0:00:02 > 0:00:03Welcome to Homes Under The Hammer.
0:00:03 > 0:00:07Whether it's a house you're after, land or a commercial opportunity...
0:00:07 > 0:00:11..there is usually a fantastic variety in the auction catalogue...
0:00:11 > 0:00:16..so join us now as we follow some of the thousands of people who buy their home under the hammer.
0:00:41 > 0:00:45Now, the bidding process can be a nerve-wracking experience.
0:00:45 > 0:00:50But, if you've done your research, you've calculated a realistic budget,
0:00:50 > 0:00:52you might even enjoy all the excitement.
0:00:52 > 0:00:56So, here's what the bidders went for on today's show.
0:00:56 > 0:01:03In Staffordshire, I think I've found a solution to the layout issues in this house.
0:01:03 > 0:01:05So...problem solved.
0:01:08 > 0:01:11I take a trip to colourful south-east London.
0:01:11 > 0:01:15This room is a little bit blue for me, but I could get used to it.
0:01:16 > 0:01:19And I visit a house in Bradford.
0:01:19 > 0:01:24Perhaps it's not as bad as it looks. But then again...
0:01:24 > 0:01:26Urgh! That is more of an issue.
0:01:28 > 0:01:31All these properties have been sold at auction,
0:01:31 > 0:01:35and we find out who bought them and what they paid for them when they went under the hammer.
0:01:38 > 0:01:44Today, I am in Newcastle-under-Lyme, known simply as "Castle" to the locals.
0:01:44 > 0:01:49It's historically a market town and forms part of the Potteries area in Staffordshire.
0:01:49 > 0:01:53This is Cross Heath, a suburb of Newcastle-under-Lyme.
0:01:53 > 0:01:56It's walking distance to the town centre, which is good,
0:01:56 > 0:02:00and the whole area is undergoing an environmental improvement scheme,
0:02:00 > 0:02:03which basically means it's all being smartened up.
0:02:03 > 0:02:06I'm here to see a three-bedroom mid-terrace
0:02:06 > 0:02:10at a guide price of 65,000 quid, and it looks pretty good.
0:02:11 > 0:02:14Oh, it's this one, by the way.
0:02:15 > 0:02:19Hughes Avenue is a quiet cul-de-sac, so there's not much traffic noise.
0:02:19 > 0:02:22That's a bonus, as these windows aren't double glazed.
0:02:30 > 0:02:35OK. Straight inside, and I notice you've got this nice tiled floor here
0:02:35 > 0:02:39and I'm thinking straight away, 1930s property, a good, solid build, that's for sure.
0:02:39 > 0:02:45Through to the sitting room - a good-size space, and we've got this bay window which is nice to see,
0:02:45 > 0:02:50and these floorboards. Haven't been touched, which is brilliant. Stripped, those will look beautiful.
0:02:50 > 0:02:55The original fireplace - get rid of that and put something with more character in there
0:02:55 > 0:02:57and you'd create a nice focal point.
0:02:57 > 0:03:02But no radiators, so you will have to factor in the cost of central heating into your budget.
0:03:02 > 0:03:05Through into the kitchen. Well, look at this.
0:03:05 > 0:03:09It's so original, it's brilliant. Do you remember these kind of cupboards?
0:03:09 > 0:03:12I do from my childhood. Clearly, you'd want to do something in here.
0:03:12 > 0:03:17Refurbish the whole thing, but you'd totally revolutionise the way this place felt.
0:03:17 > 0:03:22The one bad thing - this is the only bathroom and toilet in the property.
0:03:22 > 0:03:26Now, for this house, which could be a great family home, that isn't ideal.
0:03:26 > 0:03:29So you want to consider shifting that upstairs.
0:03:29 > 0:03:33Let's see if we've got space to do that.
0:03:33 > 0:03:37This kitchen's not a great size for a family house,
0:03:37 > 0:03:39but if you moved the bathroom upstairs
0:03:39 > 0:03:44then this whole area could be opened up to create a well-proportioned kitchen,
0:03:44 > 0:03:46perhaps even with patio doors out to the garden.
0:03:49 > 0:03:54Upstairs, three good-sized bedrooms, certainly a big one at the front,
0:03:54 > 0:03:57a decent-sized one at the back, and a smaller one there.
0:03:57 > 0:04:01But is there that elusive space for the bathroom? Well, it looks like there might be.
0:04:01 > 0:04:06You've got this strange cupboard thing. I say strange, because it flies across -
0:04:06 > 0:04:11flying freehold - the alleyway that's below it, but who cares?
0:04:11 > 0:04:16But it's a great space and you could get a shower in there and a toilet, so problem solved.
0:04:16 > 0:04:22A flying freehold is when a piece of the property is not actually in contact with the ground
0:04:22 > 0:04:25and often goes over a neighbouring house.
0:04:25 > 0:04:29It can sometimes make getting a mortgage difficult, but isn't catastrophic,
0:04:29 > 0:04:33because it's usually resolved by buying an indemnity policy for around £100.
0:04:33 > 0:04:40I think the biggest problem is that if this is to be a bathroom, it'd be difficult to site the pipes.
0:04:40 > 0:04:44But if you don't want a bathroom in a cupboard, but you do want an upstairs bathroom,
0:04:44 > 0:04:48then the only other option is to lose one of the three bedrooms.
0:04:48 > 0:04:54Would that solution be right for the market round here? I asked a local estate agent.
0:05:03 > 0:05:06If I was buying this property, I would probably
0:05:06 > 0:05:09move the bathroom upstairs because, OK, you get rid of one bedroom,
0:05:09 > 0:05:11so it becomes a two-bedroom
0:05:11 > 0:05:16instead of a three-bedroom, but I've seen a lot of these properties where they've knocked through
0:05:16 > 0:05:20and had a nice big kitchen-diner, and put the bathroom upstairs, and it works well.
0:05:20 > 0:05:26But moving bathrooms and putting in kitchens can be costly, so would it really be worth it?
0:05:26 > 0:05:30I would value this property at around the £110,000 mark.
0:05:30 > 0:05:32It's a difficult market.
0:05:32 > 0:05:35I know there are properties on the market a bit higher than that,
0:05:35 > 0:05:40but I think, to be realistic, I would say around 110,000.
0:05:40 > 0:05:47110,000 is quite a decent uplift on what was a £65,000 guide price,
0:05:47 > 0:05:49so resale potential is not bad.
0:05:49 > 0:05:50What about rental?
0:05:52 > 0:05:55I would say to rent this out, you would probably be looking for
0:05:55 > 0:05:58somewhere between 450, 500 a month.
0:06:01 > 0:06:04So, all in all, not much to do with this one.
0:06:04 > 0:06:08And it's in a great location, so in terms of a buy-to-let investment,
0:06:08 > 0:06:10I think it was a good one to go for.
0:06:10 > 0:06:13Let's see who spotted the opportunity at the auction.
0:06:17 > 0:06:20Lot 42, 19 Hughes Avenue, Cross Heath, in Newcastle.
0:06:20 > 0:06:23This is a mid-townhouse, it does need modernising.
0:06:23 > 0:06:25We will say 60 to start.
0:06:25 > 0:06:27Lot number 42.
0:06:27 > 0:06:3260 I'm bid, thank you. £60,000, the bid's right, at £60,000.
0:06:32 > 0:06:33Can I say 62, then?
0:06:34 > 0:06:3762,000? 64?
0:06:37 > 0:06:40£63,000. At 63,000. At 63.
0:06:40 > 0:06:4564 is it now? The bid's at 63. 64.
0:06:45 > 0:06:4765...
0:06:48 > 0:06:5066. 67.
0:06:50 > 0:06:5368. 69.
0:06:53 > 0:06:5670, is it?
0:06:56 > 0:07:01£69,000 - the bid's right at 69, against you, standing.
0:07:01 > 0:07:03Take a half, it helps. 69-and-a-half.
0:07:03 > 0:07:0870. Another half?
0:07:08 > 0:07:12At £70,000. The bid is seated right, at £70,000.
0:07:12 > 0:07:17At £70,000, I'm selling it. The first time at 70.
0:07:17 > 0:07:24For the second time at 70... For the third and final time at 70,000.
0:07:25 > 0:07:27Yours, sir. Well done.
0:07:27 > 0:07:30For £70,000, just £5,000 over the guide price,
0:07:30 > 0:07:36the new owner of the three-bed house in Newcastle-under-Lyme is local man Nick.
0:07:36 > 0:07:38He joined me along with his friend Jane.
0:07:38 > 0:07:43She will project manage what will be Nick's first property development.
0:07:45 > 0:07:47Jane, Nick, lovely to meet you. Congratulations.
0:07:47 > 0:07:49Why did you want to buy this house?
0:07:49 > 0:07:57I visited the Avenue three times and I observed the price coming down,
0:07:57 > 0:08:01so I then thought I'll see Jane about this.
0:08:01 > 0:08:03Tell me more about that. Why did he come to see you?
0:08:03 > 0:08:08I do a lot of property repairs for him.
0:08:08 > 0:08:12And we've known each other for a long time.
0:08:12 > 0:08:15Nick was a quantity surveyor.
0:08:15 > 0:08:18I've always been in the building trade.
0:08:18 > 0:08:21I came and had a look and I thought it was brilliant.
0:08:21 > 0:08:25It can easily be converted or refurbed,
0:08:25 > 0:08:29without costing too much.
0:08:29 > 0:08:32Jane already looks after several properties.
0:08:32 > 0:08:35But for Nick, it's taken the recent slump in the housing market
0:08:35 > 0:08:38to encourage him to take on his own project.
0:08:38 > 0:08:41Once finished, he hopes to rent this one out
0:08:41 > 0:08:43and keep it as a pension fund.
0:08:48 > 0:08:54- Tell me what you're going to do. - We've had some plans drawn up.
0:08:54 > 0:08:58We're putting in for planning permission to convert it
0:08:58 > 0:09:00- into two flats.- Oh, right.
0:09:00 > 0:09:04This room will become a kitchen/sitting room
0:09:04 > 0:09:10and two bedrooms at the back and a bathroom under the stairs.
0:09:10 > 0:09:12It'll be compact
0:09:12 > 0:09:13and upstairs very similar.
0:09:13 > 0:09:16Crikey! That's more work than I thought
0:09:16 > 0:09:18and no small renovation.
0:09:18 > 0:09:20This is straight in at the deep end
0:09:20 > 0:09:23with a big conversion that will need both structural work
0:09:23 > 0:09:25and the planning permission.
0:09:25 > 0:09:29It'll change the house significantly from its original 1930s layout.
0:09:29 > 0:09:34Are you excited? Does it feel different to be working on Nick's first personal project?
0:09:34 > 0:09:37I think he should have done it a long time ago.
0:09:37 > 0:09:39- But he's very cautious.- Ah! OK.
0:09:39 > 0:09:43I don't think he can go wrong with the price he's paid on this property.
0:09:43 > 0:09:48I hope they aren't famous last words!
0:09:48 > 0:09:49So do I, Jane.
0:09:49 > 0:09:53This isn't just Nick's first development and pension plan.
0:09:53 > 0:09:59This is a bit of family history that they're about to change radically.
0:09:59 > 0:10:02I understand you've got a personal history with this particular road.
0:10:02 > 0:10:06Yes, it was one of my grandfather's properties
0:10:06 > 0:10:10that he constructed when he was in business.
0:10:10 > 0:10:15My mother tells me at this peak, he was finishing one a week.
0:10:15 > 0:10:18Gosh! So you're grandfather built this house?
0:10:18 > 0:10:23Not personally. It was his company that constructed it.
0:10:23 > 0:10:26Is there any significance to the name of the avenue?
0:10:26 > 0:10:29- It's my grandfather's name.- Oh.- Yes.
0:10:31 > 0:10:34Amazing. Grandpa Hughes not only built this house,
0:10:34 > 0:10:36but the entire street.
0:10:36 > 0:10:40Nick's still got some of the original deeds and paperwork.
0:10:40 > 0:10:42Nick, talk me through what we've got here.
0:10:42 > 0:10:47This is a copy of the deed for the purchase of the land,
0:10:47 > 0:10:53which my grandfather bought in 1932 for £121 and 16 shillings.
0:10:53 > 0:10:55Yeah! It says that there.
0:10:55 > 0:10:59- He actually bought the whole street? - Yes.- Oh, look. Yeah.
0:10:59 > 0:11:01What else have you got?
0:11:01 > 0:11:06This is a photograph of my grandfather,
0:11:06 > 0:11:08approximately 1960.
0:11:08 > 0:11:12- Do you remember him?- Yes, I clearly remember him.
0:11:12 > 0:11:16# You are, you are, you are
0:11:16 > 0:11:20# My family tree
0:11:20 > 0:11:22# Be good to... #
0:11:22 > 0:11:26I hope Grandpa Hughes would approve of the conversion of this house into flats.
0:11:26 > 0:11:31He may have bought the whole street for £121 and 16 shillings,
0:11:31 > 0:11:36but his grandson has earmarked £25,000 just for the work on this one house.
0:11:36 > 0:11:39I actually think that might be rather optimistic.
0:11:39 > 0:11:42Oh well. Only time will tell.
0:11:44 > 0:11:45That's a first for me.
0:11:45 > 0:11:48The property being bought by somebody whose grandfather built it in the first place.
0:11:48 > 0:11:53I'm sure with Jane's help, Nick will do a great job of this one.
0:11:53 > 0:11:59The only question is will he get that planning permission to convert it into two flats? I'm not so sure.
0:11:59 > 0:12:02You can find out later in the show.
0:12:09 > 0:12:11The lovely tree-lined road I'm walking down today
0:12:11 > 0:12:13is in south-east London.
0:12:13 > 0:12:15A place called Brockley.
0:12:15 > 0:12:17It's just five miles from London Bridge.
0:12:17 > 0:12:21The property I'm here to see commands a 10% premium
0:12:21 > 0:12:25and that's because where it sits in the Brockley area. Intrigued?
0:12:26 > 0:12:28Well, it's in a conservation area.
0:12:28 > 0:12:32And people are prepared to pay well over the odds to live here.
0:12:32 > 0:12:37Building began in the 1830s, with the majority of houses being built
0:12:37 > 0:12:39in the second half of the 19th century.
0:12:39 > 0:12:42A distinctive period property is always a huge pull.
0:12:42 > 0:12:44Although the market has cooled a little,
0:12:44 > 0:12:47there is still high demand here.
0:12:51 > 0:12:53This is Tressillian Road.
0:12:53 > 0:12:57The properties along here...are just gorgeous!
0:12:57 > 0:12:59I'm quite excited about this one.
0:12:59 > 0:13:06The property is here. It had a guide price of £280,000. It's two self-contained flats.
0:13:06 > 0:13:09I've got to go inside and have a look around.
0:13:11 > 0:13:13It looks good from the outside -
0:13:13 > 0:13:16well maintained with bay windows and an entrance porch.
0:13:16 > 0:13:20Then there's the bonus of two flats, not just one house.
0:13:20 > 0:13:26And all in a quiet street for a guide price of £280,000.
0:13:26 > 0:13:28It all seems pretty promising.
0:13:28 > 0:13:32In the house, you've got flat one, flat two.
0:13:32 > 0:13:35That is a big, long corridor.
0:13:35 > 0:13:37Sadly, these rooms are not as large as I'd hoped.
0:13:37 > 0:13:42That is because the corridor is so wide and spacious, it eats into it.
0:13:42 > 0:13:44Look here. No beautiful old fireplace,
0:13:44 > 0:13:48although you could put a Victorian one in here, which would look stunning.
0:13:48 > 0:13:51You have got beautiful ceiling height,
0:13:51 > 0:13:53and this stunning bay window.
0:13:53 > 0:13:56Overall, good first impressions.
0:13:56 > 0:13:58This room is a little bit blue for me.
0:13:58 > 0:14:01But I could get used to it.
0:14:03 > 0:14:05Blue is clearly the favoured colour here.
0:14:05 > 0:14:09Just along the hall, there's a blue bathroom and I have to say
0:14:09 > 0:14:12a rather uninspiring yellow kitchen.
0:14:14 > 0:14:16At the end of this long, windy corridor,
0:14:16 > 0:14:20is this room at the back of the house.
0:14:20 > 0:14:24To me, it feels unnatural that there is not a door here leading out to the garden.
0:14:24 > 0:14:28I know there's one in the kitchen but I think the kitchen area
0:14:28 > 0:14:30might work better down here at the end of the house.
0:14:30 > 0:14:34Of course, you have to think about moving all of the services,
0:14:34 > 0:14:39but it's always worth looking at a floor plan of a property and having a little play around,
0:14:39 > 0:14:42because it can sometimes really work in a house's favour.
0:14:42 > 0:14:44# Doin' the mess around
0:14:46 > 0:14:48# Yeah, do the mess around
0:14:48 > 0:14:50# Everybody's doin' the mess around
0:14:51 > 0:14:53# Now let me have it there, boy... #
0:14:54 > 0:14:57It would be worth fiddling around with the layout here.
0:14:57 > 0:15:00But the downstairs flat also has the benefit of a great back garden,
0:15:00 > 0:15:05which will add value, both in resale and rental returns.
0:15:05 > 0:15:08But in the upstairs flat, what you lack in outside space,
0:15:08 > 0:15:10you gain inside.
0:15:10 > 0:15:12There are two good-sized rooms,
0:15:12 > 0:15:17a spacious bathroom and a superior kitchen to the one downstairs.
0:15:17 > 0:15:19# Go on, mess around... #
0:15:20 > 0:15:24This is the master bedroom in the second flat. It benefits from the extra space
0:15:24 > 0:15:27of the internal area downstairs.
0:15:27 > 0:15:28It is much bigger up here.
0:15:28 > 0:15:32Over here, you've got this beautiful sash window,
0:15:32 > 0:15:40this dado rail but it all needs work - painting, new carpets, these windows will need attention.
0:15:40 > 0:15:43But you have got an incredible shell of a house here
0:15:43 > 0:15:44in a fantastic area.
0:15:44 > 0:15:46What's not to like?
0:15:48 > 0:15:50I guess one of the key words there is house.
0:15:50 > 0:15:55Should this be returned to the original layout as a home?
0:15:55 > 0:15:58Or do two flats make more economic sense?
0:15:58 > 0:16:00What does the local estate agent think?
0:16:02 > 0:16:06The property could be arranged as two units,
0:16:06 > 0:16:08as it is at the moment or it could be turned back to
0:16:08 > 0:16:09one family dwelling.
0:16:09 > 0:16:13Probably the more lucrative would be as two units.
0:16:13 > 0:16:17Probably one for the home enthusiasts would be back to an original house.
0:16:19 > 0:16:26What are those money issues? What's the difference between making this a house and keeping it as two flats?
0:16:26 > 0:16:28Once these flats have been renovated,
0:16:28 > 0:16:35you can get probably in the region of around £200,000 for a ground-floor flat with a garden.
0:16:35 > 0:16:39And around £220,000 to £230,000 for a first floor, two-bedroom flat.
0:16:39 > 0:16:43If this property was to be converted back to one original house,
0:16:43 > 0:16:47you're looking in the region of around £360,000 for this property.
0:16:49 > 0:16:53That means, from a financial point of view, the current layout works every time
0:16:53 > 0:16:56and should be good for rental income too.
0:16:58 > 0:17:01You're looking at around £800 to £850 for the ground floor one bedroom,
0:17:01 > 0:17:06and around £900 to £950 for the two-bedroom flat upstairs.
0:17:08 > 0:17:11That's tremendous rental return
0:17:11 > 0:17:17and from an investor's point of view, if you got this at the right price, it's a sure-fire winner.
0:17:17 > 0:17:22It would be fantastic to see this property used as it was first intended -
0:17:22 > 0:17:24a home for a family to enjoy.
0:17:24 > 0:17:30But financially, it works much better as two flats - your return will be far greater.
0:17:30 > 0:17:34Let's see who's done their sums as we head to the auction room.
0:17:35 > 0:17:37Lot 14...
0:17:38 > 0:17:41..is 184A, 184B
0:17:41 > 0:17:43Tressillian Road, Brockley.
0:17:43 > 0:17:45Where do you wish to start?
0:17:46 > 0:17:48200? OK, 200.
0:17:48 > 0:17:50205 anywhere?
0:17:50 > 0:17:52205 at the back.
0:17:52 > 0:17:54205, 210, sorry.
0:17:54 > 0:17:55Lost you. 210.
0:17:56 > 0:17:57Thank you. 210, new spot.
0:17:57 > 0:18:01215, 215, 220. 225.
0:18:01 > 0:18:03225.
0:18:03 > 0:18:04230.
0:18:04 > 0:18:06230.
0:18:06 > 0:18:07235.
0:18:07 > 0:18:09240.
0:18:09 > 0:18:10250.
0:18:10 > 0:18:11Well done. 250.
0:18:11 > 0:18:13255.
0:18:13 > 0:18:16260. 265.
0:18:17 > 0:18:19270.
0:18:19 > 0:18:21275.
0:18:21 > 0:18:22280.
0:18:23 > 0:18:25280 down here.
0:18:25 > 0:18:26281.
0:18:26 > 0:18:28Coming back in? If not, 280.
0:18:28 > 0:18:31First time. Second time.
0:18:32 > 0:18:33Third and last time. Are you all done?
0:18:33 > 0:18:35INDISTINCT
0:18:37 > 0:18:39282? 282.
0:18:39 > 0:18:41283 on the phone?
0:18:43 > 0:18:44284.
0:18:44 > 0:18:45284.
0:18:45 > 0:18:46285.
0:18:47 > 0:18:50284, with you, sir, in the room.
0:18:50 > 0:18:54285 anywhere else? If not, 284, first time.
0:18:54 > 0:18:55Second time.
0:18:55 > 0:18:57Third and last time. Are you all done?
0:18:57 > 0:18:58HE BANGS GAVEL
0:18:58 > 0:19:01284. Well done.
0:19:01 > 0:19:03After that hard-fought battle,
0:19:03 > 0:19:08for £284,000, just £4,000 over the guide price,
0:19:08 > 0:19:12the new owner of the two flats in Brockley is local man Kevin.
0:19:12 > 0:19:16He runs his own building firm and does property development as a sideline.
0:19:16 > 0:19:21I was intrigued to hear how he got into the building game in the first place.
0:19:21 > 0:19:22It goes back a long way.
0:19:22 > 0:19:26My father was in the building game and when I left school
0:19:26 > 0:19:30I said I'm not going to get into the building game because I didn't like doing it in my school holidays.
0:19:30 > 0:19:35Unfortunately, the jobs that I chose to go to, I didn't like.
0:19:35 > 0:19:38I liked more outdoors and more physical.
0:19:38 > 0:19:42I ended up getting into the building trade through a friend of mine,
0:19:42 > 0:19:43which I said I never would do.
0:19:43 > 0:19:45It snowballed from there.
0:19:45 > 0:19:48- Plus, I'm quite passionate about my work.- Are you?
0:19:48 > 0:19:50Yeah. I like antiques, I like old buildings
0:19:50 > 0:19:55so I tend to be a bit more for restoring houses how they should be,
0:19:55 > 0:19:58to a certain degree.
0:19:58 > 0:20:02A lot of people come in, they make them look glamorous but they don't do the stuff underneath
0:20:02 > 0:20:03what you don't see.
0:20:03 > 0:20:07There you are saying, all those years ago, "No, I don't want to be a builder."
0:20:07 > 0:20:12- And now I can see a very passionate man, who loves his trade, loves doing what he does...- Yeah.
0:20:12 > 0:20:14with a property portfolio?
0:20:14 > 0:20:17Yeah. And my wife would like me to retire...
0:20:17 > 0:20:19SHE LAUGHS
0:20:19 > 0:20:24because I'm a bit of a workaholic but if you love your work, and you're still active, why give it up?
0:20:24 > 0:20:26I should take more holidays, though, my wife keeps telling me.
0:20:26 > 0:20:30Kevin has both sold properties and kept some for rental.
0:20:30 > 0:20:34He knows that doing the job right first time pays dividends.
0:20:34 > 0:20:38It reduces subsequent problems, making life as a landlord less hassle,
0:20:38 > 0:20:40and pays for itself in the long run.
0:20:40 > 0:20:44Let's talk about these two flats that you've bought.
0:20:44 > 0:20:47What do you think needs doing to them to bring them up to standard?
0:20:47 > 0:20:50You need to refigure this room, which is a kitchen.
0:20:50 > 0:20:54This will go into the back part. Put some nice doors in.
0:20:54 > 0:20:59- Bring the garden a bit into the house.- You'll move this at the back? - Yeah. And make this a bedroom.
0:20:59 > 0:21:03The bathroom isn't big but you can still make it look quite nice,
0:21:03 > 0:21:05a nice bit of lighting.
0:21:05 > 0:21:07You haven't got to spend a fortune on things.
0:21:07 > 0:21:09If you get your tiling right and a bit of lighting,
0:21:09 > 0:21:13get a bit of quality on your white ceramics, make them look good.
0:21:13 > 0:21:16Don't go for the cheap option cos I don't like that.
0:21:16 > 0:21:19What sort of budget do you think you'll be looking at
0:21:19 > 0:21:21for each individual flat?
0:21:21 > 0:21:22How much have you got to spend on them?
0:21:22 > 0:21:26I wouldn't want to spend no more than about £30,000 per unit.
0:21:26 > 0:21:29I would hope to get it under that.
0:21:29 > 0:21:32But if I spent £30,000 per unit, they would be nice flats.
0:21:32 > 0:21:35Maybe more upstairs because it's a bigger unit.
0:21:35 > 0:21:39But £30,000 maximum.
0:21:40 > 0:21:43£30,000 per flat is a healthy budget
0:21:43 > 0:21:46so Kevin is putting his money where his mouth is.
0:21:46 > 0:21:49He wants to deliver a good-quality product here.
0:21:49 > 0:21:52For him, it isn't just a case of handing over the cash
0:21:52 > 0:21:54and telling his building team what jobs to get on with.
0:21:56 > 0:21:58I work with my guys.
0:21:58 > 0:22:01If they say, "That's hard." I get in and do it with them.
0:22:01 > 0:22:04I don't run around in a three-piece suit. I'll do it with them.
0:22:04 > 0:22:08- Will you be in here stripping that wallpaper back?- I ain't got a problem.
0:22:08 > 0:22:12I'll take the ceilings down and I'll put a new drainage in. I've never had a problem.
0:22:12 > 0:22:16I was up on a roof a few days ago taking chimney stacks down.
0:22:16 > 0:22:17I haven't got a problem.
0:22:17 > 0:22:21When it's all looking lovely, it looks fantastic and it's decorated,
0:22:21 > 0:22:25are you going to rent these out or sell them on?
0:22:25 > 0:22:28I'll get an agent in, see what he says.
0:22:28 > 0:22:34If I think the yield's too good for the rental profit, I'll sell them.
0:22:34 > 0:22:39If I think I'll rent them, then I'll rent them for maybe
0:22:39 > 0:22:42a year, two years and see how the market fluctuates.
0:22:42 > 0:22:45How has the market affected you, being a builder
0:22:45 > 0:22:49owning your own company and having a property portfolio?
0:22:49 > 0:22:55- Have you suffered with the downturn in the market?- No. The majority of the stuff that I've got, I own.
0:22:55 > 0:22:59I don't borrow. I keep my borrowing to a minimum.
0:22:59 > 0:23:02I've built it up through hard work and reinvesting.
0:23:02 > 0:23:07You could go out and have great holidays and be flash. I don't. I've put it back in.
0:23:07 > 0:23:12- You need to take more holidays - your wife's told you.- She has. - That's what you need to do!
0:23:12 > 0:23:15I put it back in because I believe,
0:23:15 > 0:23:17if you want something, you've got to work hard for it.
0:23:17 > 0:23:23It's no good sitting on your backside moaning and groaning - everybody can do that. You get out what you put in.
0:23:23 > 0:23:25# ..keep on working
0:23:25 > 0:23:27# Keep on working
0:23:27 > 0:23:29# Keep on working
0:23:29 > 0:23:30# Keep on working
0:23:30 > 0:23:32# Keep on working
0:23:32 > 0:23:34# Keep on working
0:23:34 > 0:23:35# Keep on working
0:23:35 > 0:23:37# Work. #
0:23:38 > 0:23:40What doesn't this man know?!
0:23:40 > 0:23:42He really wants to make the best of this property.
0:23:42 > 0:23:45He's one of the more thorough builders I've met
0:23:45 > 0:23:47and he takes pride in his work.
0:23:47 > 0:23:55But how much time and money will be spent on this conservation beauty? Find out later in the programme.
0:23:56 > 0:24:03Coming up - this rather grand house in Bradford comes complete with its own air conditioning unit.
0:24:03 > 0:24:06Nice bit of ventilation there.
0:24:07 > 0:24:11Back in south-east London, has Kevin's flat refurbishment
0:24:11 > 0:24:14been one property too far for him?
0:24:14 > 0:24:17I don't want to go from loving my work to hating my work.
0:24:19 > 0:24:21First, was Jane right?
0:24:21 > 0:24:24I don't think he can go wrong with the price he's paid.
0:24:24 > 0:24:26I hope they aren't famous last words.
0:24:29 > 0:24:33In the Staffordshire town of Newcastle-under-Lyme,
0:24:33 > 0:24:36first-time developer Nick, a former quantity surveyor,
0:24:36 > 0:24:42decided that this three-bedroomed terraced house would make a good starting point.
0:24:42 > 0:24:46But it wasn't any old property. This was one his grandfather had built,
0:24:46 > 0:24:51along with the other houses on the road, which now bears his grandfather's surname.
0:24:55 > 0:25:00But without his grandfather's knowledge of the building industry, Nick called his friend,
0:25:00 > 0:25:06a part-time property developer, Jane, for advice and assistance. Along with her, he decided
0:25:06 > 0:25:10the best way to maximise the house was to turn it into two two-bedroom flats.
0:25:10 > 0:25:16But over a year later, had they managed to bring their ambitious plans to fruition?
0:25:18 > 0:25:23It's looking promising. There's off-street parking at the front, a necessity for any new flats.
0:25:23 > 0:25:27Inside, as the two front doors indicate,
0:25:27 > 0:25:30they have successfully converted the house into two flats.
0:25:30 > 0:25:35Nick explains exactly how they achieved this.
0:25:36 > 0:25:39Originally, this was the front living room.
0:25:39 > 0:25:46We've created extra space by taking out the chimney breast,
0:25:46 > 0:25:50making a larger living area.
0:25:50 > 0:25:57Over here, we, erm, put this door away to give access
0:25:57 > 0:26:02to the under-stair area, which originally, was a larder,
0:26:02 > 0:26:06and extended into the rear back room area
0:26:06 > 0:26:11to form a WC, basin and shower area.
0:26:11 > 0:26:14Originally, Nick and Jane were hoping to create TWO two-bedroom flats,
0:26:14 > 0:26:19but planning permission was refused, due to the lack of designated parking for the two flats.
0:26:19 > 0:26:25They had to re-submit their plans and eventually got two ONE-bedroom flats passed.
0:26:27 > 0:26:32While the downstairs flat benefits from a garden, the upstairs one has more space.
0:26:40 > 0:26:42This is the first-floor flat.
0:26:42 > 0:26:46This was the largest bedroom.
0:26:46 > 0:26:52We've turned it into a small kitchen/living room.
0:26:52 > 0:26:55We did have a few challenges with this first-floor flat.
0:26:55 > 0:27:00We got everything done, everything was finished, everything done and dusted,
0:27:00 > 0:27:07and we'd forgotten this section four of the building regs code.
0:27:07 > 0:27:12We had to build this free-standing wall,
0:27:12 > 0:27:14packed with insulation,
0:27:14 > 0:27:19take out the kitchen, build a wall, plaster it, put the kitchen back in.
0:27:19 > 0:27:24So that was... We could have kicked ourselves for that one.
0:27:24 > 0:27:26That was a costly mistake
0:27:26 > 0:27:31as insulating the wall and doing the kitchen costs several thousand.
0:27:31 > 0:27:35Along with getting the services in, the two flats had to be sound insulated,
0:27:35 > 0:27:37which they had not accounted for.
0:27:37 > 0:27:42Along with all the other room alterations delays because of the resubmitting of the plans
0:27:42 > 0:27:44and their high-specification finish,
0:27:44 > 0:27:49the original £25,000 budget was very stretched.
0:27:49 > 0:27:57The final cost is £140,000, including the original £70,000 purchase cost.
0:27:57 > 0:28:03So you can see that, the unforeseens
0:28:03 > 0:28:05were drastically expensive.
0:28:07 > 0:28:08Woah! Not kidding!
0:28:08 > 0:28:12That budget is nearly three times over their estimate.
0:28:12 > 0:28:14Although they've achieved a lot here,
0:28:14 > 0:28:16creating two flats from one house,
0:28:16 > 0:28:21has that big spend thrown any chance of a decent return out of the window?
0:28:21 > 0:28:23What do two local estate agents think?
0:28:27 > 0:28:30It's different, from the point of view that you're expecting
0:28:30 > 0:28:31the three-bed town house
0:28:31 > 0:28:34and having used the space to get the two one-beds in,
0:28:34 > 0:28:38it's going to be quite a marketable property.
0:28:38 > 0:28:41They've done a superb job with the development.
0:28:41 > 0:28:43I wouldn't have thought you'd be able to get
0:28:43 > 0:28:45flats of this size out of this property.
0:28:45 > 0:28:50Hat's off to them. They've made a really good job.
0:28:50 > 0:28:52So the estate agents are impressed.
0:28:52 > 0:28:56But with the total spend of £140,000 to this point,
0:28:56 > 0:28:59or £70,000 per flat,
0:28:59 > 0:29:02has their decision to turn this from one dwelling into two paid off?
0:29:02 > 0:29:05If these flats were sold as leasehold flats,
0:29:05 > 0:29:11I would value each property in the region of £50,000.
0:29:11 > 0:29:15I'd value the flats at around £48,500 each.
0:29:15 > 0:29:20Ouch! That's a potential loss of £40,000, if they sold them now.
0:29:20 > 0:29:23What do they think of those valuations?
0:29:23 > 0:29:25Gosh!
0:29:27 > 0:29:28I don't know what to say to that.
0:29:30 > 0:29:33Having looked at those other ones last week,
0:29:33 > 0:29:36at 72, they were unmodernised.
0:29:36 > 0:29:41I'm not sure... It's a good job we're not selling on, isn't it?
0:29:41 > 0:29:46- Yes.- That's a disappointment. That's a big disappointment.
0:29:47 > 0:29:49Jane's right. It IS disappointing.
0:29:49 > 0:29:52Particularly after their hard work.
0:29:52 > 0:29:54But in fairness to Nick and Jane, unfortunately,
0:29:54 > 0:29:58they bought a property in an area that's had a national average 20% drop in prices
0:29:58 > 0:30:01over the last two years.
0:30:01 > 0:30:05Anyway, Nick has always planned to rent out the flats, not sell them.
0:30:05 > 0:30:10I would suggest that a rent be set somewhere in the region of £300
0:30:10 > 0:30:13per calendar month, per flat.
0:30:13 > 0:30:17We would expect to achieve somewhere around £340 per calendar month
0:30:17 > 0:30:19for each of the apartments.
0:30:19 > 0:30:21- That's a little bit low.- Yes.
0:30:21 > 0:30:25We were expecting £350.
0:30:25 > 0:30:29The project hasn't gone as well as Nick and Jane might have hoped.
0:30:29 > 0:30:34But those rental values should bring in a 5% yield. Not bad at all.
0:30:34 > 0:30:38But I guess that they won't be rushing to do this again.
0:30:38 > 0:30:39Obviously not!
0:30:39 > 0:30:41SHE LAUGHS
0:30:41 > 0:30:44Oh dear!
0:30:45 > 0:30:46# Some pages turned
0:30:46 > 0:30:49# Some bridges burned
0:30:49 > 0:30:52# But there were lessons learned... #
0:30:52 > 0:30:54Well, I've learned a lot.
0:30:54 > 0:30:57Yes. I know, Jane!
0:30:57 > 0:30:59SHE LAUGHS
0:30:59 > 0:31:01But what lessons has Nick learned?
0:31:01 > 0:31:04Make sure you start with a large fortune
0:31:04 > 0:31:07so that when you finish, you'll have a small fortune.
0:31:07 > 0:31:10# Oh, some pages turned
0:31:10 > 0:31:12# Some bridges burned
0:31:12 > 0:31:16# But there were lessons learned... #
0:31:16 > 0:31:21In the short term at least, Nick and Jane's property development career may be on hold.
0:31:21 > 0:31:27But having learned the hard way, perhaps if there is a next time, they may be less ambitious.
0:31:36 > 0:31:41I'm in Manningham in Bradford, once a major player in textile manufacture.
0:31:41 > 0:31:45And an important hub of the world's wool industry.
0:31:46 > 0:31:49# Woolly bully
0:31:49 > 0:31:51# Woolly bully... #
0:31:51 > 0:31:53Today, it's a diversely-populated area.
0:31:53 > 0:31:56I'm here to see a terraced house with a guide price of 60 grand.
0:31:58 > 0:32:02What does a guide price of £60,000 quid get you in Manningham?
0:32:02 > 0:32:06Up for auction was a four-bedroomed terrace.
0:32:06 > 0:32:07Sounds pretty good.
0:32:07 > 0:32:09However, there is a warning. And it goes...
0:32:09 > 0:32:14Ah! Ah! Ah! Ah! Subsidence alert! Subsidence alert!
0:32:14 > 0:32:17It's spelt out clear as daylight in the auction catalogue.
0:32:17 > 0:32:19It doesn't look too bad from the front here.
0:32:19 > 0:32:22It must be inside there's a problem.
0:32:26 > 0:32:29A lot of properties around here were built to house the industrial workers.
0:32:29 > 0:32:31This area was once quite sort after
0:32:31 > 0:32:36and is now part of a regeneration programme called the Manningham Masterplan.
0:32:42 > 0:32:44Well, a fairly impressive entrance hall.
0:32:44 > 0:32:47What would have been a pretty grand house in its day.
0:32:47 > 0:32:52Probably owned by one of the textile merchants who lived and worked in the area.
0:32:52 > 0:32:56A lovely floor here. Get that cleaned up for sure.
0:32:56 > 0:32:58A big front room there.
0:32:58 > 0:33:01It's in a bit of a state, but it's a nice size, high ceilings.
0:33:01 > 0:33:04Stairs up to the first floor and beyond,
0:33:04 > 0:33:08then through to the rear sitting room, a good-sized space as well.
0:33:08 > 0:33:10Interesting fireplace. Wow!
0:33:10 > 0:33:14You could do something with that to keep it. It's absolutely beautiful!
0:33:14 > 0:33:18There's something else which is unusual - a window. I don't know why, but I didn't expect it.
0:33:18 > 0:33:21Anyway, er, THAT is more of an issue.
0:33:21 > 0:33:24Right. Suddenly you're starting to see the subsidence.
0:33:24 > 0:33:29Wow! Look at that window frame. And I don't think it gets much better here.
0:33:29 > 0:33:34This is the only kitchen in the property. As you can see, it's tiny.
0:33:34 > 0:33:38It's in a right old state, but much more significantly, it's on the move!
0:33:38 > 0:33:40Look at the window frame there!
0:33:40 > 0:33:44Really bad angle. And then this door...
0:33:44 > 0:33:47Again, it's all over the place.
0:33:47 > 0:33:51Now, the big question is, is it historical subsidence or not?
0:33:51 > 0:33:55I need to do a bit more digging. But for now, we've found the problem.
0:33:55 > 0:34:00Maybe a look at the back of the property will give me a clearer picture
0:34:00 > 0:34:03of some of the rather serious concerns I've got.
0:34:03 > 0:34:06Well, to get a real idea of how bad the subsidence is,
0:34:06 > 0:34:10you have to pick your way through the rubbish at the rear of the property.
0:34:10 > 0:34:14So this is the rear extension bit. That's where the kitchen is.
0:34:14 > 0:34:17Look at the lintel above the window. It's completely askew.
0:34:17 > 0:34:22Now, it could be that this is historical subsidence from mines in the area.
0:34:22 > 0:34:26But I reckon it's also something to do with this drain on this corner.
0:34:26 > 0:34:31I reckon that's collapsed. As a result, the water seeps into the ground, it becomes sodden,
0:34:31 > 0:34:34and the whole of this corner is just sinking down.
0:34:34 > 0:34:37Now, that is obviously going to be a fairly major thing to sort out.
0:34:37 > 0:34:41In an ideal world, you'd knock it down, but the neighbour's is attached.
0:34:41 > 0:34:45If you look, that is also subsiding. So what you'd want to do,
0:34:45 > 0:34:48in an ideal world, is knock the two of them down and rebuild them,
0:34:48 > 0:34:53but clearly you'd have to get their approval to do that and they'd have to pay towards it.
0:34:53 > 0:34:56So it's a complicated issue, which at the moment is blighting this house.
0:34:58 > 0:35:03This is a former mining area, so I would expect some movement,
0:35:03 > 0:35:05though this is quite significant.
0:35:05 > 0:35:10But is it recent? You need to find that out before solving the problem.
0:35:10 > 0:35:13It's the extension I'm particularly worried about.
0:35:13 > 0:35:19Well, upstairs here, even more examples of the chaos the subsidence has caused.
0:35:19 > 0:35:21The bathroom, for instance, is not a bad size.
0:35:21 > 0:35:25I absolutely love the roll-top bath, but the floor's sloping down,
0:35:25 > 0:35:27door and window frames all over the place.
0:35:27 > 0:35:31Problems with the ceiling. I'd want to replace that whole part of the house,
0:35:31 > 0:35:34get it all sorted.
0:35:34 > 0:35:39But when you are up here, even more obvious signs of some problems.
0:35:39 > 0:35:42Nice bit of ventilation there(!)
0:35:42 > 0:35:47Brilliant(!) Anyway, we've got another floor up there, which is really good - two more bedrooms.
0:35:47 > 0:35:51And the bedrooms themselves are actually a really nice size.
0:35:51 > 0:35:53Floorboards you could strip back.
0:35:53 > 0:35:58You've got some lovely features in this house, if you could just see through the mess -
0:35:58 > 0:36:00like the stained-glass windows there.
0:36:00 > 0:36:05In its day, it was a grand house. It just needs somebody to get it back to that.
0:36:08 > 0:36:12As you may have noticed, there's graffiti on some of the walls,
0:36:12 > 0:36:14and other signs of vandalism.
0:36:14 > 0:36:18Yet also there are some fantastic original features still intact.
0:36:18 > 0:36:22So with the subsiding extension, this house is a real mixture
0:36:22 > 0:36:27of the good, the bad and the out-and-out ugly.
0:36:27 > 0:36:29But it was guided at just 60,000,
0:36:29 > 0:36:33so perhaps it's worth fighting to save it from further neglect.
0:36:33 > 0:36:35What does a local estate agent think?
0:36:39 > 0:36:43The property itself lends itself to be a fantastic family home.
0:36:43 > 0:36:46If you're looking at it as an investment,
0:36:46 > 0:36:48um, it could be a fantastic rental property
0:36:48 > 0:36:51due to its location,
0:36:51 > 0:36:54and the colleges,
0:36:54 > 0:36:58and the local employers that are around, the businesses around.
0:36:58 > 0:37:00OK, it may be worth saving.
0:37:00 > 0:37:04Let's put some numbers on those potential returns.
0:37:04 > 0:37:07This property, once renovated, would achieve,
0:37:07 > 0:37:10or hope to achieve,
0:37:10 > 0:37:14a marketable value of around £160,000.
0:37:14 > 0:37:18The rental valuation on this property, as a whole, once renovated,
0:37:18 > 0:37:23would achieve around £650 per calendar month.
0:37:24 > 0:37:29So, on the face of it, a lot of house for a guide price of £60,000.
0:37:29 > 0:37:32But dig a little deeper, and you do discover the subsidence problems.
0:37:32 > 0:37:38But hang on - let's set aside a really healthy budget to sort it out - £20-25,000.
0:37:38 > 0:37:41Your total investment in this property would only be £85,000.
0:37:41 > 0:37:45For that you get a four-bedroomed house in a really good part of Bradford.
0:37:45 > 0:37:50I think it's still a great one to go for. Let's find out who bought it.
0:37:52 > 0:37:5467.
0:37:54 > 0:37:582 Queen's Road in Bradford, vacant four-bedroomed terraced property
0:37:58 > 0:38:02needing renovation and remediation of subsidence issues.
0:38:02 > 0:38:04£60,000, may I say?
0:38:04 > 0:38:0860 for us? 60,000.
0:38:08 > 0:38:11£60,000 opening bid, thank you very much.
0:38:11 > 0:38:14And I've got 65. 70? 75?
0:38:14 > 0:38:18And 80? 85?
0:38:18 > 0:38:21Strong bid, 85 - I like that.
0:38:21 > 0:38:2486, then? You seem determined. No, shakes his head.
0:38:24 > 0:38:26£85,000, good determined bid, I like that.
0:38:26 > 0:38:30£85,000. 86 anywhere else? 86, still going.
0:38:30 > 0:38:32Hasn't put him off. 87? 87.
0:38:32 > 0:38:3488?
0:38:35 > 0:38:3688. 89?
0:38:36 > 0:38:38And 90?
0:38:38 > 0:38:43No, shaking his head. 89, you put him off, sir. £89,000 we have.
0:38:43 > 0:38:45£90,000 anywhere else?
0:38:45 > 0:38:48All done, then, at £89,000?
0:38:48 > 0:38:49Gentleman standing.
0:38:49 > 0:38:51£89,000 for the first time.
0:38:52 > 0:38:54Second...
0:38:54 > 0:38:57third and final time, if we're all done...sir.
0:38:57 > 0:39:00Excellent bidding there, gentlemen. Well done.
0:39:00 > 0:39:07The determined bidder and new owner of this four-bedroomed house is Imran. He wanted this property,
0:39:07 > 0:39:10and this one alone, for a very specific reason.
0:39:12 > 0:39:14'Imran, very good to meet you.'
0:39:14 > 0:39:16- Congratulations!- Thanks.
0:39:16 > 0:39:20- Why did you want to buy the house? - Well, the main reason was it looks into my garden.
0:39:20 > 0:39:24- Where's your house, then? - Just behind you.- Ah, OK.
0:39:24 > 0:39:29Quite an expensive way to make sure you know who's going to be peering over the fence!
0:39:29 > 0:39:31There's more to it than that, presumably.
0:39:31 > 0:39:37No, that's just about it, really. It's looked into my garden for years and we thought we'd buy it one day.
0:39:37 > 0:39:42Last year, I was willing to pay up to £160,000 for it,
0:39:42 > 0:39:47which I gave the offer to the solicitors for, and they refused it.
0:39:47 > 0:39:51- If they'd have said 200,000, I'd have given it to them.- Ooh!
0:39:51 > 0:39:56But then it's my luck that it stayed empty, went to auction and I got it for 89.
0:39:56 > 0:40:00- So what are you planning to do with it?- Obviously bring it up to spec,
0:40:00 > 0:40:02then see what we do from then.
0:40:02 > 0:40:06Either we keep it empty or we put it on rent.
0:40:06 > 0:40:10- You would contemplate keeping it empty?- Yes.
0:40:10 > 0:40:16- With a view to what?- Just leaving it empty. Nobody peering into my house!
0:40:16 > 0:40:19- This is...fantastic!- Yeah.
0:40:27 > 0:40:32So it seems Imran really would have bought this at all costs.
0:40:32 > 0:40:34But it wasn't just for himself.
0:40:34 > 0:40:38The house he lives in next door has been turned into apartments,
0:40:38 > 0:40:41for his family and two brothers, with nine children between them.
0:40:41 > 0:40:46There are quite a few of them wanting to be sure who their neighbours are.
0:40:46 > 0:40:47Tell me more about you.
0:40:47 > 0:40:53I just... We started off in the property market after my dad retired,
0:40:53 > 0:40:55and then we carried on buying.
0:40:55 > 0:40:59- And here we are today. - How many years ago did you start?
0:40:59 > 0:41:06Er, my dad retired in '97, '98, and that's when me and my brothers carried on buying and renting out.
0:41:06 > 0:41:09How many properties do you have between you?
0:41:09 > 0:41:12- I'd say just under 40.- Right.
0:41:12 > 0:41:16- And I personally have two care homes and a day nursery.- OK.
0:41:16 > 0:41:18So I spend quite a bit of time there as well.
0:41:18 > 0:41:24'So, Imran's other investments allow him the luxury of not having to buy this as a money-making venture.
0:41:24 > 0:41:29'Even so, this isn't a house you can just leave in its current state.'
0:41:29 > 0:41:32So what did you think about the condition inside when you saw it?
0:41:32 > 0:41:34I only saw it properly today.
0:41:34 > 0:41:40- Wow!- The condition doesn't bother me, cos I've done worse projects than this.
0:41:40 > 0:41:45- OK. Let me introduce you to a very serious issue of subsidence.- Yeah.
0:41:45 > 0:41:50- Did you...? You presumably know about that?- I do, yes. Most of the Manningham area is built on mines,
0:41:50 > 0:41:54and as mining tunnels collapse and stuff, obviously buildings above it
0:41:54 > 0:41:59eventually do sink, but that was many years ago, because the pointing outside hasn't cracked,
0:41:59 > 0:42:01to show that it's recently happened.
0:42:01 > 0:42:03It maybe happened 20, 30 years ago.
0:42:03 > 0:42:09- How much have you set aside to do the work?- Money's not an issue!
0:42:09 > 0:42:12I've not even looked at that. As long as it gets done, it's fine.
0:42:19 > 0:42:24'Imran's very relaxed. That's partly due to the fact that his brothers will do the renovations,
0:42:24 > 0:42:27'so he knows he'll get a good deal. After all,
0:42:27 > 0:42:32'he would have happily paid another £100,000 more for this house if necessary,
0:42:32 > 0:42:35'and the work here won't cost anything like that.
0:42:38 > 0:42:41'What a great story - '
0:42:41 > 0:42:45Imran buying this place just to stop somebody peering into his garden.
0:42:45 > 0:42:48How many of us would like to be in a position to do that, I wonder.
0:42:48 > 0:42:54Anyway, he has got some issues to sort out, and even though he's not that bothered about the budget,
0:42:54 > 0:43:00the issues of subsidence are going to be quite significant, not least getting the neighbour's approval.
0:43:00 > 0:43:03So how will he get on? We should find out later.
0:43:06 > 0:43:10So, we've left our new buyers up to their own devices for a few months.
0:43:10 > 0:43:13And we wonder what they've been up to. Let's go and find out.
0:43:13 > 0:43:18In the conservation area of Brockley in south-east London,
0:43:18 > 0:43:23this rather splendid Victorian house was snapped up for £284,000
0:43:23 > 0:43:27by local builder and part-time property developer Kevin.
0:43:27 > 0:43:31It had already been converted into two self-contained flats.
0:43:31 > 0:43:36Despite being in the building trade most of his life,
0:43:36 > 0:43:40Kevin's enthusiasm remained undaunted.
0:43:40 > 0:43:46Quite passionate about my work, so I tend to be a bit more for restoring houses how they should be,
0:43:46 > 0:43:50to a degree. Cos a lot of people come in, they make them look glamorous,
0:43:50 > 0:43:53but they don't do the stuff underneath, what you don't see.
0:43:53 > 0:43:56Eight and a half months later,
0:43:56 > 0:43:59had Kevin practised what he preached?
0:43:59 > 0:44:03The front had certainly been sympathetically updated,
0:44:03 > 0:44:06with repainted doors, windows,
0:44:06 > 0:44:08and a new path laid.
0:44:08 > 0:44:11Inside, in the ground-floor flat,
0:44:11 > 0:44:14it's out with the blues and in with a contemporary look - oak flooring
0:44:14 > 0:44:16and a modern gas fire.
0:44:16 > 0:44:19In the bathroom, there's a completely new suite
0:44:19 > 0:44:21and it's tiled throughout.
0:44:26 > 0:44:28And hooray -
0:44:28 > 0:44:31Kevin has rejigged the layout,
0:44:31 > 0:44:33swapping the kitchen and the bedroom around.
0:44:41 > 0:44:47In this flat, this has been the biggest change up to now -
0:44:47 > 0:44:51this used to be a bedroom, but now I've changed it into a kitchen,
0:44:51 > 0:44:55and also I've incorporated, by opening up the wall and putting French doors in,
0:44:55 > 0:45:00it brings the garden into the kitchen, which in my opinion makes it a much better flat.
0:45:00 > 0:45:03Changing things so that the kitchen at the back
0:45:03 > 0:45:07has direct access into the garden is spot on.
0:45:07 > 0:45:09Great minds think alike!
0:45:09 > 0:45:13While the upstairs flat may not benefit from the garden,
0:45:13 > 0:45:17the rooms are that much bigger. That sense of space has been enhanced
0:45:17 > 0:45:20by the way Kevin has finished off the rooms.
0:45:29 > 0:45:32Not only has he retained the character of the house,
0:45:32 > 0:45:35he's actually reinvigorated it.
0:45:39 > 0:45:44In this particular room, we've put high skirtings in,
0:45:44 > 0:45:50which are more traditionally Victorian, plus we've put a picture rail in and quality oak flooring.
0:45:50 > 0:45:55Plus, as you can see, we've put a nice original Art Deco fireplace,
0:45:55 > 0:45:59which gives it a bit more character as well, and I'm quite pleased.
0:45:59 > 0:46:03Kevin has been doing developments and building for many years,
0:46:03 > 0:46:08but seems to remain passionate about what he wants for his properties.
0:46:08 > 0:46:11I don't believe in cutting corners,
0:46:11 > 0:46:16because I wouldn't want it done to me. If I was to rent this or sell one of these units,
0:46:16 > 0:46:22and I met the person six months down the road, I can walk up and shake their hand, say, "How's the flat?"
0:46:22 > 0:46:24and not cross over the road.
0:46:24 > 0:46:30I could walk towards them and look at them and that's how I've always been. That's the way I will be and I am.
0:46:30 > 0:46:31That commitment means
0:46:31 > 0:46:36that he's more than just the boss and project manager.
0:46:36 > 0:46:40I've got no problem in filling up skips or taking things out,
0:46:40 > 0:46:44or helping to put cupboards up or stud work, clearing out, redesigning the kitchen,
0:46:44 > 0:46:49taking parts of a stud wall down, setting things out with my guys.
0:46:49 > 0:46:52Mainly cos of my other business, I'm always busy,
0:46:52 > 0:46:56so sometimes I can't always be here as much as I would like to be,
0:46:56 > 0:47:00but I still made a point of getting in every day, keeping an eye on things.
0:47:00 > 0:47:07Sometimes it's good to work with your guys, because they can see how you work. It reflects on them and on you.
0:47:07 > 0:47:11Kevin describes himself as a fair but tough taskmaster.
0:47:11 > 0:47:16He wouldn't ask his building team to do anything he wouldn't do himself.
0:47:16 > 0:47:18He very much leads by example and, of course,
0:47:18 > 0:47:21his input also keeps costs down.
0:47:23 > 0:47:29I anticipate the overall building cost, because obviously having my own company keeps prices down,
0:47:29 > 0:47:34but the overall building cost, I'm looking in the region of about £45,000.
0:47:34 > 0:47:37£45,000 for the two flats,
0:47:37 > 0:47:40so less than 23 grand per flat, is pretty good.
0:47:40 > 0:47:45Kevin paid £284,000 at auction for the entire property,
0:47:45 > 0:47:51bringing his total expenditure, with costs, to around £335,000.
0:47:51 > 0:47:56So does quality and commitment bring financial return?
0:47:56 > 0:48:00The transformation from the first time I saw this property is vast.
0:48:00 > 0:48:03Changing the layout to the kitchen at the back was a masterstroke.
0:48:03 > 0:48:05It's opened up that room.
0:48:05 > 0:48:10There's now a big kitchen-diner with doors opening to the garden, which will do well on the market.
0:48:10 > 0:48:12I think he's laid the property out really well.
0:48:12 > 0:48:16He's put down good quality flooring, he's decorated nicely,
0:48:16 > 0:48:17he's thought about things -
0:48:17 > 0:48:21for instance, he's put points up high on the chimney breast
0:48:21 > 0:48:25so you can put your plasma screen up, hide the wires - little things like that.
0:48:25 > 0:48:31He's put gas feeds in the chimneys so you can have a gas fire in the winter when it's cold outside,
0:48:31 > 0:48:32so it's nice and toasty inside -
0:48:32 > 0:48:37really well thought-out things that make the place really homely. A very good development.
0:48:39 > 0:48:43Well, a big thumbs up. But with £335,000 invested here,
0:48:43 > 0:48:47will the two flats add up to being a good deal?
0:48:47 > 0:48:50The valuations I'd give these properties for sale
0:48:50 > 0:48:53is around £210,000 for the ground-floor flat, with the garden,
0:48:53 > 0:48:57and £240,000 for the top-floor flat, with two bedrooms.
0:48:57 > 0:49:00Looking at the two flats, um, the one-bedroom flat, value-wise,
0:49:00 > 0:49:04I would place it at around £180,000 on the market.
0:49:04 > 0:49:09And the two-bedroom, I would place it around the £230,000 mark on the market.
0:49:09 > 0:49:13So the two flats are worth, in total,
0:49:13 > 0:49:15between £410,000 and £450,000.
0:49:15 > 0:49:19That's not a bad mark-up from £335,000.
0:49:19 > 0:49:21What does Kevin think?
0:49:21 > 0:49:28210, 220 is about, I would think, about the market value of the ground-floor flat at the moment,
0:49:28 > 0:49:29due to the quality.
0:49:29 > 0:49:36The upstairs flat is about, I would think, nearer 230, 240, realistically.
0:49:36 > 0:49:40But I'm quite adamant to sit on these for a little while.
0:49:40 > 0:49:43So, not content with a quick, healthy profit,
0:49:43 > 0:49:46Kevin feels rental is the way forward.
0:49:46 > 0:49:49If we were to rent these properties on the open market,
0:49:49 > 0:49:53you're looking at around £850 per calendar month for the ground-floor flat,
0:49:53 > 0:49:56and around £950 per calendar month for the top-floor flat.
0:49:56 > 0:50:00The spec's a little bit too good for rental, to be honest with you!
0:50:00 > 0:50:04But his first rent on these should get a really high rent.
0:50:04 > 0:50:09I'd have thought the one-bedroom garden flat would probably get somewhere between the 750-800 mark,
0:50:09 > 0:50:14and the two-bedroom should do the 900-1,000 per calendar month mark.
0:50:14 > 0:50:19That gives a total of between 1,700 and 1,850 a month -
0:50:19 > 0:50:23potentially over 20 grand a year.
0:50:23 > 0:50:26Anything over 1,600 to me is a plus,
0:50:26 > 0:50:31so if we're coming around the 1,800, yeah, I'm happy with those figures, definitely.
0:50:31 > 0:50:35After a successful project here, is it onwards and upwards?
0:50:35 > 0:50:38I'm already doing more building,
0:50:38 > 0:50:40at this moment in time, as we speak.
0:50:42 > 0:50:44It does get a bit draining,
0:50:44 > 0:50:48and I don't want to go from loving my work to hating my work,
0:50:48 > 0:50:50because then that will show in your quality,
0:50:50 > 0:50:52which I don't want to ever let that happen.
0:50:53 > 0:50:58It sounds to me like Kevin ought to take a well-earned break.
0:50:59 > 0:51:02I think I need to give the wife a holiday,
0:51:02 > 0:51:06otherwise I think it's going to be a very expensive year for me!
0:51:06 > 0:51:09So I think I'll have to sweeten her up with a little holiday.
0:51:09 > 0:51:14# ..Get up in the morning And do it all over again
0:51:15 > 0:51:20# Well, I'm a hard-livin' Hard-workin' man! #
0:51:29 > 0:51:35This rather neglected four-bedroomed house in the Manningham area of Bradford
0:51:35 > 0:51:39wasn't everyone's idea of a perfect purchase.
0:51:41 > 0:51:46But when local developer Imran snapped it up for £89,000,
0:51:46 > 0:51:48he couldn't have been happier.
0:51:48 > 0:51:51The main reason was it looks into my garden.
0:51:51 > 0:51:55- There is more to it than that, presumably.- No, that was it, really.
0:51:55 > 0:51:59It's looked into my garden for years and we thought we'd buy it one day.
0:51:59 > 0:52:04Having finally bought the house, the plan was to get his builder brothers to do it up.
0:52:04 > 0:52:08But after that, Imran wasn't so sure. So where are we,
0:52:08 > 0:52:09eight months on?
0:52:11 > 0:52:15Well, quite frankly, not much further forward.
0:52:15 > 0:52:19In fairness, they have tackled the previously subsiding extension.
0:52:22 > 0:52:28As you'll remember, this used to be a small kitchen when I first got the place.
0:52:28 > 0:52:30Now it's much bigger,
0:52:30 > 0:52:34because while we were trying to fix the subsidence,
0:52:34 > 0:52:41we thought, "We'll make it a lot bigger," and we've got more space through it now.
0:52:41 > 0:52:44Progress has really only been made on the extension.
0:52:44 > 0:52:48Work on this was delayed by neighbours also putting up an extension,
0:52:48 > 0:52:52so Imran and his brothers couldn't start work until THEY'D finished.
0:52:52 > 0:52:55Although Imran bought the property on behalf of the family firm,
0:52:55 > 0:52:58he hasn't exactly been hands on here.
0:52:58 > 0:53:03Last time I was here was when we filmed for Homes Under The Hammer then,
0:53:03 > 0:53:06and this is the second time I've been in since then.
0:53:06 > 0:53:08And quite a bit has been done.
0:53:08 > 0:53:13Like I said, my brothers have put this extension up
0:53:13 > 0:53:16and done quite a good job on it.
0:53:16 > 0:53:20Despite living just next door, Imran has trusted his brothers completely
0:53:20 > 0:53:24to crack on with it, without any input from him.
0:53:24 > 0:53:26They all live in an adjacent house
0:53:26 > 0:53:30and the main reason for buying this one was to maintain their privacy.
0:53:30 > 0:53:33But he must have plans to use it in some way, surely.
0:53:34 > 0:53:39It's not going to be a house - it's going to be like an add-on to our house,
0:53:39 > 0:53:45where our children can come and play. We're hopefully getting a snooker table, pool table, um...
0:53:45 > 0:53:50we're going to put a swimming pool between the two houses.
0:53:50 > 0:53:54Well, that's amazing - a real, whole house of fun.
0:53:54 > 0:53:56What will it have in it?
0:53:56 > 0:54:03Um, the top floor will probably be table tennis, or something of that nature, upstairs.
0:54:06 > 0:54:09The middle floor will probably be pool and snooker,
0:54:09 > 0:54:12and down here will be like the kitchen.
0:54:15 > 0:54:17We'll have an office in here for the children.
0:54:17 > 0:54:20Did he say an office? That's not much fun!
0:54:20 > 0:54:27Not all play - it'll be schoolwork and homework and studying as well as, um, playtime.
0:54:27 > 0:54:31As yet, the nine children the family's had between them
0:54:31 > 0:54:33don't know what they're getting.
0:54:33 > 0:54:37As far as they're concerned, the place is just being renovated.
0:54:37 > 0:54:43In essence, it is, because Imran's still determined to keep it as a house and will fit it out as such.
0:54:43 > 0:54:45So what does he think all this is likely to cost?
0:54:45 > 0:54:50My brothers have spent in the region of £2,000 so far.
0:54:50 > 0:54:54And they're looking at between £7,000 and £10,000
0:54:54 > 0:54:55to complete the whole house.
0:54:55 > 0:55:01Most of that will go on the bathroom, kitchen and laminate flooring.
0:55:01 > 0:55:05That £10,000 spend will take Imran and his brothers' costs
0:55:05 > 0:55:08up to around £100,000
0:55:08 > 0:55:13to make their fairly large play-homework-office annexe.
0:55:13 > 0:55:16But will it be an investment for their children's future as well?
0:55:16 > 0:55:19What do two local estate agents think?
0:55:23 > 0:55:28I think from top to bottom it does need...regutting,
0:55:28 > 0:55:32and, you know, new bathroom, new kitchen, radiators, double glazing,
0:55:32 > 0:55:36fully decorating, everything.
0:55:36 > 0:55:40This development needs a total refurbishment from top to bottom.
0:55:40 > 0:55:44Even the outside and the front needs to be renovated as well.
0:55:44 > 0:55:47Although there's clearly still a lot to do,
0:55:47 > 0:55:50with approximately £100,000 invested here,
0:55:50 > 0:55:53has Imran actually landed himself a good investment?
0:55:53 > 0:55:56I value this at around £150,000.
0:55:56 > 0:55:58Um, once the total works is completed,
0:55:58 > 0:56:01I would value this property at around £150,000.
0:56:01 > 0:56:03Ah, pretty encouraging.
0:56:03 > 0:56:07So, despite not looking at this as a money-making venture,
0:56:07 > 0:56:09Imran seems to have done pretty well.
0:56:09 > 0:56:11What does he think?
0:56:11 > 0:56:14Good price, but... it's not about the money, though.
0:56:14 > 0:56:17It's about buying the place and keeping it.
0:56:17 > 0:56:21Imran and the family firm have over 40 properties,
0:56:21 > 0:56:26and he personally looks after two care homes and a day nursery as well.
0:56:26 > 0:56:28So what's next?
0:56:28 > 0:56:33Take over the world! I want to expand as much as I can in the scale I've got.
0:56:33 > 0:56:37# Everybody wants to rule the world... #
0:56:37 > 0:56:42So, Imran won't be playing snooker or table tennis with the kids any time soon.
0:56:42 > 0:56:49He's going to be far too busy building his ever-growing property portfolio.
0:56:52 > 0:56:57Well, we hope the bargain hunter in you has picked up a few tips on today's show.
0:56:57 > 0:57:00Yes. Maybe next time it'll be you buying your home under the hammer.
0:57:00 > 0:57:02- See you then.- Goodbye.- Bye.
0:57:13 > 0:57:15Subtitles by Red Bee Media Ltd
0:57:15 > 0:57:17E-mail subtitling@bbc.co.uk