0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:05Now, some people put their money into stocks
0:00:05 > 0:00:07but over the medium to long term,
0:00:07 > 0:00:11property is generally considered to be a strong and solid investment.
0:00:11 > 0:00:15There can be great bargains if you buy your home under the hammer.
0:00:41 > 0:00:43There's a wide variety of buyers
0:00:43 > 0:00:45and a big range of property on offer at an auction.
0:00:45 > 0:00:48Yes, but it's a bit of a race to get the best bargains
0:00:48 > 0:00:50and you have to be in it to win it,
0:00:50 > 0:00:54so what was on offer at the auctions we're featuring on today's show?
0:00:56 > 0:00:59In Devon, some positive thinking is required.
0:00:59 > 0:01:03The survey said that there's only one wall that's worth keeping.
0:01:03 > 0:01:06- Apart from that, it's perfect(!) - Yes.
0:01:06 > 0:01:10Whilst in Sheerness, I'm worried about extra walls.
0:01:10 > 0:01:12It would be a shame to damage such a beautiful room
0:01:12 > 0:01:15to just try and squeeze another bedroom out of it.
0:01:15 > 0:01:19And in North Shields, walls could come tumbling down.
0:01:19 > 0:01:22Not the sort of thing you do without a structural report though, is it?
0:01:22 > 0:01:23Exactly, yes.
0:01:26 > 0:01:29All of these properties have been sold at auction.
0:01:29 > 0:01:32We'll find out who bought them and what they paid for them
0:01:32 > 0:01:34when they went under the hammer.
0:01:34 > 0:01:36Sold.
0:01:40 > 0:01:43We now go back in time to 2009, and to Devon,
0:01:43 > 0:01:47where on the banks of the River Exe in the village of Lympstone,
0:01:47 > 0:01:50we first saw a property that certainly didn't match up
0:01:50 > 0:01:52to its surroundings.
0:01:53 > 0:01:56# Oh, you crawled
0:01:56 > 0:02:00# Out of the sea
0:02:00 > 0:02:04# Straight into my arms
0:02:04 > 0:02:07# Straight into my arms... #
0:02:08 > 0:02:12Well, even on a cloudy day like today and with the tide out, it is
0:02:12 > 0:02:16still spectacular so what you'd hope for is a property that can
0:02:16 > 0:02:20make the most of these quite extraordinary views.
0:02:20 > 0:02:22That's exactly what you've got.
0:02:22 > 0:02:25This is what was up for auction, 120,000 quid.
0:02:25 > 0:02:28No parking, but hey, the location couldn't be better.
0:02:30 > 0:02:33The area to the side and the front are public, and there's no garden to
0:02:33 > 0:02:38speak of, but you do have the whole of that estuary as your playground.
0:02:38 > 0:02:40As you might have gathered from the outside,
0:02:40 > 0:02:44the cottage is, well, a bit of a hodgepodge, to be honest.
0:02:44 > 0:02:47This bit here is sort of, I guess, a living area.
0:02:47 > 0:02:50Then you go through to what I imagine is the oldest part
0:02:50 > 0:02:53of the cottage underneath this fairly low archway
0:02:53 > 0:02:55into this sort of anteroom here.
0:02:55 > 0:02:58You've got stairs up to two bedrooms there.
0:02:58 > 0:03:01You've got another bedroom there and you've got this other bit
0:03:01 > 0:03:06splintering off to the front of the property. All very strange.
0:03:06 > 0:03:10The property feels like a collection of add-ons to what was once
0:03:10 > 0:03:14a beach house, and although the structure seems sound, it might
0:03:14 > 0:03:17be advisable to get a full survey just to be on the safe side.
0:03:17 > 0:03:20You've got a bathroom there.
0:03:20 > 0:03:23It's huge, actually, for the size of the place.
0:03:23 > 0:03:27And then through and up the steps to the very rear of the property,
0:03:27 > 0:03:31where you've got the kitchen, clearly in need of total renovation.
0:03:31 > 0:03:35The key thing is this is where your view is.
0:03:35 > 0:03:38This is the most marvellous part of the house
0:03:38 > 0:03:41and yet so little of the property is situated here.
0:03:41 > 0:03:43To take advantage of the sea views,
0:03:43 > 0:03:47it sounds tempting just to start moving walls around, but beware.
0:03:47 > 0:03:50The cottage is in a conservation area
0:03:50 > 0:03:53so no matter how much the layout here doesn't feel right,
0:03:53 > 0:03:56you won't have the final say on how to fix the problem.
0:03:57 > 0:04:02Upstairs, and the quirkiness is starting to get a bit annoying.
0:04:02 > 0:04:05Two bedrooms here. One at that side there.
0:04:05 > 0:04:08You've got this disastrous little corridor.
0:04:08 > 0:04:11Very low ceilings here with beams going across.
0:04:11 > 0:04:13This is the other bedroom.
0:04:13 > 0:04:16It's small. You've got big cupboards in both bedrooms
0:04:16 > 0:04:20so maybe play around with that wall and create bigger bedrooms,
0:04:20 > 0:04:23and ditch the kind of storage space.
0:04:23 > 0:04:27I'm struggling to figure out how you could improve this place
0:04:27 > 0:04:31without doing some fairly major internal modifications.
0:04:32 > 0:04:37And even if it goes for anything near its guide price of 120,000,
0:04:37 > 0:04:40it'll still take a very healthy renovation budget to get this
0:04:40 > 0:04:42place looking its best.
0:04:42 > 0:04:47This is a pretty special project, a chance to restore a wonderful
0:04:47 > 0:04:52old cottage in this lovely village, and add value to boot.
0:04:52 > 0:04:54It really is a developer's dream.
0:04:54 > 0:04:57Let's see who spotted the opportunity at the auction.
0:04:57 > 0:05:01Who's going to say to us, er... Guide, 120. Bang, straight in.
0:05:01 > 0:05:05Won't start less, he knows. Thank you. 120, I've got 120, 122, 124.
0:05:05 > 0:05:09There's three of you. 126, 128, 130,
0:05:09 > 0:05:13132, 132. 134.
0:05:13 > 0:05:17136. 138. 140.
0:05:17 > 0:05:20With several bidders playing a cat and mouse game,
0:05:20 > 0:05:24we leave the auction and return at 171,000.
0:05:24 > 0:05:26171, 172...
0:05:28 > 0:05:30175? Yes, sir, 175.
0:05:30 > 0:05:33At 175... At 175...
0:05:35 > 0:05:38At 175, once.
0:05:38 > 0:05:40At 175, second time.
0:05:40 > 0:05:44Third and last time. Are we sure and done? All out at 175.
0:05:44 > 0:05:46Sir.
0:05:46 > 0:05:50The man who beat off all the competition was Nick
0:05:50 > 0:05:55with his successful bid of 175,000.
0:05:55 > 0:05:59He lives in Northampton with his wife and son, aged 18,
0:05:59 > 0:06:01and daughter, aged 20.
0:06:01 > 0:06:04He works as a property developer of a specific kind,
0:06:04 > 0:06:08developing GP surgeries in England and Wales.
0:06:10 > 0:06:15# You're just what the doctor ordered... #
0:06:15 > 0:06:19I caught up with Nick back at the cottage to find out just what
0:06:19 > 0:06:23- attracted him to the property. - In a word, the view.- Yes.
0:06:23 > 0:06:29The view is knockout, and I actually sort of, erm, saw the details to the
0:06:29 > 0:06:31property only four days before the auction
0:06:31 > 0:06:35so I didn't have time to actually look around it before the auction.
0:06:35 > 0:06:37Did you know Lympstone then?
0:06:37 > 0:06:41Yes, I've had a boat on the mooring just literally opposite here
0:06:41 > 0:06:44for about three years so I know the village very well.
0:06:44 > 0:06:48We actually use the slipway that's directly outside here
0:06:48 > 0:06:49to get access to the boat.
0:06:49 > 0:06:52We've always said that if this property came on the market,
0:06:52 > 0:06:53we should go for it.
0:06:53 > 0:06:56So, what did you think the first time you came inside?
0:06:56 > 0:07:01I expected it to be fairly poor, but, yeah, it's quite bad in areas.
0:07:01 > 0:07:04I've seen a survey since I bought the property
0:07:04 > 0:07:09- and the survey said that there's only one wall worth keeping.- Right.
0:07:09 > 0:07:13- Which is...which wall?- That wall. - Aha! And the rest of them?
0:07:13 > 0:07:16The rest of it should be taken down and rebuilt including the roof
0:07:16 > 0:07:19and the windows and the plumbing and the electrics.
0:07:19 > 0:07:21- Apart from that, it's perfect(!) - Yes.
0:07:21 > 0:07:24Well, perfection or maybe not,
0:07:24 > 0:07:28the prospect of being the owner of one wall with a great view
0:07:28 > 0:07:31doesn't seem to have fazed Nick and he's not in a hurry.
0:07:32 > 0:07:36Certainly short-term we're going to sort of do the property up so that we
0:07:36 > 0:07:42can use it, and if two years becomes four years, then that's life really.
0:07:42 > 0:07:44# That's life
0:07:45 > 0:07:47# That's what all the people say... #
0:07:48 > 0:07:52The plans for a superficial overhaul into a holiday home might be
0:07:52 > 0:07:57a stopgap, but with Nick facing a change in his work location
0:07:57 > 0:08:00to Bristol, this holiday home might become the family's permanent
0:08:00 > 0:08:03home, which means major changes to this property.
0:08:05 > 0:08:08I think timescale will be very dependent upon the architect
0:08:08 > 0:08:10coming up with a design that we like.
0:08:10 > 0:08:13There will be a lot of toing and froing and revision of that,
0:08:13 > 0:08:18and then consultation with the planners, with also the parish
0:08:18 > 0:08:22council, and the town council to see what they would want to see
0:08:22 > 0:08:25in what is a very prominent position within the village.
0:08:25 > 0:08:28And then it's a question of putting a planning application in
0:08:28 > 0:08:31and then running through that period, which could be three months,
0:08:31 > 0:08:35four months, to actually get a decision.
0:08:35 > 0:08:39And then we'll need to get the builders and build it out.
0:08:39 > 0:08:41I would say that we're probably looking at building...
0:08:41 > 0:08:43two summers' time.
0:08:45 > 0:08:47That was back in 2009.
0:08:47 > 0:08:5018 months later, in November 2010,
0:08:50 > 0:08:54we returned to Lympstone to see how things were going.
0:08:54 > 0:08:56The cottage had a fresh coat of paint,
0:08:56 > 0:08:59but all those walls were still standing.
0:08:59 > 0:09:03Inside, there had been a much-needed make over.
0:09:08 > 0:09:12The room with the view, the kitchen, had been given a spruce up.
0:09:15 > 0:09:16As had the bathroom.
0:09:21 > 0:09:24But it was those two tiny upstairs bedrooms where Nick
0:09:24 > 0:09:26pulled a blinder.
0:09:26 > 0:09:27OK, well in this room,
0:09:27 > 0:09:30you might remember there were two rooms divided by a wardrobe,
0:09:30 > 0:09:33a funny wardrobe partition thing in the middle
0:09:33 > 0:09:36and they were just too small and pokey.
0:09:36 > 0:09:39The easy decision was to remove all the wardrobe
0:09:39 > 0:09:43and make it into the big room that we've got now.
0:09:43 > 0:09:46That room was so much better, as was the one downstairs.
0:09:47 > 0:09:51Mick spent £2,000 smartening up the interior, allowing him
0:09:51 > 0:09:54and his family to enjoy their new holiday home in comfort.
0:09:54 > 0:09:57But the long-term plan was still to sort out
0:09:57 > 0:09:59the structure of the cottage.
0:09:59 > 0:10:02It would be a decision that the building itself would make for Nick.
0:10:02 > 0:10:06Whether we redevelop or not, is going to depend on how long the roof
0:10:06 > 0:10:09and the rear wall last out for.
0:10:09 > 0:10:11At the moment, from an insulation point of view,
0:10:11 > 0:10:16the property is really bad and it's got the lowest energy rating
0:10:16 > 0:10:17I've ever seen for a property.
0:10:17 > 0:10:20I would hope the planners could be persuaded that it would be better to
0:10:20 > 0:10:26use modern materials and I would love to be able to create a,
0:10:26 > 0:10:30in many ways, a zero carbon building but a building that was
0:10:30 > 0:10:33sustainable, that you didn't have to have heating in at all.
0:10:33 > 0:10:37Nick was fairly confident that he would be able to get planning
0:10:37 > 0:10:41permission for a new build here and already had a layout in mind.
0:10:41 > 0:10:44What I'd like to be able to do is to probably turn the property
0:10:44 > 0:10:48upside down and have the bathroom and the bedrooms on the ground floor
0:10:48 > 0:10:52and to maximise the view, have a big open-plan space at first floor,
0:10:52 > 0:10:56big living room area, big kitchen area, dining area,
0:10:56 > 0:11:00so that we do get the benefit of the view throughout the whole house,
0:11:00 > 0:11:02not just in the kitchen as it is at the moment.
0:11:04 > 0:11:07That was back in November 2010.
0:11:07 > 0:11:11Join us later in the show, over three years later, to see
0:11:11 > 0:11:14if Nick got his dream home to go with that dream view.
0:11:21 > 0:11:24Leaving the seaside of the south-west behind
0:11:24 > 0:11:26and heading to the south-east coast,
0:11:26 > 0:11:29Sheerness in the Isle of Sheppey in Kent,
0:11:29 > 0:11:31is the largest town on the island.
0:11:31 > 0:11:34It was originally built as a dockyard and fort back
0:11:34 > 0:11:40in 1655 to protect the militarily important shipyards of Chatham.
0:11:40 > 0:11:44It has a bustling high street and some lovely period buildings
0:11:44 > 0:11:45and speaking of buildings...
0:11:47 > 0:11:50Now, the property I'm here to see today
0:11:50 > 0:11:53is just around the corner from all the shops of Sheerness
0:11:53 > 0:11:56and an equally quick stroll to the waterfront.
0:11:56 > 0:11:59It looks like a house, but, in fact, it's been
0:11:59 > 0:12:02used as an accountants for a number of years, although it was
0:12:02 > 0:12:07sold with planning permission to be turned back into a home.
0:12:07 > 0:12:11So, office space or house? Let's get inside and have a look.
0:12:11 > 0:12:15Oh, but the guide price is 80 to 100,000.
0:12:19 > 0:12:21Straightaway, you can see that this property has been
0:12:21 > 0:12:24used for its commercial use.
0:12:24 > 0:12:27Your little entrance office area with your glass here,
0:12:27 > 0:12:31you've got the wording on the door but it's quite nice to look up
0:12:31 > 0:12:35and see that there is still period detail in this house.
0:12:35 > 0:12:37You've got these wonderful, wonderful high ceilings
0:12:37 > 0:12:40and this really is quite a grand room
0:12:40 > 0:12:44if you look beyond the ugly office furniture over here.
0:12:44 > 0:12:49Look, you've got these amazing fireplaces, wonderful, big windows.
0:12:49 > 0:12:53I'm not quite sure about this little partition that split the room
0:12:53 > 0:12:57into two, but it's quite unusual coming into a space like this.
0:12:57 > 0:13:01I like the fact that they've added the bits they've needed,
0:13:01 > 0:13:03the accountants that were here before.
0:13:03 > 0:13:05You look up and you can see,
0:13:05 > 0:13:07quite happily sitting next to each other,
0:13:07 > 0:13:11strip lighting and a beautiful period feature ceiling rose.
0:13:11 > 0:13:14I mean that is gorgeous.
0:13:14 > 0:13:17I love the fact that the heart hasn't been ripped out
0:13:17 > 0:13:20of this place and it really is still quite beautiful.
0:13:22 > 0:13:26# My heart skips, skips, skips, skips, skips a beat... #
0:13:33 > 0:13:36I bet there are also hidden features here, beautiful floorboards,
0:13:36 > 0:13:39original tiles in the hall, perhaps.
0:13:39 > 0:13:44The ground floor is one big space separated by a thin partition...
0:13:47 > 0:13:49..with the kitchenette and toilet at the back.
0:13:51 > 0:13:54Downstairs on the lower ground floor, there is a large open
0:13:54 > 0:14:01plan area, another loo and this floor has its own separate entrance.
0:14:03 > 0:14:06Moving up to the first floor, there's a good-sized room
0:14:06 > 0:14:09with another period fireplace and at the front,
0:14:09 > 0:14:12a gorgeous full-width room which could be turned
0:14:12 > 0:14:14into a dream of a bedroom.
0:14:14 > 0:14:17Up on the top floor, there's a large bedroom which has been
0:14:17 > 0:14:21left as it is and I suspect the loo, utility and storage cupboard
0:14:21 > 0:14:24at the back have been made out of what was once a double bedroom.
0:14:28 > 0:14:32The fire escape may be practical but it sure ain't pretty.
0:14:32 > 0:14:34Neither is this small yard.
0:14:34 > 0:14:37The obvious downside is there's no off-street parking
0:14:37 > 0:14:40but could this office make a purr-fect period home?
0:14:41 > 0:14:43Well, the good news is, there are plans
0:14:43 > 0:14:46and planning permission already in place.
0:14:46 > 0:14:50The plans that were passed suggested putting a kitchen
0:14:50 > 0:14:53and breakfast room down there on the lower ground floor,
0:14:53 > 0:14:55not changing any walls at all,
0:14:55 > 0:14:58keeping the ground floor layout the same and calling it
0:14:58 > 0:15:02a dining room/lounge with a bathroom in place of the kitchenette.
0:15:02 > 0:15:07Up here, it's two bedrooms on each floor and two shower rooms,
0:15:07 > 0:15:12very minimal structure work needed, but is it the right thing to do?
0:15:12 > 0:15:20# Do the right thing, do the right thing, yeah...#
0:15:21 > 0:15:24If you wanted to split this house into flats, you'd have to
0:15:24 > 0:15:29reapply for planning permission, so let's weigh up the options.
0:15:29 > 0:15:32I'm really not sure turning that place back into one house is
0:15:32 > 0:15:34the right course of action. Why?
0:15:34 > 0:15:38It's on a busy main road, there's no parking, there is no
0:15:38 > 0:15:42garden to speak of and even though the conversion would be an easy one,
0:15:42 > 0:15:45it would cost you a fair bit of cash.
0:15:45 > 0:15:49Once you're done, would you make any money? Probably not.
0:15:49 > 0:15:54There's a five-bedroomed house nearby on for 145 grand,
0:15:54 > 0:15:55not on a main road.
0:15:56 > 0:15:59No, that place screams one thing to me... Flats.
0:16:00 > 0:16:03Is it really as easy as that? Of course it's not!
0:16:03 > 0:16:06This whole area is actually on a flood plain.
0:16:06 > 0:16:09That means it's almost impossible to get planning
0:16:09 > 0:16:12permission for bedrooms in basements or on the ground floor,
0:16:12 > 0:16:15so what do we do with this perplexing property?
0:16:15 > 0:16:19With a guide price of £80-£90,000,
0:16:19 > 0:16:21we asked an estate agent her opinion.
0:16:23 > 0:16:28I think I would go to make it into two flats with the office
0:16:28 > 0:16:29space in the basement,
0:16:29 > 0:16:33because that would offer you the best return on your money.
0:16:33 > 0:16:36So, an office space in the basement would certainly solve those
0:16:36 > 0:16:39planning permissions regarding the flood plain,
0:16:39 > 0:16:41but how do the numbers stack up?
0:16:41 > 0:16:44Would flats be more profitable than a house?
0:16:44 > 0:16:50If it's renovated to a high standard as a four bedroom house, £150,000.
0:16:50 > 0:16:52One to two bedroom properties in this area
0:16:52 > 0:16:54would achieve around £75,000.
0:16:54 > 0:16:58OK, so two flats would be worth the same as the whole
0:16:58 > 0:17:01house on the sales markets but with the flats option,
0:17:01 > 0:17:04you do have the basement as a separate unit.
0:17:04 > 0:17:08The agent reckons a four bedroom house would get £850
0:17:08 > 0:17:11per calendar month, so what if you were to rent out
0:17:11 > 0:17:14two flats and a commercial space in the basement?
0:17:14 > 0:17:20A one bedroom property would be £450 per calendar month.
0:17:20 > 0:17:24Two bedroom property, 575 per calendar month.
0:17:24 > 0:17:29The basement part as an office would achieve around £100 per week.
0:17:30 > 0:17:31Imagine, if you will, then,
0:17:31 > 0:17:35one two bed and a one-bedroom property and the commercial space.
0:17:36 > 0:17:42You'd be looking at £1425 coming in per calendar month.
0:17:42 > 0:17:44That's over 17 grand a year.
0:17:45 > 0:17:49With a good plan that works with those flood plain regulations,
0:17:49 > 0:17:51your profits could spiral upwards.
0:17:53 > 0:17:57I think this is a couple of flats just waiting to happen.
0:17:57 > 0:18:00Let's see who bought it and what they thought at the auction.
0:18:01 > 0:18:05Where do you want to start me? Start at 75. 75, I'm on the way.
0:18:05 > 0:18:10£75,000 and eight, 78, 78, I have and 80.
0:18:10 > 0:18:14At £80,000. 85? Yes?
0:18:14 > 0:18:1985, I've got and 90, 90, I'm looking for. At 90.
0:18:19 > 0:18:22At £85,000 I'm bid, for the first time at 85
0:18:22 > 0:18:25if you're not going to bid any further, for the second time
0:18:25 > 0:18:31at £85,000, at £85,000, third and final bid, are you all done?
0:18:31 > 0:18:32Yours, Sir, for 85,000.
0:18:34 > 0:18:38The hammer fell in the middle of the guide price and that £85,000
0:18:38 > 0:18:43final bid was made by self-employed plumber, John, and his wife, Karen.
0:18:44 > 0:18:47The pair have been renovating and developing properties for a
0:18:47 > 0:18:51while now, including a building just three doors down from this one.
0:18:52 > 0:18:55They live in London so I met them to find out why they were
0:18:55 > 0:18:59so keen for another slice of the Sheerness property market.
0:18:59 > 0:19:01- Congratulations.- Thank you.
0:19:01 > 0:19:03Why did you want to buy this house?
0:19:03 > 0:19:06Well, we come to the island quite a lot, we've got a caravan up
0:19:06 > 0:19:09the road and we was just walking past and we noticed a sign going up.
0:19:09 > 0:19:13I think this building itself is going to suit
0:19:13 > 0:19:17a basement office and two flats.
0:19:17 > 0:19:19A three-bedroom flat, hopefully,
0:19:19 > 0:19:22and a two-bedroom flat using a loft conversion at the same time.
0:19:22 > 0:19:25Well, that is amazing. So, how are you hoping to do that?
0:19:25 > 0:19:27Well, it's the biggest development we've ever got involved with.
0:19:27 > 0:19:29We've done small developments.
0:19:29 > 0:19:32I've worked out the figures, what I think we need to spend
0:19:32 > 0:19:36and the finish that we require
0:19:36 > 0:19:39for the completion of this property.
0:19:39 > 0:19:42What budget are you looking at to do this conversion?
0:19:42 > 0:19:44We looked on about £40,000.
0:19:44 > 0:19:47OK, so you've got £40,000 to put down to try and get this converted.
0:19:47 > 0:19:49- Yeah.- What's your time frame?
0:19:49 > 0:19:53Depending on when we get the planning permission, four months.
0:19:53 > 0:19:57I'm so glad John and Karen have decided to go down the route
0:19:57 > 0:19:59of getting new planning permission.
0:19:59 > 0:20:01And, as long as those plans are approved,
0:20:01 > 0:20:04they want to rent out the two flats and the offices they create.
0:20:04 > 0:20:08But I'm intrigued by how they want to carve up the space for the flats.
0:20:08 > 0:20:12The top floor and loft will be a two-bed flat
0:20:12 > 0:20:15and the first and ground floor will be a three-bed flat.
0:20:16 > 0:20:18Three-bed?
0:20:18 > 0:20:21Hang on a minute. A little alarm bell has just gone off in my head.
0:20:25 > 0:20:27This floor that we're actually standing on,
0:20:27 > 0:20:30you're looking at putting three bedrooms here.
0:20:30 > 0:20:33Do you think that might be a little bit of a squeeze?
0:20:33 > 0:20:37No, not really. I mean, this room is far too big for one bedroom.
0:20:37 > 0:20:41No-one would expect to have one bedroom at this size.
0:20:41 > 0:20:43I've never seen a bedroom this big before,
0:20:43 > 0:20:45it's a lot bigger than we would get in London.
0:20:45 > 0:20:48- Maybe it's a fair size for out in Kent.- That is the point here.
0:20:48 > 0:20:49We're not in London.
0:20:49 > 0:20:51You get a lot more space for your money
0:20:51 > 0:20:54and it would be a shame to damage such a beautiful room as this,
0:20:54 > 0:20:57to just try and squeeze another bedroom out of it, but I'm sure
0:20:57 > 0:21:00it financially stacks up for you and that is what you're doing this for.
0:21:00 > 0:21:03Yeah, the rents will be higher if you add the extra bedroom.
0:21:03 > 0:21:05- Absolutely.- Quite a lot over a year, or over so many years,
0:21:05 > 0:21:07it will be quite a few thousand pounds.
0:21:07 > 0:21:10The interesting thing about this property, in my eyes,
0:21:10 > 0:21:13is that when I first walked in, I absolutely loved the building.
0:21:13 > 0:21:16And I love the fact that whoever was here before,
0:21:16 > 0:21:17they didn't rip the heart out of it.
0:21:17 > 0:21:20But are you going to be ripping the heart out of it or will you
0:21:20 > 0:21:21try to develop sympathetically?
0:21:21 > 0:21:24We're trying to do it with keeping some character,
0:21:24 > 0:21:27maybe we'll leave some of the fireplaces in
0:21:27 > 0:21:29as a focal point in the rooms.
0:21:29 > 0:21:33If they can work around the ceilings without damaging the ceiling roses
0:21:33 > 0:21:36- and the cornices, I'm not quite sure.- I'm worried.
0:21:36 > 0:21:38What if you don't get planning permission?
0:21:38 > 0:21:41Have you got a Plan B or Plan C, in case this doesn't take shape?
0:21:41 > 0:21:42Obviously, if we don't get it,
0:21:42 > 0:21:46then it will be a four bedroom house again, with a separate office.
0:21:46 > 0:21:48That's if we can't get the permission.
0:21:48 > 0:21:52- So, last resort, it will have to be the family house.- Yeah.
0:21:52 > 0:21:55Guys, congratulations, I really hope you get Plan A passed.
0:21:55 > 0:21:58I'll look forward to seeing what you do here. Well done.
0:21:58 > 0:22:01- Lovely to meet you. - Thanks a lot, Lucy.
0:22:01 > 0:22:04I do hope some of those original features survive
0:22:04 > 0:22:06this ambitious refurbishment.
0:22:06 > 0:22:08But I do think John and Karen have the right idea
0:22:08 > 0:22:10for thinking profit and rental.
0:22:10 > 0:22:13And I do hope they get the permission they want.
0:22:13 > 0:22:16You can find out what happens later on in the show.
0:22:18 > 0:22:21Coming up, it's a tale of two budgets in North Shields,
0:22:21 > 0:22:23result, good.
0:22:23 > 0:22:27Obviously, in terms of the budget, we've kind of squashed it.
0:22:29 > 0:22:31But in Sheerness, Kent, hmm...
0:22:31 > 0:22:33Not so good.
0:22:33 > 0:22:35Well, the budget did go out the window.
0:22:35 > 0:22:37We've gone quite over the budget.
0:22:41 > 0:22:44It's back now to the lovely village of Lympstone
0:22:44 > 0:22:48on the estuary of the River Exe in Devon where, earlier in the show,
0:22:48 > 0:22:51we met Nick from Northampton, who,
0:22:51 > 0:22:57back in 2009 had bought this three-bedroom property for £175,000.
0:22:57 > 0:23:01The cottage had seen better days, but what it lacked
0:23:01 > 0:23:05in a cosy cottage feel, it made up for in spades with the view.
0:23:05 > 0:23:08Nick's short-term plan was to spruce the place up
0:23:08 > 0:23:11and have a base for the family to enjoy their boat here.
0:23:11 > 0:23:13And, then, planning permission permitting,
0:23:13 > 0:23:16to turn it into a dream house.
0:23:16 > 0:23:19And it sounded like this old cottage really did have to go.
0:23:20 > 0:23:25- The survey said that there's only one wall that's worth keeping.- Right.
0:23:25 > 0:23:27- Which is, which wall?- That wall.
0:23:27 > 0:23:29Ah. And the rest of them?
0:23:29 > 0:23:31The rest of it should be taken down and rebuilt,
0:23:31 > 0:23:35including the roof and the windows and the plumbing and the electrics.
0:23:35 > 0:23:38- Apart from that, it's perfect(!) - Yeah.
0:23:38 > 0:23:42When we returned in 2010, we expected to see a holiday home,
0:23:42 > 0:23:46and that's exactly what we got. The whole place had a lovely feel.
0:23:46 > 0:23:50A new kitchen and a much improved upstairs made all the difference.
0:23:50 > 0:23:52Being in a conservation area,
0:23:52 > 0:23:55Nick knew his long-term plan would take a while,
0:23:55 > 0:24:02but he did have £200,000 to £250,000 budget to create something fabulous.
0:24:02 > 0:24:05What I'd like to be able to do is to probably turn the property
0:24:05 > 0:24:07upside down and have the bathroom
0:24:07 > 0:24:11and the bedrooms on the ground floor, and then to maximise the view,
0:24:11 > 0:24:14have a big open-plan space at first floor, big living room area,
0:24:14 > 0:24:17big kitchen area, dining area,
0:24:17 > 0:24:21so that we do get the benefit of the view throughout the whole house,
0:24:21 > 0:24:23not just in the kitchen, as it is at the moment.
0:24:23 > 0:24:28And just over three years later, it's now time to return to Lympstone
0:24:28 > 0:24:31to see if Nick's dream home has become a reality.
0:24:33 > 0:24:36And, wow! Amazing.
0:24:36 > 0:24:42The weather might be a real let down but this fantastic house sure isn't.
0:24:44 > 0:24:48The new house now has two floors, with a stunning glazed gable end
0:24:48 > 0:24:50and a glass balcony.
0:24:50 > 0:24:54But if that looks impressive, wait till you step inside.
0:24:59 > 0:25:02Nick has got his upside-down house,
0:25:02 > 0:25:04with the original upstairs bedrooms
0:25:04 > 0:25:07now providing one half of a huge top floor,
0:25:07 > 0:25:10containing a mightily impressive living area
0:25:10 > 0:25:13complete with that balcony giving fantastic views,
0:25:13 > 0:25:16even on a day like today.
0:25:16 > 0:25:18And even before seeing the rest of the house,
0:25:18 > 0:25:22it's not hard to see why this is Nick's favourite room.
0:25:22 > 0:25:24The beauty of the top floor is it's all open-plan,
0:25:24 > 0:25:29and it sort of encompasses three different transition areas.
0:25:29 > 0:25:31There's the sort of snug area in the corner
0:25:31 > 0:25:33where I've got the fire and the television,
0:25:33 > 0:25:35and that's where it's all contained over there,
0:25:35 > 0:25:40but I think, for me, the best part of this area is the kitchen.
0:25:40 > 0:25:42And the fact it's right in the centre,
0:25:42 > 0:25:44we've got an island unit
0:25:44 > 0:25:47and I can be working at the island unit and enjoying the view,
0:25:47 > 0:25:50which even on a wet day like it is today,
0:25:50 > 0:25:53is still there, and it's nice to look at.
0:25:53 > 0:25:57But it's also the scenery down below that's impressive.
0:25:57 > 0:26:01There are two bedrooms leading off from the spacious hall,
0:26:01 > 0:26:05with the site of the old kitchen now home to the new master bedroom,
0:26:05 > 0:26:07complete with its own en suite.
0:26:09 > 0:26:11While at the rear is the second bedroom.
0:26:13 > 0:26:16And that lovely spacious hall contains the family bathroom
0:26:16 > 0:26:17and utility room.
0:26:19 > 0:26:20Just as Nick planned,
0:26:20 > 0:26:23the building now has a high energy-efficient rating,
0:26:23 > 0:26:26and the wood, glass and brick construction fits in
0:26:26 > 0:26:28sympathetically with the village.
0:26:28 > 0:26:33The design of the house almost was partly being modern
0:26:33 > 0:26:35and being 21st century.
0:26:35 > 0:26:36That was important.
0:26:36 > 0:26:40But also, it had to respect the fact that it's in a conservation area,
0:26:40 > 0:26:43and actually it's a very important part of the village.
0:26:43 > 0:26:47One thing that is definitely this century is energy rating.
0:26:47 > 0:26:51The original cottage had the lowest rating at G.
0:26:51 > 0:26:52Brrrr!
0:26:52 > 0:26:55But this house has a cosy B rating.
0:26:55 > 0:26:58We had to communicate with all the neighbours,
0:26:58 > 0:27:00and also with the parish council.
0:27:00 > 0:27:02So the feedback we had was vital.
0:27:02 > 0:27:04Then the architect and I made one or two changes
0:27:04 > 0:27:07before actually submitting the planning application.
0:27:07 > 0:27:09The planning went through very smoothly,
0:27:09 > 0:27:12and I think that initial communication helped a great deal.
0:27:12 > 0:27:14The interior decor is neutral,
0:27:14 > 0:27:18with Nick preferring to let the natural light and space
0:27:18 > 0:27:19do the talking.
0:27:19 > 0:27:21And the dark tones of the furnishings
0:27:21 > 0:27:23help provide a warm atmosphere.
0:27:23 > 0:27:25We've gone for a number of things.
0:27:25 > 0:27:27Without being too cliched,
0:27:27 > 0:27:29the floor - I wanted to have a solid floor,
0:27:29 > 0:27:32and we found a limestone floor called "seashell".
0:27:32 > 0:27:34And within it, there are lots of fossils,
0:27:34 > 0:27:37which I think is kind of a nice touch.
0:27:37 > 0:27:39Nick moved to the village three years ago,
0:27:39 > 0:27:41and was able to project-manage the development.
0:27:41 > 0:27:44And now that the old dinosaur of a cottage
0:27:44 > 0:27:46has been consigned to the past,
0:27:46 > 0:27:49a change of circumstances has helped him make a big decision.
0:27:49 > 0:27:51I still want it as a holiday home.
0:27:51 > 0:27:53It's become a permanent holiday home.
0:27:53 > 0:27:57That sounds a bit cliched, but it is actually a fantastic place to live.
0:27:59 > 0:28:02After nearly five years of patience, Nick has finally realised
0:28:02 > 0:28:06his vision of life near the water in a home befitting of its location.
0:28:06 > 0:28:12But did he achieve his dream within his £200,000-£250,000 budget?
0:28:12 > 0:28:16I did sort of reach the upper end of the estimate,
0:28:16 > 0:28:20because once you factor in all the fees, utility providers,
0:28:20 > 0:28:26and council fees, we did end up getting to the £250,000 mark.
0:28:29 > 0:28:32Add in the £250,000 spent
0:28:32 > 0:28:34to his purchase price of £175,000
0:28:34 > 0:28:39means that Nick's dream home has cost him £425,000.
0:28:39 > 0:28:42Can two agents fail to be impressed?
0:28:44 > 0:28:46We start with the agent who first saw the property
0:28:46 > 0:28:49in its original state back in 2009.
0:28:52 > 0:28:55I can't believe what the gentleman has done to the property.
0:28:55 > 0:28:56You know, he bought a wreck,
0:28:56 > 0:28:59and he's turned it into an absolute dream palace.
0:28:59 > 0:29:02I'm actually struggling to find the negative point about the property.
0:29:02 > 0:29:05I really am. That really is a genuine, honest appraisal.
0:29:05 > 0:29:06I think the property's beautiful,
0:29:06 > 0:29:09and I actually wouldn't have changed or done anything differently.
0:29:09 > 0:29:11The main selling features to the property
0:29:11 > 0:29:13are the location and the view.
0:29:13 > 0:29:16And it's been finished incredibly well
0:29:16 > 0:29:18with the large open-plan living upstairs,
0:29:18 > 0:29:21and the main bedroom looking onto the river.
0:29:22 > 0:29:25But will the house prove a good investment for Nick?
0:29:25 > 0:29:28Remember, he spent £425,000.
0:29:28 > 0:29:30What sort of profit could he make
0:29:30 > 0:29:33if he ever did decide to sell the house?
0:29:33 > 0:29:37It could range anywhere literally from £500,000-£600,000.
0:29:37 > 0:29:41An estate agent may even ask for £700,000 on the open market.
0:29:41 > 0:29:44The value of the property is approximately £500,000.
0:29:44 > 0:29:47You could get a little bit more,
0:29:47 > 0:29:49depending on who the buyers are at the time.
0:29:49 > 0:29:52Well, if we keep our feet on the ground,
0:29:52 > 0:29:57that £500,000 valuation would give Nick a possible £75,000 profit.
0:29:59 > 0:30:02But this is a dream property, and if we took that top valuation,
0:30:02 > 0:30:07the dream profit would be £275,000.
0:30:07 > 0:30:10If somebody knocked on the door now and said, "Here's £1 million,"
0:30:10 > 0:30:12will I move out?
0:30:12 > 0:30:15Then the answer would be no.
0:30:15 > 0:30:18And that same philosophy is applied to rentals,
0:30:18 > 0:30:22with even the agents' valuations at £1,200 per calendar month
0:30:22 > 0:30:26not swaying Nick an inch from his desire to live here.
0:30:26 > 0:30:28Because after five years of waiting and planning,
0:30:28 > 0:30:31and the energy invested in this property,
0:30:31 > 0:30:34it is one dream that won't be sold on.
0:30:34 > 0:30:36I love living here.
0:30:36 > 0:30:41It's got everything, from the view out to actually the village.
0:30:41 > 0:30:43Great facilities.
0:30:43 > 0:30:45The sailing club, cycling,
0:30:45 > 0:30:49and to live in it and actually call it home now is great,
0:30:49 > 0:30:53and I can see myself living here for many, many years.
0:30:56 > 0:31:00Well, Devon doesn't have the monopoly on waterside charm.
0:31:00 > 0:31:02How about this idyllic spot
0:31:02 > 0:31:05eight miles east of Newcastle upon Tyne?
0:31:05 > 0:31:08This is the Fish Quay in North Shields
0:31:08 > 0:31:11on the north bank of the River Tyne.
0:31:11 > 0:31:14It's an area steeped in maritime history.
0:31:14 > 0:31:16But there's also a tenuous link with property,
0:31:16 > 0:31:19because the "shields" bit of North Shields
0:31:19 > 0:31:21actually derives from a Middle English term
0:31:21 > 0:31:24meaning "temporary huts for fishermen".
0:31:24 > 0:31:26# Fish, fish, fish, fish, fish
0:31:26 > 0:31:28# Fish, fish, fish, fish
0:31:28 > 0:31:30# Eating fish... #
0:31:32 > 0:31:35The port here dates from around 1225,
0:31:35 > 0:31:37when the Priory of Tynemouth,
0:31:37 > 0:31:40built on that headland in the mouth of the River Tyne,
0:31:40 > 0:31:43needed to provide fish for the Priory.
0:31:43 > 0:31:44Over the centuries,
0:31:44 > 0:31:47North Shields exported salt from the local salt pans,
0:31:47 > 0:31:49coal from the local collieries,
0:31:49 > 0:31:52and built and repaired ships in the docks.
0:31:52 > 0:31:54What a fascinating place to live.
0:31:54 > 0:31:56Who wouldn't want to head down to the auction
0:31:56 > 0:31:58to see what was on offer?
0:32:01 > 0:32:05Well, the property is located in the grounds of a church,
0:32:05 > 0:32:09but apparently, it's not that easy to find.
0:32:11 > 0:32:15It's down this path somewhere.
0:32:15 > 0:32:18Apparently a mews cottage.
0:32:18 > 0:32:21The guide price was £45,000 plus.
0:32:21 > 0:32:25Hopefully it will be worth the effort.
0:32:25 > 0:32:27It's very cute. I have to say that.
0:32:27 > 0:32:30And, in fact, here it is. It's the middle one there.
0:32:30 > 0:32:32Let's see if I can fit inside.
0:32:34 > 0:32:38# All the small things... #
0:32:38 > 0:32:41Good things come in small packages. Let's hope so.
0:32:42 > 0:32:44You walk through the front door
0:32:44 > 0:32:47and immediately you're hit by this fairly low ceiling,
0:32:47 > 0:32:50which does give it a little bit of a kind of snug feel,
0:32:50 > 0:32:52or you could read into that claustrophobic,
0:32:52 > 0:32:55but a nice size window at the front.
0:32:55 > 0:32:58I like the sort of parquet flooring too.
0:32:58 > 0:33:01You've basically got one room here,
0:33:01 > 0:33:04which is obviously doubling as a lounge/kitchen.
0:33:04 > 0:33:06They've been a little bit adventurous
0:33:06 > 0:33:08with how they've built the kitchen.
0:33:08 > 0:33:12We've got this sort of little breakfast bar area,
0:33:12 > 0:33:14and a little bijou kitchenette.
0:33:14 > 0:33:16But, you know, I guess it works.
0:33:16 > 0:33:18It's not ideal, but hey.
0:33:18 > 0:33:22At the back here, you've got a little utility area and your loo.
0:33:22 > 0:33:23That's the only loo in the property.
0:33:23 > 0:33:26If you're expecting more, you're not going to get it,
0:33:26 > 0:33:27because that's it for downstairs.
0:33:27 > 0:33:29Let's go upstairs.
0:33:30 > 0:33:32Cosy or claustrophobic?
0:33:32 > 0:33:35Unique or just plain weird? You decide.
0:33:35 > 0:33:38There isn't much light down here,
0:33:38 > 0:33:41and whoever buys it will need to be full of imagination and creativity
0:33:41 > 0:33:43to get the most out of it.
0:33:43 > 0:33:46Oh, and also under 6ft, preferably.
0:33:49 > 0:33:53Well, there's a pleasant surprise. Not at all what I was expecting.
0:33:53 > 0:33:56Someone has obviously gone up into the attic space at some point
0:33:56 > 0:33:58to create this roof light here,
0:33:58 > 0:34:02which shed loads and loads of natural daylight into this room,
0:34:02 > 0:34:04which is a real pleasure.
0:34:04 > 0:34:06You've really just got one major space,
0:34:06 > 0:34:09and this small little anterior there.
0:34:09 > 0:34:13And, strangely, it feels a lot less claustrophobic than downstairs.
0:34:13 > 0:34:15One slight issue you have got up here
0:34:15 > 0:34:18is the fact that you've got this metal bar.
0:34:18 > 0:34:21You've got the beam here, and then this is a sort of tie bar.
0:34:21 > 0:34:24Whatever you do, you do not want to be cutting through this
0:34:24 > 0:34:27with your hacksaw, because it's holding the place together.
0:34:27 > 0:34:29# Can't touch this
0:34:30 > 0:34:32# Can't touch this... #
0:34:32 > 0:34:35Another possible problem is that big piece of missing plaster,
0:34:35 > 0:34:38which will need some expert attention.
0:34:39 > 0:34:41However, it is a lot brighter here,
0:34:41 > 0:34:43and someone has made better use of the space.
0:34:45 > 0:34:47Well, if there's a downside to the property,
0:34:47 > 0:34:51it's that there isn't a lot of outside space - I mean, that's it.
0:34:51 > 0:34:54At least you've got no lawns to mow, I suppose.
0:34:54 > 0:34:56If you are renting the property out,
0:34:56 > 0:35:00then actually not having too much garden is a bonus.
0:35:00 > 0:35:03For a family home, you'd probably want a little bit more.
0:35:04 > 0:35:07It could, however, suit a single person, a couple,
0:35:07 > 0:35:10or maybe even be turned into a holiday let.
0:35:10 > 0:35:13After all, we are in pretty North Shields,
0:35:13 > 0:35:14so why not take advantage?
0:35:15 > 0:35:18Well, one of the great charms of this place obviously
0:35:18 > 0:35:21is its secluded nestled away location.
0:35:21 > 0:35:24But when it comes to doing renovation works,
0:35:24 > 0:35:26that could turn into a bit of a bugbear,
0:35:26 > 0:35:29because not only have you got to get waste materials out
0:35:29 > 0:35:32and into a skip, and where are you going to park that?
0:35:32 > 0:35:34But you've also got to get building materials in,
0:35:34 > 0:35:37and down these little sort of pathways
0:35:37 > 0:35:39and through narrow archways.
0:35:39 > 0:35:41I mean, it is going to be a problem.
0:35:41 > 0:35:43The other issue is that the street out here
0:35:43 > 0:35:45is residents-only parking,
0:35:45 > 0:35:50or permit parking, and where's your builder going to park?
0:35:50 > 0:35:54So it's all stuff which is going to add to the cost of any renovation.
0:35:54 > 0:35:57Another thing I might be querying
0:35:57 > 0:36:01is whether there are any planning issues to think about here.
0:36:01 > 0:36:04Is this a conservation area, for instance?
0:36:04 > 0:36:05I don't think I would care, to be honest,
0:36:05 > 0:36:08because for anything like that guide price at £45,000,
0:36:08 > 0:36:11it's a steal.
0:36:11 > 0:36:13An agent from the auction house selling it
0:36:13 > 0:36:15came along to give me her thoughts.
0:36:17 > 0:36:20It's very quirky and very different to some of the houses
0:36:20 > 0:36:22that you'll find in North Shields.
0:36:22 > 0:36:24in fact, I would probably say
0:36:24 > 0:36:26you won't find anything quite like this again.
0:36:26 > 0:36:28When I first came into this property,
0:36:28 > 0:36:31it was evident straightaway that that kitchen
0:36:31 > 0:36:33needed to be taken from the lounge.
0:36:33 > 0:36:35You're limited on the space that you've got there
0:36:35 > 0:36:37for your limit of accommodation.
0:36:37 > 0:36:39I would actually take the kitchen through into the back,
0:36:39 > 0:36:42which would be fantastic.
0:36:42 > 0:36:43Coming up the stairs,
0:36:43 > 0:36:46the only other thing that I thought would be quite good there
0:36:46 > 0:36:48was putting a spiral staircase in,
0:36:48 > 0:36:51and then on this level where the bedroom is,
0:36:51 > 0:36:53is bring the bathroom,
0:36:53 > 0:36:55and then you could decorate it,
0:36:55 > 0:36:58divide it off with the decorative glass brick blocks
0:36:58 > 0:37:01that you get now, and then have your bathroom.
0:37:01 > 0:37:04You know, bedroom, en suite - however you want to use it.
0:37:04 > 0:37:08Wow! Property agent or interior designer?
0:37:08 > 0:37:10Some really interesting ideas for changing the space.
0:37:10 > 0:37:13But all these changes would cost a lot of money.
0:37:13 > 0:37:16In such a small house, would it be worth it?
0:37:17 > 0:37:21If the owner carries out the room layout changes that I've suggested,
0:37:21 > 0:37:23they will be able to bring the property to the open market
0:37:23 > 0:37:25for £90,000.
0:37:25 > 0:37:30If I was to keep the property as it is, and redo the bathroom,
0:37:30 > 0:37:32the kitchen, and general decoration,
0:37:32 > 0:37:34I would say, generally, bring it to the market,
0:37:34 > 0:37:37you're looking around £75,000.
0:37:37 > 0:37:39Taking into account renovation costs,
0:37:39 > 0:37:43it's as either way, you could make a profit.
0:37:43 > 0:37:45And the agent thinks that a remodelled property
0:37:45 > 0:37:49could fetch around £400 a calendar month.
0:37:49 > 0:37:51Well, small though it may be,
0:37:51 > 0:37:53it's hard not to fall in love with the charm
0:37:53 > 0:37:55of this particular property,
0:37:55 > 0:37:58and these places don't come up very often at all.
0:37:58 > 0:38:02So I'm sure it will be a very popular lot at the auction.
0:38:05 > 0:38:10Lot number 22 is the property at... Asking for £45,000.
0:38:10 > 0:38:1446. 47, I have.
0:38:14 > 0:38:16Any advance on 47?
0:38:16 > 0:38:1948, thank you, sir.
0:38:19 > 0:38:2250,000. Thank you. At 50,000.
0:38:22 > 0:38:2451.
0:38:24 > 0:38:2651.
0:38:26 > 0:38:2952. I have got 53, the lady.
0:38:29 > 0:38:3154. 54,500.
0:38:31 > 0:38:3454, I'm selling. May I say another 500?
0:38:34 > 0:38:37All done at 54,000. All done.
0:38:37 > 0:38:41The gentleman by the bar at 54,000.
0:38:42 > 0:38:44# Let's get ready to rumble
0:38:44 > 0:38:47# Watch us wreck the mic Watch us wreck the mic
0:38:47 > 0:38:49# Watch us wreck the mic...psych. #
0:38:49 > 0:38:54The successful bidder with 54,000 is local man Ian.
0:38:54 > 0:38:58Father of three, he owns an electrical contracting company.
0:38:58 > 0:39:03He and his wife Lindsey have renovated several properties.
0:39:03 > 0:39:05I caught up with him
0:39:05 > 0:39:08back at the house to find out his plans for this one.
0:39:09 > 0:39:11Ian, great to meet you.
0:39:11 > 0:39:13- Congratulations. - Thank you very much.
0:39:13 > 0:39:16Tell me, if it's not obvious, why you wanted to buy this little place.
0:39:16 > 0:39:21We seen it quite a few year back, me and me wife, when we were first looking for properties,
0:39:21 > 0:39:24and when it came up for sale, it just seemed meant to be.
0:39:24 > 0:39:27When we came to view it, I knew I wanted to buy it straightaway.
0:39:27 > 0:39:30It's a really sort of unusual location
0:39:30 > 0:39:34- and a little collection of these houses, isn't it?- It is, yeah.
0:39:34 > 0:39:37- It's very quirky.- Tell me what you're going to do to it.
0:39:37 > 0:39:39- We've got some walls to come out.- OK.
0:39:39 > 0:39:42Obviously, the electrics will be checked, gas will be checked.
0:39:42 > 0:39:47- And then, moving the kitchen from this end of the house to the back end of the house.- OK.
0:39:47 > 0:39:51- And moving the bathroom from downstairs to upstairs. - Will the stairs stay where they are?
0:39:51 > 0:39:56- Hopefully, the stairs will stay where they are, yes.- So squeezing the kitchen in at the back.- Exactly.
0:39:56 > 0:40:00There isn't much ventilational light. That's the only downside to the property.
0:40:00 > 0:40:03- Is it quite window-less.- It is, yes. Towards the back end of the property,
0:40:03 > 0:40:07- we're going to have plenty of down lighting.- Right.- A few more wall lights in this area.
0:40:07 > 0:40:09Just as much light as we can get into the place,
0:40:09 > 0:40:13without having to board the ceilings cos I think it gives it more height,
0:40:13 > 0:40:16- not having the board ceilings. - Upstairs, what's the plan there?
0:40:16 > 0:40:21As you go up the stairs, to the left, there's a small voided space.
0:40:21 > 0:40:24- We're going to make that into the bathroom.- OK.
0:40:24 > 0:40:28There's a main support beam running right the way through the centre of the property.
0:40:28 > 0:40:33- We're going to get a structural survey done and, fingers crossed, we can get that tie removed.- Oh.
0:40:33 > 0:40:37If we can get that removed, it means we've got enough space to get a shower in there as well.
0:40:37 > 0:40:42- Right. Not the sort of thing you do without a structural report. - Exactly. Yes. Yeah!
0:40:42 > 0:40:45Getting that checked will be essential.
0:40:47 > 0:40:50# Let's stay together... #
0:40:50 > 0:40:56The good news for Ian is that he'd set aside £65,000 to buy this
0:40:56 > 0:41:01property and had earmarked £10-15,000 to do the work he wanted.
0:41:01 > 0:41:05Having paid just 54,000, it's all looking rosy on the financial side.
0:41:07 > 0:41:11So what are his plans, once the work is completed?
0:41:11 > 0:41:15We're looking to make a good profit and if there's a good profit in it, we might sell it.
0:41:15 > 0:41:17But for the short term, I think we're going to rent.
0:41:17 > 0:41:21- And who is doing the work?- I'm doing it all myself.- Oh, are you? Right. - Yep.- What's your background?
0:41:21 > 0:41:27- I've got a bit of building background through my dad and my grandad.- Right. - My grandad was a joiner.
0:41:27 > 0:41:29He obviously passed the trade down to my dad.
0:41:29 > 0:41:33- Learned everything I know from him. - Brilliant. Thank you, Dad.
0:41:33 > 0:41:37- That's wonderful. What about the timescale?- I'm hoping...
0:41:37 > 0:41:42Hopefully around eight to ten weeks. Having to fit this in between work and obviously spare time.
0:41:42 > 0:41:45Right. And once this is done, plans for more?
0:41:45 > 0:41:50Yes, definitely. As soon as this one's done, fingers crossed, remortgaging, move on to another one.
0:41:50 > 0:41:55- Good luck with it.- Thank you very much. Great stuff.- Looking forward to seeing how you get on.
0:41:55 > 0:42:00So, Ian quite understandably falling in love with this place and he's got some great ideas for it.
0:42:00 > 0:42:06Still, its location means it's not going to be an easy renovation, by any standards.
0:42:06 > 0:42:10How will he get on? You can find out later in the show.
0:42:12 > 0:42:15It's been several months now since we last saw those properties.
0:42:15 > 0:42:19Has there been an amazing transformation?
0:42:19 > 0:42:21Let's go back and find out.
0:42:21 > 0:42:26We return now to Sheerness in Kent, where earlier I met John
0:42:26 > 0:42:28and Karen who, for 85,000,
0:42:28 > 0:42:31had bought this three-storey building which had been
0:42:31 > 0:42:34used as offices, but it had been granted planning permission
0:42:34 > 0:42:38to be converted back into a family house.
0:42:38 > 0:42:41But John and Karen wanted to turn it into flats,
0:42:41 > 0:42:43which meant new planning permission.
0:42:44 > 0:42:47Guys, I'm worried, what if you don't get planning permission?
0:42:47 > 0:42:51Have you got a plan B or plan C in case this doesn't take shape?
0:42:51 > 0:42:56If we don't get it, it will be a four bedroomed house, again with a separate office.
0:42:56 > 0:42:58That's if we can't get the permission.
0:42:58 > 0:43:02- So, last resort, it will have to be the family house?- Yeah.- Yeah.
0:43:02 > 0:43:05John and Karen had a budget of £40,000
0:43:05 > 0:43:09and a timescale of three months.
0:43:09 > 0:43:13Six months later, we returned, but what were we going to find?
0:43:13 > 0:43:16Flats or a house?
0:43:17 > 0:43:20Just as I'd hoped, it's flats!
0:43:20 > 0:43:22The ground floor
0:43:22 > 0:43:25and the first floor is now one spacious two-bedroomed flat.
0:43:25 > 0:43:29The ground floor living area has a huge living room with
0:43:29 > 0:43:34plenty of light coming through those big lovely windows.
0:43:34 > 0:43:38That leads into the brand-new kitchen.
0:43:43 > 0:43:46And, look, an original fireplace and cornicing.
0:43:46 > 0:43:49I'm so glad they're still here.
0:43:49 > 0:43:54On the ground floor, there's also a bright new bathroom.
0:43:56 > 0:44:00And up the stairs...the bedrooms.
0:44:11 > 0:44:14And they managed to squeeze in a cloakroom,
0:44:14 > 0:44:16in between the two bedrooms.
0:44:16 > 0:44:21I really didn't want them to split this room into two, and they haven't.
0:44:21 > 0:44:23What a great space!
0:44:23 > 0:44:28Because it is a nice large room, you're not going to find such
0:44:28 > 0:44:33large rooms around here, we thought we'd give it a go, see how it goes.
0:44:33 > 0:44:37If people like it like it is, we'll keep it as a large room.
0:44:37 > 0:44:41If they do want a flat with two smaller rooms,
0:44:41 > 0:44:45we can always alter it to their specification.
0:44:45 > 0:44:49Good plan! Onwards and upwards to the second flat.
0:45:01 > 0:45:05The old utility room and toilet have been turned into a bedroom.
0:45:07 > 0:45:11Whilst the storage space next to it has been converted into a bathroom.
0:45:21 > 0:45:24But the transformation doesn't stop there.
0:45:24 > 0:45:29By taking some space from the big living area, they've been able to
0:45:29 > 0:45:34create another internal staircase, leading ever-more upwards to...
0:45:34 > 0:45:36Well, just take a look!
0:45:40 > 0:45:46A loft conversion means that this upper flat is now a two-bed
0:45:46 > 0:45:48property, making it much more appealing.
0:45:48 > 0:45:53The reason we done the loft extension, or loft room,
0:45:53 > 0:45:57was so that we can get two flats, both with two bedrooms.
0:45:57 > 0:46:01I think that was important. We didn't really want a single bedroom flat.
0:46:01 > 0:46:04We feel we can get more money from a two-bedroomed flat.
0:46:04 > 0:46:07It was very expensive to do that, but we feel it's going to be
0:46:07 > 0:46:10worthwhile in the long run, eventually.
0:46:10 > 0:46:13At the other end of the house, in the basement,
0:46:13 > 0:46:16they've freshened up the existing office space
0:46:16 > 0:46:20and made it independent of the rest of the building by removing
0:46:20 > 0:46:23the internal staircase and creating separate access.
0:46:26 > 0:46:28Even the back yard has been cleared up.
0:46:31 > 0:46:36I'm really thrilled that John and Karen have managed to keep some of the original features and
0:46:36 > 0:46:42the nice proportions, while still creating that modern and crisp feel.
0:46:42 > 0:46:47And the attention to detail is not just about what you can see.
0:46:47 > 0:46:52What we've done is to insulate the walls to a very high standard
0:46:52 > 0:46:55because of building control.
0:46:55 > 0:46:59The underfloor soundproofing is a massive achievement,
0:46:59 > 0:47:02to get what we needed, for building control.
0:47:02 > 0:47:06These are all regulations that have been around for the last few years,
0:47:06 > 0:47:10which are very expensive, but you have no choice but to achieve them.
0:47:10 > 0:47:14Building regulations require much high standards for residential
0:47:14 > 0:47:19properties, so if you are converting a commercial premises, you'll have to factor that in.
0:47:19 > 0:47:24And, on top of all that, another sticky area can be services.
0:47:24 > 0:47:28John and Karen found out that being on a main road meant that
0:47:28 > 0:47:32plumbing and electrical connections come at a significant cost.
0:47:32 > 0:47:35Basically, we'd just renovated before.
0:47:35 > 0:47:38We'd never gone into structure sides of changing buildings,
0:47:38 > 0:47:42needing planning permission or anything, changing utilities,
0:47:42 > 0:47:45so it's been a big learning curve for both of us.
0:47:45 > 0:47:48But, hopefully, it will help us out in the next project.
0:47:48 > 0:47:52Well, I'm glad Karen is still so positive, but this has
0:47:52 > 0:47:56increased their timescale from four months to six months.
0:47:56 > 0:47:58Would I be right in thinking that very tight
0:47:58 > 0:48:02budget of £40,000 hasn't quite done it?
0:48:02 > 0:48:06The budget did go out the window. We've gone quite over the budget.
0:48:06 > 0:48:11The total amount we've spent on this project is £67,000,
0:48:11 > 0:48:14but I think we've ended up still with a good property.
0:48:14 > 0:48:18It's still worth it, to spend that sort of money on this.
0:48:18 > 0:48:23So that's an extra £27,000 over their original estimate.
0:48:23 > 0:48:26John and Karen worked on this together,
0:48:26 > 0:48:29with John actually quitting his fulltime job as a plumber to
0:48:29 > 0:48:32concentrate on this project.
0:48:34 > 0:48:40With a total spend of £152,000 here, was it worth it?
0:48:40 > 0:48:43We asked two local estate agents along to have a look.
0:48:43 > 0:48:45I've had a look around the property
0:48:45 > 0:48:47and I think the changes are wonderful,
0:48:47 > 0:48:52they've made the most use of the property, changing it into two flats
0:48:52 > 0:48:56and using the basement as an office is absolutely ideal for the area.
0:48:56 > 0:49:00I think for this property in the local, it's the best use that
0:49:00 > 0:49:05you could have had in the property, mixing commercial and residential.
0:49:05 > 0:49:07Let's talk numbers, then.
0:49:07 > 0:49:11How much could this building, as a whole, potentially sell for?
0:49:11 > 0:49:13I think in the current market,
0:49:13 > 0:49:16this property would achieve around £200,000.
0:49:16 > 0:49:22I would put the resale value for the whole building at around £200,000.
0:49:22 > 0:49:27'That means a potential pre-tax profit of a more than
0:49:27 > 0:49:30'respectable £48,000.
0:49:30 > 0:49:35'But it's the rental potential that John and Karen are interested in.'
0:49:35 > 0:49:39I think that each flat could rent between £650
0:49:39 > 0:49:41and £700 per calendar month.
0:49:41 > 0:49:45The bottom flat would be in the region of £700 per calendar
0:49:45 > 0:49:49month and the top flat would be somewhere in the region
0:49:49 > 0:49:52of £600-650 per calendar month.
0:49:52 > 0:49:56So, with an average rental of £700 each
0:49:56 > 0:50:00and a potential monthly rental of £400 for the basement office,
0:50:00 > 0:50:04that would give a yield of an impressive 14%.
0:50:04 > 0:50:07So we'd be happy to achieve that.
0:50:07 > 0:50:10Very happy with those valuations for the rentals.
0:50:10 > 0:50:14That's exactly what we was trying to achieve. That's great.
0:50:14 > 0:50:17John and Karen have put their hearts and souls into this
0:50:17 > 0:50:22project and those great valuations are their much deserved reward.
0:50:22 > 0:50:26So how have this husband and wife team got on?
0:50:27 > 0:50:29I think we make a good team.
0:50:29 > 0:50:35Sometimes we have disagreements, I'm normally right... But, yeah.
0:50:35 > 0:50:38We work well together!
0:50:38 > 0:50:40As long as I agree!
0:50:46 > 0:50:50From a multistorey property to have a very small cottage now,
0:50:50 > 0:50:53as we head back to North Shields, where earlier,
0:50:53 > 0:50:57I met father of three and local man Ian, who, for a bargain
0:50:57 > 0:51:03price of just £54,000, had bought this quirky one-bedroomed property.
0:51:06 > 0:51:09Ian owns an electrical contracting company, but had
0:51:09 > 0:51:13aspirations of moving permanently into property renovation.
0:51:13 > 0:51:17Tell me, if it's not obvious, why you wanted to buy this little place.
0:51:17 > 0:51:21We seen it quite a few year back, when we were first looking for properties.
0:51:21 > 0:51:24And when it came up for sale, it just seemed meant to be.
0:51:24 > 0:51:27When we came to view it, I knew I wanted to buy it straightaway.
0:51:27 > 0:51:30It's a really unusual location.
0:51:30 > 0:51:34A little collection of these little houses.
0:51:34 > 0:51:35It is, yeah. It's very quirky.
0:51:35 > 0:51:40It was small, but it most definitely wasn't perfectly formed.
0:51:40 > 0:51:45There was potential, but this little house was a big project.
0:51:45 > 0:51:49The kitchen swamped the tiny dark living space.
0:51:49 > 0:51:51And as for the upstairs,
0:51:51 > 0:51:56an unfortunately positioned ceiling tie and really poor layout
0:51:56 > 0:51:59might have had most of us heading for the hills.
0:51:59 > 0:52:01Seven months later, look at it now!
0:52:15 > 0:52:19Ian has transformed this from a dark, cramped space into a modern
0:52:19 > 0:52:22and bright kitchen-diner.
0:52:22 > 0:52:26Moving the galley kitchen to the back of the property and taking
0:52:26 > 0:52:31down stud walls to open it up to the living space is a masterstroke.
0:52:48 > 0:52:51Upstairs, the bedroom has been stripped back, plastered
0:52:51 > 0:52:53and decorated.
0:52:53 > 0:52:56And by creating a false wall directly behind the stairs,
0:52:56 > 0:52:58Ian's been able to create
0:52:58 > 0:53:01an en suite bathroom, complete with shower.
0:53:03 > 0:53:06Also, after checking the plans, he's been able to remove
0:53:06 > 0:53:09the beam tie and make it more
0:53:09 > 0:53:12of a feature than a worrying eyesore.
0:53:12 > 0:53:16I got a few expert opinions on the beam
0:53:16 > 0:53:18and it was completely safe to remove.
0:53:18 > 0:53:22It's got far more support than what it actually needs.
0:53:22 > 0:53:25I wouldn't advise anybody to remove it unless you get advice.
0:53:25 > 0:53:26I'll second that!
0:53:26 > 0:53:32Ian's fondness for this property shines through, though, with the quality of this renovation.
0:53:32 > 0:53:37Now one of my favourite things about this lovingly restored cottage.
0:53:37 > 0:53:40Just look at that original parquet flooring.
0:53:40 > 0:53:45One of the features we found when we first came into the property was the parquet flooring.
0:53:45 > 0:53:48There was a lot of kitchen units, furniture, covering it
0:53:48 > 0:53:52and we didn't really realise what was going to be underneath it.
0:53:52 > 0:53:56When we exposed it, we realised it was a full floor of parquet.
0:53:56 > 0:53:58We tried to restore it as best we could.
0:53:58 > 0:54:01When the lads came in, they've done a fantastic job.
0:54:01 > 0:54:07Obviously, I called a bunch of professionals who were good at restoring nice flooring like this.
0:54:07 > 0:54:08And they've done an amazing job,
0:54:08 > 0:54:12and it's one of the biggest keys to the property, to be honest.
0:54:12 > 0:54:14I have to say, I agree.
0:54:14 > 0:54:17Aside from the flooring, Ian's done all the work here himself,
0:54:17 > 0:54:20which just makes it even more impressive.
0:54:20 > 0:54:23It wasn't all plain sailing, though,
0:54:23 > 0:54:26due to complicated covenant details, details delaying him,
0:54:26 > 0:54:29Ian has actually owned the house for two months,
0:54:29 > 0:54:33and astonishingly, he's done most of this work in four weeks.
0:54:36 > 0:54:39When I set me heart into a job,
0:54:39 > 0:54:43I kind of go full stretch at it till I'm finished.
0:54:43 > 0:54:46But, yeah, I'm pleased with how quick I got it done.
0:54:46 > 0:54:48It came in quite far under budget,
0:54:48 > 0:54:53we've actually spent £6,800 on the whole property.
0:54:53 > 0:54:56In terms of the budget, we've kind of squashed it.
0:54:56 > 0:54:59I was just very careful. We hit the bargains
0:54:59 > 0:55:03and obviously trying to make the most of everything we've got.
0:55:03 > 0:55:08So, half the time frame and over £3,000 under the original budget -
0:55:08 > 0:55:11that's not squashed, Ian, it's smashed!
0:55:17 > 0:55:20We do think there's a nice tidy profit in the property.
0:55:20 > 0:55:22Currently we've had one offer on the property already
0:55:22 > 0:55:24before it was even finished.
0:55:24 > 0:55:30We're obviously playing with that and seeing how that offer stands.
0:55:31 > 0:55:35With a total spending of just under £61,000,
0:55:35 > 0:55:37Ian is right to consider offers.
0:55:37 > 0:55:41But, before he does, we asked two local property experts along to take a look.
0:55:44 > 0:55:48First, the agent who wasn't short of a few ideas for the property herself.
0:55:48 > 0:55:50I think it's absolutely fantastic.
0:55:50 > 0:55:53It's actually more than what I expected.
0:55:53 > 0:55:55It's fantastic. Brilliant.
0:55:55 > 0:55:57This is certainly a property that
0:55:57 > 0:56:00should appeal to a variety of buyers.
0:56:00 > 0:56:03It's certainly something a little different from the norm.
0:56:03 > 0:56:08Offering well balanced living space, with a nice modern kitchen
0:56:08 > 0:56:10and nice modern bathroom.
0:56:10 > 0:56:13I would currently estimate putting this property on the rental market
0:56:13 > 0:56:15for £540 per calendar month.
0:56:15 > 0:56:22I would expect to realise a rental figure of £550 per calendar month.
0:56:22 > 0:56:27Wow. That's more than what I thought. I was expecting about 450.
0:56:27 > 0:56:33So that's quite... That's quite appealing actually. Yeah.
0:56:33 > 0:56:35Ian's interested in selling,
0:56:35 > 0:56:38but that yield of 10% and the fact he's increased the value by
0:56:38 > 0:56:44£150 a month from the original valuation might be tempting.
0:56:44 > 0:56:46But what about the sale value?
0:56:46 > 0:56:50He spent a total of just under £61,000.
0:56:50 > 0:56:55I would put this property on the market at £105,000.
0:56:55 > 0:56:59I would envisage an asking price of £105,000.
0:56:59 > 0:57:03Wow. That's rather nice.
0:57:04 > 0:57:07That was actually a lot more than what I was expecting. Yeah.
0:57:07 > 0:57:10When I initially did the project I was aiming for 90,
0:57:10 > 0:57:14so to come out with 105, that's pretty fantastic actually.
0:57:15 > 0:57:18After working his socks off and transforming this property,
0:57:18 > 0:57:22Ian has been rewarded with a valuation that could potentially
0:57:22 > 0:57:25bring a pre-tax profit of £44,000.
0:57:27 > 0:57:30Time to quit the day job and go full-time then?
0:57:30 > 0:57:32I don't know if we'll get this kind of return.
0:57:32 > 0:57:36I think this is a pretty fantastic return for four weeks' work.
0:57:36 > 0:57:39But if I could, hey-ho, keep them coming.
0:57:42 > 0:57:45Join us next time for more auction ups and downs.
0:57:45 > 0:57:48Yes, it's all here from bungalows to basements to building plots
0:57:48 > 0:57:51- on Homes Under The Hammer. - See you then.- Goodbye.