0:00:02 > 0:00:06Hello. People buy property for all sorts of different reasons.
0:00:06 > 0:00:12- It could be as an investment or a place to live.- And the main concern is getting value for money.
0:00:12 > 0:00:16One way to do that is by buying under the hammer.
0:00:40 > 0:00:47- You do need to do your homework if you buy at auction.- But you could find a real diamond in the rough.
0:00:47 > 0:00:50Here are the potential money spinners today.
0:00:52 > 0:00:58'In Timperley, I find an arresting little number with its own police record.'
0:00:58 > 0:01:00'ello, 'ello, what's going on?
0:01:01 > 0:01:05'In this south London flat, there's an unexpected bonus.'
0:01:05 > 0:01:11Even better, you've got that huge garden and it all belongs to this flat.
0:01:12 > 0:01:17'And on the edge of the Peak District, there's a bungalow with really big ideas.'
0:01:17 > 0:01:23It's also got planning permission to add another storey. That could make some money.
0:01:24 > 0:01:30All these properties have been sold at auction. We'll find out who bought them and what they paid
0:01:30 > 0:01:32when they went under the hammer.
0:01:35 > 0:01:43'I'm in Timperley, Greater Manchester, seven miles from the city centre, five from the airport.
0:01:43 > 0:01:50'It's a popular area and the lot I'm here to see sounds like it should be in a TV cop show.'
0:01:50 > 0:01:56I'm here in Timperley to see a property sold on behalf of Greater Manchester Police Authority.
0:01:56 > 0:02:00So is it a great big old police station with blue lights and cells?
0:02:00 > 0:02:05Well, sadly not. It's this rather run-down three-bed semi,
0:02:05 > 0:02:11actually used to house the local bobby. But it had a guide price of £120,000-£150,000.
0:02:11 > 0:02:13Let's take a look inside.
0:02:15 > 0:02:22'Apparently, the house has been empty for a while, hence its rather tatty exterior,
0:02:22 > 0:02:27'but there's off-street parking, double-glazed UPVC windows and a large back garden,
0:02:27 > 0:02:30'so there's already a few bonuses.'
0:02:31 > 0:02:34'ello, 'ello, what's going on?
0:02:34 > 0:02:38Well, it's not too bad. The thing about these houses is they're solid.
0:02:38 > 0:02:43When you come through into it, you get that feeling.
0:02:43 > 0:02:47It obviously is in need of a bit of tender, loving care,
0:02:47 > 0:02:51but good-sized rooms. This goes from the front to the rear.
0:02:51 > 0:02:57I'd like some patio doors, but apart from that I'm looking forward to seeing what else there is.
0:02:58 > 0:03:03'No signs of police cells or interrogation rooms,
0:03:03 > 0:03:08'buy beyond needing a revamp it all seems in pretty good nick.'
0:03:09 > 0:03:14So into the kitchen and again a pretty decent-sized space.
0:03:14 > 0:03:18Nice views onto the garden there, but again needs tender, loving care.
0:03:18 > 0:03:25You need to replace all these units, but there's space for a dining table and to make it into a family space.
0:03:25 > 0:03:29I'm much more excited about this area out the back.
0:03:29 > 0:03:34It's a single-storey... What would you call this? A sort of extension.
0:03:34 > 0:03:38You've got a storage area there, a downstairs loo
0:03:38 > 0:03:45and here the only bit of the property that is vaguely something to do with its former life.
0:03:45 > 0:03:49This is actually, believe it or not, the police office.
0:03:49 > 0:03:55What this does give me is an idea that maybe an extension is the way to go with this.
0:03:55 > 0:03:58Either single-storey or, even better, double-storey.
0:03:59 > 0:04:06'You don't have to be an expert in police surveillance to see that a number of neighbouring properties
0:04:06 > 0:04:12'have pretty elaborate extensions so the precedent is set with the local planners,
0:04:12 > 0:04:16'but before we get carried away there's another floor to check out.'
0:04:16 > 0:04:22So upstairs you've got the bathroom, two really good-sized double bedrooms and a single.
0:04:22 > 0:04:26All that's good. What isn't so pleasant is this.
0:04:26 > 0:04:28Serious...
0:04:28 > 0:04:30..nasty...
0:04:32 > 0:04:33..damp.
0:04:33 > 0:04:38However, I think the reason for that is actually quite simple.
0:04:41 > 0:04:47As I've said lots of times before, houses aren't that complicated when it comes down to it.
0:04:47 > 0:04:54The first thing to look for if you see damp is something stopping the water going away.
0:04:54 > 0:04:59Look up at the guttering. It's full of foliage. Bits of grass,
0:04:59 > 0:05:05all this stuff growing up, this ivy. That'll be blocked, water will be cascading down.
0:05:05 > 0:05:09It's probably the same throughout the entire house, the down pipe.
0:05:09 > 0:05:15All in all, just do something, refurbish that lot and it goes away.
0:05:15 > 0:05:19'How's that for a bit of detective work?
0:05:19 > 0:05:23'OK, so he may not be wearing a Hawaiian shirt,
0:05:23 > 0:05:27'but this is the auctioneer who sold the property.
0:05:27 > 0:05:32'We gave him a light grilling to see what he could tell us about it.'
0:05:32 > 0:05:36The property has lots of potential. It's been vacant for a while,
0:05:36 > 0:05:39but there's potential for extension
0:05:39 > 0:05:44to the side, where a ground and first floor would be appropriate,
0:05:44 > 0:05:50and there seems to be other properties with second-floor extensions as well, so into the loft.
0:05:50 > 0:05:52If it was mine, I'd look at those.
0:05:52 > 0:05:57'What level of rental return might you expect after doing an extension
0:05:57 > 0:06:01'or first off, just tidying up what's here?
0:06:01 > 0:06:06It could be renovated as it stands and it would rent fairly easily.
0:06:06 > 0:06:11If that was done, the rental value would probably be £650-£700 per calendar month.
0:06:11 > 0:06:18If a side extension was put on or even a second-floor extension, that could increase to £750-£800.
0:06:18 > 0:06:25'Bearing in mind that the guide price was for this property was £120,000-£150,000
0:06:25 > 0:06:30'what might it fetch if it were put up for sale after being renovated?'
0:06:30 > 0:06:34From a resale point of view, if renovated as it stands,
0:06:34 > 0:06:38I would think the value could be £175,000-£200,000.
0:06:38 > 0:06:45If a side extension was put on, or a second-floor extension, you could approach £250,000.
0:06:45 > 0:06:50Well, this old police house isn't exactly a fair cop.
0:06:50 > 0:06:54Lots of work to do to modernise it and you've got that damp problem,
0:06:54 > 0:06:58but intrinsically it's a good property that could make money.
0:06:58 > 0:07:05If somebody bought it for a steal, they're on to a winner. Let's see what happened under the hammer.
0:07:07 > 0:07:11Lot 97. A vacant, three-bedroom residential property.
0:07:11 > 0:07:14£100,000 do we see anywhere?
0:07:14 > 0:07:19100? Straight in, I've got it. Gentleman sat down. 105 do we see?
0:07:19 > 0:07:25105 I've got here. 110? I've got it. 115? I've got it.
0:07:25 > 0:07:28120? I've got it. 125?
0:07:28 > 0:07:32Take 2. Does that help you? It does. 122. 124?
0:07:32 > 0:07:37OK, 122 with you. I'll take 1. Does that help anybody?
0:07:37 > 0:07:40It does. Gentleman on my left. 123.
0:07:40 > 0:07:43124 now? 124 I've got. 125?
0:07:43 > 0:07:48Two bids at the same time. I'm going to take paddle 691 at 125.
0:07:48 > 0:07:52There's a gentleman further back. I've got 125. Is that 126?
0:07:52 > 0:07:59Yeah, 126. Gentleman in the dark top. 126 I've got. New bidder. 127. We've got 127 there. 128?
0:07:59 > 0:08:03128 is back in. 129, then? I've got it.
0:08:03 > 0:08:06130? 130 I've got.
0:08:06 > 0:08:08131? I've got it. 132?
0:08:09 > 0:08:12Yeah, 132 I've got. 133?
0:08:12 > 0:08:15I've got it. 134? Yes.
0:08:15 > 0:08:18135? And I've got it. 136?
0:08:18 > 0:08:21Yes. 137. 138, then?
0:08:21 > 0:08:24138 I've got. 139?
0:08:25 > 0:08:28139 I've got. 140?
0:08:29 > 0:08:32Yes, 140 I've got. 141, then?
0:08:32 > 0:08:34141, we've got it. 142?
0:08:34 > 0:08:39Is that a half, sir? You're out altogether? OK.
0:08:39 > 0:08:46141, gentleman on the phone, sat on my left. Are we all finished? At £141,000.
0:08:46 > 0:08:51First time at 141. Second time at 141. Third and final time.
0:08:51 > 0:08:53Your paddle number, please... 629.
0:08:53 > 0:09:00'The successful bid of £141,000 was made by Sean who attended the auction with his wife.
0:09:00 > 0:09:04'He has had his finger in a number of pies over the years.
0:09:04 > 0:09:10'Most recently he's sold the franchise of a well-known takeaway food chain.'
0:09:10 > 0:09:16# When the moon hits your eye like a big pizza pie That's amore... #
0:09:16 > 0:09:21'I met up with him to find out his plans for this old police house.'
0:09:21 > 0:09:26# Like you've had too much wine That's amore... #
0:09:26 > 0:09:33- Sean, good to meet you.- Hi, Martin. - Congratulations. Tell me why you wanted to buy this place.
0:09:33 > 0:09:38Em, basically, I've just recently sold a company with my nephew
0:09:38 > 0:09:40and we had some spare cash to invest.
0:09:40 > 0:09:43I have some property already.
0:09:43 > 0:09:49And now seemed like a good time with the dip in the market to reinvest and come back in.
0:09:49 > 0:09:53Great. Was that company something to do with property?
0:09:53 > 0:09:57- No, actually, it was a pizza company. - Right.
0:09:57 > 0:10:02- You owned a franchise?- That's right. - How long ago did you buy that?
0:10:02 > 0:10:06Seven years ago we bought that. My nephew, who's based in Scotland,
0:10:06 > 0:10:12has been running the business and I was a silent partner as I have another job
0:10:12 > 0:10:18running a disaster recovery company. So, basically, that involves damaged properties.
0:10:18 > 0:10:24So I've been involved with owning or renovating property or restoring properties following fire and floods
0:10:24 > 0:10:28for about 15 years. It seemed a natural thing to do.
0:10:28 > 0:10:33'Disaster recovery, eh? Sounds like we have a real, live Thunderbird.
0:10:35 > 0:10:41'But Sean's background dealing with fire and flood damage means that this project
0:10:41 > 0:10:47- 'should be a walk in the park. He's aiming high.- I have an architect. We've got some plans.
0:10:47 > 0:10:52We'll apply for planning permission. I've got a two-pronged approach.
0:10:52 > 0:10:58I can put an extension on within the permitted development scheme
0:10:58 > 0:11:01and start work immediately, which I will do.
0:11:01 > 0:11:08I'll put footings in for a double-storey extension, but build a single-storey one.
0:11:08 > 0:11:13Hopefully, permission will come through for a double-storey and we'll carry on up.
0:11:13 > 0:11:16If not, I may just stick.
0:11:16 > 0:11:20'I like the sound of this two-pronged approach
0:11:20 > 0:11:24'and, fingers crossed, the planners approve this double-storey scheme.
0:11:24 > 0:11:29'But Sean also has designs on the existing accommodation.'
0:11:29 > 0:11:33We'll take the walls out in here and turn this into the dining room,
0:11:33 > 0:11:38- put some patio doors in to bring the garden into the house.- Wow.
0:11:38 > 0:11:43Refurbish the living room, take the chimney breast out, probably the chimney,
0:11:43 > 0:11:49board the loft to allow whoever buys it to convert the loft. I won't do that.
0:11:49 > 0:11:54We'll certainly do the extension. There's not enough living space for a family.
0:11:54 > 0:12:00- Lots of work, then. - Yeah, quite a bit of work.
0:12:00 > 0:12:08- Have you got any idea of cost? - I initially had a budget of around £30,000-£35,000,
0:12:08 > 0:12:14but we did better than expected at the auction, so I've got a little bit of cash to play with,
0:12:14 > 0:12:18- but I think around £40,000. - That's quite a reasonable budget.
0:12:18 > 0:12:24- Hopefully.- What about timescales? - We're hoping to complete it in four months,
0:12:24 > 0:12:29so the market is buoyant again. It's a bit flat at the moment.
0:12:29 > 0:12:32Then hopefully we'll sell it.
0:12:32 > 0:12:38- So the plan is to do it up and sell it on?- Absolutely. I don't think the rental yields
0:12:38 > 0:12:42versus the value of the house are viable.
0:12:42 > 0:12:46Congratulations. I look forward to seeing how you get on.
0:12:46 > 0:12:51Well, from pizza to property. How do you top that?
0:12:51 > 0:12:57Well, Sean's certainly got experience, but this is his first residential development.
0:12:57 > 0:13:02So how is he going to get on and will he make any dough?
0:13:02 > 0:13:05You can find out later in the show.
0:13:08 > 0:13:11'I'm in Streatham, southwest London.
0:13:12 > 0:13:18'Between the First and Second World Wars, it developed a reputation as a location for entertainment,
0:13:18 > 0:13:22'which earned it the nickname the West End of south London.
0:13:22 > 0:13:30'With a great mix of apartments and family houses, it also has excellent transport connections.'
0:13:30 > 0:13:34We are really close to the train station. It's just behind here
0:13:34 > 0:13:40and we're a mile from the Tube, which is Balham. So for a guide price of just £295,000
0:13:40 > 0:13:46there's not one, but two properties as this building has already been divided up into two flats.
0:13:46 > 0:13:50You'd normally pay that for just one flat around here.
0:13:50 > 0:13:58First impressions are good. It's a substantial property, three storeys, and the windows and roof are redone.
0:13:58 > 0:14:02That's a bonus. I'm going to go inside for a look.
0:14:02 > 0:14:07'Both the flats have separate entrances on the side
0:14:07 > 0:14:12'so let's start with flat number one on the ground floor.'
0:14:12 > 0:14:16This is flat number one. It seems to veer off in different directions.
0:14:16 > 0:14:22You've got a kitchen there, a big long corridor towards the front
0:14:22 > 0:14:26and then a sitting room and around here is a bathroom with white suite
0:14:26 > 0:14:31and the only bedroom in the property. It has space.
0:14:31 > 0:14:37You've got lovely high ceilings, but what I really like to see are these.
0:14:37 > 0:14:41New wooden double-glazed windows. They look so nice on this property.
0:14:41 > 0:14:48And, even better, you've got that huge garden and it all belongs to this flat.
0:14:49 > 0:14:56'The flat has yet another attractive feature - a very large sitting room at the front.
0:14:56 > 0:15:02'So there's spacious accommodation and the flat doesn't even need much doing to it.
0:15:02 > 0:15:07'A little sprucing up, some redecoration and this place is ready to go.
0:15:07 > 0:15:14'What about the other half of this auction lot? Flat number two, upstairs.'
0:15:14 > 0:15:18This is a lot bigger. It feels a lot more spacious.
0:15:18 > 0:15:24You've got a long corridor, a big sitting room. It kind of mirrors downstairs.
0:15:24 > 0:15:30It does need a lot of work doing. We've got a separate toilet, a bathroom and a bedroom.
0:15:30 > 0:15:35There's a few more bedrooms upstairs. I'm going to investigate.
0:15:35 > 0:15:41'There's a rather dated kitchen on this floor which needs a complete refit.
0:15:41 > 0:15:47'I might be tempted to knock through into the neighbouring sitting room for an open-plan living area.
0:15:47 > 0:15:52'Carrying on up to the third floor, we find two double bedrooms.
0:15:52 > 0:15:56'The first one in particular is a really good size,
0:15:56 > 0:16:03'but there's potential to add even more space and value by claiming back some roof space.'
0:16:03 > 0:16:08Here is a little piece of information. In October, 2008,
0:16:08 > 0:16:15the planning rules changed so you can now make improvements without getting planning permission.
0:16:15 > 0:16:22You can do a loft conversion if it doesn't exceed the cubic content of the original roof space
0:16:22 > 0:16:24by more than 50 metres.
0:16:24 > 0:16:30So good news, you'd think. However, the rules only apply to houses, not flats.
0:16:30 > 0:16:36So for this property, you'd still have to go through the whole planning process
0:16:36 > 0:16:43to go up into that loft. 'However, since developing that loft space will add value,
0:16:43 > 0:16:49'it would probably be worth someone's time and energy to get permission sorted.
0:16:49 > 0:16:53'That's still not the end of the story here.'
0:16:53 > 0:16:58If you planned to sell these flats on separately, there's a problem.
0:16:58 > 0:17:02They are currently registered as one dwelling, one house.
0:17:02 > 0:17:08So you've got a few legal hoops to jump through. You'd have to register them as two separate flats
0:17:08 > 0:17:13and hopefully the fact that you've got established use will mean no issues with the planners.
0:17:13 > 0:17:19Once that's done, you can then create a separate lease for each and sell them individually.
0:17:19 > 0:17:26It is a bit of hassle and it will cost in legal fees, but it's definitely worth it.
0:17:26 > 0:17:29'To discover a bit more about the opportunity here,
0:17:29 > 0:17:33'we asked a local estate agent for his take on it.
0:17:33 > 0:17:37'It had a guide price of £295,000.
0:17:37 > 0:17:40'How could you maximise the potential here?'
0:17:40 > 0:17:47The important thing here is that you apply for planning to go into the loft and the rear.
0:17:47 > 0:17:51This is a great area for rental, so I would anticipate getting
0:17:51 > 0:17:54£1,000 per calendar month for the ground floor flat
0:17:54 > 0:17:58and perhaps £1,500-£1,600 for the upstairs flat.
0:17:58 > 0:18:02'What about selling the flats once renovated?'
0:18:02 > 0:18:07Doing the flats up for resale, you're probably looking at values
0:18:07 > 0:18:14of the ground-floor, one-bedroom garden flat achieving towards £250,000.
0:18:14 > 0:18:19If you were to extend the property, making a two-bedroom flat, you'd increase the value
0:18:19 > 0:18:23and that would fetch in the region of £325,000 or so.
0:18:23 > 0:18:29The upper flat could fetch as much as £375,000.
0:18:29 > 0:18:34So two flats - one that you could rent straight away and the other one needs some work.
0:18:34 > 0:18:39Let's find out who fancied these at the auction.
0:18:39 > 0:18:42Lot 70. Well-located semi-detached house.
0:18:42 > 0:18:46Two self-contained flats.
0:18:46 > 0:18:48I don't know - 300?
0:18:48 > 0:18:54- If not, you tell me.- 270. - OK, we'll start there. 270 I've got.
0:18:54 > 0:18:57How much? OK, 280.
0:18:57 > 0:18:59285? 285. 290?
0:18:59 > 0:19:02295. 300.
0:19:03 > 0:19:05315? 330?
0:19:06 > 0:19:10345. 350.
0:19:10 > 0:19:12375?
0:19:12 > 0:19:15380 at the back. 385.
0:19:16 > 0:19:18385. 390.
0:19:18 > 0:19:24'With a lot of interest in this property, we rejoin the auction at £420,000 -
0:19:24 > 0:19:29'already a massive £125,000 over the guide price.'
0:19:30 > 0:19:32420, sir. 421.
0:19:32 > 0:19:33No?
0:19:33 > 0:19:37420 for the first... 421 in a new place.
0:19:37 > 0:19:40Nearly. 422.
0:19:40 > 0:19:43423. 424.
0:19:43 > 0:19:44425.
0:19:44 > 0:19:46One more?
0:19:46 > 0:19:48425, back in.
0:19:48 > 0:19:51426. 427?
0:19:51 > 0:19:55You said that last time. 426 for the first.
0:19:55 > 0:19:57426 for the second.
0:19:57 > 0:20:00426 for the third and final time.
0:20:00 > 0:20:04All done. Sold. 426, well bought.
0:20:04 > 0:20:10'Well, that bidding battle was eventually won by London developer Paul.
0:20:10 > 0:20:16'Not so long ago he worked in sales and marketing. He has a couple of properties already,
0:20:16 > 0:20:20'but this is quite a big project for somebody relatively new.
0:20:20 > 0:20:23'I met Paul back at his purchase to find out more.'
0:20:24 > 0:20:31You've got so much space in this room. Now, Paul, cast your mind back to auction day.
0:20:31 > 0:20:34Tell me how you came to buy these.
0:20:34 > 0:20:38I suppose I'd been going to auctions for a little while.
0:20:38 > 0:20:42I'd been looking from afar. I'd gone to bid on a couple of occasions,
0:20:42 > 0:20:45but been totally outbid very quickly.
0:20:45 > 0:20:51And I took the view that it would be interesting to do a development that perhaps had
0:20:51 > 0:20:57more than one property within it. It might appeal to just developers, not owner occupiers.
0:20:57 > 0:21:03- Is your background in property? - Only recently. It's a relatively new change of career.
0:21:03 > 0:21:06I've got a corporate background
0:21:06 > 0:21:09and just decided I'd finally do something I really loved.
0:21:09 > 0:21:13What was it about property?
0:21:13 > 0:21:15I think I'm a wannabe architect.
0:21:15 > 0:21:21I just would have loved... I like changing things around, improving old properties.
0:21:21 > 0:21:23I've lived in old properties.
0:21:23 > 0:21:30'So did Paul follow the advice we always give to do your research properly?'
0:21:30 > 0:21:32It was an odd one.
0:21:32 > 0:21:38I normally do a fair amount of research, a lot of online data for finding out street prices.
0:21:38 > 0:21:43I have a place just round the corner, so I'm familiar with prices here,
0:21:43 > 0:21:48but it was an odd one on the day. I only saw the upper flat.
0:21:48 > 0:21:51The lower flat, there was some confusion over access.
0:21:51 > 0:21:55'It's never ideal if you don't see all of the property.
0:21:55 > 0:22:00'Luckily for Paul, downstairs doesn't need as much work.'
0:22:00 > 0:22:04- Ok, so you're a wannabe architect. - I am.
0:22:04 > 0:22:09Paul's vision. What did you see when you walked in? Let's start with downstairs.
0:22:09 > 0:22:14Howe can you change it? There's lots of space, but one little bedroom.
0:22:14 > 0:22:19Exactly. And it felt such a waste. There's a big garden at the back.
0:22:19 > 0:22:22Lovely living space, high ceilings.
0:22:22 > 0:22:28I imagine that being opened up into the kitchen. I like the thought of it being split level,
0:22:28 > 0:22:35so I'm going to steal a bedroom from the upper flat, put a staircase in and have a two-bedroom flat
0:22:35 > 0:22:39- on a split level.- Wow! Stairs. - Stairs will go in, yeah.
0:22:39 > 0:22:42Where will you put the stairs?
0:22:42 > 0:22:49We've got partition walling at the back, so it shouldn't be a problem to drop those walls fairly easily.
0:22:49 > 0:22:55We'll eat away at the bathroom, take away the room in the bedroom, then reconfigure the bedrooms.
0:22:55 > 0:22:59- Between the bedroom and bathroom, really.- That's right, yeah.
0:22:59 > 0:23:05'So a new staircase from the ground floor flat will give access to the rear bedroom,
0:23:05 > 0:23:09'which will then be part of the downstairs accommodation.
0:23:09 > 0:23:15'But Paul will keep three bedrooms in the top flat by converting the loft into a new third bedroom.'
0:23:15 > 0:23:20Where does that leave flat number two? How will you jig it around?
0:23:20 > 0:23:24This one's more difficult. There's practical issues.
0:23:24 > 0:23:29The bathrooms are quite low down, we may need new boilers.
0:23:29 > 0:23:34In terms of the layout, we've still got plenty of space.
0:23:34 > 0:23:39So the fact that there are not two separate leases didn't worry you?
0:23:39 > 0:23:43No, I've already spoken to my solicitor about splitting the lease.
0:23:43 > 0:23:45How long do you foresee this taking?
0:23:45 > 0:23:49Planning's the big issue. If we can get through the planning,
0:23:49 > 0:23:54- then I think the build for both flats within six months.- And budget?
0:23:54 > 0:23:56Er, flexible.
0:23:56 > 0:24:02Dependent on what we're given, really. We have to sit down and keep totting up the figures.
0:24:02 > 0:24:04I suspect £100,000.
0:24:04 > 0:24:11- Paul, it's been lovely meeting you. - And you.- Good luck. It'll be very interesting.- I look forward to it.
0:24:11 > 0:24:17Paul is still relatively new to the developing game, but that is not going to stop him.
0:24:17 > 0:24:23He's got great plans for these flats. He's checked out the economics and is raring to go.
0:24:23 > 0:24:29But will he get planning permission? You can find out what happens later on in the programme.
0:24:29 > 0:24:34'Coming up: there's some dated decor in this Duffield bungalow.'
0:24:34 > 0:24:38What's on offer? A nice bit of parquet flooring for a start(!)
0:24:39 > 0:24:43'In Streatham, Paul has a big decision to make.'
0:24:43 > 0:24:49This is what I do as a living, but there is also an element of a labour of love.
0:24:51 > 0:24:57'But first we track down that ex-police house near Manchester to see if it's a reformed character.'
0:24:57 > 0:24:59Nothing has been left untouched.
0:25:02 > 0:25:07'We've returned to Timperley on the outskirts of Manchester.
0:25:07 > 0:25:12'After the police had no further use for the house, it lay empty for a couple of years until Sean booked it
0:25:12 > 0:25:15'for £141,000 at auction.
0:25:15 > 0:25:23'He'd set aside £40,000 to refurbish it and was planning to build big and build high.'
0:25:23 > 0:25:27I can put an extension on within the permitted development scheme
0:25:27 > 0:25:32and can start work immediately. What I'll do is put footings in the extension
0:25:32 > 0:25:36for a double-storey extension, but build single-storey.
0:25:36 > 0:25:40Hopefully, planning permission will come through for a double-storey.
0:25:40 > 0:25:45'We've come back six months later to see how Sean got on.
0:25:48 > 0:25:52'He's got that double height extension all right
0:25:52 > 0:25:54'and the house is now huge.
0:26:02 > 0:26:08'What was once a series of small, cramped rooms is now big, bright and beautiful.'
0:26:11 > 0:26:13We've completely gutted the house.
0:26:13 > 0:26:17We basically took it back to the bricks and just two walls.
0:26:17 > 0:26:22We took all the internal walls out. We've added a two-storey extension.
0:26:22 > 0:26:27We've replumbed, we've rewired. Nothing has been left untouched.
0:26:31 > 0:26:33We're in the new part now.
0:26:33 > 0:26:40What we've done is move from where the old kitchen was. We have a brand-new kitchen, open-plan.
0:26:40 > 0:26:47In this part of the building, we've built a utility room to house the washing machine and the boiler.
0:26:47 > 0:26:51We've also managed to squeeze in a downstairs toilet.
0:26:51 > 0:26:57'The old enclosed staircase has been ripped out for solid wooden treads.
0:26:59 > 0:27:02'Glass panels will be fitted as banisters.'
0:27:04 > 0:27:10So, basically, what we've done is move the bathroom from the old part of the house
0:27:10 > 0:27:14into this new area. We've built a bigger bathroom than we had before.
0:27:14 > 0:27:20We've managed to incorporate a walk-in wet room and added a good-sized double bedroom.
0:27:20 > 0:27:26It's added about 30% to the floor space on the upper floor.
0:27:26 > 0:27:29We're very pleased with the quality of the finish we've achieved.
0:27:29 > 0:27:34Once we'd decided what we were doing, we anticipated it taking 12 weeks.
0:27:34 > 0:27:38Or I did. The builders didn't.
0:27:39 > 0:27:43It took nearer 16-17 weeks in the end,
0:27:43 > 0:27:46so the overrun was 4-5 weeks.
0:27:46 > 0:27:51'So it seems the schedule ran away from Sean a little bit.
0:27:51 > 0:27:55'What impact did that have on the budget?'
0:27:55 > 0:27:59The last calculation we did, we came in at £88,000.
0:27:59 > 0:28:03We spent a lot more because we changed the specification.
0:28:03 > 0:28:05Rather than doing a basic refurb,
0:28:05 > 0:28:11we decided to put the two-storey extension on and that's what has cost the bulk of the money, really.
0:28:11 > 0:28:16And some of the features, like the staircase, for example.
0:28:16 > 0:28:20That's cost quite a lot of money over and above what we budgeted.
0:28:20 > 0:28:25And there were things we hadn't budgeted for like hire tools, scaffolding and skips.
0:28:25 > 0:28:29We'd anticipated a few hundred pounds and those items cost thousands.
0:28:29 > 0:28:35Keeping your budget realistic at the start of a project is the way to make money from development.
0:28:35 > 0:28:40But the research you do before you bid at an auction really makes the difference.
0:28:40 > 0:28:43We're pleased that we chose the house.
0:28:43 > 0:28:49We were lucky that the house happened to be in a catchment area for one of the best schools.
0:28:49 > 0:28:54We're a bit over schedule, we're quite a lot over on the budget that we first set out.
0:28:54 > 0:29:00However, we've gone for a high end product, so the budget had to shift accordingly.
0:29:00 > 0:29:04So here's hoping that this is the right decision
0:29:04 > 0:29:06for that high end product.
0:29:06 > 0:29:09We asked two local property experts for their thoughts.
0:29:09 > 0:29:12The vendor has done the extension very well.
0:29:12 > 0:29:15It's been sympathetically done.
0:29:15 > 0:29:19Using the bricks from the side on the front elevation works well.
0:29:19 > 0:29:24Also, the finish is very good, obviously, when it's completely finished.
0:29:24 > 0:29:27But everything about it is good. I like the open plan.
0:29:27 > 0:29:31He's done a good job. He's used the plot to its full advantage.
0:29:31 > 0:29:34As far as the extension is concerned,
0:29:34 > 0:29:38whilst they were doing a permitted development on the ground floor,
0:29:38 > 0:29:42it was worthwhile to go that extra hog and come up to the first floor.
0:29:42 > 0:29:48He's added that extra bedroom. It's not a massive bedroom, but it does help definitely.
0:29:48 > 0:29:53Phew! That's a big thumbs-up for the new extension.
0:29:53 > 0:29:58Sean has always been very clear that he wants to sell this property, not rent it out.
0:29:58 > 0:30:03He paid £141,000 at auction and has spent £85,000 on the refurbishment,
0:30:03 > 0:30:07bringing his total outlay to £226,000.
0:30:07 > 0:30:11So what do the property experts think that the place is now worth?
0:30:12 > 0:30:19My opinion on the price would be that it's somewhere in the region of £275,000 and probably no more.
0:30:19 > 0:30:24I would put this property on the market with an asking price of £275,000.
0:30:26 > 0:30:30Based on those figures, Sean could make a healthy pre-tax profit
0:30:30 > 0:30:34of £49,000, minus the usual selling expenses.
0:30:34 > 0:30:41That's very good. That's what we need to recover some of the budget overrun, so that would be fantastic.
0:30:43 > 0:30:50But Sean's already thinking about how to make his next project take less time and less money.
0:30:50 > 0:30:53Probably if I was to do the next one, I would do less work
0:30:53 > 0:30:58and try and speed up the project, so I can turn more projects around in a year.
0:31:01 > 0:31:08Today, I'm north of Derby city in the picturesque village of Duffield on the edge of the Peak District.
0:31:08 > 0:31:13Duffield has great public transport links and some excellent local schools,
0:31:13 > 0:31:18making it ideal for families or anyone seeking the quiet life.
0:31:18 > 0:31:24In the heart of Duffield, close to The Ecclesbourne School, is the property I'm here to see,
0:31:24 > 0:31:26so it's extremely well located.
0:31:26 > 0:31:30This is it, a two-bed bungalow. It had a guide price of £195,000,
0:31:30 > 0:31:34which for round here is good value for money, but it gets better
0:31:34 > 0:31:38because it's also got planning permission to add another storey
0:31:38 > 0:31:41to create a four-bedroom, detached house.
0:31:41 > 0:31:45Ooh, that could make somebody some money.
0:31:45 > 0:31:49# Ain't it kind of funny? It boils down to money... #
0:31:49 > 0:31:53Development opportunities like this are in short supply in this area,
0:31:53 > 0:31:57especially with that planning permission in place.
0:31:59 > 0:32:03So what's on offer? A nice bit of parquet flooring for a start.
0:32:03 > 0:32:07A bedroom down that end, large living room there, lots of light.
0:32:07 > 0:32:10Second bedroom there, a bathroom
0:32:10 > 0:32:16which looks like it's had a semi-makeover going on, a half-finished thing there,
0:32:16 > 0:32:20then through to your kitchen. That is basically the property.
0:32:20 > 0:32:23It's a nice-sized kitchen, more of a kitchen-diner.
0:32:23 > 0:32:29Very old and tired units, you'd want to get rid of these, but the sink is looking out over the garden
0:32:29 > 0:32:31and a few nice, added bonuses.
0:32:31 > 0:32:38This looks like a brand-new, fairly energy-efficient boiler. That'd save you a few thousand quid. Good news.
0:32:38 > 0:32:44At least you'll be warm while you spend every penny you have on those potential extensions.
0:32:44 > 0:32:50Building is a costly business, but with such a prime location, it should be well worth the expense.
0:32:50 > 0:32:57Well, at the rear of the property, not a huge garden, but a decent enough sized lawn, I suppose,
0:32:57 > 0:33:00and here you can see the potential for that extension.
0:33:00 > 0:33:06But the school which I talked about earlier is a real draw for families to this area.
0:33:06 > 0:33:12You couldn't be much closer. Over the other side of that hedge is the school playing field,
0:33:12 > 0:33:16which means that your garden seems a bit bigger than it actually is.
0:33:18 > 0:33:24So you could extend up and out or just do one of those, but what's the best option?
0:33:24 > 0:33:28We asked a local property expert for his opinion and his thoughts
0:33:28 > 0:33:31on that all-important planning permission.
0:33:31 > 0:33:34The planning permission is interesting
0:33:34 > 0:33:38and I can see why someone would want to develop a family house here,
0:33:38 > 0:33:45but it's probably more cost-effective to put a small extension on the existing bungalow.
0:33:45 > 0:33:48# I want easy
0:33:48 > 0:33:51# Easy money, easy money... #
0:33:51 > 0:33:57With that guide price of £195,000 in mind, is there easy money to be made on this property?
0:33:57 > 0:34:02Forget building up into the roof. What about that small extension?
0:34:02 > 0:34:07And I think with a small extension, it could get to £275,000.
0:34:07 > 0:34:10If you were to develop the house,
0:34:10 > 0:34:15then I think the market would allow a price of around £325,000.
0:34:15 > 0:34:18That's a pretty good return on the money.
0:34:18 > 0:34:22But it could cost a fair bit to carry out either extension,
0:34:22 > 0:34:24so what would the rental values be?
0:34:24 > 0:34:30You would expect to get a rent of round about £650 per calendar month.
0:34:30 > 0:34:34If you were to develop the three/four-bedroom, detached house,
0:34:34 > 0:34:38you would expect to get a rent of around £1,000 per month.
0:34:38 > 0:34:43What you've got here is a nice, little bungalow in a lovely location.
0:34:43 > 0:34:47You could spend some money doing it up as it is and that would be fine,
0:34:47 > 0:34:51but the real money is to be made from carrying out those plans.
0:34:51 > 0:34:54Let's see who fancied the challenge when it went under the hammer.
0:34:54 > 0:34:57Lot 52A is in Duffield.
0:34:57 > 0:35:00Presently a two-bed, detached bungalow,
0:35:00 > 0:35:04but with consent to develop into a four-bed house.
0:35:04 > 0:35:07175 is bid on the phone, thank you. 176.
0:35:07 > 0:35:10177. 178.
0:35:11 > 0:35:14179. 180.
0:35:14 > 0:35:17183. 183. 184.
0:35:17 > 0:35:20185. 185.
0:35:20 > 0:35:22186. 187.
0:35:22 > 0:35:25188, sir? 188. 189 is it now or not?
0:35:25 > 0:35:29Fresh bidder, 189. 190? 190.
0:35:29 > 0:35:33At £190,000. If that's the highest bid, we shall sell it.
0:35:33 > 0:35:36190,000 for the first time...
0:35:36 > 0:35:40Second time. Third and last chance quickly.
0:35:40 > 0:35:43£190,000... Yours, sir.
0:35:43 > 0:35:45Thank you, 190. 386...
0:35:45 > 0:35:51'That was closely contested, but the final successful bid of 190,000 came from Wayne.
0:35:51 > 0:35:57'He and his wife Jackie have recently returned to the UK after years of working in property abroad.
0:35:57 > 0:36:03'I went to meet them to find out more about their very first development venture back home.'
0:36:04 > 0:36:08- Jackie, Wayne, congratulations. - Thank you.- Thank you.
0:36:08 > 0:36:10Tell me more about you two.
0:36:10 > 0:36:15We've travelled and just had a fantastic life so far.
0:36:15 > 0:36:22It started off when we first bought a little holiday place in Spain and we did it all up and renovated it.
0:36:22 > 0:36:25We just found that we absolutely adored doing it.
0:36:25 > 0:36:31As a result of that, we then started looking to buy property in other parts of the world.
0:36:31 > 0:36:37And through a chance meeting of a few different people, we ended up moving to Dubai
0:36:37 > 0:36:42and I ended up working for a couple of developers in Dubai.
0:36:43 > 0:36:47'Since then, Wayne and Jackie have returned to the UK,
0:36:47 > 0:36:51'so their three-year-old son Ollie can grow up here.
0:36:51 > 0:36:54'So why this property in this location?'
0:36:54 > 0:36:58Well, this bungalow is really in the heart of the village.
0:36:58 > 0:37:01And right behind us is the school.
0:37:01 > 0:37:05Its location, more than anything, was a real selling point,
0:37:05 > 0:37:09plus it's a bungalow and therefore, it's on a large plot.
0:37:09 > 0:37:14It's got quite a bit of land around it and we feel it would make a really nice family home.
0:37:14 > 0:37:17It ticked all the right boxes.
0:37:17 > 0:37:21- One box must be it already has planning permission. - That was a big box.
0:37:21 > 0:37:25- What are your plans for it? - Big plans, aren't they?- Big plans.
0:37:25 > 0:37:32The plans are to double the size of this room, to knock out that wall and double the size of the lounge.
0:37:32 > 0:37:39It currently has two bedrooms. They will both disappear and become a very large lounge-diner.
0:37:39 > 0:37:45Then upstairs, because we have permission to double the height, will be four bedrooms,
0:37:45 > 0:37:49a big family bathroom and obviously an en-suite to the master bedroom.
0:37:49 > 0:37:53Are you pretty much sticking to the plans as were passed?
0:37:53 > 0:37:56We've made some changes already
0:37:56 > 0:38:00and we've already made one visit to the planning part of the council.
0:38:00 > 0:38:06We will probably have to make a couple more trips with a couple of the ideas that we have.
0:38:06 > 0:38:09They're not major structural changes to the property,
0:38:09 > 0:38:15but we believe they are small changes which will add a great deal of appeal to the property.
0:38:15 > 0:38:22'What are these intriguing small changes that Jackie and Wayne think will make such a difference?'
0:38:22 > 0:38:25The kitchen-diner wasn't on the original plans,
0:38:25 > 0:38:31but we think a 27 square metre kitchen-diner will add a lot of wow factor to the house.
0:38:31 > 0:38:35Do you know the cost of doing what you're planning?
0:38:35 > 0:38:38We've worked very hard on planning the budget.
0:38:38 > 0:38:44At the moment, the budget is around 90,000, all fees, everything covered in that,
0:38:44 > 0:38:48and we're confident that we'll stick to that.
0:38:48 > 0:38:52- Yes.- The good thing is that the builders that we're using are related.
0:38:52 > 0:38:59My brother runs his own building company and it's once the build work is finished that we'll come in.
0:38:59 > 0:39:02And the plan then is to sell it on?
0:39:02 > 0:39:06This is a business to make money, so yes, the plan is to sell it on.
0:39:06 > 0:39:12'It's clear that the couple are thoroughly prepared, so is there anything that concerns them?'
0:39:12 > 0:39:16The biggest thing that we cannot control is the market,
0:39:16 > 0:39:22so at the end of it when it's looking fantastic and we put it on the market to sell,
0:39:22 > 0:39:24we need the buyer to come in the door.
0:39:24 > 0:39:29- You bought it for 190 plus costs. - Yes.- You're going to spend about...?
0:39:29 > 0:39:33About 90 with a contingency of about 10 in there as well,
0:39:33 > 0:39:37so you could say the cost to us will be about 290.
0:39:37 > 0:39:40What do you hope you might be able to sell it for?
0:39:40 > 0:39:46We should be able to get somewhere between 360 to 380.
0:39:46 > 0:39:50- A £70,000 to £90,000 profit? - Somewhere in there, yeah.
0:39:50 > 0:39:53What's the timescale for doing it?
0:39:53 > 0:40:00- Just a little over four months.- This is a family house and people relocate to Duffield because of children,
0:40:00 > 0:40:06so we need this property to be back on the market to catch the Easter and then the May and June buyers
0:40:06 > 0:40:10who are looking to move before school starts after the summer holidays.
0:40:10 > 0:40:15- Great. I wish you all the best in your plans and good luck with it. - Thank you.
0:40:15 > 0:40:18- I look forward to seeing how you get on.- Thank you.
0:40:18 > 0:40:25Well, Wayne and Jackie are obviously excited to take on this project and quite right too.
0:40:25 > 0:40:29But that four-month timescale could easily go awry
0:40:29 > 0:40:34if the planners need more than just a casual chat before they make the changes.
0:40:34 > 0:40:40They're keeping it within the family. Will they keep it within the budget? Find out later.
0:40:42 > 0:40:46It's been quite a few months now since we saw those properties.
0:40:46 > 0:40:51- But has time and money been well spent?- Let's go back and find out.
0:40:54 > 0:40:57'We head back to Streatham, south-west London now
0:40:57 > 0:41:02'where Paul had paid £426,000 for this three-storey semi,
0:41:02 > 0:41:04'divided into two flats.
0:41:04 > 0:41:08'He had only recently moved into full-time property developing,
0:41:08 > 0:41:12'but clearly had grand plans for his new career.'
0:41:12 > 0:41:15What was it about property and why do you love it so much?
0:41:15 > 0:41:18I think I'm a wannabe architect
0:41:18 > 0:41:23and I like changing things around and improving old properties.
0:41:23 > 0:41:27# I only wanna make things right... #
0:41:27 > 0:41:33It's now 16 months later and Paul's invited us back to see the transformation.
0:41:33 > 0:41:36# I only wanna make things right... #
0:41:38 > 0:41:43A three-storey property now gives a much more impressive first impression.
0:41:44 > 0:41:47The two separate entrances remain.
0:41:48 > 0:41:53And in the ground floor flat, the large living room has been completely refurbished.
0:41:56 > 0:42:03The narrow kitchen has been extended into the corridor and fitted out to a high specification.
0:42:03 > 0:42:07So in terms of the layout, this used to be a corridor
0:42:07 > 0:42:13and a separate kitchen with a wall at the back and a separate living room.
0:42:13 > 0:42:17What we did was we knocked down that wall, opened up the space.
0:42:17 > 0:42:20We carried on with under-floor insulation
0:42:20 > 0:42:22and started adding some of the toys,
0:42:22 > 0:42:26so we've got our door entry system over here,
0:42:26 > 0:42:31we've got our multi-room music system, as well as a zoned mood lighting system,
0:42:31 > 0:42:35but what was important to me was to try to marry the new with the old.
0:42:35 > 0:42:39So we had to bring some charm back into the property.
0:42:39 > 0:42:44That meant bringing in an old fireplace and also some old-style radiators.
0:42:44 > 0:42:48The two flats were registered as one dwelling,
0:42:48 > 0:42:52so Paul had to jump through a few legal hoops to sort this out.
0:42:52 > 0:42:58This proved to be a formality. He got planning permission for a ground-floor extension
0:42:58 > 0:43:01which has increased the size of the original bedroom
0:43:01 > 0:43:07and as Paul promised, the flat now has a staircase leading to a second bedroom up on the first floor.
0:43:09 > 0:43:14Back on the ground floor, a new bathroom has been installed.
0:43:16 > 0:43:21Up on the first floor, the second flat has also opened its kitchen and living room up,
0:43:21 > 0:43:24giving them a much more contemporary style.
0:43:29 > 0:43:33On the top floor, the two bedrooms have been totally overhauled.
0:43:36 > 0:43:39Paul's added a Juliet balcony to the front bedroom,
0:43:39 > 0:43:43but both have been reduced to accommodate a new bathroom.
0:43:43 > 0:43:47A new staircase has been constructed up to a loft conversion.
0:43:48 > 0:43:52So this is where we've carried out the loft extension.
0:43:52 > 0:43:57Previously, it was just an open loft, but we were able to speak to Planning.
0:43:57 > 0:44:01They were unhappy with a wide dormer at the back of the building,
0:44:01 > 0:44:05but they gave us permission to have the side dormer,
0:44:05 > 0:44:11and with that, we have the access, albeit a little bit tighter than we would have liked.
0:44:11 > 0:44:17So the upper flat has retained three bedrooms and the garden flat now has two bedrooms.
0:44:17 > 0:44:21The garden has yet to be landscaped. It's all taken longer than planned.
0:44:21 > 0:44:28Paul's worked on other conversions and could only work on this project when his other commitments allowed.
0:44:28 > 0:44:30How much has he had to spend?
0:44:32 > 0:44:37We still need to, as far as budgets are concerned, do that final tot-up,
0:44:37 > 0:44:40but I suspect we're around the £150,000 mark.
0:44:40 > 0:44:44With the 426,000 he paid at auction,
0:44:44 > 0:44:48that takes the total outlay to £576,000.
0:44:48 > 0:44:55The property obviously in financial terms has to pay for itself because this is what I do as a living.
0:44:55 > 0:44:59But there is also an element of a labour of love
0:44:59 > 0:45:05and to that degree, I've actually chosen to move into the ground floor flat.
0:45:06 > 0:45:09Time to hear the opinion of two local estate agents.
0:45:09 > 0:45:14It's a clever use of space. A lot of thought has gone into the design
0:45:14 > 0:45:17to make both apartments as spacious as possible.
0:45:17 > 0:45:22And it's great that the downstairs flat has a private garden.
0:45:22 > 0:45:25First impressions are very important when selling a property
0:45:25 > 0:45:29and the garden at the front has been done very, very well.
0:45:29 > 0:45:33There is a very high standard of finish to the bathrooms and kitchens.
0:45:33 > 0:45:37They have been done to a very good specification.
0:45:37 > 0:45:42The extra gadgets added to the property really make it special.
0:45:43 > 0:45:49How much rental income do the estate agents think that the two flats could generate?
0:45:50 > 0:45:53My recommendation on the rental values would be
0:45:53 > 0:45:59that the two-bedroom, ground floor garden flat should be put on the market
0:45:59 > 0:46:02at £1,350 per calendar month
0:46:02 > 0:46:09and the upper, split-level maisonette at £2,000 per calendar month.
0:46:09 > 0:46:14You could probably look at about £2,000 per month for the ground floor flat
0:46:14 > 0:46:18and maybe as high as £2,250 per month for the upstairs flat.
0:46:18 > 0:46:21There's quite a big disparity there.
0:46:21 > 0:46:24I don't believe the lower rental figure.
0:46:24 > 0:46:27I have property in the area.
0:46:27 > 0:46:33I could rent at that price tomorrow, but on the higher side, I'd be relatively satisfied with that.
0:46:33 > 0:46:37What valuation do the experts give for the two flats?
0:46:37 > 0:46:41Could they be worth more than the £576,000 Paul's invested here?
0:46:41 > 0:46:46I think the ground floor flat with the garden would probably fetch £425,000.
0:46:46 > 0:46:50The upper flat would probably fetch £450,000 for the right buyer.
0:46:50 > 0:46:55My recommendation would be that the ground floor, two-bedroom flat should go on the market
0:46:55 > 0:46:58at £350,000
0:46:58 > 0:47:05and the upper, three-bedroom, split level maisonette at £475,000.
0:47:06 > 0:47:11Those valuations of between 825,000 and 875,000
0:47:11 > 0:47:17would generate a gross profit of between £249,000 and £299,000.
0:47:17 > 0:47:21Overall, I'm reasonably happy with that.
0:47:21 > 0:47:25As I say, I didn't primarily do this for just the profit.
0:47:25 > 0:47:31We did a number of things that would never see an enormous return on them, but overall, I'm happy.
0:47:31 > 0:47:36What's next, once this house is finished and he's moved in?
0:47:36 > 0:47:41I think my next step is much of the same. It's out there looking for new properties.
0:47:41 > 0:47:48The aim is to try and find another property of a similar ilk to this one and do a similar sort of job.
0:47:52 > 0:47:59'We're back in Duffield near Derby to catch up with some globetrotting developers.
0:47:59 > 0:48:04'Wayne and Jackie relocated back to the UK after developing properties in Spain and Dubai.'
0:48:04 > 0:48:07# Roam if you want to
0:48:07 > 0:48:11# Roam around the world... #
0:48:11 > 0:48:16'They bought this house to start their property business in the UK
0:48:16 > 0:48:19'and had grand designs for this modest bungalow.'
0:48:19 > 0:48:22- Big plans, aren't they?- Big plans.
0:48:22 > 0:48:29The plans are to double the size of this room, so to knock out that wall and double the size of the lounge.
0:48:29 > 0:48:35It currently has two bedrooms. They will both disappear and become a very large kitchen-diner.
0:48:35 > 0:48:38Upstairs will be four bedrooms.
0:48:38 > 0:48:43'Like I said, big plans and since this bungalow came with planning permission,
0:48:43 > 0:48:48'this savvy couple spotted an opportunity to make the bungalow even better,
0:48:48 > 0:48:51'if the planning department let them.'
0:48:51 > 0:48:56- Are you sticking to the plans as were passed? - We've made some changes.
0:48:56 > 0:48:59We've made one visit to the planning part of the council.
0:48:59 > 0:49:02We'll probably have to make a couple more trips.
0:49:02 > 0:49:08We've come back six months later to see if Wayne and Jackie have reached for the sky
0:49:08 > 0:49:10and doubled the size of the house.
0:49:15 > 0:49:19The 1960s bungalow has been transformed.
0:49:19 > 0:49:21It's bigger, it's better...
0:49:23 > 0:49:25..but it's not finished.
0:49:25 > 0:49:28They've added a whole new level to this house.
0:49:28 > 0:49:32Downstairs has been completely reshaped
0:49:32 > 0:49:34and on the brand-new upper floor,
0:49:34 > 0:49:39there are now four bedrooms, two bathrooms and a lot more space.
0:49:39 > 0:49:45But doing such a major re-design has obviously had an impact on the schedule.
0:49:45 > 0:49:49We've slipped from our original timeframe, but purposely
0:49:49 > 0:49:54because we took on another project in the middle of this one
0:49:54 > 0:49:57which took us about four and a half weeks, I would say.
0:49:57 > 0:50:01So that explains it. Wayne and Jackie saw the opportunity
0:50:01 > 0:50:05to make an extremely fast buck on another property
0:50:05 > 0:50:07while this one was being done up.
0:50:07 > 0:50:13But still, in only six months, they've doubled the size of this one.
0:50:13 > 0:50:17Since you last visited, we have literally gutted the house.
0:50:17 > 0:50:22We've taken the roof off completely and just taken it back to four walls.
0:50:22 > 0:50:27Then we have rebuilt it, taking it from a two-bedroomed house, one-storey,
0:50:27 > 0:50:30to a four-bedroomed house, two-storey.
0:50:32 > 0:50:34Well, that is impressive,
0:50:34 > 0:50:38but it looks like there's still a bit of work to be done here.
0:50:38 > 0:50:41There's a lot to do internally.
0:50:41 > 0:50:46Right now, the kitchen extension hasn't got its roof on.
0:50:46 > 0:50:49The tiles have just been delivered.
0:50:49 > 0:50:56Tomorrow, all the block paving is arriving for the driveway to start finishing the exterior as well.
0:50:56 > 0:51:01So there's a lot to do and a very, very short amount of time to do it in.
0:51:01 > 0:51:05For that reason, all hands are getting on deck right now
0:51:05 > 0:51:09and everybody is mucking in and starting to do some work.
0:51:09 > 0:51:13Whenever you do a development, there are always days that drive you crazy.
0:51:13 > 0:51:19Today's crazy aspect was the fitting of the stairway which should have arrived weeks ago.
0:51:19 > 0:51:25It arrived a couple of days ago. When it did arrive, it was actually 12 millimetres too big everywhere.
0:51:25 > 0:51:29# Heaven waits for those who dare to climb
0:51:29 > 0:51:32# The stairway of love... #
0:51:33 > 0:51:37Step by step, this bungalow is fast becoming a family home.
0:51:40 > 0:51:43OK, well, this room was the original lounge
0:51:43 > 0:51:47and in fact, it finished here where this wall is.
0:51:47 > 0:51:53But we have now opened it right out and we've extended it into this area
0:51:53 > 0:51:56which is now going to be the kitchen.
0:51:56 > 0:52:01The kitchen is going to have units all built around here at the back,
0:52:01 > 0:52:03a range cooker in here,
0:52:03 > 0:52:08and a kitchen island in front of you where I'm standing now.
0:52:08 > 0:52:13And so then the room beyond will become the kitchen-diner.
0:52:13 > 0:52:19This is my favourite room because I feel any family will spend a lot of time in this room.
0:52:19 > 0:52:21# I won't give up
0:52:21 > 0:52:25# I'll never stop our love, I'll never stop... #
0:52:25 > 0:52:28You might have to use your imagination,
0:52:28 > 0:52:33but Jackie can clearly see how this dream kitchen will come together.
0:52:33 > 0:52:37Throughout the house, there has been tremendous progress
0:52:37 > 0:52:42as the old bedrooms have been knocked away to create brand-new living spaces.
0:52:42 > 0:52:46So we've placed the stairs over what was previously the old bathroom.
0:52:46 > 0:52:50Then of course, everything is brand-new up here.
0:52:50 > 0:52:54This is bedroom number two. It's a really good-sized room.
0:52:54 > 0:53:00I guess the only real change is that this space on the original plan was one bedroom.
0:53:00 > 0:53:05It was over 20 square metres which we just figured was too big and not a usable space,
0:53:05 > 0:53:10so we've made this into two separate bedrooms and they both work well.
0:53:10 > 0:53:13They're both double bedrooms, good-sized bedrooms too.
0:53:13 > 0:53:17Upstairs is much closer to completion
0:53:17 > 0:53:22and it's easy to see how well-balanced this house will be when it's finished.
0:53:22 > 0:53:24# I couldn't ask for another... #
0:53:24 > 0:53:30But even for the very experienced, like Wayne and Jackie, not everything goes according to plan.
0:53:31 > 0:53:35We're very happy with the overall speed and progress.
0:53:35 > 0:53:39What has been frustrating is the last couple of weeks
0:53:39 > 0:53:45where we've had to wait for certain things to arrive before we can do other things.
0:53:45 > 0:53:51For example, we had a delay on the roof trusses. Once we had them, we had a delay on the roof tiles.
0:53:51 > 0:53:54Those kind of things are costing us valuable days.
0:53:54 > 0:54:00In the early days of a build project the size of this, there is always something you can do.
0:54:00 > 0:54:04Towards the end, everything is linked to everything else.
0:54:06 > 0:54:09It's time to bring in two local property experts
0:54:09 > 0:54:13to see if the couple's hard work is going to be rewarded.
0:54:14 > 0:54:18My first impressions of what's been done at this property
0:54:18 > 0:54:22is they've quite seamlessly created a four-bedroom, detached house
0:54:22 > 0:54:26from a two-bedroom bungalow, so the signs at this stage are good.
0:54:26 > 0:54:29When you work within an existing site,
0:54:29 > 0:54:32it's a challenge to get the right mix of accommodation.
0:54:32 > 0:54:38The architect has done a fantastic job to come up with a brand-new family home within this site.
0:54:38 > 0:54:42It's a big vote of confidence so far for Wayne and Jackie.
0:54:42 > 0:54:45They bought the house for 190,000
0:54:45 > 0:54:48and their projected overall spend is 90,000,
0:54:48 > 0:54:53bringing their total investment to £280,000.
0:54:53 > 0:54:58Although it's difficult to give a precise value with so much finishing off still to do,
0:54:58 > 0:55:01can the estate agents see a healthy return here?
0:55:01 > 0:55:05If the property was put on the open market when the works are finished,
0:55:05 > 0:55:08it should achieve between £330,000 and £350,000.
0:55:08 > 0:55:13Sale-wise, it ought to return somewhere between £390,000 to £400,000.
0:55:13 > 0:55:15Based on those valuations,
0:55:15 > 0:55:21that could give Wayne and Jackie a profit of between £50,000 and £120,000.
0:55:21 > 0:55:24But that figure is speculative.
0:55:24 > 0:55:26Yeah, I think that's about right.
0:55:26 > 0:55:31To value the property at the moment is quite difficult, given its current state.
0:55:31 > 0:55:37We both talked about that because they don't know the standard of fittings that we're putting in.
0:55:37 > 0:55:43If you took the average of those two valuations, that's pretty much where we would value it as well,
0:55:43 > 0:55:46so we're very happy with that.
0:55:47 > 0:55:50So they've succeeded in sticking to their budget,
0:55:50 > 0:55:56even though the timeframe slipped a little, due to working on their other property and bad weather.
0:55:56 > 0:56:02They intend to finish here in the next few weeks and have it ready to market to buyers.
0:56:02 > 0:56:06The project was made easier by the fact that they live in the village
0:56:06 > 0:56:09and Jackie's brother was their head builder.
0:56:09 > 0:56:14So does this mean their first experience of buying at auction was a success
0:56:14 > 0:56:16and are they keen to do it all over again?
0:56:16 > 0:56:22I think we would definitely go through this process again, particularly the auction.
0:56:22 > 0:56:28The auction's great fun. You get in there, you get auction fever and you watch everybody else get it.
0:56:28 > 0:56:32It's really exciting, particularly if you get involved
0:56:32 > 0:56:36in bidding for a property that you want.
0:56:36 > 0:56:39So definitely, I'm hooked.
0:56:42 > 0:56:47We hoped you've enjoyed watching Homes Under The Hammer and learnt some useful lessons.
0:56:47 > 0:56:53Join us next time when we'll have more hot properties and possibly some that are more lukewarm.
0:56:53 > 0:56:55- See you soon.- Goodbye.- Goodbye.
0:57:11 > 0:57:15Subtitles by Subtext for Red Bee Media Ltd 2011
0:57:15 > 0:57:18Email subtitling@bbc.co.uk