0:00:02 > 0:00:04Hello. Now, everyone has their dream home -
0:00:04 > 0:00:06be it a cool urban pad or a country cottage.
0:00:06 > 0:00:08Or perhaps you're a little unusual
0:00:08 > 0:00:11and prefer a converted fire station or a church perhaps.
0:00:11 > 0:00:15The thing is, you never know quite what is going to come up at the auctions.
0:00:15 > 0:00:18Maybe your dream home is just there waiting for you.
0:00:43 > 0:00:47Going to an auction and bidding can be such a daunting prospect,
0:00:47 > 0:00:49but getting a property at the right price -
0:00:49 > 0:00:51well, it certainly makes up for it.
0:00:51 > 0:00:55Yes, so what inspired the buyers on today's show? Let's take a look.
0:00:58 > 0:01:04This two-bed flat in Leytonstone, London is jammed between two shops.
0:01:04 > 0:01:06Hello, any service?
0:01:07 > 0:01:08In Devon, the water's fine
0:01:08 > 0:01:12but some planning laws could mean sailing into trouble.
0:01:12 > 0:01:15And, in that case, your plans have to change a bit.
0:01:17 > 0:01:22And we go back to 2007 to Ramsgate, where these former police cells
0:01:22 > 0:01:25were more like a swimming pool. It's damp, really badly damp.
0:01:25 > 0:01:27We're talking water on the floor here.
0:01:28 > 0:01:30All these properties have been sold at auction.
0:01:30 > 0:01:32We'll find out who bought them
0:01:32 > 0:01:35and how much they paid when these homes went under the hammer.
0:01:35 > 0:01:36Sold.
0:01:43 > 0:01:46Leytonstone in London has seen a lot of regeneration
0:01:46 > 0:01:48thanks to the Olympic Park.
0:01:49 > 0:01:52Famous faces from this area include Damon Albarn
0:01:52 > 0:01:54and Sir Alfred Hitchcock.
0:01:58 > 0:02:02The tube station has many mosaics depicting some of his films,
0:02:02 > 0:02:04like The 39 Steps and Rear Window.
0:02:05 > 0:02:08Will the property be stuff of nightmares?
0:02:08 > 0:02:10Well, it's a two-bedroom flat, it's in here
0:02:10 > 0:02:15and it had a guide price of £85,000. I'm going to have a look around.
0:02:19 > 0:02:23So, straight into the flat and in here it smells freshly painted.
0:02:23 > 0:02:29Long, thin, white corridor which leads straight into a lounge area.
0:02:29 > 0:02:31A little bit disappointing actually.
0:02:31 > 0:02:34It really feels like it's just been thrown at the back
0:02:34 > 0:02:38of the property and it actually smells a little bit damp in here.
0:02:38 > 0:02:42This is the kitchen area. Hello, any service?
0:02:42 > 0:02:43This is quite a good idea
0:02:43 > 0:02:46because there's nothing much going on in this room,
0:02:46 > 0:02:48so why not have a little cut through to the kitchen?
0:02:48 > 0:02:49Although there's no view.
0:02:49 > 0:02:53That window is completely covered up so, again,
0:02:53 > 0:02:57I feel like we're missing out on looking out onto something.
0:02:57 > 0:03:00It's just got that sort of crammed in feeling.
0:03:00 > 0:03:02And again, a bit botched everywhere.
0:03:02 > 0:03:05Skirting boards just thrown together,
0:03:05 > 0:03:08odd radiators, all a little bit off balance.
0:03:08 > 0:03:10A couple of steps towards the back of the property.
0:03:10 > 0:03:14Now, we do have a bathroom. It's white, which is fabulous.
0:03:14 > 0:03:16A little bit on the small side.
0:03:16 > 0:03:21Through into the bedroom. Now...it's a single.
0:03:21 > 0:03:25It's got a really unusual window - too small for the room.
0:03:25 > 0:03:28In fact, the room is very small.
0:03:28 > 0:03:33And through into the second bedroom, again, very disappointing.
0:03:33 > 0:03:36There you go. You could easily open that up,
0:03:36 > 0:03:41this is just a partition wall, to create one big bedroom.
0:03:41 > 0:03:46Now, standing here, I would like to see one big window at the back
0:03:46 > 0:03:49because it's just not working as it is. Very disappointing.
0:03:49 > 0:03:52Look, a window to the side. Why is the window there?
0:03:52 > 0:03:54It's not working at all.
0:03:54 > 0:04:00And you've got a view out onto a concrete wall and it's so close.
0:04:00 > 0:04:02But the good news is, there's a door,
0:04:02 > 0:04:05so hopefully there's a pretty little garden out here.
0:04:12 > 0:04:14No, it's not a pretty little garden.
0:04:14 > 0:04:19Come on then, let's have a look around. There you go.
0:04:19 > 0:04:24The loo, a bit of corrugated plastic, some paint pots.
0:04:25 > 0:04:30Somebody else's window. That's it. That's your outside space.
0:04:30 > 0:04:33Disappointed? I am.
0:04:34 > 0:04:37Goodness only knows what Mr Hitchcock would
0:04:37 > 0:04:39make from the view from this rear window,
0:04:39 > 0:04:43and it's the windows and lack of natural light throughout this
0:04:43 > 0:04:46place that are my main bugbears.
0:04:46 > 0:04:50The flat is squeezed between two shops, hence the odd layout,
0:04:50 > 0:04:55but an architect or builder could best advise how to use the space.
0:04:55 > 0:04:58About the fresh paint, is it masking any hidden problems?
0:04:58 > 0:05:01And on the subject of professionals,
0:05:01 > 0:05:04we called in a local estate agent to get her opinion.
0:05:04 > 0:05:08I guess she won't be expecting too much as the guide price of 85,000
0:05:08 > 0:05:12is tiny for a London flat of any description.
0:05:15 > 0:05:18We need to change the central heating.
0:05:18 > 0:05:22Completely refurbish the bathroom and the kitchen.
0:05:22 > 0:05:26And, also, the hallway with the bedrooms.
0:05:26 > 0:05:30And the garden at the back needs a lot of attention.
0:05:30 > 0:05:32Well, it does need a lot of work
0:05:32 > 0:05:35but, as the place is pretty tiny, it shouldn't take too long to do.
0:05:35 > 0:05:38What kind of values would you be looking at
0:05:38 > 0:05:40with a guide price of £85,000?
0:05:41 > 0:05:42After refurbishment,
0:05:42 > 0:05:46this property could resale at the market conditions,
0:05:46 > 0:05:52the price range in between £170,000 to £190,000.
0:05:52 > 0:05:55And, on the lettings market conditions,
0:05:55 > 0:05:57it could re-let at a price
0:05:57 > 0:06:02in between £1,050 to £1,150 per calendar month.
0:06:03 > 0:06:07Well, this property is squashed. It's round the back of two shops.
0:06:07 > 0:06:12I find it dark, there is no view, and it needs a total refurbishment.
0:06:12 > 0:06:15Even though it's on the ground floor, well,
0:06:15 > 0:06:18it just has the feeling of a dark basement flat.
0:06:18 > 0:06:22That said, for London, it's got a low guide price
0:06:22 > 0:06:26and it is so close to the Olympic Village.
0:06:26 > 0:06:30So, was it a sprint to the auction or a long jump away?
0:06:30 > 0:06:32Let's find out when it went under the hammer.
0:06:32 > 0:06:36OK. First lot I'll offer you is lot 61, which is in Leytonstone, E11.
0:06:36 > 0:06:39It's a ground floor flat, this one.
0:06:39 > 0:06:42Two bedrooms. Where do you want to start on this? Shall we say 70?
0:06:42 > 0:06:45Start it nice and low. Thank you, standing, I have straightaway.
0:06:45 > 0:06:48You're trying to come in. Can I say 71 on this side?
0:06:48 > 0:06:50At you coming in here, seated? 71, yes. 71.
0:06:50 > 0:06:5272. 72.
0:06:52 > 0:06:5473. 73.
0:06:54 > 0:06:5574.
0:06:55 > 0:06:59The bidding quickly overtakes the £85,000 guide price
0:06:59 > 0:07:04and continues apace to where we rejoin at £111,000.
0:07:04 > 0:07:06111, you're back in. Not giving up.
0:07:06 > 0:07:08112. 113.
0:07:08 > 0:07:09114.
0:07:09 > 0:07:11Give him a nudge? 114?
0:07:12 > 0:07:15Otherwise, standing at £113,000.
0:07:15 > 0:07:18Against you now. 114? 114. 115?
0:07:18 > 0:07:20No? At the front, then, at 114,000.
0:07:20 > 0:07:22115 anywhere else?
0:07:22 > 0:07:25Feel free to come back in. Otherwise, 114 for the first.
0:07:25 > 0:07:28114,000 for the second.
0:07:28 > 0:07:30Third and final time.
0:07:30 > 0:07:31Are we all done at £114,000?
0:07:33 > 0:07:34Sold.
0:07:34 > 0:07:38The successful bidders were Jana, who's originally from Latvia,
0:07:38 > 0:07:41with her husband Bola, and business partner uncle, Chief.
0:07:43 > 0:07:46Jana and her family previously ran a business in Spain
0:07:46 > 0:07:47recycling vegetable oils,
0:07:47 > 0:07:50but the family have now moved over to London
0:07:50 > 0:07:53and are keen to start up a new property developing business.
0:07:55 > 0:07:57- Jana, lovely to meet you. - Nice to meet you, too.
0:07:57 > 0:08:00So, I want to know the story about this property
0:08:00 > 0:08:02- because you didn't view this, did you?- No.
0:08:02 > 0:08:06- You just, literally, bought it on auction day.- Yes, we just er...
0:08:06 > 0:08:09We view another property. We want to bid for it
0:08:09 > 0:08:13but, unfortunately, it was withdrawn from auction.
0:08:13 > 0:08:17And we want to really buy something to start our new business,
0:08:17 > 0:08:22and we bid for what we think is good value and is a good location.
0:08:22 > 0:08:25So you're starting a new business buying and selling property?
0:08:25 > 0:08:29- Yes, we do.- So, the first property you've got is this?- Yes.
0:08:29 > 0:08:31But you didn't do much research. You didn't come and look at it.
0:08:31 > 0:08:35You didn't read the legal pack. You just got excited on the day...
0:08:35 > 0:08:37- Oh, no!- ..and bought this property. - Yes.
0:08:37 > 0:08:40We do research about area,
0:08:40 > 0:08:44but we didn't see legal pack and we didn't see property, but we was looking.
0:08:44 > 0:08:47Tell me how you felt when you walked through that door for the first time.
0:08:47 > 0:08:49Actually, I felt really good.
0:08:49 > 0:08:53There's no major construction problems and I feel lucky.
0:08:53 > 0:08:55But, when you walk in here for the first time,
0:08:55 > 0:08:56it's not quite what you expect.
0:08:56 > 0:09:00It's sort of tucked in between a few shops, at the back,
0:09:00 > 0:09:03not many windows, it's quite dull.
0:09:03 > 0:09:07Yes. You could see, but for money I paid, I think is all right.
0:09:07 > 0:09:11I think is...still in Central London,
0:09:11 > 0:09:13is five minutes from Olympic Village.
0:09:13 > 0:09:17And it's kind of... I like this area, as well.
0:09:17 > 0:09:19But hope it's going to go well.
0:09:19 > 0:09:22Well, Jana's picked well, in terms of location.
0:09:22 > 0:09:25But how will she add value to a property like this?
0:09:25 > 0:09:29I'm going to... We're going to do full renovation.
0:09:29 > 0:09:33We're going to make property look nicer and modern.
0:09:33 > 0:09:36We're going to put new kitchen, new bathroom
0:09:36 > 0:09:38and we're going on knock this wall down
0:09:38 > 0:09:42to have little, like, you know, like a kitchen bar.
0:09:42 > 0:09:45And put lights in the ceilings as well,
0:09:45 > 0:09:48and new floor as well going to be,
0:09:48 > 0:09:51and do everything we can do to make it nicer.
0:09:52 > 0:09:54Everything Jana's outlined will add value,
0:09:54 > 0:09:56but there are limits with a property like this
0:09:56 > 0:09:59and I think the lack of light and rooms without a view
0:09:59 > 0:10:03are the most important and difficult things to deal with here.
0:10:03 > 0:10:05But what are her plans in that respect?
0:10:07 > 0:10:10Oooph...! I don't know yet.
0:10:10 > 0:10:13I honestly... We need to bring, maybe, somebody who,
0:10:13 > 0:10:15like architect or surveyor,
0:10:15 > 0:10:19to just help us with decide what we're going to do.
0:10:19 > 0:10:22Maybe make another window.
0:10:22 > 0:10:23Maybe.
0:10:23 > 0:10:27Again, we was thinking we may do a little bedroom extension as well,
0:10:27 > 0:10:29but it depends.
0:10:29 > 0:10:30We're going to bring surveyor Monday
0:10:30 > 0:10:33and we decide what we're going to do, really.
0:10:33 > 0:10:36- I mean, it's quite interesting. You do have outside space here.- Yes.
0:10:36 > 0:10:39- Even though it currently has a WC outside in the garden.- Yes.
0:10:39 > 0:10:43- And it's good. You have barbecue and toilet straightaway.- Exactly!
0:10:43 > 0:10:47A convenience out there! But you do have outside space.
0:10:47 > 0:10:49And, I think, for the money you paid,
0:10:49 > 0:10:51you can't expect too much more.
0:10:51 > 0:10:52No. No. Is...
0:10:52 > 0:10:55I really like this. I really like property
0:10:55 > 0:10:56and I really like little garden,
0:10:56 > 0:10:59and I think we're going to do very well.
0:11:01 > 0:11:04To help Jana do well, she's bringing in a builder
0:11:04 > 0:11:07to have a look at the property and fix issues like the electrics.
0:11:08 > 0:11:12With a budget of ten grand and a six-week timescale,
0:11:12 > 0:11:15there's only one problem for me.
0:11:15 > 0:11:17Do you think there might be any damp here?
0:11:17 > 0:11:19No, I don't think, really.
0:11:19 > 0:11:22It didn't feel like damp. It didn't smell like damp.
0:11:22 > 0:11:26I know what is damp because once I live in damp apartment -
0:11:26 > 0:11:30It was horrible. But it feels kind of fresh. Is no damp.
0:11:30 > 0:11:31I don't think... I hope so. No.
0:11:31 > 0:11:34Jana, good luck and I hope this property works out for you
0:11:34 > 0:11:38- and it is the start of something very exciting.- Thank you so much.
0:11:38 > 0:11:40- Thank you.- Good luck. - I need it. Thank you.
0:11:41 > 0:11:45Jana took a huge risk buying this without seeing it.
0:11:45 > 0:11:48She really needs to think outside the box with this property.
0:11:48 > 0:11:51It just needs light, it needs windows moving,
0:11:51 > 0:11:54and it feels so hemmed in.
0:11:54 > 0:11:57I want to know how she is going to give it
0:11:57 > 0:12:00that modern, contemporary feel.
0:12:00 > 0:12:02And, the big question...
0:12:02 > 0:12:04Will she add enough value to this property
0:12:04 > 0:12:07to really make it a worthwhile purchase?
0:12:07 > 0:12:11Join me later in the programme and you can see how she gets on.
0:12:14 > 0:12:17From that cramped London flat
0:12:17 > 0:12:20to the wide-open spaces of the English Riviera now.
0:12:20 > 0:12:23Brixham, in Devon, once a thriving harbour town,
0:12:23 > 0:12:28now relies on summer tourists, rather than fish, for its fortune.
0:12:28 > 0:12:30Although, there are still working vessels
0:12:30 > 0:12:33making the most of the beautiful coastline.
0:12:42 > 0:12:47The property I'm here to see is set into the cliffs above Brixham.
0:12:47 > 0:12:50And phew...! Fantastic views!
0:12:50 > 0:12:51Wonderful.
0:12:51 > 0:12:56But, what I'm also very excited about, bizarrely, is this.
0:12:56 > 0:12:58It's a bit of tarmac.
0:12:58 > 0:13:00Yeah... But, it's parking spaces.
0:13:00 > 0:13:02And, in these old-fashioned fishing villages,
0:13:02 > 0:13:06parking is at an absolute premium.
0:13:06 > 0:13:08So, the fact you've got all this, is superb.
0:13:08 > 0:13:11The house itself, well, it's quite interesting.
0:13:11 > 0:13:16One three-bedroomed property, with a one-bedroomed annexe attached.
0:13:16 > 0:13:20Guide price, 275 to 325,000 quid. Let's take a look.
0:13:22 > 0:13:25And, so, first of all, into the annexe.
0:13:25 > 0:13:28So the door into a really nice-sized space.
0:13:28 > 0:13:31And this is sort of like a kitchen-living area
0:13:31 > 0:13:34and it works extremely well. Some nice units here.
0:13:34 > 0:13:36Your cooker, your sink.
0:13:36 > 0:13:40But you're drawn straightaway to that view over the harbour.
0:13:40 > 0:13:43You can certainly imagine spending some time here. Absolutely gorgeous.
0:13:43 > 0:13:45This was built about ten years ago.
0:13:45 > 0:13:48And, you know, the beams thing...
0:13:48 > 0:13:51You either like it or you don't. I think it adds nice character.
0:13:51 > 0:13:53Stairs up to your bedroom and your bathroom there.
0:13:53 > 0:13:57And, then, this is where the old house starts, if you like.
0:13:57 > 0:14:01So, here we are. And it is, yeah, equally nice.
0:14:01 > 0:14:03The whole thing has a really,
0:14:03 > 0:14:06well, almost you-could-move-into-it feel about it.
0:14:06 > 0:14:09There's a few places where you'd want to investigate.
0:14:09 > 0:14:11That looks to me like a bit of damp
0:14:11 > 0:14:13coming through the chimney breast there.
0:14:13 > 0:14:15But, hopefully, nothing too serious.
0:14:15 > 0:14:16Living area over there.
0:14:16 > 0:14:17Stairs up to your bedrooms.
0:14:17 > 0:14:22And, then, over this way to an absolute delight.
0:14:22 > 0:14:25The main kitchen in the property.
0:14:25 > 0:14:28Well, looks speak for themselves.
0:14:28 > 0:14:32Really nice built-in units, some appliances. Really nice.
0:14:32 > 0:14:35Range cooker, probably more for effect than practicalities,
0:14:35 > 0:14:37but you've also got a gas cooker here as well.
0:14:37 > 0:14:39Stone floors.
0:14:39 > 0:14:40I mean, this is lovely.
0:14:42 > 0:14:45The annexe feels modern and light
0:14:45 > 0:14:47and the downstairs kitchen-living room
0:14:47 > 0:14:51lead to one bedroom and a bathroom - all very nice.
0:14:52 > 0:14:56On the outside, well, that cliff face might put some people off.
0:14:56 > 0:14:58And the view at the front has been rather spoilt,
0:14:58 > 0:15:00but it might also explain
0:15:00 > 0:15:05that relatively modest guide price of £325,000
0:15:05 > 0:15:08for a property with sea views, which always get a premium.
0:15:10 > 0:15:13The original house is, undoubtedly, charming.
0:15:13 > 0:15:16The kitchen and living room are a nice size
0:15:16 > 0:15:20and, on a winter's day, this place would feel warm and inviting.
0:15:21 > 0:15:23# Could it be I'm falling in love?
0:15:23 > 0:15:25# With you, baby
0:15:25 > 0:15:30# Could it be I'm falling in love with you? #
0:15:30 > 0:15:32I have fallen hook, line and sinker.
0:15:32 > 0:15:36I can absolutely picture being cosied up in here
0:15:36 > 0:15:37when the colder months kick in.
0:15:37 > 0:15:40I can't wait to see what awaits upstairs,
0:15:40 > 0:15:42so I ain't going to!
0:15:45 > 0:15:48Well, in some ways, this house is definitely playing it by the rules,
0:15:48 > 0:15:51because the two rooms which really give a wow factor
0:15:51 > 0:15:54are the kitchen and how about this for a bathroom?
0:15:54 > 0:15:57I mean, it's not actually that spectacular,
0:15:57 > 0:16:00but that roll-top bath just gives it that edge. So, brilliant news.
0:16:00 > 0:16:03What else have we got up here? Well, three bedrooms.
0:16:03 > 0:16:04A small one round the corner there.
0:16:04 > 0:16:06A good-sized double there.
0:16:06 > 0:16:10And the third bedroom here. Again, not too bad.
0:16:10 > 0:16:12A bit of shame about that big block of flats there
0:16:12 > 0:16:14blocking the view from this particular room.
0:16:14 > 0:16:19But, all in all, a property that has so much potential, you would think.
0:16:19 > 0:16:21How about living in this part of the house
0:16:21 > 0:16:25and renting out the annexe as a holiday let?
0:16:25 > 0:16:27Absolutely ace.
0:16:27 > 0:16:29Live here, have that bringing in a bit of rental income.
0:16:29 > 0:16:31Unfortunately, you can't do it,
0:16:31 > 0:16:33because a stipulation in the planning
0:16:33 > 0:16:38is that that can only be ancillary to this part of the house.
0:16:38 > 0:16:41That cannot be separate and, in that case,
0:16:41 > 0:16:43your plans have to change a bit.
0:16:46 > 0:16:49There is potential here, for sure.
0:16:49 > 0:16:52And, maybe, it could be turned into a lovely, big family house.
0:16:52 > 0:16:56However, the holiday tour is not quite done.
0:16:58 > 0:17:00Well, so far, so interesting.
0:17:00 > 0:17:03But come round to the side of the property
0:17:03 > 0:17:07and it goes from just interesting to absolutely phenomenal.
0:17:07 > 0:17:11For a start, look at those views.
0:17:14 > 0:17:15Amazing.
0:17:15 > 0:17:19The house, as it stands, though, does not make good use of them.
0:17:19 > 0:17:21There's no windows on this part. What a shame, what a waste.
0:17:21 > 0:17:24Ha-ha! Maybe not.
0:17:24 > 0:17:26Because, also, at the side here,
0:17:26 > 0:17:31you've got a half-decent sized bit of land. It's flat.
0:17:32 > 0:17:34This is a building plot any day of the week.
0:17:34 > 0:17:36Can you imagine going to town
0:17:36 > 0:17:39and building a separate house to that one there?
0:17:39 > 0:17:42A few hurdles, like getting planning permission to do it,
0:17:42 > 0:17:44but what an opportunity.
0:17:45 > 0:17:48So, what would you do? A detached house with lots of glass?
0:17:48 > 0:17:52Or add to the original? A huge conservatory, perhaps?
0:17:52 > 0:17:56The only limits are your imagination and, well, planning, of course.
0:17:56 > 0:17:58What would you be likely to get permission for
0:17:58 > 0:17:59and would it be worth it?
0:17:59 > 0:18:02Well, the auctioneer who sold it came along to tell us.
0:18:03 > 0:18:08It's about the most versatile house I've seen.
0:18:08 > 0:18:12It's the simplest subdivision into two houses.
0:18:12 > 0:18:15Or it really works, simply, as an annexe for granny
0:18:15 > 0:18:18or a, you know, a noisy youth or whatever.
0:18:18 > 0:18:21So, from that perspective, it's two homes
0:18:21 > 0:18:24or one great, big really versatile one.
0:18:24 > 0:18:27Separating them might seem like a good move,
0:18:27 > 0:18:29but there is that planning covenant to consider.
0:18:29 > 0:18:31Would it be worth a lengthy,
0:18:31 > 0:18:34and possibly expensive, dialogue with the planners?
0:18:35 > 0:18:39I think the really nice one-bedroomed house
0:18:39 > 0:18:43would have a value in the region of £185,000.
0:18:43 > 0:18:46I think the mother house, as it were,
0:18:46 > 0:18:51would have a value in the region of £285,000.
0:18:51 > 0:18:53If the annexe was incorporated into the house,
0:18:53 > 0:18:56I wouldn't see the value in excess of £400,000.
0:18:58 > 0:19:02OK, that could mean £70,000 more if you separated the two houses,
0:19:02 > 0:19:04minus the building costs, of course.
0:19:04 > 0:19:06And, then, the plot thickens...
0:19:08 > 0:19:10If the new owners were canny enough
0:19:10 > 0:19:13to get a new three-bedroomed house on the end,
0:19:13 > 0:19:16which would just have the view all the day,
0:19:16 > 0:19:19that could be worth in the region of £350,000.
0:19:21 > 0:19:26Well, it's an interesting lot in a pretty and improving seaside town.
0:19:26 > 0:19:29And, if you could sort out the planning issues,
0:19:29 > 0:19:33then it could open up options galore for a developer.
0:19:33 > 0:19:34Still, it's a gamble.
0:19:34 > 0:19:37Let's see who decided to take it on when it went under the hammer...
0:19:38 > 0:19:42We joined this particular auction late in the day.
0:19:42 > 0:19:46133. Just a stunningly located four-bedroom house.
0:19:46 > 0:19:49So, who's going to say to us, nice and simply...?
0:19:49 > 0:19:52What's the guide? 325.
0:19:52 > 0:19:54300?
0:19:54 > 0:19:56275. Won't start at 275. 85.
0:19:56 > 0:19:57285.
0:19:57 > 0:19:59At 290.
0:19:59 > 0:20:01At 290 once.
0:20:01 > 0:20:03At 290 twice.
0:20:03 > 0:20:05295. 295.
0:20:05 > 0:20:07At 295. Don't look so shocked.
0:20:07 > 0:20:09At 295.
0:20:09 > 0:20:13Yes. I'm talking to you at 295. First time.
0:20:14 > 0:20:18Strange number to stop at. 295 a second time.
0:20:18 > 0:20:21At 295.
0:20:21 > 0:20:24If it's worth this to him, it's worth it to you.
0:20:24 > 0:20:25At 295 on the day.
0:20:26 > 0:20:29Sir, well done at 295.
0:20:29 > 0:20:31Well, it didn't take long for the hammer to fall
0:20:31 > 0:20:33for Lee, on the left, and business partner Joff,
0:20:33 > 0:20:36with their bid of £295,000.
0:20:37 > 0:20:40They have a property company together
0:20:40 > 0:20:43and, individually, own commercial and residential properties
0:20:43 > 0:20:46stretching from London to this part of the coast.
0:20:46 > 0:20:51I met them after lunch to find out what their plans were.
0:20:51 > 0:20:54# Yeah
0:20:54 > 0:20:56# In the morning
0:20:56 > 0:20:59# Not seeing her crying #
0:20:59 > 0:21:02- Joff, Lee, great to meet you. - Great to meet you.- You, too.
0:21:02 > 0:21:06- Congratulations. - Thank you very much.- I am jealous.
0:21:06 > 0:21:08What an amazing place. Tell me why you wanted to buy it.
0:21:08 > 0:21:12We came along, we loved the views. We loved the area.
0:21:12 > 0:21:14It's an up-and-coming area, in particular,
0:21:14 > 0:21:16- and we just thought that it had great potential.- Right.
0:21:16 > 0:21:19Tell me what the options are. What are you going to do to it?
0:21:19 > 0:21:21We've got a couple of options, really.
0:21:21 > 0:21:23One of them is to...
0:21:23 > 0:21:26Basically, you've got scope here to actually have two properties.
0:21:26 > 0:21:27There is a covenant as the minute,
0:21:27 > 0:21:29which, sort of, only allows one property,
0:21:29 > 0:21:33even though it's got a granny annexe to this property as well.
0:21:33 > 0:21:36But, potentially, we could be looking at sort of moving the covenant
0:21:36 > 0:21:38and then, potentially, if we can put in for planning,
0:21:38 > 0:21:42maybe, to sort of split it into two and perhaps even, you know,
0:21:42 > 0:21:45put an extension on the side with some nice glass
0:21:45 > 0:21:48- and, you know, a viewing platform et cetera.- Wow.
0:21:48 > 0:21:50To utilise it, really.
0:21:50 > 0:21:54We've had an architect look at it - he's given us a few options.
0:21:54 > 0:21:56Mainly, it's going to be the extension,
0:21:56 > 0:21:59which will virtually be the size of a house, going on the side.
0:21:59 > 0:22:00Wow.
0:22:00 > 0:22:04- Hopefully.- Yeah. Subject to planning, yeah.
0:22:04 > 0:22:05Subject to planning, yes.
0:22:05 > 0:22:08How do you imagine that's going to look? You talk about glass.
0:22:08 > 0:22:11- Is it going to be something fairly funky and...- Fairly modern.
0:22:11 > 0:22:16Fairly funky, yes. It's going to have the wow factor, definitely.
0:22:16 > 0:22:19Wow. And, then, this side, if you split it into two?
0:22:19 > 0:22:23This side, hopefully, we're going to do a similar sort of thing.
0:22:23 > 0:22:26Have another balcony there, taking in the views from the other side.
0:22:26 > 0:22:28Lee and Joff have had success
0:22:28 > 0:22:31in having covenants removed, through their solicitor, in the past,
0:22:31 > 0:22:32so they're fairly confident.
0:22:32 > 0:22:36But this one was only put on ten years ago,
0:22:36 > 0:22:38so I wouldn't count on it.
0:22:38 > 0:22:40Since so much is subject to planning,
0:22:40 > 0:22:43they have yet to set a timescale or budget for the work.
0:22:43 > 0:22:45These guys are very savvy
0:22:45 > 0:22:49and they've already given thought to that plot out the back.
0:22:49 > 0:22:53We just felt that it'd be too small, really.
0:22:53 > 0:22:56We'd rather, sort of, get a slightly bigger house
0:22:56 > 0:23:00than get, you know, multiple units, type of thing.
0:23:00 > 0:23:02And it, potentially, wouldn't have that wow factor.
0:23:02 > 0:23:04Yeah. Well, congratulations.
0:23:04 > 0:23:06- Thank you.- I can't wait to see how it all turns out.- Thank you.
0:23:06 > 0:23:08- Nice to meet you. - Thank you.- You, too.
0:23:09 > 0:23:14Well, Joff and Lee obviously having big ideas for this place.
0:23:14 > 0:23:15But are they the right ones?
0:23:15 > 0:23:18Will they get the planning permission
0:23:18 > 0:23:20for converting it into two properties?
0:23:20 > 0:23:22Would they be better off doing what I thought
0:23:22 > 0:23:25and building something here instead
0:23:25 > 0:23:28and making that one, amazing house?
0:23:28 > 0:23:32Who knows? Well, actually, you will, later on in the programme.
0:23:34 > 0:23:37Coming up, that planning covenant causes problems in Devon.
0:23:39 > 0:23:43It does take quite a long time to get all these, like, covenants removed.
0:23:44 > 0:23:46You guys think you have delays?
0:23:46 > 0:23:48Try a project that takes seven years
0:23:48 > 0:23:51due to dry rot and damp in Ramsgate.
0:23:51 > 0:23:52It's a nightmare!
0:23:58 > 0:24:01Back now to Damon Albarn's old stomping ground,
0:24:01 > 0:24:03Leytonstone, East London,
0:24:03 > 0:24:04where, earlier, I looked around
0:24:04 > 0:24:07a two-bedroom ground-floor flat between two shops.
0:24:11 > 0:24:13A little bit disappointing
0:24:13 > 0:24:16and it actually smells a little bit damp in here.
0:24:16 > 0:24:17Despite being on the ground floor,
0:24:17 > 0:24:21the peculiar window arrangements afforded little light.
0:24:21 > 0:24:24There's no view. That window is completely covered up.
0:24:24 > 0:24:27The theme continued in the little bedroom,
0:24:27 > 0:24:30creating a really boxed-in feeling to the flat.
0:24:30 > 0:24:34It's got a really unusual window - too small for the room.
0:24:34 > 0:24:37But, with the garden as it was,
0:24:37 > 0:24:39that may have been no bad thing.
0:24:39 > 0:24:42I wish you could say the view from the main bedroom made up for things.
0:24:42 > 0:24:43But, sadly...
0:24:43 > 0:24:47Why is the window there? It's not working at all!
0:24:48 > 0:24:51The flat was bought for 114,000 by Latvian artist Jana,
0:24:51 > 0:24:54who planned to do it up with her husband and then sell.
0:24:54 > 0:24:57- So the first property you've got is this.- Yes.
0:24:57 > 0:25:01But you didn't do much research, you didn't come and look at it,
0:25:01 > 0:25:03you didn't read the legal pack.
0:25:03 > 0:25:07Er, we do research about area, but we didn't see legal pack
0:25:07 > 0:25:10and we didn't see property. I really like this.
0:25:10 > 0:25:13I really like property and I really like little garden,
0:25:13 > 0:25:16and I think we are going to do very well.
0:25:16 > 0:25:18Jana was hoping that the popular area
0:25:18 > 0:25:24and the London market would get her a good profit, but I had my fears.
0:25:26 > 0:25:31- Do you think there might be any damp here?- No, I don't think, really.
0:25:31 > 0:25:34It didn't feel like damp. It didn't smell like damp.
0:25:34 > 0:25:37I know what is damp, because once I live in damp apartment -
0:25:37 > 0:25:40it was horrible. But this feels kind of fresh.
0:25:40 > 0:25:42There's no damp, I don't think. I hope so, no.
0:25:45 > 0:25:48One of the first jobs Jana's team tackled was the dark floor
0:25:48 > 0:25:51coverings throughout the flat.
0:25:51 > 0:25:55Seven weeks on, they're gone and we're back.
0:26:07 > 0:26:11The old kitchen was enclosed and claustrophobic.
0:26:11 > 0:26:13Now the dividing wall has been opened up
0:26:13 > 0:26:15and more light is in the lounge.
0:26:20 > 0:26:24New wall and floor tiles harmonise with the neutral colour scheme.
0:26:27 > 0:26:31And the addition of a feature breakfast bar gives finishing
0:26:31 > 0:26:34touches that were lacking before.
0:26:34 > 0:26:37Remember how the bathroom was?
0:26:42 > 0:26:44Well, now there's a new suite and I know
0:26:44 > 0:26:47I keep going on about the floor, but new tiles there too,
0:26:47 > 0:26:49which look great.
0:26:51 > 0:26:53The layout of the bedrooms remain the same
0:26:53 > 0:26:58but the neutral colour scheme helps with the lack of light.
0:26:58 > 0:27:04# I will turn this place into a playground once again
0:27:04 > 0:27:07# Say you'll come with me
0:27:07 > 0:27:15# And I will try to make it all feel safe. #
0:27:19 > 0:27:21And finally the garden.
0:27:21 > 0:27:26Well, it was a bit of a dumping ground - old paint cans, corrugated
0:27:26 > 0:27:31sheeting, broken slabs and who could forget the closet water feature?
0:27:36 > 0:27:40A big improvement but there again, not THAT difficult.
0:27:40 > 0:27:44What was the most difficult part of the refurbishment?
0:27:44 > 0:27:48The main problem was pipe leaking all day, because obviously,
0:27:48 > 0:27:52apartment was not looked after and we find pipe was leaking.
0:27:52 > 0:27:55We change this pipe as well, we clear water,
0:27:55 > 0:27:57and put new floors as well.
0:27:57 > 0:27:59That was the biggest challenge of this apartment,
0:27:59 > 0:28:01these floorings, yeah.
0:28:01 > 0:28:06So once that was sorted, what else was needed?
0:28:06 > 0:28:08We...
0:28:08 > 0:28:11changed completely everything, apart from walls and ceilings.
0:28:11 > 0:28:17We change windows, we put double glazing, we change kitchen,
0:28:17 > 0:28:20everything brand-new, and new doors as well.
0:28:20 > 0:28:22The doors are certainly a big improvement.
0:28:22 > 0:28:25What was Jana's role in the refurbishment?
0:28:25 > 0:28:30Supervising my builders, choosing colours - that's it,
0:28:30 > 0:28:35really - and just...paying them.
0:28:35 > 0:28:37Yes, that's property development for you.
0:28:37 > 0:28:41Just keep on signing those cheques. So what about the budget?
0:28:41 > 0:28:44We spent in the renovation of this apartment, 11,000.
0:28:44 > 0:28:48Yes, we planned 10,000, but because of floorings
0:28:48 > 0:28:52and problems with pipe, we spend 1,000 more.
0:28:54 > 0:28:56Time to compare the market valuations
0:28:56 > 0:28:59from two local estate agents.
0:28:59 > 0:29:02Has all the work here translated into a profit?
0:29:02 > 0:29:05What are the agents' first impressions?
0:29:07 > 0:29:11I think that the layout is very compact and I think I would
0:29:11 > 0:29:17have sacrificed one of the bedrooms and made a larger bedroom.
0:29:17 > 0:29:20The flat has obviously recently been refurbished
0:29:20 > 0:29:22and decorated to a reasonable standard.
0:29:22 > 0:29:24I feel the flat is fairly light and airy,
0:29:24 > 0:29:27and it does have the benefit of a small outside space.
0:29:27 > 0:29:30Jana and her husband and his uncle have
0:29:30 > 0:29:37so far invested £114,000 at auction plus 11 grand refurbishing.
0:29:37 > 0:29:40What would it be able to achieve on the rental market?
0:29:40 > 0:29:44This flat could rent for £950 per calendar month.
0:29:44 > 0:29:47I would put the property on for between 1,000
0:29:47 > 0:29:50and £1,100 per calendar month.
0:29:50 > 0:29:53Taking the top valuation, that gives the family members
0:29:53 > 0:29:58- a yield of just over 10.5%. - Oh, I'm really happy.
0:29:58 > 0:30:04It's so nice to know I can, if for any reason I don't sell my property,
0:30:04 > 0:30:07I can rent it for decent money. It's lovely.
0:30:07 > 0:30:12With a total spend of £125,000, what's it worth now?
0:30:12 > 0:30:18In today's market, this flat could sell for between 175 and £180,000.
0:30:18 > 0:30:26I would put the property on for £190,000 to achieve £180,000.
0:30:26 > 0:30:29We're hoping it's going to be around 180, 190,
0:30:29 > 0:30:32and I hope we will sell it tomorrow.
0:30:32 > 0:30:34Yes, she said tomorrow!
0:30:34 > 0:30:37In fact, the intention was to put it up for auction again,
0:30:37 > 0:30:41but they had to withdraw it because they didn't have all the paperwork ready in time.
0:30:41 > 0:30:45However, all being well, if she achieves that £180,000,
0:30:45 > 0:30:50that will glean a profit of 55,000 before the usual taxes
0:30:50 > 0:30:55and expenses, which has to be a good result in anybody's book.
0:30:59 > 0:31:01In 2007, I was in Ramsgate in Kent,
0:31:01 > 0:31:04a harbour town that inspired the likes of Karl Marx
0:31:04 > 0:31:10and Vincent van Gogh and I was here to see an arresting property.
0:31:10 > 0:31:13Well, just a hop, skip and jump from the harbour area is this nice
0:31:13 > 0:31:17little area of restored properties, kind of like courtyard.
0:31:17 > 0:31:18That's good news
0:31:18 > 0:31:21because that is where the property that I'm here to see is situated.
0:31:21 > 0:31:24It's this, the former cells of the police station.
0:31:24 > 0:31:26It's had a variety of uses in the past,
0:31:26 > 0:31:30including a restaurant in recent times, so lots of potential.
0:31:30 > 0:31:32Let's take a look inside.
0:31:32 > 0:31:35# Whoop! Whoop! That's the sound of the police. #
0:31:35 > 0:31:39Guided at £90,000, this two-storey was actually
0:31:39 > 0:31:41in the conservation area,
0:31:41 > 0:31:44so whoever was interested in this lot
0:31:44 > 0:31:47would have to factor that into time and costs.
0:31:49 > 0:31:52So through the front door and actually, a bit of a disappointment.
0:31:52 > 0:31:57Stairs going up to whatever and then through into what was obviously
0:31:57 > 0:32:01the kitchen of the restaurant that was here before. But wow!
0:32:01 > 0:32:03What is that? Oh!
0:32:03 > 0:32:07Look at this fungus! Unbelievable.
0:32:07 > 0:32:09I feel a David Bellamy moment going on.
0:32:09 > 0:32:12- IMPERSONATES DAVID BELLAMY:- Here in this prided location,
0:32:12 > 0:32:16we find this most awesomely beautiful bit of natural history.
0:32:16 > 0:32:21This is actually dry rot. Cancer of the building, they call it.
0:32:21 > 0:32:26But when you look at it like this, it's natural historical art.
0:32:26 > 0:32:27I love it!
0:32:27 > 0:32:31- SPEAKS IN OWN VOICE:- However, if you're a property developer, it's a nightmare.
0:32:35 > 0:32:38This was one of the most obvious cases of dry rot
0:32:38 > 0:32:41and all joking aside, it is a very serious issue.
0:32:44 > 0:32:49I was beginning to think this might be a rubbish buy.
0:32:49 > 0:32:51Well, here at the rear of the property,
0:32:51 > 0:32:54more indications of the previous incarnation of this building.
0:32:54 > 0:32:57Obviously, they've tried to create some kind of a themed restaurant,
0:32:57 > 0:33:02using the kind of jail aspects, painted murals on the wall,
0:33:02 > 0:33:06but what really concerns me is it's damp - really badly damp.
0:33:06 > 0:33:09We're talking about water on the floor here and if you look
0:33:09 > 0:33:15at the walls, even more varieties of mould and just general detritus -
0:33:15 > 0:33:17not good at all.
0:33:17 > 0:33:20Not quite as serious as the dry rot, but you know, something which is
0:33:20 > 0:33:22definitely going to take a lot of sorting out.
0:33:22 > 0:33:24But in terms of space, not too bad.
0:33:24 > 0:33:27We have got natural light coming through and a couple of rooms,
0:33:27 > 0:33:31one here, something leading off there, more space over there.
0:33:31 > 0:33:35- So you could use this space quite effectively.- It's not a bad area.
0:33:35 > 0:33:37It's just in a right old state
0:33:37 > 0:33:40and it's going to take quite a lot to sort it out.
0:33:40 > 0:33:42The restaurant customers have gone
0:33:42 > 0:33:46and so have the original Victorian non-paying occupants of the cells.
0:33:46 > 0:33:48So what to do with this space now?
0:33:48 > 0:33:52There's obviously some good commercial or storage space
0:33:52 > 0:33:53for the business.
0:33:53 > 0:33:57The more important question was that source of the considerable damp.
0:33:57 > 0:33:59Upstairs perhaps?
0:33:59 > 0:34:02- # We're in the jailhouse now - We're in the jailhouse now
0:34:02 > 0:34:04# We're in the jailhouse now... #
0:34:04 > 0:34:08Aha, voila! Troublesville, Arizona.
0:34:08 > 0:34:10That is the reason why there is so much water downstairs.
0:34:10 > 0:34:12Look at the state of that roof.
0:34:12 > 0:34:16Clearly, that has all got to come off and that is going to be expensive.
0:34:16 > 0:34:19But what you have got up here is a kind of extra bit of space
0:34:19 > 0:34:24that you didn't necessarily, I don't know, didn't expect. It's not huge.
0:34:24 > 0:34:26Basically, one large room here.
0:34:26 > 0:34:30This, which I presume could be a loo with a bit of storage space there,
0:34:30 > 0:34:34and then another small room here, which I suppose could be a kitchen.
0:34:34 > 0:34:37So what we're looking at here is a studio flat.
0:34:37 > 0:34:38It needs a lot of sorting out.
0:34:38 > 0:34:41It's got the high ceilings and you know what, around here,
0:34:41 > 0:34:44somewhere like this done up, about 90 grand you'd get for it,
0:34:44 > 0:34:47so a nice added-value thing to have to the property.
0:34:49 > 0:34:53- # There may be trouble ahead...- #
0:34:53 > 0:34:57You do not need to look far for trouble with this place
0:34:57 > 0:34:59but it did have potential.
0:34:59 > 0:35:04A flat with commercial space below is a distinctive proposition
0:35:04 > 0:35:06and that was appealing.
0:35:06 > 0:35:10Let's remind ourselves who agreed when it went under the hammer.
0:35:10 > 0:35:14The combination is arranged over the two floors. It's got huge potential.
0:35:14 > 0:35:17£100,000 to start me.
0:35:17 > 0:35:19£95,000 to start.
0:35:21 > 0:35:24£90,000, then. We shan't start for less.
0:35:24 > 0:35:2690. 90 I have at the back of the room.
0:35:26 > 0:35:2890 and I should think so as well.
0:35:28 > 0:35:30At £90,000...
0:35:30 > 0:35:33Bidding began quite slowly but then sprang into life.
0:35:33 > 0:35:36We rejoined the bidding at 125,000.
0:35:36 > 0:35:42125. 125. 128. Are you sure?
0:35:42 > 0:35:47Add £125,000 I am bid, it's being sold in the room at 125,000.
0:35:47 > 0:35:50I'll take six, if it helps.
0:35:50 > 0:35:55At £125,000 I have the gentleman in the tie. 126 and a fresh place.
0:35:55 > 0:36:00128. 128 is bid and 130. 130 I have. 132.
0:36:00 > 0:36:04132. 135. You're out at the back of the room.
0:36:04 > 0:36:11132 I have, fourth row back. 132,000. 135 anywhere?
0:36:11 > 0:36:14You're out at the back. You're not now. 135 and you're in.
0:36:14 > 0:36:19140 for you, sir? 149 I am bid and 145.
0:36:20 > 0:36:25£140,000 I am bid, fourth row back on the right-hand side.
0:36:25 > 0:36:28For the first time, then, at 140,000.
0:36:28 > 0:36:30Fourth row back, gentleman with the tie on,
0:36:30 > 0:36:32at 140 for the second time,
0:36:32 > 0:36:37140 for the third and final time, at 140, are you all done?
0:36:37 > 0:36:39Sold at 140.
0:36:39 > 0:36:43Absolute joy from the buyers Rosie and Ken.
0:36:43 > 0:36:46They paid well over that guide price at £90-£100,000.
0:36:46 > 0:36:51I met Ken, a financial adviser and Rosie, a drama teacher,
0:36:51 > 0:36:55back at the former police station to find out why they'd
0:36:55 > 0:36:59risk £140,000 on a building that presented such a challenge.
0:37:02 > 0:37:05- Rosie, Ken, lovely to meet you both. - Hi.- Hi.
0:37:05 > 0:37:08- This is an interesting building, isn't it?- It's got a history, yeah.
0:37:08 > 0:37:10Why did you want to buy it?
0:37:10 > 0:37:13I think we just had a good feeling about it, to be honest, so...
0:37:13 > 0:37:14I think it's the area as well.
0:37:14 > 0:37:18We knew that it was up-and-coming and, crucially,
0:37:18 > 0:37:21that's the important thing. And then on we saw it, we thought, "Oh, how sweet!
0:37:21 > 0:37:24"It's all cobbledey and traditional and period." Obviously, that's
0:37:24 > 0:37:29got its problems, but for Ken's vision, specifically, it was ideal.
0:37:29 > 0:37:31- Vision? - You're a man with vision, are you?
0:37:31 > 0:37:35- Oh, well, I like to think so, I suppose.- So what is your vision for this place?
0:37:35 > 0:37:37Oh, I'm not sure... I'm still working through it at the moment
0:37:37 > 0:37:40but I'd quite like it to work as a retail space.
0:37:40 > 0:37:43- I think that would be quite... - A shop?- Yeah, basically, yeah.
0:37:43 > 0:37:45I mean, I think that would be in keeping
0:37:45 > 0:37:48with what others in the area want to do with neighbouring properties
0:37:48 > 0:37:52so, yeah, I think, actually, this part of Ramsgate could be something quite different, quite special.
0:37:52 > 0:37:54So what you going to do?
0:37:54 > 0:37:57I'd really like to combine something that's a bit drama-ish with
0:37:57 > 0:38:01bringing people in and having like events that would make this
0:38:01 > 0:38:05really exciting. Possibly linking it to the police station.
0:38:05 > 0:38:07But Ken is very style-conscious,
0:38:07 > 0:38:10so we have to be measured in our approach
0:38:10 > 0:38:13and maybe bring out the best of our talents.
0:38:13 > 0:38:16Ken's plan is to have an interior design shop
0:38:16 > 0:38:21and they certainly have some creative ideas.
0:38:21 > 0:38:24Do you have an idea of how much it's all going to cost at this stage?
0:38:24 > 0:38:26Probably about sort of 30 to 60,000,
0:38:26 > 0:38:29I think, on the actual fabric of the place.
0:38:29 > 0:38:32So what about a timescale for everything you're planning?
0:38:32 > 0:38:36So the timescale is a little bit elastic, let's put it that way.
0:38:36 > 0:38:39Probably six months to a year, realistically,
0:38:39 > 0:38:43to get any kind of empty, cohesive shell.
0:38:43 > 0:38:45What do you think the biggest challenge is?
0:38:45 > 0:38:48The biggest challenges are actually just, you know, resource,
0:38:48 > 0:38:50basically, to be honest. You know, time,
0:38:50 > 0:38:53yes but I think, you know, a project like this can actually run away with
0:38:53 > 0:38:55you if you don't keep it under tight control.
0:38:55 > 0:38:56So in that respect, as I say,
0:38:56 > 0:38:59I've got to try and make it work with what I've got available.
0:38:59 > 0:39:03So I think that's - in the short term - going to be the biggest challenge.
0:39:03 > 0:39:05They had set themselves the challenge, for sure,
0:39:05 > 0:39:09and I don't think they even knew just how much of one.
0:39:09 > 0:39:1114 months later, when we returned,
0:39:11 > 0:39:16that elastic timeframe Rosie talked about looked like being stretched
0:39:16 > 0:39:18even further because the former police cells
0:39:18 > 0:39:20were still a building site.
0:39:20 > 0:39:22So what was the hold-up?
0:39:22 > 0:39:25The broad timescale was hopefully to try and get the retail
0:39:25 > 0:39:29space sorted within about a two, three, four-month timescale.
0:39:29 > 0:39:32But having then shifted and trying to put some living,
0:39:32 > 0:39:36some accommodation space, some overnight management stopover-type
0:39:36 > 0:39:40space in the property has pushed out the timescale.
0:39:40 > 0:39:45So, yeah, it's expanded but I'm comfortable with that.
0:39:45 > 0:39:48Ken's vision had indeed expanded, along with the timescale,
0:39:48 > 0:39:52and that's because he'd embarked upon creating a flat with
0:39:52 > 0:39:55a mezzanine floor above the retail space.
0:39:59 > 0:40:02Yeah, so, over here we're going to have the open-plan living area,
0:40:02 > 0:40:06open fire with gas insert, lovely sort of open-plan kitchen,
0:40:06 > 0:40:11range cooker, cloakroom, so, yeah, all the mod cons on this level.
0:40:11 > 0:40:13I think the really nice bit's going to be the spiral staircase,
0:40:13 > 0:40:17which will go upstairs to the master suite, with the sort of spa bathroom.
0:40:17 > 0:40:20So, yeah, I'm really pleased. I think it's coming along.
0:40:20 > 0:40:25I think we've managed to turn what was a pretty small, pokey property
0:40:25 > 0:40:29into something which is really quite modern and exciting.
0:40:32 > 0:40:35And the flat sounded like it was going to be amazing,
0:40:35 > 0:40:38but what about Ken's original vision of that shop?
0:40:44 > 0:40:48So, yeah, what I ultimately want is a different sort of areas to be
0:40:48 > 0:40:51the different sort of themes in terms of what we're selling,
0:40:51 > 0:40:55and the ultimate vision is going to be, you know, it's going to be,
0:40:55 > 0:40:59hopefully, a very uplifting, exciting destination
0:40:59 > 0:41:00for people to actually come.
0:41:00 > 0:41:03I want people to share, to a certain extent,
0:41:03 > 0:41:05my vision of how I like to live.
0:41:05 > 0:41:09So, yeah, I'm really looking forward to it. I'm really looking for to it.
0:41:09 > 0:41:12Of course, while our plans for Ken's emporium came to life,
0:41:12 > 0:41:16he had the practical issues to deal with, like the dry rot
0:41:16 > 0:41:20and making the place watertight, so there was a new roof with an atrium.
0:41:20 > 0:41:25It was quite a vision. What role was Rosie playing?
0:41:28 > 0:41:34My role? Purely, I think, has been the wind beneath Ken's wings.
0:41:34 > 0:41:38I've turned up and bought lunches for the guys and asked him about how
0:41:38 > 0:41:42the projects going, and really tried to keep him on task when he just...
0:41:42 > 0:41:45You know, there are times when he's really felt incredibly challenged.
0:41:45 > 0:41:50Ken's determination was admirable, but time was money,
0:41:50 > 0:41:54and he had originally thought £30-£60,000 would do the work,
0:41:54 > 0:41:57so where was he with that now?
0:41:57 > 0:41:58End budget, at the end of the day,
0:41:58 > 0:42:00will probably have to be 80K, to be honest.
0:42:00 > 0:42:05I don't think I can possibly exceed that for lots of reasons.
0:42:05 > 0:42:10There was no shortage of optimism on this project, which is a good thing
0:42:10 > 0:42:12because it would be a further six years
0:42:12 > 0:42:15before the project reached a conclusion.
0:42:15 > 0:42:17Yes, you heard right, six years.
0:42:23 > 0:42:27Well, we've seen how one property turned out. How about the others?
0:42:27 > 0:42:30Did they spend more time and money than they anticipated
0:42:30 > 0:42:32or did they come in bang on budget?
0:42:32 > 0:42:34Let's find out!
0:42:47 > 0:42:53It was in the lovely seaside town of Brixham in Devon, where we first saw
0:42:53 > 0:42:58an impressive auction lot described as two self-contained linked houses.
0:42:58 > 0:43:01On the face of it, it looks like they could be turned
0:43:01 > 0:43:04into two separate dwellings, but a covenant prevented that.
0:43:04 > 0:43:08However, the house's prominent position and superb views
0:43:08 > 0:43:11across the bay were glorious.
0:43:14 > 0:43:16With land around it, there was
0:43:16 > 0:43:19also the possibility of developing the property further,
0:43:19 > 0:43:23so this was a mouthwatering prospect for any developer.
0:43:23 > 0:43:25Perhaps, not surprisingly, it was snapped up
0:43:25 > 0:43:30by property developing team Joff, seen here on the left, and Lee.
0:43:34 > 0:43:37Tell me what the options are then. What are you going to do to it?
0:43:37 > 0:43:40We've got a couple of options really.
0:43:40 > 0:43:41One of them is that, basically,
0:43:41 > 0:43:44you've got scope here to actually have two properties.
0:43:44 > 0:43:46There is a covenant at the minute, which, sort of,
0:43:46 > 0:43:49only allows one property, even though it's got a granny annexe
0:43:49 > 0:43:52to this property as well, but, potentially,
0:43:52 > 0:43:54we could be looking at removing the covenant
0:43:54 > 0:43:58and perhaps even putting an extension on the side with the fantastic views.
0:43:58 > 0:44:01- Hopefully.- Yeah, subject to planning, of course.
0:44:01 > 0:44:04- Subject to planning. - Subject to planning, yes.
0:44:04 > 0:44:07With the plot the house sat on appearing to offer the possibility
0:44:07 > 0:44:12of an extension or even another house, there were a lot of options.
0:44:12 > 0:44:16Well, now, over a year later, we've grabbed our bucket and spade
0:44:16 > 0:44:19and it's back down to the seaside.
0:44:49 > 0:44:53Yes, it's all pretty similar, but clearly someone is living here.
0:44:53 > 0:44:55So, what's happened over the last year?
0:44:57 > 0:45:00There was always the plan for us to actually put a tenant here,
0:45:00 > 0:45:02because it does take quite a long time
0:45:02 > 0:45:06to get all the covenants removed, get the planning in place.
0:45:06 > 0:45:08We didn't really want to leave the property, sort of, empty,
0:45:08 > 0:45:11so it was just ideal. It was in good condition, you know,
0:45:11 > 0:45:14there was minimal work to do to get it up to a tenanted level.
0:45:14 > 0:45:17And, you know, that was a natural thing to do
0:45:17 > 0:45:20while we were looking at the plans, etc.
0:45:20 > 0:45:22Joff and Lee have done the sensible thing.
0:45:22 > 0:45:25There's no point in the place just gathering dust
0:45:25 > 0:45:27when it could be earning its keep.
0:45:27 > 0:45:29At last, they've sourced out that restrictive covenant,
0:45:29 > 0:45:33and now have plans drawn up, ready for the next phase.
0:45:33 > 0:45:36Yeah, so what we've got here is the existing building,
0:45:36 > 0:45:39and you can see there's a really modern extension
0:45:39 > 0:45:42to the actual side of it. Again, they're all linked together,
0:45:42 > 0:45:47so it's one big house. It's completely glass at the front.
0:45:47 > 0:45:50It's got a grey zinc roof on the top there,
0:45:50 > 0:45:55and, on the very top there, is a sort of balcony and a sundeck
0:45:55 > 0:45:58with a hot tub, which is going to be positioned on the top.
0:45:58 > 0:46:02We've made use of the middle floor there with a large lounge.
0:46:02 > 0:46:06Again, that's completely glass at the front with a balcony
0:46:06 > 0:46:10and on the bottom floor, the kitchen and the dining area will be.
0:46:10 > 0:46:14So, instead of going for splitting the property and making two houses,
0:46:14 > 0:46:17Lee and Joff have decided the site is more suited to
0:46:17 > 0:46:21one large, rather magnificent house.
0:46:21 > 0:46:25Imagine sitting in the glass extension looking out to sea. Wow!
0:46:25 > 0:46:28So, if they get the go-ahead from the planning committee,
0:46:28 > 0:46:30when will they go ahead with the work?
0:46:30 > 0:46:33At the moment, we've got very good tenants and we've actually
0:46:33 > 0:46:38said to them we will not be doing anything. Why? It's their home,
0:46:38 > 0:46:40and if they ever choose to move on,
0:46:40 > 0:46:42then we'll look at doing the build then.
0:46:42 > 0:46:45OK, so Brixham may have to wait before the House on the Hill
0:46:45 > 0:46:48has its potentially iconic look
0:46:48 > 0:46:51and, without planning granted or a definite start date,
0:46:51 > 0:46:55Joff and Lee don't know how much the building work will cost,
0:46:55 > 0:47:00but having bought the house for 295,000, and spent around £5,000
0:47:00 > 0:47:06on remedial work and architect fees, their total cost to date is 300,000.
0:47:11 > 0:47:14But if they eventually do realise their plans,
0:47:14 > 0:47:15will it be worth the wait?
0:47:15 > 0:47:19And, more importantly, are their plans right for the area?
0:47:19 > 0:47:21What do two local property experts think?
0:47:22 > 0:47:27The plans are really quite spectacular.
0:47:27 > 0:47:29And, for this particular location,
0:47:29 > 0:47:34it's all about making the most of the sort of bookend views,
0:47:34 > 0:47:38which are as nice as you can possibly wish to get by the sea.
0:47:38 > 0:47:41I think they are over developing the site by building
0:47:41 > 0:47:46the extension on the side - I personally wouldn't do that.
0:47:46 > 0:47:49I think the cost in doing so... I don't think they'll get the return.
0:47:49 > 0:47:53Oh, interesting. Maybe bigger isn't better.
0:47:53 > 0:47:58What kind of resale values might be expected for their planned mansion?
0:47:59 > 0:48:01In the current market,
0:48:01 > 0:48:05the ultimately created fantastic house, done to a good spec,
0:48:05 > 0:48:08could fetch as much as £1 million.
0:48:08 > 0:48:15- If they built the extension, I would estimate a figure of £450,000.- Wow!
0:48:15 > 0:48:19That's a massive difference in price. Why is that?
0:48:19 > 0:48:24I think there is demand for that property in Brixham, but I...
0:48:24 > 0:48:26Perhaps not this plot.
0:48:26 > 0:48:29I think if it was on the Berry Head side of Brixham, definitely,
0:48:29 > 0:48:30and he could probably achieve somewhere
0:48:30 > 0:48:33in the region of 900 to 1.1 million,
0:48:33 > 0:48:37- but not on this side of town. - That's interesting.
0:48:37 > 0:48:40What do Joff and Lee think about that?
0:48:40 > 0:48:44We'd be hoping for a lot higher valuation than 450.
0:48:44 > 0:48:48We're doing the extension because it would be an iconic building
0:48:48 > 0:48:52and, perhaps, it's difficult to imagine until it's actually built,
0:48:52 > 0:48:55but we will seek advice.
0:48:55 > 0:48:58My guess is that somewhere between the two resale values
0:48:58 > 0:49:01might lie the truth, but as Lee and Joff said,
0:49:01 > 0:49:04until it's been built and finished, who can really say?
0:49:04 > 0:49:07But, in the meantime, I don't somehow think these two
0:49:07 > 0:49:09will worry too much.
0:49:09 > 0:49:12With over 170 properties between them,
0:49:12 > 0:49:15I'm sure they've got other fish to fry.
0:49:16 > 0:49:18We've got a number of plans.
0:49:18 > 0:49:19We've got a number of building plots
0:49:19 > 0:49:22that we're going to start building on for individual houses.
0:49:22 > 0:49:24A couple of big properties as well that we've got,
0:49:24 > 0:49:27which we're sort of working on at the minute,
0:49:27 > 0:49:29so, yeah, we've got quite a few bits going on.
0:49:34 > 0:49:38We set sail now for the Devon coast along the English Channel,
0:49:38 > 0:49:42and dock at Ramsgate, Kent, where, back in 2007,
0:49:42 > 0:49:44we first met Rosie and Ken.
0:49:44 > 0:49:50They paid £140,000 for this former police station in Ramsgate.
0:49:50 > 0:49:53They had a maximum budget of £60,000,
0:49:53 > 0:49:56and a liberal approach to timescale.
0:49:56 > 0:50:00So, the timescale is a little bit elastic, let's put it that way.
0:50:00 > 0:50:03Probably six months to a year realistically...
0:50:03 > 0:50:07- I would have thought, yeah.- ..to get any kind of empty, cohesive shell.
0:50:07 > 0:50:11They had a vision for a retail space downstairs,
0:50:11 > 0:50:14but this building had dry rot, mould, damp,
0:50:14 > 0:50:16and some prison cells out back.
0:50:18 > 0:50:20What do you think the biggest challenge is?
0:50:20 > 0:50:23The biggest challenges, I think, are actually just, you know, resource,
0:50:23 > 0:50:25basically, to be honest.
0:50:25 > 0:50:28You know, time, yes, but I think, you know, a project like this can
0:50:28 > 0:50:31actually run away with you if you don't keep it under tight control.
0:50:31 > 0:50:35Yes, time can run away when it comes to property developing.
0:50:35 > 0:50:37So, 14 months later, when we returned,
0:50:37 > 0:50:39things had moved on at a steady pace
0:50:39 > 0:50:44and the timescale proved not to be the only thing that was elastic -
0:50:44 > 0:50:49the original budget of £30-£60,000 was too.
0:50:49 > 0:50:53An end budget, at the end of the day, will probably have to be 80K,
0:50:53 > 0:50:56to be honest. I don't think I can possibly exceed that
0:50:56 > 0:50:57for a number of reasons.
0:50:58 > 0:51:04So, we met them in 2007, then 2008, and then, drum roll, please.
0:51:04 > 0:51:08- DRUMROLL - Seven years after, we're back...
0:51:08 > 0:51:11and the old police cells have been transformed to house
0:51:11 > 0:51:13Ken's eclectic emporium.
0:51:51 > 0:51:56And, up the spiral staircase, is a beautiful studio flat.
0:51:58 > 0:52:01I think when you start something and you've got a very clear idea
0:52:01 > 0:52:03of what you want at the end of it,
0:52:03 > 0:52:06and you're committed to trying to see it through,
0:52:06 > 0:52:09I think that actually can be a bit of a prison sentence,
0:52:09 > 0:52:11and it certainly has felt like that here.
0:52:11 > 0:52:13The building had actually been empty for quite a few years
0:52:13 > 0:52:17before we've actually taken possession. The new roof...
0:52:17 > 0:52:21The building probably took about two years to dry out,
0:52:21 > 0:52:25once it was actually the new roof and the shell was watertight.
0:52:25 > 0:52:27During the actual building, we discovered
0:52:27 > 0:52:29that there was quite extensive dry rot,
0:52:29 > 0:52:32but most of the actual timbers within the building had to be replaced
0:52:32 > 0:52:35anyway, in terms of redoing things, so most of the actual fabric
0:52:35 > 0:52:37of the building has actually been replaced.
0:52:37 > 0:52:41There's probably... What remains of the building is really only
0:52:41 > 0:52:44the exterior shell. Most of the interior has been redone.
0:52:44 > 0:52:48And, my, how those interiors have been redone!
0:52:48 > 0:52:51The upstairs flat is a masterpiece of style.
0:52:51 > 0:52:54I particularly like the design of the kitchenette and the toilet,
0:52:54 > 0:52:58and, of course, that fabulous spiral staircase,
0:52:58 > 0:53:02leading to the mezzanine floor and a spacious bathroom.
0:53:02 > 0:53:04Well, we are in the studio space.
0:53:04 > 0:53:07We stripped the space back to expose all the brickwork,
0:53:07 > 0:53:11reinstated the floor, reinstated the fireplace,
0:53:11 > 0:53:14and then it was a matter of just putting features back in,
0:53:14 > 0:53:17so we tried to make it a usable space, a flexible space,
0:53:17 > 0:53:19for the business, or for accommodation,
0:53:19 > 0:53:21so we put back in the mini kitchenette,
0:53:21 > 0:53:25installed the range cooker, installed features like the bookcase
0:53:25 > 0:53:30and the staircase, and I think it works. It's really, really nice.
0:53:30 > 0:53:33It's a great space to be in and I'm really pleased with it.
0:53:33 > 0:53:36It may have all been Ken's vision,
0:53:36 > 0:53:39but Rosie played a crucial role in supporting him.
0:53:40 > 0:53:44Originally, when this whole project kicked off, I thought,
0:53:44 > 0:53:48"How fabulous! Maybe I can turn up and do a bit of DIY!"
0:53:48 > 0:53:51There was a time where I did a bit of hoovering
0:53:51 > 0:53:54and I did wipe down one wall.
0:53:54 > 0:53:56You've got the evolution of the building,
0:53:56 > 0:53:59that's turned from this monster beast thing
0:53:59 > 0:54:02into this beautiful, renovated period building,
0:54:02 > 0:54:08and you've got the evolution of Ken, creatively, with all of his ideas.
0:54:08 > 0:54:10Those ideas won't have been cheap.
0:54:10 > 0:54:13Ken has been handcuffed to this property for seven years.
0:54:13 > 0:54:16Has it come at a criminally large price?
0:54:16 > 0:54:20The original budget, when we first bought the place, was 60,000 -
0:54:20 > 0:54:25that had to be revised once certain issues were actually realised.
0:54:25 > 0:54:28So, the revised budget was 80,000.
0:54:30 > 0:54:32In retrospect, I suppose we probably spent
0:54:32 > 0:54:37probably upwards of over 100, probably about 120.
0:54:37 > 0:54:42Well, doing up the former workplace of the boys in blue might have
0:54:42 > 0:54:46put Ken in the red. However, he has plenty of options here.
0:54:46 > 0:54:49He could sell the flat upstairs, sell the shop,
0:54:49 > 0:54:50or sell it all as one.
0:54:50 > 0:54:53Let's hope two local property experts might be able
0:54:53 > 0:54:55to give him some good news.
0:54:55 > 0:54:58This is my second visit to the property and I'm absolutely amazed
0:54:58 > 0:55:01at the quality of the finish that they've brought to the building.
0:55:01 > 0:55:03It's been a very sympathetic renovation.
0:55:03 > 0:55:05The layout of the flat is very, very good.
0:55:05 > 0:55:08You've got the entrance from the main street if you need it.
0:55:08 > 0:55:11If you want to separate it off from the commercial premises downstairs,
0:55:11 > 0:55:15so the layout works and it would be a perfect little lock-up holiday home
0:55:15 > 0:55:18for someone, or just a nice place to live in general.
0:55:18 > 0:55:21This is the first time I've seen this property.
0:55:21 > 0:55:25It's been renovated to a fabulous standard. The shop is excellent -
0:55:25 > 0:55:26it's really appealing.
0:55:26 > 0:55:29The flat has been renovated to a very high standard as well.
0:55:29 > 0:55:35So, bought at auction for 140,000, and spending £120,000
0:55:35 > 0:55:40on the whole building, Ken's total spend is 260,000.
0:55:40 > 0:55:43So, what about selling just the flat?
0:55:43 > 0:55:46If this flat were placed on the market at the moment, I would expect
0:55:46 > 0:55:51the owner to achieve somewhere in the region of £115-£120,000.
0:55:51 > 0:55:55I think we'd achieve around £145,000.
0:55:55 > 0:55:58That top valuation is pretty healthy,
0:55:58 > 0:56:00so what about the emporium downstairs?
0:56:00 > 0:56:04What kind of value do the agents think that could sell for?
0:56:05 > 0:56:08It's going to depend on the yields that you would obtain.
0:56:08 > 0:56:10You're going to be looking at a rental income
0:56:10 > 0:56:13of between £8-£10,000 per annum.
0:56:13 > 0:56:15So, that would give a 10% yield,
0:56:15 > 0:56:19would give a value of between £80,000 and £100,000.
0:56:19 > 0:56:22I would estimate the shop, compared to similar properties
0:56:22 > 0:56:26we've had in the area recently, to achieve in the region of £60,000.
0:56:26 > 0:56:29A lot of variation in valuation once again,
0:56:29 > 0:56:37but a top value of £100,000 would see Ken hit with a £160,000 loss,
0:56:37 > 0:56:39but he would still keep the flat.
0:56:39 > 0:56:42OK, Ken, this might be the most useful part.
0:56:42 > 0:56:45What about selling the whole building?
0:56:45 > 0:56:48If the owner were to put the flat and the shop on the market
0:56:48 > 0:56:52at the moment, I would estimate that in the region of £175,000
0:56:52 > 0:56:55is what we would expect to achieve.
0:56:55 > 0:56:58If the unit was sold as a whole, I believe the value would be
0:56:58 > 0:57:03at a top limit of £250,000, at the stamp duty cut-off point,
0:57:03 > 0:57:07going down to a low level of, perhaps, £225,000,
0:57:07 > 0:57:08depending on the market.
0:57:10 > 0:57:15So, a top value of 250,000 sees Ken lose £10,000
0:57:15 > 0:57:19before the usual taxes and expenses.
0:57:19 > 0:57:22It's helpful to have a number in the back of your head,
0:57:22 > 0:57:24but this was always going to be about the business,
0:57:24 > 0:57:27so whilst it's helpful, and, you know,
0:57:27 > 0:57:29that information is useful to know,
0:57:29 > 0:57:33it doesn't really change things for us, so... But useful.
0:57:37 > 0:57:40Valuations aside, I think Ken will be delighted
0:57:40 > 0:57:42the project is finally finished.
0:57:42 > 0:57:45He steered the ship over seven years
0:57:45 > 0:57:49and now has a quirky shop and a fantastic flat.
0:57:49 > 0:57:50What's he going to do next?
0:57:50 > 0:57:55I would imagine it might be a lie down in a darkened room somewhere.
0:57:55 > 0:57:56Oh, what's next?
0:57:56 > 0:57:59Yes, well, a bit of a break would be nice, to be honest,
0:57:59 > 0:58:01but there's always work to do.
0:58:01 > 0:58:04We are thinking about another property at this minute,
0:58:04 > 0:58:08so we just need to watch this space and see what happens.
0:58:11 > 0:58:14So, fairytale projects or nightmare endings next time?
0:58:14 > 0:58:16Only one way to find out.
0:58:16 > 0:58:18Make sure you join us soon for more Homes Under the Hammer.
0:58:18 > 0:58:21- We'll see you then. - Goodbye.- Goodbye.