0:00:02 > 0:00:04Hello. Buying property via the traditional means
0:00:04 > 0:00:08can often involve getting caught in a chain which means lengthy delays.
0:00:08 > 0:00:10If you buy at auction, you get a very quick result.
0:00:10 > 0:00:13The property could be yours in a matter of weeks.
0:00:13 > 0:00:16We have three properties on today's show to whet your appetite.
0:00:42 > 0:00:46Most properties need some money and time spent on them before you can live in them.
0:00:46 > 0:00:51Renovating means you can add value, which is always the ideal.
0:00:51 > 0:00:56So which properties had the magic wand waved over them on today's show?
0:00:57 > 0:01:02'The value of this Cornish building plot depends on one important factor.'
0:01:02 > 0:01:07Without planning permission, this plot of land would probably be worth just a few thousand quid.
0:01:07 > 0:01:10'In Kent, there's a chip shop with a flat that went to auction,
0:01:10 > 0:01:13'both in need of attention.'
0:01:13 > 0:01:16But saying that, there's quite a bit of character to the building.
0:01:17 > 0:01:22'And in Stockport, there could be a problem with the tiny kitchen in this house.'
0:01:22 > 0:01:27I'm not sure what you do about that. Actually, I am sure. Get rid of this wall.
0:01:28 > 0:01:33'All these properties went to auction and we'll find out who bought them
0:01:33 > 0:01:37- 'and what they paid when they went under the hammer.' - Just bought it, sir.
0:01:41 > 0:01:44This is Portreath in Cornwall.
0:01:44 > 0:01:49Apart from being a beautiful place, it holds a key place in Cornish industrial history.
0:01:49 > 0:01:54Copper ore would be mined here and sent to Swansea for smelting
0:01:54 > 0:02:01and the ships would return with Welsh coal which would power the engines in the mines in Cornwall.
0:02:01 > 0:02:07Let's hope the property I'm here to see can create such a virtuous circle.
0:02:07 > 0:02:10'It's certainly a glorious location,
0:02:10 > 0:02:14'but does the lot I'm here to see do justice to its surroundings?'
0:02:17 > 0:02:22The lot went to the auction with a guide price of £60,000 to £70,000.
0:02:22 > 0:02:25Given that the average house round here costs about £170,000,
0:02:25 > 0:02:30is it going to be a complete wreck, something that needs total renovation?
0:02:30 > 0:02:32Actually, you know what? No.
0:02:32 > 0:02:35It's a plot of land.
0:02:36 > 0:02:42'And it's land with a beautiful backdrop, just look at those views to the side.
0:02:43 > 0:02:47'But it's not just the vista that I'm excited about.
0:02:47 > 0:02:53'This land comes with that all-important planning permission to erect a four-bedroom house.'
0:02:57 > 0:03:02Without planning permission, this plot of land would probably be worth just a few thousand quid.
0:03:02 > 0:03:07But with planning permission, it's worth that guide price of 60,000 and 70,000 quid.
0:03:07 > 0:03:12So, what are the plans that have been passed? It's for a four-bedroom detached property.
0:03:12 > 0:03:18Fairly simple, I have to say, but on the other hand, fits in very well with what's around here
0:03:18 > 0:03:22and that certainly makes a lot of sense. Front elevations, rear elevations here.
0:03:22 > 0:03:26Making the most of the plot, pretty much filling it side to side.
0:03:26 > 0:03:29In terms of the internal layout,
0:03:29 > 0:03:32lounge at the front, downstairs WC which is nice, a utility
0:03:32 > 0:03:38and a large kitchen with patio doors, making the most of the view out the back. That's downstairs.
0:03:38 > 0:03:42Then go upstairs and they've managed to cram in four bedrooms and a bathroom.
0:03:42 > 0:03:47I am a bit concerned that some of the bedrooms, especially bedroom four, are very small.
0:03:47 > 0:03:52But not bad and, most importantly, they're passed. You don't have to worry about it.
0:03:58 > 0:04:04'So, whoever bought this plot of land could come in and start work straight away if they wanted.
0:04:05 > 0:04:09'Another great bonus is that there's even a dropped kerb,
0:04:09 > 0:04:12'making it easier to access the plot.
0:04:12 > 0:04:18'This also saves you the hassle and expense of having to contact the Highways Agency for permission.'
0:04:18 > 0:04:24# Let's build a house where we can stay
0:04:24 > 0:04:28'Will a local property expert share my enthusiasm for this auction lot
0:04:28 > 0:04:32'that went under the hammer guided at £60,000 to £70,000,
0:04:32 > 0:04:35'some land, a view, plus that tempting planning permission?'
0:04:38 > 0:04:41Interesting plot of land. Quite exciting.
0:04:41 > 0:04:45Good plans. Accommodation is quite spacious.
0:04:45 > 0:04:47The layout looks good, particularly on the ground floor.
0:04:47 > 0:04:53However, on the first floor there are four bedrooms, which I think may be overkill for the square footage.
0:04:53 > 0:04:59I believe the purchaser may consider reducing the number of bedrooms on the first floor from four to three
0:04:59 > 0:05:04which would mean it would be a much more spacious family environment and more appealing to the market.
0:05:04 > 0:05:08'Once the house has been built as a three or four-bedroom property,
0:05:08 > 0:05:12'how much rental income could an investor achieve by letting it out?'
0:05:14 > 0:05:20A three to four-bedroom house would fetch somewhere in the region of £750 per calendar month.
0:05:20 > 0:05:25'If the plans were followed exactly and a four-bedroom house built,
0:05:25 > 0:05:28'how much could the property be worth on the market?'
0:05:29 > 0:05:32Typically, a four-bedroom detached house in this sort of location
0:05:32 > 0:05:38could fetch somewhere between £180,000 and £195,000, depending on the specification.
0:05:39 > 0:05:42'An impressive end figure for the house.
0:05:42 > 0:05:47'Whoever bought it at auction will have their auction cost plus the expense of the build
0:05:47 > 0:05:50'to factor in before any profit can be made.'
0:05:50 > 0:05:55So, a nice enough building plot. Great location, right on the edge of the village, fairly flat
0:05:55 > 0:05:58and it does have that all-important planning permission.
0:05:58 > 0:06:01Let's see who went for it when it went under the hammer.
0:06:02 > 0:06:07Lot three. So it's consent for a four-bedroom detached house,
0:06:07 > 0:06:09garden, off-road parking.
0:06:09 > 0:06:14So, development site with the planning consent, four-bed house.
0:06:14 > 0:06:1660,000 kick me off. At 60.
0:06:16 > 0:06:20Tell you what, I'll ask 50... Oh, choice of two.
0:06:20 > 0:06:2450. 52. 54.
0:06:24 > 0:06:2756. 58. At 58.
0:06:27 > 0:06:30At 58. 60. At 60.
0:06:30 > 0:06:34A half? 60. A half. 60 and a half.
0:06:34 > 0:06:3761. 61.
0:06:37 > 0:06:40And a half. Bit of a battle here. 62.
0:06:40 > 0:06:4462. Half. 63.
0:06:44 > 0:06:4663 and a half.
0:06:46 > 0:06:49The front now says 64. 64 and a half.
0:06:49 > 0:06:5464 and a half. 65. 65.
0:06:54 > 0:06:56And a half.
0:06:56 > 0:06:5865 and a half. 66.
0:06:59 > 0:07:03And a half. 67.
0:07:04 > 0:07:08Both of you at the same time. 67 and a half. And 68.
0:07:08 > 0:07:1168 is front, not back. At 68.
0:07:11 > 0:07:13At 68. And 500. At 68 and a half.
0:07:13 > 0:07:17At 68 and a half left. You're both out.
0:07:17 > 0:07:20At 68 and a half, the lady's here. At 68 and a half once.
0:07:20 > 0:07:23At 68 and a half twice.
0:07:23 > 0:07:27At 68 and a half, all done, the young lady has it. Here we go.
0:07:27 > 0:07:30- At 68,500. - HAMMER BANGS - Madam, yours, congratulations.
0:07:30 > 0:07:36'That final bid of £68,500 came from Christine.
0:07:36 > 0:07:41'She's originally from the Midlands, but moved down to Cornwall in 2004.
0:07:41 > 0:07:45'She bought a cottage which she renovated and turned into a successful bed and breakfast.
0:07:45 > 0:07:48'She's brought her dog Pip along to have a look, too.
0:07:48 > 0:07:52'I wouldn't get too used to it though, Pip.
0:07:52 > 0:07:55'With any luck, there'll soon be a house standing on this strip of land.'
0:07:55 > 0:07:59- Christine, lovely to meet you. - Lovely to meet you, as well, Martin.
0:07:59 > 0:08:03- Congratulations.- Thank you. - Tell me why you wanted to buy this bit of land.
0:08:03 > 0:08:06Well, it's a project that I've been thinking of doing for 12 months
0:08:06 > 0:08:09and I've just got to do it now.
0:08:09 > 0:08:13It came up for auction and I thought, "This is it, this is the one I want."
0:08:13 > 0:08:15What specifically were you looking for?
0:08:15 > 0:08:20Well, it's a new build and there's planning permission already granted for it,
0:08:20 > 0:08:23which cuts a lot of the trouble out.
0:08:23 > 0:08:28And I just want to make a house and sell it.
0:08:28 > 0:08:34Right. So what inspired you to do this? Is it something you've always wanted to do or is it your job?
0:08:34 > 0:08:37No, it isn't my job. I've renovated two houses,
0:08:37 > 0:08:40a little bungalow and the house I'm in now in Cornwall,
0:08:40 > 0:08:44- and I just like the idea of it all coming together.- Right.
0:08:44 > 0:08:47Big step to build your own place, though. It's a bit of a leap.
0:08:47 > 0:08:51- I think this'll be easy because I'm going to get a firm of builders to do this one.- Right.
0:08:51 > 0:08:54- You don't have to do the work.- Yeah.
0:08:54 > 0:08:58'Employing a builder to manage the whole process does make sense for Christine
0:08:58 > 0:09:03'or any developer unless they've got experience of similar projects.
0:09:03 > 0:09:10'Building a house from scratch is rather different from managing an extension to an existing property.'
0:09:10 > 0:09:13So why this plot and why here?
0:09:13 > 0:09:16Well, it was up for auction. There was another one I was interested in
0:09:16 > 0:09:19but it was pulled out of the sale before the day.
0:09:19 > 0:09:23But this village is lovely. It's a nice village.
0:09:23 > 0:09:26It's not too far from the coast. It's got a lovely feel to it.
0:09:26 > 0:09:29- Did you know this village before you saw the plot?- No.
0:09:29 > 0:09:35I've got a friend who lives in the next village down, but I'd never been through here before.
0:09:35 > 0:09:39So was the fact that it had planning permission already granted a big draw?
0:09:39 > 0:09:45Yes, it was. Because I really wanted a simple build this time,
0:09:45 > 0:09:47for my first new build, a simple build.
0:09:47 > 0:09:53And I quite liked the look of it. But it's a four-bedroom house but it's a small house
0:09:53 > 0:09:55and I'm going to reduce it to three bedrooms.
0:09:55 > 0:09:59'Providing Christine doesn't change the exterior appearance of the house,
0:09:59 > 0:10:03'hopefully she won't have to re-submit the plans for approval.
0:10:03 > 0:10:09'I agree that three larger bedrooms would be better than four smaller ones.
0:10:09 > 0:10:11'So is she ready to start?'
0:10:11 > 0:10:18- Have you sourced local builders yet? - I will want local builders but I haven't sorted anyone out yet.
0:10:18 > 0:10:22I'm still talking to the architect and then we're going to get everything ready
0:10:22 > 0:10:26- to ask for tenders from builders. - Great. How many tenders are you going to get?
0:10:26 > 0:10:31- Oh, at least three. Is that right? - Yeah, absolutely! The more, the merrier!
0:10:31 > 0:10:34You'll be amazed at the variation.
0:10:35 > 0:10:39'I would always ask for references because if you're handing over the whole project,
0:10:39 > 0:10:43'you have to ensure the work's carried out at maximum speed.
0:10:43 > 0:10:46'Delays cost money and it'll be you that's paying.'
0:10:48 > 0:10:51In terms of the cost, do you have an idea of what it's going to cost?
0:10:51 > 0:10:57- Well, my budget is £80,000 to £85,000 for the build.- OK.
0:10:57 > 0:11:01- So tight but not outrageous. - Not outrageous.
0:11:01 > 0:11:05- And timescales for getting it all sorted?- Ten months. I think I should do it for ten months.
0:11:05 > 0:11:08Right, OK. And then after that?
0:11:08 > 0:11:11I shall be looking for another one, I think.
0:11:11 > 0:11:14What do you think the biggest challenge facing you is?
0:11:14 > 0:11:17I can't see a problem with the build.
0:11:17 > 0:11:21It's selling it. I don't know what will be happening in ten months' time.
0:11:21 > 0:11:24I guess that's the biggest problem.
0:11:24 > 0:11:29If I can't sell, then I would rent it out for a while and keep it.
0:11:29 > 0:11:34But, of course, I wouldn't be able to do another project next year, so I really would like to sell.
0:11:34 > 0:11:40- Listen, good luck with it all. We really look forward to seeing how you get on.- Thank you. Thank you.
0:11:40 > 0:11:44# Where we can stay, b-b-b-build
0:11:44 > 0:11:46# Add a new bit every day
0:11:46 > 0:11:49So, lots of challenges ahead for Christine
0:11:49 > 0:11:53as she enters into the world of her first new-build property development.
0:11:53 > 0:11:57She's got to find builders. Will she be able to stick to those budgets?
0:11:57 > 0:12:01You can find out how she gets on later in the show.
0:12:04 > 0:12:09'This is Strood, a Medway town in Kent, just across the river from Rochester.
0:12:09 > 0:12:14'Over a billion pounds of investment is planned for the area over the next 20 years.
0:12:14 > 0:12:17'And with excellent transport links to London,
0:12:17 > 0:12:21'this could be good news for anyone thinking of buying in the area.'
0:12:21 > 0:12:26The property I'm here to see today is right in the heart of Strood town centre.
0:12:26 > 0:12:32It's a mixed commercial/residential unit, it's got a shop on the ground floor and a flat above.
0:12:32 > 0:12:37As you can see, it's an old fish and chip shop. Looks a bit battered from the outside.
0:12:37 > 0:12:41But "cod" you make some money here? Better get my "skates" on
0:12:41 > 0:12:43and take a look around this "plaice"!
0:12:43 > 0:12:46Sorry, I couldn't resist the fish puns. I'm going in.
0:12:48 > 0:12:52'The shop's been a fish and chippy for many, many years.
0:12:52 > 0:12:56'In fact, it's been in the same family ownership since the 1920s.
0:12:56 > 0:12:59'Along with that flat spread over two floors,
0:12:59 > 0:13:02'it was guided at £140,000 to £150,000.
0:13:02 > 0:13:05'So is it worth its salt or as sour as vinegar?'
0:13:05 > 0:13:10Well, this is as you'd expect any chippy to be,
0:13:10 > 0:13:13apart from it doesn't smell as nice as a chippy when it's up and running.
0:13:13 > 0:13:16It's got a bit of a horrible stale smell in here.
0:13:16 > 0:13:20But it's spacious, you can see loads of the equipment has been left,
0:13:20 > 0:13:25you've got the till here, the counter, another till, there's the deep fat fryer there.
0:13:25 > 0:13:30You can also see there's quite a lot of space out the back there. So there is the potential to extend.
0:13:30 > 0:13:34I think this could be a fantastic business opportunity for somebody.
0:13:34 > 0:13:38You could come in here and almost set up straight away.
0:13:39 > 0:13:43'The shop floor stretches right back and includes the staff kitchen,
0:13:43 > 0:13:49'a preparation room complete with potato chipper and walk-in cold store for wet fish.'
0:13:50 > 0:13:56This ex-fish and chip shop has an A3 business rating, which is a hot food outlet,
0:13:56 > 0:13:59and it could easily be changed to A1 and A2 usage.
0:13:59 > 0:14:02So, for example, this could become a shop,
0:14:02 > 0:14:07it could become a hairdressers, drycleaners, an estate agent or even a bank.
0:14:07 > 0:14:10It could be an undertakers, a pet shop, a betting office.
0:14:10 > 0:14:14Do you know what? The options are almost endless.
0:14:15 > 0:14:19# There's a guy works down the chip shop swears he's Elvis
0:14:20 > 0:14:25# Just like you swore to me that you'd be true
0:14:25 > 0:14:27'Whether the chippy changes its use or not,
0:14:27 > 0:14:30'upstairs certainly needs attention.'
0:14:30 > 0:14:35OK, so we can't get too excited about the flat upstairs
0:14:35 > 0:14:39because when you look closely, you can see it's been absolutely ripped apart.
0:14:39 > 0:14:44Somebody must have been in here and just literally gutted it.
0:14:44 > 0:14:49The walls need plastering, there's no ceilings, you've got all the bare brickwork everywhere.
0:14:49 > 0:14:52But saying that, there's quite a bit of character to the building.
0:14:52 > 0:14:58Some of the rooms are quite quirky. I'm not quite sure about this lovely feature here.
0:14:58 > 0:15:03I think this is part of the extractor for the fish shop to get rid of all those horrible smells.
0:15:03 > 0:15:06So somebody would have to sort that out. That would have to go.
0:15:06 > 0:15:10But when you think the fish shop downstairs is ready to go, this flat is not.
0:15:10 > 0:15:14You need to spend a lot of time and money sorting this place out.
0:15:14 > 0:15:20'There are four other rooms, but all in a similar state, including the staff loo.
0:15:20 > 0:15:24'So there's some significant work to do here. But even if this flat was habitable,
0:15:24 > 0:15:29'you wouldn't be able to rent it out or sell it separately from the shop below.'
0:15:30 > 0:15:35The problem with this purchase is that there's no separate entrance to this flat up here.
0:15:35 > 0:15:40So you come straight down here and you walk into the back of the deep fat fryer in the shop.
0:15:40 > 0:15:46So that's not ideal. To make this work and appeal to tenants, you need to separate the two
0:15:46 > 0:15:50by adding some sort of rear access to the flat.
0:15:50 > 0:15:52That, in my opinion, is key.
0:15:53 > 0:15:57'It would be the only way to make this flat a viable option.
0:15:57 > 0:16:02'But building a rear access might mean adding an extension which would need planning permission.
0:16:02 > 0:16:04'Time-consuming and costly.
0:16:06 > 0:16:10'So with the chippy and flat guided at £140,000 to £150,000,
0:16:10 > 0:16:13'what does the local estate agent think the future is
0:16:13 > 0:16:15'for this high street property?'
0:16:16 > 0:16:19The property itself needs an awful lot of work,
0:16:19 > 0:16:24but there is the potential for splitting it into residential and commercial use.
0:16:24 > 0:16:30I would recommend splitting it into a two-bedroom apartment
0:16:30 > 0:16:34and keeping the fish and chip shop use on the ground floor.
0:16:34 > 0:16:40'But the estate agent feels getting an extension for the rear access to the flat could prove costly,
0:16:40 > 0:16:44'and even when renovated, the returns could be limited.'
0:16:44 > 0:16:49A two-bedroom flat above a shop at the moment, especially a hot food shop,
0:16:49 > 0:16:52the mortgage companies really don't like that very much
0:16:52 > 0:16:55so I think it would be difficult to sell.
0:16:55 > 0:17:00But if it were to be sold, I would anticipate a figure of around £100,000 to £120,000.
0:17:00 > 0:17:03'How would the rental figures look?'
0:17:03 > 0:17:09I feel the rental for a two-bedroom apartment in this area, given the close proximity to the station,
0:17:09 > 0:17:13would be in the region of £500 to £550 a month.
0:17:20 > 0:17:22Having looked at this property today,
0:17:22 > 0:17:26I think the key with this is to separate the flat from the business premises below.
0:17:26 > 0:17:30You can then at least let them separately, which spreads your risk a little bit.
0:17:30 > 0:17:36Let's face it, opening a new business in this tricky economic climate could be a bit of a gamble.
0:17:36 > 0:17:40So let's find out who fancied the fish and chip shop when we head to auction.
0:17:44 > 0:17:48Lot 82 is a town centre takeaway premises.
0:17:48 > 0:17:50I mean take away the food, not the premises.
0:17:50 > 0:17:54With residential accommodation above for improvement.
0:17:54 > 0:17:59Start me where you will on that one. Shall we say £140,000, bottom of the guide price to start me?
0:17:59 > 0:18:03140 can I say? 135, just start me where you will.
0:18:03 > 0:18:06135. 135, I'm obliged.
0:18:06 > 0:18:11135 I have. And 7 now do I see? 137 do I see?
0:18:11 > 0:18:14137. Just takes one to start. 137.
0:18:14 > 0:18:18140. 140. 142. 142. 142.
0:18:18 > 0:18:22And 5. 145. And 7. 147.
0:18:22 > 0:18:26At 145 on my right. 147 I'm looking for.
0:18:26 > 0:18:31If we're all done at £145,000. Two more anywhere? It's going to be sold.
0:18:31 > 0:18:35At 145,000 sitting down I have and I will sell for the first time.
0:18:35 > 0:18:39£145,000 for the second time. You're not going to get another opportunity.
0:18:39 > 0:18:42Are we all done at 145,000? Third and final time.
0:18:42 > 0:18:45- HAMMER BANGS - Just bought it, sir, 145.
0:18:45 > 0:18:51'That final and successful bid of 145,000 was made by Kent-based businessman David.
0:18:53 > 0:18:58'He's an experienced property developer but didn't come to view the fish and chip shop himself.
0:18:58 > 0:19:04'I met him to find out if he plans to reintroduce this chippy back into the food chain.'
0:19:04 > 0:19:06David, congratulations. Well done.
0:19:06 > 0:19:12- Did you plan on buying this on auction day? Was this the property you wanted?- Yes, this is the one.
0:19:12 > 0:19:16When I got the catalogue, I knew the existence of this property
0:19:16 > 0:19:18and it was a very busy fish and chips
0:19:18 > 0:19:24so I thought, "I like fish and chips so why not buy myself one fish and chips, as well?"
0:19:24 > 0:19:28You've bought yourself fish and chips! Do you remember this as a fish and chip shop?
0:19:28 > 0:19:33Yes, I remember it used to sell wet fish and fish and chips.
0:19:33 > 0:19:36I've never been myself but people mentioned it to me.
0:19:36 > 0:19:42So when it came on the market, I sent my wife and my marketing director.
0:19:42 > 0:19:47They came and had a look. But they haven't seen this area at all. They've just been in the front.
0:19:47 > 0:19:49They said, "Yes, there is a fish and chips."
0:19:49 > 0:19:54I said, "Did you try the fish and chips?" They said, "Yes." I said, "How is it?" "Good."
0:19:54 > 0:19:58- "Fair enough, let's go and buy it." - What about upstairs? Who viewed that?- Nobody.
0:19:58 > 0:20:03- So you didn't even see that.- No. - When you saw it for the first time, what did you think?
0:20:03 > 0:20:08At first I thought, "Fine, there's something I have to do with it."
0:20:08 > 0:20:12And most of my auction property I buy, I look at the location,
0:20:12 > 0:20:15see where it is, and just go and buy it,
0:20:15 > 0:20:19'David seems pretty unconcerned about the state of the flat.
0:20:19 > 0:20:23'He appears confident about turning the place around.
0:20:23 > 0:20:27'He's been buying and developing properties for over 25 years.'
0:20:28 > 0:20:31Tell me a little bit about yourself. What's your background?
0:20:31 > 0:20:36My background is, education-wise, I did my doctorate in organic chemistry.
0:20:36 > 0:20:41I worked in universities and pharmaceutical companies, everywhere.
0:20:41 > 0:20:46And it's no fun working for somebody else, so I thought I would work for myself.
0:20:46 > 0:20:53So I decided to buy hotels and restaurants and bars and things and I started in a small way.
0:20:53 > 0:20:58- And now I end up with the fish and chips.- So you own a lot of property, a lot of businesses.
0:20:58 > 0:21:02Not a lot, but in moderation. I have a couple of units.
0:21:02 > 0:21:05Some of them have been leased out, rented, collecting rent.
0:21:05 > 0:21:10What do you think you need to do in terms of this fish and chip shop to upgrade it?
0:21:10 > 0:21:14It's been left with the fryers, lots of equipment. Are you going to need to change anything?
0:21:14 > 0:21:21Yes, there's a lot of things which we are not going to do, like wet fish. We are not doing any wet fish.
0:21:21 > 0:21:26So things like walk-in freezers, they'll be taken out.
0:21:26 > 0:21:32All we'll be needing is a freezer, fat fryer and a potato peeler.
0:21:32 > 0:21:34- And a beautiful lady like you to fry it.- I can't fry fish.
0:21:34 > 0:21:38Don't even look at me. I'm not a good cook, I have to say,
0:21:38 > 0:21:44- even when it comes to fish and chips.- In that case, I'll find somebody else, some friend.
0:21:44 > 0:21:49'I'm relieved I managed to talk my way out of that. So, apart from finding a good cook,
0:21:49 > 0:21:51'that's the fish and chip shop settled.
0:21:51 > 0:21:57'As for that shell of a flat, David plans to put up a two-storey extension at the rear.
0:21:57 > 0:22:02'That would make the flat into a two-storey two-bed with a new kitchen, bathroom,
0:22:02 > 0:22:08'and more importantly, its own separate staircase at the back. So big plans indeed.'
0:22:09 > 0:22:14So David, what's your timescale for the work you need to do here?
0:22:14 > 0:22:20The timescale upstairs, the electrician, the plasterer, they'll be moving in next week,
0:22:20 > 0:22:23they'll be starting to work on it.
0:22:23 > 0:22:28With the extension, I think about two or three weeks, the plan will be submitted.
0:22:28 > 0:22:31The architect is working on it.
0:22:31 > 0:22:35They've done the design already. So it's a matter of submitting it
0:22:35 > 0:22:40and it all depends on the planning department. Sometimes they take eight weeks, 12 weeks, sometimes one year.
0:22:40 > 0:22:45'David doesn't seem to have wasted any time getting the plans drawn up.
0:22:45 > 0:22:51'And as for the fish and chip shop, we can expect to see a "frying tonight" sign up pretty soon.'
0:22:51 > 0:22:55How long do you think it will take you to get this business up and running?
0:22:55 > 0:22:58This business up and running within two weeks.
0:22:58 > 0:23:02Really? So you're going to crack on and get the fish and chip shop working?
0:23:02 > 0:23:09People have been contacted and we'll give it a try for two or three months to see how the market is.
0:23:09 > 0:23:12If not, we'll convert it into some other use.
0:23:12 > 0:23:15- You're going with the fish and chip shop for now.- To start with.
0:23:15 > 0:23:21David, what is your budget for the work here? How much are you going to spend in total on this unit?
0:23:21 > 0:23:27- I think about £25,000 I think this one will be up and running.- Is that including the extension on the back?
0:23:27 > 0:23:30Yes. Because it's not a massive extension
0:23:30 > 0:23:33and it is not going to be three floors, it'll be two floors.
0:23:33 > 0:23:37I can't make this place into a gold-plated Taj Mahal,
0:23:37 > 0:23:40but it'll be decent enough.
0:23:40 > 0:23:44- Lovely to meet you. - Nice meeting you, dear. - Congratulations.- Thank you.
0:23:44 > 0:23:49- It'll be exciting to see what you do and seeing it up and running. - Let's see how we do.
0:23:49 > 0:23:52- Maybe I'll try some of your chips. - Lovely. Thank you.
0:23:52 > 0:23:56Well, David is a man that likes his fish and chips. That's a good start.
0:23:56 > 0:23:59He's also got a lot of business experience.
0:23:59 > 0:24:03But will he get the planning permission to add that separate access?
0:24:03 > 0:24:07And will this shop be back in business selling fish and chips once again?
0:24:07 > 0:24:12Well, let's hope so. You can join me later in the programme to find out what happens.
0:24:13 > 0:24:18'Coming up, in Stockport you'll need to look beyond the mirrored wardrobes and colour schemes.'
0:24:19 > 0:24:22All in all, it's a good semi-detached.
0:24:22 > 0:24:28'We return to the Kent chippy where David's been battered by the planners.'
0:24:28 > 0:24:33We applied for the extension but they refused.
0:24:34 > 0:24:38'But first, it's back to Cornwall where Christine's had a learning experience.'
0:24:38 > 0:24:43I've loved it, I really have, and I've learnt so much.
0:24:47 > 0:24:50'When we were last in the Cornish village of Illogan,
0:24:50 > 0:24:57'Christine had paid £68,500 for this building plot with fabulous views.
0:24:57 > 0:25:00'It had planning permission to build a four-bedroom detached property.
0:25:00 > 0:25:03'Christine lives in Cornwall and is now retired.
0:25:03 > 0:25:07'Although she's done many jobs in the past, she now runs a bed and breakfast.
0:25:07 > 0:25:11'So what made her buy this building plot at the auction?'
0:25:12 > 0:25:16Was the fact that it already had planning permission granted a big draw?
0:25:16 > 0:25:22Yes, it was. Because I really wanted a simple build this time,
0:25:22 > 0:25:26for my first new build, a simple build. And I quite like the look of it.
0:25:26 > 0:25:32But it's a four-bedroom house but it's a small house and I'm going to reduce it to three bedrooms.
0:25:34 > 0:25:39'Well, 11 and a half months later, we met up again with Christine and her dog Pip.
0:25:42 > 0:25:47'And the land, with its glorious views of the Cornish countryside,
0:25:47 > 0:25:50'now has a stunning new detached house.
0:25:52 > 0:25:54'The property's timber-framed
0:25:54 > 0:26:00'but the stone detail and its size mean it blends really well with the neighbouring properties.
0:26:02 > 0:26:07'It wasn't a large plot, but the property has managed to retain a good sized rear garden.
0:26:07 > 0:26:13'It still needs to be turfed, but this terrace allows even better views across the countryside.
0:26:15 > 0:26:21'Downstairs, the laminate flooring and light walls make the house feel even bigger than it is,
0:26:21 > 0:26:25'and the front room and rear dining room are more than adequate.
0:26:26 > 0:26:29'Christine has opted for middle-of-the-range equipment,
0:26:29 > 0:26:34'but the kitchen is lovely and enjoys those fabulous views.
0:26:34 > 0:26:38'There's a separate utility room, plus a bathroom off the hall.
0:26:38 > 0:26:42'But it's the accommodation at the back that really sells this house.'
0:26:42 > 0:26:48This is the kitchen and I'm really pleased with how the kitchen's turned out.
0:26:48 > 0:26:52I've introduced colour into this kitchen. I've kept the units white
0:26:52 > 0:26:56but I've introduced duck-egg blue on the walls and on the tiles.
0:26:56 > 0:27:00And it's a kitchen that I would want to be in,
0:27:00 > 0:27:06particularly the views across over the farmland and the decking and the lawn.
0:27:06 > 0:27:08I love this part of the house.
0:27:08 > 0:27:12'Although it's almost a year since we first met Christine,
0:27:12 > 0:27:16'the building work didn't start for around four months.
0:27:16 > 0:27:20'During that time, she decided to take on more of the work herself.'
0:27:20 > 0:27:26I originally said that I was going to employ a firm of builders to do everything.
0:27:26 > 0:27:29The building regs took a little bit longer to get through
0:27:29 > 0:27:35and in that time, I decided to project-manage it myself. And that's what I've done.
0:27:36 > 0:27:41'Upstairs, the two back bedrooms are carpeted and have that wonderful view.
0:27:41 > 0:27:46'And the bathroom is tiled throughout and has stylish white fittings.
0:27:46 > 0:27:51'Although Christine changed upstairs from four to three bedrooms,
0:27:51 > 0:27:57'she didn't have to reapply for planning permission as it was only an internal wall that was moved.'
0:27:57 > 0:28:00I did make changes to this room from the original plans
0:28:00 > 0:28:05because it was two bedrooms, but I thought they would be too small,
0:28:05 > 0:28:08so I've just created one bedroom instead of two.
0:28:08 > 0:28:14So from a four-bed house I've created, I think, quite a nice size three-bedroom house.
0:28:14 > 0:28:20I'm pleased with this room because of the two windows. It's very light and it's big. I think it's lovely.
0:28:20 > 0:28:25'I wonder if it might have been even better to leave the two bedrooms at the front of the house
0:28:25 > 0:28:31'and make the larger master bedroom by combining the two rear bedrooms that benefit from that lovely view.
0:28:31 > 0:28:35'How much did Christine spend to get the house built and fitted out?
0:28:35 > 0:28:38'Did she keep to her £80,000 budget?'
0:28:38 > 0:28:45The budget, we've come in just under £75,000 with fees and everything. I'm really pleased about that.
0:28:46 > 0:28:50'Although Christine's renovated a couple of properties in the past,
0:28:50 > 0:28:54'this is her first new build and she project-managed it, as well.
0:28:54 > 0:28:56'Has she enjoyed the experience?'
0:28:56 > 0:29:00I've loved it. I really have. And I've learnt so much.
0:29:00 > 0:29:07And I've been lucky with the people, the team that I've got round me. My next one will be a doddle.
0:29:07 > 0:29:09My plan for this house is to sell it.
0:29:09 > 0:29:15I don't really want to rent it out. I think it's too nice.
0:29:15 > 0:29:17I need to sell it to do another one.
0:29:17 > 0:29:22'Time to see what two local property experts think of the new house
0:29:22 > 0:29:26'that has fitted in so well next to the adjoining properties,
0:29:26 > 0:29:29'taking advantage of that gorgeous view.'
0:29:29 > 0:29:32Last time we were here, it was a building plot.
0:29:32 > 0:29:35The transformation is amazing. It always amazes me
0:29:35 > 0:29:37what somebody can do with a plot.
0:29:37 > 0:29:40Squeezing on a three-bed detached house is really wonderful.
0:29:40 > 0:29:43The best feature of the property for me is the bathroom.
0:29:43 > 0:29:45It's presented to a high standard.
0:29:45 > 0:29:48I think to make it a three-bedroom is a better decision
0:29:48 > 0:29:53because the bedrooms would've been a lot smaller if you'd decided to go for four beds.
0:29:53 > 0:29:58What I was surprised about is the fact that they've been able to squeeze a utility room in
0:29:58 > 0:30:01on top of the large kitchen/breakfast area. That is a real plus point.
0:30:01 > 0:30:05I feel that this is the sort of house buyers are looking for.
0:30:05 > 0:30:10It's very modern, it will appeal to a lot of people because of the presentation and standard of work.
0:30:10 > 0:30:13Had it been a four-bedroom house, I think it would've struggled to sell
0:30:13 > 0:30:17because people would've said the bedrooms were too small.
0:30:17 > 0:30:21'But is Christine's first new build going to make her any profit?
0:30:21 > 0:30:26'She's spent 75 grand on top of the £68,500 she paid at auction,
0:30:26 > 0:30:30'making £143,500 in total.
0:30:30 > 0:30:32'So what could she sell it for?'
0:30:34 > 0:30:37There is a high demand for detached three-bedroom properties.
0:30:37 > 0:30:43It is a popular village, so I'd be looking to market the property in the region of £185,000.
0:30:43 > 0:30:49If I was to place the property on the open market, I would suggest an asking price £185,000.
0:30:49 > 0:30:52'Well, they agree on the valuation
0:30:52 > 0:30:58'and that would generate a gross profit, before the usual selling expenses, of £41,500.
0:30:58 > 0:31:02'What does Christine think of that?'
0:31:02 > 0:31:05Oh, wow! Brilliant!
0:31:05 > 0:31:09Absolutely brilliant! Oh, yeah! That's good.
0:31:09 > 0:31:12'What a fantastic result for Christine.
0:31:12 > 0:31:15'She's done really well here. Full credit to her.
0:31:15 > 0:31:19'This has been a very impressive new build project that she's managed.
0:31:21 > 0:31:26'So would she be tempted to try for another new build if the opportunity arose?
0:31:26 > 0:31:29'Has it all been worthwhile?'
0:31:29 > 0:31:33Oh, yes, I want to do it again. It's not just the money, actually.
0:31:33 > 0:31:36I've learnt such a lot. You can't really put a price on that.
0:31:36 > 0:31:40My new project, hopefully, will be another new build if I can get some land.
0:31:40 > 0:31:43Roll on the next one.
0:31:45 > 0:31:49I'm in Cheadle just outside Stockport,
0:31:49 > 0:31:53generally regarded as one of the nicer parts of Greater Manchester.
0:31:53 > 0:31:57And the property I'm here to see is in Cheadle Heath, not far away.
0:31:59 > 0:32:02'The area is full of local charm.
0:32:04 > 0:32:10'And this clock's unusual. It has letters rather than numbers, spelling that "time is flying".
0:32:12 > 0:32:16'Quite apt, really, as the planes from Manchester Airport are never far away
0:32:16 > 0:32:19'in the Cheadle area of Cheadle Heath.
0:32:20 > 0:32:25'The property I'm here to see is just a short distance from the centre of town.'
0:32:26 > 0:32:29And this is it, a nice little residential area,
0:32:29 > 0:32:33very popular with families cos there are some good local schools.
0:32:33 > 0:32:36Not as expensive as some of the surrounding villages, though.
0:32:36 > 0:32:41So you can get something like this. Three-bed semi-detached, had a guide price of 95,000 quid.
0:32:41 > 0:32:44'The outside of the property doesn't look bad.
0:32:44 > 0:32:49'There are signs of damp-proof treatments, so that's good.
0:32:49 > 0:32:53'The only problem is that the planes fly right over the street.'
0:32:53 > 0:32:55# Get yourself on my aeroplane
0:32:55 > 0:32:59# Cos it's been far too long since you went away
0:32:59 > 0:33:02So what have we got?
0:33:02 > 0:33:05Bit of damp to start off with. That's not too good.
0:33:05 > 0:33:08But fairly standard layout for a semi-detached. Stairs up to the bedrooms.
0:33:08 > 0:33:12Down a corridor. Over to the left you've got your living area at the front.
0:33:12 > 0:33:17Looks like an open fire, which is nice. But I don't know what's going on in that corner. Hm.
0:33:17 > 0:33:22I shall investigate that in a minute. That window doesn't look at all good.
0:33:22 > 0:33:27Kitchen there. Hm. Not exactly ideal. It does feel terribly cramped.
0:33:27 > 0:33:32I'm not sure what you do about that. Actually, I am sure. Get rid of this wall.
0:33:33 > 0:33:38I think it might be a supporting wall, in which case you're going to have to put an RSJ across the top.
0:33:38 > 0:33:43But by doing that, you'd open it out to create a really nice kitchen/living area,
0:33:43 > 0:33:45which is what you need. Another open fire.
0:33:45 > 0:33:48All in all, it's a good semi-detached.
0:33:49 > 0:33:56'There's also a conservatory off the dining room, but more of those planes.
0:33:56 > 0:34:00'Maybe triple-glazing should be the first thing on your to-do list here.
0:34:00 > 0:34:03'But more pressing are the buckets in the living room.'
0:34:03 > 0:34:08So, back to the front room and the damp issues around the bay window.
0:34:08 > 0:34:11As you can see, water pouring in. Not ideal.
0:34:11 > 0:34:16In fact, if you look up there, it's coming in from that flat roof area.
0:34:16 > 0:34:19The sad news is, it's just a simple case of lack of maintenance.
0:34:19 > 0:34:24It would've had some kind of covering on there that's broken down over time, water's poured in
0:34:24 > 0:34:28and who knows what kind of damage has been created from a lack of maintenance?
0:34:32 > 0:34:36'Upstairs in this house that went to auction guided at £95,000,
0:34:36 > 0:34:42'the front bedroom is a good size and you really only need to do a little decorating.
0:34:42 > 0:34:47'In the rear bedroom, lose the mirrored wardrobes and I reckon it's a good sized room.
0:34:47 > 0:34:55'Bedroom three is tiny, but fine for a child's bedroom or useful as a home office-cum-study.
0:34:55 > 0:34:58'The bathroom's spacious enough.
0:34:58 > 0:35:03'It's a little old-fashioned and in need of a bit of a spruce up, but it's not too bad.'
0:35:03 > 0:35:07At the rear of the property, you've got this pretty reasonable lean-to conservatory.
0:35:07 > 0:35:10It looks reasonably new, it's got double-glazing and it's not bad.
0:35:10 > 0:35:14I just wonder if there's anything more you could do. If you look here,
0:35:14 > 0:35:17some people have put a small extension on the back.
0:35:17 > 0:35:20You could probably do that within permitted development rules.
0:35:20 > 0:35:25You could even go two storeys, perhaps, but you'd need planning permission. Is it worth it?
0:35:25 > 0:35:28Look at the costs, what it would be worth after you'd done the work.
0:35:28 > 0:35:33If you're living in it, is it worth it for the space inside? Make your choice.
0:35:33 > 0:35:37'Well, development aside, there's quite a lot of potential for the garden.
0:35:37 > 0:35:42'Again, it just needs tidying up and a bit of TLC.
0:35:42 > 0:35:46'Time to hear the opinion of a local estate agent.
0:35:46 > 0:35:49'What does he think are the plus points of this property?'
0:35:49 > 0:35:54The positives of this property are firstly the location,
0:35:54 > 0:35:56it's very close to the M60 in terms of transport links,
0:35:56 > 0:36:00it's close to Stockport train station to get to Manchester.
0:36:00 > 0:36:03Very much the sort of property that someone would come to the area to buy.
0:36:03 > 0:36:07'So what about the aircraft? Could that be a deal-breaker?'
0:36:07 > 0:36:11Obviously, anywhere in South Manchester, you're in the flight path,
0:36:11 > 0:36:15but you may buy a million-pound property in Bramhall and have the same problem
0:36:15 > 0:36:18so I don't see that's specific to this property.
0:36:18 > 0:36:22'Providing the aircraft don't put prospective purchasers off,
0:36:22 > 0:36:26'what could the house be worth after a full refurbishment?
0:36:26 > 0:36:31I would expect to achieve, on the current market, between £145,000 and £150,000.
0:36:31 > 0:36:35'What rental income could the house generate?'
0:36:35 > 0:36:40In terms of rentals, I would expect to achieve £650 per calendar month for this property.
0:36:42 > 0:36:45Well, what is there not to like about this house?
0:36:45 > 0:36:50Yes, a few damp issues to sort out, and you may want to play around with the layout downstairs,
0:36:50 > 0:36:55but I think spend a little bit of money and what you've got is a great family home or a rental property.
0:36:55 > 0:36:58Let's see who fancied it when it went under the hammer.
0:36:58 > 0:37:02So we'll move on. Lot 43 is Cheadle Heath, Stockport.
0:37:02 > 0:37:06Nice little house, this one. Vacant three-bedroom semi.
0:37:08 > 0:37:1195,000 I'm looking for. At 95 am I bid?
0:37:11 > 0:37:1495 I have. 95,000 I have.
0:37:14 > 0:37:16At 95, then. At 97.
0:37:16 > 0:37:2097 bid. At 97. Do I see 99?
0:37:20 > 0:37:23New bid, 99. Do I see 101?
0:37:23 > 0:37:26101 do I see? 101? 102.
0:37:26 > 0:37:28At 102. 103.
0:37:28 > 0:37:31103. 104?
0:37:31 > 0:37:34104. 105. 105. At 105.
0:37:34 > 0:37:37Do I see 106? 106. 107?
0:37:37 > 0:37:39107. 107,000.
0:37:39 > 0:37:41108.
0:37:41 > 0:37:45109. At 109,000.
0:37:45 > 0:37:47109 and a half. 110.
0:37:47 > 0:37:49110. At 110,000. It's in the market.
0:37:49 > 0:37:52It's going to be sold at 110,000.
0:37:52 > 0:37:54110,000 then for the first time.
0:37:54 > 0:37:56At 110,000 for the second time and final time.
0:37:56 > 0:38:00- Are we all done at £110,000? - HAMMER BANGS
0:38:01 > 0:38:06'That successful bid of £110,000 was made by Colin.
0:38:06 > 0:38:11'He's a computer engineer who lives locally and owns a couple of rental properties.
0:38:11 > 0:38:16'I met up with him at his new purchase to hear about his plans for it.'
0:38:17 > 0:38:22- Colin, congratulations. - Thank you very much.- Tell me why you wanted to buy the house.
0:38:22 > 0:38:27I saw it advertised in the auction catalogue and decided this would be the one for me.
0:38:27 > 0:38:32- Right. So have you been looking for a while?- Yeah, I'd been to a couple of previous auctions
0:38:32 > 0:38:38and I'd bid on a couple of properties but not managed to be successful.
0:38:38 > 0:38:41And what are you buying it for?
0:38:41 > 0:38:46I'm hoping to renovate it and then sell it on.
0:38:46 > 0:38:50- But if I can't sell it on, I'll rent it off.- Is this something you've done before?
0:38:50 > 0:38:55I've got a couple of other rental properties in the area.
0:38:55 > 0:38:58'Oh, sounds like Colin's taking over the area.
0:38:58 > 0:39:04'He's already got two that he's renting out. So why another house and why this one?'
0:39:04 > 0:39:07Anything in particular motivating you to do this?
0:39:07 > 0:39:13Well, my wife keeps saying that she wants our house extended,
0:39:13 > 0:39:19so I'm hoping to do this, sell it on and hopefully make a bit of money to put into an extension.
0:39:19 > 0:39:24- Oh, great.- On our property.- So did you see the property beforehand?
0:39:24 > 0:39:28- I drove past it and looked at it. - Right.- That was about it.
0:39:28 > 0:39:31I got out of the car and looked at the front
0:39:31 > 0:39:36- and had a look down the side, but I didn't actually go inside the property.- Why?
0:39:36 > 0:39:42Cos I didn't think I'd be successful in getting it. I didn't really have the time to arrange a viewing.
0:39:42 > 0:39:48My solicitor told me off, as well, because she said I should've got the documents checked out
0:39:48 > 0:39:52- and in hindsight, I probably should've.- You didn't get the legal pack, either?
0:39:52 > 0:39:56- I looked at it but the solicitor didn't.- Oh, right.
0:39:56 > 0:39:59But I think I've got away with things.
0:39:59 > 0:40:03- But it's not a good idea. - No, definitely not.
0:40:04 > 0:40:09'He took a risk buying this property for £110,000 without viewing it first.
0:40:09 > 0:40:12'But I'm keen to discover what his plans for it are
0:40:12 > 0:40:15'and whether he intends to do the work himself.'
0:40:15 > 0:40:20Well, I will do parts of it, but the major construction,
0:40:20 > 0:40:25- I will get a builder in to do it, make sure it's done properly.- Right.
0:40:25 > 0:40:30- What do you class as major construction?- The major construction would be to knock down
0:40:30 > 0:40:36- the wall between the kitchen and the dining room to give a kitchen/dining area.- Great.
0:40:36 > 0:40:41- That'll be a really nice, big area. - Oh, yeah. It'll have to go through building regulations
0:40:41 > 0:40:46- cos it is a structural wall. - And then the rest of the house, what are your plans?
0:40:46 > 0:40:52Well, I want to replace the patio doors going into the conservatory,
0:40:52 > 0:40:57brick up the other door into the conservatory, replace it with a window,
0:40:57 > 0:40:59and have some sort of U-shaped kitchen in there,
0:40:59 > 0:41:02opening out onto the dining area.
0:41:04 > 0:41:06'He's also planning on getting the house rewired
0:41:06 > 0:41:12'and he'll have to deal with the damp issue in the front bay window of the living room.
0:41:13 > 0:41:17'Upstairs, Colin's planning a general tidy up.
0:41:17 > 0:41:22'He'll take out the built-in furniture and completely modernise the bathroom with a new suite.'
0:41:22 > 0:41:27- What do you do when you're not doing this?- I'm a computer engineer. - Right.
0:41:27 > 0:41:31- So this is a sideline or...? - It is a sideline, yeah.
0:41:31 > 0:41:36- How much is the work going to cost? - I estimate somewhere in the region of £12,000.
0:41:36 > 0:41:40- Right.- That'll give me plenty of budget to do the lot.
0:41:40 > 0:41:44- What kind of timescale? - Well, I did say six months
0:41:44 > 0:41:46cos I'm not in a rush to do it.
0:41:46 > 0:41:50I prefer to get it done properly rather than rush through it.
0:41:50 > 0:41:53So six months, but I hope to do it sooner.
0:41:53 > 0:41:57- No nasty surprises in store, then? - Erm, I'm sure there may be one or two,
0:41:57 > 0:42:01but I'll just have to deal with them as and when they come along.
0:42:01 > 0:42:04- Great. That's a very healthy attitude. Congratulations.- OK.
0:42:04 > 0:42:07- Good luck.- Thanks very much. - Look forward to seeing it.
0:42:10 > 0:42:13Well, Colin cool as a cucumber there,
0:42:13 > 0:42:17but I can't help wondering if he couldn't get this job finished a little bit sooner.
0:42:17 > 0:42:20In the property-developing business, time is money
0:42:20 > 0:42:24and if he could do it in three months as opposed to six months, his money would be in the bank
0:42:24 > 0:42:29or ready to spend on his extension that much quicker. Find out how he gets on later in the show.
0:42:32 > 0:42:36In the game of property investment, you want to make sure that you hold all the cards.
0:42:36 > 0:42:40So did our developers have a full house or a seven-high?
0:42:40 > 0:42:42Time for them to show us their hands.
0:42:42 > 0:42:46'Time to return to Strood near Rochester in Kent
0:42:46 > 0:42:50'where earlier in the programme, David had bought this fish and chip shop
0:42:50 > 0:42:54'with two floors above it for £145,000.'
0:42:54 > 0:42:56# Can I take your order, please?
0:42:56 > 0:43:01'He's an experienced property developers with a portfolio of hotels, restaurants and pubs.
0:43:01 > 0:43:04'But this was his first fish and chip shop.
0:43:04 > 0:43:08'The flat on the top two floors needed a full refurbishment
0:43:08 > 0:43:13'and David was about to submit a planning application to build a two-storey extension at the back.
0:43:13 > 0:43:17'That would give the flat a separate entrance and more accommodation,
0:43:17 > 0:43:21'but he planned to concentrate just on fish and chips in the shop.'
0:43:22 > 0:43:28We are not doing any wet fish, so things like walk-in freezers will be taken out.
0:43:28 > 0:43:30All we'll be needing is a freezer,
0:43:30 > 0:43:36a fat fryer and a potato peeler and a beautiful lady like you to fry it.
0:43:36 > 0:43:38I can't fry fish. Don't even look at me.
0:43:38 > 0:43:42I'm not a good cook, I have to say, even when it comes to fish and chips!
0:43:42 > 0:43:47# There's a guy works down the chip shop swears he's Elvis
0:43:47 > 0:43:51'Seven and a half months later we met up again with David.
0:43:53 > 0:43:56'You can't buy a bag of chips quite yet,
0:43:56 > 0:44:00'but the fish and chip shop has been retiled and the old counter's been removed.
0:44:02 > 0:44:08'The rear of the shop still needs to be cleared out, but David's builders have installed a new washroom.
0:44:09 > 0:44:12'But the battered accommodation above the fish shop
0:44:12 > 0:44:15'has now scaled new heights.
0:44:20 > 0:44:25'On the first floor, the room at the rear where the extractor fan from the chip shop was
0:44:25 > 0:44:27'has now been transformed into a kitchen.
0:44:27 > 0:44:31'The only extractor now is above the new hob.
0:44:32 > 0:44:36'There were no ceilings or walls in much of the flat but that's all changed.
0:44:36 > 0:44:40'The living room on the first floor has been carpeted.
0:44:40 > 0:44:44'It's a shame the old fireplace remains with those missing tiles, though.
0:44:46 > 0:44:52'A bathroom's gone in with a basic white suite and coordinated wall and floor tiles.
0:44:53 > 0:44:58'And in the new kitchen, the extractor's been replaced by a boiler, as David explains.'
0:44:58 > 0:45:04This kitchen is completely new. It was an empty shell.
0:45:04 > 0:45:11The extractor fan used to go through this room and it used to go through that section going all the way up.
0:45:11 > 0:45:15So from downstairs, we have diverted it and joined it to the back
0:45:15 > 0:45:19so that this can be converted into a kitchen. It roughly cost me about £3,000.
0:45:21 > 0:45:28'Up on the second floor, the work's continued with two bedrooms, one at the rear
0:45:28 > 0:45:32'and one at the front, overlooking the high street.
0:45:32 > 0:45:35'What happened to that planned extension at the rear?'
0:45:35 > 0:45:39We applied for the extension but they refused.
0:45:39 > 0:45:45'So permission was refused as the planner felt a two-storey extension would be too high.
0:45:45 > 0:45:48'It means access to the flat is still through the shop.
0:45:48 > 0:45:52'What's David's plan now for the accommodation and the chippy?'
0:45:52 > 0:45:58Now the whole building will be rented or leased off, given to a family-run fish and chips.
0:45:58 > 0:46:02So they'll have that accommodation upstairs and the business downstairs.
0:46:03 > 0:46:06'It might end up being the best solution.
0:46:06 > 0:46:10'Flats above fast-food restaurants are notoriously hard to rent out
0:46:10 > 0:46:14'as the noise and the smells understandably put many tenants off.
0:46:15 > 0:46:19'Down on the ground floor, the fish and chip shop has been refurbished
0:46:19 > 0:46:23'but the "plaice" hasn't lost all its "sole".'
0:46:23 > 0:46:29This was more or less running as a wet fish with very little fish and chips.
0:46:29 > 0:46:33And there was a massive counter all over here selling wet fish,
0:46:33 > 0:46:36so we had to get rid of all of that. The floor was in a bad condition
0:46:36 > 0:46:42and the wall was in a bad condition, so we completely gutted it out and refitted it with a counter,
0:46:42 > 0:46:45new lighting, new ceiling, new camera,
0:46:45 > 0:46:48smoke detectors, emergency lighting.
0:46:48 > 0:46:52To do this shop as it is now was about £10,000.
0:46:55 > 0:47:00'How much has the work cost? Originally, David had set a budget of £25,000.'
0:47:02 > 0:47:06Roughly, in total, it's come to round about £18,000,
0:47:06 > 0:47:08including the kitchen, new bathroom,
0:47:08 > 0:47:13new extractor system, electrics, central heating, comes to about £18,000.
0:47:14 > 0:47:18'David reckons the chippy should be open in about a month.
0:47:18 > 0:47:22'So has he had much interest from prospective tenants in the shop and flat?'
0:47:23 > 0:47:26There are quite a few people that are looking at it
0:47:26 > 0:47:30and they are just now looking for new cookers.
0:47:30 > 0:47:35When that is replaced and the sign, we will get them over.
0:47:36 > 0:47:39'Time to hear what two local property experts think of
0:47:39 > 0:47:43'the prospects for the fish and chip shop and its accommodation.'
0:47:43 > 0:47:47My first impression is it's had a basic refit.
0:47:47 > 0:47:50It does look a lot better than the first time I saw it,
0:47:50 > 0:47:52but it is adequate for its needs.
0:47:52 > 0:47:55In terms of this use as a fish and chip shop,
0:47:55 > 0:47:57I think it's about right. I do know the area
0:47:57 > 0:48:03and there isn't a traditional fish and chip shop around so it will have a good place in the high street.
0:48:03 > 0:48:06'That's something you definitely want with your chips.'
0:48:06 > 0:48:09The living space is quite spacious
0:48:09 > 0:48:12with the two bedrooms, separate lounge, kitchen.
0:48:12 > 0:48:16The refit has been done, I'd say, to a basic standard.
0:48:16 > 0:48:20I feel that there wouldn't be a great deal of increase in the value
0:48:20 > 0:48:23if it had separate accommodation.
0:48:23 > 0:48:29It's above a fish and chip shop. It would be difficult to sell or let.
0:48:29 > 0:48:32'What rental income could the shop and flat earn?'
0:48:33 > 0:48:38If you were letting the whole premises with the accommodation and the shop,
0:48:38 > 0:48:42you would be looking at a rental of approximately £15,000 per annum.
0:48:42 > 0:48:47I think the rental achievable as a single unit would be something in the region of £15,000 per annum.
0:48:47 > 0:48:53'Does David expect to get that level of income from the tenants he's got lined up?'
0:48:53 > 0:48:57No, I think it'll be about 20, 25.
0:48:57 > 0:49:00'And what's the sale valuation for this property
0:49:00 > 0:49:06'that David paid £145,000 for at auction and spent £18,000 on?
0:49:06 > 0:49:09'Will it be more than 163 grand?'
0:49:09 > 0:49:12If I were to put the whole property up for sale today,
0:49:12 > 0:49:18I would expect it to achieve something in the region of £185,000 to £200,000.
0:49:18 > 0:49:23If we were marketing the property today, with the accommodation and the fish and chip shop,
0:49:23 > 0:49:27I feel it would be in the region of £220,000.
0:49:28 > 0:49:33'That valuation range of between £185,000 and £220,000
0:49:33 > 0:49:39'would give David a gross profit of £22,000 to £57,000.
0:49:39 > 0:49:41'So might he be tempted to sell?'
0:49:41 > 0:49:46I think £200,000 to £220,000 is the right market price.
0:49:46 > 0:49:48I might let it go at that.
0:49:51 > 0:49:55'Back now to Cheadle Heath where this three-bedroom semi
0:49:55 > 0:49:58'was bought for £110,000 by Colin,
0:49:58 > 0:50:01'a computer engineer who lives locally.
0:50:02 > 0:50:04'The place wasn't in too bad a state,
0:50:04 > 0:50:09'but there was a leak in the living room that was going to need attention.
0:50:09 > 0:50:13'Colin owns two other properties locally which he rents out
0:50:13 > 0:50:16'but his plan for this house was to do it up and sell on.'
0:50:18 > 0:50:24- Anything in particular motivating you to do this? - Well, my wife keeps saying
0:50:24 > 0:50:28that she wants our house extended, so I'm hoping to do this, sell it on
0:50:28 > 0:50:32and hopefully make a bit of money to put into an extension.
0:50:32 > 0:50:35'Well, five and a half months have passed
0:50:35 > 0:50:39'and we met up with Colin and his wife June to see what they've achieved.
0:50:44 > 0:50:48'There's still no grass at the front, but the slabs have scrubbed up well.
0:50:48 > 0:50:55'Inside, the hall feels really light thanks to the gloss and neutral emulsion.
0:50:55 > 0:50:58'The front living room has lost the buckets.
0:50:58 > 0:51:05'That's a good sign as it means the leaking bay window's been fixed and the room's ready for carpeting.
0:51:06 > 0:51:11'The door from the conservatory into the kitchen has been replaced with a window
0:51:11 > 0:51:13'and a new door now leads into the dining room.
0:51:16 > 0:51:19'The narrow galley-style kitchen has been refitted.
0:51:19 > 0:51:25'But, as Colin explains, there have been structural layout changes, as well.'
0:51:25 > 0:51:28I've created a doorway which leads into the kitchen
0:51:28 > 0:51:32and moved the old doorway from here to here
0:51:32 > 0:51:35which enabled you to open the door fully into the kitchen.
0:51:35 > 0:51:39I've replaced the radiator, cos the old radiator
0:51:39 > 0:51:42encroached upon the kitchen area,
0:51:42 > 0:51:48which gives you more of an open-plan sort of kitchen/dining area.
0:51:49 > 0:51:53'The house has been rewired and replastered throughout.
0:51:53 > 0:51:56'Upstairs, the gloss paint continues
0:51:56 > 0:51:59'and the landing, like the hall, feels very bright.
0:52:00 > 0:52:04'The suite in the bathroom at the front of the property has been replaced
0:52:04 > 0:52:07'and a shower's been added with a tiled surround.
0:52:08 > 0:52:12'The three bedrooms also benefit from the choice of wall colours.
0:52:12 > 0:52:18'The original window remains in the master bedroom at the front of the house.
0:52:19 > 0:52:23'But the two rear bedrooms now have replacement windows.
0:52:29 > 0:52:32'New supporting lintels have been added, as well,
0:52:32 > 0:52:37'Colin specifically bought the house, like his other two rental properties, close to where he lives
0:52:37 > 0:52:41'so it was easy for him to get there and do the work.
0:52:41 > 0:52:44'But has anyone else been helping him?'
0:52:44 > 0:52:48Obviously, we had an electrician in to do the rewire.
0:52:48 > 0:52:50I had a plasterer in to do the plastering.
0:52:50 > 0:52:54My wife helped me with various bits and pieces,
0:52:54 > 0:52:57a lot of tidying up, which I'm not the best at doing.
0:52:57 > 0:53:03I helped Colin with all the colours. I think it needs a lady's touch at the end.
0:53:03 > 0:53:06Keep it very neutral. We get on quite well.
0:53:06 > 0:53:09I just get on with it. I get told what to do
0:53:09 > 0:53:15and I just helped clean up, cos Colin's not very good at that, so I do quite a lot of the dirty work.
0:53:17 > 0:53:24The garden was overgrown, so I've stripped it back and jet-washed the patio area and the walls
0:53:24 > 0:53:29and removed the old shed and replaced some fence panels at the rear.
0:53:29 > 0:53:33'The windows at the front remain but the guttering has been replaced.
0:53:33 > 0:53:38'And curing the problem of the leak above the window wasn't too tricky.'
0:53:38 > 0:53:44There was an issue with a leak on the bay window roof, which was resolved by unblocking the outlet pipe.
0:53:44 > 0:53:50'A simple fix to something that had caused a lot of damp inside.
0:53:50 > 0:53:52'My advice is always keep gutters clear
0:53:52 > 0:53:56'as it stops them overflowing and causing all sorts of problems.
0:53:56 > 0:54:01'How much has Colin had to spend here on top of the £110,000 he paid at the auction?'
0:54:01 > 0:54:04My initial budget was £12,000.
0:54:04 > 0:54:08However, this has increased slightly to £13,500,
0:54:08 > 0:54:14probably due to more plasterwork and little bits and bobs that you don't foresee,
0:54:14 > 0:54:18like light fittings, door handles and things like that.
0:54:18 > 0:54:22We are hoping to sell the property so I can have my own house extended.
0:54:22 > 0:54:26I've been waiting for nine years, so we might get there in the end.
0:54:27 > 0:54:30'Time to hear what two local property experts will think
0:54:30 > 0:54:32'of the refurbished property. Colin hopes to sell it
0:54:32 > 0:54:36'and generate enough money to do the work on his own house.'
0:54:36 > 0:54:40I think it's a nice property. I think the refurb's been done well.
0:54:40 > 0:54:42I think it's a nice style of house in a nice location.
0:54:42 > 0:54:46The level of finish is high, it's good, it's been nicely done,
0:54:46 > 0:54:51modern bathroom, modern kitchen, plastered walls, neutral decor.
0:54:51 > 0:54:55They've opened up a doorway between the kitchen and the dining room.
0:54:55 > 0:54:59The general standard of the finish is quite high in the kitchen and bathroom
0:54:59 > 0:55:04- and they've done a great job on the garden.- The garden I feel, for a family garden,
0:55:04 > 0:55:08I would've liked to have seen it grassed, but people can change that.
0:55:08 > 0:55:11'What's the property now worth?
0:55:11 > 0:55:14'Remember, Colin paid 110 grand at the auction
0:55:14 > 0:55:21'and has spent £13,500, making a total outlay of £123,500.
0:55:21 > 0:55:23'So is there any profit?'
0:55:24 > 0:55:28I would put this property on the market today for £145,000.
0:55:28 > 0:55:33We would put this on the market somewhere between £140,000 and £145,000.
0:55:33 > 0:55:37'That valuation range, from £140,000 to £145,000,
0:55:37 > 0:55:44'would give Colin and June a gross profit of between £16,500 and £21,500.
0:55:44 > 0:55:47'Is that what they were hoping for?'
0:55:47 > 0:55:51The valuations of 140 to 145,
0:55:51 > 0:55:53probably not quite what I expected.
0:55:53 > 0:55:56Probably wanted a bit more than that to sell it.
0:55:56 > 0:55:59If we can't achieve what I want to achieve,
0:55:59 > 0:56:03we'll have to put it up for rent and take it from there.
0:56:03 > 0:56:09If they were looking to rent the property, we would rent this for around £625 per calendar month.
0:56:09 > 0:56:12We would rent this property at £650 per calendar month.
0:56:12 > 0:56:16625 to 650 is in line with expectations.
0:56:16 > 0:56:21I've got other rental properties in the area and that's similar to what I'm getting for them.
0:56:21 > 0:56:25So if we have to rent it, I'd be very happy with those figures.
0:56:25 > 0:56:30'Well, Colin might be, but June ideally would like to sell and use the profit toward their house.
0:56:30 > 0:56:35'But she might have to wait a little longer for the extension after all.'
0:56:35 > 0:56:40If we don't sell it, we'll rent it out. I'll have to just wait another couple of years.
0:56:40 > 0:56:43I've only waited nine years, so a couple of years won't be too bad.
0:56:43 > 0:56:46If the house still holds together!
0:56:49 > 0:56:51That's all the auction action for today.
0:56:51 > 0:56:55Join us next time for more budding bidders on Homes Under The Hammer.
0:56:55 > 0:56:57- We'll see you then. - Goodbye.- Goodbye.
0:57:00 > 0:57:04Subtitles by Red Bee Media Ltd
0:57:04 > 0:57:08E-mail subtitling@bbc.co.uk