Episode 25 Homes Under the Hammer


Episode 25

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Transcript


LineFromTo

-Hello and welcome to the programme.

-We all know that the value of houses

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-can go down as well as up.

-So it pays to buy at the right price

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-in the first place.

-One way you can do that

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is to buy your next home under the hammer.

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If you're sitting at home thinking you'd like to buy at an auction, now could be a good time to start.

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Yes, the market is always changing so you have to judge when is the best time to buy.

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-Today's buyers have already put their money on the line.

-And this is what they bought.

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'This house with kennels in Cheshire could put your budget in the dog house.'

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When you come to restore this place, it's going to start notching up the costs.

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'I find a potential money pit at this London property.'

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If that wasn't enough,

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there's a great big crack on the wall just there.

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'And this magical flat in Lancashire pulls out an extra rabbit.'

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Not only do you get the flat when you buy this particular lot,

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you get the freehold of the building.

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'All these properties have been sold at auction and we'll find out who bought them

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'and what they paid for them when they went under the hammer.

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'I've come to beautiful rural Cheshire.'

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This is the main road linking Nantwich with Stone

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and I'm in a little village called Walgherton.

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Not much here apart from a pub and a few houses and this property that was up for auction.

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It's a former kennels. It's got three quarters of an acre of land.

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Guided £300,000 to £325,000.

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'It certainly sits pretty on this expansive land

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'but there are signs of wear and tear when you get closer,

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'although there's no denying its chocolate-box facade.'

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Well, it's definitely got a very cute front aspect.

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Then straight in through the front door, look at that. I love that little window.

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And then wow! Look at this staircase!

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You would not expect something quite as wide as that in a house like this.

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That's really nice. It goes a bit downhill in this room

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cos you've got another door leading into the dining room. That's a bit strange.

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But then over this side, I guess this is your main living room. Open fires.

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Original features I guess, although not that brilliant.

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But nice to see that you've got some beams there.

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Then through into the kitchen. Cute little farmhouse kitchen.

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Again, you've got your original beams, your range cooker.

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I mean, it needs completely renovating.

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But as layouts go, not a bad one.

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'So, it's a good start layout-wise,

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'despite the fairly poor state of repair.

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'Time to head on up.'

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Sadly, upstairs, the layout starts to go horribly wrong.

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Two good-size double bedrooms, one that side and one over there,

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this tiny box room and a separate loo, but you've got these levels

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and I see these and I think, when you come to restore this place,

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if that's what you wanted to do, it's going to start notching up the costs.

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'Old houses like this can present enormous problems.

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'Rectifying them can cost serious money so novices beware.

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'Unless you know what you're doing and have the money to do it,

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'this rather dog-eared former kennels house is probably one to avoid.'

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Down here in the old kennels, you can really see that this place is currently a Heinz 57 mutt.

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What it needs is someone with the tenacity of a Rottweiler

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and the saving characteristics of a St Bernard to take it on.

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# Who let the dogs out?

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# Who let the dogs out?

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'It's definitely a dog-tired old property and may hound a new owner but there's potential.'

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So, what could you do with this place? Well, I suppose one option would be to look at extending it

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if you needed a bigger home. Or my preferred option, although I hate to say it,

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knock it down perhaps. Could you? Maybe? Even that staircase?

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Yeah.

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# There's got to be a better way

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# Tear it down

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'OK, I can hear your gasp of horror. Knocking it down does seem drastic.

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'But this could turn into a real money pit if the new owner isn't careful.

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'You could just take a sideways step and increase its footprint with an extension.

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'My property developer's head says no way!

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'With a guide price of £300,000 to £325,000

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'let's hear what a local estate agent makes of this tired cottage.'

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I think this property is amazing. I think it's got great prospects

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and it'll make a great family home.

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'That somebody is going to have to be ready for some hard graft.

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'With so much land, the owner will have plenty of options.

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'So what's its development potential?'

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The land that's available here is quite a substantial plot.

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It's just under an acre. The property as it stands doesn't really do it justice,

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so I do believe we're looking at either an extension of this existing property

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or complete rebuild.

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-'Let's talk prices.'

-The rental figures per calendar month

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for a property of this size,

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you'd be looking at somewhere in the region of £800 per calendar month.

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If you were to redevelop this property, either by extension or a complete rebuild,

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then you'd be looking at somewhere in the region of £750,000.

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Well, if you're looking for a farmhouse to do up

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and enough land to create yourself a bit of a smallholding,

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you could've found it here just outside Nantwich.

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Let's find out who bought it when it went to the auction.

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This is a former kennels house. It occupies an excellent site in a most attractive rural locality.

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250 I've got. 250 I've got.

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255. 255. At 255.

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260? 260. At 260.

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At 260. And 5. At 265. At 265.

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270. And 5. At 275.

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280. At 280. At 280.

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And 5. At 285.

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290. At 290.

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295. At 295.

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300. At 300. 300. And 5, sir?

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At 305. At 305.

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10. At 310. At 310.

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At 310. 15 now.

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At 310. At 310.

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We'll make it 12 and a half. You can't beat it.

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At 312 and a half. Come on, you'll go for that.

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312 and a half. At 312 and a half. Are we all done?

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At £312,500.

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Again, I'm sorry, it's below my reserve price

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but please stay and have a word with us, we'll see what we can sort out.

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'And have a word is what those determined bidders did

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'when the property didn't reach its reserve.

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'New owners Nigel and Claire stuck to their final offer of £312,500

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'and sealed the deal after the auction.

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'Claire is a teaching assistant and Nigel's an electrical contractor.'

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-Claire, Nigel, lovely to meet you both.

-Hi.

-Hi.

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-Congratulations.

-Thank you.

-Why did you want it so much?

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Erm, we could see the potential.

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We only looked at the property seven days prior to the auction.

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We could see the potential. We set our price

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and went to the auction with a complete open mind.

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Tell me more about the plans for it.

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There's many, many things at the moment going round in our heads

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but, obviously, we love the original cottage.

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We want to be able to develop the original cottage

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into a much bigger family home.

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You could pull the whole thing down and start again. Is that an option?

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-No.

-No. We want to keep the old building.

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With the local council, it's going to give us a little bit more scope to play with planning

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if we keep the old part of the building up.

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And also, the front of it is so beautiful, that's what we fell in love with.

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It's sort of chocolate-box pretty.

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And it would be such a shame to just bulldoze that down.

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# You're sweet like chocolate, boy

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# Sweet like chocolate

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'So, the sweet Cheshire cottage lives to see another day.

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'Claire and Nigel are unsure about future development on the rest of the relatively large plot,

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'although they are aware of its building potential.

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'What do they plan for the property itself?'

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Do you have a vision of what the house will be when it's finished?

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I have in my head. Nobody else can see it apart from Nige and I at the moment.

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All they see is this little cottage with lots of kennels.

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But we envision the pretty front of the house

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tied in with a huge extension.

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There's going to be lots of light, lots of oak and glass.

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We want it to be a little bit different.

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And the idea is it becomes your family home?

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-Oh, definitely.

-How big's the family?

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We have my two children, Lizzie and Will, Nigel's two boys, Alex and Matthew.

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So we're going to need lots of space.

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So where do you live at the moment and what are you going to do?

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We live at the other side of Nantwich

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in a little village called Worleston.

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We live in a barn conversion there, but until we sell that property,

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we will be leaving this just to develop as best we can

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with the limited resources we have at the moment until we can fund it.

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'So the couple can make a start here while their current house, 45 minutes away, is on the market.

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'Once that's sold, they'll live on the site while the work is being done.

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'As Nigel's in the building trade, his own skills and contacts will be invaluable.

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'The couple reckon it could take two years to complete

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'what they hope will be a home with a real wow factor.'

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What about budget for all this? Cos you've got your other house that you haven't sold yet.

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We have a budget in our head

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but, at the moment, until we sell this other property

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and we set it up and we get planning, we'll work everything out.

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In terms of budget, we want to be able to self-finance as much of this as we possibly can.

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How will you divvy up the work? Are you going to get your hands dirty, Claire?

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Definitely, yeah. I already have. Don't mind getting my hands dirty.

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You can't say romance is dead. He bought me a pair of rigger boots last week.

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THEY LAUGH

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-All in all, you're happy with the way things have turned out.

-Very.

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-Very, very.

-It's exciting. We haven't had much sleep since we bought it.

-Really?

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We keep planning. We've had to buy a big block of graph paper cos we keep drawing all the plans. It's exciting.

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Great. I'm delighted for you both. Good luck with it

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-and I look forward to seeing how you get on.

-Thank you very much.

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Well, it's seems like Nigel and Claire were destined to own this place

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and they've certainly got some ambitious plans for it.

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It all comes down to planning permission, of course,

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but intrinsically, it looks like the property is saved.

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Join us later in the show to find out how they get on.

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Welcome to New Cross in Southeast London.

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It's an area that's experiencing a real resurgence.

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So what's new about New Cross? Well, the artists are moving in,

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there's galleries popping up all over the place, plus transport links are set to be transformed.

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'The East London line is coming here in 2012

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'and will form part of the wider over-ground orbital network.

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'It will allow travel around the capital by train without having to enter Central London.'

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# The train is coming, baby

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# I said the train is coming now

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And here it is. Now, the guide on this attractive property

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is £235,000.

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Let's have a little look around and see if it's as attractive inside.

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'From the outside, this property, split over three levels, is certainly impressive.

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'There are ornate mouldings round the doorway, the bay window, and it's great to see exposed brickwork.

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'Let's explore inside.'

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This property is divided currently as two flats, one upstairs and this one here on street level.

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There's a sitting room through there, not a bad size.

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And oh, my goodness, the kitchen. Bit of a purple palace.

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And, of course, there's a gaping hole in the ceiling.

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You can actually see the upstairs floorboards poking through.

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So that immediately needs to be looked at.

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And my first impressions are not positive here

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because it feels cramped, it's dark, you've got sloping ceilings here

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and this whole house feels like it's leaning that way.

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And if that wasn't enough,

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there's a great big crack on the wall just there.

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So I'm not loving this place at the moment.

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'This property is cracking up, and in more ways than one.

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'It's been lying empty for a while.

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'There are signs of damp in the front room and the kitchen needs major work.

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'It all just feels a bit neglected

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'and could do with some serious TLC.'

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# Cracking up

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# Like a worn-out shoe

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'On the lower ground floor, the three bedrooms also have signs of damp

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'and desperately need a revamp. There are garden views at the rear

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'although at the moment, if there were any curtains,

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'you'd probably want to keep them shut! What about the one-bedroom flat?'

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So upstairs is the second flat

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and there's a little more of that Victorian character showing through up here.

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You've got original sash windows, nice banisters.

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But unfortunately, there are two things up here that may put you off.

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There's a serious case of damp in that back bedroom

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and a fire-damaged kitchen up there. Sorry to be the bearer of bad news.

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'You could see this as thoroughly depressing. However, although it seems to be falling apart,

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'the bones are here and after some remedial work, this has the makings of a really good flat.

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'Both flats are large and spacious so whilst first impressions are not promising,

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'it may pay to see past all the drudgery.

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'The guide price was set at £235,000.

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'We asked a local estate agent what she made of it.'

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The first impression is it's in a great area,

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a great investment opportunity

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and it has the potential to either keep it as a family home

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or convert it into apartments.

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'If the property was refurbished and sold as flats,

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'how much could they sell for in this area?'

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A one-bedroom in the area is achieving between £160,000 and £170,000.

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A two bedroom would achieve between £200,000 and £220,000.

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And a three-bedroom would achieve close to £230,000, £235,000.

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'That's a significant return. And there's also a strong rental market in New Cross

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'with two-bed flats commanding £850 to £900 a month.'

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With a university round the corner, you will always have a steady stream of tenants

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and improved transport links due for completion next year

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are set to transform this part of London.

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As a result, New Cross is definitely on my property radar.

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But, you know, this house is going to require a lot of work.

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But fire damage and signs of subsidence didn't put someone off.

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Let's go to auction and find out who that was.

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So, invite your bids. 205 standing up, yeah?

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205. 210. 210.

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215. 220.

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225.

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230. 230.

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230. 235, sir? At the back.

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235. 240.

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245. 250.

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250, yeah? 250.

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255.

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251 down here. 252.

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253. 254.

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255. 256

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257. 258.

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259. 260.

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Well done. 261.

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262?

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Have a think. 261. 262, new spot.

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262. 263.

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Yep. 264. 265.

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266. 267.

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268 with you, striped shirt. 268.

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269, back in.

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270. 271.

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272.

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273, sir?

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272 down here.

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First time, second time,

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third and last time if you're all done.

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-HAMMER BANGS

-Sold, 272.

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'The successful bid of 272 came from Ishmael.

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'Originally from Turkey, he's lived in London for the past eight years.

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'He has a food import and export business

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'but hopes that one day his part-time property investing will become a full-time career.

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'I met him at his latest purchase to hear his plans.'

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-Ishmael, congratulations.

-Thank you.

-Are you really excited about having bought this at auction?

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Yes. I think it's going to be challenging for me, but I am excited.

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So now you've had time to take it all in, to have a good look around,

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are you still as excited?

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A little bit worried but still excited.

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-What are you going to do with it?

-I'm planning to convert it to three flats,

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one three-bedroom family house with garden as the lower-ground floor

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and the raised ground floor is going to be a one-bedroom flat

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and upstairs, the first floor with loft conversion

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is going to be a two-bedroom flat.

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It depends on the council permission.

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'Wow! I'm impressed. But also a tad concerned.

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'Squeezing three flats with so many bedrooms into this property

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'seems very ambitious, but Ishmael has a clear plan for that.'

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Ishmael, what are you planning to do with this, rent it or sell it once the work's complete?

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First, I want to sell it.

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If I can't, in this area, there is a good rental market.

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'Ishmael hasn't wasted any time doing his research and getting organised.

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'He's contacted the planners and got a verbal green light for conversion to three flats.

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'His architect has drawn up plans for the three-bed flat

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'with an extension on the lower ground-floor,

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'a one-bed on the ground floor and a two-bed maisonette on the top floor and loft space.

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'Ishmael certainly doesn't hang about!'

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# I got ants in my pants and I need to dance

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'And that's just as well.

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'Currently he has three properties that he rents out

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'but he's never faced such a mammoth renovation before.'

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So this really is going to be a very challenging project for you.

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-It's what I want.

-You want this?

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-Yes.

-Why do you want this?

-Because I'm changing my career focus gradually in the property business.

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Because I am doing my import/export business, property was my part-time hobby.

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In the last five months, I decided it's going to be vice-versa.

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The property's going to be my main focus

0:19:540:19:58

and my import/export business is going to be just part-time work.

0:19:580:20:03

And how hands-on are you with work?

0:20:030:20:06

Can you lay flooring? Are you good at tiling? Can you check the electrics?

0:20:060:20:10

How involved are you going to be?

0:20:100:20:13

According to my wife, I am a DIY man

0:20:130:20:16

because I'm doing, in my current house, all the shelving, painting, wallpaper.

0:20:160:20:23

I believe that I can do, not the major work, not the technical gas or electric,

0:20:230:20:28

I wouldn't touch that side because of health and safety, I will not do it myself,

0:20:280:20:32

but I can lay the tiles, I can do the painting, I can do the gardening.

0:20:320:20:38

'It's great to hear he's such a dab hand at DIY as it's a real money-saver.

0:20:380:20:44

'But Ishmael's doing the right thing by getting professionals in

0:20:440:20:47

'for the more specialist jobs, like the electrics. These will definitely need to be checked out

0:20:470:20:52

'given the fire damage in the upstairs kitchen.

0:20:520:20:55

'A bit of good news is that the fire stemmed from the boiler,

0:20:550:20:58

'it wasn't too severe and it didn't affect the structure of the building.

0:20:580:21:02

'OK, let's talk cash, because sorting out this ugly mess will surely cost a pretty penny.

0:21:020:21:07

'He reckons he has about £115,000 available.'

0:21:070:21:10

So what's the profit you hope to walk away with once this is all done?

0:21:100:21:16

I think if there's a 20 percent return, it will be great.

0:21:160:21:20

-And that's if it all works out and goes in your favour and you get the planning permission.

-Yes.

0:21:200:21:25

-Ishmael, there's a lot of work to do here but I wish you well.

-Thank you.

-Nice to meet you.

0:21:250:21:30

Ishmael has his work cut out with this one

0:21:310:21:33

and I'm not sure turning this into three flats is such a good idea.

0:21:330:21:37

But it will give him a fantastic return if it all works out.

0:21:370:21:41

But will he get it past the planners and is there enough square footage to accommodate three flats?

0:21:410:21:46

And that's even with the planned extension.

0:21:460:21:49

You can find out how Ishmael gets on with his biggest project to date later on in the show.

0:21:490:21:54

'Coming up, converting the basement of this Lancashire flat could be well worth it.'

0:21:560:22:01

It could add that value back onto the property, but more than that, it's a lifestyle thing.

0:22:010:22:05

'Has Ishmael been penny-pinching or splashing the cash

0:22:050:22:09

'on his first major development in London?'

0:22:090:22:12

I just got £10,000 over the budget.

0:22:120:22:15

'But first, in Cheshire, Claire and Nigel have settled in.'

0:22:150:22:19

Very, very quickly it just feels like we've been here forever.

0:22:190:22:23

'We're back in Walgherton near Nantwich, Cheshire,

0:22:260:22:29

'where this former kennels house on almost an acre of land

0:22:290:22:33

'sold for £312,500.

0:22:330:22:36

'I met Claire and Nigel who had ambitious dreams for this tired old place.'

0:22:360:22:41

We envision the pretty front of the house

0:22:410:22:45

tied in with a huge extension.

0:22:450:22:49

So there's going to be lots of light, lots of oak and glass.

0:22:490:22:53

We want it to be a little bit different.

0:22:530:22:56

'Have the couple got everything they wished for?

0:22:560:22:59

'Two and a half years later and we've returned.

0:22:590:23:03

'It's not just the seasons that have changed.

0:23:030:23:06

'There's now a huge double-storey extension stretching right across the back

0:23:100:23:14

'which is a sympathetic blend of old and new.

0:23:140:23:17

'There's a stylish and ultra-modern kitchen-dining-living room area.

0:23:210:23:25

'Two sets of French doors allow in plenty of light

0:23:250:23:29

'whilst also giving easy access to the garden.

0:23:290:23:32

'The frontage has been beautifully restored

0:23:330:23:36

'and whilst it retains its cottage feel, inside it feels like new.

0:23:360:23:41

'The former dining room at the front has been converted into a cosy study.

0:23:410:23:46

'Whilst the formerly bare and bereft living room has been lovingly refurbished

0:23:460:23:51

'with this beautiful brick fireplace as a focal point.'

0:23:510:23:55

This is the old part of the house and this is now the snug.

0:23:550:23:59

It was the original lounge in the old house.

0:23:590:24:01

There was an old fireplace in there. We've replaced it now with a log-burning stove

0:24:010:24:06

We've got under-floor heating in here and it is the cosiest room in the house.

0:24:060:24:10

'Upstairs, they've remedied the issue of the different floor levels

0:24:140:24:17

'and created a beautiful master bedroom.

0:24:170:24:21

'With luxurious en suite.

0:24:220:24:24

'The box room is now a gorgeous single guest room.

0:24:270:24:30

'Also en suite.

0:24:320:24:34

'The layout changes and extension have allowed for an extra bedroom to be created.

0:24:340:24:40

'There are now two large double bedrooms

0:24:400:24:42

'with a shared Jack and Jill bathroom for Claire's children, Lizzie and Will.

0:24:420:24:47

'As a reward for their hard work, they've chosen their own decor.'

0:24:470:24:51

Virtually from the plan, they chose which rooms they would like

0:24:510:24:54

and then as the rooms began to take shape,

0:24:540:24:57

they decided what colour scheme they'd like and what beds they'd like, et cetera,

0:24:570:25:02

and then Will decided that he'd like to have a graffiti artist decorate his room,

0:25:020:25:07

so we phoned a great guy that came and did that.

0:25:070:25:10

And Lizzie has found all different wallpaper samples and fabric samples

0:25:100:25:17

and designed herself a lovely room and they're both well deserved.

0:25:170:25:21

They've been great and worked really hard.

0:25:210:25:24

'In fact, all of them really put their backs into this project

0:25:250:25:28

'and the family only moved in properly two weeks ago.

0:25:280:25:32

'So how was the experience for them?'

0:25:320:25:35

Highs when we started and when you see big things happening,

0:25:350:25:39

when the new roof went on and the garages went up,

0:25:390:25:42

having it all plastered and having the floors go down,

0:25:420:25:45

when you can see big changes, that was really good.

0:25:450:25:49

Lows. What have the lows been? Taking the roof off on Boxing Day.

0:25:490:25:54

Taking the roof off on Boxing Day and the worst winter in history, the recession hasn't helped,

0:25:540:26:01

so we've had to work hard at it and we've stopped and started,

0:26:010:26:06

mainly due to things that have been unforeseen sort of thing.

0:26:060:26:12

But we're there now and we've moved in.

0:26:120:26:17

# And it looks like we might have made it

0:26:170:26:21

# Yes, it looks like we've made it to the end

0:26:210:26:28

'So they've made it, and as is often the case with projects like this,

0:26:290:26:33

'it's been a bit of a rough ride at times.

0:26:330:26:36

'But why did it take six months longer than anticipated?'

0:26:360:26:39

Planning permission took nearly 12 months,

0:26:390:26:42

going back and forth, back and forth, but we eventually came out with what we pretty much wanted.

0:26:420:26:49

We had to make a couple of changes.

0:26:490:26:52

And then from when we got planning permission to the first spade going in the ground,

0:26:520:26:57

it's been just over 13 months.

0:26:570:27:00

Which isn't bad going, but if you think about the 18-hour days

0:27:000:27:05

that Nigel's done, seven days a week

0:27:050:27:08

with me and Lizzie and Will labouring for him,

0:27:080:27:11

it's been pretty tough!

0:27:110:27:14

But it's been well worth it.

0:27:140:27:16

'The couple were unsure what their renovation budget was when they first bought the property.

0:27:170:27:22

'So just how much have they spent?'

0:27:220:27:25

When we worked it out, we thought we'd spend about 150.

0:27:250:27:29

And roughly, without a calculator, it's just under that figure now.

0:27:290:27:34

'It's been a long haul, but it must be a huge relief to be finally living in their fabulous new home.'

0:27:340:27:41

The first weekend we moved in, because everything is new,

0:27:410:27:45

it felt really strange to be living in the house that we've worked on for all these months,

0:27:450:27:52

and then to actually be living in here, sitting on the sofas, sleeping in the beds was really strange.

0:27:520:27:57

But very, very quickly it just feels like we've been here forever.

0:27:570:28:01

'So, with £312,500 paid at auction

0:28:030:28:06

'and an estimated £150,000 spent on the renovation,

0:28:060:28:11

'making a total of £462,500 so far, has the work been worth it?

0:28:110:28:17

'We asked two local estate agents for their opinions.'

0:28:170:28:21

I think the property's wonderful. It's got a lovely sweeping drive,

0:28:230:28:26

three-car garage. And inside, the accommodation and presentation

0:28:260:28:31

is excellent, the finish is superb all the way through.

0:28:310:28:35

I have no issues at all with the quality of this house.

0:28:350:28:38

The property overall has been finished to an excellent standard,

0:28:380:28:42

very thoughtful in terms of the refurbishment

0:28:420:28:45

and, aesthetically, offers something a little different

0:28:450:28:48

than a lot of other properties in the area.

0:28:480:28:50

'The estate agents reckon they could make £1,500 per month on the rental market.

0:28:500:28:56

'But Nigel and Claire have always intended this to be their family home.

0:28:560:29:01

'After all their hard work, have their improvements added value?

0:29:010:29:05

'What could it make on the resale market, remembering their outlay is just over £462,000?'

0:29:050:29:11

I would expect to put the house onto the market at £495,000.

0:29:110:29:16

I would look to put the property on the open market in the region of £600,000.

0:29:160:29:20

'Quite a difference of opinion there

0:29:200:29:23

'with the current climate making it fairly difficult to predict. What does Nigel think?'

0:29:230:29:27

I think I'll go with 600 because at this point, we haven't finished the property,

0:29:270:29:33

the actual building is finished, we've got a lot of landscaping to do,

0:29:330:29:37

we're in the middle of a recession and I think, when we actually market the property in a few years,

0:29:370:29:42

I think there'll be a hell of a difference in the price.

0:29:420:29:46

'Well, it's unlikely they'll be selling any time soon

0:29:460:29:49

'considering they've only been living here for two weeks.

0:29:490:29:52

'How do they feel now the hard work's behind them?'

0:29:520:29:56

When we look at the photographs of what we bought to what we've got now,

0:29:560:30:00

you have to pinch yourself. It's a lovely feeling, isn't it?

0:30:000:30:03

It is, yeah, and I think what we've achieved is, as we've said before, a lovely family home

0:30:030:30:10

that even when we sell the property, we'll be able to drive past it and say to ourselves, "We built that".

0:30:100:30:18

'I'm in the heart of Lancashire in its historical capital, Preston,

0:30:220:30:26

'almost exactly midway between Glasgow and London.'

0:30:260:30:30

Preston - a city of firsts.

0:30:300:30:32

The first motorway in the UK, the M6,

0:30:320:30:36

the first traffic cones ever used

0:30:360:30:38

and the first place outside London

0:30:380:30:41

where they used gas lights.

0:30:410:30:44

So, what's that got to do with property? Absolutely nothing at all!

0:30:440:30:48

But this is the one I'm here to see. Had a guide price of £35,000 to £40,000.

0:30:480:30:52

It's a flat in this converted Victorian terrace. Let's take a look inside.

0:30:520:30:56

'The terrace was built in 1859 but divided into two flats in 1992.

0:30:580:31:04

'It's the one-bed ground floor flat that I'm here to see.'

0:31:080:31:12

So, what's on offer? Oh, I say, that looks pretty good.

0:31:120:31:16

I'll tell you about that in a minute. We've got this corridor leading down to the rear.

0:31:160:31:21

Your bedroom there. Then through to the thing I've just seen, which is this!

0:31:210:31:25

A fantastic, huge living room.

0:31:250:31:28

Love the high ceilings, love the fact that there's still some period details

0:31:280:31:33

and this massive bay window. Lots of light. Doesn't feel like a small flat to me.

0:31:330:31:38

'I'm loving this already. The room's magnificent.

0:31:380:31:40

'Just look at the fireplace.'

0:31:400:31:43

# You're beautiful

0:31:430:31:45

# You're beautiful, it's true

0:31:460:31:50

'The bedroom's much less ornate, but it's still a good-size double with loads of storage.

0:31:500:31:55

'But I've spotted some damp on the back bedroom wall so I'd get that checked out.

0:31:550:32:00

'That said, you only really need to decorate the room,

0:32:000:32:03

'add some personal touches and the bedroom's home.

0:32:030:32:07

'With its loo tucked behind a wall, the bathroom is dated and, let's face it, far from pretty.

0:32:080:32:15

'You'd definitely need to put a new suite on your shopping list, I'd say.

0:32:150:32:19

'One good thing is that there's a decent-size back yard.

0:32:200:32:23

'However, the upper flat does have right of way across it

0:32:230:32:27

'as their fire escape is on the rear kitchen wall at the back.'

0:32:270:32:31

So all the way to the rear of the flat and you'll find the kitchen.

0:32:330:32:37

As you can see, it's in a bit of a state.

0:32:370:32:40

Definitely a visit to the local DIY store or get a kitchen expert in to sort this one out.

0:32:400:32:45

But it's a good-size space again, so we like that.

0:32:450:32:49

Boiler looks like it need replacing.

0:32:490:32:51

All in all, there's things to be done, but the good news is

0:32:510:32:54

that not only do you get the flat when you buy this lot,

0:32:540:32:57

you get the freehold of the building

0:32:570:33:00

and that has lots of advantages in terms of the fact that you get to charge ground rent to the other flat

0:33:000:33:06

and also you can do what you like to this flat without asking permission.

0:33:060:33:09

However, it does come with obligations and those needs to be checked out by your solicitor.

0:33:090:33:14

'The freeholder is responsible for the upkeep of the fabric of the building,

0:33:150:33:19

'maintaining the shared hall that both flats use and that sort of thing.

0:33:190:33:24

'But the lease agreement here means that the upper flat has to pay half the cost of works undertaken.

0:33:240:33:30

'This ground-floor flat doesn't stop at ground level.

0:33:300:33:34

'There's more in the basement.'

0:33:340:33:37

Down here, a real bonus to the property

0:33:370:33:40

because you've got a decent size cellar and it doesn't smell too damp.

0:33:400:33:45

So, in its simplest form, this is a great place to store stuff,

0:33:450:33:48

but I think you could do much more with this. For a start, you've got some natural light here

0:33:480:33:53

so why not think about converting it into a kids' play room

0:33:530:33:57

or maybe a media place with a huge great television so you can watch your movies?

0:33:570:34:01

There's all sorts of things you can do. Converting it, though, really is a job for the specialist.

0:34:010:34:06

You've got to think about tanking the walls, maybe putting on special membranes

0:34:060:34:11

and then pumps to pump away all the dampness.

0:34:110:34:15

But I think worth the effort. In terms of cost, £800 to £1,500 a square metre as a guide.

0:34:150:34:22

It could add that value back onto the property, but more than that,

0:34:220:34:26

it's a lifestyle thing. What a great space.

0:34:260:34:28

# To the basement, people, to the basement

0:34:280:34:31

# Many surprises await you

0:34:310:34:35

'For anyone buying this as an investment property,

0:34:350:34:39

'would it be financially worthwhile to convert the cellar?'

0:34:390:34:42

'What does the auctioneer who sold it think?'

0:34:420:34:47

I suppose, from the basement point of view, it could be converted.

0:34:470:34:51

The height is there and the potential is there. It could be done.

0:34:510:34:55

From a return point of view, not sure whether, if the property was resold

0:34:550:35:00

with a basement conversion, whether that would add enough value

0:35:000:35:03

for the cost involved. From a rental point of view,

0:35:030:35:06

I'm not sure the increase in rental return would be worth it.

0:35:060:35:10

'What about the rest of the flat that went to auction with a guide price of £35,000 to £40,000?'

0:35:100:35:17

It's a good size for a one-bedroom flat. The room sizes are good, the ceiling height's nice.

0:35:180:35:23

It does need some work. Standard renovation, really. Bathroom and kitchen need modernising

0:35:230:35:28

and then general decoration. In terms of return, we're looking at £400 to £425 per calendar month.

0:35:280:35:35

'What about the potential market value once it's been done up?'

0:35:350:35:39

The value of the property once completed, without a basement conversion,

0:35:410:35:44

would be £65,000 to £70,000.

0:35:440:35:47

If the basement was converted, you could see a value starting at around £75,000, possibly up to £80,000,

0:35:470:35:53

depending on how the rest of the flat panned out.

0:35:530:35:56

So, all in all, a good-sized flat.

0:35:560:35:59

Yes, it does need a bit of work to sort it out,

0:35:590:36:02

but you've got the added advantage of the bit of garden, the basement

0:36:020:36:06

and you get freehold of the whole building.

0:36:060:36:09

And it's pretty close to Preston City Centre, so lots of reasons to buy it.

0:36:090:36:13

Let's find out who did when it went to auction.

0:36:130:36:16

Lot 111 is a vacant one-bedroom ground-floor flat.

0:36:160:36:21

'This lot was towards the end of the auction

0:36:210:36:24

'so the room was emptier than earlier.

0:36:240:36:26

'Let's find out if anyone got a bargain.'

0:36:260:36:28

Shall we start at 20? £20,000 do we see? 20 I've got straight in.

0:36:280:36:32

25 then? 25 anywhere?

0:36:320:36:35

Stood at the back I've got 25. 30.

0:36:350:36:37

30 I've got there. 32 I've got. 34?

0:36:370:36:41

34 I've got. Want to make it 36, sir?

0:36:410:36:45

I think that's a half I've got. OK. 34 and a half, I'll take it.

0:36:460:36:49

35,000. 35 I've got. 35 and a half, then.

0:36:490:36:53

OK, it's with the gentleman sat right in front of me at 35,000.

0:36:550:36:58

35 and a half, new bidder at the back.

0:36:580:37:01

35 and a half I've got. 36. Got it. And a half?

0:37:010:37:04

Got that, as well. 37.

0:37:040:37:07

Got. 37 and a half. Yes.

0:37:070:37:09

38. And a half.

0:37:090:37:12

I've got it. Want to make it 40?

0:37:120:37:15

Are you sure? 40,000 I've got.

0:37:150:37:16

41? 41 I've got. 42. Shaking his head.

0:37:160:37:20

£41,000 then to you, sir, for the first time.

0:37:200:37:23

Second time at 41,000. Third and final time.

0:37:230:37:26

Well done, sir. Your paddle number is 777.

0:37:260:37:29

'That final successful bid of £41,000 was made by Paul.

0:37:290:37:35

'He's an engineer who lives in Preston.

0:37:350:37:37

'He bought the flat in partnership with his friend, Chris, who's a stockbroker.

0:37:370:37:42

'I met up with them at the flat to find out more.'

0:37:430:37:48

-Paul, Chris, good to meet you both. Congratulations.

-Thank you.

0:37:480:37:52

Tell me why you want to buy this little flat. Well, big flat, actually!

0:37:520:37:56

I actually came to have a look around and dismissed it

0:37:560:38:01

because my initial impression was that it was going to be a smaller place

0:38:010:38:05

in not too bad condition.

0:38:050:38:08

And what I found was a larger place but there's damp problems and various other issues here.

0:38:080:38:13

-I wrote it off initially.

-You shouldn't get excited about it cos it's a boring one-bedroom flat.

0:38:130:38:20

-Boring?

-Well, the other places we've got are six, seven bedrooms

0:38:200:38:24

-so it didn't...

-There's not a lot in it.

-It's got a cellar.

0:38:240:38:27

-Yeah.

-It's great! It's got huge great rooms, high ceilings. What do you want?

0:38:270:38:33

I was keen. I'd only seen the outside but I wanted to buy it.

0:38:330:38:36

But we had our eye on another place at the time that needed totally knocking around.

0:38:360:38:42

I think Paul quite fancied the idea of bashing something up a little bit.

0:38:420:38:46

But he rang me when I was having my lunch one day at work and said, "The auction's in 45 minutes,

0:38:460:38:51

"what do you think?" And so we thought we'd give it a whirl.

0:38:510:38:55

It'd be a shame if we didn't go and it went for a good price, I'd be disappointed.

0:38:550:38:59

So you were told you were going to the auction 45 minutes before it started?

0:38:590:39:03

-Literally. It was a mad rush.

-But the thing with Paul is...

0:39:030:39:07

That's why the partnership works so well.

0:39:070:39:10

He's the ideal person to be going to the auction. You know that he'll do the right thing as a friend.

0:39:100:39:16

-Why are you such an ideal guy?

-I can imagine, if I sent Chris, he'd end up going way above the guide price

0:39:160:39:21

and landing us in a more expensive property,

0:39:210:39:24

whereas I'd be quite regimented and I wouldn't go over my top.

0:39:240:39:28

But it was a little bit last-minute.

0:39:280:39:30

-Definitely.

-Yeah, it was. But it's all part of the fun, isn't it?

0:39:300:39:35

'I'm impressed. These guys seem to have a great working partnership.'

0:39:350:39:39

-Tell me about the relationship between you two.

-We're friends

0:39:390:39:43

and a few years ago, I was looking at buying a property

0:39:430:39:46

and as Chris already had a rental property, I thought I'd give him a call and see what he thought

0:39:460:39:51

and he said, "I'll go halves with you on the next one" so it started from there.

0:39:510:39:55

So we went halves on that first property and a couple of years later bought another one.

0:39:550:40:00

-Obviously, financially, it's easier to share, but also with the stress levels, it helps.

-Right.

0:40:000:40:08

-So you've invested together on all the properties you've got so far.

-Yeah.

-Yeah.

0:40:080:40:13

'Paul and Chris aren't full-time developers,

0:40:130:40:15

'as Paul still works as an engineer and Chris a stockbroker.

0:40:150:40:19

'They intend to use contacts in the trade they've worked with before.

0:40:190:40:23

'So what will they do here?'

0:40:230:40:25

-Talk me through exactly what you're going to do.

-We'll start from the front.

0:40:250:40:29

Metal railing round the front, we'll redo the flagged area at the front so you get a nice first impression.

0:40:290:40:35

We'll decorate the hall, stairs and landing, recarpet that so it looks pretty sharp.

0:40:350:40:41

And then go through the house and just give it a nice, fresh, clean, neutral look.

0:40:410:40:45

We have to, at the back, sort out the damp. So all the plaster's being chipped off

0:40:450:40:49

and replastered, reskimmed, once the damp's sorted and then it's a new bathroom and a new kitchen.

0:40:490:40:55

'Well, no mention of that cellar so far.

0:40:550:40:58

'So do the boys have any plans for that potentially beautiful basement?'

0:40:580:41:04

I think, realistically, it's going to be for future development.

0:41:040:41:07

At the moment, we'll concentrate on the main house, just for speed of getting it rented

0:41:070:41:12

and getting some money back, but there's potential in the future.

0:41:120:41:16

And it's a great storage space for any tenants.

0:41:160:41:18

-And the budget for all the work so far?

-£10,000.

0:41:180:41:22

-£10,000?

-Yeah.

-And a timescale?

0:41:220:41:24

-Six weeks.

-OK.

-Start tomorrow. We'll crack on quick. We're good to go.

0:41:240:41:28

-We've got everyone lined up for the next few weeks.

-Congratulations. Lovely to meet you.

0:41:280:41:33

-Good luck with it.

-Thank you.

0:41:330:41:36

Well, it may have been a bit of a last-minute decision

0:41:360:41:39

but I think Paul and Chris have got themselves a great property here.

0:41:390:41:43

But can they really restore it for ten grand and in six weeks?

0:41:430:41:46

You can find out later in the show.

0:41:460:41:49

They say time is a healer, but it can be an enemy if you're up against a deadline.

0:41:520:41:57

-What has happened to those properties?

-Let's go back and find out.

0:41:570:42:01

'We're back in New Cross, Southeast London,

0:42:040:42:07

'where this mid-terrace property sold at auction for £272,000

0:42:070:42:12

'to food exporter and importer Ishmael.

0:42:120:42:15

'The house was in a pretty poor state and split into two flats.

0:42:150:42:19

'But Ishmael had ambitious plans to squeeze in three apartments.

0:42:190:42:24

'He hoped to make developing less a part-time interest and more a full-time career.'

0:42:240:42:29

I'm changing my career focus gradually in the property business.

0:42:290:42:34

Because I am doing my import/export business, property was my part-time hobby.

0:42:340:42:39

In the last five months, I've decided it's going to be vice-versa.

0:42:390:42:43

'13 months later we're back to see if Ishmael had bitten off more than he could chew.

0:42:430:42:49

'Unfortunately, he hasn't got planning permission for three flats,

0:42:520:42:56

'although he is appealing the decision. So there are still just two, but they are much bigger.

0:42:560:43:02

'There's a three-bed flat on the first floor and in the loft space

0:43:020:43:06

'and a massive five-bed flat on the raised ground and lower ground levels.

0:43:060:43:10

'I had some misgivings about Ishmael's plans, but now can't wait to see the result.'

0:43:100:43:15

# I was blind

0:43:150:43:17

# Now I can see

0:43:170:43:20

# You made a believer

0:43:200:43:23

# Out of me

0:43:230:43:26

'The lower ground floor of the five-bed flat has been completely transformed

0:43:260:43:31

'from a dank and damp-ridden dungeon into a light and airy living space

0:43:310:43:34

'housing two rather than the three bedrooms intended.

0:43:340:43:39

'A modern bathroom has been fitted

0:43:390:43:41

'and a fabulous extension been built at the back,

0:43:410:43:44

'housing a stylish and spacious kitchen/dining room.

0:43:440:43:48

'Patio doors lead onto a newly-cleared decking and lawn area

0:43:480:43:52

'with a summer house at the top of the garden. If planning's ever approved,

0:43:520:43:56

'this floor would become a self-contained two-bedroom garden flat.'

0:43:560:43:59

I decided to do the extension and move the kitchen upstairs in here

0:43:590:44:03

'so that people can enjoy the garden in the summertime.

0:44:030:44:09

And this part is one of my favourites in this project.

0:44:090:44:14

'Moving upstairs to the raised ground floor area are the other three bedrooms.

0:44:140:44:20

'The damp has been eradicated, the rooms are fresh and light with a contemporary finish.

0:44:200:44:25

'The former kitchen has been split into a stylish bathroom and bedroom.

0:44:250:44:29

'The bedroom could be converted back into a kitchen in future

0:44:290:44:32

'and the front bedroom would become the lounge if this floor ever becomes a separate one-bedroom flat.

0:44:320:44:39

'The former rear bedroom and storage area have been converted into a spacious fifth bedroom

0:44:390:44:45

'with a double-aspect window.

0:44:450:44:47

'Moving upstairs to the three-bedroom maisonette, accessed from the main front door,

0:44:470:44:52

'and what was a dreary, outdated bedroom on the first floor has been brought back to life.

0:44:520:44:58

'Also on this floor is a modern bathroom.

0:44:580:45:00

'Up the beautifully refurbished stairs now to the second landing

0:45:000:45:04

'where the formally dreary reception room is warm, modern and inviting.

0:45:040:45:08

'The kitchen, once decimated by fire, is now a fully-functioning, modern galley kitchen.'

0:45:130:45:18

We were lucky. The fire damage, it was small.

0:45:190:45:22

It hasn't damaged the main structure, just damaged all the wall plastering and the floor.

0:45:220:45:28

'Up in the loft conversion, there are two bedrooms to the front and the rear of the roof space

0:45:300:45:35

'with a bathroom in between. It really is a gorgeous conversion.

0:45:350:45:39

'Initially, Ishmael estimated it would take six months to complete the job.

0:45:390:45:43

'So what are his thoughts 13 months on?'

0:45:430:45:46

The first six months was just the planning permission. We didn't do anything else.

0:45:460:45:52

And after six months, when we got the planning permission, we started the project.

0:45:520:45:57

It took six months, so the whole project was roughly one year.

0:45:570:46:01

'So a bit behind schedule,

0:46:010:46:03

'but allowing time for planning should always be factored in when you're property developing.

0:46:030:46:08

'How about Ishmael's budget? He'd originally hoped to keep it to £115,000.'

0:46:080:46:13

I just got £10,000 over the budget.

0:46:130:46:16

The reason, in the first budget, there wasn't any summer house

0:46:160:46:23

and all the roof tiling, front and back, needed changing.

0:46:230:46:26

And after that, I decided to retile the entrance and steam-clean the front and back of the house.

0:46:260:46:32

'I'm really impressed with the quality of this renovation.

0:46:320:46:36

'It's been completely gutted and transformed from top to toe, inside out.

0:46:360:46:40

'Ishmael bought the house for £272,000 and spend £125,000 on the renovation

0:46:400:46:48

'and a further 13 grand on fees and expenses,

0:46:480:46:51

'making a grand total of £410,000.

0:46:510:46:55

'We asked two local estate agents

0:46:550:46:57

'to tell us what they make of the property

0:46:570:46:59

'and whether Ishmael has made a good investment.'

0:46:590:47:02

I think they're very nice and very well done,

0:47:020:47:05

good specification

0:47:050:47:07

I very much like the layout and the way it's done

0:47:070:47:10

and I like the colouring, too. It's nicely done.

0:47:100:47:12

First impressions are it's a very good conversion.

0:47:120:47:15

Slightly unusual layout on the basement and the first floor level,

0:47:150:47:19

the entrance level. The top floor level's very nice, three bedrooms,

0:47:190:47:23

nice finish in the bathroom, the kitchen's a good space

0:47:230:47:26

and it's laid out nicely, so I'm very impressed.

0:47:260:47:28

'Ishmael already has the top floor three-bedroom flat on the market.

0:47:280:47:32

'How much can he hope to get for it?'

0:47:320:47:34

The top floor flat, in its present state as a three-bedroom with a loft conversion,

0:47:340:47:39

I would value at between £275,000 to £300,000.

0:47:390:47:44

The top floor three-bedroom flat I believe will resale somewhere between £275,000 and £300,000.

0:47:440:47:51

I think that is good and I put them on the market £275,000.

0:47:510:47:57

So I believe they're the correct price.

0:47:570:48:00

'The estate agents reckon the five-bed flat split over the two lower floors

0:48:000:48:05

'could achieve between £300,000 and £340,000.

0:48:050:48:08

'Ishmael will rent this flat out on a temporary basis

0:48:080:48:12

'but still has his fingers crossed he'll get permission to split it into two flats,

0:48:120:48:16

'a one-bedroom on the ground floor and a two-bed garden flat.

0:48:160:48:20

'If he is successful, what could the two flats make?'

0:48:200:48:23

A one-bedroom ground floor apartment in the local area would sell for approximately £180,000.

0:48:230:48:29

The one-bedroom flat upstairs I believe would resell around the £200,000 to £215,000 mark.

0:48:290:48:37

'What about the two-bedroom garden flat?'

0:48:370:48:40

The lower ground floor with the two bedrooms and a garden

0:48:400:48:43

would sell for approximately £275,000.

0:48:430:48:47

I believe the two-bedroom flat with the garden on the basement level would achieve around £250,000.

0:48:470:48:52

'These valuations, added to their estimates for the top floor flat,

0:48:520:48:56

'would mean Ishmael has a building worth between £705,000 and £790,000

0:48:560:49:03

'if he can split it into three flats.

0:49:030:49:05

'His total outlay here was £410,000,

0:49:050:49:08

'which could mean a pre-tax profit of between £295,000 and £380,000.

0:49:080:49:14

'So there's no doubt that splitting it into three is worth holding out for.

0:49:140:49:19

'Even if he doesn't win his appeal, he could still make a healthy pre-tax profit

0:49:190:49:23

'of between £165,000 and £230,000 by keeping it as two flats. How does he feel about that?'

0:49:230:49:30

I really enjoyed it because I like the deciding and doing the designs,

0:49:300:49:38

deciding which kitchen you're going to put in. I really enjoyed this job.

0:49:380:49:42

So when I sell all the property, when I refinance, I'm looking forward to starting another project.

0:49:420:49:50

'Time now to return to Preston where earlier in the programme

0:49:540:49:58

'business partners Paul and Chris bought the ground floor flat conversion of this terraced house

0:49:580:50:04

'plus the freehold of the whole property for £41,000.

0:50:040:50:09

'Paul's an engineer who lives in Preston

0:50:090:50:11

'and his friend, Chris, is a stockbroker.

0:50:110:50:14

'They're part-time developers with two other rental properties.'

0:50:140:50:18

I actually came to have a look around and dismissed it

0:50:200:50:25

because my initial impression was that it was going to be a smaller place.

0:50:250:50:29

He rang me when I was having lunch at work and said, "The auction's in 45 minutes, what do you think?"

0:50:290:50:34

So we thought we'd give it a whirl.

0:50:340:50:36

'Two months later, we return to meet up again with them

0:50:370:50:41

'to see how the work's progressed.'

0:50:410:50:44

I think we've done a good job.

0:50:440:50:46

'Adding those new railings and the work they've done to the front garden,

0:50:460:50:51

'plus the new windows they've installed have given the property much improved kerb appeal.

0:50:510:50:57

'Inside, the large bay-fronted living room has been completely transformed.

0:50:570:51:02

'The floors have been sanded back and look fabulous.

0:51:020:51:06

'They've certainly brought the best out of the original features

0:51:060:51:10

'in this lovely room with its high ceilings.

0:51:100:51:13

'The bedroom has been redecorated and the kitchen has been completely refitted

0:51:140:51:19

'with new units, appliances and flooring.

0:51:190:51:22

'The tired old bathroom suite has been brought right up to date.

0:51:240:51:28

'It's all looking good, but it's not been easy getting here.'

0:51:280:51:33

We've had quite a lot of work to do in here.

0:51:330:51:35

The main thing we had to contend with at the start

0:51:350:51:38

was damp all along the back of these walls

0:51:380:51:40

and into the main part of the house, but it certainly was at its worst in the kitchen area.

0:51:400:51:45

We ripped the kitchen out and stripped the walls back to the brickwork, had it replastered.

0:51:450:51:51

It looked absolutely horrendous during the process

0:51:510:51:54

but I think we're pretty pleased with how it's turned out

0:51:540:51:57

and it gives a nice, fresh, contemporary look.

0:51:570:52:01

'The kitchen looks out onto the garden, which is a real bonus here.

0:52:010:52:05

'The upstairs flat only has access via a fire escape.

0:52:070:52:11

'Paul and Chris both have full-time jobs, so who did all the work?'

0:52:110:52:15

We basically aimed to get tradesmen to do all the work,

0:52:150:52:19

but given the timescale, there's certain people that you can't fit in.

0:52:190:52:23

So we picked up the jobs that we couldn't line someone up to do.

0:52:230:52:27

'So they ended up doing a lot of the joinery work, like skirting boards.

0:52:270:52:32

'Paul's done a lot of plumbing, rerouting the pipes in the kitchen and bathroom.'

0:52:320:52:37

So the layout of the bathroom stayed pretty much the same.

0:52:390:52:42

We've had to move the shower from this wall here, where the window overhangs the bath,

0:52:420:52:46

cos we wouldn't get a good seal there, and we moved it over to this wall

0:52:460:52:50

and built a false wall to support the shower and overhang the bath.

0:52:500:52:55

It's been quite a fiddly job cos it's quite tight in here

0:52:550:53:00

with the amount of plumbing work, but I'm really happy with the result.

0:53:000:53:04

'As Chris and Paul bought the freehold for the whole property,

0:53:040:53:09

'they're responsible for the communal areas.'

0:53:090:53:12

When we first came to the property, the whole place felt dingy,

0:53:120:53:15

so we've tried to add more light and just brighten everything up, box in all the meter cupboards,

0:53:150:53:21

also the floor, and we've treated the upstairs tenants to a new stair carpet, so they're delighted.

0:53:210:53:27

'Nice one, Chris. I thought there was scope for a basement conversion down here.

0:53:270:53:32

'Have they given any more thought to that?'

0:53:320:53:37

We've had the fire officer round from the council to have a look at what we need to do in terms of regulations

0:53:370:53:42

and we do have to plasterboard the roof of the cellar and do a bit of work

0:53:420:53:47

but we'll just keep that simple and get it done to the minimum we need.

0:53:470:53:51

'They paid £41,000 for the flat and the freehold of the whole property.

0:53:510:53:57

'How much did the work cost? Did they stick to their budget?'

0:53:570:54:00

We've still got a couple of bills to come in but we're looking on target for just over £10,000.

0:54:000:54:05

We could try and get all the walls perfectly smooth and all the rest but it's about getting the right balance.

0:54:050:54:12

We wanted someone to think, "It's a nice place, it's clean, it's bright, it's fresh."

0:54:120:54:17

They can put the pictures up they want to, put mirrors up.

0:54:170:54:21

We wanted to get it to a level where we could show people and hopefully they'll be pleased.

0:54:210:54:25

'Time to get some advice from two local property experts.'

0:54:270:54:32

I think the best selling point of the property is probably the lounge

0:54:320:54:36

with the fireplace and the high ceilings.

0:54:360:54:38

It sets a very nice tone for the whole property.

0:54:380:54:41

First impressions of the property are really good.

0:54:410:54:44

The refurb's been done really well, very quickly,

0:54:440:54:47

really good standard. It's very nice to see that they've made an effort

0:54:470:54:50

to keep the communal areas very tidy, very clean,

0:54:500:54:53

and I think as anyone comes to look at the property,

0:54:530:54:56

one of the first things they will notice is the communal areas are very well cared for.

0:54:560:55:00

I think with the kitchen, they've done a really good job. Kept it very simple

0:55:000:55:05

but still nice, modern units, it's nice and spacious

0:55:050:55:08

so you can get a dining table in there if you wanted to.

0:55:080:55:11

'Although Paul and Chris have added this to their buy-to-let portfolio,

0:55:120:55:16

'I'm sure they'd be interested to hear how much the flat is now worth.

0:55:160:55:20

'They paid £41,000 at the auction and have spent just over £10,000.

0:55:200:55:25

'So is the flat now valued above £51,000?'

0:55:250:55:29

From a resale point of view, as it stands, I would think that the current value is £65,000 to £70,000.

0:55:290:55:37

I think the resale value of this property is going to be in the region of £70,000.

0:55:370:55:41

'That valuation range of £65,000 to £70,000

0:55:410:55:46

'would represent a gross profit, before the usual selling expenses,

0:55:460:55:50

'of between £14,000 and £19,000.

0:55:500:55:53

'Could that sort of figure tempt them to sell?'

0:55:530:55:56

I wouldn't sell it for anything less than 80. 80-plus.

0:55:560:55:59

Upstairs sold for 86 without a freehold.

0:55:590:56:03

At the end of the day, we're not selling, so it doesn't really matter, but a bit disappointed.

0:56:030:56:08

But I wont lose sleep because I'm sure, by the time we sell it, it'll be worth a little bit more.

0:56:080:56:13

'The good news is that Paul and Chris have already found a tenant.

0:56:130:56:17

'Let's hope they haven't let the flat for less than they could have.'

0:56:170:56:21

From a rental point of view, I would expect the property to rent at £425 to £450 per calendar month.

0:56:210:56:27

I think the rental figure would be £450 per calendar month.

0:56:270:56:31

Yeah, that's not too far off. Obviously, it's rented already,

0:56:310:56:36

on day one of showing the first person, for £450. So that's OK.

0:56:360:56:42

'For their first purchase under the hammer, Paul and Chris had to race to the auction.

0:56:420:56:47

'So are they happy they crossed the finish line?'

0:56:470:56:50

Yeah, I'm absolutely pleased we decided to go for it.

0:56:500:56:53

Even though it was a last-minute one, it definitely was the right decision

0:56:530:56:57

and if I could buy another one of these tomorrow, I would.

0:56:570:57:00

-You'd buy another ten tomorrow!

-THEY LAUGH

0:57:000:57:03

We'll be back next time with more auction rooms all around the country.

0:57:060:57:09

-Join us then for more Homes Under The Hammer.

-See you.

-Goodbye.

0:57:090:57:12

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0:57:140:57:18

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0:57:180:57:22

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