Episode 41 Homes Under the Hammer

Hello. Buying property via the traditional means

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

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

The property could be yours in a matter of weeks.

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

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

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

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

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

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

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

'both in need of attention.'

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

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

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

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

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

-Just bought it, sir.

This is Portreath in Cornwall.

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

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

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

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

'It's certainly a glorious location,

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

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

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

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

Actually, you know what? No.

It's a plot of land.

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

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

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

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

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

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

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

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

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

In terms of the internal layout,

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

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

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

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

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

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

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

'making it easier to access the plot.

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

# Let's build a house where we can stay

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

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

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

Interesting plot of land. Quite exciting.

Good plans. Accommodation is quite spacious.

The layout looks good, particularly on the ground floor.

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

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

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

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

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

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

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

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

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

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

'An impressive end figure for the house.

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

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

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

and it does have that all-important planning permission.

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

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

garden, off-road parking.

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

60,000 kick me off. At 60.

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

50. 52. 54.

56. 58. At 58.

At 58. 60. At 60.

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

61. 61.

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

62. Half. 63.

63 and a half.

The front now says 64. 64 and a half.

64 and a half. 65. 65.

And a half.

65 and a half. 66.

And a half. 67.

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

68 is front, not back. At 68.

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

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

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

At 68 and a half twice.

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

-At 68,500.

-HAMMER BANGS

-Madam, yours, congratulations.

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

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

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

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

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

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

-Christine, lovely to meet you.

-Lovely to meet you, as well, Martin.

-Congratulations.

-Thank you.

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

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

and I've just got to do it now.

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

What specifically were you looking for?

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

which cuts a lot of the trouble out.

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

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

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

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

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

-Right.

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

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

-Right.

-You don't have to do the work.

-Yeah.

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

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

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

So why this plot and why here?

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

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

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

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

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

-No.

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

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

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

for my first new build, a simple build.

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

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

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

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

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

'So is she ready to start?'

-Have you sourced local builders yet?

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

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

-to ask for tenders from builders.

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

-Oh, at least three. Is that right?

-Yeah, absolutely! The more, the merrier!

You'll be amazed at the variation.

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

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

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

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

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

-OK.

-So tight but not outrageous.

-Not outrageous.

-And timescales for getting it all sorted?

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

Right, OK. And then after that?

I shall be looking for another one, I think.

What do you think the biggest challenge facing you is?

I can't see a problem with the build.

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

I guess that's the biggest problem.

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

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

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

-Thank you. Thank you.

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

# Add a new bit every day

So, lots of challenges ahead for Christine

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

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

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

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

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

'And with excellent transport links to London,

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

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

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

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

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

and take a look around this "plaice"!

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

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

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

'Along with that flat spread over two floors,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

So, for example, this could become a shop,

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

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

Do you know what? The options are almost endless.

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

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

'Whether the chippy changes its use or not,

'upstairs certainly needs attention.'

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

by adding some sort of rear access to the flat.

That, in my opinion, is key.

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

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

'Time-consuming and costly.

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

'what does the local estate agent think the future is

'for this high street property?'

The property itself needs an awful lot of work,

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

I would recommend splitting it into a two-bedroom apartment

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

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

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

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

the mortgage companies really don't like that very much

so I think it would be difficult to sell.

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

'How would the rental figures look?'

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

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

Having looked at this property today,

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

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

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

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

Lot 82 is a town centre takeaway premises.

I mean take away the food, not the premises.

With residential accommodation above for improvement.

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

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

135. 135, I'm obliged.

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

137. Just takes one to start. 137.

140. 140. 142. 142. 142.

And 5. 145. And 7. 147.

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

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

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

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

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

-HAMMER BANGS

-Just bought it, sir, 145.

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

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

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

David, congratulations. Well done.

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

-Yes, this is the one.

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

and it was a very busy fish and chips

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

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

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

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

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

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

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

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

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

-What about upstairs? Who viewed that?

-Nobody.

-So you didn't even see that.

-No.

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

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

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

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

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

'He appears confident about turning the place around.

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

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

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

I worked in universities and pharmaceutical companies, everywhere.

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

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

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

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

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

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

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

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

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

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

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

-And a beautiful lady like you to fry it.

-I can't fry fish.

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

-even when it comes to fish and chips.

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

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

'that's the fish and chip shop settled.

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

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

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

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

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

they'll be starting to work on it.

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

The architect is working on it.

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

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

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

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

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

This business up and running within two weeks.

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

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

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

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

-To start with.

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

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

-Is that including the extension on the back?

Yes. Because it's not a massive extension

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

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

but it'll be decent enough.

-Lovely to meet you.

-Nice meeting you, dear.

-Congratulations.

-Thank you.

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

-Let's see how we do.

-Maybe I'll try some of your chips.

-Lovely. Thank you.

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

He's also got a lot of business experience.

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

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

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

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

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

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

We applied for the extension but they refused.

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

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

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

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

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

'Christine lives in Cornwall and is now retired.

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

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

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

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

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

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

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

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

'now has a stunning new detached house.

'The property's timber-framed

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

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

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

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

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

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

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

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

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

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

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

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

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

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

I love this part of the house.

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

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

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

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

The building regs took a little bit longer to get through

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

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

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

'Although Christine changed upstairs from four to three bedrooms,

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

I did make changes to this room from the original plans

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

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

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

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

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

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

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

'Did she keep to her £80,000 budget?'

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

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

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

'Has she enjoyed the experience?'

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

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

My plan for this house is to sell it.

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

I need to sell it to do another one.

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

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

'taking advantage of that gorgeous view.'

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

The transformation is amazing. It always amazes me

what somebody can do with a plot.

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

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

It's presented to a high standard.

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

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

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

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

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

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

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

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

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

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

'making £143,500 in total.

'So what could she sell it for?'

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

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

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

'Well, they agree on the valuation

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

'What does Christine think of that?'

Oh, wow! Brilliant!

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

'What a fantastic result for Christine.

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

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

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

'Has it all been worthwhile?'

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

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

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

Roll on the next one.

I'm in Cheadle just outside Stockport,

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

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

'The area is full of local charm.

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

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

'in the Cheadle area of Cheadle Heath.

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

And this is it, a nice little residential area,

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

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

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

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

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

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

# Get yourself on my aeroplane

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

So what have we got?

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

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

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

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

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

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

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

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

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

which is what you need. Another open fire.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

'The bathroom's spacious enough.

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

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

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

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

some people have put a small extension on the back.

You could probably do that within permitted development rules.

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

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

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

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

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

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

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

The positives of this property are firstly the location,

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

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

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

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

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

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

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

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

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

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

'What rental income could the house generate?'

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

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

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

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

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

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

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

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

95 I have. 95,000 I have.

At 95, then. At 97.

97 bid. At 97. Do I see 99?

New bid, 99. Do I see 101?

101 do I see? 101? 102.

At 102. 103.

103. 104?

104. 105. 105. At 105.

Do I see 106? 106. 107?

107. 107,000.

108.

109. At 109,000.

109 and a half. 110.

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

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

110,000 then for the first time.

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

-Are we all done at £110,000?

-HAMMER BANGS

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

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

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

-Colin, congratulations.

-Thank you very much.

-Tell me why you wanted to buy the house.

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

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

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

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

And what are you buying it for?

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

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

-Is this something you've done before?

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

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

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

Anything in particular motivating you to do this?

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

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

-Oh, great.

-On our property.

-So did you see the property beforehand?

-I drove past it and looked at it.

-Right.

-That was about it.

I got out of the car and looked at the front

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

-Why?

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

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

-and in hindsight, I probably should've.

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

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

-Oh, right.

But I think I've got away with things.

-But it's not a good idea.

-No, definitely not.

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

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

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

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

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

-Right.

-What do you class as major construction?

-The major construction would be to knock down

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

-Great.

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

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

-cos it is a structural wall.

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

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

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

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

opening out onto the dining area.

'He's also planning on getting the house rewired

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

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

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

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

-I'm a computer engineer.

-Right.

-So this is a sideline or...?

-It is a sideline, yeah.

-How much is the work going to cost?

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

-Right.

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

-What kind of timescale?

-Well, I did say six months

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

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

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

-No nasty surprises in store, then?

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

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

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

-OK.

-Good luck.

-Thanks very much.

-Look forward to seeing it.

Well, Colin cool as a cucumber there,

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

In the property-developing business, time is money

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

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

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

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

Time for them to show us their hands.

'Time to return to Strood near Rochester in Kent

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

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

# Can I take your order, please?

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

'But this was his first fish and chip shop.

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

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

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

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

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

All we'll be needing is a freezer,

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

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

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

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

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

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

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

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

'But the battered accommodation above the fish shop

'has now scaled new heights.

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

'has now been transformed into a kitchen.

'The only extractor now is above the new hob.

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

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

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

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

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

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

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

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

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

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

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

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

We applied for the extension but they refused.

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

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

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

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

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

'It might end up being the best solution.

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

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

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

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

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

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

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

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

new lighting, new ceiling, new camera,

smoke detectors, emergency lighting.

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

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

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

including the kitchen, new bathroom,

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

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

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

There are quite a few people that are looking at it

and they are just now looking for new cookers.

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

'Time to hear what two local property experts think of

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

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

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

but it is adequate for its needs.

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

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

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

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

The living space is quite spacious

with the two bedrooms, separate lounge, kitchen.

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

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

if it had separate accommodation.

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

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

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

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

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

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

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

'And what's the sale valuation for this property

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

'Will it be more than 163 grand?'

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

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

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

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

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

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

'So might he be tempted to sell?'

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

I might let it go at that.

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

'was bought for £110,000 by Colin,

'a computer engineer who lives locally.

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

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

'Colin owns two other properties locally which he rents out

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

-Anything in particular motivating you to do this?

-Well, my wife keeps saying

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

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

'Well, five and a half months have passed

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

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

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

'The front living room has lost the buckets.

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

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

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

'The narrow galley-style kitchen has been refitted.

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

I've created a doorway which leads into the kitchen

and moved the old doorway from here to here

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

I've replaced the radiator, cos the old radiator

encroached upon the kitchen area,

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

'The house has been rewired and replastered throughout.

'Upstairs, the gloss paint continues

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

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

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

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

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

'But the two rear bedrooms now have replacement windows.

'New supporting lintels have been added, as well,

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

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

'But has anyone else been helping him?'

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

I had a plasterer in to do the plastering.

My wife helped me with various bits and pieces,

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

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

Keep it very neutral. We get on quite well.

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

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

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

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

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

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

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

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

'My advice is always keep gutters clear

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

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

My initial budget was £12,000.

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

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

like light fittings, door handles and things like that.

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

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

'Time to hear what two local property experts will think

'of the refurbished property. Colin hopes to sell it

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

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

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

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

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

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

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

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

-The garden I feel, for a family garden,

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

'What's the property now worth?

'Remember, Colin paid 110 grand at the auction

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

'So is there any profit?'

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

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

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

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

'Is that what they were hoping for?'

The valuations of 140 to 145,

probably not quite what I expected.

Probably wanted a bit more than that to sell it.

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

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

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

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

625 to 650 is in line with expectations.

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

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

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

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

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

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

If the house still holds together!

That's all the auction action for today.

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

-We'll see you then.

-Goodbye.

-Goodbye.

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