Episode 6 Homes Under the Hammer


Episode 6

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Transcript


LineFromTo

Hello, welcome to the show.

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Now, buying a property, be it a home or an investment,

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could possibly be the most expensive thing you ever buy.

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So, with thousands of pounds involved,

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you really should try and get the best value for money.

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Where can you do that?

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Well, maybe by heading down to your local auction.

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Congleton in Cheshire has a strange link with

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a very unexpected animal, the bear.

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Unfortunately, though, this isn't a cuddly bear story.

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Nowadays, bear baiting in the UK would be unthinkable.

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But this blood sport once brought in huge crowds.

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Congleton became notorious in the 1620s, when money saved to

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buy a Bible for the town was used instead to buy a bigger bear.

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Hence its peculiar nickname, "Beartown".

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There are still a few bears in town, but thankfully, better treated.

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# I want to give you a bear hug. #

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Well, being only 30 minutes from Manchester by train,

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a lot of people move to Congleton for the quieter life.

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Well, if that is what you are looking for,

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the property I am here to see really won't suit. This is it.

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Two bedrooms, £40,000 was the guide price.

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But before we go in, I've got to show you this. The reason it's SO

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bad if you're looking for peace and quiet, is because not only is

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it on a main road, it's right by these traffic lights.

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So you don't get the constant vroom-vroom of the cars,

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and the lorries and whatever else, you get them stopping at the

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lights and starting their engines up and... Argh! Nightmare.

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OK. That's the bad bit.

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Let's find out what it's got to offer.

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Ooh...

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HE SNORTS

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That's not ideal, is it?

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Um... Yeah, the electric cupboard, just there, behind the door.

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To a point that you've... Well, no, not ideal.

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So, after that slightly startling start, what have we got?

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Lots of stuff on the walls, that's for sure.

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But, a little corridor, front living room there.

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It's not a bad-sized space,

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and certainly lots of character, with those beamy things going on.

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Another beam here for... Watch your head on that.

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Through to a rear sitting room, there's lots of wood going on.

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Um...

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Hmmm.

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-I say "wood"...

-HE CHUCKLES

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Closer inspection... That isn't, is it?

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That's some kind of concrete-y, fibreglass-y, plaster-y faux wood.

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The sort of thing you have in theme parks,

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when it looks like boulders and stuff.

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But somebody's gone to a lot of trouble to put it on. Hmmm.

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Anyway, through there to this area here, this is the kitchen,

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through to the bathroom.

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I mean, for 40,000 quid, I know it's got a few quirky

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things about it, but it's not a bad house, is it?

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Well, top of the stairs and a real safety issue,

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a potential disaster waiting to happen, here.

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Because look what you've got.

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Fair enough, top of the stairs,

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bit of a landing area, going into that bedroom.

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But nothing here apart from this tiny little area here,

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when you come out of this bedroom here.

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So the danger of basically stepping off there

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and falling down the stairs is huge.

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Aside from that issue, there are two good-sized bedrooms up here.

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But shiver me timbers, more of those beams.

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The rooms are nice and bright,

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but I think I would want to get rid of these leaded windows and get

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some double, maybe even triple glazing,

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to keep the noise out.

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The floor definitely has a slope, so a structural survey is a must.

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Let us head outside to see

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if that's on the straight, but hopefully not narrow.

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Well, if you're looking for a house with lots of outside space,

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you need to look somewhere else, because literally, all you have got

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is that little bit of courtyard.

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That bit there actually belongs to the next-door neighbours.

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Now, it's not ideal, but I'm trying to find a plus point here...

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If you were looking to rent this place out, tenants generally

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don't like large gardens, something they have to look after, at least.

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So what you've got here is space for your bins,

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maybe somewhere you can put your bikes. So that's a positive.

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# Cos I'm Mr Brightside. #

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Perhaps a local estate agent might like to borrow my rose-tinted spectacles.

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What does he reckon about this property, guided at £40,000?

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You're probably looking to achieve somewhere in the region

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between £75-£80,000.

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If the property was placed on the rental market, I would expect to

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achieve somewhere in the region of £400-£450 per calendar month.

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Well, it's certainly a house with lots of character.

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Some would call it quirky.

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Not an ideal location, but remember that guide price, £40,000.

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I actually think it's a really good one to go for.

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

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It's a two-bedroomed, end-terraced house.

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I have a proxy bid on this of £28,000.

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So bid with me at £28,000.

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30 in the room. £30,000 in the room. At £30,000. 31 with me. 32.

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33 with me. 34. At 34, I am out.

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At £34,000. 34,500, 35, 35.

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Another 500?

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No? At 35,000, right in the middle, at £35,000.

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Right at the back now, 35,500.

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36. 36. 36,500.

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37. No? At 36,500 now, by the light, £36,500.

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37 anywhere else?

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If not, 36,500 once, 36,500 twice,

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third and final time, 36,500...

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-GAVEL BANGS

-Your house, well done.

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Julia made that successful bid of £36,500.

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That's £3,500 below the guide price.

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Julia and her husband Mike are relative novices

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when it comes to property development,

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with two previous developments their only experience.

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However, they're keen to get going with their latest purchase,

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and I met full-time mum, Julia, back at the property

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to find out their plans.

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-Julia, great to meet you.

-And you.

-Congratulations!

-Thank you.

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-What an interesting little place this is.

-Mmm.

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Tell me why you wanted to buy it.

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Mainly the price.

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It was the right price.

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And I know this area a little bit,

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so I knew that the price was a good price for this area, really.

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What are you planning to do to it?

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Most things really, it needs the damp sorting out.

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It needs replastering, it needs rewiring,

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it's got no central heating, new windows.

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-And kitchen...

-Kitchen, bathroom, yeah, yeah.

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All that needs ripping out and starting again.

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Julia's certainly made a great assessment of the tasks ahead,

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and I'm delighted to say, has in her sights one of the main

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difficulties I can see about the house.

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That staircase.

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I'll need to get somebody in and have a look.

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But if we can try and rearrange it, maybe bring it further out this

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way, so that we can get a proper landing at the top.

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-And what about all of this...wood, whatever it is?

-Yeah.

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It needs to go, really, doesn't it?

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Well...somebody's gone to such a lot of trouble to put it in.

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-It's a shame to say, "Yes", but...yes!

-It does, it needs to go.

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-I think it takes up a lot of space, as well.

-Yeah.

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Get rid of that, open it up a bit.

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The one big negative, if there are any, is the location.

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Good and bad, good in terms of what it's close to,

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-but right on this junction, you can hear the traffic, it's...

-Yeah.

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-This isn't even peak time, is it?

-No.

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-Can't do anything about that though, apart from put in triple glazing.

-New windows, yeah.

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I think we'll try and do the best we can with the windows.

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And, like you say, other than that... I think, you know,

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I've lived on a busy road, and you get used to it.

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So I think, as a rental property,

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I don't think that will be too much of an issue.

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-And that's the plan, is it? To rent it out?

-Yes. Yeah, it is.

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Well, before Julia can look for any renters,

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she's got a long list of pretty big jobs to get done.

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Although she does have a fairly healthy budget of around £23,000,

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and a timescale of three to four months to get this dated

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and wonky house ready for the rental market.

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So, how involved are you going to be with it?

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I will be here most days, to make sure that everything's going

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-according to plan.

-Telling other people what to do?

-Exactly.

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-HE LAUGHS

-Yes.

-Well, congratulations.

-Thank you.

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-I look forward to seeing how you get on.

-Thank you, very much.

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So it looks like the fake wood is destined to go, in Julia's

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renovation of this little property in Congleton.

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It's one of those ones that is going to be dramatically

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different when we return.

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Can't wait to see what it looks like.

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You can find out, later in the show.

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And talking of dramatically different,

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it's hard to believe that Willesden, here in north London,

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was once a rural village with a population of less than 20,000.

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In the late 1800s, the population grew to 140,000

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in just 25 years, thanks to the arrival of the railway.

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# Guess I will spend my life in railway stations. #

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The property I'm here to see today is part of these Victorian terraces,

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probably built around the time of the railway station.

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Well, it's in here, it's on the first floor, it's a one-bedder

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and it has a guide price of £260,000-plus.

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Let's see what those good old Victorians built.

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First things first, in through the front door

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and a flight of stairs to negotiate.

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Now, I'm not going to let that put me off, although the decor might.

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So a lot in this flat needs doing.

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But only decoration and carpets and painting,

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lots of egg-yolk yellows everywhere, and oranges.

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Bathroom and through to the backroom,

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painted in a very interesting sorbet tangerine colour.

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But this is what I can't believe.

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Look how close you are to the tube station! Look!

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They literally are in your back garden.

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Now, let's do a sound test.

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FAINT SOUND OF TUBE TRAIN

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(Doesn't make that much difference!)

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So, could it be a positive, could it be a negative? I'm not quite sure.

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It depends how quickly you need to get into town.

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# If it makes you happy

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# It can't be that bad. #

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It's almost like this flat has got a pulse.

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Because, when the trains go, the flat just slightly moves.

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You've got the kitchen just here, which is a great size.

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There's a table in there, so you can sit down and eat,

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and through here, well, this is the front of the property.

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This is currently laid out as the bedroom.

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Now, I am thinking it would be served so much better

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as a living room, a cosy lounge...

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Why do you think this is the bedroom?

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Do you think it's too noisy at the back?

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If you slept at the back, you could hear the trains? What do you think?

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I don't know, I'm going to leave that one with you.

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But I think if this were mine, actually, I might swap it over.

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Let's see what a local estate agent makes of this flat,

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guided at 260,000.

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-# People all over the world

-Everybody

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-#

-Join hands

-Love train

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# Start a love train, love train. #

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So, if you were to keep this property laid out as it is,

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but in good condition,

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you'd be looking at around £350,000 for sales and you'd be looking

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at around £1,300 per calendar month for the lettings market.

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If you were to convert this into a two-bedroom property, it'd be

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two double bedrooms, and you'd be looking at £400,000 for sales.

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And you'd be looking at around £1,500 per calendar month

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for the lettings market.

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Well, this little flat over a few levels certainly has character

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and lots of exciting options.

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You could do a simple refurb, or you could think about

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a complete overhaul. But is it too near to that train station?

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Or will people absolutely love that?

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Let's see what happens when this property went under the hammer.

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A one-bed, first-floor flat.

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250. Thank you, 250.

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255 anywhere?

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We've got 250, standing up at the back. Anyone else?

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It is with you... Ah. 255, thought you had it. 260.

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'Bidding started a little sluggish,

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'but it soon became a nerve-jangling battle.

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'We rejoin the bidding at 275,000.'

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275.

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276, 277, 278, 279, 280, 281,

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282, 283, 284, 285,

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286... It might be...? One more go, yeah?

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286, 287?

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287, 288, 289, 290...

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Must go one... 290... They are struggling a bit.

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290, well done. 291.

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291? 291.

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Daren't ask him now! 292, right, I got two!

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291, have a think.

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292, elsewhere?

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Got 291 standing up.

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First time, second time, third and last time, if you're all done...

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Sold, 291.

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Raj was the successful bidder.

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He and his business partner finally purchasing the property for 291,000.

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And he's definitely in the know when it comes to property.

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Not only is Raj local, he has another ace up his sleeve.

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I met him to find out how he knows all the right steps.

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# He's Mr Know-It-All... #

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-Raj, congratulations.

-Thank you very much indeed.

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-So, here you have a one-bedroom flat...

-That's right. That's right.

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-..with a tube station...

-Mm-hmm.

-..right there. I mean, is that handy?

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Is that going to put buyers off? What do you think?

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I think... It may put some buyers off

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but the real charm of this property

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is actually the location of the station.

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It's about ten minutes into central London to get to Bond Street

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and about 15-20 minutes into Canary Wharf, so that is actually

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one of the charms and the reason we actually chose this location.

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So, tell me, what is your knowledge of property?

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Well, by profession I am actually a property solicitor

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and that's what actually inspired me

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to actually try a bit of dab hand at property developing.

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I used to see a lot of clients make a bob or two on the property game

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after lots of hard work and perseverance.

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-I got my first property about four or five years ago...

-OK.

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..and I've done a few projects myself and this one is together with

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my business partner and I've done a handful with him as well.

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So, what advantage do you have over somebody else

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that may just go to a property auction?

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I think I knew the legalities of it.

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I know, on your show, Martin and yourself are always telling people to look at the legal packs,

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so whenever the legal packs are there for any property

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myself or my business partner are interested in,

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I scrutinise it with a fine tooth comb,

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make sure there's no sort of hidden extras or hidden muckies

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or special conditions which could be overly onerous.

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# We laid down the law

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# So what you need me for...? #

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See, it's not just Martin and I that swear by the legal pack

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and Raj is ready to rewrite the laws of this flat's layout.

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So, what we're looking to do is we're looking to reconfigure the property.

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At the moment, it's a one-bedroom

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so what we are going to be doing is taking the wall down

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between the current bedroom and the actual kitchen

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and relocating the kitchen into an open-plan area,

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and the front bedroom will actually become the open-plan living area

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with the kitchen combined.

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So, you're looking at creating a lounge/kitchen area, one space?

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-That's right.

-And making that tiny little bit left over...

-Yes.

-..a bedroom?

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-It can work. It has worked on previous projects...

-Oh, Raj!

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It can actually work!

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That's going to be a shoebox but I know we're in London

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and we are literally a stone's throw from the tube

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but that is going to be a very small room.

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In all honesty, now, come on, this is your game,

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how much value can you add by doing that?

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We would hope a little bit.

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We've spoken to a few agents and knowing from some of the projects

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we've done in the past as well, you are right, we are in London.

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Even that small second bedroom where you can just about squeeze that second bedroom in,

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it does actually make it worth doing.

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Could Raj be right?

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His tangerine dream might give you nightmares if you live anywhere else.

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London? He knows his stuff.

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He's given himself two and a half months to sort this flat out.

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-So, come on, how much are you going to spend here?

-We've got a budget of £15-20,000.

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I think from previous experience that's a fair estimate

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but obviously we always have a contingency.

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-You never know if something...you know...some uglies may crop...

-Oh, you're so sensible.

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HE LAUGHS If there's any man that's going to do it right, it's going to be you!

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-Check this, Raj.

-I really hope so, Lucy.

0:18:000:18:02

Are you that strict? Are you that stringent with everything you do?

0:18:020:18:05

It's got to be by the book?

0:18:050:18:07

I think sometimes but sometimes I get lazy.

0:18:070:18:09

I know there can be delays and sometimes builders don't turn up.

0:18:090:18:12

Sometimes materials are not available

0:18:120:18:13

-and sometimes I can't be bothered to get out of bed as well!

-And I bet that bugs you like crazy

0:18:130:18:17

-because I know that you like everything just so.

-Yeah.

0:18:170:18:20

Well, I just hope you do end up making a bob or two.

0:18:200:18:22

-Thank you very much indeed.

-Cos that's what it's all about for you.

-Absolutely.

-Well done.

0:18:220:18:26

-Congratulations.

-Thank you very much.

-Thank you so much.

0:18:260:18:29

So, property solicitor turned property developer Raj

0:18:300:18:33

has his latest property for his portfolio,

0:18:330:18:36

and if it all goes to plan,

0:18:360:18:38

then he is potentially looking at a nice tidy profit.

0:18:380:18:42

But, does he really think bedroom number two is worthwhile?

0:18:420:18:46

Taking that wall down, is it really going to add that much value?

0:18:460:18:50

You can find out if Raj does make his bob or two

0:18:510:18:54

later on in the programme.

0:18:540:18:55

There's big plans to sort out this ambulance station's ills.

0:18:570:19:01

There's going to be an extension

0:19:010:19:03

and eventually then be a swimming pool out on the site.

0:19:030:19:06

And has our property solicitor caught the development bug?

0:19:090:19:12

We'll definitely be hitting the auction room again.

0:19:120:19:15

Hope to buy sooner rather than later.

0:19:150:19:17

Time to return now to our two-bedroom end-terraced house

0:19:200:19:24

with a guide price of £40,000,

0:19:240:19:27

situated in the Cheshire town of Congleton.

0:19:270:19:29

# Do, do, do, come on and do the conga

0:19:310:19:34

# Do, do, do, it's conga night for sure... #

0:19:340:19:38

No, no, no, no. Congle-TON.

0:19:380:19:42

Oh, never mind.

0:19:420:19:43

It was a lot of house on offer for a guide price of 40,000.

0:19:450:19:49

And it was even better value for Julia, the successful bidder,

0:19:520:19:55

as she paid just £36,500 at the auction.

0:19:550:20:00

She was looking to let out the property and knew what needed doing.

0:20:000:20:03

Six months have passed and we've returned to Congleton to see if

0:20:070:20:11

Julia's managed to turn this house from fake wood into really good.

0:20:110:20:16

# All the boys and the girls

0:20:190:20:21

# They got it going on

0:20:210:20:23

# And when the beat kicks in

0:20:230:20:25

# You feel it in your bones

0:20:250:20:27

# And when the basement cracks

0:20:270:20:29

# And the needle drops

0:20:290:20:31

# You can't turn back

0:20:310:20:32

# And you just can't stop

0:20:320:20:34

# All the boys and the girls... #

0:20:340:20:37

I think we can safely say,

0:20:380:20:40

Julia's dragged this oddity back into the 21st century.

0:20:400:20:44

With new windows throughout, that traffic noise is much more tolerable

0:20:440:20:48

and those stairs aren't scaring me any more which is always nice.

0:20:480:20:53

Julia's even put some wood back in.

0:20:530:20:55

Real this time.

0:20:550:20:57

The main things that we've changed since you were here last

0:20:570:21:01

is the windows were replaced.

0:21:010:21:02

We've taken most of the walls back to brickwork

0:21:020:21:05

and re-plastered, rewired. Erm...

0:21:050:21:09

New kitchen, new bathroom, new floors upstairs, new flat roof.

0:21:090:21:13

Most things that could be done have been done.

0:21:140:21:16

And the house looks all the better for it.

0:21:180:21:20

It's not just been a redecoration either.

0:21:200:21:23

Julia's also reconfigured some of the rooms

0:21:230:21:25

to make better use of the space.

0:21:250:21:27

OK, so this originally was the dining area.

0:21:300:21:33

It had quite a large fireplace in the corner which we removed

0:21:330:21:37

which has opened it up nicely and given us quite a bit more space.

0:21:370:21:41

So, we decided to put the kitchen mainly in this bit.

0:21:410:21:44

Previously it was just in the far side which just wasn't enough

0:21:440:21:46

space to get everything in, really.

0:21:460:21:48

So it's a nice light, airy space which we are really pleased with.

0:21:480:21:52

The house looks so much more spacious

0:21:520:21:54

but it's not just cosmetic changes Julia's made.

0:21:540:21:57

Along with new windows and a new flat roof,

0:21:570:22:00

there was a sloping floor upstairs that needed sorting.

0:22:000:22:03

OK, so in here, originally the floor was quite sloping

0:22:060:22:10

so we pulled up the floorboards

0:22:100:22:12

and realised that the floor throughout upstairs

0:22:120:22:14

was needing to be replaced cos the joists were quite rotten.

0:22:140:22:17

So we've done that and that's sorted the problem out.

0:22:170:22:20

We also changed the position of the door

0:22:200:22:22

because originally the door was going out onto the staircase,

0:22:220:22:25

which wasn't very safe,

0:22:250:22:26

so we made a little landing by using some of the space

0:22:260:22:29

from the main bedroom, which has worked a lot better,

0:22:290:22:32

so that's great.

0:22:320:22:35

No more wonky floor and dangerous staircase, just two solid bedrooms.

0:22:350:22:39

But building work can be expensive,

0:22:390:22:41

so I wonder how that ate into Julia's budget.

0:22:410:22:45

She bought the property for £36,500 and had a budget of 23,000.

0:22:450:22:50

How did she get on?

0:22:500:22:51

It's safe to say that we've totally gone over that with everything.

0:22:530:22:56

All the estimations were under, really.

0:22:560:23:00

So we've probably come in at about 40,000 all-in.

0:23:000:23:05

Ouch. That's almost double her original budget.

0:23:060:23:09

Those jobs clearly needed doing

0:23:090:23:11

but will Julia be able to get her money back?

0:23:110:23:14

We've asked along two local property experts to get their opinion.

0:23:140:23:17

If I was to place this property on to the resale market

0:23:190:23:22

I would anticipate

0:23:220:23:23

to achieve a price somewhere in the region of £80,000 - £85,000.

0:23:230:23:27

In my opinion, I would value this property at a figure

0:23:270:23:30

of between £80,000 and £85,000.

0:23:300:23:32

That top valuation would give Julia a potential profit

0:23:330:23:36

of £8,500 before taxes and fees,

0:23:360:23:39

but Julia always intended to rent, so how do those figures stack up?

0:23:390:23:44

If I was to place this property on to the rental market,

0:23:450:23:47

I would hope to achieve somewhere in the region

0:23:470:23:49

of £400 - £450 per calendar month.

0:23:490:23:52

The rental market is particularly strong in this area.

0:23:520:23:55

I would expect this to achieve a figure of £425 per calendar month.

0:23:550:23:59

I think that's fine, yeah.

0:23:590:24:01

I suppose 425 was the figure that I was thinking of

0:24:010:24:04

so we're about there, aren't we? So that's fine, yeah.

0:24:040:24:07

Yes, we certainly are there.

0:24:080:24:10

That would give her just over 6.5% yield.

0:24:100:24:13

Pretty good, even though for Julia it's not all about the money.

0:24:130:24:17

I enjoy buying houses that are run-down

0:24:190:24:21

and seeing the potential in them

0:24:210:24:23

and then seeing them turned round and improved.

0:24:230:24:25

So definitely pleased that I went to the auction and definitely pleased

0:24:250:24:28

that I was the one that got this house. So, yeah.

0:24:280:24:31

I'm in West Glamorgan in the beautiful Welsh Valleys.

0:24:400:24:44

Over one million pounds has been spent on cycleways and paths

0:24:440:24:48

to open up this region to the tourist trade.

0:24:480:24:51

It's hoped that tourism will revive the fortunes of places

0:24:510:24:55

like the village of Cymmer, where unemployment rates are quite high

0:24:550:24:58

and where local industries are few.

0:24:580:25:00

Well, today I'm here to see something a little bit unusual.

0:25:020:25:05

It's not a shop, it's not a garage, it's not a commercial premises

0:25:050:25:09

or a delivery depot.

0:25:090:25:11

It's actually this. Can you guess what it is?

0:25:110:25:14

This little curiosity used to be the garage for the local ambulances.

0:25:150:25:19

It's seen better days with its boarded-up frontage

0:25:190:25:22

and broken windows.

0:25:220:25:24

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

0:25:240:25:27

I think it's worth having a look inside.

0:25:270:25:29

Well, the main part of the building, not surprisingly, is this area here,

0:25:320:25:36

which is, I imagine, where the ambulances were actually stored.

0:25:360:25:41

And a good space.

0:25:410:25:43

Big, solid floor and you've got these large sliding doors,

0:25:430:25:47

which open up the whole of the front,

0:25:470:25:50

which straight away makes me think great potential for somebody who

0:25:500:25:53

needs that kind of access, such as maybe a builder's store

0:25:530:25:57

or a garage or an MOT centre that really needs to be able

0:25:570:26:00

to get in and out very easily.

0:26:000:26:02

Yeah. Good start.

0:26:020:26:05

Let's see what else there is.

0:26:050:26:06

Taking the stairs up to the first floor,

0:26:060:26:09

everything feels very institutional but it's solid enough.

0:26:090:26:12

Well, up here, bit of a disappointment

0:26:140:26:16

cos the space is only about half

0:26:160:26:17

what it is downstairs, primarily this little office area here,

0:26:170:26:21

little kitchen and a washing area, shower, toilet etc, there.

0:26:210:26:25

But maybe there's more.

0:26:250:26:27

Of course there's more.

0:26:290:26:31

Quite a bit more in the form of this land at the side of the building.

0:26:310:26:35

"Ideal for developing," I hear you cry!

0:26:350:26:37

Well...not quite.

0:26:370:26:41

When it comes to the planning classification of this building,

0:26:410:26:43

it's actually called "sui generis", which is Latin for,

0:26:430:26:47

"of its own kind" or "unique".

0:26:470:26:49

In other words, it's only got planning to be exactly what it is,

0:26:490:26:52

which is an ambulance station.

0:26:520:26:54

# Mr Blue Sky

0:26:540:26:55

# Please tell us why

0:26:550:26:57

-# You had to hide away for so long

-So long

0:26:570:27:01

# Where did we go wrong? #

0:27:010:27:03

It has a guide of just £10,000 but I think it's going to take

0:27:030:27:07

some blue sky thinking to really make the most of this place.

0:27:070:27:10

We asked the agent from the auction house which sold it

0:27:100:27:13

whether or not there was any chance of turning this into an investment.

0:27:130:27:17

I think a local builder or mechanic or somebody looking to store

0:27:170:27:22

materials would probably pay £150 - £200 per calendar month.

0:27:220:27:27

Well, at first glance an interesting opportunity, this one,

0:27:290:27:32

but once you delve a little bit deeper,

0:27:320:27:34

the options do seem to be a little bit limited.

0:27:340:27:36

I don't think it's financially viable to knock it down and build something in its place

0:27:360:27:40

but if the right person needed this kind of space,

0:27:400:27:43

well, it could be absolutely spot-on for them.

0:27:430:27:47

Let's find out who it was who decided to resuscitate

0:27:470:27:50

this old ambulance station by going to the auction.

0:27:500:27:53

This is on behalf of the Welsh Ambulance Services Trust.

0:27:540:27:57

I've got a proxy bid here, ladies and gentlemen.

0:27:570:27:59

I'm going to go straight in at the reserve at 12,500.

0:27:590:28:01

12,500 is bid. Any advance?

0:28:010:28:04

13, thank you. 13,000 is bid. Proxy's out. 13,500.

0:28:040:28:08

13,500. 14, 14,500,

0:28:080:28:11

14,500, 15, 15,500,

0:28:110:28:13

16, 16,500,

0:28:130:28:15

17, 17... Right, 17 is on you, sir. At 17,000.

0:28:150:28:19

17,000 is bid. Any advance?

0:28:190:28:23

17,500, 18, 18,500,

0:28:230:28:25

19, 19,500, 20.

0:28:250:28:28

20. 20,000 is bid.

0:28:280:28:29

20,500, 21,

0:28:290:28:31

21,500. 21,500 seated here.

0:28:310:28:35

21,500 is bid.

0:28:350:28:37

21,500. Any advance on 21,500?

0:28:370:28:40

22, thank you. 22... Half.

0:28:400:28:43

22,500. Looking for 23, sir. I've got 22,500. 22,500 it is then.

0:28:430:28:47

I'm going to sell it at 22,500 if I don't see anyone quickly.

0:28:470:28:50

22,500, be quick! 22,500...

0:28:500:28:54

-GAVEL BANGS

-Yours, sir, 22,500.

0:28:540:28:56

The cheerful bidder delighted

0:28:560:28:58

at getting the former ambulance hall for £22,500 was Peter.

0:28:580:29:03

Occupational health nurse Peter was at the auction with his son, Simon.

0:29:050:29:10

We caught up with them to hear what made them

0:29:100:29:12

so excited about this particular property.

0:29:120:29:16

Peter, Simon, lovely to meet you both. Congratulations.

0:29:160:29:19

Tell me why you wanted to buy this place.

0:29:190:29:21

Basically I want to turn it into a holiday let

0:29:210:29:24

for the disabled downstairs and enabled people upstairs.

0:29:240:29:29

So a holiday let for disabled children or disabled of all ages?

0:29:290:29:34

-Anyone that needs it.

-Oh, wow.

0:29:340:29:36

So, why do you want to do that particularly?

0:29:360:29:39

Well, I'm a nurse so I obviously work

0:29:390:29:45

with all sorts of people and it's got a...

0:29:450:29:50

I feel there's a need for accommodation

0:29:500:29:53

with disabled in mind in the area.

0:29:530:29:56

Basically, what we're going to do is keep a garage space

0:29:560:30:00

for when the disabled come in. They can drive straight into the building.

0:30:000:30:05

There's going to be bedrooms downstairs,

0:30:050:30:09

an extension out to the side

0:30:090:30:11

to create a big lounge and a kitchen area,

0:30:110:30:14

and upstairs I'm going to extend the footprint of the building upstairs

0:30:140:30:19

-to create accommodation upstairs.

-Oh, wow.

0:30:190:30:22

-So quite an ambitious plan then.

-Yeah.

0:30:230:30:25

And eventually there'll be a swimming pool out on the side.

0:30:250:30:29

-Oh, really?

-HE LAUGHS

0:30:290:30:32

Fantastic.

0:30:320:30:33

'Swimming pool eventually? My goodness.

0:30:330:30:36

'Peter really does have a vision.

0:30:360:30:38

'However, this is an ambitious project,

0:30:380:30:41

'so how much is it all going to cost?'

0:30:410:30:44

-Approximately about 50,000.

-Right.

0:30:440:30:47

And what's your involvement going to be, Simon?

0:30:470:30:49

I've been an electrician for about five years,

0:30:490:30:51

so I'm going to try and give my father a hand with the electrics.

0:30:510:30:56

So, is this designed to be a profit-making venture then?

0:30:560:31:00

No, not really. It's just something for me to do.

0:31:000:31:04

I'm coming up to my retirement.

0:31:040:31:06

I've got about another four or five years before I retire

0:31:060:31:10

and this is my retirement project.

0:31:100:31:14

What's the timescale?

0:31:140:31:16

It will be at least a year.

0:31:160:31:18

Obviously I am in full-time employment so it won't be...

0:31:180:31:21

-I couldn't say six months.

-Right.

-It'll be at least a year.

0:31:240:31:28

So, once you've done this then, any plans for anything else?

0:31:280:31:32

No, my wife said this is it.

0:31:320:31:33

Well, listen, congratulations.

0:31:350:31:37

Good luck with it and I really do wish you all the best

0:31:370:31:39

-with the venture.

-Great.

0:31:390:31:41

Well, what a potentially lovely new life

0:31:410:31:45

for this former ambulance station, but of course

0:31:450:31:48

it does depend on getting that all-important planning permission.

0:31:480:31:52

Will Peter get it? You can find out later in the show.

0:31:520:31:55

Back to Willesden in north London, a place that was once a village

0:32:000:32:04

but was transformed to a bustling borough

0:32:040:32:06

by the arrival of the railway.

0:32:060:32:08

Unfortunately, the property I went to see

0:32:080:32:11

was a little too close to the tracks.

0:32:110:32:13

# Train roll on...

0:32:150:32:18

# Outside my door... #

0:32:190:32:24

But jumping on the property train was Raj, a property solicitor who,

0:32:250:32:29

along with his business partner, paid 291,000

0:32:290:32:33

for this one-bedroom flat.

0:32:330:32:35

But he didn't want to keep it a one-bed for long.

0:32:350:32:38

So, what we're looking to do is reconfigure the property.

0:32:400:32:43

At the moment it's a one-bedroom, so what we're going to be doing

0:32:430:32:46

is taking the wall down between the current bedroom

0:32:460:32:49

and the actual kitchen, and relocating the kitchen

0:32:490:32:52

into an open-plan area.

0:32:520:32:54

-And making that TINY little bit left over...

-Yes.

-..a bedroom?

0:32:540:32:58

-It can work. It has worked on previous projects.

-Oh, Raj!

0:32:580:33:01

It can actually work.

0:33:010:33:04

With a £20,000 budget and a two to two-and-a-half month timescale,

0:33:040:33:08

Raj was very confident.

0:33:080:33:10

So, when we return five months later,

0:33:100:33:13

has Raj found that extra space?

0:33:130:33:15

That original bedroom is now a bright kitchen-cum-lounge.

0:33:200:33:24

You know, so far I am surprised.

0:33:240:33:26

This doesn't feel nearly as cramped as I thought it would.

0:33:260:33:30

The original kitchen is now a second bedroom

0:33:330:33:35

and the boiler has been housed in a nice, sleek cabinet.

0:33:350:33:39

The original bedroom still needs a bit of tidying up

0:33:470:33:50

but this reconfiguration and refurbishment is looking good.

0:33:500:33:54

The room which we're currently standing in was the former kitchen.

0:33:540:33:57

Now you can see it's actually become a second bedroom

0:33:570:34:00

and I think that's worked very well. The back bedroom remains

0:34:000:34:03

but at that time there were pretty much dark colours on the wall

0:34:030:34:06

so what we've done is we've used neutral colours throughout

0:34:060:34:08

the flat, new flooring put down.

0:34:080:34:11

The actual bath suite,

0:34:110:34:12

we've retained the actual one which was there before.

0:34:120:34:14

We thought that was a good one, but as you can see,

0:34:140:34:16

it's had a good polish up so we think it fits the bill.

0:34:160:34:20

Raj changed his mind about knocking the wall down

0:34:210:34:24

between what was the lounge and the kitchen

0:34:240:34:26

to create an open living space, and I think that's a good use

0:34:260:34:30

of the footprint, and the finish is impressive.

0:34:300:34:33

Raj hasn't undertaken a lot of the work he originally thought.

0:34:360:34:39

Has not replacing the bathroom and keeping that wall saved his budget?

0:34:390:34:43

We had initially estimated a budget of £15,000 - £20,000

0:34:430:34:47

but that involved the taking down of the stud wall

0:34:470:34:50

and putting in RSJs and so forth.

0:34:500:34:52

However, because we decided not to go ahead with that,

0:34:520:34:55

the budget's actually come in significantly under.

0:34:550:34:57

I think when everything's totally finished, there's a few

0:34:570:34:59

snagging items to do, I think we'll have looked at hitting

0:34:590:35:03

probably about the £15,000 mark, so we're very, very happy with that.

0:35:030:35:06

It's five months since we were last here

0:35:080:35:10

but Raj let a friend use the flat for two months

0:35:100:35:13

before spending three on doing the work, so only a slight expansion

0:35:130:35:17

on his two and a half month timescale.

0:35:170:35:20

And, unfortunately, there is one final improvement Raj didn't do.

0:35:200:35:24

He hasn't changed the windows and I think that would have

0:35:240:35:27

made this flat SO much more attractive if he decides to sell on.

0:35:270:35:32

He might not be able to change the trains but the sound? Mm...

0:35:320:35:35

Definitely!

0:35:350:35:37

# Can't ignore the train... #

0:35:370:35:40

But there's only one way to know if Raj is on track

0:35:430:35:46

for a potential profit, and that's to get a pass

0:35:460:35:48

from two local estate agents.

0:35:480:35:50

Paying £291,000 at auction and with a renovation spend of 15 grand,

0:35:530:35:58

Raj's total spend is 306,000. So, what is the flat worth now?

0:35:580:36:04

I feel, in the current market, the correct price is £350,000.

0:36:060:36:10

I think this property would sell for around £375,000.

0:36:100:36:14

I feel the correct rental figure per calendar month

0:36:140:36:18

is £1,400 in the current market.

0:36:180:36:20

I feel this property would rent for around £1,300 - £1,350

0:36:200:36:25

per calendar month.

0:36:250:36:27

So, taking those top values,

0:36:270:36:29

a sale would give Raj a potential pre-tax profit of £69,000

0:36:290:36:34

and if he rented the flat he could achieve just under a 5.5% yield.

0:36:340:36:40

I'm very happy with those values. It's exactly what I'd expected.

0:36:400:36:43

I think we will market the property at £375,000 and if we can get

0:36:430:36:47

a resale figure between 350 - 375,

0:36:470:36:49

we're more than likely to sell it on.

0:36:490:36:52

If not, we'll put it onto the lettings market.

0:36:520:36:55

We'll definitely be hitting the auction room again

0:36:550:36:57

but I think the trick about buying at auctions is to be patient

0:36:570:37:01

and not to buy in haste and repent at leisure.

0:37:010:37:03

So, most certainly we'll be in the auction room again

0:37:030:37:06

and we hope to buy sooner rather than later.

0:37:060:37:09

# Into the valley

0:37:170:37:21

# Betrothed and divine... #

0:37:210:37:23

Yes, it's time to return to the valleys and this building,

0:37:230:37:27

a former ambulance station

0:37:270:37:28

in the Welsh village of Cymmer, West Glamorgan.

0:37:280:37:31

It had a guide price of £10,000,

0:37:310:37:34

which seemed reasonable for a lot with a fair bit of land.

0:37:340:37:38

So, what to do with it?

0:37:380:37:40

The imaginative and laudable answer was supplied by Peter,

0:37:400:37:44

who'd bought the property for £22,500.

0:37:440:37:47

With a budget of £50,000 and help from his electrician son, Simon,

0:37:470:37:52

Peter, an occupational health nurse, saw this as a retirement project

0:37:520:37:57

and hoped to develop this building into holiday accommodation

0:37:570:38:00

for touring cyclists.

0:38:000:38:02

And he planned that the ground-floor would be developed specifically

0:38:020:38:06

to accommodate people with disabilities

0:38:060:38:08

and underprivileged children.

0:38:080:38:10

Now, what are you going to do if they say, "You can't do this"?

0:38:100:38:14

Uh... We'll approach that when it comes to that!

0:38:150:38:20

This was both an exciting and incredibly worthy project

0:38:200:38:24

but having paid £12,500 above the guide price,

0:38:240:38:28

and having no planning in place,

0:38:280:38:30

Peter and Simon were certainly taking a chance.

0:38:300:38:33

Three years later,

0:38:350:38:36

and we've come back to see what's become of Peter's dream project.

0:38:360:38:41

# You are nearer than heaven

0:38:410:38:48

# I get the feeling

0:38:480:38:50

# I get nearer by the day... #

0:38:500:38:56

Well, they took a chance and it's obvious something has caused delays.

0:38:570:39:02

Most of the time it's been regarding the planning permission

0:39:020:39:05

but there was an issue with obtaining bat and reptile reports.

0:39:050:39:10

There was one newt found on the property

0:39:100:39:14

and we had to take precautions then to remove newts

0:39:140:39:18

and to observe that there wasn't any further,

0:39:180:39:21

and also to put up a barrier to stop any coming in.

0:39:210:39:25

Newt protection and planning permission issues,

0:39:270:39:29

as well as waiting for the sale of his mother's property,

0:39:290:39:32

means it's been nearly three years since he started,

0:39:320:39:36

but thanks to his perseverance,

0:39:360:39:38

Peter's dream can finally be realised

0:39:380:39:41

as that particularly tricky planning permission has been granted.

0:39:410:39:45

Basically, this is the ground floor of the apartment

0:39:450:39:50

and the majority of the work will involve this new extension here

0:39:500:39:54

in this section to create a lounge and kitchen facilities

0:39:540:39:59

for the disabled unit.

0:39:590:40:01

Peter will then divide the main garage section into five.

0:40:010:40:05

Three bedrooms,

0:40:050:40:08

a garage space-cum-storeroom

0:40:080:40:11

and the bathroom.

0:40:110:40:12

So, the building will effectively be split into two flats,

0:40:140:40:17

each with three bedrooms, a bathroom and a kitchen,

0:40:170:40:20

with the ground-floor flat adapted for people with disabilities.

0:40:200:40:24

There will also be a communal area in the ground-floor extension

0:40:240:40:28

and, all being well, Peter plans on installing

0:40:280:40:31

the property's own hydro pool.

0:40:310:40:33

At the moment, it looks as though his dream project will cost

0:40:330:40:36

a total of £72,500.

0:40:360:40:39

Is Peter on the right track?

0:40:390:40:41

We asked two local estate agents to give us their thoughts

0:40:430:40:46

on Peter's plans so far.

0:40:460:40:49

In this area, local businesses do struggle.

0:40:490:40:52

There isn't an awful lot happening in this village.

0:40:520:40:54

Businesses don't seem to last long because of the economy here.

0:40:540:40:58

There is vast unemployment in these valleys, so it is very difficult.

0:40:580:41:03

This is a very popular area for mountain biking

0:41:030:41:06

and they'll pay good money for good runs.

0:41:060:41:09

Accommodation which is planned which is a three-bedroom flat

0:41:090:41:12

and one that's going to be completely geared

0:41:120:41:14

for disabled users, I think that's going to carve

0:41:140:41:17

quite a nice niche for him and I think it will

0:41:170:41:20

attract that type of mountain biker in that market.

0:41:200:41:25

When fully finished and including a pool, what does the agent

0:41:280:41:31

think a commercial enterprise based on Peter's plan could make?

0:41:310:41:35

That's quite a difficult one

0:41:380:41:39

because there aren't a lot of commercial properties in this area,

0:41:390:41:43

so I think you'd probably be looking at about 600 per calendar month.

0:41:430:41:49

That would mean around a 10% yield.

0:41:490:41:52

If, by some unfortunate circumstances,

0:41:520:41:54

the local economy couldn't sustain the business,

0:41:540:41:57

and assuming planning permission could be obtained,

0:41:570:41:59

would Peter get his projected £72,500 investment back

0:41:590:42:03

if the building were to be turned into two residential flats?

0:42:030:42:07

I think you would get anything between 375 and 400

0:42:100:42:14

per calendar month per unit.

0:42:140:42:16

To change this into a three-bedroom good-sized accommodation

0:42:160:42:22

you would probably market each unit

0:42:220:42:26

for around about £35,000 - £40,000.

0:42:260:42:30

I would put a vacant possession value

0:42:300:42:34

on each flat of circa £40,000

0:42:340:42:38

if it's done to a high standard

0:42:380:42:39

and to the standard that is intended in the planning permission.

0:42:390:42:42

This is a dream project for Peter

0:42:420:42:45

but would he think about this plan B?

0:42:450:42:48

I may consider splitting it into two units if the business didn't take off

0:42:480:42:53

but basically it's quite exciting.

0:42:530:42:57

I thrive on this sort of thing

0:42:570:42:59

and I'm just looking forward to getting into it.

0:42:590:43:03

Well, that's it for today but join us next time

0:43:060:43:08

for some more auction action.

0:43:080:43:10

And stories of property developing.

0:43:100:43:12

-Look forward to seeing you then.

-Goodbye.

-Goodbye.

0:43:120:43:14

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