0:00:00 > 0:00:01Hello. Welcome to Homes Under the Hammer.
0:00:01 > 0:00:05For many, buying at auction gives the chance to buy properties
0:00:05 > 0:00:07that are in need of some work.
0:00:07 > 0:00:11Yes, people like to put their own personality and stamp and style on their properties.
0:00:11 > 0:00:14And you can get that when you buy your home under the hammer.
0:00:39 > 0:00:42We love the buzz and excitement of the auction room.
0:00:42 > 0:00:45You can sense the frustration and hope in the air.
0:00:45 > 0:00:49You never know how it's going to go until the very last second.
0:00:49 > 0:00:51So what inspired the buyers on today's show?
0:00:52 > 0:00:57In Leeds, I visit one of the grandest places we've ever featured.
0:00:57 > 0:01:01Boy, oh boy, have I got something spectacular to show you!
0:01:02 > 0:01:07In Croydon, Surrey, a house that doesn't have a lift, but certainly lifts my spirits.
0:01:07 > 0:01:11Up on the first floor, still as gorgeous as ever, I'm still loving it!
0:01:12 > 0:01:15And a pretty village with lovely views.
0:01:15 > 0:01:17But it's not all good news at this Cornish cottage.
0:01:19 > 0:01:22A slight disappointment - this is your bathroom!
0:01:23 > 0:01:25All these properties went to auction.
0:01:25 > 0:01:28And we'll find out who bought them
0:01:28 > 0:01:31and what they paid when they went under the hammer.
0:01:31 > 0:01:32Sold!
0:01:35 > 0:01:39This is Horsforth, in Leeds.
0:01:39 > 0:01:45A nice enough area. But boy, oh boy, have I got something spectacular to show you!
0:01:46 > 0:01:52What we have here is a vacant 14-bedroomed semi-detached house
0:01:52 > 0:01:56with a guide price of £400,000.
0:01:56 > 0:01:59It's not only the price that's spectacular.
0:01:59 > 0:02:02From its dormer windows, stonework and jutting balcony,
0:02:02 > 0:02:04right down to the garden setting.
0:02:04 > 0:02:07This isn't an average, run-of-the-mill auction property.
0:02:09 > 0:02:11That's a good start, isn't it?
0:02:11 > 0:02:14OK. A sticky door - not too much of an issue.
0:02:14 > 0:02:17A nice little tiled entrance here.
0:02:17 > 0:02:20The whole house probably built around 1900, 1910, I'd guess.
0:02:20 > 0:02:24Some lovely features remaining, these stained glass windows.
0:02:24 > 0:02:27Big wonderful old balustrades here.
0:02:27 > 0:02:30It's a rabbit warren, apart from that, though.
0:02:30 > 0:02:32Corridors going down there to some rooms
0:02:32 > 0:02:35and through following the natural progression into the house
0:02:35 > 0:02:38to this area here, another sort of foyer area.
0:02:38 > 0:02:41More rooms going off there, stairs down to a basement
0:02:41 > 0:02:42and then - that looks interesting.
0:02:42 > 0:02:44Just look at this room!
0:02:44 > 0:02:48It is absolutely huge, with some lovely original features,
0:02:48 > 0:02:50like that ceiling. Wow!
0:02:50 > 0:02:54I understand that recently this has been a care home of some sort.
0:02:54 > 0:02:58But at one stage in its history, this would have been somebody's house.
0:02:58 > 0:02:59How fantastic.
0:03:01 > 0:03:04And there's no shortage of character remaining in this property.
0:03:04 > 0:03:06It went to auction guided at 400,000.
0:03:06 > 0:03:10The rest of the ground floor consists of a large kitchen area,
0:03:10 > 0:03:14plus former office space and toilet.
0:03:16 > 0:03:20The basement is enormous and has separate access to the garden.
0:03:20 > 0:03:23The potential here just goes on and on.
0:03:24 > 0:03:28Upstairs it's a labyrinth. Lots of rooms all over the place.
0:03:28 > 0:03:31They're all a good size. A good sized double there.
0:03:31 > 0:03:35They've got water, sinks, things like that in them, which is great.
0:03:35 > 0:03:38But there's stairs here, there's rooms there,
0:03:38 > 0:03:40it is literally all over the place.
0:03:40 > 0:03:45One of those houses where you have to get your imagination going as to what you might use it for.
0:03:45 > 0:03:48But there's certainly a lot to see - and more!
0:03:50 > 0:03:53Each level has a different set of stairs.
0:03:54 > 0:03:57With twists and turns.
0:03:58 > 0:04:01You almost need a sat nav to work out where you are
0:04:01 > 0:04:03and I'm not even half-way round yet!
0:04:08 > 0:04:11I know I said it before, but this place just goes on and on.
0:04:11 > 0:04:14Stairways here, rooms up there. Goodness knows what's up that way.
0:04:14 > 0:04:16And it goes on through here!
0:04:17 > 0:04:23I've come through this door and the house continues to unfold its treasures, if you like.
0:04:23 > 0:04:25Obviously it's been divided up at some point.
0:04:25 > 0:04:27These are all stud partition walls, though,
0:04:27 > 0:04:29so they'd come out quite simply.
0:04:29 > 0:04:32At the moment, it's divided the house into two parts
0:04:32 > 0:04:35but I'm starting to build a picture of what you could do with this place.
0:04:35 > 0:04:37It's crying out, I think, to be converted into flats.
0:04:37 > 0:04:40Why somebody hasn't done that in the past, I don't know.
0:04:40 > 0:04:44But trust me - if you did it, oh, yes, there's lots of money to be made.
0:04:47 > 0:04:50There may also be a few headaches along the way.
0:04:50 > 0:04:52With no central staircase in the property,
0:04:52 > 0:04:56erecting any communal area for the flats could be tricky.
0:04:56 > 0:04:59But at a guide price of just 400,000,
0:04:59 > 0:05:02I'm sure that challenge didn't deter many investors.
0:05:05 > 0:05:09So, a pretty impressive property for the money.
0:05:09 > 0:05:11You know what? There's more.
0:05:11 > 0:05:13Because the lot isn't just that,
0:05:13 > 0:05:18there's two more houses included as well!
0:05:26 > 0:05:28So, beside that 14-bedroomed labyrinth,
0:05:28 > 0:05:30there are two semi-detached houses.
0:05:30 > 0:05:34One a two-bed, and the other a three-bed.
0:05:34 > 0:05:37This auction lot really does go on and on.
0:05:37 > 0:05:40The Garden House, with the stone exterior,
0:05:40 > 0:05:42has two bedrooms and three public rooms
0:05:42 > 0:05:45and is in pretty good condition.
0:05:45 > 0:05:49The three-bedroomed mews house, with the rendered exterior,
0:05:49 > 0:05:54has one public room and needs a bit more in the way of cosmetic work.
0:05:54 > 0:05:56But it still looks in reasonable structural condition.
0:05:56 > 0:05:58We asked a local property expert
0:05:58 > 0:06:02to give us his opinion on what could be done with this enormous lot,
0:06:02 > 0:06:04starting with the houses.
0:06:04 > 0:06:05There are all sorts of possibilities.
0:06:05 > 0:06:09They could be separated and split from the big house and sold off.
0:06:09 > 0:06:14In my view, that will detract somewhat from the value and the amenity of the main house.
0:06:14 > 0:06:18But on the other hand, if this is going into two-bedroomed flats,
0:06:18 > 0:06:21the people who buy these probably won't be bothered
0:06:21 > 0:06:23if there are two additional neighbours at the back.
0:06:23 > 0:06:26What are the key features of the main building?
0:06:27 > 0:06:32There's an enormous amount of potential in this building for conversion into flats.
0:06:32 > 0:06:35The location's great, the feel, the look of it,
0:06:35 > 0:06:38the fabric, the stonework, it's terrific.
0:06:38 > 0:06:43What potential value could the flats achieve if the developer were looking to sell?
0:06:43 > 0:06:50Two-bed flats converted in this, I would expect to be achieving 175,000, even in this market.
0:06:50 > 0:06:53What could a one-bedroom sell for?
0:06:53 > 0:06:59One bedroom is probably going to run out at about 140 to 150,000.
0:06:59 > 0:07:02What rental income could the flats and the houses achieve?
0:07:03 > 0:07:08The flats are going to be worth about £350 a month for a two-bed.
0:07:08 > 0:07:13The cottages will do better. They will make 550 to £600 per calendar month.
0:07:13 > 0:07:17There's certainly stacks of property here for an amazing guide price.
0:07:17 > 0:07:21But don't kid yourself. This is no project for novices.
0:07:21 > 0:07:25Getting planning permission and working through the red tape will be a major task,
0:07:25 > 0:07:27not just for the property itself,
0:07:27 > 0:07:30but do bear in mind the increased traffic that many flats would mean,
0:07:30 > 0:07:32so Highways would need to be involved.
0:07:32 > 0:07:37So that all has to be negotiated, plus the different properties' freeholds all have to be sorted
0:07:37 > 0:07:41and conversion on this scale isn't going to come cheap.
0:07:41 > 0:07:43Still, I can't help feeling excited!
0:07:43 > 0:07:46Well, wowee, what a property.
0:07:46 > 0:07:48Is this something you'd like to take on?
0:07:48 > 0:07:51Don't underestimate the amount of effort it'll take to sort out.
0:07:51 > 0:07:53But for a £400,000 guide price?
0:07:53 > 0:07:57Let's find out what happened at the auction.
0:07:57 > 0:08:01Lot number 64. A vacant 14-bedroomed semi-detached house
0:08:01 > 0:08:03plus a two-bedroomed semi-detached house
0:08:03 > 0:08:06and three-bedroomed semi-detached house.
0:08:06 > 0:08:08Somebody start me off at 400? 400 if you will.
0:08:08 > 0:08:10400. Straight in at 400.
0:08:10 > 0:08:12410, then, I'll take.
0:08:12 > 0:08:15410. Thank you, sir. 420, then?
0:08:15 > 0:08:18420. Back in. 430.
0:08:18 > 0:08:20430. 440, then?
0:08:21 > 0:08:23£430,000.
0:08:23 > 0:08:25I'll take 435 if it helps you.
0:08:25 > 0:08:27Yes? 435.
0:08:27 > 0:08:29440, then, to come back. 440, if you will.
0:08:29 > 0:08:31440. Thank you. A brand-new bidder.
0:08:31 > 0:08:33445 anywhere else?
0:08:33 > 0:08:35445. 450, sir?
0:08:36 > 0:08:38450, anybody? 450.
0:08:38 > 0:08:40455.
0:08:40 > 0:08:41And 460.
0:08:41 > 0:08:44460. 465.
0:08:44 > 0:08:45470?
0:08:46 > 0:08:48470. 475.
0:08:48 > 0:08:50480?
0:08:50 > 0:08:52No. Shakes his head.
0:08:52 > 0:08:55Selling then, for the first time, at 475.
0:08:56 > 0:08:58Second time.
0:08:58 > 0:09:01Third and final time, if we're all done.
0:09:01 > 0:09:04475. Thank you, sir. Well done.
0:09:04 > 0:09:07'That £475,000 winning bid
0:09:07 > 0:09:10'has to be the bargain of a lifetime!
0:09:10 > 0:09:14'There had been speculation that it would achieve around the £700,000 mark.
0:09:14 > 0:09:19'So property consultant and property developer Michael must be feeling very pleased.
0:09:19 > 0:09:23'I met him back at the property to hear about his plans for it.'
0:09:23 > 0:09:25Michael, I can't believe it!
0:09:25 > 0:09:28Well, Martin, I'm very happy with it. Excellent purchase.
0:09:28 > 0:09:30Did you go to auction with the intention of buying it?
0:09:30 > 0:09:33I've got to be honest and say I was a bit nervous.
0:09:33 > 0:09:35I didn't think I'd come away with this.
0:09:35 > 0:09:38- I thought I might come away with a different property.- What was that?
0:09:38 > 0:09:42- It was a semi-detached.- How many bedrooms?- Three bedrooms.
0:09:42 > 0:09:44So you went expecting a three-bed semi
0:09:44 > 0:09:47and came away with a 14-bedroomed mansion!
0:09:48 > 0:09:51Michael's purchase was not as rash as might at first seem.
0:09:51 > 0:09:55He's a surveyor by profession, who's done similar projects in the past.
0:09:55 > 0:09:58They were for clients, but this time his mission is personal.
0:09:58 > 0:10:01I'm pleased to hear he went the extra mile before the auction.
0:10:03 > 0:10:06We went to quite extensive lengths, really.
0:10:06 > 0:10:08Did a lot of up-front investigation,
0:10:08 > 0:10:11in terms of the legal packages, the technical information.
0:10:11 > 0:10:14We did the indicative layouts for apartments.
0:10:14 > 0:10:18We got specialists in to look at the damp and timber treatments.
0:10:18 > 0:10:22We've also engaged a planning consultant to help with access and parking for the conversion.
0:10:22 > 0:10:27What's the bigger picture plan for this? What are you going to do?
0:10:27 > 0:10:30I'd like to be able to keep it as an investment for the long term.
0:10:30 > 0:10:34The main property we're looking at converting to seven or eight apartments.
0:10:34 > 0:10:38Those will be rented out to professional people, hopefully.
0:10:38 > 0:10:40And the two cottages again will be rented out.
0:10:40 > 0:10:44We're looking to split the legal title of the main building and the cottages,
0:10:44 > 0:10:48because of the flexibility if any of the tenants want to buy in the future.
0:10:48 > 0:10:52'I'm impressed that Michael seems to have every base covered.
0:10:52 > 0:10:56'I'm keen to find out more about his plans for the conversion of the main property
0:10:56 > 0:10:58'into those individual flats.'
0:10:58 > 0:11:01So talk me through what we've got here.
0:11:01 > 0:11:04We've got four levels - the lower ground floor,
0:11:04 > 0:11:06the ground floor, first and second floors.
0:11:06 > 0:11:10And we've sub-divided the accommodation on each floor level
0:11:10 > 0:11:14to get seven apartments. The lower ground one will be designed for disabled access.
0:11:14 > 0:11:18- Great.- So we've got good access from the car park to the front door.
0:11:18 > 0:11:21On the ground floor, from the main entrance,
0:11:21 > 0:11:28we have a communal hallway and two-bed accommodation to the front and two-bed to the rear.
0:11:28 > 0:11:30And a similar arrangement on the first floor.
0:11:30 > 0:11:32Two-bedroomed at the front and rear as well.
0:11:32 > 0:11:34How much do you think it's going to cost?
0:11:34 > 0:11:39We've got provisional budgets of just shy of £300,000.
0:11:39 > 0:11:41- To do the main house. - To do the main house, yes.
0:11:41 > 0:11:43OK. And timescale for that?
0:11:43 > 0:11:47After planning, the works is about six to nine months.
0:11:47 > 0:11:53'So, in this new property, there'll be a total of six two-bedroomed apartments
0:11:53 > 0:11:55'and a single one-bed.
0:11:55 > 0:11:57'As for the two separate properties,
0:11:57 > 0:12:02'Michael plans to decorate and re-jiggle the space in The Garden House.
0:12:02 > 0:12:05'But the cottage will require more work.
0:12:05 > 0:12:09'He's budgeted around seven to £10,000 for both properties.'
0:12:09 > 0:12:15You know what, I'm still blown away by the fact that this place sold for 475,000 quid.
0:12:15 > 0:12:18It just goes to show. Michael the perfect man to take this job on.
0:12:18 > 0:12:22His experience as a surveyor coming in very handy.
0:12:22 > 0:12:25But don't underestimate the amount of work involved in sorting this place out.
0:12:25 > 0:12:28He's got the planning for a start.
0:12:28 > 0:12:31Then it comes to actually changing the inside around.
0:12:31 > 0:12:36Who knows? It'll be a big job. Find out how he gets on later in the show.
0:12:38 > 0:12:40For the next property that went under the hammer,
0:12:40 > 0:12:44I'm in Croydon, a suburb in the south of London.
0:12:44 > 0:12:48The house is on a quiet residential street
0:12:48 > 0:12:51and it's just a ten-minute walk from East Croydon train station.
0:12:51 > 0:12:59Here it is. Look at it, a gorgeous five-bedroomed semi-detached house built around the early 1900s.
0:12:59 > 0:13:05The price tag? Well, it was priced at auction at £315,000.
0:13:07 > 0:13:09It's a substantial looking house.
0:13:09 > 0:13:12The off-street parking is a definite bonus
0:13:12 > 0:13:15albeit a bit scruffy and in need of a tidy up.
0:13:15 > 0:13:18But from the outside, the property looks to be in pretty fair condition.
0:13:20 > 0:13:22All very promising.
0:13:23 > 0:13:26Wow! What an entrance! Beautiful front door,
0:13:26 > 0:13:30this lovely archway. It's already been stripped back.
0:13:30 > 0:13:35Look at this. Chunky stairs, three floors, you can see right up to the top.
0:13:35 > 0:13:39Absolutely breathtaking. This is the sort of hallway
0:13:39 > 0:13:42I love in a property. It's so welcoming.
0:13:42 > 0:13:44Really nice kitchen space down there.
0:13:44 > 0:13:49You've got a lounge, a beautiful drawing room or dining room here.
0:13:49 > 0:13:53Look at this, original doors - absolutely amazing!
0:13:53 > 0:13:57A lovely little alcove area, that's really nice.
0:13:57 > 0:13:59Again, there's more cornicing here.
0:13:59 > 0:14:02They've already added on a big brick-built conservatory
0:14:02 > 0:14:03which is fabulous.
0:14:03 > 0:14:08You've got a marble fire surround with this lovely cast iron fire here.
0:14:08 > 0:14:11Stunning. I'm not going to go on, because I haven't seen the rest of the house yet.
0:14:11 > 0:14:17But so far, so good. What a family house. Really nice!
0:14:21 > 0:14:25Admittedly, the front reception could do with redecoration
0:14:25 > 0:14:28and brightening up, but it's essentially a lovely room.
0:14:30 > 0:14:33The kitchen's in good order
0:14:33 > 0:14:36and even has a fantastic range cooker in situ.
0:14:36 > 0:14:38And there's a dining area at the back.
0:14:42 > 0:14:45The garden is a great size, perfect for families.
0:14:45 > 0:14:49It really is hard to find fault at the moment, at least on this floor.
0:14:50 > 0:14:53Up on the first floor, still as gorgeous as ever,
0:14:53 > 0:14:55I'm still loving it,
0:14:55 > 0:14:58you've got a really nice big family bathroom,
0:14:58 > 0:15:02a toilet, and two lovely, lovely big bedrooms there.
0:15:02 > 0:15:08But just one quibble. There's only one bathroom in this whole house.
0:15:08 > 0:15:10And we've got another floor to go yet.
0:15:10 > 0:15:14I'd like to see if there's enough room to get something upstairs.
0:15:16 > 0:15:18Up another flight of stairs to a half landing
0:15:18 > 0:15:19is the third bedroom.
0:15:22 > 0:15:27And continue up the second floor and you'll find bedrooms four and five.
0:15:29 > 0:15:33Between these two bedrooms, there's another smaller staircase.
0:15:33 > 0:15:38So, five bedrooms below, and this looks like a potential sixth bedroom.
0:15:38 > 0:15:40Ha. Don't get your hopes up
0:15:40 > 0:15:44because it probably doesn't comply with building regs and fire regulations.
0:15:44 > 0:15:48The access staircase, look, has not got enough head height.
0:15:48 > 0:15:52So if you do need a sixth bedroom, then work would definitely be needed
0:15:52 > 0:15:57to make this suitable. You could think about putting in a nice big dormer here, perhaps.
0:15:57 > 0:16:02Otherwise, I think it's a great space and you could have it as a playroom or a study.
0:16:02 > 0:16:06This is a substantial house with loads of bedrooms.
0:16:06 > 0:16:10Yes, it would make a lovely family home, but there is another option.
0:16:12 > 0:16:16It could be carved up into flats if you're looking for an investment.
0:16:16 > 0:16:19But first, there are several things to consider.
0:16:19 > 0:16:23Now, would you get planning permission for a flat conversion?
0:16:23 > 0:16:26The local council might want this area to stay as family housing.
0:16:26 > 0:16:29But even if you do get planning permission,
0:16:29 > 0:16:32is the local market already inundated with flats?
0:16:32 > 0:16:36You have to think about that, meaning they'd be hard to sell on once built.
0:16:36 > 0:16:39And then there's the cost implication.
0:16:39 > 0:16:44Converting this large house will be more pricey and more time-consuming.
0:16:44 > 0:16:47You'd have to buy multiple kitchens and bathrooms.
0:16:47 > 0:16:49There'll be more plumbing, more re-wiring to do.
0:16:49 > 0:16:54And then you've got the strict sound-proofing regulations to deal with.
0:16:54 > 0:16:56So, before you decide which way to go,
0:16:56 > 0:17:00you'll have to do your research and the maths.
0:17:06 > 0:17:11So first, we need to find out the facts and figures for this area.
0:17:11 > 0:17:14We asked a local estate agent to give us the low-down
0:17:14 > 0:17:16on this large family home.
0:17:16 > 0:17:20What does he estimate the likely rental and sales figures are
0:17:20 > 0:17:24for this five-bedroomed house that was guided at 315,000?
0:17:24 > 0:17:29Once this house is refurbished, we would market this property
0:17:29 > 0:17:31at around £480,000.
0:17:31 > 0:17:35On the rental market, around £2,000 per calendar month.
0:17:35 > 0:17:38But if you opted to convert this property into flats
0:17:38 > 0:17:42with a couple of two-beds and maybe a one-bed in the attic,
0:17:42 > 0:17:44what rental income could they earn?
0:17:44 > 0:17:48The rental values for two-bedroomed flats in this locality
0:17:48 > 0:17:50are between 900 and £1,000.
0:17:50 > 0:17:55For a one-bedroomed property, it's around seven to £800 per calendar month.
0:17:55 > 0:17:58And the local sale value of the flats?
0:17:58 > 0:18:04For a two-bedroomed flat we would market at approximately £220,000 and a leasehold interest.
0:18:04 > 0:18:06For a one-bedroomed flat, approximately £160,000.
0:18:08 > 0:18:11This is indeed a substantial five-bedroomed semi
0:18:11 > 0:18:13and not in bad condition.
0:18:13 > 0:18:19A quick cosmetic upgrade and this could be ready to move into or let out straightaway.
0:18:19 > 0:18:23And of course, there is that added option of conversion into flats.
0:18:23 > 0:18:27So, who bid for this one? Let's head to the auction and find out.
0:18:27 > 0:18:31Lot 41. As you see, a big house.
0:18:31 > 0:18:34Five bedrooms. Who'd like to kick off on this?
0:18:34 > 0:18:38How much? Three? £300,000 on my right.
0:18:38 > 0:18:40At £300,000.
0:18:40 > 0:18:42305 anywhere?
0:18:42 > 0:18:43305.
0:18:44 > 0:18:46310.
0:18:47 > 0:18:48315.
0:18:48 > 0:18:50320.
0:18:51 > 0:18:52325.
0:18:53 > 0:18:55330.
0:18:55 > 0:18:57335.
0:18:57 > 0:18:59340.
0:19:01 > 0:19:02346.
0:19:02 > 0:19:04347.
0:19:04 > 0:19:06348.
0:19:08 > 0:19:10349.
0:19:10 > 0:19:12350? 350.
0:19:12 > 0:19:14351.
0:19:14 > 0:19:16Must go one more.
0:19:16 > 0:19:18350 sitting down.
0:19:18 > 0:19:20351 elsewhere?
0:19:20 > 0:19:22Lose it.
0:19:22 > 0:19:26At £350,000, first time.
0:19:26 > 0:19:28Second time.
0:19:28 > 0:19:30Third and last time. Have you all done?
0:19:32 > 0:19:34Sold, 350. Well done.
0:19:34 > 0:19:37That final successful bid of £350,000
0:19:37 > 0:19:41was made by Andy, who was at the auction with his wife, Jill.
0:19:41 > 0:19:45They're originally from Croydon, so know the area well.
0:19:45 > 0:19:48Jill works part-time in a letting agency
0:19:48 > 0:19:50and Andy in financial services.
0:19:50 > 0:19:53Why do they want to buy this huge family home?
0:19:53 > 0:19:56I met up with them at their new property to find out.
0:19:57 > 0:20:00Andy and Jill, congratulations. I don't often say this,
0:20:00 > 0:20:03but I walked into this property and thought, "Wow!"
0:20:03 > 0:20:08It's got such a nice feeling about it. I really love this house. What's the story?
0:20:08 > 0:20:12We've developed our own properties for the last 25 years.
0:20:12 > 0:20:15Our children have left home and we're on our own
0:20:15 > 0:20:19so we're doing it ourselves as a mini business and becoming landlords as well.
0:20:19 > 0:20:22So when you say you've done it over the years with your family,
0:20:22 > 0:20:25have you renovated your own home that you've lived in
0:20:25 > 0:20:29- or have you developed other properties as well? - We've always lived in them.
0:20:29 > 0:20:32I think that's what put the kids to move out as soon as they could!
0:20:32 > 0:20:36- Have you got other jobs as well? - Yeah, I'm a financial adviser.
0:20:36 > 0:20:39I work for a letting agent part-time.
0:20:39 > 0:20:41Match made in heaven, you two!
0:20:42 > 0:20:47'So Jill and Andy decided to turn a hobby into a business to supplement their salaries.
0:20:47 > 0:20:51'But why were they attracted to this particular property?'
0:20:52 > 0:20:55We'd viewed all the ones that we thought we might be buying.
0:20:55 > 0:20:58This one, we missed the viewing.
0:20:58 > 0:20:59So we did drive by.
0:20:59 > 0:21:03- And Jill's got this... - I look in the letter box! - She's the letter box girl!
0:21:03 > 0:21:06So when you did your letter box opening, you were pleasantly surprised?
0:21:06 > 0:21:09I could see the character features, or some of them.
0:21:09 > 0:21:10I thought, "This looks like a good one."
0:21:10 > 0:21:14'A little naughty, perhaps, but never mind.
0:21:14 > 0:21:18'In this case, Jill and Andy have found themselves a little jewel.
0:21:18 > 0:21:23'Is it going to remain a house, or do they have other plans for it?'
0:21:23 > 0:21:25A bit open-minded at the moment.
0:21:25 > 0:21:27Initially, we need to get some income coming in
0:21:27 > 0:21:30so we're going to do the bathroom, completely decorate
0:21:30 > 0:21:33and get some tenants in as a house.
0:21:33 > 0:21:38And when the tenants move out, we'll review the situation
0:21:38 > 0:21:40and decide what to do.
0:21:40 > 0:21:43When you say do the bathroom, the bathroom's fine up there.
0:21:43 > 0:21:46No, the new bathroom. We're going to install a new bathroom.
0:21:46 > 0:21:49- Where will that be? - Above the existing bathroom
0:21:49 > 0:21:52because of the plumbing. It makes sense to do that.
0:21:52 > 0:21:54- Then you'll lose a bedroom.- Yeah.
0:21:54 > 0:21:57We've got five bedrooms and an attic room
0:21:57 > 0:22:02so the attic room, we've got to amend the staircase, then make it into the fifth bedroom.
0:22:02 > 0:22:06- What budget have you got for the property?- Ooh, 10,000?
0:22:06 > 0:22:09- 10,000-ish.- But I do all the decorating,
0:22:09 > 0:22:11so it's not going to cost a fortune.
0:22:11 > 0:22:15- You must be delighted that it's already in this state.- Yeah.
0:22:15 > 0:22:18Somebody's already stripped most of the wallpaper off anyway!
0:22:18 > 0:22:20A lick of paint and it'll look lovely.
0:22:20 > 0:22:22How come you're the decorator of the family?
0:22:22 > 0:22:24By default, I think.
0:22:24 > 0:22:28I've always been a bit artistic and I enjoy doing it, so...
0:22:28 > 0:22:32That's my job and he's the heavy construction.
0:22:32 > 0:22:35- I'm Demolition Dave! - Demolition Dave!
0:22:38 > 0:22:41'They're not planning to change the kitchen at all, but...
0:22:42 > 0:22:47'..Demolition Dave intends to create a doorway from the kitchen dining area
0:22:47 > 0:22:50'to the conservatory, where the current window is.
0:22:50 > 0:22:54'They've set a timescale of six to eight weeks.'
0:22:54 > 0:22:57- I think you've been incredibly lucky with this one.- We have, yes.
0:22:57 > 0:23:01- I really hope it works out. Thanks, Jill. Lovely. Thank you. - Thanks very much.
0:23:02 > 0:23:07So Andy and Jill are going to do an eight-week refurb, then let it out.
0:23:07 > 0:23:12But will they be able to bring out even more charm and character in this property
0:23:12 > 0:23:15for a budget of £10,000?
0:23:15 > 0:23:19Wait and see. Join me later on in the programme.
0:23:20 > 0:23:24Coming up - there's a choice of sleeping arrangements in this two-bed Cornish cottage.
0:23:25 > 0:23:29On this side of the property, the second bedroom is absolutely massive!
0:23:30 > 0:23:36Back in Croydon, refurbishing this house has put a spring in Jill and Andy's step.
0:23:36 > 0:23:39- The floor was suspended and it was a bit bouncy.- Very bouncy!
0:23:41 > 0:23:45But first, we return to Leeds where project management has been key.
0:23:45 > 0:23:49The cottages were the priority, to get them ready for occupation.
0:23:54 > 0:23:56Earlier, in Horsforth near Leeds,
0:23:56 > 0:23:58we met Michael, a building surveyor,
0:23:58 > 0:24:01who runs his own property consultancy.
0:24:01 > 0:24:08He bought this mansion plus two semi-detached houses all for £475,000.
0:24:08 > 0:24:13The four-storey mansion had served as a care home and had 14 bedrooms.
0:24:13 > 0:24:18It was considerably bigger than the property that was his alternative on auction day.
0:24:20 > 0:24:23- I thought I might come away with a different property.- What was that?
0:24:23 > 0:24:27- That was a semi-detached. - How many bedrooms?- Three bedrooms.
0:24:27 > 0:24:29So you went expecting a three-bed semi,
0:24:29 > 0:24:32and came away with a 14-bedroomed mansion!
0:24:33 > 0:24:36Michael planned to convert the mansion into seven apartments
0:24:36 > 0:24:40and refurbish the houses with the intention of letting them.
0:24:40 > 0:24:42He hoped, after getting planning permission,
0:24:42 > 0:24:44that the work would take six to nine months.
0:24:44 > 0:24:48So it's with bated breath we're back after - wait for it -
0:24:49 > 0:24:52..three years and eight months!
0:24:52 > 0:24:55This former care home has certainly been cared for!
0:25:05 > 0:25:08Will the interior live up to the exterior?
0:25:33 > 0:25:35Well, yes is the answer!
0:25:35 > 0:25:39Three one-bedroomed flats and four two-bedroomed flats have been built
0:25:39 > 0:25:43with bathrooms and separate en-suites.
0:25:45 > 0:25:48On the ground floor, off the original hallway,
0:25:48 > 0:25:50are flats two, three and four.
0:25:52 > 0:25:55Flat one is incomplete down in the basement.
0:25:57 > 0:25:58Up on the first floor,
0:25:58 > 0:26:01the door on the left here leads to another staircase
0:26:01 > 0:26:03and a fully completed flat.
0:26:04 > 0:26:09It's got two bedrooms, a bathroom and a large living area.
0:26:09 > 0:26:11As Michael explains.
0:26:12 > 0:26:18This is flat seven and we've got an open plan living/dining area
0:26:18 > 0:26:20with a kitchen facility. It was originally two bedrooms
0:26:20 > 0:26:25and we took down the separating wall but we managed to keep the fireplaces.
0:26:25 > 0:26:29The good thing about this flat is we managed to maintain the windows
0:26:29 > 0:26:32and get the great views outside from the top level.
0:26:32 > 0:26:35Some of the flats are more advanced than others.
0:26:35 > 0:26:40There are still carpets to go down, and those finishing touches to add.
0:26:41 > 0:26:43This is flat four.
0:26:43 > 0:26:46We've got a mid-floor flat at the back of the property.
0:26:46 > 0:26:49It's got its own entrance door and staircase.
0:26:49 > 0:26:52We opened up two bedrooms, we took down the central dividing wall.
0:26:52 > 0:26:56We managed to keep the original feature fireplaces in here,
0:26:56 > 0:26:59which is a great feature for people.
0:26:59 > 0:27:01And we created a new modern kitchen.
0:27:01 > 0:27:04We also provided the bathroom on the other side of the wall.
0:27:05 > 0:27:08Across the courtyard, as intended,
0:27:08 > 0:27:11Michael's team completed the two cottages first.
0:27:11 > 0:27:15But initially, his plans for the seven flats were put on hold.
0:27:15 > 0:27:20The cottages were the priority, to get them ready for occupation.
0:27:20 > 0:27:21That took a couple of months
0:27:21 > 0:27:23and tenants were straight in.
0:27:23 > 0:27:26I got planning permission for the main building,
0:27:26 > 0:27:27to convert to seven apartments.
0:27:27 > 0:27:30And then I just sat on it for a while
0:27:30 > 0:27:31until the market picked up.
0:27:31 > 0:27:35In February this year we started the conversion
0:27:35 > 0:27:37and we're just finishing off now.
0:27:37 > 0:27:43So the flat conversions have taken around seven and a half months for the team of building contractors
0:27:43 > 0:27:45that Michael employed.
0:27:45 > 0:27:48He came every week to check the layouts were going as planned.
0:27:48 > 0:27:52This ground floor flat took a lot of work.
0:27:52 > 0:27:55We stripped out all the walls to leave it open plan
0:27:55 > 0:27:57and we've sub-divided the space again
0:27:57 > 0:28:02so we've got an open plan kitchen/ living/ dining room
0:28:02 > 0:28:04and we've provided two separate double bedrooms
0:28:04 > 0:28:08and each of those have got an en-suite.
0:28:08 > 0:28:13Michael had budgeted around £12,000 for the work on the two cottages.
0:28:13 > 0:28:16But how much have the flat conversions cost?
0:28:16 > 0:28:21The budget for the works on the main house was about £300,000.
0:28:21 > 0:28:24I'm pretty much on budget with that.
0:28:24 > 0:28:26There was a separate budget for the cottages.
0:28:26 > 0:28:30That went slightly over, but nothing to get excited about.
0:28:30 > 0:28:34So about £312,000
0:28:34 > 0:28:37on top of the 475,000 Michael paid at auction
0:28:37 > 0:28:43takes his total investment to around £787,000.
0:28:44 > 0:28:48Time to get some professional advice from two local property experts.
0:28:48 > 0:28:52What will they think of the seven-flat conversion
0:28:52 > 0:28:54and the two cottages?
0:28:54 > 0:28:56I think they've done a very good job on them.
0:28:56 > 0:28:59They've successfully converted a big difficult old house
0:28:59 > 0:29:02into a lot of very attractive flats.
0:29:02 > 0:29:05The layouts have been very thoughtfully designed
0:29:05 > 0:29:09and they're appealing to first time buyers, those down-sizing.
0:29:09 > 0:29:11That's what makes the development, I think.
0:29:11 > 0:29:13Michael intends to let the flats
0:29:13 > 0:29:17so how much does the returning agent think that could earn?
0:29:17 > 0:29:20The one-bedroomed flats will let reliably
0:29:20 > 0:29:22for £475 a month.
0:29:22 > 0:29:28The two-bedroomed flats at a range of about 550 to £575 per calendar month.
0:29:28 > 0:29:31I think that's a touch on the lower side for the one beds.
0:29:31 > 0:29:35We'll probably market them for about 525, 550 upwards.
0:29:35 > 0:29:40The second agent thinks the one-beds could achieve £500 per calendar month.
0:29:40 > 0:29:41And what about the two-beds?
0:29:41 > 0:29:49The two-bed flats will range between £695 to £725 per calendar month.
0:29:49 > 0:29:52The budget we were aiming for was about 650,
0:29:52 > 0:29:55so they sound to be not far off.
0:29:56 > 0:30:00Michael's renting the two-bed cottage out for £725 per calendar month.
0:30:00 > 0:30:03What about the three-bedroomed house?
0:30:04 > 0:30:09The three-bed I would value at about £900 per calendar month.
0:30:09 > 0:30:13That's quite positive. We've actually let it a little bit lower than that at the moment.
0:30:13 > 0:30:15So it would be nice to do that next time.
0:30:16 > 0:30:20How much could the flats command if they were offered for sale?
0:30:20 > 0:30:25The one-bedroomed apartment will range between £135,000
0:30:25 > 0:30:27to £140,000.
0:30:27 > 0:30:32The two-bedroomed apartments will range between £165,000
0:30:32 > 0:30:34and £180,000 for the top one.
0:30:34 > 0:30:40The flats are going to be worth an average of £130,000 for the one bedrooms,
0:30:40 > 0:30:43and £160,000 for the two-bedroomed flats.
0:30:43 > 0:30:46How much could the whole seven-flat property be worth
0:30:46 > 0:30:48if it was offered for sale?
0:30:48 > 0:30:53To sell the entire property in one transaction to one buyer,
0:30:53 > 0:30:55my estimation is one million pounds.
0:30:55 > 0:30:58And if the two cottages were included?
0:30:58 > 0:31:01Sale value for the apartments and the houses,
0:31:01 > 0:31:06I'd put at a range of 1.5 to £1.6 million.
0:31:06 > 0:31:11With Michael's total investment standing at 787,000,
0:31:11 > 0:31:13those valuations would generate a gross profit
0:31:13 > 0:31:18of 713 to £813,000
0:31:18 > 0:31:20before taxes and expenses.
0:31:22 > 0:31:24We've had it independently valued for the bank
0:31:24 > 0:31:28and their value was about 1.5 to 1.6 million.
0:31:30 > 0:31:34It's taken three years and eight months for Michael to get to this point
0:31:34 > 0:31:37after sitting tight when recession took hold.
0:31:37 > 0:31:41But with those valuations, he must be delighted with the choice he made.
0:31:43 > 0:31:45I can't fail to be pleased. It's a mammoth project.
0:31:45 > 0:31:49Everything's gone right on it so far.
0:31:49 > 0:31:54We're in budget and the values have come back fantastically well. It's been a good investment.
0:31:54 > 0:31:58The latest news is that Michael has received an offer to buy the flats
0:31:58 > 0:32:01but he's decided to keep them and rent them out.
0:32:03 > 0:32:05Liskeard in Cornwall,
0:32:05 > 0:32:0920 miles from Plymouth, with the coast to the south, Bodmin Moor to the north
0:32:09 > 0:32:11and a livestock market every Thursday.
0:32:11 > 0:32:16In fact, this is one of the last weekly markets surviving in Cornwall.
0:32:21 > 0:32:25The question is, will the property I'm here to see be a prime cut
0:32:25 > 0:32:27or mutton dressed as lamb?
0:32:27 > 0:32:31I'm heading four miles out of town to the hamlet of Quethiock.
0:32:34 > 0:32:38And you can't deny that it's absolutely charming.
0:32:38 > 0:32:41Lots of little cottages. The one I'm here to see
0:32:41 > 0:32:43is actually more a house.
0:32:43 > 0:32:45The guide price was 125,000 quid,
0:32:45 > 0:32:47two bedrooms, and it's up these steps.
0:32:49 > 0:32:54There are winding lanes and stairways to some of the houses
0:32:54 > 0:32:57which is cute, but does mean parking can be tricky.
0:32:57 > 0:32:59So the garage is good news.
0:32:59 > 0:33:02The house itself is on an elevated site
0:33:02 > 0:33:04with a lovely front garden
0:33:04 > 0:33:07which means terrific views of the rest of this gorgeous village.
0:33:07 > 0:33:11However, what I'm seeing up close isn't quite so cute.
0:33:11 > 0:33:13Those cracks in the rendering and the windows
0:33:13 > 0:33:16look at though they may need some work.
0:33:17 > 0:33:19Before I actually go into the house,
0:33:19 > 0:33:23I need to talk about this thing on the front of the property.
0:33:23 > 0:33:26It's a porch kind of scenario.
0:33:26 > 0:33:28A very nasty crack there.
0:33:28 > 0:33:31Doesn't look like it's been bonded into the main body of the house very well.
0:33:31 > 0:33:35But I just don't think it really does justice to the front of the property
0:33:35 > 0:33:38so you may want to think about killing two birds with one stone
0:33:38 > 0:33:42and getting rid of it and putting something a bit nicer in its place.
0:33:42 > 0:33:45But into the property. Stairs up to the bedrooms there.
0:33:45 > 0:33:47A living room over to that side
0:33:47 > 0:33:49and a slight disappointment,
0:33:49 > 0:33:51this is your bathroom.
0:33:51 > 0:33:54I don't think it's an ideal position for it right there.
0:33:54 > 0:33:56It's obviously very tired and dated as well.
0:33:56 > 0:34:01So refurbishment required. Before that, figure out where you're going to put it.
0:34:01 > 0:34:04But down the corridor, lots of storage space.
0:34:04 > 0:34:05A bit of a pantry area there.
0:34:05 > 0:34:11Through into the kitchen, so you could extend the kitchen out into that pantry or open up a wall.
0:34:11 > 0:34:13The kitchen's not a bad size.
0:34:13 > 0:34:18A real throwback to the time the property was built, the serving hatch here.
0:34:18 > 0:34:22Again, maybe an obvious thing is to take out that wall and open all this up.
0:34:22 > 0:34:25So I'm already thinking quite a lot of internal playing around.
0:34:25 > 0:34:30Units, pretty much as you might have expected. Need a bit of work.
0:34:30 > 0:34:36But in terms of practicalities, a bit more space there for a washing machine, tumble drier, whatever.
0:34:36 > 0:34:38That's good. I didn't know what to expect when I came in,
0:34:38 > 0:34:40and I'm pleasantly surprised.
0:34:40 > 0:34:44But it all depends on that bathroom. Let's see if there's any scope to put that upstairs.
0:34:54 > 0:34:58If the bathroom can go upstairs, I'd consider still keeping a loo here, though
0:34:58 > 0:35:01and maybe you could squeeze a study out of the remaining space.
0:35:01 > 0:35:05Talking of space, there's not much of that out the back of the house.
0:35:05 > 0:35:11There's no room to extend out there beyond that kitchen utility porch.
0:35:11 > 0:35:14Here's hoping upstairs holds a surprise or two.
0:35:16 > 0:35:19That's good news. At the top of the stairs is this little room.
0:35:19 > 0:35:24It's already got a loo in there, so a soil pipe and water connections.
0:35:24 > 0:35:29So that would make moving the bathroom up here a fairly simple job.
0:35:29 > 0:35:32A bedroom on this side, and more good news,
0:35:32 > 0:35:36because on this side the second bedroom is absolutely massive!
0:35:36 > 0:35:38It goes out to a dormer in that direction
0:35:38 > 0:35:40but if you come this way, there's a Velux in here
0:35:40 > 0:35:44and I reckon if you were to put another dormer that way,
0:35:44 > 0:35:47and increase the size of this even more to put the bathroom,
0:35:47 > 0:35:51then extending this way into that space.
0:35:51 > 0:35:55If you did that, you could easily get a bathroom in there, with or without the dormer on there.
0:35:55 > 0:35:59You'd still have a massive bedroom here, move the bathroom upstairs and job done!
0:35:59 > 0:36:03The second bedroom already has a wash-hand basin
0:36:03 > 0:36:07but for me, a bathroom upstairs is a must-have if possible.
0:36:07 > 0:36:12So sacrificing some space out of the bigger bedroom is a no-brainer.
0:36:12 > 0:36:14It would certainly make the property more saleable.
0:36:14 > 0:36:18Let's face it, this lot is really all about the location
0:36:18 > 0:36:21which, even when grey and drizzly, is simply charming.
0:36:22 > 0:36:26We asked a local estate agent along to see what he thought of the house,
0:36:26 > 0:36:29guided at 125,000.
0:36:29 > 0:36:31Did he agree with me on the plumbing arrangements?
0:36:31 > 0:36:33With the layout of the property,
0:36:33 > 0:36:36I feel you can't really move the bathroom upstairs
0:36:36 > 0:36:39because of the restricted headroom for a full-on bathroom.
0:36:39 > 0:36:41So that would have to stay downstairs.
0:36:41 > 0:36:42But you could put some en-suite up there.
0:36:44 > 0:36:46Well, we will have to disagree on that.
0:36:46 > 0:36:51But it makes me think that dormer idea is possibly the best solution.
0:36:51 > 0:36:54Of course, adding a dormer would push the cost up considerably,
0:36:54 > 0:36:57so how much could the house be worth after a refurbishment?
0:36:57 > 0:36:59More than its present value?
0:37:00 > 0:37:06I feel today in the current market, as it stands, the property is worth about 125 to £130,000.
0:37:06 > 0:37:08Done up to a very good standard,
0:37:08 > 0:37:11I feel it would be worth 165 to £170,000.
0:37:11 > 0:37:14So there might be a decent bit of profit on this one
0:37:14 > 0:37:16if you didn't splash the cash too much.
0:37:16 > 0:37:20What did he think this two-bed house could fetch on the rental market?
0:37:20 > 0:37:25The property would rent for £600 per calendar month.
0:37:25 > 0:37:29I reckon any property in this village is worth a look
0:37:29 > 0:37:31and potentially a purchase.
0:37:31 > 0:37:32The house itself needs a bit of work,
0:37:32 > 0:37:37but an opportunity for somebody to put their stamp on it and possibly live here.
0:37:37 > 0:37:41How fantastic. Let's see who fancied it when it went under the hammer.
0:37:41 > 0:37:45Lot 204, a two-bedroomed detached house for modernisation.
0:37:45 > 0:37:49And we're guiding £125,000 to start.
0:37:49 > 0:37:52Anyone like to start at 115?
0:37:52 > 0:37:54115. OK.
0:37:54 > 0:37:57At 115. In twos, if I may.
0:37:57 > 0:37:59115 and 117 now.
0:37:59 > 0:38:01117. 119.
0:38:02 > 0:38:04119. 121.
0:38:04 > 0:38:06It's odd numbers - they bamboozle me! 121.
0:38:06 > 0:38:09123 seated now.
0:38:09 > 0:38:12123 seated. I'll take one if it helps.
0:38:12 > 0:38:14One does help. 124.
0:38:14 > 0:38:17125. Seated at 125.
0:38:17 > 0:38:19126?
0:38:19 > 0:38:20No? Are you sure?
0:38:20 > 0:38:23First time, ladies and gentlemen. 126.
0:38:23 > 0:38:24126. 27.
0:38:24 > 0:38:2628?
0:38:26 > 0:38:29No? £127,000 seated.
0:38:30 > 0:38:32Quite sure we're all done?
0:38:32 > 0:38:34£127,000.
0:38:34 > 0:38:36It's your bid, sir. Sold to you.
0:38:36 > 0:38:39'The successful bidders, hidden from view,
0:38:39 > 0:38:42'who secured the property for 127,000
0:38:42 > 0:38:44'were John and his wife, Rhea.
0:38:44 > 0:38:48'They had headed west from London to retire to Cornwall a year ago.
0:38:52 > 0:38:54'Rhea gave up a manager's job
0:38:54 > 0:38:57'and John's a retired post office branch manager.
0:38:57 > 0:39:00'They've been living in rented accommodation.
0:39:00 > 0:39:03'I met up with them back at the property to find out their plans.'
0:39:06 > 0:39:10- John and Rhea, lovely to meet you both.- And you, Martin. - Congratulations.- Thank you.
0:39:10 > 0:39:12- What a cute place.- Lovely.
0:39:12 > 0:39:14Tell me why you wanted to buy it.
0:39:14 > 0:39:17Um, we have been looking around for a while
0:39:17 > 0:39:22at bungalows and flatlands and three garages and things like that.
0:39:22 > 0:39:27Then we came along on this one on spec about three days before the auction.
0:39:27 > 0:39:30We both liked it so we decided to bid for it.
0:39:30 > 0:39:35- Right. With a view to what, it being a rental property or what?- A home.
0:39:35 > 0:39:36- Great.- Moving in, yes.
0:39:36 > 0:39:41We moved down from London. After a lifetime in London, we decided to come to the country.
0:39:41 > 0:39:45But difficult to find the right property. This ticked all the boxes.
0:39:45 > 0:39:47- No, it didn't tick any of the boxes...- But we liked it.
0:39:47 > 0:39:51- We fell in love with it.- What was it that captivated you so much,
0:39:51 > 0:39:55that made you throw away all your plans and say, "I won't buy that, I'll buy this instead."
0:39:55 > 0:40:01It's got a nice feel to the house. When we walked in, it had a nice comfortable feel.
0:40:01 > 0:40:04- It felt like a home.- We wanted something that needed doing
0:40:04 > 0:40:07because if we moved into a prestigious house,
0:40:07 > 0:40:09we'd change it anyway to how we liked it.
0:40:09 > 0:40:11So we're starting with a blank canvas.
0:40:18 > 0:40:21'John intends to do a lot of the work himself,
0:40:21 > 0:40:23'employing qualified tradesmen where required.
0:40:26 > 0:40:28'He's hoping it will take three to four months.
0:40:28 > 0:40:30'So what exactly have they got in mind?'
0:40:32 > 0:40:36Starting upstairs first, we'll take out those Velux windows
0:40:36 > 0:40:41and put in a dormer - if Cornwall County Council will be kind and let us do it.
0:40:41 > 0:40:46- All the way along the back to make a...- A nice long run of windows.
0:40:46 > 0:40:48- Ah.- It's only got two bedrooms at the moment
0:40:48 > 0:40:50so we'll put in a third bedroom-cum-study
0:40:50 > 0:40:53and an en-suite to the other bathroom.
0:40:53 > 0:40:56That porch outside is coming down
0:40:56 > 0:40:57and a conservatory to go on the front.
0:40:57 > 0:41:00The kitchen has got to have some sparkle in it.
0:41:00 > 0:41:04- You're going to introduce sparkle? - I'm introducing sparkle. - Sparkle and twinkle.
0:41:04 > 0:41:09I've even picked out the work surface that sparkles. It's got glitter in it.
0:41:09 > 0:41:11She chose that before we chose the house!
0:41:15 > 0:41:19'It sounds like this happy couple are going to need quite a long shiny worktop!'
0:41:21 > 0:41:24- We'll knock down the wall into the pantry and make the kitchen larger. - Great.
0:41:24 > 0:41:28But there is another option of knocking down the wall in the bathroom
0:41:28 > 0:41:32and making the bathroom into a shower room and having a kitchen diner.
0:41:32 > 0:41:34What kind of budget have you put aside?
0:41:34 > 0:41:3625 to 30k.
0:41:37 > 0:41:42'John and Rhea will continue to live in rented accommodation until their new Cornish home is ready.
0:41:42 > 0:41:45But what I haven't established is why Cornwall?
0:41:45 > 0:41:49What is it about this beautiful county they love so much?
0:41:51 > 0:41:56I wanted to move west cos the theory is, the further west you go, the warmer it gets.
0:41:56 > 0:41:59California was out. She wanted to grow an almond tree
0:41:59 > 0:42:02and we heard the only place in the country you can grow an almond tree is Cornwall.
0:42:02 > 0:42:05- That fruits.- That fruits. - Yeah, Cornwall.
0:42:05 > 0:42:09What's the time between planting and bearing fruit of an almond tree?
0:42:09 > 0:42:12- Something tells me it'll be quite a few years.- I've no idea.
0:42:12 > 0:42:14But we're planning to stay for a while.
0:42:14 > 0:42:20I can't wait to come back. And hopefully see a fledgling, if that's the right word, almond tree!
0:42:25 > 0:42:28Well, it doesn't tick any of their boxes,
0:42:28 > 0:42:31but I still think this is a great property -
0:42:31 > 0:42:38at least it will be after Rhea and John's twinkly, glittery, blingy renovation!
0:42:38 > 0:42:40Still lots of questions to answer, of course.
0:42:40 > 0:42:42Will the dormer be approved?
0:42:42 > 0:42:44How will they do the bathroom and the kitchen?
0:42:44 > 0:42:49And most importantly, will there be fruit on the almond tree when we return?
0:42:49 > 0:42:51Find out later in the show.
0:42:54 > 0:43:00Finding good tradesmen is often the key to getting properties done up on time and on budget.
0:43:00 > 0:43:04But sometimes, people choose to do the work themselves to maximise profit.
0:43:04 > 0:43:08So, have our buyers been getting stuck in, or just getting stuck?
0:43:08 > 0:43:09Let's find out.
0:43:10 > 0:43:12Back now to Croydon, south London,
0:43:12 > 0:43:17where, earlier in the programme, Andy bought this imposing five-bedroomed property,
0:43:17 > 0:43:20with a room in the attic, for 350,000.
0:43:21 > 0:43:26He's a financial advisor. His wife, Jill, works part-time in a letting agency
0:43:26 > 0:43:29and they have years of DIY experience.
0:43:30 > 0:43:33We've developed our own properties for the last 25 years.
0:43:33 > 0:43:35Our children have left home and we're on our own
0:43:35 > 0:43:38so we're doing it ourselves as a mini business.
0:43:38 > 0:43:41The couple plan to renovate the house and rent it out.
0:43:41 > 0:43:45They were going to convert one bedroom to a second bathroom
0:43:45 > 0:43:49and modify the attic room so it would pass building regulations
0:43:49 > 0:43:52to be classed officially as the new fifth bedroom.
0:43:52 > 0:43:55They were also going to decorate throughout.
0:43:55 > 0:43:59Ten weeks later we met up with them to have a look around.
0:44:01 > 0:44:03The outside looks better already.
0:44:05 > 0:44:07It continues inside.
0:44:16 > 0:44:19Neutral colour is very fashionable,
0:44:19 > 0:44:21but that dated carpet's still there.
0:44:22 > 0:44:25Happily, the floral look has been pruned elsewhere in the house.
0:44:26 > 0:44:29Just look at the two bedrooms on the first floor.
0:44:41 > 0:44:45The original bathroom on the first floor has lost the corner shower
0:44:45 > 0:44:48but with this new large bath and contemporary floor and wall tiles
0:44:48 > 0:44:50it's looking very smart.
0:44:54 > 0:44:58And the dividing wall to the toilet has been moved just a little
0:44:58 > 0:45:00to accommodate a basin.
0:45:00 > 0:45:03Andy's installed that second bathroom on the floor above.
0:45:04 > 0:45:07When you came last time, this room was a bedroom.
0:45:07 > 0:45:11We had to get another bathroom in somewhere
0:45:11 > 0:45:15so because this is above the existing bathroom, this was the ideal place to put it.
0:45:15 > 0:45:18It's not finished yet, but now all the plumbing's in,
0:45:18 > 0:45:22it's just a case of getting the tiler or myself to get it tiled
0:45:22 > 0:45:24and it'll be a lovely bathroom. It's a nice big room.
0:45:24 > 0:45:27It'll finish the house off nicely.
0:45:27 > 0:45:29'A fabulous second bathroom.
0:45:29 > 0:45:32'But does that mean they sacrificed a bedroom?
0:45:33 > 0:45:35'Up one more flight of stairs to the second floor
0:45:35 > 0:45:38'there are still two bedrooms.
0:45:41 > 0:45:44'The front bedroom has laminate flooring and new windows.
0:45:47 > 0:45:50'Bedroom four is at the back, overlooking the garden.
0:45:51 > 0:45:54'The previous layout and access to the attic
0:45:54 > 0:45:56'prevented it being counted as a bedroom.
0:45:56 > 0:46:00'But with a reconfigured stairway, that's all been resolved.
0:46:02 > 0:46:04'So there are still five bedrooms.
0:46:08 > 0:46:11'Back on the ground floor, off the dining room,
0:46:11 > 0:46:16'Andy has created a doorway from the conservatory through to the breakfast room.
0:46:16 > 0:46:17'But it didn't stop there.'
0:46:20 > 0:46:23We didn't really like the outlook of the conservatory,
0:46:23 > 0:46:25so we took three of the windows out
0:46:25 > 0:46:29and we got a bricklayer to build a brick wall in second-hand bricks.
0:46:29 > 0:46:32That's all done now, but we propose painting it all white.
0:46:32 > 0:46:36We've also done the floor in there as well because the floor was suspended
0:46:36 > 0:46:38- and it was a bit bouncy. - Very bouncy!
0:46:38 > 0:46:44So we took that up and had that re-done in concrete with underfloor heating.
0:46:44 > 0:46:46'What about the kitchen? Any changes there?'
0:46:47 > 0:46:50The kitchen we've not altered an awful lot, really.
0:46:50 > 0:46:52We've put an integrated washing machine in.
0:46:52 > 0:46:55We've re-tiled the floor. It was lino before.
0:46:55 > 0:46:58And in the breakfast room where we knocked through
0:46:58 > 0:47:01we've reorganised the units and put some granite worktops in
0:47:01 > 0:47:03and just redecorated.
0:47:03 > 0:47:07We felt it didn't really need that much doing to it, not as a rental property.
0:47:11 > 0:47:15'Outside has been sandstone rendered and the conservatory's been painted.
0:47:15 > 0:47:21'While Jill's been decorating inside, Andy's been plumbing and knocking things down
0:47:21 > 0:47:24'with help from a builder, plasterer and tiler
0:47:24 > 0:47:26'plus a friend who's an electrician.
0:47:26 > 0:47:28'So how much have they spent so far?'
0:47:29 > 0:47:35The initial budget was £10,000 and we haven't quite spent that yet.
0:47:35 > 0:47:39We've bought virtually everything, so there's not much else to spend the money on.
0:47:39 > 0:47:42'They paid £350,000 at auction,
0:47:42 > 0:47:45'so if they can keep to that £10,000 budget,
0:47:45 > 0:47:49'it would bring their total investment here to 360,000.
0:47:50 > 0:47:55'Time to hear if two local estate agents will reckon their efforts have paid off.'
0:47:58 > 0:48:00The owners have certainly improved the house.
0:48:00 > 0:48:02They've added an extra bathroom,
0:48:02 > 0:48:04nice neutral decorations.
0:48:04 > 0:48:07It's a real lettable house.
0:48:07 > 0:48:09I think the kitchen is a lovely kitchen.
0:48:09 > 0:48:13It's a very big kitchen. It speaks for the house. It's well done up.
0:48:13 > 0:48:17I think for this size of house, it's definitely worth having an extra bathroom.
0:48:17 > 0:48:20Otherwise people are fighting for the bathroom in the morning.
0:48:20 > 0:48:21The bedroom sizes are great.
0:48:21 > 0:48:24It will suit a large family, a big family.
0:48:24 > 0:48:26It suits the area very well.
0:48:26 > 0:48:31'So will the estate agents value it above the £360,000 invested here?'
0:48:31 > 0:48:38For sale you'd be looking to achieve between £430,000 and £440,000.
0:48:38 > 0:48:40We would expect this property to achieve
0:48:40 > 0:48:43between 450,000 to £500,000.
0:48:43 > 0:48:47'That valuation range would generate a gross profit
0:48:47 > 0:48:52'of 70 to £140,000 before taxes and expenses.'
0:48:52 > 0:48:54- Very good, yes.- It's not bad, yeah.
0:48:54 > 0:48:59- Yeah.- Considering what we've spent so far.- Yeah, that's good news. Good news.- Very good.
0:49:00 > 0:49:03'But their plan is to let the house.
0:49:03 > 0:49:05'So what income could they expect?'
0:49:05 > 0:49:08If you were to put the property on the market for rent, you'd be looking to achieve
0:49:08 > 0:49:15between £1,600 per calendar month and £1,650 per calendar month.
0:49:15 > 0:49:19We would market this property for rental at £1,600 per calendar month.
0:49:19 > 0:49:22- That's a bit light.- We're hoping for a bit more, really.
0:49:22 > 0:49:28We're aiming to put it on at 1,800 with a view to hopefully getting 1,700.
0:49:29 > 0:49:32'After years of renovating their own homes,
0:49:32 > 0:49:34'Jill and Andy have embarked on this
0:49:34 > 0:49:37'in the hope it would be a new direction for them.
0:49:37 > 0:49:39'So will they be doing this again?'
0:49:40 > 0:49:43- More than likely!- Yeah, we've got it in our blood, haven't we?
0:49:43 > 0:49:47Yeah, we've been playing with property for over 25 years now
0:49:47 > 0:49:49so I don't suppose it's going to stop now!
0:49:54 > 0:49:57Liskeard in Cornwall is one of the last remaining Cornish towns
0:49:57 > 0:50:00that still has a weekly livestock market.
0:50:00 > 0:50:03But it was a property auction that sold this two-bedroomed cottage
0:50:03 > 0:50:07in the village of Quethiock, about four miles from Liskeard.
0:50:10 > 0:50:14The new owners who paid 127,000 were John and Rhea,
0:50:14 > 0:50:18who had headed west from London to retire in Cornwall a year earlier.
0:50:24 > 0:50:29The couple were in rented accommodation until they found a house to make their home.
0:50:30 > 0:50:34We wanted something that needed doing because if we moved into a prestigious house,
0:50:34 > 0:50:36we'd change it anyway to how we liked it.
0:50:36 > 0:50:38So we're starting with a blank canvas.
0:50:38 > 0:50:43And Rhea had some sparkling interior design in mind.
0:50:49 > 0:50:52- You're going to introduce sparkle? - I'm introducing sparkle. - Sparkle and twinkle!
0:50:52 > 0:50:57I've picked out a work surface that sparkles. It's got glitter in it.
0:50:57 > 0:50:59She chose that before we chose the house!
0:51:01 > 0:51:04'John was going to do a lot of the work himself
0:51:04 > 0:51:08'and get a builder to extend the first floor and add a third bedroom.
0:51:11 > 0:51:14'It's now eight-and-a-half months later.
0:51:15 > 0:51:18'The old lean-to that was falling off the wall
0:51:18 > 0:51:21'has been replaced with this smart new conservatory.
0:51:24 > 0:51:27'And replacement windows have been installed as well.
0:51:29 > 0:51:32'Inside, there are signs of sparkle in the bathroom
0:51:32 > 0:51:34'as Rhea explains.'
0:51:35 > 0:51:40The bathroom, you might remember, was a beautiful shade of avocado.
0:51:40 > 0:51:44So that all came out. We decided to put the bath upstairs and the shower down here.
0:51:44 > 0:51:47Just brightened it up. Lots of white, lots of glitter and sparkle
0:51:47 > 0:51:50with the tiles and the grout.
0:51:50 > 0:51:55It's not quite finished. There's some chrome trimmings to go down the wall, around the ceiling and floor.
0:51:55 > 0:51:58But other than that, I'm really pleased with it.
0:51:59 > 0:52:03'But the bathroom is where the sparkle currently ends.
0:52:03 > 0:52:06'Because while John and Rhea were waiting for the planning permission
0:52:06 > 0:52:10'for their first floor dormer extension to be approved,
0:52:10 > 0:52:13'they decided only to do the structural work downstairs.
0:52:15 > 0:52:19'In the kitchen, the wall to the former pantry has been knocked down
0:52:19 > 0:52:21'and the old units have been removed.
0:52:22 > 0:52:26'It took three months for planning permission to be approved
0:52:26 > 0:52:27'and, as John explains,
0:52:27 > 0:52:31'the first floor of the cottage will change considerably.'
0:52:31 > 0:52:34The plans are that you go up the stairs into a landing
0:52:34 > 0:52:38with a window facing, to give more light at the top of the stairs.
0:52:38 > 0:52:41On the right will be an en-suite bathroom for the bedroom
0:52:41 > 0:52:44and on the left there will be a third bedroom.
0:52:44 > 0:52:47The idea was that we'd have it done before moving in to the place.
0:52:47 > 0:52:51But that didn't happen because of the time it's taken,
0:52:51 > 0:52:54so we're in and it's become less of an urgent problem now.
0:52:59 > 0:53:01'So far, John has done the majority of the work.
0:53:01 > 0:53:06'But why the continued delay in starting the building programme upstairs?'
0:53:08 > 0:53:10We've had some quotes from local builders
0:53:10 > 0:53:13then we had a builder who was due to start but couldn't.
0:53:13 > 0:53:16So we've kind of come to a full stop on that at the moment.
0:53:16 > 0:53:18So we're looking for a new builder.
0:53:18 > 0:53:21'This refurbishment seems to go one step forward
0:53:21 > 0:53:22'and then two steps back.
0:53:22 > 0:53:25'There are still final touches required in the conservatory.'
0:53:25 > 0:53:30It's not quite finished. We've got some painting to do on the wall
0:53:30 > 0:53:33and fill in the dimples left by the cavity wall guys!
0:53:33 > 0:53:36And the floor is just a temporary covering.
0:53:36 > 0:53:38That will come up, underfloor heating will go down
0:53:38 > 0:53:41and some tiling put in here.
0:53:41 > 0:53:44Then we'll finish it off with some nice blinds as well.
0:53:44 > 0:53:47'Outside, Rhea's waiting till winter to clear the undergrowth
0:53:47 > 0:53:50'so as not to disturb the birds.
0:53:50 > 0:53:53'She'll then plant her almond tree.
0:53:53 > 0:53:56'Her sparkling worktop is on hold as well
0:53:56 > 0:53:59'but the new kitchen units and bath are already bought.
0:53:59 > 0:54:04'So how much of their 25 to £30,000 budget have they spent so far?'
0:54:04 > 0:54:09Well over half of that budget went onto the conservatory and the windows.
0:54:09 > 0:54:11By the time we've done it,
0:54:11 > 0:54:15it will be double the budget that we originally said.
0:54:15 > 0:54:20'That projected £60,000 budget on top of the £127,000 they paid at auction
0:54:20 > 0:54:25'will take their total investment here to £187,000.
0:54:27 > 0:54:29'We invited two property experts
0:54:29 > 0:54:31'to come and inspect it in its current state
0:54:31 > 0:54:34'and give their opinions on the future prospects here.'
0:54:34 > 0:54:36They've already made some major changes here
0:54:36 > 0:54:41because the front porch was falling away from the property when we sold it to them.
0:54:41 > 0:54:44They've also started in the bathroom and kitchen areas.
0:54:44 > 0:54:46So already good improvements.
0:54:46 > 0:54:50The quality of the bathroom is stunning. Lovely. Really nice.
0:54:50 > 0:54:52They've obviously not skimped on anything.
0:54:52 > 0:54:56So if they continue that through the property, it'll be very nice indeed.
0:54:56 > 0:54:59'Once the third bedroom is added,
0:54:59 > 0:55:06'the estate agents think the house could rent for between 650 and £675 per calendar month.'
0:55:06 > 0:55:10It's something we never considered. We bought it to live in for ourselves,
0:55:10 > 0:55:13not to move on and leave someone else living in it.
0:55:13 > 0:55:17'But will the resale valuation leave them in hot water?
0:55:17 > 0:55:23'Could the place be valued above the £187,000 that Rhea and John will have invested
0:55:23 > 0:55:27'and what could it be worth if they carry out their plans
0:55:27 > 0:55:29'to create the three bedrooms and an en-suite upstairs?'
0:55:29 > 0:55:34If you were to keep it as a two-bedroom, you'd be looking at a value
0:55:34 > 0:55:36of between 155 to £160,000.
0:55:36 > 0:55:39If they were to complete the extension as they plan,
0:55:39 > 0:55:43then we would look at a value of between 160 to £170,000.
0:55:43 > 0:55:45I would value as a two-bed property
0:55:45 > 0:55:49between 160,000 and £165,000.
0:55:49 > 0:55:51If they were to convert it to a three bedroom,
0:55:51 > 0:55:55I would be looking at £165,000 to £170,000.
0:55:55 > 0:56:02'So no profit. In fact, a loss of between around 17 and £27,000.'
0:56:02 > 0:56:04We're a little bit disappointed, really, aren't we?
0:56:04 > 0:56:06I thought probably more than that.
0:56:06 > 0:56:09But on the other hand, with the property market the way it is,
0:56:09 > 0:56:11it's probably a fair reflection.
0:56:11 > 0:56:14'Well, you have to admire Rhea and John's laid-back outlook.
0:56:14 > 0:56:19'They seem resigned to this renovation taking just as long as it takes.
0:56:19 > 0:56:24'I'm sure that eventually, Rhea will get all the sparkle she wants, though.
0:56:24 > 0:56:29'So are they pleased they upped sticks and relocated to the south-west?'
0:56:33 > 0:56:36Moving from London to Cornwall? Don't regret it for a second. Love it.
0:56:36 > 0:56:39- Not at all. - Life is totally different.
0:56:39 > 0:56:42Just wouldn't think about going back.
0:56:44 > 0:56:48Make sure you join us next time for more properties that sold under the hammer.
0:56:48 > 0:56:51- Look forward to seeing you then. Goodbye!- Goodbye!
0:57:13 > 0:57:15Subtitles by Red Bee Media Ltd