Episode 7

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0:00:02 > 0:00:03Hello. Welcome to the show.

0:00:03 > 0:00:05We've both been dealing in property for many years now

0:00:05 > 0:00:08and have witnessed the fluctuations in the market.

0:00:08 > 0:00:12But through it all, we remain convinced of one thing.

0:00:12 > 0:00:15You can pick up some interesting buys at the auction.

0:00:39 > 0:00:45We've always been really excited by the concept of buying at auction.

0:00:45 > 0:00:48And it's true - the speed, the excitement

0:00:48 > 0:00:52and the chance for a real bargain make it a thing to try.

0:00:52 > 0:00:55So let's find out what got our buyers hot under the collar

0:00:55 > 0:00:57on today's show.

0:00:59 > 0:01:01This three-bed mid-terrace in Walthamstow

0:01:01 > 0:01:03needs a sorcerer's touch to shine.

0:01:03 > 0:01:06How are you going to work THAT into your budget?

0:01:06 > 0:01:09My husband, he knows some magics.

0:01:10 > 0:01:14And this barn in Cornwall, offers a touch of the tropical.

0:01:14 > 0:01:16You've even got your own palm trees.

0:01:16 > 0:01:20All I need now is a cocktail. Oh, thank you.

0:01:22 > 0:01:24These properties have been sold at auction.

0:01:24 > 0:01:27We find out who bought them and for how much

0:01:27 > 0:01:28when they went under the hammer.

0:01:34 > 0:01:36Well, I might be in east London today,

0:01:36 > 0:01:40but this feels more like a village than part of a big metropolis.

0:01:43 > 0:01:47Walthamstow's E17 postcode was once most famous

0:01:47 > 0:01:50for the name of a popular 1990s boyband

0:01:50 > 0:01:53with questionable taste in headgear.

0:01:53 > 0:01:56Now, however, it's a desirable location to live,

0:01:56 > 0:02:00with plenty of young families priced out of east and north London,

0:02:00 > 0:02:04heading over to take advantage of its burgeoning cafe culture

0:02:04 > 0:02:06and excellent tube links into town.

0:02:07 > 0:02:09# It's all right

0:02:09 > 0:02:11# It's all right

0:02:11 > 0:02:13# It's all right

0:02:13 > 0:02:15# It's really all right

0:02:15 > 0:02:17# It's all... #

0:02:17 > 0:02:20The property I'm here to see is more of a bus ride than a stroll

0:02:20 > 0:02:23to the tube, but it's in a more affordable

0:02:23 > 0:02:26part of the postcode. And I really like this little

0:02:26 > 0:02:30turn of the road which means you've got off-street parking here.

0:02:30 > 0:02:32The house itself is this three-bedroom terrace

0:02:32 > 0:02:36and it had a guide price of £190,000.

0:02:36 > 0:02:40And like this area, this 1950s, ex-local-authority property

0:02:40 > 0:02:41looks all right too.

0:02:41 > 0:02:43# ..It's all right

0:02:43 > 0:02:45# It's all right

0:02:45 > 0:02:47# It's all right... #

0:02:47 > 0:02:50Ooh, now, interestingly, you've got a lot of space outside,

0:02:50 > 0:02:54and you walk in, and it's a lot smaller than you would think.

0:02:54 > 0:02:58It certainly needs an overhaul. Very dated indeed.

0:02:58 > 0:03:00There's only one reception room on the downstairs floor

0:03:00 > 0:03:03and a kitchen, again very disappointing

0:03:03 > 0:03:07although it's quite a good size - almost the same size as next door.

0:03:07 > 0:03:09What's round here?

0:03:09 > 0:03:11Oh, we've got a downstairs bathroom.

0:03:11 > 0:03:16I'd like to think we could shift that upstairs and create more space.

0:03:16 > 0:03:20Therefore you would be able to have a little dining area around here.

0:03:20 > 0:03:23Hopefully, fingers crossed, we can do that.

0:03:23 > 0:03:24# With a little luck

0:03:24 > 0:03:26# With a little luck

0:03:26 > 0:03:28# We could shake it up

0:03:28 > 0:03:31# With a little luck

0:03:31 > 0:03:33# Oh, yeah... #

0:03:34 > 0:03:37So let's investigate up here.

0:03:37 > 0:03:39Well, there is a bedroom with a boiler there.

0:03:39 > 0:03:41I think I'd try and relocate that.

0:03:41 > 0:03:45Towards the back of the property here, yeah, a good-size double.

0:03:45 > 0:03:46A really nice room.

0:03:46 > 0:03:50And through here... Oh, oh, oh, oh. Yes, look.

0:03:50 > 0:03:53..it's a bathroom. THAT is really good news.

0:03:53 > 0:03:56And you can see all they've done is just pinched

0:03:56 > 0:03:58a little of the bedroom through here.

0:03:58 > 0:03:59I'm really pleased that's upstairs.

0:03:59 > 0:04:02That means downstairs, you can get rid of that bathroom

0:04:02 > 0:04:05and just completely go to town on that living space.

0:04:05 > 0:04:08Well, that's great news.

0:04:08 > 0:04:12The layout of the upstairs is just about an open-and-shut case.

0:04:12 > 0:04:14There's no need to really do anything

0:04:14 > 0:04:16other than upgrade and refurbish.

0:04:17 > 0:04:20Well, if ever there was a reason to buy a property,

0:04:20 > 0:04:22then this is it!

0:04:22 > 0:04:26Look at the size of the garden! It's overgrown, but it's massive.

0:04:27 > 0:04:31It's certainly enough space for an extension, should you want it.

0:04:31 > 0:04:34So with plenty of scope for improvement inside and out,

0:04:34 > 0:04:38it seems this house is brimming with possibilities.

0:04:38 > 0:04:40A local estate agent came along to tell us

0:04:40 > 0:04:45what she thought of this property - guided at £190,000.

0:04:46 > 0:04:49Keeping the existing layout to the first floor,

0:04:49 > 0:04:52I would value this property in the region of £270,000.

0:04:52 > 0:04:55By adding in a loft conversion to this property,

0:04:55 > 0:04:59I would estimate the value to be in the region of £285,000.

0:04:59 > 0:05:02By adding a rear extension to the property and a loft conversion,

0:05:02 > 0:05:05I would estimate the value to be in the region of £300,000.

0:05:05 > 0:05:08So after you've factored in build costs,

0:05:08 > 0:05:12neither extension would add greatly to your potential profit margin.

0:05:12 > 0:05:14It just makes a nice home to live in.

0:05:14 > 0:05:16But what about rental potential?

0:05:18 > 0:05:21The property with its current layout would rent

0:05:21 > 0:05:25in the region of £1,200 per calendar month.

0:05:25 > 0:05:28The property with an extended layout and a loft conversion would rent

0:05:28 > 0:05:31in the region of £1,300 to £1,400 per calendar month.

0:05:33 > 0:05:36So a good value family home in a decent area

0:05:36 > 0:05:40increasing in popularity, with an outstanding garden.

0:05:40 > 0:05:42Let's see who went for it at the auction.

0:05:45 > 0:05:50To lot 20. A three-bed, mid-terraced house

0:05:50 > 0:05:53not far from Walthamstow town.

0:05:53 > 0:05:55190 anywhere?

0:05:55 > 0:05:58190? 190 straightaway at the back.

0:05:58 > 0:06:00195.

0:06:00 > 0:06:04200. 205. 210.

0:06:05 > 0:06:07215. 220.

0:06:07 > 0:06:11225. 230. 235.

0:06:11 > 0:06:13240.

0:06:13 > 0:06:14241.

0:06:14 > 0:06:18242. 243?

0:06:18 > 0:06:19You must do.

0:06:19 > 0:06:21You'll regret it. 243?

0:06:21 > 0:06:25242, on my right at the back.

0:06:25 > 0:06:27243 elsewhere?

0:06:27 > 0:06:30If not, 242 first time. Second time.

0:06:32 > 0:06:35Third and last time. If you're all done...

0:06:35 > 0:06:37- GAVEL BANGS - Sold - 242 at the back. Well done.

0:06:37 > 0:06:41Wow! For £52,000 over the guide price,

0:06:41 > 0:06:46for £242,000, the new owners of the three-bed house in Walthamstow

0:06:46 > 0:06:49are married couple Kristina and Agris.

0:06:49 > 0:06:51Originally from Estonia, Agris is a plumber,

0:06:51 > 0:06:55and Kristina is a beauty therapist.

0:06:55 > 0:06:59While Agris kept an eye on Albert, I caught up with Kristina

0:06:59 > 0:07:02to find out about their plans for their new purchase.

0:07:02 > 0:07:04- Kristina, congratulations. - Thank you.

0:07:04 > 0:07:06So tell me all about the story,

0:07:06 > 0:07:09which has led you up to the sale of this property.

0:07:09 > 0:07:14We had another house which we refurbished. We sold it a year ago.

0:07:14 > 0:07:17So where have you been living for the last year,

0:07:17 > 0:07:18if you sold it a year ago?

0:07:18 > 0:07:22We are just renting at the moment. Just in the area.

0:07:22 > 0:07:26- So did you view this prior to auction?- We've seen it just once.

0:07:26 > 0:07:28In my mind, it was a bit different.

0:07:28 > 0:07:31Ah, so what's it like now you've seen it again?

0:07:31 > 0:07:33A little bit disappointed? Is it better than you expect?

0:07:33 > 0:07:38I'm happy that, for example, we can extend 6m

0:07:38 > 0:07:42on the ground floor of the house, because we have a very big garden.

0:07:42 > 0:07:45So we have this very good opportunity.

0:07:45 > 0:07:46Tell me what you'll do upstairs.

0:07:46 > 0:07:48How are you going to change the space?

0:07:48 > 0:07:50So basically we need one more room

0:07:50 > 0:07:53to make this house like a family house.

0:07:53 > 0:07:56So we're going to put it upstairs to the loft.

0:07:56 > 0:08:02And it's going to be a third room, like maybe a master bedroom upstairs.

0:08:02 > 0:08:05So what sort of budget are you looking at for the work?

0:08:05 > 0:08:08Oh, about 30 or 40.

0:08:08 > 0:08:1030 to 40,000?

0:08:10 > 0:08:12They're quite expensive, loft conversions.

0:08:12 > 0:08:16How are you going to work THAT into your budget?

0:08:16 > 0:08:19My husband he knows some magics.

0:08:19 > 0:08:21He knows some magics? I love that!

0:08:21 > 0:08:24So he's got some sneaky people in the trade that he knows a well.

0:08:24 > 0:08:26- Yeah.- That always helps.

0:08:26 > 0:08:27# Magic

0:08:27 > 0:08:30# It's a kind of magic... #

0:08:32 > 0:08:33LUCY CHUCKLES

0:08:33 > 0:08:36Magic Agris and his friends in the trade.

0:08:36 > 0:08:37Well, that makes the budget

0:08:37 > 0:08:40and the plans sound a little bit more feasible.

0:08:40 > 0:08:43They have a timescale of three to four months,

0:08:43 > 0:08:46during which Kristina might skip off back to Estonia

0:08:46 > 0:08:50with little Albert to escape the dust and the mess.

0:08:50 > 0:08:52Yes, sensible woman.

0:08:52 > 0:08:57I do have one worry, though - they did pay 52 grand over the guide price.

0:08:57 > 0:09:00Add another £40,000 for renovations.

0:09:00 > 0:09:06Well, then, that would make their total investment go up to £282,000!

0:09:06 > 0:09:08Kristina, it's been lovely meeting you.

0:09:08 > 0:09:10- Good luck with this project. - Thank you.- Thank you.

0:09:12 > 0:09:16So, a family home for Kristina, Agris and lovely little Albert.

0:09:16 > 0:09:18I am so pleased for them.

0:09:18 > 0:09:22And I'm sure they will turn it into a wonderful house.

0:09:22 > 0:09:24You can find out how it goes later in the show.

0:09:28 > 0:09:33Today, I'm in Cornwall in St Day, about two miles from Redruth,

0:09:33 > 0:09:37and what am I here to see? Well, it's a barn with land.

0:09:37 > 0:09:41How much do you think that will cost around here? 200,000, 150,000?

0:09:41 > 0:09:47Maybe 100,000? Nope, the guide price was 50,000 to 80,000 quid.

0:09:47 > 0:09:50St Day is a pretty little village,

0:09:50 > 0:09:54and the position behind the post office off the main street is handy.

0:09:54 > 0:09:59So, that guide price would be good for nearly any plot and barn.

0:10:00 > 0:10:05But this isn't just any old barn, it's a barn that comes

0:10:05 > 0:10:07with full planning permission

0:10:07 > 0:10:10for conversion into a two-bedroom dwelling.

0:10:10 > 0:10:13Now, around here, something like that's going to sell for around

0:10:13 > 0:10:15the £175,000-185,000 mark,

0:10:15 > 0:10:20so suddenly THIS could be a bit of a money-spinner.

0:10:24 > 0:10:27Well, at the moment, you'll have to use your imagination,

0:10:27 > 0:10:30because what you've basically got is a shell.

0:10:30 > 0:10:33But I love some of the original materials in here,

0:10:33 > 0:10:36some of this old wood - it'd be great to have that

0:10:36 > 0:10:39treated for woodworm or whatever, but keep it.

0:10:39 > 0:10:41Similarly with these beams and all this stone.

0:10:41 > 0:10:43The issues you're going to have?

0:10:43 > 0:10:46Damp proofing, both on the floor and the walls,

0:10:46 > 0:10:49services, such as electricity, gas, water.

0:10:49 > 0:10:52Then the actual structure of the building, what's that like?

0:10:52 > 0:10:54It seems pretty solid.

0:10:54 > 0:10:55It's going to take a bit of effort,

0:10:55 > 0:10:59but you could end up with something really, really special.

0:11:02 > 0:11:05There is a second floor I can't access today,

0:11:05 > 0:11:08so there's ample room for two bedrooms.

0:11:12 > 0:11:14But the fun doesn't there - through this little gate

0:11:14 > 0:11:16from the courtyard just in front of the barn here

0:11:16 > 0:11:20leads you through to this fairly sizable garden, so that's good news.

0:11:20 > 0:11:22It gets better, though, because there are two garages there

0:11:22 > 0:11:25and planning permission has been granted.

0:11:25 > 0:11:26It's only outline planning permission,

0:11:26 > 0:11:28but planning permission nevertheless,

0:11:28 > 0:11:30for the creation of another dwelling.

0:11:30 > 0:11:31So suddenly,

0:11:31 > 0:11:37this lot is looking incredibly potentially profitable indeed.

0:11:37 > 0:11:39You've even got your own palm trees.

0:11:39 > 0:11:41All I need now is a cocktail...

0:11:41 > 0:11:43Oh, thank you.

0:11:44 > 0:11:45(It's a milkshake.)

0:11:45 > 0:11:48..and Club Tropicana playing in the background.

0:11:48 > 0:11:49Perfect.

0:11:49 > 0:11:51MUSIC: "Club Tropicana" by Wham!

0:11:55 > 0:11:59Uh, before you go-go, it's reality check time.

0:11:59 > 0:12:02It's all very well, sipping cocktails on the Cornish Riviera.

0:12:02 > 0:12:05But they will have to wait.

0:12:05 > 0:12:09There are a few issues you would need to ponder, like access

0:12:09 > 0:12:12and getting building materials in, for one.

0:12:12 > 0:12:14And there may be a party wall issue to sort out.

0:12:14 > 0:12:18However, for a guide price of between £50,000-£80,000,

0:12:18 > 0:12:20I think it makes a really interesting lot.

0:12:20 > 0:12:24Does the agent who sold it rate the barn and the plans?

0:12:24 > 0:12:26Two-bedroomed properties in St Day

0:12:26 > 0:12:31will typically fetch between £165,000 and £185,000.

0:12:31 > 0:12:33For a property in reasonable spec, you could expect

0:12:33 > 0:12:38somewhere in the region of £750pcm for the rental.

0:12:38 > 0:12:41Let's see who went for this intriguing lot at the auction.

0:12:47 > 0:12:48Lot 76.

0:12:48 > 0:12:51Who's going to kick us off at 80? Straight in, 80?

0:12:51 > 0:12:54Bottom end of the guide, 50. Two.

0:12:54 > 0:12:5650, we're in. 50, we're away.

0:12:56 > 0:12:5952. 54.

0:12:59 > 0:13:0256. 58.

0:13:02 > 0:13:05And 60. And a half.

0:13:05 > 0:13:09And nine. And a half.

0:13:09 > 0:13:12And 60. And a half.

0:13:12 > 0:13:15And 61. And a half.

0:13:15 > 0:13:1862. 62 and a half - or is that 63?

0:13:18 > 0:13:2165 - straight in, 65. Burn you out completely.

0:13:21 > 0:13:25At 65. 65, you're in, sir. Yellow shirt has it. You're in.

0:13:25 > 0:13:27At 65 for the first time.

0:13:27 > 0:13:30At 65 for the second.

0:13:30 > 0:13:32At 65,000, third and final time.

0:13:32 > 0:13:35Selling to you, sir, yellow shirt, at 65,000...

0:13:35 > 0:13:37And out.

0:13:37 > 0:13:38Congratulations.

0:13:38 > 0:13:40That determined bidder who managed to get

0:13:40 > 0:13:43the property for £65,000 is Jeff,

0:13:43 > 0:13:45and Jeff may be more local than most

0:13:45 > 0:13:47because he owns the post office next door.

0:13:47 > 0:13:51- # Stop - Oh, yes, wait a minute, Mr Postman

0:13:51 > 0:13:55- # Wait - Wait, Mr Postman... #

0:14:02 > 0:14:05- Congratulations. - Thank you very much.

0:14:05 > 0:14:07Tell me why you wanted to buy this place, then?

0:14:07 > 0:14:11When my parents bought the property next door,

0:14:11 > 0:14:13back in the '70s,

0:14:13 > 0:14:16my father said, "What about the barn attached to it?"

0:14:16 > 0:14:19And they said, "Well, the local shop is using it,

0:14:19 > 0:14:22"so we can't include it with your deeds."

0:14:22 > 0:14:24So Father said, "Well, OK.

0:14:24 > 0:14:26"If anything comes of it in the future..."

0:14:26 > 0:14:32And over the years, we've still tried to buy it from previous owners,

0:14:32 > 0:14:34but the price was always too much.

0:14:34 > 0:14:37But it's just happened it's come at the right time.

0:14:37 > 0:14:41Jeff bided his time to get the barn, so presumably,

0:14:41 > 0:14:44he's had a long time to think about

0:14:44 > 0:14:46how he's going to put his stamp on it.

0:14:46 > 0:14:48But before we find out his plans...

0:14:48 > 0:14:50I've got to ask, what does your T-shirt mean?

0:14:50 > 0:14:52- "Cornishmen do it dreckley?"- Yeah.

0:14:52 > 0:14:55Well, it's a little bit slower than Spanish manana.

0:14:55 > 0:14:58It'll get done...eventually.

0:14:58 > 0:15:02But my wife has another phrase that she likes to put on the end -

0:15:02 > 0:15:05"Cornishmen do it dreckley, Cornishwomen want it done NOW."

0:15:05 > 0:15:07THEY LAUGH

0:15:07 > 0:15:09So it'll be interesting who gets their way.

0:15:09 > 0:15:10It certainly will.

0:15:10 > 0:15:12So, what are the plans?

0:15:12 > 0:15:16My mother-in-law thinks it would nice to have an artist's studio upstairs,

0:15:16 > 0:15:20and my wife was saying, "Why can't have we have a workshop downstairs

0:15:20 > 0:15:22"for a local business or something?"

0:15:22 > 0:15:27So I think, initially, we're going for putting the new roof on,

0:15:27 > 0:15:30altering the heights of these ceilings,

0:15:30 > 0:15:32so that there will be more room down here,

0:15:32 > 0:15:37- and then see what the funds will allow us to do in the future.- Right.

0:15:37 > 0:15:38That's this building here, then.

0:15:38 > 0:15:40What about the garages and the garden?

0:15:40 > 0:15:43- It's a nice little garden there, too, isn't there?- Yes.

0:15:43 > 0:15:45But there's a neighbour who wants to buy it,

0:15:45 > 0:15:48and he's got a couple of cars, that he can use the garages.

0:15:48 > 0:15:51So that would be an answer, really,

0:15:51 > 0:15:56to a big development happening in, really, a nice, small area.

0:15:56 > 0:15:58- So you might sell it?- Yes.- Right.

0:15:58 > 0:16:03Now, will you limit by putting a covenant on the sale,

0:16:03 > 0:16:07what that person can do with the bit of land and those garages?

0:16:07 > 0:16:09Would you stop them building that house?

0:16:09 > 0:16:11That might affect how much I'll get for it.

0:16:11 > 0:16:14It might, but on the other hand, if he ends up building houses there,

0:16:14 > 0:16:16- you're back to square one.- Yeah.

0:16:16 > 0:16:21I hope Jeff gives this a lot of thought and takes legal advice.

0:16:21 > 0:16:24But whatever happens to the plot and the barn, be it a gallery,

0:16:24 > 0:16:29workshop or a house, he's given himself 12 months to do the work.

0:16:29 > 0:16:31So talk me through the numbers, then.

0:16:31 > 0:16:34The whole lot cost us 65,000.

0:16:34 > 0:16:38Then I shall be spending a total of the same amount to do up this,

0:16:38 > 0:16:43- using the proceeds from the other side...- Right.- To do this one up.

0:16:43 > 0:16:46But I'm a bit confused, because you got pressure from the family

0:16:46 > 0:16:48to not convert it into something that people could live in.

0:16:48 > 0:16:52You're talking about working space, workshops and galleries.

0:16:52 > 0:16:54There's only the wife and the mother-in-law!

0:16:54 > 0:16:57Oh, OK, then. I'm sure you'll get away with it, then.

0:16:57 > 0:17:00But I might have to move in myself if they don't agree with it!

0:17:00 > 0:17:02Well, listen, congratulations.

0:17:02 > 0:17:07- Good luck with it, and I look forward to seeing how you get on. - Thank you very much.

0:17:07 > 0:17:11Well, it really was the obvious thing for Jeff to do,

0:17:11 > 0:17:13to buy this particular auction lot.

0:17:13 > 0:17:16I think he really would have regretted it had he not.

0:17:16 > 0:17:20Although I am a little bit concerned about selling off parts of it so soon,

0:17:20 > 0:17:23because once it's sold, you never know what somebody might do with it.

0:17:23 > 0:17:24And of course,

0:17:24 > 0:17:28there are the arguments that are in store between him and his family.

0:17:28 > 0:17:32How will it all turn out? You can find out later in the show.

0:17:35 > 0:17:38Renovating a property can be a very time-consuming undertaking.

0:17:38 > 0:17:41Especially if things don't go according to plan.

0:17:41 > 0:17:46So let's see if our buyers' dreams got off the drawing board.

0:17:46 > 0:17:50First, we're back in Walthamstow, east London,

0:17:50 > 0:17:52where, earlier in the programme, we met Kristina,

0:17:52 > 0:17:56her husband, Agris, and their little baby, Albert.

0:17:56 > 0:17:58The couple, originally from Estonia,

0:17:58 > 0:18:00had been living in rented accommodation

0:18:00 > 0:18:04after selling their previous house, and this ex-local-authority house

0:18:04 > 0:18:07is where they decided to create a new family home.

0:18:07 > 0:18:11They paid 242,000, which was a whopping 52 grand over

0:18:11 > 0:18:12the guide price.

0:18:12 > 0:18:15The three-bed house needed a lot of vision,

0:18:15 > 0:18:18but that is exactly what this couple have.

0:18:18 > 0:18:22They planned an extension into the huge garden and a loft conversion.

0:18:24 > 0:18:26We came back to see what they'd achieved

0:18:26 > 0:18:29just under five months later.

0:18:30 > 0:18:34And while the front doesn't look any different, just have a look inside.

0:18:40 > 0:18:44Firstly, the couple have taken advantage of that huge garden

0:18:44 > 0:18:49and conjured up this fantastic new kitchen-diner!

0:18:49 > 0:18:52They've also managed to turn that old downstairs bathroom

0:18:52 > 0:18:54into a stylish, new and lovely shower room.

0:18:57 > 0:19:01The dated lounge is now open and family-friendly.

0:19:01 > 0:19:04At the top of the house, a loft conversion means there is

0:19:04 > 0:19:07a lovely, airy, master bedroom.

0:19:09 > 0:19:14So, are they enjoying this fabulous new family home?

0:19:14 > 0:19:17Oh, it's amazing, because now we have

0:19:17 > 0:19:24just a lot of space for the baby as well to run around and a cat.

0:19:24 > 0:19:29It is also easier for me to cook and just to do some stuff.

0:19:30 > 0:19:33If the ground floor and new bedroom weren't spacious enough,

0:19:33 > 0:19:37they've also done a bit of rejigging on the first floor.

0:19:37 > 0:19:40They've turned the rear, smaller bedroom

0:19:40 > 0:19:42into a good-looking family bathroom.

0:19:42 > 0:19:46And the space once claimed by the old bathroom

0:19:46 > 0:19:48has been added to the front bedroom.

0:19:53 > 0:19:55With bedroom two also renovated,

0:19:55 > 0:19:59all these changes mean the house still has three bedrooms,

0:19:59 > 0:20:03but the flow and size of the rooms give the house an airy feel.

0:20:04 > 0:20:07Now the garden. Nice job!

0:20:07 > 0:20:12I personally was in a tent for a month, outside, in the garden!

0:20:12 > 0:20:16And another builder the same,

0:20:16 > 0:20:22but luckily, before the cold came, we already were ready to move in.

0:20:23 > 0:20:26As planned, Kristina and baby Albert

0:20:26 > 0:20:29hotfooted it to Estonia for a nice little break,

0:20:29 > 0:20:32so they did avoid the dust and the nights under canvas.

0:20:32 > 0:20:35Agris has certainly worked his magic on this place,

0:20:35 > 0:20:40but did he work the same trickery on his £30,000 to £40,000 budget?

0:20:40 > 0:20:46We spent around 35, we don't include my work -

0:20:46 > 0:20:49electrician, plumbing, every night supplying materials.

0:20:51 > 0:20:54If you add their 242,000 purchase price

0:20:54 > 0:20:57to that £35,000 refurbishment cost,

0:20:57 > 0:21:02it brings their total spend to 277,000.

0:21:02 > 0:21:05Now, I think they've done well to do so much for that budget.

0:21:05 > 0:21:09But what do two estate agents make of the couple's hard work?

0:21:09 > 0:21:11I would resell the property,

0:21:11 > 0:21:17the price in between £290,000 to £300,000.

0:21:17 > 0:21:22This property could resell for around £350,000 in its present state.

0:21:22 > 0:21:26These two very differing valuations mean that Agris and Kristina

0:21:26 > 0:21:30could make a possible pre-tax profit of between

0:21:30 > 0:21:34£13,000 to £73,000.

0:21:34 > 0:21:39We made this house for ourselves, so it's just great to know that

0:21:39 > 0:21:42we can sell with a profit,

0:21:42 > 0:21:46but now we will stay and live - how long, we don't know.

0:21:51 > 0:21:52Earlier we were in Cornwall

0:21:52 > 0:21:56and the little village of St Day near Redruth,

0:21:56 > 0:22:01where, tucked behind the main road, lay this exciting opportunity.

0:22:01 > 0:22:03It was this barn that came with planning permission

0:22:03 > 0:22:05for conversion into a two-bedroomed house,

0:22:05 > 0:22:09and with it the garages and land which also had permission for

0:22:09 > 0:22:12a separate house to be built.

0:22:12 > 0:22:15Getting this all for £65,000 was Jeff

0:22:15 > 0:22:20who also owns the property next door where he is the local postmaster.

0:22:20 > 0:22:23Jeff reckoned on a 12-month turnaround

0:22:23 > 0:22:26and a budget of £65,000 for the conversion.

0:22:26 > 0:22:30It was 18 months later that we returned to the barn.

0:22:30 > 0:22:32So, was it worth the wait?

0:22:33 > 0:22:37What a barnstorming transformation. The question is -

0:22:37 > 0:22:40after all the different ideas from Jeff, his wife

0:22:40 > 0:22:43and his wife's mother on what the barn should be converted into

0:22:43 > 0:22:48is it a gallery, is it a workshop, is it a home?

0:22:48 > 0:22:52Well, while the existing window has been filled in on the first floor,

0:22:52 > 0:22:55two new windows have been added giving a hint to the biggest

0:22:55 > 0:22:57change here.

0:22:57 > 0:22:59A great-looking kitchen/lounge.

0:23:00 > 0:23:05Well, upstairs was just a wide open space.

0:23:05 > 0:23:09And we've kept it like that, really, we put the kitchen in this side

0:23:09 > 0:23:12with a living accommodation over there

0:23:12 > 0:23:17and also we've got a lovely door leading to the steps,

0:23:17 > 0:23:19cos you can open it like a stable door,

0:23:19 > 0:23:24and I think that's the best thing about what's happened to the barn

0:23:24 > 0:23:28is the character and hopefully somebody will be happy

0:23:28 > 0:23:30to live here for the future.

0:23:30 > 0:23:34And with new granite steps leading up to the kitchen door this

0:23:34 > 0:23:38massive room really functions now as the main reception area

0:23:38 > 0:23:41but as you can guess from the layout so far Jeff has gone for the

0:23:41 > 0:23:44upside-down approach.

0:23:44 > 0:23:48Downstairs we've put the two bedrooms - this is

0:23:48 > 0:23:54a double bedroom. We've got the stairs in the centre

0:23:54 > 0:23:58and the other bedroom at the end underneath the kitchen.

0:23:58 > 0:24:02The main reason for that was that there isn't very much of a view

0:24:02 > 0:24:07and being downstairs they only use it to go to bed so you're

0:24:07 > 0:24:10pulling the curtains so it just makes sense that you aren't

0:24:10 > 0:24:14going to miss out on a view that you can get from upstairs.

0:24:16 > 0:24:19With the shower room also down here and with tenants lined up

0:24:19 > 0:24:23Jeff and his wife finally decided that letting the barn out for

0:24:23 > 0:24:27residential use was the best way for this place to pay for itself.

0:24:27 > 0:24:30But before Jeff could even start the renovation he needed to raise

0:24:30 > 0:24:32the money for the work.

0:24:32 > 0:24:34It's unfortunate I had to sell the garages

0:24:34 > 0:24:37and the land because that's a separate building.

0:24:37 > 0:24:41It had to go cos I couldn't afford to do this financially

0:24:41 > 0:24:43without selling on that part.

0:24:44 > 0:24:48It turned out that there was a hiccup with the existing plans.

0:24:48 > 0:24:51The barn was five feet shorter than the drawings indicated

0:24:51 > 0:24:55and then there were building regulations to contend with.

0:24:55 > 0:24:59Even though the walls are three-foot thick we still,

0:24:59 > 0:25:04because of new building regulations we had to put extra insulation on

0:25:04 > 0:25:05the inside.

0:25:05 > 0:25:09Which, of course, made the inside a little bit smaller again

0:25:09 > 0:25:12so we've had a few issues with the whole thing but, erm,

0:25:12 > 0:25:16very pleased with the way it's turned out so far.

0:25:16 > 0:25:20Jeff saved some valuable space by using underfloor heating

0:25:20 > 0:25:21instead of radiators.

0:25:21 > 0:25:25He used local builders to do the conversion, from installing

0:25:25 > 0:25:29a new roof to insulating the walls and everything in between.

0:25:29 > 0:25:33All told, after all the delays the actual renovation only

0:25:33 > 0:25:36took five months, but Jeff still feels he managed to live up

0:25:36 > 0:25:39to the dreckley motto.

0:25:39 > 0:25:43Yeah, I think when you go into building

0:25:43 > 0:25:49you need to build in an extra 10 to 20% of everything - time,

0:25:49 > 0:25:52materials and labour. I should have done that at the beginning really!

0:25:52 > 0:25:54HE CHUCKLES

0:25:54 > 0:25:57And when it comes to money, Jeff bought the barn, garages

0:25:57 > 0:25:59and land for £65,000,

0:25:59 > 0:26:04reckoning it would cost as much again to renovate just the barn.

0:26:04 > 0:26:07Well, he managed to get it done for £60,000,

0:26:07 > 0:26:11which would take his total spend to £125,000.

0:26:13 > 0:26:16Will the barn prove to be a good investment?

0:26:16 > 0:26:19Time to find out the thoughts of two local property experts

0:26:19 > 0:26:22and we start with the auctioneer who sold the property to Jeff.

0:26:26 > 0:26:28This property should achieve on the open market

0:26:28 > 0:26:32somewhere in the region of £160-165,000.

0:26:32 > 0:26:37I would market it at an asking price of £150,000

0:26:37 > 0:26:40with a view to achieving somewhere around the region of £145,000.

0:26:40 > 0:26:44I think that's amazing, really. I didn't think it was going to be

0:26:44 > 0:26:46anything like it.

0:26:46 > 0:26:50I thought it was going to be more 110 or 120.

0:26:50 > 0:26:53Well, no wonder he's happy because with those valuations

0:26:53 > 0:26:56selling the barn could give him a pre-tax profit of between

0:26:56 > 0:27:00£20,000 and £40,000. Of course, that's not taking into account

0:27:00 > 0:27:03what he made from the sale of the land.

0:27:03 > 0:27:05So, is it good news too on the rental figures?

0:27:05 > 0:27:08On the rental market the property could achieve

0:27:08 > 0:27:11somewhere in the region of £650 to £700 per calendar month.

0:27:11 > 0:27:15Approximately £650 per calendar month.

0:27:15 > 0:27:17I was thinking originally about 500.

0:27:17 > 0:27:21But 650 is, er, very nice.

0:27:21 > 0:27:24Well, Jeff already has tenants lined up, but if he went for those

0:27:24 > 0:27:27possible rental figures then he could achieve a healthy annual

0:27:27 > 0:27:29yield of between 6 and 7%.

0:27:31 > 0:27:34It may have taken longer than he'd thought to get to this stage

0:27:34 > 0:27:37but Jeff is pleased and proud of the final result.

0:27:37 > 0:27:41But was it enjoyable enough to make him contemplate another project?

0:27:41 > 0:27:44My wife and I haven't come to blows over it

0:27:44 > 0:27:47but we've had various discussions...

0:27:47 > 0:27:51Er, as to doing something else I think she's put the kibosh on that

0:27:51 > 0:27:52for the time being!

0:27:53 > 0:27:58Erm, I think this was a one-off, er...but we'll wait and see.

0:28:01 > 0:28:04Well, that's it for today's show but join us next time

0:28:04 > 0:28:07when we'll have more tales from the front line of property developing.

0:28:07 > 0:28:10So, make sure you join us then for more Homes Under The Hammer.

0:28:10 > 0:28:11Goodbye for now.