0:00:02 > 0:00:06In these turbulent times, people shy away from the property market.
0:00:06 > 0:00:09But often people still choose to take a risk
0:00:09 > 0:00:14because bargains are there to be had in the auction if you're careful.
0:00:14 > 0:00:20Join us now on the Homes Under The Hammer rollercoaster of property ups and downs.
0:00:44 > 0:00:50Well, the atmosphere in the auction rooms can be electric with a real buzz in the air.
0:00:50 > 0:00:56You might grab yourselves a bargain by raising your hand, nodding or even just a wink of the eye.
0:00:56 > 0:00:59So what did people bid for today?
0:01:00 > 0:01:06This warehouse in Cornwall is definitely destined for demolition, but what then?
0:01:06 > 0:01:09This is a very interesting opportunity.
0:01:10 > 0:01:15In Walthamstow, London, I'm on the hunt for original features.
0:01:15 > 0:01:19Look at all this going on. I want to see what's under there.
0:01:20 > 0:01:27And talking of improvement, there's a lot of that needed at this Lancashire property.
0:01:27 > 0:01:30But I'm liking what I'm seeing.
0:01:31 > 0:01:37All these properties have been sold at auction. We'll find out who bought them and what they paid
0:01:37 > 0:01:40when they went under the hammer.
0:01:46 > 0:01:52This is Camborne in Cornwall, which is actually one of the largest Cornish towns.
0:01:52 > 0:01:58Dig below the surface and you'll find a rich seam of industrial heritage here.
0:02:00 > 0:02:06Mining plays a huge part in Cornish history, particularly tin mining,
0:02:06 > 0:02:10and the Dolcoath mine here in Camborne is a perfect example.
0:02:10 > 0:02:15Believed to be one of the deepest and richest mines in the county
0:02:15 > 0:02:20it became known as the Queen of Cornish mines.
0:02:20 > 0:02:25# Maybe if I told you the right words
0:02:25 > 0:02:28# Ooh, at the right time
0:02:29 > 0:02:31# You'd be mine... #
0:02:32 > 0:02:36Well, the lot I'm here to see sounds really interesting.
0:02:36 > 0:02:41It's an old warehouse. It had a guide price of £30,000-£50,000.
0:02:41 > 0:02:47Sounds quite a lot for an old warehouse? Not when I tell you that it has outline planning permission
0:02:47 > 0:02:52for the creation of four sizeable three-bedroomed houses.
0:02:52 > 0:02:56Suddenly it sounds like it could be a bit of a bargain.
0:02:58 > 0:03:04'It may not be much of a looker right now, but that outline planning permission turns this warehouse
0:03:04 > 0:03:09'from an ugly carbuncle into a completely different proposition.'
0:03:09 > 0:03:11# You don't know you're beautiful
0:03:11 > 0:03:18# If only you saw what I can see You'd understand why I want you so desperately
0:03:18 > 0:03:22# Right now I'm looking at you and I can't believe
0:03:22 > 0:03:26# You don't know You don't know you're beautiful
0:03:28 > 0:03:31# That's what makes you beautiful. #
0:03:33 > 0:03:36So what lies behind the roller door?
0:03:36 > 0:03:41Well, that is one big space, that's for sure.
0:03:41 > 0:03:47Nice thing to see straight away is it's got a flat floor and the other thing that's really important
0:03:47 > 0:03:52is that it's detached, so you haven't got any adjoining buildings.
0:03:52 > 0:03:59The importance of that is if you did have, you'd need approval from people adjoining the walls
0:03:59 > 0:04:06before you did any work. But that's not the case. It could be taken down quite easily.
0:04:06 > 0:04:10Outline planning permission was granted, not full permission.
0:04:10 > 0:04:16Basically, somebody has approached the council and said, "In principle, would you allow X, Y and Z?"
0:04:16 > 0:04:22And they've said, "We would allow four properties to be built here, roughly looking like this."
0:04:22 > 0:04:29You'd have to apply for full planning permission and then they'd look at architectural design,
0:04:29 > 0:04:36whether it fitted in with the area, et cetera. You're not all the way there, but you've gone a long way.
0:04:36 > 0:04:42And I reckon this is a very, very interesting opportunity.
0:04:45 > 0:04:49The planning consent is for a terrace of four good-sized homes.
0:04:49 > 0:04:54We're talking master bedrooms with en suite shower rooms,
0:04:54 > 0:05:00two downstairs reception rooms plus a downstairs loo, parking and landscaping. The guide price?
0:05:00 > 0:05:02£30,000-£50,000.
0:05:02 > 0:05:07So what does a local property expert think of the current plans
0:05:07 > 0:05:09for this warehouse?
0:05:09 > 0:05:16The planning at the moment is for a terrace of four three-bedroomed houses.
0:05:16 > 0:05:20To be frank, they're almost too big for this setting.
0:05:20 > 0:05:25I'd probably try and squeeze a fifth one in to try to max out the site.
0:05:25 > 0:05:29# I like to move it, move it I like to move it, move it
0:05:29 > 0:05:33# I like to move it, move it We like to move it! #
0:05:33 > 0:05:38What could the proposed houses fetch if sold on after refurbishment?
0:05:38 > 0:05:43The finished houses, depending on their specification,
0:05:43 > 0:05:50as per the current consent, would have a value in the region of £135,000-£145,000.
0:05:51 > 0:05:53And on the rental market?
0:05:53 > 0:05:59All four houses are essentially the same, although two are the bookends to the terrace.
0:05:59 > 0:06:04You'd be looking at about £600, £625 per calendar month.
0:06:07 > 0:06:11Well, what is there not to like about this project?
0:06:11 > 0:06:18A lot of land, it's flat, you've got this building to demolish and get lots of materials.
0:06:18 > 0:06:22Most importantly, you've got that outline planning permission.
0:06:22 > 0:06:28Maybe not one for somebody who hasn't done any building before, but if you're looking for that project
0:06:28 > 0:06:32the numbers stack up. Let's see who agreed when it went under the hammer.
0:06:33 > 0:06:35I do like this one.
0:06:35 > 0:06:38It's got planning consent in place.
0:06:38 > 0:06:41Start on at 60. 60 anywhere?
0:06:41 > 0:06:4550? OK, 40. That's 40. We're away.
0:06:45 > 0:06:47At 40,000. At two.
0:06:47 > 0:06:5042. 42. 44.
0:06:50 > 0:06:55- At 44. Against you, sir. - This lot took a while to warm up.
0:06:55 > 0:07:00- We return to the bidding at £80,000. - At 80. At 80.
0:07:00 > 0:07:0381 I'll take, sir. 81 it goes.
0:07:03 > 0:07:0582. And three. And four.
0:07:08 > 0:07:1384. Back left. For the first time, then. Serious stuff. At 84.
0:07:13 > 0:07:18For the first, second... 84,000. Third and final time.
0:07:18 > 0:07:19Selling.
0:07:19 > 0:07:25It was developer Simon, on the left, and his business partner and site foreman, Del,
0:07:25 > 0:07:30who secured this one with that successful bid of £84,000.
0:07:30 > 0:07:35# Go, DJ, pump this party Why waste your time You know you're gonna be mine
0:07:35 > 0:07:39# You know we're gonna be mine... #
0:07:39 > 0:07:44'I met Simon and Del back at the warehouse to hear their plans.'
0:07:45 > 0:07:50Simon, Del, great to meet you both. Congratulations.
0:07:50 > 0:07:55- Thank you very much.- Tell me why you wanted to buy this place.
0:07:55 > 0:08:00- We're always looking for little projects...- Little?!- Well, this is a nice little project.
0:08:00 > 0:08:04It's an easy one. And...it was cheap.
0:08:04 > 0:08:10- We thought it was quite cheap and we went for it.- Right. So you're experienced in this kind of world?
0:08:10 > 0:08:15- We've been doing this for many years. Too many years, in fact. - We've done one or two before.
0:08:15 > 0:08:22- So you're a building firm?- Yeah. - In this area or...?- Mainly Penzance, but we're looking at Camborne now.
0:08:22 > 0:08:28- Camborne's coming up pretty good now. - There's been a lot of investment in Camborne.- That's right.
0:08:28 > 0:08:32- So we're looking there. - So what's your relationship?
0:08:32 > 0:08:36I retired about 10 years ago. He came to me and said, "Come on,
0:08:36 > 0:08:41"I don't want you to end up in an old people's home.
0:08:41 > 0:08:45- "Let's go and do a project." We've done four.- He's had a new knee.
0:08:45 > 0:08:50I said to the doctor, "Can't we get one more house out of the old one?"
0:08:50 > 0:08:57- How old are you, if you don't mind me asking?- 74.- 74! You're looking pretty good.- I feel good.
0:08:57 > 0:09:01- I feel good.- I call him the medical miracle!- Quite right.
0:09:01 > 0:09:03# I feel good
0:09:05 > 0:09:11# So good So good, I got you... #
0:09:12 > 0:09:16So Del's fit as a fiddle and happy to take on another project.
0:09:16 > 0:09:21It seems as though these two work pretty well together, too.
0:09:21 > 0:09:25- So how does the business relationship work? 50/50?- Yeah.
0:09:25 > 0:09:31- Great.- Never had an argument. - No. I keep out of his way. That's why we don't have arguments.
0:09:31 > 0:09:37- He's got a little saying when we have a problem, "Don't worry. It's a doddle."- That's nice.
0:09:37 > 0:09:42And how do you split the work between you?
0:09:42 > 0:09:45I'll be onsite most of the time.
0:09:45 > 0:09:50I'm in the background. I sort out all the services, material costs.
0:09:50 > 0:09:56If Derek wants some materials onsite, he'll give me three or four days' notice and I get them there.
0:09:56 > 0:10:00- Time is money. - No one waits for stuff.
0:10:00 > 0:10:04It sounds like it's worked out really well.
0:10:04 > 0:10:10- It's a good partnership. - Our relationship is amazing. We've never had one cross word.
0:10:13 > 0:10:18Talking of cross words - four across, two down, three up - have they puzzled
0:10:18 > 0:10:21about what to do with the site?
0:10:21 > 0:10:28# Isn't life a little bit like a crossword puzzle? #
0:10:29 > 0:10:34So, then, the plan is to stick with the existing plans?
0:10:34 > 0:10:40No, the existing plans... It was granted outline planning permission in a boring block of four.
0:10:40 > 0:10:46So we decided to play around a little bit with them, put granite on the side,
0:10:46 > 0:10:51because it's in a conservation area. Natural slate roofs and double-glazed windows.
0:10:51 > 0:10:57Right. So that means you're going to have to go back to planning or not?
0:10:57 > 0:11:02- The planning application's already in.- Right. Worried that it might go through or not?
0:11:02 > 0:11:08We've done pre-apps, so it should be OK. We knocked on neighbours' doors and liaised with them.
0:11:08 > 0:11:10So far, so good.
0:11:13 > 0:11:19Simon and Del propose to put up two sets of three-bed semis, rather than a terrace of four houses.
0:11:19 > 0:11:23And they will be a little smaller than the original plan,
0:11:23 > 0:11:28without the en suites or second reception room downstairs.
0:11:28 > 0:11:34- In terms of the build costs, what's the build cost?- They usually are £1,000-£1,100 per square metre.
0:11:34 > 0:11:37That's the national rule of thumb.
0:11:37 > 0:11:41So what does that work out as price per unit?
0:11:41 > 0:11:48- At about... When you say per unit, because they're in blocks of two... - Right.- ..we hope to come in about
0:11:48 > 0:11:53- 140 per unit?- Per block of two? - Per block of two, yeah.
0:11:53 > 0:11:59The estate agent said there was a possibility of getting of getting another unit. You've gone for four.
0:11:59 > 0:12:04Would you consider five or do you want to give them more space?
0:12:04 > 0:12:09The reason we haven't gone for five is to stick our toe in the water and do four first
0:12:09 > 0:12:13- and see how we actually get on.- Ah.
0:12:13 > 0:12:17- Then we might. - You might keep that as an option?
0:12:17 > 0:12:21- Options are always good. - Potentially a fifth in the future.
0:12:21 > 0:12:26- And what's the timescale for all of this?- About 10 months.
0:12:27 > 0:12:32Might be less, but we're looking... That's our end line.
0:12:32 > 0:12:36- That sounds quite quick. - We won't hang around on this.
0:12:36 > 0:12:42- Congratulations. Good luck with it. We look forward to seeing it. - Cheers.
0:12:42 > 0:12:48Del and Simon certainly seem to know what they're doing and have a very good working relationship.
0:12:48 > 0:12:55This place is destined for demolition and in 10 short months there may be four properties here.
0:12:55 > 0:13:01They've still got to get planning permission, though, and will they build that fifth? Find out later.
0:13:05 > 0:13:10I'm in north-east London, Walthamstow to be precise,
0:13:10 > 0:13:14an area that's proving very popular with first-time buyers.
0:13:14 > 0:13:17When trying to get on the ladder in the expensive London market,
0:13:17 > 0:13:24the important factor is that the average price of a terraced house around here might be achievable.
0:13:25 > 0:13:29Here is today's auction property. A three-bed terraced house
0:13:29 > 0:13:34that had a guide price of £210,000. Not bad, but not great
0:13:34 > 0:13:40because the last property to sell on this street went for £216,000.
0:13:40 > 0:13:44Let's hope it doesn't require too much work on the inside.
0:13:45 > 0:13:49Oh, clearly it does need quite a lot of work inside.
0:13:49 > 0:13:54It's got a sort of corporate feel to it. Grey carpets, stark blue walls.
0:13:54 > 0:13:59There is a certain amount of character which I love. Up there.
0:13:59 > 0:14:05That ceiling is beautiful. What isn't beautiful is all this exposed pipe work.
0:14:05 > 0:14:07That is not working for me.
0:14:07 > 0:14:11Look at all this going on. I want to see what's under there.
0:14:11 > 0:14:17It'll be a thing of beauty so I'd want to get all this off and expose all of that.
0:14:17 > 0:14:21Now really big room size because the wall's been taken down,
0:14:21 > 0:14:27but a fantastic space. An old fireplace there doesn't do the room much justice.
0:14:27 > 0:14:30There's so much more you can do.
0:14:30 > 0:14:38It could, with a lot of hard work, be quite a nice home, but you need to put some thought and effort in.
0:14:38 > 0:14:42Mm, it does feel rather soulless and dated.
0:14:42 > 0:14:47That very basic kitchen has something I really don't like - a bathroom next door.
0:14:47 > 0:14:52There's also a separate loo here. You know where I'm going with this.
0:14:52 > 0:14:55Yup, upstairs.
0:14:55 > 0:15:01There are three good-sized bedrooms up here. To lose a bedroom or not, that is the question.
0:15:03 > 0:15:07No one wants to lose a bedroom if they can avoid it,
0:15:07 > 0:15:13but in this instance I think this room should be turned into the bathroom.
0:15:13 > 0:15:19It may have a small impact on the value, but it will make it more comfortable and more marketable.
0:15:19 > 0:15:26Losing this bedroom is the bad news, but the good news is there is space to create another one up there.
0:15:26 > 0:15:32A loft conversion doesn't necessarily require planning permission and it could fall
0:15:32 > 0:15:38into your permitted development rights. There are a whole host of conditions, but the main one to know
0:15:38 > 0:15:44is you cannot exceed 40 cubic metres for terraced houses and you will need building regs.
0:15:44 > 0:15:47Check your council website for a full checklist.
0:15:47 > 0:15:52It's great to know you have options to increase the square footage.
0:15:52 > 0:15:56And that is the quickest way to add value.
0:15:56 > 0:16:01'Typically, a loft conversion would cost around 30 grand,
0:16:01 > 0:16:05'but I reckon the return would be worth it.
0:16:05 > 0:16:10'Out the back there's a good-sized garden, but it could do with new fencing, a new shed
0:16:10 > 0:16:13'and certainly a bit of weeding.
0:16:13 > 0:16:19'What does a local property expert make of this place and taking away that downstairs bathroom
0:16:19 > 0:16:26- 'and creating a middle floor one instead?'- Sacrificing a bedroom for a ground-floor bathroom
0:16:26 > 0:16:31would have a massive impact on the value. Bedrooms increase value
0:16:31 > 0:16:37more than locations of bathrooms, but it could be overcome by cutting the second bedroom up
0:16:37 > 0:16:42to put in an internal bathroom or converting the loft space.
0:16:42 > 0:16:48'But if the new owner didn't do that conversion, how much could the property be worth?'
0:16:48 > 0:16:55As a three-bedroom property, renovated throughout, I'd put it on the market for £275,000
0:16:55 > 0:16:58with a view of achieving £270,000.
0:16:58 > 0:17:03So, to compare, what would happen if they did take away the bedroom
0:17:03 > 0:17:07and replaced it with a bathroom on the first floor?
0:17:07 > 0:17:11If the property was a two-bedroom property with a first-floor bathroom,
0:17:11 > 0:17:15I would suggest putting it on the market for £270,000
0:17:15 > 0:17:20with a view of achieving a figure between £250,000 and £260,000.
0:17:20 > 0:17:25What if the new owner did a loft conversion, giving them back a third bedroom?
0:17:25 > 0:17:32I would recommend putting it on the market for £320,000 with a view of achieving £310,000.
0:17:32 > 0:17:39So moving the bathroom upstairs and creating a third bedroom in the loft does see a real return.
0:17:39 > 0:17:47So it will require more cash and more work, but you will see your money back, which is key.
0:17:47 > 0:17:51Let's see who wanted this east end house when it went under the hammer.
0:17:51 > 0:17:56Lot Seven, where do you want to start? 200?
0:17:56 > 0:17:59200 there. 205.
0:17:59 > 0:18:02205. 210. 215.
0:18:03 > 0:18:05220. 225?
0:18:07 > 0:18:10220. 225. 230?
0:18:11 > 0:18:14230. Yeah?
0:18:14 > 0:18:18235. 240.
0:18:18 > 0:18:21New spot down here. 241.
0:18:21 > 0:18:24242. 243?
0:18:26 > 0:18:29244? 244.
0:18:29 > 0:18:31245.
0:18:31 > 0:18:33Must go one more.
0:18:33 > 0:18:37Well done. Now the acid test.
0:18:37 > 0:18:41246? He knows the value. 247? No?
0:18:41 > 0:18:44246 down here. Anyone else?
0:18:44 > 0:18:47At 246. First time.
0:18:47 > 0:18:50Second time.
0:18:50 > 0:18:53247, yeah? 248?
0:18:53 > 0:18:56250, good bid. 251?
0:18:56 > 0:18:59250. First time.
0:18:59 > 0:19:02Second time. Third and last time.
0:19:02 > 0:19:07Have you all done? Sold, 250. Well done.
0:19:07 > 0:19:12The final bid of £250,000 has certainly brought smiles to the faces
0:19:12 > 0:19:15of Delphine and her partner Johnny.
0:19:15 > 0:19:20Johnny's a filmmaker from London and Delphine, who's French, is a dancer.
0:19:20 > 0:19:23# Go, Johnny, go, go... #
0:19:23 > 0:19:30This three-bedroom terrace is going to be their home, leaving behind their rented flat in Spitalfields.
0:19:30 > 0:19:35Johnny and Delphine, lovely to meet you.
0:19:35 > 0:19:42- You were so excited and happy on auction day.- Yeah, it was a rush. It was a total...
0:19:42 > 0:19:46- Emotions were running high. - It's so exciting.
0:19:46 > 0:19:50You don't want to believe in it before the hammer goes down,
0:19:50 > 0:19:57then it goes so fast, it's yours before you have the chance to think, "Oh, my God! Is it really mine?"
0:19:57 > 0:20:00That was just, for me, really exciting.
0:20:00 > 0:20:06- So come on, tell me, how badly did you want this house? - Very badly. Otherwise, I don't think
0:20:06 > 0:20:13we would have put ourselves through it. I saw it only once, but we had seen so many properties in the area
0:20:13 > 0:20:17and I felt like that was it. I loved the upstairs.
0:20:17 > 0:20:21Downstairs felt like there was a lot of potential for it.
0:20:21 > 0:20:27We'd been looking in the area a lot and hadn't seen anything in our price range
0:20:27 > 0:20:30anywhere near as nice as this.
0:20:30 > 0:20:36They fell in love with it so much that it drew them to the auction room, a first for both of them.
0:20:37 > 0:20:41We weren't planning to buy at auction. We were looking
0:20:41 > 0:20:47and I didn't know anything about auctions, so I spent that week going to them to see what they're like.
0:20:47 > 0:20:54It was really scary! And then Del saw it the Saturday before the Monday of the auction,
0:20:54 > 0:20:57so we really didn't have much time to get used to the idea.
0:20:57 > 0:21:01# But don't think twice, it's all right... #
0:21:01 > 0:21:07Buying at auction is completely different from buying via the more usual channels.
0:21:07 > 0:21:13You also have to be prepared for the different way you may have to raise money.
0:21:13 > 0:21:19This is where Delphine and Johnny found themselves on a learning curve, like paying the seller's fee.
0:21:19 > 0:21:24- Unfortunately, there was also a bigger issue.- Beforehand,
0:21:24 > 0:21:31we'd found the perfect mortgage and thought, "We don't really need a broker." We'd the perfect product.
0:21:31 > 0:21:37But we didn't adapt our strategy to buying at auction. You only have 28 days to complete.
0:21:37 > 0:21:44Two weeks into that completion time, the lender refused to give us any money at all.
0:21:44 > 0:21:50- Why was that? Do you know the reasons?- Mainly because we're both self-employed.
0:21:50 > 0:21:56And a lot of Del's earning is from abroad, some of mine is dividends from my company.
0:21:56 > 0:22:01It's complicated to find a lender to accept those means of income.
0:22:01 > 0:22:04How did you come up with the money?
0:22:04 > 0:22:10It was hard, but we said, "Help!" And we phoned... I phoned a very good couple friend of mine
0:22:10 > 0:22:17who have done this in the past. They gave us great names of brokers who could help us.
0:22:17 > 0:22:21We called our families, who have been incredible.
0:22:21 > 0:22:26Thanks to them, basically, we have bought ourselves more time
0:22:26 > 0:22:33to find the right mortgage and finance it. But we got given help by the family.
0:22:33 > 0:22:40'So family and friends came to the rescue and they narrowly avoided a sticky financial situation.
0:22:40 > 0:22:46'That's an important point about buying at auction. Check that your lender will lend fast enough
0:22:46 > 0:22:52'or it could mean an expensive bridging loan. As it was, they had to use their budget of 20 grand
0:22:52 > 0:22:58'as well as the money they'd got from their families.' What changes do you hope to make?
0:22:58 > 0:23:04I ask, "So, guys, what's your budget?" But I don't think I can ask that at this stage!
0:23:04 > 0:23:07- There is no money! - No more budget for a little while.
0:23:07 > 0:23:12So if we are hopefully going to come back and see what you've done,
0:23:12 > 0:23:18- what changes do you hope to make when you get the money together? - Actually, quite a few.
0:23:18 > 0:23:24On the cosmetic side, we just want to take it back to the floorboards and something more original.
0:23:24 > 0:23:30There's really nice original features on some of the ceilings and the fireplace upstairs.
0:23:30 > 0:23:37- We'd like some of that character back.- We're hoping to bring the bathroom upstairs
0:23:37 > 0:23:44and to create... We figured we spend a lot of time in the kitchen and we love having people around,
0:23:44 > 0:23:50so to have a bigger kitchen space at the back and maybe even to open this wall
0:23:50 > 0:23:58to open even more of the house towards the kitchen area and have this end as the diner, basically.
0:23:58 > 0:24:04'Big plans, but the main aim is to get the really messy jobs done in four weeks, then move in
0:24:04 > 0:24:09'and get on with it gradually. It'll be a dusty building site,
0:24:09 > 0:24:13'but they're so passionate about the house, will they notice?'
0:24:13 > 0:24:19This house could be wonderful, but it's stuck in a time warp. It needs to be released.
0:24:19 > 0:24:23Yes, completely. And we're ready to do that. We love it.
0:24:23 > 0:24:28- We love the house!- You've just got to find a way of paying for it now!
0:24:28 > 0:24:33It's been so lovely meeting you. I cannot wait to see it. Good luck.
0:24:33 > 0:24:36- Delphine. - Thank you so much.- Thank you.
0:24:36 > 0:24:39Oh, I do love a happy ending!
0:24:39 > 0:24:44It could have been so, so different for Johnny and Delphine
0:24:44 > 0:24:48if they hadn't been able to secure the cash to buy this house.
0:24:48 > 0:24:54Will they move in in just four weeks? The pressure is most definitely on.
0:24:54 > 0:24:58Find out how the couple get on later in the programme.
0:24:58 > 0:25:02Coming up: I make some discoveries in Lancashire.
0:25:02 > 0:25:07Oh, there's a huge gap behind there. I'd love to see a massive great fire.
0:25:08 > 0:25:13The owner of this property in London has been on a steep learning curve.
0:25:13 > 0:25:18I know a bit about plumbing, electrics, my carpentry is better.
0:25:19 > 0:25:24But first priorities at this project in Cornwall have been skewed.
0:25:24 > 0:25:28We decided to have a month off cos we wanted to go surfing.
0:25:30 > 0:25:38'Back now to Camborne in Cornwall and this warehouse with outline permission to build four homes.
0:25:39 > 0:25:43'Business partners Simon and Del bought it at auction for £84,000.
0:25:46 > 0:25:53'They hoped to tweak the designs and put up two sets of three-bed semis and possibly a fifth property, too.'
0:25:53 > 0:25:58- So how's the business relationship? Are you 50/50 partners?- Yeah.
0:25:58 > 0:26:04- Never had an argument. - No. I keep out of his way. That's why we never have arguments.
0:26:04 > 0:26:09He has a little saying. "Don't worry about it. It's a doddle."
0:26:09 > 0:26:16Simon and Del were planning to spend up to 10 months and £280,000 on this particular doddle.
0:26:16 > 0:26:22But will it be rave reviews all round for the demolition of this warehouse?
0:26:22 > 0:26:27Will they stay true to the four to the floor roots of the outline plans
0:26:27 > 0:26:34or will Simon and Del sneak a cheeky extra little beat into this particular bar?
0:26:34 > 0:26:36Seven months later, we're back.
0:26:36 > 0:26:39# Bring the action. #
0:27:02 > 0:27:04'Fantastic.
0:27:04 > 0:27:10'Not only have they managed to fit in their two lots of two three-bed semis, but work has also started
0:27:10 > 0:27:13'on a fifth, detached property.
0:27:15 > 0:27:20'The four semis are nearly complete, three months ahead of schedule.
0:27:20 > 0:27:24'In fact, the whole build appears to have gone swimmingly.'
0:27:24 > 0:27:28We knocked the warehouse down. That came down in 2½ days.
0:27:28 > 0:27:34Within a week, we'd had the whole groundwork done and the drains.
0:27:34 > 0:27:39Then we got the slab in, got the slab down,
0:27:39 > 0:27:44got it all polished up and decided to have a month off to go surfing.
0:27:44 > 0:27:51There was some great surfing off Africa, so we all decided to go over there to surf.
0:27:51 > 0:27:56We closed up for a month, so the whole of September it was closed down.
0:28:00 > 0:28:04We had a lovely time. I tell a little fib - I never went!
0:28:06 > 0:28:09I stayed at home, but the firm went surfing.
0:28:10 > 0:28:16I didn't have you down as a surfer dude, Del, but once they all got back to business,
0:28:16 > 0:28:22the buildings went up in no time. The team are hard at work on the fifth, detached house
0:28:22 > 0:28:28which will have the same floorplan as the semis. They hope to have that finished in six weeks.
0:28:28 > 0:28:34While there's still a bit of decorating to do, the overall finish really is pretty good.
0:28:37 > 0:28:44Everything is really well done here. We've left a space here so you can have a table
0:28:44 > 0:28:47with probably three or four chairs round.
0:28:47 > 0:28:52And this is all plumbed in for dishwashers and washing machines
0:28:52 > 0:28:56so everything's spot-on here. Absolutely superb kitchen.
0:28:56 > 0:29:01Well designed, lovely light and airy. Beautiful.
0:29:02 > 0:29:05Simon and Del paid £84,000 for the plot
0:29:05 > 0:29:10and planned to spend £280,000 on the four semis,
0:29:10 > 0:29:13so how much has it ended up costing?
0:29:13 > 0:29:17The four properties cost 220,000 to build.
0:29:17 > 0:29:24It was then 110,000 for the price of the purchase with the demolition
0:29:24 > 0:29:26and the utility connections
0:29:26 > 0:29:31and all the administration costs of solicitors, architects,
0:29:31 > 0:29:34so if you put 110 and 220,
0:29:34 > 0:29:39they stand us in at the moment at 330,000 for the four.
0:29:41 > 0:29:43I reckon that £330,000 spend
0:29:43 > 0:29:49means Simon and Del are actually under budget on the build for the four semis.
0:29:49 > 0:29:54Simon hopes to bring the fifth three-bed, detached house in for around 60,000
0:29:54 > 0:29:58which would bring their total outlay here to 390,000.
0:30:00 > 0:30:03We asked two local property experts,
0:30:03 > 0:30:06including the one who sold this warehouse,
0:30:06 > 0:30:08to tell us what they make of the development.
0:30:08 > 0:30:11The original planning consent
0:30:11 > 0:30:15was for houses that, quite honestly, were too large for the spot.
0:30:15 > 0:30:18He's shrunk them economically just enough
0:30:18 > 0:30:24to the point where they still provide what they need to provide, but are good business for him.
0:30:24 > 0:30:28The finish is very good. Nice modern kitchens and bathroom fittings.
0:30:28 > 0:30:32And obviously conveniently located for the town.
0:30:32 > 0:30:36What might the finished properties fetch on the rental market?
0:30:38 > 0:30:44For the semi-detached houses, I'd be hoping to get pretty close to £600 per calendar month.
0:30:44 > 0:30:48For the detached house, I'd want to get £600 per month.
0:30:48 > 0:30:54The rental value would be in the region of £650 per calendar month for the semi-detached
0:30:54 > 0:30:58and maybe up to £700 per calendar month for the detached.
0:30:58 > 0:31:04Those rental valuations would mean a yield on the semis of around the 9% mark.
0:31:04 > 0:31:08But Simon and Del's preferred option is to sell the properties on.
0:31:08 > 0:31:13So, what do the experts think they could fetch on the re-sale market?
0:31:14 > 0:31:19The semi-detached properties would be worth somewhere in the region of 125,000
0:31:19 > 0:31:25with the detached property maybe up towards 145,000.
0:31:25 > 0:31:27For the semi-detached houses,
0:31:27 > 0:31:31I would expect to put them on the market at £134,950
0:31:31 > 0:31:35and aim to get as much over 130,000 as the market would bear.
0:31:35 > 0:31:41For the detached, I'd be asking about £140,000 and wouldn't want to come too far back from it.
0:31:41 > 0:31:44I think that's what we expected, really.
0:31:44 > 0:31:48The 125 is a couple of grand short, I think, but apart from that...
0:31:48 > 0:31:53But 140, 145 for the detached, very pleased indeed.
0:31:55 > 0:31:57The experts' re-sale valuations
0:31:57 > 0:32:04would mean a pre-tax profit on the semis of between £170,000 and £190,000
0:32:04 > 0:32:06which is very good indeed.
0:32:06 > 0:32:10That's four properties almost finished, another on its way
0:32:10 > 0:32:12and all of them now under offer.
0:32:14 > 0:32:18So, has this really been the doddle that Del thought it would be?
0:32:18 > 0:32:20Yeah, a doddle. Yeah.
0:32:20 > 0:32:22It went as sweet as a nut.
0:32:23 > 0:32:27Del's taken the words out of my mouth. A doddle!
0:32:32 > 0:32:38I'm in the beautiful county of Lancashire, 19 miles away from the buzz of Manchester.
0:32:38 > 0:32:43# I'm in the middle of nowhere Come and show me the way... #
0:32:43 > 0:32:49You might be forgiven for thinking you've travelled a million miles if you came across a halo.
0:32:49 > 0:32:55This futuristic sculpture is just one of a series dotted around the Pennine peaks
0:32:55 > 0:32:58and it hovers over the town of Haslingden where I am today.
0:32:58 > 0:33:02Haslingden is a former mill town and lots of the properties here
0:33:02 > 0:33:07are former millworkers' cottages and terraces like the one that was up for auction.
0:33:07 > 0:33:12One thing I really like about it is it's on this little private drive.
0:33:12 > 0:33:14There's even somewhere to hang your washing,
0:33:14 > 0:33:18although talking of driving, you can hear a fairly busy nearby road.
0:33:18 > 0:33:24The property itself is an end terrace. I like that. It means you've got a lot more space.
0:33:24 > 0:33:29It looks in reasonable condition and it benefits from some nice views. Let's look inside.
0:33:29 > 0:33:33The house had a guide price of £30,000 to £35,000
0:33:33 > 0:33:37and I'm already very taken by the lovely surroundings.
0:33:37 > 0:33:43So, does the interior match the rather impressive location? Well, let's find out.
0:33:43 > 0:33:46The first thing to say, really nice, high ceilings.
0:33:46 > 0:33:50That makes such a difference in how a property feels,
0:33:50 > 0:33:52so we like this room straight off.
0:33:53 > 0:33:57A nice, big... In fact, a huge, great gap behind there.
0:33:57 > 0:34:03I'd love to see a massive, great fire on there. That would be such a feature.
0:34:03 > 0:34:06There's some original stuff going on too which is good news.
0:34:06 > 0:34:12Through to the rear of the property where it's a bit dark, partly because the windows are boarded up,
0:34:12 > 0:34:15but look at the size of this room! The high ceilings...
0:34:15 > 0:34:21The huge, great... I guess this is a fireplace area, but I imagine a cooker was in there at some point.
0:34:21 > 0:34:24But, er... I'm liking what I'm seeing.
0:34:25 > 0:34:29On the other side of the boarded-up window and door
0:34:29 > 0:34:33is a terraced patio with access to the back of the row of houses.
0:34:33 > 0:34:35On the first floor, there are two bedrooms.
0:34:35 > 0:34:38The small one is at the rear.
0:34:40 > 0:34:44The master bedroom at the front is a good-sized double.
0:34:44 > 0:34:50I don't know if the wallpaper has been pulled off as a start on decorating or if damp has caused it,
0:34:50 > 0:34:53so I'd advise checking that out.
0:34:53 > 0:34:59Across the landing, the bathroom suite is very dated, but could be salvaged
0:34:59 > 0:35:01if your budget was really tight.
0:35:03 > 0:35:06And there's more accommodation in this house.
0:35:07 > 0:35:10Up on to the top floor and a really useful attic space.
0:35:10 > 0:35:14You couldn't call this a bedroom as it doesn't meet building regulations -
0:35:14 > 0:35:18the stairs, the banister, no escape route out of the windows,
0:35:18 > 0:35:22probably doesn't have enough support in the floors, etcetera.
0:35:22 > 0:35:28But it probably would be worth upgrading it, so that it would be able to be used as a bedroom
0:35:28 > 0:35:31or you could keep it like this, a really useful extra space.
0:35:31 > 0:35:37I like properties which give you options and that's exactly what you have here...
0:35:38 > 0:35:43..as this two-bed could potentially become a three-bed.
0:35:43 > 0:35:48Down the two flights of stairs, you can go deeper still to the basement.
0:35:49 > 0:35:54It's no more than a storage area at the moment, but someone has added some extra doors.
0:35:54 > 0:35:57I wonder where they lead?
0:35:58 > 0:36:02When it comes to making the most of underused parts of any property,
0:36:02 > 0:36:05it's really important to think outside the box,
0:36:05 > 0:36:11but it's also really important to know what is achievable for not too much money,
0:36:11 > 0:36:13so if it's worth doing or not.
0:36:13 > 0:36:18In this case, the good news is that on the other side of those doors in the cellar is this.
0:36:18 > 0:36:23There is an access existing. It's already got the lintel over the top
0:36:23 > 0:36:28and you could put some more doors in there and create some steps up on to this patio area.
0:36:28 > 0:36:34You'd have the views. Suddenly, you've got a really nice space that you can use for whatever you fancy -
0:36:34 > 0:36:36a cinema room, a kids' play area...
0:36:36 > 0:36:40It's all good news and I don't think it would cost too much money.
0:36:40 > 0:36:45# We've got to open up and change our point of view... #
0:36:46 > 0:36:50The views from this elevated house are fantastic.
0:36:50 > 0:36:53Just across the path, a bonus feature is the garden.
0:36:53 > 0:37:00OK, it's overgrown and on a steep incline, but it is a great asset to the property.
0:37:00 > 0:37:05I'm really excited about this place that went to auction guided at £30,000 to £35,000.
0:37:05 > 0:37:08We asked a local property expert
0:37:08 > 0:37:10to come and tell us what he thinks of it.
0:37:11 > 0:37:14Yeah, this street is a little bit different
0:37:14 > 0:37:17in that there's no vehicle access to it.
0:37:17 > 0:37:22The gardens at the front give it a bit of a stand-out position
0:37:22 > 0:37:24and certainly the views are superb.
0:37:24 > 0:37:29So far, so good, but what about the house itself and the potential to go down into the cellar?
0:37:29 > 0:37:36There's an opportunity here for somebody to look at the basement and convert that into a kitchen.
0:37:36 > 0:37:42Other properties on this street have done just that and you'd get two reception rooms on the ground floor.
0:37:42 > 0:37:45There are options available to the new owners,
0:37:45 > 0:37:49depending on what they want to spend, but would it be worth it?
0:37:49 > 0:37:52How much could it be worth after refurbishment?
0:37:52 > 0:37:57Once done, depending on how far the work goes, you could easily see £75,000.
0:37:57 > 0:38:03And the numbers buy-to-let investors are always interested in, the rental potential?
0:38:03 > 0:38:09From a rental point of view, something in the region of £425 to £450 per calendar month.
0:38:10 > 0:38:13What of this end terrace in Haslingden?
0:38:13 > 0:38:19Well, lots of space already. I think you could expand it even further. There's the cellar to work on.
0:38:19 > 0:38:24Nice views, a bit of noise from the road, but for the money, a really good one to go for.
0:38:24 > 0:38:27Who agreed when it went under the hammer?
0:38:29 > 0:38:32Lot 167. Start me at 20,000? £20,000?
0:38:32 > 0:38:3420 I've got, far left-hand side.
0:38:34 > 0:38:3720,000. 22? 22 here.
0:38:37 > 0:38:40At 24? 24 we've got. At 26?
0:38:40 > 0:38:42And I've got it. 28?
0:38:42 > 0:38:4628 I've got. 30? New bidder here further forward at 30,000. 32?
0:38:46 > 0:38:49No, shaking his head.
0:38:49 > 0:38:53So, it's with you... Is that 32 stood? 34 sat down.
0:38:53 > 0:38:58I'll take one if it helps you. It does. Gentleman stood at the back, 35,000. 36. 37.
0:38:58 > 0:39:02New bidder on my left at 38. 39 sat.
0:39:02 > 0:39:0540? Got it. 41?
0:39:05 > 0:39:1041,000. Gentleman sat on my right at 41. Are we all done at 41,000?
0:39:10 > 0:39:16First time at 41, second time... At 41,000, are we all finished?
0:39:16 > 0:39:19Yes, we are. Your paddle, 240. Well done.
0:39:19 > 0:39:24'It was Paul who made that final successful bid of 41,000.
0:39:25 > 0:39:28'He lives in Haslingden and is a qualified electrician.
0:39:28 > 0:39:32'This is his first property purchase.
0:39:32 > 0:39:37'I met up with him back there to find out why he had a light-bulb moment for this one.'
0:39:38 > 0:39:42- Paul, lovely to meet you.- Hello. - Congratulations.- Thank you.
0:39:42 > 0:39:46Interesting house. Tell me why you wanted to buy it.
0:39:46 > 0:39:52We've been looking for a while to buy a house, me and the missus. We've been together nearly four years.
0:39:52 > 0:39:57We just thought the time was right, looking for somewhere for the right amount of money.
0:39:57 > 0:40:02We got into the auction thing. This place came up and we got it. First one we went for.
0:40:02 > 0:40:06- This will be your home? - Yeah, we want to do it for me and the three kids.
0:40:06 > 0:40:10Did you know about this interesting line of properties here?
0:40:10 > 0:40:13Not really. I know the area pretty well.
0:40:13 > 0:40:18I've done a million paper rounds, milk rounds, so I know most of the houses around here.
0:40:18 > 0:40:20But I've never had a look down here.
0:40:20 > 0:40:25- What was it about it that you really liked?- The garden, the views.
0:40:25 > 0:40:30There's plenty of room in it. It needs lots of work doing to it, but it can be a perfect home for us.
0:40:30 > 0:40:33# Gonna move right in
0:40:34 > 0:40:37# Gonna move right in... #
0:40:37 > 0:40:43'It's great that this quirky house is going to be a family home, but Paul certainly has a lot to do
0:40:43 > 0:40:46'just to get it up to standard for his family.'
0:40:46 > 0:40:48What will you do to sort it out?
0:40:48 > 0:40:52Convert the loft properly, so that will be a bedroom.
0:40:52 > 0:40:57The daughter's room directly above this will be made bigger to make that a sizeable room,
0:40:57 > 0:41:00then this kitchen is going into the cellar.
0:41:00 > 0:41:03This will turn into a bedroom and an en-suite in that corner.
0:41:03 > 0:41:07Having a bedroom in the cellar is like a dungeon almost,
0:41:07 > 0:41:12but we can put French doors in down there which will give some natural light to the kitchen.
0:41:12 > 0:41:14It's a good size for a kitchen.
0:41:15 > 0:41:18'I love the idea of a cinema room,
0:41:18 > 0:41:24'but putting the kitchen in the basement is a very clever use of the space this house has to offer.
0:41:24 > 0:41:29'The bonus is that it will allow a bedroom on the ground floor without losing the living room.
0:41:29 > 0:41:35'But all that moving around, plus taking the whole place back to a shell is a lot of work,
0:41:35 > 0:41:37'plus it sounds very expensive.'
0:41:38 > 0:41:41How much to do what you're planning?
0:41:41 > 0:41:45Well, we've got about £12,000 to do it up.
0:41:45 > 0:41:51It probably needs about 20, but I'm going to be calling a lot of favours off a lot of friends.
0:41:51 > 0:41:57There's 12 grand just in the window of the kitchen and putting up the walls where we need 'em, insulation.
0:41:57 > 0:42:02I'm not going to have a lot of money left for labour.
0:42:02 > 0:42:05Are the rest of the family old enough to help?
0:42:05 > 0:42:10My lad's ten. He's the eldest. He'll be able to pick stuff up and put it in the skip,
0:42:10 > 0:42:13but not on a grand scale, no, unfortunately.
0:42:13 > 0:42:16What standard of renovation are you going for?
0:42:16 > 0:42:21Pretty high. We want a good finish, all the work to be carried to a good level,
0:42:21 > 0:42:26which will be hard because I'm doing it for favours, but I've got a good bunch of friends,
0:42:26 > 0:42:29so that's the standard we're looking for.
0:42:29 > 0:42:34'Now I'm concerned. Paul's going for a high standard of finish with a small budget.
0:42:34 > 0:42:40'He hopes to have the work done in six months, pulling in favours from mates and doing his full-time job,
0:42:40 > 0:42:43'but I'm excited by his plans
0:42:43 > 0:42:48'and maybe this property could spark a new career path for electrician Paul.'
0:42:48 > 0:42:50We hope to get some equity out of this.
0:42:50 > 0:42:55At the end if it, if we've made some money, we can borrow on top of it and do it again.
0:42:55 > 0:43:00I probably should have done it a long time ago, but it took me to now to jump on it.
0:43:00 > 0:43:04I think it's a good time because properties are pretty low again,
0:43:04 > 0:43:08so, yeah, I think it's going to be the future...
0:43:08 > 0:43:11I'm hoping it's a good future for me.
0:43:11 > 0:43:18- We wish you all the best with that. Good luck.- Thanks.- I look forward to seeing how you transform it.- Cheers.
0:43:21 > 0:43:28Will Paul the electrician find turning this house into a home an electrifying experience?
0:43:28 > 0:43:33Or will the realities of renovation bring him back down to earth?
0:43:33 > 0:43:35You can find out later in the show.
0:43:38 > 0:43:43So, did our buyers have their eyes wide open when they made their bids?
0:43:43 > 0:43:46Or were they blind to the hidden pitfalls?
0:43:46 > 0:43:49Let's go back and see just how clear their vision was.
0:43:49 > 0:43:55Now we're back in north-east London in this three-bedroom, mid-terraced house in Walthamstow.
0:43:55 > 0:43:59Johnny and Delphine bought it for 250,000 at auction.
0:43:59 > 0:44:02Johnny's a film-maker and Delphine's a dancer.
0:44:02 > 0:44:05They had to borrow money from friends and family
0:44:05 > 0:44:09after the loan they thought they had arranged and secured fell through.
0:44:09 > 0:44:15They were going to need to come up with some more money to fix this place up.
0:44:17 > 0:44:23This house could be wonderful, but it's just stuck in a time warp and it needs to be released.
0:44:23 > 0:44:27- Yes.- Yeah.- Completely. And we're ready to do that. We love the house.
0:44:27 > 0:44:32- We're going to release it. - You've just got to find a way of paying for it now!- Yeah!
0:44:32 > 0:44:35Let's join them almost a year and a half later
0:44:35 > 0:44:40to see if they did manage to rustle up enough cash to get this renovation done.
0:44:45 > 0:44:48And I'm pleased to see they have!
0:44:52 > 0:44:57So, since you were last here, we've installed a bathroom upstairs.
0:45:03 > 0:45:06We've redecorated the remaining two bedrooms.
0:45:08 > 0:45:13We've finished the living room, redecorated that, and we've started work on the kitchen.
0:45:13 > 0:45:17We've done all the construction, but we need to tile and build the units.
0:45:17 > 0:45:23None of the corridors are done yet and there's still the loft conversion to do.
0:45:23 > 0:45:27Yes, a loft conversion was always going to be a great idea,
0:45:27 > 0:45:31so I'm glad plans are afoot to start renovating that space.
0:45:31 > 0:45:34That loft conversion will give them their third bedroom back
0:45:34 > 0:45:39as they've moved the bathroom from downstairs to the first floor
0:45:39 > 0:45:42and lost the middle bedroom to accommodate it.
0:45:42 > 0:45:48Losing the WC and bathroom from downstairs has meant they could really open up the kitchen.
0:45:50 > 0:45:53They've gone for a sensitive renovation,
0:45:53 > 0:45:58making good use of the Victorian period features and mixing it with a contemporary style throughout.
0:45:58 > 0:46:03I think it's pretty much what I also imagined it would be.
0:46:03 > 0:46:06When you start, you try and look past what you see
0:46:06 > 0:46:11and see spaces and the potential that they have and I'm really happy.
0:46:11 > 0:46:14I love the floors, I love the area,
0:46:14 > 0:46:19but the whole home inside, I'm super...super-super happy.
0:46:19 > 0:46:25The couple did manage to get a mortgage in the end, so they could pay their friends and family back.
0:46:25 > 0:46:29This meant it was a little easier to rustle up more money for the work.
0:46:29 > 0:46:32So far, we've spent about 20 grand.
0:46:32 > 0:46:38We didn't think we'd be able to do that, but we both had good years professionally last year,
0:46:38 > 0:46:42so we were able to do more than we thought we would.
0:46:42 > 0:46:47Johnny has done a lot here himself. Not bad considering he was very much a novice!
0:46:47 > 0:46:50Before this, I hadn't done any DIY.
0:46:50 > 0:46:55I've kind of become an expert on floors. I know a bit about plumbing, a bit about electrics.
0:46:55 > 0:46:57My carpentry's getting better.
0:46:57 > 0:47:01A team of professionals were on hand for the more tricky jobs,
0:47:01 > 0:47:05but Delphine helped with stripping the walls and re-plastering.
0:47:05 > 0:47:09Not bad when you consider she was heavily pregnant at the time!
0:47:09 > 0:47:15Yes, that's right, there's another new feature in the house now - their one-year-old son Roman.
0:47:16 > 0:47:19Yeah, there's a little Roman.
0:47:19 > 0:47:23He was born a year and a few weeks ago.
0:47:25 > 0:47:29And it's fabulous and it's also why we did this move, to be honest.
0:47:29 > 0:47:32We didn't have enough space in the other place.
0:47:32 > 0:47:37It was a really great push for us to just go, "Let's do it."
0:47:37 > 0:47:43And so he's happy and he's got his own room. It's really brilliant. We're lucky.
0:47:43 > 0:47:48How wonderful! And Roman will no doubt have years of enjoyment in this lovely house.
0:47:48 > 0:47:53When they get round to doing the garden, I'm sure he'll make full use of that as well.
0:47:53 > 0:47:59So, with the new baby on the scene and all that work, was it a stressful project for them?
0:47:59 > 0:48:02I felt we were a really great team, actually.
0:48:02 > 0:48:05I...I really enjoyed it
0:48:05 > 0:48:08and it was pretty... pretty straightforward.
0:48:08 > 0:48:12I can't imagine this pair letting stress get the better of them.
0:48:12 > 0:48:15I think they've done a wonderful job so far.
0:48:15 > 0:48:17What about some other opinions?
0:48:17 > 0:48:20Let's hear from two local property experts.
0:48:20 > 0:48:25The changes in the property are absolutely fantastic. It's undergone a major renovation.
0:48:25 > 0:48:29I'm really impressed. It's made the property a lot more modern,
0:48:29 > 0:48:32but keeping with the contemporary feel of its age.
0:48:32 > 0:48:36The way they've gone about restoring or improving it is excellent.
0:48:36 > 0:48:39The usage of the ground floor space
0:48:39 > 0:48:44by moving the bathroom upstairs into one of the bedrooms is fantastic.
0:48:44 > 0:48:48For the time being, Johnny and Delphine are going to enjoy this as their family home.
0:48:48 > 0:48:52Let's find out what kind of value all their effort has added here.
0:48:52 > 0:48:58They bought it for 250,000 and have spent around 20,000 so far.
0:48:58 > 0:49:01That's a total outlay of £270,000.
0:49:01 > 0:49:04What do the experts think it's worth now?
0:49:04 > 0:49:09I would expect this property to re-sell for a figure in the region of £300,000 to £310,000.
0:49:09 > 0:49:13Once completed, it will be worth about £400,000.
0:49:13 > 0:49:15That's great. Yeah, that's really...
0:49:15 > 0:49:19That's like the best mat leave I can ever dream of.
0:49:19 > 0:49:22That's a lot more than we were thinking.
0:49:22 > 0:49:24No wonder they're happy.
0:49:24 > 0:49:29That top figure gives them a profit of almost 150,000,
0:49:29 > 0:49:32minus the usual tax and expenses, of course.
0:49:32 > 0:49:37So, what about when they complete the loft extension and get that third bedroom back?
0:49:37 > 0:49:41If this property was extended into a three-bedroom house,
0:49:41 > 0:49:46I would expect the value to be in the region of £325,000 to £350,000.
0:49:46 > 0:49:53If the property was extended into the loft, I think you would get about £450,000 for that.
0:49:53 > 0:49:59- Amazing.- Yeah.- Which we will do. That's totally...- We're definitely doing the loft, aren't we?- Exactly.
0:49:59 > 0:50:02And... That's great. That's really great.
0:50:02 > 0:50:07There's a difference of £100,000 between those two valuations
0:50:07 > 0:50:12which just goes to show how varied even professional opinions can be.
0:50:12 > 0:50:18Either way, they'd make a fabulous return if they did sell, but they'll not think about that for a while.
0:50:18 > 0:50:21They seem happily settled here and so does Roman.
0:50:22 > 0:50:26It's just starting to really become what we had hoped it could be.
0:50:26 > 0:50:30Yeah. When we do the garden, he'll have a little space to run around.
0:50:30 > 0:50:36I think he's so lucky. It's great. There's good schools, a good home, good neighbours.
0:50:36 > 0:50:41There's loads of kids around us as well, so he's really well surrounded.
0:50:41 > 0:50:44Yeah, I think he's a happy little one.
0:50:46 > 0:50:49# Loving the alien... #
0:50:50 > 0:50:54'We're re-materialising back in Lancashire now
0:50:54 > 0:50:56'in the town of Haslingden
0:50:56 > 0:51:02'where this tall end of terrace offered not just the standard living space with two bedrooms,
0:51:02 > 0:51:05'but a loft space and a large basement too
0:51:05 > 0:51:09'and a garden Sherpa Tenzing might have found challenging!
0:51:09 > 0:51:14'Electrician Paul bought it for £41,000 as a first home for himself,
0:51:14 > 0:51:18'partner Laura and their three children. He had ambitious plans.'
0:51:18 > 0:51:24- What are you going to do to sort it out?- Convert the loft properly, so that will be a bedroom.
0:51:24 > 0:51:29The daughter's room directly above this will be made bigger to make that a sizeable room.
0:51:29 > 0:51:36This kitchen is going into the cellar. This will turn into a bedroom and an en-suite in that corner.
0:51:36 > 0:51:40'Turning this into a four-bedroomed house was a big plan,
0:51:40 > 0:51:44'so I was worried that Paul's budget was rather small.'
0:51:44 > 0:51:47How much to do what you're planning?
0:51:47 > 0:51:51We've got about £12,000 to do it up. It probably needs about 20.
0:51:51 > 0:51:54But I'll be calling a lot of favours off a lot of friends.
0:51:54 > 0:51:59With help from friends, Paul hoped the work would be completed in six months.
0:51:59 > 0:52:04Well, it's now 18 months later and we meet Paul,
0:52:04 > 0:52:09Krystle and Abby in pink back at the property to find out what's been happening.
0:52:12 > 0:52:15A great deal of work has been finished.
0:52:17 > 0:52:21The bathroom has been enlarged with space gained from the landing.
0:52:25 > 0:52:28Krystle's bedroom at the back has been decorated.
0:52:31 > 0:52:34The front bedroom has this feature wall
0:52:34 > 0:52:38and up in the loft, Abby's bedroom has gained extra space.
0:52:38 > 0:52:41We've done a lot of work up here, as you can see.
0:52:41 > 0:52:46We've taken these walls back - that wall, that wall and that wall.
0:52:46 > 0:52:51We've added an en-suite. We've put an extra window in.
0:52:51 > 0:52:57We've dropped the ceiling, we've put a new floor in, so we've done an awful lot of work up here.
0:52:57 > 0:53:02The en-suite will also have a roof light installed to act as a fire escape,
0:53:02 > 0:53:08so the room will meet building regulations, and both girls are pleased with the progress.
0:53:08 > 0:53:13It is a bit messy, but it has improved a lot since we first saw the house.
0:53:13 > 0:53:18It was all messy, but we offered to clean it up and make it better.
0:53:18 > 0:53:22We got to choose the colours and the wallpapers that we wanted.
0:53:22 > 0:53:26Electrician Paul has re-wired the house.
0:53:28 > 0:53:31Progress on the ground floor has been slower.
0:53:31 > 0:53:37In the corner of the living room under the stairs, there's a new opening to a ground floor bathroom
0:53:37 > 0:53:39and access down to the cellar.
0:53:39 > 0:53:43And the back of the ground floor has seen another change.
0:53:43 > 0:53:48Originally, we were going to make this a bedroom and move the kitchen downstairs,
0:53:48 > 0:53:52but because there's no waste water out the front which is that side,
0:53:52 > 0:53:56we've had to keep the kitchen where it is as that's where the waste is.
0:53:56 > 0:53:59We've dropped the ceiling, insulated it.
0:53:59 > 0:54:06This won't be the finished kitchen. We'll put a new one in. This one is just temporary to keep us going.
0:54:06 > 0:54:10This room looks pretty good, but it'll look better when it's finished.
0:54:10 > 0:54:16Come on, Paul. If the kitchen is going to stay in situ, what's going down below?
0:54:17 > 0:54:21The basement now is going to be a bedroom for the eldest son.
0:54:21 > 0:54:26With a separate access to the cellar, it means Paul's son will be able to get in and out
0:54:26 > 0:54:29without disturbing the rest of the family.
0:54:29 > 0:54:33But we can't get in the basement as it's being used for storage.
0:54:33 > 0:54:39Most of the windows have already been replaced, but the front and back doors are yet to change.
0:54:39 > 0:54:44Paul has had loads of help from his friends, other tradesmen and his apprentice Toby,
0:54:44 > 0:54:48but he discovered that it wasn't just the lack of hours in the day
0:54:48 > 0:54:51that can hold up a refurbishment like this.
0:54:52 > 0:54:59I've tried to do this work around my day job, but the biggest factor about time has been money,
0:54:59 > 0:55:03getting the money together to buy skirting boards, paint, everything,
0:55:03 > 0:55:06so that's been the biggest difficulty really.
0:55:06 > 0:55:11What effect did that have on the initial £12,000 that Paul had to spend?
0:55:11 > 0:55:17I should imagine I've spent about £15,000 so far and I feel there's another 15 to 20 to spend,
0:55:17 > 0:55:21but that's because we're going to put a high-end kitchen in
0:55:21 > 0:55:25and some decent front doors and French doors downstairs.
0:55:25 > 0:55:29It's a big house and garden. It has eaten up the budget and then some.
0:55:29 > 0:55:35Apart from Paul still working full-time, another reason for the lengthy renovation might be
0:55:35 > 0:55:38that he has been a bit of a perfectionist.
0:55:38 > 0:55:45His high standards have meant the costs have risen from his original estimate and so has the timescale.
0:55:45 > 0:55:50I would have liked to have been in 12 months ago, but I'm really happy with the job and the finish.
0:55:50 > 0:55:53If Paul spends a total of 35,000,
0:55:53 > 0:55:57that, coupled with his initial purchase price of 41,000,
0:55:57 > 0:56:00will mean a total outlay here of £76,000
0:56:00 > 0:56:04to create a great, four-bedroom family home.
0:56:04 > 0:56:09What do two local property experts make of the work done so far?
0:56:11 > 0:56:15I think the work done up to now has been done to a very good standard.
0:56:15 > 0:56:21And I think the way that the accommodation has been laid out is probably the best format for it.
0:56:21 > 0:56:25Right decision to keep the kitchen on the living accommodation floor,
0:56:25 > 0:56:30rather than in the basement. The basement room has multiple uses,
0:56:30 > 0:56:36so, as the children grow older, that room becomes accommodating for all the family, not just one use.
0:56:36 > 0:56:42Paul's looking to move in and make it home, but how much rental income could it generate?
0:56:42 > 0:56:49Once finished, we would be able to rent this property for between £500 and £600 per calendar month.
0:56:49 > 0:56:54If it was available at this moment, you'd be looking at about £550 per calendar month.
0:56:54 > 0:57:00Based on a rent of £550 per calendar month, that's a very healthy annual yield of 8.5%.
0:57:00 > 0:57:05That's brilliant. I'm glad it can get that much. It's good for future reference.
0:57:05 > 0:57:09What about sale valuations once it's all finished?
0:57:09 > 0:57:13More than the £76,000 total that Paul will have invested?
0:57:13 > 0:57:17I think this property could be marketed for £95,000.
0:57:17 > 0:57:24The price in the current market would be between 115,000 to 130,000, dependent on time of sale.
0:57:24 > 0:57:27That's quite a broad range in valuations there.
0:57:27 > 0:57:33The first one was based on a similar nearby property's asking price, although that hasn't sold yet.
0:57:33 > 0:57:36Valuing properties is far from an exact science,
0:57:36 > 0:57:41but even that lower estimate would give Paul a pre-tax profit of £19,000,
0:57:41 > 0:57:45while the top end could mean a profit of 54,000.
0:57:45 > 0:57:48I like the second one a lot better!
0:57:48 > 0:57:54I just wonder - could Paul be tempted to sell if that offer was actually on the table?
0:57:54 > 0:57:59No matter how much it's worth, we'll be living here. There's too much blood, sweat and tears involved.
0:58:02 > 0:58:06That's it for today's show. Join us next time for more auction action
0:58:06 > 0:58:09- on Homes Under The Hammer. - Goodbye.- Goodbye.
0:58:30 > 0:58:33Subtitles by Red Bee Media Ltd