0:00:02 > 0:00:03Hello and welcome to the programme.
0:00:03 > 0:00:05Now, spotting a property bargain isn't easy,
0:00:05 > 0:00:08but sometimes rooting one out can be half the fun.
0:00:08 > 0:00:10Yes, you need to know your budget
0:00:10 > 0:00:13and believe you can stick to it,
0:00:13 > 0:00:15do your research and then...
0:00:15 > 0:00:18try and find a bargain. But where do you do that?
0:00:18 > 0:00:20Well, why not pop down to your local auction house
0:00:20 > 0:00:22and buy your next home under the hammer?
0:00:50 > 0:00:53I'm in Devon in the pretty village of Feniton.
0:00:56 > 0:01:00It's 12 miles from Exeter and the train...
0:01:00 > 0:01:03will whisk you to London in around three hours.
0:01:04 > 0:01:07Well, the property I'm here to see is just ten minute's walk
0:01:07 > 0:01:09from Feniton railway station.
0:01:09 > 0:01:12In fact, it was built in the 19th century
0:01:12 > 0:01:15to house railway workers.
0:01:15 > 0:01:18Good news is lots of off-road parking.
0:01:18 > 0:01:20Bad news is...
0:01:22 > 0:01:23..I can't find it.
0:01:23 > 0:01:26MUSIC: Looking For Love by Whitesnake
0:01:26 > 0:01:30# I'm looking for love to rescue the state of my heart. #
0:01:30 > 0:01:32- Here it is. - HE CHUCKLES
0:01:32 > 0:01:34So access - a bit of an issue.
0:01:34 > 0:01:38Guide price, though, £125,000 plus.
0:01:38 > 0:01:41Hm, that seems pretty reasonable for a two stroke three-bed
0:01:41 > 0:01:43semi-detached cottage.
0:01:43 > 0:01:44Looking good.
0:01:47 > 0:01:48Hm...
0:01:48 > 0:01:50Well, maybe not.
0:01:50 > 0:01:52This is the kitchen.
0:01:52 > 0:01:54Um, as you can see,
0:01:54 > 0:01:57it is fairly shabby...
0:01:57 > 0:01:59Um...
0:01:59 > 0:02:02And, straightaway, I'm not particularly
0:02:02 > 0:02:04getting a good feeling about the layout of this place.
0:02:04 > 0:02:07Interesting spot for the boiler...
0:02:07 > 0:02:10Good news is, at least, it has a boiler, so it's got central heating.
0:02:10 > 0:02:13Bad news is the boiler's situated in the lounge,
0:02:13 > 0:02:15or at least one of the lounges, because come over this way
0:02:15 > 0:02:17and separated by this very large chimney
0:02:17 > 0:02:19is a second living room area here.
0:02:19 > 0:02:24I mean, it's almost like the cottage started quite small back there
0:02:24 > 0:02:28and then over the years it's been added onto and added onto.
0:02:28 > 0:02:30Because you come to this rear room.
0:02:30 > 0:02:33Admittedly you've got nice views out onto the garden,
0:02:33 > 0:02:36but these little stairs to the bedrooms...
0:02:41 > 0:02:45The layout downstairs just isn't working for me.
0:02:45 > 0:02:49How about trying to move the stairs into the middle reception room?
0:02:49 > 0:02:52And make a bit more of the sunny room at the end?
0:02:52 > 0:02:54That would be just PEACHY...
0:02:54 > 0:02:56MUSIC: Peaches by Presidents Of The United States Of America
0:02:56 > 0:03:00# Moving to the country I'm going to eat a lot of peaches
0:03:00 > 0:03:02# I'm moving to the country
0:03:02 > 0:03:05# I'm gonna eat me a lot of peaches. #
0:03:08 > 0:03:12So is the layout upstairs any better?
0:03:12 > 0:03:15Something tells me possibly not.
0:03:15 > 0:03:17Bathroom's in a good place and it looks to be
0:03:17 > 0:03:19in reasonable condition.
0:03:19 > 0:03:22But, then, this narrow corridor.
0:03:22 > 0:03:24Bedroom there,
0:03:24 > 0:03:27bit dark, bit dingy, bit claustrophobic.
0:03:27 > 0:03:31Through to, well, it's actually a bedroom, sort of,
0:03:31 > 0:03:33in the fact it is a through bedroom.
0:03:33 > 0:03:36I guess that's why the cottage was described as two stroke three bedrooms.
0:03:36 > 0:03:39There's a bedroom at the end, but, as I said,
0:03:39 > 0:03:41you can only access it through this room,
0:03:41 > 0:03:44which makes this room either maybe a study or a work room.
0:03:44 > 0:03:46Not ideally a bedroom.
0:03:46 > 0:03:50And again it's just...on the outside you think, "Yes, great."
0:03:51 > 0:03:53You come inside and you think,
0:03:53 > 0:03:54"No..."
0:03:54 > 0:03:56HE SIGHS
0:03:59 > 0:04:02And on top of that dated decor,
0:04:02 > 0:04:04there seems to be our old foe dampness,
0:04:04 > 0:04:07suggesting the roof might need some work.
0:04:07 > 0:04:10That's a must do even before you start shifting stairs
0:04:10 > 0:04:12and knocking down walls.
0:04:13 > 0:04:17So are there any solutions presenting themselves?
0:04:17 > 0:04:21Well, at the rear of this property you've got this good-sized garden.
0:04:21 > 0:04:22That's not what interests me.
0:04:22 > 0:04:25It's at the side of the house...
0:04:25 > 0:04:27where I think the solutions could be,
0:04:27 > 0:04:31because lots of space here to build an extension.
0:04:31 > 0:04:33And not just a single-storey extension.
0:04:33 > 0:04:35I think a double-storey extension,
0:04:35 > 0:04:38either on that bit at the front or, why not, the whole thing?
0:04:38 > 0:04:40The plot is big enough
0:04:40 > 0:04:42and so that is your solution.
0:04:42 > 0:04:44All you've got to do is talk the planners. Oh, yes...
0:04:44 > 0:04:47and get on good terms with the neighbours!
0:04:48 > 0:04:51We asked along an expert from the auction house
0:04:51 > 0:04:54that sold the former railway cottage to get her thoughts.
0:04:55 > 0:04:59I think if you just carry out the replacing of the kitchens and bathrooms
0:04:59 > 0:05:01and tidying up the accommodation that's here,
0:05:01 > 0:05:06maybe you'd be looking at around £175,000.
0:05:06 > 0:05:10If, however, they extended and did a lot more work,
0:05:10 > 0:05:12I think you could be looking at over 200.
0:05:12 > 0:05:15It is quite an individual cottage, really.
0:05:15 > 0:05:17And on the rental market?
0:05:17 > 0:05:20I think for a property of this sort of size,
0:05:20 > 0:05:25you'd be looking at around about £700-£750 per calendar month.
0:05:28 > 0:05:30Well, it does need a lot of work,
0:05:30 > 0:05:35but this little railway worker's cottage has a lot going for it.
0:05:35 > 0:05:39So I'm sure it was full steam ahead when it went under the hammer...
0:05:42 > 0:05:44Lot 131 - lovely little property, this.
0:05:46 > 0:05:48It is guided here at £125,000.
0:05:49 > 0:05:53Anybody want to start at £125,000?
0:05:53 > 0:05:54On the nose of the guide - 125.
0:05:54 > 0:05:58Thank you, sir, now seated here. Close in at 125.
0:05:59 > 0:06:03125, seated, 130 somewhere else.
0:06:03 > 0:06:05130. 135 can I say?
0:06:05 > 0:06:07Standing - 135, nod of the head.
0:06:07 > 0:06:09137.5 now...
0:06:09 > 0:06:11Any advance on 135,000, then?
0:06:12 > 0:06:15If you're out, he's in.
0:06:15 > 0:06:16Sure we're all done at that level?
0:06:16 > 0:06:18£135,000 standing.
0:06:18 > 0:06:21I'm going to call it for the first...
0:06:21 > 0:06:23second...
0:06:23 > 0:06:25third and last time.
0:06:25 > 0:06:27It's with sir here at £135,000.
0:06:30 > 0:06:32£135,000, sold to you, sir. Thank you.
0:06:33 > 0:06:37And that successful bid of £135,000
0:06:37 > 0:06:38was made by local builder Barry.
0:06:40 > 0:06:43I met Barry back at the cottage to find out his plans.
0:06:45 > 0:06:49- Barry, good to meet you.- And you. - Congratulations.- Thank you.
0:06:49 > 0:06:51- Well, it's a pretty little spot, isn't it?- It is nice.
0:06:51 > 0:06:52HE CHUCKLES
0:06:52 > 0:06:55Tell me why you wanted to buy the place.
0:06:55 > 0:06:57- I've bought it to rent or to, obviously, to sell.- Right.
0:06:57 > 0:07:00One of the two depending on how the figures stack up.
0:07:01 > 0:07:05At the moment I would edge along the fact that we are going to rent.
0:07:05 > 0:07:08- Right, OK. Is this something you do? - Now and again...
0:07:08 > 0:07:11in between our other work. We're in the building trade,
0:07:11 > 0:07:13so when we get some spare time,
0:07:13 > 0:07:16we drop back and do up some properties if we can.
0:07:16 > 0:07:17So who's going to be doing the work?
0:07:17 > 0:07:20There'll be a few of us. I have a bit of a team.
0:07:21 > 0:07:24Plumber, electrician, carpenter...
0:07:26 > 0:07:28In fact, Barry's not going to hold back
0:07:28 > 0:07:32and has already identified the need for an extension.
0:07:33 > 0:07:36There's a lot of garden, there's a lot of space.
0:07:36 > 0:07:38I think we can do quite a bit with it.
0:07:38 > 0:07:39What do you think about the inside?
0:07:39 > 0:07:42- Cos it's sort of disappointing, isn't it, at the moment.- It is.
0:07:42 > 0:07:44Very dysfunctional.
0:07:44 > 0:07:46That's a good word, actually. Dysfunctional.
0:07:46 > 0:07:49The stairs is in completely the wrong place,
0:07:49 > 0:07:52which hopefully will move into the new extension which will open it up.
0:07:52 > 0:07:53Oh, wow.
0:07:53 > 0:07:56And then we can rearrange bedrooms upstairs, obviously,
0:07:56 > 0:07:59- and not go through other bedrooms to get to them...- Yes.
0:07:59 > 0:08:01..and introducing hallways.
0:08:01 > 0:08:03So there's, I think, quite a bit of scope.
0:08:03 > 0:08:05So, let talk about the extension.
0:08:05 > 0:08:07What's the plan for that?
0:08:07 > 0:08:09Where will that be? How big? Where will it go?
0:08:09 > 0:08:12The extension will go on the side of the property as you approach it,
0:08:12 > 0:08:14so it will give it some frontage,
0:08:14 > 0:08:16- a nice front door straight in front of you.- OK.
0:08:16 > 0:08:20It will make... The garden will become then private.
0:08:20 > 0:08:24And inside the extension, there'll be a shower room, toilet,
0:08:24 > 0:08:26the main stairs and off of the stairs,
0:08:26 > 0:08:29you'll go off into the existing property.
0:08:29 > 0:08:32There'll be a fourth bedroom on the first floor.
0:08:32 > 0:08:36Barry is allowing three months to get the planning permission okayed
0:08:36 > 0:08:40and he's hoping to have the work finished within six months.
0:08:40 > 0:08:42Let's talk about the costs then.
0:08:42 > 0:08:44Let's just focus on the extension first of all.
0:08:44 > 0:08:47How much do you think the extension on its own is going to cost?
0:08:47 > 0:08:49About 17,000 - 18,000.
0:08:49 > 0:08:52- And that your price, cos you're doing it as a builder.- Yes.
0:08:52 > 0:08:55Somebody else it would cost, what, double that or something?
0:08:55 > 0:08:57- 23-24.- 23-24.
0:08:57 > 0:09:00So what the budget for the rest of the works, not the extension?
0:09:00 > 0:09:03I think we're probably looking at somewhere around 22-23.
0:09:04 > 0:09:07- OK, so 40 in total.- Around the 40 mark in total.
0:09:07 > 0:09:09Well, listen, congratulations.
0:09:09 > 0:09:11- Thank you very much. - Good luck with it.- Thank you.
0:09:11 > 0:09:13- Nice to meet you.- Cheers.
0:09:14 > 0:09:19So builder Barry not going for the quick profit and selling on,
0:09:19 > 0:09:23but sticking with the long-term plan of renting this place out.
0:09:23 > 0:09:28And what a transformation it could be when we return.
0:09:28 > 0:09:30Still a few issues such as planning permission
0:09:30 > 0:09:32to get through before then.
0:09:32 > 0:09:33How will he get on?
0:09:33 > 0:09:35You can find out later in the show.
0:09:39 > 0:09:42This is Cobridge, an area of Stoke-on-Trent in Staffordshire.
0:09:42 > 0:09:47Now this area is considered the home of the pottery industry in England,
0:09:47 > 0:09:49so I think it's safe to say
0:09:49 > 0:09:51it's time for me to potter on
0:09:51 > 0:09:53and find today's auction lot.
0:09:54 > 0:09:57And the property I'm here to see is a mid-terraced house,
0:09:57 > 0:10:00just a stone's throw away.
0:10:00 > 0:10:01It's got two bedrooms.
0:10:01 > 0:10:04It had a guide price of £25,000.
0:10:04 > 0:10:07I usually know what to expect from a property like this,
0:10:07 > 0:10:10because I have seen so many of these before.
0:10:10 > 0:10:13And from the outside, well, it looks like a standard terrace.
0:10:15 > 0:10:17Will it all be as seems, though, inside?
0:10:22 > 0:10:23OK!
0:10:23 > 0:10:27Well, some major reorganisation needs to be happening in this house.
0:10:27 > 0:10:29So, it's as I'd expect.
0:10:29 > 0:10:31But, you know, look at this.
0:10:31 > 0:10:33It could do with some modernising.
0:10:33 > 0:10:36There's beds here, there's a fridge there.
0:10:36 > 0:10:37It's all a bit skewwhiff.
0:10:37 > 0:10:40So you've got a sitting room, basically.
0:10:40 > 0:10:43You walk through the back of the property to a second sitting room.
0:10:43 > 0:10:46Now, you've just got to look at the carpet - go down and look at this.
0:10:46 > 0:10:49Carpets are truly worn, they need to be ripped up
0:10:49 > 0:10:51and a brand-new carpet needs to be put down.
0:10:51 > 0:10:55And right at the back of the property is the kitchen.
0:10:55 > 0:10:58Again, that needs to be taken out
0:10:58 > 0:11:00and something modern and fresh installed.
0:11:00 > 0:11:02That's not the end of the sad news,
0:11:02 > 0:11:04because right at the end there
0:11:04 > 0:11:07is a bathroom which is in a similar state and a loo.
0:11:07 > 0:11:11So I think whoever takes this house on has got to start from the bottom
0:11:11 > 0:11:13and work their way right up to the top.
0:11:15 > 0:11:19I think getting a big skip is first on the to-do list
0:11:19 > 0:11:21and then just rip it all out.
0:11:21 > 0:11:23Bathrooms, kitchens,
0:11:23 > 0:11:26carpets, ceiling tiles, wallpaper,
0:11:26 > 0:11:28wood cladding, furniture - the lot!
0:11:28 > 0:11:30Begone with you!
0:11:30 > 0:11:33And then you might need to order another skip for upstairs,
0:11:33 > 0:11:36because this isn't much better.
0:11:36 > 0:11:39Once you've cleared it all, I think, maybe, underneath,
0:11:39 > 0:11:41there might be a reasonable property.
0:11:41 > 0:11:45It just needs some love and attention.
0:11:45 > 0:11:46# Give me some loving
0:11:46 > 0:11:48# Give me some loving
0:11:48 > 0:11:49# Give me some loving
0:11:49 > 0:11:51# Give me some loving
0:11:51 > 0:11:53# Give me some loving
0:11:53 > 0:11:54# Every little day. #
0:11:56 > 0:11:58Outside it just gets better...
0:11:58 > 0:11:59I joke!
0:11:59 > 0:12:02Somewhere beneath all these overgrown leaves
0:12:02 > 0:12:05and bristly bushes lies a backyard.
0:12:05 > 0:12:09It's more like a jungle and I'm certainly not going to venture too far out
0:12:09 > 0:12:11without my secateurs.
0:12:11 > 0:12:12Ow! They're quite prickly...
0:12:12 > 0:12:15# My head is a jungle, jungle
0:12:16 > 0:12:18# My head is a jungle, jungle. #
0:12:20 > 0:12:23..so now I'm thinking you might need the local skip supplier on speed dial!
0:12:23 > 0:12:27The backyard has certainly got a little wild,
0:12:27 > 0:12:30but it's extra space and it leads out to an alleyway.
0:12:30 > 0:12:33And I think it's always handy to come in through the back door,
0:12:33 > 0:12:36especially on a wet day or if you have a bike.
0:12:36 > 0:12:39But I'm less keen on what's out the front...
0:12:39 > 0:12:41Just take a look across the road.
0:12:42 > 0:12:45Doesn't have the best view, does it?
0:12:45 > 0:12:47No. It's a factory over there.
0:12:47 > 0:12:48Now, before buying this place,
0:12:48 > 0:12:51I would want to find out what businesses
0:12:51 > 0:12:55could be inside that building and are they going to be noisy.
0:12:55 > 0:12:56Well, I've done my research
0:12:56 > 0:13:00and I found out that, yes, it's a manufacturing company for windows
0:13:00 > 0:13:03and it includes lots of drilling which can hear,
0:13:03 > 0:13:06banging and potentially vans coming and going all day long.
0:13:06 > 0:13:09I don't think it'll put everyone off,
0:13:09 > 0:13:10but it certainly will deter some.
0:13:12 > 0:13:15Hm, this is a tricky one.
0:13:15 > 0:13:17You could be thinking to yourself there's more negatives here
0:13:17 > 0:13:20than positives and you might be right.
0:13:20 > 0:13:24But there ARE positives in that it appears structurally sound.
0:13:24 > 0:13:28But most importantly, it's that guide price of £25,000,
0:13:28 > 0:13:32which could mean there's room to build a decent return on the outlay.
0:13:38 > 0:13:41What does a local property expert from the auction house
0:13:41 > 0:13:43that sold it think?
0:13:43 > 0:13:45To resell the property after modernisation,
0:13:45 > 0:13:50I would anticipate in the region of £55,000 - £60,000.
0:13:50 > 0:13:53Alternatively, the rental income would be in the region of
0:13:53 > 0:13:55£375 - £400 per calendar month.
0:13:57 > 0:13:59So some money to be made on resale.
0:13:59 > 0:14:03But with potential rental yields in the region of 10%,
0:14:03 > 0:14:06it's on the letting market that it could really make its mark.
0:14:09 > 0:14:12Yes, this terrace certainly needs to be thought through.
0:14:12 > 0:14:13It needs a lot of work,
0:14:13 > 0:14:15but that says potential to me.
0:14:15 > 0:14:18You can only make this place better!
0:14:18 > 0:14:20And in this popular rental spot,
0:14:20 > 0:14:23well, I think it could be a worthwhile investment for someone.
0:14:23 > 0:14:26Let's see who agreed when it went to auction.
0:14:30 > 0:14:32Lot 30.
0:14:32 > 0:14:34We now goes to Cobridge in Stoke-on-Trent.
0:14:34 > 0:14:38It's a mid-terrace house, sitting room, living room,
0:14:38 > 0:14:41kitchen and bathroom with two bedrooms, as well.
0:14:41 > 0:14:43We're guiding it at 25.
0:14:43 > 0:14:4520 can I say?
0:14:45 > 0:14:4820 on the phone. At £20,000.
0:14:48 > 0:14:50I'll go in ones, I've got 20,000.
0:14:50 > 0:14:5221 can I say now?
0:14:52 > 0:14:5421, 22...
0:14:54 > 0:14:5623, 24...
0:14:57 > 0:14:5925?
0:14:59 > 0:15:0125 in the corner, 25.
0:15:01 > 0:15:0426. A half, 25.5.
0:15:04 > 0:15:0626, sir? 26.
0:15:08 > 0:15:1026 1/2...27.
0:15:11 > 0:15:12And a half?
0:15:12 > 0:15:1427.5, 28? 28.
0:15:15 > 0:15:1728.5. 29?
0:15:17 > 0:15:19New bidder at 29.
0:15:20 > 0:15:2129.5.
0:15:22 > 0:15:2629.5. 30? 30.
0:15:27 > 0:15:29Another half?
0:15:29 > 0:15:31No? At £30,000, then.
0:15:31 > 0:15:33Another 500 anywhere else?
0:15:33 > 0:15:35Against you on the phone.
0:15:35 > 0:15:36At £30,000 then once.
0:15:36 > 0:15:38£30,000 twice.
0:15:38 > 0:15:40Third and final time at £30,000...
0:15:41 > 0:15:43You bought it, well done.
0:15:46 > 0:15:49And so, for £30,000,
0:15:49 > 0:15:52the two-bed terraced house in Cobridge, Stoke-on-Trent,
0:15:52 > 0:15:55was bought by Atul.
0:15:55 > 0:15:58This was to be a joint property development project
0:15:58 > 0:16:02with brother Altur, and this was to be their first renovation project.
0:16:02 > 0:16:04I hope they like challenges.
0:16:06 > 0:16:09- Congratulations.- Yeah.- Thank you.
0:16:09 > 0:16:11So, who was it who wanted to buy this house?
0:16:11 > 0:16:13We've always looked at these sort of houses
0:16:13 > 0:16:16but we've never had an opportunity with the budget and everything
0:16:16 > 0:16:19and we saw this one at the auctions and thought, "Well, let's have a go."
0:16:19 > 0:16:22Did you view this property prior to the auction?
0:16:22 > 0:16:25We did, yeah. We looked at it and...
0:16:25 > 0:16:27the smell wasn't...
0:16:27 > 0:16:29It wasn't in a good state, no.
0:16:29 > 0:16:31So, now you've actually got the property, tell me,
0:16:31 > 0:16:34what you think of it now you've seen it?
0:16:34 > 0:16:36- It's worse now. - SHE LAUGHS
0:16:36 > 0:16:37It's worse now?
0:16:37 > 0:16:42Cos at the time when we viewed it through the auction,
0:16:42 > 0:16:45we couldn't get inside into it properly
0:16:45 > 0:16:47because of the smell and everything.
0:16:47 > 0:16:49Now that we've got the keys and looked at the condition of it...
0:16:49 > 0:16:51Oh, dear.
0:16:51 > 0:16:53- Some work needs to be done in here. - Why are you doing this?
0:16:53 > 0:16:57Are you going to let this out or are you selling on for profit?
0:16:57 > 0:17:00We're going to have a look at both options and see which one works out
0:17:00 > 0:17:04the best so our main option will be to sell it out again.
0:17:04 > 0:17:06Failing that, we'll be looking at the letting it out.
0:17:06 > 0:17:09So, what do you think you can do to set this place apart?
0:17:09 > 0:17:13We're going to be stripping the whole rooms out,
0:17:13 > 0:17:14everything from here.
0:17:14 > 0:17:17We're looking at putting the new, brand-new radiators,
0:17:17 > 0:17:21the boiler, new bathrooms, completely new kitchen...
0:17:23 > 0:17:24..painting and decorating.
0:17:24 > 0:17:26I think it will brighten up the place a little bit more.
0:17:26 > 0:17:29So, what budget have you got to spend?
0:17:29 > 0:17:32We're looking at about £12,000.
0:17:32 > 0:17:34So, tell me, what is your timescale for the work?
0:17:34 > 0:17:37At least three months. Yeah. At least three months.
0:17:37 > 0:17:40- So you're not daunted, Altur, by the work?- Absolutely not.
0:17:40 > 0:17:42- I'm looking forward to this actually. - Really?- I am.
0:17:42 > 0:17:44- So are you happy you've got it at auction?- We've got it.
0:17:44 > 0:17:47Now that we've got the keys, we just need to get on with it.
0:17:47 > 0:17:50Guys, good luck with this. Lovely to meet you today.
0:17:50 > 0:17:53- Thank you.- Congratulations and well done.- Thank you.
0:17:54 > 0:17:58So this property marks the start of what will hopefully become
0:17:58 > 0:18:00a new career for them both.
0:18:00 > 0:18:01I'm pleased to hear they love a challenge
0:18:01 > 0:18:05because I am sure this will be just that.
0:18:05 > 0:18:08I just hope they end up getting a healthy profit,
0:18:08 > 0:18:13otherwise we might end up seeing the "To Let" board outside.
0:18:13 > 0:18:15Join me later on in the programme and you can find out
0:18:15 > 0:18:17how they both get on.
0:18:19 > 0:18:23Coming up, in Derbyshire there's a building with surrounding land.
0:18:23 > 0:18:27So, I reckon that could be a very interesting opportunity.
0:18:29 > 0:18:33We return to Stoke-on-Trent to see how the brothers got on
0:18:33 > 0:18:35with their first development project.
0:18:35 > 0:18:38It was absolutely a massive challenge for us.
0:18:42 > 0:18:47But first we return to Devon and the pretty village of Feniton.
0:18:47 > 0:18:50It was here that we tracked down a former railway worker's cottage
0:18:50 > 0:18:54that had, over the years, been somewhat derailed
0:18:54 > 0:18:57by a series of add-ons, which gave it a layout
0:18:57 > 0:19:01that was a muddle of rooms branching off in all directions.
0:19:03 > 0:19:06But, with space at both rear and side,
0:19:06 > 0:19:09this two to three-bedroom semidetached cottage
0:19:09 > 0:19:11did have the chance to be turned around
0:19:11 > 0:19:13and made into a decent family home.
0:19:13 > 0:19:17And the man hoping to get this house back in line
0:19:17 > 0:19:23was local builder Barry, who bought it at auction for £135,000.
0:19:23 > 0:19:26What do you think about the inside cos it's sort of disappointing,
0:19:26 > 0:19:30- isn't it, at the moment? - It is. Very dysfunctional.
0:19:30 > 0:19:33Yeah, that's a good word, actually, dysfunctional.
0:19:33 > 0:19:36Provided planning was granted for the extension,
0:19:36 > 0:19:39he hoped that, with a budget of £40,000,
0:19:39 > 0:19:42he could completely refurbish and revitalise the house
0:19:42 > 0:19:44in around six months,
0:19:44 > 0:19:47depending on other work commitments of course.
0:19:47 > 0:19:50Well, his building firm must have been busy as we're now returning
0:19:50 > 0:19:5213 months later.
0:19:53 > 0:19:56And I am really hoping things have altered.
0:19:56 > 0:19:59# I wanna see a big change in you baby
0:19:59 > 0:20:01# Oh a big change in you baby
0:20:01 > 0:20:04# A big change in you baby
0:20:04 > 0:20:07# A big change in you baby. #
0:20:07 > 0:20:11Wow. A shiny new side extension is now in place,
0:20:11 > 0:20:14creating a new, centrally positioned front door.
0:20:14 > 0:20:16It certainly looks very smart
0:20:16 > 0:20:20but what effect has that had on the inside layout?
0:20:20 > 0:20:23# Big change in you baby
0:20:23 > 0:20:26# A big change in you baby
0:20:26 > 0:20:28# A big change in you baby
0:20:28 > 0:20:31# A big change in you baby... #
0:20:31 > 0:20:33The stairs are now in the middle
0:20:33 > 0:20:35with rooms flowing from the hallway.
0:20:35 > 0:20:38So, the old kitchen is now a utility area
0:20:38 > 0:20:41and the rear reception room is now the kitchen.
0:20:41 > 0:20:44Oh, that's so much better. Much more functional.
0:20:44 > 0:20:47# Big change in you baby
0:20:47 > 0:20:50# A big change in you baby... #
0:20:51 > 0:20:55We looked at the property and realised it needed an extension.
0:20:55 > 0:20:58I think we could have gone and not done it
0:20:58 > 0:21:00and then kicked ourselves after, but we went for it
0:21:00 > 0:21:02and it's really paid off.
0:21:02 > 0:21:06The house has got frontage and we've got two storeys.
0:21:06 > 0:21:08We've got an extra shower room and an extra bedroom.
0:21:11 > 0:21:15And that fourth bedroom now goes alongside three good-sized bedrooms.
0:21:24 > 0:21:26One of which is ensuite.
0:21:28 > 0:21:31And there's a completely new family bathroom.
0:21:33 > 0:21:36We've probably spent about 20,000 on the extension,
0:21:36 > 0:21:40which is pretty straightforward, but we've gone over budget a little bit
0:21:40 > 0:21:41on the renovation on the old parts.
0:21:41 > 0:21:44We've spent probably about 32,000.
0:21:44 > 0:21:47I think it's the fact we've put a higher spec kitchen in
0:21:47 > 0:21:51and the fact that the fittings are of a good standard
0:21:51 > 0:21:54and there's lots of insulation in the house now. It's nice and warm.
0:21:54 > 0:21:58So I think we've spent our money wisely and I think that will show
0:21:58 > 0:22:00when we come to rent or sell.
0:22:03 > 0:22:08A £52,000 budget on top of Barry's £135,000 purchase price
0:22:08 > 0:22:11takes his total spend to £187,000.
0:22:11 > 0:22:15So, is Barry right? Has it been worth spending that little bit
0:22:15 > 0:22:17extra to get a better finish?
0:22:17 > 0:22:20What do two local property experts think?
0:22:21 > 0:22:24The rental value I'd put on the property at the moment
0:22:24 > 0:22:29is between £950 and £1,000 per calendar month.
0:22:29 > 0:22:32In the current market, I believe the property, if it was rented out,
0:22:32 > 0:22:35would actually realise £850 per calendar month.
0:22:36 > 0:22:40Even that lower £850 per calendar month could see a rental yield
0:22:40 > 0:22:44of around 5%. But how about the all-important resale value
0:22:44 > 0:22:49on a property Barry's invested £187,000 into?
0:22:50 > 0:22:53The value I'd put on the property today as the property is now
0:22:53 > 0:22:57is between £250,000 and £275,000.
0:22:57 > 0:23:00In the current market I believe the property should be marketed
0:23:00 > 0:23:02at £250,000.
0:23:02 > 0:23:04I think 250 is around the right mark
0:23:04 > 0:23:09and if it needs to sell fast, I think it'll be going on for 250.
0:23:09 > 0:23:13And if he managed to sell the house for the £250,000 valuation,
0:23:13 > 0:23:17he could see a potential pre-tax profit of £63,000.
0:23:17 > 0:23:21Not bad as a sideline project to his main building work.
0:23:21 > 0:23:26But what now is his preferred next step with the property?
0:23:28 > 0:23:32I think we're going to sell just purely so we can move on
0:23:32 > 0:23:34and buy something else and do something else up.
0:23:38 > 0:23:42This is Somercotes, which is close to the borders of Derbyshire
0:23:42 > 0:23:45and Nottinghamshire and two miles from the town of Alfreton.
0:23:47 > 0:23:49Somercotes is a former mining village
0:23:49 > 0:23:52and was once surrounded by more than five working mines.
0:23:54 > 0:23:56Well, I'm here to see something that definitely normally
0:23:56 > 0:24:00grabs my attention - a former chapel. What's it going to be like?
0:24:00 > 0:24:03Well, for a start, it's got lots of land attached to it.
0:24:03 > 0:24:05This, car park's a good thing.
0:24:05 > 0:24:07Now, this is part of it.
0:24:07 > 0:24:10Well, it's not quite living up to my expectations of anything too grand
0:24:10 > 0:24:13but the good news is, this is only part of the lot
0:24:13 > 0:24:16because the new part of the chapel is actually here.
0:24:16 > 0:24:19Still not that inspiring but hey-ho.
0:24:19 > 0:24:22At a guide price of 75,000 quid, let's take a look inside.
0:24:23 > 0:24:27# I have to celebrate you baby
0:24:27 > 0:24:33# I have to praise you like I should... #
0:24:33 > 0:24:36The original chapel at the front was built around the 1890s
0:24:36 > 0:24:41and is now pretty derelict and used mostly for storage purposes.
0:24:44 > 0:24:48The replacement newer, bigger chapel was built in 1962.
0:24:48 > 0:24:50Let's take a look.
0:24:51 > 0:24:52So, what have we got?
0:24:52 > 0:24:54Straight into a little entrance area,
0:24:54 > 0:24:56where you've got loos and a kitchen
0:24:56 > 0:24:59and then into the main body of the chapel
0:24:59 > 0:25:03and basically 1,300 square feet of space.
0:25:03 > 0:25:06A little stage area, some storage behind there.
0:25:06 > 0:25:08Not a bad amount of room, actually,
0:25:08 > 0:25:11and it doesn't seem to be in too bad condition.
0:25:11 > 0:25:15Now, currently it's got D1 Class planning permission,
0:25:15 > 0:25:19which basically means it can be used as a church, as it already is,
0:25:19 > 0:25:23or something like an art gallery, a creche, maybe a daycare centre.
0:25:23 > 0:25:26The good news is that it's also had planning permission approved
0:25:26 > 0:25:29for change of use to be one use, which is office space.
0:25:29 > 0:25:32So, all in all, lots of flexibility and options.
0:25:32 > 0:25:34Or of course you could just keep it as a church.
0:25:34 > 0:25:37# All you've got to do is repeat after me
0:25:37 > 0:25:39# ABC
0:25:39 > 0:25:41# Easy as 123
0:25:41 > 0:25:43# Simple as do-re-mi
0:25:43 > 0:25:44# ABC
0:25:44 > 0:25:46# 123 baby you and me girl... #
0:25:46 > 0:25:48Well, to the side and rear of the property,
0:25:48 > 0:25:52other potential uses for the site start to become apparent.
0:25:52 > 0:25:54It's quite big - 0.2 acres.
0:25:54 > 0:25:58So, one thing you might consider is actually knocking the former chapel
0:25:58 > 0:26:01completely down. What you've got then is a very large,
0:26:01 > 0:26:04well, large enough, building plot in a good location.
0:26:04 > 0:26:05We've got mixed use around here.
0:26:05 > 0:26:08We've got some commercial units, some residential property,
0:26:08 > 0:26:10so you'd probably get planning permission
0:26:10 > 0:26:12for building flats or houses.
0:26:12 > 0:26:15It's a bit long and thin in an ideal world,
0:26:15 > 0:26:18but it's flat and, as I said, it's in a great location,
0:26:18 > 0:26:22so I reckon that could be a very interesting opportunity.
0:26:22 > 0:26:27Yes, yet another option available to whoever buys this property
0:26:27 > 0:26:30and at a guide price of just £75,000,
0:26:30 > 0:26:34I imagine there will be plenty of people taking a pew, ha-ha,
0:26:34 > 0:26:36at the auction for this former chapel.
0:26:36 > 0:26:40But before that, we asked the auctioneer to take a look around.
0:26:42 > 0:26:45I think probably you might get two pairs of semidetached houses on.
0:26:45 > 0:26:49Alternatively, you might get a higher density of townhouses.
0:26:49 > 0:26:52It's got a good access and it's got a lot of car parking already,
0:26:52 > 0:26:55not that you'd need that for the housing purpose.
0:26:55 > 0:27:00However, if you put a semidetached house on here with three bedrooms,
0:27:00 > 0:27:04it would have a resale value probably of around £130,000.
0:27:04 > 0:27:08And what if it was to become a commercial property and was rented?
0:27:08 > 0:27:11If this had consent for office use and assuming it was adapted
0:27:11 > 0:27:13and upgraded for that purpose, I would say it would have
0:27:13 > 0:27:18a rental value of probably about £7,500 - £8,000 a year
0:27:18 > 0:27:21and you might actually be able to rent out some of the car parking
0:27:21 > 0:27:22to other concerns around here.
0:27:22 > 0:27:25I'm sure there's a possibility of additional income.
0:27:29 > 0:27:31Well, it's not the prettiest chapel in the world
0:27:31 > 0:27:33but it does offer quite a few options for change of use,
0:27:33 > 0:27:36either for business or residential.
0:27:36 > 0:27:40I think you could knock this thing down and build houses in its place,
0:27:40 > 0:27:43and I don't think particularly that would be too much of a loss.
0:27:43 > 0:27:45Getting planning permission to do that however might be
0:27:45 > 0:27:49a different thing. Who took a chance on the chapel?
0:27:49 > 0:27:51Let's find out when it went to the auction.
0:27:55 > 0:27:59Lot number 49 is the former Somercotes Hill Methodist Chapel.
0:27:59 > 0:28:02It does have planning consent for conversion to office use.
0:28:02 > 0:28:04Having said that,
0:28:04 > 0:28:07it's equally suitable to a variety of other purposes.
0:28:07 > 0:28:10How much do you want to bid me on it?
0:28:10 > 0:28:1375? 70? £70,000?
0:28:13 > 0:28:1570. Thank you very much.
0:28:15 > 0:28:17At £70,000 opening bid.
0:28:17 > 0:28:2071. 71 I've got. Thank you. 71.
0:28:20 > 0:28:2272 at the back.
0:28:22 > 0:28:2373,
0:28:23 > 0:28:2574,
0:28:25 > 0:28:2774,000, 75.
0:28:27 > 0:28:2975,000, 76?
0:28:29 > 0:28:3276 is bid. 76,
0:28:32 > 0:28:3577, 77,000.
0:28:35 > 0:28:3778 I've got. 78.
0:28:37 > 0:28:4079 for you, sir. 79, 79,
0:28:40 > 0:28:4280,000...
0:28:42 > 0:28:45After a slow start, the auction room has come alive
0:28:45 > 0:28:48and we rejoin the auction at 100,000.
0:28:48 > 0:28:50..£100,000,
0:28:50 > 0:28:53101,
0:28:53 > 0:28:54102,
0:28:54 > 0:28:56103,
0:28:56 > 0:28:59103,000, and 4?
0:28:59 > 0:29:01£103,000,
0:29:01 > 0:29:03104,
0:29:03 > 0:29:05105,
0:29:05 > 0:29:07105,
0:29:07 > 0:29:09106?
0:29:09 > 0:29:13£105,000. We're selling at 105...
0:29:13 > 0:29:17106. 106.
0:29:17 > 0:29:197?
0:29:19 > 0:29:20No?
0:29:20 > 0:29:22£106,000 in the corner then.
0:29:22 > 0:29:26At 106,000. Going once,
0:29:26 > 0:29:27going twice...
0:29:27 > 0:29:29Third and last opportunity.
0:29:29 > 0:29:31All done at £106,000.
0:29:31 > 0:29:33- GAVEL BANGS - Sold in the corner at 106.
0:29:33 > 0:29:35Thank you.
0:29:38 > 0:29:39# Take me riding in the car car
0:29:39 > 0:29:41# Take me riding in the car car
0:29:41 > 0:29:44# Take you riding in my car car
0:29:44 > 0:29:46# I'll take you riding in my car... #
0:29:46 > 0:29:51That final bid of 106,000 was made by local couple John and Jacqueline.
0:29:51 > 0:29:54In fact, they're more than local, they're neighbours.
0:29:54 > 0:29:59Their garage and car sales business is right next-door to the chapel,
0:29:59 > 0:30:02so they just popped round to tell me why they bought it.
0:30:05 > 0:30:08- John, Jacqueline, congratulations. - Thank you.- Well done.
0:30:08 > 0:30:11Tell me why you wanted to buy the place.
0:30:11 > 0:30:14Well, it's so close to my business next-door
0:30:14 > 0:30:16that we really had no option.
0:30:16 > 0:30:20We needed to buy it to enhance the business and to improve it,
0:30:20 > 0:30:22give us a bigger area.
0:30:22 > 0:30:25We were using the car park so much that we thought we had no choice
0:30:25 > 0:30:27but to crack on and get it bought.
0:30:27 > 0:30:30Right. Have you known about the property obviously for a while?
0:30:30 > 0:30:33How long has your business been established there?
0:30:33 > 0:30:35Here, it's been seven years.
0:30:35 > 0:30:38This place has been empty for about three years,
0:30:38 > 0:30:41so when it first came up for sale we did make enquiries
0:30:41 > 0:30:46but was a little bit on the high price. We made an offer.
0:30:46 > 0:30:49- It was rejected.- What was the offer?
0:30:49 > 0:30:51The offer was approximately around about 138.
0:30:51 > 0:30:54Well, you most be delighted then cos you've just bought it
0:30:54 > 0:30:57- for a lot less than that. - We are obviously, yes. Yes.
0:30:57 > 0:31:01Well, yes. Having paid £106,000 at auction,
0:31:01 > 0:31:06that's a saving of £32,000 over the original offer price.
0:31:06 > 0:31:07Result!
0:31:07 > 0:31:11And it should give them more funding to carry out this project.
0:31:15 > 0:31:18So, tell me exactly what you're going to do with it then.
0:31:18 > 0:31:23Well, at this stage we're probably going to open it all up at the front
0:31:23 > 0:31:25so we can get cars inside.
0:31:25 > 0:31:27Take a lot of this area out
0:31:27 > 0:31:32so we give as much space as possible inside, and use it as a car showroom.
0:31:32 > 0:31:34- Right.- Get the nice cars in here,
0:31:34 > 0:31:38make them safe, and hopefully people will come in and have a look.
0:31:38 > 0:31:41- We were going to put probably some old classics in, as well.- Oh!
0:31:41 > 0:31:43The front, we need to open it up.
0:31:43 > 0:31:46We thought we might do away with the kitchen
0:31:46 > 0:31:49and have big open glass doors all the way across the front.
0:31:49 > 0:31:52So a really spectacular showcase for you from the road?
0:31:52 > 0:31:56Yes, hopefully. That would be good, yeah.
0:31:56 > 0:31:59Now, at the moment, it doesn't have planning permission
0:31:59 > 0:32:01for anything that you want to do, does it?
0:32:01 > 0:32:03- No.- Not yet.
0:32:03 > 0:32:06So, what's the steps to getting that, then?
0:32:06 > 0:32:10Well, we did make provisional enquiries before we bought it
0:32:10 > 0:32:12and we were told it probably wouldn't be a problem.
0:32:12 > 0:32:16So, what kind of budget have you got for doing the work?
0:32:16 > 0:32:19- That's a great question. - OK, thank you.- Um...
0:32:20 > 0:32:24We're probably looking at I think probably 30,000 - 40,000 to spend.
0:32:24 > 0:32:29- Really?- Yeah.- That sounds quite a lot.- I want to do it right.
0:32:29 > 0:32:32I want to make it nice and make it look the part.
0:32:32 > 0:32:36What kind of the timescale for the work?
0:32:36 > 0:32:39- Six months to a year? That's what we're thinking of.- Right.
0:32:39 > 0:32:42As long as we've got the time and we've got the money,
0:32:42 > 0:32:44- we should be fine. - Listen, congratulations.
0:32:44 > 0:32:46- We look forward to seeing how it all goes for you.- Thank you.
0:32:46 > 0:32:49- Thanks very much.- Nice to meet you. - Thank you.
0:32:51 > 0:32:53Well, John and Jacqueline certainly seem to have found
0:32:53 > 0:32:55the perfect place to expand their business
0:32:55 > 0:32:59but from a chapel to car showroom, it's one heck of a change of use
0:32:59 > 0:33:02and there's no guarantee the planners will go for it.
0:33:02 > 0:33:05Find out how they get on later in the show.
0:33:09 > 0:33:11It was in Cobridge, Stoke-on-Trent
0:33:11 > 0:33:14when we first came across a two-bed terraced house,
0:33:14 > 0:33:18which was... Well, to be frank, cosmetically in a terrible state.
0:33:18 > 0:33:22And with a guide price of 25,000, there was potentially room
0:33:22 > 0:33:24to do the full refurbishment
0:33:24 > 0:33:28and still see some profit, and that's what locally based brothers
0:33:28 > 0:33:33Altur and Atul thought when they paid 30,000 for it at auction.
0:33:34 > 0:33:38And they had a £12,000 budget to make it better.
0:33:38 > 0:33:41The brothers hoped, with the help of their building team,
0:33:41 > 0:33:44they could put it back together again to rent or sell
0:33:44 > 0:33:45in three months.
0:33:48 > 0:33:52And now, just slightly over that three-month timeframe, we're back.
0:33:56 > 0:33:59Well, things are looking promising with the new tiles on the roof,
0:33:59 > 0:34:03double glazing and a smart new front door.
0:34:03 > 0:34:05And inside?
0:34:05 > 0:34:07Let's go upstairs first.
0:34:15 > 0:34:17That's more like it.
0:34:17 > 0:34:20The bedrooms are now clean and fresh and clutter-free,
0:34:20 > 0:34:23and there's no longer just the two bedrooms up here.
0:34:23 > 0:34:26By taking some space from the back bedroom,
0:34:26 > 0:34:28they've managed to squeeze in a shower room.
0:34:28 > 0:34:30That really is a great bonus.
0:34:34 > 0:34:36But what about downstairs?
0:34:37 > 0:34:40Well, that's certainly getting there with new radiators,
0:34:40 > 0:34:42skirting and plasterwork.
0:34:44 > 0:34:45And the kitchen?
0:34:45 > 0:34:48Well, I'll let Altur update you on that.
0:34:49 > 0:34:51We've got a lovely kitchen unit here.
0:34:51 > 0:34:54We managed to get a really good deal on the units as well.
0:34:54 > 0:34:56Nice worktops here as well.
0:34:56 > 0:35:00The door here was actually on the right-hand side.
0:35:00 > 0:35:01We've decided to put it in the middle
0:35:01 > 0:35:04so you've got a nice walking area here, no obstructions.
0:35:06 > 0:35:10So, in this room we've had a new door, brand-new windows,
0:35:10 > 0:35:14new radiators, new skirting boards.
0:35:14 > 0:35:17All the four walls, including the ceiling, had to be re-plastered
0:35:17 > 0:35:19and it looks really nice, actually.
0:35:19 > 0:35:22I'm quite happy with what we've achieved so far.
0:35:25 > 0:35:28Down here, the bathroom is also still a work-in-progress.
0:35:31 > 0:35:34As is the rear yard, which needs slabs to be laid.
0:35:34 > 0:35:36But overall I think they've done pretty well
0:35:36 > 0:35:38in their three-month timeframe.
0:35:38 > 0:35:40It's been quite fun actually.
0:35:40 > 0:35:44Yeah, it's been really enjoyable working with my brother, yeah.
0:35:44 > 0:35:47He's been supportive, and we have had ups and downs all along the way
0:35:47 > 0:35:49but we got there.
0:35:50 > 0:35:53As projects go, this was quite a challenge
0:35:53 > 0:35:56and my biggest fear was potentially the house could be a money pit
0:35:56 > 0:36:01and their 12 grand budget might just go in the blink of an eye.
0:36:01 > 0:36:06Spending has gone over to 15,500 now and this is purely because
0:36:06 > 0:36:09of the roof, the tiles that needed to be put on,
0:36:09 > 0:36:13as well as the toilet that we had to put in the upstairs.
0:36:13 > 0:36:18Well, that's impressive if they do get all the work done for 15,500.
0:36:18 > 0:36:20And with that £30,000 purchase price,
0:36:20 > 0:36:25the brothers' total spend will be £45,500.
0:36:27 > 0:36:30What do two local property experts think of the work
0:36:30 > 0:36:32they've carried out so far?
0:36:33 > 0:36:35There is a demand for this sort of property,
0:36:35 > 0:36:37which would mainly come from landlords
0:36:37 > 0:36:41and I would anticipate a resale value in the region of £50,000.
0:36:41 > 0:36:43If the property was to go on the market, I would suggest
0:36:43 > 0:36:47that in today's market it's likely to achieve in the region of £50,000.
0:36:47 > 0:36:51A little bit less than I expected but with the climate...
0:36:51 > 0:36:53I'm OK with that. Mm-hm.
0:36:54 > 0:36:58Well, yes, resale isn't looking great at the moment in this area.
0:36:58 > 0:37:00Those valuations would offer a potential profit
0:37:00 > 0:37:04of under £5,000 minus taxes and expenses.
0:37:04 > 0:37:07Perhaps the rental figures will be more encouraging.
0:37:08 > 0:37:11I would place this property on the rental market
0:37:11 > 0:37:14in the region of £375 per calendar month.
0:37:14 > 0:37:16In today's market, I'd expect the property to achieve
0:37:16 > 0:37:19in the region of £350 per calendar month.
0:37:19 > 0:37:21Again, I was expecting a little bit more
0:37:21 > 0:37:25but we've had some private tenants offering a little bit more than that,
0:37:25 > 0:37:28so I think we're going to go through that option.
0:37:28 > 0:37:32Well, even £350 per calendar month would see a rental yield
0:37:32 > 0:37:34of around 9%.
0:37:34 > 0:37:37That's good! But was it really worth all the effort?
0:37:39 > 0:37:43It was absolutely a massive challenge for us but at the end,
0:37:43 > 0:37:47seeing the end result, I'm very happy with that
0:37:47 > 0:37:50and looking forward to something like this, similar, again.
0:37:53 > 0:37:56Ah, well, there's one developer happy with his lot
0:37:56 > 0:37:59but will the same be true for our next auction purchase,
0:37:59 > 0:38:02which we first saw over four years ago
0:38:02 > 0:38:05in the Derbyshire village of Somercotes?
0:38:06 > 0:38:10This former mining village was a setting for an unusual property,
0:38:10 > 0:38:12a former Methodist chapel,
0:38:12 > 0:38:15and it had the Holy Trinity of property development -
0:38:15 > 0:38:19lots of land and space, a good guide price at 75,000
0:38:19 > 0:38:22and potential for planning permission.
0:38:23 > 0:38:26And revving up to get started on this property
0:38:26 > 0:38:28were John and his wife, Jacqueline.
0:38:28 > 0:38:33Their successful bid of 106,000 was to buy the property next-door
0:38:33 > 0:38:36as they owned the adjacent car sales business and garage.
0:38:40 > 0:38:42And when we returned over four years later,
0:38:42 > 0:38:46was it the Grand Prix of showrooms or not off the starting grid yet?
0:38:46 > 0:38:50# Nothing changes round here
0:38:50 > 0:38:53# Nothing changes round here... #
0:38:53 > 0:38:55Ah, that's not exactly what I was expecting
0:38:55 > 0:38:59when the couple talked about a forecourt of classic cars.
0:39:00 > 0:39:03I woke up one morning and thought it was the wrong decision.
0:39:03 > 0:39:08More a business decision because of how many cars sales...
0:39:08 > 0:39:11People just don't survive in this game.
0:39:11 > 0:39:14It's very, very tough and I thought, "I've got enough room at the front
0:39:14 > 0:39:17"of my garage to put all my car sales."
0:39:17 > 0:39:20So it was a complete change of plan.
0:39:20 > 0:39:24Well, the plans may have changed but they didn't leave the site idle.
0:39:25 > 0:39:29We've gutted the Methodist church, we've flattened the land,
0:39:29 > 0:39:31we've taken two buildings down, we've built walls,
0:39:31 > 0:39:35we've put fences up, we've made it a lot safer.
0:39:35 > 0:39:40We then decided that the next plan would be for housing,
0:39:40 > 0:39:44which we've now got complete planning permission for.
0:39:44 > 0:39:48When I get close to retiring, then we've got to look at it then
0:39:48 > 0:39:52and whether I develop it personally or we sell the land on
0:39:52 > 0:39:55for somebody to develop it. And that is in the next stage,
0:39:55 > 0:40:00but at the moment we're still using it for all the servicing cars
0:40:00 > 0:40:03- that we have in every day.- Great.
0:40:03 > 0:40:07But what does he mean by "planning permission for housing"?
0:40:07 > 0:40:09We've got plans for four houses.
0:40:11 > 0:40:15One dormer bungalow, where we stand,
0:40:15 > 0:40:22and then three houses along the front with an archway for access.
0:40:22 > 0:40:25The planning was a little bit slow for the houses.
0:40:25 > 0:40:28We had to change quite a few different designs.
0:40:28 > 0:40:32The only thing we might do is to put down some foundations
0:40:32 > 0:40:36for one of the houses so that we keep the planning.
0:40:36 > 0:40:41If we do put footings down, then it's work-in-progress
0:40:41 > 0:40:43and we can hang onto it for a little bit longer
0:40:43 > 0:40:46so we've got the complete planning.
0:40:46 > 0:40:49I think John and Jacqueline have made a good decision here.
0:40:49 > 0:40:53Even if they don't build the three townhouses and the bungalow,
0:40:53 > 0:40:56plots of this size can be very valuable
0:40:56 > 0:40:58because of that planning permission
0:40:58 > 0:41:02and if John puts down foundations, this generally stops the permission
0:41:02 > 0:41:05from running out. Very clever indeed.
0:41:07 > 0:41:10So, is it best now to sell on the plot with planning permission
0:41:10 > 0:41:12or should they develop it themselves?
0:41:12 > 0:41:16What do two local property experts think?
0:41:16 > 0:41:19John and Jacqueline spent £106,000 at auction
0:41:19 > 0:41:23and then spend 25 grand on demolition and planning consent,
0:41:23 > 0:41:27so their total spend is £131,000.
0:41:27 > 0:41:31So, what is the plot worth as it is with the permission?
0:41:31 > 0:41:37I would estimate that the value of the site now, with the benefit
0:41:37 > 0:41:39of that planning permission, has got to be in the region
0:41:39 > 0:41:42of £130,000 - £140,000.
0:41:42 > 0:41:46I think you can market this particular plot as it stands
0:41:46 > 0:41:48for around £130,000.
0:41:49 > 0:41:53£130,000 would mean John and Jacqueline break even,
0:41:53 > 0:41:56but then they still have their car park secured
0:41:56 > 0:41:58for the business as a bonus.
0:41:59 > 0:42:01What about the long-term plan?
0:42:01 > 0:42:04The agents think if they carried through the planning permission
0:42:04 > 0:42:07for three townhouses and one bungalow,
0:42:07 > 0:42:12the townhouses would have a top resale value of £125,000 each,
0:42:12 > 0:42:15while the bungalow could be worth up to 150,000.
0:42:16 > 0:42:19That means that the built properties could be worth as much
0:42:19 > 0:42:25as £525,000 before building costs, taxes and the usual expenses.
0:42:28 > 0:42:30Yeah, I am pleased with that valuation.
0:42:30 > 0:42:33It's roughly about what we thought it would be.
0:42:33 > 0:42:36Yeah, I'm pretty pleased with that.
0:42:36 > 0:42:39# I know it's going to happen
0:42:42 > 0:42:46# Someday... #
0:42:46 > 0:42:49If John and Jacqueline are tempted to build one day,
0:42:49 > 0:42:52we'll be back to see how they get on.
0:42:52 > 0:42:55But has the site been good for their business so far?
0:42:56 > 0:43:00It's benefited us by so much.
0:43:00 > 0:43:03It's just given us so much to use
0:43:03 > 0:43:05and I would do it again if I had to, definitely.
0:43:08 > 0:43:10Well, that's it for today's three properties
0:43:10 > 0:43:13but there are plenty more where they came from.
0:43:13 > 0:43:15Join us next time for more tales from the auction rooms.
0:43:15 > 0:43:17- We will see you then. - Goodbye.- Goodbye.