Episode 19 Homes Under the Hammer


Episode 19

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Transcript


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Hello. More and more people would love to have a property portfolio,

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but that doesn't have to be as grand as it sounds.

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No, even if you can raise a small sum,

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you can usually find something to buy.

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And at least you've got your foot on the property ladder.

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But where do you start? Try a property auction.

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Because of the variety on offer at an auction,

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it's a great place to invest your money.

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And if you do your research and make sure your finances are sorted out,

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you should be on your way to making a success of it.

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So, let's see what our buyers invested in on today's programme.

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The buyer of this mid-terrace in Carlisle wasn't quite sure

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what was in store until she got the keys.

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-Which was when?

-Today.

-Today.

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But a much nicer surprise was awaiting me

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in this multi-storey property in Kent.

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Upstairs is where it gets rather exciting.

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And at this community centre in Dunfermline,

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there's lots of space, but...

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what you do with it...

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Now, that's the tricky bit.

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All these properties have been sold at auction.

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

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when they went under the hammer.

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Sold.

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Carlisle has its roots far back in history,

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as is evident by the castle and its defensive walls.

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But it's also a modern, vibrant place

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with excellent public transport and a variety of shops and markets,

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earning the city the title of Shopping Capital of Cumbria.

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So, 15 minutes' walk from the train station and the town centre

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is the property I'm here to see.

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Two-bedroomed, mid-terrace, a guide price of £20,000.

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Not a lot.

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However, initial signs aren't good.

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Boarded-up windows, what are we going to find inside?

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Well, it's going to be dark, that's for sure. But what have we got?

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Oh, actually, surprisingly, nice, high ceilings. Yeah, we like that.

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Fairly standard layout.

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Sort of corridor here, front living room there.

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Yeah, looks all right.

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Could do with a coat of paint.

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Stairs up to your bedrooms

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and through into the, sort of, rear living area.

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I'd love to see a big, open fire there,

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it's obviously got a gas one at the moment.

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It's all a bit, well, dingy, but again, that could be to do with

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those shutter-wood things on the windows.

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But, oh, dear. That's the kitchen.

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And by the look of it, the loo, as well.

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# What a state I'm in... #

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It is, indeed, in an awful state.

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The kitchen and bathroom have been extensively damaged

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and, of course, it's not just fire that damages.

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So does the water used to put it out.

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So, a particularly close inspection of this property

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is going to be paramount.

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# Oh, oh-oh-oh

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# What a state I'm in... #

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So, up here, two really good-sized double bedrooms. No loo, obviously.

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Maybe enough space to put a loo here? I don't know.

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You could play around with the layout a little bit.

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And look, this bedroom even comes with a house plant.

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This should really be on the outside.

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It just gives an indication of the, kind of, state of disrepair

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this place has got into.

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But from up here,

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a really useful chance to check out exactly how much damage that fire in

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the kitchen has caused and you can see, looking over that roof,

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it looks to me like it's going to be a new roof job.

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You really do need to know what you're doing

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when it comes to fire-damaged properties and the first question

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is whether the building is still structurally sound.

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Once you've passed that hurdle,

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then there's still a lot of work you need to do, just to clear

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the property out safely

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and, only then, can you start cleaning up the remaining surfaces.

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Whoever is doing the work needs to remember,

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you're not just dealing with the fire and water,

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but also, the potential chemicals produced from all sorts of materials

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burning at high temperatures.

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So, what will a local property expert think of this scarred,

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but nicely-proportioned property, guided at £20,000?

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My first impressions of the property are good. It's a spacious property -

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two reception rooms, two big double bedrooms, it's in a good location.

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So, all positive.

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-But what about the damage?

-There has been fire damage.

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There's a lot of work to be done in this house.

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The integrity of the building is yet to be seen.

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Once they start pulling things apart

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then they'll find out exactly what they need to do.

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There are always surprises when you're renovating a property.

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You know, the tree growing through into the bedroom and things.

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So how much will all this work cost?

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I would imagine somewhere in the region of £25,000 to £30,000

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would be a sensible kind of budget.

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You know, taking into consideration it needs double glazing, it needs

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central heating putting in and then bathrooms, kitchens, etc, etc.

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So, you know, it does need an amount of work.

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I think, with a property like this, when it comes up to auction,

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when we're doing the viewings and things like that,

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because we get such a whole variety of people looking,

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your weekend DIY-er, your builders, all those sorts of people,

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if it's the guy looking for something to do over the winter

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or whatever, then probably something like that will probably put him off.

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As always, if you know what you're doing, then it's all very simple,

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but if you don't, this property could be a whole heap of pain.

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But would the final return on the property be worth it?

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Once it's been refurbished to a good standard,

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I would be probably looking to market it at £89,995.

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If this property came up for rental,

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I would expect it to achieve between £400 and £450 per calendar month.

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Well, a wee bit of patching up to be done on this one,

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especially in that kitchen and bathroom.

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But it's a good-sized house and just remember that guide price,

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20,000 quid. I think it's a great one to go for.

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

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OK, 20,000 is the guide. 20, then?

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20 here. At 20, I'm bid. In once.

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21, 22, 3, 4,

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5, 6, 7.

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Shake of the head. With you, it's £26,000.

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This fire-damaged sale is off to a very brisk start.

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Bids rapidly climb to £46,000 as we rejoin the action.

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46, 46, I'm bid, 7.

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With you then... Oh, you're back in at 47. 48?

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48, I'm bid. 49?

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You're out, you're in. £48,000, with you, sir.

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Against you, against a load of other people.

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At £48,000, first time.

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At £48,000, second time. Are we done?

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-Selling away, then, at £48,000...

-HAMMER SLAMS

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Well done, sir.

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Stephen made that final bid of 48,000.

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He bought the house in partnership with his sister, Tina,

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who came along to meet us with Stephen's daughter, Courtney.

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-Courtney, Tina, great to meet you both.

-Nice to meet you.

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Congratulations. Tell me why you wanted to buy this place, then.

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Well, we went to the auction

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because it was at such a good price in the auction book.

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It's in a good area, it's close to, in fact,

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it's very good walking distance into town.

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And it is quite a good size,

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with having two downstairs rooms plus your kitchen and bathroom.

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Tell me a bit more about what you do when you're not doing this.

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I run a letting agency and my brother runs the estate side of it.

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I manage my landlords' properties.

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And when Tina's not managing other people's properties,

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the family are doing up their own.

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Brother Stephen has a building company and this will be

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their second property that they've renovated together.

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Tina has renovated and sold on three properties already

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and she rents out two more.

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She sees the work as part of her DNA.

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It's a family thing. My dad was a builder. It's just what we do.

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-We just build them or renovate them and then we sell them on.

-Right.

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But the whole family is very much involved in this whole

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-world of property.

-We are, yes.

-All of us.

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So, tell me a bit about you and Courtney,

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-what's going on here, then?

-Well, Courtney left school in September

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and, with this being our second one, she asked if she could learn

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-and pick up what we know.

-Oh, great.

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So you're learning to become a property developer?

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Yeah, I want to be trained up to be one.

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Well, maybe we'll be seeing more of Courtney on Hammer in the future.

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Here's hoping.

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In the meantime, the question of the roofless rooms.

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-Now, the kitchen, obviously some fire damage there.

-Yes.

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Were you aware of that?

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We knew there had been fire damage done,

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we didn't know the extent of it until we got the keys and we came in.

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-Which was when?

-Today.

-Today.

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-So, are you in a state of shock or are you quite happy?

-Um, yes.

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I didn't realise that the roof at the bottom end was actually down,

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but that's fine.

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We had a little bit of contingency money, anyway,

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-so that will go towards that.

-Right. So, not too much of an issue, then?

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-No.

-And obviously fire damage can be superficial,

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but it can have caused structural problems. Any thoughts on that?

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My brother will look at that.

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But looking at it, it does only look like it's the roof. Yeah.

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-Only the roof, then?

-Yes.

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Well, I guess people with building connections can say

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"Just the roof", but experience always pays off.

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Tina's planning a full renovation.

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I wonder if that includes moving the downstairs bathroom.

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You couldn't really do that,

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because people still like two good-sized double bedrooms

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in a property, so we're looking to put an en-suite over the hallway.

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Right. So what's the budget?

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-Our budget is about 20,000.

-OK.

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So it's fairly, sort of, reasonable, actually.

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Yes, we have realised that we're going to have to put a new roof on

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in the kitchen and the bathroom, as well,

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so that has taken it up a little bit, to the 20,000.

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Right. And what's the, sort of, time scale?

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-We work on round about 12 weeks.

-Right.

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-And we usually come in on time, as well.

-And are your hands-on?

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Um, no, I tend not to be, because I've got a business that I run,

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so it'll be down to Stephen

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-and I've got a younger brother, who looks after things, as well.

-Great.

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So, on a day-to-day basis, Courtney,

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how much time are you going to spend here?

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For the next couple of weeks, like, most of the day, like

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full working day here and then from there, I'll be going round,

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like, doing more of the design stuff, like looking at kitchens

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and bathrooms to go into the house.

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Yeah, so I'll be pretty hands-on with my family, as well.

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So what's the idea, then?

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Is it to do it up and rent it out or to sell it on?

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No, we'll just sell it on.

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-And why not rent?

-We just like to turn them over, really.

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-And are you looking forward to having Courtney involved?

-Oh, yes.

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Yes, we're very family-orientated anyway. So yes, no problems, at all.

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Good, it sounds like you've got a good mentor.

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-Congratulations. Good luck with it.

-Thank you.

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-I'm going to look forward to seeing how you get on.

-Nice to meet you.

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Thank you.

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So, Courtney learning the tricks of the property developing business

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at the age of 18, from Tina and the rest of the family.

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Quite a challenging project to start with, especially that kitchen.

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

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Ashford in Kent is home to the fantastic high-speed rail line,

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which will take you into London in only 38 minutes,

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as well as providing connections abroad, to both Lille and Paris.

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And not only does Ashford have a fast train line,

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it's also one of the most rapidly-expanding areas in England,

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now home to a wide range of high street and independent shops,

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restaurants and cafes.

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Well, my interest has certainly increased in size together

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with this town, so time to pick up my pace and explore further.

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MUSIC: "Totally Connected" by T-Connection

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# Totally connected... #

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And it's those fantastic rail links that has attracted

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so many commuters to this area...

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..and the town is a busy, bustling place to be.

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The property I'm here to see today is slap-bang in the middle

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of Ashford's town centre

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and you certainly couldn't have more amenities right on your doorstep.

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Sandwiched between a barber on one side and a cafe on the other

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is this former travel agent with an all-inclusive deal,

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which includes four floors in total.

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Plenty of property on offer for a guide price of 100,000-105,000.

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Let's fly on inside and take a tour.

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MUSIC: "Fly Away" by Lenny Kravitz

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# I want to get away, I want to fly away... #

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Well, this is a lovely space for any business.

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Nice and bright and you can tell it was a travel agent's!

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You'd have a big screen up here, showing the sunny Caribbean island

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or somewhere beautiful like that,

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lots of glossy travel brochures all along here,

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the desk, to welcome people,

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and even somewhere that you can exchange your traveller's cheques.

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Love it, fantastic.

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It's got everything you need. A little area out the back,

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this would probably be another office.

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Downstairs in the basement,

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there are three good-sized rooms that are being used for storage.

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But without windows, could they be used for anything else?

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One thing to bear in mind is that this is a conservation area,

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so major work would need to meet with a planner's approval.

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But upstairs is where it gets rather exciting. I'm going to investigate.

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At first-floor level, there's a decent-sized kitchen area.

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And then, there's this lovely, bright,

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airy room at the front of the building.

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The bay window lets light stream in.

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That's when conservation regulations come into their own.

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They preserve lovely features like these and, as you know,

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I do like my period features.

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It's not all sweetness and light, though.

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There's a pretty big hole in the ceiling.

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But don't forget, there's another floor upstairs to investigate.

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Hmm, it all feels terribly wonky, walking up here.

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I mean, just take a look at the doorframe.

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You don't need anyone to tell you there's been

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a bit of movement in this house.

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I reckon, get a surveyor in and check this place out,

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as soon as possible. Oh, now, look at this.

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The bathroom is massive! It is a total waste of space, I might add.

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You've got the loo over here,

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then you've got to walk all the way over here to the sink.

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I think you really need to think about this layout,

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because it's not working, as it is. Why not have a self-contained flat?

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You've got the square footage,

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so all you need is to have this space cleverly laid out

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because if you leave it as it is, a bathroom, well,

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you can flush your profit straight down the pan, for starters.

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MUSIC: "Wash Your Face In My Sink" by Dream Warriors

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# You wash your face in my sink? In my sink? Sink?

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# You wash your face in my sink? In my sink? Sink?

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# You wash your face in my sink... #

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You also have a lovely large and bright room to the front of

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the second floor, which I'm pleased to see still has a fireplace intact.

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I think you could create a two-bedroom flat

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and it could really work well on these two upper floors.

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You'd need to get an architect in, to work out the correct

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use of space, who could also help you plan a separate entrance.

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But I think this would be fairly straightforward,

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with a partition wall on the ground floor, to create a new

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corridor to the staircase, which you could then turn around.

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Yes, you would lose a little bit of space from the shop, but I think

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it could be worth it, to gain a flat on those two floors above.

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So, if you convert the first and second floors into a flat,

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what would you do with this, the ground floor?

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Now, I know the property currently has a business classing of A-1,

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which means it can be used as a variety of different shop types,

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such as a hairdressers. It could be a gift shop

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or, perhaps, even a sandwich bar.

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Or you could think about applying for change of use,

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for, perhaps, an estate agents or a solicitors' firm here.

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Although times are hard on the high street, I think it would

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be such a wasted opportunity not to take advantage of this

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central town location and all the passing footfall.

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It does have to be noted that parking is an issue here -

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there isn't any.

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So, that's a bit of a downer for a business or a resident,

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but will that put buyers off?

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A local property agent came along, to give us her thoughts

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on this interesting property,

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guided at £100,000 to £105,000.

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My thoughts on the property are that it's a fantastic location,

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there's a lot of scope to alter the building

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and make changes to it to improve it.

0:18:020:18:05

If this was my property, I would convert it into residential

0:18:050:18:08

and commercial, to maximise the profits.

0:18:080:18:11

Having a flat near the town centre is quite attractive to some people.

0:18:110:18:16

We're agreed, then, on the potential here.

0:18:160:18:19

But this will be a numbers game.

0:18:190:18:21

What if, for instance, this was just done as a straightforward

0:18:210:18:24

renovation with no conversion?

0:18:240:18:26

The whole property renovated would resell for approximately

0:18:260:18:30

£180,000 to £190,000.

0:18:300:18:33

And if the new owner did decide to make the two floors into one flat,

0:18:330:18:37

how much would that be worth on the resale market on its own?

0:18:370:18:41

The resale value of a two-bedroom flat in this area would be within

0:18:410:18:45

the region of £125,000 to £130,000.

0:18:450:18:49

The agent thinks that if the whole building was just refurbished,

0:18:490:18:52

it could get you about £24,000 a year in rent.

0:18:520:18:56

But if you went ahead with conversion,

0:18:560:18:58

what rentals could you get, then?

0:18:580:19:01

The shop on its own, once the conversions have taken place,

0:19:010:19:04

would rent for approximately £18,000 to £20,000 per annum.

0:19:040:19:10

A two-bedroom flat in this area would rent

0:19:100:19:13

for approximately £650 to £700, per calendar month.

0:19:130:19:17

Dividing this property could really pay off.

0:19:170:19:20

These top valuations could bring you in an income of £28,400 per year.

0:19:200:19:26

An extremely convenient location

0:19:260:19:29

and there's no doubt that this property has plenty of potential.

0:19:290:19:33

But it's not without its issues.

0:19:330:19:35

It's in a conservation area, there's no parking

0:19:350:19:38

and as a fully-commercial property,

0:19:380:19:41

I really don't think the space is being fully utilised at the moment.

0:19:410:19:45

Time to head to the auction

0:19:450:19:46

and see who wanted to exchange their money for this.

0:19:460:19:51

Lot 41, say 90,000?

0:19:510:19:53

90,000, I thought you might. £90,000 I have.

0:19:530:19:57

92, 92, I don't mind, sir, 94 if it helps.

0:19:570:20:01

92 is on my left. Then 94 and 96

0:20:010:20:04

and 98, 98, and 100. 102.

0:20:040:20:08

The packed auction room means bids came in thick and fast.

0:20:080:20:12

We rejoin the bidding at 111,000.

0:20:120:20:15

111 at my left. 112, 112 is bed.

0:20:150:20:18

113?

0:20:180:20:20

113. 114? 114, 115?

0:20:200:20:24

You said that three times before.

0:20:240:20:27

You mean it, this time?

0:20:270:20:29

At £114,000, still in the centre of the room, for the first time,

0:20:290:20:33

then, at 114,000.

0:20:330:20:36

For the second time at 114,000.

0:20:360:20:39

You're out on my far left, last chance.

0:20:390:20:41

114,000, third and final time, are you all done?

0:20:410:20:44

-HAMMER SLAMS

-Sold at 114,000.

0:20:440:20:48

And that calm and collected buyer was Adrian,

0:20:480:20:51

who bought the property for 114,000.

0:20:510:20:55

Adrian used to work in financial services, but since 2007,

0:20:550:20:59

he's been buying commercial and residential properties

0:20:590:21:02

and working as a developer, full-time.

0:21:020:21:05

-Well, congratulations. You did well.

-Thank you very much.

0:21:050:21:08

You got the property you wanted on auction day.

0:21:080:21:10

Now, you used to be in finance. Why the swap?

0:21:100:21:13

Well, when I was in the financial services world,

0:21:130:21:15

I used to be involved in equipment leasing and renting,

0:21:150:21:19

but that was, sort of, cars, trucks, lorries, busses,

0:21:190:21:22

that type of thing, so renting and buying property is actually

0:21:220:21:26

quite similar. It's just a different type of facet, really.

0:21:260:21:30

Why this building? Tell me more.

0:21:300:21:32

Really, I bought this because I think it's a great location.

0:21:320:21:35

It's just off the high street, it's walking distance from

0:21:350:21:38

the international train station and I think it's got a lot of potential.

0:21:380:21:42

Adrian and I totally agree on what a good buy this property is.

0:21:420:21:47

So, will he agree on how much it should be transformed?

0:21:470:21:50

Well, my plan is really to see if I can subdivide it

0:21:500:21:54

into two separate parts, so a self-contained shop

0:21:540:21:58

and then, a two-bedroom apartment.

0:21:580:22:00

So, let's talk through how you're going to work it upstairs,

0:22:000:22:03

because you've got two different levels...

0:22:030:22:05

Yeah, on the first floor, I'd like to create an open-plan kitchen,

0:22:050:22:09

diner, living area, which will be double aspect, so it will have

0:22:090:22:13

lots of natural light coming through and be a nice, sort of, living space.

0:22:130:22:16

Hopefully, up on the second floor

0:22:160:22:18

we can create two bedrooms and a bathroom.

0:22:180:22:20

Now, how are you going to do that?

0:22:200:22:22

Well, I think we'd need to look at the natural light and the windows,

0:22:220:22:25

so I think we'll probably have two bedrooms at the front

0:22:250:22:27

and keep the bathroom at the back, where you've got all the pipework.

0:22:270:22:31

Great. Adrian and I are certainly singing from the same song sheet.

0:22:310:22:35

He's got a clear plan in his head,

0:22:350:22:37

as you'd expect from a seasoned developer.

0:22:370:22:40

His intention is to open up the shop area and put a staff kitchen and loo

0:22:400:22:44

in the basement, completing all the work in three to four months' time.

0:22:440:22:48

He's well used to dealing with planners,

0:22:500:22:52

so this being a conservation area shouldn't worry him.

0:22:520:22:55

How lucky do you think you're going to be with that?

0:22:550:22:57

Have you had a chat with the planners already?

0:22:570:22:59

Yeah, we had a word with the planners.

0:22:590:23:01

They'd be happy, in principle with the idea of residential,

0:23:010:23:05

provided we keep the shop unit,

0:23:050:23:08

because they want to make sure that there's continued employment.

0:23:080:23:11

And also, we won't be able to make many changes

0:23:110:23:13

to the front of the building.

0:23:130:23:14

Adrian's plans for making the second floor rooms open-plan

0:23:140:23:19

may mean using steel supports and this might also involve him

0:23:190:23:23

in a Party Wall Agreement, which usually means time and money.

0:23:230:23:28

So, what sort of budget are you looking at, to do all the work here?

0:23:280:23:31

I'm thinking we're going to need to spend

0:23:310:23:33

around 30,000 to 35,000, in total.

0:23:330:23:36

Adrian, good luck with this project.

0:23:360:23:37

It's going to be exciting to see what happens

0:23:370:23:40

and I hope you get the planning permission.

0:23:400:23:42

-Thank you very much.

-Thank you.

0:23:420:23:43

With his financial services background,

0:23:440:23:47

I hope Adrian will keep a close eye on the figures during this project,

0:23:470:23:50

but will he get that all-important planning permission

0:23:500:23:54

for the flat on these upper floors,

0:23:540:23:56

so that he can really make the most of this space?

0:23:560:23:59

I hope so.

0:23:590:24:01

You can join me later in the programme,

0:24:010:24:03

to find out how he gets on.

0:24:030:24:06

Still to come, it might not be beautiful,

0:24:060:24:08

but this community centre won someone's heart.

0:24:080:24:11

I had a skip in my step when I went up to hand over the cheque.

0:24:110:24:14

And Adrian lets us back in, to shed some light on

0:24:180:24:22

whether his upstairs/downstairs plan has paid off.

0:24:220:24:25

Time to head back to Cumbria,

0:24:340:24:36

where earlier, I met aunt and niece team, Tina and Courtney.

0:24:360:24:39

They bought this fire-damaged mid-terrace two-bed property

0:24:420:24:45

for over twice the guide price.

0:24:450:24:48

Mind you, that guide price was a modest £20,000.

0:24:490:24:53

Tina, and Courtney's father, Stephen,

0:24:530:24:56

run a lettings agency together and are seasoned renovators.

0:24:560:25:00

But for Courtney, this was something of a training exercise.

0:25:000:25:04

And to be honest, they couldn't have picked a tougher one to start with.

0:25:040:25:08

-Now, the kitchen, obviously, some fire damage there.

-Yes.

0:25:100:25:14

-Were you aware of that?

-We knew there had been fire damage done.

0:25:140:25:18

We didn't know the extent of it until we got the keys and we came in.

0:25:180:25:23

-Which was when?

-Today.

-Today.

0:25:230:25:25

So are you in a state of shock, or are you quite happy?

0:25:260:25:30

Yes, I didn't realise the roof at the bottom end was actually down,

0:25:300:25:34

but that's fine, we had a little bit of contingency money, anyway,

0:25:340:25:38

so that will go towards that.

0:25:380:25:41

So on a day-to-day basis, Courtney,

0:25:410:25:42

how much time are you going to spend here?

0:25:420:25:45

For the next couple of weeks, like, most of the day,

0:25:450:25:48

like full working day here and then, from there, I'll be going round,

0:25:480:25:52

like, doing more of the design stuff, like, looking at kitchens

0:25:520:25:56

and bathrooms to go into the house.

0:25:560:25:58

Before any designing was to take place, though, there was

0:26:000:26:04

a lot of dirty work to be done.

0:26:040:26:06

It wasn't just the kitchen that needed sorting, either.

0:26:060:26:09

The bathroom had also been ravaged by the fire and I think this

0:26:090:26:12

was definitely the first bedroom I'd seen that needed pruning.

0:26:120:26:16

They reckoned it would take 12 weeks to make this place habitable.

0:26:200:26:24

Well, just 11 weeks later, we're back.

0:26:240:26:27

It's hard to believe it's the same kitchen.

0:26:350:26:38

The change downstairs is phenomenal.

0:26:570:27:01

By using contemporary design, they've transformed this

0:27:020:27:05

once-neglected property into a fresh, beautiful home.

0:27:050:27:09

The kitchen is unrecognisable,

0:27:110:27:14

with a fantastic new skylight in the brand-new roof.

0:27:140:27:17

To find the new bathroom, you'll need to pop upstairs.

0:27:200:27:23

Tina and her team have squeezed a bathroom between the two bedrooms

0:27:290:27:33

and created a corridor to accommodate the change.

0:27:330:27:37

It's made one bedroom smaller, but I think it's a very smart move.

0:27:370:27:42

The transformation of the kitchen is key to this renovation

0:27:480:27:52

and, for me, it's the attention to detail and the high-quality finishes

0:27:520:27:56

throughout this property that will set it apart.

0:27:560:27:59

Tina and Courtney came along to tell us

0:28:020:28:05

just how successful this renovation project has turned out to be.

0:28:050:28:08

Well, we did put the property on the market.

0:28:100:28:12

It went on the market on the Thursday,

0:28:120:28:14

ready for going into the paper on the Friday,

0:28:140:28:17

but by the Thursday night, we did actually have viewings going round

0:28:170:28:21

and, by Saturday morning,

0:28:210:28:23

those viewers were actually putting offers in.

0:28:230:28:26

Wow. Rewind, though.

0:28:260:28:28

Let's hear what's been done here first, starting with the kitchen.

0:28:280:28:31

We stripped it out, totally. We took all the roof off, all the beams out.

0:28:330:28:38

We raised it all up, so we raised the walls up to give it the height,

0:28:380:28:42

then we put skylights in on the roof just to make it light and airy.

0:28:420:28:46

We decided we wanted to make it more of a kitchen/diner,

0:28:460:28:49

that way, giving the use of two full rooms in the main part of the house.

0:28:490:28:54

So, we went upstairs, had a look at the back room,

0:28:540:28:58

we measured everything out and we felt it was fine to put the bathroom

0:28:580:29:03

upstairs and then still have a good sized room as the second bedroom.

0:29:030:29:08

Whilst Tina is very experienced, her niece, Courtney,

0:29:080:29:12

had one or two things to learn.

0:29:120:29:14

Well, she has learned a lot as she's gone along.

0:29:140:29:17

The first job was for stripping all the walls.

0:29:170:29:20

I handed her a steam stripper

0:29:200:29:23

and she looked at it and didn't know what it was.

0:29:230:29:25

So, we had to give her a quick course on how to strip the walls.

0:29:250:29:28

We had to strip everything off the walls,

0:29:280:29:30

including the woodchip wallpaper which took quite a while

0:29:300:29:35

and, pretty much, just rip off all the skirting boards

0:29:350:29:39

and just everything from the house, so it was just back to the basics.

0:29:390:29:43

So, with Courtney working hard

0:29:430:29:45

and her uncles doing the majority of the big jobs,

0:29:450:29:49

there was little need for tradesmen to come in,

0:29:490:29:52

meaning a total transformation here took just ten weeks.

0:29:520:29:57

But what about the original budget of £20,000? Is that still intact?

0:29:570:30:02

We ended up spending 27,000, in total, which was over the budget,

0:30:020:30:08

but with the kitchen and all the work that we've done in the kitchen

0:30:080:30:13

and moving the bathroom upstairs, that is what sent the budget up,

0:30:130:30:17

really, and we did go for a much nicer kitchen in the end, as well.

0:30:170:30:21

Along with all the obvious changes here,

0:30:210:30:23

they've also done a total rewire, installed central heating

0:30:230:30:28

and replaced all the windows.

0:30:280:30:31

And considering the standard of finish here,

0:30:310:30:34

I don't think the overspend on the budget is anything to worry about.

0:30:340:30:37

Add that £27,000 renovation cost to the purchase price of 48,000

0:30:390:30:45

and they've invested £75,000 on this once-dilapidated property.

0:30:450:30:50

We asked two estate agents along

0:30:500:30:53

to assess whether it's all been worth it.

0:30:530:30:55

I think the property's been refurbished

0:30:560:30:58

to an excellent standard. It's very spacious.

0:30:580:31:01

Both bedrooms are a good size

0:31:010:31:02

and the kitchen, in particular, is fabulous.

0:31:020:31:05

The kitchen also impressed the agent who saw the house before work began.

0:31:050:31:09

You know, it's got all the integrated goods.

0:31:090:31:11

It's got the oven and things like that. It really does give you

0:31:110:31:15

the wow factor, as you walk through.

0:31:150:31:16

It's not something I've seen before, so it's very good.

0:31:160:31:19

The decor of the property has been finished to a lovely standard.

0:31:190:31:22

The addition of feature walls in some of the rooms should really

0:31:220:31:25

help the property to stand out from others available on the market.

0:31:250:31:28

What they've done here is particularly good,

0:31:280:31:30

they've moved the bathroom upstairs.

0:31:300:31:32

With that in mind, I would market the property at around £100,000

0:31:320:31:35

and expect to achieve offers of around 90,000 onwards.

0:31:350:31:38

If I was to bring this property to the market for sale, I would

0:31:380:31:41

suggest an asking price of somewhere in the region of £90,000 to £95,000.

0:31:410:31:45

£90,000 would give them a pre-tax profit of 15,000.

0:31:450:31:50

It's been a good learning curve for Courtney

0:31:500:31:53

and did the marketing experience live up to the expectations?

0:31:530:31:56

We did viewings on the Thursday night.

0:31:560:31:59

By Saturday morning, we had offers on it and, by Monday morning,

0:31:590:32:03

we'd actually accepted an offer on the property.

0:32:030:32:05

We accepted an offer of £90,000, which we were very happy with.

0:32:050:32:09

A hop over the border now into Scotland,

0:32:150:32:17

and then on to Dunfermline in Fife, a place steeped in history.

0:32:170:32:22

Robert the Bruce was born in the palace here.

0:32:220:32:25

Nowadays, it's a vibrant place, with some major employers,

0:32:250:32:29

and it's also well-placed for commuting,

0:32:290:32:31

with plenty of bridges to take you to Glasgow, Edinburgh and beyond.

0:32:310:32:36

I don't know about you,

0:32:360:32:37

but every time I see the legendary Forth Rail Bridge,

0:32:370:32:40

it makes me wonder,

0:32:400:32:42

what happened to the first, second and third bridges(?)

0:32:420:32:45

You never hear about them.

0:32:450:32:46

Well, seven miles from Dunfermline

0:32:460:32:48

and about ten miles from the Forth Road Bridge

0:32:480:32:51

is the little community of Blairhall and that's where this is located.

0:32:510:32:57

Up for grabs at the auction was a former community centre.

0:32:570:33:01

Touch of '70s about it, touch of needing a lot of work about it.

0:33:030:33:07

Let's take a look inside.

0:33:070:33:09

Its guide price of £30,000 would still make it hard to overcome

0:33:110:33:15

the lack of curve appeal here.

0:33:150:33:17

MUSIC: "As Ugly As I Seem" by The White Stripes

0:33:170:33:19

# I am as ugly as I seem

0:33:190:33:23

# Worse than all your dreams

0:33:230:33:28

# Could ever make me out to be... #

0:33:280:33:33

With a generous car parking area,

0:33:330:33:35

this could be a commercial proposition, but what?

0:33:350:33:40

As it stands, it's easy to see why this community centre

0:33:400:33:44

is no longer a valued member of the community. So, what's on offer?

0:33:440:33:49

Well, into the entrance area here, you've got loos,

0:33:490:33:52

you've got a little, sort of, office area there.

0:33:520:33:57

Obviously, in a bit of a state, but that's just the start.

0:33:570:34:01

You could imagine plenty of '70s discos taking place here,

0:34:030:34:07

back in the day.

0:34:070:34:09

But now, it will take more than a little TLC

0:34:090:34:12

to restore this to its former glory.

0:34:120:34:15

Through here is the kind of room you would expect in a community centre -

0:34:220:34:27

one very big space.

0:34:270:34:29

A couple of ancillary rooms off it, which presumably were used

0:34:290:34:32

for storing equipment and stuff like that.

0:34:320:34:35

I mean, very typical of things that were built around this time

0:34:350:34:39

for this kind of use and what you've got is just a lot of square footage.

0:34:390:34:44

What you do with it, now that's the tricky bit.

0:34:440:34:48

And that is the issue with this place.

0:34:480:34:51

It's a big footprint for 30 grand, but it's not the bonniest

0:34:510:34:55

building ever and what kind of business could work here?

0:34:550:34:59

Could it be a shop or are we talking some kind of workshop?

0:34:590:35:03

Would you get a change of use or could you get planning permission

0:35:030:35:06

to build something in its place?

0:35:060:35:09

Well, it comes back down to research.

0:35:090:35:11

You've got to know the local area,

0:35:110:35:13

you've got to know what you might do with this place,

0:35:130:35:16

you've got to know how much it would cost you to do whatever you

0:35:160:35:18

wanted to do with it and how much the end product could sell for.

0:35:180:35:22

But get all that right and you could be laughing.

0:35:220:35:24

MUSIC: "The Laughing Gnome" by David Bowie

0:35:240:35:26

# Ha, ha, ha, hee, hee, hee,

0:35:260:35:29

# I'm a laughing gnome and you don't catch me

0:35:290:35:33

# Said the laughing gnome... #

0:35:330:35:35

Seeing that gnome has made me think of outdoors.

0:35:350:35:39

So, with this, what are you looking at?

0:35:390:35:41

Well, for me, I'm looking at the land itself.

0:35:410:35:44

How flat is it, how close to local amenities,

0:35:440:35:47

services, gas, electric...?

0:35:470:35:49

Well, obvious the fact it was used as a community centre

0:35:490:35:52

is great news, cos all things like sewerage and electricity

0:35:520:35:54

and water are already there.

0:35:540:35:56

The other good bonus is the amount of land you've got around it.

0:35:560:35:59

A nice bit at the back here and it's flat. Easy access to the road.

0:35:590:36:04

Forget about the building, knock it down, clear the site

0:36:040:36:07

and you've got yourself a fantastic building plot.

0:36:070:36:10

I'm picturing a very nice house on this site.

0:36:100:36:13

There's a total of 2,235 square feet in old money, here,

0:36:130:36:18

and on offer for a guide price of around £30,000.

0:36:180:36:22

You could do a lot with that.

0:36:220:36:24

But the question is,

0:36:240:36:25

would that be a viable proposition here?

0:36:250:36:28

A property expert came along to tell us.

0:36:280:36:31

Looking at what the new build detached houses are achieving,

0:36:310:36:36

I would have thought it would be

0:36:360:36:38

in the region of around about £180,000 to £200,000.

0:36:380:36:42

You'd have to add in demolition costs to your purchase price

0:36:420:36:45

and then your build costs, but still worth considering.

0:36:450:36:49

Are there any other options that would work here?

0:36:490:36:52

If you could get planning consent, I think it might convert to a shop.

0:36:520:36:57

There doesn't seem to be a decent-sized shop in the village

0:36:570:37:00

and with the car parking, that's a major plus,

0:37:000:37:02

because vehicles could get off the road.

0:37:020:37:04

You ought to be able to achieve a rental of around about

0:37:040:37:09

£7,500 per annum.

0:37:090:37:10

Well, definitely one of those projects for somebody who can

0:37:110:37:14

think outside the box, this one.

0:37:140:37:16

It could be so much, but you've got to get the numbers right.

0:37:160:37:20

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

0:37:200:37:24

So, we'll move onto lot 15.

0:37:240:37:26

It's a former community centre,

0:37:270:37:29

with associated car-parking.

0:37:290:37:31

Looking for 30,000, to get started.

0:37:310:37:34

25, then.

0:37:340:37:35

Sorry. 10? 10, OK.

0:37:370:37:40

10 I'll take, 12 I need.

0:37:400:37:42

Worth a try, but just 45 seconds later,

0:37:420:37:45

the offers have climbed up to a more respectable 20,000.

0:37:450:37:49

20, 20,000 I have at the moment.

0:37:490:37:51

Are we all done at 20,000?

0:37:510:37:54

20 and a half? 21, 21 and a half?

0:37:540:37:57

22, 22 and a half?

0:37:570:37:59

23, 23 and a half?

0:37:590:38:01

24, 24 and a half?

0:38:010:38:03

25, 25 and a half?

0:38:030:38:05

25 and a half. 26?

0:38:060:38:08

26 and a half?

0:38:080:38:10

26 and a half? Yep, 27.

0:38:100:38:12

27 and a half? 28, 28 and half?

0:38:120:38:17

Are we all done at 28,000?

0:38:170:38:19

All done? Going once...

0:38:190:38:22

Twice...

0:38:220:38:24

Third and final time... Sold to the gentleman sat down on my left.

0:38:240:38:28

Well, right in there from the beginning was Phil

0:38:280:38:31

and he finally got it for £28,000.

0:38:310:38:35

When it comes to buildings like this one, Phil has plenty of form,

0:38:350:38:38

including a police station he turned into a block of offices.

0:38:380:38:43

His friend, Brian, has come along with him to tell us

0:38:430:38:45

more about what he has planned for this centre.

0:38:450:38:48

-Brian, Phil, great to meet you both.

-Hi.

-Good to meet you.

0:38:480:38:51

Congratulations.

0:38:510:38:52

Tell me why you wanted to buy this place, then.

0:38:520:38:55

I didn't really want to buy it. I just bought it on spec.

0:38:550:38:59

-What do you mean, on spec?

-Well, in the hope that I could rent it.

0:38:590:39:02

It was a very good price,

0:39:020:39:04

it was an opportunity to buy somewhere of this size

0:39:040:39:06

for a certain amount of money

0:39:060:39:08

and I thought I perhaps could make some profit by renting it.

0:39:080:39:11

-Rent it out?

-Definitely renting it out.

-What, as it is?

0:39:110:39:15

No, we'll need to renovate the place, cos it's in quite a mess.

0:39:150:39:19

-It needs new windows, new heating, lots of stuff...

-Right.

0:39:190:39:23

But I'm very lucky, because I've got Brian to help me with that.

0:39:230:39:26

And what's the relationship between you too?

0:39:260:39:28

Me and Brian have been friends for 30 years

0:39:280:39:30

and we've worked together for quite some time.

0:39:300:39:33

-Brian's basically the brains.

-The brains?

-The brains.

0:39:330:39:37

I'm the brawn and Brian's the brains, but he'll help me get it done.

0:39:370:39:40

So are you a builder or a project manager?

0:39:400:39:43

-No, actually, I'm self-employed.

-As a...?

0:39:430:39:46

-Maintenance, all this sort of maintenance, yeah.

-Right, brilliant.

0:39:460:39:51

So why did Brawn and Brains

0:39:510:39:53

think this rundown community centre was for them?

0:39:530:39:56

I went to the auction to buy a toilet and I didn't get the toilet,

0:39:560:40:00

-so I bought this.

-You went to buy a toilet?

-Yes. But I didn't get it.

0:40:000:40:04

You're a man of interesting tastes when it comes to property.

0:40:040:40:07

Aye, very much so. Very much so.

0:40:070:40:09

"I wanted a toilet first. I bought a community centre."

0:40:090:40:12

Well, we used to buy a lot of houses and rent houses out.

0:40:120:40:15

That is your traditional...

0:40:150:40:17

We still have the houses, but we try to get something a bit different now.

0:40:170:40:20

-Right.

-So, that's what we're trying.

0:40:200:40:22

Whether it'll work out or not, time will tell. I don't know.

0:40:220:40:25

Have you narrowed down your property to just

0:40:250:40:27

toilets and community centres?

0:40:270:40:30

No, no, we're wide open to anything else, something a bit different.

0:40:300:40:33

Well, Phil and Brian may have a rather unorthodox approach,

0:40:330:40:38

but it seems to work.

0:40:380:40:40

Phil has some 40 commercial properties and, for those

0:40:400:40:43

of you wondering, he has bought a public convenience before.

0:40:430:40:46

Phil does seem keen that this building will serve

0:40:460:40:50

some kind of function in the community.

0:40:500:40:52

There's things I think it could be used for.

0:40:520:40:55

It might be perhaps for childminding,

0:40:550:40:58

it may be used as a nursery.

0:40:580:41:00

Somebody might want to rent it, as a hall,

0:41:000:41:03

and they could rent it out to individual people.

0:41:030:41:05

I've had a number of individual people ask me

0:41:050:41:07

if they could use it, but that's not what I would do.

0:41:070:41:10

I would rent it to somebody else and they could do that.

0:41:100:41:13

-And then, keeping, what, the layout pretty much...?

-Exactly as it is.

0:41:130:41:17

-Really?

-Yes, aye.

-What about outside?

0:41:170:41:19

We'll put in fencing and we'll pave it and make it rather nice,

0:41:190:41:23

that's what we'll do.

0:41:230:41:25

I would have thought somebody would buy this and knock it down...

0:41:250:41:28

Well, that's the option that's open to me.

0:41:280:41:30

Brian said this to me,

0:41:300:41:31

he said we could see if we could get it rented

0:41:310:41:33

and even if we got it rented, perhaps for maybe for five or ten years,

0:41:330:41:36

we could then sell it on to a developer.

0:41:360:41:38

We could sell it on to a developer now, but where was the developer

0:41:380:41:41

when it was for sale just now? It's not really a...

0:41:410:41:44

They're not really buying things just now, are they? Or are they?

0:41:440:41:48

I don't know.

0:41:480:41:49

-Was it a bit of a punt for you?

-Oh, it's a definite punt.

0:41:490:41:52

Oh, aye, definitely a punt.

0:41:520:41:54

Do you know, when I was at the auction and I bought it,

0:41:540:41:57

the guy in front of me turned and said to me,

0:41:570:41:59

"What do you intend to do with that?" I says, "I really don't know."

0:41:590:42:02

He said, "I'd like to rent it for a fight club.

0:42:020:42:05

He said, "I run a fight club." I said, "Well, come and see me."

0:42:050:42:08

-And he's been up and he's seen me.

-Wow.

0:42:080:42:10

Aye, was sitting right in front of me.

0:42:100:42:12

That must have given you a bit of confidence, actually.

0:42:120:42:14

I had a skip in my step when I went up to hand over the cheque.

0:42:140:42:17

Phil's definitely a one-off,

0:42:180:42:20

but why did he move into buying one-off properties?

0:42:200:42:24

We did do a lot of houses but then we started buying shops and things like

0:42:240:42:28

that and they're better contracts for us, they're longer, as you'll know.

0:42:280:42:32

So, that's the idea of this, it gives you a mixture.

0:42:320:42:34

Had you seen it before you bought it?

0:42:340:42:36

Only from the outside and I was very pleased when I came in.

0:42:360:42:40

-It's really not as bad as it looks.

-It's not as bad as it looks, no.

0:42:400:42:44

-No, it isn't.

-You'd be surprised when it's cleaned up.

-Aye.

0:42:440:42:47

A lot of redecorating is required, right enough,

0:42:470:42:50

but once that's done, you'd be amazed.

0:42:500:42:51

So, who's going to be doing the work?

0:42:510:42:53

Well, Brian will help me enormously,

0:42:530:42:55

but we have other chaps who will take care of the heating

0:42:550:42:58

and we've got a decorator. So, various people will come.

0:42:580:43:02

And what do you think about this?

0:43:020:43:04

I think it's great. I really do.

0:43:040:43:07

I think it's an amazing place, very good value for money.

0:43:070:43:11

It's a pretty safe gamble.

0:43:110:43:13

Costs you more to buy a half-decent car

0:43:130:43:15

than it would be for what I paid for this.

0:43:150:43:18

And what's the kind of...

0:43:180:43:20

How do I talk about budget?

0:43:200:43:21

OK, yeah, I mean, what is the budget for...?

0:43:210:43:24

-We were speaking about that today.

-We were.

0:43:240:43:26

And we reckon it's 15,000 to 20,000. We reckon, to do it correctly, aye.

0:43:260:43:30

If it doesn't rent, we can knock it down.

0:43:300:43:32

You know, we'll have five or six windows lying in a garage,

0:43:320:43:35

but we can knock it down. But I wouldn't want to be knocking it down.

0:43:350:43:39

Not necessarily what I was expecting, so there you go.

0:43:390:43:42

-Well, we'll see how we get on.

-Good luck with it.

-Thanks very much.

0:43:420:43:45

-Thank you very much.

-Nice to meet you both.

0:43:450:43:48

Well, what a turn up for the books.

0:43:490:43:51

I was 95% sure this would go to a developer and surely, knocking

0:43:510:43:56

it down and building something here is the most profitable option.

0:43:560:43:59

It just goes to show that, for some people,

0:43:590:44:01

it's not just about the money. Jolly good it is to hear, too.

0:44:010:44:05

How will they get on? What will happen with this place?

0:44:050:44:08

You can find out later in the show.

0:44:080:44:10

Well, the big question is,

0:44:130:44:15

have our buyers made money on their investments?

0:44:150:44:18

Well, time has passed, so let's go back and take a look.

0:44:180:44:22

We return now to Ashford in Kent, where earlier, I met full-time

0:44:270:44:31

property developer Adrian, who bought this former travel agency.

0:44:310:44:35

Boasting four floors in total,

0:44:360:44:38

Adrian had managed to buy it for a very reasonable £114,000.

0:44:380:44:43

I thought this property had bags of potential

0:44:440:44:47

and Adrian had some very interesting ideas for it.

0:44:470:44:51

What potential have you seen with this?

0:44:510:44:53

Cos I think there's quite a lot to offer here.

0:44:530:44:55

Yeah, well, my plan is really to see

0:44:550:44:58

if I can subdivide it into two separate parts,

0:44:580:45:01

so a self-contained shop and then, a two-bedroom apartment.

0:45:010:45:05

Adrian has lots of experience.

0:45:070:45:09

Good job. This property needed someone with know-how.

0:45:090:45:13

Did this mixed-use project get off the ground

0:45:140:45:16

in his three to four months' time scale?

0:45:160:45:19

Well, almost one year on, we're back to find out if we got lift off.

0:45:190:45:24

The old travel agency is now a lovely deli cafe,

0:45:260:45:30

with a spacious seating area.

0:45:300:45:33

There's room in the basement, as well, for food storage,

0:45:350:45:38

prep area, and an employee's cloakroom.

0:45:380:45:41

Wow, what a difference a year has made.

0:45:480:45:51

If you think that looks good, let's go through the new door,

0:45:510:45:54

up the private stairs, into the upstairs flat.

0:45:540:45:58

It's turned out nice, hasn't it?

0:46:080:46:11

So, here on the first floor,

0:46:120:46:14

we originally had two rooms, with an office area at the front.

0:46:140:46:19

We knocked through the wall here

0:46:190:46:20

and created a nice spacious galley-style kitchen

0:46:200:46:24

and opened up the room, to provide

0:46:240:46:26

a nice living, dining and eating area.

0:46:260:46:31

We also have a nice double aspect here,

0:46:310:46:34

with light coming through from the back and from the front.

0:46:340:46:37

So, it's provided a really nice, comfortable space.

0:46:370:46:40

Oh, Adrian, you are spot on, there.

0:46:400:46:42

I always liked this bright, airy space

0:46:420:46:44

and I think this has made the best of it.

0:46:440:46:47

Will the second floor level impress as much?

0:46:470:46:51

Up here, they've split the large back bedroom, to create

0:47:000:47:03

a lovely modern bathroom and then, also, a smaller bedroom.

0:47:030:47:07

It's quite a transformation from the oversized bathroom that it was.

0:47:070:47:11

And there's a handy loo on the half-landing, as well.

0:47:160:47:20

I always thought that this property had real potential

0:47:230:47:27

and Adrian has certainly fulfilled it,

0:47:270:47:29

with a vibrant business using the two lower floors

0:47:290:47:31

and a very smart centrally-located flat on the two upper floors.

0:47:310:47:35

But this is a conservation area. He will have had to apply

0:47:350:47:39

for change of use for the shop, to a classification that allows hot food.

0:47:390:47:44

Has it been a bumpy ride?

0:47:460:47:48

The planning process was quite straightforward,

0:47:480:47:50

it took about three or four months to get everything agreed

0:47:500:47:53

and then we started the building work,

0:47:530:47:55

which was about six or seven months in total.

0:47:550:47:58

But we found a tenant for the shop within about seven or eight months

0:47:580:48:02

of the original purchase.

0:48:020:48:04

Adrian really hasn't hung about here

0:48:050:48:07

and if it wasn't for local flood damage

0:48:070:48:09

needing the attention of his builders,

0:48:090:48:12

he would have been done much sooner.

0:48:120:48:14

So, how did his original budget of 30,000 hold up?

0:48:160:48:20

Well, we went a little bit over.

0:48:200:48:22

We came in at a total spend of 43,000,

0:48:220:48:25

but that was mainly due to the additional structural work

0:48:250:48:28

that we had to do on the rear extension.

0:48:280:48:30

So, that had to be strengthened with an RSJ and some new flooring put it.

0:48:300:48:36

We also had to do a bit more work on the roof than we expected,

0:48:360:48:40

but other than that, it was pretty straightforward.

0:48:400:48:42

Adrian already had a tenant lined up for the flat.

0:48:450:48:48

But will two local property experts

0:48:480:48:50

think his spend of 157,000 was a wise investment?

0:48:500:48:55

My first impressions were good,

0:48:570:48:59

that it's been a good, well thought-out conversion,

0:48:590:49:02

maximising the potential.

0:49:020:49:04

Town centre flats like this are very sellable.

0:49:040:49:08

There's plenty of space further out of town, but this is prime.

0:49:080:49:12

And what about the shop?

0:49:120:49:15

It's a great use for the town centre, a deli takeaway,

0:49:150:49:18

just what's required at lunchtime, with a lot of workers in the area.

0:49:180:49:22

It's slightly different.

0:49:220:49:24

We've got a little, sort of, Indian takeaway-cum-restaurant

0:49:240:49:27

and it's, sort of, light and airy - well fitted, well presented.

0:49:270:49:30

If it's got good food, it should prosper.

0:49:300:49:34

I would expect the shop to let for £14,000 per annum.

0:49:340:49:38

The shop, I think, would be around, sort of. 14,000 a year.

0:49:380:49:42

Which is in fact what Adrian is getting from the existing tenant.

0:49:420:49:47

But what about that lovely flat?

0:49:470:49:50

I would expect to be able to obtain £650 per calendar month for the flat.

0:49:500:49:56

I think it may well achieve 700.

0:49:560:49:59

I'm very pleased with those valuations. They're pretty much where

0:49:590:50:02

I thought they would be and, yeah, it's been a good outcome, overall.

0:50:020:50:06

Both agents think if the building was to be sold as a whole,

0:50:060:50:09

with sitting tenants in both the flat and the shop,

0:50:090:50:12

it would fetch between 200,000 and 225,000, with the shop

0:50:120:50:17

earning £14,000 per annum

0:50:170:50:19

and the flat bringing around £8,000 per annum.

0:50:190:50:23

This would mean a total rental of around £22,000.

0:50:230:50:27

Yeah, very worthwhile, from the financial point of view, yeah.

0:50:270:50:30

It's been a good project.

0:50:300:50:31

That commercial property proved a winner for Adrian,

0:50:340:50:37

so would this former community centre in Blairhall, Scotland,

0:50:370:50:41

also do the same?

0:50:410:50:43

Once again, finding just the right use was the big question.

0:50:430:50:47

Or would it be best just to knock it down and start again?

0:50:470:50:50

Enter Phil on the left here, the brawn,

0:50:510:50:55

and his pal, the brains, otherwise known as Brian.

0:50:550:50:58

Phil bought the property as a pure punt for £28,000,

0:51:000:51:04

but he'd originally gone to spend a penny.

0:51:040:51:07

I went to the auction to buy a toilet

0:51:070:51:10

and I didn't get the toilet, so I bought this.

0:51:100:51:12

-You would buy a toilet?

-Yes, I'd buy a toilet, yeah.

0:51:120:51:16

Well, instead, he got three toilets

0:51:160:51:18

and over 2,200 square feet of 1970s nostalgia

0:51:180:51:23

and, much to my surprise,

0:51:230:51:25

wanted to renovate the centre to its former glory.

0:51:250:51:29

Phil still had a hankering for the old community centre,

0:51:290:51:32

as a place for locals to stage events

0:51:320:51:34

and just over four months later, that's exactly what he's achieved.

0:51:340:51:38

MUSIC: "The Nutcracker" by Pyotr Ilyich Tchaikovsky

0:51:380:51:41

Dance teacher Lorraine has 100 to 120 students

0:51:450:51:50

attending classes in ballet, tap, jazz and competitive dance

0:51:500:51:53

and there are adult activities, too.

0:51:530:51:56

It keeps kids off the streets, gives the kids ambition,

0:51:560:51:59

somewhere to go at nighttimes after school

0:51:590:52:01

and I've also got a few students that are looking to

0:52:010:52:04

further their career in dance and actually become teachers,

0:52:040:52:08

so it's given them a career and a job and a lifestyle, which is nice.

0:52:080:52:11

Lorraine sounds like a happy customer.

0:52:110:52:14

So what did Brian and Phil have to do to create this dance studio?

0:52:140:52:18

'Everything's been renovated.

0:52:180:52:20

'The roof was repaired, all the windows were replaced,'

0:52:200:52:25

the heating was upgraded, plasterboard throughout was repaired,

0:52:250:52:30

the electrics were checked, security lighting has been fitted.

0:52:300:52:33

New alarms, new fire alarms, the toilets have been totally renovated.

0:52:330:52:39

-A lot of plastering, Brian?

-A lot of plastering, yes, aye.

0:52:390:52:41

-Willie the painter did that.

-That's right.

0:52:410:52:43

In fact, we thought he was living in there at one point.

0:52:430:52:46

An impressive job in just four months

0:52:460:52:49

and only four weeks longer than Phil's original estimate.

0:52:490:52:52

Brian uses a tried and tested team of four specialists

0:52:520:52:56

on all Phil's restoration work.

0:52:560:52:58

As well as Willie the painter, there's Chris the plumber,

0:52:580:53:02

Campbell the cleaner and Rab the slabber,

0:53:020:53:05

whose job it was to tackle the external paths and fencing...

0:53:050:53:09

plus, one of the most daunting of all the tasks they faced.

0:53:090:53:13

There was a choked drain,

0:53:130:53:15

but we weren't able to clear the drain, it had to be dug up

0:53:150:53:18

and completely renewed from one corner to the other of the building.

0:53:180:53:24

The drain had collapsed.

0:53:240:53:26

That's what had caused a lot of the problems with the building,

0:53:260:53:29

because the water that was coming off the roof wasn't being removed

0:53:290:53:32

from the premise and as soon as we did that, the place started to,

0:53:320:53:35

sort of, recover, shall we say?

0:53:350:53:38

Dodgy flat roofs, faulty drainage,

0:53:380:53:40

no matter how many times I mention them, they still keep

0:53:400:53:43

cropping up, but obviously that wasn't all that needed tackling.

0:53:430:53:47

This old building presented plenty of challenges

0:53:470:53:50

for Phil and Brian's trusty team.

0:53:500:53:52

So, this room needed quite a lot of work done to it.

0:53:520:53:55

We had to replace all the broken plasterboard here,

0:53:550:53:57

reattach the electrical fittings, the floor required repair,

0:53:570:54:01

the radiators needed reattached, we had a hole in the roof up here

0:54:010:54:05

and also damaged plasterboard here, all done and repaired.

0:54:050:54:09

And then we went in here and we have created an attic space

0:54:090:54:13

and a space we found that was wood-lined. We've put power

0:54:130:54:17

and we've put light up there, so it's extra storage space

0:54:170:54:20

and, obviously, we've revamped the cupboard.

0:54:200:54:23

Was that all, then? Of course not.

0:54:230:54:25

The kitchen, too, had more than its fair share of problems

0:54:250:54:29

that needed sorting out.

0:54:290:54:30

We had to rip out the old kitchen and put in a new kitchen.

0:54:300:54:34

New sinks, the plumbing had to be all renewed.

0:54:340:54:38

There had been a leak and there was a hole in the floor,

0:54:380:54:41

but that's been fixed.

0:54:410:54:43

It's all been retiled and redecorated,

0:54:430:54:46

new ceiling, new lights.

0:54:460:54:47

As you can see, it's been a lot of work

0:54:470:54:49

and a considerable amount of expense, as well.

0:54:490:54:51

MUSIC: "Money" by Pink Floyd

0:54:510:54:53

Ah-hah, yes, the money.

0:54:530:54:55

Phil's original estimate for all this work was

0:54:550:54:57

an optimistic 15,000 to 20,000.

0:54:570:55:01

So, what did it actually cost?

0:55:010:55:03

We spent £28,000.

0:55:030:55:06

So it cost £28,000, we spent £28,000.

0:55:060:55:10

Well, we'll soon find out if it's all been worth it.

0:55:100:55:14

But I can't help wondering if this project has put a strain

0:55:140:55:17

on Phil and Brian's working relationship.

0:55:170:55:20

Ten years ago, I started to do buy-to-lets

0:55:200:55:23

and we've worked continually for the ten years without a fall-out.

0:55:230:55:27

-Yes, that's true.

-That's true.

0:55:270:55:30

And what's been the highlight of the past four months?

0:55:300:55:33

-Seeing the place finished is the highlight.

-The end of the job.

0:55:340:55:38

Well, there could be more highlights to come,

0:55:380:55:41

because we asked two property experts to give us their valuations.

0:55:410:55:45

Will it be lots more than the £56,000 total spend?

0:55:460:55:51

If you bought the building, as it stands at the moment,

0:55:510:55:53

ready to go, with vacant possession on the market,

0:55:530:55:57

I would think you're probably talking about £60,000 to £65,000.

0:55:570:56:02

That could mean a profit of between £4,000 and £9,000.

0:56:020:56:06

Is Phil impressed with that?

0:56:060:56:07

-I really think it's worth more money than that.

-That'll be a no, then.

0:56:070:56:11

To be fair, commercial properties are notoriously difficult to value.

0:56:110:56:16

What does the other agent think?

0:56:160:56:18

Well, it is an unusual property.

0:56:180:56:21

But given the market,

0:56:210:56:22

I believe we could achieve between £95,000 and £105,000.

0:56:220:56:27

Well, that's realistic. I think that's about right, aye.

0:56:270:56:31

I think that's about right.

0:56:310:56:33

A commercial property is often worth what someone is willing to pay.

0:56:330:56:37

In this case, being tailored for a very specialist purpose

0:56:370:56:41

has determined what it is worth to the dance school,

0:56:410:56:44

who are renting it for £18,000 per annum.

0:56:440:56:48

I am delighted and I'm sure that it's a fairly good rent I've got for it.

0:56:480:56:53

But at the same time, the pleasure really for me is

0:56:530:56:56

it's a young business and I do think that they could grow

0:56:560:57:00

and do very well here.

0:57:000:57:01

Plus the fact that the local people can use it,

0:57:010:57:04

which to me was a good thing.

0:57:040:57:06

This studio is a lot better than our old studio.

0:57:060:57:08

We have disabled access, pram access,

0:57:080:57:11

we also have a kitchen, so we can cater for different events.

0:57:110:57:15

It's a lot bigger, cleaner and safer environment for the kids.

0:57:150:57:19

Since I was three years old, I wanted to be a dance teacher

0:57:190:57:21

and I thought, with my old studio, that was it.

0:57:210:57:24

When I got this opportunity to have the larger studio,

0:57:240:57:28

it was my dream come true.

0:57:280:57:31

It does sound like a win-win.

0:57:310:57:32

And another quirky building has worked out for Phil and Brian.

0:57:320:57:37

He'll have his investment pay for itself in just over three years.

0:57:370:57:42

So, what advice does he have for fellow auction-goers?

0:57:420:57:46

I've always been of the opinion that, when you go to an auction,

0:57:460:57:48

don't go looking to buy something.

0:57:480:57:50

Go looking for a situation to exploit.

0:57:500:57:53

Houses are fine, but if you buy a commercial property,

0:57:530:57:56

nobody knows the value of the thing

0:57:560:57:58

and you can make a good return on your money.

0:57:580:58:01

Yeah.

0:58:010:58:03

Well, that's it for today's show.

0:58:060:58:08

We hope you've enjoyed watching today's buyers

0:58:080:58:10

and maybe got some inspiration along the way.

0:58:100:58:12

-Yeah, look forward to seeing you next time.

-Goodbye for now.

-Goodbye.

0:58:120:58:15

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