Episode 21 Homes Under the Hammer


Episode 21

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Transcript


LineFromTo

Welcome to the show.

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With the property market in a state of flux,

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everybody has to make their own decisions.

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You have to do your research and trust your own instincts.

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Yes, and you need to find out what's going on.

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One way you can do that is by going down to your local property auction.

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Well, there are literally thousands of properties coming up

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for auction every month, up and down the country.

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So why not pop along and see what's up for sale?

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Here are the three properties we've got for you on today's show.

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In the London area of Chelsea, every square metre is precious,

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and I mean really precious.

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Crazy.

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Whereas in Dover, do I have to spell out the problems with this property?

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D-O-G, dog hairs everywhere.

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And in Sandbach, Cheshire,

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the issues with this two-bed mid terrace house

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can be easily seen.

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Told ya.

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All of 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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If you're all done...

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Today, I'm in London, SW10.

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One of the most expensive parts of the capital,

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but it doesn't get that reputation for nothing.

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It's really popular with both pop stars and the rich and famous alike.

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A smattering of restaurants, trendy bars, a famous football club.

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Property prices here aren't cheap but oh, what a place to live.

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MUSIC: "Chelsea Dagger" by The Fratellis

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Yes, this is Chelsea, home of the famous King's Road

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and a vast array of shops and restaurants.

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I've walked just a few minutes from Chelsea's Fulham Road

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to a very desirable spot,

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made up of family homes and those attractive mansion blocks.

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And it's a flat in one of these buildings that I'm here to see.

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And you'll never guess who once lived along this street...

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Kylie Minogue.

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Well, the property I'm here to see,

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I don't think it's quite ready for a pop princess yet.

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Lower ground floor flat, had a guide price of £375,000.

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Let's take a look.

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MUSIC: "Spinning Around" by Kylie Minogue

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# I'm spinning around, move out of my way... #

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A dizzying price for a one-bedroom flat?

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Well, this isn't just London,

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it's one of the most expensive parts of it.

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This rather wholesome block was built in 1902

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but it's in pretty good shape and with a 999-year lease,

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this is what's known as a virtual freehold.

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So all good.

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And then...

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Hmm, this entrance is a bit of a let down.

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For a flat guided at £375,000, it's a bit of a trek

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and there might be some security issues to consider.

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On the other hand, your own front door is always a bonus.

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So, what do you get for what is not an inconsiderable amount of money?

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Not much, actually.

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Still, what I see, I do like.

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It looks like it hasn't been played around with or modified much

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over the years so there are some original features to discover.

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I like the floorboards, they'd be lovely stripped back.

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Skirting boards, they're nice, too.

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So that is your living area, that's a good-sized space.

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It all starts to go a bit wrong when you start to head this way

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cos that's your living area, this is your sort of sleeping

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and, you know, facilities, if you like.

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One bedroom, it's not a bad size.

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Head this way, though, that's the kitchen,

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needs some nice units in it, at least there's a window.

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Look at this, disastrous.

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And the bizarre thing is, there is nothing in that cupboard,

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so that's clearly got to go.

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That would certainly open this bit up

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because this is your route to the bathroom.

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Sumptuous, gorgeous, fantastic, marble...

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No.

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Still, what do you expect for a third of a million quid?

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MUSIC: "Money On My Mind" by Sam Smith

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# I don't have money on my mind, money on my mind... #

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Actually, it's even more than a third of a million.

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It's dark, it's dated, it's decidedly damp.

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It gets cramped as you go further back.

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Nope, this is just not working for me

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or, I suspect, for anyone seeking a Chelsea pad.

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This needs to be high spec, hi tech and the cost of that,

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well, that's going to be high, too.

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You really do have to slip into a very different developer mindset

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when you take on a project like this in an area like this

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and the way you think compared to other parts of the country

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basically has to go out the window so it's absolutely vital that

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you make the most of what you've got here.

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One thing you might want to consider is to create a second bedroom.

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Is that possible given what we've got? Well, maybe.

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Maybe there's some taking out of walls you could do,

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you could think laterally about where you put the kitchen.

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Is it worth doing?

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The only way to find that out is to talk to a local estate agent.

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Yes, you do need to do your homework on the likely costs

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and profits of creating a second bedroom

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and get an architect's advice on what's possible with the layout.

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I know it's difficult to imagine how you could get two bedrooms

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on this footprint, but it could mean some big numbers.

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Sometimes it's really hard to get your head around the prices of

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property in certain parts of London, such as where this flat is situated,

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especially if you live in other parts of the country

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outside the capital.

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Because the numbers are just...out there!

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I mean, really, this flat as it stands, guide price £375,000...

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It's 53 square metres.

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So, let's draw a square metre.

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There you go. That's a square metre, roughly.

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That there is worth at the moment...

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7,000 quid.

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How bout that? That's bonkers, you might think...

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However, done up,

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this place is worth a cool...

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million pounds.

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You did hear me right, which makes that bit of floor worth...

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19,000 quid.

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Step very gingerly.

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MUSIC: "Bonkers" by Dizzee Rascal

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Crazy.

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# Bonkers... #

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So, is that £375,000 guide price a bargain?

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Possibly, but you will need to spend money renovating it to the

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highest possible standards. Does a local estate agent agree?

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The quality of the properties that it would compete with,

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should it come back to the market, is exceptionally high.

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You would need to put in a very high specification bathroom,

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very high specification kitchen,

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also try to return some of the period features if possible.

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But should this stay as a one-bedroom flat

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or should it be two?

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If I wanted to get the maximum rental yield for the property,

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I would put in another bedroom.

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If I was looking to maximise the capital value,

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I would retain the layout as is, as there will be more demand

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at a higher price for a property with larger rooms and a separate kitchen.

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So are we talking a cool million here on resale as I suspected?

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Once renovated, this property, I imagine,

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would sell for upwards of £1 million.

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Yes. A million or possibly even more.

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Even for London, we're talking big numbers here.

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So what about rental values?

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Once this property is renovated,

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it could rent for between £3,250 and £3,500 per month.

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Well, they say that sometimes you've got to bet big to win big

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and that's certainly the case with this flat.

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Not a lot of room for a lot of money

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but around here, get it right

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and it could earn someone a whole pile of cash.

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Let's find out who should be so lucky, lucky, lucky

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when it went under the hammer.

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Lot 74, I'll start at 400,000 on this.

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400, 405?

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Wow, the auctioneer starts at £25,000 over the guide price.

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So let's rejoin the bidding when it reached £564,000.

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564, 565?

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Coming in, 565, 566?

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567?

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568?

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569?

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570?

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571, he's back in.

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He knows it. 572?

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573?

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574?

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575?

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576?

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576, 577?

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578? 578, 579?

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580?

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580 at the back?

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581? 581 in the front.

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582, 583?

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584?

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585?

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586?

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587?

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586,000, first time.

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Second time.

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Third and last time, have you all done?

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586,000, sold. Well done.

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A handshake between business partners Ian and Alex

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on that final bid of £586,000.

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That's a rather gobsmacking £211,000 over the guide price

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for a one-bedroom flat.

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Alex, who works in IT, met us back at the property

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to tell us why he bid big.

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-Alex, great to meet you.

-Great to meet you.

-Congratulations.

-Thank you.

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So, wow. Lot of money.

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Yes. Just a tad, yes.

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570,000 was my ceiling.

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Oh, right. OK.

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But you still happy to get it?

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Yes, I'm really happy with this.

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You know, sometimes you get a good feeling about a project

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and for me, I've got a good feeling about this project.

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I really like the shape of the flat, I love the location.

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The building has been really, really well maintained as well,

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it's just gone through quite an extensive refurbishment programme.

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-So it ticks a lot of boxes for me.

-Why have you bought it?

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Is it for you or to rent out or what?

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My intention is for me to redevelop this,

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convert it into a two-bedroomed space,

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I can kind of squeeze that out of the floor space that we have

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and to move into it and enjoy the fruits of my labour.

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Oh, great.

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Alex may have gone past his ceiling bid by £16,000

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but that's not even a square metre of this flat.

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How is he going to reconfigure it?

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At the moment, there is

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quite a long corridor down the rear of the rear half of the flat

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and I think that's a bit of wasted space.

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So we are just going to adjust some of the interior corridor wall

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and the corners of the floor space which currently is hallway

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will be turned into bathrooms.

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And just eat away into some of the space we've got

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in the current bedroom to give some of that into the living area

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and then use the current kitchen and bathroom to convert

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that into a big sort of master bedroom at the back of the property.

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And where will the kitchen be?

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The kitchen will be integrated into the living area as you come in

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so the current square room will become more of an L-shaped room.

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So in fact, that corner there, some of that will be given into the

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kitchen space to create the typical kind of open-plan living area.

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Not only does Alex plan to make this a two-bedroom flat,

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he wants to squeeze in two bathrooms as well.

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Good luck with that one(!)

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He has a £60,000 budget and a ten-week timescale

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and he plans to give it that high spec feel.

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So his university studies in Landscape, Architecture

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and Design will be handy.

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What does he hope the flat could be worth once it's done?

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I think a conservative estimate could be £700,000 plus,

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to 750,000.

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Well, the agent was quoting numbers a lot higher than that,

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-just so you know.

-OK, that's good news.

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Well, congratulations. Good luck, we will follow this with much interest.

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-Thank you.

-Nice to meet you.

-Cheers.

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So Alex's paying way over the guide price for this little Chelsea flat.

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However, I think he's got some great ideas for it

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and a realistic budget and I think he might be being a little bit

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conservative about what he might make out of it.

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You can find out and re-enter the slightly surreal world

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of London property prices later in the show.

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MUSIC: "River, Sea, Ocean" by Badly Drawn Boy

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Well, leaving those eye-watering London prices behind,

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I'm off to dip my toe in a more sedate, calmer part of the country.

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# Quality sea, makes it to the ocean

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Dover, in Kent, is often seen as the gateway

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to mainland Europe and beyond.

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# Far away, far away... #

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But the town itself isn't without its own attractions.

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There's the famous white cliffs, of course,

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and the castle which presides over the town.

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Look at that fantastic view and that is Dover Castle,

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scene of many turbulent times throughout the centuries.

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Well, these days of course, it's the cry of seagulls

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rather than battle cries that ring out around the town.

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But competition is still fierce

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when it comes to finding affordable accommodation.

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Just a ten minute walk from the high street

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and only seven minutes' walk from the train station

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is the property I'm here to see.

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Now, it was on at the auction for a guide price of £80,000 to £84,000

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and it's this three-storey mid terrace property.

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I'm going to go inside and have a look.

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Now, these little cottages were built around 100 years ago

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for the dock workers in Dover.

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They're solid, they're well-built, a great little investment here.

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Although, I'm not sure this partition has always been there.

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In fact, it really narrows the little lounge here.

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I'd probably get rid of this and open the space up.

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It's got a nice fireplace which could be a feature

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and what I love are these wide, chunky floorboards

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and they run right the way through the whole property.

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Now the floor space down here is not ideal because

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there's the bathroom and it's huge,

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I mean, it's far too big for a bathroom.

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It's a real waste of space.

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In fact, I think in a former life, that may have been the kitchen.

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Not only is it too big as a bathroom...

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it's avocado!

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Well, bits of it are. A two-tone suite?

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Unusual, to say the least.

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Anyway, onwards and upwards.

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So, let's have a look around upstairs.

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No bathroom, as I suspected.

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Good-sized room there, second bedroom through here.

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I think the previous owner might have had quite a lot of animals

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because D-O-G,

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dog hairs everywhere!

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So, this carpet needs to be scooped up and thrown in the skip.

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But it has the bones of a good room, lovely window there, could be

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replaced with a double-glazed unit, but that is a great view over Dover.

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MUSIC: "Point Of View" by DB Boulevard

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# I see birds and trees

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# All the flowers of the world

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# So beautiful

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# Won't you come with me?... #

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Oh, it's a great view looking out,

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but perhaps not so great looking in.

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The two bedrooms are OK

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but obviously need to be completely refurbished

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and stripped of all traces of dog!

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Where's the kitchen, I hear you ask?

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Well, that's on the lower ground floor,

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along with another reception room.

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The kitchen is a good size and it leads out to the garden

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where, once again, the views aren't half bad.

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But I'm beginning to wonder

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whether I'm looking at this house in the right way.

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# Can't you see

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# Life's easy

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# If you consider things

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# From another point of view?... #

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Well, there's a lot of house here over these three storeys

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and it wouldn't take too much effort to turn this

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back into a lovely family home.

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But if you're looking to make the maximum return on your investment,

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well, this is where it gets interesting.

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Because this property comes with full planning permission from

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Dover District Council to convert this whole place into two flats.

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Now, that is a bonus.

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And the two flats that have been approved are for a two-bedroom flat

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on the upper two floors and a one-bedroom self-contained

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or studio flat on the ground floor.

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With a separate entrance already in place,

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you can see that this conversion wouldn't be that tricky.

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But are two flats instead of a good-sized family home

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really what the local market needs?

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What does an estate agent think?

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If you're looking to the future for this property,

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it depends what you're going to do with it,

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either reselling it or letting it.

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If you're letting it,

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you'll get a better income from the two apartments.

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If you're going to resell it,

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-there's probably a broader market for it as a house.

-Interesting.

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I guess ultimately it comes down to the numbers on a property

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that was guided at £80,000 to £84,000.

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This house, when renovated,

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will achieve something in the region of £100,000, maybe £105,000.

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If this were converted into two flats,

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the values of the two apartments are likely to be £40,000 to £45,000

0:18:540:18:59

for a one-bedroom and £50,000 to £60,000 for a two-bedroom flat.

0:18:590:19:04

So resale with build cost may not necessarily favour

0:19:050:19:09

converting to flats.

0:19:090:19:11

Rental returns, though, might.

0:19:110:19:14

The value of this if it were let as a two-bedroom house

0:19:140:19:17

would be £500 per calendar month.

0:19:170:19:19

I think the one-bedroom flat on the lower ground floor would

0:19:190:19:24

achieve £400 per calendar month

0:19:240:19:26

and the upper floor two-bedroom flat would be

0:19:260:19:30

£450 to £500 per calendar month.

0:19:300:19:33

Yup, that means you could almost double your monthly rental income

0:19:330:19:37

with two flats here, so there's a lot to consider.

0:19:370:19:40

So a sizable three-storey house with that very attractive option

0:19:410:19:45

of turning it into two well thought-out flats...

0:19:450:19:48

On the one hand, it could be a lovely family home,

0:19:480:19:52

but on the other, the potential for maximum return on your investment.

0:19:520:19:57

Let's find out who fancied it and what they decided to do

0:19:570:19:59

when it went under the hammer.

0:19:590:20:01

Over the page, then, to the last two lots of the day.

0:20:030:20:06

Lot 82 is a house for improvement

0:20:060:20:09

with approval for a pair of flats for conversion.

0:20:090:20:11

Where do you want to start me, then? 70,000 to get me on my way.

0:20:110:20:14

At 70,000, it would be a steal.

0:20:140:20:16

70,000 I'm in. At 70,000.

0:20:160:20:18

And 72 now...

0:20:180:20:20

72, I've got. And 74, 76?

0:20:200:20:23

76, and 78? 78, and 80?

0:20:230:20:26

79.

0:20:270:20:29

80, if you like...

0:20:290:20:30

You heard him say it.

0:20:300:20:31

And 81? 81, 82?

0:20:310:20:33

83? 84. 84, 85?

0:20:330:20:36

86?

0:20:360:20:38

87? 87,000?

0:20:380:20:40

At 86, then, the first time at 86,000, sitting in front of me.

0:20:400:20:44

86,000 for the second.

0:20:440:20:46

86,000 third and final time.

0:20:460:20:48

If you're sure you're all done, it's going to be sold...

0:20:480:20:50

-GAVEL SLAMS

-Well done, at 86,000.

0:20:500:20:53

And so, for £86,000,

0:20:530:20:55

the successful bidder for the three-storey Dover house is Debbie.

0:20:550:20:59

Now, Debbie is a familiar face on the show, having already bought

0:21:000:21:03

and renovated several properties in the Kent region.

0:21:030:21:06

-Debbie, how are you?

-I'm great, thanks. You OK?

-Well, I'm great.

0:21:090:21:13

I'm just quite excited that, you know,

0:21:130:21:15

you've got a lot of house here for what you paid at auction.

0:21:150:21:18

Yes, I know. We were really pleased with it.

0:21:180:21:21

The three-storey building and it's quite a solid building,

0:21:210:21:24

not in a total state of disrepair,

0:21:240:21:26

for 86,000, so yeah, it was a good price.

0:21:260:21:29

So, describe and tell me what it is you do,

0:21:290:21:32

because you've not bought this for yourself, you're an investor.

0:21:320:21:35

That's right.

0:21:350:21:36

I actually run an auction buying service for clients

0:21:360:21:40

that are mainly abroad, in Singapore and Hong Kong,

0:21:400:21:43

who would like to invest in property and they'd like to refurbish

0:21:430:21:46

properties and build, but don't have the time to do it themselves.

0:21:460:21:50

So that's where I come in.

0:21:500:21:52

I do all the research on the auction plots,

0:21:520:21:55

find out which ones are likely to give us

0:21:550:21:58

the highest return, basically, and then I bid for them

0:21:580:22:01

and get the projects done on behalf of the investors.

0:22:010:22:04

So what was it about this house in particular that you thought

0:22:040:22:07

was worthwhile to bid on?

0:22:070:22:08

This one's got planning permission for conversion to two flats which,

0:22:080:22:12

you know, makes it much more attractive.

0:22:120:22:14

So many developers that I meet go,

0:22:140:22:16

"Yeah, yeah, got the plans, rubbish, don't want to use those.

0:22:160:22:18

"We're going to change it, we're going to put an extra room in here,

0:22:180:22:21

"build an extension out there..."

0:22:210:22:23

So, you know, are you happy with those plans?

0:22:230:22:25

Well, funny you should say that.

0:22:250:22:27

We are half thinking of doing a small extension from the outside store,

0:22:270:22:32

across the other wall there,

0:22:320:22:33

which would give us a much bigger kitchen,

0:22:330:22:36

so we could then push the units back to that wall and this would

0:22:360:22:39

become a lounge and kitchen in one,

0:22:390:22:42

with the bathroom off behind us.

0:22:420:22:45

-So in terms of space, it really would work.

-Yeah.

0:22:450:22:48

But it's the planning and it's the timing and it's all of that

0:22:480:22:50

that's going to not allow you to crack on with this project.

0:22:500:22:53

Well, that's what we've got to add into the equation.

0:22:530:22:55

MUSIC: "Living By Numbers" by New Musik

0:22:550:22:57

# Living by numbers

0:22:570:23:00

# Living by numbers now... #

0:23:000:23:02

So, Debbie has a few issues to weigh up but the key for her,

0:23:050:23:08

really, is the maths and getting the maximum return for her investors.

0:23:080:23:13

OK, so let's talk about what you are actually going to be doing

0:23:130:23:16

in terms of work to this property.

0:23:160:23:18

I mean, as it is a conversion, obviously most things that you

0:23:180:23:21

see are going to be ripped out.

0:23:210:23:23

So it'll go back to a shell,

0:23:230:23:24

although the windows at the front will stay and the door at the front.

0:23:240:23:28

All new windows at the back and all new kitchen units.

0:23:280:23:31

We'll be taking the stairs out that are just behind us as well.

0:23:310:23:35

So taking the stairs out

0:23:350:23:36

because obviously there's no need for them because you're going

0:23:360:23:39

-to use this ground floor entrance as the entrance.

-That's right, yeah.

0:23:390:23:42

Well, Debbie certainly seems to be on top of the layout changes,

0:23:420:23:45

but she still has to check out whether the damp in the front room

0:23:450:23:48

needs remedial work and that's why she's commissioned a damp report.

0:23:480:23:53

She's pretty confident she won't need to put a whole tanking

0:23:530:23:56

or waterproof system in, but if that was needed,

0:23:560:23:59

that wouldn't be good for the numbers or the timescale.

0:23:590:24:03

So come on, Debora, how long is it going to take to get

0:24:030:24:05

the project up and running and complete?

0:24:050:24:08

-I think it'll be finished within three to four months.

-Really.

0:24:080:24:10

Yeah, if we don't go for planning, then we can get...

0:24:100:24:13

The builders are ready to get going as soon as we've got the damp report

0:24:130:24:16

back and we know what we've got to do there,

0:24:160:24:19

-they'll get in here and get this one done.

-What's the budget?

0:24:190:24:22

We've got 45,000 for this one.

0:24:220:24:24

Well, Debora, it's going to be really exciting to see how

0:24:240:24:27

-this one turns out.

-Yes.

0:24:270:24:29

And are you going to do the extension, yes or no?

0:24:290:24:31

-Well, we'll soon...

-We'll see when we come back?

-Yes.

0:24:310:24:34

-Good luck.

-Thank you.

-Thank you.

0:24:340:24:36

Well, there's someone who really knows what she's doing.

0:24:380:24:40

She's done her homework and she's totted up the figures.

0:24:400:24:43

But Debbie still has to receive that damp report and she still has

0:24:430:24:47

to work out whether she's going for an extension out here or not.

0:24:470:24:51

You can find out how she gets on later on in the programme.

0:24:510:24:54

Coming up, in Sandbach, Cheshire, I look for a simple solution.

0:24:560:24:59

Properties aren't all that complicated.

0:24:590:25:01

There's usually some fairly basic reason

0:25:010:25:03

why that kind of stuff is happening.

0:25:030:25:05

Back in Dover, it seems Debbie's definitely got the development bug.

0:25:060:25:10

Well, I bought two more at the beginning of this week.

0:25:100:25:13

I'm a glutton for punishment.

0:25:130:25:16

But first, we're back in SW10

0:25:200:25:22

and the hot property London market that is Chelsea.

0:25:220:25:26

And it was here that we saw a handsome mansion block

0:25:260:25:29

that contained a less than handsome one-bedroomed flat.

0:25:290:25:32

It was bought by Alex for £586,000,

0:25:360:25:40

£211,000 over the guide price.

0:25:400:25:44

-A lot of money.

-Yes.

0:25:440:25:46

Just a tad, yes.

0:25:460:25:48

-But you're still happy to get it?

-Yes, I'm really happy with this.

0:25:480:25:52

You know, sometimes you get a good feeling about a project.

0:25:520:25:55

I really like the shape of the flat, I love the location

0:25:550:25:58

so it ticks a lot of boxes for me.

0:25:580:26:00

Well, I agree the location is a tick as far as box-ticking goes,

0:26:000:26:04

but for the rest, well, it was rather boxy.

0:26:040:26:08

But Alex didn't seem in the least discouraged.

0:26:080:26:11

My intention is for me to redevelop this,

0:26:170:26:20

convert it into a two-bedroom space cos I think

0:26:200:26:23

I can kind of squeeze that out of the floor space that we have

0:26:230:26:26

and to move into it and enjoy the fruits of my labour.

0:26:260:26:30

Oh, great.

0:26:300:26:31

With a budget of £60,000,

0:26:340:26:36

Alex was aiming to create his Chelsea pad in eight to ten weeks.

0:26:360:26:40

It was five months later when we returned.

0:26:400:26:42

MUSIC: "Imagination" by Belouis Some

0:26:420:26:45

# Imagination could make a man out of you... #

0:26:450:26:49

Wow, look at that.

0:26:490:26:51

# Imagination could make me love you, too

0:26:510:26:55

# Imagination is all I want from you... #

0:26:550:27:01

This basement flat is now every inch

0:27:010:27:03

the high-end Chelsea pad it needed to be.

0:27:030:27:06

And every inch of the place has been put to work.

0:27:060:27:10

Where the corridor used to be is a high spec kitchen.

0:27:100:27:13

The bedroom, which was dark and dingy, is now bright and welcoming.

0:27:140:27:18

And it's no longer a one-bedroom flat.

0:27:190:27:22

Alex has managed to use that awkward corridor space to create

0:27:220:27:25

a second bedroom and a shower room.

0:27:250:27:28

However, hang on. What happened to his plans for an en-suite?

0:27:280:27:33

In the initial plans for this flat,

0:27:330:27:36

I wanted to squeeze in two bedrooms and a bathroom and an en-suite.

0:27:360:27:41

Looking at the place closely and the size

0:27:410:27:44

and talking with some local agents, I was advised against that

0:27:440:27:48

so I stuck with a two-bedroom layout with just one bathroom, which

0:27:480:27:52

allowed a bit more space to be carved up and given to the living space.

0:27:520:27:56

I think it was a wise decision.

0:27:590:28:01

And Alex considered all his options

0:28:010:28:03

when it came to using the space wisely.

0:28:030:28:05

One of the things I decided to try was underfloor heating.

0:28:070:28:11

I wanted to make use of floor space as much as possible

0:28:110:28:14

and do away with fixtures and fittings

0:28:140:28:17

so that's something that's worked out quite well.

0:28:170:28:20

And one of the things that I was quite happy with is

0:28:200:28:23

the use of the original hallway, widening that out a bit

0:28:230:28:26

and turning that into a really functional kitchen.

0:28:260:28:29

I wanted to make sure that it was bright and usable.

0:28:290:28:33

Well, I think that objective has been achieved.

0:28:350:28:38

The kitchen has the high spec detail it needed.

0:28:380:28:42

And that attention to detail, like the lighting

0:28:420:28:45

and the new sash windows, all give the flat an expensive feel.

0:28:450:28:49

Does this mean that his £60,000 budget is a distant memory?

0:28:490:28:53

We ended up spending £55,600.

0:28:530:28:58

I am impressed that he managed to achieve this finish for that budget.

0:28:580:29:02

So far, he's spent just under £642,000

0:29:020:29:06

creating this two-bedroom flat.

0:29:060:29:08

Will two agents think he's done enough to make

0:29:080:29:10

a splash on the demanding Chelsea property market?

0:29:100:29:13

Wow.

0:29:130:29:14

When I saw this property the first time around,

0:29:140:29:16

it had so much potential

0:29:160:29:19

but now it's actually been realised.

0:29:190:29:22

The property itself, the change of the layout,

0:29:220:29:25

the attention to detail, it's absolutely stunning.

0:29:250:29:28

The first impressions are extremely good,

0:29:280:29:30

it's really got the wow factor.

0:29:300:29:32

There's little touches like the light in the bathroom,

0:29:320:29:36

very good cupboard space which often is missing, unfortunately...

0:29:360:29:41

So, it looks like it has absolutely everything.

0:29:410:29:43

My particular favourite is the kitchen area and in particular,

0:29:430:29:47

the granite worktop.

0:29:470:29:48

I love the way that you get the light sparkling throughout the stone.

0:29:480:29:52

Also, just the attention to detail,

0:29:520:29:53

the plants just work really well, and the whole area is just beautiful.

0:29:530:29:57

Sounds like a thumbs up to me.

0:29:570:29:59

So will the agents' enthusiasm for this property

0:29:590:30:02

be reflected in the retail figures?

0:30:020:30:04

For rental, I think this property could achieve between

0:30:040:30:07

£2,850 to £3,000 per calendar month.

0:30:070:30:12

I would expect a rental price of £3,000 to £3,600 per calendar month.

0:30:120:30:18

That would mean a yield of between 6% and 7%.

0:30:180:30:22

As Alex is intending to live in the flat, he will, I'm sure,

0:30:220:30:26

be more interested in the resale figures.

0:30:260:30:29

We would expect a sale price of £925,000.

0:30:290:30:34

For sale, I would value this property around the £1 million mark.

0:30:340:30:38

That means a potential pre-tax profit

0:30:380:30:41

of a whopping £283,000 to £358,000.

0:30:410:30:47

I think the £1 million mark is very generous.

0:30:470:30:50

I personally think it's more in the mid-900,000.

0:30:500:30:53

With rewards of that size on offer, does Alex have any advice

0:31:020:31:05

for potential buyers at property auctions?

0:31:050:31:09

The key thing is, I suppose, to

0:31:090:31:11

understand the area or the market that you're buying the property for.

0:31:110:31:14

The tricky thing with auctions is you always come away thinking

0:31:140:31:17

you've paid the highest price in the room, which you have,

0:31:170:31:20

so you don't really feel like you've got a bargain, as such.

0:31:200:31:23

But in hindsight, in this particular scenario,

0:31:230:31:26

I'm quite pleased with having secured this property.

0:31:260:31:29

Now, we leave behind cool, urban pads and the buzz of the city

0:31:320:31:37

and visit a slightly more tranquil setting.

0:31:370:31:41

I'm in the handsome and upmarket

0:31:410:31:43

market town of Sandbach, in south east Cheshire.

0:31:430:31:47

A lovely spot, what's known as a dormitory town.

0:31:470:31:50

Basically, people sleep here and then get easy access

0:31:500:31:53

to the motorway network to places like Manchester,

0:31:530:31:57

Stoke-on-Trent and Crewe.

0:31:570:31:58

You know what? It is lovely.

0:31:580:32:00

As well as the Elizabethan market,

0:32:010:32:04

the town square also boasts two Anglo-Saxon crosses

0:32:040:32:07

dating from the 9th century,

0:32:070:32:10

depicting dragons, amongst other things.

0:32:100:32:12

Fascinating.

0:32:120:32:14

So what property delights bring me here today?

0:32:140:32:17

Well, on this road, not too far from the town centre,

0:32:170:32:21

is this two-bedroomed mid terrace

0:32:210:32:24

at a guide price of £65,000.

0:32:240:32:27

Looks a little bit grubby on the outside but you know what they say?

0:32:270:32:31

Sometimes it's really good to go from the worst house

0:32:310:32:33

on a good street.

0:32:330:32:35

And as streets go, it's a busy one.

0:32:350:32:38

It's a main route to the town centre.

0:32:380:32:40

That's not going to be for everyone.

0:32:400:32:42

So, so far, the outside doesn't exactly excite me.

0:32:420:32:46

Here's hoping the inside is a bit better.

0:32:460:32:48

So, what've we got? Oh, hmm.

0:32:490:32:52

Kind of a tiled floor, not the most welcoming and warming

0:32:520:32:56

and it does bring up to question all sorts of damp issues

0:32:560:32:58

which you'd want to check out.

0:32:580:33:00

Big bay window which is nice, although it is looking out

0:33:000:33:03

onto the road so double glazing definitely necessary.

0:33:030:33:07

But look at the angle over there. That wall is sort of...huh.

0:33:070:33:12

Hmm, it's going to make fitting furniture kind of fun(!)

0:33:120:33:15

But that's the good bit, actually,

0:33:150:33:17

cos come towards the rear of the property here and a tiny kitchen,

0:33:170:33:20

again with that angled wall, an under-stairs cupboard

0:33:200:33:24

and then stairs up to the bedrooms.

0:33:240:33:27

I can't quite put my finger on what this room would be.

0:33:270:33:32

What it is at the moment is access to the rear.

0:33:320:33:34

Laid mostly to...well, concrete, at the moment.

0:33:360:33:40

The always comedic outside toilet,

0:33:420:33:46

very useful if you're doing some gardening or here's an idea,

0:33:460:33:49

what do we think about extending that

0:33:490:33:51

building across the width of the house here to create much

0:33:510:33:54

needed space in that kitchen area, or this area?

0:33:540:33:58

Single story extension,

0:33:580:33:59

you could do it within permitted development rules.

0:33:590:34:02

You'd have to check, you have got a few issues here because there's

0:34:020:34:06

obviously some drainage, sewerage or whatever, flowing across here.

0:34:060:34:09

So you'd have to factor that into your plans.

0:34:090:34:12

But other than that, I think it would be a way

0:34:120:34:14

of sorting out what is actually a bit of a iffy downstairs.

0:34:140:34:18

Let's hope the upstairs is a bit better.

0:34:180:34:20

There's a lot of concrete here,

0:34:210:34:23

on the ground and the boundary walls, too.

0:34:230:34:26

I really do want to take a jackhammer to it.

0:34:260:34:28

MUSIC: "Break Up The Concrete" by Pretenders

0:34:280:34:30

# Break up the concrete, break up the concrete... #

0:34:300:34:34

It's not pretty and neither is the paintwork.

0:34:340:34:37

And then, weirdly,

0:34:370:34:38

there is no boundary between the next door house.

0:34:380:34:41

It's all a bit of a mess, really.

0:34:410:34:43

I'm hoping that outdoor loo isn't the only toilet in the house,

0:34:430:34:47

although the way things are shaping up, I wouldn't be surprised.

0:34:470:34:51

This house needs a lot of attention,

0:34:510:34:53

not least because of the signs of damp.

0:34:530:34:55

Useful to have that window there,

0:34:570:34:59

throws lots of light onto the stairs which is good

0:34:590:35:01

and I like the floorboards, they'd be nice stripped back.

0:35:010:35:04

Although, whenever you strip back floorboards on an upstairs floor,

0:35:040:35:07

you've got to consider the people downstairs cos

0:35:070:35:09

lots of clumping around isn't good.

0:35:090:35:12

But this is looking positive.

0:35:120:35:14

You've got the bathroom and loo here, so thankfully it's not

0:35:140:35:17

just the only that's outside that you have to cope with.

0:35:170:35:20

Looks to be in OK condition,

0:35:200:35:22

but it's in the right place, which is good.

0:35:220:35:25

Nice sized front bedroom, smaller bedroom towards the back

0:35:250:35:29

but compared to the downstairs, the upstairs is actually...

0:35:290:35:32

..a delight.

0:35:340:35:36

Upstairs is a delight, downstairs...a nightmare.

0:35:360:35:39

But at least I'm beginning to see some potential.

0:35:390:35:42

At least there's a bathroom.

0:35:420:35:44

Not my choice of colour, but it's a fair size.

0:35:440:35:48

But on the downside, there are definitely more signs of damp.

0:35:480:35:51

Well, here in the main bedroom, more of those crazy angles but I'm more

0:35:520:35:56

concerned about some serious...

0:35:560:35:59

signs of damp on this front wall here.

0:35:590:36:04

Now, properties aren't that complicated.

0:36:040:36:06

There's usually some fairly basic reason

0:36:060:36:08

why that kind of stuff is happening.

0:36:080:36:10

It must either be something to do with the roof

0:36:100:36:13

or penetrating damp coming through the wall.

0:36:130:36:16

Let's explore.

0:36:160:36:17

Thought so. Look at that.

0:36:190:36:21

At the end of the guttering there, you can see there's supposed

0:36:210:36:24

to be a pipe that links the gutter to the downspout.

0:36:240:36:27

It's missing, which means that the water will basically just pour onto

0:36:270:36:31

this wall here and after a period of time, it'll just penetrate through.

0:36:310:36:36

There you go, open and shut case.

0:36:360:36:39

Told ya.

0:36:390:36:41

Unfortunately, this property has been lying empty for some years

0:36:450:36:48

so no-one's been able to deal with the general maintenance.

0:36:480:36:52

This is the sort of thing that costs hardly anything to keep

0:36:520:36:55

maintained but if ignored, can lead to expensive repairs.

0:36:550:36:59

What does a local estate agent think of this house

0:37:010:37:04

that was guided at £65,000?

0:37:040:37:07

The layout is interesting. It needs quite a lot of work doing to it.

0:37:070:37:12

The property needs a general update, typically new kitchen,

0:37:120:37:15

new bathroom and general decoration throughout.

0:37:150:37:18

You know, it's certainly a challenging project,

0:37:180:37:20

but the end result could be a very nice house.

0:37:200:37:23

After the problems have been fixed and the house has been

0:37:230:37:26

refurbished, how much does the agent think it could be valued at?

0:37:260:37:30

When the property is completed, the value

0:37:300:37:33

would be £115,000 to £120,000.

0:37:330:37:37

And the rental income it could produce?

0:37:370:37:39

I feel the rental value will be £525 per calendar month.

0:37:390:37:44

Well, there's a few issues,

0:37:450:37:46

but I think this place definitely has that all important potential.

0:37:460:37:51

And for £65,000 guide price, yeah.

0:37:510:37:55

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

0:37:550:37:57

96, good location, Sandbach, South Cheshire.

0:37:570:38:01

What shall we say for this one?

0:38:010:38:03

What's this, 40,000 to start me here?

0:38:030:38:05

38, then, can we get it going...

0:38:050:38:06

38 bid, thank you. At £38,000, 38,000.

0:38:060:38:10

40, thank you. At 40,000.

0:38:100:38:12

42? 42, 44, 46...

0:38:120:38:15

Keen interest on the auction day and we rejoin the bidding at 69,000.

0:38:150:38:20

New bidder, far left. 69,000.

0:38:210:38:24

70, 71.

0:38:240:38:26

72. 73.

0:38:260:38:29

74.

0:38:290:38:31

75. Nope?

0:38:310:38:34

At 75,000 then, far left at £75,000.

0:38:340:38:38

76 anywhere else?

0:38:380:38:40

76, back in. 77?

0:38:400:38:44

78 on the back row? 78.

0:38:440:38:47

79. 80?

0:38:470:38:51

79 then, far left corner at £79,000.

0:38:520:38:56

80 anywhere else? He's back in, 80.

0:38:560:38:59

81.

0:39:010:39:02

Sure? 81, once. 81, twice.

0:39:040:39:07

Third and last time, far corner, 81,000...

0:39:070:39:11

Sold to you, sir. Well done.

0:39:110:39:13

Buying the house for 81,000 was Lee and his mother, Helen,

0:39:130:39:16

who's just hidden from view.

0:39:160:39:18

Lee lives locally and runs a construction and landscaping company

0:39:190:39:23

specialising in patios and driveways

0:39:230:39:25

and he dabbles in property developing.

0:39:250:39:27

I met him back at the house to find out more.

0:39:290:39:32

-Lee, great to meet you.

-Yeah.

-Congratulations.

-Thank you.

0:39:320:39:35

Tell me why you wanted to buy this place.

0:39:350:39:37

Well, me mum came with me to the auction

0:39:370:39:41

-and she'd actually found the property.

-Right.

0:39:410:39:44

Sometimes we work together on small projects.

0:39:440:39:48

She came to me and actually said,

0:39:480:39:50

"I've found a property I'm interested in.

0:39:500:39:52

"Do you want to come and have a look at it?"

0:39:520:39:54

-So it was a collaboration between you and your mum?

-Yeah.

0:39:540:39:57

Lee's mum, Helen, will provide the capital.

0:39:590:40:02

Lee will carry out the work and they'll split any profits 50/50.

0:40:020:40:07

What was it that you both liked about the place?

0:40:070:40:10

We liked the position of it because we know the area,

0:40:100:40:12

we're just up the road.

0:40:120:40:13

It hadn't been lived in for seven years, which is

0:40:130:40:15

always what I like because you get them for a better price.

0:40:150:40:19

And obviously, with being a builder, there's more profit in it,

0:40:190:40:22

hopefully, at the end of the day.

0:40:220:40:24

What do you think the challenges here are then?

0:40:240:40:26

Well, basically we've just got to start from scratch.

0:40:260:40:30

Just go through it and start by taking the plaster off the walls,

0:40:300:40:33

downstairs putting a new damp proof course in, rewiring,

0:40:330:40:37

re-plumbing, all new floorings and double glazing.

0:40:370:40:41

We're going to transfer the kitchen into this room where we're stood

0:40:410:40:44

because the kitchen is too small and at a funny angle in that room...

0:40:440:40:49

and perhaps change that either into a dining room

0:40:490:40:51

or a snug or something like that.

0:40:510:40:53

Perhaps put a small porch or something linking it

0:40:530:40:56

to the outside toilet to make a downstairs toilet which is usable.

0:40:560:41:00

So talk me through your numbers then.

0:41:000:41:02

How much are you going to spend?

0:41:020:41:03

-We've estimated to spend sort of about £20,000 on it.

-OK.

0:41:030:41:06

So we're hoping to get it all complete for £100,000

0:41:060:41:10

and I'll make an allowance of my time in that

0:41:100:41:13

and obviously I've got employees which I've got to pay out of that.

0:41:130:41:16

Right.

0:41:160:41:17

So there'll be a team of people working on it

0:41:170:41:19

and then any profits at the end, we'll split between us.

0:41:190:41:24

No doubt Lee's landscaping experience will come in handy

0:41:240:41:27

and he'll carry out the jobs with his usual team of workers.

0:41:270:41:32

What is the time scale for getting it sorted, then?

0:41:320:41:35

Well, normally I always have a quiet spell in January

0:41:350:41:37

when I look for a project to do, you know,

0:41:370:41:40

and I'm going to come here and convert this, should take about

0:41:400:41:44

six weeks from start to finish, if I'm on it fulltime.

0:41:440:41:47

And you're talking about not starting it till January?

0:41:470:41:50

-That's right, it'll be just sat here.

-Really?

0:41:500:41:52

Won't be starting it till winter now.

0:41:520:41:54

-Right, well, listen, congratulations.

-Thank you.

0:41:540:41:57

Good luck with it and we look forward to seeing how you get on.

0:41:570:41:59

OK, thank you.

0:41:590:42:01

Well, Lee certainly seems to have the right idea when it comes

0:42:010:42:04

to sorting this place out, but I've just got a couple of niggles.

0:42:040:42:07

One is the finances, not a lot of money in it,

0:42:070:42:11

especially when you factor in him paying himself.

0:42:110:42:13

And then that timescale, not starting it for, what,

0:42:130:42:17

five, six months?

0:42:170:42:19

As we say in property, time is money and that is a long time.

0:42:190:42:22

Will he really leave it? You'll find out later in the show.

0:42:240:42:27

Well, time and tide wait for no man. The months have passed.

0:42:310:42:35

Have those properties been the subject of a DIY extravaganza

0:42:350:42:39

or a professional job?

0:42:390:42:41

Have they remained exactly the same?

0:42:410:42:43

The moment of truth... Let's find out.

0:42:430:42:46

It was in the Kent costal town of Dover where we first saw

0:42:480:42:52

a two-bedroom mid terrace house spread over three floors.

0:42:520:42:56

It was tired and dated and needed a complete overhaul.

0:42:560:43:00

There appeared to be nothing particularly special

0:43:000:43:03

about the property but...

0:43:030:43:06

Well, this is where it gets interesting.

0:43:060:43:08

Because this property comes with full planning permission from

0:43:080:43:12

Dover District Council to convert this whole place into two flats.

0:43:120:43:16

Ah, so suddenly my developer's eyes lit up.

0:43:170:43:20

Not only could you get a two-for-one offer here,

0:43:200:43:23

but the all-important planning permission was in place.

0:43:230:43:26

A deal like this was too good to turn down for experienced

0:43:270:43:31

property developer Debbie, who buys and renovates

0:43:310:43:33

properties on behalf of clients she has both here in the UK and abroad.

0:43:330:43:38

Now, so many developers that I meet go,

0:43:380:43:40

"Yeah, yeah, got the plans, rubbish, don't want use those.

0:43:400:43:42

"We're going to change it, we're going to put an extra room in here,

0:43:420:43:45

"build an extension out there..."

0:43:450:43:47

So you know, are you happy with those plans?

0:43:470:43:48

Well, funny you should say that.

0:43:480:43:51

We are half-thinking of doing a small extension from the outside store

0:43:510:43:56

across to the other wall there which would give us a much bigger kitchen.

0:43:560:43:59

So in terms of space, it really would work.

0:43:590:44:02

But it's the planning and it's the timing and it's all of that

0:44:020:44:04

that's going to not allow you to crack on with this project.

0:44:040:44:07

Well, that's what we've got to add in to the equation.

0:44:070:44:10

So Debbie was going to need to work the numbers on a property

0:44:100:44:13

that her client had bought for 86,000

0:44:130:44:16

and had given her a 45,000 grand budget for the conversion work.

0:44:160:44:20

And now, five months later,

0:44:220:44:23

we're back to see the sum of all Debbie's endeavours.

0:44:230:44:26

Looks promising, but is it one house...

0:44:280:44:31

or two flats?

0:44:310:44:33

We've divided the property into two flats so we've taken the lower

0:44:330:44:38

set of stairs out and that is now a self-contained one-bedroom flat.

0:44:380:44:44

Just by losing the stairs

0:44:490:44:50

and using some of the good-sized kitchen space,

0:44:500:44:53

Debbie has managed to incorporate a rather sleek

0:44:530:44:55

and contemporary shower room.

0:44:550:44:57

While the kitchen has certainly gone up a notch or two.

0:45:010:45:05

And the lounge-cum-bedroom is now a whole lot better without the,

0:45:050:45:08

um, holes in the walls.

0:45:080:45:10

And this property is now a two-bedroom maisonette,

0:45:120:45:14

so we've put the kitchen where the bathroom was.

0:45:140:45:18

Hooray.

0:45:200:45:21

Now that is such a better use of the over-large bathroom space.

0:45:210:45:25

It shows how big it was.

0:45:250:45:27

Not only does it have a reasonably-sized kitchen in it now,

0:45:270:45:30

but with one of the stairwells removed,

0:45:300:45:32

there's still room for the bathroom in the corner.

0:45:320:45:35

The lounge is now right where it would have been initially,

0:45:370:45:40

and the bedrooms are pretty much the same, as well.

0:45:400:45:43

And with the downstairs stairwell gone,

0:45:440:45:47

that lounge is much more of a room than a corridor.

0:45:470:45:50

The two bedrooms make this a good-sized home.

0:45:530:45:55

But what happened to the plan to make the downstairs flat bigger?

0:45:590:46:02

Initially, it was so tempting to put another room on the ground floor

0:46:040:46:07

but after it was purchased, it's money that's just sitting there,

0:46:070:46:11

really, and so we needed to get on and get the job done.

0:46:110:46:15

Even if it hasn't got a bigger kitchen,

0:46:150:46:17

the ground floor flat does have the added bonus of a great garden

0:46:170:46:21

with a patio area, which is almost like an extra room.

0:46:210:46:24

Both flats have parking spaces at the rear but even without

0:46:260:46:29

an extension, it was a lot of work to convert the house into two flats.

0:46:290:46:34

So how involved was Debbie in the process?

0:46:340:46:37

The work has all been done by a guy called Ben,

0:46:370:46:40

who's a local guy to me where I live

0:46:400:46:42

and he took on board pretty much the

0:46:420:46:44

project management side of this as well,

0:46:440:46:46

and my role was really quite restricted in this case.

0:46:460:46:50

With several other projects on the go,

0:46:500:46:52

Debbie was reliant on builder Ben to come up with the goods

0:46:520:46:56

and he certainly seems to have come up trumps here.

0:46:560:46:59

So how was it, managing such a comprehensive conversion for Debbie?

0:46:590:47:03

It's been absolutely great, really.

0:47:030:47:06

Yeah, enjoyed working for her, she's given me quite a free rein, really.

0:47:060:47:11

And that free rein included choosing a lot of the colours...

0:47:160:47:20

in particular, the striking red of the shower room

0:47:200:47:23

in the downstairs flat.

0:47:230:47:24

So come on, Ben, how did that come about?

0:47:240:47:27

It really came from looking for the floor.

0:47:270:47:29

I was looking at some lino and saw this lovely, you know,

0:47:290:47:33

lipstick red one and it gave us the idea for the contemporary style

0:47:330:47:38

so I think the chrome, the red and the white go quite well together.

0:47:380:47:42

So, with Ben adding the splash of colour,

0:47:470:47:49

it was down to Debbie to splash the cash on her investors' behalf.

0:47:490:47:53

So how much has she spent?

0:47:550:47:57

45,000, pretty much on the dot.

0:47:570:48:00

And that £45,000 spend on top of the £86,000 purchase price,

0:48:030:48:08

takes the investors' total cost to £131,000 without taxes and fees.

0:48:080:48:13

So does it all add up to a good deal?

0:48:150:48:18

What do two local estate agents think?

0:48:180:48:20

This property has been converted really well.

0:48:220:48:25

It's now into two very neat self-contained apartments.

0:48:250:48:29

Very stylish, very, very nicely done.

0:48:290:48:33

Quite funky in places, which I like, particularly in the bathroom

0:48:330:48:37

and the kitchen's splashbacks are quite nice colours.

0:48:370:48:40

With the rental market in Dover being very buoyant, Debbie's

0:48:410:48:45

investors have decided to hang onto the flats and rent them out.

0:48:450:48:49

But how much capital growth could

0:48:500:48:52

they see on their 131,000 investment?

0:48:520:48:56

The resale values of the apartments

0:48:560:48:59

now are £45,000 to £50,000 for the studio flat

0:48:590:49:04

and £70,000 to £75,000 for the two-bedroom flat upstairs.

0:49:040:49:09

The lower ground floor would retail at approximately £50,000 to £55,000.

0:49:090:49:15

The upper flat would retail at £65,000 to £70,000.

0:49:150:49:20

So with the current value of the two flats combined

0:49:200:49:22

being between £110,000 and £130,000,

0:49:220:49:27

there really isn't any money to be made on the resale market.

0:49:270:49:30

So rental figures are key to making sure this works

0:49:300:49:33

as an investment vehicle.

0:49:330:49:36

Rental values here now are £400 per calendar month

0:49:360:49:39

for the studio apartment

0:49:390:49:41

and £600 per calendar month for the two-bedroom apartment.

0:49:410:49:46

The lower ground floor flat would rent at £450 per calendar month

0:49:460:49:51

whilst the upper flat would rent at £550 per calendar month.

0:49:510:49:56

We were thinking £350 to £400 for the one-bed

0:49:560:50:00

and sort of £450 to £550 for this one, so that's not far off.

0:50:000:50:06

A total rental income of £1,000 per calendar month from both flats

0:50:070:50:13

would generate a yield of just above 9%. Now that's not a bad return.

0:50:130:50:16

So are there more properties in the pipeline for Debbie?

0:50:160:50:20

Well, I bought two more at the beginning of this week.

0:50:210:50:25

I'm a glutton for punishment.

0:50:250:50:27

So no, I just move on to the next and just keep going, really.

0:50:290:50:32

Yeah, I've got ten projects on the go at the moment,

0:50:320:50:36

being developed into about 25 flats altogether in different

0:50:360:50:39

areas of Kent and South East London.

0:50:390:50:41

So, yeah, I'm busy.

0:50:420:50:44

And someone else who was busy was builder and landscaper Lee,

0:50:480:50:52

who had bought, in the summer of 2012, a two-bed mid terrace property

0:50:520:50:56

in Sandbach, Cheshire, for £81,000 as a joint project with his mum.

0:50:560:51:01

MUSIC: "I Will Wait" by Mumford & Sons

0:51:010:51:03

Having lain empty for over seven years,

0:51:030:51:05

this property was now desperately in need of attention.

0:51:050:51:09

But it seemed it would have to wait even longer.

0:51:090:51:11

# And I will wait, I will wait for you

0:51:120:51:16

# And I will wait... #

0:51:190:51:21

What is the timescale for getting it sorted, then?

0:51:210:51:23

Well, normally I always have a quiet spell in January

0:51:230:51:27

when I look for a project to do.

0:51:270:51:28

And you're talking about not starting it till January?

0:51:280:51:31

-That's right, yeah, it'll be just sat here.

-Really?

0:51:310:51:33

-Won't be starting it till winter now.

-Right.

0:51:330:51:35

So, a little patience was called for before Lee would start work.

0:51:350:51:38

MUSIC: "Patience" by Take That

0:51:380:51:40

# Just have a little patience... #

0:51:400:51:43

And with a budget of £22,000 to £23,000,

0:51:430:51:47

he had a comprehensive refurbishment planned.

0:51:470:51:50

# I really want to start over again... #

0:51:500:51:55

And now, ten months on, with the winter behind us,

0:51:550:51:59

we return with Lee to see if it's been worth the wait.

0:51:590:52:02

Certainly, the outside looks fresher and more vibrant

0:52:110:52:14

and its general curb appeal has gone up a notch or two.

0:52:140:52:18

And inside?

0:52:200:52:21

Wow, that's not bad, either.

0:52:330:52:34

It's been replastered, rewired,

0:52:370:52:40

damp-proofed, re-plumbed...

0:52:400:52:42

The lot.

0:52:420:52:44

And that sorry looking kitchen?

0:52:440:52:47

Well, it's not so sorry now.

0:52:470:52:49

I had planned to move the kitchen into the other room but after

0:52:490:52:53

a good design, I found that there's actually plenty of room in here.

0:52:530:52:58

I've incorporated granite-style worktops

0:52:580:53:01

and a new designer white sink.

0:53:010:53:04

Lee's right, this space is actually more than adequate.

0:53:040:53:06

And anyway, it would have been a shame to have lost

0:53:060:53:09

the space in the back reception room.

0:53:090:53:12

But how's upstairs looking?

0:53:120:53:14

Crisp, clean, bright and modern.

0:53:320:53:35

Remember that garden that was more concrete than grass?

0:53:400:53:43

Well, there's no sign of a lawn but it does look a million times better.

0:53:450:53:49

So it really does seem like it was worth the wait.

0:53:490:53:53

# And have a little patience... #

0:53:540:53:58

Having my own landscaping company has enabled me

0:53:590:54:02

to transform the back of the house.

0:54:020:54:04

I installed a new raised bed at the back with new plants in,

0:54:040:54:07

new fencing and a beautiful new Indian-style patio.

0:54:070:54:11

I've repainted all the back of the house, new rainwater goods.

0:54:110:54:14

But the biggest transformation for me is the outside toilet.

0:54:140:54:19

I've blocked up the original entrance and then re-rendered it.

0:54:190:54:24

And that previously outside toilet has now been incorporated

0:54:240:54:29

into the house to create a downstairs cloak room.

0:54:290:54:32

But is this all Lee's handiwork?

0:54:320:54:36

I've done about 80% myself.

0:54:360:54:39

I brought in trades for the electrics and the plastering.

0:54:390:54:44

So Lee's been busy.

0:54:450:54:46

But this was a joint project between him and his mum.

0:54:460:54:50

So is she happy with the outcome?

0:54:500:54:53

My mum's very pleased with the property and how it's turned out.

0:54:530:54:57

She's actually done the decoration on the property herself

0:54:570:55:01

and added a few little finishing touches.

0:55:010:55:05

And hopefully we'll get a good market price and split the profit.

0:55:050:55:10

Ah, a profit. But will there be any?

0:55:100:55:14

That all depends on how much they spent here.

0:55:140:55:16

We've reckoned it up

0:55:190:55:20

and I think we've spent about 21,000 on renovating it.

0:55:200:55:25

Well, a £21,500 spend on top of a £81,000 purchase price

0:55:280:55:33

takes their total cost to £102,500.

0:55:330:55:36

So has it been time and money well spent?

0:55:360:55:40

What did two local estate agents think?

0:55:400:55:42

Having seen it before, I think it's a fantastic job.

0:55:470:55:51

They've done it to a really high specification

0:55:510:55:53

and I'm impressed with the overall condition.

0:55:530:55:55

It's a great terraced property.

0:55:550:55:57

Nice finish, superb presentation

0:55:570:55:59

and certainly would make the perfect first-time buyer home.

0:55:590:56:01

The rear garden is particularly nice.

0:56:010:56:03

I think they've done a really good job.

0:56:030:56:05

It's enclosed, it's private and easy to maintain.

0:56:050:56:08

Lee and his mum hope to sell this property on but if it didn't sell

0:56:080:56:13

then they would have to consider the rental market.

0:56:130:56:16

My recommended rental value would be £525 per calendar month

0:56:160:56:23

to £550 per calendar month.

0:56:230:56:26

The rental market is really strong in this area so in my opinion,

0:56:260:56:29

this property would let for a figure of £575 per calendar month.

0:56:290:56:32

Yes, that's a good monthly value,

0:56:320:56:35

although we are going to put it on the market for sale.

0:56:350:56:40

Yes, even rental values of £525 per calendar month would generate

0:56:400:56:44

a yield of above 6%.

0:56:440:56:47

But ideally, this was a buy, do up and sell project,

0:56:470:56:51

so having invested £102,500 in the house,

0:56:510:56:55

is there a profit to be had?

0:56:550:56:57

My recommended sale value for the property would be

0:56:590:57:03

£125,000 to £130,000.

0:57:030:57:07

In my opinion, this property will sell for offers over £125,000.

0:57:070:57:11

That's excellent, that's what I was hoping for and we've already

0:57:110:57:15

put it on the market at £134,950

0:57:150:57:18

hoping to achieve £130,000.

0:57:180:57:21

And those resale values could see a potential pre-tax profit

0:57:220:57:26

of between £22,500 and £27,500.

0:57:260:57:29

Not bad.

0:57:290:57:31

So is Lee, together with his mum, planning more seasonal work?

0:57:310:57:35

I'm very, very busy at the moment, but now me mum's done this one,

0:57:370:57:42

she's eager to get another project on the go

0:57:420:57:45

and she's got one in the pipelines so that'll keep me even busier.

0:57:450:57:49

We'll have lots more auction properties for you

0:57:530:57:55

next time on Homes Under The Hammer.

0:57:550:57:57

-Yes, join us then for more action from the auctions.

-Goodbye.

-Goodbye.

0:57:570:58:01

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