Episode 72 Homes Under the Hammer

Hello. Welcome to Homes Under the Hammer.

For many, buying at auction gives the chance to buy properties

that are in need of some work.

Yes, people like to put their own personality and stamp and style on their properties.

And you can get that when you buy your home under the hammer.

We love the buzz and excitement of the auction room.

You can sense the frustration and hope in the air.

You never know how it's going to go until the very last second.

So what inspired the buyers on today's show?

In Leeds, I visit one of the grandest places we've ever featured.

Boy, oh boy, have I got something spectacular to show you!

In Croydon, Surrey, a house that doesn't have a lift, but certainly lifts my spirits.

Up on the first floor, still as gorgeous as ever, I'm still loving it!

And a pretty village with lovely views.

But it's not all good news at this Cornish cottage.

A slight disappointment - this is your bathroom!

All these properties went to auction.

And we'll find out who bought them

and what they paid when they went under the hammer.

Sold!

This is Horsforth, in Leeds.

A nice enough area. But boy, oh boy, have I got something spectacular to show you!

What we have here is a vacant 14-bedroomed semi-detached house

with a guide price of £400,000.

It's not only the price that's spectacular.

From its dormer windows, stonework and jutting balcony,

right down to the garden setting.

This isn't an average, run-of-the-mill auction property.

That's a good start, isn't it?

OK. A sticky door - not too much of an issue.

A nice little tiled entrance here.

The whole house probably built around 1900, 1910, I'd guess.

Some lovely features remaining, these stained glass windows.

Big wonderful old balustrades here.

It's a rabbit warren, apart from that, though.

Corridors going down there to some rooms

and through following the natural progression into the house

to this area here, another sort of foyer area.

More rooms going off there, stairs down to a basement

and then - that looks interesting.

Just look at this room!

It is absolutely huge, with some lovely original features,

like that ceiling. Wow!

I understand that recently this has been a care home of some sort.

But at one stage in its history, this would have been somebody's house.

How fantastic.

And there's no shortage of character remaining in this property.

It went to auction guided at 400,000.

The rest of the ground floor consists of a large kitchen area,

plus former office space and toilet.

The basement is enormous and has separate access to the garden.

The potential here just goes on and on.

Upstairs it's a labyrinth. Lots of rooms all over the place.

They're all a good size. A good sized double there.

They've got water, sinks, things like that in them, which is great.

But there's stairs here, there's rooms there,

it is literally all over the place.

One of those houses where you have to get your imagination going as to what you might use it for.

But there's certainly a lot to see - and more!

Each level has a different set of stairs.

With twists and turns.

You almost need a sat nav to work out where you are

and I'm not even half-way round yet!

I know I said it before, but this place just goes on and on.

Stairways here, rooms up there. Goodness knows what's up that way.

And it goes on through here!

I've come through this door and the house continues to unfold its treasures, if you like.

Obviously it's been divided up at some point.

These are all stud partition walls, though,

so they'd come out quite simply.

At the moment, it's divided the house into two parts

but I'm starting to build a picture of what you could do with this place.

It's crying out, I think, to be converted into flats.

Why somebody hasn't done that in the past, I don't know.

But trust me - if you did it, oh, yes, there's lots of money to be made.

There may also be a few headaches along the way.

With no central staircase in the property,

erecting any communal area for the flats could be tricky.

But at a guide price of just 400,000,

I'm sure that challenge didn't deter many investors.

So, a pretty impressive property for the money.

You know what? There's more.

Because the lot isn't just that,

there's two more houses included as well!

So, beside that 14-bedroomed labyrinth,

there are two semi-detached houses.

One a two-bed, and the other a three-bed.

This auction lot really does go on and on.

The Garden House, with the stone exterior,

has two bedrooms and three public rooms

and is in pretty good condition.

The three-bedroomed mews house, with the rendered exterior,

has one public room and needs a bit more in the way of cosmetic work.

But it still looks in reasonable structural condition.

We asked a local property expert

to give us his opinion on what could be done with this enormous lot,

starting with the houses.

There are all sorts of possibilities.

They could be separated and split from the big house and sold off.

In my view, that will detract somewhat from the value and the amenity of the main house.

But on the other hand, if this is going into two-bedroomed flats,

the people who buy these probably won't be bothered

if there are two additional neighbours at the back.

What are the key features of the main building?

There's an enormous amount of potential in this building for conversion into flats.

The location's great, the feel, the look of it,

the fabric, the stonework, it's terrific.

What potential value could the flats achieve if the developer were looking to sell?

Two-bed flats converted in this, I would expect to be achieving 175,000, even in this market.

What could a one-bedroom sell for?

One bedroom is probably going to run out at about 140 to 150,000.

What rental income could the flats and the houses achieve?

The flats are going to be worth about £350 a month for a two-bed.

The cottages will do better. They will make 550 to £600 per calendar month.

There's certainly stacks of property here for an amazing guide price.

But don't kid yourself. This is no project for novices.

Getting planning permission and working through the red tape will be a major task,

not just for the property itself,

but do bear in mind the increased traffic that many flats would mean,

so Highways would need to be involved.

So that all has to be negotiated, plus the different properties' freeholds all have to be sorted

and conversion on this scale isn't going to come cheap.

Still, I can't help feeling excited!

Well, wowee, what a property.

Is this something you'd like to take on?

Don't underestimate the amount of effort it'll take to sort out.

But for a £400,000 guide price?

Let's find out what happened at the auction.

Lot number 64. A vacant 14-bedroomed semi-detached house

plus a two-bedroomed semi-detached house

and three-bedroomed semi-detached house.

Somebody start me off at 400? 400 if you will.

400. Straight in at 400.

410, then, I'll take.

410. Thank you, sir. 420, then?

420. Back in. 430.

430. 440, then?

£430,000.

I'll take 435 if it helps you.

Yes? 435.

440, then, to come back. 440, if you will.

440. Thank you. A brand-new bidder.

445 anywhere else?

445. 450, sir?

450, anybody? 450.

455.

And 460.

460. 465.

470?

470. 475.

480?

No. Shakes his head.

Selling then, for the first time, at 475.

Second time.

Third and final time, if we're all done.

475. Thank you, sir. Well done.

'That £475,000 winning bid

'has to be the bargain of a lifetime!

'There had been speculation that it would achieve around the £700,000 mark.

'So property consultant and property developer Michael must be feeling very pleased.

'I met him back at the property to hear about his plans for it.'

Michael, I can't believe it!

Well, Martin, I'm very happy with it. Excellent purchase.

Did you go to auction with the intention of buying it?

I've got to be honest and say I was a bit nervous.

I didn't think I'd come away with this.

-I thought I might come away with a different property.

-What was that?

-It was a semi-detached.

-How many bedrooms?

-Three bedrooms.

So you went expecting a three-bed semi

and came away with a 14-bedroomed mansion!

Michael's purchase was not as rash as might at first seem.

He's a surveyor by profession, who's done similar projects in the past.

They were for clients, but this time his mission is personal.

I'm pleased to hear he went the extra mile before the auction.

We went to quite extensive lengths, really.

Did a lot of up-front investigation,

in terms of the legal packages, the technical information.

We did the indicative layouts for apartments.

We got specialists in to look at the damp and timber treatments.

We've also engaged a planning consultant to help with access and parking for the conversion.

What's the bigger picture plan for this? What are you going to do?

I'd like to be able to keep it as an investment for the long term.

The main property we're looking at converting to seven or eight apartments.

Those will be rented out to professional people, hopefully.

And the two cottages again will be rented out.

We're looking to split the legal title of the main building and the cottages,

because of the flexibility if any of the tenants want to buy in the future.

'I'm impressed that Michael seems to have every base covered.

'I'm keen to find out more about his plans for the conversion of the main property

'into those individual flats.'

So talk me through what we've got here.

We've got four levels - the lower ground floor,

the ground floor, first and second floors.

And we've sub-divided the accommodation on each floor level

to get seven apartments. The lower ground one will be designed for disabled access.

-Great.

-So we've got good access from the car park to the front door.

On the ground floor, from the main entrance,

we have a communal hallway and two-bed accommodation to the front and two-bed to the rear.

And a similar arrangement on the first floor.

Two-bedroomed at the front and rear as well.

How much do you think it's going to cost?

We've got provisional budgets of just shy of £300,000.

-To do the main house.

-To do the main house, yes.

OK. And timescale for that?

After planning, the works is about six to nine months.

'So, in this new property, there'll be a total of six two-bedroomed apartments

'and a single one-bed.

'As for the two separate properties,

'Michael plans to decorate and re-jiggle the space in The Garden House.

'But the cottage will require more work.

'He's budgeted around seven to £10,000 for both properties.'

You know what, I'm still blown away by the fact that this place sold for 475,000 quid.

It just goes to show. Michael the perfect man to take this job on.

His experience as a surveyor coming in very handy.

But don't underestimate the amount of work involved in sorting this place out.

He's got the planning for a start.

Then it comes to actually changing the inside around.

Who knows? It'll be a big job. Find out how he gets on later in the show.

For the next property that went under the hammer,

I'm in Croydon, a suburb in the south of London.

The house is on a quiet residential street

and it's just a ten-minute walk from East Croydon train station.

Here it is. Look at it, a gorgeous five-bedroomed semi-detached house built around the early 1900s.

The price tag? Well, it was priced at auction at £315,000.

It's a substantial looking house.

The off-street parking is a definite bonus

albeit a bit scruffy and in need of a tidy up.

But from the outside, the property looks to be in pretty fair condition.

All very promising.

Wow! What an entrance! Beautiful front door,

this lovely archway. It's already been stripped back.

Look at this. Chunky stairs, three floors, you can see right up to the top.

Absolutely breathtaking. This is the sort of hallway

I love in a property. It's so welcoming.

Really nice kitchen space down there.

You've got a lounge, a beautiful drawing room or dining room here.

Look at this, original doors - absolutely amazing!

A lovely little alcove area, that's really nice.

Again, there's more cornicing here.

They've already added on a big brick-built conservatory

which is fabulous.

You've got a marble fire surround with this lovely cast iron fire here.

Stunning. I'm not going to go on, because I haven't seen the rest of the house yet.

But so far, so good. What a family house. Really nice!

Admittedly, the front reception could do with redecoration

and brightening up, but it's essentially a lovely room.

The kitchen's in good order

and even has a fantastic range cooker in situ.

And there's a dining area at the back.

The garden is a great size, perfect for families.

It really is hard to find fault at the moment, at least on this floor.

Up on the first floor, still as gorgeous as ever,

I'm still loving it,

you've got a really nice big family bathroom,

a toilet, and two lovely, lovely big bedrooms there.

But just one quibble. There's only one bathroom in this whole house.

And we've got another floor to go yet.

I'd like to see if there's enough room to get something upstairs.

Up another flight of stairs to a half landing

is the third bedroom.

And continue up the second floor and you'll find bedrooms four and five.

Between these two bedrooms, there's another smaller staircase.

So, five bedrooms below, and this looks like a potential sixth bedroom.

Ha. Don't get your hopes up

because it probably doesn't comply with building regs and fire regulations.

The access staircase, look, has not got enough head height.

So if you do need a sixth bedroom, then work would definitely be needed

to make this suitable. You could think about putting in a nice big dormer here, perhaps.

Otherwise, I think it's a great space and you could have it as a playroom or a study.

This is a substantial house with loads of bedrooms.

Yes, it would make a lovely family home, but there is another option.

It could be carved up into flats if you're looking for an investment.

But first, there are several things to consider.

Now, would you get planning permission for a flat conversion?

The local council might want this area to stay as family housing.

But even if you do get planning permission,

is the local market already inundated with flats?

You have to think about that, meaning they'd be hard to sell on once built.

And then there's the cost implication.

Converting this large house will be more pricey and more time-consuming.

You'd have to buy multiple kitchens and bathrooms.

There'll be more plumbing, more re-wiring to do.

And then you've got the strict sound-proofing regulations to deal with.

So, before you decide which way to go,

you'll have to do your research and the maths.

So first, we need to find out the facts and figures for this area.

We asked a local estate agent to give us the low-down

on this large family home.

What does he estimate the likely rental and sales figures are

for this five-bedroomed house that was guided at 315,000?

Once this house is refurbished, we would market this property

at around £480,000.

On the rental market, around £2,000 per calendar month.

But if you opted to convert this property into flats

with a couple of two-beds and maybe a one-bed in the attic,

what rental income could they earn?

The rental values for two-bedroomed flats in this locality

are between 900 and £1,000.

For a one-bedroomed property, it's around seven to £800 per calendar month.

And the local sale value of the flats?

For a two-bedroomed flat we would market at approximately £220,000 and a leasehold interest.

For a one-bedroomed flat, approximately £160,000.

This is indeed a substantial five-bedroomed semi

and not in bad condition.

A quick cosmetic upgrade and this could be ready to move into or let out straightaway.

And of course, there is that added option of conversion into flats.

So, who bid for this one? Let's head to the auction and find out.

Lot 41. As you see, a big house.

Five bedrooms. Who'd like to kick off on this?

How much? Three? £300,000 on my right.

At £300,000.

305 anywhere?

305.

310.

315.

320.

325.

330.

335.

340.

346.

347.

348.

349.

350? 350.

351.

Must go one more.

350 sitting down.

351 elsewhere?

Lose it.

At £350,000, first time.

Second time.

Third and last time. Have you all done?

Sold, 350. Well done.

That final successful bid of £350,000

was made by Andy, who was at the auction with his wife, Jill.

They're originally from Croydon, so know the area well.

Jill works part-time in a letting agency

and Andy in financial services.

Why do they want to buy this huge family home?

I met up with them at their new property to find out.

Andy and Jill, congratulations. I don't often say this,

but I walked into this property and thought, "Wow!"

It's got such a nice feeling about it. I really love this house. What's the story?

We've developed our own properties for the last 25 years.

Our children have left home and we're on our own

so we're doing it ourselves as a mini business and becoming landlords as well.

So when you say you've done it over the years with your family,

have you renovated your own home that you've lived in

-or have you developed other properties as well?

-We've always lived in them.

I think that's what put the kids to move out as soon as they could!

-Have you got other jobs as well?

-Yeah, I'm a financial adviser.

I work for a letting agent part-time.

Match made in heaven, you two!

'So Jill and Andy decided to turn a hobby into a business to supplement their salaries.

'But why were they attracted to this particular property?'

We'd viewed all the ones that we thought we might be buying.

This one, we missed the viewing.

So we did drive by.

-And Jill's got this...

-I look in the letter box!

-She's the letter box girl!

So when you did your letter box opening, you were pleasantly surprised?

I could see the character features, or some of them.

I thought, "This looks like a good one."

'A little naughty, perhaps, but never mind.

'In this case, Jill and Andy have found themselves a little jewel.

'Is it going to remain a house, or do they have other plans for it?'

A bit open-minded at the moment.

Initially, we need to get some income coming in

so we're going to do the bathroom, completely decorate

and get some tenants in as a house.

And when the tenants move out, we'll review the situation

and decide what to do.

When you say do the bathroom, the bathroom's fine up there.

No, the new bathroom. We're going to install a new bathroom.

-Where will that be?

-Above the existing bathroom

because of the plumbing. It makes sense to do that.

-Then you'll lose a bedroom.

-Yeah.

We've got five bedrooms and an attic room

so the attic room, we've got to amend the staircase, then make it into the fifth bedroom.

-What budget have you got for the property?

-Ooh, 10,000?

-10,000-ish.

-But I do all the decorating,

so it's not going to cost a fortune.

-You must be delighted that it's already in this state.

-Yeah.

Somebody's already stripped most of the wallpaper off anyway!

A lick of paint and it'll look lovely.

How come you're the decorator of the family?

By default, I think.

I've always been a bit artistic and I enjoy doing it, so...

That's my job and he's the heavy construction.

-I'm Demolition Dave!

-Demolition Dave!

'They're not planning to change the kitchen at all, but...

'..Demolition Dave intends to create a doorway from the kitchen dining area

'to the conservatory, where the current window is.

'They've set a timescale of six to eight weeks.'

-I think you've been incredibly lucky with this one.

-We have, yes.

-I really hope it works out. Thanks, Jill. Lovely. Thank you.

-Thanks very much.

So Andy and Jill are going to do an eight-week refurb, then let it out.

But will they be able to bring out even more charm and character in this property

for a budget of £10,000?

Wait and see. Join me later on in the programme.

Coming up - there's a choice of sleeping arrangements in this two-bed Cornish cottage.

On this side of the property, the second bedroom is absolutely massive!

Back in Croydon, refurbishing this house has put a spring in Jill and Andy's step.

-The floor was suspended and it was a bit bouncy.

-Very bouncy!

But first, we return to Leeds where project management has been key.

The cottages were the priority, to get them ready for occupation.

Earlier, in Horsforth near Leeds,

we met Michael, a building surveyor,

who runs his own property consultancy.

He bought this mansion plus two semi-detached houses all for £475,000.

The four-storey mansion had served as a care home and had 14 bedrooms.

It was considerably bigger than the property that was his alternative on auction day.

-I thought I might come away with a different property.

-What was that?

-That was a semi-detached.

-How many bedrooms?

-Three bedrooms.

So you went expecting a three-bed semi,

and came away with a 14-bedroomed mansion!

Michael planned to convert the mansion into seven apartments

and refurbish the houses with the intention of letting them.

He hoped, after getting planning permission,

that the work would take six to nine months.

So it's with bated breath we're back after - wait for it -

..three years and eight months!

This former care home has certainly been cared for!

Will the interior live up to the exterior?

Well, yes is the answer!

Three one-bedroomed flats and four two-bedroomed flats have been built

with bathrooms and separate en-suites.

On the ground floor, off the original hallway,

are flats two, three and four.

Flat one is incomplete down in the basement.

Up on the first floor,

the door on the left here leads to another staircase

and a fully completed flat.

It's got two bedrooms, a bathroom and a large living area.

As Michael explains.

This is flat seven and we've got an open plan living/dining area

with a kitchen facility. It was originally two bedrooms

and we took down the separating wall but we managed to keep the fireplaces.

The good thing about this flat is we managed to maintain the windows

and get the great views outside from the top level.

Some of the flats are more advanced than others.

There are still carpets to go down, and those finishing touches to add.

This is flat four.

We've got a mid-floor flat at the back of the property.

It's got its own entrance door and staircase.

We opened up two bedrooms, we took down the central dividing wall.

We managed to keep the original feature fireplaces in here,

which is a great feature for people.

And we created a new modern kitchen.

We also provided the bathroom on the other side of the wall.

Across the courtyard, as intended,

Michael's team completed the two cottages first.

But initially, his plans for the seven flats were put on hold.

The cottages were the priority, to get them ready for occupation.

That took a couple of months

and tenants were straight in.

I got planning permission for the main building,

to convert to seven apartments.

And then I just sat on it for a while

until the market picked up.

In February this year we started the conversion

and we're just finishing off now.

So the flat conversions have taken around seven and a half months for the team of building contractors

that Michael employed.

He came every week to check the layouts were going as planned.

This ground floor flat took a lot of work.

We stripped out all the walls to leave it open plan

and we've sub-divided the space again

so we've got an open plan kitchen/ living/ dining room

and we've provided two separate double bedrooms

and each of those have got an en-suite.

Michael had budgeted around £12,000 for the work on the two cottages.

But how much have the flat conversions cost?

The budget for the works on the main house was about £300,000.

I'm pretty much on budget with that.

There was a separate budget for the cottages.

That went slightly over, but nothing to get excited about.

So about £312,000

on top of the 475,000 Michael paid at auction

takes his total investment to around £787,000.

Time to get some professional advice from two local property experts.

What will they think of the seven-flat conversion

and the two cottages?

I think they've done a very good job on them.

They've successfully converted a big difficult old house

into a lot of very attractive flats.

The layouts have been very thoughtfully designed

and they're appealing to first time buyers, those down-sizing.

That's what makes the development, I think.

Michael intends to let the flats

so how much does the returning agent think that could earn?

The one-bedroomed flats will let reliably

for £475 a month.

The two-bedroomed flats at a range of about 550 to £575 per calendar month.

I think that's a touch on the lower side for the one beds.

We'll probably market them for about 525, 550 upwards.

The second agent thinks the one-beds could achieve £500 per calendar month.

And what about the two-beds?

The two-bed flats will range between £695 to £725 per calendar month.

The budget we were aiming for was about 650,

so they sound to be not far off.

Michael's renting the two-bed cottage out for £725 per calendar month.

What about the three-bedroomed house?

The three-bed I would value at about £900 per calendar month.

That's quite positive. We've actually let it a little bit lower than that at the moment.

So it would be nice to do that next time.

How much could the flats command if they were offered for sale?

The one-bedroomed apartment will range between £135,000

to £140,000.

The two-bedroomed apartments will range between £165,000

and £180,000 for the top one.

The flats are going to be worth an average of £130,000 for the one bedrooms,

and £160,000 for the two-bedroomed flats.

How much could the whole seven-flat property be worth

if it was offered for sale?

To sell the entire property in one transaction to one buyer,

my estimation is one million pounds.

And if the two cottages were included?

Sale value for the apartments and the houses,

I'd put at a range of 1.5 to £1.6 million.

With Michael's total investment standing at 787,000,

those valuations would generate a gross profit

of 713 to £813,000

before taxes and expenses.

We've had it independently valued for the bank

and their value was about 1.5 to 1.6 million.

It's taken three years and eight months for Michael to get to this point

after sitting tight when recession took hold.

But with those valuations, he must be delighted with the choice he made.

I can't fail to be pleased. It's a mammoth project.

Everything's gone right on it so far.

We're in budget and the values have come back fantastically well. It's been a good investment.

The latest news is that Michael has received an offer to buy the flats

but he's decided to keep them and rent them out.

Liskeard in Cornwall,

20 miles from Plymouth, with the coast to the south, Bodmin Moor to the north

and a livestock market every Thursday.

In fact, this is one of the last weekly markets surviving in Cornwall.

The question is, will the property I'm here to see be a prime cut

or mutton dressed as lamb?

I'm heading four miles out of town to the hamlet of Quethiock.

And you can't deny that it's absolutely charming.

Lots of little cottages. The one I'm here to see

is actually more a house.

The guide price was 125,000 quid,

two bedrooms, and it's up these steps.

There are winding lanes and stairways to some of the houses

which is cute, but does mean parking can be tricky.

So the garage is good news.

The house itself is on an elevated site

with a lovely front garden

which means terrific views of the rest of this gorgeous village.

However, what I'm seeing up close isn't quite so cute.

Those cracks in the rendering and the windows

look at though they may need some work.

Before I actually go into the house,

I need to talk about this thing on the front of the property.

It's a porch kind of scenario.

A very nasty crack there.

Doesn't look like it's been bonded into the main body of the house very well.

But I just don't think it really does justice to the front of the property

so you may want to think about killing two birds with one stone

and getting rid of it and putting something a bit nicer in its place.

But into the property. Stairs up to the bedrooms there.

A living room over to that side

and a slight disappointment,

this is your bathroom.

I don't think it's an ideal position for it right there.

It's obviously very tired and dated as well.

So refurbishment required. Before that, figure out where you're going to put it.

But down the corridor, lots of storage space.

A bit of a pantry area there.

Through into the kitchen, so you could extend the kitchen out into that pantry or open up a wall.

The kitchen's not a bad size.

A real throwback to the time the property was built, the serving hatch here.

Again, maybe an obvious thing is to take out that wall and open all this up.

So I'm already thinking quite a lot of internal playing around.

Units, pretty much as you might have expected. Need a bit of work.

But in terms of practicalities, a bit more space there for a washing machine, tumble drier, whatever.

That's good. I didn't know what to expect when I came in,

and I'm pleasantly surprised.

But it all depends on that bathroom. Let's see if there's any scope to put that upstairs.

If the bathroom can go upstairs, I'd consider still keeping a loo here, though

and maybe you could squeeze a study out of the remaining space.

Talking of space, there's not much of that out the back of the house.

There's no room to extend out there beyond that kitchen utility porch.

Here's hoping upstairs holds a surprise or two.

That's good news. At the top of the stairs is this little room.

It's already got a loo in there, so a soil pipe and water connections.

So that would make moving the bathroom up here a fairly simple job.

A bedroom on this side, and more good news,

because on this side the second bedroom is absolutely massive!

It goes out to a dormer in that direction

but if you come this way, there's a Velux in here

and I reckon if you were to put another dormer that way,

and increase the size of this even more to put the bathroom,

then extending this way into that space.

If you did that, you could easily get a bathroom in there, with or without the dormer on there.

You'd still have a massive bedroom here, move the bathroom upstairs and job done!

The second bedroom already has a wash-hand basin

but for me, a bathroom upstairs is a must-have if possible.

So sacrificing some space out of the bigger bedroom is a no-brainer.

It would certainly make the property more saleable.

Let's face it, this lot is really all about the location

which, even when grey and drizzly, is simply charming.

We asked a local estate agent along to see what he thought of the house,

guided at 125,000.

Did he agree with me on the plumbing arrangements?

With the layout of the property,

I feel you can't really move the bathroom upstairs

because of the restricted headroom for a full-on bathroom.

So that would have to stay downstairs.

But you could put some en-suite up there.

Well, we will have to disagree on that.

But it makes me think that dormer idea is possibly the best solution.

Of course, adding a dormer would push the cost up considerably,

so how much could the house be worth after a refurbishment?

More than its present value?

I feel today in the current market, as it stands, the property is worth about 125 to £130,000.

Done up to a very good standard,

I feel it would be worth 165 to £170,000.

So there might be a decent bit of profit on this one

if you didn't splash the cash too much.

What did he think this two-bed house could fetch on the rental market?

The property would rent for £600 per calendar month.

I reckon any property in this village is worth a look

and potentially a purchase.

The house itself needs a bit of work,

but an opportunity for somebody to put their stamp on it and possibly live here.

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

Lot 204, a two-bedroomed detached house for modernisation.

And we're guiding £125,000 to start.

Anyone like to start at 115?

115. OK.

At 115. In twos, if I may.

115 and 117 now.

117. 119.

119. 121.

It's odd numbers - they bamboozle me! 121.

123 seated now.

123 seated. I'll take one if it helps.

One does help. 124.

125. Seated at 125.

126?

No? Are you sure?

First time, ladies and gentlemen. 126.

126. 27.

28?

No? £127,000 seated.

Quite sure we're all done?

£127,000.

It's your bid, sir. Sold to you.

'The successful bidders, hidden from view,

'who secured the property for 127,000

'were John and his wife, Rhea.

'They had headed west from London to retire to Cornwall a year ago.

'Rhea gave up a manager's job

'and John's a retired post office branch manager.

'They've been living in rented accommodation.

'I met up with them back at the property to find out their plans.'

-John and Rhea, lovely to meet you both.

-And you, Martin.

-Congratulations.

-Thank you.

-What a cute place.

-Lovely.

Tell me why you wanted to buy it.

Um, we have been looking around for a while

at bungalows and flatlands and three garages and things like that.

Then we came along on this one on spec about three days before the auction.

We both liked it so we decided to bid for it.

-Right. With a view to what, it being a rental property or what?

-A home.

-Great.

-Moving in, yes.

We moved down from London. After a lifetime in London, we decided to come to the country.

But difficult to find the right property. This ticked all the boxes.

-No, it didn't tick any of the boxes...

-But we liked it.

-We fell in love with it.

-What was it that captivated you so much,

that made you throw away all your plans and say, "I won't buy that, I'll buy this instead."

It's got a nice feel to the house. When we walked in, it had a nice comfortable feel.

-It felt like a home.

-We wanted something that needed doing

because if we moved into a prestigious house,

we'd change it anyway to how we liked it.

So we're starting with a blank canvas.

'John intends to do a lot of the work himself,

'employing qualified tradesmen where required.

'He's hoping it will take three to four months.

'So what exactly have they got in mind?'

Starting upstairs first, we'll take out those Velux windows

and put in a dormer - if Cornwall County Council will be kind and let us do it.

-All the way along the back to make a...

-A nice long run of windows.

-Ah.

-It's only got two bedrooms at the moment

so we'll put in a third bedroom-cum-study

and an en-suite to the other bathroom.

That porch outside is coming down

and a conservatory to go on the front.

The kitchen has got to have some sparkle in it.

-You're going to introduce sparkle?

-I'm introducing sparkle.

-Sparkle and twinkle.

I've even picked out the work surface that sparkles. It's got glitter in it.

She chose that before we chose the house!

'It sounds like this happy couple are going to need quite a long shiny worktop!'

-We'll knock down the wall into the pantry and make the kitchen larger.

-Great.

But there is another option of knocking down the wall in the bathroom

and making the bathroom into a shower room and having a kitchen diner.

What kind of budget have you put aside?

25 to 30k.

'John and Rhea will continue to live in rented accommodation until their new Cornish home is ready.

But what I haven't established is why Cornwall?

What is it about this beautiful county they love so much?

I wanted to move west cos the theory is, the further west you go, the warmer it gets.

California was out. She wanted to grow an almond tree

and we heard the only place in the country you can grow an almond tree is Cornwall.

-That fruits.

-That fruits.

-Yeah, Cornwall.

What's the time between planting and bearing fruit of an almond tree?

-Something tells me it'll be quite a few years.

-I've no idea.

But we're planning to stay for a while.

I can't wait to come back. And hopefully see a fledgling, if that's the right word, almond tree!

Well, it doesn't tick any of their boxes,

but I still think this is a great property -

at least it will be after Rhea and John's twinkly, glittery, blingy renovation!

Still lots of questions to answer, of course.

Will the dormer be approved?

How will they do the bathroom and the kitchen?

And most importantly, will there be fruit on the almond tree when we return?

Find out later in the show.

Finding good tradesmen is often the key to getting properties done up on time and on budget.

But sometimes, people choose to do the work themselves to maximise profit.

So, have our buyers been getting stuck in, or just getting stuck?

Let's find out.

Back now to Croydon, south London,

where, earlier in the programme, Andy bought this imposing five-bedroomed property,

with a room in the attic, for 350,000.

He's a financial advisor. His wife, Jill, works part-time in a letting agency

and they have years of DIY experience.

We've developed our own properties for the last 25 years.

Our children have left home and we're on our own

so we're doing it ourselves as a mini business.

The couple plan to renovate the house and rent it out.

They were going to convert one bedroom to a second bathroom

and modify the attic room so it would pass building regulations

to be classed officially as the new fifth bedroom.

They were also going to decorate throughout.

Ten weeks later we met up with them to have a look around.

The outside looks better already.

It continues inside.

Neutral colour is very fashionable,

but that dated carpet's still there.

Happily, the floral look has been pruned elsewhere in the house.

Just look at the two bedrooms on the first floor.

The original bathroom on the first floor has lost the corner shower

but with this new large bath and contemporary floor and wall tiles

it's looking very smart.

And the dividing wall to the toilet has been moved just a little

to accommodate a basin.

Andy's installed that second bathroom on the floor above.

When you came last time, this room was a bedroom.

We had to get another bathroom in somewhere

so because this is above the existing bathroom, this was the ideal place to put it.

It's not finished yet, but now all the plumbing's in,

it's just a case of getting the tiler or myself to get it tiled

and it'll be a lovely bathroom. It's a nice big room.

It'll finish the house off nicely.

'A fabulous second bathroom.

'But does that mean they sacrificed a bedroom?

'Up one more flight of stairs to the second floor

'there are still two bedrooms.

'The front bedroom has laminate flooring and new windows.

'Bedroom four is at the back, overlooking the garden.

'The previous layout and access to the attic

'prevented it being counted as a bedroom.

'But with a reconfigured stairway, that's all been resolved.

'So there are still five bedrooms.

'Back on the ground floor, off the dining room,

'Andy has created a doorway from the conservatory through to the breakfast room.

'But it didn't stop there.'

We didn't really like the outlook of the conservatory,

so we took three of the windows out

and we got a bricklayer to build a brick wall in second-hand bricks.

That's all done now, but we propose painting it all white.

We've also done the floor in there as well because the floor was suspended

-and it was a bit bouncy.

-Very bouncy!

So we took that up and had that re-done in concrete with underfloor heating.

'What about the kitchen? Any changes there?'

The kitchen we've not altered an awful lot, really.

We've put an integrated washing machine in.

We've re-tiled the floor. It was lino before.

And in the breakfast room where we knocked through

we've reorganised the units and put some granite worktops in

and just redecorated.

We felt it didn't really need that much doing to it, not as a rental property.

'Outside has been sandstone rendered and the conservatory's been painted.

'While Jill's been decorating inside, Andy's been plumbing and knocking things down

'with help from a builder, plasterer and tiler

'plus a friend who's an electrician.

'So how much have they spent so far?'

The initial budget was £10,000 and we haven't quite spent that yet.

We've bought virtually everything, so there's not much else to spend the money on.

'They paid £350,000 at auction,

'so if they can keep to that £10,000 budget,

'it would bring their total investment here to 360,000.

'Time to hear if two local estate agents will reckon their efforts have paid off.'

The owners have certainly improved the house.

They've added an extra bathroom,

nice neutral decorations.

It's a real lettable house.

I think the kitchen is a lovely kitchen.

It's a very big kitchen. It speaks for the house. It's well done up.

I think for this size of house, it's definitely worth having an extra bathroom.

Otherwise people are fighting for the bathroom in the morning.

The bedroom sizes are great.

It will suit a large family, a big family.

It suits the area very well.

'So will the estate agents value it above the £360,000 invested here?'

For sale you'd be looking to achieve between £430,000 and £440,000.

We would expect this property to achieve

between 450,000 to £500,000.

'That valuation range would generate a gross profit

'of 70 to £140,000 before taxes and expenses.'

-Very good, yes.

-It's not bad, yeah.

-Yeah.

-Considering what we've spent so far.

-Yeah, that's good news. Good news.

-Very good.

'But their plan is to let the house.

'So what income could they expect?'

If you were to put the property on the market for rent, you'd be looking to achieve

between £1,600 per calendar month and £1,650 per calendar month.

We would market this property for rental at £1,600 per calendar month.

-That's a bit light.

-We're hoping for a bit more, really.

We're aiming to put it on at 1,800 with a view to hopefully getting 1,700.

'After years of renovating their own homes,

'Jill and Andy have embarked on this

'in the hope it would be a new direction for them.

'So will they be doing this again?'

-More than likely!

-Yeah, we've got it in our blood, haven't we?

Yeah, we've been playing with property for over 25 years now

so I don't suppose it's going to stop now!

Liskeard in Cornwall is one of the last remaining Cornish towns

that still has a weekly livestock market.

But it was a property auction that sold this two-bedroomed cottage

in the village of Quethiock, about four miles from Liskeard.

The new owners who paid 127,000 were John and Rhea,

who had headed west from London to retire in Cornwall a year earlier.

The couple were in rented accommodation until they found a house to make their home.

We wanted something that needed doing because if we moved into a prestigious house,

we'd change it anyway to how we liked it.

So we're starting with a blank canvas.

And Rhea had some sparkling interior design in mind.

-You're going to introduce sparkle?

-I'm introducing sparkle.

-Sparkle and twinkle!

I've picked out a work surface that sparkles. It's got glitter in it.

She chose that before we chose the house!

'John was going to do a lot of the work himself

'and get a builder to extend the first floor and add a third bedroom.

'It's now eight-and-a-half months later.

'The old lean-to that was falling off the wall

'has been replaced with this smart new conservatory.

'And replacement windows have been installed as well.

'Inside, there are signs of sparkle in the bathroom

'as Rhea explains.'

The bathroom, you might remember, was a beautiful shade of avocado.

So that all came out. We decided to put the bath upstairs and the shower down here.

Just brightened it up. Lots of white, lots of glitter and sparkle

with the tiles and the grout.

It's not quite finished. There's some chrome trimmings to go down the wall, around the ceiling and floor.

But other than that, I'm really pleased with it.

'But the bathroom is where the sparkle currently ends.

'Because while John and Rhea were waiting for the planning permission

'for their first floor dormer extension to be approved,

'they decided only to do the structural work downstairs.

'In the kitchen, the wall to the former pantry has been knocked down

'and the old units have been removed.

'It took three months for planning permission to be approved

'and, as John explains,

'the first floor of the cottage will change considerably.'

The plans are that you go up the stairs into a landing

with a window facing, to give more light at the top of the stairs.

On the right will be an en-suite bathroom for the bedroom

and on the left there will be a third bedroom.

The idea was that we'd have it done before moving in to the place.

But that didn't happen because of the time it's taken,

so we're in and it's become less of an urgent problem now.

'So far, John has done the majority of the work.

'But why the continued delay in starting the building programme upstairs?'

We've had some quotes from local builders

then we had a builder who was due to start but couldn't.

So we've kind of come to a full stop on that at the moment.

So we're looking for a new builder.

'This refurbishment seems to go one step forward

'and then two steps back.

'There are still final touches required in the conservatory.'

It's not quite finished. We've got some painting to do on the wall

and fill in the dimples left by the cavity wall guys!

And the floor is just a temporary covering.

That will come up, underfloor heating will go down

and some tiling put in here.

Then we'll finish it off with some nice blinds as well.

'Outside, Rhea's waiting till winter to clear the undergrowth

'so as not to disturb the birds.

'She'll then plant her almond tree.

'Her sparkling worktop is on hold as well

'but the new kitchen units and bath are already bought.

'So how much of their 25 to £30,000 budget have they spent so far?'

Well over half of that budget went onto the conservatory and the windows.

By the time we've done it,

it will be double the budget that we originally said.

'That projected £60,000 budget on top of the £127,000 they paid at auction

'will take their total investment here to £187,000.

'We invited two property experts

'to come and inspect it in its current state

'and give their opinions on the future prospects here.'

They've already made some major changes here

because the front porch was falling away from the property when we sold it to them.

They've also started in the bathroom and kitchen areas.

So already good improvements.

The quality of the bathroom is stunning. Lovely. Really nice.

They've obviously not skimped on anything.

So if they continue that through the property, it'll be very nice indeed.

'Once the third bedroom is added,

'the estate agents think the house could rent for between 650 and £675 per calendar month.'

It's something we never considered. We bought it to live in for ourselves,

not to move on and leave someone else living in it.

'But will the resale valuation leave them in hot water?

'Could the place be valued above the £187,000 that Rhea and John will have invested

'and what could it be worth if they carry out their plans

'to create the three bedrooms and an en-suite upstairs?'

If you were to keep it as a two-bedroom, you'd be looking at a value

of between 155 to £160,000.

If they were to complete the extension as they plan,

then we would look at a value of between 160 to £170,000.

I would value as a two-bed property

between 160,000 and £165,000.

If they were to convert it to a three bedroom,

I would be looking at £165,000 to £170,000.

'So no profit. In fact, a loss of between around 17 and £27,000.'

We're a little bit disappointed, really, aren't we?

I thought probably more than that.

But on the other hand, with the property market the way it is,

it's probably a fair reflection.

'Well, you have to admire Rhea and John's laid-back outlook.

'They seem resigned to this renovation taking just as long as it takes.

'I'm sure that eventually, Rhea will get all the sparkle she wants, though.

'So are they pleased they upped sticks and relocated to the south-west?'

Moving from London to Cornwall? Don't regret it for a second. Love it.

-Not at all.

-Life is totally different.

Just wouldn't think about going back.

Make sure you join us next time for more properties that sold under the hammer.

-Look forward to seeing you then. Goodbye!

-Goodbye!

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