0:00:02 > 0:00:06Hello. Buying your first home is a moment you will remember for ever.
0:00:06 > 0:00:09Whether it's your first purchase or your 50th,
0:00:09 > 0:00:13buying at auction is an incredibly exciting experience.
0:00:13 > 0:00:18There are lots of heart-stopping moments when you buy your home under the hammer.
0:00:43 > 0:00:49Now, appearances can be deceptive and auction properties can be difficult to read.
0:00:49 > 0:00:55Yes, the house may appear to just need a quick makeover when really drastic surgery is needed.
0:00:55 > 0:01:01So did today's properties require a bit of filler in the cracks or a full renovation job?
0:01:02 > 0:01:07'On a plot of land in Wiltshire, the the sewer is causing a real stink.'
0:01:07 > 0:01:12Just shifting it two or three metres means putting a whole new pipe in.
0:01:12 > 0:01:16'I'm at a Victorian house in Herne Hill, London,
0:01:16 > 0:01:22'where the plumbing is not exactly up to today's standards.' It's like an en-suite for both floors.
0:01:22 > 0:01:29'And we go back to this old Gospel Hall in Devon. Six years ago, it was bought at auction.
0:01:29 > 0:01:32'Catch up with it now to admire its dramatic transformation.
0:01:34 > 0:01:41'All these properties were sold at auction. We see who bought them when they went under the hammer.'
0:01:44 > 0:01:49This is Corsham, a gorgeous little medieval town halfway between Bath
0:01:49 > 0:01:52and Chippenham in north-west Wiltshire.
0:01:52 > 0:01:58It was famous as the centre of the wool industry here and as the place where they quarried Bath Stone,
0:01:58 > 0:02:01hence it is a gorgeous little spot.
0:02:02 > 0:02:09It's also a very desirable location just off the M4 and within easy commuting distance of Bath.
0:02:09 > 0:02:15Hopefully, there's no chance a property here would pull the wool over my eyes.
0:02:18 > 0:02:24So, when a plot of land came up for auction just five minutes' drive from that high street,
0:02:24 > 0:02:27it generated a lot of interest.
0:02:27 > 0:02:31So what is it? Well, it's somebody selling off a bit of their garden,
0:02:31 > 0:02:36but it's a good-sized plot, it's fairly flat, the guide price was £45,000.
0:02:36 > 0:02:42But the key was it had planning permission for the building of a two-bedroom, detached house.
0:02:42 > 0:02:45Sounds good so far. Let's take a look.
0:02:45 > 0:02:51And this is it, a good-sized plot of land. Right now, it's basically a luscious lawn.
0:02:51 > 0:02:56When you're considering plots of land, there are things you need to take into consideration.
0:02:56 > 0:03:01Ideally, we want something flat, so that's what this plot of land is.
0:03:01 > 0:03:07And I noticed that the kerb outside there giving us our access into the plot which is really important
0:03:07 > 0:03:11has already been lowered. That will save you a lot of time and expense.
0:03:11 > 0:03:15Probably between £800 and £1,500 to get that done, but it's been done.
0:03:15 > 0:03:20What else have we got? Flat - that will save you money in terms of earth moving.
0:03:20 > 0:03:24You can see the house that has sold off this plot of land.
0:03:24 > 0:03:28If this is similar to your garden, maybe you could consider it.
0:03:28 > 0:03:34They've put these two pegs in here which indicate that this is the plot of land to be sold off.
0:03:34 > 0:03:38If this was just a garden, it would probably be worth £2,000.
0:03:38 > 0:03:44The key to this is it has got that planning permission and that's why it's got the £45,000 guide price.
0:03:44 > 0:03:46It's a good start.
0:03:46 > 0:03:49# Give me land, lots of land
0:03:49 > 0:03:52# Under starry skies above
0:03:53 > 0:03:55# Don't fence me in... #
0:03:55 > 0:03:59Being so close to other houses isn't necessarily a bad thing.
0:03:59 > 0:04:05It means that main services like gas and water should be nearby and easy to tap into.
0:04:05 > 0:04:12The plot comes complete with plans drawn up on behalf of the vendors and approved by the council.
0:04:12 > 0:04:15# Don't fence me in... #
0:04:15 > 0:04:19These are the plans and I think they're quite good.
0:04:19 > 0:04:25They're making the most of a small plot, but the build is in character with the local buildings here.
0:04:25 > 0:04:29Two bedrooms upstairs, kitchen, living room downstairs.
0:04:29 > 0:04:35However, there is one thing which screams out at me for these plans which a lot of people forget about
0:04:35 > 0:04:40and yet it's a major problem or a major expense. And that is...
0:04:40 > 0:04:44Here is the existing foul sewer which runs across the plot.
0:04:44 > 0:04:50You're not allowed to build the foundations for this within a certain distance of the sewer,
0:04:50 > 0:04:53so you'll have to move the sewer.
0:04:53 > 0:04:57To move a sewer is not an easy job. It's certainly not a pleasant job.
0:04:57 > 0:05:01You'll have to get the sewage people in to do it, it will be expensive
0:05:01 > 0:05:05and even just shifting it probably two or three metres
0:05:05 > 0:05:08means digging a new trench, putting a new pipe in,
0:05:08 > 0:05:14and I reckon you're going to be looking at something like £5,000 to £7,000 just to do that.
0:05:14 > 0:05:17If you're not expecting it, that could catch you out.
0:05:17 > 0:05:21Moving that sewer could be a real stinker of a job.
0:05:22 > 0:05:27But as long as the buyer spots it and factors it into the calculations,
0:05:27 > 0:05:30everything should come up smelling of roses.
0:05:30 > 0:05:34I asked along a local estate agent to see what he thought.
0:05:36 > 0:05:39The plans are for a two-bedroomed house.
0:05:39 > 0:05:43You couldn't get anything bigger certainly on the plot.
0:05:43 > 0:05:47There is maybe potential to make it two one-bedroom flats,
0:05:47 > 0:05:51but the problem there is whether you can get enough parking for the site.
0:05:51 > 0:05:55What does he think the rental possibilities are for this house?
0:05:55 > 0:05:57It is a good rental area.
0:05:57 > 0:06:03People who can't afford the prices in Bath will step out of Bath and just be nearby in Corsham.
0:06:03 > 0:06:09I imagine you would achieve something in the region of £550 to £575 per month.
0:06:10 > 0:06:13What if the buyer was to sell on?
0:06:13 > 0:06:16For a two-bedroomed house in this location,
0:06:16 > 0:06:22we would anticipate you would get something in the region of £140,000 to £145,000 for resale value.
0:06:23 > 0:06:30With the guide price of 45,000 and the cost of building a two-bedroomed house around 60,000,
0:06:30 > 0:06:35that's potentially a really good return. Not bad for a patch of grass!
0:06:35 > 0:06:39Well, as plots of land go, I think this is a really good one.
0:06:39 > 0:06:45It's got planning permission and little extras such as the lowering of the kerb stones here.
0:06:45 > 0:06:49A few issues with the sewer, but all in all, for a £45,000 guide price,
0:06:49 > 0:06:52I'm sure it was a popular lot at the auction.
0:06:52 > 0:06:56Lot 1, the building plot at the rear of 28, Charles Street, Corsham.
0:06:56 > 0:06:59£30,000. 32? At £32,000.
0:06:59 > 0:07:0134? 34.
0:07:01 > 0:07:0336? At 36. 38 may I say?
0:07:03 > 0:07:06At 38. Now 40 I'll take?
0:07:06 > 0:07:09At £38,000. 40 I'll take? At £38,000.
0:07:09 > 0:07:14Against you on the telephone. 40? 40 I've got. At £40,000.
0:07:14 > 0:07:17Round the corner. I'll take 1? At £40,000. 41?
0:07:17 > 0:07:2041. 42...?
0:07:20 > 0:07:23Yeah, 42. £42,000 on the wall.
0:07:23 > 0:07:26At £42,000. 43, thank you very much.
0:07:26 > 0:07:3044 now may I say? At £43,000 sat down.
0:07:30 > 0:07:3244? 44. 45 to you, sir?
0:07:32 > 0:07:35At £44,000. 45 to you?
0:07:35 > 0:07:3745. 46, Anthony?
0:07:38 > 0:07:40No.
0:07:40 > 0:07:43And a half...?
0:07:43 > 0:07:47At £45,000. Your bid, sat down, at £45,000. Anybody else want a go?
0:07:47 > 0:07:52I'll take 500, please, if you will? Otherwise, it's £45,000 for the first time.
0:07:52 > 0:07:54£45,000 for the second time...
0:07:54 > 0:07:5745,500. I knew he would somehow!
0:07:57 > 0:08:0146 to you, sir. 46,500 now, if you like?
0:08:02 > 0:08:06No. At £46,000, back to where you were. Keep smiling.
0:08:06 > 0:08:08At £46,000. 5 I'll take?
0:08:08 > 0:08:12Otherwise, it's £46,000 for the first time... I mean it this time.
0:08:12 > 0:08:16£46,000 for the second time... £46,000, third and last time...
0:08:16 > 0:08:18One more, yes or no...? No.
0:08:18 > 0:08:21Your number, sir, is...?
0:08:21 > 0:08:26'Auction first-timer Sergio made the winning bid of 46,000.
0:08:26 > 0:08:32'Sergio is from Costa Rica and he and his Malaysian wife Jan and their son Aslam only moved
0:08:32 > 0:08:35'to the UK just over six months ago.
0:08:35 > 0:08:40'I met up with Sergio to find out his plans for this plot.'
0:08:40 > 0:08:44- Sergio, nice to meet you.- Nice to meet you.- Congratulations.- Thank you.
0:08:44 > 0:08:50- Why did you want to buy this plot of land in Corsham?- I'm going to build a two-bedroom house here for sale.
0:08:50 > 0:08:55I'm not going to keep it or rent it. I'm planning to sell it when it's finished.
0:08:55 > 0:08:58OK. Do you have much experience in building?
0:08:58 > 0:09:02I arrived in the UK last year from my home country Costa Rica.
0:09:02 > 0:09:04Costa Rica? Oh, beautiful country!
0:09:04 > 0:09:07I build five houses there.
0:09:07 > 0:09:11'Although he has built five houses in Costa Rica,
0:09:11 > 0:09:17'Sergio actually works as a finance manager in nearby Swindon and travels the world with his job.
0:09:17 > 0:09:23'So I wondered why he and his family had chosen to settle down in the UK?'
0:09:23 > 0:09:28When I was working in Malaysia, I met my wife. We agreed to go to Costa Rica first,
0:09:28 > 0:09:34then she wanted to go back to Malaysia which is too far from everything I know.
0:09:34 > 0:09:40So we made a compromise to stay in a country that could be in the middle between the two countries.
0:09:40 > 0:09:45Costa Rica and Malaysia are on the opposite sides of the world, literally,
0:09:45 > 0:09:50so the UK is right in the middle between the two. That's why we are here.
0:09:50 > 0:09:55'Sergio and his family live in Swindon and he's bought this land
0:09:55 > 0:10:00'as his first property development investment in the UK.'
0:10:00 > 0:10:06- What involvement will you have in the whole project?- I'm going to project-manage the project.
0:10:06 > 0:10:13I'm going to do it by stages and I'm going to hire the different trades for doing the different things,
0:10:13 > 0:10:19so I'm going to find somebody to help me with the excavation and somebody to put the bricks up.
0:10:19 > 0:10:22I'll project-manage the whole thing.
0:10:22 > 0:10:26'At the moment, Sergio is budgeting around £60,000 for the build,
0:10:26 > 0:10:32'but he'll do the work in stages as and when he can afford it.'
0:10:32 > 0:10:39Right now, I have money for building the foundations and the walls, and, obviously, to buy the plot.
0:10:39 > 0:10:43- Please tell me you've got money for the roof.- No roof yet.- What?!
0:10:43 > 0:10:49I hope to put together some money while we build those things, so I can put a roof on at the end.
0:10:49 > 0:10:54But it's going to take a few months for getting all that together,
0:10:54 > 0:10:58so I plan to save a little bit for putting the roof on.
0:10:58 > 0:11:01It is an initial stage to make it waterproof.
0:11:01 > 0:11:07I think your roof's going to be kind of important. You've got to get a roof on.
0:11:07 > 0:11:09I've got to get a roof. Definitely.
0:11:09 > 0:11:13'I think we've established that a roof is non-negotiable.
0:11:13 > 0:11:16'It's not always this sunny in England.'
0:11:16 > 0:11:19# Nothing but blue skies do I see... #
0:11:19 > 0:11:23'Sergio will build the property in line with the planning permission,
0:11:23 > 0:11:29'although he'd like to make a few minor changes. I asked him to walk me through them.'
0:11:29 > 0:11:34I like the plans. The outside of the house is a nice little cottage.
0:11:34 > 0:11:39I want to use this area to become the kitchen and dining,
0:11:39 > 0:11:42so I will put the kitchen here, the dining here,
0:11:42 > 0:11:45then I will put a wall from here to here.
0:11:45 > 0:11:52I will put the downstairs bathroom in this corner, then the entrance of the house will be through here.
0:11:52 > 0:11:55What's the main reason for doing that?
0:11:55 > 0:12:02- I think the stairs coming out of the kitchen will distribute the smell of food through the whole house.- Right.
0:12:02 > 0:12:08And for many people that I talk to, that is something that people don't seem to like in their house, right?
0:12:08 > 0:12:15The smell will go upstairs into their bedrooms, so I want the kitchen separated from the rest of the house.
0:12:15 > 0:12:20'Talking of smells, Sergio has plans for that sewer too.'
0:12:20 > 0:12:26# Lord, I smell trouble ahead of me... #
0:12:26 > 0:12:29I need to build two inspection chambers in my property
0:12:29 > 0:12:34and then divert this sewage, making it through the side of the land.
0:12:34 > 0:12:36That sounds expensive to me.
0:12:36 > 0:12:41I'm budgeting at least £5,500 for that, so it's already in my calculations.
0:12:41 > 0:12:44- OK.- But it is the only gamble in the project.
0:12:44 > 0:12:49I haven't quoted that work yet, so hopefully, it doesn't go higher than that.
0:12:49 > 0:12:53- I wish you all the best for the project.- Thank you very much.
0:12:53 > 0:12:59Sergio has got experience in building, but only in Costa Rica and things here are slightly different.
0:12:59 > 0:13:04He's going to have to consider things like central heating and double glazing
0:13:04 > 0:13:11and I do hope he gets his money together to put a roof on because in Corsham that is fairly essential.
0:13:11 > 0:13:13Find out how he gets on later.
0:13:16 > 0:13:19I'm in Herne Hill in south-west London,
0:13:19 > 0:13:23slap-bang between buzzing Brixton and desirable Dulwich.
0:13:23 > 0:13:27Over recent years, it's become a hot spot for young professionals
0:13:27 > 0:13:32not quite ready to let go of the vibrancy and nightlife of Brixton or forego Dulwich's delis.
0:13:32 > 0:13:36But Herne Hill is more than a middle ground location.
0:13:36 > 0:13:41It's become desirable in its own right with boutiques, bars and restaurants
0:13:41 > 0:13:46and the beautiful Brockwell Park, surrounded by generous Victorian terraces.
0:13:46 > 0:13:48It sounds rather lovely.
0:13:48 > 0:13:51And so it is, even in the rain.
0:13:52 > 0:13:56# You and me and rain on the roof
0:13:56 > 0:14:01# Caught up in a summer shower... #
0:14:01 > 0:14:06And not only is it lovely, it's handy for London too, only 20 minutes by train.
0:14:06 > 0:14:12But Herne Hill feels a million miles away with its lovely village atmosphere.
0:14:13 > 0:14:18The property I'm here to see today is in the Poet's Corner conservation area.
0:14:18 > 0:14:23Now, it's on Milton Road, it's just down from Shakespeare and Chaucer,
0:14:23 > 0:14:27and it's on for a guide of just 360,000.
0:14:27 > 0:14:30I can't tell you how many bedrooms it has,
0:14:30 > 0:14:36but the catalogue just states it has potential for sub-division into three flats. Well, here it is.
0:14:36 > 0:14:39From the outside, it is a lovely, grand old building.
0:14:39 > 0:14:43I wonder if inside it's a case of Paradise Lost?
0:14:43 > 0:14:46Let's take a look.
0:14:46 > 0:14:51The frontages of the houses in this Victorian street are very grand and impressive,
0:14:51 > 0:14:56but not stating how many bedrooms there are in this one is a curious omission.
0:14:56 > 0:15:00Let's see what secrets this old terraced house is hiding.
0:15:00 > 0:15:05You enter the house on the raised ground floor, but it's all very dated.
0:15:05 > 0:15:11This door is blocked off and you walk into what was two reception rooms, now knocked into one.
0:15:11 > 0:15:17My fingers have been crossed for period features galore, but they've all long gone.
0:15:17 > 0:15:20There are fireplaces, but the wrong century.
0:15:20 > 0:15:24You can put features back, but you can't create what you've got here -
0:15:24 > 0:15:27lovely high ceilings, a gorgeous bay window,
0:15:27 > 0:15:30and there's two more floors to go.
0:15:30 > 0:15:35From outside, the house appears narrow, but it's actually very deep and roomy inside.
0:15:35 > 0:15:39It's not the space that catches your eye first.
0:15:39 > 0:15:43It's that worn and dated decor that's begging to be freshened up.
0:15:43 > 0:15:47And what a shame that those period features are now long gone!
0:15:50 > 0:15:55Down on to the lower ground floor, my first thought is, "Fantastic!"
0:15:55 > 0:15:57There's a separate entrance here.
0:15:57 > 0:16:02Remember the catalogue suggestion - potential for sub-division into flats.
0:16:02 > 0:16:06Block up these stairs and this flat would have its own entrance.
0:16:06 > 0:16:12You've got a large room at the front here and, at the back, a smaller space with an oil-burning stove.
0:16:12 > 0:16:14This place is a bit of a museum!
0:16:14 > 0:16:19If this house was to remain as one home, I'd knock that wall down and open up this space,
0:16:19 > 0:16:26put the kitchen and living area down here and put large bi-folding doors leading out on to the garden.
0:16:26 > 0:16:30I've done this myself in my own house and it works really well.
0:16:30 > 0:16:36I can imagine this space with modern units, but retaining that original plan.
0:16:36 > 0:16:41Every room in the house needs work. The place has been left untouched since the '50s.
0:16:41 > 0:16:46It all needs to be re-wired, re-plumbed and re-floored.
0:16:46 > 0:16:48Just look at that bathroom!
0:16:48 > 0:16:50# Pink, it's my new obsession... #
0:16:50 > 0:16:57It might have looked sweet back in the day, but it will take a lot of work to get it looking rosy again.
0:16:57 > 0:17:01And that's a nasty leak from the bathroom to the ground floor.
0:17:01 > 0:17:07I expected this house to have a few rotten floorboards, but what a new angle on the loo!
0:17:08 > 0:17:11It's like an en-suite for both floors.
0:17:11 > 0:17:17So, two bathrooms, one leaky toilet inside and one out the back that's rather draughty.
0:17:17 > 0:17:23I went upstairs to find out once and for all how many bedrooms this house has.
0:17:25 > 0:17:30This house is like a zig-zag of half landings leading to further rooms.
0:17:30 > 0:17:35I've just passed what was the kitchen, so I suppose up here there's three bedrooms
0:17:35 > 0:17:37and what a bedroom!
0:17:37 > 0:17:39Look at those windows!
0:17:39 > 0:17:45Wow, vast! But the signs of neglect are adding up here and they are beginning to worry me.
0:17:45 > 0:17:48Look over here - the plaster is just shot.
0:17:48 > 0:17:53Somebody started to repair the floor over there and the windows, but it's all half-hearted
0:17:53 > 0:18:00and that says to me this is "a full rip out and start again". No question about it!
0:18:00 > 0:18:04Those two other bedrooms aren't in much better condition.
0:18:04 > 0:18:07# Rip it up and start again
0:18:07 > 0:18:11# Rip it up and start again... #
0:18:11 > 0:18:16This property needs so much more than just a lick of paint and a clean,
0:18:16 > 0:18:18but there is enormous potential.
0:18:18 > 0:18:24The jumble of rooms gives it masses of character and it's ripe for opening up and reorganising.
0:18:24 > 0:18:29That means a lot of structural work and the garden is desperate for attention.
0:18:29 > 0:18:32It's a fabulous size, but needs digging out.
0:18:32 > 0:18:37If you decided to keep that rotting old shed, you're completely potty!
0:18:38 > 0:18:41I asked a local estate agent for his thoughts
0:18:41 > 0:18:44on this dusty old gem.
0:18:44 > 0:18:49My first thought was, "At last I get to see a real London townhouse!"
0:18:49 > 0:18:53An original period London townhouse. It's fantastic.
0:18:53 > 0:18:56Looking at its condition, it needs a lot of work.
0:18:56 > 0:19:02It hasn't been looked after for a very long time. It needs re-wiring, you'd have to put central heating in.
0:19:02 > 0:19:06There are some damp problems, so there's a lot of work to be done,
0:19:06 > 0:19:11but it will be a great labour of love and fantastic when it's finished.
0:19:11 > 0:19:16How much would it take to turn this wreck into a family home?
0:19:16 > 0:19:21The spend on this house, depending on what you wanted to do, could be astronomical.
0:19:21 > 0:19:27If you wanted to do a proper job with decent equipment and your kitchens and your bathrooms,
0:19:27 > 0:19:30you'll spend close to £100,000.
0:19:30 > 0:19:35£100,000 on top of the guide price of £360,000?
0:19:35 > 0:19:37That's a massive investment.
0:19:37 > 0:19:43Would there be any profit to be made by a quick resale without investing in a renovation?
0:19:43 > 0:19:48I think the property as it stands would be worth just under the £400,000 mark.
0:19:48 > 0:19:52In its current condition, that's a potential pre-tax profit of 40,000
0:19:52 > 0:19:55if it sold for its guide price.
0:19:56 > 0:20:00But if the work was done, how much would it be worth?
0:20:00 > 0:20:05It could rise anywhere up to about half a million pounds to £550,000.
0:20:05 > 0:20:11If it could sell for half a million, that would certainly be an incentive to do the work,
0:20:11 > 0:20:15but somebody will need a burning desire for renovation.
0:20:15 > 0:20:19There is a huge amount to do. It may not be enough for the rental market.
0:20:19 > 0:20:24The problem with this house for rental is the size of it and the layout.
0:20:24 > 0:20:29For the amount of money you've got to spend on it to get it up to that level to rent it,
0:20:29 > 0:20:35I don't think you'd get the yield back, so there's no rental potential. It has to go to an end buyer.
0:20:35 > 0:20:40Let's see who exactly that buyer was at the auction.
0:20:40 > 0:20:43Somebody start me at 300, Herne Hill? 300 may I say?
0:20:43 > 0:20:47Thank you. 300 I have. 305?
0:20:47 > 0:20:49310. 315? 315. 320?
0:20:49 > 0:20:53320. 325. 30? 30. 35?
0:20:53 > 0:20:5635. 40? 40. 45?
0:20:56 > 0:20:58340 I'm bid then.
0:20:58 > 0:21:02340 here. Any more?
0:21:02 > 0:21:05Thank you, madam. 345. 350? 350.
0:21:05 > 0:21:10355? There we are, 355. Sorry. 60?
0:21:12 > 0:21:15At 355, I'll take it. 357,500. 360?
0:21:16 > 0:21:20360? 360. 362 and a half?
0:21:20 > 0:21:22360.
0:21:22 > 0:21:26Lady's bid here against you. I'll take 2 and a half...?
0:21:26 > 0:21:31At £360,000, sitting down, Herne Hill. First time at 360...
0:21:32 > 0:21:35Second time at 360...
0:21:36 > 0:21:40Last time, sitting down, at £360,000, against you...
0:21:40 > 0:21:43All done at 360, Herne Hill. Sold to you, madam. Well done.
0:21:43 > 0:21:49'The winning bidders for this daunting project were Josh and Lynn, Herne Hill locals.
0:21:49 > 0:21:52'Josh works in IT and Lynn in a hospital.
0:21:52 > 0:21:58'They got the house for the guide price of 360,000, but for them, it's not about the profit margin.'
0:21:58 > 0:22:02# Hey, hey, baby... #
0:22:02 > 0:22:06'They will renovate it for themselves as their family home.'
0:22:06 > 0:22:10# I wanna know if you'll be my girl... #
0:22:10 > 0:22:14- Guys, congratulations.- Thank you. - This is a great house.- We hope so.
0:22:14 > 0:22:18What did you do to celebrate once you'd got the house?
0:22:18 > 0:22:24Oh, gosh. We came here with a bottle of champagne and then nearly cried at all the work we have to do.
0:22:24 > 0:22:29Thursday evening we came here and sat here in the dark with a couple of candles
0:22:29 > 0:22:34as we hadn't figured out where the fuse box was and drank champagne.
0:22:34 > 0:22:40- What's your plan? Are you going to be moving in straight away?- No. - Definitely not.- Definitely not.
0:22:40 > 0:22:44In about six months maybe, we hope, we will be in here.
0:22:44 > 0:22:48We're having a baby in three months, so that will happen in between.
0:22:48 > 0:22:53- You've got a lot going on - a new baby, a new house.- Yeah.
0:22:53 > 0:22:58# Hey, hey, baby... #
0:22:58 > 0:23:03'With a baby due, they've got a pretty tight six-month deadline,
0:23:03 > 0:23:06'so what have they got planned for the place?'
0:23:06 > 0:23:10Let's talk about the layout. What's downstairs going to be?
0:23:10 > 0:23:16The main living area, the kitchen, the central heart of the house, then the living area to the front
0:23:16 > 0:23:20and hopefully build a sun room or a conservatory at the back,
0:23:20 > 0:23:22then leading to the garden.
0:23:22 > 0:23:26'I'm so glad they're going to get rid of that run-down shed out back.
0:23:26 > 0:23:32'It will give them a safe space for the new baby to play in and the local wildlife would approve too.
0:23:34 > 0:23:41'Upstairs, Josh and Lynn will save money by preserving the bedrooms, rather than knocking them through.
0:23:41 > 0:23:47'But they will have to fork out for a new kitchen and bathroom. Are they worried about the cost?'
0:23:47 > 0:23:52We did do an assessment, just really room by room, how much it would come to.
0:23:52 > 0:23:56- 80,000 is what... - That was 80 with contingencies.
0:23:56 > 0:24:01That was a good area of... 12,000 contingency, I think we had.
0:24:01 > 0:24:06- I'll be amazed if you do it for £80,000.- Yeah. - Really?- In my experience.
0:24:06 > 0:24:10Only because you have a lot of work to do downstairs in the basement.
0:24:10 > 0:24:13There are so many different levels down there.
0:24:13 > 0:24:19We just have to be careful about researching and sourcing everything that we want to put into the place
0:24:19 > 0:24:23and try and get value for money and bargain with people.
0:24:23 > 0:24:27This is the climate to do that, so hopefully, we'll be lucky.
0:24:27 > 0:24:33'I hope they are. It sounds as though Josh is quite happy to do some of the work himself,
0:24:33 > 0:24:36'although he might need to do a little research first.'
0:24:36 > 0:24:39I don't know that side of the market too well.
0:24:39 > 0:24:44I have no idea how much it would cost to get an expert to knock a wall through,
0:24:44 > 0:24:50but I'm going to try and find out how to do it myself, then we'll do that bit.
0:24:50 > 0:24:54Don't look at Lynn. She can't help with the wall knocking through!
0:24:54 > 0:25:00- I'll give you the mallet.- You can just say, "No, you missed a bit." - I'll sit in the corner and point.
0:25:00 > 0:25:03Yeah, OK, you can be project manager.
0:25:03 > 0:25:05You've got exciting times ahead.
0:25:05 > 0:25:12I'm so pleased it's fallen into the laps of a lovely couple who want this as a home and not a developer.
0:25:12 > 0:25:15That would be a shame. It's such a lovely house.
0:25:15 > 0:25:18Somebody could have had two or three flats here,
0:25:18 > 0:25:22- but it's great it will be a family house. Good luck.- Thank you.
0:25:23 > 0:25:28'Coming up, we go to Devon to see how this old chapel has been completely revived.
0:25:28 > 0:25:31'I'll be singing its praises later.
0:25:33 > 0:25:40'Back in south-east London, Josh was struggling with the amount of work there was to do.'
0:25:40 > 0:25:45There's another bunch of rooms to do. That's not so much fun.
0:25:45 > 0:25:50'But first, how did the owner of this land get on with his plan to build a house?'
0:25:50 > 0:25:53I will build a two-bedroom house.
0:25:57 > 0:26:01We're back in Corsham just outside Bath to catch up with Sergio.
0:26:01 > 0:26:07He bought this plot at auction for 46,000 and had grand plans to build a two-bedroom house on it.
0:26:07 > 0:26:12The land already had planning permission, but Sergio wanted to make a few changes.
0:26:12 > 0:26:16I will put the kitchen here, I will put the dining here,
0:26:16 > 0:26:20then I will put a wall from here to here.
0:26:20 > 0:26:23# A change, a change will do you good... #
0:26:23 > 0:26:26So how did Sergio get on with the build?
0:26:26 > 0:26:30Well, over a year later, we met up with him at the plot
0:26:30 > 0:26:36where we discovered progress had been even slower than a snail's pace.
0:26:36 > 0:26:40In fact, it looks exactly the same as it did before.
0:26:40 > 0:26:42# All the same
0:26:42 > 0:26:45# But you don't know why... #
0:26:45 > 0:26:49After he bought the plot, Sergio had a change of career.
0:26:49 > 0:26:53He gave up his financial manager job to run a home care agency.
0:26:53 > 0:26:57This put the building work on the back burner.
0:26:57 > 0:27:00I made a decision to purchase the new business.
0:27:00 > 0:27:06I wanted to have enough funds for doing it in a relaxed way,
0:27:06 > 0:27:11then I decided to sell the property and release the money that was in here.
0:27:11 > 0:27:16I was really looking forward to build this house, but then the priorities changed
0:27:16 > 0:27:21and I'm focusing on the new business, rather than the building.
0:27:21 > 0:27:24So, Sergio put the land back on the market.
0:27:24 > 0:27:29He put it up for sale by tender to see who would offer most for it.
0:27:29 > 0:27:34We received quite a few offers and we took the highest offer.
0:27:34 > 0:27:40It took a little bit over a month to exchange and basically, that's what happened, yeah.
0:27:40 > 0:27:47The market had slumped in the year since he bought it, so he only got £42,000, 4,000 less than he paid.
0:27:47 > 0:27:50# It's all about the money... #
0:27:50 > 0:27:53But he doesn't sound too downbeat about it.
0:27:53 > 0:27:58Based on what is happening in the market in general, it's not a big loss.
0:27:58 > 0:28:04You have to be prepared to take a loss here and there sometimes in this industry and in this business,
0:28:04 > 0:28:07so it wasn't a big deal, right?
0:28:07 > 0:28:11You have to be prepared for taking losses once in a while.
0:28:11 > 0:28:14Sergio has a healthy attitude to the loss.
0:28:14 > 0:28:18Sometimes in the property world, you just need to take a hit
0:28:18 > 0:28:21and besides, a few grand isn't a complete cat-astrophe.
0:28:23 > 0:28:28So, just a couple of weeks after he sold the plot at a slight loss,
0:28:28 > 0:28:32what do two estate agents think of its prospects now?
0:28:32 > 0:28:36I'm probably not surprised that nothing's been built here,
0:28:36 > 0:28:40bearing in mind how the market has been since this plot was sold,
0:28:40 > 0:28:44but now the market has moved forward quite well, quite considerably,
0:28:44 > 0:28:49so now would be a better opportunity of achieving a better figure for it.
0:28:49 > 0:28:53In the last 12 months, the market has improved considerably.
0:28:53 > 0:28:56The values are certainly stronger.
0:28:56 > 0:29:02There hasn't been a great increase, but there's a much better chance to achieve a reasonable price now.
0:29:02 > 0:29:08So, if Sergio had built that two-bedroomed house, what kind of return would there have been?
0:29:08 > 0:29:12At the moment, it would probably achieve around about £165,000.
0:29:12 > 0:29:19Probably somewhere between 155,000 and 160,000 for a two-bedroomed, detached house on this plot.
0:29:19 > 0:29:22That is higher than my original numbers.
0:29:22 > 0:29:25I was expecting like around 143.
0:29:25 > 0:29:32So, again it shows that maybe the market has improved since the time that we made the original valuation.
0:29:32 > 0:29:36Sergio reckoned it would cost 100 grand to build the house,
0:29:36 > 0:29:40so that could have been a fantastic pre-tax profit of 60 grand.
0:29:40 > 0:29:43What return would it have made as a rental?
0:29:43 > 0:29:47A two-bedroomed house would readily let in this location right now
0:29:47 > 0:29:52and should achieve, unfurnished or furnished, around about £650 per calendar month.
0:29:52 > 0:29:57The rental value will be somewhere in the region of £650 a month.
0:29:58 > 0:30:02That works out at a healthy yield of over 7.5%.
0:30:02 > 0:30:07It sounds like Sergio would have been quids in, had he decided to build.
0:30:07 > 0:30:10Does he have any regrets?
0:30:10 > 0:30:15Not really because the decision of not building here was a conscious decision
0:30:15 > 0:30:18and a change of priority and focus,
0:30:18 > 0:30:22so I don't have really major regrets of not building here.
0:30:22 > 0:30:25# No regrets...
0:30:27 > 0:30:29# They don't work... #
0:30:29 > 0:30:32In this case, this plot didn't work out.
0:30:32 > 0:30:37On other occasions, I had very good results on other plots, so...
0:30:38 > 0:30:45Every project is different and things change a lot and you need to be prepared to adjust accordingly.
0:30:45 > 0:30:49And we wish Sergio all the best with his next project.
0:30:49 > 0:30:53He may not have built a home on this plot, but at least someone has.
0:30:53 > 0:30:57# Little yellow spider, laughing at the snow
0:30:57 > 0:31:01# Well, maybe that spider knows something that I don't know... #
0:31:08 > 0:31:10'In the summer of 2004,
0:31:10 > 0:31:14'I thought I'd found a perfect cottage in Devon,
0:31:14 > 0:31:19'but all wasn't quite what it seemed as this dashing young fellow explains.'
0:31:19 > 0:31:24Kingskerswell, a tiny village just outside Newton Abbot in Devon.
0:31:24 > 0:31:28It's most people's idea of an idyllic rural retreat,
0:31:28 > 0:31:32so properties here are both very expensive and difficult to come by.
0:31:32 > 0:31:35So, when you see something like this,
0:31:35 > 0:31:41a chocolate box, thatched cottage with a guide price of just £95,000,
0:31:41 > 0:31:43you definitely take interest.
0:31:43 > 0:31:47But of course, things aren't quite what they seem.
0:31:49 > 0:31:52There is a bit of a sting in the tail.
0:31:53 > 0:31:57That is the cutesy-wootsy bit at the front there.
0:31:57 > 0:32:02But that is not up for sale. What is going for auction is the bit at the back.
0:32:02 > 0:32:08It's attached, it's got the same lovely thatched roof, so it's definitely still worth looking at,
0:32:08 > 0:32:12especially when you discover that it was once the old Gospel Hall.
0:32:12 > 0:32:14Well, praise the Lord!
0:32:14 > 0:32:16# Hallelujah
0:32:16 > 0:32:19# Here I am
0:32:19 > 0:32:23# Let's cut the strings tonight... #
0:32:23 > 0:32:29So, through the entrance vestibule into what is basically one big, huge space.
0:32:29 > 0:32:35It was the Gospel Hall and it's a great big hall. But can you imagine what you could do with this place?
0:32:35 > 0:32:37Great big windows, that's lovely.
0:32:37 > 0:32:40You've also got this massive ceiling height
0:32:40 > 0:32:45and it looks like there's more ceiling height above there which you could open up.
0:32:45 > 0:32:50Got a bit of an issue on this wall here with damp. That's penetrating damp.
0:32:50 > 0:32:57The level of the soil outside is probably about this level, but you can sort that out with tanking.
0:32:57 > 0:33:00This has fantastic potential.
0:33:00 > 0:33:04It'll need somebody with imagination and some kind of design skills,
0:33:04 > 0:33:07but what an opportunity!
0:33:13 > 0:33:19I'm already thinking about how you could fit bedrooms, bathrooms and kitchens in here.
0:33:19 > 0:33:25You'd need an architect who spoke the tongues of men and some help from the angels too, I reckon!
0:33:26 > 0:33:32One of the big things about this place is its construction which is unconventional.
0:33:32 > 0:33:36You've got yourself a thatched roof and cob walls.
0:33:36 > 0:33:41These are about three foot thick and made of a mixture of stone, straw and mud.
0:33:41 > 0:33:47They're great. This place has been around for 200 years, but you have to look after them in a certain way.
0:33:47 > 0:33:52That way is not to cover them in concrete rendering, as happened in the past.
0:33:52 > 0:33:58Also, when you restore this place, because it's a listed building, you'll have to rebuild this in cob.
0:33:58 > 0:34:02That is something to factor into your cost equations.
0:34:02 > 0:34:05Remember, cob is a mixture of earth and straw.
0:34:05 > 0:34:11It can be difficult and expensive to replace and so can thatch, but there is something else to consider too.
0:34:11 > 0:34:17There is another element to this property and it's round the back. You'll never guess what it is!
0:34:17 > 0:34:19Well, actually, you might.
0:34:19 > 0:34:25It's a loo. I don't know what this is all about. It's on its own at the back of the property here.
0:34:25 > 0:34:28Still, quite a useful space,
0:34:28 > 0:34:33especially as the planning permission is to make this the main entrance to the property,
0:34:33 > 0:34:39so you put a hole in this wall and have that as your main door and keep that as a loo and a cloakroom.
0:34:39 > 0:34:44That makes a big difference here because suddenly you've got good access.
0:34:44 > 0:34:47The planning permission is for a two-bedroom cottage.
0:34:47 > 0:34:51There's a lot of work here, but talk about a blank canvas!
0:34:51 > 0:34:55They don't come much blanker than this.
0:34:55 > 0:35:01So let's find out who bought this property at the auction.
0:35:01 > 0:35:06Lot 1, where better to start, is Kingskerswell Gospel Hall, Kingskerswell, Newton Abbot.
0:35:06 > 0:35:11Is it 100,000 somewhere? Nice and simple. £100,000 somewhere?
0:35:11 > 0:35:14100, we're away. I've got 100. 100 I have, at 100.
0:35:14 > 0:35:18At 100. 2 for me now? At 100 somewhere. At 100 I've got.
0:35:18 > 0:35:22At 100, the opening bid of the day. 100 I've got.
0:35:22 > 0:35:25At £100,000. At £100,000. Is there 2 anywhere?
0:35:25 > 0:35:29At £100,000 once then. Don't be shy.
0:35:29 > 0:35:32Great opportunity. At £100,000 twice.
0:35:32 > 0:35:37At £100,000. Are you sure and done because we will be selling to the gentleman down here?
0:35:37 > 0:35:41At £100,000 first time, second and third time.
0:35:41 > 0:35:46Here we go. Simple as that. You're missing it. At £100,000...
0:35:46 > 0:35:49Sir, well done. Spot on. That's the way to do it.
0:35:49 > 0:35:53Right, great, we'll be out on the golf course before...
0:35:53 > 0:35:55LAUGHTER
0:35:55 > 0:36:01'And that first and only bid of 100,000 was made by Daniel.'
0:36:01 > 0:36:04# I'm so glad to see you
0:36:04 > 0:36:07# I'm so glad you're here... #
0:36:07 > 0:36:11'Daniel sounds like the perfect man to take on this place.'
0:36:11 > 0:36:16- Tell me about yourself.- I'm an architect in Torquay. Architectural technician, I should say.
0:36:16 > 0:36:22I work for a firm over there and we do a lot of listed buildings and that kind of thing
0:36:22 > 0:36:24because there's a lot of them in this area.
0:36:24 > 0:36:28I'm in the right line of work to do this properly, I hope.
0:36:28 > 0:36:33- What did you think when you first saw it?- I just loved it. I loved the setting.
0:36:33 > 0:36:37I originally thought that the garden came with it.
0:36:37 > 0:36:43I originally thought actually from just calling round and looking that it was the cottage on the front,
0:36:43 > 0:36:48but once I got in, I looked around and yes, it's got some problems, it's got damp,
0:36:48 > 0:36:50it's just a big space,
0:36:50 > 0:36:54but I could see past that, I could see the features that it's got,
0:36:54 > 0:36:59particularly in terms of the outside and how pretty it is.
0:36:59 > 0:37:03'Having no garden may be a drawback, but it hasn't put Daniel off.
0:37:03 > 0:37:08'Let's hope he's just as positive when I show him something he hasn't seen yet.'
0:37:08 > 0:37:12Oh, fabulous. It's just what I've always wanted(!)
0:37:12 > 0:37:14LAUGHTER
0:37:15 > 0:37:17Oh, dear.
0:37:17 > 0:37:19That's the neighbour's house.
0:37:23 > 0:37:28'Let's hope Daniel doesn't come up against any more brick walls with the planning.'
0:37:28 > 0:37:35- So these are the original plans? - Yeah, these were done by the vendor before I was ever involved.
0:37:35 > 0:37:39- But I want to change them. - So what have you come up with then?
0:37:39 > 0:37:42These are the plans I've been working through.
0:37:42 > 0:37:47Similar situation with living and kitchen and bathroom at ground floor level
0:37:47 > 0:37:50and a utility room that you enter through.
0:37:50 > 0:37:57- I want to keep it completely open to the underside of the eaves. - The whole height?- The whole height.
0:37:57 > 0:38:01Then you go up a set of stairs to the first floor plan with a landing
0:38:01 > 0:38:07which is like a bridge that runs across between two large bedrooms at the upper floor,
0:38:07 > 0:38:12so I intend to give this a real sense of character and height and space and light.
0:38:12 > 0:38:19- What are you trying to create in general?- Just something that gives a bit of wow factor as you walk in.
0:38:19 > 0:38:25I know it's a cliche, but I feel that a building that has survived this long and is listed
0:38:25 > 0:38:29deserves something a bit more than to be partitioned up into little boxes.
0:38:29 > 0:38:33- What you're talking about here is not going to be cheap.- No.
0:38:33 > 0:38:37Do you have any idea of costs and budgets?
0:38:37 > 0:38:41- My budget for it is 60,000.- Right. - Where I find it from, I don't know.
0:38:46 > 0:38:53Any idea of how long this is going to take? I suppose a lot of it depends on your finances really.
0:38:53 > 0:38:59It does depend on finances. It also depends on how much work I'm prepared to carry out myself.
0:38:59 > 0:39:05- I can't wait to come back. - I'll try and speed it on for you, but I can't make any promises.
0:39:05 > 0:39:10- Congratulations. You've got the imagination and inspiration to do it.- Thank you.- Well done.
0:39:10 > 0:39:16'That was in 2004. When we first went back a few months later, not much had changed.
0:39:16 > 0:39:21'But a few years on, Daniel had turned it into a very stylish new home.
0:39:21 > 0:39:24'Stay with us to see the fabulous results.'
0:39:27 > 0:39:32We've given our buyers time to do the work, but has it all gone to plan?
0:39:32 > 0:39:36Will we return to bare plaster or a perfect finish?
0:39:36 > 0:39:38Let's find out.
0:39:38 > 0:39:42We're back at Herne Hill, south-east London,
0:39:42 > 0:39:48where Josh and Lynn bought this Victorian terraced house at auction for the guide price of 360,000.
0:39:48 > 0:39:52They had a massive job on their hands to renovate it.
0:39:52 > 0:39:58Every room needed complete redecoration and the plumbing and electrics were positively scary.
0:39:58 > 0:40:04Their deadline to do the work was six months and Josh was keen to do a lot of it himself.
0:40:06 > 0:40:11I have no idea how much it would cost to get an expert to knock a wall through,
0:40:11 > 0:40:14but I'm going to try and find out how to do it myself.
0:40:14 > 0:40:20That was nearly a year ago, so did all that research pay off? What state is the house in now?
0:40:20 > 0:40:27We caught up with Josh and Lynn and their bundle of joy, seven-month-old baby Cara, to find out.
0:40:27 > 0:40:30# My baby don't care for shows... #
0:40:30 > 0:40:35First of all, Lynn reminds us of how the property used to look.
0:40:35 > 0:40:42Well, when we bought the place, it was really, really dark and quite dingy and musty.
0:40:42 > 0:40:48Everything was painted mustard and green, so compared to now, there's quite a big difference, I suppose.
0:40:48 > 0:40:54There's no supposing about it. The place has been completely transformed.
0:40:59 > 0:41:02They redecorated throughout,
0:41:02 > 0:41:07stripping off that tattered old wallpaper and putting in new flooring.
0:41:08 > 0:41:13But the biggest change was on the cavernous downstairs floor.
0:41:13 > 0:41:19This has been completely opened up and become a wonderfully light and cosy family space.
0:41:19 > 0:41:21The basement was basically two rooms
0:41:21 > 0:41:27and a horrible little dingy corridor and a pantry that was completely musty,
0:41:27 > 0:41:31so we've opened everything up, still kept the utility room.
0:41:31 > 0:41:33It's a nice, bright area
0:41:33 > 0:41:38and this is really the centre of the family day-to-day activities -
0:41:38 > 0:41:44cooking and we can see the kids and all getting together and chatting in the evening.
0:41:44 > 0:41:49And the homework paid off. Josh managed to knock through those walls himself.
0:41:49 > 0:41:52Not bad for a first-timer!
0:41:52 > 0:41:55I spent a lot of time online researching how to do it
0:41:55 > 0:42:01and talking to my friends who are in the building trade, getting ideas from them.
0:42:01 > 0:42:05That side of it is a lot of fun. The decorating is less fun.
0:42:05 > 0:42:09After doing one room, you've pretty much figured out how to do it,
0:42:09 > 0:42:13then to think there's a bunch of rooms to do, that's not so much fun.
0:42:13 > 0:42:19But Josh didn't need to worry too much about the decoration. Lynn handled that side of the operation
0:42:19 > 0:42:25and as she was pregnant for most of it, even managed to do it with her feet up.
0:42:25 > 0:42:32# And you decorated my life... #
0:42:32 > 0:42:36I've had most of the time sitting on the couch and sourcing materials
0:42:36 > 0:42:41and the design, I suppose, the interior design of the place.
0:42:41 > 0:42:45# You decorated my life... #
0:42:45 > 0:42:51Lynn furnished the whole house with second-hand bargains she tracked down on the internet.
0:42:51 > 0:42:54We had the fireplace for 99p
0:42:54 > 0:42:59and the Belfast sink was a fraction of the price it would have cost originally.
0:42:59 > 0:43:04Our biggest bargain, I suppose, was probably the kitchen,
0:43:04 > 0:43:08which we got for maybe a tenth of the price off an internet auction site.
0:43:08 > 0:43:12And whilst Lynn was hunting for those great deals,
0:43:12 > 0:43:15Josh was busy working on the house in his spare time
0:43:15 > 0:43:19around his normal work schedule, but he needed expert help for some jobs.
0:43:19 > 0:43:23An electrician re-wired the house completely.
0:43:23 > 0:43:27Upstairs, he and a team of builders stole some room out of the bedrooms
0:43:27 > 0:43:30to create a second bathroom.
0:43:30 > 0:43:33And remember that flush of pink in the old one?
0:43:33 > 0:43:36Well, thankfully, that's now gone too.
0:43:37 > 0:43:42# Ooh, my honey, you got me working day and night... #
0:43:42 > 0:43:46There's still a fair bit of decorating to finish upstairs.
0:43:46 > 0:43:52There's some painting to be done and in some places, the heating and electrics need fixing.
0:43:52 > 0:43:56And the middle floor isn't quite ready to be lived in either.
0:43:56 > 0:44:01It's full of junk. It's all my tools and materials. It's a workshop at the moment.
0:44:01 > 0:44:05Eventually, we hope to make that into a big double lounge
0:44:05 > 0:44:10with shelving and books and cupboards, to make it more of a comfortable seating area.
0:44:10 > 0:44:16So, Josh still has more to complete inside and the garden is not quite there yet.
0:44:16 > 0:44:23This whole area at the back here was sheds and old conservatories, so that's all been taken away.
0:44:23 > 0:44:29Then here, we've put in these sleepers. Not quite finished yet. That side still needs to be done.
0:44:29 > 0:44:34The bit at the back we'll grass over and we'll put a bench up against the wall.
0:44:34 > 0:44:37And this bit here will be the conservatory.
0:44:38 > 0:44:43I asked two local estate agents what they thought of the property
0:44:43 > 0:44:46and the work Josh and Lynn have done on it so far.
0:44:48 > 0:44:50They've done a fantastic job.
0:44:50 > 0:44:52They've kept a lot of the features
0:44:52 > 0:44:59and have brought in even more features by stripping floorboards, banister rails. It looks fantastic.
0:44:59 > 0:45:02I really like the fact that it offers versatility.
0:45:02 > 0:45:06It has lots of period features and it has a contemporary twist as well,
0:45:06 > 0:45:10so the fact that it's so versatile is a big plus.
0:45:10 > 0:45:12The new layout is fantastic.
0:45:12 > 0:45:18They've put in this bathroom, they've used this space which normally would have been left to waste.
0:45:18 > 0:45:21I think it's really clever.
0:45:21 > 0:45:24They bought the house for 360,000
0:45:24 > 0:45:28and so far have spent around 62 grand doing it up.
0:45:28 > 0:45:33Once the renovation is completed, how much could it re-sell for?
0:45:33 > 0:45:40Once the work is completed, I would put this property on the market between £550,000 to £600,000.
0:45:40 > 0:45:45Once fully renovated, I'd put the property on the resale market for £675,000.
0:45:45 > 0:45:49- Wow!- That sounds quite nice. - Really? That sounds pretty good.
0:45:49 > 0:45:53Especially with the current climate, I suppose. We're quite pleased.
0:45:54 > 0:46:00If they spend their full renovation budget, then their total outlay will be 440,000.
0:46:00 > 0:46:05Based on that higher resale estimate of 675,000,
0:46:05 > 0:46:10that's a potentially whopping profit of 235 grand,
0:46:10 > 0:46:12minus the usual expenses, of course.
0:46:12 > 0:46:18But by the sound of it, Lynn, Josh and Cara won't be leaving this house for a good while yet.
0:46:18 > 0:46:23When we bought the house, we thought it was our dream home and it still is.
0:46:23 > 0:46:27It's taking some time to get there, but no, everything is fantastic.
0:46:27 > 0:46:34The fact that we've done it ourselves as well is great. We've made it to look the way we want it.
0:46:34 > 0:46:39It's been a lot of work, but it is very satisfying to do something like this.
0:46:39 > 0:46:44Being here in this house and being a mum for the first time is absolutely fantastic.
0:46:44 > 0:46:48She's just adorable. I couldn't wish for a better baby.
0:46:48 > 0:46:50# Drea-ea-eam
0:46:50 > 0:46:52# Dream, dream, dream... #
0:46:52 > 0:46:55So, a perfect baby in a perfect family home.
0:46:55 > 0:46:59Don't you just love stories with happy endings?
0:46:59 > 0:47:01# When I want you... #
0:47:03 > 0:47:08Back in 2004, tucked behind a picturesque thatched cottage,
0:47:08 > 0:47:11I came across an old Gospel Hall.
0:47:11 > 0:47:15It wasn't much more than one large room with a toilet at the back,
0:47:15 > 0:47:21but it was the fact that it was a blank canvas that appealed to architectural technician Daniel
0:47:21 > 0:47:24who paid £100,000 for it at auction.
0:47:24 > 0:47:30- I want to keep it completely open to the underside of the eaves. - The whole height?- Yes.
0:47:30 > 0:47:34You go up some stairs to the first floor with a landing like a bridge
0:47:34 > 0:47:37that runs across between two large bedrooms.
0:47:37 > 0:47:44- What are you trying to create in general?- Just something that gives a bit of wow factor as you walk in.
0:47:45 > 0:47:51Daniel had some great plans, but the first time we returned, there wasn't much progress.
0:47:51 > 0:47:55So you can see there hasn't been that much of a change in here,
0:47:55 > 0:47:59except a few holes in the floor and plasterboard removed from the walls.
0:47:59 > 0:48:04That's because I've been dealing with planning permission, building regulations applications,
0:48:04 > 0:48:09tender packages and the legal side of things, so quite a lot to be done.
0:48:09 > 0:48:13Time marched on and Daniel continued to work
0:48:13 > 0:48:16at turning his dreams into reality.
0:48:16 > 0:48:19Now, five years later, we're back.
0:48:19 > 0:48:24What we had here was just a great big hall and a rather sub-standard toilet.
0:48:31 > 0:48:34And now just look at it!
0:48:37 > 0:48:42The old hall is now Daniel's home and he's lived here nearly four years.
0:48:42 > 0:48:47I changed the design, so that we used the toilet as the main entrance.
0:48:47 > 0:48:51You come down from street level into the centre of the building
0:48:51 > 0:48:54whereas before, you came in right on a corner.
0:48:58 > 0:49:02The recess where the toilet was has been turned into a study.
0:49:07 > 0:49:13To one side of the dining room and that central stairwell is a great kitchen.
0:49:23 > 0:49:29And on the other side of the hall, there is a beautifully finished lounge.
0:49:36 > 0:49:41I was on site an awful lot, managing the building process as well
0:49:41 > 0:49:46and making sure that the details were undertaken in the way that I wanted them to be.
0:49:46 > 0:49:52That's fantastic when you see something coming out of the ground and from the paper
0:49:52 > 0:49:54actually being built physically.
0:49:54 > 0:50:00It's a pretty special feeling to know that that's your design and that's your creation.
0:50:00 > 0:50:03And boy, does this place fulfil the vision!
0:50:10 > 0:50:13With two bedrooms and a bathroom upstairs,
0:50:13 > 0:50:17Daniel has created a fantastic cottage from an empty shell.
0:50:17 > 0:50:21The Gospel Hall really does have something to sing about now.
0:50:40 > 0:50:45But getting to this stage wasn't without difficulties and heartache.
0:50:45 > 0:50:51When you were last here, nothing had happened. I'd done a little bit of investigation work into the structure
0:50:51 > 0:50:57and found a brick wall behind one of the cupboards in the corner of what is now the living room.
0:50:58 > 0:51:00Oh, fabulous(!)
0:51:00 > 0:51:03I thought, "Oh, no, what is going on here?"
0:51:03 > 0:51:10I was taken to the pub by my mates and I cried into a pint because I thought, "It's the end of the world."
0:51:10 > 0:51:13It might not be the end of the world after all.
0:51:13 > 0:51:17Daniel thought the wall might restrict his renovation plans,
0:51:17 > 0:51:22but he found a way of building around it, perhaps fuelled by those beers.
0:51:23 > 0:51:27This is what I've called the flying freehold.
0:51:27 > 0:51:32What this means is the original wall of the property is set back into that recess
0:51:32 > 0:51:36and this area was the area that I originally thought was a cupboard.
0:51:36 > 0:51:39It isn't. It's the neighbour's house.
0:51:39 > 0:51:42So we had to keep that because it's historic,
0:51:42 > 0:51:46so what I've done is I've tried to use that within the design
0:51:46 > 0:51:50and I've mirrored it with a porchway that leads out to the garden
0:51:50 > 0:51:56and I've created this recess which has got my bookcase and my fish tank, so it worked out quite successfully.
0:51:58 > 0:52:00What an elegant solution this is!
0:52:00 > 0:52:06It really looks like it was always meant to be this way and that's what good design is all about.
0:52:06 > 0:52:11This area was originally going to be just a bridge walkway
0:52:11 > 0:52:15between the two bedrooms and completely open on both sides,
0:52:15 > 0:52:21but practically speaking, I needed to move the bathroom from downstairs up to this location.
0:52:21 > 0:52:26But I've kept the open, double height space on this side and it works really well.
0:52:26 > 0:52:30It throws a lot more light into the downstairs space.
0:52:33 > 0:52:39This feature was another element of the building which I discovered as I was looking through.
0:52:39 > 0:52:41It's a very large steel beam.
0:52:41 > 0:52:47At some point in the past, the roof must have burnt down or has been removed and the solution was
0:52:47 > 0:52:52to put a huge steel beam that runs the entire length of the original chapel.
0:52:52 > 0:52:58That supports the roof, so I had to be careful when putting the dormers in and doing the works to the roof
0:52:58 > 0:53:00that I didn't disturb this structure.
0:53:04 > 0:53:10So, one by one, Daniel came up with imaginative answers to each problem he was presented with.
0:53:10 > 0:53:14However, there was one area he couldn't do much about.
0:53:14 > 0:53:19This is the garden area. It's not very big, but I've done my best with it.
0:53:19 > 0:53:25It was a muddy little strip before and I've put some plants in, some herbs and some pots. It does for me.
0:53:25 > 0:53:30In fact, Daniel completed most of the work here four years ago.
0:53:30 > 0:53:34What a great project for an architectural technician this was!
0:53:34 > 0:53:38When you're working for yourself, it's a lot more difficult
0:53:38 > 0:53:43because there's only one person involved, there's no-one to bounce ideas off.
0:53:43 > 0:53:47There's nobody to say, "No, I want to do it this way."
0:53:47 > 0:53:52You're the master of your own destiny. Sometimes that can work out and sometimes it doesn't.
0:53:52 > 0:53:56And in this case he had a bit of a split personality.
0:53:56 > 0:54:00On one hand, he was the architect, and on the other, the client.
0:54:00 > 0:54:05I was a terrible client. I started without the finance being in place.
0:54:05 > 0:54:09I changed my mind quite a lot, particularly through the design process.
0:54:09 > 0:54:12I had about five designs on the go.
0:54:12 > 0:54:18If I was the architect for myself, I'd be tearing my hair out and demanding lots more fees.
0:54:18 > 0:54:23A-ha, more fees! That suggests Daniel's £60,000 budget may not have been enough
0:54:23 > 0:54:25for this exacting client.
0:54:25 > 0:54:29I spent 64,000 with the main contractor
0:54:29 > 0:54:33and then I sort of lost track of the budget a little bit.
0:54:33 > 0:54:37I guess, at the end of the day, I've spent about 90 on it in total,
0:54:37 > 0:54:42so I've way exceeded the original, laughable budgets I came up with.
0:54:42 > 0:54:46He paid £100,000 for it at the auction
0:54:46 > 0:54:49and spent another £90,000 plus costs,
0:54:49 > 0:54:53so his outlay will have been close to £200,000.
0:54:53 > 0:54:58As the markets have been on a roller-coaster ride since he bought it five years ago,
0:54:58 > 0:55:03how has this unique property fared? What do two local estate agents think?
0:55:03 > 0:55:07It's a really pretty cottage. The gentleman's done a lovely job here.
0:55:07 > 0:55:12It's bright, spacious, even though it is a small cottage. I really like it.
0:55:12 > 0:55:16It's a great property. You've got a really good mix of old and new.
0:55:16 > 0:55:20And a tucked away location. A real hidden gem.
0:55:20 > 0:55:24It's been very thoughtfully designed, a good layout and it flows very well.
0:55:24 > 0:55:30The downside to the property could be the parking, but there's lots of on-street parking out there.
0:55:30 > 0:55:34And having no garden will hold the value.
0:55:35 > 0:55:41Does the lack of garden prevent Daniel reaping a return on his 200-grand investment?
0:55:43 > 0:55:48I would be marketing this property in the region of 195,000 to 200,000.
0:55:48 > 0:55:53I would be putting this property on the market for £200,000.
0:55:53 > 0:55:59That's probably about right for this market and it's certainly not more than I spent on the property,
0:55:59 > 0:56:01so I'm reasonably pleased with that.
0:56:01 > 0:56:05Hopefully, that might improve in a better financial climate.
0:56:08 > 0:56:12Initially then, this may not be a big money-spinner for Daniel,
0:56:12 > 0:56:16but the project was always about more than financial rewards.
0:56:16 > 0:56:23I love it. It's got a lot of my time, blood, sweat and tears in it, so I'm bound to, aren't I?
0:56:23 > 0:56:29Yes, this has been a great learning curve for Daniel and a chance to put his ideas into practice,
0:56:29 > 0:56:36but perhaps most important of all, he's ended up with a fantastic home he's completely in tune with.
0:56:39 > 0:56:43I hope you've enjoyed the triumphs and tribulations of today's show.
0:56:43 > 0:56:48- Join us next time for more Homes Under The Hammer.- See you then.- Bye.
0:57:04 > 0:57:08Subtitles by Subtext for Red Bee Media Ltd 2010
0:57:08 > 0:57:12Email subtitling@bbc.co.uk