0:00:02 > 0:00:05Hello and welcome. The auction room is an exciting place to be.
0:00:05 > 0:00:10And you might even brave the bidding and bag yourself a bargain.
0:00:10 > 0:00:12Yes. You never know what might happen
0:00:12 > 0:00:15when you buy your home under the hammer.
0:00:40 > 0:00:44Now, buying a property can be a long and stressful process.
0:00:44 > 0:00:47But if you buy at auction, you get speed of service in the auction room.
0:00:47 > 0:00:51That's because, when the hammer falls, the property is yours.
0:00:51 > 0:00:54So let's find out what people bought on today's show.
0:00:55 > 0:00:59We revisit this former martial-arts centre in Cardiff,
0:00:59 > 0:01:01which packed a real punch when I first saw it.
0:01:01 > 0:01:04- HE LAUGHS - Wow!
0:01:06 > 0:01:11I'll be checking how convenient this property in Watford is.
0:01:11 > 0:01:14Got ladies' and men's loos, really good condition...
0:01:15 > 0:01:20While I get the opposite impression with this house in Manchester.
0:01:20 > 0:01:22I just don't think it's worth it.
0:01:22 > 0:01:25It's one of those cases where you just leave well alone.
0:01:26 > 0:01:29All these properties have been sold at auction,
0:01:29 > 0:01:33and we'll find out who bought them and what they paid for them
0:01:33 > 0:01:36- when they went under the hammer. - There we go!
0:01:37 > 0:01:40Back in May 2009,
0:01:40 > 0:01:44I went to the historic but happening capital city of Wales, Cardiff,
0:01:44 > 0:01:47to an area which was the childhood stomping ground
0:01:47 > 0:01:49of Dame Shirley Bassey, no less.
0:01:51 > 0:01:54I'm in a place which has one of my favourite names
0:01:54 > 0:01:57of anywhere in the country - Splott!
0:01:57 > 0:01:59It's a residential suburb of Cardiff.
0:01:59 > 0:02:02Isn't that great? And there's a very interesting opportunity
0:02:02 > 0:02:04on the cards. It's this building here,
0:02:04 > 0:02:08the former aikido centre. It's a residential development opportunity,
0:02:08 > 0:02:12but will it be "diamonds are forever" for the buyer,
0:02:12 > 0:02:14or does it need "a big spender"?
0:02:14 > 0:02:17# The minute you walked in the joint
0:02:17 > 0:02:20# I could see you were a man of distinction
0:02:20 > 0:02:23# A real big spender...
0:02:23 > 0:02:26From the outside, this former martial-arts centre
0:02:26 > 0:02:30is certainly impressive. It's a two-storey detached property
0:02:30 > 0:02:33with a lovely brick-and-stone facade.
0:02:33 > 0:02:36The guide price at auction was £42,000.
0:02:36 > 0:02:38Let's take a look inside.
0:02:38 > 0:02:40# Hey, big spender #
0:02:42 > 0:02:44So, what's behind the big black door?
0:02:44 > 0:02:48Um... OK. Well, downstairs here, one very large room.
0:02:48 > 0:02:51I'd say slightly disappointing, though.
0:02:51 > 0:02:53Big industrial space, if you like,
0:02:53 > 0:02:56though bearing in mind this was a martial-arts club,
0:02:56 > 0:02:59I guess this was a training area. You've got changing facilities there
0:02:59 > 0:03:02but not a lot else.
0:03:02 > 0:03:05Still, intriguing. Let's take a look upstairs.
0:03:05 > 0:03:09# Everybody was kung fu fighting...
0:03:10 > 0:03:12HE LAUGHS
0:03:12 > 0:03:14Wow!
0:03:14 > 0:03:18# In fact it was a little bit frightening #
0:03:18 > 0:03:22What an amazing space!
0:03:22 > 0:03:26Oh, you come up here, and this place has suddenly redeemed itself.
0:03:26 > 0:03:31Look at this! The high ceilings, the wooden floorboards...
0:03:31 > 0:03:34I guess this was where the main training area
0:03:34 > 0:03:36for the martial-arts centre would have been.
0:03:36 > 0:03:39So, what could you use this for?
0:03:39 > 0:03:41Well, the biggest issue, at first glance,
0:03:41 > 0:03:44is the fact that you've only got light on the front and that side
0:03:44 > 0:03:48of the building, so if you're converting this to residential,
0:03:48 > 0:03:51you've got that whole wall there and that one
0:03:51 > 0:03:54which has got no windows in it, so you'd have to get creative -
0:03:54 > 0:03:58think about knocking it down, putting a steel frame inside,
0:03:58 > 0:04:00and converting it into flats.
0:04:00 > 0:04:05Er, the options are endless and very exciting.
0:04:07 > 0:04:10There are many options here,
0:04:10 > 0:04:13and it's a great space for sure.
0:04:13 > 0:04:16But the building is not without its problems.
0:04:16 > 0:04:20Redevelopment as residential will need the planners on your side,
0:04:20 > 0:04:22not to mention the neighbours.
0:04:22 > 0:04:25Structurally, from the outside it's clear
0:04:25 > 0:04:28that the walls and roof are in serious need of repair,
0:04:28 > 0:04:30and that's going to cost.
0:04:30 > 0:04:33But with a guide price of £42,000,
0:04:33 > 0:04:38I think there's a lot of opportunity for this property.
0:04:39 > 0:04:43So, will this former martial-arts centre be retained
0:04:43 > 0:04:45and maybe converted into flats,
0:04:45 > 0:04:47set up as a community centre perhaps,
0:04:47 > 0:04:50or knocked down and replaced by houses?
0:04:50 > 0:04:54I fear it may well be for the karate chop.
0:04:54 > 0:04:57Let's go to the auction and find out what happened.
0:05:00 > 0:05:02On we go now, then, ladies and gentlemen,
0:05:02 > 0:05:05to lot number 24 in your catalogue.
0:05:05 > 0:05:09Detached two-storey commercial premises this time.
0:05:09 > 0:05:13I have a £49,000 reserve,
0:05:13 > 0:05:16and I have a £49,000 proxy bid.
0:05:16 > 0:05:20So what am I bid for it? Can I see 50 in the room, please?
0:05:20 > 0:05:24I am selling all the time. I have a £49,000 bid.
0:05:24 > 0:05:27At £49,000 I am selling.
0:05:27 > 0:05:3050 if you like. At 49,000...
0:05:30 > 0:05:3350. Thank you. At 50,000 I'm bid.
0:05:33 > 0:05:3551 for my proxy bid.
0:05:35 > 0:05:40At 51. Two if you like now, madam. My proxy bid is out.
0:05:40 > 0:05:44At 52,000. I'm selling all the time.
0:05:44 > 0:05:46It is your bid, madam. At 52,000.
0:05:46 > 0:05:49Can I see three anywhere now? It's the lady's bid.
0:05:49 > 0:05:54At £52,000. She's going to get it if you're not quick.
0:05:54 > 0:05:57Have you all done, then? Three, thank you, standing in the back.
0:05:57 > 0:06:02I thought you'd got it, madam. At... Four. 54 for the lady.
0:06:02 > 0:06:0655, will you, sir? Five. 55 for the gent.
0:06:06 > 0:06:0956, please, madam. 56, I'm bid.
0:06:09 > 0:06:12At 56. Are you coming again, sir? Don't shake your head!
0:06:12 > 0:06:16You don't get it that way. At 56,000 for the lady, then.
0:06:16 > 0:06:19At 56,000. Are you coming again, sir?
0:06:19 > 0:06:21Yes or no? The lady's going to get it.
0:06:21 > 0:06:24£56,000. Have you all done, then?
0:06:24 > 0:06:27At £56,000...
0:06:27 > 0:06:29Lady's bid. Thank you.
0:06:29 > 0:06:33The successful bid of 56,000 was made by Noor
0:06:33 > 0:06:36on behalf of her husband, Ahmed.
0:06:36 > 0:06:39Ahmed is a retired child psychiatrist
0:06:39 > 0:06:42who's using his pension pot to invest in property.
0:06:42 > 0:06:45He already has six others, five of which he rents out.
0:06:45 > 0:06:49I met up with the doctor to find out if he had a remedy
0:06:49 > 0:06:51for this ailing building.
0:06:51 > 0:06:53Beautiful, beautiful.
0:06:53 > 0:06:56I'd love to see these floorboards cleaned up.
0:06:56 > 0:06:59I hope we'll keep on top of it, for the time being at least.
0:06:59 > 0:07:01- Listen, congratulations.- Thank you.
0:07:01 > 0:07:05- Interesting project!- Very. - Tell me why you wanted to buy it.
0:07:05 > 0:07:08- Because it's interesting.- OK!
0:07:08 > 0:07:11It's different than other buildings around it.
0:07:11 > 0:07:14It seemed to have a character of some shape.
0:07:14 > 0:07:17- I didn't have an opportunity to come inside...- Really?
0:07:17 > 0:07:21..but, you see, it's location, location, location,
0:07:21 > 0:07:24so you have to study the territory around you.
0:07:24 > 0:07:26You have to know what buildings are around,
0:07:26 > 0:07:30so you can think what is the potential of developing this into,
0:07:30 > 0:07:33and I thought that was a reasonable price.
0:07:33 > 0:07:37Of course, I always advise against buying at auction
0:07:37 > 0:07:39without viewing the property first,
0:07:39 > 0:07:44but Ahmed had at least done valuable location research beforehand.
0:07:44 > 0:07:46So, what's the plan for this place, then?
0:07:46 > 0:07:50I don't think there are clear plans as yet, actually.
0:07:50 > 0:07:54It goes all the way from demolishing it and redeveloping it from scratch
0:07:54 > 0:07:58into, kind of, why not keep the walls...
0:07:58 > 0:08:01So no clear plan yet, then.
0:08:01 > 0:08:05There's quite a difference between the option of demolishing
0:08:05 > 0:08:08and rebuilding and converting the current building to flat,
0:08:08 > 0:08:11which is Ahmed's other idea. Whichever he goes for
0:08:11 > 0:08:14will have a big impact on the budget, for starters.
0:08:14 > 0:08:18Do you have any idea of budgets? How much have you got to play with?
0:08:18 > 0:08:23With this size, then, the minimum I would think of,
0:08:23 > 0:08:26if we can make that a couple of semis,
0:08:26 > 0:08:30or three flats, that would be worthwhile.
0:08:30 > 0:08:35Er, that will mean we may need to spend maybe £70,000, £80,000
0:08:35 > 0:08:38on developing it and so forth.
0:08:38 > 0:08:42So, the doctor's budget for redeveloping the building,
0:08:42 > 0:08:45either by rebuilding or converting it to flats,
0:08:45 > 0:08:48is similar - around the £70,000 to £80,000 mark.
0:08:48 > 0:08:52- What kind of timescale have you got? - Realistically I give this project...
0:08:52 > 0:08:56a year. I'm hoping it will be eight months, something like that.
0:08:56 > 0:08:59That's a realistic kind of thing, really.
0:08:59 > 0:09:03As there are no planning consents in place here,
0:09:03 > 0:09:07I just hope that eight months to a year will be long enough.
0:09:07 > 0:09:10And although Ahmed may be hazy over which direction to take,
0:09:10 > 0:09:13he's very clear about making an informed decision
0:09:13 > 0:09:17based on professional advice. So, time to meet his trusted architect.
0:09:17 > 0:09:21Somas, you're Ahmed's architect. What do you think of this place?
0:09:21 > 0:09:25Initially when I saw this building,
0:09:25 > 0:09:29I thought, "It has got character." That's what I told him.
0:09:29 > 0:09:32And if he can retain the building in the development,
0:09:32 > 0:09:34that would be a great achievement.
0:09:34 > 0:09:37So I am in the process of designing something
0:09:37 > 0:09:40where I will be retaining the building.
0:09:40 > 0:09:44How are you going to do that? What ideas do you have?
0:09:44 > 0:09:47It's creating small openings to act as light wells,
0:09:47 > 0:09:50so that you can get light into the middle of the building,
0:09:50 > 0:09:54so you can have bedrooms looking into the courtyard,
0:09:54 > 0:09:56and yet keep the structure as it is.
0:09:56 > 0:09:59I'll try my best to convince the doctor
0:09:59 > 0:10:01that that is the best,
0:10:01 > 0:10:06and try to show it in terms of economising wherever possible,
0:10:06 > 0:10:10to reduce the cost in the conversion,
0:10:10 > 0:10:13and get as many units as possible
0:10:13 > 0:10:16so that it becomes a better return for him.
0:10:18 > 0:10:21Ahmed gave himself a year to complete the work.
0:10:21 > 0:10:25But when we first met up with him again in January 2011,
0:10:25 > 0:10:2820 months later, things weren't quite finished.
0:10:30 > 0:10:34It wasn't tenant-ready yet, but there was an interesting story to tell.
0:10:34 > 0:10:37On the inside, they'd put down a brand-new floor.
0:10:40 > 0:10:43So where the accommodation used to be over two floors,
0:10:43 > 0:10:46it's now on three. So, why all the delays?
0:10:50 > 0:10:54The original hope I had at the very, very beginning
0:10:54 > 0:10:58was that I may have six one-bedroom flats.
0:10:58 > 0:11:03We applied for that, and then were told no,
0:11:03 > 0:11:06and so eventually, after some long negotiations,
0:11:06 > 0:11:08we agreed to three one-bedroom flats.
0:11:08 > 0:11:12So Ahmed's grand plans for six one-beds were rejected
0:11:12 > 0:11:15in favour of three larger one-bed flats.
0:11:15 > 0:11:18Each flat comprises a double bedroom, a bathroom
0:11:18 > 0:11:21and a large kitchen-dining-living area.
0:11:21 > 0:11:23The flats are pretty spacious,
0:11:23 > 0:11:25each measuring around 100 square metres.
0:11:25 > 0:11:30All the to-ing and fro-ing with planners really held Ahmed back,
0:11:30 > 0:11:33and then there were the neighbours to get on-side.
0:11:34 > 0:11:36We had to negotiate with the neighbours
0:11:36 > 0:11:39how to go through the process of the development
0:11:39 > 0:11:43and how to keep them kind of comfortable,
0:11:43 > 0:11:45and coping with...
0:11:45 > 0:11:48Ah, yes, I suspect builders around the place are intrusions,
0:11:48 > 0:11:54so in that sense they had reason to be kind of...to be comforted.
0:11:54 > 0:11:58It's always wise to see things from the perspective
0:11:58 > 0:12:01of those living close by, and keep things amicable.
0:12:01 > 0:12:05One agreement that was reached was for Ahmed to rent the garden space
0:12:05 > 0:12:08of five neighbours to put scaffolding up
0:12:08 > 0:12:10to take off the roof.
0:12:10 > 0:12:13So eventually we were able to make the deal,
0:12:13 > 0:12:17and eventually we were all kind of happy with the work to progress.
0:12:17 > 0:12:20Phew! So the builders could then set about creating
0:12:20 > 0:12:23three one-bedroom flats.
0:12:25 > 0:12:27There's one flat on the ground floor,
0:12:27 > 0:12:30one apartment on the new first floor,
0:12:30 > 0:12:33and a light-and-airy penthouse on the top floor.
0:12:33 > 0:12:36But the most intriguing feature of the accommodation
0:12:36 > 0:12:40is that it's all been built around an ingenious light well.
0:12:41 > 0:12:45# Light up, light up
0:12:45 > 0:12:49# As if you have a choice #
0:12:49 > 0:12:52OK, so this needs a bit of imagination!
0:12:52 > 0:12:56But ignore the scaffolding planks at the top
0:12:56 > 0:13:00and picture this shaft painted white, and you'll get the idea.
0:13:00 > 0:13:03Ahmed hoped that when this was finished,
0:13:03 > 0:13:07it would bounce the light around, creating a bright and spacious flat.
0:13:07 > 0:13:10Later in the show, we catch up with the project
0:13:10 > 0:13:13another six months on, to see whether Ahmed's bright idea
0:13:13 > 0:13:15is finally complete.
0:13:25 > 0:13:30# Baby, it's cold outside #
0:13:31 > 0:13:34On this cold and snowy day,
0:13:34 > 0:13:37I'm 20 miles northwest of Central London in Watford.
0:13:37 > 0:13:40It's an important commercial and retail centre,
0:13:40 > 0:13:44and historically was on the common route from London to the Midlands.
0:13:44 > 0:13:46It's no surprise that these transport links
0:13:46 > 0:13:51have continued to grow, as there's access to the M1 and M25,
0:13:51 > 0:13:53with good train and Underground links.
0:13:53 > 0:13:56But what about the housing around here?
0:13:58 > 0:14:02This is predominantly a residential street in Watford,
0:14:02 > 0:14:04with a number of reasonably modern houses,
0:14:04 > 0:14:09very typical for the area. However, the property I'm here to see
0:14:09 > 0:14:13had never been lived in. The guide price was £165,000.
0:14:13 > 0:14:15It's a pretty modern build,
0:14:15 > 0:14:18and I don't think you're going to be struggling for parking
0:14:18 > 0:14:22with this space out here. I know it doesn't look like one,
0:14:22 > 0:14:25but it's a church!
0:14:25 > 0:14:28SONG: "Hallelujah Chorus" by Handel
0:14:31 > 0:14:33It may not appear to be a traditional church
0:14:33 > 0:14:38in an architectural sense, but its location in the heart of the community,
0:14:38 > 0:14:41on a residential street, could benefit a shrewd purchaser.
0:14:48 > 0:14:50So, this is the foyer.
0:14:50 > 0:14:53Gosh! Do you know, it's clean as a whistle in here!
0:14:53 > 0:14:56It's almost as though it's recently been renovated.
0:14:56 > 0:15:00You've got the ladies' and men's loos, really good condition.
0:15:00 > 0:15:03And this is the space!
0:15:03 > 0:15:06Goodness! There's a whole load of nothing in here.
0:15:06 > 0:15:08There's actually no character at all.
0:15:08 > 0:15:11I was expecting a few stained-glass windows.
0:15:11 > 0:15:14What you do have, though, is fairly new double-glazed units,
0:15:14 > 0:15:16so that's one good thing.
0:15:16 > 0:15:20I'm just wondering what you could use this room for.
0:15:20 > 0:15:22You've got some heating down there,
0:15:22 > 0:15:24and there's air conditioning up here,
0:15:24 > 0:15:26so you don't have traditional radiators.
0:15:26 > 0:15:29I'm just wondering if there's any way
0:15:29 > 0:15:33you could increase the square footage by knocking through here.
0:15:33 > 0:15:36I'm going to investigate.
0:15:36 > 0:15:41So it's a serviceable building which is in pretty good condition.
0:15:41 > 0:15:43But with a big, plain room like this,
0:15:43 > 0:15:47I think the selling factor would be the amount of space you've got.
0:15:47 > 0:15:49Could the answer lie outdoors?
0:15:49 > 0:15:53You've got a little bit of room outside this building here,
0:15:53 > 0:15:58and I don't think you'll have too many problems getting permission to extend.
0:15:58 > 0:16:02It could open up the opportunities of what the place could be used for,
0:16:02 > 0:16:05and I think it'll make the world of difference to the interior.
0:16:05 > 0:16:08It may not be a huge amount of room,
0:16:08 > 0:16:11but those extra feet could open up your options here.
0:16:11 > 0:16:14And, as the space at the back has no other use,
0:16:14 > 0:16:17it would be a real shame to waste it.
0:16:25 > 0:16:28So, what could you do with this place?
0:16:28 > 0:16:30Well, the current classification is D1,
0:16:30 > 0:16:34which means this building can be used for medical or health services.
0:16:34 > 0:16:37It could be used for a day nursery, a creche,
0:16:37 > 0:16:40education facilities, or as a place of worship.
0:16:40 > 0:16:43You could also apply for a change of use.
0:16:43 > 0:16:46However, there are only so many things you'll be able to do
0:16:46 > 0:16:50with a building like this. I'm not so sure this building lends itself
0:16:50 > 0:16:55to make a nice cosy home, but what about a development opportunity?
0:16:55 > 0:16:58Could you knock it down and replace it with two new builds,
0:16:58 > 0:17:02if the local planning authorities agreed, of course?
0:17:02 > 0:17:05You know, I think it's definitely worth a bit of research.
0:17:05 > 0:17:09I love the fact you've got lots of options with this place.
0:17:09 > 0:17:11But what does the local property expert think?
0:17:11 > 0:17:13We asked one along to tell us what she thought
0:17:13 > 0:17:18of this former church that was guided at 165,000.
0:17:18 > 0:17:20The building's in very good condition.
0:17:20 > 0:17:23It has air conditioning, double glazing,
0:17:23 > 0:17:25good facilities.
0:17:25 > 0:17:28What's the development potential of this place?
0:17:28 > 0:17:33There's definitely a strong argument for viewing this as a plot,
0:17:33 > 0:17:37and possibly a developer knocking down the building
0:17:37 > 0:17:40and putting residential dwellings on the plot.
0:17:40 > 0:17:42The rental value of the premises as it stands,
0:17:42 > 0:17:47with its current usage, I would say you would get in the region
0:17:47 > 0:17:50of £15,600 per annum.
0:17:50 > 0:17:54Because it is on a sizeable plot, we would look to market the premises
0:17:54 > 0:17:58at roughly £250,000.
0:18:00 > 0:18:04So, a big open space in need of some inspiration.
0:18:04 > 0:18:07I suppose as it is, it is a good blank canvas.
0:18:07 > 0:18:12Let's find out who had a vision for this place over at the auction.
0:18:16 > 0:18:19Lot 37. We move up to Watford now.
0:18:19 > 0:18:23Who'd like to kick off on this? 150 in the aisle.
0:18:23 > 0:18:25Thanks. 150. 155.
0:18:25 > 0:18:27155.
0:18:27 > 0:18:29160. 165.
0:18:29 > 0:18:32166.
0:18:32 > 0:18:33167.
0:18:33 > 0:18:35168.
0:18:35 > 0:18:39169. 170.
0:18:39 > 0:18:43This is exactly what every seller wants -
0:18:43 > 0:18:45two bidders fighting it out.
0:18:45 > 0:18:50It's not long before the bids shoot up past 240,000.
0:18:50 > 0:18:52241 with you.
0:18:52 > 0:18:54242.
0:18:54 > 0:18:57If not, 241 on my left.
0:18:57 > 0:19:01First time, second time, third...
0:19:01 > 0:19:04242. 243.
0:19:05 > 0:19:07244.
0:19:09 > 0:19:11245.
0:19:11 > 0:19:14I know what I'd bid.
0:19:14 > 0:19:17You're not with me. 246?
0:19:18 > 0:19:23No? 245 on my left.
0:19:23 > 0:19:26246 elsewhere? If not, 245.
0:19:26 > 0:19:29First time, second time.
0:19:29 > 0:19:31Third and last time. Have you all done?
0:19:33 > 0:19:36Sold, 245. Well done. Sorry, at the back.
0:19:36 > 0:19:39That successful bid of 245,000,
0:19:39 > 0:19:42a massive £80,000 more than the guide price,
0:19:42 > 0:19:46was made by Rudra, a full-time property developer.
0:19:46 > 0:19:49He and his wife Bhama have an interesting plan
0:19:49 > 0:19:52for this former church. I met up with Rudra
0:19:52 > 0:19:55at the property to find out more.
0:19:55 > 0:19:59- Rudra, congratulations. Lovely to meet you today.- And you.
0:19:59 > 0:20:02What's the story behind you wanting to buy this?
0:20:02 > 0:20:05We've got a little boy, and we've always looked around at nurseries,
0:20:05 > 0:20:07and we couldn't find one,
0:20:07 > 0:20:10so we thought we'd build our own from scratch.
0:20:10 > 0:20:13So you saw this and thought of it as a nursery?
0:20:13 > 0:20:16- Yes.- So when you viewed it for the first time, what did you think?
0:20:16 > 0:20:20Good. It had potential. It wasn't as big as we thought,
0:20:20 > 0:20:22but I thought it had potential to extend
0:20:22 > 0:20:25and make it into an ideal day nursery.
0:20:25 > 0:20:30You are going some, buying a nursery just because you couldn't find one for your son!
0:20:30 > 0:20:33Yes, but we thought we could provide a good service,
0:20:33 > 0:20:37and, you know, it's nice to have your own,
0:20:37 > 0:20:39and you can drive it yourself then.
0:20:39 > 0:20:42That's certainly dedicated parenting,
0:20:42 > 0:20:45and what we find here is a building
0:20:45 > 0:20:47that seems to be offering a lot of opportunities.
0:20:47 > 0:20:51So, you're saying that you feel that you'd need to extend this?
0:20:51 > 0:20:53- Mm-hm.- Where would you do that?
0:20:53 > 0:20:58Just behind where you stand. We'll be punching a hole through there
0:20:58 > 0:21:02and creating a baby room, and on this side would be a kitchen,
0:21:02 > 0:21:05and obviously this will be the main day room.
0:21:05 > 0:21:07So when you saw it for the first time,
0:21:07 > 0:21:10did you think, "Ah! This is perfect"?
0:21:10 > 0:21:13- Yes.- And how much experience in property do you have?
0:21:13 > 0:21:16I've got some experience. We've done conversions
0:21:16 > 0:21:20and new builds, but nothing in the commercial sectors such as this,
0:21:20 > 0:21:24and involving other people's children, primarily.
0:21:24 > 0:21:28Rudra may not have any experience of running a nursery,
0:21:28 > 0:21:31but he does know his way round the property market.
0:21:31 > 0:21:34That means he's aware of many unexpected legal issues
0:21:34 > 0:21:36that could crop up.
0:21:36 > 0:21:40Was there anything that took your eye in the legal pack?
0:21:40 > 0:21:42Did you read it prior to the auction?
0:21:42 > 0:21:44We went through it. There is an overage.
0:21:44 > 0:21:46There's a clause within it,
0:21:46 > 0:21:52which, again, we have to share it with the original sellers.
0:21:52 > 0:21:55But it's limited to ten years, so...
0:21:55 > 0:21:58So you need to keep these premises for ten years,
0:21:58 > 0:22:00otherwise you have to pay a percentage...
0:22:00 > 0:22:03- Yes.- ..to the original vendor?- Yes.
0:22:03 > 0:22:06- And how much is that percentage? - It's 20 percent of the gain.
0:22:06 > 0:22:10Rudra and Bhama view the nursery as a long-term investment,
0:22:10 > 0:22:14so they don't see the sell-on clause as too much of an issue.
0:22:14 > 0:22:17The good news is that the D1 classification
0:22:17 > 0:22:20covers the building for use as a nursery,
0:22:20 > 0:22:22so they don't have to apply for change of use.
0:22:22 > 0:22:25But they will have to get planning permission
0:22:25 > 0:22:27to extend at the back.
0:22:27 > 0:22:30So, what sort of budget are we looking at here,
0:22:30 > 0:22:34- to do the work that you need to do? - We've earmarked about £60,000.
0:22:34 > 0:22:38How long do you think it will take to get all the work sorted out?
0:22:38 > 0:22:41It's going to be about 12 to 16 weeks.
0:22:41 > 0:22:44- And you're quite certain on that? - We'll try to.
0:22:44 > 0:22:47How good are you at keeping to figures and timescales?
0:22:47 > 0:22:51When you come back, we'll find out whether we have been.
0:22:51 > 0:22:54Rudra hopes the paperwork won't take more than six weeks
0:22:54 > 0:22:58to get signed off. After that, that's when the real work starts.
0:23:00 > 0:23:04You have mentioned that you've got a little bit of experience in property.
0:23:04 > 0:23:08Have you thought about potentially redeveloping this site,
0:23:08 > 0:23:10maybe building a couple of houses here?
0:23:10 > 0:23:12We did look into the option,
0:23:12 > 0:23:17but our primary goal was, we wanted a nursery, a nursery site.
0:23:17 > 0:23:21But that's a real good sort of failsafe, I suppose.
0:23:21 > 0:23:24We can still probably put - we've spoken to the planners -
0:23:24 > 0:23:28- put two houses up.- That's something you can think about in the future.
0:23:28 > 0:23:30Yes. Maybe after the ten years.
0:23:30 > 0:23:34- Exactly. Whatever you do, stick with the ten years!- Exactly.
0:23:34 > 0:23:38Good luck with this. It's really an exciting project for you,
0:23:38 > 0:23:41- and it is your time. Well done. - Thank you.- Thank you.
0:23:44 > 0:23:49Rudra and his wife are taking on a brand-new, exciting challenge
0:23:49 > 0:23:51in their lives. But I've got a feeling
0:23:51 > 0:23:54the church renovations are going to be the easy part
0:23:54 > 0:23:56compared with running a nursery!
0:23:56 > 0:24:00You can find out how they get on later in the programme.
0:24:01 > 0:24:05Coming up - this house in Manchester is far from being homely.
0:24:05 > 0:24:10Well, as you can see, it does need some work.
0:24:11 > 0:24:15Turning this church in Watford into a nursery wasn't child's play.
0:24:15 > 0:24:18They suggested that we have the nursery up and running,
0:24:18 > 0:24:21and then do the extension.
0:24:21 > 0:24:25But first, in Cardiff, Ahmed has been selfless
0:24:25 > 0:24:27with his renovation.
0:24:27 > 0:24:29It's not what I want.
0:24:29 > 0:24:31It's what someone who will live here would want.
0:24:34 > 0:24:37Now to Cardiff, where, back in 2009,
0:24:37 > 0:24:42this former martial-arts centre sold at auction for 56,000.
0:24:42 > 0:24:44It was bought by Ahmed, a retired doctor,
0:24:44 > 0:24:47who was looking to build up his portfolio of properties.
0:24:47 > 0:24:50But he wasn't quite sure what to do with this one.
0:24:53 > 0:24:56I don't think there are clear plans as yet, actually.
0:24:56 > 0:25:00It goes all the way from demolishing it and redeveloping it from scratch
0:25:00 > 0:25:04into, kind of, why not keep the walls?
0:25:04 > 0:25:07He decided not to demolish the building,
0:25:07 > 0:25:11and planned to convert it into modern flats to rent out.
0:25:11 > 0:25:14He gave himself a reasonable timescale to work to.
0:25:16 > 0:25:20But 20 months later, when we first returned,
0:25:20 > 0:25:23he hadn't quite done as much as he hoped.
0:25:23 > 0:25:26The work was delayed waiting for planning permission,
0:25:26 > 0:25:29and when his proposal for six one-bed flats fell through,
0:25:29 > 0:25:32Ahmed had to settle for converting the property
0:25:32 > 0:25:37into three large one-bedroom flats. But in order to do that,
0:25:37 > 0:25:41he had to create a whole new storey in the property,
0:25:41 > 0:25:44and there were other delays, too.
0:25:47 > 0:25:51We had to negotiate with the neighbours about the development,
0:25:51 > 0:25:55and how to keep them kind of comfortable,
0:25:55 > 0:25:57and coping with...
0:25:57 > 0:26:01Ah, yes, I suspect builders around the place are an intrusion,
0:26:01 > 0:26:06so in that sense, they had reason to be kind of comforted.
0:26:06 > 0:26:10So, six months on from our last visit,
0:26:10 > 0:26:13and just over two years since he bought the property,
0:26:13 > 0:26:15has Ahmed finally completed the project?
0:26:17 > 0:26:20# Trust me, trust me, I'm a doctor
0:26:20 > 0:26:24# Trust me, trust me, I'm a doctor
0:26:24 > 0:26:28# I know, I know what I'm doing wrong #
0:26:28 > 0:26:32As you can see, each of the flats has been finished off nicely,
0:26:32 > 0:26:34with new flooring throughout
0:26:34 > 0:26:37and fresh paint on those new interior walls.
0:26:40 > 0:26:46Ahmed has put modern, stylish shower rooms and kitchens in each flat.
0:26:46 > 0:26:50Although the colour scheme and fittings are all fairly neutral,
0:26:50 > 0:26:53remember, he did plan to rent the flats out.
0:26:53 > 0:26:56Honestly, when we do a project like that,
0:26:56 > 0:26:58it's not what I want.
0:26:58 > 0:27:00It's what someone who will live here would want,
0:27:00 > 0:27:05and how it can be comfortable, how it can feel safe,
0:27:05 > 0:27:07how it can feel kind of refreshing,
0:27:07 > 0:27:10er, liveable in.
0:27:10 > 0:27:15The piece de resistance is the conversion of the top floor
0:27:15 > 0:27:18into a bright penthouse flat.
0:27:18 > 0:27:21There's a lot of space up here,
0:27:21 > 0:27:23although the bedroom is a little on the small side.
0:27:23 > 0:27:26I would have gone for more substantial central heating
0:27:26 > 0:27:29than those heaters, but those VELUX windows in the roof
0:27:29 > 0:27:31make the whole place shine.
0:27:31 > 0:27:34SONG: "Ray Of Light" by Madonna
0:27:34 > 0:27:37# Quicker than a ray of light
0:27:37 > 0:27:40# Quicker than a ray of light...
0:27:40 > 0:27:42And it's Ahmed's favourite too.
0:27:42 > 0:27:45I like the top flat, actually.
0:27:45 > 0:27:49It's, er, very, very pleasant,
0:27:49 > 0:27:52very, very kind of well lit,
0:27:52 > 0:27:57and so many kind of windows everywhere,
0:27:57 > 0:28:00and very comfortable, very open.
0:28:00 > 0:28:03Somewhere you really feel comfortable in.
0:28:04 > 0:28:08The other two flats below only have windows at one end,
0:28:08 > 0:28:11but Ahmed's still managed to keep them bright
0:28:11 > 0:28:13with the ingenious light well
0:28:13 > 0:28:15running from the top of the building.
0:28:15 > 0:28:19# Quicker than a ray of light
0:28:19 > 0:28:23# Quicker than a ray of light
0:28:23 > 0:28:27# Quicker than a ray of light... #
0:28:31 > 0:28:33This is part of the atrium, they call it.
0:28:33 > 0:28:36It's a place where you get extra lighting
0:28:36 > 0:28:39for the whole building from.
0:28:39 > 0:28:42They can have an indoor garden here of some shape.
0:28:42 > 0:28:46I can see myself here sitting with a couple of chairs
0:28:46 > 0:28:49and a little table, and kind of enjoying the sun
0:28:49 > 0:28:51when the sun is coming here,
0:28:51 > 0:28:56so that's a very practical part of the ground floor here.
0:28:56 > 0:28:58Ahmed's not the only one happy with the outcome.
0:28:58 > 0:29:02So is his architect, Somas.
0:29:05 > 0:29:10I am very, very happy. It's three flats, large flats,
0:29:10 > 0:29:14rather than, you know, one house.
0:29:14 > 0:29:17It's more beneficial for my client
0:29:17 > 0:29:20because he can get a better return.
0:29:20 > 0:29:24Originally everyone said this can be only one house,
0:29:24 > 0:29:28but that wouldn't have been financially a feasible proposition,
0:29:28 > 0:29:33so we went in, tried our best, and got him three very large flats.
0:29:33 > 0:29:36He's happy. Inside, the property looks completely different
0:29:36 > 0:29:38to what it was.
0:29:38 > 0:29:40# Love
0:29:40 > 0:29:44# It's so crazy, make my heart go oops-a-daisy
0:29:44 > 0:29:47# Cos I love you inside out #
0:29:47 > 0:29:50Overall, Ahmed's spend on the property increased
0:29:50 > 0:29:54from his original budget of 70,000 to nearer 90,000.
0:29:54 > 0:29:58Added to the 56,000 he paid at auction, that's a total outlay
0:29:58 > 0:30:01of around 146,000.
0:30:04 > 0:30:08Will his hard work return him a decent profit, though?
0:30:08 > 0:30:11We asked two local property experts to give us their thoughts
0:30:11 > 0:30:13on the place.
0:30:19 > 0:30:22Well, the transformation's been immense.
0:30:22 > 0:30:25What we have here is now a great volume of space
0:30:25 > 0:30:28coupled with contemporary modern living.
0:30:28 > 0:30:33So from an overall feel, as such, it creates space, atmosphere...
0:30:33 > 0:30:36I like the open-plan space. I think that works very well,
0:30:36 > 0:30:39and the tunnel coming through the centre of the flats
0:30:39 > 0:30:41is a massive added bonus.
0:30:41 > 0:30:44I probably would have done a more luxurious finish,
0:30:44 > 0:30:46but that's from a selling point of view.
0:30:46 > 0:30:50I think the top floor, the penthouse, is probably my favourite,
0:30:50 > 0:30:53the fact that it has the most light, and the views as well.
0:30:53 > 0:30:55And I suppose, from that point of view,
0:30:55 > 0:31:00that gives you the independence that you're not close to anyone,
0:31:00 > 0:31:03as it were. You're at the top of the tree, so to speak.
0:31:03 > 0:31:06So, if Ahmed did decide to sell,
0:31:06 > 0:31:08what would he get for each individual flat?
0:31:08 > 0:31:11Remember, the total spend on the whole building,
0:31:11 > 0:31:15including the conversion work, is around 146,000.
0:31:16 > 0:31:20In my opinion, the sale value of the ground floor and first-floor flats
0:31:20 > 0:31:24would be £100,000, and with the penthouse, with the views,
0:31:24 > 0:31:29in my opinion, the resale value would be £110,000.
0:31:29 > 0:31:32The sale value of this property would be looking to achieve
0:31:32 > 0:31:36around £100,000 for both the first floor and the ground floor.
0:31:36 > 0:31:38The top floor maybe a little bit more,
0:31:38 > 0:31:41around about 100 to 110.
0:31:41 > 0:31:45That's a combined total of around 310,000,
0:31:45 > 0:31:49a massive potential profit of £164,000,
0:31:49 > 0:31:52minus the usual expenses and taxes, of course.
0:31:52 > 0:31:55What does Ahmed make of those figures?
0:31:56 > 0:31:59That's a pleasant surprise, if you like.
0:31:59 > 0:32:04It can make up for the 20 extras that I had to pay for.
0:32:04 > 0:32:07But his plan is to rent them out,
0:32:07 > 0:32:10so what do the experts think he could charge per calendar month
0:32:10 > 0:32:12for each individual flat?
0:32:14 > 0:32:17The rental market for this property is good.
0:32:17 > 0:32:23I think you'd be looking to achieve around £525 per calendar month.
0:32:23 > 0:32:25In my opinion, the apartments would rent
0:32:25 > 0:32:29for £525 per calendar month each.
0:32:29 > 0:32:33Yes. On average, that would be what I expected. That's fine, yeah.
0:32:33 > 0:32:36Those rental figures will give him a return
0:32:36 > 0:32:41of £1,575 a month, if he rents them all out,
0:32:41 > 0:32:45giving him a fabulous yield of just under 13 percent.
0:32:45 > 0:32:49So it may have taken a good while longer to complete this conversion
0:32:49 > 0:32:54than he first planned, but the future looks very bright for Ahmed.
0:32:59 > 0:33:03Well, I'm about five miles east of Manchester city centre
0:33:03 > 0:33:06in Audenshaw, famous for, amongst other things,
0:33:06 > 0:33:10its three reservoirs, built by the Manchester Corporation
0:33:10 > 0:33:14between 1877 and 1882. Now, when they built these,
0:33:14 > 0:33:18unfortunately the original hamlet of Audenshaw was lost in the waters.
0:33:18 > 0:33:22Still, they are hoping to open up this whole area to leisure pursuits
0:33:22 > 0:33:24in the not-too-distant future.
0:33:24 > 0:33:29# Well, you gotta come down to the reservoir
0:33:29 > 0:33:31# I don't care who you say you are #
0:33:31 > 0:33:35And at least in the meantime, Audenshaw will give you great access
0:33:35 > 0:33:39to the countryside as well as the city of Manchester.
0:33:39 > 0:33:43The property I'm here to see is right in the centre of Audenshaw.
0:33:43 > 0:33:46It's a popular little spot, good schools,
0:33:46 > 0:33:50and you're only 14 minutes from the centre of Manchester by train.
0:33:50 > 0:33:52I'm here to see something that sounds like good value.
0:33:52 > 0:33:56It's a mid-terrace, two bedrooms, and a guide price of 45,000 quid.
0:33:56 > 0:33:59Nice redbrick construction. Let's take a look inside.
0:33:59 > 0:34:03Well, if it's anything like as sturdy-looking on the inside
0:34:03 > 0:34:06as it is on the outside, then, we're on to a winner.
0:34:06 > 0:34:08You can't beat this cul-de-sac location.
0:34:08 > 0:34:10There's a park at the bottom and a shop at the top.
0:34:10 > 0:34:13It's very attractive.
0:34:13 > 0:34:16Nice little entrance porch, keep the cold and the draughts out.
0:34:16 > 0:34:19Into your front living room.
0:34:19 > 0:34:21Very, very standard layout, I have to say.
0:34:21 > 0:34:24Bit of damp on that front wall, rising damp.
0:34:24 > 0:34:29Not that difficult to resolve with a chemical damp-proof course,
0:34:29 > 0:34:31but you do want to check the floorboards
0:34:31 > 0:34:34to make sure they haven't got rotten in the process.
0:34:34 > 0:34:38Stairs where they should be in this kind of property, in the middle,
0:34:38 > 0:34:41then through into your kitchen. Well, as you can see,
0:34:41 > 0:34:46it does need some work, so to speak. But it's a good-size space,
0:34:46 > 0:34:48nice big window so you've got lots of light,
0:34:48 > 0:34:51and again, fairly traditional for this kind of property,
0:34:51 > 0:34:55the loo, the bathroom, out the back. But people round here,
0:34:55 > 0:34:58these kind of properties, it's kind of OK. It's accepted.
0:34:58 > 0:35:01What's less acceptable, though, is the state of that bathroom.
0:35:01 > 0:35:05The tiles and bathroom suite are way beyond repair,
0:35:05 > 0:35:10so I think you have to cough up for a refit in here and in the kitchen.
0:35:10 > 0:35:13So, upstairs, no great surprises - two bedrooms,
0:35:13 > 0:35:17one at the front, one at the rear. You know, reasonable sizes,
0:35:17 > 0:35:20and in terms of the internal layout of this place,
0:35:20 > 0:35:23I don't think there's a lot you would do.
0:35:23 > 0:35:27Move the bathroom, perhaps? I really don't think it's worth it.
0:35:27 > 0:35:29The only thing you will have to factor in
0:35:29 > 0:35:32is some money to sort out the central-heating system
0:35:32 > 0:35:36and the hot-water supply, because it's clearly a little bit dated.
0:35:36 > 0:35:38Even with the boiler out of the way,
0:35:38 > 0:35:42I can't see how you would squeeze in a bathroom on this floor
0:35:42 > 0:35:44without making one of the bedrooms far too small.
0:35:44 > 0:35:49I wonder if the proportions are as restricted outside?
0:35:49 > 0:35:53At the rear of the property you've got a little back yard,
0:35:53 > 0:35:55and I'm just sitting here thinking,
0:35:55 > 0:35:59is there any point in putting an extension on this property?
0:35:59 > 0:36:01You could possibly do it, but in this instance,
0:36:01 > 0:36:04I just don't think it's worth it.
0:36:04 > 0:36:07It's one of those cases where you just leave well alone.
0:36:07 > 0:36:10With a guide price of only 45,000,
0:36:10 > 0:36:14is a local property expert as happy with the property as I am?
0:36:14 > 0:36:18The property is a great first-time-buyer property
0:36:18 > 0:36:21or buy-to-let property. It's got two good bedrooms,
0:36:21 > 0:36:25and the bathroom extension... I would move the bathroom upstairs
0:36:25 > 0:36:27and put the kitchen into the extension,
0:36:27 > 0:36:30so you'd have two great reception rooms, a kitchen,
0:36:30 > 0:36:33one big main bedroom, a smaller second bedroom,
0:36:33 > 0:36:37and a bathroom. But it's ideal for the first-time buyer, and it's in a lovely position.
0:36:37 > 0:36:40And, if it's bought as an investment,
0:36:40 > 0:36:43what would he expect to get for this one as a rental?
0:36:43 > 0:36:46'To rent this property, we would expect to achieve
0:36:46 > 0:36:49'around £450 per calendar month.'
0:36:49 > 0:36:52Would it do equally well on the sales market
0:36:52 > 0:36:55once completely refurbished?
0:36:55 > 0:36:57If we were selling this property,
0:36:57 > 0:37:01we'd expect to get between £85,000 and £90,000,
0:37:01 > 0:37:06but if it was done really well, to a high standard, £90,000.
0:37:06 > 0:37:08Well, this is the kind of house that would be perfect
0:37:08 > 0:37:12for a first-time buyer, or could well form the bedrock
0:37:12 > 0:37:17of a property-investment portfolio. Not too much work to be done, and rent out ten-a-penny.
0:37:17 > 0:37:20Let's see who bought it when it went under the hammer.
0:37:20 > 0:37:25Lot number 18, two-bedroom terrace. Got a phone bid on this one.
0:37:25 > 0:37:29What's this worth? 45? 45,000? £45,000 I have.
0:37:29 > 0:37:33Do I see 50? 50 bid. At 50,000. Back on the phone, at £50,000.
0:37:33 > 0:37:37Do I see 51? Your bid at 51. New bid at 51.
0:37:37 > 0:37:40At 52. At 52. At 53. At 53,000.
0:37:40 > 0:37:4553. 54. 54. 55. 55. Your bid, at 55,000.
0:37:45 > 0:37:5056. At 56,000. 57. 57 we're at. Do I see 58?
0:37:50 > 0:37:55At 58,000. 59, anywhere? At 58,000.
0:37:55 > 0:37:58At 58. 58 and a half, then?
0:37:58 > 0:38:00OK. It's going to be sold at 58,000.
0:38:00 > 0:38:03Any advance on £58,500?
0:38:03 > 0:38:06Rolls off the tongue. At 58 and a half, then, for the first time.
0:38:06 > 0:38:09At 58 and a half for the second time.
0:38:09 > 0:38:11Are we all done at 58,500?
0:38:11 > 0:38:15There we go. Paddle 331, telephone bid.
0:38:15 > 0:38:19# Hanging on the telephone #
0:38:19 > 0:38:23It's sold to telephone bidder Joe, a 22-year-old first-time buyer.
0:38:23 > 0:38:27He got this property for £58,500,
0:38:27 > 0:38:32£13,500 over the guide price, and I went to meet him.
0:38:32 > 0:38:35- Joe, good to meet you. - Good to meet you.- Congratulations.
0:38:35 > 0:38:38- Thank you.- You were on the other end of the telephone.
0:38:38 > 0:38:40- I was, yeah.- How was that?
0:38:40 > 0:38:44- Very nervous. Very nerve-racking. - What made you make the decision
0:38:44 > 0:38:47- to make a telephone bid rather than be at the auction?- At work.
0:38:47 > 0:38:50- Oh, right. - I was working at the time.
0:38:50 > 0:38:53- Nipped out for a coffee break, and...- Yeah.
0:38:53 > 0:38:56- ..bought a house!- Yeah. - Tell me about you. What do you do?
0:38:56 > 0:39:01I'm a civil engineer. I graduated from university about 18 months ago,
0:39:01 > 0:39:05so I've been working in Manchester on the new Manchester Metrolink.
0:39:05 > 0:39:07So you've bought this for a place to live?
0:39:07 > 0:39:10Initially, yeah. I was looking to rent somewhere,
0:39:10 > 0:39:13and I started looking at the price of rent,
0:39:13 > 0:39:16and I saw this place come up on auction,
0:39:16 > 0:39:18and the price seemed about right, and I thought,
0:39:18 > 0:39:22if I can make them figures work, it could be a good investment.
0:39:22 > 0:39:25I came for a quick look round. It seemed quite big,
0:39:25 > 0:39:28good rooms, and I think the work's quite manageable.
0:39:28 > 0:39:32- I think I'll be able to take it on. - Well, being a civil engineer,
0:39:32 > 0:39:35- you must be vaguely practical. - I'd like to think so.
0:39:35 > 0:39:38- I'd like to think so. - Build bridges and things,
0:39:38 > 0:39:41but a bit of decorating might be a bit of a challenge.
0:39:41 > 0:39:45Yeah. It might be the details that catch me out.
0:39:45 > 0:39:48- Is this the first house you've bought?- First house, yeah.
0:39:48 > 0:39:51How do you feel now you've spent the money?
0:39:51 > 0:39:54I'm pleased with it, yeah. The more I come in,
0:39:54 > 0:39:58I think I've made the right decision. Obviously time will tell,
0:39:58 > 0:40:02once I've done the work, but I'm confident it's a good purchase.
0:40:02 > 0:40:04So, a good solid house.
0:40:04 > 0:40:07What does this civil engineer have planned
0:40:07 > 0:40:10for his very first property purchase?
0:40:10 > 0:40:14'Well, first of all I'm just going to strip everything back,
0:40:14 > 0:40:16'um, all the wallpapers.
0:40:16 > 0:40:19'The kitchen itself will need taking out.'
0:40:19 > 0:40:22The bathroom's not in too bad a state,
0:40:22 > 0:40:26so I hope to save money by not spending too much on the bathroom.
0:40:26 > 0:40:29The bedrooms themselves, the wallpaper, again,
0:40:29 > 0:40:33stripping back. I'm going to get rid of them wardrobes.
0:40:33 > 0:40:35They're a bit outdated these days.
0:40:35 > 0:40:39There's an immersion heater upstairs. It's quite a large cupboard,
0:40:39 > 0:40:42so I'll try and get rid of that and replace it with a combi boiler.
0:40:42 > 0:40:45I think I could make quite a bit of space from there.
0:40:45 > 0:40:49Right. I noticed a bit of damp on the front elevation of the house.
0:40:49 > 0:40:52- Have you looked at that? - Yeah. It seems to have dried out,
0:40:52 > 0:40:55so hopefully it shouldn't be too much of a problem.
0:40:55 > 0:40:58There is some water marks from the guttering,
0:40:58 > 0:41:01so I may need to replace them, but I'll be stripping it back
0:41:01 > 0:41:03and seeing what the problems are.
0:41:03 > 0:41:07- Is the plan to do the work yourself? - Yeah, as much as I can.
0:41:07 > 0:41:09Hopefully my friends will help me out,
0:41:09 > 0:41:12but that's the only way I can do it, to save on labour costs.
0:41:12 > 0:41:16- Cos what's your budget? - Budget's about 8,000.
0:41:16 > 0:41:19Right. That's not a bad budget for this kind of property.
0:41:19 > 0:41:23The bits that will take up the money is if I'm looking at rewiring,
0:41:23 > 0:41:27obviously the boiler, and also windows and doors,
0:41:27 > 0:41:29so there's some quite large expenses in there
0:41:29 > 0:41:33that I need to take into account.
0:41:33 > 0:41:35To help his money stretch even further,
0:41:35 > 0:41:38Joe will move into the property while he renovates it.
0:41:38 > 0:41:40So goodbye, social life for a bit, then.
0:41:40 > 0:41:43Do you think this might give you the property bug?
0:41:43 > 0:41:47I'll find out in a few months' time. I'm quite excited to do the work,
0:41:47 > 0:41:52so hopefully I'll keep that... carry on that excitement,
0:41:52 > 0:41:55and it'll be something I want to do again in the future.
0:41:55 > 0:41:57What's the timescale? As quick as poss,
0:41:57 > 0:42:00- cos you'll be living here, but roughly?- Four to six months.
0:42:00 > 0:42:03Right. You'll be doing it in your spare time.
0:42:03 > 0:42:06Because I've got a job, which obviously takes priority,
0:42:06 > 0:42:08and this will be my spare time.
0:42:08 > 0:42:12Congratulations. It's good to see you get on the property ladder.
0:42:12 > 0:42:15- I look forward to seeing how you get on.- Thank you. I will.
0:42:15 > 0:42:21Hopefully Joe won't need to call on too much of his civil-engineering degree to sort this place out.
0:42:21 > 0:42:24I don't think there are too many structural issues.
0:42:24 > 0:42:27And it's great that he bought his first property under the hammer.
0:42:27 > 0:42:30You can find out how he gets on sorting it out later in the show.
0:42:33 > 0:42:36You never know quite what you'll have to face
0:42:36 > 0:42:38when you start your renovations.
0:42:38 > 0:42:41Things don't always go to plan in the property world.
0:42:41 > 0:42:43No. So, have our new owners put hammer to hail,
0:42:43 > 0:42:46or has it all gone Pete Tong?
0:42:48 > 0:42:50Back to Watford in Northwest London now,
0:42:50 > 0:42:53to see how Rudra got on with the church premises.
0:42:53 > 0:42:56The property was built as a place of worship in the '60s.
0:42:56 > 0:42:59Although it wasn't exactly a cathedral -
0:42:59 > 0:43:01no stained glass or altars here -
0:43:01 > 0:43:06this hall did offer a very flexible business opportunity.
0:43:06 > 0:43:10Property developer Rudra saw the potential the building had.
0:43:10 > 0:43:13He'd dreamed of running a nursery since his son Reuben was born,
0:43:13 > 0:43:16and they'd struggled to find a local nursery for him.
0:43:16 > 0:43:20But, never having run anything like this before, there were risks attached.
0:43:20 > 0:43:25I've got some experience. We've done conversions and new builds,
0:43:25 > 0:43:28but nothing in the commercial sectors such as this,
0:43:28 > 0:43:32and involving, you know, other people's children, primarily.
0:43:32 > 0:43:35Rudra planned to extend at the rear of the property,
0:43:35 > 0:43:38to add a kitchen and a quiet room for babies.
0:43:39 > 0:43:42The couple paid 245,000 for the property,
0:43:42 > 0:43:47and put aside a budget of £60,000 to refurbish the interior
0:43:47 > 0:43:51and build the addition. They thought it would take three to four months.
0:43:53 > 0:43:56We've come back just under nine months later to see.
0:43:56 > 0:43:59Will it be kiddie heaven or planning hell?
0:43:59 > 0:44:02SONG: "Kids" by Kylie Minogue (with Robbie Williams)
0:44:02 > 0:44:05# And we'll paint by numbers
0:44:05 > 0:44:07# Till something sticks
0:44:07 > 0:44:11# Don't mind doing it for the kids #
0:44:11 > 0:44:15The once-drab exterior is now unrecognisable
0:44:15 > 0:44:19as the churchyard makes way for a nursery yard.
0:44:20 > 0:44:23But there's no extension.
0:44:24 > 0:44:27Since you were last here we applied for planning,
0:44:27 > 0:44:30and initially they said we could have the extension
0:44:30 > 0:44:35as we proposed. Subsequently, because of the traffic-flow issues,
0:44:35 > 0:44:38they suggested that we have the nursery up and running,
0:44:38 > 0:44:41and then do the extension.
0:44:41 > 0:44:44The extension would have been through the rear patios.
0:44:44 > 0:44:47That would have created a dedicated baby room
0:44:47 > 0:44:50to care for about six babies,
0:44:50 > 0:44:54but unfortunately we now have to bring it into the main hall,
0:44:54 > 0:44:57and then later move it across once planning is attained.
0:44:57 > 0:45:00So Rudra decided to withdraw the application
0:45:00 > 0:45:05and follow the council's advice to reapply at a later date.
0:45:05 > 0:45:08But he has done the groundwork for a future extension.
0:45:08 > 0:45:10We've gone with the existing footprint,
0:45:10 > 0:45:14but we've put the foundations in and the boundary walls in place,
0:45:14 > 0:45:18so when we do get planning, there won't be a great deal of disturbance.
0:45:18 > 0:45:22The nursery can carry on whilst the extension's being done.
0:45:22 > 0:45:26Although he wasn't able to add the extra space he wanted,
0:45:26 > 0:45:29Rudra has not kept his imagination in check.
0:45:29 > 0:45:32This former church is now well on the way to becoming
0:45:32 > 0:45:35the perfect playground for pint-sized people.
0:45:38 > 0:45:40If you remember, when we bought the property,
0:45:40 > 0:45:44behind here where we are standing was the entrance lobby.
0:45:44 > 0:45:48This side we had some toilets, three toilets, if I recollect,
0:45:48 > 0:45:50and on this side was just blank.
0:45:50 > 0:45:54We've converted this side to form the offices,
0:45:54 > 0:45:57and we've changed the layout of the toilets around
0:45:57 > 0:45:59to face the main hall,
0:45:59 > 0:46:03and we've got the children's loo and a store room,
0:46:03 > 0:46:07which has now become the kitchenette.
0:46:07 > 0:46:09This hall has remained pretty much the same,
0:46:09 > 0:46:12apart from the patios leading out to the play area.
0:46:12 > 0:46:16This area would obviously be subdivided now
0:46:16 > 0:46:20to form the children's play area, the two-to-threes,
0:46:20 > 0:46:22and three-to-fives,
0:46:22 > 0:46:25and also we will incorporate, on this corner,
0:46:25 > 0:46:29a children's rest area too. Now the work's finished.
0:46:29 > 0:46:33The transformation's complete, and I'm extremely pleased with the results.
0:46:33 > 0:46:35The original idea for the nursery business
0:46:35 > 0:46:38grew out of Rudra and his wife Bhama's experience
0:46:38 > 0:46:43of trying to find quality childcare for their son Reuben,
0:46:43 > 0:46:44and it's been a family affair
0:46:44 > 0:46:47to get the church conversion to this stage.
0:46:47 > 0:46:50We have our dinner, then we sit down, go through the numbers.
0:46:50 > 0:46:53I do the spreadsheets and he writes the emails.
0:46:53 > 0:46:58We have it pretty much sorted out, who does what,
0:46:58 > 0:47:02and, you know, as long as I'm in bed by 11, it's all right.
0:47:02 > 0:47:06'Actually, I have to give all the credit to my husband.
0:47:06 > 0:47:09'It's pretty much all his idea - the water pump, the bridge,
0:47:09 > 0:47:13'even the outdoor space and the decking.'
0:47:13 > 0:47:17We've done our children's toilets... It's quite special.
0:47:17 > 0:47:19I haven't seen any nursery I've been to look at
0:47:19 > 0:47:22have toilets like that, and we didn't have much.
0:47:22 > 0:47:24We've done the best we could with what we had.
0:47:24 > 0:47:29Rudra and Bhama bought the property for 245,000,
0:47:29 > 0:47:32and completed the renovation work for their original budget
0:47:32 > 0:47:35of £60,000, bringing their total outlay
0:47:35 > 0:47:37to 305,000.
0:47:38 > 0:47:43Time to hear what two local property experts think of their efforts.
0:47:44 > 0:47:49Nurseries are hard to come by. D1 use is difficult to get sometimes.
0:47:49 > 0:47:51You're competing with other D1 users.
0:47:51 > 0:47:54This is a very high-density neighbourhood,
0:47:54 > 0:47:58and I think the catchment area of the nursery will be excellent, probably.
0:47:58 > 0:48:01There's always demand for nursery places across the board,
0:48:01 > 0:48:06and especially in a residential area like this.
0:48:06 > 0:48:09Well, that's a big thumbs-up for the nursery idea.
0:48:09 > 0:48:12But what could the building now be worth?
0:48:13 > 0:48:17A resale value on a property of this type
0:48:17 > 0:48:21I would put somewhere in the region of £250,000.
0:48:21 > 0:48:24Personally I see the value of this property at £200,000,
0:48:24 > 0:48:28and as a going concern, I do not see the value increasing dramatically,
0:48:28 > 0:48:30if at all, at this time.
0:48:30 > 0:48:34Those valuations would mean a loss of between 105,000
0:48:34 > 0:48:37and 55,000 before costs and expenses.
0:48:37 > 0:48:40But it was never Rudra's intention to sell,
0:48:40 > 0:48:43so he's not too worried about those estimates.
0:48:43 > 0:48:46'When we bought it, the fallback option was to,
0:48:46 > 0:48:49'if the business didn't succeed, convert it into two houses,
0:48:49 > 0:48:54'so we knew the land was worth about stamp duty, which is £250,000.'
0:48:54 > 0:48:57Although the property has not held its value,
0:48:57 > 0:49:01Rudra and Bhama have a financial safety net in the worth of the land.
0:49:01 > 0:49:04They have an agreement in principle from Ofsted
0:49:04 > 0:49:07to open as a nursery, and are just awaiting the final legal checks
0:49:07 > 0:49:10on their staff. They hope to start taking bookings
0:49:10 > 0:49:13in the next month or so.
0:49:13 > 0:49:16If this goes well, we're hoping to replicate this.
0:49:16 > 0:49:19We want a boutique type of nursery,
0:49:19 > 0:49:22not for the masses, and keep the numbers down
0:49:22 > 0:49:26so it gives a homely feel. Hopefully we can replicate another one soon.
0:49:29 > 0:49:32We're back in Audenshaw near Manchester
0:49:32 > 0:49:35to see how 22-year-old engineering graduate Joe got on
0:49:35 > 0:49:38with his very first-ever property buy.
0:49:38 > 0:49:42Externally the two-bedroom mid-terrace was in good shape.
0:49:42 > 0:49:46Internally the layout could be a drawback to potential buyers.
0:49:46 > 0:49:49Not everyone likes a toilet off the kitchen.
0:49:49 > 0:49:52But these are small but perfectly formed houses,
0:49:52 > 0:49:54which can be difficult to alter.
0:49:54 > 0:49:57Civil engineer Joe might be more used to building bridges
0:49:57 > 0:50:00than stripping bathrooms, but he was willing to muck in
0:50:00 > 0:50:03to help keep his costs down.
0:50:03 > 0:50:05I'll do as much of the work as I can myself.
0:50:05 > 0:50:07Hopefully my friends will help me out.
0:50:07 > 0:50:10That's the only way I can do it, to save on labour costs.
0:50:10 > 0:50:15First-time buyer Joe paid 58,500 for the house,
0:50:15 > 0:50:17which was right at the top of his budget.
0:50:17 > 0:50:21He knew it needed rewiring amongst many other things,
0:50:21 > 0:50:25and he'd allowed just £8,000 for the refurbishment.
0:50:27 > 0:50:30We've come back four months later
0:50:30 > 0:50:34to see if Joe has made his very first house a home.
0:50:42 > 0:50:45Outside, the old wooden windows have been replaced
0:50:45 > 0:50:48and made watertight, but the house is not finished yet.
0:50:48 > 0:50:51Joe has a full-time job, so he works long hours,
0:50:51 > 0:50:55and only has evenings and weekends to do the work here.
0:50:55 > 0:50:58But he's on his way to converting this neglected mid-terrace
0:50:58 > 0:51:00into a contemporary home.
0:51:00 > 0:51:03The past three months we've got quite a lot done.
0:51:03 > 0:51:06We've been able to put new double glazing throughout the house.
0:51:06 > 0:51:09It's had a full rewire. We've replaced the boiler
0:51:09 > 0:51:12and put a combi boiler in downstairs so we could get a bit of space.
0:51:12 > 0:51:15The main job now is decorating the whole house,
0:51:15 > 0:51:18flooring and wallpaper, and then we can move in the furniture.
0:51:18 > 0:51:21So, doing the work that this house needed
0:51:21 > 0:51:24meant working up from the most basic level.
0:51:28 > 0:51:31In the kitchen, we started by completely ripping out the kitchen.
0:51:31 > 0:51:35We've ripped out all the tiles and all the wallpaper.
0:51:35 > 0:51:37We then started by replastering the kitchen.
0:51:37 > 0:51:40We've also added a new combi boiler in here,
0:51:40 > 0:51:43so we could take out the immersion heater upstairs
0:51:43 > 0:51:46to create more room. We've got new radiators.
0:51:46 > 0:51:48The kitchen we've put in is an ex-display one,
0:51:48 > 0:51:52which saved a bit of money, which has helped my budget quite a bit,
0:51:52 > 0:51:54especially the price of some of the kitchens.
0:51:54 > 0:51:57We've lowered the ceiling here as well,
0:51:57 > 0:51:59which has enabled us to put downlighting in,
0:51:59 > 0:52:02improve the lighting. It had been quite a tall room,
0:52:02 > 0:52:06and also put some insulation in. We're now just waiting on appliances,
0:52:06 > 0:52:09so then we'll have a functional kitchen,
0:52:09 > 0:52:12then after that, a bit of decorating to finish it off.
0:52:12 > 0:52:15Joe made the decision not to move the bathroom upstairs.
0:52:15 > 0:52:19In addition, he's managed to save himself even more money
0:52:19 > 0:52:21by keeping the white suite.
0:52:21 > 0:52:25In the bathroom I installed a new shower direct from the combi boiler,
0:52:25 > 0:52:28taking away the old electric. I re-tiled the bathroom.
0:52:28 > 0:52:32The biggest problem, I've found, has been time,
0:52:32 > 0:52:34not just for me to do the work
0:52:34 > 0:52:36but even to find the people to come in to do the work,
0:52:36 > 0:52:41and organise them, so I was, like, juggling two jobs at once.
0:52:45 > 0:52:47So no time to himself this summer.
0:52:47 > 0:52:50Joe has discovered that doing up your own property
0:52:50 > 0:52:52is indeed a full-time job,
0:52:52 > 0:52:57and one that has had to fit around his other full-time job.
0:52:57 > 0:53:00It's been hard work after work, knowing other people can go home
0:53:00 > 0:53:02and chill out or go for a drink or whatever,
0:53:02 > 0:53:07and try to keep yourself motivated to finish work at six, seven o'clock
0:53:07 > 0:53:11and then come up here to start tiling or painting or whatever it may be,
0:53:11 > 0:53:14particularly on the weekends after a long week.
0:53:14 > 0:53:16Sometimes it's the last thing you want to do,
0:53:16 > 0:53:18but at the end of it, it will have been worth it.
0:53:18 > 0:53:21Upstairs there were already two good-size bedrooms.
0:53:21 > 0:53:24Now there's just a little bit more.
0:53:25 > 0:53:29In the main bedroom we stripped all the wallpaper back.
0:53:29 > 0:53:32We've broken away some rotting plaster around the windows,
0:53:32 > 0:53:36replaced the windows with new double-glazing.
0:53:36 > 0:53:39We've also lowered the ceiling, allowing us to reinsulate it there,
0:53:39 > 0:53:43and also provide downlighting to improve the lighting in the room.
0:53:43 > 0:53:46We've started to decorate. It just needs its final coat of paint,
0:53:46 > 0:53:50and obviously we're going to wallpaper this wall here.
0:53:50 > 0:53:54Er, we've also been able to put in a new en suite
0:53:54 > 0:53:58by knocking through the wall to the cupboard where the immersion heater was,
0:53:58 > 0:54:01and I'm looking forward to having an en suite upstairs.
0:54:01 > 0:54:03Sounds like he's ready to move in.
0:54:03 > 0:54:06But having an en suite was not in his original plans
0:54:06 > 0:54:09or his original budget.
0:54:09 > 0:54:12'Er, my original budget was 8,000.'
0:54:12 > 0:54:16When complete, that will be 12,000.
0:54:16 > 0:54:20It's increased due to extra things that we've done,
0:54:20 > 0:54:23including the en suite. One of our main problems has been my time
0:54:23 > 0:54:26to be able to do it, with work,
0:54:26 > 0:54:28so we have had to get some people in a few times
0:54:28 > 0:54:32to do some of the work which I had originally planned to do myself.
0:54:32 > 0:54:35Joe bought the house for £58,500,
0:54:35 > 0:54:38and spent £12,000 on refurbishing it,
0:54:38 > 0:54:41bringing his total outlay to 70,500.
0:54:41 > 0:54:45Time to find out what two local estate agents think of his work.
0:54:45 > 0:54:49What I like about what he's done so far,
0:54:49 > 0:54:51the kitchen's really nice.
0:54:51 > 0:54:54I think the en suite is a nice touch in the main bedroom.
0:54:54 > 0:54:58Again, most people renting or buying this type of house
0:54:58 > 0:55:01would be a couple or a single person,
0:55:01 > 0:55:03so the bathroom in the bedroom is a nice touch.
0:55:03 > 0:55:07It's a terraced house, so there's not a lot more you can do to it.
0:55:07 > 0:55:10The property, I feel, would appeal to first-time buyers.
0:55:10 > 0:55:12It would appeal to them on the basis
0:55:12 > 0:55:15that it's going to be at the lower end of the marketplace.
0:55:15 > 0:55:18Around here there's a few semi-detached properties,
0:55:18 > 0:55:21but this would be perfect for them because there's no work needed,
0:55:21 > 0:55:24and will be an affordable price.
0:55:24 > 0:55:26What could the property sell for?
0:55:26 > 0:55:30The resale value of this property, when it's completely finished,
0:55:30 > 0:55:34I would put between £80,000 and £85,000.
0:55:34 > 0:55:37Once completed, I would look to market this property
0:55:37 > 0:55:39offers in the region of £85,000.
0:55:39 > 0:55:42Those valuations would give Joe a profit of between 9,500
0:55:42 > 0:55:46and £14,500 before costs and expenses.
0:55:48 > 0:55:50That's pretty much what I was expecting,
0:55:50 > 0:55:54so I'm quite happy with that, yeah.
0:55:54 > 0:55:57Although Joe's going to live here for the short term,
0:55:57 > 0:56:00longer term, his work may take him anywhere in the UK,
0:56:00 > 0:56:04so what do the experts estimate for rentals?
0:56:04 > 0:56:07The rental valuation I'd put on this when it is finished
0:56:07 > 0:56:10is between £475 per calendar month
0:56:10 > 0:56:13and £520 per calendar month.
0:56:13 > 0:56:16Once completed, I would look to rent this property
0:56:16 > 0:56:17at £450 per calendar month.
0:56:17 > 0:56:20Yeah. I think that's pretty much what I was expecting.
0:56:20 > 0:56:23I think I was expecting around £475,
0:56:23 > 0:56:26so to get even higher than that would be a bonus.
0:56:26 > 0:56:30With Joe very nearly ready to move into his new home,
0:56:30 > 0:56:33is this the start of his very own property portfolio?
0:56:33 > 0:56:37It's been a success as in I've finally got my foot on the property ladder.
0:56:37 > 0:56:40If I'd gone for a finished house, I couldn't have afforded it.
0:56:40 > 0:56:43This way I've been able to get my first property.
0:56:43 > 0:56:46It's also been a reasonably enjoyable experience,
0:56:46 > 0:56:50stressful at times, but I'd definitely do it again.
0:56:52 > 0:56:56We hope you've enjoyed watching, and learnt something along the way.
0:56:56 > 0:56:59Join us next time for more auction-room action
0:56:59 > 0:57:02- on Homes Under The Hammer. - See you then.- Goodbye.- Goodbye.
0:57:02 > 0:57:06Subtitles by Red Bee Media Ltd
0:57:06 > 0:57:10E-mail subtitling@bbc.co.uk