Episode 97 Homes Under the Hammer


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Episode 97

Martin Roberts and Lucy Alexander visit a property in Woodhouse, Leeds; a house in Croydon, Surrey; and an old community centre in Lincolnshire.


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We all know that the price of property can go down as well as up,

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so it's really important to buy at the right price in the first place.

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And one good way to do that is to buy your home under the hammer.

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Well, if you'd like to have a go at buying at auction,

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but haven't done so far, then maybe now is the time to start.

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The market is always changing, so you have to judge when is the right time to buy.

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Today's bidders have already put their money where their mouth is. Here's what they bought.

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In Woodhouse, Leeds, a property that gets double thumbs up from me.

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I think it's got great potential. Yeah, really.

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In Croydon, Surrey, a house that needs tearing to shreds.

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Now you can see, oh my goodness, it needs ripping apart.

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And I fear it's time for this old community centre in Lincoln

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to exit stage left.

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Sadly, I think in reality it might be the final curtain call for this place.

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All of these properties were sold at auction, so we find out

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who bought them and what they paid for them when they went under the hammer.

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Sold.

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This is Leeds, birthplace of Chris Moyles

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and Scary Spice herself, Mel B.

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# Every boy and every girl Spice up your life... #

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Not only that, but this cosmopolitan city in Yorkshire is home

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to the biggest student population in the UK outside London.

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I'm in an area called Woodhouse, about a mile from Leeds city centre.

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It's a really popular area for students,

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as you can literally walk to the Leeds University campuses from here.

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And it's got great transport links into the city centre and some local shops.

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So what is there not to like?

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# Baby, I like it The way you move on the floor

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# Baby, I like it I-I-I-I like it

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# Baby I like it The way you move on the floor

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# Baby, I like it I-I-I-I like it... #

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Well, this is the more popular end of Woodhouse,

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and I'm excited to hear of a property that's up for auction.

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It's this end terrace over three floors and a basement.

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It was just £50,000. That's a very low guide price.

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I wonder what the reason is.

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# There must be a reason why I'm king of my castle

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# There must be a reason why I'm freeing my trapped soul

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# Must be a reason why I'm king of my castle

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# Must be a reason why I'm making examples of you... #

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There are no obvious structural problems from the outside,

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but guide prices like that are not without their reasons.

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Let's take a look inside to see what they are.

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Right.

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That'll be why, then.

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Severely fire-damaged.

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You're not kidding.

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Well, I can see so much when I'm wandering around,

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but the big question is how much damage has been done

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to the infrastructure of the house itself,

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and you can't tell that just by looking superficially.

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That needs a proper survey.

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Fortunately, no-one was injured in any fire here.

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It seems that the damage was caused by several small fires in each room,

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perhaps created for warmth by squatters, so the damage isn't as bad as it looks.

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So, look past the smokescreen,

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and the property actually has a lot to offer.

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The top floor offers some great views,

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and has space for a bathroom and two double bedrooms.

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On the first floor, there are another two decent sized rooms,

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with original fireplaces and space for what could be a bathroom.

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The ground floor also offers two good-sized bedrooms,

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and then there's the large basement with its three rooms.

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One of these used to be a kitchen,

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and the other is ideal for a living and dining room.

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But nothing is certain.

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As this property has been fire-damaged,

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the gas and electrics will need to be thoroughly checked by a professional,

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and don't forget that all-important structural survey.

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So let's assume that any professional report on this place

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comes back giving it the thumbs up.

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What could it actually be?

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Well, setting aside how it looks right now, this is a fantastic house, especially for this area.

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Because what you've got is lots of individual rooms

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which could be let, surprise, surprise, to students.

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But before you do that, you've got to take a lot of regulations into mind.

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HMO, house of multiple occupation.

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It's a licensable HMO because it's got four floors,

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and it's got the six rooms.

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So you're going to have to adhere to all sorts of regulations like fire regulations, ha ha!

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You're going to have to put in a certain number of bathrooms,

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a certain amount of kitchen facilities, sound insulation,

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fire alarms and things like that, so lots of work to be done.

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But in terms of profit, in terms of the space

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and in terms of everything else that this needs,

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I think it's got great potential.

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Yeah, really!

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So, a big house and a big renovation project to take on,

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but an enticingly low guide price of just £50,000.

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Let's hear what a local property expert thinks of it.

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The property is going to appeal to a range of buyers,

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particularly investors and parents buying for their son or daughter.

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Because of the close proximity to Leeds University, I think this is a very good investment.

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But how much would someone have to invest in it first?

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Depending on your contact with trades, I would suggest anything

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from £30-50,000 to improve it into a good quality accommodation.

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Once that money's spent and the work done,

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what could the financial returns be?

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Once it's completed, I'd be looking to place an asking price

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somewhere between £160,000 and £170,000.

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And rental?

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I would be looking at achieving around about £1,600 per calendar month to six tenants.

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Well, it's a property that clearly needs some attention.

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But if you can see through its current state,

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I think there's a fantastic moneymaking opportunity here.

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Good size, great location and a good guide price.

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

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The vacant six-bedroom mid-terrace house

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in need of complete renovation.

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Start me off at £55,000.

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At £55,000, 56.

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57? He will, in the door, 57. 58.

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With bidding fierce and competitive,

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we rejoin as the auctioneer reached £95,000.

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95. And a half.

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96. And a half. 97. And a half.

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98. And a half?

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At 98. And a half anywhere else?

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All finished, then, at £98,000 I am selling.

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For the first time...second...

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third and final time at £98,000.

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All done, thank you.

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That successful £98,000 bid came from 23-year-old Sapphire.

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She's just finished her degree in marketing,

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but like many other members of her family,

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has her sights set on a career in property developing.

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I met her back at her new four-storey house to see

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what she's got planned for this hidden gem.

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-Sapphire, lovely to meet you.

-Lovely to meet you.

-Congratulations. Well, sort of!

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-Slight wear and tear.

-A little bit of work to be done.

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Tell me why you wanted to buy this place.

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As a student investment, and we know the area.

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And it just seemed like a good house, good-sized rooms, things like that.

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-You have to see beyond the blackness.

-Quite.

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So tell me a bit more about you.

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Well, I finished uni,

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and then I basically came and started managing some student houses,

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and as I say, some of those needed work, so I managed the projects of those,

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and then from there we've bought a few, and just kind of expanded.

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Sapphire's never done a project this big before, but it doesn't faze her.

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She plans to complete it in a mere nine weeks,

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and wants to put some sparkle back into the place.

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Then she'll rent out the six bedrooms

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on the ground floor, first and second floor to students,

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and create a shared living area in the basement.

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There's certainly space to do that.

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But you do need to speak to the local council before doing a basement conversion.

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You must also comply with building regulations if you change the layout in any way.

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And there's even more to think about

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when dealing with a property that's been fire-damaged.

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With fire-damaged properties, you have to be careful. You don't know if the structure is damaged.

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What do you know about the structure, and what have you done to check it's OK?

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Well, we are getting a structural engineer in just to check.

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You can see it's sound, but you know, with regards to which ceilings need to come down,

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because some are cracked, but they're still sound.

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But we just want to do a proper job,

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so we'll get someone in to get further advice on that.

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Fantastic. Going into six rooms and four floors

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-brings you into the territory of houses of multiple occupation.

-Yes.

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What are you going to have to do to satisfy the requirements for that?

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I have filled in applications for those before and they've gone through.

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But obviously you've got to take into consideration your windows or the fire doors,

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um, there's some woodwork that will need fireproofing.

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So all of that we will take into account to comply with.

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-Right, but it will become a licensed HMO.

-Yes, definitely.

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Who does the project - is it you, is it you in conjunction with people?

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Well, I will probably find a team of builders. And this time...

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I usually, if it's a smaller project than this, I will project manage it.

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But at this scale I want a team to come in

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and have a manager that can do it. I'll just keep an eye on things, but really...

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Willing to pay the price for that?

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Yeah, exactly. I don't want to be managing one electrician

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with a plasterer, this, that and the other. I'd like a team so they know each other, so work together.

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Talk me through the finances then - how much is it going to cost?

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We're still getting quotes in.

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Um, but we're looking, hopefully, to spend no more than 40,000.

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But that's start to finish, with furniture and decor and everything like that.

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-And that's employing a project manager as well?

-Yes.

-Great.

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-What about other family being involved?

-I get good advice from,

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well, a lot of family - my mum, my uncle particularly.

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Um, I'm trying to get my younger brother to get a feel for things

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-and help out a bit. He'll kind of... He's only 15.

-Oh, wow!

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# One for my sister

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# One for my brother... #

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And it's younger brother Max who's keen to follow in Sapphire's footsteps.

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He's also a joint name on the mortgage,

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so has more than a passing interest in it.

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-So Max, congratulations, you're part of this then?

-Yes, I am.

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-What do you think about that?

-Eh, I think it's a pretty cool thing, really. It's good experience.

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Um, my whole family does it, from my grandma to my sister now.

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-Your grandma?

-Yeah. She was the one that sort of...

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..she owned lots of houses and then she gave it to my mum, who is her daughter obviously,

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and, like, my uncle, and they split the houses between them.

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-Now my mum's got our whole family into it.

-How old's your granny now?

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-She must be in her 90s, I think.

-Fantastic! So it's in your blood?

-Yeah, it is.

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It's quite an ambitious project for your first project. How do you feel about that?

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-Um...

-What did you think the first time you walk through the door?

-This is crazy!

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-Congratulations. Good luck.

-Thanks.

-I look forward to seeing how you get on.

-Should be interesting!

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# One for my sister

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# One for my brother, this one's for you

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# This one's for you. #

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Well, many 23-year-olds are more concerned with partying than property picking.

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And 15-year-olds playing computer games.

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But it seems the team of Sapphire and her brother

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are really going to get their teeth stuck into this project.

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It's an ambitious one, lots of work to be done

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and that £40,000 budget, it'll go like that.

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How will they get on? You can find out later in the show.

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I've travelled to Croydon in Surrey today,

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the birthplace of top model, Kate Moss.

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I'm hoping that the property I'm here to see has great proportions and great bone structure.

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Let's just hope it doesn't demand huge sums of money.

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# Girls on film

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# Girls on film

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# Girls on film... #

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I'm here to see a three-bedroomed mid-terrace house.

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It had a guide price of £130,000.

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The auction catalogue tells me this lot

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is a short distance from the University Hospital.

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That's interesting because it's flagging up the fact there's a strong rental demand in this area

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and that can only be a good thing.

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As for the house, from the outside, it doesn't look like it's an emergency case.

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I wouldn't say it's high risk.

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I hope the inside doesn't need intensive care.

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Oh! Well, Kate Moss may be a local girl but this certainly isn't model standards.

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In fact, it needs a good old slap of night cream, if you ask me.

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Look at the state of it, you've got a downstairs bathroom here and in this room...

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It's a good sized family lounge. You can see, oh my goodness, it needs ripping apart.

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The carpet needs to come up, the wallpaper needs to come off.

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The windows needs replacing... You need starting over.

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You've a fireplace here and you can see somebody's drawn all over it

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so you'll need some heavy duty cleaner to get all of that stuff off.

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A good space. You've got the kitchen leading off there.

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Again, not a bad area, you could get to work on that and really liven it up.

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You need to spend some money here.

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Overall, you need to take a good, long hard look at this property

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and go right back to the drawing board.

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And not just that, I think you'd have to go back to the bare brick as well.

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I imagine the plaster will need replacing

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and the kitchen, well, that's pretty tired.

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The bathroom, that's dead on its feet.

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This house needs someone to come in and wake it up with new fixtures and fittings

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and a skip-load of paint to enliven it.

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Even though this house is incredibly dated

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and it's in a right old state, what I do like is the fact you have

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little windows everywhere, letting in lots of light.

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Up here we have three bedrooms, two of a good size and this is the third.

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A bit strange because it's really, really small.

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You couldn't fit a single bed here, or here.

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Partition wall, you know what I'd be inclined to do, take this down,

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open the space up and just have one big impressive master bedroom.

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Imagine this as one big room. Double aspect and spacious.

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I know what I'd rather have and it really does seem like the best thing to do here.

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Otherwise, as things stand, this upstairs layout really is unacceptable.

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Then, you haven't seen the garden.

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# I beg your pardon

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# I never promised you a rose garden... #

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You'll have your work cut out clearing up this lot!

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Rubbish aside, it's a good size. Get out the secateurs and bow saw

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and this could be a fantastic bit of outside space.

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With its guide price of 130,000, has this place got what it takes to leave a mark on the market?

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We asked a local estate agent what he thought of it.

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This property needs full refurbishment. It needs a new bathroom, new kitchen.

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Well, probably the central heating will be need looking at.

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New windows, probably. Everything.

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Once the work's done, what sort of rental income could be achieved?

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This property would rent for around £850 to £900 per calendar month.

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And for resale?

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We would market this property at £170,000.

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There is a ceiling price on this road and the aim of the game here is not to exceed that.

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Therefore, the bathroom should stay downstairs because everything else in this property needs doing!

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Whoever takes this on may want to reconfigure the upstairs

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as bedroom three is teeny tiny.

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Let's see who's up for this challenge as we go to auction.

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Lot 80, where do we start?

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It looks a 150, at least, house to me.

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150 anywhere? 120, then? Do we go below 120? 120 on my right. 120.

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125? 125.

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130? 135.

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140, 141.

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142, 143. 144,

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145. 146?

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146. 147.

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147, 148?

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147 with you. 148? If not, 147.

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First-time... Second time...

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Third and last time, we all done? Sold, 147. Well done.

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It was Graham and Sue who got the lot with their successful bid of 147,000.

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Graham's a manager at facilities management company

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and his wife, Sue, is an office manager.

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If you think they look familiar, they appeared on the show in 2008

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when they bought and renovated their first auction property in Kent.

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I met them back at their latest Croydon purchase to catch up.

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Graham and Sue, we meet again!

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-We do.

-Yes.

-Three years on, you've bought another property. How's it been going?

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We haven't done anything since. This is our second property.

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Our son, Neil, took over the property

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and he is now the landlord and we have tenants in the existing property.

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Sue, what has inspired you to move on and get another one?

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Just loved doing it the first time and it doesn't seem possible it's three years,

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time has gone so quickly, but we decided this is the time we want to do another one.

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Rested enough, ready to do it again.

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The plan was to sell their previous renovation in Sittingbourne, Kent

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but the drop in the market forced them to reconsider

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and since then they've rented it out.

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# Get together and do it again #

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With this one, the couple feel it's the right time to step back into developing

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and they aim to sell it once they've done a good renovation.

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Want to bring it up to a nice good standard.

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Change all the windows... The kitchen and bathroom need

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a lot of attention and give it a new, modern feel to it.

0:20:230:20:27

I've noticed there's three bedrooms upstairs and an incredibly small bedroom.

0:20:270:20:32

-I'm guessing one of them has been partitioned off, am I right?

-That's correct.

0:20:320:20:36

What we're going to do there is, they're not really big enough for three bedrooms

0:20:360:20:40

so we're going to put it back to two.

0:20:400:20:42

What about the bathroom downstairs, do you think that will detract the value of this property?

0:20:420:20:46

What we're going to do there, we're going to enlarge it by pinching the hall

0:20:460:20:52

and making it longer so we can get a decent sized wash basin in there.

0:20:520:20:57

We won't really lose the hallway because we can use the lounge as the throughway to the kitchen.

0:20:570:21:03

-So you'll have to come in and come around and come through.

-Yes.

0:21:030:21:06

-You'll open up the bathroom and have more space.

-That's right.

0:21:060:21:09

-The bathroom is going to be in the middle of the house, isn't it?

-Yes.

0:21:090:21:13

We had looked about moving upstairs, but where the drains are, it's not really practical.

0:21:130:21:17

With space at a premium upstairs, I reckon Graham and Sue's plan

0:21:190:21:23

to expand the bathroom into the hall is fairly sound.

0:21:230:21:26

They have a healthy timescale of four months for the job, with 10,000 to spend on the renovations

0:21:260:21:31

but they also have a possible £3,000 for a conservatory which might be added as the work progresses.

0:21:310:21:38

Are you guys going to be working on this every day, is this your main focus?

0:21:410:21:45

We both work full-time so it's going to be evenings and weekends

0:21:450:21:49

but we've got a big workforce in family and friends.

0:21:490:21:53

And we live locally, whereas the previous property we had quite a distance to travel

0:21:530:21:57

and that did make quite a big difference.

0:21:570:21:59

We live just a few miles away, it'll make it easier for us

0:21:590:22:03

to get here and do work in the evening, as well as the weekends.

0:22:030:22:06

What's it like working closely with him?

0:22:060:22:08

Oh, well, we have a few ups and downs but we manage it somehow.

0:22:080:22:12

-He goes upstairs and I go downstairs.

-Perfect!

-Yes.

0:22:120:22:16

But, when it comes to decision-making, I reckon they'll always meet in the middle.

0:22:190:22:24

I'm wondering if selling the house is their final decision.

0:22:240:22:28

Now, guys, I know there's a university hospital nearby.

0:22:280:22:31

Is there any chance you might consider renting this out? Because the rentals are strong in the area.

0:22:310:22:37

I mean, if we couldn't sell it at a good price I think that's the only time we would say,

0:22:370:22:43

"Yes, OK, let's rent this one."

0:22:430:22:45

-The reason for selling it on, is that to get the cash to reinvest into another property?

-Yes.

0:22:450:22:50

-Definitely, that's what we'd like to do.

-Straightaway?

-We're looking to go straight into another one.

0:22:500:22:55

# Ain't no stopping us now We're on the move... #

0:22:550:23:01

Well, for Graham and Sue it seems full steam ahead,

0:23:010:23:05

not just for renovating this place but also forgetting their property developing future back on track.

0:23:050:23:10

Will Graham and Sue do all this for just £10,000 in four months?

0:23:120:23:18

And, will they spend a further £3,000 on a conservatory?

0:23:180:23:22

It may give the house the wow factor but will it add anything to the end value?

0:23:220:23:27

Personally, I don't think so.

0:23:270:23:30

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

0:23:300:23:33

Coming up, this community centre in Lincoln comes with restrictions.

0:23:340:23:38

This cannot be used as a restaurant, hotel or anywhere selling intoxicating liquor.

0:23:380:23:43

In Croydon, we discover Graham and Sue's secret to working in happy harmony.

0:23:440:23:50

I get sent out in the garden, Graham stays in the house.

0:23:500:23:54

But first, in Leeds, what does Max think of his sister's property developing talents?

0:23:550:24:01

I'm really impressed and proud of her. It's amazing.

0:24:010:24:04

Now we head to Leeds and student hotspot Woodhouse, to be precise.

0:24:080:24:13

Here, property developer, Sapphire had purchased this four-storey, six bedroomed property

0:24:130:24:18

at an auction for £98,000.

0:24:180:24:21

It had been badly fire damaged so renovating it would certainly be a challenge.

0:24:210:24:25

But not one that Sapphire was going to have to face alone.

0:24:250:24:28

-What about family being involved?

-I'm trying to get my younger brother to get a feel for things

0:24:300:24:35

-and help out a bit and he'll... He's only 15.

-Oh, wow!

0:24:350:24:40

So, a family refurbishment and one that Sapphire wanted done in double quick time

0:24:400:24:45

to have it ready to let out to students. She set herself a tight nine-week timescale

0:24:450:24:50

and 11 weeks after we first met her we have returned to see

0:24:500:24:54

if she's taken this place from shell to chic.

0:24:540:24:57

Wow, given the state it was in less than three months ago,

0:25:130:25:17

to have this place in such great shape, in such a short time, is pretty incredible.

0:25:170:25:22

The top and first floors have two bedrooms, each with newly fitted bathrooms.

0:25:220:25:27

The ground floor has a further two bedrooms.

0:25:270:25:31

And, where the real revelation is is in the basement, where there is now a communal lounge

0:25:310:25:37

and two rooms that have been turned into one large kitchen/diner.

0:25:370:25:42

So, originally this was two rooms. They had the kitchen and the second half was a coal room.

0:25:420:25:49

We've knocked it all through and we've made it a lot bigger

0:25:490:25:52

so we've got room for a dining table, as well.

0:25:520:25:54

We've got plenty of units for all the students' pots, pans and food.

0:25:540:25:58

We've got all new facilities and a brand-new kitchen.

0:25:580:26:00

This is absolutely ideal for student accommodation.

0:26:000:26:03

Just remember, if you're thinking about doing a basement conversion,

0:26:030:26:07

you must speak to the local council for advice on permissions or building regulations first.

0:26:070:26:12

If you plan to knock down any walls to open up an area, get the experts in.

0:26:120:26:17

You must be sure they're not supporting walls before unleashing your sledgehammer.

0:26:170:26:23

And, there have been more impressive changes upstairs, too.

0:26:230:26:27

This is the first floor bathroom, which we've completely redeveloped.

0:26:270:26:31

This was actually a wardrobe at the back here.

0:26:310:26:33

We've knocked through and created space for a bath with a shower over

0:26:330:26:37

whilst maintaining space for the toilet and sink as well.

0:26:370:26:41

So nothing becomes too cramped.

0:26:410:26:43

Sapphire also had to apply for an HMO licence

0:26:440:26:47

and comply with HMO regulations on points like fire safety.

0:26:470:26:51

She managed to achieve all of this in just seven weeks,

0:26:520:26:55

two weeks short of her original timescale.

0:26:550:26:59

What about her budget?

0:27:000:27:03

I've spent in total about 45,000.

0:27:030:27:07

My original budget was approximately 40. We're not far off

0:27:070:27:12

and I do know where the costs have gone. Things such as new gas supply, HMO licence,

0:27:120:27:17

also, the cost of skips and we had some scaffolding up, things like that.

0:27:170:27:21

It's not too bad.

0:27:210:27:23

What has she learned from this, her biggest property to date?

0:27:240:27:28

Doing this property has allowed me to make sure I feel confident starting a house from scratch

0:27:280:27:34

without electricity, or anything, and hopefully

0:27:340:27:37

I can apply those skills to other projects, which I'm keen to do.

0:27:370:27:41

And it's not the only way her confidence has grown.

0:27:410:27:45

Sapphire had considered getting a project manager on board.

0:27:450:27:49

I was the sole project manager throughout

0:27:490:27:52

but my main builder helped liaise with the electrician and the plumber who was separate from his work

0:27:520:27:57

and kept everyone running on time and made sure everyone was ahead of each other.

0:27:570:28:01

I came to the property every day to catch up with them,

0:28:010:28:04

and we were always in contact and it went quite smoothly.

0:28:040:28:07

# I work for my sister

0:28:070:28:09

# I work for my sister... #

0:28:090:28:11

Although she took charge, Sapphire's teenage brother Max also got stuck in.

0:28:110:28:16

Throughout the project, I helped with various things

0:28:170:28:20

like the colour scheme and design of the rooms, especially the main rooms like the kitchen and lounge.

0:28:200:28:26

Also, I did some cleaning around the house when we first got it because it was pretty messy.

0:28:260:28:33

And, I helped put some furniture together, as well.

0:28:330:28:36

What does Max think of his sister's work on the property?

0:28:370:28:41

I'm really impressed and proud of her. It's just amazing.

0:28:410:28:45

It's definitely something I'd like to follow up in the future.

0:28:450:28:48

Sapphire's spent a total of £143,000 here including the £45,000 renovation budget

0:28:480:28:55

but has it been a good investment?

0:28:550:28:58

Let's hear from two local estate agents.

0:28:580:29:00

I think the property is superb.

0:29:000:29:03

I think the owner's done a great job getting it done in the time she has.

0:29:030:29:07

It was a big job from start, a complete fire damage property.

0:29:070:29:10

Now she's produced quality, comfortable accommodation.

0:29:100:29:15

I think the house has been done exactly how students would like it.

0:29:150:29:19

It's the right layout. The bedrooms are in the right places.

0:29:190:29:22

It's got two bathrooms, a good-sized kitchen. It's spot-on for that market.

0:29:220:29:26

Not only did Sapphire get the work done quickly but she's already let out the six rooms.

0:29:270:29:33

As she was a little late to hit the student intake,

0:29:330:29:35

she's charging her tenants slightly less than she plans for the next academic year.

0:29:350:29:40

What could she be getting?

0:29:400:29:42

I think the rental value will be around £65 to £70 per week, per tenant.

0:29:420:29:46

I would expect this property to let at six students at £65 per person per week.

0:29:460:29:52

OK, well Sapphire's currently charging between £50 and £60 per room per week.

0:29:520:29:58

What did she think?

0:29:580:29:59

I'm hoping, when I market it next year, I'm going to be looking for 75 to 80.

0:29:590:30:05

Based on my previous letting experience, I'm very confident that we can reach that.

0:30:050:30:10

If we got 75 it would be a 16% return which, of course, I'm very happy with.

0:30:100:30:14

That is an impressive return.

0:30:140:30:17

However, if she wanted, Sapphire could consider selling the property, but at what price?

0:30:170:30:22

I think the resale value would be around £190 - £195,000.

0:30:230:30:28

As an empty property, I would place a figure in the region of £180,000.

0:30:280:30:33

If, however, the owner of the property could achieve a full let on this property, to six students,

0:30:330:30:38

I would place an asking price on this property somewhere in the region of £200 to £210,000.

0:30:380:30:45

Bearing in mind Sapphire's total outlay of 143,000,

0:30:450:30:49

that's a potential pre-tax profit of between 37 and 67,000,

0:30:490:30:54

depending on whether it's sold as a full let or not. Is she tempted?

0:30:540:30:59

What I think I might do, is let it out in January for the coming year and once it's let

0:30:590:31:03

put it on the market and see if anyone likes to buy it. If not, we'll hold onto it.

0:31:030:31:07

Good thinking.

0:31:070:31:10

Just a few miles from the beautiful historic centre of Lincoln is Ermine West.

0:31:190:31:25

This isn't so much Cathedral Quarter as 1950s local authority housing.

0:31:250:31:31

However, the prices are good and the location is not bad either.

0:31:310:31:35

So a large housing development with the convenience of local shops.

0:31:350:31:40

There are plentiful transport links to the city and if you peer over the rooftops,

0:31:400:31:44

you can even glimpse the Cathedral itself.

0:31:440:31:47

Estates like this were very much built with the community in mind and, of course,

0:31:470:31:52

local residents would need somewhere to have their coffee mornings, bring and buy sales

0:31:520:31:56

and mother and toddler groups.

0:31:560:31:58

Which is why community centres like this one were built.

0:31:580:32:02

It's this one that was up for auction.

0:32:020:32:04

A guide price of 80 to 90,000, 1,700 square feet, let's take a look inside.

0:32:040:32:10

It certainly sits on a big plot as well,

0:32:100:32:14

with substantial car parking at the back.

0:32:140:32:18

Despite some signs of neglect, it doesn't seem to be in particularly bad nick.

0:32:180:32:22

What have we got?

0:32:220:32:24

Well, come through the door, you've got loos there and into the main hall.

0:32:240:32:29

Great space. Look at the parquet floor.

0:32:290:32:33

It's a bit scratched but that would be absolutely beautiful sorted out.

0:32:330:32:37

It's a really nice sized room and pretty much as you might imagine.

0:32:370:32:41

It's got a kitchen area there and then up onto the stage.

0:32:410:32:46

It's all in pretty good condition, actually.

0:32:460:32:49

You can't help but imagine this place

0:32:490:32:52

when it was fully active, you know, trestle tables at the time of Coronation, celebrating.

0:32:520:32:58

Maybe the local amateur dramatic society putting on a play up here

0:32:580:33:02

or at Christmas, a nativity play with the kids from the local school, or even a panto.

0:33:020:33:07

My mind is buzzing.

0:33:070:33:09

Sadly, I think, in reality it might be the final curtain call for this place.

0:33:090:33:15

I don't know who would have the money to take this place on, pay for the upkeep

0:33:150:33:19

and maintain it for the community. I'm afraid we may have heard the last chords

0:33:190:33:24

from this little piano and the tea urn's stewed its last cup.

0:33:240:33:29

To put your hand in your pocket for this you would want more than loose change in return.

0:33:290:33:34

Let me put my hard-nosed developer's hat on for a minute.

0:33:350:33:39

Is there potential to make money out of this building?

0:33:390:33:43

I guess, one obvious option is to knock it down.

0:33:430:33:45

You'd have a very sizeable plot in a residential area.

0:33:450:33:48

You'd have to apply for planning permission, but I reckon, in this kind of space

0:33:480:33:52

you could build four or five very decent sized houses, which is probably what I'd go for.

0:33:520:33:58

So, given today's build costs, with the state of the market, I think you could do quite well.

0:33:580:34:03

This isn't a particularly high-value area but the guide price of £80 to £90,000

0:34:050:34:10

is reasonable for a 0.2 acre site like this.

0:34:100:34:13

With the market a bit tough, I'd advise against building a large number of small units

0:34:130:34:18

and stick to decent sized houses. Use your head and there could be some money in it

0:34:180:34:24

but my heart draws me back to the role this building plays in the community.

0:34:240:34:29

Could there be any way to make money from it as it is?

0:34:290:34:32

The space as it stands is pretty functional

0:34:320:34:36

and could be put to a variety of uses, pretty much as it is.

0:34:360:34:39

A playgroup maybe, a dance school or something.

0:34:390:34:42

The only restrictions are imposed by the council who are selling it

0:34:420:34:46

and there is a restrictive covenant saying this cannot be used as a restaurant, a takeaway,

0:34:460:34:50

a hotel or anywhere selling intoxicating liquor.

0:34:500:34:54

Quite right, too! There's a local community here to protect.

0:34:540:34:57

Ruling out the food and drink option could mean the death knell for this building

0:34:580:35:03

as whoever buys it will need to make money.

0:35:030:35:05

I can't imagine many small businesses,

0:35:050:35:07

such as playgroups, being able to afford it.

0:35:070:35:10

Despite its solid structure, I think the time has come for it to bow out.

0:35:100:35:15

Just to make sure,

0:35:180:35:19

we asked a local estate agent along to see what he thought.

0:35:190:35:23

Looking at this building, it appears to be in very good condition.

0:35:260:35:29

It's purpose-built, it's got good car parking out the back.

0:35:290:35:33

The nicest use for this building would be if a community group

0:35:330:35:37

come in and want to buy it for a club, or a children's nursery

0:35:370:35:43

or some use that makes the best of the existing building.

0:35:430:35:47

As an alternative, we may see it demolished for housing and that would probably

0:35:470:35:51

give the best financial return.

0:35:510:35:54

I think you could probably get four houses on this plot. What sort of value could each gross?

0:35:540:36:01

I would expect that a two bedroomed house is worth in the region of 80 or £90,000.

0:36:010:36:04

If the lot was bought close to the guide price of 80 to 90,000,

0:36:040:36:09

there's definitely money to be made and not just in resale.

0:36:090:36:13

The rental market in Lincoln is strong. We are looking at £400-£500 a month

0:36:130:36:18

for two and three bedroomed houses.

0:36:180:36:21

It's a solid and functional building that would suit all sorts of institutions and groups

0:36:210:36:28

and really could easily carry on its place in the community.

0:36:280:36:32

However, it's also a potentially quite valuable building plot

0:36:320:36:36

and if the guide price is anything to go by, there would be

0:36:360:36:40

some interest in the auction room from developers. Let's find out what happened.

0:36:400:36:44

Lot number 19.

0:36:440:36:46

This property is a community hall

0:36:460:36:49

and centre on the site of 0.2 of an acre.

0:36:490:36:53

£60,000 and let's make a start.

0:36:530:36:55

£60,000, 62, 64,

0:36:550:36:58

66, 68, 70, 72, 74,

0:36:580:37:03

75. At 76. At the back of the room, 77.

0:37:030:37:07

78, 79, 80.

0:37:070:37:10

At 81, 82, 83, 84, 85,

0:37:100:37:15

86, 87, 88, 89, 90.

0:37:150:37:20

At 91, 92, 93,

0:37:200:37:23

94, 95, 96.

0:37:230:37:27

Against you at the back at 96 seated. 97, 98.

0:37:270:37:30

At 98, you'll have to have another go. 99, £100,000.

0:37:300:37:36

Are we going again? At £100,000, once.

0:37:360:37:39

Twice, the third and final time of asking at £100,000.

0:37:390:37:44

Your lot, sir. Thank you.

0:37:440:37:48

The successful bid of £100,000 plus an additional 5,000

0:37:480:37:51

to cover the vendor's sale costs and fees came from Nigel.

0:37:510:37:55

He's a chartered surveyor, but also dabbles in development.

0:37:550:37:59

He bought this one with a friend who owns a construction company.

0:37:590:38:03

But it was Nigel and his architect, Ian, I met at the old community hall to find out its fate.

0:38:030:38:09

-Nice to meet you. You've got a community hall.

-Excellent!

0:38:090:38:12

Why did you want to buy it?

0:38:120:38:15

In the current market, we thought the price that we paid for the land was good value for money

0:38:150:38:19

and we saw it as an investment.

0:38:190:38:21

-You say, the land, you bought it for the land?

-Yes, we have.

0:38:210:38:25

We don't intend to continue with it being a community centre, I have to say.

0:38:250:38:29

We hope to develop it into residential housing.

0:38:290:38:32

-You're not into amateur dramatics or...

-Certainly not, no!

0:38:320:38:35

It's never been my forte.

0:38:350:38:38

-What kind of issues are involved in taking on a project like this?

-Quite a lot.

0:38:380:38:42

Without there being planning, our main concern is we get the right planning

0:38:420:38:47

for the site and get approval for it.

0:38:470:38:49

An overview of what you're going to do here?

0:38:490:38:51

At the moment, subject to what the architect says, we think

0:38:510:38:54

we can get six, 2/3-bed town houses on the property, stacked in a terrace,

0:38:540:39:00

that will have gardens and on-site parking.

0:39:000:39:03

Creating a terrace means Nigel really will be getting the most out of this plot.

0:39:030:39:08

I went outside with Ian, the architect, to discuss the outline plans in more detail.

0:39:080:39:14

So, Ian, it's your job to turn this, basically,

0:39:140:39:17

car park into something imaginative.

0:39:170:39:20

What have you done?

0:39:200:39:21

What we have been looking at, Martin,

0:39:210:39:24

is a terrace of essentially affordable homes that basically

0:39:240:39:28

reflects the existing properties in terms of scale and size, to the west and to the east.

0:39:280:39:35

It looks like they'd all have a reasonable amount of space, not huge, but they are terraces.

0:39:350:39:39

Absolutely, one of the aspirations of affordable and eco-housing

0:39:390:39:44

at the moment is to have some defensible space at the front of each door of each property.

0:39:440:39:49

-Defensible?

-Defensible space, it's really the aspect

0:39:490:39:54

of a two to three-metre strip in front of the front door.

0:39:540:39:58

It gives people a psychological well-being.

0:39:580:40:01

That's one of the aspects of the design that I've put into it.

0:40:010:40:05

It makes a lot of sense and, of course, it's not unusual to build houses

0:40:050:40:09

with space at the front and back.

0:40:090:40:11

What's different about the design of these is that they're eco-friendly.

0:40:110:40:16

All the building materials are either natural or from a renewable source.

0:40:160:40:20

Each has a high level of insulation to minimise heat loss.

0:40:200:40:25

Water would be conserved too, possibly through rainwater harvesting

0:40:250:40:30

and the fitted appliances would be energy efficient.

0:40:300:40:33

All this should work in their favour where planning permission is concerned,

0:40:330:40:37

and don't forget, this all hinges on that.

0:40:370:40:42

-All in all, are you hopeful?

-Very hopeful.

0:40:420:40:46

The City Council are very keen for affordable

0:40:460:40:50

and sustainable homes to be built.

0:40:500:40:53

We would target the people wishing to buy these sort of properties,

0:40:530:40:57

perhaps even people that live on this estate that are new families or newlyweds, that sort of thing.

0:40:570:41:04

There would be a willingness for people who've lived in this area for a very long time,

0:41:040:41:08

or second-generation to move into these homes.

0:41:080:41:10

It's all very interesting and, of course,

0:41:100:41:13

in that respect the development will be given back to the community.

0:41:130:41:18

The eco-friendly elements would minimise the impact on the environment.

0:41:180:41:21

What about the figures, are they as appealing?

0:41:210:41:25

Any idea of how much it's going to cost and the kind of finances of this project?

0:41:250:41:30

Yes, we do. I've got a build cost based on a programme of six terraced houses.

0:41:300:41:34

We've got a build cost of about 420,000.

0:41:340:41:38

What resale value do you think they'll have?

0:41:380:41:40

We think based on current market value, that the total six of them will be 690,000.

0:41:400:41:46

Right, so there's about 150 by the time you've taken off the costs.

0:41:460:41:49

-That's right, yes.

-What's the timescale for the project?

0:41:490:41:52

We'll need to go for full planning permission,

0:41:520:41:55

which in itself will take two or three months.

0:41:550:41:58

Once we got full planning, we'll be able to commence construction work on site

0:41:580:42:03

and we envisage that taking about six months.

0:42:030:42:06

From here, probably by the time we've finished, probably a good year, I would say.

0:42:060:42:10

-Good luck with it, anyway.

-Thank you.

0:42:100:42:12

-I look forward to seeing how you get on.

-Thank you.

0:42:120:42:15

So it looks like it is final curtain for the community centre.

0:42:150:42:19

For Nigel, though, it could be a nice little earner

0:42:190:42:22

and he is giving back to the community by building that affordable housing.

0:42:220:42:26

But only if he gets the planning permission.

0:42:260:42:29

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

0:42:290:42:32

Well, time is a healer but it can be an enemy

0:42:360:42:39

if you're up against a deadline.

0:42:390:42:41

-What has happened to those properties?

-Time to find out.

0:42:410:42:45

We're back in Croydon, Surrey, now, where property loving couple Graham and Sue

0:42:450:42:51

purchased this three-bed wreck for 147,000 at an auction.

0:42:510:42:56

It needed renovation but they weren't scared off by the challenge of fitting

0:42:560:43:01

and refitting around their busy lives.

0:43:010:43:03

Are you going to work on this every day? Will this be your main focus?

0:43:030:43:07

We both work full-time, so it's going to be evening and weekends.

0:43:070:43:11

We've got a big workforce in, family and friends.

0:43:110:43:15

'Confident they could call on reinforcements

0:43:150:43:19

'and get this place done and dusted within four months,

0:43:190:43:22

'we're back six and a half months later to see how they fared.'

0:43:220:43:25

Downstairs, they've made the bathroom bigger and better

0:43:320:43:35

by extending into what was the hallway.

0:43:350:43:39

It still needs finishing off, as does the kitchen,

0:43:390:43:42

which has been ripped out, and on the way to a new, lovelier look.

0:43:420:43:47

The living room has been entirely redecorated,

0:43:470:43:50

and French doors added at the back,

0:43:500:43:53

as there's still the possibility of putting on a conservatory.

0:43:530:43:56

Personally, I like that it leads straight into the garden.

0:43:560:44:00

Certainly not what it was like when I was there.

0:44:000:44:03

When we purchased the property,

0:44:100:44:13

I don't think we realised what the garden was, in its size.

0:44:130:44:17

There was so much rubbish in the garden,

0:44:170:44:20

that had been turned out from the house.

0:44:200:44:23

We found parts of cars.

0:44:230:44:26

So much stuff in the garden, on the garden.

0:44:260:44:28

We didn't know there was grass and a path.

0:44:280:44:31

Spent a lot of time clearing it,

0:44:310:44:33

and were amazed at the size of the garden.

0:44:330:44:37

We sowed the grass seed,

0:44:370:44:38

and it's grown and looks amazing now, I think.

0:44:380:44:41

It looks so different.

0:44:410:44:42

Can't believe we've got the size of garden we have.

0:44:420:44:45

We're very pleased with it, and very proud.

0:44:450:44:48

My mum, who's a keen gardener,

0:44:480:44:50

is also very proud we've managed to achieve this.

0:44:500:44:53

They weren't kidding when they said their family would help out.

0:44:530:44:57

Sue's mum may be 82, but she helped make this garden glorious.

0:44:570:45:01

Upstairs, there were three bedrooms,

0:45:040:45:06

but two were tiny!

0:45:060:45:08

Would bigger be better?

0:45:080:45:11

Originally, this was three bedrooms.

0:45:110:45:15

Where I'm standing now was the lobby.

0:45:150:45:18

This doorway, which you can't see, has now been boarded up.

0:45:180:45:22

We've recreated this doorway, here.

0:45:220:45:25

Then, moving into the large bedroom,

0:45:250:45:29

there was a partition across here,

0:45:290:45:31

which left a small, long bedroom, which was not really practical.

0:45:310:45:37

Now we've turned this into a large master bedroom.

0:45:370:45:41

We're really happy with it.

0:45:410:45:42

And so they should be,

0:45:420:45:44

given the graft that went into this gaff.

0:45:440:45:47

It WAS hard going.

0:45:470:45:48

It seems like recently each weekend we've been here.

0:45:480:45:51

Sometimes I thought, "Are we ever going to finish,

0:45:510:45:54

"and will it look like any decent work's been done here?"

0:45:540:45:58

But now, very pleased with how it's turned out.

0:45:580:46:01

They've done a refurb before,

0:46:010:46:03

as well as renovating some of their own properties,

0:46:030:46:06

so they have a well-established way of working together.

0:46:060:46:09

I get sent out in the garden. Graham stays in the house.

0:46:090:46:13

-For the whole day.

-SHE LAUGHS

0:46:130:46:15

-I think that works quite well, actually.

-It does.

0:46:150:46:18

Sue and Graham weren't able to start straightaway.

0:46:180:46:21

But it's taken four months to get to this stage.

0:46:210:46:24

They've come in UNDER their ten grand budget,

0:46:240:46:28

as they spent just £7,500.

0:46:280:46:30

Added to their purchase price of £147,000,

0:46:300:46:33

that's a total outlay of £154,500.

0:46:330:46:38

Time to see what two local estate agents think of it.

0:46:410:46:45

The vendors have done a really good job. We can see in the garden,

0:46:450:46:49

which is great.

0:46:490:46:50

The house sits on a really large plot,

0:46:500:46:53

and it's nice to see the space that's actually here.

0:46:530:46:55

I think it's done really nicely, so far.

0:46:550:46:58

Once the kitchen and bathroom are finished to that standard,

0:46:580:47:01

it'll be a lovely house.

0:47:010:47:03

But, will it see a lovely return?

0:47:030:47:06

Remember, they've spent just under £155,000

0:47:060:47:09

and want to sell it on.

0:47:090:47:12

We could market this property

0:47:120:47:14

at £199, 950.

0:47:140:47:17

You could put this on the market for £185,000 to £190,000.

0:47:170:47:22

-Wow!

-That's good.

-Really pleased with that. Very pleased.

0:47:220:47:25

We are, actually. We thought it would be less than that.

0:47:250:47:28

-Well pleased.

-Worth all the effort.

0:47:280:47:31

With their £154,500 outlay,

0:47:310:47:34

the pre-tax profit here could be somewhere between £30,500

0:47:340:47:39

and £45,450, less the usual selling expenses.

0:47:390:47:45

If it doesn't sell, they would consider renting it.

0:47:450:47:48

What sort of numbers are we talking for that?

0:47:480:47:52

We would market this property for rental purposes

0:47:520:47:55

at £950 per calendar month.

0:47:550:47:57

I think you'd be able to rent this out for £900 to £950

0:47:570:48:00

per calendar month.

0:48:000:48:02

-It's very good as well.

-VERY good.

0:48:020:48:04

We hadn't thought too much about how much we would get,

0:48:040:48:08

-but I would have thought less.

-We're very pleased with that.

0:48:080:48:11

-That's worth considering.

-Definitely.

0:48:110:48:13

That yield of around 7 to 7.5%

0:48:130:48:17

could be just the ticket.

0:48:170:48:19

The rental market is buoyant in this area,

0:48:190:48:21

so it's a great fall-back if it proves hard to sell.

0:48:210:48:24

What about going to another auction?

0:48:240:48:27

-Yes, we'd go back to auction again.

-Definitely.

0:48:270:48:30

We enjoy it. We get catalogues every month,

0:48:300:48:33

and we keep looking.

0:48:330:48:36

Earlier, we were in Ermine West in Lincoln,

0:48:400:48:43

where chartered surveyor, Nigel, purchased

0:48:430:48:46

this disused community centre for £100,000 at an auction.

0:48:460:48:50

'He and his business partner run a development firm,

0:48:500:48:53

'alongside their full-time jobs,

0:48:530:48:55

'and saw this place as a great opportunity.'

0:48:550:48:58

The price we paid for the land was good value for money,

0:48:580:49:01

and we saw it as an investment.

0:49:010:49:03

You say, "the land". You bought it for the land?

0:49:030:49:06

Yes. We don't intend to continue with it being a community centre.

0:49:060:49:10

We hope to flatten it, and develop it into residential housing.

0:49:100:49:13

So, you're not into amateur dramatics?

0:49:130:49:15

Certainly not! It's never been my forte.

0:49:150:49:18

'Nigel planned to build a terrace of six houses on the plot,

0:49:180:49:22

'once the existing building had been demolished.'

0:49:220:49:25

He expected to spend around £420,000,

0:49:250:49:29

and do the work in six months.

0:49:290:49:31

That was based on getting the required planning permission

0:49:310:49:34

with minimal drama, within three months.

0:49:340:49:37

But we're back here two years and four months

0:49:370:49:39

after we met Nigel.

0:49:390:49:41

And... Oh, dear!

0:49:410:49:44

These are not the "before" shots, but the site as it was when we returned.

0:49:440:49:48

A distinct lack of houses,

0:49:480:49:51

and the community centre still standing.

0:49:510:49:53

On the plus side, at least it's looking a touch sunnier.

0:49:530:49:57

# Don't bring around a cloud To rain on my parade... #

0:49:570:50:02

But what about Nigel?

0:50:020:50:03

Did that planning permission rain on HIS parade?

0:50:030:50:07

It's been a difficult process getting it through planning.

0:50:070:50:10

It's taken a long time to get the right scheme for this.

0:50:100:50:12

He's not wrong.

0:50:120:50:15

Initially, he got outlined plans approved for six flats

0:50:150:50:18

and four houses on the site,

0:50:180:50:20

on condition it included social housing,

0:50:200:50:22

working in conjunction with the local housing association.

0:50:220:50:26

But, because of the economic downturn,

0:50:280:50:31

he found it hard to get ANY housing association with the money to collaborate.

0:50:310:50:35

So, it was back to the drawing board.

0:50:350:50:38

We had to go back round the planning process,

0:50:380:50:41

to develop the site for the open market.

0:50:410:50:43

That took time, patience and energy to get that through the system.

0:50:430:50:48

But we've done it, and we're happy with the result.

0:50:480:50:50

Now he has that all-important planning permission

0:50:500:50:53

for two pairs of two bedroom townhouses.

0:50:530:50:57

And a block of six two bedroom apartments,

0:50:570:50:59

and there's no stipulated tie-in to social housing.

0:50:590:51:03

This is where the two bedroomed townhouses are going to go.

0:51:040:51:09

At the front, facing the main road

0:51:090:51:11

is the main development,

0:51:110:51:13

which consists of two bedroomed townhouses on either side.

0:51:130:51:17

Then, with six apartments on a three storey level in the middle.

0:51:170:51:22

There will be off-street parking to the back, here,

0:51:220:51:24

which will facilitate off-street parking for both the townhouses

0:51:240:51:28

and the apartments.

0:51:280:51:30

It sounds like Nigel and his business partner really ARE

0:51:300:51:33

going to make the most of the space.

0:51:330:51:36

When I first visited the centre,

0:51:360:51:39

part of me had hoped someone would take it back to its former glory.

0:51:390:51:42

We did have a potential buyer for the community centre as it is.

0:51:420:51:47

They wanted to use the existing building,

0:51:470:51:50

but unfortunately we couldn't make a deal with them,

0:51:500:51:53

so it looks like it will have to be demolished.

0:51:530:51:56

Before we do that, we will salvage some of the items from the building.

0:51:560:52:00

The lovely parquet flooring, we will take up and probably use at home.

0:52:000:52:05

There's some smashing Belfast sinks we'll use.

0:52:050:52:07

Other than that, unfortunately it will have to be demolished.

0:52:070:52:10

Despite shattering my dreams of getting to play a panto villain,

0:52:100:52:15

I'm delighted to hear some features of the centre

0:52:150:52:18

will live on elsewhere.

0:52:180:52:20

The potential purchasers weren't the only ones with a funding dilemma.

0:52:200:52:25

There were further delays for Nigel and his partner

0:52:250:52:28

when they couldn't get funding from the bank.

0:52:280:52:31

Though they have put the site, plus planning permission, on the market,

0:52:310:52:35

they hope they'll be able to realise those plans themselves.

0:52:350:52:39

We're quite relaxed. We realise how difficult it is to get funding now,

0:52:390:52:43

so we're going to wait and see if the market improves,

0:52:430:52:45

and get funding in the future.

0:52:450:52:47

Fortunately, they can afford to wait.

0:52:530:52:56

Property development is a sideline for Nigel

0:52:560:52:59

and his business partner,

0:52:590:53:01

so they're under no pressure to sell.

0:53:010:53:03

After all the delays and effort in getting that all-important planning,

0:53:050:53:10

it would be a shame if they couldn't see the project through.

0:53:100:53:12

We think the development will sit nicely with the surrounding area.

0:53:120:53:16

We see it as low cost affordable housing.

0:53:160:53:20

It's a similar development to what's being built round the corner

0:53:200:53:24

by a national developer.

0:53:240:53:25

We're hopeful the scheme will sell well.

0:53:250:53:28

Here's hoping. We asked two Lincoln estate agents to look at the site,

0:53:280:53:31

and tell us what they thought about its potential.

0:53:310:53:34

The units planned for the site are ideal.

0:53:360:53:40

I think a builder will see that as a potential

0:53:400:53:43

for sales within a reasonably short period after development.

0:53:430:53:49

The proposed development is on a known council estate,

0:53:490:53:52

so there would be a ceiling price for the proposed properties.

0:53:520:53:55

But it would stand out in local competition, so should fare well.

0:53:550:53:58

With that ceiling price in mind, let's talk numbers.

0:53:580:54:03

Nigel and his business partner spent £100,000 at auction on the building,

0:54:030:54:07

plus £5,000 to cover the vendor's costs.

0:54:070:54:10

And around £10,000 on the work they've done so far.

0:54:100:54:13

Add that to the estimated build costs of £420,000,

0:54:130:54:17

and another £7,000 or so on demolishing and clearing up,

0:54:170:54:20

makes a proposed total outlay of around £542,000.

0:54:200:54:26

So, if the development goes ahead,

0:54:260:54:28

what price could the proposed units reach?

0:54:280:54:32

The units in question would achieve somewhere around £100,000 per unit.

0:54:320:54:37

That's four townhouses, two bedroomed, at £100,000 each.

0:54:370:54:42

And six two bedroomed flats,

0:54:420:54:44

at between £90,000 to £100,000 per unit.

0:54:440:54:46

I think the finished product of the small townhouses

0:54:460:54:50

is likely to achieve something in the region of £90,000 to £100,000.

0:54:500:54:55

The plan is to develop six apartments,

0:54:550:54:58

which are likely to achieve in the range £70,000 to £80,000.

0:54:580:55:03

The £70,000 we would say is low, and the £100,000 was high.

0:55:030:55:08

We thought about £85,000 for the flats.

0:55:080:55:10

That's a reasonable valuation for the townhouses.

0:55:100:55:13

We thought around £105,000, so I'm quite happy with that.

0:55:130:55:16

Let's tot those figures at the higher and lower ends up.

0:55:160:55:21

The combined valuation for the four townhouses and six flats

0:55:210:55:24

is an estimated £780,000 to £1 million.

0:55:240:55:27

If, and it's a big if,

0:55:270:55:31

all goes to plan, and to budget, and all units are sold,

0:55:310:55:34

Nigel could make a gross profit of between £238,000 and £458,000,

0:55:340:55:41

excluding selling expenses.

0:55:410:55:43

For the moment, however,

0:55:430:55:45

although not his preferred option,

0:55:450:55:48

the site is up for sale as it is.

0:55:480:55:50

What do the estate agents make of that?

0:55:500:55:52

As the development stands, without line planning permission,

0:55:520:55:56

I would expect it to be worth between £200,000 to £250,000.

0:55:560:56:00

It's likely the price achieved will be £160,000 to £175,000.

0:56:000:56:06

If we took a valuation between those two land valuations,

0:56:060:56:10

at say £200,000,

0:56:100:56:11

that would give us around a £90,000 profit on the sale of the land,

0:56:110:56:16

which would be a good profit for the effort and time we put into it.

0:56:160:56:20

It's been hard work, but that would be a nice reward.

0:56:200:56:24

If we develop it through, we'd hope to realise a higher profit.

0:56:240:56:28

# I'm going to take my time... #

0:56:280:56:32

After two years of planning, graft and patience,

0:56:320:56:34

has Nigel's enthusiasm for this place dwindled?

0:56:340:56:38

We think it has excellent potential, and is an ideal location.

0:56:380:56:42

We think Lincoln is desperate for this development,

0:56:420:56:44

so we'll bide our time, and hopefully maximise the profit.

0:56:440:56:48

That's it for now. We'll be back next time with more action

0:56:500:56:53

from auction rooms around the country.

0:56:530:56:56

Make sure you watch Homes Under The Hammer.

0:56:560:56:58

-We'll see you then.

-Goodbye.

-Goodbye.

0:56:580:57:00

Subtitles by Red Bee Media Ltd

0:57:210:57:24

Martin Roberts and Lucy Alexander visit a property in Woodhouse, Leeds; a house in Croydon, Surrey; and an old community centre in Lincolnshire. All of these properties have been sold at auction; Martin and Lucy find out who bought them, and what they paid when they went under the hammer.