Episode 41 Homes Under the Hammer


Episode 41

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Hello. Buying property via the traditional means

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can often involve getting caught in a chain which means lengthy delays.

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If you buy at auction, you get a very quick result.

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The property could be yours in a matter of weeks.

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We have three properties on today's show to whet your appetite.

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Most properties need some money and time spent on them before you can live in them.

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Renovating means you can add value, which is always the ideal.

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So which properties had the magic wand waved over them on today's show?

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'The value of this Cornish building plot depends on one important factor.'

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Without planning permission, this plot of land would probably be worth just a few thousand quid.

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'In Kent, there's a chip shop with a flat that went to auction,

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'both in need of attention.'

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But saying that, there's quite a bit of character to the building.

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'And in Stockport, there could be a problem with the tiny kitchen in this house.'

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I'm not sure what you do about that. Actually, I am sure. Get rid of this wall.

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'All these properties went to auction and we'll find out who bought them

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-'and what they paid when they went under the hammer.'

-Just bought it, sir.

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This is Portreath in Cornwall.

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Apart from being a beautiful place, it holds a key place in Cornish industrial history.

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Copper ore would be mined here and sent to Swansea for smelting

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and the ships would return with Welsh coal which would power the engines in the mines in Cornwall.

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Let's hope the property I'm here to see can create such a virtuous circle.

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'It's certainly a glorious location,

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'but does the lot I'm here to see do justice to its surroundings?'

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The lot went to the auction with a guide price of £60,000 to £70,000.

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Given that the average house round here costs about £170,000,

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is it going to be a complete wreck, something that needs total renovation?

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Actually, you know what? No.

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It's a plot of land.

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'And it's land with a beautiful backdrop, just look at those views to the side.

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'But it's not just the vista that I'm excited about.

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'This land comes with that all-important planning permission to erect a four-bedroom house.'

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Without planning permission, this plot of land would probably be worth just a few thousand quid.

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But with planning permission, it's worth that guide price of 60,000 and 70,000 quid.

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So, what are the plans that have been passed? It's for a four-bedroom detached property.

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Fairly simple, I have to say, but on the other hand, fits in very well with what's around here

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and that certainly makes a lot of sense. Front elevations, rear elevations here.

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Making the most of the plot, pretty much filling it side to side.

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In terms of the internal layout,

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lounge at the front, downstairs WC which is nice, a utility

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and a large kitchen with patio doors, making the most of the view out the back. That's downstairs.

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Then go upstairs and they've managed to cram in four bedrooms and a bathroom.

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I am a bit concerned that some of the bedrooms, especially bedroom four, are very small.

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But not bad and, most importantly, they're passed. You don't have to worry about it.

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'So, whoever bought this plot of land could come in and start work straight away if they wanted.

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'Another great bonus is that there's even a dropped kerb,

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'making it easier to access the plot.

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'This also saves you the hassle and expense of having to contact the Highways Agency for permission.'

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# Let's build a house where we can stay

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'Will a local property expert share my enthusiasm for this auction lot

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'that went under the hammer guided at £60,000 to £70,000,

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'some land, a view, plus that tempting planning permission?'

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Interesting plot of land. Quite exciting.

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Good plans. Accommodation is quite spacious.

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The layout looks good, particularly on the ground floor.

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However, on the first floor there are four bedrooms, which I think may be overkill for the square footage.

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I believe the purchaser may consider reducing the number of bedrooms on the first floor from four to three

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which would mean it would be a much more spacious family environment and more appealing to the market.

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'Once the house has been built as a three or four-bedroom property,

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'how much rental income could an investor achieve by letting it out?'

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A three to four-bedroom house would fetch somewhere in the region of £750 per calendar month.

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'If the plans were followed exactly and a four-bedroom house built,

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'how much could the property be worth on the market?'

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Typically, a four-bedroom detached house in this sort of location

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could fetch somewhere between £180,000 and £195,000, depending on the specification.

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'An impressive end figure for the house.

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'Whoever bought it at auction will have their auction cost plus the expense of the build

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'to factor in before any profit can be made.'

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So, a nice enough building plot. Great location, right on the edge of the village, fairly flat

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and it does have that all-important planning permission.

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

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Lot three. So it's consent for a four-bedroom detached house,

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garden, off-road parking.

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So, development site with the planning consent, four-bed house.

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60,000 kick me off. At 60.

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Tell you what, I'll ask 50... Oh, choice of two.

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50. 52. 54.

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56. 58. At 58.

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At 58. 60. At 60.

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A half? 60. A half. 60 and a half.

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61. 61.

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And a half. Bit of a battle here. 62.

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62. Half. 63.

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63 and a half.

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The front now says 64. 64 and a half.

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64 and a half. 65. 65.

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And a half.

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65 and a half. 66.

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And a half. 67.

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Both of you at the same time. 67 and a half. And 68.

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68 is front, not back. At 68.

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At 68. And 500. At 68 and a half.

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At 68 and a half left. You're both out.

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At 68 and a half, the lady's here. At 68 and a half once.

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At 68 and a half twice.

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At 68 and a half, all done, the young lady has it. Here we go.

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-At 68,500.

-HAMMER BANGS

-Madam, yours, congratulations.

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'That final bid of £68,500 came from Christine.

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'She's originally from the Midlands, but moved down to Cornwall in 2004.

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'She bought a cottage which she renovated and turned into a successful bed and breakfast.

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'She's brought her dog Pip along to have a look, too.

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'I wouldn't get too used to it though, Pip.

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'With any luck, there'll soon be a house standing on this strip of land.'

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-Christine, lovely to meet you.

-Lovely to meet you, as well, Martin.

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-Congratulations.

-Thank you.

-Tell me why you wanted to buy this bit of land.

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Well, it's a project that I've been thinking of doing for 12 months

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and I've just got to do it now.

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It came up for auction and I thought, "This is it, this is the one I want."

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What specifically were you looking for?

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Well, it's a new build and there's planning permission already granted for it,

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which cuts a lot of the trouble out.

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And I just want to make a house and sell it.

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Right. So what inspired you to do this? Is it something you've always wanted to do or is it your job?

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No, it isn't my job. I've renovated two houses,

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a little bungalow and the house I'm in now in Cornwall,

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-and I just like the idea of it all coming together.

-Right.

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Big step to build your own place, though. It's a bit of a leap.

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-I think this'll be easy because I'm going to get a firm of builders to do this one.

-Right.

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-You don't have to do the work.

-Yeah.

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'Employing a builder to manage the whole process does make sense for Christine

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'or any developer unless they've got experience of similar projects.

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'Building a house from scratch is rather different from managing an extension to an existing property.'

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So why this plot and why here?

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Well, it was up for auction. There was another one I was interested in

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but it was pulled out of the sale before the day.

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But this village is lovely. It's a nice village.

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It's not too far from the coast. It's got a lovely feel to it.

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-Did you know this village before you saw the plot?

-No.

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I've got a friend who lives in the next village down, but I'd never been through here before.

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So was the fact that it had planning permission already granted a big draw?

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Yes, it was. Because I really wanted a simple build this time,

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for my first new build, a simple build.

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And I quite liked the look of it. But it's a four-bedroom house but it's a small house

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and I'm going to reduce it to three bedrooms.

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'Providing Christine doesn't change the exterior appearance of the house,

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'hopefully she won't have to re-submit the plans for approval.

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'I agree that three larger bedrooms would be better than four smaller ones.

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'So is she ready to start?'

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-Have you sourced local builders yet?

-I will want local builders but I haven't sorted anyone out yet.

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I'm still talking to the architect and then we're going to get everything ready

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-to ask for tenders from builders.

-Great. How many tenders are you going to get?

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-Oh, at least three. Is that right?

-Yeah, absolutely! The more, the merrier!

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You'll be amazed at the variation.

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'I would always ask for references because if you're handing over the whole project,

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'you have to ensure the work's carried out at maximum speed.

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'Delays cost money and it'll be you that's paying.'

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In terms of the cost, do you have an idea of what it's going to cost?

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-Well, my budget is £80,000 to £85,000 for the build.

-OK.

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-So tight but not outrageous.

-Not outrageous.

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-And timescales for getting it all sorted?

-Ten months. I think I should do it for ten months.

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Right, OK. And then after that?

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I shall be looking for another one, I think.

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What do you think the biggest challenge facing you is?

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I can't see a problem with the build.

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It's selling it. I don't know what will be happening in ten months' time.

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I guess that's the biggest problem.

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If I can't sell, then I would rent it out for a while and keep it.

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But, of course, I wouldn't be able to do another project next year, so I really would like to sell.

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-Listen, good luck with it all. We really look forward to seeing how you get on.

-Thank you. Thank you.

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# Where we can stay, b-b-b-build

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# Add a new bit every day

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So, lots of challenges ahead for Christine

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as she enters into the world of her first new-build property development.

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She's got to find builders. Will she be able to stick to those budgets?

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You can find out how she gets on later in the show.

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'This is Strood, a Medway town in Kent, just across the river from Rochester.

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'Over a billion pounds of investment is planned for the area over the next 20 years.

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'And with excellent transport links to London,

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'this could be good news for anyone thinking of buying in the area.'

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The property I'm here to see today is right in the heart of Strood town centre.

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It's a mixed commercial/residential unit, it's got a shop on the ground floor and a flat above.

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As you can see, it's an old fish and chip shop. Looks a bit battered from the outside.

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But "cod" you make some money here? Better get my "skates" on

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and take a look around this "plaice"!

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Sorry, I couldn't resist the fish puns. I'm going in.

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'The shop's been a fish and chippy for many, many years.

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'In fact, it's been in the same family ownership since the 1920s.

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'Along with that flat spread over two floors,

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'it was guided at £140,000 to £150,000.

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'So is it worth its salt or as sour as vinegar?'

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Well, this is as you'd expect any chippy to be,

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apart from it doesn't smell as nice as a chippy when it's up and running.

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It's got a bit of a horrible stale smell in here.

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But it's spacious, you can see loads of the equipment has been left,

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you've got the till here, the counter, another till, there's the deep fat fryer there.

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You can also see there's quite a lot of space out the back there. So there is the potential to extend.

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I think this could be a fantastic business opportunity for somebody.

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You could come in here and almost set up straight away.

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'The shop floor stretches right back and includes the staff kitchen,

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'a preparation room complete with potato chipper and walk-in cold store for wet fish.'

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This ex-fish and chip shop has an A3 business rating, which is a hot food outlet,

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and it could easily be changed to A1 and A2 usage.

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So, for example, this could become a shop,

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it could become a hairdressers, drycleaners, an estate agent or even a bank.

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It could be an undertakers, a pet shop, a betting office.

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Do you know what? The options are almost endless.

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# There's a guy works down the chip shop swears he's Elvis

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# Just like you swore to me that you'd be true

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'Whether the chippy changes its use or not,

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'upstairs certainly needs attention.'

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OK, so we can't get too excited about the flat upstairs

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because when you look closely, you can see it's been absolutely ripped apart.

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Somebody must have been in here and just literally gutted it.

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The walls need plastering, there's no ceilings, you've got all the bare brickwork everywhere.

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But saying that, there's quite a bit of character to the building.

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Some of the rooms are quite quirky. I'm not quite sure about this lovely feature here.

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I think this is part of the extractor for the fish shop to get rid of all those horrible smells.

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So somebody would have to sort that out. That would have to go.

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But when you think the fish shop downstairs is ready to go, this flat is not.

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You need to spend a lot of time and money sorting this place out.

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'There are four other rooms, but all in a similar state, including the staff loo.

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'So there's some significant work to do here. But even if this flat was habitable,

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'you wouldn't be able to rent it out or sell it separately from the shop below.'

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The problem with this purchase is that there's no separate entrance to this flat up here.

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So you come straight down here and you walk into the back of the deep fat fryer in the shop.

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So that's not ideal. To make this work and appeal to tenants, you need to separate the two

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by adding some sort of rear access to the flat.

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That, in my opinion, is key.

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'It would be the only way to make this flat a viable option.

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'But building a rear access might mean adding an extension which would need planning permission.

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'Time-consuming and costly.

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'So with the chippy and flat guided at £140,000 to £150,000,

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'what does the local estate agent think the future is

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'for this high street property?'

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The property itself needs an awful lot of work,

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but there is the potential for splitting it into residential and commercial use.

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I would recommend splitting it into a two-bedroom apartment

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and keeping the fish and chip shop use on the ground floor.

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'But the estate agent feels getting an extension for the rear access to the flat could prove costly,

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'and even when renovated, the returns could be limited.'

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A two-bedroom flat above a shop at the moment, especially a hot food shop,

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the mortgage companies really don't like that very much

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so I think it would be difficult to sell.

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But if it were to be sold, I would anticipate a figure of around £100,000 to £120,000.

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'How would the rental figures look?'

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I feel the rental for a two-bedroom apartment in this area, given the close proximity to the station,

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would be in the region of £500 to £550 a month.

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Having looked at this property today,

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I think the key with this is to separate the flat from the business premises below.

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You can then at least let them separately, which spreads your risk a little bit.

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Let's face it, opening a new business in this tricky economic climate could be a bit of a gamble.

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So let's find out who fancied the fish and chip shop when we head to auction.

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Lot 82 is a town centre takeaway premises.

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I mean take away the food, not the premises.

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With residential accommodation above for improvement.

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Start me where you will on that one. Shall we say £140,000, bottom of the guide price to start me?

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140 can I say? 135, just start me where you will.

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135. 135, I'm obliged.

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135 I have. And 7 now do I see? 137 do I see?

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137. Just takes one to start. 137.

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140. 140. 142. 142. 142.

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And 5. 145. And 7. 147.

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At 145 on my right. 147 I'm looking for.

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If we're all done at £145,000. Two more anywhere? It's going to be sold.

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At 145,000 sitting down I have and I will sell for the first time.

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£145,000 for the second time. You're not going to get another opportunity.

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Are we all done at 145,000? Third and final time.

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-HAMMER BANGS

-Just bought it, sir, 145.

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'That final and successful bid of 145,000 was made by Kent-based businessman David.

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'He's an experienced property developer but didn't come to view the fish and chip shop himself.

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'I met him to find out if he plans to reintroduce this chippy back into the food chain.'

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David, congratulations. Well done.

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-Did you plan on buying this on auction day? Was this the property you wanted?

-Yes, this is the one.

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When I got the catalogue, I knew the existence of this property

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and it was a very busy fish and chips

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so I thought, "I like fish and chips so why not buy myself one fish and chips, as well?"

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You've bought yourself fish and chips! Do you remember this as a fish and chip shop?

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Yes, I remember it used to sell wet fish and fish and chips.

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I've never been myself but people mentioned it to me.

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So when it came on the market, I sent my wife and my marketing director.

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They came and had a look. But they haven't seen this area at all. They've just been in the front.

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They said, "Yes, there is a fish and chips."

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I said, "Did you try the fish and chips?" They said, "Yes." I said, "How is it?" "Good."

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-"Fair enough, let's go and buy it."

-What about upstairs? Who viewed that?

-Nobody.

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-So you didn't even see that.

-No.

-When you saw it for the first time, what did you think?

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At first I thought, "Fine, there's something I have to do with it."

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And most of my auction property I buy, I look at the location,

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see where it is, and just go and buy it,

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'David seems pretty unconcerned about the state of the flat.

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'He appears confident about turning the place around.

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'He's been buying and developing properties for over 25 years.'

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Tell me a little bit about yourself. What's your background?

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My background is, education-wise, I did my doctorate in organic chemistry.

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I worked in universities and pharmaceutical companies, everywhere.

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And it's no fun working for somebody else, so I thought I would work for myself.

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So I decided to buy hotels and restaurants and bars and things and I started in a small way.

0:20:460:20:53

-And now I end up with the fish and chips.

-So you own a lot of property, a lot of businesses.

0:20:530:20:58

Not a lot, but in moderation. I have a couple of units.

0:20:580:21:02

Some of them have been leased out, rented, collecting rent.

0:21:020:21:05

What do you think you need to do in terms of this fish and chip shop to upgrade it?

0:21:050:21:10

It's been left with the fryers, lots of equipment. Are you going to need to change anything?

0:21:100:21:14

Yes, there's a lot of things which we are not going to do, like wet fish. We are not doing any wet fish.

0:21:140:21:21

So things like walk-in freezers, they'll be taken out.

0:21:210:21:26

All we'll be needing is a freezer, fat fryer and a potato peeler.

0:21:260:21:32

-And a beautiful lady like you to fry it.

-I can't fry fish.

0:21:320:21:34

Don't even look at me. I'm not a good cook, I have to say,

0:21:340:21:38

-even when it comes to fish and chips.

-In that case, I'll find somebody else, some friend.

0:21:380:21:44

'I'm relieved I managed to talk my way out of that. So, apart from finding a good cook,

0:21:440:21:49

'that's the fish and chip shop settled.

0:21:490:21:51

'As for that shell of a flat, David plans to put up a two-storey extension at the rear.

0:21:510:21:57

'That would make the flat into a two-storey two-bed with a new kitchen, bathroom,

0:21:570:22:02

'and more importantly, its own separate staircase at the back. So big plans indeed.'

0:22:020:22:08

So David, what's your timescale for the work you need to do here?

0:22:090:22:14

The timescale upstairs, the electrician, the plasterer, they'll be moving in next week,

0:22:140:22:20

they'll be starting to work on it.

0:22:200:22:23

With the extension, I think about two or three weeks, the plan will be submitted.

0:22:230:22:28

The architect is working on it.

0:22:280:22:31

They've done the design already. So it's a matter of submitting it

0:22:310:22:35

and it all depends on the planning department. Sometimes they take eight weeks, 12 weeks, sometimes one year.

0:22:350:22:40

'David doesn't seem to have wasted any time getting the plans drawn up.

0:22:400:22:45

'And as for the fish and chip shop, we can expect to see a "frying tonight" sign up pretty soon.'

0:22:450:22:51

How long do you think it will take you to get this business up and running?

0:22:510:22:55

This business up and running within two weeks.

0:22:550:22:58

Really? So you're going to crack on and get the fish and chip shop working?

0:22:580:23:02

People have been contacted and we'll give it a try for two or three months to see how the market is.

0:23:020:23:09

If not, we'll convert it into some other use.

0:23:090:23:12

-You're going with the fish and chip shop for now.

-To start with.

0:23:120:23:15

David, what is your budget for the work here? How much are you going to spend in total on this unit?

0:23:150:23:21

-I think about £25,000 I think this one will be up and running.

-Is that including the extension on the back?

0:23:210:23:27

Yes. Because it's not a massive extension

0:23:270:23:30

and it is not going to be three floors, it'll be two floors.

0:23:300:23:33

I can't make this place into a gold-plated Taj Mahal,

0:23:330:23:37

but it'll be decent enough.

0:23:370:23:40

-Lovely to meet you.

-Nice meeting you, dear.

-Congratulations.

-Thank you.

0:23:400:23:44

-It'll be exciting to see what you do and seeing it up and running.

-Let's see how we do.

0:23:440:23:49

-Maybe I'll try some of your chips.

-Lovely. Thank you.

0:23:490:23:52

Well, David is a man that likes his fish and chips. That's a good start.

0:23:520:23:56

He's also got a lot of business experience.

0:23:560:23:59

But will he get the planning permission to add that separate access?

0:23:590:24:03

And will this shop be back in business selling fish and chips once again?

0:24:030:24:07

Well, let's hope so. You can join me later in the programme to find out what happens.

0:24:070:24:12

'Coming up, in Stockport you'll need to look beyond the mirrored wardrobes and colour schemes.'

0:24:130:24:18

All in all, it's a good semi-detached.

0:24:190:24:22

'We return to the Kent chippy where David's been battered by the planners.'

0:24:220:24:28

We applied for the extension but they refused.

0:24:280:24:33

'But first, it's back to Cornwall where Christine's had a learning experience.'

0:24:340:24:38

I've loved it, I really have, and I've learnt so much.

0:24:380:24:43

'When we were last in the Cornish village of Illogan,

0:24:470:24:50

'Christine had paid £68,500 for this building plot with fabulous views.

0:24:500:24:57

'It had planning permission to build a four-bedroom detached property.

0:24:570:25:00

'Christine lives in Cornwall and is now retired.

0:25:000:25:03

'Although she's done many jobs in the past, she now runs a bed and breakfast.

0:25:030:25:07

'So what made her buy this building plot at the auction?'

0:25:070:25:11

Was the fact that it already had planning permission granted a big draw?

0:25:120:25:16

Yes, it was. Because I really wanted a simple build this time,

0:25:160:25:22

for my first new build, a simple build. And I quite like the look of it.

0:25:220:25:26

But it's a four-bedroom house but it's a small house and I'm going to reduce it to three bedrooms.

0:25:260:25:32

'Well, 11 and a half months later, we met up again with Christine and her dog Pip.

0:25:340:25:39

'And the land, with its glorious views of the Cornish countryside,

0:25:420:25:47

'now has a stunning new detached house.

0:25:470:25:50

'The property's timber-framed

0:25:520:25:54

'but the stone detail and its size mean it blends really well with the neighbouring properties.

0:25:540:26:00

'It wasn't a large plot, but the property has managed to retain a good sized rear garden.

0:26:020:26:07

'It still needs to be turfed, but this terrace allows even better views across the countryside.

0:26:070:26:13

'Downstairs, the laminate flooring and light walls make the house feel even bigger than it is,

0:26:150:26:21

'and the front room and rear dining room are more than adequate.

0:26:210:26:25

'Christine has opted for middle-of-the-range equipment,

0:26:260:26:29

'but the kitchen is lovely and enjoys those fabulous views.

0:26:290:26:34

'There's a separate utility room, plus a bathroom off the hall.

0:26:340:26:38

'But it's the accommodation at the back that really sells this house.'

0:26:380:26:42

This is the kitchen and I'm really pleased with how the kitchen's turned out.

0:26:420:26:48

I've introduced colour into this kitchen. I've kept the units white

0:26:480:26:52

but I've introduced duck-egg blue on the walls and on the tiles.

0:26:520:26:56

And it's a kitchen that I would want to be in,

0:26:560:27:00

particularly the views across over the farmland and the decking and the lawn.

0:27:000:27:06

I love this part of the house.

0:27:060:27:08

'Although it's almost a year since we first met Christine,

0:27:080:27:12

'the building work didn't start for around four months.

0:27:120:27:16

'During that time, she decided to take on more of the work herself.'

0:27:160:27:20

I originally said that I was going to employ a firm of builders to do everything.

0:27:200:27:26

The building regs took a little bit longer to get through

0:27:260:27:29

and in that time, I decided to project-manage it myself. And that's what I've done.

0:27:290:27:35

'Upstairs, the two back bedrooms are carpeted and have that wonderful view.

0:27:360:27:41

'And the bathroom is tiled throughout and has stylish white fittings.

0:27:410:27:46

'Although Christine changed upstairs from four to three bedrooms,

0:27:460:27:51

'she didn't have to reapply for planning permission as it was only an internal wall that was moved.'

0:27:510:27:57

I did make changes to this room from the original plans

0:27:570:28:00

because it was two bedrooms, but I thought they would be too small,

0:28:000:28:05

so I've just created one bedroom instead of two.

0:28:050:28:08

So from a four-bed house I've created, I think, quite a nice size three-bedroom house.

0:28:080:28:14

I'm pleased with this room because of the two windows. It's very light and it's big. I think it's lovely.

0:28:140:28:20

'I wonder if it might have been even better to leave the two bedrooms at the front of the house

0:28:200:28:25

'and make the larger master bedroom by combining the two rear bedrooms that benefit from that lovely view.

0:28:250:28:31

'How much did Christine spend to get the house built and fitted out?

0:28:310:28:35

'Did she keep to her £80,000 budget?'

0:28:350:28:38

The budget, we've come in just under £75,000 with fees and everything. I'm really pleased about that.

0:28:380:28:45

'Although Christine's renovated a couple of properties in the past,

0:28:460:28:50

'this is her first new build and she project-managed it, as well.

0:28:500:28:54

'Has she enjoyed the experience?'

0:28:540:28:56

I've loved it. I really have. And I've learnt so much.

0:28:560:29:00

And I've been lucky with the people, the team that I've got round me. My next one will be a doddle.

0:29:000:29:07

My plan for this house is to sell it.

0:29:070:29:09

I don't really want to rent it out. I think it's too nice.

0:29:090:29:15

I need to sell it to do another one.

0:29:150:29:17

'Time to see what two local property experts think of the new house

0:29:170:29:22

'that has fitted in so well next to the adjoining properties,

0:29:220:29:26

'taking advantage of that gorgeous view.'

0:29:260:29:29

Last time we were here, it was a building plot.

0:29:290:29:32

The transformation is amazing. It always amazes me

0:29:320:29:35

what somebody can do with a plot.

0:29:350:29:37

Squeezing on a three-bed detached house is really wonderful.

0:29:370:29:40

The best feature of the property for me is the bathroom.

0:29:400:29:43

It's presented to a high standard.

0:29:430:29:45

I think to make it a three-bedroom is a better decision

0:29:450:29:48

because the bedrooms would've been a lot smaller if you'd decided to go for four beds.

0:29:480:29:53

What I was surprised about is the fact that they've been able to squeeze a utility room in

0:29:530:29:58

on top of the large kitchen/breakfast area. That is a real plus point.

0:29:580:30:01

I feel that this is the sort of house buyers are looking for.

0:30:010:30:05

It's very modern, it will appeal to a lot of people because of the presentation and standard of work.

0:30:050:30:10

Had it been a four-bedroom house, I think it would've struggled to sell

0:30:100:30:13

because people would've said the bedrooms were too small.

0:30:130:30:17

'But is Christine's first new build going to make her any profit?

0:30:170:30:21

'She's spent 75 grand on top of the £68,500 she paid at auction,

0:30:210:30:26

'making £143,500 in total.

0:30:260:30:30

'So what could she sell it for?'

0:30:300:30:32

There is a high demand for detached three-bedroom properties.

0:30:340:30:37

It is a popular village, so I'd be looking to market the property in the region of £185,000.

0:30:370:30:43

If I was to place the property on the open market, I would suggest an asking price £185,000.

0:30:430:30:49

'Well, they agree on the valuation

0:30:490:30:52

'and that would generate a gross profit, before the usual selling expenses, of £41,500.

0:30:520:30:58

'What does Christine think of that?'

0:30:580:31:02

Oh, wow! Brilliant!

0:31:020:31:05

Absolutely brilliant! Oh, yeah! That's good.

0:31:050:31:09

'What a fantastic result for Christine.

0:31:090:31:12

'She's done really well here. Full credit to her.

0:31:120:31:15

'This has been a very impressive new build project that she's managed.

0:31:150:31:19

'So would she be tempted to try for another new build if the opportunity arose?

0:31:210:31:26

'Has it all been worthwhile?'

0:31:260:31:29

Oh, yes, I want to do it again. It's not just the money, actually.

0:31:290:31:33

I've learnt such a lot. You can't really put a price on that.

0:31:330:31:36

My new project, hopefully, will be another new build if I can get some land.

0:31:360:31:40

Roll on the next one.

0:31:400:31:43

I'm in Cheadle just outside Stockport,

0:31:450:31:49

generally regarded as one of the nicer parts of Greater Manchester.

0:31:490:31:53

And the property I'm here to see is in Cheadle Heath, not far away.

0:31:530:31:57

'The area is full of local charm.

0:31:590:32:02

'And this clock's unusual. It has letters rather than numbers, spelling that "time is flying".

0:32:040:32:10

'Quite apt, really, as the planes from Manchester Airport are never far away

0:32:120:32:16

'in the Cheadle area of Cheadle Heath.

0:32:160:32:19

'The property I'm here to see is just a short distance from the centre of town.'

0:32:200:32:25

And this is it, a nice little residential area,

0:32:260:32:29

very popular with families cos there are some good local schools.

0:32:290:32:33

Not as expensive as some of the surrounding villages, though.

0:32:330:32:36

So you can get something like this. Three-bed semi-detached, had a guide price of 95,000 quid.

0:32:360:32:41

'The outside of the property doesn't look bad.

0:32:410:32:44

'There are signs of damp-proof treatments, so that's good.

0:32:440:32:49

'The only problem is that the planes fly right over the street.'

0:32:490:32:53

# Get yourself on my aeroplane

0:32:530:32:55

# Cos it's been far too long since you went away

0:32:550:32:59

So what have we got?

0:32:590:33:02

Bit of damp to start off with. That's not too good.

0:33:020:33:05

But fairly standard layout for a semi-detached. Stairs up to the bedrooms.

0:33:050:33:08

Down a corridor. Over to the left you've got your living area at the front.

0:33:080:33:12

Looks like an open fire, which is nice. But I don't know what's going on in that corner. Hm.

0:33:120:33:17

I shall investigate that in a minute. That window doesn't look at all good.

0:33:170:33:22

Kitchen there. Hm. Not exactly ideal. It does feel terribly cramped.

0:33:220:33:27

I'm not sure what you do about that. Actually, I am sure. Get rid of this wall.

0:33:270:33:32

I think it might be a supporting wall, in which case you're going to have to put an RSJ across the top.

0:33:330:33:38

But by doing that, you'd open it out to create a really nice kitchen/living area,

0:33:380:33:43

which is what you need. Another open fire.

0:33:430:33:45

All in all, it's a good semi-detached.

0:33:450:33:48

'There's also a conservatory off the dining room, but more of those planes.

0:33:490:33:56

'Maybe triple-glazing should be the first thing on your to-do list here.

0:33:560:34:00

'But more pressing are the buckets in the living room.'

0:34:000:34:03

So, back to the front room and the damp issues around the bay window.

0:34:030:34:08

As you can see, water pouring in. Not ideal.

0:34:080:34:11

In fact, if you look up there, it's coming in from that flat roof area.

0:34:110:34:16

The sad news is, it's just a simple case of lack of maintenance.

0:34:160:34:19

It would've had some kind of covering on there that's broken down over time, water's poured in

0:34:190:34:24

and who knows what kind of damage has been created from a lack of maintenance?

0:34:240:34:28

'Upstairs in this house that went to auction guided at £95,000,

0:34:320:34:36

'the front bedroom is a good size and you really only need to do a little decorating.

0:34:360:34:42

'In the rear bedroom, lose the mirrored wardrobes and I reckon it's a good sized room.

0:34:420:34:47

'Bedroom three is tiny, but fine for a child's bedroom or useful as a home office-cum-study.

0:34:470:34:55

'The bathroom's spacious enough.

0:34:550:34:58

'It's a little old-fashioned and in need of a bit of a spruce up, but it's not too bad.'

0:34:580:35:03

At the rear of the property, you've got this pretty reasonable lean-to conservatory.

0:35:030:35:07

It looks reasonably new, it's got double-glazing and it's not bad.

0:35:070:35:10

I just wonder if there's anything more you could do. If you look here,

0:35:100:35:14

some people have put a small extension on the back.

0:35:140:35:17

You could probably do that within permitted development rules.

0:35:170:35:20

You could even go two storeys, perhaps, but you'd need planning permission. Is it worth it?

0:35:200:35:25

Look at the costs, what it would be worth after you'd done the work.

0:35:250:35:28

If you're living in it, is it worth it for the space inside? Make your choice.

0:35:280:35:33

'Well, development aside, there's quite a lot of potential for the garden.

0:35:330:35:37

'Again, it just needs tidying up and a bit of TLC.

0:35:370:35:42

'Time to hear the opinion of a local estate agent.

0:35:420:35:46

'What does he think are the plus points of this property?'

0:35:460:35:49

The positives of this property are firstly the location,

0:35:490:35:54

it's very close to the M60 in terms of transport links,

0:35:540:35:56

it's close to Stockport train station to get to Manchester.

0:35:560:36:00

Very much the sort of property that someone would come to the area to buy.

0:36:000:36:03

'So what about the aircraft? Could that be a deal-breaker?'

0:36:030:36:07

Obviously, anywhere in South Manchester, you're in the flight path,

0:36:070:36:11

but you may buy a million-pound property in Bramhall and have the same problem

0:36:110:36:15

so I don't see that's specific to this property.

0:36:150:36:18

'Providing the aircraft don't put prospective purchasers off,

0:36:180:36:22

'what could the house be worth after a full refurbishment?

0:36:220:36:26

I would expect to achieve, on the current market, between £145,000 and £150,000.

0:36:260:36:31

'What rental income could the house generate?'

0:36:310:36:35

In terms of rentals, I would expect to achieve £650 per calendar month for this property.

0:36:350:36:40

Well, what is there not to like about this house?

0:36:420:36:45

Yes, a few damp issues to sort out, and you may want to play around with the layout downstairs,

0:36:450:36:50

but I think spend a little bit of money and what you've got is a great family home or a rental property.

0:36:500:36:55

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

0:36:550:36:58

So we'll move on. Lot 43 is Cheadle Heath, Stockport.

0:36:580:37:02

Nice little house, this one. Vacant three-bedroom semi.

0:37:020:37:06

95,000 I'm looking for. At 95 am I bid?

0:37:080:37:11

95 I have. 95,000 I have.

0:37:110:37:14

At 95, then. At 97.

0:37:140:37:16

97 bid. At 97. Do I see 99?

0:37:160:37:20

New bid, 99. Do I see 101?

0:37:200:37:23

101 do I see? 101? 102.

0:37:230:37:26

At 102. 103.

0:37:260:37:28

103. 104?

0:37:280:37:31

104. 105. 105. At 105.

0:37:310:37:34

Do I see 106? 106. 107?

0:37:340:37:37

107. 107,000.

0:37:370:37:39

108.

0:37:390:37:41

109. At 109,000.

0:37:410:37:45

109 and a half. 110.

0:37:450:37:47

110. At 110,000. It's in the market.

0:37:470:37:49

It's going to be sold at 110,000.

0:37:490:37:52

110,000 then for the first time.

0:37:520:37:54

At 110,000 for the second time and final time.

0:37:540:37:56

-Are we all done at £110,000?

-HAMMER BANGS

0:37:560:38:00

'That successful bid of £110,000 was made by Colin.

0:38:010:38:06

'He's a computer engineer who lives locally and owns a couple of rental properties.

0:38:060:38:11

'I met up with him at his new purchase to hear about his plans for it.'

0:38:110:38:16

-Colin, congratulations.

-Thank you very much.

-Tell me why you wanted to buy the house.

0:38:170:38:22

I saw it advertised in the auction catalogue and decided this would be the one for me.

0:38:220:38:27

-Right. So have you been looking for a while?

-Yeah, I'd been to a couple of previous auctions

0:38:270:38:32

and I'd bid on a couple of properties but not managed to be successful.

0:38:320:38:38

And what are you buying it for?

0:38:380:38:41

I'm hoping to renovate it and then sell it on.

0:38:410:38:46

-But if I can't sell it on, I'll rent it off.

-Is this something you've done before?

0:38:460:38:50

I've got a couple of other rental properties in the area.

0:38:500:38:55

'Oh, sounds like Colin's taking over the area.

0:38:550:38:58

'He's already got two that he's renting out. So why another house and why this one?'

0:38:580:39:04

Anything in particular motivating you to do this?

0:39:040:39:07

Well, my wife keeps saying that she wants our house extended,

0:39:070:39:13

so I'm hoping to do this, sell it on and hopefully make a bit of money to put into an extension.

0:39:130:39:19

-Oh, great.

-On our property.

-So did you see the property beforehand?

0:39:190:39:24

-I drove past it and looked at it.

-Right.

-That was about it.

0:39:240:39:28

I got out of the car and looked at the front

0:39:280:39:31

-and had a look down the side, but I didn't actually go inside the property.

-Why?

0:39:310:39:36

Cos I didn't think I'd be successful in getting it. I didn't really have the time to arrange a viewing.

0:39:360:39:42

My solicitor told me off, as well, because she said I should've got the documents checked out

0:39:420:39:48

-and in hindsight, I probably should've.

-You didn't get the legal pack, either?

0:39:480:39:52

-I looked at it but the solicitor didn't.

-Oh, right.

0:39:520:39:56

But I think I've got away with things.

0:39:560:39:59

-But it's not a good idea.

-No, definitely not.

0:39:590:40:03

'He took a risk buying this property for £110,000 without viewing it first.

0:40:040:40:09

'But I'm keen to discover what his plans for it are

0:40:090:40:12

'and whether he intends to do the work himself.'

0:40:120:40:15

Well, I will do parts of it, but the major construction,

0:40:150:40:20

-I will get a builder in to do it, make sure it's done properly.

-Right.

0:40:200:40:25

-What do you class as major construction?

-The major construction would be to knock down

0:40:250:40:30

-the wall between the kitchen and the dining room to give a kitchen/dining area.

-Great.

0:40:300:40:36

-That'll be a really nice, big area.

-Oh, yeah. It'll have to go through building regulations

0:40:360:40:41

-cos it is a structural wall.

-And then the rest of the house, what are your plans?

0:40:410:40:46

Well, I want to replace the patio doors going into the conservatory,

0:40:460:40:52

brick up the other door into the conservatory, replace it with a window,

0:40:520:40:57

and have some sort of U-shaped kitchen in there,

0:40:570:40:59

opening out onto the dining area.

0:40:590:41:02

'He's also planning on getting the house rewired

0:41:040:41:06

'and he'll have to deal with the damp issue in the front bay window of the living room.

0:41:060:41:12

'Upstairs, Colin's planning a general tidy up.

0:41:130:41:17

'He'll take out the built-in furniture and completely modernise the bathroom with a new suite.'

0:41:170:41:22

-What do you do when you're not doing this?

-I'm a computer engineer.

-Right.

0:41:220:41:27

-So this is a sideline or...?

-It is a sideline, yeah.

0:41:270:41:31

-How much is the work going to cost?

-I estimate somewhere in the region of £12,000.

0:41:310:41:36

-Right.

-That'll give me plenty of budget to do the lot.

0:41:360:41:40

-What kind of timescale?

-Well, I did say six months

0:41:400:41:44

cos I'm not in a rush to do it.

0:41:440:41:46

I prefer to get it done properly rather than rush through it.

0:41:460:41:50

So six months, but I hope to do it sooner.

0:41:500:41:53

-No nasty surprises in store, then?

-Erm, I'm sure there may be one or two,

0:41:530:41:57

but I'll just have to deal with them as and when they come along.

0:41:570:42:01

-Great. That's a very healthy attitude. Congratulations.

-OK.

0:42:010:42:04

-Good luck.

-Thanks very much.

-Look forward to seeing it.

0:42:040:42:07

Well, Colin cool as a cucumber there,

0:42:100:42:13

but I can't help wondering if he couldn't get this job finished a little bit sooner.

0:42:130:42:17

In the property-developing business, time is money

0:42:170:42:20

and if he could do it in three months as opposed to six months, his money would be in the bank

0:42:200:42:24

or ready to spend on his extension that much quicker. Find out how he gets on later in the show.

0:42:240:42:29

In the game of property investment, you want to make sure that you hold all the cards.

0:42:320:42:36

So did our developers have a full house or a seven-high?

0:42:360:42:40

Time for them to show us their hands.

0:42:400:42:42

'Time to return to Strood near Rochester in Kent

0:42:420:42:46

'where earlier in the programme, David had bought this fish and chip shop

0:42:460:42:50

'with two floors above it for £145,000.'

0:42:500:42:54

# Can I take your order, please?

0:42:540:42:56

'He's an experienced property developers with a portfolio of hotels, restaurants and pubs.

0:42:560:43:01

'But this was his first fish and chip shop.

0:43:010:43:04

'The flat on the top two floors needed a full refurbishment

0:43:040:43:08

'and David was about to submit a planning application to build a two-storey extension at the back.

0:43:080:43:13

'That would give the flat a separate entrance and more accommodation,

0:43:130:43:17

'but he planned to concentrate just on fish and chips in the shop.'

0:43:170:43:21

We are not doing any wet fish, so things like walk-in freezers will be taken out.

0:43:220:43:28

All we'll be needing is a freezer,

0:43:280:43:30

a fat fryer and a potato peeler and a beautiful lady like you to fry it.

0:43:300:43:36

I can't fry fish. Don't even look at me.

0:43:360:43:38

I'm not a good cook, I have to say, even when it comes to fish and chips!

0:43:380:43:42

# There's a guy works down the chip shop swears he's Elvis

0:43:420:43:47

'Seven and a half months later we met up again with David.

0:43:470:43:51

'You can't buy a bag of chips quite yet,

0:43:530:43:56

'but the fish and chip shop has been retiled and the old counter's been removed.

0:43:560:44:00

'The rear of the shop still needs to be cleared out, but David's builders have installed a new washroom.

0:44:020:44:08

'But the battered accommodation above the fish shop

0:44:090:44:12

'has now scaled new heights.

0:44:120:44:15

'On the first floor, the room at the rear where the extractor fan from the chip shop was

0:44:200:44:25

'has now been transformed into a kitchen.

0:44:250:44:27

'The only extractor now is above the new hob.

0:44:270:44:31

'There were no ceilings or walls in much of the flat but that's all changed.

0:44:320:44:36

'The living room on the first floor has been carpeted.

0:44:360:44:40

'It's a shame the old fireplace remains with those missing tiles, though.

0:44:400:44:44

'A bathroom's gone in with a basic white suite and coordinated wall and floor tiles.

0:44:460:44:52

'And in the new kitchen, the extractor's been replaced by a boiler, as David explains.'

0:44:530:44:58

This kitchen is completely new. It was an empty shell.

0:44:580:45:04

The extractor fan used to go through this room and it used to go through that section going all the way up.

0:45:040:45:11

So from downstairs, we have diverted it and joined it to the back

0:45:110:45:15

so that this can be converted into a kitchen. It roughly cost me about £3,000.

0:45:150:45:19

'Up on the second floor, the work's continued with two bedrooms, one at the rear

0:45:210:45:28

'and one at the front, overlooking the high street.

0:45:280:45:32

'What happened to that planned extension at the rear?'

0:45:320:45:35

We applied for the extension but they refused.

0:45:350:45:39

'So permission was refused as the planner felt a two-storey extension would be too high.

0:45:390:45:45

'It means access to the flat is still through the shop.

0:45:450:45:48

'What's David's plan now for the accommodation and the chippy?'

0:45:480:45:52

Now the whole building will be rented or leased off, given to a family-run fish and chips.

0:45:520:45:58

So they'll have that accommodation upstairs and the business downstairs.

0:45:580:46:02

'It might end up being the best solution.

0:46:030:46:06

'Flats above fast-food restaurants are notoriously hard to rent out

0:46:060:46:10

'as the noise and the smells understandably put many tenants off.

0:46:100:46:14

'Down on the ground floor, the fish and chip shop has been refurbished

0:46:150:46:19

'but the "plaice" hasn't lost all its "sole".'

0:46:190:46:23

This was more or less running as a wet fish with very little fish and chips.

0:46:230:46:29

And there was a massive counter all over here selling wet fish,

0:46:290:46:33

so we had to get rid of all of that. The floor was in a bad condition

0:46:330:46:36

and the wall was in a bad condition, so we completely gutted it out and refitted it with a counter,

0:46:360:46:42

new lighting, new ceiling, new camera,

0:46:420:46:45

smoke detectors, emergency lighting.

0:46:450:46:48

To do this shop as it is now was about £10,000.

0:46:480:46:52

'How much has the work cost? Originally, David had set a budget of £25,000.'

0:46:550:47:00

Roughly, in total, it's come to round about £18,000,

0:47:020:47:06

including the kitchen, new bathroom,

0:47:060:47:08

new extractor system, electrics, central heating, comes to about £18,000.

0:47:080:47:13

'David reckons the chippy should be open in about a month.

0:47:140:47:18

'So has he had much interest from prospective tenants in the shop and flat?'

0:47:180:47:22

There are quite a few people that are looking at it

0:47:230:47:26

and they are just now looking for new cookers.

0:47:260:47:30

When that is replaced and the sign, we will get them over.

0:47:300:47:35

'Time to hear what two local property experts think of

0:47:360:47:39

'the prospects for the fish and chip shop and its accommodation.'

0:47:390:47:43

My first impression is it's had a basic refit.

0:47:430:47:47

It does look a lot better than the first time I saw it,

0:47:470:47:50

but it is adequate for its needs.

0:47:500:47:52

In terms of this use as a fish and chip shop,

0:47:520:47:55

I think it's about right. I do know the area

0:47:550:47:57

and there isn't a traditional fish and chip shop around so it will have a good place in the high street.

0:47:570:48:03

'That's something you definitely want with your chips.'

0:48:030:48:06

The living space is quite spacious

0:48:060:48:09

with the two bedrooms, separate lounge, kitchen.

0:48:090:48:12

The refit has been done, I'd say, to a basic standard.

0:48:120:48:16

I feel that there wouldn't be a great deal of increase in the value

0:48:160:48:20

if it had separate accommodation.

0:48:200:48:23

It's above a fish and chip shop. It would be difficult to sell or let.

0:48:230:48:29

'What rental income could the shop and flat earn?'

0:48:290:48:32

If you were letting the whole premises with the accommodation and the shop,

0:48:330:48:38

you would be looking at a rental of approximately £15,000 per annum.

0:48:380:48:42

I think the rental achievable as a single unit would be something in the region of £15,000 per annum.

0:48:420:48:47

'Does David expect to get that level of income from the tenants he's got lined up?'

0:48:470:48:53

No, I think it'll be about 20, 25.

0:48:530:48:57

'And what's the sale valuation for this property

0:48:570:49:00

'that David paid £145,000 for at auction and spent £18,000 on?

0:49:000:49:06

'Will it be more than 163 grand?'

0:49:060:49:09

If I were to put the whole property up for sale today,

0:49:090:49:12

I would expect it to achieve something in the region of £185,000 to £200,000.

0:49:120:49:18

If we were marketing the property today, with the accommodation and the fish and chip shop,

0:49:180:49:23

I feel it would be in the region of £220,000.

0:49:230:49:27

'That valuation range of between £185,000 and £220,000

0:49:280:49:33

'would give David a gross profit of £22,000 to £57,000.

0:49:330:49:39

'So might he be tempted to sell?'

0:49:390:49:41

I think £200,000 to £220,000 is the right market price.

0:49:410:49:46

I might let it go at that.

0:49:460:49:48

'Back now to Cheadle Heath where this three-bedroom semi

0:49:510:49:55

'was bought for £110,000 by Colin,

0:49:550:49:58

'a computer engineer who lives locally.

0:49:580:50:01

'The place wasn't in too bad a state,

0:50:020:50:04

'but there was a leak in the living room that was going to need attention.

0:50:040:50:09

'Colin owns two other properties locally which he rents out

0:50:090:50:13

'but his plan for this house was to do it up and sell on.'

0:50:130:50:16

-Anything in particular motivating you to do this?

-Well, my wife keeps saying

0:50:180:50:24

that she wants our house extended, so I'm hoping to do this, sell it on

0:50:240:50:28

and hopefully make a bit of money to put into an extension.

0:50:280:50:32

'Well, five and a half months have passed

0:50:320:50:35

'and we met up with Colin and his wife June to see what they've achieved.

0:50:350:50:39

'There's still no grass at the front, but the slabs have scrubbed up well.

0:50:440:50:48

'Inside, the hall feels really light thanks to the gloss and neutral emulsion.

0:50:480:50:55

'The front living room has lost the buckets.

0:50:550:50:58

'That's a good sign as it means the leaking bay window's been fixed and the room's ready for carpeting.

0:50:580:51:05

'The door from the conservatory into the kitchen has been replaced with a window

0:51:060:51:11

'and a new door now leads into the dining room.

0:51:110:51:13

'The narrow galley-style kitchen has been refitted.

0:51:160:51:19

'But, as Colin explains, there have been structural layout changes, as well.'

0:51:190:51:25

I've created a doorway which leads into the kitchen

0:51:250:51:28

and moved the old doorway from here to here

0:51:280:51:32

which enabled you to open the door fully into the kitchen.

0:51:320:51:35

I've replaced the radiator, cos the old radiator

0:51:350:51:39

encroached upon the kitchen area,

0:51:390:51:42

which gives you more of an open-plan sort of kitchen/dining area.

0:51:420:51:48

'The house has been rewired and replastered throughout.

0:51:490:51:53

'Upstairs, the gloss paint continues

0:51:530:51:56

'and the landing, like the hall, feels very bright.

0:51:560:51:59

'The suite in the bathroom at the front of the property has been replaced

0:52:000:52:04

'and a shower's been added with a tiled surround.

0:52:040:52:07

'The three bedrooms also benefit from the choice of wall colours.

0:52:080:52:12

'The original window remains in the master bedroom at the front of the house.

0:52:120:52:18

'But the two rear bedrooms now have replacement windows.

0:52:190:52:23

'New supporting lintels have been added, as well,

0:52:290:52:32

'Colin specifically bought the house, like his other two rental properties, close to where he lives

0:52:320:52:37

'so it was easy for him to get there and do the work.

0:52:370:52:41

'But has anyone else been helping him?'

0:52:410:52:44

Obviously, we had an electrician in to do the rewire.

0:52:440:52:48

I had a plasterer in to do the plastering.

0:52:480:52:50

My wife helped me with various bits and pieces,

0:52:500:52:54

a lot of tidying up, which I'm not the best at doing.

0:52:540:52:57

I helped Colin with all the colours. I think it needs a lady's touch at the end.

0:52:570:53:03

Keep it very neutral. We get on quite well.

0:53:030:53:06

I just get on with it. I get told what to do

0:53:060:53:09

and I just helped clean up, cos Colin's not very good at that, so I do quite a lot of the dirty work.

0:53:090:53:15

The garden was overgrown, so I've stripped it back and jet-washed the patio area and the walls

0:53:170:53:24

and removed the old shed and replaced some fence panels at the rear.

0:53:240:53:29

'The windows at the front remain but the guttering has been replaced.

0:53:290:53:33

'And curing the problem of the leak above the window wasn't too tricky.'

0:53:330:53:38

There was an issue with a leak on the bay window roof, which was resolved by unblocking the outlet pipe.

0:53:380:53:44

'A simple fix to something that had caused a lot of damp inside.

0:53:440:53:50

'My advice is always keep gutters clear

0:53:500:53:52

'as it stops them overflowing and causing all sorts of problems.

0:53:520:53:56

'How much has Colin had to spend here on top of the £110,000 he paid at the auction?'

0:53:560:54:01

My initial budget was £12,000.

0:54:010:54:04

However, this has increased slightly to £13,500,

0:54:040:54:08

probably due to more plasterwork and little bits and bobs that you don't foresee,

0:54:080:54:14

like light fittings, door handles and things like that.

0:54:140:54:18

We are hoping to sell the property so I can have my own house extended.

0:54:180:54:22

I've been waiting for nine years, so we might get there in the end.

0:54:220:54:26

'Time to hear what two local property experts will think

0:54:270:54:30

'of the refurbished property. Colin hopes to sell it

0:54:300:54:32

'and generate enough money to do the work on his own house.'

0:54:320:54:36

I think it's a nice property. I think the refurb's been done well.

0:54:360:54:40

I think it's a nice style of house in a nice location.

0:54:400:54:42

The level of finish is high, it's good, it's been nicely done,

0:54:420:54:46

modern bathroom, modern kitchen, plastered walls, neutral decor.

0:54:460:54:51

They've opened up a doorway between the kitchen and the dining room.

0:54:510:54:55

The general standard of the finish is quite high in the kitchen and bathroom

0:54:550:54:59

-and they've done a great job on the garden.

-The garden I feel, for a family garden,

0:54:590:55:04

I would've liked to have seen it grassed, but people can change that.

0:55:040:55:08

'What's the property now worth?

0:55:080:55:11

'Remember, Colin paid 110 grand at the auction

0:55:110:55:14

'and has spent £13,500, making a total outlay of £123,500.

0:55:140:55:21

'So is there any profit?'

0:55:210:55:23

I would put this property on the market today for £145,000.

0:55:240:55:28

We would put this on the market somewhere between £140,000 and £145,000.

0:55:280:55:33

'That valuation range, from £140,000 to £145,000,

0:55:330:55:37

'would give Colin and June a gross profit of between £16,500 and £21,500.

0:55:370:55:44

'Is that what they were hoping for?'

0:55:440:55:47

The valuations of 140 to 145,

0:55:470:55:51

probably not quite what I expected.

0:55:510:55:53

Probably wanted a bit more than that to sell it.

0:55:530:55:56

If we can't achieve what I want to achieve,

0:55:560:55:59

we'll have to put it up for rent and take it from there.

0:55:590:56:03

If they were looking to rent the property, we would rent this for around £625 per calendar month.

0:56:030:56:09

We would rent this property at £650 per calendar month.

0:56:090:56:12

625 to 650 is in line with expectations.

0:56:120:56:16

I've got other rental properties in the area and that's similar to what I'm getting for them.

0:56:160:56:21

So if we have to rent it, I'd be very happy with those figures.

0:56:210:56:25

'Well, Colin might be, but June ideally would like to sell and use the profit toward their house.

0:56:250:56:30

'But she might have to wait a little longer for the extension after all.'

0:56:300:56:35

If we don't sell it, we'll rent it out. I'll have to just wait another couple of years.

0:56:350:56:40

I've only waited nine years, so a couple of years won't be too bad.

0:56:400:56:43

If the house still holds together!

0:56:430:56:46

That's all the auction action for today.

0:56:490:56:51

Join us next time for more budding bidders on Homes Under The Hammer.

0:56:510:56:55

-We'll see you then.

-Goodbye.

-Goodbye.

0:56:550:56:57

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0:57:000:57:04

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0:57:040:57:08

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