Episode 81 Homes Under the Hammer


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Episode 81

Martin Roberts and Lucy Alexander visit a two-bedroom semi in Netherton, a flat in south London and a former shop in Tiverton. Find out who bought them at auction.


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Transcript


LineFromTo

Hello. When you look back over time,

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the chances are you've never lost money on property.

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That's because over the years it's been a rock-solid investment, despite the downturn.

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-So where can you find yourself a bargain?

-At an auction, of course!

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Whether you're buying property as an investment or as somewhere to live,

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you want to make sure you've got a good deal.

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The question today is, did the buyers manage that? Here's what they bought.

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I'm in Netherton, Liverpool,

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where I hold a bit of a candle for this two-bedroom semi.

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Interesting that these aren't really connected to electricity.

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They're purely for decoration and lovely they are.

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In Walworth, South London, elbow grease was in order for whoever bought this one-bed flat.

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Quite a bit of work to do, little bit grubby,

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but it could really scrub up well.

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And in Tiverton, Devon, the downstairs of this former shop is in a terrible state.

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And as for upstairs...

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I'm judging by first impressions...it's equally dreadful.

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All these properties have been sold at auction.

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

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Yours, thank you.

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So, where do you think I am today?

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The south coast? Devon? Cornwall, perhaps? Maybe Brighton?

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No. Believe it or not, I'm just outside Liverpool.

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This is the estuary of the Mersey

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and it's also the location for one of Antony Gormley's famous sculptures -

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Another Place.

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This fantastic spectacle consists of 100 cast-iron life-size figures.

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They were built to symbolise the contrasting emotions of hope and sadness

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associated with immigration.

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So will today's property fill me with hope or sadness?

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I'm just north of the city centre in an area called Netherton.

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Very popular with families, and generations seem to stay here.

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I'm here to see this.

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It's a semi-detached house at the guide price of £39,000

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and for that you also get a rather impressive monkey puzzle tree in the garden.

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The front has lots of foliage growing close to the house.

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Whilst a bit of greenery can add to a property's kerb appeal,

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this has a jungle-like quality, which is perhaps hiding

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potentially valuable space for off-street parking.

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Through the front door we've got this useful little porch area,

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somewhere to hang your coat and put your shoes, store the kids' bikes.

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Stairs up to the bedrooms, living room over to that side.

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It's a good-sized space, but what is going on with that decoration?

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Really interesting! A bit dark as you walk through here, but then through into the kitchen.

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It's not a huge space and it, uh...

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Definitely in need of modernisation.

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While you do that, I'd consider extending out into this,

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which is like a little ante-area. Door there through to your garage,

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but by taking out some of this wall you'd make a nice kitchen/living area.

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Lots of work to be done, but it's not a bad canvas on which to paint.

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There is potential for more space here.

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If you were to utilise the garage you could create an extra room.

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That's worth considering, especially if this was bought as a home rather than to sell on or rent out.

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Though clearly there is bits of decorations in this house which is possibly not to everyone's taste.

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These aren't actually connected to any electricity.

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They're purely for decoration and lovely they are too.

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More interestingly, the room itself, at some stage, has been converted to create one big space.

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As I said before, I really like it.

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Not quite sure what's going on with the ceiling!

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There seems to be some kind of soundproofing boards up there.

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But whatever. It's another refurbishment job,

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but from what I can see so far, it's mostly just cosmetic. Which is good.

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It wouldn't take much to get the downstairs of this two-bedroom semi sorted out.

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But can the same be said for upstairs?

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Upstairs, and two really good-sized double bedrooms, but that's not the most interesting bit.

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Look at this. The bathroom, complete with flies.

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We need to get some fly spray there first of all.

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It's clearly in a bit of an interesting, old state,

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but maybe we can take a bit of design influence from this.

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Pink and black. I like that. Very Art Deco 1930, so maybe retain that.

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But apart from that, get rid of the suite.

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It's not a bad-sized space.

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But gut it...and you'd have quite a nice room.

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But unfortunately there are no more Art Deco rooms to be found,

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just some evidence of damp in one of the bedrooms.

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That means look at the roof would be first on my to-do list.

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Soldiering on...

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Out the back there are more trees, again, very close to the house.

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It looks run down, but not that bad.

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We asked along someone from the auction house

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that sold the property with a guide price of £39,000.

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Good property, not too much wrong with it.

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It just needs a little bit of TLC, modernisation, new bathroom,

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kitchen, needs a re-wire. Windows are already in, front door, front and rear gardens both need doing,

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but probably talking about £15,000-£20,000 total spend.

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What could the place be worth as a rental?

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This property would achieve somewhere around £475 per calendar month.

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What could it sell on for once fully refurbished?

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The sales market in this area has picked up in the last six months.

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The market had gone up by 20%. But at the moment we're looking somewhere between £80,000-£85,000.

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Well, a nice enough house, but effort and money needs to spent to sort it out.

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Let's hope there was no monkey business when it went under the hammer.

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Start me at £40,000 for this. £30,000. Let's get on. £30,000.

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Bid me 30.

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30 at the back, then.

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At 30. I was wondering if you were going to start it off. Not a nose scratch this time.

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31, 32, 33, 34...35.

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36. 35, the lady's bid. 500, sir?

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36. 500?

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£36,000. 37.

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500, 38.

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500, 39.

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500...

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30... 500.

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£40,000? 500?

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500. 41. 500.

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42. 500.

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43. 500.

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44. 500. 45.

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500. 46.

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500. 47. 500. 48.

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47,500 at the back now.

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At £47,500 for the first time.

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47,500 for the second time. To the very back of the room.

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For the third and final time, it's going to be sold to the back of the room at £47,500.

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Yours, thank you.

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And with their successful bid of £47,500, it was husband and wife team Mick and Bernie.

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Mick's a self-employed road worker

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and Bernie helps with the books and admin. I met up with Bernie

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back at the property to find out about their plans.

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-Bernie, congratulations.

-Thank you.

-Nice to meet you.

-Nice to meet you.

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-Tell me why you wanted to buy this place.

-For me daughter, really.

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We saw it on the internet.

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And she was looking for somewhere

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-and we phoned up and the auction was the next day.

-Oh, wow!

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So we ran along to the auction, didn't think we'd get it,

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didn't think for one minute we'd get it, and we did.

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-Right.

-And this is what we've got.

-There we are.

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-How much chance did you have to look round before you bought it?

-Didn't.

-HE GASPS

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-Not at all?

-No, and I know that's naughty,

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but no, cos we only found out it was in the auction the day before.

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It was too late to do anything, we just went and bid.

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-And what about the legal pack? Did you get a chance to read that?

-No.

-No?

-No.

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HE GASPS

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I know. And I watch your programme all the time

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and you always shout at people for not reading the legal pack,

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but it was too late to get hold of it.

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But, saying that, we live...

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I live around the corner, I was born in the next street,

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so I know the house, I know the history of the house,

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so it wasn't really an issue, the legal pack.

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So, in Bernie's case, her local knowledge might go some way

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to making up for not reading the legal pack.

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But I can't stress enough how important it is

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when buying at auction to know what the potential pitfalls are,

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otherwise it could result in an expensive mistake.

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So what does your daughter think?

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She's delighted, to be honest, delighted. Yeah.

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She came round with us and had a look. At first it was a bit "er...",

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but once we explained what was going to be done,

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the alterations that were going to be made, she was quite happy.

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-And it's a place for her to live?

-Yes.

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So a real leg on the property ladder, then?

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Yeah, cos otherwise she hasn't got much chance,

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so we just thought we'd give her a little lift up.

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-So were you happy with what you paid?

-Yeah, yeah.

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I thought my husband would go a little bit higher.

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In fact, I'm sure he would've done, but I'd warned him on the way there,

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"No more than 50,000," and he was quite calm during the auction.

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So, yeah, what we paid, I thought, was a fair price.

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Bernie plans to renovate the property,

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including rewiring and installing central heating.

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She'll also re-plaster throughout and install a new bathroom

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and kitchen, as well as new doors, frames and floorboards.

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-What's the budget for the work?

-We've got 20,000.

-OK.

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-That's reasonable.

-We've said 20.

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My daughter Siobhan's hoping to turn the garage into a room.

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She's extending the kitchen out into the garage,

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but leaving a small area at the other end.

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She's having a window put in and a small room there.

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That's a good way of using that space,

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and will make a difference to the kitchen area, too.

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What are the plans for the garden

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and those trees and plants that are close to moving into the house?

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Very close. That's something we'll have to get a tree surgeon onto,

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to look at that tree and see what...

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It'll have to come out, cos she's having French doors.

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And obviously, the close proximity,

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the doors probably wouldn't open, it's that close.

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So that's got to come out.

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-I don't know if you saw the monkey tree.

-Of course, can't miss it.

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-That's staying.

-Oh, good.

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Keeping the monkey tree.

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-I don't know how far their roots go down.

-No, I don't.

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We're going to get somebody to have a look, to check it over for us.

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But it's very, very healthy and Siobhan wants it.

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Everything else taken out of the garden

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-and just leave the monkey tree on its own.

-Oh, great.

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-Listen, good luck with it.

-Thank you very much.

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-I look forward to seeing how you're getting on.

-Right. You're welcome back any time.

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Well, it seems that things have turned out really well for Bernie.

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It couldn't be a better located house.

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Still, lots of work to get it into a state

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that her daughter will be happy with.

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You can find out how they get on later in the show.

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This is Walworth in South East London.

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This area has been a bit of an anomaly -

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so close to the very heart of the city,

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but not the most affluent part.

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However, significant regeneration is taking place and,

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with new green spaces, shops appearing,

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and out-of-date housing being replaced, it may be a very good time

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to take a look at Walworth.

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This part of London took a bit of a hit in the Second World War,

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and lines of attractive Victorian terraces like this

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took the brunt of the bombs.

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Lucky for us, some of them did survive,

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and the lot we're here to see is this property here.

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It's a first-floor one-bedroom flat

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and it had a guide price of £130,000.

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The property is mere steps from Walworth Road,

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with all its facilities,

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and a five-minute walk to the Elephant & Castle Tube station.

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It feels quite hidden here,

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tucked away from the hustle and bustle of loud London.

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The property itself looks attractive

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and next door's flowers are certainly blooming.

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I wonder if the flat will be as colourful and appealing.

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So let's have a little look around the top-floor flat.

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Well, straightaway I can see it's split-level,

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which I like, because it always gives the illusion of space.

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You've got lovely ceiling height here.

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Although I can see straightaway a load of work needs to be done in this property.

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Look at the walls, they all need skimming. Look at that.

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There's years and years of gloss paint on this banister.

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Once that's all peeled away, though, that would look beautiful.

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There definitely is potential here.

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Bathroom, it's sort of squeezed in on the corner,

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but it's got its own window, that always helps with ventilation.

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And fantastic, look, lovely storage.

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Although have a look in there,

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I think you'd only make a bookshelf out of that.

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It's not very deep, bit of a disappointment.

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The kitchen, right at the back of the property,

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and I don't think I need to tell you what you need to do in here.

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The whole place needs to be ripped out, chucked in the skip

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and a brand-new, gorgeous, shiny kitchen fitted.

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Quite a bit of work to do, little bit grubby,

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but it could really scrub up well.

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So whilst a new kitchen and bathroom are needed,

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overall it's not in too bad a state.

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The bedrooms are a decent size and there are some great original features.

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The floorboards would benefit from a good sanding,

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but before you do that, check the lease conditions

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as sometimes there are restrictions from the freeholder.

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I'm really falling for this place.

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It's not spacious, no, you could never argue that,

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but what do you expect from just the top half of what was once a little workers' cottage?

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This is where the flat really does come into its own.

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What a lovely room.

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Shame about the fireplace, not original, fake stone cladding,

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I'd like to see something a little more traditional

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and in keeping in its place.

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But these windows are what really get me excited.

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You've got two in here, original sashes, beautiful.

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I think, by far, this is my favourite room.

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# Smile like you mean it. #

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And I really mean it. It's just as well this space works

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since it'll be where you spend most of your time.

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It's lovely to find these large rooms at the front of houses still intact,

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not subdivided to create a kitchen/diner or a second bedroom.

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But is there any way to make more of it without going stud wall crazy?

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There are two other first-floor flats on the same street

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that have recently gone up for sale.

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One for £233,000 and one for £235,000.

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So it's fair to say once renovated, the property could go on the market

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for around that figure, which,

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if the flat was bought for the guide price, is a very decent profit.

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But what about looking into making more money by adding an extra bedroom in the loft?

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Well, there's no-one else on the street that has done the same thing, which is telling,

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and you don't actually own the loft space here, the freeholder does.

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So you'd have to make enquiries into buying it,

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potentially for thousands of pounds, and try for planning for which there is no precedent.

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I wouldn't dismiss this plan out of hand,

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but I don't think it will be easy.

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If you really wanted that extra space, then go for it,

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but my feeling is that it could be a lot of hassle and expense

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which may equal little or no profit.

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Still, I do like options.

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We asked along a local estate agent to hear his views on this flat,

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which had an auction guide price of £130,000.

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My first impressions of this flat is that it's a great size

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and it's well located, being just by Wharf Road and Elephant & Castle.

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Plenty of natural light throughout

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so it certainly could be a fantastic double bedroom conversion.

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How much would it be worth now and after renovation?

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If I was to put a value on this property in its current condition,

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I would look at in the region of £190,000.

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Fully refurbished, you're certainly looking in the region of £250,000.

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What about rental?

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As far as rentals is concerned,

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you can expect to achieve in the region of £1,250 per calendar month.

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This flat is all about location and character charm,

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two things young buyers and renters are all after.

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A short walk or bike ride to the centre of London

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in an improving area with period features.

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What more could you want?

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Let's see who snapped this one up at the auction.

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One-bed flat, requires modernisation. Handy location.

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Who'd like to start this? 120?

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120.

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125. 125 at the back.

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130.

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135.

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140.

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145.

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A bidding war developed between a few eager participants.

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We rejoin the auction when it's reached 182,000,

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a hefty 52 grand over the guide price.

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182.

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183.

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184. 185.

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186. 187.

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187, sir? 188 with the tie.

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189, new spot.

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190. 191. 192.

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193. 192, sitting down. First time, second time.

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Third and last time, have you all done?

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Sold, 192, well done.

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That successful bid of 192,000 came from Rizvan.

0:19:560:20:01

He's a senior manager for a telecom company

0:20:010:20:04

and has developed several properties in the past.

0:20:040:20:07

I met up with him at the flat to find out

0:20:070:20:09

if local knowledge would help this London lad be successful.

0:20:090:20:12

So how well do you know this area of South London?

0:20:120:20:15

Not, not quite that well.

0:20:150:20:18

I don't live too far away from it, Maida Vale,

0:20:180:20:20

but I tend to deal in properties in North West London.

0:20:200:20:23

This is the first time I've actually come south of the river.

0:20:230:20:27

-So did you view this property prior to the auction?

-No, I didn't.

0:20:270:20:31

It was kind of blind when I got it.

0:20:310:20:33

The price seemed very good, I'd done some research,

0:20:330:20:36

looking at the catalogue the night before the auction.

0:20:360:20:40

It seemed... I basically set my limit on what would be a good price.

0:20:400:20:45

I think I went about 5-10k over,

0:20:450:20:48

but overall I am pretty much happy with what I've got.

0:20:480:20:52

So while you were bidding, did you feel that you were taking a slight risk?

0:20:520:20:56

Erm, I think there's always a risk in whatever you do, really.

0:20:560:21:00

Obviously they should be a calculated risk.

0:21:000:21:03

But yeah, yeah, there was a risk, but generally I had a good feeling.

0:21:030:21:10

# And I'm feeling good. #

0:21:100:21:12

A good feeling?

0:21:190:21:20

Well, Rizvan, I'm afraid a good feeling is not quite good enough.

0:21:200:21:24

Feelings and impressions are important once you're inside the property on a viewing,

0:21:240:21:29

but really, a feeling about just a photo in an auction catalogue can be described as a massive gamble.

0:21:290:21:36

However, he had done his research into the regeneration of the area,

0:21:360:21:40

which does make his gamble a little bit safer.

0:21:400:21:43

Rizvan, why would a buyer want this flat? What are you going to do to it?

0:21:430:21:48

Well, there are a few ideas floating in my head at this moment in time.

0:21:480:21:53

One is potentially converting the kitchen into the second bedroom

0:21:530:21:57

and bringing the kitchen into this reception room.

0:21:570:21:59

Obviously, that will make the reception room slightly smaller.

0:21:590:22:03

Another potential is going to the loft, subject to the council giving consent.

0:22:030:22:08

But I think the option which I may go with is stick to the same layout

0:22:080:22:14

and just put in a new kitchen, bathroom and redo up the place.

0:22:140:22:19

I think you're absolutely right.

0:22:190:22:21

This room, in my opinion,

0:22:210:22:23

is too small to share the kitchen with the lounge.

0:22:230:22:25

I think going up into the loft is a great idea,

0:22:250:22:28

although you don't own the freehold of this,

0:22:280:22:30

which means you don't actually own the loft.

0:22:300:22:32

Have you done any research into how much it might cost you to develop?

0:22:320:22:36

I have actually instructed my solicitors to speak with the council

0:22:360:22:41

with regards to looking at if I have usability of the loft since I'm the only one who has access to it.

0:22:410:22:46

We are still trying to get answers from the council.

0:22:460:22:51

Hopefully within a week or so I should be in a position to find out

0:22:510:22:55

whether I can have usability of the loft.

0:22:550:22:58

# Let's go up on the roof. #

0:22:580:23:01

Rizvan is looking at £7,000-£10,000 to do the work

0:23:040:23:09

if he doesn't go up into the loft and £35,000-£40,000 if he does.

0:23:090:23:14

Of course, that doesn't account for how much he'd have to pay to be able to do that, still unknown at present.

0:23:140:23:19

So come on, what's your experience? Have you done this before?

0:23:190:23:23

Erm, I have been doing this for the last four years, part-time, over the weekends.

0:23:230:23:29

In my normal day job, I work in the telecoms sector.

0:23:290:23:34

So this is something I've caught on from the rest of my family,

0:23:340:23:37

who have been in this business for around 40 years now.

0:23:370:23:40

So you are one busy guy,

0:23:400:23:42

you've got a full-time job which takes you all around the country

0:23:420:23:45

and every weekend you've been renovating, converting and a paintbrush in your hand.

0:23:450:23:49

-Am I right?

-No, not really.

0:23:490:23:53

The reason for that is because I tend to...

0:23:530:23:56

Because we've already got teams.

0:23:560:23:58

I mentioned earlier my family has been in this business for 40-odd years

0:23:580:24:02

so they have got established teams who have been working on other projects.

0:24:020:24:05

So I tend to bring them into the place and I tell them

0:24:050:24:09

what I want and I leave them to do the work.

0:24:090:24:11

So it's just you and a mobile phone.

0:24:110:24:13

Yeah, it's me on the mobile phone and then obviously

0:24:130:24:16

I do come in the middle for periodic inspections.

0:24:160:24:19

-So you're good at delegating?

-Yes. Yes.

0:24:190:24:21

So what's his timescale to do the work?

0:24:230:24:25

I would like to have it ready for the market within four to six weeks.

0:24:270:24:33

And then hoping to achieve the sale eight to ten weeks from today.

0:24:330:24:40

What are you most worried about?

0:24:400:24:42

If I miss the four to six weeks time frame,

0:24:420:24:45

there's some new builds which will be ready for the market

0:24:450:24:50

and I don't want to be competing against them because they tend to be

0:24:500:24:54

studios and they'll also be marketed under the stamp duty price.

0:24:540:24:59

So I'd like to get this off my hands as soon as possible, really.

0:24:590:25:02

Well, I'm really intrigued to see what you do to it,

0:25:020:25:04

how you're going to turn this place around.

0:25:040:25:06

-Good luck. It's been great meeting you today. Well done, thank you.

-Thank you.

0:25:060:25:10

If you're not handy with a paint brush,

0:25:100:25:13

you need to be good at delegating,

0:25:130:25:15

skills Rizvan has obviously developed.

0:25:150:25:17

I don't think he should try and squeeze a second bedroom in, though, without that loft conversion.

0:25:170:25:22

And I'm worried that will take a bit longer than he wants.

0:25:220:25:25

You can find out what he decides later in the programme.

0:25:250:25:28

Coming up, in Tiverton, Devon, this building is a write-off, but...

0:25:300:25:34

It doesn't matter because what I'm thinking is development plot. Fantastic.

0:25:340:25:39

In South London, has Rizvan led a charmed life?

0:25:400:25:44

I think I was very, very lucky. It could have been much worse.

0:25:460:25:49

But first, in Liverpool, Bernie's been committed to the cause.

0:25:510:25:55

Our life has been on hold...

0:25:550:25:58

until this project has been completed.

0:25:580:26:01

Back now to Netherton in Liverpool, where Bernie and her husband Mick

0:26:050:26:09

bought this two-bed semi for £47,500.

0:26:090:26:13

The plan was to help their daughter Siobhan get on the property ladder,

0:26:130:26:17

but in their haste to do this, they broke one of the golden rules of buying at auction.

0:26:170:26:22

-What about the legal pack? Did you get a chance to read that?

-No.

-No?

-No.

0:26:220:26:26

I know, and I watch your programme all the time

0:26:270:26:30

and you always shout at people for not reading the legal pack.

0:26:300:26:33

But it was too late to get hold of it.

0:26:330:26:35

But saying that, we live... I live around the corner.

0:26:350:26:39

I was born in the next street so I know the house,

0:26:390:26:43

I know the history of the house, so it wasn't really an issue.

0:26:430:26:46

The house had a jungle-like front garden that was obscuring

0:26:460:26:50

the view somewhat, and inside, it needed some real cosmetic surgery,

0:26:500:26:55

especially on some of the more original features.

0:26:550:26:58

Well, we're back six weeks later to see if this particular monkey puzzle has been solved.

0:26:580:27:03

The new kitchen has been fitted

0:27:190:27:21

and the place now has a more open-plan feel, as Bernie explains.

0:27:210:27:25

So we've open this up to make it an easier access into what is our breakfast room.

0:27:270:27:33

We had the French doors installed to throw some light in

0:27:330:27:36

because it is only small.

0:27:360:27:37

That leads us on to our television room,

0:27:370:27:40

which has turned out really well.

0:27:400:27:44

We had the roof pitched to give us more height

0:27:450:27:47

because the room is quite narrow with the height of the ceiling.

0:27:470:27:52

It makes it look a little bit more spacious.

0:27:520:27:55

Just need to add a television and that room is complete.

0:27:550:27:59

Upstairs, there's a new bathroom suite with a small bath

0:28:010:28:04

replaced by a shower cubicle.

0:28:040:28:06

The whole room has been retiled.

0:28:060:28:09

The bedrooms are nearly complete and now look lovely and bright.

0:28:090:28:13

With new central heating installed, Bernie has turned this place around,

0:28:170:28:20

although it sounds like there were plenty of people on hand to help.

0:28:200:28:25

All the family have been involved.

0:28:250:28:27

My daughter's partner's family have also been up and helped -

0:28:270:28:33

cleaning and moving rubbish and things like that,

0:28:330:28:37

so the whole family have been involved in some way or another.

0:28:370:28:41

As for those gardens, they've been totally cleared apart from the monkey puzzle tree.

0:28:470:28:52

This has given some parking space at the front

0:28:520:28:54

and the back has been cleared too.

0:28:540:28:57

The French windows open up onto some lovely new decking.

0:28:570:29:01

Some serious graft has clearly gone into transforming the outside space.

0:29:030:29:08

My husband and a couple of his work colleagues did the gardens,

0:29:100:29:14

which were hard work.

0:29:140:29:16

I think they were harder than the interior.

0:29:160:29:19

60 tons of rubble, they took out of the back garden.

0:29:190:29:24

He had three 20-ton lorries took rubbish out of the garden.

0:29:240:29:29

With her husband and colleagues kept busy in the gardens,

0:29:290:29:33

what was Bernie's role?

0:29:330:29:36

Well, I've been project managing as much as I can,

0:29:360:29:39

been round to let the joiners and what have you in.

0:29:390:29:44

It has impacted on my life.

0:29:440:29:47

My husband's been coming home from work

0:29:470:29:49

and his tea hasn't been ready and things like that.

0:29:490:29:52

Luckily, he's been patient and a lot of the time,

0:29:520:29:55

he's followed me round here anyway to work.

0:29:550:29:59

Our life has been on hold till this project's been completed.

0:30:000:30:06

Bernie was in charge of the spending.

0:30:060:30:08

So, how close did she stick to that budget?

0:30:080:30:11

Our original budget,

0:30:110:30:14

I budgeted for around 20, possibly 22.

0:30:140:30:18

We've actually spent 25.

0:30:180:30:21

On the basis, we've had more work done than we intended.

0:30:210:30:24

We had the front rendered

0:30:240:30:27

and the garden took a lot more of our budget than we thought it would do.

0:30:270:30:32

When added to the purchase price of 47,500,

0:30:320:30:36

that makes a total outlay of £72,500.

0:30:360:30:39

What do two local property experts think of the house?

0:30:390:30:45

First impressions, I like a house a lot.

0:30:450:30:47

I saw it before the work was carried out.

0:30:470:30:50

Walking around and looking at the finish, you can see that it has been

0:30:500:30:54

done for an owner-occupier as opposed to your typical buy-to-let property.

0:30:540:30:57

My first impressions of the property are very good.

0:30:570:31:00

It's been refurbed to quite a high standard.

0:31:000:31:02

It looks like whoever they got in to do the job,

0:31:020:31:05

they must be quite experienced at doing this type of thing.

0:31:050:31:10

What about the conversion of the garage?

0:31:100:31:12

I think what they've done with the garage is very good,

0:31:120:31:16

it's certainly added value, somewhere in the region of £5,000-£10,000.

0:31:160:31:20

How much would they value the house for?

0:31:200:31:24

A property in this condition, this area,

0:31:240:31:26

I would value at approximately £90,000.

0:31:260:31:30

The resale of the property would be £90,000.

0:31:300:31:33

Very good, yes, that's OK.

0:31:330:31:36

I'm really pleased with that, yeah.

0:31:360:31:38

That would give Bernie and her family a pre-tax profit

0:31:380:31:42

of £17,500, before the usual selling expenses.

0:31:420:31:46

What about rental?

0:31:460:31:47

The rental of the property would be £575-£600 per calendar month.

0:31:470:31:53

The rental value of a property in this condition

0:31:530:31:56

is approximately £600 per calendar month.

0:31:560:31:58

Excellent. Not that we would even consider renting out,

0:31:580:32:02

because my daughter's moving in, but it's good, really good.

0:32:020:32:06

How has the whole experience

0:32:060:32:09

of helping her daughter onto the property ladder gone for Bernie?

0:32:090:32:14

I think it's been a great success. I mean, you've just got to look at it -

0:32:140:32:18

somewhere nice for my daughter and her boyfriend to live

0:32:180:32:21

and I've really enjoyed the whole doing-up of it.

0:32:210:32:26

It's turned out really, really well.

0:32:260:32:28

I would like to buy another house in the same state that this one was in and do it again.

0:32:280:32:33

Next time, I would take my time,

0:32:330:32:36

I wouldn't do it in such a short space of time.

0:32:360:32:40

I would take a little bit longer over it,

0:32:400:32:42

but definitely do it again, yeah.

0:32:420:32:45

# Go west Where the skies are blue

0:32:470:32:51

# Go west This is what we're gonna do... #

0:32:510:32:55

Tiverton in Devon is a market town in the middle of the county.

0:32:550:33:00

In recent years, the population has been steadily on the rise

0:33:000:33:03

and with that, of course, so has the demand for housing.

0:33:030:33:07

I'm here to see a property which had a very interesting price.

0:33:070:33:11

I say that, because they actually said what the reserve was.

0:33:110:33:15

It actually said under £30,000 was the reserve price.

0:33:150:33:19

So, why would that be? Why would they give you that information?

0:33:190:33:22

I think it's because somebody's very keen to sell

0:33:220:33:25

and you'll soon understand why.

0:33:250:33:27

This is the property. It's actually a former shop.

0:33:270:33:30

It's got living accommodation above.

0:33:300:33:33

But don't be fooled by this side -

0:33:330:33:35

once you go inside, it gets much, much, much worse.

0:33:350:33:39

# I'm only happy when it rains

0:33:390:33:42

# I feel good when things are going wrong

0:33:420:33:47

# I only listen to the sad, sad songs... #

0:33:470:33:50

I wasn't exaggerating!

0:33:500:33:52

This garage building is the current entrance to the property

0:33:520:33:56

and judging by the number of puddles,

0:33:560:33:58

it's not even watertight on a rainy day.

0:33:580:34:01

There are holes in the roof

0:34:010:34:03

and Acrow props have been put up to support the beams.

0:34:030:34:06

It's hardly a welcoming entry to a house, is it?'

0:34:060:34:08

Well, you've got a living area here.

0:34:110:34:14

Well, I say living area, I'm not sure you'd particularly want to live in it.

0:34:140:34:18

But then, through to sort of like a rear area at the back.

0:34:180:34:22

Kitchen on the side, I call it a kitchen, it's where a kitchen would be but totally unusable.

0:34:220:34:27

Through here, this steel door actually is to stop people

0:34:270:34:31

going into the front of the property, which is where the shop unit was.

0:34:310:34:35

That's actually completely dangerous and in fact,

0:34:350:34:38

held up by the scaffolding.

0:34:380:34:41

Upstairs, I'll just tell you about it! Three bedrooms and a bathroom.

0:34:410:34:44

Judging by first impressions...

0:34:440:34:48

it's equally dreadful.

0:34:480:34:51

# Danger! Danger!

0:34:510:34:53

# High voltage!

0:34:530:34:56

# When we touch When we kiss... #

0:34:560:34:58

Dreadful indeed and not very safe either.

0:34:580:35:02

There were several rooms we didn't venture into.

0:35:020:35:05

Judging by the dark and dingy light up there,

0:35:050:35:07

it doesn't look as though this place has been lived in for a while.

0:35:070:35:11

Once you get up to the top attic room,

0:35:110:35:13

the height of the building gives the impression

0:35:130:35:16

that there might be a good view of Tiverton out there but for that, we'll have to wait.

0:35:160:35:20

At the rear of the property there are these outbuildings

0:35:200:35:23

and like the rest of the place, they're falling to pieces

0:35:230:35:26

but I've stopped being worried about that

0:35:260:35:29

because I'm not seeing this as something that I would restore any more.

0:35:290:35:32

I'm thinking about knocking the whole thing down, so I'm looking at the footprint.

0:35:320:35:36

The location in Tiverton's really good and there's actually quite a lot of land here.

0:35:360:35:41

So, the fact that, you know, I'm guessing if I leant on that it might fall down,

0:35:410:35:45

it doesn't matter, because what I'm thinking is, development plot. Fantastic!

0:35:450:35:49

We asked the auctioneer who sold the property

0:35:490:35:52

to get his views on this site.

0:35:520:35:54

It had an apparently modest reserve price of under 30,000.

0:35:540:35:59

There's a need for more housing everywhere

0:35:590:36:02

and Tiverton's no different.

0:36:020:36:05

The council are short of affordable accommodation

0:36:050:36:08

and would be keen for anybody who's going to build affordable-type accommodation.

0:36:080:36:12

Encouraging news for people

0:36:120:36:15

wanting to knock this down and create something sympathetic in its place.

0:36:150:36:18

The site's going to take about 10 or £15,000 to clear

0:36:180:36:23

and you'd certainly fit four two/three-storey cottages in its place.

0:36:230:36:28

They'll cost 50,000 each, maybe a fraction more, to create.

0:36:280:36:33

We're talking about a possible budget of £200,000 to build houses on the site.

0:36:330:36:39

What about potential resale values?

0:36:390:36:41

They'll be worth something around £100,000 each.

0:36:410:36:45

Wow, that would be a great return, although it would mean a big capital outlay at the start.

0:36:450:36:50

What rent could you expect from each cottage?

0:36:500:36:55

It's a brilliant rental town.

0:36:550:36:58

You'll get something in the region of £500 per calendar month.

0:36:580:37:02

Well, if that low reserve price of under 30,000 quid didn't get them interested in the auction,

0:37:020:37:07

I think the potential of this place definitely should.

0:37:070:37:10

It's well located in Tiverton, it's a nice-size plot.

0:37:100:37:13

If you accept the fact you're just going to knock it down and start again,

0:37:130:37:17

then I think there's a huge opportunity here to make a lot of money.

0:37:170:37:20

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

0:37:200:37:23

The reserve is a very, very reasonable.

0:37:230:37:26

Who'll just start me off nice and simply with £20,000 for lot 29?

0:37:260:37:31

20, sir, thank you, 20 I have. At 20. At 20.

0:37:310:37:33

At 22? And 25, if I may?

0:37:330:37:36

28. And 30? 30?

0:37:360:37:39

30 I have. 32.

0:37:390:37:41

35?

0:37:410:37:42

35, 37, 38.

0:37:440:37:46

40, 42? 42.

0:37:460:37:51

45? Thank you, sir, 45.

0:37:510:37:52

45, 45. 48 in blue, 48.

0:37:520:37:57

-At 48?

-Nine.

0:37:570:37:59

49, OK, I will. 49. At 49?

0:37:590:38:01

50. At 50. All over the place.

0:38:010:38:04

I'm going to go 52,

0:38:040:38:06

52, 54's right at the back.

0:38:060:38:09

56, thank you, sir, 56.

0:38:090:38:11

58. 60...

0:38:110:38:13

Two, at 64 is set, 66.

0:38:130:38:15

68, 68. 68 in the blue.

0:38:150:38:19

At 68. 70 is set. At 70, at 70?

0:38:190:38:23

Two. At 72, 72. At 72.

0:38:230:38:27

At 72, you should... Three.

0:38:270:38:31

At 73, at 73.

0:38:310:38:33

74. At 74, 74 is in blue. 74.

0:38:330:38:38

75 or not? 74 I have.

0:38:380:38:40

At 74, once and twice.

0:38:400:38:42

74, now it's serious, you sure and done?

0:38:420:38:45

Third and last time. 74, in the blue, here we go, at 74 and out.

0:38:450:38:50

74, in the blue.

0:38:500:38:52

# Come on, baby, and rescue me

0:38:540:38:57

# Cos I need you by my side... #

0:38:570:39:01

It was Gerry who made the final successful bid of 74,000.

0:39:010:39:06

He works in finance for the oil and gas industry

0:39:060:39:09

and describes himself as a hobby developer.

0:39:090:39:12

He's local to the area,

0:39:120:39:14

but will that knowledge be enough for the mammoth task ahead?

0:39:140:39:20

-Gerry.

-Hello!

-Congratulations.

-Thank you very much.

-Now, what have you bought?

0:39:200:39:24

LAUGHTER

0:39:240:39:26

Well, I'm not quite sure, actually.

0:39:260:39:29

I think what I've bought

0:39:290:39:31

is a property in a lot of need of love and care

0:39:310:39:34

and I think we can build

0:39:340:39:37

four pretty decent dwellings here.

0:39:370:39:40

You said love and care - I think a bulldozer springs to mind.

0:39:400:39:44

The care factor is it's actually falling down at the front, as you've seen.

0:39:440:39:49

But what we aim to do, really, is to knock down the existing structure

0:39:490:39:53

but to rebuild it in the same sort of style.

0:39:530:39:55

It is in a Conservation Area.

0:39:550:39:58

But to create four what you'd call "affordable homes"

0:39:580:40:01

with great living space

0:40:010:40:02

and some wonderful views over the Devon hills from the top.

0:40:020:40:06

I'm a great believer,

0:40:060:40:07

there's certainly nothing that's cut and dried here,

0:40:070:40:10

but where everything's cut and dried there's no opportunity, so I hope this is an opportunity.

0:40:100:40:14

# Smash it up

0:40:140:40:17

# Smash it up

0:40:170:40:18

# Smash it up

0:40:180:40:21

# Smash it up. #

0:40:210:40:24

I agree that Gerry will have to demolish the original building as it's in a sorry state,

0:40:240:40:29

but why does he want to build four properties on this site?

0:40:290:40:32

I think there's a real need for affordable housing

0:40:340:40:37

within a number of these Devon towns, Tiverton in particular.

0:40:370:40:41

I think there should be a good supply of people

0:40:410:40:45

waiting to rent good living spaces.

0:40:450:40:48

Great, a social aspect to it as well.

0:40:480:40:51

I don't want to sound too magnanimous, but yeah,

0:40:510:40:53

I'd like to think it would give people some nice places to live as well at a good price.

0:40:530:40:57

Tell me a bit more about you. What do you do when you're not doing this?

0:40:570:41:00

I'm used to much bigger projects than this.

0:41:000:41:03

I'm a civil engineer by background but I've been working in finance.

0:41:030:41:07

I advise on multi-billion pound projects, mostly in oil and gas.

0:41:070:41:11

-Multi-billion?

-Multi-billion pound.

-Like, how many multi-billions?

0:41:110:41:15

-Well, you name it, but commonly in 5 billion, 10 billion bracket.

-Wow!

0:41:150:41:20

I advise on those sorts of projects

0:41:200:41:22

and as there's not a huge amount of oil and gas in this part of the world,

0:41:220:41:25

I have to do a lot of travelling, but it's lovely to come back.

0:41:250:41:28

So, do you have any experience of this kind of thing?

0:41:280:41:31

I think this is probably the most ambitious I've taken on to date,

0:41:310:41:35

although it's not probably the biggest I've taken on to date.

0:41:350:41:38

I have always been interested in property development.

0:41:380:41:41

My parents moved house so many times,

0:41:410:41:44

-I'm one of four children, we had to do a lot of work for them...

-Really?

0:41:440:41:48

..on many different properties, and from my teens, really, I've been doing up houses.

0:41:480:41:53

I've got a few properties that I have done this sort of thing to,

0:41:530:41:56

but this is really the most ramshackle I've ever taken on,

0:41:560:42:01

so I think that the vision has to be the greatest here

0:42:010:42:04

and I hope we can do something really quite special here.

0:42:040:42:07

Gerry's aim with this project is to build in a style

0:42:070:42:11

that's is in keeping with existing properties in the area.

0:42:110:42:14

Good news for the locals, but what about his budget and time scale?

0:42:140:42:18

I've really got a budget to do the whole lot, including the purchase, of 225.

0:42:180:42:22

-Right.

-I'd like to think we could come in below that.

0:42:220:42:26

I mean, we've got to keep costs down by doing things in one big swoop.

0:42:260:42:30

What kind of time is this going to take, do you think?

0:42:300:42:33

I've got to get plans in for what I intend to do here quite quickly,

0:42:330:42:37

I mean within a couple of months.

0:42:370:42:39

That's been set by the local authority.

0:42:390:42:41

We've had to shore up and make safe the bits that aren't safe, such as where the scaffolding is.

0:42:410:42:46

I'd like to think we can get the main structure up

0:42:460:42:49

so that we can start fittings and electrics, et cetera, inside

0:42:490:42:54

-under a dry roof within a new structure within a year.

-Right.

0:42:540:43:00

So, who's actually going to do the work?

0:43:000:43:02

Two builders in particular I've used... We've worked on a number of developments locally.

0:43:020:43:06

They'll be doing most of the work, but we'll be bringing in all sorts of different tradespeople,

0:43:060:43:11

even the local farmer with his tractor might show up during the demolition.

0:43:110:43:16

It's going to be a community project. People have said they'd love to get involved.

0:43:160:43:20

Great. Congratulations. Good luck with it.

0:43:200:43:22

We really look forward to seeing how you get on.

0:43:220:43:24

Gerry's obviously got some ambitious plans for this place,

0:43:240:43:28

but it seems like he's got the whole community behind him.

0:43:280:43:31

Turning this into four houses, I think, makes good financial sense.

0:43:310:43:35

Still, you shouldn't underestimate the work involved in a project like this.

0:43:350:43:40

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

0:43:400:43:45

Time has been impatient as ever. Have our buyers kept to their promises?

0:43:470:43:52

Yes, have all those plans been carried out?

0:43:520:43:55

Has the work been done? Let's go back and find out.

0:43:550:43:58

So, it's back to Walworth in South London now where Rizvan who works in the telecoms sector,

0:44:000:44:06

bought this one-bedroom, top-floor flat for 192,000.

0:44:060:44:11

With some lovely original features, it just looked in need of updating and decorating.

0:44:110:44:16

But Rizvan was also considering extending into the loft

0:44:160:44:20

although he needed to negotiate with the council

0:44:200:44:23

as they had the freehold and control of the roof space.

0:44:230:44:27

We're still trying to get answers from the council.

0:44:270:44:31

Hopefully, within a week or so, I should be in a position

0:44:310:44:34

to find out whether I can have usability of the loft.

0:44:340:44:37

He wanted a quick turnaround on this project

0:44:370:44:40

as he was keen to get it on the market as soon as possible.

0:44:400:44:43

We've returned just over one month later to see how he got on.

0:44:430:44:48

Well, it looks like the quick renovation job that Rizvan was after.

0:44:580:45:02

Everything appears finished and there has been a total freshening up of the place.

0:45:020:45:07

The bathroom has a new suite installed and is totally retiled.

0:45:080:45:12

Next on the menu must be the kitchen.

0:45:140:45:17

We've put in nice, neutral-coloured cabinets in here.

0:45:180:45:22

We've put in some nice, flashy tiles which were chosen by my wife.

0:45:220:45:26

We've put in a new cooker and oven with a hob and extractor fan.

0:45:260:45:31

We put in a nice, decent sink in here.

0:45:310:45:35

I think the costs which we managed to save was with the boiler.

0:45:350:45:39

The boiler seemed fine, it just needed a service.

0:45:390:45:44

So we've basically done that service and we've kept the original boiler.

0:45:440:45:48

Not having to replace the boiler definitely saved Rizvan some money.

0:45:550:46:00

Going to the upper level,

0:46:000:46:02

the bedroom has been re-plastered and decorated.

0:46:020:46:05

What about the living room?

0:46:050:46:08

The whole place itself has been redecorated.

0:46:080:46:12

There used to be a fireplace over here which we've taken out and blocked off.

0:46:120:46:17

The sash windows over here. They were in very, very good condition

0:46:170:46:21

and because they were an original feature,

0:46:210:46:24

they've just been redecorated.

0:46:240:46:26

I'm so glad he opted to keep the original windows.

0:46:260:46:30

They really help retain the character and charm.

0:46:300:46:33

After consulting local estate agents,

0:46:330:46:35

he's decided not to split the living room to make an extra bedroom.

0:46:350:46:39

But what about that possible loft conversion?

0:46:390:46:42

Basically, the head height wasn't exactly great

0:46:420:46:46

and the cost of actually putting in a loft extension and the resale value...

0:46:460:46:52

The numbers didn't really tally up together,

0:46:520:46:55

so I thought it would be much wiser just to keep the existing layout as it is.

0:46:550:46:59

Consulting the local estate agents was the smart thing to do.

0:46:590:47:03

There's no point in spending extra cash

0:47:030:47:06

when the sums don't add up. Although Rizvan took a gamble

0:47:060:47:09

when he bought this property without viewing it,

0:47:090:47:12

considering the apparent smoothness of the renovations,

0:47:120:47:15

despite buying blind, does he feel fortunate?

0:47:150:47:18

I think I was very, very lucky. It could have been much worse.

0:47:180:47:22

But the structure was fine. Works only took three weeks.

0:47:220:47:27

The expectation was that it was going to take four weeks.

0:47:270:47:31

But basically the guys who were working here did a great job

0:47:310:47:34

and they finished much earlier.

0:47:340:47:36

With his reliable team making short work here, did that help the budget?

0:47:360:47:42

We actually went slightly over budget.

0:47:420:47:44

We spent 10,500.

0:47:440:47:46

So, all in all, I think I am pretty much happy

0:47:460:47:50

with what I've spent on it.

0:47:500:47:52

Adding the 10,500 to the purchase price of 192,000

0:47:530:47:59

gives a total outlay of £202,500.

0:47:590:48:03

What do two local estate agents think of Rizvan's renovation?

0:48:030:48:07

My first impressions coming back to the property today

0:48:090:48:12

are really good. Very neutral, very smart, well done.

0:48:120:48:15

It's going to suit a multitude of applicants in the area.

0:48:150:48:18

I think the property's been done to a good standard.

0:48:180:48:21

The standard does reflect the area and the market

0:48:210:48:23

he's trying to promote the property to, so he's done a good job.

0:48:230:48:27

How much rent could this property earn?

0:48:270:48:29

If we were to put this property on the market for rent,

0:48:290:48:31

I would expect it to achieve in the region of £1,200 per calendar month.

0:48:310:48:35

If we were to put this poverty on the rental market today,

0:48:350:48:38

I would expect to achieve around about £1,100 per calendar month.

0:48:380:48:41

That would give a yield of between 6.5% and 7%.

0:48:410:48:45

However, this place has already been marketed for sale by one of these estate agents.

0:48:450:48:50

We were marketing the property

0:48:500:48:52

and we found we had an enormous amount of interest

0:48:520:48:54

from first-time buyers and investors alike.

0:48:540:48:57

When people were viewing the property, it came across that they really liked the space

0:48:570:49:01

and they really liked the fact that it was well done and very neutral.

0:49:010:49:05

That coupled with the location meant that it was always going to be a winner.

0:49:050:49:08

What would the other agent value it at?

0:49:080:49:12

If I was to put this on the open market now,

0:49:120:49:15

I would expect to achieve £235,000.

0:49:150:49:17

I had quite a few offers in.

0:49:170:49:19

The highest one, which I have accepted, is of 230,000.

0:49:190:49:24

So I'm not all that surprised but I am very much happy

0:49:240:49:27

that I've managed to get this offer which I've accepted.

0:49:270:49:30

That gives Rizvan a pre-tax profit of £27,500.

0:49:300:49:35

What does his estate agent think of that?

0:49:350:49:38

I feel that's a fair offer. Had we marketed the property a little bit longer,

0:49:380:49:41

we could maybe have achieved a little bit more.

0:49:410:49:44

But 230 is certainly a fair offer.

0:49:440:49:46

Is Rizvan happy with his decision to go for a quick sale

0:49:460:49:50

or should he have held out for more?

0:49:500:49:52

The aim was to get it up and ready for the market

0:49:520:49:55

and sell it off as soon as possible.

0:49:550:49:57

Timing is crucial cos I wanted to move over to a new property.

0:49:570:50:01

All in all, I'm very much happy with the results.

0:50:010:50:04

This is actually the eighth property Rizvan has bought,

0:50:040:50:07

having sold on all but two of the others.

0:50:070:50:09

What are his plans now?

0:50:090:50:12

The aim medium to long term, is to develop a portfolio

0:50:120:50:17

and gradually leave my job and start managing property full-time.

0:50:170:50:23

Back to Tiverton in Devon now,

0:50:270:50:29

where part-time property developer Gerry bought this dilapidated place for 74,000.

0:50:290:50:34

Even though he's used to conducting multibillion-pound deals

0:50:340:50:40

in his day job in the oil and gas industry,

0:50:400:50:42

he knew he had a challenge on his hands here.

0:50:420:50:45

I've got a few properties that I have done this sort of thing to,

0:50:450:50:48

but this is really the most ramshackle I've ever taken on.

0:50:480:50:52

So I think the vision has to be the greatest here,

0:50:520:50:55

and I hope we can do something really quite special here.

0:50:550:50:59

Jerry's plan was to demolish the crumbling property and,

0:50:590:51:02

as it's a Conservation Area,

0:51:020:51:04

build four cottage-style homes in keeping with the local style.

0:51:040:51:08

Well, 22 months later, we've come back to see if Gerry's vision is now a reality.

0:51:080:51:14

# Beautiful vision

0:51:140:51:18

# Stay with me all of the time

0:51:200:51:25

# Beautiful vision. #

0:51:270:51:31

Well, it's still a building site and very much a work in progress,

0:51:310:51:37

but a lot has been done.

0:51:370:51:39

The old property has been demolished and

0:51:390:51:41

although his original vision of building four dwellings has changed,

0:51:410:51:44

Gerry is well on the way to building three fantastic new homes.

0:51:440:51:50

Originally we thought up to four houses,

0:51:500:51:52

but when I looked at the plans, they were going to be really quite small

0:51:520:51:56

to get four houses here.

0:51:560:51:58

It's a confined site.

0:51:580:52:00

I wanted to have parking and I wanted to have some outside space,

0:52:000:52:04

we needed to have some outside space, utility area, etc,

0:52:040:52:07

for the planning approval.

0:52:070:52:09

I actually thought when I walked around with the architect,

0:52:090:52:13

three is going to be nicer than four.

0:52:130:52:15

And I didn't want to build rabbit hutches, I wanted to build three character properties.

0:52:150:52:19

They're all different.

0:52:190:52:20

Slight change in plan, then,

0:52:290:52:31

with the development now consisting of a two-bedroomed house...

0:52:310:52:34

..and a one-bedroom flat with a two-bedroom maisonette above.

0:52:380:52:43

Also, Gerry wanted to introduce something

0:52:430:52:46

which was slightly lacking in the original property -

0:52:460:52:49

light.

0:52:490:52:51

Yes, so here we are in the two-bedroom maisonette.

0:52:520:52:55

We're standing on what is essentially going to be a thoroughfare.

0:52:550:52:59

We've got the bedroom over there.

0:52:590:53:01

What I really like about this is we're going to have stair access up to the second bedroom,

0:53:010:53:06

which will have some really nice views

0:53:060:53:08

from a Velux window in the circular slated roof.

0:53:080:53:11

We've also tried to use a lot of natural light in the design.

0:53:110:53:17

If you look down here, you can have quite a good view

0:53:170:53:19

of what is essentially quite a pretty Tiverton street.

0:53:190:53:22

I think it's going to be a nice place to live.

0:53:220:53:25

Kitchen, bathroom... Yeah. I'd be pleased to entertain people here.

0:53:250:53:30

# Let me entertain you

0:53:300:53:35

# Entertain you Come on, come on... #

0:53:350:53:39

Well, this project hasn't always been entertaining for Gerry. There's been a lot of hard work.

0:53:400:53:44

Before construction could begin, the old building had to be demolished,

0:53:440:53:49

a technical challenge in itself.

0:53:490:53:52

We had structural engineers involved. We had to be sure that everything was safe.

0:53:520:53:56

In fact, we were using the scaffolding to support the building

0:53:560:53:59

because if you recall when I bought the building,

0:53:590:54:02

the front face over the shop was falling down.

0:54:020:54:04

One of the reasons I got the building for a good price was it was unsafe.

0:54:040:54:08

So we shored everything up and then took it down brick by brick.

0:54:080:54:12

All the windows and the rotten wood out, roof structure, rafters -

0:54:140:54:17

the whole lot.

0:54:170:54:19

Everything we could use, we did. In terms of hard-core.

0:54:190:54:24

Gerry has spent more than he expected.

0:54:240:54:27

He purchased the property for 74,000 and the demolition and building work

0:54:270:54:32

has come in at around 200,000,

0:54:320:54:34

giving him a projected overall outlay of £274,000.

0:54:340:54:39

We asked two local property experts for their opinions on the work so far.

0:54:390:54:44

Well, it's quite a transformation from what was here before.

0:54:440:54:47

It's a new-build development, so it's obviously going to be finished to a good standard.

0:54:470:54:51

It's a good location for getting into town.

0:54:510:54:54

It's really nice to see the developers are replacing

0:54:540:54:57

a lot of the old features

0:54:570:54:58

with the new, up-to-date edition.

0:54:580:55:01

But what they are trying to do is keep those in mind

0:55:010:55:04

with the curved fascia and the sash windows that are going in.

0:55:040:55:07

What about valuations for the two-bedroom house?

0:55:070:55:11

We'd be looking to achieve something in the region of £115,000.

0:55:110:55:15

Around about £120,000 for the house.

0:55:150:55:19

And the two-bedroom maisonette?

0:55:190:55:22

Perhaps 110,000 for the maisonette.

0:55:220:55:24

We would look to market the property at £105,000.

0:55:240:55:29

And finally, the one-bedroom flat.

0:55:290:55:32

Probably in the region of £75,000-£80,000.

0:55:320:55:35

We would expect to achieve something in the region of £85,000.

0:55:350:55:40

So those estimated values would make the whole site

0:55:400:55:43

worth between £295,000-£315,000

0:55:430:55:48

giving Gerry a pre-tax profit of between £21,000-£41,000.

0:55:480:55:52

However, his plans have always been to rent these properties out.

0:55:520:55:56

And the expert's valuations on these properties

0:55:560:55:58

give him an estimated rental income of between £1,250 and £1,525 per month.

0:55:580:56:06

That would mean a yield of between 5% and 6%.

0:56:060:56:09

My plan is normally just to rent them out at slightly below market value

0:56:090:56:13

and get long-term tenants who look after the place,

0:56:130:56:17

treat it as their own, and quid pro quo is I give them a good deal on monthly rental.

0:56:170:56:21

Despite the time this development has taken,

0:56:210:56:24

how does Gerry feel about it all?

0:56:240:56:26

I really enjoyed the whole experience of buying at auction.

0:56:280:56:31

I'm very pleased with how it's turned out.

0:56:310:56:34

I'm very excited about doing further developments in the locality.

0:56:340:56:39

He seems very unfazed by all the challenges he faced.

0:56:390:56:43

What advice would he give other would-be developers?

0:56:430:56:46

I've got a saying,

0:56:460:56:47

if it doesn't frighten you, you're not thinking big enough.

0:56:470:56:51

So many different auction experiences.

0:56:540:56:57

We'll have plenty more where they came from.

0:56:570:56:59

-Look forward to seeing you then.

-Goodbye.

-Goodbye.

0:56:590:57:02

Subtitles by Red Bee Media Ltd

0:57:100:57:14

E-mail [email protected]

0:57:140:57:19

Martin Roberts and Lucy Alexander visit a two-bedroom semi in Netherton, a flat in south London and a former shop in Tiverton. All of these properties have been sold at auction - find out who bought them and what they paid when they went under the hammer.