Episode 6 Homes Under the Hammer

Hello and welcome to the show.

Now, some people put their money into stocks

but over the medium to long term,

property is generally considered to be a strong and solid investment.

There can be great bargains if you buy your home under the hammer.

There's a wide variety of buyers

and a big range of property on offer at an auction.

Yes, but it's a bit of a race to get the best bargains

and you have to be in it to win it,

so what was on offer at the auctions we're featuring on today's show?

In Devon, some positive thinking is required.

The survey said that there's only one wall that's worth keeping.

-Apart from that, it's perfect(!)

-Yes.

Whilst in Sheerness, I'm worried about extra walls.

It would be a shame to damage such a beautiful room

to just try and squeeze another bedroom out of it.

And in North Shields, walls could come tumbling down.

Not the sort of thing you do without a structural report though, is it?

Exactly, yes.

All of these properties have been sold at auction.

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

when they went under the hammer.

Sold.

We now go back in time to 2009, and to Devon,

where on the banks of the River Exe in the village of Lympstone,

we first saw a property that certainly didn't match up

to its surroundings.

# Oh, you crawled

# Out of the sea

# Straight into my arms

# Straight into my arms... #

Well, even on a cloudy day like today and with the tide out, it is

still spectacular so what you'd hope for is a property that can

make the most of these quite extraordinary views.

That's exactly what you've got.

This is what was up for auction, 120,000 quid.

No parking, but hey, the location couldn't be better.

The area to the side and the front are public, and there's no garden to

speak of, but you do have the whole of that estuary as your playground.

As you might have gathered from the outside,

the cottage is, well, a bit of a hodgepodge, to be honest.

This bit here is sort of, I guess, a living area.

Then you go through to what I imagine is the oldest part

of the cottage underneath this fairly low archway

into this sort of anteroom here.

You've got stairs up to two bedrooms there.

You've got another bedroom there and you've got this other bit

splintering off to the front of the property. All very strange.

The property feels like a collection of add-ons to what was once

a beach house, and although the structure seems sound, it might

be advisable to get a full survey just to be on the safe side.

You've got a bathroom there.

It's huge, actually, for the size of the place.

And then through and up the steps to the very rear of the property,

where you've got the kitchen, clearly in need of total renovation.

The key thing is this is where your view is.

This is the most marvellous part of the house

and yet so little of the property is situated here.

To take advantage of the sea views,

it sounds tempting just to start moving walls around, but beware.

The cottage is in a conservation area

so no matter how much the layout here doesn't feel right,

you won't have the final say on how to fix the problem.

Upstairs, and the quirkiness is starting to get a bit annoying.

Two bedrooms here. One at that side there.

You've got this disastrous little corridor.

Very low ceilings here with beams going across.

This is the other bedroom.

It's small. You've got big cupboards in both bedrooms

so maybe play around with that wall and create bigger bedrooms,

and ditch the kind of storage space.

I'm struggling to figure out how you could improve this place

without doing some fairly major internal modifications.

And even if it goes for anything near its guide price of 120,000,

it'll still take a very healthy renovation budget to get this

place looking its best.

This is a pretty special project, a chance to restore a wonderful

old cottage in this lovely village, and add value to boot.

It really is a developer's dream.

Let's see who spotted the opportunity at the auction.

Who's going to say to us, er... Guide, 120. Bang, straight in.

Won't start less, he knows. Thank you. 120, I've got 120, 122, 124.

There's three of you. 126, 128, 130,

132, 132. 134.

136. 138. 140.

With several bidders playing a cat and mouse game,

we leave the auction and return at 171,000.

171, 172...

175? Yes, sir, 175.

At 175... At 175...

At 175, once.

At 175, second time.

Third and last time. Are we sure and done? All out at 175.

Sir.

The man who beat off all the competition was Nick

with his successful bid of 175,000.

He lives in Northampton with his wife and son, aged 18,

and daughter, aged 20.

He works as a property developer of a specific kind,

developing GP surgeries in England and Wales.

# You're just what the doctor ordered... #

I caught up with Nick back at the cottage to find out just what

-attracted him to the property.

-In a word, the view.

-Yes.

The view is knockout, and I actually sort of, erm, saw the details to the

property only four days before the auction

so I didn't have time to actually look around it before the auction.

Did you know Lympstone then?

Yes, I've had a boat on the mooring just literally opposite here

for about three years so I know the village very well.

We actually use the slipway that's directly outside here

to get access to the boat.

We've always said that if this property came on the market,

we should go for it.

So, what did you think the first time you came inside?

I expected it to be fairly poor, but, yeah, it's quite bad in areas.

I've seen a survey since I bought the property

-and the survey said that there's only one wall worth keeping.

-Right.

-Which is...which wall?

-That wall.

-Aha! And the rest of them?

The rest of it should be taken down and rebuilt including the roof

and the windows and the plumbing and the electrics.

-Apart from that, it's perfect(!)

-Yes.

Well, perfection or maybe not,

the prospect of being the owner of one wall with a great view

doesn't seem to have fazed Nick and he's not in a hurry.

Certainly short-term we're going to sort of do the property up so that we

can use it, and if two years becomes four years, then that's life really.

# That's life

# That's what all the people say... #

The plans for a superficial overhaul into a holiday home might be

a stopgap, but with Nick facing a change in his work location

to Bristol, this holiday home might become the family's permanent

home, which means major changes to this property.

I think timescale will be very dependent upon the architect

coming up with a design that we like.

There will be a lot of toing and froing and revision of that,

and then consultation with the planners, with also the parish

council, and the town council to see what they would want to see

in what is a very prominent position within the village.

And then it's a question of putting a planning application in

and then running through that period, which could be three months,

four months, to actually get a decision.

And then we'll need to get the builders and build it out.

I would say that we're probably looking at building...

two summers' time.

That was back in 2009.

18 months later, in November 2010,

we returned to Lympstone to see how things were going.

The cottage had a fresh coat of paint,

but all those walls were still standing.

Inside, there had been a much-needed make over.

The room with the view, the kitchen, had been given a spruce up.

As had the bathroom.

But it was those two tiny upstairs bedrooms where Nick

pulled a blinder.

OK, well in this room,

you might remember there were two rooms divided by a wardrobe,

a funny wardrobe partition thing in the middle

and they were just too small and pokey.

The easy decision was to remove all the wardrobe

and make it into the big room that we've got now.

That room was so much better, as was the one downstairs.

Mick spent £2,000 smartening up the interior, allowing him

and his family to enjoy their new holiday home in comfort.

But the long-term plan was still to sort out

the structure of the cottage.

It would be a decision that the building itself would make for Nick.

Whether we redevelop or not, is going to depend on how long the roof

and the rear wall last out for.

At the moment, from an insulation point of view,

the property is really bad and it's got the lowest energy rating

I've ever seen for a property.

I would hope the planners could be persuaded that it would be better to

use modern materials and I would love to be able to create a,

in many ways, a zero carbon building but a building that was

sustainable, that you didn't have to have heating in at all.

Nick was fairly confident that he would be able to get planning

permission for a new build here and already had a layout in mind.

What I'd like to be able to do is to probably turn the property

upside down and have the bathroom and the bedrooms on the ground floor

and to maximise the view, have a big open-plan space at first floor,

big living room area, big kitchen area, dining area,

so that we do get the benefit of the view throughout the whole house,

not just in the kitchen as it is at the moment.

That was back in November 2010.

Join us later in the show, over three years later, to see

if Nick got his dream home to go with that dream view.

Leaving the seaside of the south-west behind

and heading to the south-east coast,

Sheerness in the Isle of Sheppey in Kent,

is the largest town on the island.

It was originally built as a dockyard and fort back

in 1655 to protect the militarily important shipyards of Chatham.

It has a bustling high street and some lovely period buildings

and speaking of buildings...

Now, the property I'm here to see today

is just around the corner from all the shops of Sheerness

and an equally quick stroll to the waterfront.

It looks like a house, but, in fact, it's been

used as an accountants for a number of years, although it was

sold with planning permission to be turned back into a home.

So, office space or house? Let's get inside and have a look.

Oh, but the guide price is 80 to 100,000.

Straightaway, you can see that this property has been

used for its commercial use.

Your little entrance office area with your glass here,

you've got the wording on the door but it's quite nice to look up

and see that there is still period detail in this house.

You've got these wonderful, wonderful high ceilings

and this really is quite a grand room

if you look beyond the ugly office furniture over here.

Look, you've got these amazing fireplaces, wonderful, big windows.

I'm not quite sure about this little partition that split the room

into two, but it's quite unusual coming into a space like this.

I like the fact that they've added the bits they've needed,

the accountants that were here before.

You look up and you can see,

quite happily sitting next to each other,

strip lighting and a beautiful period feature ceiling rose.

I mean that is gorgeous.

I love the fact that the heart hasn't been ripped out

of this place and it really is still quite beautiful.

# My heart skips, skips, skips, skips, skips a beat... #

I bet there are also hidden features here, beautiful floorboards,

original tiles in the hall, perhaps.

The ground floor is one big space separated by a thin partition...

..with the kitchenette and toilet at the back.

Downstairs on the lower ground floor, there is a large open

plan area, another loo and this floor has its own separate entrance.

Moving up to the first floor, there's a good-sized room

with another period fireplace and at the front,

a gorgeous full-width room which could be turned

into a dream of a bedroom.

Up on the top floor, there's a large bedroom which has been

left as it is and I suspect the loo, utility and storage cupboard

at the back have been made out of what was once a double bedroom.

The fire escape may be practical but it sure ain't pretty.

Neither is this small yard.

The obvious downside is there's no off-street parking

but could this office make a purr-fect period home?

Well, the good news is, there are plans

and planning permission already in place.

The plans that were passed suggested putting a kitchen

and breakfast room down there on the lower ground floor,

not changing any walls at all,

keeping the ground floor layout the same and calling it

a dining room/lounge with a bathroom in place of the kitchenette.

Up here, it's two bedrooms on each floor and two shower rooms,

very minimal structure work needed, but is it the right thing to do?

# Do the right thing, do the right thing, yeah...#

If you wanted to split this house into flats, you'd have to

reapply for planning permission, so let's weigh up the options.

I'm really not sure turning that place back into one house is

the right course of action. Why?

It's on a busy main road, there's no parking, there is no

garden to speak of and even though the conversion would be an easy one,

it would cost you a fair bit of cash.

Once you're done, would you make any money? Probably not.

There's a five-bedroomed house nearby on for 145 grand,

not on a main road.

No, that place screams one thing to me... Flats.

Is it really as easy as that? Of course it's not!

This whole area is actually on a flood plain.

That means it's almost impossible to get planning

permission for bedrooms in basements or on the ground floor,

so what do we do with this perplexing property?

With a guide price of £80-£90,000,

we asked an estate agent her opinion.

I think I would go to make it into two flats with the office

space in the basement,

because that would offer you the best return on your money.

So, an office space in the basement would certainly solve those

planning permissions regarding the flood plain,

but how do the numbers stack up?

Would flats be more profitable than a house?

If it's renovated to a high standard as a four bedroom house, £150,000.

One to two bedroom properties in this area

would achieve around £75,000.

OK, so two flats would be worth the same as the whole

house on the sales markets but with the flats option,

you do have the basement as a separate unit.

The agent reckons a four bedroom house would get £850

per calendar month, so what if you were to rent out

two flats and a commercial space in the basement?

A one bedroom property would be £450 per calendar month.

Two bedroom property, 575 per calendar month.

The basement part as an office would achieve around £100 per week.

Imagine, if you will, then,

one two bed and a one-bedroom property and the commercial space.

You'd be looking at £1425 coming in per calendar month.

That's over 17 grand a year.

With a good plan that works with those flood plain regulations,

your profits could spiral upwards.

I think this is a couple of flats just waiting to happen.

Let's see who bought it and what they thought at the auction.

Where do you want to start me? Start at 75. 75, I'm on the way.

£75,000 and eight, 78, 78, I have and 80.

At £80,000. 85? Yes?

85, I've got and 90, 90, I'm looking for. At 90.

At £85,000 I'm bid, for the first time at 85

if you're not going to bid any further, for the second time

at £85,000, at £85,000, third and final bid, are you all done?

Yours, Sir, for 85,000.

The hammer fell in the middle of the guide price and that £85,000

final bid was made by self-employed plumber, John, and his wife, Karen.

The pair have been renovating and developing properties for a

while now, including a building just three doors down from this one.

They live in London so I met them to find out why they were

so keen for another slice of the Sheerness property market.

-Congratulations.

-Thank you.

Why did you want to buy this house?

Well, we come to the island quite a lot, we've got a caravan up

the road and we was just walking past and we noticed a sign going up.

I think this building itself is going to suit

a basement office and two flats.

A three-bedroom flat, hopefully,

and a two-bedroom flat using a loft conversion at the same time.

Well, that is amazing. So, how are you hoping to do that?

Well, it's the biggest development we've ever got involved with.

We've done small developments.

I've worked out the figures, what I think we need to spend

and the finish that we require

for the completion of this property.

What budget are you looking at to do this conversion?

We looked on about £40,000.

OK, so you've got £40,000 to put down to try and get this converted.

-Yeah.

-What's your time frame?

Depending on when we get the planning permission, four months.

I'm so glad John and Karen have decided to go down the route

of getting new planning permission.

And, as long as those plans are approved,

they want to rent out the two flats and the offices they create.

But I'm intrigued by how they want to carve up the space for the flats.

The top floor and loft will be a two-bed flat

and the first and ground floor will be a three-bed flat.

Three-bed?

Hang on a minute. A little alarm bell has just gone off in my head.

This floor that we're actually standing on,

you're looking at putting three bedrooms here.

Do you think that might be a little bit of a squeeze?

No, not really. I mean, this room is far too big for one bedroom.

No-one would expect to have one bedroom at this size.

I've never seen a bedroom this big before,

it's a lot bigger than we would get in London.

-Maybe it's a fair size for out in Kent.

-That is the point here.

We're not in London.

You get a lot more space for your money

and it would be a shame to damage such a beautiful room as this,

to just try and squeeze another bedroom out of it, but I'm sure

it financially stacks up for you and that is what you're doing this for.

Yeah, the rents will be higher if you add the extra bedroom.

-Absolutely.

-Quite a lot over a year, or over so many years,

it will be quite a few thousand pounds.

The interesting thing about this property, in my eyes,

is that when I first walked in, I absolutely loved the building.

And I love the fact that whoever was here before,

they didn't rip the heart out of it.

But are you going to be ripping the heart out of it or will you

try to develop sympathetically?

We're trying to do it with keeping some character,

maybe we'll leave some of the fireplaces in

as a focal point in the rooms.

If they can work around the ceilings without damaging the ceiling roses

-and the cornices, I'm not quite sure.

-I'm worried.

What if you don't get planning permission?

Have you got a Plan B or Plan C, in case this doesn't take shape?

Obviously, if we don't get it,

then it will be a four bedroom house again, with a separate office.

That's if we can't get the permission.

-So, last resort, it will have to be the family house.

-Yeah.

Guys, congratulations, I really hope you get Plan A passed.

I'll look forward to seeing what you do here. Well done.

-Lovely to meet you.

-Thanks a lot, Lucy.

I do hope some of those original features survive

this ambitious refurbishment.

But I do think John and Karen have the right idea

for thinking profit and rental.

And I do hope they get the permission they want.

You can find out what happens later on in the show.

Coming up, it's a tale of two budgets in North Shields,

result, good.

Obviously, in terms of the budget, we've kind of squashed it.

But in Sheerness, Kent, hmm...

Not so good.

Well, the budget did go out the window.

We've gone quite over the budget.

It's back now to the lovely village of Lympstone

on the estuary of the River Exe in Devon where, earlier in the show,

we met Nick from Northampton, who,

back in 2009 had bought this three-bedroom property for £175,000.

The cottage had seen better days, but what it lacked

in a cosy cottage feel, it made up for in spades with the view.

Nick's short-term plan was to spruce the place up

and have a base for the family to enjoy their boat here.

And, then, planning permission permitting,

to turn it into a dream house.

And it sounded like this old cottage really did have to go.

-The survey said that there's only one wall that's worth keeping.

-Right.

-Which is, which wall?

-That wall.

Ah. And the rest of them?

The rest of it should be taken down and rebuilt,

including the roof and the windows and the plumbing and the electrics.

-Apart from that, it's perfect(!)

-Yeah.

When we returned in 2010, we expected to see a holiday home,

and that's exactly what we got. The whole place had a lovely feel.

A new kitchen and a much improved upstairs made all the difference.

Being in a conservation area,

Nick knew his long-term plan would take a while,

but he did have £200,000 to £250,000 budget to create something fabulous.

What I'd like to be able to do is to probably turn the property

upside down and have the bathroom

and the bedrooms on the ground floor, and then to maximise the view,

have a big open-plan space at first floor, big living room area,

big kitchen area, dining area,

so that we do get the benefit of the view throughout the whole house,

not just in the kitchen, as it is at the moment.

And just over three years later, it's now time to return to Lympstone

to see if Nick's dream home has become a reality.

And, wow! Amazing.

The weather might be a real let down but this fantastic house sure isn't.

The new house now has two floors, with a stunning glazed gable end

and a glass balcony.

But if that looks impressive, wait till you step inside.

Nick has got his upside-down house,

with the original upstairs bedrooms

now providing one half of a huge top floor,

containing a mightily impressive living area

complete with that balcony giving fantastic views,

even on a day like today.

And even before seeing the rest of the house,

it's not hard to see why this is Nick's favourite room.

The beauty of the top floor is it's all open-plan,

and it sort of encompasses three different transition areas.

There's the sort of snug area in the corner

where I've got the fire and the television,

and that's where it's all contained over there,

but I think, for me, the best part of this area is the kitchen.

And the fact it's right in the centre,

we've got an island unit

and I can be working at the island unit and enjoying the view,

which even on a wet day like it is today,

is still there, and it's nice to look at.

But it's also the scenery down below that's impressive.

There are two bedrooms leading off from the spacious hall,

with the site of the old kitchen now home to the new master bedroom,

complete with its own en suite.

While at the rear is the second bedroom.

And that lovely spacious hall contains the family bathroom

and utility room.

Just as Nick planned,

the building now has a high energy-efficient rating,

and the wood, glass and brick construction fits in

sympathetically with the village.

The design of the house almost was partly being modern

and being 21st century.

That was important.

But also, it had to respect the fact that it's in a conservation area,

and actually it's a very important part of the village.

One thing that is definitely this century is energy rating.

The original cottage had the lowest rating at G.

Brrrr!

But this house has a cosy B rating.

We had to communicate with all the neighbours,

and also with the parish council.

So the feedback we had was vital.

Then the architect and I made one or two changes

before actually submitting the planning application.

The planning went through very smoothly,

and I think that initial communication helped a great deal.

The interior decor is neutral,

with Nick preferring to let the natural light and space

do the talking.

And the dark tones of the furnishings

help provide a warm atmosphere.

We've gone for a number of things.

Without being too cliched,

the floor - I wanted to have a solid floor,

and we found a limestone floor called "seashell".

And within it, there are lots of fossils,

which I think is kind of a nice touch.

Nick moved to the village three years ago,

and was able to project-manage the development.

And now that the old dinosaur of a cottage

has been consigned to the past,

a change of circumstances has helped him make a big decision.

I still want it as a holiday home.

It's become a permanent holiday home.

That sounds a bit cliched, but it is actually a fantastic place to live.

After nearly five years of patience, Nick has finally realised

his vision of life near the water in a home befitting of its location.

But did he achieve his dream within his £200,000-£250,000 budget?

I did sort of reach the upper end of the estimate,

because once you factor in all the fees, utility providers,

and council fees, we did end up getting to the £250,000 mark.

Add in the £250,000 spent

to his purchase price of £175,000

means that Nick's dream home has cost him £425,000.

Can two agents fail to be impressed?

We start with the agent who first saw the property

in its original state back in 2009.

I can't believe what the gentleman has done to the property.

You know, he bought a wreck,

and he's turned it into an absolute dream palace.

I'm actually struggling to find the negative point about the property.

I really am. That really is a genuine, honest appraisal.

I think the property's beautiful,

and I actually wouldn't have changed or done anything differently.

The main selling features to the property

are the location and the view.

And it's been finished incredibly well

with the large open-plan living upstairs,

and the main bedroom looking onto the river.

But will the house prove a good investment for Nick?

Remember, he spent £425,000.

What sort of profit could he make

if he ever did decide to sell the house?

It could range anywhere literally from £500,000-£600,000.

An estate agent may even ask for £700,000 on the open market.

The value of the property is approximately £500,000.

You could get a little bit more,

depending on who the buyers are at the time.

Well, if we keep our feet on the ground,

that £500,000 valuation would give Nick a possible £75,000 profit.

But this is a dream property, and if we took that top valuation,

the dream profit would be £275,000.

If somebody knocked on the door now and said, "Here's £1 million,"

will I move out?

Then the answer would be no.

And that same philosophy is applied to rentals,

with even the agents' valuations at £1,200 per calendar month

not swaying Nick an inch from his desire to live here.

Because after five years of waiting and planning,

and the energy invested in this property,

it is one dream that won't be sold on.

I love living here.

It's got everything, from the view out to actually the village.

Great facilities.

The sailing club, cycling,

and to live in it and actually call it home now is great,

and I can see myself living here for many, many years.

Well, Devon doesn't have the monopoly on waterside charm.

How about this idyllic spot

eight miles east of Newcastle upon Tyne?

This is the Fish Quay in North Shields

on the north bank of the River Tyne.

It's an area steeped in maritime history.

But there's also a tenuous link with property,

because the "shields" bit of North Shields

actually derives from a Middle English term

meaning "temporary huts for fishermen".

# Fish, fish, fish, fish, fish

# Fish, fish, fish, fish

# Eating fish... #

The port here dates from around 1225,

when the Priory of Tynemouth,

built on that headland in the mouth of the River Tyne,

needed to provide fish for the Priory.

Over the centuries,

North Shields exported salt from the local salt pans,

coal from the local collieries,

and built and repaired ships in the docks.

What a fascinating place to live.

Who wouldn't want to head down to the auction

to see what was on offer?

Well, the property is located in the grounds of a church,

but apparently, it's not that easy to find.

It's down this path somewhere.

Apparently a mews cottage.

The guide price was £45,000 plus.

Hopefully it will be worth the effort.

It's very cute. I have to say that.

And, in fact, here it is. It's the middle one there.

Let's see if I can fit inside.

# All the small things... #

Good things come in small packages. Let's hope so.

You walk through the front door

and immediately you're hit by this fairly low ceiling,

which does give it a little bit of a kind of snug feel,

or you could read into that claustrophobic,

but a nice size window at the front.

I like the sort of parquet flooring too.

You've basically got one room here,

which is obviously doubling as a lounge/kitchen.

They've been a little bit adventurous

with how they've built the kitchen.

We've got this sort of little breakfast bar area,

and a little bijou kitchenette.

But, you know, I guess it works.

It's not ideal, but hey.

At the back here, you've got a little utility area and your loo.

That's the only loo in the property.

If you're expecting more, you're not going to get it,

because that's it for downstairs.

Let's go upstairs.

Cosy or claustrophobic?

Unique or just plain weird? You decide.

There isn't much light down here,

and whoever buys it will need to be full of imagination and creativity

to get the most out of it.

Oh, and also under 6ft, preferably.

Well, there's a pleasant surprise. Not at all what I was expecting.

Someone has obviously gone up into the attic space at some point

to create this roof light here,

which shed loads and loads of natural daylight into this room,

which is a real pleasure.

You've really just got one major space,

and this small little anterior there.

And, strangely, it feels a lot less claustrophobic than downstairs.

One slight issue you have got up here

is the fact that you've got this metal bar.

You've got the beam here, and then this is a sort of tie bar.

Whatever you do, you do not want to be cutting through this

with your hacksaw, because it's holding the place together.

# Can't touch this

# Can't touch this... #

Another possible problem is that big piece of missing plaster,

which will need some expert attention.

However, it is a lot brighter here,

and someone has made better use of the space.

Well, if there's a downside to the property,

it's that there isn't a lot of outside space - I mean, that's it.

At least you've got no lawns to mow, I suppose.

If you are renting the property out,

then actually not having too much garden is a bonus.

For a family home, you'd probably want a little bit more.

It could, however, suit a single person, a couple,

or maybe even be turned into a holiday let.

After all, we are in pretty North Shields,

so why not take advantage?

Well, one of the great charms of this place obviously

is its secluded nestled away location.

But when it comes to doing renovation works,

that could turn into a bit of a bugbear,

because not only have you got to get waste materials out

and into a skip, and where are you going to park that?

But you've also got to get building materials in,

and down these little sort of pathways

and through narrow archways.

I mean, it is going to be a problem.

The other issue is that the street out here

is residents-only parking,

or permit parking, and where's your builder going to park?

So it's all stuff which is going to add to the cost of any renovation.

Another thing I might be querying

is whether there are any planning issues to think about here.

Is this a conservation area, for instance?

I don't think I would care, to be honest,

because for anything like that guide price at £45,000,

it's a steal.

An agent from the auction house selling it

came along to give me her thoughts.

It's very quirky and very different to some of the houses

that you'll find in North Shields.

in fact, I would probably say

you won't find anything quite like this again.

When I first came into this property,

it was evident straightaway that that kitchen

needed to be taken from the lounge.

You're limited on the space that you've got there

for your limit of accommodation.

I would actually take the kitchen through into the back,

which would be fantastic.

Coming up the stairs,

the only other thing that I thought would be quite good there

was putting a spiral staircase in,

and then on this level where the bedroom is,

is bring the bathroom,

and then you could decorate it,

divide it off with the decorative glass brick blocks

that you get now, and then have your bathroom.

You know, bedroom, en suite - however you want to use it.

Wow! Property agent or interior designer?

Some really interesting ideas for changing the space.

But all these changes would cost a lot of money.

In such a small house, would it be worth it?

If the owner carries out the room layout changes that I've suggested,

they will be able to bring the property to the open market

for £90,000.

If I was to keep the property as it is, and redo the bathroom,

the kitchen, and general decoration,

I would say, generally, bring it to the market,

you're looking around £75,000.

Taking into account renovation costs,

it's as either way, you could make a profit.

And the agent thinks that a remodelled property

could fetch around £400 a calendar month.

Well, small though it may be,

it's hard not to fall in love with the charm

of this particular property,

and these places don't come up very often at all.

So I'm sure it will be a very popular lot at the auction.

Lot number 22 is the property at... Asking for £45,000.

46. 47, I have.

Any advance on 47?

48, thank you, sir.

50,000. Thank you. At 50,000.

51.

51.

52. I have got 53, the lady.

54. 54,500.

54, I'm selling. May I say another 500?

All done at 54,000. All done.

The gentleman by the bar at 54,000.

# Let's get ready to rumble

# Watch us wreck the mic Watch us wreck the mic

# Watch us wreck the mic...psych. #

The successful bidder with 54,000 is local man Ian.

Father of three, he owns an electrical contracting company.

He and his wife Lindsey have renovated several properties.

I caught up with him

back at the house to find out his plans for this one.

Ian, great to meet you.

-Congratulations.

-Thank you very much.

Tell me, if it's not obvious, why you wanted to buy this little place.

We seen it quite a few year back, me and me wife, when we were first looking for properties,

and when it came up for sale, it just seemed meant to be.

When we came to view it, I knew I wanted to buy it straightaway.

It's a really sort of unusual location

-and a little collection of these houses, isn't it?

-It is, yeah.

-It's very quirky.

-Tell me what you're going to do to it.

-We've got some walls to come out.

-OK.

Obviously, the electrics will be checked, gas will be checked.

-And then, moving the kitchen from this end of the house to the back end of the house.

-OK.

-And moving the bathroom from downstairs to upstairs.

-Will the stairs stay where they are?

-Hopefully, the stairs will stay where they are, yes.

-So squeezing the kitchen in at the back.

-Exactly.

There isn't much ventilational light. That's the only downside to the property.

-Is it quite window-less.

-It is, yes. Towards the back end of the property,

-we're going to have plenty of down lighting.

-Right.

-A few more wall lights in this area.

Just as much light as we can get into the place,

without having to board the ceilings cos I think it gives it more height,

-not having the board ceilings.

-Upstairs, what's the plan there?

As you go up the stairs, to the left, there's a small voided space.

-We're going to make that into the bathroom.

-OK.

There's a main support beam running right the way through the centre of the property.

-We're going to get a structural survey done and, fingers crossed, we can get that tie removed.

-Oh.

If we can get that removed, it means we've got enough space to get a shower in there as well.

-Right. Not the sort of thing you do without a structural report.

-Exactly. Yes. Yeah!

Getting that checked will be essential.

# Let's stay together... #

The good news for Ian is that he'd set aside £65,000 to buy this

property and had earmarked £10-15,000 to do the work he wanted.

Having paid just 54,000, it's all looking rosy on the financial side.

So what are his plans, once the work is completed?

We're looking to make a good profit and if there's a good profit in it, we might sell it.

But for the short term, I think we're going to rent.

-And who is doing the work?

-I'm doing it all myself.

-Oh, are you? Right.

-Yep.

-What's your background?

-I've got a bit of building background through my dad and my grandad.

-Right.

-My grandad was a joiner.

He obviously passed the trade down to my dad.

-Learned everything I know from him.

-Brilliant. Thank you, Dad.

-That's wonderful. What about the timescale?

-I'm hoping...

Hopefully around eight to ten weeks. Having to fit this in between work and obviously spare time.

Right. And once this is done, plans for more?

Yes, definitely. As soon as this one's done, fingers crossed, remortgaging, move on to another one.

-Good luck with it.

-Thank you very much. Great stuff.

-Looking forward to seeing how you get on.

So, Ian quite understandably falling in love with this place and he's got some great ideas for it.

Still, its location means it's not going to be an easy renovation, by any standards.

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

It's been several months now since we last saw those properties.

Has there been an amazing transformation?

Let's go back and find out.

We return now to Sheerness in Kent, where earlier I met John

and Karen who, for 85,000,

had bought this three-storey building which had been

used as offices, but it had been granted planning permission

to be converted back into a family house.

But John and Karen wanted to turn it into flats,

which meant new planning permission.

Guys, I'm worried, what if you don't get planning permission?

Have you got a plan B or plan C in case this doesn't take shape?

If we don't get it, it will be a four bedroomed house, again with a separate office.

That's if we can't get the permission.

-So, last resort, it will have to be the family house?

-Yeah.

-Yeah.

John and Karen had a budget of £40,000

and a timescale of three months.

Six months later, we returned, but what were we going to find?

Flats or a house?

Just as I'd hoped, it's flats!

The ground floor

and the first floor is now one spacious two-bedroomed flat.

The ground floor living area has a huge living room with

plenty of light coming through those big lovely windows.

That leads into the brand-new kitchen.

And, look, an original fireplace and cornicing.

I'm so glad they're still here.

On the ground floor, there's also a bright new bathroom.

And up the stairs...the bedrooms.

And they managed to squeeze in a cloakroom,

in between the two bedrooms.

I really didn't want them to split this room into two, and they haven't.

What a great space!

Because it is a nice large room, you're not going to find such

large rooms around here, we thought we'd give it a go, see how it goes.

If people like it like it is, we'll keep it as a large room.

If they do want a flat with two smaller rooms,

we can always alter it to their specification.

Good plan! Onwards and upwards to the second flat.

The old utility room and toilet have been turned into a bedroom.

Whilst the storage space next to it has been converted into a bathroom.

But the transformation doesn't stop there.

By taking some space from the big living area, they've been able to

create another internal staircase, leading ever-more upwards to...

Well, just take a look!

A loft conversion means that this upper flat is now a two-bed

property, making it much more appealing.

The reason we done the loft extension, or loft room,

was so that we can get two flats, both with two bedrooms.

I think that was important. We didn't really want a single bedroom flat.

We feel we can get more money from a two-bedroomed flat.

It was very expensive to do that, but we feel it's going to be

worthwhile in the long run, eventually.

At the other end of the house, in the basement,

they've freshened up the existing office space

and made it independent of the rest of the building by removing

the internal staircase and creating separate access.

Even the back yard has been cleared up.

I'm really thrilled that John and Karen have managed to keep some of the original features and

the nice proportions, while still creating that modern and crisp feel.

And the attention to detail is not just about what you can see.

What we've done is to insulate the walls to a very high standard

because of building control.

The underfloor soundproofing is a massive achievement,

to get what we needed, for building control.

These are all regulations that have been around for the last few years,

which are very expensive, but you have no choice but to achieve them.

Building regulations require much high standards for residential

properties, so if you are converting a commercial premises, you'll have to factor that in.

And, on top of all that, another sticky area can be services.

John and Karen found out that being on a main road meant that

plumbing and electrical connections come at a significant cost.

Basically, we'd just renovated before.

We'd never gone into structure sides of changing buildings,

needing planning permission or anything, changing utilities,

so it's been a big learning curve for both of us.

But, hopefully, it will help us out in the next project.

Well, I'm glad Karen is still so positive, but this has

increased their timescale from four months to six months.

Would I be right in thinking that very tight

budget of £40,000 hasn't quite done it?

The budget did go out the window. We've gone quite over the budget.

The total amount we've spent on this project is £67,000,

but I think we've ended up still with a good property.

It's still worth it, to spend that sort of money on this.

So that's an extra £27,000 over their original estimate.

John and Karen worked on this together,

with John actually quitting his fulltime job as a plumber to

concentrate on this project.

With a total spend of £152,000 here, was it worth it?

We asked two local estate agents along to have a look.

I've had a look around the property

and I think the changes are wonderful,

they've made the most use of the property, changing it into two flats

and using the basement as an office is absolutely ideal for the area.

I think for this property in the local, it's the best use that

you could have had in the property, mixing commercial and residential.

Let's talk numbers, then.

How much could this building, as a whole, potentially sell for?

I think in the current market,

this property would achieve around £200,000.

I would put the resale value for the whole building at around £200,000.

'That means a potential pre-tax profit of a more than

'respectable £48,000.

'But it's the rental potential that John and Karen are interested in.'

I think that each flat could rent between £650

and £700 per calendar month.

The bottom flat would be in the region of £700 per calendar

month and the top flat would be somewhere in the region

of £600-650 per calendar month.

So, with an average rental of £700 each

and a potential monthly rental of £400 for the basement office,

that would give a yield of an impressive 14%.

So we'd be happy to achieve that.

Very happy with those valuations for the rentals.

That's exactly what we was trying to achieve. That's great.

John and Karen have put their hearts and souls into this

project and those great valuations are their much deserved reward.

So how have this husband and wife team got on?

I think we make a good team.

Sometimes we have disagreements, I'm normally right... But, yeah.

We work well together!

As long as I agree!

From a multistorey property to have a very small cottage now,

as we head back to North Shields, where earlier,

I met father of three and local man Ian, who, for a bargain

price of just £54,000, had bought this quirky one-bedroomed property.

Ian owns an electrical contracting company, but had

aspirations of moving permanently into property renovation.

Tell me, if it's not obvious, why you wanted to buy this little place.

We seen it quite a few year back, when we were first looking for properties.

And when it came up for sale, it just seemed meant to be.

When we came to view it, I knew I wanted to buy it straightaway.

It's a really unusual location.

A little collection of these little houses.

It is, yeah. It's very quirky.

It was small, but it most definitely wasn't perfectly formed.

There was potential, but this little house was a big project.

The kitchen swamped the tiny dark living space.

And as for the upstairs,

an unfortunately positioned ceiling tie and really poor layout

might have had most of us heading for the hills.

Seven months later, look at it now!

Ian has transformed this from a dark, cramped space into a modern

and bright kitchen-diner.

Moving the galley kitchen to the back of the property and taking

down stud walls to open it up to the living space is a masterstroke.

Upstairs, the bedroom has been stripped back, plastered

and decorated.

And by creating a false wall directly behind the stairs,

Ian's been able to create

an en suite bathroom, complete with shower.

Also, after checking the plans, he's been able to remove

the beam tie and make it more

of a feature than a worrying eyesore.

I got a few expert opinions on the beam

and it was completely safe to remove.

It's got far more support than what it actually needs.

I wouldn't advise anybody to remove it unless you get advice.

I'll second that!

Ian's fondness for this property shines through, though, with the quality of this renovation.

Now one of my favourite things about this lovingly restored cottage.

Just look at that original parquet flooring.

One of the features we found when we first came into the property was the parquet flooring.

There was a lot of kitchen units, furniture, covering it

and we didn't really realise what was going to be underneath it.

When we exposed it, we realised it was a full floor of parquet.

We tried to restore it as best we could.

When the lads came in, they've done a fantastic job.

Obviously, I called a bunch of professionals who were good at restoring nice flooring like this.

And they've done an amazing job,

and it's one of the biggest keys to the property, to be honest.

I have to say, I agree.

Aside from the flooring, Ian's done all the work here himself,

which just makes it even more impressive.

It wasn't all plain sailing, though,

due to complicated covenant details, details delaying him,

Ian has actually owned the house for two months,

and astonishingly, he's done most of this work in four weeks.

When I set me heart into a job,

I kind of go full stretch at it till I'm finished.

But, yeah, I'm pleased with how quick I got it done.

It came in quite far under budget,

we've actually spent £6,800 on the whole property.

In terms of the budget, we've kind of squashed it.

I was just very careful. We hit the bargains

and obviously trying to make the most of everything we've got.

So, half the time frame and over £3,000 under the original budget -

that's not squashed, Ian, it's smashed!

We do think there's a nice tidy profit in the property.

Currently we've had one offer on the property already

before it was even finished.

We're obviously playing with that and seeing how that offer stands.

With a total spending of just under £61,000,

Ian is right to consider offers.

But, before he does, we asked two local property experts along to take a look.

First, the agent who wasn't short of a few ideas for the property herself.

I think it's absolutely fantastic.

It's actually more than what I expected.

It's fantastic. Brilliant.

This is certainly a property that

should appeal to a variety of buyers.

It's certainly something a little different from the norm.

Offering well balanced living space, with a nice modern kitchen

and nice modern bathroom.

I would currently estimate putting this property on the rental market

for £540 per calendar month.

I would expect to realise a rental figure of £550 per calendar month.

Wow. That's more than what I thought. I was expecting about 450.

So that's quite... That's quite appealing actually. Yeah.

Ian's interested in selling,

but that yield of 10% and the fact he's increased the value by

£150 a month from the original valuation might be tempting.

But what about the sale value?

He spent a total of just under £61,000.

I would put this property on the market at £105,000.

I would envisage an asking price of £105,000.

Wow. That's rather nice.

That was actually a lot more than what I was expecting. Yeah.

When I initially did the project I was aiming for 90,

so to come out with 105, that's pretty fantastic actually.

After working his socks off and transforming this property,

Ian has been rewarded with a valuation that could potentially

bring a pre-tax profit of £44,000.

Time to quit the day job and go full-time then?

I don't know if we'll get this kind of return.

I think this is a pretty fantastic return for four weeks' work.

But if I could, hey-ho, keep them coming.

Join us next time for more auction ups and downs.

Yes, it's all here from bungalows to basements to building plots

-on Homes Under The Hammer.

-See you then.

-Goodbye.