer.
0:17:58 > 0:18:00Going price, 25,000 plus.
0:18:00 > 0:18:03You get a three-bedroomed house, put me in, 20,000.
0:18:04 > 0:18:07OK, I've got 20 there, will you go 21?
0:18:07 > 0:18:1222. 23. 24. 25. 26. 27.
0:18:12 > 0:18:1428, 29. 30...
0:18:14 > 0:18:18So there was a flurry of activity on the three-bed house and we rejoin
0:18:18 > 0:18:20with bidding at 36 grand.
0:18:20 > 0:18:2236, 37, madam?
0:18:22 > 0:18:2437, will you go 38, sir?
0:18:24 > 0:18:27No, right, 37 and a half here. 38? 38, madam.
0:18:27 > 0:18:30And a half. 39.
0:18:30 > 0:18:31And a half. 40?
0:18:31 > 0:18:34And a half? No. 40, to the lady on the steps.
0:18:34 > 0:18:3640,000 to the lady at the steps.
0:18:36 > 0:18:38I'll take half anywhere else in the room otherwise,
0:18:38 > 0:18:41to the lady on the steps at 40,000. For the first time?
0:18:42 > 0:18:4540,000 for the second time.
0:18:45 > 0:18:47Last chance, £40,000, sold, madam.
0:18:47 > 0:18:50£40,000, number 135.
0:18:50 > 0:18:53No, the successful bid wasn't the lady in the glasses,
0:18:53 > 0:18:58but tucked away in the stairs was Joanna, who bought it for 40 grand
0:18:58 > 0:19:00as a joint project with husband, Romel.
0:19:00 > 0:19:03They live a two-hour drive away from this,
0:19:03 > 0:19:05their first step in property development.
0:19:05 > 0:19:10# The first step is the hardest
0:19:10 > 0:19:15# The first step is the hardest. #
0:19:15 > 0:19:19I caught up with them after they had been reunited with baby Ira.
0:19:19 > 0:19:23- Joanna, hello.- Hi, there. - Romel.- Hello.- Congratulations.
0:19:23 > 0:19:25- Thank you.- How old is Ira?
0:19:25 > 0:19:28- She's just going to be... - Four months.- Four months, nearly.
0:19:28 > 0:19:31And is she your first or does she have siblings?
0:19:31 > 0:19:34She's got a bigger sister and brother, six and three.
0:19:34 > 0:19:36- Six and three?- Yes.
0:19:36 > 0:19:40So six and three and four months, and a new property.
0:19:40 > 0:19:42That's exactly what it is.
0:19:43 > 0:19:46OK, so we have a family who have a two-hour drive,
0:19:46 > 0:19:48three young kids and a three-storey house.
0:19:48 > 0:19:52So, it is safe to say they like a challenge, and it would seem they
0:19:52 > 0:19:55like spontaneity and risk taking, too.
0:19:58 > 0:20:01The night before the auction, she just did tell me,
0:20:01 > 0:20:04"Oh, there is an auction tomorrow morning, would you like to go?"
0:20:04 > 0:20:07So, I thought of coming to the auction,
0:20:07 > 0:20:09see how it was going to go on,
0:20:09 > 0:20:12just to get an idea about the auction, but she had a different idea.
0:20:12 > 0:20:15- I had done a bit of research. - She had done a bit of research,
0:20:15 > 0:20:17I didn't know, and she ended up buying the house.
0:20:17 > 0:20:20So, Joanna, you had a different idea.
0:20:20 > 0:20:23It doesn't sound like you massively shared this idea with your...
0:20:23 > 0:20:26No, we had an idea that we wanted to invest in property.
0:20:26 > 0:20:29- Yeah.- Romel wasn't sure.
0:20:29 > 0:20:33- I am kind of a driving force.- True.
0:20:33 > 0:20:37And we are a team, so we are working as a team, but someone needs to,
0:20:37 > 0:20:41- you know, push the wagon. - Sometimes it does need someone...
0:20:41 > 0:20:43Initiative. Because we've been always saying,
0:20:43 > 0:20:46"We're going to go to auction, we're going to see, we're going to buy,
0:20:46 > 0:20:49- "we're going to do this," but it never happens.- It never happens.
0:20:49 > 0:20:52We just needed that little push and maybe just finally start it.
0:20:52 > 0:20:55There is initiative and then there is real courage,
0:20:55 > 0:20:58which slightly gives me the fear that you would buy somewhere and
0:20:58 > 0:21:02you didn't...you hadn't been there and you could have come in here and the walls were falling down!
0:21:02 > 0:21:05So what made you say, "Yes, I'm going to go for it"?
0:21:05 > 0:21:09I'm kind of an optimistic person, if that makes sense?
0:21:09 > 0:21:11I know, in terms of investment and business,
0:21:11 > 0:21:15you need to be more bold and do your homework and things,
0:21:15 > 0:21:18but I got something like a gut feeling and I really felt...
0:21:19 > 0:21:22..that this should be a good thing.
0:21:22 > 0:21:26So, you know, even if things don't turn out always our way,
0:21:26 > 0:21:28we will make it our way.
0:21:28 > 0:21:34# Oh, we're gonna make it our way... #
0:21:34 > 0:21:36Joanna, originally from Poland,
0:21:36 > 0:21:40met Bangladesh-born Romel when she was studying in London to become a
0:21:40 > 0:21:44dentist, while Romel works as a night manager in a hotel
0:21:44 > 0:21:47and plans to take time out to work on the property.
0:21:48 > 0:21:53They've given themselves two to three months for the refurb
0:21:53 > 0:21:55and a 10-15 grand budget,
0:21:55 > 0:21:58but what do they hope to get done in that time and with that money?
0:22:00 > 0:22:04Flooring, bathroom, kitchen, as usual.
0:22:04 > 0:22:06We are going to put something sleek,
0:22:06 > 0:22:09shiny stuff and make it look presentable.
0:22:09 > 0:22:13The kitchen, slightly unusually, is downstairs.
0:22:13 > 0:22:15- Yes.- Do you want to keep it that way?
0:22:15 > 0:22:18- I think so, yeah.- We want to, because it goes out to the garden.
0:22:18 > 0:22:21So, if someone wants to do barbecue or anything,
0:22:21 > 0:22:24then it's quite nice to be able to go out straight.
0:22:24 > 0:22:27There's some damp downstairs. What did you make of that?
0:22:27 > 0:22:30Yeah, there is obviously, as you said, there is damp,
0:22:30 > 0:22:33but we are hoping it is not anything very major.
0:22:33 > 0:22:37- It probably...- It's been locked down for quite a long time.
0:22:37 > 0:22:40So hopefully it is a condensation kind of thing.
0:22:40 > 0:22:43But we will take some advice from specialists and make sure we deal
0:22:43 > 0:22:45- with that before we do anything else.- Do anything else.
0:22:45 > 0:22:48When I went upstairs, especially,
0:22:48 > 0:22:50I was aware that there was a real slope.
0:22:50 > 0:22:52Are you concerned about that?
0:22:52 > 0:22:56- Not really.- Not really. - I'm going to make it even. I know.
0:22:57 > 0:23:00You guys. You're pretty super-confident about it.
0:23:00 > 0:23:04- Yeah.- Better to be.- I am not very like, a handyman, you know,
0:23:04 > 0:23:08but I do a little bit of stuff in my house and things,
0:23:08 > 0:23:13I just recently done, with the help of a friend, we did the loft.
0:23:13 > 0:23:16- Conversion and things.- Now I feel that things are easy.
0:23:16 > 0:23:19You just need to start it.
0:23:19 > 0:23:21We will obviously have help from professionals.
0:23:21 > 0:23:24It is not like we're going to be, you know,
0:23:24 > 0:23:26trying handiwork or DIY in here,
0:23:26 > 0:23:31but obviously, if we are going to have a professional on-site,
0:23:31 > 0:23:33Romel definitely can, you know,
0:23:33 > 0:23:36A, he can manage and make sure that they do the job.
0:23:36 > 0:23:40- Yeah.- And I can do, like the garden and things, obviously.
0:23:40 > 0:23:44I'm going to strip it of everything, lay out grass,
0:23:44 > 0:23:46make it look presentable.
0:23:46 > 0:23:48Well, I cannot wait to see what you do with the place.
0:23:48 > 0:23:50I can't wait as well.
0:23:50 > 0:23:52- Congratulations again. - Thank you very much.
0:23:52 > 0:23:54- Good luck.- Thank you. Thank you very much.
0:23:54 > 0:23:57Good luck, wee girl.
0:24:00 > 0:24:04So, this was Joanna, Romel and Ira's first auction.
0:24:04 > 0:24:08Not only that, but they decided to buy a property without even seeing it!
0:24:08 > 0:24:11But then, Joanna said she just followed her instincts.
0:24:11 > 0:24:14Was that gut reaction right?
0:24:14 > 0:24:16You can find out later in the show.
0:24:17 > 0:24:22Coming up, we return to a large property development in Kent
0:24:22 > 0:24:25that we first saw back in 2014.
0:24:25 > 0:24:27So, now, is it finally finished?
0:24:27 > 0:24:32And in Wales, I think there might be a new property developer in town.
0:24:32 > 0:24:34It was a fantastic experience, first time.
0:24:34 > 0:24:37Hopefully I'm going to have more and more.
0:24:41 > 0:24:43Equidistant from Derby and Nottingham,
0:24:43 > 0:24:47the small Derbyshire town of Langley Mill was where we first saw
0:24:47 > 0:24:50a terraced house with its own entrance to the back,
0:24:50 > 0:24:52great for a terrace.
0:24:52 > 0:24:55Inside was a large open-plan living space which I liked,
0:24:55 > 0:24:59whereas upstairs had plenty of room for improvement.
0:24:59 > 0:25:02There are only currently two bedrooms,
0:25:02 > 0:25:05a large one at the front and a really big one at the back.
0:25:05 > 0:25:07Now, given that you've got a couple of windows here,
0:25:07 > 0:25:13and also the size of it, surely you can either get another bedroom in here or move that bathroom
0:25:13 > 0:25:17and then you can create some kind of utility room downstairs.
0:25:17 > 0:25:20So, two beds could become three,
0:25:20 > 0:25:24which meant there was an opportunity to add value and potentially make money.
0:25:24 > 0:25:28Although that wasn't what first attracted maintenance engineer
0:25:28 > 0:25:33Stephen and his wife Barbara when they bought it for £56,000 at auction.
0:25:34 > 0:25:38We came to look at it the day before it went up for auction.
0:25:38 > 0:25:41- Oh, wow.- And it just spoke to me.
0:25:41 > 0:25:45- And it sort of looked, "Please, please buy me."- Aw!
0:25:45 > 0:25:50And it's got a feature on the front that looked as if it's got raised eyebrows.
0:25:50 > 0:25:54And I thought, I like it, it's quirky.
0:25:54 > 0:25:56- # Cos you've got - Personality
0:25:56 > 0:25:58- # Walk - With personality
0:25:58 > 0:26:00- # Talk - With personality
0:26:00 > 0:26:02# Smile... #
0:26:02 > 0:26:05Well, I guess we all like houses for different reasons,
0:26:05 > 0:26:08but if the outside spoke to Barbara, the inside shouted to me,
0:26:08 > 0:26:10"full refurbishment".
0:26:10 > 0:26:12Update, update, update!
0:26:12 > 0:26:15And with plans to do the majority of the work themselves,
0:26:15 > 0:26:21they hoped a £10,000 budget and a nine-month to maybe a year timescale
0:26:21 > 0:26:24would give the property a sparkling, bright new personality.
0:26:29 > 0:26:31# What more can I do? #
0:26:32 > 0:26:36But now over 18 months have passed and we are finally back.
0:26:40 > 0:26:43Well, the yellow paintwork has certainly lifted it,
0:26:43 > 0:26:47giving it perhaps more of a smile now than a frown.
0:26:47 > 0:26:51But what about the inside? What tale will that tell?
0:27:00 > 0:27:03It's clean, modern, it's so much more welcoming.
0:27:07 > 0:27:09New kitchen. New bathroom.
0:27:13 > 0:27:15And what about upstairs?
0:27:18 > 0:27:20Well, two is now three.
0:27:24 > 0:27:26With a large bedroom split into two.
0:27:29 > 0:27:32And the third bedroom now has its own en suite
0:27:32 > 0:27:35and they've even found space for a separate upstairs toilet.
0:27:35 > 0:27:37So what's the story with that?
0:27:37 > 0:27:40# We need to talk... #
0:27:42 > 0:27:44A little light bulb moment, that was.
0:27:44 > 0:27:47He was just nodding off and I just gave him a poke and I said,
0:27:47 > 0:27:51"We can put the toilet and the shower over the entry,"
0:27:51 > 0:27:53because we own the entry.
0:27:53 > 0:27:58And it made sense because all the pipework could go there and if
0:27:58 > 0:28:01anything leaks or anything, we can get at it.
0:28:01 > 0:28:04That was a moment of pure genius from Barbara.
0:28:04 > 0:28:07She also had a hand in turning the garden around,
0:28:07 > 0:28:10landscaping it while Stephen sorted out the shed.
0:28:10 > 0:28:14Repairing it using materials donated by a friend
0:28:14 > 0:28:17and recycling old and new was a bit of a theme in this house.
0:28:17 > 0:28:20# Let's go round again
0:28:22 > 0:28:25# Maybe we'll turn back the hands of time... #
0:28:25 > 0:28:29- The staircase, well... - It was dark and horrible, wasn't it?
0:28:29 > 0:28:33It was dark and dismal. We thought, well, "How can we make it sort of safe?"
0:28:33 > 0:28:37Because the current regulations are there's got to be some sort of balustrade in it,
0:28:37 > 0:28:39so I thought about it and I looked down the shed
0:28:39 > 0:28:42and we'd got these bits and pieces that came off another staircase,
0:28:42 > 0:28:44so I altered and adapted them...
0:28:44 > 0:28:46And then I painted it silver.
0:28:46 > 0:28:49Painted it all up, and cleaned it all up and that's what it looks like now.
0:28:49 > 0:28:53And with tiles found in the garden used in the fireplace and a rather special clock
0:28:53 > 0:28:58dedicated to what I hope is their favourite TV programme,
0:28:58 > 0:29:03Barbara and Stephen have been imaginative with the materials and space they found in this property.
0:29:03 > 0:29:08But at one point it did seem that all their hard work might turn to dust.
0:29:08 > 0:29:13I started to walk over from the kitchen and I got halfway across
0:29:13 > 0:29:17this room and I heard this creaking and I thought,
0:29:17 > 0:29:19"That doesn't sound very good."
0:29:19 > 0:29:21So I quickly retraced my steps to the doorway
0:29:21 > 0:29:24as this half of the ceiling came down.
0:29:24 > 0:29:26Just one almighty crash.
0:29:26 > 0:29:31Steve rushed down and I was standing in the doorway and I was sort of
0:29:31 > 0:29:34all black and sooty and all of the mess, you know?
0:29:34 > 0:29:36Unfortunately I didn't take a picture of her
0:29:36 > 0:29:38and I should have done, but ever since that...
0:29:38 > 0:29:40- He laughed at me.- Ever since...
0:29:40 > 0:29:43I couldn't help but laugh, I'm sorry.
0:29:43 > 0:29:47Ever since that happened, for the rest of the job she wore a hard hat.
0:29:47 > 0:29:51- I did. - THEY LAUGH
0:29:51 > 0:29:53Well, I don't blame her.
0:29:53 > 0:29:56And with Stephen being busy with other work commitments,
0:29:56 > 0:29:58the timescale also bit the dust.
0:29:58 > 0:30:01# Another one bites the dust... #
0:30:01 > 0:30:03But did the budget go the same way?
0:30:03 > 0:30:05# Another one bites the dust... #
0:30:05 > 0:30:09Well, we'd set a budget of about £10,000,
0:30:09 > 0:30:12we've come in I think round about eight and a half for the actual
0:30:12 > 0:30:18renovation and then it was about two and a half for fees and council tax,
0:30:18 > 0:30:20that sort of thing.
0:30:20 > 0:30:23So we aren't much over, really.
0:30:25 > 0:30:29With an £11,000 spend on top of their £56,000 purchase price,
0:30:29 > 0:30:34Barbara and Stephen have £67,000 invested into this house.
0:30:34 > 0:30:37And it's certainly been quite a journey to get it all finished,
0:30:37 > 0:30:39but was it worth it?
0:30:39 > 0:30:42What did two local property experts think?
0:30:44 > 0:30:47I think they've made a really nice job.
0:30:47 > 0:30:49It's very clean, very tidy, very neutral,
0:30:49 > 0:30:52but got a warm sort of cosy feel to it.
0:30:52 > 0:30:54I think it would be really nice for a family.
0:30:54 > 0:30:57My first impressions of the renovations are that they've all
0:30:57 > 0:30:59been done to a good standard and I'm really impressed
0:30:59 > 0:31:01with the changes made to this property.
0:31:01 > 0:31:03The fireplace is really nice.
0:31:03 > 0:31:05It's got a rustic look which is very in at the moment.
0:31:05 > 0:31:08My favourite feature is the window seat.
0:31:08 > 0:31:12I think the conversion back to a three-bedroom, which was what it was originally built as,
0:31:12 > 0:31:15will certainly add value whether it be to the rental market or to the sales market.
0:31:18 > 0:31:21Barbara and Stephen want to hang on to this house
0:31:21 > 0:31:24and see it as part of a long-term pension plan.
0:31:24 > 0:31:28But currently how much is their £67,000 investment worth?
0:31:29 > 0:31:32For resale I think the property could achieve
0:31:32 > 0:31:34somewhere in the region of £100,000.
0:31:34 > 0:31:37If I were looking to offer this property to the resale market
0:31:37 > 0:31:41I would look to offer it somewhere in the region of 90 to £95,000.
0:31:41 > 0:31:47So a possible 23 to £33,000 pre-tax profit on the resale market.
0:31:47 > 0:31:50But what about the all-important rental potential?
0:31:53 > 0:31:57As a rental I think you'd probably get around £475 per calendar month.
0:31:57 > 0:32:00I would suggest that if this property were offered
0:32:00 > 0:32:05to the rental market it would achieve somewhere in the region of 525 to £550 per calendar month.
0:32:05 > 0:32:09- Quite happy with that. - On the top end, yes.
0:32:09 > 0:32:13So quite a variation on those rental figures but an average around £500
0:32:13 > 0:32:17per calendar month would see a rental yield close to 9% which,
0:32:17 > 0:32:20as a pension fund, is pretty good.
0:32:20 > 0:32:25So, for Barbara and Stephen, are there more property developments on the horizon?
0:32:28 > 0:32:31No more plans to do any more, or I didn't have...
0:32:33 > 0:32:36..but my daughter bought me a house at Christmas...
0:32:38 > 0:32:40..but it's a doll's house.
0:32:40 > 0:32:44So hopefully that won't take 17 months!
0:32:44 > 0:32:46THEY LAUGH
0:32:49 > 0:32:56Now, roll your mind back to 2014 and the historic suburb of Milton Regis
0:32:56 > 0:33:01in Kent, where Lucy saw a property guided
0:33:01 > 0:33:04between 85 and £90,000 that was the order of the day.
0:33:04 > 0:33:07Inside you can tell straightaway this floor here
0:33:07 > 0:33:09was used as a hot food takeaway.
0:33:09 > 0:33:12Right here was the servery,
0:33:12 > 0:33:16and through here I think this may have been the restaurant area.
0:33:16 > 0:33:20I wouldn't fancy ordering my food here as it is at the moment.
0:33:20 > 0:33:23A little bit tatty and needs everything doing.
0:33:23 > 0:33:25Through here you've got the kitchen area.
0:33:25 > 0:33:30That's quite a big space and I'm sure some of that equipment still might work.
0:33:30 > 0:33:32But as a hot food takeaway,
0:33:32 > 0:33:35this floor has A5 business classing,
0:33:35 > 0:33:38which gives you more flexibility than if it had previously
0:33:38 > 0:33:41been used as a shop for example.
0:33:41 > 0:33:44Now, that is because under current regulations
0:33:44 > 0:33:46you're allowed to convert it into a shop, a restaurant,
0:33:46 > 0:33:51or a cafe without applying for change of use from the local authority.
0:33:51 > 0:33:54Now, there are plenty of other commercial businesses
0:33:54 > 0:33:57all along the street so I would advise doing your research
0:33:57 > 0:34:01and finding out what sort of business really would work best here.
0:34:05 > 0:34:09There was a lot on the menu at this former takeaway.
0:34:09 > 0:34:12Directly above the commercial unit was living accommodation.
0:34:14 > 0:34:19On the first floor were three rooms to the front of the building and one
0:34:19 > 0:34:22that had no windows, which connected the two at the other end.
0:34:24 > 0:34:28Through this room was a hall that led to a back bedroom followed by a
0:34:28 > 0:34:31bathroom and another larger room.
0:34:32 > 0:34:37The top floor had four rooms but with no kitchen or bathroom.
0:34:37 > 0:34:40Lots of plumbing would be needed for the most obvious option
0:34:40 > 0:34:44of converting the top two floors to self-contained flats.
0:34:46 > 0:34:49You'd also need to create separate access
0:34:49 > 0:34:52as the only way in was through the commercial unit.
0:34:52 > 0:34:55But Lucy had some ideas for the mixed-use premises.
0:34:58 > 0:35:02What about taking this whole property and turning it into residential?
0:35:02 > 0:35:04How about a couple of houses?
0:35:04 > 0:35:07However, there is something I haven't told you yet
0:35:07 > 0:35:09that could affect planning permission here.
0:35:11 > 0:35:13This property is Grade II listed.
0:35:13 > 0:35:16Now, don't get too excited because that means there'll be extra
0:35:16 > 0:35:19restrictions on any changes you want to make
0:35:19 > 0:35:22on the inside as well as the outside.
0:35:23 > 0:35:27That listed building status meant this was likely to be an expensive
0:35:27 > 0:35:31renovation, and whoever bought it would need to keep in close contact
0:35:31 > 0:35:34with the local conservation officer
0:35:34 > 0:35:37to ensure all building work was sympathetic to the original design.
0:35:40 > 0:35:42# You can try to please me
0:35:42 > 0:35:45# But it won't be easy
0:35:45 > 0:35:47# And you don't stand an outside chance
0:35:47 > 0:35:48# Don't stand an outside chance
0:35:48 > 0:35:51# Don't stand an outside chance
0:35:51 > 0:35:53# But you can try... #
0:35:53 > 0:35:57So lots of space to play with but would that listed building status
0:35:57 > 0:36:00make the bidders go cold when it went under the hammer?
0:36:03 > 0:36:08Another takeaway premises but a big 3-story commercial residential and
0:36:08 > 0:36:10well worth the refurb that's needed.
0:36:10 > 0:36:12Start me, where you will, on that one.
0:36:12 > 0:36:14Really attractive guide price, I thought.
0:36:14 > 0:36:16Give me 80, then, got to start somewhere.
0:36:16 > 0:36:1980,000... 80,000, I'm obliged.
0:36:19 > 0:36:22At 82, 85, 85, 87.
0:36:22 > 0:36:25I've got 85,000 and I'm looking for 87.
0:36:25 > 0:36:28You can't believe it's going to be sold for that but it will be.
0:36:28 > 0:36:30I will set it for the first time.
0:36:30 > 0:36:31I will... 87, thank you.
0:36:31 > 0:36:3387. At 90.
0:36:33 > 0:36:4092, 92, 95, 97, 97.
0:36:40 > 0:36:47And 100, 102, 102 and five and seven.
0:36:47 > 0:36:49107. 107.
0:36:49 > 0:36:53If you don't buy it, what are you going to do with those men that were booked to go in there Monday?
0:36:53 > 0:36:56107, can I say? Well, you've completed my money, of course.
0:36:56 > 0:36:59107, 110? 110?
0:36:59 > 0:37:02No? 108, because you've been with it all this time. 108?
0:37:02 > 0:37:05Put in a white screen instead of a coloured one. That'll save a grand.
0:37:05 > 0:37:07108, 109?
0:37:07 > 0:37:09You could buy it for that. 109?
0:37:09 > 0:37:12110? It's just £1,000 now.
0:37:12 > 0:37:17It's not a big gap. For the first time at £109,000.
0:37:17 > 0:37:19Second time at £109,000.
0:37:19 > 0:37:21Third and final time.
0:37:21 > 0:37:24Yours at 109, G280, thank you.
0:37:24 > 0:37:29# I say... Take me out... #
0:37:29 > 0:37:34Taking away the listed property from auction for 109 grand was Paul.
0:37:34 > 0:37:36Paul, who runs his own building firm,
0:37:36 > 0:37:40had already picked up his main dish in the shape of a neighbouring
0:37:40 > 0:37:45property for 130,000 before he went for the side dish,
0:37:45 > 0:37:49but unfortunately he broke some Homes Under The Hammer golden rules.
0:37:49 > 0:37:53I didn't bother to investigate inside or look into any of the details of it,
0:37:53 > 0:37:57but I turned up at the auction and the bidding was going so slowly
0:37:57 > 0:38:00that I bought it on impulse.
0:38:00 > 0:38:02You just bought it for 109,000?
0:38:02 > 0:38:05- Yeah. Yeah.- Were you a bit shocked and surprised?
0:38:05 > 0:38:09Yeah, I was a bit because I hadn't gone there intending to buy it at all.
0:38:09 > 0:38:14So I just spent, you know, over a quarter of million pounds just on impulse.
0:38:14 > 0:38:18This impulse buy was hardly a packet of sweets at the checkout.
0:38:18 > 0:38:20So with two commercial premises,
0:38:20 > 0:38:25two times two residential storeys and a barn out back,
0:38:25 > 0:38:26Paul had a lot of property.
0:38:28 > 0:38:30So come on then, tell me. What are your plans?
0:38:30 > 0:38:34Subject to planning, this will turn into two houses.
0:38:34 > 0:38:37The shop that I bought next-door we turned into two three-bedroom houses.
0:38:37 > 0:38:39And hopefully the barn will turn into a pair of semis.
0:38:39 > 0:38:42How are you going to do that, and how are you going to do that without
0:38:42 > 0:38:46tampering too much, because it is listed?
0:38:46 > 0:38:49It will actually improve it because it was always two properties
0:38:49 > 0:38:52and they took the spine wall out to make it into one.
0:38:52 > 0:38:57So we will put that back and that will improve the stability of the building.
0:38:57 > 0:38:59So not flats?
0:38:59 > 0:39:03No, we originally thought about flats but the council's policy is to turn shops into houses.
0:39:03 > 0:39:05But because it's listed I'm sure you're going to have a
0:39:05 > 0:39:08lot of involvement with the planners, aren't you?
0:39:08 > 0:39:12Yeah, yeah, the conservation officer will be involved from the beginning.
0:39:12 > 0:39:14And we will get a lot of delays
0:39:14 > 0:39:19talking to them about what they will allow and what they won't allow.
0:39:19 > 0:39:22Paul seemed confident he knew what he was getting into.
0:39:22 > 0:39:25After all, he did have extensive experience
0:39:25 > 0:39:29dealing with English Heritage and period properties.
0:39:29 > 0:39:33He initially thought the building work would take about six months
0:39:33 > 0:39:35and had 80 grand to spend on each unit
0:39:35 > 0:39:39but when we returned almost three years later,
0:39:39 > 0:39:40things hadn't exactly gone to plan.
0:39:42 > 0:39:47# Maybe sometime sooner or later
0:39:49 > 0:39:53# But I don't think I'm ready yet
0:39:55 > 0:40:00# Not feeling up to it now
0:40:02 > 0:40:04# Just not that steady yet
0:40:07 > 0:40:11# And I don't need you telling me how... #
0:40:17 > 0:40:19Sadly, nothing about this project had been simple.
0:40:19 > 0:40:24And the reason for the delay was of course because the building was Grade II listed.
0:40:27 > 0:40:29It's been a bit of a roller-coaster.
0:40:29 > 0:40:33We kept thinking that we'd reached a point where we could go ahead
0:40:33 > 0:40:36but we kept getting rejections.
0:40:36 > 0:40:40Normal planning permission only takes eight weeks and...
0:40:42 > 0:40:45..this took three years, which kind of set us back a bit.
0:40:45 > 0:40:49During this time we've had problems with the security,
0:40:49 > 0:40:51we've had three arson attacks.
0:40:52 > 0:40:56People have been in and stolen all the cables and pipework.
0:40:57 > 0:41:01The fire damage wasn't only restricted to this house.
0:41:01 > 0:41:05The other lot he bought next-door had its barn set on fire and all the
0:41:05 > 0:41:08buildings suffered from the same delay in planning.
0:41:09 > 0:41:11But Paul and his team were granted permission
0:41:11 > 0:41:14to strip the former takeaway restaurant back to the bare brick
0:41:14 > 0:41:18so they could see the condition of the old timber-framed building.
0:41:19 > 0:41:23Sadly, hiding underneath the plaster were a few nasty surprises.
0:41:26 > 0:41:30We've got the main structural beam running through
0:41:30 > 0:41:35but the valley has given way over the years and rotted this beam out.
0:41:36 > 0:41:40So this beam wasn't sitting on anything and
0:41:40 > 0:41:43this is the, this is the structure of the beam.
0:41:43 > 0:41:51It's no longer serving its purpose and we need to replace this completely.
0:41:51 > 0:41:53And pick up this beam at the same time.
0:41:53 > 0:41:57# Stay with me I need support... #
0:41:57 > 0:42:01Once the beams were sorted Paul would be able to get down to fitting out the houses.
0:42:01 > 0:42:05On the ground floors, there would be a lounge and a modern kitchen
0:42:05 > 0:42:09with direct access to a small garden at the back.
0:42:09 > 0:42:12The first floor was going to have two bedrooms
0:42:12 > 0:42:17and a family sized bathroom with the other two bedrooms in the attic.
0:42:17 > 0:42:20Paul had spent 20 grand of his budget so far
0:42:20 > 0:42:24and expected to spend another 120 on the rest of the project.
0:42:24 > 0:42:28This was well under his initial budget of 80 grand per unit.
0:42:28 > 0:42:32So with the budget on track and planning passed,
0:42:32 > 0:42:36would Paul be able to stick to his original six-month build time?
0:42:37 > 0:42:41The timescale should be the same from now,
0:42:41 > 0:42:46providing that we don't come up against any problems
0:42:46 > 0:42:48with the authorities.
0:42:48 > 0:42:50We've got a bit of a challenge
0:42:50 > 0:42:54because the building regs have different requirements
0:42:54 > 0:42:56to the planning people.
0:42:56 > 0:42:59So we have to try and meet the building regs
0:42:59 > 0:43:03but at the same time not destroy the fabric of the building.
0:43:03 > 0:43:06More challenges to come on this character property.
0:43:06 > 0:43:09So would Paul be able to satisfy both building regs and planning
0:43:09 > 0:43:11and manage it all in his timescale?
0:43:11 > 0:43:14You can find out later in the show.
0:43:23 > 0:43:26Well, earlier on in the show we saw how one property turned out.
0:43:26 > 0:43:28But what about the other two?
0:43:28 > 0:43:30Yes, we've still got two more to see,
0:43:30 > 0:43:31so let's find out what happened.
0:43:34 > 0:43:37It was in Tylorstown in the Rhondda Valley
0:43:37 > 0:43:41where we first saw a three-bed, three-storey mid-terraced house
0:43:41 > 0:43:44built into the hill with a kitchen on the bottom floor,
0:43:44 > 0:43:46living space at street level
0:43:46 > 0:43:49and the three bedrooms on the top floor.
0:43:49 > 0:43:53There were certainly some ups and downs with this property.
0:43:53 > 0:43:55Now THAT'S a slope.
0:43:55 > 0:43:59And in addition, there were signs of damp.
0:43:59 > 0:44:02So there were a few issues to contend with in the house.
0:44:02 > 0:44:07Not that married couple Joanna and Romel would have known any of that,
0:44:07 > 0:44:10having bought it at auction for 40 grand unseen
0:44:10 > 0:44:15as a spur of the moment purchase and their first major renovation.
0:44:16 > 0:44:19What made you say yes, I'm going to go for it?
0:44:19 > 0:44:22I'm kind of an optimistic person, if that makes sense.
0:44:22 > 0:44:25And I know it's in terms of investment and business
0:44:25 > 0:44:30you need to be more bold and do your homework and things,
0:44:30 > 0:44:32but I got something like a gut feeling
0:44:32 > 0:44:35and I really felt that this should be a good thing.
0:44:35 > 0:44:37# Oh sometimes
0:44:37 > 0:44:39# I get a good feeling
0:44:39 > 0:44:41# Yeah
0:44:43 > 0:44:46# I get a feeling that I never, never, never, never, had before
0:44:46 > 0:44:48# Oh, no, I get a good feeling. #
0:44:48 > 0:44:51With a proposed budget of 10 to 15 grand
0:44:51 > 0:44:54and a timescale of two to three months,
0:44:54 > 0:44:57fingers crossed that gut feeling was right.
0:44:57 > 0:45:00Well, nine months on, and it's time to find out.
0:45:11 > 0:45:14So, as you walk in we've knocked down the hall wall,
0:45:14 > 0:45:16we've made it open-plan.
0:45:20 > 0:45:24We tried to put laminating but the floor was a bit uneven,
0:45:24 > 0:45:26so we had to sand it off.
0:45:27 > 0:45:30And along with the lounge, the bathroom on this floor
0:45:30 > 0:45:32has also been completely refurbished.
0:45:35 > 0:45:37Going upstairs in the three bedrooms,
0:45:37 > 0:45:39we have renovated it all thoroughly.
0:45:39 > 0:45:42Put new central heating everywhere.
0:45:47 > 0:45:48And with no layout changes,
0:45:48 > 0:45:51the bedrooms remain at the top of the house,
0:45:51 > 0:45:53quite a distance from the kitchen.
0:45:55 > 0:45:59Then, downstairs, the whole kitchen as you can see,
0:45:59 > 0:46:03is renovated to a high standard, I believe. It's all new kitchen.
0:46:05 > 0:46:09The kitchen really looks great and the damp here has been eliminated
0:46:09 > 0:46:12with a damp proof plaster and paint.
0:46:14 > 0:46:19And outside garden, we cleared up as much as we could.
0:46:25 > 0:46:29And with a small patio area to sit and soak up the views,
0:46:29 > 0:46:33this house definitely has more ups than downs.
0:46:35 > 0:46:37# Sometimes I get a good feeling. #
0:46:39 > 0:46:41The biggest trouble was the time.
0:46:41 > 0:46:47Timekeeping with the children's schools, nursery, our job,
0:46:47 > 0:46:52and also the travelling far away.
0:46:52 > 0:46:56Yes, living 90 miles away with a two-hour journey time,
0:46:56 > 0:46:59this house wasn't exactly on their doorstep,
0:46:59 > 0:47:02so a lot of coordination had to be done from afar.
0:47:04 > 0:47:07And though they did try to get to the house at least once a week,
0:47:07 > 0:47:12their role was more hands-off than hands-on and talking of roles,
0:47:12 > 0:47:16what did they do about those sloping floors in the bedroom?
0:47:16 > 0:47:20For the sloping floors on the upstairs bedrooms,
0:47:20 > 0:47:22we've done a bit of research
0:47:22 > 0:47:26and asked a few neighbours if they got the same.
0:47:26 > 0:47:29This road unusually is on the mountainside
0:47:29 > 0:47:33so we just wasn't bothered much to do it up,
0:47:33 > 0:47:36where it was costing us also a bit of extra money,
0:47:36 > 0:47:41so we just left it as it is and tidied it up.
0:47:41 > 0:47:43# Keep on rolling
0:47:43 > 0:47:46# Keep on rolling. #
0:47:49 > 0:47:52And that was probably for the best because property developing
0:47:52 > 0:47:55is all about trying to keep the bottom line in check
0:47:55 > 0:47:57and seeing the bigger picture.
0:47:57 > 0:48:00So, did they keep to their 10 to 15 grand budget?
0:48:00 > 0:48:03We did to spend over that, to be honest,
0:48:03 > 0:48:07because we had to open up the living room
0:48:07 > 0:48:12and dealing with the damp and also the garden was full of rubbish.
0:48:12 > 0:48:16We had to lay patio and things
0:48:16 > 0:48:22so altogether I believe we touched about the 20 grand mark.
0:48:25 > 0:48:30And a 20 grand spend on top of the 40,000 purchase price
0:48:30 > 0:48:34means that Romel and Joanna have 60 grand invested here.
0:48:34 > 0:48:36So have they got their changes right?
0:48:36 > 0:48:39What do two local estate agents think?
0:48:39 > 0:48:41First, the agent who saw it last time.
0:48:43 > 0:48:45I've come back to the property a second time.
0:48:45 > 0:48:49They've done some work to it and the work is average.
0:48:49 > 0:48:51It's decent enough for a rental.
0:48:51 > 0:48:54The standard of finish, first impressions are pretty good.
0:48:54 > 0:48:56I've seen much worse, I've seen slightly better,
0:48:56 > 0:48:59but I think it's overall a very good standard of finish.
0:48:59 > 0:49:01I think with the layout changes it's pretty decent.
0:49:01 > 0:49:05Some people will like it, some people won't, but I think it's quite modern living now.
0:49:05 > 0:49:10I like the original flooring. It's nice that they've kept that touch. It's nice and open-plan.
0:49:10 > 0:49:14The kitchen being downstairs and separate is, you know, it maximises use of space.
0:49:14 > 0:49:18Well, let's hope the quality of the finish isn't a big issue,
0:49:18 > 0:49:22as this has always been a resale project for Romel and Joanna.
0:49:22 > 0:49:26So will they see much profit in their 60 grand investment?
0:49:26 > 0:49:29I think this property would sell at the current market
0:49:29 > 0:49:32for 75 to £80,000.
0:49:32 > 0:49:35I would value the property between 85 and £90,000.
0:49:35 > 0:49:38The agent who said 75 to 80,
0:49:38 > 0:49:42I believe that is reasonable and that's what we're looking for
0:49:42 > 0:49:44at the moment.
0:49:44 > 0:49:49But on the other hand, 85 to 90, if we can get that, wow,
0:49:49 > 0:49:52that would be really great.
0:49:52 > 0:49:57So, a possible 15 to 30 grand pre-tax profit on the resale market,
0:49:57 > 0:50:02and the agents also thought a rental figure in the region
0:50:02 > 0:50:05of £420 per calendar month would be possible,
0:50:05 > 0:50:08which equates to a yield of around 8%,
0:50:08 > 0:50:11which wouldn't be bad as a last resort.
0:50:11 > 0:50:16But how does Romel feel about their first major property renovation?
0:50:16 > 0:50:19From starting with the buying, that was...
0:50:20 > 0:50:24We had no clue that we were buying a house, and then we bought a house.
0:50:24 > 0:50:29Now it's everything done up, waiting to sell.
0:50:29 > 0:50:32It's a fantastic experience, first time,
0:50:32 > 0:50:35and hopefully I'm going to have more and more.
0:50:39 > 0:50:42With roots that can be traced back to Roman times,
0:50:42 > 0:50:46the Kent village of Milton Regis is steeped in history,
0:50:46 > 0:50:49and it was here that we had our own little bit of history to catch up on
0:50:49 > 0:50:53in the form of a Grade II listed property
0:50:53 > 0:50:55that Lucy first saw in 2014.
0:50:55 > 0:50:57Formerly two town houses,
0:50:57 > 0:51:01the large lot had been combined to accommodate a takeaway restaurant
0:51:01 > 0:51:05downstairs, with residential accommodation upstairs.
0:51:05 > 0:51:09And it was bought for £109,000 at auction by experienced local builder
0:51:09 > 0:51:13Paul, although that was just half the story.
0:51:13 > 0:51:16- Have you bought anything else locally?- The shop next door.
0:51:16 > 0:51:20And he was hoping to convert the two former shops into four houses,
0:51:20 > 0:51:22with a budget of £80,000 per house.
0:51:22 > 0:51:24But when we first returned,
0:51:24 > 0:51:27it was a case of best laid plans and all that.
0:51:29 > 0:51:32Normal planning permission only takes eight weeks,
0:51:32 > 0:51:38and this took three years, which kind of set us back a bit.
0:51:38 > 0:51:40Yeah, you could say that, Paul!
0:51:40 > 0:51:44But finally, after dealing with all the planning and listed building
0:51:44 > 0:51:47consent, as well as the buildings nearly being burned down,
0:51:47 > 0:51:49it was time to get the show on the road.
0:51:49 > 0:51:53# Get this party started
0:51:53 > 0:51:58# Get this party started right now. #
0:52:00 > 0:52:03And now, a further ten months on, we're back.
0:52:05 > 0:52:08Outside, and we have four smart doors.
0:52:08 > 0:52:12So, four completed houses? Here's hoping...
0:52:15 > 0:52:18Well, inside the former Chinese restaurant,
0:52:18 > 0:52:22everything has been taken away and the property has now been equally
0:52:22 > 0:52:24divided again into two houses.
0:52:27 > 0:52:30In the left-hand house,
0:52:30 > 0:52:33there's a lounge at the front and a large open-plan kitchen at the back,
0:52:33 > 0:52:37with patio doors to a garden.
0:52:37 > 0:52:41Upstairs on the first floor are two bedrooms and a bathroom,
0:52:41 > 0:52:44all with a lovely mix of modern and old.
0:52:48 > 0:52:51And on the top floor are two further bedrooms.
0:52:51 > 0:52:55Paul's done a great job here and I think he's pleased, too.
0:52:57 > 0:52:59Yeah, I've decided to move here.
0:52:59 > 0:53:02I live on a farm at the moment, which is very nice,
0:53:02 > 0:53:05but there's a nice village community here
0:53:05 > 0:53:09and it's a good location and everything.
0:53:09 > 0:53:14And the buildings, it's like being part of history living here.
0:53:16 > 0:53:19# History so strong
0:53:19 > 0:53:22# History so strong
0:53:22 > 0:53:26# History so strong. #
0:53:26 > 0:53:28So this will be Paul's home,
0:53:28 > 0:53:32while in the other half of the building there's a four-bedroom
0:53:32 > 0:53:35house which has the kitchen in the front upstairs,
0:53:35 > 0:53:38a large lounge at the rear
0:53:38 > 0:53:42and then four bedrooms and bathrooms across the upper two floors.
0:53:42 > 0:53:45# History so strong. #
0:53:47 > 0:53:50Paul also purchased the next-door building,
0:53:50 > 0:53:53and he's converted that into two three-bed houses.
0:53:53 > 0:53:57And the good news for him is he's found tenants for both of them.
0:53:57 > 0:54:01But it did mean we were unable to film inside.
0:54:01 > 0:54:04All four properties share a large parking area at the rear.
0:54:04 > 0:54:07Wow, this has been quite some project,
0:54:07 > 0:54:09but after all the delays getting the consent,
0:54:09 > 0:54:13were there many problems doing the actual work?
0:54:13 > 0:54:15# History so strong. #
0:54:15 > 0:54:17Once the structure was taken care of,
0:54:17 > 0:54:20once we knew we had a stable building,
0:54:20 > 0:54:23then it was just pretty much standard building work,
0:54:23 > 0:54:27apart from not using a level,
0:54:27 > 0:54:30because nothing's square or straight.
0:54:30 > 0:54:33# But I'm actually good
0:54:33 > 0:54:36# Can't help it if we're tilted
0:54:36 > 0:54:38# I am actually good
0:54:38 > 0:54:41# Can't help it if we're tilted. #
0:54:41 > 0:54:44But if the buildings themselves weren't always on the level,
0:54:44 > 0:54:46did Paul manage to balance the books,
0:54:46 > 0:54:52with a proposed total budget of £320,000 across the four houses?
0:54:52 > 0:54:56I think we probably spent about 360 on the four properties,
0:54:56 > 0:55:00and there's still a little bit more to spend.
0:55:00 > 0:55:03By the time we've finished, I think we'll probably be 10% over that.
0:55:03 > 0:55:07And with the total purchase price for the two separate buildings
0:55:07 > 0:55:11being £239,000, along with the likely £400,000 spent
0:55:11 > 0:55:13on the renovation work,
0:55:13 > 0:55:18Paul will have £639,000 invested into this project.
0:55:18 > 0:55:22And having taken nearly four years, was it worth the wait?
0:55:22 > 0:55:24What do two local estate agents think?
0:55:24 > 0:55:27The changes have been very well done.
0:55:27 > 0:55:29The layouts flow really nicely.
0:55:29 > 0:55:30I like the kitchen's open-plan,
0:55:30 > 0:55:34and the little snug lounges at the front work really well as well.
0:55:34 > 0:55:37It's amazing. They've maintained some of the traditional features,
0:55:37 > 0:55:39like the beams and the fireplaces.
0:55:39 > 0:55:44But he's added great value by using every space he can,
0:55:44 > 0:55:49like with the en suites, and come up with a really, really nice product.
0:55:51 > 0:55:53With one of the houses being Paul's new home,
0:55:53 > 0:55:56he intends to rent out the other three properties,
0:55:56 > 0:56:01but he does have a sizeable £639,000 investment tied up here.
0:56:01 > 0:56:04The agents agree on the valuations for both types of houses,
0:56:04 > 0:56:07so is there a profit to be made?
0:56:07 > 0:56:12For the two four bedroom properties I would value at £350,000 each.
0:56:12 > 0:56:17I would market the two three-bedroom properties at £300,000 each.
0:56:17 > 0:56:22So, the combined development is worth £1.3 million,
0:56:22 > 0:56:28which could see a potential pre-tax profit of £661,000.
0:56:28 > 0:56:32Wow! But for Paul, it's the rental income he's interested in.
0:56:32 > 0:56:36We'd market the two four-bedroom properties
0:56:36 > 0:56:39at £1,375 per calendar month,
0:56:39 > 0:56:42and we'd market the two three-bedroom properties
0:56:42 > 0:56:45at £1,100 per calendar month.
0:56:45 > 0:56:48If I was to market the four bedrooms,
0:56:48 > 0:56:51on the rental market they'd be £1,200 per calendar month each.
0:56:51 > 0:56:55If I was to put the three-bedroom properties on the rental market,
0:56:55 > 0:56:58I'd value them at £1,000 per calendar month each.
0:56:58 > 0:57:04I think the original expectations was about 1,200 per property,
0:57:04 > 0:57:06so that's good.
0:57:06 > 0:57:09We're in between, so that's very good.
0:57:09 > 0:57:12An average rent of £1,200 per calendar month
0:57:12 > 0:57:15would see a yield of around 9% per property.
0:57:15 > 0:57:19Not a bad return, even if it did take a while to get there.
0:57:19 > 0:57:23Mind you, four years' wait for a property
0:57:23 > 0:57:27that in part is 500 years old, well, it's just a drop in the ocean.
0:57:28 > 0:57:31I've enjoyed working on this property,
0:57:31 > 0:57:34and there's more of a connection to history
0:57:34 > 0:57:37and leaving something behind on working on a period property.
0:57:37 > 0:57:40So although there's challenges with it,
0:57:40 > 0:57:46I would always choose something with character rather than a box.
0:57:46 > 0:57:49# I'm going to be
0:57:49 > 0:57:53# A history maker in this land
0:57:55 > 0:57:57# I'm going to be
0:57:57 > 0:58:02# A history maker in this land. #
0:58:07 > 0:58:12We'll have more action from the auction rooms around the country very soon.
0:58:12 > 0:58:13Yes, you won't want to miss it.
0:58:13 > 0:58:16Make sure you join us then for more Homes Under The Hammer.
0:58:16 > 0:58:18- Bye-bye.- Goodbye.