0:00:00 > 0:00:03Hello! Even with the current volatile property market,
0:00:03 > 0:00:05people are still hooked on buying.
0:00:05 > 0:00:07And that includes Lucy and me.
0:00:07 > 0:00:14We particularly love the auctions where thousands of people each year buy their homes under the hammer.
0:00:38 > 0:00:43We are constantly amazed by the stories that come out of the auction rooms.
0:00:43 > 0:00:48Some real life successes and some real life dramas.
0:00:48 > 0:00:52So let's see what inspired our buyers on today's show.
0:00:53 > 0:00:59In Sittingbourne, Kent, find out how this quirky wreck on an incredibly noisy plot
0:00:59 > 0:01:02was transformed and tripled its value.
0:01:03 > 0:01:08In Cumbria, this old care home has been unloved for years
0:01:08 > 0:01:11which might explain its price tag of just £55,000.
0:01:14 > 0:01:16And if you thought that was a bargain,
0:01:16 > 0:01:18how about a two-bedroomed flat in London
0:01:18 > 0:01:20for under 150 grand.
0:01:20 > 0:01:22Was it too good to be true?
0:01:24 > 0:01:27All these properties have been sold at auction.
0:01:27 > 0:01:30We'll find out who bought them and what they paid for them
0:01:30 > 0:01:32when they went under the hammer.
0:01:32 > 0:01:33Sold!
0:01:37 > 0:01:40This is Sittingbourne in Kent, midway between London and Dover.
0:01:40 > 0:01:43It was once a centre of brick making.
0:01:43 > 0:01:47Today it's more likely that the transport links will attract you to this part of the world.
0:01:47 > 0:01:51The property I'm here to see today is just outside Sittingbourne
0:01:51 > 0:01:55in a little village with the very cute name of Bobbin.
0:01:55 > 0:01:58But funnily enough, it doesn't feel like a little village
0:01:58 > 0:02:02because we are right here on this busy main road
0:02:02 > 0:02:04which leads directly down to the M2
0:02:04 > 0:02:07which is obviously full of fast, noisy cars.
0:02:07 > 0:02:10The property itself is here,
0:02:10 > 0:02:12right on the fringes of this road.
0:02:12 > 0:02:16The guide price - 95 to £105,000.
0:02:16 > 0:02:18MUSIC: "Shout" by Lulu
0:02:27 > 0:02:31So with all this traffic, it's not the greatest of starts!
0:02:31 > 0:02:34WHISPERS: Sorry, it's not the greatest of starts.
0:02:34 > 0:02:38And this house, on a corner plot, rather stands out against the new builds
0:02:38 > 0:02:40that sit in the quieter side streets.
0:02:40 > 0:02:44But could the inside of this lot make it a good shout?
0:02:44 > 0:02:47First things first. What would I do if I moved in here?
0:02:47 > 0:02:49Not single, not double,
0:02:49 > 0:02:52quadruple, double quadruple glaze those windows
0:02:52 > 0:02:54so you don't hear that noise.
0:02:54 > 0:02:57OK. Let's move on and see what we've got.
0:02:57 > 0:03:00This could be quite a delightful room.
0:03:00 > 0:03:03You've got all these lovely beams in here, a little fireplace there.
0:03:04 > 0:03:06But here's a big problem.
0:03:06 > 0:03:08You can see there's been some sort of water leak
0:03:08 > 0:03:11and there's a lot of rotting going on here.
0:03:11 > 0:03:14Look at this, the plaster is just falling off
0:03:14 > 0:03:17and there's a fungus-type web growing up here.
0:03:17 > 0:03:19I would get this looked at by a professional,
0:03:19 > 0:03:24because that could be worrying signs of rot, damp, I don't know what.
0:03:24 > 0:03:27There's a very small kitchen leading off this room.
0:03:27 > 0:03:29Quite dinky, serves its purpose.
0:03:29 > 0:03:31But a little bit small.
0:03:31 > 0:03:33Then towards the back of the property,
0:03:33 > 0:03:38it is incredible how much quieter it is in this room.
0:03:38 > 0:03:40This is a really nice room.
0:03:40 > 0:03:44Again, lovely beams, a great window there. A fireplace.
0:03:44 > 0:03:47It might end up being a bit of a corridor along here
0:03:47 > 0:03:50because there are the stairs leading to the bedrooms.
0:03:50 > 0:03:54Through here we've got a little cubby hole, and some storage.
0:03:54 > 0:03:58Downstairs bathroom. Again, very small.
0:03:58 > 0:04:01The loo. I suppose you could knock those two into one.
0:04:01 > 0:04:06And some very useful storage space behind. A utility there, which is great.
0:04:06 > 0:04:08It's interesting, that's for sure!
0:04:08 > 0:04:11I'd like to see what's going on upstairs.
0:04:14 > 0:04:18So there's damp and rot, and no central heating.
0:04:18 > 0:04:22Plus what's going on downstairs isn't great.
0:04:22 > 0:04:26Yet despite its condition, I think this place could be pretty decent.
0:04:26 > 0:04:29Especially if you moved the bathroom upstairs.
0:04:29 > 0:04:31You could then knock the kitchen through
0:04:31 > 0:04:35and make one good-sized room. Could that be done?
0:04:35 > 0:04:38Now, this is where I would put the bathroom.
0:04:38 > 0:04:40It's a rather small, awkward room.
0:04:40 > 0:04:42I don't think it works terribly well as a bedroom.
0:04:42 > 0:04:46You've got the kitchen below, so plumbing shouldn't be a problem.
0:04:46 > 0:04:48That would leave you two bedrooms upstairs.
0:04:48 > 0:04:50I think that's the way to go.
0:04:50 > 0:04:54Excuse me while I step over this precarious board here,
0:04:54 > 0:04:57into one of the main bedrooms.
0:04:57 > 0:05:00It's a really nice room. It's got a lovely feel to it.
0:05:00 > 0:05:02You've got a beam and a nice fireplace.
0:05:02 > 0:05:06A bit of character. An old immersion heater
0:05:06 > 0:05:08that I suspect has been leaking.
0:05:08 > 0:05:12So that could be the source of the problem downstairs.
0:05:12 > 0:05:18I would still recommend an expert come out and have a look at that damp area downstairs.
0:05:18 > 0:05:20But it's really nice up here.
0:05:20 > 0:05:22It feels very welcoming, very homely.
0:05:30 > 0:05:32I know it might be hard to believe,
0:05:32 > 0:05:35but this really could be made into a super home.
0:05:35 > 0:05:38Underneath the dilapidated state
0:05:38 > 0:05:40are all the bare bones. Old beams,
0:05:40 > 0:05:44fireplaces and interestingly-shaped rooms.
0:05:44 > 0:05:46Then there's the outside space.
0:05:47 > 0:05:49I don't want to keep going on about this,
0:05:49 > 0:05:52but this really is a major problem.
0:05:52 > 0:05:57You can't see the road from here, but boy, can you hear it!
0:05:57 > 0:05:59I mean, what is a garden for?
0:05:59 > 0:06:02Somewhere to sit outside, have a tranquil space,
0:06:02 > 0:06:04have your friends round.
0:06:04 > 0:06:08I certainly won't be in my deck chair over there in the summer months.
0:06:16 > 0:06:20It's such a shame. Once upon a time, this was a farm property.
0:06:20 > 0:06:23Can you believe it was surrounded by fields?
0:06:23 > 0:06:28I think this noisy neighbourhood will undoubtedly put off potential purchasers.
0:06:28 > 0:06:32This house is going to have to wow to compensate.
0:06:34 > 0:06:37What does a local estate agent make of this mixed bag?
0:06:40 > 0:06:42Well, quite a lot of work is required here.
0:06:42 > 0:06:44But there's some character. Some beams and fireplaces.
0:06:44 > 0:06:47So it'll be interesting to see how this one comes out.
0:06:47 > 0:06:50And the road? How big a factor is it?
0:06:50 > 0:06:57We find locally that the busy road will put off quite a number of buyers.
0:06:57 > 0:07:02It might make the property slower to sell than it would otherwise be.
0:07:02 > 0:07:04Well, no surprises there, really.
0:07:04 > 0:07:06But if you did find the right buyer,
0:07:06 > 0:07:12what could this house, that was guided at 95 to 105,000 sell for
0:07:12 > 0:07:13once fully renovated?
0:07:13 > 0:07:19I think the value could rise to somewhere around 215 to £220,000.
0:07:19 > 0:07:23Well, those re-sale values are certainly encouraging.
0:07:23 > 0:07:25What about renting it out?
0:07:25 > 0:07:27The rental market is very strong in the local area.
0:07:27 > 0:07:30There wouldn't be any problem letting this property.
0:07:30 > 0:07:35I'd expect to achieve somewhere around 750 to £800 per calendar month.
0:07:39 > 0:07:45A character home in a reasonably desirable area with money to be made.
0:07:45 > 0:07:48If you've got the patience and passion for period property
0:07:48 > 0:07:50and some ear plugs!
0:07:50 > 0:07:52Let's find out who did at the auction.
0:07:57 > 0:08:01Lot 39 us a detached cottage. Refurbishment and modernisation.
0:08:01 > 0:08:04Three bedrooms on the corner plot.
0:08:04 > 0:08:06Start me midway. 100,000.
0:08:06 > 0:08:08Thank you, sir. £100,000 I'm bid.
0:08:08 > 0:08:10105. 110.
0:08:10 > 0:08:14110. 115. 115. 120.
0:08:14 > 0:08:17125. 125. 128.
0:08:17 > 0:08:19130. 132.
0:08:19 > 0:08:22132 in a fresh place. 135.
0:08:22 > 0:08:24135 in a fresh place.
0:08:24 > 0:08:25138.
0:08:27 > 0:08:29138. Gentleman on the left again.
0:08:29 > 0:08:32138. 139 for you?
0:08:33 > 0:08:35At 138,000, then.
0:08:35 > 0:08:38For the first time at 138,000.
0:08:38 > 0:08:41For the second time at 138,000.
0:08:41 > 0:08:46Third and final time. 138,000. Are you all done?
0:08:46 > 0:08:49Sold at 138,000. Congratulations.
0:08:52 > 0:08:54So for 138,000
0:08:54 > 0:08:56it was Derek and his wife Karen
0:08:56 > 0:08:59who bought the three-bedroomed detached Kent house.
0:08:59 > 0:09:01Derek is a plasterer by trade
0:09:01 > 0:09:03and owns his own plastering company.
0:09:03 > 0:09:06He already has a small portfolio of properties.
0:09:06 > 0:09:09He'll get help on this refurbishment from his middle son, Andrew,
0:09:09 > 0:09:12who also works for the company.
0:09:12 > 0:09:14I met up with both of them to find out more.
0:09:17 > 0:09:20Derek and Andrew, congratulations.
0:09:20 > 0:09:23Tell me, who spotted this? Who wanted to buy it?
0:09:23 > 0:09:28We spotted it, myself and my wife in a catalogue.
0:09:28 > 0:09:32It was a little bit quick. We had to sort of rush into it.
0:09:32 > 0:09:36We went to view the property and went to the auction the day after.
0:09:36 > 0:09:41- So it was a little bit rushed. Originally we went to see one at Herne Bay.- OK.
0:09:41 > 0:09:46And this was a secondary one that we called in at on the way home on the off-chance.
0:09:46 > 0:09:47Then we were pleasantly surprised.
0:09:47 > 0:09:51A detached place. We thought this was the one to go for.
0:09:51 > 0:09:55- Are you local?- We're about 60 miles away in Hertfordshire.
0:09:55 > 0:09:59- Ooh.- So it's a bit of a travel, but it's not too bad.
0:09:59 > 0:10:01I know you guys work together. You're in the trade, aren't you?
0:10:01 > 0:10:04Yeah, we're both plasterers, family business.
0:10:04 > 0:10:08My dad started out and I sort of went along with it.
0:10:08 > 0:10:13- Went from there.- My wife, Andrew's mum, she likes getting involved,
0:10:13 > 0:10:15decorating and designing and all the lady bits.
0:10:15 > 0:10:18So she'll be along doing it with us.
0:10:18 > 0:10:21- So it really is going to be a family affair.- Definitely.
0:10:22 > 0:10:25'It's great to hear that they'll be getting stuck in here.
0:10:25 > 0:10:27'Because there's plenty to be done!
0:10:27 > 0:10:30'And I do have to mention the elephant in the room.
0:10:30 > 0:10:32'Or, rather, the one outside!'
0:10:32 > 0:10:36It's on a main road. Did that not put you off, first and foremost?
0:10:36 > 0:10:38It did a little bit,
0:10:38 > 0:10:40but it's such a quirky property,
0:10:40 > 0:10:43that with double glazing it'll quieten the noise down a bit
0:10:43 > 0:10:46and it is detached and on its own. I think someone will fall in love with it.
0:10:46 > 0:10:49I think it's going to be a bit of a hard one.
0:10:49 > 0:10:52You could love it, but if you're six foot, you won't be able to live in it.
0:10:52 > 0:10:56But I think it's a lovely little property and it will look lovely when it's done.
0:10:56 > 0:10:58I think you need to get that window triple-glazed!
0:10:58 > 0:11:03- Most definitely.- Cos it does get quieter throughout the rest of the house, doesn't it?
0:11:03 > 0:11:08Yes, it does. I think what we'll do is have all bespoke windows made up
0:11:08 > 0:11:12in keeping with the cottagey feel. We want to keep it as a cottage.
0:11:12 > 0:11:17We don't want to go away from like a retro style, sort of thing.
0:11:17 > 0:11:21I think everything's got to be done to make it look right, otherwise it'll be a mish-mash.
0:11:21 > 0:11:25So you are going to stay with the cottagey, character feel of the place.
0:11:25 > 0:11:27Yeah, we'll keep as much as we can of the original features.
0:11:27 > 0:11:31If we do change them, try and put back what was there originally.
0:11:31 > 0:11:33Keep it nice and old and characteristic.
0:11:33 > 0:11:35Now, what about the kitchen?
0:11:35 > 0:11:38It has to be made bigger, really.
0:11:38 > 0:11:41With the bathroom downstairs, we'll try and move that
0:11:41 > 0:11:42and that'll create a bigger kitchen.
0:11:42 > 0:11:45Exactly what I was thinking.
0:11:45 > 0:11:46Yes, I totally agree with you.
0:11:46 > 0:11:49Move that into that room there,
0:11:49 > 0:11:51to have a really nice big kitchen,
0:11:51 > 0:11:54shift that bathroom upstairs in the small room
0:11:54 > 0:11:56and then that leaves you with two bedrooms.
0:11:56 > 0:12:01We knew the bedroom could be an important thing from the financial side,
0:12:01 > 0:12:05but I reckon it's a good thing to do because the market we're trying to target,
0:12:05 > 0:12:09a two-bed would be better, with the bathroom upstairs and a bigger kitchen
0:12:09 > 0:12:11than having a three-bed.
0:12:11 > 0:12:14What sort of budget have you got for a property like this?
0:12:14 > 0:12:20- We reckon around 40,000 should be a realistic budget.- Yeah, that really is a healthy budget.
0:12:20 > 0:12:22How long do you think it'll take to complete?
0:12:22 > 0:12:27We reckon between four and six months. With our normal work, most of the weekdays are taken up
0:12:27 > 0:12:28so it'll be a weekend project.
0:12:28 > 0:12:31So no real rush. Four to six months.
0:12:31 > 0:12:35So on a Friday night, five o'clock, you'll be in your car driving down to Kent,
0:12:35 > 0:12:40staying all weekend, driving back up to Hertfordshire Sunday night/Monday morning?
0:12:40 > 0:12:43We have sort of done one or two of these before.
0:12:43 > 0:12:48We done one in Ramsgate, a little bit further away.
0:12:48 > 0:12:51So what we done was, once we got one bedroom tidy
0:12:51 > 0:12:54and the bathroom with a bit of hot water, then we stayed overnight.
0:12:54 > 0:12:58It makes it a bit better. You can work a bit later, get an early start.
0:12:58 > 0:13:02And sometimes it's pleasurable. Treat yourself to a meal and a drink afterwards,
0:13:02 > 0:13:04it's a lovely Friday or Saturday night.
0:13:04 > 0:13:07- You can have fun as a family. - That's what it's all about.
0:13:07 > 0:13:11Guys, congratulations. I can't wait to see what you do.
0:13:11 > 0:13:14I think knocking these two rooms together is going to set this place apart.
0:13:14 > 0:13:17- Andrew, Derek, thank you. - Thanks very much. Thank you.
0:13:19 > 0:13:24Well, this house has lucked out with Derek and Andrew taking on the renovations.
0:13:24 > 0:13:26They really do seem to care about this place.
0:13:26 > 0:13:31I'm hoping when we return there'll be a massive transformation.
0:13:31 > 0:13:33Join us later in the show to find out.
0:13:44 > 0:13:47This is Maryport, on the Cumbrian coast.
0:13:47 > 0:13:51Amazingly, much of this largely 18th-century town
0:13:51 > 0:13:57was built on the site of one of the most northerly Roman ports in their empire.
0:13:57 > 0:14:00But it's not Romans I'm here to see today.
0:14:00 > 0:14:04Because this is Domus sub Pango!
0:14:06 > 0:14:08That's Homes under the Hammer, in Latin!
0:14:12 > 0:14:18I haven't come here today to conquer, but to look at an auction property.
0:14:18 > 0:14:21It had a guide price of 45 to 55,000 quid,
0:14:21 > 0:14:23and it's a whopper!
0:14:23 > 0:14:28This, on this largely local authority housing estate.
0:14:28 > 0:14:33Two semi-detached properties that were joined together to create this
0:14:33 > 0:14:35which has been previously used as a care home.
0:14:35 > 0:14:39Now, it's all shuttered up. I wonder if it's going to be hiding a multitude of sins?
0:14:39 > 0:14:44This care home hasn't been in use since 2008,
0:14:44 > 0:14:47hence its rather dilapidated appearance,
0:14:47 > 0:14:50suggesting there might be rather a lot of work ahead.
0:14:50 > 0:14:52Still, Rome wasn't built in a day.
0:14:53 > 0:14:57It's going to be a case of piecing together what we've got
0:14:57 > 0:14:58and what it used to be like.
0:14:58 > 0:15:01Through the door into this large entrance foyer.
0:15:01 > 0:15:05Then stairs up to all the rooms upstairs.
0:15:05 > 0:15:08You've got two choices, you can either go that way or this way.
0:15:08 > 0:15:13And my guess is that the house when it was two semis
0:15:13 > 0:15:15was divided at some point here.
0:15:15 > 0:15:17So let's see what we've got.
0:15:20 > 0:15:24Coming down this way, you really get a sense of what this place was like.
0:15:24 > 0:15:28Lots of rooms, and it all feels fairly substantial.
0:15:28 > 0:15:31But the big question is, what are you going to do with it?
0:15:31 > 0:15:35One option is to keep it pretty much as it is.
0:15:35 > 0:15:37That's probably unlikely.
0:15:37 > 0:15:41The money-making thing, I think, is to think about reconverting it back
0:15:41 > 0:15:44into those two semi-detached properties.
0:15:44 > 0:15:46They're obviously a pretty big size.
0:15:46 > 0:15:49Look at the size of this kitchen. It obviously needs completely re-doing,
0:15:49 > 0:15:52but the basic structure is here.
0:15:52 > 0:15:55So a three-bedroomed and a four-bedroomed semi-detached.
0:15:55 > 0:15:57You'd have to maybe put some stairs in,
0:15:57 > 0:16:00and obviously kitchens and bathrooms.
0:16:00 > 0:16:03But keep your costs down and buy this at the right price,
0:16:03 > 0:16:06and I think there's money to be made on this one.
0:16:06 > 0:16:10The corridor runs the length of the ground floor and the rooms all run off it.
0:16:10 > 0:16:12There's also a reception room down here,
0:16:12 > 0:16:14which I think has been used as a sitting room.
0:16:24 > 0:16:26And if you turn the other way from the staircase,
0:16:26 > 0:16:28there are more rooms.
0:16:28 > 0:16:34On this side, you've got a loo, a really big loo and bathroom there.
0:16:34 > 0:16:39And then through to this side end where there's a garage.
0:16:39 > 0:16:44I'm a bit sort of intrigued by, if you like, the lack of damp-proofing,
0:16:44 > 0:16:47and the fact you've only got a single skin wall here,
0:16:47 > 0:16:49so you'd have to mess around with this to make it habitable.
0:16:49 > 0:16:53But with a bit of effort, lots of potential.
0:16:53 > 0:16:56And one thing you certainly cannot criticise this place for
0:16:56 > 0:16:58is lack of space.
0:16:58 > 0:17:02From the road you can see that the upstairs of this auction lot
0:17:02 > 0:17:06that had a guide price of 45 to 55,000 isn't as wide.
0:17:06 > 0:17:09As with the downstairs, there's a long corridor
0:17:09 > 0:17:12but the room at the far end above the ground-floor bathroom
0:17:12 > 0:17:16is more like an attic conversion and has very limited head-room.
0:17:20 > 0:17:22But the problems don't stop there.
0:17:22 > 0:17:26The six bedrooms, office and two bathrooms have all been vandalised
0:17:26 > 0:17:28and the pipework has, well, disappeared.
0:17:28 > 0:17:32Whoever bought this is going to have to factor in a complete re-plumb.
0:17:32 > 0:17:36Also, a safety check of the electrics is a must.
0:17:38 > 0:17:42At the back of the property, there's a lot of work required as well.
0:17:42 > 0:17:44I'm beginning to think that fixing this place up
0:17:44 > 0:17:46could prove to be rather expensive.
0:17:47 > 0:17:50We invited the auctioneer who sold the property to come and tell us
0:17:50 > 0:17:53what he'd advise for this former care home.
0:17:53 > 0:17:57Prior to being a care home, it was two semi-detached properties.
0:17:57 > 0:18:01And it could be converted back into either of those.
0:18:01 > 0:18:04I suspect converting it back to two separate homes
0:18:04 > 0:18:06would prove more expensive.
0:18:06 > 0:18:09But how much could a semi achieve on the re-sale market?
0:18:11 > 0:18:15If this property was renovated back into two semi-detached properties,
0:18:15 > 0:18:17both slightly different sizes,
0:18:17 > 0:18:20so perhaps one would be a three-bed semi-detached house.
0:18:20 > 0:18:23That would achieve in the region of £80,000.
0:18:23 > 0:18:29A four-bedroomed semi-detached property I think probably closer to £90,000.
0:18:29 > 0:18:32What sort of rent could this generate if let?
0:18:33 > 0:18:38I think the three-bedroom would achieve in the region of £400 per calendar month,
0:18:38 > 0:18:43and the four-bedroomed house around £450 per calendar month.
0:18:43 > 0:18:45But do beware!
0:18:45 > 0:18:48It's a massive property.
0:18:48 > 0:18:51Along with a massive property comes a massive project.
0:18:51 > 0:18:55It really depends on what the buyer's going to do with it.
0:18:55 > 0:18:59Lots of work to be done, but I think some good profits to be made here.
0:18:59 > 0:19:02Let's see who went for it when it went under the hammer.
0:19:02 > 0:19:04This is lot number six in the catalogue.
0:19:04 > 0:19:06Previously registered as a care home.
0:19:06 > 0:19:11This substantial detached property is in need of full renovation throughout.
0:19:11 > 0:19:13Anybody in at 50?
0:19:14 > 0:19:16At 45? At 45 here. We're away.
0:19:16 > 0:19:18I'll take it in ones. Nice and easy.
0:19:18 > 0:19:20£45,000 I'm bid.
0:19:20 > 0:19:2246 in the aisle.
0:19:22 > 0:19:2447. 48. 49.
0:19:24 > 0:19:26And 50.
0:19:26 > 0:19:2951. 52? Shake of the head at 52.
0:19:29 > 0:19:32At £51,000. Are we all done?
0:19:32 > 0:19:34Back in at 52.
0:19:34 > 0:19:3553. 54.
0:19:35 > 0:19:39Is that a bid or a "go away"?
0:19:40 > 0:19:43At £53,000, then.
0:19:43 > 0:19:44New bidder. 54.
0:19:44 > 0:19:4755. 56. Shake of the head.
0:19:47 > 0:19:49With you at 55.
0:19:49 > 0:19:51Against you. Against you.
0:19:51 > 0:19:54First time. 55, second time.
0:19:54 > 0:19:57£55,000, then. Third and final time.
0:19:57 > 0:19:59All done. All out. You, sir.
0:19:59 > 0:20:00Well done.
0:20:01 > 0:20:05That successful bidder who paid £55,000 was Alan.
0:20:05 > 0:20:09Not only does he have a portfolio of properties which he lets,
0:20:09 > 0:20:12but he also owns a business in the care sector.
0:20:12 > 0:20:16So I was curious to find out what his plans were for this place.
0:20:20 > 0:20:24I met up with him and his manager Amy to find out more.
0:20:25 > 0:20:27Alan, Amy, great to meet you both.
0:20:27 > 0:20:30- Congratulations. - Thank you very much.
0:20:31 > 0:20:34Tell me why you wanted to buy this place.
0:20:34 > 0:20:40Well, we run a care company and we're actually looking to expand
0:20:40 > 0:20:44- and this property came up. It was an ex care home.- Yes.
0:20:44 > 0:20:48To be quite honest, it was an opportunity not to be missed.
0:20:48 > 0:20:51So your business is actually care homes?
0:20:51 > 0:20:55No, we provide residential community-based support
0:20:55 > 0:20:57for people with learning disabilities.
0:20:57 > 0:21:01And within this area, there isn't a lot of residential options for people with learning disabilities.
0:21:01 > 0:21:05We're looking to expand into that area to offer a new service to that sector.
0:21:05 > 0:21:09Wow! This is almost purpose-built for you.
0:21:09 > 0:21:13It needs a lot of work, but in terms of what its end use will be.
0:21:13 > 0:21:15It's going to be slightly different.
0:21:15 > 0:21:19We're actually going to make this into four self-contained units
0:21:19 > 0:21:22for adults with LD.
0:21:22 > 0:21:24- That's learning difficulties? - Learning difficulties, yes.
0:21:24 > 0:21:27And it'll have 24/7 staff.
0:21:27 > 0:21:31Tell me how you two work together. What are your roles?
0:21:31 > 0:21:33I retired over a year ago
0:21:33 > 0:21:40and I've provided housing for adults with LD for about ten, 12 years, now.
0:21:40 > 0:21:45And I looked at providing care a few years ago,
0:21:45 > 0:21:47but with us working full time,
0:21:47 > 0:21:49I didn't have the time to do it.
0:21:49 > 0:21:55So when I retired, we started this off, Amy came on board.
0:21:55 > 0:21:58It took us over two years, even with Amy's help.
0:21:58 > 0:22:01And we've got the business going now
0:22:01 > 0:22:03and we're going from strength to strength.
0:22:03 > 0:22:06Amy's the registered manager for the organisation.
0:22:06 > 0:22:10She has to make sure that whatever housing they provide
0:22:10 > 0:22:13meets the strict regulations of the Care Quality Commission.
0:22:13 > 0:22:17The intention is to provide enhanced care.
0:22:17 > 0:22:21'Normally, you have residential properties with residential beds.'
0:22:21 > 0:22:24So that's an independent bedroom, maybe an independent bathroom,
0:22:24 > 0:22:26but with communal living areas.
0:22:26 > 0:22:29What we're looking to establish here is four self-contained flats
0:22:29 > 0:22:32where people can live completely independently
0:22:32 > 0:22:34and create the illusion of full independence,
0:22:34 > 0:22:37whilst risk-managing all the day-to-day living skills.
0:22:37 > 0:22:40As well as the independent living quarters,
0:22:40 > 0:22:43the plan is to redevelop some shared areas
0:22:43 > 0:22:45where they can work together to learn skills from each other.
0:22:45 > 0:22:48After around two years with this support,
0:22:48 > 0:22:52the residents will be ready to move into fully independent living.
0:22:53 > 0:22:57How, then are you going to convert what we've got here now into what you'd like it to be?
0:22:57 > 0:23:01Basically, there will be four self-contained units.
0:23:01 > 0:23:06Where we're standing now is going to be a communal living area.
0:23:06 > 0:23:08There will be walls to take out, walls to put up.
0:23:08 > 0:23:12At the end there, we're going to make that into a living room.
0:23:12 > 0:23:14The little garage area.
0:23:14 > 0:23:17Obviously there'll be building regs as well to go with that.
0:23:26 > 0:23:28'Alan intends to project manage.
0:23:28 > 0:23:31'He and his son Christopher will do as much as they can,
0:23:31 > 0:23:35'bringing in electricians, plumbers and plasterers as required.
0:23:35 > 0:23:37'Alan's brother is a roofer,
0:23:37 > 0:23:39'so that will be very handy.'
0:23:39 > 0:23:42Do you know roughly how much you've got to set aside for doing the work?
0:23:42 > 0:23:46We've got a budget of 45k
0:23:46 > 0:23:50but I'll be very upset if we get anywhere near that.
0:23:50 > 0:23:53I can't see us reaching that area, so to speak.
0:23:53 > 0:23:55And a timescale?
0:23:55 > 0:23:58Approximately three months. We should be there in three months.
0:23:58 > 0:24:01Listen, congratulations. I'm truly delighted.
0:24:01 > 0:24:05- I can't wait to see how you get on. A worthwhile venture. Good luck to you both.- Thank you.
0:24:05 > 0:24:09Well, it's not often that that happens.
0:24:09 > 0:24:12What a fantastic find for Alan and Amy.
0:24:12 > 0:24:16A property that's almost purpose-built for their requirements.
0:24:16 > 0:24:21A bit of work to be done, but with their enthusiasm and determination,
0:24:21 > 0:24:24I'm sure it'll be a successful project.
0:24:24 > 0:24:27You can find out how it goes later in the show.
0:24:28 > 0:24:33Still to come: in London, there's bags of potential in this flat.
0:24:33 > 0:24:37You could theoretically enhance the property by extending upwards.
0:24:39 > 0:24:41Wait till you see the fantastic work
0:24:41 > 0:24:44Alan and Amy have done at this care home in Cumbria.
0:24:44 > 0:24:47But did they do it within their budget?
0:24:49 > 0:24:52And back in Kent, it's looking fabulous!
0:24:52 > 0:24:54But the costs spiralled.
0:24:54 > 0:24:58We think that what we spend we'll get back, and more, so it's worth it.
0:25:01 > 0:25:05One of the appeals of Sittingbourne in Kent is its location,
0:25:05 > 0:25:09with good transport links to Dover, Maidstone, Canterbury and London.
0:25:10 > 0:25:16However, it's less appealing if you happen to be on one of these main road links.
0:25:16 > 0:25:19That was the case with this three-bed detached property,
0:25:19 > 0:25:22that went to auction, in the nearby village of Bobbin.
0:25:29 > 0:25:32Mind you, that wasn't the only negative about this cottage.
0:25:32 > 0:25:36There were signs of damp, possibly from the leaky water tank upstairs,
0:25:36 > 0:25:40a rather small kitchen and a downstairs bathroom.
0:25:40 > 0:25:43It was generally in quite a sorry state.
0:25:43 > 0:25:46But there were a fair number of character features
0:25:46 > 0:25:51and an opportunity to improve considerably what was already here.
0:25:51 > 0:25:55Hertfordshire-based Derek and his wife, Karen, and son Andrew
0:25:55 > 0:25:59had bought it at auction for 138,000
0:25:59 > 0:26:02as a family project to do up and sell on.
0:26:04 > 0:26:07It's on a main road. Did that not put you off, first and foremost?
0:26:07 > 0:26:10It did a little bit, but it's such a quirky property,
0:26:10 > 0:26:13with double glazing to quieten the noise down a bit,
0:26:13 > 0:26:15and it is detached and on its own,
0:26:15 > 0:26:17I think someone's going to fall in love with it.
0:26:17 > 0:26:19Now, what about the kitchen?
0:26:19 > 0:26:22It's too small and it has to be made bigger, really.
0:26:22 > 0:26:25So with the bathroom downstairs, we'll try and move that
0:26:25 > 0:26:26to create a bigger kitchen.
0:26:26 > 0:26:28But that leaves you with two bedrooms.
0:26:28 > 0:26:34It's a good thing, because the market we want to target, a two-bed would be better
0:26:34 > 0:26:37with a bathroom upstairs and a bigger kitchen, than possibly the three-bed.
0:26:38 > 0:26:40Both Derek and son Andrew are plasterers.
0:26:40 > 0:26:44They'd hoped that with help from Karen and contacts they have in the trade,
0:26:44 > 0:26:47they could get the renovation done in four to six months
0:26:47 > 0:26:49on a budget of 40,000.
0:26:50 > 0:26:53Now, just four months later,
0:26:53 > 0:26:55we're back with Andrew and his mum Karen
0:26:55 > 0:26:57to see how they got on.
0:27:04 > 0:27:06Wow! That's more like it.
0:27:06 > 0:27:09It certainly has kerb appeal now.
0:27:12 > 0:27:14Not only is the cottage looking splendid,
0:27:14 > 0:27:18but the garden and the surrounds are so much more welcoming.
0:27:21 > 0:27:23And it doesn't stop there.
0:27:23 > 0:27:25Let's have a look inside.
0:27:28 > 0:27:31It really is simply fantastic.
0:27:39 > 0:27:43The basic changes we've made have been a complete refurb throughout.
0:27:43 > 0:27:45Took everything back to the brick.
0:27:45 > 0:27:50Completely re-plastered, electrics, plumbing, damp-proofed everywhere,
0:27:50 > 0:27:52damp-injected everywhere.
0:27:52 > 0:27:53A complete refurb.
0:27:55 > 0:27:58Yes, a complete refurb - and then some!
0:28:03 > 0:28:05I just love it!
0:28:07 > 0:28:08Changed the layout quite a bit.
0:28:08 > 0:28:11We had the bathroom and kitchen in one before,
0:28:11 > 0:28:14so we've knocked it through and made it a kitchen downstairs
0:28:14 > 0:28:17and moved the bathroom upstairs into the third bedroom.
0:28:20 > 0:28:23So they may have lost a bedroom upstairs,
0:28:23 > 0:28:26but boy, have they gained a bathroom!
0:28:29 > 0:28:32The two remaining bedrooms are rather impressive, too.
0:28:38 > 0:28:40And with double-glazing throughout,
0:28:40 > 0:28:42just listen... Shh!
0:28:42 > 0:28:46Hmm, that certainly makes a difference.
0:28:47 > 0:28:50And they've also come up with some added extras.
0:28:50 > 0:28:53Removing the immersion heating and airing cupboard,
0:28:53 > 0:28:56they've created room for an upstairs shower room.
0:28:58 > 0:29:01Downstairs, the old utility space has been turned into a study
0:29:01 > 0:29:04or potentially a small single bedroom.
0:29:04 > 0:29:07This is an amazing transformation.
0:29:07 > 0:29:09It certainly looks like they've worked very hard.
0:29:10 > 0:29:14I've been hands on throughout. I've done the majority of stuff inside.
0:29:14 > 0:29:17Ripping out, changing the layout, the plastering,
0:29:17 > 0:29:21and my dad's done similar stuff to me, and moved on to the garden.
0:29:21 > 0:29:24Me and Mum have done the finishing touches like the painting
0:29:24 > 0:29:26et cetera, that sort of stuff. And the woodwork.
0:29:26 > 0:29:28It's been really good working as a family.
0:29:28 > 0:29:32It's been hard work, and we had to bring our dog with us every weekend.
0:29:32 > 0:29:37He's given us a lot of fun, running of with paint rollers and running round the garden.
0:29:37 > 0:29:39All full of paint!
0:29:39 > 0:29:42But it's been really good. We've enjoyed it.
0:29:43 > 0:29:48What's even more impressive is that not only have they done this transformation in four months,
0:29:48 > 0:29:51but the majority of the work was done only at weekends.
0:29:51 > 0:29:56Wherever possible, they tried to enhance and sympathetically embellish
0:29:56 > 0:29:58what was already here.
0:29:58 > 0:30:00We've made the most of the character of the cottage.
0:30:00 > 0:30:06Like the fireplaces have been made by Del using the bricks from the old kitchen wall.
0:30:06 > 0:30:10And we've added a lot of oak, which we've reclaimed.
0:30:10 > 0:30:12The handrail up the stairs
0:30:12 > 0:30:16and floors in the bedroom, they're like old pine.
0:30:16 > 0:30:19This is a very comprehensive refurbishment
0:30:19 > 0:30:22and the cottage is now really looking the business.
0:30:22 > 0:30:24But at what cost?
0:30:27 > 0:30:28Our budget started at £40,000
0:30:28 > 0:30:32but after the first few weeks, we realised it was probably a bit unrealistic.
0:30:32 > 0:30:34Obviously an older property, we learnt a bit.
0:30:34 > 0:30:37We decided to spend a bit more and it probably doubled by the end.
0:30:37 > 0:30:4275,000. But we think what we spent we'll get back and more so it was worth it.
0:30:42 > 0:30:46I was always concerned that this noisy location would put buyers off.
0:30:46 > 0:30:48So now, I really am worried.
0:30:48 > 0:30:51Given that the estate agent who saw the property previously
0:30:51 > 0:30:57valued it at around 215 to 220,000 once done up,
0:30:57 > 0:31:00then, ooh, well, this could be tight.
0:31:01 > 0:31:04I think the finish is perfect for the sort of market you're going for.
0:31:04 > 0:31:06Probably a professional couple.
0:31:06 > 0:31:09It won't appeal much to families because of the location.
0:31:09 > 0:31:11The main road will put a few people off,
0:31:11 > 0:31:15but just by looking at the beauty of the property and standard of finish,
0:31:15 > 0:31:17I think that will outweigh the road noise.
0:31:17 > 0:31:20It's really nice the way they've managed to keep the original features.
0:31:20 > 0:31:25And then blend it in nicely with the modern things, bathroom and kitchen. It's fantastic.
0:31:25 > 0:31:29Derek, Karen and Andrew decided to increase their budget
0:31:29 > 0:31:31to give their cottage the wow factor.
0:31:31 > 0:31:37But will that pay off, as they've now invested a total of 213,000.
0:31:37 > 0:31:42I think this property would sell for between 275 and £295,000.
0:31:42 > 0:31:47I think the achievable price for this property would be around the £250,000 mark.
0:31:47 > 0:31:50Values seem pretty reasonable. A minimum of 250.
0:31:50 > 0:31:53After what we've done to the place, I want to see 250.
0:31:53 > 0:31:57Obviously 275, 280 would be pretty reasonable.
0:31:58 > 0:32:01Well, that could potentially be a pre-tax profit
0:32:01 > 0:32:04of between 37 and 82,000.
0:32:04 > 0:32:11And the estate agents estimated a rental value of between 800 and £900 per calendar month,
0:32:11 > 0:32:15meaning a yield of around five per cent could be possible.
0:32:15 > 0:32:19So overall, this has been a successful project.
0:32:19 > 0:32:21What's next for them?
0:32:22 > 0:32:25A nice little break, first, then straight into another one.
0:32:25 > 0:32:27I'd look forward to doing another one.
0:32:31 > 0:32:35Today, I'm in the south-east London suburb of Lewisham.
0:32:36 > 0:32:38During the Victorian era,
0:32:38 > 0:32:42Lewisham became very popular with city workers
0:32:42 > 0:32:46who wanted to escape to a more rural and peaceful place,
0:32:46 > 0:32:48but still with easy access to the city.
0:32:48 > 0:32:51In recent times, it has been slightly overlooked
0:32:51 > 0:32:55but that access is absolutely key to its rejuvenation.
0:32:55 > 0:32:58Because we are literally just 15 minutes from London Bridge
0:32:58 > 0:33:00or Canary Wharf on the DLR.
0:33:04 > 0:33:07Off the busy high street, Lewisham is a little more peaceful
0:33:07 > 0:33:11with some lovely period properties and an attractive park.
0:33:14 > 0:33:17The property I'm here to see is at the end of this terrace.
0:33:17 > 0:33:20It's a first floor two-bedroomed flat,
0:33:20 > 0:33:23had a guide price of 135,000 quid. Let's take a look.
0:33:23 > 0:33:27The front garden belongs to the ground floor flat,
0:33:27 > 0:33:30but you do have a right of access across it.
0:33:30 > 0:33:34That's fortunate, as otherwise, it would be very hard to reach the front door!
0:33:34 > 0:33:37It's nice you've got that little communal area there,
0:33:37 > 0:33:40and then your own private door into the flat itself.
0:33:40 > 0:33:43As soon as you come in, a really nice feel about it.
0:33:43 > 0:33:47High ceilings and this big landing area, making it feel quite open.
0:33:47 > 0:33:50Kitchen and bathroom are that way.
0:33:50 > 0:33:52Your first bedroom there.
0:33:52 > 0:33:54And then down the little landing.
0:33:54 > 0:33:58Storage space with a little hot water thing.
0:33:58 > 0:34:02Second bedroom. It's small, but it is at least a second bedroom.
0:34:02 > 0:34:04Then through into your living room.
0:34:04 > 0:34:09Again, a nice feel to this. Bay windows, high ceilings.
0:34:09 > 0:34:11I imagine there's quite nice floorboards here.
0:34:11 > 0:34:15If you stripped them back, though, you'd have to consider the people downstairs,
0:34:15 > 0:34:18cos clickety-clack with high heels and stuff.
0:34:18 > 0:34:20Not nice for whoever's downstairs.
0:34:20 > 0:34:24Apart from that, it's got a really good feel to it.
0:34:33 > 0:34:37There are some odd scuffs and scrapes to be dealt with.
0:34:37 > 0:34:43The walls definitely need re-skimming and a freshen up decor-wise would be a good idea.
0:34:43 > 0:34:45But nothing radical.
0:34:45 > 0:34:47But there are layout problems back at the other end of the corridor.
0:34:49 > 0:34:52A bathroom next to the kitchen is far from ideal.
0:34:52 > 0:34:56I think there's definitely a re-jig needed to sort out this layout.
0:34:56 > 0:34:59The other question that's buzzing around in my head is,
0:34:59 > 0:35:03is there any way to add more value to this property?
0:35:06 > 0:35:09Now, one thing which is really important to consider
0:35:09 > 0:35:11whenever you're buying a flat
0:35:11 > 0:35:13is the situation regarding the lease.
0:35:13 > 0:35:17You want to be really sure what your lease entitles you to.
0:35:17 > 0:35:22The outside space, the inside space and, in this case, the space above the flat.
0:35:22 > 0:35:24We're in the upper flat here.
0:35:24 > 0:35:28Sometimes the leasehold in this flat wouldn't own the space in the loft.
0:35:28 > 0:35:30In this case, you do.
0:35:30 > 0:35:32You are responsible for its upkeep,
0:35:32 > 0:35:39but the good news is that you could theoretically enhance the property by extending upwards.
0:35:39 > 0:35:42You would have to get the approval of the freeholder to do it,
0:35:42 > 0:35:46but it could be a way to add good value to this flat.
0:35:46 > 0:35:49Creating a bedroom and bathroom upstairs
0:35:49 > 0:35:51would improve the flow downstairs.
0:35:51 > 0:35:56The downside of this lease is that it only has about 68 years left,
0:35:56 > 0:35:59so you'd need to think about the flat's mortgageability.
0:35:59 > 0:36:02The real bonus here is the outside space.
0:36:02 > 0:36:05It comes with a private part of the rear garden
0:36:05 > 0:36:08accessed from an exterior shared stairwell.
0:36:12 > 0:36:15We asked a local property expert to give us his opinion
0:36:15 > 0:36:19on this two-bed flat guided at 135,000.
0:36:19 > 0:36:22What needs to be done to this property is purely cosmetic.
0:36:22 > 0:36:25Come in, strip the walls, redecorate,
0:36:25 > 0:36:29new kitchen, new bathroom, Bob's your uncle.
0:36:29 > 0:36:31The only thing I would say to whoever buys it
0:36:31 > 0:36:34is to look at the electrics, cos they look possibly out of date.
0:36:36 > 0:36:39A very good tip. Extremely important.
0:36:39 > 0:36:42What does he reckon about extending into the loft?
0:36:44 > 0:36:49It looks like it's got quite a high spined ridge on the top of the loft,
0:36:49 > 0:36:51so it looks like you could convert up into the loft
0:36:51 > 0:36:55and the hallway is long enough to put in another set of stairs
0:36:55 > 0:36:57so it's quite exciting.
0:36:57 > 0:36:58Let's talk figures.
0:36:58 > 0:37:01One renovated, how much could it sell or let for?
0:37:03 > 0:37:05Once it's brought to a good standard,
0:37:05 > 0:37:08the sale value, I think you're looking at £250,000.
0:37:08 > 0:37:12That is limited only really because of the stamp duty in the area,
0:37:12 > 0:37:13which is happening everywhere.
0:37:13 > 0:37:15But you should get that sort of figure.
0:37:15 > 0:37:19I think you'd be looking rental-wise at about £1,100 per calendar month
0:37:19 > 0:37:20to £1,200 per calendar month.
0:37:20 > 0:37:24And will the estimates improve with that loft conversion?
0:37:25 > 0:37:29If you went into the loft and added a bedroom, turned it into a three bed,
0:37:29 > 0:37:32you should see a fairly good uplift in the property.
0:37:32 > 0:37:36In some areas, that's taken you all the way up to the 300,000 mark.
0:37:36 > 0:37:40So the person has to look at the cost of doing the actual conversion
0:37:40 > 0:37:42to the cost of what they'll get in the uplift.
0:37:45 > 0:37:51So, a nice Lewisham flat with the potential to extend upwards.
0:37:51 > 0:37:53A good price, good location.
0:37:53 > 0:37:56An interesting one to go for. Let's see who agreed when it went under the hammer.
0:37:59 > 0:38:0150,000, anyone?
0:38:03 > 0:38:04125?
0:38:04 > 0:38:06125.
0:38:06 > 0:38:08126. 127.
0:38:09 > 0:38:11128? 128.
0:38:11 > 0:38:12130.
0:38:12 > 0:38:14There were two keen bidders on this lot,
0:38:14 > 0:38:16so we rejoin a little later
0:38:16 > 0:38:18at 150,000.
0:38:19 > 0:38:20150. 151.
0:38:20 > 0:38:22151. 152.
0:38:22 > 0:38:24153?
0:38:25 > 0:38:29Come on, you've been there all along. You've been a good bidder. Don't leave empty-handed.
0:38:29 > 0:38:32153, sir. Against you.
0:38:33 > 0:38:35153. 154 against you.
0:38:35 > 0:38:36155?
0:38:37 > 0:38:40155 against you, madam.
0:38:40 > 0:38:42Yeah? Bidding at 155.
0:38:42 > 0:38:44156. 157?
0:38:45 > 0:38:47157. 158.
0:38:47 > 0:38:50159. Back of the room.
0:38:50 > 0:38:51160.
0:38:51 > 0:38:53At 160.
0:38:53 > 0:38:55161. 162. 163.
0:38:55 > 0:38:58163. 164.
0:38:58 > 0:39:00164. 165.
0:39:00 > 0:39:02165. 166. 167?
0:39:02 > 0:39:06167. 168. 169?
0:39:06 > 0:39:07169.
0:39:07 > 0:39:11170, sir. 170. 171.
0:39:11 > 0:39:13171. 172.
0:39:13 > 0:39:16173? 173. 174?
0:39:16 > 0:39:18174. 175?
0:39:19 > 0:39:20175. 176?
0:39:21 > 0:39:25Might be her limit. Never stop on those numbers.
0:39:25 > 0:39:28176, sir, sitting down? You've been a good bidder.
0:39:28 > 0:39:31176. 177.
0:39:31 > 0:39:34Against you standing up.
0:39:34 > 0:39:36It's with the gentleman sitting down.
0:39:37 > 0:39:39Can't let him have it on that!
0:39:39 > 0:39:43176 with the gentleman sitting down.
0:39:43 > 0:39:46176 for the first.
0:39:46 > 0:39:48176 for the second.
0:39:48 > 0:39:53176,000 for the third and final time.
0:39:55 > 0:39:57In the end, that successful bidder was Anish,
0:39:57 > 0:39:59who paid 176,000.
0:40:04 > 0:40:07He's been developing properties since he was just 21.
0:40:07 > 0:40:11Up until now, he's had a full-time job as a business development manager
0:40:11 > 0:40:13in a retail business.
0:40:13 > 0:40:15But recently that all changed.
0:40:15 > 0:40:17I met up with him at his new flat
0:40:17 > 0:40:19to find out more.
0:40:21 > 0:40:25- Anish, great to meet you.- Likewise. - Congratulations.- Thank you very much.
0:40:25 > 0:40:27Anish. That's a really interesting name.
0:40:27 > 0:40:32- It originates from India. It means hero in Indian.- Hero? Fantastic!
0:40:32 > 0:40:35So, have you turned into a bit of a property hero?
0:40:35 > 0:40:37I'd like to think so, yeah!
0:40:37 > 0:40:42I've recently given up the day job and going into property development full time.
0:40:42 > 0:40:45What kind of thing have you been working on?
0:40:45 > 0:40:47What projects have you done so far?
0:40:47 > 0:40:49Generally residential houses.
0:40:49 > 0:40:53Full refurbs and extensions as well.
0:40:53 > 0:40:55- So we've added value that way. - Who's "we"?
0:40:55 > 0:40:57- Me and my wife.- Right.- Satinda.
0:40:57 > 0:41:00- Oh, great. It's a partnership. - She's going to continue working
0:41:00 > 0:41:02so she's got the short straw!
0:41:02 > 0:41:05- What does she do? - She's a shop manager.
0:41:06 > 0:41:08Anish and Satinda plan to buy four properties a year
0:41:08 > 0:41:10and set up a property management company.
0:41:10 > 0:41:12You have to admire his courage.
0:41:12 > 0:41:15He's certainly living up to his name.
0:41:15 > 0:41:18# I can be your hero, baby
0:41:21 > 0:41:25# I can kiss away the pain... #
0:41:27 > 0:41:29So why this particular flat?
0:41:29 > 0:41:32We live quite a distance from it, so it was a little bit different.
0:41:32 > 0:41:34But I think it's got good commuter links into London.
0:41:34 > 0:41:36And it's a lovely road.
0:41:36 > 0:41:39Layout wise, are you happy with how it is?
0:41:39 > 0:41:42It's not ideal with the bathroom off the kitchen.
0:41:42 > 0:41:44That area is a bit of a disaster.
0:41:44 > 0:41:47It's a bit of a mish-mash. We've looked at alternative options,
0:41:47 > 0:41:50- but I think we would keep it as is. - What are you planning to do to it, then?
0:41:50 > 0:41:55It's not in bad condition, so I think we would look to skim the walls,
0:41:55 > 0:41:57put new carpets down,
0:41:57 > 0:42:01do some work to the kitchen. The kitchen units are quite good,
0:42:01 > 0:42:02so we'll see what we can salvage.
0:42:02 > 0:42:06And a complete new bathroom suite to give it a bit of a wow factor.
0:42:07 > 0:42:12Anish has allowed nine weeks and a budget of £9,000 for the work.
0:42:12 > 0:42:14And then hopes to rent it out.
0:42:14 > 0:42:17I'm just wondering, could he be missing a trick here?
0:42:18 > 0:42:23On the lease, we actually are responsible for the roof area and all the guttering.
0:42:23 > 0:42:26Anything above our flat we are completely responsible for.
0:42:26 > 0:42:29And therefore you own it, or, rather, you lease it.
0:42:29 > 0:42:31We lease that area. So we do actually have the right
0:42:31 > 0:42:33to go up into the loft.
0:42:33 > 0:42:36You'd have to get the approval of the freeholder to do any works like that.
0:42:36 > 0:42:40We would do. And we'd probably have to investigate with the council as well.
0:42:40 > 0:42:44So that could be an option. We will cost that model up.
0:42:44 > 0:42:47- Congratulations. Good luck.- Thanks. - Nice to meet you.- Brilliant.
0:42:47 > 0:42:50- Look forward to seeing how you get on.- Thanks very much. Cheers.
0:42:52 > 0:42:55So, Anish taking on a heroic challenge or not?
0:42:55 > 0:42:58No, I don't think there's too much to do with this place.
0:42:58 > 0:43:01Bit of sorting around of the internals.
0:43:01 > 0:43:05And that decision of whether or not you extend up into the attic.
0:43:05 > 0:43:08Will he do it? You can find out later in the show.
0:43:11 > 0:43:14Well, time and tide wait for no man, as they say,
0:43:14 > 0:43:18and in the property world, time usually means money.
0:43:18 > 0:43:22So let's see how time and money have been spent.
0:43:22 > 0:43:26Back now to the Cumbrian coastal town on Maryport,
0:43:26 > 0:43:30where Alan paid £55,000 for this former care home.
0:43:30 > 0:43:34He runs a company that provides residential care and support
0:43:34 > 0:43:37for adults with learning disabilities.
0:43:37 > 0:43:40Amy is his manager, who ensures the care they provide
0:43:40 > 0:43:43meets the Care Quality Commission's guidelines.
0:43:44 > 0:43:48In this area, there isn't a lot of options for people with learning disabilities
0:43:48 > 0:43:52and we're looking to expand into that area to offer a new service to that sector.
0:43:52 > 0:43:56'The plan was to create four flats to allow independent living
0:43:56 > 0:43:58'and a communal area for support.
0:43:58 > 0:44:02'However, the abandoned building was in a poor state
0:44:02 > 0:44:04'as it had been vandalised.'
0:44:04 > 0:44:07Do you know roughly how much you've got set aside for doing the work?
0:44:07 > 0:44:11We've got a budget of 45k.
0:44:11 > 0:44:15But I'll be very upset if we get anywhere near that!
0:44:15 > 0:44:18Was Alan upset about that budget?
0:44:18 > 0:44:20Two and a half months after we first met them,
0:44:20 > 0:44:22it's time to find out, because we're back.
0:44:24 > 0:44:27From outside, the newly-painted property is looking good.
0:44:33 > 0:44:36And it's almost ready to welcome its new residents.
0:44:42 > 0:44:46There are now two self-contained one-bedroomed flats on the ground floor.
0:44:49 > 0:44:51Plus an office and a communal area.
0:44:54 > 0:44:56And two more flats up on the first floor.
0:44:56 > 0:45:01All four of the flats have an open-plan kitchen/sitting room
0:45:01 > 0:45:05plus one bedroom and a bathroom each.
0:45:05 > 0:45:07We knew we wanted the four individual flats
0:45:07 > 0:45:10and the best way to do it plus a communal area.
0:45:10 > 0:45:13So obviously downstairs is bigger than upstairs,
0:45:13 > 0:45:16so that had to have the communal area.
0:45:16 > 0:45:18There was like five, six bedrooms up here.
0:45:18 > 0:45:20It already had some bathrooms.
0:45:20 > 0:45:23We've moved some walls a matter of a couple of foot
0:45:23 > 0:45:28to gain a bigger bathroom or a bigger kitchen.
0:45:28 > 0:45:30It fell into place well.
0:45:30 > 0:45:33Alan's skills are primarily the building side,
0:45:33 > 0:45:39whereas my skills are the registration and legislation regarding this type of building.
0:45:39 > 0:45:42Alan had to follow building regulations, of course,
0:45:42 > 0:45:46and he discovered that he had additional fire-boarding work to do.
0:45:46 > 0:45:52On the build side, the fire laws have changed a lot since it was a care home.
0:45:52 > 0:45:57The amount of fire-boarding we've had to do downstairs is unbelievable.
0:45:57 > 0:45:59It delayed the project a little,
0:45:59 > 0:46:02but the extra time it provides to escape in a fire
0:46:02 > 0:46:04more than compensates for that.
0:46:04 > 0:46:07It all has to be certified along with the gas,
0:46:07 > 0:46:10electricity and fire alarm installation.
0:46:10 > 0:46:14Many of the rooms have changed from their original use,
0:46:14 > 0:46:16and others have needed less work.
0:46:17 > 0:46:21The four self-contained flats contain independent living environments
0:46:21 > 0:46:25which is very important to help the residents learn to be self-sufficient.
0:46:26 > 0:46:29The communal areas are just as important
0:46:29 > 0:46:32because a lot of people who will be referred to our service
0:46:32 > 0:46:36are most likely to come from a home environment where they're well supported with their families.
0:46:36 > 0:46:40And having that communal space and communal kitchen area
0:46:40 > 0:46:44will enable them to still have that sort of family environment.
0:46:44 > 0:46:48They can learn how to do their general daily living skills, how to carry out the washing,
0:46:48 > 0:46:50how to do their cooking and cleaning.
0:46:50 > 0:46:54We've still the grounds to sort out.
0:46:54 > 0:46:59We're looking at getting the residents involved in that.
0:46:59 > 0:47:04- We want a greenhouse, garden, you know.- A veg patch.- A veg patch, aye.
0:47:05 > 0:47:09Alan was determined to stick to a maximum budget of 45,000
0:47:09 > 0:47:11and he's not quite finished yet.
0:47:11 > 0:47:13Is he on target?
0:47:14 > 0:47:17I done my figures this morning before you came
0:47:17 > 0:47:21and we're at £33,000.
0:47:21 > 0:47:27All I've got left to buy is all new skirting and architraves downstairs,
0:47:27 > 0:47:30there'll be joiners' bills for the fitting of it and that.
0:47:30 > 0:47:32We haven't paid the solicitor yet.
0:47:32 > 0:47:40So at the very most, I would think we're going to come in at 36 to 37. That'll be all.
0:47:40 > 0:47:43Alan paid £55,000 at auction,
0:47:43 > 0:47:46and with his projected maximum outlay of 37,000,
0:47:46 > 0:47:50that would take his total investment to £92,000.
0:47:51 > 0:47:55Once it's operational, the rent will include 24-hour support,
0:47:55 > 0:47:59all bills and food and skills training for the residents.
0:47:59 > 0:48:02But how much does such specialist care cost?
0:48:03 > 0:48:07At the moment, I'm going through new contracting,
0:48:07 > 0:48:10which we can't finalise until we have our Care Quality Commission registration.
0:48:10 > 0:48:14What I proposed to adult social care
0:48:14 > 0:48:17is that we'd be looking to let out the residential beds
0:48:17 > 0:48:22at around £750 to £850 per week per person.
0:48:23 > 0:48:28That equates to £3,000 to £3,400 per calendar month.
0:48:28 > 0:48:30So, based on the lower figure,
0:48:30 > 0:48:32if all four flats were let,
0:48:32 > 0:48:36that would produce an annual income of £144,000.
0:48:36 > 0:48:38That's not all profit, of course,
0:48:38 > 0:48:41as the running costs would have to be deducted from that total.
0:48:43 > 0:48:48Time to find out what two local property experts think of this renovation so far.
0:48:49 > 0:48:52I think the proportions of the property have been well considered.
0:48:52 > 0:48:54They've divided it nice and equally
0:48:54 > 0:48:56between the four separate flats
0:48:56 > 0:48:58and given some good communal space.
0:48:58 > 0:49:01There's a lot of work to still continue.
0:49:01 > 0:49:05But what has been done so far has been done to a good standard.
0:49:05 > 0:49:10I think it's a great location. This end of town has got the elevated position
0:49:10 > 0:49:13so they'll get some fantastic sea views
0:49:13 > 0:49:15particularly on a day like today.
0:49:15 > 0:49:17There isn't enough places like this.
0:49:17 > 0:49:21It's an advantage for people with learning disabilities
0:49:21 > 0:49:26to be able to lead an independent life but in a safe environment.
0:49:26 > 0:49:29It's great that the property's nearing completion
0:49:29 > 0:49:32and will hopefully get the necessary certification
0:49:32 > 0:49:35so that it can welcome its new residents soon.
0:49:35 > 0:49:38But what value might the individual flats have
0:49:38 > 0:49:40if they were to be returned to the open market?
0:49:42 > 0:49:44The difficulties in valuing this property
0:49:44 > 0:49:47because it's been converted for a specific use
0:49:47 > 0:49:51is that on the open market the valuation I would give it
0:49:51 > 0:49:55probably isn't going to be relevant for its specific use.
0:49:55 > 0:49:59However, looking at comparable properties in the area of one-bedroomed flats,
0:49:59 > 0:50:01I would say probably 40 to £50,000 each.
0:50:01 > 0:50:08I would value the two ground floor flats and one of the first floor flats at £35,000 each.
0:50:08 > 0:50:12However, the fourth flat is a lot bigger, dual aspect,
0:50:12 > 0:50:16and I would put that on the market at £40,000.
0:50:16 > 0:50:19Well, if all four flats were sold for around that valuation range,
0:50:19 > 0:50:21that would produce a gross profit
0:50:21 > 0:50:25of between 53 and £78,000 before tax and expenses.
0:50:28 > 0:50:32It's a good contingency because if we - I'm not saying that we will -
0:50:32 > 0:50:35but there's never a guarantee, if we don't get registration
0:50:35 > 0:50:38then it's an opportunity to recoup the money that we put in
0:50:38 > 0:50:42and use that to invest in another opportunity if needs be.
0:50:42 > 0:50:45Of course, this project is a business
0:50:45 > 0:50:49and Alan is determined the flats won't be going on the open market any time soon.
0:50:52 > 0:50:54There's a big need for it. We know that.
0:50:54 > 0:51:01You know. The selling opportunity and rental doesn't come into it, really.
0:51:06 > 0:51:09Let's return now to Lewisham in south London,
0:51:09 > 0:51:13where I viewed a top floor two-bedroomed apartment
0:51:13 > 0:51:14in this end terrace,
0:51:14 > 0:51:18which had a guide price of £135,000.
0:51:19 > 0:51:22It was a tad tired and tatty,
0:51:22 > 0:51:24but all in all, it wasn't in bad nick.
0:51:25 > 0:51:28Anish agreed with my impressions of the property
0:51:28 > 0:51:32as he paid £176,000 for it at auction.
0:51:32 > 0:51:36He'd been dabbling in development for ten years
0:51:36 > 0:51:39and had even ditched his day job in business management
0:51:39 > 0:51:43to concentrate on building up his property portfolio.
0:51:43 > 0:51:47The property needed a renovation, but he also had the opportunity
0:51:47 > 0:51:49to extend up into the roof.
0:51:51 > 0:51:55You'd have to get the approval of the freeholder to do any works like that.
0:51:55 > 0:51:58We would do. And probably have to investigate with the council as well.
0:51:58 > 0:52:02So we'd look at that. That could be an option. We will cost that model up.
0:52:04 > 0:52:06So, would this be a tale of heroic triumph
0:52:06 > 0:52:08or a tragedy of noble failure?
0:52:11 > 0:52:13One month later, we're back.
0:52:29 > 0:52:33So, how has our intrepid hero found his first foray
0:52:33 > 0:52:36into being a full-time developer?
0:52:37 > 0:52:42This was my first professional property in terms of being off work.
0:52:42 > 0:52:44It's been much easier to manage being off work
0:52:44 > 0:52:47and being here on site to answer any kind of queries,
0:52:47 > 0:52:49so from that side it's been very successful.
0:52:49 > 0:52:51And hopefully I'll have many more to come.
0:52:56 > 0:52:59Anish had been planning on putting this property up for rent.
0:52:59 > 0:53:04To keep costs to a minimum, he hoped to salvage as much as he could
0:53:06 > 0:53:09We've made good the wallpaper that was here
0:53:09 > 0:53:11and we've covered any kind of seams.
0:53:11 > 0:53:13Given it a good double coat of paint.
0:53:13 > 0:53:16We've kept the existing kitchen units as is,
0:53:16 > 0:53:18and we've replaced the worktop with a brand-new worktop.
0:53:18 > 0:53:21We've got rid of the old white cooker
0:53:21 > 0:53:26and replaced it with a built-in electric oven with a gas hob on top.
0:53:26 > 0:53:30We've also put in a combi boiler, and kept that in its existing position.
0:53:32 > 0:53:36On top of that, we've also put in a brand-new sink, just to finish off the apartment.
0:53:36 > 0:53:39We've kept the existing tiles as well.
0:53:39 > 0:53:42Just given it a good freshen-up look.
0:53:44 > 0:53:47The flat certainly has a clean and fresh feel.
0:53:47 > 0:53:51The new carpets and floorings throughout complement the neutral colour scheme.
0:53:51 > 0:53:53With a little splash of colour in the kitchen.
0:53:55 > 0:53:57And the toilet.
0:54:00 > 0:54:03Anish had planned on stripping the woodchip and wallpaper,
0:54:03 > 0:54:06plastering the walls and removing the Artex.
0:54:06 > 0:54:11However, this labour-intensive task will have slowed down renovation,
0:54:11 > 0:54:15and increased his spend while, according to local estate agents,
0:54:15 > 0:54:17not adding to the rental value of the property.
0:54:19 > 0:54:22So Anish's tradesmen just repaired the wallpaper where necessary
0:54:22 > 0:54:26which I'm sure helped him stay within his £9,000 budget.
0:54:28 > 0:54:30We've ended up spending 6,100.
0:54:30 > 0:54:32A large part of that reduction
0:54:32 > 0:54:36was based on not having to remove the Artex and re-plaster throughout.
0:54:36 > 0:54:37So we made some savings there.
0:54:37 > 0:54:43And the rest of the money, the 6,000, was all budgeted for. So we were just about bang on.
0:54:43 > 0:54:50Adding that £6,100 spend to Anish's purchase price of 176,000
0:54:50 > 0:54:55gives him a total outlay of just over £182,000.
0:54:56 > 0:55:00Anish has kept control of his budget and his schedule,
0:55:00 > 0:55:03with the work completed in only three weeks.
0:55:03 > 0:55:07One area still under consideration, though, is the attic.
0:55:09 > 0:55:11We did look at the loft conversion.
0:55:11 > 0:55:18It was something that we wanted to do but with the level of spend, we scaled back.
0:55:18 > 0:55:21We decided not to put the extra investment into the loft conversion.
0:55:21 > 0:55:23We will look at that at a later date,
0:55:23 > 0:55:27and probably something we will do when we look to sell the apartment.
0:55:27 > 0:55:30But for now, this flat is for renting.
0:55:30 > 0:55:34And the good news is that Anish has already found a tenant.
0:55:35 > 0:55:39We've got a couple moving in next week, so that's good.
0:55:39 > 0:55:41Happy with that.
0:55:41 > 0:55:43We've decided to rent it for a couple of years
0:55:43 > 0:55:46and let the market pick up within the area.
0:55:46 > 0:55:50The Greenwich area and Lewisham areas are on the up at the moment
0:55:50 > 0:55:53so we thought we'd rent it out for a couple of years
0:55:53 > 0:55:56and see what the market's doing in two or three years' time.
0:55:57 > 0:55:59Sounds like a good plan.
0:55:59 > 0:56:02Anish has been very business-like about getting this property turned around
0:56:02 > 0:56:04with the minimum of fuss and cost.
0:56:04 > 0:56:07What do two local property experts make of the end result?
0:56:07 > 0:56:10'The standard of finish is very basic.'
0:56:10 > 0:56:12But good for the rental market.
0:56:12 > 0:56:15If you went too high, you might not get the return back.
0:56:15 > 0:56:17And the same as for sales.
0:56:17 > 0:56:20I think it's a nice, large two-bedroomed property.
0:56:20 > 0:56:23Light and airy. I think the work's been done quite well.
0:56:23 > 0:56:27Anish's plan is to hang on to the flat and sell it later.
0:56:27 > 0:56:29If he were to sell it just now,
0:56:29 > 0:56:33how would his £182,000 investment fare?
0:56:34 > 0:56:40If we were to sell this property, we should achieve round about £240,000
0:56:40 > 0:56:42to £250,000.
0:56:42 > 0:56:47I would market this property in the region of 240,000 to £250,000.
0:56:47 > 0:56:52Wow. That higher figure would give Anish a profit of around £68,000,
0:56:52 > 0:56:56minus the usual tax and expenses, for just three weeks' work.
0:56:56 > 0:56:58Is he happy with that?
0:56:59 > 0:57:01Very happy. That's exactly what we budgeted.
0:57:01 > 0:57:04We thought it would be between 235 and 240.
0:57:04 > 0:57:06So very happy with that.
0:57:07 > 0:57:09What about rental valuations?
0:57:09 > 0:57:16I think this property should rent for about £1,000 to 1,100 per calendar month.
0:57:16 > 0:57:19This property would rent for £1,150 per calendar month.
0:57:19 > 0:57:21Very good. Happy with those figures.
0:57:21 > 0:57:23We budgeted for 1,100
0:57:23 > 0:57:28and we've managed to achieve 1,150 on a 24-month tenancy, so we're very happy.
0:57:28 > 0:57:33That rental figure gives Anish a yield of just over 7.5 per cent.
0:57:38 > 0:57:42This investment was Anish's first as a full-time developer.
0:57:42 > 0:57:44And it's been a great success.
0:57:44 > 0:57:46And he's already onto the next one.
0:57:46 > 0:57:48We've secured another property.
0:57:48 > 0:57:51It's a three-bedroomed house.
0:57:51 > 0:57:54It needs full refurbishment, so there's a lot more work to be done.
0:57:54 > 0:57:56But I'm looking forward to it.
0:57:58 > 0:58:01We hope you've enjoyed looking at today's property portfolio.
0:58:01 > 0:58:05Yes. Join us next time for more brave buyers' stories
0:58:05 > 0:58:08- here on Homes under the Hammer. - See you then!- Bye.- Goodbye!
0:58:29 > 0:58:32Subtitles by Red Bee Media Ltd