0:00:02 > 0:00:03You never know what you'll discover
0:00:03 > 0:00:06in the pages of an auction catalogue.
0:00:06 > 0:00:11Yeah, it could be a tiny terrace, a super semi or a majestic mansion.
0:00:11 > 0:00:14One thing for sure, they're all available under the hammer!
0:00:39 > 0:00:44Now, viewing the property before you bid on it is the developer's must.
0:00:44 > 0:00:46It's the only way of really knowing what you're buying.
0:00:46 > 0:00:50And you must make sure you get a survey done first because
0:00:50 > 0:00:53you never know what's lurking behind that old plaster.
0:00:53 > 0:00:56Here are the properties that we have for you today.
0:00:57 > 0:01:03You might need a magic wand in this London property because it hides some shocking secrets.
0:01:03 > 0:01:07If you weren't expecting it, it's a nasty thing to find.
0:01:07 > 0:01:10There's a Southampton semi with big rooms,
0:01:10 > 0:01:11but unwelcome visitors.
0:01:11 > 0:01:15One thing I've noticed is that it's riddled with woodworm.
0:01:15 > 0:01:16It is everywhere.
0:01:16 > 0:01:23And you don't need chips with everything at this property in South Wales.
0:01:23 > 0:01:24You could open it as something else,
0:01:24 > 0:01:27maybe a sandwich bar or a card shop or a gift shop.
0:01:29 > 0:01:31These properties went to auction, and we'll find out
0:01:31 > 0:01:35who bought them, and what they paid when they went under the hammer.
0:01:35 > 0:01:37Yours, sir, right at the back.
0:01:41 > 0:01:45I'm in Fulham, west London. A very sought after area.
0:01:45 > 0:01:48It's hard to imagine that 100 years ago
0:01:48 > 0:01:51it was largely occupied by workers at factories
0:01:51 > 0:01:53on the nearby River Thames,
0:01:53 > 0:01:56because today, it's an established haunt of the smart and the well heeled.
0:02:01 > 0:02:05This is Harwood Terrace, Fulham Broadway tube is 10 minutes' walk away,
0:02:05 > 0:02:08the vibrant King's Road couldn't be much closer.
0:02:08 > 0:02:11So this is very desirable London.
0:02:11 > 0:02:14Up for auction was a four-bedroomed mid-terrace.
0:02:14 > 0:02:18Now, if I told you that next door sold for over 700,000
0:02:18 > 0:02:19a couple of years ago,
0:02:19 > 0:02:21and that when things were looking good,
0:02:21 > 0:02:24similar properties were selling for over 800,
0:02:24 > 0:02:29then you might be very interested to hear that this had a guide price of 470.
0:02:29 > 0:02:34Very interesting, and music to my years, in fact.
0:02:35 > 0:02:39What isn't so melodic, though, is the fact that there's a busy road outside
0:02:39 > 0:02:43and it seems to be a sort of unofficial cut through.
0:02:43 > 0:02:47Traffic calming measures have done little to stop the constant flow,
0:02:47 > 0:02:51certainly not the best way to calm my nerves.
0:02:51 > 0:02:53The traffic from that road's a bit of an issue.
0:02:53 > 0:02:58The house itself, well, you might be hoping for period features.
0:02:58 > 0:03:02I happen to know this was formerly an HMO house of multiple occupation,
0:03:02 > 0:03:06and it looks to me like a lot of the character has been stripped out.
0:03:06 > 0:03:08What is interesting, when you come in here,
0:03:08 > 0:03:13somebody has already started work renovating this place.
0:03:13 > 0:03:17I guess in the property world, time is money, so fair enough.
0:03:17 > 0:03:21It doesn't look too bad in general, nice magnolia walls and coming into
0:03:21 > 0:03:26the kitchen, the units aren't super high quality, but they would do.
0:03:26 > 0:03:29If you're embarking on a restoration,
0:03:29 > 0:03:32in this kind of house in this area, maybe you'd put something nicer in.
0:03:32 > 0:03:33But all in all, it's not bad.
0:03:33 > 0:03:36You've just got to dodge the building supplies!
0:03:44 > 0:03:47The front room is a reasonable size, as is the kitchen.
0:03:47 > 0:03:53But none of the rooms are grand or impressive, just bland and functional.
0:03:53 > 0:03:55Past a large downstairs shower room,
0:03:55 > 0:03:58there's a further room at the back with a sink in it.
0:03:58 > 0:04:01I imagine this was once a bedroom.
0:04:05 > 0:04:09Upstairs, there's another bathroom which looks more promising.
0:04:09 > 0:04:13But it's at the front of the house where the work has really started.
0:04:13 > 0:04:17I'm all for open-plan, but this is taking it a bit far!
0:04:21 > 0:04:24Well, someone has been having fun with a sledgehammer!
0:04:24 > 0:04:28Just shows what you can do with determination in a short amount of time.
0:04:28 > 0:04:30Let's talk about what this house is.
0:04:30 > 0:04:33It's an HMO - a house of multiple occupation.
0:04:33 > 0:04:36Five let-able rooms, four up here and one downstairs.
0:04:36 > 0:04:41Now that is quite an effective and cash efficient way to go.
0:04:41 > 0:04:45It's not licensable, cos it's only two floors, so it could generate quite an income.
0:04:45 > 0:04:47Your other options, convert it into flats,
0:04:47 > 0:04:49that's probably my number one option.
0:04:49 > 0:04:51Or a single family home.
0:04:51 > 0:04:52That...
0:04:52 > 0:04:55Mmm, it's about talking to the estate agents,
0:04:55 > 0:04:59find out what there is a market for and make your decision based on that.
0:05:00 > 0:05:03But before you go off and do that, I've made the discovery
0:05:03 > 0:05:08in the walled back garden that rings alarm bells.
0:05:08 > 0:05:13Behind this scaffolding tower, the wall is being worked on in two places.
0:05:15 > 0:05:18Inside on the ground floor, in exactly the same spot,
0:05:18 > 0:05:21the plaster's been ripped off to expose the brickwork.
0:05:21 > 0:05:26And upstairs on the first floor, the bricks have also been exposed.
0:05:26 > 0:05:27Now, this is a bit scary.
0:05:27 > 0:05:31I don't mean to say that the ceiling is going to fall in on me.
0:05:31 > 0:05:34But it's quite interesting to see the property bared like this.
0:05:34 > 0:05:38As you can see, there is a really nasty crack here.
0:05:38 > 0:05:41That's been caused by guttering on the outside leaking.
0:05:41 > 0:05:45It's obviously had some real damaging effects over time.
0:05:45 > 0:05:49I'm also told that the property was un-mortgageable in this state,
0:05:49 > 0:05:53so whoever's bought it has had to do some fairly urgent remedial work.
0:05:53 > 0:05:56Basically, what they've done, is they put these wall ties
0:05:56 > 0:06:00into the wall, stretching across where the crack is, pointing that in.
0:06:00 > 0:06:04If that's done properly then you will be able to get a mortgage.
0:06:04 > 0:06:07But obviously, if you weren't expecting it,
0:06:07 > 0:06:08it's a nasty thing to find!
0:06:08 > 0:06:14That certainly explains why the new owner was keen to start work.
0:06:14 > 0:06:16It shows that if you buy at auction
0:06:16 > 0:06:19and you are worried about the property's condition,
0:06:19 > 0:06:20then get a survey done.
0:06:20 > 0:06:25That low guide price certainly reflects the problems here.
0:06:25 > 0:06:28I've asked an estate agent to have a look.
0:06:28 > 0:06:30A lot of issues worry me. What does he think of it?
0:06:32 > 0:06:36My first impression was it's light, it's bright,
0:06:36 > 0:06:37it's well proportioned,
0:06:37 > 0:06:38it's got a really good garden.
0:06:38 > 0:06:41I was very impressed with the property.
0:06:41 > 0:06:44Providing the structural issues can be resolved,
0:06:44 > 0:06:48should the new owner keep the house as a multiple occupancy?
0:06:48 > 0:06:50At the moment, we're in a family area
0:06:50 > 0:06:53and I believe that this property would be best as a family house
0:06:53 > 0:06:55or as two two-bedroom flats.
0:06:55 > 0:06:59What's the potential value for either of those options?
0:06:59 > 0:07:02To renovate this back into a single dwelling,
0:07:02 > 0:07:05you'd be looking in the region of £750,000.
0:07:05 > 0:07:09If you were to convert it into two flats, the value would be similar.
0:07:09 > 0:07:10You'd be looking in the region of
0:07:10 > 0:07:13£350,000 per unit for each flat.
0:07:13 > 0:07:16And the income any investor could generate?
0:07:16 > 0:07:19If you were to rent it as two flats, I'd be looking at
0:07:19 > 0:07:21£320 per week for each flat.
0:07:21 > 0:07:24Well, the back walls have already had some attention,
0:07:24 > 0:07:25and the stud ones are now history.
0:07:25 > 0:07:28But how will this place end up?
0:07:30 > 0:07:35Well, it's a house with lots of options in a very desirable area.
0:07:35 > 0:07:39But as you can see, somebody's already started the work.
0:07:39 > 0:07:43Let's see who the eager beaver was who bought it at auction.
0:07:43 > 0:07:45So we move on to lot 38.
0:07:45 > 0:07:5132 Harwood Terrace, Fulham, SW6.
0:07:52 > 0:07:55Where do I kick off?
0:07:55 > 0:07:59400. I'm not going to go below four. At 400.
0:07:59 > 0:08:03Thank you, 400. 405 anywhere?
0:08:03 > 0:08:05400 on my left. 405?
0:08:05 > 0:08:09405. 410?
0:08:09 > 0:08:10410.
0:08:10 > 0:08:14415. 420.
0:08:14 > 0:08:17425. 430.
0:08:17 > 0:08:21435. 440.
0:08:21 > 0:08:25445. 450.
0:08:25 > 0:08:29455. 460.
0:08:29 > 0:08:33465. 470.
0:08:33 > 0:08:38470. 475. 480?
0:08:38 > 0:08:42475. 476.
0:08:42 > 0:08:45476. Another 1,000. It's going.
0:08:45 > 0:08:49It's a good buy. 475. Anyone else?
0:08:49 > 0:08:53At 475 first time, second time.
0:08:53 > 0:08:56Third and last time. Are you all done?
0:08:56 > 0:08:58475. Well done.
0:08:58 > 0:09:01The winning bidder, who paid £475,000,
0:09:01 > 0:09:06just £5,000 over the guide price, was this man.
0:09:06 > 0:09:09He's a property developer and landlord, but has
0:09:09 > 0:09:13bought this as his first joint investment with a business partner.
0:09:13 > 0:09:18He used to deal in wholesale womenswear and switched careers about 14 years ago.
0:09:18 > 0:09:21I met him at the house to find out
0:09:21 > 0:09:26if it's going to be an haute couture classic or more high street fashion.
0:09:26 > 0:09:29- Lovely to meet you. - Nice to meet you.
0:09:29 > 0:09:32- Congratulations. You're a bit eager!- Yes!
0:09:32 > 0:09:33You've started work already?
0:09:33 > 0:09:36- Yes.- When did you complete on the property?
0:09:36 > 0:09:38Last week.
0:09:38 > 0:09:40So why the hurry?
0:09:40 > 0:09:41We wanted to get a mortgage,
0:09:41 > 0:09:46and they said there is a small crack has to be sorted out before releasing
0:09:46 > 0:09:49the thing, so we had to sort out the problem.
0:09:49 > 0:09:52They've insisted that you do the work upstairs?
0:09:52 > 0:09:57Fortunately, the structural engineers says it's not major
0:09:57 > 0:10:03and he would like to put a board there to sort it and replace some mix.
0:10:03 > 0:10:07- Right, so that's the first job that you're doing?- Yes.
0:10:07 > 0:10:09Did you know about this before you bought it?
0:10:09 > 0:10:12No. I didn't. It was a mistake.
0:10:12 > 0:10:17Not a mistake, because we did not see the property and we did not
0:10:17 > 0:10:21come to the auction to buy this property.
0:10:21 > 0:10:23- We went to buy something else.- What happened?
0:10:23 > 0:10:28Then we thought that this location and the price was good.
0:10:28 > 0:10:31So we decided to go for this property.
0:10:31 > 0:10:35And then you discovered it had a crack, which made it un-mortgageable?
0:10:35 > 0:10:39- That's right, yeah.- At what point did you decide you wanted to buy it?
0:10:39 > 0:10:43Believe me, when they showed me the photo in the auction room,
0:10:43 > 0:10:48when I saw the thing, I thought, "That's beautiful."
0:10:48 > 0:10:50- So you decided as the bidding started?- Exactly.
0:10:50 > 0:10:52Did you see the legal pack?
0:10:52 > 0:10:58- No. I didn't see the legal pack, no. - You're a gambling man, are you?
0:10:58 > 0:11:03I'm not a gambler at all! But on this occasion, yes, I did, actually!
0:11:03 > 0:11:05I did that, and I would not recommend anybody.
0:11:05 > 0:11:09I have purchased property from auctions, I have been in this game,
0:11:09 > 0:11:13and even if it comes to the worst, we would have sorted the problem
0:11:13 > 0:11:17before selling or putting it back on the market again.
0:11:17 > 0:11:20That's exactly what you shouldn't do at an auction -
0:11:20 > 0:11:24bid nearly half-a-million-quid on a property that you've not seen,
0:11:24 > 0:11:27only to discover you're unlikely to get finance
0:11:27 > 0:11:30without doing major expensive work.
0:11:32 > 0:11:38Luckily, it seems this work should be enough to satisfy the mortgage company.
0:11:38 > 0:11:40But if he'd had to underpin the house,
0:11:40 > 0:11:43the cost would have been much greater.
0:11:43 > 0:11:46Tell me what you're going to do to the property inside?
0:11:46 > 0:11:51- We will make a through lounge, we're going to knock this down. - A through lounge?
0:11:51 > 0:11:55We are going to move the kitchen to the back room there.
0:11:55 > 0:11:58It's going to be a kitchen diner.
0:11:58 > 0:12:00And up the stairs, we have knocked the wall down
0:12:00 > 0:12:03and it's going to be three double bedrooms upstairs.
0:12:03 > 0:12:07- Is the idea to convert it back into one house?- Yes.
0:12:07 > 0:12:10Why have you chosen to do that, rather than do flats?
0:12:10 > 0:12:15I had spoken to local estate agents
0:12:15 > 0:12:20and we asked, what would be the best way to sell in this area?
0:12:20 > 0:12:22They said, if you bring it back,
0:12:22 > 0:12:27make a through lounge and move the kitchen, it will be really sellable.
0:12:27 > 0:12:30How much do you think it will cost to do the work?
0:12:30 > 0:12:32We have estimated between £25 - £28,000.
0:12:32 > 0:12:36So for around half a million, a little bit over half a million,
0:12:36 > 0:12:38you're going to sort this place out?
0:12:38 > 0:12:41Hopefully, yes.
0:12:41 > 0:12:43So his gamble could well have paid off.
0:12:43 > 0:12:45An estate agent valued the property
0:12:45 > 0:12:50at about 750,000, once restored as a family home.
0:12:50 > 0:12:54So even at 650,000, he could make a potential
0:12:54 > 0:12:57£100,000 gross profit.
0:13:00 > 0:13:05Well, he took a huge gamble buying this place without seeing it first.
0:13:05 > 0:13:09And for somebody without the cash, discovering that crack at the 11th
0:13:09 > 0:13:12hour could have been a major financial disaster.
0:13:12 > 0:13:14As it is, it looks like he's got away with it.
0:13:14 > 0:13:19It will be interesting to see how he converts this back into one single dwelling.
0:13:19 > 0:13:22You can find out how it looks later in the show.
0:13:25 > 0:13:28I'm in the large city of Southampton in Hampshire.
0:13:28 > 0:13:32It's one of the biggest commercial ports in Europe
0:13:32 > 0:13:35and also provides a safe harbour for many cruise ships.
0:13:35 > 0:13:39Indeed, the Titanic started its fateful voyage here.
0:13:39 > 0:13:46So will the next property be a disaster waiting to happen, or plain sailing?
0:13:46 > 0:13:51This is Albany Road in Fremantle, which is a suburb of Southampton.
0:13:51 > 0:13:54It's about a mile from the city centre.
0:13:54 > 0:13:58I'm here to see this fairly ordinary looking Victorian end of terrace.
0:13:58 > 0:14:03But, this property already has planning permission
0:14:03 > 0:14:07to convert into three self-contained flats.
0:14:07 > 0:14:08That's quite exciting!
0:14:08 > 0:14:14It had a guide price on auction day of £145 - £150,000.
0:14:14 > 0:14:15Pretty reasonable,
0:14:15 > 0:14:18when you bear in mind that this small two-bedroom house
0:14:18 > 0:14:22has the potential to become three properties.
0:14:22 > 0:14:26But there's obviously some major rebuilding work which needs to be done first.
0:14:26 > 0:14:29Even though this house is being knocked around,
0:14:29 > 0:14:32it's still worth taking a look at the original footprint.
0:14:32 > 0:14:35We've got a reception room through there.
0:14:35 > 0:14:37You can see the house is tired and dated,
0:14:37 > 0:14:41old-fashioned wallpaper, polystyrene tiles everywhere.
0:14:41 > 0:14:45A good-sized second reception room, lots of under stairs storage
0:14:45 > 0:14:48and at the back of the property, the kitchen.
0:14:48 > 0:14:52You can see it's tired and dated, and completely needs an overhaul.
0:14:52 > 0:14:58Even if this house wasn't changing, it would need a complete programme of refurbishment.
0:15:00 > 0:15:04Upstairs there are two bedrooms and you have to access the bathroom through one of them.
0:15:04 > 0:15:11That's not ideal, but it's all set to change and this floor will become a two bedroom apartment.
0:15:14 > 0:15:18I've got the plans here that have already been passed by the local council.
0:15:18 > 0:15:22Basically, this whole house will be extended to the side here.
0:15:22 > 0:15:26The building line will still be here where the original property is,
0:15:26 > 0:15:30but the great thing is there will be parking at the rear,
0:15:30 > 0:15:33and that is because there's road access there.
0:15:33 > 0:15:35The plans themselves...
0:15:35 > 0:15:38You've got two one-bedroom flats on the ground floor, you can see that.
0:15:38 > 0:15:40Upstairs, there's a two-bedroom flat.
0:15:40 > 0:15:47What I like about these is that each flat has their own independent entrance.
0:15:47 > 0:15:48I think that's a bonus.
0:15:48 > 0:15:52It all seems fairly straightforward, but there is one issue with this house,
0:15:52 > 0:15:56or should I say lots of little, wriggly issues?
0:16:00 > 0:16:02Whilst walking around this house,
0:16:02 > 0:16:05one thing I've noticed is that it's riddled with woodworm.
0:16:05 > 0:16:08It is everywhere. You can tell, just have a look at the holes here.
0:16:08 > 0:16:13You can see the woodworm is still active, because when you tap this,
0:16:13 > 0:16:15sawdust comes out.
0:16:15 > 0:16:18You can remedy this easily with a chemical treatment which
0:16:18 > 0:16:20you can spray or paint on,
0:16:20 > 0:16:23but if it's really bad, which I think this is,
0:16:23 > 0:16:26you can inject a paste into it.
0:16:26 > 0:16:30But let's face it, this house is going to be ripped apart soon,
0:16:30 > 0:16:32and all this wormy wood will be history.
0:16:36 > 0:16:40I've invited a local estate agent to come and look at this house
0:16:40 > 0:16:43that went to auction guided at 145 - 150,000.
0:16:43 > 0:16:49It had planning permission to convert it into three self-contained flats.
0:16:51 > 0:16:56From looking round the property, in its current condition it's in a pretty poor state.
0:16:56 > 0:16:57I've looked at the plans,
0:16:57 > 0:17:01the one-bedroomed flats aren't huge, they aren't massive square footage,
0:17:01 > 0:17:07but what they do rely on is no internal corridors so they make very good use of space.
0:17:07 > 0:17:11Permission has been granted to convert the property into flats,
0:17:11 > 0:17:14but is there a demand for those in the area?
0:17:16 > 0:17:18The market round here at the moment,
0:17:18 > 0:17:21again, with the rest of the market, things are struggling to sell.
0:17:21 > 0:17:25This is more of a long-term project, something you'd hold on to
0:17:25 > 0:17:29and let the property out for it to produce this income for you.
0:17:29 > 0:17:30It's a long-term investment.
0:17:30 > 0:17:33Because of its location, it's popular for rental.
0:17:33 > 0:17:37If you're looking to resell, it probably wouldn't work.
0:17:37 > 0:17:42The flats would be too small and it wouldn't make a very good project.
0:17:42 > 0:17:45It sounds like this is destined to be a rental machine,
0:17:45 > 0:17:47generating money for the new owner.
0:17:47 > 0:17:49What sort of income could it achieve?
0:17:51 > 0:17:53For one-bedroomed flats such as these,
0:17:53 > 0:17:56you're probably going to look to get around 450.
0:17:56 > 0:17:58For the two-bedroomed flat,
0:17:58 > 0:18:01you'll probably look to get about 550 per calendar month.
0:18:03 > 0:18:06Once the three flat conversion is finished,
0:18:06 > 0:18:08how much could the flats sell for?
0:18:10 > 0:18:14If you had to sell the property, you'd probably sell it as it is in one lump sum.
0:18:14 > 0:18:17But if they're broken into individual units,
0:18:17 > 0:18:20you're looking at around 80,000 for the one-bedroomed flats
0:18:20 > 0:18:24and around 125,000 for the two-bedroomed flat.
0:18:24 > 0:18:28Of course, the profit any developer could realise would depend on the cost of converting it.
0:18:28 > 0:18:31That's still unknown, but what is known
0:18:31 > 0:18:36is that the permission exists to convert the house into three flats.
0:18:36 > 0:18:40This house is basically going to be taken apart at the seams.
0:18:40 > 0:18:43The side, the rear, the roof will all be rebuilt.
0:18:43 > 0:18:48The fact it's already got full planning permission means the new owner can get to work straightaway.
0:18:48 > 0:18:51As they say in this business, time is money.
0:18:51 > 0:18:56But this is a major project, and not one for the inexperienced.
0:18:56 > 0:19:00So, who bought it? Let's find out when we head to auction.
0:19:00 > 0:19:02Moving to lot number six in your catalogue.
0:19:02 > 0:19:0747 Albeny Road in Fremantle, Southampton.
0:19:07 > 0:19:10Somebody get me underway at just 130,000.
0:19:11 > 0:19:15I do have 130, thank you.
0:19:15 > 0:19:17130,000 just to the rear of the signs.
0:19:17 > 0:19:22131, 132. 132 is bid by the sign.
0:19:22 > 0:19:26133 is bid. 134. Thank you.
0:19:26 > 0:19:31135 bid, sat in the centre of the aisle. 136 I have.
0:19:31 > 0:19:34Now I need 137 from you, sir. Are you shaking your head at me?
0:19:34 > 0:19:37You are? OK. 137, a new bidder on the left-hand side.
0:19:37 > 0:19:41138? 138 is bid.
0:19:41 > 0:19:45Gentlemen seated at 139.
0:19:45 > 0:19:50140? 140 I've got. 141? 141 I have got.
0:19:50 > 0:19:53142 the gentleman goes to.
0:19:53 > 0:19:57143? No? Half?
0:19:57 > 0:19:58142 and a half?
0:19:58 > 0:20:01142 and a half I have got.
0:20:01 > 0:20:03I need somebody at 143.
0:20:03 > 0:20:05Gentlemen is saying "yes" at 143.
0:20:05 > 0:20:09Half again, sir? Might do the job. No?
0:20:09 > 0:20:13Give you a quarter? 143,250.
0:20:13 > 0:20:17I need 143 and a half. Gentlemen is shaking his head at me.
0:20:17 > 0:20:20143,250 I have.
0:20:20 > 0:20:21Are you done?
0:20:21 > 0:20:24143,250 for the first time.
0:20:24 > 0:20:29143,250 for the second.
0:20:29 > 0:20:31Third and final time.
0:20:31 > 0:20:33Well done.
0:20:35 > 0:20:39That winning bid of 143,250
0:20:39 > 0:20:43was made by local Southampton-based developer Rana.
0:20:43 > 0:20:48Originally, an electronics engineer, Rana's been buying property to let
0:20:48 > 0:20:52for over 20 years and now works full-time as a developer.
0:20:54 > 0:20:58I met him at his latest purchase to hear about the plans.
0:20:58 > 0:20:59Congratulations.
0:20:59 > 0:21:03- Thank you.- Amazingly you paid under the guide price for this at auction.
0:21:03 > 0:21:05- Yes.- Had you set a limit?
0:21:05 > 0:21:07Yes, I did.
0:21:07 > 0:21:09I must admit I had a limit of 140 in my mind,
0:21:09 > 0:21:13because that's what I offered prior to the auction.
0:21:13 > 0:21:16They didn't accept, so when I was at the auction
0:21:16 > 0:21:20I had a feeling that there was not that much interest
0:21:20 > 0:21:22and it was going to go below the guide.
0:21:22 > 0:21:25I offered it to what I paid.
0:21:25 > 0:21:28Why did this property appeal to you?
0:21:28 > 0:21:34I had a similar sort of property to this one a couple of roads down,
0:21:34 > 0:21:38and we converted that into three units.
0:21:38 > 0:21:43This one already had the planning, and that was a plus point.
0:21:43 > 0:21:46Do you think this really suits flats?
0:21:46 > 0:21:50Yeah, I've thought about it before buying
0:21:50 > 0:21:54and I think the plot size is OK.
0:21:54 > 0:21:57It meets all of the amenity space and that sort of thing.
0:21:57 > 0:22:01But as a house it wouldn't return the money.
0:22:01 > 0:22:03As flats, I think there's a return on it.
0:22:03 > 0:22:07I've had properties here for the last 25 years,
0:22:07 > 0:22:10so I do know the area quite well.
0:22:10 > 0:22:12So it's right in saying you're a landlord?
0:22:12 > 0:22:17Yes, yes. Landlord, and I develop properties as well.
0:22:17 > 0:22:21- How long have you been developing property? - About five or six years ago.
0:22:21 > 0:22:23Before then I was working and I didn't have the time,
0:22:23 > 0:22:28but in the last six years we've done about five, six projects.
0:22:28 > 0:22:31Now that Rana's a full-time property developer,
0:22:31 > 0:22:34he tends to work on his own, project managing developments.
0:22:34 > 0:22:39He does this with a team of workmen, and his wife deals with the paperwork.
0:22:39 > 0:22:42I always feel sad when I walk into a property like this,
0:22:42 > 0:22:45it's got a history, it's had a great life
0:22:45 > 0:22:47and you will be ripping the guts out of it.
0:22:47 > 0:22:49So that will be no longer.
0:22:49 > 0:22:53Yes, but the outer parts of the building
0:22:53 > 0:22:57will retain the character of the property,
0:22:57 > 0:23:00although the inside will be a modern type of building.
0:23:00 > 0:23:03Having dealt with so many tenants, we know what they're looking for.
0:23:03 > 0:23:06We try to build that into each of the flats,
0:23:06 > 0:23:10storage, good-sized lounge, bedroom,
0:23:10 > 0:23:12good bathroom fittings, that sort of thing.
0:23:12 > 0:23:15I tend to go overboard with putting expensive fittings
0:23:15 > 0:23:20and all that sort of thing, but on this one I'll try to keep tight as possible.
0:23:20 > 0:23:24He won't stick rigidly to the plans that have already been passed,
0:23:24 > 0:23:26he has some alterations in mind.
0:23:26 > 0:23:29Here we are with some new, exciting plans.
0:23:29 > 0:23:32What was it you didn't like about the old plans?
0:23:32 > 0:23:34It was the layout.
0:23:34 > 0:23:37When I looked more closely,
0:23:37 > 0:23:42I thought I might be able to get some more
0:23:42 > 0:23:44square footage out of it.
0:23:44 > 0:23:45We changed the plans,
0:23:45 > 0:23:49putting in for planning to get another bedroom in one of the flats.
0:23:49 > 0:23:53I can see you have just got a small extension at the back,
0:23:53 > 0:23:55- is that purely the extra bedroom?- Yes.
0:23:55 > 0:23:59So now you've gone for two two-bedrooms and one one-bedroom?
0:23:59 > 0:24:02That'll look for a healthier rental return, won't it?
0:24:02 > 0:24:05True, true, and I think the costings won't be that much more
0:24:05 > 0:24:07to add on a small extension.
0:24:07 > 0:24:10How long do you think a project like this will take you?
0:24:10 > 0:24:13You've got a lot of knocking down walls,
0:24:13 > 0:24:15a lot of moving, building out here, haven't you?
0:24:15 > 0:24:20Yes, I have spoken to the team of guys I work with,
0:24:20 > 0:24:23and we're looking at 4-4½ months.
0:24:23 > 0:24:28What sort of budget will you have to play with to get this done?
0:24:28 > 0:24:32At the moment, I'm having a budget of about 60,000.
0:24:32 > 0:24:34If I can stick to it, I'll be very happy.
0:24:35 > 0:24:38Rana's about to submit his revised plans
0:24:38 > 0:24:40and is hoping to start some provisional work
0:24:40 > 0:24:44whilst he waits to hear if they've been accepted.
0:24:44 > 0:24:46Rana is an experienced developer
0:24:46 > 0:24:50and he's bought in an area that he knows well, so that's all good.
0:24:50 > 0:24:53But he's hoping to add square footage to the plans,
0:24:53 > 0:24:56which means going through the whole planning process again.
0:24:56 > 0:25:02That's a long eight-week wait and there's no guarantee he'll even get permission.
0:25:02 > 0:25:06Join me later, to see if he gets the go-ahead.
0:25:06 > 0:25:12Coming up, the property catch of the day could be in South Wales.
0:25:12 > 0:25:16It comes equipped with everything you need for a fish-and-chip shop.
0:25:16 > 0:25:19Back in Southampton,
0:25:19 > 0:25:23there've been some ups and downs converting this property into flats.
0:25:23 > 0:25:26Not seeing the problems ahead, that was a bit of a low point.
0:25:28 > 0:25:32But first, they decided to plan ahead with the refurbishment at this house.
0:25:32 > 0:25:36Whoever comes here, it'll not be a problem in the future.
0:25:40 > 0:25:44Earlier in the programme, Karim and his business partner bought
0:25:44 > 0:25:49this terraced property in fashionable Fulham, London, for £475,000.
0:25:52 > 0:25:55Karim's a full-time property developer,
0:25:55 > 0:25:56but he took a real gamble on this one.
0:25:56 > 0:26:00He hadn't seen inside and soon discovered structural issues
0:26:00 > 0:26:04would need to be fixed before he could get a mortgage.
0:26:04 > 0:26:09The plan was to convert this former house of multiple occupancy back into one family home.
0:26:11 > 0:26:16Now, three months later, the traffic out side is just as busy,
0:26:16 > 0:26:21but will the house have raised the bar in the neighbourhood?
0:26:21 > 0:26:24Well, the shutters that match next door's might help.
0:26:26 > 0:26:30Inside, the wall between the front room and kitchen has been removed,
0:26:30 > 0:26:33creating a large living room.
0:26:37 > 0:26:39At the back, the shower room and bedroom
0:26:39 > 0:26:42have become a lovely, light kitchen.
0:26:49 > 0:26:51Some of that problem brickwork has been repaired
0:26:51 > 0:26:57and replastered downstairs, and up in the bedroom, as well.
0:26:57 > 0:27:02It looks like Karim might have got away with his gamble.
0:27:02 > 0:27:04The brickwork outside has also been re-pointed,
0:27:04 > 0:27:07and the walled garden is nearing completion.
0:27:07 > 0:27:12As you could see, we have transformed the garden.
0:27:12 > 0:27:16It needed a lot of repointing, which we've done here and at the back,
0:27:16 > 0:27:22and also we've changed the floor, and improved the lighting.
0:27:22 > 0:27:24That's what it needed.
0:27:24 > 0:27:28I'm very, happy with the job which has been done.
0:27:28 > 0:27:32Although the cost has just gone up more than what we anticipated,
0:27:32 > 0:27:34but still, I'm very happy.
0:27:34 > 0:27:40Karim had "guess-timated" the refurbishment would cost £25 - £28,000.
0:27:40 > 0:27:43That's good news about the structural issues,
0:27:43 > 0:27:45but with the extra work in the garden
0:27:45 > 0:27:48and the high-spec kitchen and bathroom, has he kept to that budget?
0:27:48 > 0:27:54I think more or less it has cost us about £38,000,
0:27:54 > 0:27:58it was more than what we had estimated at the beginning.
0:27:58 > 0:28:02Because of the location, we thought that if we spent a bit more money,
0:28:02 > 0:28:06at the end of the day, we'll get that money back.
0:28:06 > 0:28:10The property had been divided into five separate rental rooms
0:28:10 > 0:28:14as a house of multiple occupancy, an HMO.
0:28:14 > 0:28:19It's now restored to a family home with three bedrooms upstairs.
0:28:22 > 0:28:28As you could see, there were two small bedrooms here, on the left and on the right.
0:28:28 > 0:28:30What we've done is to knock down the partition
0:28:30 > 0:28:34and make it into a large bedroom, which I think the house needed.
0:28:35 > 0:28:40It's almost finished, with top quality fixtures and fittings,
0:28:40 > 0:28:45and granite work surfaces in the kitchen and bathroom.
0:28:45 > 0:28:50Overall, the job, we tried to do a good job. Whoever comes here,
0:28:50 > 0:28:52they would not have any problem with the building,
0:28:52 > 0:28:58the plumbing, the heating, electrical, we tried to do an excellent job.
0:28:58 > 0:29:01Very, very satisfied when I see something
0:29:01 > 0:29:06nice and you see the transformation of what it was and what it is now.
0:29:06 > 0:29:13The plan is to sell the property, but how much is there left to do, and when will it be finished?
0:29:13 > 0:29:16We're just putting the work top down the stairs and up the stairs,
0:29:16 > 0:29:22and then the only thing left would be a touch up and to lay down the carpet.
0:29:22 > 0:29:25Hopefully, we'll be finished by the end of the week.
0:29:28 > 0:29:30Let's see two how estate agents,
0:29:30 > 0:29:34familiar with the Fulham market, will rate this one.
0:29:39 > 0:29:42My first impressions of the house, it's really good.
0:29:42 > 0:29:44An extremely good finish.
0:29:44 > 0:29:45Clean, good bathrooms, good kitchens.
0:29:45 > 0:29:49My first impressions - it's been finished to a very high standard.
0:29:49 > 0:29:51It's very light and airy throughout.
0:29:51 > 0:29:53Ideal, should sell very easily.
0:29:53 > 0:29:55They've done a good job in the garden.
0:29:55 > 0:29:59It's not a key feature of the location of the house,
0:29:59 > 0:30:02but they've incorporated it, bringing it up to a high standard
0:30:02 > 0:30:04and it'll take that first impression to a good level.
0:30:04 > 0:30:07The negative side to the property is the road outside.
0:30:07 > 0:30:10It's a bit of a cut through for traffic, accessing the King's Road.
0:30:10 > 0:30:15Time to hear how much Karim's refurbishment could feasibly achieve, once completed.
0:30:15 > 0:30:21Remember, he paid £475,000 at auction and has spent £38,000 on it.
0:30:21 > 0:30:25So, about £513,000 in total.
0:30:26 > 0:30:29If I was going to value this to go on the market for sale,
0:30:29 > 0:30:35I would put it on the market for 645, to achieve somewhere in the region of 620, 630.
0:30:35 > 0:30:36Looking at the price of the property,
0:30:36 > 0:30:40I would hazard a guess that it should go to the market at 650,000,
0:30:40 > 0:30:41and should achieve 650,000.
0:30:41 > 0:30:48That represents over £110,000 gross profit, after just 11 weeks.
0:30:48 > 0:30:52Karim must be pretty pleased.
0:30:52 > 0:30:58Yes, I think more realistically, between 650, to 675.
0:30:58 > 0:31:01We've had different agents give different prices.
0:31:01 > 0:31:08In this respect, I think 650, to 675 is a more realistic price.
0:31:08 > 0:31:11Karim is an experienced developer.
0:31:11 > 0:31:17He took a gamble and it paid off for this former house of multiple occupancy.
0:31:17 > 0:31:18If he decides not to sell,
0:31:18 > 0:31:23what rental income could this three-bedroomed property generate?
0:31:23 > 0:31:28For a rental value, I'd value this at £500 per calendar week, £2,200 per month.
0:31:28 > 0:31:32I would expect it to achieve £2,200 per month.
0:31:32 > 0:31:402,200, - 2,500 is more realistic rent for a house of this state.
0:31:41 > 0:31:46But, it could have all turned out so differently.
0:31:46 > 0:31:51It was only luck that the cracked wall could be repaired, a lesson that has been taken on board.
0:31:51 > 0:31:55Definitely, we'll do the same thing again.
0:31:55 > 0:31:59But this time, definitely more vigilance when I go to auction.
0:31:59 > 0:32:04I would not buy without seeing the property.
0:32:13 > 0:32:16If it's the great outdoors you're looking for,
0:32:16 > 0:32:19then Wales must be on any shortlist.
0:32:19 > 0:32:24This is the beautiful valley of the River Neath in South Wales.
0:32:24 > 0:32:27Close by is the town of Resolven,
0:32:27 > 0:32:31where something decidedly fishy is going on.
0:32:31 > 0:32:37It's certainly not in the air. You can't get fresher than around here.
0:32:37 > 0:32:42And while the town of Resolven is a bit off the beaten track,
0:32:42 > 0:32:46the town nestles in the countryside and has good links to the coast.
0:32:48 > 0:32:53So, what was up for auction? Well, I said it was a little bit fishy...
0:32:53 > 0:32:56There it is, it's the old fish and chip shop in Resolven.
0:32:56 > 0:32:59It looks absolutely tiny.
0:33:01 > 0:33:04It's definitely one of the smallest properties
0:33:04 > 0:33:06we've had on the programme,
0:33:06 > 0:33:08but I know there's no place like a home under the hammer,
0:33:08 > 0:33:11so I'll treat it like anywhere else.
0:33:11 > 0:33:15I'll tell you that I've noticed it's got a replacement window and door,
0:33:15 > 0:33:18and that the roof looks in need of attention
0:33:18 > 0:33:20and it's certainly got a lot of kerb appeal.
0:33:27 > 0:33:31But when the chips are down, I'm yet to be convinced
0:33:31 > 0:33:34that it's really worth the guide price of 39,000.
0:33:34 > 0:33:37The real gem with this place is on the inside,
0:33:37 > 0:33:40because it comes fully equipped,
0:33:40 > 0:33:43with everything you could need to run it as a fish and chip shop.
0:33:43 > 0:33:47You've got the fryers, the microwaves, even this extractor.
0:33:47 > 0:33:50It would cost you about £6000 to buy this kind of stuff,
0:33:50 > 0:33:52so that's really great news.
0:33:52 > 0:33:55It certainly helps to justify the guide price.
0:33:55 > 0:33:58Remember, we don't know if any of the stuff works.
0:33:58 > 0:34:03Before a single switch is turned on, it all needs to be checked out.
0:34:03 > 0:34:06Also, a good clean may be in order.
0:34:06 > 0:34:08In fact, the inside isn't much better than the outside,
0:34:08 > 0:34:11and it's gonna need a lot of elbow grease to make it shine.
0:34:11 > 0:34:14# Ye shall have a fishy on a little dishy
0:34:14 > 0:34:18# Ye shall have a salmon when the boat comes in. #
0:34:18 > 0:34:21This is a little different from a normal house auction,
0:34:21 > 0:34:23because you're buying a business.
0:34:23 > 0:34:27That intrinsically has a different value, due to its turnover,
0:34:27 > 0:34:30and what's known in commercial terms as goodwill.
0:34:30 > 0:34:33But in this case, we've hit a bit of a snag.
0:34:35 > 0:34:38There is a bit of a downside. There are no accounts showing
0:34:38 > 0:34:42how well this fish and chip shop did when it was running as a business.
0:34:42 > 0:34:45You could ask around, ask the locals, see if it was popular.
0:34:45 > 0:34:47At the moment, you are slightly blind
0:34:47 > 0:34:49in terms of how profitable it might be.
0:34:49 > 0:34:52You could contemplate opening something else,
0:34:52 > 0:34:54maybe a sandwich bar, or a card shop or gift shop.
0:34:54 > 0:34:58Again, you don't know how well that would do, unless you research.
0:34:58 > 0:35:01Either way, it does the a bit of thinking about
0:35:01 > 0:35:02before you take it on.
0:35:02 > 0:35:06One way not to get yourself caught hook, line and sinker,
0:35:06 > 0:35:08could be to trawl a local estate agent's
0:35:08 > 0:35:10knowledge about the shop,
0:35:10 > 0:35:14especially as he's bought the odd bag or two of chips in the past.
0:35:19 > 0:35:20I used to live in this village.
0:35:20 > 0:35:22I lived here for about 20 years.
0:35:22 > 0:35:26This originally used to be a bookies, a betting shop.
0:35:26 > 0:35:29Obviously, more recently, it turned into a chip shop.
0:35:29 > 0:35:32It was quite a busy little chip shop.
0:35:32 > 0:35:34It's got local pubs and Resolven used to be
0:35:34 > 0:35:36my stomping ground when I was young,
0:35:36 > 0:35:39and this was where I used to come at the end of the night.
0:35:39 > 0:35:41Fond memories, I'm sure.
0:35:41 > 0:35:44It's a good sign that it was such a well-known
0:35:44 > 0:35:46and popular local institution.
0:35:46 > 0:35:48As it was a betting shop, I wonder what the odds are
0:35:48 > 0:35:51that it could re-open as a chippy.
0:35:51 > 0:35:53It's been closed for a while.
0:35:53 > 0:35:56It's got a bit tired, but I think the potential is still there.
0:35:56 > 0:35:59You only have to look at the outside, and look at where it is.
0:35:59 > 0:36:01It's on the main road into the village,
0:36:01 > 0:36:03it's within walking distance of two or three pubs,
0:36:03 > 0:36:05is where the kids tend to hang out,
0:36:05 > 0:36:08and I think there's definitely business to be had here.
0:36:08 > 0:36:13But that doesn't mean it'll be plain sailing if you're thinking
0:36:13 > 0:36:16about buying this with the intention of renting it out.
0:36:18 > 0:36:22Knowing the village, I don't think there's enough revenue to own it,
0:36:22 > 0:36:25rent it, and as the landlord make a profit
0:36:25 > 0:36:27and the person running it make a profit as well.
0:36:27 > 0:36:30So, you need to beware or you could end up
0:36:30 > 0:36:34getting your financial fingers burned in the fat fryer,
0:36:34 > 0:36:36if you're planning to rent this place out.
0:36:36 > 0:36:41Bearing that in mind, was the guide price of £39,000 good value?
0:36:42 > 0:36:47I'd put the value of this at around 15 or 20,000 at the outside.
0:36:47 > 0:36:51Without looking at the equipment, I'd say you're looking at about
0:36:51 > 0:36:545 or 6000 to replace the equipment if it doesn't work.
0:36:54 > 0:36:56If it does, great, but we just don't know.
0:36:56 > 0:36:59Sounds like you could get home from the auction
0:36:59 > 0:37:03with a really sizzling investment, or a soggy bag soaked in vinegar,
0:37:03 > 0:37:05with your chips falling out the bottom.
0:37:07 > 0:37:09What an interesting auction lot.
0:37:09 > 0:37:11Potentially, a business venture.
0:37:11 > 0:37:14You're certainly not buying this for the bricks and mortar.
0:37:14 > 0:37:17Not knowing how it's done in the past, whoever buys it
0:37:17 > 0:37:20really is going into the unknown.
0:37:20 > 0:37:23They could well be jumping out of the frying pan, into the fryer.
0:37:26 > 0:37:28Lot number 10 in your catalogue
0:37:28 > 0:37:32it's the fish bar in the Square in Resolven.
0:37:33 > 0:37:36Bid me on that, who has got 40,000 to start me?
0:37:36 > 0:37:4040 will start me, 38 if you like.
0:37:40 > 0:37:43Bid me surely, 30, is that?
0:37:43 > 0:37:47I'll start on 30, thank you, sir. At 30,000 is all I'm bid,
0:37:47 > 0:37:49do I have 32?
0:37:49 > 0:37:534, thank you. At 34,000, 5 then.
0:37:53 > 0:37:5735, thank you. 35,000. At 35 here, 6?
0:37:57 > 0:38:016 I'm bid, 36,000 and another, 7, thank you.
0:38:01 > 0:38:02At 37, fresh bidder at 8.
0:38:02 > 0:38:0638. At 38. At 38 seated.
0:38:06 > 0:38:0939? Thank you. 39,000. 40? Thank you.
0:38:09 > 0:38:1240 I'm bid seated in the back.
0:38:12 > 0:38:15At 40,000, now you're out behind, and I'm selling all the time.
0:38:15 > 0:38:18At 40,000, brand-new come in again, yes or no?
0:38:18 > 0:38:22Hammer's up, last chance. Change your mind? Quick if you want it.
0:38:22 > 0:38:25At £40,000, have you all done?
0:38:25 > 0:38:27Thank you, very much.
0:38:29 > 0:38:32The successful bid of £40,000 was made by Richard.
0:38:32 > 0:38:37He's a local chap, born and bred in the area.
0:38:37 > 0:38:40He's been working on short-term contracts in the logistics industry
0:38:40 > 0:38:44for years, but it's now been 12 months since his last project.
0:38:44 > 0:38:46He thought it was time for a change,
0:38:46 > 0:38:49though he sounds like a fish out of water.
0:38:49 > 0:38:54I met him down at the water's edge to hear about his catch of the day.
0:38:56 > 0:38:59So, Richard, very fitting that we should chat by a river,
0:38:59 > 0:39:01seeing that you bought a fish and chip shop.
0:39:01 > 0:39:04- Yes.- Nice to meet you, anyway. Why did you want to buy it?
0:39:04 > 0:39:09I suppose at the moment, investment's aren't doing very well.
0:39:09 > 0:39:13I've got to an age where I'm practically
0:39:13 > 0:39:15unemployable, I suppose.
0:39:15 > 0:39:17I still feel I've work left in me.
0:39:17 > 0:39:20It's something to keep me off the streets on the dark nights
0:39:20 > 0:39:23during the winter, and something to do, basically.
0:39:23 > 0:39:26Have you bought it to run it as a fish and chip shop?
0:39:26 > 0:39:28- Yes.- Wow!
0:39:28 > 0:39:30Do you have any experience in that?
0:39:30 > 0:39:34No. I attended a course the other day,
0:39:34 > 0:39:36with the National Fish Fryers Federation.
0:39:36 > 0:39:41We spent three days in Leeds, trying to learn how to run a chip shop.
0:39:41 > 0:39:45- I guess there's more in it than meets the eye?- Oh yes.
0:39:45 > 0:39:48It'll take more than three days to learn it, I'm sure.
0:39:48 > 0:39:52But it gives you a good flavour of what needs to be done.
0:39:55 > 0:39:57As Richards says himself,
0:39:57 > 0:40:01work wise, he's taken a bit of a battering in the last year.
0:40:01 > 0:40:05While having the time off has been great, he's now at a loose end.
0:40:05 > 0:40:09But I don't think this purchase was a flash in the pan decision.
0:40:09 > 0:40:10Why a fish and chip shop?
0:40:10 > 0:40:14Why not a sandwich bar or a gift card shop, or anything else?
0:40:14 > 0:40:18There are a good margins in fish and chips.
0:40:18 > 0:40:21You've got permission to trade as a fish and chip shop,
0:40:21 > 0:40:24which isn't always easy to get.
0:40:24 > 0:40:25It's a very quick turnover.
0:40:25 > 0:40:29You've got raw-material, potatoes and fish in the morning,
0:40:29 > 0:40:31and by the evening, you've converted into cash.
0:40:31 > 0:40:34There's no credit, no bad debt,
0:40:34 > 0:40:37it's lots of things going for it as a business model.
0:40:37 > 0:40:39This property has a central location.
0:40:39 > 0:40:42It's close to Richard's home, and it fulfils his ambition
0:40:42 > 0:40:44to run his own business.
0:40:44 > 0:40:49It just seemed too good to let off the hook.
0:40:49 > 0:40:52And how much have you set aside to sort it out?
0:40:52 > 0:40:57We've still got a reasonable budget, not a a massive budget,
0:40:57 > 0:41:00but under 10,000 I'd have hoped we could have sorted it out.
0:41:00 > 0:41:04Tell me the process from now until of the first
0:41:04 > 0:41:08time somebody comes in and says, I'll have a cod and chips, please.
0:41:08 > 0:41:11The place has got to be stripped out, to start with.
0:41:11 > 0:41:15I think everything needs to be cleaned up.
0:41:15 > 0:41:17We need to see what's working,
0:41:17 > 0:41:21what's not working, environmental health need to come and have a look.
0:41:21 > 0:41:24Initially, I don't see us making many changes to it,
0:41:24 > 0:41:28other than a deep clean and just trying to get it running.
0:41:28 > 0:41:31Once it's trading, hopefully as trade builds up,
0:41:31 > 0:41:33we can invest more money in it.
0:41:33 > 0:41:36Any plans for marketing, maybe leaflet dropping
0:41:36 > 0:41:39through people's doors and things like that? May be an opening party?
0:41:39 > 0:41:42No. I think what we'll do is we'll have a little trial
0:41:42 > 0:41:46with some friends to make sure the fish and chips are up to standard
0:41:46 > 0:41:50before we open to the public. That's the only thing will happen.
0:41:50 > 0:41:54We don't want it to be a big flash in the pan today,
0:41:54 > 0:41:56and then tomorrow, no-one comes.
0:41:56 > 0:41:58We just want it to grow organically.
0:41:58 > 0:42:01We're in a position to wait if we need to,
0:42:01 > 0:42:05and hopefully, it'll be another service for the village.
0:42:05 > 0:42:09Nice sentiment, but with a sandwich bar over the road
0:42:09 > 0:42:12and another fish and chip shop at the bottom of the village,
0:42:12 > 0:42:15there are already some big fish in the pond.
0:42:15 > 0:42:18So there could be long hours ahead.
0:42:18 > 0:42:22- You'll end up living and breathing this for a while, won't you? - For a while, yes.
0:42:22 > 0:42:24- And that's OK? - Yes. It's got to be, hasn't it?
0:42:24 > 0:42:27And it's a complete break from anything you've ever done before.
0:42:27 > 0:42:29Absolutely, absolutely.
0:42:29 > 0:42:32Maybe madness in some people's eyes, I suppose,
0:42:32 > 0:42:35but we're gonna give it a go.
0:42:35 > 0:42:38For the next six weeks, Richard's definitely going to be rolling up
0:42:38 > 0:42:41his sleeves to give the old fish bar ready for its first customer.
0:42:41 > 0:42:47I just hope it doesn't take too much of a battering along the way.
0:42:47 > 0:42:50For Richard, I get the impression the fish and chip shop
0:42:50 > 0:42:52is a bit of a sprat to catch a mackerel.
0:42:52 > 0:42:53It's not just about the business,
0:42:53 > 0:42:57it's about giving him something he can throw himself into, a project.
0:42:57 > 0:42:59There's a lot of work involved,
0:42:59 > 0:43:02both in sorting the fish and chip shop out, and in running it.
0:43:02 > 0:43:04So, how is he going to get on?
0:43:04 > 0:43:07You can find out - salt and vinegar supplied -
0:43:07 > 0:43:08at the end of the show.
0:43:11 > 0:43:16There are usually tears and stress where buying property is concerned.
0:43:16 > 0:43:20Will today's properties turn out to be dreams or nightmares?
0:43:20 > 0:43:23We can't put it off any longer. Let's find out.
0:43:24 > 0:43:28Back to Southampton, where Rana, a full-time property developer,
0:43:28 > 0:43:33paid £143,250 for this end of terrace.
0:43:33 > 0:43:38It had planning permission to extend and convert into three flats.
0:43:38 > 0:43:41Although the house was riddled with woodworm, Rana was
0:43:41 > 0:43:46going to apply to modify the plans and add even more accommodation.
0:43:48 > 0:43:52Eight months later, and from outside, the character of the house
0:43:52 > 0:43:56looks the same, but the property is actually a lot wider.
0:43:56 > 0:43:59Rana's revised plans got the go-ahead,
0:43:59 > 0:44:04and the side extension of the original plan is being built.
0:44:04 > 0:44:07It means that on the ground floor, the original living room has been
0:44:07 > 0:44:12extended into the side extension, where a kitchen has been added.
0:44:12 > 0:44:17Behind that, there's a bedroom and a bathroom for the one-bedroomed flat.
0:44:22 > 0:44:25At the back, the scale of the revised extension is clear.
0:44:25 > 0:44:27It meant the second flat on the ground floor
0:44:27 > 0:44:30could have the two-bedrooms that Rana was after,
0:44:30 > 0:44:33just like the original plans for the top floor,
0:44:33 > 0:44:36where a second two-bedroom flat has been created.
0:44:38 > 0:44:41But this has been no normal refurbishment.
0:44:41 > 0:44:43It's practically been a new build.
0:44:43 > 0:44:47Condition of the original property was very, very poor,
0:44:47 > 0:44:52so I knew large chunks had to come down.
0:44:52 > 0:44:55Rather than repair the rotten timbers, Rana did his sums
0:44:55 > 0:44:58and decided it wouldn't be much more expensive
0:44:58 > 0:45:01to remove much of the house and replace it with new.
0:45:01 > 0:45:03So was it all demolished?
0:45:03 > 0:45:07We didn't take 100% down. I mean, it was more like,
0:45:07 > 0:45:11I would say, about 95%!
0:45:11 > 0:45:14Well, apart from one party wall, the whole house has been rebuilt.
0:45:14 > 0:45:16Everything has been redone -
0:45:16 > 0:45:19new windows, wiring, plumbing, plastering.
0:45:19 > 0:45:22Outside, there's been some careful recycling.
0:45:23 > 0:45:27This is the original line of the original property,
0:45:27 > 0:45:30and what we've done is extended it four feet up to that corner.
0:45:30 > 0:45:33To keep the character of the property,
0:45:33 > 0:45:37we've used the same bricks that came from the demolished
0:45:37 > 0:45:41part of the building, hence the front of the property
0:45:41 > 0:45:45looks as it was before, but in an extended form.
0:45:45 > 0:45:47It really is a brilliant illusion.
0:45:47 > 0:45:50Even the corner features were faithfully rebuilt
0:45:50 > 0:45:53and that attention to detail continued at the back.
0:45:56 > 0:45:59There, we've done the extension,
0:45:59 > 0:46:02but we had quite a few problems when we were doing it.
0:46:02 > 0:46:04The footings were a major problem.
0:46:04 > 0:46:07We had to dig down nine or ten feet.
0:46:07 > 0:46:09We put in 14 cubic metres of concrete.
0:46:09 > 0:46:15It took us a lot of time, effort and money, but we're glad we've done it.
0:46:15 > 0:46:17The end result has been good.
0:46:17 > 0:46:22Absolutely. Rana has project-managed his team of builders,
0:46:22 > 0:46:25creating three flats, but at what cost?
0:46:25 > 0:46:29Remember, Rana paid £143,250 on auction day.
0:46:29 > 0:46:34So how much was spent on this impressive conversion?
0:46:34 > 0:46:39We had an original budget of about 70K that we were gonna spend on the
0:46:39 > 0:46:46property and, doing the figures now, it's gone over about 12K.
0:46:50 > 0:46:52Time to see how two estate agents
0:46:52 > 0:46:55from Southampton rate Rana's hard work.
0:47:00 > 0:47:03Obviously, first impressions of the property,
0:47:03 > 0:47:04it's done to a high standard.
0:47:04 > 0:47:08Large living room with two good-size bedrooms.
0:47:08 > 0:47:10Overall, a generally good finish.
0:47:10 > 0:47:12I think that the standard of the finish is very good.
0:47:12 > 0:47:15It's not totally complete at the moment,
0:47:15 > 0:47:17but from what I've seen, it's very good.
0:47:17 > 0:47:20One of the negatives I find in this development
0:47:20 > 0:47:22is the second bedroom downstairs.
0:47:22 > 0:47:25It's a little bit small, not really a double room
0:47:25 > 0:47:27and would probably only be used as a study area.
0:47:27 > 0:47:32Obviously, the best apartment is the two-bedroom on the first floor.
0:47:32 > 0:47:34Very good size, nice and spacious.
0:47:34 > 0:47:35You mustn't grumble with the one-beds.
0:47:35 > 0:47:37They're a good layout,
0:47:37 > 0:47:40ideal for one person, that sort of thing.
0:47:40 > 0:47:42The conversion looks to have pretty much
0:47:42 > 0:47:44got the thumbs-up from the experts.
0:47:44 > 0:47:47There's really only one flat to finish off.
0:47:47 > 0:47:49So what's the plan now for Rana?
0:47:49 > 0:47:51Is he going to rent or sell?
0:47:51 > 0:47:56We are gonna retain this property and add it onto our portfolio.
0:47:56 > 0:48:02All three flats have been already let, and hopefully we've
0:48:02 > 0:48:07got the first lot of people moving in the middle of next week.
0:48:07 > 0:48:10Let's find out how much each of the three flats
0:48:10 > 0:48:13could generate in rental income.
0:48:13 > 0:48:16For rental purposes, the two-bedroom flat on the first floor,
0:48:16 > 0:48:20I'd probably recommend a figure at around 650 per calendar month.
0:48:20 > 0:48:24Properties on the ground floor - the one-bedroom, probably looking
0:48:24 > 0:48:28between £500 and £525 per calendar month.
0:48:28 > 0:48:32I would probably say the two-bedroom upstairs would be round about 640.
0:48:32 > 0:48:35The one-bedroom downstairs, around about 525 per calendar month.
0:48:35 > 0:48:39The two-bedroom property, around about 550 per calendar month.
0:48:39 > 0:48:43The upstairs ones were spot on, because we achieved that.
0:48:43 > 0:48:46The downstairs, we've achieved a little bit more
0:48:46 > 0:48:50than what they've said, so we're not fussed.
0:48:50 > 0:48:51But how much is it worth?
0:48:51 > 0:48:58The £82,000 budget on top of what he paid at auction makes 225,000.
0:48:58 > 0:49:01The two-bedroom, I'd probably recommend
0:49:01 > 0:49:03an asking price of around £125,000.
0:49:03 > 0:49:05That's the first floor property.
0:49:05 > 0:49:10The ground floor, 85 for the smallest one,
0:49:10 > 0:49:13around 95 for the larger one.
0:49:13 > 0:49:15I would value the first-floor flat at 119,950.
0:49:15 > 0:49:20The large one-bedroom, I would value around about 85,000,
0:49:20 > 0:49:23and the smaller two-bedroom, I'd value around 95,000.
0:49:23 > 0:49:29So, potentially, £75,000 gross profit.
0:49:29 > 0:49:32Is that in line with Rana's forecast?
0:49:32 > 0:49:38We have our own figures that we're working around and,
0:49:38 > 0:49:43even at those figures, I think we've still got a good margin in it.
0:49:43 > 0:49:46What will he do after this one?
0:49:47 > 0:49:53I think I still want to do possibly one or two more sites similar to this
0:49:53 > 0:49:59sort of project and hopefully, in 10, 15 years, my son can take over
0:49:59 > 0:50:00and take it to the next level.
0:50:07 > 0:50:10We're back in Resolven, South Wales.
0:50:10 > 0:50:15Local man Richard had paid £40,000 for this fish-and-chip shop.
0:50:15 > 0:50:17It was a real sea change for him,
0:50:17 > 0:50:21as he was a qualified logistics consultant.
0:50:21 > 0:50:24But, after he'd been out of work for a year, he decided to try
0:50:24 > 0:50:27and net some profit from running the local chippie.
0:50:27 > 0:50:30Now, six months later, we've returned to see if
0:50:30 > 0:50:36Richard's in deep water or if he's landed a catch of the day.
0:50:36 > 0:50:40Well, on the inside, the chippy certainly looks
0:50:40 > 0:50:44a whole lot cleaner and ready to rock.
0:50:44 > 0:50:47But it's taken longer than expected to get this place shipshape
0:50:47 > 0:50:51because, to start with, Richard was floundering about.
0:50:54 > 0:50:56Since the last time you were here,
0:50:56 > 0:50:58we didn't do anything for a month or two.
0:50:58 > 0:51:02Then we focused on trying to get things done.
0:51:02 > 0:51:06Took everything out of there first of all, then we cleaned everything.
0:51:06 > 0:51:09We got the place rewired, new electrical boxes in,
0:51:09 > 0:51:14and then we had a carpenter there who did all the cladding.
0:51:14 > 0:51:18We did have an issue with the floor.
0:51:18 > 0:51:20We got the public health people in before we started,
0:51:20 > 0:51:23and they were quite happy with the floor,
0:51:23 > 0:51:25but I wanted a floor that was easy to clean.
0:51:25 > 0:51:28I'd got people in there to give me a quotation for a new floor and they
0:51:28 > 0:51:31said, "Don't worry, we can screed over the top of the tiles
0:51:31 > 0:51:33"and then lay the new floor."
0:51:33 > 0:51:35They screeded over the top of the tiles
0:51:35 > 0:51:37and then we couldn't open the door.
0:51:37 > 0:51:39So we had to dig some of the tiles up.
0:51:39 > 0:51:41It's just one of the lessons that you learn.
0:51:41 > 0:51:45And another was to trawl through the history books,
0:51:45 > 0:51:49looking for cleaning tips from the past.
0:51:49 > 0:51:52As you can see, we've still got the original equipment here.
0:51:52 > 0:51:57You can see the chip box and the fryers.
0:51:57 > 0:52:00I spent hours cleaning these things with Brillo pads
0:52:00 > 0:52:02and goodness knows what until I found, in the end,
0:52:02 > 0:52:06that the best thing to do it was plain old washing soda,
0:52:06 > 0:52:08a remedy people had used for years and years.
0:52:08 > 0:52:11It does a good job and it's cheap.
0:52:11 > 0:52:16It wasn't just the scale of the fish fryer that took Richard by surprise.
0:52:19 > 0:52:23We looked around for some quotations for a stainless-steel top,
0:52:23 > 0:52:26and they wanted £3,000, which I thought was
0:52:26 > 0:52:31a ridiculous price when you consider the length of the counter,
0:52:31 > 0:52:33so we looked for some new options.
0:52:33 > 0:52:35What could we do to make the job cheaper?
0:52:35 > 0:52:40I spoke to the carpenter we had here and we talked over some options.
0:52:40 > 0:52:43One of the options was that he could make
0:52:43 > 0:52:46a counter out of a double thickness of plywood.
0:52:46 > 0:52:50We bought the stainless steel locally from a local steel supplier and got
0:52:50 > 0:52:54it folded with one of their suppliers and we ended up with
0:52:54 > 0:52:58a £3,000 counter plus this counter at the front
0:52:58 > 0:53:02for just over £1,000, so we saved quite a bit of money on that.
0:53:04 > 0:53:08Being on his mettle netted Richard £2,000,
0:53:08 > 0:53:11so where has his budget landed?
0:53:11 > 0:53:13Is he buoyant or in deep water?
0:53:13 > 0:53:16I hadn't put a budget on it, but I hoped we wouldn't spend more
0:53:16 > 0:53:21than about 5000, and I think we spent about 6000 in the end.
0:53:21 > 0:53:25Remember, the chip shop went under the hammer at 40,000,
0:53:25 > 0:53:28so Richard's total spend is 46,000.
0:53:30 > 0:53:33We've been open for a few weeks. We didn't open with a big fuss.
0:53:33 > 0:53:37We just opened the doors and let things grow organically.
0:53:37 > 0:53:39Business has got better and better.
0:53:39 > 0:53:42We haven't opened at daytime yet except on a Saturday.
0:53:42 > 0:53:44It's just been evening opening.
0:53:46 > 0:53:49Richard had been out of work for a year but, after buying the chippy,
0:53:49 > 0:53:51he went on a fish fryers' course
0:53:51 > 0:53:54and is now more than happy with his catch.
0:53:54 > 0:53:56When you haven't worked for a while,
0:53:56 > 0:53:59you don't get contact with as many people as you do in working life.
0:53:59 > 0:54:04It's nice to be behind the counter, talking to people, having people
0:54:04 > 0:54:07back and forth, and then there are the new skills to learn as well.
0:54:07 > 0:54:12Some people want their chips hot and other people want them really hot
0:54:12 > 0:54:14so they don't get cold by the time they get them home.
0:54:14 > 0:54:17Whereas we were taught that white chips were the thing,
0:54:17 > 0:54:21some of the locals don't like them white, they like them with colour.
0:54:21 > 0:54:24So you try to please everyone, I suppose, in the end.
0:54:25 > 0:54:28Two local property experts will certainly have
0:54:28 > 0:54:31something to say about Richard's refurbishment.
0:54:31 > 0:54:33Let's see what they think.
0:54:33 > 0:54:35I think it's been a really good transformation.
0:54:35 > 0:54:39When he bought the building, it was a bit run-down, a bit shabby.
0:54:39 > 0:54:43He's done some really good work with it. It's clean, bright and fresh.
0:54:43 > 0:54:46It's a nice place to go and buy chips, ultimately.
0:54:46 > 0:54:50My first impressions of the property are obviously it's very small.
0:54:50 > 0:54:54However, it's neat and tidy and quite clean.
0:54:54 > 0:54:57Generally, it's a nice commercial unit.
0:54:57 > 0:55:00The ultimate thing for a food place is that it's clean
0:55:00 > 0:55:03and you know you're gonna be getting good quality product,
0:55:03 > 0:55:06and I think that's what people will get when they go there.
0:55:06 > 0:55:09It's unfortunate that the sandwich shop across the road has closed,
0:55:09 > 0:55:12but I think that can only be good for the current owner of the chip shop.
0:55:12 > 0:55:15Yes, but you don't know how long it'll be
0:55:15 > 0:55:19before another business opens there, and possibly another rival.
0:55:19 > 0:55:22There will be competition coming back in.
0:55:22 > 0:55:26We've just sold the lease there as a sandwich and baguette bar,
0:55:26 > 0:55:30so there will be competition in the area.
0:55:30 > 0:55:32Maybe they could go into partnership.
0:55:32 > 0:55:34Just think of the chip butties!
0:55:34 > 0:55:38Richard paid £40,000 at auction and spent £6,000 on refurbishment.
0:55:38 > 0:55:41How much is his fish-and-chip shop now worth?
0:55:41 > 0:55:44The bricks and mortar value on this, I would consider,
0:55:44 > 0:55:51in its current condition, is in the region of around 30,000.
0:55:51 > 0:55:55We'd probably add a bit more in for goodwill and fixtures and fittings.
0:55:55 > 0:55:59I think we'd give a global figure of around about 45,000.
0:55:59 > 0:56:02I originally valued it at about 17,000 and I don't
0:56:02 > 0:56:05think that's changed much, given the current marketplace.
0:56:05 > 0:56:07But the value of this type of property
0:56:07 > 0:56:10is in the business it creates, and ultimately,
0:56:10 > 0:56:15as long as he's creating a business, making a living, he should be happy.
0:56:15 > 0:56:18Of course, that all-important goodwill element will take time
0:56:18 > 0:56:21to generate, but judging from Richard's initial sales,
0:56:21 > 0:56:24he could soon be fishing out a healthy income here.
0:56:24 > 0:56:27I'm not out to make a quick buck.
0:56:27 > 0:56:30It wasn't a project that we would just do and walk away from.
0:56:30 > 0:56:33It was a project to give us a long-term income, I hoped,
0:56:33 > 0:56:37or an income for a few years anyway, and then we'll see where we go.
0:56:37 > 0:56:40I just want people to say, "Well, you've done a decent job
0:56:40 > 0:56:43"of what you've done and the chips are nice!"
0:56:43 > 0:56:46And that must be true.
0:56:46 > 0:56:49We couldn't get the crew out of the place!
0:56:52 > 0:56:54Well, that's all we've got time for,
0:56:54 > 0:56:56but there'll be more thrills and spills
0:56:56 > 0:56:58from the auction room next time.
0:56:58 > 0:57:01- Join us then for more Homes Under The Hammer.- See you again.- Bye!
0:57:20 > 0:57:23Subtitles by Red Bee Media Ltd
0:57:23 > 0:57:25E-mail subtitling@bbc.co.uk