0:00:02 > 0:00:04Despite the ups and downs of the property market,
0:00:04 > 0:00:06now is still a good time to buy at the auction.
0:00:06 > 0:00:10If you're prepared to take the plunge, auctions can be a great place to start.
0:00:10 > 0:00:16They're exciting, they're frantic, but you can get yourself a bargain buying your home under the hammer.
0:00:41 > 0:00:46Some properties are incredibly popular at the auction and others just go unsold.
0:00:46 > 0:00:50And the auction room can sometimes be a difficult place to conquer.
0:00:50 > 0:00:54So what won the hearts of the buyers on today's show?
0:00:55 > 0:01:01'In Norfolk, the space above this former hairdressers has blown me away.'
0:01:01 > 0:01:04I did not expect to find such a fantastic flat.
0:01:05 > 0:01:10'The regulars have left this Kent working men's club, but memories remain.'
0:01:10 > 0:01:14You can so imagine this place in its heyday, everyone up dancing.
0:01:15 > 0:01:21'And in Yeovil, this picture-perfect cottage has some surprising accommodation.'
0:01:23 > 0:01:25Yeah, for a little cottage, it's a good start.
0:01:26 > 0:01:29'All of these properties went to auction.
0:01:29 > 0:01:35- 'We'll find out who bought them and what they paid when they went under the hammer.'- All done?
0:01:38 > 0:01:44I'm on the beautiful North Norfolk coastline in the village of East Runton.
0:01:44 > 0:01:48Formerly a fishing village, it's now a popular holiday destination.
0:01:48 > 0:01:51And you know what? You can see why.
0:01:52 > 0:01:59'As well as the beach and holiday parks, the centre of the village sits around this picturesque pond.
0:01:59 > 0:02:03'An idyllic spot indeed.'
0:02:03 > 0:02:06The property I'm here to see is right in the centre of the village.
0:02:06 > 0:02:11It's a former hairdressers shop but it's actually one of those mixed use developments that I really like.
0:02:11 > 0:02:15Basically, a commercial unit downstairs and residential upstairs.
0:02:15 > 0:02:18Had a guide price of 75,000 quid. Let's take a look inside.
0:02:21 > 0:02:25# The first cut is the deepest
0:02:25 > 0:02:30'With its position on the high street, it already ticks box number one.
0:02:30 > 0:02:34'When it comes to running a local business, if you want to attract passing trade,
0:02:34 > 0:02:37'you need to be in the right spot.'
0:02:37 > 0:02:40You certainly can't knock the location. So, what could you do with it?
0:02:40 > 0:02:44At the moment, it has got classification for its existing use,
0:02:44 > 0:02:50which was a hairdressers. So what could you use it for if you didn't want to set up another hairdressers?
0:02:50 > 0:02:54Well, something like an accountants, maybe an estate agents, a solicitors.
0:02:54 > 0:02:58If you wanted to do something else with it, and it's not a bad size space
0:02:58 > 0:03:02for all sorts of different things, if you wanted to set up a sandwich bar
0:03:02 > 0:03:05or fast food or something like that, you'd have to get change of use.
0:03:05 > 0:03:10But in terms of fitness for purpose, I like it. It's got high ceilings, it's light and airy.
0:03:10 > 0:03:14Big room at the front, smaller room at the back. Little kitchenette there.
0:03:14 > 0:03:18Bit of playing around, it could be a really nice unit.
0:03:18 > 0:03:21And there's more. There's an upstairs.
0:03:21 > 0:03:26'Of course, the other option would be to change the space back to residential use.
0:03:26 > 0:03:31'But that would require planning permission. I would be tempted to keep it as a business
0:03:31 > 0:03:34'because even if you weren't going to take it on yourself,
0:03:34 > 0:03:37'you could always earn some extra cash by renting it out.'
0:03:39 > 0:03:43I have to say that coming up here is an absolutely revelation
0:03:43 > 0:03:48because I did not expect to find such a fantastic flat. In fact, potentially two flats.
0:03:48 > 0:03:51On this first floor, a kitchen area there,
0:03:51 > 0:03:56loo there and then through into a really large living room area
0:03:56 > 0:04:00which I think you could turn into a kind of bedroom/living area.
0:04:00 > 0:04:02So really nice. OK, it needs a bit of sorting out
0:04:02 > 0:04:06but it's got a lovely feel to it, I can't quite describe it,
0:04:06 > 0:04:09but it's lovely, basically. And there's more upstairs.
0:04:11 > 0:04:14'The bathroom and kitchen certainly need a lot of work.
0:04:14 > 0:04:18'And the original features would really be worth renovating
0:04:18 > 0:04:21'to restore the character of the place.'
0:04:23 > 0:04:26Lots of light pouring in from the roof light there.
0:04:26 > 0:04:30A really nice feel up here, as well. What have we got?
0:04:30 > 0:04:32Two bedrooms, one there with its own little sink,
0:04:32 > 0:04:37another one there and then through to another really good size living area
0:04:37 > 0:04:41which has got a sink, so this could definitely be another kitchen/living room.
0:04:41 > 0:04:46As I said, I think you'd have maybe a flat downstairs, a separate flat up here.
0:04:46 > 0:04:51That is a great way to turn this into a money-making machine. But there's something I've forgotten.
0:04:51 > 0:04:55Look out the window! You've got the sea just there! This is a really popular holiday spot
0:04:55 > 0:05:00so why not think about converting the upstairs here into a holiday let?
0:05:00 > 0:05:06That could be really interesting. So, all in all, so many options. It's a great place!
0:05:06 > 0:05:11# If you're fond of sand dunes and salty air
0:05:11 > 0:05:15'But to bring it up to a decent standard won't be cheap.
0:05:16 > 0:05:23'The electrics are clearly out of date and I'd imagine it could do with central heating being fitted.
0:05:23 > 0:05:27'Once you start peeling back some of the wallpaper,
0:05:27 > 0:05:34'I wouldn't be at all surprised if the plaster came with it. So plenty to do. But it would be worth it.'
0:05:34 > 0:05:38At the rear of the property, a little courtyard area
0:05:38 > 0:05:42and a real bonus, these little outbuildings.
0:05:42 > 0:05:46A loo in that one, storage space in the others. I don't know quite what you'd do with them.
0:05:46 > 0:05:50I would just clean them up and use them to store things. Maybe if you had holidaymakers,
0:05:50 > 0:05:54this is where they could keep their beach balls and paraphernalia.
0:05:54 > 0:06:00One exciting thing is, though, you do have this which is an access onto a car park at the back.
0:06:00 > 0:06:04I don't know what the legalities are of whether you've got rights of way.
0:06:04 > 0:06:08That's something for your solicitor to check out. If you could get through there,
0:06:08 > 0:06:12it opens up a host of possibilities. But coming back to that guide price,
0:06:12 > 0:06:14this place has a lot to offer.
0:06:14 > 0:06:22'Yes, just £75,000. Great potential with a sea view. What more could you ask for?'
0:06:22 > 0:06:28# If you're fond of sand dunes and salty air
0:06:28 > 0:06:32'To find out a bit more about it and the opportunities here,
0:06:32 > 0:06:35'we invited a local estate agent round to have a look.'
0:06:35 > 0:06:39It's a big Victorian house, and as quite often is the case
0:06:39 > 0:06:43with big Victorian houses, they do take a lot of upkeep
0:06:43 > 0:06:46and if they're let slip, they deteriorate really quickly.
0:06:46 > 0:06:49This property is in need of a full refurbishment.
0:06:51 > 0:06:57'What's her advice here? Keep it as a shop and convert upstairs into more accommodation?'
0:06:58 > 0:07:02The residential parts of the property I would enhance as a three-bedroom maisonette,
0:07:02 > 0:07:07keeping the sitting room, kitchen and bathroom on the first floor
0:07:07 > 0:07:11and three good bedrooms on the second floor. It has lovely sea views
0:07:11 > 0:07:16and it would be perfect for somebody to live and occupy the building or rent out.
0:07:16 > 0:07:20'So if you were an investor looking to do up and sell on,
0:07:20 > 0:07:22'how much could it be worth?'
0:07:24 > 0:07:29The resale value as a whole, once renovated with commercial ground floor and three-bedroom maisonette
0:07:29 > 0:07:36on the first and second floor, I would estimate to be in the region of £200,000 to £220,000.
0:07:36 > 0:07:39'What's the potential here for a buy-to-let investor?'
0:07:40 > 0:07:46Once renovated, the residential parts of the property would be £600 to £650 per calendar month.
0:07:46 > 0:07:53The commercial property rental value would be in the region of £5,000 to £6,000 a year.
0:07:53 > 0:07:56That would be dependant on the sort of business that's in here.
0:07:56 > 0:08:00However, my advice and the best way to use these properties
0:08:00 > 0:08:04is to live and occupy your own business so that you're developing the property as one.
0:08:04 > 0:08:09That's the most feasible way to use these big Victorian houses.
0:08:11 > 0:08:17This property has two things that I really like - flexibility and potential.
0:08:17 > 0:08:21And for that £75,000 guide price, it's got to be a great one to go for.
0:08:21 > 0:08:24Let's see who fancied it when it went under the hammer.
0:08:24 > 0:08:26We have lot number 39.
0:08:26 > 0:08:32Delightful little property. Lots of accommodation, great views.
0:08:32 > 0:08:3570,000 to start me. That's £70,000.
0:08:35 > 0:08:3965 if you wish. 65 over there. Thank you. 65 I'm bid. At 65.
0:08:39 > 0:08:42At £65,000. 67 and a half.
0:08:42 > 0:08:4570. That's 70. 72 and a half.
0:08:45 > 0:08:4775 for you, sir. 75.
0:08:47 > 0:08:50At 75. I'll take one now.
0:08:50 > 0:08:5276. At 76.
0:08:52 > 0:08:5577 here at the front. At 77. 78 for you, sir?
0:08:56 > 0:08:5878,000 I'm bid. OK, I'll take 500.
0:08:58 > 0:09:0278 and a half. At 78 and a half. 79 at the back.
0:09:02 > 0:09:05At £79,000.
0:09:05 > 0:09:08£80,000. Another 500, sir?
0:09:08 > 0:09:1280,500. 81,000.
0:09:12 > 0:09:15I'll take 250 if you want to try another one.
0:09:15 > 0:09:18£81,000, shaking your head. I'm going to sell it.
0:09:18 > 0:09:22At £81,000. Bidding's on my left at 81,000 for the first time.
0:09:23 > 0:09:28Second time. Third and final time, are we all done at 81,000?
0:09:28 > 0:09:29Yours, sir.
0:09:29 > 0:09:34'That final successful bid of £81,000 came from Nigel.
0:09:34 > 0:09:40'He's a self-employed property investor and developer who lives about 12 miles away.
0:09:40 > 0:09:45'I met up with him and his daughter Hannah to find out their plans for the place.'
0:09:47 > 0:09:50- Nigel, Hannah, great to meet you both. Congratulations.- Thank you.
0:09:50 > 0:09:56- Tell me why you wanted to buy this place.- Well, we bought it as an investment to begin with.
0:09:56 > 0:10:00We were looking for a good deal at the auction, which I think we got.
0:10:00 > 0:10:06And that was the reason, really, to refurbish it and sell it on for profit.
0:10:06 > 0:10:09- So what's changed?- Well, I'm studying to be a hairdresser
0:10:09 > 0:10:14and it just so happened that the property is a hairdressers downstairs
0:10:14 > 0:10:18so it became something that would be better for me than just to sell on.
0:10:18 > 0:10:21So it's going to be my home as well as a business.
0:10:21 > 0:10:27- Oh, wow! So you only discovered this after the event?- Kind of, yes. That's how it works in our family.
0:10:27 > 0:10:32It's a change of plan but I think it's for the right reasons.
0:10:32 > 0:10:35So what did you think? At what point did you get involved?
0:10:35 > 0:10:38I didn't know Dad was even going to the auction
0:10:38 > 0:10:41so it wasn't until he came back and I had a look at the property
0:10:41 > 0:10:46and I kind of fell in love with it a bit. It's a lot of space for the amount of money
0:10:46 > 0:10:48and it's a nice area, I really like the town.
0:10:48 > 0:10:52- So where are you at the moment? - I'm at college at the moment.
0:10:52 > 0:10:56- I'm living with Mum and Dad.- So this is going to be your first home.- Yep.
0:10:56 > 0:11:00It couldn't be much better, really, could it?
0:11:00 > 0:11:03# Who cut your hair?
0:11:03 > 0:11:06# Who cut your hair?
0:11:06 > 0:11:09# Who cut your hair?
0:11:09 > 0:11:15The only downside is that your investment and quick money-making venture's gone out the window.
0:11:15 > 0:11:20Slightly, yes, but the main thing is that Hannah gets on
0:11:20 > 0:11:23and we're in a position to help her and happy to do so.
0:11:23 > 0:11:27- There's a big difference between cutting hair and running a business. - Yeah.
0:11:27 > 0:11:32- What kind of help are you going to get in setting the business up? - I've already got one friend
0:11:32 > 0:11:37who's been a beauty therapist and run her own business. She's going to help me and be part of my business.
0:11:37 > 0:11:40- So it's going to be a beauty therapists, as well?- Yeah.- Great.
0:11:40 > 0:11:45Then I've got another friend who's also doing hairdressing and the business side, as well.
0:11:45 > 0:11:47And I've got a lot of support from my family.
0:11:49 > 0:11:55'What a turn up for Hannah! As plans go, this one's changed quite considerably since the auction.'
0:11:57 > 0:11:58# Hairdresser
0:11:59 > 0:12:03'But Nigel seems to be taking it all in his stride.'
0:12:03 > 0:12:04# Hairdresser
0:12:06 > 0:12:11- Tell me about you. What's your background?- For the past 25 years,
0:12:11 > 0:12:13I've been in building and property development.
0:12:13 > 0:12:19- So this was going to be part of a portfolio of stuff that you're working on?- Yes, it was going to be.
0:12:19 > 0:12:22Tell me what you're going to do with the place
0:12:22 > 0:12:25to get it sorted out, habitable and operating as a business.
0:12:25 > 0:12:29Upstairs and the floor above we're going to make into three bedrooms,
0:12:29 > 0:12:34one of which will be the en suite with the view to the sea, the big bedroom.
0:12:34 > 0:12:37This will be the lounge as is
0:12:37 > 0:12:40with a bathroom and a kitchen on the first floor
0:12:40 > 0:12:45- and down below will be the shop and we're going to have a downstairs toilet, aren't we?- Mm-hm.
0:12:45 > 0:12:51What do you need to do physically to convert upstairs and also to shop fit the hairdressers?
0:12:51 > 0:12:55Well, there is a bit of a damp problem with some of the walls,
0:12:55 > 0:12:58so they'll probably have to be hacked off and replastered.
0:12:58 > 0:13:04It'll have to be rewired, replumbed. The roof needs some attention.
0:13:04 > 0:13:06Replace the windows with double glazing.
0:13:06 > 0:13:12Keep as many period features as we can. There are some nice ones in here, the fireplaces.
0:13:12 > 0:13:18- What kind of money have you set aside to do the work?- I think round about £30,000 to £35,000
0:13:18 > 0:13:20should put it all back together again.
0:13:20 > 0:13:25- Does that include shop-fitting the hairdressers? - That's a little bit vague,
0:13:25 > 0:13:28but depending on what Hannah might want in there,
0:13:28 > 0:13:33- that budget could go up a bit. - What kind of timescale for getting it sorted?
0:13:33 > 0:13:36We will be starting pretty soon.
0:13:36 > 0:13:39I guess it's going to be four or five months.
0:13:39 > 0:13:48I will be doing the majority of the renovation work myself, with Hannah, and my son. It's a family effort.
0:13:50 > 0:13:54'It's lovely to hear that the family will be pitching in to help out.
0:13:54 > 0:13:59'It's not every day that your dad hands you a business opportunity and a new home.'
0:13:59 > 0:14:01# Hairdresser
0:14:02 > 0:14:09So literally, in the space of a few weeks, you've gone from living at home and working on your studies
0:14:09 > 0:14:15- to suddenly having your own place and potentially a business. How do you feel?- Overwhelmed, really.
0:14:15 > 0:14:19When Dad suggested it, I was a bit hesitant almost
0:14:19 > 0:14:23cos I've got to cover the mortgage and everything myself, so it's a big step,
0:14:23 > 0:14:28but it's going to be a good opportunity. How many people can say they've started a business at 20?
0:14:28 > 0:14:32Congratulations. Good luck with the new business venture, Hannah. Well done, Dad.
0:14:32 > 0:14:36- Thank you very much.- And I look forward to seeing how you get on.
0:14:36 > 0:14:39# The first cut is the deepest
0:14:39 > 0:14:41# Baby I know
0:14:41 > 0:14:44# The first cut is the deepest
0:14:44 > 0:14:47Isn't it great when things turn out like that?
0:14:47 > 0:14:51What more perfect opportunity for Hannah could this be?
0:14:51 > 0:14:53A place to live and a place to start her own business.
0:14:53 > 0:14:58Still, there is a big difference between cutting hair and cutting it in business.
0:14:58 > 0:15:02So how is she going to get on? You can find out later in the show.
0:15:06 > 0:15:11'I'm in the Kent village of Elvington, six miles northeast of Dover.
0:15:11 > 0:15:14'The village was built in the early 1900s
0:15:14 > 0:15:19'as homes for coalminers and their families working in the nearby Tilmanstone colliery.
0:15:20 > 0:15:25'The property I've come to see today contains a fully functioning bar, committee room, stage,
0:15:25 > 0:15:28'dance floor and even its own games room.'
0:15:28 > 0:15:34I know what you're thinking. You're imagining a huge stately home, a country pile.
0:15:34 > 0:15:40Well, no. This is today's auction lot in all its faded glory.
0:15:40 > 0:15:42It's a former Elvington working man's club
0:15:42 > 0:15:50and this immense building had a guide of just £120,000 to £125,000.
0:15:50 > 0:15:53Let's go inside and find that billiard room.
0:15:55 > 0:15:59'This club was a much-loved focal point of the community
0:15:59 > 0:16:03'but served its last pint over nine months ago.'
0:16:03 > 0:16:07# Look what I found in my beer
0:16:07 > 0:16:13'It's a shame to see, but like a lot of workers' social clubs across the country,
0:16:13 > 0:16:17'it's fallen victim to changing times. It sits on almost half an acre of land
0:16:17 > 0:16:20'so there's a lot of property here.'
0:16:20 > 0:16:26The first thing that hits you in here is the enormity of the size of this room!
0:16:26 > 0:16:31It's massive! And it stinks of stale beer, I have to say.
0:16:31 > 0:16:38But look at it! Look! A poor old dance floor has been absolutely wrecked.
0:16:38 > 0:16:43There's bits of ceiling falling down. You can see the old dartboard over there.
0:16:43 > 0:16:47And look at this. I love this! The old tombola.
0:16:47 > 0:16:51Stick all the raffle tickets in it. There really is quite a few interesting little bits.
0:16:51 > 0:16:56A lovely big stage over there. You can so imagine this place in its heyday,
0:16:56 > 0:17:01everyone up dancing, having a good time. I'm going to have a good old look around.
0:17:01 > 0:17:07'Well, look past the mess and you'll appreciate just how much accommodation there is here.
0:17:07 > 0:17:13'Apart from this main hall, there's a separate committee room. There are also several toilet facilities
0:17:13 > 0:17:19'and a large manager's office with a separate store room that leads up to the second floor accommodation.
0:17:19 > 0:17:22'Up there are three bedrooms and a bathroom.
0:17:22 > 0:17:27'But unfortunately, time has been called on this place.'
0:17:27 > 0:17:29# Closing time
0:17:29 > 0:17:32# One last call for alcohol
0:17:32 > 0:17:36# So finish your whisky or beer
0:17:38 > 0:17:42Oh. And so finally here we are in the billiard room. You've found me.
0:17:42 > 0:17:47And it seems the perfect opportunity for me to give you some background history to this place.
0:17:47 > 0:17:52Tilmanstone Colliery Working Man's Club was founded in 1916
0:17:52 > 0:17:55and moved into this premises soon after.
0:17:55 > 0:18:00Some 30 years or so passed before women were allowed entry.
0:18:00 > 0:18:05Finally, in 1952, they were allowed to become members for the first time
0:18:05 > 0:18:08but they were not allowed to use this billiard room.
0:18:08 > 0:18:11Later, they were allowed to use the room on special occasions
0:18:11 > 0:18:17but it wasn't until 1960 that ladies were allowed to use this room whenever they wanted to.
0:18:17 > 0:18:20# Here come the girls
0:18:21 > 0:18:24# Here come the girls
0:18:25 > 0:18:30'So the working men's club became a club for working people.
0:18:30 > 0:18:33'But now its days of hard graft have ended.'
0:18:35 > 0:18:39So what can you do with this epic property?
0:18:39 > 0:18:44Well, the auction catalogue hints at the potential for conversion or redevelopment.
0:18:44 > 0:18:48Having looked around, I would personally opt for redevelopment.
0:18:48 > 0:18:50But what if you wanted to convert this place?
0:18:50 > 0:18:55Dover Council can't be sure of the property's exact classing.
0:18:55 > 0:18:58Because it's been a social club for so many years,
0:18:58 > 0:19:02their records just don't date back to inception and official classing of this time.
0:19:02 > 0:19:08One thing's for certain, though. It isn't residential and so whichever category it falls into,
0:19:08 > 0:19:11it will need permission for change of use.
0:19:11 > 0:19:13'Given the potential planning issue,
0:19:13 > 0:19:18'this seems like an investment which I suspect only a seasoned developer would want to take on.
0:19:19 > 0:19:23'But does a local estate agent think that the pint glass is half full
0:19:23 > 0:19:27'or half empty when it comes to this former social club?'
0:19:28 > 0:19:31# Look what I found in my beer
0:19:31 > 0:19:33This area is predominantly residential,
0:19:33 > 0:19:38it's a small village and it's all residential property in surround,
0:19:38 > 0:19:43so I think the planners would favour a residential redo element of this site.
0:19:44 > 0:19:49'That's good news. But how many houses could you feasibly get on the plot?'
0:19:49 > 0:19:52I think if this was a site for total redevelopment,
0:19:52 > 0:19:55it's worth looking at trying to get eight to ten houses here.
0:19:55 > 0:20:00'If the building wasn't demolished but converted into residential accommodation,
0:20:00 > 0:20:03'what are the options then?'
0:20:03 > 0:20:06This building's not easy to convert into residential.
0:20:06 > 0:20:12That would be quite difficult. But you'd get a couple of large units from it.
0:20:12 > 0:20:15'It doesn't sound as though that would be as lucrative.
0:20:15 > 0:20:21'So if you were to build several two or three-bedroom houses on the plot, how much might you make?'
0:20:21 > 0:20:27The value of resale houses here would be in the order of £140,000 to £150,000 each,
0:20:27 > 0:20:31depending on the size you're able to put onto the site.
0:20:31 > 0:20:35Convert or redevelop? That is the choice here.
0:20:35 > 0:20:38And it all comes down to one thing - planning permission.
0:20:38 > 0:20:41This will determine what's possible.
0:20:41 > 0:20:46And I know what I'd love to see in its place. A brand new row of houses.
0:20:46 > 0:20:50Let's find out who wanted this opportunity as we go to auction.
0:20:50 > 0:20:54And over the page to lot 74 which is Elvington Working Men's Club.
0:20:54 > 0:20:56Club premises and manager's flat.
0:20:56 > 0:21:00Potential for conversion or redevelopment. 120 can I say?
0:21:00 > 0:21:03120 can I say? 100 do I see?
0:21:03 > 0:21:07100 I'm bid. And 10.
0:21:07 > 0:21:10120. 120 I'm bid. And 5 now if you like.
0:21:10 > 0:21:12125 in a fresh place.
0:21:12 > 0:21:14130 just in front of you.
0:21:14 > 0:21:16132. 1?
0:21:16 > 0:21:19131. 132.
0:21:19 > 0:21:22132. And 3. And 4?
0:21:22 > 0:21:27134. 134. 135. And 6.
0:21:27 > 0:21:30Yep, 136. And 7. And 8.
0:21:30 > 0:21:33138. 138. And 9.
0:21:33 > 0:21:35And 40.
0:21:35 > 0:21:36140. 141.
0:21:36 > 0:21:39Is that a bid? 141.
0:21:39 > 0:21:42142. Yes? 142.
0:21:42 > 0:21:45And 3. 143. 143.
0:21:45 > 0:21:49Make it 145, sir, see if you can knock him out. 145. Sometimes works.
0:21:49 > 0:21:51Or don't you want to go...? 144.
0:21:51 > 0:21:54145 I'm bid. 146. It's against you again.
0:21:54 > 0:21:56Coming in again? 145 and a half.
0:21:56 > 0:21:58146.
0:21:58 > 0:22:00146 and a half again.
0:22:00 > 0:22:03146 and a half. 147.
0:22:03 > 0:22:06147 and a half. 148. 148.
0:22:06 > 0:22:10148 and a half. 148 and a half.
0:22:10 > 0:22:12149. And a half.
0:22:12 > 0:22:15149 and a half. And 150.
0:22:15 > 0:22:17And a half again. A half again.
0:22:17 > 0:22:19151.
0:22:19 > 0:22:21151 and a half?
0:22:21 > 0:22:24No? 151,000 then for the first time.
0:22:24 > 0:22:27151,000 for the second time.
0:22:27 > 0:22:30151 for the third and final time sitting down there.
0:22:30 > 0:22:35All done? £151,000. Well done, sir. 7954.
0:22:35 > 0:22:42'That final bid of £151,000 was made by father and son team Sean and Raj.
0:22:42 > 0:22:45'Raj has run an IT business in the past
0:22:45 > 0:22:48'and his dad Sean's been a property developer for many years.
0:22:48 > 0:22:52'Raj is now looking to move into property development full time.
0:22:52 > 0:22:56'This is the first big project he'll be involved in
0:22:56 > 0:22:59'so it's just as well he's got such an experienced mentor.
0:23:00 > 0:23:04'I met up with Raj to find out more about their plans.'
0:23:07 > 0:23:11Raj, congratulations. Thank you so much for coming along today.
0:23:11 > 0:23:15- Happy with your purchase? - Very, very happy at the moment, yeah.
0:23:15 > 0:23:17Where do you think the potential lies with this?
0:23:17 > 0:23:24We've been talking to the locals here and the council
0:23:24 > 0:23:28and we believe that there is scope here to demolish this
0:23:28 > 0:23:30and build a few small properties on here.
0:23:30 > 0:23:36So how do you think the locals will take to a new housing development here?
0:23:36 > 0:23:39We've been speaking to locals and asked them what they'd like here
0:23:39 > 0:23:44and everyone has said this is ideal for redevelopment into houses.
0:23:44 > 0:23:48They're not happy with putting apartments here. They want houses.
0:23:48 > 0:23:55- And have you taken it a step further and spoken to the local authorities? - We spoke to them prior to purchase
0:23:55 > 0:23:59to sound them out, what they think we could do here.
0:23:59 > 0:24:05We have one obstacle and that's to prove that removing this amenity from this area
0:24:05 > 0:24:08is not going to be detrimental to the area.
0:24:08 > 0:24:14There is a couple of other drinking places quite close so I think we could get around the amenity problem.
0:24:14 > 0:24:18So, Raj, let's say you do get the planning permission.
0:24:18 > 0:24:20Will you then move on and develop this site?
0:24:20 > 0:24:23Or is there any chance you may just sell it on?
0:24:23 > 0:24:27The plan at the moment is that we are going to go all the way through to sale.
0:24:27 > 0:24:30So we will be selling the individual properties.
0:24:30 > 0:24:36But after the planning's in, we will re-evaluate and see which is going to be the best path for us.
0:24:38 > 0:24:41'Raj hopes he'll get planning permission for ten houses here.
0:24:41 > 0:24:45'That would give them a tremendous return on their investment.'
0:24:45 > 0:24:49So how much do you think you will market each individual property for
0:24:49 > 0:24:53- once you've built them on this site? - We've talked to estate agents.
0:24:53 > 0:24:58I think we could go for around 145 to 150 per property.
0:24:58 > 0:25:04'If they did get between £145,000 and £150,000 per property on ten houses,
0:25:04 > 0:25:07'that could generate up to £1.5 million,
0:25:07 > 0:25:11'even allowing for demolition and building costs.
0:25:11 > 0:25:17'So there could be a significant profit to be made on that initial £151,000 they paid at auction.'
0:25:17 > 0:25:22How much involvement are you going to have once the development starts to take place?
0:25:22 > 0:25:27We're not going to be doing any building, it'll be sub-contracted out. We're the developers.
0:25:27 > 0:25:31The actual people doing the work will be a building company.
0:25:31 > 0:25:34Are you a little bit worried about what may lie under here?
0:25:34 > 0:25:38Yeah, I am a little bit worried that there might be a mine underneath here
0:25:38 > 0:25:42but we've had the report from the mining council and wherever
0:25:42 > 0:25:48and they say that all movement has stopped and they don't see that there is a mine underneath here.
0:25:48 > 0:25:54- But until we actually do the surveys, we don't know. - You're not going to know.
0:25:54 > 0:25:58# Working in a coal mine, going down, down, down
0:25:58 > 0:26:00'As Elvington is an old coalmining village,
0:26:00 > 0:26:04'the prospect of encountering a disused mine is very real.
0:26:04 > 0:26:08'That could put a serious dampener on Raj's development plans.
0:26:08 > 0:26:11'However, he's confident this won't be a problem.'
0:26:11 > 0:26:14Round here, it's all chalk anyway.
0:26:14 > 0:26:17So if we hit chalk pretty quick then we're up.
0:26:17 > 0:26:19You'll be dancing around. Whoo!
0:26:19 > 0:26:22I'm already dancing. HE LAUGHS
0:26:22 > 0:26:26- Are you happy with what you've bought?- Absolutely. - Excited?- Absolutely.
0:26:27 > 0:26:32'Well, Raj does have a dance floor, so why not use it while it's still there?'
0:26:34 > 0:26:37Lots of decisions for Raj and his dad Sean.
0:26:37 > 0:26:39Will they get that all important planning and develop?
0:26:39 > 0:26:43Or will they secure the planning, sell the site and move onto the next one?
0:26:43 > 0:26:48It's their first project together and although Sean has years of experience,
0:26:48 > 0:26:50how will the father and son team work together?
0:26:50 > 0:26:53You can find out later on in the show.
0:26:54 > 0:27:00'Coming up in Yeovil, the work on this former railway worker's cottage seems on track.'
0:27:00 > 0:27:03All in all, I really like this little cottage.
0:27:04 > 0:27:08'We're back at the club in Kent. But will the drinks be on the house?'
0:27:08 > 0:27:14We managed to obtain planning permission for eight properties on this piece of land.
0:27:15 > 0:27:20'But first we return to Norfolk where it's been a hair-raising few months.'
0:27:20 > 0:27:24The general condition of the property was pretty bad, really.
0:27:26 > 0:27:30'We're back now to the Norfolk seaside town of East Runton.
0:27:30 > 0:27:34'Earlier we saw Nigel, a self-employed property developer,
0:27:34 > 0:27:37'pay £81,000 for this three-floor property.
0:27:37 > 0:27:40'It comprised a former hairdressers on the ground floor
0:27:40 > 0:27:43'plus two floors of accommodation.
0:27:43 > 0:27:47'Nigel initially bought it as an addition to his portfolio
0:27:47 > 0:27:52'but his daughter Hannah's circumstances meant that there was a change of plan.'
0:27:52 > 0:27:56- So what's changed? - I'm studying to be a hairdresser
0:27:56 > 0:28:00and it just so happened that the property has a hairdressers downstairs
0:28:00 > 0:28:05and so it became something that would've been better for me than just to sell on.
0:28:05 > 0:28:08'Well, it's now eight months later.
0:28:08 > 0:28:13'From the outside, Hannah's hairdressers has had a makeover.
0:28:15 > 0:28:20'But it's upstairs in the living accommodation where the big transformation has taken place.
0:28:20 > 0:28:25'In the large bay-fronted living room, the floors have been painted white
0:28:25 > 0:28:28'and a stunning beach-house look has been created.
0:28:28 > 0:28:33'The wiring and plumbing have been replaced throughout.
0:28:33 > 0:28:35'All the windows have been changed.
0:28:35 > 0:28:38'And the white flooring continues in the bathroom.
0:28:38 > 0:28:42'A huge bath has been put in, plus a separate shower.
0:28:42 > 0:28:44'A new kitchen has been installed
0:28:44 > 0:28:49'with some high-spec units and appliances.'
0:28:49 > 0:28:53In the kitchen, I wanted to choose something that was quite oldy-worldy.
0:28:53 > 0:28:57I really like the cream cabinets against the green of the walls.
0:28:57 > 0:29:00I spent a lot of time thinking about the kitchen.
0:29:00 > 0:29:04It's just a really big thing in the house
0:29:04 > 0:29:06so it was really important to me to get it right.
0:29:06 > 0:29:10'Upstairs to the second floor now.
0:29:10 > 0:29:15'Here the master bedroom has been totally refurbished and has a really homely feel.
0:29:15 > 0:29:20'With clever use of space which hasn't infringed on the size of the room,
0:29:20 > 0:29:23'Hannah and Nigel have added a few useful extra features.'
0:29:23 > 0:29:25This is my master bedroom.
0:29:25 > 0:29:30I'm really pleased with this room cos I managed to fit in an en suite bathroom.
0:29:30 > 0:29:34It's really compact but it does everything that I need it to, so that's really good.
0:29:34 > 0:29:39I also managed to fit in a little walk-in wardrobe, which is brilliant.
0:29:39 > 0:29:43And I went for a really light and airy colour in here.
0:29:43 > 0:29:47And I've got lovely sea views, so I really love my bedroom.
0:29:47 > 0:29:50'Hannah's already moved in with some of her friends.
0:29:50 > 0:29:54'The two smaller bedrooms continue the lovely design style she's brought to the house.
0:29:54 > 0:30:00'The layout of the rooms hasn't changed, just the quality and finish of each.
0:30:00 > 0:30:06'A new house, a new hairdressers, and since we last met Hannah, she's got engaged.
0:30:06 > 0:30:10'Her fiance is going to move in once he's finished university.
0:30:10 > 0:30:13'And it's all thanks to Dad.'
0:30:13 > 0:30:17The general condition of the property was pretty bad, really.
0:30:17 > 0:30:21Everything had to be replaced. The only bonus was that the roof was sound.
0:30:21 > 0:30:24Everything below the roof wasn't.
0:30:24 > 0:30:30'At the back, work is continuing to convert the outbuildings into a garage and store.
0:30:32 > 0:30:38'Inside, the hairdressers isn't quite ready for Hannah to do her first cut and blow-dry.
0:30:41 > 0:30:46'She's hoping to open soon and certainly has a clear vision for how she wants it to be.'
0:30:46 > 0:30:49So this will be my staff room.
0:30:49 > 0:30:54It's quite a nice, big room considering the amount of space we've got.
0:30:54 > 0:30:59In here I'll have two wash basins. It's a bit crowded at the moment.
0:30:59 > 0:31:05In here will be my little toilet, so that's nice, to have it indoors rather than outdoors.
0:31:05 > 0:31:10And then through here, this will be my main salon area.
0:31:10 > 0:31:14And I'll have my mirrors on this partition wall just over here.
0:31:14 > 0:31:20A nice waiting area over here with a coffee machine. And then my reception desk over here.
0:31:20 > 0:31:24'Hannah plans to give the hairdressers an opulent, pampered feel,
0:31:24 > 0:31:27'a touch of luxury with chandeliers.
0:31:27 > 0:31:32'It seems as though it's been a real team effort between father and daughter.'
0:31:32 > 0:31:37Hannah had a big input. She chose the furnishings and the colour scheme.
0:31:37 > 0:31:40And I just did the work.
0:31:40 > 0:31:44He's been working non-stop. He works six days a week
0:31:44 > 0:31:50and he's here at 7:30 in the mornings and he does work really hard to get everything finished.
0:31:50 > 0:31:54'But has the hard work impacted on the budget?
0:31:54 > 0:32:00'Did they manage to stick to the £30,000 to £35,000 they'd originally set aside for the renovation?'
0:32:01 > 0:32:03Budget ended up, it's going to be around about £54,000.
0:32:03 > 0:32:08It is an outcome I'm pleased with. Hannah has a home and a business
0:32:08 > 0:32:12and financially I think it was a very good move.
0:32:12 > 0:32:17'The project has had a really beneficial effect on their relationship.'
0:32:17 > 0:32:22Me and my dad have always been quite close but I think the project has brought us closer.
0:32:22 > 0:32:26We've just spent so much time together. So it's been really nice.
0:32:26 > 0:32:30'Time to find out what two local property experts think
0:32:30 > 0:32:34'of Hannah's new home and business venture.'
0:32:34 > 0:32:37I think the commercial space is lovely. They've brightened it up,
0:32:37 > 0:32:43it's light, it will work really well as a hairdressers.
0:32:43 > 0:32:45The living space is fantastic.
0:32:45 > 0:32:48A beautiful living room with sea views,
0:32:48 > 0:32:53three very ample sized bedrooms, a great bathroom and an en suite off the master bedroom.
0:32:53 > 0:32:55It all works extremely well.
0:32:55 > 0:32:59The living space they've created is light, bright, airy.
0:32:59 > 0:33:03They've kept the character of the property but they've brought it into this era.
0:33:03 > 0:33:09The quality of fixtures and fittings and the decoration is to an absolutely superb standard.
0:33:09 > 0:33:13'Remember, Nigel paid £81,000 at auction
0:33:13 > 0:33:19'and the outlay on it was £54,000, making a total of £135,000.
0:33:19 > 0:33:21'So what's it now worth?'
0:33:21 > 0:33:25As a commercial and residential property combined,
0:33:25 > 0:33:29I would put the value between £200,000 and £220,000.
0:33:29 > 0:33:31If we were to put the whole property on the market for sale,
0:33:31 > 0:33:37we would achieve between £200,000 and £225,000 for it in the current market.
0:33:37 > 0:33:43'That valuation for this property with its sea views of between £200,000 and £225,000
0:33:43 > 0:33:49'could mean a gross profit of between about £65,000 and £90,000.'
0:33:49 > 0:33:53- Yeah, that's about what we reckoned, wasn't it?- I thought it would be worth about 225.
0:33:53 > 0:33:56But, yes, pleased with that valuation.
0:33:56 > 0:34:00'Might they be tempted to cash in and enjoy the profits?'
0:34:00 > 0:34:03- BOTH: No.- Not at all.
0:34:03 > 0:34:08No. Things have changed, so it's a home for Hannah and a business and a start for her,
0:34:08 > 0:34:11so that's what we're going to do with it.
0:34:12 > 0:34:16I'm really positive about it. I've got a house and a business
0:34:16 > 0:34:19and everything's coming together, so it's really good.
0:34:19 > 0:34:23I couldn't be more grateful to him, I really couldn't.
0:34:23 > 0:34:26I'm really, really thankful that I've got the dad I do.
0:34:29 > 0:34:35'Yeovil is a thriving market town in Somerset.
0:34:35 > 0:34:39'A popular centre for shopping in the area, it's well connected by road and rail.
0:34:39 > 0:34:46'The combination of country charm and modern outlook make it somewhere worth casting an eye over.'
0:34:46 > 0:34:50So what am I here to see? Well, for a start, it's a house that's down this lane,
0:34:50 > 0:34:54which at first glance doesn't look like it's terribly well maintained.
0:34:54 > 0:34:56The property itself looks pretty spectacular.
0:34:56 > 0:34:59Pretty in blue, it's a two-bedroom cottage,
0:34:59 > 0:35:03had a guide price of £70,000 to £90,000. Let's take a look inside.
0:35:03 > 0:35:06# In this pretty blue world
0:35:06 > 0:35:13'From outside, this attractive 19th century cottage is almost too good to be true.'
0:35:13 > 0:35:18Doesn't look too bad to start off with. Front room there. Seems reasonably tidy.
0:35:18 > 0:35:23Obviously hasn't been lived in for a while. Needs a bit of love an attention for sure.
0:35:23 > 0:35:28The rear room here. I'm wondering if you could maybe do some kind of knocking down of that wall
0:35:28 > 0:35:32to create a big open-plan space. That would make a big difference.
0:35:32 > 0:35:37Through to the rear of the property. You've got this little kitchen. Tired and dated.
0:35:37 > 0:35:40Could definitely do with a bit of sorting out.
0:35:40 > 0:35:43Apart from that, it's actually quite good.
0:35:43 > 0:35:46Er, yeah, for a little cottage, it's a good start.
0:35:50 > 0:35:53# In this pretty blue world
0:35:55 > 0:35:58'The property forms part of a little Victorian terrace
0:35:58 > 0:36:02'so it's not surprising the rooms are rather small.
0:36:02 > 0:36:08'The ground floor is well laid out and the separate kitchen and living space mean it doesn't feel cramped.
0:36:08 > 0:36:12'The ceiling here definitely needs work to stop the rot
0:36:12 > 0:36:15'but so far I think the property has bags of potential.
0:36:15 > 0:36:18'Onwards and upwards.'
0:36:18 > 0:36:24Upstairs and a feeling that the place just needs a bit of love and attention is definitely continued.
0:36:24 > 0:36:28But that is superb news. You've got a bathroom up here and a loo.
0:36:28 > 0:36:32I'm not going to go in there because I understand the floorboards are a bit dodgy
0:36:32 > 0:36:35but to have that up here is great news
0:36:35 > 0:36:40and you wouldn't necessarily expect it from this railway worker's cottage.
0:36:40 > 0:36:44Second bedroom, good size, big windows. I really like this little cottage.
0:36:46 > 0:36:52'There's plenty of character here but there's also elderly wiring and signs of neglect.
0:36:52 > 0:36:57'However, it's a lovely canvas just waiting for a splash of inspiration.
0:36:57 > 0:37:01'But outside, there's one detail that might deter some purchasers.
0:37:01 > 0:37:06'The cottage is beside a mobile home park for retired people.
0:37:06 > 0:37:12'So there won't be the sweeping views of countryside you might have hoped to see out the windows.
0:37:12 > 0:37:15'But hopefully it is quiet.
0:37:19 > 0:37:24'Hopefully that should not be too much of a drawback when what you do have here
0:37:24 > 0:37:31'is a quaint little cottage which had an enticing guide price of between £70,000 and £90,000.
0:37:31 > 0:37:36'We asked a local property expert to tell us what he thought of it.'
0:37:37 > 0:37:41First impressions of the property are that it's a nice Victorian
0:37:41 > 0:37:45end-of-terrace cottage. It does need a fair amount doing to it.
0:37:45 > 0:37:49It would benefit from a new kitchen and bathroom. There are pluses.
0:37:49 > 0:37:54It's had double glazing installed. It's had a heating system installed fairly recently.
0:37:54 > 0:38:00So there's a reasonable amount to do but some of the major items were taken care of by the last owner.
0:38:00 > 0:38:05'One thing that still needs to be taken care of is the lane leading up to the house.
0:38:05 > 0:38:10'It's unadopted, meaning the local council isn't responsible for repairs.
0:38:10 > 0:38:12'But it's unclear who is.'
0:38:12 > 0:38:16The issue with the access is probably a little bit more relevant
0:38:16 > 0:38:20and I can imagine quite a number of future buyers being put off
0:38:20 > 0:38:23by the fact that there is a question mark over the access track.
0:38:23 > 0:38:29'But if that puzzle doesn't discourage the buyer and they manage to take care of all the renovations,
0:38:29 > 0:38:32'what might this cottage be worth?'
0:38:32 > 0:38:37It's certainly got the potential to reach £125,000, the stamp duty threshold.
0:38:37 > 0:38:41'What rental income could the property generate?'
0:38:43 > 0:38:47I'd probably put the rental value at around about £600 per calendar month.
0:38:47 > 0:38:51Well, it's certainly a lovely little cottage in a great part of the world
0:38:51 > 0:38:56but its location down this lane and surrounded as it is could put some people off.
0:38:56 > 0:38:59So let's see what happened when it went to the auction.
0:39:03 > 0:39:05Who'll start me at 70?
0:39:05 > 0:39:1070 I've got. At 70,000. If you're happy for the lady to have that at 70, keep your hands in your pockets.
0:39:10 > 0:39:12Cos 70 it is. 70 I've got.
0:39:12 > 0:39:15At 70. At 70. Oh, 72.
0:39:15 > 0:39:18You saw it. 74.
0:39:18 > 0:39:2176. 78. And 80.
0:39:21 > 0:39:2481 if it'll help.
0:39:24 > 0:39:2681. 82.
0:39:26 > 0:39:29Looking back to the lady. 83 or not?
0:39:29 > 0:39:3283. At 83. Half?
0:39:32 > 0:39:3683 you're in, madam. 83. At 83 for the first time.
0:39:36 > 0:39:38Perfectly pleasant house.
0:39:38 > 0:39:42At 83 second time. 83, sure and done?
0:39:42 > 0:39:44Aisle seat's got it. Wave or don't.
0:39:44 > 0:39:49- At 83 and done at 83. - HAMMER BANGS - Madam, yours. Well done.
0:39:49 > 0:39:55'The tenacious bidder who snapped up the property for £83,000 was Lisa.
0:39:55 > 0:39:58'She and her husband Keith are cabinet makers.
0:39:58 > 0:40:03'So will they see the potential waiting to be carved out in this cottage?
0:40:03 > 0:40:06'I hope so, seeing as they live right next door.'
0:40:06 > 0:40:09# Oh, yes
0:40:09 > 0:40:13# The house next door is a warm home
0:40:13 > 0:40:15# I don't see how...
0:40:15 > 0:40:20- Lisa, Keith, congratulations. - BOTH: Thank you. - You got yourselves a little cottage.
0:40:20 > 0:40:22- Yep.- Why did you want to buy it?
0:40:22 > 0:40:25We wanted an investment for the future.
0:40:25 > 0:40:30- We're self-employed, haven't got a pension fund, so this is it. - And it's next door.
0:40:30 > 0:40:33In that respect, it's nice, when we want to do the work, haven't got far to go.
0:40:33 > 0:40:36And the idea is then to rent it out?
0:40:36 > 0:40:44Ten-year plan. At the end of the ten years, sell this, my mother lives in the park home just up the lane,
0:40:44 > 0:40:48sell hers and buy somewhere in the country with an annex or a garage
0:40:48 > 0:40:52- for Nanny to live in.- A garage?
0:40:52 > 0:40:54Well, an annex.
0:40:54 > 0:40:58'I think they call it a granny flat, Keith.
0:40:58 > 0:41:03'As the couple already live next door, the view of the retirement park came as no surprise.
0:41:03 > 0:41:06'But as they bought this cottage as a rental investment,
0:41:06 > 0:41:10'are they worried the location might put off potential tenants?'
0:41:12 > 0:41:16No. It keeps it quiet. To have a park home, I think they've got to be over 55,
0:41:16 > 0:41:22- so there's not any wild parties. - I know a few wild 55-year-olds!
0:41:22 > 0:41:25# My grandma gave a party last Saturday night
0:41:27 > 0:41:30'No noisy neighbours then, hopefully.
0:41:30 > 0:41:35'But inside, how are Keith and Lisa planning to put their skills to use?'
0:41:35 > 0:41:38The kitchen is the first thing, I think.
0:41:38 > 0:41:43Well, one of the first things we can actually start working on at the workshop,
0:41:43 > 0:41:45get the units made, ready to come in.
0:41:45 > 0:41:48Knock through from the dining room into the sitting room,
0:41:48 > 0:41:51put a joist in.
0:41:51 > 0:41:54New bathroom. It's a bit of a state up there.
0:41:54 > 0:42:02There again we'll do built-in furniture. There's a boiler which can become an airing cupboard,
0:42:02 > 0:42:06it's got room for it. Built-in sink unit with storage.
0:42:06 > 0:42:09'Lisa and Keith are doing most of the work themselves.
0:42:09 > 0:42:12'They aim to let the cottage out within six months.
0:42:12 > 0:42:19'They won't cut any corners and are hoping their budget of £15,500 will stretch far enough.
0:42:19 > 0:42:25'Judging by the work they've done to their own home, their craftsmanship is sure to be top-notch.'
0:42:25 > 0:42:29You've obviously got very high standards, but this is a rental property
0:42:29 > 0:42:33so how are you going to keep your budget in check and not go overboard?
0:42:33 > 0:42:36The main thing is, I would rather put in good quality,
0:42:36 > 0:42:40but when we do come to sell it, eventually,
0:42:40 > 0:42:42it's still going to be good quality stuff in here.
0:42:42 > 0:42:48So I think that's more cost effective than to keep putting cheap stuff in
0:42:48 > 0:42:50every time you change who's renting it.
0:42:50 > 0:42:56- Fantastic. Congratulations and good luck with it.- Cheers.- Thank you. - I think we're going to need it.
0:42:57 > 0:43:02Well, Lisa and Keith certainly couldn't wish for a better rental property
0:43:02 > 0:43:06in terms of the commute to work and I can't wait to see what they do to the place.
0:43:06 > 0:43:12All those bespoke fittings! It could well be the best-fitted rental property in Yeovil!
0:43:12 > 0:43:14Find out how they get on later in the show.
0:43:17 > 0:43:19So have our developers come out on top?
0:43:19 > 0:43:23- Or have they lost the renovation battle?- Let's find out.
0:43:23 > 0:43:28'Time to return to the old coalmining village of Elvington in Kent.
0:43:28 > 0:43:34'It was here that Raj bought this former working men's club for £151,000.
0:43:34 > 0:43:40'He used to run his own IT business. To buy this, he was given financial help by his father, Sean,
0:43:40 > 0:43:43'who's been a successful property developer for 40 years.
0:43:43 > 0:43:49'This is Raj's first bit project and he's certainly set himself a challenge.'
0:43:49 > 0:43:52Where do you think the potential lies with this?
0:43:52 > 0:43:58We've been talking to the locals here and the council and we believe there is scope here
0:43:58 > 0:44:03to demolish this and build a few small properties on here.
0:44:03 > 0:44:07'Raj hoped to build ten houses on the site.
0:44:07 > 0:44:10'But that was all going to depend on the planning permission.
0:44:11 > 0:44:17'It's now eight and a half months later when we meet up with Raj and Sean.
0:44:17 > 0:44:22'There's no sign of any demolition work and the building is looking in an even worse state.
0:44:24 > 0:44:27'You can't even have a game of snooker any more.
0:44:27 > 0:44:32'But it sounds like Raj could still be on cue to pocket a profit here.'
0:44:32 > 0:44:35I managed to obtain planning permission
0:44:35 > 0:44:38for eight properties on this piece of land
0:44:38 > 0:44:41and to demolish the old property.
0:44:41 > 0:44:46'There'll be eight properties, two three-bedroom semis and six terraced houses.
0:44:46 > 0:44:51'Four of those will be three-bedroom and a couple two-bedroom.'
0:44:51 > 0:44:55Where we're standing at the moment is where the two-bedroom properties are going to be.
0:44:55 > 0:45:01To my left, there will be a block of three, and to my right, there will be another block of three.
0:45:01 > 0:45:05Each property is going to have two car parking spaces. They've got quite big gardens.
0:45:05 > 0:45:10And eight properties on this size plot, I think it's going to be quite nice.
0:45:10 > 0:45:14'So the derelict former working men's club is to be demolished.
0:45:14 > 0:45:17'But how long before work begins?'
0:45:17 > 0:45:21I think we're going to be building eight weeks from now.
0:45:21 > 0:45:25We're going to be building two properties first, which are the two on the corner.
0:45:25 > 0:45:30Once they are watertight, then we can demolish this property,
0:45:30 > 0:45:34the reason being, we need a secure area.
0:45:34 > 0:45:37'So the club's got a stay of execution of a few weeks.
0:45:37 > 0:45:40'But even then, some of it will live on.'
0:45:40 > 0:45:44Everything that's been demolished from here is going to get reused.
0:45:44 > 0:45:50The bricks we've already sold. Someone is building a house that needs these bricks and they're gone.
0:45:52 > 0:45:57'That will bring in some money and help the environment. But what about the big financial picture?
0:45:57 > 0:45:59'How much has Raj spent so far?'
0:46:01 > 0:46:07I've spent, actually gone out of my pocket for this property at the moment, £162,000,
0:46:07 > 0:46:09including the purchase price.
0:46:09 > 0:46:15We've committed to now approximately £10,000 more,
0:46:15 > 0:46:19which is the building regs, all the other reporting.
0:46:19 > 0:46:21Then it's just whatever the building costs are.
0:46:21 > 0:46:26'How much does he estimate each house will cost to build?'
0:46:26 > 0:46:28My target is £50,000.
0:46:28 > 0:46:34That was supposed to include all the fees and everything
0:46:34 > 0:46:36but I think that's going to be over the top of that now.
0:46:36 > 0:46:43'Though planning consent has been granted, there are still a few hoops for Raj to jump though.
0:46:43 > 0:46:48'And of course there was the issue of a possible disused coal mine under the site.'
0:46:48 > 0:46:52# Working in a coal mine, going down, down, down
0:46:52 > 0:46:55There's no conditions on anything to do with mining.
0:46:55 > 0:46:59Had there been any doubt, there would've been planning conditions.
0:46:59 > 0:47:02As there is none, that means there's no doubt.
0:47:03 > 0:47:09'Raj has taken on an ambitious build for his first development project. So is he confident?'
0:47:11 > 0:47:13Eight properties, yeah, I can cope with that.
0:47:13 > 0:47:15Dad is my rock.
0:47:15 > 0:47:20If I've got a problem, he's the one I fall back on. He's been doing this for 40 years,
0:47:20 > 0:47:24knows practically everything there is to know about building.
0:47:24 > 0:47:27Time to find out what two local property experts think
0:47:27 > 0:47:30of the planned new development here
0:47:30 > 0:47:33at this former working men's club.
0:47:33 > 0:47:37I'd say, for the size of the plot, the planning that's been granted
0:47:37 > 0:47:40for eight houses seems to be about the right number.
0:47:40 > 0:47:43I think nine would've squeezed one too many in.
0:47:43 > 0:47:48The current planning approval is for two terraces of three
0:47:48 > 0:47:50and a pair of semi-detaches.
0:47:50 > 0:47:52That fits in well on this triangular plot
0:47:52 > 0:47:55as it has two road frontages to highways
0:47:55 > 0:48:01and the majority of property around is terraced and semi-detached.
0:48:01 > 0:48:09'So far, Raj has committed to spend £172,000 buying the property and on the planning application.
0:48:09 > 0:48:14'He also estimates that building costs for the eight houses would be £400,000.
0:48:14 > 0:48:20'So his projected total outlay is looking like it'll be around £572,000.
0:48:20 > 0:48:23'How much could it all be worth?'
0:48:23 > 0:48:31The smaller two-bedroom houses, the mid-terrace one is probably going to be £110,000 to £115,000.
0:48:31 > 0:48:36And then the spectrum will run through to the largest three-bedroom semi-detached with a garage
0:48:36 > 0:48:38at probably £150,000.
0:48:38 > 0:48:42With the garages and off-road parking, I would say the two-bedroom houses
0:48:42 > 0:48:46will probably sell for about £120,000 to £130,000
0:48:46 > 0:48:49and the three-bedrooms for about £150,000.
0:48:50 > 0:48:55'So, if Raj was able to sell the two semis for £150,000
0:48:55 > 0:49:00'and the six terraced ones for between £110,000 and £130,000,
0:49:00 > 0:49:04'that would generate somewhere around the £1 million mark.
0:49:04 > 0:49:08'That's almost double his projected investment of £572,000.
0:49:08 > 0:49:11'Not too shabby at all.'
0:49:13 > 0:49:17By the time these properties are on the market, they're going to be a little bit more.
0:49:17 > 0:49:22But even at those figures, I'm happy.
0:49:22 > 0:49:26'With the potential of doubling your dosh, Raj, I'm not surprised.
0:49:26 > 0:49:30'So when will the houses be ready to sell?'
0:49:30 > 0:49:36I think, realistically, five to six months will see two completed properties
0:49:36 > 0:49:41and then another three months after that, you'll see the others completed, as well.
0:49:41 > 0:49:44I'm looking forward to putting that first shovel in the ground.
0:49:44 > 0:49:50I'm really looking forward to it. I can't wait to put that in there. That will be a big day for me.
0:49:55 > 0:50:00'Time to head back to Yeovil in Somerset where earlier in the programme,
0:50:00 > 0:50:06'Lisa and her husband Keith bought this two-bed cottage right next door to their own home.
0:50:06 > 0:50:11# The house next door is a warm home
0:50:11 > 0:50:17'They paid £83,000 for it and planned to renovate it and then rent it out.
0:50:17 > 0:50:23'The couple are professional cabinet makers and were going to do most of the work themselves.'
0:50:23 > 0:50:28- Why did you want to buy it?- We want an investment for the future.
0:50:28 > 0:50:32We're self-employed, haven't got a pension fund, so this is it.
0:50:32 > 0:50:40Ten-year plan. At the end of the ten years, sell this, my mother lives in a park home just up the lane,
0:50:40 > 0:50:43sell hers and buy somewhere in the country with an annex.
0:50:43 > 0:50:48'Eight months later, we met up with Keith and Lisa.
0:50:48 > 0:50:51'At least they didn't have too far to travel.
0:50:53 > 0:50:56'They've built new cupboards in the hallway.
0:50:57 > 0:51:02'The wall which separated the two reception rooms has been removed,
0:51:02 > 0:51:06'creating one large living room with solid-wood flooring.
0:51:10 > 0:51:13'There's more carpentry work around the chimney breast.
0:51:18 > 0:51:22'And in the front room, their seven-year-old son Ben
0:51:22 > 0:51:25'is adding the finishing touches.
0:51:29 > 0:51:32'Creating one large living room has been a great move
0:51:32 > 0:51:38'and adding this French door really draws the eye out into the garden.'
0:51:38 > 0:51:42It's something we wanted to do on our own property which we haven't got round to.
0:51:42 > 0:51:45In a way, this is an experiment, and we think it's worked well
0:51:45 > 0:51:51by opening up the dining room up into the garden, which we think will be a real boon in the summer.
0:51:51 > 0:51:53I think it'll be really nice.
0:51:53 > 0:51:58'The garden's not huge but Keith's had a tree cut down, levelled the plot
0:51:58 > 0:52:01'and it just needs finishing off.
0:52:01 > 0:52:05'Beyond the living room, the kitchen's been totally refitted.
0:52:05 > 0:52:09'And, of course, Lisa and Keith have crafted the kitchen units.
0:52:09 > 0:52:15The kitchen was great for us because it's what we do every day.
0:52:15 > 0:52:19We made the drawers out of solid oak with dovetail joints
0:52:19 > 0:52:22and self-close runners.
0:52:22 > 0:52:26All the kitchen is solid timber with a painted finish.
0:52:26 > 0:52:29We didn't have much scope for putting a lot in
0:52:29 > 0:52:34but we feel that we've maximised the space with a lot of storage.
0:52:34 > 0:52:39'Upstairs, the two bedrooms are decorated ready for carpeting
0:52:39 > 0:52:42'and both have handmade wardrobes.
0:52:46 > 0:52:50'The bathroom has been completely stripped out and refitted.
0:52:52 > 0:52:58'At the top of the house, they've converted the attic into extra accommodation.
0:52:58 > 0:53:02'It didn't need planning permission as it fell within their permitted development.'
0:53:02 > 0:53:06This is the attic room which didn't exist at all when we bought the property.
0:53:06 > 0:53:12We've had the staircase put in and a nice storage unit which could be used for books.
0:53:12 > 0:53:16The loft storage space. The beams we've left exposed.
0:53:16 > 0:53:22We thought the timbers looks quite nice. It'll make a nice, bright and airy study or play room
0:53:22 > 0:53:24or home office.
0:53:24 > 0:53:28'They had hoped to get the house finished and let out within six months
0:53:28 > 0:53:34'as that's the length of time this property was allowed to lie vacant without paying council tax.
0:53:34 > 0:53:39'In the end, it's taken eight months. But did they manage to stick to their budget?'
0:53:39 > 0:53:44Our final budget was supposedly £15,000
0:53:44 > 0:53:50but we've stuck to about £16,000 for everything,
0:53:50 > 0:53:57including the seller's fees, extra council tax and water that we've had to pay. I'm pretty happy with that.
0:53:57 > 0:54:03'Living next door was a bonus. It meant they could pop in and do the work whenever they wanted.
0:54:03 > 0:54:08'Now the cottage is almost finished, have they thought about moving in themselves?'
0:54:09 > 0:54:11- No.- No.- No.
0:54:11 > 0:54:18- As much as it would be nice, no, we can't afford to.- Not financially. We need to rent it out.
0:54:18 > 0:54:22We've already got people who want to move in. They're our neighbour's family.
0:54:22 > 0:54:25So that's been ideal for us.
0:54:27 > 0:54:32'Time to find out what two local estate agents think of the cottage
0:54:32 > 0:54:35'that Keith and Lisa have so lovingly refurbished.'
0:54:35 > 0:54:38The kitchen and bathroom are both very good.
0:54:38 > 0:54:42They've got that wow factor that first-time buyers particularly
0:54:42 > 0:54:45will be looking for and sold on.
0:54:45 > 0:54:49First impressions are excellent. It's a massive change from last time.
0:54:49 > 0:54:52The oak floors, the fireplaces back in place.
0:54:52 > 0:54:55Pretty much every room has got built-in storage
0:54:55 > 0:55:00that's been done to a fantastic standard, as you'd expect from cabinet makers.
0:55:00 > 0:55:03I think the attic room has actually enhanced it quite a bit.
0:55:03 > 0:55:06They don't always work, but I think the access to it is not bad
0:55:06 > 0:55:10and it's very useful additional space to a property of this size.
0:55:10 > 0:55:13'Have they managed to add value here?
0:55:13 > 0:55:18'Remember, they paid £83,000 for it and have spent another £16,000,
0:55:18 > 0:55:23'so £99,000 in total. What's it now worth?'
0:55:24 > 0:55:30I would expect it to reach a figure in the region of £120,000 to £125,000.
0:55:30 > 0:55:36I would say, after the refurbishment, the resale value is likely to be in the region of £125,000.
0:55:36 > 0:55:43'That valuation range could produce a gross profit of £21,000 to £26,000.
0:55:43 > 0:55:45'Is that the sort of figure they'd expected?'
0:55:45 > 0:55:49- Happy with that. - Yeah.- Can't complain.
0:55:49 > 0:55:53'Of course, they plan to rent it out and already have a tenant lined up.
0:55:53 > 0:55:55'So what could that earn?'
0:55:55 > 0:56:00Rental valuation, I would put it in the region of £625 per calendar month.
0:56:00 > 0:56:03I think the property is an excellent proposition for rental
0:56:03 > 0:56:08and I would expect it to achieve rental in the region of £550 per calendar month.
0:56:08 > 0:56:12They've already agreed to pay the £625 per calendar month,
0:56:12 > 0:56:16which is brilliant, so it's nice to have people that you know moving in.
0:56:18 > 0:56:23'They've certainly transformed the property and have a tenant who they know about to move in.
0:56:23 > 0:56:27'You may remember their long-term plan was to sell the two properties
0:56:27 > 0:56:33'and then move to a large house with Keith's mum. But they must feel very proud of this refurbishment.'
0:56:33 > 0:56:37We do, yeah. It's really nice to know that we've done it.
0:56:37 > 0:56:40- But I don't think we'll ever do it again.- No.- Once is enough.
0:56:40 > 0:56:45- Maybe if it was for ourselves, a big property that we...- The next thing.
0:56:45 > 0:56:49Then maybe, yeah. But no. Never again.
0:56:51 > 0:56:55- Not enough for you? Worry not.- We'll have plenty more stories for you
0:56:55 > 0:56:59- next time on Homes Under The Hammer. - See you then.- Goodbye.- Goodbye.
0:57:01 > 0:57:05Subtitles by Red Bee Media Ltd
0:57:05 > 0:57:09E-mail subtitling@bbc.co.uk