0:00:02 > 0:00:06It's hard to part with your hard-earned cash to buy property,
0:00:06 > 0:00:08which used to be "safe as houses".
0:00:08 > 0:00:12It can be daunting at the best of times, but even more so now.
0:00:12 > 0:00:18But if you do your research, there are still bargains to be had buying your home under the hammer.
0:00:43 > 0:00:47One man's trash is another man's treasure.
0:00:47 > 0:00:49That's true in the property world.
0:00:49 > 0:00:53Sometimes it needs imagination to see behind that dodgy decor.
0:00:53 > 0:00:57What's in the treasure trove of properties today?
0:00:58 > 0:01:03'This mid-terrace in Stoke-on-Trent was a classic two up, two down.'
0:01:03 > 0:01:07A stud partition wall has created a useful extra room.
0:01:08 > 0:01:13'In Kent, you'll need to spend a penny or two on this health spa.'
0:01:13 > 0:01:17Lots of toilets round here, but it's all just a little bit grim.
0:01:18 > 0:01:22'We go back to this chapel in Nottinghamshire,
0:01:22 > 0:01:24'two years after we first visited.
0:01:24 > 0:01:28'The conversion into a beautiful home is now finished.'
0:01:30 > 0:01:36'All of these properties went to auction and we'll find out who bought them and what they paid
0:01:36 > 0:01:38'when they went under the hammer.'
0:01:42 > 0:01:47'This is Stoke-on-Trent, once home of the English pottery industry.
0:01:47 > 0:01:52'Like many areas, it's recently seen a crack appear in house prices.
0:01:52 > 0:01:56'The house I'm here to see is in a residential part of town.'
0:01:56 > 0:02:02This is Smallthorne, where 90% of the properties are standard terraces
0:02:02 > 0:02:06but the good news is it's a strong rental area.
0:02:06 > 0:02:08What's up for auction?
0:02:08 > 0:02:12This three-bedroom mid-terrace at a guide price of 50,000 quid.
0:02:12 > 0:02:15Sounds good to look round!
0:02:16 > 0:02:20I don't suppose too many surprises in store. Well, the red wall!
0:02:20 > 0:02:22That's a bit striking.
0:02:22 > 0:02:25You've got a fireplace, a gas fire.
0:02:25 > 0:02:31I'd like to see that opened up, but a reasonable sized front room. Into the rear of the property.
0:02:31 > 0:02:35Standard layout for this kind of house.
0:02:35 > 0:02:37Rear sitting room with a fire.
0:02:37 > 0:02:41Stick an open one in there. Then through to the kitchen.
0:02:41 > 0:02:45'It doesn't look too bad at all.
0:02:45 > 0:02:49'Plenty of cupboard space and, like so many terraces,
0:02:49 > 0:02:54'behind the kitchen is the bathroom which is in pretty good condition.
0:02:54 > 0:02:59'Keep the suite and concentrate your efforts on changing the paint!
0:03:02 > 0:03:06'Outside, there's a decent sized patio area
0:03:06 > 0:03:10'and rear access to the house, which is a bonus.
0:03:10 > 0:03:18'Judging by the different cladding, there's been a few bits added over the years.
0:03:18 > 0:03:20'Not bad at a guide price of 50,000.
0:03:20 > 0:03:23'The area might have an abundance of terraces,
0:03:23 > 0:03:28'but with its pebbledash exterior, this one stands out from the crowd.
0:03:28 > 0:03:32'One thing I'm happy to see is double glazing already in place.
0:03:32 > 0:03:35'That's a saving to start with.
0:03:35 > 0:03:39'So, downstairs ticks all the boxes.
0:03:39 > 0:03:43'In the front bedroom, it looks like the previous owner
0:03:43 > 0:03:47'started to strip the wallpaper and gave up!'
0:03:49 > 0:03:53A bit of redecoration required but nothing too major.
0:03:53 > 0:03:57Nothing too unusual, until you step across the stairway
0:03:57 > 0:04:00and come to what was the other bedroom.
0:04:00 > 0:04:05Somebody's converted it into two. It's now a three-bedroom house.
0:04:05 > 0:04:10Wouldn't have cost them very much. This is a stud partition wall.
0:04:10 > 0:04:14It's created a really useful extra room for a family house.
0:04:14 > 0:04:18I think, very imaginative use of space.
0:04:18 > 0:04:22'Having the bathroom downstairs, you can make better use of upstairs,
0:04:22 > 0:04:27'which is what's happened here, but it's a difficult decision to make.
0:04:27 > 0:04:34'Some people like a bathroom on the first floor. For others, a bathroom downstairs is fine.
0:04:34 > 0:04:36'To find out more,
0:04:36 > 0:04:40'I invited a local estate agent to take a look at the property.
0:04:40 > 0:04:44'How does it compare to terraced houses nearby?'
0:04:44 > 0:04:50A typical terraced property that needs a bit of love and attention.
0:04:50 > 0:04:56A bit of penetrating damp upstairs, possibly rising damp downstairs.
0:04:56 > 0:05:01Wiring needs a bit of updating, other than that it's cosmetic.
0:05:01 > 0:05:03'What would he advise?
0:05:03 > 0:05:06'What are the best options here?'
0:05:06 > 0:05:13Splitting the second bedroom, making the property a three-bedroom is a good move.
0:05:13 > 0:05:16For people with two children, on a budget,
0:05:16 > 0:05:21this fills a nice little niche market.
0:05:21 > 0:05:26The rental market would look to pay £375 per calendar month.
0:05:26 > 0:05:29'So it's not an astronomical sum.
0:05:29 > 0:05:35'You'd have to balance that against the guide price of 50,000.
0:05:35 > 0:05:40'I'd like to know what the property could be worth once refurbished.'
0:05:42 > 0:05:46Once this property's improved, cosmetics are done,
0:05:46 > 0:05:49at the moment, it's still only worth about £60,000.
0:05:49 > 0:05:54'That's £10,000 over the auction guide price of £50,000,
0:05:54 > 0:05:59'but a cautionary warning there for any investor.
0:05:59 > 0:06:04'Fancy fittings and appliances can mean money down the drain
0:06:04 > 0:06:09'if the market puts a ceiling on what people are prepared to pay.'
0:06:09 > 0:06:13That third bedroom may be small but it does give this property
0:06:13 > 0:06:17a competitive advantage over similar properties in the area.
0:06:17 > 0:06:23For a £50,000 guide price, you can't go far wrong. Let's find out what happened at the auction.
0:06:23 > 0:06:26Lot 35. Three-bedroom mid-terrace house.
0:06:28 > 0:06:3340, can we say? 40 I'm bid. Thank you. At £40,000.
0:06:33 > 0:06:3545 can I say now?
0:06:35 > 0:06:3945, thank you. At £45,000.
0:06:39 > 0:06:4350, can I say? I'll take one if it helps.
0:06:43 > 0:06:47£46,000. At £46,000.
0:06:47 > 0:06:49£47,000.
0:06:49 > 0:06:5348? £48,000.
0:06:53 > 0:06:56One to you? Yeah? £49,000.
0:06:56 > 0:07:00£50,000. 51?
0:07:00 > 0:07:03No. At £50,000. Bid's there and I'm selling it.
0:07:03 > 0:07:05At £50,000.
0:07:05 > 0:07:09New bidder. £50,500.
0:07:09 > 0:07:1151? 51.
0:07:11 > 0:07:1551 and a half.
0:07:15 > 0:07:1752. 52 and a half?
0:07:17 > 0:07:2052 and a half.
0:07:20 > 0:07:2253? No? Are you sure?
0:07:22 > 0:07:2552,500, then, for the first time.
0:07:25 > 0:07:2852,500 second time.
0:07:28 > 0:07:32Third and final time at £52,500...
0:07:33 > 0:07:35Your lot, sir.
0:07:35 > 0:07:40'That successful bid of £52,500 was made by brothers Steve and Tony.
0:07:40 > 0:07:44'It's their first development project together.
0:07:44 > 0:07:49'I met with them back at the house to find out about their plans.'
0:07:49 > 0:07:54- Steve, Tony, congratulations. Got a nice little place.- Thank you.
0:07:54 > 0:07:59- Tell me about yourselves. What do you do?- I'm a builder by trade.
0:07:59 > 0:08:02- Tony, what do you do?- I'm a chef. - A chef?- Yeah.
0:08:02 > 0:08:06- Is that going to be useful? - Pop over chippy for his dinner.
0:08:06 > 0:08:10Keep me eye on him, over his shoulder.
0:08:10 > 0:08:15How did this venture, working together in property, come about?
0:08:15 > 0:08:19It's something Steve's always thought about doing.
0:08:19 > 0:08:26- We thought, how the market is, it's now or never.- Right. - Just take it one step at a time.
0:08:26 > 0:08:32- It's the prices that are appealing? - Yeah, seem to have hit rock bottom.
0:08:32 > 0:08:35They can only go back up.
0:08:35 > 0:08:38So, why this particular property?
0:08:38 > 0:08:46We've looked at a few. A couple of them pulled out. Another wanted a bit too much money.
0:08:46 > 0:08:51The ones that we went for had gone and this one was a shot in the blue.
0:08:51 > 0:08:56We hadn't even looked at it. He just said, "We're having this one."
0:08:56 > 0:08:58So what was going through your mind?
0:08:58 > 0:09:01It was just total disbelief.
0:09:01 > 0:09:06When he said, "Sold. It's yours." I was like, "Has that happened?"
0:09:06 > 0:09:11'So, a spur-of-the-moment purchase for brothers with different skills.
0:09:11 > 0:09:15'Steve's experience is going to be useful.
0:09:15 > 0:09:20'They both fell for the place just from the photo.'
0:09:20 > 0:09:24- You hadn't seen it?- No.- A little picture in the auction book.
0:09:24 > 0:09:27- You hadn't visited it, then?- No.
0:09:27 > 0:09:31- What about the legal pack? - I've not had time to see it, yet.
0:09:31 > 0:09:36You have actually bought the house. It's probably a bit late.
0:09:36 > 0:09:39'Steve's got plenty of experience.
0:09:39 > 0:09:43'He's lived in Spain for four years, where he set up a pub.
0:09:43 > 0:09:47'He's built property out there, one of which he's renting out.
0:09:47 > 0:09:51'I doubt if this house will need pools or balconies.'
0:09:51 > 0:09:54What's the priorities for jobs on this one?
0:09:54 > 0:09:58There's a little bit of damp. Probably put a damp course in.
0:09:58 > 0:10:03- What about the Artex gone mad? - That is shocking Artex!
0:10:03 > 0:10:06Talk me through what you're going to do.
0:10:06 > 0:10:10Perhaps a new kitchen and bathroom and decorate it right through.
0:10:10 > 0:10:14- It's not in bad order. - We're happy with it.
0:10:14 > 0:10:18- The bigger plan is to do what? - Rent it for three or four years.
0:10:18 > 0:10:24When the market goes back up again, perhaps think about selling it.
0:10:24 > 0:10:28'Steve and Tony paid £52,500 for the house and will save money
0:10:28 > 0:10:30'doing some work themselves.
0:10:30 > 0:10:34'No doubt Steve's building mates will lend a hand.'
0:10:34 > 0:10:39- What time scale have we got? - I'd say two, three months.
0:10:39 > 0:10:43- Any idea how much you'd get for rent?- 350, 400 a month.
0:10:43 > 0:10:45Depends whether it's furnished.
0:10:45 > 0:10:50- That'll bring a reasonable return. - An income. That's what we want.
0:10:50 > 0:10:55Congratulations and good luck. Look forward to seeing how you get on.
0:10:55 > 0:10:56All right.
0:10:56 > 0:11:01'The brothers are going 50-50 on their first joint development.
0:11:01 > 0:11:06'I wish they'd had a look around before they bought it!'
0:11:10 > 0:11:15So, Steve and Tony breaking all the rules when it comes to this place.
0:11:15 > 0:11:19Not reading the legal pack. Not visiting the property before.
0:11:19 > 0:11:24Makes me cross. Anyway, they have ended up with a reasonable property.
0:11:24 > 0:11:29How will they get on splitting the workload? I don't know.
0:11:29 > 0:11:32Have they worked together before? No.
0:11:32 > 0:11:35Find out how they get on later in the show.
0:11:40 > 0:11:45For the next property, I've headed south to Kent.
0:11:47 > 0:11:52We're in historic Rochester today, one of the Medway towns in Kent.
0:11:52 > 0:11:56Charles Dickens, the author, used to live nearby.
0:11:56 > 0:11:59He based many of his novels in this area.
0:11:59 > 0:12:01The town is enjoying investment.
0:12:01 > 0:12:06A 74-acre brownfield site by the river is being developed
0:12:06 > 0:12:09with approximately 1,000 residences being built.
0:12:09 > 0:12:11Great news for the area.
0:12:11 > 0:12:15I'm here to view a property on the High Street
0:12:15 > 0:12:18in a local conservation area.
0:12:18 > 0:12:25We're here to see a commercial property, this four-storey building.
0:12:25 > 0:12:29Until recently, it was a health spa but, as you can see,
0:12:29 > 0:12:32it's on a busy intersection so there's no parking.
0:12:32 > 0:12:37But we are close to the station, just over there. Let's look inside.
0:12:37 > 0:12:42Its guide price at auction was £160,000 to £170,000.
0:12:42 > 0:12:47I was expecting a very clean and clinical reception area.
0:12:47 > 0:12:52It's more like a run-down office with no character at all inside.
0:12:52 > 0:12:58This is a conservation area so you are restricted with what you could do to the frontage,
0:12:58 > 0:13:02with regards to the windows and putting signs up.
0:13:02 > 0:13:07There's a couple of floors upstairs I've got to investigate.
0:13:07 > 0:13:11First impressions down here aren't great.
0:13:11 > 0:13:15The decoration's seen better days and needs freshening up.
0:13:15 > 0:13:20Climb up one flight of stairs and there's a clue about the former use.
0:13:22 > 0:13:27Up here on the first floor is the sauna and shower area.
0:13:27 > 0:13:31The steam room through there, lots of toilets round here,
0:13:31 > 0:13:35but it's all just a little bit grim, isn't it?
0:13:35 > 0:13:39But forget what it looks like and think about what it could be.
0:13:39 > 0:13:41It's a freehold commercial premises.
0:13:41 > 0:13:46If you set up a business here, you have long-term security.
0:13:46 > 0:13:48That is key for any investor.
0:13:50 > 0:13:53You might need the steam from the sauna to clean up!
0:13:53 > 0:13:57On the second floor, the decor's not much better.
0:13:57 > 0:14:02The lilac room is a good size but it could be even bigger
0:14:02 > 0:14:05if you removed the false ceiling.
0:14:05 > 0:14:10As for the adjacent black room, well, that's just really strange.
0:14:16 > 0:14:19There's a kitchen on this floor,
0:14:19 > 0:14:24plus an area for the boiler, full of pipes and hot water tanks.
0:14:24 > 0:14:27The building has original Crittall metal windows
0:14:27 > 0:14:31so you can really hear the traffic noise.
0:14:31 > 0:14:36As it's a conservation area, you may have to keep them.
0:14:36 > 0:14:38Three down and one floor to go.
0:14:38 > 0:14:43The one right at the top is just two interconnecting rooms.
0:14:43 > 0:14:48As a health and beauty spa, this had D2 business classing,
0:14:48 > 0:14:52but it had a restriction so it's only been used as a spa
0:14:52 > 0:14:57and not other D2 use such as cinema, dance venue or bingo hall.
0:14:57 > 0:15:02Before that, it was a newsagent's with residential accommodation here.
0:15:02 > 0:15:09Hopefully, it wouldn't be difficult to get permission to convert the other floors into residential.
0:15:09 > 0:15:13I think it would be quite easy to convert this back into flats.
0:15:13 > 0:15:17You would really have to think about internal layout.
0:15:17 > 0:15:21This floor would be classed as a studio flat.
0:15:21 > 0:15:28So we've got four rather shabby floors here but lots of potential.
0:15:28 > 0:15:33There's also one very small bonus at the back of the property.
0:15:33 > 0:15:38You can hardly call this outside space a garden
0:15:38 > 0:15:43but the interesting thing is, if you do want to convert this into flats,
0:15:43 > 0:15:48you've got a separate rear entrance, which gives you more options.
0:15:49 > 0:15:55'I invited a local estate agent along to take a look
0:15:55 > 0:15:59'and try to gauge the potential for this former spa.
0:15:59 > 0:16:03'What options does this property expert see here?'
0:16:03 > 0:16:06It's a really good property. It has a lot of uses.
0:16:06 > 0:16:09I think, possibly, there won't be
0:16:09 > 0:16:12any possibility of turning the ground floor to residential.
0:16:12 > 0:16:15They will keep that as office use.
0:16:15 > 0:16:20But I think that parts of the above could be made into a nice flat.
0:16:20 > 0:16:25'Knowing the local area, how many flats could you fit upstairs?'
0:16:25 > 0:16:30With the layout, you could possibly either have one very large flat
0:16:30 > 0:16:32on two levels,
0:16:32 > 0:16:38or alternatively, two one-bedroom flats on each level.
0:16:38 > 0:16:45'One thing any buy-to-let investor wants to know is how much income the property could generate.
0:16:45 > 0:16:49'What are the rental returns likely to be?'
0:16:49 > 0:16:55The commercial rent, if you were to have the ground floor as an office,
0:16:55 > 0:17:01you would be looking at £100 a week, probably about £5,200 a year.
0:17:01 > 0:17:04For the flats, depending on how the accesses are,
0:17:04 > 0:17:11the one-bedroom flats, if you had two of those, you'd get at least £550 per calendar month for those.
0:17:11 > 0:17:16'The building went to auction at a guide price of £160,000 to £170,000.
0:17:16 > 0:17:21'If renovated, what would its resale value be?'
0:17:21 > 0:17:25The easiest thing for this property is to sell it as one block.
0:17:25 > 0:17:30The access is probably too difficult to sell the flats off individually.
0:17:30 > 0:17:36On a good market, once the work had been renovated and the flats done,
0:17:36 > 0:17:41somewhere between £250,000 and £300,000 for it.
0:17:43 > 0:17:49'Potential profits, then, but the work needed to convert this spa
0:17:49 > 0:17:52'could get your budget in a bit of a sweat.'
0:17:52 > 0:17:58This property is great for commuters, minutes from the station.
0:17:58 > 0:18:00It offers plenty of options.
0:18:00 > 0:18:03It could stay as a purely commercial premises,
0:18:03 > 0:18:07or it could be converted completely into residential.
0:18:07 > 0:18:11But did it attract the bidders at auction? Let's find out.
0:18:11 > 0:18:14Let's move on, then, to lot 112.
0:18:14 > 0:18:17Lots of potential here. Where are you going to start me?
0:18:17 > 0:18:22Guided at 160, 170. Start me at 160? £160,000?
0:18:22 > 0:18:24Start me at 150, then. At 150...
0:18:24 > 0:18:27150, I'm on the way. 150.
0:18:27 > 0:18:31£150,000 I've got on the left. 152, now.
0:18:31 > 0:18:33152 I've got. 154?
0:18:33 > 0:18:37154? 154 and six?
0:18:37 > 0:18:42All those premises in Rochester and I'm looking for just £156,000.
0:18:42 > 0:18:44156 I've got now. 158?
0:18:44 > 0:18:47158? 158?
0:18:47 > 0:18:49158 I've got. And 160 now, make it?
0:18:49 > 0:18:51At 160?
0:18:51 > 0:18:58All done at £158,000? No? We're a bit short. Come and talk to us.
0:19:01 > 0:19:05'The rundown health spa in Rochester didn't reach its reserve
0:19:05 > 0:19:08'and was withdrawn from the auction.
0:19:08 > 0:19:13'Spencer, a local estate agent and property developer, made a deal.
0:19:13 > 0:19:18'I met up with him back at the property to find out more.'
0:19:18 > 0:19:25- I made a pre-auction offer. - Of how much?- £160,000. Which the vendor turned down.
0:19:25 > 0:19:30Then, at the room, I could see the bidding slowing down to about 157.
0:19:30 > 0:19:32The final bid was 158.
0:19:32 > 0:19:37I approached the auctioneer after and tied up the deal at 160.
0:19:37 > 0:19:42- Why did you want to buy this?- My company is trading 300 metres away.
0:19:42 > 0:19:45My lease runs out in six months.
0:19:45 > 0:19:49Hopefully, by the time the work is done, I'll be ready to move.
0:19:49 > 0:19:54- To use it as an estate agency requires A2 usage, doesn't it?- Yes.
0:19:54 > 0:19:58- Have you spoken to the planners? - I have. It's a tricky situation.
0:19:58 > 0:20:03Medway Council are reluctant to grant A2 use specifically.
0:20:03 > 0:20:09But given this building's previous use, I'd like to think it's an upgrade.
0:20:09 > 0:20:13'The building's D2 use allowed it to be a health spa.
0:20:13 > 0:20:19'Spencer needs to change that to A2 use, a different category, to move his estate agent here.'
0:20:19 > 0:20:23What if you don't get the usage? Do you have a Plan B?
0:20:23 > 0:20:26The Plan B is to appeal!
0:20:26 > 0:20:30Plan C would be, unfortunately, to rent out the commercial premises.
0:20:30 > 0:20:36It used to have flats above. You're hoping to convert it into flats.
0:20:36 > 0:20:41- What will you do in terms of layout? It's small in some spaces.- Yes.
0:20:41 > 0:20:45The floor we're on is going to be the bathroom,
0:20:45 > 0:20:49the open-plan lounge-diner in an L-shape.
0:20:49 > 0:20:52Upstairs, we'll create two double bedrooms.
0:20:52 > 0:20:55The space will actually work really well.
0:20:55 > 0:20:59'Squeezing two double bedrooms up here might be a challenge.
0:20:59 > 0:21:06'Spencer's property portfolio includes very high-spec accommodation in London's Docklands.
0:21:06 > 0:21:10'He's looking for a high quality finish here, too.
0:21:10 > 0:21:14'This is his biggest refurbishment project so far.
0:21:14 > 0:21:18'Of course, it will all depend on the planners.'
0:21:18 > 0:21:21How long do you think it will take?
0:21:21 > 0:21:24Optimistically, I'd say three months.
0:21:24 > 0:21:29Knowing what builders are like, and we've got to work with the planners
0:21:29 > 0:21:36and the local council who are quoting a 12-week turnaround, three months is possibly optimistic.
0:21:36 > 0:21:39Have you got a budget? It's in disrepair.
0:21:39 > 0:21:43I'd like to keep it between 30 and 35.
0:21:43 > 0:21:46But I'm sure we'll go over budget.
0:21:46 > 0:21:50It's a conservation area, so you've got to be careful with the windows.
0:21:50 > 0:21:55That's right. They're keen on us retaining the Crittall windows.
0:21:55 > 0:22:00The architect has mentioned that we'll have to have a sound engineer
0:22:00 > 0:22:03to cool the sound from the road.
0:22:03 > 0:22:08That will necessitate some modification of the windows.
0:22:08 > 0:22:14Crittall do double-glazed windows with original frames. That's a possible expense.
0:22:14 > 0:22:17- You'll need that soundproofing.- Yes.
0:22:17 > 0:22:22Those original single-glazed Crittall windows with metal frames
0:22:22 > 0:22:28aren't just draughty, they let in noise and can be costly to replace.
0:22:28 > 0:22:33Good luck. Let's hope you can turn downstairs into an estate agency.
0:22:33 > 0:22:37- Good luck with the A2 usage. - Thank you.- Well done.
0:22:37 > 0:22:45I hope Spencer's finances don't vaporise when renovating this former health spa.
0:22:45 > 0:22:48There's an awful lot of work to do.
0:22:48 > 0:22:52I think Spencer did really well to restrain himself at the auction.
0:22:52 > 0:22:56He's got a great location for his business.
0:22:56 > 0:23:03Let's hope he gets that A2 change of use so he can move his agency here before his lease runs out.
0:23:03 > 0:23:07Find out how the negotiations go later in the programme.
0:23:08 > 0:23:11'Coming up, two and a half years after our first visit,
0:23:11 > 0:23:16'we can finally show you the fabulous conversion of this chapel.'
0:23:18 > 0:23:23'We go back to Kent, where Spencer's a bit cheesed off.'
0:23:23 > 0:23:27There were holes in the walls, in the floors, holes in the holes.
0:23:29 > 0:23:33'First, we return to the tiny terrace with its extra bedroom.'
0:23:33 > 0:23:37It's quite spacious, as far as third bedrooms go.
0:23:41 > 0:23:44'We're back in Smallthorne in Stoke-on-Trent,
0:23:44 > 0:23:50'where Tony and his brother Steve paid £52,500 for this mid-terrace.
0:23:50 > 0:23:53'Steve's a builder. Tony's a chef.
0:23:53 > 0:23:56'They hoped their purchase would cook up a nice income.
0:23:56 > 0:24:00'It's a year since we first visited.
0:24:00 > 0:24:05'We've returned to see how the brothers got on.
0:24:05 > 0:24:10'From the road, after 12 months, there's not a lot of difference.
0:24:10 > 0:24:14'Inside, however, there have been structural changes.
0:24:14 > 0:24:18'The wall dividing the downstairs rooms has been removed,
0:24:18 > 0:24:22'creating a lovely large living area.
0:24:25 > 0:24:30'A new staircase has been built and relocated to the side
0:24:30 > 0:24:32'to give valuable space.'
0:24:32 > 0:24:37These are the main changes. This is a brand new staircase.
0:24:37 > 0:24:41We put it this way to maximise space downstairs.
0:24:41 > 0:24:46If the old staircase was here, that was the master bedroom.
0:24:46 > 0:24:49We changed that into two smaller bedrooms.
0:24:49 > 0:24:52Now this one is the master bedroom.
0:24:52 > 0:24:58'So there are still three bedrooms but they have been reconfigured.'
0:24:58 > 0:25:04We got windows from a salvage yard, which worked out quite cheap.
0:25:04 > 0:25:07'The house had been converted into three bedrooms
0:25:07 > 0:25:10'by dividing the rear bedroom into two.
0:25:10 > 0:25:15'Thanks to the new staircase, there is one large bedroom at the back.
0:25:15 > 0:25:20'The spacious front-facing bedroom has been divided into two bedrooms.
0:25:20 > 0:25:27'Progress has been slow, as Steve needed to go to Spain to sort out a property he owns there.
0:25:27 > 0:25:32'The brothers also bought another house together for renovation.
0:25:32 > 0:25:38'Despite these distractions, Steve and Tony have done really well.'
0:25:38 > 0:25:41We got one in Manchester at the same time,
0:25:41 > 0:25:46so we've been jumping between the two to get them both finished.
0:25:46 > 0:25:51- We're nearly there on this one. - It took us four and a half months.
0:25:51 > 0:25:54We thought, "What do you think about this?"
0:25:54 > 0:25:59We did it as we were going along. It's turned out all right, I think.
0:25:59 > 0:26:02'The hardest work has been completed.
0:26:02 > 0:26:07'There's the decorating and the final touches still to do.
0:26:07 > 0:26:11'As Steve discovered, that can take longer than expected.'
0:26:11 > 0:26:17We put a new bathroom in. Finished tiling it 3 o'clock last night.
0:26:17 > 0:26:20A new kitchen, combi boiler.
0:26:20 > 0:26:25The kitchen we managed to get a good deal on with the cooker.
0:26:25 > 0:26:27It comes to less than £1,000.
0:26:27 > 0:26:32We need to tile under there, tile this side.
0:26:32 > 0:26:34A bit of touching up and we're done.
0:26:34 > 0:26:39'I bet Tony, being a chef, can't wait till the kitchen's finished.
0:26:39 > 0:26:42'But who's been doing all the work?'
0:26:42 > 0:26:46Compared to my day job as a chef, I've enjoyed it.
0:26:46 > 0:26:48It's been really challenging.
0:26:48 > 0:26:53We've had a couple of friends helping us, brothers-in-law
0:26:53 > 0:26:58helping on the finishing stage, but we've done most the work ourselves.
0:26:58 > 0:27:01'They paid £52,500 on auction day
0:27:01 > 0:27:05'but how much have they spent on refurbishment?
0:27:05 > 0:27:10'Have their bargains in the kitchen kept them on budget?'
0:27:10 > 0:27:14A lot we got from a salvage yard which works out loads cheaper.
0:27:14 > 0:27:18The new window upstairs, which was £15.
0:27:18 > 0:27:21Then we got two RSJs for £60 each.
0:27:21 > 0:27:23Originally, we were under.
0:27:23 > 0:27:29Then Steve decides to put a combi boiler in, so that took us to touching point.
0:27:29 > 0:27:32The carpet will take us a little bit over.
0:27:32 > 0:27:37With the carpets, we're coming in at £5,300.
0:27:37 > 0:27:41'Once the carpet's laid and the house decorated, what's the plan?
0:27:41 > 0:27:43'To sell or look for tenants?'
0:27:43 > 0:27:47I think we're just going to rent, get someone in,
0:27:47 > 0:27:51hold selling till the market picks up again.
0:27:51 > 0:27:54In 12 months', two years' time, have a look at it again.
0:27:58 > 0:28:03'Time to see how two local experts rate the prospects for the house.'
0:28:03 > 0:28:06The standard of work seems high.
0:28:06 > 0:28:12I believe the purchasers have done quite a bit themselves.
0:28:12 > 0:28:17They've stripped it back to brick and done the whole house.
0:28:17 > 0:28:22Creating a through-lounge is a good idea and the staircase is a feature.
0:28:22 > 0:28:27The stairs have been moved, creating more room upstairs
0:28:27 > 0:28:31and also, a nice big reception room downstairs.
0:28:31 > 0:28:34One or two corners have been cut.
0:28:34 > 0:28:36Generally, it's reasonable quality.
0:28:36 > 0:28:41The only other potential is paying attention outside in the yard area.
0:28:41 > 0:28:46'OK, so how much could the house be worth once completed?
0:28:46 > 0:28:51'The brothers paid £52,500 at auction and £5,300 on the work.
0:28:51 > 0:28:56'Almost £58,000 in total. Could they make any profit here?'
0:28:58 > 0:29:00From a resale figure point of view,
0:29:00 > 0:29:04I'd suggest somewhere around the £75,000 mark.
0:29:04 > 0:29:08I'd put the property on the market for £74,950.
0:29:08 > 0:29:14'Is that £17,000 gross profit in line with expectations?'
0:29:14 > 0:29:17What we expected. I'm quite happy with that.
0:29:17 > 0:29:20'Or are they still looking for a tenant?'
0:29:20 > 0:29:26I think we plan to rent. We have someone in mind.
0:29:26 > 0:29:31'So how much is the typical rent in this part of town?'
0:29:31 > 0:29:36I would put a rental value of £395 per calendar month.
0:29:36 > 0:29:40Somewhere around £400 to £425 per calendar month.
0:29:40 > 0:29:45Well, the person we have in mind, we arranged at 425,
0:29:45 > 0:29:47so that's about right.
0:29:47 > 0:29:52'That's £5,100 a year, nearly a 9% return on their investment.
0:29:52 > 0:29:55'Renting does look like the best bet.'
0:29:55 > 0:29:58Oh, yeah. Definitely.
0:29:58 > 0:30:02In the current climate, you've got to sit on your investment.
0:30:02 > 0:30:06'What's next for bricklayer Steve and Tony the chef?
0:30:06 > 0:30:10'It looks like they've caught the property bug.'
0:30:10 > 0:30:15We've got one in Manchester to finish, then we'll buy another one.
0:30:15 > 0:30:18Auction time again.
0:30:21 > 0:30:26'We're now going back to a property I visited in...
0:30:26 > 0:30:28'Love WAS in the air.'
0:30:28 > 0:30:33I like to think there's a romantic property developer in all of us.
0:30:33 > 0:30:38The project that's up for auction could be absolutely ideal.
0:30:38 > 0:30:44I'm in a village called Wigsley, just outside Lincoln, but actually in Nottinghamshire.
0:30:44 > 0:30:47On offer is a former Methodist chapel.
0:30:47 > 0:30:49That's got to get you excited.
0:30:49 > 0:30:55It could be brilliant. However, look what you find when you walk up.
0:30:55 > 0:30:57A huge green door.
0:30:57 > 0:31:01Look like it's not so much St Stephen's as Shakin' Stevens.
0:31:01 > 0:31:03# Green door
0:31:03 > 0:31:06# What's that secret you're keeping? #
0:31:06 > 0:31:11'The chapel went to auction at a guide price of £100,000.
0:31:11 > 0:31:16'I'm excited about the construction of the place. Look at the detail!
0:31:16 > 0:31:18'It looks like a big property,
0:31:18 > 0:31:23'plus, there are two extra green doors at the back of the building.'
0:31:23 > 0:31:27Whoever owned this place got a job lot of green paint.
0:31:27 > 0:31:32Through another green door, through to this rear area.
0:31:32 > 0:31:36It's really unusual, a kind of kitchen up to a little bathroom.
0:31:36 > 0:31:40Then through into this which, I imagine,
0:31:40 > 0:31:44was sort of the ancillary area of the Methodist chapel.
0:31:44 > 0:31:48Not a bad size space. Nice wood panelling. Very cold.
0:31:48 > 0:31:52Obviously, no central heating. A few nice features.
0:31:52 > 0:31:55Nice fireplace, but I get a feeling
0:31:55 > 0:31:56there's more elsewhere.
0:31:58 > 0:32:02That's nice to have, but what you're buying really is this,
0:32:02 > 0:32:05the main part of the old chapel.
0:32:05 > 0:32:11Imagine the pews here, the pulpit there, a few things on the wall.
0:32:11 > 0:32:17If you're doing a restoration, there are things you need to take into consideration.
0:32:17 > 0:32:22Often, one of the biggest things is the roof trusses.
0:32:22 > 0:32:25See this massive piece of wood going across?
0:32:25 > 0:32:29That forms the main structural part of the roof.
0:32:29 > 0:32:33In an ideal world, you'd want to create another floor.
0:32:33 > 0:32:35To get an idea of the problems,
0:32:35 > 0:32:41the minimum height of a ceiling is above my head height there,
0:32:41 > 0:32:44eight or so feet, up to there.
0:32:44 > 0:32:49By the time you've got a floor with the joists and the soundproofing,
0:32:49 > 0:32:52you can add about that much on.
0:32:52 > 0:32:56That takes us up another rung or two on the ladder.
0:32:56 > 0:33:01You won't have enough head height underneath these cross-members.
0:33:01 > 0:33:04You've got major constructional work
0:33:04 > 0:33:08but once you're over those issues, you've got a very nice space.
0:33:08 > 0:33:13'This former Methodist chapel shows signs of its religious past,
0:33:13 > 0:33:17'but the services have long since ceased.
0:33:17 > 0:33:20'The building has been used as a garage,
0:33:20 > 0:33:23'so at least some "servicing" continued
0:33:23 > 0:33:26'as the mechanic's pit is still here.'
0:33:30 > 0:33:34So, a property with potential, as they say,
0:33:34 > 0:33:39but a lot of work and you haven't got any land with this,
0:33:39 > 0:33:42which I think will be an issue once it's finished.
0:33:42 > 0:33:45Let's find out who bought it at the auction.
0:33:45 > 0:33:51We move on now to lot number 25, a substantial and attractive
0:33:51 > 0:33:55former Methodist chapel in the village of Wigsley.
0:33:55 > 0:33:59Start me at 90,000 for it. 90?
0:33:59 > 0:34:01Well, 80, if you like.
0:34:03 > 0:34:07Thank you. I've got you, sir. I don't know how I missed you.
0:34:07 > 0:34:11At £80,000. 82, also at the back of the room.
0:34:11 > 0:34:1384. 86.
0:34:13 > 0:34:1688. 90,000.
0:34:16 > 0:34:2092. 94, three of you.
0:34:20 > 0:34:24Both of you out now. The bid is seated at £94,000.
0:34:24 > 0:34:2596.
0:34:25 > 0:34:2798.
0:34:27 > 0:34:30100,000. At £100,000.
0:34:30 > 0:34:34At 102. 104. At 104.
0:34:34 > 0:34:37106. 106.
0:34:37 > 0:34:39108.
0:34:39 > 0:34:41At £108,000.
0:34:41 > 0:34:43110. At 110.
0:34:43 > 0:34:47Lady's bid seated at 110. Both of you at the back are out.
0:34:47 > 0:34:49- 112. - And 112. Thank you.
0:34:49 > 0:34:52Mr Walter. At £112,000.
0:34:52 > 0:34:5414, may I say? 114.
0:34:54 > 0:34:56114.
0:34:56 > 0:34:58116. 116.
0:34:58 > 0:35:00At 116. 118.
0:35:00 > 0:35:05120. At £120,000. Are you sure? I'll give you a minute to think.
0:35:05 > 0:35:08Bid is on my left at £120,000.
0:35:08 > 0:35:11One, if you like. At £120,000.
0:35:11 > 0:35:16Selling once at £120,000.
0:35:16 > 0:35:20Going twice at £120,000.
0:35:20 > 0:35:25Are we all done at £120,000...?
0:35:25 > 0:35:30Sold to Mr Edward Walter on behalf of a client. £120,000.
0:35:30 > 0:35:36'That bidder who paid 20% over the guide price isn't the new owner.
0:35:36 > 0:35:38'He was bidding on behalf of Eric,
0:35:38 > 0:35:42'who has strong associations with the village.
0:35:42 > 0:35:46'Eric's been in the building trade all his life
0:35:46 > 0:35:50'and owns his own company constructing new homes.
0:35:50 > 0:35:54'I met him at the chapel to hear about his plans.'
0:35:54 > 0:35:59- Why did you want to buy this? - Memories from being a boy.- Really?
0:35:59 > 0:36:03- I was born in the house next door. - Oh, wow!
0:36:03 > 0:36:08Then, when it was sold on as an industrial...home sort of thing,
0:36:08 > 0:36:10to an Irishman,
0:36:10 > 0:36:15I spent a lot of hours in there watching him repairing vehicles.
0:36:15 > 0:36:20He moved on and the last person that had it was a signwriter.
0:36:20 > 0:36:24He then left and it went up for sale.
0:36:24 > 0:36:29So, having been born in the village, I thought, "I ought to keep that."
0:36:29 > 0:36:36- Do you remember it as a chapel? - I can't remember it being a chapel where people came to pray.
0:36:36 > 0:36:40But I remember it being a chapel in 1953, at the coronation.
0:36:40 > 0:36:43We went in... I was eight years old.
0:36:43 > 0:36:48We went into there and all got our mugs and had a coronation party.
0:36:48 > 0:36:51With long tables?
0:36:51 > 0:36:53Yeah.
0:36:53 > 0:36:59Well, this was the room which was laid out for that type of thing.
0:36:59 > 0:37:04How does it feel to own it? You've known it for all your life.
0:37:04 > 0:37:08Well, it feels as though I've got a lot of work to do.
0:37:08 > 0:37:14- Talk me through what you'll do. - We'll put a mezzanine floor in.
0:37:14 > 0:37:18The main area will probably be bedrooms with a passage down.
0:37:18 > 0:37:24A nice porch at the front, and make it possibly a four-bedroom property.
0:37:24 > 0:37:28'Eric's well qualified. He started as a joiner when he was 15.
0:37:28 > 0:37:33'His house building company has won awards for high quality.'
0:37:33 > 0:37:39It doesn't have any land with it. We're in next door's garden here.
0:37:39 > 0:37:44- Is that going to be a problem for resale?- No, I don't think so.
0:37:44 > 0:37:48The house next door and the blacksmith's shop
0:37:48 > 0:37:52- belong to myself and my sister. - Right!
0:37:52 > 0:37:57If the planners allow us, we could incorporate some of that land
0:37:57 > 0:38:03into this building so that it made it a much more saleable prospect.
0:38:03 > 0:38:05- Do it up and sell it on?- Yeah.
0:38:05 > 0:38:10- How long is it going to take? - I'd think, probably over 12 months,
0:38:10 > 0:38:13from now, before it'll be finished.
0:38:13 > 0:38:18- How much is it going to cost? - Between 100,000 and 150,000.
0:38:18 > 0:38:20- To do the work?- To do the work.
0:38:20 > 0:38:24'Local lad Eric and his family are taking over the village!
0:38:24 > 0:38:28'His building company has just completed an impressive development
0:38:28 > 0:38:33'around an old barn opposite the chapel.'
0:38:33 > 0:38:39- We can expect the same level of quality?- Yeah. It'll be done right. It will be nice.
0:38:39 > 0:38:45'Later in the show, you can discover why, when we first returned,
0:38:45 > 0:38:50'Eric was getting very cross with all the delays.'
0:38:50 > 0:38:54I've only had the one meeting with the planners.
0:38:54 > 0:38:58I just wish they would make decisions a lot quicker.
0:38:58 > 0:39:02'Eric's prayers for the chapel have been answered.
0:39:02 > 0:39:07'Later, we'll show you the beautiful conversion he finally achieved
0:39:07 > 0:39:11'over two years after the hammer fell.'
0:39:13 > 0:39:18When it comes to property, you never know what's going to happen.
0:39:18 > 0:39:21Peel off wallpaper and plaster may follow.
0:39:21 > 0:39:25It's important to have time on your side and a contingency budget.
0:39:25 > 0:39:29What happened to the plucky purchasers on today's show?
0:39:32 > 0:39:36'We're returning to this busy junction in Rochester, Kent,
0:39:36 > 0:39:40'where this commercial property was bought for 160,000
0:39:40 > 0:39:42'by estate agent Spencer.
0:39:42 > 0:39:46'The property had been a health spa.
0:39:48 > 0:39:54'Spencer planned to relocate his estate agency to the ground and first floors,
0:39:54 > 0:39:59'converting the rest of the building into a two-bedroom flat.
0:39:59 > 0:40:02'18 months later, we've come back.
0:40:02 > 0:40:06'I know there's been a property slump, but the estate agent's window
0:40:06 > 0:40:09'hasn't got any houses in it!
0:40:13 > 0:40:16'The offices of the former health spa
0:40:16 > 0:40:20'look more like a builder's supply shop than an estate agency.
0:40:20 > 0:40:25'On the first floor, the sauna, showers and cubicles have gone,
0:40:25 > 0:40:28'and one large, light open space has been created.
0:40:28 > 0:40:33'Right at the top, the attic room has been scrubbed clean
0:40:33 > 0:40:35'and refurbished.
0:40:38 > 0:40:43'It all looks great, but what happened to Spencer's plans?
0:40:43 > 0:40:47'Didn't he want to create a two-bedroom flat
0:40:47 > 0:40:49'above the estate agent's?'
0:40:49 > 0:40:55Originally, we felt the size of the property warranted two bedrooms.
0:40:55 > 0:40:58That idea wasn't looked upon favourably.
0:40:58 > 0:41:03It's become a one-bedroom property which I'm really happy with.
0:41:03 > 0:41:06The layout works really well.
0:41:06 > 0:41:08'The floor above the shop
0:41:08 > 0:41:12'is going to be an office for the estate agent's.
0:41:12 > 0:41:14'The flat, accessed from the rear,
0:41:14 > 0:41:17'occupies the two top floors above.'
0:41:17 > 0:41:20This is the first floor of the flat.
0:41:20 > 0:41:23The bathroom and the stairs up to the bedroom.
0:41:23 > 0:41:29This is the main living room. We've still got the floor covering to do.
0:41:29 > 0:41:34In the kitchen, there's going to be laminate flooring and some tiles.
0:41:34 > 0:41:37It's turned out really well.
0:41:37 > 0:41:42It's much bigger than I'd hoped and it's really light.
0:41:42 > 0:41:47'Replacing the original metal windows wasn't straightforward
0:41:47 > 0:41:50'because of the conservation area.
0:41:50 > 0:41:55'This meant using modern Crittall versions with double glazing.
0:41:55 > 0:42:00'It wasn't just the noise from the traffic Spencer tried to keep out.'
0:42:00 > 0:42:05Because of the location fairly close to a main road and busy junction,
0:42:05 > 0:42:09it falls in an "air quality management area".
0:42:09 > 0:42:14We've had to adhere to guidelines to ensure the tenants are safe
0:42:14 > 0:42:17in the air they're breathing.
0:42:17 > 0:42:21That's involved installing a specialist air extraction machine.
0:42:21 > 0:42:24It's something for developers to look out for.
0:42:24 > 0:42:29I've been in the business for 15 years, I was unaware of it.
0:42:29 > 0:42:33# All I need is the air that I breathe... #
0:42:33 > 0:42:36'And the issues didn't stop there.
0:42:36 > 0:42:41'Spencer's using the shop for his estate agency and an office.
0:42:41 > 0:42:45'That meant meeting strict regulations
0:42:45 > 0:42:50'to deaden sound and heat transfer between the business and the flat.'
0:42:50 > 0:42:52This is the ground floor.
0:42:52 > 0:42:56We're going to have a reception area here,
0:42:56 > 0:42:58with funky contemporary furniture.
0:42:58 > 0:43:01It's going to be a nice environment.
0:43:01 > 0:43:04Often, people are daunted about coming in.
0:43:04 > 0:43:08We're going to make this as welcoming as possible.
0:43:08 > 0:43:11'It's 18 months since we saw the property.
0:43:11 > 0:43:14'Spencer paid 160,000 for the building.
0:43:14 > 0:43:19'With planning delays, air quality issues and the soundproofing,
0:43:19 > 0:43:22'has he managed to keep to his budget?'
0:43:22 > 0:43:25I originally said 30 to 35 for the budget.
0:43:25 > 0:43:28We're currently at the early 50s.
0:43:28 > 0:43:33The reason, in main, due to the cost of the extra windows,
0:43:33 > 0:43:37the air extraction system and sound deadening.
0:43:37 > 0:43:40I'm actually really glad, in the end,
0:43:40 > 0:43:44that we didn't divide it up as a studio.
0:43:44 > 0:43:48I don't think there'll be any problem reselling it.
0:43:48 > 0:43:53'Spencer's one local estate agent. Time to see what two others make
0:43:53 > 0:43:56'of his office and one-bed flat.'
0:43:56 > 0:44:02They've got a very good shop front. That will look really professional.
0:44:02 > 0:44:07Prime location for commercial business. It's a very busy road.
0:44:07 > 0:44:11Not many flats round here are on different levels,
0:44:11 > 0:44:16so maybe a bit of an advantage, something different.
0:44:16 > 0:44:22'Different indeed, and I'm sure it would get a lot of interest being so close to the town centre.
0:44:22 > 0:44:27'How much could this property expect to achieve on the rental market?'
0:44:27 > 0:44:34Rental for the one-bedroom flat would be £550 to £575 per calendar month.
0:44:34 > 0:44:40I would think we'd be looking round about £650 per calendar month.
0:44:40 > 0:44:45The agent that said 650 is pretty much on the money.
0:44:45 > 0:44:47The other agent is way out.
0:44:47 > 0:44:51'The flat isn't finished, so maybe that's why there's a disparity
0:44:51 > 0:44:55'between what the estate agents and Spencer think.
0:44:55 > 0:44:59'Remember, Spencer is an estate agent, too.
0:44:59 > 0:45:04'What's the value of the whole property, the commercial space and the flat?
0:45:04 > 0:45:09'Spencer paid £160,000 for the building and, so far,
0:45:09 > 0:45:13'he's spent just over £50,000 doing it up.'
0:45:13 > 0:45:18In today's market, I would estimate it at £250,000.
0:45:18 > 0:45:22In this current market, to sell the whole building as it stood,
0:45:22 > 0:45:28I'd be looking at somewhere around about £250,000 to £275,000.
0:45:28 > 0:45:33'Potentially, around £40,000 to £65,000 gross profit,
0:45:33 > 0:45:36'minus the usual expenses.
0:45:36 > 0:45:39'How does that sound?'
0:45:39 > 0:45:41I'm quite happy with the valuation.
0:45:41 > 0:45:45It's a little bit less than I'd expect for it as a whole.
0:45:45 > 0:45:50Yeah, it's more or less in keeping with where I see it.
0:45:50 > 0:45:54'The refurbishment's taking longer than anticipated,
0:45:54 > 0:45:57'but what a transformation!
0:45:57 > 0:46:01'Has he got any tips for anyone planning a similar refurbishment?'
0:46:01 > 0:46:07The best advice I could give to developers is do your homework,
0:46:07 > 0:46:09do your homework, do your homework.
0:46:09 > 0:46:13There's stuff that I've encountered that I had never encountered.
0:46:13 > 0:46:15You can never research too much.
0:46:15 > 0:46:19'Good advice for any would-be developers,
0:46:19 > 0:46:22'buying under the hammer or not.'
0:46:24 > 0:46:29'Earlier in the programme, we showed you how, back in 2007,
0:46:29 > 0:46:35'Eric bought this former chapel in Nottinghamshire for 120,000.
0:46:35 > 0:46:39'He hoped to convert it into a luxury home.
0:46:39 > 0:46:41'Eight months later,
0:46:41 > 0:46:43'not much had changed.
0:46:43 > 0:46:48'Where the worshippers once prayed, they'd just moved a ladder!
0:46:49 > 0:46:51'No matter how hard we looked,
0:46:51 > 0:46:56'we couldn't see any difference in the back room...
0:46:56 > 0:46:59'or the tiny kitchen area.'
0:46:59 > 0:47:03# ..You saw me crying in the chapel... #
0:47:03 > 0:47:06'Just what had Eric achieved?'
0:47:06 > 0:47:09Very little since you were here.
0:47:09 > 0:47:12We've had meetings with planners.
0:47:12 > 0:47:14We've worked with the architect,
0:47:14 > 0:47:19trying to get drawings they'll agree to - they haven't agreed to any.
0:47:19 > 0:47:22We're on our third or fourth set.
0:47:22 > 0:47:29'Eric's initial idea was to add an extension and convert the chapel into a four-bedroom house.
0:47:29 > 0:47:34'Two of the beams would be removed and a mezzanine floor added.
0:47:34 > 0:47:36'That was rejected by the planners.
0:47:36 > 0:47:38'It's not in a conservation area,
0:47:38 > 0:47:44'but a conservation officer insisted that all four beams be retained.
0:47:44 > 0:47:48'It's resulted in changes to Eric's plans.
0:47:48 > 0:47:50'He hopes he's found a solution.'
0:47:50 > 0:47:54This is the fourth layout that we have for the chapel.
0:47:54 > 0:47:59This is the one that we're proposing to submit to the planners.
0:47:59 > 0:48:02We've got the porch on the front.
0:48:02 > 0:48:04That is the only new piece.
0:48:04 > 0:48:07We're going to retain the beams,
0:48:07 > 0:48:11those two, at the front, above the lounge.
0:48:11 > 0:48:17There will be three bedrooms and a bathroom on the first floor.
0:48:17 > 0:48:21On the ground floor, a lounge, dining room, kitchen.
0:48:21 > 0:48:25If they aren't acceptable, we shall go to appeal.
0:48:25 > 0:48:29'Eric was confident that he would get planning permission.
0:48:29 > 0:48:34'The council agreed that it could be converted into a dwelling.
0:48:34 > 0:48:37'The issue was the size of the conversion
0:48:37 > 0:48:40'and the retention of those beams.
0:48:40 > 0:48:43'18 months later and the waiting's paid off.
0:48:43 > 0:48:50'Eric's revised plans were passed and the former chapel is now
0:48:50 > 0:48:55'a beautiful three-bedroom home.
0:48:55 > 0:48:57'On a cold day like this,
0:48:57 > 0:49:00'that new porch is a godsend.
0:49:05 > 0:49:09'Inside, the room where the worshippers once prayed
0:49:09 > 0:49:11'has been divided into two.
0:49:11 > 0:49:15'It's produced a large living room at the front.
0:49:15 > 0:49:19'The rear is now a kitchen finished, appropriately for today,
0:49:19 > 0:49:21'in Arctic white.
0:49:21 > 0:49:27'The large meeting hall at the back has, again, been divided into two.
0:49:31 > 0:49:35'And a lovely bathroom's been installed.
0:49:35 > 0:49:37'The planners eventually agreed
0:49:37 > 0:49:41'that Eric could remove some of the beams,
0:49:41 > 0:49:46'allowing three bedrooms and a bathroom to be built upstairs.
0:49:46 > 0:49:48'How long did it all take?'
0:49:48 > 0:49:53We had to wait possibly a year before we got the final planning.
0:49:53 > 0:49:58We had a meeting with the planners and the conservation officer.
0:49:58 > 0:50:03They gave us their views and, eventually, through my architect,
0:50:03 > 0:50:09we managed to come to a compromise and finished up with a three-bedroom property.
0:50:09 > 0:50:14'It took four sets of drawings, but Eric's perseverance paid off.
0:50:14 > 0:50:17'The former chapel's now been rewired.
0:50:17 > 0:50:20'There's a new roof
0:50:20 > 0:50:25'and wooden windows matching the style of the original building.
0:50:25 > 0:50:29'Upstairs, three bedrooms and a second bathroom have been built.
0:50:29 > 0:50:33'There had been an issue with head height, but Eric found a solution.'
0:50:33 > 0:50:36This was the room where it started.
0:50:36 > 0:50:39When we constructed the two walls at the end,
0:50:39 > 0:50:45we decided to build two RSJs in and put the Velux rooflights in.
0:50:45 > 0:50:51So, with the Velux rooflights needing to take off the slates,
0:50:51 > 0:50:56we decided to re-roof the whole place, then put the Velux in.
0:50:56 > 0:50:59It suddenly struck us that we could make this a nice room
0:50:59 > 0:51:05by raising the ceiling, which was only just above head height.
0:51:05 > 0:51:09We gained probably about 600mm by removing the ceiling joists
0:51:09 > 0:51:11and putting them higher.
0:51:11 > 0:51:14As you see, it's made a lovely room.
0:51:14 > 0:51:17'The property's beautifully finished.
0:51:17 > 0:51:19'Attention to detail is obvious.
0:51:19 > 0:51:25'How much has it cost on top of that £120,000 that Eric paid
0:51:25 > 0:51:27'on auction day?'
0:51:28 > 0:51:30I hoped, originally,
0:51:30 > 0:51:34that I could get all the work carried out for 120 to 130.
0:51:34 > 0:51:38I think it's cost me nearer 150.
0:51:38 > 0:51:42But that is a cost figure, without any finance
0:51:42 > 0:51:45and the cost of the finance.
0:51:47 > 0:51:53'Once planning had been obtained, it took ten months to complete.
0:51:53 > 0:51:55'Eric seems happy with the result.'
0:51:55 > 0:52:01It's turned out much better than what I anticipated.
0:52:01 > 0:52:03I knew I could make it nice.
0:52:03 > 0:52:08Through one or two things that we've done, it's made it really nice.
0:52:08 > 0:52:12'The building's been used for vehicle repair
0:52:12 > 0:52:14'and as a signwriter's studio.
0:52:14 > 0:52:19'Eric's made sure its origins as a chapel are still visible.'
0:52:19 > 0:52:24When we came, you couldn't actually see the writing on them.
0:52:24 > 0:52:28On the top it was, not emulsion, it was distemper.
0:52:28 > 0:52:30We carefully scraped it off
0:52:30 > 0:52:35and all the words came out with the gold lettering.
0:52:35 > 0:52:37We thought we could save that.
0:52:37 > 0:52:42So it was all cleaned with warm water and then we varnished them.
0:52:42 > 0:52:45And you see the result.
0:52:45 > 0:52:50'Who's been involved in the restoration of the former chapel?'
0:52:51 > 0:52:56Most of the workmen are a similar age to me -
0:52:56 > 0:52:58all close to retirement.
0:52:58 > 0:53:02They've worked for me for 15 or 20 years, most of them,
0:53:02 > 0:53:05and so we work together as a team.
0:53:05 > 0:53:10Everyone has their views and we look at everybody's ideas.
0:53:10 > 0:53:16That enables us, with all the experience, to come up with the goods.
0:53:16 > 0:53:21'Eric's friend Barbara has been responsible for the interior design.
0:53:21 > 0:53:26'Now it's finished, is Eric tempted to move in and make it home?'
0:53:26 > 0:53:32I could possibly live in it, but it's not what my wife would like.
0:53:32 > 0:53:34She likes the property,
0:53:34 > 0:53:42but with having no garden, it's not everybody's cup of tea.
0:53:42 > 0:53:45'On a cold day, any warm drink would be nice.
0:53:47 > 0:53:50'Time to discover what two local estate agents think
0:53:50 > 0:53:52'of the renovation.
0:53:52 > 0:53:57'Eric wants to sell, so how much could it be worth?'
0:53:57 > 0:53:59When I came through that door,
0:53:59 > 0:54:03I couldn't believe what he's done to it.
0:54:03 > 0:54:05I really like it.
0:54:05 > 0:54:10It's a good design. It's been well executed. I saw it before.
0:54:10 > 0:54:14It was obviously in quite a state back then.
0:54:14 > 0:54:16The overall finish is fantastic.
0:54:16 > 0:54:19People like the open plan.
0:54:19 > 0:54:22You've got the lounge and the kitchen.
0:54:22 > 0:54:25You've got a dining room, a study,
0:54:25 > 0:54:28three bedrooms and a bathroom upstairs.
0:54:28 > 0:54:33I'm really into these chapel conversions and this is a good one.
0:54:33 > 0:54:37It does have its drawbacks, such as the tight plot it sits on.
0:54:37 > 0:54:39It lacks a garden.
0:54:39 > 0:54:44Things are changing and people don't want so much garden,
0:54:44 > 0:54:48but depending on what price we put on it, that could be a factor.
0:54:48 > 0:54:54'A lot of busy professionals don't want the hassle of a garden
0:54:54 > 0:54:58'so it could prove a plus if Eric fancied renting.'
0:54:58 > 0:55:02To rent, £700 per calendar month.
0:55:02 > 0:55:06I would put this on the rental market at £750 per calendar month.
0:55:06 > 0:55:10Yeah, I'm not looking to rent it. I want to sell it if I can.
0:55:10 > 0:55:13'So, how much could the chapel sell for?
0:55:13 > 0:55:16'Eric paid £120,000 on auction day
0:55:16 > 0:55:21'and has spent £150,000 on sorting it out.
0:55:21 > 0:55:25'He'll have to add in legal expenses and finance fees as well.'
0:55:25 > 0:55:29Realistically, you can put this on the market for £270,000.
0:55:29 > 0:55:33I would put it on the market for £265,000.
0:55:33 > 0:55:37'No profit for Eric on those valuations.'
0:55:37 > 0:55:40I feel that's just a bit too low, really.
0:55:40 > 0:55:45I've had another valuation and he valued it at 280.
0:55:45 > 0:55:52So, I think it would be good value for money at 280.
0:55:52 > 0:55:57'Eric's achieved an impressive result with this former chapel.
0:55:57 > 0:56:02'He's created a fabulous new house next door to where he was born.
0:56:02 > 0:56:04'He must be very pleased.'
0:56:06 > 0:56:09I think we've more or less got what we want.
0:56:09 > 0:56:13We wanted to make it still look like a chapel,
0:56:13 > 0:56:18but be nice and comfortable for somebody to live in.
0:56:18 > 0:56:23It's made the village look better. It's stood empty for so long.
0:56:23 > 0:56:26It's got to be used for something
0:56:26 > 0:56:30and I think it's turned out to be a really nice property.
0:56:37 > 0:56:41We hope you've enjoyed today's tales from the auction room.
0:56:41 > 0:56:44Join us next time for more Homes Under The Hammer.
0:56:44 > 0:56:46- See you then.- Goodbye.
0:57:06 > 0:57:09Subtitles by Red Bee Media Ltd