Episode 31 Homes Under the Hammer


Episode 31

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Transcript


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Hello and welcome to Scotland and a fairy-tale castle.

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You might think buying a property seems like a fairy tale.

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But you can possibly make that fairy-tale dream come true by buying your next home under the hammer!

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Auctions are full of all kinds of different properties.

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They certainly are, Dion.

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From mansions to plots of land.

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So let's find out what's on offer for today's buyers.

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It's cupboard love today on Homes Under The Hammer.

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And I'm in Northwich, Cheshire, at this two-bed terraced house.

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You've got a bit of folding space there for your clothes.

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And in Deal, Kent, we finally return to a former

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ambulance station that came with plans for

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houses brimming with more of the same.

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You've got a cupboard here, a cupboard there...

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Well, that's lucky for some,

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as the cupboard at this two-bed terrace in Derby is disturbing my chi!

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It's the opposite of feng shui, it's like feng rubbish!

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First time...

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All of these properties have been bought at auction.

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

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homes went under the hammer.

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It's gone.

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No, your TV isn't in black and white.

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You're looking at the Cheshire town of Northwich.

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The town's salt mining past meant that there were serious issues with subsidence.

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So they got around this by using the medieval timber frame method.

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This meant that they could have jacking-up points instead of foundations.

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So rather than the building falling down when the ground moved,

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they could raise the house to make it level.

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Or if it was too bad,

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they could simply put the building on rollers and change the location.

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Now, that's what I call moving house!

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The house I'm here to see is on the outskirts of the town centre,

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just round the corner from the train station and the A roads will get you

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on the motorway networks in no time at all.

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And here it is.

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It's a two-bed property and has a guide price of £55,000.

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Let's take a look.

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Oh, I do like this. A bit of space!

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Wow, you've got lounge, dining area, all as one.

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Looks like it's a working fireplace.

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But I would imagine it wasn't built like this years ago,

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there would have been two rooms, one there and one there,

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would been a wall here and a wall here.

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And the stairs would have come from the bottom all the way to the top.

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And they've moved the staircase over there and made good use of two rooms.

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Bit of an issue here maybe with safety.

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And no banister as well, here. Maybe dangerous for children.

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But, I like what they've done.

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Let's explore a little bit further.

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Through into the kitchen, which looks in decent condition.

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It might need a bit of a clean-up,

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but I think you'd get away with keeping most of it.

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You've even got a bit of space underneath these cupboards here for a bit more storage.

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Once you've done that, you have yourself a nice kitchen.

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But, I've just got to do this.

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Wait there.

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Let's see what's through the round window!

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THEME FROM PLAYSCHOOL

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Although it's not a terrible state,

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getting this kitchen back to its best won't be child's play.

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In fact, I'd toy around with a complete revamp here.

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It's certainly a great size and I do like that quirky window.

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Time to test those stairs.

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And I don't think they're going to meet building regulations.

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Let's hope the bedrooms and bathrooms are both OK.

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I can see as I come to the top of the stairs, signs of subsidence.

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This is bedroom one at the front of the house. It's a decent size.

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Nice big window again.

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You've got that sink in the corner,

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it's not really a modern-day feature.

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Let's see what else we can find.

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And in here you've got the bathroom,

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which doesn't look in too bad condition.

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You might get away with resurrecting that and keeping it.

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And here you've got the back bedroom which is nice and bright.

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Big window looking out onto the back garden.

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You've got a bit of folding space there for your clothes and hanging space.

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But all in all, it's not too bad up here.

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I like the configuration, and the bathroom upstairs.

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Billy bonus.

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The compromise here is that the bathroom is internal,

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which a lot of people won't like.

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I must admit, I do prefer a window to an extractor fan.

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There's no shower either, so not ideal.

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However, this configuration means that the bedroom space hasn't been compromised.

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So whoever thought this up didn't have their head in the clouds!

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# Little fluffy clouds

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# Little fluffy clouds... #

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Time to plant our feet firmly on the ground.

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So I'm out in the back garden, and normally with houses of this period,

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you get a bit of a postage stamp for a back garden.

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Not in this case.

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This one does stretch some distance and is quite long.

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Now, there's decking as well, which looks in good condition.

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Bit of a jet wash would tidy this up no problem at all.

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You've got a bit of a void here as well,

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maybe it was a veggie patch or might have been a pond or something.

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But you could actually cover that up, level it out with the decking

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and I think you'd have yourself a nice, tidy, back garden.

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Before you give this place your stamp of approval,

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there is something I haven't owned up to yet.

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Northwich has a proud history of salt mining, but that has come at a cost.

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The properties here are prone to subsidence due to the coverings below ground.

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Now, I've built myself a bit of a plumb line here with some string

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and some keys.

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I'm just going to show you, give you an example of how the property has moved.

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I'll just drop that down.

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Hold it against a wall.

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And you can see there's a little bit of movement.

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# I've got the key

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# I've got the secret

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# I've got the key to another way... #

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The doorframe looks pretty off as well.

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But, of course, houses move or settle for lots of reasons.

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Now, a structural engineer can do a more scientific test than mine,

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but it's just something to be aware of.

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An agent from the auctioneers who sold it came round to give us his key points.

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Historically, there has been salt mining in the area.

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That is now finished quite a long, long time ago.

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And there has been residual movement of certain areas,

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small pockets of Northwich, due to this.

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You would find out about the previous mining with a solicitor,

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who will do a brine search.

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What's a brine search?

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Well, one method of extracting salt is a process called brine pumping.

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In the '50s, a compensation scheme was set up called the Cheshire Brine

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Subsidence Compensation Board.

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A solicitor can check the Brine Board's records to see if the property is affected.

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Assuming all is well,

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it would appear that there is very good reason for you preserving

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your stake in this area.

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The town centre is undergoing quite a regeneration programme with

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considerable investment in the town centre itself to utilise more use of the river frontage.

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If you did want to sell this house, once renovated,

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the agent's opinion is that it would sell for around £95,000.

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But that regeneration sounds pretty tempting,

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so what could the rentals be?

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Once the property has been refurbished,

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I would expect this property to achieve comfortably £525 per calendar month.

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Dependent on the quality of the final fittings,

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it could even achieve as much as £540 per calendar month.

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This used to be a standard two-up two-down terraced house.

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But somebody has taken the time to reconfigure it and bring it into the 21st century.

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It does need a bit of TLC, though, to bring it back to its best.

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Let's see who wanted it when it went to auction.

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43. 50 to start.

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50 bid, thank you. At £50,000.

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I'm going once on this.

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Bid is at 50.

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Looking for 51.

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52. 53.

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54. 55.

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56 anywhere else?

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If not, £55,000.

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56.

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57.

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58.

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59, seated now.

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60. 61.

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No? At 61, in the aisle then at £61,000.

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62 anywhere else?

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At £61,000 then for the first time.

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At £61,000...

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62. 63.

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64. 65.

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Sure? 65 then, in the aisle at the back.

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At £65,000 then for the first time.

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At £65,000 for the second time.

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Third and final time at £65,000.

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Your lot, sir, well done.

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The successful bidder who paid 65 grand for this house was joiner Will,

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who went to the auction with his dad, Steve.

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This was the second property in ten days that Will had bought.

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He wasn't hanging around.

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I met him back at the house to find out what his plans were and why he was so keen.

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Really nice to meet you, congratulations.

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-Thank you.

-I do like this property very much.

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What enticed you into it?

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Just the opportunity to move on from what I'm doing beforehand,

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just doing joinery day in day out,

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I don't want to keep up with it when I'm 60.

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-You've got a long way yet!

-I know,

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but if I don't sort a retirement idea out sooner or later,

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I'll soon be trying to cut and fit doors when I've got a walking stick

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in one hand and a saw in the other.

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So when you actually saw this one,

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what was it that you said, I can do this to this, I can do that to it?

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Did you think about changing it, or...?

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The layout is going to just stay the same.

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-Yes.

-The bathroom will be taken out.

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There's no shower in there.

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There was a shower screen, there's a bath with like a shower thing in it,

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which you probably just use to wash your hair.

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Do you remember washing your hair?

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It was a while ago, to be fair. I did have a little bit of a baby Afro.

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-Oh, yeah, yes.

-Many years ago.

-I like it.

-Washed it now and again, thought,

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-too much like hard work...

-Shave it off?

-Get it off.

-Yeah.

-Thanks for that, Will.

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-Yeah.

-We were close before, but now...

-Yeah, I'll step back a bit.

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-So you're going to change it completely?

-Yeah, mainly decor and things like that.

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The soffits and fascias outside, nice shade of teal.

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So, yeah. But, yeah, this will all be stripped out.

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I've got a tenant lined up for it and

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as soon as he said about

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coming back from Australia and said he needed a place to live,

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I showed him the house and he went online and looked at it and said,

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can we get rid of the wallpaper?

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-And I said, yeah, that's fine.

-So is it a mate of yours?

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Yeah, I played rugby with him for years.

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So... Although he is better than me.

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It pains me to say.

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-Don't tell him that, please don't tell him.

-He'll never find out.

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I think the cat is well and truly out of the bag, mate.

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Will is going for a conversion of this property,

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and although he's only 32,

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he's got 11 plus years in the trade and he's got plenty of mates who

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will come together and tackle all the other work.

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Did you read the legal pack, anything in the legal pack?

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Oh, yeah, I downloaded the legal pack and anything I wasn't sure of,

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I just sent it over to a friend of my sister's, Kirsty,

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who is a solicitor.

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She just said it cannot be used for brewing alcohol.

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So that was in the legal part.

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-It's out then, isn't it?

-Yeah, yeah. So, yeah.

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Anything in the legal pack about the salt mining issue at all?

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If you look at a map from above, there's red rings and the further out you go,

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the less likely they're supposed to be.

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And this house is about 50 metres outside of the last ring.

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-OK.

-So it tends to be you should be OK.

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I mean, they've been here for so long,

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the chances are that it's not going to affect it now.

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So how much are you hoping to spend and get all the work done?

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Probably maybe four...

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-Four-grand budget?

-Yeah, about four, four and a half, around that.

-Everything?

-Maybe a bit more.

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And what about time scale? Four grand-ish.

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-What about time scale?

-Timescale,

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well, Chris comes back from Australia in about eight weeks.

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-OK.

-So...

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he gets back and then we go on a rugby tour and then he comes back

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and that's when he's said he'll move in.

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But if it's ready beforehand, he'll move in.

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He even said if it's not ready, because he's an electrician,

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he'll help and get it ready to...

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-There you go.

-But I said he's not having any discount on the rent for that.

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There's your labour, get him over early.

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-Yeah, I'll get him here now.

-Ready to get stuff started?

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Yeah, ready to roll my sleeves up and get stuck into it, basically.

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-You haven't got any sleeves on.

-No.

-But that's because you're a rugby player.

-Yeah.

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And you're a lot stronger and tougher than me.

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-Yeah.

-Good luck, Will.

-Thank you very much.

-Hope it works out, mate, I really do.

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I do like Will. Confident young lad,

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knows what he wants to achieve and anybody that goes to the auction house

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and buys two properties in ten days will have a few issues to tackle,

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but I think he'll be fine. He's used to that.

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You can find out how he gets on later in the programme.

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Back now to Deal on the Kent coast, where in 2013,

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I first saw this row of garages,

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large storage unit and a rundown St John's ambulance headquarters,

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which was beyond resuscitation.

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So what are we looking at?

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A building plot, of course!

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Which had a guide price of £100-£105,000.

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Walking around the plot,

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it unfolded as an L-shape with two road access points.

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One on the main street and the other at the side.

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Good news.

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But not so good news for the existing buildings.

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They would all clearly have to be the casualties here.

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# Doctor, doctor

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# Can't you see I'm burnin' burnin'? #

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So what was the plan to replace this assortment of broken-down buildings?

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The planning permission is for a row of three three-bedroom terraces

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and one detached two-bedroom house.

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Now, the reason you have this slightly odd arrangement

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is the shape of the plot, which is a dogleg,

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so the terraces go along that side and the detached sneaks in along the back here.

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Now, the designs themselves are actually very nice.

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I love the layout downstairs, you've got a nice big lounge,

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then a kitchen and the back with a dining area and I really like that.

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You've got a cupboard here, a cupboard there. Nice and practical, actually.

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So, if new-builds floated your boat back in 2013,

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this site seemed perfect.

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It's in a residential area and ideal for development.

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If you could only get it for the right...deal.

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It's the former St John's premises

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and garages and it's got

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the planning for the redevelopment

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for the terrace of three and the detached house.

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So we're going to say £100,000 for it.

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£100,000, where's my builders?

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£100,000, can I say?

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Give me 90, then. Start me at £90,000.

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90, I'm bid.

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95 bid I have, £100,000 I'm bid.

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105 now, if you like.

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At £100,000, 105 right at the back, I've got.

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108. 110 is standing at the back.

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110. Can I see 110?

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And 12, and 14?

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And 14?

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114. And 16?

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Now there was a lot of interest in the plot pushing the bids up to

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142,000, where we rejoin.

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142 and four and six.

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146 and eight and 50.

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150, and two and four.

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And six. And eight.

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158? No.

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At £156,000 I've got - 158 anywhere else?

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If not, at £156,000 for the first time,

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156 for the second time,

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third and final time at £156,000,

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Well done, madam. You stuck with it and you got it.

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Sticking to the end was Tracy with her builder, Paul.

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That successful bid of £156,000

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smashed the guide price by more than 50 grand.

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Tracy has been on the show before with her business partner Martin.

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Back then, they had 21 rental properties and although they ran the

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property business together,

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Tracy also worked for Martin in his full-time role as a criminal lawyer.

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Tracy had worked for him for over 20 years.

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MUSIC: Nine To Five by Dolly Parton

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Tracy, we meet again!

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-Hello.

-I think it was 2008, the last time we met.

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That's right, in Dover.

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So have you been property developing ever since?

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Back in that time, we'd done a bit of renovation work, but since then,

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we've been doing new-build properties, building flats around Dover.

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Now, the thing that took my eye about this plot is the planning that comes with it.

0:17:300:17:33

You've got a really nice house at the back,

0:17:330:17:35

a nice big detached house and three nice houses that sit in the front.

0:17:350:17:39

Is that something, or WAS that something that particularly appealed

0:17:390:17:43

-to you with this?

-We like the idea that it's got planning on it,

0:17:430:17:46

but it wouldn't appeal to us to have that particular planning on it,

0:17:460:17:49

because we tend to specialise in building flats,

0:17:490:17:52

because we don't sell our properties on,

0:17:520:17:54

we deal with the rental market

0:17:540:17:56

and we find that the rental return on flats

0:17:560:17:58

is much better than it is on houses.

0:17:580:18:00

So you're not going to go with the plans that come with this site?

0:18:000:18:04

No, we've already spoken to an architect and he's drafted plans

0:18:040:18:08

with potential of nine flats on the site.

0:18:080:18:11

Wow, that's incredible.

0:18:110:18:12

I'm stunned actually that you're not going to go with the plans that were

0:18:120:18:16

here, cos I actually thought, looking at them,

0:18:160:18:19

they were quite good and they'd really been thought about.

0:18:190:18:21

Well, they had. And if you were selling the properties,

0:18:210:18:23

then that'd probably be the way forward.

0:18:230:18:26

But if you want a good rental return on what you're building on the site,

0:18:260:18:29

then to build two-bedroom flats in Deal,

0:18:290:18:31

it's a very sought after rental area here.

0:18:310:18:35

Tracy clearly knew her stuff.

0:18:350:18:37

But we knew that changing plans can not only be time-consuming,

0:18:370:18:41

but budget consuming, too.

0:18:410:18:43

So getting the planners involved at the earliest possible opportunity

0:18:430:18:47

is what I always advise.

0:18:470:18:49

So, have you spoken to the planners?

0:18:510:18:53

Have they given you any indication whether they'll pass

0:18:530:18:56

something like this?

0:18:560:18:57

The architects had an initial chat with the person from the council

0:18:570:19:01

and it's looking very hopeful that they will agree the new plans.

0:19:010:19:06

How much would it cost to build what you're looking to do on this site?

0:19:060:19:10

Generally speaking, we estimate about £70,000 per unit.

0:19:100:19:15

-OK.

-So we've got two separate units - phase one and phase two.

0:19:150:19:19

Phase one of the five units,

0:19:190:19:22

you'd be looking at about £350,000

0:19:220:19:24

and the second of the four units, that's about £280,000.

0:19:240:19:29

Wow!

0:19:290:19:30

Ready for some 2013 figures?

0:19:300:19:33

Well, based on our research at the time,

0:19:330:19:36

rental rates on Tracy's projected total costs gave a yield

0:19:360:19:40

of nearly 9%. They say there's no room for sentiment in business.

0:19:400:19:44

But Tracy had discovered, by a twist of fate,

0:19:440:19:47

that this development was personal.

0:19:470:19:49

Well, I grew up in the north end of Deal,

0:19:510:19:56

so I was fairly familiar with this end of Deal,

0:19:560:19:59

and it was only after I bought this place at the auction

0:19:590:20:02

and I was telling my family about it,

0:20:020:20:03

that I found out my parents had their wedding reception here,

0:20:030:20:06

-back in 1968.

-That is amazing,

0:20:060:20:09

to think that once upon a time they sat in here

0:20:090:20:12

having a wedding reception, and now you're going to knock it down!

0:20:120:20:15

How do they feel about that?

0:20:150:20:17

I did ask if they wanted to come and have one final look down...

0:20:170:20:20

for old times' sake,

0:20:200:20:21

but they said it was pretty grotty back in 1968

0:20:210:20:24

and it wouldn't have improved since then!

0:20:240:20:26

And now you're about to improve it completely.

0:20:260:20:28

The best thing we can do with this is knock it down.

0:20:280:20:31

How long do you think it will be before this development is finished?

0:20:310:20:34

I would think it would be about 20 weeks

0:20:340:20:36

until we've got the plans and we are in a position to proceed

0:20:360:20:39

and then phase one, I would think,

0:20:390:20:41

is about six months, 26 weeks, and similar or less for phase two.

0:20:410:20:47

-Well, good luck.

-Thank you.

-It's going to be really exciting

0:20:470:20:50

coming back and seeing this not being here,

0:20:500:20:52

and a lovely block of flats in its place.

0:20:520:20:54

Good luck with the project and hopefully it won't be so long

0:20:540:20:57

-next time I see you.

-Thanks very much.

-Thank you.

0:20:570:21:00

We returned to the site in November 2014,

0:21:010:21:04

more than double the time that Tracy and Martin thought it would take.

0:21:040:21:09

Apart from boarding up, there had been little progress on the project.

0:21:100:21:15

We hope to have planning by the end of January of 2014.

0:21:150:21:20

That didn't happen.

0:21:200:21:21

And the date was extended and extended

0:21:210:21:24

and then the local planning authority said

0:21:240:21:26

they wanted a viability survey carried out,

0:21:260:21:29

which was at our expense, and that led to discussions then

0:21:290:21:33

about a payment which eventually emerged

0:21:330:21:36

and was agreed as a figure of £20,000.

0:21:360:21:39

So, that was agreed in May,

0:21:390:21:42

so we thought we'd have the planning very shortly after that

0:21:420:21:45

but it wasn't in fact until October that...October 2014,

0:21:450:21:49

that planning was finally granted to us.

0:21:490:21:53

But would it be worth the wait?

0:21:530:21:56

Tracy and Martin's original plans were for nine flats,

0:21:560:21:59

but their architect had suggested

0:21:590:22:01

this could be increased to ten flats.

0:22:010:22:04

Back at the office, Tracy took us through the plans.

0:22:050:22:09

# Everybody's gotta have plans

0:22:100:22:13

# She said everybody's gotta have plans... #

0:22:130:22:19

So, looking at the plans now,

0:22:190:22:21

we've got the driveway through the front of the property

0:22:210:22:24

under the archway to the rear of the property.

0:22:240:22:27

On the ground floor we've got three two-bedroomed flats.

0:22:270:22:31

When we move up to the first floor,

0:22:310:22:33

we've got three two-bedroomed flats and a one-bedroom flat.

0:22:330:22:37

Moving to the second floor, which is effectively the loft area,

0:22:370:22:41

there's a large three-bedroom flat

0:22:410:22:44

with one very large bedroom with an en suite

0:22:440:22:48

and two separate double bedrooms with a shared bathroom.

0:22:480:22:51

All the property has got lounge-diners

0:22:510:22:55

as an open space, and separately,

0:22:550:22:59

there's a stand-alone two-floor, two-bedroom unit.

0:22:590:23:03

Once upon a time, you could assume, rightly,

0:23:030:23:06

that you would receive rich rewards with a project like this.

0:23:060:23:10

But after all these trials, would this project leave developers

0:23:100:23:14

Martin and Tracy happy ever after?

0:23:140:23:16

You can find out later on in the programme.

0:23:160:23:19

# In the land of make believe... #

0:23:190:23:24

Still to come, in our two-bed terrace in Derby,

0:23:270:23:30

there will be no cries of, "Timber!"

0:23:300:23:33

So, you might think, out with the chainsaw, here we go.

0:23:330:23:37

Back in Kent, we find out if Tracy and Martin finally cut the ribbon

0:23:380:23:42

on their development of flats, which has been three years in the making.

0:23:420:23:46

Time to go back to Northwich in Cheshire

0:23:510:23:54

to see what happened to that two-bed terraced house which had a nice,

0:23:540:23:57

big open-plan living room and a decent-size kitchen.

0:23:570:24:01

It might need a bit of a clean-up,

0:24:020:24:04

but I'd think you'd get away with keeping most of it.

0:24:040:24:07

But I've just got to do this. Wait there.

0:24:070:24:10

Let's see what's through the round window!

0:24:160:24:18

What also got the thumbs-up were two decent-sized bedrooms.

0:24:190:24:24

Thanks to the staircase having already been moved,

0:24:240:24:27

although I didn't think it was going to pass building regulations.

0:24:270:24:30

But rugby playing joiner Will thought this place was worth a try.

0:24:300:24:35

And I think he's scored with this 65 grand purchase.

0:24:350:24:39

He was ready to tackle that staircase himself,

0:24:390:24:41

and he also planned to convert the bathroom

0:24:410:24:44

into something more user-friendly.

0:24:440:24:46

The bathroom will be taken out.

0:24:480:24:50

There's no shower in there, there was a shower screen,

0:24:500:24:53

there's a bath with a shower thing

0:24:530:24:55

which you'd just use to wash your hair.

0:24:550:24:57

-Do you remember washing your hair?!

-It was a while ago, to be fair!

0:24:570:25:00

-To be fair, I did have a little baby Afro, many years ago.

-Yeah.

0:25:000:25:03

Washed it again and I thought, too much like hard work.

0:25:030:25:06

-Shave it off.

-Get it off!

-Yeah.

0:25:060:25:08

I do shave, from choice, Will!

0:25:080:25:10

Anyway, you said two-and-a-half months.

0:25:100:25:12

It's been just over a year, and we're back.

0:25:120:25:15

The outside looks much smarter.

0:25:160:25:18

New guttering and new door and some work around the windows

0:25:180:25:22

are a vast improvement.

0:25:220:25:24

But has rugby player Will got it match fit and ready for selection?

0:25:240:25:28

Well, Will, you have scored a great try here

0:25:360:25:39

and a great conversion, to boot.

0:25:390:25:41

In the living room, the old stairs wouldn't have passed building regs.

0:25:410:25:45

So to keep things above board here,

0:25:450:25:47

Will boxed them in and added a cupboard underneath the stairs,

0:25:470:25:51

just for a bit of storage. The handrail will go on

0:25:510:25:54

once the new tenants have moved in their furniture.

0:25:540:25:56

Now, I was warned

0:25:590:26:00

that the round window that I loved had been taken out.

0:26:000:26:04

But they haven't taken it out.

0:26:040:26:06

They've replaced it with a brand-new version.

0:26:060:26:08

What a result. And the new kitchen looks pretty smart, too.

0:26:080:26:12

Upstairs in the bathroom, things remain largely the same.

0:26:170:26:21

Although now, you can have a shower and wash your hair at the same time.

0:26:210:26:24

If you've got any! And if you thought the work in the bedroom

0:26:240:26:28

seemed simple enough, think again.

0:26:280:26:30

The biggest issue we had was a patch of damp coming through on the wall.

0:26:320:26:36

I realised there was a couple of weeds growing out of the brickwork,

0:26:360:26:40

so we got up on the roof at the back to repair it, and,

0:26:400:26:43

in pulling the plant out, it was like taking a plug out of a bath.

0:26:430:26:47

It just let the water come into the house a lot easier and quicker.

0:26:470:26:51

So we had to re-point up the back of the house

0:26:510:26:54

and then, while we were up there, we realised the roof over the extension

0:26:540:26:57

was on its last legs, really,

0:26:570:26:59

so we re-insulated the whole of the extension,

0:26:590:27:02

and felt and battened it and got all the roof redone.

0:27:020:27:06

Will has been lucky enough to have a bit of help from his dad, Steve.

0:27:060:27:10

Together, they have moved loads of rubbish and rubble

0:27:100:27:13

from the back garden and now it looks...

0:27:130:27:16

bang on.

0:27:160:27:18

However, Will found his ambitious,

0:27:180:27:19

two-month timescale going a bit pear shaped,

0:27:190:27:22

as he had another project to work on, which did come first.

0:27:220:27:26

We basically packed the van up, came here and just started here,

0:27:260:27:30

so, from starting here, I was then working through winter,

0:27:300:27:34

where my own business was a lot busier,

0:27:340:27:37

so my time that I had to get here was a bit more constrained.

0:27:370:27:41

So it still took the same amount of hours.

0:27:410:27:44

I just couldn't get here as often as I would have liked to have done.

0:27:440:27:46

I'm really pleased with the finished product,

0:27:460:27:49

considering the money that was spent and the time we put in it.

0:27:490:27:53

I'm emotionally drained and I'm shattered after doing it,

0:27:530:27:56

and if anyone is thinking of doing it and thinks,

0:27:560:27:58

if you watch the show and think, "This is easy," it really is not.

0:27:580:28:01

It really is hard work.

0:28:010:28:03

Wise words, Will!

0:28:030:28:05

It's a lot harder than it looks.

0:28:050:28:07

And another thing people find hard

0:28:070:28:09

is setting the right budget and sticking to it.

0:28:090:28:12

Will thought he would spend £4,500. So...?

0:28:120:28:15

To do the work on the house has probably cost about £4,500.

0:28:150:28:18

Including the legal fees, mortgage payments and insurance,

0:28:180:28:21

we're probably pushing up to around six, seven.

0:28:210:28:24

So it's still been a low turnover.

0:28:240:28:26

But I'm doing the house up to rent out,

0:28:260:28:28

so you can't get carried away, you've just got to be realistic.

0:28:280:28:31

Inside, I always knew it would look like this,

0:28:310:28:33

because that's how I planned it.

0:28:330:28:35

Outside, I never thought I'd get the garden to look how it does

0:28:350:28:38

and you always need to work on kerb appeal at the front of the house,

0:28:380:28:41

cos when people are online, looking for somewhere to rent,

0:28:410:28:44

you've got seconds to grab their attention,

0:28:440:28:45

when they're scrolling past terraced house after terraced house.

0:28:450:28:48

And all of a sudden, you see one with a nice, new front door

0:28:480:28:52

and a new little roof over the bay window,

0:28:520:28:54

new gutters and facias, and that's all it needs,

0:28:540:28:56

and then they click on it, and once they're inside,

0:28:560:28:59

they can see that everything's finished.

0:28:590:29:00

But will it catch the eye of two local estate agents?

0:29:010:29:05

I wonder what their first impressions are.

0:29:050:29:08

It's nice. The bathroom being upstairs is a massive advantage.

0:29:090:29:12

A lot of the properties around this area have a downstairs bathroom.

0:29:120:29:15

Downstairs layout - nice, big room. Yes, it's a nice property.

0:29:150:29:20

I think the way the spec's been done, it's a very good job.

0:29:200:29:23

I think the garden's a real selling point.

0:29:230:29:25

So it's a score on the first impression front.

0:29:260:29:29

But with Will's mate Chris still potentially moving in,

0:29:290:29:32

let's find out the agents' rental valuations

0:29:320:29:35

and if they match Will's plans.

0:29:350:29:37

I would expect this property to achieve on the rental market

0:29:370:29:40

between £550 and £575 per calendar month.

0:29:400:29:43

My estimated rental valuation would be £595 per calendar month.

0:29:430:29:49

Yeah, that's above what I was going to ask anyway,

0:29:490:29:51

but this house is bigger than the previous house that we bought,

0:29:510:29:55

which we're charging £525 for, so I'm pleased with those figures.

0:29:550:29:59

If Will changed that top valuation to £595,

0:30:000:30:03

he could be in for a yield of nearly 10%.

0:30:030:30:07

And while he's not planning to sell,

0:30:070:30:09

the agents thought that he could achieve £100,000.

0:30:090:30:13

A potential profit of around 28 grand, minus taxes and usual fees.

0:30:130:30:18

So, a good result, but clearly, it's been tough.

0:30:180:30:21

What has he learned from this project?

0:30:210:30:23

The biggest thing I've learned is trying to balance your time with family life,

0:30:230:30:28

but, over the whole period of it,

0:30:280:30:30

I promised my wife I wouldn't work Sundays,

0:30:300:30:33

so we could have a bit of family time,

0:30:330:30:35

and we've got a baby due in July,

0:30:350:30:36

so my wife's 29 weeks pregnant at the moment so she's desperate for me

0:30:360:30:40

to get this finished so that we can have a bit more time at home

0:30:400:30:43

and get the house ready for the baby that's on the way.

0:30:430:30:46

Best wishes for the baby's arrival, both to you and Danielle.

0:30:460:30:50

However, if Will's friend Chris moves in,

0:30:500:30:52

they won't be wetting the baby's head with home-made brew.

0:30:520:30:56

In the legal pack, it states that you cannot brew alcohol in this property.

0:30:560:31:00

So I'm just going to have to tell him that,

0:31:000:31:02

that he can't take up that hobby.

0:31:020:31:05

See? What do we always tell you?

0:31:050:31:07

You must always read the legal pack.

0:31:070:31:10

Cheers!

0:31:100:31:11

-# California...

-#

0:31:140:31:16

Not a palm tree in sight. But this really is California.

0:31:170:31:21

California, Derby, that is.

0:31:210:31:23

An area that first appeared on the map in the 1880s.

0:31:230:31:27

We'll be hoping for something of a gold rush with today's auction lot.

0:31:270:31:31

Well, it may be known as California,

0:31:340:31:36

but most people call it the West End.

0:31:360:31:38

And a very popular area it is, too, especially with students.

0:31:380:31:42

So, student market straight in the mind there -

0:31:420:31:44

renting out a possibility.

0:31:440:31:46

Especially when you think about the guide price -

0:31:460:31:48

£46,000 plus, for a two-bed mid-terrace.

0:31:480:31:52

Mm-hm!

0:31:520:31:53

So, a very standard layout with this one.

0:31:530:31:56

Through the front door into your front lounge.

0:31:560:31:59

Obviously an open fire at some point.

0:31:590:32:01

There's a gas fire or an electric fire there.

0:32:010:32:03

That needs to be checked out, for sure.

0:32:030:32:05

And put something dramatic there, it'd be really lovely.

0:32:050:32:08

A nice, welcoming feature.

0:32:080:32:09

There's obviously central heating

0:32:090:32:11

although the radiators look quite old,

0:32:110:32:13

so you'd definitely want to have that checked out as well.

0:32:130:32:15

And there's just a general feeling

0:32:150:32:17

that the house is in need of some updating.

0:32:170:32:20

The fireplace has been taken out there, in this rear room.

0:32:200:32:24

Which probably would have been the kitchen at some point in the property's life,

0:32:240:32:29

but, as many of these properties have had over the years,

0:32:290:32:32

probably an extension here to create the kitchen area right at the back.

0:32:320:32:37

No loo so far. Well, that's good news

0:32:370:32:39

cos there can only be one place where it is and that's upstairs.

0:32:390:32:42

Well, I suppose it could be in the garden, but unlikely!

0:32:420:32:45

-# Toodle-oo to you...

-#

0:32:450:32:48

Well, an alfresco toilet may be the least of the issues here.

0:32:510:32:55

You'll need new decor, a new kitchen

0:32:550:32:57

and, at the back of the property,

0:32:570:32:59

a lean-to area that I think you need to lose.

0:32:590:33:02

Speaking of "loos", let's take a look upstairs for that bathroom.

0:33:020:33:06

Well, as predicted and suggested,

0:33:080:33:11

the bathroom is exactly where you'd want it to be, upstairs.

0:33:110:33:14

And it's a good size, so double thumbs up.

0:33:140:33:17

Well, not quite because you have to access it

0:33:170:33:20

through the second bedroom, so that isn't ideal, is it?

0:33:200:33:25

It's an en suite to this bedroom, almost,

0:33:250:33:27

but it's a family home, it just doesn't work.

0:33:270:33:29

There is, of course, an easy solution.

0:33:290:33:31

You build a stud partition here

0:33:310:33:33

and you put a separate door into that room there.

0:33:330:33:35

You are obviously going to lose that space, but then, at least,

0:33:350:33:38

people can easily access that bathroom.

0:33:380:33:40

But while I'm in here, look at this!

0:33:400:33:42

What a great bit of design this is.

0:33:420:33:44

You've got this huge cupboard blocking the light from this window.

0:33:440:33:47

It's like the opposite of feng shui, it's like feng rubbish!

0:33:470:33:51

Anyway, that needs to come out and that would give, again,

0:33:510:33:54

the room a really nice feel.

0:33:540:33:56

There's lots to do with this house, but you know what?

0:33:560:33:59

I think it's worth doing.

0:33:590:34:01

Feng rubbish?!

0:34:030:34:05

Somehow, I don't think that style of design will ever take off!

0:34:050:34:08

And the chi is somewhat off in the other bedroom, too.

0:34:080:34:12

Upstairs in general needs some serious reconfiguring.

0:34:120:34:16

Much like the back garden.

0:34:170:34:19

Well, at the back of the property,

0:34:190:34:21

a little courtyard and then

0:34:210:34:24

two really potentially huge problems for such a small space.

0:34:240:34:29

One is that tree.

0:34:290:34:31

It totally dominates the space here.

0:34:310:34:33

So you might think, well, out with the chainsaw, here we go.

0:34:330:34:36

Hmm. First of all, you've got to check that any large tree

0:34:360:34:39

doesn't have what's called a tree preservation order on it.

0:34:390:34:43

Cos if you touch a tree that's got one of those,

0:34:430:34:45

you're in big trouble.

0:34:450:34:46

So, first of all, you need to check whether or not it has one of those,

0:34:460:34:49

then you can decide what you're going to do with it.

0:34:490:34:53

That's the first issue. The second issue is this.

0:34:530:34:55

It's a shed. What could be the problem there?

0:34:550:34:57

Well, actually, it's the roof.

0:34:570:34:59

Look at that corrugated material.

0:34:590:35:01

My guess is that that is asbestos.

0:35:010:35:04

It has to be taken away by a specialist contractor

0:35:040:35:07

who will treat it with the care it deserves.

0:35:070:35:10

Who would have thought such a small space

0:35:100:35:12

could throw up such big problems?

0:35:120:35:14

# Don't cut me down

0:35:140:35:16

# Don't set me free

0:35:160:35:20

# Don't walk away Don't let me be... #

0:35:220:35:26

Just make sure to check with your local council

0:35:260:35:29

that any tree is not covered by a TPO.

0:35:290:35:32

Meanwhile, we're going to check out this property

0:35:320:35:34

with an agent from the auctioneers who sold the house,

0:35:340:35:37

guided at £46,000.

0:35:370:35:39

There is some work needed to the roof.

0:35:390:35:42

The soffits and fascias need to be treated.

0:35:420:35:44

There will be some damp and timber work to be done

0:35:440:35:46

and it certainly needs a kitchen and bathroom.

0:35:460:35:49

I would think, to get this property up to a good standard,

0:35:490:35:51

you would need a budget somewhere in the region of £15,000.

0:35:510:35:54

15 grand on top of the £46,000 guide price

0:35:550:35:59

would mean a total outlay of £61,000.

0:35:590:36:02

So, could you see a return on the sales and rental markets?

0:36:020:36:05

If this property were renovated to a good standard,

0:36:080:36:10

I would expect it to achieve £95,000 on today's sales market.

0:36:100:36:14

I would anticipate it to achieve somewhere in the region

0:36:140:36:17

of £500 per calendar month.

0:36:170:36:18

Wow! So, potentially a £34,000 profit

0:36:200:36:23

or a 10% yield in a popular rental area.

0:36:230:36:26

You could be California Dreaming of a good profit here!

0:36:260:36:30

Well, some work to be done, not least with the internal layout

0:36:350:36:39

and some unanswered questions in terms of roofs and trees,

0:36:390:36:42

but apart from that, it is still an attractive property

0:36:420:36:46

in a popular location for a very good guide price.

0:36:460:36:49

Let's see who went for it when it went under the hammer.

0:36:490:36:52

Lot number two, who's got 50,000?

0:36:550:36:58

50,000? 45, then, to put it into the bidding, thank you.

0:36:580:37:01

£45,000 is the start.

0:37:010:37:03

46 is bid.

0:37:030:37:05

At 46, 47, at 47, 48.

0:37:050:37:09

At 48. 49.

0:37:090:37:12

49, 50,000.

0:37:120:37:14

At 50. 51. 52. 53.

0:37:140:37:18

54. 55.

0:37:180:37:21

56. 57.

0:37:210:37:23

I've got two of you at 58. Are you going to separate them, sir?

0:37:230:37:27

59. At 59.

0:37:270:37:28

60, one of you?

0:37:280:37:30

60, identical.

0:37:310:37:33

61, thank you. 61.

0:37:330:37:36

62 at the back.

0:37:360:37:39

62. 63, a new bidder here.

0:37:390:37:41

At 63, 64?

0:37:410:37:44

64.

0:37:440:37:45

At 64,000.

0:37:450:37:47

Five, Sir? 65.

0:37:470:37:48

Bid's right at the back at 65,000.

0:37:480:37:51

We're going to sell at £65,000.

0:37:510:37:54

Once.

0:37:540:37:55

66. 67?

0:37:550:37:58

500?

0:37:580:38:00

66,500.

0:38:000:38:02

The same, no?

0:38:020:38:03

At £66,500 once,

0:38:030:38:07

twice, third chance?

0:38:070:38:09

Sold at the back at £66,500, thank you.

0:38:100:38:13

And that nerve-racking auction ended with Paul's £66,500 bid.

0:38:130:38:18

£20,000 over the guide price.

0:38:180:38:21

He came along to tell me about the auction experience

0:38:210:38:24

and his plans for the property.

0:38:240:38:26

Paul, good to meet you.

0:38:290:38:31

-Good to meet you.

-Congratulations.

0:38:310:38:33

Tell me why you wanted to buy this house.

0:38:330:38:35

I've always wanted to do a house up to sell on, really.

0:38:350:38:40

-Right.

-I've done one previously before, which I rent out.

0:38:400:38:44

Really enjoyed it,

0:38:440:38:45

and it's something I'm really looking forward to doing.

0:38:450:38:48

So what is it that you enjoyed so much?

0:38:480:38:50

Doing something different than electrical work.

0:38:500:38:53

I'm an electrician by trade.

0:38:530:38:54

-Right.

-But I enjoy doing the general building work as well.

0:38:540:38:58

-So...

-But you're actually qualified to do wiring on houses?

0:38:580:39:01

-Yes, I am.

-Oh, that's very convenient, then, isn't it?

0:39:010:39:04

-It is, yeah.

-Great.

0:39:040:39:05

So what was it that made you want to buy this house?

0:39:050:39:08

To be honest, it was the guide price, really.

0:39:080:39:10

I thought, if I could get it as close as I could to the guide price,

0:39:100:39:14

there's potential to make a bit of money on it.

0:39:140:39:17

-So...

-You paid a little bit above the guide price, didn't you?

0:39:170:39:20

-Yes, I did.

-20-odd thousand.

0:39:200:39:21

-A bit of auction fever, I suppose.

-Was that your last bid?

0:39:210:39:25

-Were you going to carry on?

-No, I wasn't going to carry on, no.

0:39:250:39:28

-I'd set myself a limit of £65,000.

-Right.

0:39:280:39:31

It went for £66,500.

0:39:310:39:34

-So...

-What are you going to do to sort it out, then?

0:39:340:39:37

It needs a new bathroom, kitchen,

0:39:370:39:41

windows, general decorating everywhere.

0:39:410:39:44

Obviously, it needs rewiring.

0:39:440:39:46

So, pretty much the main things you'd expect from modernising.

0:39:460:39:51

Any plans to change the internal layout at all?

0:39:510:39:55

Yes, I am. In the upstairs bedroom, currently,

0:39:550:39:57

you have to walk through the bedroom to get to the bathroom.

0:39:570:40:00

Erect a corridor in there.

0:40:000:40:02

It will make the bedroom slightly smaller, but it's more practical.

0:40:020:40:06

What about downstairs here?

0:40:060:40:08

Any plans? There's this strange little lean-to out the back.

0:40:080:40:11

Yes, it's falling to pieces anyway. It's got to come down.

0:40:110:40:15

And perhaps put a little wall in between the next-door neighbour's.

0:40:150:40:20

There's currently part of one anyway.

0:40:200:40:23

Then sort of open all of that area up.

0:40:230:40:26

Being an electrician will save Paul plenty,

0:40:280:40:30

and he plans to do most of the other work himself.

0:40:300:40:33

But he'll still need to find cash

0:40:330:40:35

for a gas engineer to check the boiler and a plasterer.

0:40:350:40:39

So what's the budget going to be?

0:40:420:40:44

I've set myself a budget of £10,000.

0:40:440:40:46

-OK.

-Obviously, I'm hoping to spend less than that

0:40:460:40:49

by doing most of it myself, so...

0:40:490:40:51

And the time scale?

0:40:510:40:53

-Three months.

-OK.

0:40:530:40:54

So, are you doing it in the evenings, weekends, or what?

0:40:540:40:58

Well, the work I do currently, I tend to not have much work around,

0:40:580:41:04

December, January time.

0:41:040:41:06

-OK...

-So that should give me plenty of time to do some full days on it.

0:41:060:41:10

-Right.

-But, other than that, it'll be nights, evenings and weekends.

0:41:100:41:16

One issue that was flagged up is the tree at the back.

0:41:160:41:19

Do you know anything about that?

0:41:190:41:21

I just know that it takes up most of the garden.

0:41:210:41:24

Do you know if it's got a preservation order on it or anything like that?

0:41:240:41:27

There was nothing in the legal pack that mentioned the tree.

0:41:270:41:30

-So what are you going to do with it?

-First of all,

0:41:300:41:32

I'm going to have the lower branches taken down,

0:41:320:41:35

just to see what it looks like.

0:41:350:41:37

Just tidying it up, really.

0:41:370:41:39

So, what about the shed? I was a bit concerned about

0:41:390:41:41

whether that might contain asbestos.

0:41:410:41:43

-I've found that it does.

-Oh, right.

0:41:430:41:46

A friend of mine has had it sampled.

0:41:460:41:49

And it does contain asbestos,

0:41:490:41:51

so I've got to get a specialist contractor to remove it.

0:41:510:41:55

And once it's done, the plan is to sell it on?

0:41:550:41:58

-Yes, it is, yeah.

-What kind of profit are you hoping to make?

0:41:580:42:00

-£10,000 on it.

-If it does that for you, then you're happy with that?

0:42:000:42:05

-Yes, I'll be well happy with that.

-And move on to the next one.

-Yeah.

0:42:050:42:08

Well, listen, congratulations, good luck. We'll see how you get on.

0:42:080:42:11

Thank you.

0:42:110:42:12

Well, lots of work to be done, but Paul doesn't seem too fazed by it.

0:42:120:42:17

One unknown sorted.

0:42:170:42:19

Yes, the shed does have asbestos.

0:42:190:42:21

The other, when it comes to the tree,

0:42:210:42:23

well, I think some more investigation is required.

0:42:230:42:26

Will this turn out to be a Californian dream for Paul,

0:42:260:42:29

or a nightmare? You can find out later in the show.

0:42:290:42:32

Sometimes, no matter how hard you try, well,

0:42:360:42:38

a plan just won't come together.

0:42:380:42:41

How many property projects become derailed?

0:42:410:42:43

-Oh, quite a few.

-Yes, time, money, life just gets in the way.

0:42:430:42:47

But how did our next two buyers get on? Let's find out.

0:42:470:42:51

We'd already been back to Deal on the Kent coast

0:42:530:42:56

to track the progress of the former

0:42:560:42:57

St John's Ambulance station and surrounding land.

0:42:570:43:00

The plot was auctioned with planning permission for four houses.

0:43:000:43:05

But the company who purchased the lot, represented by Tracy,

0:43:050:43:08

weren't keen on the existing plans.

0:43:080:43:11

We like the idea that it's got planning on it,

0:43:130:43:15

but it wouldn't appeal to us to have that particular planning on it

0:43:150:43:18

because we tend to specialise in building flats,

0:43:180:43:21

because we don't sell our properties on - we deal in the rental market.

0:43:210:43:25

Tracy and her partner Martin submitted plans for ten flats

0:43:250:43:29

in December 2013, hoping for a relatively quick turnaround, but...?

0:43:290:43:33

Then the local planning authority said they wanted

0:43:330:43:36

a viability survey carried out, which was at our expense.

0:43:360:43:40

Martin and Tracy then engaged an independent assessor

0:43:400:43:44

to do the viability study,

0:43:440:43:46

and a planning advisor to ease the flow through planning.

0:43:460:43:49

So we thought we'd have the planning very shortly after that,

0:43:510:43:54

but it wasn't in fact until October 2014

0:43:540:43:57

that planning was finally granted to us.

0:43:570:44:02

With that permission finally coming through when we met up with them

0:44:030:44:06

again, it had by that time taken 14 months,

0:44:060:44:09

and we all know that, before a brick can be laid...

0:44:090:44:12

# Everybody's gotta have plans... #

0:44:120:44:16

To see if the plans have turned into a reality,

0:44:160:44:19

one year, five months and eight days since we last visited,

0:44:190:44:22

we're back.

0:44:220:44:24

Construction is almost complete,

0:44:260:44:28

with block A containing eight flats and block B containing

0:44:280:44:32

a two-bedroom flat upstairs and another one downstairs.

0:44:320:44:36

# I got friends

0:44:390:44:41

# I got family here... #

0:44:410:44:43

The buildings tie in with the company's signature style

0:44:430:44:47

of yellow bricks, black-tiled roofs and red brick

0:44:470:44:50

which illustrates where one dwelling ends and another begins.

0:44:500:44:54

It's taken a great deal of tenacity and vision

0:44:540:44:57

to develop this troublesome site.

0:44:570:45:00

# When the water is too deep to swim

0:45:000:45:03

# We still swim... #

0:45:030:45:05

The site's side entrance is also much improved.

0:45:070:45:10

# I got friends

0:45:120:45:14

# I got family here... #

0:45:140:45:16

Let's start at the top of block A,

0:45:160:45:19

and the only three-bedroom penthouse flat.

0:45:190:45:22

There are en-suite facilities in one of the three bedrooms.

0:45:310:45:34

There are six two-bedroom apartments in block A,

0:45:340:45:38

three on the ground floor and three on the first floor.

0:45:380:45:42

This is a typical example.

0:45:420:45:44

# I got friends

0:46:000:46:02

# And I got family here. #

0:46:020:46:05

So, how do Tracy and Martin feel to finally have it almost finished?

0:46:050:46:10

It's been a very interesting project.

0:46:100:46:12

We've built a building which has

0:46:120:46:15

concrete floors on the basis that it's a build to rent property,

0:46:150:46:21

we intend to keep the property and rent out over many years.

0:46:210:46:24

The noise levels should be well contained

0:46:240:46:26

as a result of there being concrete floors.

0:46:260:46:29

And we feel that's going to be much easier to manage,

0:46:290:46:31

so far as tenants are concerned.

0:46:310:46:33

In respect of the roof,

0:46:330:46:35

because we've built this penthouse suite into the roof,

0:46:350:46:38

it's contained a considerable amount of steel

0:46:380:46:42

and the roof itself, the woodwork into the roof,

0:46:420:46:45

was really quite complicated to do,

0:46:450:46:47

and we're really pleased with the result.

0:46:470:46:49

That sounds expensive.

0:46:490:46:51

And for a project that has taken almost three years,

0:46:510:46:54

how are the finances bearing up?

0:46:540:46:56

Before we started on build costs,

0:46:560:46:58

we'd got to a figure of approximately £200,000.

0:46:580:47:02

We agreed build costs totalling £804,000.

0:47:020:47:07

And then the finance for the bank

0:47:070:47:10

has been about £40,000 to get to this stage.

0:47:100:47:13

And that includes the legal costs, the build costs in total,

0:47:130:47:17

interest to the bank, solicitors' fees.

0:47:170:47:20

The land was purchased at auction for what seemed

0:47:200:47:23

a relatively small sum of 156,000 grand.

0:47:230:47:26

But by the time all the planning issues were solved,

0:47:260:47:30

that became £200,000.

0:47:300:47:32

Now, the £804,000 not only covered building costs,

0:47:320:47:36

but, among other things, clearing the site and installing utilities.

0:47:360:47:41

All in all, a whacking grand total of £1,044,000.

0:47:410:47:46

But don't forget that there are ten flats and Tracy has a favourite.

0:47:460:47:51

The one-bedroom flat is probably my favourite one in the block.

0:47:510:47:54

It's very light, airy,

0:47:540:47:56

it's got beautiful Juliet balconies with a very nice view

0:47:560:47:59

and the sun comes in there in the morning.

0:47:590:48:02

A sunny outlook regarding prices of fixtures and fittings

0:48:020:48:06

is also evident throughout the development,

0:48:060:48:09

as the same tiles, kitchen units

0:48:090:48:11

and bathroom furniture have been used throughout,

0:48:110:48:14

enabling a bulk purchase.

0:48:140:48:16

Pardon the pun, Deal price to be obtained!

0:48:160:48:19

Martin and Tracy have been in regular contact with the site,

0:48:190:48:23

although not directly project managing themselves.

0:48:230:48:26

The work's been carried out by our builder, Paul.

0:48:280:48:30

We had an agreement with him at the outset

0:48:300:48:32

whereby he would be doing the on-site project managing.

0:48:320:48:36

Some of the project managing so far as the bank's surveyor was concerned

0:48:360:48:40

was carried out by way of a desktop arrangement,

0:48:400:48:43

so we would come down and take the photographs

0:48:430:48:45

and supply them to the bank and the bank's surveyor.

0:48:450:48:48

Tracy and Martin have been getting regular valuations

0:48:490:48:52

at various stages of the build.

0:48:520:48:54

An agent from the company they have chosen to market the properties

0:48:540:48:58

agreed to give us his current valuations.

0:48:580:49:00

We know the intention has always been to rent.

0:49:000:49:02

But, if they did want to sell now, would they make a profit?

0:49:020:49:07

I'd put the one-bedroom on at £120,000,

0:49:070:49:11

the two-bedroom at £130,000

0:49:110:49:14

and the three-bedroom at £140,000.

0:49:140:49:17

Going by those figures,

0:49:190:49:20

that would make all ten properties worth a total of £1.3 million.

0:49:200:49:24

Their total spend on this project is £1,044,000.

0:49:240:49:30

So that's a potential profit of £256,000.

0:49:300:49:34

But it's the rental values that matter most to Tracy and Martin.

0:49:340:49:38

They would range between £575 per calendar month

0:49:400:49:45

and £725 per calendar month.

0:49:450:49:47

Which is much in line with what Tracy and Martin are getting.

0:49:470:49:52

They have the one-bed rented at the low end, at £575 per month,

0:49:520:49:56

six two-beds at £650 per month,

0:49:560:50:00

and the biggest flat at £725 per month.

0:50:000:50:03

Across all the flats, that would mean an income of £6,600 per month,

0:50:040:50:09

or a yield of nearly 7.5%.

0:50:090:50:12

So how do Tracy and Martin feel

0:50:140:50:16

the project has gone after all this time?

0:50:160:50:20

Well, I'm really pleased with the outcome.

0:50:200:50:22

I'm really pleased with the finished product.

0:50:220:50:24

The fact that they were rented out immediately,

0:50:240:50:27

the moment we advertised them,

0:50:270:50:28

including the two that aren't quite finished yet.

0:50:280:50:31

Martin and Tracy have done well on this project,

0:50:310:50:34

even though it did take them three years to complete,

0:50:340:50:37

but the world of property development is an uncertain one.

0:50:370:50:41

So would they buy at auction again?

0:50:410:50:43

We may be now quite close to the top.

0:50:450:50:47

It's difficult to know where property prices are going to go.

0:50:470:50:50

There's been pressure on the buy-to-let market.

0:50:500:50:52

As a result of that, it may be that we are close

0:50:520:50:55

to the top of the cycle.

0:50:550:50:57

And if we are, then it may not be the best time to buy at auction.

0:50:570:51:00

I hope that's not the case, Martin.

0:51:000:51:02

We'd love to have you both back on the show again soon.

0:51:020:51:06

# California... #

0:51:090:51:11

We're heading back to California -

0:51:130:51:15

California, Derby, that is -

0:51:150:51:17

where I saw a classic two-up two-down

0:51:170:51:19

that was very tired and dated,

0:51:190:51:21

but it did have an upstairs bathroom.

0:51:210:51:23

So, good news, right?

0:51:230:51:26

Well, not quite, because you have to access it through the second bedroom.

0:51:270:51:32

So that isn't ideal, is it?

0:51:320:51:34

What also wasn't ideal was this large tree in the back garden,

0:51:340:51:39

taking up most of the outside space

0:51:390:51:41

and a shed with a potentially dangerous asbestos roof,

0:51:410:51:45

which would need to be removed by professionals.

0:51:450:51:48

Someone who wasn't put off was Paul,

0:51:480:51:50

who spent £66,500 on this at auction.

0:51:500:51:54

He's an electrician by trade and that certainly sparked my interest

0:51:540:51:58

on how he was going to add

0:51:580:51:59

a little bit of Californian sunshine to this house.

0:51:590:52:02

It needs a new bathroom, kitchen, windows,

0:52:020:52:07

general decorating everywhere.

0:52:070:52:09

Obviously it needs rewiring.

0:52:090:52:11

So pretty much the main things you'd expect from modernising.

0:52:110:52:15

Any plans to sort of change the internal layout at all?

0:52:150:52:19

Yes, I am. In the upstairs bedroom,

0:52:190:52:20

currently you have to walk through the bedroom to get to the bathroom.

0:52:200:52:24

Erect a corridor in there.

0:52:240:52:25

It will make the bedroom slightly smaller, but it's more practical.

0:52:250:52:30

Paul thought he would be done in three months,

0:52:300:52:32

but it's now been six months, so how has he got on?

0:52:320:52:35

New doors and windows are a welcome sign,

0:52:390:52:41

but inside, has Paul managed to sort out that upstairs layout?

0:52:410:52:45

# I've found a new way

0:52:460:52:48

# I've found a new way... #

0:52:480:52:51

He has indeed.

0:52:510:52:52

This corridor is a new way to a fresh and reasonably sized bathroom.

0:52:520:52:56

# I've found a new way, baby! #

0:52:580:53:01

Yes, it is at the expense of some space in the second bedroom,

0:53:010:53:04

but I think it's a sacrifice worth making.

0:53:040:53:06

Downstairs in the living room,

0:53:080:53:10

things were even worse than they seemed on the surface.

0:53:100:53:13

Once Paul pulled up the old carpets,

0:53:130:53:15

he discovered that the floorboards were rotten

0:53:150:53:17

and that rising damp was the cause.

0:53:170:53:20

So, a full damp-proof course and new floorboards were required here.

0:53:200:53:25

The changes in the kitchen are also pretty impressive.

0:53:260:53:29

The doorway was widened,

0:53:340:53:35

and this really helps make the space feel much more open and bright.

0:53:350:53:39

And, as you can probably tell,

0:53:410:53:43

that rotten old lean-to is, thankfully, gone.

0:53:430:53:46

Out here, the issues were a big tree and that shed with an asbestos roof,

0:53:460:53:51

which are always a potential hazard if in disrepair.

0:53:510:53:54

Paul got a specialist contractor in to take the shed away

0:53:560:54:00

and, as planned, he has trimmed the tree,

0:54:000:54:03

so there's more space and light in the garden.

0:54:030:54:05

I'd still keep my eye open

0:54:050:54:07

for any damage being caused to paths and drains,

0:54:070:54:11

but this is a vast improvement.

0:54:110:54:13

So much work has happened here,

0:54:130:54:15

and Paul had hoped to get it all done for £10,000.

0:54:150:54:18

Has he managed to keep to that budget?

0:54:180:54:20

I've spent £10,500.

0:54:200:54:23

In total. But that's obviously with doing most of the work myself.

0:54:230:54:28

I basically worked evenings and weekends

0:54:280:54:32

in order to get it complete.

0:54:320:54:35

I've enjoyed doing the work.

0:54:350:54:37

I find it a challenge.

0:54:370:54:39

Doing something other than electrical work is quite refreshing.

0:54:390:54:44

Much like the rest of the house, then,

0:54:440:54:46

every surface has been refreshed all right.

0:54:460:54:49

It may have taken Paul six months

0:54:490:54:50

rather than the three he had planned,

0:54:500:54:53

but he has had to do a lot more than he first thought.

0:54:530:54:56

The biggest challenge was we had to replace all the plaster

0:54:580:55:02

on all the walls, upstairs and downstairs.

0:55:020:55:05

While I was stripping the wallpaper,

0:55:050:55:08

large chunks of plaster were coming off the wall,

0:55:080:55:12

so we knew that we had to remove it all.

0:55:120:55:14

I'm pleased with the finish.

0:55:140:55:17

It's taken a lot of hard work but I think it's all worth it in the end.

0:55:180:55:22

Well, Paul really has got a lot out of this project,

0:55:240:55:27

but has it been worth it financially?

0:55:270:55:29

Will two property experts we ask along

0:55:290:55:31

be impressed by Paul's hard work?

0:55:310:55:33

First an agent from the auctioneers who sold it.

0:55:330:55:36

My thoughts on the property, coming back today,

0:55:370:55:40

are that an excellent job's been made.

0:55:400:55:42

I think it's great, the way that it's presented.

0:55:420:55:44

Modern kitchen, modern bathroom.

0:55:440:55:46

It's truly wonderful throughout.

0:55:460:55:48

The standard of finish, I've had a look round and it is nicely done.

0:55:480:55:52

Neutral colours, attention to detail, the finish is good.

0:55:520:55:56

And, yeah, prime property.

0:55:560:55:58

So, there you are, Paul. Nice feedback on all your efforts.

0:56:000:56:03

And what about those layout changes?

0:56:030:56:05

I think the new layout changes upstairs are exactly what was needed -

0:56:070:56:11

to create the passage through to the bathroom,

0:56:110:56:13

without having to go through the second bedroom,

0:56:130:56:16

is really what people are looking for, for modern occupation.

0:56:160:56:19

Paul plans to sell the house on to fund his next project,

0:56:190:56:23

and he said he was hoping to make at least ten grand profit.

0:56:230:56:26

So, has he?

0:56:260:56:27

He bought the two-bedroom house for £66,500

0:56:270:56:30

and has spent £10,500, a total of £77,000.

0:56:300:56:34

So what could it sell for?

0:56:340:56:36

I think, with how the property's been done up,

0:56:380:56:40

we would look to achieve a price in the region of

0:56:400:56:44

between £95,000 and £100,000.

0:56:440:56:48

On the resale market, in its current condition,

0:56:480:56:51

I would anticipate a sale being achieved of somewhere

0:56:510:56:53

in the region of £100,000.

0:56:530:56:55

Wow! It's taken six months hard graft,

0:56:550:56:57

but he could potentially realise a profit of £25,000,

0:56:570:57:01

before taxes and expenses.

0:57:010:57:03

I'm quite pleased with that.

0:57:050:57:07

That's sort of what I was looking to achieve.

0:57:070:57:10

So it's round about the figure I thought it would be worth anyway.

0:57:100:57:13

I'd like to buy another property to do it up.

0:57:130:57:17

I've really enjoyed this project and I'd like to do another one.

0:57:170:57:21

This hasn't exactly been an easy project,

0:57:210:57:23

and Paul faced some unexpected hassles,

0:57:230:57:25

so when he comes to buy that next property,

0:57:250:57:27

what lessons will he take from this one before

0:57:270:57:30

sticking his hand up at auction?

0:57:300:57:32

I'd just check all the walls and floors

0:57:340:57:39

for rot and damp.

0:57:390:57:42

I'd be a little bit more thorough in looking at them first.

0:57:420:57:46

Did today's buyers inspire you?

0:57:490:57:52

Could you take on a project of your own?

0:57:520:57:54

Well, there's nothing wrong with being an armchair expert instead.

0:57:540:57:57

Yes, and we'll always bring those stories to you,

0:57:570:58:00

whatever your attitude is, here on Homes Under The Hammer.

0:58:000:58:03

-Goodbye for now.

-Goodbye.

0:58:030:58:05

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