Episode 33 Homes Under the Hammer


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Episode 33

Martin Roberts and Lucy Alexander visit a two-bedroom cottage in Somerset, a club premises and manager's flat in Dover and a three-storey period property in Norfolk.


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Despite the ups and downs of the property market,

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now is still a good time to buy at the auction.

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If you're prepared to take the plunge, auctions can be a great place to start.

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They're exciting, they're frantic, but you can get yourself a bargain buying your home under the hammer.

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Some properties are incredibly popular at the auction and others just go unsold.

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And the auction room can sometimes be a difficult place to conquer.

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So what won the hearts of the buyers on today's show?

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'In Norfolk, the space above this former hairdressers has blown me away.'

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I did not expect to find such a fantastic flat.

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'The regulars have left this Kent working men's club, but memories remain.'

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You can so imagine this place in its heyday, everyone up dancing.

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'And in Yeovil, this picture-perfect cottage has some surprising accommodation.'

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Yeah, for a little cottage, it's a good start.

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'All of these properties went to auction.

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-'We'll find out who bought them and what they paid when they went under the hammer.'

-All done?

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I'm on the beautiful North Norfolk coastline in the village of East Runton.

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Formerly a fishing village, it's now a popular holiday destination.

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And you know what? You can see why.

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'As well as the beach and holiday parks, the centre of the village sits around this picturesque pond.

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'An idyllic spot indeed.'

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The property I'm here to see is right in the centre of the village.

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It's a former hairdressers shop but it's actually one of those mixed use developments that I really like.

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Basically, a commercial unit downstairs and residential upstairs.

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Had a guide price of 75,000 quid. Let's take a look inside.

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# The first cut is the deepest

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'With its position on the high street, it already ticks box number one.

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'When it comes to running a local business, if you want to attract passing trade,

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'you need to be in the right spot.'

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You certainly can't knock the location. So, what could you do with it?

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At the moment, it has got classification for its existing use,

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which was a hairdressers. So what could you use it for if you didn't want to set up another hairdressers?

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Well, something like an accountants, maybe an estate agents, a solicitors.

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If you wanted to do something else with it, and it's not a bad size space

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for all sorts of different things, if you wanted to set up a sandwich bar

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or fast food or something like that, you'd have to get change of use.

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But in terms of fitness for purpose, I like it. It's got high ceilings, it's light and airy.

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Big room at the front, smaller room at the back. Little kitchenette there.

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Bit of playing around, it could be a really nice unit.

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And there's more. There's an upstairs.

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'Of course, the other option would be to change the space back to residential use.

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'But that would require planning permission. I would be tempted to keep it as a business

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'because even if you weren't going to take it on yourself,

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'you could always earn some extra cash by renting it out.'

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I have to say that coming up here is an absolutely revelation

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because I did not expect to find such a fantastic flat. In fact, potentially two flats.

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On this first floor, a kitchen area there,

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loo there and then through into a really large living room area

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which I think you could turn into a kind of bedroom/living area.

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So really nice. OK, it needs a bit of sorting out

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but it's got a lovely feel to it, I can't quite describe it,

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but it's lovely, basically. And there's more upstairs.

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'The bathroom and kitchen certainly need a lot of work.

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'And the original features would really be worth renovating

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'to restore the character of the place.'

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Lots of light pouring in from the roof light there.

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A really nice feel up here, as well. What have we got?

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Two bedrooms, one there with its own little sink,

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another one there and then through to another really good size living area

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which has got a sink, so this could definitely be another kitchen/living room.

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As I said, I think you'd have maybe a flat downstairs, a separate flat up here.

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That is a great way to turn this into a money-making machine. But there's something I've forgotten.

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Look out the window! You've got the sea just there! This is a really popular holiday spot

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so why not think about converting the upstairs here into a holiday let?

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That could be really interesting. So, all in all, so many options. It's a great place!

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# If you're fond of sand dunes and salty air

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'But to bring it up to a decent standard won't be cheap.

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'The electrics are clearly out of date and I'd imagine it could do with central heating being fitted.

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'Once you start peeling back some of the wallpaper,

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'I wouldn't be at all surprised if the plaster came with it. So plenty to do. But it would be worth it.'

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At the rear of the property, a little courtyard area

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and a real bonus, these little outbuildings.

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A loo in that one, storage space in the others. I don't know quite what you'd do with them.

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I would just clean them up and use them to store things. Maybe if you had holidaymakers,

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this is where they could keep their beach balls and paraphernalia.

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One exciting thing is, though, you do have this which is an access onto a car park at the back.

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I don't know what the legalities are of whether you've got rights of way.

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That's something for your solicitor to check out. If you could get through there,

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it opens up a host of possibilities. But coming back to that guide price,

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this place has a lot to offer.

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'Yes, just £75,000. Great potential with a sea view. What more could you ask for?'

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# If you're fond of sand dunes and salty air

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'To find out a bit more about it and the opportunities here,

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'we invited a local estate agent round to have a look.'

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It's a big Victorian house, and as quite often is the case

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with big Victorian houses, they do take a lot of upkeep

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and if they're let slip, they deteriorate really quickly.

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This property is in need of a full refurbishment.

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'What's her advice here? Keep it as a shop and convert upstairs into more accommodation?'

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The residential parts of the property I would enhance as a three-bedroom maisonette,

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keeping the sitting room, kitchen and bathroom on the first floor

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and three good bedrooms on the second floor. It has lovely sea views

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and it would be perfect for somebody to live and occupy the building or rent out.

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'So if you were an investor looking to do up and sell on,

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'how much could it be worth?'

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The resale value as a whole, once renovated with commercial ground floor and three-bedroom maisonette

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on the first and second floor, I would estimate to be in the region of £200,000 to £220,000.

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'What's the potential here for a buy-to-let investor?'

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Once renovated, the residential parts of the property would be £600 to £650 per calendar month.

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The commercial property rental value would be in the region of £5,000 to £6,000 a year.

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That would be dependant on the sort of business that's in here.

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However, my advice and the best way to use these properties

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is to live and occupy your own business so that you're developing the property as one.

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That's the most feasible way to use these big Victorian houses.

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This property has two things that I really like - flexibility and potential.

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And for that £75,000 guide price, it's got to be a great one to go for.

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Let's see who fancied it when it went under the hammer.

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We have lot number 39.

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Delightful little property. Lots of accommodation, great views.

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70,000 to start me. That's £70,000.

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65 if you wish. 65 over there. Thank you. 65 I'm bid. At 65.

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At £65,000. 67 and a half.

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70. That's 70. 72 and a half.

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75 for you, sir. 75.

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At 75. I'll take one now.

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76. At 76.

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77 here at the front. At 77. 78 for you, sir?

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78,000 I'm bid. OK, I'll take 500.

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78 and a half. At 78 and a half. 79 at the back.

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At £79,000.

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£80,000. Another 500, sir?

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80,500. 81,000.

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I'll take 250 if you want to try another one.

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£81,000, shaking your head. I'm going to sell it.

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At £81,000. Bidding's on my left at 81,000 for the first time.

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Second time. Third and final time, are we all done at 81,000?

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Yours, sir.

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'That final successful bid of £81,000 came from Nigel.

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'He's a self-employed property investor and developer who lives about 12 miles away.

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'I met up with him and his daughter Hannah to find out their plans for the place.'

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-Nigel, Hannah, great to meet you both. Congratulations.

-Thank you.

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-Tell me why you wanted to buy this place.

-Well, we bought it as an investment to begin with.

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We were looking for a good deal at the auction, which I think we got.

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And that was the reason, really, to refurbish it and sell it on for profit.

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-So what's changed?

-Well, I'm studying to be a hairdresser

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and it just so happened that the property is a hairdressers downstairs

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so it became something that would be better for me than just to sell on.

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So it's going to be my home as well as a business.

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-Oh, wow! So you only discovered this after the event?

-Kind of, yes. That's how it works in our family.

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It's a change of plan but I think it's for the right reasons.

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So what did you think? At what point did you get involved?

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I didn't know Dad was even going to the auction

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so it wasn't until he came back and I had a look at the property

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and I kind of fell in love with it a bit. It's a lot of space for the amount of money

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and it's a nice area, I really like the town.

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-So where are you at the moment?

-I'm at college at the moment.

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-I'm living with Mum and Dad.

-So this is going to be your first home.

-Yep.

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It couldn't be much better, really, could it?

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# Who cut your hair?

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# Who cut your hair?

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# Who cut your hair?

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The only downside is that your investment and quick money-making venture's gone out the window.

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Slightly, yes, but the main thing is that Hannah gets on

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and we're in a position to help her and happy to do so.

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-There's a big difference between cutting hair and running a business.

-Yeah.

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-What kind of help are you going to get in setting the business up?

-I've already got one friend

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who's been a beauty therapist and run her own business. She's going to help me and be part of my business.

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-So it's going to be a beauty therapists, as well?

-Yeah.

-Great.

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Then I've got another friend who's also doing hairdressing and the business side, as well.

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And I've got a lot of support from my family.

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'What a turn up for Hannah! As plans go, this one's changed quite considerably since the auction.'

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# Hairdresser

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'But Nigel seems to be taking it all in his stride.'

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# Hairdresser

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-Tell me about you. What's your background?

-For the past 25 years,

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I've been in building and property development.

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-So this was going to be part of a portfolio of stuff that you're working on?

-Yes, it was going to be.

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Tell me what you're going to do with the place

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to get it sorted out, habitable and operating as a business.

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Upstairs and the floor above we're going to make into three bedrooms,

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one of which will be the en suite with the view to the sea, the big bedroom.

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This will be the lounge as is

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with a bathroom and a kitchen on the first floor

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-and down below will be the shop and we're going to have a downstairs toilet, aren't we?

-Mm-hm.

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What do you need to do physically to convert upstairs and also to shop fit the hairdressers?

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Well, there is a bit of a damp problem with some of the walls,

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so they'll probably have to be hacked off and replastered.

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It'll have to be rewired, replumbed. The roof needs some attention.

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Replace the windows with double glazing.

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Keep as many period features as we can. There are some nice ones in here, the fireplaces.

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-What kind of money have you set aside to do the work?

-I think round about £30,000 to £35,000

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should put it all back together again.

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-Does that include shop-fitting the hairdressers?

-That's a little bit vague,

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but depending on what Hannah might want in there,

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-that budget could go up a bit.

-What kind of timescale for getting it sorted?

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We will be starting pretty soon.

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I guess it's going to be four or five months.

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I will be doing the majority of the renovation work myself, with Hannah, and my son. It's a family effort.

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'It's lovely to hear that the family will be pitching in to help out.

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'It's not every day that your dad hands you a business opportunity and a new home.'

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# Hairdresser

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So literally, in the space of a few weeks, you've gone from living at home and working on your studies

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-to suddenly having your own place and potentially a business. How do you feel?

-Overwhelmed, really.

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When Dad suggested it, I was a bit hesitant almost

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cos I've got to cover the mortgage and everything myself, so it's a big step,

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but it's going to be a good opportunity. How many people can say they've started a business at 20?

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Congratulations. Good luck with the new business venture, Hannah. Well done, Dad.

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-Thank you very much.

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

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# The first cut is the deepest

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# Baby I know

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# The first cut is the deepest

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Isn't it great when things turn out like that?

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What more perfect opportunity for Hannah could this be?

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A place to live and a place to start her own business.

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Still, there is a big difference between cutting hair and cutting it in business.

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So how is she going to get on? You can find out later in the show.

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'I'm in the Kent village of Elvington, six miles northeast of Dover.

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'The village was built in the early 1900s

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'as homes for coalminers and their families working in the nearby Tilmanstone colliery.

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'The property I've come to see today contains a fully functioning bar, committee room, stage,

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'dance floor and even its own games room.'

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I know what you're thinking. You're imagining a huge stately home, a country pile.

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Well, no. This is today's auction lot in all its faded glory.

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It's a former Elvington working man's club

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and this immense building had a guide of just £120,000 to £125,000.

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Let's go inside and find that billiard room.

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'This club was a much-loved focal point of the community

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'but served its last pint over nine months ago.'

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# Look what I found in my beer

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'It's a shame to see, but like a lot of workers' social clubs across the country,

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'it's fallen victim to changing times. It sits on almost half an acre of land

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'so there's a lot of property here.'

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The first thing that hits you in here is the enormity of the size of this room!

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It's massive! And it stinks of stale beer, I have to say.

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But look at it! Look! A poor old dance floor has been absolutely wrecked.

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There's bits of ceiling falling down. You can see the old dartboard over there.

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And look at this. I love this! The old tombola.

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Stick all the raffle tickets in it. There really is quite a few interesting little bits.

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A lovely big stage over there. You can so imagine this place in its heyday,

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everyone up dancing, having a good time. I'm going to have a good old look around.

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'Well, look past the mess and you'll appreciate just how much accommodation there is here.

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'Apart from this main hall, there's a separate committee room. There are also several toilet facilities

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'and a large manager's office with a separate store room that leads up to the second floor accommodation.

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'Up there are three bedrooms and a bathroom.

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'But unfortunately, time has been called on this place.'

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# Closing time

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# One last call for alcohol

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# So finish your whisky or beer

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Oh. And so finally here we are in the billiard room. You've found me.

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And it seems the perfect opportunity for me to give you some background history to this place.

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Tilmanstone Colliery Working Man's Club was founded in 1916

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and moved into this premises soon after.

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Some 30 years or so passed before women were allowed entry.

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Finally, in 1952, they were allowed to become members for the first time

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but they were not allowed to use this billiard room.

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Later, they were allowed to use the room on special occasions

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but it wasn't until 1960 that ladies were allowed to use this room whenever they wanted to.

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# Here come the girls

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# Here come the girls

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'So the working men's club became a club for working people.

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'But now its days of hard graft have ended.'

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So what can you do with this epic property?

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Well, the auction catalogue hints at the potential for conversion or redevelopment.

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Having looked around, I would personally opt for redevelopment.

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But what if you wanted to convert this place?

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Dover Council can't be sure of the property's exact classing.

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Because it's been a social club for so many years,

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their records just don't date back to inception and official classing of this time.

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One thing's for certain, though. It isn't residential and so whichever category it falls into,

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it will need permission for change of use.

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'Given the potential planning issue,

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'this seems like an investment which I suspect only a seasoned developer would want to take on.

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'But does a local estate agent think that the pint glass is half full

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'or half empty when it comes to this former social club?'

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# Look what I found in my beer

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This area is predominantly residential,

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it's a small village and it's all residential property in surround,

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so I think the planners would favour a residential redo element of this site.

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'That's good news. But how many houses could you feasibly get on the plot?'

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I think if this was a site for total redevelopment,

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it's worth looking at trying to get eight to ten houses here.

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'If the building wasn't demolished but converted into residential accommodation,

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'what are the options then?'

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This building's not easy to convert into residential.

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That would be quite difficult. But you'd get a couple of large units from it.

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'It doesn't sound as though that would be as lucrative.

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'So if you were to build several two or three-bedroom houses on the plot, how much might you make?'

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The value of resale houses here would be in the order of £140,000 to £150,000 each,

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depending on the size you're able to put onto the site.

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Convert or redevelop? That is the choice here.

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And it all comes down to one thing - planning permission.

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This will determine what's possible.

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And I know what I'd love to see in its place. A brand new row of houses.

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Let's find out who wanted this opportunity as we go to auction.

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And over the page to lot 74 which is Elvington Working Men's Club.

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Club premises and manager's flat.

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Potential for conversion or redevelopment. 120 can I say?

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120 can I say? 100 do I see?

0:21:000:21:03

100 I'm bid. And 10.

0:21:030:21:07

120. 120 I'm bid. And 5 now if you like.

0:21:070:21:10

125 in a fresh place.

0:21:100:21:12

130 just in front of you.

0:21:120:21:14

132. 1?

0:21:140:21:16

131. 132.

0:21:160:21:19

132. And 3. And 4?

0:21:190:21:22

134. 134. 135. And 6.

0:21:220:21:27

Yep, 136. And 7. And 8.

0:21:270:21:30

138. 138. And 9.

0:21:300:21:33

And 40.

0:21:330:21:35

140. 141.

0:21:350:21:36

Is that a bid? 141.

0:21:360:21:39

142. Yes? 142.

0:21:390:21:42

And 3. 143. 143.

0:21:420:21:45

Make it 145, sir, see if you can knock him out. 145. Sometimes works.

0:21:450:21:49

Or don't you want to go...? 144.

0:21:490:21:51

145 I'm bid. 146. It's against you again.

0:21:510:21:54

Coming in again? 145 and a half.

0:21:540:21:56

146.

0:21:560:21:58

146 and a half again.

0:21:580:22:00

146 and a half. 147.

0:22:000:22:03

147 and a half. 148. 148.

0:22:030:22:06

148 and a half. 148 and a half.

0:22:060:22:10

149. And a half.

0:22:100:22:12

149 and a half. And 150.

0:22:120:22:15

And a half again. A half again.

0:22:150:22:17

151.

0:22:170:22:19

151 and a half?

0:22:190:22:21

No? 151,000 then for the first time.

0:22:210:22:24

151,000 for the second time.

0:22:240:22:27

151 for the third and final time sitting down there.

0:22:270:22:30

All done? £151,000. Well done, sir. 7954.

0:22:300:22:35

'That final bid of £151,000 was made by father and son team Sean and Raj.

0:22:350:22:42

'Raj has run an IT business in the past

0:22:420:22:45

'and his dad Sean's been a property developer for many years.

0:22:450:22:48

'Raj is now looking to move into property development full time.

0:22:480:22:52

'This is the first big project he'll be involved in

0:22:520:22:56

'so it's just as well he's got such an experienced mentor.

0:22:560:22:59

'I met up with Raj to find out more about their plans.'

0:23:000:23:04

Raj, congratulations. Thank you so much for coming along today.

0:23:070:23:11

-Happy with your purchase?

-Very, very happy at the moment, yeah.

0:23:110:23:15

Where do you think the potential lies with this?

0:23:150:23:17

We've been talking to the locals here and the council

0:23:170:23:24

and we believe that there is scope here to demolish this

0:23:240:23:28

and build a few small properties on here.

0:23:280:23:30

So how do you think the locals will take to a new housing development here?

0:23:300:23:36

We've been speaking to locals and asked them what they'd like here

0:23:360:23:39

and everyone has said this is ideal for redevelopment into houses.

0:23:390:23:44

They're not happy with putting apartments here. They want houses.

0:23:440:23:48

-And have you taken it a step further and spoken to the local authorities?

-We spoke to them prior to purchase

0:23:480:23:55

to sound them out, what they think we could do here.

0:23:550:23:59

We have one obstacle and that's to prove that removing this amenity from this area

0:23:590:24:05

is not going to be detrimental to the area.

0:24:050:24:08

There is a couple of other drinking places quite close so I think we could get around the amenity problem.

0:24:080:24:14

So, Raj, let's say you do get the planning permission.

0:24:140:24:18

Will you then move on and develop this site?

0:24:180:24:20

Or is there any chance you may just sell it on?

0:24:200:24:23

The plan at the moment is that we are going to go all the way through to sale.

0:24:230:24:27

So we will be selling the individual properties.

0:24:270:24:30

But after the planning's in, we will re-evaluate and see which is going to be the best path for us.

0:24:300:24:36

'Raj hopes he'll get planning permission for ten houses here.

0:24:380:24:41

'That would give them a tremendous return on their investment.'

0:24:410:24:45

So how much do you think you will market each individual property for

0:24:450:24:49

-once you've built them on this site?

-We've talked to estate agents.

0:24:490:24:53

I think we could go for around 145 to 150 per property.

0:24:530:24:58

'If they did get between £145,000 and £150,000 per property on ten houses,

0:24:580:25:04

'that could generate up to £1.5 million,

0:25:040:25:07

'even allowing for demolition and building costs.

0:25:070:25:11

'So there could be a significant profit to be made on that initial £151,000 they paid at auction.'

0:25:110:25:17

How much involvement are you going to have once the development starts to take place?

0:25:170:25:22

We're not going to be doing any building, it'll be sub-contracted out. We're the developers.

0:25:220:25:27

The actual people doing the work will be a building company.

0:25:270:25:31

Are you a little bit worried about what may lie under here?

0:25:310:25:34

Yeah, I am a little bit worried that there might be a mine underneath here

0:25:340:25:38

but we've had the report from the mining council and wherever

0:25:380:25:42

and they say that all movement has stopped and they don't see that there is a mine underneath here.

0:25:420:25:48

-But until we actually do the surveys, we don't know.

-You're not going to know.

0:25:480:25:54

# Working in a coal mine, going down, down, down

0:25:540:25:58

'As Elvington is an old coalmining village,

0:25:580:26:00

'the prospect of encountering a disused mine is very real.

0:26:000:26:04

'That could put a serious dampener on Raj's development plans.

0:26:040:26:08

'However, he's confident this won't be a problem.'

0:26:080:26:11

Round here, it's all chalk anyway.

0:26:110:26:14

So if we hit chalk pretty quick then we're up.

0:26:140:26:17

You'll be dancing around. Whoo!

0:26:170:26:19

I'm already dancing. HE LAUGHS

0:26:190:26:22

-Are you happy with what you've bought?

-Absolutely.

-Excited?

-Absolutely.

0:26:220:26:26

'Well, Raj does have a dance floor, so why not use it while it's still there?'

0:26:270:26:32

Lots of decisions for Raj and his dad Sean.

0:26:340:26:37

Will they get that all important planning and develop?

0:26:370:26:39

Or will they secure the planning, sell the site and move onto the next one?

0:26:390:26:43

It's their first project together and although Sean has years of experience,

0:26:430:26:48

how will the father and son team work together?

0:26:480:26:50

You can find out later on in the show.

0:26:500:26:53

'Coming up in Yeovil, the work on this former railway worker's cottage seems on track.'

0:26:540:27:00

All in all, I really like this little cottage.

0:27:000:27:03

'We're back at the club in Kent. But will the drinks be on the house?'

0:27:040:27:08

We managed to obtain planning permission for eight properties on this piece of land.

0:27:080:27:14

'But first we return to Norfolk where it's been a hair-raising few months.'

0:27:150:27:20

The general condition of the property was pretty bad, really.

0:27:200:27:24

'We're back now to the Norfolk seaside town of East Runton.

0:27:260:27:30

'Earlier we saw Nigel, a self-employed property developer,

0:27:300:27:34

'pay £81,000 for this three-floor property.

0:27:340:27:37

'It comprised a former hairdressers on the ground floor

0:27:370:27:40

'plus two floors of accommodation.

0:27:400:27:43

'Nigel initially bought it as an addition to his portfolio

0:27:430:27:47

'but his daughter Hannah's circumstances meant that there was a change of plan.'

0:27:470:27:52

-So what's changed?

-I'm studying to be a hairdresser

0:27:520:27:56

and it just so happened that the property has a hairdressers downstairs

0:27:560:28:00

and so it became something that would've been better for me than just to sell on.

0:28:000:28:05

'Well, it's now eight months later.

0:28:050:28:08

'From the outside, Hannah's hairdressers has had a makeover.

0:28:080:28:13

'But it's upstairs in the living accommodation where the big transformation has taken place.

0:28:150:28:20

'In the large bay-fronted living room, the floors have been painted white

0:28:200:28:25

'and a stunning beach-house look has been created.

0:28:250:28:28

'The wiring and plumbing have been replaced throughout.

0:28:280:28:33

'All the windows have been changed.

0:28:330:28:35

'And the white flooring continues in the bathroom.

0:28:350:28:38

'A huge bath has been put in, plus a separate shower.

0:28:380:28:42

'A new kitchen has been installed

0:28:420:28:44

'with some high-spec units and appliances.'

0:28:440:28:49

In the kitchen, I wanted to choose something that was quite oldy-worldy.

0:28:490:28:53

I really like the cream cabinets against the green of the walls.

0:28:530:28:57

I spent a lot of time thinking about the kitchen.

0:28:570:29:00

It's just a really big thing in the house

0:29:000:29:04

so it was really important to me to get it right.

0:29:040:29:06

'Upstairs to the second floor now.

0:29:060:29:10

'Here the master bedroom has been totally refurbished and has a really homely feel.

0:29:100:29:15

'With clever use of space which hasn't infringed on the size of the room,

0:29:150:29:20

'Hannah and Nigel have added a few useful extra features.'

0:29:200:29:23

This is my master bedroom.

0:29:230:29:25

I'm really pleased with this room cos I managed to fit in an en suite bathroom.

0:29:250:29:30

It's really compact but it does everything that I need it to, so that's really good.

0:29:300:29:34

I also managed to fit in a little walk-in wardrobe, which is brilliant.

0:29:340:29:39

And I went for a really light and airy colour in here.

0:29:390:29:43

And I've got lovely sea views, so I really love my bedroom.

0:29:430:29:47

'Hannah's already moved in with some of her friends.

0:29:470:29:50

'The two smaller bedrooms continue the lovely design style she's brought to the house.

0:29:500:29:54

'The layout of the rooms hasn't changed, just the quality and finish of each.

0:29:540:30:00

'A new house, a new hairdressers, and since we last met Hannah, she's got engaged.

0:30:000:30:06

'Her fiance is going to move in once he's finished university.

0:30:060:30:10

'And it's all thanks to Dad.'

0:30:100:30:13

The general condition of the property was pretty bad, really.

0:30:130:30:17

Everything had to be replaced. The only bonus was that the roof was sound.

0:30:170:30:21

Everything below the roof wasn't.

0:30:210:30:24

'At the back, work is continuing to convert the outbuildings into a garage and store.

0:30:240:30:30

'Inside, the hairdressers isn't quite ready for Hannah to do her first cut and blow-dry.

0:30:320:30:38

'She's hoping to open soon and certainly has a clear vision for how she wants it to be.'

0:30:410:30:46

So this will be my staff room.

0:30:460:30:49

It's quite a nice, big room considering the amount of space we've got.

0:30:490:30:54

In here I'll have two wash basins. It's a bit crowded at the moment.

0:30:540:30:59

In here will be my little toilet, so that's nice, to have it indoors rather than outdoors.

0:30:590:31:05

And then through here, this will be my main salon area.

0:31:050:31:10

And I'll have my mirrors on this partition wall just over here.

0:31:100:31:14

A nice waiting area over here with a coffee machine. And then my reception desk over here.

0:31:140:31:20

'Hannah plans to give the hairdressers an opulent, pampered feel,

0:31:200:31:24

'a touch of luxury with chandeliers.

0:31:240:31:27

'It seems as though it's been a real team effort between father and daughter.'

0:31:270:31:32

Hannah had a big input. She chose the furnishings and the colour scheme.

0:31:320:31:37

And I just did the work.

0:31:370:31:40

He's been working non-stop. He works six days a week

0:31:400:31:44

and he's here at 7:30 in the mornings and he does work really hard to get everything finished.

0:31:440:31:50

'But has the hard work impacted on the budget?

0:31:500:31:54

'Did they manage to stick to the £30,000 to £35,000 they'd originally set aside for the renovation?'

0:31:540:32:00

Budget ended up, it's going to be around about £54,000.

0:32:010:32:03

It is an outcome I'm pleased with. Hannah has a home and a business

0:32:030:32:08

and financially I think it was a very good move.

0:32:080:32:12

'The project has had a really beneficial effect on their relationship.'

0:32:120:32:17

Me and my dad have always been quite close but I think the project has brought us closer.

0:32:170:32:22

We've just spent so much time together. So it's been really nice.

0:32:220:32:26

'Time to find out what two local property experts think

0:32:260:32:30

'of Hannah's new home and business venture.'

0:32:300:32:34

I think the commercial space is lovely. They've brightened it up,

0:32:340:32:37

it's light, it will work really well as a hairdressers.

0:32:370:32:43

The living space is fantastic.

0:32:430:32:45

A beautiful living room with sea views,

0:32:450:32:48

three very ample sized bedrooms, a great bathroom and an en suite off the master bedroom.

0:32:480:32:53

It all works extremely well.

0:32:530:32:55

The living space they've created is light, bright, airy.

0:32:550:32:59

They've kept the character of the property but they've brought it into this era.

0:32:590:33:03

The quality of fixtures and fittings and the decoration is to an absolutely superb standard.

0:33:030:33:09

'Remember, Nigel paid £81,000 at auction

0:33:090:33:13

'and the outlay on it was £54,000, making a total of £135,000.

0:33:130:33:19

'So what's it now worth?'

0:33:190:33:21

As a commercial and residential property combined,

0:33:210:33:25

I would put the value between £200,000 and £220,000.

0:33:250:33:29

If we were to put the whole property on the market for sale,

0:33:290:33:31

we would achieve between £200,000 and £225,000 for it in the current market.

0:33:310:33:37

'That valuation for this property with its sea views of between £200,000 and £225,000

0:33:370:33:43

'could mean a gross profit of between about £65,000 and £90,000.'

0:33:430:33:49

-Yeah, that's about what we reckoned, wasn't it?

-I thought it would be worth about 225.

0:33:490:33:53

But, yes, pleased with that valuation.

0:33:530:33:56

'Might they be tempted to cash in and enjoy the profits?'

0:33:560:34:00

-BOTH: No.

-Not at all.

0:34:000:34:03

No. Things have changed, so it's a home for Hannah and a business and a start for her,

0:34:030:34:08

so that's what we're going to do with it.

0:34:080:34:11

I'm really positive about it. I've got a house and a business

0:34:120:34:16

and everything's coming together, so it's really good.

0:34:160:34:19

I couldn't be more grateful to him, I really couldn't.

0:34:190:34:23

I'm really, really thankful that I've got the dad I do.

0:34:230:34:26

'Yeovil is a thriving market town in Somerset.

0:34:290:34:35

'A popular centre for shopping in the area, it's well connected by road and rail.

0:34:350:34:39

'The combination of country charm and modern outlook make it somewhere worth casting an eye over.'

0:34:390:34:46

So what am I here to see? Well, for a start, it's a house that's down this lane,

0:34:460:34:50

which at first glance doesn't look like it's terribly well maintained.

0:34:500:34:54

The property itself looks pretty spectacular.

0:34:540:34:56

Pretty in blue, it's a two-bedroom cottage,

0:34:560:34:59

had a guide price of £70,000 to £90,000. Let's take a look inside.

0:34:590:35:03

# In this pretty blue world

0:35:030:35:06

'From outside, this attractive 19th century cottage is almost too good to be true.'

0:35:060:35:13

Doesn't look too bad to start off with. Front room there. Seems reasonably tidy.

0:35:130:35:18

Obviously hasn't been lived in for a while. Needs a bit of love an attention for sure.

0:35:180:35:23

The rear room here. I'm wondering if you could maybe do some kind of knocking down of that wall

0:35:230:35:28

to create a big open-plan space. That would make a big difference.

0:35:280:35:32

Through to the rear of the property. You've got this little kitchen. Tired and dated.

0:35:320:35:37

Could definitely do with a bit of sorting out.

0:35:370:35:40

Apart from that, it's actually quite good.

0:35:400:35:43

Er, yeah, for a little cottage, it's a good start.

0:35:430:35:46

# In this pretty blue world

0:35:500:35:53

'The property forms part of a little Victorian terrace

0:35:550:35:58

'so it's not surprising the rooms are rather small.

0:35:580:36:02

'The ground floor is well laid out and the separate kitchen and living space mean it doesn't feel cramped.

0:36:020:36:08

'The ceiling here definitely needs work to stop the rot

0:36:080:36:12

'but so far I think the property has bags of potential.

0:36:120:36:15

'Onwards and upwards.'

0:36:150:36:18

Upstairs and a feeling that the place just needs a bit of love and attention is definitely continued.

0:36:180:36:24

But that is superb news. You've got a bathroom up here and a loo.

0:36:240:36:28

I'm not going to go in there because I understand the floorboards are a bit dodgy

0:36:280:36:32

but to have that up here is great news

0:36:320:36:35

and you wouldn't necessarily expect it from this railway worker's cottage.

0:36:350:36:40

Second bedroom, good size, big windows. I really like this little cottage.

0:36:400:36:44

'There's plenty of character here but there's also elderly wiring and signs of neglect.

0:36:460:36:52

'However, it's a lovely canvas just waiting for a splash of inspiration.

0:36:520:36:57

'But outside, there's one detail that might deter some purchasers.

0:36:570:37:01

'The cottage is beside a mobile home park for retired people.

0:37:010:37:06

'So there won't be the sweeping views of countryside you might have hoped to see out the windows.

0:37:060:37:12

'But hopefully it is quiet.

0:37:120:37:15

'Hopefully that should not be too much of a drawback when what you do have here

0:37:190:37:24

'is a quaint little cottage which had an enticing guide price of between £70,000 and £90,000.

0:37:240:37:31

'We asked a local property expert to tell us what he thought of it.'

0:37:310:37:36

First impressions of the property are that it's a nice Victorian

0:37:370:37:41

end-of-terrace cottage. It does need a fair amount doing to it.

0:37:410:37:45

It would benefit from a new kitchen and bathroom. There are pluses.

0:37:450:37:49

It's had double glazing installed. It's had a heating system installed fairly recently.

0:37:490:37:54

So there's a reasonable amount to do but some of the major items were taken care of by the last owner.

0:37:540:38:00

'One thing that still needs to be taken care of is the lane leading up to the house.

0:38:000:38:05

'It's unadopted, meaning the local council isn't responsible for repairs.

0:38:050:38:10

'But it's unclear who is.'

0:38:100:38:12

The issue with the access is probably a little bit more relevant

0:38:120:38:16

and I can imagine quite a number of future buyers being put off

0:38:160:38:20

by the fact that there is a question mark over the access track.

0:38:200:38:23

'But if that puzzle doesn't discourage the buyer and they manage to take care of all the renovations,

0:38:230:38:29

'what might this cottage be worth?'

0:38:290:38:32

It's certainly got the potential to reach £125,000, the stamp duty threshold.

0:38:320:38:37

'What rental income could the property generate?'

0:38:370:38:41

I'd probably put the rental value at around about £600 per calendar month.

0:38:430:38:47

Well, it's certainly a lovely little cottage in a great part of the world

0:38:470:38:51

but its location down this lane and surrounded as it is could put some people off.

0:38:510:38:56

So let's see what happened when it went to the auction.

0:38:560:38:59

Who'll start me at 70?

0:39:030:39:05

70 I've got. At 70,000. If you're happy for the lady to have that at 70, keep your hands in your pockets.

0:39:050:39:10

Cos 70 it is. 70 I've got.

0:39:100:39:12

At 70. At 70. Oh, 72.

0:39:120:39:15

You saw it. 74.

0:39:150:39:18

76. 78. And 80.

0:39:180:39:21

81 if it'll help.

0:39:210:39:24

81. 82.

0:39:240:39:26

Looking back to the lady. 83 or not?

0:39:260:39:29

83. At 83. Half?

0:39:290:39:32

83 you're in, madam. 83. At 83 for the first time.

0:39:320:39:36

Perfectly pleasant house.

0:39:360:39:38

At 83 second time. 83, sure and done?

0:39:380:39:42

Aisle seat's got it. Wave or don't.

0:39:420:39:44

-At 83 and done at 83.

-HAMMER BANGS

-Madam, yours. Well done.

0:39:440:39:49

'The tenacious bidder who snapped up the property for £83,000 was Lisa.

0:39:490:39:55

'She and her husband Keith are cabinet makers.

0:39:550:39:58

'So will they see the potential waiting to be carved out in this cottage?

0:39:580:40:03

'I hope so, seeing as they live right next door.'

0:40:030:40:06

# Oh, yes

0:40:060:40:09

# The house next door is a warm home

0:40:090:40:13

# I don't see how...

0:40:130:40:15

-Lisa, Keith, congratulations.

-BOTH: Thank you.

-You got yourselves a little cottage.

0:40:150:40:20

-Yep.

-Why did you want to buy it?

0:40:200:40:22

We wanted an investment for the future.

0:40:220:40:25

-We're self-employed, haven't got a pension fund, so this is it.

-And it's next door.

0:40:250:40:30

In that respect, it's nice, when we want to do the work, haven't got far to go.

0:40:300:40:33

And the idea is then to rent it out?

0:40:330:40:36

Ten-year plan. At the end of the ten years, sell this, my mother lives in the park home just up the lane,

0:40:360:40:44

sell hers and buy somewhere in the country with an annex or a garage

0:40:440:40:48

-for Nanny to live in.

-A garage?

0:40:480:40:52

Well, an annex.

0:40:520:40:54

'I think they call it a granny flat, Keith.

0:40:540:40:58

'As the couple already live next door, the view of the retirement park came as no surprise.

0:40:580:41:03

'But as they bought this cottage as a rental investment,

0:41:030:41:06

'are they worried the location might put off potential tenants?'

0:41:060:41:10

No. It keeps it quiet. To have a park home, I think they've got to be over 55,

0:41:120:41:16

-so there's not any wild parties.

-I know a few wild 55-year-olds!

0:41:160:41:22

# My grandma gave a party last Saturday night

0:41:220:41:25

'No noisy neighbours then, hopefully.

0:41:270:41:30

'But inside, how are Keith and Lisa planning to put their skills to use?'

0:41:300:41:35

The kitchen is the first thing, I think.

0:41:350:41:38

Well, one of the first things we can actually start working on at the workshop,

0:41:380:41:43

get the units made, ready to come in.

0:41:430:41:45

Knock through from the dining room into the sitting room,

0:41:450:41:48

put a joist in.

0:41:480:41:51

New bathroom. It's a bit of a state up there.

0:41:510:41:54

There again we'll do built-in furniture. There's a boiler which can become an airing cupboard,

0:41:540:42:02

it's got room for it. Built-in sink unit with storage.

0:42:020:42:06

'Lisa and Keith are doing most of the work themselves.

0:42:060:42:09

'They aim to let the cottage out within six months.

0:42:090:42:12

'They won't cut any corners and are hoping their budget of £15,500 will stretch far enough.

0:42:120:42:19

'Judging by the work they've done to their own home, their craftsmanship is sure to be top-notch.'

0:42:190:42:25

You've obviously got very high standards, but this is a rental property

0:42:250:42:29

so how are you going to keep your budget in check and not go overboard?

0:42:290:42:33

The main thing is, I would rather put in good quality,

0:42:330:42:36

but when we do come to sell it, eventually,

0:42:360:42:40

it's still going to be good quality stuff in here.

0:42:400:42:42

So I think that's more cost effective than to keep putting cheap stuff in

0:42:420:42:48

every time you change who's renting it.

0:42:480:42:50

-Fantastic. Congratulations and good luck with it.

-Cheers.

-Thank you.

-I think we're going to need it.

0:42:500:42:56

Well, Lisa and Keith certainly couldn't wish for a better rental property

0:42:570:43:02

in terms of the commute to work and I can't wait to see what they do to the place.

0:43:020:43:06

All those bespoke fittings! It could well be the best-fitted rental property in Yeovil!

0:43:060:43:12

Find out how they get on later in the show.

0:43:120:43:14

So have our developers come out on top?

0:43:170:43:19

-Or have they lost the renovation battle?

-Let's find out.

0:43:190:43:23

'Time to return to the old coalmining village of Elvington in Kent.

0:43:230:43:28

'It was here that Raj bought this former working men's club for £151,000.

0:43:280:43:34

'He used to run his own IT business. To buy this, he was given financial help by his father, Sean,

0:43:340:43:40

'who's been a successful property developer for 40 years.

0:43:400:43:43

'This is Raj's first bit project and he's certainly set himself a challenge.'

0:43:430:43:49

Where do you think the potential lies with this?

0:43:490:43:52

We've been talking to the locals here and the council and we believe there is scope here

0:43:520:43:58

to demolish this and build a few small properties on here.

0:43:580:44:03

'Raj hoped to build ten houses on the site.

0:44:030:44:07

'But that was all going to depend on the planning permission.

0:44:070:44:10

'It's now eight and a half months later when we meet up with Raj and Sean.

0:44:110:44:17

'There's no sign of any demolition work and the building is looking in an even worse state.

0:44:170:44:22

'You can't even have a game of snooker any more.

0:44:240:44:27

'But it sounds like Raj could still be on cue to pocket a profit here.'

0:44:270:44:32

I managed to obtain planning permission

0:44:320:44:35

for eight properties on this piece of land

0:44:350:44:38

and to demolish the old property.

0:44:380:44:41

'There'll be eight properties, two three-bedroom semis and six terraced houses.

0:44:410:44:46

'Four of those will be three-bedroom and a couple two-bedroom.'

0:44:460:44:51

Where we're standing at the moment is where the two-bedroom properties are going to be.

0:44:510:44:55

To my left, there will be a block of three, and to my right, there will be another block of three.

0:44:550:45:01

Each property is going to have two car parking spaces. They've got quite big gardens.

0:45:010:45:05

And eight properties on this size plot, I think it's going to be quite nice.

0:45:050:45:10

'So the derelict former working men's club is to be demolished.

0:45:100:45:14

'But how long before work begins?'

0:45:140:45:17

I think we're going to be building eight weeks from now.

0:45:170:45:21

We're going to be building two properties first, which are the two on the corner.

0:45:210:45:25

Once they are watertight, then we can demolish this property,

0:45:250:45:30

the reason being, we need a secure area.

0:45:300:45:34

'So the club's got a stay of execution of a few weeks.

0:45:340:45:37

'But even then, some of it will live on.'

0:45:370:45:40

Everything that's been demolished from here is going to get reused.

0:45:400:45:44

The bricks we've already sold. Someone is building a house that needs these bricks and they're gone.

0:45:440:45:50

'That will bring in some money and help the environment. But what about the big financial picture?

0:45:520:45:57

'How much has Raj spent so far?'

0:45:570:45:59

I've spent, actually gone out of my pocket for this property at the moment, £162,000,

0:46:010:46:07

including the purchase price.

0:46:070:46:09

We've committed to now approximately £10,000 more,

0:46:090:46:15

which is the building regs, all the other reporting.

0:46:150:46:19

Then it's just whatever the building costs are.

0:46:190:46:21

'How much does he estimate each house will cost to build?'

0:46:210:46:26

My target is £50,000.

0:46:260:46:28

That was supposed to include all the fees and everything

0:46:280:46:34

but I think that's going to be over the top of that now.

0:46:340:46:36

'Though planning consent has been granted, there are still a few hoops for Raj to jump though.

0:46:360:46:43

'And of course there was the issue of a possible disused coal mine under the site.'

0:46:430:46:48

# Working in a coal mine, going down, down, down

0:46:480:46:52

There's no conditions on anything to do with mining.

0:46:520:46:55

Had there been any doubt, there would've been planning conditions.

0:46:550:46:59

As there is none, that means there's no doubt.

0:46:590:47:02

'Raj has taken on an ambitious build for his first development project. So is he confident?'

0:47:030:47:09

Eight properties, yeah, I can cope with that.

0:47:110:47:13

Dad is my rock.

0:47:130:47:15

If I've got a problem, he's the one I fall back on. He's been doing this for 40 years,

0:47:150:47:20

knows practically everything there is to know about building.

0:47:200:47:24

Time to find out what two local property experts think

0:47:240:47:27

of the planned new development here

0:47:270:47:30

at this former working men's club.

0:47:300:47:33

I'd say, for the size of the plot, the planning that's been granted

0:47:330:47:37

for eight houses seems to be about the right number.

0:47:370:47:40

I think nine would've squeezed one too many in.

0:47:400:47:43

The current planning approval is for two terraces of three

0:47:430:47:48

and a pair of semi-detaches.

0:47:480:47:50

That fits in well on this triangular plot

0:47:500:47:52

as it has two road frontages to highways

0:47:520:47:55

and the majority of property around is terraced and semi-detached.

0:47:550:48:01

'So far, Raj has committed to spend £172,000 buying the property and on the planning application.

0:48:010:48:09

'He also estimates that building costs for the eight houses would be £400,000.

0:48:090:48:14

'So his projected total outlay is looking like it'll be around £572,000.

0:48:140:48:20

'How much could it all be worth?'

0:48:200:48:23

The smaller two-bedroom houses, the mid-terrace one is probably going to be £110,000 to £115,000.

0:48:230:48:31

And then the spectrum will run through to the largest three-bedroom semi-detached with a garage

0:48:310:48:36

at probably £150,000.

0:48:360:48:38

With the garages and off-road parking, I would say the two-bedroom houses

0:48:380:48:42

will probably sell for about £120,000 to £130,000

0:48:420:48:46

and the three-bedrooms for about £150,000.

0:48:460:48:49

'So, if Raj was able to sell the two semis for £150,000

0:48:500:48:55

'and the six terraced ones for between £110,000 and £130,000,

0:48:550:49:00

'that would generate somewhere around the £1 million mark.

0:49:000:49:04

'That's almost double his projected investment of £572,000.

0:49:040:49:08

'Not too shabby at all.'

0:49:080:49:11

By the time these properties are on the market, they're going to be a little bit more.

0:49:130:49:17

But even at those figures, I'm happy.

0:49:170:49:22

'With the potential of doubling your dosh, Raj, I'm not surprised.

0:49:220:49:26

'So when will the houses be ready to sell?'

0:49:260:49:30

I think, realistically, five to six months will see two completed properties

0:49:300:49:36

and then another three months after that, you'll see the others completed, as well.

0:49:360:49:41

I'm looking forward to putting that first shovel in the ground.

0:49:410:49:44

I'm really looking forward to it. I can't wait to put that in there. That will be a big day for me.

0:49:440:49:50

'Time to head back to Yeovil in Somerset where earlier in the programme,

0:49:550:50:00

'Lisa and her husband Keith bought this two-bed cottage right next door to their own home.

0:50:000:50:06

# The house next door is a warm home

0:50:060:50:11

'They paid £83,000 for it and planned to renovate it and then rent it out.

0:50:110:50:17

'The couple are professional cabinet makers and were going to do most of the work themselves.'

0:50:170:50:23

-Why did you want to buy it?

-We want an investment for the future.

0:50:230:50:28

We're self-employed, haven't got a pension fund, so this is it.

0:50:280:50:32

Ten-year plan. At the end of the ten years, sell this, my mother lives in a park home just up the lane,

0:50:320:50:40

sell hers and buy somewhere in the country with an annex.

0:50:400:50:43

'Eight months later, we met up with Keith and Lisa.

0:50:430:50:48

'At least they didn't have too far to travel.

0:50:480:50:51

'They've built new cupboards in the hallway.

0:50:530:50:56

'The wall which separated the two reception rooms has been removed,

0:50:570:51:02

'creating one large living room with solid-wood flooring.

0:51:020:51:06

'There's more carpentry work around the chimney breast.

0:51:100:51:13

'And in the front room, their seven-year-old son Ben

0:51:180:51:22

'is adding the finishing touches.

0:51:220:51:25

'Creating one large living room has been a great move

0:51:290:51:32

'and adding this French door really draws the eye out into the garden.'

0:51:320:51:38

It's something we wanted to do on our own property which we haven't got round to.

0:51:380:51:42

In a way, this is an experiment, and we think it's worked well

0:51:420:51:45

by opening up the dining room up into the garden, which we think will be a real boon in the summer.

0:51:450:51:51

I think it'll be really nice.

0:51:510:51:53

'The garden's not huge but Keith's had a tree cut down, levelled the plot

0:51:530:51:58

'and it just needs finishing off.

0:51:580:52:01

'Beyond the living room, the kitchen's been totally refitted.

0:52:010:52:05

'And, of course, Lisa and Keith have crafted the kitchen units.

0:52:050:52:09

The kitchen was great for us because it's what we do every day.

0:52:090:52:15

We made the drawers out of solid oak with dovetail joints

0:52:150:52:19

and self-close runners.

0:52:190:52:22

All the kitchen is solid timber with a painted finish.

0:52:220:52:26

We didn't have much scope for putting a lot in

0:52:260:52:29

but we feel that we've maximised the space with a lot of storage.

0:52:290:52:34

'Upstairs, the two bedrooms are decorated ready for carpeting

0:52:340:52:39

'and both have handmade wardrobes.

0:52:390:52:42

'The bathroom has been completely stripped out and refitted.

0:52:460:52:50

'At the top of the house, they've converted the attic into extra accommodation.

0:52:520:52:58

'It didn't need planning permission as it fell within their permitted development.'

0:52:580:53:02

This is the attic room which didn't exist at all when we bought the property.

0:53:020:53:06

We've had the staircase put in and a nice storage unit which could be used for books.

0:53:060:53:12

The loft storage space. The beams we've left exposed.

0:53:120:53:16

We thought the timbers looks quite nice. It'll make a nice, bright and airy study or play room

0:53:160:53:22

or home office.

0:53:220:53:24

'They had hoped to get the house finished and let out within six months

0:53:240:53:28

'as that's the length of time this property was allowed to lie vacant without paying council tax.

0:53:280:53:34

'In the end, it's taken eight months. But did they manage to stick to their budget?'

0:53:340:53:39

Our final budget was supposedly £15,000

0:53:390:53:44

but we've stuck to about £16,000 for everything,

0:53:440:53:50

including the seller's fees, extra council tax and water that we've had to pay. I'm pretty happy with that.

0:53:500:53:57

'Living next door was a bonus. It meant they could pop in and do the work whenever they wanted.

0:53:570:54:03

'Now the cottage is almost finished, have they thought about moving in themselves?'

0:54:030:54:08

-No.

-No.

-No.

0:54:090:54:11

-As much as it would be nice, no, we can't afford to.

-Not financially. We need to rent it out.

0:54:110:54:18

We've already got people who want to move in. They're our neighbour's family.

0:54:180:54:22

So that's been ideal for us.

0:54:220:54:25

'Time to find out what two local estate agents think of the cottage

0:54:270:54:32

'that Keith and Lisa have so lovingly refurbished.'

0:54:320:54:35

The kitchen and bathroom are both very good.

0:54:350:54:38

They've got that wow factor that first-time buyers particularly

0:54:380:54:42

will be looking for and sold on.

0:54:420:54:45

First impressions are excellent. It's a massive change from last time.

0:54:450:54:49

The oak floors, the fireplaces back in place.

0:54:490:54:52

Pretty much every room has got built-in storage

0:54:520:54:55

that's been done to a fantastic standard, as you'd expect from cabinet makers.

0:54:550:55:00

I think the attic room has actually enhanced it quite a bit.

0:55:000:55:03

They don't always work, but I think the access to it is not bad

0:55:030:55:06

and it's very useful additional space to a property of this size.

0:55:060:55:10

'Have they managed to add value here?

0:55:100:55:13

'Remember, they paid £83,000 for it and have spent another £16,000,

0:55:130:55:18

'so £99,000 in total. What's it now worth?'

0:55:180:55:23

I would expect it to reach a figure in the region of £120,000 to £125,000.

0:55:240:55:30

I would say, after the refurbishment, the resale value is likely to be in the region of £125,000.

0:55:300:55:36

'That valuation range could produce a gross profit of £21,000 to £26,000.

0:55:360:55:43

'Is that the sort of figure they'd expected?'

0:55:430:55:45

-Happy with that.

-Yeah.

-Can't complain.

0:55:450:55:49

'Of course, they plan to rent it out and already have a tenant lined up.

0:55:490:55:53

'So what could that earn?'

0:55:530:55:55

Rental valuation, I would put it in the region of £625 per calendar month.

0:55:550:56:00

I think the property is an excellent proposition for rental

0:56:000:56:03

and I would expect it to achieve rental in the region of £550 per calendar month.

0:56:030:56:08

They've already agreed to pay the £625 per calendar month,

0:56:080:56:12

which is brilliant, so it's nice to have people that you know moving in.

0:56:120:56:16

'They've certainly transformed the property and have a tenant who they know about to move in.

0:56:180:56:23

'You may remember their long-term plan was to sell the two properties

0:56:230:56:27

'and then move to a large house with Keith's mum. But they must feel very proud of this refurbishment.'

0:56:270:56:33

We do, yeah. It's really nice to know that we've done it.

0:56:330:56:37

-But I don't think we'll ever do it again.

-No.

-Once is enough.

0:56:370:56:40

-Maybe if it was for ourselves, a big property that we...

-The next thing.

0:56:400:56:45

Then maybe, yeah. But no. Never again.

0:56:450:56:49

-Not enough for you? Worry not.

-We'll have plenty more stories for you

0:56:510:56:55

-next time on Homes Under The Hammer.

-See you then.

-Goodbye.

-Goodbye.

0:56:550:56:59

Subtitles by Red Bee Media Ltd

0:57:010:57:05

E-mail [email protected]

0:57:050:57:09

Martin Roberts and Lucy Alexander visit a two-bedroom cottage in Somerset, a club premises and manager's flat in Dover and a three-storey period property in Norfolk. All of these properties have been sold at auction, and Martin and Lucy find out who bought them and what they paid when they went under the hammer.