Episode 66

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0:00:02 > 0:00:03Hello and welcome to the programme.

0:00:03 > 0:00:05Spotting a property bargain isn't easy.

0:00:05 > 0:00:08But, sometimes, rooting one out can be half the fun.

0:00:08 > 0:00:12Yes, you need to know your budget and believe you can

0:00:12 > 0:00:16stick to it, do your research and then try and find a bargain.

0:00:16 > 0:00:17But where do you do that?

0:00:17 > 0:00:20Well, why not pop down to your local auction house

0:00:20 > 0:00:23and buy your next home under the hammer?

0:00:48 > 0:00:53Well, property auctions feature all kinds of, well, opportunities

0:00:53 > 0:00:57from bits of land, large family homes, even the odd country pile.

0:00:57 > 0:01:00The most important thing is that you always buy at the right price.

0:01:00 > 0:01:03So let's take a look at the three lots that went

0:01:03 > 0:01:05under the hammer on today's show.

0:01:07 > 0:01:11In Devon, the location is great and the outside looks promising...

0:01:11 > 0:01:14You come inside and you think...

0:01:14 > 0:01:15.."Noooo!"

0:01:16 > 0:01:19And in Stoke-on-Trent, there's also lots to do...

0:01:19 > 0:01:22Whoever takes this house on has got to start from the bottom

0:01:22 > 0:01:25and work their way right up to the top.

0:01:27 > 0:01:30So, I was hoping to have better luck in Derbyshire.

0:01:30 > 0:01:33Well, I'm here to see something that normally

0:01:33 > 0:01:37grabs my attention, a former chapel.

0:01:37 > 0:01:39All these properties have been sold at auction.

0:01:39 > 0:01:42We'll find out who bought them and what they paid for them

0:01:42 > 0:01:44when they went under the hammer.

0:01:44 > 0:01:45You bought it, sir. Well done.

0:01:50 > 0:01:53I'm in Devon, in the pretty village of Feniton.

0:01:56 > 0:02:00It's 12 miles from Exeter and the train...

0:02:00 > 0:02:03..will whisk you to London in around three hours.

0:02:04 > 0:02:08Well, the property I'm here to see is just 10 minutes' walk

0:02:08 > 0:02:10from Feniton Railway Station and, in fact,

0:02:10 > 0:02:15it was built in the 19th century to house railway workers.

0:02:15 > 0:02:19Good news is, lots of off-road parking, bad news is...

0:02:22 > 0:02:24..I can't find it!

0:02:24 > 0:02:26# I'm looking for love

0:02:26 > 0:02:29# To rescue the state of my heart. #

0:02:29 > 0:02:31Here it is.

0:02:31 > 0:02:34So, access a bit of an issue.

0:02:34 > 0:02:38Guide price, though, £125,000 plus.

0:02:38 > 0:02:43That seems pretty reasonable for a two/three-bed semidetached cottage.

0:02:43 > 0:02:44Looking good.

0:02:47 > 0:02:49Hmm...

0:02:49 > 0:02:51Or maybe not.

0:02:51 > 0:02:52This is the kitchen.

0:02:52 > 0:02:58And as you can see, it is fairly shabby.

0:02:58 > 0:03:02And straight away, I'm not particularly getting a good

0:03:02 > 0:03:04feeling about the layout of this place.

0:03:04 > 0:03:07Interesting spot for the boiler.

0:03:07 > 0:03:09Good news is, at least it HAS a boiler,

0:03:09 > 0:03:10so it's got central heating.

0:03:10 > 0:03:12Bad news is, the boiler's situated in the lounge,

0:03:12 > 0:03:15or at least one of the lounges, because come over this way and,

0:03:15 > 0:03:17separated by this very large chimney

0:03:17 > 0:03:20is a second living room area here.

0:03:20 > 0:03:24I mean, it's almost like the cottage started quite small back there

0:03:24 > 0:03:28and then, over years, it's been added on to and added on to.

0:03:28 > 0:03:31Because you come to this rear room...

0:03:31 > 0:03:34Admittedly, you've got nice views out onto the garden, but...

0:03:34 > 0:03:37..these are the stairs to the bedrooms.

0:03:38 > 0:03:39Ah...

0:03:41 > 0:03:44The layout downstairs just isn't working for me.

0:03:45 > 0:03:49How about trying to move the stairs into the middle reception room?

0:03:49 > 0:03:52And make a bit more of the sunny room at the end?

0:03:52 > 0:03:55That would be just peachy.

0:03:55 > 0:03:57# Moving to the country

0:03:57 > 0:04:00# I'm going to eat a lot of peaches

0:04:00 > 0:04:02# I'm moving to the country

0:04:02 > 0:04:04# I'm going to eat me a lot of peaches... #

0:04:08 > 0:04:13So, is the layout upstairs any better?

0:04:13 > 0:04:15Something tells me possibly not.

0:04:15 > 0:04:18Bathroom's in a good place and it looks to be in reasonable

0:04:18 > 0:04:23condition, but then, this narrow corridor... Bedroom there.

0:04:23 > 0:04:27Bit dark, bit dingy, bit claustrophobic.

0:04:27 > 0:04:31Through to, well, it's actually a bedroom, sort of,

0:04:31 > 0:04:33in the fact that it's a through-bedroom.

0:04:33 > 0:04:37I guess that's why the cottage was described as two/three bedrooms.

0:04:37 > 0:04:39There's a bedroom at the end, but you can only access it

0:04:39 > 0:04:44through this room, which makes this room either a study or a work room,

0:04:44 > 0:04:46not, ideally, a bedroom.

0:04:46 > 0:04:50And, again, it's just on the outside, you think,

0:04:50 > 0:04:53"Yeah, great." And you come inside and you think,

0:04:53 > 0:04:55"Noooo..." Ugh!

0:04:59 > 0:05:04And on top of that dated decor, there seems to be our old foe,

0:05:04 > 0:05:07dampness, suggesting the roof might need some work.

0:05:07 > 0:05:11So that's a must-do even before you start shifting stairs

0:05:11 > 0:05:12and knocking down walls.

0:05:14 > 0:05:18So, a bit of a disastrous layout all round, upstairs and down.

0:05:18 > 0:05:21It's almost like it's been designed along the principle

0:05:21 > 0:05:23of a railway carriage,

0:05:23 > 0:05:26very long and thin with rooms that lead on from one to another.

0:05:26 > 0:05:30So, are there any solutions presenting themselves?

0:05:30 > 0:05:34Well, at the rear of the property, you've got this good-size garden.

0:05:34 > 0:05:36But that's not what interests me.

0:05:36 > 0:05:40It's at the side of the house where I think the solutions could be,

0:05:40 > 0:05:44because, lots of space here to build an extension.

0:05:44 > 0:05:46And not just a single-storey extension, I think

0:05:46 > 0:05:48a double-storey extension.

0:05:48 > 0:05:51Either on that bit at the front, or, why not the whole thing?

0:05:51 > 0:05:55The plot is big enough and so that is the solution.

0:05:55 > 0:05:58All you got to do is talk to the planners. Oh, yes...

0:05:58 > 0:06:00And get on good terms with the neighbours.

0:06:02 > 0:06:05We asked along an expert from the auction house that sold

0:06:05 > 0:06:08the former railway cottage to get her thoughts.

0:06:08 > 0:06:13The accommodation, I feel, could be a little bit reorganised.

0:06:13 > 0:06:16But it's got nice accommodation.

0:06:16 > 0:06:18You've got the three reception rooms downstairs

0:06:18 > 0:06:19and the facility to make it

0:06:19 > 0:06:21into a three-bedroom property.

0:06:21 > 0:06:25So there's a lot of potential and I think, with a little bit

0:06:25 > 0:06:29of tweaking and a little bit of work, it could be super.

0:06:29 > 0:06:31Really nice property.

0:06:31 > 0:06:36And bearing in mind the £125,000 plus guide price, once done up,

0:06:36 > 0:06:39what does she think the property might fetch on the resale market?

0:06:41 > 0:06:44I think if you just carry out the replacing of the kitchens

0:06:44 > 0:06:47and bathrooms and tidying up the accommodation that's here,

0:06:47 > 0:06:52maybe you'd be looking at around about £175,000.

0:06:52 > 0:06:56If, however, they extended and did a lot more work, I think

0:06:56 > 0:06:58you could be looking at over 200.

0:06:58 > 0:07:01It's quite an individual cottage, really.

0:07:01 > 0:07:03And on the rental market?

0:07:03 > 0:07:06I think, for a property of this sort of size, you'd be

0:07:06 > 0:07:08looking at around about

0:07:08 > 0:07:11£700-£750 per calendar month.

0:07:14 > 0:07:16Well, it does need a lot of work,

0:07:16 > 0:07:21but this little railway workers' cottage has a lot going for it.

0:07:21 > 0:07:25So I'm sure it was full steam ahead when it went under the hammer.

0:07:28 > 0:07:31Lot 131. Lovely little property, this.

0:07:31 > 0:07:35It's guiding here at £125,000.

0:07:35 > 0:07:39Anybody want to start at 125,000?

0:07:39 > 0:07:42On the nose of the guide. 125, thank you, sir. Now, seated here.

0:07:42 > 0:07:45Close in at 125.

0:07:45 > 0:07:49125 seated. 130 somewhere else.

0:07:49 > 0:07:51130. 135, can I say?

0:07:51 > 0:07:53Standing. 135, nod of the head.

0:07:53 > 0:07:55137,500 now.

0:07:55 > 0:07:57Any advance on 135,000, then?

0:07:58 > 0:08:00If you're out, he's in.

0:08:00 > 0:08:02Sure we're all done at that level?

0:08:02 > 0:08:05£135,000 standing and calling for the first...

0:08:07 > 0:08:08..second...

0:08:09 > 0:08:13..third and last time. It's with sir, here, at £135,000.

0:08:15 > 0:08:18£135,000, sold to you, sir. Thank you.

0:08:19 > 0:08:23And that successful bid of £135,000

0:08:23 > 0:08:24was made by local builder Barry.

0:08:26 > 0:08:30I met Barry back at the cottage to find out his plans.

0:08:31 > 0:08:35- Barry, good to meet you.- And you. - Congratulations.- Thank you.

0:08:35 > 0:08:38- Well, it's a pretty little spot, isn't it?- It is nice.

0:08:38 > 0:08:40Tell me why you wanted to buy the place.

0:08:40 > 0:08:44I've bought it to rent or - obviously - to sell.

0:08:44 > 0:08:47One of the two, depending on how the figures stack up.

0:08:47 > 0:08:51But, at the moment, I would edge along that we're going to rent.

0:08:51 > 0:08:54- Right, OK. Is this something you do? - Now and again.

0:08:54 > 0:08:57In between our other work. We're in the building trade.

0:08:57 > 0:09:00So, when we get some spare time, we drop back

0:09:00 > 0:09:02and do up some properties, if we can.

0:09:02 > 0:09:04- You've got your own building company?- Yes, I have.

0:09:04 > 0:09:08- What, general building?- General building, small business, local.

0:09:08 > 0:09:10- For about 20 years.- Right.

0:09:10 > 0:09:13And how often do you embark on your own projects?

0:09:13 > 0:09:15- I would say probably a couple a year.- OK.

0:09:15 > 0:09:17- Generally do up and sell on?- Yes.

0:09:17 > 0:09:20So, who's going to be doing the work?

0:09:20 > 0:09:22There'll be a few of us. I have a bit of a team.

0:09:24 > 0:09:26Plumber, electrician, carpenter...

0:09:26 > 0:09:31Will they be able to sort of dedicate time to doing this?

0:09:31 > 0:09:34We don't generally mix too much work.

0:09:34 > 0:09:38We'll put our customers first and then, when we get spare time,

0:09:38 > 0:09:39we'll be on this one.

0:09:40 > 0:09:44I like the fact that Barry is going to fit this around work for his

0:09:44 > 0:09:48existing clients, rather than going all out for a quick turnaround.

0:09:48 > 0:09:50In fact, Barry's not going to hold back

0:09:50 > 0:09:54and has already identified the need for an extension.

0:09:55 > 0:09:58There's a lot of garden, there's a lot of space.

0:09:58 > 0:10:00- I think we can do quite a bit with that.- What do you think about

0:10:00 > 0:10:03the inside? Because it's sort of disappointing, at the moment.

0:10:03 > 0:10:08- It is, very dysfunctional.- That's a good word, actually. Dysfunctional.

0:10:08 > 0:10:12The stairs are in completely the wrong place, which hopefully

0:10:12 > 0:10:14we'll move into the new extension, which will open it up.

0:10:14 > 0:10:18- Oh, wow.- And then we can rearrange the bedrooms upstairs, obviously,

0:10:18 > 0:10:21and not go through other bedrooms to get to them.

0:10:21 > 0:10:23I'm introducing hallways.

0:10:23 > 0:10:26I think quite a bit of scope.

0:10:26 > 0:10:29So, let's talk about the extension, then. What's the plan for that?

0:10:29 > 0:10:31Where will that be, how big, and where will it go?

0:10:31 > 0:10:34The extension will go on the side of the property as you approach it.

0:10:34 > 0:10:36So it will give it some frontage. A nice front door,

0:10:36 > 0:10:38- straight in front of you.- OK.

0:10:38 > 0:10:41It will make the...the garden will become, then, private.

0:10:42 > 0:10:46And inside the extension there will be a shower room, toilet,

0:10:46 > 0:10:50then main stairs and off of these stairs, you will go off into the

0:10:50 > 0:10:53existing property and there will be a fourth bedroom on the first floor.

0:10:53 > 0:10:56Looking at the property from the front, on the right-hand side,

0:10:56 > 0:11:00- how wide?- Three metres.- Three metres. And how high?- Two-storey.

0:11:00 > 0:11:02Two-storey, OK. So, planning permission will

0:11:02 > 0:11:04- be required and all that. - Yes, it will be.

0:11:04 > 0:11:07Barry is allowing three months to get the planning permission

0:11:07 > 0:11:12okayed and he's hoping to have the work finished within six months.

0:11:12 > 0:11:14Let's have a look at the cost, then.

0:11:14 > 0:11:16Let's just focus on the extension, first of all.

0:11:16 > 0:11:20- How much do you think the extension is going to cost?- About £17-£18,000.

0:11:20 > 0:11:24- And that's your price, because you're doing it as a builder?- Yes.

0:11:24 > 0:11:29- Somebody else, it would cost, what, double that or something?- 23-24.

0:11:29 > 0:11:32So, what's the budget for the rest of the works - not the extension?

0:11:32 > 0:11:36I think we're probably looking at somewhere around 22, 23.

0:11:36 > 0:11:39- OK, so 40 in total.- Around the 40 mark in total.- Have you had any

0:11:39 > 0:11:42preliminary indication from the planners whether or not they will be

0:11:42 > 0:11:44agreeable to what you're planning?

0:11:44 > 0:11:49- I haven't, no.- Neighbours?- I have mentioned it to the neighbours.

0:11:49 > 0:11:51- And they're OK?- Yeah, I've shown them a few plans

0:11:51 > 0:11:54and I'll show them some more elevation plans.

0:11:54 > 0:11:57- But hopefully there won't be a problem.- What about the garden?

0:11:57 > 0:12:00Because that is quite a pleasant little spot, isn't it?

0:12:00 > 0:12:05I think just a little bit of tidying up, I think. Bit of a patio.

0:12:05 > 0:12:08A few borders. But I think, you know, it's not going to take much.

0:12:08 > 0:12:11- No. Well, listen, congratulations. - Thank you very much.

0:12:11 > 0:12:14- Good luck with it.- Thank you. - Nice to meet you.- Cheers.

0:12:16 > 0:12:21So, builder Barry not going for the quick profit and selling on,

0:12:21 > 0:12:25but sticking with the long-term plan of renting this place out.

0:12:25 > 0:12:30And what a transformation it could be when we return.

0:12:30 > 0:12:32Still a few issues, such as planning permission,

0:12:32 > 0:12:33to get through before then.

0:12:33 > 0:12:37How will he get on? You can find out later in the show.

0:12:40 > 0:12:43So, that Devon house might need a little reshaping.

0:12:43 > 0:12:47Is the next property going to get me all fired up?

0:12:47 > 0:12:51This is Cobridge, an area of Stoke-on-Trent in Staffordshire.

0:12:51 > 0:12:55Now, this area is considered the home of the pottery industry

0:12:55 > 0:12:58in England, so I think it's safe to say it's time for me

0:12:58 > 0:13:01to potter on and find today's auction lot.

0:13:03 > 0:13:06And the property I'm here to see is a mid-terraced house,

0:13:06 > 0:13:08just a stone's throw away.

0:13:08 > 0:13:13It's got two bedrooms, it had a guide price of £25,000.

0:13:13 > 0:13:16I usually know what to expect from a property like this,

0:13:16 > 0:13:19because I have seen so many of these before.

0:13:19 > 0:13:23From the outside, well, it looks like a standard terrace.

0:13:23 > 0:13:26Will it all be as seems, though, inside?

0:13:30 > 0:13:36OK, well, some major reorganisation needs to be happening in this house.

0:13:36 > 0:13:39It's as I'd expect. But, you know, look at this.

0:13:39 > 0:13:42It could do with some modernising. There's beds here,

0:13:42 > 0:13:46there's a fridge there... It's all a bit skew-whiff.

0:13:46 > 0:13:48So you've got a sitting room, basically.

0:13:48 > 0:13:52You walk through the back of the property to a second sitting room.

0:13:52 > 0:13:55Now, you've just got to look at the carpet. Go down and look at this.

0:13:55 > 0:13:58Carpets are truly worn. They need to be ripped up

0:13:58 > 0:14:00and a brand-new carpet needs to be put down.

0:14:00 > 0:14:04And right at the back of the property is the kitchen.

0:14:04 > 0:14:07Again, that needs to be taken out and something modern

0:14:07 > 0:14:09and fresh installed.

0:14:09 > 0:14:12That's not the end of the sad news, because right at the end there

0:14:12 > 0:14:16is a bathroom, which is in a similar state, and a loo.

0:14:16 > 0:14:19So I think whoever takes this house on has got to start

0:14:19 > 0:14:22from the bottom and work their way right up to the top.

0:14:24 > 0:14:27Well, I suppose if you ever wondered what a two-bed house with

0:14:27 > 0:14:31a £25,000 guide price looks like, well, this is it.

0:14:31 > 0:14:33And it's not just the general state.

0:14:33 > 0:14:36The smell in here is something to behold as well.

0:14:36 > 0:14:39I think getting a big skip is first on the to-do list,

0:14:39 > 0:14:41and then just rip it all out.

0:14:41 > 0:14:46Bathrooms, kitchens, carpets, ceiling tiles, wallpaper,

0:14:46 > 0:14:49wood cladding, furniture, the lot.

0:14:49 > 0:14:50Be gone with you.

0:14:50 > 0:14:54And then you might need to order another skip for upstairs,

0:14:54 > 0:14:56because this isn't much better.

0:14:56 > 0:14:58Once you've cleared it all, I think

0:14:58 > 0:15:02maybe, underneath, there might be a reasonable property.

0:15:02 > 0:15:05It just needs some love and attention.

0:15:05 > 0:15:06# Gimme some loving

0:15:06 > 0:15:08# Do-do-do-do, gimme some loving

0:15:08 > 0:15:09# Gimme some loving

0:15:09 > 0:15:11# Gimme, gimme some loving

0:15:11 > 0:15:13# Gimme some loving

0:15:13 > 0:15:15# Every day. #

0:15:16 > 0:15:20Outside, it just gets better. I joke.

0:15:20 > 0:15:22Somewhere beneath all these overgrown leaves

0:15:22 > 0:15:26and bristly bushes lies a back yard.

0:15:26 > 0:15:29It's more like a jungle and I'm certainly not going to venture

0:15:29 > 0:15:32too far out without my secateurs. Ow, they're quite prickly.

0:15:32 > 0:15:35It's great you've got some outside space, but do not underestimate

0:15:35 > 0:15:38the effort it takes to clear all this up and tidy away.

0:15:38 > 0:15:41Mind you, you might never know what you can find

0:15:41 > 0:15:43underneath in the process.

0:15:43 > 0:15:46# My head is a jungle, jungle

0:15:46 > 0:15:50# My head is a jungle, jungle... #

0:15:50 > 0:15:54I'm thinking you might need the local skip supplier on speed dial.

0:15:54 > 0:15:58The backyard has certainly got a little wild,

0:15:58 > 0:16:01but it's extra space and it leads out to an alleyway.

0:16:01 > 0:16:04And I think it's always handy to come in through the back door,

0:16:04 > 0:16:07especially on a wet day, or if you have a bike.

0:16:07 > 0:16:10But I'm less keen on what's out the front.

0:16:10 > 0:16:12Just take a look across the road...

0:16:13 > 0:16:16Doesn't have the best view, does it?

0:16:16 > 0:16:18No. It's a factory over there.

0:16:18 > 0:16:21Now, before buying this place, I would want to find out what

0:16:21 > 0:16:24businesses could be inside that building

0:16:24 > 0:16:26and are they going to be noisy?

0:16:26 > 0:16:29Well, I've done my research and I found out that yes, it's a

0:16:29 > 0:16:31manufacturing company for windows

0:16:31 > 0:16:35and it includes lots of drilling, which you can hear, banging

0:16:35 > 0:16:38and potentially vans coming and going all day long.

0:16:38 > 0:16:40I don't think it will put everyone off,

0:16:40 > 0:16:42but it certainly will deter some.

0:16:44 > 0:16:46Mm. This is a tricky one.

0:16:46 > 0:16:48You could be thinking to yourself there's more negatives here than

0:16:48 > 0:16:51positives, and you might be right.

0:16:51 > 0:16:55But there are positives in that it appears structurally sound,

0:16:55 > 0:17:00but most importantly, it's that guide price of £25,000, which could

0:17:00 > 0:17:04mean there's room to build a decent return on the outlay.

0:17:09 > 0:17:12What does the local property expert from the auction house

0:17:12 > 0:17:14that sold it think?

0:17:14 > 0:17:17There is obviously a factory just across the road,

0:17:17 > 0:17:20which would be a concern to some buyers.

0:17:20 > 0:17:22However, from an investor point of view

0:17:22 > 0:17:25and a landlord point of view, providing the price

0:17:25 > 0:17:29and the numbers stack up, I don't think it would be a huge concern.

0:17:29 > 0:17:32OK, the location near to a factory might not be a concern,

0:17:32 > 0:17:36but surely the state of the house is?

0:17:36 > 0:17:39I think this property really would appeal to somebody who's done

0:17:39 > 0:17:40a project before.

0:17:40 > 0:17:43It's not just a case of decorating

0:17:43 > 0:17:46and perhaps a new kitchen and bathroom.

0:17:46 > 0:17:48It does require heating, it requires windows

0:17:48 > 0:17:50and it really requires a full hit

0:17:50 > 0:17:55from somebody who could do it in a cost-effective way.

0:17:55 > 0:17:58Ah, but how cost-effective would they need to be?

0:17:58 > 0:18:00What kind of margins are we talking about?

0:18:02 > 0:18:05To resell the property after modernisation,

0:18:05 > 0:18:09I would anticipate in the region of £55-£60,000.

0:18:09 > 0:18:12Alternatively, the rental income would be in the region of

0:18:12 > 0:18:16£375-£400 per calendar month.

0:18:16 > 0:18:18So, some money to be made on resale.

0:18:18 > 0:18:22But, with potential rental yields in the region of 10%,

0:18:22 > 0:18:26it's on the letting market that it could really make its mark.

0:18:29 > 0:18:32Yes, this terrace certainly needs to be thought through.

0:18:32 > 0:18:36It needs a lot of work. But that says "potential" to me.

0:18:36 > 0:18:41You can only make this place better and in this popular rental spot,

0:18:41 > 0:18:44well, I think it could be a worthwhile investment for someone.

0:18:44 > 0:18:46Let's see who agreed when it went to auction.

0:18:51 > 0:18:55Lot 30. We now go to Cobridge in Stoke-on-Trent.

0:18:55 > 0:18:59It's a mid-terrace house, sitting room, living room, kitchen

0:18:59 > 0:19:03and bathroom, with two bedrooms as well. We're guiding it at 25.

0:19:03 > 0:19:0420, can I say?

0:19:06 > 0:19:1020 on the phone. At £20,000. Going once. I've got 20,000.

0:19:10 > 0:19:1321, can I say now? 21.

0:19:13 > 0:19:1522.

0:19:15 > 0:19:1723. 24.

0:19:18 > 0:19:2225. 25 in the corner. 25.

0:19:22 > 0:19:2326.

0:19:23 > 0:19:25A half. 25 and a half.

0:19:25 > 0:19:2626, sir?

0:19:26 > 0:19:2826.

0:19:28 > 0:19:2926 and a half.

0:19:29 > 0:19:3127, 27...

0:19:32 > 0:19:33..and a half.

0:19:33 > 0:19:3527 and a half. 28. 28.

0:19:36 > 0:19:3828 and a half.

0:19:38 > 0:19:4029. New bid at 29.

0:19:40 > 0:19:4129 and a half.

0:19:43 > 0:19:4429 and a half...

0:19:44 > 0:19:4630.

0:19:46 > 0:19:4730...

0:19:48 > 0:19:50..and a half.

0:19:50 > 0:19:53No? At £30,000, then. Another 500 anywhere else?

0:19:53 > 0:19:55Against you on the phone.

0:19:55 > 0:20:00At £30,000, then, once. £30,000 twice, third and final time...

0:20:00 > 0:20:04At £30,000, you bought it, well done.

0:20:07 > 0:20:11And so, for £30,000, the two-bed terraced house in Cobridge,

0:20:11 > 0:20:16Stoke-on-Trent, was bought by Atur.

0:20:16 > 0:20:19This was to be a joint property development project,

0:20:19 > 0:20:23with brother Altur. And this was to be their first renovation project.

0:20:23 > 0:20:26I hope they like challenges.

0:20:26 > 0:20:29- Congratulations.- Yeah, thank you.

0:20:29 > 0:20:32So, who was it who wanted to buy this house?

0:20:32 > 0:20:35We always looked at these sort of houses, but we've never had

0:20:35 > 0:20:37an opportunity, with the budget and everything. And we saw this one

0:20:37 > 0:20:39at the auction, so we thought, well,

0:20:39 > 0:20:42- let's have a go.- Did you view this property prior to the auction?

0:20:42 > 0:20:47We did, yeah. We looked at it and... The smell wasn't...

0:20:47 > 0:20:51- It wasn't in a good state, no. - So, now you've actually got the

0:20:51 > 0:20:54property, tell me, what do you think of it now you've seen it?

0:20:54 > 0:20:58- It's worse now.- It's worse now?

0:20:58 > 0:21:04Because at the time, when we viewed it through the auction, we couldn't

0:21:04 > 0:21:07get inside into it properly, because of the smell and everything.

0:21:07 > 0:21:11Now that we've got the keys and looked at the condition... Oh, dear.

0:21:11 > 0:21:15- Some work needs to be done in here. - Ha! You're telling me.

0:21:15 > 0:21:19And oh, dear, it's worse than they remember. That's a worry.

0:21:19 > 0:21:23I hope they haven't bitten off more than they can chew.

0:21:23 > 0:21:24Why are you doing this?

0:21:24 > 0:21:27Are you going to let this out, or are you selling on for profit?

0:21:27 > 0:21:29We're going to have a look at both options,

0:21:29 > 0:21:31see which one works out the best.

0:21:31 > 0:21:34So, our main option would be just sell it out again.

0:21:34 > 0:21:37Failing that, we'll be looking at letting it out.

0:21:37 > 0:21:39So, what you think you can do to set this place apart?

0:21:39 > 0:21:43We're going to be stripping the whole rooms out.

0:21:43 > 0:21:44Everything from here.

0:21:44 > 0:21:48We'll be looking to put in brand-new radiators, the boilers,

0:21:48 > 0:21:52new bathrooms, completely new kitchens,

0:21:53 > 0:21:54painting and decorating.

0:21:54 > 0:21:57I think it will brighten up the place a little bit more.

0:21:57 > 0:21:59So, what budget have you got to spend?

0:21:59 > 0:22:03We're looking at about 12,000 max.

0:22:03 > 0:22:05And that is to do the whole house?

0:22:05 > 0:22:09Windows, doors, kitchen, bathroom, carpets, ceilings,

0:22:09 > 0:22:11polystyrene tiles come down...

0:22:11 > 0:22:13I mean, the list is endless here.

0:22:13 > 0:22:16Yes, most of the physical work, ie the stripping the wallpaper,

0:22:16 > 0:22:20that will be done by ourselves. We'll save money on there.

0:22:20 > 0:22:21And then the builder themselves,

0:22:21 > 0:22:24they'll be doing the electricals and the skimming.

0:22:24 > 0:22:27- So, I think we'll save some money here.- Yeah.

0:22:27 > 0:22:31- So, tell me, what is your timescale for the work?- At least three months.

0:22:31 > 0:22:34Yeah, at least three months.

0:22:34 > 0:22:36Altur and Atur both have full-time jobs,

0:22:36 > 0:22:39so they will work on the house in the evenings and weekends.

0:22:39 > 0:22:42And they may get some extra family help along the way.

0:22:44 > 0:22:47- So, I noticed you've got your kids with you today.- Yeah.

0:22:47 > 0:22:49They always want to have a look at the house

0:22:49 > 0:22:52and they are so excited about this.

0:22:52 > 0:22:55It will be good to give them something to play around,

0:22:55 > 0:22:59painting perhaps, or stripping the wallpapers off, so... I'll be keeping them going.

0:22:59 > 0:23:02You are going to get the little ones involved in this project?

0:23:02 > 0:23:04- Why not?- Are they excited about what Daddy's up to?

0:23:04 > 0:23:07Absolutely. They are talking about it all day, so yeah.

0:23:07 > 0:23:10- So, you're not daunted, Altur, by the work?- Absolutely not.

0:23:10 > 0:23:13- I'm looking forward to this, actually.- Really?- I am.

0:23:13 > 0:23:14So are you happy you've got it at auction?

0:23:14 > 0:23:17Now that we've got the keys, we just need to get on with it.

0:23:17 > 0:23:20- Guys, good luck with this. Lovely to meet you today.- Thank you.

0:23:20 > 0:23:23Congratulations. And well done. Thank you.

0:23:24 > 0:23:28So this property marks the start of what will hopefully become

0:23:28 > 0:23:30a new career for them both.

0:23:30 > 0:23:32I'm pleased to hear they love a challenge,

0:23:32 > 0:23:35because I'm sure this will be just that.

0:23:35 > 0:23:39I just hope they end up getting a healthy profit.

0:23:39 > 0:23:43Otherwise, we might end up seeing the "To Let" board outside.

0:23:43 > 0:23:46Join me later on in the programme and you can find out how

0:23:46 > 0:23:47they both get on.

0:23:49 > 0:23:54Coming up - in Derbyshire, there is a building with surrounding land.

0:23:54 > 0:23:57So, I reckon that could be a very interesting opportunity.

0:23:59 > 0:24:02We return to Stoke-on-Trent to see how the brothers

0:24:02 > 0:24:06got on with their first development project.

0:24:06 > 0:24:08It was absolutely a massive challenge for us.

0:24:12 > 0:24:17But first, we return to Devon and the pretty village of Feniton.

0:24:17 > 0:24:20It was here that we tracked down a former railway workers'

0:24:20 > 0:24:22cottage that had, over the years,

0:24:22 > 0:24:27been somewhat derailed by a series of add-ons, which gave it a

0:24:27 > 0:24:32layout that was a muddle of rooms branching off in all directions.

0:24:33 > 0:24:36But, with space at both rear and side,

0:24:36 > 0:24:40this two/three-bedroom semidetached cottage did have the chance

0:24:40 > 0:24:44to be turned around and made into a decent family home.

0:24:44 > 0:24:46And the man hoping to get this house back in line

0:24:46 > 0:24:50was local builder Barry, who bought it at auction

0:24:50 > 0:24:53for £135,000.

0:24:53 > 0:24:56What do you think about the inside? Because it's

0:24:56 > 0:24:57sort of disappointing, at the moment.

0:24:57 > 0:25:02- It is, very dysfunctional.- That's a good word, actually. Dysfunctional.

0:25:02 > 0:25:05The stairs are in completely the wrong place,

0:25:05 > 0:25:08which hopefully we'll move into the new extension, which will open it up.

0:25:08 > 0:25:11Oh, wow. Well, what's the plan for that? Where will that be,

0:25:11 > 0:25:13how big and where will it go?

0:25:13 > 0:25:15The extension will go on the side of the property as you approach it.

0:25:15 > 0:25:19- How wide?- Three metres.- Three metres. And how high?- Two-storey.

0:25:19 > 0:25:21Two-storey, OK.

0:25:21 > 0:25:24- So planning permission will be required?- Yes, it will be.

0:25:24 > 0:25:27Barry runs a building firm and does normally one or two development

0:25:27 > 0:25:31projects a year, which he fits around the company's other jobs.

0:25:31 > 0:25:34And, provided planning was granted for the extension,

0:25:34 > 0:25:37he hoped that with a budget of £40,000,

0:25:37 > 0:25:41he could completely refurbish and revitalise the house

0:25:41 > 0:25:45in around six months, depending on other work commitments, of course.

0:25:45 > 0:25:47Well, his building firm must have been busy,

0:25:47 > 0:25:49as we're now returning 13 months later.

0:25:51 > 0:25:54And I'm really hoping things have altered.

0:25:54 > 0:25:57# I want to see a big change in you, baby

0:25:57 > 0:25:59# A big change in you, baby

0:25:59 > 0:26:02# A big change in you, baby

0:26:02 > 0:26:05# A big change in you, baby. #

0:26:05 > 0:26:10Wow! A shiny new side extension is now in place, creating a new,

0:26:10 > 0:26:13centrally-positioned front door.

0:26:13 > 0:26:14It certainly looks very smart,

0:26:14 > 0:26:18but what effect has that had on the inside layout?

0:26:18 > 0:26:22# Big change in you, baby

0:26:22 > 0:26:24# A big change in you, baby

0:26:24 > 0:26:26# A big change in you, baby

0:26:26 > 0:26:30# A big change in you, baby...#

0:26:30 > 0:26:33The stairs are now in the middle,

0:26:33 > 0:26:34with rooms flowing from the hallway.

0:26:34 > 0:26:37So, the old kitchen is now a utility area and the rear reception room

0:26:37 > 0:26:39is now the kitchen.

0:26:39 > 0:26:43Oh, that's so much better. Much more functional.

0:26:50 > 0:26:53We looked at the property and realised it needed an extension.

0:26:53 > 0:26:56I think we could have gone and not done it

0:26:56 > 0:26:58and then kicked ourselves after.

0:26:58 > 0:27:00But we went for it and it's really paid off.

0:27:00 > 0:27:04The house has got frontage and we've got two storeys.

0:27:04 > 0:27:07We've got an extra shower room and an extra bedroom.

0:27:09 > 0:27:14And that fourth bedroom now goes alongside three good-sized bedrooms...

0:27:22 > 0:27:23one of which is en suite.

0:27:26 > 0:27:29And there's a completely new family bathroom.

0:27:33 > 0:27:34As Barry planned,

0:27:34 > 0:27:38the work's being carried out by his building firm between jobs.

0:27:38 > 0:27:41So, was it relatively problem-free?

0:27:42 > 0:27:44I think the biggest challenge was actually

0:27:44 > 0:27:46getting down into the property.

0:27:46 > 0:27:50Before, there was concrete steps, very awkward, very cumbersome.

0:27:50 > 0:27:54I think now, by installing part-concrete and part-wood,

0:27:54 > 0:27:58I think we've softened the blow and made it a bit of an area,

0:27:58 > 0:28:01so they can put some planters or whatever somebody wants to put there.

0:28:01 > 0:28:03The chimney has been taken down

0:28:03 > 0:28:07and we've worked together with the neighbours to overcome that.

0:28:07 > 0:28:11In fact, not only have they removed the shared chimney breast,

0:28:11 > 0:28:13both houses have now been properly joined together,

0:28:13 > 0:28:16removing that rather odd gap.

0:28:16 > 0:28:20And, along with new windows, central heating, damp course,

0:28:20 > 0:28:24fixed roof, this is a fairly comprehensive refurbishment.

0:28:24 > 0:28:27But, at what cost?

0:28:27 > 0:28:30We've probably spent about 20,000 on the extension,

0:28:30 > 0:28:31which was pretty straightforward.

0:28:31 > 0:28:34But we've gone over budget a little bit on the renovation,

0:28:34 > 0:28:38on the old parts. We've spent probably about 32,000.

0:28:38 > 0:28:41I think it's the fact we've put a higher spec kitchen in

0:28:41 > 0:28:44and the fact that the fittings are of a good standard.

0:28:44 > 0:28:48There's lots of insulation in the house now, it's nice and warm.

0:28:48 > 0:28:50So, I think we spent our money wisely.

0:28:50 > 0:28:54And I think that will show when we come to rent or sell.

0:28:56 > 0:29:00A £52,000 budget on top of Barry's £135,000

0:29:00 > 0:29:05purchase price takes his total spent £287,000.

0:29:05 > 0:29:06So, is Barry right?

0:29:06 > 0:29:09Has it been worth spending that little bit extra to get

0:29:09 > 0:29:11a better finish?

0:29:11 > 0:29:13What do two local property experts think?

0:29:15 > 0:29:18This particular property has had the layout changed.

0:29:18 > 0:29:23It's changed from being just a small cottage into a family home.

0:29:23 > 0:29:27It's fantastic, it flows, it works.

0:29:27 > 0:29:30It's just got good size, good-proportioned rooms

0:29:30 > 0:29:32and got everything here that's required.

0:29:32 > 0:29:34Well, when arriving at the property,

0:29:34 > 0:29:37I'd seen photographs of it before, although I hadn't been here myself.

0:29:37 > 0:29:39I couldn't believe the transformation, because they

0:29:39 > 0:29:42extended the side of the property, which was a very good move.

0:29:42 > 0:29:45Because the area itself is actually well-known for having family

0:29:45 > 0:29:49accommodation and now it's actually a family property.

0:29:49 > 0:29:53Barry isn't sure whether to rent or sell the cottage.

0:29:53 > 0:29:55Maybe the numbers will help focus the mind.

0:29:55 > 0:29:58The rental value I'd put on the property at the moment

0:29:58 > 0:30:03is between £950 and £1,000 per calendar month.

0:30:03 > 0:30:06In the current market I believe the property, if it was rented out,

0:30:06 > 0:30:10would actually realise £850 per calendar month.

0:30:10 > 0:30:14Even that lower £850 per calendar month could see a rental

0:30:14 > 0:30:18yield of around 5%. But how about the all-important resale

0:30:18 > 0:30:24value on a property Barry's invested £187,000 into?

0:30:24 > 0:30:27The value I'd put on the property today, as the property is now,

0:30:27 > 0:30:32is between £250-£275,000.

0:30:32 > 0:30:34In the current market, I believe the property should

0:30:34 > 0:30:36be marketed at £250,000.

0:30:36 > 0:30:40I think 250 is around the right mark and if it needs to sell fast,

0:30:40 > 0:30:42I think it'll be going on for 250.

0:30:42 > 0:30:47And if he managed to sell the house for that £250,000 valuation,

0:30:47 > 0:30:51he could see a potential pre-tax profit of £63,000.

0:30:51 > 0:30:55Not bad as a sideline project to his main building work.

0:30:55 > 0:31:00But what now is his preferred next step with the property?

0:31:02 > 0:31:05I think we're going to sell, purely so we can move on

0:31:05 > 0:31:08and buy something else and do something else up.

0:31:12 > 0:31:16And it's time for us to move on to our next property, too.

0:31:16 > 0:31:20This is Somercotes, which is close to the borders of Derbyshire

0:31:20 > 0:31:23and Nottinghamshire, and two miles from the town of Alfreton.

0:31:24 > 0:31:27Somercotes is a former mining village

0:31:27 > 0:31:30and was once surrounded by more than five working mines.

0:31:32 > 0:31:33Well, I'm here to see something

0:31:33 > 0:31:35that definitely normally grabs my attention.

0:31:35 > 0:31:38A former chapel. What's it going to be like?

0:31:38 > 0:31:41Well, for a start it's got lots of land attached to it -

0:31:41 > 0:31:45this car park's a good thing. Now, this is part of it.

0:31:45 > 0:31:47Well, it's not quite living up to my expectations of anything

0:31:47 > 0:31:51too grand, but the good news is this is only part of the lot

0:31:51 > 0:31:54because the new part of the chapel's actually here.

0:31:54 > 0:31:57Still not that inspiring. But, hey ho.

0:31:57 > 0:32:00At a guide price of £75,000, let's take a look inside.

0:32:01 > 0:32:05# I have to celebrate you baby

0:32:05 > 0:32:11# I have to praise you like I sh-o-o-u-u-ld...#

0:32:11 > 0:32:14The original chapel at the front was built around the 1890s

0:32:14 > 0:32:19and is now pretty derelict and used mostly for storage purposes.

0:32:19 > 0:32:22# ..sh-o-o-u-u-ld...#

0:32:22 > 0:32:26The replacement, newer, bigger chapel, was built in 1962.

0:32:26 > 0:32:28Let's take a look.

0:32:29 > 0:32:32So, what have we got? Well, straight into a little entrance area

0:32:32 > 0:32:34where you've got loos and a kitchen

0:32:34 > 0:32:37and then into the main body of the chapel.

0:32:37 > 0:32:41And, basically, 1,300 square feet of space.

0:32:41 > 0:32:43Little stage area, some storage behind there.

0:32:43 > 0:32:46Not a bad amount of room, actually,

0:32:46 > 0:32:48and it doesn't seem to be in too bad condition.

0:32:49 > 0:32:53Now, currently it's got D1 class planning permission,

0:32:53 > 0:32:57which basically means it can be used as a church, as it already is,

0:32:57 > 0:32:59or something like an art gallery, maybe a creche,

0:32:59 > 0:33:01maybe a day-care centre.

0:33:01 > 0:33:03Good news is that it's also had planning permission approved

0:33:03 > 0:33:06for change of use to B1 use, which is office space.

0:33:06 > 0:33:10So, all in all, lots of flexibility and options.

0:33:10 > 0:33:12Or, of course, you could just keep it as a church.

0:33:12 > 0:33:15# All you gotta do is repeat after me

0:33:15 > 0:33:19# ABC easy as 123 As simple as... #

0:33:19 > 0:33:22It's great there are so many potential options here.

0:33:22 > 0:33:26The planning permissions that are already in place could be

0:33:26 > 0:33:29a real time-saver for anyone who wants to buy this property.

0:33:29 > 0:33:31# As simple as do-re-mi ABC... #

0:33:31 > 0:33:34The chapel itself has been empty for almost three years,

0:33:34 > 0:33:37although the car park area outside has been unofficially

0:33:37 > 0:33:41used by local residents and business.

0:33:41 > 0:33:45And there's more to the outside than just the car park.

0:33:45 > 0:33:47# Reading, writing, arithmetic... #

0:33:47 > 0:33:49Well, to the side and rear of the property,

0:33:49 > 0:33:52other potential uses for the site start to become apparent.

0:33:52 > 0:33:56It's quite big, 0.2 acres, so one thing you might consider

0:33:56 > 0:33:59is actually knocking the former chapel completely down.

0:33:59 > 0:34:03What you've got then is a very large, well, large enough,

0:34:03 > 0:34:04building plot in a good location.

0:34:04 > 0:34:06We've got mixed use around here -

0:34:06 > 0:34:08some commercial units, some residential property,

0:34:08 > 0:34:10so you'd probably get planning permission for building,

0:34:10 > 0:34:12say, flats or houses.

0:34:12 > 0:34:15It's a bit long and thin, in an ideal world,

0:34:15 > 0:34:18but it's flat and, as I said, it's in a great location.

0:34:18 > 0:34:22So, I reckon, that could be a very interesting opportunity.

0:34:22 > 0:34:27Yes. Yet another option available to whoever buys this property.

0:34:27 > 0:34:32And at a guide price of just £75,000, I imagine there will be

0:34:32 > 0:34:35plenty of people taking a pew, ha-ha,

0:34:35 > 0:34:37at the auction for this former chapel.

0:34:37 > 0:34:40But before that, we asked the auctioneer to take a look around.

0:34:42 > 0:34:44It's actually quite an interesting building

0:34:44 > 0:34:47because it's a bit of a utility building.

0:34:47 > 0:34:51You could almost use it for anything, assuming you got planning consent.

0:34:51 > 0:34:54So, its commercial options, I think, are, obviously,

0:34:54 > 0:34:57some sort of institutional community use.

0:34:57 > 0:35:00St John's ambulance, Scouts, Guides, that sort of thing.

0:35:00 > 0:35:03The residential option, I think, is certainly an option

0:35:03 > 0:35:06because it's surrounded by houses quite apart from commercial concerns,

0:35:06 > 0:35:08a very mixed area.

0:35:08 > 0:35:11So, I think, probably, if you were to get planning consent

0:35:11 > 0:35:15you probably could demolish the building and start again.

0:35:15 > 0:35:17As I thought, lots of options.

0:35:17 > 0:35:20But if you were going to go down the residential route,

0:35:20 > 0:35:23what sort of value could we be looking at considering

0:35:23 > 0:35:26the surrounding area and comparable properties?

0:35:28 > 0:35:29I think you'd probably...

0:35:29 > 0:35:32You might get two pairs of semidetached houses on.

0:35:32 > 0:35:35Alternatively, you might get a higher density of townhouses.

0:35:35 > 0:35:39It's got a good access and it's got a lot of car parking already

0:35:39 > 0:35:42not that you'd need that for the housing purpose.

0:35:42 > 0:35:47However, if you put a semi-detached house on here, three bedrooms,

0:35:47 > 0:35:50it would have a resale value probably of around £130,000.

0:35:50 > 0:35:55What if it was to become a commercial property and was rented?

0:35:55 > 0:35:57If this had consent for office use, and assuming it was adapted

0:35:57 > 0:36:00and upgraded for that purpose, I would say it would have

0:36:00 > 0:36:04a rental value of probably about £7,500-£8,000 a year.

0:36:04 > 0:36:07And you might actually be able to rent out some of the car parking

0:36:07 > 0:36:09to other concerns around here.

0:36:09 > 0:36:12So, there's the possibility of additional income.

0:36:16 > 0:36:18It's not the prettiest chapel in the world,

0:36:18 > 0:36:20but it does offer quite a few options for change of use,

0:36:20 > 0:36:23either for business or residential.

0:36:23 > 0:36:26I think you could knock this thing down and build houses in its place

0:36:26 > 0:36:29and I don't think, particularly, that would be too much of a loss.

0:36:29 > 0:36:32Getting planning permission to do that, however,

0:36:32 > 0:36:35might be a different thing. Who took a chance on the chapel?

0:36:35 > 0:36:38Let's find out, when it went to the auction.

0:36:41 > 0:36:46Lot number 49 is the former Somercotes Hill Methodist Chapel.

0:36:46 > 0:36:49It does have planning consent for conversion to office use.

0:36:49 > 0:36:50Having said that,

0:36:50 > 0:36:54it's equally suitable to a variety of other purposes.

0:36:54 > 0:36:56How much do you want to bid me on it?

0:36:56 > 0:36:5975? 70? £70,000?

0:37:00 > 0:37:0470, thank you very much. At £70,000, opening bid. 71?

0:37:04 > 0:37:0771 I've got, thank you. 71.

0:37:07 > 0:37:0872 at the back.

0:37:08 > 0:37:1173, 74.

0:37:11 > 0:37:14£74,000, 75.

0:37:14 > 0:37:1675,000. 76?

0:37:16 > 0:37:2076 is bid. 76, 77.

0:37:20 > 0:37:2277,000. 78 I've got.

0:37:22 > 0:37:2678. 79 for you, sir? 79.

0:37:26 > 0:37:2879. 80,000.

0:37:28 > 0:37:31After a slow start, the auction room has come alive,

0:37:31 > 0:37:34and we rejoin the auction at 100,000.

0:37:35 > 0:37:38£100,000. 101.

0:37:39 > 0:37:41102.

0:37:41 > 0:37:46103. 103,000, and 4?

0:37:46 > 0:37:48£103,000, 104.

0:37:50 > 0:37:54105. 105, 106?

0:37:55 > 0:37:58£105,000. We're selling...

0:37:59 > 0:38:01..at 105... 106.

0:38:02 > 0:38:04106. 7?

0:38:05 > 0:38:06No?

0:38:06 > 0:38:11£106,000 in the corner, then. At 106,000, going once...

0:38:13 > 0:38:17..going twice, third and last opportunity, all done at £106,000?

0:38:18 > 0:38:21GAVEL BANGS Sold to the corner at 106, thank you.

0:38:24 > 0:38:28# Take me riding in the car car Take me riding in the car car

0:38:28 > 0:38:33# Take you riding in my car car I'll take you riding in my car... #

0:38:33 > 0:38:37That final bid of 106,000 was made by local couple John and Jacqueline.

0:38:37 > 0:38:41In fact, they're more than local - they're neighbours!

0:38:41 > 0:38:45Their garage and car sales business is right next door to the chapel,

0:38:45 > 0:38:48so they just popped round to tell me why they bought it.

0:38:52 > 0:38:55- John, Jacqueline, congratulations. - Thank you.- Well done.

0:38:55 > 0:38:58Tell me why you wanted to buy the place.

0:38:58 > 0:39:00Well, it's so close to my business next door.

0:39:00 > 0:39:03That, um, we really had no option,

0:39:03 > 0:39:07we needed to buy it to enhance the business, and to improve it.

0:39:07 > 0:39:08Give us a bigger area.

0:39:08 > 0:39:12We were using the car park so much that we thought we had no choice

0:39:12 > 0:39:14but to crack on and get it bought.

0:39:14 > 0:39:17Right, have you known about the property, obviously, for a while?

0:39:17 > 0:39:19How long has your business been established there?

0:39:19 > 0:39:22Here, it's been seven years,

0:39:22 > 0:39:25and this place has been empty for about three years.

0:39:25 > 0:39:28So, when it first came up for sale we did make enquiries

0:39:28 > 0:39:31but it was a little bit on the high price.

0:39:31 > 0:39:35- We made an offer, it was rejected. - What was the offer?

0:39:35 > 0:39:38The offer was approximately round about 138.

0:39:38 > 0:39:39Well, you must be delighted then?

0:39:39 > 0:39:41Cos you've jut bought it for a lot less than that!

0:39:41 > 0:39:43We are, obviously, yes, yes.

0:39:43 > 0:39:44MUSIC: Roar by Katy Perry

0:39:44 > 0:39:48Well, yes, having paid £106,000 at auction

0:39:48 > 0:39:52that's a saving of £32,000 over the original offer price.

0:39:52 > 0:39:53Result!

0:39:54 > 0:39:57And it should give them more funding to carry out this project.

0:40:01 > 0:40:05So, tell me exactly what you're going to do with it, then?

0:40:05 > 0:40:09Well, er, at this stage we're probably going to open it all up

0:40:09 > 0:40:12on the front, so we can get cars inside.

0:40:12 > 0:40:14Take a lot of this area out

0:40:14 > 0:40:17so we can have as much space as possible inside.

0:40:17 > 0:40:19- And use it as a car showroom.- Right.

0:40:19 > 0:40:22Get the nice cars in here, er, make them safe.

0:40:22 > 0:40:25And hopefully people will come in and have a look.

0:40:25 > 0:40:28- We're going to put some, probably, some old classics in, as well.- Ooh!

0:40:28 > 0:40:29The front we need to open it up.

0:40:29 > 0:40:32We thought we might do away with the kitchen

0:40:32 > 0:40:36and have big open glass doors all the way across the front.

0:40:36 > 0:40:39So, really spectacular, sort of, showcase for you from the road?

0:40:39 > 0:40:42Yes, hopefully. That would be good.

0:40:42 > 0:40:46Now, at the moment it doesn't have planning permission

0:40:46 > 0:40:50- for anything that you want to do, does it?- No.- Not yet.

0:40:50 > 0:40:52So, what's the steps to getting that, then?

0:40:52 > 0:40:57Well, we did make provisional enquiries before we bought it.

0:40:57 > 0:40:59We were told it probably wouldn't be a problem.

0:41:00 > 0:41:02If they don't want us to do what we want to do

0:41:02 > 0:41:05then we'll have to do one or two other things.

0:41:05 > 0:41:08But as long as we can still use it as part of the business,

0:41:08 > 0:41:11as in car parking, that's the main thing, really.

0:41:11 > 0:41:13So, it's actually in some ways,

0:41:13 > 0:41:16- the car park is just as important as the interior space?- Yeah.- It is.

0:41:16 > 0:41:18In some ways it'd be nice... It's a bit of a...

0:41:18 > 0:41:21Whenever anyone's bought a place like this there's an element of,

0:41:21 > 0:41:23bit of sadness that it's not a church any more, isn't there?

0:41:23 > 0:41:27Yeah, it is really. I mean, there is some stones on the outside buildings

0:41:27 > 0:41:31that have been here, I think, from when it was built as a church,

0:41:31 > 0:41:33so we do really want to preserve those, don't we?

0:41:33 > 0:41:36- When we make the alterations we want to fit those in somewhere.- Right.

0:41:36 > 0:41:40There's people's names and dates on there, so they need to be preserved.

0:41:40 > 0:41:44So, what kind of budget have you got for doing the work?

0:41:44 > 0:41:46- That's a great question. - OK, thank you.- Um...

0:41:48 > 0:41:53- We're probably looking at, I think, probably 30,000-40,000 spend.- Really?

0:41:53 > 0:41:56- Yeah.- That sounds quite a lot. - I want to do it right.

0:41:56 > 0:41:57Want to make it, you know,

0:41:57 > 0:42:00I want to make it nice and make it look the part.

0:42:00 > 0:42:03What kind of timescale for the work?

0:42:04 > 0:42:06Six months to a year?

0:42:06 > 0:42:08- That's what we're thinking of.- Right.

0:42:08 > 0:42:11As long as we've got the time and money, we should be fine.

0:42:11 > 0:42:16- Presumably you'd want to do it sooner rather than later?- Yeah.

0:42:16 > 0:42:17We need to keep it...

0:42:17 > 0:42:23Get it operational and keep the business growing and keep busy.

0:42:23 > 0:42:25Are you going to have to take on new staff to man it?

0:42:25 > 0:42:27More than likely, yes.

0:42:27 > 0:42:30- Yeah, at least, probably, two or three.- Great.

0:42:30 > 0:42:34- So creating a bit of local employment, as well.- I hope so, yes.

0:42:34 > 0:42:35Well, congratulations,

0:42:35 > 0:42:37we look forward to seeing how it all goes for you.

0:42:37 > 0:42:39- Thank you. Thanks very much. - Nice to meet you.- Thank you.

0:42:42 > 0:42:44Well, John and Jacqueline certainly seem to have found

0:42:44 > 0:42:46the perfect place to expand their business.

0:42:46 > 0:42:50But from a chapel to a car showroom, it's one heck of a change of use

0:42:50 > 0:42:54and there's no guarantee the planners will go for it.

0:42:54 > 0:42:56Find out how they get on later in the show.

0:42:59 > 0:43:02Well, we've seen how one project has turned out,

0:43:02 > 0:43:04but what about the other two?

0:43:04 > 0:43:09Yes, time has passed. Has everything gone to plan? Let's find out.

0:43:09 > 0:43:12It was in Cobridge, Stone-on-Trent,

0:43:12 > 0:43:15when we first came across a two-bed terraced house, which was,

0:43:15 > 0:43:19to be frank, cosmetically in a terrible state.

0:43:19 > 0:43:22Kitchen, bathroom, carpets, wall panelling,

0:43:22 > 0:43:27the lot had to be ripped out and the whole shebang started again.

0:43:27 > 0:43:31But this place wasn't a lost cause because structurally,

0:43:31 > 0:43:33it seemed pretty sound.

0:43:33 > 0:43:36With a guide price of £25,000, there was

0:43:36 > 0:43:39potentially room to do the full refurbishment

0:43:39 > 0:43:44and still see some profit, and that's what locally based

0:43:44 > 0:43:49brothers Altur and Atur thought when they paid £30,000 for it at auction.

0:43:49 > 0:43:52But it was perhaps a harder task than they first envisaged.

0:43:54 > 0:43:57So, now you've actually got the property, tell me,

0:43:57 > 0:44:00what do you think of it now you've seen it?

0:44:00 > 0:44:03- It's worse now!- It's worse now?!

0:44:03 > 0:44:09Because at the time when we viewed it through the auction,

0:44:09 > 0:44:13we couldn't get inside properly because of the smell and everything.

0:44:13 > 0:44:17Now that we've got the keys and looked at the condition, oh, dear.

0:44:17 > 0:44:19Some work needs to be done in here.

0:44:19 > 0:44:21Yes, there was loads of work here

0:44:21 > 0:44:25and with plans to rip it all out, things would initially go backwards.

0:44:28 > 0:44:31# It's about to get worse

0:44:31 > 0:44:35# It's about to get worse before it gets better. #

0:44:40 > 0:44:44And they had a £12,000 budget to make it better.

0:44:44 > 0:44:48The brothers hoped, with the help of their building team, they could

0:44:48 > 0:44:51put it back together again to rent or sell in three months.

0:44:54 > 0:44:59And now, just slightly over that three months timeframe, we're back.

0:45:02 > 0:45:06Well, things are looking promising with the new tiles on the roof,

0:45:06 > 0:45:09double glazing, and a smart new front door.

0:45:09 > 0:45:13And inside? Well, let's go upstairs first.

0:45:22 > 0:45:23That's more like it.

0:45:23 > 0:45:27The bedrooms are now clean and fresh and clutter-free.

0:45:27 > 0:45:30And there's no longer just the two bedrooms up here.

0:45:30 > 0:45:32By taking some space from the back bedroom,

0:45:32 > 0:45:35they've managed to squeeze in a shower room.

0:45:35 > 0:45:38That really is a great bonus.

0:45:39 > 0:45:42But what about downstairs?

0:45:42 > 0:45:46Well, that's certainly getting there, with new radiators,

0:45:46 > 0:45:48skirting and plaster work.

0:45:50 > 0:45:54And the kitchen? Well, I'll let Altur update you on that.

0:45:55 > 0:45:58We've got a lovely kitchen unit,

0:45:58 > 0:46:01managed to get really good deals on it as well.

0:46:01 > 0:46:03Nice worktops here as well.

0:46:03 > 0:46:06The door here was actually on the right-hand side.

0:46:06 > 0:46:09We've decided to put it in the middle,

0:46:09 > 0:46:13so you've got a nice walk-in area here, no obstructions.

0:46:13 > 0:46:17So this room, we've had a new door, brand-new windows,

0:46:17 > 0:46:22new radiators, new skirting boards, all the four walls, including

0:46:22 > 0:46:26the ceiling, had to be replastered and it looks really nice, actually.

0:46:26 > 0:46:29I'm quite happy with what we've achieved so far.

0:46:32 > 0:46:35Down here, the bathroom is also still a work in progress.

0:46:37 > 0:46:40As is the rear yard, which needs slabs to be laid.

0:46:40 > 0:46:42But overall, I think

0:46:42 > 0:46:46they've done pretty well in their three-month timeframe.

0:46:46 > 0:46:49What was it like for Altur trying to project manage this,

0:46:49 > 0:46:51along with doing a full-time job?

0:46:53 > 0:46:55It's been a bit of a nightmare,

0:46:55 > 0:46:58working along with the builders, along with my own jobs,

0:46:58 > 0:47:02just trying to fit in with the evenings and the weekends.

0:47:02 > 0:47:03So, most of the...

0:47:03 > 0:47:06All of the painting was actually done by myself.

0:47:06 > 0:47:09So, managed to save quite a lot of money there.

0:47:09 > 0:47:13And it wasn't just him helping out. His family got involved.

0:47:13 > 0:47:17This was a joint project with brother Atur. So, did that go OK?

0:47:17 > 0:47:19Any family fallouts?

0:47:21 > 0:47:24It's been quite fun, actually.

0:47:24 > 0:47:27Yeah, been really enjoyable, working with my brother, yeah.

0:47:27 > 0:47:31He's been supportive and we had ups and downs along the way,

0:47:31 > 0:47:32but we got there.

0:47:32 > 0:47:36As projects go, this was quite a challenge

0:47:36 > 0:47:39and my biggest fear was potentially the house could be a money pit

0:47:39 > 0:47:44and their £12,000 budget might just go in the blink of an eye.

0:47:44 > 0:47:48Spending has gone up to 15,500 now and this is purely

0:47:48 > 0:47:52because of the roof, the tiles that needed to be put on,

0:47:52 > 0:47:55as well as the toilet that we had to put in upstairs.

0:47:57 > 0:48:01That's impressive. If they do get all the work done for £15,500

0:48:01 > 0:48:03and with that £30,000 purchase price,

0:48:03 > 0:48:07the brothers' total spend will be £45,500.

0:48:10 > 0:48:13What do two local property experts think of the work they've

0:48:13 > 0:48:15carried out so far?

0:48:15 > 0:48:19There has been changes since my last visit.

0:48:19 > 0:48:22It has been done to quite a basic standard.

0:48:22 > 0:48:24However, it is close to being habitable.

0:48:24 > 0:48:28Had a quick look round the property to see how it's been updated.

0:48:28 > 0:48:32It's been replastered throughout, updated with new floor coverings.

0:48:32 > 0:48:36The project's obviously set up for a buy to let investor or a tenant.

0:48:36 > 0:48:40I think a good feature for the property is to include

0:48:40 > 0:48:43a first-floor shower room to service both the bedrooms,

0:48:43 > 0:48:45which will be a good selling point.

0:48:45 > 0:48:48Originally, the brothers were leaning towards selling

0:48:48 > 0:48:50the house, once refurbished,

0:48:50 > 0:48:55but have since decided the letting market may be a better option.

0:48:55 > 0:48:59So, is that the right decision for their £45,500 investment?

0:48:59 > 0:49:02There is a demand for this sort of property,

0:49:02 > 0:49:05which would mainly come from landlords,

0:49:05 > 0:49:08and I would anticipate a resale value in the region of £50,000.

0:49:08 > 0:49:11If the property was to go on the market, I would suggest

0:49:11 > 0:49:15that in today's market it's likely to achieve in the region of £50,000.

0:49:15 > 0:49:17A little bit less than I would expect,

0:49:17 > 0:49:20but with the climate, OK with that. Mm.

0:49:22 > 0:49:26Well, yes, resale isn't looking great at the moment in this area.

0:49:26 > 0:49:28Those valuations would offer a potential

0:49:28 > 0:49:32profit of under £5,000, minus taxes and expenses.

0:49:32 > 0:49:35Perhaps the rental figures will be more encouraging.

0:49:35 > 0:49:38I would place this property on the rental market

0:49:38 > 0:49:41in the region of £375 per calendar month.

0:49:41 > 0:49:44In today's market, I would expect the property to

0:49:44 > 0:49:47achieve in the region of £350 per calendar month.

0:49:47 > 0:49:50Again, I was expecting a little bit more, but we've had some

0:49:50 > 0:49:53private tenants offering a little bit more than that.

0:49:53 > 0:49:56So I think we're going to go through that option.

0:49:56 > 0:49:59Well, even £350 per calendar month would see a rental

0:49:59 > 0:50:02yield of around 9%. That's good.

0:50:02 > 0:50:06But was it really worth all the effort?

0:50:06 > 0:50:09It was absolutely a massive challenge for us,

0:50:09 > 0:50:13but at the end, seeing the end result,

0:50:13 > 0:50:17I'm very happy with that and looking forward to something similar again.

0:50:19 > 0:50:23Ah, well. There's one developer happy with his lot,

0:50:23 > 0:50:27but will the same be true for our next auction purchase, which we

0:50:27 > 0:50:31first saw over four years ago in the Derbyshire village of Somercotes.

0:50:33 > 0:50:37This former mining village was the setting for an unusual property,

0:50:37 > 0:50:39a former Methodist chapel,

0:50:39 > 0:50:43and it had the holy trinity of property development -

0:50:43 > 0:50:47lots of land and space, a good guide price, 75,000,

0:50:47 > 0:50:50and potential for planning permission.

0:50:52 > 0:50:56Now, currently, it's got D1 class planning permission,

0:50:56 > 0:51:00which basically means it can be used as a church, which it already is,

0:51:00 > 0:51:04or something like an art gallery, a creche, maybe a day-care centre.

0:51:04 > 0:51:07Good news is that it's also had planning permission

0:51:07 > 0:51:10approved for change of use to B1 use, which is office space,

0:51:10 > 0:51:15so all in all, lots of flexibility and options, or of course,

0:51:15 > 0:51:17you could just keep it as a church.

0:51:19 > 0:51:22# I've been driving in my car. #

0:51:22 > 0:51:26And revving up to get started on this property were John

0:51:26 > 0:51:28and his wife Jacqueline.

0:51:28 > 0:51:33Their successful bid of 106,000 was to buy the property next door,

0:51:33 > 0:51:37as they own the adjacent car sales business and garage.

0:51:37 > 0:51:40But they weren't planning the property development of just

0:51:40 > 0:51:42an oil change.

0:51:42 > 0:51:44It was more like a full MOT.

0:51:46 > 0:51:50At this stage, we're probably going to open it all up, the front,

0:51:50 > 0:51:53so we can get cars inside.

0:51:53 > 0:51:57Take a lot of this area out, so we get as much space as possible inside.

0:51:57 > 0:51:59And use it as a car showroom.

0:51:59 > 0:52:02- We're going to put some old classics in as well.- Oh!

0:52:02 > 0:52:04The front, we need to open it up.

0:52:04 > 0:52:06We thought we might do away with the kitchen

0:52:06 > 0:52:10- and have big open glass doors all the way across the front.- Right.

0:52:10 > 0:52:14So, really, spectacular sort of showcase view from the road.

0:52:14 > 0:52:16Yes, hopefully. That would be good!

0:52:16 > 0:52:18And when we returned, over four years later,

0:52:18 > 0:52:22was it the grand prix of showrooms or not off the starting grid yet?

0:52:23 > 0:52:26# Nothing changes round here

0:52:26 > 0:52:30# Nothing changes round here. #

0:52:30 > 0:52:32That's not exactly what I was expecting

0:52:32 > 0:52:36when the couple talked about a forecourt of classic cars.

0:52:36 > 0:52:39The original building has gone, leaving the land,

0:52:39 > 0:52:43but inside, the main remaining chapel is a bit of a sorry state.

0:52:45 > 0:52:49John has gutted the place and recycled much of the materials.

0:52:54 > 0:52:58And you're much more likely to find logbooks than prayer books

0:52:58 > 0:52:59in here today.

0:52:59 > 0:53:02John decided not to build the showroom after all.

0:53:02 > 0:53:04But why?

0:53:04 > 0:53:07I woke up one morning and thought it was the wrong decision.

0:53:07 > 0:53:11More a business decision because of how many car sales people

0:53:11 > 0:53:15just don't survive in this game. It's very, very tough.

0:53:15 > 0:53:19And I thought I've got enough room at the front of my garage to put

0:53:19 > 0:53:23all my car sales. So it was a complete change of plan.

0:53:23 > 0:53:28Well, the plans may have changed, but they didn't leave the site idle.

0:53:28 > 0:53:32We've gutted the Methodist church, we've flattened the land,

0:53:32 > 0:53:37we've taken two buildings down, we've built walls, we've put fences up.

0:53:37 > 0:53:39We've made it a lot safer.

0:53:39 > 0:53:43We then decided that the next plan would be for housing,

0:53:43 > 0:53:47which we've now got complete planning permission for.

0:53:47 > 0:53:51When I get close to retiring, we're going to look at it then

0:53:51 > 0:53:54and whether I develop it, personally,

0:53:54 > 0:53:57or we sell the land on for somebody to develop it,

0:53:57 > 0:54:00and that is in the next stage, but at the moment,

0:54:00 > 0:54:05we're still using it for servicing cars that we have in every day.

0:54:05 > 0:54:10Great, but what does he mean by planning permission for housing?

0:54:10 > 0:54:14We've got plans for four houses.

0:54:14 > 0:54:18One dormer bungalow, where we stand.

0:54:18 > 0:54:25And then three houses along the front, with an archway for access.

0:54:25 > 0:54:28The planning was a little bit slow for the houses.

0:54:28 > 0:54:32We had to change quite a few different designs.

0:54:32 > 0:54:35The other thing we might do is to put down some

0:54:35 > 0:54:39foundations for one of the houses, so that will keep the planning.

0:54:39 > 0:54:45If we do put footings down, then it's work in progress and we can

0:54:45 > 0:54:50hang on to it for a little bit longer, so we've got the complete planning.

0:54:50 > 0:54:53I think John and Jacqueline have made a good decision here.

0:54:53 > 0:54:57Even if they don't build the three town houses and the bungalow,

0:54:57 > 0:54:59lots of this size can be very valuable

0:54:59 > 0:55:02because of that planning permission.

0:55:02 > 0:55:04And if John puts down foundations,

0:55:04 > 0:55:07this generally stops the permission from running out.

0:55:07 > 0:55:09Very clever indeed.

0:55:09 > 0:55:13So, is it best now to sell on the plot with planning permission

0:55:13 > 0:55:16or should they develop it themselves?

0:55:16 > 0:55:19What do two local property experts think?

0:55:19 > 0:55:22I go back to some places that are totally transformed

0:55:22 > 0:55:25and they're what you expect them to be.

0:55:25 > 0:55:28I think this is one of those exceptions where it's totally

0:55:28 > 0:55:31transformed and it's not what you expect it to be.

0:55:31 > 0:55:34I was going to be interested to see what had happened here, but not a

0:55:34 > 0:55:37lot has happened really, except that a few walls have been

0:55:37 > 0:55:40demolished and a few buildings have been taken down.

0:55:40 > 0:55:41And this is what we've got.

0:55:41 > 0:55:43With a plot like this, they're better on the market

0:55:43 > 0:55:46if they've been totally cleared,

0:55:46 > 0:55:50so I would have cleared the site totally, making it

0:55:50 > 0:55:54easier for the new buyer to get on and start building straight away.

0:55:54 > 0:55:59Planning is definitely the best way forward with this particular plot.

0:55:59 > 0:56:03There are a lot of similar developments planned in the area

0:56:03 > 0:56:06and they have been relatively successful.

0:56:06 > 0:56:09John and Jacqueline spent £106,000 at auction

0:56:09 > 0:56:13and then spend 25 grand on demolition and planning consent.

0:56:13 > 0:56:17So their total spend is £131,000.

0:56:17 > 0:56:22So, what is the plot worth, as it is, with the permission?

0:56:22 > 0:56:27I would estimate that the value of the site now,

0:56:27 > 0:56:29with the benefit of that planning permission,

0:56:29 > 0:56:33has got to be in the region of £130,000 to £140,000.

0:56:33 > 0:56:37I think you can market this particular plot as it

0:56:37 > 0:56:40stands for around £130,000.

0:56:40 > 0:56:45£130,000 would mean John and Jacqueline break even, but then

0:56:45 > 0:56:50they still have their car park secured for the business as a bonus.

0:56:50 > 0:56:53What about the long-term plan? The agents think,

0:56:53 > 0:56:57if they carried through the planning permission for three townhouses

0:56:57 > 0:57:02and one bungalow, the town houses would have a top resale value

0:57:02 > 0:57:07of £125,000 each, while the bungalow could be worth up to £150,000.

0:57:07 > 0:57:11That means that the built properties could be worth

0:57:11 > 0:57:16as much as £520,000 before building costs, taxes and the usual expenses.

0:57:19 > 0:57:22Yeah, I'm pleased with that valuation.

0:57:22 > 0:57:25It's roughly about what we thought it would be.

0:57:25 > 0:57:27Yeah, I'm pretty pleased with that.

0:57:28 > 0:57:33# I know it's gonna happen

0:57:33 > 0:57:37# Some day. #

0:57:37 > 0:57:41If John and Jacqueline are tempted to build one day,

0:57:41 > 0:57:44we'll be back to see how they get on.

0:57:44 > 0:57:48But has the site been good for their business so far?

0:57:48 > 0:57:54It has benefitted us by, you know, so much, it's given us so much to use.

0:57:54 > 0:57:57And I would do it again, if I had to, definitely.

0:57:59 > 0:58:02Well, that's it for today's three properties,

0:58:02 > 0:58:05but there are plenty more where they came from.

0:58:05 > 0:58:09- Join us next time for more tales from the auction rooms.- We will see you then. Goodbye.- Goodbye.