0:00:02 > 0:00:05Hello. The weather is pretty warm today, but how do you tell
0:00:05 > 0:00:08- the temperature of the property market?- Sometimes it's difficult
0:00:08 > 0:00:13- to judge whether it's blowing hot or cold.- One way to find out is to go down to your local auction.
0:00:38 > 0:00:43When you go to an auction, you can soon tell whether there's confidence in the room
0:00:43 > 0:00:45or everyone's playing a cautious game.
0:00:45 > 0:00:50Mm, it's usually a very revealing snapshot of the current property market.
0:00:50 > 0:00:53Let's see what happened on today's programme.
0:00:54 > 0:00:59'In Stockport, Greater Manchester, there's a one-bed flat that looks tempting.'
0:00:59 > 0:01:03All in all, I think quite a lot of flat for the money.
0:01:04 > 0:01:08'There's a castle and house in Kent. Could there be treasure, too?'
0:01:08 > 0:01:13I'm still looking for those old, grade II listed, hidden features in this house.
0:01:14 > 0:01:18'And in Devon, there's a small bungalow where the real attraction is outside.'
0:01:20 > 0:01:23This side of the property, there are some amazing views.
0:01:25 > 0:01:28- 'All of these properties went to auction.'- 720.
0:01:28 > 0:01:34- 'We'll find out who bought them and what they paid when they went under the hammer.'- That's a nice house.
0:01:36 > 0:01:41'Our first property is in the borough of Stockport in Greater Manchester.
0:01:41 > 0:01:46'It's a great area to live with a real sense of community.
0:01:46 > 0:01:52'There are plenty of shops and railway stations handy for the 20-minute journey to Manchester.
0:01:52 > 0:01:57'All that and the airport's only a mile away. Noisy but nice.'
0:01:57 > 0:02:04I'm in Heald Green to see a one-bedroom flat in this building.
0:02:04 > 0:02:07The building itself is actually really interesting.
0:02:07 > 0:02:09It was initially a house, then a nursing home.
0:02:09 > 0:02:13It fell into disrepair. It was almost demolished to make way for an airport car park.
0:02:13 > 0:02:18And it's rumoured to be haunted! Crikey!
0:02:18 > 0:02:22'It's certainly an imposing building, haunted or not.
0:02:22 > 0:02:26'The property's now made up of a mixture of one and two-bedroom flats
0:02:26 > 0:02:28'and a communal hallway.
0:02:28 > 0:02:34'The one-bed flat I'm going to see is on the ground floor. Let's hope there's nothing too spooky inside.'
0:02:37 > 0:02:41Well, the guide price was 55,000 quid. What does that get you for the money?
0:02:41 > 0:02:45Er, well, it doesn't get you a carpet, that's for sure.
0:02:45 > 0:02:51But your corridor here, your bathroom and loo there, not a bad size, in reasonable condition.
0:02:51 > 0:02:56I love that, though. Your living room is a really nice space.
0:02:56 > 0:02:58Quite surprising for a one-bedroom flat.
0:02:58 > 0:03:04It gives the whole... It gives space to the whole unit. Superb.
0:03:04 > 0:03:06Down the corridor a bit more, into the kitchen.
0:03:06 > 0:03:09Not exactly huge but it's reasonably kitted out.
0:03:09 > 0:03:12Somebody's left the washing machine and everything.
0:03:12 > 0:03:17If you were renting this place out, I think you could leave this pretty much as it is.
0:03:17 > 0:03:21Which just leaves the bedroom, the one bedroom.
0:03:21 > 0:03:24But first, another nice to have, a cupboard there.
0:03:24 > 0:03:29In a flat like this, storage like that is always going to be at a premium.
0:03:29 > 0:03:35Bedroom itself, it's not huge, but all in all, I think quite a lot of flat for the money.
0:03:35 > 0:03:40'The flat's in a fairly manageable state. It could be perfect for a first-time buyer
0:03:40 > 0:03:43'as there's not much to do at all.
0:03:43 > 0:03:45'Let's take a look outside.'
0:03:46 > 0:03:52One of the nice things about the property is that it is situated in these fairly pleasant gardens.
0:03:52 > 0:03:55But, of course, whenever you buy a flat in a property like this,
0:03:55 > 0:04:00you must read the legal pack to make sure you're absolutely clear on what you're responsible for
0:04:00 > 0:04:05both in terms of maintenance of the building and the land around it.
0:04:05 > 0:04:11'The flat has a 999-year lease from 1985, so that's all fine.
0:04:11 > 0:04:13'There's a service charge of £50 a month.
0:04:13 > 0:04:19'The outside of the building looks in good condition and the communal land around is lovely,
0:04:19 > 0:04:22'but there is a noisy neighbour.'
0:04:24 > 0:04:28Well, the property is located very conveniently for Manchester Airport.
0:04:28 > 0:04:33Actually, a little too conveniently. It's right under the flight path.
0:04:33 > 0:04:35Not ideal.
0:04:35 > 0:04:40'So, all in all, an interesting property, even if it is on the flight path.
0:04:40 > 0:04:44'But, luckily, there's not just double but triple-glazing in place
0:04:44 > 0:04:47'to keep out the sound of those planes.
0:04:49 > 0:04:51'What does a local estate agent make of this flat
0:04:51 > 0:04:57'in a former nursing home that went to auction guided at £55,000?'
0:04:58 > 0:05:00It could probably do with a lick of paint.
0:05:00 > 0:05:04The grounds are fantastic, lovely gardens and plenty of parking.
0:05:04 > 0:05:09'But what about the proximity to the airport and the roar of those planes?'
0:05:11 > 0:05:15It is under the flight path, but you don't really notice it if you live in the area.
0:05:15 > 0:05:19You either love or hate it and I don't notice them at all, living in the area.
0:05:19 > 0:05:25'If your budget's tight, you could easily leave the kitchen and the bathroom. They're fine as they are.
0:05:25 > 0:05:29'But what would the advice be if you were looking to sell the property or rent it out?'
0:05:29 > 0:05:33I would probably give it a lick of paint, put some carpets in and rent it out.
0:05:33 > 0:05:38I would expect, once renovated, to get around £450 per calendar month.
0:05:38 > 0:05:42'If the budget was stretched to give the flat a full refurbishment,
0:05:42 > 0:05:46'what could the potential resale value be here once the work was finished?'
0:05:47 > 0:05:53I would expect to put this on the market, once renovated, at £75,000 to £80,000.
0:05:56 > 0:06:01There you go. A nice enough little flat in a good part of Manchester.
0:06:01 > 0:06:06Rental potential, not a bad place to live. Let's see who fancied it when it went under the hammer.
0:06:08 > 0:06:11We've got a telephone bid on this one, as well. OK.
0:06:11 > 0:06:13Vacant one-bedroom ground-floor apartment
0:06:13 > 0:06:19with a guide price of £55,000. Do I see 55,000 anywhere? 55 may I see?
0:06:19 > 0:06:2255, lady's bid at 55,000. Do I see 56?
0:06:22 > 0:06:2556? 56,000. 57, then?
0:06:25 > 0:06:28Lady's bid, 57. 58?
0:06:28 > 0:06:32Between two of you. 58. 59?
0:06:32 > 0:06:3459 now. May I say 60 on the phone?
0:06:34 > 0:06:38£60,000. At 60,000. 61, madam? No?
0:06:38 > 0:06:43At 60,000. It's in the market. I'm going to sell, you walk away, you don't get it. At 61. 61,000.
0:06:43 > 0:06:4562 may I say on the phone?
0:06:45 > 0:06:5061 and a half. 62. 62,000. 62 and a half?
0:06:50 > 0:06:5362,000 at the front, then, for the first time.
0:06:54 > 0:06:58At 62,000 for the second and final time. Are we all done at £62,000?
0:06:58 > 0:07:02- HAMMER BANGS - It's yours. Paddle number 46.
0:07:02 > 0:07:07'That final successful bid of £62,000 came from Mike.
0:07:07 > 0:07:12'He lives just ten minutes away and runs his own business.
0:07:12 > 0:07:18'He's delighted to have bought the flat, and made three visits before the auction to check it out.
0:07:19 > 0:07:24'I arranged to meet up with him back there to find out his plans.'
0:07:24 > 0:07:28- Mike, good to meet you.- Pleased to meet you.- Congratulations.- Thank you.
0:07:28 > 0:07:31Thank you for dressing up so splendidly for the interview.
0:07:31 > 0:07:37- I just thought I'd bring some glamour to your show.- Thank you! I don't think we've have a bow tie!
0:07:37 > 0:07:40It's lovely! Tell me, why did you want to buy it?
0:07:40 > 0:07:43I've been at my mother's for two years
0:07:43 > 0:07:46and I lost a house a few years ago
0:07:46 > 0:07:50and I've been basically just waiting to get back onto the property ladder
0:07:50 > 0:07:54and something that was affordable and not too big for myself.
0:07:54 > 0:07:56So why this one, other than the price?
0:07:56 > 0:08:01I like the area. It's close to where I have my own business
0:08:01 > 0:08:04There's the trains, the airport,
0:08:04 > 0:08:07and it's a nice location, really.
0:08:07 > 0:08:11What led you to this place in your life? What's your background?
0:08:11 > 0:08:14I have a waste disposal business
0:08:14 > 0:08:17and I just have two employees.
0:08:17 > 0:08:21It's a small little business and we clear out void properties
0:08:21 > 0:08:25and we clear up student properties,
0:08:25 > 0:08:28deaths, bereavements, we clear houses.
0:08:28 > 0:08:31- So you bought it for yourself to live in?- Yes.
0:08:31 > 0:08:35I bought the place as, basically, a bolt hole.
0:08:35 > 0:08:41And maybe, in a few years, I'll move out of it and think about renting it out.
0:08:41 > 0:08:46- So what are you going to do to sort it out?- Well, in the lounge,
0:08:46 > 0:08:50I'm going to drop the ceiling by a couple of inches and put some soundproofing in,
0:08:50 > 0:08:57because upstairs, when they're walking, there's a little bit of noise coming through the floor.
0:08:57 > 0:09:01I'm going to put some recessed lights into the ceiling.
0:09:01 > 0:09:07All the edge of the ceiling, I'm going to have cornice going round the edges.
0:09:07 > 0:09:10Right. And what about the triple-glazing?
0:09:10 > 0:09:13- The triple-glazing? - That's cos of the planes.
0:09:13 > 0:09:17Yeah. We do get the planes that fly over quite low,
0:09:17 > 0:09:21but it is relatively quiet, so the glazing's got to stay.
0:09:21 > 0:09:27- That's this room. What about the rest of the place? - We're going to put a new kitchen in
0:09:27 > 0:09:29and, again, cornice, sunken lights,
0:09:29 > 0:09:36some extra sockets, move the pipe work, et cetera, new flooring. And that's about it.
0:09:36 > 0:09:39'Mike also intends to add cornicing to the bathroom
0:09:39 > 0:09:42'which he would ideally like to make into a wet room.
0:09:42 > 0:09:48'But it seems he's most excited about his plans for the bedroom, or should I say boudoir?'
0:09:48 > 0:09:51I want to make the bedroom cosy and a fun place.
0:09:51 > 0:09:54I'm going to put fitted wardrobes,
0:09:54 > 0:09:59mirrored ceiling with lights that come down.
0:09:59 > 0:10:02My inspiration for that is Hugh Hefner.
0:10:02 > 0:10:04- He of Playboy fame?- Yeah, exactly.
0:10:04 > 0:10:10So I'm theming the property on Hugh Hefner
0:10:10 > 0:10:14and Austin Powers and Cliff Richard.
0:10:22 > 0:10:27'Well, those four plain walls are saying anything but "groovy, baby" at the moment.
0:10:27 > 0:10:33'Mike's certainly got his work cut out if he wants to create the bachelor pad he's dreaming of.'
0:10:33 > 0:10:39The Cliff Richard side, one of his great songs, All I Want To Be Is A Bachelor Boy.
0:10:39 > 0:10:41- HE LAUGHS - Oh, right.
0:10:41 > 0:10:46- I'm starting to believe that you're actually serious here. - Yeah, totally serious.
0:10:46 > 0:10:48It's going to be a totally unique flat.
0:10:48 > 0:10:52I want to enjoy the place for only a matter of a few years
0:10:52 > 0:10:58and then move on and, with a property like this, if it's got that X factor about it,
0:10:58 > 0:11:01it's going to be able to command a little bit more rent
0:11:01 > 0:11:05than something that was just a bog-standard one-bedroom flat.
0:11:05 > 0:11:10- It'll attract a certain kind of person.- Yeah, it'll probably attract other local playboys.
0:11:10 > 0:11:14- Right. Is that what you see yourself as?- Yeah, a bit of a playboy.- OK.
0:11:14 > 0:11:19Fair enough. How much money are you going to have to spend to get it to be like that?
0:11:19 > 0:11:23I'm estimating to do this for between 5 and 10.
0:11:23 > 0:11:26- Oh, what?- No, totally.
0:11:26 > 0:11:31Can you really achieve what you want to achieve with the flamboyance and dripping with whatever?
0:11:31 > 0:11:36100 percent. I have contacted a glass company about the mirrored ceiling in the bedroom
0:11:36 > 0:11:41and they're a specialist in that and they've told me they can put the lights into the ceiling.
0:11:41 > 0:11:46- Wow. Did they smirk when you asked? - They said that, within this area,
0:11:46 > 0:11:51they've had quite a few people who've asked for this particular service.
0:11:51 > 0:11:53'Mike's certainly got ambitious tastes.
0:11:53 > 0:11:57'I hope his budget can match them.'
0:11:57 > 0:12:02- So what about timescales? - I'm hoping to complete this in four weeks, five weeks.
0:12:02 > 0:12:07- Who's going to do the work? - Well, I've got a number of friends who are in the building business
0:12:07 > 0:12:12and my lads are going to do a bit of the ripping out and labouring
0:12:12 > 0:12:16and we're going to take out the bathroom and kitchen ourselves
0:12:16 > 0:12:20and then I'll call in the experts to do the joinery, electrics, et cetera.
0:12:20 > 0:12:28We'll have a lot of fun and I'm sure it'll be a new, neat property they've not worked on for a long time.
0:12:28 > 0:12:32So where did you get your...lovely attitude to life from?
0:12:32 > 0:12:35I've always been like that. I've always lived for today
0:12:35 > 0:12:38and I'm very laidback with everything.
0:12:38 > 0:12:42- I really can't wait to see this one! - Yeah, you'll be totally impressed!
0:12:42 > 0:12:47# He said, son, you are a bachelor boy
0:12:47 > 0:12:50# And that's the way to stay
0:12:50 > 0:12:54Well, that is one of the things I love about Homes Under The Hammer.
0:12:54 > 0:12:58You never know who you're going to meet and what they're going to do to the properties they buy.
0:12:58 > 0:13:03Can't wait to see how this one turns out. Join us later in the show to find out.
0:13:06 > 0:13:11'For the next property that went under the hammer, I'm in Stone near Dartford in Kent.'
0:13:11 > 0:13:14I'm quite excited about today!
0:13:14 > 0:13:21The village of Stone actually has its own castle. And there it is behind me. It's lovely.
0:13:21 > 0:13:24It was originally built in the mid-11th century.
0:13:24 > 0:13:30This castle has its own stable block behind, a detached cottage with it
0:13:30 > 0:13:35and nearly two and a half acres of land, and it all went to auction for the grand total
0:13:35 > 0:13:40of £700,000 to £750,000!
0:13:40 > 0:13:44That sounds like a huge bargain! Why do you think that is?
0:13:46 > 0:13:50Exactly! Because we're in the middle of a housing estate!
0:13:50 > 0:13:54'That guide price of £700,000 to £750,000
0:13:54 > 0:13:58'is still a lot of money, but you do get a castle!
0:13:58 > 0:14:04'And, as some neighbouring three and four-bedroom apartments were recently marketed at £380,000,
0:14:04 > 0:14:07'this property could be a real winner.
0:14:07 > 0:14:12'The castle's currently occupied by commercial tenants, so we couldn't film inside,
0:14:12 > 0:14:17'but from the outside, you can see this is one special lot worth storming the ramparts for.'
0:14:19 > 0:14:24The castle and the stable block over here have been converted into offices
0:14:24 > 0:14:27and are currently being let to long-term tenants,
0:14:27 > 0:14:30in situ for the next four years.
0:14:30 > 0:14:37Now, the landlord of this lot will rake in £47,000 in rent per year.
0:14:37 > 0:14:40Today, we're going to look around this detached cottage,
0:14:40 > 0:14:46and this property is soon to be vacant, and it's grade II listed. I'm going to get in and have a look.
0:14:46 > 0:14:51'It looks great from the outside and comes with a good size garden round the back.
0:14:51 > 0:14:54'I can't wait to see the character features inside.'
0:14:56 > 0:15:01So, this is the main reception room in the cottage. What have we got through here?
0:15:01 > 0:15:04Ah, another one to the left. Quite a big space through there.
0:15:04 > 0:15:06You could use that as a dining area, I suppose.
0:15:06 > 0:15:10And a bathroom off the living area.
0:15:10 > 0:15:13Not ideal, and it is the only bathroom in the house.
0:15:13 > 0:15:18And sadly, there's not as much character on the inside as I'd hoped.
0:15:18 > 0:15:21It's much better looking on the outside.
0:15:21 > 0:15:26There's the kitchen. So, it's situated at the back of the property.
0:15:26 > 0:15:31Not a huge space, and I really think it could do with an overhaul, some new units,
0:15:31 > 0:15:35it could do with being moved around a bit. You have got a beautiful feature window.
0:15:35 > 0:15:41But I'm still looking for those old, grade II listed, hidden features in this house.
0:15:42 > 0:15:45'Because the main castle is tenanted for the next four years,
0:15:45 > 0:15:50'it's only really the cottage you'd be able to alter and add value to.
0:15:50 > 0:15:54'The auction catalogue described the cottage as having two bedrooms.
0:15:54 > 0:15:59'Whether you use this as a tiny third bedroom or maybe a study, it's extra space.
0:15:59 > 0:16:03'Ideally, it would be great to move the bathroom up here.'
0:16:05 > 0:16:07Because this cottage is grade II listed,
0:16:07 > 0:16:11you'll need to get listed building consent from your local council
0:16:11 > 0:16:15if you want to alter the building in any way which might change its character.
0:16:15 > 0:16:18That also applies to the inside as well as out.
0:16:18 > 0:16:20So you can't go around knocking down walls,
0:16:20 > 0:16:23replacing those windows or pulling out fireplaces
0:16:23 > 0:16:27without getting the go-ahead from the conservation officer first.
0:16:27 > 0:16:32Now, it's actually a criminal offence to do unauthorised work on a listed building.
0:16:32 > 0:16:39You could be prosecuted and forced to reinstate all the altered features. You have been warned.
0:16:41 > 0:16:44'Time to speak to a local estate agent for a bit more information
0:16:44 > 0:16:47'about this very unusual lot that went to auction
0:16:47 > 0:16:51'guided at £700,000 to £750,000.'
0:16:51 > 0:16:54With the cottage itself, it's the only part that's residential.
0:16:54 > 0:16:57The rest of the castle is all now commercial.
0:16:57 > 0:17:01The car parking area for the castle itself
0:17:01 > 0:17:07is right outside the front door, so that could be off-putting to certain buyers or tenants.
0:17:07 > 0:17:12'The castle is already producing an income, but how much rental could the cottage generate?'
0:17:12 > 0:17:16The property itself, I understand it's currently let around about £650
0:17:16 > 0:17:22which is probably about the current rental market value for the property in its current condition.
0:17:22 > 0:17:24If it was to benefit from some modernisation,
0:17:24 > 0:17:29then we could look at perhaps increasing the rent to around £800 per calendar month.
0:17:29 > 0:17:35'Would it be possible to divide the castle and cottage and perhaps sell off the cottage separately?
0:17:35 > 0:17:38'How much could it be worth on its own once renovated?'
0:17:39 > 0:17:43If you were to renovate the property to a good standard,
0:17:43 > 0:17:48keeping the current accommodation as it is, perhaps put in a bathroom upstairs,
0:17:48 > 0:17:50you're probably looking in the early 200,000s.
0:17:50 > 0:17:56'What a fascinating auction lot. A real piece of local history.
0:17:56 > 0:17:58'Yes, it's slap-bang in the middle of a housing estate,
0:17:58 > 0:18:02'but you're also getting a very lucrative rental investment.'
0:18:02 > 0:18:08So, who wanted to be king of the castle? Let's find out when we head to auction.
0:18:08 > 0:18:12Lovely one here. Historic, grade II listed, freehold castle
0:18:12 > 0:18:16with a detached cottage in the 2.5 acres of grounds.
0:18:16 > 0:18:19Stunning building. Lots of interest in it.
0:18:19 > 0:18:23Where are we going to start? We've got a guide of 700 to 750.
0:18:23 > 0:18:27£700,000 do I see to start? 700 can I say?
0:18:27 > 0:18:30700,000 on my right at the back.
0:18:30 > 0:18:33At 700 I have. 720 now do I see?
0:18:33 > 0:18:35720 sitting down. 720 I have.
0:18:35 > 0:18:39740 now can I say? 40 I'm looking for.
0:18:39 > 0:18:43Are we all done? 740, I'm obliged. 760. 760.
0:18:43 > 0:18:46780. 780 now, it's against you.
0:18:46 > 0:18:50At £760,000 I have. 780 I want.
0:18:50 > 0:18:55Are we all done at 760? Loads of property there. A real stunning purchase.
0:18:55 > 0:18:59At £760,000 I will sell for the first time.
0:18:59 > 0:19:03£760,000 I'm selling for the second time.
0:19:03 > 0:19:05Should be worth a lot more than that.
0:19:05 > 0:19:10£760,000, you're all done. Third and final time, on the left-hand side.
0:19:10 > 0:19:14- All done? - HAMMER BANGS - 9178.
0:19:14 > 0:19:22'That final bid of £760,000 was made by entrepreneur and businessman Gilly.
0:19:23 > 0:19:26'He dabbles in property as a side line.
0:19:26 > 0:19:30'Gilly and his business partner, Bill, run a company which, among other things,
0:19:30 > 0:19:33'invests in renewable energy sources.
0:19:33 > 0:19:36'But their main business is commodity trading in the city.
0:19:36 > 0:19:41'I met them back in the chapel of their newly-acquired castle next to the cottage.'
0:19:44 > 0:19:47Guys, congratulations. You've bought yourselves a castle!
0:19:47 > 0:19:50What's the story behind you wanting to buy this, Gilly?
0:19:50 > 0:19:54Well, we went to the auction to buy another property, which was a shop.
0:19:54 > 0:19:58And we were flicking through the catalogue and we saw this castle.
0:19:58 > 0:20:02I love castles, because I've already got a castle in France,
0:20:02 > 0:20:06and I just said to Bill, "If it goes at decent money, we might as well buy it."
0:20:06 > 0:20:11- And that's what happened.- What is it about castles that you love and why do you need another one?
0:20:11 > 0:20:15I didn't really need another one, but the company is doing very well
0:20:15 > 0:20:19and we were looking for an investment and this was quite cheap.
0:20:19 > 0:20:23Bill, what I find amazing is, on this development site across the way,
0:20:23 > 0:20:25some of the flats were £380,000,
0:20:25 > 0:20:31and then you've just bought a castle, a cottage, acres of land, for £760,000.
0:20:31 > 0:20:34It's a no-brainer, isn't it?
0:20:34 > 0:20:36What did you think when you came onto this site?
0:20:36 > 0:20:41Obviously, you bid for this at auction, you'd seen a photograph in the auction catalogue,
0:20:41 > 0:20:44over there, brand new housing estate.
0:20:44 > 0:20:47Do you think that's detrimental to this building?
0:20:47 > 0:20:52We thought it was quite attractive as you drove up. The physical appearance of the castle
0:20:52 > 0:20:55as you drive up the drive was very warm and refreshing.
0:20:55 > 0:20:59It was quite exciting. It was like, "Wow!"
0:20:59 > 0:21:04I have to say, the interesting thing for me is, I like to see the beginning and end of a project.
0:21:04 > 0:21:08Is anything going to change in this castle over the next year?
0:21:08 > 0:21:13Not in the castle itself, but the cottage, that's all going to be changed.
0:21:13 > 0:21:16We're going to modernise that to a very, very high standard.
0:21:16 > 0:21:20We'll probably spend £50,000 to £100,000 doing it up.
0:21:20 > 0:21:23£50,000 to £100,000 on renovating the cottage?
0:21:23 > 0:21:28- Surely you can't spend that much on it.- We're going to put an extension on it, extend the back and side,
0:21:28 > 0:21:34try to make it into a three to four-bedroom. All depends on the permission from the council.
0:21:34 > 0:21:41They should be all right if we make it look old. That's why the cost is high, for specialist bricks.
0:21:41 > 0:21:47'So, Gilly bought this entire lot, castle and cottage, completely on a whim
0:21:47 > 0:21:50'without viewing it first or reading the legal pack.
0:21:50 > 0:21:55'And, with office tenants resident in the castle for the next four years,
0:21:55 > 0:21:58'you'd understand if he'd just raked in the rental income.
0:21:58 > 0:22:05'But his plans don't stop at just doing up the cottage. He's also got designs on the room we're in.'
0:22:05 > 0:22:10This place used to do weddings. This is the chapel and they used to do weddings,
0:22:10 > 0:22:14so we're going to do that, but where they used to do weddings in a tent,
0:22:14 > 0:22:16we've already approached the council
0:22:16 > 0:22:20and they're willing to sit down and talk to us about some schemes.
0:22:20 > 0:22:22'That's in the field at the back.
0:22:22 > 0:22:26'The ideas include a function room above a conference hall
0:22:26 > 0:22:30'and also an underground car park. Big plans indeed.'
0:22:31 > 0:22:37Can we throw some figures around? How much money do you think you're going to spend on this development?
0:22:37 > 0:22:43If we get the planning permission for the function hall and the banqueting
0:22:43 > 0:22:46and the conference centre, we're looking at a budget of about
0:22:46 > 0:22:50maybe £2 million to £3 million on getting that built up.
0:22:50 > 0:22:55'But before the ambitious wedding and conference centre can be built,
0:22:55 > 0:22:59'there will be a huge amount of planning and conservation red tape to wade through.
0:22:59 > 0:23:02'The castle's got tenants in it for four years,
0:23:02 > 0:23:06'but the cottage is vacant and crying out for refurbishment.'
0:23:06 > 0:23:11How is that pretty little cottage going to fit in with all of this?
0:23:11 > 0:23:16The amount of money we're going to spend on it, I don't think we're going to rent it out.
0:23:16 > 0:23:22We'll just use it for weekends. Once we do the weddings, we'll leave it as a honeymoon cottage for couples.
0:23:22 > 0:23:24We'll chip that in when they have the weddings here.
0:23:24 > 0:23:30Guys, this is an exciting one for me. Gilly, lovely to meet you. Well done. Bill, good luck.
0:23:34 > 0:23:40Gilly and Bill went to auction to buy a shop and came back with a castle! Like you do!
0:23:40 > 0:23:44And what is more, it's just another one to add to Gilly's growing collection.
0:23:44 > 0:23:47The guys have got ambitious ideas for this whole site
0:23:47 > 0:23:50and also grand plans for this little cottage.
0:23:50 > 0:23:54'It's going to be a few years before they can tackle the castle,
0:23:54 > 0:23:58'but we'll find out what they do to the cottage later on in the show.'
0:23:59 > 0:24:04'Coming up, this two-bed bungalow in Devon does have potential for an extension.'
0:24:04 > 0:24:08And you generate that much-needed space in the bungalow itself.
0:24:09 > 0:24:14'Nine months on, the new owners of this castle and cottage in Kent
0:24:14 > 0:24:17'have no regrets about their purchase.'
0:24:17 > 0:24:20We were in the right place at the right time. Very lucky.
0:24:20 > 0:24:26'But first, in Greater Manchester, has Mike worked hard on his bachelor pad?'
0:24:26 > 0:24:29I've had to project manage the whole flat by myself.
0:24:35 > 0:24:39'Earlier in the programme, we were in Heald Green, a suburb of Greater Manchester.
0:24:39 > 0:24:44'Local waste disposal businessman Mike had paid £62,000
0:24:44 > 0:24:48'for a ground-floor one-bed apartment in this unusual property,
0:24:48 > 0:24:52'which was under the Manchester Airport flight path.
0:24:58 > 0:25:03'Mike was going to transform the property into a groovy Austin Powers pad
0:25:03 > 0:25:07'with a touch of Hugh Hefner and Cliff Richard thrown in.
0:25:07 > 0:25:10'After living with his mum for the last few years,
0:25:10 > 0:25:16'Mike had grandiose plans to transform it into a stylish bachelor residence.'
0:25:16 > 0:25:19I want to make the bedroom cosy and a fun place
0:25:19 > 0:25:22and I'm going to put fitted wardrobes,
0:25:22 > 0:25:28a mirrored ceiling with lights that come down.
0:25:28 > 0:25:31I'm theming the property on Hugh Hefner
0:25:31 > 0:25:35and Austin Powers and Cliff Richard.
0:25:36 > 0:25:40'Now, just six weeks later, we're back in Manchester
0:25:40 > 0:25:43'and it looks like Mike's getting the drinks in ready for a house-warming.
0:25:43 > 0:25:48'But has he managed to turn it into a groovy pad?
0:25:52 > 0:25:57'Inside, Mike has transformed the living room into somewhere to relax with his friends.
0:25:57 > 0:26:02'And there's a very fancy fire which also shows pictures.
0:26:02 > 0:26:05'It looks like he's gone for a black and white theme for the room
0:26:05 > 0:26:08'with just a splash of colour.
0:26:10 > 0:26:16'The original kitchen wasn't bad, but Mike has refitted it with some bargain buys from the internet.
0:26:20 > 0:26:25'The bathroom has also been refurbished and the layout's changed
0:26:25 > 0:26:29'so you now soak in the bath on the other side of the room.
0:26:29 > 0:26:34'Mike has transformed the place. But what's been the story behind this speedy makeover?'
0:26:36 > 0:26:40I've actually added a few more things than I anticipated.
0:26:40 > 0:26:43It's just been little extras that I thought made a nice touch,
0:26:43 > 0:26:48like the gas fire in the chimney breast, changing the bathroom suite a little bit.
0:26:48 > 0:26:51I also put a new central-heating system in.
0:26:53 > 0:26:56'So Mike's bachelor pad has got a kitchen to prepare the party food
0:26:56 > 0:26:59'and a lounge to entertain his guests.
0:26:59 > 0:27:02'But every playboy needs a bedroom.
0:27:02 > 0:27:04'So how did his boudoir turn out?
0:27:07 > 0:27:13'Thankfully, the mirror's on the wall, not on the ceiling. I was expecting a few more down lights.
0:27:13 > 0:27:16'So why the change of heart?'
0:27:16 > 0:27:23I tried to open it up a little bit, to make it a bigger room than it actually is.
0:27:23 > 0:27:29'I agree, it does open up the room, even if it is a far cry from what he originally planned.
0:27:29 > 0:27:34'It's lovely, but despite the mirrored wardrobes and red leather bed,
0:27:34 > 0:27:39'I have to say, after his original promises, it's not what I was expecting.
0:27:39 > 0:27:44'Moving swiftly on, it's time to reflect on the changes Mike has made in the kitchen.'
0:27:44 > 0:27:49Originally, we had the cooker here, we had a small fridge
0:27:49 > 0:27:52and we had the washing machine in this corner.
0:27:52 > 0:28:00We've put the washing machine into the hallway to create more space, so we've got this fridge freezer.
0:28:00 > 0:28:07'It all makes practical sense. And Mike made some pretty impressive savings on the kitchen units.'
0:28:07 > 0:28:10I got the kitchen off an auction site.
0:28:10 > 0:28:16It was £120 and it included the worktops, the sink, the plinths, et cetera.
0:28:16 > 0:28:19So that was my best buy of the flat.
0:28:19 > 0:28:24Then I got the fridge freezer from another auction site,
0:28:24 > 0:28:26which was 140 quid.
0:28:26 > 0:28:31We've had a new boiler, which was about £1,400.
0:28:31 > 0:28:33But that was the biggest expense of the flat.
0:28:34 > 0:28:39'A lesson there for anyone. Don't be put off it you're on a tight budget.
0:28:39 > 0:28:42'And as Mike's proven, with some shrewd internet buys,
0:28:42 > 0:28:46'you can still refurbish your property to a good standard.
0:28:47 > 0:28:50'But how much has Mike's total budget stretched to?
0:28:50 > 0:28:54'Did he manage to keep within the £5,000 to £10,000 he'd allowed?'
0:28:55 > 0:28:59I did expect to spend 10, but I've spent about £7,000.
0:28:59 > 0:29:05If it wasn't for the kitchen, we would've put another £2,000 on the bill.
0:29:05 > 0:29:09'Clearly Mike's been watching the budget. But who's been doing the work?'
0:29:10 > 0:29:14I've had to project manage the whole flat by myself.
0:29:14 > 0:29:18I've had a couple of electricians, a couple of plumbers,
0:29:18 > 0:29:20and I've also had two plasterers.
0:29:20 > 0:29:24So it's just been a bit hectic. A little bit stressful.
0:29:24 > 0:29:28'But has it all been worth it for this bachelor boy?
0:29:28 > 0:29:32'How long does Mike see himself living here? Is this his ideal home?'
0:29:32 > 0:29:36No, it's not my dream bachelor pad. There's a Jacuzzi missing.
0:29:36 > 0:29:39But it'll certainly do for the next six months.
0:29:39 > 0:29:41# Son, you are a bachelor boy
0:29:41 > 0:29:45# And that's the way to stay
0:29:45 > 0:29:47I plan to rent it out next year
0:29:47 > 0:29:53and then, eventually, I'm going to use the property as a deposit to buy another property.
0:29:54 > 0:29:58'Given Mike's long-term plans to rent out and eventually sell on,
0:29:58 > 0:30:02'it's not surprising he decided to tone down his plans for the flat.
0:30:02 > 0:30:05'The style he's gone for, and lack of a mirrored ceiling,
0:30:05 > 0:30:10'should make it much more attractive to potential tenants and buyers in the long run.
0:30:11 > 0:30:15'We invited two local estate agents to take a look
0:30:15 > 0:30:18'at Mike's one-bedroom flat conversion.
0:30:18 > 0:30:20'What will they make of the finish here?'
0:30:20 > 0:30:24I think he's done it to a very nice standard. He's certainly improved it.
0:30:24 > 0:30:27The bathroom's excellent, modern suite with a bath-shower,
0:30:27 > 0:30:29nice lighting, modern colours.
0:30:29 > 0:30:33I like the kitchen in that, while it's not the biggest kitchen,
0:30:33 > 0:30:35we must remember it is a one-bedroom flat
0:30:35 > 0:30:39and that size is in keeping with the property.
0:30:39 > 0:30:44The kitchen's very nice. Nice units, plenty of working space. It's a nice, compact kitchen.
0:30:44 > 0:30:49I think this property would appeal to a single person, being a one-bedroom flat.
0:30:49 > 0:30:52Its location's handy for the airport and Manchester City Centre.
0:30:52 > 0:30:57I would expect to achieve, in the rental market, between £450 and £500 per calendar month.
0:30:57 > 0:31:03If I was renting this property out, I'd look to put it on the market at £550 to £600 per calendar month.
0:31:05 > 0:31:11'What does Mike think of those figures? Did he realise his bachelor pad could generate such an income?'
0:31:11 > 0:31:17I had no idea, living at Mum's and paying 25 quid a week.
0:31:17 > 0:31:21I'm surprised how much people charge on the rental market. That's amazing.
0:31:21 > 0:31:25'Remember, he paid £62,000 at auction
0:31:25 > 0:31:28'and spent £7,000 doing it up.
0:31:28 > 0:31:33'That's a total spend of £69,000. So what's it worth now?'
0:31:33 > 0:31:38If I was to place the property on the market, I'd expect it to achieve £75,000.
0:31:38 > 0:31:45If I was putting this property on the market for sale, I would expect £65,000, maybe touching £70,000.
0:31:45 > 0:31:50'That valuation range of between £65,000 and £75,000
0:31:50 > 0:31:55'represents a loss for Mike of £4,000 or a profit of up to £6,000.
0:31:55 > 0:31:58'What does he think of that?'
0:31:59 > 0:32:03I think that 65 is a bit harsh, to be quite honest.
0:32:03 > 0:32:07The 75,000 I think is realistic.
0:32:07 > 0:32:11I'm quite happy with selling it for 75,000.
0:32:11 > 0:32:16I think it's certainly worth 75, 80. It's all about what somebody will pay.
0:32:16 > 0:32:20'That's right. And don't forget, it's only taken Mike six weeks
0:32:20 > 0:32:23'to turn a potential profit on this place.
0:32:24 > 0:32:30'And, for this, his first project, Mike thinks he's got it just about right.'
0:32:30 > 0:32:34There's always the thing of how much you spend, and you can't overspend,
0:32:34 > 0:32:39and I feel as if, with this, it's appealing to somebody a little bit older
0:32:39 > 0:32:45and it's also appealing to somebody even younger, so I think I've cornered two bits of the market.
0:32:52 > 0:32:56'I'm in the Devon market town of Newton Abbot.
0:32:56 > 0:33:02'Without a doubt, the real highlight of this place has to be the annual cheese and onion fayre.
0:33:02 > 0:33:08'No, really. So the question is, will today's property be a tasty treat or make your eyes water?'
0:33:10 > 0:33:14Well, just outside the town, it is bungalow central.
0:33:14 > 0:33:18And there's nothing wrong with that. They cater really well
0:33:18 > 0:33:23for the slightly older generation who move to Devon for the sea air and the beautiful climate.
0:33:23 > 0:33:27So, what was up for auction? Well, it's this specimen.
0:33:27 > 0:33:32Had at guide price of 145,000 quid, two bedrooms, let's take a look.
0:33:32 > 0:33:37# Lazing on a sunny afternoon
0:33:37 > 0:33:43'It's certainly a beautiful spot for a bungalow. The street itself is also lovely and leafy,
0:33:43 > 0:33:47'so the stresses and hassles of the real world seem a long way away.'
0:33:49 > 0:33:54So, what's the accommodation that's on offer in this particular property?
0:33:54 > 0:33:58Er, well, it's not exactly massive when you walk through the front door,
0:33:58 > 0:34:01that's the first impression you get. Fairly standard layout.
0:34:01 > 0:34:05Kitchen there. Not in too bad condition, to be fair.
0:34:05 > 0:34:09Bathroom there. And then through to your main living area.
0:34:09 > 0:34:12I mean, it's clean, it's tidy, it needs a bit of refreshment
0:34:12 > 0:34:17and it's obviously fairly dated, but you're not expecting massive amounts of space
0:34:17 > 0:34:19and you don't get them,
0:34:19 > 0:34:25but it's made up for by the fact that, certainly out of the windows of this side,
0:34:25 > 0:34:27there are some amazing views.
0:34:28 > 0:34:33'Although it's dinky inside, the vista makes it feel vast.
0:34:33 > 0:34:36'So, coupled with the fact there's a good patch of front garden,
0:34:36 > 0:34:40'it's a lot more private and less pokey than I thought it might be.
0:34:40 > 0:34:45'The place isn't in bad nick, either, and the bathroom has just been redone.
0:34:45 > 0:34:48'In fact, I can't see an awful lot to do here,
0:34:48 > 0:34:53'though I suppose you could try and make it just a little bit bigger.'
0:34:54 > 0:34:57So, what to do about the smallness?
0:34:57 > 0:35:02Well, the good news is, at the rear of the property, there's this pretty decent-size garden
0:35:02 > 0:35:06and also this monstrosity of a garage, which I would suggest you take down,
0:35:06 > 0:35:11increase the size of the garden and create an area at the back that's ripe for an extension,
0:35:11 > 0:35:17which is exactly what the next-door neighbours have done. Bring the living space towards the rear,
0:35:17 > 0:35:21you get open access into the garden here, really nice, you get the sunshine,
0:35:21 > 0:35:27and you generate that much-needed space in the bungalow itself without sacrificing too much space outside.
0:35:27 > 0:35:29# Sunny
0:35:29 > 0:35:34'Sorted. You might not get those splendid views, but the outlook at the back isn't half bad,
0:35:34 > 0:35:38'and it would make much more of the outside space.'
0:35:38 > 0:35:42Well, while you're thinking about an extension, why not think bigger,
0:35:42 > 0:35:45or, more specifically, higher?
0:35:45 > 0:35:50Lots of bungalows along this street have gone for a dormer conversion. So is that a good thing to do?
0:35:50 > 0:35:54Well, it'd certainly create a room with a spectacular view.
0:35:54 > 0:35:58But from adding value onto the bungalow point of view?
0:35:58 > 0:36:03Well, the ceiling price for a semi-detached bungalow around here is around £190,000,
0:36:03 > 0:36:09so if you got the bungalow for 145, you've got £45,000 to play with. It's not much.
0:36:09 > 0:36:12So, if you're doing it for yourself, then yes,
0:36:12 > 0:36:15if you're doing it to make money, it's touch and go.
0:36:15 > 0:36:19'This place certainly has bags of potential.
0:36:19 > 0:36:21'So, with that guide price of £145,000,
0:36:21 > 0:36:25'it's time to hear the opinion of a local estate agent.'
0:36:26 > 0:36:29The area around here is very popular with a majority of people.
0:36:29 > 0:36:32You get some families around here and also retiring people
0:36:32 > 0:36:36coming to live in the bungalows locally. I think the property
0:36:36 > 0:36:40would benefit from just really tidying up what is already here.
0:36:40 > 0:36:44The best thing would be to leave it as it is and make good of what is here.
0:36:44 > 0:36:48'Once renovated, could this be a viable rental unit?'
0:36:49 > 0:36:54I think this would be a very good property to rent out. It would appeal to quite a lot of people.
0:36:54 > 0:36:57You'd be looking at couples or people with a small child.
0:36:57 > 0:37:02In terms of value for the property, I think you'd achieve between £600 and £650 per calendar month.
0:37:02 > 0:37:05'What about its resale value?'
0:37:05 > 0:37:08In today's market, I think the property's worth £150,000.
0:37:08 > 0:37:13If it was fully renovated, I'd be looking at between £175,000 and £180,000.
0:37:13 > 0:37:17'If the new owner built an extension, how much value could that add?'
0:37:17 > 0:37:20I think if you were looking at extending the property,
0:37:20 > 0:37:23I don't know whether you'd push the value up by too much.
0:37:23 > 0:37:26You'd be looking at a maximum of £190,000.
0:37:26 > 0:37:31Well, it's location that counts, and in this case, the property couldn't be much better located.
0:37:31 > 0:37:35Close to the town, great views, and in this lovely community.
0:37:35 > 0:37:39That's why bungalows are popular and it deserves its guide price.
0:37:39 > 0:37:41Let's see who bought it at the auction.
0:37:43 > 0:37:47Two-bedroom semi-detached bungalow. That's going to tick a lot of boxes.
0:37:47 > 0:37:50How about 140 straight in?
0:37:50 > 0:37:52140 straight in.
0:37:52 > 0:37:55How about 130, then?
0:37:56 > 0:38:00130. Happy to stand my ground at 130.
0:38:00 > 0:38:04130, thank you. 130. At 130.
0:38:04 > 0:38:06If you're happy... I'm sure he's happy! 130.
0:38:06 > 0:38:10At 130 for lot 35. 130 once, then.
0:38:10 > 0:38:13At 130 twice. At 132.
0:38:13 > 0:38:15134.
0:38:15 > 0:38:17What can I do? 136.
0:38:17 > 0:38:19136.
0:38:19 > 0:38:22137? 137.
0:38:22 > 0:38:24138. 138.
0:38:24 > 0:38:27You're in, 139. 139.
0:38:27 > 0:38:29140.
0:38:29 > 0:38:32140 I've got. At 140.
0:38:32 > 0:38:35A half somewhere? 140, then, on my right.
0:38:35 > 0:38:39You're missing that bungalow. At 140, first, second, third and last time. Here we go.
0:38:39 > 0:38:43At 140 and done. Sir, yours. Well done.
0:38:43 > 0:38:49'That successful bid of 140,000, which was £5,000 under the guide price,
0:38:49 > 0:38:52'came from former car dealer Steve.
0:38:53 > 0:38:58'I met him at the bungalow to find out what had got him revved up about it.'
0:38:58 > 0:39:02- Steve, good to meet you.- Hi. - Congratulations.- Thank you.
0:39:02 > 0:39:06- Tell me why you wanted to buy the bungalow. - I wanted to buy some property
0:39:06 > 0:39:11and this looked like quite a good property cos it's quite close to where I live, to do up and rent out.
0:39:11 > 0:39:13Is this something you've done before?
0:39:13 > 0:39:19No, not to rent out, but I have bought quite a few properties in the past for myself.
0:39:19 > 0:39:22So what tempted you into the world of buy-to-let?
0:39:22 > 0:39:29Really, it's to have an income. I've had some money in savings, which is making no interest at all,
0:39:29 > 0:39:32and talking to people, it seemed the right thing to do.
0:39:32 > 0:39:36- What's your background? - My background is the motor trade. - Oh, right!
0:39:36 > 0:39:41- I was in dealerships and car sales for many, many years.- Fantastic.
0:39:41 > 0:39:44Did you venture into the auction world while you were doing that?
0:39:44 > 0:39:50Yes, quite a bit. We bought at closed auctions quite a few nearly-new second-hand cars.
0:39:50 > 0:39:56Did you bring any of the techniques from your motor auctioning days into the property auctions?
0:39:56 > 0:40:00Only researching and setting a top price.
0:40:00 > 0:40:04Exactly the same as you do in the trade, you know when to stop bidding
0:40:04 > 0:40:08- and you don't get carried away and emotional. - Did you manage to adhere to that?
0:40:08 > 0:40:10Yes, that's why I only bought this one.
0:40:10 > 0:40:14'Smart cookie Steve certainly seems to know what he's doing.
0:40:14 > 0:40:19'Let that be a lesson to us all to keep emotions under wraps when at auction
0:40:19 > 0:40:24'or risk driving up the price and accelerating past the top of your budget.'
0:40:24 > 0:40:27Tell me exactly what you're going to do with it.
0:40:27 > 0:40:31The kitchen needs completely demolishing. It's old and fuddy-duddy.
0:40:31 > 0:40:37There's what you might call a pantry, that needs knocking out to make a bigger kitchen.
0:40:37 > 0:40:40In here, we have to get rid of the gas fire
0:40:40 > 0:40:43and we need to strip the wallpaper off, new flooring,
0:40:43 > 0:40:46and make it fresher and more modern.
0:40:46 > 0:40:51- The bedrooms aren't too bad, it's just basically upgrading. - What about outside?
0:40:51 > 0:40:56Outside, it's just freshening up. We need to jet-wash the gutters.
0:40:56 > 0:41:00We need to rub the paint down and repaint the exterior.
0:41:00 > 0:41:03But the good thing is, it's got UPVC double glazing throughout,
0:41:03 > 0:41:06so it is only masonry paint we're doing.
0:41:06 > 0:41:10The drive is awful, it's got cracks everywhere with grass growing up.
0:41:10 > 0:41:14That needs sorting out. And the garden's just overgrown,
0:41:14 > 0:41:18as you'd expect with a property that's been unoccupied for some time.
0:41:18 > 0:41:23'Steve's left no stone unturned when assessing what he's got to do with this place.'
0:41:23 > 0:41:25# You are safe with me
0:41:25 > 0:41:28# In the eye of the storm
0:41:28 > 0:41:32'It's not often that I hear jet-washing the gutters and pulling up weeds on the driveway
0:41:32 > 0:41:35'featuring on lists of things to do.
0:41:35 > 0:41:39'So often, these are the little details that get overlooked
0:41:39 > 0:41:42'and end up adding to the timescale and budget.
0:41:42 > 0:41:48'And although Steve's got a very sensible three-month schedule, he won't let anything slow him down.'
0:41:48 > 0:41:52- What's the budget for the work? - We think around £8,000 to £8,500,
0:41:52 > 0:41:56but we might need to add a little bit more as a contingency.
0:41:56 > 0:42:00But it is just upgrading, so it's nothing too major.
0:42:00 > 0:42:05There is one thing you could potentially do, which is add a dormer in or extend.
0:42:05 > 0:42:10- Is that something you've considered? - I think I would do that if I was moving in here myself
0:42:10 > 0:42:14to expand the property, but for the rental market, it's not a good investment.
0:42:14 > 0:42:18- What next for you? - A lot of work here, actually, over the summer period.
0:42:18 > 0:42:22And then, once this project's completed, what then?
0:42:22 > 0:42:24We'll look at one or two more.
0:42:24 > 0:42:30We've bought a couple of industrial unit recently, so we're going to rent those out.
0:42:30 > 0:42:34But they don't need anything doing to them. So we're going to be busy this year.
0:42:34 > 0:42:38So what's the advantage of industrial units?
0:42:38 > 0:42:42I think it's more a case of how useful they are,
0:42:42 > 0:42:48whereas this will be sold on how nice it looks, and so on.
0:42:48 > 0:42:52- Congratulations. Good luck. - Thank you.- Look forward to seeing how you get on.
0:42:52 > 0:42:57Well, Steve has got himself a solid little bungalow in a nice area.
0:42:57 > 0:43:00Still, there's work to do to sort it out.
0:43:00 > 0:43:04And will those rental income figures match his expectations?
0:43:04 > 0:43:07You can find out later in the show.
0:43:09 > 0:43:14It's time to go back to those properties and see how their owners got on.
0:43:14 > 0:43:19Have they managed to stick to their timescales and budgets? Let's find out.
0:43:21 > 0:43:24'Time now to return to Kent. Earlier in the programme,
0:43:24 > 0:43:29'this grade II listed castle and cottage and about 2.5 acres of land
0:43:29 > 0:43:34'were bought by Gilly, on the left here, for £760,000.
0:43:34 > 0:43:38'He owns a company that produces environmentally-friendly energy.
0:43:38 > 0:43:42'His director, Bill, was with him at the auction and did the bidding.
0:43:42 > 0:43:45'But their main business is commodity trading in the city.
0:43:45 > 0:43:51'The castle had a wedding licence, and although it came already tenanted for the next four years,
0:43:51 > 0:43:54'Gilly's long-term plan was to convert it into a hotel
0:43:54 > 0:43:58'and build a new wedding and conference centre on the adjoining land.
0:43:58 > 0:44:01'But it was in the cottage where initial work was to begin.'
0:44:03 > 0:44:07The amount of money we're spending on it, I don't think we're going to rent it out.
0:44:07 > 0:44:12We'll just use it for weekends. Once we do the weddings, we'll leave them with a honeymoon cottage.
0:44:12 > 0:44:14We'll chip it in when they have the wedding here.
0:44:15 > 0:44:21'Eight months later, we returned to see how the conversion had gone and how the cottage looks.
0:44:22 > 0:44:28'As Gilly unexpectedly had to fly to Italy on business, it was Bill who was our guide.
0:44:28 > 0:44:32'Outside, there doesn't seem to be any sign of an extension to the cottage.
0:44:35 > 0:44:40'But inside, the kitchen has been totally refitted.
0:44:44 > 0:44:48'While upstairs, the back bedroom is now an office.
0:44:53 > 0:44:56'And the former small box room is now a bathroom.
0:44:58 > 0:45:05'But it's downstairs where the plans for the luxury cottage have really changed, as Bill explains.'
0:45:06 > 0:45:09When we first came here, there was a big wall here.
0:45:09 > 0:45:13That wall's been now removed. Obviously, we put a lot of wood flooring in here.
0:45:13 > 0:45:17We will retain the windows, as well, because it's a grade II listed building
0:45:17 > 0:45:20so the windows still need to remain wooden windows.
0:45:20 > 0:45:25And, of course, you can see the lighting up here is now also different from what it was before.
0:45:25 > 0:45:30We've got plasma screens going on that wall over there, there'll be a settee over there,
0:45:30 > 0:45:35and all the presentations can be done in-house onto a plasma screen.
0:45:35 > 0:45:40'It's very impressive. The grade II listed cottage is now a high-tech office for Gilly,
0:45:40 > 0:45:44'Bill and their team of commodity traders, who can work inside
0:45:44 > 0:45:47'or take their laptops outside.'
0:45:48 > 0:45:55Well, as you can see, you are stepping onto fantastic decking, which wasn't here before.
0:45:55 > 0:46:00And the garden was a complete mess when we walked in here.
0:46:00 > 0:46:04There was no fencing here at all. And the idea is to create this whole thing
0:46:04 > 0:46:09into a fantastic entertainment place for entertaining our clients.
0:46:09 > 0:46:17'What about all those grand plans for a multi-million-pound conference centre with underground parking?'
0:46:17 > 0:46:21As far as the plans for the conference centre are concerned,
0:46:21 > 0:46:25we weren't aware of the buildings that have gone on behind us here,
0:46:25 > 0:46:28and keeping that in mind, I think we'll have a problem
0:46:28 > 0:46:32with putting a conference centre up. So we're putting those plans on hold.
0:46:32 > 0:46:36'Frustrating. And there's been even more bad news.
0:46:36 > 0:46:39'A licence for weddings in the castle chapel expired,
0:46:39 > 0:46:43'so they're now using the chapel as their company's boardroom.
0:46:43 > 0:46:49'But at least Gilly's £760,000 investment has secured a cottage, a castle
0:46:49 > 0:46:52'and about 2.5 acres of land.
0:46:52 > 0:46:57'Apart from the chapel in the castle, it's only the cottage that's seen any real change.
0:46:57 > 0:47:01'So how much has it cost to convert the property?'
0:47:01 > 0:47:05We've spent something in the region of about £35,000
0:47:05 > 0:47:09on just materials, just getting so far.
0:47:09 > 0:47:17I think if you put labour cost into it, it's in a region of £45,000, £50,000 or there abouts.
0:47:17 > 0:47:21'We invited two local estate agents to have a look at the cottage.
0:47:21 > 0:47:25'One of them specialises in commercial properties.
0:47:25 > 0:47:30'So, was the conversion of the former residential cottage a good idea?'
0:47:31 > 0:47:34I think it's all very nicely done, it's a nice standard of finish,
0:47:34 > 0:47:39companies could move straight in here and start working straightaway.
0:47:39 > 0:47:42I think the owners have done a good refurbishment.
0:47:42 > 0:47:45The standard is good. It's interesting that
0:47:45 > 0:47:47it's now for commercial use,
0:47:47 > 0:47:50when their original intentions were residential.
0:47:50 > 0:47:56The one thing I particularly like is the fact they've utilised the space upstairs for another en suite.
0:47:56 > 0:48:02Having two bathrooms upstairs is possibly a bit of a luxury for office use.
0:48:02 > 0:48:08Perhaps it may have been better to keep the en suite as an office or a storage room.
0:48:08 > 0:48:11But other than that, it's all good.
0:48:11 > 0:48:17'Remember, Gilly paid £760,000 for the property and land.
0:48:17 > 0:48:21'They've got grand plans to convert the castle into a hotel, but that's some years off,
0:48:21 > 0:48:24'as the tenants have four years left on their lease.'
0:48:25 > 0:48:27'They've already spent about £50,000,
0:48:27 > 0:48:31'but what's the cottage now worth, either as a residential property
0:48:31 > 0:48:34'or in its current commercial state?'
0:48:35 > 0:48:40If the owners were to get planning permission to sell it as a residential property again,
0:48:40 > 0:48:45I would suggest a marketing price, in the current climate, in the region of £275,000.
0:48:45 > 0:48:48It's a very unusual property from a business sale point of view.
0:48:48 > 0:48:53It's not the sort of thing that comes along every day, so it would need to find its own level,
0:48:53 > 0:48:58but the figures suggest quite a low-sounding number, in the order of £150,000 to £160,000
0:48:58 > 0:49:00for the freehold of the building.
0:49:00 > 0:49:05'So, that commercial valuation range of £150,000 to £160,000
0:49:05 > 0:49:12'is over £100,000 less than the £2750,000 valuation
0:49:12 > 0:49:15'if the cottage was returned to residential use.
0:49:15 > 0:49:20'That's largely due to the relatively small size of this as a commercial property,
0:49:20 > 0:49:24'as office valuations are calculated by the square foot.'
0:49:24 > 0:49:28I think the valuations are fairly standard.
0:49:28 > 0:49:30We were aware of those kind of figures.
0:49:30 > 0:49:36The added value of this whole thing is much, much more than the tangible value
0:49:36 > 0:49:40in terms of selling it next month or next year.
0:49:40 > 0:49:45'No, this is a long-term investment, and the castle could prove a real asset
0:49:45 > 0:49:48'if they do eventually convert it into a hotel.
0:49:48 > 0:49:51'But the big bonus has been this fabulous working environment,
0:49:51 > 0:49:55'where Bill and Gilly's team have been relocated.
0:49:55 > 0:49:57'So has it been a good outcome so far?'
0:49:57 > 0:49:59Absolutely. 100 percent.
0:49:59 > 0:50:03I think we were in the right place the right time. We've been very lucky.
0:50:03 > 0:50:06'And what next?'
0:50:06 > 0:50:10The next thing is to bring loads of our clients here
0:50:10 > 0:50:15and have lots of parties and that's when the fun starts, I think.
0:50:23 > 0:50:29'Back to Newton Abbot in Devon now, where this two-bedroom semi-detached bungalow sold for £140,000,
0:50:29 > 0:50:33'£5,000 below the guide price.
0:50:33 > 0:50:38'Second-hand car dealer Steve bought it and was able to use some hard and fast auction experience
0:50:38 > 0:50:41'for his first dip into property developing.'
0:50:43 > 0:50:45Exactly the same as you do in the trade,
0:50:45 > 0:50:49you know when to stop bidding and you don't get carried away and emotional.
0:50:49 > 0:50:53- And did you manage to adhere to that?- Yes, that's why I only bought this one.
0:50:54 > 0:50:59'Steve was planning to rent out the bungalow. Five months later,
0:50:59 > 0:51:03'we returned to see if he'd managed to supe up this tired jalopy
0:51:03 > 0:51:05'into a shiny new motor.
0:51:07 > 0:51:12'Well, from outside, a fresh lick of paint and cleaned-up gutters
0:51:12 > 0:51:16'have done a good job of adding some kerb appeal. Inside...
0:51:18 > 0:51:23'..and the living room has been freshened up and it looks as though Steve now has some tenants
0:51:23 > 0:51:26'who are giving the place seasonal cheer.
0:51:26 > 0:51:29'But have his other changes also cheered up this bungalow?'
0:51:38 > 0:51:42Well, lots has happened in the kitchen.
0:51:42 > 0:51:46We found out when we started taking tiles off and looking at the units
0:51:46 > 0:51:49that the best thing was for everything to go.
0:51:49 > 0:51:52I remember knocking the tiles away here
0:51:52 > 0:51:55and a huge lump of plaster came out.
0:51:55 > 0:51:59So we needed to reinstate the plaster. Then we decided that everything,
0:51:59 > 0:52:04including the walls and underneath, needed tiling, so we tiled the whole lot.
0:52:04 > 0:52:11We put units in. They're new units, and new sink and worktops.
0:52:11 > 0:52:14And over here, we had the pantry,
0:52:14 > 0:52:18which was taking the space right up to here.
0:52:18 > 0:52:22Of course, we took the wall out to increase the size of the kitchen.
0:52:22 > 0:52:25That created a few more problems.
0:52:25 > 0:52:30We had the situation where the ceiling just dropped down and so we had to do something with the ceiling.
0:52:30 > 0:52:36But we also found the wall levels were all different, so we needed to pack them out with plasterboard
0:52:36 > 0:52:40and plaster them before we could fit the units and do the tiling.
0:52:40 > 0:52:44As you can see now, you wouldn't know there'd been a pantry here.
0:52:44 > 0:52:48'It's certainly a more practical space now.
0:52:48 > 0:52:51'Elsewhere, the bathroom was in good nick,
0:52:51 > 0:52:54'although Steve has wisely added a shower unit.
0:52:54 > 0:52:58'The two bedrooms have been redecorated in fresh magnolia
0:52:58 > 0:53:00'and new carpets have been laid.
0:53:01 > 0:53:06'The hall, kitchen and bathroom have also got new vinyl flooring.
0:53:06 > 0:53:11'So, in all, it looks to have been a straightforward refurbishment.'
0:53:11 > 0:53:14The state of the property looked, at face value, OK,
0:53:14 > 0:53:17but it hadn't had any real maintenance or care
0:53:17 > 0:53:20for probably 20, 25 years.
0:53:20 > 0:53:23So when we started looking, we found gas leaks,
0:53:23 > 0:53:26we found problems with floorboards
0:53:26 > 0:53:31and so there was quite a few small, but not major, jobs to do.
0:53:31 > 0:53:35'The lounge needed replastering, there were some electrics to be sorted
0:53:35 > 0:53:37'and that garden had to be tidied up.
0:53:37 > 0:53:43'But the end result is a very decent renovation which, unfortunately, took up more of Steve's time
0:53:43 > 0:53:45'than he had anticipated.'
0:53:45 > 0:53:50Through the summer, I'm a very keen sailor, and I've wanted to be out on the water sailing
0:53:50 > 0:53:53and I've had to come here many times and work over the weekends,
0:53:53 > 0:53:57so it's basically been a weekend project through the summer months.
0:53:57 > 0:54:03'In fact, it took four months, a month longer than Steve's original estimate of three,
0:54:03 > 0:54:08'to finally complete the renovation. But did the changes mean he had to sail close to the wind
0:54:08 > 0:54:11'on his original budget of £8,500?'
0:54:11 > 0:54:18Because we did some quite cute buying, going round the DIYs to get the best price,
0:54:18 > 0:54:21we were able to complete the whole project
0:54:21 > 0:54:23for around £5,500.
0:54:23 > 0:54:28Also, some of that has to be down to the fact that we used friends and relations
0:54:28 > 0:54:31to do much of the work.
0:54:31 > 0:54:33'Ah, that old mates'-rates trick!
0:54:33 > 0:54:37'But Steve's done a nifty job of hunting down bargains
0:54:37 > 0:54:41'and getting the costs down to that £5,500.
0:54:41 > 0:54:44'Including his purchase price of £140,000,
0:54:44 > 0:54:48'his total outlay was £145,500.
0:54:48 > 0:54:52'And it didn't take long to start earning some of that money back.'
0:54:53 > 0:54:59We asked an agent to come and have a look, and before it was even completed,
0:54:59 > 0:55:03they'd shown some people round and some nice people have moved into the property.
0:55:05 > 0:55:08'But has Steve made the best of this bungalow?
0:55:08 > 0:55:14'Bearing in mind his total spend of £145,500,
0:55:14 > 0:55:18'we asked two local estate agents what they thought of his renovation.'
0:55:18 > 0:55:21Coming back to look at the property a second time round,
0:55:21 > 0:55:24you can see a big difference. The property looks a lot fresher
0:55:24 > 0:55:27and more up-to-date than it did when we first came.
0:55:27 > 0:55:30My first impression of the bungalow is that it's just about right
0:55:30 > 0:55:34in every respect. The standard of work is pretty good.
0:55:34 > 0:55:37Some nice touches, some nice contemporary tastes
0:55:37 > 0:55:40without going too wacky for a semi-detached bungalow.
0:55:40 > 0:55:43I think the standard of work is very good.
0:55:43 > 0:55:46You can see that they've made an effort in tidying up every room
0:55:46 > 0:55:48and it looks really fresh throughout.
0:55:50 > 0:55:54'Both estate agents reckon that renting the bungalow out is currently the best option.
0:55:54 > 0:55:57'But is Steve getting the best out of his investment?
0:55:57 > 0:56:00'What sort of rental income could he earn?
0:56:01 > 0:56:05I'd expect to achieve about £600 per calendar month.
0:56:05 > 0:56:10If the property were to go up for rent, we'd be looking at £600 to £650 per calendar month.
0:56:10 > 0:56:13We have a rental of £650 a month.
0:56:13 > 0:56:18'So, Steve's getting a respectable five percent annual yield for this bungalow.
0:56:18 > 0:56:21'But if he ever decides to sell, the estate agents reckon
0:56:21 > 0:56:25'he could achieve a possible £170,000.
0:56:25 > 0:56:28'Bearing in mind his outlay of £145,500
0:56:28 > 0:56:33'that could mean a potential pre-tax profit of around £24,000.
0:56:33 > 0:56:36'So, with this bungalow proving to be a nice little earner,
0:56:36 > 0:56:38'what's his next step?'
0:56:42 > 0:56:46To take a break for six months and then try to do it all over again.
0:56:50 > 0:56:55Well, we'll have more excitement and action, passion and problems from the auction room next time.
0:56:55 > 0:57:00- So make sure you join us then for those heady highs and lousy lows. See you then.- Goodbye.
0:57:02 > 0:57:06Subtitles by Red Bee Media Ltd
0:57:06 > 0:57:10E-mail subtitling@bbc.co.uk