Episode 91 Homes Under the Hammer


Episode 91

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Transcript


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Hello. Like you, we're interested in property.

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That means every aspect of it. Martin, you know what we're like.

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We're always on the lookout for a bargain.

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One way you might be able to get one is to go down to your local auction.

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Well, there are property auctions held all over the country

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throughout the year, so you really are spoilt for choice.

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Let's take a look at the properties that made our buyers

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want to part with their cash on today's programme.

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In Greater Manchester,

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this two-bed mid-terrace opens up a world of possibilities.

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Good, good size space to be getting on with.

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This ground-floor flat in Balham, south-west London

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ticks all the right boxes.

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This flat could look fantastic once you've spent some cash on it.

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And in South Wales,

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upgrading this former bakery might cost too much bread.

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I'd be talking about knocking the whole thing down

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because by the time you've repaired these walls,

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you're into a big amount of money.

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All these properties have been sold at auction

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and we'll find out who bought them and what they paid for them

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-when they went under the hammer.

-Yours, sir, thank you very much.

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I'm in Denton, just a few miles from Manchester city centre

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and a mile or so from the M60 and M67.

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It's a popular spot for commuters so it's a busy place

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with the almost constant hustle and bustle of traffic making its way through the town.

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The property I'm here to see is on this street,

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made up of largely turn-of-the-century terraced houses on one side

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and semi-detached properties on the other.

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The house, though, that was up for auction is this one.

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It's a mid-terrace, two bedrooms, guided at £40-45,000.

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Looks like it might need a bit of work.

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Always a bit nervous when there's boarded-up windows

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but actually, at first glance, not too bad.

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Having said that, you can see the damp coming through there.

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My guess is it's either some guttering problem or possibly

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penetrating through the joints in the bricks.

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That needs checking out.

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A good-sized room though and actually with glass in the window

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as opposed to wood, it would actually be nice and light and airy.

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Gas fire, wallpaper that clearly needs to be removed.

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The thing which really hits you when you come in here is this.

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I haven't seen this kind of layout before.

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I've seen a staircase dividing rooms before

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but not this dividing wall which is between them.

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I say between them, as in between the front room and this, the kitchen.

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It's got a bit of Perspex in it but it really doesn't work like that.

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Either block it up completely or take it away.

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Actually, I think blocking that up, keeping the door,

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would be the way to go, because you've got a really nice-sized kitchen space here.

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Enough room for a table there.

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And a nice addition,

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what I guess is an extension at the back where the boiler is or whatever.

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Lots of space to play with.

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Clearly all the units need replaced, the flooring needs to be redone,

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but good, good size space to be getting on with.

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Despite the odd stairwell,

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I really do like the space this property has to offer downstairs.

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Once that wall's reinstated, there are two decent-sized rooms here.

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There's always the potential to move those stairs but you need to

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work out how the extra effort and cost would impact on your return.

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And talking of stairs, what's up there?

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So, upstairs, a small bedroom towards the rear of your property.

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You've got your bathroom and loo which is good news and then

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a half-decent sized bedroom towards the front of the property.

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Lots of light coming through the windows, it's nice to see the cupboards,

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but what I'm really interested in is what's going on on this front wall.

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This is a continuation of the damp that I found downstairs.

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As you can see, it stretches all the way up and as you can see, it is very, very slimy.

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So, obviously very current. Water pouring down here.

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It's leading me to think it's either guttering or the roof

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that's the problem so that needs to be sorted out.

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It won't cost much to repair it but the damage it's doing,

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that is going to cause you... Who knows?

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Fixing both the problem with the damp

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and the damage caused by it should be the top priority here.

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It must be dealt with before starting renovation anywhere else in the property

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or your hard work could literally get washed away.

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Back to the positives though, out the back.

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So, at the rear of the property, that extension I mentioned.

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You've also got this little courtyard area which is quite useful

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but by far the most interesting thing for me

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is out the back gate here where you've got an alley.

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A few years ago, this would have had these alley gates put on it.

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That creates two things.

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One, it means it's much safer in terms of unwanted visitors,

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but also, as a place for kids to play, a real nice area too.

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So, two bonuses. Good stuff.

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Despite the damp,

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this place is getting the thumbs-up from me so far,

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especially with that £40-45,000 guide price.

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We invited the auctioneer who sold it to tell us if he felt the same.

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Obviously, it needs some modernisation,

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but a fairly standard two bedroom terraced property and I like it.

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It's got quite a nice feel.

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Once the work's been done to modernise it,

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what would he expect the house to be worth if sold?

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Once fully renovated, I think the property

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would go on the market for somewhere between £80-85,000.

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How would it stack up in the rental stakes?

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From a rental point of view, if this property was coming

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on the market done to a good standard,

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I would say somewhere in the region of £475-495 per calendar month.

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With properties, it's always the simplest things which cause problems.

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As you can see, the gutter at the front here has got a problem

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that caused water to come down the front of the house.

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You can see there is even mould sticking out.

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That's what's caused the damp but what we don't know is how much damage is done.

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For that reason, a little bit of caution, but still a good property for a good price.

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

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It's late in the day so many bidders have left but

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there's still interest in this property.

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30,000 straight in on my right. 32 here, 34, 36, 38.

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New bidder stood right at the very back. At £40,000. 42 here. 44 then.

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46, yes. 48. 50, sir, yes. 52.

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51? Yes, I'll take it. 51, 52 I need.

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Got it, 53. 53, sir. 54. 54 I've got. 55.

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You're out? 55.

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A half. 55 and a half, I'll take it. 56 I've got. Another half I need.

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57. And a half, yes? 57 and a half.

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58,000 with you, 58 and a half, I need.

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59. On my right, 59 and a half stood up. 60,000.

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60 and a half I've got. 61? Nope.

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60,500, for the first time. 60,500 for the second time.

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Third and final time. Well done. Sold to you, sir. Well done.

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Your paddle number, please. 634, well done.

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That successful bid of 60,500 was made by Sean

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on behalf of himself and brother Fergal, who are both full-time property developers.

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But they're not from round these parts. They're from Dublin.

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I met them back at their new Denton property to find out more.

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Sean, Fergal, lovely to meet you both. Congratulations.

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Tell me why you wanted to buy this place in Manchester.

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Well, we've been over here for a number of years developing property.

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We own the house next door as well. We bought it at auction

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a few weeks previous so when this came up we went with it.

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So, I can tell from the accent you're not from Manchester.

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-That's correct. We're both from Dublin.

-OK.

-I'm based over here.

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-Come over every Sunday evening, go back on the Thursday.

-And do what?

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-Source the properties.

-OK.

-We buy a lot of stuff at auction.

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I'll obviously do the homeworking and Sean comes and looks at the properties.

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-Right, and so are you a builder?

-I don't actually build myself.

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We've got a couple of builders that work for us, that are employed.

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-We employ them full-time.

-Right, but it's a partnership between you two?

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-It's a family business, yeah.

-Really? Family business.

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-Sean, myself and my wife, Jane. We're all together.

-Great.

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Sounds like a great partnership to me.

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They've been investing together for the last 16 years

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so it must be working for them.

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But it does still beg the question of why they're doing it

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so far from home?

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So, why Manchester? Why not Dublin for instance?

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Property prices, as you probably were aware,

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went out of control in Ireland. We've had a property crash there.

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Property was always affordable here.

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We gave just over 60,000 for this property.

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The equivalent property in Ireland still would be at least twice that.

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Right.

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It's a good city, a big population, good infrastructure.

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-That's why we concentrate mainly on the north-west.

-The practicalities.

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You are obviously over in Ireland and the properties are over in Manchester.

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-What kind of problems does that bring?

-Very few.

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With modern transport now, it's 30 minutes on a flight.

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Again, if we get a ferry over, it's two hours up from Holyhead.

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Same language. One of the major attractions for ourselves

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is the weakness in sterling.

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There's a lot of international money coming into the UK

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because sterling has weakened so much and the euro's so strong.

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There's a double hit.

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Property prices have dropped and also the currency helps as well.

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You're buying in the equivalent of euros.

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We get more for our euro than we did maybe five or six years ago.

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But of course, any rents coming back to you will be in pounds.

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It goes back in pounds but again, if you have a mortgage,

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you're paying a sterling mortgage so it's all...

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-It all works.

-It all works.

-Good.

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Fergal and Sean are trying to do the best they can with their finances in the current market,

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even though that means commuting between two countries.

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With its boarded-up windows and rather sorry exterior,

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they think this is the worst house in the street.

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If all goes to plan,

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that won't be the case by the time they've finished with it.

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So, tell me what you will do to sort it out.

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Basically, we'll just come in, we'll just literally empty everything

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that's in here, bring it back to the bare bones and we start then.

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We do the floors, skim the walls, new windows, new doors,

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there's a bit of dampness coming in the walls and it's all from the gutter.

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Right. It's that usual thing of

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a simple thing but causes a bit of damage.

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-That's it.

-What about the internal layout?

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Because you've got this very unusual layout.

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We had our architect out and he said really,

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we have to leave the stairs as it is.

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We are going to block up the wall there,

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make it two separate rooms, but just leave the layout as it is.

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-Right. So keep just the door there.

-A door there into the kitchen, yeah.

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What kind of cost have you got in mind for doing it?

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-Budget probably about 8-9,000.

-And then?

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Rent it out. Keep it long term. There's a massive rental demand at the moment

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so don't see too much problem renting.

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-What's the kind of timescale for getting it sorted?

-5-6 weeks.

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Easily, yeah.

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In that time, they also plan to install a new bathroom,

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lay carpet and redecorate upstairs.

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It sounds like they've got the whole thing perfectly planned out.

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Well, brothers Sean and Fergal clearly have a very successful

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property developing partnership going on here

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and no reason to think they'll be any less successful with this place.

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However, I am a little bit concerned about that budget.

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It seems a bit tight, especially when you don't know

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what damage that damp in the front corner has done.

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

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Today, I have journeyed to Balham in south London.

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Fabulous transport links, shops aplenty and it's also

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the birthplace of the celebrity chef, wait for it, Ainsley Harriott.

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Being a seasoned property buyer,

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I know that location is key to any successful purchase

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and the lot I'm here to see, well, it couldn't be better placed,

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because there is Balham tube station and this,

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well, this is the road where today's auction lot is.

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A great starter. Let's get down there and see the main attraction.

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The question is, will we get our just deserts?

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If location is anything to go by, I think this auction lot

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could be setting itself up for a very sweet review.

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Buying a property that's within walking distance from shops,

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tubes and train lines, well,

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that will always get a massive thumbs up for me.

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It's not just the location that's attractive. The auction lot is too.

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It's a two-bedroom ground-floor flat.

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It had a guide price of 190,000. Here it is.

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The windows could do with some attention

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but it's a nice double-fronted flat in a great location.

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Now, the really exciting thing about this property is you get

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the whole of the ground floor so you get the two windows to the front.

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It's double-fronted and it makes this property feel huge.

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It's got a really nice big space in there.

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You could have a bedroom or a lounge.

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A second reception room here, again, it could be a bedroom a lounge.

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Bit of a tatty kitchen.

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In fact, the whole flat is very shabby indeed but look, it goes on.

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You've got lots of rooms back there. This flat quite excites me.

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It could look fantastic once you've spent some cash on it.

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You're going to need to lavish some love on this place

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and it probably requires some serious expenditure.

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The bathroom and toilet will have to be upgraded

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and could be combined into one.

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That bedroom/rear reception room needs to be completely refurbished, as do the other two front rooms.

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But there's a good deal of space here.

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There's even the bonus of a cellar.

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For London, that £190,000 guide price was pretty reasonable,

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but there's a catch.

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This flat comes with a 99 year lease and ordinarily, that would be fine,

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but it was issued in 1975.

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That means there's only 63 years left on it.

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Some mortgage companies will be put off by that and it could mean

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whoever buys this will have to be a cash buyer.

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It's also tricky when it comes to extending the lease.

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The freeholder may be open to negotiation but if they're not,

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you'll have to wait two years before you can apply again.

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After this time, they are legally obligated to extend the lease,

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but the cost of doing so, well, it can run into thousands.

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This will have implications for the new owner.

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So, I hope whoever took this on read that legal pack first.

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Leasehold properties really do need to be checked.

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There's ground rent to pay. Luckily, in this case, just £25 per year.

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There's a shared garden to consider

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but it's not just the short lease that gives me cause for concern.

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This flat is very close to the train station which is great

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but I'm not sure I'd like to be this close.

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The noise from the trains will undoubtedly have

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an impact on the sales market.

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Local agents predict a 6% drop in achievable figures,

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yet another thing to think about when you're doing your sums here.

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A drop of 6% means having that rail track so close

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will knock at least 12-15 grand off the flat's resell value.

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Unfortunately, the trains aren't the only unwanted neighbours.

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Just a little concern of mine,

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slap bang next to the property is this sort of scruffy, derelict plot.

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I would make my inquiries as soon as possible.

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Find out who owns this because as it is, it's a bit of an eyesore.

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This doesn't help the flat's all-important kerb appeal.

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With the trains and the short lease, there's a lot to consider here,

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but I still think that at what was a £190,000 guide price,

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this flat could be a good buy.

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What does the local estate agent think?

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Do the positives outweigh the negatives?

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Incredibly pretty on the outside and the rooms inside are very good sizes.

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Very well proportioned, good high ceilings.

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The short lease is clearly a potential sticking point

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but if the lease was extended and the flat fully refurbished,

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what sort of return could you expect?

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You'd be able to rent this out per calendar month for about £1,600.

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-I would recommend putting this on the market at £395,000.

-Yes!

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You did hear that right.

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A potential 395 resale and £1,600 a month rent.

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So for all its faults, this flat could be one mighty fine investment.

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That short lease will undoubtedly put some buyers off but for me,

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there is nothing here that's insurmountable.

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You will be able to extend the lease for a price

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and once that's all in order and the work's complete,

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I think this is a great little investment.

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Let's see who agreed with me as we go to auction.

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Lot 17. Two-bed ground-floor flat, handy location. 200.

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Yes, standing up, 200.

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201. 201, 202, 203, 204, 205.

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206, 207, 208, 209.

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210.

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211, 212, 213,

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214, 215, 216.

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217, 218, 219, 220.

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Have a think. 219 with you, first time,

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second time, third and last time

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if you're all done.

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Sold, 219.

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For 219,000, the successful bidders were David and his wife Debbie.

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David owns a chain of bars.

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They had their first child, Madeleine, just 12 weeks ago,

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so his wife Debbie's on maternity leave from her job

0:19:330:19:36

as an accounts assistant.

0:19:360:19:38

While Debbie attends to the baby, I caught up with David.

0:19:380:19:42

David, congratulations. What was it about this flat

0:19:420:19:45

you liked enough to want to bid for it on auction day?

0:19:450:19:48

The location, mainly. Balham's a great area, I live in Balham.

0:19:480:19:51

-I've had a local business here for 7-8 years.

-What do you do?

0:19:510:19:55

I own a bar-restaurant.

0:19:550:19:57

A couple of bar-restaurants, one in Balham, one in Clapham

0:19:570:20:00

-and one in the City.

-How's business going?

-It's OK.

0:20:000:20:04

Obviously hard times at the moment but it's the same for everyone, so maybe a bit of diversifying.

0:20:040:20:09

The bars are great and I enjoy doing them

0:20:090:20:11

but in the longer term, with Maddie, the new baby coming along,

0:20:110:20:14

I don't particularly want to be working so much in the evenings.

0:20:140:20:17

Maybe try and do some property instead.

0:20:170:20:20

David's hoping that property development may be the way forward

0:20:200:20:23

for a more conducive family life,

0:20:230:20:27

but with this flat, there are a few issues to be resolved.

0:20:270:20:30

Let's talk about a few of the negatives with this property.

0:20:300:20:34

Straightaway, the low lease. Would that not put you off?

0:20:340:20:37

It did a bit but leases can always be extended.

0:20:370:20:39

The upstairs flat has been negotiating with the freehold

0:20:390:20:43

at the moment and I think he's been quoted 15,000 for the new lease.

0:20:430:20:47

It's good to hear that David has already made some enquiries

0:20:470:20:50

with the neighbour about the lease

0:20:500:20:52

and has got a rough idea of how much it would cost to extend,

0:20:520:20:56

but there's that other potential thorn in their side.

0:20:560:21:00

David, what do you know about that plot next door, that bit of derelict land?

0:21:000:21:03

I know a local chap owns it

0:21:030:21:06

and I believe he wants to get planning permission to build

0:21:060:21:09

a live-work dwelling on the land.

0:21:090:21:13

I know he's tried unsuccessfully to get planning permission a few times.

0:21:130:21:16

In fact, I think we find out in a couple of days whether

0:21:160:21:19

he's going to get the planning appeal rejected or accepted.

0:21:190:21:22

I'd prefer him to build something there or if he doesn't build it,

0:21:220:21:26

maybe we can buy it off him and turn it into car parking space or a garden.

0:21:260:21:30

There's two flats in this building so a rear garden and a side garden, we could have one each and there you go.

0:21:300:21:35

I think that would be a great solution and the good thing is, there's no rush.

0:21:350:21:39

David can sort these issues out

0:21:390:21:41

while still renting out the flat to earn income.

0:21:410:21:44

What about the positives? Let's have a look, you have a fantastic house here.

0:21:440:21:48

It's double fronted, lots of light coming in.

0:21:480:21:50

-Lovely big square rooms. It does need a lot of work.

-It does.

0:21:500:21:54

I think strip it back to the brickwork and start again.

0:21:540:21:58

It all needs rewiring, new kitchen, new bathroom. The works, basically.

0:21:580:22:02

Maybe knock a wall down between the kitchen and the lounge.

0:22:020:22:06

-What's your budget for the work?

-I'm hoping to do it for 15,000.

0:22:060:22:10

It will probably end up being 20 knowing me.

0:22:110:22:14

I plan on doing quite a lot of the work myself

0:22:140:22:16

so I will use some local builders as well who I do know.

0:22:160:22:20

You've just mentioned to me

0:22:200:22:21

that you don't want to be working in the evenings as much because you've got beautiful baby Madeleine,

0:22:210:22:26

but you've just taken on a property and you need to do lots of work,

0:22:260:22:29

and you're going to be here a lot. You're going to be

0:22:290:22:32

-quite busy for the next few months, aren't you?

-Yeah.

0:22:320:22:35

It's funny, actually, after I bought it, I thought, I'm not going

0:22:350:22:38

to be at home as much as I thought I was going to be, am I?

0:22:380:22:42

I think the penny's dropped.

0:22:420:22:44

This flat needs a lot of work to turn it around,

0:22:440:22:46

which probably means David will be away from his wife Debbie

0:22:460:22:49

and his baby daughter quite a bit. How do they feel about that?

0:22:490:22:53

Debbie, you really have got so much going on at the moment.

0:22:530:22:56

How are you going to manage it all with little baby Madeleine?

0:22:560:23:00

Well, Daddy will be doing a lot of the work, thankfully for me.

0:23:000:23:04

We'll probably will be doing bits and bobs at home on the internet, making calls.

0:23:040:23:09

Come see Daddy at lunch for sandwich

0:23:090:23:12

and exit sharply before we get roped into some more work.

0:23:120:23:16

Now, Debbie, Daddy did tell me that he planned on having a nice

0:23:160:23:20

relaxing time, wanted to spend more time with you and the family.

0:23:200:23:23

Didn't want to be at the bar late at night working

0:23:230:23:27

and then you go and buy this flat, so why?

0:23:270:23:29

Bit of an investment.

0:23:290:23:31

Obviously, I'm off with this one on maternity so help pay the bills.

0:23:310:23:35

Listen, good luck with the project.

0:23:350:23:38

Don't work too hard,

0:23:380:23:39

make sure you enjoy lots of time with this gorgeous little girl.

0:23:390:23:43

Bye-bye. Bye, Madeleine.

0:23:430:23:45

How will David and Debbie get on extending the lease

0:23:580:24:01

and will they be able to buy the other half of that garden?

0:24:010:24:04

Lots of negotiating required here. How are the couple going to get on?

0:24:040:24:08

And little baby Madeleine, will she affect things?

0:24:080:24:11

Will the sleepless nights take their toll on this project?

0:24:110:24:14

You can find out what happens later on in the programme.

0:24:140:24:18

Coming up - the ground floor of this former bakery

0:24:180:24:21

in Mid Glamorgan is in a right state.

0:24:210:24:24

In terms of up there, you know what, I don't even think I'm going to go up there.

0:24:240:24:28

In Balham, south London,

0:24:280:24:31

just how time-consuming has the renovation been for David?

0:24:310:24:34

I've been here quite a lot actually and my work's probably suffered a little bit for it.

0:24:340:24:39

But first, in Greater Manchester,

0:24:390:24:42

Fergal's getting a buzz from his work.

0:24:420:24:44

Satisfaction seeing the property taken from a shell condition to finished condition.

0:24:440:24:49

Back to Denton, Greater Manchester now where brothers

0:24:530:24:56

and full-time property developers Fergal and Sean

0:24:560:25:00

bought this terraced house at auction for £60,500.

0:25:000:25:04

Born, bred and based in Dublin they may be,

0:25:040:25:07

but there was good reason to be here.

0:25:070:25:09

Tell me why you wanted to buy this little place in Manchester?

0:25:090:25:12

We've been over here for a number of years developing property

0:25:120:25:15

and we actually own the house next door. We bought it at auction

0:25:150:25:19

a few weeks previous so when this came up, we went with it.

0:25:190:25:22

First things first, this house needed a complete overhaul

0:25:220:25:25

and the brothers reckoned they could do it all in five to six weeks.

0:25:250:25:29

So we've come back eight weeks after we first met them

0:25:290:25:32

to see if they've hit their target.

0:25:320:25:34

Looks to me like they have and how! It's no slapdash job either.

0:25:510:25:57

From fixtures to fittings, the standard of finish here is high.

0:25:570:26:01

I'm glad to see that they've reinstated the wall

0:26:010:26:04

next to the stairs, to make the new kitchen diner

0:26:040:26:07

a much better space as Fergal explains.

0:26:070:26:09

Well, the condition of the kitchen as you can see has totally changed.

0:26:110:26:15

We've replaced all the units, brand-new kitchen,

0:26:150:26:18

a new oven hob, washing machine, new boiler.

0:26:180:26:21

It's brought the units up to here.

0:26:210:26:24

I think they were previously just before the cooker.

0:26:240:26:27

New tiling, new extractor fan, new lighting.

0:26:270:26:30

Basically, a whole new kitchen.

0:26:300:26:33

To get it looking like this, first the entire house was gutted.

0:26:330:26:36

Then they had to deal with the issues caused by those gutters.

0:26:360:26:41

There was a damp problem so we had to replace the gutters, front and back.

0:26:410:26:45

That got rid of all the water coming into the house.

0:26:450:26:48

It was totally plumbed the house, totally plumbed. We got plastering done.

0:26:480:26:52

Once it was done, we installed the kitchen, replaced the bathroom suite

0:26:520:26:55

and we started decorating the house.

0:26:550:26:58

And they have given it a top-notch finish

0:26:580:27:01

for very solid commercial reasons.

0:27:010:27:03

We like to keep all our houses at the same standard.

0:27:030:27:06

Obviously, if you're housed to a high standard,

0:27:060:27:09

you're going to get a pretty good tenant.

0:27:090:27:11

They are going to take care of the house, they tend to stay longer,

0:27:110:27:15

so we get better yields, higher rents.

0:27:150:27:17

Sean's absolutely right.

0:27:170:27:19

The better the standard of finish, the more likely the new tenants are

0:27:190:27:22

to look after it, and you'll come out a winner in the long term.

0:27:220:27:26

This renovation didn't take long either.

0:27:260:27:29

From start to finish, about six weeks. Six weeks in total.

0:27:290:27:33

The only surprise problem Fergal and Sean faced during the renovation

0:27:340:27:37

was that the whole house had to be rewired.

0:27:370:27:40

This had a slight impact on their budget.

0:27:400:27:43

They originally estimated between £8 and 9,000

0:27:430:27:47

and ended up spending 10,200, but there were certainly

0:27:470:27:50

no problems with working together thanks to the geography.

0:27:500:27:56

The way we managed, Sean is based in Manchester.

0:27:560:27:59

I live in Ireland so it works well.

0:27:590:28:02

Sean project manages everything from start to finish

0:28:020:28:05

and I have my uses also.

0:28:050:28:08

Now that this property is ready to let out,

0:28:080:28:11

they are going to start on the one they already own next door.

0:28:110:28:14

Since we last met them, they've bought the house on the other side too.

0:28:140:28:18

Something tells me they're aiming for the whole street.

0:28:180:28:22

They clearly seem to have found a job that they love doing.

0:28:220:28:25

Obviously, satisfaction seeing the property

0:28:250:28:27

taken from a shell condition to finished condition.

0:28:270:28:30

It's an interesting lifestyle, interesting business.

0:28:300:28:33

They bought this property for 60,500

0:28:330:28:36

and spent 10,200 on the renovations,

0:28:360:28:40

making their total outlay 70,700.

0:28:400:28:44

We invited two local property experts

0:28:450:28:48

to the newly refurbished house to see if they were impressed

0:28:480:28:52

with the work Sean and Fergal had done.

0:28:520:28:56

First impressions are wow!

0:28:560:28:58

It's just a major transformation, we see a lot

0:28:580:29:00

but this has been done really well.

0:29:000:29:02

They've gone that extra mile in terms of the finish

0:29:020:29:04

and it just looks really good, very pleased to see it.

0:29:040:29:08

I think they've done an amazing job. It was done to

0:29:080:29:11

a very high standard, as you can see from the plastering.

0:29:110:29:13

It's not a cheap job, impressed with it.

0:29:130:29:16

But will the financial returns be impressive?

0:29:160:29:18

If the property were to be put on the market to sell,

0:29:180:29:21

what price would the experts recommend?

0:29:210:29:24

Remember, their total spend is not far off 71,000.

0:29:260:29:31

The current market conditions, I think this property's worth

0:29:310:29:34

somewhere in the region of 85, possibly £90,000.

0:29:340:29:36

I would put this property on the market

0:29:360:29:39

at offers over £85,000 to achieve £90,000.

0:29:390:29:42

Happy with those figures.

0:29:420:29:44

Again, we're going to keep it long-term but it's nice to know

0:29:440:29:47

if we ever need to sell, we should make a profit.

0:29:470:29:50

Long-term or not, it still goes to show that in just a few weeks,

0:29:500:29:54

the brothers have the potential to make a pre-tax profit

0:29:540:29:56

of between around 14 and £19,000, not too shabby at all.

0:29:560:30:03

But the crux of the matter is all in the rental yield.

0:30:030:30:06

So, give us those please, experts.

0:30:060:30:08

I thought we could rent this property out at £500 per calendar month.

0:30:090:30:13

The standard of the property would make it comfortably

0:30:130:30:16

£500 per calendar month, possibly more.

0:30:160:30:18

-The rental figures, nearly spot on. We got 525.

-Yes, you heard right.

0:30:180:30:23

Sean and Fergal have already rented the property out

0:30:230:30:27

for £525 per calendar month.

0:30:270:30:29

That gives them a fantastic rental yield of just under 9%

0:30:290:30:33

and it's not the only thing they're happy about.

0:30:330:30:36

We finished relatively easy, didn't hit any snags.

0:30:390:30:42

Not every job's going to be as smooth as this

0:30:420:30:44

-but we take the rough with the smooth.

-You certainly do.

0:30:440:30:48

I'm in Pontypridd in Wales.

0:30:540:30:57

This area has a rather mystical and magical history

0:30:570:31:02

because apparently, the famous wizard Merlin was helped

0:31:020:31:05

across a river here so blessed the area with good fortune.

0:31:050:31:09

Now that's what I like to hear when it comes to looking for property.

0:31:090:31:14

Pontypridd got its name from the Welsh for bridge of earth

0:31:180:31:22

since people took advantage of the shallowness of the River Taff here

0:31:220:31:26

to cross from one side to the other.

0:31:260:31:29

Let's hope that today's property is not for someone wet behind the ears.

0:31:290:31:33

The property I'm here to see is a former bakery.

0:31:360:31:39

It's a real shame it's a former one

0:31:390:31:40

because it would have been lovely if it had been operational.

0:31:400:31:44

You'd have that smell of freshly baking bread in the air.

0:31:440:31:46

Given that the property has been unused for several years,

0:31:460:31:51

something tells me that that beautiful aroma

0:31:510:31:54

that you sometimes have in houses when trying to sell them

0:31:540:31:57

will be replaced by something slightly less pleasant.

0:31:570:32:00

Oh well, here goes nothing.

0:32:000:32:01

Yes, the run-down dilapidated state isn't encouraging either.

0:32:040:32:09

But with a guide price of only £10,000,

0:32:090:32:13

it's got to be worth a look, hasn't it?

0:32:130:32:16

OK, sticky door there. So what have we got?

0:32:190:32:22

Basically, one big downstairs room with more upstairs

0:32:220:32:28

which I'll explore in a minute.

0:32:280:32:30

Obviously, it's in a right old state.

0:32:300:32:32

Quite disappointingly, no indication of its life as a bakery in the past.

0:32:320:32:38

Just this fairly rough walls. I also want to investigate what's on the other side of this wall

0:32:380:32:42

because you might have issues with party walls.

0:32:420:32:45

A reasonable-sized space and in terms of converting old industrial premises like this

0:32:450:32:49

into residential units, they do make quite characterful properties,

0:32:490:32:54

but you've got to know what you're taking on.

0:32:540:32:57

As you can see, it's in a right old state

0:32:570:33:00

and in terms of up there, you know what,

0:33:000:33:02

I don't even think I'm going to go up there.

0:33:020:33:04

But climb a few of those steps, stick your head up

0:33:060:33:09

and you can see that again, there's a huge space to work with,

0:33:090:33:13

offering plenty of potential.

0:33:130:33:15

Remember, the guide price was only £10,000 but still,

0:33:150:33:19

all the joists, woodwork and wiring should be consigned to the past

0:33:190:33:23

and put in a skip. That's not all.

0:33:230:33:26

Unfortunately, outside, one of the walls is definitely showing signs of decay.

0:33:260:33:31

There are two ominous cracks that really should be checked out

0:33:310:33:35

by a structural engineer.

0:33:350:33:37

If there's a serious problem, then I can see that costing big bucks to fix.

0:33:370:33:41

With all these negatives,

0:33:410:33:42

maybe it would take old Merlin back in the town to sort them.

0:33:420:33:46

So why on Earth would you want to take on a place that requires this much work?

0:33:490:33:53

The good news is that in 2009, planning permission was granted

0:33:530:33:57

to convert this old bakery into a dwelling.

0:33:570:34:00

One bedroom house. Interesting design though.

0:34:000:34:04

If I start downstairs, a huge great double garage which takes up

0:34:040:34:07

virtually half of the size, then you've got a kitchen,

0:34:070:34:10

dining room and a downstairs loo.

0:34:100:34:12

Moving upstairs, you've got one bedroom and a living room.

0:34:120:34:15

Have to say though, if it was me,

0:34:150:34:18

I'd be talking about knocking the whole thing down because

0:34:180:34:21

by the time you've repaired these walls, you're into a big amount of money.

0:34:210:34:25

In the end, the question is,

0:34:250:34:27

will the rewards be high enough after an expensive renovation?

0:34:270:34:31

For a second opinion on this building guided at £10,000,

0:34:330:34:37

we asked along a local estate agent

0:34:370:34:39

to hear her thoughts on the old bakery.

0:34:390:34:42

I think this property is absolutely brilliant.

0:34:440:34:46

It's a blank canvas and it could be something really special.

0:34:460:34:51

Potential-wise, it depends what the owner wants to do with it

0:34:510:34:55

and if it's for rental, then you can go one way.

0:34:550:34:58

If it's for themselves, they could really push the boat out

0:34:580:35:01

and do something special.

0:35:010:35:03

How much would it cost to get this place up and running?

0:35:030:35:07

I think to get this particular property up to a saleable condition,

0:35:070:35:12

the minimum would be 25 to 30,000.

0:35:120:35:15

Anything over that would be luxurious.

0:35:150:35:17

With a guide price of 10,000,

0:35:170:35:20

that would mean a possible outlay of £40,000 plus.

0:35:200:35:24

How would the returns look, first, if sold?

0:35:240:35:28

I think the resale value on the property as a one-bedroom property

0:35:280:35:32

could be between 40 and 55, even up to £60,000.

0:35:320:35:36

And rental?

0:35:360:35:39

I think the property, even as a one-bedroom property,

0:35:390:35:43

would get between 250 and 350 per calendar month.

0:35:430:35:46

So did this old bakery rise to the occasion

0:35:460:35:51

when it went to the auction rooms or fall completely flat?

0:35:510:35:55

At YEAST it had that planning permission

0:35:550:35:57

although it is going to KNEAD a lot of work to sort it out!

0:35:570:36:01

Let's see who had the bread to buy it when it went under the hammer.

0:36:010:36:05

Lot number three. Bid me 14 to start, surely.

0:36:100:36:13

Got to be worth more than that. 12 if you like, let's get on.

0:36:130:36:17

12, put it in. Eight, I'm bid then. Thank you.

0:36:170:36:21

8,000 is all I'm bid. Nine I'm bid and 10, is it? 10 I'm bid.

0:36:210:36:24

At £10,000, all right, make it 500. This is no money for it.

0:36:240:36:29

At 10,000, 11. Thank you, sir. 11 I'm bid.

0:36:290:36:33

Make it another half. 11 and a half and 12 if you like, sir.

0:36:330:36:37

12, I'm bid there, standing. Half at the back. At 12 and a half.

0:36:370:36:41

I thought you'd got it, sir. At 13 and again half is bid.

0:36:410:36:46

13 and a half standing. 14, please, 14, I'm bid.

0:36:460:36:49

You're out, sir.

0:36:490:36:50

Half, at 14 and a half. 15, is it? 15 is bid.

0:36:500:36:54

15 and a half I'm bid. 15 and a half, 16, will you?

0:36:540:36:58

Don't shake your head, you'll go home and think, I should have bought that! Try one more.

0:36:580:37:03

16, is it? Thank you, sir. At 16.

0:37:030:37:07

You're not going to lose it for 500 as well, surely? Have you done?

0:37:070:37:10

There is my bid at 16. At £16,000. Yours, sir. Thank you very much.

0:37:100:37:17

The bidder who snapped up this lot for £16,000 was Norman.

0:37:170:37:22

Norman's a local man who has been a builder for 40 years.

0:37:230:37:27

Along with his son, Neil,

0:37:270:37:29

they aim to bring the old bakery back to life as a new house.

0:37:290:37:32

I met them to find out more.

0:37:320:37:34

-Neil, Norman. Good to meet you both. Congratulations.

-Thank you.

0:37:360:37:40

Tell me why you wanted to buy the building.

0:37:400:37:42

We were looking for a property to do up between me

0:37:420:37:45

and my father and my brother-in-law.

0:37:450:37:49

It's local and the price.

0:37:490:37:51

Is this threesome you've got

0:37:510:37:54

something that works together quite a lot?

0:37:540:37:56

Me and my father are in business together anyway.

0:37:560:37:59

My brother-in-law, Steve, has done some work with my father

0:37:590:38:03

so it's my father's idea to get the three of us working together.

0:38:030:38:07

Great, OK. What prompted that, Norman?

0:38:070:38:10

I've done this type of thing in the past on my own.

0:38:100:38:13

Steve has worked with me then just as a help and I thought

0:38:130:38:17

just get these two together and start doing it as a joint thing, like.

0:38:170:38:20

It's been more you doing it on your own?

0:38:200:38:23

I've always done it on my own.

0:38:230:38:24

This is the first time as a joint venture.

0:38:240:38:27

-What are the advantages of bringing other people on board?

-I'm getting old!

0:38:270:38:32

So you're going to bring in younger blood to help you out.

0:38:320:38:35

Norman has spent his working life restoring and renovating properties.

0:38:350:38:39

In fact, Neil manages two convenience stores

0:38:390:38:42

which the pair have renovated together.

0:38:420:38:44

And with son-in-law Steve, who's a trained carpenter,

0:38:440:38:47

Norman hopes the team will make a success of this project

0:38:470:38:51

despite its run-down state.

0:38:510:38:52

-I knew the building because we live local.

-You knew it?

0:38:520:38:58

-We knew the building. The first time we'd been inside was today.

-OK.

0:38:580:39:02

Any great surprises?

0:39:020:39:04

No. We can see that the one end is falling down

0:39:040:39:07

-so this is how we expected it to be.

-Right.

0:39:070:39:10

The fact that you've got a bit of experience, Norman, does that make

0:39:100:39:14

you comfortable about not having a look inside before you bought it?

0:39:140:39:18

Imagining the worst so whatever I see is better.

0:39:180:39:21

Tell me exactly what you're going to do to this place.

0:39:210:39:23

Are you pretty much going to stick to the plans as they are?

0:39:230:39:27

At the moment, I haven't even spoke to the building officer yet.

0:39:270:39:30

If there's a possibility of turning it into a two-bedroom dwelling,

0:39:300:39:33

I'm mostly looking to do that. I don't think there is.

0:39:330:39:37

Reading the literature, because the plans have been refused

0:39:370:39:41

so many times, the final plans have been amended and passed.

0:39:410:39:45

I'm going to ask but I don't think we'll get past

0:39:460:39:49

the one bedroom dwelling that's been passed.

0:39:490:39:52

Well, you don't know if you don't ask

0:39:520:39:55

and a two bed would certainly add more value to a finished product.

0:39:550:39:59

Also ideally, Norman would like to take the building down to the ground

0:39:590:40:04

and start from scratch, though he'll

0:40:040:40:06

obviously have to get planning permission to go that far.

0:40:060:40:09

Talk me through the numbers on that,

0:40:090:40:11

how it stacks up in terms of a profitable venture.

0:40:110:40:14

We've laid down at the moment about £17,000.

0:40:140:40:17

We've got a budget excluding labour, because we do the labour,

0:40:170:40:21

of about 13,000.

0:40:210:40:25

-13?!

-Yes.

-Whoa!

-HE LAUGHS

0:40:250:40:28

That can stretch to 20 if it needs to be but in my experience,

0:40:280:40:32

I know it won't.

0:40:320:40:33

-Wow! So how are you going to build it for 13?

-No labour.

0:40:330:40:36

-No labour, it's just material.

-Right.

-That's just material.

-Just material.

0:40:360:40:40

The labour we put in free, for a better word,

0:40:400:40:43

and we'd be taking labour costs out of the profit at the end.

0:40:430:40:46

How are you going to divide out the labour between you?

0:40:460:40:50

The labour will be done mainly myself and my son-in-law, Steve.

0:40:500:40:54

-Right. You were laughing then.

-I've got no building skills whatsoever.

0:40:540:40:58

-Right.

-My father could build the house on his own,

0:40:580:41:01

I've got no building skills,

0:41:010:41:03

so I'll just do whatever he tells me to do.

0:41:030:41:06

Go and fetch materials, get the materials in,

0:41:060:41:09

do some labouring for them.

0:41:090:41:11

-Right.

-All the skilled work will be my father and Steve.

0:41:110:41:15

-Are you looking forward to learning a few things? You're bound to pick up stuff.

-No!

0:41:150:41:19

I've worked with them before and I've never learnt anything

0:41:190:41:23

so I won't be learning anything here either. I just do as I'm told.

0:41:230:41:27

I won't be learning anything.

0:41:270:41:30

Because Neil will be managing the shops during the day

0:41:300:41:33

and Steve working full-time on other jobs, the trio will do

0:41:330:41:37

the renovation in their spare time during evenings and weekends.

0:41:370:41:41

They've given themselves six months to get it all done.

0:41:410:41:45

The three of you working together, if that's a success,

0:41:450:41:48

you'll repeat that?

0:41:480:41:50

Oh yes. It's really to get them started. I'm getting too old now.

0:41:500:41:53

Get them started and hopefully do a few more of these.

0:41:530:41:56

-Are you up for that?

-He will still be doing them when he's 85.

0:41:560:42:01

-He's never going to retire.

-Listen, congratulations anyway.

0:42:010:42:04

We look forward to seeing how you get on.

0:42:040:42:08

Hope you can fit it in with everything else you're doing.

0:42:080:42:11

So, Neil and dad Norman taking on a big project here,

0:42:110:42:15

but Norman for one having the experience to make it happen

0:42:150:42:18

and Neil, well, maybe he can look after the shop

0:42:180:42:22

while Dad finishes the job off!

0:42:220:42:24

Lots of work to do, will they make any dough out of it?

0:42:240:42:28

You can find out later in the show.

0:42:280:42:31

There's been plenty of time for our buyers to start work on their properties.

0:42:340:42:38

But have they actually done anything or have they been beset by problems?

0:42:380:42:42

Time is money. Have they made any or have they lost any?

0:42:420:42:46

Let's go back and find out.

0:42:460:42:48

In the south-west London area of Balham,

0:42:480:42:51

this two bed ground floor flat went to auction.

0:42:510:42:55

Close inspection revealed a property that despite its slightly sorry condition,

0:42:550:43:00

had a lot of hidden charm, but take a few steps and the view was less encouraging.

0:43:000:43:06

There were trains passing close by and I saw a bit of empty land

0:43:060:43:09

next door, a shared garden and issues on the length of the lease,

0:43:090:43:14

so not one for the faint-hearted.

0:43:140:43:16

But to bar owner David, the positives outweighed the negatives.

0:43:160:43:20

With his wife Debbie on maternity leave, since the arrival of their first child Madeleine,

0:43:200:43:25

he saw this as an opportunity to venture into a new business.

0:43:250:43:30

The bars are great. I enjoy doing them.

0:43:300:43:33

In the longer term, with the new baby coming along, I don't want to be working in the evenings

0:43:330:43:39

and try and do some property instead.

0:43:390:43:41

It may have sounded like a good idea,

0:43:410:43:44

but with David planning to do a lot of the work himself,

0:43:440:43:47

I'm not sure how much free time he really was going to get.

0:43:470:43:50

He paid 219,000 at auction and hoped to do it all for 15-20,000.

0:43:500:43:58

Now, four-and-a-half months later, we're back.

0:43:580:44:01

The outside shows signs of improvement with new windows and fresh paintwork.

0:44:040:44:09

But what about inside?

0:44:110:44:14

The front bedroom has been revamped and modernised with solid wood floors,

0:44:170:44:21

a new central heating system, re-plastered walls and fresh decoration throughout.

0:44:210:44:27

The front reception room's also been completely refurbished.

0:44:270:44:31

But it's been turned into another bedroom.

0:44:310:44:36

So what's happened to the back bedroom?

0:44:360:44:39

Well, that's now a fabulous open plan lounge-cum-kitchen diner.

0:44:390:44:44

We've ripped out the old kitchen, put in a new fitted kitchen.

0:44:470:44:51

This wall's come down to open it all up between kitchen,

0:44:510:44:56

dining and lounge and then we've just moved the old kitchen door,

0:44:560:45:00

so we've got patio doors onto the garden. It makes a nice big integrated space.

0:45:000:45:06

Wow! What a difference that makes!

0:45:060:45:09

With the bathroom and toilet also refurbished to a good standard,

0:45:100:45:14

David seems to have made the most of what he had to work with.

0:45:140:45:18

But turning this around must have taken some doing.

0:45:180:45:23

Down here quite a lot actually, my work's probably suffered a bit for it, my other job, and my little baby

0:45:230:45:30

and wife, but I've been down here most days, five or six days a week.

0:45:300:45:35

In the end, David hasn't had as much free time as he originally hoped for.

0:45:350:45:41

He's done a top job here, but it wasn't just the fixtures

0:45:410:45:45

and fittings that needed sorting out, there was the small issue

0:45:450:45:49

of the short 63 year lease that was affecting the flat's value.

0:45:490:45:53

Myself and the chap upstairs are in the process of buying the freehold.

0:45:530:45:58

We've had it valued and it's come back in at £40,000.

0:45:580:46:02

It's going to be significant, 20,000 plus costs per flat,

0:46:020:46:07

but in the long run it'll be well worth it

0:46:070:46:09

and we'll have control of the house, which is the main issue.

0:46:090:46:14

It might be another 20,000, but it would be worth every penny to get the freehold

0:46:140:46:19

because with the current short lease,

0:46:190:46:22

the flat would be very difficult to sell on and to extend the lease would have cost thousands anyway.

0:46:220:46:28

Not only will buying the freehold increase its market value,

0:46:280:46:32

issues such as the shared garden could be more easily resolved.

0:46:320:46:36

With the garden, it sort of depends on the freehold.

0:46:360:46:39

If we get the freehold, we'll probably end up splitting it or I'll buy it off the neighbour upstairs.

0:46:390:46:45

There's also a possibility we'll get more land on the side of the house,

0:46:450:46:50

which then he can have a bit on the side and we'll all be happy then.

0:46:500:46:53

Yes, it looks like the freehold includes the messy plot at the side.

0:46:530:46:58

What a fantastic bonus! David really has rolled up his sleeves

0:46:580:47:02

and turned each potential challenge into a positive

0:47:020:47:05

and not only has he finished the refurb, he's also got a tenant.

0:47:050:47:09

At the moment, I have my cousin, who's moved in,

0:47:090:47:13

just to keep the place warm.

0:47:130:47:15

I might move in, I'm not sure, with my wife, we'll see. But yeah.

0:47:150:47:20

With most boxes ticked, the only other issue was expenditure.

0:47:210:47:25

Did he stick to his tight budget of 15-20,000?

0:47:250:47:29

I've ended up about 25, in all.

0:47:290:47:31

So I've put some nice flooring down and some extra bits

0:47:310:47:36

which are a bit better than for the rental market.

0:47:360:47:40

£25,000's still pretty good. With the purchase price of £219,000

0:47:410:47:46

he's spent to date before the usual costs and fees

0:47:460:47:50

and without the cost of buying the freehold would be around 244,000.

0:47:500:47:55

So has this new venture into property paid off?

0:47:550:47:58

What do two local estate agents think?

0:47:580:48:01

My first impressions are that they've done a very good job.

0:48:010:48:04

A high standard finish,

0:48:040:48:06

and transformed what was a sorry-looking flat.

0:48:060:48:09

The flat's fantastic. It's been done to a high standard.

0:48:090:48:12

It's ideal for professional sharers.

0:48:120:48:14

This area is high end and the finish matches that.

0:48:140:48:17

It definitely gets the stamp of approval,

0:48:170:48:20

but in order to make this viable for the resale market,

0:48:200:48:24

David will need to pay around £20,000 for the freehold.

0:48:240:48:27

That would take his total spend to around £264,000, so would that investment be worth it?

0:48:270:48:34

If they put the property up for sale,

0:48:340:48:36

I'd expect to achieve in the region of 375-385,000.

0:48:360:48:42

This property on the sales market at the moment would achieve between £370,000 and £380,000.

0:48:420:48:48

Wow! Even with the cost of buying a freehold,

0:48:480:48:51

those kind of values could net a whopping pre-tax profit

0:48:510:48:54

of between £106,000 and £121,000, minus the usual selling expenses.

0:48:540:49:01

It's good, given the market's still not that great at the moment.

0:49:010:49:05

It's in line with what we hoped when we bought it.

0:49:050:49:08

Just need to sort out the lease and a few other issues. It'll be good.

0:49:080:49:12

Despite those healthy resale values,

0:49:120:49:15

for the moment the plan is to rent the flat out.

0:49:150:49:18

If we were to put this up for rent, we'd achieve in the region of 1,600-1,650 per calendar month.

0:49:180:49:25

This property on the rental market would achieve £1,600-£1,700 per calendar month.

0:49:250:49:30

It's really good. Excellent.

0:49:300:49:34

A bit of income for while this little one's growing up.

0:49:340:49:37

With a rental yield of between 7 and 8%,

0:49:370:49:40

this investment stacks up on all fronts.

0:49:400:49:43

Now with it finished, is Debbie looking forward to having David home a bit more?

0:49:430:49:47

# I want you back, I want you back, I want you back for good... #

0:49:470:49:53

Yes. Have some help with the little one, definitely. I think she's missed him as well.

0:49:530:49:57

Have a little break and move on to the next project.

0:49:570:50:01

Well, with his bars, property and daughter Madeleine,

0:50:010:50:05

it looks like David's got his hands full for some time to come.

0:50:050:50:08

Earlier, we were in Pontypridd in Wales where experienced builder Norman

0:50:140:50:20

purchased this rundown ex-bakery at auction for £16,000.

0:50:200:50:25

He planned to turn it into a one or two bedroom dwelling with the help of son Neil and son-in-law Steve.

0:50:250:50:31

-So in the past it's been you on your own.

-I've always done it on my own.

0:50:320:50:36

This is the first time we've done it as a joint venture.

0:50:360:50:39

-What are the advantages of bringing in other people?

-I'm getting old!

0:50:390:50:43

You're bringing in younger blood to help you out.

0:50:430:50:47

# I must be getting older

0:50:470:50:51

# Cos I've never been smarter than I am. #

0:50:510:50:56

The building already had planning permission to be made into a one bedroom house.

0:50:560:51:01

Norman, Steve and Neil plan to do the work within six months, carrying out the labour themselves

0:51:010:51:07

and to keep down their renovation budget of between 13 and 20 grand.

0:51:070:51:11

But boy oh boy, was there a lot of work to do!

0:51:110:51:14

Bare brick walls, rotten joists and antiquated wiring were just the tip of the iceberg.

0:51:140:51:20

I also noticed some large cracks in one of the walls, which needed serious attention.

0:51:200:51:25

So not six but nearly 20 months later,

0:51:280:51:31

we're back in Pontypridd and...

0:51:310:51:34

Ah! This is all looking much the same now as it was back then.

0:51:360:51:40

In fact, the only change I can see is what's growing out

0:51:440:51:48

of the side of the building, rather than what's going on inside.

0:51:480:51:52

Time for Neil and his dad Norman to spill the beans.

0:51:520:51:56

I had a meeting with the council. I proposed to take two-thirds of it down and rebuild the walls

0:51:580:52:05

in block work, which that constitutes a new planning permission.

0:52:050:52:12

In order to start the work, Norman first wanted to rebuild that dilapidated rear wall,

0:52:120:52:17

but the planning permission in place states the structure of the building must stay the same.

0:52:170:52:22

To rebuild the wall requires a new planning application, which may or may not be approved.

0:52:220:52:28

One thing for sure though, that wall needs fixing.

0:52:280:52:32

This elevation of the property is in the worst state.

0:52:320:52:36

I propose now to take this portion of the property down.

0:52:360:52:39

It's only the outside section of the wall is collapsing, so the outside section will be taken down

0:52:390:52:45

and rebuilt in the existing material.

0:52:450:52:48

But the planning office have already indicated to Norman

0:52:480:52:51

that any amendments to the original approved plans are likely to be knocked back,

0:52:510:52:57

which leaves him with one option.

0:52:570:53:00

The only way forward is to repair the building as it stands

0:53:000:53:04

and convert it to the original plans, just take the front

0:53:040:53:07

of the building down and convert it into a garage and a flat above.

0:53:070:53:11

Although not what he ideally wanted, as it was the only way forward,

0:53:110:53:16

why hasn't Norman gone ahead with the work?

0:53:160:53:19

In the meantime, I have sold my property and bought a bungalow directly opposite.

0:53:190:53:25

So this has been very convenient to use as a building store and as a store for that project.

0:53:250:53:31

At least the building's not sitting doing absolutely nothing.

0:53:310:53:34

But a £16,000 store cupboard seems a tad excessive to me.

0:53:340:53:39

I hope Norman's still glad he bought it.

0:53:390:53:42

Yes, but with the climate, it is a burden but I will get over it

0:53:440:53:49

and convert it eventually.

0:53:490:53:53

So the bakery will be converted at some stage. You've got to love Norman's attitude.

0:53:530:53:58

# Que sera sera

0:53:580:54:01

# Whatever will be will be

0:54:010:54:05

# The future's not ours to see

0:54:050:54:08

# Que sera sera. #

0:54:080:54:11

Despite no work being done to the property so far, the frustrations around the planning issues

0:54:140:54:19

and the amount of time that's passed, Norman's undeterred

0:54:190:54:23

and is quite happy to do the renovation as and when.

0:54:230:54:26

We invited two local property experts

0:54:260:54:28

to have a look at the building and give their assessment.

0:54:280:54:32

I don't see the problem with the planners wanting the walls

0:54:320:54:36

to remain as are being a problem.

0:54:360:54:38

Particularly as the building's not listed.

0:54:380:54:40

I'm sure a compromise could be reached where the walls could be taken down

0:54:400:54:44

and rebuilt in similar stone to match the existing area.

0:54:440:54:48

The project is still a good idea.

0:54:480:54:50

However, the timing with the market, it won't hurt him to sit on it.

0:54:500:54:55

Norman purchased the property for £16,000 and if he manages to stay

0:54:550:55:00

within his proposed £20,000 budget, his total spend will be £36,000.

0:55:000:55:06

Once the property's complete, he plans to use the garage as a store for his building materials

0:55:060:55:11

and let the one bedroom flat out. So what kind of rent might the flat achieve?

0:55:110:55:17

Once the property is converted,

0:55:170:55:20

we could achieve £395 per calendar month.

0:55:200:55:23

I would expect it to achieve in the region of £450-475 per calendar month,

0:55:230:55:30

provided it is done to a good standard.

0:55:300:55:33

Those rental figures could turn the old bakery into a nice little earner. What does Neil think?

0:55:330:55:39

That's great. We thought anything over 350, so if you could get 395,

0:55:390:55:45

it'd be great, but obviously 450 is better.

0:55:450:55:48

And if they repair rather than rebuild the walls and convert the property

0:55:480:55:53

according to the existing plans, what could it be worth on the resale market?

0:55:530:55:59

Once fully converted, I think the property would probably reach between £59,000 and £65,000.

0:55:590:56:06

I would expect the property to be worth in the region of £80,000.

0:56:060:56:10

£80,000 is more near the mark, but we've got no intention of selling it.

0:56:100:56:15

We're going to rent the flat out and use the building.

0:56:150:56:18

I think the 65 is a good value, but the 80 would be brilliant.

0:56:180:56:22

So without getting too carried away, given that no work's been done yet,

0:56:220:56:27

it does look as if some money can be made here.

0:56:270:56:31

Norman's set on letting this one out and despite some of the headaches, he also still wants to build.

0:56:310:56:37

I don't think I'll ever stop building. I'll keep building.

0:56:370:56:42

That's dedication for you!

0:56:420:56:44

# Que sera sera. #

0:56:440:56:48

See you next time when we have more auction stories to inspire you.

0:56:530:56:57

-Yes, more stories from Homes Under The Hammer.

-See you then. Goodbye.

0:56:570:57:01

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0:57:080:57:11

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