0:00:02 > 0:00:03Hello. Welcome to the show.
0:00:03 > 0:00:05We've both been dealing in property for many years now
0:00:05 > 0:00:08and have witnessed the fluctuations in the market.
0:00:08 > 0:00:12But through it all, we remain convinced of one thing.
0:00:12 > 0:00:15You can pick up some interesting buys at the auction.
0:00:39 > 0:00:45We've always been really excited by the concept of buying at auction.
0:00:45 > 0:00:48And it's true - the speed, the excitement
0:00:48 > 0:00:52and the chance for a real bargain make it a thing to try.
0:00:52 > 0:00:55So let's find out what got our buyers hot under the collar
0:00:55 > 0:00:57on today's show.
0:00:59 > 0:01:01This three-bed mid-terrace in Walthamstow
0:01:01 > 0:01:03needs a sorcerer's touch to shine.
0:01:03 > 0:01:06How are you going to work THAT into your budget?
0:01:06 > 0:01:09My husband, he knows some magics.
0:01:10 > 0:01:14Another mid-terrace in Stoke leaves me gobsmacked.
0:01:15 > 0:01:16Oh...
0:01:16 > 0:01:21And this barn in Cornwall, offers a touch of the tropical.
0:01:21 > 0:01:22You've even got your own palm trees.
0:01:22 > 0:01:27All I need now is a cocktail. Oh, thank you.
0:01:28 > 0:01:31All these properties were bought at auction.
0:01:31 > 0:01:33We find out who bought them and for how much
0:01:33 > 0:01:35when they went under the hammer.
0:01:40 > 0:01:42Well, I might be in east London today,
0:01:42 > 0:01:46but this feels more like a village than part of a big metropolis.
0:01:49 > 0:01:53Walthamstow's E17 postcode was once most famous
0:01:53 > 0:01:56for the name of a popular 1990s boyband
0:01:56 > 0:01:59with questionable taste in headgear.
0:01:59 > 0:02:02Now, however, it's a desirable location to live,
0:02:02 > 0:02:06with plenty of young families priced out of east and north London,
0:02:06 > 0:02:10heading over to take advantage of its burgeoning cafe culture
0:02:10 > 0:02:13and excellent tube links into town.
0:02:14 > 0:02:15# It's all right
0:02:15 > 0:02:18# It's all right
0:02:18 > 0:02:20# It's all right
0:02:20 > 0:02:22# It's really all right
0:02:22 > 0:02:23# It's all... #
0:02:23 > 0:02:26The property I'm here to see is more of a bus ride than a stroll
0:02:26 > 0:02:29to the tube, but it's in a more affordable
0:02:29 > 0:02:32part of the postcode. And I really like this little
0:02:32 > 0:02:36turn of the road which means you've got off-street parking here.
0:02:36 > 0:02:39The house itself is this three-bedroom terrace
0:02:39 > 0:02:42and it had a guide price of £190,000.
0:02:42 > 0:02:46And like this area, this 1950s, ex-local-authority property
0:02:46 > 0:02:48looks all right too.
0:02:48 > 0:02:49# ..It's all right
0:02:49 > 0:02:51# It's all right
0:02:51 > 0:02:54# It's all right... #
0:02:54 > 0:02:57Ooh, now, interestingly, you've got a lot of space outside,
0:02:57 > 0:03:00and you walk in, and it's a lot smaller than you would think.
0:03:00 > 0:03:04It certainly needs an overhaul. Very dated indeed.
0:03:04 > 0:03:07There's only one reception room on the downstairs floor
0:03:07 > 0:03:10and a kitchen, again very disappointing
0:03:10 > 0:03:13although it's quite a good size - almost the same size as next door.
0:03:13 > 0:03:15What's round here?
0:03:15 > 0:03:17Oh, we've got a downstairs bathroom.
0:03:17 > 0:03:23I'd like to think we could shift that upstairs and create more space.
0:03:23 > 0:03:26Therefore you would be able to have a little dining area around here.
0:03:26 > 0:03:29Hopefully, fingers crossed, we can do that.
0:03:29 > 0:03:30# With a little luck
0:03:30 > 0:03:32# With a little luck
0:03:32 > 0:03:35# We could shake it up
0:03:35 > 0:03:38# With a little luck
0:03:38 > 0:03:40# Oh, yeah... #
0:03:40 > 0:03:43Yes, this would benefit from a shake-up.
0:03:43 > 0:03:45There's a back lobby, which is a sort of lean-to.
0:03:45 > 0:03:49But if the bathroom was moved and it could all be knocked through,
0:03:49 > 0:03:51this could make a fabulous space.
0:03:51 > 0:03:55You might also consider opening up through into that living area.
0:03:55 > 0:03:58That might be a step too far for some,
0:03:58 > 0:04:00but having a living space separate from the kitchen
0:04:00 > 0:04:02can be a good thing.
0:04:02 > 0:04:06Either way, it's that old conundrum, to move the loo or not?
0:04:08 > 0:04:10So let's investigate up here.
0:04:10 > 0:04:12Well, there is a bedroom with a boiler there.
0:04:12 > 0:04:14I think I'd try and relocate that.
0:04:14 > 0:04:18Towards the back of the property here, yeah, a good-size double.
0:04:18 > 0:04:19A really nice room.
0:04:19 > 0:04:23And through here... Oh, oh, oh, oh. Yes, look.
0:04:23 > 0:04:26..it's a bathroom. THAT is really good news.
0:04:26 > 0:04:29And you can see all they've done is just pinched
0:04:29 > 0:04:31a little of the bedroom through here.
0:04:31 > 0:04:32I'm really pleased that's upstairs.
0:04:32 > 0:04:35That means downstairs, you can get rid of that bathroom
0:04:35 > 0:04:38and just completely go to town on that living space.
0:04:38 > 0:04:41Well, that's great news.
0:04:41 > 0:04:45The layout of the upstairs is just about an open-and-shut case.
0:04:45 > 0:04:47There's no need to really do anything
0:04:47 > 0:04:49other than upgrade and refurbish.
0:04:49 > 0:04:52The space upstairs might be a bit compromised
0:04:52 > 0:04:55because of the bathroom, but for families, it's living space
0:04:55 > 0:04:59downstairs that can really make all the difference.
0:04:59 > 0:05:03If there's somewhere for kids to play, well, all the better.
0:05:04 > 0:05:07Well, if ever there was a reason to buy a property,
0:05:07 > 0:05:09then this is it!
0:05:09 > 0:05:13Look at the size of the garden! It's overgrown, but it's massive.
0:05:13 > 0:05:16I think you get extra because you're on a bend in the road.
0:05:16 > 0:05:21Whatever the reason, this is just fabulous. Am I going over the top?
0:05:21 > 0:05:23Surely I have seen bigger gardens,
0:05:23 > 0:05:27but on an ex-local-authority estate in London,
0:05:27 > 0:05:31this is disproportionately big and a major, major selling point.
0:05:33 > 0:05:37Yes, look, it goes on and on, and it's all for you!
0:05:37 > 0:05:40Enough for your vegetable plot, your trampoline,
0:05:40 > 0:05:42your mini football pitch. Just everything.
0:05:42 > 0:05:46It's certainly enough space for an extension, should you want it.
0:05:46 > 0:05:49So with plenty of scope for improvement inside and out,
0:05:49 > 0:05:52it seems this house is brimming with possibilities.
0:05:52 > 0:05:55A local estate agent came along to tell us
0:05:55 > 0:05:59what she thought of this property - guided at £190,000.
0:06:03 > 0:06:07This property is absolutely fantastic for expansion.
0:06:07 > 0:06:09It's got a very good garden,
0:06:09 > 0:06:10offering excellent potential
0:06:10 > 0:06:13to extend to the rear and also into the loft.
0:06:13 > 0:06:16I would certainly suggest by far doing a loft extension
0:06:16 > 0:06:19to accommodate the first-floor bathroom into the third bedroom.
0:06:19 > 0:06:20Mm, a loft extension.
0:06:20 > 0:06:26So a chance to expand not just inside and outside but upwards too.
0:06:26 > 0:06:29Before we get too carried away, there will be a ceiling on how much
0:06:29 > 0:06:31you can increase the property's worth.
0:06:31 > 0:06:35So, would doing all this work add up to a profit?
0:06:35 > 0:06:37Keeping the existing layout to the first floor,
0:06:37 > 0:06:40I would value this property in the region of £270,000.
0:06:40 > 0:06:43By adding in a loft conversion to this property,
0:06:43 > 0:06:47I would estimate the value to be in the region of £285,000.
0:06:47 > 0:06:50By adding a rear extension to the property and a loft conversion,
0:06:50 > 0:06:53I would estimate the value to be in the region of £300,000.
0:06:53 > 0:06:56So after you've factored in build costs,
0:06:56 > 0:07:00neither extension would add greatly to your potential profit margin.
0:07:00 > 0:07:02It just makes a nice home to live in.
0:07:02 > 0:07:04But what about rental potential?
0:07:06 > 0:07:09The property with its current layout would rent
0:07:09 > 0:07:13in the region of £1,200 per calendar month.
0:07:13 > 0:07:16The property with an extended layout and a loft conversion would rent
0:07:16 > 0:07:20in the region of £1,300 to £1,400 per calendar month.
0:07:21 > 0:07:24So a good value family home in a decent area
0:07:24 > 0:07:28increasing in popularity, with an outstanding garden.
0:07:28 > 0:07:30Let's see who went for it at the auction.
0:07:33 > 0:07:38To lot 20. A three-bed, mid-terraced house
0:07:38 > 0:07:42not far from Walthamstow town.
0:07:42 > 0:07:43190 anywhere?
0:07:43 > 0:07:46190? 190 straightaway at the back.
0:07:46 > 0:07:48195.
0:07:48 > 0:07:52200. 205. 210.
0:07:53 > 0:07:55215. 220.
0:07:55 > 0:08:00225. 230. 235.
0:08:00 > 0:08:01240.
0:08:01 > 0:08:02241.
0:08:02 > 0:08:06242. 243?
0:08:06 > 0:08:07You must do.
0:08:07 > 0:08:09You'll regret it. 243?
0:08:09 > 0:08:13242, on my right at the back.
0:08:13 > 0:08:15243 elsewhere?
0:08:15 > 0:08:19If not, 242 first time. Second time.
0:08:20 > 0:08:23Third and last time. If you're all done...
0:08:23 > 0:08:25- GAVEL BANGS - Sold - 242 at the back. Well done.
0:08:25 > 0:08:29Wow! For £52,000 over the guide price,
0:08:29 > 0:08:34for £242,000, the new owners of the three-bed house in Walthamstow
0:08:34 > 0:08:37are married couple Kristina and Agris.
0:08:37 > 0:08:39Originally from Estonia, Agris is a plumber,
0:08:39 > 0:08:43and Kristina is a beauty therapist.
0:08:43 > 0:08:46She is on maternity leave after the arrival of their first child,
0:08:46 > 0:08:49eight-month-old baby Albert.
0:08:49 > 0:08:53While Agris kept an eye on Albert, I caught up with Kristina
0:08:53 > 0:08:56to find out about their plans for their new purchase.
0:08:56 > 0:08:59- Kristina, congratulations. - Thank you.
0:08:59 > 0:09:00So tell me all about the story,
0:09:00 > 0:09:03which has led you up to the sale of this property.
0:09:03 > 0:09:09We had another house which we refurbished. We sold it a year ago.
0:09:09 > 0:09:11So where have you been living for the last year,
0:09:11 > 0:09:12if you sold it a year ago?
0:09:12 > 0:09:17We are just renting at the moment. Just in the area.
0:09:17 > 0:09:21- So did you view this prior to auction?- We've seen it just once.
0:09:21 > 0:09:22In my mind, it was a bit different.
0:09:22 > 0:09:25Ah, so what's it like now you've seen it again?
0:09:25 > 0:09:28A little bit disappointed? Is it better than you expect?
0:09:28 > 0:09:32I'm happy that, for example, we can extend 6m
0:09:32 > 0:09:37on the ground floor of the house, because we have a very big garden.
0:09:37 > 0:09:41So we have this very good opportunity.
0:09:41 > 0:09:43So they are planning to extend.
0:09:43 > 0:09:45Well, there is certainly room, and I can see why you'd want to,
0:09:45 > 0:09:48since it's going to be their family home.
0:09:48 > 0:09:51So what else are they planning to do down here to improve the space?
0:09:54 > 0:09:58First of all, we're going to remove the bathroom downstairs,
0:09:58 > 0:10:02and basically it's going to be all open space.
0:10:02 > 0:10:03All going to be open plan?
0:10:03 > 0:10:04- Yeah.- Tell me what you'll do upstairs.
0:10:04 > 0:10:06How are you going to change the space?
0:10:06 > 0:10:11There is a bathroom, but it's just inside the room,
0:10:11 > 0:10:15so basically, we'll remove it and make the room bigger.
0:10:15 > 0:10:18So we'll put the bathroom where the little room is.
0:10:18 > 0:10:21So we're going to make, instead of three rooms,
0:10:21 > 0:10:23we'll make two rooms and a bathroom.
0:10:23 > 0:10:26So basically we need one more room
0:10:26 > 0:10:28to make this house like a family house.
0:10:28 > 0:10:31So we're going to put it upstairs to the loft.
0:10:31 > 0:10:37And it's going to be a third room, like maybe a master bedroom upstairs.
0:10:37 > 0:10:41So what sort of budget are you looking at for the work?
0:10:41 > 0:10:44Oh, about 30 or 40.
0:10:44 > 0:10:4530 to 40,000?
0:10:45 > 0:10:48They're quite expensive, loft conversions.
0:10:48 > 0:10:51How are you going to work THAT into your budget?
0:10:51 > 0:10:54My husband he knows some magics.
0:10:54 > 0:10:56He knows some magics? I love that!
0:10:56 > 0:10:59So he's got some sneaky people in the trade that he knows a well.
0:10:59 > 0:11:01- Yeah.- That always helps.
0:11:01 > 0:11:03# Magic
0:11:03 > 0:11:05# It's a kind of magic... #
0:11:07 > 0:11:08LUCY CHUCKLES
0:11:08 > 0:11:11Magic Agris and his friends in the trade.
0:11:11 > 0:11:13Well, that makes the budget
0:11:13 > 0:11:16and the plans sound a little bit more feasible.
0:11:16 > 0:11:18They have a timescale of three to four months,
0:11:18 > 0:11:21during which Kristina might skip off back to Estonia
0:11:21 > 0:11:25with little Albert to escape the dust and the mess.
0:11:25 > 0:11:27Yes, sensible woman.
0:11:27 > 0:11:32I do have one worry, though - they did pay 52 grand over the guide price.
0:11:32 > 0:11:35Add another £40,000 for renovations.
0:11:35 > 0:11:41Well, then, that would make their total investment go up to £282,000!
0:11:42 > 0:11:45Do you think this house will be worth it at the end of the day?
0:11:45 > 0:11:48I mean, there is a ceiling price on a property like this.
0:11:48 > 0:11:53I'm sure it will. I'm sure. We're going to do it for us firstly
0:11:53 > 0:11:56and we're going to put everything what we like.
0:11:56 > 0:11:58So you think if you like it so much,
0:11:58 > 0:12:00EVERYONE will like it so much?
0:12:00 > 0:12:02- Yes.- Kristina, it's been lovely meeting you.
0:12:02 > 0:12:05- Good luck with this project. - Thank you.- Thank you.
0:12:06 > 0:12:11So, a family home for Kristina, Agris and lovely little Albert.
0:12:11 > 0:12:13I am so pleased for them.
0:12:13 > 0:12:17And I'm sure they will turn it into a wonderful house.
0:12:17 > 0:12:19You can find out how it goes later in the show.
0:12:25 > 0:12:29Well, from that endless back garden to even more fantastic green spaces.
0:12:29 > 0:12:33To the north-east of Stoke city centre is Sneyd Green,
0:12:33 > 0:12:36a popular residential area close to Hanley.
0:12:36 > 0:12:40It's named after the Sneyd family, prominent local landowners.
0:12:40 > 0:12:43And look at this peaceful, rural scene.
0:12:43 > 0:12:46Central Forest Park is a large nature reserve
0:12:46 > 0:12:49which was created here in the 1970s.
0:12:49 > 0:12:51It's on the site of a former coal heap
0:12:51 > 0:12:54and has become a beautiful local feature
0:12:54 > 0:12:57that has attracted wildlife and property buyers to the area
0:12:57 > 0:12:59for years.
0:12:59 > 0:13:02Well, I am close to Central Forest Park,
0:13:02 > 0:13:06which makes this a really popular area for rentals
0:13:06 > 0:13:08and also first-time buyers.
0:13:08 > 0:13:12I'm here to see a mid-terrace very traditional property.
0:13:12 > 0:13:13Two bedrooms.
0:13:13 > 0:13:16Had a guide price of £45,000 plus.
0:13:16 > 0:13:17What's it like inside?
0:13:17 > 0:13:19Let's take a look.
0:13:21 > 0:13:24Oh, looks all right at first glance.
0:13:24 > 0:13:25Into your front sitting room.
0:13:25 > 0:13:28Very traditional kind of layout.
0:13:28 > 0:13:31Set for a dinner party no less!
0:13:31 > 0:13:34And nicely decorated, fairly modernish wallpaper.
0:13:34 > 0:13:36Dated fireplace.
0:13:36 > 0:13:39Through to your rear sitting area.
0:13:39 > 0:13:41Oh, dear.
0:13:41 > 0:13:44First thing that strikes you when you come in here
0:13:44 > 0:13:46is some pretty nasty signs of damp.
0:13:46 > 0:13:48We'll come back to that. In terms of the room, though,
0:13:48 > 0:13:49it's a nice size.
0:13:49 > 0:13:52Lots of light coming in through the windows, so we like that.
0:13:52 > 0:13:54Another classic fireplace!
0:13:54 > 0:13:58Pretty traditional design, as you might have imagined.
0:13:58 > 0:14:00The kitchen...
0:14:00 > 0:14:03basically built in to an extension on the back, here.
0:14:03 > 0:14:04Not in bad condition, though.
0:14:04 > 0:14:07Although I think it'd be worth spending a bit of money.
0:14:07 > 0:14:09And then bathroom at the end.
0:14:09 > 0:14:12Very traditional sort of layout for this kind of property.
0:14:12 > 0:14:14Bathroom actually not in bad condition.
0:14:14 > 0:14:18So all in all, it's a good house.
0:14:18 > 0:14:20This place was recently tenanted
0:14:20 > 0:14:22and it wouldn't need too much tweaking
0:14:22 > 0:14:25to get it back on the rental market.
0:14:25 > 0:14:27Hold on, though, not everything about this place
0:14:27 > 0:14:29is looking quite so rosy.
0:14:32 > 0:14:35Now, what's interesting about this particular damp
0:14:35 > 0:14:38is that it's on some very strange walls.
0:14:38 > 0:14:42You would normally expect damp on the exterior walls of the property,
0:14:42 > 0:14:43basically water coming in.
0:14:43 > 0:14:46This one, right, which is really damp,
0:14:46 > 0:14:47is an internal wall.
0:14:47 > 0:14:49And that one there is the wall
0:14:49 > 0:14:52that joins onto the neighbouring property.
0:14:52 > 0:14:53So...
0:14:53 > 0:14:55My guess...
0:14:55 > 0:14:58is it's coming down rather than through.
0:14:58 > 0:14:59Let's have a look.
0:15:02 > 0:15:05Any clues in here?
0:15:05 > 0:15:08Cupboards, always a good place to check.
0:15:08 > 0:15:11And, wow, yes!
0:15:11 > 0:15:15Right, well, you can actually see right up into the loft space there,
0:15:15 > 0:15:19and, sure enough, there's daylight.
0:15:19 > 0:15:21That's never good!
0:15:21 > 0:15:23Water is coming in, going dribble, dribble, dribble downstairs,
0:15:23 > 0:15:25on this wall.
0:15:25 > 0:15:27There's your problem. Probably cost...
0:15:27 > 0:15:28not very much to sort out.
0:15:30 > 0:15:31He says hopefully!
0:15:31 > 0:15:35# I never cared much for moonlit skies
0:15:35 > 0:15:39# I never winked back at fireflies
0:15:39 > 0:15:43# But now that the stars are in your eyes
0:15:43 > 0:15:48# I'm beginning to see the light. #
0:15:48 > 0:15:51Hmm, so I'm seeing the light as to why this property
0:15:51 > 0:15:54was guided at the relatively low price for the area
0:15:54 > 0:15:56of £45,000 plus.
0:15:56 > 0:16:01Reroofing and tackling the damp can be expensive and time-consuming.
0:16:01 > 0:16:03And there's also uncertainty
0:16:03 > 0:16:06of what long-term damage might have been done.
0:16:08 > 0:16:12On the plus side, the two bedrooms are a decent size
0:16:12 > 0:16:15and appear to be in a very serviceable condition.
0:16:17 > 0:16:20At the back of the property, a good bonus,
0:16:20 > 0:16:23rear access along this little lane here,
0:16:23 > 0:16:26complete with original cobbles, which is cute.
0:16:26 > 0:16:30While I'm out here, a chance to see that there's a little patio area,
0:16:30 > 0:16:34which is quite nice, but also an opportunity to look at the roof.
0:16:34 > 0:16:36Not only have you got that hole,
0:16:36 > 0:16:40it looks like the roof itself is in a bit of a poor state.
0:16:40 > 0:16:43Thankfully, the same isn't true of the extension,
0:16:43 > 0:16:46which looks to be in much better condition.
0:16:46 > 0:16:49But it obviously is going to be a lot more modern.
0:16:49 > 0:16:51So, all in all, a bit of remedial work to be done
0:16:51 > 0:16:53and it needs to be done quick.
0:16:53 > 0:16:55# Get your back up off the wall
0:16:55 > 0:16:57# Come on
0:16:57 > 0:16:58# Get down on it
0:16:58 > 0:17:00# Come on and get down on it
0:17:00 > 0:17:02# If you really want it Get down on it
0:17:02 > 0:17:04# You got to feel it... #
0:17:04 > 0:17:08Yes, a little speed is needed to get this house watertight again.
0:17:08 > 0:17:11And along with the work on the roof,
0:17:11 > 0:17:13not all the windows are double glazed,
0:17:13 > 0:17:15so a few of those will need doing as well.
0:17:15 > 0:17:19But once that's done, and that pesky damp is sorted,
0:17:19 > 0:17:21really this is a straightforward refurbishment
0:17:21 > 0:17:24that can be turned around relatively quickly.
0:17:26 > 0:17:29But what does a local property expert make
0:17:29 > 0:17:31of this two-bed terraced house?
0:17:31 > 0:17:33First impressions are
0:17:33 > 0:17:38that it's really mainly cosmetic improvements that are required.
0:17:38 > 0:17:41The only other obvious things are there are some signs of damp
0:17:41 > 0:17:43which should be investigated further.
0:17:43 > 0:17:46And we do have a bathroom which leads straight from the kitchen,
0:17:46 > 0:17:48which isn't ideal.
0:17:48 > 0:17:50The layout may not be ideal,
0:17:50 > 0:17:54but it's pretty conventional for these types of houses.
0:17:54 > 0:17:58So, as it stands, what is the best way to maximise profit
0:17:58 > 0:18:01on a house that was guided at £45,000 plus?
0:18:02 > 0:18:07I think a new kitchen, a new bathroom, possibly fireplaces,
0:18:07 > 0:18:10really to appeal to that first-time buyer market.
0:18:10 > 0:18:13After those required works are done,
0:18:13 > 0:18:17I would anticipate a resale value in the region of £70,000.
0:18:17 > 0:18:19And rental values?
0:18:19 > 0:18:22I would anticipate a maximum rental income
0:18:22 > 0:18:26in the region of £450 per calendar month.
0:18:30 > 0:18:33Well, it's a nice enough house in a good rental area.
0:18:33 > 0:18:36And apart from the damp, not much to do to get it rental ready.
0:18:36 > 0:18:40Let's see who went for it when it went under the hammer.
0:18:40 > 0:18:42It was near the end of the auction
0:18:42 > 0:18:46that the two-bed terrace house went up for sale.
0:18:46 > 0:18:49Lot 96. Guiding in at 45.
0:18:49 > 0:18:50Shall we start this one at 40?
0:18:50 > 0:18:5340 bid. Thank you. At £40,000.
0:18:53 > 0:18:5641, 41 bid. 41, 42?
0:18:56 > 0:18:5842, 43.
0:18:58 > 0:19:0344? 44. 45 seated, at 45 seated.
0:19:03 > 0:19:06New bidder, 46.
0:19:06 > 0:19:0847? 47.
0:19:08 > 0:19:1048? 48.
0:19:10 > 0:19:1149?
0:19:12 > 0:19:1549. 50?
0:19:15 > 0:19:18Half. 49.5.
0:19:18 > 0:19:2050?
0:19:20 > 0:19:2350. Another half? 50.5?
0:19:23 > 0:19:30No? £50,500, then. Seated left at £50,500.
0:19:30 > 0:19:34£50,500 once. £50,500 twice.
0:19:34 > 0:19:37Third and final time, £50,500.
0:19:37 > 0:19:38You bought it, well done.
0:19:40 > 0:19:42And sneaking in near the end there,
0:19:42 > 0:19:45the successful bid of £50,500 was made by local
0:19:45 > 0:19:49self-employed business consultant David, who hopes
0:19:49 > 0:19:54this traditional mid-terrace will stoke his growing rental portfolio.
0:19:54 > 0:19:57- David, very good to meet you. - Likewise, Martin.- Congratulations.
0:19:57 > 0:20:01- Is this something you've done before?- It's the third one.
0:20:01 > 0:20:04- How have the other two gone? - Very well, actually.
0:20:04 > 0:20:07More by luck than by judgment, I think, but yes.
0:20:07 > 0:20:09What attracted you to this particular house?
0:20:09 > 0:20:11When I came into it,
0:20:11 > 0:20:15because I'd viewed all the houses that we'd bought at auction,
0:20:15 > 0:20:17I think that's really important,
0:20:17 > 0:20:21this one I thought needed not a lot doing to it.
0:20:21 > 0:20:23It's something that can be refurbished,
0:20:23 > 0:20:26I can do some of the work myself. And it would be good to go.
0:20:26 > 0:20:30- Has it turned out as you imagined? - Not exactly.
0:20:30 > 0:20:34At the point at which, in trying to get a mortgage for the house,
0:20:34 > 0:20:37the surveyor came in and said we needed to get a damp survey done.
0:20:37 > 0:20:39It was something I didn't expect.
0:20:39 > 0:20:41The process then of when that happened was
0:20:41 > 0:20:44you'd been to the auction, the hammer had gone down,
0:20:44 > 0:20:47you've exchanged contracts, committed to buy it and then
0:20:47 > 0:20:51you get a mortgage survey, which is the one the way a lot of people do.
0:20:51 > 0:20:55- Yes.- And that highlighted a problem. - Yes.- So where does that leave you?
0:20:55 > 0:20:58It delayed the mortgage, which cost us money in the end,
0:20:58 > 0:21:01because we went beyond the 28 days from...
0:21:01 > 0:21:02Yes, I'm afraid so.
0:21:02 > 0:21:05The reason I'm so horrified is
0:21:05 > 0:21:08that most auction houses give you 28 days to complete
0:21:08 > 0:21:11the purchase or you could be liable to stiff penalties.
0:21:11 > 0:21:14Remember, when the hammer goes down, there's no going back.
0:21:14 > 0:21:15You have bought it.
0:21:17 > 0:21:20I'd have to say, that was a learn, because in previous houses,
0:21:20 > 0:21:24I'd thought that if that happened, it was the end of the world.
0:21:24 > 0:21:28It wasn't the end of the world, but...when the clock stops ticking, as it were,
0:21:28 > 0:21:30then it starts to cost money.
0:21:30 > 0:21:32And how many days late were you?
0:21:32 > 0:21:36- In the end, we were five days late. - And how much did that cost?
0:21:36 > 0:21:39- It cost us £150. I think we were quite fortunate.- Wow.
0:21:39 > 0:21:43- What was that for?- That was for serving a notice to complete
0:21:43 > 0:21:45and interest on the outstanding balance.
0:21:45 > 0:21:48Right, wow. So it could have been a lot worse.
0:21:48 > 0:21:51Yes, and had the mortgage company not released the money at that point,
0:21:51 > 0:21:52we'd have had a big problem.
0:21:52 > 0:21:54What's the deal on the damp-proofing?
0:21:54 > 0:21:57The deal on the damp-proof is within three months,
0:21:57 > 0:22:01I have to correct it all with a certified and ensured guarantee.
0:22:01 > 0:22:05Well, that was a little bit too tight for comfort.
0:22:05 > 0:22:08Potentially, David could have lost the house
0:22:08 > 0:22:12and his deposit for failing to meet the 28-day deadline.
0:22:12 > 0:22:14I imagine there were a few sleepless nights
0:22:14 > 0:22:16and a lot of stress.
0:22:16 > 0:22:18But he's all sorted now
0:22:18 > 0:22:22and he can move forward on property number three.
0:22:23 > 0:22:25What are you going to do to the house?
0:22:25 > 0:22:28Well, some of that depends on what needs doing for the damp course,
0:22:28 > 0:22:31but the house is in pretty good condition.
0:22:31 > 0:22:32It's pretty clean and decent.
0:22:32 > 0:22:35The annoying thing is, it's going to cause a bit of a mess, isn't it?
0:22:35 > 0:22:38Yes, it is, because if we have to take the plaster off
0:22:38 > 0:22:41to a metre up the walls, then it means also getting
0:22:41 > 0:22:46all the paper off the walls, which is a...bit of a surprise.
0:22:46 > 0:22:51And hard work. Other than that, the kitchen will need a bit of work.
0:22:51 > 0:22:54The bathroom has got new sanitary ware in it,
0:22:54 > 0:22:57but it needs the decor sorting out.
0:22:57 > 0:23:00Remedial works elsewhere? The roof, for instance.
0:23:00 > 0:23:03The roof, yes, the surveyor pointed that out.
0:23:03 > 0:23:04It wasn't a condition of the mortgage,
0:23:04 > 0:23:07but we were asked to do that as soon as the house was completed on.
0:23:07 > 0:23:12- So what's the budget? - The budget is up to about £10,000.
0:23:12 > 0:23:15- Does that include the damp? - Including the damp and the roof.
0:23:15 > 0:23:17So what is the timescale?
0:23:17 > 0:23:20- I'd love to say, in four weeks' time, it's ready to rent.- Wow!
0:23:20 > 0:23:23- Including all the damp-proof and everything?- Yes.
0:23:23 > 0:23:26And that probably has affected it a bit for us.
0:23:26 > 0:23:31So I would hope in two months' time from now, we'll have people in.
0:23:31 > 0:23:32- Congratulations. - Thank you very much.
0:23:32 > 0:23:36A few hiccups along the way, but it looks like they are sorted.
0:23:36 > 0:23:39- Hopefully. We'll find out, won't we?- Good luck with it.
0:23:39 > 0:23:40Thank you very much.
0:23:41 > 0:23:46Well, David there, I think, having a very lucky escape.
0:23:46 > 0:23:49And it just goes to show the importance of thoroughly
0:23:49 > 0:23:52checking out a property before you bid at the auction,
0:23:52 > 0:23:56especially if you're hoping to get a mortgage on it.
0:23:56 > 0:23:59In terms of sorting it out, well, once he's got the damp sorted,
0:23:59 > 0:24:01it should be plain sailing.
0:24:01 > 0:24:04You can find out how he gets on later in the show.
0:24:04 > 0:24:08Still to come, a Cornish barn needing a complete overhaul.
0:24:08 > 0:24:11Perfect for someone with plenty of time on their hands.
0:24:11 > 0:24:13- "Cornishmen do it dreckley."- Yeah?
0:24:13 > 0:24:16Well, it's a little bit slower in Spanish - manana.
0:24:16 > 0:24:18It will get done eventually.
0:24:19 > 0:24:23But back in Stoke, time has run out for David.
0:24:23 > 0:24:25I've got to the point where I'm thinking,
0:24:25 > 0:24:27"Oh, no, I need to be out of this place."
0:24:29 > 0:24:33First, we're back in Walthamstow, east London,
0:24:33 > 0:24:36where, earlier in the programme, we met Kristina,
0:24:36 > 0:24:39her husband, Agris, and their little baby, Albert.
0:24:39 > 0:24:41The couple, originally from Estonia,
0:24:41 > 0:24:44had been living in rented accommodation
0:24:44 > 0:24:48after selling their previous house, and this ex-local-authority house
0:24:48 > 0:24:51is where they decided to create a new family home.
0:24:51 > 0:24:55They paid 242,000, which was a whopping 52 grand over
0:24:55 > 0:24:57the guide price.
0:24:57 > 0:25:00The three-bed house needed a lot of vision,
0:25:00 > 0:25:02but that is exactly what this couple have.
0:25:02 > 0:25:06They planned an extension into the huge garden and a loft conversion,
0:25:06 > 0:25:09but with so much spent on the house already,
0:25:09 > 0:25:13I was a bit worried about how much they were planning to invest.
0:25:13 > 0:25:15About 30 or 40.
0:25:15 > 0:25:17- £30,000 to £40,000?- Yes.
0:25:17 > 0:25:19They're quite expensive, loft conversions,
0:25:19 > 0:25:22how are you going to work that into your budget?
0:25:22 > 0:25:26- My husband, he knows some magics! - He knows some magics?
0:25:26 > 0:25:27I love that,
0:25:27 > 0:25:30so he's got some sneaky people in the trade that he knows very well?
0:25:30 > 0:25:31- Yeah.- That always helps.
0:25:31 > 0:25:34Well, let's hope they're not from the Tommy Cooper school of magic,
0:25:34 > 0:25:38cos on that budget, it was certainly going to take
0:25:38 > 0:25:41some sleight of hand to pull this rabbit out the hat!
0:25:41 > 0:25:44But as Kristina is a beauty therapist, and Agris a plumber,
0:25:44 > 0:25:47maybe together they can give this place the make over it deserves
0:25:47 > 0:25:50in a timescale of four months.
0:25:52 > 0:25:54We came back to see what they'd achieved
0:25:54 > 0:25:57just under five months later.
0:25:58 > 0:26:02And while the front doesn't look any different, just have a look inside.
0:26:08 > 0:26:12Firstly, the couple have taken advantage of that huge garden
0:26:12 > 0:26:17and conjured up this fantastic new kitchen-diner!
0:26:17 > 0:26:20They've also managed to turn that old downstairs bathroom
0:26:20 > 0:26:22into a stylish, new and lovely shower room.
0:26:25 > 0:26:28The dated lounge is now open and family-friendly.
0:26:30 > 0:26:33And it's not only downstairs where Agris has managed
0:26:33 > 0:26:34to wave a magic wand.
0:26:34 > 0:26:37At the top of the house, a loft conversion means there is
0:26:37 > 0:26:40a lovely, airy, master bedroom.
0:26:43 > 0:26:48So, are they enjoying this fabulous new family home?
0:26:48 > 0:26:51Oh, it's amazing, because now we have
0:26:51 > 0:26:57just a lot of space for the baby as well to run around and a cat.
0:26:57 > 0:27:02It is also easier for me to cook and just to do some stuff.
0:27:04 > 0:27:07If the ground floor and new bedroom weren't spacious enough,
0:27:07 > 0:27:10they've also done a bit of rejigging on the first floor.
0:27:10 > 0:27:13They've turned the rear, smaller bedroom
0:27:13 > 0:27:16into a good-looking family bathroom.
0:27:16 > 0:27:19And the space once claimed by the old bathroom
0:27:19 > 0:27:22has been added to the front bedroom.
0:27:26 > 0:27:29With bedroom two also renovated,
0:27:29 > 0:27:32all these changes mean the house still has three bedrooms,
0:27:32 > 0:27:37but the flow and size of the rooms give the house an airy feel.
0:27:38 > 0:27:41Now the garden. Nice job!
0:27:41 > 0:27:46I personally was in a tent for a month, outside, in the garden!
0:27:46 > 0:27:50And another builder the same,
0:27:50 > 0:27:56but luckily, before the cold came, we already were ready to move in.
0:27:57 > 0:28:01The garden with its deck is a good size, even with the extension,
0:28:01 > 0:28:04that incidentally, didn't need planning permission
0:28:04 > 0:28:07as the changes fell under permitted development regulations.
0:28:07 > 0:28:09As planned, Kristina and baby Albert
0:28:09 > 0:28:12hotfooted it to Estonia for a nice little break,
0:28:12 > 0:28:15so they did avoid the dust and the nights under canvas.
0:28:15 > 0:28:20I'm never a happy camper either, so I'm with Kristina on this one.
0:28:21 > 0:28:23She helps me a lot with deciding what we're going to do
0:28:23 > 0:28:25with this room, which I know how to do,
0:28:25 > 0:28:31but I sometimes can't see the things that Kristina can see.
0:28:31 > 0:28:34So she helps me out with design.
0:28:34 > 0:28:36It's a great-looking home, and Agris
0:28:36 > 0:28:39and his friends took only four months to do everything,
0:28:39 > 0:28:43from the new extension to the loft conversion, plastering,
0:28:43 > 0:28:46plumbing, new ceilings... in fact, everything!
0:28:46 > 0:28:48Agris has certainly worked his magic on this place,
0:28:48 > 0:28:54but did he work the same trickery on his £30,000 to £40,000 budget?
0:28:54 > 0:28:59We spent around 35, we don't include my work -
0:28:59 > 0:29:03electrician, plumbing, every night supplying materials.
0:29:03 > 0:29:09Knowing how much work we did for this house and how much we spent...
0:29:09 > 0:29:13I think some of that magic, maybe somebody can do better.
0:29:15 > 0:29:21# Oh, oh, oh, it's magic You know
0:29:22 > 0:29:27# Never believe it's not so... #
0:29:30 > 0:29:34It's so relaxed that everything is just in the past
0:29:34 > 0:29:39and now we need just to enjoy the house.
0:29:40 > 0:29:45This is first and foremost a home and not for a quick resale,
0:29:45 > 0:29:48and there is no doubt this is a lovely transformation.
0:29:48 > 0:29:52If you add their 242,000 purchase price
0:29:52 > 0:29:55to that £35,000 refurbishment cost,
0:29:55 > 0:29:59it brings their total spend to 277,000.
0:29:59 > 0:30:03Now, I think they've done well to do so much for that budget.
0:30:03 > 0:30:06But what do two estate agents make of the couple's hard work?
0:30:08 > 0:30:10I like the size of the rooms.
0:30:10 > 0:30:12I do like the layout
0:30:12 > 0:30:16and I think it's been renovated to a very high standard.
0:30:17 > 0:30:20'I've looked around the property, it's got a fantastic aura about it,
0:30:20 > 0:30:23'the way it flows, superb, one of the best properties I've seen
0:30:23 > 0:30:26'for a little while in this price bracket.'
0:30:26 > 0:30:28I think the real selling features of this property are actually
0:30:28 > 0:30:31just the way it feels, which as soon as you walk in and walk around,
0:30:31 > 0:30:35it's very airy, it creates a complete lifestyle feeling.
0:30:36 > 0:30:41Agris and Kristina now have a lovely open-plan family home,
0:30:41 > 0:30:44but if they do decide to move on, what sort of profit could they make
0:30:44 > 0:30:46if they sold the house?
0:30:46 > 0:30:50Remember, their total spend is 277,000.
0:30:52 > 0:30:54I would resell the property,
0:30:54 > 0:30:59the price in between £290,000 to £300,000.
0:30:59 > 0:31:05This property could resell for around £350,000 in its present state.
0:31:05 > 0:31:09These two very differing valuations mean that Agris and Kristina
0:31:09 > 0:31:13could make a possible pre-tax profit of between
0:31:13 > 0:31:16£13,000 to £73,000.
0:31:16 > 0:31:22We made this house for ourselves, so it's just great to know that
0:31:22 > 0:31:25we can sell with a profit,
0:31:25 > 0:31:29but now we will stay and live - how long, we don't know.
0:31:32 > 0:31:37It is so good to know that Agris's hard work and living under canvas
0:31:37 > 0:31:40in a tent has been rewarded, but for this family,
0:31:40 > 0:31:43the joy of this house doesn't have anything to do with money.
0:31:43 > 0:31:49We still have to get used to ourselves that we have so much space
0:31:49 > 0:31:54for ourselves and Albert, so it's just pleasing to us that we can give
0:31:54 > 0:32:01him the things everybody has to have in their life, so very well pleased.
0:32:09 > 0:32:14Today, I'm in Cornwall in St Day, about two miles from Redruth,
0:32:14 > 0:32:18and what am I here to see? Well, it's a barn with land.
0:32:18 > 0:32:22How much do you think that will cost around here? 200,000, 150,000?
0:32:22 > 0:32:28Maybe 100,000? Nope, the guide price was 50,000 to 80,000 quid.
0:32:28 > 0:32:31St Day is a pretty little village,
0:32:31 > 0:32:35and the position behind the post office off the main street is handy.
0:32:35 > 0:32:40So, that guide price would be good for nearly any plot and barn.
0:32:41 > 0:32:46But this isn't just any old barn, it's a barn that comes
0:32:46 > 0:32:48with full planning permission
0:32:48 > 0:32:51for conversion into a two-bedroom dwelling.
0:32:51 > 0:32:54Now, around here, something like that's going to sell for around
0:32:54 > 0:32:57the £175,000-185,000 mark,
0:32:57 > 0:33:01so suddenly THIS could be a bit of a money-spinner.
0:33:05 > 0:33:09Well, at the moment, you'll have to use your imagination,
0:33:09 > 0:33:11because what you've basically got is a shell.
0:33:11 > 0:33:14But I love some of the original materials in here,
0:33:14 > 0:33:17some of this old wood - it'd be great to have that
0:33:17 > 0:33:20treated for woodworm or whatever, but keep it.
0:33:20 > 0:33:22Similarly with these beams and all this stone.
0:33:22 > 0:33:24The issues you're going to have?
0:33:24 > 0:33:27Damp proofing, both on the floor and the walls,
0:33:27 > 0:33:30services, such as electricity, gas, water.
0:33:30 > 0:33:33Then the actual structure of the building, what's that like?
0:33:33 > 0:33:35It seems pretty solid.
0:33:35 > 0:33:36It's going to take a bit of effort,
0:33:36 > 0:33:40but you could end up with something really, really special.
0:33:44 > 0:33:46It does look a little snug down here,
0:33:46 > 0:33:49but there is a second floor I can't access today,
0:33:49 > 0:33:52so there's ample room for two bedrooms.
0:33:52 > 0:33:54The plans even have space on the ground floor
0:33:54 > 0:33:56for a downstairs loo,
0:33:56 > 0:33:58which, I think, is a little ambitious.
0:33:58 > 0:34:00I always like to see a practical downstairs loo,
0:34:00 > 0:34:02but in a property this size,
0:34:02 > 0:34:05I think I could manage to nip upstairs to the family bathroom.
0:34:05 > 0:34:11So, cute and compact on the inside. What about the outside?
0:34:11 > 0:34:13But the fun doesn't there - through this little gate
0:34:13 > 0:34:15from the courtyard just in front of the barn here
0:34:15 > 0:34:19leads you through to this fairly sizable garden, so that's good news.
0:34:19 > 0:34:21It gets better, though, because there are two garages there
0:34:21 > 0:34:24and planning permission has been granted.
0:34:24 > 0:34:25It's only outline planning permission,
0:34:25 > 0:34:27but planning permission nevertheless,
0:34:27 > 0:34:29for the creation of another dwelling.
0:34:29 > 0:34:30So suddenly,
0:34:30 > 0:34:36this lot is looking incredibly potentially profitable indeed.
0:34:36 > 0:34:38You've even got your own palm trees.
0:34:38 > 0:34:40All I need now is a cocktail...
0:34:40 > 0:34:42Oh, thank you.
0:34:43 > 0:34:44(It's a milkshake.)
0:34:44 > 0:34:47..and Club Tropicana playing in the background.
0:34:47 > 0:34:48Perfect.
0:34:48 > 0:34:50MUSIC: "Club Tropicana" by Wham!
0:34:54 > 0:34:58Uh, before you go-go, it's reality check time.
0:34:58 > 0:35:01It's all very well, sipping cocktails on the Cornish Riviera.
0:35:01 > 0:35:04But they will have to wait.
0:35:04 > 0:35:08There are a few issues you would need to ponder, like access
0:35:08 > 0:35:11and getting building materials in, for one.
0:35:11 > 0:35:13And there may be a party wall issue to sort out.
0:35:13 > 0:35:17However, for a guide price of between £50,000-£80,000,
0:35:17 > 0:35:20I think it makes a really interesting lot.
0:35:20 > 0:35:23Does the agent who sold it rate the barn and the plans?
0:35:24 > 0:35:27This is a fantastic dual component auction lot,
0:35:27 > 0:35:28so it's really exciting.
0:35:28 > 0:35:30One is a building plot, effectively,
0:35:30 > 0:35:33for a two-, maybe three-bedroom detached house,
0:35:33 > 0:35:36along with a rather attractive period barn
0:35:36 > 0:35:38that's attached to the back of the post office.
0:35:38 > 0:35:40Let's talk figures.
0:35:40 > 0:35:42Two-bedroomed properties in St Day
0:35:42 > 0:35:47will typically fetch between £165,000 and £185,000.
0:35:47 > 0:35:49For a property in reasonable spec, you could expect
0:35:49 > 0:35:53somewhere in the region of £750pcm for the rental.
0:35:53 > 0:35:56Those numbers sound pretty encouraging, but don't forget,
0:35:56 > 0:35:58although planning permission is in place for the barn,
0:35:58 > 0:36:02you would still have to get detailed plans approved for the plot.
0:36:02 > 0:36:03So it's never wise to assume
0:36:03 > 0:36:06it would be entirely straightforward.
0:36:06 > 0:36:09Let's see who went for this intriguing lot at the auction.
0:36:15 > 0:36:16Lot 76.
0:36:16 > 0:36:19Who's going to kick us off at 80? Straight in, 80?
0:36:19 > 0:36:21Bottom end of the guide, 50. Two.
0:36:21 > 0:36:2450, we're in. 50, we're away.
0:36:24 > 0:36:2752. 54.
0:36:27 > 0:36:3056. 58.
0:36:30 > 0:36:33And 60. And a half.
0:36:33 > 0:36:37And nine. And a half.
0:36:37 > 0:36:40And 60. And a half.
0:36:40 > 0:36:42And 61. And a half.
0:36:42 > 0:36:4662. 62 and a half - or is that 63?
0:36:46 > 0:36:4965 - straight in, 65. Burn you out completely.
0:36:49 > 0:36:53At 65. 65, you're in, sir. Yellow shirt has it. You're in.
0:36:53 > 0:36:55At 65 for the first time.
0:36:55 > 0:36:57At 65 for the second.
0:36:57 > 0:37:00At 65,000, third and final time.
0:37:00 > 0:37:03Selling to you, sir, yellow shirt, at 65,000...
0:37:03 > 0:37:05And out.
0:37:05 > 0:37:06Congratulations.
0:37:06 > 0:37:08That determined bidder who managed to get
0:37:08 > 0:37:11the property for £65,000 is Jeff,
0:37:11 > 0:37:14who also happens to be the postmaster for St Day.
0:37:14 > 0:37:19- # Stop - Oh, yes, wait a minute, Mr Postman
0:37:19 > 0:37:23- # Wait - Wait, Mr Postman... #
0:37:24 > 0:37:26And Jeff may be more local than most,
0:37:26 > 0:37:28because he owns the post office next door.
0:37:36 > 0:37:38- Congratulations. - Thank you very much.
0:37:38 > 0:37:41Tell me why you wanted to buy this place, then?
0:37:41 > 0:37:47We've got the property next door and, obviously, an advantage for us
0:37:47 > 0:37:51is that fact that we can do what we like with the property
0:37:51 > 0:37:55now that we don't have strangers coming in round the back
0:37:55 > 0:37:56and we've got parking spaces as well.
0:37:56 > 0:38:00I thought it'd have been absolutely essential for you to buy it.
0:38:00 > 0:38:05It certainly was, but the barn has got a bit of a history with us
0:38:05 > 0:38:10as well, because when my parents bought the property next door,
0:38:10 > 0:38:11back in the '70s,
0:38:11 > 0:38:15my father said, "What about the barn attached to it?"
0:38:15 > 0:38:17And they said, "Well, the local shop is using it,
0:38:17 > 0:38:21"so we can't include it with your deeds."
0:38:21 > 0:38:24So Father said, "Well, OK.
0:38:24 > 0:38:26"If anything comes of it in the future..."
0:38:26 > 0:38:31And over the years, we've still tried to buy it from previous owners,
0:38:31 > 0:38:34but the price was always too much.
0:38:34 > 0:38:36But it's just happened it's come at the right time.
0:38:36 > 0:38:40I imagine it would have been...gosh, sleepless nights,
0:38:40 > 0:38:43if somebody else had bought it and decided to do whatever with it.
0:38:43 > 0:38:45Yeah, the worry was that the barn
0:38:45 > 0:38:48has got planning permission for a house,
0:38:48 > 0:38:51with parking space outside.
0:38:51 > 0:38:56The garden and garages have also got planning permission.
0:38:56 > 0:39:01And at one time, they were proposing two houses in there.
0:39:01 > 0:39:06And if we two houses, with the access and all the traffic,
0:39:06 > 0:39:09I think it would have been all just too much for safety
0:39:09 > 0:39:11and everything else.
0:39:11 > 0:39:14Right, but you've managed to negate that buying it yourself.
0:39:14 > 0:39:18That's right. At least we've got a bit more control over it now.
0:39:18 > 0:39:22Jeff bided his time to get the barn, so presumably,
0:39:22 > 0:39:24he's had a long time to think about
0:39:24 > 0:39:26how he's going to put his stamp on it.
0:39:26 > 0:39:29But before we find out his plans...
0:39:29 > 0:39:31I've got to ask, what does your T-shirt mean?
0:39:31 > 0:39:33- "Cornishmen do it dreckley?"- Yeah.
0:39:33 > 0:39:36Well, it's a little bit slower than Spanish manana.
0:39:36 > 0:39:39It'll get done...eventually.
0:39:39 > 0:39:43But my wife has another phrase that she likes to put on the end -
0:39:43 > 0:39:46"Cornishmen do it dreckley, Cornishwomen want it done NOW."
0:39:46 > 0:39:48THEY LAUGH
0:39:48 > 0:39:50So it'll be interesting who gets their way.
0:39:50 > 0:39:52It certainly will.
0:39:52 > 0:39:53So, what are the plans?
0:39:53 > 0:39:57My mother-in-law thinks it would nice to have an artist's studio upstairs,
0:39:57 > 0:40:01and my wife was saying, "Why can't have we have a workshop downstairs
0:40:01 > 0:40:03"for a local business or something?"
0:40:03 > 0:40:08So I think, initially, we're going for putting the new roof on,
0:40:08 > 0:40:11altering the heights of these ceilings,
0:40:11 > 0:40:13so that there will be more room down here,
0:40:13 > 0:40:18- and then see what the funds will allow us to do in the future.- Right.
0:40:18 > 0:40:19That's this building here, then.
0:40:19 > 0:40:21What about the garages and the garden?
0:40:21 > 0:40:24- It's a nice little garden there, too, isn't there?- Yes.
0:40:24 > 0:40:28The fact that that has also got planning permission on...
0:40:28 > 0:40:34But again, I don't think that, for the access, it's very good.
0:40:34 > 0:40:36But there's a neighbour who wants to buy it,
0:40:36 > 0:40:39and he's got a couple of cars, that he can use the garages.
0:40:39 > 0:40:42So that would be an answer, really,
0:40:42 > 0:40:47to a big development happening in, really, a nice, small area.
0:40:47 > 0:40:49- So you might sell it?- Yes.- Right.
0:40:49 > 0:40:55Now, will you limit by putting a covenant on the sale,
0:40:55 > 0:40:58what that person can do with the bit of land and those garages?
0:40:58 > 0:41:01Would you stop them building that house?
0:41:01 > 0:41:04- I can't see I can stop them. - Yes, you can.
0:41:04 > 0:41:06You can see it under the principle that you can't do it,
0:41:06 > 0:41:08- put a covenant on it. - Um...
0:41:08 > 0:41:10That might affect how much I'll get for it.
0:41:10 > 0:41:13It might, but on the other hand, if he ends up building houses there,
0:41:13 > 0:41:15- you're back to square one.- Yeah.
0:41:15 > 0:41:17That might be something for the solicitor...
0:41:17 > 0:41:19He's going to hate me, isn't he?
0:41:19 > 0:41:20THEY LAUGH
0:41:20 > 0:41:22I should leave the country!
0:41:22 > 0:41:24All right, I'm off!
0:41:24 > 0:41:29I hope Jeff gives this a lot of thought and takes legal advice.
0:41:29 > 0:41:33Having waited all this time to get his hands on the plot, it would be a shame
0:41:33 > 0:41:37to throw away the advantages and options this purchase gives him.
0:41:37 > 0:41:40But whatever happens to the plot and the barn, be it a gallery,
0:41:40 > 0:41:45workshop or a house, he's given himself 12 months to do the work.
0:41:45 > 0:41:48So talk me through the numbers, then.
0:41:48 > 0:41:51The whole lot cost us 65,000.
0:41:51 > 0:41:56If things go ahead as I hope,
0:41:56 > 0:42:01then I shall be spending a total of the same amount to do up this,
0:42:01 > 0:42:05- using the proceeds from the other side...- Right.- To do this one up.
0:42:05 > 0:42:06And at the end of the day,
0:42:06 > 0:42:12a two-bedroom place would probably rent for, well, I'm hoping, 500.
0:42:12 > 0:42:15But I'm a bit confused, because you got pressure from the family
0:42:15 > 0:42:17to not convert it into something that people could live in.
0:42:17 > 0:42:21You're talking about working space, workshops and galleries.
0:42:21 > 0:42:23There's only the wife and the mother-in-law!
0:42:23 > 0:42:26Oh, OK, then. I'm sure you'll get away with it, then.
0:42:26 > 0:42:29But I might have to move in myself if they don't agree with it!
0:42:29 > 0:42:31Well, listen, congratulations.
0:42:31 > 0:42:36- Good luck with it, and I look forward to seeing how you get on. - Thank you very much.
0:42:36 > 0:42:40Well, it really was the obvious thing for Jeff to do,
0:42:40 > 0:42:42to buy this particular auction lot.
0:42:42 > 0:42:45I think you really would have regretted it had he not.
0:42:45 > 0:42:49Although I am a little bit concerned about selling off parts of it so soon,
0:42:49 > 0:42:52because once it's sold, you never know what somebody might do with it.
0:42:52 > 0:42:53And of course,
0:42:53 > 0:42:57there are the arguments that are in store between him and his family.
0:42:57 > 0:43:01How will it all turn out? You can find out later in the show.
0:43:04 > 0:43:07Renovating a property can be a very time-consuming undertaking.
0:43:07 > 0:43:10Especially if things don't go according to plan.
0:43:10 > 0:43:15So let's see if our buyers' dreams got off the drawing board.
0:43:15 > 0:43:19Back now to Stoke-on-Trent and the suburb of Sneyd Green,
0:43:19 > 0:43:21where earlier, we met David,
0:43:21 > 0:43:25a self-employed business consultant from nearby Uttoxeter,
0:43:25 > 0:43:28who brought this two-bedroom terraced house
0:43:28 > 0:43:30at auction for £50,500.
0:43:30 > 0:43:34He aimed to add it to two other properties in his fledgling
0:43:34 > 0:43:38rental portfolio and anticipated that all the tiny interior
0:43:38 > 0:43:41would need would be a quick refurb.
0:43:41 > 0:43:45But he hadn't bargained for several damp problems throughout the house.
0:43:45 > 0:43:49- Has it turned out pretty much as you imagined?- Not exactly.- Ah.
0:43:49 > 0:43:53The point at which, in trying to get a mortgage for the house,
0:43:53 > 0:43:56the surveyor came in and said that we need to get a damp survey done...
0:43:56 > 0:44:00- was something I didn't expect. - So where does that leave you?
0:44:00 > 0:44:03It delayed the mortgage, which cost us money in the end,
0:44:03 > 0:44:08because we went beyond the 28 days from... Yeah, I'm afraid so.
0:44:08 > 0:44:11And I have to say, that was a learn, because in previous houses,
0:44:11 > 0:44:14I thought that if that happened, it was the end of the world.
0:44:14 > 0:44:19It wasn't the end of the world, but when the clock stops ticking,
0:44:19 > 0:44:21as it were, it starts to cost money.
0:44:21 > 0:44:25One of the advances of buying at auction is the turnaround.
0:44:25 > 0:44:29Completing a contract when buying or selling a property
0:44:29 > 0:44:33is normally 28 days, but David exceeded that by five days.
0:44:33 > 0:44:36Fortunately, he didn't lose his deposit.
0:44:36 > 0:44:40However, as it turns out, that wasn't the only hassle ahead.
0:44:40 > 0:44:44He reckoned on a £12,000 budget and a two-month turnaround
0:44:44 > 0:44:49to fix the problems, and to get his house on the rental market.
0:44:50 > 0:44:53Three months later, we return to Sneyd Green.
0:44:53 > 0:44:57There's a new front door, and inside, the front lounge
0:44:57 > 0:45:03has been redecorated, with the original fireplace still intact.
0:45:03 > 0:45:06And in the rear reception room, the fireplace has now gone,
0:45:06 > 0:45:08and it seems the walls have been replastered.
0:45:09 > 0:45:14In the extension, new kitchen units have been installed.
0:45:14 > 0:45:18While at the rear, the bathroom has been re-tiled with the washbasin
0:45:18 > 0:45:22repositioned, so everything on the ground floor is looking good.
0:45:22 > 0:45:24But more importantly, it looks like
0:45:24 > 0:45:28all those damp issues have been fixed, which did mean tackling
0:45:28 > 0:45:30the problems from the top to the bottom of the house.
0:45:30 > 0:45:33The tiles were no good on the roof, they just crumbled.
0:45:33 > 0:45:37So all of the rear of the roof has now got new tiles
0:45:37 > 0:45:39that had to be totally replaced.
0:45:39 > 0:45:42But the other damp problem, some of it was coming from the ground
0:45:42 > 0:45:45and some from the roof over the kitchen.
0:45:45 > 0:45:47There is no lead flashing between the kitchen roof
0:45:47 > 0:45:49and the wall of the house.
0:45:49 > 0:45:52So the walls downstairs, some of them were wet because of that.
0:45:52 > 0:45:55Not only was the water coming in from above,
0:45:55 > 0:45:57a fair bit was coming up from beneath.
0:46:01 > 0:46:03I mean, this room, took all of the plaster off the walls.
0:46:03 > 0:46:07It had to be stripped right back. The whole height of the room.
0:46:07 > 0:46:09This wall here had to be totally rebuilt,
0:46:09 > 0:46:12there were about three layers of plasterboard.
0:46:12 > 0:46:14When we took the plaster off from this corner, there was
0:46:14 > 0:46:16basically no wall underneath it.
0:46:16 > 0:46:21The bricks were totally crumbled and there was soot and rocks above them,
0:46:21 > 0:46:25but as you can see, we've had that rebuilt, and it's all repaired.
0:46:25 > 0:46:27And when it came to the kitchen,
0:46:27 > 0:46:31it appears that old damp problem was still keen on making an appearance.
0:46:31 > 0:46:33Everything in the kitchen has been replaced.
0:46:33 > 0:46:35We had to rip out the old kitchen.
0:46:35 > 0:46:38The door has been replaced, all new units.
0:46:38 > 0:46:42And the particular challenge was this wall, which was sopping wet,
0:46:42 > 0:46:45so it had to be stripped right back, damp-proof injected
0:46:45 > 0:46:48and then reconstructed before we could put the kitchen in.
0:46:48 > 0:46:52While the roof and ground floor have been getting the heavy treatment,
0:46:52 > 0:46:55upstairs, the bedrooms have escaped any major work,
0:46:55 > 0:46:59with just a fresh coat of paint applied to the walls and woodwork.
0:46:59 > 0:47:02When David first decided to buy the property,
0:47:02 > 0:47:05he didn't envisage the extent of the damp issues.
0:47:05 > 0:47:09And he didn't envisage being a project manager either.
0:47:09 > 0:47:12But when his original choice of project manager pulled out,
0:47:12 > 0:47:14that's what happened.
0:47:14 > 0:47:16But I had to do it.
0:47:16 > 0:47:19I had to sit down and work out
0:47:19 > 0:47:23when everything would be done - it was an interesting challenge.
0:47:24 > 0:47:27Despite the problems, David sees this project
0:47:27 > 0:47:29as being an important learning curve.
0:47:29 > 0:47:31Apart from throwing himself into removing the plaster
0:47:31 > 0:47:35and spending several days getting the house ready, he has also
0:47:35 > 0:47:39built up a network of tradesmen, handy for future projects.
0:47:39 > 0:47:42However, when it comes to this project, I think
0:47:42 > 0:47:44he's glad it's over.
0:47:44 > 0:47:47The biggest challenge for me has been the amount of time I've spent here.
0:47:47 > 0:47:49And that's what's taken its toll, really.
0:47:49 > 0:47:52I've got to the point where I'm thinking,
0:47:52 > 0:47:54"Oh, no, I need to get out of this place."
0:47:54 > 0:47:57Those delays sorting out the damp issues
0:47:57 > 0:48:00have pushed his schedule up from two to three months.
0:48:00 > 0:48:02But has it pushed up his budget?
0:48:02 > 0:48:07Interestingly, my budget with my contingency was £12,000.
0:48:07 > 0:48:13And I have pretty much spent every bit of it, but not gone over. As yet.
0:48:13 > 0:48:15So from that point of view, I'm happy.
0:48:17 > 0:48:19£12,000 on the button.
0:48:19 > 0:48:22Add that of the purchase price of £50,500,
0:48:22 > 0:48:26and David will have spent £62,500.
0:48:26 > 0:48:29So will he get his money back?
0:48:29 > 0:48:32Time to find out the thoughts of two local property experts.
0:48:32 > 0:48:35I think the property has been done well throughout.
0:48:35 > 0:48:37It's been replastered, new double glazing, new centre heating,
0:48:37 > 0:48:39new kitchen, new bathroom.
0:48:39 > 0:48:43It's ready for either resale or to get the property let out.
0:48:43 > 0:48:46I think the finish to the kitchen and bathroom have been done well.
0:48:46 > 0:48:49Certainly, the standard has been done good throughout.
0:48:49 > 0:48:51David plans to let this out,
0:48:51 > 0:48:55so what sort of rental returns could he expect?
0:48:55 > 0:48:59I'd suggest the rental price would be around £395 per calendar month.
0:48:59 > 0:49:01I'd place this onto the market
0:49:01 > 0:49:03at somewhere around £400 per calendar month.
0:49:03 > 0:49:08That's about what I expected. It's less than I initially thought.
0:49:08 > 0:49:13Those valuations could give David a healthy annual yield of 7.5%,
0:49:13 > 0:49:18but would the resale values persuade him to change his mind?
0:49:18 > 0:49:22I'd place this onto the market at £69,950.
0:49:22 > 0:49:23In today's market,
0:49:23 > 0:49:27I'd suggest the asking price should be set around £70,000.
0:49:27 > 0:49:28£70,000 is reassuring.
0:49:28 > 0:49:31Of course, whether you get that on the market is another thing,
0:49:31 > 0:49:32but I'm not planning to sell anyway.
0:49:32 > 0:49:37If those valuations remain the same, then that small profit
0:49:37 > 0:49:40of around £7,500 minus the usual taxes and fees will
0:49:40 > 0:49:45soon be outstripped by the possible rental returns in under two years.
0:49:45 > 0:49:47So I reckon David has chosen the right route
0:49:47 > 0:49:49to earning a profit on his house.
0:49:49 > 0:49:52And hopefully it will go some way to giving him
0:49:52 > 0:49:55a happier feeling about his experience here.
0:49:56 > 0:50:00It's not been a stunning project, it's not worked out quite how I would
0:50:00 > 0:50:02have wanted it to.
0:50:02 > 0:50:06Lot of learning, this time, which is good - that helps for the next one.
0:50:11 > 0:50:13Earlier we were in Cornwall
0:50:13 > 0:50:16and the little village of St Day near Redruth,
0:50:16 > 0:50:21where, tucked behind the main road, lay this exciting opportunity.
0:50:21 > 0:50:23It was this barn that came with planning permission
0:50:23 > 0:50:26for conversion into a two-bedroomed house,
0:50:26 > 0:50:29and with it the garages and land which also had permission for
0:50:29 > 0:50:35a separate house to be built. Getting this all for £65,000 was Jeff
0:50:35 > 0:50:40who also owns the property next door where he is the local postmaster.
0:50:40 > 0:50:44He's been eyeing up the barn for some time but now he's got it
0:50:44 > 0:50:47something tells me the delivery of this particular package
0:50:47 > 0:50:49might not be express.
0:50:49 > 0:50:52Got to ask - what does your T-shirt mean?
0:50:52 > 0:50:55- Cornishmen do it dreckley.- Yeah. - Well, it's a little bit slower
0:50:55 > 0:50:58than Spanish manana. It will get done eventually.
0:50:58 > 0:50:59MARTIN LAUGHS
0:50:59 > 0:51:02But me wife has another phrase that she likes to put on the end,
0:51:02 > 0:51:06"Cornishmen do it dreckley, Cornishwomen want it done NOW!"
0:51:06 > 0:51:07LAUGHTER
0:51:07 > 0:51:12Jeff reckoned another 12-month turnaround and a budget of £65,000
0:51:12 > 0:51:15for the conversion, but it seems there was something to that dreckley
0:51:15 > 0:51:20motto because it was 18 months later that we returned to the barn.
0:51:20 > 0:51:21So, was it worth the wait?
0:51:23 > 0:51:27What a barnstorming transformation. The question is -
0:51:27 > 0:51:30after all the different ideas from Jeff, his wife
0:51:30 > 0:51:34and his wife's mother on what the barn should be converted into
0:51:34 > 0:51:38is it a gallery, is it a workshop, is it a home?
0:51:38 > 0:51:43Well, while the existing window has been filled in on the first floor,
0:51:43 > 0:51:46two new windows have been added giving a hint to the biggest
0:51:46 > 0:51:48change here.
0:51:48 > 0:51:50A great-looking kitchen/lounge.
0:51:51 > 0:51:56Well, upstairs was just a wide open space.
0:51:56 > 0:51:59And we've kept it like that, really, we put the kitchen in this side
0:51:59 > 0:52:03with a living accommodation over there
0:52:03 > 0:52:08and also we've got a lovely door leading to the steps,
0:52:08 > 0:52:10cos you can open it like a stable door,
0:52:10 > 0:52:15and I think that's the best thing about what's happened to the barn
0:52:15 > 0:52:19is the character and hopefully somebody will be happy
0:52:19 > 0:52:21to live here for the future.
0:52:21 > 0:52:24And with new granite steps leading up to the kitchen door this
0:52:24 > 0:52:28massive room really functions now as the main reception area
0:52:28 > 0:52:32but as you can guess from the layout so far Jeff has gone for the
0:52:32 > 0:52:34upside-down approach.
0:52:34 > 0:52:39Downstairs we've put the two bedrooms - this is
0:52:39 > 0:52:44a double bedroom. We've got the stairs in the centre
0:52:44 > 0:52:48and the other bedroom at the end underneath the kitchen.
0:52:48 > 0:52:52The main reason for that was that there isn't very much of a view
0:52:52 > 0:52:57and being downstairs they only use it to go to bed so you're
0:52:57 > 0:53:01pulling the curtains so it just makes sense that you aren't
0:53:01 > 0:53:04going to miss out on a view that you can get from upstairs.
0:53:06 > 0:53:10With the shower room also down here and with tenants lined up
0:53:10 > 0:53:13Jeff and his wife finally decided that letting the barn out for
0:53:13 > 0:53:17residential use was the best way for this place to pay for itself.
0:53:17 > 0:53:20But before Jeff could even start the renovation he needed to raise
0:53:20 > 0:53:22the money for the work.
0:53:22 > 0:53:24It's unfortunate I had to sell the garages
0:53:24 > 0:53:28and the land because that's a separate building.
0:53:28 > 0:53:31It had to go cos I couldn't afford to do this financially
0:53:31 > 0:53:34without selling on that part.
0:53:34 > 0:53:37Jeff didn't take my advice on putting a covenant on the land
0:53:37 > 0:53:41preventing any future building but he had to balance that up
0:53:41 > 0:53:44with the price he negotiated for the land.
0:53:44 > 0:53:47There was further time-consuming negotiation to deal with
0:53:47 > 0:53:51as it turned out that there was a hiccup with the existing plans.
0:53:51 > 0:53:55The barn was five feet shorter than the drawings indicated
0:53:55 > 0:53:59and then there were building regulations to contend with.
0:53:59 > 0:54:03Even though the walls are three-foot thick we still,
0:54:03 > 0:54:07because of new building regulations we had to put extra insulation on
0:54:07 > 0:54:09the inside.
0:54:09 > 0:54:13Which, of course, made the inside a little bit smaller again
0:54:13 > 0:54:16so we've had a few issues with the whole thing but, erm,
0:54:16 > 0:54:20very pleased with the way it's turned out so far.
0:54:20 > 0:54:23Jeff saved some valuable space by using underfloor heating
0:54:23 > 0:54:25instead of radiators.
0:54:25 > 0:54:28He used local builders to do the conversion, from installing
0:54:28 > 0:54:32a new roof to insulating the walls and everything in between.
0:54:32 > 0:54:36All told, after all the delays the actual renovation only
0:54:36 > 0:54:40took five months but Jeff still feels he managed to live up
0:54:40 > 0:54:43to the dreckley motto.
0:54:43 > 0:54:46Yeah, I think when you go into building
0:54:46 > 0:54:52you need to build in an extra 10 to 20% of everything - time,
0:54:52 > 0:54:56materials and labour. I should have done that at the beginning really!
0:54:56 > 0:54:57HE CHUCKLES
0:54:57 > 0:55:00And when it comes to money, Jeff bought the barn, garages
0:55:00 > 0:55:03and land for £65,000,
0:55:03 > 0:55:07reckoning it would cost as much again to renovate just the barn.
0:55:07 > 0:55:10Well, he managed to get it done for £60,000 which
0:55:10 > 0:55:14would take his total spend to £125,000.
0:55:14 > 0:55:19I think really it's a form of achievement
0:55:19 > 0:55:23rather than the value because we don't expect to sell it,
0:55:23 > 0:55:26instead we've got something I would look back and say -
0:55:26 > 0:55:28"That was a good job."
0:55:30 > 0:55:35But with that spend at 125,000 will the barn prove to be
0:55:35 > 0:55:37a good investment?
0:55:37 > 0:55:40Time to find out the thoughts of two local property experts
0:55:40 > 0:55:43and we start with the auctioneer who sold the property to Jeff.
0:55:44 > 0:55:47It's a bit unconventional in the fact that the gentleman has
0:55:47 > 0:55:50converted it in the sense it's a topsy-turvy house.
0:55:50 > 0:55:53You've got the living accommodation upstairs and, of course,
0:55:53 > 0:55:58sleeping accommodation downstairs. Not everyone's cup of tea but it's different.
0:55:58 > 0:56:01Obviously, not going to suit everybody with the style of it
0:56:01 > 0:56:06but very quirky and tucked away from the main road in the village.
0:56:06 > 0:56:10Jeff had spent £125,000 buying and doing up the barn
0:56:10 > 0:56:13and though it's bound for the rental market what could he get
0:56:13 > 0:56:15if he sold the property on?
0:56:15 > 0:56:18This property should achieve on the open market
0:56:18 > 0:56:22somewhere in the region of £160-165,000.
0:56:22 > 0:56:26I would market it at an asking price of £150,000
0:56:26 > 0:56:30with a view to achieving somewhere around the region of £145,000.
0:56:30 > 0:56:33I think that's amazing, really. I didn't think it was going to be
0:56:33 > 0:56:35anything like it.
0:56:35 > 0:56:39I thought it was going to be more 110 or 120.
0:56:39 > 0:56:42Well, no wonder he's happy because with those valuations
0:56:42 > 0:56:45selling the barn could give him a pre-tax profit of between
0:56:45 > 0:56:50£20,000 and £40,000. Of course, that's not taking into account
0:56:50 > 0:56:52what he made from the sale of the land.
0:56:52 > 0:56:54So, is it good news too on the rental figures?
0:56:54 > 0:56:57On the rental market the property could achieve
0:56:57 > 0:57:00somewhere in the region of £650 to £700 per calendar month.
0:57:00 > 0:57:04Approximately £650 per calendar month.
0:57:04 > 0:57:06I was thinking originally about 500.
0:57:06 > 0:57:10But 650 is, er, very nice.
0:57:10 > 0:57:13Well, Jeff already has tenants lined up but if he went for those
0:57:13 > 0:57:16possible rental figures then he could achieve a healthy annual
0:57:16 > 0:57:19yield of between 6 and 7%.
0:57:20 > 0:57:23It may have taken longer than he'd thought to get to this stage
0:57:23 > 0:57:26but Jeff is pleased and proud of the final result.
0:57:26 > 0:57:30But was it enjoyable enough to make him contemplate another project?
0:57:30 > 0:57:33My wife and I haven't come to blows over it
0:57:33 > 0:57:36but we've had various discussions...
0:57:36 > 0:57:40Er, as to doing something else I think she's put the kibosh on that
0:57:40 > 0:57:42for the time being!
0:57:43 > 0:57:47Erm, I think this was a one-off, er...but we'll wait and see.
0:57:50 > 0:57:53Well, that's it for today's show but join us next time
0:57:53 > 0:57:56when we'll have more tales from the front line of property developing.
0:57:56 > 0:57:59So, make sure you join us then for more Homes Under The Hammer.
0:57:59 > 0:58:01Goodbye for now.