Episode 66 Homes Under the Hammer


Episode 66

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Hello. Now, if you ever fancied buying a property at auction

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but haven't yet taken the plunge, maybe now is the time.

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There is so much variety in those auction catalogues.

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Thousands of lots are offered each month for sale,

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so why not get down to your local auction house and check out the action.

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People often ask us how to behave in an auction room.

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Well, there are no hard and fast rules, but here are a few tips.

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Always stand or sit where you can be seen by the auctioneer, and set yourself a price limit.

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If you want to bid, make sure you are clear, you're visible, and don't exceed you limit.

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So, here are the properties that people bid on in today's show.

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In Goudhurst, Kent, there's a chance to own a unique building.

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The auction catalogue calls it "a fabulous opportunity." I'm excited.

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In County Durham, I reveal my powers of deduction when it comes to tracing damp.

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That could have something to do with it.

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And in the small Cornish village of Antony, not even cats could have

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a swinging time in this cottage kitchen.

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HE LAUGHS

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All these properties are being sold at auction. We'll find out who bought them

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-and what they paid for them when they went under the hammer.

-Sold!

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Goudhurst in Kent is one of those classic English villages.

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There is a duck pond in the middle, and lots of character buildings.

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It's delightfully quaint.

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I'm here to see a detached property in this village. It had a guide price

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of just £180,000 to £200,000, and the auction catalogue calls it

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"a fabulous opportunity." I'm excited!

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And here it is - a former chapel. How impressive!

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The 19th century chapel was built on a lovely elevated site,

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so has some stunning views.

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The building has some really attractive architectural features,

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but as it's been lying vacant, I suppose it might take more than a little faith to get into shape.

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Wow! This is an incredible space.

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The acoustics... Ah! Ah!

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I love spaces like this. I know it's been vacant for eight years.

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It was built in 1878, and you can see this Methodist chapel is just incredible.

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Look at these windows!

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This would make an incredible home, it's absolutely beautiful in here.

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You can imagine raising the floor here, creating a mezzanine level

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so you've got two areas to live. What a brilliant family home!

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With a bit of imagination, this could be a stunning individual property.

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Amazingly, the chapel isn't listed, but I hope that some of the really beautiful features will remain.

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There is a separate, smaller building on the site of the main chapel

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that used to be the Sunday school. At one end, there is a raised area with a small kitchen,

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and just when I thought I couldn't praise this property any more,

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there's another revelation about this chapel.

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So, here's a really exciting bit of news.

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Somebody has already taken the trouble to apply for full planning permission

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to turn this into living quarters. And I've got the plans right here.

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Now, you can see on the ground floor you've got a lovely, big, spacious living room.

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There is a study. You've got a huge kitchen/dining area.

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A little downstairs office with a lobby,

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and it goes out onto a beautiful walled garden, which will be amazing in the summer.

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I mean, the grounds here are already spectacular.

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And then upstairs you've got four lovely bedrooms

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with an en suite bathroom and a dressing room,

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and another huge bathroom to the side, here.

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So you can see it's really, really spacious.

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It's got really nice doors leading out to the garden.

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Planning permission has been granted.

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Can you imagine what it would be like to live in this place?

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It's already got quite a special feeling here.

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The plans that have been passed will allow the demolition of the former Sunday school building.

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The land that that frees up will be turned into a walled garden for the new house.

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But in the main chapel, there are many signs of damp on the walls.

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So, whoever bought the chapel would definitely need to get the roof checked out for leaks.

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Apart from the all-important planning permission that comes with this property,

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it's also got a sizeable extra chunk of land to the side.

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So, the plans are great, but what if you wanted to tweak them or change them altogether?

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Maybe demolish this building and build two semi-detached houses?

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Well, looking into the planning history here, it could prove difficult.

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Now, in 2004, the idea of demolishing and creating two houses was refused.

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In 2005, somebody had the idea of creating four flats here.

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That was also rejected. So, looking at several rejections,

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I would say you may have to settle for the plan in place.

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To find out more about the prospects here, we invited a local

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estate agent to come and have a look at this chapel that comes with that

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crucial planning permission.

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I think the plans are very good, but they've obviously been prepared

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to get planning permission. I think a revisit, planning-wise,

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would be a very good idea.

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The room that currently I am standing in is the former Sunday school building,

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and I think there's a lot of potential here that could be used.

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Changing the plans could prove problematic, given its planning history.

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And what about the financial implications?

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How much could this former chapel generate in rental income after it's been converted?

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I would expect to get about £2,500 per month for it.

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And the potential resale value after a full conversion into a four-bedroomed house?

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If it was done along the lines of the present planning permission

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with a good developer, I would anticipate achieving somewhere between £650,000 to £680,000.

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This is an individual property for an individual buyer,

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and once the work has been carried out, well, it's going to make somebody an amazing home.

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I would love to live here. Let's find out who wanted this chapel as we go to auction.

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Now we go to lot 94, which is the former Methodist chapel.

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It's in a quarter of an acre with planning for

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a four-bedroom detached house.

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Excellent conversion project. Start me where you will on that one.

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180 can I say? 180? Where are you going to start me?

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£180,000 bid, I am on the way. 180 I have. And 5, do I see?

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185 do I see? 185, standing at the back.

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190. And 5. 195. And 2? At 200. And 5, and 10,

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and 15, and 20.

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And 5. 25, and 30.

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230. And 5. 235?

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235. And 40. 240, and 5.

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240 I have. And 5, may I say, at the back? Are you out of it at the back?

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We're all done at 240. 5 in a fresh place. 245. And 50.

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250. And 5. 255 at the back.

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255, and 60. And 5. 265.

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265 is against you at the back, sir.

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265 I have, 270. 270? Yep. 270, and 5.

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275. And 80. 280 and 5. 285.

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And 90. No? At 285,000, open neck shirt at the back.

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290 I am looking for.

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287 I will take, if it were just two more. You've been with it all this time.

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But I've got 285 at the back for the first time.

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285. 287. 290. One more go.

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290 I've got. And 2, no?

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At £290,000 I have, and I will sell for the first time.

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290 for the second time.

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Third and final time for 290,000, standing at the back,

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are we all done? 290. Well done, sir. And the number is...

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The victors in that epic auction battle were Nick and Sonia,

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who paid £290,000. They are both experienced developers in their own right,

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and this is their second project together. Nick is a quantity surveyor,

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and Sonia is an accountant by profession, and has also run her own building company.

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I met up with them back at the chapel to hear

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what they are praying for with this place.

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-Guys, congratulations.

-Thank you.

-This is brilliant news.

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I mean, I love it here. What are you two going to do with it?

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In a nutshell, we hope to turn it into a lovely family home.

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For you guys to live in?

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Yes, that is the likelihood at the moment, is that we're going to live here ourselves.

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So, Sonia, what is the story behind you finding this?

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Well, we moved to Goudhurst just over a year ago, and my daughter's school's local,

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so I drove past this building every day taking her to school,

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and noticed it was empty, and we approached the Methodists

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to see if we could buy it, but unfortunately at the time they said no,

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and it would have to be sold at auction.

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So, we sort of followed it from there.

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So we have been tracking it for some time.

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The couple are currently renovating another property in Rochester, Kent.

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They plan to complete the work there before starting work on this former chapel.

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Although planning permission has already been granted,

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they are looking to resubmit revised plans.

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Our view is that it's not the right design for this building.

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And why do you say that?

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Because it doesn't do justice to the space that is here.

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Basically, they are intending to put a floor all the way through here,

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and ruin the potential of having some double height space in it.

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It virtually demolishes all of the Sunday school room

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at the back which we don't think is also appropriate.

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We have an architect on board who is starting to draw up

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and hopefully interpret our vision for it, and put his own mark on it, too.

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And we believe we'll end up with a better product at the end of the day.

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So, how are you going to do that without cutting back on space?

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If you want to keep this as one and not use it as, you know, two floors,

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how are you going to do that in terms of space?

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There will be a part floor running through,

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but what we want to do is keep the dramatic two-storey space

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around the two sides where the tall windows are.

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The new plans sound fantastic, but they've got to get them passed,

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and that will take time and money.

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They've set a total budget of £200,000,

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including fees and other expenses.

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Added to the £290,000 they paid at auction, that takes the couple's projected total outlay

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to around nearly £500,000.

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And they're reckoning on about one year to get the work done.

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So, it's just one dwelling that you are looking at building?

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At the moment, the intention is just to build one, but we are looking at the possibility

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of a second property on the adjoining land which was part of the purchase.

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Guys, all I'm going to say is good luck with the planning,

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-and I hope it goes your way. Thank you.

-Thank you, thank you.

-Thank you very much.

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Nick and Sonia want to change the plans which came with their auction purchase,

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but given the planning history, this approach isn't without some degree of risk.

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You know, I hope for them it works out,

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but the big question here is will the sell on, will they rent out, or move in?

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You can find out what they do later on in the programme.

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Welcome to West Cornforth in County Durham. It's a former mining village,

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so the majority of properties built here were for the pit workers and their families.

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So, the property I'm here to see is a former coal miner's cottage.

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It's a terrace, two bedrooms. Around six years ago, this same property

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sold for around £56,000, but the guide price at auction was just under £20,000.

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That just goes to show what the current economic climate

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has done to property prices around here. That's just, like, a third of the price.

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From the front, it doesn't look too bad. There are fairly new double glazed windows,

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and it's set a little back from the road. Not a bad start

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for a guide price of £19,950.

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Expectations set relatively low, then.

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So, what have we got?

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Looks all right, first glance.

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Very standard layout, front door straight in front of the stairs to the bedrooms,

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through into the front sitting room.

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I reckon these floorboards could be quite nice stripped back,

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and double glazing on the front, which is good.

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It's definitely a nice little space.

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Through to your rear sitting room, as I said, very traditional layout.

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But again, nothing untoward as yet.

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I would have liked to have seen an open fire in there,

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and I'm concerned that's been blocked up and there is no air brick there

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to give a flow of air, so that might cause a few damp issues.

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Open that up, that'd be a really nice space.

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And something you might want to consider doing is knocking down this wall here

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or at least putting some kind of archway through,

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because then you'd create a really lovely living space.

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Sort of dining area there, and kitchen.

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Because this is the kitchen as it stands.

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It is small, and again, going back to this whole traditional thing,

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I would have expected to find a loo there,

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so, good news - it's obviously been moved upstairs.

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One issue in here, though, it does smell very damp,

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and there is definitely signs of water ingress up there.

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Hmm...

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That could have someone to do with it.

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Oh! It makes me so cross! Look, it would have cost, literally...

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You don't even have to buy some new guttering.

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They would have spent, I don't know, an hour, maybe, to put that in place.

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The amount of damage that has done,

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just for a simple lack of maintenance! Grrr!

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# Said, I'm angry Just looking at you... #

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And breathe.

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You may have gathered that I get a tad irritated at the neglect of perfectly sound property.

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The bottom line is that trying to save money by NOT doing repairs

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only leads to more repairs and more expenditure. It's just a false economy.

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Rant over.

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Anyway, let's see if my mood can be improved by the upstairs layout.

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There are two bedrooms, a decent sized master, and a single to the rear.

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Thankfully no sign of any water penetration here.

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And really, apart from redecoration and flooring,

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there is not as much to say or do for that matter.

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# I can't begin to tell you all the reasons why

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-# You're making me crazy

-Crazy... #

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The upstairs bathroom has been configured as a wet room,

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but for the average buyer a bath is still the business.

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And with a shower fitted above it, that would suit most families, too.

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We invited a local estate agent to give us his opinion on this

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property, which had a guide price of £19,950.

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The property is a good little house.

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Needs considerable updating, I would say.

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Predominantly there are some damp issues in the kitchen.

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Needs a new kitchen, new bathroom. I perceive that when the property is fully refurbished

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it would more appeal to the rental market rather than the sales market,

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just given local conditions at the moment.

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If this is to be a rental property, what sort of rental income could this place earn?

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I would anticipate on the rental market it would achieve

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somewhere in the region of £320, £325 per calendar month.

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What about renovating the property for sale?

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The guide price does seem very attractive,

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but there is significant work to be done. So, if you bought it,

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you'd have to make sure you did your homework.

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On the basis of the final sale price, there always needs to be

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a budget in mind when you are refurbishing properties.

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It's always key not to spend too much,

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as there is a ceiling price for the area.

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And what might that ceiling price be?

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I would anticipate a final sale price somewhere in the region of £50,000

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once the property is fully refurbished.

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Well, a bit of work required to get this place shipshape,

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but for that guide price, I think this is a great investment opportunity

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as a rental or a pleasant place to live.

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Let's find out who bought it when it went under the hammer.

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Down to West Cornforth, it's your two-bed, mid-terrace house.

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It's got the vacant possession, it does require some modernisation.

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It's got the double glazing. Do we have a bid at 20?

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19?

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19,000 bid on the second row. We are up and going at 19,000.

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Do I have 20,000 anywhere else?

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We're here at 19, right in the centre, at 20,000.

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21,000. 22,000.

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23,000. 24,000.

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Shaking your head. Are you sure?

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Second row, at £23,000. I've got your bid, sir, at 23,000.

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Are you coming back in at 24?

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No? I'm in at £23,000,

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I'll take 500 if it helps.

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No? I'm here, I'm selling, at £23,000.

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Selling once at 23,000, I'm selling for the second time at £23,000.

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The hammer fell on a successful bid of £23,000 from Ken, who's an electrician by trade.

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20 years ago he purchased, renovated and sold properties regularly,

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but this is his first development since then.

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I met Ken and his sister, Eileen, back at the terrace.

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Lovely to meet you both. Congratulations. Tell me why you wanted to buy this place.

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Well, it was investment, really. And I like the area. It's up-and-coming.

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-So, the auction, how was that?

-It was great. It was good fun.

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Yes, he rang me up before he went. He said, "I'm not

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"going to buy a house, I'm just going to have a look."

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I said, "All right then, that's great. Not yet."

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Then I rang her back and said, "I bought one."

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-And what did you say?

-"Oh, God!"

-THEY LAUGH

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Ken is an industrial electrician by trade,

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and while this house held no shocks for him,

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its purchase certainly did for his sister, Eileen.

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# Electric shock... #

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So, Eileen, tell me about your involvement in all this.

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-Well, I'm going to do the decorating.

-Right.

-No hard stuff.

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-Well, to some people, decorating is hard.

-I might be able to find you something.

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THEY LAUGH

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-Free labour.

-Free labour.

-You can use your artist talents.

-Oh, yes.

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What are you going to give her to say thanks?

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-A bottle of champagne, he said today.

-Did he?

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There will be a bonus.

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# Let's get together and do this Over a glass of champagne... #

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Well, it may be best to keep the champagne on ice for now.

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So, what tempted you into this?

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Well, it's something I used to do a lot of years ago,

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but then I lived in Hull and I had a partner then.

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-And we bought and sold quite a lot of houses.

-Right.

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-But I'm an electrician by trade.

-OK, that helps.

0:20:100:20:13

And work's a little bit in short supply at the moment, so you've got to diversify, do other things.

0:20:130:20:19

-So what kind of electrician are you?

-Mostly industrial.

-OK.

0:20:190:20:23

I haven't done a great deal of domestic. I know how to do it,

0:20:230:20:26

but I haven't done a great deal of it.

0:20:260:20:29

So you've got all the qualifications and everything you need to sort of do the wiring on the house?

0:20:290:20:33

Yes, I'm fully qualified to rewire the house and do a test and inspection.

0:20:330:20:39

But it'll also be a feather in my cap, because then I'll be able

0:20:390:20:43

-to join one of the regulating bodies and hopefully work should come from it.

-Right.

0:20:430:20:51

Ken has only recently become certified to do domestic electrics.

0:20:510:20:55

In order to join the regulatory body, his work has to be inspected,

0:20:550:20:59

and this property should prove the perfect test subject.

0:20:590:21:03

So, what's the plan? What are you going to do?

0:21:040:21:07

Well, basically make it watertight, because there is a few misplaced slates and guttering to replace.

0:21:070:21:14

-Going to make this dining room into a kitchen/dinette.

-OK.

0:21:140:21:18

So, I'm going to fit a new kitchen, and make that through there, the old kitchen,

0:21:180:21:23

-I'll make that a utility.

-OK, that'll be nice.

-What else were we going to do?

0:21:230:21:27

-Bathroom.

-Decorate top to bottom. Bathroom. Redo the bathroom.

0:21:270:21:31

-Bathroom.

-Tile the floors and basically modernise the house.

0:21:310:21:34

Just to bring it up-to-date, make it modern.

0:21:340:21:37

So, the plans, then, are once you've done it to do what?

0:21:370:21:40

Put it back on the market straight away.

0:21:400:21:42

What kind of amount of money are you hoping to make?

0:21:420:21:46

Well, the going rate seems to be about 56,000.

0:21:460:21:49

A property developer has to know the local sales market, and this one is a tricky one.

0:21:510:21:57

The estate agent thought the house could sell for £50,000.

0:21:570:22:01

Ken thinks 56,000. Remember, it sold for the same some six years ago.

0:22:010:22:06

I hope he's not overestimated the profit that can be made here,

0:22:060:22:10

and that he keeps a tight rein on the budget.

0:22:100:22:13

What is the budget?

0:22:130:22:15

Well, I'm thinking about 10,000, but it might be a bit more. Maybe less.

0:22:150:22:21

-So, what's the kind of timescale for the work?

-Two-and-a-half months.

0:22:210:22:25

-OK. Is that in between your normal work?

-No, I'll be here.

0:22:250:22:30

-That's it?

-Two-and-a-half months.

-And are you doing...?

-Most of it.

0:22:300:22:34

Well, good luck with all of that,

0:22:340:22:36

-and we look forward to seeing how you get on.

-Thanks very much, yeah.

-Thank you.

-Thanks a lot.

0:22:360:22:41

Well, it's unusual for someone to buy a house BECAUSE it needs the electrics done,

0:22:440:22:48

but in Ken's case it works perfectly. And with Eileen's help,

0:22:480:22:52

he should be able to sort this place out.

0:22:520:22:54

He's certainly going to improve its current condition.

0:22:540:22:57

Let's hope there's no shocks in store when we return.

0:22:570:23:00

You can find out how he gets on later in the show.

0:23:000:23:03

Coming up - in Cornwall I discover whether small really is beautiful.

0:23:040:23:08

It's a good working space. You don't have to reach very far to get the things you need.

0:23:080:23:12

Back in County Durham, will Ken ever clean up on his two-bedroom property?

0:23:140:23:18

Just horrendous, the amount of dust. In fact, I'm still having trouble now trying to get rid of the dust.

0:23:180:23:24

But first, it's back to the chapel in Kent to see if Nick and Sonia

0:23:260:23:30

have the fabulous home they'd hoped for.

0:23:300:23:33

In the pretty Kent village of Goudhurst,

0:23:390:23:41

earlier in the programme we saw this extraordinary development opportunity.

0:23:410:23:45

Built in 1878, the former Methodist chapel

0:23:450:23:48

was a wonderful building with high ceilings and long windows,

0:23:480:23:53

through which the light just flooded in.

0:23:530:23:55

Sitting on a decent sized plot,

0:23:550:23:58

not only did it come with a rather less elegant former Sunday school building attached,

0:23:580:24:03

but also with something much more valuable -

0:24:030:24:06

the all-important planning permission to convert it into a four-bedroom house.

0:24:060:24:12

For 290,000, it was snapped up at auction by local couple, Nick and Sonia,

0:24:120:24:17

to be their new family home.

0:24:170:24:20

Sonia's an accountant who has also run her own building firm,

0:24:220:24:27

while Nick is a quantity surveyor, so together they were well qualified

0:24:270:24:31

to take on such a large project, and also had their own plans for how to maximise the space.

0:24:310:24:37

-Our view is that it's not the right design for this building.

-And why do you say that?

0:24:370:24:43

Because it doesn't do justice to the space that is here.

0:24:430:24:47

Basically they are intending to put a floor all the way through here,

0:24:470:24:50

and ruin the potential of having some double height space in it.

0:24:500:24:54

We have an architect on board who is starting to draw up and hopefully

0:24:540:24:57

interpret our vision for it, and put his own mark on it, too.

0:24:570:25:02

And we believe we'll end up with a better product at the end of the day.

0:25:020:25:07

Not only were they hoping to change the plans for the chapel conversion,

0:25:070:25:11

they also hoped to get planning permission to build a detached house on the land adjacent to the chapel.

0:25:110:25:17

They had given themselves a budget of £200,000 for the chapel conversion alone,

0:25:170:25:22

and a realistic timescale of one year.

0:25:220:25:25

Now, 14 months later, we're back.

0:25:250:25:28

And it looks like they are well on their way to achieving something very special here.

0:25:340:25:40

# Oh, heaven, oh, heaven I wake with good intentions

0:25:440:25:52

# Then I'm gone, then I'm gone Then I'm gone, then I'm gone

0:25:520:25:58

# Then I'm gone, then I'm gone Then I'm gone, then I'm gone... #

0:25:580:26:06

Wow! What a transformation! The main chapel space has certainly gone,

0:26:080:26:14

and it's been turned into a fantastic living area.

0:26:140:26:17

Tried to develop a palette of colours as well as a particular

0:26:190:26:26

blend of materials, and so the slates were reclaimed and reused

0:26:260:26:30

and supplemented where necessary. The bricks from the original chapel were...

0:26:300:26:34

It was hand demolished and all salvaged and used in the reconstruction of the walls.

0:26:340:26:39

As we came to the house, we wanted to keep some nice light, open spaces

0:26:390:26:44

but keeping a palette of largely white, grey and black with some splashes of colour.

0:26:440:26:51

They've mixed traditional with modern, with a high-tech study area hidden behind the lounge.

0:26:540:27:00

Then there is a doorway that leads to the fantastic, oak-beamed glass extension.

0:27:010:27:06

So where the old Sunday school once stood, there is now

0:27:060:27:09

an amazing high-specification kitchen diner.

0:27:090:27:13

With everything anyone could want and more.

0:27:210:27:25

The kitchen - we wanted to use natural materials,

0:27:250:27:28

and we wanted to use oak to continue the oak frame outside,

0:27:280:27:32

and we also wanted to introduce the darker colours to mimic

0:27:320:27:36

the slate on the roof and the dark flooring,

0:27:360:27:40

but also white to lighten it up, really.

0:27:400:27:43

As if that wasn't enough, there's even a utility room and cloakroom.

0:27:430:27:48

Then there's the upper floor with that redesigned mezzanine level.

0:27:480:27:52

We've been in a number of church buildings that have been converted,

0:27:520:27:57

and one of the issues always is, particularly from the external elevations,

0:27:570:28:02

when you put a floor across at a high level,

0:28:020:28:05

it spoils the lines and chops the windows in half,

0:28:050:28:09

so we were aware that we didn't really want to do that.

0:28:090:28:12

We wanted to bring the floors back from the windows,

0:28:120:28:15

but there's always a compromise and a balance between having some

0:28:150:28:18

floor space upstairs to stand on and to use as bedrooms.

0:28:180:28:22

Hopefully what we've achieved is some quite dramatic space,

0:28:220:28:25

and the church from the outside largely looks as it was when it was first built.

0:28:250:28:30

And off this beautifully designed mezzanine floor there's a great family bathroom.

0:28:340:28:39

And three bedrooms.

0:28:410:28:42

Two reasonably sized ones, one of which is just a storeroom at present

0:28:470:28:51

and then there's an amazing, light, en suite master bedroom...

0:28:550:28:59

..complete with sliding doors that lead out onto a balcony.

0:29:020:29:09

Wow! This is just breathtaking, and if the chapel alone wasn't impressive enough,

0:29:090:29:15

they've also got planning permission to build on the plot beside the chapel.

0:29:150:29:20

What we're envisaging building is a three-storey house,

0:29:200:29:24

one level of which is subterranean,

0:29:240:29:28

bar the front elevation, which will be largely glass.

0:29:280:29:31

It's going to be an ICF construction, which is an insulated concrete formwork,

0:29:310:29:36

so basically you put a load of polystyrene Lego bricks together

0:29:360:29:40

with lots of steel in them, and you pour the concrete, and it will actually be...

0:29:400:29:45

Well, we're hoping it will be a passive house. It will not need any heating.

0:29:450:29:50

Nick and Sonia have five children between them.

0:29:500:29:53

The plan is for the new build and chapel to be home for their entire family.

0:29:530:29:58

They hope to construct the new build for 200,000. But how much has the chapel cost

0:29:580:30:04

to convert into this fantastic family home?

0:30:040:30:07

On the chapel we have spent about 350,000. It includes a little bit of

0:30:070:30:14

money relating to the site next door, enabling some drainage works

0:30:140:30:18

and the construction of a shed at the back which we needed to do

0:30:180:30:23

prior to excavating the main dig.

0:30:230:30:26

350,000 on top of their £290,000 purchase price for the chapel

0:30:260:30:33

and the building plot takes their total outlay to 640,000, without costs and fees.

0:30:330:30:39

So, in addition to creating a fabulous new home,

0:30:390:30:43

have they made a wise investment?

0:30:430:30:46

What do two local estate agents think?

0:30:460:30:48

Unbelievable, I think, is the best way of describing it.

0:30:500:30:53

It is a fabulous building.

0:30:530:30:54

When I left here two years ago, and was looking at it then,

0:30:540:30:57

I had to say to myself, "I'm really not sure they're going to be

0:30:570:31:01

"able to manage this." And it's been an outstanding example of what

0:31:010:31:06

someone can do with something like this with a broad, open-plan sheet of paper.

0:31:060:31:10

Oh, it's outstanding, isn't it? The position of the property,

0:31:100:31:16

the character, the improvements.

0:31:160:31:18

In fact, it's probably one of the best conversions

0:31:180:31:21

I've ever seen. The workmanship is first class.

0:31:210:31:24

Yes, I definitely agree with him. I think it's one of the best

0:31:240:31:28

conversions I've ever seen, too.

0:31:280:31:31

But it cost them £640,000 to do, so was it worth it?

0:31:310:31:36

With regard to the price of the property, I think it is going to be

0:31:360:31:38

somewhere between £650,000 and £700,000, and then with regard to

0:31:380:31:43

the property next door, once it's built,

0:31:430:31:46

it's going to be somewhere between £450,000 and £500,000.

0:31:460:31:50

I'd probably put a value on it of 690,000.

0:31:500:31:53

With regards to the building plot, probably about £490,000.

0:31:530:31:58

They were pretty much as expected, but yeah, they are pleasing values.

0:31:580:32:04

Even with the £200,000 cost for the new build, the combined development

0:32:040:32:09

could see a pre-tax profit of between 260,000 and 360,000,

0:32:090:32:15

making the whole renovation very worthwhile.

0:32:150:32:18

So, will they take on any more big property projects?

0:32:180:32:23

-We're just about to.

-Snap!

-To the extent, obviously, we have the other

0:32:230:32:28

property to do next door. But I think we've both said that

0:32:280:32:33

maybe one more sometime in the future,

0:32:330:32:37

and not necessarily in this country.

0:32:370:32:39

But before they do that, I think they need to live in this

0:32:430:32:48

fantastic house and really enjoy making it a home.

0:32:480:32:51

Today I'm in Cornwall, and this is the Rame Peninsula.

0:33:000:33:05

It's known as the forgotten corner of Cornwall,

0:33:050:33:08

but once seen, who could ever forget this simply stunning coastline?

0:33:080:33:12

The auction lot I'm visiting is in the little village of Antony,

0:33:140:33:18

and with a local shop, school, pub and village hall,

0:33:180:33:22

what more could you ask for?

0:33:220:33:25

# Little Anthony... #

0:33:250:33:28

Well, just a few miles from that beautiful scenery in the small

0:33:310:33:35

and friendly village of Antony - I feel bit of a theme coming on here -

0:33:350:33:39

is the property I'm going to see. And it, too, is described as, well, fairly petite.

0:33:390:33:45

And so was the guide price. £45,000 for a one-bedroom cottage.

0:33:450:33:49

This is it. Let's have a look inside.

0:33:490:33:51

Small it may be, but let's hope it's perfectly formed.

0:33:540:33:58

# My little lovely... #

0:33:580:34:01

So, what's on offer for your money?

0:34:010:34:05

Well, not a particularly large amount,

0:34:050:34:08

but what there is looks to be in fairly decent condition.

0:34:080:34:12

From the front door straight into this room, which is basically,

0:34:120:34:17

apart from the thing I'm about to go into, your one room downstairs.

0:34:170:34:20

You've got an open fire, which makes it really kind of cosy,

0:34:200:34:23

but it's got character, that's for sure.

0:34:230:34:26

Moving towards the rear of the property,

0:34:260:34:28

-as I said, the only other room down here is the kitchen. Well...

-HE LAUGHS

0:34:280:34:35

It's a good working space, you don't have to reach very far to get the things you need.

0:34:350:34:40

It's cute, though, isn't it? I mean, it's cute.

0:34:400:34:43

# Cutie pie... #

0:34:430:34:46

Good luck squeezing a washing machine or dishwasher in here.

0:34:480:34:52

But perhaps the solution would be to do a small extension into the private garden at the rear.

0:34:520:34:58

There's obviously no garden at the front of the cottage,

0:35:000:35:02

you're straight onto the road, but at the back there is at least

0:35:020:35:05

this small little courtyard area.

0:35:050:35:07

The other issue out here is this retaining wall.

0:35:070:35:09

You've got a big bank of soil here, and you just hope that

0:35:090:35:15

that retaining wall has been put in properly, because if not,

0:35:150:35:18

that could give you all sorts of problems, and to correct that and put another wall

0:35:180:35:22

in its place is going to cost you a lot of money. Innocuous though it may look, it could be a problem.

0:35:220:35:26

Well worth getting checked out by a structural engineer.

0:35:280:35:31

But in the summer, this garden could be really lovely.

0:35:310:35:34

Let's take a little look upstairs.

0:35:340:35:36

Thankfully, there is a classic, white bathroom suite.

0:35:420:35:45

I'm not so sure about the brown colour scheme throughout, though.

0:35:450:35:49

In such a small space, you really need as much light as possible.

0:35:490:35:53

Across the hall is the bedroom.

0:35:530:35:55

There is no sign of central heating, so installing that

0:35:550:35:58

should be factored in to the new owner's renovation budget.

0:35:580:36:02

But all in all, this is a lovely little cottage.

0:36:020:36:04

We invited a local estate agent to give us his opinion on this property

0:36:130:36:17

which had a guide price of £45,000 plus.

0:36:170:36:20

My first impressions of the property, it's got two good-sized rooms,

0:36:210:36:25

bedroom and lounge, and to have a bathroom in a property of this size

0:36:250:36:29

on the first floor is definitely a bonus.

0:36:290:36:31

Due to the size of the property,

0:36:310:36:33

it's a relatively small amount of money needs spending on it,

0:36:330:36:36

really just to bring it up to that next level.

0:36:360:36:38

New kitchen, new bathroom, general decor,

0:36:380:36:41

and maybe some sort of heating would really add extra value to the property.

0:36:410:36:45

So, if those works were carried out, how much could this property be worth?

0:36:460:36:52

When renovated, we'd be looking to market this property at between £75,000 and £80,000.

0:36:520:36:59

And the rental?

0:36:590:37:01

If we were looking to do a short-term tenancy on this property,

0:37:010:37:05

we'd be looking to mark it up in the region of about £500 per calendar month.

0:37:050:37:10

I think this place has the potential to be a lovely, little retreat for holidaymakers in Cornwall.

0:37:120:37:18

So, how much could it achieve as a holiday let?

0:37:180:37:22

For holiday lets, we'd be looking for about £500 per week in the summer months.

0:37:230:37:29

Well, it's a lovely location, that's for sure. And the cottage itself

0:37:320:37:37

may be small, but it certainly packs a financial punch. Oh, yeah.

0:37:370:37:42

With great possible rental returns either as a short-term or as a holiday let.

0:37:420:37:47

Let's see who fancied it when it went under the hammer.

0:37:470:37:50

So, lot 229 is a two-storey, one bed mid-terrace cottage for modest

0:37:510:37:55

improvement. Located in the well thought of village of Antony.

0:37:550:37:59

It's freehold. So, who'd like to start me off at 45,000?

0:37:590:38:02

Someone to start at 45,000.

0:38:020:38:04

£45,000 standing here on the right.

0:38:040:38:06

That's good place to start. At 45, I'll go in ones if I can.

0:38:060:38:10

I have 45, looking for 46 now.

0:38:100:38:13

45,000. 46 now.

0:38:130:38:14

46. 47. 47.

0:38:140:38:17

48. 47,000 here,

0:38:170:38:20

48 now.

0:38:200:38:22

48,000. 49.

0:38:230:38:26

At 48,000, 49. It's against you. £49,000.

0:38:260:38:31

50, now, if I can, or a half will do.

0:38:310:38:34

£50,000, seated here. £50,000, it's now against both of you at £50,000.

0:38:350:38:40

51. Sure? You are both done? The rest of the room done?

0:38:400:38:43

At £50,000. £50,000 it is here, seated, then.

0:38:430:38:49

First time of calling, £50,000 here. Second time.

0:38:490:38:53

Third and last time of calling,

0:38:530:38:55

seated here at £50,000, if there is no further advance. GAVEL FALLS

0:38:550:39:00

The cool customers with their successful bid of £50,000

0:39:000:39:04

are husband and wife, Nigel and Elizabeth.

0:39:040:39:07

They farm cattle 20 miles from the village of Antony.

0:39:100:39:15

While they have bought properties at auction, renovated and sold them on before,

0:39:150:39:18

this is their first investment purchase in many years.

0:39:180:39:21

-Nigel, Liz.

-Hello.

-Hello.

-Lovely to meet you both. Congratulations.

0:39:240:39:28

-Thank you.

-Tell me why you wanted to buy this little cottage.

0:39:280:39:33

An investment, really. We are actually farmers, and farming's a hard way of life,

0:39:330:39:37

so we thought we'd put some money into this for future retirement funds.

0:39:370:39:43

Great, and is this the first project of its kind you've taken on?

0:39:430:39:47

The first one that we are hopefully going to rent out.

0:39:470:39:49

We've done a couple of building ones and sold on before.

0:39:490:39:51

And what was it about this one, Liz, that you thought, "Yeah, this is the one to go for"?

0:39:510:39:56

-It doesn't need an awful lot of work doing to it, and we thought it was quite reasonable.

-Yeah?

0:39:560:40:01

-And the area? It's in a lovely spot, isn't it?

-Yeah, nice, little area,

0:40:010:40:04

near a couple of National Trust places, quite close to Plymouth on the ferry.

0:40:040:40:08

So we thought it might be good for renting.

0:40:080:40:10

So, what did you think about it when you came to see it?

0:40:100:40:12

We actually came to view the next-door property, because that's in quite a bad state.

0:40:120:40:17

-Bit more of a challenge.

-Bit more of a challenge.

0:40:170:40:19

-Was that for sale as well?

-That was for sale at the same auction.

-Right.

0:40:190:40:23

Then we saw this one, and we thought this is more

0:40:230:40:26

-of a bargain than that one almost was.

-Right!

0:40:260:40:29

So we ended up buying this one.

0:40:290:40:31

It remains to be seen whether changing their mind at the last minute

0:40:310:40:35

will be an astute move. Let's hope so.

0:40:350:40:37

So, what are you doing to do to the place to sort it out?

0:40:370:40:40

It doesn't need an awful lot doing to it.

0:40:400:40:43

We need a new kitchen, decorate it throughout. New carpets.

0:40:430:40:46

-Some sort of heating system. Yeah, just general tidying up, really.

-Tidy the garden.

0:40:460:40:50

-Tidy the garden up.

-Yeah.

-That's about it.

0:40:500:40:53

You talked about the garden, one thing that did concern me a bit is

0:40:530:40:56

you have a massive retaining wall here, haven't you?

0:40:560:40:59

Have you looked into how that is and the condition of that and its effectiveness?

0:40:590:41:04

We did briefly look through the bushes at it. It all looks in fairly good order,

0:41:040:41:09

so until we clear the garden we won't really know 100%,

0:41:090:41:14

but I'm hoping it will be OK.

0:41:140:41:16

And if this works well, back to the auctions?

0:41:160:41:18

-Definitely.

-Definitely, yeah.

0:41:180:41:20

We're used to auctions, obviously, because in farming we deal a lot

0:41:200:41:24

with auctions anyway, so it's just a little bit more money when you buy a house rather than a cow.

0:41:240:41:28

-Although, some cows, I understand, can go for...

-You could buy a bull

0:41:280:41:31

-for the same price as this house, yeah.

-THEY LAUGH

0:41:310:41:35

Oh, yes, it's true - a pedigree bull could cost more than the £50,000

0:41:350:41:39

Nigel and Elizabeth paid for this property, and that's no cock and bull story.

0:41:390:41:44

The couple certainly seem prepared to grab the bull by the horns

0:41:440:41:48

when it comes to renovating this cottage.

0:41:480:41:51

So what kind of budget have you put aside for the work?

0:41:510:41:53

About 5,000, which should hopefully cover it, really. Want to do a fairly nice job.

0:41:530:41:59

-And who's doing the work?

-We'll do most of the work. I'll probably get

0:41:590:42:02

someone in to sort the electrics and maybe for the kitchen.

0:42:020:42:05

But we'll do a lot of the work ourselves. Being farmers...

0:42:050:42:08

Working that roller.

0:42:080:42:10

Being farmers we've got harvesting and things to do, so can't be here all the time.

0:42:100:42:14

And what's the timescale for sorting it all out?

0:42:140:42:17

Hopefully about two to three months depending on other workloads

0:42:170:42:22

and what we find when we go through the house.

0:42:220:42:24

-Well, congratulations.

-Thank you very much.

-Good luck with it,

0:42:240:42:27

-and we look forward to seeing how you get on.

-Thank you.

-Thank you very much.

0:42:270:42:31

Elizabeth and Nigel are diversifying from farming into property,

0:42:310:42:36

spending their money on property rather than a prize bull.

0:42:360:42:40

-So, can this small house become a cash cow?

-HE CHUCKLES

0:42:400:42:44

You can find out later in the show.

0:42:440:42:45

Work always takes a lot longer when you are doing up properties,

0:42:500:42:53

so you must factor that in when you are doing the work.

0:42:530:42:56

-So, have our buyers hit their timescales and budgets?

-Let's find out.

0:42:560:43:01

We are back in Cornforth in County Durham to see how

0:43:050:43:09

industrial electrician Ken got on with that mid-terrace.

0:43:090:43:12

He picked it up for a remarkable £23,000 -

0:43:120:43:16

less than the cost of many new cars.

0:43:160:43:18

Downstairs there was a damp and smelly tiny kitchen,

0:43:180:43:21

and I saw red when I noticed the cause was simply not repairing a gutter.

0:43:210:43:26

Oh! It makes me so cross!

0:43:260:43:28

Look! The amount of damage that that's done,

0:43:280:43:31

just for a simple lack of maintenance. Grrr!

0:43:310:43:36

But annoying as that was, luckily the water damage didn't

0:43:370:43:41

extend to the two bedrooms upstairs, and I did appreciate

0:43:410:43:44

the new double glazing and layout of this two-bedroom house.

0:43:440:43:48

The good news being that the bathroom was upstairs,

0:43:480:43:50

but it really needed to be turned back into a traditional bathroom.

0:43:500:43:55

Ken bought the place for 23,000 and saw this as his way back into

0:43:550:44:00

property developing after taking a break for just over 20 years.

0:44:000:44:04

His sister Eileen was around to help with the finishing touches.

0:44:040:44:07

-Free labour.

-You can use your artist talents.

0:44:070:44:11

-Oh, yes.

-What are you going to give her to say thanks?

0:44:110:44:15

A bottle of champagne, he said today.

0:44:150:44:18

Ken planned to spend around £10,000 and ten weeks renovating the house.

0:44:190:44:24

He was going to do most of the work himself,

0:44:240:44:26

pulling in help from family and friends.

0:44:260:44:28

Well, we've returned 12 weeks later to find out if it's

0:44:300:44:34

fizz and family fun, or a frazzled family relationship.

0:44:340:44:38

With a fresh lick of paint round the windows and a tidy front garden,

0:44:400:44:43

someone has been making this house look whole lot better.

0:44:430:44:47

Inside, the unloved front sitting room has been re-plastered,

0:44:470:44:51

re-papered and all in all re-loved.

0:44:510:44:55

But that dingy dining room is where the biggest change of all has taken place.

0:44:550:44:59

# Ah, ah, ah, ah

0:44:590:45:02

-# Ain't nobody

-Nobody

0:45:020:45:05

-# Loves me better

-Loves me better

0:45:050:45:07

# Makes me happy Makes me feel this way

0:45:070:45:12

-# Ain't nobody

-Ain't nobody

0:45:120:45:14

# Loves me better... #

0:45:140:45:17

This was the back sitting room in the house,

0:45:170:45:23

so I've turned this into a kitchen/dinette.

0:45:230:45:27

This was the major job.

0:45:270:45:29

It's been a big achievement.

0:45:290:45:31

By relocating the kitchen from the tiny area at the back,

0:45:320:45:36

Ken has made use of the space for a brand-new utility room,

0:45:360:45:40

and he's even found space for a downstairs loo - a very good idea.

0:45:400:45:44

This was originally the old kitchen. There was a lot of work to do in here.

0:45:450:45:51

The roof was leaking, there was water coming in.

0:45:510:45:55

We had to repair all the guttering, we had to have the extension re-roofed.

0:45:550:46:00

So, no problems with dampness downstairs, then(!)

0:46:000:46:03

But what about that electrical work that Ken was keen to get stuck into?

0:46:030:46:07

Well, the re-wire was pretty straightforward,

0:46:070:46:10

and it's not difficult when you've got an empty house.

0:46:100:46:13

This rewiring has taken Ken one step closer to his move from being

0:46:130:46:17

an industrial electrician to a domestic one.

0:46:170:46:21

But this old house still had a few shocks in store for him.

0:46:210:46:25

The major work was stripping the walls.

0:46:250:46:28

And the dust and the dirt was just amazing.

0:46:280:46:31

All these houses were built with black plaster.

0:46:310:46:36

You try and do anything with the walls, it's black.

0:46:360:46:41

It was just horrendous, the amount of dust.

0:46:410:46:43

In fact, I'm still having trouble now try to get rid of the dust.

0:46:430:46:47

But the house itself, although it was in a bad condition inside,

0:46:470:46:53

it's a well-built house.

0:46:530:46:55

Upstairs, Ken has taken the duo of dowdy bedrooms

0:46:570:47:01

and given them the same fresh, neutral makeover.

0:47:010:47:04

But not everything is finished.

0:47:040:47:06

-# I got work to do

-Work to do

0:47:060:47:08

# Got so much work, yeah... #

0:47:080:47:10

The bathroom still needs tiling and final declaration, but Ken knows

0:47:110:47:16

he'd be a lot further behind without the help of family and friends.

0:47:160:47:20

My brother-in-law, Barry, he's a fitter by trade.

0:47:200:47:23

And my sister, she was the one who decided on the decor,

0:47:230:47:28

what colours things should be done, and they've been a great help.

0:47:280:47:33

A great help to me. I wouldn't have got it done without them.

0:47:330:47:38

And Ken hasn't exactly been sitting around, either.

0:47:380:47:41

Initially he thought it would only take ten weeks to renovate this house.

0:47:410:47:45

It's taken about five months to do the house.

0:47:450:47:48

I was here just about every day.

0:47:480:47:51

Sometimes Saturdays, sometimes Sundays as well.

0:47:510:47:54

Ken went well over his timescale, but what about his budget?

0:47:540:47:57

He bought the house for £23,000 and planned to spend £10,000 renovating it.

0:47:570:48:03

The refurbishment cost 16,000,

0:48:030:48:05

bringing his total investment here to £39,000.

0:48:050:48:08

So, was it money well spent?

0:48:080:48:10

We invited two local estate agents to give us their opinions.

0:48:130:48:17

I think the owner has done a fantastic job in refurbishing

0:48:200:48:22

what was a fairly tired property beforehand.

0:48:220:48:24

Bringing the kitchen back into the dining room,

0:48:240:48:26

or what was the dining room,

0:48:260:48:28

now means you've got a much more family-orientated space,

0:48:280:48:31

and there's space to put a table in

0:48:310:48:33

to be able to eat around in the kitchen.

0:48:330:48:35

I do like the use of the space at the back that used to be the kitchen.

0:48:350:48:38

That's now an extra utility room. I do like the kitchen.

0:48:380:48:40

It's nice to see a very good standard of kitchen.

0:48:400:48:43

And what might this property earn if let?

0:48:430:48:47

It would probably achieve rental market around £300 to £350 per calendar month.

0:48:470:48:54

On the rental market at the moment I would anticipate

0:48:540:48:56

a price in the region of £375 per calendar month.

0:48:560:49:01

Those rental figures would mean a yield of between 9.5% and 11.5%.

0:49:010:49:07

That's very good for the area, yes. I think that's reasonable.

0:49:070:49:11

What do the estate agents reckon the property is worth now?

0:49:130:49:17

I would probably think that it would fetch around £40,000 in the current market.

0:49:170:49:23

In the current market conditions, there is some rather strange pricing out in the local area.

0:49:230:49:27

However, I would anticipate a sale price just over the £50,000 mark.

0:49:270:49:32

Those widely varying prices would give a profit of between £1,000 and £11,000,

0:49:340:49:39

minus taxes and expenses, of course.

0:49:390:49:42

If I could get 50,000, I would be happy with that.

0:49:420:49:46

Hopefully I'll put it back on the market. This is a new thing for me.

0:49:460:49:50

I hope to sell it on, and then I can go back to the auctions and get another one.

0:49:500:49:54

HE LAUGHS

0:49:540:49:56

Ken certainly sounds keen to get back to another auction.

0:49:560:49:59

What has he learned from this renovation?

0:49:590:50:02

You need a good team to be able to get things done.

0:50:020:50:06

That's... Teamwork is paramount.

0:50:070:50:10

Six miles from Plymouth, and on the beautiful Rame Peninsula is the small village of Antony.

0:50:160:50:21

It was here that we came across what might best be described as a compact property.

0:50:230:50:29

Yes, this mid-terrace cottage wasn't the biggest in the world,

0:50:330:50:36

with just one bedroom, albeit quite a reasonable sized double bedroom.

0:50:360:50:41

But it wasn't in too bad a state,

0:50:430:50:45

and really just needed a bit of renovation work.

0:50:450:50:48

It was bought for £50,000 by Nigel and Elizabeth.

0:50:480:50:52

Tell me why you wanted to buy this little cottage?

0:50:540:50:57

An investment, really.

0:50:570:50:59

We are actually farmers, and farming is a hard way of life,

0:50:590:51:03

so we thought we'd put some money into this for future retirement funds.

0:51:030:51:08

The couple have a beef cattle farm 20 minutes away in Liskeard.

0:51:100:51:14

With a budget of £5,000, they had hoped to complete the refurbishment

0:51:150:51:20

in two to three months, doing it in between their farming commitments.

0:51:200:51:23

Now, 12 weeks later, we return to see if small really is beautiful.

0:51:260:51:30

# It's a tiny world out there

0:51:320:51:37

# It's a tiny world It's a tiny world

0:51:370:51:42

# It's a tiny world Running all over... #

0:51:420:51:48

With the dividing wall between kitchen and lounge removed,

0:51:520:51:55

there is now a much improved kitchen/diner, and upstairs...

0:51:550:51:59

Well, the one bedroom is now modern and bright.

0:52:010:52:04

They've fitted electric heaters throughout. And what about the bathroom?

0:52:040:52:08

In here, a new toilet, tiling, flooring

0:52:100:52:13

and redecoration has certainly done the trick.

0:52:130:52:16

Then there was that rather overgrown garden.

0:52:190:52:22

Yes, when we came here it was quite a jungle out here, so we managed

0:52:240:52:27

to clear all the brambles and weeds, reveal the back wall.

0:52:270:52:31

That seemed in a good state, so that was a relief.

0:52:310:52:34

It was quite wet out here also, so we dug down and put in some drains,

0:52:340:52:38

put some gravel on top.

0:52:380:52:40

Made a little raised border, a few plants, herbs etc.

0:52:400:52:44

Our neighbour and us put up the fence so we can make a nice, secluded garden,

0:52:440:52:51

and we've just started painting the outside of the house, so, yes.

0:52:510:52:55

Quite an improvement, I think.

0:52:550:52:57

This IS a pretty impressive transformation.

0:52:570:53:00

With the wilderness tamed,

0:53:000:53:02

they've turned it into a much more manageable and practical space.

0:53:020:53:06

But undoubtedly the most impressive change is in the kitchen.

0:53:060:53:10

Right, well, in the kitchen there was a partition wall that

0:53:100:53:13

came across about here, which we removed

0:53:130:53:15

because it was impossible to get anything in the kitchen.

0:53:150:53:18

Put in new appliances. Put in the fridge at this angle

0:53:180:53:22

because it was the only way that we could get it in.

0:53:220:53:24

And new flooring. And that was about it in the kitchen.

0:53:240:53:28

I really think they've made the most of the space they had.

0:53:280:53:31

It's amazing what a change in the decor will do for a place.

0:53:310:53:35

But how has it been trying to fit the work in around running a farm?

0:53:350:53:39

We've managed to do it in between harvest.

0:53:400:53:43

If I've been busy on the farm, then Elizabeth has come down on her own, so it's worked quite well.

0:53:430:53:48

I've done quite a bit of painting, which is obviously fairly

0:53:480:53:51

straightforward and not too high, so can't fall off a ladder, can I?

0:53:510:53:54

Other than the kitchen, the carpets and obviously an electrician

0:53:540:53:57

to check all the electrics, we've basically done it all, haven't we?

0:53:570:54:00

I think they've managed the balancing act pretty well,

0:54:000:54:03

and they just have a few small jobs to do before it's ready for the rental market.

0:54:030:54:08

But what I really want to know is did they keep to that £5,000 budget?

0:54:080:54:13

# I want to know now, now... #

0:54:130:54:16

I don't think we're too far off.

0:54:170:54:19

We've got one or two more bits and pieces to come in, but yeah, we're around about 5,000.

0:54:190:54:23

We were hoping to come in under. Yeah, I don't think we're five.

0:54:230:54:27

So, a £5,000 spend on top of a £50,000 purchase price

0:54:270:54:32

takes Nigel and Elizabeth's total outlay to £55,000 without costs and fees.

0:54:320:54:38

Have they harvested the maximum potential from this tiny terrace?

0:54:380:54:42

What do two local estate agents think?

0:54:420:54:46

I think it's been finished off to a good standard.

0:54:460:54:49

It offers cosy accommodation, ideal for one or two people.

0:54:490:54:53

Beautiful garden to the rear which is a sun trap.

0:54:530:54:56

Ideal for your patio table and chairs, and barbecue when the weather is good.

0:54:560:55:00

Yeah, I really like it.

0:55:000:55:01

The property has had a fantastic transformation.

0:55:010:55:04

It's not a huge property,

0:55:040:55:05

so the money that they have spent on it has really made a big difference.

0:55:050:55:09

Nigel and Elizabeth have invested £55,000 into this one-bedroom house,

0:55:090:55:14

so have they successfully managed to grow their investment?

0:55:140:55:19

In the present market we'd be looking at marketing this property at between £75,000 and £80,000.

0:55:190:55:23

In the current marketplace,

0:55:230:55:25

I would suggest this property is worth in the region of £80,000.

0:55:250:55:28

Yeah, it's about where we thought.

0:55:280:55:30

Pretty much what we thought, yes, really.

0:55:300:55:32

That's a potential pre-tax profit of between £20,000 and £25,000,

0:55:320:55:36

but it was the rental market where Nigel and Elizabeth were predominantly aiming the house.

0:55:360:55:42

In the rental market, we would look at marketing

0:55:420:55:46

the property at about £450 to £500 per calendar month.

0:55:460:55:50

On a rental basis, on an assured short-hold tenancy, I would suggest

0:55:500:55:54

the yield would be in the region of £475 per calendar month.

0:55:540:55:58

We've got somebody in mind that would like to rent it between those figures,

0:55:580:56:03

so I think that's the way we might go.

0:56:030:56:06

Rental values in the region of £450 to £500 per calendar month

0:56:060:56:10

would see an annual rental yield above 9%, which is pretty healthy.

0:56:100:56:14

Although they hope to get a long-term tenant,

0:56:150:56:18

the estate agents also reckon they could get

0:56:180:56:21

up to £600 a week in the high season as a holiday let.

0:56:210:56:25

So, it seems that whichever way they go with this small house,

0:56:250:56:29

they could reap big rewards.

0:56:290:56:31

How do they reflect on this investment project?

0:56:310:56:34

I've really enjoyed it.

0:56:350:56:37

Yeah, it's been the smallest one we've ever done,

0:56:370:56:41

so, yes, it was quite a relief to get it done rather quick.

0:56:410:56:44

Well, that's what happened to the buyers on today's show,

0:56:460:56:49

but anything can and does happen on planet property.

0:56:490:56:54

Make sure you join us next time for more Homes Under The Hammer.

0:56:540:56:57

-We will see you then.

-Goodbye.

-Goodbye.

0:56:570:56:59

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0:57:020:57:05

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