0:00:02 > 0:00:05Hello. Sometimes the property market is extremely competitive.
0:00:05 > 0:00:07Other times, it's, well, slow.
0:00:07 > 0:00:10But either way, you've got to know where to get a bargain.
0:00:10 > 0:00:11So what's our advice?
0:00:11 > 0:00:16Well, do as much research as you can, then set a limit and stick to it.
0:00:16 > 0:00:19And one place you can kind of move things in your favour
0:00:19 > 0:00:21is visit your local property auction.
0:00:47 > 0:00:50Buying at auction is increasingly popular.
0:00:50 > 0:00:56Not surprising when you consider how long-winded buying by other means can be.
0:00:56 > 0:00:59So when the hammer falls, you've exchanged contracts.
0:00:59 > 0:01:02What did the buyers buy on today's show?
0:01:03 > 0:01:08On the Kent coast, a former fancy dress shop has a blessing in disguise.
0:01:08 > 0:01:12Planning permission to turn this space into five flats.
0:01:14 > 0:01:18There's no disguising a first-class opportunity on Cumbria's West Coast.
0:01:18 > 0:01:22It has actually got outline planning permission for the creation of a single dwelling.
0:01:22 > 0:01:25And there is no attempt to disguise the plumbing
0:01:25 > 0:01:28in this Staffordshire two bed mid-terrace.
0:01:28 > 0:01:31Possibly water, possibly even worse - gas.
0:01:31 > 0:01:33Just floating there.
0:01:35 > 0:01:38All of these properties have been sold at auction.
0:01:38 > 0:01:41We'll find out who bought them and what they paid for them
0:01:41 > 0:01:43when they went under the hammer.
0:01:46 > 0:01:49Folkestone in Kent on the south-east coast
0:01:49 > 0:01:52has undergone a great deal of regeneration.
0:01:52 > 0:01:55Most of Folkestone's town centre has been pedestrianised
0:01:55 > 0:01:58and a cafe culture is certainly growing here.
0:02:00 > 0:02:03The lot I'm here to see today is extremely central
0:02:03 > 0:02:07and could not be more convenient for all those lovely coffee shops,
0:02:07 > 0:02:11which means it's an area ripe for similar regeneration.
0:02:11 > 0:02:13Promising.
0:02:13 > 0:02:15Now the property itself is this.
0:02:15 > 0:02:18It's a grand, tall, four-storey building with a shop
0:02:18 > 0:02:23on the ground floor and a guide price of just £80,000 to £85,000.
0:02:23 > 0:02:27So let's start from the bottom up. Shop first? In we go.
0:02:30 > 0:02:33My first impressions, it is huge.
0:02:33 > 0:02:36There is plenty of floor space and that is brilliant.
0:02:36 > 0:02:39Now, I know this used to be a fancy dress shop at one
0:02:39 > 0:02:42point in its life, so we are talking A1 shop usage.
0:02:42 > 0:02:45So it could become a clothes shop, a toy shop,
0:02:45 > 0:02:48any kind of shop really or even a post office.
0:02:48 > 0:02:51It could be an undertakers, a dry cleaners.
0:02:51 > 0:02:56Just not somewhere that serves food or deals with financial services.
0:02:56 > 0:03:00So it's certainly got the space, it's got options.
0:03:00 > 0:03:02Let's go upstairs and look further.
0:03:02 > 0:03:06Yes, it's a big space, but I'm not sure that retail is the answer here.
0:03:06 > 0:03:09I think I would certainly look to see
0:03:09 > 0:03:12if I could get a change of use from commercial to residential,
0:03:12 > 0:03:16which is more in line with the rest of the building.
0:03:16 > 0:03:19However, if it was to remain a shop, the good news
0:03:19 > 0:03:23is that there is a separate access to the upper floors.
0:03:23 > 0:03:27And judging by the size of the building, there's going to be lots of space.
0:03:27 > 0:03:32But the crumbling facade does suggest that some work might be needed.
0:03:32 > 0:03:35Well, the condition of the floors above is not great.
0:03:35 > 0:03:37The ceilings are coming down.
0:03:37 > 0:03:42I would want to find out whether that is due to lots of rain water coming in from the roof.
0:03:42 > 0:03:44So there is clearly work to do.
0:03:44 > 0:03:47But there's lots of square footage to work with also.
0:03:47 > 0:03:51Now, here is where I should tell you that in fact this property
0:03:51 > 0:03:54came with planning permission to turn this space on the upper
0:03:54 > 0:03:59levels into five flats, which is fantastic news.
0:03:59 > 0:04:01You've got two on the first floor,
0:04:01 > 0:04:05there's going to be two on the second floor and one on the top floor.
0:04:05 > 0:04:07All of them one-bedders.
0:04:07 > 0:04:11This really is exciting news and makes this whole building just come to life.
0:04:11 > 0:04:13# I'm so excited
0:04:13 > 0:04:14# I'm so excited
0:04:14 > 0:04:17# I know exactly what I'm going to do
0:04:17 > 0:04:19# Let's get excited.
0:04:19 > 0:04:20# I'm so excited
0:04:20 > 0:04:23# I'm a detective I'm all over you. #
0:04:23 > 0:04:26There's certainly a lot of rooms, a lot of stairs
0:04:26 > 0:04:28and a lot of square footage here.
0:04:28 > 0:04:31But also, a lot of repair work to do first.
0:04:31 > 0:04:34Well, you've got to get the fabric of the building in order
0:04:34 > 0:04:37before you can even start considering converting this
0:04:37 > 0:04:39four-storey property into five flats.
0:04:41 > 0:04:45So one of the flats will be at the rear of the second floor here
0:04:45 > 0:04:49and it will be created in an extension out the back there.
0:04:49 > 0:04:52But this area here will be flat number three.
0:04:52 > 0:04:54Now, it's hard to tell from these empty rooms
0:04:54 > 0:04:57what these flats are going to look like and feel like
0:04:57 > 0:05:00when they are finished, but according to the plans passed,
0:05:00 > 0:05:03this area is going to be the bathroom.
0:05:03 > 0:05:05Over here is going to be the bedroom.
0:05:05 > 0:05:08So you've got an internal bathroom, which is going to really work,
0:05:08 > 0:05:09I think. It's a reasonable size.
0:05:09 > 0:05:12It's not massive, but it will be fine,
0:05:12 > 0:05:15this flat, because through here to the front room, look!
0:05:15 > 0:05:18You've got those amazing big, high windows. All the light coming in.
0:05:18 > 0:05:21And this will be your kitchen, living,
0:05:21 > 0:05:23dining space with a kitchen on the back wall.
0:05:23 > 0:05:26You've got space for a sofa here.
0:05:26 > 0:05:29All the flats have got this open plan kitchen space, which is fine.
0:05:29 > 0:05:32But you might want to bear in mind, this will be
0:05:32 > 0:05:35the biggest of the proposed flats out of all of them.
0:05:35 > 0:05:38All in all though, five flats, planning passed,
0:05:38 > 0:05:40commercial space to rent out on the ground floor.
0:05:40 > 0:05:43It's got my developer senses tingling!
0:05:43 > 0:05:45# I'm so excited
0:05:45 > 0:05:47# I'm a detective I'm all over you. #
0:05:47 > 0:05:50But before you crack on and do anything here, you have to
0:05:50 > 0:05:53check out the property prices in the local area.
0:05:53 > 0:05:57Does converting this huge building into flats make financial sense?
0:05:59 > 0:06:02We asked along a local estate agent to give us his verdict.
0:06:02 > 0:06:06First off, what about the ground floor commercial unit, the shop?
0:06:07 > 0:06:11The commercial unit will be difficult to rent because there is not a lot of demand.
0:06:11 > 0:06:14It would be a owner buyer, I would think.
0:06:14 > 0:06:17You wouldn't buy to let this shop, I don't think.
0:06:17 > 0:06:20Well, that's not great news about the shop,
0:06:20 > 0:06:23but then these are difficult economic times for retail.
0:06:23 > 0:06:27What about the rest of the building and the plans that have been passed?
0:06:27 > 0:06:31The layout for this building on the plans is for five one-bedroom
0:06:31 > 0:06:34flats and for the sort of demand in this town, I think
0:06:34 > 0:06:37that's the best way they could use this particular building.
0:06:37 > 0:06:40So, financially, how would it stack up?
0:06:40 > 0:06:43What rent could you achieve per flat?
0:06:43 > 0:06:45Rental for a one-bedroom flat in this particular
0:06:45 > 0:06:49area would be in the region of £400 to £450 per calendar month.
0:06:49 > 0:06:51And what about sale value per flat?
0:06:51 > 0:06:58A one-bedroom flat in this area would be in the region of £60,000 to £65,000, top end.
0:07:00 > 0:07:04So altogether, that's between £300,000 and £325,000
0:07:04 > 0:07:07if you sold all five flats and a potential rental
0:07:07 > 0:07:14income of between £2,000 and £2,255 per month if you let them all out.
0:07:17 > 0:07:22A lot of people have faith in Folkestone as a place to invest and with good reason.
0:07:22 > 0:07:26And this is an impressive building in a central location with
0:07:26 > 0:07:29planning in place to potentially make you some money.
0:07:29 > 0:07:32Let's see who went for it at the auction.
0:07:32 > 0:07:35The last lot today is Lot 67.
0:07:35 > 0:07:39It's the four-storey town centre property you can see there.
0:07:39 > 0:07:41Planning consent for conversion
0:07:41 > 0:07:45and extension of the upper parts to give you five self-contained flats.
0:07:45 > 0:07:51And with the shop as well. Start me at 75 then. 75. In the back at 75.
0:07:51 > 0:07:5575. And 78. 78, sitting down. And 80. It's against you at the back.
0:07:55 > 0:08:00At 80, it's with you. And two. 82. 82. And four.
0:08:01 > 0:08:06So despite a quiet auction room, the lot had started a bidding war
0:08:06 > 0:08:09and we rejoin with bids at £100,000.
0:08:10 > 0:08:14And 100. And two. And four. And six.
0:08:14 > 0:08:19And eight. And 10. And 12. 14. 116.
0:08:19 > 0:08:28And 18 again. 116 with you. 118. It's against both of you. 118,000.
0:08:28 > 0:08:31Otherwise, for the first time again at £116,000.
0:08:31 > 0:08:33Make no mistake, it's the lady in front.
0:08:33 > 0:08:37For the first time. At £116,000 for the second time.
0:08:37 > 0:08:39If you are sure you're all done.
0:08:39 > 0:08:45116 for the third and final time. That is yours for 116.
0:08:45 > 0:08:49Regular viewers may recognise Deborah, who got the property for 116,000,
0:08:49 > 0:08:52because we've met her before on Homes Under The Hammer.
0:08:54 > 0:08:57She works for clients abroad as well as at home to help them
0:08:57 > 0:08:59build profitable portfolios.
0:09:01 > 0:09:04# I'm back for more
0:09:04 > 0:09:05# I'm back for more. #
0:09:05 > 0:09:08- Deborah, lovely to meet you again. - Likewise.
0:09:08 > 0:09:11The last time we met you had just bought a funeral parlour.
0:09:11 > 0:09:14- In fact, my first one on Homes Under The Hammer.- That's right.
0:09:14 > 0:09:16And you are back for more.
0:09:16 > 0:09:18Are you still investing on behalf of other people
0:09:18 > 0:09:21because that is what you were doing the last time we met?
0:09:21 > 0:09:24- That's right.- So you actually spot these properties for your investors.
0:09:24 > 0:09:27- You sort of go house shopping for them.- Yes.
0:09:27 > 0:09:30That's exactly what I do on quite a large scale.
0:09:30 > 0:09:32Deborah has built up a team of builders
0:09:32 > 0:09:36and together they will come in and strip the building back to a shell.
0:09:36 > 0:09:39Leaking roofs, damp, old electrics, plumbing,
0:09:39 > 0:09:42all gets sorted in the course of the work.
0:09:42 > 0:09:45So she was never worried about the building's current condition.
0:09:45 > 0:09:48With this one, what is it that made it worth buying on auction day?
0:09:48 > 0:09:53The fact that we can fit five properties into this building
0:09:53 > 0:09:55is a big bonus.
0:09:55 > 0:09:59Two of them are going to have roof terraces and one of them
0:09:59 > 0:10:04has also got a possible glass dome kitchen, which would make it
0:10:04 > 0:10:06really modern and trendy.
0:10:06 > 0:10:09And yet they are still going to be resold at a reasonable price.
0:10:09 > 0:10:11So the maths is right on it.
0:10:11 > 0:10:14So you're looking at converting into five flats.
0:10:14 > 0:10:17What about the ground floor unit, which is obviously a shop front?
0:10:17 > 0:10:21What we were thinking was that the ground floor could be
0:10:21 > 0:10:26a sort of designer lounge, kitchen, living area for flat two,
0:10:26 > 0:10:29which is going to go on the first level at the back.
0:10:29 > 0:10:34So that would make a one bed flat into a good-sized two-bedroom
0:10:34 > 0:10:38flat with a very interesting kitchen diner.
0:10:38 > 0:10:41So that's if you do get planning permission to convert that.
0:10:41 > 0:10:44What if you don't get planning permission to convert that?
0:10:44 > 0:10:47You will have to use that as a commercial premises, a retail area.
0:10:47 > 0:10:51Yes. Well, if we don't get planning we will be disappointed
0:10:51 > 0:10:55because I think there's no mileage in it as a commercial venture.
0:10:55 > 0:10:59But in the maths, the whole structure of the project has
0:10:59 > 0:11:02allowed for that to be written off if we need to write it off.
0:11:02 > 0:11:05So that is just your little bonus, your little cherry.
0:11:05 > 0:11:09- If you get permission for that, ching, ching!- That's right.
0:11:09 > 0:11:13It would be very nice to add to the profits in that way.
0:11:13 > 0:11:15But if we don't, it's not the end of the world.
0:11:15 > 0:11:17Deborah has a timescale of ten months
0:11:17 > 0:11:22and a budget of 240,000 for the five flats.
0:11:22 > 0:11:25Plus more if they get planning permission to do the rest.
0:11:26 > 0:11:28How do you get the time to do your research,
0:11:28 > 0:11:31to get the planning before it's even gone through?
0:11:31 > 0:11:33I mean, you really are very ahead of the game.
0:11:33 > 0:11:35I make sure a lot is done before the purchase
0:11:35 > 0:11:38because it is too late afterwards so everything is done up front
0:11:38 > 0:11:42and everything is in the buying and the maths.
0:11:42 > 0:11:46- And if you get that right, the rest should follow.- Deborah, good luck.
0:11:46 > 0:11:48I can't wait to see what this property is like
0:11:48 > 0:11:51when it's finished and I hope you get permission for the ground floor.
0:11:51 > 0:11:53- Well done.- Thank you.
0:11:54 > 0:12:00Debbie is experienced, competent, calm and in control.
0:12:00 > 0:12:03I can't actually see this place giving her many problems.
0:12:03 > 0:12:07But will she get planning permission to convert that ground-floor
0:12:07 > 0:12:11shop into another flat? Will that really be the cherry on the cake?
0:12:11 > 0:12:15You can find out what happens later on in the programme.
0:12:19 > 0:12:23So, here is a truly fantastic pub quiz question.
0:12:23 > 0:12:28Where does the timing signal that coordinates the pips,
0:12:28 > 0:12:31as in the beep, beep, beep, where does that come from?
0:12:33 > 0:12:35First guess? Greenwich? Wrong.
0:12:35 > 0:12:38If you are being clever, Rugby?
0:12:38 > 0:12:41Well, you were right until a few years ago.
0:12:41 > 0:12:45But now it's actually a little village in Cumbria.
0:12:47 > 0:12:50The village of Anthorn to be precise.
0:12:50 > 0:12:5413 miles north of Carlisle on the Solway Firth.
0:12:54 > 0:12:59So the transmitting station here is the nation's reference clock.
0:12:59 > 0:13:02Who would have thought?
0:13:02 > 0:13:04# This is radio nowhere
0:13:06 > 0:13:10# Is there anybody alive out there? #
0:13:10 > 0:13:15So, what was on offer at the auction?
0:13:15 > 0:13:18Well, a really interesting opportunity
0:13:18 > 0:13:20right on the edge of the village.
0:13:20 > 0:13:25It's this former post office and store, complete with its own
0:13:25 > 0:13:27letter box and a telephone box
0:13:27 > 0:13:30and a guide price of £10,000 £15,000.
0:13:31 > 0:13:33Let's have a look.
0:13:33 > 0:13:36# Oh, yes, wait a minute, Mr Postman
0:13:36 > 0:13:41# Wa-a-a-a-a-it, Mr Postman... #
0:13:41 > 0:13:47So what have we got? A squeaky door for a start.
0:13:47 > 0:13:51Basically, it's one little building really, with a big area here.
0:13:51 > 0:13:54An area in front of the post office counter there.
0:13:54 > 0:13:57You've got that room towards the back.
0:13:57 > 0:14:01A little anteroom there with the kitchen area and a loo.
0:14:01 > 0:14:05This is obviously where the shop and the post office was.
0:14:05 > 0:14:07And that's basically it.
0:14:10 > 0:14:12That's me done, really!
0:14:14 > 0:14:20Especially as I'm doing my best not to make any postage related puns in my delivery.
0:14:20 > 0:14:22Oh, sorry!
0:14:22 > 0:14:25When this post office, like many, faced closure,
0:14:25 > 0:14:29not even its additional outlet as a sweet shop could save it, echoing
0:14:29 > 0:14:34all over the country the fate of many small village businesses.
0:14:34 > 0:14:39The good news is that even if you have no use for a defunct post office come sweet shop,
0:14:39 > 0:14:42you will undoubtedly have use for the services.
0:14:42 > 0:14:45Mains water, sewerage and electricity are all on site.
0:14:45 > 0:14:47So what to do with it?
0:14:50 > 0:14:55Well, I am trying desperately hard not to make any post office or postage puns.
0:14:55 > 0:14:57It's not easy, I tell you.
0:14:57 > 0:15:00But anyway, what could you perhaps do with this place?
0:15:00 > 0:15:03The other thing you could do is utilise the fact that it has
0:15:03 > 0:15:07actually got outlined planning permission for the creation of a single dwelling.
0:15:07 > 0:15:11There are a few stipulations about the finish and where the gable end needs to be,
0:15:11 > 0:15:15but pretty much, you could design something to your own requirements.
0:15:15 > 0:15:18That would be nice. Certainly this will rural location works.
0:15:18 > 0:15:22Either way, I do think it could be a first-class opportunity.
0:15:23 > 0:15:25Darn it!
0:15:25 > 0:15:29Having punned for so long, it's difficult for me to counter the tenancy.
0:15:30 > 0:15:33So, here's the outside delivered at face value.
0:15:33 > 0:15:36Oh, you see, I just can't stamp it out!
0:15:36 > 0:15:40And it's true, old habits die hard, to be frank. Oh!
0:15:40 > 0:15:42I just wish this rain would stop.
0:15:46 > 0:15:47That's better.
0:15:47 > 0:15:50So what would a detached house sell for
0:15:50 > 0:15:52on the open market in this village?
0:15:52 > 0:15:55We asked a local estate agent along to tell us.
0:15:57 > 0:16:00It would be difficult to put a certain value on this property
0:16:00 > 0:16:04as it is dependent on what the purchaser eventually does with it.
0:16:04 > 0:16:11However, if they were to build a two-storey detached property
0:16:11 > 0:16:16with a garden, you could look for somewhere in the region of £150,000.
0:16:16 > 0:16:19If the purchaser was to demolish the shop
0:16:19 > 0:16:22and build a residential dwelling, they could look to
0:16:22 > 0:16:27bring in a rental value in the region of £300 to £400 per calendar month.
0:16:27 > 0:16:31With demolition very much on the cards, what would somebody
0:16:31 > 0:16:35pay for the privilege to get this small parcel of land?
0:16:35 > 0:16:38Let's find out what happened when it went under the hammer.
0:16:43 > 0:16:47We are on to Lot 31 in Anthorn.
0:16:47 > 0:16:51This is approximately a 21 by ten metre building plot
0:16:51 > 0:16:54that has got outlined planning permission.
0:16:54 > 0:16:56Anybody at ten for this?
0:16:57 > 0:17:01£10,000 seated. We are away. At ten in the room. I will take it in ones.
0:17:01 > 0:17:0411 on the phone. 12, may I see?
0:17:05 > 0:17:1012, I've got. 13. It's against the phone. It's with you madam at 12.
0:17:10 > 0:17:1513 on the phone. 14 back to you. And 15, may I see?
0:17:15 > 0:17:18At £14,000, I am bid.
0:17:18 > 0:17:2114 and a half on the phone. 15. And a half.
0:17:24 > 0:17:29At 15 I'm bid, seated. At £15,000. It's against the phone now.
0:17:29 > 0:17:31It's with the madam at £15,000.
0:17:31 > 0:17:3415 and a half on the phone.
0:17:34 > 0:17:4016, madam. At £16,000, madam. First time. 16.
0:17:40 > 0:17:46Second time. 16. Third and final time. Sold to you.
0:17:47 > 0:17:54The successful bidder of £16,000, hidden from view, was retired journalist, Lucilla,
0:17:54 > 0:17:58who was accompanied by her partner of nine years, Richard, who is a sheep farmer.
0:17:58 > 0:18:02I met them back at the former post office to discover their plans.
0:18:04 > 0:18:09- Lucilla, Richard, lovely to meet you both. Congratulations.- Thank you.
0:18:09 > 0:18:12Well, this is interesting. Tell me why you wanted to buy it.
0:18:12 > 0:18:16Because I am looking for a house for my old age.
0:18:16 > 0:18:18I mean, my extreme old age.
0:18:18 > 0:18:20I live with Richard up the road
0:18:20 > 0:18:26and if he pops his clogs before I do, I need somewhere to live.
0:18:26 > 0:18:29- This is all pretty cheerful! - She thinks I'm going to die first!
0:18:29 > 0:18:34- Really?- Apparently so.- No, it's an insurance.
0:18:34 > 0:18:37I have a little house which I am selling.
0:18:37 > 0:18:39It needs a bit of work
0:18:39 > 0:18:46and it's not in a good situation to be a very old person in.
0:18:46 > 0:18:48It's not on a bus route,
0:18:48 > 0:18:54it doesn't have good internet access and those kind of things.
0:18:54 > 0:18:58And I was looking for the best way with a limited amount of money
0:18:58 > 0:19:00to create a nice little house.
0:19:00 > 0:19:04So this is a chance for you to design something that will suit you to the ground.
0:19:04 > 0:19:08- Hopefully, yes.- And what will go in its place?
0:19:08 > 0:19:12- Do you have any idea at this point? - I think probably a dormer bungalow.
0:19:12 > 0:19:15I would like it to be as green as possible.
0:19:15 > 0:19:21- I'm thinking about ground source heat.- Excellent.
0:19:21 > 0:19:24- And water...- And recycling water.
0:19:24 > 0:19:29Recycling water and maybe solar panels. That kind of thing.
0:19:29 > 0:19:33So what's the sort of build cost, your budget for doing all this?
0:19:33 > 0:19:40I'm hoping that including the cost of the site and the building,
0:19:40 > 0:19:43- that I can do the lot under £100,000.- Right.
0:19:43 > 0:19:48- It depends how big the bungalow is, I suppose.- Yes. - How many bedrooms?- Two.
0:19:48 > 0:19:53So one of the advantages of course at the moment is it has got outline planning permission.
0:19:53 > 0:19:56Are you going to stick pretty much to what's been
0:19:56 > 0:19:58suggested in terms of outline?
0:19:59 > 0:20:04Well, I would like to turn it and face it, you know, to face itself
0:20:04 > 0:20:07- so it gets a lot more sun.- Right.
0:20:07 > 0:20:10- Because at the moment, the gable end faces the road, doesn't it?- Yes.
0:20:12 > 0:20:15I mean, initially I thought it would be nice to build it that way.
0:20:15 > 0:20:17It is a wild flower meadow, that field.
0:20:17 > 0:20:20It is really nice in the summer and it goes up a hill.
0:20:20 > 0:20:25I thought it would be quite nice to have French windows and things out there.
0:20:25 > 0:20:29- But Richard has persuaded me that it's better to have the sun.- Right.
0:20:29 > 0:20:32- You know, on the front. - Well, that's what I think.
0:20:32 > 0:20:35What do the rest of the family think of your plans?
0:20:35 > 0:20:38I think they're all quite interested.
0:20:38 > 0:20:42- So what is the timescale for all of this?- No rush!
0:20:43 > 0:20:47I can see why you say that! Make it slow!
0:20:47 > 0:20:50- I'm hoping a couple of years.- OK.
0:20:51 > 0:20:56That's a relaxed timescale by most standards.
0:20:56 > 0:20:58But I really admire her practical approach to
0:20:58 > 0:21:02moving from the family home and looking ahead to a new
0:21:02 > 0:21:06greener way of living in her purpose-built bungalow.
0:21:08 > 0:21:14If you think about what you can get for £100,000 on the market,
0:21:14 > 0:21:19you probably wouldn't get a really nice, you know, neat,
0:21:19 > 0:21:23insulated, cheap to run house.
0:21:23 > 0:21:25No, absolutely. In a lovely location.
0:21:25 > 0:21:27- Yes.- With beautiful views.
0:21:27 > 0:21:30Yes, there is no denying it is a great location.
0:21:30 > 0:21:34It's been classified as an Area of Outstanding Natural Beauty
0:21:34 > 0:21:39and Lucilla's eco-friendly intentions are shared by Richard.
0:21:39 > 0:21:40He is a conservationist
0:21:40 > 0:21:46and is licensed to look after a rare species in these parts - natterjack toads.
0:21:46 > 0:21:49We discovered them by chance, yes, when was it?
0:21:49 > 0:21:53About 30 years ago. We have been looking after them ever since.
0:21:53 > 0:21:56We've expanded the range of the toads considerably.
0:21:56 > 0:22:00They have a lot of territory around here now, whereas before they were all in one place.
0:22:00 > 0:22:04What's the difference between a natterjack toad and a normal told?
0:22:04 > 0:22:09The easiest distinguishing feature is that the natterjack toad has a gold stripe down its back.
0:22:09 > 0:22:13Oh, wow. Well, it's been fascinating to meet you both and hear the story.
0:22:13 > 0:22:17- I really wish you all the best with it.- Thank you.- And you Richard.
0:22:17 > 0:22:19I think we'll need it.
0:22:21 > 0:22:24Well, I've heard some interesting reasons for wanting to build a house
0:22:24 > 0:22:28in my time but that is certainly up there with the more unusual.
0:22:28 > 0:22:34But how will Lucilla and Richard get on designing and building this place?
0:22:34 > 0:22:36Will Lucilla manage to put his stamp on it?
0:22:36 > 0:22:39You can find out a little later in the show.
0:22:41 > 0:22:45Still to come - Doing things by half has me stumped in Stoke.
0:22:45 > 0:22:47Let's see what it's got to show us.
0:22:53 > 0:22:57And in Anthorn, Cumbria, Lucilla's eco-friendly dream
0:22:57 > 0:23:00is delayed by planning problems.
0:23:06 > 0:23:10Now back to central Folkestone in Kent where this four-storey
0:23:10 > 0:23:14mid-terraced building was bought for 116,000 by Deborah
0:23:14 > 0:23:16on behalf of investor client.
0:23:16 > 0:23:20There were big plans to convert it into five one-bedroom flats
0:23:20 > 0:23:26and if planning approval was granted, to make one of them a large two-bedroom flat.
0:23:27 > 0:23:30So you are looking at converting it into five flats.
0:23:30 > 0:23:34What about the ground floor unit which is obviously a shop front?
0:23:34 > 0:23:37What we were thinking was that the ground floor could be
0:23:37 > 0:23:42a sort of designer lounge, kitchen, living area for flat two,
0:23:42 > 0:23:46which is going to go on the first level at the back.
0:23:46 > 0:23:51So that would make a one bed flat into a good-sized two-bedroom
0:23:51 > 0:23:54flat with a very interesting kitchen diner.
0:23:54 > 0:23:57That's if you do get planning permission to convert that.
0:23:57 > 0:24:00What if you don't get planning permission to convert that?
0:24:00 > 0:24:03You will have to use that as a commercial premises, a retail area.
0:24:03 > 0:24:07Yes. If we don't get planning, we will be disappointed
0:24:07 > 0:24:12because I think there is no mileage in it as a commercial venture.
0:24:12 > 0:24:16But we have in the maths, the whole structure of the project
0:24:16 > 0:24:19has allowed for that to be written off if we need to write it off.
0:24:19 > 0:24:23Deborah's building team were facing a mammoth task in making
0:24:23 > 0:24:27the fabric of the building sound before they could even start
0:24:27 > 0:24:28with the flat conversions.
0:24:28 > 0:24:32Ten months had been the planned timescale.
0:24:32 > 0:24:3613 months later, we're back to see if Deborah has got it all sorted.
0:24:36 > 0:24:38# You can have it all
0:24:38 > 0:24:40# So come on
0:24:40 > 0:24:42# So come on
0:24:42 > 0:24:43# Get it on... #
0:24:43 > 0:24:46Flat one on the first floor is the largest flat.
0:24:48 > 0:24:51Perhaps its most attractive feature can be found
0:24:51 > 0:24:54at the rear of the en-suite bedroom.
0:24:54 > 0:24:56A fantastic sun trap.
0:24:56 > 0:25:00# Shine
0:25:00 > 0:25:02# Let it shine. #
0:25:02 > 0:25:04On to flat two.
0:25:04 > 0:25:05# Stop. #
0:25:05 > 0:25:09Also on the first floor, it has a reasonable sized living area,
0:25:09 > 0:25:12including a kitchen diner.
0:25:14 > 0:25:16And it doesn't end there.
0:25:16 > 0:25:19# You only have to open your eyes
0:25:19 > 0:25:21# You might just get a big surprise. #
0:25:21 > 0:25:23Its own outside area.
0:25:25 > 0:25:28And that's not the only thing in common with flat one.
0:25:29 > 0:25:31It too is one bedroomed.
0:25:31 > 0:25:34Up now to the second floor and flat three.
0:25:34 > 0:25:37# You can have it all
0:25:38 > 0:25:40# So come on, oh come on
0:25:40 > 0:25:42# Get it on
0:25:42 > 0:25:45# I don't know what you're waiting for
0:25:45 > 0:25:48# Your time is coming Don't be late. #
0:25:50 > 0:25:52There are rooftop views from the kitchen
0:25:52 > 0:25:55and ceiling windows to let the daylight...
0:25:55 > 0:25:59# Shine
0:25:59 > 0:26:01# Let it shine. #
0:26:02 > 0:26:06Flat four is also on the second floor. Look familiar?
0:26:06 > 0:26:11That's because the layout is the same as flat one without the outside space.
0:26:12 > 0:26:14On the top floor, the penthouse.
0:26:16 > 0:26:18# Let me show you Let me show you. #
0:26:18 > 0:26:22With finishing touches just being applied to the kitchen units,
0:26:22 > 0:26:26it has a feature fireplace moved from a different part of the building.
0:26:28 > 0:26:32Its internal bathroom is just that with one of the few
0:26:32 > 0:26:35baths in the block and rooftop views across Folkestone.
0:26:37 > 0:26:41Deborah and her investor are now ready to capitalise on their investment,
0:26:41 > 0:26:43but there is no shop conversion.
0:26:46 > 0:26:50In relation to the shops in this area, the council really want
0:26:50 > 0:26:52to hang on to them. We found this out after we bought it.
0:26:52 > 0:26:55There is a lot of money going into this area
0:26:55 > 0:26:59and a lot of regeneration plans so the council, quite rightly so,
0:26:59 > 0:27:01are very keen to hold on to any commercial units.
0:27:01 > 0:27:04So we didn't put a planning application in
0:27:04 > 0:27:09because it would have been a complete waste of time, really, and we put the shop on the market.
0:27:09 > 0:27:14But generally, the people who are interested in buying the shop would want accommodation with it.
0:27:14 > 0:27:18So, really, we have waited until all the flats are done
0:27:18 > 0:27:21until we are seriously going to try and sell it.
0:27:21 > 0:27:25The plan of demolishing part of the rear structure needed a more strategic solution.
0:27:25 > 0:27:28Something we really had to think about quite carefully was
0:27:28 > 0:27:32the removal of rubble from this back building that be demolished.
0:27:32 > 0:27:35Over the back wall here, we've got the supermarket
0:27:35 > 0:27:38and their car park and it probably would have been ideal for us
0:27:38 > 0:27:41if we could have put the skip there and chucked it over the wall.
0:27:41 > 0:27:45But that wasn't so ideal for the supermarket
0:27:45 > 0:27:49so the waste had to be brought through the building to the
0:27:49 > 0:27:53front and put in a big container out there that was on the road.
0:27:54 > 0:27:56We also had scaffolding up.
0:27:56 > 0:27:58That wasn't particularly an issue
0:27:58 > 0:28:02but it does get quite busy around here so you have to be quite careful.
0:28:02 > 0:28:05There are lots of things to think about in relation to
0:28:05 > 0:28:08safety of pedestrians walking underneath,
0:28:08 > 0:28:11especially if you are chucking out large concrete blocks.
0:28:12 > 0:28:16So that side of things, the ripping out, we did have to plan for.
0:28:16 > 0:28:20Deborah put her three month over-run down to the complications
0:28:20 > 0:28:24of a large multistorey building and its plans, but it didn't have a
0:28:24 > 0:28:30massive impact on her budget, which rose from £240,000 to £250,000.
0:28:33 > 0:28:35Deborah wants to sell,
0:28:35 > 0:28:38so we called in two local estate agents to give us their opinions.
0:28:38 > 0:28:43I should imagine any agent would love the commission on this number of flats.
0:28:43 > 0:28:45Deborah's investor, Tony, came along, too.
0:28:47 > 0:28:51They have done a great job. A good build, nice finishes.
0:28:51 > 0:28:53I'm very impressed from what I saw 11 months ago,
0:28:53 > 0:28:57which was somewhat of a disaster. This is wonderful.
0:28:57 > 0:28:59Yes, excellent. Really nice throughout.
0:28:59 > 0:29:01Very fresh, bright and airy.
0:29:01 > 0:29:04The fixtures and fittings are a really nice high standard.
0:29:04 > 0:29:06Yes, it should sell quite quickly.
0:29:08 > 0:29:12The purchase price was 116,000 and the renovations have
0:29:12 > 0:29:18cost £250,000, bringing the total investment to £366,000.
0:29:18 > 0:29:21What resale prices do the agents think the flats will fetch
0:29:21 > 0:29:25and will Deborah have made Tony a handsome profit?
0:29:28 > 0:29:31I would say if these flats were put on the market for sale now,
0:29:31 > 0:29:35they would range from around £70,000 to £80,000.
0:29:35 > 0:29:39Obviously, the ones with the terraces would be at the upper end.
0:29:39 > 0:29:42With the top floor apartment, which is the smallest,
0:29:42 > 0:29:45I would value that in the region of £75,000.
0:29:45 > 0:29:48Then, the one bed first-floor terraced apartment,
0:29:48 > 0:29:51I would value in the region of £95,000.
0:29:51 > 0:29:55The agent who gave the lower valuations feels this area
0:29:55 > 0:30:00isn't quite regenerated sufficiently yet to warrant higher values.
0:30:00 > 0:30:04These lower values give a total of 380,000.
0:30:04 > 0:30:10But the other agent's high valuations total 425,000,
0:30:10 > 0:30:15which would mean a profit of £59,000 minus taxes and expenses.
0:30:16 > 0:30:19But what does investor Tony think of that?
0:30:22 > 0:30:26The first valuation is a little on the low side from what we thought.
0:30:26 > 0:30:30The other one is more or less in line. So we're not too far out.
0:30:30 > 0:30:32It is not too much different.
0:30:32 > 0:30:34Not forgetting the shop,
0:30:34 > 0:30:39where agents valuations range from £70,000 to £100,000.
0:30:39 > 0:30:43Yes, it could make the difference between a profit on this property
0:30:43 > 0:30:47being mediocre to the profit being very attractive.
0:30:47 > 0:30:50So it remains to be seen.
0:30:50 > 0:30:54It still works without the shop but it works a lot better
0:30:54 > 0:30:57if the shop comes in at that sort of valuation for sure.
0:30:57 > 0:31:01An additional £100,000 to the total would certainly make things
0:31:01 > 0:31:03very attractive indeed.
0:31:03 > 0:31:05So was this a good experience for Tony?
0:31:06 > 0:31:09Yes. I think Debbie has learned to put up with me!
0:31:11 > 0:31:14It has been fun, hasn't it?
0:31:14 > 0:31:17I'm sure we will be doing more in the years to come.
0:31:21 > 0:31:26Over to Burslem now, commonly known as the mother town of The Potteries.
0:31:26 > 0:31:29It's one of six that make up Stoke-on-Trent.
0:31:29 > 0:31:32Burslem has historical links to pottery,
0:31:32 > 0:31:34mining and working canal barges.
0:31:35 > 0:31:38A couple of minutes' walk from the local shops and a mile
0:31:38 > 0:31:42from the local train station is the property I am here to see.
0:31:42 > 0:31:47A classic two-bed mid-terrace. A guide price of £49,000-plus.
0:31:47 > 0:31:50Let's see what it's got to show us.
0:31:57 > 0:32:00Well, that's a first! What is the point of that?
0:32:03 > 0:32:05There must be a way of...
0:32:05 > 0:32:07Who would...? Why?
0:32:07 > 0:32:10I mean... Excuse me Mr door-designing person,
0:32:10 > 0:32:13why on earth would you design something like that?
0:32:13 > 0:32:17What is the point of a door that opens halfway that no normal
0:32:17 > 0:32:20sized person could actually get through? Ridiculous!
0:32:20 > 0:32:23They have probably sold it as some additional bonus.
0:32:23 > 0:32:26It's like, "Look, buy a door you can't actually get through.
0:32:26 > 0:32:28"Save energy by not letting as much air out."
0:32:28 > 0:32:31I don't know. Completely bonkers. Anyway, rant over.
0:32:31 > 0:32:36Into the living room and it's not bad. Reasonable-sized ceilings.
0:32:36 > 0:32:39I mean, you know, this is always going to be what it is,
0:32:39 > 0:32:45which is a two-up, two-down terrace in a northern industrial town,
0:32:45 > 0:32:51built for the workers and served that purpose really well indeed.
0:32:51 > 0:32:54Two-up, two-down was how it would have originally been
0:32:54 > 0:32:57so two rooms down here and two bedrooms upstairs.
0:32:57 > 0:33:04And a nice additional bit of space created by the way that under stairs has been sorted.
0:33:04 > 0:33:08Then, as so often happens with these kinds of properties,
0:33:08 > 0:33:10somebody has extended on to the back.
0:33:10 > 0:33:14This would have just been a little courtyard area at the back
0:33:14 > 0:33:18but it has been built on to create single-storey extension housing.
0:33:18 > 0:33:20The kitchen and then through there to the loo.
0:33:20 > 0:33:23That is the only loo and bathroom in the property.
0:33:23 > 0:33:26In other parts of the country, perhaps that might be an issue.
0:33:26 > 0:33:30Around here, it's pretty much what people expect, so it's not a big problem.
0:33:30 > 0:33:32The kitchen, though, is so in need of some updating
0:33:32 > 0:33:35and these things on the wall, just in case you were wondering,
0:33:35 > 0:33:38it's not lino, it's actually individual tiles.
0:33:38 > 0:33:41Somebody has gone to a lot of trouble to get it looking like that.
0:33:47 > 0:33:51Not the height of fashion nowadays, and removing them will be
0:33:51 > 0:33:54just as hard work as putting them up was.
0:33:54 > 0:33:56Let's hope the tiles don't continue upstairs.
0:33:58 > 0:34:03So upstairs and two half-decent sized bedrooms. Very classic layout.
0:34:03 > 0:34:06But while you're up here, take a look out the window and you get
0:34:06 > 0:34:09a chance to see the state of the roof of that extension and
0:34:09 > 0:34:13as you can see, the ridge looks to me like it needs a bit of attention.
0:34:13 > 0:34:15The building itself looks relatively new as does the roof,
0:34:15 > 0:34:18but just that top bit definitely needs sorting out.
0:34:18 > 0:34:21If water got in there it would cause a few problems.
0:34:21 > 0:34:25So a great vantage point just to check things out.
0:34:25 > 0:34:26# Check-check-check-check it out
0:34:26 > 0:34:29# What-what-what's it all about. #
0:34:29 > 0:34:33Even with a relatively low guide price of £49,000,
0:34:33 > 0:34:36roofs and especially leaks must be checked out.
0:34:36 > 0:34:40And there are more joys to behold on the other part of this house,
0:34:40 > 0:34:42not least the plumbing.
0:34:44 > 0:34:49Well, up here on the mini landing in between the two bedrooms,
0:34:49 > 0:34:52another DIY design classic.
0:34:52 > 0:34:58As you can see, a pipe, possibly water, possibly even worse - gas,
0:34:58 > 0:35:01just floating there like that.
0:35:01 > 0:35:05Ready for somebody to trip over or stand on, or whatever.
0:35:07 > 0:35:09Incredible!
0:35:09 > 0:35:11# You got it wrong. #
0:35:11 > 0:35:14Box it in, re-route it,
0:35:14 > 0:35:18just make sure you make it safe for goodness' sake.
0:35:18 > 0:35:20Outside, there's a little yard
0:35:20 > 0:35:24with a shed that has its own roof problems.
0:35:24 > 0:35:27It's all pretty straightforward and could represent a good
0:35:27 > 0:35:30investment at that guide price of 49,000.
0:35:32 > 0:35:35We asked a local property agent for his opinion.
0:35:38 > 0:35:40First impressions of the property is that
0:35:40 > 0:35:43although it has been well maintained over the years,
0:35:43 > 0:35:46it's just really at the point where it needs refurbishment
0:35:46 > 0:35:50and updating, which most new buyers would want to do.
0:35:50 > 0:35:53The main thing the property requires is heating,
0:35:53 > 0:35:55probably gas central heating.
0:35:55 > 0:35:58It does need a new kitchen, new bathroom
0:35:58 > 0:36:02and really complete decor throughout the whole property.
0:36:02 > 0:36:04Quite a long to-do list then.
0:36:04 > 0:36:07In fact, let's face it, it's a total refurbishment.
0:36:07 > 0:36:11But when the to-do list is done, what could the property sell for?
0:36:11 > 0:36:13Once renovated to a good standard,
0:36:13 > 0:36:19I would anticipate a resale value in the region of £70,000 to £75,000.
0:36:19 > 0:36:20And what about rental?
0:36:20 > 0:36:26Rental income after refurbishment would be in the region of £400 per calendar month.
0:36:26 > 0:36:28If this was my property, I think
0:36:28 > 0:36:32I would look to refurbish the property and let the property to
0:36:32 > 0:36:38provide a reasonable income and then look at it as a long-term investment.
0:36:41 > 0:36:43Well, not surprisingly, the first thing I would do
0:36:43 > 0:36:46if I bought this house would be to replace the front door.
0:36:46 > 0:36:48That would drive me absolutely bonkers.
0:36:48 > 0:36:52Apart from that, it's a good, solid little terraced house.
0:36:52 > 0:36:55Not particularly exciting, perhaps, but a reasonable home
0:36:55 > 0:36:58and a great rental opportunity for someone.
0:36:58 > 0:37:01Let's see who bought it when it went under the hammer.
0:37:05 > 0:37:06A mid-terraced house.
0:37:06 > 0:37:09It has double glazing, two reception rooms, two bedrooms.
0:37:11 > 0:37:1245 to get it going.
0:37:15 > 0:37:1940 then. There, thank you. £40,000.
0:37:19 > 0:37:21We'll go in twos.
0:37:21 > 0:37:25The bid is at £40,000. 42. 44. 46.
0:37:25 > 0:37:2848. 50.
0:37:31 > 0:37:37At £50,000, seated right. At £50,000. 52.
0:37:39 > 0:37:42No? At £50,000, seated back right then.
0:37:42 > 0:37:45I'm selling it at £50,000 for the first time.
0:37:45 > 0:37:48£50,000 for the second time.
0:37:48 > 0:37:51Third and final time at £50,000
0:37:52 > 0:37:54You have bought it, sir. Well done.
0:37:56 > 0:37:59# Just the two of us
0:37:59 > 0:38:01# We can make it if we try
0:38:01 > 0:38:03# Just the two of us.
0:38:03 > 0:38:06# Just the two of us... #
0:38:06 > 0:38:09The successful bidder was David with £50,000.
0:38:09 > 0:38:11Former electrician David
0:38:11 > 0:38:14and his wife Annemarie have both recently quit
0:38:14 > 0:38:18their careers to become full-time property developers together.
0:38:18 > 0:38:20A brave move.
0:38:22 > 0:38:25I met them at the property to find out more.
0:38:27 > 0:38:31- Annemarie, David, great to meet you both.- And you.- Congratulations.
0:38:31 > 0:38:36- Thank you.- Tell me why you wanted to buy this house here.
0:38:36 > 0:38:39We have been looking at properties in the area.
0:38:39 > 0:38:42We have kind of done our research,
0:38:42 > 0:38:45made a spreadsheet of all the properties in our price range.
0:38:45 > 0:38:48Spreadsheet? That sounds terribly well organised.
0:38:48 > 0:38:52- It was well organised. - So how many did you look at?
0:38:52 > 0:38:5514, we looked at in the viewing day.
0:38:55 > 0:39:00- Wow!- And at the auction we narrowed it down to eight.- Right.
0:39:00 > 0:39:04What was it like going around so many properties in one day?
0:39:07 > 0:39:09Some of them blended into one, really.
0:39:09 > 0:39:12Some we weren't able to time the viewing schedules
0:39:12 > 0:39:15so we just looked from the outside.
0:39:15 > 0:39:19- But this wasn't one of them.- You did come inside?- We did come inside.
0:39:19 > 0:39:22Gold star for David and Annemarie.
0:39:22 > 0:39:27Research is a must when taking on a new project never mind a new career.
0:39:27 > 0:39:30The husband-and-wife team are originally from Hertfordshire
0:39:30 > 0:39:33but have chosen Stoke for its more affordable housing.
0:39:33 > 0:39:35Wise move again.
0:39:35 > 0:39:39But what drove them to give up their careers for property development?
0:39:39 > 0:39:43- I was a probation officer for London. - What were you doing?
0:39:43 > 0:39:46An electrician for 30 years
0:39:46 > 0:39:48but I was a director of an electrical company.
0:39:48 > 0:39:52I was a local councillor so I was getting home at seven o'clock,
0:39:52 > 0:39:56showered, shaved, back out, meeting and we had no time together.
0:39:56 > 0:39:59How recently was this?
0:39:59 > 0:40:01- Three months ago.- Oh, gosh.
0:40:01 > 0:40:05Did you both then give up your job within what period of time?
0:40:05 > 0:40:06A few weeks of each other.
0:40:06 > 0:40:11- So you went from a steady household income...- Quite a good income.
0:40:11 > 0:40:13But there's more to life than money.
0:40:13 > 0:40:16- We've got to have quality of life as well.- Yeah, no, absolutely.
0:40:17 > 0:40:21That search for quality of life means that David and Annemarie have
0:40:21 > 0:40:23clearly made a brave decision.
0:40:23 > 0:40:26I reckon they've chosen a good first project.
0:40:26 > 0:40:28They are doing all the right things
0:40:28 > 0:40:31but it's certainly going to be a steep learning curve
0:40:31 > 0:40:34in the six to eight-week timescale they've set themselves.
0:40:34 > 0:40:37Tell me what you're going to do to it.
0:40:38 > 0:40:40- Everything, I think.- Right.
0:40:40 > 0:40:42Erm, new kitchen,
0:40:42 > 0:40:46not sure if we're going to try and move the bathroom upstairs.
0:40:46 > 0:40:49Turn the bathroom into a study.
0:40:49 > 0:40:52Check out how much that would add or whatever to the value
0:40:52 > 0:40:55because you might find it doesn't actually add a lot.
0:40:55 > 0:40:57Central heating.
0:40:57 > 0:41:01Central heating, re-plastering, new flooring downstairs.
0:41:01 > 0:41:04- There's quite a lot of work. - No kidding.
0:41:04 > 0:41:06Have to ask you about the front door.
0:41:06 > 0:41:07Yes, it's tight, isn't it?
0:41:07 > 0:41:11The door seems to be the most ridiculous design I've ever seen.
0:41:11 > 0:41:15Why would it open halfway? I can't figure it out.
0:41:15 > 0:41:16- It will be going.- Good!
0:41:16 > 0:41:21And then, upstairs on the little landing there's a pipe
0:41:21 > 0:41:23- that's runs across. - That's plumbers for you.
0:41:23 > 0:41:25The shortest route.
0:41:25 > 0:41:28- It's a classic, is in it? - I've seen loads of them.
0:41:28 > 0:41:30- It'll be coming out.- Good.
0:41:32 > 0:41:36So, a long list of jobs but David seems to know what he's doing
0:41:36 > 0:41:40and will do a lot of the work himself which should be a money saver.
0:41:40 > 0:41:42Speaking of which...
0:41:42 > 0:41:47- What's the budget? - Eight to ten. Hopefully.
0:41:49 > 0:41:53David and Annemarie seem a little nervous but that's to be expected.
0:41:53 > 0:41:57Choosing a smaller, cheaper property to begin with is a smart move.
0:42:01 > 0:42:05What's the idea? Is it to do it up and sell it on or to rent it out?
0:42:05 > 0:42:09Well, we were hoping to do it up and sell it
0:42:09 > 0:42:12and then move to the next one.
0:42:12 > 0:42:17But we have seen some properties in the same area
0:42:17 > 0:42:19that seem to be not as worth as much money
0:42:19 > 0:42:24as what we thought they were. Ah. So we may rent.
0:42:24 > 0:42:27The rental return isn't bad, is it?
0:42:27 > 0:42:31- I haven't really looked into it. - It isn't bad.- OK.
0:42:31 > 0:42:35You could start building up a portfolio of properties and before you know it, you've got ten.
0:42:35 > 0:42:38- It's a brave thing you have done. - Yes!
0:42:38 > 0:42:43- What have your friends or family said?- Some have said mad but...
0:42:43 > 0:42:47A lot of good wishes but, yeah.
0:42:49 > 0:42:50A bit mad.
0:42:50 > 0:42:54Well, you've got to make a success of it and then you can show them.
0:42:54 > 0:42:57- Yes, exactly.- Good look with it. - Thank you very much.
0:42:57 > 0:42:59- Nice to meet you both. - And you.- Thank you.
0:43:01 > 0:43:05So, Annemarie and David going from being employed
0:43:05 > 0:43:10to self-employed and becoming property developers.
0:43:10 > 0:43:12Good idea to start small
0:43:12 > 0:43:17and at the lower end of the price bracket with this place in Stoke.
0:43:17 > 0:43:22How will they get on sorting it out? You can find out later in the show.
0:43:25 > 0:43:28We've seen how one of the properties turned out on today's show
0:43:28 > 0:43:29but what about the others?
0:43:29 > 0:43:32Has all the work be done? Let's find out.
0:43:34 > 0:43:37Earlier I was on the west coast of Cumbria
0:43:37 > 0:43:40to see the former post office of Anthorn
0:43:40 > 0:43:43and meet its new owner, retired journalist, Lucilla,
0:43:43 > 0:43:46who bought the '50s shack for £16,000.
0:43:49 > 0:43:52Well, this is interesting, tell me why you wanted to buy it.
0:43:52 > 0:43:56Because I'm looking for a house for my old age.
0:43:56 > 0:43:59I mean, my extreme old age.
0:43:59 > 0:44:01I live with Richard at the moment.
0:44:01 > 0:44:06If he pops his clogs before I do I need somewhere to live.
0:44:06 > 0:44:09- This is all pretty cheerful. - She thinks I'm going to die first.
0:44:09 > 0:44:13- Really?- No, it's an insurance.
0:44:15 > 0:44:18When we first saw the post office with outline planning permission
0:44:18 > 0:44:22it was pretty clear that the dilapidated building had to go.
0:44:24 > 0:44:28Two years and five months later, it has.
0:44:28 > 0:44:31Nearly six months later than planned,
0:44:31 > 0:44:34there's the shell of a new building.
0:44:34 > 0:44:38# So it's taking the long way home
0:44:39 > 0:44:44# Because I don't want to be wasting my time alone....#
0:44:44 > 0:44:48But don't panic, Richard hasn't, to borrow Lucilla's words,
0:44:48 > 0:44:51popped his clogs just yet.
0:44:51 > 0:44:53He's busy looking after his sheep and toads.
0:44:56 > 0:44:59The building's footprint is definitely larger
0:44:59 > 0:45:02but what caused the major delays with the project?
0:45:03 > 0:45:07It took much longer to sell my own house than I thought it would.
0:45:07 > 0:45:10In fact, it took probably a year
0:45:10 > 0:45:13although I had a buyer from day one.
0:45:13 > 0:45:16It took them that long to get a mortgage.
0:45:16 > 0:45:20Lucilla also had trouble getting planning permission.
0:45:20 > 0:45:23In the 1940s, the village was host to an airbase
0:45:23 > 0:45:26and transmitting station known as HMS Nuthatch.
0:45:26 > 0:45:30There were concerns Lucilla might be building on land
0:45:30 > 0:45:33contaminated with waste from the base.
0:45:33 > 0:45:36Eventually, she overcame this unforeseen issue.
0:45:36 > 0:45:40All I had to do was provide a statement and a map
0:45:40 > 0:45:46showing the layout of the old airfield and that was that.
0:45:46 > 0:45:48With planning permission granted,
0:45:48 > 0:45:51it took just two days to demolish the old building
0:45:51 > 0:45:55and work on the new energy-saving building could begin.
0:45:55 > 0:46:00It's made of solid blocks with the insulation on the outside,
0:46:00 > 0:46:04covered by a metal mesh and then rendered.
0:46:04 > 0:46:09This makes the blocks act like a storage heater.
0:46:09 > 0:46:12I'm having underfloor heating
0:46:12 > 0:46:17and apparently you need very little input of heat of any sort,
0:46:17 > 0:46:20whatever sort of heat you have, you need very little of it.
0:46:20 > 0:46:25With no gas in the village, Lucilla has opted for electric heating
0:46:25 > 0:46:28of the floors plus a wood burning stove.
0:46:28 > 0:46:31The solar panels will also help with the economy of the building
0:46:31 > 0:46:35but the delays must have had an impact on the budget.
0:46:35 > 0:46:39I've never known building materials to get cheaper as time goes on.
0:46:41 > 0:46:46I had thought perhaps in the region of 100,000.
0:46:47 > 0:46:50But I can see now that was unrealistic.
0:46:50 > 0:46:54I've already spent 85,000...
0:46:54 > 0:46:59That's everything from the very, very start to now.
0:46:59 > 0:47:03Every last little thing has been logged down at 85,000
0:47:03 > 0:47:08but as you can see I've still got quite a long way to go.
0:47:08 > 0:47:13So, more realistically, and this is clawing back
0:47:13 > 0:47:18on some of my original plans and ideas, probably 130.
0:47:18 > 0:47:22When Lucilla says everything, she's included
0:47:22 > 0:47:25the original purchase price of £16,000 in her total.
0:47:25 > 0:47:30But even after clawing back it does seem a generous space.
0:47:31 > 0:47:33This is the main bedroom.
0:47:33 > 0:47:37Through the door to the small bathroom.
0:47:38 > 0:47:40Utility room.
0:47:41 > 0:47:45And along the corridor, that's the front door by the way,
0:47:47 > 0:47:50main living room, kitchen.
0:47:50 > 0:47:55Kitchen at that end, living room with the wood-burning stove there.
0:47:55 > 0:47:59Through this door to the study come bedroom.
0:48:00 > 0:48:03And she's estimating another six months to completion
0:48:03 > 0:48:06of what she calls, her insurance.
0:48:06 > 0:48:09# So it's taking the long way home
0:48:10 > 0:48:15# Because I don't want to be wasting my time alone...#
0:48:19 > 0:48:21Lucilla's never happier than when she's gardening.
0:48:21 > 0:48:25She's got grand plans on the horticultural front.
0:48:25 > 0:48:29That's the one bit of the house I can actually envisage.
0:48:29 > 0:48:34I'm having a paved area surrounded by shrubs and fruit trees,
0:48:34 > 0:48:37and perennial, big perennial flowers
0:48:37 > 0:48:40that attract butterflies and insects.
0:48:40 > 0:48:46At the back I'm having, I'm hoping to have similar fruit trees
0:48:46 > 0:48:51and bushes around the perimeter and some raised beds for vegetable growing.
0:48:51 > 0:48:54And some grass, of course, as well.
0:48:56 > 0:48:59We know it's not finished yet but we asked two local estate agents
0:48:59 > 0:49:05to come and imagine it is finished, and given some valuations.
0:49:05 > 0:49:06The layout is really nice.
0:49:06 > 0:49:11They've got a big open-plan kitchen diner come lounge.
0:49:11 > 0:49:14That's quite good. Taking advantage of the views and things
0:49:14 > 0:49:16and still two decent sized bedrooms.
0:49:16 > 0:49:19One of which could be used as a study. It's looking good.
0:49:19 > 0:49:23Selling points of the property are it's simple, compact
0:49:23 > 0:49:24and you get a spacious layout
0:49:24 > 0:49:27and the views to the rear and side of the property.
0:49:27 > 0:49:30If Lucilla does decide to rent the property
0:49:30 > 0:49:33what sort of figure can she expect?
0:49:33 > 0:49:36Once complete in the rental market I would expect the property
0:49:36 > 0:49:41to achieve in the region of £370-£395 per calendar month.
0:49:41 > 0:49:44If this property was to come on the rental market once completed
0:49:44 > 0:49:48I would expect it to achieve between £450-£500 per calendar month.
0:49:48 > 0:49:52I think that's fairly high for around here but possible,
0:49:52 > 0:49:56feasible for a nice and decent house.
0:49:56 > 0:49:59Assuming her overspend doesn't get any bigger,
0:49:59 > 0:50:03Lucilla's total investment will be 130,000.
0:50:03 > 0:50:06The average of the rental figures would give her
0:50:06 > 0:50:08a yield of nearly 4%.
0:50:08 > 0:50:12What about the very unlikely event that she decided to sell?
0:50:12 > 0:50:15On the open market in terms of a valuation,
0:50:15 > 0:50:18a property like this, it's a little difficult when it's a shell,
0:50:18 > 0:50:22but I would imagine it would be somewhere in the region of £100,000.
0:50:22 > 0:50:26You'd achieve offers in the region of £90,000 but pricing slightly
0:50:26 > 0:50:29higher at £100,000 in order to achieve those offers.
0:50:29 > 0:50:33The figures don't sway my opinion at all.
0:50:34 > 0:50:38I know what I'm building the house for and I know...
0:50:39 > 0:50:42..I know what I want at the end of the day.
0:50:42 > 0:50:46And, erm, it's incidental.
0:50:51 > 0:50:55Back to Burslem in the Potteries now where this two-bedroom mid-terrace
0:50:55 > 0:50:59was snapped up by David and Annemarie for £50,000,
0:50:59 > 0:51:03just £1,000 more than the guide price.
0:51:03 > 0:51:05The plan was to do up and sell on
0:51:05 > 0:51:08but now they're looking at renting out.
0:51:08 > 0:51:11It was a brave career changing move into property development
0:51:11 > 0:51:12for them both.
0:51:12 > 0:51:15You've given up your jobs to do this.
0:51:15 > 0:51:17What were you doing until recently?
0:51:17 > 0:51:21- I was a probation officer for London. - Oh, wow. And what were you doing?
0:51:22 > 0:51:26Electrician for 30 years but I was a director of an electrical company.
0:51:26 > 0:51:31Needing more time together and with family, it was time for a change.
0:51:31 > 0:51:36But it was far from a gentle start with plenty of rework to be done.
0:51:36 > 0:51:39Re-plastering, re-plumbing, redecorating
0:51:39 > 0:51:42besides the more familiar territory of rewiring.
0:51:44 > 0:51:46Ten months on, we're back to find out
0:51:46 > 0:51:51if David can make sparks fly in the room we last saw looking like this.
0:51:53 > 0:51:56# This ain't real, this ain't cool
0:51:56 > 0:51:58# This ain't what I signed up to
0:51:58 > 0:52:02# This ain't right, it's no good
0:52:02 > 0:52:04# No good...#
0:52:04 > 0:52:05Let's see.
0:52:05 > 0:52:08# Everything is changing
0:52:08 > 0:52:10# And I've been here for too long
0:52:10 > 0:52:13# Going through the same things
0:52:13 > 0:52:16# I've been hurting too long, got to move on
0:52:16 > 0:52:21# Say I can't do this any more
0:52:21 > 0:52:24# If everything is changing
0:52:24 > 0:52:26# And I know
0:52:26 > 0:52:29# You've got to let go
0:52:29 > 0:52:32# Oh-oh-oh, oh-oh-oh...#
0:52:33 > 0:52:38At the far end of the extension was the only bathroom in the house.
0:52:38 > 0:52:42This suite may have been de rigueur in the 1980s
0:52:42 > 0:52:44but now pampas is definitely past it.
0:52:44 > 0:52:47# Oh-oh-oh, oh-oh-oh
0:52:47 > 0:52:49# Got to let go....#
0:52:51 > 0:52:55The bathroom's taken over part of the largest bedroom.
0:52:55 > 0:53:00Ingenious plumbing through the attic makes these facilities much more on-tap.
0:53:07 > 0:53:11And for the effect it's had on the bedroom, I think it's well worth it.
0:53:12 > 0:53:15# Everything is changing
0:53:15 > 0:53:18# I've been here for too long
0:53:18 > 0:53:20# Going through the same things...#
0:53:22 > 0:53:26The front bedroom decor was definitely '70s vintage.
0:53:26 > 0:53:28Time for a change.
0:53:29 > 0:53:32# Everything is changing
0:53:32 > 0:53:34# And I know, yeah...#
0:53:36 > 0:53:39All new electrics, central heating and carpeting
0:53:39 > 0:53:42completes the refurbishment of the upstairs.
0:53:42 > 0:53:44But what of the rest of downstairs?
0:53:44 > 0:53:47Well, Dave's work down here produced results
0:53:47 > 0:53:49nothing short of electrifying.
0:53:52 > 0:53:54# Oh-oh-oh, oh-oh-oh
0:53:54 > 0:53:57# Got to let go
0:53:57 > 0:54:00# I've been here for too long
0:54:00 > 0:54:02# I've been here for too long...#
0:54:02 > 0:54:05A bright colour scheme with contrasting wood floors gives
0:54:05 > 0:54:08a contemporary feel to the downstairs rooms.
0:54:10 > 0:54:13# I've been here for too long
0:54:13 > 0:54:16# Everything is changing...#
0:54:20 > 0:54:23Dave's been living here for ten weeks. How's he found it?
0:54:23 > 0:54:26We were hoping to take six to eight weeks.
0:54:26 > 0:54:32Er, but we decided to extend the kitchen, take the wall down.
0:54:32 > 0:54:37By removing this wall they were able to get more galley kitchen area.
0:54:37 > 0:54:41Yet, there was still enough remaining space for a utility/cloak room.
0:54:41 > 0:54:45All of these things added to the overrun on the time scale,
0:54:45 > 0:54:48but how did the budget fare?
0:54:48 > 0:54:53We originally budgeted to spend between £8,000-£10,000.
0:54:53 > 0:54:59I think it's coming in at around £12,500 which includes the fees.
0:54:59 > 0:55:02Annemarie reckons the kitchen tiles and the wood flooring
0:55:02 > 0:55:06were the main reasons they exceeded their budget.
0:55:06 > 0:55:08To cut costs, David did most of the work himself
0:55:08 > 0:55:11apart from the plastering and plumbing.
0:55:11 > 0:55:15Speaking of plumbers, what happened about that halfway landing pipe?
0:55:17 > 0:55:20The dreaded pipe at the top of the stairs
0:55:20 > 0:55:22was the main gas pipe coming in.
0:55:22 > 0:55:25When the heating engineers came in they couldn't believe that
0:55:25 > 0:55:27a gas pipe was just there.
0:55:27 > 0:55:32They installed new central heating, new pipe work throughout.
0:55:32 > 0:55:35Stripping out the garden shed was done with
0:55:35 > 0:55:37the help of Anne-Marie's son and daughter
0:55:37 > 0:55:40and the extension roof ridge has been fixed.
0:55:40 > 0:55:43How does it feel after that little lot?
0:55:43 > 0:55:48A lot of time, blood, effort, lost 2½ stone. So...
0:55:50 > 0:55:53- No, feel really...- Proud of the end product.- Really proud.
0:55:55 > 0:55:57I think they've got every reason to be proud.
0:55:57 > 0:56:00They've done a great job and used the space brilliantly.
0:56:00 > 0:56:03However, I'm a bit worried didn't take my advice
0:56:03 > 0:56:05about not moving the bathroom.
0:56:05 > 0:56:07They may not get back what it cost.
0:56:10 > 0:56:14Time to ask two local estate agents that vital question.
0:56:14 > 0:56:17Will the plan to sell on be viable?
0:56:17 > 0:56:20Firstly though, they must be impressed.
0:56:20 > 0:56:23The changes have been really good to the property.
0:56:23 > 0:56:28It's modern, neutral, it's all fresh and clean and tidy inside.
0:56:28 > 0:56:31It really would appeal to broad types of different buyer.
0:56:31 > 0:56:34I feel the main selling points for the property
0:56:34 > 0:56:36is the good-sized kitchen and installation
0:56:36 > 0:56:40of a first-floor bathroom along with the downstairs WC and utility room.
0:56:40 > 0:56:45The total investment so far as up to £62,000.
0:56:45 > 0:56:46What's it worth now?
0:56:46 > 0:56:49If I were to market the property in today's market
0:56:49 > 0:56:53I would suggest an initial asking price of £72,500.
0:56:53 > 0:56:59I would place this property on the market in the region of £75,000.
0:56:59 > 0:57:03We were hoping for 75,000 rather than 70-72,500.
0:57:04 > 0:57:07So, 75 we would be happy with.
0:57:07 > 0:57:09And as for the rental?
0:57:09 > 0:57:12In today's market, I would suggest for the rental side,
0:57:12 > 0:57:16we'd put the property on the market at £395 per calendar month.
0:57:16 > 0:57:19I would anticipate a likely rental income
0:57:19 > 0:57:21in the region of £400 per calendar month.
0:57:21 > 0:57:25Taking the average of those two valuations would give
0:57:25 > 0:57:28David and Annemarie a yield of just over 7.5%.
0:57:28 > 0:57:30Are they tempted?
0:57:30 > 0:57:36After getting the valuations, we will be sticking with our original
0:57:36 > 0:57:39plan of selling the property on so we can move on to our next project.
0:57:41 > 0:57:42I can't say I blame them.
0:57:42 > 0:57:45They're looking at a potential profit of £12,500.
0:57:45 > 0:57:48Not bad at all for their first project.
0:57:48 > 0:57:52But this project wasn't about the money, what about the time together?
0:57:53 > 0:57:57- It's been good working together. - Yes. Without arguing.
0:57:57 > 0:57:59Without arguing.
0:57:59 > 0:58:02For me, I just wish they could have stretched
0:58:02 > 0:58:06to a normal-sized front door.
0:58:06 > 0:58:12Well, more property owners there who took the plunge
0:58:12 > 0:58:14and bought at auction.
0:58:14 > 0:58:17Make sure you join us next time for more Homes under the Hammer.