0:00:02 > 0:00:04Hello. Buying property can have its highs and its lows.
0:00:04 > 0:00:06- It's not always as easy as it looks. - No.
0:00:06 > 0:00:09But there is one part of the process that you can eliminate -
0:00:09 > 0:00:13skipping the dreadful property chain by buying at auction.
0:00:39 > 0:00:42Well, there are all sorts of properties sold at auctions these days.
0:00:42 > 0:00:46There certainly are. And it's the variety that keeps us all riveted.
0:00:46 > 0:00:51So here are the three properties that sold at auction on today's programme.
0:00:51 > 0:00:56In Derbyshire, this house seems to be suffering from split ends.
0:00:56 > 0:01:01Tipping the extension away from the main body of the house.
0:01:02 > 0:01:04That's bad.
0:01:04 > 0:01:08Whereas in Kent, there's a property that could be a cut above the rest.
0:01:08 > 0:01:14You know, for the guide price of 30 to 35,000, I think it's a snip.
0:01:15 > 0:01:20But could this place in Shropshire be the highlight of the show?
0:01:20 > 0:01:26For a flat, holy schmoly, lots and lots of room.
0:01:26 > 0:01:28All these properties are being sold at auction,
0:01:28 > 0:01:30we'll find out who bought them and what they paid
0:01:30 > 0:01:34- when they went under the hammer. - You bought it, sir, well done.
0:01:40 > 0:01:42Are you a bit of a townie,
0:01:42 > 0:01:45someone who goes pale at the thought of having no shops
0:01:45 > 0:01:47or pubs on your doorstep?
0:01:47 > 0:01:50Or are you a little bit country, preferring peace and scenery?
0:01:50 > 0:01:54This pretty place could be the ideal location for both.
0:01:54 > 0:01:59You wouldn't believe you were just five miles from Derby city centre.
0:01:59 > 0:02:04I'm in Burnaston, an idyllic rural hamlet.
0:02:04 > 0:02:07Yet you've got great access to the motorway networks.
0:02:09 > 0:02:11What a great place to live.
0:02:11 > 0:02:15The property that was up for auction also sounds like an really interesting opportunity.
0:02:15 > 0:02:22£240,000 plus, detached, three bedrooms, 1970s house.
0:02:23 > 0:02:27It's certainly of its time, even with the mock Georgian style window
0:02:27 > 0:02:30grafted onto the red brick frontage.
0:02:30 > 0:02:33MUSIC: "Brick House" by The Commodores
0:02:41 > 0:02:45Oh, yeah, straightaway, very classic '70s design.
0:02:45 > 0:02:48Big open entrance hall area,
0:02:48 > 0:02:52they tended to do that in the '70s, have lots of big communal areas,
0:02:52 > 0:02:54sometimes at the expense of the rooms.
0:02:55 > 0:02:59I quite like it, it gives a very open-plan feel to a property.
0:02:59 > 0:03:03Large sort of dual aspect living room on that side.
0:03:03 > 0:03:06Downstairs loo which is useful. Bit of a cloakroom there.
0:03:06 > 0:03:10Stairs up to your bedrooms and then through to the kitchen.
0:03:10 > 0:03:15This is a really nice living space as well as a kitchen,
0:03:15 > 0:03:19so that fits in very well with modern living styles.
0:03:19 > 0:03:23And a sort of a throughway into the rear end of living room area.
0:03:23 > 0:03:27Nice size, obviously in need of refurbishment
0:03:27 > 0:03:29and bringing up to date.
0:03:30 > 0:03:33A bit of a crack there
0:03:33 > 0:03:36which on its own wouldn't be an issue, but there's another one
0:03:36 > 0:03:43basically at the same point on the other side of the wall there.
0:03:43 > 0:03:47My guess is, something is going on here, this maybe an extension.
0:03:47 > 0:03:49I need to explore further.
0:03:53 > 0:03:58Well, the answer may well be around the side of the property here.
0:03:58 > 0:04:01This is the original building and here at the back,
0:04:01 > 0:04:03this is the extension.
0:04:03 > 0:04:06You can see the different colour of the bricks,
0:04:06 > 0:04:08they've tried to match them, but not quite.
0:04:08 > 0:04:10And look at this crack.
0:04:10 > 0:04:13It's along the line of where the new extension is,
0:04:13 > 0:04:16so what is happening...my guess is that the
0:04:16 > 0:04:22foundations of the extension are sinking and they're basically
0:04:22 > 0:04:26tipping the extension away from the main body of the house.
0:04:28 > 0:04:30That's bad. I mean, that is bad.
0:04:30 > 0:04:34You either are going to have to underpin the existing foundations
0:04:34 > 0:04:39or do something else, cos that's only going to get worse and worse.
0:04:39 > 0:04:40How annoying.
0:04:40 > 0:04:43Eventually it could lead to a parting of the ways
0:04:43 > 0:04:46of the main structure and its extension,
0:04:46 > 0:04:49giving the house something of a split personality.
0:04:49 > 0:04:53MUSIC: "Go Your Own Way" by Fleetwood Mac
0:04:57 > 0:05:00But luckily if the new owners are going to shell out for an extension,
0:05:00 > 0:05:04then at least they'll have some gorgeous views to make up for it.
0:05:04 > 0:05:09Upstairs and lots more open space. You know what?
0:05:09 > 0:05:12I actually love it, it gives a really nice feel to the house.
0:05:12 > 0:05:15Although what it does mean is you've only got three bedrooms.
0:05:15 > 0:05:16If this was a modern house,
0:05:16 > 0:05:19I bet you'd get four or five in a house this size.
0:05:19 > 0:05:23But one thing I've got to let you see is the bathroom up here.
0:05:23 > 0:05:25At this point what we're going to do is
0:05:25 > 0:05:27we're going to turn off the colour.
0:05:27 > 0:05:29Now you're watching me in black and white.
0:05:34 > 0:05:38Right, what colour do you think it is?
0:05:38 > 0:05:39Let's turn on the colour again.
0:05:41 > 0:05:43Fantastic.
0:05:44 > 0:05:47Well, it's not quite your classic 1970s avocado,
0:05:47 > 0:05:51but this turquoise suite and tiles are groovy.
0:05:51 > 0:05:54Unfortunately, it is very likely that a coloured suite like this
0:05:54 > 0:05:57could devalue your property.
0:06:02 > 0:06:05So, when it comes to bathrooms, you can have any colour you like
0:06:05 > 0:06:07as long as it's white.
0:06:07 > 0:06:10Another problem is the huge hole in the ceiling,
0:06:10 > 0:06:13which does look like a water tank problem in the loft.
0:06:13 > 0:06:15So it's best to get that looked at.
0:06:15 > 0:06:18And get the roof checked out too, just in case.
0:06:22 > 0:06:25All in all, though, for that £240,000 guide price,
0:06:25 > 0:06:29there's a lot of house and garden in a lovely location.
0:06:29 > 0:06:33We spoke to the auctioneer who sold the property for a second opinion,
0:06:33 > 0:06:36starting with his thoughts on the problem with the extension.
0:06:36 > 0:06:37I think you would replace it
0:06:37 > 0:06:40with something either single-storey or double storey.
0:06:40 > 0:06:43You've got a large garage attached to one side of the house
0:06:43 > 0:06:47and there are distinct opportunities in my view to go out over
0:06:47 > 0:06:50the top of that, subject to doing some foundation checks.
0:06:50 > 0:06:54But you've got to make it at least four bedrooms with an ensuite or two.
0:06:54 > 0:06:56Probably even preferably five.
0:06:56 > 0:07:00But would adding those extra bedrooms really be worth
0:07:00 > 0:07:02the extra investment?
0:07:02 > 0:07:06What sort of returns could the house make?
0:07:06 > 0:07:09In value terms, if you renovate what's here,
0:07:09 > 0:07:12address the issue of the garden room extension,
0:07:12 > 0:07:16it would have a value of probably towards £400,000.
0:07:16 > 0:07:19If you extended to make it into four bedrooms, I think
0:07:19 > 0:07:23you're probably push that up to nearer £500,000.
0:07:23 > 0:07:28If you made it into five bedrooms, I would say probably around £550,000.
0:07:28 > 0:07:31Well, there's money to be made here whatever you decide to do.
0:07:31 > 0:07:34But what about the rental market?
0:07:34 > 0:07:37If we renovate what we've got now, it would have a rental value
0:07:37 > 0:07:40in the order of £800 to £850 per calendar month.
0:07:40 > 0:07:44Extended, four bedrooms, more desirable probably,
0:07:44 > 0:07:47you could push that up to nearer £1,000 per calendar month.
0:07:47 > 0:07:51If there was a fifth bedroom here, it would probably be about the same
0:07:51 > 0:07:54as the four-bedroom rental value, it won't have a great effect.
0:07:55 > 0:08:00Well, this is a classic '70s house in need of its 40-year makeover.
0:08:00 > 0:08:03But you know what, the great news is, the location
0:08:03 > 0:08:06and the size of the plot and the property itself means
0:08:06 > 0:08:08that whatever you do to bring it up to date,
0:08:08 > 0:08:10you are going to get your money back.
0:08:10 > 0:08:13The area, the property, will bear it.
0:08:13 > 0:08:15Let's see who fancied the opportunity
0:08:15 > 0:08:16when it went under the hammer.
0:08:16 > 0:08:21The house was the second to last lot, so it was a relatively
0:08:21 > 0:08:24small auction crowd who prepared to do battle over it.
0:08:24 > 0:08:28Lock 76, 240 is the guide price,
0:08:28 > 0:08:30£240,000, start me.
0:08:30 > 0:08:32240 I've got, thank you.
0:08:32 > 0:08:35At 240, 42, 242?
0:08:35 > 0:08:36244?
0:08:36 > 0:08:38244.
0:08:38 > 0:08:4246. 246. 248?
0:08:42 > 0:08:44248 I have. 250.
0:08:44 > 0:08:47252.
0:08:47 > 0:08:50253. 254.
0:08:50 > 0:08:52255.
0:08:52 > 0:08:54256. 257?
0:08:55 > 0:08:58257. 258...
0:08:58 > 0:09:02The bidding battle was finally down between two interested parties,
0:09:02 > 0:09:06and we rejoin the auction as the bidding reaches £301,000.
0:09:06 > 0:09:10301, thank you. 302. 303?
0:09:10 > 0:09:16Half? £302,500. 303.
0:09:16 > 0:09:19£303,000. Half somewhere else?
0:09:19 > 0:09:21And a half.
0:09:21 > 0:09:24And four. 304.
0:09:24 > 0:09:29Once at 304, twice at 304.
0:09:29 > 0:09:30Third opportunity.
0:09:30 > 0:09:32The hammer is down, it's sold, 304.
0:09:32 > 0:09:34It's yours, thank you very much.
0:09:34 > 0:09:37And that successful bidder finally getting the lot
0:09:37 > 0:09:39for £304,000 was Andy.
0:09:39 > 0:09:44Andy runs a property development company with his wife Julia
0:09:44 > 0:09:45and father Brian.
0:09:45 > 0:09:49And he has a taste for tackling executive-style homes.
0:09:49 > 0:09:53So why did he take on this house from the 1970s?
0:09:53 > 0:09:56- Andy, great to meet you.- And you. - Congratulations.- Thank you.
0:09:56 > 0:09:58Tell me why you wanted to buy this house.
0:09:58 > 0:10:03It's the worst house in the best street. It's a very desirable area.
0:10:03 > 0:10:06We've just sold a house, which we developed,
0:10:06 > 0:10:08so we've got nothing to do for our team.
0:10:08 > 0:10:12So I went yesterday to an auction to buy two plots of land.
0:10:12 > 0:10:14It fetched more than I wanted to pay.
0:10:14 > 0:10:18I viewed this before, just in case, so this was a backdrop.
0:10:18 > 0:10:22- So I bought it for that.- Right. As a what, then? As a project?
0:10:22 > 0:10:26Yes, we will knock all this extension because it's broke its back,
0:10:26 > 0:10:28we'll knock that down.
0:10:28 > 0:10:32We'll knock some of the walls out, we'll extend it two storey.
0:10:32 > 0:10:34Make it four-bed, one ensuite.
0:10:34 > 0:10:38Big dining-kitchen, new bathroom, new kitchen obviously.
0:10:38 > 0:10:40And flog it on.
0:10:40 > 0:10:43- Right. So this is something you do, is it?- Yes, professionally.
0:10:43 > 0:10:47So general house refurbishments or bigger projects like this?
0:10:47 > 0:10:52Normally new builds and we've done a grade II listed farmhouse,
0:10:52 > 0:10:54a barn conversions with 18 acres.
0:10:54 > 0:10:57- Wow.- This is probably one of the smaller units we do.
0:10:57 > 0:10:59So this, just because it's ready to go,
0:10:59 > 0:11:02I completed two days ago and we'll start on Monday.
0:11:02 > 0:11:05- Right. Bing, bang, boom, in and out.- Yeah.
0:11:05 > 0:11:08With seven years' experience in buying, renovating
0:11:08 > 0:11:11and selling properties, Andy has also built up
0:11:11 > 0:11:14a small portfolio of three rental properties.
0:11:14 > 0:11:18All that experience means he not only knows when he's going to start,
0:11:18 > 0:11:21he knows exactly what he's doing and how he's going to do it.
0:11:21 > 0:11:24I'm a plumbing-heating engineer by trade.
0:11:24 > 0:11:26I've been in the trade for 30 years.
0:11:26 > 0:11:28- I trained to be an architect for two years.- Right.
0:11:28 > 0:11:32My father's half in the business. He's an architect.
0:11:32 > 0:11:36And we look around and we saw that, and it means it's unmortgageable.
0:11:36 > 0:11:38They'll only lend a certain amount on this house.
0:11:38 > 0:11:42- That's why there wasn't many people bidding for it.- Right.
0:11:42 > 0:11:45There's two things in life that are an absolute certainty.
0:11:45 > 0:11:48You've got to pay tax and flat roofs leak.
0:11:49 > 0:11:51- So that's it, it's gone. - You've got it.
0:11:51 > 0:11:55So, it's bye-bye to this extension.
0:11:55 > 0:11:58It's literally on the way out.
0:11:58 > 0:12:00Andy plans to build a new double-storey extension
0:12:00 > 0:12:04which will add another bedroom, making this a four-bed house,
0:12:04 > 0:12:07and also create two ensuite bathrooms upstairs.
0:12:07 > 0:12:11Because it's at the rear, it falls under permitted development rights,
0:12:11 > 0:12:14so no planning permission will be required.
0:12:14 > 0:12:17On the ground floor, it will also house a kitchen-diner,
0:12:17 > 0:12:20with bi-folding doors overlooking that beautiful countryside.
0:12:20 > 0:12:23So when you're not doing building works, do you have any hobbies?
0:12:23 > 0:12:25Yes, I'm into camper vans.
0:12:25 > 0:12:30- We go to the camper van festivals, the meetings.- Oh, great.
0:12:30 > 0:12:34There's one on the Isle of Wight next weekend so we'll be going down there.
0:12:34 > 0:12:36- Lots of lots of camper vans? - Yes, loads.
0:12:36 > 0:12:39It's good that Andy can find time to relax
0:12:39 > 0:12:43because he's aiming to do all the works here in six months.
0:12:43 > 0:12:46He'll be getting in his regular team of workmen to do the job
0:12:46 > 0:12:51and he set a fairly open budget of between is £60,000 and £100,000.
0:12:53 > 0:12:55Even if he does go to that top figure,
0:12:55 > 0:12:59this would mean his investment will be just over £400,000.
0:12:59 > 0:13:03However, with average house prices in this desirable area
0:13:03 > 0:13:05hitting the £500,000 mark,
0:13:05 > 0:13:10he should still be in for a pretty decent profit of £100,000
0:13:10 > 0:13:14and the house could be dragged kicking and screaming into this century.
0:13:16 > 0:13:20- And the bathroom suite.- Lovely. - Are we going to keep that?- No.
0:13:20 > 0:13:23- It's an amazing, colour, isn't it?- It's amazing.
0:13:23 > 0:13:26- When I was an apprentice, I used to fit that colour.- Did you?
0:13:26 > 0:13:28- How many years ago was that? - At the beginning of the '80s.
0:13:28 > 0:13:30It was probably just going out.
0:13:30 > 0:13:33Bally brown, they had, and avocado was really in and pampas.
0:13:33 > 0:13:36So yeah, everyone wanted those colours.
0:13:36 > 0:13:39- Right, something like Californian blue.- Something like that, yes.
0:13:39 > 0:13:42- Listen, congratulations, good luck with it.- Thank you.
0:13:42 > 0:13:45- We look forward to seeing how you get on.- OK.
0:13:45 > 0:13:49Well, bing, bang, boom, Andy seems to know exactly what he's doing.
0:13:49 > 0:13:52A six months' timescale, 100 grand profit.
0:13:52 > 0:13:56It's good money if you can do it. How will he get on?
0:13:56 > 0:13:58I can't wait to see how the place turns out.
0:13:58 > 0:14:00You can find out later in the show.
0:14:04 > 0:14:07While Martin might have faith that Andy is on the right road
0:14:07 > 0:14:10to doing a successful property development,
0:14:10 > 0:14:13I'm on my own property pilgrimage in Teynham, Kent,
0:14:13 > 0:14:17on the Pilgrims' route to Canterbury.
0:14:19 > 0:14:21Teynham is a very ancient village.
0:14:21 > 0:14:25The land here once belonged to Christchurch in Canterbury,
0:14:25 > 0:14:28and in medieval times, there used to be a palace here,
0:14:28 > 0:14:30built for the archbishops.
0:14:30 > 0:14:33It was also an area known for its cherry orchards,
0:14:33 > 0:14:38and fruit from Teynham orchards graced the table of King Henry VIII.
0:14:40 > 0:14:44Today, the village is still surrounded by lovely countryside.
0:14:44 > 0:14:47And yes, the main road runs right through it. But it means Teynham
0:14:47 > 0:14:51is in easy reach of the towns of Faversham and Sittingbourne.
0:14:53 > 0:14:56That busy road might be a blessing for the property I'm here to see,
0:14:56 > 0:14:59because it's a commercial property.
0:14:59 > 0:15:03And the guide price is £30,000 to £35,000.
0:15:04 > 0:15:07You can tell from the outside this used to be a hairdressers.
0:15:07 > 0:15:11And you can definitely tell from the inside it used to be a hairdressers.
0:15:11 > 0:15:15It's in really good condition. Very red.
0:15:15 > 0:15:18You've got all these lovely mirrors lined up already.
0:15:18 > 0:15:22A little basin at the back. You've even still got the price list up.
0:15:22 > 0:15:24A cut and blow dry, 20 quid.
0:15:24 > 0:15:26I really like it.
0:15:26 > 0:15:29Somebody could come in here and set up a business straightaway.
0:15:29 > 0:15:31It's got A1 business usage,
0:15:31 > 0:15:34so it doesn't actually have to stay as a hairdressers.
0:15:34 > 0:15:38And for the guide price of £30,000-£35,000...
0:15:38 > 0:15:40I think it's a snip.
0:15:42 > 0:15:45As well as the main shop floor, there's also a toilet,
0:15:45 > 0:15:49a small kitchenette area, and a conservatory at the back.
0:15:49 > 0:15:52So as far as square footage goes, it's not massive, but would suit
0:15:52 > 0:15:57any number of small businesses, from a retail shop to office space.
0:15:57 > 0:15:58But there's more.
0:15:58 > 0:16:02It's no great stretch of the imagination to see
0:16:02 > 0:16:06there is potential here to build on top of the current property.
0:16:06 > 0:16:08Add another storey,
0:16:08 > 0:16:11you could turn this place into a house, like next door.
0:16:11 > 0:16:14But it would all depend on being granted planning permission, of course.
0:16:14 > 0:16:17And one crucial step to persuading the planners
0:16:17 > 0:16:21would be to provide parking, which at the moment is non-existent.
0:16:21 > 0:16:24But let's check what's behind this wall.
0:16:24 > 0:16:27Ah, now it is a road.
0:16:27 > 0:16:30That's great news because you could knock this wall down,
0:16:30 > 0:16:32section off part of this garden
0:16:32 > 0:16:35and then you would have off-street parking.
0:16:35 > 0:16:36That's exciting.
0:16:37 > 0:16:41Permission to change use from business to residential
0:16:41 > 0:16:44could take time, and build costs could be substantial.
0:16:44 > 0:16:47Whether it's to add a storey, or demolish, or rebuild,
0:16:47 > 0:16:50you would have to be sure of your figures.
0:16:52 > 0:16:54And to help with the maths,
0:16:54 > 0:16:58we called in a local estate agent to evaluate all the options here.
0:17:00 > 0:17:01As an alternative,
0:17:01 > 0:17:04certainly the property could be residential premises.
0:17:04 > 0:17:06It would need complete redevelopment
0:17:06 > 0:17:10and that would involve knocking down the shop
0:17:10 > 0:17:14and rebuilding, potentially for a house, or even two flats.
0:17:14 > 0:17:17The local authority would generally be in favour,
0:17:17 > 0:17:21but the owners are going to have to prove a case to the council
0:17:21 > 0:17:26that there isn't a use for commercial premises of this nature any more.
0:17:26 > 0:17:30But is there value in the shop as it stands, in rent or if sold on?
0:17:30 > 0:17:34For premises of this nature, it would achieve a rent of
0:17:34 > 0:17:36around £250 per calendar month.
0:17:36 > 0:17:39The value could be around £50,000.
0:17:39 > 0:17:42And what about mixed residential and commercial use?
0:17:42 > 0:17:44Keep the shop and build a flat above.
0:17:46 > 0:17:49If the owners decided to keep the shop and have one flat above,
0:17:49 > 0:17:53they would not get quite as good a return on their investment
0:17:53 > 0:17:56as if they had two one-bedroom flats or a two-bedroom house.
0:17:56 > 0:18:00A two-bedroom house in this location with off-street parking available
0:18:00 > 0:18:04would probably achieve between £650 and £675 per calendar month.
0:18:04 > 0:18:06A one-bedroom flat here would probably rent
0:18:06 > 0:18:08at around £500 per calendar month.
0:18:08 > 0:18:12OK, so that's a much higher return than if you just kept the shop.
0:18:12 > 0:18:13But what about sale values?
0:18:13 > 0:18:17A two-bedroom house in this location with off-street parking
0:18:17 > 0:18:21would probably achieve somewhere between £125,000 and £130,000.
0:18:21 > 0:18:24One-bedroom flats, if there were two here,
0:18:24 > 0:18:26one on the ground floor and one on the first floor,
0:18:26 > 0:18:30then the sales values would be somewhere around £70,000 each.
0:18:30 > 0:18:34But remember, not only would planning permission be needed,
0:18:34 > 0:18:38you'd also need the change of use from commercial to residential.
0:18:38 > 0:18:40So the numbers might sound good,
0:18:40 > 0:18:44but there would be an awful lot of work to convert this building.
0:18:45 > 0:18:49This is an interesting property at a reasonable guide price,
0:18:49 > 0:18:51with some good old potential.
0:18:51 > 0:18:54Let's see who went for it at the auction.
0:18:56 > 0:19:01A former hairdresser's, a snip of a price at £30,000-£35,000.
0:19:01 > 0:19:04And what may I say? Start me at £30,000.
0:19:04 > 0:19:08A little lock-up shop, 30. Thank you very much. On the right, sir.
0:19:08 > 0:19:0932?
0:19:09 > 0:19:1232 I'm bid. And four. And four I have.
0:19:12 > 0:19:16And 36, no. £34,000 I am bid.
0:19:16 > 0:19:18£34,000 on the right.
0:19:18 > 0:19:22At £34,000 I'm bid. 36 do I see?
0:19:22 > 0:19:27At £34,000 I'm bid. Take 1,000 if it helps. At £34,000, the bid.
0:19:27 > 0:19:2934 I have.
0:19:29 > 0:19:3035 do I see?
0:19:30 > 0:19:3335 is bid. And 36?
0:19:33 > 0:19:38No, at £35,000 I have, anybody else can join in.
0:19:38 > 0:19:42At £35,000, a little lock-up, at £35,000.
0:19:42 > 0:19:4336 do I see?
0:19:43 > 0:19:47For the first time then, if there is no further increase,
0:19:47 > 0:19:49you are out of the back.
0:19:49 > 0:19:52At £35,000, the gentleman with the yellow tie.
0:19:52 > 0:19:55At £35,000 for the second time.
0:19:55 > 0:19:58£35,000 for the third and final time.
0:19:58 > 0:20:00At £35,000, are you all done?
0:20:00 > 0:20:03Sold at £35,000, well done, sir.
0:20:05 > 0:20:09Well, regular viewers may just recognise one of those bidders.
0:20:09 > 0:20:14It's Sunil, who's appeared on the show before way back in 2005.
0:20:14 > 0:20:17Back then, Sunil was a busy property developer
0:20:17 > 0:20:19who also ran a letting agency.
0:20:19 > 0:20:22He bought a house in Stoke to do up and rent out.
0:20:25 > 0:20:28But Sunil and his wife Geeta actually live in Kent,
0:20:28 > 0:20:32so they not only buy property in Stoke in the Midlands,
0:20:32 > 0:20:36they also buy closer to home. Hence the purchase of the shop in Teynham.
0:20:36 > 0:20:38So, eight years on and they are obviously
0:20:38 > 0:20:41still busy purchasing property.
0:20:41 > 0:20:43I met a couple back at their latest buy
0:20:43 > 0:20:46to find out how business is going.
0:20:48 > 0:20:50Sunil and Geeta, congratulations.
0:20:50 > 0:20:52I know you've appeared on the show before with Martin.
0:20:52 > 0:20:55- Yes, it was really good. - First time I've met you two.
0:20:55 > 0:20:58Well done, this is great. Why did you want to buy this?
0:20:58 > 0:21:01Location is really good, it's on a high street,
0:21:01 > 0:21:03so I think there's a lot of potential here.
0:21:03 > 0:21:08When we saw it, we thought it could be rented out
0:21:08 > 0:21:11just as it is, or we could build on it,
0:21:11 > 0:21:13or we could convert it into a house.
0:21:13 > 0:21:16So it did actually have a lot of potential.
0:21:16 > 0:21:18And the price was pretty good too.
0:21:18 > 0:21:22Yes, £35,000 for all this.
0:21:22 > 0:21:25They look like they've bagged a bargain to me.
0:21:25 > 0:21:28Guys, day-to-day, what do you do to keep yourselves so busy?
0:21:28 > 0:21:31We've got an office in Sittingbourne which looks after
0:21:31 > 0:21:33our properties here in Sittingbourne
0:21:33 > 0:21:35and we help landlords let their properties,
0:21:35 > 0:21:37so we've got a letting agency
0:21:37 > 0:21:40in Sittingbourne and it manages the properties from here.
0:21:40 > 0:21:43So that's our day-to-day job, really.
0:21:43 > 0:21:46Sunil, do you buy a lot of commercial property,
0:21:46 > 0:21:48or is it residential that you specialise in?
0:21:48 > 0:21:53It's 99% residential, but over the last year or 18 months,
0:21:53 > 0:21:57we've found lots of little shops like these that are good value,
0:21:57 > 0:22:01good potential for rental as well as development.
0:22:01 > 0:22:03And there are many of them available,
0:22:03 > 0:22:05so we're moving into that market more.
0:22:05 > 0:22:09Over the dinner table, what do you talk about - property?
0:22:09 > 0:22:13We do, I've been brought up in the property business 20, 30 years,
0:22:13 > 0:22:15so yes, it's part of our blood now.
0:22:15 > 0:22:20Sunil used to work as an operations manager for service stations
0:22:20 > 0:22:23and started buying property back in 1989.
0:22:23 > 0:22:27By 2003, he'd worked up a big enough portfolio
0:22:27 > 0:22:30to enable him to leave the day job.
0:22:30 > 0:22:31Wife Geeta helps in the business
0:22:31 > 0:22:34and also teaches at a business school.
0:22:34 > 0:22:38So these two are definitely an experienced property power couple.
0:22:38 > 0:22:42The big question is, what are you two going to do with this?
0:22:42 > 0:22:45Firstly, our plan is to rent out the shop.
0:22:45 > 0:22:47And then make a planning application for a flat upstairs.
0:22:47 > 0:22:50If we can get an apartment upstairs, one bedroom,
0:22:50 > 0:22:53that would bring us an income upstairs as well as downstairs.
0:22:53 > 0:22:57- Fantastic. So you get two bites of the cherry?- Absolutely, yes.
0:22:57 > 0:22:58Really clever idea.
0:22:58 > 0:23:01How much do you think it would cost to do something like that,
0:23:01 > 0:23:03and would it be worth it?
0:23:03 > 0:23:08Our budget is around £60,000 to bring the overall building into 100.
0:23:08 > 0:23:12And if we could get to that budget, it would be well worth doing.
0:23:12 > 0:23:16So, plan A is to build a flat above the shop
0:23:16 > 0:23:19and keep the ground floor as commercial premises.
0:23:20 > 0:23:22So it's going to be let as a hairdressers.
0:23:22 > 0:23:24- Whatever anybody wants.- It could be.
0:23:24 > 0:23:28Oh, you're not sure, it might not be, it could be something else, with its A1 usage.
0:23:28 > 0:23:30We've had interest.
0:23:30 > 0:23:35- Really?- We've had somebody who wants to turn it into a restaurant
0:23:35 > 0:23:38and a takeaway shop, so that's another possibility.
0:23:38 > 0:23:41What we like about this place is that there's
0:23:41 > 0:23:43so much you can do to it. It's got so much potential.
0:23:43 > 0:23:46It's going to be exciting finding out what business takes place here
0:23:46 > 0:23:49and if you do get the permissions to go above and turn it into a flat.
0:23:49 > 0:23:51- Well done.- Thank you.- Thank you.
0:23:53 > 0:23:58Sunil and Geeta have 24 years of property experience.
0:23:58 > 0:24:00That's a lot of know-how to bring to the table.
0:24:00 > 0:24:04But buying commercial property, it's a relatively new venture for them,
0:24:04 > 0:24:09and then there's the tricky planning process to get through for the flat.
0:24:09 > 0:24:12Will this couple be allowed to build what they want above the shop
0:24:12 > 0:24:16and will they be able to find a tenant for their business premises
0:24:16 > 0:24:19that's happy to live with building work going on?
0:24:19 > 0:24:22You can find out how the couple get on later in the programme.
0:24:24 > 0:24:26Coming up, we see a Shropshire flat
0:24:26 > 0:24:29that unexpectedly could be the cat's whiskers.
0:24:30 > 0:24:33What a surprise. And there's more.
0:24:35 > 0:24:37Back in Kent, we find out
0:24:37 > 0:24:41how Sunil and Geeta's snip of a purchase became top dog.
0:24:41 > 0:24:43I think they've done a fantastic job.
0:24:48 > 0:24:52Now we return to the quite village of Burnaston.
0:24:52 > 0:24:56It was here where we first saw a three-bedroomed detached house
0:24:56 > 0:24:59with good-sized gardens to the front and rear.
0:24:59 > 0:25:03And lovely views of the surrounding countryside.
0:25:04 > 0:25:09It was somewhat tired and dated, with signs of damp and disrepair.
0:25:09 > 0:25:13And an extension that was making a break for freedom.
0:25:16 > 0:25:20The foundations of the extension are sinking.
0:25:20 > 0:25:25They are basically tipping the extension away
0:25:25 > 0:25:27from the main body of the house.
0:25:27 > 0:25:28That's bad.
0:25:28 > 0:25:31For experienced property developer Andy,
0:25:31 > 0:25:34this was all pretty straightforward.
0:25:34 > 0:25:38After all, he specialises in new-builds and barn conversions.
0:25:38 > 0:25:42So to have a watertight shell to start with was a bonus.
0:25:42 > 0:25:46Mind you though, he seemed intent on destruction before construction.
0:25:48 > 0:25:51There's two things in life that are an absolute certainty.
0:25:51 > 0:25:54You've got to pay tax and flat roofs leak.
0:25:54 > 0:25:57So that's it, it's gone.
0:25:57 > 0:26:01We'll knock some of the walls out, extend it two-storey,
0:26:01 > 0:26:03make it four-bed, one ensuite.
0:26:03 > 0:26:07A big dining-kitchen, new bathroom, new kitchen, obviously.
0:26:07 > 0:26:09And flog it on.
0:26:10 > 0:26:15Having paid £304,000 at auction, Andy hoped he could do the extensive
0:26:15 > 0:26:20renovation on a £70,000 budget and a timescale of six months.
0:26:20 > 0:26:24But it seemed some family members had other ideas.
0:26:24 > 0:26:28# Hey, brother
0:26:28 > 0:26:32# There's an endless road to rediscover... #
0:26:32 > 0:26:36My sister wanted to buy it and she came in at the early stage.
0:26:36 > 0:26:40She'd sold her house. We actually did it in 14 weeks.
0:26:40 > 0:26:43And that was our main problem, the time schedule,
0:26:43 > 0:26:45because she had nowhere to live.
0:26:45 > 0:26:49So, Andy's sister was hoping that big brother could provide her
0:26:49 > 0:26:52with a new family home. Has he come up with the goods?
0:27:01 > 0:27:05Well, he sure has. With extensions both front and back.
0:27:14 > 0:27:18Inside, a magnificent open-plan layout.
0:27:18 > 0:27:19Well done, bro!
0:27:27 > 0:27:29Right, so this is the kitchen, obviously.
0:27:29 > 0:27:33This is in the new part, the extension we rebuilt.
0:27:33 > 0:27:37So basically we put patio doors in, replaced the window,
0:27:37 > 0:27:39replastered, new electrics.
0:27:39 > 0:27:43We've put a high-gloss kitchen in with a quartz top.
0:27:43 > 0:27:47Tiled the floor and we've got a wooden floor in the dining area.
0:27:47 > 0:27:49I think it looks very pleasant.
0:27:52 > 0:27:55Yes, downstairs is looking fantastic.
0:27:57 > 0:28:00And the new extensions have allowed Andy
0:28:00 > 0:28:04to turn what was a downstairs toilet into a study area.
0:28:04 > 0:28:06But more importantly has enabled him
0:28:06 > 0:28:09not only to add another bedroom,
0:28:09 > 0:28:11to make this now a four-bedroomed house,
0:28:11 > 0:28:15but the master bedroom is now twice the size.
0:28:20 > 0:28:22With an ensuite to boot.
0:28:24 > 0:28:27And remember that lovely coloured bathroom suite?
0:28:28 > 0:28:30Well, just look at it now.
0:28:30 > 0:28:32# Colours are changing
0:28:32 > 0:28:33# Colours are changing
0:28:33 > 0:28:35# Colours are changing
0:28:35 > 0:28:37# Colours are changing... #
0:28:39 > 0:28:44And, as the array of boxes show, his sister moved in just two days ago.
0:28:44 > 0:28:48So, while she may have some sorting out to do, it seems
0:28:48 > 0:28:52that for Andy this project is nearly done, two months ahead of schedule.
0:28:52 > 0:28:54How on earth did he manage that?
0:28:54 > 0:28:58I am by trade a plumber, but I'm the project manager.
0:28:58 > 0:29:02I hate that word, it's a glorified van driver.
0:29:02 > 0:29:06I make sure that everyone is fed the materials they need.
0:29:06 > 0:29:09I'm on the phone to make sure they're here when I want them here.
0:29:09 > 0:29:11And I pre-book everybody,
0:29:11 > 0:29:13the plasterers, the electricians, everybody.
0:29:13 > 0:29:17It's pre-booked, give me a week in six weeks' time,
0:29:17 > 0:29:19I need you for a week or two weeks.
0:29:19 > 0:29:22And that's the secret of it. And don't change your mind.
0:29:22 > 0:29:25Undoubtedly, Andy has thrown a lot of resources
0:29:25 > 0:29:29and effort to meet his new deadline, but at what cost?
0:29:29 > 0:29:33The original budget was about £70,000, we thought.
0:29:33 > 0:29:37But to be honest, we went over it. It's about £100,000.
0:29:37 > 0:29:41The budget, what we spent, including the stamp duty, which was
0:29:41 > 0:29:45the best part of 10,000 quid, lawyers' fees, building control fees,
0:29:45 > 0:29:49so there's all sorts of fees as well as not just materials and labour.
0:29:51 > 0:29:52So, a bit of an overspend.
0:29:52 > 0:29:55But then the £100,000 does include all his costs.
0:29:55 > 0:30:00So, with that £304,000 purchase price,
0:30:00 > 0:30:03his total investment stands at £404,000.
0:30:03 > 0:30:05Value for money?
0:30:05 > 0:30:08What do two local property experts think?
0:30:11 > 0:30:15What's happened here has probably been one of the best schemes
0:30:15 > 0:30:16you could think of.
0:30:16 > 0:30:20Maybe some people would have made it five bedrooms as opposed to four,
0:30:20 > 0:30:22but everything that has been done is high quality.
0:30:22 > 0:30:27It's had a lot of thought into it. And it really has produced the goods.
0:30:27 > 0:30:28The property is lovely.
0:30:28 > 0:30:32It's been extended very well, and presented to a high standard.
0:30:32 > 0:30:34Fantastic view. A lovely place to live.
0:30:36 > 0:30:41This is now his sister's new home and he sold it to her at cost.
0:30:41 > 0:30:45But how much is the family's £404,000 investment currently worth?
0:30:45 > 0:30:48If this went up for sale now,
0:30:48 > 0:30:53I would expect to achieve something in the order of £480,000-£490,000.
0:30:53 > 0:30:54In the current market,
0:30:54 > 0:30:56I would expect this to be approaching half a million.
0:30:56 > 0:30:59£499,950 as an asking price would be sensible.
0:30:59 > 0:31:02That's a very good price. I thought it would be about that.
0:31:02 > 0:31:07That's a potential pre-tax profit of anywhere between £76,000
0:31:07 > 0:31:11and £96,000. Not bad for four months' work.
0:31:11 > 0:31:14But more importantly, this is now a family home.
0:31:14 > 0:31:18And after four years unoccupied, it's ready to be lived in again.
0:31:18 > 0:31:22So despite all the time pressure, did Andy enjoy doing this project?
0:31:26 > 0:31:29I enjoyed it because the last...
0:31:29 > 0:31:31We've done eight before
0:31:31 > 0:31:35and most of them have been barn conversions or new-builds.
0:31:35 > 0:31:38It's been a renovation, a bit different.
0:31:38 > 0:31:41It's nice having a garage so you can have a cup of tea
0:31:41 > 0:31:44and you've got water and the toilet. On a building site, you don't.
0:31:47 > 0:31:50Welcome to Wem, a small market town in Shropshire,
0:31:50 > 0:31:54within commuting distance of both Crewe and Shrewsbury.
0:31:54 > 0:31:58The annual Sweet Pea Show attracts flower fans from all over the world.
0:31:58 > 0:32:03# Sweet pea, apple of my eye... #
0:32:03 > 0:32:06But it wasn't always so sweet and PEAS-ful.
0:32:09 > 0:32:13In 1643, during the English Civil War,
0:32:13 > 0:32:17a band of 5,000 Royalist troops under one Lord Capel,
0:32:17 > 0:32:22invaded the town against only 40 or so Parliamentarians from Wem.
0:32:22 > 0:32:25Luckily, the women of the town came to the rescue
0:32:25 > 0:32:27and saw the Royalists off.
0:32:27 > 0:32:29Hence the legendary battle song,
0:32:29 > 0:32:32"The Women of Wem and a few Musketeers
0:32:32 > 0:32:36"Beat the Lord Capel and all of his Cavaliers."
0:32:36 > 0:32:38Well, I do love a place with a bit of character,
0:32:38 > 0:32:41and apparently that's what I'm here to see.
0:32:41 > 0:32:45It's a three-bedroomed flat, lots of period features, apparently
0:32:45 > 0:32:49It is though on the high street, with a lot of traffic.
0:32:49 > 0:32:52So not a particularly good start.
0:32:52 > 0:32:54Let's hope it improves once we go inside.
0:32:55 > 0:33:00I'm looking at a top-floor duplex flat in this lovely listed building.
0:33:00 > 0:33:03It's one of three self-contained flats
0:33:03 > 0:33:05that share this communal staircase.
0:33:05 > 0:33:07The guide price for the flat
0:33:07 > 0:33:11was originally posted as just £29,000 plus.
0:33:11 > 0:33:15But this was changed on auction day to £60,000.
0:33:15 > 0:33:16More of that later.
0:33:16 > 0:33:18Meanwhile...
0:33:19 > 0:33:21Whoa!
0:33:21 > 0:33:24I was not expecting that.
0:33:24 > 0:33:26What a fantastically grand entrance.
0:33:26 > 0:33:30And immediately you are thinking this must have been, well,
0:33:30 > 0:33:34a pretty grand flat in its day.
0:33:34 > 0:33:37A big entrance hall there, with an amazing sweeping staircase.
0:33:37 > 0:33:41And then into your living room, I mean, look at the floorboards.
0:33:41 > 0:33:44Oak floorboards, absolutely gorgeous if they were stripped back.
0:33:44 > 0:33:46A big regal fireplace.
0:33:46 > 0:33:49These nice windows looking out onto the high street.
0:33:49 > 0:33:51It's very noisy,
0:33:51 > 0:33:54so you'd want to put double glazing at least in there.
0:33:54 > 0:33:58So that's not ideal, but in terms of layout, really nice.
0:33:58 > 0:34:02High ceilings, shuttered windows, lots of original features.
0:34:02 > 0:34:05Yes, well, not an original kitchen, thank goodness.
0:34:05 > 0:34:09But some work needed in there. But overall, what a surprise.
0:34:09 > 0:34:11And there's more.
0:34:12 > 0:34:14# There is so much more
0:34:17 > 0:34:20# Ba-da-da-da-da
0:34:20 > 0:34:22# There is so much more
0:34:24 > 0:34:26# There is so much more... #
0:34:26 > 0:34:31So, up this really quite spectacular staircase,
0:34:31 > 0:34:37which really does give the flat a lovely sort of open feel to the upper floor.
0:34:37 > 0:34:39And lots, lots more space.
0:34:39 > 0:34:43Bedroom that way, in fact two bedrooms that way.
0:34:43 > 0:34:47Obviously floorboards and everything seem a bit rickety,
0:34:47 > 0:34:50but lots of original features again.
0:34:50 > 0:34:54Large bedroom there, lots of light flooding in, that's an ensuite.
0:34:54 > 0:34:56Again, lots of windows to double glaze
0:34:56 > 0:34:58because again, very noisy from that traffic.
0:34:58 > 0:35:02Down this little corridor, two little rooms there, a shower room.
0:35:02 > 0:35:06I mean, for a flat, holy schmoly, lots and lots of room.
0:35:09 > 0:35:11Now, so far so exciting.
0:35:11 > 0:35:14But there has been a partial renovation to this flat already.
0:35:14 > 0:35:17That ensuite and shower room
0:35:17 > 0:35:20and the kitchen look like they've been started.
0:35:20 > 0:35:23But as with any partial renovation, I'd always want to check out
0:35:23 > 0:35:27how well jobs like plumbing and wiring have been done.
0:35:29 > 0:35:32But back along the other wing, there's a nice surprise.
0:35:32 > 0:35:36Planning permission has already been granted to create double doors
0:35:36 > 0:35:40out of that back bedroom onto what would be a lovely balcony
0:35:40 > 0:35:42with a very present outlook.
0:35:44 > 0:35:48Outside to the rear of the building, you've got a private parking space,
0:35:48 > 0:35:51along with those belonging to the bank.
0:35:53 > 0:35:54And not only that,
0:35:54 > 0:35:58you've also got shared access to this sizeable communal garden.
0:35:59 > 0:36:02Obviously, when you buy any property, one of the most
0:36:02 > 0:36:06important things to check out is the legal status of that property.
0:36:06 > 0:36:08Is it freehold, is it leasehold?
0:36:08 > 0:36:11And if it is leasehold, what's the status of that lease?
0:36:11 > 0:36:14How many years has it got to run? Any issues, etc, etc.
0:36:14 > 0:36:16When it comes to flats,
0:36:16 > 0:36:19often that leasehold issue can be quite complicated.
0:36:19 > 0:36:23And in this case it certainly is, for various reasons.
0:36:23 > 0:36:26The upshot is that this flat would really
0:36:26 > 0:36:30only be suitable for an owner-occupier.
0:36:30 > 0:36:33And that could explain the low guide price.
0:36:33 > 0:36:37The flat was pitched at the guide price of £29,000 plus
0:36:37 > 0:36:41because complicated legal wrangling and expenses
0:36:41 > 0:36:45can send potential buyers running for the hills.
0:36:45 > 0:36:49These particular leasehold complications mean that this flat
0:36:49 > 0:36:53cannot be rented out, and reselling it could be restricted too.
0:36:53 > 0:36:57And the current lease runs for over 120 years.
0:36:57 > 0:37:01As it turns out, this duplex flat raised a lot of interest.
0:37:01 > 0:37:03Around 100 people came to view it.
0:37:03 > 0:37:07Consequently the auction house raised the price to £60,000
0:37:07 > 0:37:10so as not to mislead potential buyers.
0:37:10 > 0:37:12It has to be said that if somebody wants to buy it
0:37:12 > 0:37:15to live in in the long term, then there are no issues.
0:37:15 > 0:37:20But for the unwary and unprepared investor, this could be a minefield.
0:37:20 > 0:37:22What does a local estate agent think of this lot,
0:37:22 > 0:37:26guided on auction day at £60,000?
0:37:26 > 0:37:28Given the complexities within the legal pack,
0:37:28 > 0:37:33we thoroughly recommend prospective purchasers carefully examine
0:37:33 > 0:37:36the legal documentation and also have a good solicitor on board,
0:37:36 > 0:37:38just avoid any pitfalls in the future.
0:37:38 > 0:37:42Now, let's just, for talking's sake, imagine that there were
0:37:42 > 0:37:45no legal complexities attached to the property.
0:37:45 > 0:37:46If all things were normal,
0:37:46 > 0:37:51what hypothetically could be the sale value of the property?
0:37:51 > 0:37:53If this property were to be refurbished,
0:37:53 > 0:37:56maintaining some of its fantastic original features,
0:37:56 > 0:38:00and also utilising the planning permission for the balcony,
0:38:00 > 0:38:05I would be confident in putting this property on the market for £125,000.
0:38:05 > 0:38:09Buyers should be aware, of course, that due to the complexities
0:38:09 > 0:38:13within the legal pack, that value could be substantially reduced.
0:38:13 > 0:38:17But what would be the hypothetical rental value?
0:38:17 > 0:38:20If this property were to be let out,
0:38:20 > 0:38:22I would confidently place it on the rental market
0:38:22 > 0:38:25for £595 per calendar month.
0:38:25 > 0:38:30As things stand at the moment, this property could not be let out at all.
0:38:30 > 0:38:33Well, it is a spectacular flat.
0:38:33 > 0:38:37But obviously the legal issues would have put some people off.
0:38:37 > 0:38:41Let's find out what happened when it went under the hammer.
0:38:41 > 0:38:43We now move to Wem in Shropshire.
0:38:43 > 0:38:46The guide price on this has been amended to £60,000.
0:38:46 > 0:38:51It's a part-converted three-bed, two-bathroom duplex flat.
0:38:51 > 0:38:5440 can we say? 40 bid in the aisle.
0:38:54 > 0:38:56At £40,000.
0:38:56 > 0:38:5745 can we say now?
0:38:57 > 0:39:00£45,000. 50?
0:39:01 > 0:39:04£50,000. At 50,000, 55?
0:39:05 > 0:39:09£55,000. 60? £60,000.
0:39:09 > 0:39:11At 60,000. 65?
0:39:11 > 0:39:16No. At £60,000, the bid's in the aisle. At £60,000.
0:39:16 > 0:39:18I'll take one if it helps.
0:39:18 > 0:39:21New bidder, 61. 62.
0:39:21 > 0:39:2263.
0:39:22 > 0:39:2464.
0:39:24 > 0:39:2665. 66.
0:39:26 > 0:39:30No, at 66. 67 anywhere else?
0:39:31 > 0:39:34If not, £66,000 for the first time.
0:39:35 > 0:39:40£66,000 for the second time. The bid's here, no mistake.
0:39:40 > 0:39:42£66,000, third and final time.
0:39:44 > 0:39:45You bought it, well done.
0:39:45 > 0:39:48Well, despite nearly 100 people viewing the flat,
0:39:48 > 0:39:53in the end, the bidding was distilled to only a few contenders.
0:39:53 > 0:39:57The determined buyer of the difficult duplex got it for £66,000.
0:39:57 > 0:40:01Let's ask the buyer, known to all as Scoop,
0:40:01 > 0:40:03whether he thinks he got a scoop.
0:40:06 > 0:40:10- Scoop, great to meet you.- And yourself.- Am I OK to call you that?
0:40:10 > 0:40:15- Yes, certainly.- Tell me where Scoop comes from.- I drive diggers.- Right.
0:40:15 > 0:40:19- So that's a nickname, is it? - Yes, I seem to have got called it.
0:40:19 > 0:40:23- How long have you been Scoop for? - About 10 years.
0:40:23 > 0:40:27- OK, and is that what your friends call you, or...?- Yes, most of them.
0:40:27 > 0:40:30- Do they know your real name? - No, many don't.
0:40:30 > 0:40:33- What is it, just as a matter of interest?- It's Keith.
0:40:33 > 0:40:37Nice to meet you, Keith. So, tell me why you wanted to buy this place.
0:40:37 > 0:40:40I thought it would be a very good investment.
0:40:40 > 0:40:43And since buying it, I think I'll move in here myself.
0:40:43 > 0:40:45- It's going to be your home?- Yes.
0:40:45 > 0:40:47What did you think when you first saw it?
0:40:47 > 0:40:50I was just impressed with the size of the place.
0:40:50 > 0:40:53- It seems to go on and on, doesn't it?- Yes.
0:40:53 > 0:40:57How well do you know Wem, and where we are, particularly?
0:40:57 > 0:41:02I do live in the town. So I know the town very well.
0:41:02 > 0:41:05So have you passed this before, this building?
0:41:05 > 0:41:07- Yes, I bank with the bank below.- OK.
0:41:07 > 0:41:10You want to get some kind of shoot going down from here
0:41:10 > 0:41:14- so you can drop in deposits and things.- I am above the bank vault.
0:41:14 > 0:41:18You are?! Well, there's an interesting thought.
0:41:18 > 0:41:21# Every time it rains
0:41:21 > 0:41:25# It rains pennies from heaven... #
0:41:25 > 0:41:28Local knowledge is really useful when buying a property.
0:41:28 > 0:41:31And as Scoop frequents this location on a regular basis,
0:41:31 > 0:41:35he is well placed to know about things like the amenities
0:41:35 > 0:41:38and the reputation and popularity of the area.
0:41:38 > 0:41:41But I'm hoping Scoop has done a bit of digging
0:41:41 > 0:41:44when it comes to the real legal complications with the flat.
0:41:44 > 0:41:47What do you know about the contents of the legal pack?
0:41:47 > 0:41:50I'm familiar that you can't... I wouldn't be able to rent
0:41:50 > 0:41:55the building out. So that's obviously fine, I don't want to.
0:41:55 > 0:41:59- But you were aware of that before you bought it.- Yes.
0:41:59 > 0:42:03I often see that people don't read the legal pack, and yes, I did.
0:42:03 > 0:42:06I'm really glad Scoop did his homework here.
0:42:06 > 0:42:08He's clearly been listening when Lucy and I go on
0:42:08 > 0:42:10about reading the legal pack.
0:42:10 > 0:42:13But this is an example of how vital it is.
0:42:13 > 0:42:15An investor who hadn't done their homework here
0:42:15 > 0:42:18could have got themselves into a real nightmare.
0:42:18 > 0:42:21Instead, Scoop got himself a great new home.
0:42:21 > 0:42:24And he has a budget of £5,000 to spend on it.
0:42:24 > 0:42:26The first thing to tackle is the plumbing.
0:42:26 > 0:42:29At the moment, he doesn't have a working bathroom or kitchen,
0:42:29 > 0:42:32as the plumbing is there, but doesn't appear to be connected.
0:42:32 > 0:42:37However, this flat does have a bonus in terms of its outside space.
0:42:37 > 0:42:40So there's planning permission to put a door out onto a balcony.
0:42:40 > 0:42:42Is that something you're going to do?
0:42:42 > 0:42:46- Yes, I'd like to use the balcony. - So what about outside space?
0:42:46 > 0:42:50I've got parking and I've only recently found out about the garden.
0:42:50 > 0:42:55- What, after you bought it?- Yes. - Oh, right, bonus.- Yes, very happy.
0:42:55 > 0:42:58- Listen, congratulations. Good luck with it.- Thank you.
0:42:58 > 0:43:00Will look forward to seeing how you get on.
0:43:01 > 0:43:04Well, it seems that Scoop, the digger operator, has dug himself up
0:43:04 > 0:43:06a bit of a bargain with this place.
0:43:06 > 0:43:09And given that he plans to live here himself,
0:43:09 > 0:43:12some of the legal issues aren't too much of a problem.
0:43:12 > 0:43:17It will only be an issue if he comes to sell or rent the place out.
0:43:17 > 0:43:20But for now, well, he seems very happy, and quite right too.
0:43:20 > 0:43:23Find out how he gets on sorting it out later in the show.
0:43:26 > 0:43:29Well, it's been a while since we last saw those properties.
0:43:29 > 0:43:33- Have the new owners been busy bees, Lucy?- Or have they stopped dead.
0:43:33 > 0:43:35Let's go back and find out.
0:43:36 > 0:43:38We now head back to Kent and the village of Teynham,
0:43:38 > 0:43:42near Sittingbourne, where we first saw this former hairdressers
0:43:42 > 0:43:45that was tidy, clean and ready to go again.
0:43:45 > 0:43:47And being on a busy road, this place represented
0:43:47 > 0:43:51a great business opportunity that could be a cut above the rest.
0:43:51 > 0:43:55Married couple Sunil and Geeta also thought so
0:43:55 > 0:43:58and went ahead and bought it at auction for £35,000.
0:43:58 > 0:44:01Sunil has been on the show before
0:44:01 > 0:44:05when he bought and renovated this house in Stoke back in 2005.
0:44:05 > 0:44:07Since then, he's expanded his portfolio
0:44:07 > 0:44:10with several other residential properties.
0:44:10 > 0:44:14Now, he and Geeta are looking at the potential of commercial units.
0:44:14 > 0:44:17The big question is, what are you two going to do with this?
0:44:17 > 0:44:20Firstly, our plan is to rent out the shop.
0:44:20 > 0:44:23And then make planning application for a flat upstairs.
0:44:23 > 0:44:25If we can get an apartment upstairs, one bedroom,
0:44:25 > 0:44:29that would bring us an income upstairs as well as downstairs.
0:44:29 > 0:44:32- Fantastic. So you get two bites of the cherry.- Absolutely.
0:44:32 > 0:44:33Really clever idea.
0:44:33 > 0:44:37That is, of course, if they can get planning permission.
0:44:37 > 0:44:39They aim to spend £60,000
0:44:39 > 0:44:43and hopefully to do the project in four to six months.
0:44:43 > 0:44:47But when we returned eight months later, there was no new flat.
0:44:47 > 0:44:51However, the former hairdressers had undergone a restyle.
0:44:51 > 0:44:54It does still look like a place you'd go if you want to look
0:44:54 > 0:44:58well groomed, but they won't accept just any old dogsbody here.
0:44:58 > 0:45:00Well, actually, they will!
0:45:00 > 0:45:02# Who let the dogs out?
0:45:03 > 0:45:05# Who let the dogs out?
0:45:07 > 0:45:09# Who let the dogs out? #
0:45:10 > 0:45:14Yes, Sunil and Geeta have let the shop out to a pet grooming business.
0:45:14 > 0:45:17There's some canine caring going on.
0:45:17 > 0:45:21This new business is run by Katie and Kelly who have set up shop
0:45:21 > 0:45:24to cater to the pooch who likes to look good. Why?
0:45:24 > 0:45:26Because they're worth it!
0:45:26 > 0:45:28I think they've done a fantastic job.
0:45:28 > 0:45:33It doesn't look like the same place now as it was when we bought it.
0:45:33 > 0:45:37And they've just transformed it and turned it into a really nice,
0:45:37 > 0:45:39cosy little parlour.
0:45:39 > 0:45:42And it just feels like it's got a lot of warmth
0:45:42 > 0:45:46and it's just a friendly place to come if you're a little doggie.
0:45:47 > 0:45:52Hey, don't forget the cat customers, Geeta, you'll hurt their FELINES.
0:45:54 > 0:45:57But seriously, with this little business now set up,
0:45:57 > 0:46:00what happened to the plans for the flat above?
0:46:00 > 0:46:05The main reason we decided not to carry on with our initial plans
0:46:05 > 0:46:10was the cost of putting a flat up on top, plus the foundations, and
0:46:10 > 0:46:14the ability for access on the back is what we were originally planning.
0:46:14 > 0:46:18And when you put all that together, and the tenant situation
0:46:18 > 0:46:21when they came along, it was just easier to say, actually,
0:46:21 > 0:46:25other projects have come along and let's concentrate on those.
0:46:25 > 0:46:29Let this one carry on and allow them to have their dream as well.
0:46:29 > 0:46:32The tenants coming along and changing the plans
0:46:32 > 0:46:35could look like a case of the tail wagging the dog.
0:46:35 > 0:46:38But a flat upstairs is still a possible future project
0:46:38 > 0:46:40for Sunil and Geeta.
0:46:40 > 0:46:43And the location for this pet-pampering business is ideal,
0:46:43 > 0:46:45as Katie explains.
0:46:45 > 0:46:47We just thought it was a great proposition
0:46:47 > 0:46:50in that it's on the main road, it's on the high street,
0:46:50 > 0:46:53and we just thought there'd be a lot of passing trade
0:46:53 > 0:46:54we could get from being here.
0:46:54 > 0:46:59And for business partner Kelly, this pet project is a dream come true.
0:47:00 > 0:47:03It's just something I've always wanted to do.
0:47:03 > 0:47:05I've always loved animals, I've always had dogs
0:47:05 > 0:47:07and it's a bit of a dream come true, really.
0:47:07 > 0:47:09Going from working in London,
0:47:09 > 0:47:13working locally with animals is what I've always wanted to do.
0:47:13 > 0:47:17# I love my dog as much as I love you... #
0:47:17 > 0:47:22It also helps that they have a good relationship with Sunil and Geeta.
0:47:22 > 0:47:24Sunil's been a great landlord.
0:47:24 > 0:47:28Everything we've needed, he's been there and he's done it very promptly.
0:47:28 > 0:47:30So we couldn't ask for anybody better, could we?
0:47:30 > 0:47:32No, they're really good landlords.
0:47:32 > 0:47:34Business is about building relationships
0:47:34 > 0:47:36and good relationships.
0:47:36 > 0:47:40And I think that's what helps a business become sustainable
0:47:40 > 0:47:42and last a long time.
0:47:42 > 0:47:45It's the people that make it,
0:47:45 > 0:47:48and if we can help any landlords or tenants,
0:47:48 > 0:47:51then we're more than happy to do that.
0:47:52 > 0:47:56While Katie and Kelly finance the fitting of the grooming parlour,
0:47:56 > 0:48:00Sunil and Geeta had the old toilet retiled, adding a new boiler
0:48:00 > 0:48:03and installing a small kitchenette.
0:48:03 > 0:48:05That set them back £3,000.
0:48:05 > 0:48:08And with the purchase price of £35,000,
0:48:08 > 0:48:11the total outlay here is £38,000.
0:48:11 > 0:48:14So while this is a small addition to their portfolio,
0:48:14 > 0:48:18it's part of what Sunil sees as an important aspect of the business.
0:48:18 > 0:48:21It's lovely to be working together with your wife
0:48:21 > 0:48:24and building a future in what we do.
0:48:24 > 0:48:28And she's been very inspirational in driving and asking questions,
0:48:28 > 0:48:31"What's this? How are we going to do this?"
0:48:31 > 0:48:35And often, in business you need someone to bounce ideas off,
0:48:35 > 0:48:37and she's always been there.
0:48:37 > 0:48:41But did they choose the right business opportunity here?
0:48:41 > 0:48:44Time to find out the thoughts of two local estate agents,
0:48:44 > 0:48:48starting with the agent who saw this property earlier.
0:48:48 > 0:48:51It's turned into a very smart little premises,
0:48:51 > 0:48:53offering a nice-sized unit
0:48:53 > 0:48:56for this specialty business.
0:48:56 > 0:49:00And with such a busy thoroughfare outside, it gives the business
0:49:00 > 0:49:04the opportunity to access passing trade.
0:49:04 > 0:49:06What's been done is the right thing.
0:49:06 > 0:49:09It's been positioned in its marketplace correctly.
0:49:09 > 0:49:11It's very open, it's good for the customers
0:49:11 > 0:49:15because they can obviously see the staff working in here.
0:49:15 > 0:49:17So it probably gives them more confidence
0:49:17 > 0:49:19in terms of the way it's set.
0:49:19 > 0:49:24Sunil and Geeta spent £38,000 on the commercial unit,
0:49:24 > 0:49:27so what sort of returns do the agents think they could be getting?
0:49:27 > 0:49:30It's a great business opportunity
0:49:30 > 0:49:35because you'd likely achieve a rent of around £500 per calendar month.
0:49:35 > 0:49:38On that basis, I'd have expected the freehold value to be
0:49:38 > 0:49:41somewhere between £50,000 and £55,000.
0:49:41 > 0:49:45In terms of a local business, the resale value, in my opinion,
0:49:45 > 0:49:47would be around £50,000.
0:49:47 > 0:49:49Without a sitting tenant,
0:49:49 > 0:49:52the property would be worth around £45,000.
0:49:52 > 0:49:56So what did Geeta and Sunil make of the agents' opinions?
0:49:56 > 0:49:59I think the valuations are fairly spot-on,
0:49:59 > 0:50:03because we are achieving a rental of £485 per month.
0:50:03 > 0:50:09And... Which is around £5,800 a year.
0:50:09 > 0:50:14So on the property purchase price, we are very happy with that.
0:50:14 > 0:50:16As far as the flat upstairs is concerned,
0:50:16 > 0:50:20both agents felt this might be an over-investment in the property.
0:50:20 > 0:50:23Combine this with the fact that there are difficulties
0:50:23 > 0:50:27working out access, there will be a...PAWS on this plan.
0:50:27 > 0:50:31And for now, Sunil and Geeta are happy with the rental income,
0:50:31 > 0:50:36and maybe somewhere in the future, to get their own pets pampered.
0:50:36 > 0:50:37Absolutely.
0:50:37 > 0:50:42If we had pets, a dog or a cat, we would definitely bring it here.
0:50:42 > 0:50:46- All we've got is a tortoise, haven't we?- We've got a tortoise.
0:50:46 > 0:50:48But there's no tortoise parlours here.
0:50:50 > 0:50:54Well, moving rapidly on, we're now back in the Shropshire market town
0:50:54 > 0:50:57of Wem, where earlier, in this listed period building,
0:50:57 > 0:51:00we saw this three-bed duplex apartment
0:51:00 > 0:51:03that was awash with lots of light and space
0:51:03 > 0:51:07and most important of all real charm and character.
0:51:07 > 0:51:09Huge windows,
0:51:09 > 0:51:14and a sweeping staircase made this an attractive lot at auction.
0:51:14 > 0:51:17What wasn't quite so attractive were the legal complications
0:51:17 > 0:51:21around the leasehold, meaning this property had restrictions.
0:51:21 > 0:51:22It couldn't be rented out
0:51:22 > 0:51:26and therefore was really only suitable for owner-occupation.
0:51:26 > 0:51:28That's where Scoop came in,
0:51:28 > 0:51:31getting the apartment at auction for £66,000.
0:51:31 > 0:51:34So, tell me why you wanted to buy this place.
0:51:34 > 0:51:37I thought it would be a very good investment.
0:51:37 > 0:51:40And since buying it, I think I'll move in here myself.
0:51:40 > 0:51:41- It's going to be your home?- Yes.
0:51:41 > 0:51:44What did you think when you first saw it?
0:51:44 > 0:51:46I was just impressed with the size of the place.
0:51:46 > 0:51:49Scoop's moniker derives from his job,
0:51:49 > 0:51:53which is every boy's dream job, he drives a digger.
0:51:53 > 0:51:56His plan was to create a home for himself in six months.
0:51:56 > 0:51:59A budget of £5,000 seemed a reasonable sum,
0:51:59 > 0:52:04given that the property was in fairly reasonable decorative order.
0:52:04 > 0:52:07And seven months later, we returned to Wem.
0:52:09 > 0:52:13Straightaway, the entrance hall is as impressive as ever,
0:52:13 > 0:52:16with new carpeting leading up the grand staircase.
0:52:22 > 0:52:25Scoop hasn't quite finished renovating the property,
0:52:25 > 0:52:28but the main room has some personal touches added.
0:52:32 > 0:52:33And that kitchen?
0:52:33 > 0:52:35Well, as those units were in good order,
0:52:35 > 0:52:38Scoop had no need to change them.
0:52:38 > 0:52:41It's now fitted out with a cooker and fridge-freezer.
0:52:41 > 0:52:45But it's the beautiful Regency staircase which catches the eye.
0:52:45 > 0:52:48And it's the ceiling that really finishes it off.
0:52:48 > 0:52:51I've had a scaffold in and I put a new ceiling in
0:52:51 > 0:52:55and I've decided to put some modern downlighters in.
0:52:55 > 0:52:58The cornicing, I painted the flowers to make a feature of them.
0:53:01 > 0:53:04I've had it all plastered and painted the stairs,
0:53:04 > 0:53:06because unfortunately they were concrete,
0:53:06 > 0:53:08so I was unable to sand them.
0:53:08 > 0:53:14And I've put new carpets in and put brass stair rods in on the treads.
0:53:15 > 0:53:19Up here on the top floor, Scoop has made some real changes.
0:53:21 > 0:53:25The end room on the left has now become a family-sized shower room,
0:53:25 > 0:53:29while next door, the master bedroom is at present a tool storeroom
0:53:29 > 0:53:32which still needs to be finished off.
0:53:32 > 0:53:34The original ensuite is as before.
0:53:36 > 0:53:40Across the landing, the small end bedroom is also ready.
0:53:40 > 0:53:43Originally, the apartment wasn't in too bad a state,
0:53:43 > 0:53:47but Scoop wanted to make sure that everything would meet his standards.
0:53:47 > 0:53:52It's been seven months. I've had the place replastered, rewired.
0:53:52 > 0:53:57I've got water connected to the property now, fixed the drains
0:53:57 > 0:54:00and built a new bathroom and a balcony.
0:54:00 > 0:54:02Yep, that's right, a balcony.
0:54:02 > 0:54:04Because in the last room on the tour,
0:54:04 > 0:54:06Scoop has added these French doors
0:54:06 > 0:54:09that lead out onto the huge roof terrace,
0:54:09 > 0:54:11laid end to end with decking,
0:54:11 > 0:54:13with railings still to be fitted.
0:54:13 > 0:54:16Being a listed building, permission was required
0:54:16 > 0:54:18and granted for the new French doors.
0:54:18 > 0:54:22It's easy to imagine Scoop relaxing up here and taking in the views.
0:54:22 > 0:54:26Though it sounds like he's already familiar with the shared garden.
0:54:26 > 0:54:30I've enjoyed having a garden and having barbecues and friends round.
0:54:30 > 0:54:31It hasn't helped my progress.
0:54:33 > 0:54:35With the apartment in good condition,
0:54:35 > 0:54:37there were no real issues to contend with,
0:54:37 > 0:54:40although over the warm summer months, the freshly laid plaster
0:54:40 > 0:54:45did dry out and crack, which meant reskimming it several times over.
0:54:45 > 0:54:49One other challenge Scoop faced was selecting the right materials.
0:54:50 > 0:54:54It was difficult trying to find French doors that fit
0:54:54 > 0:54:58and trying to choose what bathroom suite and tiles to have.
0:54:58 > 0:55:00There's too much choice out there.
0:55:02 > 0:55:05There is a lot of character in here.
0:55:05 > 0:55:10From the beautiful, high sash windows to the splendid cornicing.
0:55:10 > 0:55:13Scoop is well on the way to having a beautiful home.
0:55:13 > 0:55:16Calling in tradesmen for the plastering,
0:55:16 > 0:55:19plumbing and electrical work, Scoop was on site most days
0:55:19 > 0:55:23and got on with 90% of the renovation work himself.
0:55:23 > 0:55:27He's planning to move in once everything is complete.
0:55:27 > 0:55:31I've got the radiators to go back on the wall, fix the railings
0:55:31 > 0:55:36on the balcony, and these floors to have a final sand and an oiling.
0:55:36 > 0:55:39But with that new shower room, the impressive roof terrace
0:55:39 > 0:55:42and the entire apartment replastered and rewired,
0:55:42 > 0:55:46did Scoop have to splash more cash than he intended?
0:55:46 > 0:55:51No, my original budget was £5,000 and I've spent £6,100.
0:55:53 > 0:55:56It means that added to his purchase price of £66,000,
0:55:56 > 0:55:59Scoop's total outlay here is £72,100.
0:56:01 > 0:56:04Time to find out what two local property experts think
0:56:04 > 0:56:06of Scoop's renovation work.
0:56:06 > 0:56:08And we start off with the estate agent
0:56:08 > 0:56:10who first saw the property earlier.
0:56:12 > 0:56:14With the renovation so far, I'm impressed.
0:56:14 > 0:56:16It's been cleaned up, freshened up,
0:56:16 > 0:56:19decorated nicely and it's almost ready to be lived in.
0:56:19 > 0:56:20I think it's lovely.
0:56:20 > 0:56:24He's done a very good job of it, very nice, light and spacious.
0:56:24 > 0:56:29I like the high ceilings, the period features which have been retained.
0:56:29 > 0:56:33I really like the fact that the traditional features have been left.
0:56:33 > 0:56:36And I also really like the balcony.
0:56:36 > 0:56:40Scoop is planning to move in and make this his home.
0:56:40 > 0:56:43As he has spent £72,100 on the apartment,
0:56:43 > 0:56:46what sort of resale figure could he get
0:56:46 > 0:56:50if he changed his mind and decided to sell?
0:56:50 > 0:56:53If the property was mortgageable, open to mortgage buyers,
0:56:53 > 0:56:58first-time buyers perhaps, I'd have it on the market at £135,000.
0:56:58 > 0:57:02In this current sales market, I would recommend an asking price
0:57:02 > 0:57:07of around £160,000 in order to achieve £150,000.
0:57:07 > 0:57:12Well, that could be a possible profit of £78,000.
0:57:12 > 0:57:15Although the current restrictions meaning anyone buying the flat
0:57:15 > 0:57:18couldn't rent it out could affect the sale price.
0:57:18 > 0:57:21But what does Scoop think of the valuation?
0:57:21 > 0:57:24Oh, that would be very nice.
0:57:24 > 0:57:26But I'm not looking to sell, so...
0:57:26 > 0:57:28But it's nice to know.
0:57:28 > 0:57:31And if a resolution could be found to those rental restrictions,
0:57:31 > 0:57:34then the agents reckon the duplex could fetch
0:57:34 > 0:57:38between £595 and £650 per calendar month,
0:57:38 > 0:57:41which would give Scoop a very healthy rental yield
0:57:41 > 0:57:44of between 10% and 11%.
0:57:44 > 0:57:46Meanwhile, he's got himself a lovely home.
0:57:46 > 0:57:49But will he be back on the property trail soon?
0:57:51 > 0:57:53Yes, I would do an auction route again.
0:57:53 > 0:57:55It's been very enjoyable,
0:57:55 > 0:58:00but I would also recommend always buy a property next to a hardware shop.
0:58:02 > 0:58:05Join us next time for more auction action.
0:58:05 > 0:58:06Yes, will it go well or badly?
0:58:06 > 0:58:09Will you be jealous or relieved you didn't bother?
0:58:09 > 0:58:12- You can find out on the Homes Under The Hammer.- Goodbye.- Goodbye.