Episode 49 Homes Under the Hammer


Download Subtitles

SRT

ASS


Episode 49

Martin Roberts and Lucy Alexander visit a house in Dorset that is full of surprises, a property on Portobello Road in London and a cottage in Newquay.


Similar Content

Browse content similar to Episode 49. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

If you're like Martin and I and you absolutely love property,

0:00:020:00:04

it can be difficult to switch off, even in today's market conditions.

0:00:040:00:08

Whether you see your dream home on holiday, while walking round town

0:00:080:00:12

or in an estate agent's window, you're never short of stimulation.

0:00:120:00:15

But one place that can really get your pulse racing

0:00:150:00:19

is in the auction room!

0:00:190:00:20

When it comes to buying property, everyone has different requirements,

0:00:460:00:50

whether it's a new home or a house you want to rent out.

0:00:500:00:53

That's right. For most, location is key.

0:00:530:00:55

For others, it's about the character

0:00:550:00:58

and for the rest it's about how much money it can generate.

0:00:580:01:01

Let's find out what inspired our buyers on today's show.

0:01:010:01:04

It may not look much, but this house in Dorset is full of surprises!

0:01:050:01:10

But where it gets really exciting...is there.

0:01:100:01:14

I'll be on Portobello Road, London,

0:01:140:01:17

to check out some groovy '70s decor.

0:01:170:01:21

This harks back from that era, too.

0:01:210:01:23

A serving hatch. I love that!

0:01:230:01:25

And when this cottage in Newquay sold at auction in 2005,

0:01:250:01:30

it wasn't everything it was cracked up to be.

0:01:300:01:33

Catch up with it later to see its transformation.

0:01:330:01:35

All these properties have been sold at auction.

0:01:370:01:39

We find out who bought them

0:01:390:01:41

and for how much, when they went under the hammer!

0:01:410:01:44

I'm in historical Sherborne in Dorset. It is a lovely place.

0:01:470:01:52

That is the abbey.

0:01:520:01:55

Founded around AD 700, the abbey has developed from a Saxon cathedral

0:01:580:02:03

into one of the most beautiful parish churches in England.

0:02:030:02:06

For many, it's one of the showpiece attractions of Dorset

0:02:060:02:10

and our destination of Sherborne is simply magnificent.

0:02:100:02:13

Just a few minutes' walk away, this is the house.

0:02:150:02:18

Three bedrooms, guide price 100,000 quid. Sounds pretty good.

0:02:180:02:22

First impressions are pretty favourable, too.

0:02:230:02:26

The roof looks a bit shot, and the windows need an overhaul,

0:02:260:02:30

but I do love that stained glass around the door.

0:02:300:02:33

The original brickwork is in a healthy state and thankfully,

0:02:330:02:36

it's not been painted over.

0:02:360:02:38

So this house has the makings of a very good property indeed.

0:02:380:02:42

Ooh, that's a nice start. Love the floor.

0:02:450:02:48

That would be beautiful.

0:02:480:02:50

It'll take a bit of cleaning, but it's definitely worth doing.

0:02:500:02:52

Nice entrance hall. We like that.

0:02:520:02:54

Interesting new balustrade. Bit unusual.

0:02:540:02:58

But that's more original. Floorboards to die for. Fantastic.

0:02:580:03:02

And an old original fireplace which is pretty.

0:03:020:03:05

That's the front sitting room. Rear sitting room there.

0:03:050:03:08

New plaster, which is good to see.

0:03:080:03:11

Floorboards in great condition.

0:03:110:03:13

So all looking good. What is really nice is lots of original features

0:03:130:03:17

like these doors. The original doors.

0:03:170:03:19

Somebody's stripped them back, though.

0:03:190:03:22

They fit perfectly, so that is good to see.

0:03:220:03:25

Through to the kitchen. Not massive in size.

0:03:250:03:29

I think you could do something with it, with a bit of imagination.

0:03:290:03:33

Again, I don't know quite what's going on here.

0:03:330:03:35

There's paint, looks like it's been recently used paint,

0:03:350:03:39

all over the place. And new windows.

0:03:390:03:42

I need to investigate this a bit more.

0:03:440:03:46

Now, I'm visiting the property a few weeks after the auction

0:03:460:03:50

you'll see in a moment.

0:03:500:03:52

It turns out that the new owners had to do a considerable amount of work

0:03:520:03:57

after they'd won the bidding, but before they could get a mortgage.

0:03:570:04:01

At least that means it's now in a better state for me to take a look.

0:04:010:04:05

Upstairs, a really nice feel to this house. Intrinsically nice.

0:04:060:04:11

Bathroom and loo there, exactly where it should be.

0:04:110:04:15

Then three decent-sized bedrooms.

0:04:150:04:18

But where it gets really exciting...is there.

0:04:180:04:22

Yep, it's just a loft hatch, but I can see, looking up there,

0:04:220:04:26

that there's enough headroom to make another room, another bedroom,

0:04:260:04:30

to turn this into a four-bedroomed house.

0:04:300:04:33

That's what some other houses in this street have done.

0:04:330:04:37

One of those was recently on the market for 260,000 quid.

0:04:370:04:40

So, bearing in mind the guide price of this place was just 100,000...

0:04:400:04:46

..I think it's worth considering. Don't you?

0:04:470:04:50

Well, that's a potential margin you don't see every day.

0:04:500:04:53

Maybe that's why the new buyers

0:04:530:04:55

were so keen to meet the mortgage requirements to get the property.

0:04:550:04:59

With gorgeous floorboards, fireplaces and sash windows,

0:04:590:05:03

this place looks like a winner.

0:05:030:05:05

And it's just a short walk away from all that Sherborne has to offer.

0:05:050:05:09

At the rear of the property here, not a huge amount of space

0:05:090:05:13

but quite a useable area.

0:05:130:05:15

At the moment, though, dominated completely by these two sheds.

0:05:150:05:19

So what are your options?

0:05:190:05:21

One, you could knock them down to create maybe a little courtyard

0:05:210:05:26

and maybe a garden of some sort.

0:05:260:05:28

However, I'm a big fan of sheds. You can never have too much storage.

0:05:280:05:32

Personally, I would tart them up and keep them.

0:05:320:05:36

Trust me!

0:05:370:05:39

Yes, I confess to being a bit of a hoarder.

0:05:390:05:41

So any storage is always important to me.

0:05:410:05:44

But if you prefer outside space, you can always pull them down.

0:05:440:05:48

Time to see what a local estate agent will make

0:05:480:05:51

of this highly attractive period house.

0:05:510:05:54

It's in a very sought-after location

0:05:540:05:56

and was guided at £100,000.

0:05:560:05:58

It's a lovely house. Potentially, it's all here.

0:06:020:06:05

It's a Victorian semi-detached house,

0:06:050:06:08

a stone's-throw from the town centre.

0:06:080:06:10

Although it needs a lot of work,

0:06:100:06:13

potentially it's a very nice property.

0:06:130:06:15

My only reservation is the size.

0:06:170:06:19

It's a bit small, but it has a lot of space that could be converted

0:06:190:06:23

if it was worth it.

0:06:230:06:24

It doesn't normally increase the value of the property

0:06:250:06:29

by a great deal.

0:06:290:06:30

So it would be very much a personal choice

0:06:300:06:33

rather than actually increasing the value of the property.

0:06:330:06:37

True, because it would be possible to reconfigure the layout here

0:06:370:06:41

to maximise the space, so there are options.

0:06:410:06:43

What I would do is turn

0:06:440:06:46

one of the downstairs reception rooms into a kitchen.

0:06:460:06:49

And the small room at the back

0:06:490:06:52

I would turn into a utility room-cum-downstairs loo.

0:06:520:06:56

You don't have a loo, at the moment, downstairs.

0:06:560:06:59

But I would keep, basically, the rooms very much as they are

0:06:590:07:02

because it's a nicely-proportioned Victorian house.

0:07:020:07:05

Let's talk figures. How much could someone stand to make here?

0:07:050:07:09

I would have thought the price,

0:07:090:07:11

when renovated, if done to a high standard,

0:07:110:07:14

would be somewhere in the region of 210 to 220,000.

0:07:140:07:18

The rental for this property

0:07:180:07:20

per calendar month would be about 650 to £700.

0:07:200:07:23

Well, great location, good house.

0:07:230:07:25

Potential to expand. What more do you want? A great one to go for.

0:07:250:07:29

Let's see who spotted it when it went to auction.

0:07:290:07:32

Lucerne. Three bedrooms.

0:07:330:07:36

It's a super buy. Guide £100,000.

0:07:360:07:38

I do have a proxy bid which I'll execute from the rostrum

0:07:380:07:42

so that it's quite clear that it's my bid.

0:07:420:07:45

I'm starting the bidding at £80,000.

0:07:450:07:48

At 80,000, ladies and gentlemen, it's my bid.

0:07:480:07:50

Looking for 85. At 85.

0:07:500:07:53

90 is my bid. At 90.

0:07:530:07:55

95.

0:07:550:07:56

And 100 is the proxy bid. At 100.

0:07:560:07:59

At 105.

0:07:590:08:01

At 105. Anyone else?

0:08:010:08:03

110 on my left.

0:08:030:08:04

110. 115.

0:08:040:08:06

120. 120. 125.

0:08:060:08:10

125. I'm out, ladies and gentlemen.

0:08:100:08:12

125. Lady's bid.

0:08:120:08:13

At 125.

0:08:130:08:15

125. I'll take two if it helps you.

0:08:150:08:17

127. 127. 130.

0:08:170:08:20

132. 135.

0:08:200:08:23

135. Lady in black at 135.

0:08:230:08:27

135,000. Are you all done, ladies and gentlemen?

0:08:270:08:31

136. 137.

0:08:310:08:34

137. 137 standing. 137.

0:08:340:08:38

138.

0:08:380:08:39

139. 139.

0:08:390:08:43

140. 140. 141?

0:08:430:08:46

At 141,000, then, standing straight in front of me.

0:08:460:08:50

Are you all done, ladies and gentlemen?

0:08:500:08:52

Lady's bid. Straight there. 141.

0:08:520:08:56

Congratulations. Well done, you.

0:08:560:08:58

That winning bid of 141,000 was made by Linda,

0:08:580:09:01

a local housing association manager.

0:09:010:09:04

Originally from South Wales,

0:09:070:09:09

20 years ago she visited friends in Dorset,

0:09:090:09:12

fell in love with the place and made this part of the world her home.

0:09:120:09:16

I went to the property to meet Linda and find out about her plans.

0:09:160:09:19

-Linda, lovely to meet you. Congratulations.

-Thank you.

0:09:210:09:25

-Nice house.

-Yep.

-Yeah. Why did you want to buy it?

0:09:250:09:29

I like the location. And the house has good development potential,

0:09:290:09:33

I thought. I really like it.

0:09:330:09:35

-Have you done anything like this before?

-I've done work on properties

0:09:350:09:39

I've lived in, but not taken on a property just to develop.

0:09:390:09:43

So it's a first opportunity, really.

0:09:430:09:46

I'm doing it with my partner, who's a carpenter, so...

0:09:460:09:48

-That's useful.

-We'll be doing a lot of work ourselves.

0:09:480:09:52

Don't forget, they've already had to do work to get a mortgage.

0:09:520:09:57

We've rewired it, we've had a specialist's report on damp,

0:09:570:10:01

dry rot, for mortgage purposes.

0:10:010:10:03

-Before you bought it or after?

-After we bought it, before completion.

0:10:030:10:07

We had to sign a building licence to do that.

0:10:070:10:10

You bought it at auction, the hammer went down.

0:10:100:10:12

You've exchanged contracts.

0:10:120:10:14

In between that time and completion,

0:10:140:10:19

-paying the rest of the money, you had to do all the work?

-Yep.

0:10:190:10:22

But if you hadn't completed...

0:10:220:10:24

We were going to make sure it completed!

0:10:240:10:26

But if it hadn't completed, you'd have done all this work...

0:10:260:10:29

-And lost the money.

-The deposit and all the work.

0:10:290:10:32

The mortgage company we went to,

0:10:320:10:34

they stipulated before the auction there were a couple of things to do,

0:10:340:10:37

but when we'd completed that, they re-inspected and said,

0:10:370:10:42

"We're not satisfied. We need more work done."

0:10:420:10:45

So there were two days solid

0:10:450:10:47

with eight of us in here just making it habitable.

0:10:470:10:50

There were no windows in this room and upstairs.

0:10:500:10:53

They wanted windows in the back of the property.

0:10:530:10:56

-They wanted a lick of paint around...

-What?!

-Yep!

0:10:560:11:00

Plaster. We plastered that wall there and most of this room.

0:11:000:11:05

-We're going to rip it all down, so it was a waste of money!

-What?

0:11:050:11:10

-Yep.

-You're going to rip it all down?

0:11:100:11:12

Because our plans are to knock those two rooms into one

0:11:120:11:16

and put French doors in, so it was a waste of money.

0:11:160:11:19

How much did it cost to do the work that you had to do for the mortgage?

0:11:190:11:24

About 5,500. That's not all wasted

0:11:240:11:27

because we had to have the electrics done

0:11:270:11:30

and the specialists' report, the damp and dry rot treatment.

0:11:300:11:34

We've probably wasted £1,000 of that.

0:11:340:11:36

Bearing in mind the fact your partner is a carpenter,

0:11:360:11:39

presumably for anybody else, it could have cost a lot more.

0:11:390:11:43

It could have been.

0:11:430:11:44

If we hadn't been in that position with friends in the trade

0:11:440:11:47

and Simon being a carpenter,

0:11:470:11:49

then we would never have done it.

0:11:490:11:51

Now all that's over, the renovation can begin.

0:11:510:11:54

They intend to go up into the loft to gain an extra bedroom.

0:11:540:11:58

On the ground floor, they'll demolish the wall

0:11:580:12:01

between the two sitting rooms.

0:12:010:12:03

How much will it cost to do the works from this point on?

0:12:030:12:06

-What's your budget?

-Our budget was 30,000 including the money

0:12:060:12:11

we've already spent.

0:12:110:12:13

-What kind of timescale?

-Six months.

0:12:130:12:16

A baptism of fire for first-timer Linda, then.

0:12:160:12:19

But she's got Simon and plenty of building friends to lend a hand.

0:12:190:12:23

So, a real cautionary tale, here,

0:12:240:12:28

and an indication of the state of the mortgage market at the moment!

0:12:280:12:32

All that work they had to do, some of which they will take out,

0:12:320:12:35

just to get the mortgage. And you know what?

0:12:350:12:38

If they hadn't done it, they'd have lost their deposit and the money

0:12:380:12:41

they spent sorting it out.

0:12:410:12:43

Blimey! Anyway, having spent that money,

0:12:430:12:46

they now have to get on with restoring the place.

0:12:460:12:48

Is it turning into a money pit before they've even started?

0:12:480:12:51

I like what they're planning.

0:12:510:12:53

Let's see how it progresses later in the show.

0:12:530:12:56

# Getting hung up all day on smiles

0:12:580:13:01

# Walking down Portobello Road for miles... #

0:13:010:13:04

I'm on Portobello Road, famed for its wonderful Saturday market,

0:13:060:13:10

jam-packed with antiques, crafts and tourists.

0:13:100:13:14

The area was developed by the Victorians

0:13:140:13:16

who built beautiful grand squares.

0:13:160:13:18

But anybody visiting in the 1970's

0:13:180:13:20

would have found it an edgy London suburb,

0:13:200:13:23

rough and gritty with an exciting vibe.

0:13:230:13:26

Today, you have to have more than grit to live here -

0:13:260:13:29

you have to have buckets and buckets of cash!

0:13:290:13:32

It was Portobello Road's starring role

0:13:340:13:36

alongside Hugh Grant and Julia Roberts

0:13:360:13:38

in the film Notting Hill that sealed this area's reputation

0:13:380:13:43

as a glamorous and fashionable place to live and hang out.

0:13:430:13:46

The property I'm here to see is something of a gem.

0:13:470:13:50

It's in this row

0:13:500:13:51

of brightly coloured Victorian workmen's cottages

0:13:510:13:54

and it's right on Portobello itself.

0:13:540:13:56

I can't stress enough

0:13:560:13:57

how sought-after and desirable this area is.

0:13:570:14:00

To find a house up for auction is a find indeed.

0:14:000:14:04

Here it is, pretty in pink, and with a stunning guide price to match.

0:14:040:14:09

700,000 for a two-bedroomed mid-terrace!

0:14:090:14:13

I did warn you!

0:14:130:14:15

I'm going to go inside and hope we strike gold.

0:14:150:14:17

Yes, you heard it right. Just two bedrooms for £700,000!

0:14:170:14:22

But this is London and very desirable Notting Hill.

0:14:220:14:27

The good thing is, you've got this entrance lobby here.

0:14:330:14:37

It's always handy to bung your umbrella and dirty boots there.

0:14:370:14:40

But my first impressions are it's really big inside.

0:14:400:14:44

It's certainly quite deceptive.

0:14:440:14:47

You've got wonderful high ceilings.

0:14:470:14:49

There's lots of intricate plasterwork and cornicing.

0:14:490:14:53

I know it's not original to the building.

0:14:530:14:55

I'd get rid of a lot of this. It's far too fussy.

0:14:550:14:59

I think it was probably renovated in the '70s.

0:14:590:15:02

The floors are not bad. If you sanded those up and re-stained them,

0:15:020:15:06

they could look quite nice.

0:15:060:15:07

The wall here has been knocked through to create this double space.

0:15:070:15:12

It does have an old-fashioned feel about it,

0:15:120:15:14

but I quite like this house.

0:15:140:15:17

Maybe it's because I'm a child of the '70s,

0:15:170:15:20

but this house really sparkles for me.

0:15:200:15:23

Unfortunately, not everything in the house is as sparkling -

0:15:230:15:27

namely that kitchen!

0:15:270:15:28

Ooh, now that's a disappointing kitchen.

0:15:280:15:32

Very brown and fern green everywhere.

0:15:320:15:34

Incredibly '70s.

0:15:340:15:37

And look at this. This harks back from that era, too.

0:15:370:15:40

A serving hatch. I love that!

0:15:400:15:42

In the '70s,

0:15:470:15:48

I bet that serving hatch was a great way to pass a fondue set

0:15:480:15:52

from the kitchen downstairs to the dining room upstairs

0:15:520:15:55

for dinner parties.

0:15:550:15:57

But I think this place needs a more modern look now.

0:15:570:16:00

I really see a lovely big extension here,

0:16:010:16:05

with a glass roof and going out onto that bit of outside space,

0:16:050:16:10

to really open this kitchen up.

0:16:100:16:13

I know I'm always going on about valuable outside space in London.

0:16:130:16:16

But this kitchen is just too small.

0:16:160:16:18

It would really benefit from having a big open space here,

0:16:180:16:21

lots of light coming in.

0:16:210:16:23

Imagine, you could entertain friends, have dinner parties.

0:16:230:16:27

This house, in this area, needs a good kitchen.

0:16:270:16:31

Talking of space, the stairwells in this property may look narrow

0:16:310:16:36

but they lead up to two good-sized bedrooms.

0:16:360:16:39

Again, the decor is hardly trendy London,

0:16:390:16:42

and could do with being more contemporary.

0:16:420:16:45

As for that bathroom suite, well, I'm hardly tickled pink!

0:16:450:16:48

But if it's hard to relax in that garish bathroom,

0:16:480:16:51

I've found a chilled-out haven at the top of the house.

0:16:510:16:54

-#

-I climb way up to the top of the stairs

0:16:560:17:02

# And all my cares just drift right into space... #

0:17:020:17:09

It's a lovely sunny day, the market's in full swing,

0:17:120:17:15

you want to escape the hustle and bustle with your newspaper

0:17:150:17:19

and glass of wine.

0:17:190:17:20

Where do you go? That's right, your own private roof terrace, of course!

0:17:200:17:24

Doesn't get much better than this, you know.

0:17:240:17:28

# On the roof it's peaceful

0:17:280:17:31

# As can be... #

0:17:310:17:34

It really does feel peaceful up here.

0:17:340:17:37

Calm, quiet and secret.

0:17:370:17:40

A peek over the railings into next door's yard

0:17:400:17:43

shows that they've already extended the kitchen, so that settles it.

0:17:430:17:47

Since you've got this terrace,

0:17:470:17:49

you could sacrifice that square of garden down there

0:17:490:17:52

but it does mean spending more, and this property is already expensive.

0:17:520:17:57

OK, so 700 guide is a lot of money.

0:17:570:18:00

But would it shock you to hear that properties like this have been known

0:18:000:18:04

to go for double! Yes, that's 1.4 million!

0:18:040:18:07

There's a lot of work to do to bring it up to that standard.

0:18:070:18:11

The financial climate has tightened even the richest Londoners' wallets.

0:18:110:18:15

But this location is second to none.

0:18:150:18:18

I could even say that investing here really is as safe as houses.

0:18:180:18:23

Just to make sure, I asked a local estate agent what he thought

0:18:240:18:29

of the house's potential.

0:18:290:18:31

To realise the highest price in resale,

0:18:330:18:35

you'd probably flip the property completely.

0:18:350:18:38

You'd attempt to get a Mansard conversion,

0:18:380:18:42

ie, add an additional floor,

0:18:420:18:45

Put the kitchen up there, have that gallerying over the reception space

0:18:450:18:49

on the first floor and then get two, possibly three bedrooms out of the

0:18:490:18:54

ground floor accommodation.

0:18:540:18:56

A third bedroom may have its downside, as it would make

0:18:590:19:02

the two existing bedrooms smaller.

0:19:020:19:04

How much could this property be worth, once renovated?

0:19:040:19:08

Resale values are topping out at the moment

0:19:080:19:10

at around 1,300 to £1,350 per square foot.

0:19:100:19:14

Which would bring us up to a resale value of around 1.35 to 1.45,

0:19:140:19:19

assuming we were able to extend.

0:19:190:19:21

That's 1.35 to 1.45 million!

0:19:210:19:27

So if it did sell for around its guide price of 700,000,

0:19:270:19:32

you'd still be quids in, even after

0:19:320:19:34

the several hundred thousand you'd need to spend on renovations.

0:19:340:19:38

Would it be worth considering rental?

0:19:380:19:40

Depending on the specification and the finish,

0:19:410:19:44

we'd take it right up to being worth 1.25 to 1.3 million,

0:19:440:19:48

we'd expect to get 1,250 to 1,300 a week.

0:19:480:19:51

Walk down here on a Saturday

0:19:530:19:54

and you'll find tourists taking pictures of these houses

0:19:540:19:59

and dreaming of the day when maybe

0:19:590:20:01

they would be able to live in such a place.

0:20:010:20:03

This is a lovely home in an exceptional location.

0:20:030:20:07

The guide price is almost irrelevant.

0:20:070:20:09

It's an opportunity as much as it is an investment.

0:20:090:20:13

They don't come along like this very often.

0:20:130:20:16

Let's see who went for it at the auction.

0:20:160:20:18

Bidding was keen for this one. It started at the £700,000 guide price

0:20:200:20:24

and soared upwards in steps of just five grand.

0:20:240:20:29

800. 805.

0:20:290:20:31

810. 815.

0:20:310:20:33

820. 825.

0:20:330:20:36

830.

0:20:360:20:37

835.

0:20:370:20:39

And still the bidding goes on.

0:20:390:20:42

At five grand a time.

0:20:420:20:44

We could be here all day!

0:20:440:20:46

Let's come back later.

0:20:460:20:47

945 in the aisle. 945.

0:20:490:20:52

950.

0:20:520:20:53

950.

0:20:530:20:55

955.

0:20:550:20:57

Make up your mind. If not...

0:20:570:20:59

955.

0:20:590:21:01

960.

0:21:010:21:02

965.

0:21:030:21:05

965.

0:21:070:21:08

970.

0:21:080:21:10

975?

0:21:110:21:12

970 on my left.

0:21:140:21:17

First time. Second time.

0:21:170:21:20

975. 980?

0:21:200:21:22

Yes? 985?

0:21:220:21:24

It's either yes or no. 985.

0:21:240:21:27

980. First time.

0:21:280:21:30

Second time. Third and last time. Have you all done?

0:21:300:21:34

Sold at 980. Well bid. You got there.

0:21:340:21:37

Eventually, the successful bid came from Simon.

0:21:370:21:41

He's local to West London

0:21:410:21:43

and has been in the property business for 20 years,

0:21:430:21:45

building up a portfolio of 15 properties.

0:21:450:21:49

He paid 980,000 for the house,

0:21:500:21:53

a hefty £280,000 over the guide price.

0:21:530:21:56

So he must really have wanted it.

0:21:560:21:59

I met him there to find out why.

0:21:590:22:02

Simon, congratulations. You've got a great house here.

0:22:040:22:07

Why did you want to buy it?

0:22:070:22:09

Thanks, Lucy. It is such a lovely road, Portobello Road.

0:22:090:22:13

It comes up so infrequently.

0:22:130:22:15

And I thought I had to go for it,

0:22:150:22:18

and I did - and here I am!

0:22:180:22:20

You really wanted this, didn't you?

0:22:200:22:23

I did want it, yeah. I felt that there is a profit in here.

0:22:230:22:27

With the right development done

0:22:270:22:30

I think in a couple of years it will make more money. A lot more money.

0:22:300:22:35

Simon is right. This is such a great opportunity in one of London's

0:22:350:22:40

most desirable areas.

0:22:400:22:41

What are his renovation plans to maximise the potential profit here?

0:22:410:22:46

In a nutshell, to build a new bedroom on the roof. A new bathroom.

0:22:490:22:54

Totally refurbish the kitchen, new electrics, new plumbing.

0:22:540:22:58

A new conservatory at the back

0:22:580:23:01

to incorporate the yard area.

0:23:010:23:03

And it will provide a new dining room area and kitchen.

0:23:030:23:06

All very modern.

0:23:060:23:08

I do have to get planning for the roof extension,

0:23:080:23:11

but as there are two or three already existing

0:23:110:23:15

and we have an established use on the roof terrace at the moment,

0:23:150:23:19

I think we'll be lucky and I think we'll get that.

0:23:190:23:22

I think that will provide the key to the profit in this property.

0:23:220:23:26

That extra bedroom.

0:23:260:23:28

But it's quite a lot of expenditure just for one small bedroom.

0:23:280:23:32

It's not going to be that big.

0:23:320:23:33

In my opinion, as a lowly developer,

0:23:330:23:36

I do know what the tenants' requirements are.

0:23:360:23:40

Three bedrooms will make it much more easily lettable.

0:23:400:23:45

It will open that door slightly.

0:23:450:23:49

And to help Simon open that door,

0:23:490:23:52

who better than his trusty builder, Mark,

0:23:520:23:55

but known to many as The Commander!

0:23:550:23:58

So I rendezvoused with him up on the battlements,

0:24:000:24:03

to hear his attack plan!

0:24:030:24:05

Mark, you're not the usual typical builder

0:24:070:24:10

that I meet every day on building sites!

0:24:100:24:12

No, I don't do "usual". I do unusual.

0:24:120:24:15

Would you say this is going to be unusual?

0:24:150:24:18

I've known Simon for 30 years,

0:24:180:24:20

so no, we're going to make some money out of this place.

0:24:200:24:23

-Are you?

-Absolutely.

0:24:230:24:25

Tell me, how will you get a third bedroom in here?

0:24:250:24:28

This roof here will be mansard

0:24:280:24:29

so basically we've got to raise the height of the whole thing

0:24:290:24:33

and put possibly two dormer windows here, a Velux at the front.

0:24:330:24:37

That will allow us to hopefully get the extra bathroom, extra bedroom.

0:24:370:24:42

And then downstairs,

0:24:420:24:46

all the drainage has got to be changed,

0:24:460:24:50

a conservatory, knock through the kitchen,

0:24:500:24:52

possibly rearrange the living room, I don't know. We'll see as we go.

0:24:520:24:56

Tell me, Mark, what would you price this job at?

0:24:560:24:59

The project cost I'd estimate about 64,000.

0:25:000:25:05

-For all of that work?

-Yeah.

0:25:050:25:07

-Yeah.

-Sounds quite cheap to me.

-That's why I'm a busy builder!

0:25:070:25:11

I'd be extremely surprised if all this could be done for 64,000,

0:25:110:25:15

and if they'd even get the planning permission.

0:25:150:25:18

It's a massive job

0:25:180:25:19

and Simon assures me they won't be scrimping on style or quality.

0:25:190:25:24

He's set aside up to £100,000,

0:25:240:25:26

but I wonder how much of that he'll have left?

0:25:260:25:29

Simon and the Commander seem pretty confident

0:25:290:25:32

and hopefully there won't be any nasty surprises

0:25:320:25:35

to cause costs to spiral out of control.

0:25:350:25:38

Talking of surprises,

0:25:380:25:40

I had one for Simon.

0:25:400:25:42

Simon, did you know that you've got access to Ladbroke Square Gardens?

0:25:420:25:47

We have the key to that, do we?

0:25:470:25:48

I'm telling you that with this property you can use the gardens!

0:25:480:25:52

Right. Because I've just had a phone call from Savill's, the auctioneers,

0:25:520:25:56

saying they have another bundle of keys.

0:25:560:25:58

Which I wasn't aware of. I'm going to pick them up.

0:25:580:26:01

That's brilliant news for me!

0:26:010:26:04

-Great! Fantastic!

-How happy are you now?

0:26:040:26:06

I think you've just put 50 grand on the price.

0:26:060:26:09

The reason he's so excited is that Ladbroke Square Gardens

0:26:090:26:13

is one of the largest and most exclusive private gardens in London.

0:26:130:26:17

There's even a tennis court.

0:26:170:26:19

But he will have to pay an annual fee to get a key.

0:26:190:26:22

Even at nearly one million pounds,

0:26:220:26:25

I think Simon has got a great buy.

0:26:250:26:27

He's a confident character, he knows his turf.

0:26:270:26:30

But getting planning permission

0:26:300:26:32

for that third bedroom may not be a dead cert.

0:26:320:26:34

Find out how he gets on later in the show.

0:26:340:26:37

Coming up, this cottage in Newquay was sold at auction in 2005,

0:26:380:26:42

in need of major structural repair.

0:26:420:26:44

Later, we'll show you the amazing finished result.

0:26:440:26:47

Back in London, has that extension caused problems?

0:26:480:26:52

You might upset the neighbours, you might upset the conservation people,

0:26:520:26:56

or upset Fred Bloggs down the road.

0:26:560:26:59

First, we're back in Dorset to see how the buyer of this house

0:27:010:27:04

got on with the renovations.

0:27:040:27:07

We're returning to the beautiful Dorset town of Sherborne

0:27:100:27:14

where Linda paid 141,000 quid for this three-bed end-of-terrace.

0:27:140:27:19

Her partner, Simon, is a carpenter.

0:27:190:27:22

They intended to renovate it, add a loft conversion,

0:27:220:27:25

then either sell or rent it out, depending on the market.

0:27:250:27:28

But to satisfy the mortgage company,

0:27:280:27:30

they had to do a lot of work before they could complete the purchase.

0:27:300:27:34

They wanted windows in the back of the property,

0:27:340:27:37

-they wanted a lick of paint around.

-What?!

-Yep.

0:27:370:27:41

Plaster. We plastered that wall

0:27:410:27:44

there, and most of this room only to rip it all down again!

0:27:440:27:48

Four and a half months later, we're back.

0:27:480:27:51

The main structural work is finished.

0:27:510:27:54

On the ground floor, the wall dividing the two living rooms

0:27:560:27:59

has been removed, creating a large, open space.

0:27:590:28:03

Once decorated, this will be a perfect through room

0:28:030:28:06

leading to the refitted kitchen.

0:28:060:28:08

Outside, I'm afraid they didn't follow my advice

0:28:160:28:19

to keep some storage space.

0:28:190:28:21

Those two sheds were both demolished

0:28:210:28:23

but a lovely courtyard has been created.

0:28:230:28:26

However, I can't see any sign of that loft conversion.

0:28:270:28:30

Did Simon and Linda have a change of plan?

0:28:300:28:33

We decided against the loft.

0:28:360:28:37

We weighed things up and spoke to people about it.

0:28:370:28:40

It was the time it was going to take.

0:28:400:28:43

Add another couple of months on

0:28:430:28:45

to the work for not much financial benefit.

0:28:450:28:49

They had originally planned to do

0:28:490:28:51

the work, including the loft, in about six months.

0:28:510:28:55

So, without that, how long had it taken?

0:28:550:28:57

After we'd sorted it out and paid for it, and the stuff we did

0:28:590:29:03

for the mortgage people, it was about five and a half months.

0:29:030:29:06

-Yeah.

-We thought it would have been quicker,

0:29:060:29:09

but I found the bathroom took me longer than I expected.

0:29:090:29:14

Simon is a skilled carpenter,

0:29:140:29:17

so the doors, skirting boards and stairs were no problem.

0:29:170:29:20

But tiling was a challenge he took on in the kitchen and bathroom.

0:29:200:29:26

This is the bathroom.

0:29:260:29:28

It was probably the hardest room for me to do, really.

0:29:280:29:31

I wanted to create quite a stunning look to it.

0:29:310:29:35

It's the first time I've ever tiled, so it was a bit of an experience!

0:29:350:29:39

We were lucky that the bath suite was on a half-price offer in town.

0:29:390:29:44

We were lucky with that.

0:29:440:29:46

I wanted really clean lines, no knobs or anything on here.

0:29:460:29:49

So we've got touch catches.

0:29:490:29:52

I'm really pleased with it.

0:29:520:29:55

It's everything I thought it was going to be, really.

0:29:550:29:58

I'm not surprised. It's an impressive result

0:29:580:30:01

so now Simon can add tiling to his CV.

0:30:010:30:04

I'm sure plenty of muscle and skip loading was needed to clear

0:30:040:30:08

the sheds in the back yard.

0:30:080:30:10

It's a big transformation out here.

0:30:120:30:14

We've knocked through and put the French doors in

0:30:140:30:17

to let the light through the building and open it up.

0:30:170:30:20

It's a nice sun trap out here,

0:30:200:30:22

so we wanted to knock down the buildings and open it up.

0:30:220:30:26

It's created quite a big space now.

0:30:260:30:29

I'm really, really pleased with this.

0:30:290:30:32

Both Linda and Simon have worked really hard here.

0:30:320:30:35

And got lucky with a bargain on that bathroom suite.

0:30:350:30:38

How much have they had to spend

0:30:380:30:40

on top of the 141,000 they paid on auction day?

0:30:400:30:43

In terms of budget, I think we've spent 26,000, plus legal fees.

0:30:440:30:49

Probably 27,500 all together.

0:30:490:30:52

That brings their total gross outlay to £168,500.

0:30:520:30:57

But will they see any financial return?

0:30:570:31:01

Time for two estate agents to give their expert opinion on the house

0:31:030:31:08

and advise on its current value.

0:31:080:31:11

I think the standard of finish in this property is superb.

0:31:110:31:15

They've paid a lot of attention to detail.

0:31:150:31:17

It's very good quality and you can tell they've spent

0:31:170:31:21

a lot of time and trouble getting it right.

0:31:210:31:24

What I like about this property is they've kept the character features

0:31:240:31:29

within the internal structure,

0:31:290:31:31

so beautiful fireplaces, but put the contemporary kitchen in

0:31:310:31:35

and bathroom, which really complements it nicely.

0:31:350:31:38

Linda and Simon are looking to sell,

0:31:380:31:41

but would consider renting the property short term

0:31:410:31:44

if the resale figures didn't add up.

0:31:440:31:46

So how much rental could they generate?

0:31:460:31:48

I would estimate the rental value of this property

0:31:480:31:52

at £675 per calendar month.

0:31:520:31:54

The value I'd put on this property

0:31:540:31:56

for rental would be about 850 to £900 per calendar month.

0:31:560:32:01

-Crikey! That's good!

-Yeah!

0:32:010:32:03

Not that we're really thinking of renting.

0:32:030:32:06

But it's nice to know.

0:32:060:32:08

Let's see how much the house could achieve if it was put on the market.

0:32:080:32:12

Remember, it's got to be more than 168,500 to see any profit.

0:32:120:32:18

The value I'd put on this property for resale purposes today

0:32:200:32:24

would be round about £250,000.

0:32:240:32:26

I would value this property based on the open market price of £250,000.

0:32:260:32:32

Crikey! If they sold for that,

0:32:320:32:35

they'd see a pre-tax profit of around 81 and a half grand!

0:32:350:32:39

Pleased with that!

0:32:410:32:43

Yeah!

0:32:430:32:44

-That's, um...

-A lot more than we thought.

-Yeah.

0:32:440:32:48

We were expecting 215, 220 maybe.

0:32:480:32:51

-But that's...

-Brilliant.

-..totally different. Yeah.

0:32:510:32:55

-Great.

-Really pleased.

0:32:550:32:57

Sounds like those figures have definitely convinced them to sell.

0:32:580:33:02

So what's the time scale?

0:33:020:33:04

We're going to move in, just for the short term.

0:33:040:33:07

We've got our eye on something else to buy.

0:33:070:33:10

We're waiting for that to come on the market.

0:33:100:33:12

When that does, we'll sell this one

0:33:120:33:16

to buy something in the village where we are.

0:33:160:33:18

So, all's well that ends well.

0:33:180:33:21

It's just a shame they had to do all that extra work to get the mortgage.

0:33:210:33:25

We're now returning to a story we first featured in 2005.

0:33:320:33:37

The beautiful Cornish countryside around Newquay was the location.

0:33:370:33:41

With such stunning views, it was easy to see

0:33:410:33:44

why house prices here had gone up over the years.

0:33:440:33:47

The property I went to see was guided at £80,000.

0:33:470:33:51

Four miles inland of Newquay is the little village of St Newlyn East.

0:33:510:33:56

You'd hope the thing coming up

0:33:560:33:58

for auction was some charming little cottage.

0:33:580:34:01

It is!

0:34:010:34:02

Just imagine what this could look like

0:34:040:34:07

with a bit of attention and better weather.

0:34:070:34:09

Add a few rambling roses

0:34:090:34:12

and you've got yourself a really cute cottage,

0:34:120:34:15

all for a guide price of £80,000.

0:34:150:34:18

As soon as you come in the front door, you realise this is not an

0:34:220:34:25

average end-of-terrace property.

0:34:250:34:27

For a start, you've got that entrance there and then...

0:34:270:34:30

..this room on the right...

0:34:320:34:34

..and this room on the left.

0:34:360:34:38

I get the impression that's setting the scene

0:34:380:34:41

for some interesting stuff here.

0:34:410:34:43

And interesting it certainly is.

0:34:450:34:47

You've got two parallel rooms at the front of the house

0:34:470:34:50

that lead into a corridor and then through to two rooms at the back.

0:34:500:34:54

In this study, there's a great-looking fireplace

0:34:540:34:58

and the kitchen looks out to the garden.

0:34:580:35:00

But I'm concerned about all these cracks.

0:35:000:35:04

Well, it was all going fine

0:35:040:35:07

and then I came into the rear of the property and I saw this.

0:35:070:35:11

At first glance I thought this was just really bad Artex

0:35:110:35:15

or some funky wall covering.

0:35:150:35:16

But it's not.

0:35:160:35:18

In fact, it's very, very serious.

0:35:180:35:21

I reckon if I...

0:35:210:35:23

..take that off...

0:35:270:35:28

I hope the new owner doesn't mind!

0:35:280:35:31

Um... See this?

0:35:310:35:33

This building is made from stuff called mundic block.

0:35:340:35:37

It's very prevalent around these parts, in Cornwall especially.

0:35:370:35:41

What they did is they used concrete for the construction.

0:35:410:35:45

But that concrete contained bits and pieces from the mines.

0:35:450:35:51

The result is that, over the years,

0:35:510:35:53

it deteriorates.

0:35:530:35:55

It basically means the whole of the rear of this property

0:35:550:35:59

is likely to fall to pieces, as you can see.

0:35:590:36:01

The serious effects of that - other than the obvious -

0:36:010:36:04

are you can't get a mortgage on this property.

0:36:040:36:07

Not good news.

0:36:090:36:10

It appears that this sweet cottage is becoming very bitter indeed

0:36:130:36:18

and means that whoever buys it will have to use cash.

0:36:180:36:21

There's little chance of getting a loan on this property.

0:36:210:36:24

Upstairs, though, there are four good-sized bedrooms

0:36:250:36:29

in need of modernisation,

0:36:290:36:31

a small shower room and a toilet on the landing

0:36:310:36:34

and, of course, more cracks.

0:36:340:36:37

At the rear of the property there's a good-sized plot of land

0:36:370:36:41

but look at that.

0:36:410:36:42

You can really see the problems with this house.

0:36:420:36:45

It's almost a text book of things that can go wrong with property.

0:36:450:36:49

Those cracks go all the way through. The whole rear is mundic block.

0:36:490:36:53

It's a nightmare. The only thing to do is take the whole thing down.

0:36:530:36:58

Demolish the whole of that rear.

0:36:580:37:00

The good news is what you might build in its place.

0:37:000:37:03

If you look next door, they've put a dormer window on the rear there

0:37:030:37:08

and that's where the view is, so it's a nice thing to do.

0:37:080:37:11

Great news is you've got the option

0:37:110:37:13

to do that because it's an existing structure.

0:37:130:37:16

Planners will say "Go ahead."

0:37:160:37:17

I think that any buyer interested

0:37:170:37:19

in maximising their potential from this rotten lot

0:37:190:37:23

should invest their money into creating two cottages, not one.

0:37:230:37:26

They'll need to keep those bill costs to a minimum.

0:37:260:37:30

Even given the fact that half this property will have to be demolished,

0:37:300:37:35

I still really like it.

0:37:350:37:38

I believe it's a good investment and somebody can make money from it.

0:37:380:37:42

So let's go to the auction.

0:37:420:37:44

It's going to make £100,000.

0:37:510:37:54

100. 110.

0:37:540:37:57

120.

0:37:570:37:59

120 I've got. 125. 125,500.

0:37:590:38:03

126. And a half.

0:38:030:38:05

27.

0:38:050:38:07

And a half. 127,500 I've got against you, sir.

0:38:070:38:11

128... Sorry, what have we got?

0:38:110:38:13

Here. That's 128. Asking for 128 and a half, sir.

0:38:130:38:16

128 and a half. 129, do I?

0:38:160:38:19

At 128,500 I've got. Is there nine?

0:38:190:38:23

129.

0:38:230:38:24

129.

0:38:240:38:26

29 and a half.

0:38:260:38:28

130? At 130.

0:38:280:38:30

135? 135. 135. Thank you.

0:38:300:38:32

135. 140. I've got at 140.

0:38:320:38:35

At 140. At 140. 141.

0:38:350:38:37

At 141. 141. Do I see two?

0:38:370:38:41

142. 142.

0:38:410:38:42

142 and a half. 142 and a half.

0:38:420:38:44

At 142 and a half. At 142,500.

0:38:440:38:47

Now we go. Front row. 142 and a half.

0:38:470:38:50

143? 143.

0:38:500:38:52

44? Yes?

0:38:530:38:55

Half. 143 and a half.

0:38:550:38:58

144. 144.

0:38:580:39:00

At 144. 145.

0:39:000:39:02

At 145. At 145.

0:39:020:39:04

At 145 this time out.

0:39:040:39:07

At 145 first time. Second time. Third and last time. 145.

0:39:070:39:11

Congratulations, sir. Well done.

0:39:110:39:13

The final bid at £145,000 is well over the guide price of 80.

0:39:130:39:19

Paying that amount are building partners and brothers,

0:39:190:39:22

David and Mark. They've both been in the building industry for many years

0:39:220:39:27

and felt it was time to start on their own.

0:39:270:39:29

This is the second acquisition for their property developing company.

0:39:290:39:33

David, very nice to meet you.

0:39:330:39:35

-You too.

-And Mark.

-Hi.

-Nice to meet you.

0:39:350:39:38

What was it about this property

0:39:380:39:39

that you thought for your second venture was right?

0:39:390:39:42

When I saw it in the paper and I came to see it,

0:39:420:39:45

I thought it was an extremely pretty cottage.

0:39:450:39:48

On the front. It was a liquorice allsorts cottage. Fabulous.

0:39:480:39:53

With the big lump on the back,

0:39:530:39:56

it being mundic block, it puts a lot of people off.

0:39:560:39:59

It's a lot of work. You have to demolish it and rebuild.

0:39:590:40:02

So it's a big project to take on if you were just a homeowner.

0:40:020:40:07

You can't move in and do it around you. So that took a lot of people

0:40:070:40:11

out of the equation.

0:40:110:40:12

-You knew about the mundic block problem?

-Sure.

0:40:120:40:15

The mundic block doesn't really matter. You can't sort it anyhow.

0:40:150:40:20

The fact it is mundic block puts a lot of people off.

0:40:200:40:24

That's a sort of benefit there anyhow. That helps, basically.

0:40:240:40:29

It helps.

0:40:290:40:31

Not only does the crumbling mundic block not put David and Mark off,

0:40:310:40:36

it's one of the main reasons they went for it.

0:40:360:40:38

So what have they got planned for this shaky little cottage?

0:40:380:40:42

Best case scenario which we wouldn't envisage having any problems with

0:40:420:40:46

is getting planning for a pair of cottages -

0:40:460:40:49

the original Cornish stone-built one at the front here,

0:40:490:40:53

two beds, bathroom, lovely pretty little one,

0:40:530:40:56

and possibly a three-bed new cottage at the rear.

0:40:560:41:00

Well, two properties are better than one,

0:41:000:41:04

and the brothers have given themselves a budget of £100,000

0:41:040:41:07

for the work.

0:41:070:41:09

They don't want to waste any time and have already had plans drawn up.

0:41:090:41:13

These are literally hot off the presses!

0:41:150:41:17

Yeah, I picked them up this morning.

0:41:170:41:19

Talk me through them, then.

0:41:190:41:22

Well, this first one, we basically keep the original cottage

0:41:220:41:27

with a porch area coming out there.

0:41:270:41:30

We've got a lounge, staircase in the middle and kitchen.

0:41:300:41:34

Upstairs a double bedroom and a single bedroom

0:41:340:41:36

and we'd give a floating freehold across the new build,

0:41:360:41:40

which will be the new build,

0:41:400:41:42

and we add a bathroom on the first floor of the new build.

0:41:420:41:45

Because the back one becomes what you'd call an upside-down house.

0:41:450:41:49

You've got the bedrooms downstairs in this one.

0:41:490:41:52

And the bathroom underneath the bathroom of this house.

0:41:520:41:55

Then we have the lounge and kitchen

0:41:550:41:57

upstairs because of the views across the fields.

0:41:570:42:00

You can see the sea from the back, so that's very nice.

0:42:000:42:03

What we haven't got a plan for yet is we want planning

0:42:030:42:06

for a third bedroom in the loft, with a dormer.

0:42:060:42:09

So this back one becomes a three-bed unit.

0:42:090:42:11

Any idea of time, how long this is going to take?

0:42:110:42:14

Probably about six months, I'd say.

0:42:140:42:17

Really? To completely finish it?

0:42:170:42:20

If we don't keep going in the pub next door!

0:42:200:42:22

About six months, yeah.

0:42:220:42:24

Well, the plans looked great but the timescale was ambitious.

0:42:240:42:29

So when we first returned to check on progress after five months,

0:42:290:42:33

it was no real surprise that the main difference was that half of it

0:42:330:42:37

had been demolished

0:42:370:42:38

and that only the groundwork for the new house had begun.

0:42:380:42:42

But stay with us till later and you'll see the fabulous finished

0:42:440:42:49

development three years on.

0:42:490:42:50

"Time is money" is a much overused expression, but you know, it's true!

0:42:530:42:58

If your project runs over schedule,

0:42:580:43:01

you can bet your bank balance will take a hit.

0:43:010:43:03

Let's find out how today's purchasers have been getting on.

0:43:030:43:07

We're back in stylish upmarket Notting Hill,

0:43:110:43:15

specifically, the world-famous Portobello Road.

0:43:150:43:18

Developer Simon bought this two-bedroomed house for 980,000.

0:43:210:43:26

He had grand plans to build a third bedroom on the top

0:43:260:43:29

and extend into that yard space.

0:43:290:43:32

He was confident he could walk away

0:43:320:43:34

with a great return on his investment.

0:43:340:43:38

I think that will provide the key to the profit in this property,

0:43:380:43:41

the extra bedroom.

0:43:410:43:42

We caught up with Simon five months later

0:43:420:43:45

to see how the project had gone.

0:43:450:43:47

Curiously, he had not done any work at all.

0:43:470:43:51

# It's the same

0:43:510:43:53

# It's the same

0:43:540:43:56

# It's the same... #

0:43:570:43:59

In fact,

0:43:590:44:00

Simon had a change of plan.

0:44:000:44:02

He decided to take advantage of improving property prices

0:44:020:44:06

and put the house back on the market with a local estate agent.

0:44:060:44:10

I obviously sold the property on without doing any works.

0:44:100:44:14

Which was not my original intention,

0:44:140:44:17

but I was, er, pressurised, if you like,

0:44:170:44:22

by the offer that came forward.

0:44:220:44:25

As the property has the kudos of being on Portobello Road,

0:44:250:44:28

more than 30 people phoned up about it.

0:44:280:44:31

One offer was just too good to refuse.

0:44:310:44:34

I did, in fact, receive an offer which I accepted of 1,250,000,

0:44:380:44:44

which was certainly a tremendous profit on my original purchase price

0:44:440:44:49

at auction, 980,000.

0:44:490:44:51

Simon judged the market perfectly.

0:44:510:44:55

His resale made just over 25% pre-tax profit,

0:44:550:45:00

minus any legal fees, of course.

0:45:000:45:02

Although he could probably have made more if he'd done the alterations,

0:45:020:45:06

Simon feels he may have saved himself a headache

0:45:060:45:09

with the planners.

0:45:090:45:10

There is always a risk when you apply for planning

0:45:100:45:13

that you won't get it.

0:45:130:45:15

You might upset the neighbours, you might upset the conservation people,

0:45:150:45:18

or Fred Bloggs down the road, I don't know who you can upset.

0:45:180:45:22

So by selling it on as I had,

0:45:220:45:25

I definitely risked my exposure to the planners

0:45:250:45:29

and I also saved myself the expense of going through the motions

0:45:290:45:33

of the planning application

0:45:330:45:35

and I think it was the right decision for me, at the time.

0:45:350:45:40

It sounds like Simon made a shrewd decision.

0:45:400:45:43

Planning permission could have proved much trickier

0:45:430:45:46

than he'd first hoped.

0:45:460:45:47

He fears the work could have cost 150,000,

0:45:470:45:49

50,000 over his original budget.

0:45:490:45:51

Instead, he's managed to make a fantastic pre-tax profit

0:45:510:45:56

of £280,000 in just five months.

0:45:560:46:00

Only in Notting Hill!

0:46:000:46:01

So what do two property experts make of that 1.25 million resale price?

0:46:010:46:07

Coming in for the first time, it's a lovely house.

0:46:070:46:10

In terms of the area, it's very much what people want.

0:46:100:46:13

There's a huge short supply.

0:46:130:46:16

There's lots of lovely period features

0:46:160:46:18

and that lovely cottage feel.

0:46:180:46:20

Although no renovation work was done here,

0:46:220:46:24

how has the value been affected by an improving property market?

0:46:240:46:28

Demand has really picked up from overseas buyers.

0:46:310:46:34

There's a real shortage of stock.

0:46:340:46:36

That's had a positive impact on prices recently.

0:46:360:46:39

The market has improved certainly over the last four or five months.

0:46:400:46:45

There's still a bit of caution out there.

0:46:450:46:48

People think we're through the worst of the troubles

0:46:480:46:51

and are prepared to commit.

0:46:510:46:52

With that healthier market in mind,

0:46:520:46:55

what do they think this property is worth?

0:46:550:46:57

We'd be looking to achieve around 1.2 million.

0:47:010:47:03

In this condition,

0:47:030:47:04

I'd put this property on the market at 1.25 million.

0:47:040:47:07

To hear that news is very good, very satisfying.

0:47:070:47:10

I didn't undersell it. It's exactly the right price.

0:47:100:47:12

So great news. Really pleased.

0:47:120:47:15

Even though Simon could have made more money had he held onto it

0:47:160:47:20

and done the work,

0:47:200:47:21

he has no regrets about selling it sooner rather than later.

0:47:210:47:24

You can always look forward in two years and say,

0:47:270:47:30

"I've sold it too cheap",

0:47:300:47:31

which you will because property prices will go up,

0:47:310:47:35

but at the time I think I made the right decision.

0:47:350:47:39

I've obviously sold it for the right price.

0:47:390:47:41

I've taken my profit, I've moved on

0:47:410:47:44

and I'm off onto a new project.

0:47:440:47:47

All very exciting for me.

0:47:470:47:49

When we first visited

0:47:550:47:57

this delightful four-bed Cornish property just outside Newquay,

0:47:570:48:01

brothers David and Mark had just bought it for 145,000.

0:48:010:48:05

They're both builders and planned to convert it into two separate houses.

0:48:050:48:10

But behind that quaint exterior

0:48:120:48:15

lay a disaster.

0:48:150:48:17

The rear of the property was an extension built of mundic block,

0:48:170:48:21

which was crumbling away.

0:48:210:48:23

So they planned to knock it down and rebuild.

0:48:230:48:26

When we first returned four months later, the demolition had begun.

0:48:280:48:33

Where originally two cottages had stood, only half of one remained,

0:48:330:48:37

plus a large hole.

0:48:370:48:39

The brothers had successfully obtained planning permission

0:48:390:48:42

for the new building and groundwork had begun.

0:48:420:48:45

David and Mark had spent 145,000 on auction day

0:48:480:48:52

and had a budget of £100,000 for the new build and renovation.

0:48:520:48:56

But were they sticking to that? How much had they spent so far?

0:48:580:49:01

Pretty bang on with what we expected to spend to get out the ground.

0:49:030:49:07

When we get out of the ground.

0:49:070:49:09

The demolition, the planning and the architect's fees.

0:49:090:49:14

There's always extras in any project like this. The unforeseen.

0:49:140:49:17

If we get within £10,000 either way

0:49:170:49:19

of our original estimate, which is about £100,000,

0:49:190:49:23

then we'll be extremely happy.

0:49:230:49:25

And it's looking at the moment that we'll do that.

0:49:250:49:28

I hope so, because David and Mark

0:49:290:49:31

had completely knocked the innards out of the cottage

0:49:310:49:34

and only the groundwork had begun on the new build.

0:49:340:49:37

Three years later, we went back to see the two houses.

0:49:400:49:44

Both of them were completed and sold a couple of years ago.

0:49:450:49:49

Through that new porch

0:49:500:49:52

into the original cottage to the left of the stairs,

0:49:520:49:55

there's a wonderful new living room.

0:49:550:49:57

Every little bit of space has been used.

0:49:570:50:00

On the other side of the staircase, a superb kitchen has been created.

0:50:010:50:05

The old cottage looks fantastic. What a transformation!

0:50:050:50:08

Upstairs you'll find the new bathroom which has been built

0:50:120:50:16

in the new property above the bathroom on the ground floor.

0:50:160:50:19

Once again, the original front cottage has a cottage

0:50:210:50:24

attached to the back.

0:50:240:50:25

Unfortunately, we can't get inside today, but as originally planned,

0:50:250:50:29

that has two bedrooms and the bathroom on the ground floor

0:50:290:50:32

with a living room and kitchen upstairs.

0:50:320:50:35

And it's a three-bed house,

0:50:350:50:37

because the planners agreed to an extra bedroom in the attic.

0:50:370:50:40

However, attaching it to the original cottage wasn't easy.

0:50:400:50:45

We had quite a bit of difficulty

0:50:450:50:46

joining the new build to the old build

0:50:460:50:49

because it was all the mundic block

0:50:490:50:50

when we knocked it down and we had cob.

0:50:500:50:54

So we built two concrete stanchions

0:50:540:50:56

and more or less put a concrete ring beam around the whole cottage,

0:50:560:50:59

enabling us to join the new house onto the back.

0:50:590:51:01

And we got a nice bit of slate on the front.

0:51:010:51:05

It's a quite pretty little house in the end. Couple of dormers

0:51:050:51:09

at the top. Very pleased with it.

0:51:090:51:11

David and his brother Mark sold both houses to local people.

0:51:110:51:14

There's a professional couple in the new build,

0:51:140:51:17

while the cottage with its bathroom and two bedrooms upstairs

0:51:170:51:20

is now home to Sue, a matron at the local hospice.

0:51:200:51:23

And there must be something about the place

0:51:260:51:28

because David's moved down here.

0:51:280:51:30

He's renting another house in the village. What about his brother?

0:51:300:51:34

My brother, Mark, we bought an old cafe in London

0:51:340:51:39

which we got planning permission to turn into two flats.

0:51:390:51:42

He's working on that at the moment.

0:51:420:51:44

As well as that property in London,

0:51:450:51:48

they also have a three-bed bungalow nearby to renovate as well.

0:51:480:51:52

But have there been any problems with this one?

0:51:520:51:54

There's been a lot of soundproofing problems between the two bathrooms.

0:51:550:51:59

Just for the bathroom floor alone it was £500 just to soundproof it.

0:51:590:52:03

There were extra costs which I didn't realise. But overall,

0:52:030:52:07

it was a pretty standard build with added extras,

0:52:070:52:09

but pretty good in the end.

0:52:090:52:11

The brothers paid 145,000 on auction day for the cottage

0:52:130:52:16

and had budgeted £100,000 for the work.

0:52:160:52:19

They initially sold the cottage for 190,000

0:52:190:52:23

and then six months later the new house achieved 215,000.

0:52:230:52:27

So there could be a very impressive £160,000 gross profit

0:52:270:52:32

if they managed to keep to the budget.

0:52:320:52:34

The initial budget was about 100.

0:52:350:52:37

We went over that by probably I'd say 25%

0:52:370:52:44

because of all the extras that were unforeseen.

0:52:440:52:47

The flooring soundproofing between the two houses was expensive

0:52:470:52:51

and the stanchions and stuff.

0:52:510:52:53

It was quite an awkward site to work on. Not a lot of area.

0:52:530:52:56

£135,000 gross profit before the usual expenses

0:52:570:53:02

didn't sound too bad.

0:53:020:53:04

Sue's very pleased she bought the cottage. It's a wonderful new home.

0:53:040:53:08

Really, it was the minute I walked into it.

0:53:100:53:13

It had such a lovely atmosphere about it

0:53:130:53:17

and it was perfect for me, being on my own at the time.

0:53:170:53:20

I didn't want a big garden or anything.

0:53:200:53:25

It was perfect to move straight in. Didn't have to do anything.

0:53:250:53:28

What do two estate agents think of the refurbished cottage

0:53:310:53:34

with its bathroom built on the first floor of the new house.

0:53:340:53:38

They've done a really good job. It has the outside facade of a cottage

0:53:390:53:43

with the benefits of a new house.

0:53:430:53:45

Given the original project, he's done a very good job.

0:53:450:53:48

Super property. Not very large, but it has everything you want.

0:53:480:53:53

The whole thing is reasonably compact, but that does no harm.

0:53:530:53:56

It just dictates what the purchaser wants at the end of the day.

0:53:560:54:01

Quite close to the beaches, quite central to the A30.

0:54:010:54:05

Newquay airport quite close by.

0:54:050:54:07

It could be a second home, or someone looking for an investment

0:54:070:54:10

on a rental basis.

0:54:100:54:11

The cottage has the thumbs up from the estate agents.

0:54:110:54:15

But it's looking like there could be a change of occupant.

0:54:150:54:19

Having been here for 19 months, it's time for me to move on.

0:54:190:54:23

But I'd like to keep this place and let it out.

0:54:230:54:26

So how much rent could the cottage earn?

0:54:260:54:29

In the rental market,

0:54:310:54:32

we'd be looking at 550 to 600 per calendar month.

0:54:320:54:36

Rental would be very popular for this

0:54:360:54:38

as an alternative to an apartment in Newquay.

0:54:380:54:41

£650 a month quite comfortably for this one.

0:54:410:54:45

Was that the sort of income Sue expected, and who does she think

0:54:450:54:48

the cottage will appeal to?

0:54:480:54:50

I guess that would be about what I would think it would be worth.

0:54:500:54:54

I think this would suit a young professional couple.

0:54:540:54:58

It would be perfect for that.

0:54:580:55:00

How much are the properties now worth? David sold them in 2007,

0:55:000:55:05

just before the property crunch took hold, for 190,000

0:55:050:55:09

and then the three-bed house for 215,000.

0:55:090:55:13

I would suggest this is probably worth about 150 to 155.

0:55:130:55:18

I'd market it at 159,950.

0:55:180:55:21

If I was bringing this property to the market today,

0:55:210:55:24

I'd imagine 165 to 170.

0:55:240:55:26

The house at the rear, three bedrooms and the outside space,

0:55:260:55:30

I'd say a guide price of 200.

0:55:300:55:33

I haven't actually seen the inside of next door,

0:55:330:55:35

but assuming it's finished to the same standard,

0:55:350:55:38

I'd expect that one to achieve something in the region of 185, 190.

0:55:380:55:43

Property prices are recovering,

0:55:450:55:47

but 165 to 170 for the front cottage

0:55:470:55:50

is still 20 to £25,000 less than David sold it for two years ago.

0:55:500:55:55

I think you'll get more for it than 170, even today.

0:55:560:55:59

It's a one-off cottage.

0:55:590:56:01

If someone wants that, they'll pay a bit more cos it's a premium thing.

0:56:010:56:05

There aren't that many about. It's worth its money.

0:56:050:56:08

And that valuation of between 185 and 200 for the new house?

0:56:080:56:13

I would say that would be round about right as the market is today.

0:56:130:56:18

That wouldn't be far off. But I'd say more for the front one.

0:56:180:56:21

So David's moved down to Cornwall.

0:56:210:56:23

Is he going to spend more time on the beach

0:56:230:56:25

or is he on the look-out for property opportunities?

0:56:250:56:29

Yeah, I'll carry on building. I've done it all my life, so I enjoy it.

0:56:290:56:34

It's something I enjoy

0:56:340:56:36

and I'm beginning to enjoy

0:56:360:56:38

the design part of it more now than the build.

0:56:380:56:41

I'm trying to put a bit of that into it as well.

0:56:410:56:45

It goes to show, you never know

0:56:480:56:50

the stories you're going to hear on Homes Under The Hammer.

0:56:500:56:53

So join us next time for tales of subsidence and success!

0:56:530:56:57

-See you then.

-Bye!

-Goodbye!

0:56:570:56:59

Subtitles by Red Bee Media Ltd

0:57:200:57:23

Martin Roberts and Lucy Alexander visit a house in Dorset that's full of surprises, a property on Portobello Road in London and a cottage in Newquay.

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