0:00:00 > 0:00:03Hello! Whether you're looking for a lucrative property development,
0:00:03 > 0:00:07or your dream home, you could find it in the auction room.
0:00:07 > 0:00:10In these challenging times, there are still bargains to be had
0:00:10 > 0:00:13as long as you navigate the pitfalls!
0:00:13 > 0:00:15Let us show you the ropes.
0:00:40 > 0:00:44A nod of the head, a wave of the catalogue, even a slight wink,
0:00:44 > 0:00:48no matter how you get the auctioneer's attention, as long as you bid.
0:00:48 > 0:00:51Today, we meet some people who did just that.
0:00:51 > 0:00:54Which properties caught their eye? Take a look.
0:00:55 > 0:01:00Judging by first impressions of this Manchester house, there's a bit of work to do!
0:01:03 > 0:01:04Right!
0:01:06 > 0:01:11This one-bed top-floor flat in London has a bathroom and a kitchen.
0:01:11 > 0:01:14And a very, very big room.
0:01:15 > 0:01:18And in Airdrie, this former hairdressing salon
0:01:18 > 0:01:21is in serious need of a brush-up and restyle!
0:01:21 > 0:01:25You expect some middle-aged lady with a blue rinse to come out of that!
0:01:26 > 0:01:28All these properties went to auction.
0:01:28 > 0:01:33We find out who bought them and what they paid when they went under the hammer.
0:01:33 > 0:01:34Sold!
0:01:40 > 0:01:45This is the town of Middleton, once famous for its silk industry.
0:01:45 > 0:01:48Middleton is just five miles from Manchester
0:01:48 > 0:01:52but the property I'm here to see could be a world away from that big city.
0:01:52 > 0:01:56The property I'm here to see is a three-bed end-of-terrace.
0:01:56 > 0:02:01Sounds quite cottagey. Had a guide price of 50,000 quid, and this is it.
0:02:01 > 0:02:06Straightaway I'm seeing the rendering outside needs a bit of sorting out.
0:02:06 > 0:02:09So it's not a good start. Let's hope it gets better inside.
0:02:14 > 0:02:16Right!
0:02:18 > 0:02:19That's not a good start, is it?
0:02:19 > 0:02:21Oops!
0:02:21 > 0:02:27Well... That's the front door! Anyway, put that back.
0:02:27 > 0:02:31There we go. Nobody saw that, did they? Not to worry.
0:02:31 > 0:02:33Through into the property,
0:02:33 > 0:02:37built in the late 1740s, 1800s kind of period.
0:02:37 > 0:02:42Interesting entrance hall, a big area.
0:02:42 > 0:02:46Quite surprising for what, on the outside, seems like a small cottage.
0:02:46 > 0:02:51Stairs up to the bedrooms. Not a bad place for those, though they are quite narrow.
0:02:51 > 0:02:54Front living room. Through to the rear of the property.
0:02:54 > 0:02:56Still can't get over that door!
0:02:56 > 0:03:00Through to the rear, where there's the kitchen, tired and dated.
0:03:00 > 0:03:04From the outside, it looks like it might have lots of character
0:03:04 > 0:03:09but my concern at this early stage is that a lot of the character has been ripped out.
0:03:09 > 0:03:12And you need a new door!
0:03:12 > 0:03:14# I hear you knockin'
0:03:16 > 0:03:19# But you can't come in #
0:03:19 > 0:03:22Just off the kitchen is a spacious rear reception area
0:03:22 > 0:03:26with a bonus of patio doors out onto the back garden.
0:03:26 > 0:03:29However, it obviously needs redecoration,
0:03:29 > 0:03:32new flooring, and the electric heating should be updated.
0:03:33 > 0:03:38The front reception room is also a good size, but needs even more care and attention.
0:03:38 > 0:03:43Sadly, this isn't some kind of funky wall painting going on here.
0:03:43 > 0:03:48This is, actually, as you can see, pretty nasty damp.
0:03:48 > 0:03:52Question is, is it rising or penetrating? Coming up or coming through?
0:03:52 > 0:03:57Well, the floor is actually pretty solid, so there may not be a damp-proof membrane.
0:03:57 > 0:04:03But having seen the state of the gutters outside, I guess it's coming through the walls.
0:04:03 > 0:04:06It could be as simple as replacing those gutters
0:04:06 > 0:04:08and allowing the house to naturally dry out.
0:04:11 > 0:04:12So, lots of work to be done.
0:04:12 > 0:04:15And it doesn't end with the ground floor.
0:04:15 > 0:04:20So, upstairs, three bedrooms. Surprisingly two really good-sized ones,
0:04:20 > 0:04:23one at the front, one at the back, and a smaller box room.
0:04:23 > 0:04:27The layout here, though, is crying out for something to be done.
0:04:27 > 0:04:31You've got this strange sort of landing here.
0:04:31 > 0:04:34It's very much at the expense of the bathroom, which isn't huge.
0:04:34 > 0:04:40So I would move this wall maybe out to here, take this wall behind me down,
0:04:40 > 0:04:44sacrificing some space in what is already a small bedroom, make it slightly smaller,
0:04:44 > 0:04:48so you shift the landing area to here.
0:04:48 > 0:04:53It's not ideal cos you're coming straight out of a bedroom down into the stairs. I don't know about that.
0:04:53 > 0:04:58But a bit of playing around here would dramatically improve this upstairs space.
0:04:59 > 0:05:02- # A change - A change would do you good
0:05:02 > 0:05:06- # Would do you good - A change would do you good
0:05:06 > 0:05:09This is a surprisingly spacious cottage inside.
0:05:09 > 0:05:13And there's potential to add even more living space.
0:05:13 > 0:05:15The garden is quite large
0:05:15 > 0:05:18and there's a substantial section to the side.
0:05:18 > 0:05:21That should make it easy to add an extension,
0:05:21 > 0:05:24should the necessary planning permissions be approved.
0:05:24 > 0:05:27We now interrupt this property item for an urgent road report.
0:05:27 > 0:05:30The road outside the property.
0:05:30 > 0:05:34It's unadopted. That means the council aren't responsible for its upkeep.
0:05:34 > 0:05:37There may not be any lighting or proper drainage
0:05:37 > 0:05:40and it's down to the people who live in the road to look after the road.
0:05:40 > 0:05:45Any money spent, if you bought that place, you'd be partly responsible for.
0:05:45 > 0:05:47Something for your solicitor to check out.
0:05:47 > 0:05:50# Arm in arm
0:05:50 > 0:05:52# Hand in hand
0:05:52 > 0:05:56# We all stand together. #
0:05:56 > 0:06:01So, was this property that went to auction guided at £50,000
0:06:01 > 0:06:03a good buy?
0:06:03 > 0:06:06A local estate agent may have the answer.
0:06:06 > 0:06:10The property itself is a very good property. It needs refurbishment.
0:06:10 > 0:06:15Once that's done, it'll be very, very desirable
0:06:15 > 0:06:18and easy to sell or rent out, whichever one they decide to do.
0:06:18 > 0:06:22With a little rejigging upstairs, it could be perfect.
0:06:22 > 0:06:24Worth extending?
0:06:24 > 0:06:30Personally, I wouldn't extend it because of the risk of going over the ceiling price.
0:06:30 > 0:06:36And then it's difficult to sell the property so I'd stick with the general layout as it is.
0:06:40 > 0:06:44Might this be a property you could let out, and what rent could you achieve?
0:06:44 > 0:06:49Basically, the area at the moment, the rental market is booming.
0:06:49 > 0:06:51So once this has been refurbished,
0:06:51 > 0:06:55it would fetch between 450 and 500 per calendar month.
0:06:55 > 0:06:57How about sale value once renovated?
0:06:57 > 0:07:01I'd recommend putting it on the market for round about £100,000.
0:07:02 > 0:07:06So, a nice enough little property, and I love the location.
0:07:06 > 0:07:09Not too much work required to get it sorted out
0:07:09 > 0:07:13and I think you'd have a very desirable property to sell on or live in.
0:07:13 > 0:07:16Let's see who fancied it when it went under the hammer.
0:07:16 > 0:07:19Lot 38. A vacant three-bed terraced property.
0:07:19 > 0:07:21Give me 50 and we're away. £50,000.
0:07:21 > 0:07:24No less. 50 bid. Thank you. 50,000.
0:07:24 > 0:07:2755. Do I see 60?
0:07:27 > 0:07:2960. £60,000.
0:07:29 > 0:07:31Lady's bid at 60,000.
0:07:31 > 0:07:3261, anywhere?
0:07:32 > 0:07:36Sorry? 60, madam. 62, sir.
0:07:36 > 0:07:3862. 63.
0:07:38 > 0:07:40At the back. 63. 64.
0:07:40 > 0:07:4165.
0:07:41 > 0:07:4366?
0:07:43 > 0:07:4566,000. 67.
0:07:45 > 0:07:4767. 68, anywhere?
0:07:47 > 0:07:4967 seated. 68?
0:07:49 > 0:07:50No?
0:07:50 > 0:07:54No? 68. New bid. 68,000, then. 69?
0:07:54 > 0:07:5669.
0:07:56 > 0:07:5870? 70,000 seated, then.
0:07:58 > 0:08:0171. 71,000. 72.
0:08:01 > 0:08:0472. 72,000. Do you want to come back in? 72,500.
0:08:04 > 0:08:0572,500. 73.
0:08:05 > 0:08:0773. 73,500.
0:08:08 > 0:08:10No? At 73,000, then,
0:08:10 > 0:08:12for the first time, lady seated.
0:08:12 > 0:08:1673,000 for the second time. Are we all done at £73,000?
0:08:17 > 0:08:22And with the thumbs up, that final bid of 73,000 came from Barbara,
0:08:22 > 0:08:26who's a property developer with 20 years experience and lives in Italy.
0:08:26 > 0:08:28She returned there after the auction.
0:08:28 > 0:08:33# I'm leavin' on a jet plane
0:08:33 > 0:08:37# Don't know when I'll be back again #
0:08:37 > 0:08:40Unfortunately, Barbara's flight from Italy back to Manchester
0:08:40 > 0:08:43was cancelled due to volcanic ash, so instead,
0:08:43 > 0:08:47I met up with her right-hand man in the UK, Peter.
0:08:47 > 0:08:49He's worked with Barbara for about three years
0:08:49 > 0:08:53and project manages her rental portfolio in this country.
0:08:53 > 0:08:56'Peter, good to meet you. Congratulations.'
0:08:56 > 0:08:59Tell me why you bought this place.
0:08:59 > 0:09:01Barbara said to me a couple of months ago
0:09:01 > 0:09:05it's not all buy to rent, right, buy to let.
0:09:05 > 0:09:08If she saw something she particularly liked,
0:09:08 > 0:09:11then she would go for a buy to sell.
0:09:11 > 0:09:16So I said, "Now you've told me that, I'll look at different things."
0:09:20 > 0:09:24Peter thought there was something special about this little house.
0:09:24 > 0:09:29I saw the house in the brochure and I thought, "That's unusual."
0:09:29 > 0:09:31That was my first impression of it.
0:09:31 > 0:09:34When I actually came to view it and saw the fields,
0:09:34 > 0:09:37the side garden and everything, I thought it was lovely.
0:09:37 > 0:09:41- I'd be quite comfortable living here, once it's done up. - It's really nice.
0:09:41 > 0:09:46- It's off the main road. - It has character.- It's quite old. One of the first in the area.
0:09:46 > 0:09:50It's like me. I'm quite old but I clean up well, scrub up well!
0:09:50 > 0:09:52And this will do the same.
0:09:55 > 0:10:00Barbara and Peter have set a budget of 15 to £17,000 for the renovation.
0:10:00 > 0:10:03They aim to have it completed in eight weeks time.
0:10:05 > 0:10:08What are you going to do to it, exactly?
0:10:08 > 0:10:15I don't like the top of the stairs where you can walk out of a bedroom and fall down the stairwell.
0:10:15 > 0:10:17So we'll be improving that area.
0:10:17 > 0:10:22I toyed with the idea of putting the existing bathroom as an en-suite
0:10:22 > 0:10:26and then the area on the landing, which is quite large,
0:10:26 > 0:10:29and useless, making it into a bathroom.
0:10:29 > 0:10:31But it's not necessary.
0:10:31 > 0:10:34Brighten the place up, that's what we'll do.
0:10:34 > 0:10:37Knock a few walls about, brighten the place up.
0:10:37 > 0:10:42New kitchen, new bathroom, new central heating, full central heating.
0:10:42 > 0:10:44Clean up the garden.
0:10:44 > 0:10:48New windows. It won't look the same next time you come.
0:10:51 > 0:10:53I'm getting excited about it already.
0:10:53 > 0:10:58Peter really seems to know his stuff and I'm sure he's going to do a great job here.
0:10:58 > 0:11:01The only serious niggle is that road outside.
0:11:04 > 0:11:07One issue is the unadopted road, isn't it?
0:11:07 > 0:11:10- Yeah.- What are your thoughts on that?
0:11:10 > 0:11:12I don't think it's an issue at all.
0:11:12 > 0:11:17Some unadopted roads are difficult. Pot-holes, and they're a mess.
0:11:17 > 0:11:20A menace. This road, I think, doesn't come into that category.
0:11:20 > 0:11:23I don't see a problem with the unadopted road.
0:11:23 > 0:11:25I don't see it affecting a sale.
0:11:25 > 0:11:30But the owner is responsible for a share of what it costs to maintain the road.
0:11:30 > 0:11:31Yes.
0:11:32 > 0:11:38That fact should definitely not be ignored by any potential buyer.
0:11:38 > 0:11:42But I feel Peter may be right here because the road does look well maintained.
0:11:44 > 0:11:49- Congratulations. We look forward to seeing how you get on.- Thank you, Martin. Nice meeting you.
0:11:49 > 0:11:51You, too.
0:11:51 > 0:11:56It seems Peter and Barbara have a great working relationship going on here.
0:11:56 > 0:11:58This step away from the buy-to-let market
0:11:58 > 0:12:01has obviously set their creative juices flowing.
0:12:01 > 0:12:05You can find out how they got on later in the show.
0:12:20 > 0:12:25Can't afford leafy West Hampstead? I'm in Kilburn, north-west London,
0:12:25 > 0:12:27which could be a very good alternative.
0:12:27 > 0:12:30Properties tend to be ten per cent cheaper here.
0:12:30 > 0:12:36The average price for a property on this road is £255,000.
0:12:36 > 0:12:42So I am delighted to find a property that had a guide price of 200,000.
0:12:42 > 0:12:45Now, it's not the entire house, I'm afraid,
0:12:45 > 0:12:48it's a studio flat and it's on the third floor.
0:12:50 > 0:12:54But it's a flat in an impressive house with a lovely frontage
0:12:54 > 0:12:57and those sashed windows complete the effect.
0:12:57 > 0:13:00Phew! So I managed those flights of stairs.
0:13:00 > 0:13:04Ooh, a nice light space, a fantastic high skylight up there.
0:13:04 > 0:13:06Got a bathroom, a kitchen,
0:13:06 > 0:13:10and a very, very big room. I like it.
0:13:10 > 0:13:13You've got three fabulous windows.
0:13:13 > 0:13:16Now, this space is wasted.
0:13:16 > 0:13:22I really think what would work here would be if you put a partition wall along here,
0:13:22 > 0:13:29a doorway here, come in here, you could call this a separate bedroom. Then you've got a one-bed flat.
0:13:29 > 0:13:32That would really increase its saleability
0:13:32 > 0:13:35and add a lot of value.
0:13:36 > 0:13:39I always like a project that's going to make a healthy return.
0:13:39 > 0:13:41By adding a wall and a door,
0:13:41 > 0:13:43the new owner could do just that.
0:13:43 > 0:13:46The kitchen isn't sparkling, but it's a good size,
0:13:46 > 0:13:50and you could think about replacing the doors and worktops.
0:13:50 > 0:13:53The bathroom is a decent size.
0:13:53 > 0:13:58- #- ..But never have I been so blue...- #
0:13:58 > 0:14:02Well, it may look blue, but it certainly isn't melancholy.
0:14:02 > 0:14:05It appears almost new, which is a huge bonus
0:14:05 > 0:14:09and will help cut down on the replacement cost of a new suite
0:14:09 > 0:14:11plus the labour costs to install it.
0:14:15 > 0:14:19It could be just the detail that tips the balance for any investor
0:14:19 > 0:14:24tempted by this top-floor flat that went under the hammer guided at £200,000.
0:14:26 > 0:14:28Now, here's a little riddle for you.
0:14:28 > 0:14:32Nearly everybody has them, but they're not all the same.
0:14:32 > 0:14:34What I'm talking about is neighbours.
0:14:34 > 0:14:36According to a recent study,
0:14:36 > 0:14:39neighbours have a profound effect on property prices.
0:14:39 > 0:14:43If they're nice, they can add as much as £5,000.
0:14:43 > 0:14:45But if they're bad and antisocial,
0:14:45 > 0:14:50they can reduce the price by a whopping 30 grand!
0:14:50 > 0:14:52Well, it doesn't appear to be an issue here.
0:14:52 > 0:14:56Switched-on buyers are asking about the neighbours during viewings
0:14:56 > 0:15:00and many do their own detective work before making an offer.
0:15:00 > 0:15:05Sales often collapse because a buyer finds out there are noisy neighbours in the vicinity.
0:15:05 > 0:15:09So do your own detective work before the auction wherever possible
0:15:09 > 0:15:12as it could pay dividends further down the line.
0:15:12 > 0:15:15But there is only so much preparation you can do.
0:15:15 > 0:15:19At the end of the day, the market will decide how much the property is worth.
0:15:19 > 0:15:21What's the opinion of a local estate agent?
0:15:23 > 0:15:26Kilburn is very well served for transport.
0:15:26 > 0:15:31We have two tube stations, various buses, and the West End is 15 minutes' car journey.
0:15:31 > 0:15:34Great location. What about the flat?
0:15:34 > 0:15:39It's a good-sized unit. It would be a lot easier to sell or rent as a one-bedroomed unit.
0:15:39 > 0:15:41That could be quite easily achieved.
0:15:41 > 0:15:46Leaving the layout as it is and doing a simple refurbishment
0:15:46 > 0:15:53means this studio flat guided at 200,000 could resell for about 210 to 215 grand.
0:15:53 > 0:15:57Rental value could be around 900 a calendar month.
0:16:01 > 0:16:05But what if the new owner were able to turn this into a one bed?
0:16:05 > 0:16:08How much could it command in rental then?
0:16:08 > 0:16:11Round about 1,100 per calendar month.
0:16:11 > 0:16:15How much would that kind of refurbishment affect the sale price?
0:16:15 > 0:16:20As a one-bedroom unit, we would put this on the market for £249,000.
0:16:20 > 0:16:26It's a studio flat, but a partition wall could make it a one-bedroomed property
0:16:26 > 0:16:29and increase its value by as much as £40,000.
0:16:29 > 0:16:31I think it's a good one to go for.
0:16:31 > 0:16:34Let's see who else thought so as we go to auction.
0:16:34 > 0:16:39Lot 75. Of interest to owner-occupiers and rental investors.
0:16:39 > 0:16:42A well-located good-sized studio flat.
0:16:42 > 0:16:44Someone want to start me at 200?
0:16:44 > 0:16:48If not, you tell me. Looking for two. 200,000.
0:16:48 > 0:16:50150?
0:16:50 > 0:16:53Let's start there. It can only go upwards.
0:16:53 > 0:16:56150 I've got. Anybody else for lot 75.
0:16:56 > 0:16:58I've got 150,000.
0:16:58 > 0:17:01155. 160.
0:17:01 > 0:17:02165.
0:17:02 > 0:17:05170. 175. 180.
0:17:05 > 0:17:07185.
0:17:07 > 0:17:09190.
0:17:09 > 0:17:10195.
0:17:11 > 0:17:12200.
0:17:12 > 0:17:15205? 210?
0:17:15 > 0:17:17No?
0:17:17 > 0:17:18206?
0:17:18 > 0:17:20OK. Leave you to it.
0:17:20 > 0:17:23It's with you, sir. Bid's at £205,000.
0:17:23 > 0:17:25Against the gentleman on my left.
0:17:25 > 0:17:28Anybody else for lot 75?
0:17:28 > 0:17:30205 for the first.
0:17:30 > 0:17:32206. Nearly.
0:17:32 > 0:17:33207?
0:17:33 > 0:17:35208? No?
0:17:35 > 0:17:37You said that last time. Right.
0:17:37 > 0:17:41It's with you. £207,000 against the gentleman here.
0:17:41 > 0:17:43207 for the first.
0:17:43 > 0:17:46207 for the second.
0:17:46 > 0:17:48207 for the third and final time. All done?
0:17:48 > 0:17:50Sold. 207. Well bought.
0:17:50 > 0:17:56That successful bid of 207,000 came from Francois.
0:18:01 > 0:18:05He's a French architect making a start in property developing.
0:18:05 > 0:18:10He's on the lookout for investment properties in the UK's capital city.
0:18:12 > 0:18:17I went to the flat to meet him and hear exactly what he had in mind.
0:18:17 > 0:18:20'Francois, congratulations!'
0:18:20 > 0:18:24- Very nice to meet you today. - Thank you. Me, too.- What was it like at the auction for you?
0:18:24 > 0:18:29I mean, it was not the first time for me because I used to buy at auction before in France.
0:18:29 > 0:18:33But it was still exciting. Because to buy at auction is exciting.
0:18:33 > 0:18:38- No, it was great.- How does it compare, an auction in England, to one in France? The same?
0:18:38 > 0:18:42It's quite similar with a few little differences.
0:18:42 > 0:18:44But the man talks the same way.
0:18:44 > 0:18:48- Whereabouts are you from in France? - Paris.- Are you a property developer?
0:18:48 > 0:18:51I'm trying. I'm beginning.
0:18:51 > 0:18:55I'll start with this one and hope to keep on doing this kind of business.
0:18:55 > 0:18:58Why were you attracted to this property?
0:18:58 > 0:19:03I wasn't looking in a particular place. I was more looking for a flat that needed modernisation.
0:19:03 > 0:19:07I just took the auction catalogue and it brings me here.
0:19:07 > 0:19:11I think it's a good location and it has potential.
0:19:11 > 0:19:16Not far from the centre, there's a tube near here. I think it can be something great here.
0:19:16 > 0:19:18And a fantastic cafe at the end of the road.
0:19:18 > 0:19:20- I didn't know that. - You didn't know?
0:19:20 > 0:19:26- I didn't know.- I had lunch there today.- We'll have a coffee together! OK!- An invitation.- Thank you!
0:19:27 > 0:19:31'Wow! Just a minute into our chat and I've already got a date!
0:19:31 > 0:19:37'If Francois is such a fast mover at property developing, he'll definitely be a success!
0:19:37 > 0:19:40'But what's his bargain-detecting radar like?'
0:19:40 > 0:19:43What was the potential you saw in this flat?
0:19:43 > 0:19:48When I came here the first time I was quite surprised because it's a studio
0:19:48 > 0:19:51but I thought it can convert into one bedroom easily.
0:19:51 > 0:19:57By maybe putting a wall here would be a good way to add value to the flat.
0:19:57 > 0:19:59Absolutely. That is exactly what I thought.
0:19:59 > 0:20:03- It's almost like a waste, this room. - Yes.- It's too big.- Yes.
0:20:03 > 0:20:07- But the bedroom will be probably too small.- Yeah,
0:20:07 > 0:20:12but in England I was surprised to see that people live in very small rooms here.
0:20:12 > 0:20:17So I think we can do it. If we sell it like a studio, I don't think we can do a profit.
0:20:17 > 0:20:21But if we try to do it well and convert it to one bedroom,
0:20:21 > 0:20:23I think it has potential.
0:20:29 > 0:20:32'Let's hope Francois' grip on property developing
0:20:32 > 0:20:34'is as good as his English.
0:20:34 > 0:20:37'Not that he'll need it with his team of builders.'
0:20:38 > 0:20:41Who are you going to employ to do the work here?
0:20:41 > 0:20:45I'm an architect, and my father, who I work with, is also an architect.
0:20:45 > 0:20:47We have our own company in Paris.
0:20:47 > 0:20:51So we'll bring some people from there and they will do the works.
0:20:51 > 0:20:55How long do you think it will take to get this flat up and running?
0:20:55 > 0:20:58I don't think there's too much to do. I think about two weeks.
0:20:58 > 0:21:00- Really?- Not too much, yeah.
0:21:00 > 0:21:04So is it going to be stylish? Very chic and French and stylish?
0:21:04 > 0:21:05I hope it is!
0:21:05 > 0:21:08It's a good place, but it's not South Kensington!
0:21:08 > 0:21:12So you cannot do... You have to find a good balance.
0:21:12 > 0:21:15No, we'll do something clean, decent and very attractive.
0:21:15 > 0:21:19- What's your budget?- Around £40,000.
0:21:19 > 0:21:23£40,000?! That's a really healthy budget!
0:21:23 > 0:21:26Yeah, but if you want to do something beautiful,
0:21:26 > 0:21:30you have to spend a little bit more money sometimes.
0:21:30 > 0:21:34'40,000 does seem a lot to renovate this flat.
0:21:34 > 0:21:37'But Francois also has plans for a loft conversion.
0:21:40 > 0:21:44'The flat is leasehold, but given that the loft space belongs to the freeholder,
0:21:44 > 0:21:48'Francois must get their permission before he extends upwards.
0:21:48 > 0:21:51'He may even have to buy out the freeholder.'
0:21:51 > 0:21:55- Do you see yourself living in this flat?- I don't think I will
0:21:55 > 0:21:57because I'll be here very little time.
0:21:57 > 0:22:02I want to move on, you know. I want to sell it and buy another property.
0:22:02 > 0:22:03Maybe bigger, you know?
0:22:03 > 0:22:08- Francois, good luck and I hope it goes really well. Thank you. - Thanks very much, Lucy.
0:22:08 > 0:22:11This is Francois' stepping stone
0:22:11 > 0:22:16and luckily for him, he's got a team of French builders ready to take this on.
0:22:16 > 0:22:18But will they do it in just two weeks?
0:22:18 > 0:22:22You can find out how it all goes later in the programme.
0:22:22 > 0:22:27Coming up: this former hair salon in Airdrie is curled up and needs a comb out.
0:22:27 > 0:22:32But it's the square footage that matters, so for a small property, not bad.
0:22:33 > 0:22:37We go back to London to see how Francois from France fared.
0:22:38 > 0:22:42I was a bit nervous at the beginning, but it's OK. It went fine.
0:22:44 > 0:22:46First, back to Greater Manchester
0:22:46 > 0:22:49where things have moved fast.
0:22:49 > 0:22:52I was a bit surprised when Barbara turned up and said she'd sold it.
0:22:55 > 0:23:00Time now to see what's happened to this house in Middleton, Greater Manchester.
0:23:00 > 0:23:05Property developer Barbara paid £73,000 for it at auction.
0:23:07 > 0:23:13As a result of the volcanic ash, she'd been unable to fly back and show us the house.
0:23:13 > 0:23:15That was left to her project manager Peter,
0:23:15 > 0:23:17who she's worked with for three years.
0:23:18 > 0:23:22- I'd be quite comfortable living here.- It's nice, and it's off the main road.
0:23:22 > 0:23:27- It's got character.- It's quite old. One of the first houses in the area.
0:23:27 > 0:23:31It's like me. I'm quite old but I clean up well, scrub up well!
0:23:32 > 0:23:38Now it's three months later. Barbara has made it back from Italy this time
0:23:38 > 0:23:40so now we can meet up with her and Peter.
0:23:40 > 0:23:44The tired, grubby property has now been beautifully decorated.
0:23:44 > 0:23:47It's not just been a cosmetic makeover.
0:23:47 > 0:23:50The layout of the house has also changed.
0:23:56 > 0:23:59The bedrooms are slightly larger.
0:24:00 > 0:24:03The door into the living room has been moved.
0:24:04 > 0:24:07And a conservatory has been added.
0:24:08 > 0:24:12Although Barbara has a large portfolio of rental properties,
0:24:12 > 0:24:18the plan was to sell this place. Unusually, she found a buyer just as work was beginning.
0:24:18 > 0:24:23We wouldn't normally be selling it before we've started the work.
0:24:23 > 0:24:24This is a one-off.
0:24:24 > 0:24:28I just got a call saying, "Have you got anything in the north?"
0:24:28 > 0:24:31I said, "Yes, I happen to have one."
0:24:31 > 0:24:35We sent them a few photographs, they came up, the price was right,
0:24:35 > 0:24:37so that was it.
0:24:37 > 0:24:41I was a bit surprised when Barbara turned up and said she'd sold it,
0:24:41 > 0:24:43before I'd got it half done!
0:24:43 > 0:24:46But then you have to step back a bit and put client's extras.
0:24:46 > 0:24:51They want their own feeling in the house. Put their own stamp on the house.
0:24:51 > 0:24:55The house has been fitted out according to the specification of the buyers.
0:24:55 > 0:24:58The kitchen reflects their taste.
0:24:58 > 0:25:03We had a very long, narrow kitchen here, with not a lot in it.
0:25:03 > 0:25:06It wasn't working very well. There wasn't a utility room.
0:25:06 > 0:25:09The clients were very happy to open it all up.
0:25:09 > 0:25:14They chose slightly different units. A slightly higher spec.
0:25:14 > 0:25:19And of course the cooker is rather nice!
0:25:19 > 0:25:23Barbara knows about kitchens as she was a top kitchen designer for many years.
0:25:23 > 0:25:29She normally does the design for those and the bathrooms of her properties,
0:25:29 > 0:25:31as well as the colour schemes.
0:25:31 > 0:25:34But this time, the buyer had a big input.
0:25:34 > 0:25:37However, the structural work, as ever, was down to Peter.
0:25:37 > 0:25:40There's been quite a substantial change up here
0:25:40 > 0:25:46because the doorway from this area was too close to the well, the top of the stairs.
0:25:46 > 0:25:49The door from this room, this wall was over here.
0:25:49 > 0:25:52And what you did was walk past it
0:25:52 > 0:25:55then turn left and come into the bedroom to get in there.
0:25:55 > 0:26:00A complete waste of that space. So I wanted that space on the landing
0:26:00 > 0:26:03as a computer area cum viewing area.
0:26:03 > 0:26:06So I pinched some off the room wall
0:26:06 > 0:26:11and we then had to put it back by moving that third bedroom back.
0:26:11 > 0:26:15To make this as safe as I possibly could,
0:26:15 > 0:26:18then we opened it up and put it on a 45 degree angle.
0:26:18 > 0:26:22Much safer. That 45 degree angle has really helped.
0:26:22 > 0:26:26Now you don't step out of the bedroom straight onto the stairs.
0:26:26 > 0:26:29Outside, all the rubbish in the back garden has been cleared.
0:26:29 > 0:26:34And on the side, the conservatory is a lovely addition.
0:26:34 > 0:26:36The plot looks so much bigger
0:26:36 > 0:26:40and this terrible house has been truly transformed.
0:26:40 > 0:26:42So, is it now complete?
0:26:42 > 0:26:45It's 99 per cent finished.
0:26:45 > 0:26:49We had a bit of a problem with the tiler earlier in the week.
0:26:49 > 0:26:52He quite severely injured his back
0:26:52 > 0:26:56so it was a mad rush yesterday to try and get the grouting done
0:26:56 > 0:27:02but unfortunately he couldn't just get on the floor and lay that conservatory floor.
0:27:02 > 0:27:05The rotten timbers have been replaced.
0:27:05 > 0:27:09New guttering has been installed and the windows replaced throughout.
0:27:09 > 0:27:14Those damp problems were tracked down to a leak in the guttering which was easy to fix.
0:27:14 > 0:27:16But it all sounds expensive.
0:27:16 > 0:27:19So what effect has it had on the budget?
0:27:19 > 0:27:24Did they come in under the £18,000 that Peter had projected
0:27:24 > 0:27:26or did the new owners fund the extras?
0:27:26 > 0:27:28The budget, yes.
0:27:28 > 0:27:32We fixed on a budget that we would include on the project.
0:27:32 > 0:27:37Then they said, yes, but we want this, this, this and this.
0:27:37 > 0:27:40So obviously the budget did go up.
0:27:40 > 0:27:42We agreed a figure of 20,000
0:27:42 > 0:27:45and that, basically, is what we have spent.
0:27:45 > 0:27:48So Barbara and Peter did keep control of the budget
0:27:48 > 0:27:52as paying for the extra work was down to the new owners.
0:27:52 > 0:27:57Time to see how two property experts familiar with the local market
0:27:57 > 0:27:59rate this refurbishment.
0:27:59 > 0:28:02It's above what I expected, to be quite honest with you.
0:28:02 > 0:28:06It's done to a very good standard. Rent or sell, it'll go no problem.
0:28:06 > 0:28:10The property is great. The flow is magnificent. The look is good.
0:28:10 > 0:28:14I love the little loft section upstairs on the first floor.
0:28:15 > 0:28:19I like what they've done to the kitchen. It's to a high spec.
0:28:19 > 0:28:24The conservatory was necessary as there wasn't loads of living space downstairs.
0:28:24 > 0:28:27It's an extra reception room which is always a positive thing.
0:28:27 > 0:28:30Barbara has numerous other buy-to-let properties
0:28:30 > 0:28:35and although this one has now been sold, how much income could it have produced?
0:28:36 > 0:28:40Looking into it, between 450 and £500 per calendar month.
0:28:40 > 0:28:43The rental market is booming at the moment.
0:28:43 > 0:28:49A very high demand. I'd expect it to achieve between 450 and £500 per calendar month.
0:28:49 > 0:28:52I think £500 per calendar month would be fine.
0:28:52 > 0:28:54That's the norm around here.
0:28:54 > 0:28:58But we weren't going to let this particular property.
0:28:58 > 0:29:00No, this one's a buy-to-sell.
0:29:00 > 0:29:04Barbara paid £73,000 at the auction,
0:29:04 > 0:29:07and has spent just over £20,000 on it.
0:29:07 > 0:29:12That makes £93,000 in total. So how much is the property now worth?
0:29:12 > 0:29:16I'd recommend putting the property on the market for £129,500
0:29:16 > 0:29:19with a view to achieving about 125,000.
0:29:19 > 0:29:23Initially I considered to market it between 110 and 115,
0:29:23 > 0:29:30but because of the standard and how well it is done, I would probably go to 120 to £125,000.
0:29:30 > 0:29:35But Barbara had a buyer from the start who bought the house for 120,000.
0:29:35 > 0:29:39So she's made a pre-tax profit of about 27,000.
0:29:39 > 0:29:44Not quite as high as she might have got, but is she happy with it?
0:29:44 > 0:29:47It's about what we imagined, in actual fact.
0:29:47 > 0:29:51So we had foreseen around about that figure.
0:29:51 > 0:29:56Well, sounds like another successful venture for this development double-act.
0:29:56 > 0:29:58Are they up for another one?
0:29:58 > 0:30:00Yes, we'll do it again. We've had fun.
0:30:00 > 0:30:05In doing so, they've converted this into a beautiful house.
0:30:15 > 0:30:21This is Airdrie, 15 miles east of Scotland's great city of Glasgow.
0:30:21 > 0:30:25Today I've come to this commuter town to see a commercial property.
0:30:27 > 0:30:32Right in the centre of Airdrie, near the train station, is the property I'm here to see.
0:30:32 > 0:30:34A very interesting one, this one.
0:30:34 > 0:30:36It's a former hairdresser's.
0:30:36 > 0:30:42Until recently, it was on the market for £100,000 but how times have changed,
0:30:42 > 0:30:46because at a recent auction, it was guided at just 55,000.
0:30:46 > 0:30:48Sounds like a snip to me!
0:30:50 > 0:30:54# Got a devil's haircut in my mind
0:30:54 > 0:30:58# Got a devil's haircut in my mind #
0:30:59 > 0:31:04Well, it may sound like a bit of a snip, but it's actually a bit of a tip!
0:31:04 > 0:31:07It's been lying empty for well over two years
0:31:07 > 0:31:09and is clearly falling into disrepair.
0:31:09 > 0:31:13So it will take some imagination to visualise what's possible here.
0:31:15 > 0:31:17What have we got? Well, one big space, really.
0:31:17 > 0:31:22It's dark and dingy but that's partly because the windows are boarded up.
0:31:22 > 0:31:26There's been a lot of vandalism, which is not good to see.
0:31:26 > 0:31:28But overall not a bad-sized space.
0:31:28 > 0:31:30Look at this!
0:31:30 > 0:31:34You expect some middle-aged lady with a blue rinse to come out of that!
0:31:34 > 0:31:38The old hairdryer. But something that's more serious -
0:31:38 > 0:31:42look at that - mould on the chair. That shows how damp it is in here
0:31:42 > 0:31:46and if you smell it, there's definitely a smell of damp.
0:31:46 > 0:31:49But in terms of space, it's not bad. Very flexible as well.
0:31:49 > 0:31:53All these are stud partition walls, so you can take those out.
0:31:53 > 0:31:58Overall, as with normal commercial properties, it's the square footage that matters.
0:31:58 > 0:32:00So for a small property, not bad.
0:32:01 > 0:32:06In fact, there's about 671 square feet of floor space,
0:32:06 > 0:32:09approximately the size of a two-bed flat.
0:32:09 > 0:32:12Behind the main room are a small kitchenette and loo.
0:32:12 > 0:32:17But back here there are no windows at all, so it's pretty dingy.
0:32:17 > 0:32:20And that damp problem is all too obvious.
0:32:24 > 0:32:28The place hasn't been used for a while and we are below ground level
0:32:28 > 0:32:30so you might expect a bit of damp.
0:32:30 > 0:32:35But nothing like this. That is an indication of much more serious problems.
0:32:35 > 0:32:38I'd want this place checked out by an expert, for sure.
0:32:38 > 0:32:42The renovation budget seems to be rising as much as that damp.
0:32:42 > 0:32:45Because getting that sorted could be rather costly.
0:32:45 > 0:32:48I'm starting to wonder what this space has got going for it,
0:32:48 > 0:32:53even at that relatively low £55,000 guide price.
0:32:53 > 0:32:57Time to head outside and see it in the context of its surroundings.
0:32:59 > 0:33:03For a commercial property, the location couldn't get much better.
0:33:03 > 0:33:07Look around. You've got all sorts of shops, restaurants, bars.
0:33:07 > 0:33:11Absolutely perfect. And the hairdresser's is on the crossroads
0:33:11 > 0:33:13of a busy main road.
0:33:13 > 0:33:18So as far as I'm concerned, the location for this place is definitely a highlight.
0:33:20 > 0:33:23OK. The location seems good.
0:33:23 > 0:33:25But what are the possibilities here?
0:33:28 > 0:33:33The property has Class 1 usage, which basically means you can sell goods from it
0:33:33 > 0:33:36or run it as a hairdresser's or maybe a dry cleaner's.
0:33:36 > 0:33:41It's a fairly broad class of use. To change it would require a lot of planning permission.
0:33:41 > 0:33:45Still, if you don't fancy running it as a shop yourself, think about the rent.
0:33:45 > 0:33:49I reckon this place could generate £15,000 a year.
0:33:49 > 0:33:51Now it's got you thinking!
0:33:54 > 0:33:58So, even if you aren't a dab hand with the scissors and hair gel,
0:33:58 > 0:34:01it looks like you could still make money from this place
0:34:01 > 0:34:03after a full makeover, of course.
0:34:03 > 0:34:10What does a local estate agent, who previously marketed the premises for rental, make of the area
0:34:10 > 0:34:12and the property's potential?
0:34:12 > 0:34:16The premises are in the heart of Airdrie town centre.
0:34:16 > 0:34:19A secondary location.
0:34:19 > 0:34:22We believe that this shop could trade as a hairdresser
0:34:22 > 0:34:26or beauty therapist, or alternatively,
0:34:26 > 0:34:28anyone could get a change of use on it.
0:34:28 > 0:34:32It would make an excellent Class 2 premises, if used as an office.
0:34:32 > 0:34:36So how much could it achieve if rented out?
0:34:36 > 0:34:41We were initially marketing this premises for a rent of £15,000 per annum.
0:34:41 > 0:34:44However, we didn't generate any interest at that level
0:34:44 > 0:34:45so we reduced it to 12,500.
0:34:45 > 0:34:49We went under offer twice, however no-one bit the bait.
0:34:49 > 0:34:52Oh, dear. It really needs that face-lift.
0:34:52 > 0:34:55How much would it take to get the place spruced up?
0:34:56 > 0:35:01My estimate for repairs would be 30 or £40,000
0:35:01 > 0:35:04to bring the premises up to decent specification again.
0:35:05 > 0:35:1140 grand. Added to the guide price of 55,000, that's £95,000
0:35:11 > 0:35:14before any business can even start operating here.
0:35:14 > 0:35:18I'm beginning to see why this place has been empty for so long.
0:35:22 > 0:35:26Well, as an investment, this certainly isn't cut and dried.
0:35:26 > 0:35:30You'd have to work quite hard to make it a "perm"-anent success!
0:35:30 > 0:35:35But if you're thinking about renting this place out, then it could have "fringe" benefits!
0:35:35 > 0:35:38Let's see who agreed with me at the auction.
0:35:42 > 0:35:44So we move straight on to lot 14.
0:35:44 > 0:35:46A vacant retail premises.
0:35:46 > 0:35:50Can we start the bidding for this? I'm looking for 50,000 to start.
0:35:50 > 0:35:5250,000 anywhere?
0:35:52 > 0:35:5440,000, then.
0:35:54 > 0:35:5640 I have. 42.
0:35:56 > 0:35:5944. 46.
0:35:59 > 0:36:0148. 50.
0:36:01 > 0:36:0352. 54.
0:36:03 > 0:36:0556.
0:36:05 > 0:36:0758.
0:36:07 > 0:36:0958. 60?
0:36:10 > 0:36:12I'll take one.
0:36:12 > 0:36:1659? 59 I have. 60? 60 I have. 61.
0:36:16 > 0:36:1862. 63.
0:36:18 > 0:36:1964.
0:36:19 > 0:36:2165.
0:36:21 > 0:36:2466. 67. 68.
0:36:24 > 0:36:2669. 70. 71.
0:36:30 > 0:36:3271 I have. 72?
0:36:32 > 0:36:3373.
0:36:35 > 0:36:37Not at that?
0:36:37 > 0:36:3972,000 I have. I'm looking for 73.
0:36:39 > 0:36:42Are we all done at 72,000?
0:36:42 > 0:36:45Thank you. 74. 75.
0:36:45 > 0:36:48Not at that. It was a single strike.
0:36:48 > 0:36:5174,000 I have. Going once.
0:36:51 > 0:36:53Yes. 74 going twice.
0:36:53 > 0:36:57Third and final time. Sold to the gentleman in the window.
0:36:57 > 0:36:59Thank you very much.
0:37:00 > 0:37:05The winning bid of £74,000 came from Asif, a local developer.
0:37:07 > 0:37:10He specialises in commercial property
0:37:10 > 0:37:12so I can see why this one appealed.
0:37:13 > 0:37:16I met him to find out what his plans are
0:37:16 > 0:37:19to enhance this former salon's subterranean charms!
0:37:21 > 0:37:25Asif, lovely to meet you. Congratulations. Why did you want to buy this place?
0:37:25 > 0:37:29In this particular property I'm looking to do a fast food franchise.
0:37:29 > 0:37:34Why have you gone down the route of putting a fast food outlet in here?
0:37:34 > 0:37:39When I was looking at it before I even bought the premises,
0:37:39 > 0:37:45I ran it past this particular franchise and they said, "That's OK. We like the site.
0:37:45 > 0:37:50"We're nearby other food outlets that we want to be next to."
0:37:50 > 0:37:55They're ready to say, "OK if we can get Class 3, which is hot food, planning consent
0:37:55 > 0:37:58"then we're fine. We're OK to roll with it."
0:37:58 > 0:38:03So property developer Asif's plan is to lease the premises out
0:38:03 > 0:38:05to a fast food franchise.
0:38:05 > 0:38:10A Class 3 business licence allows food and drink to be sold and consumed here
0:38:10 > 0:38:12but there's a major sticking point.
0:38:12 > 0:38:17The property is in the basement and currently has no extraction flue.
0:38:17 > 0:38:20Without that, a Class 3 simply won't be granted.
0:38:20 > 0:38:23Asif's certainly got some food for thought here.
0:38:31 > 0:38:35- How will you resolve the issue of the extractor fan?- Hopefully...
0:38:35 > 0:38:39- Go down!- Hopefully, the architect is going to come up with some ideas.
0:38:39 > 0:38:45Once we've got him in, hopefully he can recommend where we can make a hole for the extraction.
0:38:45 > 0:38:48And then just take it from there.
0:38:48 > 0:38:52That's a very basic, but potentially quite fundamental problem.
0:38:52 > 0:38:58Yes, if we don't get the planning, then we're basically back to the drawing board.
0:38:58 > 0:38:59Um...
0:38:59 > 0:39:03So, yeah, it's very crucial that we do get the planning.
0:39:03 > 0:39:06- Wow! So quite a lot riding on this, then?- Yeah!
0:39:08 > 0:39:11That's the way I've always done it! Hope for the best.
0:39:11 > 0:39:15The other side of it is, the fallback is to just renovate it.
0:39:15 > 0:39:19It needs work done. Then hopefully look for a tenant on it.
0:39:20 > 0:39:26It's good that Asif has a back-up plan. But renting this place out won't be easy either.
0:39:26 > 0:39:30Due to economic conditions, the streets round here are full of unlet premises.
0:39:30 > 0:39:34And he'll need to spend a bit to bring it up to rentable standard.
0:39:38 > 0:39:41So what actually are you going to do with the place?
0:39:41 > 0:39:47Well, basically paint it all. Anything that needs to be replastered, they'll do that.
0:39:47 > 0:39:50Clean the floor, take out all the rubbish,
0:39:50 > 0:39:54and basically make it, for people to come and view it, a cleaner place.
0:39:54 > 0:39:59So how much are you going to have to spend just to get it smartened up?
0:39:59 > 0:40:02There's a bit of damp in the corner of one of the toilets
0:40:02 > 0:40:05so that all needs to be investigated.
0:40:05 > 0:40:10We reckon about ten to £15,000 to bring it back to its original state.
0:40:10 > 0:40:14That's just to get it to a point where somebody can walk around and say...
0:40:14 > 0:40:17- Definitely.- Wow.- It needs that amount of work.
0:40:17 > 0:40:21If you were to rent it out, any idea of how much you might get?
0:40:21 > 0:40:25We're looking at approximately 12,000 per annum.
0:40:25 > 0:40:28- Oh.- So it's a pretty good return, yeah.
0:40:29 > 0:40:33In general, how is the commercial market?
0:40:33 > 0:40:35It's like everywhere else.
0:40:35 > 0:40:42The residential and the commercial markets were both affected with the whole economy, the credit crunch.
0:40:42 > 0:40:45So yeah, it's difficult times!
0:40:45 > 0:40:49Yeah, but it should be OK. By the time we get this up and running
0:40:49 > 0:40:52I think we'll see a turn and we should get good rent for it,
0:40:52 > 0:40:56if it's the case that we rent out to somebody else.
0:40:56 > 0:40:59Good luck with it all. I look forward to seeing how you get on.
0:40:59 > 0:41:02Thanks very much! See you soon.
0:41:03 > 0:41:07Well, it strikes me that Asif has a few hoops to jump through
0:41:07 > 0:41:11before he turns this purchase into a success.
0:41:11 > 0:41:15Will this old hairdresser's turn out to be a cut above the rest
0:41:15 > 0:41:19or does Asif have some close shaves ahead?
0:41:19 > 0:41:22You can find out later in the show.
0:41:25 > 0:41:29Well, our would-be property sharks were certainly eager beavers when we left them.
0:41:29 > 0:41:32Did they grab the bull by the horns?
0:41:32 > 0:41:33Let's go back and find out.
0:41:35 > 0:41:38'We're back in Kilburn, north-west London.
0:41:38 > 0:41:42'Francois, a French architect working in London,
0:41:42 > 0:41:46'bought this studio flat at auction for 207,000.
0:41:46 > 0:41:49'He wants to do some property developing on the side.
0:41:49 > 0:41:55'This was Francois' first property purchase in the UK, but already he was thinking the same way as me.'
0:41:55 > 0:41:58So, what was the potential you saw in this flat?
0:41:58 > 0:42:04When I came the first time, I was quite surprised because it's a studio
0:42:04 > 0:42:07but I thought we can convert it into one bedroom easily
0:42:07 > 0:42:12- by maybe putting a wall here. Find a way to add value to the flat. - Absolutely.
0:42:12 > 0:42:14That's exactly what I thought.
0:42:14 > 0:42:17- #- It takes two, baby
0:42:17 > 0:42:20- #- It takes two, baby
0:42:20 > 0:42:22- #- Me and you.- #
0:42:22 > 0:42:25A plan was hatched to convert the large living space
0:42:25 > 0:42:27into a sitting room and a bedroom.
0:42:27 > 0:42:31And also to bring the kitchen and bathroom up to scratch.
0:42:31 > 0:42:35We've come back a month later to see how Francois got on.
0:42:43 > 0:42:46The living area has indeed been turned into two rooms
0:42:46 > 0:42:49with a partition wall dividing the area.
0:42:53 > 0:42:55So here is the living room.
0:42:55 > 0:42:59As you see, it's big enough for a living room. What we've done
0:42:59 > 0:43:01is decorated everything.
0:43:01 > 0:43:04We've put in a new wood floor.
0:43:04 > 0:43:09I know you love carpet in England but we're used to this kind of floor in France.
0:43:09 > 0:43:11We brought this material over from France
0:43:11 > 0:43:14and we've put it in quite quickly.
0:43:14 > 0:43:18And painting the window to make it look new and that's it.
0:43:20 > 0:43:23The bedroom. It's a compact bedroom.
0:43:23 > 0:43:27But if you look here, I think it's big enough to sleep
0:43:27 > 0:43:29and have everything you need in a bedroom.
0:43:29 > 0:43:33We've put here a sliding door to save space.
0:43:33 > 0:43:36You have heating here, electricity here, even a window.
0:43:36 > 0:43:38So I think that's everything.
0:43:39 > 0:43:43Words like "compact" and "bijou" spring to mind.
0:43:45 > 0:43:48But Francois has used the space well
0:43:48 > 0:43:50and there is enough room for a double bed.
0:43:50 > 0:43:54Moving from the front rooms to the bathroom,
0:43:54 > 0:43:57and Francois' team have repainted the blue bathroom
0:43:57 > 0:43:59in a more neutral tone.
0:44:01 > 0:44:06The kitchen has been cleaned up and is now just awaiting the appliances.
0:44:06 > 0:44:08So plenty has been done
0:44:08 > 0:44:11but Francois has another idea for creating more space
0:44:11 > 0:44:14and potentially more profit.
0:44:14 > 0:44:16For this flat, we've done the first set of work.
0:44:16 > 0:44:20And now we want to do a loft conversion.
0:44:20 > 0:44:25For this kind of work, we will need planning permission
0:44:25 > 0:44:27because we're going up.
0:44:27 > 0:44:30And so we're dealing now with the landlord
0:44:30 > 0:44:33and the council to make it possible to do it.
0:44:34 > 0:44:35As the flat is leasehold,
0:44:35 > 0:44:41Francois needs permission from the freeholder and the council before he can convert the loft.
0:44:41 > 0:44:44If he gets the consents, what will he put up there?
0:44:44 > 0:44:49We're going to add a new bedroom here in the roof space.
0:44:49 > 0:44:51There are neighbours here who've done it before.
0:44:51 > 0:44:55So I think if the landlord agrees,
0:44:55 > 0:44:56I think we'll do it.
0:44:56 > 0:45:01Remember, Francois had set a generous budget of 40,000
0:45:01 > 0:45:06for the refurbishment of the flat and also to extend into the loft if he were able to.
0:45:06 > 0:45:08So how much has he spent so far?
0:45:10 > 0:45:15We've spent about roughly £20,000. Something like this.
0:45:15 > 0:45:19Because we've brought workers here, we've brought new wood.
0:45:19 > 0:45:21We've made a new partition
0:45:21 > 0:45:23to split the main room.
0:45:23 > 0:45:27So it was not a big deal. It was roughly 20,000.
0:45:27 > 0:45:31For that budget, all the walls have been replastered
0:45:31 > 0:45:32and the windows repaired.
0:45:32 > 0:45:36Not only were the trades people brought over from his dad's building company,
0:45:36 > 0:45:38but also the materials.
0:45:38 > 0:45:43Francois reckoned it would be more cost effective than sourcing everything in the UK.
0:45:43 > 0:45:46So 20,000 spent on the renovation
0:45:46 > 0:45:50leaves a further 20 grand in the pot for his loft conversion
0:45:50 > 0:45:51should he get the go-ahead.
0:45:51 > 0:45:54The timescale of two weeks was spot on.
0:45:54 > 0:45:58We wanted it to be quick because we don't want to stay too long.
0:45:58 > 0:46:02What we'll do now is try to sell it
0:46:02 > 0:46:04and, we hope, quickly.
0:46:04 > 0:46:08To do something else, to buy another flat and move on, you know.
0:46:09 > 0:46:15So, as Francois bought the top floor flat at auction for 207,000
0:46:15 > 0:46:18and has so far spent £20,000 on the refurbishment,
0:46:18 > 0:46:24that makes a total outlay of 227,000 at present.
0:46:24 > 0:46:28He's also set aside another £20,000 for the loft conversion.
0:46:32 > 0:46:37But has this added value? We asked two estate agents for their opinions.
0:46:40 > 0:46:43I think he's done a very good job.
0:46:43 > 0:46:46He's turned it from a studio into a one-bed.
0:46:46 > 0:46:51If it was me, I would have continued the work on into the kitchen. But overall, a very good job.
0:46:54 > 0:46:56Very good. He's done very well.
0:46:56 > 0:47:00He's converted it from a studio to a one-bedroomed flat.
0:47:00 > 0:47:04But it's still got the space. It's very good.
0:47:07 > 0:47:11The conversion to a one-bed flat seems popular, but how does that affect the value?
0:47:11 > 0:47:14If I was putting this on the market at the moment,
0:47:14 > 0:47:19I'd put it around the 225 to £230,000 mark.
0:47:19 > 0:47:22I'd be able to sell it on for £240,000.
0:47:22 > 0:47:26Yeah, I'm a bit disappointed because I believed more than 250.
0:47:26 > 0:47:29But, you know, this is the price.
0:47:29 > 0:47:31It depends if you're in a rush or not.
0:47:31 > 0:47:34Me, I'm in a rush, so maybe I will accept this kind of offer.
0:47:34 > 0:47:36But if someone has more time,
0:47:36 > 0:47:40maybe they can wait and ask for a price more expensive.
0:47:40 > 0:47:44Even though Francois doesn't want to let it out,
0:47:44 > 0:47:48how much do the estate agents think it could rent for?
0:47:48 > 0:47:53At the moment, I'd put this on the market between 950 and £1,000 per calendar month.
0:47:53 > 0:47:56Yes, you can achieve £950 per month.
0:47:56 > 0:48:00A yield of around five per cent. Better than leaving the money in the bank.
0:48:00 > 0:48:01This is a good yield.
0:48:01 > 0:48:05If you make the percentage, it's a good yield for this kind of flat.
0:48:05 > 0:48:09But for me, I'm not interested in renting a property.
0:48:09 > 0:48:13One thing that could come to Francois' rescue
0:48:13 > 0:48:16is the possibility of converting the loft into another bedroom
0:48:16 > 0:48:20and even an en-suite. How would this affect the valuations?
0:48:20 > 0:48:23If this is converted to a two-bed flat,
0:48:23 > 0:48:27I'd be able to sell it on for £320,000.
0:48:27 > 0:48:31The comparables that we have show that two-bedroomed properties in the area
0:48:31 > 0:48:34sell for between 325 and 360,000.
0:48:34 > 0:48:40I would put that in that category. Around 330 to 340,000, once the work has been done.
0:48:40 > 0:48:44Yes, I think this is a big opportunity for this flat.
0:48:44 > 0:48:47That's why I'm really interested in this idea
0:48:47 > 0:48:50and I really want the landlord to give me the consent.
0:48:50 > 0:48:54- #- Please, please, please, please...- #
0:48:54 > 0:48:57Well, we hope his prayers are answered,
0:48:57 > 0:49:02because doing the loft conversion looks like the best way to maximise the profit here.
0:49:02 > 0:49:04Francois is soon going to find out
0:49:04 > 0:49:08whether the freeholder will allow him to sell the loft space
0:49:08 > 0:49:11for a percentage of the property's new value as a two-bed.
0:49:11 > 0:49:15So, what does Francois think of his first UK project?
0:49:15 > 0:49:20For me, buying here in London, it was the first project for me.
0:49:20 > 0:49:24It was something new. So I was nervous at the beginning
0:49:24 > 0:49:26but I think it's OK. It went fine
0:49:26 > 0:49:33and I hope from this one I will learn the lessons for the next one.
0:49:35 > 0:49:39We've returned to Airdrie in north Lanarkshire
0:49:39 > 0:49:45where local property developer Asif bought this basement commercial property at auction for 74,000.
0:49:45 > 0:49:51He wanted to change it from being a hairdresser's to a hot food outlet.
0:49:51 > 0:49:56But as it was in the basement, that presented one very significant stumbling block.
0:49:56 > 0:50:00There was no obvious place for an extractor fan
0:50:00 > 0:50:03and planning would depend on that.
0:50:03 > 0:50:07- How will you resolve the issue of the extractor?- Uh, hopefully...
0:50:07 > 0:50:11- Go down?- Hopefully, the architect will come up with some ideas.
0:50:11 > 0:50:13So once we've got him in,
0:50:13 > 0:50:17he'll be able to recommend where we can make a hole for the extraction.
0:50:17 > 0:50:20And then just take it from there.
0:50:20 > 0:50:24That's a very basic, but potentially quite fundamental problem.
0:50:24 > 0:50:30Yeah. If we don't get the planning, then we're basically back to the drawing board, I'd say.
0:50:36 > 0:50:40Apart from planning permission, the work on the property was straightforward.
0:50:40 > 0:50:43Sort out the damp and tidy up.
0:50:48 > 0:50:52We've come back one year later to see how Asif got on.
0:50:52 > 0:50:55Well, the interior has certainly been cleaned up
0:50:55 > 0:50:59and the big windows allow plenty of light into the premises.
0:51:00 > 0:51:05A large room at the back has been created by moving the loo to the middle of the property.
0:51:07 > 0:51:09And judging by the sign outside this former salon,
0:51:09 > 0:51:12the extractor issue has been sorted.
0:51:12 > 0:51:16So it was a case of "hair today, food tomorrow".
0:51:16 > 0:51:20Waiting for planning permission, however, was a nail-biting time.
0:51:20 > 0:51:25If we hadn't got the planning, then we were thinking what we were going to do with the property.
0:51:25 > 0:51:28With the economy as it is,
0:51:28 > 0:51:30it was actually a frightening moment.
0:51:30 > 0:51:32I phoned on the day of the committee
0:51:32 > 0:51:35and they basically said that it's been approved
0:51:35 > 0:51:40and I was ecstatic, so I thought, "Yes! Great!" It was great news.
0:51:43 > 0:51:49I'm intrigued. How did the architect find a solution to the extractor issue?
0:51:49 > 0:51:54Yes, around the back here were wash-hand basins, as it was a hairdresser.
0:51:54 > 0:51:59So we've left the drainage points because this is going to be the kitchen.
0:51:59 > 0:52:03They can suit themselves as to where they want drainage points.
0:52:03 > 0:52:06Also, the extraction for the kitchen is going to be from here.
0:52:06 > 0:52:09There's going to be extraction, as on the plans, from here
0:52:09 > 0:52:14all the way along the rear of the property and out the back above the eaves.
0:52:18 > 0:52:23So, with planning in place, the property would be much more attractive to prospective tenants.
0:52:23 > 0:52:26But has the rest of the work been straightforward?
0:52:26 > 0:52:31It wasn't plain sailing. Properties for renovation are never plain sailing!
0:52:31 > 0:52:37But we overcame the problems that we had. We had plastering problems and damp issues.
0:52:37 > 0:52:39Because this property is under road level,
0:52:39 > 0:52:43you find that the water penetrates one of the walls.
0:52:43 > 0:52:48We managed to rectify that problem by injecting a damp proof course.
0:52:51 > 0:52:54So, all damp-proofed below and the sides.
0:52:54 > 0:52:56But what about from above?
0:52:56 > 0:53:00Upstairs drainage, they had a problem to the rear of the store.
0:53:00 > 0:53:04It leaked and flooded part of this building.
0:53:04 > 0:53:09But we managed to clean that up thankfully that's been rectified.
0:53:10 > 0:53:14How did that affect the original budget of ten to 15,000?
0:53:19 > 0:53:23We managed - we've got stuff to finish - but we managed to spend about £12,000.
0:53:23 > 0:53:25So we're still within budget.
0:53:25 > 0:53:27Thankfully!
0:53:29 > 0:53:35Obviously Asif's original timescale of 12 weeks for the renovation has gone way over.
0:53:35 > 0:53:39But as this property is just one of many in his company's portfolio,
0:53:39 > 0:53:42it hasn't really impacted on him financially.
0:53:44 > 0:53:46Asif bought it for 74,000
0:53:46 > 0:53:49and has spent 12 grand so far on the renovation.
0:53:49 > 0:53:55That makes a total outlay of 86,000. But has this refurbishment done enough?
0:53:55 > 0:53:59We asked two local estate agents for their appraisals.
0:54:02 > 0:54:05Now we're back at the property a year later,
0:54:05 > 0:54:09fairly minimal improvements have been made. It's purely aesthetic.
0:54:09 > 0:54:11Walls have been painted, windows repaired.
0:54:11 > 0:54:15The property now has the added benefit of Class 3 consent
0:54:15 > 0:54:17which will add to the marketability of it.
0:54:17 > 0:54:20This property would appeal to existing local traders
0:54:20 > 0:54:22in the hot food industry.
0:54:22 > 0:54:27I doubt it would be of interest to any national retailers for that purpose,
0:54:27 > 0:54:29due to the fact that it is a basement.
0:54:29 > 0:54:35First impressions is it's a good town centre location, but the downside, it's in a basement.
0:54:35 > 0:54:39They may well look at this for a company operating a takeaway business.
0:54:39 > 0:54:42It would appeal to somebody from the local market
0:54:42 > 0:54:46and may appeal to larger companies with a takeaway consent.
0:54:46 > 0:54:52What do they estimate the current resale value of the property would be with its hot food consent?
0:54:52 > 0:54:56Remember, Asif has spent about 86,000 here.
0:54:57 > 0:55:01If this was sold on the open market in its present condition,
0:55:01 > 0:55:04I believe it would attract an offer in the region of £80,000.
0:55:04 > 0:55:08I would expect this property to achieve around about £100,000.
0:55:08 > 0:55:10Oh, very good.
0:55:10 > 0:55:12Obviously, the second one which is 100.
0:55:12 > 0:55:17Having bought it and what we've spent, we'd actually make money on it in that case.
0:55:17 > 0:55:20So I'm happy with that if it went for the 100.
0:55:20 > 0:55:23However, we're not wanting to sell at present.
0:55:23 > 0:55:25We just want to let it, so that's good news.
0:55:27 > 0:55:30What about those all-important rental figures?
0:55:30 > 0:55:33If this property was let on the open rental market,
0:55:33 > 0:55:37I believe it would achieve a rental figure of about 10,000 to £12,000 per annum.
0:55:37 > 0:55:42I would expect it to achieve a rent probably of about £12,000 a year.
0:55:42 > 0:55:4510,000, 12,000 from both surveyors for letting. That's great,
0:55:45 > 0:55:50considering we're looking for 12,000 and hopefully that's the price we'll get.
0:55:50 > 0:55:55So I'm quite happy with that. We're in the ballpark figure the surveyors have said.
0:55:55 > 0:55:56Great.
0:55:56 > 0:56:00Asif has had a tenancy offer from a national fast food chain
0:56:00 > 0:56:03and hopes to conclude the deal within the next two months.
0:56:03 > 0:56:08If it goes ahead, he'll get a rental income of £12,000 a year,
0:56:08 > 0:56:11meaning a yield of nearly 14 per cent.
0:56:11 > 0:56:14Asif seems to know what to do to attract tenants.
0:56:14 > 0:56:16But would he take on something like this again?
0:56:16 > 0:56:20I wouldn't want to take another gamble like this,
0:56:20 > 0:56:22because of the way the market is.
0:56:22 > 0:56:28There's not a lot of tenants coming through simply because nobody's got any money to invest.
0:56:28 > 0:56:33So it's great news that we managed to get the hot food and now we have a tenant interested.
0:56:33 > 0:56:36So I'm delighted with that. That's great.
0:56:37 > 0:56:44I'm not surprised, because Asif's vision for this former hairdressing salon looks to have been satisfied,
0:56:44 > 0:56:48hopefully exactly what the customers will feel when they come in for hot food.
0:56:53 > 0:56:57From perfect homes to shrewd investments.
0:56:57 > 0:56:59Join us next time for more auction room drama.
0:56:59 > 0:57:01- See you!- Goodbye!
0:57:22 > 0:57:25Subtitles by Red Bee Media Ltd