Episode 37 Homes Under the Hammer


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Episode 37

Martin Roberts and Lucy Alexander visit a property in Plymouth, a house in London and a semi in Staffordshire.


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In today's challenging market,

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do you think you could hack it in the world of property?

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If you get it right, it can be an exciting way to earn money.

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But if you get it wrong, well, who knows?

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One thing to stack things in your favour, though, is to buy your next property under the hammer.

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There are tense moments in the auction room.

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Who will make the first bid at the right time?

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Properties can change people's fortunes for better or worse.

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So, what inspired people on today's show?

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Don't be put off by the time and money this property in Plymouth will need. It could be worth it.

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I'm already seeing a big restoration job, but I'm also seeing a big house.

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If you fancy trying your hand at an auction, this London house might not have a lot of character, but...

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The thing for me that still gets me going about this place, is the location.

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And this Staffordshire semi might look a bit of a joke, but it's brought a smile to my face.

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Ha ha ha! Look at that! Fantastic.

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All these properties were bought at auction and we find out

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who bought them and what they paid when they went under the hammer.

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With mentions as far back as the Domesday Book, it's perhaps not surprising that

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Plymouth is an eclectic mix of old, new and even slightly bizarre styles of architecture.

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And the Mutley area of the city is a case in point.

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You never know what's behind the front doors here.

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A very intriguing property on the cards, I have to say.

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It's this house here that was up for auction.

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It's got letting rooms downstairs and a separate flat upstairs.

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Sounds like it has potential.

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Or would it just be too much of a jigsaw to try and put together?

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It seems reasonable value at a guide price of £125,000.

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But this house on a corner plot will definitely need a new roof.

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On the plus side, this is a popular student area.

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So, with a two-bed flat and other rentable rooms downstairs,

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I think this has rental potential written all over it.

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So, what's to behold across the threshold?

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Well, that's a bit damp, straight away, on the ceiling there.

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You don't normally see it in a porch entrance like that.

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But straight in to the main part of the property, and as I said,

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it's a kind of mish-mash, things going everywhere, kind of property straight away.

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One room there, another room there, another room going off back there.

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There's a loo. And actually, I don't think...

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they're in that nice a condition.

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I mean, look at this.

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It's hard to imagine the last time this was used.

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But if it is recently, that's not good.

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It all needs to be stripped back and sorted out.

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If you can see through the mess, it's actually quite a good-sized room.

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But things like the ceiling, that's going to have to come down.

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I imagine this whole thing has got damp in it.

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I'm already seeing a big restoration job, but I'm also seeing a big house.

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Despite the rather dilapidated state, there are some great character features.

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Along with the two well proportioned bay-fronted rooms on this floor,

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there's a rather oddly shaped bedroom, a pretty grotty bathroom,

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and a basement kitchen, which is simply dire.

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So, this downstairs area not only needs a lot of work to get it back in order,

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but I think the layout also needs a complete rethink.

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But before I consider possible changes down here, let's have a look at the flat upstairs.

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Well, up here is a self-contained flat, and pretty spacious it is too.

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What have we got? Bathroom, kitchen there.

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Two bedrooms and a living room. And obviously, you've got this strange shape to the rooms,

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partly because the house is actually on a corner.

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But it's a big flat up here, it really is.

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But you know what? I think to maximise the rental potential

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of this place, I would want to see this converted into individual rooms.

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A lot of them have already got their own locks on, anyway.

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Not a lot of work to do that, however, once it becomes a house of multiple occupation, you do

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have things like fire regulations, fire alarms, soundproofing, and all sorts of other things to consider.

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So there's money involved to get it sorted out.

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But once you've done that, it turns itself into a money-making machine.

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So, with two bedrooms, a lounge, kitchen and bathroom,

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you could just bring this flat up to current regulations and rent it out.

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But as the rooms downstairs need work, and the layout to be rejigged,

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I think turning this back into a single property, albeit with lots of individual rooms,

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could be your best option.

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With a little thought, you could get six, maybe seven, rentable rooms here.

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Then it really could be a substantial money-making machine.

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Alternatively, of course,

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you could convert it into two two-bedroomed flats.

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What does a local property expert think?

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This properties is a classic auction property.

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It's screaming out for possibly conversion into two flats.

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Or is it going to be someone buying it as an investment

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and letting it out room by room? So, I love this property.

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The great attraction here is the options available.

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But what makes most sense from a financial point of view?

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If the property is renovated to become a family home, you could expect to put

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it on the market for somewhere between £180,000 and £190,000.

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If the property was converted into two, possibly two-bedroom apartments,

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they could fetch each in the region of £110,000 to £115,000.

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Two apartments may increase the sale value of the property slightly, but what about its rental potential?

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If the property was converted into two flats,

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they probably would rent out about £550 per calendar month each.

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If the end user decides to create a multi-room let,

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possibly seven letting rooms here, you could expect to achieve probably £80 to £90 per week, per room.

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Seven rooms could bring in over £2,500 a month -

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over double what two flats would achieve.

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Well, you don't need to be a student to realise that this has a degree of potential.

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I think the key is to convert all the rooms back into individual letting rooms

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and rent them out to the droves of students that are around here.

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Now, there's lots of work to do that, but I think it would be worth it.

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Let's find out who went for it at the auction.

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73 is three ground-floor letting rooms

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and a self-contained, two-bedroom flat on the top floor.

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£115 is where I'll kick off.

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Getting the message at 115? Thank you. 115. 115. 115.

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If you're happy, 115. 116. 118. 122.

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124. 126.

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128. 130.

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131, OK. 131.

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And two.

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At 132. 33?

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34. 35.

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36. At 36.

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36 and a half. 137.

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137. 137. And a half.

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138.

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138 and a half. 139.

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And a half.

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140.

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140 and a half.

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At 140 and a half.

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140 and a half once. Are you in?

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140 and a half twice, here it is at 140 and a half. And going.

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Dan made the successful bid of £140,500.

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Dan's one half of a developing duo, and, along with his business partner

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Mark, he met me at their Plymouth property.

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Mark, Dan, congratulations. Good to meet you both.

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Why did you want to buy the house?

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-We wanted to enter student accommodation.

-Right.

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Now, at the moment, obviously, we've got individual rooms downstairs and a flat upstairs here.

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What are you going to do to convert it into what you think will maximise its potential?

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Strip it out, basically, get as many rooms as we can into it.

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We're trying for seven, Dan?

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-I think seven.

-Seven. Basically. And just take it from there, really.

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So, seven bedrooms. And any sort of communal areas?

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Yeah, we're looking to put a communal area at the back.

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It'll be a kitchen-cum-lounge, and we'll take out the back of the building

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and make an extension of about three metres going out at the back.

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They can extend by three metres without needing planning permission, which would delay them.

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That speed is vital as they hope to have it ready in just two months, in time for the next student intake.

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They've given themselves a budget of 50,000 to make this a magnificent,

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seven-bedroom house, fit for the most discerning student.

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What are students looking for these days, from your experience?

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-High quality.

-En suites etc.

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-En suites?

-Yeah, it's a big thing.

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-Really?

-Yeah.

-I don't remember having an en suite when I was a student.

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-Times have moved on.

-It's almost hotel accommodation for students.

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Crikey. I almost wish I was a student again.

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Accommodation has certainly gone up a notch since my day, but then again so have the rents.

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Dan and Mark aim for around £350 to £400 per month per room.

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So how does it work between you? What's the partnership here?

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I basically will be doing the majority of the building work. Dan does the administration side.

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Loads of running around involved, loads.

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So, yeah, it works well, really.

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Have we seen you before the show?

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-Yes, a couple of times before.

-As what? In what guise? Have you bought, or...?

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I've done some work for developers in the past, seeing what they made of it, basically,

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I thought it was time to do it for myself.

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Time to move on.

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-So I have, and that's it, really.

-And how does that feel?

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Great, great. It's better doing it for yourself, definitely.

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Got no customers to deal with, have you?

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The job is good, it's the customers that are the problem.

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Steady.

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-What's your experience before you did this?

-I've been in the property game for the last 15 years.

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What prompted you to enter this world?

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-I was skiing for a week...

-Skiing?

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Yeah, skiing for a week, and a friend was skiing for six months,

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or the season, and I thought, "What do you do?"

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He basically let out property and he lived off that income.

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So I thought, "I'd like some of that."

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So Dan is hoping this property can generate enough revenue to allow him to live the high life.

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But first they've got a mountain of work to organise and do

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before either of them can enjoy any rest and relaxation.

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Well, Mark and Dan are doing exactly the right thing to maximise the financial potential of this place.

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But it all rests, certainly for the first year, on getting those students in in the new year,

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and that's a bit of a risk, as is keeping to budgets and timescales.

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So how are they going to get on?

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You can find out later on the show.

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This is the Regent's Canal.

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Head that way and you end up in Islington and the start of the canal at Little Venice.

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Head this way and you get to Limehouse and the London Docklands.

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This really is a quiet oasis right in the heart of London.

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I'm here to see a property situated right next to this lovely canal just over there.

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It's a three-bedroom, semi-detached property.

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One drawback is that you have to get here on foot.

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There's no vehicle access.

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I can't wait to get inside and have a good old nose around.

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You have to cross the canal footbridge and go on to the towpath before you reach the cottage.

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The access across the front yard is shared with the adjoining cottage.

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This property in London's Bow area went to auction guided at £300,000.

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It looks well worth the walk to get to it.

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Now, once I'm inside, straightaway you can see it's been magnolia'd.

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It's all the same colour throughout.

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Lots of woodchip wallpaper.

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This, come here, is what really concerns me.

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You've got a gas pipe sticking out here.

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Could be quite dangerous. I think I'd box that in.

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Then you could risk falling over it once coming down the stairs, so that's a bit of an issue.

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I'd try to get that sorted out.

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Really nice-sized reception room through there, again painted magnolia.

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We've got the kitchen through there. Quite small, but tidy.

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And in here, a second reception room towards the back of the property.

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You've got a few little cupboards here and there, a feature fireplace, not to everybody's taste.

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But it's not terribly exciting inside,

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not packed with lots of lovely features.

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The thing for me that still gets me going about this place is the location.

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Upstairs there are three bedrooms, two doubles and a single.

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This could make a great family home.

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And who wouldn't be delighted to be so close to the beautiful Victoria Park?

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This property already has double-glazed windows.

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But if you did want to change them or alter the exterior in any way,

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you must be warned because this is in a conservation area.

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Even simple things like putting up a satellite dish or painting your

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front door a different colour could all be restricted.

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You have to run any changes by the local conservation officer first.

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At the back there's an even more exciting prospect for development.

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Here's the garden, or back yard, you might like to call it.

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But what I love is that over this fence is Victoria Park.

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But look at what's over this fence - a nice big piece of land, and as a

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developer, I'm more excited about that than the house, to be honest.

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Get your hands on it, build another property, or at the

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very least create some off-street parking or even a bigger garden.

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But before we get excited, that belongs to British Waterways,

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and as far as I can find out there are no plans to sell it any time soon.

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Still, one can live in hope.

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You never know what might happen in the future.

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And who knows, maybe if you pleaded long enough they might just sell it to you.

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But even if not, this property has still got

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tremendous development potential as it's in a very desirable area.

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What does the local estate agent make of it?

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I asked one along to tell me more.

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It obviously needs some refurbishment works

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in order for it to appeal to a family,

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but I believe it's a good location,

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but parking may be an issue for certain buyers.

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I'd say the property needs a complete refurbishment.

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I'd say it needs rewiring, new kitchen, a new bathroom,

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maybe an extension to give that larger kitchen diner effect

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which is appealing in today's market.

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The good news is that there's an allowance for a three metre

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extension to the property with no need for planning permission.

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So how much should the new owners spend here, and how much could they make?

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In order to maximise the potential from the property,

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I think if you spent 75,000 and did a really superb job, you could well see 500,000 here.

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So if bought for close to the guide price of £300,000, spending 75 grand

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on a renovation could still result in a very healthy profit.

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In this area, there's demand for rental property.

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This particular property may put people off due to parking.

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However, per calendar month I'd guess-timate between £1,500 and £1,800.

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Now, the lack of vehicle access may put a few buyers off this property.

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But for most, I think a waterside location like this...well, it would be a dream come true for me.

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This cottage is a real find.

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So who bid for this one? Let's find out at auction.

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Right, Lot 44.

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A great location, canalside position, semi-detached house.

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Start realistic - 250?

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Not going to go below 250.

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Work upwards from there.

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It's worth 250 all day long.

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250. 255. 255. 260, sir.

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265. 270.

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With you, sir. 270. 275.

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280.

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285.

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290.

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295.

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300.

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305. 310.

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315. 320.

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No? Too late. New spot. 320.

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321. 322.

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Not taking, 325, yes?

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330. 331.

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Have a think. Anyone else?

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331. 332. 333. 334. 335.

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336. 337. 338. 339. 340. 341.

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342. 343.

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344. 345.

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346. 347.

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Have a think. 346.

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Back with you. 347?

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If not, 346, first time,

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second time, third and last time, if you're all done, sold. Nice buy.

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That final bid of £346,000 was made by Aytan, originally from Israel.

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Aytan has lived and worked in London for the last 30 years.

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He qualified as an architect,

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pursued a career in fashion photography,

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and is now a documentary film maker.

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He does a bit of property developing on the side.

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I met up with him back at the house to find out his plans for this, his latest investment.

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Aytan, congratulations.

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-Thank you very much.

-How exciting for you.

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Thank you, it is.

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Why did you want to buy this?

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The location here was pretty unique.

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I really like the fact that it was by the canal and by the park.

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No neighbours, so it's a house in the middle of a park with no neighbours.

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Remind me like the Queen's setting.

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She doesn't have neighbours, so I thought, "That should be special."

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-So you think you're like the Queen, do you?

-No!

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MUSIC: "God Save The Queen"

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Maybe that glorious view of the canal

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has made Aytan miss the fact he does actually have some neighbours.

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I suppose it feels so tranquil here that you'd hardly notice.

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Aytan sounds in love with this house, so is he going to move in himself?

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This is a serious question for me because it's very, very tempting to get hold of this.

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I'm not sure what I'm going to do. I love this place.

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I could see myself living here easily.

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How would it affect my business life and my own money?

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I have a bit of an outside investment in here, a small one, but still, it's something to consider.

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So it's a difficult question. I can't say at this point.

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Do you really see yourself living in a house like this?

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Looking at you, you're a stylish guy.

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You've probably got the artistic eye.

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But this property isn't that stylish inside.

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It's very bland, it's very magnolia and woodchip.

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What would you do to really make this rock?

0:21:050:21:09

Yeah, it's pretty boring inside.

0:21:090:21:11

-It is!

-It's going to be a total makeover here.

0:21:110:21:15

In fact Aytan has already had plans drawn up, so I asked him to show me his grand vision.

0:21:160:21:23

We have a plan. This is the ground floor.

0:21:230:21:26

Here we are, this is the front door.

0:21:260:21:29

It's very, very important in every property,

0:21:290:21:32

the moment you open the door, if it's not a wow, forget it.

0:21:320:21:36

What are you going to do to make that a wow?

0:21:360:21:38

To make this a wow, as soon as you open the door you'll see the back of the property.

0:21:380:21:43

You see throughout, across the whole property, then you get a sense of how big it is.

0:21:430:21:47

Then it'll be glass and hopefully will be spring, there will be lots of green leaves, it'll be beautiful.

0:21:470:21:53

So the light, this is northern light coming here, so the light will come from here,

0:21:530:21:57

-this large window will come here and that will light the whole space.

-I love it.

0:21:570:22:02

But what I want to know is, you've got sort of three levels here.

0:22:020:22:05

Then you go upstairs, and how many bedrooms have we got upstairs?

0:22:050:22:08

We'll have two bedrooms upstairs, and this is a very crucial issue.

0:22:080:22:13

We're debating what to do with the loft.

0:22:130:22:15

It's very difficult because there's not enough room

0:22:150:22:19

to put another flight of stairs up to the loft without limiting severely one of the bedrooms.

0:22:190:22:25

So this is something we're debating, whether we're going to do a little gallery in every bedroom.

0:22:250:22:31

We open the ceiling and have a little gallery, so it'll be kind of like a library or an office.

0:22:310:22:36

Are you going to be adding on any external building work at all?

0:22:360:22:40

I want to open this wall completely here so we'll be facing the garden.

0:22:400:22:45

It'll be made of glass,

0:22:450:22:48

so the idea that this area here will be a dining area,

0:22:480:22:52

and you can sit in the morning and you have your cup of tea and biscuits

0:22:520:22:55

and you can look into the park with the birds.

0:22:550:22:58

How can you look into the park? You've got a fence there.

0:22:580:23:00

You obviously need to keep that fence there for security, so you can't actually see into the park.

0:23:000:23:06

Knowing it's there, is that what you mean?

0:23:060:23:07

You can look up, you can see the trees, but this fence, I'm thinking of maybe changing it a bit.

0:23:070:23:13

Maybe a kind of a fence that has a blind that you can actually turn it and open, something like this.

0:23:130:23:19

-I'm thinking about this.

-I love that idea!

0:23:190:23:21

I'll have to speak to my carpenter. So you can press a button, it opens.

0:23:210:23:25

Oh, you've got such an artistic eye. I knew it when I met you!

0:23:250:23:28

This property's in a conservation area

0:23:280:23:31

so Aytan will have to make sure the work is in keeping with the surroundings

0:23:310:23:35

in order to get planning permission.

0:23:350:23:38

You really are taking this to the absolute max, aren't you?

0:23:380:23:41

That's the idea. Otherwise, what's the point?

0:23:410:23:44

I'm doing it mainly for the passion, mainly for fun, to see the transformation.

0:23:440:23:50

I'm not just doing it to bang it in and get out of the door.

0:23:500:23:53

How long do you think it's going to take you to complete the work here?

0:23:530:23:56

How many months?

0:23:560:23:58

Hmm...

0:23:580:24:00

I'd say at least three months.

0:24:000:24:03

So in three months' time there will be some pretty hefty changes?

0:24:030:24:06

Oh, yeah, this won't be recognisable in three months' time.

0:24:060:24:09

-Really?

-Yeah, yeah.

-I'm so excited!

0:24:090:24:12

I can't wait to see what he achieves in those three months.

0:24:120:24:16

With a budget of around £100,000, he'll have more than enough to let his creative juices flow.

0:24:160:24:23

I think Aytan has definitely fallen for that canalside cottage,

0:24:230:24:27

and I don't blame him.

0:24:270:24:29

But somehow I can't see him doing that up and then just selling it on.

0:24:290:24:33

He loves it too much. He's certainly got some fantastic plans for it.

0:24:330:24:37

But I think the local conservation officers may have a few issues with the changes he wants.

0:24:370:24:42

So will he be able to make it into his dream home and live here?

0:24:420:24:46

Or will he be tempted to cash in and take the money?

0:24:460:24:50

You can find out exactly what happens later on in the show.

0:24:500:24:54

Coming up, a property in Staffordshire that has been extended, which is good news and bad.

0:24:540:25:00

In terms of space it's quite nice, but I think there may be some inherent problems.

0:25:000:25:04

We return to the canalside cottage. But is the project in deep water?

0:25:040:25:10

I had a 10 to 20% contingency, and I've used it.

0:25:100:25:14

But first it's back to Plymouth where roles are clearly defined.

0:25:170:25:20

He's sort of very hands-on and I'm in the background.

0:25:200:25:24

Earlier we were in Mutley, Plymouth, where two friends, Dan and Mark,

0:25:260:25:30

had bought this dastardly dog of a property for £140,500.

0:25:300:25:36

Their intention was to convert it into a house of multiple occupancy and let the rooms out to students.

0:25:360:25:43

Seven months had passed when we met up again with Dan and Mark

0:25:460:25:49

to see how the refurbishment had progressed.

0:25:490:25:53

Outside, the property has been transformed.

0:25:530:25:56

It's been rendered and painted pastel yellow.

0:25:560:25:59

New windows have been installed, and the roof has been replaced.

0:25:590:26:03

Bearing in mind the condition of the house,

0:26:030:26:05

I suppose it's no surprise that in order to fix the structural problems,

0:26:050:26:09

the inside had to be totally stripped out.

0:26:090:26:12

But now seven bedrooms have been created.

0:26:150:26:18

There are two bedrooms on the ground floor,

0:26:180:26:20

three up on the first floor,

0:26:200:26:24

and a further two up in the loft conversion.

0:26:240:26:28

They all have en suite facilities.

0:26:280:26:30

A communal living area and kitchen have been created for the students at the back

0:26:300:26:35

thanks to the new extension, and as Dan explains, it required a refit from the top down.

0:26:350:26:42

We started this project by ripping everything out of this property.

0:26:420:26:46

The floors were rotten, all the joinery was rotten, the staircase was rotten.

0:26:460:26:52

The roof was rotten, so we took everything out.

0:26:520:26:55

We took the complete roof off. We started on a Friday evening, took the roof off,

0:26:550:26:59

worked all weekend, and by Monday dinner time we had the roof back on.

0:26:590:27:04

We basically worked our way down through the house, ripping everything out.

0:27:040:27:08

The entire property has been completely refurbished,

0:27:080:27:11

with new wiring, windows, plastering and a new boiler.

0:27:110:27:15

As it's a house of multiple occupancy with seven en suite bedrooms,

0:27:170:27:22

the regulations demand two separate cooking facilities.

0:27:220:27:24

So two sinks, two ovens and two fridges were installed,

0:27:240:27:28

although as is the case here, they CAN be in the same area.

0:27:280:27:33

We decided to put an extension on the property to make this room almost double the size.

0:27:330:27:39

We looked into it and we could do it under permitted development, so we cracked ahead and got it built.

0:27:390:27:46

The sun deck is a real bonus for students, a great place to enjoy a drink or revise for exams.

0:27:460:27:53

This is one of the rooms we've converted.

0:27:550:27:57

They were a very awkward shape, but as you can see, we've made it work.

0:27:570:28:02

We've filled in bits and pieces so we can get beds up against walls, etc.

0:28:020:28:05

They've all got en suites, obviously. They're clean, tidy, and it's the ideal size.

0:28:050:28:10

The loft conversion was quite a large job, and it required a lot of steel to be put into the roof

0:28:100:28:15

and all the way down the building to support it independently.

0:28:150:28:19

It was costly.

0:28:190:28:22

So how much has the refurbishment cost on top of the £140,500 they paid at auction?

0:28:220:28:29

We blew the budget because we went up into the roof.

0:28:290:28:32

We spent 50% more, up to about £75,000.

0:28:320:28:37

That's a lot of money, but the facilities on offer for the discerning student are impressive.

0:28:370:28:42

As well as being en suite, every room has internet access,

0:28:420:28:46

and the rent includes all the water, gas, and electricity.

0:28:460:28:50

Me and Mark work very well. He's sort of very hands-on and I'm sort of in the background

0:28:520:28:57

doing the purchasing of properties and that side of things.

0:28:570:29:01

So the hard graft has been down to Mark and the team he assembled.

0:29:010:29:05

Did he enjoy the project?

0:29:050:29:07

I've enjoyed the project immensely.

0:29:070:29:09

We had a good team of chaps here.

0:29:090:29:11

Looking forward to doing the next one, which is in the pipeline.

0:29:110:29:14

So yeah, it's been great.

0:29:140:29:17

The effort's certainly been worth it because they have already managed to let out the rooms.

0:29:170:29:21

Samuel, for one, is delighted with his digs.

0:29:210:29:24

Before I got here from America, I already called the university. They sent me pictures.

0:29:240:29:29

I was like, "Wow, really? This is a student house?"

0:29:290:29:32

I was like, "I'm taking it."

0:29:320:29:34

I think student houses are better nowadays.

0:29:340:29:38

They should keep doing it like that.

0:29:380:29:40

-And the highlight?

-The couches.

0:29:400:29:43

The couches are the best.

0:29:430:29:45

Time we did some homework with two local property experts

0:29:480:29:52

to hear their opinions of this seven-bedroom student house.

0:29:520:29:56

Very impressed with the standard of finish of the property,

0:29:560:30:00

and it's fantastic that there's an en suite in every room,

0:30:000:30:03

and there's certainly a demand for students in this area for this level of accommodation.

0:30:030:30:08

I like the self-contained facilities of each individual room,

0:30:080:30:11

so it'll work very well in the rental market.

0:30:110:30:13

The bedrooms are done to a very nice standard. It's fantastic that each room has an en suite.

0:30:130:30:18

Obviously students won't be arguing then over bathrooms in the morning!

0:30:180:30:22

I love the living space at the back of the property.

0:30:220:30:25

They've extended out and incorporated the space that was there before,

0:30:250:30:28

making a very pleasant and liveable area for the students to study.

0:30:280:30:32

How much rent should the students be paying?

0:30:320:30:35

For the area we're in, I'd expect the rooms to rent for students

0:30:370:30:40

at about £85, maybe £90 per calendar week.

0:30:400:30:42

The rooms in the property would achieve approximately £85 per week.

0:30:420:30:46

Well, we're getting £100 per week, including all bills.

0:30:460:30:50

So probably netting about that amount.

0:30:500:30:52

If they successfully let out all seven rooms at £100 a week,

0:30:520:30:57

that's £700 a week, which will produce £2,800 a month.

0:30:570:31:02

Although student lets are normally only for term time, which is about 44 weeks a year,

0:31:020:31:08

Dan and Mark's tenants are on an agreement for 50 weeks, so you can see the potential income here.

0:31:080:31:14

How much is the property worth now?

0:31:140:31:16

Dan and Mark have invested £75,000 on top of the £140,500 they paid at auction,

0:31:160:31:23

so they've spent almost £216,000.

0:31:230:31:27

If the property was placed up for market as it is, as a rent machine,

0:31:270:31:30

it could fetch somewhere in the region of £220,000 to £230,000.

0:31:300:31:34

I'd expect to put this poverty on the market for offers in the region of £225,000.

0:31:340:31:40

£225,000 means a gross profit of around £10,000, before the usual selling expenses.

0:31:400:31:46

But maybe selling isn't the shrewdest move.

0:31:460:31:49

The experts' advice is simple.

0:31:490:31:51

If this was my property and I was achieving maybe £85, maybe £90 per calendar week

0:31:540:31:58

and bringing in the better part of £30,000 per annum,

0:31:580:32:01

I'd certainly leave it as a rent machine and enjoy the income.

0:32:010:32:04

-I think we'll keep hold of it.

-Definitely, yeah.

0:32:040:32:06

It's a pension, isn't it, at the end of the day?

0:32:060:32:08

Looking forward to the next one.

0:32:080:32:10

I'm in Staffordshire, on the outskirts of Stoke-on-Trent.

0:32:190:32:23

Actually, this is one of the highest points in the county.

0:32:230:32:26

As you can see, fantastic views, although it's a bit parky.

0:32:260:32:31

I'm in Alsagers Bank, six miles west of Stoke-on-Trent.

0:32:350:32:39

The village enjoys unrivalled views and sunsets over the Cheshire plain to the west.

0:32:390:32:45

And this is the property I'm here to see.

0:32:490:32:51

It's a three-bedroom Victorian house at a guide price of £60,000.

0:32:510:32:54

Let's hope inside it's as spectacular as the views are on the outside.

0:32:540:32:59

I tell you what, that's a nice start.

0:33:050:33:07

Original features there, lovely lead stained glass.

0:33:070:33:11

We like that. Big window, which is going to make the most of those views.

0:33:110:33:14

Needs to be updated, but at least there's an open fire.

0:33:140:33:17

Don't like the fact that it's straight in off the road.

0:33:170:33:21

That's not ideal. But it doesn't look in too bad condition.

0:33:210:33:24

Front sitting room there, and then through to the rear of the property.

0:33:240:33:27

my guess is that this used to be a kitchen because this,

0:33:270:33:30

I imagine, in the early days, would have been a two up, two down.

0:33:300:33:33

But you've got the stairs up to the three bedrooms there.

0:33:330:33:36

Not a bad sized little room as it is, a sort of rear sitting room, as I said.

0:33:360:33:39

But then it starts to get really strange when you come to the rear of the property,

0:33:390:33:44

because I haven't seen this before. It's an internal corridor.

0:33:440:33:47

I guess at one stage that would have been an open alleyway to the rear of the property.

0:33:470:33:53

As it is, it links into this area here.

0:33:530:33:56

Again, I reckon that was open at some stage.

0:33:560:33:59

This area, which is now the kitchen, would have been some sort of outbuilding.

0:33:590:34:03

At some stage it's been enclosed.

0:34:030:34:05

You've got different levels of floors, and the biggest concern for me,

0:34:050:34:09

an outbuilding like this probably never had a damp proof course,

0:34:090:34:13

so it could even be single skinned, which isn't good news.

0:34:130:34:16

In terms of space it's quite nice, but I think there might be some inherent problems.

0:34:160:34:21

Upstairs there's another potential issue - the bathroom is tiny, with only a bath and a basin.

0:34:220:34:28

The loo is downstairs, right at the back of the house.

0:34:280:34:31

In the middle of the night, that's a long way to go.

0:34:310:34:35

# And if you can't hold on on your very last try

0:34:360:34:44

# I'll be there in the morning to pull you through... #

0:34:440:34:49

Back upstairs, what about those three bedrooms?

0:34:540:34:57

It is a three-bedroom property, and when you look from the front,

0:34:570:35:00

you think, "It's not that big, how on earth have those three bedrooms been squeezed, fitted in?"

0:35:000:35:05

And actually, you know what, it's been done very well.

0:35:050:35:08

They're not huge, the bedrooms, but you have got the space and that's good to see.

0:35:080:35:13

And there are some original features to discover.

0:35:130:35:17

Look at that, fantastic!

0:35:170:35:19

An old fireplace, and it hasn't even got layers and layers of paint on.

0:35:190:35:23

That's great news.

0:35:230:35:24

Bit of Hammerite on there and that'll look absolutely beautiful.

0:35:240:35:28

And something else that's absolutely stunning, the view out the windows.

0:35:280:35:34

The master bedroom is a decent size, but the other two are quite boxy.

0:35:370:35:41

Clearly, the house hasn't seen any improvements for some time,

0:35:410:35:46

and a fair amount of work needs to be done.

0:35:460:35:49

Renovating the remaining original period features, replacing the doors

0:35:500:35:54

and windows, plus a new kitchen and a bathroom rethink would all bring this house up to standard.

0:35:540:36:01

But would any value be added?

0:36:010:36:03

I met a local estate agent to hear what he had to say.

0:36:060:36:09

The appeal of this location, there's wonderful views,

0:36:130:36:17

plenty of rolling countryside, and buyers do seem to like Alsagers Bank.

0:36:170:36:23

How much could the place get on the rental market?

0:36:250:36:28

After this property is renovated,

0:36:280:36:30

the rent on this property would be £450 to £475 per calendar month.

0:36:300:36:38

And what could it fetch if sold, bearing in mind the auction guide price was £60,000?

0:36:390:36:46

After this property has been renovated,

0:36:460:36:48

I would suggest an asking price of somewhere between £90,000 and £95,000.

0:36:480:36:55

So, although it'll take some vision to see past its tired interior and build on its strengths,

0:36:580:37:04

there could be profit to be made on this house.

0:37:040:37:07

And there's one more positive.

0:37:070:37:09

Finally, at the rear of the property, a real nice bonus.

0:37:090:37:13

You've got a garden. It's heavily terraced, but it's a nice bit of outside space.

0:37:130:37:17

So all in all, what you've got here is a quirky little property.

0:37:170:37:21

For 60 grand, good one to go for.

0:37:210:37:23

Let's see who spotted it when it went under the hammer.

0:37:230:37:26

So, what shall we say for lot number 11?

0:37:270:37:30

45 can I say then?

0:37:300:37:33

Lot number 11, 45?

0:37:330:37:35

45, I'm bid. Thank you. At £45,000.

0:37:350:37:38

50. At £50,000. £50,000.

0:37:380:37:42

55 it is. At £55,000. Six, is it? At...

0:37:420:37:48

New bidder. £56,000.

0:37:480:37:51

57? 57.

0:37:510:37:53

58? 59. At £59,000.

0:37:530:37:58

At £59,000, for lot number 11. 60 anywhere else?

0:37:580:38:03

At £59,000... I'll take a half if it helps.

0:38:030:38:07

£59,500.

0:38:070:38:09

£59,500 then for the first time.

0:38:090:38:12

At £59,500 for the second time...

0:38:120:38:16

Third and final time, at £59,500...

0:38:160:38:19

Sorry, that's just not quite enough. Again, if the bidders would like to come and talk to us on the left.

0:38:190:38:24

So the lot didn't meet its reserve price and was withdrawn.

0:38:260:38:30

However, a deal was made after the auction for £58,500.

0:38:300:38:36

The new owners, who had already tried to buy the house, are Harold and Dorrie.

0:38:360:38:42

They now have this one to add to their growing buy-to-let portfolio.

0:38:420:38:46

Harold's a GP and Dorrie a head teacher who's recently retired.

0:38:480:38:52

Their various buy-to-lets will help supplement their income.

0:38:520:38:56

Congratulations. Tell me why you wanted to buy this place.

0:39:000:39:03

We both really liked the house when we saw it.

0:39:030:39:05

The fact that it had a lot of original Victorian features -

0:39:050:39:08

the stained-glass windows, I think, are lovely.

0:39:080:39:11

Not many houses have them still remaining - they rip them out.

0:39:110:39:14

And also the proportions of the house, the rooms, the fact it's got three bedrooms.

0:39:140:39:19

We were a bit worried about the toilet being downstairs but we think we can move that upstairs,

0:39:190:39:23

-which is going to be much better.

-So it didn't actually meet the reserve price, did it?

0:39:230:39:29

No, it didn't, and we bought it immediately post-auction.

0:39:290:39:33

-I believe there were a couple of offers after we purchased it.

-Right.

0:39:330:39:37

But luckily, they were too late.

0:39:370:39:39

So you went up straightaway after the auction and put your bid in?

0:39:390:39:43

Yes, we like to sit near the no-sale lot bench,

0:39:430:39:48

so that we can put a bid in straightaway.

0:39:480:39:50

Now there's an interesting tip.

0:39:500:39:52

Tell me exactly what you're going to do to the place.

0:39:520:39:55

Well, we're going to put in a new kitchen. We're going to move the toilet upstairs.

0:39:550:40:00

The bathroom is quite small but we've done the measurements

0:40:000:40:03

and we think we can fit the toilet in and move the washbasin.

0:40:030:40:06

-And what about the bath?

-We're going to have a small bath,

0:40:060:40:09

one that's big enough to have a bath in but it's only going to be 120, isn't it?

0:40:090:40:14

Which is the smallest you can get. But with a good shower over it.

0:40:140:40:17

And we think that'll be good for families who can use it.

0:40:170:40:20

I mean, we did look at other options and I think in another area,

0:40:200:40:24

we might have actually had the other bedroom as the bathroom -

0:40:240:40:28

we might have moved the screen between the two rooms -

0:40:280:40:31

but I think in this area, we won't be able to justify that on the rent.

0:40:310:40:36

This bit at the back there - have you checked out its damp proofing?

0:40:360:40:40

Have you checked out if it's got a cavity wall and stuff?

0:40:400:40:43

I think there is some damp problems

0:40:430:40:47

and we've still not decided exactly what we're going to do,

0:40:470:40:50

but once we've stripped the paper down, we'll have a better idea about that.

0:40:500:40:54

We'll be putting down a damp membrane, because it's got quarry floor tiles throughout,

0:40:540:40:58

including the kitchen, so the damp membrane will prevent the damp from rising.

0:40:580:41:03

Their renovation plans are fairly involved,

0:41:050:41:08

but Harold and Dorrie don't plan to get their hands dirty.

0:41:080:41:12

Instead, they're going to hire the builder as a project manager.

0:41:120:41:16

This will free up their time, but how will it affect the renovation budget?

0:41:160:41:21

After all, they are reining in on the refurbishments here to maximise their rental return.

0:41:210:41:27

We've looked at it fairly carefully and we hope that it will come in at £23,000.

0:41:270:41:32

-For everything.

-Wow!

0:41:320:41:33

It would have been a lot less than that, had we been doing work ourselves.

0:41:330:41:37

But as I said, we're not going to do that.

0:41:370:41:39

What kind of premium are you having to pay to have somebody else manage it for you?

0:41:390:41:43

Well, I have to confess, I haven't looked at that very carefully.

0:41:430:41:47

Right.

0:41:470:41:48

But I wouldn't be surprised if I could have done it for little more than half of that.

0:41:480:41:53

-But to your mind, it's worth that extra money?

-I think it's worth it, yes.

0:41:530:41:57

Because we're, strictly speaking, not really developers - we're buy-to-letters -

0:41:570:42:01

and approaching retirement, as I said earlier, so we're not going to be working on it, are we?

0:42:010:42:06

You have to look at your own time and what that costs.

0:42:060:42:09

When somebody appears to do a property up quite cheaply,

0:42:090:42:12

they've put an enormous amount of time themselves and an awful lot of work and hassle,

0:42:120:42:16

and we prefer not to do that, really.

0:42:160:42:18

-What about timescales? Presumably it'll be done a bit quicker as well?

-Yes, it will.

0:42:180:42:23

We're hoping it'll be done in six to eight weeks.

0:42:230:42:25

-Right. Well, congratulations.

-Thank you.

0:42:250:42:28

-And I look forward to seeing how you get on.

-Thank you very much. Thank you.

0:42:280:42:32

Well, I think Harold and Dorrie got this place for a really good price.

0:42:320:42:38

And a nice little property to add to their buy-to-let portfolio.

0:42:380:42:41

Taking the approach, as well, that their time is more precious than

0:42:410:42:45

the money it costs to have somebody else in to do the work, and why not?

0:42:450:42:49

So, how's their builder going to get on sorting this place out?

0:42:490:42:53

You can find out later in the show.

0:42:530:42:55

When it comes to making profit from property, timing is crucial.

0:42:580:43:02

But you do have to be flexible with your plans.

0:43:020:43:04

And don't let time pass you by.

0:43:040:43:06

Let's see how today's buyers got on.

0:43:060:43:09

Back now to Bow in east London.

0:43:100:43:12

Earlier in the programme, Aytan, a former fashion photographer,

0:43:120:43:16

now a documentary film-maker and property developer,

0:43:160:43:19

paid £346,000 for this three-bedroom canalside cottage.

0:43:190:43:24

He planned to redesign it totally.

0:43:240:43:27

We'll have two bedrooms upstairs and we are debating what to do with the loft.

0:43:290:43:33

There's not enough room to put another flight of stairs

0:43:330:43:36

without limiting severely one of the bedrooms.

0:43:360:43:39

But the cottage was in a conservation area so the outside

0:43:390:43:43

had to be in keeping with the neighbouring properties.

0:43:430:43:47

Almost four months later,

0:43:490:43:51

we're back to see what Aytan has managed to unlock at this canalside cottage.

0:43:510:43:56

Mm, interesting decking. Very nautical.

0:44:000:44:03

And the new fence screens off the land next door very well indeed.

0:44:030:44:06

Upstairs, the two front bedrooms have new flooring and soft, diffused light streams through the curtains.

0:44:090:44:16

Smart grey bathroom walls complement the new suite.

0:44:200:44:23

Downstairs, hardly any of the walls remain.

0:44:250:44:28

Aytan's created a sumptuous open-plan living area,

0:44:310:44:35

running the whole length of the cottage, with an extension at the back. Wow!

0:44:350:44:40

There used to be a door to enter a living room here,

0:44:420:44:47

which was divided into what was like a dining area here.

0:44:470:44:53

You can see the boundaries of the room with the pillars.

0:44:530:44:57

And here was an entrance to a small kitchen that was really just on this side,

0:44:570:45:02

and then here was a door leading into an external toilet.

0:45:020:45:09

I decided to knock down this wall

0:45:090:45:12

and extend the whole building facing north,

0:45:120:45:15

so you have all throughout the day very soft, gentle light

0:45:150:45:20

coming from this direction. In the evening,

0:45:200:45:23

you have direct sunlight from here and it's really nice to have dinner in the sun.

0:45:230:45:27

Aytan's contractors managed to stick pretty much to the three-month schedule.

0:45:270:45:32

The main delay has been waiting to see if his application to change the windows got approval.

0:45:320:45:37

When the deadline passed, Aytan hadn't received any correspondence

0:45:370:45:40

so he was delighted and called the builders.

0:45:400:45:44

I didn't get a rejection so we're going ahead with my plan -

0:45:450:45:49

take the windows out and put new windows in -

0:45:490:45:54

so we knocked the windows out.

0:45:540:45:55

It was a long day, hard work, but we managed to get the windows in.

0:45:550:45:59

I went back home late at night to find a letter from the council saying that they rejected my application.

0:45:590:46:05

So the next week we arrived, I said, "Guys, we have to put all the windows back in!"

0:46:050:46:10

Oh, dear - what a pain.

0:46:100:46:12

It's a good job that Aytan's team had removed the windows carefully so they could go back in.

0:46:120:46:18

At least new windows in the extension and the roof were allowed.

0:46:180:46:24

This was a tiny little hole.

0:46:240:46:26

As you can see it's still the same space but all we changed here,

0:46:260:46:29

we basically knocked the ceiling off so you get this extra height.

0:46:290:46:34

And we put in a skylight to get this natural light,

0:46:340:46:38

so it becomes bright. So if it's bright, it's bigger.

0:46:380:46:41

Daylight is definitely a feature throughout here, thanks to the light colour scheme.

0:46:420:46:47

These glass doors upstairs allow light to flow through even when the door is shut.

0:46:470:46:52

But how much has Aytan had to spend to achieve this look,

0:46:520:46:56

on top of the £346,000 he paid on auction day?

0:46:560:46:59

I intended to spend around £75,000 to £85,000.

0:46:590:47:07

But it cost more than that. I think I had a 10 to 20% contingency and I've used it.

0:47:070:47:13

Well, 20% of 85,000 is another 17 grand,

0:47:130:47:17

so we're talking £102,000 for the budget.

0:47:170:47:21

Quite a lot. Thank goodness he's happy.

0:47:210:47:24

I'm very pleased with this effect -

0:47:270:47:30

that suddenly, this space has been elongated.

0:47:300:47:33

It looks really, really far into this bamboo natural wall

0:47:330:47:37

that we've created at the back.

0:47:370:47:39

The clever trick here has been keeping the line of the floorboards inside

0:47:390:47:44

the same as for the decking outside.

0:47:440:47:47

It draws your eye right through, making the cottage seem as if it goes on and on.

0:47:470:47:53

Aytan has certainly created a wonderful home.

0:47:530:47:56

Remember, he'd contemplated moving in himself.

0:47:560:47:58

So what's the plan now that he's finished?

0:47:580:48:01

I think I'm going to put it on the market,

0:48:010:48:04

because I need to recover the funds and then think what to do next.

0:48:040:48:08

Time to get some expert marketing advice

0:48:080:48:11

from two local property professionals.

0:48:110:48:13

I particularly like the open-plan feel of the downstairs.

0:48:140:48:17

And I particularly like the garden, the decking.

0:48:170:48:20

I think the finish has been done to a high standard.

0:48:200:48:22

The kitchen especially presents itself very well.

0:48:220:48:25

And of course, the finished decked garden is also an asset.

0:48:250:48:29

I think the finish is done modern.

0:48:290:48:31

It's clean, it's airy. He obviously spent a lot of money doing it and put a lot of time and effort.

0:48:310:48:36

Remember, Aytan paid £346,000 at the auction

0:48:360:48:40

and has spent £102,000 on the work.

0:48:400:48:43

That's a total outlay of £448,000.

0:48:430:48:48

So how much could the place achieve on the open market?

0:48:480:48:51

The property should go on the market

0:48:530:48:56

between £575,000 and £600,000.

0:48:560:48:59

I'd put this on the market for £575,000.

0:48:590:49:02

That represents a very impressive £127,000 gross profit

0:49:020:49:07

before the usual selling expenses.

0:49:070:49:11

It's more or less what I thought.

0:49:110:49:14

It's difficult to value a property like this because there's no comparables.

0:49:140:49:18

It's very difficult to evaluate. If they say around 600, it's more than what we thought, I'm happy.

0:49:180:49:23

Aytan's creative eye has transformed this cottage.

0:49:230:49:26

Even with the original windows, this property's outlook seems bright.

0:49:260:49:31

It's been a very interesting project. I've never done anything like this before so it's been very challenging.

0:49:310:49:36

I learned a lot, I would do it again.

0:49:360:49:38

Earlier in the programme, we were in the Staffordshire village of Alsagers Bank,

0:49:410:49:45

enjoying these far-reaching views.

0:49:450:49:47

Harold and Dorrie had bought this mid-terrace for £58,500

0:49:470:49:52

to add to their growing property portfolio.

0:49:520:49:55

They live about five miles away.

0:49:550:49:57

Dorrie is a retired headmistress and Harold a GP who was about to retire.

0:49:570:50:03

But they had no intention of doing the work themselves.

0:50:030:50:05

They had a local builder they'd used before lined up to project manage the refurbishment.

0:50:050:50:10

A couple of months have passed and back at the property,

0:50:140:50:17

it looks like their builder has done just what the doctor ordered.

0:50:170:50:21

You still walk right into the living room,

0:50:210:50:23

but what a difference changing the fireplace and the carpet have made.

0:50:230:50:27

At the back, the dining room has benefited from similar treatment,

0:50:270:50:31

with gloss paint and neutral walls.

0:50:310:50:34

Upstairs, the three bedrooms appear significantly bigger since their makeover

0:50:360:50:41

and I'm delighted they've retained the original fireplaces.

0:50:410:50:45

The house has been rewired and the old lead piping replaced,

0:50:450:50:49

which has certainly put a spring back into the step of this Victorian property.

0:50:490:50:54

We wanted to retain a Victorian look, really.

0:50:540:50:57

A traditional house, which I think is very popular.

0:50:570:50:59

We tried to preserve original features as far as possible.

0:50:590:51:02

One thing we weren't able to do, of course, was move the corridor door to the front.

0:51:020:51:07

We hoped to have that as a front door to match the front windows

0:51:070:51:10

but unfortunately it wouldn't fit. We couldn't make it fit.

0:51:100:51:13

The corridor remains but the only loo was at the back, accessible only through the kitchen.

0:51:140:51:20

We're very pleased with how the kitchen has turned out.

0:51:200:51:23

There was a lot of work done in here because it was in such an awful state before.

0:51:230:51:28

It's been completely gutted and stripped.

0:51:280:51:30

There was a wall here separating what was the only toilet in the house

0:51:300:51:35

from the very poor kitchen so we had the wall taken out.

0:51:350:51:38

Originally we weren't going to do that but when we started,

0:51:380:51:41

we realised it would be much better to have a nice, long through-kitchen

0:51:410:51:45

so now there is room and space for, hopefully, a dishwasher and a washing machine,

0:51:450:51:50

if people want to put them in.

0:51:500:51:51

Taking into account that the kitchen is quite narrow,

0:51:510:51:54

we've managed to put these narrow cupboards in

0:51:540:51:57

so there's more storage than you'd expect to have in such a small kitchen.

0:51:570:52:00

Brand new windows, so lots of ventilation.

0:52:000:52:03

It's a lovely, bright, clean look. We're quite pleased with it.

0:52:030:52:07

Maximising the space of the kitchen is an obvious bonus,

0:52:070:52:11

but was it really sensible to move the loo?

0:52:110:52:15

I think it was definitely worth moving the toilet.

0:52:150:52:18

Nobody wants a downstairs toilet off the rear kitchen. It would be extremely hard to let, I'd think.

0:52:180:52:24

True, but a big plumbing task.

0:52:240:52:26

So, who was responsible for moving the loo upstairs into the bathroom?

0:52:260:52:31

We have a project manager, Mick, who did all that

0:52:310:52:33

and he seemed to make something quite difficult quite simple.

0:52:330:52:36

The toilet moved upstairs was no problem at all.

0:52:360:52:39

There was already a drain there, so it was quite straightforward.

0:52:390:52:42

But squeezing three things in where, originally, there were two inevitably meant a compromise.

0:52:420:52:48

As you probably recall, this is a very small room

0:52:480:52:51

and we did have a problem because there was no toilet so something had to go.

0:52:510:52:55

The bath is a lot smaller than it was but I think people renting this unit

0:52:550:53:00

would probably want a shower over the bath.

0:53:000:53:04

As with many old properties,

0:53:040:53:06

you never know quite what problems you'll find until the refurbishment starts.

0:53:060:53:12

The discovery here was damp in the dining room and in the rear upstairs bedroom,

0:53:120:53:17

where the flashing round the chimney had perished.

0:53:170:53:20

The slight damp issue in the back room on the back wall.

0:53:200:53:23

The rest of it wasn't too bad but we did have to damp-proof inject that particular wall,

0:53:230:53:27

which seems to have resolved the problem.

0:53:270:53:29

Professionals make it sound so simple,

0:53:290:53:32

and letting the experts tackle problems is Harold and Dorrie's strategy.

0:53:320:53:36

We've not been hands-on and we never intended to be, did we?

0:53:360:53:39

No, no. And Mick's done other things for us before. We know we just leave him to manage it.

0:53:390:53:44

But employing tradesmen to do everything can be expensive.

0:53:440:53:47

It all depends on how you look at it.

0:53:470:53:50

A lot of people obviously do all the work themselves.

0:53:500:53:54

And they regard the profits as profits and, of course,

0:53:540:53:57

a lot of that is actually hard labour that they've worked for.

0:53:570:54:01

We've not done that, so our margins would obviously be a lot less

0:54:010:54:06

if we were selling, which we're not.

0:54:060:54:09

We'll be renting.

0:54:090:54:11

Well, now's a good time to find out what two local estate agents

0:54:110:54:14

think of the house, its kitchen and relocated loo.

0:54:140:54:18

They made a very, very good job with the property.

0:54:200:54:22

It's good quality, it's light, airy.

0:54:220:54:25

Good kitchen, good bathroom. It's in terrific condition.

0:54:250:54:28

I think the kitchen's fantastic - it's got a really nice feel to it.

0:54:280:54:32

A lot of natural light coming into it and there's a lot of counter space,

0:54:320:54:36

which will also be useful in the future.

0:54:360:54:38

It's larger than your average terrace property. It makes a statement.

0:54:380:54:42

It's clean, it's modern - definite plus.

0:54:420:54:44

I think the bathroom's extremely functional. The only downside to it is the bath is rather small.

0:54:440:54:50

Yes, you could fit a full length bath in there but you wouldn't be able to put the loo in there.

0:54:500:54:55

They've made a good decision there to get the loo upstairs.

0:54:550:54:59

It's a definite, definite plus.

0:54:590:55:01

That's a positive endorsement if I ever heard one.

0:55:010:55:04

But how much has the refurbishment cost and did they stick to their budget?

0:55:040:55:09

We ended up at 24,500.

0:55:090:55:12

And we had planned... We thought it might be 23, we were hoping. But we're not too unhappy with that.

0:55:120:55:17

How much rental income could they potentially earn from this property?

0:55:170:55:23

The rental income is going to be £475 to £500 per calendar month.

0:55:230:55:30

I would expect it to achieve a rental value of £500 per calendar month.

0:55:300:55:34

I think that's very fair.

0:55:340:55:36

-Yes, we're pleased with that.

-We were thinking of asking 485.

0:55:360:55:40

The house certainly looks impressive but added to the purchase price of £58,500,

0:55:400:55:46

how much have they spent in total, including all their costs?

0:55:460:55:50

Altogether, 85,000.

0:55:500:55:53

That includes our legal fees, auctioneer's fee,

0:55:530:55:56

-purchase cost - every expenditure that we've had.

-Everything.

0:55:560:56:01

What about the value of the property now?

0:56:010:56:04

From a resale point of view,

0:56:040:56:07

we'd expect this property to achieve figures of £95,000 to £100,000.

0:56:070:56:12

I'd recommend a resale price of £99,950.

0:56:120:56:17

Strictly speaking, we're not really interested in resale values,

0:56:170:56:21

-but it is interesting to know.

-Nice to know.

0:56:210:56:23

Once it's let out, then what?

0:56:250:56:27

Is it back to an auction?

0:56:270:56:29

We might get another one or two properties. We've got eight now.

0:56:290:56:33

-This is the only empty one.

-They're all let. Buying them hopefully in a place people want to live,

0:56:330:56:38

and the type of properties people can afford, seems to be working out.

0:56:380:56:42

It's been a delight trying to restore some of its former glory, really.

0:56:420:56:46

It's a beautiful little house and it would make a lovely home for somebody.

0:56:460:56:50

-And there'll be more great stories for you next time on Homes Under The Hammer.

-Make sure you join us then.

0:56:530:56:58

-See you then.

-Goodbye.

-Goodbye.

0:56:580:57:00

Subtitles by Red Bee Media Ltd

0:57:180:57:21

E-mail [email protected]

0:57:210:57:24

Martin Roberts and Lucy Alexander visit a property in Plymouth, a house in London and a semi in Staffordshire.

All of these properties were sold at auction; Martin and Lucy find out who bought them, and what they paid when they went under the hammer.