Episode 90

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0:00:02 > 0:00:05Hello. Lucy and I find the world of property absolutely absorbing.

0:00:05 > 0:00:07Yes, but in order to do well,

0:00:07 > 0:00:09you need to make sure you buy at the right price.

0:00:09 > 0:00:14One way you can do that is buying your home under the hammer.

0:00:39 > 0:00:42You have to do your homework before you buy at auction

0:00:42 > 0:00:46but once that's shown it's the property for you, you could get yourself a bargain.

0:00:46 > 0:00:50I wonder if there's any great deals on today's show. Here's what they bought.

0:00:51 > 0:00:56I might need a compass in this dark and dingy basement in Maida Vale.

0:00:57 > 0:01:01It looks like a bit of a labyrinth.

0:01:01 > 0:01:06This former stable in Wiltshire has a very inspiring space.

0:01:06 > 0:01:09I would like to stick a huge dining table in here

0:01:09 > 0:01:11and have loads of dinner parties.

0:01:11 > 0:01:16And in Lincolnshire, this two-bedroom semidetached is oddly appealing.

0:01:16 > 0:01:18Quirky, yes.

0:01:18 > 0:01:21Likeable, most definitely.

0:01:22 > 0:01:25All these properties have been sold at auction

0:01:25 > 0:01:27and we'll find out who bought them

0:01:27 > 0:01:31and what they paid for them when they went under the hammer.

0:01:33 > 0:01:36# I love London

0:01:36 > 0:01:38# Love the town Look around

0:01:38 > 0:01:42# Come along with me through London...#

0:01:42 > 0:01:47I'm in Maida Vale, an affluent residential area in West London.

0:01:47 > 0:01:51It's got fantastic transport links and great local shops.

0:01:51 > 0:01:57Housing-wise, there are many large, late-Victorian and Edwardian mansion flats.

0:01:57 > 0:02:01And with Notting Hill and Ladbroke Grove just a stone's throw away,

0:02:01 > 0:02:05something tells me this is a prime property spot.

0:02:06 > 0:02:11So, £50,000 is not going to buy you a lot around here, is it?

0:02:13 > 0:02:14Correct, it isn't.

0:02:14 > 0:02:19What it does get you is a basement/cellar of this beautiful Victorian building.

0:02:19 > 0:02:22Let's take a look inside.

0:02:24 > 0:02:27Luckily, there's another entrance up here.

0:02:27 > 0:02:30# The other side of London town... #

0:02:30 > 0:02:36That auction guide price of £50,000 doesn't buy you easy access.

0:02:36 > 0:02:42For now, you have to enter under the stairs and down a rickety wooden staircase.

0:02:42 > 0:02:44# Other side of London... #

0:02:44 > 0:02:47No wonder I couldn't get through the door, it's piled up with rubbish.

0:02:47 > 0:02:53It looks like this place is basically used as a storing ground to dump stuff.

0:02:53 > 0:02:58So first thing you notice is not much head height, which is a disappointment,

0:02:58 > 0:03:01but I don't know, it looks like a bit of a labyrinth.

0:03:01 > 0:03:05# I'm going deeper underground

0:03:06 > 0:03:08There's too much panic in this town... #

0:03:08 > 0:03:12My first job would be to hire a skip and clear this place out.

0:03:12 > 0:03:15And once you've got rid of all the junk,

0:03:15 > 0:03:20you'd be even clearer about exactly what you've got down here.

0:03:21 > 0:03:24It's about 700 square foot in total.

0:03:24 > 0:03:27That is certainly big enough to create a flat.

0:03:27 > 0:03:32A few issues to resolve before you do that but hmm...potential.

0:03:35 > 0:03:40Potential living accommodation in an area like this is a pretty attractive selling point

0:03:40 > 0:03:45for this rather dingy basement that was guided at £50,000.

0:03:45 > 0:03:51But something tells me that turning it into residential isn't going to be easy.

0:03:51 > 0:03:54Come into this room here

0:03:54 > 0:03:56and you start to get an idea of what's going to be involved

0:03:56 > 0:03:59in converting this cellar into a habitable space.

0:03:59 > 0:04:01In here, you've got a good head height.

0:04:01 > 0:04:05To make that liveable, you'll have to have a similar head height

0:04:05 > 0:04:09so you'll have to take out a foot of ground.

0:04:09 > 0:04:12The bad news is you'll have to do that by hand.

0:04:12 > 0:04:14Any heavy machinery in here would create too much vibration -

0:04:14 > 0:04:17that'd disturb the foundations, so it has to be done by hand.

0:04:17 > 0:04:20You've then got to get rid of all that rubble -

0:04:20 > 0:04:24and there will be tonnes of it - out here, again by hand, in sacks.

0:04:24 > 0:04:27It's all labour intensive. That costs you lots of money.

0:04:27 > 0:04:30That's before you get into the planning issues.

0:04:30 > 0:04:34Because in order to convert this storage space into a habitable space,

0:04:34 > 0:04:37you'll have to get planning permission.

0:04:37 > 0:04:41For that, you'll have to look at what kind of services are running under here,

0:04:41 > 0:04:43electric pipes, gas pipes, water mains.

0:04:43 > 0:04:46The tube might be quite close. Only kidding!

0:04:46 > 0:04:49You've got to do all that before you even start the work.

0:04:49 > 0:04:53When it comes to doing the work, all that labour equals money.

0:04:53 > 0:04:54It's not a cheap job.

0:04:54 > 0:04:58Exciting as it might seem, it's going to cost you a packet.

0:04:58 > 0:05:02So this basement conversion won't be straightforward or cheap.

0:05:02 > 0:05:04And, before you even start,

0:05:04 > 0:05:07you can't assume planning permission will be given!

0:05:07 > 0:05:11Whoever bought this property will have to have time, money, know-how

0:05:11 > 0:05:15AND the planners on their side.

0:05:15 > 0:05:18Plus there are some other matters to deal with.

0:05:19 > 0:05:22There are a few legal issues which you're going to have to solve

0:05:22 > 0:05:26before you do any work on the basement as well.

0:05:26 > 0:05:28Because it's leasehold.

0:05:28 > 0:05:32The freehold is owned by the people who own the three flats above.

0:05:32 > 0:05:35So you're going to have to get their permission

0:05:35 > 0:05:40before you do any works down there and they may or may not give you that permission, so it is a gamble.

0:05:40 > 0:05:42Coming up the stairs here, you get to this point

0:05:42 > 0:05:45and that is where the basement ends.

0:05:45 > 0:05:47There is a garden but that's owned by the flat above.

0:05:47 > 0:05:51So with a guide price of £50,000,

0:05:51 > 0:05:55we asked a local estate agent to give us his views on the basement.

0:05:56 > 0:06:00There's many options in terms of how you transform this space.

0:06:00 > 0:06:03There's obviously a lot of work involved either way,

0:06:03 > 0:06:06but the real key is to obtain planning

0:06:06 > 0:06:09to convert back into residential use.

0:06:09 > 0:06:13Excavate down and create possibly a one or a two-bedroom garden flat.

0:06:14 > 0:06:18How likely is it that you'd get planning permission to convert?

0:06:18 > 0:06:22Whilst there are already a few of these that have been converted

0:06:22 > 0:06:25on the street, they are dating back quite a while.

0:06:25 > 0:06:30There's no guarantee that the council will reissue for the same permit on this property.

0:06:30 > 0:06:33It's a case of putting it through the council.

0:06:33 > 0:06:36As long as your neighbours don't object, you should be able to get it.

0:06:36 > 0:06:39# In the basement... #

0:06:39 > 0:06:43Once converted, would it make a good buy-to-let?

0:06:43 > 0:06:45It's a fantastic rental area.

0:06:45 > 0:06:49We're talking somewhere in the region of 1,800 per calendar month

0:06:49 > 0:06:52for a property like this if converted as a two-double-bedroom.

0:06:52 > 0:06:57What could a two-bedroom basement flat be worth around here?

0:06:57 > 0:07:00We're looking at somewhere in excess of 400,000,

0:07:00 > 0:07:04and then depending on how they arranged the outside access,

0:07:04 > 0:07:07quite possibly up to 450, 475.

0:07:08 > 0:07:10Well, the cellar is good for nothing other than storage

0:07:10 > 0:07:13unless you can get that planning permission for conversion

0:07:13 > 0:07:15to a habitable space.

0:07:15 > 0:07:18And there's no guarantee you're going to get that, it's a risk.

0:07:18 > 0:07:21Let's find out who took the gamble when it went to auction.

0:07:25 > 0:07:29The lot was offered later in the day when most bidders had left,

0:07:29 > 0:07:33so let's see if someone got a basement bargain.

0:07:33 > 0:07:35Right, Lot 75A.

0:07:35 > 0:07:40It's a basement premises so who'd like to give me a start on this one?

0:07:42 > 0:07:4460,000, anybody?

0:07:44 > 0:07:4640, OK. 40,000 I've got.

0:07:46 > 0:07:51Anybody else? How much? 41?

0:07:51 > 0:07:5341, OK. 42.

0:07:53 > 0:07:5843, 44, 45, 46,

0:07:58 > 0:08:0347, 48, 49.

0:08:03 > 0:08:0550,000.

0:08:05 > 0:08:0851, 52.

0:08:09 > 0:08:1053.

0:08:10 > 0:08:1454 on the phone. 54.

0:08:14 > 0:08:1955, 56, 57, 58.

0:08:21 > 0:08:23Yes, no? 58, 59.

0:08:23 > 0:08:2660,000 on the phone.

0:08:26 > 0:08:29Yes or no, if not, in the room, on the back.

0:08:29 > 0:08:32On my left, the bid is at £59,000 against you on the phone.

0:08:32 > 0:08:3759 for the first, 59 for the second,

0:08:37 > 0:08:3959 for the third and final time.

0:08:39 > 0:08:42We all done? Sold, 59,000.

0:08:42 > 0:08:47The successful bid of £59,000 was made by Liz and Anthony.

0:08:47 > 0:08:50Liz works in IT sales and Anthony's an electrician.

0:08:50 > 0:08:53The couple are very familiar with this basement

0:08:53 > 0:08:56because they live right above it in the garden flat.

0:08:56 > 0:09:01That's where I met up with them to hear about their plans.

0:09:01 > 0:09:05- Hello.- Hello.- How are you doing? - Nice to meet you.- Hi, I'm Liz.

0:09:05 > 0:09:10- Hello, Martin. Come in. - Bit of a turn-up for the books.

0:09:10 > 0:09:12- Anthony and Liz, lovely to meet you both.- And you.

0:09:12 > 0:09:14What you know about the history of it?

0:09:14 > 0:09:17I think originally they were coal sheds of some sort.

0:09:17 > 0:09:20It's literally just been lying empty for the last 20 years.

0:09:20 > 0:09:25So you knew about it, and were you surprised when it came up for auction?

0:09:25 > 0:09:28No, when we first bought the flat six months ago,

0:09:28 > 0:09:31we knew about it and we wanted to try and buy it then.

0:09:31 > 0:09:34Did it influence your decision to purchase this property

0:09:34 > 0:09:38that there was the potential that you might get the downstairs?

0:09:38 > 0:09:41It was a benefit but we were quite content on this at the same time.

0:09:41 > 0:09:44If we don't get the basement, we don't get the basement.

0:09:44 > 0:09:47We can still look into doing extensions out the back.

0:09:47 > 0:09:49Now we have the basement, it makes it easier for us

0:09:49 > 0:09:53to do extensions because there's no problem with neighbours underneath.

0:09:53 > 0:09:55This all makes a lot of sense.

0:09:55 > 0:09:59Extending their current home downwards and outwards into their garden

0:09:59 > 0:10:02to create a large, split-level flat sounds great.

0:10:02 > 0:10:05So, what do they want to do down there?

0:10:05 > 0:10:09A spiral staircase somewhere. We're looking at extra bedrooms,

0:10:09 > 0:10:11maybe a playroom, maybe a sauna.

0:10:11 > 0:10:13MARTIN LAUGHS

0:10:13 > 0:10:17- You're shaking your head.- Yeah. - It'd be perfect for it!

0:10:18 > 0:10:20I love the idea of a basement sauna

0:10:20 > 0:10:24and, if you've got the space, why not?

0:10:24 > 0:10:26But creating extra rooms is going to be hard work.

0:10:26 > 0:10:29Talk to me about what you're going to do down there,

0:10:29 > 0:10:31specifically in terms of the rooms.

0:10:31 > 0:10:34Are you going to take out walls, what?

0:10:34 > 0:10:38Yeah, open up a lot of rooms, maybe form a few new rooms.

0:10:38 > 0:10:40An extra bedroom or two and then we know we can put

0:10:40 > 0:10:42a value on the project we're doing.

0:10:42 > 0:10:45- Presumably, a lot of digging out. - Potentially.

0:10:45 > 0:10:48More so at the back because we're looking to dig out

0:10:48 > 0:10:50to go out into the garden.

0:10:50 > 0:10:53The front of it, we could leave some of the rooms there

0:10:53 > 0:10:55at their height for storage

0:10:55 > 0:10:58- or for the little sauna I was talking about.- Yes!

0:10:58 > 0:11:01If they can avoid changing the height in some rooms,

0:11:01 > 0:11:03that'll be a bonus.

0:11:03 > 0:11:06Style-wise, they're hoping to introduce

0:11:06 > 0:11:10as much light as possible, but why do all this work in the first place?

0:11:10 > 0:11:15- Not an easy or cheap thing to do, necessarily, though.- No.

0:11:15 > 0:11:18Do you have any idea how much this is going to cost?

0:11:18 > 0:11:20We know that the building works, the excavating,

0:11:20 > 0:11:23we're looking at about 100,000 for that.

0:11:23 > 0:11:25- It's a lot of money.- It is.- It is.

0:11:25 > 0:11:28Because I stay in London, I was born in Central London,

0:11:28 > 0:11:30so I want to stay here.

0:11:30 > 0:11:33- With a couple of extra bedrooms, there's no reason to go anywhere. - Right.

0:11:33 > 0:11:36I guess, if you do that, it would probably add

0:11:36 > 0:11:38that kind of value to the property, would it?

0:11:38 > 0:11:41- Certainly in the long term, yeah. - Definitely.

0:11:41 > 0:11:44We'd never be able to afford to buy a four-bed flat in Maida Vale with a garden.

0:11:44 > 0:11:47- Right.- So what's the project plan? - How soon do you start

0:11:47 > 0:11:50and how long do you think it's going to take?

0:11:50 > 0:11:53Over the next month, we'll be getting in touch with architects

0:11:53 > 0:11:55and start getting some feedback,

0:11:55 > 0:11:58ideas of what we can and can't do and then months after that,

0:11:58 > 0:12:01- start going for planning permission. - People have said to us

0:12:01 > 0:12:03that can take six months-ish.

0:12:03 > 0:12:06Then you've got to start your building work.

0:12:06 > 0:12:08I mean, we may be able to do it quicker.

0:12:08 > 0:12:11Six to 12 months would be the start, I imagine,

0:12:11 > 0:12:14then as it takes to do the fit-out after that,

0:12:14 > 0:12:16it will just come in due time.

0:12:16 > 0:12:19Listen, good luck with it all. I hope it turns out how you hope

0:12:19 > 0:12:21- and there's a nice end to the story. - Thank you.

0:12:23 > 0:12:26Well, there you go. It's really obvious when you think about it.

0:12:26 > 0:12:29Liz and Anthony are the perfect people to have bought the basement.

0:12:29 > 0:12:32However, they still have challenges ahead of them.

0:12:32 > 0:12:35There's no guarantee they're going to get their planning permission

0:12:35 > 0:12:38and there is a lot of work to get that place converted.

0:12:38 > 0:12:41Find out how they're going to get on later in the show.

0:12:44 > 0:12:46I've travelled to Corsham today,

0:12:46 > 0:12:49a historic town in the northwest of Wiltshire.

0:12:49 > 0:12:52And very grand it is, too.

0:12:52 > 0:12:54# Ee, but it's a grand and healthy life... #

0:12:56 > 0:13:00The town is said to have thrived on sheep, stone and cloth.

0:13:00 > 0:13:03A prosperous wool trade, a limestone quarry

0:13:03 > 0:13:06and a thriving spinning and weaving industry

0:13:06 > 0:13:08put Corsham firmly on the map.

0:13:08 > 0:13:12It also helped pay for some pretty impressive properties too!

0:13:12 > 0:13:16# Ee, but it's a grand and healthy life... #

0:13:16 > 0:13:21Housed within some of the more modest properties are bookshops,

0:13:21 > 0:13:23delis and many more local amenities.

0:13:23 > 0:13:28There are also plentiful transport links to Bath and the M4 into London.

0:13:28 > 0:13:30A short walk from the town centre,

0:13:30 > 0:13:33and I'm here to see today's auction lot.

0:13:33 > 0:13:36Now, in such a historical town, you'd assume the property

0:13:36 > 0:13:40I was here to see is steeped in history.

0:13:40 > 0:13:42Well, it might not look much from the outside

0:13:42 > 0:13:46but this used to house the local taxi service.

0:13:46 > 0:13:48"That's not very historical," I hear you cry.

0:13:48 > 0:13:50Well, it is, actually,

0:13:50 > 0:13:53because I'm talking about the days of horse and cart.

0:13:53 > 0:13:56If you wanted to go to the train station 100 years ago,

0:13:56 > 0:13:58this is where you'd come.

0:13:58 > 0:14:03If there was NEIGH taxi, you'd just have to TROT on.

0:14:03 > 0:14:04Guide for this lot?

0:14:04 > 0:14:08£95,000.

0:14:08 > 0:14:13MUSIC: "Galloping Home" by Denis King

0:14:13 > 0:14:16OK, the horses may have long since bolted

0:14:16 > 0:14:20from this beauty of a property but the look of the stables remains

0:14:20 > 0:14:25despite its more recent use as office space over the two storeys.

0:14:27 > 0:14:30Well, 1,000 ideas are flashing through my head

0:14:30 > 0:14:32what you could use this for.

0:14:32 > 0:14:37What an amazing space! It's so much bigger than I thought.

0:14:37 > 0:14:40You've got this rather large catslide roof,

0:14:40 > 0:14:43which starts off high but it goes right the way down to here,

0:14:43 > 0:14:46and I love this original local stone.

0:14:46 > 0:14:49It's so nice seeing it with the white painted stone.

0:14:49 > 0:14:51It's a fantastic space.

0:14:51 > 0:14:54I would love to stick a huge dining table in here

0:14:54 > 0:14:56and have loads of dinner parties,

0:14:56 > 0:15:00but I suppose it could be a really good room to work in as well.

0:15:00 > 0:15:04Lots of opportunities with this space. I really like it.

0:15:04 > 0:15:06# I like it, like it

0:15:06 > 0:15:08# Come on, come on, come on

0:15:08 > 0:15:10# I like it, like it, come on... #

0:15:10 > 0:15:13This huge room is fabulous.

0:15:13 > 0:15:16I'd love to keep the space as it is and avoid partitioning it.

0:15:16 > 0:15:17# I like it, like it, come on

0:15:17 > 0:15:19# Come on, come on

0:15:19 > 0:15:21# I like it, like it... #

0:15:21 > 0:15:25But moving upstairs, things go to the other extreme.

0:15:25 > 0:15:27There's just one much smaller room,

0:15:27 > 0:15:30accessible from the front reception area.

0:15:30 > 0:15:34It's not really working for me but there is some interesting news.

0:15:34 > 0:15:37Consent for a change of use has been granted.

0:15:37 > 0:15:39It used to have a B1 status.

0:15:39 > 0:15:43That's a classification which covers offices and light industry.

0:15:43 > 0:15:48Wiltshire Council have given the go-ahead for a live-work unit.

0:15:48 > 0:15:51So it's part B1 and part C3.

0:15:51 > 0:15:55Now, the C3 classing is for dwelling houses

0:15:55 > 0:15:58and so that's definitely residential.

0:15:58 > 0:16:01This could be perfect for somebody with a small business

0:16:01 > 0:16:03who isn't afraid of, quite literally,

0:16:03 > 0:16:05bringing their work home with them.

0:16:05 > 0:16:11That planning consent also includes increasing the bedrooms from one to two,

0:16:11 > 0:16:14which could be just perfect for someone.

0:16:14 > 0:16:17Whenever I look around property, I'm always thinking,

0:16:17 > 0:16:20"Now, how can I add value?"

0:16:20 > 0:16:24I think I've spotted a way to really up the price of this place.

0:16:24 > 0:16:28This auction lot, it sits amongst local residential property.

0:16:28 > 0:16:32The council have granted a change of use for part-commercial, part-residential.

0:16:32 > 0:16:36What's to stop them granting a complete change of use

0:16:36 > 0:16:38to residential in the future?

0:16:38 > 0:16:43A two-bedroom house could make as much as £175,000.

0:16:43 > 0:16:46That's most definitely something to consider,

0:16:46 > 0:16:49especially given the predominantly residential location

0:16:49 > 0:16:51this little lot sits in.

0:16:51 > 0:16:54There's a parking area right beside the building,

0:16:54 > 0:16:58but unfortunately it doesn't come with a private garden.

0:16:58 > 0:17:01Having said that, if you're looking for some green space,

0:17:01 > 0:17:04there's a cricket club practically next door.

0:17:04 > 0:17:08What does the local expert from the auction house that sold it

0:17:08 > 0:17:12think of this place with a guide price of 95 grand?

0:17:12 > 0:17:15As a commercial unit, I think it works quite well because

0:17:15 > 0:17:17of its location to the town centre.

0:17:17 > 0:17:20It's very central and there's a lot of space that can be used.

0:17:20 > 0:17:23What could this property fetch on the resale market

0:17:23 > 0:17:26if the new owner followed the approved plans?

0:17:26 > 0:17:31I would say that the resale value is between £130,000 and £150,000.

0:17:31 > 0:17:33And if rented out?

0:17:33 > 0:17:35If we were to rent the commercial unit out,

0:17:35 > 0:17:37I would estimate, as is,

0:17:37 > 0:17:41between £5,500 and £6,500 per annum.

0:17:41 > 0:17:45If planning were approved to make this completely residential

0:17:45 > 0:17:48in the future, the estate agent reckons

0:17:48 > 0:17:52that would increase its resale value to around 175 grand.

0:17:52 > 0:17:54Worth keeping in mind.

0:17:54 > 0:17:57This would work well as a mixed-use unit

0:17:57 > 0:18:02but obtaining a wholly residential status, that sees the real return.

0:18:02 > 0:18:04The lack of garden could be a deal breaker,

0:18:04 > 0:18:07but I think the central location will make up for that.

0:18:07 > 0:18:11Let's see who fancied this as we go to auction.

0:18:12 > 0:18:17Lot number 17 then, if you will, which is very close to the centre.

0:18:17 > 0:18:20Attractive exterior, there we are.

0:18:20 > 0:18:23Somebody start me, save my breath, £100,000, somebody.

0:18:23 > 0:18:29£100,000, somebody. Yes, £100,000 it is, we'll go in twos.

0:18:29 > 0:18:33At £100,000, and two may I say? Two, Sir? £100,000 against you.

0:18:33 > 0:18:37The bid's over there, 102? Yes, no?

0:18:37 > 0:18:41102, OK. 104. OK, 104.

0:18:41 > 0:18:44106 to you, sir, 106.

0:18:44 > 0:18:46108. 110 to you, sir? At 108.

0:18:46 > 0:18:50110, OK. The bid is there at £110,000.

0:18:50 > 0:18:5411, I'll take. The bid is sat down here. At £110,000 it is.

0:18:54 > 0:18:55I'll take 11 from anyone.

0:18:55 > 0:19:00At £110,000, 11 anybody, please, yes or no?

0:19:00 > 0:19:0611, OK. At 11. 111 and 12, sir. At £111,000, 12?

0:19:06 > 0:19:08Yes, go on then. 500 then, if you like.

0:19:08 > 0:19:10Help you on. No?

0:19:11 > 0:19:15500, can't miss it for that at 500. £111,500.

0:19:15 > 0:19:20You're both the same at the back there. At 111,500. 12, do you mean?

0:19:20 > 0:19:23Yes or no? Otherwise I'm back to here at £111,500.

0:19:23 > 0:19:29For the first time. £111,500 for the second time. Last chance.

0:19:29 > 0:19:32£111,500, third and last time, you're done.

0:19:32 > 0:19:38That successful bid of £111,500 came from Michael,

0:19:38 > 0:19:40who was at the auction with his dad.

0:19:40 > 0:19:43Michael's a photographer and moved back to this area from London

0:19:43 > 0:19:46a year ago after completing his Master's degree.

0:19:46 > 0:19:49I met him back at the property to find out more.

0:19:49 > 0:19:51# Photograph

0:19:51 > 0:19:54# Photographer... #

0:19:54 > 0:19:57- Michael, congratulations. - Thank you very much.

0:19:57 > 0:20:00I love Corsham. It's always a wonderful place to visit for me.

0:20:00 > 0:20:02Tell me about this auction purchase

0:20:02 > 0:20:06- because you weren't actually bidding on auction day, were you? - No, I wasn't.

0:20:06 > 0:20:09I chickened out at the last minute and my old man did the bidding.

0:20:09 > 0:20:11So why did you want it?

0:20:11 > 0:20:14Well, I'm a photographer. I've got a current studio that I rent

0:20:14 > 0:20:18and I have, over the past year or so, kept my eye half-open

0:20:18 > 0:20:21for somewhere I can live and work together.

0:20:21 > 0:20:23When this came up with permission, it was commercial,

0:20:23 > 0:20:26it came up with permission to change to live-work,

0:20:26 > 0:20:30Which for me is perfect, because I can have everything in one place.

0:20:30 > 0:20:33There's no commute, I don't have to worry about parking

0:20:33 > 0:20:35or driving in, so I wanted somewhere that was central.

0:20:35 > 0:20:37Somewhere that people had heard of.

0:20:37 > 0:20:40There's good access here, there's good parking outside.

0:20:40 > 0:20:43It just seemed to make good business sense, really.

0:20:43 > 0:20:45Michael's currently renting a studio nearby

0:20:45 > 0:20:47but the lease is up in six weeks.

0:20:47 > 0:20:49That can only mean one thing.

0:20:49 > 0:20:53The timescale to do the work and move in here will also be six weeks.

0:20:53 > 0:20:56At least there are approved plans in place already,

0:20:56 > 0:20:59so he can start straight away.

0:20:59 > 0:21:01Michael, I know this lot came with planning permission.

0:21:01 > 0:21:05Are you going to be sticking with the plans or changing them at all?

0:21:05 > 0:21:06No, not sticking with them at all.

0:21:06 > 0:21:09The principle of changing it to live-work, yes.

0:21:09 > 0:21:10The actual layout, no.

0:21:10 > 0:21:14In fact, Michael's going to keep it as a one-bedroom

0:21:14 > 0:21:15but will change the configuration,

0:21:15 > 0:21:17including the position of the stairs,

0:21:17 > 0:21:20to create more space for his photographic studio.

0:21:20 > 0:21:23Are you going to need planning permission to do that?

0:21:23 > 0:21:27I don't need planning because it's not affecting the exterior of the property at all

0:21:27 > 0:21:30but I will need to consult with building regs to make sure

0:21:30 > 0:21:35we put the new stairs in at the right angle to conform and tick all the right boxes.

0:21:35 > 0:21:39Michael also has to meet a regulation for a live-work property,

0:21:39 > 0:21:41whereby clients must be able to get from outside

0:21:41 > 0:21:45to the commercial area without going through the private area.

0:21:45 > 0:21:47This means partitioning will be required

0:21:47 > 0:21:51and that staircase might cause an issue with space.

0:21:51 > 0:21:54Michael also plans to install a new kitchen and bathroom,

0:21:54 > 0:21:55so what's his budget?

0:21:55 > 0:21:58I'd like to think, this might be hugely optimistic,

0:21:58 > 0:22:02if I go over 3,500 for the work, I'll be disappointed.

0:22:02 > 0:22:05- I'm going to do a lot of work myself.- What?!

0:22:05 > 0:22:09- I'm going to be calling in a lot of favours. - £3,500 for all that work?- Exactly.

0:22:09 > 0:22:13There'll be a lot of late nights, a lot of favours called in, a lot of friends.

0:22:14 > 0:22:18Here's hoping Michael has a lot of friends.

0:22:18 > 0:22:21He'll need them if he's going to complete all this in record time

0:22:21 > 0:22:22on a record budget.

0:22:22 > 0:22:26# I'll be there for you

0:22:26 > 0:22:28# When the rain starts to fall... #

0:22:28 > 0:22:30But what about the long-term plan,

0:22:30 > 0:22:34the idea of turning it into a purely residential property?

0:22:34 > 0:22:39Has Michael ever thought about going down that lucrative road?

0:22:39 > 0:22:42I have a feeling, common sense tells me, that if I turn it into

0:22:42 > 0:22:44wholly residential, it will be worth more than

0:22:44 > 0:22:47- it will as office space.- Absolutely.

0:22:47 > 0:22:49Because of the way it works, but figures, not really sure.

0:22:49 > 0:22:53This is my first property, so I don't know. It's something I have to research.

0:22:53 > 0:22:58Michael, I had a chat with a few agents and it will be around £175,000, the current value.

0:22:58 > 0:23:02As a residential property? Certainly worth looking into for the future.

0:23:02 > 0:23:06Great meeting you. Good luck. I can't wait to see what you do to it when it turns into a studio.

0:23:06 > 0:23:09- I'm quite curious, too. Thank you very much.- Thank you, Michael.

0:23:10 > 0:23:13Six weeks and three and a half grand?!

0:23:13 > 0:23:15Michael has got his work cut out.

0:23:15 > 0:23:18The pressure is most definitely on for him.

0:23:18 > 0:23:21He needs to move his business because his lease is up.

0:23:21 > 0:23:23You can find out if he manages to move in

0:23:23 > 0:23:28and make this home business unit work for him later on the programme.

0:23:29 > 0:23:32Coming up - this two-bed in Lincolnshire

0:23:32 > 0:23:34has me in a tight squeeze.

0:23:34 > 0:23:36Somebody's actually taken part of the bedroom

0:23:36 > 0:23:38to create this little corridor.

0:23:39 > 0:23:41We return to Wiltshire

0:23:41 > 0:23:44to see whether this former stable needed some help from Dad.

0:23:44 > 0:23:47My father, who's retired, has spent a lot of time here.

0:23:47 > 0:23:49I owe him a great deal of gratitude.

0:23:50 > 0:23:52But first, in London,

0:23:52 > 0:23:56have they managed to dig their way out of that basement?

0:23:56 > 0:24:00It was great to get started but it took a lot longer than we thought.

0:24:03 > 0:24:07Time now to return to affluent Maida Vale in West London,

0:24:07 > 0:24:11where earlier I met IT salesperson Liz and electrician Anthony.

0:24:11 > 0:24:15They were the proud new owners of this rather grotty basement.

0:24:15 > 0:24:18# Here I sit in this dark basement

0:24:20 > 0:24:23# Where the sun don't ever shine... #

0:24:23 > 0:24:27Liz and Anthony bought this huge junk-filled basement area

0:24:27 > 0:24:30at auction for £59,000.

0:24:30 > 0:24:36They were the ideal couple to buy it because they own the two-bedroom garden flat right on top of it.

0:24:38 > 0:24:43They had grand plans to convert it into a liveable space,

0:24:43 > 0:24:47join it to their flat above and add an extension, creating one super split-level flat.

0:24:47 > 0:24:50A spiral staircase somewhere.

0:24:50 > 0:24:55Looking at extra bedrooms, maybe a playroom, maybe a sauna.

0:24:55 > 0:24:57MARTIN LAUGHS

0:24:57 > 0:25:01- You're shaking your head.- Yeah. - It'd be perfect for it!

0:25:01 > 0:25:04Perfect indeed, but we don't live in a perfect world.

0:25:04 > 0:25:07Getting planning permission could be difficult here.

0:25:07 > 0:25:10Digging out the basement for extra height would be a major job

0:25:10 > 0:25:14and make the whole project very, very expensive.

0:25:14 > 0:25:15So, four YEARS later,

0:25:15 > 0:25:19has converting this into their dream home been a nightmare?

0:25:40 > 0:25:43Out the back, the level we're standing on at the moment

0:25:43 > 0:25:46was the level that went right through to the back of the house.

0:25:46 > 0:25:50We've dug down about a metre and a half, two metres.

0:25:50 > 0:25:54Created a new stairwell that comes out, running on the boundary wall.

0:25:54 > 0:25:58Therefore we created a little patio down there

0:25:58 > 0:26:01which is a bit more private. It's not quite finished,

0:26:01 > 0:26:03but I'd say we're getting there.

0:26:03 > 0:26:06The planning permission, we've had to set it back 300mm,

0:26:06 > 0:26:08cos they wanted it to look like an extension

0:26:08 > 0:26:10rather than part of the original features.

0:26:10 > 0:26:14We added 1,000 square foot, just short of.

0:26:14 > 0:26:17It's bigger than the actual flat because you've got the extension.

0:26:17 > 0:26:21Anthony isn't kidding about the size. Just look inside.

0:26:29 > 0:26:30Wow!

0:26:30 > 0:26:34Gone are those oppressively low ceilings and tiny rooms.

0:26:34 > 0:26:38In their place, a massive living, dining and kitchen area

0:26:38 > 0:26:43that's all opened from front to back and positively filled with light.

0:26:45 > 0:26:50So, with a project of this scale, did everything go to plan?

0:26:50 > 0:26:53Took us, I think, 18 months to sort out.

0:26:53 > 0:26:56The lease for the basement was a different lease to the freehold,

0:26:56 > 0:26:58so that took a lot of sorting out.

0:26:58 > 0:27:01Then we had to get the design done, be happy with the design.

0:27:01 > 0:27:05Planning permission was refused first time, so we had to go back.

0:27:05 > 0:27:09Meetings at the council, meetings with the neighbours.

0:27:09 > 0:27:10So there was a lot to do.

0:27:10 > 0:27:14We've been moved in for two or three weeks now,

0:27:14 > 0:27:18- we're not quite finished yet but the first builders were here about a year ago?- Yeah.

0:27:18 > 0:27:22It was great to get it started but it took a lot longer than we thought.

0:27:22 > 0:27:25Well, as we now know,

0:27:25 > 0:27:29it's taken Liz and Anthony four years to get to this point,

0:27:29 > 0:27:32and in that time, they've also added two new members to their family.

0:27:32 > 0:27:35# Baby, baby, baby

0:27:35 > 0:27:36# All right

0:27:36 > 0:27:39# Baby, baby, baby

0:27:39 > 0:27:43# No, I thought you'd always be mine, mine... #

0:27:44 > 0:27:48Georgina is almost two and Alexandra is six months.

0:27:48 > 0:27:51When we'd had one baby in the house, pregnant quite quickly

0:27:51 > 0:27:53with the second one, I did think,

0:27:53 > 0:27:55"Let's just sell this with the planning permission

0:27:55 > 0:27:58"and go and get a house that would be much easier

0:27:58 > 0:28:01"cos this is going to be quite a tough 12 months."

0:28:01 > 0:28:04I'm glad now that we've done it but there were lots of times

0:28:04 > 0:28:06we thought, "It'd be so much easier."

0:28:06 > 0:28:08But Anthony wanted to project manage it

0:28:08 > 0:28:10and we're going to create such a big space.

0:28:10 > 0:28:12It's definitely been worth it.

0:28:12 > 0:28:14Liz and Anthony's flat upstairs

0:28:14 > 0:28:17had two bedrooms but with the addition of the extension,

0:28:17 > 0:28:20they've gained a third bedroom and an extra bathroom.

0:28:20 > 0:28:24A not-so-spiral staircase has been built to link the two floors

0:28:24 > 0:28:27and downstairs, no, not a sauna,

0:28:27 > 0:28:32but an extra cloakroom which is more practical for a young family.

0:28:32 > 0:28:35Creating such a light and airy space in this basement

0:28:35 > 0:28:37must have been quite a challenge.

0:28:37 > 0:28:42I'm quite happy with the way it's quite well-lit at the minute. We weren't sure ourselves.

0:28:42 > 0:28:46- Until it's dug out, until it's finished and painted, you don't know.- Yeah.

0:28:46 > 0:28:50There's a bit of an element of risk. It gets the sun at the right time.

0:28:50 > 0:28:53When you're living somewhere, it's quite easy to do a kitchen

0:28:53 > 0:28:56and have a feel of how it's going to look,

0:28:56 > 0:28:59but because this wasn't even a room to start with,

0:28:59 > 0:29:01it was quite difficult for us to imagine.

0:29:01 > 0:29:05But, yeah, we're really pleased with all the lighting and how it fits.

0:29:05 > 0:29:09Anthony and Liz are coy about how much all this has cost,

0:29:09 > 0:29:12but we know that they bought the basement for £59,000

0:29:12 > 0:29:16and previously estimated around 100,000 for the digging out alone.

0:29:16 > 0:29:19So with the extension and high quality of the finish they added,

0:29:19 > 0:29:22let's say their total spend will be a very pretty penny.

0:29:24 > 0:29:27We asked two local estate agents to give their opinions

0:29:27 > 0:29:30on this newly created split-level flat.

0:29:30 > 0:29:32I have to say I was amazed.

0:29:32 > 0:29:34They've done an incredible job here,

0:29:34 > 0:29:36by taking the extension out as far as they have,

0:29:36 > 0:29:40and also by creating a patio to this lower ground floor area.

0:29:40 > 0:29:43It works really well. I think this sort of property

0:29:43 > 0:29:45will be very appealing to buyers in this area.

0:29:45 > 0:29:46It gives an alternative.

0:29:46 > 0:29:50It's somewhere between buying a house or buying a flat on one level.

0:29:50 > 0:29:54It gives you that option with a private outside space, which is always hugely desirable.

0:29:54 > 0:29:58The standard of finish is very good. The flooring is excellent.

0:29:58 > 0:30:01The lighting and everything works really well.

0:30:01 > 0:30:04This sort of property is very much what people are looking for.

0:30:04 > 0:30:06It's a very family-orientated space

0:30:06 > 0:30:09and it'll work very well for a variety of uses.

0:30:09 > 0:30:12There's a dining, living and entertaining area.

0:30:12 > 0:30:15What kind of rent could this property earn?

0:30:15 > 0:30:17On a rental basis,

0:30:17 > 0:30:21I would advise putting this on in the region of £4,250 a month.

0:30:21 > 0:30:24It would be very desirable to families in the area,

0:30:24 > 0:30:26corporate relocation, embassies, etc.

0:30:26 > 0:30:28I'd expect it to let

0:30:28 > 0:30:33for between £4,000 and £4,500 per calendar month.

0:30:33 > 0:30:35Wow! Yeah, amazing.

0:30:35 > 0:30:39Wow. Did you hear that, Georgina? That is big rent.

0:30:39 > 0:30:42Georgina looked as pleased as her parents.

0:30:42 > 0:30:44What about the resale value?

0:30:44 > 0:30:46I think it's such a unique space,

0:30:46 > 0:30:48you will always achieve a premium in here.

0:30:48 > 0:30:51Gut feel says to me it's around about the £1 million mark.

0:30:51 > 0:30:54In the current market, I would expect this property to sell

0:30:54 > 0:30:56in the region of 1 million to 1.1 million.

0:30:56 > 0:30:58Yeah! Wow.

0:30:58 > 0:31:00- Pop the corks.- It's amazing.

0:31:02 > 0:31:04- Wow.- Yeah, I mean...

0:31:04 > 0:31:08that's an amazing transformation. Yeah, it's huge.

0:31:08 > 0:31:10Has it been worth it now?

0:31:10 > 0:31:12Yeah, I think so.

0:31:12 > 0:31:14Did they ever imagine that adding the basement

0:31:14 > 0:31:17onto their existing flat would add so much value?

0:31:17 > 0:31:18In our heads,

0:31:18 > 0:31:21we hadn't thought of it reaching that sort of figure at all.

0:31:21 > 0:31:24- We're chuffed.- Yeah, it's brilliant.

0:31:24 > 0:31:27With that kind of resale estimate of around £1 million,

0:31:27 > 0:31:31are Liz and Anthony tempted to sell?

0:31:31 > 0:31:34Not yet. We're going to live in this and enjoy it for a while.

0:31:34 > 0:31:36I think so. We've got the space now.

0:31:36 > 0:31:40So are the couple enjoying their new home?

0:31:40 > 0:31:43We haven't had time to enjoy it yet, it's only been two or three weeks

0:31:43 > 0:31:46but we can see everything's started to slow down a bit

0:31:46 > 0:31:49and looking forward to having the time running around with the kids,

0:31:49 > 0:31:50makes it all seem worth it.

0:31:55 > 0:31:59I'm in Boston, a historic market town in Lincolnshire.

0:31:59 > 0:32:02It's home to the largest parish church in England,

0:32:02 > 0:32:07known locally as the Stump, but how much cash did the buyer

0:32:07 > 0:32:10stump up at auction for the lot I'm visiting?

0:32:10 > 0:32:13The property I'm here to see is just ten minutes' walk

0:32:13 > 0:32:16from the town centre, down this little lane.

0:32:16 > 0:32:18It's actually located right at the end.

0:32:18 > 0:32:21Clearly, access is a bit of a problem.

0:32:21 > 0:32:26Yep, those with bad reversing or parking skills need not apply.

0:32:26 > 0:32:31This is it. Had a guide price of 38 to 42,000 quid.

0:32:31 > 0:32:34It looks kind of intriguing from the outside.

0:32:34 > 0:32:36Looks like new windows.

0:32:36 > 0:32:38Some of the brickwork needs repointing,

0:32:38 > 0:32:41but I've got a good feeling about this bit of Boston.

0:32:41 > 0:32:43MUSIC: "More Than A Feeling" by Boston

0:32:43 > 0:32:46- # More than a feeling - More than a feeling

0:32:46 > 0:32:50# When I see Mary Ann walk away... #

0:32:50 > 0:32:52- Oh. - HE COUGHS

0:32:52 > 0:32:54That's not a very good start. Look at that.

0:32:54 > 0:32:57Seriously bad damp.

0:32:57 > 0:33:00What on earth is causing that?

0:33:00 > 0:33:04Have a look if I can see anything out here.

0:33:04 > 0:33:08No, There's no immediate, obvious reason why that's like that.

0:33:08 > 0:33:12It needs a bit more investigation. We'll look at that a bit more later.

0:33:12 > 0:33:15Anyway, the first thing you notice about this room

0:33:15 > 0:33:16is it's triangular shaped.

0:33:16 > 0:33:20It's narrow at the front and it gets wider. That is really weird

0:33:20 > 0:33:23Fireplace, a real one, which is nice to have,

0:33:23 > 0:33:25and then you come through to the rear living area

0:33:25 > 0:33:27and look how much bigger it is

0:33:27 > 0:33:29than it is when you come through the front door.

0:33:29 > 0:33:31I actually quite like that.

0:33:31 > 0:33:34It's like it fans out to create basically a lot more space,

0:33:34 > 0:33:36and this room especially, loads of light pouring in.

0:33:36 > 0:33:38I like this, sort of open-plan stairs

0:33:38 > 0:33:42up to the bedrooms and the kitchen at the back.

0:33:42 > 0:33:43Quirky, yes.

0:33:43 > 0:33:45Likeable, most definitely.

0:33:46 > 0:33:50The kitchen does look a bit tired and probably needs to be ripped out,

0:33:50 > 0:33:53but upstairs, there are two bedrooms.

0:33:53 > 0:33:55The first is a good size,

0:33:55 > 0:34:00but the second is a funny shape and pretty titchy to boot.

0:34:01 > 0:34:04The reason it's so small is that somebody's actually taken

0:34:04 > 0:34:08part of the bedroom to create this little corridor,

0:34:08 > 0:34:10and it really is horrible. It's dark.

0:34:10 > 0:34:13They've tried to put a window in here to give you more light,

0:34:13 > 0:34:15but basically, it just doesn't work.

0:34:15 > 0:34:17You wind your way down here,

0:34:17 > 0:34:19and eventually, you come into the bathroom.

0:34:19 > 0:34:23So that clearly doesn't work at all, to my mind.

0:34:23 > 0:34:25But I think there's a simple solution,

0:34:25 > 0:34:28because if you merely moved the stairs from where they are

0:34:28 > 0:34:30to this side of the room downstairs,

0:34:30 > 0:34:33you then have the stairs coming up there,

0:34:33 > 0:34:37a little landing area, into the bathroom, into the bedroom - bingo!

0:34:39 > 0:34:42But don't let's go counting our winnings just yet.

0:34:42 > 0:34:45Moving stairs is generally a pretty costly exercise.

0:34:45 > 0:34:50You'd have to weigh up whether it was going to be worth your while.

0:34:50 > 0:34:52If you were going to rent the property out,

0:34:52 > 0:34:54it make more sense to leave it as is.

0:34:56 > 0:34:58So, we've decided it's a bit quirky.

0:34:58 > 0:35:02Let's look at the property from another point of view.

0:35:02 > 0:35:04The guide price - £38,000 to £42,000.

0:35:04 > 0:35:07Let's assume you spend towards the top end of that, 42,

0:35:07 > 0:35:10you spend about £8,000 doing it up, including fees,

0:35:10 > 0:35:13you've got £50,000 invested in this place.

0:35:13 > 0:35:15Around here, this kind of property, done up,

0:35:15 > 0:35:19is going to get you around £500 a month in rent.

0:35:19 > 0:35:23That's £6,000 year on a £50,000 investment.

0:35:23 > 0:35:26That is a 12% yield.

0:35:26 > 0:35:27That's really good!

0:35:27 > 0:35:30- MUSIC: Theme from "Cheers" - Cheers to that, I'd say.

0:35:30 > 0:35:34Done up, this Boston property could really start reaping rewards.

0:35:34 > 0:35:37You also get some outside space and a lean-to shed,

0:35:37 > 0:35:39which could be pretty useful.

0:35:39 > 0:35:43And all for a guide price of £38,000 to £42,000.

0:35:43 > 0:35:45It whet my whistle for sure.

0:35:45 > 0:35:48Let's hear what a local estate agent thinks.

0:35:48 > 0:35:52My first impression of this property is that it's centrally situated,

0:35:52 > 0:35:54it has been modernised.

0:35:54 > 0:35:57It does want a little bit of updating and renovating,

0:35:57 > 0:36:00just to smarten it up.

0:36:01 > 0:36:04And what does the expert think the property would fetch

0:36:04 > 0:36:05on the rental market?

0:36:07 > 0:36:12In good condition, it would bring in around £500 per calendar month.

0:36:13 > 0:36:15And the resale market?

0:36:15 > 0:36:17Value-wise, at the present,

0:36:17 > 0:36:22I would have thought somewhere around £50,000, £55,000.

0:36:23 > 0:36:27Well, quirky, cute and a good investment.

0:36:27 > 0:36:30Either a lovely place to live or a good rental yield.

0:36:30 > 0:36:32Can't go wrong, really.

0:36:32 > 0:36:34Let's see who agreed when it went under the hammer.

0:36:36 > 0:36:39We move out now to lot number five.

0:36:39 > 0:36:42The guide price is £38,000 to £42,000.

0:36:42 > 0:36:44Where are you going to start me?

0:36:44 > 0:36:48A £30,000 bid there. 35. At 40,000.

0:36:48 > 0:36:5040,000, I'm bid.

0:36:50 > 0:36:5145,000.

0:36:51 > 0:36:53And 500.

0:36:53 > 0:36:5746,000. 45,500 here in the middle of the room.

0:36:57 > 0:37:00Are you going £46,000?

0:37:00 > 0:37:01No?

0:37:01 > 0:37:04At £45,500, then, for the first time.

0:37:04 > 0:37:07Any more bids? 46,000? New bidder.

0:37:07 > 0:37:0946,000. 500.

0:37:10 > 0:37:1347,000. 500.

0:37:14 > 0:37:1648,000. 500.

0:37:16 > 0:37:1849,000. 500.

0:37:18 > 0:37:2150,000. 500.

0:37:21 > 0:37:2351,000. 500.

0:37:25 > 0:37:2852,000. 500.

0:37:29 > 0:37:32No? £52,000 I'm bid.

0:37:32 > 0:37:34Against the bar at £52,000, then.

0:37:34 > 0:37:37Call it up three times at £52,000.

0:37:37 > 0:37:41For the first time, for the second, for the third and last time.

0:37:41 > 0:37:45Are there any more bids? Thank you, sir.

0:37:45 > 0:37:50That successful final bid was placed by Mohammed, who's an eye surgeon.

0:37:50 > 0:37:52MUSIC: "Eye Of The Tiger" by Survivor

0:37:52 > 0:37:57Even at £52,000, £10,000 over the upper guide price,

0:37:57 > 0:38:00I'd say that, when it comes to a bargain,

0:38:00 > 0:38:02Mohammed clearly has the eye of a tiger.

0:38:06 > 0:38:10I caught up with him to check out his vision for the property.

0:38:13 > 0:38:17- Mohammed, lovely to meet you. - Nice to meet you.- Congratulations.

0:38:17 > 0:38:18Thank you very much.

0:38:18 > 0:38:20Why did you want to buy this quirky house.

0:38:20 > 0:38:23To be quite honest, I just stumbled onto it.

0:38:23 > 0:38:28I just typed on the internet, "Houses in Boston for sale."

0:38:28 > 0:38:31And this came up in an auction site.

0:38:31 > 0:38:35And I looked at it and it said, "38 to 42."

0:38:35 > 0:38:38I thought, "Yeah, well, if I have to pay 42,

0:38:38 > 0:38:42"I'm still quids in," so I rang, and I said, "Can I go and view?"

0:38:42 > 0:38:46- He said, "It's too late. The auction's next week."- Oh, no!

0:38:46 > 0:38:47So the auction was on Tuesday.

0:38:47 > 0:38:52I came round on the Thursday, had a look through the windows,

0:38:52 > 0:38:55I saw the room on the front fanning out

0:38:55 > 0:38:58and I looked through the kitchen

0:38:58 > 0:39:01and thought, "Well, it's not a bad kitchen.

0:39:01 > 0:39:04"42, what's the worst that's going to happen to it?

0:39:04 > 0:39:08"Fall down and I have to rebuild it? I'm still quids in."

0:39:08 > 0:39:11Well, it's a risky strategy, but Mohammed does have

0:39:11 > 0:39:14a portfolio of properties locally, including a neighbouring one,

0:39:14 > 0:39:18so he had some idea of what he was getting into.

0:39:18 > 0:39:19But as you well know,

0:39:19 > 0:39:22I believe you should always have a good look around the place

0:39:22 > 0:39:25before buying it at auction. What does he have planned?

0:39:25 > 0:39:30I want to make it...nice, because from experience,

0:39:30 > 0:39:36the more the place is cared for and presented properly,

0:39:36 > 0:39:38the better the tenants look after it...

0:39:38 > 0:39:44- Yep.- ..and the longer they stay. So I'm not going to skimp.

0:39:44 > 0:39:48So I'm going to rip that out and obviously take the carpets off,

0:39:48 > 0:39:52decoration, and outside, there is pointing.

0:39:52 > 0:39:55I am not sure whether it needs a damp-proof course.

0:39:55 > 0:40:00So I don't think it's structurally a big do,

0:40:00 > 0:40:07so £4,000, £5,000 to £7,000, I think we're all right.

0:40:07 > 0:40:11Mohammed's planning to leave the stairs where they are,

0:40:11 > 0:40:14but he does have an idea that might work even better.

0:40:14 > 0:40:19- I'm intending to open a door in there.- Oh!

0:40:19 > 0:40:23Because there is an annexe at the back,

0:40:23 > 0:40:26and put the toilet and shower room,

0:40:26 > 0:40:28and maybe to increase its let-ability,

0:40:28 > 0:40:31convert this into a bedroom.

0:40:31 > 0:40:32So the front would be a bedroom,

0:40:32 > 0:40:36so straight away, you have three bedrooms.

0:40:36 > 0:40:40A bathroom here to serve that bedroom,

0:40:40 > 0:40:44and this may compensate for the odd-looking layout upstairs.

0:40:44 > 0:40:48And do you have an idea of what rental you might get for it?

0:40:48 > 0:40:51I think, if we're going to convert this into a third bedroom,

0:40:51 > 0:40:55I would think we could realise £600, easy.

0:40:55 > 0:40:56- Wow!- Yeah.

0:40:56 > 0:40:59Sounds like Mohammed has done his homework.

0:40:59 > 0:41:03One way that he can keep his budget down to between £5,000 to £7,000

0:41:03 > 0:41:07is by calling on his son, Tamim, here on the right, who's a surveyor,

0:41:07 > 0:41:10and Tamim's builder colleague, Ross.

0:41:10 > 0:41:13But after something I overheard earlier,

0:41:13 > 0:41:17I get the impression Mohammed might be a hard taskmaster.

0:41:17 > 0:41:19Now, I heard him on the phone to you earlier.

0:41:19 > 0:41:23- It's an interesting relationship, isn't it?- It's a father-son thing.

0:41:23 > 0:41:27I respect him. He tells me what I have to do. Standard.

0:41:27 > 0:41:28- And you do it.- And I do it.

0:41:28 > 0:41:32And it doesn't just stop at me. He gave Ross what for earlier as well.

0:41:32 > 0:41:35- He shouts at you as well? - Oh, yeah! I get it as well.

0:41:35 > 0:41:37You are lucky YOU got here on time!

0:41:37 > 0:41:39As soon as the work starts,

0:41:39 > 0:41:44my father considers us as employees and not as family.

0:41:44 > 0:41:47So we get the job done, we do it properly, we get paid.

0:41:47 > 0:41:50- Well-defined lines. - He gets his investment.

0:41:50 > 0:41:53- What do you think about this house? - It's got potential.

0:41:53 > 0:41:57There's not a lot to do in terms of the structure of the building,

0:41:57 > 0:42:01but it's pretty much cosmetic. Give it a quick turnover,

0:42:01 > 0:42:06- hopefully we'll spend within our budget of £5,000.- Yes.- Five?

0:42:06 > 0:42:09Yeah. I mean, that's just to be safe, plus the contingency.

0:42:09 > 0:42:12What we're planning on doing is obviously

0:42:12 > 0:42:15adding another bathroom downstairs

0:42:15 > 0:42:18and changing the lounge into a bedroom, hopefully,

0:42:18 > 0:42:20and basically getting it as a rental property.

0:42:20 > 0:42:23And do you get told off if it's not done right?

0:42:23 > 0:42:26Yeah, of course, like any other client would tell you off

0:42:26 > 0:42:28if you were underperforming.

0:42:28 > 0:42:32- Exactly.- You have to shine like you do with anybody else.

0:42:33 > 0:42:36Mohammed would like to turn the property around

0:42:36 > 0:42:39in one to two months. He has his own particular way

0:42:39 > 0:42:43of making sure that his son, Tamim, gets things just right.

0:42:43 > 0:42:46So how are you going to get him motivated to do it?

0:42:46 > 0:42:50- Well, kick his backside, I suppose! - That usually works.

0:42:50 > 0:42:54Yeah, he has to obey! It's a cultural thing.

0:42:56 > 0:42:59Well, surgeon Mohammed certainly seems

0:42:59 > 0:43:02to have eyed up a bargain with this place.

0:43:02 > 0:43:05But will son, Tamim, share his clear vision

0:43:05 > 0:43:08and get this place sorted for just £5,000?

0:43:08 > 0:43:12If not, well, I wouldn't like to be in his shoes!

0:43:12 > 0:43:16Join us later in the show to see how it turns out.

0:43:19 > 0:43:22- Months have gone by since we last saw those properties.- Yes.

0:43:22 > 0:43:25Do they look any different? Has the work been done?

0:43:25 > 0:43:27I think we should go back and find out.

0:43:30 > 0:43:33Time now to head back to Corsham in Wiltshire,

0:43:33 > 0:43:36where earlier we met Michael, a photographer,

0:43:36 > 0:43:38originally from this area.

0:43:38 > 0:43:42He bought this property at auction for £111,500.

0:43:45 > 0:43:48It was sold with planning permission already approved

0:43:48 > 0:43:50for a two-bedroom live-work unit.

0:43:50 > 0:43:54The only question was, would Michael stick to the existing plans?

0:43:55 > 0:43:57No. I'm not sticking with them at all.

0:43:57 > 0:44:00The principle of changing it to live-work, yes.

0:44:00 > 0:44:02The actual layout, no.

0:44:02 > 0:44:05Michael's plans were to keep the property as a one-bedroom

0:44:05 > 0:44:07and change the configuration,

0:44:07 > 0:44:09including the position of the stairs,

0:44:09 > 0:44:13to make more space for his photographic studio.

0:44:13 > 0:44:17The extra space he would gain by not creating that second bedroom

0:44:17 > 0:44:18suited his needs much better.

0:44:18 > 0:44:21But with a timescale of only six weeks

0:44:21 > 0:44:23and a budget of just £3,500,

0:44:23 > 0:44:26would he really be able to turn this around in a flash?

0:44:26 > 0:44:30We've returned 11 weeks later to see

0:44:30 > 0:44:34if he's had a negative experience or made it picture-perfect.

0:44:35 > 0:44:37# Girls on film... #

0:44:37 > 0:44:40Well, from the outside, it appears nothing has changed,

0:44:40 > 0:44:42but it's inside that we really want to see.

0:44:42 > 0:44:44# Girls on film

0:44:46 > 0:44:47# Girls on film

0:44:50 > 0:44:52# Girls on film

0:44:53 > 0:44:55# Girls on film... #

0:44:57 > 0:45:00On the ground floor, it's stayed basically the same.

0:45:00 > 0:45:03The studio hasn't changed at all. It's the same layout.

0:45:03 > 0:45:05In the front, the old cottage part of the property,

0:45:05 > 0:45:09which will be my drawing room/kitchen,

0:45:09 > 0:45:13we've put a wall in, which has divided the hallway

0:45:13 > 0:45:17and the main entrance to the property from the residential part,

0:45:17 > 0:45:20because when it's dual-use, you need a way of getting clients

0:45:20 > 0:45:22from the outside to the commercial part

0:45:22 > 0:45:24without going through the residential part,

0:45:24 > 0:45:27so that required a wall to go up to make a hallway.

0:45:27 > 0:45:30But other than that, other than moving the stairs,

0:45:30 > 0:45:32because they had such a big footprint,

0:45:32 > 0:45:36moved them across to the studio, so we've got more floor space,

0:45:36 > 0:45:38again, to put the kitchen downstairs.

0:45:38 > 0:45:41The actual layout hasn't changed very much,

0:45:41 > 0:45:45because it was quite close to what I wanted. Which was nice.

0:45:45 > 0:45:48So the front reception area that had access to the bedroom above

0:45:48 > 0:45:51is now the kitchen with no stairwell,

0:45:51 > 0:45:56whilst in the studio, a new staircase leads to the bedroom.

0:45:56 > 0:45:59Well, this is one of the parts I'm most pleased with,

0:45:59 > 0:46:01the whole staircase and the gallery.

0:46:01 > 0:46:04It's turned out really well. It was my brother's idea

0:46:04 > 0:46:05to have a landing area up here,

0:46:05 > 0:46:08and I'm pleased that we made the effort to put it in,

0:46:08 > 0:46:09for a couple of reasons.

0:46:09 > 0:46:14Firstly, it gives a nice landing area outside my bedroom

0:46:14 > 0:46:15at the top of the stairs.

0:46:15 > 0:46:18Secondly, it's a place that conceivably clients could sit

0:46:18 > 0:46:22when they're waiting. It keeps them out of my way on the studio floor.

0:46:22 > 0:46:26It also gives me the opportunity of shooting from up here.

0:46:26 > 0:46:30So I've got an elevated position onto the studio floor, which comes in handy.

0:46:30 > 0:46:32Let's have a look at that bedroom now.

0:46:33 > 0:46:36# Girls on film

0:46:37 > 0:46:39# Girls on film. #

0:46:40 > 0:46:43OK, so not quite a cosy nook yet,

0:46:43 > 0:46:47but moving the stairs has freed up some valuable extra space for Michael.

0:46:47 > 0:46:49And he's managed to squeeze an en suite in here too.

0:46:49 > 0:46:54What else is there still to do, apart from moving in, of course?

0:46:54 > 0:46:57Mainly final things, so, it's cosmetic things.

0:46:57 > 0:47:03Final brush of paint, filling holes, finishing off the kitchen, bits and pieces like that.

0:47:03 > 0:47:05Nothing structural. The dirty work is done.

0:47:05 > 0:47:10And then, I think, several months of hoovering to get rid of all the dust!

0:47:10 > 0:47:11Which is everywhere.

0:47:11 > 0:47:14# Another one bites the dust. #

0:47:14 > 0:47:18Michael hoped to do the renovation for just £3,500.

0:47:18 > 0:47:19Has he managed that?

0:47:19 > 0:47:24Give or take a few pounds, £5,500 we spent.

0:47:24 > 0:47:28So very slightly over what I originally thought,

0:47:28 > 0:47:29but that doesn't surprise me at all,

0:47:29 > 0:47:32because it was a very ambitious budget.

0:47:32 > 0:47:34But the main thing is I've saved a lot of money.

0:47:34 > 0:47:37I've been working full-time, but also here whenever I can.

0:47:37 > 0:47:40My father, who's retired, has spent a lot of time here.

0:47:40 > 0:47:42I owe him a great deal of gratitude!

0:47:42 > 0:47:44That's still pretty good going.

0:47:44 > 0:47:48Add that £5,500 to his purchase price of £111,500,

0:47:48 > 0:47:53and you get a total outlay of £117,000.

0:47:53 > 0:47:54So what's it now worth?

0:47:57 > 0:48:00We asked two local estate agents to look around and give us their views.

0:48:05 > 0:48:07I'm quite impressed, actually.

0:48:07 > 0:48:10It's an interesting property, full of character, obviously.

0:48:10 > 0:48:13Plenty of natural light. It's a little bit limiting,

0:48:13 > 0:48:16perhaps, for the accommodation side of things.

0:48:16 > 0:48:20Great for a single person, but I think the workspace is pretty good.

0:48:20 > 0:48:23It's not finished, but what I like about it is the element of space.

0:48:23 > 0:48:25It's very light and airy.

0:48:25 > 0:48:28It's got a warehouse feel. It's a period property,

0:48:28 > 0:48:31so it's going to appeal to quite a few people. Good location as well.

0:48:31 > 0:48:35What could this property make if resold?

0:48:35 > 0:48:37Once complete, as a live-work one-bed unit,

0:48:37 > 0:48:41I think the value of the property would be in the region of £130,000.

0:48:41 > 0:48:44If I put this property on the market, I would expect a value

0:48:44 > 0:48:48somewhere in the region of £125,000 to £145,000.

0:48:48 > 0:48:51I'm obviously very pleased, because that's more than I paid for it,

0:48:51 > 0:48:54so immediately that's a step in the right direction.

0:48:54 > 0:48:56Obviously, as I'm intending to live here,

0:48:56 > 0:48:57I haven't given much thought

0:48:57 > 0:49:00to resale value or what it's going to earn me,

0:49:00 > 0:49:02but it's obviously always nice to know that you

0:49:02 > 0:49:05immediately gain something on a property.

0:49:05 > 0:49:10That's a potential profit of between £8,000 and £28,000,

0:49:10 > 0:49:12minus the usual taxes and expenses.

0:49:12 > 0:49:15So what about the rental value as a work-live unit?

0:49:17 > 0:49:19I think you would be looking to achieve

0:49:19 > 0:49:22somewhere in the region of £5,500 to £6,000 per annum

0:49:22 > 0:49:23as a one-bedroom property.

0:49:23 > 0:49:26I think it would rent for something in the region

0:49:26 > 0:49:30of £6,000 to £7,000 per annum. It's in a very good, central location.

0:49:30 > 0:49:33It's nice to hear that I can make some money if I needed to

0:49:33 > 0:49:35or if my situation changed. So again, very pleased.

0:49:35 > 0:49:39So a potential rental yield of between 4% and 6%. Not bad.

0:49:39 > 0:49:42The bigger and brighter picture is that this property

0:49:42 > 0:49:45still offers bags of potential to add more value

0:49:45 > 0:49:48if Michael's circumstances change in the future.

0:49:48 > 0:49:52It could be converted into a two-bed live-work unit

0:49:52 > 0:49:55or perhaps become purely residential.

0:49:55 > 0:49:58For now, it suits Michael down to the ground.

0:49:58 > 0:50:00I'm really looking forward to moving in.

0:50:00 > 0:50:04I've spent so much time here, I've become very familiar with the place,

0:50:04 > 0:50:07so I think the transition will be more or less painless. I hope!

0:50:07 > 0:50:12Just finishing off and very much looking forward to it.

0:50:15 > 0:50:18Back now to Boston in Lincolnshire to check on progress

0:50:18 > 0:50:20at this two-bedroom semi.

0:50:20 > 0:50:24Eye surgeon Mohammed bought it at auction for £52,000

0:50:24 > 0:50:27to add to his buy-to-let portfolio.

0:50:27 > 0:50:29The property had a very peculiar layout,

0:50:29 > 0:50:31but with his surveyor son, Tamim,

0:50:31 > 0:50:35and his builder, Ross, taking charge of the renovation,

0:50:35 > 0:50:38Mohammed had a clear vision of how to make things work.

0:50:38 > 0:50:42- I am intending to open a door in there...- Oh!

0:50:42 > 0:50:47..because there's an annexe at the back

0:50:47 > 0:50:49and put the toilet and a shower room.

0:50:49 > 0:50:53So, have a downstairs toilet and an upstairs toilet.

0:50:54 > 0:50:574.5 months after our first visit, Mohammed's back

0:50:57 > 0:50:59with his wife and business partner, Isla,

0:50:59 > 0:51:01to show us how they've got on.

0:51:02 > 0:51:03# Whoa, whoa, whoa

0:51:03 > 0:51:07# When your world is full of strange arrangements

0:51:07 > 0:51:12# There's one thing Yes, one thing that turns this

0:51:12 > 0:51:14# Grey sky to blue

0:51:14 > 0:51:17# That's the look, that's the look

0:51:17 > 0:51:19# The look of love

0:51:19 > 0:51:21# That's the look, that's the look

0:51:21 > 0:51:25# The look of love... #

0:51:25 > 0:51:29Well, the main change here is that we broke the wall,

0:51:29 > 0:51:33because there was a space for an outside toilet on the outside.

0:51:33 > 0:51:36Nowadays, that's not the done thing

0:51:36 > 0:51:39for going out in the middle of the night

0:51:39 > 0:51:41and using an outside toilet,

0:51:41 > 0:51:45so I thought the drainage, the structure is there,

0:51:45 > 0:51:50all I needed was just to make a hole in that wall,

0:51:50 > 0:51:55and I think that was the piece de resistance,

0:51:55 > 0:51:59because I thought, I've gained another facility

0:51:59 > 0:52:03and we have a toilet and a nice shower room with an electric shower.

0:52:03 > 0:52:04Reasonable.

0:52:06 > 0:52:07That's it.

0:52:09 > 0:52:11Well, that's not entirely it,

0:52:11 > 0:52:13because upstairs had a bit of a rejig, too.

0:52:13 > 0:52:17# The look of love

0:52:17 > 0:52:22# Is in your eyes... #

0:52:22 > 0:52:24The awkward corridor has gone

0:52:24 > 0:52:29and the funny little bedroom is now an ensuite master bedroom.

0:52:29 > 0:52:33The other bedroom remains as was, but made over.

0:52:33 > 0:52:35Isla explains the logic.

0:52:35 > 0:52:39Our long-term let aim was a small family,

0:52:39 > 0:52:42we didn't feel it would be too much of an issue for them to either

0:52:42 > 0:52:46share the big bathroom, or if they want to have a bit of independence,

0:52:46 > 0:52:49to use the bathroom from the downstairs.

0:52:49 > 0:52:51Hopefully it's the right decision.

0:52:51 > 0:52:54We'll wait to see what happens, but if it was me,

0:52:54 > 0:52:57I know that I'd rather have it this way than a corridor

0:52:57 > 0:52:58and a bedroom you can't use.

0:52:58 > 0:53:00I can see the thinking there.

0:53:00 > 0:53:03So how does this husband-and-wife team work,

0:53:03 > 0:53:05and what role does Isla play?

0:53:05 > 0:53:08It was the first time we'd ever bought at auction,

0:53:08 > 0:53:11but he does have a portfolio of properties

0:53:11 > 0:53:13which he has on a buy-to-let basis,

0:53:13 > 0:53:17so he will do all the buying, basically,

0:53:17 > 0:53:19and I'll deal with all the admin,

0:53:19 > 0:53:23so the maintenance issues for the tenants, the tenancy agreements...

0:53:25 > 0:53:27..the accounts, things like that. That's how we work.

0:53:27 > 0:53:30He's definitely the decision-maker,

0:53:30 > 0:53:33and I just pick up all the tabs and the paperwork at the end of it.

0:53:35 > 0:53:38Mohammed also owns one of the neighbouring properties,

0:53:38 > 0:53:40and he has made an opening in the wall

0:53:40 > 0:53:43and given the furnished property a bit more garden,

0:53:43 > 0:53:45which is a nice touch.

0:53:45 > 0:53:49So, in the grand scheme of things, how do they feel it's all gone?

0:53:49 > 0:53:52The refurb has... There's been good aspects

0:53:52 > 0:53:56and things I've been not entirely happy with, if I'm honest.

0:53:56 > 0:54:01This particular bathroom - great. Removing the wall - fantastic.

0:54:01 > 0:54:04Just the finish, the finish I'm not quite happy with,

0:54:04 > 0:54:08but as I say, I'm assured that will be met very soon.

0:54:08 > 0:54:11There's still that bit of damp in the sitting room to sort out,

0:54:11 > 0:54:14and one or two bits and bobs besides.

0:54:14 > 0:54:18But I'm sure Mohammed will make sure it's all shipshape in no time.

0:54:18 > 0:54:21At 4.5 months, the timescale has more than doubled,

0:54:21 > 0:54:25but what about that estimated £5,000 to £7,000 budget?

0:54:25 > 0:54:29Well, obviously, not according to plan!

0:54:29 > 0:54:35Because the conversion at the back cost more than what we thought,

0:54:35 > 0:54:40because the roof and the tiles and the joists.

0:54:40 > 0:54:43There were a lot of things needing to change,

0:54:43 > 0:54:47so we have spent £9,500.

0:54:49 > 0:54:52Added to his purchase price of 52,000,

0:54:52 > 0:54:56Mohammed's total outlay comes in at £61,500.

0:54:56 > 0:54:59We asked two estate agents to look around the property

0:54:59 > 0:55:02and give us their thoughts.

0:55:02 > 0:55:05I was very impressed with what had been done in the last few months.

0:55:05 > 0:55:10I think it's more attractive, it's going to have an attraction

0:55:10 > 0:55:13to first-time buyers, renters, all sorts of people,

0:55:13 > 0:55:17but it's all fresh and clean and seems more spacious.

0:55:17 > 0:55:21The living space in the property is very good, actually, yeah.

0:55:21 > 0:55:23Good-sized living rooms,

0:55:23 > 0:55:28particularly nice-sized dining room, so it's pretty good. Yeah.

0:55:29 > 0:55:32What do they think the place might fetch if sold on?

0:55:32 > 0:55:37Remember, Mohammed's total spend here is around £61,500.

0:55:37 > 0:55:39In my opinion, on the open market at the moment,

0:55:39 > 0:55:44the property's likely to achieve somewhere in the region of £75,000.

0:55:44 > 0:55:47I would expect it to achieve about £80,000.

0:55:47 > 0:55:51Pleasantly surprised, actually.

0:55:51 > 0:55:53- Wow! 80!- It's more than I thought.

0:55:54 > 0:55:57Well, it's auctions from now on!

0:55:59 > 0:56:03But Mohammed has always seen this property as a buy-to-let,

0:56:03 > 0:56:06so what might it fetch on the rental market?

0:56:07 > 0:56:10If the property was on the rental market at the moment,

0:56:10 > 0:56:13rental market is quite good, but for a property of this size,

0:56:13 > 0:56:15you'd be looking at anywhere between

0:56:15 > 0:56:20£425 to maybe £460 per calendar month.

0:56:20 > 0:56:24I would expect it to achieve £525 per calendar month.

0:56:24 > 0:56:26Yeah, that's fantastic news. That's very good.

0:56:28 > 0:56:32A rental of £525 per month could secure Mohammed a yield of

0:56:32 > 0:56:37over 10% before fees and expenses, which is really very good indeed.

0:56:37 > 0:56:41So is Mohammed happy to continue working with Isla?

0:56:41 > 0:56:43She's been good.

0:56:44 > 0:56:45I'll keep her!

0:56:49 > 0:56:51Well, we hope you enjoyed watching

0:56:51 > 0:56:54and perhaps learnt some lessons along the way.

0:56:54 > 0:56:57- And we look forward to seeing you next time. Goodbye.- Goodbye.

0:57:18 > 0:57:21Subtitles by Red Bee Media Ltd