0:00:02 > 0:00:03In today's challenging market,
0:00:03 > 0:00:05do you think you could hack it in the world of property?
0:00:05 > 0:00:09If you get it right, it can be an exciting way to earn money.
0:00:09 > 0:00:11But if you get it wrong, well, who knows?
0:00:11 > 0:00:16One thing to stack things in your favour, though, is to buy your next property under the hammer.
0:00:41 > 0:00:43There are tense moments in the auction room.
0:00:43 > 0:00:46Who will make the first bid at the right time?
0:00:46 > 0:00:50Properties can change people's fortunes for better or worse.
0:00:50 > 0:00:54So, what inspired people on today's show?
0:00:54 > 0:00:59Don't be put off by the time and money this property in Plymouth will need. It could be worth it.
0:00:59 > 0:01:04I'm already seeing a big restoration job, but I'm also seeing a big house.
0:01:04 > 0:01:09If you fancy trying your hand at an auction, this London house might not have a lot of character, but...
0:01:09 > 0:01:14The thing for me that still gets me going about this place, is the location.
0:01:14 > 0:01:22And this Staffordshire semi might look a bit of a joke, but it's brought a smile to my face.
0:01:22 > 0:01:24Ha ha ha! Look at that! Fantastic.
0:01:26 > 0:01:29All these properties were bought at auction and we find out
0:01:29 > 0:01:33who bought them and what they paid when they went under the hammer.
0:01:37 > 0:01:42With mentions as far back as the Domesday Book, it's perhaps not surprising that
0:01:42 > 0:01:47Plymouth is an eclectic mix of old, new and even slightly bizarre styles of architecture.
0:01:47 > 0:01:51And the Mutley area of the city is a case in point.
0:01:51 > 0:01:54You never know what's behind the front doors here.
0:01:54 > 0:01:57A very intriguing property on the cards, I have to say.
0:01:57 > 0:02:00It's this house here that was up for auction.
0:02:00 > 0:02:06It's got letting rooms downstairs and a separate flat upstairs.
0:02:06 > 0:02:08Sounds like it has potential.
0:02:08 > 0:02:12Or would it just be too much of a jigsaw to try and put together?
0:02:12 > 0:02:16It seems reasonable value at a guide price of £125,000.
0:02:16 > 0:02:22But this house on a corner plot will definitely need a new roof.
0:02:22 > 0:02:25On the plus side, this is a popular student area.
0:02:25 > 0:02:29So, with a two-bed flat and other rentable rooms downstairs,
0:02:29 > 0:02:34I think this has rental potential written all over it.
0:02:34 > 0:02:36So, what's to behold across the threshold?
0:02:38 > 0:02:41Well, that's a bit damp, straight away, on the ceiling there.
0:02:41 > 0:02:44You don't normally see it in a porch entrance like that.
0:02:44 > 0:02:48But straight in to the main part of the property, and as I said,
0:02:48 > 0:02:52it's a kind of mish-mash, things going everywhere, kind of property straight away.
0:02:52 > 0:02:55One room there, another room there, another room going off back there.
0:02:55 > 0:03:00There's a loo. And actually, I don't think...
0:03:00 > 0:03:02they're in that nice a condition.
0:03:02 > 0:03:04I mean, look at this.
0:03:04 > 0:03:07It's hard to imagine the last time this was used.
0:03:07 > 0:03:09But if it is recently, that's not good.
0:03:09 > 0:03:13It all needs to be stripped back and sorted out.
0:03:13 > 0:03:17If you can see through the mess, it's actually quite a good-sized room.
0:03:17 > 0:03:20But things like the ceiling, that's going to have to come down.
0:03:20 > 0:03:23I imagine this whole thing has got damp in it.
0:03:23 > 0:03:27I'm already seeing a big restoration job, but I'm also seeing a big house.
0:03:30 > 0:03:35Despite the rather dilapidated state, there are some great character features.
0:03:35 > 0:03:39Along with the two well proportioned bay-fronted rooms on this floor,
0:03:39 > 0:03:46there's a rather oddly shaped bedroom, a pretty grotty bathroom,
0:03:46 > 0:03:49and a basement kitchen, which is simply dire.
0:03:49 > 0:03:54So, this downstairs area not only needs a lot of work to get it back in order,
0:03:54 > 0:03:57but I think the layout also needs a complete rethink.
0:03:57 > 0:04:03But before I consider possible changes down here, let's have a look at the flat upstairs.
0:04:03 > 0:04:08Well, up here is a self-contained flat, and pretty spacious it is too.
0:04:08 > 0:04:11What have we got? Bathroom, kitchen there.
0:04:11 > 0:04:16Two bedrooms and a living room. And obviously, you've got this strange shape to the rooms,
0:04:16 > 0:04:19partly because the house is actually on a corner.
0:04:19 > 0:04:21But it's a big flat up here, it really is.
0:04:21 > 0:04:24But you know what? I think to maximise the rental potential
0:04:24 > 0:04:28of this place, I would want to see this converted into individual rooms.
0:04:28 > 0:04:31A lot of them have already got their own locks on, anyway.
0:04:31 > 0:04:35Not a lot of work to do that, however, once it becomes a house of multiple occupation, you do
0:04:35 > 0:04:41have things like fire regulations, fire alarms, soundproofing, and all sorts of other things to consider.
0:04:41 > 0:04:44So there's money involved to get it sorted out.
0:04:44 > 0:04:48But once you've done that, it turns itself into a money-making machine.
0:04:58 > 0:05:01So, with two bedrooms, a lounge, kitchen and bathroom,
0:05:01 > 0:05:05you could just bring this flat up to current regulations and rent it out.
0:05:10 > 0:05:14But as the rooms downstairs need work, and the layout to be rejigged,
0:05:14 > 0:05:19I think turning this back into a single property, albeit with lots of individual rooms,
0:05:19 > 0:05:20could be your best option.
0:05:20 > 0:05:25With a little thought, you could get six, maybe seven, rentable rooms here.
0:05:25 > 0:05:29Then it really could be a substantial money-making machine.
0:05:30 > 0:05:32Alternatively, of course,
0:05:32 > 0:05:36you could convert it into two two-bedroomed flats.
0:05:36 > 0:05:40What does a local property expert think?
0:05:44 > 0:05:47This properties is a classic auction property.
0:05:47 > 0:05:50It's screaming out for possibly conversion into two flats.
0:05:50 > 0:05:53Or is it going to be someone buying it as an investment
0:05:53 > 0:05:56and letting it out room by room? So, I love this property.
0:05:56 > 0:05:59The great attraction here is the options available.
0:05:59 > 0:06:03But what makes most sense from a financial point of view?
0:06:05 > 0:06:08If the property is renovated to become a family home, you could expect to put
0:06:08 > 0:06:13it on the market for somewhere between £180,000 and £190,000.
0:06:13 > 0:06:17If the property was converted into two, possibly two-bedroom apartments,
0:06:17 > 0:06:22they could fetch each in the region of £110,000 to £115,000.
0:06:22 > 0:06:28Two apartments may increase the sale value of the property slightly, but what about its rental potential?
0:06:31 > 0:06:33If the property was converted into two flats,
0:06:33 > 0:06:37they probably would rent out about £550 per calendar month each.
0:06:37 > 0:06:40If the end user decides to create a multi-room let,
0:06:40 > 0:06:46possibly seven letting rooms here, you could expect to achieve probably £80 to £90 per week, per room.
0:06:46 > 0:06:51Seven rooms could bring in over £2,500 a month -
0:06:51 > 0:06:55over double what two flats would achieve.
0:06:57 > 0:07:03Well, you don't need to be a student to realise that this has a degree of potential.
0:07:03 > 0:07:07I think the key is to convert all the rooms back into individual letting rooms
0:07:07 > 0:07:10and rent them out to the droves of students that are around here.
0:07:10 > 0:07:14Now, there's lots of work to do that, but I think it would be worth it.
0:07:14 > 0:07:17Let's find out who went for it at the auction.
0:07:19 > 0:07:2473 is three ground-floor letting rooms
0:07:24 > 0:07:28and a self-contained, two-bedroom flat on the top floor.
0:07:28 > 0:07:31£115 is where I'll kick off.
0:07:31 > 0:07:37Getting the message at 115? Thank you. 115. 115. 115.
0:07:37 > 0:07:40If you're happy, 115. 116. 118. 122.
0:07:40 > 0:07:44124. 126.
0:07:44 > 0:07:47128. 130.
0:07:47 > 0:07:50131, OK. 131.
0:07:50 > 0:07:52And two.
0:07:52 > 0:07:55At 132. 33?
0:07:55 > 0:07:5834. 35.
0:07:58 > 0:08:0236. At 36.
0:08:02 > 0:08:0436 and a half. 137.
0:08:04 > 0:08:07137. 137. And a half.
0:08:07 > 0:08:11138.
0:08:11 > 0:08:14138 and a half. 139.
0:08:14 > 0:08:16And a half.
0:08:16 > 0:08:18140.
0:08:18 > 0:08:20140 and a half.
0:08:20 > 0:08:22At 140 and a half.
0:08:22 > 0:08:25140 and a half once. Are you in?
0:08:25 > 0:08:30140 and a half twice, here it is at 140 and a half. And going.
0:08:34 > 0:08:40Dan made the successful bid of £140,500.
0:08:40 > 0:08:44Dan's one half of a developing duo, and, along with his business partner
0:08:44 > 0:08:47Mark, he met me at their Plymouth property.
0:08:52 > 0:08:55Mark, Dan, congratulations. Good to meet you both.
0:08:55 > 0:08:57Why did you want to buy the house?
0:08:57 > 0:09:00- We wanted to enter student accommodation.- Right.
0:09:00 > 0:09:05Now, at the moment, obviously, we've got individual rooms downstairs and a flat upstairs here.
0:09:05 > 0:09:11What are you going to do to convert it into what you think will maximise its potential?
0:09:12 > 0:09:15Strip it out, basically, get as many rooms as we can into it.
0:09:15 > 0:09:17We're trying for seven, Dan?
0:09:17 > 0:09:22- I think seven.- Seven. Basically. And just take it from there, really.
0:09:22 > 0:09:26So, seven bedrooms. And any sort of communal areas?
0:09:26 > 0:09:30Yeah, we're looking to put a communal area at the back.
0:09:30 > 0:09:35It'll be a kitchen-cum-lounge, and we'll take out the back of the building
0:09:35 > 0:09:40and make an extension of about three metres going out at the back.
0:09:40 > 0:09:46They can extend by three metres without needing planning permission, which would delay them.
0:09:46 > 0:09:52That speed is vital as they hope to have it ready in just two months, in time for the next student intake.
0:09:52 > 0:09:55They've given themselves a budget of 50,000 to make this a magnificent,
0:09:55 > 0:10:00seven-bedroom house, fit for the most discerning student.
0:10:00 > 0:10:03What are students looking for these days, from your experience?
0:10:03 > 0:10:06- High quality.- En suites etc.
0:10:06 > 0:10:08- En suites?- Yeah, it's a big thing.
0:10:08 > 0:10:12- Really?- Yeah.- I don't remember having an en suite when I was a student.
0:10:12 > 0:10:17- Times have moved on.- It's almost hotel accommodation for students.
0:10:17 > 0:10:20Crikey. I almost wish I was a student again.
0:10:20 > 0:10:25Accommodation has certainly gone up a notch since my day, but then again so have the rents.
0:10:25 > 0:10:31Dan and Mark aim for around £350 to £400 per month per room.
0:10:31 > 0:10:34So how does it work between you? What's the partnership here?
0:10:34 > 0:10:39I basically will be doing the majority of the building work. Dan does the administration side.
0:10:39 > 0:10:41Loads of running around involved, loads.
0:10:41 > 0:10:44So, yeah, it works well, really.
0:10:44 > 0:10:46Have we seen you before the show?
0:10:46 > 0:10:50- Yes, a couple of times before. - As what? In what guise? Have you bought, or...?
0:10:50 > 0:10:54I've done some work for developers in the past, seeing what they made of it, basically,
0:10:54 > 0:10:56I thought it was time to do it for myself.
0:10:56 > 0:10:58Time to move on.
0:10:58 > 0:11:01- So I have, and that's it, really. - And how does that feel?
0:11:01 > 0:11:04Great, great. It's better doing it for yourself, definitely.
0:11:04 > 0:11:06Got no customers to deal with, have you?
0:11:06 > 0:11:09The job is good, it's the customers that are the problem.
0:11:09 > 0:11:12Steady.
0:11:12 > 0:11:18- What's your experience before you did this?- I've been in the property game for the last 15 years.
0:11:18 > 0:11:20What prompted you to enter this world?
0:11:20 > 0:11:24- I was skiing for a week...- Skiing?
0:11:24 > 0:11:29Yeah, skiing for a week, and a friend was skiing for six months,
0:11:29 > 0:11:33or the season, and I thought, "What do you do?"
0:11:33 > 0:11:37He basically let out property and he lived off that income.
0:11:37 > 0:11:39So I thought, "I'd like some of that."
0:11:41 > 0:11:46So Dan is hoping this property can generate enough revenue to allow him to live the high life.
0:11:46 > 0:11:50But first they've got a mountain of work to organise and do
0:11:50 > 0:11:54before either of them can enjoy any rest and relaxation.
0:11:58 > 0:12:04Well, Mark and Dan are doing exactly the right thing to maximise the financial potential of this place.
0:12:04 > 0:12:09But it all rests, certainly for the first year, on getting those students in in the new year,
0:12:09 > 0:12:12and that's a bit of a risk, as is keeping to budgets and timescales.
0:12:12 > 0:12:14So how are they going to get on?
0:12:14 > 0:12:16You can find out later on the show.
0:12:19 > 0:12:22This is the Regent's Canal.
0:12:22 > 0:12:26Head that way and you end up in Islington and the start of the canal at Little Venice.
0:12:26 > 0:12:31Head this way and you get to Limehouse and the London Docklands.
0:12:31 > 0:12:34This really is a quiet oasis right in the heart of London.
0:12:34 > 0:12:40I'm here to see a property situated right next to this lovely canal just over there.
0:12:40 > 0:12:43It's a three-bedroom, semi-detached property.
0:12:43 > 0:12:46One drawback is that you have to get here on foot.
0:12:46 > 0:12:48There's no vehicle access.
0:12:48 > 0:12:52I can't wait to get inside and have a good old nose around.
0:12:52 > 0:12:58You have to cross the canal footbridge and go on to the towpath before you reach the cottage.
0:12:58 > 0:13:01The access across the front yard is shared with the adjoining cottage.
0:13:01 > 0:13:07This property in London's Bow area went to auction guided at £300,000.
0:13:07 > 0:13:10It looks well worth the walk to get to it.
0:13:18 > 0:13:23Now, once I'm inside, straightaway you can see it's been magnolia'd.
0:13:23 > 0:13:25It's all the same colour throughout.
0:13:25 > 0:13:27Lots of woodchip wallpaper.
0:13:27 > 0:13:30This, come here, is what really concerns me.
0:13:30 > 0:13:32You've got a gas pipe sticking out here.
0:13:32 > 0:13:34Could be quite dangerous. I think I'd box that in.
0:13:34 > 0:13:39Then you could risk falling over it once coming down the stairs, so that's a bit of an issue.
0:13:39 > 0:13:41I'd try to get that sorted out.
0:13:41 > 0:13:45Really nice-sized reception room through there, again painted magnolia.
0:13:45 > 0:13:49We've got the kitchen through there. Quite small, but tidy.
0:13:49 > 0:13:52And in here, a second reception room towards the back of the property.
0:13:52 > 0:13:58You've got a few little cupboards here and there, a feature fireplace, not to everybody's taste.
0:13:58 > 0:14:01But it's not terribly exciting inside,
0:14:01 > 0:14:04not packed with lots of lovely features.
0:14:04 > 0:14:10The thing for me that still gets me going about this place is the location.
0:14:10 > 0:14:13Upstairs there are three bedrooms, two doubles and a single.
0:14:13 > 0:14:15This could make a great family home.
0:14:15 > 0:14:21And who wouldn't be delighted to be so close to the beautiful Victoria Park?
0:14:24 > 0:14:28This property already has double-glazed windows.
0:14:28 > 0:14:32But if you did want to change them or alter the exterior in any way,
0:14:32 > 0:14:35you must be warned because this is in a conservation area.
0:14:35 > 0:14:39Even simple things like putting up a satellite dish or painting your
0:14:39 > 0:14:42front door a different colour could all be restricted.
0:14:42 > 0:14:48You have to run any changes by the local conservation officer first.
0:14:48 > 0:14:52At the back there's an even more exciting prospect for development.
0:14:54 > 0:14:58Here's the garden, or back yard, you might like to call it.
0:14:58 > 0:15:01But what I love is that over this fence is Victoria Park.
0:15:01 > 0:15:06But look at what's over this fence - a nice big piece of land, and as a
0:15:06 > 0:15:09developer, I'm more excited about that than the house, to be honest.
0:15:09 > 0:15:12Get your hands on it, build another property, or at the
0:15:12 > 0:15:17very least create some off-street parking or even a bigger garden.
0:15:17 > 0:15:22But before we get excited, that belongs to British Waterways,
0:15:22 > 0:15:27and as far as I can find out there are no plans to sell it any time soon.
0:15:27 > 0:15:29Still, one can live in hope.
0:15:29 > 0:15:32You never know what might happen in the future.
0:15:37 > 0:15:41And who knows, maybe if you pleaded long enough they might just sell it to you.
0:15:41 > 0:15:44But even if not, this property has still got
0:15:44 > 0:15:49tremendous development potential as it's in a very desirable area.
0:15:49 > 0:15:51What does the local estate agent make of it?
0:15:51 > 0:15:54I asked one along to tell me more.
0:15:57 > 0:16:00It obviously needs some refurbishment works
0:16:00 > 0:16:03in order for it to appeal to a family,
0:16:03 > 0:16:04but I believe it's a good location,
0:16:04 > 0:16:07but parking may be an issue for certain buyers.
0:16:07 > 0:16:10I'd say the property needs a complete refurbishment.
0:16:10 > 0:16:13I'd say it needs rewiring, new kitchen, a new bathroom,
0:16:13 > 0:16:16maybe an extension to give that larger kitchen diner effect
0:16:16 > 0:16:18which is appealing in today's market.
0:16:20 > 0:16:22The good news is that there's an allowance for a three metre
0:16:22 > 0:16:26extension to the property with no need for planning permission.
0:16:26 > 0:16:30So how much should the new owners spend here, and how much could they make?
0:16:34 > 0:16:37In order to maximise the potential from the property,
0:16:37 > 0:16:44I think if you spent 75,000 and did a really superb job, you could well see 500,000 here.
0:16:44 > 0:16:50So if bought for close to the guide price of £300,000, spending 75 grand
0:16:50 > 0:16:53on a renovation could still result in a very healthy profit.
0:16:53 > 0:16:56In this area, there's demand for rental property.
0:16:56 > 0:17:00This particular property may put people off due to parking.
0:17:00 > 0:17:04However, per calendar month I'd guess-timate between £1,500 and £1,800.
0:17:06 > 0:17:10Now, the lack of vehicle access may put a few buyers off this property.
0:17:10 > 0:17:17But for most, I think a waterside location like this...well, it would be a dream come true for me.
0:17:17 > 0:17:20This cottage is a real find.
0:17:20 > 0:17:23So who bid for this one? Let's find out at auction.
0:17:23 > 0:17:26Right, Lot 44.
0:17:26 > 0:17:29A great location, canalside position, semi-detached house.
0:17:29 > 0:17:31Start realistic - 250?
0:17:31 > 0:17:33Not going to go below 250.
0:17:33 > 0:17:35Work upwards from there.
0:17:35 > 0:17:37It's worth 250 all day long.
0:17:37 > 0:17:44250. 255. 255. 260, sir.
0:17:44 > 0:17:47265. 270.
0:17:49 > 0:17:51With you, sir. 270. 275.
0:17:51 > 0:17:53280.
0:17:53 > 0:17:56285.
0:17:56 > 0:17:58290.
0:17:58 > 0:18:00295.
0:18:00 > 0:18:02300.
0:18:02 > 0:18:08305. 310.
0:18:08 > 0:18:12315. 320.
0:18:12 > 0:18:17No? Too late. New spot. 320.
0:18:17 > 0:18:20321. 322.
0:18:20 > 0:18:24Not taking, 325, yes?
0:18:24 > 0:18:28330. 331.
0:18:28 > 0:18:32Have a think. Anyone else?
0:18:32 > 0:18:39331. 332. 333. 334. 335.
0:18:39 > 0:18:47336. 337. 338. 339. 340. 341.
0:18:47 > 0:18:50342. 343.
0:18:50 > 0:18:53344. 345.
0:18:53 > 0:18:56346. 347.
0:18:58 > 0:19:00Have a think. 346.
0:19:00 > 0:19:02Back with you. 347?
0:19:02 > 0:19:04If not, 346, first time,
0:19:04 > 0:19:12second time, third and last time, if you're all done, sold. Nice buy.
0:19:12 > 0:19:18That final bid of £346,000 was made by Aytan, originally from Israel.
0:19:18 > 0:19:22Aytan has lived and worked in London for the last 30 years.
0:19:22 > 0:19:23He qualified as an architect,
0:19:23 > 0:19:26pursued a career in fashion photography,
0:19:26 > 0:19:28and is now a documentary film maker.
0:19:28 > 0:19:31He does a bit of property developing on the side.
0:19:31 > 0:19:36I met up with him back at the house to find out his plans for this, his latest investment.
0:19:38 > 0:19:40Aytan, congratulations.
0:19:40 > 0:19:42- Thank you very much. - How exciting for you.
0:19:42 > 0:19:44Thank you, it is.
0:19:44 > 0:19:46Why did you want to buy this?
0:19:46 > 0:19:48The location here was pretty unique.
0:19:48 > 0:19:53I really like the fact that it was by the canal and by the park.
0:19:53 > 0:19:59No neighbours, so it's a house in the middle of a park with no neighbours.
0:19:59 > 0:20:01Remind me like the Queen's setting.
0:20:01 > 0:20:05She doesn't have neighbours, so I thought, "That should be special."
0:20:05 > 0:20:08- So you think you're like the Queen, do you?- No!
0:20:08 > 0:20:12MUSIC: "God Save The Queen"
0:20:12 > 0:20:15Maybe that glorious view of the canal
0:20:15 > 0:20:19has made Aytan miss the fact he does actually have some neighbours.
0:20:19 > 0:20:22I suppose it feels so tranquil here that you'd hardly notice.
0:20:22 > 0:20:28Aytan sounds in love with this house, so is he going to move in himself?
0:20:28 > 0:20:34This is a serious question for me because it's very, very tempting to get hold of this.
0:20:34 > 0:20:36I'm not sure what I'm going to do. I love this place.
0:20:36 > 0:20:39I could see myself living here easily.
0:20:39 > 0:20:43How would it affect my business life and my own money?
0:20:43 > 0:20:48I have a bit of an outside investment in here, a small one, but still, it's something to consider.
0:20:48 > 0:20:52So it's a difficult question. I can't say at this point.
0:20:52 > 0:20:55Do you really see yourself living in a house like this?
0:20:55 > 0:20:57Looking at you, you're a stylish guy.
0:20:57 > 0:20:59You've probably got the artistic eye.
0:20:59 > 0:21:02But this property isn't that stylish inside.
0:21:02 > 0:21:05It's very bland, it's very magnolia and woodchip.
0:21:05 > 0:21:09What would you do to really make this rock?
0:21:09 > 0:21:11Yeah, it's pretty boring inside.
0:21:11 > 0:21:15- It is!- It's going to be a total makeover here.
0:21:16 > 0:21:23In fact Aytan has already had plans drawn up, so I asked him to show me his grand vision.
0:21:23 > 0:21:26We have a plan. This is the ground floor.
0:21:26 > 0:21:29Here we are, this is the front door.
0:21:29 > 0:21:32It's very, very important in every property,
0:21:32 > 0:21:36the moment you open the door, if it's not a wow, forget it.
0:21:36 > 0:21:38What are you going to do to make that a wow?
0:21:38 > 0:21:43To make this a wow, as soon as you open the door you'll see the back of the property.
0:21:43 > 0:21:47You see throughout, across the whole property, then you get a sense of how big it is.
0:21:47 > 0:21:53Then it'll be glass and hopefully will be spring, there will be lots of green leaves, it'll be beautiful.
0:21:53 > 0:21:57So the light, this is northern light coming here, so the light will come from here,
0:21:57 > 0:22:02- this large window will come here and that will light the whole space. - I love it.
0:22:02 > 0:22:05But what I want to know is, you've got sort of three levels here.
0:22:05 > 0:22:08Then you go upstairs, and how many bedrooms have we got upstairs?
0:22:08 > 0:22:13We'll have two bedrooms upstairs, and this is a very crucial issue.
0:22:13 > 0:22:15We're debating what to do with the loft.
0:22:15 > 0:22:19It's very difficult because there's not enough room
0:22:19 > 0:22:25to put another flight of stairs up to the loft without limiting severely one of the bedrooms.
0:22:25 > 0:22:31So this is something we're debating, whether we're going to do a little gallery in every bedroom.
0:22:31 > 0:22:36We open the ceiling and have a little gallery, so it'll be kind of like a library or an office.
0:22:36 > 0:22:40Are you going to be adding on any external building work at all?
0:22:40 > 0:22:45I want to open this wall completely here so we'll be facing the garden.
0:22:45 > 0:22:48It'll be made of glass,
0:22:48 > 0:22:52so the idea that this area here will be a dining area,
0:22:52 > 0:22:55and you can sit in the morning and you have your cup of tea and biscuits
0:22:55 > 0:22:58and you can look into the park with the birds.
0:22:58 > 0:23:00How can you look into the park? You've got a fence there.
0:23:00 > 0:23:06You obviously need to keep that fence there for security, so you can't actually see into the park.
0:23:06 > 0:23:07Knowing it's there, is that what you mean?
0:23:07 > 0:23:13You can look up, you can see the trees, but this fence, I'm thinking of maybe changing it a bit.
0:23:13 > 0:23:19Maybe a kind of a fence that has a blind that you can actually turn it and open, something like this.
0:23:19 > 0:23:21- I'm thinking about this. - I love that idea!
0:23:21 > 0:23:25I'll have to speak to my carpenter. So you can press a button, it opens.
0:23:25 > 0:23:28Oh, you've got such an artistic eye. I knew it when I met you!
0:23:28 > 0:23:31This property's in a conservation area
0:23:31 > 0:23:35so Aytan will have to make sure the work is in keeping with the surroundings
0:23:35 > 0:23:38in order to get planning permission.
0:23:38 > 0:23:41You really are taking this to the absolute max, aren't you?
0:23:41 > 0:23:44That's the idea. Otherwise, what's the point?
0:23:44 > 0:23:50I'm doing it mainly for the passion, mainly for fun, to see the transformation.
0:23:50 > 0:23:53I'm not just doing it to bang it in and get out of the door.
0:23:53 > 0:23:56How long do you think it's going to take you to complete the work here?
0:23:56 > 0:23:58How many months?
0:23:58 > 0:24:00Hmm...
0:24:00 > 0:24:03I'd say at least three months.
0:24:03 > 0:24:06So in three months' time there will be some pretty hefty changes?
0:24:06 > 0:24:09Oh, yeah, this won't be recognisable in three months' time.
0:24:09 > 0:24:12- Really?- Yeah, yeah.- I'm so excited!
0:24:12 > 0:24:16I can't wait to see what he achieves in those three months.
0:24:16 > 0:24:23With a budget of around £100,000, he'll have more than enough to let his creative juices flow.
0:24:23 > 0:24:27I think Aytan has definitely fallen for that canalside cottage,
0:24:27 > 0:24:29and I don't blame him.
0:24:29 > 0:24:33But somehow I can't see him doing that up and then just selling it on.
0:24:33 > 0:24:37He loves it too much. He's certainly got some fantastic plans for it.
0:24:37 > 0:24:42But I think the local conservation officers may have a few issues with the changes he wants.
0:24:42 > 0:24:46So will he be able to make it into his dream home and live here?
0:24:46 > 0:24:50Or will he be tempted to cash in and take the money?
0:24:50 > 0:24:54You can find out exactly what happens later on in the show.
0:24:54 > 0:25:00Coming up, a property in Staffordshire that has been extended, which is good news and bad.
0:25:00 > 0:25:04In terms of space it's quite nice, but I think there may be some inherent problems.
0:25:04 > 0:25:10We return to the canalside cottage. But is the project in deep water?
0:25:10 > 0:25:14I had a 10 to 20% contingency, and I've used it.
0:25:17 > 0:25:20But first it's back to Plymouth where roles are clearly defined.
0:25:20 > 0:25:24He's sort of very hands-on and I'm in the background.
0:25:26 > 0:25:30Earlier we were in Mutley, Plymouth, where two friends, Dan and Mark,
0:25:30 > 0:25:36had bought this dastardly dog of a property for £140,500.
0:25:36 > 0:25:43Their intention was to convert it into a house of multiple occupancy and let the rooms out to students.
0:25:46 > 0:25:49Seven months had passed when we met up again with Dan and Mark
0:25:49 > 0:25:53to see how the refurbishment had progressed.
0:25:53 > 0:25:56Outside, the property has been transformed.
0:25:56 > 0:25:59It's been rendered and painted pastel yellow.
0:25:59 > 0:26:03New windows have been installed, and the roof has been replaced.
0:26:03 > 0:26:05Bearing in mind the condition of the house,
0:26:05 > 0:26:09I suppose it's no surprise that in order to fix the structural problems,
0:26:09 > 0:26:12the inside had to be totally stripped out.
0:26:15 > 0:26:18But now seven bedrooms have been created.
0:26:18 > 0:26:20There are two bedrooms on the ground floor,
0:26:20 > 0:26:24three up on the first floor,
0:26:24 > 0:26:28and a further two up in the loft conversion.
0:26:28 > 0:26:30They all have en suite facilities.
0:26:30 > 0:26:35A communal living area and kitchen have been created for the students at the back
0:26:35 > 0:26:42thanks to the new extension, and as Dan explains, it required a refit from the top down.
0:26:42 > 0:26:46We started this project by ripping everything out of this property.
0:26:46 > 0:26:52The floors were rotten, all the joinery was rotten, the staircase was rotten.
0:26:52 > 0:26:55The roof was rotten, so we took everything out.
0:26:55 > 0:26:59We took the complete roof off. We started on a Friday evening, took the roof off,
0:26:59 > 0:27:04worked all weekend, and by Monday dinner time we had the roof back on.
0:27:04 > 0:27:08We basically worked our way down through the house, ripping everything out.
0:27:08 > 0:27:11The entire property has been completely refurbished,
0:27:11 > 0:27:15with new wiring, windows, plastering and a new boiler.
0:27:17 > 0:27:22As it's a house of multiple occupancy with seven en suite bedrooms,
0:27:22 > 0:27:24the regulations demand two separate cooking facilities.
0:27:24 > 0:27:28So two sinks, two ovens and two fridges were installed,
0:27:28 > 0:27:33although as is the case here, they CAN be in the same area.
0:27:33 > 0:27:39We decided to put an extension on the property to make this room almost double the size.
0:27:39 > 0:27:46We looked into it and we could do it under permitted development, so we cracked ahead and got it built.
0:27:46 > 0:27:53The sun deck is a real bonus for students, a great place to enjoy a drink or revise for exams.
0:27:55 > 0:27:57This is one of the rooms we've converted.
0:27:57 > 0:28:02They were a very awkward shape, but as you can see, we've made it work.
0:28:02 > 0:28:05We've filled in bits and pieces so we can get beds up against walls, etc.
0:28:05 > 0:28:10They've all got en suites, obviously. They're clean, tidy, and it's the ideal size.
0:28:10 > 0:28:15The loft conversion was quite a large job, and it required a lot of steel to be put into the roof
0:28:15 > 0:28:19and all the way down the building to support it independently.
0:28:19 > 0:28:22It was costly.
0:28:22 > 0:28:29So how much has the refurbishment cost on top of the £140,500 they paid at auction?
0:28:29 > 0:28:32We blew the budget because we went up into the roof.
0:28:32 > 0:28:37We spent 50% more, up to about £75,000.
0:28:37 > 0:28:42That's a lot of money, but the facilities on offer for the discerning student are impressive.
0:28:42 > 0:28:46As well as being en suite, every room has internet access,
0:28:46 > 0:28:50and the rent includes all the water, gas, and electricity.
0:28:52 > 0:28:57Me and Mark work very well. He's sort of very hands-on and I'm sort of in the background
0:28:57 > 0:29:01doing the purchasing of properties and that side of things.
0:29:01 > 0:29:05So the hard graft has been down to Mark and the team he assembled.
0:29:05 > 0:29:07Did he enjoy the project?
0:29:07 > 0:29:09I've enjoyed the project immensely.
0:29:09 > 0:29:11We had a good team of chaps here.
0:29:11 > 0:29:14Looking forward to doing the next one, which is in the pipeline.
0:29:14 > 0:29:17So yeah, it's been great.
0:29:17 > 0:29:21The effort's certainly been worth it because they have already managed to let out the rooms.
0:29:21 > 0:29:24Samuel, for one, is delighted with his digs.
0:29:24 > 0:29:29Before I got here from America, I already called the university. They sent me pictures.
0:29:29 > 0:29:32I was like, "Wow, really? This is a student house?"
0:29:32 > 0:29:34I was like, "I'm taking it."
0:29:34 > 0:29:38I think student houses are better nowadays.
0:29:38 > 0:29:40They should keep doing it like that.
0:29:40 > 0:29:43- And the highlight?- The couches.
0:29:43 > 0:29:45The couches are the best.
0:29:48 > 0:29:52Time we did some homework with two local property experts
0:29:52 > 0:29:56to hear their opinions of this seven-bedroom student house.
0:29:56 > 0:30:00Very impressed with the standard of finish of the property,
0:30:00 > 0:30:03and it's fantastic that there's an en suite in every room,
0:30:03 > 0:30:08and there's certainly a demand for students in this area for this level of accommodation.
0:30:08 > 0:30:11I like the self-contained facilities of each individual room,
0:30:11 > 0:30:13so it'll work very well in the rental market.
0:30:13 > 0:30:18The bedrooms are done to a very nice standard. It's fantastic that each room has an en suite.
0:30:18 > 0:30:22Obviously students won't be arguing then over bathrooms in the morning!
0:30:22 > 0:30:25I love the living space at the back of the property.
0:30:25 > 0:30:28They've extended out and incorporated the space that was there before,
0:30:28 > 0:30:32making a very pleasant and liveable area for the students to study.
0:30:32 > 0:30:35How much rent should the students be paying?
0:30:37 > 0:30:40For the area we're in, I'd expect the rooms to rent for students
0:30:40 > 0:30:42at about £85, maybe £90 per calendar week.
0:30:42 > 0:30:46The rooms in the property would achieve approximately £85 per week.
0:30:46 > 0:30:50Well, we're getting £100 per week, including all bills.
0:30:50 > 0:30:52So probably netting about that amount.
0:30:52 > 0:30:57If they successfully let out all seven rooms at £100 a week,
0:30:57 > 0:31:02that's £700 a week, which will produce £2,800 a month.
0:31:02 > 0:31:08Although student lets are normally only for term time, which is about 44 weeks a year,
0:31:08 > 0:31:14Dan and Mark's tenants are on an agreement for 50 weeks, so you can see the potential income here.
0:31:14 > 0:31:16How much is the property worth now?
0:31:16 > 0:31:23Dan and Mark have invested £75,000 on top of the £140,500 they paid at auction,
0:31:23 > 0:31:27so they've spent almost £216,000.
0:31:27 > 0:31:30If the property was placed up for market as it is, as a rent machine,
0:31:30 > 0:31:34it could fetch somewhere in the region of £220,000 to £230,000.
0:31:34 > 0:31:40I'd expect to put this poverty on the market for offers in the region of £225,000.
0:31:40 > 0:31:46£225,000 means a gross profit of around £10,000, before the usual selling expenses.
0:31:46 > 0:31:49But maybe selling isn't the shrewdest move.
0:31:49 > 0:31:51The experts' advice is simple.
0:31:54 > 0:31:58If this was my property and I was achieving maybe £85, maybe £90 per calendar week
0:31:58 > 0:32:01and bringing in the better part of £30,000 per annum,
0:32:01 > 0:32:04I'd certainly leave it as a rent machine and enjoy the income.
0:32:04 > 0:32:06- I think we'll keep hold of it. - Definitely, yeah.
0:32:06 > 0:32:08It's a pension, isn't it, at the end of the day?
0:32:08 > 0:32:10Looking forward to the next one.
0:32:19 > 0:32:23I'm in Staffordshire, on the outskirts of Stoke-on-Trent.
0:32:23 > 0:32:26Actually, this is one of the highest points in the county.
0:32:26 > 0:32:31As you can see, fantastic views, although it's a bit parky.
0:32:35 > 0:32:39I'm in Alsagers Bank, six miles west of Stoke-on-Trent.
0:32:39 > 0:32:45The village enjoys unrivalled views and sunsets over the Cheshire plain to the west.
0:32:49 > 0:32:51And this is the property I'm here to see.
0:32:51 > 0:32:54It's a three-bedroom Victorian house at a guide price of £60,000.
0:32:54 > 0:32:59Let's hope inside it's as spectacular as the views are on the outside.
0:33:05 > 0:33:07I tell you what, that's a nice start.
0:33:07 > 0:33:11Original features there, lovely lead stained glass.
0:33:11 > 0:33:14We like that. Big window, which is going to make the most of those views.
0:33:14 > 0:33:17Needs to be updated, but at least there's an open fire.
0:33:17 > 0:33:21Don't like the fact that it's straight in off the road.
0:33:21 > 0:33:24That's not ideal. But it doesn't look in too bad condition.
0:33:24 > 0:33:27Front sitting room there, and then through to the rear of the property.
0:33:27 > 0:33:30my guess is that this used to be a kitchen because this,
0:33:30 > 0:33:33I imagine, in the early days, would have been a two up, two down.
0:33:33 > 0:33:36But you've got the stairs up to the three bedrooms there.
0:33:36 > 0:33:39Not a bad sized little room as it is, a sort of rear sitting room, as I said.
0:33:39 > 0:33:44But then it starts to get really strange when you come to the rear of the property,
0:33:44 > 0:33:47because I haven't seen this before. It's an internal corridor.
0:33:47 > 0:33:53I guess at one stage that would have been an open alleyway to the rear of the property.
0:33:53 > 0:33:56As it is, it links into this area here.
0:33:56 > 0:33:59Again, I reckon that was open at some stage.
0:33:59 > 0:34:03This area, which is now the kitchen, would have been some sort of outbuilding.
0:34:03 > 0:34:05At some stage it's been enclosed.
0:34:05 > 0:34:09You've got different levels of floors, and the biggest concern for me,
0:34:09 > 0:34:13an outbuilding like this probably never had a damp proof course,
0:34:13 > 0:34:16so it could even be single skinned, which isn't good news.
0:34:16 > 0:34:21In terms of space it's quite nice, but I think there might be some inherent problems.
0:34:22 > 0:34:28Upstairs there's another potential issue - the bathroom is tiny, with only a bath and a basin.
0:34:28 > 0:34:31The loo is downstairs, right at the back of the house.
0:34:31 > 0:34:35In the middle of the night, that's a long way to go.
0:34:36 > 0:34:44# And if you can't hold on on your very last try
0:34:44 > 0:34:49# I'll be there in the morning to pull you through... #
0:34:54 > 0:34:57Back upstairs, what about those three bedrooms?
0:34:57 > 0:35:00It is a three-bedroom property, and when you look from the front,
0:35:00 > 0:35:05you think, "It's not that big, how on earth have those three bedrooms been squeezed, fitted in?"
0:35:05 > 0:35:08And actually, you know what, it's been done very well.
0:35:08 > 0:35:13They're not huge, the bedrooms, but you have got the space and that's good to see.
0:35:13 > 0:35:17And there are some original features to discover.
0:35:17 > 0:35:19Look at that, fantastic!
0:35:19 > 0:35:23An old fireplace, and it hasn't even got layers and layers of paint on.
0:35:23 > 0:35:24That's great news.
0:35:24 > 0:35:28Bit of Hammerite on there and that'll look absolutely beautiful.
0:35:28 > 0:35:34And something else that's absolutely stunning, the view out the windows.
0:35:37 > 0:35:41The master bedroom is a decent size, but the other two are quite boxy.
0:35:41 > 0:35:46Clearly, the house hasn't seen any improvements for some time,
0:35:46 > 0:35:49and a fair amount of work needs to be done.
0:35:50 > 0:35:54Renovating the remaining original period features, replacing the doors
0:35:54 > 0:36:01and windows, plus a new kitchen and a bathroom rethink would all bring this house up to standard.
0:36:01 > 0:36:03But would any value be added?
0:36:06 > 0:36:09I met a local estate agent to hear what he had to say.
0:36:13 > 0:36:17The appeal of this location, there's wonderful views,
0:36:17 > 0:36:23plenty of rolling countryside, and buyers do seem to like Alsagers Bank.
0:36:25 > 0:36:28How much could the place get on the rental market?
0:36:28 > 0:36:30After this property is renovated,
0:36:30 > 0:36:38the rent on this property would be £450 to £475 per calendar month.
0:36:39 > 0:36:46And what could it fetch if sold, bearing in mind the auction guide price was £60,000?
0:36:46 > 0:36:48After this property has been renovated,
0:36:48 > 0:36:55I would suggest an asking price of somewhere between £90,000 and £95,000.
0:36:58 > 0:37:04So, although it'll take some vision to see past its tired interior and build on its strengths,
0:37:04 > 0:37:07there could be profit to be made on this house.
0:37:07 > 0:37:09And there's one more positive.
0:37:09 > 0:37:13Finally, at the rear of the property, a real nice bonus.
0:37:13 > 0:37:17You've got a garden. It's heavily terraced, but it's a nice bit of outside space.
0:37:17 > 0:37:21So all in all, what you've got here is a quirky little property.
0:37:21 > 0:37:23For 60 grand, good one to go for.
0:37:23 > 0:37:26Let's see who spotted it when it went under the hammer.
0:37:27 > 0:37:30So, what shall we say for lot number 11?
0:37:30 > 0:37:3345 can I say then?
0:37:33 > 0:37:35Lot number 11, 45?
0:37:35 > 0:37:3845, I'm bid. Thank you. At £45,000.
0:37:38 > 0:37:4250. At £50,000. £50,000.
0:37:42 > 0:37:4855 it is. At £55,000. Six, is it? At...
0:37:48 > 0:37:51New bidder. £56,000.
0:37:51 > 0:37:5357? 57.
0:37:53 > 0:37:5858? 59. At £59,000.
0:37:58 > 0:38:03At £59,000, for lot number 11. 60 anywhere else?
0:38:03 > 0:38:07At £59,000... I'll take a half if it helps.
0:38:07 > 0:38:09£59,500.
0:38:09 > 0:38:12£59,500 then for the first time.
0:38:12 > 0:38:16At £59,500 for the second time...
0:38:16 > 0:38:19Third and final time, at £59,500...
0:38:19 > 0:38:24Sorry, that's just not quite enough. Again, if the bidders would like to come and talk to us on the left.
0:38:26 > 0:38:30So the lot didn't meet its reserve price and was withdrawn.
0:38:30 > 0:38:36However, a deal was made after the auction for £58,500.
0:38:36 > 0:38:42The new owners, who had already tried to buy the house, are Harold and Dorrie.
0:38:42 > 0:38:46They now have this one to add to their growing buy-to-let portfolio.
0:38:48 > 0:38:52Harold's a GP and Dorrie a head teacher who's recently retired.
0:38:52 > 0:38:56Their various buy-to-lets will help supplement their income.
0:39:00 > 0:39:03Congratulations. Tell me why you wanted to buy this place.
0:39:03 > 0:39:05We both really liked the house when we saw it.
0:39:05 > 0:39:08The fact that it had a lot of original Victorian features -
0:39:08 > 0:39:11the stained-glass windows, I think, are lovely.
0:39:11 > 0:39:14Not many houses have them still remaining - they rip them out.
0:39:14 > 0:39:19And also the proportions of the house, the rooms, the fact it's got three bedrooms.
0:39:19 > 0:39:23We were a bit worried about the toilet being downstairs but we think we can move that upstairs,
0:39:23 > 0:39:29- which is going to be much better. - So it didn't actually meet the reserve price, did it?
0:39:29 > 0:39:33No, it didn't, and we bought it immediately post-auction.
0:39:33 > 0:39:37- I believe there were a couple of offers after we purchased it.- Right.
0:39:37 > 0:39:39But luckily, they were too late.
0:39:39 > 0:39:43So you went up straightaway after the auction and put your bid in?
0:39:43 > 0:39:48Yes, we like to sit near the no-sale lot bench,
0:39:48 > 0:39:50so that we can put a bid in straightaway.
0:39:50 > 0:39:52Now there's an interesting tip.
0:39:52 > 0:39:55Tell me exactly what you're going to do to the place.
0:39:55 > 0:40:00Well, we're going to put in a new kitchen. We're going to move the toilet upstairs.
0:40:00 > 0:40:03The bathroom is quite small but we've done the measurements
0:40:03 > 0:40:06and we think we can fit the toilet in and move the washbasin.
0:40:06 > 0:40:09- And what about the bath?- We're going to have a small bath,
0:40:09 > 0:40:14one that's big enough to have a bath in but it's only going to be 120, isn't it?
0:40:14 > 0:40:17Which is the smallest you can get. But with a good shower over it.
0:40:17 > 0:40:20And we think that'll be good for families who can use it.
0:40:20 > 0:40:24I mean, we did look at other options and I think in another area,
0:40:24 > 0:40:28we might have actually had the other bedroom as the bathroom -
0:40:28 > 0:40:31we might have moved the screen between the two rooms -
0:40:31 > 0:40:36but I think in this area, we won't be able to justify that on the rent.
0:40:36 > 0:40:40This bit at the back there - have you checked out its damp proofing?
0:40:40 > 0:40:43Have you checked out if it's got a cavity wall and stuff?
0:40:43 > 0:40:47I think there is some damp problems
0:40:47 > 0:40:50and we've still not decided exactly what we're going to do,
0:40:50 > 0:40:54but once we've stripped the paper down, we'll have a better idea about that.
0:40:54 > 0:40:58We'll be putting down a damp membrane, because it's got quarry floor tiles throughout,
0:40:58 > 0:41:03including the kitchen, so the damp membrane will prevent the damp from rising.
0:41:05 > 0:41:08Their renovation plans are fairly involved,
0:41:08 > 0:41:12but Harold and Dorrie don't plan to get their hands dirty.
0:41:12 > 0:41:16Instead, they're going to hire the builder as a project manager.
0:41:16 > 0:41:21This will free up their time, but how will it affect the renovation budget?
0:41:21 > 0:41:27After all, they are reining in on the refurbishments here to maximise their rental return.
0:41:27 > 0:41:32We've looked at it fairly carefully and we hope that it will come in at £23,000.
0:41:32 > 0:41:33- For everything.- Wow!
0:41:33 > 0:41:37It would have been a lot less than that, had we been doing work ourselves.
0:41:37 > 0:41:39But as I said, we're not going to do that.
0:41:39 > 0:41:43What kind of premium are you having to pay to have somebody else manage it for you?
0:41:43 > 0:41:47Well, I have to confess, I haven't looked at that very carefully.
0:41:47 > 0:41:48Right.
0:41:48 > 0:41:53But I wouldn't be surprised if I could have done it for little more than half of that.
0:41:53 > 0:41:57- But to your mind, it's worth that extra money? - I think it's worth it, yes.
0:41:57 > 0:42:01Because we're, strictly speaking, not really developers - we're buy-to-letters -
0:42:01 > 0:42:06and approaching retirement, as I said earlier, so we're not going to be working on it, are we?
0:42:06 > 0:42:09You have to look at your own time and what that costs.
0:42:09 > 0:42:12When somebody appears to do a property up quite cheaply,
0:42:12 > 0:42:16they've put an enormous amount of time themselves and an awful lot of work and hassle,
0:42:16 > 0:42:18and we prefer not to do that, really.
0:42:18 > 0:42:23- What about timescales? Presumably it'll be done a bit quicker as well? - Yes, it will.
0:42:23 > 0:42:25We're hoping it'll be done in six to eight weeks.
0:42:25 > 0:42:28- Right. Well, congratulations. - Thank you.
0:42:28 > 0:42:32- And I look forward to seeing how you get on. - Thank you very much. Thank you.
0:42:32 > 0:42:38Well, I think Harold and Dorrie got this place for a really good price.
0:42:38 > 0:42:41And a nice little property to add to their buy-to-let portfolio.
0:42:41 > 0:42:45Taking the approach, as well, that their time is more precious than
0:42:45 > 0:42:49the money it costs to have somebody else in to do the work, and why not?
0:42:49 > 0:42:53So, how's their builder going to get on sorting this place out?
0:42:53 > 0:42:55You can find out later in the show.
0:42:58 > 0:43:02When it comes to making profit from property, timing is crucial.
0:43:02 > 0:43:04But you do have to be flexible with your plans.
0:43:04 > 0:43:06And don't let time pass you by.
0:43:06 > 0:43:09Let's see how today's buyers got on.
0:43:10 > 0:43:12Back now to Bow in east London.
0:43:12 > 0:43:16Earlier in the programme, Aytan, a former fashion photographer,
0:43:16 > 0:43:19now a documentary film-maker and property developer,
0:43:19 > 0:43:24paid £346,000 for this three-bedroom canalside cottage.
0:43:24 > 0:43:27He planned to redesign it totally.
0:43:29 > 0:43:33We'll have two bedrooms upstairs and we are debating what to do with the loft.
0:43:33 > 0:43:36There's not enough room to put another flight of stairs
0:43:36 > 0:43:39without limiting severely one of the bedrooms.
0:43:39 > 0:43:43But the cottage was in a conservation area so the outside
0:43:43 > 0:43:47had to be in keeping with the neighbouring properties.
0:43:49 > 0:43:51Almost four months later,
0:43:51 > 0:43:56we're back to see what Aytan has managed to unlock at this canalside cottage.
0:44:00 > 0:44:03Mm, interesting decking. Very nautical.
0:44:03 > 0:44:06And the new fence screens off the land next door very well indeed.
0:44:09 > 0:44:16Upstairs, the two front bedrooms have new flooring and soft, diffused light streams through the curtains.
0:44:20 > 0:44:23Smart grey bathroom walls complement the new suite.
0:44:25 > 0:44:28Downstairs, hardly any of the walls remain.
0:44:31 > 0:44:35Aytan's created a sumptuous open-plan living area,
0:44:35 > 0:44:40running the whole length of the cottage, with an extension at the back. Wow!
0:44:42 > 0:44:47There used to be a door to enter a living room here,
0:44:47 > 0:44:53which was divided into what was like a dining area here.
0:44:53 > 0:44:57You can see the boundaries of the room with the pillars.
0:44:57 > 0:45:02And here was an entrance to a small kitchen that was really just on this side,
0:45:02 > 0:45:09and then here was a door leading into an external toilet.
0:45:09 > 0:45:12I decided to knock down this wall
0:45:12 > 0:45:15and extend the whole building facing north,
0:45:15 > 0:45:20so you have all throughout the day very soft, gentle light
0:45:20 > 0:45:23coming from this direction. In the evening,
0:45:23 > 0:45:27you have direct sunlight from here and it's really nice to have dinner in the sun.
0:45:27 > 0:45:32Aytan's contractors managed to stick pretty much to the three-month schedule.
0:45:32 > 0:45:37The main delay has been waiting to see if his application to change the windows got approval.
0:45:37 > 0:45:40When the deadline passed, Aytan hadn't received any correspondence
0:45:40 > 0:45:44so he was delighted and called the builders.
0:45:45 > 0:45:49I didn't get a rejection so we're going ahead with my plan -
0:45:49 > 0:45:54take the windows out and put new windows in -
0:45:54 > 0:45:55so we knocked the windows out.
0:45:55 > 0:45:59It was a long day, hard work, but we managed to get the windows in.
0:45:59 > 0:46:05I went back home late at night to find a letter from the council saying that they rejected my application.
0:46:05 > 0:46:10So the next week we arrived, I said, "Guys, we have to put all the windows back in!"
0:46:10 > 0:46:12Oh, dear - what a pain.
0:46:12 > 0:46:18It's a good job that Aytan's team had removed the windows carefully so they could go back in.
0:46:18 > 0:46:24At least new windows in the extension and the roof were allowed.
0:46:24 > 0:46:26This was a tiny little hole.
0:46:26 > 0:46:29As you can see it's still the same space but all we changed here,
0:46:29 > 0:46:34we basically knocked the ceiling off so you get this extra height.
0:46:34 > 0:46:38And we put in a skylight to get this natural light,
0:46:38 > 0:46:41so it becomes bright. So if it's bright, it's bigger.
0:46:42 > 0:46:47Daylight is definitely a feature throughout here, thanks to the light colour scheme.
0:46:47 > 0:46:52These glass doors upstairs allow light to flow through even when the door is shut.
0:46:52 > 0:46:56But how much has Aytan had to spend to achieve this look,
0:46:56 > 0:46:59on top of the £346,000 he paid on auction day?
0:46:59 > 0:47:07I intended to spend around £75,000 to £85,000.
0:47:07 > 0:47:13But it cost more than that. I think I had a 10 to 20% contingency and I've used it.
0:47:13 > 0:47:17Well, 20% of 85,000 is another 17 grand,
0:47:17 > 0:47:21so we're talking £102,000 for the budget.
0:47:21 > 0:47:24Quite a lot. Thank goodness he's happy.
0:47:27 > 0:47:30I'm very pleased with this effect -
0:47:30 > 0:47:33that suddenly, this space has been elongated.
0:47:33 > 0:47:37It looks really, really far into this bamboo natural wall
0:47:37 > 0:47:39that we've created at the back.
0:47:39 > 0:47:44The clever trick here has been keeping the line of the floorboards inside
0:47:44 > 0:47:47the same as for the decking outside.
0:47:47 > 0:47:53It draws your eye right through, making the cottage seem as if it goes on and on.
0:47:53 > 0:47:56Aytan has certainly created a wonderful home.
0:47:56 > 0:47:58Remember, he'd contemplated moving in himself.
0:47:58 > 0:48:01So what's the plan now that he's finished?
0:48:01 > 0:48:04I think I'm going to put it on the market,
0:48:04 > 0:48:08because I need to recover the funds and then think what to do next.
0:48:08 > 0:48:11Time to get some expert marketing advice
0:48:11 > 0:48:13from two local property professionals.
0:48:14 > 0:48:17I particularly like the open-plan feel of the downstairs.
0:48:17 > 0:48:20And I particularly like the garden, the decking.
0:48:20 > 0:48:22I think the finish has been done to a high standard.
0:48:22 > 0:48:25The kitchen especially presents itself very well.
0:48:25 > 0:48:29And of course, the finished decked garden is also an asset.
0:48:29 > 0:48:31I think the finish is done modern.
0:48:31 > 0:48:36It's clean, it's airy. He obviously spent a lot of money doing it and put a lot of time and effort.
0:48:36 > 0:48:40Remember, Aytan paid £346,000 at the auction
0:48:40 > 0:48:43and has spent £102,000 on the work.
0:48:43 > 0:48:48That's a total outlay of £448,000.
0:48:48 > 0:48:51So how much could the place achieve on the open market?
0:48:53 > 0:48:56The property should go on the market
0:48:56 > 0:48:59between £575,000 and £600,000.
0:48:59 > 0:49:02I'd put this on the market for £575,000.
0:49:02 > 0:49:07That represents a very impressive £127,000 gross profit
0:49:07 > 0:49:11before the usual selling expenses.
0:49:11 > 0:49:14It's more or less what I thought.
0:49:14 > 0:49:18It's difficult to value a property like this because there's no comparables.
0:49:18 > 0:49:23It's very difficult to evaluate. If they say around 600, it's more than what we thought, I'm happy.
0:49:23 > 0:49:26Aytan's creative eye has transformed this cottage.
0:49:26 > 0:49:31Even with the original windows, this property's outlook seems bright.
0:49:31 > 0:49:36It's been a very interesting project. I've never done anything like this before so it's been very challenging.
0:49:36 > 0:49:38I learned a lot, I would do it again.
0:49:41 > 0:49:45Earlier in the programme, we were in the Staffordshire village of Alsagers Bank,
0:49:45 > 0:49:47enjoying these far-reaching views.
0:49:47 > 0:49:52Harold and Dorrie had bought this mid-terrace for £58,500
0:49:52 > 0:49:55to add to their growing property portfolio.
0:49:55 > 0:49:57They live about five miles away.
0:49:57 > 0:50:03Dorrie is a retired headmistress and Harold a GP who was about to retire.
0:50:03 > 0:50:05But they had no intention of doing the work themselves.
0:50:05 > 0:50:10They had a local builder they'd used before lined up to project manage the refurbishment.
0:50:14 > 0:50:17A couple of months have passed and back at the property,
0:50:17 > 0:50:21it looks like their builder has done just what the doctor ordered.
0:50:21 > 0:50:23You still walk right into the living room,
0:50:23 > 0:50:27but what a difference changing the fireplace and the carpet have made.
0:50:27 > 0:50:31At the back, the dining room has benefited from similar treatment,
0:50:31 > 0:50:34with gloss paint and neutral walls.
0:50:36 > 0:50:41Upstairs, the three bedrooms appear significantly bigger since their makeover
0:50:41 > 0:50:45and I'm delighted they've retained the original fireplaces.
0:50:45 > 0:50:49The house has been rewired and the old lead piping replaced,
0:50:49 > 0:50:54which has certainly put a spring back into the step of this Victorian property.
0:50:54 > 0:50:57We wanted to retain a Victorian look, really.
0:50:57 > 0:50:59A traditional house, which I think is very popular.
0:50:59 > 0:51:02We tried to preserve original features as far as possible.
0:51:02 > 0:51:07One thing we weren't able to do, of course, was move the corridor door to the front.
0:51:07 > 0:51:10We hoped to have that as a front door to match the front windows
0:51:10 > 0:51:13but unfortunately it wouldn't fit. We couldn't make it fit.
0:51:14 > 0:51:20The corridor remains but the only loo was at the back, accessible only through the kitchen.
0:51:20 > 0:51:23We're very pleased with how the kitchen has turned out.
0:51:23 > 0:51:28There was a lot of work done in here because it was in such an awful state before.
0:51:28 > 0:51:30It's been completely gutted and stripped.
0:51:30 > 0:51:35There was a wall here separating what was the only toilet in the house
0:51:35 > 0:51:38from the very poor kitchen so we had the wall taken out.
0:51:38 > 0:51:41Originally we weren't going to do that but when we started,
0:51:41 > 0:51:45we realised it would be much better to have a nice, long through-kitchen
0:51:45 > 0:51:50so now there is room and space for, hopefully, a dishwasher and a washing machine,
0:51:50 > 0:51:51if people want to put them in.
0:51:51 > 0:51:54Taking into account that the kitchen is quite narrow,
0:51:54 > 0:51:57we've managed to put these narrow cupboards in
0:51:57 > 0:52:00so there's more storage than you'd expect to have in such a small kitchen.
0:52:00 > 0:52:03Brand new windows, so lots of ventilation.
0:52:03 > 0:52:07It's a lovely, bright, clean look. We're quite pleased with it.
0:52:07 > 0:52:11Maximising the space of the kitchen is an obvious bonus,
0:52:11 > 0:52:15but was it really sensible to move the loo?
0:52:15 > 0:52:18I think it was definitely worth moving the toilet.
0:52:18 > 0:52:24Nobody wants a downstairs toilet off the rear kitchen. It would be extremely hard to let, I'd think.
0:52:24 > 0:52:26True, but a big plumbing task.
0:52:26 > 0:52:31So, who was responsible for moving the loo upstairs into the bathroom?
0:52:31 > 0:52:33We have a project manager, Mick, who did all that
0:52:33 > 0:52:36and he seemed to make something quite difficult quite simple.
0:52:36 > 0:52:39The toilet moved upstairs was no problem at all.
0:52:39 > 0:52:42There was already a drain there, so it was quite straightforward.
0:52:42 > 0:52:48But squeezing three things in where, originally, there were two inevitably meant a compromise.
0:52:48 > 0:52:51As you probably recall, this is a very small room
0:52:51 > 0:52:55and we did have a problem because there was no toilet so something had to go.
0:52:55 > 0:53:00The bath is a lot smaller than it was but I think people renting this unit
0:53:00 > 0:53:04would probably want a shower over the bath.
0:53:04 > 0:53:06As with many old properties,
0:53:06 > 0:53:12you never know quite what problems you'll find until the refurbishment starts.
0:53:12 > 0:53:17The discovery here was damp in the dining room and in the rear upstairs bedroom,
0:53:17 > 0:53:20where the flashing round the chimney had perished.
0:53:20 > 0:53:23The slight damp issue in the back room on the back wall.
0:53:23 > 0:53:27The rest of it wasn't too bad but we did have to damp-proof inject that particular wall,
0:53:27 > 0:53:29which seems to have resolved the problem.
0:53:29 > 0:53:32Professionals make it sound so simple,
0:53:32 > 0:53:36and letting the experts tackle problems is Harold and Dorrie's strategy.
0:53:36 > 0:53:39We've not been hands-on and we never intended to be, did we?
0:53:39 > 0:53:44No, no. And Mick's done other things for us before. We know we just leave him to manage it.
0:53:44 > 0:53:47But employing tradesmen to do everything can be expensive.
0:53:47 > 0:53:50It all depends on how you look at it.
0:53:50 > 0:53:54A lot of people obviously do all the work themselves.
0:53:54 > 0:53:57And they regard the profits as profits and, of course,
0:53:57 > 0:54:01a lot of that is actually hard labour that they've worked for.
0:54:01 > 0:54:06We've not done that, so our margins would obviously be a lot less
0:54:06 > 0:54:09if we were selling, which we're not.
0:54:09 > 0:54:11We'll be renting.
0:54:11 > 0:54:14Well, now's a good time to find out what two local estate agents
0:54:14 > 0:54:18think of the house, its kitchen and relocated loo.
0:54:20 > 0:54:22They made a very, very good job with the property.
0:54:22 > 0:54:25It's good quality, it's light, airy.
0:54:25 > 0:54:28Good kitchen, good bathroom. It's in terrific condition.
0:54:28 > 0:54:32I think the kitchen's fantastic - it's got a really nice feel to it.
0:54:32 > 0:54:36A lot of natural light coming into it and there's a lot of counter space,
0:54:36 > 0:54:38which will also be useful in the future.
0:54:38 > 0:54:42It's larger than your average terrace property. It makes a statement.
0:54:42 > 0:54:44It's clean, it's modern - definite plus.
0:54:44 > 0:54:50I think the bathroom's extremely functional. The only downside to it is the bath is rather small.
0:54:50 > 0:54:55Yes, you could fit a full length bath in there but you wouldn't be able to put the loo in there.
0:54:55 > 0:54:59They've made a good decision there to get the loo upstairs.
0:54:59 > 0:55:01It's a definite, definite plus.
0:55:01 > 0:55:04That's a positive endorsement if I ever heard one.
0:55:04 > 0:55:09But how much has the refurbishment cost and did they stick to their budget?
0:55:09 > 0:55:12We ended up at 24,500.
0:55:12 > 0:55:17And we had planned... We thought it might be 23, we were hoping. But we're not too unhappy with that.
0:55:17 > 0:55:23How much rental income could they potentially earn from this property?
0:55:23 > 0:55:30The rental income is going to be £475 to £500 per calendar month.
0:55:30 > 0:55:34I would expect it to achieve a rental value of £500 per calendar month.
0:55:34 > 0:55:36I think that's very fair.
0:55:36 > 0:55:40- Yes, we're pleased with that. - We were thinking of asking 485.
0:55:40 > 0:55:46The house certainly looks impressive but added to the purchase price of £58,500,
0:55:46 > 0:55:50how much have they spent in total, including all their costs?
0:55:50 > 0:55:53Altogether, 85,000.
0:55:53 > 0:55:56That includes our legal fees, auctioneer's fee,
0:55:56 > 0:56:01- purchase cost - every expenditure that we've had.- Everything.
0:56:01 > 0:56:04What about the value of the property now?
0:56:04 > 0:56:07From a resale point of view,
0:56:07 > 0:56:12we'd expect this property to achieve figures of £95,000 to £100,000.
0:56:12 > 0:56:17I'd recommend a resale price of £99,950.
0:56:17 > 0:56:21Strictly speaking, we're not really interested in resale values,
0:56:21 > 0:56:23- but it is interesting to know. - Nice to know.
0:56:25 > 0:56:27Once it's let out, then what?
0:56:27 > 0:56:29Is it back to an auction?
0:56:29 > 0:56:33We might get another one or two properties. We've got eight now.
0:56:33 > 0:56:38- This is the only empty one.- They're all let. Buying them hopefully in a place people want to live,
0:56:38 > 0:56:42and the type of properties people can afford, seems to be working out.
0:56:42 > 0:56:46It's been a delight trying to restore some of its former glory, really.
0:56:46 > 0:56:50It's a beautiful little house and it would make a lovely home for somebody.
0:56:53 > 0:56:58- And there'll be more great stories for you next time on Homes Under The Hammer.- Make sure you join us then.
0:56:58 > 0:57:00- See you then.- Goodbye.- Goodbye.
0:57:18 > 0:57:21Subtitles by Red Bee Media Ltd
0:57:21 > 0:57:24E-mail subtitling@bbc.co.uk