Episode 21 Homes Under the Hammer


Episode 21

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Transcript


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Hello, and welcome to the show. There are many different reasons

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-why people buy their homes under the hammer.

-It could be

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the speedy completion, the wide variety of properties on offer,

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or simply that you can just bag yourself a bargain.

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But whatever your motivation,

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the opportunity is there when you buy at auction.

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Now, the experience of going to an auction is like no other.

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The atmosphere can be really tense, with people buying a home they're desperate to live in,

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or a developer buying properties by the dozen to make a living.

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But when the hammer goes down, you are committed,

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and that is when the real work will begin.

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So what properties do we have lined up for you on today's show?

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First up, I'll be in Cornwall,

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revealing this cottage's secrets.

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You never know quite what to expect!

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I'll be in London, getting an eyeful of retro decoration.

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My, oh, my!

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Look at this wallpaper - wow!

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And fancy putting down roots in the West Midlands?

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Then this plot of land's blooming great.

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At least you know that if you're going to

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grow vegetables in your garden, they'll grow pretty well!

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All of these properties have been sold at auction.

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We'll find out who bought them and what they paid for them

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when they went under the hammer.

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Well done, you!

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I'm in deepest, greenest Cornwall,

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between Bodmin and Wadebridge,

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in a little hamlet called Washaway.

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Well, I don't know about washing away your blues,

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but if you had any washday blues,

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they wouldn't last long if you were surrounded by scenery like this.

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# Paradise... #

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The hamlet of Washaway consists of a few houses

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surrounded by beautiful Cornish countryside.

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The setting's a bit isolated,

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but very lovely.

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The property I'm here to see sounds absolutely charming on paper -

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a three-bedroom detached listed character cottage

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in over four acres of land.

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It looks fantastic! Let's have a look inside.

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It's gorgeous, but needs a lot of work

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and was guided at between £200,000 and £250,000.

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You never know quite what to expect!

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It looks a little bit, um...

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worn on the outside, and inside...

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er, yep...that definitely follows through.

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Obviously, it hasn't been lived in for some time.

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You've got the stone flagstone floors,

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you've got the low ceilings,

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you've got the solid walls -

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all things which equal quite a lot of expense when it comes to trying to sort them out.

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But also equal, at the same time, an immense amount of charm.

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I mean, look at it in here - this big old stove,

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and then at the back here,

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an old bread-baking oven. They call it a "clome oven" in Cornwall.

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You've got nice reveals on the windows.

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The old windows, obviously, probably fairly shot.

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You're going to have to replace those.

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It's Grade II listed, so you'll have to put wood back.

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Um, probably can't have double-glazed either.

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The floor is solid,

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they've probably got no damp-proof course,

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the walls will be solid - they won't have a damp-proof course either.

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Who cares?!

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# Falling in love Falling in love

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# Falling in love

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# With you... #

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I know, I know. I really should worry more

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about the cost of refurbishing this place.

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# Falling in love... #

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But I have fallen totally in love.

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And that's exactly the danger.

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And your buyer could easily blow their budget

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in the first five minutes.

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# Wise men say

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# Only fools rush in... #

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Another not-so-good feature is that the living room and second reception

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or dining room are separated by the kitchen.

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All lead through from each other

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and, yes, you've guessed it -

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the bathroom is at the back of the cottage

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behind the kitchen. Really not good.

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And while we're on plumbing matters,

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there are no mains sewers or mains water or electricity.

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# Falling in love with you... #

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Upstairs, the character, potential and problems are just as evident.

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Well, upstairs, a very traditional layout.

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Three bedrooms, basically the full width,

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front to back, of the property.

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And in a line, so you've got one bedroom over there,

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you've then got the stairs,

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into this room... And before I go any further,

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I've got to say - look at these amazing floorboards!

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In great condition,

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and how wide is that?

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I don't know - probably about 12 inches wide?

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Imagine those if they were stripped back.

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Absolutely superb.

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Um...

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But then, it's not ideal. It's though here into the third bedroom.

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So the only way to access this is by coming through that bedroom there.

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Not ideal at all,

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and I can't see an easy solution to it.

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Normally, I'd suggest putting a corridor in, but this is an absolutely ginormously thick wall,

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so you couldn't really get rid of that to open it up

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and I think you're pretty much going to have to...

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You have to live with it as it is.

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The cottage may be small inside,

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but the grounds are extensive,

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if very neglected.

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4.4 acres in total.

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Down across the lane, you have a paddock and outbuildings,

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and around the cottage, there's a jungle of a garden.

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All this was on offer

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for a guide price of between £200,000 and £250,000.

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So, you are fairly limited with the amount of accommodation here,

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so one thing you might want to consider is some kind of an extension.

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Now, anything you do, of course,

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is going to have to have that planning permission,

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even if it's within permitted development, because this is a listed building.

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You're going to have to go through the rigmarole,

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even if it was just a small extension.

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But if you wanted to do it, you've certainly got the space.

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Despite all the problems and issues here,

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could this cottage still be a profitable venture?

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We asked the auctioneer who sold it

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for his thoughts on it and its location.

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It is a cottage, and almost whatever you do to it,

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it's going to be a cottage.

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They'll let the new owner put an extension that is subservient

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but kind of looks like this.

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What a fantastic home it will be!

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It seems both of us are smitten.

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But we should bear in mind that it's Grade II listed,

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so a myriad of obstacles are involved.

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So is it worth the heartache that could lie ahead?

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If you just made the very best of what's here,

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you could probably push its value on towards 400.

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If you could extend it and make it four bedrooms,

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and an en suite and a bathroom upstairs,

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that land could push it on towards...

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£550,000, £600,000.

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For a buy-to-let investor,

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how much rental income could the cottage generate?

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If you turned it into what it actually could be,

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I think you'd be seeing over £1,000 per calendar month.

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Well, if this cottage was a prince,

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it would without doubt be...charming!

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Who couldn't possibly fall in love with this place?

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Of course, the reality is lots of work to be done

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and you're also battling against that Grade II listing,

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which is going to limit exactly what you can do.

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Or rather, you're just going to have to go about it through the right process.

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Still, it's one of those projects -

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who wouldn't want to take it on?

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

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A love affair with this cottage required patience,

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as it was the very last lot of the day.

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Charming detached cottage. Of course it needs a lot doing to it,

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but wow, what a home that is going to be for somebody.

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So, 200 I'll start us off at.

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Are you happy with it at 200? You ARE happy. 200 we've got.

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202.

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205. Fellas, I'm going to concentrate down here, for obvious reasons.

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205.

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208.

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210.

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2...12?

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212.

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215.

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218?

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218.

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Front row, 218. I'm going to drift back to this gentleman.

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220. 222.

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225?

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225. 228?

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228.

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230.

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230.

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232?

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At 232.

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2...35.

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235.

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238?

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238.

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240?

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240.

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242? Yeah?

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242.

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250.

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252.

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Oh, you surprise me!

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At 252 - is that enough for them to have the dream and you not?

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At 252.

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At 252, second time...

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At 252...

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the dream is going to the lady in the front.

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All done? Last chance at 252.

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Well done, you.

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252.

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And for £252,000,

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that very grateful and successful bidder was Vicky.

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She was accompanied by her builder friend, Neil,

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who will be the project manager on this cottage.

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Vicky's husband, Adrian,

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had to work on auction day, as he's a paramedic.

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Vicky runs a wedding dress shop.

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So why did the Cornish couple pick this particular property?

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I met Vicky, Adrian and their two dogs, Lara and Indy,

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back there to find out.

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-Adrian, Vicky, lovely to meet you both.

-Hiya.

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What a house - wow!

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Tell me why you wanted to buy it.

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I've known the house for about 20 years.

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Um...I ride past here on my horse,

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and knew the guy that used to live in here.

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And it came up for auction,

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so we thought we'd go for it.

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We'd been looking for somewhere in the country for five or six years, on and off,

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and then it just all came together nicely.

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-So where do you live at the moment?

-Bodmin, so not far.

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Just a normal house - detached, four-bedroom, normal, modern house!

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This is what we've always wanted, really.

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But we'd just gone for convenience.

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You know - kids at school, easy life.

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But now, something for us.

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-So is the idea, then - this is going to be your family home?

-Yeah.

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It's our forever home, once we move out here.

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# Ever and ever Forever and ever

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# You'll be the one... #

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This dream hasn't come easy.

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The couple have previously tried and failed to buy this cottage twice,

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once by tender and once at a local auction.

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So, third time lucky.

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Vicky and Adrian already have a small rental portfolio,

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but this is the first time they've tackled a Grade II listed building.

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I'm excited to hear more about their plans.

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Our first phase is just to renovate what's here.

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Make it habitable, make it warm.

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Then as money comes, we'll put an extension on.

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The roof will come off, felt it, the roof will go on.

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Lift all the floors, membranes down, damp-proofing,

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underfloor heating.

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And then, just make it good and solid.

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A kitchen might be nice, and maybe some windows.

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The windows will all come out,

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go and be restored, and they'll go back in.

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It's just repair and restore all that's there.

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-We love it as it is.

-Yeah.

-Literally.

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# I love you just the way you are... #

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Phase one is to make the house habitable,

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but the layout will pretty much remain as it is.

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No knocking-through of rooms.

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They estimate they'll be able to move in in eight months

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with their teenage son and daughter,

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before they attempt phase two - the extension.

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And what are the plans for the extension?

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Large, open-plan, slate floor, vaulted ceiling.

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-Central wood-burning stove.

-Wow!

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-Bi-fold doors.

-Bi-fold doors that will look out across the valley.

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How big?

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About the same size as this,

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but all built on the other end.

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Oh, gosh, wow! That sounds fantastic.

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-That's the plan, but...

-We'll see what they allow us.

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The money will come once we sell our place in Bodmin, and then go from there.

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In the meantime, what's the budget for the short term?

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-I've got £50,000.

-OK.

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I know it's Grade II listed, and that will disappear fairly quickly,

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-but we'll get as far as we can with that.

-You've obviously got four acres of land.

-Mmm.

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So...do you know where it is?!

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-Yeah, somewhere over there!

-Buried under brambles,

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bracken, um...

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goodness knows what else!

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-We know a nice man with a tractor.

-You do?

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So he'll come and sort it for us.

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So what's the plans for the land?

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We'd like to keep some chickens.

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My daughter quite fancies keeping a little bit of everything, really.

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-So...

-Goats and pigs?

-Couple of pigs.

-Llamas?

-She'd quite like alpacas.

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I was joking when I said llamas!

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We're already researching alpacas

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and, um...she quite fancies an alpaca or two, maybe.

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So it's going to be a bit of a menagerie, really.

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-But one that you're so excited to...

-Can't wait.

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-Can't wait.

-Dream home, innit?

-Yeah, definitely.

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-Definitely our dream home.

-Oh, that's lovely.

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-Congratulations to you both.

-Thank you.

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-Can't wait to see what you do to it.

-Thank you.

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-I'll come back to a zoo in the future!

-I think it will be.

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Well, for Adrian, Vicky and their family,

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this little cottage in Washaway is clearly a dream come true.

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But let's hope that the planning red tape

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doesn't stand in the way of turning this dream into a habitable reality.

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You can find out how they get on later in the show.

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# Well, everyone was inside, talking

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# In the cappuccino bar

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# Well, three cappuccinos and three croissants

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# Jonathan, Jonathan What do you want?

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# Well, not me... #

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I'm in Bowes Park in London,

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where I hope that great properties and relatively affordable prices

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mean you might be able to have your cupcake and eat it.

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A mile or so from extremely expensive Muswell Hill,

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and not far from fashionable Crouch End,

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this area has the fabulous Tube links those prime locations lack,

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without the horrendous property prices.

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And with Edwardian shopping streets like this one

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improving as we speak,

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I think it's clear it's certainly on the up.

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It all makes it an ideal hotspot

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if you want to make a property purchase in North London

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without having to stretch to the price tag of neighbouring areas.

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Five minutes is all it takes to walk to the Tube from here.

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And then it's under half an hour into Piccadilly Circus,

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so you can't complain about that for a commute to the shops!

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And the property itself? Well, it's this attractive two-bedroom terrace

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and it had a guide price of £240,000.

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Well, this house is already winning me over from what it looks like on the outside,

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but straight away, look - really, really springy floorboards.

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I think I'd get those looked at - may have a bit of woodworm,

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rotten joists - definitely worth getting a specialist in.

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My, oh, my!

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Look at this wallpaper - wow!

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Certainly dated.

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Lots of character. But a lovely little room there.

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You will need to replace the windows, cos they're fairly old.

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You've got the stairs, lots of orange...

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and the second reception room.

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I mean, it really is quite a cute little cottagey house.

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It's really lovely, but it needs everything doing.

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There's no central heating.

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You've got the kitchen through here.

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I would like to knock a big hole through there

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so you can see the garden.

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You've got the toilet there,

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literally in the kitchen.

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Not very hygienic - I think I'd like to change that.

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Lots to do, lots of money to spend on this place.

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But I do like it.

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# Counting flowers on the wall

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# That don't bother me at all

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# Playing solitaire till dawn With a deck of 51... #

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However, if the flowers on the wall do bother you,

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you've got your work cut out here.

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Out the back, the greenery is much more tasteful,

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and there's room to create a side return,

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subject to planning permission, of course.

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Because although there is plenty of living space downstairs for a two-bed terrace,

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I cannot get on board with the toilet being by the kitchen.

0:16:500:16:53

What space does upstairs have on offer?

0:16:550:16:57

Turn left and there's a very generous master bedroom

0:16:570:17:00

with more flowers.

0:17:000:17:02

To the right is the second bedroom.

0:17:030:17:06

Very interesting colour scheme,

0:17:060:17:08

but some amazing period features.

0:17:080:17:11

Look - beautiful fireplace.

0:17:110:17:12

Through here is the bathroom... No, it's not the bathroom.

0:17:120:17:16

It's just another room. There's not even a bathroom in the whole house!

0:17:160:17:20

But you have got a really nice little period fireplace in there.

0:17:200:17:22

So...what to do?

0:17:220:17:24

No bathroom.

0:17:240:17:25

Obviously, we'd like to bring one upstairs.

0:17:250:17:27

Bit of a problem with that,

0:17:270:17:29

because the stairs are running this way up.

0:17:290:17:32

In an ideal world,

0:17:320:17:34

if you could turn the stairs around, so they're running that way up,

0:17:340:17:37

you could then create a corridor along here,

0:17:370:17:40

which would give you instant access into the bathroom.

0:17:400:17:43

If you've got the dosh and you're going to stay here for long enough,

0:17:430:17:47

I would say that really is the preferred option.

0:17:470:17:51

I've seen it done before, and it's just so much better.

0:17:510:17:54

You're looking at well over £10,000 to move those stairs around -

0:17:540:17:57

admittedly, that's a lot of cash,

0:17:570:18:00

but I think having a bathroom off the bedroom

0:18:000:18:02

would make this place less attractive to the market.

0:18:020:18:05

So I do believe it would be worth doing.

0:18:050:18:07

We asked a local estate agent

0:18:090:18:11

if these options were the right ones for this house,

0:18:110:18:13

guided at £240,000.

0:18:130:18:15

It needs work, of course,

0:18:200:18:21

but it's perfect for somebody who wants to make a home.

0:18:210:18:23

The property probably would need to have the staircase moved, depending on the people's taste.

0:18:230:18:28

These sort of properties are in the hands of the owners

0:18:280:18:30

for at least four, five, six years.

0:18:300:18:32

Then they move on to the next level.

0:18:320:18:34

So it would definitely appeal to the young couples who are just about to get married, or married.

0:18:340:18:39

How does he reckon the numbers could work?

0:18:400:18:42

Once it's renovated to a really good standard,

0:18:420:18:45

it would be about £340,000 to £350,000 to sell.

0:18:450:18:49

And the rental?

0:18:490:18:51

Once this property has been fully refurbished,

0:18:510:18:53

we think we can achieve between £1,300 to £1,400 per calendar month.

0:18:530:18:56

Room for improvement? For sure.

0:18:570:19:00

Room for a bathroom?

0:19:000:19:01

I hope so.

0:19:010:19:03

Room for this lot to increase in value?

0:19:030:19:06

Yes - if bought for the right price, of course.

0:19:060:19:09

Let's find out what that price was at the auction.

0:19:090:19:12

Lot 90. Who's here for Bowes Park?

0:19:140:19:16

Got a bid down here.

0:19:180:19:19

250.

0:19:190:19:21

255.

0:19:210:19:22

260.

0:19:230:19:24

265.

0:19:240:19:26

And once they were off, there was no stopping them.

0:19:260:19:29

So we rejoin as the hammer was about to fall at £302,000.

0:19:290:19:34

302 first time...second time...

0:19:350:19:38

303, new spot.

0:19:380:19:40

304. 305.

0:19:400:19:42

306.

0:19:420:19:44

307.

0:19:450:19:46

308.

0:19:460:19:47

309.

0:19:490:19:50

310.

0:19:500:19:52

311, back in.

0:19:520:19:54

312?

0:19:540:19:56

311. With you, sir.

0:19:570:19:59

First time, second time...

0:19:590:20:01

third and last time.

0:20:010:20:02

Beating off his opponents with that knockout bid

0:20:050:20:07

of £311,000,

0:20:070:20:09

weighing in £71,000 over the guide price, was Stavros.

0:20:090:20:14

He took a ringside seat at the auction with his sister, Cleo.

0:20:150:20:18

Unfortunately, he couldn't meet with us,

0:20:180:20:20

but I'm now at the property with Cleo and her brother-in-law, Rory,

0:20:200:20:24

to find out why they thought this house packed a punch.

0:20:240:20:27

# The eye of the tiger... #

0:20:280:20:30

-Cleo, Rory, congratulations.

-Thank you.

0:20:320:20:35

This is a great house. I mean, it's really lovely. It's so pretty to look at.

0:20:350:20:39

But there's so much you can do with it.

0:20:390:20:41

I'm dying to find out what you want to do with this.

0:20:410:20:44

Initially, we obviously realise there's no plumbing,

0:20:440:20:47

pretty much no electricity running upstairs.

0:20:470:20:51

However, we did see the potential,

0:20:510:20:53

primarily being the location of the property,

0:20:530:20:55

being that there's a close Underground station, the rail station.

0:20:550:20:59

But initially, we were thinking about leaving it as a house.

0:20:590:21:02

But now we're thinking about two flats -

0:21:020:21:04

two one-bedroom flats.

0:21:040:21:06

-Really?!

-Yes.

0:21:060:21:07

That's interesting.

0:21:070:21:09

Now, is it anything to do with the fact that you've paid £311,000 at auction?

0:21:090:21:13

-Definitely!

-Has that got to do with the fact that you're now turning them into flats?

-Definitely.

0:21:130:21:17

Obviously, to recover the costs. Leaving it as a house wouldn't really bring that much of an investment in.

0:21:170:21:23

Two flats would kind of work.

0:21:230:21:25

It would be worth our while.

0:21:250:21:26

So, yeah, we are looking at doing that.

0:21:260:21:28

Obviously, given the planning permission from the council, that's what we're hoping to do.

0:21:280:21:33

How much research have you done?

0:21:330:21:34

Please tell me you've spoken to lots of people, lots of estate agents!

0:21:340:21:37

I have spoken to an estate agent,

0:21:370:21:39

and he did say if you could put the property into two flats,

0:21:390:21:42

it would be something that would be appealing to most people.

0:21:420:21:45

Obviously, having the Underground station just down the road

0:21:450:21:48

is one of the main reasons.

0:21:480:21:49

Just a step into central, being in Zone 3.

0:21:490:21:53

You have the railway station just down the road also,

0:21:530:21:55

so there's a lot of transport links.

0:21:550:21:58

But what about the fact you need planning permission?

0:21:580:22:01

Is the council in favour of converting houses into flats?

0:22:010:22:05

As we're aware, there is one house on the road which has been converted into flats.

0:22:050:22:09

So there is a strong possibility we'll be able to do that.

0:22:090:22:12

What happened on the day? Why did you pay £311,000 for this?

0:22:120:22:14

-I guess...

-You can blame her!

0:22:140:22:16

Yeah! You can get quite excited and carried away in auction,

0:22:160:22:20

-which is very true. I never believed it when people said that.

-Oh, yes!

0:22:200:22:23

# Because it's true what they say

0:22:230:22:26

# You know, it's true what they say... #

0:22:260:22:29

Well, Cleo and Stavros weren't the first and won't be the last

0:22:290:22:34

to be gripped by auction fever,

0:22:340:22:36

but they are also not alone

0:22:360:22:37

in tackling the turnaround of this two-bed.

0:22:370:22:40

So this is a family project. Tell me who's involved.

0:22:420:22:44

I'm involved, Rory, my brother-in-law,

0:22:440:22:46

and my actual brother and sister also in the project.

0:22:460:22:49

It's more from the basis that we're building a portfolio as a family together.

0:22:490:22:54

-But that's great, because you can all spread the workload.

-Absolutely.

0:22:540:22:57

That sounds like a great way to project-manage here,

0:22:570:23:01

as long as they can all agree.

0:23:010:23:03

But having worked in the family's fine foods business for several years,

0:23:040:23:08

hopefully, they're experts at the art of reaching a compromise.

0:23:080:23:11

That's something they'll need if they want to get planning permission

0:23:120:23:16

to turn this house into two flats.

0:23:160:23:18

Two flats! You've really thrown me there.

0:23:200:23:22

I actually thought family house -

0:23:220:23:24

a lot you could do with the upstairs.

0:23:240:23:26

Obviously, you'd need to get the bathroom up there,

0:23:260:23:29

-but you now don't have to go down that road.

-No.

0:23:290:23:31

It actually eliminates the problem upstairs with the...actually not having a corridor.

0:23:310:23:36

So it will be ideal turning the upstairs into a flat, really,

0:23:360:23:39

because we wouldn't actually have to structurally touch the property upstairs.

0:23:390:23:43

Obviously, downstairs, there is a bit of a problem,

0:23:430:23:46

being that it's a bit of an awkward layout with the stairs,

0:23:460:23:49

in the location where they are currently.

0:23:490:23:51

If we can keep the stairs there,

0:23:510:23:54

we will. We've got a really good architect, who's done loads of properties

0:23:540:23:58

and he was busy scratching his head!

0:23:580:24:00

The verdict seems to be

0:24:000:24:03

stairs being moved.

0:24:030:24:05

We want to avoid it, but if we have to go down that road, we're not scared to go down that...

0:24:050:24:09

So what's your budget to turn the place around?

0:24:090:24:12

Currently, we're on a very tight budget,

0:24:120:24:14

obviously, having spent more than we estimated.

0:24:140:24:16

It's £40,000.

0:24:160:24:18

-OK.

-But we'll see what happens as well.

-It's going to be challenging.

0:24:180:24:23

Um...and we have to be quite carful what we do

0:24:230:24:26

with furnishings and fittings.

0:24:260:24:29

Guys, tell me something - do you regret paying £311,000? In hindsight, would you do it again?

0:24:290:24:35

I would. Purely for the reason that I really am familiar with the area.

0:24:350:24:39

It's somewhere I am close to.

0:24:390:24:42

I can, as Rory said, jump in, pop in, see what's going on.

0:24:420:24:45

I know the ins and outs of schools.

0:24:450:24:48

I know what this area has to offer.

0:24:480:24:50

-And you are confident it's set to rise?

-It is.

0:24:500:24:53

-It definitely is.

-Guys, good luck with this project. I can't wait to see whether it's flats or a house

0:24:530:24:58

-and what you do with it.

-Thank you.

-That's great.

-Good luck.

0:24:580:25:00

-Thank you.

-Thank you.

0:25:000:25:02

I'm not surprised that they're planning to turn this house into flats

0:25:030:25:07

after paying over the odds at auction.

0:25:070:25:08

But I do think it's a shame to carve this lovely house up.

0:25:080:25:12

And the planning?

0:25:120:25:14

Could be tricky.

0:25:140:25:15

Find out how it all goes later on in the programme.

0:25:150:25:18

Coming up... You won't believe the number of properties

0:25:200:25:22

you can fit on this plot in Tipton in the West Midlands.

0:25:220:25:25

Ten houses?!

0:25:250:25:27

Wow!

0:25:270:25:28

There's no family feud here in London.

0:25:290:25:32

We've had to sit down weekly to discuss any differences we have

0:25:320:25:36

in terms of the property, but nothing of a problem, really.

0:25:360:25:39

But first, it's not been plain sailing in Cornwall.

0:25:400:25:43

The budget that we originally suggested

0:25:430:25:46

has been completely blown out of the water.

0:25:460:25:49

Now, back to the lovely little hamlet of Washaway in Cornwall.

0:25:520:25:56

# Where you planted roses

0:25:560:25:59

# The weeds seemed to say

0:25:590:26:02

# A cottage for sale... #

0:26:040:26:06

It was a Grade II listed property

0:26:060:26:08

with lots of land and lots of problems.

0:26:080:26:10

But it was a dream buy for husband and wife Vicky and Adrian,

0:26:100:26:14

who bought it for £252,000.

0:26:140:26:18

Vicky had had her eye on this three-bedroom cottage for some time.

0:26:180:26:22

I've known the house for about 20 years.

0:26:220:26:24

Um...I ride past here on my horse,

0:26:240:26:28

and knew the guy that used to live in here.

0:26:280:26:30

And it came up for auction, so we thought we'd go for it.

0:26:300:26:34

We'd been looking for somewhere in the country for five or six years, on and off,

0:26:340:26:38

and then it just all came together nicely.

0:26:380:26:40

-So is the idea, then - this is going to be your family home?

-Yeah.

0:26:400:26:44

It's our forever home, once we move out here.

0:26:440:26:46

Vicky owns a wedding dress shop, so knows all about making dreams come true.

0:26:460:26:51

They hoped it would take about eight months to make this place habitable

0:26:510:26:55

for the couple and their two teenagers.

0:26:550:26:57

They had an initial £50,000,

0:26:570:26:59

and hoped to extend the cottage eventually when the plans were approved.

0:26:590:27:04

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

0:27:050:27:09

The overgrown garden has been cleared right back.

0:27:090:27:12

Adrian had just finished a 12-hour night shift as a paramedic,

0:27:120:27:16

so it was Vicky we met back at the cottage.

0:27:160:27:18

Have the couple realised their dream?

0:27:180:27:21

Well, it certainly looks like it. The crumbling walls

0:27:210:27:23

and cracked floors have been lovingly restored.

0:27:230:27:26

And tasteful fixtures and fittings have been installed.

0:27:340:27:37

Probably the main thing in this room that you can't see

0:27:390:27:42

is the fact that the floor has had to come up.

0:27:420:27:44

It was laid on bare earth. All the slates had to be numbered,

0:27:440:27:47

so they had to go back in exactly the same place.

0:27:470:27:50

But then, before they went back,

0:27:500:27:51

we actually had to dig down nine inches

0:27:510:27:54

and put a damp-proof course and everything and bring it all back up again.

0:27:540:27:58

Other than that, we've replastered all the way round,

0:27:580:28:00

because the plaster was quite bad in here,

0:28:000:28:03

and also, just behind me, we have our new heating system.

0:28:030:28:06

The house has never had heat in its life before, so it's probably in shock now!

0:28:060:28:11

I'm sure it approves.

0:28:110:28:13

Up the steps at the back of the kitchen is the bathroom.

0:28:130:28:16

Their two dogs, Lara and Indy,

0:28:180:28:21

and their new companion, Wilma,

0:28:210:28:23

are loving the fire in the room beside the kitchen.

0:28:230:28:26

We've changed quite a bit in this room.

0:28:270:28:29

We've done a new floor in here,

0:28:290:28:31

we've had a new wood-burning stove.

0:28:310:28:33

Some of the walls have been replastered.

0:28:330:28:36

A lot of the woodwork has been stripped

0:28:360:28:38

and we've got some rather handsome-looking radiators as well.

0:28:380:28:41

Through this room into the second reception at the end of the cottage,

0:28:410:28:45

the restoration continues.

0:28:450:28:47

Upstairs, the layout hasn't changed.

0:28:490:28:52

their daughter will be in bedroom one, to the right of the stairs.

0:28:520:28:56

And turning left leads to their son's room.

0:28:580:29:00

You still have to go through this room

0:29:000:29:03

to reach what will be Vicky and Adrian's bedroom.

0:29:030:29:06

It's not ideal, so what happened to the proposed extension?

0:29:080:29:12

We've got pre-planning approval.

0:29:120:29:14

So we don't have planning permission, but we do have planning approval.

0:29:140:29:18

So the principle of what we want to add on is OK.

0:29:180:29:22

It's basically going to be one large entertaining space.

0:29:220:29:25

It's going to have a mezzanine floor

0:29:250:29:26

and, hopefully, will incorporate the store that's just to the right of the house,

0:29:260:29:30

that'll turn into another bedroom.

0:29:300:29:32

The extension has to be at the back of the house,

0:29:330:29:36

because due to Grade II listing,

0:29:360:29:38

the front elevation can't be changed at all.

0:29:380:29:40

And getting approval for the work INSIDE the cottage

0:29:420:29:44

was very time-consuming.

0:29:440:29:46

The sash windows have been restored and refitted.

0:29:460:29:50

Doors, hand-stripped and rehung,

0:29:500:29:52

and using traditional lime plaster takes a lot longer.

0:29:520:29:56

Adrian, Vicky and their builder, Neil, have only been working here

0:29:560:30:01

for the last four to five months.

0:30:010:30:02

Have they managed to stick to their budget?

0:30:020:30:05

The budget we originally suggested, which was around £50,000,

0:30:050:30:09

has completely been blown out of the water.

0:30:090:30:12

What we've spent so far is probably

0:30:120:30:14

slightly more than double what our original budget was.

0:30:140:30:17

With the £252,000 they paid at auction,

0:30:170:30:20

that takes their total investment to £352,000.

0:30:200:30:24

They've already sold their home in Bodmin,

0:30:240:30:27

so have been living in rented accommodation

0:30:270:30:29

and will finally move in here in a couple of weeks.

0:30:290:30:31

We invited two property experts to the cottage

0:30:340:30:36

to hear their opinions of the restoration

0:30:360:30:38

of this Grade II listed property.

0:30:380:30:40

First, the auctioneer who sold it.

0:30:400:30:43

It's a lovely quaint cottage, and they've maintained that throughout.

0:30:430:30:46

And that's actually its charm.

0:30:460:30:49

They don't build them like this any more.

0:30:490:30:51

So, to retain them is a job worth doing.

0:30:510:30:55

I think it's a beautiful cottage.

0:30:550:30:57

It's striking when you come up the drive towards it.

0:30:570:30:59

There's natural stone, a lovely slate roof.

0:30:590:31:01

I think it looks amazing.

0:31:010:31:04

The couple have no intention of letting it,

0:31:040:31:06

although the experts suggest the cottage could achieve

0:31:060:31:09

between £750 and £1,000 per calendar month,

0:31:090:31:12

giving a yield of 2.5 to 3%.

0:31:120:31:15

But what about the resale values?

0:31:160:31:18

So far, they have £352,000 invested here.

0:31:180:31:22

If they make the very best of the cottage as we see it today,

0:31:240:31:28

I can see the property on the market

0:31:280:31:30

at around £375,000.

0:31:300:31:33

If they put the extension on

0:31:330:31:35

and create at least one major big master bedroom space,

0:31:350:31:39

I would suggest around £450,000.

0:31:390:31:42

If they sell the property in its current configuration, finished,

0:31:420:31:45

I would recommend asking around £375,000.

0:31:450:31:48

If they add the extension,

0:31:480:31:50

I would say approximately £450,000.

0:31:500:31:53

So both experts agree - £375,000 without the extension.

0:31:540:31:59

That means there could currently be a profit of £23,000

0:31:590:32:04

before tax and expenses.

0:32:040:32:06

So, plenty to cover the build costs.

0:32:060:32:08

I'd probably say the 375.

0:32:080:32:11

Yeah, it would just about...round about there with what we've done.

0:32:110:32:14

Um...and I expected the fact that once we'd got the extension on,

0:32:140:32:18

that's where we could probably make a decent amount of money.

0:32:180:32:21

But it never was meant to be making money.

0:32:210:32:23

It was always to be a forever home,

0:32:230:32:25

so that's what it's going to be.

0:32:250:32:27

This is the Black Country Living Museum in Dudley.

0:32:340:32:36

It's a fascinating recreation of life in the West Midlands

0:32:380:32:41

in its heyday as an industrial powerhouse.

0:32:410:32:44

That said, the lot I'm here to see in nearby Tipton

0:32:440:32:48

appears to owe more to a rural past than an industrial one.

0:32:480:32:53

It's at the end of a row of industrial units,

0:32:530:32:55

but the plot of land that was up for auction is...

0:32:550:32:58

well, this forest!

0:32:580:33:01

It's here, at a guide price of £98,000 to £103,000.

0:33:030:33:08

Let's go and explore.

0:33:080:33:09

The plot is described as "virgin ground".

0:33:140:33:17

It's never been built on,

0:33:170:33:19

which should mean that under all this greenery,

0:33:190:33:21

there's something of a blank canvas.

0:33:210:33:24

So, what are the first impressions?

0:33:270:33:29

Well, access won't be a problem,

0:33:290:33:31

because the site's situated on the junction of two roads,

0:33:310:33:34

so all your building materials and things will be easily brought in.

0:33:340:33:37

And when you come to develop, easy access for the properties themselves.

0:33:370:33:41

Also, you're likely to have services nearby -

0:33:410:33:44

electricity, gas, sewerage, that kind of stuff.

0:33:440:33:47

It's actually 0.64 acres,

0:33:470:33:51

which is a fairly good size.

0:33:510:33:52

You should be able to get a fair number of houses on there.

0:33:520:33:55

It doesn't have planning permission as yet,

0:33:550:33:57

but what it does have is approval for development,

0:33:570:34:00

and a provisional layout for ten houses

0:34:000:34:03

has been agreed in principle.

0:34:030:34:05

Ten houses?!

0:34:050:34:07

Wow!

0:34:070:34:08

Move over, Indiana Jones - I'm going in!

0:34:110:34:14

Now, you must bear in mind that the council has only given approval

0:34:180:34:22

for development for this site,

0:34:220:34:24

not planning permission or even provisional planning.

0:34:240:34:26

So it doesn't guarantee anything,

0:34:260:34:28

but it does give reassurance

0:34:280:34:30

that the council want to see the land developed in some way.

0:34:300:34:33

Well, as you can see,

0:34:350:34:37

the site is currently a bit of a jungle.

0:34:370:34:39

But unless whoever bought it is into their nature stuff,

0:34:390:34:43

they probably want to clear this, don't they?

0:34:430:34:47

It's going to take a while just to get the site actually cleared.

0:34:470:34:51

Oh, well.

0:34:510:34:52

At least you know that if you're going to

0:34:520:34:55

grow vegetables in your garden, they'll grow pretty well!

0:34:550:34:58

This greenery's all well and good,

0:35:010:35:03

but it does make gauging the size of the plot tricky.

0:35:030:35:07

On paper, ten three- or four-bedroom homes

0:35:070:35:09

on a 0.64-acre plot

0:35:090:35:12

does sound a bit tight to me,

0:35:120:35:15

but it would be do-able.

0:35:150:35:16

But is that necessarily the way forward for this bit of land?

0:35:160:35:20

So, what are you going to do with the plot?

0:35:220:35:25

Should you build? Well, we all know these are difficult times in the property market.

0:35:250:35:28

People can't get mortgages. First-time buyers are finding it incredibly difficult.

0:35:280:35:33

Well, here's a clue as to what should be done with the plot.

0:35:330:35:36

Because right opposite, there is this - a brand-new development

0:35:360:35:39

of 87 properties.

0:35:390:35:41

So somebody obviously thinks the area is good and there is demand.

0:35:410:35:44

So is that good news?

0:35:440:35:46

Well, on the one hand, it certainly brightens up the area

0:35:460:35:49

and, as I said, they think there's a demand,

0:35:490:35:52

so you can read into that what you like.

0:35:520:35:54

The bad news is, of course, that could be potentially competition.

0:35:540:35:58

And it's much bigger in terms of a development than this,

0:35:580:36:02

even if you built the maximum ten properties.

0:36:020:36:04

The worst-case scenario is that those properties don't sell.

0:36:040:36:08

And no developer wants that.

0:36:080:36:09

But as they say, you've got to speculate to accumulate.

0:36:110:36:15

And if you're happy to be David to Goliath next door,

0:36:150:36:18

I think there's a good chance of making money,

0:36:180:36:21

if you can put up those eight three-bed

0:36:210:36:23

and two four-bed homes on the site.

0:36:230:36:26

We asked a local estate agent to tell us

0:36:310:36:33

what he makes of the prospects of the plot

0:36:330:36:35

and its guide price of £98,000 to £103,000.

0:36:350:36:38

The market for

0:36:390:36:41

private owner-occupation properties around here

0:36:410:36:44

is struggling for people to get mortgages.

0:36:440:36:46

And until that changes,

0:36:460:36:48

that's going to be difficult,

0:36:480:36:50

so you're probably looking more at the rental market.

0:36:500:36:53

You certainly need to build with both in mind.

0:36:530:36:55

Fair enough. So if a developer were looking to sell the finished properties on,

0:36:570:37:01

what kind of resale values might be achievable here?

0:37:010:37:04

Three-bedroom semi-detached houses around here,

0:37:070:37:10

you are looking in the order of £115,000, £120,000.

0:37:100:37:14

Possibly up to £125,000.

0:37:140:37:17

Four-bedroom houses,

0:37:170:37:19

you might get £130,000.

0:37:190:37:21

Maybe £135,000, but not much more than that.

0:37:210:37:24

Don't forget, we're talking about eight three-beds and four two-beds here.

0:37:260:37:30

So you could be looking at

0:37:300:37:32

over £1,000,000-worth of property on the site.

0:37:320:37:35

But what about putting the completed houses on the rental market?

0:37:350:37:40

For a three-bed house, you're probably looking at about

0:37:410:37:44

£525 per calendar month.

0:37:440:37:46

Four-bedroom house, probably up to £550 per calendar month.

0:37:460:37:50

Well, the Black Country's future is looking ever brighter,

0:37:520:37:56

and this auction lot provides the opportunity

0:37:560:37:58

to regenerate a forgotten piece of land

0:37:580:38:00

and potentially make some good profits into the bargain.

0:38:000:38:04

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

0:38:040:38:07

Our next lot is lot 23.

0:38:070:38:09

At £50,000 to get it started.

0:38:090:38:12

At 50 I have, and thank you. Do I have 75?

0:38:120:38:15

I do. At 80 I'm bid.

0:38:150:38:17

Is it 85, then? At 85 I'm bid.

0:38:170:38:19

Is it 90? At 90.

0:38:190:38:21

Is that 92? 92.

0:38:210:38:23

94.

0:38:230:38:25

96, is it? 95.

0:38:250:38:26

96.

0:38:260:38:28

96. 97, gents?

0:38:280:38:30

97. 98?

0:38:300:38:32

98. Is it 99, gentlemen?

0:38:330:38:35

99. Is it 100?

0:38:350:38:37

99 and a half.

0:38:370:38:39

99 and a half. Just another 500 if you feel...

0:38:390:38:42

Thank you. £100,000 I'm bid.

0:38:420:38:44

On sale, gentlemen, once...

0:38:440:38:46

Are we all done?

0:38:460:38:47

Twice...third and last time at £100,000...

0:38:470:38:51

Sold. Gentlemen, that is yours. Well done.

0:38:520:38:54

That successful bid of £100,000

0:38:560:38:58

was made by local developer Trevor.

0:38:580:39:01

He's built 19 properties so far -

0:39:010:39:04

everything from flats to detached houses.

0:39:040:39:07

-Trevor, really good to meet you.

-How you doing?

-Congratulations.

0:39:080:39:11

-You bought yourself a forest!

-Yes, that's right, yes.

0:39:110:39:14

What was it about it that you thought makes it a viable proposition?

0:39:140:39:19

Well, the real reason was...

0:39:190:39:21

I probably wouldn't have bought it

0:39:210:39:23

if it wasn't for the new development being built on the other side.

0:39:230:39:27

Sandwell Council obviously sold this.

0:39:270:39:29

They done a planning statement

0:39:290:39:31

to obviously put residential on this piece of land,

0:39:310:39:34

so that's the real reason why I've bought it.

0:39:340:39:36

So although it hasn't got planning permission,

0:39:360:39:39

it's got a pretty big indication that planning permission will be approved?

0:39:390:39:42

Yeah, it shouldn't be a problem, you know. Fingers crossed, anyway.

0:39:420:39:46

Tell me a bit more about your experience.

0:39:460:39:48

I'm an electrician by trade,

0:39:480:39:50

but up until four years ago, I decided that

0:39:500:39:53

I'd had enough doing electrics.

0:39:530:39:55

Even though it was a job I enjoyed,

0:39:550:39:56

I thought I'd try something different, you know.

0:39:560:39:59

-So I took it on and actually bought a piece of land in the same street.

-As this?

-Further down.

0:39:590:40:04

-And I built nine apartments.

-Oh, right.

0:40:040:40:06

So, got lucky - I built them all, no problems at all, sold them.

0:40:060:40:09

Obviously, in between selling them, I've got another piece of land to build some starter homes,

0:40:090:40:14

which I finished in October of 2010.

0:40:140:40:17

All sold. And obviously, looking for another piece of land,

0:40:170:40:20

and this come along and that was it.

0:40:200:40:23

So what are you actually going to build on here?

0:40:230:40:25

Well, the plan is to build ten houses.

0:40:250:40:27

Eight three-bed houses,

0:40:270:40:30

and two two-and-a-half-storey,

0:40:300:40:31

which is like three/four-bed houses.

0:40:310:40:34

So, I'm looking at a build cost of about £625,000.

0:40:340:40:39

And do you have any idea of what the resale value of the whole development might be?

0:40:390:40:42

The resale of the whole development, I'm looking at a GDV of about £1.4 million.

0:40:420:40:47

OK, so 625 to build them, plus...

0:40:470:40:49

-Plus my 100 for the land.

-Right, 725.

0:40:490:40:52

1.4 to sell them, plus sales costs and stuff.

0:40:520:40:55

Yeah, that's all tied up with it.

0:40:550:40:56

I'm looking probably to fetch back about £700,000 on this piece of land.

0:40:560:41:00

Gosh! Wow!

0:41:000:41:02

It's just luck of the draw, in't it? You know.

0:41:020:41:04

I think we could all do with a bit of Trevor's particular brand of luck.

0:41:080:41:12

A potential £700,000-worth of profit from a small field of trees

0:41:120:41:17

is not to be sniffed at.

0:41:170:41:19

What are the hurdles in between now

0:41:210:41:23

and you being three-quarters of a million quid better off?

0:41:230:41:25

The main plan is now get planning permission.

0:41:250:41:28

I've also actually got, er... a six-inch...

0:41:280:41:32

pipe running diagonally through the land.

0:41:320:41:35

-What kind of pipe?

-It's a sewage pipe.

0:41:350:41:38

Obviously, my plan is to redirect it round the boundary of the site.

0:41:380:41:43

-Expensive?

-Not necessarily.

0:41:430:41:45

I feel I can get permission from Severn Trent to do the works.

0:41:450:41:48

And then obviously get my own ground-workers to do the job for me.

0:41:480:41:52

But once I'm out of the ground,

0:41:520:41:54

it's straightforward, yeah.

0:41:540:41:57

# I got a peaceful easy feeling

0:41:570:42:02

# And I know you won't let me down

0:42:040:42:10

# Cos I'm already standing

0:42:100:42:15

# On the ground. #

0:42:170:42:19

There is something rather beguiling about Trevor's outlook.

0:42:210:42:24

He makes the whole idea of spending almost three-quarters of a million pounds here

0:42:240:42:29

to make the same amount back in profit

0:42:290:42:31

sound like a walk in the park.

0:42:310:42:33

But will he be as laid-back when it comes to his timescale?

0:42:330:42:37

I want to work on a 12-month period.

0:42:390:42:41

But I think this time I'm going to try and use a lot more blokes

0:42:410:42:45

to get specific jobs done quicker,

0:42:450:42:47

so I can try and turn it round quicker.

0:42:470:42:49

And try and hit the best time of year to obviously sell the houses.

0:42:490:42:53

Sell them on. And the biggest challenges you face?

0:42:530:42:56

None, really.

0:42:570:42:59

I don't... I'm not worried about it, you know. Just get on with it.

0:42:590:43:02

-You've got a lovely laid-back, confident attitude.

-That's right.

0:43:020:43:05

Well, if people say to me, "Do you sleep at night?"

0:43:050:43:07

I say, "I sleep lovely."

0:43:070:43:08

It's life, innit? It's not everyone else's cup of tea, is it?

0:43:080:43:11

I love the challenge.

0:43:110:43:13

Great. Well, it seems this is going pretty well so far. We wish you continued success,

0:43:130:43:17

-and look forward to seeing how you get on.

-Thank you.

0:43:170:43:19

Well, I love Trevor's laid-back attitude.

0:43:200:43:22

I don't know too many people who'd be quite so cool when it comes to spending £625,000.

0:43:220:43:27

But it could have something to do with the fact that

0:43:270:43:29

he's on-line for a nearly three-quarters-of-a-million pounds' profit

0:43:290:43:34

before tax and the usual stuff.

0:43:340:43:36

Still, a few more hurdles to cross before he gets to that point,

0:43:360:43:39

and nothing ever goes quite to plan when it comes to building and developing.

0:43:390:43:43

How will he get on? You can find out later in the show.

0:43:430:43:46

Well, Martin, we've given them a while,

0:43:490:43:51

-but was it long enough?

-Will we return to see success,

0:43:510:43:55

or stress and spiralling budgets?

0:43:550:43:58

Let's find out.

0:43:580:43:59

Back now to Bowes Park in London.

0:44:030:44:04

Stavros and his sister, Cleo,

0:44:070:44:08

bought this two-bedroom mid-terrace during a spot of auction fever

0:44:080:44:12

for £311,000.

0:44:120:44:14

The mid-terrace sported psychedelic wallpaper, a dodgy layout

0:44:180:44:22

and no bathroom.

0:44:220:44:24

There was a real family thing going on here

0:44:240:44:26

as Stavros and Cleo's sister, Marie, was also in on the purchase.

0:44:260:44:30

But it was Cleo and Marie's husband, Rory -

0:44:300:44:33

I hope you're getting all this! -

0:44:330:44:35

who I met to discuss their collective plans.

0:44:350:44:37

Initially, we were thinking about leaving it as a house.

0:44:400:44:42

But now we're thinking about two flats -

0:44:420:44:45

two one-bedroom flats.

0:44:450:44:46

-Really?!

-Yes.

0:44:460:44:48

That's interesting.

0:44:480:44:49

Now, is it anything to do with the fact that you've paid £311,000 at auction?

0:44:490:44:54

-Definitely!

-Has that got to do with the fact that you're now turning them into flats?

-Definitely.

0:44:540:44:58

In order to regain some ground lost by their over-enthusiastic bidding,

0:44:580:45:03

the idea was to get planning permission and then spend three months and 40 grand

0:45:030:45:07

turning the place into two one-bedroom flats.

0:45:070:45:10

Five months after our first visit,

0:45:100:45:12

we're back to see how they've got on.

0:45:120:45:15

# Be a little bit wiser, baby

0:45:180:45:21

# Put it on Put it on

0:45:210:45:24

# Cos tonight

0:45:240:45:25

# Is the night

0:45:250:45:27

# When two become one... #

0:45:270:45:31

Er, well, no, actually, it would appear

0:45:340:45:36

the siblings backtracked on their plan to create two flats.

0:45:360:45:39

And while the work here is clearly not quite finished,

0:45:390:45:42

what IS clear is that there have been major alterations

0:45:420:45:46

since we were last here.

0:45:460:45:48

We did have an architect working with us.

0:45:500:45:52

He was on board - he's actually worked for the council before.

0:45:520:45:55

When he initially came into the property,

0:45:550:45:57

he did say that it was very unlikely that they'd grant us the permission,

0:45:570:46:00

being that it was too small for it to be granted for two flats.

0:46:000:46:04

So, he did offer us alternatives, such as leaving it as a house

0:46:040:46:07

or turning it into a four-bedroom bedsit.

0:46:070:46:09

Obviously, we preferred the latter,

0:46:090:46:11

being that it would bring us more return in the future as well.

0:46:110:46:14

So we decided to go with that.

0:46:140:46:15

That meant we didn't need the permission from the council -

0:46:150:46:18

we could just get on with it. So that's what we decided to do.

0:46:180:46:21

Aha!

0:46:220:46:24

So, renting to four people means that the old front living room

0:46:240:46:27

will be a bedroom.

0:46:270:46:29

The old dining room becomes the communal kitchen

0:46:300:46:33

and where the old kitchen and loo were,

0:46:330:46:35

there are now two bathrooms -

0:46:350:46:37

a great idea for a house of four sharers.

0:46:370:46:39

There are more big changes upstairs.

0:46:410:46:43

So here on the first floor, we've created a corridor,

0:46:450:46:47

which before was an existing wall. We've now put some spindles in,

0:46:470:46:50

allowing a corridor here, giving access to the back bedroom,

0:46:500:46:53

and also access to the middle room.

0:46:530:46:55

We've also now put a skylight in,

0:46:550:46:57

allowing more light into the actual corridor,

0:46:570:46:59

making it seem more spacious as well.

0:46:590:47:01

We've also kind of left the master bedroom as it was.

0:47:010:47:04

Really pleased with the layout. I think it really works well.

0:47:040:47:08

And it's been a great project to work on.

0:47:080:47:10

The upstairs layout does work much better now,

0:47:140:47:17

and while I appreciate that the groovy wallpaper had to go,

0:47:170:47:20

I think it's a real shame that the original fireplaces have gone too.

0:47:200:47:25

The outside has all been re-rendered,

0:47:260:47:28

but there's a bit of a tidy-up needed outside at the front.

0:47:280:47:32

However, the back garden will be a low-maintenance one.

0:47:320:47:35

But how has this family affair worked out,

0:47:370:47:39

with Cleo, her brother, their sister

0:47:390:47:42

and their brother-on-law all playing a part in the renovation?

0:47:420:47:46

Yeah, working with family - we're pretty much used to working together as a team,

0:47:470:47:51

so it hasn't been a big change for us.

0:47:510:47:53

The only thing is, we've had to sit down weekly to discuss any differences we have

0:47:530:47:58

in terms of the property,

0:47:580:48:00

but nothing of a problem, really. It's all come together quite well.

0:48:000:48:03

That's good to hear.

0:48:050:48:06

Getting building control approvals did take longer than they expected.

0:48:060:48:10

Even so, with just a few finishing touches

0:48:100:48:13

and a kitchen to finish installing,

0:48:130:48:16

they have more or less managed to keep to their three-month timescale.

0:48:160:48:19

But how have they fared on the budget front?

0:48:190:48:22

They planned to spend £40,000.

0:48:220:48:25

Until the furnishings have all gone in and the finished works...

0:48:270:48:30

Yeah, we do expect it will be £40,000 spent in total.

0:48:300:48:34

A spend of £40,000 will bring their total outlay here to £351,000.

0:48:360:48:41

We asked along two local estate agents,

0:48:420:48:44

including the one who saw the property before,

0:48:440:48:47

to hear their thoughts on this renovated mid-terrace.

0:48:470:48:50

It's very contemporary now,

0:48:530:48:55

very clean, obviously with everything brand-new.

0:48:550:48:57

Once it's finished, I'm sure it's going to look 100%.

0:48:570:49:01

I think the property is coming along very nicely.

0:49:010:49:04

There's a little bit of work still to be done,

0:49:040:49:06

but you can see you've got a nice kitchen,

0:49:060:49:08

two bathrooms.

0:49:080:49:09

The experts were pretty divided on the resale value of the property,

0:49:100:49:14

with valuations of between £350,000 and £395,000.

0:49:140:49:19

So for Cleo and Co, that would mean a loss of £1,000

0:49:190:49:23

or a decent profit of £44,000,

0:49:230:49:27

minus the usual taxes and expenses, of course.

0:49:270:49:30

But this was always a long-term investment for the siblings and brother-in-law.

0:49:300:49:34

So what do the experts think that letting the property could fetch?

0:49:340:49:38

If you were going to rent this out to sharers,

0:49:390:49:42

you could achieve £1,300 per calendar month.

0:49:420:49:45

If the property is rented out to four sharers,

0:49:450:49:48

then I think you could achieve in the region of £1,700 per calendar month.

0:49:480:49:52

Maybe slightly lower than I had expected.

0:49:520:49:54

We were looking around the £1,800 mark, being the minimum.

0:49:540:49:58

However, we can see it's something that obviously, until you've got it out on the market,

0:49:580:50:02

you don't really know what's going to happen.

0:50:020:50:04

And it is highly spec-ed, it's a new property,

0:50:040:50:06

so it's going to be probably quite favourable amongst the tenants, I imagine.

0:50:060:50:09

Here's hoping.

0:50:110:50:12

The estate agents' rental valuations

0:50:120:50:14

could mean a yield on this Bowes Park property of between 4% and 6%,

0:50:140:50:19

which is pretty respectable, really.

0:50:190:50:21

So what does the future hold for Cleo and her family

0:50:230:50:25

of budding property developers - beyond finishing this one off, that is?

0:50:250:50:29

The plan is to work on another project.

0:50:320:50:34

We've got our eye something else at the moment,

0:50:340:50:36

so fingers crossed that goes through.

0:50:360:50:38

But yes, you kind of build up on it every year.

0:50:380:50:40

Back now to Tipton in the West Midlands

0:50:450:50:47

and this 0.64-acre plot

0:50:470:50:50

with agreement in principle from the council

0:50:500:50:53

to build ten homes.

0:50:530:50:54

It was bought at auction for £100,000 by electrician

0:50:540:50:58

turned property developer Trevor.

0:50:580:51:00

He seemed unfazed by the enormity of the task ahead.

0:51:000:51:05

And the biggest challenges you face?

0:51:050:51:06

None, really.

0:51:060:51:08

I don't... I'm not worried about it, you know. Just get on with it.

0:51:080:51:11

-You've got a lovely laid-back, confident attitude.

-That's right.

0:51:110:51:14

Well, if people say to me, "Do you sleep at night?"

0:51:140:51:17

I say, "I sleep lovely."

0:51:170:51:18

It's life, innit? It's not everyone else's cup of tea, is it?

0:51:180:51:21

I love the challenge.

0:51:210:51:23

Trevor's plan was to clear the place,

0:51:240:51:26

then get full planning permission to build eight three-bed houses and two four-bed houses on the plot.

0:51:260:51:32

He aimed to turn the whole thing round in 15 months,

0:51:320:51:35

and his budget was a cool £625,000.

0:51:350:51:39

17 months after our first visit,

0:51:390:51:42

we're back to see how Trevor's got on.

0:51:420:51:45

# Keep on running

0:51:450:51:47

# Keep on hiding

0:51:490:51:51

# One fine day I'm going to be the one to make you understand

0:51:530:51:57

# Oh, yeah

0:51:570:51:59

# I'm going to be your man. #

0:51:590:52:01

It's still very much work in progress.

0:52:020:52:04

In Trevor's defence,

0:52:040:52:06

getting planning permission took much longer than anticipated,

0:52:060:52:09

and his team have only been on site for the last four months.

0:52:090:52:14

So, please, Trevor, remind us exactly what we're looking at here.

0:52:140:52:17

Well, my initial plan is to build...

0:52:190:52:21

We've got plots 1 and 2, which are both three-bed end semis.

0:52:210:52:25

We've got plots 3, 4 and 5,

0:52:250:52:28

which are also three-beds.

0:52:280:52:31

We've got plots 6, 7, 8 and 9.

0:52:310:52:35

6 and 9 are both three-bed end semis.

0:52:350:52:39

Plots 7 and 8 are two-and-a-half-storey four-beds.

0:52:390:52:43

And finally, we've got plot 10,

0:52:430:52:46

which is a three-bed detached house.

0:52:460:52:48

And that completes the site.

0:52:480:52:50

OK, so plots 1 to 5, all three-beds,

0:52:520:52:55

are the furthest on, and roofs will be going on them pretty soon.

0:52:550:52:59

The three-bed detached house is taking shape,

0:53:000:53:03

as is the block which will contain

0:53:030:53:06

the two three-beds and two four-beds.

0:53:060:53:08

Laid-back Trevor's only real concern

0:53:080:53:11

was a sewage pipe running across the site,

0:53:110:53:14

but that turned out to be easy enough to move.

0:53:140:53:16

Once planning was in place, he thought the work on site would take 12 months,

0:53:160:53:20

and in fact, he reckons his team are ahead of schedule at the moment.

0:53:200:53:24

But how is his planned £625,000 budget looking now?

0:53:240:53:29

The budget I'm working on is £572,000.

0:53:310:53:33

My main job was obviously shopping around, you know?

0:53:330:53:38

Like a woman when they go shopping - they go for bargains,

0:53:380:53:41

and I do the same in buying building materials.

0:53:410:53:44

Shopping around has certainly paid off for Trevor.

0:53:460:53:49

His revised budget of £572,000

0:53:490:53:52

is £53,000 lower than he'd anticipated.

0:53:520:53:56

If everything continues to go to plan,

0:53:560:53:59

he's on course for a total outlay here of £672,000.

0:53:590:54:03

We asked two local property experts

0:54:030:54:05

for their thoughts on the development so far.

0:54:050:54:08

They've made the best use of the space available,

0:54:120:54:15

in terms of...

0:54:150:54:17

house size and maximising the number they can get on the site.

0:54:170:54:21

In this area, people are looking for

0:54:210:54:23

the different style of properties, whether that's terraced, semis

0:54:230:54:26

and the detached. By incorporating all three on the same site,

0:54:260:54:28

is what I would have done myself.

0:54:280:54:31

Given that mixture of three-beds and four-beds,

0:54:330:54:35

the experts think that the ten properties here

0:54:350:54:39

could rent out for between £500 and £625 a month each,

0:54:390:54:42

which could give Trevor a rock-solid yield in the region of 10%.

0:54:420:54:47

But he's more interested in the resale valuations,

0:54:480:54:51

so how much could the five three-bed semis fetch on the market?

0:54:510:54:55

It would be between £115,000 and £120,000.

0:54:570:55:01

Three-bedroom semis in this area, again built to a good specification,

0:55:010:55:04

you'd be looking £115,000, £120,000.

0:55:040:55:07

And the two three-bed terraced properties would be worth slightly less.

0:55:070:55:11

What about the two four-bed terraced ones?

0:55:110:55:14

With the four-bed, you'd be looking about £125,000.

0:55:140:55:19

I would imagine that you'd probably be

0:55:190:55:22

something between £125,000 and £130,000.

0:55:220:55:25

And what about the three-bed detached house?

0:55:250:55:29

A three-bedroom detached house I would envisage to be

0:55:290:55:32

£135,000 or maybe a little more.

0:55:320:55:35

The detached property, you'd be looking at about £135,000 to £140,000.

0:55:350:55:40

OK, bear with me.

0:55:400:55:42

HE MUTTERS CALCULATIONS

0:55:420:55:44

Wow! Based on those valuations,

0:55:470:55:49

Trevor could be looking at a total resale value

0:55:490:55:51

in the region of £1.2 million.

0:55:510:55:55

Good job I've sold all ten, then, in't it?

0:55:560:55:58

At roughly the prices they've mentioned.

0:55:580:56:01

So I've made the right choice, haven't I?

0:56:010:56:04

Trevor has now sold all of the properties on to a housing association.

0:56:050:56:10

And while he won't divulge the exact figure,

0:56:100:56:12

it is roughly in line with the experts' valuations.

0:56:120:56:15

So, if all continues to go to plan,

0:56:150:56:18

this electrician turned property developer

0:56:180:56:20

could be looking at a profit of over half a million pounds

0:56:200:56:24

before tax and expenses.

0:56:240:56:26

So, what's the plan for the future?

0:56:260:56:28

I'm actually in the process of buying another plot,

0:56:290:56:32

literally a two-minute walk from here

0:56:320:56:35

for 13 houses.

0:56:350:56:37

Well, if he can make anything like the profit he's set to make here,

0:56:390:56:42

things are certainly looking bright for this former sparky.

0:56:420:56:46

Well, that's it for today's show

0:56:520:56:54

and all those stories from the auction rooms.

0:56:540:56:57

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

0:56:570:57:00

-We'll see you then.

-Goodbye.

-Bye.

0:57:000:57:02

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